wheaton sanitary district [wheaton, illinois] audited ... · position can be an indicator of...

WHEATON SANITARY DISTRICT

[Wheaton, Illinois]

Audited Financial Statements And

Supplementary Financial Information

For The Years Ended April 30, 2016 and 2015

TABLE OF CONTENTS PAGE

Principal Officials i Independent Auditors' Report 1-3 Management’s Discussion and Analysis 4-10 FINANCIAL STATEMENTS

Statements of Net Position 11-12

Statements of Revenues, Expenses and Changes in Net Position 13

Statements of Cash Flows 14

Notes to the Financial Statements 15-26 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in Net Pension Liability and Related Ratios – Last Ten Calendar Years 27 Schedule of Contributions – Last Ten Calendar Years 28 SUPPLEMENTAL INFORMATION Combining Schedule of Revenues, Expenses and Changes in Net Position 29 Schedule of Operating Expenses – User Charge Fund - Budget and Actual 30-34 Schedule of Capital Outlays - Budget and Actual 35

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WHEATON SANITARY DISTRICT

PRINCIPAL OFFICIALS

April 30, 2016

LEGISLATIVE

BOARD OF TRUSTEES

Jeffrey R. Walker

Henry S. Stillwell III

William A. Kindorf III

ADMINISTRATIVE

Steve Maney, Executive Director

Sue Baert, Plant Superintendent

Diana Soltess, Administrative Services Director

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(630) 653-1616 MMAadvisors.com FAX (630) 653-1735

211 South Wheaton Avenue . Suite 300

Wheaton, Illinois 60187

Independent Auditor’s Report

Wheaton Sanitary District Wheaton, IL 60189

Report on the Financial Statements

We have audited the accompanying financial statements of the business-type activities of the Wheaton Sanitary District, as of and for the years ended April 30, 2016 and 2015 and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

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 audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 District’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 District’s internal control.

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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 opinion.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities of the Wheaton Sanitary District as of April 30, 2016 and 2015 and the respective changes in financial position and cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that management’s discussion and analysis on pages 4 through 10, the Schedule of Changes in Net Pension Liability and Related Ratios of the IMRF on page 27 and the Schedule of Contributions of the IMRF on page 28 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 District’s basic financial statements. The Combining Schedule of Revenues, Expenses and Changes in Net Position, the Schedule of Operating Expenses – User Charge Fund – Budget and Actual, and the Schedule of Capital Outlays – Budget and Actual are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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The supplemental information is the responsibility of management and was derived from and relates 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 supplemental information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Wheaton, Illinois September 30, 2016

WHEATON SANITARY DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS

APRIL 30, 2016 AND 2015

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Wheaton Sanitary District presents the following discussion and analysis of the District’s financial performance during the fiscal year ending on April 30, 2016. Readers are encouraged to consider the Management Discussion and Analysis, the financial statements, and the notes to the financial statements, to enhance their understanding of the District’s financial performance. Due to the adoption of new governmental accounting standards, only one year of financial data is presented in the financial statements. FINANCIAL HIGHLIGHTS

Total assets increased $4,649 thousand, and liabilities increased $3,160 thousand.

Total operating revenue increased $979 thousand or 14% Operating expenses increased $671 thousand or 11.8%

OVERVIEW OF THE FINANCIAL STATEMENTS This annual report includes this management’s discussion and analysis, the report of the independent auditor and the basic financial statements of the District. The financial statements include notes that provide greater detail on some of the information in the financial statements. REQUIRED FINANCIAL STATEMENTS The District’s financial statements report information using accounting methods similar to those used by private sector companies. These statements offer short and long-term financial information about its activities. The Statement of Net Position includes the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources and provides information about the nature and amounts of investments in resources (assets) and the obligations to creditors (liabilities). Deferred outflows (inflows) of resources provide information about the consumption (acquisition) of Net Position by the government that is applicable to a future reporting period. The Statement also provides the basis for evaluating the financial structure and assessing the liquidity and financial flexibility of the District. Current year revenue and expenses are accounted for in the Statement of Revenues, Expenses, and Changes in Net Position. This statement measures the success of the District’s operations over the past year and can be used to determine whether the District has successfully recovered all of its costs through its user fees and other charges, increased its reserves for future asset replacement, and its credit worthiness. The Statement of Cash Flows reports cash receipts, cash payments, and net changes in cash resulting from operations, investing, and financing activities. It provides answers to questions such as where did cash come from, what was cash used for, and what was the change in the cash balance.


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FINANCIAL ANALYSIS OF THE DISTRICT An important financial question for the District is “how did we do financially during the year?” The Statement of Net Position and the Statement of Revenues, Expenses, and Changes in Net Position report information about the District’s activities that will help answer that question. These two statements report the Net Position of the District and the changes in them. The net difference between the assets and deferred outflows of resources, and liabilities and deferred inflows of resources, is one way to measure the financial health of the District. Over time, increases or decreases of the District’s Net Position can be an indicator of whether its financial strength is improving or deteriorating. However, one needs to consider other non-financial factors such as changes in economic conditions, population growth, and new/changed government regulations. NET POSITION A summary of the District’s Statement of Net Position is given in Table A-1.

