On the agenda: Wilmette meeting — License Plate Reader (Jun 23)

1. Agenda
Documents:
06-23-26 FINANCE COMMITTEE MEETING NOTICE AND AGENDA.PDF
2. Packet
Documents:
06-23-26 FINANCE COMMITTEE MEETING PACKET.PDF

1200 WILMETTE AVENUE
WILMETTE, ILLINOIS 60091-0040

NOTICE OF PUBLIC MEETING
OF THE
FINANCE COMMITTEE OF THE BOARD OF TRUSTEES
OF THE VILLAGE OF WILMETTE
Tuesday, June 23, 2026 at 6:00 P.M.
Village Hall Committee Room (2nd Floor)
1200 Wilmette Avenue, Wilmette, Illinois

AGENDA
I.

Call to Order and Roll Call

II.

Approval of the December 10, 2025 Finance Committee Meeting Minutes

III.

Discussion of the Annual Comprehensive Financial Report for fiscal year ended December
31, 2025

IV.

New Business

V.

Public Comment 1

VI.

Adjournment
Trustee Justin Sheperd, Chair

1 Members of the public that attend the above noticed meeting may address this public body during Public Comment.

Members of the
public that will not be attending the above noticed meeting may submit a comment in advance of the meeting by emailing their comment
to [email protected]. All emailed comments received two hours prior to the start of a meeting will be provided, unredacted,
to the public body. Emails received at any time within two hours of the beginning of the meeting until its adjournment will be included in
the draft minutes of the meeting.

1200 WILMETTE AVENUE
WILMETTE, ILLINOIS 60091-0040

NOTICE OF PUBLIC MEETING
OF THE
FINANCE COMMITTEE OF THE BOARD OF TRUSTEES
OF THE VILLAGE OF WILMETTE
Tuesday, June 23, 2026 at 6:00 P.M.
Village Hall Committee Room (2nd Floor)
1200 Wilmette Avenue, Wilmette, Illinois

AGENDA
I.

Call to Order and Roll Call

II.

Approval of the December 10, 2025 Finance Committee Meeting Minutes

III.

Discussion of the Annual Comprehensive Financial Report for fiscal year ended December
31, 2025

IV.

New Business

V.

Public Comment 1

VI.

Adjournment
Trustee Justin Sheperd, Chair

1 Members of the public that attend the above noticed meeting may address this public body during Public Comment.

Members of the
public that will not be attending the above noticed meeting may submit a comment in advance of the meeting by emailing their comment
to [email protected]. All emailed comments received two hours prior to the start of a meeting will be provided, unredacted,
to the public body. Emails received at any time within two hours of the beginning of the meeting until its adjournment will be included in
the draft minutes of the meeting.

Not Yet Approved

1200 Wilmette Avenue
WILMETTE, ILLINOIS 60091

MEETING MINUTES
FINANCE COMMITTEE OF THE VILLAGE BOARD
WEDNESDAY, DECEMBER 10, 2025
7:00 P.M.
VILLAGE HALL COUNCIL CHAMBERS (2ND FLOOR)
Members Present:

Trustee Justin Sheperd, Chair
Trustee Kennedy
Trustee Steen

Staff Present:

Melinda Molloy, Finance Director
Erik Hallgren, Assistant Village Manager
Sara Phyfer, Assistant to the Village Manager
Olga Golubeva, Assistance Finance Director

Guests Present:

Andrew Kim, Director, Public Finance, PMA Securities, LLC

I.

CALL TO ORDER
Trustee Sheperd called the meeting to order at 7:01 P.M. Committee members Sheperd,
Kennedy, and Steen were present.

II.

APPROVAL OF THE NOVEMBER 18, 2025 FINANCE COMMITTEE MEETING
MINUTES
Trustee Steen moved to approve the November 24, 2025, Finance Committee meeting minutes,
seconded by Trustee Kennedy. There was no discussion on the minutes. Voting yes: Trustees
Kennedy, Sheperd, and Steen. Voting no: none. The motion carried.

III.

DISCUSSION OF THE FINANCING OF THE NEW POLICE STATION –
CONTINUATION FROM NOVEMBER 18 – MARKET UPDATE, NUMBER AND
TIMING OF BOND ISSUANCE(S) AND ADDITIONAL CREDIT RATING
INFORMATION
The Committee moved to the next item on the agenda, a discussion of financing for the new
police station. The item included a market update, commentary on the timing of potential bond

issuances, and additional information about credit ratings.
Ms. Molloy explained that at the previous meeting PMA had led an extensive discussion about
the bond market. The Committee had spent considerable time reviewing how interest rates have
moved historically and what types of events or conditions tend to create the larger shifts the
Village has experienced in recent years. Part of that meeting was also devoted to reviewing bond
ratings. She reiterated a point made at the time: the State’s lower bond rating has influenced, and
may continue to influence, the Village’s borrowing environment, even though the Village holds
a AAA rating.
She reminded the Committee that PMA had reviewed Moody’s 2021 scorecard for the Village.
PMA had prepared a sensitivity analysis showing how different levels of reserve drawdowns
might influence the scorecard, allowing the Committee to consider the range of possible
consequences as it evaluates different financing scenarios. PMA had also presented a second
sensitivity analysis illustrating what might occur if Moody’s were to issue a downgrade and how
that change could translate into measurable financial outcomes.
Ms. Molloy recalled that PMA had concluded the previous meeting with what she described as
a police station project affordability check-in. The analysis demonstrated that, under current
market conditions, the Village could still meet the annual debt service constraint of $3,750,000.
The conclusion was that the Village would still be able to finance the police station even under
present interest rate conditions.
With that background in place, Ms. Molloy introduced Andrew Kim from PMA, who would
review bond issuance and reserve drawdown scenarios and address several information requests
generated during the November 18 meeting. The materials for this presentation included twelve
funding scenarios comparing one bond issuance to two, as well as repayment periods of twenty,
twenty-five, and thirty years. All twelve scenarios were structured to illustrate how different
choices would affect reserve drawdowns while ensuring the Village did not exceed the annual
maximum bond and interest levy of $3,750,000.
She expressed hope that, after reviewing all twelve scenarios, the Committee would see that the
Village has considerable flexibility depending on the policy direction it chooses to pursue. The
presentation would also include information about Wilmette’s activity in the secondary bond
market, along with Moody’s credit opinion issued in connection with the 2021 bonds. PMA had
replicated Moody’s rating scorecard for that issuance and identified what she described as the
tipping point for reserve drawdowns under Moody’s methodology. This analysis was intended to
help the Committee consider what level of reserve use might be prudent. The presentation also
included a more detailed breakdown of the individual components that make up Moody’s
scorecard.
Ms. Molloy noted that staff hoped the Committee would be able to reach two specific decisions
after reviewing the information. The first was whether the Village should pursue a single bond
issuance or two separate issuances. The second concern is the appropriate timing for a bond
issuance in 2026. Once there was agreement on those two points, staff would return to the Village
Board, likely at one of the January meetings, to present the conclusions from the Committee’s
discussion. She then invited Andrew Kim to begin the presentation.
Mr. Kim thanked the Committee and noted that they had a robust discussion with his colleague
Mr. Jasen Pinkerton during the previous month’s meeting. He had heard the conversation went
very well and expressed hope that the dialogue would continue that evening so PMA could
provide any information needed for the Committee to make an informed decision.
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Turning to page two of the presentation, Mr. Kim explained that the scenarios were designed to
demonstrate the amount of flexibility available to the Village as it works toward its financing
objectives. One of the central questions was whether the Village could afford the $50,500,000
police station project. Another was whether it could do so while maintaining the $3,750,000 bond
and interest levy. The scenarios showed that both objectives could be achieved.
He then outlined one of the key decision points for the evening: whether the Village should
complete the plan of finance through one bond issuance or two. A slide in the presentation
summarized the advantages and disadvantages of a two-issuance approach compared to a single
issuance. Staff had recommended a two-issuance plan, and PMA supported that
recommendation.
Mr. Kim explained that, in general, they recommend issuing bonds when the proceeds are
actually needed. Allowing the timing of expenditures to guide the timing of bond issuances is
typically more effective than attempting to time the market. Issuing two separate series of bonds
would allow the Village to align the proceeds more closely with the project’s cash-flow needs.
He then addressed the second major decision point: the timing of the 2026 bond issuance. Two
potential timing options had been evaluated. Staff recommended issuing the bonds in the fall of
2026, and PMA agreed with that recommendation. The reasoning was similar to the one-versustwo issuance discussion. Staff preferred to issue bonds when the Village expects to begin paying
project invoices. Issuing the bonds earlier would mean accruing interest while the proceeds
remain unused.
Mr. Kim noted that additional decisions would still need to be made later in the process. One of
those decisions would involve the amount of fund balance reserves the Village chooses to apply
toward the project, which would determine the final size of the borrowing. Another would
involve selecting the final term of the bond issuance: whether twenty, twenty-five, or thirty years.
The repayment term would affect the Village’s financial profile and would need to be evaluated
alongside the Village’s long-term financial goals. A final decision would concern the timing of
the 2027 bond issuance, which would ultimately be determined by the construction schedule and
the project’s future cash-flow needs.
After completing that explanation, Mr. Kim moved into a discussion of the advantages and
disadvantages of the two-issuance plan of finance.
Turning to the advantages of the two-issuance approach, he noted that the first two or three points
were the primary factors driving the recommendation. Issuing two separate bond series would
allow the Village to manage its bond proceeds in a way that more closely reflects the project’s
actual cash-flow needs. Under this structure, the proceeds from the second issuance would not
sit unused while the Village waited to spend them, avoiding the accumulation of unnecessary
interest costs. By contrast, issuing all bonds in a single transaction would leave a portion of the
proceeds unspent while the Village continued paying interest on those unused funds.
Another advantage of the two-issuance plan is that the Village would pay less total interest,
assuming interest rates remain unchanged between the first and second issuances. Even after
accounting for the lower reinvestment earnings associated with the two-issuance structure, the
overall cost to the Village would still be lower. PMA’s scenarios reflected this by modeling the
reinvestment of bond proceeds as part of the analysis so the Committee could see the full financial
picture.
If interest rates remain stable between the two issuances, the Village would also see a lower
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annual debt service levy. Because the Village would not be accruing interest on unspent bond
proceeds, slightly more resources could remain available for other Village services. However,
Mr. Kim noted that the approach also carries a meaningful drawback: the second issuance would
expose the Village to interest rate risk.
He then described how that risk could be managed. One scenario later in the presentation
structures the second bond issue with a shorter final maturity. Shorter maturities typically react
less dramatically to movements in interest rates, which helps reduce some of the exposure.
Although any two-issuance strategy introduces some degree of interest rate risk, this structuring
method can mitigate part of that risk.
Another advantage is a greater likelihood of meeting spend-down requirements that help avoid
potential arbitrage rebate payments. This factor becomes more significant when short-term
reinvestment rates exceed long-term borrowing rates. While that situation is not expected to
occur, it remains possible between now and 2026 and could become an issue the Village would
need to consider.
Chair Sheperd commented that arbitrage was not currently an issue but acknowledged that it
could become one. Mr. Kim agreed, noting that the Federal Reserve had taken action earlier that
day by lowering the federal funds target rate. Because that action affects the short end of the yield
curve, it helps reduce some of the arbitrage risk he had just described.
Mr. Kim then turned to the disadvantages of the two-issuance approach. The primary concern is
the Village’s exposure to interest rate risk between the first issuance and the second. No one can
predict how rates will move during that period. If rates decline, the Village would benefit from
the two-issuance strategy. If rates rise, however, the interest costs associated with the second
bond sale would increase.
Another disadvantage involves reinvestment earnings. Under a two-issuance structure, bond
proceeds must be reinvested in shorter-term securities, which typically earn lower interest rates.
This occurs because the yield curve is currently upward sloping and is expected to remain that
way as the Federal Reserve continues cutting short-term interest rates.
Mr. Kim illustrated how this works in practice. If the Village issued all bonds in a single
transaction and did not need some of the proceeds for a year and a half or two years, those funds
could be invested for that entire period. Under a two-issuance approach, however, each portion
of the proceeds would likely be reinvested for only about one year rather than a year and a half
or two. As a result, investment earnings would be somewhat lower.
Trustee Steen asked whether the Village would still come out ahead overall because the lower
borrowing costs would outweigh the loss of investment earnings. Mr. Kim responded that the
difference would likely amount to thousands of dollars and possibly tens of thousands, depending
on specific vendor costs. It would not rise to the level of hundreds of thousands or millions of
dollars.
Mr. Kim then shifted to a brief market update. Since the Committee’s last meeting, nothing
dramatic had changed, but he wanted to refresh everyone’s memory. The graph on the screen
should look familiar, as it had been included in the previous month’s presentation. It showed
municipal bond interest rates beginning in January 2020. The gray shading in the background
represented the Federal Reserve’s federal funds target rate.

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He noted that the presentation had been finalized about a week earlier and therefore did not yet
reflect the Federal Reserve’s decision from earlier that day. The federal funds target rate is the
overnight borrowing rate banks charge one another, and the short end of the municipal bond yield
curve tends to follow that rate closely. The longer end of the curve, however, is influenced by
broader global economic factors, so longer maturities do not always move in lockstep with
Federal Reserve actions.
Mr. Kim pointed out another notable feature of the chart. Between April 2020 and October 2022,
municipal borrowing rates were actually higher than the federal funds target rate. Since October
2022, that relationship has reversed, with municipal borrowing rates falling below the federal
funds target rate. At one point the federal funds target rate reached approximately 5.5 percent,
while the twenty-year MMD rate shown on the chart was around 3 percent. This illustrates that
municipal borrowing costs are influenced by factors beyond the federal funds target rate, even
though the federal funds rate often receives the most attention in the news.
He continued by explaining that the forces influencing Federal Reserve decisions are similar to
those that affect borrowing rates on the longer end of the municipal yield curve. Factors such as
inflation expectations, quantitative easing and tightening, and overall liquidity conditions across
financial markets all influence long-term interest rates. While these broader forces are significant,
the federal funds target rate itself does not directly determine the Village’s long-term borrowing
costs.
Returning to the chart, Mr. Kim highlighted one additional feature. On the right-hand side of the
graph, the lines representing five-year, ten-year, and twenty-year maturities begin to spread apart.
This widening indicates that the yield curve is steepening. A steepening yield curve generally
means the Village is financially rewarded for borrowing over shorter periods and pays a penalty
for borrowing over longer terms.
He added that other considerations also play an important role, including the $3,750,000 bond
and interest levy limit and the amount of fund balance the Village may choose to contribute. Still,
purely from the perspective of the yield curve’s shape, the steepening trend suggests that shorter
borrowing periods would be more advantageous.
Mr. Kim then turned to a new graph, describing it as a comparison between municipal bond fund
flows and the twenty-year MMD index. The chart illustrated the relationship between investor
fund flows into municipal bond mutual funds and exchange-traded funds and the movement of
interest rates. Pointing to the far left side of the graph, he explained that when large amounts of
money flow into municipal bond funds week after week, interest rates tend to fall. When money
flows out, interest rates rise. The graph made that relationship very clear.
He noted that people often ask what drives those fund flows in the first place. The answer is
typically the same: broad macroeconomic influences such as liquidity conditions, inflation
pressures, geopolitical tensions, and other large-scale factors that affect investors’ appetite for
municipal bonds.
At that point, Chair Sheperd commented on ‘Liberation Day’ from earlier in the graph’s timeline.
Mr. Kim agreed and confirmed that the dip in the graph corresponded with the spike in interest
rates that occurred during that same period.
Mr. Kim then moved to the next point. The first line of text on the slide had been accurate when
the presentation was prepared but was no longer accurate as of that afternoon. The federal funds
target rate had just been lowered by twenty-five basis points to a range of three and a half percent
5

to three and three-quarters percent. The market had been strongly anticipating this move, with
the probability reaching approximately eighty-seven percent and, at one point, close to ninety
percent. In effect, the market had already priced in the rate cut before it occurred.
He also noted that one of the major considerations surrounding the Federal Reserve was
speculation about who might become the next Fed chairperson.
Mr. Kim then discussed the September jobs report, which had been released on November 20.
The report was somewhat mixed. The United States added 119,000 jobs, significantly higher than
the 51,000 that had been expected. However, the unemployment rate rose to 4.4 percent, the
highest level since October 2021. Another statistic that received less attention was average hourly
earnings, which increased by 0.2 percent; slightly below the expected 0.3 percent. The
combination of rising unemployment and slower wage growth supported the Federal Reserve’s
decision to cut rates, and those indicators helped explain why the rate reduction announced earlier
that day had been widely anticipated.
He also explained that the recent federal shutdown had delayed several important economic
reports. The Bureau of Labor Statistics did not release the October jobs report or the inflation
reports, including the Consumer Price Index and the Producer Price Index. As a result, the Federal
Reserve had been relying on incomplete or somewhat dated information. The original expectation
had been that the Fed might pause rate decisions because of the missing data, but the available
information was ultimately considered convincing enough to justify a rate cut.
Mr. Kim then moved to the next slide, which reflected trading activity in the Village’s bonds
during a sixty-day period from October 1 through November 27. After compiling the data, PMA
found the results particularly interesting. He drew attention to a vertical bar placed at the center
of the graph, explaining that it separated two very different patterns in the trading activity.
The first pattern involved bonds with earlier maturities, ranging from 2025 through
approximately 2031. These bonds were trading at spreads to the MMD index of roughly 10 to 50
basis points, which was exactly what PMA would expect for a community with Wilmette’s strong
credit rating. Nothing in that portion of the trading activity was surprising.
The second pattern involved bonds maturing from approximately 2037 through 2049 or 2050.
These bonds were trading at significantly wider spreads, roughly 100 to 160 basis points. That
behavior was somewhat surprising for a AAA-rated community like Wilmette. The Village not
only holds a AAA rating but is also well known and well regarded as part of the North Shore,
factors that typically strengthen investor demand and result in narrower credit spreads.
PMA took a closer look at the data to understand why the trading patterns differed so sharply by
maturity. The explanation ultimately came down to the coupon rates on the bonds. The earlier
maturities had coupon rates consistent with current market norms, generally between about four
and five percent. The longer maturities, however, carried coupon rates of only about two and a
half percent. Because those lower coupons provide smaller interest payments, investors
purchasing those longer bonds require additional yield as compensation, which explains the
wider spreads observed in the chart.
Chair Sheperd asked whether all of those factors were already reflected in the pricing. He
wondered whether the pattern they were seeing could simply be the effect of the longer duration
of the bonds. Trustee Steen added that the chart appeared to show an unusual negative slope.
Negative slopes often arise from duration and sometimes from perceived risk, but in this case he
would not expect the downward slope that appeared in that portion of the graph.
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Trustee Kennedy then raised a question. She asked whether the behavior shown in the chart
reflected investor views about the Village of Wilmette specifically or whether it reflected how
investors generally treat AAA-rated municipal debt with longer maturities.
Mr. Kim explained that the shorter-maturity bonds on the yield curve provide a better reflection
of investor views about the Village’s credit strength. Those maturities would be the most relevant
indicators for estimating how the Village’s next issuance might price in the primary market. The
longer maturities, however, were not particularly useful indicators in this case because the
Village would not issue bonds with coupons of two or two and a half percent in today’s market.
That would only occur if interest rates declined dramatically and the federal funds rate returned
to near-zero levels similar to those seen several years ago. While that scenario had occurred once
before, he noted that it was highly unlikely in the foreseeable future.
Chair Sheperd recalled that during the previous meeting the Committee had discussed how the
value of the tax exemption changes along different points of the yield curve. As bonds extend
further out on the curve, the tax effect diminishes. At the time, they had referenced an assumed
value of 0.65 for shorter bonds and 0.85 for longer ones. Mr. Kim confirmed that this reflected
the same dynamic he had been describing.
He added that the analysis had been interesting for both him and PMA to review. Ultimately,
however, the trading behavior on the longer maturities would not provide meaningful guidance
as the Village prepared for a bond issuance within the next six to twelve months.
Trustee Steen then asked Mr. Kim to walk through the mechanics again to ensure he understood
correctly. He noted that yield to maturity incorporates the coupon of the bond and said he
understood that the Village would issue bonds with coupons more consistent with those being
issued in today’s market. Mr. Kim confirmed that understanding. Trustee Steen continued that
because yield to maturity includes the coupon, it should already balance the effect of lower
coupon amounts.
Chair Sheperd interjected, noting that some of the bonds in the example were trading at roughly
105 while others were trading closer to 95. Mr. Kim explained that the longer bonds would be
discount bonds because their coupons were lower than current market yields. Trustee Steen
agreed with the concept but noted that the directional explanation had been reversed. Mr. Kim
clarified that the key point was that the cash flow on those longer bonds was still only about 2.5
percent. An investor comparing that cash flow to a bond with a 5 percent coupon of similar credit
quality would demand additional yield to compensate for the weaker income stream. That
requirement for additional compensation appears in the market as a wider trading spread.
Chair Sheperd remarked that the effect still seemed related to duration risk.
Ms. Molloy then added context from the Village’s past financing decisions. When the Village
first began issuing debt for the stormwater project, particularly during the first tranche, staff spent
significant time discussing the coupon structure. At that time, the Village made a deliberate
decision to take as much of the savings upfront as possible. The reasoning was that no one knew
what interest rates would look like by the time the Village reached later stages of the multi-series
stormwater financing plan. When the first issuance occurred, interest rates turned out to be
extremely low, and staff believed the Village should take advantage of that opportunity,
especially knowing that at least two additional bond series would follow.
She explained that after reviewing the available coupon structures, the Village chose to issue
bonds in a way that maximized the savings when they were needed most. Mr. Kim’s description
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of the lower coupons on the long-dated bonds reminded her of that earlier decision-making
process. At the time those stormwater bonds were issued, the Village fully understood the
implications. As those bonds approach their call dates, there is a strong possibility they will not
be refunded because the Village already captured most of the available savings at the time of
issuance.
In that sense, the chart Mr. Kim presented essentially validated what the Village expected when
those decisions were made. While the information was helpful, it largely confirmed that market
forces would ultimately dictate many outcomes. The bonds were intentionally structured to
maximize the Village’s advantage at issuance. As a result, when the call dates approach, they are
unlikely to be favorable candidates for refunding because the financial value has already been
realized.
Ms. Molloy added that when she and Mr. Kim discussed the data earlier, the interpretation was
that it simply reflected the Village’s earlier decision to use lower coupons to capture savings
upfront. She remembered those conversations clearly and noted that former President Bielinski
had been involved at the time. The Village had openly discussed the couponing strategy and
deliberately structured the bonds to benefit the Village early in the financing program.
In her view, the chart simply confirmed the mechanics behind that choice. In today’s interest rate
environment, the Village would likely not be discussing coupon structure in the same way it had
years ago. The main takeaway is that each issuance must be evaluated at the time it occurs
because no one can predict which market variables will be present. Ultimately, every issuance
depends on market conditions, and she did not expect coupon structure to play the same role in
future decisions as it did during the stormwater financing.
Ms. Molloy said she did not believe coupon structure would be the central decision point moving
forward. The larger question would be how much the Village wants to accomplish in the first
tranche if it proceeds with two issuances. That decision would also involve determining whether
the Village wishes to mitigate interest rate risk by adjusting the structure of the first issuance,
particularly how much of that tranche would be placed on the longer end of the maturity schedule.
She believed that issue would shape the discussion surrounding the first tranche if the Village
ultimately chose a two-series approach. For that reason, she again emphasized that couponing
itself was unlikely to be the primary question this time.
She also noted that the stormwater financing process had been unique. The Village responded to
the circumstances that existed at that time, and the results now appear in the secondary market in
ways that can look unusual without that context. It does not reflect anything negative about the
Village. In fact, once the role of the coupon structure is understood, the pattern makes complete
sense. When PMA first showed her the chart, she immediately noticed two distinct patterns and
asked them to include the vertical dividing line on the graph. Once Mr. Kim explained that the
difference was driven by coupon structure, the entire pattern aligned with the decision the Village
made years earlier.
Trustee Kennedy recalled that the Village also had considerable leverage in the market at that
time because the municipal market was extremely thin. Very few municipalities were issuing
bonds in 2021 since relatively few capital projects were moving forward.
Ms. Molloy agreed, noting that it had been an unusually favorable environment. Trustee Kennedy
added that it was a rare moment in which the Village was able to dictate terms that might not
have been possible under normal market conditions.
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Mr. Kim noted that the proposed bond issuance could potentially result in discount bonds,
although nothing close to the levels reflected in the current data. While anything is possible, the
more realistic scenario would be something like a 4 percent coupon producing a 4.1 percent yield
rather than a 2 percent coupon producing a 5 percent yield. A difference of that magnitude would
not be expected.
Chair Sheperd noted that the Committee wanted to avoid being surprised on the day of sale by
an unexpected spread. From the previous meeting, they understood how sensitive spreads could
be, but the worst outcome would be arriving at the pricing table and discovering that the numbers
no longer aligned with the expectations the Village had been working from.
Mr. Kim agreed and explained that one of the ways PMA avoids that situation is by contacting
underwriters in advance of the sale. PMA reaches out to firms and lets them know that Wilmette
is planning a bond sale, that the Village holds a AAA rating, that the expected final term will be
between twenty and thirty years, and that the size of the issuance will likely fall somewhere
between thirty and fifty million dollars. The firms are asked whether they would be interested,
and PMA gathers interest from underwriters that regularly participate in the Illinois and Chicagoarea municipal markets.
Trustee Kennedy recalled that during the stormwater financing the Committee had been receiving
daily updates in the final weeks leading up to the sale. Chair Sheperd added that he had also been
surprised by how actively some of the near-term bonds had traded. Mr. Kim agreed, noting that
he had also found the level of activity surprising.
Trustee Steen asked whether that level of trading was typical. Mr. Kim explained that PMA
generally prefers to sell bonds to underwriters who intend to place them directly with end
investors who plan to hold them rather than trade them. That approach typically produces the
lowest interest cost for the issuer. Even so, he acknowledged that the level of trading reflected in
the data had been somewhat surprising. As Chair Sheperd noted earlier, investment managers
have different objectives. Some may be adjusting portfolio duration, others repositioning for tax
considerations, and others trading discount bonds for internal portfolio strategies. Each investor
is responding to its own priorities, and the issuer rarely has visibility into those motivations.
Mr. Kim then moved to the next section of the presentation, which focused on possible bond
structuring options. The first set of scenarios examined a single-issuance plan of finance. PMA
had prepared four scenarios, and the page currently displayed summarized those options.
Scenario One served as the baseline. Under this scenario, the Village would complete a thirtyyear financing and borrow the entire $50,500,000 project cost with no contribution from
operating reserves. The question PMA examined was whether the Village could complete that
financing while staying within the $3,750,000 bond and interest levy constraint. The answer was
yes. Under Scenario One, the average annual debt service would be approximately $3,670,000,
about $70,000 below the limit.
Scenario Two also assumed a thirty-year financing but included a $6,250,000 contribution from
reserves. That number was selected deliberately. PMA had reviewed Moody’s rating scorecard
and evaluated how different levels of fund balance contributions would affect the Village’s
financial metrics. Their analysis suggested that $6,250,000 represented the approximate tipping
point where the fund balance indicator began to shift. At $5,000,000, the metric did not move; at
$10,000,000 it moved slightly. During the previous meeting, a Committee member had asked
where that tipping point might be. PMA’s analysis indicated that it occurred at approximately
$6,250,000, based on their interpretation of Moody’s methodology. Mr. Kim added that Moody’s
9

could ultimately apply its own interpretation, but the figure reflected PMA’s analysis of how the
scorecard operates. Under the thirty-year financing in Scenario Two, with a $6,250,000
contribution from reserves, the annual debt service would fall to roughly $3,200,000 to
$3,300,000.
Mr. Kim then described Scenario Three and Scenario Four. These scenarios were similar to
Scenario One but used shorter repayment terms. Scenario Three assumed a twenty-five-year final
maturity, while Scenario Four assumed a twenty-year final maturity. Under those shorter
repayment structures, the Village could not remain within the $3,750,000 annual bond and
interest levy limit unless it contributed additional funds from reserves.
For Scenario Three, the twenty-five-year financing, the Village would need to contribute
approximately $3,400,000 from reserves to stay within the levy constraint. Scenario Four, the
twenty-year financing, would require a larger reserve contribution of approximately $9,300,000.
Mr. Kim also noted that the true interest cost declines as the repayment term shortens, which is
the expected pattern.
Trustee Steen then asked for an explanation of how true interest cost is calculated. Mr. Kim
explained that true interest cost incorporates the yields on the bonds as well as the underwriter’s
discount. Every financing also includes other expenses, such as PMA’s advisory fee, legal costs,
rating agency fees, and other issuance expenses, but those items are not included in the true
interest cost calculation. True interest cost reflects only the bond yields and the underwriter’s fee.
He further explained that when the Village sells bonds, PMA awards the sale to the bidder
offering the lowest true interest cost. Underwriters submit their proposed yields along with their
underwriting fee. Because they do not know what PMA charges, what the attorneys charge, or
what the rating agencies charge, they cannot include those costs in their proposals. Their bids
therefore reflect only the yields and the underwriting discount; costs they control directly. PMA
then evaluates the bids and selects the lowest aggregate true interest cost.
Trustee Steen then asked how issuance costs typically compare to the underwriting fee and
whether there was a rough estimate for the proportion of issuance costs relative to underwriting
costs. Mr. Kim responded that when PMA prepares preliminary financing scenarios, they often
assume that issuance costs and the underwriter’s discount are roughly equal. This fifty–fifty split
is simply a general approximation used for planning purposes.
Mr. Kim explained that in practice underwriters often accept very low fees when they know the
bonds will be quickly placed with investors who want them. For a credit such as the Village of
Wilmette, which carries a AAA rating, underwriters know the bonds will sell easily and are
therefore willing to reduce their fees to remain competitive.
He noted that he had occasionally seen situations where an underwriter accepted an almost
negligible fee because the bonds were expected to sell immediately. In one example involving a
highly rated issuer, though not AAA, the bond sale totaled about $20 million and the
underwriter’s fee was only $10,000. In PMA’s terminology, that equated to about fifty cents per
bond. Under normal circumstances, PMA would expect something closer to five dollars per bond,
which would typically produce a fee around $100,000 for a transaction of that size. In that
particular case, however, the underwriter accepted the lower fee because the bonds were expected
to be placed instantly.
Mr. Kim described the level of participation PMA typically sees during a bond sale. Most
transactions attract between five and ten bidders. As an example, he referenced a recent bond
10

