2015 Annual Financial Audit by Orland Fire Protection District

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

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE

ANNUAL FINANCIAL

YEAR ENDED DECEMBER

REPORT

31, 2015

Submitted by: Kerry Sullivan Finance Director

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,2015

CONTENTS

INTRODUCTORY

SECTION

Letter of Transmittal

i-v

GFOA Certificate of Achievement

Organizational Chart

VII

Names and Titles of Principal Officials

viii

FINANCIAL SECTION Independent Auditor's Report

IX - XI

Management's Discussion and Analysis

xii - xxi

Basic Financial Statements: Government-wide

Financial Statements:

Statement of Net Position - Governmental Activities Statement of Activities

Fund Financial Statements: Balance Sheet - Governmental Funds

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

Statement of Revenues, Governmental Funds

Expenditures

and Changes

In Fund Balances

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

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

7 - 10

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2015

CONTENTS

Statement of Net Position - Fiduciary Funds

Statement of Changes in Net Position - Fiduciary Funds

Notes to Basic Financial Statements

13 - 42

Required Supplementary Information: Firefighters' Pension Plan

43 - 45

Illinois Municipal Retirement Fund

46 - 47

Retiree Health Insurance Plan

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

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

Corporate Fund:

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

Encumbrances

and Changes In 52 - 53

Tort Liability Fund: Balance Sheet Schedule of Revenues, Expenditures, Fund Balances - Budget and Actual

54 Encumbrances

and Changes m

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2015

CONTENTS

Emergency Rescue Fund: Balance Sheet

Schedule of Revenues, Expenditures, Fund Balances - Budget and Actual

Encumbrances

and Changes

57 - 58

Ambulance Fund: Balance Sheet

Schedule of Revenues, Expenditures, Balances - Budget and Actual

Encumbrances

and Changes in Fund 60 - 61

Capital Projects Fund: Balance Sheet

Schedule of Revenues, Expenditures, Balances - Budget and Actual

Encumbrances

and Changes in Fund

Nonmajor Governmental Fund: Debt Service Fund: Balance Sheet Schedule of Expenditures Actual

64 and Changes in Fund Balances - Budget and 65

Fiduciary Funds: Combining Schedule of Net Position - Fiduciary Funds

Combining Schedule of Changes in Net Position - Fiduciary Funds

Firefighters' Pension Fund: Statement of Net Position

Statement of Changes in Net Position

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2015

CONTENTS

Retiree Health Insurance Fund: Statement of Net Position

Statement of Changes in Net Position

STATISTICAL

SECTION

Net Position by Component

72 - 73

Changes in Net Position

74 -75

Fund Balances of Governmental Funds

76 -77

Changes in Fund Balances of Governmental Funds

78 - 79

Schedule of Assessed Value and Estimated Actual Value of Taxable Property

80 - 81

Schedule of Assessed Valuations, Tax Rates, Extensions and Collections

82 - 83

Property Tax Rates - Direct and Overlapping Governments

84 - 85

Principal Property Taxpayers

86 - 87

Outstanding Debt by Type

88 - 89

Ratios of General Obligation Debt Outstanding

Direct and Overlapping General Obligation Debt

Legal Debt Margin Information

92 - 93

Demographic and Economic Statistics

94 - 95

Principal Employers

96 - 97

Full-time Equivalent District Employees by Type

98 - 99

Operating Indicators by Function

100 - 101

INTRODUCTORY

SECTION

ORLAND FIRE PROTECTION DIS11UCT Administration Center 9790 West 151st Street â€˘ Orland Park, IL 60462 ISO Class 2

708/349-0074 â€˘ Fax 708/349-0354 www.orlandfire.org

Board of1rustees: President Christopher E1Ioy Secretary Blair Rhode

TreasurerJayne Schirmacher Trustee John Brudnak Pres. Pro Tem Trustee James Hickey Fire Chief Michael Schofield

June 23, 2016 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, 2015. The CAFR includes a complete set of financial statements presented in conformance with United States generally accepted accounting principles. The financial statements are audited by MPSICP A, 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, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the District's financial statements for the year ended December 31, 2015 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, for the year ending December 31,2015. The entity-wide statements reflect, for the first time, the total actuarial pension obligation ofthe 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, 2015 was $15,248,844, the Firefighter's Pension Fund had year-end net position of $131 ,400,063 and the District has set aside $7,828,050 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.

Financial Planning and Budgeting During the past few years, many governmental entities have been facing significant financial distress as the cost of providing services has outstripped available revenue sources. The cost of employer-provided benefits to both current and former employees is projected to continue to rise due to anticipated increases in health insurance costs as well as decreased investment returns on invested assets. The District has followed a consistent policy of maintaining strong fund balances in all funds as well as funding retirement and post-retirement benefit obligations well in excess of the annual minimum required amounts. The result of these actions has allowed the District to lessen the future burden of these obligations as well as continue to provide a high level of service during these unsettled times. The annual budget serves as the District's foundation for financial planning and control. All programs of the District are required to submit their budget requests to the Fire Chief before July 31 st of each year. After reviewing the budget requests, the Fire Chief presents a proposed budget to the Board of Trustees, who then hold public meetings to discuss the proposed budget. The tentative budget is made available to the public. The Board of Trustees is required to hold a public hearing on the proposed budget and to adopt the final budget no later than December 31 st of each year. The budget is prepared by fund, 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 62 and 64. 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 33 square miles and has a population of approximately 75,000. The number of households within the District is approximately 25,000. The daytime population is higher due to the heavy retail concentration of Orland Park and Orland Hills. The area is easily accessible by O'Hare and Midway Airports, several interstate highways and Metra's commuter rail system. The District has a diverse composition and economic base. Approximately 68% of the District's equalized assessed valuation (EA V) is related to residential development, 31 % is related to commercial development and 1% is related to industrial development. The 2014 tax year EA V iii

was $2,190,698,277. In the 2013 tax year, the District's EAV was $2,248,218,202. This 2.6% decrease is due, in large part, to the equalization factor issued by the Illinois Department of Revenue being reduced by 2.4%. The EAV decrease caused the District's tax rate to increase. Major employers within the District include Orland School District #135, the Village of Orland Park, Jewel/Osco Food Store, Carson Pirie Scott, J.C. Penney, 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 2015 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 2015, District firefighters and paramedics responded to 9,263 calls, a 1.6% increase over 2014. Approximately 58.4% of these calls were for emergency medical services. The number of emergency medical service calls increased by 223 calls, or 4.1 % over 2014. Call volume to local assisted living facilities and rental units continued to increase in 2015. 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 ofprojects during 2015. A number of significant projects are discussed more thoroughly below. •

In March, 20}5, nine firefighters were hired to replace positions open due to attrition.

•

During 2015, the labor agreement between Orland Professional Firefighters Local 2754 and the District, was agreed upon and will continue through December 31, 2017.

•

The original kitchen, day room and offices constructed in 1986 at Station 3 were remodeled.

•

A new set of portable heavy-duty vehicles lifts were installed at the Fleet Maintenance Facility.

Major Initiatives for the Future Major initiatives for 2016 include maintaining adequate firefighter staffing levels to meet response benchmarks, continued focus on training and safety and operational efficiencies. Capital plans for apparatus, building improvements, information technology and communications are being reviewed.

Acknowledgements

and Awards

The District currently holds an Insurance Service Office (ISO) Class 2 rating. The District is one of only a small number of fire departments in the nation to enjoy a rating of ISO 2 or better. This acknowledgement of the District's accomplishments ranks within the top of all related fire departments in the nation. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orland Fire Protection District for its comprehensive Annual Financial Report (CAFR) for the previous seven 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 MPSICPA, 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,

~ÂŁ

Fire Chief

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

,..

Presented to

Orland Fire Protection District Illinois I'

For its Comprehensive Annual Financial Report for the Fiscal Year Ended

December 31, 2014

Executive Director/CEO

[

I Dispatch Director

I Fire Prevent. Inspector

[Fleet Maint. Techniciansj

, Fire Prevention Officer

r Tellecommunicators

[

, Pub. Ed. Coordinator

Admin. & Op. Battalion Chief

Fire Chief/Chief Administrator

, Building Maint. Tech.'

& Fleet Officer

I I

IT Technician

Finance Assistant

Finance Dir.

Finance Director

I Assistant

I I

IGrounds

Receptionist

PR Representative

-1

Board of Trustees

Residents

EMS Officer

Organizational Chart

Battalion Chiefs

FF/Paramedics

Engineers

Executive Assistant

Lieutenants

IStation

Training Officer

HR Assistant

HR Director

Board of Fire Commissioners

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NAMES AND TITLES OF PRINCIPAL OFFICIALS DECEMBER 31, 2015

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

VIII

FINANCIAL SECTION

Certified Public Accountants & Trusted Advisors

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

INDEPENDENT

AUDITOR'S

REPORT

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Orland Fire Protection District, Illinois, as of and for the year ended December 31, 2015, 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, 2015, as displayed in the District's basic financial statements. Management's

Responsibility for the Financial Statements

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

P: 708-349-69991 F: 708-349-6639114300

RaviniaAve., Orland Park, IL 604621 mpscpa.com

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, 2015, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund and the major special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting

Principle

As described in Note II to the basic financial statements, Orland Fire Protection District, Illinois changed its method of accounting and financial reporting for pensions as required by the provisions of GASB Statement No. 68. Our opinion is not modified with respect to that matter.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages xii through xxi and employee retirement and post-employment benefit plan information on pages 43 through 48 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 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, 2014, 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, 2014 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 2014 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 2014 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 23, 2016

MANAGEMENT'S

DISCUSSION

AND ANALYSIS

MANAGEMENT'S DISCUSSION AND ANALYSIS as of and for the fiscal year ended December 31, 2015

As management of Orland Fire Protection District (the District), we offer readers of the District's Comprehensive Annual Financial Report this narrative and analysis of the financial activities of the District for the fiscal year ended December 31, 2015. Financial Highlights •

During the year ended December 31, 2015, the District was required to implement GASB Statement No. 68, Accounting and Financial Reporting jor Pensions - an Amendment oj GASB Statement No. 27, which resulted in the restatement of beginning net position in the governmentwide financial statements. It is impracticable to determine the effects of implementing GASB 68 on the government-wide financial statements for the year ended December 31, 2014. Consequently, the management's discussion and analysis of the government-wide financial statements only covers the government-wide financial statements for the year ended December 31,2015.

•

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 $2,112,040 (net deficit). Of this amount, $15,620,884 is invested in capital assets and $2,415,372 is restricted for various purposes and, therefore, is not available for funding general activities. The District has an unrestricted deficit of $20, 148,296 at December 31, 2015.

•

The total net position of the District decreased by $1,296,560 during fiscal year 2015 due to the reporting of the new pension standards, requiring the District to report additional pension expenses of$I,335,758.

•

As of December 31, 2015, the District's governmental funds reported combined ending fund balances of $15,248,844. Approximately 37% of this amount ($5,565,198) is available for spending at the District's discretion (unassigned fund balance).

•

For the fiscal year ending December 31,2015, total governmental funds expenditures and other financing uses exceeded revenues and other financing sources by $189,252.

•

The combined change in fund balance for the General Fund and the Ambulance Fund increased fund balance by $277,943.

•

At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned and unassigned components ofjund balance) for the General Fund was $6,020,388, or approximately 32% of total General Fund expenditures. Unrestricted fund balance for the Ambulance Fund was $4,697,051, or approximately 44% of Ambulance Fund expenditures. Combined fund balance of the General and Ambulance Funds represent approximately 37% of expenditures.

•

At December 31,2015, the Firefighters Pension Fund had a net position of $131,400,063 with a funding ratio of 92.75%. Pension benefits paid in 2015 were $3,766,976. IMRF had a funding ratio of 89.17%.

XlI

â€˘

The District's Retiree Health Trust Fund had a net position of $7,828,050 as of December 31, 2015. Benefits paid from the Retiree Health Trust Fund were $761,916 in 2015.

â€˘

The District's long-term liabilities at December 31,2015 totaled $41,849,865. Of the long-term liabilities, 60% is related to debt certificates which were issued in 2012 to fund the actuarial unfunded liabilities of the pension funds, 26% is related to net pension liabilities, 9% is related to post employment benefits and compensated absences, and 3% is related to Series 2007 Bonds.

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 it is useful to compare the information presented for for governmental activities in the government-wide understand the long-term impact of the government's

than that of the government-wide financial statements, governmental funds with similar information presented financial statements. By doing so, readers may better near-term financing decisions. Both the governmental

xiii

fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains six individual governmental funds and subfunds. Information is presented separately for the major governmental funds in the Balance Sheet - Governmental Funds and in the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds. The General Fund, Ambulance Fund and the Capital Projects Fund are considered major funds. There is one nonmajor governmental fund. The District adopts an annual appropriated budget for its 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 of 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 used for fiduciary funds is on the full accrual basis. The fiduciary funds utilized by the District are the Firefighters' Insurance Fund.

