2013 annual financial audit

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

in Illinois

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS

COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED DECEMBER 31,2013

Submitted by: Kerry Sullivan Finance Director

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT


CONTENTS

INTRODUCTORY SECTION

Letter of Transmittal

GFOA Certificate of Achievement

Organizational Chart

Names and Titles of Principal Officials

FINANCIAL SECTION

Independent Auditor's Report

Management's Discussion and Analysis

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

1- V

VI

Vll

V111

IX - Xl

Xll - xx

2

3

of Net Position 4

Statement of Revenues, Expenditures and Changes III Fund Balances -Governmental Funds 5 - 6

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 7

Statement of Revenues, Expenditures, Encumbrances and Changes in Fund Balances - Budget and Actual - General Fund and Major Special Revenue Fund 8 - 11



CONTENTS

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

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

Notes to Basic Financial Statements

Required Supplementary Information:

Firefighters' Pension Fund

Illinois Municipal Retirement Fund

Retiree Health Insurance Plan

Combining and Individual Fund Financial Statements and Schedules:

Major Governmental Funds:

General Fund:

Combining Schedule of General Fund Balance Sheet Accounts

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

Corporate Fund:

Balance Sheet

Schedule of Revenues, Expenditures, Encumbrances and Changes III

Fund Balances - Budget and Actual

Tort Liability Fund:

Balance Sheet

Schedule of Revenues, Expenditures, Encumbrances and Changes III

Fund Balances - Budget and Actual

12

13

14 - 37

38

39

40

41

42 - 43

44

45 - 46

47

48



CONTENTS

Emergency Rescue Fund:

Balance Sheet

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

Ambulance Fund:

Balance Sheet


Capital Projects Fund:

Balance Sheet


Nonmajor Governmental Fund:

Debt Service Fund:

Balance Sheet

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

Fiduciary Funds:

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

Combining Statement of Changes ill Net Position - Pension and Other Employee Benefit Trust Funds

49

50 - 51

52

53 - 54

55

56

57

58

59

60


YEAR ENDED DECEMBER 31, 2013

CONTENTS

Firefighters' Pension Fund:

Statement of Net Position

Statement of Change in Net Position

Retiree Health Insurance Fund:

Statement of Net Position

Statement of Change in Net Position

STATISTICAL SECTION

Net Position by Component

Changes in Net Position

Fund Balances of Governmental Funds

Changes in Fund Balances of Governmental Funds

Schedule of Assessed Value and Estimated Actual Value of Taxable Property

Schedule of Assessed Valuations, Tax Rates, Extensions and Collections

Property Tax Rates - Direct and Overlapping Governments

Principal Property Taxpayers

Outstanding Debt by Type

Ratios of General Obligation Debt Outstanding

Direct and Overlapping General Obligation Debt

Legal Debt Margin Information

Demographic and Economic Statistics

61

62

63

64

65 - 66

67 - 68

69 -70

71-72

73 -74

75 -76

77

78 -79

80 - 81

82

83

84 - 85

86 - 87



CONTENTS

Principal Employers

Full-time Equivalent District Employees by Type

Operating Indicators by Function

88 - 89

90

91

INTRODUCTORY SECTION

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ORLAND FIRE PROTECTION DISTRICT f\chl1i 11 istration Cc 11 tel'

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June 24,2014

Board of Trustees Orland Fire Protection District

ISO Class 2

We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the Orland Fire Protcdion District (the District) for the year ended December 31, 2013. The CAFR includes a complete set or financial statements presented in conformance with United States generally accepted accounting principles. The financial statements arc audited by Mulcahy, Pauritsch. Salvador & Co., Ltd. : a firm of independent licensed certified public accountants who conducted the audit in accordance with generally accepted auditing standards.

This CAFR consists of management's representations concerning the finances of the District. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

To provide a reasonable basis for making its representations, management has established a comprehensive internal control framework. This framework is designed to provide reasonable assurance that assets arc safeguarded against loss, from unauthorized use or disposition and that account transactions arc executed in accordance with management's authorization and properly recorded so that the financial statements can be prepared in conformity with generally accepted accounting principles. The o~jectivc of the intemal control framework is to provide rcasonablt.!. rather than absolute, assurance that the financial statements are free of any material

m isstatemen ts.

The District's financial statements have been audited with the goal of providing reasonable assurance that the financial statements of the District for the fiscal year ended December 31, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor concluded: based upon the audit. that there was a reasonable basis for rendering an unqualified opinion that the District's financial statemenlS for the year ended December 3 L 2013 arc fairly presented in conformity with generally accepted accounting principles. The indl:!pendent auditor's report is presented as the 11rst component of the financial section of this report.

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

Profile of the District

The Orland Fire Protection District (the District) was organized in 1969. The District operates under the provisions ofthe Fire Protection District Act of the State of Illinois and the District operates under an elected Board of Trustees form of government. The five-member Board of Trustees constitutes the primary policy making body of the District. The Board of Trustees are responsible for, among other things, determining District policies, adopting the annual budget, levying taxes, adopting ordinances, and authorizing the payment of bills. The Fire Chief is appointed by the Board of Trustees and is responsible for the daily operations and management of the District. The Fire Chief recommends to the Board of Trustees all such matters as may be deemed necessary for the fulfillment of the administrative duties of his office.

The District provides a full range of services to the residents of the Village of Orland Park, the Village of Orland Hills and the unincorporated areas of Orland Township. These services include fire suppression services, emergency medical services, underwater rescue, hazardous material response, fire prevention and public education.

The District operates six fire stations which were strategically built to minimize response times based on projected populations. The District also operates a vehicle maintenance facility, a regional training center. and administrative offices which are adjacent to Fire Station 1.

The District's reporting entity includes general District government and all related organizations for which the District exercises financial accountability as defined by the Governmental Accounting Standards Board. Accordingly, the District includes the financial results of the Orland Firefighter's Pension Fund and the Orland Fire District Retiree Health Insurance Trust Fund in these financial statements.

The President, Board of Trustees and staff of the District are intent on maintaining the District's strong financial condition, while continuing to provide the highest level of public services to its residents.

Financial Planning and Budgeting

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

11

well in excess of the annual minimum required amounts. The result of these actions has allowed the District to minimize the future burden of these obligations as well as continue to provide a high level of service during these unsettled times.

The annual budget serves as the District's foundation for financial planning and control. All programs of the District are required to submit their budget requests to the Fire Chief before July 31 st of each year. After reviewing the budget requests, the Fire Chief presents a proposed budget to the Board of Trustees, who then hold public meetings to discuss the proposed budget. The tentative budget is made available to the pUblic. The Board of Trustees is required to hold a public hearing on the proposed budget and to adopt the final budget no later than December 31 st

of each year.

The budget is prepared by fund, but the format of the budget provides for a program budget with line item supplemental backup. Management is authorized to transfer budgeted amounts between departments within any fund; however, the Board of Trustees must approve any revisions that alter the total expenditures of any fund.

Budget to actual comparisons are provided in this report for General and Major Special Revenue Funds. The comparison is presented on pages 8-11 as part of the basic financial statements. For governmental funds other than the General and Ambulance Funds, this comparison is presented in the governmental fund subsection of this report beginning on page 41.

Economic Condition and Outlook

The District's financial position, as reflected in the financial statements presented in this report, is perhaps best understood when it is considered from the broader perspective of the environment within which the district operates.

The District is located in southwest Cook County, approximately 22 miles from Downtown Chicago and serves the Villages of Orland Park, Orland Hills, and unincorporated areas of Orland Township. The District covers approximately 33 square miles and has a population of approximately 75,000. The number of households within the District is approximately 25,000. The daytime population is higher due to the heavy retail concentration of Orland Park and Orland Hills. The area is easily accessible by O'Hare and Midway Airports, several interstate highways and Metro's commuter rail system.

The District has a diverse composition and economic base. Approximately 69% of the District's equalized assessed valuation (EA V) is related to residential development, 26% is related to commercial development and 5% is related to industrial development. The 2012 tax year EAV was $2,378,592,213. In the 2011 tax year, the District's EAV was $2,579,523,467. This 7.8% decrease is due, in large part, to the equalization factor issued by the Illinois Department of Revenue being reduced by 5.6%. The EAV decrease caused tax rate ceilings to be reached and the District's tax rate to increase.

Major employers within the District include Orland School District #135, the Village of Orland Park, Jewel/Osco Food Store, Carson Pirie Scott, lC. Penney, and Panduit Corporation. The

!l1

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

Major Initiatives for 2013

The District continues to work within the scope of its projected revenue while continuing to provide quality public services to its residents.

The District staffs a minimum of four engine companies, two truck companies and five ambulance crews daily. During 2013, District firefighters and paramedics responded to 8,499 calls, a 1.3% increase over 2012. Approximately 57.1% of these calls were for emergency medical services. The number of emergency medical service calls remained similar to 2012 after having increased by 80/0 from 2011. Line trouble alarm calls and vehicle accident calls increased 18.7% and 17.5% between 2012 and 2013, respectively.

District staff, under the direction of the Board of Trustees and the Fire Chief, have been involved in a variety of projects during 2013. A number of significant projects are discussed more thoroughly below.

Major Initiatives for the Future

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

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

• A significant renovation of Station 2 was completed.

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

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

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

Acknowledgments and Awards

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

iv

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orland Fire Protection District for its comprehensive Annual Financial Report (CAFR) for the previous five years beginning in 2008. A Certificate of Achievement is valid for a period of one year. We believe our current report meets the requirements of the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association and we are submitting it to GFOA to determine its eligibility for this year's award. To be awarded a Certificate of Achievement, the District must publish an easily readable and efficiently organized CAFR. This report satisfied both generally accepted accounting principles and other applicable requirements.

The timely preparation of the CAFR was made possible by the efficient and dedicated services of the Finance Department, Administration and other District employees who were instrumental in the successfully completion of this report. We sincerely appreciate and acknowledge the support and direction provided by the accounting firm of Mulcahy, Pauritsch, Salvador and Co., Ltd., in preparing the District's CAFR. We would also like to express our appreciation to the Board of Trustees for their leadership and support in planning and conducting the financial operations of the District in a responsible and progressive manner.

Respectfully submitted,

b:~ Kenneth Bruc 1

Fire Chief

v

Kerry SuI Ivan Finance Director

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to

Orland Fire Protection District

IDinois

For its Comprehensive Annual Financial Report

for the Fiscal Year Ended

December 31, 2012

~/.AM.:. Executive Director/CEO

vi

I Residents I I Trustee I Treasurer Trustee I Secretary Trustee I President Trustee Trustee I ChrisEvoy Jayne Sohirmache, Jim Hld<ev John Brudnak BIaI,Rhode

H Commissioner I I Commissioner I I Commissioner I Craig ScI'1midl I I Jim Bianci I I Oa~Wagne,

I Public Information I Fire Chief Executive Assistant I 1 Ken Bruoki I Gerry Strunka

I Deputy Chief J

I Battalion Chief Battalion Chief Battaliol'l Chief Battalion Chief Battalion Chief I Mike SchOfield BiliSonna' Dan SmIth Nick Ci lUeoaimi Ra Kay

I Finance II Human Resource I I Buildings J Fleet Officer Bureau Chief I Training Officer I I EMS Offlcer I K«ry SuUlvan Lucy McGlynn Jin Hyn .. l Mike Erooll l DalmPipor J Mark 0_

: I Operations I I Lieutenants I I Lieutenants I I Lieutenants J I Dispatch Supervisor I William Neumann

::; .

I Technical Rescue I I Engineers I I Engineers I I Engineers I I Dispat«:h I I Hazardous Materials I I Firefighters I Paramedics I I Firefighters J Paramedics I I Firefighters I Paramedics I I IT

l Dive I Water Rescue I I Officer Development I I Clothing J Gear I I Tools I Equipment J I GIS I I Origin I CaLISe I I Homeland Security I

I Assistant II Assistant I I Fleet I l Inspections

J I Training I I EMS I MaryCWghr.n Mary Jan. Christ Mechanics Pal Colier L

I Assistant II Reception I I Building I GrotInd I I Public Education I I Safety I I Community CARE I Pal SladniclO JoanPi~n$ Ma,k Koawara 8et.VDine

I Recorder I I Instructors I I Intern I I Cadets I I Part Time I I Summer Help I -

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

DECEMBER 31,2013

Board of Trustees

Mr. James P. Hickey - President

Mrs. Jayne Schirmacher - Secretary

Mr. Christopher G. Evoy - Treasurer

Mr. John Brudnak - Member

Mr. Blair Rhode - Member

Fire Chief

Ken Brucki

Finance Director

Kerry Sullivan

Vlll

FINANCIAL SECTION

~ MULCAHY, PAURITSCH, SALVADOR,CQ,cID.

Certified PublicAccountants/ Business and Personal Consultants

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

INDEPENDENT AUDITOR'S REPORT

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

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controL Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

IX

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

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information as well as the fiduciary fund type of Orland Fire Protection District, Illinois, as of December 31, 2013, and the respective changes in financial position thereof, and the respective budgetary comparison for the General Fund and the major special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principle

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

Other Matters

Required Supplementary Information

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

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of Orland Fire Protection District, Illinois. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

x

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

Orland Park, Illinois June 17,2014

Xl

MANAGEMENT'S DISCUSSION AND ANALYSIS

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

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

Financial Highlights

• The assets of the District exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $25,073,476 (net position). Of this amount, $13,719,919 IS

invested in capital assets and $1,996,258 is restricted; $9,357,299 remains unrestricted.

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

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

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

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

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

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the District's basic financial statements. These basic fmancial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements.

The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District's assets, liabilities and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

xii

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

The government-wide fmancial statements can be found on pages 1 - 2 ofthis report.

Fund Financial Statements

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

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains six individual governmental funds and subfunds. Information is presented separately for the major governmental funds in the Balance Sheet - Governmental Funds and in the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds. The General Fund, Ambulance Fund and the Capital Projects Fund are considered major funds. There is one nonmajor governmental fund.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with the budget.

The basic fund financial statements can be found of pages 3 - 11 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the District. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the District's own programs. The accounting used for fiduciary funds is on the full accrual basis.

The fiduciary funds utilized by the District are the Firefighters' Pension Fund and the Retiree Health Insurance Fund.

The basic fiduciary fund financial statements can be found/on pages 12 - 13 of this report.

xiii

Notes to Financial Statements

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

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the District's progress in funding its obligation to provide pension and OPEB benefits to its employees. This information is provided on pages 38 - 40 of the report.