sale PMA conducted for the Village of Bloomingdale, a AA-rated community. That transaction
drew eight bidders. If Wilmette were to issue bonds in the $52 million range with a final maturity
of twenty-three or twenty-five years, he would expect similar participation. Even with a thirtyyear final term, Wilmette’s AAA rating would likely attract very strong bidding.
Chair Sheperd asked what the total interest cost had been in the Bloomingdale sale. Mr. Kim
responded that it came in at approximately 4.27 percent, which was close to the figures PMA had
been using in its scenarios. He added that if Wilmette issued bonds today, its pricing would likely
be slightly better than Bloomingdale’s because Bloomingdale carries a AA rating while Wilmette
holds a AAA rating.
Chair Sheperd asked whether the estimated net debt service also included the Village’s existing
debt obligations. Mr. Kim explained that it did not. The scenarios being reviewed included only
the proposed financings, which is why the variation among the scenarios appeared so significant.
He noted that the next slides would provide additional detail and graphical illustrations for each
scenario.
Mr. Kim then returned to Scenario One. Under that scenario, the Village remained just below the
$3,750,000 annual bond and interest levy limit even without contributing reserves. The annual
debt service remained approximately $70,000 below the limit each year. That margin effectively
represented additional bonding capacity of roughly $1,100,000. He explained that if the Village
needed to borrow again over a thirty-year term, the $70,000 annual margin would allow
approximately $1.1 million in additional borrowing capacity.
Mr. Kim then revisited Scenario Two. With a $6,250,000 contribution from reserves, the annual
debt service fell significantly below the levy constraint by roughly $475,000. That margin
translated into approximately $7,700,000 in additional bonding capacity.
He then reviewed Scenario Three, which used a twenty-five-year final term. To keep the
financing within the levy limit, the Village would need to contribute approximately $3,400,000
from reserves. Scenario Four assumed a twenty-year final term and required a larger reserve
contribution of $9,300,000. At that level of contribution, PMA believed the Village could begin
to affect its credit rating.
Chair Sheperd asked whether the potential impact on the Village’s credit rating had been
reflected in the interest rates shown in the scenarios. Mr. Kim explained that it had not. All of
the interest rate assumptions used in the scenarios assumed a AAA-rated financing and did not
incorporate the possibility of a rating change.
Mr. Kim then moved to the section covering the two-issuance scenarios. In all of those scenarios,
PMA assumed that interest rates would remain unchanged between the 2026 issuance and the
2027 issuance.
He displayed the summary of the two-issuance plan. Scenario One was included again as the
baseline for comparison. PMA then added four additional scenarios labeled Five, Six, Seven-A,
and Eight-A. He noted that the lettering would become clearer when the Committee reviewed the
detailed slides.
He began with Scenario Five. Under this structure, the Village would complete two financings,
with half of the total project cost issued in 2026 and the remaining half issued in 2027. Scenario
Five assumed no contribution from reserves.
Scenario Six also involved two issuances, but the structure differed. In this case, $30,500,000
11

would be issued in 2026 with a thirty-year final maturity, and $20,000,000 would be issued in
2027. This differed from Scenario Five because Scenario Five matched the final terms of both
issuances, with the 2026 bonds maturing in thirty years and the 2027 bonds maturing in twentynine years, producing level annual payments. Scenario Six intentionally backloaded the first
issuance and paired it with a shorter second issuance. This structure was designed to help mitigate
interest rate risk and provide additional flexibility if interest rates rose between 2026 and 2027.
Although PMA assumed stable interest rates in the scenario modeling, the structure still provided
a cushion against potential increases.
Mr. Kim then pointed to the pink line shown in the illustrations, explaining that it represented
investment earnings on bond proceeds. Investment earnings are highest in the one-issuance
scenario because the Village would invest the entire bond proceeds at the beginning and hold
them for a longer period.
He then introduced the concept of “net estimated cost to the Village for breakeven analysis.”
This figure is calculated by subtracting investment earnings from the total debt service cost. Mr.
Kim emphasized that PMA was not suggesting that investment earnings would be used to pay
debt service. Instead, the net figure serves as a comparison tool that allows the Committee to
evaluate how the overall cost changes when proceeds are invested for different lengths of time.
Mr. Kim drew attention to two yellow cells on the screen, explaining that they showed how much
interest rates would need to increase between the first and second issuance for each scenario to
become equivalent to the baseline. Scenario Six, the interest rate risk mitigation scenario,
provided a larger buffer, with a forty-basis-point cushion compared to a twenty-five-basis-point
cushion in the version where both issuances had level annual payments.
He then described Scenarios Seven-A and Eight-A. Both followed a structure similar to Scenario
Six but used shorter final terms. Scenario Seven-A assumed a twenty-year final term for the first
issuance and a nine-year final term for the second issuance. That structure required a reserve
contribution of approximately $9 million, more precisely $8,980,000. Scenario Eight-A followed
the same general concept but used a twenty-five-year final term instead of twenty years, which
reduced the required reserve contribution.
Trustee Kennedy asked when the reserve contribution would actually occur, whether it would be
applied during the first issuance, the second issuance, or divided between the two. Mr. Kim
recommended that the Village spend the bond proceeds first because there are legal restrictions
on how those funds must be used. Under that approach, the Village would use the borrowed funds
throughout the project and apply any reserve contribution at the end of the project, near the final
stages of spending.
Trustee Steen then asked Mr. Kim to clarify the meaning of the gray line labeled “estimated net
cost to the Village for breakeven analysis.” Mr. Kim explained that the gray line simply
represented the difference between total debt service and the investment earnings generated from
bond proceeds.
Using Scenario One as an example, he noted that the total debt service cost was approximately
$97,423,000, while the estimated investment earnings were about $1,796,000. The resulting
difference, roughly $95.6 million, was the figure shown in the gray line.
Trustee Steen commented that the wording “for breakeven analysis” had been confusing because
it was not immediately clear what the phrase meant in that context. Mr. Kim agreed that the label
could have been clearer and said that “for comparative purposes” would probably have been a
12

better description.
Chair Sheperd then asked why the breakeven comparison was not shown for Scenarios Seven-A
and Eight-A. Mr. Kim explained that those structures differed so substantially from the baseline
that a breakeven comparison would not be meaningful. Scenario Seven, for example, produced
a total cost roughly $30 million lower because of its much shorter term. Any breakeven
calculation in that case would produce extremely large figures that would not be useful for
analysis.
Trustee Steen then returned to an earlier point regarding the effect of reserve contributions on
the Village’s credit rating. He said he understood Mr. Kim to have indicated that contributing
approximately $9 million from reserves could potentially be viewed negatively by Moody’s. In
his view, it was difficult to reconcile why Moody’s would view the Village differently if it used
$10 million in cash on a $100 million project versus borrowing the full $100 million and keeping
the $10 million in reserves. From his perspective, both situations produced the same net financial
position, which made it difficult to understand Moody’s reasoning.
Mr. Kim explained that although the two situations might appear equivalent, Moody’s does not
treat them as equivalent under its rating methodology. The Village’s liability score is already the
weakest component of its credit profile, while its fund balance score is the strongest. Even if the
changes in both categories appeared similar numerically, the rating impact would differ.
Increasing debt slightly would not significantly change the liability score, while reducing
reserves directly affects the Village’s strongest metric. As a result, drawing more heavily from
fund balance could lower the Village’s fund balance score.
Ms. Molloy added to the discussion by stating that strong reserves give a government the ability
to respond to unexpected events in the short term. When an unforeseen issue arises, a healthy
reserve allows the Village to respond quickly and remain financially nimble. Borrowing more
debt, by contrast, creates an obligation that can be amortized over time while the Village adjusts
fees or implements other fiscal measures. In her view, that distinction between immediate
financial flexibility and long-term amortization likely explains why rating agencies place such
emphasis on fund balance levels.
Trustee Steen agreed that he had thought about the issue in a similar way and said the explanation
made sense. From his perspective, if the Village chooses to take on additional debt, he would
feel more comfortable if the Village made a clear commitment not to spend down its reserves
afterward. If the Village explicitly committed to maintaining those reserves, the additional
borrowing would be easier to justify. On the other hand, if the Village later used those reserves
for another project, such as a water project, it would ultimately end up in the same position as if
the reserves had been used at the outset rather than borrowing the extra funds. That outcome
would not necessarily be problematic, but he believed it was important to acknowledge that
possibility.
Ms. Molloy noted that this discussion also related to an earlier question from Trustee Kennedy
and reflected her own takeaway from the scenarios she had asked PMA to develop. She had
requested the scenarios as a way to think through a potential two-issuance structure. At this stage,
she suggested that the Village focus on a first tranche of approximately $30 million.
She encouraged the Committee to consider carefully how long the term of that first issuance
should be. A twenty-five-year term, in her view, deserved serious consideration. The Village
should also think about how to structure the first issuance in a way that takes advantage of the
current shape of the longer end of the yield curve.
13

If the Village structured the first issuance thoughtfully, it could create both certainty now and
flexibility later. By the time the Village reached 2027, it would have more precise information
about the final cost of the project, any changes in scope, and the timing of construction
completion. At that point, the Village would be better positioned to determine the appropriate
size of the second tranche. The Village would also have a clearer understanding of how much
reserve contribution it was comfortable making and how other financial considerations might
interact with the police station project.
In her view, the scenarios provided the Committee with time and flexibility to evaluate those
decisions rather than forcing every choice to be made immediately.
Trustee Steen said he understood the point and did not yet agree or disagree with the approach
but thought it was a useful way to frame the discussion. The conversation also highlighted, in his
view, the importance of clarifying what the Committee was ultimately trying to optimize.
Flexibility is one objective, total cost is another, and interest expense is another. He suggested
that the Committee should be as explicit as possible about which goals it was prioritizing and
how it intended to balance those considerations when evaluating the different scenarios.
Chair Sheperd said he agreed with the direction of the conversation and noted that he had been
about to raise a similar question. He wondered whether the Committee should be focusing on
minimizing the average annual debt service levy. Years earlier, they had envisioned having
approximately $1.4 million in additional debt capacity for roadway improvements within the
existing limit. In some of the current scenarios, the remaining capacity appeared quite limited.
He asked whether lowering the average levy was something the Committee was actively trying
to optimize. In his view, clearly defining those priorities would be important.
Trustee Kennedy responded that this was precisely why she found it difficult to discuss
affordability as though the police station were the Village’s only project. In many earlier
discussions, the financing had been framed around keeping the debt for this project under a
specific limit. That approach did not make sense to her because the Village has many other
projects and priorities that also require funding. Without considering those needs, it was
impossible to determine whether the police station financing was truly affordable. Looking at the
project in isolation, she said, did not provide enough information.
Ms. Molloy asked to add a point, noting that Trustee Kennedy had raised an important conceptual
issue that had influenced how the scenarios were developed. That was the reason she had asked
PMA to include additional levy capacity on several slides. The goal was to illustrate how much
borrowing capacity would remain under different scenarios so the Village could address other
projects in the future.
She explained that one example compared a thirty-year bond with a twenty-five-year bond. While
she did not want to cite the exact figures at that moment, the principle was straightforward:
shortening the bond term from thirty years to twenty-five frees up debt capacity five years earlier.
That earlier capacity could allow the Village to pursue another project sooner if necessary.
At the same time, the scenarios also demonstrated that the Village could afford the police station
under the existing debt service cap without using reserves, assuming current interest rates remain
in place. That represents one possible path: proceed without drawing on reserves while
recognizing that doing so would use most, but not all, of the available debt capacity.
Alternatively, if the Village chose a twenty-five-year structure and contributed some reserves,
the amount required from reserves would be relatively modest. That approach would also create
14

greater financial flexibility for other projects later on.
Ms. Molloy said the purpose of developing multiple scenarios was to demonstrate that the Village
has both time and flexibility to think through its decisions. As the Committee receives additional
reports in the coming months about other needs and priorities, members can return to these
scenarios and consider whether the structure of the police station financing should be adjusted to
make room for those future projects.
She added that this was exactly why she had asked PMA to build so many variations. The
Committee first needed to determine its priorities. The initial question had simply been whether
the Village could afford the police station within the constraints it had already established. That
question had effectively been answered at the previous meeting, when PMA demonstrated that
the project was affordable under the original parameters.
With that baseline established, the next question became why the Village might want to consider
a two-issuance approach. The reasons relate directly to the issues the Committee was now
discussing: maintaining flexibility, accommodating other priorities, and planning for possible
future projects. One way to think about the two-issuance structure, she suggested, was to assume
that the Village might need roughly $30 million in the first tranche to comfortably begin
construction and cover early project costs. That structure would then give the Village about a
year to evaluate how to structure the second tranche.
Chair Sheperd asked whether a thirty-year structure would offer the most optionality. Ms. Molloy
replied that it could. For example, the Village could issue the first $30 million tranche with a
thirty-year term and later structure the second tranche in a way that maximizes flexibility.
Chair Sheperd asked whether that approach essentially corresponded to Scenario Six. Ms. Molloy
agreed that it did. With so many scenarios, she noted, it was easy to lose track of the details. She
added that both Mr. Kim and Mr. Pinkerton deserved credit for that. She had repeatedly asked
them to rework the analysis from different angles and to test additional configurations. Scenario
Six, she said, did capture the general approach he was describing.
Chair Sheperd then commented on how the discussion had been framing the use of reserves.
Rather than saying the Village would be “tapping into reserves,” he preferred to think of it as
using “excess reserves,” given the strong financial position the Village currently enjoys. In his
view, that description was more accurate. Ms. Molloy agreed and said that was a helpful
clarification.
Mr. Kim then offered an additional perspective on Ms. Molloy’s remarks. Looking at Scenario
Two, he reminded the Committee that it was part of the one-issuance structure, though the same
concept could apply to a two-issuance plan as well. When the Village contributes $6,250,000
from reserves, it creates additional annual capacity under the $3,750,000 levy cap.
That additional capacity does not have to be used evenly across all thirty years. The Village could
choose to maximize the full $3,750,000 capacity during the first five or ten years and then allow
the annual payments to decline afterward. Structuring the financing that way would increase
future borrowing capacity and provide additional room if the Village wanted to undertake another
project several years down the road.
He emphasized that the scenario shown on the screen represented only one possible
configuration. The Village could manipulate the same structure in various ways to create
additional scenarios that might provide even greater flexibility.
15

Addressing Trustee Kennedy’s earlier point, Mr. Kim acknowledged that the analysis did initially
examine the police station project somewhat in isolation. The starting question had been narrow:
could the Village finance this project within the existing constraints?
Trustee Kennedy noted that one of the key reasons for using two tranches was the point raised
earlier: the Village does not want to pay interest on funds it is not yet ready to spend. She then
asked whether the expected spending curve for the project had been incorporated into the analysis
and whether there was any sense of how expenditures would unfold over time.
Mr. Kim responded that PMA had not yet incorporated a spending curve into the scenarios, which
was one reason the two-issuance approach generally appeared more favorable.
Ms. Molloy agreed, noting that she was nodding as Trustee Kennedy spoke because the Village
had not yet reached that stage of the project. They did not yet know the spending curve.
Conceptually, however, it made sense to issue bonds in the fall, closer to the point when the
Village would begin spending more heavily in the spring. By that time, the Village would also
have much better information about the spending schedule. That timing was part of the reason
staff had recommended a fall issuance.
Chair Sheperd said he understood the reasoning but pointed out that waiting until fall would
expose the Village to interest rate risk between spring and fall. Ms. Molloy responded that the
risk moved in both directions, since interest rates could rise or fall.
Chair Sheperd acknowledged that point but noted that the Committee knew where rates stood at
the moment. He emphasized that he was not making a prediction but simply raising the question
of whether it might be better to lock in earlier. Ms. Molloy replied that she did not believe the
Village should attempt to time the market. Historically, trying to time the market had not worked
in the Village’s favor, or for most issuers. Chair Sheperd clarified that he was not suggesting the
Village try to time the market either, only that waiting inevitably introduced uncertainty
Trustee Kennedy observed that the last bond issue had been simpler because it involved three
distinct components. The Village knew exactly how much was needed for each part, and each
phase was completed within a single year, providing clarity and control. In comparison, the police
station project was more complex.
At that point, Erik Hallgren added that the Village had only recently begun the bid process, within
the last several days. Much more information about the project’s actual cost would become
available over the next few weeks. As Ms. Molloy had explained earlier, the scenarios PMA
developed were intended to illustrate the range of structuring options and the flexibility available
within them.
Mr. Hallgren noted that this also related to Trustee Steen’s earlier question about what the Village
was trying to optimize. As the Village received updated reports in January and February
regarding road conditions and the needs of the road program, the broader financial picture would
become clearer. Those reports would identify which roads were in serious condition and which
were in very poor condition, information that would help guide the Village’s overall financing
strategy.
Mr. Hallgren said the Village already knew that the first tranche would need to be at least $30
million. At the same time, it was clear the total project cost would not be as low as $30 million.
The uncertainty surrounding the full cost, estimated at roughly $50 million, was what made the
second tranche necessary. That uncertainty also made flexibility an important consideration.
16

He explained that the Village needed to decide whether it preferred to reduce overall annual debt
service to maximize funding for the road program, particularly if the goal was to address roads
in serious or very poor condition. One option would be to lengthen the term of the police station
bonds, lowering annual debt service and freeing up levy capacity for roads. Another option would
be to shorten the term so the police station debt would be retired sooner, recognizing that the
Village may face new capital needs twenty years from now involving buildings, infrastructure,
or other long-term projects. A shorter term would allow the $3,750,000 levy to fall off earlier,
creating borrowing capacity sooner rather than extending payments until 2057.
Trustee Steen said the discussion had been helpful and that he appreciated the clarification. He
then asked about something Mr. Hallgren had mentioned earlier, that the Village would know
more about project costs in the fall than in the spring. He wanted to understand what the expected
cash outlay might be between spring and fall.
If the Village waited until fall to issue the first tranche, he noted, it would need to rely on some
amount of cash, what the Committee had been referring to as excess reserves, before the bonds
were issued. He asked how large that amount was expected to be.
Ms. Molloy responded that she could not provide an exact figure at that moment but explained
that the Village had already adopted a reimbursement ordinance. That ordinance allows the
Village to reimburse itself for project expenditures once the bonds are issued. To date, the Village
had already spent approximately $1.8 million on the project.
Mr. Hallgren confirmed that figure. Ms. Molloy explained that those expenditures covered design
work and other early project activities. If construction began in the spring, the Village might
spend an additional $1 million to $1.5 million before the fall issuance, although the exact amount
remained uncertain.
She also noted that even when construction begins, invoices do not arrive immediately. While
that might seem unusual when discussing the project in theory, her experience had consistently
been that billing lags behind the actual work. In her view, the heavier financial demands would
likely begin later in the summer, when invoices start arriving more regularly. She acknowledged
that the delay in invoicing can be difficult to explain but said it had been her consistent
experience.
Mr. Hallgren added that the final invoice for the Neighborhood Storage Project had only recently
been received. Ms. Molloy confirmed that it had arrived roughly a month earlier.
Chair Sheperd said it would therefore be reasonable to request an estimate of the expected cash
outflow schedule. Ms. Molloy agreed that staff could certainly provide that information.
Trustee Kennedy noted that at least one category of expenses would occur before construction
even began. The Village would need to relocate operations to temporary facilities, and the costs
associated with that move would occur before ground was broken.
Ms. Molloy agreed. Those relocation costs would indeed occur early in the process. She also
explained that every expense goes through a full internal review before it reaches the Finance
Department as an invoice requiring payment. While she agreed with Trustee Kennedy’s point,
she reiterated that the full flow of construction invoices would not begin immediately when work
starts. The process always takes time.
Chair Sheperd then asked whether the Village was certain it wanted to reimburse itself for those
early expenditures once the bonds were issued. Instead, he wondered whether those initial
17

expenses could simply be treated as the reserve contribution at the beginning of the project.
Ms. Molloy replied that the Village could ultimately make that decision either way, depending
on what made the most strategic sense. As Mr. Kim had explained earlier, when bonds are issued
the Village generally wants to spend the bond proceeds quickly. That is one of the advantages of
issuing debt. At the same time, the Village must declare in advance which expenditures it intends
to reimburse. When bonds are issued, the reimbursement amounts must be documented in the
authorizing ordinance..
Chair Sheperd recalled that the Committee had protected the Village with the reimbursement
ordinance. Ms. Molloy confirmed that the ordinance allowed the Village to reimburse itself for
project expenditures. However, she suggested that the best time to decide how much should
ultimately come from reserves versus bond proceeds would be toward the end of the project,
when the Village had a clearer view of the overall financial picture. Waiting until that point
would allow the Committee to see all of the remaining pieces and choose the option that best
served the Village. In her view, making the decision later would provide an important advantage.
Trustee Kennedy added that there was another reason to reimburse the Village as soon as
possible: investment income. When the Village invests its own reserve funds, it does not have to
worry about arbitrage limits. If the Village instead holds unspent bond proceeds, those funds
cannot be invested at a rate higher than the bond yield. Investing reserve funds rather than bond
proceeds might therefore allow the Village to earn a higher return. She acknowledged, however,
that achieving a meaningful gain would require a significant amount of favorable market timing
and good luck. Even so, the theoretical possibility existed.
Trustee Steen then reflected on the broader conversation. From his perspective, two major
dimensions were emerging, although he acknowledged that he might not be capturing everything.
One dimension was the total economic cost of the financing, including considerations such as
discounted present value. Another dimension was the annual debt service payment. Both of those
factors were clearly part of the Committee’s discussion.
He then noted that the Committee had also been talking about flexibility but said he wanted to
better understand what exactly that term meant in this context. One possible definition might be
the amount of cash the Village would have available over the next three to five years, but that
was only one potential measure. When people refer to flexibility, they often mean something
broader, so he suggested the Committee define the term more precisely, or at least agree on what
they meant by it.
Trustee Steen said another possible dimension was the desire to reimburse project costs as soon
as possible, although he was not certain whether that should be considered a true dimension or
simply a procedural decision. He asked what other dimensions the Committee might be weighing
and emphasized the importance of understanding the trade-offs involved.
Mr. Hallgren responded that when he thought about flexibility in this context, he viewed it as the
Village’s ability to influence the other dimensions under discussion. Flexibility, in his view, was
not a goal in itself but rather a means of achieving whatever goals the Board ultimately
established. The Village’s flexibility lies in its ability to adjust the bond term, the size of the
issuance, or the use of excess reserves depending on which outcomes the Board wishes to
optimize. That was how he had interpreted the concept during both this meeting and the previous
one.
Trustee Steen asked how the Committee would determine whether the Village had more or less
18

flexibility. In other words, how could flexibility be measured? Mr. Hallgren replied that the
current analysis showed that, based on the project estimate and current interest rates, the Village
could complete the police station project while remaining under the levy threshold. Because of
that, the Village had room to adjust other variables, such as the duration of the bonds or the
amount of reserves used, to align the financing structure with the Board’s policy priorities. In
that sense, flexibility meant the Village had the ability to maneuver within the financing structure.
Chair Sheperd added that credit rating considerations were also an important dimension. Trustee
Steen agreed. While he did not want to continue listing dimensions indefinitely, he believed it
would be helpful for the Committee to clearly identify the factors it intended to balance. Once
those dimensions were defined, the Committee could then discuss how to weigh one against
another. He added that he had nearly forgotten another dimension: the final maturity date of the
debt.
Trustee Steen then shifted the discussion to another related consideration: the timing of the “step
down.” By that he meant the point at which the Village would once again have borrowing
capacity available under the levy cap if it chose a particular financing structure.
Mr. Kim said he had been thinking about that same issue moments earlier. Essentially, the
question was when the Village would be able to issue debt again. If the Village used its full debt
profile for thirty years, it would not regain capacity until the end of that period. If the Village
instead chose a twenty-five-year structure, the borrowing capacity would return after twenty-five
years, and so forth.
Trustee Kennedy noted that this assumption depended on the levy cap still being in place. Trustee
Steen agreed, repeating that point: the analysis assumes the cap remains unchanged.
Chair Sheperd observed that there appeared to be a trade-off between the duration of the debt
and the ability to maintain structural capacity below the $3,750,000 limit that could be allocated
to other needs on an ongoing basis. The Committee would need to think carefully about how to
balance those considerations. While the difference between total debt service amounts, such as
$95 million versus $62 million, was significant, other factors also had to be considered.
Ms. Molloy commented that this type of discussion was exactly what staff had hoped would
occur when presenting the scenarios. The purpose of the scenarios was to help the Committee
identify the key decision points and understand the different ways the Village could structure the
financing. She offered to refine the terminology further if that would help clarify the concepts.
In her view, the discussion demonstrated that the Village truly had flexibility to address potential
issues that might arise in future years, and those choices would become part of the Committee’s
decision-making process. That was precisely why staff had presented multiple scenarios.
Mr. Kim continued explaining that Scenario Six was the structure in which the first bond issuance
is back-weighted in order to mitigate interest rate risk, assuming a thirty-year final maturity.
Trustee Steen then raised a process question. At the beginning of the meeting, the Committee
had identified two pieces of guidance it hoped to provide. The first was whether the Village
should pursue one bond issuance or two. The second was whether the issuance should occur in
the summer or the fall of 2026.
He noted that the discussion had been very productive. He had skimmed ahead through the
remainder of the packet but had not yet heard the views of the other Committee members. His
question was simply how comfortable the Committee felt about moving toward providing
direction on those two issues.
19

Chair Sheperd said he believed the Committee could likely reach those decisions. He agreed with
Trustee Steen that it would be useful to take a closer look at Scenarios 7A and 8A before
finalizing any recommendations.
Mr. Kim then walked through those scenarios. The primary variable in both 7A and 8A was the
final maturity of the debt. Scenario 7A limited the final term to twenty years. To achieve that
structure, the Village would need to contribute significantly more from excess reserves,
approximately $9 million. In essence, Scenario 7A answers the question: how much would the
Village need to contribute to keep the financing within a twenty-year term?
Scenario 8A followed a similar concept but used a twenty-five-year final term. Under that
structure, the required reserve contribution would be approximately $2,780,000.
Mr. Kim then addressed what could happen if interest rates moved against the Village between
the 2026 and 2027 issuances. Scenarios 7B, 7C, 8B, and 8C were designed to illustrate that
possibility by assuming a 150-basis-point increase in interest rates between the first and second
issuances. Ms. Molloy noted that a 150-basis-point change would be a very significant shift. Mr.
Kim agreed that it represented a large movement.
Under Scenario 7B, assuming interest rates were 150 basis points higher and the Village
contributed $8,980,000, the financing would have to extend beyond the twenty-year limit in order
to remain within the annual levy structure. Because maturities would extend into years twentyone and possibly twenty-two, the resulting interest carry would push the annual debt service
above the $3,750,000 cap by roughly $25,000 per year for several years.
Scenario 7C examined the same interest-rate increase but assumed a smaller reserve contribution
of $6,250,000 instead of $9 million. Under that structure, two additional years of maturities, years
twenty-one and twenty-two, would also be required, with both years coming very close to the
levy cap. The interest carry associated with those additional maturities totaled approximately
$405,000. Because the Village’s annual debt service limit is a firm threshold, any amount above
that cap would need to be funded from operating surpluses or operating reserves.
Ms. Molloy added an important clarification. While she did not want to complicate the analysis,
the time frame of those maturities would likely give the Village an opportunity to refund the
bonds in the future. This was one situation where the earlier discussion about coupon structures
and the secondary market became relevant. In today’s environment, the Village would almost
certainly not issue bonds with coupon structures that prevented refunding opportunities. There
would likely be a chance to refund the bonds later and create additional space within the debt
structure.
Trustee Kennedy asked when the bonds would first become callable. Ms. Molloy explained that
the standard call period is ten years. While it might be possible to structure a shorter call period,
doing so usually involves additional costs. For that reason, ten years is the typical structure and
something the Committee should keep in mind when reviewing the scenarios.
Mr. Kim then turned to Scenarios 8B and 8C, which both used twenty-five-year final maturities.
In Scenario 8B, the amount exceeding the levy cap would be approximately $270,000 per year.
In Scenario 8C, however, the $6,250,000 reserve contribution created a substantial cushion. Even
with a 150-basis-point increase in interest rates, the Village would still remain below the annual
levy limit. In fact, Scenario 8C would create additional capacity of nearly $200,000 per year
during the affected years.
Chair Sheperd then asked whether anyone disagreed with pursuing two bond issuances. No one
20

expressed disagreement. He then asked whether anyone disagreed with issuing in the fall. Again,
no one objected, though he repeated the earlier caveat about interest rate risk. Even so, he said
issuing in the fall still appeared to be the most appropriate direction to provide to staff.
Mr. Kim said it had been an excellent discussion. Chair Sheperd agreed and added that the
presentation itself had also been excellent.
Chair Sheperd then noted that there would be no formal vote and that Ms. Molloy would prepare
follow-up materials reflecting the Committee’s direction. Ms. Molloy thanked him.
He then indicated that the Committee would move on to the vehicle sticker discussion.
Trustee Kennedy thanked Mr. Kim again and said he had done an excellent job. Ms. Molloy
echoed the compliment and thanked him once more for all of his work.
IV.