Pension Fund and the Retiree Health

The basic fiduciary fund financial statements can be found on pages 11 - 12 of this report.

Notes to Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages 13 - 42 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 43 - 48 of the report. The combining and individual fund financial statements and schedules in connection with the major, nonmajor governmental and fiduciary funds are presented immediately following the required supplemental information on pensions and OPEB. These statements and schedules can be found on pages 49 - 71 of this report.

Government-wide Financial Analysis Statement of Net Position - Governmental Activities As noted earlier, net position may serve over time as a useful indicator of a government's financial position; however, GASB Statement 68 was required to be implemented in 2015 which had a significant impact on net position. Assets exceeded liabilities and deferred inflows of resources by $25,808,524 at December 31, 2014. The change in net position between 2014 and 2015 is due to the implementation ofGASB Statement 68.

XIV

Statement

Orland Fire Protection District of Net Position - Governmental as of December 31, 2015

Assets: Current and other assets Capital assets Total assets

Activities

44,225,340 17,734,778 61,960.118

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

10,654,579

Liabilities: Current liabilities Noncurrent liabilities Total liabilities

990,733 41,849,865 42,840,598

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

28,031,116 3,855,023 31,886.139

Net position: Net investment in capital assets Restricted Unrestricted Total net position (deficit)

15,620,884 2,415,372 (20,148,296) (2, I 12,040)

Assets Cash, investments, receivables and prepaid expenses are current assets. These assets are available to provide resources for the near-term operations of the District. The majority of the current assets are the results of the property tax collection process; the District received 97.92% of the annual property tax assessment for 2014 in 2015. It is expected a similar collection rate will occur for 2015 taxes collected in 2016. 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 $17,734,778 in land, improvements, buildings, apparatus, vehicles and equipment, to provide the services to the District's residents, represents 28.6% of the District's total assets. Defen'ed Outfiol1ls ofResow'ces Deferred outflows of resources related to pensions, which are further explained on pages 24 - 35 of this report (the actuarial effect of changes of assumptions plus the difference between projected and actual earnings on pension investments), was recorded in 2015 in the amount of $10,654,579. Of this total, $9,683,543 is related to the Firefighters' Pension Fund and $971,036 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 2007 General Obligation Bonds, 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 2016. Deferred Inflows ofResoul'ces Unavailable revenue, in the form of assessed 2015 property taxes to be collected after fiscal year 2016, totaled $28,031,116 at year end. Deferred inflows of resources related to pensions, which are further explained on pages 24 - 35 of this report and includes the difference of actuarial expectation and actual experience, was recorded in 2015 in the amount of $3,855,023, which all related to the Firefighters' Pension 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 $2,112,040. Total net position of the District does not include internal balances. Statement

of Activities

The following chart shows the revenue and expenses of the District's activities during 2015. Orland Fire Protection District Statement of Activities for the Year Ended December 31, 2015 Revenues: Program revenues: Charges for services Operating/capital grants and contributions General revenues: Property taxes Personal property replacement taxes Investment income Other income Total revenues

3,576,817 10,006 27,391,827 43,937 26,420 285,166 31,334,173

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

15,789,071 12,633,953 3,028,790 1,178,919 32,630,733

Change in net position

(1,296,560)

Net deficit at beginning of year, as restated

(815,480)

XVI

Net deficit, end of year

(2. J L2.240)

Governmental activities decreased the District's net position by $1,296,560. Key elements contributing to this net change are summarized below.

Reyenue." For the year ending December 31, 2015, total revenue from governmental activities increased by $344,121, or 1.1%. Total program revenues, which include charges for services as well as operating and capital grants, increased by $127,787, or 3.7%. Charges for services increased by $196,693, or 5.8%. The increase in charges for services is related to an increase in ambulance call volume. General revenues, which includes property taxes, personal property replacement taxes, investment income, and other income increased by $207,334, or 0.8%, due mostly to the increase in property taxes received.

Expenses.'

Expenses from governmental activities increased by $2,366,729 (7.8%). The increase was due mainly to the new pension reporting requirements, which reflected additional pension expense of$I,335,758. General government expenses were $222,927 higher than the prior year.

Financial Analysis of the District's Funds As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the District's governmental funds reported combined ending fund balance of $15,248,844, a decrease of $189,252 compared to the prior year. Of the total, $108,434 is considered nonspendable because it has been used for prepaid items. Fourteen percent, or $2,196,924, of the total is restricted due to external limitations on its use. These uses include emergency rescue ($350,162), tort immunity ($1,730,125), and municipal retirement / social security ($116,637). Forty-eight percent, or $7,378,288, has been assigned, meaning there are limitations on its intended use. The assigned uses include general government ($7,873), tort immunity purposes ($178,440), emergency rescue purposes ($268,877), ambulance services ($4,697,051), capital projects ($2,204,741), and debt service ($21,306). The remaining thirty-six percent, or $5,565,198, 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 $5,565,198, while total fund balance of the General Fund was $8,305,616. 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 2015 were $18,696,537. Unassigned fund balance represents 30 percent of these General Fund expenditures, while total fund balance represents 44 percent of that same amount. Budgetary highlights for the General Fund follow.

xvii

Orland Fire Protection District General Fund Budgetary Highlights For the Fiscal Year Ending December 31, 2015

Budget

Actual

Variance with Budget

Percentage of Actual to Budget

Revenues Property taxes Charges for services Other Total

(760585) 52,097 (72,929) (781.417)

96.1% 112.6% 75.7% 96.2%

14,495,676 859,205 1,487,648 309,989 1.570,398 18,722,916

(144,290) 193,464 68,364 42,979

101.0% 81.6% 95.6% 87.8%

160,517

99.1%

1,544,623

923,723

(620,900)

(1.406,000)

$ 19,713,961 413,466 300,629 20,428,056

$ 18,953,376 465,563 227,700 19,646,639

14,351,386 1,052,669 1,556,012 352,968 1,570,398 18,883,433

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

138,623

(620.900)

General Fund revenues in the amount of $19,646,639 were 3.8% under anticipated revenues. Property taxes were 3.9% less than expected because the property tax cap had a greater effect on the General Fund than anticipated. Due to property tax receipts in the General Fund, the District abated property taxes in the Debt Service Fund and transferred funds to the Debt Service Fund to pay costs of the Series 2007 Bonds. Charges for services were 12.6% higher than anticipated because the District began charging for rescue fees in 2015.

Ambulance Fund Ending fund balance of the Ambulance Fund is restricted for the costs of emergency medical services and an allocation of administrative costs. At the end of the current fiscal year, restricted and assigned fund balance of the Ambulance Fund was $4,717,181. Fund balance represents 44% of the Ambulance Fund expenditures. Budgetary highlights for the Ambulance Fund follow.

XVlll

Orland Fire Protection District Ambulance Fund Budgetary Highlights For the Fiscal Year Ending December 31, 2015

Budget

Actual

Variance with Budget

Percentage of Actual to Budget

Revenues Property taxes Charges for services Other Total

7,688,961 3,016,735 130,333 10,836,029

8,438,451 3,111,254 129.249 11,678,954

749,490 94,519 (1,084) 842,925

109,7% 103.1% 99,2% 107,8%

103,2% 90,2% 108,8% 115,9% 102,5%

Expenditures and Encum brances Personnel Commodities Contractual Other Total

Excess of Revenues over Expenditures

8,705,590 967,399 446,398 258,587 10,377,974

8,980,495 872,512 485,567 299,687 10,638.261

(274,905) 94,887 (39,169) (41,100) (260,287)

458,055

1,040,693

582,638

Other Financing Uses (300,000)

Transfers out

Net Change in Fund Balance

158,055

(300,000)

700,693

~$==,,5~82~,g,,63~8

Ambulance Fund revenues in the amount of $11,678,954 were 7,8% greater than anticipated revenues, Property taxes were 9,7% greater than expected because the property tax cap did not affect the Ambulance Fund negatively as anticipated, Charges for services were 3,1 % higher than anticipated due to increased call volume, Ambulance Fund expenditures in the amount of $10,638,261 were 2,5% greater than budgeted,

Capital Assets The District's investment in capital assets for its governmental activities as of December 31, 2015 amounts to $17,734,778, The District's investment in capital assets decreased by $193,041, 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.

XIX

Orland Fire Protection District Capital Assets (net of accumulated depreciation) December 31, 2015

Land Buildings and improvements Apparatus and vehicles Equipment Total capital assets

410,330 12,188,475 4,587,134 548,839

17,734,778

Additional information on the District's capital assets can be found in the notes to financial statements, see pages 23 - 24. Long-term

Liabilities

The District has an outstanding general obligation bond of $1,160,000 at the end of the current fiscal year. The District retained its Aal rating from Moody's Investors Service for general obligation bond issues. In December, 2012, the District issued taxable debt certificates in the amount of $26,715,000 to pay its actuarial unfunded liability of its pension funds. The District received an Aa2 rating from Moody's Investors Service for this specific issue. The District has outstanding general obligation debt certificates of $25,330,000 at the end of the current fiscal year. Annual debt service payments were made as scheduled for the general obligation bond held by the District. No refinancing of debt occurred during 2015. Orland Fire Protection District Long-term Liabilities December 31, 2015

Bonds payable Debt certificates Installment contract Compensated absences Net pension liabilities Other post-employment benefits obligation

1,171,375 25,065,938 942,519 1,377,698 11,021,121 2,272,214

Total long-term liabilities Additional information on the District's long-term liabilities can be found in the notes to financial statements, see pages 36 - 39.

Economic Factors and Next Year's Budget and Rates The District's primary revenue source is property taxes, representing approximately 87.4% of total revenue. The Property Tax Extension Limitation Law allows a taxing district to receive a limited inflationary increase in tax extensions on existing property, plus an additional amount for new construction, and voter-approved rate increases. Budgeted revenue for 2016 is $32,245,115. Property taxes are assumed to increase for existing property by the Consumer Price Index and for new construction property. With Ordinance 2016-2, the District abated a portion of its non-capped property tax levies for tax year 2015. Other sources of budgeted revenue include fees for ambulance service, fees for dispatch services provided to other fire departments, and other miscellaneous sources. Budgeted expenditures for 2016 are $32,100,897. Expenditures include salaries and benefits to maintain staffing levels, facility expenses to operate and maintain existing buildings, maintenance expenses to maintain existing apparatus, debt payments, and other miscellaneous expenditures. The 2016 budget includes maintaining staffing levels, improving information technology and communications, replacing vehicles, and the purchasing of other specialized equipment. Requests for Information This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Office of the Finance Director Orland Fire Protection District 9790 West 151 st Street Orland Park, Illinois 60462

xxi

BASIC FINANCIAL

STATEMENTS

GOVERNMENT-WIDE

FINANCIAL

STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS ST ATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES DECEMBER 31, 2015

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

14,612,756 28,062,953 1,432,313 8,884 108,434 410,330 12,188,475 4,587,134 548.839

Total assets

61.960,118 DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows of resources

related to pensions

10,654.579

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

984,015 6,718 2,170,716 39,679,149

Total liabilities

42,840,598 DEFERRED INFLOWS OF RESOURCES

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

28,031,116 3.855,023

Total deferred inflows of resources

31.886.139

NET POSITION (DEFICIT) Net investment in capital assets Restricted for: Tort immunity Emergency rescue Other purposes Unrestricted deficit Total net position (deficit)

See notes to basic financial

statements.