Table A-1 Statement of Net Position

(000’s)

FY 2016

FY 2015

Dollar Change

Total Percent Change

Current and Other Assets $5,773 $5,649 $124 2.2%

Capital Assets $34,760 $30,235 $4,525 15.0%

Total Assets $40,533 $35,884 $4,649 13.0%

Deferred Outflows of Resources $449 $411 $38 9.2%

Total Assets & Deferred Outflows of Resources $40,982 $36,295

$4,687

12.9%

Long Term Debt Outstanding $14,828 $12,218 $2,610 21.4%

Other Liabilities $2,216 $1,666 $550 33.0%

Total Liabilities $17,044 $13,884 $3,160 22.8%

Deferred Inflows of Resources $250 $250 $0 0.0%

Invested in Capital Assets, Net of Related Debt $19,944 $17,566

$2,378

13.5%

Unrestricted $3,744 $4,596 ($851) -18.5%

Total Net Position $23,688 $22,161 $1,527 6.9%

Total Liabilities, Deferred Inflows of Resources and Net Position $40,982 $36,295 $4,687 12.9%


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A condensed summary of the Changes in Net Position is given in Table A-2.

Table A-2

Condensed Statement of Revenues, Expenses and Changes in Net Position

(000’s)

FY 2015 FY 2015 Dollar

Change


Operating Revenues $7,981 $7,002 $979 14.0%

Non-Operating Revenues $10 $16 ($6) -37.5%

Total Revenues $7,991 $7,018 $973 13.8%

Operating Expense $6,368 $5,697 $671 11.8%

Non-Operating Expense $96 $114 $(18) -15.8%

Total Expenses $6,464 $5,811 $653 11.2%

Changes in Net Position $1,527 $1,207 $320 26.5%

Beginning Net Position $22,161 $20,954 $1,207 5.8%

Ending Net Position $23,688 $22,161 $1,527 6.9%


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CAPITAL ASSETS A condensed summary of capital assets is given in Table A–3.

Table A–3 Condensed Summary of Capital Assets

(000’s)

FY 2016 FY 2015 Dollar

Change


Land and Improvements $2,096 $1,521 $575 37.8%

Plant and Buildings $13,577 $12,742 $835 6.6%

Machinery and Equipment $13,158 $12,973 $185 1.4%

Sewers and Extensions $27,534 $27,472 $62 0.2%

Construction in Progress $6,141 $1,876 $4,265 227.3%

Accumulated Depreciation ($27,746) ($26,349) ($1,397) 5.3%

Net Property and Equipment $34,760 $30,235 $4,525 15.0%

Major construction in progress projects included the Tomahawk Lift Station Improvements, Aeration System Header Improvements, Intermediate Lift Station Improvements, and the Northside Interceptor Route Study. See Note 4, Changes in Capital Assets, for additional information on the District’s capital assets. DEBT ADMINISTRATION In June 2006, the District issued a $5,000,000 debt certificate which was committed to capital improvement projects identified in a 2006 facilities plan. The effective interest rate on the debt certificate is 4.235%, and the term is 15 years. Principal on the certificate is due annually in December and interest payments are due in June and December. In FY 2010, the District obtained a combination Water Pollution Control Loan Program (WPCLP) and American Recovery and Reinvestment (ARRA) loan totaling more than $17 million. Approximately $4.3 million was forgiven in fiscal year ending April 30, 2013. The remaining balance will be paid off over 20 years with interest at zero percent.


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In FY 2015, the District obtained an IEPA Loan of $4.7 million for upgrading the intermediate pump station. In addition, a $1 million grant was obtained from the Illinois Department of Economic Opportunity (DCEO), and $250,000 was used to make an initial payment against the $4.7 million Project. However, the grant is currently suspended, but the District is hopeful that the balance of the $750,000 grant will be taken off suspension. In FY 2016, the District applied for and anticipates receiving an IEPA loan of approximately $1,000,000 for engineering and construction costs related to replacement of bar screens, scheduled for completion in FY 2017. The District is in the final stages of negotiating easements for the Northside Interceptor Sewer Replacement. Design work is anticipated to be completed shortly after the easements are acquired. Construction is anticipated to start in 2017 at an estimated cost range of $35 to $40 million dollars. Borrowing for this project is anticipated from an IEPA revolving loan as the optimal funding mechanism because of the low interest rates offered compared to the bond market. The District continues to monitor and update its rate study with the services of Galardi-Rothstein Group to ensure that cash flow will be adequate to meet normal operating expenses and long term payment of loans. User charge rates are anticipated to be increased at close to 10% for the next few years. Although the District has taxing authority, a referendum would be required to levy taxes because the District did not levy taxes when tax caps went into effect. See Note 6, Long-Term Debt, for additional information on the District’s debt. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The methodology for establishing user charge rates, the major source of revenue for the operating and capital funds, is established in the User Charge Ordinance adopted in 1976. This analysis is presented at a public hearing each year. After receiving comments from the public, the budget is reviewed by the Board of Trustees. There is a significant amount of tax exempt property within the District’s boundaries, and this is one of the primary reasons the District does not levy property taxes. In addition, the user charge system is deemed by the District to be a more equitable method of revenue generation by charging the cost of the services to those that use them the most. With reliance on user charges, projecting the amount of water to be used by its customers in the coming year becomes critical. Billed water use varies based on the amount of rainfall experienced. The District budgets for billable water use based on historical trends. Annual water use varies depending on factors including temperature, occupancy, and precipitation. A summary of water consumption and precipitation over the last ten years is given in Table A-4. A graphic illustration of water consumption figures and precipitation over the last 10 fiscal years is provided in Figure 1.