DISCUSSION OF VEHICLE STICKER ASSISTANCE PROGRAM – CONTINUATION
FROM NOVEMBER 18
Sara Phyfer presented the update on the vehicle sticker assistance program. She explained that
following the Committee’s discussion the previous month, staff had worked with the Township
to identify a list of common financial assistance programs with income thresholds. The Township
provided the list included in the memo, which showed programs for which the Township would
consider an applicant presumptively eligible.
She noted that these programs typically include either an award letter or a physical benefits card.
For housing-related programs, the Village also already knows which addresses participate.
For the vehicle sticker assistance program, staff recommended a similar approach in which
residents could present an award letter or benefits card to demonstrate eligibility for a discount.
This would be the most straightforward administrative method and would also protect residents’
sensitive financial information.
Ms. Phyfer said the memo also included preliminary data estimating how many individuals might
benefit from the program. However, she cautioned that the numbers were uncertain because the
Village did not know how much overlap existed among the listed programs. Some residents
might qualify for multiple programs, and staff also did not know how many individuals receiving
those benefits currently purchased vehicle stickers. Ultimately, the full impact of the program
would not be known until after the sticker purchase period.
She also noted that the memo contained information about the utility billing assistance program
referenced at the previous meeting, which had been used during the COVID pandemic.
Ms. Phyfer explained that the key decisions for the evening involved determining the eligibility
thresholds and the type or amount of the discount. Staff hoped to finalize the program parameters
by January to allow sufficient time to implement the program for the upcoming vehicle sticker
cycle. She then turned the discussion back to the Committee.
Chair Sheperd asked whether anyone wanted additional detail on any of the eligibility programs
listed. He commented that he thought the list was excellent and that it appeared to capture as
many eligible residents as possible. He said he felt comfortable with it.
Trustee Kennedy asked whether the Village could highlight the assistance program directly in
the vehicle sticker reminder notice. Since every household already received the sticker notice,
she suggested including the program information there rather than relying on a separate
21

communication.
Ms. Molloy said she wanted to add a caveat. While Ms. Phyfer was correct that the information
could be included, she reminded the Committee that space on the vehicle sticker notice was very
limited. She asked whether the Committee remembered how small the notices were. Staff would
work to include the information, but it might be difficult to fit everything. She suggested that the
notice could also direct residents to a website with the full program details.
Chair Sheperd agreed that directing residents to a website would make sense. Ms. Molloy said
staff could include the most important information on the notice and then refer residents to the
full list online. She assured the Committee that staff would find a way to make it work.
Trustee Kennedy said that during the vaccine program the Village had learned that a surprising
number of residents did not have access to computers. Many residents receiving assistance did
not use computers or did not know how to access the internet, even if they could go to the library.
Some also had cognitive limitations that made it even more difficult. She said she did not have a
clear solution but believed the issue needed to be considered.
Chair Sheperd suggested listing several qualifying programs directly on the notice and then
indicating that additional criteria existed, encouraging residents to ask about eligibility when they
came in to purchase their stickers. He noted that many qualifying residents came to Village Hall
in person, where staff could provide guidance.
Mr. Hallgren agreed and suggested that the Communicator newsletter could also include the
information, since vehicle stickers typically appear on the front page. While some residents might
not read the entire newsletter, the assistance program could be highlighted prominently, along
with a list of qualifying programs. He said the Communicator and the direct-mail sticker notice
would likely be the most effective communication tools because both reach every household.
Trustee Kennedy said she remained concerned about relying on email communication. Mr.
Hallgren said that concern was precisely why the Village continued publishing the
Communicator. Not all residents subscribe to email notifications or have email access, but the
Communicator ensures that information reaches every household three times per year. After that,
the direct-mail sticker notice becomes the next major point of contact.
Ms. Phyfer added that staff could also coordinate with the Township to ensure that information
about the program was shared with Township clients who were already enrolled in these incomequalified programs. Trustee Kennedy said that would be excellent.
Chair Sheperd suggested that the Village could also distribute flyers or notices at the addresses
associated with qualifying housing units.
Trustee Steen then asked whether the Village collected addresses when issuing vehicle stickers.
Ms. Molloy confirmed that it did.
Trustee Steen asked whether the system could flag addresses associated with known qualifying
programs so staff would know the resident might be eligible for the assistance program. He
acknowledged that this would not apply to every program listed, but for those with known
addresses, he wondered whether the data could be connected.
Ms. Molloy said this was exactly the type of internal discussion staff had already begun. Because
the Village already knows the addresses associated with one of the eligibility categories, staff
had started exploring how those indicators might be incorporated into the process. As the
Committee finalized program details, staff was already thinking ahead about how to
22

operationalize the program. She noted that Ms. Phyfer had previously researched whether each
program provided a card or letter specifically so the process could be as simple as possible for
residents, allowing them to say, “I qualify for this discount, and here is my proof.”
Chair Sheperd observed that the Committee appeared to be settled on the eligibility list, and the
Committee agreed. He said the next question was the discount percentage. The current sticker
fee was $80, and he asked how many stickers the Village issued each year.
Ms. Molloy said she would round the number to about 18,000. Ms. Phyfer added that in 2025 the
Village had issued 19,193 stickers.
Chair Sheperd noted that if ten percent of those residents received a discount, that would
represent a very large number. Trustee Kennedy said it would not be anywhere near ten percent.
Chair Sheperd agreed.
Trustee Kennedy explained that many households have multiple vehicles, so the more
meaningful measure is households rather than total cars. The Village has approximately 9,000
households, and lower-income households likely have only one vehicle. As a result, the number
of qualifying stickers would likely be far lower than 9,000.
Trustee Steen restarted the calculation by noting that the Village had roughly 19,133 stickers at
$80 each. That meant total revenue of about $1,530,000.
Trustee Steen said having the total helped him estimate the potential cost. Ten percent of the total
would be about $153,000. Since no one believed the program would reach ten percent of sticker
purchasers, he suggested cutting that estimate in half to about $75,000 and then cutting it in half
again to roughly $37,000. Based on that logic, he estimated the cost of the program would likely
fall somewhere between $30,000 and $50,000.
Chair Sheperd asked whether that estimate assumed a zero-dollar discount or half of the $80 fee.
Trustee Steen clarified that his calculation assumed a full $80 discount for qualifying households.
He also assumed that approximately three to five percent of sticker purchasers might qualify.
Trustee Kennedy reiterated that the 19,000 stickers represented multiple vehicles within the same
households, since many households have two, three, or even four cars. Looking at sticker totals
rather than households therefore gave a misleading impression. Trustee Steen acknowledged that
point.
Chair Sheperd calculated that if the Village had about 9,000 households, five percent would equal
roughly 450 households. Offering the full $80 discount to those households would cost about
$36,000. He said he would feel comfortable with that amount.
Trustee Steen agreed, saying he expected the cost would fall somewhere between $30,000 and
$50,000. Trustee Kennedy added that many residents who receive financial assistance do not
own vehicles. Mr. Hallgren confirmed that observation.
Trustee Steen said the cost could even be as low as $10,000 and that he would not be surprised
if it came in well below $30,000. He said he was completely comfortable offering the full $80
discount.
Trustee Kennedy said she was comfortable with that approach as well, and Chair Sheperd agreed.
Chair Sheperd added that the Committee wanted the discount program to represent a meaningful
amount of assistance, but not something on the scale of half a million dollars. Based on the
discussion, he believed the Village would be comfortable with the program and could adjust it
23

the following year if necessary.
Mr. Hallgren said staff would prepare an ordinance for introduction at the January meeting and
that the ordinance would be updated to include the vehicle sticker discount program. Melinda
Molloy agreed.
Mr. Hallgren explained that the ordinance would be introduced in January with a
recommendation from the Finance Committee to use the listed assistance programs as the
eligibility metric and to offer a fully discounted sticker to eligible households.
Trustee Kennedy said she did not want the Village to create its own eligibility standards or require
residents to submit financial documents directly to the Village. The approach staff recommended,
relying on existing assistance programs, was the correct one. Chair Sheperd and Trustee Steen
also agreed.
Chair Sheperd then asked whether the discount would apply to a single sticker per household. He
then noted that the cycle begins in March. Trustee Steen confirmed that this meant the program
would be in place for the upcoming cycle. Ms. Molloy explained that this was why staff needed
a decision in January, because many implementation steps had to occur beforehand.
Mr. Hallgren added that the timing of the Communicator newsletter aligns with vehicle stickers,
the July 3 event, and leaf collection, and that those deadlines serve as key planning markers for
staff.
V.

NEW BUSINESS
There was no new business.

VI.

PUBLIC COMMENT1
There was no public comment.

VII. ADJOURNMENT
At 8:43 P.M., Trustee Sheperd moved to adjourn the meeting. Trustee Steen seconded the
motion. No further discussion occurred on the motion. Voting yes: Trustees Sheperd, Steen and
Kennedy. Voting no: none. The motion carried.

Respectfully Submitted,
Olga Golubeva
Assistant Finance Director

24

Date:

June 23, 2026

To:

Village Board Finance Committee

From:

Melinda Molloy, Finance Director

Subject:

Review of 2025 Annual Comprehensive Financial Report and Management
Letter

Recommendation
Recommend the presentation of the 2025 Annual Comprehensive Financial Report and
Management Letter to the full Village Board at the June 23, 2026 meeting.
Background
Each year, the Village undergoes an audit of its financial statements and records by an
independent audit firm as required by state statue. The purpose of the audit is to obtain
an opinion that the Village’s financial statements are prepared in conformity with
Generally Accepted Accounting Principles (GAAP). Where the budget is the document
that plans and authorizes the spending of money, the financial statements present what
was received and expensed during the year, and the status of assets and liabilities at the
end of the fiscal year.
In addition to the preparation of the basic financial statements, the Village prepares an
Annual Comprehensive Financial Report (ACFR). The ACFR includes supplementary
information as required by the Government Accounting Standards Board (GASB). The
ACFR has three sections:
•

The Introductory Section - includes the transmittal letter, the Village’s
organizational chart, a list of principal officials, and the Certificate of Achievement
for Excellence in Financial Reporting.

•

The Financial Section - prepared in accordance with GAAP and includes
Management’s Discussion and Analysis (MD&A), the basic financial statements,
including the notes and the Required Supplementary Information. The
Independent Auditors’ Report on the basic financial statements is also included in
this section as is Other Supplementary Information that is not required by GASB
but is presented for the purpose of additional analysis.

•

The Statistical Section - includes select unaudited financial, economic and
demographic data depicting historical information about the Village, along with
other information that would be of interest to potential bond investors, creditors
and other readers.

The Village was not required to have a “Single Audit” performed for FY2025. All nonFederal entities that expend $1,000,000 or more of Federal awards in a year are required
to obtain an annual audit in accordance with the Single Audit Act of 1984, as amended in
1996 (the Act). Federal funds related to the Coronavirus State and Local Fiscal Recovery
Funds (SLFRF) awards, however, are exempt from the calculation for the Single Audit
threshold. The SLFRF awards were a component of the American Rescue Plan Act of
2021 (ARPA). The Village did obligate and expend SLFRF funds in FY2025. The
expenditure of these funds required a program-specific review instead of doing a full
scope Single Audit.
Discussion
Staff is pleased to report that Lauterbach & Amen, LLP has issued an unmodified “clean”
audit opinion for the Village audit for the year ended December 31, 2025. The clean audit
opinion is accompanied by the required Communication Report to the Board which
provides audit background and includes the Management Letter.
A member of Lauterbach & Amen, LLP will attend the meeting to discuss the audit and
answer questions.
Documents Attached
1. Annual Comprehensive Financial Report for the year ended December 31, 2025.
2. The Auditor’s Management Letter resulting from the audit process along with staff’s
response.
3. SAS 114 Letter.
4. Village of Wilmette FYE2025 Annual Comprehensive Financial Report
Presentation

VILLAGE OF WILMETTE, ILLINOIS
ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2025
1200 Wilmette Avenue
Wilmette, Illinois 60091
Phone: 847.853.7646
Fax: 847.853.7701
www.wilmette.com

VILLAGE OF WILMETTE, ILLINOIS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025

Prepared by Department of Finance
Melinda Molloy, Finance Director/Village Treasurer
Olga Golubeva, Assistant Village Manager

VILLAGE OF WILMETTE, ILLINOIS
TABLE OF CONTENTS

PAGE
INTRODUCTORY SECTION
Principal Officials
Organization Chart
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting

1
2
3
10

FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT

13

MANAGEMENT’S DISCUSSION AND ANALYSIS

17

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position
Statement of Activities
Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of Total Governmental Fund Balance to the
Statement of Net Position - Governmental Activities
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities - Governmental Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
Notes to the Financial Statements

36
38
40
42
44
46
48
50
52
54
55
56

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions - Last Ten Fiscal Years
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters’ Pension Fund

108
109
110

VILLAGE OF WILMETTE, ILLINOIS
TABLE OF CONTENTS

PAGE
FINANCIAL SECTION - Continued
REQUIRED SUPPLEMENTARY INFORMATION - Continued
Schedule of Changes in the Employer’s Net Pension Liability/(Asset) - Last Ten Measurement Years
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters’ Pension Fund
Schedule of Investment Returns - Last Ten Fiscal Years
Police Pension Fund
Firefighters’ Pension Fund
Schedule of Changes in the Employer’s Total OPEB Liability
Retiree Benefit Plan
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund

111
113
115
117
118
119
121

OTHER SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules
Schedule of Revenues - Budget and Actual - General Fund
Schedule of Detailed Expenditures - Budget and Actual - General Fund
Schedules of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Debt Service Fund
Capital Projects Fund
Nonmajor Governmental - Special Revenue Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Schedules of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual
Motor Fuel Tax - Special Revenue Fund
Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual
Water - Enterprise Fund
Schedule of Operating Expenses - Budget and Actual
Water - Enterprise Fund
Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual
Sewer - Enterprise Fund
Schedule of Operating Expenses - Budget and Actual
Sewer - Enterprise Fund

126
129
142
143
144
145
146
147
148
152
153

VILLAGE OF WILMETTE, ILLINOIS
TABLE OF CONTENTS

PAGE
FINANCIAL SECTION - Continued
OTHER SUPPLEMENTARY INFORMATION - Continued
Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual
Parking Meter - Nonmajor Enterprise Fund
Schedule of Operating Revenues - Budget and Actual
Parking Meter - Nonmajor Enterprise Fund
Schedule of Operating Expenses - Budget and Actual
Parking Meter - Nonmajor Enterprise Fund
Combining Statement of Net Position - Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
Internal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
Municipal Garage - Internal Service Fund
Employee Insurance - Internal Service Fund
Workers' Compensation - Internal Service Fund
Illinois Municipal Retirement - Internal Service Fund
Section 105 Sick Leave - Internal Service Fund
Combining Statement of Fiduciary Net Position - Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds
Schedule of Changes in Fiduciary Net Position - Budget and Actual
Police Pension - Pension Trust Fund
Firefighters' Pension - Pension Trust Fund

155
156
157
159
161
163
165
166
167
168
169
170
171
172
173

SUPPLEMENTAL SCHEDULES
Long-Term Debt Requirements
General Obligation Bonds of 2017A
General Obligation Bonds of 2020A
General Obligation Refunding Bonds of 2020B
General Obligation Bonds of 2021
General Obligation Bonds of 2022A
General Obligation Refunding Bonds of 2022B
IEPA Revenue Bonds of 2006
IEPA Revenue Bonds of 2007
IEPA Revenue Bonds of 2010
IEPA Revenue Bonds of 2011
IEPA Revenue Bonds of 2012
IEPA Revenue Bonds of 2013

175
176
177
178
179
180
181
182
183
184
185
186

VILLAGE OF WILMETTE, ILLINOIS
TABLE OF CONTENTS
PAGE
FINANCIAL SECTION - Continued
SUPPLEMENTAL SCHEDULES - Continued
Long-Term Debt Requirements - Continued
IEPA Revenue Bonds of 2014
IEPA Revenue Bonds of 2016
IEPA Revenue Bonds of 2017
IEPA Revenue Bonds of 2018
IEPA Revenue Bonds of 2019
IEPA Revenue Bonds of 2022
Installment Contract of 2012

187
188
189
190
191
192
193

STATISTICAL SECTION (Unaudited)
Net Position by Component - Last Ten Fiscal Years
Changes in Net Position - Last Ten Fiscal Years
Fund Balances of Governmental Funds - Last Ten Fiscal Years
Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years
Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years
Cook County
Direct and Overlapping Property Tax Rates Last Ten Tax Levy Years
Principal Property Tax Payers - Current Fiscal Year and Nine Fiscal Years Ago
Property Tax Levies and Collections - Last Ten Fiscal Years
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
Ratio of General Obligation Bonded Debt to Equalized Assessed Valuation and
Net General Obligation Bonded Debt- Last Ten Fiscal Years
Schedule of Direct and Overlapping Bonded Debt
Legal Debt Margin
Pledged Revenue Coverage - Last Ten Fiscal Years
Demographic and Economic Statistics - Last Ten Fiscal Years
Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago
Full-Time Equivalent Village Government Employees by Function - Last Ten Fiscal Years
Operating Indicators by Function/Program - Last Ten Fiscal Years
Capital Asset Statistics by Function/Program - Last Ten Fiscal Years
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENTAL AUDITING STANDARDS

196
198
200
202
204
206
208
209
210
211
212
213
214
215
216
217
218
220

223

INTRODUCTORY SECTION
This section includes miscellaneous data regarding the Village including: Letter of Transmittal, Principal
Officials, Organizational Chart, and Certificate of Achievement for Excellence in Financial Reporting.

VILLAGE OF WILMETTE, ILLINOIS
Principal Officials
December 31, 2025

LEGISLATIVE
VILLAGE BOARD OF TRUSTEES
Senta Plunkett - President

Gina Kennedy - Trustee

Mark Steen - Trustee

Justin Sheperd - Trustee

Gerry Smith - Trustee

Stephen Leonard - Trustee

Michael Lieber - Trustee

ADMINISTRATIVE
Michael Braiman - Village Manager
Erik Hallgren - Assistant Village Manager
Jeff Stein - Assistant Village Manager/Corporation Counsel

FINANCE DEPARTMENT
Melinda Molloy - Finance Director/Village Treasurer
Olga Golubeva - Assistant Finance Director

1

2

1200 Wilmette Avenue.
WILMETTE, ILLINOIS 60091-0040
(847) 251-2700
Fax (847) 853-7642
TDD (847) 853-7634

June 15, 2026
The Honorable Village President
Members of the Board of Trustees and Village Manager
and Citizens of the Village of Wilmette, Illinois
The Annual Comprehensive Financial Report for the Village of Wilmette, Illinois, (Village) for the year ended
December 31, 2025, is hereby submitted as mandated by both local ordinances and State statutes. These
ordinances and statutes require that the Village issue an annual report on its financial position and activity
presented in conformance with generally accepted accounting principles (GAAP), and that an independent firm of
certified public accountants audit this report in accordance with generally accepted auditing standards. Although
formally addressed to the elected officials and citizens of Wilmette, this financial report has numerous other users.
Foremost among these other users are the bondholders of the Village, financial institutions, credit rating agencies,
educational institutions, and other governmental entities.
The report consists of management’s representations concerning the finances of the Village. Responsibility for
both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures,
rests with the Village. The Village believes the information, as presented, is accurate in all material respects; that
it is presented in a manner designed to fairly set forth the financial position of the Village and the results of its
operations as measured by the financial activity of its various funds; and that all disclosures necessary to enable
the reader to gain the maximum understanding of the Village’s financial affairs have been included. The auditor
concluded that there was a reasonable basis for rendering an unmodified opinion that the Village’s financial
statements for the fiscal year ended December 31, 2025, are fairly presented in conformity with GAAP.
The financial report is presented in three sections: introductory, financial and statistical. The introductory section
includes this transmittal letter, the Village's organizational chart and a list of principal officials. The financial
section includes the Management’s Discussion and Analysis, the auditor’s report, the basic financial statements
and the combined and individual fund financial statements and schedules. The statistical section includes selected
financial and demographic information, generally presented on a multi-year basis.
The Reporting Entity and its Services
The Village of Wilmette, incorporated in 1872, is located approximately 19 miles from downtown Chicago in
New Trier Township. It is one of eight Chicago suburban communities north of Chicago fronting on Lake
Michigan and collectively referred to as the "North Shore." The Village operates under the council/manager form
of government with a legislative body consisting of the Village President and Board of six Trustees, all elected on
an at-large basis to overlapping four-year terms. The Village Manager is responsible for the day-to-day operation
of the Village. The Village occupies a land area of 5.1 square miles and has a population of 28,170 per the 2020
census. The Village is a home rule municipality as defined by the Illinois constitution. Demographic information
can be found in the statistical section of this report.

3

The Village provides a full range of governmental services, which include:
Police Protection
Fire Protection
Emergency Medical Services
Water Production and Distribution
Sewer Service
Street and Parkway Maintenance
Street Lighting
Refuse Disposal and Recycling
Forestry
Commuter and Retail Parking
Planning, Building, and Zoning
Economic Development
Historical Museum
Cable TV Productions
Stormwater Management
The reporting entity of the Village of Wilmette is comprised of all funds of the primary government (i.e. the
Village of Wilmette as legally defined) and its pension trust funds: the Wilmette Police Pension Fund and
Wilmette Firefighters’ Pension Fund. These funds were determined to be pension trust funds due to their fiduciary
and fiscal relationships with the Village as their sole purpose is to provide retirement benefits to the Village’s
sworn police officers and firefighters. There are no legally separate entities that qualify as component units of the
Village.
Accounting System and Budgetary Control
The accounts of the Village are organized on the basis of funds, and the operations of each fund are accounted for
with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and
expenditures. Revenues are allocated to and accounted for in individual funds based upon the purpose for which
they are to be expended and the means by which spending activities are controlled. The accounting records for
general governmental operations are maintained on the modified accrual basis, with revenues being recorded
when available and measurable, and expenditures being recorded when materials or services are received and the
liability incurred. Accounting records for the Village’s enterprise funds, internal service funds, agency funds, and
pension trust funds are maintained on the accrual basis of accounting.
Management of the Village is responsible for establishing and maintaining a system of internal accounting
controls. This system should ensure that: (1) the assets of the Village are protected from loss, theft, or misuse; and
(2) adequate accounting data are compiled to allow for the preparation of financial statements in conformity with
generally accepted accounting principles. Internal control is designed to provide reasonable, but not absolute,
assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a
control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires
estimates and judgments by management.
Additionally, there are budgetary controls in place to ensure compliance with legal provisions embodied in the
annual budget ordinance approved by the Village Board of Trustees. The legal level of budgetary control, the
level at which management cannot overspend the budget without the approval of the governing body, is at the
individual fund level. The Village also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control.
Factors Affecting Financial Condition
Economic Outlook: The Village has long been known as one of the most prestigious residential areas in
Chicagoland. Per the U.S. Census Bureau, the median household income for the Village was $190,662. This
compares to approximately $83,498 for Cook County and $83,390 for the State of Illinois. Wilmette ranks as the
wealthiest community in the State of Illinois among communities with populations over 25,000. Unemployment
rates have typically been below both the State and national averages. The average annual rate for the Village in
2025 was 3.2%, which is below the State’s average annual unemployment rate of 4.6% and below the national
average unemployment rate of 4.4%.
The local economy has sensitivity associated with the housing market. During the national economic downturn
that started in 2009, the tax base for the Village shrank over 30% through 2016. The trend reversed in 2017, and
real estate transfer tax receipts have rebounded strongly due to pent up demand caused by the pandemic and
families relocating from Chicago to the suburbs. However, due to increased inflation, the Federal Reserve steadily
4

increased the federal funds rate, which drove up the cost of borrowing and reduced the volume of real estate
transactions. More recently the federal funds rate has decreased slightly, and this increased real estate activity,
with a total of 465 transactions in 2025, a 15% increase over 2024; and more noteworthy, the average home price
has continued to increase to an average of $1.18 million. Correlated to the housing market, the Village has also
seen an increase in home remodeling and associated permit activity, which has seen gains of nearly 36% over the
past four years.
Sales tax performance has exceeded expectations in recent years, with receipts up 38% in 2025 compared to 2021.
Sales tax performance has been aided in large part by an Illinois State law which became effective January 1,
2021, that ensures that 2% of the sales tax of most internet purchases shipped to a Wilmette address are remitted
back to the Village. In addition to the new law, the Village’s economic development efforts have continued the
downtown restaurant renaissance and generated interest in the Village’s business districts. As part of the Village’s
economic development efforts, staff works closely with our governmental partners and the Chamber of
Commerce to put on exciting community events including a downtown concert series, sidewalk sales, art festivals,
French markets, cultural and holiday events, and THE Wilmette Block Party, a one-day event filled with music,
food, and performances.
Business Outlook: While primarily a residential community, the Village has an established business base made
up of eight business areas, underscored by the downtown area known as Village Center, Plaza del Lago, and
Edens Plaza. In 2024, the Village adopted an updated Comprehensive Plan, which is a roadmap for policy and
land use, helping to guide the growth and development of the community. The adoption was the culmination of a
massive undertaking that began in 2021 to set the Village’s vision and values moving into the future. In 2025, the
Village began the successor planning processes of the Village’s Housing Plan and Historic Preservation Plan to
build on specific elements of the Comprehensive Plan; these are expected to be completed in 2026.
Village Center
In 2011, two properties were purchased by the Village to foster redevelopment in the Village Center district. A
Master Plan of the Village Center was completed which articulated the goal to re-sell these properties for
development. In 2015, the Village finalized the sale of 611 Green Bay Road to M&R Development, which
constructed a five-story luxury apartment development, with retail and amenity spaces on the first floor. The
second property the Village purchased was demolished in 2017 and will continue to serve as public parking until
the future redevelopment of the property. In addition to these investments, the Village completed the Central
Avenue Reconstruction Project in 2021, which updated and enhanced the downtown area to create vibrant
community gathering spaces, showcases the Village’s local businesses, and offer enhanced outdoor dining areas.
The Village Center remains a vibrant and desirable location for new retail and restaurant businesses.
In late 2023, a mixed-use building, Optima Verdana, at the corner of Green Bay Road and Central Avenue, was
constructed. The development consists of just over 100 rental dwelling units and approximately 6,000 square feet
of ground floor retail and restaurant space.
In 2024, Optima Development proposed a second mixed-use building, Optima Lumina, at 721-739 Green Bay
Road, the former site of Imperial Motors, which was approved by the Village Board. This development includes
the construction of commercial space, an estimated 128 dwelling units, public parking amenities, and
contributions towards the Village’s affordable housing initiatives. Demolition and construction are expected to
start in 2026.
Edens Plaza
Edens Plaza, the Village’s largest taxpayer, was entirely redeveloped in 1994-1995. In February 2018, Bon-Ton
Stores, Inc., parent company of Carson’s, the primary anchor store at Edens Plaza, announced it had filed for
bankruptcy protection and ceased operations later that year at both Carson’s Department Store and Carson’s
Furniture Gallery at the Plaza. Edens Plaza was then acquired by Newport Capital Partners, and in 2018, the
Village approved a Special Use for a pediatric care center run by North Shore University Health System and
Advocate Health Care to accompany the other major retailers including Bed, Bath & Beyond, The Fresh Market
grocery store and Walgreen’s Pharmacy. In the first quarter of 2022, Edens Plaza was acquired by WS
Development, which has revitalized the retail center with a flagship Wayfair retail store at its core, filling the
vacant 152,000 square foot building in May 2024. While there have been other closures in the center including
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Bed, Bath & Beyond ceasing operations in early 2023 due to financial struggles of the national brand; WS
Development has continued to rejuvenate this cornerstone shopping center with other additions such as
Uncharted, Club Studio, and other dining options.
Plaza del Lago