15,620,884 1,730,125 350,162 335,085 (20.148.296) $

(2.112.040)

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2015

Program Charges for Service

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

Revenues Operating Grants and Contributions

Net (Expense) Revenue and Change in Net Position

15,789,071 12,633,953 3,028,790 1.178.919

438,758 2,920,777 217,282

10,006

$ (15,340,307) (9,713,176) (2,811,508) (1.178,919)

32.630.733

3,576,817

10,006

(29.043.910)

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

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

Total general revenues

27.747.350

Change in net position (deficit)

(1,296,560)

Net position (deficit) at beginning of year, as restated

(815.480)

Net position (deficit) at end of year

See notes to basic financial statements. 2

(2, I 12,040)

FUND FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS BALANCESHEET-GOVERNMENTALFUNDS DECEMBER 31, 2015

General

Capital Projects

Ambulance

Nonmajor Fund

Total Governmental Funds

ASSETS

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

12,585,670 19,430,931 354,859

$ 8,632,022 1,077,454 3,872,549

2,027,086

177,655

28,062,953 1,432,313 4,071,510 8,884 108,434

21,306

8,884 108,434

Total assets

32,488.778

163,637 300,193 248,728 4,071,510

13.582.025

2,204,741

21,306

14,612,756

$ 48,296,850

LIABILITIES

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

DEFERRED

INFLOWS

6,718

163,637 526,297 248,728 4,071,510 6.718

4.784.068

232.822

5,016,890

19,399,094

8.632.022

28,031.116

108,434 2,176,794 455,190 5.565.198

20,130 4,697,051

2,204,741

21,306

8.305,616

4,717.181

2.204,741

21,306

226,104

OF RESOURCES

Unavailable revenue - property taxes

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

32,48!!.778

See notes to basic financial statements, 3

13.582,025

2,204,741

21,306

108,434 2,196,924 7,378,288 5,565,198 15,248,844

48,296,850

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2015

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

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

15,248,844

17,734,778

Long-term liabilities, including bonds payable, are not due and payable in the current year and, therefore, are not reported as liabilities in the funds. Also, governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Long-term liabilities and related accounts at yearend consist of: $

General obligation bonds General obligation debt certificates Installment contract Unamortized amounts: Issuance discount Issuance premium Net pension liabilities Compensated absences Other post-employment benefits obligation

(1,160,000) (25,330,000) (942,519) 264,062 (11,375) (11,020,121) (1,377,698) (2,2 72,214) (41,849,865)

Total 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.

(45,353)

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

10,654,579 ( ,855,023) 6,799,556

Total $

Net position (deficit) of governmental activities

See notes to basic financial statements. 4

(2.1 12,040)

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS ST ATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2015

General Revenues: Property taxes Charges for service Grant proceeds Investment income Personal properly 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

Nonmajor Fund

Total Governmental Funds

15,999 26,561 86.689

2,626 5.954

27.391,827 3,576,817 9,506 26,420 43,937 285.666

19,646,639

11.678.954

8.580

31.334.173

8,904,797 6,722,637 1,498,705

4,802,272 4,430,169 1,412,672

18,953,376 465,563 9,506 7,795 17,376 193.023

8,438,451 3,111,254

13,707,069 11,152,806 2,911,377 108,305 33,096

1,115,000 91.000

1,743,305 1,174,494 403,813 430.561

403,813 430,561

Excess (deficiency) of revenues over expend itures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances

18.696.537

10.645.113

975.775

1.206.000

950.102

1.033.841

(967.195)

( 1.206.000)

500,000

1.206.000

( 1.406.000)

(300.000)

( 1.406.000)

(300.000)

500.000

(455,898)

733,841

(467,195)

8.761.514

Fund balances at beginning of year

See notes to basic financial

Ambulance

520,000 1,050,398

Total expenditures

Fund balances at end of year

Capital Projects

8.305.616

4.717.181

statements. 5

2.204.741

( 189.252)

1,706,000 ( 1.706.000)

( 189,252)

2.671.936

3.983.340

31.523.425

15.438.096

21.306 $

21.306

15.248.844

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2015

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

Net change in fund balances - total governmental funds 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 ($957,650) exceeded capitalized capital outlays ($764,609) in the current period.

(J 89,252)

(J 93,041)

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

1,743,305

Governmental funds report the effect of premiums, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The net effect of these differences in the treatment of long-term debt and related items is summarized as follows: Amortization of issuance premium Amortization of issuance discount

8,858 (15.488)

Total

(6,630)

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 decrease in the accrued interest balance from the previous year results in a decrease in interest expense reported in the statement of activities.

2,205

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.

(2,368)

An increase in the other post-employment in the statement of net position.

benefits obligation increases long-term liabilities (J ,315,020)

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 pension benefits earned exceeded District pension contributions in the current period. Change in net position (deficit) of governmental activities

See notes to basic financial statements. 6

(1,335,759) $(

1.296.560)

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS ST ATE ME NT OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND MAJOR SPECIAL REVENUE FUND YEAR ENDED DECEMBER 31,2015

General Fund Original and Final Budget Revenues: Property taxes Charges for service Grant proceeds Investment income Personal property replacement Other

15,819 22,938 2.61.872

taxes

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

See notes to basic financial

statements,

18,953,376 465,563 9,506 7,795 17,376 193,023

(760,585) 52,097 9,506 (8,024) (5,562) (68.849) (781,417)

8,958,601 196,744 192,116 1,710,852 3,293,073

9,343,507 191,216 50,907 1,616,973 3,293,073

(384,906) 5,528 141,209 93,879

73,164 439,198 6,664 90,946 378,891 17,006 46,800

47,917 444,709 2,624 74,941 213,772 28,469 46,773

1,196,767 359,245 352,968

1,131,280 356,368 309,989

ooo

I,(}50,398

520,000 1,050,398

18,883,433

18,722,916

520

and encumbrances

19. 46.639

20,428,056

Total revenues

Total expenditures

19,713,961 413,466

Variance with Final Budget

Actual

25,247 (5,511 ) 4,040 16,005 165,119 (11,463) 27

65,487 2,877 42,979

160,517

Page 1 of2

Ambulance Original and Final Budget

7,688,961 3,016,735

Fund Variance with Final Budget

Actual

8,438,451 3,111,254

749,490 94,519 (8,182) (8,50 I) 15.599

24,181 35,062 71,090

15,999 26,561 86.689

10.836.029

11.678.954

842.925

6,818,295 237,462 59,575 1,590,258

7,178,681 260,575 28,749 1,512,490

(360,386) (23,113) 30,826 77,768

111,837 217,993 12,090 69,155 460,130 25,994 70,200

70,764 223,846 4,761 56,845 413,957 32,181 70,158

41,073 (5,853) 7,329 12,310 46,173 (6,187) 42

130,000

106,033

23,967

316,398 258,587

379,534 299,687

(63,136) (41,100)

10.377.974

10.638.261

(260.287)

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS ST ATEMENT OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND MAJOR SPECIAL REVENUE FUND YEAR ENDED DECEMBER 31,2015

General Fund Original and Final Budget

923,723

1,544,623

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

Variance with Final Budget

Actual

( 1.406.000)

138,623

(482,277)

(620,900)

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

8.728.216

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

8,866,839

8,245,939

(620,900)

59.677

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

Fund balances at end of year (GAAP basis)

See notes to basic financial statements. 9

8.866.839

8.305.616

(561.223)

Page 2 of2

Ambulance Fund Original and Final Budget

Variance with Final Budget

Actual

458,055

1,040,693

(300.000)

158,055

740,693

3,961.574

3.961.574

4,119,629

4,702,267

582,638

14.914

14,914

4.119.629

4.717.181

582,638

597,552

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION - FIDUCIARY FUNDS DECEMBER 31, 2015

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

4,586,228 250,117

15,840,271 2,449,729 598,478 7,975,345 13,746,666 68,857,709 1,747,502 23,205,705 14,619

Total assets

139.272.369

LIABILITIES Accounts payable Due to other funds

35,372 8,884

Total liabilities

44.256

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

131,400,063 7.828.050

Total net position

$ 139,228,113

See notes to basic financial statements. 11

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF CHANGES IN NET POSITION - FIDUCIARY YEAR ENDED DECEMBER 31,2015

Add itions: Contributions: Employer Plan members

FUNDS

3,293,073 1.150,791

Total contributions

4,443,864

Investment income Less investment expense

1,089,452 (251,984)

Net investment income

837,468

Total additions

5281,332

Deductions: Benefit payments Administrative expenses

4,528,892 84,706

Total deductions

4,613,598

Increase in net position

667,734

Net position at beginning of year

'138,560,3 79

Net position at end of year

$ 1 9,228,113

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 31,2015

SUMMARY

OF SIGNIFICANT

Description

of Government-wide

ACCOUNTING Financial

POLICIES

Statements

The government-wide financial statements (i.e., the statement of net positron 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 Plan ("RHIP"). The District's sworn firefighters participate in the FPF. FPF functions for the benefit of these employees and is governed by a pension board. The District and the FPF participants are obligated to fund all FPF costs based upon actuarial valuations. The state of Illinois is authorized to establish benefit levels and the District is authorized to approve the actuarial assumptions used in the determination of the contribution levels. Although it is legally separate from the District, the FPF is reported as ifit were part of the primary government because its sole purpose is to provide retirement benefits for the District's sworn firefighters. The FPF is reported as a pension trust fund. The District's sworn firefighters also participate in the RHIP, which provides health insurance coverage for retired employees and their spouse and dependents until they reach age 65. The District funds RHIP costs based upon actuarial valuations. The RHIP is reported as if it were part of the primary government because its sole purpose is to provide health insurance benefits for the District's sworn firefighters. The RHIP is reported as a trust fund. 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 statements. 13

financial

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Basis of Presentation

- Fund Financial

Statements

The fund financial statements provide information 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 of administration

Fund accounts for the direct costs of emergency medical services and an allocation costs funded by a tax levy restricted for that purpose and charges for service.

The Capital Projects Fund accounts construction of capital improvements. The District

reports the following

The Debt Service Fund accounts Additionally,

the District

The Firefighters' fund.

nonmajor

for the repayment

Fund accumulates

Insurance

Fund

resources

governmental

reports the following

Pension

The Retiree Health District's retirees.

for financial

accumulated

bonded debt.

funds:

resources

accumulates

fund:

of the District's

fiduciary

for the acquisition

for the benefit of the members

resources

for health

insurance

of the pension

benefits

for the

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 el im inations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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 basis 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.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

The District statements:

follows these procedures

IJl

establishing

the budgetary data reflected

III

the financial

I. 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, 2015 was adopted through the passage of ord inance number 2014-04 on November 18, 2014, and was subsequently amended through the passage of ordinance number 2016-01 on January 26,2016. 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) item of appropriation. Appropriations lapse at the end of the fiscal year.

is the line

6. Budgeted expenditures represent working budget amounts. The appropriation as adopted for each fund is as follows: General Fund: Corporate Subfund Tort Liability Subfund Emergency Rescue Subfund Ambulance Fund Capital Projects Fund Debt Service Fund

17,378,204 3,621,309 1,145,015 12,266,653 1,316,500 1,386,900

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. Outstand ing encumbrances at the end of the year are reported in fund balance as restricted, committed or assigned and do not constitute expenditures or Iiabil ities because the commitments will be reappropriated and honored during the subsequent year. Encumbrances outstanding at December 31,2015 totaled $568,899. The following funds had an excess of actual expenditures/encumbrances for the year ended December 31, 2015: Budget

Fund

General subfund: Emergency Rescue Fund Ambulance Fund

973,602 10,377,974 16

over the working budget amount

Actual

1,035,642 10,638,261

Variance

62,040 260,287

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

The overexpenditures anticipated revenues.

in the Emergency Rescue Fund and Ambulance Fund were funded by greater than

Assets, Liabilities, Deferred Outflows/Inflows

Cash and Cash Equivalents

of Resources, and Net Position/Fund

Balance

The District's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. 2.

Investments

Investments are reported at fair value, generally based on quoted market prices. Short-term investments are reported at cost, which approximates fair value. 3.

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. 4.

Capital Assets

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

using the straight-line

Years Buildings and improvements Apparatus Vehicles Equipment

50 10-20 5 10

method over the

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Deferred Outflows/Inflows of Resources

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.D.] 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 of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) unti I that time. The District has two types of items that qual ify for reporting in th is category. One item, unavailable revenue, is reported in the government-wide statement of net position and the governmental funds balance sheet. The District reports unavai lable 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 Note II.D.I for further discussion of deferred inflows of resources related to pensions). 6.

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. 7.

Net Position Flow Assumption

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

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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, comm itted, 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. 9.

Fund Balance Policies

Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the District's highest level of decision-making authority. The Board of Trustees is the highest level of decision-making authority for the District that can, by adoption of an ordinance prior to the end ofthe fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as committed. 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

Program Revenues

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

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2015

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 bi lIing (mai led on or about August I) 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 pol icy 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 and liabilities, 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 schedu les in order to provide an understanding of the changes in the financial position and operations ofthe various funds of the District.

II.

DETAILED NOTES ON ALL ACTIVITIES AND FUNDS

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, 2015, $1,238,194 of the District's bank balances of $19,241,100 was uninsured and collateralized with securities held by the pledging financial institutions. As of December 31, 2015, bank balances of the Firefighters' Pension Fund and the Retiree Health Insurance Fund were fully insured.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Investments As of December 31, 2015, the Firefighters' Pension Fund and the Retiree Health Insurance Fund had the following investments: Weighted Average Average Credit Years to Type of Investment Qualitv Ratings (1) Fair Value Maturity (2) Firefighters' Pension Fund: Debt issues: Corporate* Foreign* Municipal* Equities Insurance contracts Mutual funds U.S. government agency obligations* U.S. Treasury notes* Total Retiree Health Insurance Fund: Debt issues: Corporate Mutual funds U.S. government agency obligations Total

15,091,034 2,449,729 598,478 7,975,345 13,746,666 62,218,332

AAA - BBBAA- - BBB-

1,394,902 23.205.705

AAA-AAI

IAAA IAAA

- BAA3 - BAA3 AAA-AAI

N/A N/A N/A

5.22 3.99 14.40

N/A N/A N/A

IAAA AAAIAAA

10.l3 4.l0

AAA-BAAI

11.06

AA+ - AA-

$ 126.680.19 J

749,237 6,639,377 352.600

N/A

AAA

5.13

7.741,214

(1) Ratings are provided where applicable to indicate associated Credit Risk. (2) Interest Rate Risk is estimated using weighted average years to maturity.