The combining and individual fund financial statements and schedules in connection with the major, nonmajor governmental and fiduciary funds are presented immediately following the required supplemental information on pensions and OPEB. These statements and schedules can be found on pages 41 - 64 of this report.

Government-wide Financial Analysis

Statement of Net Position - Governmental Activities

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

Orland Fire Protection District Statement of Net Position - Governmental Activities

as of December 31, 2013 and 2012

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

Total assets

Liabilities: Current liabilities Noncurrent liabilities

Total liabilities

Deferred inflows of resources: Unavailable revenue

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

Total net position

xiv

$

2013

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

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

26,413,784

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

$ 25.073.476

2012

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

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

26,215,076

12,577,376 2,118,736 9,980,960

$ 24,677,072

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

Capital assets are used in the operations of the District. These are land, improvements, buildings apparatus, vehicles and equipment. Capital assets are discussed in greater detail in the section titled, "Capital Assets and Debt Administration," elsewhere in this analysis.

A net pension and post-employment benefit asset, which is further explained on pages 25 - 31 of this report, was recorded in 2013 in the amount of $22,654,719. Of this total, $21,420,608 is related to the Firefighters Pension Fund, $941,569 is related to the Illinois Municipal Retirement Fund, and the remaining $292,542 is related to the Retiree Health Insurance Fund. In December 2012, the District deposited funds in the Firefighters Pension Fund and the Illinois Municipal Retirement Fund to pay its actuarial unfunded liabilities to these funds through the issuance of debt certificates.

An investment of $17,009,010 in land, improvements, buildings, apparatus, vehicles and equipment, to provide the services to the District's residents, represents 20.2% of the District's total assets.

Liabilities Current and long-term obligations are classified based on anticipated payment date either in the near-term or in the future. Current obligations include accounts payable and accrued salaries and benefits. Long-term obligations including the Series 2007 General Obligation Bonds and the Series 2012 General Obligation Debt Certificates and compensated absences payable will be liquidated from resources that will become available after fiscal year 2014.

Deferred Inflows of Resources Unavailable revenue in the form of assessed 2013 property taxes to be collected after fiscal year 2013 totaled $26,413,784 at year end.

Net Position The assets of the District exceed liabilities resulting in a net position of $25,073,476, of which $9,357,299 is unrestricted. Total net position ofthe District does not include internal balances.

xv

Statement of Activities

The following chart shows the revenue and expenses of the District's activities during 2013 and 2012.

Orland Fire Protection District Statement of Activities

for the Years Ended December 31, 2013 and 2012

2013 2012 Revenues: Program revenues:

Charges for services $ 3,318,231 $ 2,801,351 Operating/capital grants and contributions 84,944 164,190

General revenues: Property taxes 26,170,143 26,611,660 Personal property replacement taxes 53,633 36,696 Investrnentincome 42,090 47,768 Other income 185,746 551,891

Total revenues 29,854,787 30.213,556

Expenses: Governmental activities:

Fire and rescue 14,125,007 14,444,780 Emergency medical service 11,371,042 11,520,507 General government 2,732,841 3,862,584 Interest 1,229,493 204,252

Total expenses 29,458,383 30,032,123

Changes in Net Position 396,404 181,433

Net position, beginning of year 24,677,072 24,495,639

Net position, end of year $ 25,013,416 $ 24,611,012

Governmental activities increased the District's net position by $396,404, or 1.6%. Key elements contributing to this net change are summarized below.

Revenue: For the year ending December 31, 2013, total revenue from governmental activities decreased by $358,769, or 1.2%.

Total program revenues, which include charges for services as well as operating and capital grants, increased by $437,634, or 14.8%. Charges for services increased by $516,880, or 18.5%. The increase in charges for services is related to an increase in ambulance fees. Operating grant revenue is received through FEMA's Assistance to Firefighters Program to offset the costs to train over 400 firefighters in the regional area. The classes funded by the grant began in 2011 and are expected to be complete in 2014.

xvi

General revenues, which includes property taxes, personal property replacement taxes, investment income, and other income decreased by $796,403 or 2.9% due mostly to the decrease in property taxes received. Property taxes decreased by $441,517, or 1.7%. The property tax extension (total property taxes billed) decreased by 1.0% due to a 7.8% decrease in the District's equalized assessed valuation.

Expenses: Expenses from governmental activities decreased by $573,740 (1.9%). Fire and rescue expenses and emergency medical service expenses combined decreased by $469,238, or 1.8%.

General government expenses were $1,129,743 less than the prior year. This represents a 29.2% decrease from 2012 due to the cost associated with the issuance of pension debt certificates in the prior year.

Interest expense increased by $1,025,241. This increase is due to pension debt certificates outstanding during the entire year.

Financial Analysis of the District's Funds

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements.

The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the District's governmental funds reported combined ending fund balance of $16,250,046, a decrease of $1,156,259 compared to the prior year. Of the total, $157,416 is considered non-spendable because it has been used for prepaid items. Ten percent, or $1,703,716, of the total is restricted due to external limitations on its use. These uses include general government ($42,121), emergency rescue ($332,883), tort immunity ($1,306,292), and ambulance ($22,420). Fifty-three percent, or $8,596,347, has been assigned, meaning there are limitations on its intended use. The assigned uses include general government ($817,544), tort immunity purposes ($141,619), emergency rescue purposes ($238,700), ambulance services ($3,709,651), capital projects ($3,677,127), and debt service ($11,706). The remaining thirty-six percent, or $5,792,567, is unassigned.

The General Fund is the main operating fund of the District. At the end of the current fiscal year, unassigned fund balance of the General Fund was $5,792,567, while total fund balance of the General Fund was $8,829,142. As a measure ofthe General Fund's liquidity, it may be useful to compare the unassigned fund balance and total fund balance to total fund expenditures. Total general fund expenditures for 2013 were $19,172,531. Unassigned fund balance represents 30.2 percent of these General Fund expenditures, while total fund balance represents 46.1 percent of that same amount.

XVll

Orland Fire Protection District General Fund Budgetary Highlights

For the Fiscal Year Ending December 31, 2013

Variance with Percentage of Budget Actual Budget Actual to Budget

Revenues Property taxes $ 19,002,222 $ 18,959,921 $ (42,301) 99.8% Charges for services 530,612 482,904 (47,708) 91.0% Other 338,752 325,381 (13,37l) 96.1%

Total 19,871,586 19,768,206 (103,380) 99.5%

Expenditures and Encumbrances

Personnel 16,090,327 14,752,920 1,337,407 91.7% Commodities 1,111,277 1,001,523 109,754 90.1% Contractual 1,532,050 1,531,326 724 100.0% Other 152,485 129,414 23,071 86.8% Debt service 1,441,876 (1,441,876)

Total 18,886,139 18,857,059 29,080 99.9%

Excess of Revenue Over Expenditures 985,447 911,147 (74,300)

Other Financing Sources Transfers out (1,071,600) (1,071,600)

Net Change in Fund Balance $ (86,153) $ (160,453) $ (74,300)

General Fund revenues in the amount of $19,768,206 are 0.5% under budget. Property taxes were 0.2% less than budget. Due to property tax receipts in the General Fund, the District abated property taxes in the Debt Service Fund and transferred funds to the Debt Service Fund to pay costs of the Series 2007 Bonds. Charges for services were 9.0% less than budget.

The District amended the 2013 budget to adjust expenditure/ revenue classifications and to present inter-fund transfers. General Fund expenditures in the amount of$18,857,059 are 0.1 % less than budget.

Capital Assets

The District's investment in capital assets for its governmental activities as of December 31,2013 amounts to $17,009,010. The District's investment in capital assets increased by $266,634, due to capital asset additions that exceeded depreciation expense for the year. This investment in capital assets included land, buildings and improvements, apparatus, vehicles, and equipment.

XV111

Orland Fire Protection District Capital Assets (net of accumulated depreciation)

December 31, 2013 and 2012

Land Buildings and improvements Apparatus and vehicles Equipment

Total capital assets

$

$

2013

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

435,241

17,009,010

$

$

2012

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

498,187

16,742,376

Major capital asset events during the current fiscal year included renovations to station #2 and the purchase of a new ambulance and command vehicles.

Additional information on the District's capital assets can be found in the notes to financial statements, see page 24.

Long-term Liabilities

The District has an outstanding general obligation bond of $3,260,000 at the end of the current fiscal year. The District retained its Aa1 rating from Moody's Investors Service for general obligation bond issues.

In December, 2012, the District issued taxable debt certificates in the amount of $26,715,000 to pay its actuarial unfunded liability of its pension funds. The District received an Aa2 rating from Moody's Investors Service for this specific issue. The District has outstanding general obligation debt certificates of $26,295,000 at the end of the current fiscal year.

Annual debt service payments were made as scheduled for the general obligation bond held by the District. No refinancing of debt occurred during 2013.

Bonds payable Debt certificates Compensated absences

Total long-term liabilities

Orland Fire Protection District Long-term Liabilities

December 31, 2013 and 2012

2013

$ 3,289,091 26,000,737

1,527,156

$ 30,816.984

2012

$ 4,202,949 26,405,249

1,403,326

$ 32,011.524

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

XIX

Economic Factors and Next Year's Budget and Rates

The District's primary revenue source is property taxes, representing approximately 86.7% of total revenue. The Property Tax Extension Limitation Law allows a taxing district to receive a limited inflationary increase in tax extensions on existing property, plus an additional amount for new construction, and voter-approved rate increases.

Budgeted revenue for 2014 is $30,426,600. Property taxes are assumed to increase for existing property by the Consumer Price Index and for new construction property. The District abated a portion of its non-capped property tax levies for tax year 2013. Other sources of budgeted revenue include fees for ambulance service, fees for dispatch services provided to other fire departments, and other miscellaneous sources.

Budgeted expenditures for 2014 are $30,531,621. Expenditures include salaries and benefits to maintain staffing levels, facility expenses to operate and maintain existing buildings, maintenance expenses to maintain existing apparatus, debt payments, and other miscellaneous expenditures. The 2014 budget includes maintaining staffing levels reduced by attrition, improving information technology and communications, replacing vehicles, and the purchasing of other specialized equipment.

Requests for Information

This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:

Office of the Finance Director Orland Fire Protection District

9790 West 15I S! Street Orland Park, Illinois 60462

xx

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION

GOVERNMENTAL ACTnnTrnS DECEMBER 31,2013

ASSETS

Cash and investments Receivables, net of allowance for uncollectibles:

Property taxes Accounts

Due from fiduciary trust fund Prepaid items Net pension and postemployment benefit asset Capital assets not being depreciated:

Land Capital assets, net of accumulated depreciation:

Buildings and improvements Apparatus and vehicles Equipment

Total assets

LIABILITIES

Accounts payable and other current liabilities Due to fiduciary trust fund Noncurrent liabilities:

Due within one year Due in more than one year

Total liabilities

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue - property taxes

Net investment in capital assets Restricted for:

Tort immunity Emergency rescue Postemployment benefits Other

Unrestricted

Total net position

See notes to basic financial statements.

NET POSITION

1

$

$

16,223,106

26,581,972 1,577,404

9,229 183,308

22,654,719

410,330

12,002,695 4,160,744

435,241

84,238,748

699,504 1,235,000

1,550,000 29,266,984

32,751,488

26.413,784

13,719,919

1,306,292 332,883 292,542

64,541 9,357,299

25,073.476

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF ACTIVITIES


Functions/programs: Governmental activities:

Fire and rescue Emergency medical service General government Interest expense

Total governmental activities

General revenues: Taxes:

Property Personal property replacement

Investment income Other income

'fotal general revenues

Change in net position

$

$

Net position ,at beginning of year, as restated

Net position at end of year

Expenses

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

29,458,383


$

$

Charges for Service

363,134 2,789,402

165,695

3,318,231

2

Program Revenues

$

Operating Grants and

Contributions

64,944 $

Capital Grants and

Contributions

20,000

$ 20,000 64,944 ~$ ==~~

$

$

Net (Expense) Revenue and

Change in Net Position

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

(26,055,208)

26,170,143 53,633 42,090

185,746

26,451,612

396,404

24,677,072

25,073,476

FUND FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS BALANCESHEET-GOVERNMENTALFUNDS

DECEMBER 31,2013

Nonmajor Capital Governmental

General Ambulance Projects Fund ASSETS

Cash and investments $ 11,750,349 $ $ 4,472,757 $ Receivables:

Property taxes 18,498,987 8,082,985 Accounts 399,614 1,177,790

Due from other funds 736,747 3,789,284 11,706 Due from fiduciary trust fund 9,229 Prepaid items 157,416

Total assets $ 31,552,342 $ 13,050,059 $ 4,472,757 $ 11,706

LIABILITIES

Accounts payable $ 264,865 $ $ 58,883 $ Accrued expenditures 326,549 Due to other funds 3,800,990 736,747 Due to fiduciary trust fund 1,235,000

Total liabilities 4392,404 1,235,000 795,630


Unavailable revenue - property taxes 18330,796 8,082,988

FUND BALANCES

Nonspendable 157,416 Restricted 1,681,296 22,420 Assigned 1,197,863 3,709,65.1 3,677,127 11,706 Unassigned 5,792,567

Total fund balances 8,829,142 3,732,071 3,677,127 11,706

Total liabilities, deferred inflows of resources, and fund balances $ 31,552,342 $ 13,050,059 ~ 4,472,757 ~ 11,706


3

Total Governmental

Funds

$ 16,223,106

26,581,972 1,577,404 4,537,737

9,229 157,416

$ 49,086,864

$ 323,748 326,549

4,537,737 1,235,000

6,423,034

26,413,784

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

16,250,046

~ 49,086,864

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL

FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2013

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

Total fund balances - governmental funds

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

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

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

General obligation bonds General obligation debt certificates Unamortized amounts:

Issuance discount Issuance premium

Compensated absences

Total

$ (3,260,000) (26,295,000)

294,263 (29,091)

(1,527,156)

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.