In 2017, Retail Properties of America, an Oakbrook-based investment firm, acquired the Plaza del Lago shopping
center. Plaza del Lago was then acquired by WS Development in 2022, who have restored the center with a mix
of high-end local, national, and international retailers by investing millions of dollars to restore and beautify Plaza
del Lago while respecting its unique architecture including structural upgrades, restoring architectural facades,
complementary landscaping, newly designed outdoor gathering spaces, and reimagining the arcade. The
restoration work was completed in 2025 and in addition to 20 signed leases for new retail and restaurant uses;
current tenants including Jewel, CVS, Starbucks, and Convito Café and Market will remain. New businesses
opened in 2025 included Space 519, Rag & Bone, Jenni Kayne, James Perse, LoveShackFancy, Veronica Beard,
and Hill House Home. Additional retailers are anticipated to open in 2026.
Pensions. Rising pension costs have become problematic throughout the nation. The Village is covered by three
defined-benefit pension plans that cover all qualifying employees. These include two locally managed funds: the
Police Pension Fund (covering sworn police officers) and the Firefighters’ Pension Fund (covering sworn
members of the Fire Department); and one statewide fund: the Illinois Municipal Retirement Fund (IMRF), which
covers all other qualified public employees. The benefits of all three of these pension plans are governed by state
law and may only be amended through acts of the Illinois General Assembly. The Village continues to fund future
benefit obligations based on conservative actuarial assumptions and methods designed to meet, if not exceed, state
requirements.
In December of 2019, Governor Pritzker signed into law Public Act (P.A.) 101-0610, which mandates the
consolidation of the assets of the state’s more than 650 downstate and suburban public safety pension funds into
two consolidated investment funds. Each local pension board will continue to manage benefit distribution and
determinations, including pension disability awards. The law creates one investment fund for firefighters, the
Firefighters’ Pension Investment Fund, which controls approximately $11.1 billion in combined assets as of the
end of 2025. The Wilmette Firefighters’ Pension Fund completed its investment transition in January of 2022. The
Act also creates one investment fund for police officers, the Police Officers’ Pension Investment Fund, which
controls approximately $14.8 billion in combined assets at the end of 2025. The Wilmette Police Pension Fund
completed its investment transition in June of 2022.
The Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting
for Pension Plans, was implemented in 2015. The statement has had a material impact on the Village’s
Government-wide financial statements. The primary objective of GASB 68 was to improve reporting by state and
local governments for pensions. The statement establishes new standards for measuring and recognizing liabilities
and expenditures, as well as expanding note disclosures and other information about the Village’s pensions. The
combined net position for the two locally managed funds increased by 14.8% to $147.3 million during the year.
Long-Term Financial Planning. The Village’s budget process for all the operating funds includes cash flow
projections that extend beyond the budget under consideration including capital budgets for the “spending down”
of bond proceeds. The Village utilizes a Ten-Year Capital Improvements Program to address major capital and
infrastructure improvements, as well as new and replacement equipment more than $10,000. The financing source
for these items is projected in conjunction with the future expenditure. This information is used to ensure
sufficient cash flow for a project that will be financed in the operating budget or to determine if additional debt
will be necessary for a project that is to be included in the capital budget.
The Village also takes a long-term approach to fees and taxes and has been able to mitigate the impact of its
operations on taxpayers to an extent not seen in decades. In 2025, the Village continued a trend of keeping
property taxes increases below 3.0% over the past several years, with an increase of 2.30%. In 2024, the Village
had a 2.94% increase; in 2023, the Village had a 0.56% property tax decrease, and in 2022 the increase was
2.46%. In 2025, the refuse, recycling, and organics rate decreased by $4.05 per household per quarter and are a
pass-through of monthly collection and disposal costs. There were no changes to water, sewer, or stormwater
rates.
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Reserve Planning. During the 2022 budget process, the Village’s Finance Committee reviewed and made
recommendations on updating the Village’s reserves, which have grown across the Village’s three major
operating funds. Reserves have grown due to revenue overperformance including non-recurring building permits,
non-recurring real estate transfers, Village-owned property sales, and strong economic development. The updated
reserves policy focused on providing clarity on calculating the reserves, streamlining the document, setting target
ranges for the reserve levels, establishing goals including maintaining the Village’s Aaa bond rating, providing a
plan for rebuilding reserves, and defining a process for drawing down reserves. The Village’s Finance Committee
reviewed the policy in 2024, and the Village Board adopted amendments to the policy in 2025 that updated the
process for notification, proposal, and presentation of usage for excess funds, additional clarity on reserve
calculations, and provided more flexibility to draw down reserves.
Major Initiatives
Each year as part of the Capital Improvement Program, the Village evaluates necessary capital investment and
analyzes available funding sources including the issuance of bonds.
Capital Improvements: After the Great Recession, capital spending was reduced for several years. Grants and
the spending down of existing bond proceeds provided nearly all of the capital spending for governmental
activities in 2011 and 2012. Starting in 2013, the Village began to methodically re-invest in its infrastructure. In
2013, there was a $1 million issuance for the reconstruction of eight alleys. There were no new General Fund
bond-financed projects in 2015 or 2016. To address lagging capital investment from the recession era, the Village
Board unanimously voted to increase the Home Rule Sales Tax from 0.25% to 1.00%, effective January 1, 2015,
to provide a reliable, recurring revenue source dedicated to capital improvements. Most new revenues were
earmarked for critical Village infrastructure programs, and critical police, fire and public works vehicles and
equipment.
Police Station: Space needs were conducted in the early 2000’s for a new station, however that project was
delayed because of the Great Recession. In 2017, as part of long-term financial planning efforts, the Village
identified an opportunity to mitigate the financial impact of a new station on property taxes by deferring
construction until 2026 and 2027 when existing debt service for prior capital improvements was paid. In 2023 the
Village restarted the process of evaluating the construction of a new Police Station to replace the current 21,000
square foot building, which was constructed in 1968. In Spring of 2023, the Village hired an architect to conduct a
needs assessment and land use study as a first step in the process; these findings were presented in February of
2024, and multiple public engagement meetings were held to discuss program spaces. In November of 2024, two
contracts were awarded for schematic design services. In Spring 2025, two contract amendments were approved
for owner's representative services and design development, construction document development, and
procurement services. Throughout 2025, the Village Board, committees, and commissions met to discuss the
building’s design, sustainability options, and projection financing. It is anticipated that construction contracts will
be awarded in early 2026. The current station is projected to be 53,000 square feet and has an estimated cost of
$41.5 million. Due to the Village’s long-term financial planning, the station can be constructed without raising
property taxes for debt service.
Street Resurfacing Program: During 2016 the Village Board re-evaluated its infrastructure investment strategy
and committed to steadily improving the condition of the Village’s roadways in a fiscally responsible manner.
During 2019, the Village Board studied the condition and funding of the Village’s roadway system and committed
to consistent funding levels for the Village’s roadways, with the intent of allocating additional funds in 2026 after
debt service was retired. In 2023, the Village Board re-evaluated the funding scenarios for the Village’s road
program and modified the approach to fund the program based upon targeted pavement area compared to a set
dollar allocation; additionally, the Village Board would allocate funds to meet a 4% pavement area rehabilitation
starting in 2026. This modified approach allowed the Village to reallocate funds to the Village’s alley network,
which is projected to see a decrease in overall condition over the next 10 years without additional investment.
In 2025, the Village rehabilitated 2.49 miles of streets throughout the community. Additional funds were allocated
for maintenance programs such as alley reconstruction, alley repair, brick street renovation, sidewalk and curb
repairs, pavement patching and crack sealing. These improvements are funded from shared motor fuel tax,
dedicated operating revenues in the General Fund (property tax, vehicle license revenues, home rule sales tax, a
local fuel tax, hotel tax (starting in 2023) and a pavement degradation fee), as well as grants. Staff conducted a
7

pavement condition analysis in late 2025 that showed the condition of Village roads continued to improve. By the
end of 2025, the overall pavement condition had improved from 57 to 70 since 2019. Additionally, the percentage
of roads that were rated “Serious” had decreased from 11% to 3%, with the goal of eliminating all roads in
“Serious” condition by 2027. This significant accomplishment has demonstrated the value of investing in our
infrastructure. Additionally, the Village began funding Phase I engineering studies for Lake Ave., Hibbard Rd.,
and Green Bay Rd., which will allow the Village to access federal transportation grant funds for these future
improvements.
In 2025, the Village allocated $1.2 million for the reconstruction of 6 alley segments. The Village maintains 231
alley segments, which had an estimated condition rating of 6.9 or good. The rating, based upon a four-alley per
year reconstruction cycle, is estimated to decline to 6.7 by 2032. A six-alley per year reconstruction cycle is
estimated to increase the rating to 7.4 over the same period. To mitigate the future degradation of alley segments,
the Village updated the long-term investment strategy in 2025 to replace a minimum of 6 alleys on an annual
basis through 2034.
Equipment and Facility Replacements and Upgrades: In 2017, nearly $5 million in long deferred facility
repairs were initiated, including reconstruction of the public works yard, roof replacement at Village Hall, and
generator replacement at various Village facilities. Several equipment and vehicle purchases were made in 2025
including: streetlight equipment including poles and control cabinets, hybrid police squad cars and a fire staff
vehicle, a small dump truck, two large dump trucks, a backhoe, a hot asphalt paver, and water main surge
suppressors. Additionally, the Village began several facility upgrades including masonry restoration at the
museum and Village Hall and security enhancements at several sites.
Sewer Improvements: In July of 2013, the Village Board determined to embark on an aggressive $24 million
sewer improvement program. Over $8.4 million worth of work was completed in 2014 and an additional $13
million by the end of 2015. The program was completed in 2016 and is fully operational. The improvements were
funded by bond issues, the first of which occurred in October 2013 and the second in November of 2014. In 2013,
the Village Board approved an Ordinance increasing the sewer rate by forty cents in 2014 and by an additional
forty cents in 2015 to pay the debt service associated with this program. In 2018 and 2019, the Village continued
consideration of improvements to the Village’s storm water system west of Ridge Road and elected to move
forward with the Neighborhood Storage Improvement Project to reduce the frequency and duration of street
flooding. Phase 1A construction of new storm sewers in the right-of-way began in Fall 2019 and was completed
in 2020. Phase 1 construction was initiated in 2020 for an underground reservoir at Community Playfield with
storm sewer work being completed in 2021. In 2021, the Village began Phase 2 with the construction of
underground reservoirs and storm sewer work at Hibbard Park. In 2022, the Village began and substantially
completed Phase 3, the construction of underground reservoirs and storm sewer work at Thornwood Park. This
project was the largest capital investment in the Village’s history. The project cost was $61.5 million and took 10
years to complete from the initial studies to substantial completion in 2022. The project was initially funded by
debt service, which will be repaid over 30 years through a Stormwater Utility Fee, which was approved by the
Village Board effective January 1, 2020.
Water Improvements: In 2014, the Villages of Wilmette and Glenview agreed to extend the wholesale water
contract for 30 years (from 2020 to 2050). As part of the extension, Glenview began purchasing Wilmette water in
2020 to supply North Maine Utilities. This addition began in June 2020 and increased Wilmette’s wholesale
delivery by approximately 20% over the same timeframe in 2019, without requiring any improvements to the
Wilmette Water Plant or distribution system. Based upon 2021 through 2025 performance, North Maine provides
annual additional net wholesale revenue of approximately $1.54 million. In 2016, the Village added two new
wholesale water customers: the Village of Golf, which is supplied through Glenview, and the Village of
Kenilworth. In 2017, the Village initiated a multi-year electrical improvement project at the Water Plant to ensure
the safe and reliable delivery of drinking water. The $8.8 million project, funded through Illinois Environmental
Protection Agency low interest loans, was completed in 2020 and included two new back-up generators to ensure
redundancy in the event of a power failure.
The Village’s water system has an estimated $171 million in capital infrastructure needs over the next 10 years.
This includes $89 million for the water distribution system and $69 million for the Water Plant. For the water
distribution system, there are two major ongoing projects funded through water rates including water main
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replacements and lead service line replacement. The Village maintains over 107 miles of water main with the
majority between 60 and 90 years old and as they age performance deteriorates causing water main breaks,
hydraulic capacity is lost, and there is a risk of reduced water quality. As part of future capital planning, the
Village seeks to replace 1% of its water mains annually, which has a projected cost of nearly $48 million over the
next 10 years. Additionally, the U.S. EPA has finalized a rule which requires the replacement of all lead service
lines by 2037; this has a projected cost of $41 million over the next 10 years. For the Water Plant investment of
$69 million, there are three primary projects which will require debt issuances or IEPA loan issuances over the
next 10 years. In 2025, staff started the design study for several of these projects including treatment process
improvements including those for Perfluoroalkyls (PFAS) or “forever chemicals,” replacement of a water intake
pipe in Lake Michigan, and transmission main repairs. In 2026, the Village Board will review the water
infrastructure needs, and the Village will begin a water rate study to determine a long-term funding strategy to
meet the Village’s Water Fund needs.
Independent Audit
Illinois Municipal Auditing Law requires an annual audit of the Village by independently certified public
accountants selected by the Village Board of Trustees. This audit requirement has been complied with, and the
Board selected the accounting firm of Lauterbach and Amen, LLP. The auditors’ report on the basic financial
statements, the combining and individual fund schedules as well as the information listed as supplemental is
included in the financial section of this report.
Awards
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the Village for its annual comprehensive financial report for the year ended December 31,
2024. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government financial reports.
To be awarded a Certificate of Achievement, the Village published an easily readable and efficiently organized
annual comprehensive financial report. The report satisfied both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that
our current annual comprehensive financial report continues to meet the Certificate of Achievement Program's
requirements and are submitting it to the GFOA to determine its eligibility for another certificate.
The Village was awarded the Distinguished Budget Presentation Award by the GFOA for its fiscal 2026 budget
document. To receive the Distinguished Budget Presentation Award, the document must meet specific criteria
such as an operations guide, a policy document, a financial plan, and a communications device. This award is
valid for a one-year period and it is one the Village has been achieving most years since 1999.
Acknowledgments
The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated
services of the entire staff of the Finance Department. I would also like to thank the President and Trustees of the
Village Board and Village Manager, Michael Braiman, for their support in planning and conducting the financial
operations of the Village in a responsible and progressive manner. Finally, I would like to express my
appreciation to the firm Lauterbach and Amen, LLP, for their professionalism and expertise in their assistance in
the preparation of this report.
Respectfully submitted,

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10

FINANCIAL SECTION
This section includes:
• Independent Auditor's Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
• Other Supplementary Information
• Supplemental Schedules

11

INDEPENDENT AUDITOR'S REPORT
This section includes the opinion of the Village’s independent auditing firm.

12

INDEPENDENT AUDITOR'S REPORT
June 15, 2026
The Honorable Village President
Members of the Board of Trustees and Village Manager
Village of Wilmette, Illinois
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Village of Wilmette (the
Village), Illinois, as of and for the year ended December 31, 2025, and the related notes to the financial
statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the Village of Wilmette, Illinois, as of December 31, 2025, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit 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. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Village, and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern
for twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.

13

Village of Wilmette, Illinois
June 15, 2026
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with generally accepted auditing standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 Village’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we
identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedules, and supplementary pension and other postemployment benefit (OPEB) schedules, as listed in the table of contents, be presented to supplement the basic
financial statements. Such information is the responsibility of management and, 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.

14

Village of Wilmette, Illinois
June 15, 2026
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Wilmette, Illinois’ basic financial statements. The other supplementary information and
supplemental schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
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, other supplementary information and supplemental schedules are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and our
auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we
do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are required
to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 15, 2026, on our
consideration of the Village’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Village’s internal control over financial reporting and
compliance.

LAUTERBACH & AMEN, LLP

15

MANAGEMENT'S DISCUSSION AND ANALYSIS

16

VILLAGE OF WILMETTE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2025
___________________________________________________________________________________________
This section of the Village of Wilmette (the Village), Illinois' Annual Comprehensive Financial Report (ACFR)
presents Management’s Discussion and Analysis (MD&A) of the Village’s financial activities during the fiscal
year ended December 31, 2025. It is designed to (1) assist the reader in focusing on significant financial issues,
(2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position
(its ability to address the subsequent years’ challenges), (4) identify any material deviations from the financial
plan (the approved budget), and (5) identify individual fund issues or concerns.
Since the MD&A is designed to focus on the current year’s activities, resulting changes, and currently known
facts, please read it in conjunction with the Transmittal Letter and the Village’s financial statements. All amounts,
unless otherwise indicated, are expressed in thousands of dollars.
FINANCIAL HIGHLIGHTS
•

The Village’s total net position was $116,916 thousand, an increase of $9,844 thousand (9.2%) from the
prior fiscal year. The governmental net position increased by $6,813 thousand (25.2%). The business-type
net position increased by $3,031 thousand (3.8%).

•

Village-wide revenues were $77,278 thousand, of which $57,286 thousand were generated by
governmental activities and $19,993 thousand were generated by business-type activities.

•

Village-wide expenses were $67,434 thousand, of which $51,522 thousand were incurred by
governmental activities and $15,912 thousand were incurred by business-type activities.

•

Governmental Fund balances decreased $491 thousand to $32,809 thousand. Of this amount $22,113
thousand (67.4%) was unassigned fund balance available for spending at the Village’s discretion.

•

Governmental Fund revenues were $56,205 thousand, an increase of $1,460 thousand from fiscal year
2024. Governmental Fund expenditures were $58,389 thousand, an increase of $3,815 thousand from
fiscal year 2024.

•

Enterprise Fund net position increased $3,031 thousand to $83,109 thousand. Of this amount $14,089
thousand (17.0%) was unrestricted net position available for spending at the Village’s discretion.

•

Enterprise Fund operating revenues were $18,569 thousand, an increase of $1,163 thousand from the
prior fiscal year. Enterprise Fund operating expenses were $12,964 thousand, an increase of $1,277
thousand from the prior fiscal year.
OVERVIEW OF THE ANNUAL REPORT

The MD&A is intended to serve as an introduction to the Village’s basic financial statements. The Village’s basic
financial statements are comprised of three components: 1) the government-wide financial statements, 2) the fund
financial statements, and 3) the notes to the financial statements. The Village is not accountable for any outside
organizations and therefore, no adjustments were made to blend financial information from other legally separate
entities into this report. This report also contains other supplementary information in addition to the basic
financial statements themselves.

17

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to emulate the private sector in that all governmental
and business-type activities are consolidated into columns that total the Village as a whole. Such a presentation
allows for a broad overview of the Village’s finances. The Governmental Activities reflect the Village’s basic
services, including public safety (police and fire), streets and sanitation, other public works, public health,
community development and general government. Property taxes, shared State sales taxes, home-rule sales taxes,
local utility taxes, shared State income taxes, and local real estate transfer taxes finance the majority of these
activities. The Business-Type Activities reflect private sector-type operations (Water Fund, Sewer Fund and
Parking Meter Fund), where the fee for service typically covers all or most of the cost of operation, including
depreciation. Fiduciary activities, such as employee pension plans, are not available to fund Village programs and
therefore are not included in the government-wide statements.
The Village’s annual report includes two government-wide financial statements. These statements provide longterm information about the Village’s overall financial status. Financial reporting at this level uses accounting
similar to full accrual accounting used in the private sector. Inter-fund activity is eliminated and the cost of assets
with long service life is spread out over future years so that capital expenditures are amortized (through
depreciation) when benefits are realized.
Historically, a government’s largest group of assets (infrastructure - roads, bridges, storm sewers, etc.) have
neither been reported nor depreciated in the governmental financial statements. GASB Statement No. 34 requires
that these assets be valued and reported within the Governmental column of the Government-Wide Statements.
Additionally, the government must elect to either (1) depreciate these assets over their estimated useful life or (2)
develop a system of asset management designed to maintain the service delivery potential to near perpetuity. If
the government develops the asset management system (the modified approach) which periodically (at least every
third year), by category, measures and demonstrates its maintenance of locally-established levels of service
standards, the government may record its cost of maintenance in lieu of depreciation. The Village has chosen to
depreciate assets over their useful life. If a road project is considered a recurring cost that does not extend the
road’s original life or expand its capacity, the cost of the project will be expensed. An “overlay” of a road will be
considered maintenance whereas a “rebuild” of a road will be capitalized.
The first government-wide statement is the Statement of Net Position. This statement presents information about
all of the Village’s assets/deferred outflows and liabilities/deferred inflows, with the difference reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of whether or not the
financial position of the Village is improving or deteriorating. Additionally, one would need to evaluate nonfinancial factors, such as the condition of the Village’s infrastructure, the satisfaction of the residents and other
information beyond the scope of this report to make a more complete assessment of the overall health of the
Village.
The second government-wide statement is the Statement of Activities. This statement presents information about
all of the Village’s revenues and expenses, also on the full accrual basis, with the emphasis on measuring net
revenue or expense of each of the Village’s activities. This is intended to summarize and simplify the user’s
analysis of the cost of various government services and/or subsidy to various business-type activities. All changes
in net position are reported as soon as the underlying event giving rise to the change occurs, regardless to 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 but unused vacation leave).
The Statement of Activities explains in detail the change in net position for the year.

18

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Fund Financial Statements
The fund financial statements report the Village’s operations in more detail than the government-wide statement
and focus primarily on the short-term activities of the Village’s General Fund and other major funds. The fund
financial statements measure only current revenues and expenditures, current assets, liabilities and fund balances;
they exclude capital assets, long-term debt and other long-term amounts. 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
fund financial statements allows the demonstration of sources and uses and/or budgeting compliance associated
therewith. Traditional users of governmental financial statements will find the fund financial statements
presentation more familiar. All of the funds of the Village can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental Funds. The governmental funds presentation is presented on a sources and uses of liquid resources
basis. This is the manner in which the financial plan (the budget) is typically developed. The flow and availability
of liquid resources is a clear and appropriate focus of any analysis of a government. The focus of governmental
funds is narrower than that of the government-wide financial statements. Both the Governmental Fund Balance
Sheet and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balance provide a
reconciliation to facilitate the comparison between governmental funds and governmental activities. The
governmental funds total column requires a reconciliation because of the different measurement focus (current
financial resources versus total economic resources) which is reflected. The flow of current financial resources
reflects bond proceeds and interfund transfers as other financing sources as well as capital expenditures and bond
principal payments as expenditures. The reconciliation eliminates these transactions and incorporates the capital
assets and long-term obligations (bond and others) into the governmental activities’ column (in the governmentwide statements).
The Village maintains five individual governmental funds. Information is presented separately in the
Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures, and
Changes in Fund Balances for the General Fund, the Debt Service Fund and Capital Projects Fund, which are
considered to be major funds. The financial data from nonmajor funds are combined into a single aggregated
presentation. The Village’s Motor Fuel Tax Fund and Fire Insurance Tax Fund are the nonmajor governmental
funds.
Proprietary Funds. The Village maintains two different types of proprietary funds. Enterprise Funds are used to
report the same functions presented in business-type activities in the government-wide financial statements.
Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the
Village’s various functions. The Village uses internal service funds to account for vehicle repair and maintenance
and to account for employee fringe benefit expenses (e.g. employer expense for health insurance and pension plan
contributions). As Internal Service Funds serve governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary Fund Financial Statements provide the same type of information as the Government-Wide Financial
Statements, only in more detail. The Water and Sewer Funds are considered to be major funds of the Village and
are presented in separate columns in the Fund Financial Statements. Currently, the Parking Meter Fund is the only
nonmajor enterprise fund. The Internal Service Funds are combined in a single, aggregate presentation in the
Proprietary Fund Financial Statements. Individual fund data for non-major enterprise and internal service funds
are presented elsewhere in this report.
Fiduciary Funds. Fiduciary Funds are used to account for resources held for the benefit of parties outside of the
government. Fiduciary funds are not reflected in the government-wide financial statements because these assets
are restricted in purpose and do not represent discretionary assets of the government. The Village’s fiduciary
funds are pension trusts for the Police Pension Fund and the Firefighters Pension fund.

19

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
Government-Wide and Fund Financial Statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information including budgetary basis schedules (with reconciliations to GAAP basis information)
and the Village’s progress in funding its obligation to provide pension and retirement benefits to its employees.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position
Net position may serve over time as a useful indicator of a government’s financial position. As shown in Table 1,
the Village's total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of
resources by $116,916 thousand as of December 31, 2025. Overall net position increased by $9,844 thousand, or
9.2%, from $107,072 thousand in fiscal year 2024.
The largest portion of the Village’s net position, $132,958 thousand, is its investment in capital assets (e.g. land,
construction in progress, buildings, improvements other than buildings, water system improvements, sewer
system improvements, storm water pump stations, motor equipment, office furniture and equipment, other
equipment, machinery, equipment, and vehicles, parking facilities/improvements), less any related debt
outstanding that was used to acquire those assets. The Village uses these capital assets to provide services to
citizens and thus these assets are not available for future spending. Although the Village’s investment in its capital
assets is shown net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The restricted portion of the Village’s net position, $7,820 thousand, represents resources held for specific
purposes. The two largest components consist of seized and forfeited assets resulting from Police Department
activities and restricted Illinois Municipal Retirement Fund (IMRF) assets. Additional restricted balances are held
in the Motor Fuel Tax Fund for roadway improvements, and the Fire Insurance Tax Fund.
The unrestricted portion of the Village’s net position may be used to meet the Village’s ongoing obligations to
citizens and creditors. Due primarily to the implementation of GASB Statement No. 68, which requires the
recognition of net pension liabilities and related deferred items, and GASB Statement No. 75, which requires the
recognition of total OPEB liabilities and related deferred items, the Village reported an unrestricted net position
deficit of $23,862 thousand.
The following table reflects the condensed Statement of Net Position. For more detailed information see the
Statement of Net Position.

20

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Table 1: Statement of Net Position (in thousands)
Governmental
Activities
2025
2024

Business-Type
Activities
2025
2024

Total Primary
Government
2025
2024

71,608
73,028
144,636

64,747
68,006
132,753

20,305
168,944
189,249

21,047
166,600
187,647

91,913
241,972
333,885

85,794
234,606
320,400

Deferred Outflows
Total Assets/Deferred Outflows

6,414
151,050

11,799
144,551

211
189,461

256
187,904

6,626
340,511

12,055
332,455

Liabilities
Other Liabilities
Long-Term Liabilities
Total Liabilities

14,653
61,349
76,002

12,310
78,520
90,830

5,739
100,524
106,264

4,261
102,914
107,175

20,392
161,874
182,266

16,570
181,434
198,004

Deferred Inflows
Total Liabilities/Deferred Inflows

41,241
117,243

26,728
117,558

88
106,351

651
107,825

41,329
223,595

27,379
225,383

Net Position
Net Investment in Capital Assets
Restricted
Unrestricted (Deficit)
Total Net Position

63,938
7,820
(37,951)
33,807

55,007
4,334
(32,348)
26,993

69,020
—
14,089
83,109

66,303
—
13,776
80,078

132,958
7,820
(23,862)
116,916

121,310
4,334
(18,572)
107,072

Assets
Current / Other Assets
Capital Assets
Total Assets

$

21

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Governmental activities were the primary contributor to the increase in the Village's net position during the year.
Net position of governmental activities increased by $6,813 thousand, or 25.2%, compared to an increase of
$3,031 thousand, or 3.8%, for business-type activities.
The increase in net position of governmental activities was primarily driven by growth in total assets. The most
significant change was an increased of $6,861 thousand in assets, attributable to several factors. One factor was
higher property tax receivable balances resulting from the delayed distribution of the second installment of Cook
County property taxes. The delay increased receivables and reduced cash balances at year-end. Another factor
was the recognition of a net pension asset related to IMRF. Strong investment performance and favorable
actuarial experience resulted in a net pension asset in 2025. While this asset is not available to fund general
Village operations, it is required to be reported in the government-wide financial statements.
Although total liabilities for governmental activities decreased by $14,827 thousand from the prior fiscal year,
primarily due to reductions in net pension liabilities and the scheduled repayment of long-term debt, much of this
change was offset by a $14,447 thousand increase in deferred inflows of resources. The increase in deferred
inflows was primarily attributable to the amortization and recognition of pension related deferred amounts
associated with the Police and Firefighters' Pension Funds and IMRF.
The change in net position of business-type activities was primarily attributable to investments in capital assets. In
addition to routine capital improvements, the Village undertook water main improvement projects and began
implementation of a new automated meter infrastructure (AMI) system. These investments contributed to a
$2,717 thousand increase in capital assets during the year.
Total liabilities for business type activities decreased by $911 thousand from the prior fiscal year, primarily due to
scheduled principal payments on General Obligation Bonds and IEPA loans. While these liabilities decreased by
$2,322 thousand during the year, the reduction was partially offset by higher accounts payable balances resulting
from the timing of payments and project related expenditures at year end. The Village did not issue any new debt
during 2025, further contributing to the overall reduction in outstanding debt obligations.
Statement of Activities
While the Statement of Net Position explains the Village's financial position at year-end, the Statement of
Activities explains how that position changed during the year. The increase in net position discussed above is
reflected in both statements; however, the Statement of Activities focuses on the revenues, expenses, and transfers
that generated those changes. Table 2 provides details of changes in net position for both 2025 and 2024,
separated between governmental activities and business-type activities. Net position of governmental activities
increased by $6,813 thousand during 2025, from $26,993 thousand to $33,807 thousand. Net position of businesstype activities increased by $3,031 thousand, from $80,078 thousand to $83,109 thousand.