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Table A-4

Summary of Sewer Rates, Water Consumption, and Rainfall

April through September

Fiscal Year

Budgeted Water Consumption (1,000 gal)

Actual Water Consumption (1,000 gal)

Water Usage/ Budget

(%) Rainfall (inches)

Days of Rainfall

2007 1,953,875 1,672,363 86% 23.20 64

2008 1,942,460 1,654,050 85% 18.30 53

2009 1,942,400 1,786,060 92% 29.14 63

2010 1,890,000 1,587,074 84% 19.70 59

2011 1,836,452 1,607,780 88% 31.79 65

2012 1,750,000 1,603,874 92% 27.03 60

2013 1,650,000 1,667,028 101% 11.14 32

2014 1,700,000 1,585,385 93% 26.62 58

2015 1,700,000 1,356,014 80% 26.25 58

2016 1,700,000 1,441,864 85% 26.06 67

0

10

20

30

40

50

60

70

80

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Da

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inch

es

Ra

in

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tio

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Figure 1Summary of Water Consumption and Rainfall

(Fiscal Year - April Through September)

Water Consumption Inches of Rainfall Days of Rainfall


APRIL 30, 2016 AND 2015

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Based on Illinois Environmental Protection Agency criteria, a typical user consumes 6,000 gallons (800 cubic feet) of water per month. In FY 2016, the cost of collection and sewage treatment for a typical user in the District was $32.90 per month, approximately $394 annually. Sanitary sewer service continues to be an affordable service with annual costs equivalent to or less than the cost of other essential services such as telephone, cable television, and garbage pickup. A recent survey conducted by the National Association of Clean Water Agencies (NACWA) indicated the average annual charge paid for sewer service in calendar year 2011 was $390. The United States Environmental Protection Agency suggests that an affordable charge for sanitary sewer service is one percent (1%) of the median family income of the community. Based on the 2010 census data for the City of Wheaton, the median family income is $73,385, suggesting that the cost of sanitary sewer service would be affordable at a cost of $733 per year, or $61 per month. The District has an extensive capital improvements program including replacement of the Northside Interceptor Sewer, which will be phased over three to four years. Continued rehabilitation of the sanitary sewer collection system contributes to expenses. Plant improvements are generally driven by changing EPA regulations, and the District is monitoring potential regulations on biological nutrient removal (i.e. phosphorous), wet weather treatment, and ammonia levels. The District’s strategic financial plan incorporates the capital costs for these projects as well. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide District customers and creditors with a general overview of the District’s finances and to demonstrate accountability for the funds it receives. If you have questions about this report or need additional information about the District, please contact the District’s Executive Director at P.O. Box 626, Wheaton, IL 60187-0626.

WHEATON SANITARY DISTRICTSTATEMENTS OF NET POSITION

APRIL 30, 2016 AND 2015

2016 2015

Current assets:Cash and investments 4,554,605$ 4,491,837$ Receivables

User charges (net of allowance for uncollectibles of $25,000) 1,090,195 1,055,740Special assessments 30,994 27,540Due from other governmental units 5,731 7,553

Prepaid items 44,860 23,733Inventory - water meters 4,881 4,881

Total current assets 5,731,266 5,611,284

Non-current assets:Other assets:

Special assessments 41,517 37,285Drum/cylinder deposits 675 675

Total other assets 42,192 37,960Capital assets:

Water treatment facilities and equipment 28,831,079 27,235,987Sewers and extensions 27,534,006 27,471,614

Total capital assets 56,365,085 54,707,601Accumulated depreciation (27,746,007) (26,348,548)Construction in progress 6,141,173 1,876,204

Net capital assets 34,760,251 30,235,257

Total non-current assets 34,802,443 30,273,217

Total assets 40,533,709 35,884,501

Deferred outflows of resources:Pension contributions 448,727 410,613

Total assets and deferred outflows of resources 40,982,436$ 36,295,114$

See Accompanying Notes to the Financial Statements

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WHEATON SANITARY DISTRICTSTATEMENTS OF NET POSITION (CONTINUED)

APRIL 30, 2016 AND 2015

2016 2015

Current liabilities:Accounts payable 994,739$ 472,805$ Accrued payroll 57,067 44,000Current maturities of long-term debt 1,008,815 988,450Accrued interest 35,555 42,878Due to other governmental units - 5,063

Total current liabilities 2,096,176 1,553,196

Non-current liabilities:Long-term debt, net of current maturities 14,828,023 12,218,413Deferred revenue - special assessments 41,517 37,285Compensated absences payable 78,618 74,859

Total non-current liabilities 14,948,158 12,330,557

Total liabilities 17,044,334 13,883,753

Deferred inflows of resources:Grants received in advance 250,000 250,000

Net position:Net investment in capital assets 19,944,280 17,565,826Unrestricted 3,743,822 4,595,535

Total net position 23,688,102 22,161,361

Total liabilities, deferred inflows of resources, and net position 40,982,436$ 36,295,114$


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WHEATON SANITARY DISTRICTSTATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

FOR THE YEARS ENDED APRIL 30, 2016 AND 2015

2016 2015Operating revenues:

Charges for servicesUser charges - sewer billings 3,566,922$ 3,302,442$ User charges - sewer maintenance 198,775 179,438User charges - capital improvement 564,613 445,990User charges - machinery and equipment replacement - (136)Sale of plant effluent 6,783 7,239User charge penalties 28,789 26,822Septage, leachate and sludge charges 456,010 421,320Interceptor charges 136,541 128,416Billing charges 1,510,646 1,364,800Debt certificate charges 1,101,496 928,020Permit fees 294,155 90,439Inspection fees - 4,950Water meter maintenance 5,861 5,256Annexation fees - 1,750

Property and replacement tax 34,693 43,481Special assessments 8,381 6,747Other revenues 67,341 45,611

Total operating revenues 7,981,006 7,002,585

Operating expenses:Administrative 1,278,783 1,094,268Laboratory 405,793 249,189Plant operations 1,412,162 1,116,924Plant maintenance 1,257,416 1,296,305Sewer operations and maintenance 540,075 485,353Trustees 72,743 69,893Depreciation 1,400,699 1,385,268