N/A

indicates not applicable.

* - 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. 21

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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, 10% of the total outstanding paper of the issuing corporation or one-third of the cost of the portfolio. Concentration of credit risk is the risk of loss attributed to the magnitude of the District's investment in a single issuer. The District, with the exception of U.S. Treasury securities and authorized pools, provides that no more than 50% of the District's portfolio will be invested in a single security type or in a single financial institution. Custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District's investment policy requires the amount of collateral provided to be at a minimum of 110% of the fair value of the principal and accrued interest. Firefighters' Pension Fund and Retiree Health Insurance Fund The Firefighters' Pension Fund and Retiree Health Insurance Fund's investments are subject to the same risks as noted above and are addressed in the investment policies as follows: Interest rate risk - an investment time horizon of average duration which is not to vary more than +/30% of the duration of the Lehman Brothers Intermediate Government Bond Index, thereby allowing the fund to tolerate moderate interim fluctuations in market value and rates in order to ach ieve 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 511- I 13) 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 (lLCS) 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.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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.

Receivables

The allowance for uncollectible collection experience.

ambulance

accounts

receivable

of $190,000

on previous

based

Capital Assets

Capital

asset activity

for the year ended December

31, 2015 was as follows:

Beginning Balance Governmental activities: Capital assets, not being depreciated: L~d Capital assets, being depreciated: Buildings and improvements Apparatus and vehicles Equipment

410.330

Decreases / Ad i 1I '("ments

Increases

"'-$

Ending Balance

410.330

16,139,812 10,467,877 2.373,987

228,405 227,410 308,794

16,368,217 10,695,287 2,682,781

Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Apparatus and vehicles Equipment

28,981,676

764,609

29,746.285

3,852,378 5,534,893 2,076,916

327,364 573,260 57,026

4,179,742 6,108,153 2,133,942

Total accumulated

11.464,187

957,650

12.421,837

17.517.489

(193,041)

17.324.448

depreciation

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

activities

capital

$ 17,927.819

(193,041)

=$====

$ 17,734,778

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2015

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

Pension and Post-Employment

as follows:

494,227 346,010 117,413

957,650

Benefit Obligations

The District maintains the Firefighters' Pension Fund, 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, 2015. 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 151st 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 one-half 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 ten 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.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2015

Tier 2 employees (those hired on or after January], 20] 1) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighter's salary for pension purposes is capped at $106,800, plus the lesser of 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 ten years of service may retire at or after age 50 and receive a reduced benefit (i.e., 112% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. 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. Employees Covered by Benefit Terms. At December 31,2015, consisted of the following:

the Firefighters' Pension Plan's membership

Active employees Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not receiving benefits Total

117 58 I 176

Number of participating employers Contributions. Employees are required by Illinois Compiled Statutes (lLCS) 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 unti I the year 2040 to fund 90% the past service cost for the Firefighters' Pension Plan. For the year ended December 31, 2015, the District's contribution was 26.82% of covered payroll. Net Pension Liability. The District's net pension liability was measured as of December 31,2015. 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%

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2015

Investment rate of return - 7.0%, compounded annually, net of pension plan investment expense, including inflation Asset valuation method - Market Mortality rates for active employees and pensioners were based on the L&A 2016 Illinois Firefighters Mortality Rates. The L&A 2016 Illinois Firefighters Disability Rates were used for disabled firefighters. The actuarial assumptions used in the December 31,2015 valuation were based on the results of an actuarial experience study for the period January 1, 2015 - December 31, 2015. 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, 20] 5 (see the discussion of the Firefighters' Pension Plan's investment policy) are summarized in the following table:

Portfolio Target Allocation

Asset Class Domestic equity Fixed income International equity Real estate Global tactical

40 % 35 15

7 3

Long-Term Expected Real Rate of Return 6.0 % l.5 6.3 5.9 4.]

]00 % 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.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Changes in the Net Pension Liability. Changes in the District's net pension liability for the year ended December 31,2015 were as follows: Increase (Decrease) Plan Fiduciary Net Position (b)

Total Pension Liability (a) Balances at December 31,2014 Changes for the year: Service cost Interest Differences between expected and actual experience Changes in assumptions Net investment income Contributions - employees Contributions - employer Benefit payments, including refunds of employee contributions Administrative expense

$ 133,535,361

129,996,961

Net Pension Liability (a) - (b) $

3,587,191 9,215,633

(4,397,221) 3,493,608

(4,397,221) 3,493,608 (810,920) (1,150,791) (3,293,073)

810,920 1,150,791 3,293,073 (3,766,976)

Balances at December 31,2015

(3,766,976) (84.706)

8,132,235

1.403,102

$ 141.667 ,596

$ 131.400.063

Net changes

3,538.400

84,706 6,729,133 $

10,267,533

The change in assumptions amount of $3,493,608 was primarily the result of changes in demographic assumptions based on a study of firefighters and fire pension funds in Illinois.

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% Decrease (6.0%) District's net pension liability (asset)

32,752,102

Current Discount Rate (7.0%) $

10,267,533

1% Increase (8.0%) $

(7,941.290)

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.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31,2015

Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. For the year ended December 3], 20]5, the District recognized pension expense of $4,]93,685. At December 3], 20 ]5, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of

Deferred Inflows of Resources

Resour es

Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on Plan investments

3,855,023

3.855.023

3062,830 6,620,713

Total

9,683,543

Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense in years ending December 3] as follows:

20]6 20]7 2018 20]9 2020 Thereafter

Total

$ 5.828,520 ~===========~

],543,759 ],543,759 ],543,759 ],543,756 (111,420) (235,093)

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 multi-employer 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. Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff's Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 20]] (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.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

The RP has two tiers. Employees hired before January 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement. Employees hired on or after January 1,2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of: â€˘

3% of the original

pension

â€˘

1/2 of the increase

in the Consumer

amount,

or Price Index of the original

Employees Covered by Benefit Terms. As of December

pension

31, 2015, the following

amount. employees

were covered

the benefit terms: Active Plan members Retirees and beneficiaries currently receiving benefits Inactive Plan members entitled to but not yet receiving Total

9 benefits

11 45

Contributions. As set by statute, the District's RP 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 2015 was 7.96%. 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. Net Pension Liability. total pension of that date.

liability

The District's used to calculate

net pension liability was measured as of December 31, 2015. The the net pension liability was determined by an actuarial valuation as

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Actuarial Assumptions. The following Iiabi Iity at December 31, 2015: •

The Actuarial

Cost Method

•

The Asset Valuation

•

The Inflation

•

Salary Increases

•

The Investment

•

Projected

are the methods

Rate was assumed

to be 3.5%.

were expected

to be 3.75% to 14.50%,

Rate of Return was assumed

The IMRF-specific 2014 Blue Collar expenence.

•

For Disabled projection

Annuitant

Retirees,

For Active projection RP-2014

•

Members,

table

was

(base year 2014). The IMRF-specific Mortality

Mortality

The long-term

expected method

Table,

applying

mortality

returns,

by weighting

rate of return

net of pension These

plan investment future

inflation.

real rates

expense,

fully

IMRF

generational from the

that were applied

with

fully

generational

rates were developed

from the

was determined future

of return

are developed

the long-term

expected

to the target

asset

and best estimates in the following

table:

Long-Term Expected Real Rate of Return

I 100 %

using a

real rates of return

and inflation)

to produce

38 % 27 17 9 8

used

of expected

Portfolio Target Percentage

Total

used with

plan investments

real rates of return for each major asset class are summarized

Domestic equity Fixed income International eq u ity Alternative investments Real estate Cash equivalents

from the RP-

to match current

rates were developed

was

The target allocation

Asset Class

were developed

study

to match current IMRF experience.

ranges

ranges are combined

the expected

and adding expected

on pension

best-estimate

to the type

to an experience

the same adjustments table

Table with adjustments

in which

each major asset class. percentage

retirees)

with adjustments

mortality

an IMRF-specific

building-block

return

Table

according

scale MP-20 14 (base year 2014). The IMRF -specific Employee

(expected

Table of Rates, specific

(for non-disabled Mortality

an IMRF-specific

scale MP-2014

inflation.

to be 7.50%.

for the 2014 valuation

rates for Mortality

RP-20 14 Disabled Retirees for non-disabled lives. •

including

Age was from the Experience-based

Health

total pension

used was Market Value of Assets.

of eligibi Iity condition, last updated from years 2011 to 2013. •

used to determine

used was Entry Age Normal.

Method

Retirement

and assumptions

7.39 % 3.00 7.59 2.75-8.15 6.00 2.25

for

rate of

allocation

of geometric

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Single Discount Rate. A Single Discount Rate of 7.50% was used to measure the total pension liability. The projection of cash flow used to determine this Single Discount Rate assumed that the plan members' contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects: 1.

The long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and

The tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met).

For the purpose of the most recent valuation, the expected rate of return on plan investments is 7.50%, the municipal bond rate is 3.57%, and the resulting single discount rate is 7.49%. Changes in the Net Pension Liability. Changes in the District's net pension liability for the year ended December 31, 2015 were as follows: J ncrease (Decrease)

Total Pension Liability (a) Balances at Decem ber 31, 2014 Changes for the year: Service cost Interest 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

(146,636) 224,261 464,765

241,876 10,077 31,812 95,2]7 166,856

241,876 ]0,077 (3],812) (95,2] 7) (] 66,856)

(155,769) (252,130)

252,]30

(114,014)

899.224

785,210 $

6,309,255

Net Pension Liability (a) - (b)

224,26] 464,765

(] 55,769)

Net changes Balances at December 31, 2015

6,J62,

Plan Fiduciary Net Position (b)

6.947.829

6,195,24]

752,588

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension Iiabil ity of the District calculated using the discount rate of 7.49%, as well as what the net pension Iiabil ity (asset) would be if it were calculated using a discount rate that is I-percentage-point lower (6.49%) or l-percentage-point higher (8.49%) than the current rate: Current Discount Rate (7.49%)

1% Decrease (6.49%)

District's net pension liability

1,849.344

752,588

I% Increase (8.49%) $

( 138,8

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 31,2015, the District recognized pension expense of $602,002. At December 31, 2015, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on Plan investments

413,128 158,909

Deferred Inflows of Resources $

398,999

Total

971,036

Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense in years ending December 31 as follows: 2016 2017 2018 2019 2020 Thereafter

223,789 223,789 223,789 207,032 77,972 14,665

Total

971,036

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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, pension expense/expenditures are summarized as follows:

liabilities,

deferred

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

Retiree

Health

Insurance

9,683,543 10,267,533 3,855,023 4,193,685 3,293,073

inflows

of resources,

IMRF $

971 ,036 752,588 602,002 166,856

and

Total $

10,654,579 11,020,121 3,855,023 4,795,687 3,459,929

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 151 st Street, Orland Park, Illinois, 60462.

Funding Policy. The contribution

requirements are established by the District, using an actuarial study that is based on projected pay-as-you-go financing. For fiscal year 2015, the District contributed $0 to the plan. Plan members receiving benefits contributed $0. At December 31, 2015, $7,828,050 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: 33

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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

$ contribution

Annual OPEB cost Contributions made

1,315,020

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

1,313,054 17,158 (] 5.192)

1,315,020 957,194

of year

at end of year

2,272,214

The District's annual OPEB cost, the percentage of annual OPEB cost contributed OPEB liability (asset) for the three most recent years were as follows:

Fiscal Year Ended 12/3111 5 12/31/14 12/31/13

Annual OPEB Cost

Percentage of Annual OPEB Cost Contributed

1,315,020 1,249,736 1,250,200

0.00 % 0.00 98.78

to the plan, and the net

NetOPEB Liability (Asset)

2,272,214 957,194 (292,542)

Funded Status and Funding Progress. As of December

31, 2014, the most recent actuarial valuation date, the plan was 36% funded. The actuarial accrued liability for benefits was $22,721,458, and the actuarial value of assets was $8,563,418, resulting in an unfunded actuarial accrued liability (UAAL) of $14,158,040. The covered payroll (annual payroll of active employees covered by the plan) was $17,102,343, and the ratio of the UAAL to the covered payroll was 83%. 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, mortal ity, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the plan.