22

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Table 2: Statement of Activities (in thousands)
Governmental
Activities
2025
2024

Business-Type
Activities
2025
2024

Total Primary
Government
2025
2024

10,342
3,398

9,863
2,028

18,569
—

17,406
—

28,911
3,398

27,269
2,028

20,601
9,385
5,080
1,697
3,414
3,369
57,286

21,454
8,099
4,784
1,601
3,235
3,926
54,991

—
—
—
—
—
1,424
19,993

—
—
—
—
—
3,029
20,435

20,601
9,385
5,080
1,697
3,414
4,792
77,278

21,454
8,099
4,784
1,601
3,235
6,955
75,426

Expenses
General Government
Public Safety
Streets and Sanitation
Other Public Works
Public Health
Community Development
Interest
Water
Sewer
Parking
Total Expenses

6,798
26,848
8,207
6,691
51
2,764
164
—
—
—
51,522

8,550
27,359
8,055
6,717
50
2,680
322
—
—
—
53,732

—
—
—
—
—
—
—
8,788
6,657
467
15,912

—
—
—
—
—
—
—
8,175
6,145
426
14,747

6,798
26,848
8,207
6,691
51
2,764
164
8,788
6,657
467
67,434

8,550
27,359
8,055
6,717
50
2,680
322
8,175
6,145
426
68,479

Change in Net Position
Before Transfers

5,763

1,259

4,081

5,688

9,844

6,947

Transfers

1,050

1,050

(1,050)

(1,050)

—

—

Change in Net Position
Net Position January 1

6,813
26,993

2,309
24,685

3,031
80,078

4,638
75,440

9,844
107,072

6,947
100,125

Net Position December 31

33,807

26,993

83,109

80,078

116,916

107,072

Revenues
Program Revenues
Charges for Services
Grants / Contributions
General Revenues
Property Taxes
Sales Taxes
Income Taxes
Utility Taxes
Other Taxes
Other General Revenues
Total Revenues

$

23

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Governmental Activities - Revenues
Total governmental activities revenues amounted to $57,286 thousand for 2025, an increase of $2,295 thousand or
4.2% over 2024.
Program revenues increased by $1,849 thousand from the prior year and consist of charges for services and grants
and contributions. Charges for services increased by $479 thousand, or 4.9%%, primarily due to higher building
permit revenues. Revenues from grants and contributions increase by $1,370 thousand, primarily due to the
receipt of two grants totaling $800 thousand from the Illinois Department of Commerce and Economic
Opportunity for road and alley work, and capital contributions of $932 thousand related to federally funded road
projects administered through the Illinois Department of Transportation. Capital grant revenues fluctuate from
year to year based on the timing and scope of eligible projects completed during the year.
General revenues increased by $446 thousand, or 1.0%, compared to 2024. Property tax revenues decreased by
$853 thousand, or 4.0%%, primarily due to the delayed distribution of the second installment of Cook County
property taxes. Historically the Village receives 99% of the tax levy in the first year of collection; in 2025 the
Village received less than 94%. Revenues from all other general revenue sources increased by $1,299 thousand,
or 5.7%. The largest contributor to this increase was sales tax revenue, including both municipal and home rule
sales taxes. Income tax and utility tax also increased during 2025. Other taxes saw some increase in 2025 due to
increase in real estate transfer tax and hotel tax that was partially offset by lower revenue from personal property
replacement tax and fuel tax. Other revenues declined primarily due to a $625 thousand decrease in investment
earnings.
The following graph illustrates the Village's major governmental revenue sources. The composition of
governmental activity revenues remained relatively consistent with the prior year, highlighting the continued
importance of property taxes as the Village's largest revenue source for funding governmental activities.

2025 Governmental Revenues by Source
Operating Grants, 4.2%
Capital Grants, 1.6%

Other Revenue and Transfers, 7.6%

Sales Tax, 16.1%
Property Taxes, 35.4%
Income Tax, 8.7%
Utility Tax, 2.9%
R. E. Transfer Tax, 2.9%
Charges for Services, 17.7%

All Other, 2.9%

Governmental Activities - Expense
Total governmental activities expenses amounted to $51,522 thousand in 2025, a decrease of $2,210 thousand, or
4.1%, compared to 2024. The overall decrease was primarily attributable to lower General Government and
Public Safety expenses.
General Government expenses decreased $1,753 thousand or 20% from 2024. The decrease was primarily
attributable to pension related actuarial adjustments under GASB Statement No. 68. The actuarial decreases were
partially offset by higher operational costs.
24

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Public Safety expenses decreased $512 thousand or 2% from 2024. The decrease was primarily attributable to
pension related actuarial accounting adjustments of approximately $1,246 thousand resulting from differences
between projected and actual experience for the Police and Firefighters' Pension Funds. In addition, depreciation
expense decreased by $591 thousand from the prior year as certain capital assets became fully depreciated. These
decreases were partially offset by higher vehicle repair and maintenance costs. The Police Department also
incurred new costs of $677 thousand associated with dispatch services outsourced to the Glenview Public Safety
Dispatch Center. In addition, the Fire Department incurred approximately $695 thousand expenditures for
communications equipment related to the transfer of telecommunicator functions, as well as additional costs
associated with the Lexipol project and various training programs.
Streets and Sanitation expenses increased $152 thousand, or 1.9%, from 2024. The increase was primarily
attributable to capital asset-related expense adjustments associated with the Village's vehicle fleet.
Other Public Works expenses decreased $25 thousand or 0.4% from 2024. Deferral of Phase I engineering
studies, road work savings and lack of a parking lot project(as completed in the prior year) were offset by higher
depreciation expense recognized during the year.
Public Health expenses increased $2 thousand or 3.1% from 2024, primarily due to higher health inspection
service costs which the Village outsources.
Community Development expenses increased $84 thousand or 3.1% from 2024. The increase was primarily
driven by higher personnel costs associated with employee turnover, partially offset by a decrease in cost related
to a private property rat control program that started in 2024.
The following graph illustrates Village's governmental expenses by function. The composition of governmental
activity expenses remained generally consistent with 2024, with Public Safety and Streets and Sanitation
continuing to represent the largest functional expenditures supporting services provided to Village residents.

2025 Governmental Expense by Function

Streets and Sanitation, 15.9%
Public Safety, 52.1%

Other Public Works, 13.0%
Public Health, 0.1%
Community Development, 5.4%
General Government, 13.2%

25

Interest, 0.3%

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Governmental Activities - By Program
The next two graphs provide a visual of how governmental revenues and expenses match up for each of the years
2025 and 2024. For governmental activities, program revenues covered approximately 26.7% of expenses in
2025. This is up from 2024 which was approximately 22.1%. Community Development revenues was sufficient to
match the related program expenses. All of the other programs categories are substantially subsidized by general
revenues which is fairly consistent with prior years.
2025 Program Revenues and Expenses Governmental Activities

2024 Program Revenues and Expenses Governmental Activities

Community
Devel.

Community
Devel.

Interest

Interest

Streets & Sanit.

Streets & Sanit.

Other Public
Works

Other Public
Works

Public Safety &
Health

Public Safety &
Health

General Govt.

General Govt.
$—

$10,000

Program Revenues

$20,000

$30,000

$—

Expenses

$10,000

Program Revenues

$20,000

$30,000

Expenses

Business-Type Activities
As noted previously, the business-type activities reflect private sector-type operations, where the fee for service
typically covers all or most of the cost of operation, including depreciation. For the Village that applies to the
Water Fund, and Sewer Fund but not the Parking Meter Fund.
Business-Type Activities - Revenues
Total business-type activities revenues amounted to $19,993 thousand for 2025, a decrease of $442 thousand or
2.2% compared to 2024. Although revenues from water, sewer, stormwater, and parking operations increased
during the year, overall revenues declined due to lower American Rescue Plan Act (ARPA) grant revenue
recognition, as the remaining balance was fully utilized, and lower investment earnings compared to the prior
year.
Program revenues consist primarily of charges for water, sewer, and stormwater services, with a smaller portion
attributable to parking related revenues. Charges for services increased by $1,163 thousand, or 6.7%, from 2024.
The increase was primarily attributable to a 2.4% wholesale water rate increase and $537 thousand of
disbursements related to a class action lawsuit settlement regarding Perfluoroalkyls (PFAS), so called “forever
chemicals”.
The following graph depicts the major business-type revenue sources of the Village. The composition of the
Village’s 2025 business-type activities revenues is similar to 2024.

26

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

2025 Business-Type Revenues
Residential Sewer
Charges, 36.1%

Residential Water Sales, 16.3%

Other Water and
Sewer revenues, 3.4%
Parking fees, 1.9%
All Other NonOperating Revenues,
7.1%

Wholesale Water Sales, 35.2%

Business Type Activities - Expenses
Total business-type activities expenses amounted to $15,912 thousand for 2025, an increase of $1,165 thousand or
7.9% from 2024.
Water Fund expenses increased $613 thousand, or 7.5%, from 2024. The increase was primarily attributable to
higher maintenance costs, including approximately $160 thousand of repairs related to water main breaks, as well
as higher depreciation expense. Sewer Fund expenses increased $511 thousand, or 8.3%, from 2024. The increase
was primarily attributable to higher depreciation expense associated with neighborhood stormwater improvement
project placed into service during the year. Parking Fund expenses increased $40 thousand, or 9.5%, from 2024.
The increase was primarily attributable to higher depreciation expense associated with improvements made to the
Burmeister parking lot. Increased contractual services and bank charges also contributed to the increase in
expenses, reflecting a continued shift in customer payment preferences toward mobile payment options, which
carry higher processing costs than in person paystation payment methods.
Business Type Activities - Programs
The following two graphs illustrate the relationship between business-type revenues and expenses for 2025 and
2024. As expected, program revenues exceeded expenses in both the Water and Sewer Funds. The Parking Fund
is intended to operate at or near a break-even level, with revenues generally sufficient to cover the cost of
operations over time.
2025 Program Revenues and Expenses Business-Type Activities

2024 Program Revenues and Expenses Business-Type Activities

Water

Water

Sewer

Sewer

Parking

Parking
$—

$5,000

Program Revenues

$10,000

$15,000

Expenses

$—

$2,500

$5,000

Program Revenues

27

$7,500

$10,000

Expenses

$12,500

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

FINANCIAL ANALYSIS OF THE VILLAGE’S FUNDS
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the Village’s governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. In particular, unassigned fund balance may serve as a useful measure of a
government’s net resources available for spending at the end of the fiscal year. The Village’s governmental funds
reported combining fund balances of $32,809 thousand, which is $491 thousand, or 1%, lower than last year’s
total of $33,300 thousand. Approximately 67% of the fund balance, $22,113 thousand, is unassigned fund
balance.
General Fund
The General Fund is the primary operating fund of the Village. At year-end, unassigned fund balance was $24,417
thousand, which was 73% of the total fund balance of the fund. As a measure of the General Fund’s liquidity, it is
useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents
approximately 48% of total General Fund expenditures. The total fund balance in the fund increased by $1,731
thousand, or 5%. The increase was mainly a transfer in from the Water Fund of $1,050 thousand and the
recognition of lease proceeds of $586 thousand. The General Fund had excess revenues over expenditures of $38
thousand.
Other Major Funds
The Village’s other major governmental funds include the Debt Service Fund and the Capital Projects Fund. The
Debt Service Fund is used to account for the periodic payment of principal and interest on general long-term debt.
The Debt Service Fund had a $105 thousand decrease in fund balance and ended the year with a deficit balance of
$32 thousand. The deficit fund balance was the result of a timing issue related to a delay in property tax
disbursements from Cook County. Property tax bills which typically have a due date of August 1 were delayed
until December 15. The Capital Projects Fund had a $1,979 thousand decrease in fund balance and ended the year
with a deficit balance of $1,246 thousand. The Capital Projects Fund has accumulated over $2,000 thousand in
design and engineering expenditures related to the eventual construction of a new Police Station. In 2025, the
Village Board of Trustees approved a resolution authorizing the intent to reimburse the expenditures related to the
building of the police station with a future debt
Nonmajor Funds
The Motor Fuel Tax Fund and the Fire Insurance Tax are the nonmajor governmental funds. The Motor Fuel Tax
Fund accounts for roadway capital projects authorized by the Illinois Department of Transportation. Revenue is
provided by the Village’s share of the State gasoline tax. The fund balance at year-end was $448 thousand, which
was a decrease of $87 thousand, or 16% from last year. The decrease in the fund balance was planned as part of
the budget process. The Fire Insurance Tax Fund had an ending fund balance of $415 thousand, which was a
decrease of $50 thousand, or 11% from last year.

28

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Proprietary Funds
The Village’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. The Village reports the Water Fund and the Sewer Fund as major proprietary
funds. These two funds are enterprise funds. The Village has one nonmajor proprietary fund, the Parking Meter
Fund, which is also an enterprise fund.
The Village’s wholesale water rate is set by contract and is recalculated every other year. The residential water
and sewer rates are determined by the Village Board of Trustees. The commuter parking rates are also set by the
Village Trustees in conjunction with the Union Pacific railroad and the Chicago Transit Authority (CTA). If
activity volumes were similar from year to year, the expectation would be that revenue would grow in line with
rate changes.
The rates in effect for 2025 and 2024 were as follows:
2025
Wholesale Water Rate
$
1.432/ccf
Residential Water Rate
2.75/ccf
Residential Sewer Rate
4.40/ccf
Stormwater - Impervious Surface Rate
155.00/ERU
Stormwater - Property Fixed Rate
60.00 per quarter
METRA Commuter Parking Rates
2.60 per day
CTA Commuter Parking Rates
4.00 per day

2024

% Change

1.398/ccf
2.75/ccf
4.40/ccf
155.00/ERU
60.00 per quarter
2.60 per day
4.00 per day

2.4%
—%
—%
—%
—%
—%
—%

The Water Fund reflects all revenue and expense related to supplying water to the residents of Wilmette as well as
to the Villages of Glenview, Kenilworth and Golf and to the Illinois American Water Company, and North Maine
Utilities. The intent of the Fund is that it not only be self-supporting but also achieve a surplus to help support
general operations and services of the Village. The Fund experienced an income gain before transfers of $3,583
thousand. Operating revenues were $2,552 thousand more than operating expenses. Operating revenues were
positively impacted by the 2.4% increase in the wholesale water rate and the receipt of $537 thousand in PFAS
lawsuit settlement funds. Additionally, positive investment earnings of $846 thousand and $553 thousand of
ARPA grant revenues offset by interest expense of $367 thousand resulted in $1,031 thousand increase to income
before transfers. There were transfers in of $2,689 thousand mainly tied to the Village Board of Trustees approved
reallocation of unspent bond proceeds from the Sewer Fund and allocated to the Automatic Meter Reading system
improvement project. The positive performance of the Water Fund allowed for a $1,050 thousand transfer out to
the General Fund.
The Sewer Fund reflects all the revenue and expense related to supplying sewer services to the residents of
Wilmette. The intent of the Fund is that it is self-supporting. The Fund experienced an income gain before
transfers of $579 thousand. Operating revenue and operations expenses performed as expected. There were
transfers out of $2,689 thousand to the Water Fund mainly tied to the Village Board of Trustees approved
reallocation of unspent bond proceeds from the neighborhood stormwater improvement project
The Parking Meter Fund captures all the revenue and expense related to the Village Center lots, the CTA station
lots, and the Burmeister lots. The intent of the Fund is that it is self-supporting. The Fund experienced an income
loss before transfers of 81 thousand. Although operating revenues of $386 thousands performed better than
expected, they have not returned to pre-COVID levels. Operations expenses of $334 thousand performed slightly
better than expected but total operating expenses were negatively impacted by depreciation expense of $132
thousand.

29

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

The Internal Service Funds are combined in a single, aggregate presentation in the Proprietary Fund Financial
Statements and reflect the goods and services provided by an activity to other departments on a costreimbursement basis. The Village has five internal service funds, the Municipal Garage Fund, the Employee
Insurance Fund, the Workers’ Compensation Fund, the Illinois Municipal Retirement Fund, and the Section 105
Fund. The Worker’s Compensation Fund had expenses $4 thousand greater than expected due to deductible
payments. Revenues from insurance reimbursements offset the expenses. The Section 105 Fund operating
revenues and expenses performed as expected. However, the Section 105 Fund had an operating income loss of
$49 thousand which was more than offset by investment earnings of $91 thousand. The other Internal Service
Funds performed as expected.
General Fund Budgetary Highlights
The Village adopts an annual appropriation ordinance for all of its funds. One supplemental appropriation
ordinance was adopted for the 2025 Budget. The supplemental budget ordinance added $239,750 to the General
Fund Budget for additional police staffing. The ordinance allowed for the hiring of three new sworn police
officers and one social worker. The new staff were needed to create the following two teams; a Neighborhood
Engagement Team – two sworn police officers, and a Co-Responder Team – one sworn Community Relations
Officer and one nonsworn Social Worker to assist calls with a mental health component.
Table 3: General Fund Budgetary Highlights

Revenues
$
Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Debt Issuance
Disposal of Capital Assets
Transfers in
Transfers out
Net Changes in Fund Balance

Original
Budget

Final
Budget

Actual
GAAP
Basis

42,647,855
46,776,245

42,647,855
47,015,995

51,145,996
51,107,985

(4,128,390)

(4,368,140)

38,011

—
20,000
1,340,000
(35,000)

—
20,000
1,340,000
(35,000)

586,233
56,548
1,050,000
—

(2,803,390)

(3,043,140)

1,730,792

A guiding principle in constructing the 2025 budget was to further the Village’s commitment to infrastructure
investment while limiting the impact of Village operations on the taxpayers. The Village planned to spend down
reserves as seen in the negative change in Fund Balance in Table 3. The drawdown is part of a multi-year plan to
bring General Fund reserves in line with the Village’s updated budget reserve policy. One of the major reasons for
the variance between the Original Budget and the Actual GAAP basis is the recognition of a portion of the
property tax levy. The General Fund Budget does not include the public safety pension funds’ property tax levy; it
is part of each of the public safety fund budgets. The total property tax levy for public safety pension funds’ is
$6,211 thousand that is reflected in both the revenues and expenditures of the General Fund for GAAP purposes.
Backing out the public safety pension funds’ property tax levy, the actual revenues were $2,287 thousand above
the budget. The Village saw significant performance in the following revenues above budget projections; permit
and fees ($1.324 thousand), and interest earning ($953 thousand). Backing out the public safety pension funds’
property tax levy, actual expenditures were under budget $2,119 thousand. Most of the variance was in Other
30

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Public Works ($2,524 thousand). The variance was tied to budget savings ($528 thousand) from the street and
alley maintenance program, brick street renovations, and the street resurfacing program. Additional budget
savings ($1,737 thousand) were reprogrammed to 2026. This included $254 thousand of Phase 1 road
engineering studies, $501 thousand shared road projects with the Illinois Department of Transportation and $982
thousand in grant funded projects for Skokie Shared Use Path and Skokie Valley trail. Because of the positive
revenue performance, the Village Board reduced the planned transfer from the Water Fund to the General Fund
from $1,340 thousand to $1,050 thousand.
CAPITAL ASSETS
The Village’s capital assets for its Government and Business-Type Activities at December 31, 2025 total
$241,972 thousand. This includes land, landscaping, construction in progress, buildings, improvements other than
buildings, motor equipment, office furniture and equipment, other equipment, lease assets - equipment, water
system improvement, sewer system improvements, storm water pump stations, machinery, equipment and
vehicles, and parking facilities/improvements. This amount represents an increase of $7,366 thousand (reflecting
additions, disposals and depreciation). Detailed information regarding the change in capital assets for Government
and Business-Type Activities is included in the Note 3 to the Financial Statements.
The Governmental Activities net investment in capital assets increased from last year by $8,931 thousand. The net
capital assets increased $5,022 thousand which included depreciation of $5,628 thousand. Additionally, there was
$3,238 thousand of debt repayment and a net decrease in unamortized bond premiums of $400 thousand and an
increase in unexpended bond proceeds of $847 thousand due to interest earnings.
Business-Type Activities net investment in capital assets increased by $2,717 thousand. Capital asset balances
increased $2,344 thousand net of $3,981 thousand of depreciation. Additionally, there was a net decrease of
$2,739 thousand in general obligation bonds and IEPA loans.
DEBT OUTSTANDING
The Village has six general obligation (G.O.) bond issues and thirteen EPA loans outstanding. The following table
summarizes the Village’s long-term debt outstanding (excluding unamortized bond discount and loss on refunding
and compensated absences).
Table 4: Bonded and Similar Indebtedness

General Obligation Bonds
IEPA Loans
State Loans
Lease Payable
Subscription Payable
Totals
Governmental Activities
Business-Type Activities
Totals

$

Outstanding at

Issued

Retired

Outstanding at

December 31, 2024

2025

2025

December 31, 2025

101,205
12,060
100
392
—
113,756

—
564
—
295
292
1,150

(5,155)
(809)
(13)
(154)
—
(6,130)

96,050
11,815
87
533
292
108,777

12,402
101,355
113,756

586
564
1,150

(3,391)
(2,739)
(6,130)

9,597
99,180
108,777

The Village secured an Illinois Environmental Protection Agency (IEPA) loan in 2025. Of the total project costs,
$564 thousand represents the portion of expenditures incurred in 2025, with additional project expenditures
31

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

expected in2026. The related debt service payment schedules will be finalized and become available upon
completion of the project in 2026.
Under its home rule authority, the Village is not subject to a statutory legal debt limit. In 2023, the Village’s Aaa
bond rating was reaffirmed by Moody's Investors Service, citing the Village’s strong socioeconomic profile,
healthy financial position and operating flexibility, and moderate debt burden. The Village will continue to pursue
IEPA loans due to their favorable financing terms and will also seek grant opportunities whenever possible.
Additional information of the Village’s long-term debt can be found in the Note 3 to the Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Village of Wilmette remains in a strong financial position, allowing it to continue investing in critical
infrastructure, maintain high-quality municipal services, and limit the impact of taxes and fees on residents. The
Proposed 2026 Budget reflects this balance, combining disciplined financial management with targeted long-term
investments.
The 2026 General Fund and overall financial plan are supported by stable revenues and continued economic
development. Key impacts to residents include a 2.98% property tax levy increase, or approximately $65 annually
for a median-value home. Additional adjustments include a $7.80 annual increase (2.3%) in the solid waste
collection fee and a $50 increase in the stormwater utility fee to support long-term debt obligations related to
flood mitigation infrastructure. No increases are proposed for residential water and sewer rates.
The Village’s financial strength is the result of consistent, long-term planning. Wilmette continues to maintain its
Aaa bond rating, minimizing borrowing costs for major capital projects. The Village has also steadily
strengthened its reserves since a low of $2.6 million in 2009, providing flexibility to fund one-time investments
and reduce reliance on property taxes. In recent years, the Village has also secured significant external funding,
including $1.4 million in grants in 2026, following $4.8 million in 2025, $6.6 million in 2024, and $8.9 million in
2023.
Economic development continues to play a critical role in the Village’s financial outlook. Redevelopment at
Edens Plaza and Plaza del Lago, along with strong performance from key retailers such as Wayfair, is expected to
drive sales tax growth and diversify revenue sources. These revenues reduce reliance on property taxes while
supporting ongoing infrastructure investments and community services.
At the same time, the Village is preparing for significant long-term capital needs. Planned and anticipated
investments include a new police station estimated at $50.5 million, an average annual transportation program of
approximately $10.1 million, and water infrastructure needs totaling an estimated $171 million over the next 10
years.
The new police station, scheduled to break ground in 2026, will replace a facility constructed in 1968. The project
has been strategically timed to align with the retirement of existing debt, allowing the Village to fund construction
through a combination of reserves and new debt without increasing the property tax levy for debt service. This
investment will enhance public safety through improved training facilities, modern evidence processing
capabilities, and upgraded emergency response infrastructure.
Transportation infrastructure remains a core priority. Since 2015, the Village has added nearly $4 million in
dedicated annual funding to the roadway program, significantly improving overall road conditions. Dedicated
revenues, including portions of sales tax, motor fuel tax, and vehicle sticker fees, support this program. However,
rising construction costs and competing capital priorities may require additional funding strategies in future years.
Water infrastructure represents one of the Village’s most significant long-term challenges. Major planned
investments include approximately $41 million for mandated lead service line replacement, $69 million for water
plant improvements, and $48 million for the water distribution system over the next decade. The Village has
identified approximately 2,200 lead service lines, with an estimated replacement cost of $19,000 per line. Funding
these initiatives will require a combination of reserves, debt, and potential future rate adjustments.
32

Village of Wilmette, Illinois
Management's Discussion and Analysis, (Continued)

Public safety pensions continue to be a major cost driver. Annual Village contributions have increased from
approximately $596,800 in 1998 to over $6.2 million in 2025, with pension costs now representing 28% of the
property tax levy and 14% of General Fund expenditures. While the Village has implemented a 15-year
amortization strategy to stabilize contributions, future costs remain sensitive to market performance. The 2026
Budget includes a modest $15,000 increase in the pension-related property tax levy, with additional increases
projected in future years.
Looking ahead, the Village will continue to evaluate funding strategies for major capital investments, including
the use of reserves, debt structuring, and revenue diversification. Key decisions in 2026 will focus on funding the
police station, prioritizing transportation investments, and developing a long-term strategy for water
infrastructure.
Overall, the Proposed 2026 Budget reflects Wilmette’s continued commitment to fiscal responsibility, strategic
investment, and long-term planning. By balancing infrastructure needs with financial sustainability, the Village
remains well-positioned to meet future challenges while maintaining the high level of service residents expect.
CONTACTING THE VILLAGE’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors, and creditors with a general
overview of the Village’s finances and to demonstrate the Village’s accountability for the money it receives.
Questions concerning this report or requests for additional financial information should be directed to Melinda
Molloy, Finance Director, Village of Wilmette, 1200 Wilmette Avenue Wilmette, Illinois 60091.

33

BASIC FINANCIAL STATEMENTS
The basic financial Statements include integrated sets of financial statements as required by the GASB. The sets
of statements include:
Government-Wide Financial Statements
Fund Financial Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
In addition, the notes to the financial statements are included to provide information that is essential to a user’s
understanding of the basic financial statements.