Total operating expenses 6,367,671 5,697,200

Operating income 1,613,335 1,305,385

Non-operating revenues (expenses):Investment income 9,390 15,666Interest expense (95,984) (113,772)

Net non-operating revenues (expenses) (86,594) (98,106)

Change in net position 1,526,741 1,207,279Net position - beginning of year, as restated 22,161,361 20,954,082

Net position - end of year 23,688,102$ 22,161,361$


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WHEATON SANITARY DISTRICTSTATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30, 2016 AND 2015

2016 2015

CASH FLOWS FROM OPERATING ACTIVITIESReceived from customers 7,900,023$ 6,845,649$ Received from other sources 34,693 43,481Paid to suppliers and employees (4,007,260) (4,093,086)

Net cash flows from operating activities 3,927,456 2,796,044

CASH FLOWS FROM INVESTING ACTIVITIESInvestment income received 9,390 15,666

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESCollection of special assessments 8,382 4,139Construction loan draws 3,137,674 -Debt retired (991,133) (973,450)Interest paid (103,308) (120,250)Acquisition and construction of fixed assets (5,925,693) (2,489,102)

Net cash flows from capital and related financing activities (3,874,078) (3,578,663)

Net change in cash and cash equivalents 62,768 (766,953)

Cash and cash equivalents - beginning of year 4,491,837 5,258,790

Cash and cash equivalents - end of year 4,554,605$ 4,491,837$

RECONCILIATION OF OPERATING INCOME TO NET CASHFLOWS FROM OPERATING ACTIVITIESOperating income 1,613,335$ 1,305,385$ Adjustments to reconcile operating income to net cash flows from operating activities:

Depreciation 1,400,699 1,385,268Special assessment revenue (11,835) (6,747)Changes in assets and liabilities:

Receivables - user charges (34,455) (106,708)Prepaid items (21,127) (5,597)Accounts payable 521,934 6,280Due to/from other governmental units (3,241) (2,490)Grants received in advance - 250,000Accrued payroll 13,067 5,387Compensated absences 3,759 (7,845)Pension contributions 445,320 (26,889)

Net cash flows from operating activities 3,927,456$ 2,796,044$


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WHEATON SANITARY DISTRICT NOTES TO THE FINANCIAL STATEMENTS

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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Wheaton Sanitary District (District) is governed by an elected Board of Trustees. The accounting policies of the District conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A summary of the significant accounting policies, consistently applied in the preparation of the accompanying financial statements is described below. a. The Reporting Entity The District includes all operations that are controlled by or dependent upon the District as determined on a basis of financial accountability. Financial accountability includes appointment of the organization's governing body, imposition of will, and fiscal dependency. The accompanying financial statements include only operations of the District as there are no other organizations for which it has financial accountability. b. Basis of Presentation, Measurement Focus and Basis of Accounting The District’s basic financial statements are presented on the full accrual basis of accounting and conform to accounting principles generally accepted in the United States of America. The term measurement focus is used to denote what is being measured and reported in the District’s operating statement. The District’s financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. The fundamental objective of this focus is to measure whether the District is better or worse off economically as a result of events and transactions of the period.

The term basis of accounting is used to determine when a transaction or event is recognized on the District’s operating statement. The District uses the full accrual basis of accounting. Under this basis, revenues are recorded when earned and expenses are recorded when incurred, even though actual payment or receipt may not occur until after the period ends. c. Net Position Net position comprises the various net earnings from operating income, nonoperating revenues and expenses, and capital contributions. Net position is classified in the following three components:

WHEATON SANITARY DISTRICT NOTES TO THE FINANCIAL STATEMENTS (CONT.)

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Net investment in capital assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.

Restricted – This component of net position consists of constraints placed on net

position use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation.

Unrestricted net position – This component of net position consists of net position

that does not meet the definition of “restricted” or “net investment in capital assets.”

When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the District’s policy is to apply restricted net position first. d. Cash and Investments Cash and investments are combined on the statement of net position. Cash deposits consist of demand and time deposits with financial institutions and are carried at cost. Investments are reported at fair value. For purposes of the statement of cash flows, all cash deposits and highly liquid investments with an original maturity of three months or less when acquired are considered to be cash equivalents. e. Capital Assets Capital assets, which include land, buildings and improvements, sewers and extensions, and furniture and equipment, are reported in the financial statements. The District defines capital assets as assets with an original individual cost greater than $2,500 and with 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 their estimated fair value on the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of an asset are charged to operations as incurred.


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Capital assets of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and building improvements 10-40 years Land improvements 10-20 years Furniture, machinery and equipment 3-20 years Sewers and extensions 50 years f. Long-term Obligations Long-term debt and other long-term obligations are reported as liabilities in the statement of net position. g. Compensated Absences Accumulated unpaid vacation amounts are accrued when benefits vest to employees and the unpaid liability is reflected as compensated absences payable. h. Deferred outflows/inflows of resources A deferred outflow of resources represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense) until that future time. A deferred inflow of resources represents an acquisition of net position that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. i. Revenue and Expenses Revenues and expenses are distinguished between operating and non-operating items. Operating revenues generally result from providing services in connection with the District’s principal ongoing operations. The principal operating revenues of the District are fees and capital revenue for wastewater treatment services. Operating expenses include the costs associated with the conveyance and treatment of wastewater, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting these definitions are reported as non-operating revenues and expenses. j. Operating Revenues District billings are rendered and recorded monthly based on calendar month metered flows.