Actuarial Methods and Assumptions.

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

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

In the December 31, 2014 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), a 3.00% inflation rate, and an annual healthcare cost trend rate of 7.00% initially, reduced by decrements to an ultimate rate of 5.00% after four years. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2014 was 30 years. E.

Interfund Receivables and Payables

Individual interfund receivable and payable balances at December 31, 2015 were as follows: Receivable Fund Ambulance Fund Capital Projects Fund Nonmajor governmental fund

Payable Fund General Fund General Fund General Fund

Total

Amount $

3,872,549 177,655 21,306

4.071.510

The outstanding balances between funds result mainly from the time lag between the dates that monies are received by the individual funds and the expenditure of funds. The repayment of the balances is expected to be funded by transfers from other funds. F.

Interfund Transfers Transfer in Capital Projects Fund Capital Projects Fund Nonmajor governmental fund

Transfer out General Fund Ambulance Fund General Fund

Total

Amount $

200,000 300,000 1.206.000

1.706,000

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

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Long-term Liabilities

Long-term Iiabil ity activity for the year ended December 31, 2015 was as follows: Beginning Balance Bonds payable: General obligation bonds Issuance premium Debt certificates: General obligation debt certificates Issuance discount Installment contract payable Compensated absences Net pension liabilities: Firefighters' Pension Fund Illinois Municipal Retirement Fund Other post-employment benefits obligation Total

2,275,000 20,233

25,850,000 (279,550) 1,050,824 1,375,330

270,729

3,538,400 (146,636)

4,193,685 602,002

957,194

1.315,020

34,640.795

Reductions/ Adjustments

Additions

6.381.436

(1,115,000) (8,858)

Ending Balance

1,160,000 11,375

(520,000) 15,488 (108,305) (268,361 )

Due Within One Year

25,330,000 (264,062) 942,519 1,377,698

2,535,448 297,222

1,160,000

595,000 111,716 304,000

10,267,533 752,588 2.272.214

827.634

41,849,865

2.170.716

The debt service of the general obi igation bonds and debt certificates will be funded by transfers 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 schedule of the long-term debt outstanding at December 31,2015 is as follows: General Obligation Bonds General obligation bonds, which were used to purchase capital assets, are direct obligations and pledge the full faith and credit of the District. Denomination Bonds due each year Interest dates Interest rates Paying agent

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

Total original issue Year Ending December 31, 2016

Principal Due $

Interest Due

I, I 60,000

46,400

Total Due $

1206,400

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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

2016 2017 20]8 20]9 2020 2021 2022 2023 2024 2026 2027 2028 2029 2030 2031 2032

Total

Interest

Total Due

Due

595,000 680,000 765,000 860,000 965,000 ] ,070,000 1,185,000 ] ,305,000 1,430,000 ] ,685,000 1,820,000 1,960,000 2, ]20,000 2,280,000 2,445,000 2.610.000

25,330.000

1,042,078 1,030,773 1,016,153 997,410 973,760 944,328 909,018 867,543 819,910 707,973 640,573 565,043 468,023 363,083 250,223 ] 29.195 ]2,491,37]

1,637,078 1,710,773 1,781,153 1,857,410 1,938,760 2,014,328 2,094,018 2,]72,543 2,249,910 2,392,973 2,460,573 2,525,043 2,588,023 2,643,083 2,695,223 2.739,195 37.821371

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

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

Principal Due

Interest Due

Total Due

2016 2017 2018 2019 2020 2021

111,716 115,235 118,865 122,608 126,470 347.625

29,685 26,166 22,536 18,793 14,931 930

Total

942.519

113.041

141,40 I 141,401 141,401 141,401 141,401 348.555 1,055.560

The annual requ irements to amortize all outstanding debt as of December 31, 2015 are as follows: Year Ending December 31.

Principal Due

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

Total

Interest Due

1,866,716 795,235 883,864 982,608 1,091,470 1,417,626 1,185,000 1,305,000 1,430,000 1,685,000 1,820,000 1,960,000 2,120,000 2,280,000 2,445,000 2.610,000 27,432,519

Total Due

1,118,163 1,056,939 1,038,690 1,016,203 988,692 945,258 909,018 867,543 819,910 707,973 640,573 565,043 468,023 363,083 250,223 129,195

2,984,879 1,852,174 1,922,554 1,998,811 2,080,162 2,362,884 2,094,018 2,172,543 2,249,910 2,392,973 2,460,573 2,525,043 2,588,023 2,643,083 2,695,223 2,739.195

12.650.814

40.083,333

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

The legal debt margin of the District as of December 31,2015 is determined as follows: Assessed val uation - 2014 tax year (most current valuation available)

Statutory debt limitation (5.75% of assessed valuation)

2,190,698,277 125,965,15 ]

Total debt outstanding

27,179,832

Legal debt margin H.

98,785,319

Fund Balances

As of December 31, 2015, fund balances were comprised of the following:

General Fund Nonspendable: Prepaid items Restricted: Emergency rescue Municipal retirement / Social Security Tort immunity Total restricted Assigned: Capital projects Debt service Emergency medical Emergency rescue General government Tort immunity Total assigned Unassigned Total

108,434

Capital Projects Fund

Ambulance Fund

Nonmajor Fund

Total Governmental Funds

350,162

108,434

350,162

96,507 1,730.125

20,130

116,637 1,730,125

2.176.794

20,130

2.196.924 2,204,741 21,306

4,697,051 268,877 7,873 17&,440

4,6c 7,051

455,1 90

2,204,741

21 ,306

5,565.198 $ 8,305,616.

2,204,741 21,306 4,697,051 268,877 7,873 178,440 7,378,288 5,565,198

4.717.1 S 1 $ 2,204,741

21.J06

$ 15,248,844

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Encumbrances

Encumbrance accounting is employed as an extension of formal budgetary integration for the General Fund, Ambulance Fund, and Capital Projects Fund. At December 3], 20] 5, certain amounts which were previously restricted, committed, or assigned for specific purposes have been encumbered in the governmental funds. Significant encumbrances included in governmental fund balances are as follows: Encumbrances Included in: Restricted Assigned Fund Fund Balance Balance General Fund Ambulance Fund Capital Projects Fund Total

59,677 14,914 494,308

568,899

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 entities in the state of Illinois. The District pays annual premiums to the fund for its general insurance coverage. The agreement for formation of the fund provides that it will be self-sustaining through member premiums and will reinsure through commercial companies for losses in excess of various limits established for each type of coverage. The amount of coverage has not decreased nor have the amount of settlements exceeded coverage in the current year or any of the past three years. K.

Tort Immunity

Expenditures

Tort immunity expenditures for the year ended December 31, 2015 are summarized as follows: Property and liability insurance Risk management personnel costs Professional services Other Total L.

1,131,280 1,531,203 111,903 141,910

2,916296

Labor Concentrations

The sworn and certain non-sworn personnel of the District are covered by collective bargaining agreements that expire on December 3 I, 2016. 40

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Contingent Liabilities

The District is an intervenor in approximately 80 appeals before the Property Tax property taxpayers within the District's boundaries. If the District is unsuccessful in valuations of the properties, it would have to refund property taxes based on the value for the period that the taxpayer's challenge is granted through. The outcome the assessed valuations of properties within the District is not presently determinable.

Appeal Board filed by defending the assessed difference in assessed of these challenges to

Change in Accounting Principle

During the year ended December 3], 20] 5, the District implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local governmental employers about financial support for pensions that is provided by other entities. The implementation of GASB 68 resulted in the restatement of beginning net position in the governmentwide financial statements. Under GASB 68, the liability of employers to employees for defined benefit pensions (net pension liability) is required to be measured as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service (total pension liability), less the amount of the pension plan's fiduciary net position. Prior to the issuance of GASB 68, employers reported a pension liability equal to the cumulative difference between the actuarial required contribution, as adjusted, and the actual employer contributions made. The restatement

of beginning

net position

Net position

at December

3],20]

is summarized

4, as previously

as follows:

reported

Change in reporting of: Prior net pension benefit asset: Firefighters' Pension Fund Illinois Municipal Retirement Fund Net pension liability: Firefighters' Pension Fund Illinois Municipal Retirement Fund Deferred outflows of resources related to pensions: Illinois Municipal Retirement Fund

(22,722,557) (1,0]6,641) (3,538,400) ]46,636 506.958

Total Net position

(deficit)

25.808.524

(26.624.004 at December

3],20]

4, as restated

(815.480)

)

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2015

Subsequent Events

Management has evaluated subsequent statements were available to be issued.

events through June 23, 2016, which is the date the financial

REQUIRED SUPPLEMENTARY INFORMATION

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

SCHEDULE

OF CHANGES

IN THE DISTRICT'S

NET PENSION

LIABILITY 20]5

Total pension liability: Service cost Interest Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of member contributions

133.535.361

119.044.890

$ 141.667.596

$ 133.535.361

810,920 (3,766,976) (84.706)

3,386,334 1,214,057 50 7,571,094 (2,571,284) (98.752)

1,403,102

9,501,499

129.996.961

120.495.462

$ 131.400.063

$ 129,996,961

Net change in plan fiduciary net position Plan fiduciary net position at beginning of year Plan fiduciary net position at end of year

3,293,073 1,150,791

10.267533

District's net pension liability at end of year Plan fiduciary net position as a percentage of total pension liability Covered-employee

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

payroll

12,277,252 83.63 %

3,538.400 97.35 %

92.75 %

payroll

4,557,023 8,401,468 2,655,010 1,448,254 (2.571.284) 14,490,471

Total pension liability at beginning of year

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

8,132,235

Net change in total pension liability

Total pension liability at end of year

3,587,]9] 9,215,633 (4,397,221) 3,493,608 (3.766.976)

2014

1L338.333 31.21 %

Notes to Schedule:

Changes in Assumptions. The change in assumptions amount of $3,493,608 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.

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

SCHEDULE OF DlSTRJCT CONTRIBUTIONS 2015 Actuarially determined contribution

Contributions in relation to the actuarially determined contribution Contribution excess Covered-employee

3,293,073

Contributions as a percentage of covered-employee

3,293,073 $

payroll

2014

$ payroll

3,386,334 3,386,334

~$==== 12,277,252 26.82 %

11,338,333 29.87 %

Notes to Schedule: Valuation Date. Actuarially determined contribution rates are calculated as of December 31, 2015. Methods and Assumptions used to Determine Contribution Rates. Actuarial cost method

Entry age normal

Amortization method

Level percentage of payroll

Remaining amortization period

25 years

Asset valuation method

Market value

Inflation

2.5%

Salary increases

4.5% - 32.3%

Investment rate of return

7.0%, compounded annually, net of 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

pension

plan

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

SCHEDULE OF INVESTMENT

RETURNS 2015

Annual money-weighted rate of return, net of investment expense

0.60 %

2014 6.23 %

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 2015 Total pension liability: Service cost Interest Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions

Net change in total pension liability

785,210

Total pension liability at beginning of year

6. J 62.619

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

Net change in plan fiduciary net position

6,947.829

166,856 95,217 31,812 (155,769) (252.130) (114,014)

Plan fiduciary net position at beginning of year

6,309.255

Plan fiduciary net position at end of year District's net pension liability at end of year

6.195.241

752.588

Plan fiduciary net position as a percentage of total pension liability Covered-employee

224,261 464,765 241,876 10,077 (] 55.769)

89.17 %

payroll

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

payroll

2,096,190 35.90 %

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 Contributions in relation to the actuarially determined contribution Contribution excess Covered-employee

payroll

Contributions as a percentage of covered-employee

payroll

Notes to Schedule: 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

28-year closed period

Asset valuation method

5-Year smoothed market; 20% corridor

Wage growth

Price inflation

3%, approximate; no explicit price inflation assumption is used in this valuation.

Salary increases

4.4% to 16.0%, 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 2011 valuation pursuant to an experience study of the period 2008-2010.