34

VILLAGE OF WILMETTE, ILLINOIS
Statement of Net Position
December 31, 2025

See Following Page

35

VILLAGE OF WILMETTE, ILLINOIS
Statement of Net Position
December 31, 2025

Governmental
Activities

ASSETS
Current Assets
Cash and Investments
Receivables - Net
Due from Other Governments
Internal Balances
Inventories/Prepaids - Land Held for Resale
Deposits
Restricted Cash and Investments
Total Current Assets

$

Business-Type
Activities

Totals

29,652,450
29,611,135
4,249,216
51,063
136,570
2,767,130
1,026,067
67,493,631

14,485,991
3,080,504
—
(51,063)
92,855
—
2,697,119
20,305,406

44,138,441
32,691,639
4,249,216
—
229,425
2,767,130
3,723,186
87,799,037

Noncurrent Assets
Capital Assets
Nondepreciable
Depreciable/Amortizable
Depreciation/Amortization
Total Capital Assets

7,527,848
147,551,376
(82,051,428)
73,027,796

6,268,016
228,122,450
(65,446,477)
168,943,989

13,795,864
375,673,826
(147,497,905)
241,971,785

Other Assets
Land Held for Resale
Net Pension Asset - IMRF
Total Other Assets
Total Noncurrent Assets
Total Assets

630,000
3,484,400
4,114,400
77,142,196
144,635,827

—
—
—
168,943,989
189,249,395

630,000
3,484,400
4,114,400
246,086,185
333,885,222

143,397
301,477
3,682,471
1,411,171
875,678
6,414,194
151,050,021

—
—
—
—
211,311
211,311
189,460,706

143,397
301,477
3,682,471
1,411,171
1,086,989
6,625,505
340,510,727

DEFERRED OUTFLOWS OF RESOURCES
Loss on Refunding
Deferred Items - IMRF
Deferred Items - Police Pension
Deferred Items - Firefighters' Pension
Deferred Items - RBP
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources

The accompanying notes to the financial statements are an integral part of this statement.
36

Governmental
Activities

LIABILITIES
Current Liabilities
Accounts Payable
Accrued Wages and Benefits
Accrued Interest Payable
Deposits Payable
Other Payables
Current Portion of Long-Term Liabilities
Total Current Liabilities

$

Business-Type
Activities

Totals

6,377,479
119,706
30,218
2,757,596
2,078,117
3,289,953
14,653,069

2,541,370
8,932
298,465
—
250
2,890,360
5,739,377

8,918,849
128,638
328,683
2,757,596
2,078,367
6,180,313
20,392,446

Noncurrent Liabilities
Compensated Absences Payable
Net Pension Liability - Police Pension
Net Pension Liability - Firefighters' Pension
Total OPEB Liability - RBP
General Obligation Bonds Payable - Net
IEPA Loans Payable
Installment Contracts Payable
Lease Payable
Subscription Payable
Total Noncurrent Liabilities
Total Liabilities

3,411,552
21,833,369
23,251,092
4,656,787
7,643,220
—
75,000
241,240
237,150
61,349,410
76,002,479

206,000
—
—
1,123,736
88,203,378
10,991,162
—
—
—
100,524,276
106,263,653

3,617,552
21,833,369
23,251,092
5,780,523
95,846,598
10,991,162
75,000
241,240
237,150
161,873,686
182,266,132

DEFERRED INFLOWS OF RESOURCES
Property Taxes
Grants
Deferred Items - Lease
Deferred Items - IMRF
Deferred Items - Police Pension
Deferred Items - Firefighters' Pension
Deferred Items - RBP
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows of Resources

22,339,600
21,564
1,421,093
4,884,488
6,028,483
6,181,777
364,014
41,241,019
117,243,498

—
—
—
—
—
—
87,840
87,840
106,351,493

22,339,600
21,564
1,421,093
4,884,488
6,028,483
6,181,777
451,854
41,328,859
223,594,991

NET POSITION
Net Investment in Capital Assets
Restricted - Police Seizures
Restricted - Highways and Streets
Restricted - Fire Insurance Tax
Restricted - IMRF
Unrestricted (Deficit)

63,937,681
3,472,909
447,700
414,841
3,484,400
(37,951,008)

69,019,956
—
—
—
—
14,089,257

132,957,637
3,472,909
447,700
414,841
3,484,400
(23,861,751)

Total Net Position

33,806,523

83,109,213

116,915,736

The accompanying notes to the financial statements are an integral part of this statement.
37

VILLAGE OF WILMETTE, ILLINOIS
Statement of Activities
For the Fiscal Year Ended December 31, 2025

Program Revenues
Operating
Grants/
Contributions

Capital
Grants/
Contributions

Expenses

Charges
for
Services

6,797,588
26,847,547
8,206,725
6,691,399
51,400
2,763,565
164,179
51,522,403

399,189
3,048,428
3,201,604
169,468
1,700
3,521,657
—
10,342,046

—
39,598
13,776
2,361,451
—
51,003
—
2,465,828

—
—
—
932,340
—
—
—
932,340

Business-Type Activities
Water
Sewer
Parking
Total Business-Type Activities

8,788,438
6,656,616
466,676
15,911,730

10,972,866
7,209,833
386,059
18,568,758

—
—
—
—

—
—
—
—

Total Primary Government

67,434,133

28,910,804

2,465,828

932,340

Governmental Activities
General Government
Public Safety
Streets and Sanitation
Other Public Works
Public Health
Community Development
Interest on Long-Term Debt
Total Governmental Activities

$

General Revenues
Taxes
Property Taxes
Home Rule Sales Taxes
Utility Taxes
Real Estate Transfer
Other Taxes
Intergovernmental - Unrestricted
State Income Taxes
Sales Taxes
Personal Property Replacement Tax
ARPA Grant
Investment Earning
Miscellaneous
Transfers - Internal Balances
Change in Net Position
Net Position - Beginning
Net Position - Ending
The accompanying notes to the financial statements are an integral part of this statement.
38

Governmental
Activities

Net (Expenses)/Revenues
Business-Type
Activities

Totals

(6,398,399)
(23,759,521)
(4,991,345)
(3,228,140)
(49,700)
809,095
(164,179)
(37,782,189)

—
—
—
—
—
—
—
—

(6,398,399)
(23,759,521)
(4,991,345)
(3,228,140)
(49,700)
809,095
(164,179)
(37,782,189)

—
—
—
—

2,184,428
553,217
(80,617)
2,657,028

2,184,428
553,217
(80,617)
2,657,028

(37,782,189)

2,657,028

(35,125,161)

20,600,727
3,809,082
1,697,242
1,702,983
1,338,944

—
—
—
—
—

20,600,727
3,809,082
1,697,242
1,702,983
1,338,944

5,080,300
5,575,609
371,886
—
2,138,375
1,230,190
1,050,000
44,595,338

—
—
—
552,837
870,971
—
(1,050,000)
373,808

5,080,300
5,575,609
371,886
552,837
3,009,346
1,230,190
—
44,969,146

6,813,149

3,030,836

9,843,985

26,993,374

80,078,377

107,071,751

33,806,523

83,109,213

116,915,736

The accompanying notes to the financial statements are an integral part of this statement.
39

VILLAGE OF WILMETTE, ILLINOIS
Balance Sheet - Governmental Funds
December 31, 2025

General
ASSETS
Cash and Investments
Restricted Assets - Cash and Investments
Receivables - Net of Allowances
Taxes
Other Taxes
Accrued Interest
Accounts
Leases
Due from Other Governments
Due from Other Funds
Prepaids
Deposits
Land Held for Resale

$ 26,466,607
—

Total Assets

24,365,485
333,345
98,449
927,277
1,477,438
4,135,171
2,767,574
122,616
2,767,130
630,000
64,091,092

LIABILITIES
Accounts Payable
Accrued Wages and Benefits
Deposits Payable
Other Prepayments
Due to Other Funds
Total Liabilities

2,946,996
119,706
2,718,680
234,259
3,043,260
9,062,901

DEFERRED INFLOWS OF RESOURCES
Property Taxes
Grants
Deferred Items - Leases
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows of Resources

20,361,600
21,564
1,421,093
21,804,257
30,867,158

FUND BALANCES
Nonspendable
Restricted
Assigned
Unassigned
Total Fund Balances

2,889,746
3,472,909
2,444,500
24,416,779
33,223,934

Total Liabilities, Deferred Inflows of Resources and Fund Balances

64,091,092

The accompanying notes to the financial statements are an integral part of this statement.
40

Debt
Service

Capital
Projects

Nonmajor

Totals

—
—

—
1,026,067

817,485
—

27,284,092
1,026,067

2,382,178
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—

—
—
—
1,104
—
114,045
—
—
—
—

26,747,663
333,345
98,449
928,381
1,477,438
4,249,216
2,767,574
122,616
2,767,130
630,000

2,382,178

1,026,067

932,634

68,431,971

—
—
—
—
435,792
435,792

—
—
—
—
2,271,866
2,271,866

70,093
—
—
—
—
70,093

3,017,089
119,706
2,718,680
234,259
5,750,918
11,840,652

1,978,000
—
—
1,978,000
2,413,792

—
—
—
—
2,271,866

—
—
—
—
70,093

22,339,600
21,564
1,421,093
23,782,257
35,622,909

—
—
—
(31,614)
(31,614)

—
1,026,067
—
(2,271,866)
(1,245,799)

—
862,541
—
—
862,541

2,889,746
5,361,517
2,444,500
22,113,299
32,809,062

2,382,178

1,026,067

932,634

68,431,971

The accompanying notes to the financial statements are an integral part of this statement.
41

VILLAGE OF WILMETTE, ILLINOIS
Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental
Activities
December 31, 2025

Total Governmental Fund Balances

$

32,809,062

Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in Governmental Activities are not financial
resources and therefore, are not reported in the funds.

73,027,796

A net pension asset is not considered to represent a financial resource and
therefore is not reported in the funds.
Net Pension Asset - IMRF

3,484,400

Deferred outflows (inflows) of resources related to the pensions not reported in the funds.
Deferred Items - IMRF
Deferred Items - Police Pension
Deferred Items - Firefighters' Pension
Deferred Items - RBP

(4,583,011)
(2,346,012)
(4,770,606)
511,664

Internal service funds are used by the Village to charge the costs of
insurance to individual funds. The assets and liabilities of the
internal service fund are included in the governmental activities
in the Statement of Net Position.

199,414

Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds.
Compensated Absences Payable
Net Pension Liability - Police Pension
Net Pension Liability - Firefighters' Pension
Total OPEB Liability - RBP
General Obligation Bonds Payable - Net
Installment Contract Payable
Lease Payable
Subscription Payable
Accrued Interest Payable

(4,264,440)
(21,833,369)
(23,251,092)
(5,030,883)
(9,204,823)
(87,500)
(532,160)
(291,699)
(30,218)

Net Position of Governmental Activities

33,806,523

The accompanying notes to the financial statements are an integral part of this statement.
42

VILLAGE OF WILMETTE, ILLINOIS
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended December 31, 2025

See Following Page

43

VILLAGE OF WILMETTE, ILLINOIS
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended December 31, 2025

General
Revenues
Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Investment Earnings
Miscellaneous
Total Revenues

$ 25,468,993
5,615,035
12,156,569
4,335,913
391,098
1,953,743
1,224,645
51,145,996

Expenditures
General Government
Public Safety
Streets and Sanitation
Other Public Works
Public Health
Community Development
Capital Outlay
Debt Service
Principal Retirement
Interest and Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources
Debt Issuance
Disposal of Capital Assets
Transfers In

5,817,430
26,422,194
7,559,764
7,207,172
51,400
2,763,565
1,105,748
166,383
14,329
51,107,985

38,011

586,233
56,548
1,050,000
1,692,781

Net Change in Fund Balances

1,730,792

Fund Balances - Beginning

31,493,142

Fund Balances - Ending

33,223,934

The accompanying notes to the financial statements are an integral part of this statement.
44

Debt
Service

Capital
Projects

Nonmajor

Totals

3,543,130
—
—
—
—
—
—
3,543,130

—
—
—
—
—
46,390
—
46,390

136,855
—
1,286,051
—
—
47,061
—
1,469,967

29,148,978
5,615,035
13,442,620
4,335,913
391,098
2,047,194
1,224,645
56,205,483

—
—
—
—
—
—
—

—
—
—
—
—
—
2,025,841

—
206,110
—
—
—
—
1,400,762

5,817,430
26,628,304
7,559,764
7,207,172
51,400
2,763,565
4,532,351

3,225,000
423,493
3,648,493

—
—
2,025,841

—
—
1,606,872

3,391,383
437,822
58,389,191

(105,363)

(1,979,451)

(136,905)

(2,183,708)

—
—
—
—

—
—
—
—

—
—
—
—

586,233
56,548
1,050,000
1,692,781

(105,363)

(1,979,451)

(136,905)

(490,927)

73,749

733,652

999,446

33,299,989

(31,614)

(1,245,799)

862,541

32,809,062

The accompanying notes to the financial statements are an integral part of this statement.
45

VILLAGE OF WILMETTE, ILLINOIS
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the
Governmental Funds to the Statement of Activities - Governmental Activities
For the Fiscal Year Ended December 31, 2025

Net Change in Fund Balances - Total Governmental Funds

$

(490,927)

Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures. however, in the
Statement of Activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital Outlays
Depreciation Expense
Capital Contribution
Disposals - Cost
Disposals - Accumulated Depreciation

9,820,770
(5,627,761)
932,340
(1,061,227)
957,693

The net effect of deferred outflows (inflows) of resources related
to the pensions not reported in the funds.
Change in Deferred Items - IMRF
Change in Deferred Items - Police Pension
Change in Deferred Items - Firefighters' Pension
Change in Deferred Items - RBP

(7,137,553)
(4,690,172)
(7,482,782)
(134,712)

Internal service funds are used by the Village to charge the costs of
insurance to individual funds. The net revenue of certain activities
of internal service funds is reported with governmental activities.

41,823

The issuance of long-term debt provides current financial resources to
governmental funds, While the repayment of the principal on long-term
debt consumes the current financial resources of the governmental funds.
Change in Compensated Absences Payable
Change in Net Pension Liability/(Asset) - IMRF
Change in Net Pension Liability - Police Pension
Change in Net Pension Liability - Firefighters' Pension
Change in Total OPEB Liability - RBP
Retirement of Debt
Issuance of Debt
Amortization of Bond Premium
Amortization of Loss on Refunding

(197,699)
6,613,604
4,317,732
7,848,731
24,496
3,391,383
(586,233)
400,259
(143,397)

Changes to accrued interest on long-term debt in the Statement of Activities
does not require the use of current financial resources and, therefore, are not
reported as expenditures in the governmental funds.

16,781

Changes in Net Position of Governmental Activities

The accompanying notes to the financial statements are an integral part of this statement.
46

6,813,149

VILLAGE OF WILMETTE, ILLINOIS
Statement of Net Position - Proprietary Funds
December 31, 2025

See Following Page

47

VILLAGE OF WILMETTE, ILLINOIS
Statement of Net Position - Proprietary Funds
December 31, 2025

Business-Type Activities - Enterprise Funds
Nonmajor
Parking
Water
Sewer
Meter
Totals

Governmental
Activities
Internal
Service

ASSETS
Current Assets
Cash and Investments
Receivables - Net of Allowances

10,516,324

2,967,571

1,002,096

14,485,991

2,368,358

1,325,305
—
3,583
72,393
4,368,852

14,178
—
—
—
1,016,274

3,080,504
85,689
7,166
2,697,119
20,356,469

25,859
—

Restricted Assets - Cash and Investments
Total Current Assets

1,741,021
85,689
3,583
2,624,726
14,971,343

13,954
—
2,408,171

Noncurrent Assets
Capital Assets
Nondepreciable Capital Assets
Depreciable Capital Assets
Accumulated Depreciation
Total Noncurrent Assets
Total Assets

2,549,667
73,866,557
(32,117,428)
44,298,796
59,270,139

3,059,245
149,021,183
(30,035,428)
122,045,000
126,413,852

659,104
5,234,710
(3,293,621)
2,600,193
3,616,467

6,268,016
228,122,450
(65,446,477)
168,943,989
189,300,458

—
—
—
—
2,408,171

162,614

44,132

4,565

211,311

—

59,432,753

126,457,984

3,621,032

189,511,769

2,408,171

Accounts
Inventories
Prepaids

$

DEFERRED OUTFLOWS OF
RESOURCES
Deferred Items - RPB
Total Assets and Deferred Outflows
of Resources

The accompanying notes to the financial statements are an integral part of this statement.
48

Business-Type Activities - Enterprise Funds
Nonmajor
Parking
Water
Sewer
Meter
Totals
LIABILITIES
Current Liabilities
Accounts Payable
Accrued Wages and Benefits
Accrued Interest Payable
Deposits Payable
Other Payables
Retiree Benefits Payable
Due to Other Funds
Compensated Absences Payable
Total OPEB Liability - RBP
General Obligation Bonds Payable
IEPA Loans Payable
Total Current Liabilities
Noncurrent Liabilities
Compensated Absences Payable
Total OPEB Liability - RBP
General Obligation Bonds Payable - Net
IEPA Loans Payable
Total Noncurrent Liabilities
Total Liabilities

$

Governmental
Activities
Internal
Service

1,369,396
7,175
75,022
—
—
—
51,063
31,120
69,469
195,000
411,622
2,209,867

1,142,469
1,749
223,443
—
—
—
—
20,380
18,853
1,730,000
411,966
3,548,860

29,505
8
—
—
250
—
—
—
1,950
—
—
31,713

2,541,370
8,932
298,465
—
250
—
51,063
51,500
90,272
1,925,000
823,588
5,790,440

317,130
—
—
38,916
—
1,843,858
8,853
—
—
—
—
2,208,757

124,480
864,767
6,987,728
6,588,487
14,565,462
16,775,329

81,520
234,690
81,215,650
4,402,675
85,934,535
89,483,395

—
24,279
—
—
24,279
55,992

206,000
1,123,736
88,203,378
10,991,162
100,524,276
106,314,716

—
—
—
—
—
2,208,757

DEFERRED INFLOWS OF
RESOURCES
Deferred Items - RBP
Total Liabilities and Deferred Inflows
of Resources

67,597

18,345

1,898

87,840

—

16,842,926

89,501,740

57,890

106,402,556

2,208,757

NET POSITION
Net Investment in Capital Assets
Unrestricted

32,065,750
10,524,077

34,354,013
2,602,231

2,600,193
962,949

69,019,956
14,089,257

—
199,414

Total Net Position

42,589,827

36,956,244

3,563,142

83,109,213

199,414

The accompanying notes to the financial statements are an integral part of this statement.
49

VILLAGE OF WILMETTE, ILLINOIS
Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds
For the Fiscal Year Ended December 31, 2025

Business-Type Activities - Enterprise Funds
Nonmajor
Parking
Water
Sewer
Meter
Totals
Operating Revenues
Charges for Services
Interfund Services
Total Operating Revenues

Governmental
Activities
Internal
Service

$ 10,972,866
—
10,972,866

7,209,833
—
7,209,833

386,059
—
386,059

18,568,758
—
18,568,758

—
8,463,155
8,463,155

Operating Expenses
Administration
Operations
Depreciation and Amortization
Total Operating Expenses

1,002,251
5,762,534
1,656,241
8,421,026

—
2,022,018
2,054,332
4,076,350

—
334,305
132,371
466,676

1,002,251
8,118,857
3,842,944
12,964,052

—
8,512,513
—
8,512,513

Operating Income (Loss)

2,551,840

3,133,483

(80,617)

5,604,706

(49,358)

552,837
845,582
(367,412)
1,031,007

—
25,389
(2,580,266)
(2,554,877)

—
—
—
—

552,837
870,971
(2,947,678)
(1,523,870)

—
91,181
—
91,181

Income (Loss) Before Transfers

3,582,847

578,606

(80,617)

4,080,836

41,823

Transfers in
Transfers Out

2,688,968
(1,050,000)
1,638,968

—
(2,688,968)
(2,688,968)

—
—
—

2,688,968
(3,738,968)
(1,050,000)

—
—
—

Change in Net Position

5,221,815

(2,110,362)

(80,617)

3,030,836

41,823

Net Position - Beginning

37,368,012

39,066,606

3,643,759

80,078,377

157,591

Net Position - Ending

42,589,827

36,956,244

3,563,142

83,109,213

199,414

Nonoperating Revenues (Expenses)
ARPA Grant
Investment Earnings
Interest Expense

The accompanying notes to the financial statements are an integral part of this statement.
50

VILLAGE OF WILMETTE, ILLINOIS
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended December 31, 2025

See Following Page

51

VILLAGE OF WILMETTE, ILLINOIS
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended December 31, 2025

Water
Cash Flows from Operating Activities
Receipts from Customers and Users
Payments to Employees
Payments to Suppliers

$

Cash Flows from Noncapital Financing Activities
Transfers In
Transfers Out
Cash Flows from Capital and Related
Financing Activities
Purchase of Capital Assets
Disposal of Capital Assets
Principal Issued on Debt
Amortization of Premium on Debt Issuance
Principal Paid on Debt
Interest Paid on Debt
Cash Flows from Investing Activities
Interest Received

11,332,762
(3,039,320)
(3,283,899)
5,009,543
2,688,968
(1,050,000)
1,638,968

(4,941,794)
—
—
(38,095)
(999,472)
(367,412)
(6,346,773)
845,582

Net Change in Cash and Cash Equivalents

1,147,320

Cash and Cash Equivalents
Beginning

11,993,730

Ending

13,141,050

Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income (Loss)
Adjustments to Reconcile Operating Income to
Net Income to Net Cash
Provided by (Used in) Operating Activities:
Depreciation and Amortization Expense
Other Income
(Increase) Decrease in Current Assets
Increase (Decrease) in Current Liabilities
Net Cash Provided by Operating Activities
Noncash Transfers of Capital Assets

The accompanying notes to the financial statements are an integral part of this statement.
52

2,551,840

1,694,336
552,837
(192,941)
403,471
5,009,543
2,688,968

Business-Type Activities - Enterprise Funds
Nonmajor
Parking
Meter

Totals

6,652,187
(814,446)
(610,385)
5,227,356

383,586
(69,558)
(275,696)
38,332

18,368,535
(3,923,324)
(4,169,980)
10,275,231

8,455,722
(852,301)
(7,538,531)
64,890

—
(2,688,968)
(2,688,968)

—
—
—

2,688,968
(3,738,968)
(1,050,000)

—
—
—

(1,353,836)
—
563,872
(99,667)
(1,739,449)
(2,580,266)
(5,209,346)

(28,951)
—
—
—
—
—
(28,951)

(6,324,581)
—
563,872
(137,762)
(2,738,921)
(2,947,678)
(11,585,070)

—
—
—
—
—
—
—

25,389

—

870,971

91,181

(2,645,569)

9,381

(1,488,868)

156,071

5,685,533

992,715

18,671,978

2,212,287

3,039,964

1,002,096

17,183,110

2,368,358

3,133,483

(80,617)

5,604,706

(49,358)

2,153,999
—
(557,646)
497,520

132,371
—
(2,473)
(10,949)

3,980,706
552,837
(753,060)
890,042

—
—
(7,433)
121,681

5,227,356

38,332

10,275,231

64,890

(2,688,968)

—

(2,688,968)

—

Sewer

Governmental
Activities
Internal
Service

The accompanying notes to the financial statements are an integral part of this statement.
53

VILLAGE OF WILMETTE, ILLINOIS
Statement of Fiduciary Net Position
December 31, 2025

Pension
Trust
ASSETS
Cash and Cash Equivalents

$

823,531

Investments
Illinois Police Officer's Pension Investment Fund
Illinois Firefighters' Pension Investment Fund

70,623,053
72,815,921

Due from Municipality
Total Assets

3,043,260
147,305,765
LIABILITIES

Accounts Payable

6,602
NET POSITION

Net Position Restricted for Pensions

147,299,163

The accompanying notes to the financial statements are an integral part of this statement.
54

VILLAGE OF WILMETTE, ILLINOIS
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended December 31, 2025

Pension
Trust
Additions
Contributions - Employer
Contributions - Plan Members
Total Contributions

$

6,211,000
1,082,207
7,293,207

Investment Income
Interest Earned
Net Change in Fair Value

1,008,106
21,520,275
22,528,381
(180,580)
22,347,801
29,641,008

Less Investment Expenses
Net Investment Income
Total Additions
Deductions
Administration
Benefits and Refunds
Total Deductions

91,224
10,532,840
10,624,064

Change in Fiduciary Net Position

19,016,944

Net Position Restricted for Pensions
Beginning

128,282,219

Ending

147,299,163

The accompanying notes to the financial statements are an integral part of this statement.
55

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Wilmette (the Village), Illinois, was incorporated in 1872. The Village is a municipal corporation
governed by an elected mayor and six-member Board of Trustees. The Village’s major operations include police
and fire protection, highway and street maintenance and reconstruction, building code enforcement, public
improvements, economic development, planning and zoning, water, sewer and parking meter services and general
administrative services.
The government-wide financial statements are prepared in accordance with generally accepted accounting
principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing
GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more
significant of the Village’s accounting policies established in GAAP and used by the Village are described below.
REPORTING ENTITY
Blended component units are, in substance, part of the primary government’s operations, even though they are
legally separate entities. Thus, blended component units are appropriately presented as funds of the primary
government. Each discretely presented component unit is reported in a separate column in the government-wide
financial statements to emphasize that it is both legally and substantively separate from the government.
Management has determined that there are two fiduciary component units that are required to be included in the
financial statements of the Village as pension trust funds and there are no discretely component units to include in
the reporting entity.
Blended Component Units
Police Pension Employees Retirement System
The Village’s sworn police employees participate in the Police Pension Employees Retirement System (PPERS).
PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two
members appointed by the Village President, one elected pension beneficiary and two elected police employees
constitute the pension board. The participants are required to contribute a percentage of salary as established by
state statute and the Village is obligated to fund all remaining PPERS costs based upon actuarial valuations. The
State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial
assumptions used in the determination of contribution levels. Although it is legally separate from the Village, the
PPERS is reported as if it were part of the primary government because its sole purpose is to provide retirement
benefits for the Village’s police employees. The PPERS is reported as a fiduciary fund, and specifically a pension
trust fund, due to the fiduciary responsibility exercised over the PPERS.
Firefighters’ Pension Employees Retirement System
The Village’s sworn firefighters participate in the Firefighters’ Pension Employees Retirement System (FPERS).
FPERS functions for the benefit of those employees and is governed by a five-member pension board, with two
members appointed by the Village President, two elected from active participants of the Fund, and one elected
from the retired members of the Fund. The participants are required to contribute a percentage of salary as
established by state statute and the Village is obligated to fund all remaining FPERS costs based upon actuarial
valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve
the actuarial assumptions used in the determination of contribution levels. Although it is legally separate from the
Village, the FPERS is reported as if it were part of the primary government because its sole purpose is to provide
retirement benefits for the Village’s sworn firefighters. The FPERS is reported as a fiduciary fund, and
specifically a pension trust fund, due to the fiduciary responsibility exercised over the FPERS.

56

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
BASIS OF PRESENTATION
Government-Wide Statements
The Village’s basic financial statements include both government-wide (reporting the Village as a whole) and
fund financial statements (reporting the Village’s major funds). Both the government-wide and fund financial
statements categorize primary activities as either governmental or business-type. The Village’s police and safety,
highway and street maintenance and reconstruction, building code enforcement, public improvements, economic
development, planning and zoning, and general administrative services are classified as governmental activities.
The Village’s waterworks and sewerage and parking activities are classified as business-type activities.
In the government-wide Statement of Net Position, both the governmental and business-type activities columns
are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis,
which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred
inflows and obligations.
The Village’s net position is reported in three parts: net investment in capital assets; restricted; and unrestricted.
The Village first utilizes restricted resources to finance qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of each of the Village’s
functions and business-type activities (general government, public safety, streets and sanitation, other public
works, public health, community development, water, sewer, parking, etc.). The functions are supported by
administration and finance revenues (property, sales and use taxes, certain intergovernmental revenues, fines,
permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related
program revenues, which 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.
The net costs (by function or business-type activity) are normally covered by general revenue (property, sales and
use taxes, certain intergovernmental revenues, permits and charges for services, etc.).
The Village allocates indirect costs to other funds for personnel who perform administrative services for those
funds, along with other indirect costs deemed necessary for their operations, but are paid for through the General
Fund.
This government-wide focus is more on the sustainability of the Village as an entity and the change in the
Village’s net position resulting from the current year’s activities.

57

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
BASIS OF PRESENTATION - Continued
Fund Financial Statements
The financial transactions of the Village are reported in individual funds in the fund financial statements. Each
fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets/deferred
outflows, liabilities/deferred inflows, fund balance/net position, revenues and expenditures/expenses. Funds are
organized into three major categories: governmental, proprietary, and fiduciary. The emphasis in fund financial
statements is on the major funds in either the governmental or business-type activities categories.
GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows, liabilities/
deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise
combined) for the determination of major funds. The Village electively added funds, as major funds, which either
had debt outstanding or specific community focus. The nonmajor funds are combined in a column in the fund
financial statements.
A fund is considered major if it is the primary operating fund of the Village or meets the following criteria:
Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that
individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds
of that category or type; and
Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the
individual governmental or enterprise fund are at least 5 percent of the corresponding total for all
governmental and enterprise funds combined.
The various funds are reported by generic classification within the financial statements. The following fund types
are used by the Village:
Governmental Funds
The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial
position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net
income. The following is a description of the governmental funds of the Village:
General Fund is the general operating fund of the Village. It is used to account for all financial resources except
those required to be accounted for in another fund. The General Fund is a major fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted
to expenditures for specified purposes. The Village maintains two nonmajor special revenue funds, the Motor
Fuel Tax Fund and the Fire Insurance Tax Fund. The Motor Fuel Tax Fund accounts for the funds received from
the State of Illinois Motor Fuel Tax to be used for operating and maintaining local streets and roads. The Fire
Insurance Tax Fund accounts for the foreign fire insurance tax receipts held on behalf of retiring Village
firefighters’ to be applied to their retiree health insurance premiums.

58

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
BASIS OF PRESENTATION - Continued
Fund Financial Statements - Continued
Governmental Funds - Continued
Debt Service Funds are used to account for the accumulation of funds for the periodic payment of principal and
interest on general long-term debt. The Village maintains one major debt service fund, which accounts for the
accumulation of monies for the payment of the following bond issues: $4,695,000 of Series 2017A General
Obligation Bonds, $1,140,000 of Series 2020B General Obligation Refunding Bonds, and $2,850,000 of Series
2021 General Obligation Bonds.
Capital Projects Funds are used to account for resources used for the acquisition of capital facilities. The
Village’s Capital Projects Fund is reported as a major fund.
Proprietary Funds
The focus of proprietary fund measurement is upon determination of operating income, changes in net position,
financial position, and cash flows. The generally accepted accounting principles applicable are those similar to
businesses in the private sector. The following is a description of the proprietary funds of the Village:
Enterprise Funds are required to account for operations for which a fee is charged to external users for goods or
services and the activity is (a) financed with debt that is solely secured by a pledge of the net revenues, (b) has
third party requirements that the cost of providing services, including capital costs, be recovered with fees and
charges, or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The
Village maintains two major proprietary funds, the Water Fund and the Sewer Fund, which accounts for the
provision of water and sewer services to the residents of the Village. All activities necessary to provide such
services are accounted for in this fund, including, but not limited to, administration, operations, maintenance,
financing and related debt service, billing and collections. The Village also maintains one nonmajor enterprise
fund, the Parking Meter Fund, which accounts for all activity necessary for provision of parking in the Village,
including, but not limited to, administration, operations, maintenance, financing and related debt service, billing
and collections.
Internal Service Funds are used to account for the financing of goods or services provided by an activity to other
departments, funds or component units of the Village on a cost-reimbursement basis. The Village maintains five
internal service funds, the Municipal Garage Fund, the Employee Insurance Fund, the Workers’ Compensation
Fund, the Illinois Municipal Retirement Fund, and the Section 105 Sick Leave Fund.

59

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
BASIS OF PRESENTATION - Continued
Fund Financial Statements - Continued
Fiduciary Funds
Fiduciary funds are used to report assets held in a trustee or custodial capacity by the Village for others and
therefore are not available to support Village programs. The reporting focus is on net position and changes in net
position and is reported using accounting principles similar to proprietary funds.
Pension Trust Funds are used to account for assets held in a trustee capacity by the Village for pension benefit
payments. The Police Pension Fund accounts for the accumulation of resources to pay retirement and other related
benefits for sworn members of the Village’s police force. The Firefighters’ Pension Fund accounts for the
accumulation of resources to pay retirement and other related benefits for sworn members of the Village’s Fire
Department.
The Village’s pension trust funds are presented in the fiduciary fund financial statements. Since by definition
these assets are being held for the benefit of a third party (pension participants) and cannot be used to address
activities or obligations of the Village, this fund is not incorporated into the government-wide statements.
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus is a term used to describe “which” transactions are recorded within the various financial
statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus
applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both governmental and
business-type activities are presented using the economic resources measurement focus as defined below.
In the fund financial statements, the “current financial resources” measurement focus or the “economic resources”
measurement focus is used as appropriate.
All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets/
deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating
statements present sources and uses of available spendable financial resources during a given period. These funds
use fund balance as their measure of available spendable financial resources at the end of the period.
All proprietary and pension trust funds utilize an “economic resources” measurement focus. The accounting
objectives of the “economic resources” measurement focus is the determination of operating income, changes in
net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows, liabilities/deferred
inflows (whether current or noncurrent) associated with their activities are reported. Proprietary and pension trust
fund equity is classified as net position.