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k. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Economic Interest Statements All board members and administrative personnel of the District who are required to file Economic Interest Statements have done so, as required by Chapter 20 of the Illinois Compiled Statutes. NOTE 3. CASH AND INVESTMENTS Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. As of April 30, 2016, none of the District’s bank balances of $4,938,145 was exposed to custodial credit risk. Investments Interest Rate Risk: In the District’s formal investment policy, there are no specific limitations on investment maturities in order to manage exposure to fair market losses from increasing interest rates. Credit Risk: Under Illinois law, the District is restricted to investing funds in specific types of investment instruments. The following generally represents the types of instruments allowable by State laws.

Securities issued or guaranteed by the United States.

Interest-bearing accounts of banks and Savings and Loan Associations insured up to $250,000 by the Federal Deposit Insurance Corporation.

Short-term obligations (less than 180 days) of U.S. corporations with assets over $500,000,000 rated in the three highest classifications by at least two rating agencies. Insured accounts of an Illinois credit union chartered under United States or Illinois law. Money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same types of obligations.


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Repurchase agreements which meet instrument transaction requirements of Illinois law. The District’s investment policy further limits its investment choices to deposits insured by the Federal Deposit Insurance Corporation with maturities not to exceed one year, interest bearing Certificates of Deposit, United States Treasury Bills with maturities not to exceed one year and investments in the Illinois Public Treasurers’ Investment Pool. Concentration of Credit Risk: The District places no limit on the amount the District may invest in any one issuer. None of the District’s investments are greater than 5% of the total of investments. NOTE 4. CHANGES IN CAPITAL ASSETS

Balance April 30, 2015

Additions

Deletions

Balance April 30, 2016

Water Treatment Facilities:

Land and Land Improvements

$ 1,520,701 $ 574,862

$ - $ 2,095,563

Buildings 12,742,148 835,224 - 13,577,372

Machinery and equipment

12,973,138 188,246 (3,240) 13,158,144

Sewers and extensions 27,471,614 62,392 - 27,534,006

Total Capital Assets 54,707,601 1,660,724 (3,240) 56,365,085

Less: Accumulated Depreciation

(26,348,548)

(1,400,699)

3,240

(27,746,007)

Construction in progress 1,876,204 5,312,290 (1,047,321) 6,141,173

Net Capital Assets $ 30,235,257 $ 5,572,315 $ (1,047,321) $ 34,760,251

NOTE 5. RETIREMENT FUND COMMITMENTS Illinois Municipal Retirement Fund

Plan Description: The District’s defined benefit pension plan for regular employees provides retirement and disability benefits, post-retirement increases, and death benefits to plan members and beneficiaries. The District’s plan is managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multi-employer public pension fund. A summary of IMRF’s pension benefits is provided in the “Benefits Provided” section of this document. Details of all benefits are available from IMRF. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois.


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

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

Employees Covered by Benefit Terms: At December 31, 2015, the number of District employees covered by IMRF were: Active members 25 Retirees and beneficiaries 19 Inactive, non-retired members 10 Total 54


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Contributions: As set by statute, the District’s regular plan members are required to contribute 4.5% of their annual covered salary. The statute requires the District to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rate for 2015 was 11.91% of annual covered payroll. 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. Required contributions were $175,605 and actual contributions were $175,606, or 100.00% of required contributions. Net Pension Liability: The District’s net pension liability was measured as of December 31, 2015. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. Actuarial Assumptions: The following are the methods and assumptions used to determine the Total Pension Liability at December 31, 2015:

Actuarial Cost Method Entry Age Normal Asset Valuation Method Market Value of Assets Inflation 2.75% Salary Increases 3.75% to 14.50% including inflation Investment Rate of Return 7.49% Projected Retirement Age Experience-based Table of Rates that are specific to the type of

eligibility condition, last updated for the 2014 valuation pursuant to an experience study of the period 2011-2013.

Mortality For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience.

Disabled Retirees For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives.

Active Members For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience.

Other Information: There were no benefit changes during the year.


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The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

Asset Class

Approximate Asset

Allocation

Long-Term Expected Real Rate of Return

Domestic equity 38.0% 7.4% International equity 17.0 7.6

Fixed income 27.0 3.0 Real estate 8.0 6.0

Alternative investments 9.0 2.75-8.15 Cash equivalents 1.0 2.25

Single Discount Rate: A Single Discount Rate of 7.50% was used to measure the total pension liability. The projection of cash flow used to determine this Single Discount Rate assumed that the plan members’ contributions will be made at the current contribution rate, and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Single Discount Rate reflects: (1) the long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and (2) the tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). For the purpose of the most recent valuation, the expected rate of return on pension plan investments is 7.50%; the municipal bond rate is 3.57%; and the resulting single discount rate is 7.49%.


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Changes in the District’s Net Pension Liability: Changes in the District’s Net Pension Liability for the year ended December 31, 2015 were as follows: Increase (Decrease) Total Pension

Liability Plan Fiduciary Net Position

Net Pension Liability

(a) (b) (a) – (b) Balance, December 31, 2014 $ 8,865,493 $ 8,328,060 $ 537,433 Charges for the year:

Service cost 159,043 - 159,043 Interest 654,192 - 654,192 Difference between expected and

actual experience (84,690) - (84,690) Changes in assumptions - - - Net investment income - 41,191 (41,191) Contributions – employees - 66,350 (66,350) Contributions – employers - 175,606 (175,606) Benefit payments including refunds

of employee contributions (421,605) (421,605) - Administrative expenses - - - Other changes - (38,036) 38,036

Net changes 306,940 (176,494) 483,434 Balance, December 31, 2015 $ 9,172,433 $ 8,151,566 $ 1,020,867

Sensitivity of the Net Pension Liability to Changes in the Single Discount Rate: The following presents the Net Pension Liability calculated using the single discount rate of 7.49%, as well as what the Net Pension Liability would be if it were calculated using a single discount rate that is 1% higher and lower:

Discount Rate

Net Pension Liability (Asset)