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

Net position of governmental activities


4

$ 16,250,046

17,009,010

25,892

(30,816,984)

(49,207)

22,654,719

$ 25,073.476

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31,2013

Nonmajor Capital Governmental

General Ambulance Projects Fund

Revenues: Property taxes $ 18,959,921 $ 7,210,222 $ $ Charges for service 482,904 2,835,327 Grant proceeds 64,944 20,000 Investment income 38,756 3,334 Personal property replacement taxes 53,633 Other 168,048 17,698

Total revenues 19,768,206 10,063,247 23,334

Expenditures: Current:

Personnel: Compensation and salaries 9,930,434 5,899,650 Payroll taxes 228,840 206,710 Education and seminars 72,914 24,144 Health and life insurance 1,818,607 2,356,584 Pension contribution 2,719,548

Commodities: Heat, light and power 69,354 29,720 Operational supplies 467,015 160,636 Postage and printing 6,236 Protective clothing 86,811 51,554 Repairs and maintenance 576,885 313,200 Telephone 24,589 24,811 Vehicle maintenance 70,911 71,499

Contractual: Billing services 116,816 Insurance 1,128,657 Professional services 402,669 321,850

Other 127,185 152,554 Debt service:

Principal 420,000 905,000 Interest 1,021,876 166,600

Capital outlay 1,037,187

Total expenditures 19,172,531 9,729,728 1,037,187 1,071,600


5

Total Governmental

Funds

$ 26,170,143 3,318,231

84,944 42,090 53,633

185,746

29,854,787

15,830,084 435,550

97,058 4,175,191 2,719,548

99,074 627,651

6,236 138,365 890,085

49,400 142,410

116,816 1,128,657

724,519 279,739

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

31,011,046

Nonmajor Total Capital Governmental Governmental

General Ambulance Projects Fund Funds

Excess (deficiency) of revenues over (under) expenditures 595,675 333,519 (1,013,853) (1,071,600) (1,156,259)

Other financing sources (uses): Transfers in 1,000,000 1,071,600 2,071,600 Transfers out (1,071,600) (1,000,000) (2,071,600)

Total other financing sources (uses) (1,071,600) (1,000,000) 1,000,000 1,071,600

Net change in fund balances (475,925) (666,481) (13,853) (1,156,259)

Fund balances at beginning of year 9,305,067 4,398,552 3,690,980 11,706 17,406,305

Fund balances at end of year $ 8,829,142 ~ 3,732,071 $ 3,677,127 $ 11,706 $ 16,250,046

6

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2013

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

Net change in fund balances - total governmental funds

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

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

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

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.

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

Amortization of issuance premium Amortization of issuance discount

Total

$ 8,858 (15,488)

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

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.

Change in net position of governmental activities


7

$

$

(1,156,259)

186,690

179,928

25,892

1,325,000

(6,630)

(34,387)

023,830)

396,404

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, ENCUMBRANCES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND MAJOR SPECIAL REVENUE FUND


General Fund Original Final Budget Budget Actual

Revenues: Property taxes $ 19,325,853 $ 19,002,222 $ 18,959,921 Charges for service 530,612 530,612 482,904 Grant proceeds 64,944 Investment income 21,719 21,719 38,756 Personal property replacement taxes 45,000 45,000 53,633 Other 272,033 272,033 168,048

Total revenues 20,195,217 19,871,586 19,768,206

Expenditures and encumbrances: Current:

Personnel: Compensation and salaries 9,689,574 9,701,290 9,930,434 Payroll taxes 241,663 241,663 228,840 Education and seminars llO,040 99,040 55,491 Health and life insurance 2,193,681 1,877,681 1,818,607 Pension contribution 4,025,977 4,170,653 2,719,548

Commodities: Heat, light and power ll4,802 114,802 69,354 Operational supplies 346,702 395,083 356,306 Postage and printing 22,000 22,000 6,236 Protective clothing 79,253 106,253 107,514 Repairs and maintenance 290,107 363,543 366,613 Telephone 37,844 37,844 24,589 Vehicle maintenance 59,752 71,752 70,9ll

Contractual: Billing services Insurance l,ll5,532 1,115,532 1,128,657 Professional services 225,518 416,518 402,669

Other 173,485 152,485 129,414 Debt service:

Principal 420,000 Interest 1,021,876

Total expenditures and encumbrances 18,725,930 18,886,139 18,857,059


8

Variance with Final Budget

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

003,985)

003,380)

(229,144) 12,823 43,549 59,074

1,451,105

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

841

(13,125) l3,849 23,071

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

29,080

of2

Ambulance Fund Original Final Variance with Budget Budget Actual Final Budget

$ 6,878,693 $ 7,196,878 $ 7,210,222 $ 13,344 2,138,681 2,138,681 2,835,327 696,646

13,287 13,287 (13,287)

44,164 44,164 17,698 (26,466)

9,074,825 9,393,010 10,063,247 670,237

5,725,750 5,840,065 5,899,650 (59,585) 208,274 208,274 206,710 1,564

42,869 30,869 26,309 4,560 1,337,655 2,372,655 2,356,584 16,071

49,202 49,202 29,720 19,482 106,914 126,914 83,859 43,055

46,346 62,346 63,661 (1,315) 173,168 256,168 234,431 21,737 38,157 31,157 24,811 6,346 60,248 72,248 71,499 749

100,000 100,000 116,816 (16,816)

164,647 342,647 321,850 20,797 150,000 150,000 152,554 (2,554)

8,203,230 9,642,545 9,588.454 54,091

9

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES, ENCUMBRANCES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND AND MAJOR SPECIAL REVENUE FUND


General Fund Original Final Budget Budget Actual

Excess (deficiency) of revenues over (under) expenditures and encumbrances 1,469,287 985,447 911,147

Other fmancing uses: Transfers out (1,565,543) (1,071,600) (1,071,600)

Net change in fund balances (96,256) (86,153) (160,453)

Fund balances at beginning of year (Non-GAAP budgetary basis) 8,856,611 8,856,611 8,856,611

Fund balances at end of year (N on-GAAP budgetary basis) 8,760,355 8,770,458 8,696,158

Adjustment to generally accepted accounting principles:

Current year encumbrances included in expenditures 132,984

Fund balances at end of year (GAAP basis) $ 8,760,355 ~ 8,770,458 ~ 8,829,142


10

Variance with Final Budget

(74,300)

(74,300)

(74,300)

132,984

~ 58,684

of2

Ambulance Fund Original Final Variance with Budget Budget Actual Final Budget

871,595 (249,535) 474,793 724,328

(250,000) (1,000,000) (1,000,000)

621,595 (1,249,535) (525,207) 724,328

4,233,047 4,233,047 4,233,047

4,854,642 2,983,512 3,707,840 724,328

__ ~24;:;.,,=<.:23~1 24,231

$ 4,854,642 $ 2,983,512 $ 3,732,071 ol!:$==7~4ol;;!8,===55===9

11

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF NET POSITION

FIDUCIARY FUNDS -PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS

DECEMBER 31, 2013

ASSETS

Cash $ Accrued interest receivable Due from other funds Investments, at fair value:

Debt issues Equities Insurance contracts Mutual funds U.S. government agency notes U.S. Treasury notes

Prepaid items

Total assets

LIABILITIES

Accounts payable Due to other funds

Totalliabilities

NET POSITION

Held in trust for pension benefits and other purposes $


12

2,672,793 241,385

1,235,000

10,915,881 9,835,709 9,300,988

65,931,377 2,452,798

26,662,111 5,192

129,253,234

27,275 9,229

36,504

129,216,730

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATEMENT OF CHANGE IN NET POSITION FIDUCIARY FUNDS - PENSION AND OTHER

EMPLOYEE BENEFIT TRUST FUNDS YEAR ENDED DECEMBER 31, 2013

Additions: Contributions:

Employer $ 3,954,548 Plan members 1,200,751 Other 100

Total contributions

Investment income 16,142,707 Less investment expense (216,694)

Net investment income

Total additions

Deductions: Benefits 2,437,158 Administrative expenses 118.412

Total deductions

Change in net position

Net position at beginning of year

Net position at end of year


13

$ 5,155,399

15,926,013

21,081,412

2,555,570

18,525,842

110,690,888

~ 129,216,730

NOTES TO BASIC FINANCIAL STATEMENTS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS


I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Description of Government-wide Financial Statements

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

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

Blended component units. The District's blended component units consist of the Orland Fire Protection District Firefighters' Pension Fund ("FPF") and the Retiree Health Insurance Plan (RHIP").

The District's sworn firefighters participate in the FPF. FPF functions for the benefit of these employees and is governed by a pension board. The District and the FPF participants are obligated to fund all FPF costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the District is authorized to approve the actuarial assumptions used in the determination of the contribution levels. Although it is legally separate from the District, the FPF is reported as if it were part of the primary government because its sole purpose is to provide retirement benefits for the District's sworn firefighters. The FPF is reported as a pension trust fund.

The District's sworn firefighters also participate in the RHIP, which provides health insurance coverage for retired employees and their spouse and dependents until they reach age 65. The District funds RHIP costs based upon actuarial valuations. The RHIP is reported as if it were part of the primary government because its sole purpose is to provide health insurance benefits for the District's sworn firefighters. The RHIP is reported as a trust fund.

C. Basis of Presentation - Government-wide Financial Statements

While separate government-wide and fund fmancial statements are presented, they are interrelated. The governmental activities incorporate data from governmental funds. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements.

As general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

14

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

D. Basis of Presentation - Fund Financial Statements

The fund financial statements provide information about the District's funds, including its blended component units. Separate statements for each fund category - governmental and fiduciary - are presented. The emphasis of fund financial statements is on major governmental funds. Major individual governmental are reported as separate columns in the fund financial statements. The remaining governmental fund is reported as a nonmajor fund.

The District reports the following major governmental funds:

The General Fund is the District's primary operating fund. It is comprised of three subfunds: the Corporate Fund, the Tort Liability Fund, and the Emergency Rescue Fund. The Corporate Fund accounts for the direct costs of fire suppression and an allocation of administration costs. The Tort Liability Fund accounts for all costs of insurance and risk management. The Emergency Rescue Fund is used to account for expenditures funded through property taxes levied for rescue purposes.

The Ambulance Fund accounts for the direct costs of emergency medical services and an allocation of administration costs.

The Capital Projects Fund accounts for financial resources accumulated for the acquisition or construction of capital improvements.

The District reports the following nonmajor governmental fund:

The Debt Service Fund accounts for the repayment of the District's bonded debt.

Additionally, the District reports the following fiduciary funds:

The Firefighters' Pension Fund accumulates resources for the benefit of the members of the pension fund.

The Retiree Health Insurance Fund accumulates resources for health insurance benefits for the District's retirees.

During the course of operations the District has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental funds) are eliminated.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide fmancial statements. Transfers between the funds included in governmental activities are eliminated.

15

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

E. Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

The governmental fund fmancial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Additionally, property taxes are recognized on the current year's levy in conjunction with the amount budgeted by the Board of Trustees for the current year with the unrecognized amount being recorded as unavailable revenue. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the District.

The pension and other postemployment benefit trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.

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.

16


The District follows these procedures III establishing the budgetary data reflected III the financial statements:

1. The Chief submits to the District Board of Trustees a proposed operating budget for the fiscal year. The operating budget includes proposed expenditures and the means of financing them for the general, special revenue, debt service, and capital projects funds.

2. Public hearings are conducted by the District to obtain taxpayer comments.

3. The budget is legally enacted through passage of an ordinance. The budget for the year ended December 31,2013 was adopted through the passage of ordinance number 2012-06 on November 27, 2012 and was subsequently amended through the passage of ordinance number 2014-02 on April 29, 2014.

4. With authorization from the Chief, the Finance Director is allowed to transfer appropriated amounts between line items within funds.

5. The level of control (level at which expenditures may not exceed budget/appropriations) is the line item of appropriation. Appropriations lapse at the end of the fiscal year.

6. Budgeted expenditures represent working budget amounts. The appropriation as adopted for each fund is as follows:

General Fund: Corporate Subfund Tort Liability Subfund Emergency Rescue Subfund

Ambulance Fund Capital Projects Fund Debt Service Fund

$ 18,419,296 2,052,647 1,793,959

11,339,489 1,500,750 1,232,340

Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed by the District. Outstanding encumbrances at the end of the year are reported in fund balance as restricted, committed or assigned and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. Encumbrances outstanding at December 31,2013 totaled $389,425.

The following funds had an excess of actual expenditures/encumbrances over the working budget amount for the year ended December 31, 2013:

Fund Budget Actual Variance

General subfunds: Tort Liability Fund $ 1,777,711 $ 1,784,247 $ 6,536 Emergency Rescue Fund 1,417,573 1,421,561 3,988

17


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

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

1. Cash and Cash Equivalents

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

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 using the straight-line method over the following estimated useful lives:

Buildings and improvements Apparatus Vehicles Equipment

18

Years

50 10-20

5 10


5. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position and or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.

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

6. Long-term Obligations

In the government-wide fmancial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts, as well as gains (losses) on refundings, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Gains (losses) on refundings are reported as deferred inflows (outflows) of resources. Bond issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenses.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

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.

19


8. Fund Balance Flow Assumptions

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

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 of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.

Amounts in the assigned fund balance classification are intended to be used by the District for specific purposes but do not meet the criteria to be classified as committed. Intent can be expressed by the Board of Trustees or by an individual or body to which the Board delegates the authority. The Board of Trustees may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

H. Revenues and Expenditures/Expenses

1. 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.

20


2. Property Taxes

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

3. Compensated Absences

It is the District's policy to permit employees to accumulate earned but unused sick pay beneftts. The liability for sick pay is reported as incurred in the government-wide ftnancial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements.

I. Estimates

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

J. Comparative Data

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

II. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS

A. Deposits and Investments

Deposits

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

21


Investments

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

Type of Investment

Firefighters' Pension Fund: Debt issues:

Corporate Foreign Municipal

Equities Insurance contracts Mutual funds U.S. government agency notes U.S. Treasury notes

Total

Retiree Health Insurance Fund: Equities Mutual funds

Total

Fair Value

$ 8,803,008 2,019,439

93,434 8,222,671 9,300,988

60,310,337 2,452,798

26,662,111

$117,864,786

$ 1,613,038 5,621,040

$ 7,234,078

Average Credit Qualitv Ratings ( 1)

AAA - BBB-I AAA - BA 1 AAA - BBB-/AAA-BAA2

AA-/AI N/A N/A N/A

AA+ -AA-/AAA N/A/AAA

N/A N/A

Weighted Average Years to

Maturitv (2)

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

N/A N/A

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

Investment Policies

District

The District's investments are subject to the following risks:

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

22


Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The District's investment program is derived from the terms and provisions of the Illinois Compiled Statutes Public Funds Investment Act (30 ILCS 235) which allow investment in instruments of the United States of America or its agencies, money market mutual funds with a minimum AA rating by at least two of the three largest credit rating agencies, public treasurer's investment pool and commercial paper with one of the three highest classifications by at least two of the three standard credit rating agencies. Commercial paper cannot exceed 180 days in maturity, 10% of the total outstanding paper of the issuing corporation or one-third of the cost of the portfolio.