60

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING - Continued
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and businesstype activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues
are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic
asset used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting
from exchange and exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting.
Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.”
Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within
the current period or within sixty days after year end. The Village recognizes property taxes when they become
both measurable and available in accordance with GASB Codification Section P70. A sixty-day availability
period is used for revenue recognition for all other governmental fund revenues. Expenditures (including capital
outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and
interest which are recognized when due.
In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to
accrual are property taxes, sales and use taxes, franchise taxes, licenses, interest revenue, and charges for services.
All other revenues are not susceptible to accrual because generally they are not measurable until received in cash.
All proprietary funds, pension trust funds utilize the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or
economic asset used.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the Village’s enterprise funds
are charges to customers for sales and services.
The Village also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting
new customers to the system. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.

61

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE OR
NET POSITION
Cash and Investments
Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits,
cash with fiscal agent. For the purpose of the proprietary funds “Statement of Cash Flows,” cash and cash
equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid
investments with an original maturity of three months or less.
Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates
fair value. For investments, the Village categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2
inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
Receivables
In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet
received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging
of accounts receivable. Major receivables balances for governmental activities include property taxes, sales and
use taxes, income taxes, utility taxes and grants. Business-type activities report utility charges as their major
receivables.
Prepaids/Inventories - Land Held for Resale
Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method.
The costs of governmental fund-type prepaids/inventories are recorded as expenditures when consumed rather
than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaids in both the government-wide and fund financial statements. Land held for resale are valued
at the lower of cost or market.
Restricted Assets
Certain proceeds of enterprise fund revenue bonds and capital projects fund general obligation bonds, as well as
certain resources set aside for this repayment, are classified as restricted assets on the financial statements because
their use is limited by applicable bond covenants.
Interfund Receivables, Payables and Activity
Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as
interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services
provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses.
Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related
cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental
or proprietary funds are netted as part of the reconciliation to the government-wide financial statements.

62

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE OR
NET POSITION - Continued
Capital Assets
Capital assets purchased or acquired with an original cost of $10,000, depending on asset class, or more are
reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition value as of the
date received. Additions, improvements and other capital outlays that significantly extend the useful life of an
asset are capitalized/amortized. Other costs incurred for repairs and maintenance are expensed as incurred.
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
General capital assets are long-lived assets of the Village as a whole. Infrastructure such as streets and storm
sewers are capitalized. The valuation basis for general capital assets are historical cost, or where historical cost is
not available, estimated historical cost based on replacement costs. Capital assets in the proprietary funds are
capitalized/amortized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets
are the same as those used for the general capital assets. Donated capital assets are capitalized at acquisition value
on the date donated.
Depreciation/amortization on all assets is computed and recorded using the straight-line method of depreciation/
amortized over the following estimated useful lives:
Buildings
Improvements Other Than Buildings
Water System Improvements
Sewer System Improvements
Storm Water Pump Stations
Infrastructure
Motor Equipment
Office Furniture and Equipment
Other Equipment
Machinery, Equipment and Vehicles
Parking Facilities/Improvements
Lease Assets - Equipment
Subscription Assets

75 Years
20 Years
20 - 100 Years
25 - 75 Years
25 - 50 Years
20 Years
3 - 20 Years
3 - 20 Years
3 - 20 Years
3 - 20 Years
10 - 40 Years
5 - Years
5 - Years

Compensated Absences
The Village accrues accumulated unpaid vacation and associated employee-related costs when earned (or
estimated to be earned) by the employee. No liability is recorded for nonvesting accumulation rights to receive
sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to
be taken as “terminal leave” prior to retirement. Accrued but unused sick leave shall not be paid to the employee
upon separation of employment unless required by law. All vacation pay is accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is reported in the
governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

63

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND FUND BALANCE OR
NET POSITION - Continued
Deferred Outflows/Inflows of Resources
Deferred outflow/inflow of resources represents a consumption/acquisition of net assets that applies to a future
period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue)
until that future time.
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are
deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported
net of the applicable bond premium or discount. Bond issuance costs are reported as expenses at the time of
issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
Net Position
In the government-wide financial statements, equity is classified as net position and displayed in three
components:
Net Investment in Capital Assets - 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.
Restricted - Consists of net position with constraints placed on the use either by (1) external groups such
as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through
constitutional provisions or enabling legislation.
Unrestricted - All other net position balances that do not meet the definition of “restricted” or “net
investment in capital assets.”
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumption 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 expenditures/expenses
during the reporting period. Actual results could differ from those estimates.

64

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
BUDGETARY INFORMATION
All departments of the Village submit requests for appropriation to the Village’s manager so that a budget may be
prepared. The budget is prepared by fund and includes information on the past year, current year estimates, and
requested appropriations for the next fiscal year.
Annual appropriated budgets are adopted for the general, debt service, enterprise, internal service and pension
trust and for the special revenue funds except for the Fire Insurance Tax Fund. All annual appropriations lapse at
fiscal year-end.
The proposed budget is presented to the governing body for review. The governing body holds public hearings
and may add to, subtract from, or change appropriations, but may not change the form of the budget.
The budget may be amended only by the governing body. The legal level of budgetary control, the level at which
management cannot overspend the budget without the approval of the governing body, is at the individual fund
level.
EXCESS OF ACTUAL EXPENDITURES/EXPENSES OVER BUDGET IN AN INDIVIDUAL FUNDS
The following funds had excess of actual expenditures/expenses, exclusive of depreciation, over budget at year
end:
Fund

Excess

General
Motor Fuel Tax
Municipal Garage
Workers' Compensation

$

4,091,990
762
56,820
4,031

The General Fund is over budget due to the recognition of the Public Safety Pension Fund property tax levy
revenue. For budget purposes, the property tax levies for the Police and Fire Pension funds, $6,211,000 in total,
are recognized as revenue in the respective pension funds. For audit purposes, the General Fund, not the pension
funds, is the taxing authority and thus, those levies are recorded as General Fund revenue. From an audit
standpoint, the General Fund expenditures are increased to allow the movement of the tax levy back to each
pension fund. The “Employer Pension Contribution” expenditure in each of the Police and Fire departments are
used to record the expenditure in the General Fund. Those expenditure accounts do not have a budget as the
budget exists in the pension funds. If not for the recognition of the pension tax levy and subsequent movement to
the pension funds, the General Fund is under budget by approximately $1.8 million.
The Motor Fuel Tax Fund (MFT) is over budget due to the Village incurring additional MFT expenses related to
available prior year MFT grant funds. As a result, the additional expenses caused the fund to exceed the current
year’s adopted budget amount.
The Municipal Garage Fund is over budget by approximately $60,000, due primarily to unanticipated repairs
needed to two of the Village’s fire apparatus.

65

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY - Continued
EXCESS OF ACTUAL EXPENDITURES/EXPENSES OVER BUDGET IN AN INDIVIDUAL FUNDS Continued
The Workers’ Compensation Fund was $4,031 over budget and this was offset by $23,406 in unbudgeted
insurance reimbursements.
DEFICIT FUND BALANCES
The following funds had deficit fund balance as of the date of this report:
Fund

Deficit

Debt Service
Capital Projects

$

31,614
1,245,799

Deficits will be eliminated by future revenues or transfers.
NOTE 3 - DETAIL NOTES ON ALL FUNDS
DEPOSITS AND INVESTMENTS
The Village maintains a cash and investment pool that is available for use by all funds except the pension trust
funds. Each fund type's portion of this pool is displayed on the financial statements as "cash and investments." In
addition, investments are separately held by several of the Village's funds. The deposits and investments of the
pension trust funds are held separately from those of other funds.
Permitted Deposits and Investments - Illinois Statutes authorizes the Village to make deposits/invest in
commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations
of States and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated
within the three highest classifications by at least two standard rating services and Illinois Funds.
The Illinois Funds is an investment pool managed by the Illinois Public Treasurer’s Office which allows
governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the
SEC as an investment company. Investments in Illinois Funds are valued at the share price, which is the price for
which the investment could be sold.
Village
Deposits. At year-end, the carrying amount of the Village’s deposits for governmental and business-type totaled
$47,859,129 and the bank balances totaled $48,191,475. At year-end the Village also has $2,498 invested in the
Illinois Funds, which has an average maturity of less than one year and is measured at the net asset value per share
as determined by the pool.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. The Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity
while at the same time matching investment maturities to projected fund liabilities.
66

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
DEPOSITS AND INVESTMENTS - Continued
Village - Continued
Interest Rate Risk - Continued. The Village’s investment policy states the “portfolio shall remain sufficiently
liquid to enable the Village to meet all operating requirements which may be reasonably anticipated.” The
Village’s investment in the Illinois Funds has an average maturity of less than one year.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The Village helps limit its exposure to credit risk by investing in securities issued by agencies of the
United States Government that are implicitly guaranteed by the United States Government. The Village’s
investment policy limits authorized investments to the following:
•
•
•
•

Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are guaranteed by the
full faith and credit of the United States of America.
Interest bearing savings accounts, interest bearing certificates of deposit or interest-bearing time deposits,
or any investment constituting direct obligations of any institution as authorized by the Village Board
Illinois Funds
Illinois Metropolitan Investment Fund

The Village’s investment policy also prescribes to the “prudent person” rule, which states, “Investments shall be
made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering
the probable safety of their capital as well as possible income to be derived. At December 31, 2025, the Village’s
investments in the Illinois Funds are AAAmmf rated by Fitch.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the
Village’s deposits may not be returned to it. At December 31, 2025, the entire amount of the bank balance of the
deposits was covered by federal depository or equivalent insurance. The Village’s investment policy further limits
the custodial credit risk for deposits as follows: The Village requires that its primary depository pledge collateral
for all deposits in excess of $250,000. This collateral is to be held by the Village or by a third party in the
Village’s name and may not be released or modified without Village approval. The value of the collateral shall be
determined by the Village or by the third- party custodian. The necessary amount (ranging from 102% to 115% of
excess FDIC insured deposits) of collateral is determined under the Village’s custodial agreement with its
depository bank.
Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. At December 31, 2025, the Village’s investment in the Illinois Funds is not
subject to custodial credit risk.
Concentration of Credit Risk. This is the risk of loss attributed to the magnitude of the Village’s investment in a
single issuer. The Village’s policy states “the Village shall diversify its investments to avoid incurring
unreasonable risks regarding specific security types and/or individual financial institutions. At year-end, the
Village does not have any investments over 5 percent of the cash and investment portfolio (other than investments
issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment
pools, and other pooled investments).

67

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
DEPOSITS AND INVESTMENTS - Continued
Police Pension Fund
The Illinois Police Officers Pension Investment Fund (IPOPIF) is an investment trust fund responsible for the
consolidation and fiduciary management of the pension assets of Illinois suburban and downstate police pension
funds. IPOPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code, becoming
effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative
costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating
pension funds. Participation in IPOPIF by Illinois suburban and downstate police pension funds is mandatory.
Investments of the Fund are combined in a commingled external investment pool and held by IPOPIF. A schedule
of investment expenses is included in IPOPIF‘s annual comprehensive financial report. For additional information
on IPOPIF’s investments, please refer to their annual comprehensive financial report, which can be obtained from
IFPIF at 456 Fulton Street, Suite 402 Peoria, Illinois 61602 or at www.ipopif.org.
Deposits. The Fund retains all its available cash with one financial institution. Available cash is determined to be
that amount which is required for the current expenditures of the Fund. The excess of available cash is required to
be transferred to IPOPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount
of the Fund’s cash on hand totaled $332,135 and the bank balances totaled $341,985.
Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Fund’s
deposits may not be returned to it. The Fund’s investment policy does not limit custodial credit risk for deposits.
At year-end, the entire carrying amount of the bank balance of deposits is covered by federal depository or
equivalent insurance.
Investments. At year-end the Fund has $70,623,053 invested in IPOPIF. The pooled investments consist of the
investments as noted in the target allocation table available at www.ipopif.org. Investments in IPOPIF are valued
at IPOPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at
year-end. The fund may redeem shares with a seven calendar day notice. IPOPIF may, at its sole discretion and
based on circumstances, process redemption requests with fewer than a seven calendar day notice. Regular
redemptions of the same amount on a particular day of the month may be arranged with IPOPIF.
Investment Policy. IPOPIF’s current investment policy was adopted by the Board of Trustees on December 17,
2021. IPOPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IPOPIF
shall not be subject to any of the limitations applicable to investments of pension fund assets currently held by the
transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 3 of the Illinois Pension Code.
Rate of Return
For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments,
net of pension plan investment expense, was 17.79%. The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.

68

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
DEPOSITS AND INVESTMENTS - Continued
Firefighters’ Pension Fund
The Illinois Firefighters’ Pension Investment Fund (IFPIF) is an investment trust fund responsible for the
consolidation and fiduciary management of the pension assets of Illinois suburban and downstate firefighter
pension funds. IFPIF was created by Public Act 101-0610, and codified within the Illinois Pension Code,
becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant
administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the
participating pension funds. Participation in IFPIF by Illinois suburban and downstate firefighter pension funds is
mandatory. Investments of the Fund are combined in a commingled external investment pool and held by IFPIF.
A schedule of investment expenses is included in IFPIF’s annual comprehensive financial report. For additional
information on IFPIF’s investments, please refer to their annual comprehensive financial report, which can be
obtained from IFPIF at 1919 South Highland Avenue, Building A, Suite 237, Lombard, IL 60148 or at
www.ifpif.org.
Deposits. The Fund retains all its available cash with one financial institution. Available cash is determined to be
that amount which is required for the current expenditures of the Fund. The excess of available cash is required to
be transferred to IFPIF for purposes of the long-term investment for the Fund. At year-end, the carrying amount of
the Fund’s cash on hand totaled $491,396 and the bank balances totaled $958,251.
Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Fund’s
deposits may not be returned to it. The Fund’s investment policy does not limit custodial credit risk for deposits.
At year-end, the entire carrying amount of the bank balance of deposits is covered by federal depository or
equivalent insurance.
Investments. At year-end the Fund has $72,815,921 invested in IFPIF. The pooled investments consist of the
investments as noted in the target allocation table available at www.ifpif.org. Investments in IFPIF are valued at
IFPIF’s share price, which is the price the investment could be sold. There are no unfunded commitments at yearend. The plan may redeem shares by giving notice by 5:00 pm central time on the 1st of each month. Requests
properly submitted on or before the 1st of each month will be processed for redemption by the 14th of the month.
Expedited redemptions may be processed at the sole discretion of IFPIF.
Investment Policy. IFPIF’s current investment policy was adopted by the Board of Trustees on June 17, 2022.
IFPIF is authorized to invest in all investments allowed by Illinois Compiled Statutes (ILCS). The IFPIF shall not
be subject to any of the limitations applicable to investments of pension fund assets currently held by the
transferor pension funds under Sections 1-113.1 through 1-113.12 or Article 4 of the Illinois Pension Code.
Rate of Return
For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments,
net of pension plan investment expense, was 17.72%. The money-weighted rate of return expresses investment
performance, net of investment expense, adjusted for the changing amounts actually invested.

69

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
PROPERTY TAXES
Property taxes for 2025 attach as an enforceable lien on January 1, 2025, on property values assessed as of the
same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy Ordinance).
Tax bills are prepared by the County and are payable in two installments, on or about March 1, 2026, and
September 1, 2026. The County collects such taxes and remits them periodically. Since the 2025 levy is intended
to finance the 2026 fiscal year, the levy has been recorded as receivable and deferred revenue.
During 2025, Cook County experienced delays and inaccuracies in the property tax billing and distribution
process related to the implementation of a new countywide property tax software system. As a result, property tax
revenues were distributed later than historically expected and required reconciliation adjustments. Due to these
delays, the Village accrued 60 days of subsequent year property tax receipts to properly reflect 2025 property tax
revenue.
LEASES RECEIVABLE
The Village is a lessor on the following leases at year end:

Lease

Start Date

End Date

Payments

Interest
Rate

Wilmette Park District - Building Rent
Crown Castle (Ameritech) Cell Tower Lease
AT&T Equipment Cabinet at Village Hall
PrimeCo Tower Lease
AT&T Tower Lease
Sprint Tower and Equipment

10/1/2023
11/25/2023
12/1/2023
4/1/2023
12/1/2023
4/1/2023

10/1/2034
11/25/2031
12/1/2028
4/1/2027
12/1/2028
4/1/2028

$67,998 per Year
$91,295 per Year
$20,235 per Year
$49,004 per Year
$20,241 per Year
$59,805 per Year

3.66%
3.66%
3.66%
3.66%
3.66%
3.66%

During the fiscal year, the Village has recognized $282,786 of lease revenue.
The future minimum lease payments as of year-end are as follows:
Fiscal
Year
2026
2027
2028
2029
2030
2031
2032
2033
2034

$

Principal

Interest

Total
Payments

272,740
240,205
202,453
216,428
231,205
124,482
61,047
63,281
65,597

42,942
32,959
35,300
27,891
19,969
11,507
6,951
4,717
2,401

315,682
273,164
237,753
244,319
251,174
135,989
67,998
67,998
67,998

1,477,438

184,637

1,662,075

70

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
INTERFUND BALANCES
The composition of interfund balances as of the date of this report is as follows:
Receivable Fund

Payable Fund

General
General
General
General
Police Pension
Firefighters' Pension

Internal Service
Debt Service
Capital Projects
Water
General
General

Amount
$

8,853
435,792
2,271,866
51,063
1,398,624
1,644,636
5,810,834

Interfund balances result from the time lag between when transactions are recorded in the accounting system and
payments between funds are made and are advances in anticipation of receipts to cover temporary cash shortages.
INTERFUND TRANSFERS
Interfund transfers for the year consisted of the following:
Transfer In

Transfer Out

General

Water

Water

Sewer

Amount
$

1,050,000 (1)
2,688,968 (2)
3,738,968

Transfers are used to (1) move annual contribution to the General Fund, and (2) transfer of capital assets and reappropriated bond funds.

71

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
CAPITAL ASSETS
Governmental Activities
Governmental capital asset activity for the year was as follows:
Beginning
Balances

Increases

Decreases

Ending
Balances

1,836,454
3,351,875
5,188,329

—
3,949,890
3,949,890

—
1,610,371
1,610,371

1,836,454
5,691,394
7,527,848

23,997,210
98,570,441
11,806,066
1,225,587
3,964,785
634,923
—
140,199,012

67,930
6,707,735
270,032
39,945
741,716
294,534
291,699
8,413,591

—
—
416,523
159,284
485,420
—
—
1,061,227

24,065,140
105,278,176
11,659,575
1,106,248
4,221,081
929,457
291,699
147,551,376

11,691,308
52,824,372
8,602,316
876,281
3,133,113
253,970
—
77,381,360

710,108
3,762,717
746,994
56,350
207,986
131,452
12,154
5,627,761

—
—
416,523
55,750
485,420
—
—
957,693

12,401,416
56,587,089
8,932,787
876,881
2,855,679
385,422
12,154
82,051,428

Total Net Depreciable/Amortizable Capital Assets

62,817,652

2,785,830

103,534

65,499,948

Total Net Capital Assets

68,005,981

6,735,720

1,713,905

73,027,796

Nondepreciable Capital Assets
Land
Construction in Progress

$

Depreciable/Amortizable Capital Assets
Buildings
Improvements Other Than Buildings
Motor Equipment
Office Furniture and Equipment
Other Equipment
Lease Assets - Equipment
Subscription Assets - Software
Less Accumulated Depreciation/Amortization
Buildings
Improvements Other Than Buildings
Motor Equipment
Office Furniture and Equipment
Other Equipment
Lease Assets - Equipment
Subscription Assets - Software

Depreciation expense was charged to governmental activities as follows:
General Government
Streets and Sanitation
Other Public Works
Public Safety - Police
Public Safety - Fire

$

206,813
646,961
3,931,414
441,641
400,932
5,627,761

72

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

N

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
CAPITAL ASSETS - Continued
Business-Type Activities
Business-type capital asset activity for the year was as follows:
Beginning
Balances
Nondepreciable Capital Assets
Land
Landscaping
Construction in Progress

$

Increases

Decreases

Ending
Balances

832,453
60,231
22,634,642
23,527,326

—
—
3,111,647
3,111,647

—
—
20,370,957
20,370,957

832,453
60,231
5,375,332
6,268,016

13,186,646
47,564,690
125,079,773
2,001,674
11,604,045
5,101,731
204,538,559

—
3,100,900
20,194,603
—
259,437
28,951
23,583,891

—
—
—
—
—
—
—

13,186,646
50,665,590
145,274,376
2,001,674
11,863,482
5,130,682
228,122,450

8,510,189
15,606,587
25,199,016
1,440,497
7,622,788
3,086,693
61,465,770

249,531
1,053,383
2,040,213
31,250
477,396
128,934
3,980,707

—
—
—
—
—
—
—

8,759,720
16,659,970
27,239,229
1,471,747
8,100,184
3,215,627
65,446,477

Total Depreciable Capital Assets

143,072,789

19,603,184

—

162,675,973

Total Net Capital Assets

166,600,115

22,714,831

20,370,957

168,943,989

Depreciable Capital Assets
Buildings
Water System Improvements
Sewer System Improvements
Storm Water Pump Stations
Machinery, Equipment, and Vehicles
Parking Facilities/Improvements

Less Accumulated Depreciation
Buildings
Water System Improvements
Sewer System Improvements
Storm Water Pump Stations
Machinery, Equipment, and Vehicles
Parking Facilities/Improvements

Depreciation expense was charged to business-type activities as follows:
Water
Sewer
Parking Meter

$

1,694,336
2,154,000
132,371
3,980,707

73

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS
General Obligation Bonds
The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the Village.
General obligation bonds currently outstanding are as follows:

Issue

Fund Debt
Retired by

$9,795,000 General Obligation
Bonds of 2017A, due in annual
installments of $370,000 to
$1,375,000 plus interest at 2.00%
to 3.00% through December 1,
2036.

Debt Service

$30,025,000 General Obligation
Bonds of 2020A, due in annual
installments of $190,000 to
$3,530,000 plus interest at 2.00%
to 5.00% through December 1,
2050.
$15,700,000 General Obligation
Refunding Bonds of 2020B, due in
annual installments of $1,140,000
to $3,875,000 plus interest at
2.00%
to
5.00%
through
December 1, 2026.
$34,995,000 General Obligation
Bonds of 2021, due in annual
installments of $610,000 to
$2,340,000 plus interest at 2.00%
to 5.00% through December 1,
2051.

Beginning
Balances

$

Issuances

Retirements

Ending
Balances

5,065,000

—

370,000

4,695,000

Sewer

23,480,000

—

590,000

22,890,000

Water

3,620,000

—

95,000

3,525,000

Debt Service

3,815,000

—

2,675,000

1,140,000

Debt Service

3,030,000

—

180,000

2,850,000

Sewer

27,610,000

—

455,000

27,155,000

74

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
General Obligation Bonds - Continued

Issue
$19,295,000 General Obligation
Bonds of 2022A, due in annual
installments
of
$30,000
to
$1,905,000 plus interest at 3.66%
through December 1, 2051.
$15,690,000 General Obligation
Bonds of 2022B, due in annual
installments of $110,000 to
$1,820,000 plus interest at 3.36%
through December 1, 2043.

Fund Debt
Retired by

Sewer

Beginning
Balances

$

Issuances

Retirements

Ending
Balances

15,270,000

—

180,000

15,090,000

Water

3,945,000

—

500,000

3,445,000

Sewer

15,370,000

—

110,000

15,260,000

101,205,000

—

5,155,000

96,050,000

IEPA Revenue Bonds
The Village has entered into an agreement with the IEPA to provide low interest financing for Sewerage
improvements. Final repayment schedule for the IEPA Revenue Bonds of 2025 is not available at the time of the
issuance of this report. IEPA revenue bonds currently outstanding are as follows:

Issue

Fund Debt
Retired by

IEPA Revenue Bonds of 2006,
L17-2597,
due
in
annual
installments of $27,847 including
interest
at
2.50%
through
September 13, 2026.

Sewer

IEPA Revenue Bonds of 2007,
L17-2807 & L17-2808, due in
annual installments of $41,495
including interest at 2.50%
through October 21, 2027.

Sewer

Beginning
Balances

$

Issuances

Retirements

Ending
Balances

53,996

—

26,663

27,333

118,338

—

38,778

79,560

75

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
IEPA Revenue Bonds - Continued

Issue

Fund Debt
Retired by

IEPA Revenue Bonds of 2010,
L17-2952,
due
in
annual
installments of $8,822 including
interest at 0.00% through April 7,
2030.

Sewer

IEPA Revenue Bonds of 2011,
L17-4005,
due
in
annual
installments of $42,888 including
interest at 1.25% through July 18,
2031.

Beginning
Balances

$

Issuances

Retirements

Ending
Balances

48,520

—

8,822

39,698

Sewer

286,599

—

39,432

247,167

IEPA Revenue Bonds of 2012,
L17-4672,
due
in
annual
installments of $47,414 including
interest at 2.295% through August 5,
2032.

Sewer

344,734

—

39,729

305,005

IEPA Revenue Bonds of 2013,
L17-4725, due in semi annual
installments of $17,634 including
interest at 1.93% through December
1, 2033.

Sewer

285,633

—

29,900

255,733

IEPA Revenue Bonds of 2014,
L17-4889, due in semi annual
installments of $19,563 including
interest
at
1.995%
through
December 3, 2034.

Sewer

353,112

—

32,241

320,871

IEPA Revenue Bonds of 2016,
L17-5100, due in semi annual
installments of $21,519 including
interest at 1.86% through July 19,
2036.

Sewer

460,967

—

34,624

426,343

IEPA Revenue Bonds of 2017,
L17-3763,
due
in
annual
installments of $533,021 including
interest at 1.76% through May 18,
2040.

Water

7,404,581

—

404,472

7,000,109

76

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
IEPA Revenue Bonds - Continued

Issue

Fund Debt
Retired by

IEPA Revenue Bonds of 2018,
L17-5509, due in annual installments
of $47,546 including interest at
1.76% through April 4, 2038.

Sewer

IEPA Revenue Bonds of 2019,
L17-5572, due in annual installments
of $112,822 including interest at
1.84% through April 3, 2040.

Beginning
Balances

$

Issuances

Retirements

Ending
Balances

569,105

—

37,695

531,410

Sewer

1,515,462

—

85,328

1,430,134

IEPA Revenue Bonds of 2022,
L17-5654, due in annual installments
including interest at 1.11% through
December 13, 2042.

Sewer

618,752

—

31,237

587,515

IEPA Revenue Bonds of 2025,
L17-6041, due in annual installments
including interest at 1.87% through
March 17, 2046.

Sewer

—

563,872

—

563,872

12,059,799

563,872

808,921

11,814,750

Installment Contracts
In June 2013, the Village received formal notification from the Office of the State Fire Marshal and the Illinois
Finance Authority that the Village had been approved for a $250,000 interest free loan for the purchase of a fire
truck. The loan is from the Fire Trust Revolving Loan Program and is to be paid back in equal installments over
20 years. The loan was used to help defray the cost of the purchase of a new Emergency One Fire Pumping
Apparatus to replace an approximately 25-year-old pumper. Installment contracts currently outstanding are
governmental and are as follows:
Issue

Fund Debt
Retired by

$250,000 Installment Contract of
2012 - due in annual installments
of $12,500 through November 1,
2032.