1% decrease 6.49% $ 2,138,896 Current discount rate 7.49 1,020,867 1% increase 8.49 138,923


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Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: For the year ended April 30, 2016, the District recognized pension expense of $264,978. At April 30, 2016, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred

Outflows of Resources

Deferred Inflows of Resources

Net Deferred Outflows /

(Inflows) of Resources

Differences between expected and actual experience $ - $ 66,138 $ (66,138)

Changes of assumptions - - - Net difference between projected and

actual earnings on Plan investments 460,200 - 460,200 Employer contributions to plan after

measurement date 54,665 - 54,665 Total $ 514,865 $ 66,138 $ 448,727

Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows: NOTE 6. LONG-TERM DEBT The following is summary of long-term debt and related transactions for the year ended April 30, 2016:

IEPA Loan #1

IEPA Loan #2

Debt Certificates

Net Pension Liability

Total

Balance, May 1, 2015 $10,204,430 $ - $2,465,000 $ 537,433 $13,206,863Additions 85,836 3,051,838 - 728,545 3,866,219Reductions (621,133) - (370,000) (245,111) (1,236,244)

Balance, April 30, 2016 $9,669,133 $ 3,051,838 $2,095,000 $1,020,867 $15,836,838

Due within one year $ 623,815 $ - $ 385,000 $ - $ 1,008,815

Year ending April 30,

Net Deferred Outflows (Inflows)

2016 $ 151,163 2017 96,498 2018 96,498 2019 104,568 Total $ 448,727


APRIL 30, 2016 AND 2015

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Loans Payable to the Illinois Environmental Protection Agency (IEPA)

The District has entered into loan agreements with the IEPA for the South Side Interceptor construction project. The project was completed during the year ended April 30, 2016 and the total financed was $12,305,250. Terms of this loan have been set with repayments due in equal semi-annual installments of principal of $311,908. Interest does not accrue on this loan.

The District has entered into a loan agreement with IEPA for the Intermediate Pump Station construction project. The project has not been completed, and the loan for the project has not been finalized as of April 30, 2016. Terms for this loan are preliminarily set, with interest at 2.21%. The loan will start when substantial completion is reached. The project is expected to be complete around December 2016. The loan is estimated to be approximately $4,600,000 at completion. Interest has not started to accrue on this loan.

General Obligation Debt Certificates

General obligation debt certificates dated May 15, 2006 were issued by the District in the amount of $5,000,000. Principal payments are due December 1 and interest payments at rates varying from 4.00% to 4.75% are due December 1 and June 1, through the fiscal year ending April 30, 2021.

The annual debt service requirements for the District as of April 30, 2016, are as follows:

Year Ended IEPA Loan (1) Debt Certificates Total debt April 30 Principal Principal Interest service

2017 $ 623,815 $ 385,000 $ 85,332 $ 1,094,1472018 623,815 400,000 69,933 1,093,7482019 623,815 420,000 53,932 1,097,7472020 623,815 435,000 36,713 1,095,5282021 623,815 455,000 18,769 1,097,584

2022 – 2026 3,119,075 - - 3,119,0752027 – 2031 3,119,075 - - 3,119,075

2032 311,908 - - 311,908Total $ 9,669,133 $ 2,095,000 $ 264,679 $ 12,028,812

(1) Does not include the loan for the Intermediate Pump Station, as repayment terms have not been established.


APRIL 30, 2016 AND 2015

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NOTE 7. SIGNIFICANT CONTINGENCIES Contingent Liabilities The District has received funds under various Federal grants and loans which were used to construct and modernize the District's sewers and treatment facilities. The funds were received under cost-reimbursement type contracts and are subject to audit by the grantors. NOTE 8. COMMITMENTS The District has entered into contractual commitments for building improvements with a remaining commitment of $2,118,673 as of April 30, 2016. The District intends to fund these commitments from cash on hand and IEPA loans.

REQUIRED SUPPLEMENTARY INFORMATION

WHEATON SANITARY DISTRICTSCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

LAST TEN CALENDAR YEARS(SCHEDULE TO BE BUILT PROSPECTIVELY FROM 2014)

Calendar year ending December 31, 2015 2014

Total pension liability:Service cost 159,043$ 168,011$ Interest on the total pension liability 654,192 601,314Difference between expected and actual experience (84,690) 11,587Assumption changes - 337,239Benefit payments and refunds (421,605) (372,344)

Net change in total pension liability 306,940 745,807Total pension liability, beginning 8,865,493 8,119,686Total pension liability, ending 9,172,433$ 8,865,493$

Plan fiduciary net positionEmployer contributions 175,606$ 175,651$ Employee contributions 66,350 66,312Pension plan net investment income 41,191 478,568Benefit payments and refunds (421,605) (372,344)Other (38,036) 69,305Net change in plan fiduciary net position (176,494) 417,492Plan fiduciary net position, beginning 8,328,060 7,910,568Plan fiduciary net position, ending 8,151,566$ 8,328,060$

Net pension liability/(asset), ending 1,020,867$ 537,433$

Plan fiduciary net position as a percentage of total pension liability 88.87 93.94

Covered valuation payroll 1,474,434$ 1,446,978$

Net pension liability as a percentage of covered valuation payroll 69.24 37.14

APRIL 30, 2016

This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available.

27

WHEATON SANITARY DISTRICT SCHEDULE OF CONTRIBUTIONS - LAST TEN CALENDAR YEARS

(SCHEDULE TO BE BUILT PROSPECTIVELY FROM 2014) APRIL 30, 2016

28

The following describes the summary of actuarial methods and assumptions used in the calculation of the 2015 contribution rate: Actuarial Cost Method Aggregate Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period

Non-Taxing bodies: 10-year rolling period. Taxing bodies: 28-year closed period until remaining period reaches 15 years (then 15-year rolling period). Early Retirement Incentive Plan liabilities: a period up to 10 years selected by the Employer upon adoption of ERI.