Concentration of credit risk is the risk of loss attributed to the magnitude of the District's investment in a single issuer. The District, with the exception of U.S. Treasury securities and authorized pools, provides that no more than 50% of the District's portfolio will be invested in a single security type or in a single financial institution.

Custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District's investment policy requires the amount of collateral provided to be at a minimum of 110% of the fair value of the principal and accrued interest.

Firefighters' Pension Fund and Retiree Health Insurance Fund

The Firefighters' Pension Fund and Retiree Health Insurance Fund's investments are subject to the same risks as noted above and are addressed in the investment policies as follows:

Interest rate risk - an investment time horizon of average duration which is not to vary more than +/-30% of the duration of the Lehman Brothers Intermediate Government Bond Index, thereby allowing the fund to tolerate moderate interim fluctuations in market value and rates in order to achieve its long-term objectives.

Credit risk - the investment programs of the Firefighters' Pension Fund and the Retiree Health Insurance Fund are derived from the terms and provisions of the Illinois Compiled Statutes Public Funds Investment Act (40 ILCS 5/1-113) which allow investment in instruments of the United States of America or its agencies, savings accounts, certificates of deposit, public treasurer's pool, interest bearing bonds of any county, township or municipal corporation, mutual funds, certain short-term obligations of U.S. corporations, common stocks and general or separate accounts of life insurance companies authorized to transact business in Illinois.

Concentration of credit risk - total investments in authorized items of the Firefighters' Pension Fund and Retiree Health Insurance Fund are not allowed to exceed 10% of the portfolio's overall allocation in one single security.

Custodial credit risk - the investment policies of the Firefighters' Pension Fund and the Retiree Health Insurance Fund do not specifically define custodial credit risk.

23


B. Receivables

The allowance for uncollectible ambulance accounts receivable of $130,000 IS based on previous collection experience.

C. Capital Assets

Capital asset activity for the year ended December 31, 2013 was as follows:

Governmental activities: Capital assets, not being depreciated:

Land $

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

Total capital assets, being depreciated

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

Total accumulated depreciation

Total capital assets, being depreciated, net

Beginning Balance Increases

410,330 ~$ ___ _

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

25,910,031

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

9,577,985

16,332,046

753,423 199,598 58.274

1,011,295

303,113 407,034 121,220

831,367

179,928

Decreases / Adjustments

$

86,706

86,706

86,706

$

Ending Balance

410,330

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

27,008,032

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

10,409,352

16,598,680

Governmental activities capital assets, net $ 16,742,376 $ 179,928 ~$=~86;;.o,,71:::li0~6 $ 17,009,010

Depreciation expense was charged to functions/programs as follows:

Governmental activities: Fire and rescue Emergency medical service General government

Total depreciation expense -governmental activities

$

$

24

445,861 268,094 117,412

831,367


D. Pension and Postemployment Benefit Obligations

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

1. Firefighters' Pension Fund

Plan Description. Fire sworn personnel are covered by the Orland Fire Protection District, Illinois Firefighters' Pension Plan which is a defined benefit single-employer pension plan administered by the Orland Fire Protection District, Illinois Firefighters' Pension Fund Board. Although this is a singleemployer pension plan, the defined benefits and employee and employer contributions levels are governed by Illinois State Statutes (Chapter 108 1/2 Article 3) and may be amended only by the Illinois legislature. The District accounts for the plan as a pension trust fund. The Pension Fund issues a publicly available fmancial report that includes financial statements and required supplementary information. The report may be obtained at the Pension Fund's administrative office, located at 9790 West 151st Street, Orland Park, Illinois, 60462.

At December 31, 2012, the Firefighters' Pension Plan membership consisted of:

Retirees and beneficiaries receiving benefits 37 Terminated plan members entitled to but not yet receiving benefits 3 Active plan members 116

Total 156

Number of participating employers 1

The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to plan members and their beneficiaries.

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

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The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original granted pension. Beginning with increases granted on or after July 1, 1993, the second and subsequent automatic annual increases shall be calculated at 3% of the amount of the pension payable at the time of the increase.

Tier 2 employees (those hired on or after January 1,2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighter's salary for pension purposes is capped at $106,800, plus the lesser of one-half of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least 10 years of service may retire at or after age 50 and receive a reduced benefit (i.e., 112% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or 1/2% of the change in the Consumer Price Index for the preceding calendar year.

The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. The District's contributions are recognized when due and a formal commitment to provide the contributions has been made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. All plan investments are reported at fair value. Securities traded on a national exchange are valued at the last reported sales price of the fiscal year. Securities without an established market are reported at estimated fair value.

Funding Policy. Plan members are required to contribute 9.455% of their annual covered payroll. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The District is required to contribute at an actuarially determined rate; the current rate is 25.39% of annual covered payroll. Administrative costs of the Firefighters' Pension Plan are fmanced through investment earnings.

The significant actuarial assumptions are as follows:

Actuarial valuation date Actuarial cost method Asset valuation method Amortization method Amortization period Rate of return on present and future assets * Projected salary increases * * Includes inflation at

. Cost-of-living adjustments

26

December 31,2012 Projected unit credit cost method

Market Value Level percentage of pay, closed

29 years 7.0% 5.0% 3.5%

2.0% per year


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

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

Annual pension cost Contributions made

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

Net pension asset at end of year

$ 3,386,334 (1,489,909)

686,923

2,583,348 2,719,548

136,200 21.284.408

$ 21.420,608

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

Net Fiscal Annual Pension Year Pension Percentage Asset

Ended Cost Contributed (Obligation)

12/31/13 $ 2,583,348 105.27 % $ 21,420,608 12/31/12 4,714,289 616.76 21,284,408 12/31/11 3,981,333 94.50 (3,077,016)

Funded Status and Funding Progress. As of December 31, 2012, the most recent actuarial valuation date, the Plan was 96 percent funded. The actuarial accrued liability for benefits was $107,303,345 and the actuarial value of assets was $103,425,685, resulting in an unfunded actuarial accrued liability (VAAL) of $3,877,660. The covered payroll (annual payroll of active employees covered by the Plan) was $11,687,616 and the ratio of the VAAL to the covered payroll was 33 percent.

The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the Plan.

2. Illinois Municipal Retirement Fund

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

27


Funding Policy. As set by statute, the District's Regular plan members are required to contribute 4.5 percent of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer annual required contribution rate for calendar year 2013 was 11.18 percent. The District also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute.

Annual Pension Cost and Net Pension Asset. The required contribution for calendar year 2013 was $199,756. The District's annual pension cost and net pension asset for the year ended December 31, 2013 were as follows:

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

Annual pension cost Contributions made

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

Net pension asset at end of year

Three Year Trend Information for the Regular Plan.

Fiscal Annual Year Pension

Ended Cost

12/31113 $ 134,066 12/31112 204,820 12/31111 199,592

$ 199,756 (65,690)

134,066 199,756

65,690 875,879

$ 941,569

Net Pension

Percentage Asset Contributed (Obligation)

149.00 % $ 941,569 527.63 875,879 100.00

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

28


Funded Status and Funding Progress. As of December 31, 2013, the most recent actuarial valuation date, the Regular plan was 103.78 percent funded. The actuarial accrued liability for benefits was $4,023,899 and the actuarial value of assets was $4,176,054, resulting in an overfunded actuarial accrued liability (VAAL) of $152,155. The covered payroll for calendar year 2013 (annual payroll of active employees covered by the plan) was $1,786,726. Because the plan is overfunded, there is no ratio for the VAAL to the covered payroll.

The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the Regular plan.

3. Retiree Health Insurance Plan

Plan Description. The Retiree Health Insurance Plan (RHIP) is a single-employer defined benefit healthcare plan administered by the District. Employees who retire under the Orland Fire Protection District Firefighters' Pension Fund and their spouses and dependents are entitled to participate in the health insurance plan provided for active employees. Such coverage is provided for retired employees and their spouse and dependents until they reach age 65. Retired employees are required to pay 50% of the premiums for such coverage and the District pays the balance of the costs. Two PPO plans and an HMO plan are available for retired employees. The District accounts for the plan as a retiree health insurance trust fund. The Retiree Health Insurance Fund issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained at the Fund's administrative office, located at 9790 West 151 st Street, Orland Park, Illinois, 60462.

Funding Policy. The contribution requirements are established by the District, using an actuarial study that is based on projected pay-as-you-go financing. For fiscal year 2013, the District contributed $1,235,000 to the plan. Plan members receiving benefits contributed $0. At December 31,2013, $8,721,268 was held in an irrevocable trust to fund current and future retiree health insurance claims.

Annual OPEB Cost and Net OPEB Asset. The District's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters ofGASB No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the District's net OPEB asset:

29


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

Annual OPEB cost (expense) Contributions made

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

Net OPEB asset at end of year

$ 1,234,355 (15,626) 31,471

1,250,200 1,235,000

15,200 307,742

$ 292,542

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

Fiscal Annual Percentage of Net Year OPEB AnnualOPEB OPEB

Ended Cost Cost Contributed Asset

12/31/13 $ 1,250,200 98.78 % $ 292,542 12/31112 1,220,997 111.28 307,742 12/31/11 1,330,425 25.80 169,992

Funded Status and Funding Progress. As of December 31,2012, the most recent actuarial valuation date, the plan was 36 percent funded. The actuarial accrued liability for benefits was $19,979,857, and the actuarial value of assets was $7,265,203, resulting in an unfunded actuarial accrued liability (VAAL) of $12,714,654. The covered payroll (annual payroll of active employees covered by the plan) was $15,925,073, and the ratio of the VAAL to the covered payroll was 80 percent.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedules of funding progress and employer contributions, presented as required supplementary information following the notes to basic financial statements, present additional information related to the funded status of the plan.

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

30


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

E. Interfund Receivables and Payables

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

Receivable Fund Payable Fund Amount

General Fund Capital Projects Fund $ 736,747 Ambulance Fund General Fund 3,789,284 Nonmajor governmental fund General Fund 11,706

Total $ 4,537,737

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

F. Interfund Transfers

Transfer in Transfer out Amount

Capital Projects Fund Ambulance Fund $ 1,000,000 Other governmental fund General Fund 1,071,600

Total $ 2,071,600

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

31


G. Long-term Liabilities

Long-term liability activity for the year ended December 31,2013 was as follows:

Beginning Balance Additions Reductions

Bonds payable: General obligation bonds $ 4,165,000 $ $ 905,000 $ Issuance premium 37,949 8,858

Debt certificates: General obligation debt certificates 26,715,000 420,000 Issuance discount (309,751) (15,488)

Compensated absences 1.403,326 228.138 104,308

Total $ 32,011,524 ~ 228,138 ~ 1,422,678 ~

Ending Due Within Balance One Year

3,260,000 $ 985,000 29,091

26,295,000 445,000 (294,263)

1,527,156 120,000

30,816,984 ~ 1,550,000

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

General Obligation Bonds

General obligation bonds are direct obligations and pledge the full faith and credit ofthe District,

Denomination Bonds due each year Interest dates Interest rates Paying agent

Total original issue

Year Ending December 31.

2014 2015 2016

Total

$

$

Principal Due

985,000 1,115,000 1.160,000

3.260,000

32

$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

Interest Due

$ 130,400 $ 91,000 46.400

$ 267,800 $

Total Due

1,115,400 1,206,000 1.206.400

3,527,800


General Obligation Debt Certificates

General obligation debt certificates are direct obligations and pledge the full faith and credit of the District.

Principal due each year December 15th Interest dates December 15th and June 15th Interest rates 1.00% - 4.95% Paying agent The Bank of New York Mellon Trust Co.

Chicago, Illinois Total original issue $26,715,000

Year Ending Principal Interest Total December 31, Due Due Due

2014 $ 445,000 $ 1,055,960 $ 1,500,960 2015 520,000 1,050,398 1,570,398 2016 595,000 1,042,078 1,637,078 2017 680,000 1,030,773 1,710,773 2018 765,000 1,016,153 1,781,153 2019 860,000 997,410 1,857,410 2020 965,000 973,760 1,938,760 2021 1,070,000 944,328 2,014,328 2022 1,185,000 909,018 2,094,018 2023 1,305,000 867,543 2,172,543 2024 1,430,000 819,910 2,249,910 2025 1,555,000 766,285 2,321,285 2026 1,685,000 707,973 2,392,973 2027 1,820,000 640,573 2,460,573 2028 1,960,000 565,043 2,525,043 2029 2,120,000 468,023 2,588,023 2030 2,280,000 363,083 2,643,083 2031 2,445,000 250,223 2,695,223 2032 2,610,000 129,195 2,739,195

Total $ 26,295,000 $ 14,597,729 $ 40,892,729

33


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

Year Ending Principal Interest Total December 31, Due Due Due

2014 $ 1,430,000 $ 1,186,360 $ 2,616,360 2015 1,635,000 1,141,398 2,776,398 2016 1,755,000 1,088,478 2,843,478 2017 680,000 1,030,773 1,710,773 2018 765,000 1,016,153 1,781,153 2019 860,000 997,410 1,857,410 2020 965,000 973,760 1,938,760 2021 1,070,000 944,328 2,014,328 2022 1,185,000 909,018 2,094,018 2023 1,305,000 867,543 2,172,543 2024 1,430,000 819,910 2,249,910 2025 1,555,000 766,285 2,321,285 2026 1,685,000 707,973 2,392,973 2027 1,820,000 640,573 2,460,573 2028 1,960,000 565,043 2,525,043 2029 2,120,000 468,023 2,588,023 2030 2,280,000 363,083 2,643,083 2031 2,445,000 250,223 2,695,223 2032 2,610,000 129,195 2,739,195

Total $ 29,555,000 $ 14,865,529 $ 44.420,529

The legal debt margin of the District as of December 31,2013 is detennined as follows:

Assessed valuation - 2012 tax year (most current valuation available) $ 2,378,592.213

Statutory debt limitation (5.75% of assessed valuation) $ 136,769,052

Total debt outstanding 29,555,000

Legal debt margin $ 107,214,052

34


H. Fund Balances

As of December 31, 2013, fund balances were comprised of the following:

Capital Other Total General Ambulance Projects Governmental Governmental

Fund Fund Fund Fund Funds

Nonspendable: Prepaid items $ 157,416 $ $ $ $ 157,416

Restricted for: Emergency medical 22,420 22,420 Emergency rescue 332,883 332,883 General government 42,121 42,121 Tort immunity 1,306,292 1,306,292

Assigned to: Capital projects 3,677,127 3,677,127 Debt service 11,706 11,706 Emergency medical 3,709,651 3,709,651 Emergency rescue 238,700 238,700 General government 817,544 817,544 Tort immunity 141,619 141,619

Unassigned 5,792,567 5,792,567

Total $ 8,829.142 $ 3,732,071 $ 3,677,127 $ 11.706 $ 16.250,046

I. Encumbrances

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

Encumbrances Included in: Restricted Assigned

Fund Fund Balance Balance

General Fund $ 13,398 $ 119,586 Ambulance Fund 24,231 Capital Projects Fund 232,210

Total $ 13,398 $ 376,027

35


J. Risk Management

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

K. Tort Immunity Expenditures

Tort immunity expenditures for the year ended December 31, 2013 are summarized as follows:

Property and liability insurance Risk management salaries and benefits Other

Total

L. Labor Concentrations

$

$

1,128,657 628,407

27,183

1.784.247

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

M. Change in Accounting Principle

During the year ended December 31, 2013, the District implemented GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. The objective of this Statement is to either (a) properly classify certain items that were previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of resources or (b) recognize certain items that were previously reported as assets and liabilities as outflows of resources (expenses or expenditures) or inflows of resources (revenues ).