Mortality

RP-2000 Combined Healthy Mortality Table, adjusted for mortality improvements to 2020 using projection scale AA. For men, 120% of the table rates were used. For women 92% of the table rates were used. For disable lives, the mortality rates are the rates applicable to non-disabled lives set forward 10 years.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATIONRETIREE HEALTH INSURANCE PLAN DECEMBER 31,2015

SCHEDULE

Actuarial Value of Assets

Actuarial Valuation Date December December December December December

31, 2014 31, 2012 31, 2011 31,2009 31,2007

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

OF FUNDING PROGRESS

Actuarial Accrued Liability

Unfunded Actuarial Accrued Liability (UAAL)

Funded Ratio

Covered Pavroll

UAAL as a Percentage of Covered Payroll

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

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

37.69 36.36 28.30 21.33 0.00

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

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 December December December December December December

Required Contribution 1,313,054 1,234,355 1,234,355 1,291,437 1,390,511 1,358,747

31, 2015 $ 31, 2014 31, 2013 31, 2012 31,2011 31, 201O

Percentage Contributed 0.00 0.00 100.05 105.21 25.80 113.41

COMBINING AND INDIVIDUAL FUND AND FINANCIAL STATEMENTS AND SCHEDULES

MAJOR GOVERNMENTAL FUNDS

GENERAL FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND

BALANCE SHEET ACCOUNTS DECEMBER 31,2015 WITH COMPARATIVE TOTALS FOR DECEMBER 31, 2014

Emergency Rescue

Tort Liability

Corporate

Totals 2015

2014

$ 12,585,670

$ 10,004,378

19,430,931 354,859

19,015,193 417,793 1,745,507 22,668 177,149

Eliminations

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

$ 12,585,670 15,226,003 354,859 8,884 5,972

$ 3,084,100

1,120,828

1,969,727

650,368

(2,620,095) 8,884 108,434

102,462

$ 28.181,388

5.156,289

1.771.196

13,747 17,582

$ (2,620,095)

$ 32,488.778

$ 31,382,688

LIABILITIES Accounts payable Accrued expenditures Unearned revenue Due to other funds Total liabilities

149,890 239,916 248,728 6,691.605

42,695

356,345 286,229

(2;620,095)

163,637 300,193 248,728 4,071,510

(2,620,095)

4,784.068

3,699.291

3,056,717

7,330,139

42,695

31,329

15.194,166

3,084,100

1.120,828

19.399,094

18,921.883

5,972 78,040 7,873 5.565,198

102,462 1,748,592 178,440

350,162 268,877

108,434 2,176,794 455,190 5.565.198

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

5,657.083

2.029,494

619.039

8.305.616

8.761.514

$ 28.181,388

$ 5.156,289

$ 32,488,778

$ 31.382,688

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

FUND BALANCES N onspendab Ie Restricted Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances

1,771.196

(2,620.095)

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2014

Tort Lillbility

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

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

3.070,067 985

Totals 2015

Rescue

25,180

1,650 2,738 5,413

15,491.312

3,096,232

1,059,095

19.64 .639

19.528,741

7,363,395 143,207 32,058 1,503,169 3,293,073

1,255,414 23,830 12,094 239,605

724,698 24,179 7,498 113,804

9,343,507 191,216 51,650 1,856,578 3,293,073

9,906,585 203,858 35,474 1,427,142 3,386,334

71,174

7,296 63,283 5,286 35,528 3,318 7,795

47,917 404,327 2,624 88,201 213,772 28,469 46,773

47,754 387,471 2,648 121,593 268,176 22,638 51,363

39,428 7.381

1,131,280 356,368 70,384

1,027,019 520,132 87,222

520,000 1.050.398

445,000 1.055,960

12,620 13,254

Ll31,280 111,903

205,037 63.003

987,427 61,867

520.000 1.050.398

Excess of revenues over expenditures Other financing uses: Transfers out

1,039.494

18.696,537

18.996.369

705.443

225.058

19,601

950,102

532,372

225.058

5.657.083

19.601 591.),438

1.l:WtlA36

6.357.640 $

18,934,177 368,631 77,662 9,248 17,144 121.879

2.871.174

(700,557)

Fund balances at beginning of year

14.785.869

( 1.406.000)

Net change in fund balances

2014

18,953,376 465,563 9,506 7,795 17,376 193,023

40,621 269,870 2.624 70,295 164.990 25.151 38.978

Total expenditures

Fund balances at end of year

14,895,882 402,711 9,506 6,145 14,638 162,430

Emergency

2.029.494

619.039

( 1.406.000)

(600.000)

(455,898)

(67,628)

8.761.514 $

8.305.616

8.829.142 $

8,761.514

CORPORATE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND BALANCE SHEET DECEMBER 31,2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2014

2015

2014

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

12,585,670

15,226,003 354,859

14,971,395 417,793 1,745,507 22,668 2.781

8,884 5.972

Total assets

10,004,378

28,181,388

27.164.522

149,890 239,916 248,728 6.691,605

356,345 229,194

LIABILITIES Accounts payable Accrued expenditures Unearned revenue Due to other funds Total liabilities

DEFERRED

INFLOWS

5.343,258

7.330.1 39

5.928,797

15.194.166

14.878.085

5,972 78,040 7,873 5.565.198

2,781 60,888 22,764 6.271,207

5.657.083

6.357.640

OF RESOURCES

Unavailable revenue - property taxes

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

28.1 81.388

27.164.522

ORLAND FIRE PROTECTION

DISTRICT, ILLINOIS

CORPORATE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2014

AND

2015 Original and Final Budget

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

15,793,961 347,884 13,326 19,323 191.130

Actual

14,895,882 402,711 9,506 6,145 14,638 162.430

2014 Variance with Final Budget

(898,079) 54,827 9,506 (7,181) (4,685) (28.700)

Actual

14,764,038 310,260 77,662 7,791 14,443 109,332

16,365.624

15.49L312

(874,312)

7,063,547 151,287 116,489 1,591,934 3,293,073

7,363,395 143,207 30,925 1,503,169 3,293,073

(299,848) 8,080 85,564 88,765

7,695,105 156,640 26,645 1,326,907 3,386,334

61,634 275,054 6,664 72,413 297,582 14,326 39,000

40,621 266,845 2,624 59,562 164,990 25,151 38,978

21,013 8,209 4,040 12,851 132,592 (10,825) 22

39,940 186,296 2,648 84,474 197,431 19,070 42,803

166,426 88,811

205,037 63,003

(38,611) 25,808

245,663 76,570

520,000 1.050.398

14.808,638

14.770.978

15283.526

445,000 1.055.960 37,660

14,987.486

2015

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

Actual

1,556,986

720,334

(l,406.000)

(1,406,000)

150,986

(685,666)

2014

Variance with Final Budget

Actual

(836,652)

296,040

(500,000) (836,652)

(203,960)

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

6,334,876

6.334,876

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

6,485,862

5,649,210

(836,652)

6,334,876

7,873

22,764

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

6,485,862

5,657,083

6,538,836

(828,77

6,357,640

TORT LIABILITY FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND BALANCE SHEET DECEMBER 31, 2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2014

2015

2014

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

3,084,100 1,969,727 102.462

3,044,609 1,670,466 174.368

5.156.289

4.889.443

2,695

40,398

LIABILITIES Accrued expenditures

DEFERRED

INFLOWS

OF RESOURCES

Unavailable revenue - property taxes

3,084.100

3.044.609

102,462 1,748,592 178.440

174,368 1,477,793 152.275

2.029.494

1,804.436

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

5.156.289

4.889.443

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2014

AND

2015

Original and Final Budget Revenues: Property taxes Charges for service Other

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

3,000,000 2,000 66.685

2014

Variance with Final Budget

Actual

3,070,067 985 25.180

70,067 (1,015) (41 ,505)

Actual

3,155,829 1,320 9,336

3.068,685

3.096.232

27,547

3.166,485

1,281,000 23,592 59,405 256,056

1,255,414 23,830 12,354 239,605

25,586 (238) 47,051 16,451

1,332,287 24,561 7,776 211,921

82,630 13,047 28,900

117,893 10,763 13,254

(35,263) 2,284 15,646

61,957 19,896 27,623

1,196,767 159,796

1,131,280 111.903

65,487 47.893

1,027,019 244,485

3,101,193

2.916.296

184.897

2,957,525

179,936

212,444

208,960

(32,508)

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

1.801.847

1,801.847

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

1,769,339

1,981,783

212,444

1,801,847

47,711

2,589

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

1,769,339

2,029.494

1,592.887

260.155

1,804.436

EMERGENCY

RESCUE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND

BALANCE SHEET DECEMBER 31, 2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2014

2015

2014

ASSETS Property taxes receivable Due from other funds Total assets

1,120,828 650.368

999,189 616,075

1,771,196

1,615,264

13,747 17,582

LIABILITIES Accounts payable Accrued expenditures Total liabilities

16,637

31.329

16,637

1,120,828

999.189

350,162 268,877

399,028 200.410

619.039

599.438

DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes

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

1,771,196

1,615.264

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31,2014

AND

2015 Original and Final 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 Vehicle maintenance Contractual: Professional services Other Total expenditures and encumbrances

920,000 63,582 2,493 3,615 4.057

Actual

987,427 61,867 1,650 2,738 5.413

2014 Variance with Final Budget

67,427 (1,715) (843) (877) 1,356

Actual

1,014,310 57,051 1,457 2,701 3211

993,747

1,059,095

65348

614,054 21,865 16,222 118,918

724,698 24,179 7,628 113,804

(I 10,644) (2,314) 8,594 5,114

667,272 22,657 3,428 100,235

11,530 81,514 5,486 52,409 2,680 7,800

7,296 59,971 4,616 35,528 3,318 7,795

4,234 21,543 870 16,881 (638) 5

7,814 55,646 5,966 39,090 3,568 8,560

33,023 8, I01

39,428 7,381

(6,405) 720

29,984 7.452

1.035,642

(62.040)

951,672

973,602

1.078.730

2015

Original and Final Budget Excess of revenues over expenditures and encumbrances

Actual

20,145

2014

Variance with Final Budget

23,453

Actual

3,308

127,058

Other financing uses: Transfers out

(l00.000)

Net change in fund balances

20,145

23,453

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

591,493

591.493

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

611,638

614,946

3,308

591,493

4.093

7.945

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

611,638

619.039

3,308

27,058

564.435

7.401

599.438

AMBULANCE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND BALANCE SHEET DECEMBER 31, 2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2014

2015

2014

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

8,632,022 1,077,454 3,872,549

8,413,385 1,161,871 3,035,411

13.582.025

12.610,667

226,104 6.718

213,942

LIABILITIES Accrued expenditures Due to fiduciary trust fund Total liabilities

DEFERRED

INFLOWS

232.822

213,942

8.632.022

8.413.385

20,130 4.697.051

24,705 3.958.635

4,717,181

3.983.340

OF RESOURCES

Unavailable revenue - property taxes

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

13.582.025

12.610.667

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31,2014

AND

2015

Original and Final 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 Commod ities: Heat, light and power Operational supplies Postage and printing Protective clothing Repairs and maintenance Telephone Vehicle maintenance Contractual: Billing services Professional services Other Total expenditures and encumbrances

7,688,961 3,016,735 24,181 35,062 71.090

Actual

8,438,451 3,111,254 15,999 26,561 86.689

2014

Variance with Final Budget

749,490 $ 94,519 (8,182) (8,50 I) 15,599

Actual

8,370,766 3,011,493 14,137 26,207 39,704

10,836.029

11.678.954

842,925

11,462,307

6,818,295 237,462 59,575 1,590,258

7,178,681 260,575 28,749 1,512,490

(360,386) (23,113) 30,826 77,768

7,463,047 245,140 21,682 1,332,803

111,837 217,993 12,090 69,155 460,130 25,994 70,200

70,764 223,846 4,761 56,845 413,957 32,181 70,158

41,073 (5,853) 7,329 12,310 46,173 (6,187) 42

77,778 288,947 4,805 88,246 354,653 34,603 77,043

130,000 316,398 258,587

106,033 379,534 299,687

23,967 (63,136) (41,1 00)

144,013 284,758 266.055

10.377.974

10,638,261

(260,287)

10.683.573

2015

Original and Final Budget Excess of revenues over expenditures and encumbrances

Actual

2014

Variance with Final Budget

Actual

458,055

1,040,693

(300,000)

158,055

740,693

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

3,961.574

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

4,119,629

4,702,267

582,638

3,961,574

14,914

21.766

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)

ll.l 19, 2

4,717,181

582,638

778,734

(525,000) 582,638

253,734

3,707,840

597,552

3,983340

CAPITAL PROJECTS

FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPITAL PROJECTS FUND BALANCE SHEET DECEMBER 31,2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31,2014

2015

2014

ASSETS Cash and investments Due from other funds Total assets

2,027,086 177.655

4,476,326

2.204.741

4.476326

58,883 1,745.507

LIABILITIES Accounts payable Due to other funds

Total liabilities

1,804,390

FUND BALANCES Assigned

2.671.936

2.204.741

Total liabilities and fund balances

2.204.741

4.476326

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPIT AL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2015 WITH COMP ARA TIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31,2014

AND

2015

Original Budget Revenues: Investment income Other

Total expenditures and encumbrances Deficiency of revenues over expenditures and encumbrances Other financing sources: Installment contract Transfers in