Asset Valuation Method 5-Year smoothed market; 20% corridor Wage Growth 4.00% Price Inflation 3.0% -- approximate; No explicit price inflation assumption is

used in this valuation. Salary Increases 4.40% to 16.00% including inflation Investment Rate of Return 7.50% Retirement Age Experience-based table of rates that are specific to the type of

eligibility condition. Last updated for the 2011 valuation pursuant to an experience study of the period 2008-2010.

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

Valuation Date Actuarially determined contribution rates are calculated as of December 31 each year, which are 12 months prior to the beginning of the fiscal year in which contributions are reported.

Other Information There were no benefit changes during the year. *Based on Valuation Assumptions used in the December 31, 2013, actuarial valuation;. This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, information is presented for those years for which information is available.

Calendar Year Ending

Actuarially Determined Actual

Contribution Deficiency/

Covered Valuation

Actual Contribution as a

% of Covered December 31, Contribution Contribution (Excess) Payroll Valuation Payroll

2015 $175,605 $175,606 $ (1) $1,474,434 11.91% 2014 172,480 175,651 (3,171) 1,446,978 12.14

SUPPLEMENTAL INFORMATION

User Charge Capital

Improvements Capital Assets Debt Service Totals

Operating revenues:Charges for services

User charges - sewer billings 3,566,922$ -$ -$ -$ 3,566,922$ User charges - sewer maintenance 198,775 - - - 198,775User charges - capital improvement - 564,613 - - 564,613Sale of plant effluent 6,783 - - - 6,783User charge penalties 28,789 - - - 28,789Septage, leachate and sludge charges 305,527 150,483 - - 456,010Interceptor charges 136,541 - - - 136,541Billing charges 1,510,646 - - - 1,510,646Debt certificate charges - - - 1,101,496 1,101,496Permit fees - 294,155 - - 294,155Water meter maintenance 5,861 - - - 5,861

Property and replacement tax - 34,693 - - 34,693Special assessments - 8,381 - - 8,381Other revenues 67,341 - - - 67,341

Total operating revenues 5,827,185 1,052,325 - 1,101,496 7,981,006

Operating expenses:Administrative 1,278,783 - - - 1,278,783Laboratory 405,793 - - - 405,793Plant operations 1,412,162 - - - 1,412,162Plant maintenance 922,528 334,888 - - 1,257,416Sewer operations and maintenance 532,469 7,606 - - 540,075Trustees 72,743 - - - 72,743Depreciation - - 1,400,699 - 1,400,699

Total operating expenses 4,624,478 342,494 1,400,699 - 6,367,671

Operating income 1,202,707 709,831 (1,400,699) 1,101,496 1,613,335

Non-operating revenues (expenses):Investment income 6,262 1,151 - 1,977 9,390Interest expense - - - (95,984) (95,984)Operating transfers (1,167,099) 1,164,780 - 2,319 -Capitalized items (139,699) (5,785,994) 5,925,693 - -

Net non-operating revenues(expenses) (1,300,536) (4,620,063) 5,925,693 (91,688) (86,594)

Change in net position (97,829)$ (3,910,232)$ 4,524,994$ 1,009,808$ 1,526,741$

WHEATON SANITARY DISTRICTCOMBINING SCHEDULES OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

FOR THE YEAR ENDED APRIL 30, 2016

29

WHEATON SANITARY DISTRICTUSER CHARGE FUND

SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUALFOR THE YEAR ENDED APRIL 30, 2016

VarianceFinal Favorable

Budget Actual (Unfavorable)

Administrative:Salaries 392,842$ 384,613$ 8,229$ Illinois Municipal Retirement Fund 46,788 153,939 (107,151)F.I.C.A. 37,102 25,795 11,307Unemployment compensation 903 451 452Workmen's compensation insurance 490 404 86Group insurance 94,722 102,892 (8,170)Multi-peril insurance 53,954 58,143 (4,189)Surety bonds 5,300 - 5,300Liability insurance 12,868 282 12,586Electrical power 8,000 5,809 2,191Natural gas and fuel oil 5,985 1,729 4,256Telephone 15,360 12,714 2,646Stationery and supplies 3,250 2,047 1,203Postage 75,000 76,200 (1,200)Dues and subscriptions 79,867 88,466 (8,599)Permit fees 33,000 32,500 500Travel, training and meetings 6,000 2,690 3,310Data processing 142,072 73,673 68,399User charge billing 110,104 123,385 (13,281)Car allowance 6,000 6,000 -Safety equipment and supplies 200 129 71Scavenger service 300 - 300Contract maintenance service 5,000 962 4,038Miscellaneous employee expense 7,640 6,258 1,382Legal expense 89,800 75,388 14,412Contract Personnel Services - 10,753 (10,753)Internal audit 15,000 9,530 5,470Annual audit 28,900 21,415 7,485Engineering services 41,000 - 41,000Legal publications 4,500 1,291 3,209Water and sewer 456 1,325 (869)

Total administrative 1,322,403$ 1,278,783$ 43,620$

30




Budget Actual (Unfavorable)Laboratory:

Salaries 198,900$ 194,832$ 4,068$ Illinois Municipal Retirement Fund 23,689 77,584 (53,895)F.I.C.A. 15,216 14,221 995Unemployment compensation 387 224 163Workmen's compensation insurance 3,840 3,164 676Group insurance 48,441 51,070 (2,629)Natural gas and fuel oil 2,494 965 1,529Stationery and supplies 1,900 3,516 (1,616)Dues and subscriptions 1,150 151 999Travel, training and meetings 4,200 1,184 3,016Data processing 5,000 3,728 1,272Vehicle gas and oil 84 56 28Vehicle insurance 48 - 48Small tools and supplies 22,700 642 22,058Personnel clothing and equipment 3,429 1,501 1,928Safety equipment and supplies 2,450 1,603 847Scavenger service 779 - 779Contract maintenance service 7,100 3,191 3,909Outside laboratory services 37,607 23,030 14,577Laboratory chemicals and supplies 25,550 24,067 1,483Maintenance supplies and materials 3,860 1,064 2,796

Total laboratory 408,824$ 405,793$ 3,031$

31




Budget Actual (Unfavorable)Plant operations:

Salaries 416,272$ 447,305$ (31,033)$ Illinois Municipal Retirement Fund 49,578 166,103 (116,525)F.I.C.A. 31,845 32,324 (479)Unemployment compensation 1,419 761 658Workmen's compensation insurance 19,200 15,822 3,378Group insurance 137,244 114,284 22,960Electrical power 273,100 296,527 (23,427)Irrigation water pumping 3,541 3,744 (203)Natural gas and fuel oil 16,000 7,800 8,200Telephone 4,200 3,646 554Stationery and supplies 225 91 134Dues and subscriptions 350 337 13Travel, training and meetings 8,400 7,209 1,191Data processing 58,560 49,507 9,053Vehicle gas and oil 2,100 280 1,820Vehicle insurance 2,201 - 2,201Diesel fuel 9,270 - 9,270Small tools and supplies 7,200 3,027 4,173Personnel clothing and equipment 6,890 4,204 2,686Safety equipment and supplies 11,350 7,419 3,931Chlorine 24,949 15,330 9,619Sulfur dioxide 8,576 6,947 1,629Other process materials 53,780 48,981 4,799Sludge disposal service 98,900 78,014 20,886Scavenger service 20,520 19,578 942Contract maintenance services 28,600 20,963 7,637Maintenance materials 10,700 8,994 1,706Water and sewer 9,984 12,146 (2,162)Grounds maintenance supplies 65,243 40,819 24,424

Total plant operations 1,380,197$ 1,412,162$ (31,965)$

32




Budget Actual (Unfavorable)Plant maintenance:

Salaries 355,106$ 351,065$ 4,041$ Illinois Municipal Retirement Fund 42,293 139,423 (97,130)F.I.C.A. 27,166 26,243 923Unemployment compensation 645 356 289Workmen's compensation insurance 9,600 7,911 1,689Group insurance 84,342 59,087 25,255Telephone 1,876 2,562 (686)Stationery and supplies 715 129 586Dues and subscriptions - 87 (87)Travel, training and meetings 2,250 578 1,672Data processing 3,500 2,349 1,151Vehicle repairs and maintenance 37,650 19,967 17,683Vehicle gas and oil 350 1,065 (715)Vehicle insurance 664 - 664Diesel fuel 1,620 5,125 (3,505)Small tools and supplies 9,900 2,155 7,745Personnel clothing and equipment 6,265 3,142 3,123Safety equipment and supplies 2,227 2,499 (272)Lubricants 16,520 9,360 7,160Contract maintenance service 354,240 142,369 211,871Maintenance supplies and material 241,852 71,101 170,751Major equipment repair 504,834 75,170 429,664Water and sewer 538 785 (247)

Total plant maintenance 1,704,153$ 922,528$ 781,625$

33




Budget Actual (Unfavorable) Sewer operations and maintenance:

Salaries 219,221$ 208,091$ 11,130$ Illinois Municipal Retirement Fund 26,109 85,946 (59,837)F.I.C.A. 16,770 16,046 724Unemployment compensation 258 285 (27)Workmen's compensation insurance 5,760 4,746 1,014Group insurance 37,222 39,631 (2,409)Electrical power 2,000 1,702 298Telephone 1,640 2,073 (433)Stationery and supplies 130 113 17Dues and subscriptions 167 87 80Travel, training and meetings 4,400 507 3,893Data processing 525 595 (70)Vehicle gas and oil 4,200 4,204 (4)Vehicle insurance 1,171 415 756Diesel fuel 990 - 990Small tools and supplies 1,605 637 968Personnel clothing and equipment 657 233 424Safety equipment and supplies 115 - 115Lift station maintenance 6,720 402 6,318Interceptor sewer maintenance 41,505 12,251 29,254Collector sewer maintenance 405,270 147,064 258,206Engineering services 11,922 7,164 4,758Maintenance supplies and material 3,000 277 2,723

Total sewer operations and maintenance 791,357$ 532,469$ 258,888$

Trustees:Salaries 18,000$ 18,000$ -$ F.I.C.A. 1,377 861 516Workmen's compensation insurance 210 173 37Group insurance 60,837 53,359 7,478Surety bonds 450 350 100

Total trustees 80,874$ 72,743$ 8,131$

34

Capital ImprovementsVariance

Final FavorableBudget Actual (Unfavorable)

Process equipment 5,200$ 406$ 4,794$ Land improvements 541,500 373,539 167,961Plant and buildings 632,000 484,220 147,780Capital improvement studies 1,369,000 451,747 917,253Plant expansions 6,875,068 4,811,376 2,063,692Sewers and extensions 16,000 7,200 8,800

Totals 9,438,768$ 6,128,488 3,310,280$ Less amounts capitalized (5,785,994)

Amounts reported as operating expenses 342,494$

WHEATON SANITARY DISTRICTSCHEDULE OF CAPITAL OUTLAY - BUDGET AND ACTUAL

FOR THE YEAR ENDED APRIL 30, 2016

35

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