The implementation of GASB 65 resulted in the restatement of beginning net position in the governmentwide financial statements. Under GASB 65, deferred debt issuance costs are expensed as incurred. Prior to the issuance of GASB 65, debt issuance costs reported in the government-wide financial statements were deferred and amortized over the life of the related debt. The restatement of beginning net position is summarized as follows:

36


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

Net position at December 31,2012, as restated

N. Subsequent Events

$ 24,848,265 (171.193)

$ 24,677,072

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

37

REQUIRED SUPPLEMENTARY INFORMATION

Actuarial Valuation Date

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

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION -

FIREFIGHTERS' PENSION FUND DECEMBER 31, 2013

SCHEDULE OF FUNDING PROGRESS

Unfunded Actuarial

Actuarial Actuarial Accrued Value of Accrued Liability Funded

Assets Liability (UAAL) Ratio Covered Payroll

$103,425,685 $107,303,345 $ 3,877,660 96.40 $ 11,687,616 68,179,006 93,554,592 25,375,586 72.90 10,703,903 64,169,486 83,897,747 19,728,261 76.49 10,593,244 55,103,492 78,216,004 23,112,512 70.45 10,244,016 48,697,459 68,189,670 19,492,211 71.41 9,863,009 51,857,470 62,557,991 10,700,521 82.90 9,350,844

Information provided above is the most current information available.

SCHEDULE OF EMPLOYER CONTRIBUTIONS

Required Percentage Year Ended Contribution Contributed

December 31,2013 $ 3,386,334 80.31 December 31, 2012 4,324,815 672.30 December 31, 2011 3,625,665 94.50 December 31, 2010 3,728,549 81.30 December 31, 2009 3,331,538 75.00 December 31,2008 2,695,098 93.63

38

UAAL as a Percentage of Covered

Payroll

33.18 237.07 186.23 225.62 197.63 114.43


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


ILLINOIS MUNICIPAL RETIREMENT FUND DECEMBER 31, 2013


Unfunded Actuarial Accrued

Value of Accrued Liability Funded Assets Liability (VAAL) Ratio

$ 4,176,054 $ 4,023,899 $ (152,155) 103.78 $ 3,542,035 3,685,467 143,432 96.11 2,246,371 3,122,250 875,879 71.95 2,360,455 3,319,157 958,702 7l.12 2,020,259 2,918,383 898,124 69.23 1,786,915 2,525,854 738,939 70.74

UAAL as a Percentage

Covered of Covered Payroll Payroll

1,786,726 N/A 1,801,408 7.96 1,728,072 50.69 1,650,019 58.10 1,476,760 60.82 1,254,846 58.89

On a market value basis, the actuarial value of assets as of December 31, 2013 is $4,734,728. On a market basis, the funded ratio would be 117.67%.

The actuarial value of assets and accrued liability cover active and inactive members who have service credit with Orland Fire Protection District, lllinois. They do not include amounts for retirees. The actuarial accrued liability for retirees is 100% funded.


Required Percent Year Ended Contribution Contributed

December 31, 2013 $ 199,756 100.00 December 31,2012 204,820 526.17 December 3 1, 2011 199,592 100.00 December 3 1, 2010 188,762 100.00 December 31, 2009 163,920 100.00 December 31, 2008 136,778 100.00

39


December 31, 2012 December 31, 2011 December 31, 2009 December 31, 2007


RETIREE HEALTH INSURANCE PLAN DECEMBER 31,2013


Unfunded Actuarial

Actuarial Actuarial Accrued Value of Accrued Liability Funded Assets Liability (VAAL) Ratio

Covered Payroll

$ 7,265,203 $ 19,979,857 $ 12,714,654 36.36 $ 15,925,073 5,774,041 20,405,022 14,630,981 28.30 16, I 06, 119 3,922,615 18,392,257 14,469,642 21.33 14,020,649

16,806,907 16,806,907 0.00 11,633,789

Information provided above is the most current information available.


Required Percentage Year Ended Contribution Contributed

December 3 I, 2013 $ 1,234,355 100.05 December 31, 2012 1,291,437 105.21 December 3 1, 2011 1,390,511 25.80 December 31, 2010 1,358,747 113.41 December 31, 2009 1,519,754 1Ol.00 December 31, 2008 1,530,777 165.60

40

UAAL as a Percentage of Covered

Payroll

79.84 90.84

103.20 144.47

COMBINING AND INDIVIDUAL FUND AND FINANCIAL STATEMENTS AND SCHEDULES

MAJOR GOVERNMENTAL FUNDS

GENERAL FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND

BALANCE SHEET ACCOUNTS DECEMBER 31, 2013

WITH COMPARATIVE TOTALS FOR DECEMBER 31,2012

Tort Emergency Totals Corl!orate Liability Rescue Eliminations 2013 2012

ASSETS

Cash and investments $ 11,750,349 $ $ $ $ 11,750,349 $ 14,457,886 Receivables:

Property taxes 14,418,872 3,037,864 1,042,251 18,498,987 19,185,913 Accounts 399,614 399,614 274,601

Due from other funds 736,747 1,447,911 571,583 (2,019,494) 736,747 Due from fiduciary trust fund 9,229 9,229 Prepaid items 6,190 151.226 157,416 5,315

Total assets $ 27,321.001 $ 4,637,001 $ 1.613,834 $ (2,019,494) $ 31,552,342 $ 33,923,715

LIABILITIES

Accounts payable $ 264,865 $ $ $ $ 264,865 $ 429,555 Accrued expenditures 326,549 326,549 286,734 Due to other funds 5,820,484 (2,019,494) 3,800,990 4,502,948 Due to fiduciary trust fund 309,245

Total liabilities 6,411.898 (2,019,494) 4,392,404 5.528,482


Unavailable revenue - property taxes 14,250,681 3,037,864 1.042,251 18,330,796 19,090,166

FUND BALANCES

Nonspendable 6,190 151,226 157,416 5,315 Restricted 42,121 1,306,292 332,883 1,681,296 1,810,994 Assigned 817,544 141,619 238,700 1,197,863 684,302 Unassigned 5,792.567 5,792,567 6,804,456

Total fund balances 6,658,422 1.599,137 571,583 8,829,142 9,305,067

Total liabilities, deferred inflows of resources, and fund balances ~ 27a321,001 $ 4,637,001 $ 1,613,834 $ (2,019,494) ~ 31,552,342 ~ 33,923,715

41

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING SCHEDULE OF GENERAL FUND REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 2013

WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2012

Tort Emergency Totals Corl!orate Liabilitl:: Rescue 2013 2012

Revenues: Property taxes $ 15,720,406 $ 2,041,644 $ 1,197,871 $ 18,959,921 $ 19,431,074 Charges for service 425,306 57,598 482,904 532,121 Grant proceeds 64,944 64,944 164,190 Investment income 38,756 38,756 27,348 Personal property replacement taxes 53,633 53,633 36,696 Other 148,871 17,425 1,752 168,048 166,802

Total revenues 16,451,916 2,059,069 1,257,221 19,768,206 20,358,231


Personnel: Compensation and salaries 8,329,929 628,407 972,098 9,930,434 10,943,831 Payroll taxes 182,638 46,202 228,840 235,372 Education and seminars 46,460 22,798 3,656 72,914 50,575 Health and life insurance 1,649,888 168,719 1,818,607 2,201,306 Pension contribution 2,719,548 2,719,548 29,075,713

Commodities: Heat, light and power 59,446 9,908 69,354 59,936 Operational supplies 404,900 6,136 55,979 467,015 539,007 Postage and printing 6,236 6,236 10,830 Protective clothing 79,992 6,819 86,811 141,219 Repairs and maintenance 483,573 1,093 92,219 576,885 269,222 Telephone 18,100 6,489 24,589 25,238 Vehicle maintenance 52,211 18,700 70,911 68,687

Contractual: Insurance 1,128,657 1,128,657 1,181,120 Professional services 310,441 8,406 83,822 402,669 394,090

Other 127,185 127,185 111,974 Debt service:

Principal 420,000 420,000 Interest 1,021,876 1,021,876 Debt certificate issuance costs 452,153

Capital outlay 2,086

Total expenditures 15,912,423 1,795,497 1,464,611 19,172,531 45,762,359

Excess (deficiency) of revenues over (under) expenditures 539,493 263,572 (207,390) 595,675 (25,404,128)

42

Tort Emergency Totals Corl!orate Liabilitl: Rescue 2013 2012

Other financing sources (uses): Issuance of debt certificates 26,715,000 Transfers out (l,071,600) (l,071,600) (1,689,425)

Total other financing sources (uses) (l,071,600) (1,071,600) 25,025,575

Net change in fund balances (532,107) 263,572 (207,390) (475,925) (378,553)

Fund balances at beginning of year 7,190,529 1,335,565 778,973 9,305,067 9,683,620

Fund balances at end of year $ 6,658,422 ~ 1,599,137 ~ 571,583 ~ 8,829,142 $ 9,305,067

43

CORPORATE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND

BALANCE SHEET DECEMBER 31, 2013

WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2013 ASSETS

Cash and investments $ 11,750,349 Receivables:

Property taxes 14,418,872 Accounts 399,614

Due from other funds 736,747 Due from fiduciary trust fund 9,229 Prepaid items 6,190

Total assets $ 27,321.001

LIABILITIES

Accounts payable $ 264,865 Accrued expenditures 326,549 Due to other funds 5,820,484 Due to fiduciary trust fund

Total liabilities 6.411.898


Unavailable revenue - property taxes 14,250,681

FUND BALANCES

Nonspendable 6,190 Restricted 42,121 Assigned 817,544 Unassigned 5,792,567

Total fund balances 6,658.422

Total liabilities, deferred inflows of resources, and fund balances $ 27,321,001

44

2012

$ 14,457,886

15,929,120 274,601

5,315

$ 30,666,922

$ 429,555 286,734

6,581,096 309,245

7,606,630

15,869,763

5,315

380,758 6,804.456

7,190,529

$ 30,666,922

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CORPORATE FUND

SCHEDULE OF REVENUES, EXPENDITURES, ENCUMBRANCES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31,2012

2013 Original Final Variance with Budget Budget Actual Final Budget

Revenues: Property taxes $ 16,947,790 $ 15,765,321 $ 15,720,406 $ (44,915) Charges for service 442,033 442,033 425,306 (16,727) Grant proceeds 64,944 64,944 Investment income 21,719 21,719 38,756 17,037 Personal property replacement

taxes 45,000 45,000 53,633 8,633 Other 260,684 260,684 148,871 011.813)

Total revenues 17,717,226 16.534,757 16.451.916 (82,841)


Personnel: Compensation and salaries 8,202,811 8,162,527 8,329,929 (167,402) Payroll taxes 195,834 195,834 182,638 13,196 Education and seminars 87,015 82,015 46,537 35,478 Health and life insurance 1,988,217 1,693,217 1,649,888 43,329 Pension contribution 4,025,977 4,170,653 2,719,548 1,451,105

Commodities: Heat, light and power 98,400 98,400 59,446 38,954 Operational supplies 266,656 318,037 306,403 11,634 Postage and printing 22,000 22,000 6,236 15,764 Protective clothing 73,350 98,350 99,153 (803) Repairs and maintenance 245,720 296,156 299,431 (3,275) Telephone 27,864 27,864 18,100 9,764 Vehicle maintenance 43,995 52,995 52,211 784

Contractual: Professional services 170,322 320,322 310,441 9,881

Other 173,485 152,485 129,414 23,071 Debt service:

Principal 420,000 (420,000) Interest 1,021,876 (1,021,876) Debt certificate issuance costs

Capital outlay

Total expenditures and encumbrances 15,621,646 15,690,855 15,651,251 39,604

45

2012

Actual

$ 16,425,332 449,088 164,190

19,845

36,696 164.415

17.259.566

9,395,206 188,089

15,661 2,005,269

29,075,713

51,375 526,698

10,830 118,408 53,545 18,582 50,574

314,882 108,105

452,153 2,086

42,387,176

2013 2012 Original Final Variance with Budget Budget Actual Final Budget Actual

Excess (deficiency) of revenues over (under) expenditures and encumbrances 2,095.580 843,902 800,665 (43.237) (25,127,610)

Other fmancing sources (uses): Issuance of debt certificates 26,715,000 Transfers out 0.315.543) (1.071.600) (1.071.600) 0.349.425)

Total other fmancing sources (uses) (1.315,543) (1.071.600) (1.071.600) 25,365.575

Net change in fund balances 780,037 (227,698) (270,935) (43,237) 237,965

Fund balances at beginning of year (Non-GAAP budgetary basis) 6,809,771 6,809,771 6,809,771 6.571.806

Fund balances at end of year (Non-GAAP budgetary basis) 7,589,808 6,582,073 6,538,836 (43,237) 6,809,771