Variance with Final Budget

Actual

Budget

Total revenues Expenditures and encumbrances: Debt service: Principal Interest Capital outlay

2014

Final

2,626 5,954

Actual

3,504 4,500

8,580

8,004

(108,305) (33,096) 406,554

104,998 36,403 2.385,642

300,000

1,145,000

108,305 33,096 738,446

300.000

1.145.000

879.847

265,153

2,527,043

(300.000)

( 1.145,000)

(871,267)

273,733

(2,519,039)

1,155,822

Total other financing sources Net change in fund balances

500,000

500.000

500,000

200.000

(645,000)

(371,267)

1.155.822 273,733

(1,363,217)

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

2.081.700

2,081.700

2.081.700

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

2,281,700

1,436,700

1,710,433

273,733

2,081,700

494.308

590.236

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

2.281.700

1,436,700

2.204.741

3,444.917

768,041

2,671.936

NONMAJOR GOVERNMENTAL FUND

DEBT SERVICE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND BALANCE SHEET DECEMBER 31, 2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31,2014

2015

2014

ASSETS Due from other funds

21,3 06

~$===2~1~,3~0~6

21,3 06

~$=====2~1=,3~O~6

FUND BALANCES Assigned

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND SCHEDULE OF EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2014

2015

Original and Final Budget Expenditures: Debt service: Principal Interest

Total expenditures Other financing sources: Transfers in

1,1]5,000 91.000

Actual

],115,000 91.000

2014

Variance with Final Budget

Actual

1,206,000

1,1] 5,400

1.206.000

1,206.000

1,125.000

Net change in fund balances

9,600 21.306

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

985,000 130,400

21,306

21.306 $

21.306

] 1.706 $

21.306

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF NET POSITION - FIDUCIARY FUNDS DECEMBER 31,2015

Retiree Health Insurance

Firefighters' Pension

Total

4,499,392 250,117

15,091,034 2,449,729 598,478 7,975,345 13,746,666 62,218,332 1,394,902 23,205,705 14.619

749,237

4,586,228 250,117

15,840,271 2,449,729 598,478 7,975,345 13,746,666 68,857,709 1,747,502 23,205,705 14.619

6,639,377 352,600

13 1.444.319

Total assets

86,836

7.828.050

139.272.369

LIABILITIES Accounts payable Due to other funds Total liabilities

35,372 8.884

44.256

44,256

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

131,400,063

131,400,063 7,828,050

7.828,050

Total net position

IJ 1.400,063

7,828,050

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF CHANGES IN NET POSITION - FIDUCIARY FUNDS YEAR ENDED DECEMBER 31, 2015

Retiree Health Insurance

Firefighters' Pension Additions: Contributions: Employer Plan members

4.443.864

Total contributions 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 Net position at end of year

3,293,073 1J50.791

3,293,073 1.150.791 4.443.864

1,047,223 (236.303)

42,229 (15.681)

1,089,452 (251.984)

810.920

26.548

837.468

5.254.784

26.548

5,281,332

3,766,976 84.706

761,916

4,528,892 84.706

3.851.682

761,916

4.613.598

1,403,102

(735,368)

667,734

129.996.961 $ 131.400.063

Total

8.563.418

138.560.379

7.828,050

$ 139.228.113

FIREFIGHTERS' PENSION FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF NET POSITION DECEMBER 31, 2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2014

2015

2014

Total assets

4,499,392 250,117

3,088,458 283,226

15,091,034 2,449,729 598,478 7,975,345 13,746,666 62,218,332 1,394,902 23,205,705 14,619

13,221,089 2,760,473 739,793 8,239,762 10,478,256 65,115,256 2,153,914 23,966,847 14,283

131,444,319

130,061,357

35,372 8,884

41,728 22.668

44.256

64,396

$ 131,400,063

$ 129,996,961

LIABILITIES Accounts payable Due to other funds Total liabilities

NET POSITION Net position restricted for pension benefits

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF CHANGES IN NET POSITION YEAR ENDED DECEMBER 31,2015 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31,2014

2015 Additions: Contributions: Employer Plan members Other

Total contributions Investment income Less investment expense Net investment income Total additions Deductions: Benefit payments Administrative expenses Total deductions Net increase in net position Net position at beginning of year Net position at end of year

3,293,073 1,150,791

2014

3,386,334 1,214,057 50

4.443,864

4.600.441

1,047,223 (236.303)

7,812,933 (241.839)

810.920

7.571.094

5,254,784

12.171,535

3,766,976 84,706

2,571,284 98.752

3.851.682

2.670.036

1,403,102

9,501,499

129,996,961

120.495.462

13 1.400.063

$ 129.996.961

RETIREE

HEALTH

INSURANCE

FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND STATEMENT OF NET POSITION DECEMBER 31,2015 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2014

2015

2014

ASSETS Cash Investments: Debt issues: Corporate Mutual funds U.S. government agency obligations

86,836

749,237 6,639,377 352,600

Total assets

62,625

503,212 7,645,084 352,497

7,828,050

8,563,418

7,828,050

8,563,418

NET POSITION Net position restricted for other post-employment

benefits

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND STATEMENT OF CHANGES IN NET POSITION YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2014

2015 Additions: Investment income Less investment expense

Net investment income Deductions: Benefit payments Net decrease in net position

42,229 05,681)

2014

26,548

56,086

761.916

213,936

(735,368)

(157,850)

8,563.418

Net position at beginning of year Net position at end of year

88,361 (32.275)

7.828.050

8,721.268 $

8.563.418

STATISTICAL

SECTION

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATISTICAL SECTION DECEMBER 31, 2015

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 72-73 Changes in Net Position 74-75 Fund Balances of Governmental Funds 76-77 Changes in Fund Balances of Governmental Funds 78-79 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 80-81 Schedule of Assessed Valuations, Tax Rates, Extensions and Collections 82-83 Property Tax Rates - Direct and Overlapping Governments 84-85 Principal Property Taxpayers 86-87 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 88-89 Ratios of General Obligation Debt Outstanding 90 Direct and Overlapping General Obligation Debt 91 Legal Debt Margin Information 92-93 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 Demographic and Economic Statistics 94-95 Principal Employers 96-97 Operating Information - These schedules contain service data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Page Full-time Equivalent District Employees by Type 98-99 Operating Indicators by Function 100-101

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

2012

2013

2014

2015 Governmental activities: Net investment in capital assets Restricted Unrestricted Total governmental activities net position (deficit)

$ 15,620,884

14,581,762

13,719,919

12,577,376

2,415,372

1,962,414

1,996,258

2,118,736

(20,148,296)

9.264.348

9.357.299

9,980,960

$ 12,1 12,040) $

25,808,524

25,073.476

24, 77,072

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

2011

12,313,750

2009

2010

7,904,930

10,455,243

9,286,733

2006

2007

2008

7,857,463

7,425,514

2,252,121

3,125,891

3,547,361

3,310,447

1,892,942

2,668,092

9.967.417

13.116,667

10.448.361

10.227.394

11.046.809

7.296.947

24.533.288

24.147,488

24.450.965

22.824.574

20.797.214

17.390.553

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

2015 Expenses Governmental activities: Fire and rescue Emergency medical service General government Interest expense 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

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

2014

$ 14,474,684 11,756,488 2,805,863 1226,969

32,630,733

2013

2012

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

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

29,458,383

29,898,579

30264,004

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

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

363,134 2,789,402 165,695 64,944 20.000

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

Total primary government program revenues

3.586,823

3,459,036

3,403,175

2,965,541

Net (expense)/revenue Total primary government net expense

(29,043.910)

(26,804-,968)

(26,055208)

(26.933.038)

27,391,827 43,937 26,420

27,304,943 43,351 25,432

26,170,143 53,633 42,090

26,611,660 36,696 47,768

285,166

166,290

185,746

551,891

27.747.350

27.540.016

26,451,612

27.248.015

General revenues and other changes in net position Governmental activities: Taxes: Property Personal property replacement Investment income Rental income Other income Total primary government general revenues Change in net position Total primary government

$ ( 1.296.560)

735.048

396,404

314,977

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

2011

2010

2009

2007

2008

2006

$ 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

$ 10,943,319 8,392,569 2,204,848 283.397

$ 10,448,488 8,093,054 1,025,839 127.377

28,799.268

28.270.333

26.409.473

24.619.246

21.824.133

19.694.758

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

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

355,763 681,971

2,638,576

2,629.428

2.599.248

1.732.925

(26,160,692)

(25,640,905)

(23.810.225)

(22.886.321)

(20,701.083)

(18,597.405)

25,919,259 49,442 47,636

24,473,283 48,831 61,362

25,099,514 45,287 72,820

24,404,824 53,682 378,131

23,057,944 54,494 893,718

530,155

753,952

218.995

77,044

101.588

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

26,546.492

25.337.428

25.436.616

24.913.681

24,107.744

23.339,928

385,800

(303.477)

1.626.391

2,027.360

59,619

1.097.353

IJ23.050

3.406,661

4,742,523

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

2014

2015 General Fund: Reserved Unreserved Nonspendable Restricted Assigned Unassigned Total General Fund

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

Note:

108,434 2,176,794 455,190 5.565.198 $

8305,616

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

6.676.582

5,315 1,810,994 684,302 6.804.456 $

9.305,067

$ 22,420 7,398.484

24,705 6,651,877 $

8.829.142

6.943.228

8,761,514

2012

2013

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

20,130 6,923,098 $

ILLINOIS FUNDS

7.420,904

8,101,238 $

8,101,238

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

6,717,040

1,220,121 9,509,945

2,720,495 9,732,715

2,054,995 10,697,837

1,272,320 2,846,283

10.730.066

12.453,210

12,752,832

4.118.603

10.389.995

6,717.040 $

10.389.995

ORLAND FIRE PROTECTlON DlSTRICT, ILLINOlS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS

2015

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

taxes

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

Total other financing

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

167,540

26,170,143 3,318,23 I 84,944 42,090 53,633

2012

185,746

26,611,660 2,80 I ,351 164,190 47,768 36,696 551,891

31,334,173

30,999,052

29,854,787

30,213,556

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

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

16,880,527 448,\ 10 76,483 3,889,503 29,075,713

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

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

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

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

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

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

1,743,305 1,174,494

1,534,998 1,222,763

1,325,000 1,188,476

834,374

2,027,616

1.037.187

860,000 198,850 452,153 265.701

31.523.425

32.966.824

31,011,046

(1,967,772)

( 1,156,259)

(189,252)

over expenditures

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

55,922,911 (25,709.35:5)

1,155,822 1,706,000 ( 1,706,000)

1,125,000 ( 1,125.000)

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

1.155,822

sources (uses)

Net change in fund balances Debt service as a percentage expenditures

285,666

Total revenues

Excess (deficiency) of revenues

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

2013

2014

( 189.252)

(811.950)

26,715,000 2,812,425 (2.812.425 ) 26,715,000

( 1.156.2 -9-) $

1,005.645

or non-capital 9.51 %

8.91 %

8.39 %

2.71 %

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

24,4 73,283 2,459,966 169,462 61,362 48,831

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

24,404,824 L658,080 74,845 378,131 53,682 965 479.293

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

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

530,155

753.952

762.922

29,185,068

27.966.856

28.579.791

26.999.820

25.568.978

24,760,094

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 3,073,3 19

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

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

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 67,3 77 124,986

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

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

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

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

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

660,000 321,726 50 2.456.963

590,000 273,108 79,725

1,540,000 136,537

77.'177

390,802

1,858,330 258,440

850,554 298,333

799,116 310,844

3,516,503

2,103,439

4.670.961

32,185,842

29,592,624

30, 6lU79

28,175,030

22.082,595

22,275,286

(3,000,774)

( I,625.7 )8)

(2.088.588)

(LI75.210)

3,486.383

2,484.808

2,575,975 (2,575.975)

906,000 1,855,000 ( 1.855.000)

1,320,000 ( 1.320.000)

8,090,277 5,174 (5.174)

1,156,947 ( 1.156,947)

130,000 (130,000)

8.090.277

906.000

2006

2007

2008

2009

2010

2011

(3.000,774.)