Current year encumbrances included in expenditures 119,586 119,586 380,758

Fund balances at end of year (GAAP basis) $ 71589.808 ~ 6.582.073 ~ 6.658.422 ~ 76.349 ~ 7.190.529

46

TORT LIABILITY FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND



2013 ASSETS

Property taxes receivable $ 3,037,864 Due from other funds 1,447,911 Prepaid items 151,226

Total assets $ 4,637,001


Unavailable revenue - property taxes $ 3,037,864

FUND BALANCES

Nonspendable 151,226 Restricted 1,306,292 Assigned 141.619

Total fund balances 1,599,137

Total deferred inflows of resources and fund balances $ 4,637,001

47

2012

$ 1,954,565 1,328,857

$ 3.283,422

$ 1,947,857

1,211,371 124,194

1.335,565

$ 3,283,422

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS TORT LIABILITY FUND


YEAR ENDED DECEMBER 31, 2013 WITH COMP ARA TIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012


Revenues: Property taxes $ 1,179,205 $ 2,041,003 $ 2,041,644 $ 641 Other 7,051 7,051 17,425 10,374

Total revenues 1,186,256 2,048,054 2,059,069 11,015


Personnel: Compensation and salaries 614,979 614,979 628,407 (13,428) Education and seminars 12,300 12,300 5,298 7,002

Commodities: Operational supplies 19,000 19,000 12,386 6,614 Repairs and maintenance 3,400 3,400 1,093 2,307

Contractual: Insurance 1,115,532 1,115,532 1,128,657 (13,125) Professional services 12,500 12,500 8,406 4,094

Total expenditures and encumbrances 1.777,711 1,777,711 1,784,247 (6.536)

Excess (deficiency) of revenues over (under) expenditures and encumbrances (591,455) 270,343 274,822 4,479

Fund balances at beginning of year (Non-GAAP budgetary basis) 1,318,065 1,318,065 1,318,065

Fund balances at end of year (Non-GAAP budgetary basis) 726,610 1,588,408 1,592,887 4,479


Current year encumbrances included in expenditures 6,250 6,250

Fund balances at end of year (GAAP basis) ~ 726,610 ~ 1,588,408 $ 1,599,137 $ 10,729

48

2012

Actual

$ 1,688,042 5,853

1,693,895

644,305 17,772

12,100

1,181,120 7,156

1,862,453

(168,558)

1,486,623

1,318,065

17,500

$ 1,335,565

EMERGENCY RESCUE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND



2013 ASSETS

Property taxes receivable $ 1,042,251 Due from other funds 571,583



Unavailable revenue - property taxes $ 1,042,251

FUND BALANCES

Restricted 332,883 Assigned 238,700

Total fund balances 571,583

Total deferred inflows of resources and fund balances $ 1,613,834

49

2012

$ 1,302,228 749,291

$ 2,051,519

$ 1,272,546

599,623 179,350

778,973

$ 2,051,519

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS EMERGENCY RESCUE FUND


YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012


Revenues: Property taxes $ 1,198,858 $ 1,195,898 $ 1,197,871 $ 1,973 Charges for service 88,579 88,579 57,598 (30,981) Other 4.298 4,298 1.752 (2,546)

Total revenues 1.291.735 1.288,775 1.257,221 (31.554)


Personnel: Compensation and salaries 871,784 923,784 972,098 (48,314) Payroll taxes 45,829 45,829 46,202 (373) Education and seminars 10,725 4,725 3,656 1,069 Health insurance 205,464 184,464 168,719 15,745

Commodities: Heat, light and power 16,402 16,402 9,908 6,494 Operational supplies 61,046 58,046 37,517 20,529 Protective clothing 5,903 7,903 8,361 (458) Repairs and maintenance 40,987 63,987 66,089 (2,102) Telephone 9,980 9,980 6,489 3,491 Vehicle maintenance 15,757 18,757 18,700 57

Contractual: Professional services 42,696 83,696 83,822 (26)

Total expenditures and encumbrances 1,326,573 1,417,573 1,421,561 (3,988)

50

2012

Actual

$ 1,317,700 83,033 4,037

1.404,770

904,320 47,283

3,615 196,037

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

18,113

72,052

1,323,347


Excess (deficiency) of revenues over (under) expenditures and encumbrances (34,838) (128,798) (164,340) (35,542) 81,423

Other fmancing uses: Transfers out (250,000) (340,000)

Net change in fund balances (284,838) (128,798) (164,340) (35,542) (258,577)

Fund balances at beginning of year (Non-GAAP budgetary basis) 728,775 728,775 728,775 987,352

Fund balances at end of year (Non-GAAP budgetary basis) 443,937 599,977 564,435 (35,542) 728,775


Current year encumbrances included in expenditures 7,148 7,148 50,198

Fund balances at end of year (GAAP basis) ~ 443.937 ~ 599.977 ~ 571 a583 ~ (28a394) ~ 778.973

51

AMBULANCE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND



2013 ASSETS

Receivables: Property taxes $ 8,082,985 Accounts 1,177,790

Due from other funds 3,789.284


LIABILITIES

Due to fiduciary trust fund $ 1.235,000


Unavailable revenue - property taxes 8,082,988

FUND BALANCES

Restricted 22,420 Assigned 3,709,651

Total fund balances 3,732,071

Total liabilities, deferred inflows of resources, and fund balances $ 13,050.059

52

2012

$ 7,128,144 878,635

3,516,683

$ 11.523.462

$

7,124,910

4.398.552

4.398,552

~ 11 a523,462

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS AMBULANCE FUND


YEAR ENDED DECEMBER 31,2013 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012


Revenues: Property taxes $ 6,878,693 $ 7,196,878 $ 7,210,222 $ 13,344 Charges for service 2,138,681 2,138,681 2,835,327 696,646 Other 57.451 57.451 17,698 (39,753)

Total revenues 9,074,825 9.393,010 10,063,247 670.237


Personnel: Compensation and salaries 5,725,750 5,840,065 5,899,650 (59,585) Payroll taxes 208,274 208,274 206,710 1,564 Education and seminars 42,869 30,869 26,309 4,560 Health and life insurance 1,337,655 2,372,655 2,356,584 16,071

Commodities: Heat, light and power 49,202 49,202 29,720 19,482 Operational supplies 106,914 126,914 83,859 43,055 Protective clothing 46,346 62,346 63,661 (1,315) Repairs and maintenance 173,168 256,168 234,431 21,737 Telephone 38,157 31,157 24,811 6,346 Vehicle maintenance 60,248 72,248 71,499 749

Contractual: Billing services 100,000 100,000 116,816 (16,816) Professional services 164,647 342,647 321,850 20,797

Other 150,000 150,000 152,554 (2,554)

Total expenditures and encumbrances 8,203,230 9,642,545 9,588,454 54,091

53

2012

Actual

$ 7,180,586 2,269,230

30,810

9.480,626

5,936,696 212,738

21,875 1,321,787

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

95,871 275,686 131.912

8,355,458


Excess (deficiency) of revenues over (under) expenditures and encumbrances 871,595 (249,535) 474,793 724,328 1,125,168

Other fmancing uses: Transfers out (250,000) (1.000,000) (1,000,000) (1,123,000)

Net change in fund balances 621,595 (1,249,535) (525,207) 724,328 2,168

Fund balances at beginning of year (Non-GAAP budgetary basis) 4,233,047 4.233,047 4,233,047 4,230,879

Fund balances at end of year (Non-GAAP budgetary basis) 4,854,642 2,983,512 3,707,840 724,328 4,233,047


Current year encumbrances included in expenditures 24.231 24,231 165,505

Fund balances at end of year (GAAP basis) ~ 418541642 ~ 219831512 ~ 317321071 ~ 7481559 ~ 413981552

54

CAPITAL PROJECTS FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPITAL PROJECTS FUND



2013 ASSETS

Cash and investments $ 4,472,757 Due from other funds


LIABILITIES

Accounts payable $ 58,883 Due to other funds 736,747

Total liabilities 795,630

FUND BALANCES

Assigned 3,677,127

Total liabilities and fund balances $ 4,472,757

55

2012

$ 2,716,421 974,559

$ 3,690,980

$

3,690,980

$ 3,690,980

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CAPITAL PROJECTS FUND




Revenues: Grant proceeds $ $ $ 20,000 $ 20,000 Investment income 1,270 1,270 3,334 2,064 Other 127 127 (}27)

Total revenues 1.397 1.397 23.334 21.937


Commodities: Repairs and maintenance 55,500 115,000 115,000

Capital outlay 325,000 1.190,000 1.168.203 21.797

Total expenditures and encumbrances 380,500 1.305,000 1,168.203 l36,797

Deficiency of revenues under expenditures and encumbrances (379,103) (1,303,603) (1,144,869) 158,734

Other financing sources: Transfers in 750,000 1.000,000 1.000,000

Net change in fund balances 370,897 (303,603) (144,869) 158,734

Fund balances at beginning of year (Non-GAAP budgetary basis) 3.589,786 3.589,786 3.589,786

Fund balances at end of year (Non-GAAP budgetary basis) 3,960,683 3,286,183 3,444,917 158,734


Current year encumbrances included in expenditures 232.210 232,210

Fund balances at end of year (GAAP basis) ~ 3,9601683 ~ 312861183 ~ 316771127 ~ 390,944

56

2012

Actual

$ 3,262

3.262

228,648

228,648

(225,386)

1.753,000

1,527,614

2,062,172

3,589,786

101.194

~ 3a6901980

NONMAJOR GOVERNMENTAL FUND

DEBT SERVICE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND



2013 2012 ASSETS

Due from other funds $ 11, 706 =$ ===11=,7=0=6

FUND BALANCES

Assigned $ 11, 706 =$ ===11=,7=0=6

57

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEBT SERVICE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL



Revenues: Other $ 6,057 $ 6,057 $ $ (6,057)

Expenditures: Debt service:

Principal 905,000 905,000 905,000 Interest 166,600 166,600 166,600

Total expenditures 1.071.600 1,071,600 1.071.600

Deficiency of revenues under expenditures (1,065,543) (1,065,543) (1,071,600) (6,057)

Other fmancing sources: Transfers in 1.065,543 1.071.600 1.071.600

Net change in fund balances 6,057 (6,057)

Fund balances at beginning of year 11.706 11.706 11.706

Fund balances at end of year ~ 11,706 ~ 17.763 ~ 11.706 ~ (61057)

58

2012

Actual

$ 5,027

860,000 198,850

1.058,850

(1,053,823)

1.059.425

5,602

6,104

~ 11.706

FIDUCIARY FUNDS

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING STATEMENT OF NET POSITION

PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS DECEMBER 31,2013

WITH COMPARATIVE TOTALS FOR DECEMBER 31,2012

Retiree Firefighters' Health Totals

Pension Insurance 2013 2012 ASSETS

Cash $ 2,420,603 $ 252,190 $ 2,672,793 $ 26,649,063 Accrued interest receivable 241,385 241,385 166,826 Due from other funds 1,235,000 1,235,000 309,245 Investments, at fair value 117,864,786 7,234,078 125,098,864 83,587,805 Prepaid items 5.192 5.192 5,142

Total assets 120.531.966 8,721.268 129,253.234 110,718,081

LIABILITIES

Accounts payable 27,275 27,275 27,193 Due to other funds 9,229 9,229

Total liabilities 36.504 36,504 27,193

NET POSITION

Held in trust for pension benefits and other purposes ~1201495,462 ~ 8,721,268 ~129,216,730 ~ 11 0,690a888

59

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS COMBINING STATEMENT OF CHANGES IN NET POSITION PENSION AND OTHER EMPLOYEE BENEFIT TRUST FUNDS

YEAR ENDED DECEMBER 31, 2013 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED DECEMBER 31, 2012

Retiree Firefighters' Health Totals

Pension Insurance 2013 2012


Employer $ 2,719,548 $ 1,235,000 $ 3,954,548 $ 5,058,874 Employer - from issuance

of debt certificates 25,375,586 Plan members 1,200,751 1,200,751 1,118,794 Other 100 100 549

Total contributions 3,920,399 1.235,000 5.155.399 31.553,803

Investment income 15,543,818 598,889 16,142,707 7,695,368 Less investment expense 075,665) (41.029) (216,694) (178,969)

Net investment income 15.368.153 557,860 15,926,013 7,516.399

Total additions 19,288,552 1,792,860 21.081.412 39,070,202

Deductions: Benefits 2,100,363 336,795 2,437,158 2,203,991 Administrative expenses 118.412 118.412 128.370

Total deductions 2,218,775 336,795 2,555.570 2.332,361

Change in net position 17,069,777 1,456,065 18,525,842 36,737,841

Net position at beginning of year 103.425,685 7,265,203 110,690,888 73,953,047

Net position at end of year $ 120.495,462 $ 8,721,268 $ 129,216,730 ~ 110a690,888

60

FIREFIGHTERS' PENSION FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND STATEMENT OF NET POSITION

DECEMBER 31, 2013 WITH COMPARATIVE AMOUNTS FOR DECEMBER 31, 2012

2013 ASSETS

Cash $ 2,420,603 Accrued interest receivable 241,385 Investments, at fair value 117,864,786 Prepaid items 5,192

Total assets 120,531,966

LIABILITIES

Accounts payable 27,275 Due to other funds 9,229

Total liabilities 36,504

NET POSITION

Held in trust for pension benefits and other purposes $ 120,495,462

61

2012

$ 26,328,501 166,826

76,952,409 5,142

103.452,878

27,193

27,193

$ 103,425,685

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FIREFIGHTERS' PENSION FUND

STATEMENT OF CHANGE IN NET POSITION YEAR ENDED DECEMBER 31, 2013

WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2013


Employer $ 2,719,548 Employer - from issuance of debt certificates Plan members 1,200,751 Other 100

Total contributions 3,920.399

Investment income 15,543,818 Less investment expense (175,665)

Net investment income 15.368,153

Total additions 19,288,552

Deductions: Benefits 2,100,363 Administrative expenses 118.412

Total deductions 2,218,775

Change in net position 17,069,777

Net position at beginning of year 103.425,685

Net position at end of year $ 120a495,462

62

2012

$ 3,700,127 25,375,586

1,118,794 549

30.195,056

7,3l3,116 045,938)

7,167,178

37,362.234

1,987,185 128,370

2,115.555

35,246,679

68.179,006

~ 1031425,685

RETIREE REALm INSURANCE FUND

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND

STATEMENT OF NET POSITION DECEMBER 31, 2013


2013 ASSETS

Cash $ 252,190 Due from other funds 1,235,000 Investments, at fair value 7.234,078


NET POSITION

Held in trust for health benefits and other purposes $ 8,721,268

63

2012

$ 320,562 309,245

6,635.396

$ 7,265.203

$ 7,265,203


Employer

Investment income

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RETIREE HEALTH INSURANCE FUND

STATEMENT OF CHANGE IN NET POSITION YEAR ENDED DECEMBER 31,2013

WITH COMPARATIVE AMOUNTS FOR THE YEAR ENDED DECEMBER 31, 2012

2013

$ 1.235,000

598,889 Less investment expense (41.029)

Net investment income 557,860

Total additions 1,792,860

Deductions: Benefits 336,795

Change in net position 1,456,065

Net position at beginning of year 7.265,203

Net position at end of year $ 8;721,268

64

2012

$ 1.358,747

382,252 (33,031)

349.221

1,707,968

216,806

1,491,162

5,774,041

~ 7,265,203

STATISTICAL SECTION

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS STATISTICAL SECTION

DECEMBER 31,2013

This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. The section is divided into five sections as follows:

Financial Trends - These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time.

Net Position by Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds

Page 65-66 67-68 69-70 71-72

Revenue Capacity - These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.

Schedule of Assessed Value and Estimated Actual Value of Taxable Property Schedule of Assessed Valuations, Tax Rates, Extensions and Collections Property Tax Rates - Direct and Overlapping Governments Principal Property Taxpayers

Page 73-74 75-76

77 78-79

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.

Outstanding Debt by Type Ratios of General Obligation Debt Outstanding Direct and Overlapping General Obligation Debt Legal Debt Margin Information

Page 80-81

82 83

84-85

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.

Demographic and Economic Statistics Principal Employers

Page 86-87 88-89

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.

Full-time Equivalent District Employees by Type Operating Indicators by Function

Page 90 91

Governmental activities:

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS

2013 2012

Net investment in capital assets $ 13,719,919 $ 12,577,376 $

Restricted ],996,258 2,118,736

Unrestricted 9,357.299 9,980,960

Total governmental activities net position $ 25,073,476 ~ 24,677,072 ~

65

2011 2010

12,313,750 $ 7,904,930

2,252,121 3,125,891

9,967.417 13,116,667

24,533,288 ~ 24,147,488

2009 2008 2007 2006 2005 2004

$ 10,455,243 $ 9,286,733 $ 7,857,463 $ 7,425,514 $ 5,839,986 $ 3,634,277

3,547,361 3,310,447 1,892,942 2,668,092 1,808,166 4,221,795

10,448,361 10,227,394 11,046,809 7,296,947 4,999,878

$ 24,450,965 $ 22,824,574 $ 20,797,214 $ 17,390,553 $ 12,648,030 $ 7,856,072

66

$

~

2009

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

323,l36

26,409,473

305,400 2,068,109

126,329 99,410

2,599248

(23,810225)

25,099,514 45,287 72,820

218,995

25.436,616

1,626,391

$

~

2008

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

321,042

24,619,246

291,748 1,266,483

99,849 74,845

1,732,925

(22,886,321 )

24,404,824 53,682

378,l31

77,044

24,9l3,681

2,027,360

$

~

2007

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

283,397

21,824,l33

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

1.123,050

(20,701,083)

23,057,944 54,494

893,718

lO1,588

24,lO7,744

3,4061661

$

$

2006

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

127,377

19,694,758

355,763 681,971

·59,619

1,097,353

08.597.405)

22,544,357 46,078

558,557 88,373

102.563

23,339,928

41742,523

68

$

~

2005

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

249.521

17,631,371

324,732 614,033

371,081

1,309,846

06,321,525)

20,664,254 42,928

223,223 85,972 97,106

21.1l3.483

4,791,958

$

~

2004

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

348,888

18,194,549

297,332 565,301

112,117

974,750

07219,799)

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

18,868,024

11648,225

General Fund: Reserved Unreserved Nonspendable Restricted Assigned Unassigned

Total General Fund

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS


2013 2012

$ $ $

157,416 5,315 1,681,296 1,810,994 1,197,863 684,302 5,792,567 6,804.456

$ 8,829,142 $ 9,305,067 $

All other governmental funds: Reserved $ $ $ Unreserved Restricted 22,420 Assigned 7,398.484 8,101.238

Total all other governmental funds $ 7,420,904 ~ 8al0l;238 ~

2011 2010

$

458,540 341,371 2,082,129 1,798,986

837,788 538,714 6,305,163 6,332,368

9,683,620 $ 9,011.439

$

6,717,040 10,389,995

61717;040 ~ 10,389,995

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

69

2009 2008 2007

$ 2,158,895 $ 2,009,745 $ 1,402,139 $ 8,138,241 7,746,835 9,230,029

2006

559,903 $ 7,129,834

2005 2004

417,103 $ 221,583 5,559,846 3,633,461

$ lO.297,136 $ 9,756,580 $ 10,632,168 $ 7,689,737 $ 5,976,949 $ 3,855,044

$ 1,220,121 $ 2,720,495 $ 2,054,995 $ 1,272,320 $ 1,286,405 $ 1,241,220 9,509,945 9,732,715 10,697,837 2,846,283 2,060,178 1,625,441

$ 10,730,066 $ 12.453,210 $ 12,752,832 $ 4,118,603 $ 3.346.583 $ 2,866,661

70

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


2013 2012 2011 2010

Revenues: Property taxes $ 26,170,143 $ 26,611,660 $ 25,919,259 $ 24,473,283 Charges for service 3,318,231 2,801,351 2,559,540 2,459,966 Grant proceeds 84,944 164,190 79,036 169,462 Investment income 42,090 47,768 47,636 61,362 Personal property replacement taxes 53,633 36,696 49,442 48,831 Intergovernmental Other 185,746 551,891 530,155 753,952

Total revenues 29,854,787 30,213,556 29,185,068 27,966,856


Personnel: Compensation and salaries 15,830,084 16,880,527 15,683,055 14,382,321 Payroll taxes 435,550 448,110 422,376 385,472 Education and seminars 97,058 76,483 59,741 75,123 Health and life insurance 4,175,191 3,889,503 3,335,869 4,568,289 Pension contribution 2,719,548 29,075,713 3,763,590 3,030,592

Commodities: Training and education Heat, light, and power 99,074 85,622 148,303 129,751 Operational supplies 627,651 663,404 479,043 448,580 Postage and printing 6,236 10,830 8,834 31,880 Protective clothing 138,365 224,558 157,547 113,170 Repairs and maintenance 890,085 433,251 456,367 875,240 Telephone 49,400 50,684 64,144 62,008 Vehicle maintenance 142,410 137,943 123,953 123,402

Contractual: Billing services 116,816 95,871 88,753 92,959 Insurance 1,128,657 1,181,120 977,041 1,377,183 Professional services 724,519 669,776 478,999 367,445

Other 279,739 222,812 304,954 276,883 Debt service:

Principal 1,325,000 860,000 1,858,330 850,554 Interest 1,188,476 198,850 258,440 298,333 Bond / debt certificate issuance costs and fees 452,153

Capital outlay 1,037,187 265,701 3,516,503 2,103,439

Total expenditures 31,011,046 55,922,911 32,185,842 29,592,624

Excess (deficiency) of revenues over (under) expenditures (1,156,259) (25,709,355) (3,000,774) (1,625,768)

Other financing sources (uses): Proceeds from debt issuance 26,715,000 Transfers in 2,071,600 2,812,425 130,000 2,575,975 Transfers out (2,071,600) (2,812,425) . (130,000) (2,575,975)

Total other financing sources (uses) 26,715,000

Net change in fund balances $ (1,156259) $ 1,005,645 $ 0,000,774) $ (1,625,768)

Debt service as a percentage of non-capital expenditures 8.38 % 2.71 % 6.95 % 4.13 % = = = =

71

2009 2008 2007 2006 2005 2004

$ 25,099,514 $ 24,404,824 $ 23,057,945 $ 22,544,357 $ 20,664,255 $ 18,614,521 2,499,838 1,658,080 1,048,200 1,115,542 1,006,068 924,214

99,410 74,845 74,850 59,619 371,081 72,820 378,131 893,718 558,557 223,227 63,170 45,287 53,682 54,494 46,078 42,928 31,229

965 15,977 6,230 8,875 7,770 762,922 429,293 423,794 429,711 391,113 446,875

28,579,791 26,999,820 25,568,978 24,760,094 22,707,547 20,087,779

13,954,484 12,358,943 11,627,351 11,059,533 9,691,026 9,184,223 380,756 326,633 272,820 304,682 221,494 227,364

91,441 79,852 69,052 54,061 40,148 28,975 4,640,198 5,425,750 2,774,237 2,680,381 2,490,264 2,128,332 2,541,961 3,073,319 2,270,452 2,987,966 1,718,657 1,747,270

7,494 4,315 2,777 2,978 4,484 120,917 135,884 123,919 105,693 85,674 95,785 562,270 533,132 541,934 693,576 281,511 300,775 39,036 7,629 10,175 18,336 6,758 9,154

142,649 116,994 135,604 132,118 77,538 109,184 505,452 707,277 851,299 306,918 327,181 368,739

57,032 67,377 84,367 66,883 50,449 62,520 74,812 124,986 110,535 89,188 66,893 49,268

103,297 40,882 31,303 31,554 32,526 29,990 1,060,402 1,091,137 1,108,913 1,087,870 958,638 751,095

321,747 415,159 440,070 297,411 217,538 159,558 291,004 223,843 305,939 289,000 137,633 188,731

799,116 660,000 590,000 1,540,000 2,500,000 2,105,274 310,844 321,726 273,108 136,537 260,297 345,671

50 79,725 4,670,961 2,456,963 377,477 390,802 938,517 1,653,428

30,668379 28,175,030 22,082595 22,275,286 20,105,720 19549,820

(2,088588) (1,175,210) 3,486383 2,484,808 2,601,827 537,959

906,000 8,090,277 1,187,642 1,855,000. 1,320,000 5,174 1,156,947 136,000 264,000

(1,855,000) (1,320,000) (5,174) (1,156,947) (136,000) (264,000)

906,000 8,090,277 1,187,642

$ ( 1,182588) $ (1,175,210) $ 11,576,660 $ 2,484,808 $ 2,601,827 $ 1,725,601

4.46 % 3.97 % 4.54 % 8.30 % 16.82 % 15.87 % = = = = = =

72

Levy Year

2012 $ 2011 2010 2009 2008 2007 2006 2005 2004 2003

Source:

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS SCHEDULE OF ASSESSED VALUE AND ESTIMATED

ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN LEVY YEARS

Assessed Value Residential Commercial Industrial Farm Railroad Property Property Property Property Property

1,624,500,909 $ 631,662,905 $ 121,650,047 $ 369,854 $ 408,498 1,761,730,402 685,022,544 131,926,418 401,097 443,006 2,061,365,996 801,531,367 154,364,500 469,316 518,352 2,060,640,966 801,249,450 154,310,206 469,151 518,170 1,886,724,268 869,929,570 183,446,572 787,568 407,715 1,708,768,401 709,458,743 166,868,345 737,880 354,862 1,599,048,504 639,536,175 162,636,923 741,526 300,730 1,546,073,930 627,882,083 161,002,677 837,103 237,360 1,296,116,607 524,980,250 147,670,792 931,699 213,577 1,227,704,543 491,517,971 141,251,879 1,027,623 201,250

Office of the Cook County Assessor

73

Total Assessed

Value

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

Estimated Total Actual Direct Value Rate

$ 9,561,940,696 $1.1263 10,369,684,337 1.0497 12,133,363,115 0.8782 12,129,095,531 0.8361 11,824,008,686 0.8507 10,396,476,689 0.9502 9,657,100,709 0.9741 9,390,853,275 0.9715 7,919,049,958 1.0622 7,484,047,129 1.0189

74

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS SCHEDULE OF ASSESSED VALUATIONS, TAX RATES,

EXTENSIONS AND COLLECTIONS DECEMBER 31, 2013

2012 2011 2010

Assessed valuation (1) $ 2,378,592,213 $ 2,579,523,467 $ 3,0.18,249,531

Tax rates: Corporate 0..50.0.0. 0..4980. 0..4192 Ambulance 0..30.0.0. 0..2710. 0..2190. Tort liability 0..0.879 0..0.666 0..0.653 Debt service 0..0.0.0.0. 0..0.0.0.0. 0..0.0.0.0. Firefighters' pension 0..1635 0..1361 0..1131 Illinois Municipal Retirement 0..0.0.87 0..0.129 0..0.0.70. Social Security 0..0.149 0..0.139 0..0.110. Audit 0..0.0.13 0..0.0.12 0..0.0.0.7 Fire and rescue 0..0.50.0. 0..0.50.0. 0..0.429

Total 1.1263 1.0.497 0..8782

Tax extensions: Corporate $ 11,892,961 $ 12,845,375 $ 12,652,50.2 Ambulance 7,135,777 6,990.,274 6,60.9,966 Tort liability 2,0.89,876 1,717,675 1,970.,916 Debt service 0. 0. 0. Firefighters' pension 3,889,256 3,512,470. 3,413,153 Illinois Municipal Retirement 20.6,0.0.0. 333,755 211,277 Social Security 355,350. 358,921 332,0.0.7 Audit 29,870. 30.,591 21,127 Fire and rescue 1.189,296 1.289,762 1,294,829

Total $ 26,788,386 $ 27,0.78,823 $ 26,50.5,777

Collections: Current $ 25,898,953 $ 26,193,587 $ 25,578,918 Subsequent 0. 20.1.981 420.,90.4

Total $ 25,898,953 $ 26.395,568 $ 25,999,822

Percent collected: Current 96.68 % 96.73 % 96.50. % Subsequent 0..0.0. 0..75 1.59

Total 96.68 % 97.48 % 98.0.9 %

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

Data Source

Office of the Cook County Clerk

75

2009

$ 3,0.17,187,943

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

0..8361

$ 12,0.11,425 6,921,429 1,725,831

0. 2,860.,294

211,20.3 295,684 21,120.

1.179,720.

$ 25,226,70.6

$ 24,235,274 339,0.50.