7.38 %

( 1.625.7

18)

4.18 %

( U112.Sl111) $"

4.27 %

(Ll75.210)

3.82 %

I L576,660

4.34 %

2. 114.80ll

7.66 %

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

Levy Year

Residential Propertv

Commercial Property

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

$ 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 1,599,048,504 1,546,073,930

$ 676,117,190 597,040,566 631,662,905 685,022,544 801,531,367 801,249,450 869,929,570 709,458,743 639,536,175 627,882,083

Ass ssed Value Industrial P"operl'y $

20,584,951 114,982,236 121,650,047 131,926,418 154,364,500 154,310,206 183,446,572 166,868,345 162,636,923 161,002,677

Source: Office of the Cook County Assessor

Farm Property $

325,376 349,582 369,854 401,097 469,316 469,151 787,568 737,880 741,526 837,103

Railroad Property $

485,658 386,107 408,498 443,006 518,352 518,170 407,715 354,862 300,730 237,360

Total Assessed Value $ 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 2,402,263,858 2,336,033,153

Estimated Actual Value $ 8,806,607,074 9,037,837,172

9,561,940,696 10,369,684,337 12,133,363,115 12,129,095,531 11,824,008,686

10,396,4 76,689 9,657,100,709 9,390,853,275

Total Direct Rate $ 1.2693 1.2374 1.1263 1.0497 0.8782 0.8361 0.8507 0.9502 0.9741 0.9715

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS SCHEDULE OF ASSESSED VALUATIONS, TAX RATES, EXTENSIONS AND COLLECTIONS DECEMBER 31,2015

2014 (2)

Assessed valuation (I)

$ 2.190.698.277

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

2013

$ 2.248.218,202

2012

$ 2.3 78.592.2 13

2011

$ 2.579.523.467

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

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

1.2693

1.2374

1.1263

1.0497

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

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

12,845,375 6,990,274 1,717,675 3,512,470 333,755 358,921 30,591 L289.762

3,889,256 206,000 355,350 29,870 L189.296

27.806,529

27.940.928

26.788.386

27.078.823

27,227,022

26,987,031 226.278

25,898,953 392.789

26,193,587 201.981

27.227.022

27.213.309

26.291.742

26.395,568

97.92 %

96.59 % 0.81

96.68 % 1.47

96.73 % 0.75

97.92 %

97.40 %

98.15 %

97.48 %

(I) Assessed valuation is as of the year preceding the fiscal year in which the taxes are levied. (2) 2014 is the most current information available. Data Source Office of the Cook County Clerk

2010 $ 3,018.249,531

2009 $ 3,017,187,943

2008 $ 2.941,295,693

2007

2006

$ 2.586,1 8X.23 1 '$ 2.402,263,8'58

2005 $ 2,336,033,153

0.4192 0.2190 0.0653 0.0000 0.1l31 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

0.4436 0.2661 0.0803 0.0302 0.0950 0.0058 0.0098 0.0010 0.0423

0.4136 0.2482 0.0810 0.0673 0.1049 0.0052 0.0094 0.0010 0.0409

0.8782

0.8361

0.8507

0.9502

0.9741

0.9715

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 \,\ 79,720

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

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

9,661,833 5,798,034 1,892,187 1,572,150 2,450,499 121,474 219,587 23,360 955,438

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

26,505,777

25,226,706

25,021,598

24,574,298

23.400.453

22,694,562

25,578,918 420.904

24,235,274 339.050

23,927,913 791 ,691

23,606,984 609,110

22,523,791 795,986

21,934,801 548,398

25.999.822

24,574.324

24,719,604

24,216,094

23,319,777

22,483,199

96.50 % 1.59

96.07 % 1.34

95.63 % 3.16

96.06 % 2.48

96.25 % 3.40

96.65 % 2.42

98.09 %

97.41 %

98.79 %

98.54 %

99.65 %

99.07 %

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

2014

Levy year Overlapping governments: Cook County Cook County Forest Preserve District Con sol idated 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 Acorn Public Library District Orland Hills Public Library District Mokena Community Park Bond 2005 Tinley Park Park District School District 135 School District 140 School District 146 Consolidated High School 230 Moraine Valley Comm. College 524 Total overlapping Orland Fire Protection

Source of information

- Cook County

2010

0.521 3.286 5.135 5.906 2.770 0.403

0.462 0.058 0.D25 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

21.235

20.327

19.019

17.094

14.688

1.269

1.237

1.126

1.050

I.S7S

22.504

21.564

20.145

11\.144

15.566

0.693 0.339 0.233 0.170

District

rates prior to 2007 are not currently

2011

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

0.085 0.018 0.055 0.073 0.006 0.040 0.017 0.430 0.418

governments

2012

0.560 0.069 0.031 0.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

0.568 0.069

Totals

Overlapping

2013

available.

Clerk's Office

2009

2008

2007

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.\06 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

13.793

14.970

14.903

0.836

0.851

0.950

14.629

15.S21

15.853

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL PROPERTY TAXPAYERS* DECEMBER 31,2015

Taxpayer Simon Property Group IRC Metra Triangle LLC Constance Oswald St. George Corp Supervalu Inc. B & G Realty Legal Dept J.C. Penney Co., Inc. Cambridge Realty Captl Marquette Finance Orland Park Joint Venture Sears 0768 Tax B2 109A Albertson's Prop. Tax Macy Department Stores MCRAES, Inc.

Tvpe of Business Orland Square Mall (includes smaller stores) Shopping centers and one-story store Special rental structure Commercial buildings, 2 or more stories Commercial bui Idings over three stories Supermarket One story public garage/cinema Department store Special commercial improvements Retail and commercial structures Shopping Center Department store Supermarket Department store Department store

Total

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

Source: Office of the Cook County Clerk

2014

Taxable Assessed Value $

112,669,502 45,933,121 11,657,473 10,642,139 8,957,622 8,407,641 8,205,881 7,800,523 7,451,804 6,944,344

$ 228,670,050

Rank 1 2 3 4 5 6 7 8 9 10

2005 Percentage of Total District Taxable Assessed Value 5.14 % 2.10 0.53 0.49 0.41 0.38 0.37 0.36 0.34 0.32

10.44 %

Taxable Assessed Value $

Rank

Percentage of Total District Taxable Assessed Value

89,990,110 54,231,872

1 2

4.27 % 2.57

14,875,620

0.71

10,457,481 14,931,530

10 4

0.50 0.71

26,087,346 14,003,776 13,809,768 11,419,755 11,196,876

3 6 7 8 9

1.24 0.66 0.66 0.54 0.53

$ 261,004,134

12.39 %

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

Fiscal Year 2015

General Obligation Debt Certificates

General Obligation Bonds $

1,171,375

25,065,938

Installment Contract $

942,519

Fire Protection Notes

Notes PaY~lble $

2014

2,295,233

25,570,450

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

2007

7,637,757

732,000

1,050,824

877,000

2006

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

Total Primary Government $

Percentage of Personal Income

Per apita

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

6,938,995

0.25

7,798,577

0.34

104

7,700,721

0.34

103

8,369,757

0.37

112

877,000

0.04

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

General Obligation Debt

Fiscal Year 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

26,237,313 27,865,683 29,289,828 30,608,198 5,071,807 5,805,665 6,479,693 7,118,721 7,637,757

Less Amount Available in Debt Service Fund $

Total $

822,203 816,352 789,461 752,868 706,531

26,237,313 27,865,683 29,289,828 30,608,198 5,071,807 4,983,462 5,663,341 6,329,260 6,884,889

Percentage of Estimated Actual Taxable Value of Property (1) 0.30 % 0.31 0.32 0.30 0.04 0.04 0.05 0.06 0.07

Note: Details regarding the District's outstanding debt can be found in the notes to basic financial statements. (1)

See the Schedu Ie of Assessed Valuations, Tax Rates, Extensions and Collections for property value data.

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DIRECT AND OVERLAPPING GENERAL OBLIGATION DEBT DECEMBER 31, 2015

2014 Equalized Assessed Valuation Overlapping agencies: Cook County Cook County Forest Preserve Metropolitan Water Reclamation District

Outstanding Debt $

Applicable to District Percent Amount

3,362,051,750 116,060,000

(2)

1.713% 1.713

125,427,831,641

2,655,364,696

(\)

1.746

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

842,651,292 2,009,961,003

11,400,000 87,265,000

0.017 96.277

1,938 84,016,124

Park District: Tinley Park Park District

1,211,881,131

9,036,000

4.984

450,354

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

571,638,502 4,280,647,393 8,903,397,283

26.235 51.165 24.600

4,922,998 14,482,253 16.456.170

127,885,813,746 127,885,813,746

18,765,000 28,305,000 66,895,000 (2)

46,362,668

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

226,272,559

2,190,698,277

26,237,313

26,237.313

100.000

Total direct and overlapping general obligation debt

(I) (2)

57,591,946 1,988,108

252.509,1172

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

Note: Overlapping governments 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 borne 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 Reclamation District of Greater Chicago.

Department

of Revenue,

and Treasurer

of the Metropolitan

Water

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

Legal Debt Margin Calculation

for December 31, 2015

Assessed value

$ 2.190.698.277

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

125,965,151

Total statutory debt limit

125,965,151

Debt applicable to limit

27.179.832

Legal debt margin

2015 Debt limit

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

2014

2013

2012

$ 125,965,151

$ 129,272,547

$ 136,769,052

$ 148,322,599

27,179.832

28.916.507

29.289.828

30.880.000

98.785.319

$ 100.356.040

!Ii 107.479,224

$ 117.442.599

Total net debt applicable to limit Legal debt margin

98.785.319

21.5773 %

22.3686 %

21.4155 %

20.8195 %

2011

2010

2009

2008

2007

2006

$ 173,549,348

$ 173,488,307

$ 169,124,502

$ 148,705,823

$ 138,130,172

$ 134,321,906

5.025.000

6.883.330

7.733.884

7.627.000

8.287.000

877.000

$ 168.524.348

$ 166.604.977

$ 161,390.618

$ 141.078,823

$ 129,843.172

$ 133.444.906

2.8954 %

3.9676 %

4.5729 %

5.1289 %

5.9994 %

0.6529 %

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

Personal Fiscal

Population

Income

Per Capita

Unemployment

Median

Year

(I)

(in thousands)

Income (1)

Rate

Aee (1)

2015

65,868

$ 2,548,960

$ 38,698

2014

65,879

2,427,444

2013

65,879

2012

5.00 %

36.6

36,847

5.60

36.6

2,396,283

36,374

6.70

36.6

75,000

2,728,050

36,374

7.30

36.6

2011

75,000

2,728,050

36,374

8.20

36.6

2010

75,000

2,728,050

36,374

8.80

36.6

2009

75,000

2,285,025

30,467

10.60

41.4

2008

75,000

2,285,025

30,467

7.10

41.4

2007

75,000

2,285,025

30,467

3.00

41.4

2006

75,000

2,285,025

30,467

5.10

41.4

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

Education Level in Years of

School

Formal

Enrollment

chooJing (1)

(2)

8,313

8,468

8,602

8,793

8,956

9,100

9,327

9,500

9,504

N/A

ORLAND FIRE PROTECTION DISTRICT, PRINCIP AL EMPLOYERS DECEMBER 31, 2015

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

ILLINOIS

Tvpe of Business Elementary school (K-8) Supermarket and drug store Full service bank High School (9-12) Retai I department store Retai I department store Furniture dealer - retail Nursing and convalescent homes Home center Retail department store Manufacturer of communication and telecommunications products Insurance and financial consultants Communications systems and equipment Discount store

Note: Percentage of total District employment is based on the 2010 census and the 2000 census. Note: 2014 is the most current information available. Source: Phone survey

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

2015 Sworn Personnel - Full-time: Chief Officers Program Supervisor Lieutenants Lieutenants/Paramedics Lieutenants/EMT -Bs Program Supervisor Engineers Engineers/Paramedics Firefighters/Paramedics Firefighters/EMT -Bs

2014

2013

2012

6 3 23 1

6 3 24 4

6 3 26 4

24 56 2

29 50 3

30 44 3

30 38 2

115

119

116

109

Sworn Personnel - Fill-in: Sworn Personnel - Fill-In

Total Sworn Personnel

122

126

121

124

9 4 14 2 1 1 5

8 4 14 I 1 1 5

8 3 15 2 1 2 4

8 5 15 2 1 1 4

158

160

156

160

Total Sworn Personnel - Full-Time

Support Services and Overtime: Adm inistration Fire Prevention and Public Education Communications Training and safety EMS Specialty Teams Maintenance Total Support Services and Overtime Total

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

2011

2010

7 3 27 4

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 I 30 42 2

1II

114

115

117

125

124

125

123

7 5 15 I I I 4

10 6 15 I 1 1 4

11 6 16 I I I 3

8 6 17 1 1 1 3

159

162

164

160

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS OPERA TING INDICA TORS BY FUNCTION LAST EIGHT YEARS

2015 Activity: Ambulance ALS Ambulance BLS Other Line trouble Fire alarm Mutual aid Citizens assist Vehicle accident Fire Service Total call volume

2014

2013

2012

2011

3,118 2,290 236 637 648 783 636 357 316 242

2,992 2,193 682 676 577 524 514 439 336 183

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

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

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

9.263

9,116

8,499

8,393

8,115

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

100

2010

2009

2008

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

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

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

8,036

7.967

8,282

101