$ 24,574,324

96.0.7 % 1.34

97.41 %

2008 2007 2006 2005 2004 2003

$ 2,941.295,693 $ 2,586.188.231 $ 2.402,263,858 $ 2,336,033,153 $ 1.969,912,925 $ 1.861.703,266

0.4180 0.4288 0.4436 0.4136 0.4693 0.4537 0.2370 0.2554 0.2661 0.2482 0.2783 0.2513 0.0632 0.0791 0.0803 0.0810 0.0873 0.0817 0.0000 0.0326 0.0302 0.0673 0.0771 0.0693 0.0761 0.0973 0.0950 0.1049 0.0867 0.0982 0.0067 0.0048 0.0058 0.0052 0.0057 0.0054 0.0093 0.0108 0.0098 0.0094 0.0103 0.0103 0.0007 0.0008 0.0010 0.0010 0.0010 0.0011 0.0397 0.0406 0.0423 0.0409 0.0465 0.0479

0.8507 0.9502 0.9741 0.9715 1.0622 1.0189

$ 12,294,615 $ 11,089,575 $ 10,656,442 $ 9,661,833 $ 9,244,801 $ 8,446,547 6,970,870 6,605,124 6,392,424 5,798,034 5,482,267 4,678,460 1,858,898 2,045,674 1,929,018 1,892,187 1,719,733 1,521,011

0 843,911 725,484 1,572,150 1,518,510 1,290,923 2,238,326 2,515,888 2,282,151 2,450,499 1,707,914 1,828,192

197,066 124,137 139,331 121,474 112,285 100,531 273,540 279,308 235,422 219,587 202,901 191,755

20,589 20,689 24,023 23,360 19,699 20,478 1.167,694 1.049.992 1.016,158 955.438 916,009 891.755

$ 25,021.598 $ 24.574,298 $ 23.400.453 $ 22,694.562 $ 20,924,119 $ 18,969,652

$ 23,927,913 $ 23,606,984 $ 22,523,791 $ 21,934,801 $ 20,704,165 $ 18,149,651 791.691 609.110 795,986 548,398 530,876 503,639

$ 24,719,604 $ 24,216,094 $ 23.319,777 $ 22.483,199 $ 21,235,041 $ 18,653,290

95.63 % 96.06 % 96.25 % 96.65 % 98.95 % 95.68 % 3.16 2.48 3.40 2.42 2.54 2.65

98.79 % 98.54 % 99.65 % 99.07 % 101.49 % 98.33 %

76

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

LAST SIX YEARS

Levy year 2012 2011 2010 2009 2008

Overlapping governments: Cook County 0.531 0.462 0.423 0.394 0.415 Cook County Forest Preserve District 0.063 0.058 0.051 0.049 0.051 Consolidated Elections 0.000 0.025 0.000 0.021 0.000 Bremen Township 0.070 0.061 0.051 0.049 0.049 Bremen General Assistance 0.014 0.012 0.009 0.008 0.008 Bremen Road and Bridge 0.045 0.039 0.032 0.031 0.031 Orland Township 0.066 0.061 0.052 0.052 0.054 Orland General Assistance 0.007 0.007 0.006 0.006 0.000 Orland Road and Bridge 0.037 0.034 0.029 0.029 0.030 South Cook Mosquito Abatement District 0.014 0.012 0.010 0.009 0.009 Metropolitan Water Reclamation District 0.370 0.320 0.274 0.261 0.252 Village of Orland Hills 0.369 0.331 0.279 0.269 0.769 Village of Orland Hills SSA #1 0.235 0.237 0.250 0.250 0.250 Village of Orland Park 0.638 0.589 0.498 0.046 0.479 Village of Orland Park Library Fund 0.279 0.255 0.212 0.203 0.205 Acorn Public Library District 0.192 0.168 0.000 0.000 0.000 Orland Hills Public Library District 0.149 0.133 0.110 0.106 0.109 Mokena Community Park Bond 2005 0.049 0.046 0.056 0.055 0.055 Tinley Park Park District 0.455 0.411 0.359 0.353 0.351 School District 135 3.212 2.874 2.467 2.377 2.410 School District 140 4.399 3.910 3.710 3.564 3.654 School District 146 5.041 4.558 3.742 3.650 3.741 Consolidated High School 230 2.438 2.180 1.812 1.764 1.801 Moraine Valley Comm. College 524 0.346 0.311 0.256 0.247 0.247

Total overlapping governments 19.019 17.094 14.688 13.793 14.970

Orland Fire Protection District 1.126 1.050 0.879 0.837 0.851

Totals 20.145 18.144 15.567 14.630 15.821

Overlapping rates prior to 2007 are not currently available.

Source of information - Cook County Clerk's Office

77

2007

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

14.903

0.951

15.854

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL PROPERTY TAXPAYERS*

DECEMBER 31, 2013

Taxpayer

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

Dayton Hudson Home Depot Palos Primary Care Center

Total

Type of Business

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

coaxial cable, and pressure equipment Department store Home improvement store Health care facility

*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

78

2012 2003 Percentage of Percentage of Total District Total District

Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed

Value Rank Value Value Rank Value

$ 113,741,630 1 4.78 % $ 57,052,060 1 3.53 % 37,051,702 2 1.56 19,827,381 3 1.23 11,724,327 3 0.49 11,116,682 4 0.69 11,022,066 4 0.46 10,843,111 5 0.46 10,681,062 6 0.45 9,390,599 7 0.39 8,808,776 8 0.54 9,098,418 8 0.38 8,818,717 7 0.55 8,215,010 9 0.35 7,671,369 10 0.32

20,763,335 2 1.28

10,802,530 5 0.67 10,796,765 6 0.67 6,702,954 9 0.41 6,298,192 10 0.39

~ 229a439,294 9.64 % i 160,987!392 9.96 %

79

Fiscal Year

2013 $

2012

2011

2010

2009

2008

2007

2006

2005

2004

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS OUTSTANDING DEBT BY TYPE


General General Obligation

Obligation Debt Refunding Notes Bonds Certificates Notes Payable

3,289,091 $ 26,000,737 $ $

4,202,949 26,405,249

5,071,807

5,805,665 787,330

6,479,693 865,884

7,118,721

7,637,757

1,400,000

2,660,000 694,000 411,000

Fire Protection

Notes

$

346,000

453,000

582,000

732,000

877,000

1,017,000

1,152,000

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

80

Total Percentage Primary of Personal Per

Government Income Capita

$ 29,289,828 1.28 % $ 391

30,608,198 1.34 408

5,071,807 0.22 68

6,938,995 0.30 93

7,798,577 0.34 104

7,700,721 0.34 103

8,369,757 0.37 112

877,000 0.04 12

2,417,000 0.11 32

4,917,000 0.22 66

81

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS RATIOS OF GENERAL OBLIGATION DEBT OUTSTANDING


Percentage of Less Amount Estimated

General Available Actual Taxable Obligation in Debt Value of

Fiscal Year Debt Service Fund Total Property (ll

2013 $ 29,289,828 $ $ 29,289,828 0.32 % 2012 30,608,198 30,608,198 0.30 2011 5,071,807 5,071,807 0.04 2010 5,805,665 822,203 4,983,462 0.04 2009 6,479,693 816,352 5,663,341 0.05 2008 7,118,721 789,461 6,329,260 0.06 2007 7,637,757 752,868 6,884,889 0.07 2006 706,531 2005 1,400,000 1,051,356 348,644 2004 2,660,000 979,902 1,680,098 0.02

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

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

82

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

DECEMBER 31, 2013

2012 Equalized Assessed Outstanding Annlicable to District

Valuation Debt Percent Amount

Overlapping agencies: Cook County $ 135,877,043,126 $ 3,578,905,000 1.750 % $ 62,630,838 Cook County Forest Preserve 135,877,043,126 124,455,000 (3) 1.750 2,177,963 Metropolitan Water Reclamation

District 133,111,067,733 2,481,971,593 (1) 1.787 44,352,832

Municipalities: Village of Homer Glen 888,132,241 14,325,000 0.017 2,435 Village of Orland Park and Library 2,183,112,161 102,290,000 96.288 98,492,995

Library Districts: Acorn Public Library District 537,040,459 (3) 0.006

Park Districts: Mokena Comm Park Bond

District 2005 1,032,218,460 1,100,000 9.323 102,553 Tinley Park Park District 1,347,778,696 12,707,000 4.771 606,251

Schools: School District #135 2,064,808,688 8,915,000 (4) 99.743 8,892,088 School District #146 647,044,952 23,190,000 25.626 5,942,669 High School District #230 4,694,524,554 48,190,000 50.656 24,411,126 Community College #524 9,870,791,002 74,400,000 (2) 24.092 17,924.448

Total overlapping general obligation debt 265,536,198

Direct debt: Orland Fire Protection District 2,378,592,213 29,289,828 100.000 29,289,828

Total direct and overlapping general obligation debt ~ 294,826,026

(1) Includes IEPA Revolving Loan Fund Bonds. (2) Includes original principal amounts of outstanding General Obligation Capital Appreciation Bonds. (3) Excludes outstanding principal amounts of General Obligation Alternate Revenue Source Bonds which are expected to

be paid from sources other than general taxation. (4) Excludes outstanding debt certificates.

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

83

Debt limit

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS LEGAL DEBT MARGIN INFORMATION


Legal Debt Margin Calculation for December 31, 2013

Assessed value $ 2,378,592,213

Debt limit (5.75% of assessed value) 136,769,052 Additional debt limit authorized

Total statutory debt limit 136,769,052

Debt applicable to limit 29,555,000

Legal debt margin $ 107.214,052

2013 2012 2011

$ 136,769,052 $ 148,322,599 $ 173,549,348

Total net debt applicable to limit 29,555,000 30,880,000 5,025,000

Legal debt margin $ 107,214,052 $ 117,442,599 $ 168,524.348

Total net debt applicable to the limit as a percentage of debt limit 21.6094 % 20.8195 % 2.8954 %

84

2010

$ 173,488,307

6,883.330

$ 166,604,977

3.9676 %

2009 2008 2007 2006 2005 2004

$ 169,124,502 $ 148,705,823 $ 138,130,172 $ 134,321,906 $ 113,269,993 $ 107,047,938

7,733,884 7,627,000 8,287,000 877,000 2.417,000 4,917,000

$ 161.390,618 $ 141.078,823 $ 129,843,172 $ 133.444,906 $ 110,852,993 $ 102,130,938

4.5729 % 5.1289 % 5.9994 % 0.6529 % 2.1338 % 4.5933 %

85

Fiscal Population

Year (1)

2013 75,000

2012 75,000

2011 75,000

2010 75,000

2009 75,000

2008 75,000

2007 75,000

2006 75,000

2005 75,000

2004 75,000

Data Sources:

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS DEMOGRAPmC AND ECONOMIC STATISTICS


Personal

Income Per Capita Unemployment

(in thousands) Income (1) Rate

$2,728,050 $ 36,374 6.70 %

2,728,050 36,374 7.30

2,728,050 36,374 8.20

2,728,050 36,374 8.80

2,285,025 30,467 10.60

2,285,025 30,467 7.10

2,285,025 30,467 3.00

2,285,025 30,467 5.10

2,285,025 30,467 5.10

2,285,025 30,467 5.20

(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.

86

Median

Age (1)

36.6

36.6

36.6

36.6

41.4

41.4

41.4

41.4

41.4

41.4

Education

Level in

Years of School

Formal Enrollment

Schooling (1) (2)

14 8,602

14 8,793

14 8,956

14 9,100

14 9,327

14 9,500

14 9,504

14 N/A

14 9,410

14 9,338

87

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS PRINCIPAL EMPLOYERS

DECEMBER 31,2013

Taxpayer

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

Type of Business

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

Note: Percentage of total District employment is based on 2010 and 2000 census.

Note: 2012 is the most current information available.

Source: Phone survey

88

2012 2003 Approximate Percentage of Approximate Percentage of

Number Total District Number Total District Employed Rank Employment Employed Rank Employment

920 1 3.32 737 2 2.66 690 2 2.73 631 3 2.28 649 3 2.52 530 4 1.91 375 7 1.49 335 5 1.21 325 8 1.29 325 6 1.17 395 5 1.57 325 7 1.17 325 10 1.29 300 8 1.08 385 6 1.53 200 9 0.72 325 9 1.29 200 10 0.72

4,700 1 18.62 400 4 1.59

89

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

LAST SIX YEARS

2013 2012 2011 2010 2009

Sworn Personnel - Full-time: Chief Officers 6 6 7 7 7 Program Supervisor Lieutenants 3 3 3 3

..,

.)

LieutenantslParamedics 26 26 27 25 25 LieutenantslEMT -Bs 4 4 4 5 5 Program Supervisor Engineers 1 1 EngineerslParamedics 30 30 30 30 30 FirefighterslParamedics 44 38 38 41 42 FirefighterslEMT -Bs 3 2 2 2 2

Total Full-Time Sworn Personnel 116 109 111 114 115

Sworn Personnel - Fill-in: Sworn Personnel- Fill-In 5 15 14 10 10

Total Sworn Personnel 121 124 125 124 125

Support Services and Overtime: Administration 8 8 7 10 11 Fire Prevention and Public Education 3 5 5 6 6 Communications 15 15 15 15 16 Training and safety 2 2 1 1 1 EMS 1 1 1 1 1 Specialty Teams 2 1 1 1 1 Maintenance 4 4 4 4 3

Total Support Services and Overtime 35 36 34 38 39

Total 156 160 159 162 164

Source: District records

Detail of personnel by employment type is not available prior to 2008.

90

2008

9 3

26 4 1

30 42

2

117

6

123

8 6

17 1 1 1 3

37

160

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

Total call volume

Source: District records

ORLAND FIRE PROTECTION DISTRICT, ILLINOIS OPERATING INDICATORS BY FUNCTION

LAST SIX YEARS

2013 2012 2011 2010

2,760 2,804 2,490 2,417 2,096 2,063 2,018 1,864

731 616 634 706 637 589 685 540 536 555 565 532 535 530 612 596 450 383 434 442 365 411 275 475 268 294 253 258 121 148 149 206

8,499 8,393 81115 8,036

Operating indicators by function are not available prior to 2008.

91

2009 2008

2,357 2,177 1,847 1,869

745 707 473 964 614 771 524 247 399 461 513 566 218 253 277 267

7a967 81282

2013 annual financial audit

Documents

fund balances corporate

fund balances budget

actual general fund

actual ambulance fund

statement of changes

statement of revenues

debt service fund

actual tort liability