General

Beginning
Balances

$

100,000

77

Issuances

Retirements

—

12,500

Ending
Balances

87,500

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
Lease Payable
The Village has the following leases outstanding at year end:
Lease

Start Date

End Date

Payments

Interest Range

AXON Body Cameras
License Plate Readers
Temporary Police Department

3/7/2023
2/28/2023
12/1/2025

3/7/2027
2/28/2028
11/1/2027

$100,505 per Year
$7,292 - $23,600 per Year
$12,707 per Month

3.66%
3.66%
3.66%

The future principal and interest lease payments as of the year-end were as follows:
Fiscal
Year
2026
2027

$

Principal

Interest

Total
Payments

290,920
241,240

17,068
56,330

307,988
297,570

532,160

73,398

605,558

Subscriptions Payable
The Village has the following subscriptions payable at year end:
Subscription

Start Date

End Date

Payments

Interest Rate

CitizenServe Permitting Software

10/21/2025

2/4/2030

$64,350 per Year

4.00%

The future principal and interest subscription arrangement payments as of the year-end were as follows:
Fiscal
Year
2026
2027
2028
2029
2030

Governmental Activities
Principal
Interest
$

54,549
56,381
58,276
60,235
62,258

9,801
7,968
6,074
4,116
2,092

291,699

30,051

78

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
Long-Term Liabilities Activity
Changes in long-term liabilities during the fiscal year were as follows:

Type of Debt
Governmental Activities
Compensated Absences
Net Pension Liabilities/(Asset)
IMRF
Police Pension
Firefighters' Pension
Total OPEB Liability - RBP
General Obligation Bonds Payable
Plus: Unamortized Premium
Installment Contracts Payable
Lease Payable
Subscription Payable

Business-Type Activities
Compensated Absences
Total OPEB Liability - RBP
General Obligation Bonds Payable
Plus: Unamortized Premium
IEPA Loans Payable

$

$

Deductions

Ending
Balances

Amounts
Due within
One Year

197,699

—

4,264,440

852,888

3,129,204
26,151,101
31,099,823
5,055,379
11,910,000
1,063,479
100,000
391,509
—

—
—
—
—
—
—
—
294,534
291,699

6,613,604
4,317,732
7,848,731
24,496
3,225,000
400,259
12,500
153,883
—

(3,484,400)
21,833,369
23,251,092
5,030,883
8,685,000
663,220
87,500
532,160
291,699

—
—
—
374,096
1,705,000
—
12,500
290,920
54,549

82,967,236

783,932

22,596,205

61,154,963

3,289,953

276,800
1,237,885
89,295,000
2,901,140
12,059,799

—
—
—
—
563,872

19,300
23,877
1,930,000
137,762
808,921

257,500
1,214,008
87,365,000
2,763,378
11,814,750

51,500
90,272
1,925,000
—
823,588

105,770,624

563,872

2,919,860

103,414,636

2,890,360

Beginning
Balances

Additions

4,066,741

For governmental activities, the General Fund makes payments on the net pension liabilities/(assets), the total
OPEB liability, the installment contracts payable, the lease payable, and the subscription payable. The Debt
Service Fund makes payments on the general obligation bonds payable.
For the business-type activities the Water, the Sewer, and the Parking Meter Funds make payments on the total
OPEB liability. The Water and Sewer Funds make payments on the general obligation bonds payable. The Water
Fund and Sewer Fund make payments on the IEPA loans payable.
Compensated absences are reported as the net change amount for the fiscal year.
79

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
Legal Debt Margin
Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. “The
General Assembly may limit by law the amount and require referendum approval of debt to the incurred by home
rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of
the assessed value of its taxable property…(2) if its population is more than 25,000 and less than 500,000 an
aggregate of one percent: indebtedness which is outstanding on the effective date (July 1, 1971) of this
constitution or which is thereafter approved by referendum…shall not be included in the foregoing percentage
amounts.” To date the Illinois General Assembly has set no limits for home rule municipalities. The Village is a
home rule municipality.
Debt Service Requirements to Maturity
The annual debt service requirements to maturity, including principal and interest, are as follows:
Governmental Activities
General Obligation
Bonds Payable
Installment Contracts
Principal
Interest
Principal
Interest

Fiscal
Year
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
Totals

$

1,705,000
580,000
595,000
545,000
560,000
585,000
600,000
620,000
630,000
650,000
670,000
180,000
185,000
190,000
195,000
195,000

272,043
198,043
180,593
161,568
145,318
125,518
106,368
90,018
73,118
55,918
38,168
19,868
16,268
12,568
8,532
4,400

12,500
12,500
12,500
12,500
12,500
12,500
12,500
—
—
—
—
—
—
—
—
—

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

8,685,000

1,508,309

87,500

—

80

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
LONG-TERM OBLIGATIONS - Continued
Debt Service Requirements to Maturity - Continued
Business-Type Activities
General Obligation
IEPA
Bonds Payable
Loans Payable
Principal
Interest
Principal
Interest

Fiscal
Year
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Totals

$

1,925,000
2,435,000
2,570,000
3,055,000
3,200,000
3,340,000
3,425,000
3,580,000
3,560,000
3,650,000
3,740,000
3,825,000
4,090,000
4,200,000
4,360,000
4,475,000
4,540,000
4,415,000
2,665,000
2,735,000
2,810,000
2,885,000
2,965,000
3,045,000
2,935,000
2,940,000

2,664,885
2,573,923
2,461,481
2,343,093
2,215,715
2,082,609
1,964,289
1,866,107
1,772,431
1,679,969
1,591,563
1,500,262
1,404,872
1,288,776
1,167,015
1,040,266
908,988
774,794
644,816
574,070
500,343
422,901
343,294
261,396
177,268
95,607

823,588
809,569
783,263
797,008
806,587
816,423
787,901
749,124
732,278
705,893
718,266
687,620
675,853
663,668
618,844
37,289
37,704
—
—
—
—
—
—
—
—
—

193,717
178,944
164,700
150,955
136,964
122,718
108,353
94,403
81,293
68,552
56,179
43,787
31,791
20,193
8,605
729
314
—
—
—
—
—
—
—
—
—

87,365,000

34,320,733

11,250,878

1,462,197

81

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
NET POSITION CLASSIFICATIONS
Net investment in capital assets was comprised of the following as of December 31, 2025:
Governmental Activities
Capital Assets - Net of Accumulated Depreciation

$

73,027,796

Plus:
Loss on Refunding
Unspent Bond Proceeds

143,397
1,026,067

Less Capital Related Debt:
General Obligation Bonds Payable
Unamortized Premiums
Installment Contracts Payable
Lease Payable
Subscription Payable

(8,685,000)
(663,220)
(87,500)
(532,160)
(291,699)

Net Investment in Capital Assets

63,937,681

Business-Type Activities
Capital Assets - Net of Accumulated Depreciation
Plus: Unspent Bond Proceeds

$ 168,943,989
2,019,095

Less Capital Related Debt:
General Obligation Bonds Payable
Unamortized Premiums
IEPA Loans Payable

(87,365,000)
(2,763,378)
(11,814,750)

Net Investment in Capital Assets

69,019,956

82

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
FUND BALANCE CLASSIFICATIONS
In the governmental funds financial statements, the Village considers restricted amounts to have been spent when
an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The
Village first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred
for purposes for which all three unrestricted fund balances are available.
Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not in a
spendable form; or b) legally or contractually required to be maintained intact.
Restricted Fund Balance. Consists of resources that are restricted to specific purposes, that is, when constraints
placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants),
grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional
provisions or enabling legislation.
Committed Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific purposes by the
government itself, using its highest level of decision-making authority, the Board of Trustees; to be reported as
committed, amounts cannot be used for any other purpose unless the government takes the same highest-level
action to remove or change the constraint.
Assigned Fund Balance. Consists of amounts that are constrained by the Board of Trustees’ intent to be used for
specific purposes but are neither restricted nor committed. Intent is expressed by a) the Board of Trustees itself or
b) a body or official to which the Board of Trustees has delegated the authority to assign amounts to be used for
specific purposes. The Village’s highest level of decision-making authority is the Board of Trustees, who is
authorized to assign amounts to a specific purpose.
Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted, committed, or
assigned within the General Fund and deficit fund balances of other governmental funds.
Minimum Fund Balance Policy. The Village’s policy is cash flow based. It states that the General Fund should
maintain a minimum fund balance equal to 25% of projected annual expenditures with a target level of 30% of
operating expenditures. Excess balances will be allocated for one-time capital needs.
Although the Village has reported land held for resale of $630,000 in the General Fund at year-end, the Village
also secured a line of credit related to the purchase of the land which it has not exercised at December 31, 2025.
Due to the fact that the Village can exercise the line of credit at any time and immediately replenish the cash in
the General Fund used to purchase the land, the land held for resale is not reported as nonspendable fund balance
at December 31, 2025.

83

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 3 - DETAIL NOTES ON ALL FUNDS - Continued
FUND BALANCE CLASSIFICATIONS - Continued
The following is a schedule of fund balance classifications for the governmental funds as of the date of this report:
General
Fund Balances
Nonspendable
Prepaids
IRMA Insurance Deposit

Capital
Projects

Nonmajor

Totals

122,616
2,767,130
2,889,746

—
—
—

—
—
—

—
—
—

122,616
2,767,130
2,889,746

3,472,909
—
—
—
3,472,909

—
—
—
—
—

—
1,026,067
—
—
1,026,067

—
—
447,700
414,841
862,541

3,472,909
1,026,067
447,700
414,841
5,361,517

Assigned
Capital Projects

2,444,500

—

—

—

2,444,500

Unassigned

24,416,779

(31,614)

(2,271,866)

—

22,113,299

Total Fund Balances

33,223,934

(31,614)

(1,245,799)

862,541

32,809,062

Restricted
Police Seizures
Capital Projects
Motor Fuel Tax
Fire Insurance Tax

$

Debt
Service

NOTE 4 - OTHER INFORMATION
RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; illnesses to employees; and natural disasters. These risks are provided for
through participation in the Intergovernmental Risk Management Agency and the North Suburban Employee
Benefit Cooperative. Premiums have been displayed as expenditures/expenses in appropriate funds. There were
no significant changes in insurance coverages from the prior year and settlements did not exceed insurance
coverage in any of the past three fiscal years.

84

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
RISK MANAGEMENT - Continued
Intergovernmental Risk Management Agency (IRMA)
The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of
municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois
Intergovernmental Cooperation Statute to pool its risk management needs. The agency administers a mix of selfinsurance and commercial insurance coverages; property/casualty and workers’ compensation claim
administration /litigation management services; unemployment claim administration; extensive risk management/
loss control consulting and training programs; and a risk information system and financial reporting service for its
members.
The Village’s payments to IRMA are displayed on the financial statements as expenditures/expenses in
appropriate funds. Each member assumes the first $1,000 of each occurrence for years prior to 2004 and $2,500
for each occurrence in 2004 and subsequent years. Beginning in 2005, members were given the option to assume
higher deductibles. IRMA has a mix of self-insurance and commercial insurance at various amounts about that
level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board
of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation
on the Board of Directors. Initial contributions are determined each year based on the individual member’s
eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member
loss experience. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership
year during which they were a member. Supplemental contributions may be required to fund these deficits.
North Suburban Employee Benefit Cooperative (NSEBC)
The Village participates in the North Suburban Employee’s Benefit Cooperative (NSEBC), an agency of
governmental entities created to finance and administer medical and dental care benefits to employees of its
member organizations. Each municipality appoints one representative to serve on the Board of Directors. The
Board determines the general policies, which includes approval of the annual budget. Members are contractually
obligated to make all monthly payments and to fund any deficit upon dissolution of the pool. They will share in
any surplus of the pool based on a decision by the Board. There were no significant changes in insurance
coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal
years. The Village reports insurance activities within the Employee Insurance Fund. The Village’s total payments
for the year ended December 31, 2025 were $4,205,773.
JOINT VENTURE
Solid Waste Agency of Northern Cook County (SWANCC)
The Village is a member of the Solid Waste Agency of Northern Cook County (SWANCC) which consists of
twenty-three municipalities. SWANCC is a municipal corporation and public body politic established pursuant to
the Constitution Act of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as
amended.
SWANCC is empowered to plan, construct, finance, operate, and maintain a solid waste disposal system to serve
its members. SWANCC is governed by a Board of Directors which consists of one appointed representative from
each member municipality. Each Director has an equal vote. The officers of SWANCC are appointed by the
Board of Directors.
85

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
JOINT VENTURE - Continued
Solid Waste Agency of Northern Cook County (SWANCC) - Continued
The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves contracts,
adopts resolutions providing for the issuance of bonds or notes by SWANCC, adopts bylaws, rules and
regulations, and exercises such powers and performs such duties as may be prescribed in the SWANCC
agreement or the by-laws. Separate audited financial statements are available at 77 West Hintz Road, Wheeling,
Illinois 60090.
SWANCC’s bonds are revenue obligations. They are limited obligations of SWANCC, with a claim for payment
solely from and secured by a pledge of the revenues of the system, and amounts in various funds and accounts
established by SWANCC resolutions. SWANCC has no power to levy taxes.
Revenues of the system consist of: (a) all receipts derived from Solid Waste Disposal Contracts or any other
contracts for the disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees,
service charges, and all grants, rents, and receipts derived by SWANCC from the ownership and operation of the
system.
SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all its requirements.
SWANCC has entered into Solid Waste Disposal Contracts with the member municipalities. The Contracts are
irrevocable, and may not be terminated or amended, except as provided in the Contract. Each member is
obligated, on a “take or pay” basis, to purchase or in any event to pay for a minimum annual cost of the system.
The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable,
without regard to performance or nonperformance by SWANCC of its obligations under this Contract.
The payments required to be made by the Village under this Contract are required to be made solely from
revenues to be derived by the Village from the operation of the Municipal Waste System Fund.
The Village is not prohibited by the Contract from using any other funds to make the payments required by the
Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any statutory or
constitutional limitation. In accordance with the joint venture agreement, the Village remitted $346,855 to
SWANCC for the year ended December 31, 2025, which is recorded in the Village’s General Fund.
CONTINGENT LIABILITIES
Litigation
From time to time, the Village is party to various pending claims and legal proceedings with respect to
employment, civil rights, property taxes and other matters. Although the outcome of such matters cannot be
forecasted with certainty, it is the opinion of management and the Village attorney that the likelihood is remote
that any such claims or proceedings will have a material adverse effect on the Village's financial position or
results of operations.

86

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
CONTINGENT LIABILITIES - Continued
Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal government. Any disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor
cannot be determined at this time although the Village expects such amounts, if any, to be immaterial.
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), a
defined benefit agent multiple-employer public employee retirement system, the Police Pension Plan which is a
single-employer pension plan, and the Firefighters’ Pension Plan which is a single-employer pension plan. A
separate report is issued for the Police Pension Plan and Firefighters’ Pension Plan and is available by contacting
the Village. IMRF also issues a publicly available financial report that includes financial statements and required
supplementary information for the plan as a whole, but not by individual employer. That report may be obtained
online at www.imrf.org. The benefits, benefit levels, employee contributions, and employer contributions are
governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly.
The aggregate amounts recognized for the three pension plans are:

Pension
Expense
IMRF
Police Pension
Firefighters' Pension

$

Net Pension
Liability/
(Asset)

Deferred
Outflows of
Resources

Deferred
Inflows of
Resources

1,458,402
3,167,440
3,050,051

(3,484,400)
21,833,369
23,251,092

301,477
3,682,471
1,411,171

(4,884,488)
(6,028,483)
(6,181,777)

7,675,893

41,600,061

5,395,119

(17,094,748)

Illinois Municipal Retirement Fund (IMRF)
Plan Descriptions
Plan Administration. All employees (other than those covered by the Police and Firefighters’ Pension Plan) hired
in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating
members. The plan is accounted for on the economic resources measurement focus and the accrual basis of
accounting. Employer and employee contributions are recognized when earned in the year that the contributions
are required, benefits and refunds are recognized as an expense and liability when due and payable.
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).
87

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Illinois Municipal Retirement Fund (IMRF) - Continued
Plan Descriptions - Continued
Benefits Provided - Continued. IMRF provides two tiers of pension benefits. 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.

Plan Membership. As of December 31, 2025, the measurement date, the following employees were covered by
the benefit terms:
Inactive Plan Members Currently Receiving Benefits
Inactive Plan Members Entitled to but not yet Receiving Benefits
Active Plan Members

194
92
118

Total

404

Contributions. As set by statute, the Village’s Regular Plan Members are required to contribute 4.50% 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. For the year-ended December 31, 2025,
the Village’s contribution was 7.35% of covered payroll.

88

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Illinois Municipal Retirement Fund (IMRF) - Continued
Plan Descriptions - Continued
Net Pension Liability. The Village’s net pension liability was measured as of December 31, 2025. The total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed, as of
December 31, 2025, using the following actuarial methods and assumptions:
Actuarial Cost Method

Entry Age
Normal

Asset Valuation Method

Fair Value

Actuarial Assumptions
Interest Rate

7.25%

Salary Increases

2.85% to 13.75%

Cost of Living Adjustments

2.75%

Inflation

2.25%

For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree, Male
(adjusted 108.0%) and Female (adjusted 106.4%) tables, and future mortality improvements projected using scale
MP-2021. For disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Disabled
Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale
MP-2021. For active members, the Pub-2010, Amount-Weighted, below-median income, General, Employee,
Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2021.
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:

89

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Illinois Municipal Retirement Fund (IMRF) - Continued
Plan Descriptions - Continued
Actuarial Assumptions - Continued.

Asset Class

Target

Long-Term
Expected Real
Rate of Return

Fixed Income
Domestic Equities
International Equities
Real Estate
Blended
Cash and Cash Equivalents

24.00%
32.50%
18.00%
10.50%
14.00%
1.00%

4.75%
7.35%
7.45%
6.25%
3.90% - 8.50%
3.00%

Discount Rate
The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. The
projection of cash flows used to determine the discount rate assumed that member contributions will be made at
the current contribution rate and that Village contributions will be made at rates equal to the difference between
the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s
fiduciary net position was projected to be available to make all project future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period
of projected benefit payments to determine the total pension liability.
Discount Rate Sensitivity
The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table
below presents the net pension liability/(asset) of the Village calculated using the discount rate as well as what the
Village’s net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage
point lower or one percentage point higher than the current rate:

Net Pension Liability/(Asset)

1% Decrease
(6.25%)

Current
Discount Rate
(7.25%)

1% Increase
(8.25%)

$ 6,248,748

(3,484,400)

(11,321,460)

90

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Illinois Municipal Retirement Fund (IMRF) - Continued
Changes in the Net Pension Liability/(Asset)
Total
Pension
Liability
(A)
Balances at December 31, 2024

$

Plan Fiduciary
Net Position
(B)

Net Pension
Liability/
(Asset)
(A) - (B)

86,643,135

83,513,931

3,129,204

1,174,259
6,141,290
—

—
—
—

1,174,259
6,141,290
—

Changes for the Year:
Service Cost
Interest on the Total Pension Liability
Changes of Benefit Terms
Difference Between Expected and Actual
Experience of the Total Pension Liability
Changes of Assumptions
Contributions - Employer
Contributions - Employees
Net Investment Income
Benefit Payments, Including Refunds
of Employee Contributions
Other (Net Transfer)

82,196
—
—
—

—
—
934,453
571,132
13,025,097

82,196
—
(934,453)
(571,132)
(13,025,097)

(5,045,620)
—

(5,045,620)
(519,333)

—
519,333

Net Changes

2,352,125

8,965,729

(6,613,604)

Balances at December 31, 2025

88,995,260

92,479,660

(3,484,400)

91

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Illinois Municipal Retirement Fund (IMRF) - Continued
Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions
For the year ended December 31, 2025, the Village recognized pension expense of $1,458,402. At December 31,
2025, the Village reported deferred outflows or resources and deferred inflows of resources related to pensions
from the following sources:

Difference Between Expected and Actual Experience
Change in Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments

Deferred
Outflows of
Resources

Deferred
Inflows of
Resources

301,477
—

(145,674)
(10,096)

155,803
(10,096)

—

(4,728,718)

(4,728,718)

301,477

(4,884,488)

(4,583,011)

$

Total Deferred Amounts Related to IMRF

Totals

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense in future periods as follows:
Net Deferred
Outflows/
(Inflows)
of Resources

Fiscal
Year
2026
2027
2028
2029
2030
Thereafter

$

Total

1,210,550
(2,482,247)
(1,887,817)
(1,423,497)
—
—
(4,583,011)

92

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Police Pension Plan
Plan Descriptions
Plan Administration. The Police Pension Plan is a single-employer defined benefit pension plan that covers all
sworn police personnel. The defined benefits and employee and minimum employer contribution levels are
governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The
Village accounts for the Fund as a pension trust fund. The Fund is governed by a five-member pension board.
Two members of the Board are appointed by the Village President, one member is elected by pension
beneficiaries and two members are elected by active police employees.
Plan Membership. At December 31, 2025, the measurement date, membership consisted of the following:
Inactive Plan Members Currently Receiving Benefits
Inactive Plan Members Entitled to but not yet Receiving Benefits
Active Plan Members

54
4
48

Total

106

Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois State
Statutes.
The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability
benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with 20 or
more years of creditable service are entitled to receive an annual retirement benefit of ½ 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 annual
benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up to 30
years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years of
credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer
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 percent of the original
pension and 3 percent compounded annually thereafter.

93

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Police Pension Plan - Continued
Plan Descriptions - Continued
Benefits Provided - Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of
55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to
the average monthly salary obtained by dividing the total salary of the police officer during the 48 consecutive
months of service within the last 60 months of service in which the total salary was the highest by the number of
months of service in that period. Police officer salary for the pension purposes is capped at $106,800 as of 2011,
and indexed annually to the lesser of ½ of the annual change in the Consumer Price Index or 3 percent. The
annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years
up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after
age 50 and receive a reduced benefit (i.e., ½ percent for each month under 55). The monthly benefit of a Tier 2
police officer shall be increased annually at age 60 on the January 1st after the police officer 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 percent or ½ of the change in the Consumer Price Index for the
proceeding calendar year.
Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension
Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee
contributions may be refunded without accumulated interest. The Village is required to contribute the remaining
amounts necessary to finance the plan and the administrative costs as actuarially determined by an enrolled
actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount annually
calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of the past
service cost by the year 2040. For the year-ended December 31, 2025, the Village’s contribution was 49.49% of
covered payroll.
Significant Investments. At year end, the Pension Plan does not have any investments over 5 percent of net plan
position available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S.
government and investments in mutual funds, external investment pools, and other pooled investments).

94

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Police Pension Plan - Continued
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation performed, as of December 31, 2025, using
the following actuarial methods and assumptions:
Actuarial Cost Method

Entry Age
Normal

Asset Valuation Method

Fair Value

Actuarial Assumptions
Interest Rate

7.25%

Salary Increases

Service Based

Cost of Living Adjustments

3.00%

Inflation

2.25%

Mortality rates were based on the PubS-2010 employee mortality, unadjusted, with generational improvements
with most recent projection scale (currently Scale MP-2021). 10% of active deaths are assumed to be in the line of
duty.
Discount Rate
The discount rate used to measure the total pension liability was 7.25%, the same as the prior valuation. The
projection of cash flows used to determine the discount rate assumed that member contributions will be made at
the current contribution rate and that Village contributions will be made at rates equal to the difference between
the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s
fiduciary net position was projected to be available to make all project future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period
of projected benefit payments to determine the total pension liability.

95

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Police Pension Plan - Continued
Discount Rate Sensitivity
The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below
presents the net pension liability of the Village calculated using the discount rate as well as what the Village’s net
pension liability would be if it were calculated using a discount rate that is one percentage point lower or one
percentage point higher than the current rate:

1% Decrease
(6.25%)
Net Pension Liability

$

33,957,536

Current
Discount Rate
(7.25%)

1% Increase
(8.25%)

21,833,369

11,846,193

Changes in the Net Pension Liability
Total
Pension
Liability
(A)
Balances at December 31, 2024

$

Plan Fiduciary Net Pension
Net Position
Liability
(B)
(A) - (B)

89,224,250

63,073,149

26,151,101

972,380
6,356,914
—

—
—
—

972,380
6,356,914
—

Changes for the Year:
Service Cost
Interest on the Total Pension Liability
Changes of Benefit Terms
Difference Between Expected and Actual
Experience of the Total Pension Liability
Changes of Assumptions
Contributions - Employer
Contributions - Employees
Net Investment Income
Benefit Payments, Including Refunds
of Employee Contributions
Other (Net Transfer)

2,659,612
—
—
—
—

—
—
2,795,000
559,734
11,007,890

2,659,612
—
(2,795,000)
(559,734)
(11,007,890)

(5,030,121)
—

(5,030,121)
(55,986)

—
55,986

Net Changes

4,958,785

9,276,517

(4,317,732)

Balances at December 31, 2025

94,183,035

72,349,666

21,833,369

96

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Police Pension Plan - Continued
Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions
For the year ended December 31, 2025, the Village recognized pension expense of $3,167,440. At December 31,
2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred
Outflows of
Resources
Difference Between Expected and Actual Experience
Change in Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments

$

Total Deferred Amounts Related to Police Pension

Deferred
Inflows of
Resources

Totals

3,682,471
—

(1,705,676)
(162,944)

1,976,795
(162,944)

—

(4,159,863)

(4,159,863)

3,682,471

(6,028,483)

(2,346,012)

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense in future periods as follows:
Net Deferred
Outflows/
(Inflows)
of Resources

Fiscal
Year
2026
2027
2028
2029
2030
Thereafter

$

Total

1,377,948
(1,764,768)
(1,119,741)
(1,282,720)
443,269
—
(2,346,012)

97

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Firefighters’ Pension Plan
Plan Descriptions
Plan Administration. The Firefighters’ Pension Plan is a single-employer defined benefit pension plan that covers
all sworn firefighter personnel. The defined benefits and employee and minimum employer contribution levels are
governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The
Village accounts for the Fund as a pension trust fund. The Fund is governed by a five-member pension board.
Two members of the Board are appointed by the Village President, one member is elected by pension
beneficiaries and two members are elected by active fire employees.
Plan Membership. At December 31, 2025, the measurement date, membership consisted of the following:
Inactive Plan Members Currently Receiving Benefits
Inactive Plan Members Entitled to but not yet Receiving Benefits
Active Plan Members

62
4
45

Total

111

Benefits Provided. The following is a summary of the Firefighters’ Pension Plan as provided for in Illinois State
Statutes.
The Firefighters’ Pension Plan provides retirement benefits through two tiers of benefits as well as death and
disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or older with
20 or more years of creditable service are entitled to receive an annual retirement benefit of ½ 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
annual benefit shall be increased by 2.5 percent of such salary for each additional year of service over 20 years up
to 30 years, to a maximum of 75 percent of such salary. Employees with at least eight years but less than 20 years
of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit 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 percent of the original
pension and 3 percent compounded annually thereafter.

98

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Firefighters’ Pension Plan - Continued
Plan Descriptions - Continued
Benefits Provided - Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining the age of
55 or older with 10 or more years of creditable service are entitled to receive an annual retirement benefit equal to
the average monthly salary obtained by dividing the total salary of the firefighter during the 48 consecutive
months of service within the last 60 months of service in which the total salary was the highest by the number of
months of service in that period. Firefighters’ salary for the pension purposes is capped at $106,800 as of 2011,
and indexed annually to the lesser of ½ of the annual change in the Consumer Price Index or 3 percent. The
annual benefit shall be increased by 2.5 percent of such a salary for each additional year of service over 20 years
up to 30 years to a maximum of 75 percent of such salary. Employees with at least 10 years may retire at or after
age 50 and receive a reduced benefit (i.e., ½ percent 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 percent or ½ of the change in the Consumer Price Index for the
proceeding calendar year.
Contributions. Covered employees are required to contribute 9.455% of their base salary to the Firefighters’
Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The Village is required to contribute the
remaining amounts necessary to finance the plan and the administrative costs as actuarially determined by an
enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to contribute a minimum amount
annually calculated using the projected unit credit actuarial cost method that will result in the funding of 90% of
the past service cost by the year 2040. For the year-ended December 31, 2025, the Village’s contribution was
61.82% of covered payroll.
Significant Investments. At year end, the Pension Plan does not have any investments over 5 percent of net plan
position available for retirement benefits (other than investments issued or explicitly guaranteed by the U.S.
government and investments in mutual funds, external investment pools, and other pooled investments).

99

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Firefighters’ Pension Plan - Continued
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation performed, as of December 31, 2025, using
the following actuarial methods and assumptions:
Actuarial Cost Method

Entry Age
Normal

Asset Valuation Method

Fair Value

Actuarial Assumptions
Interest Rate

7.25%

Salary Increases

Service Based

Cost of Living Adjustments

3.00%

Inflation

2.50%

Mortality rates were based on the PubS-2010 Employee mortality, unadjusted, with generational improvements
with the most recent projection scale (currently Scale MP-2021). 20% of active deaths are assumed to be in the
line of duty.
Discount Rate
The discount rate used to measure the total pension liability was 7.25%, the same as the prior year. The projection
of cash flows used to determine the discount rate assumed that member contributions will be made at the current
contribution rate and that Village contributions will be made at rates equal to the difference between the
actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary
net position was projected to be available to make all project future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all period of
projected benefit payments to determine the total pension liability.

100

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Firefighters’ Pension Plan - Continued
Discount Rate Sensitivity
The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below
presents the net pension liability of the Village calculated using the discount rate as well as what the Village’s net
pension liability would be if it were calculated using a discount rate that is one percentage point lower or one
percentage point higher than the current rate:

1% Decrease
(6.25%)
Net Pension Liability

$

36,012,351

Current
Discount Rate
(7.25%)

1% Increase
(8.25%)

23,251,092

12,956,642

Changes in the Net Pension Liability
Total
Pension
Liability
(A)
Balances at December 31, 2024

$

Plan Fiduciary Net Pension
Net Position
Liability
(B)
(A) - (B)

96,308,893

65,209,070

31,099,823

1,152,988
6,866,513
—

—
—
—

1,152,988
6,866,513
—

Changes for the Year:
Service Cost
Interest on the Total Pension Liability
Changes of Benefit Terms
Difference Between Expected and Actual
Experience of the Total Pension Liability
Changes of Assumptions
Contributions - Employer
Contributions - Employees
Net Investment Income
Benefit Payments, Including Refunds
of Employee Contributions
Other (Net Transfer)

(432,368)
(192,718)
—
—
—

—
—
3,416,000
522,473
11,339,911

(432,368)
(192,718)
(3,416,000)
(522,473)
(11,339,911)

(5,502,719)
—

(5,502,719)
(35,238)

—
35,238

Net Changes

1,891,696

9,740,427

(7,848,731)

Balances at December 31, 2025

98,200,589

74,949,497

23,251,092

101

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
EMPLOYEE RETIREMENT SYSTEM - DEFINED BENEFIT PENSION PLANS - Continued
Firefighters’ Pension Plan - Continued
Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions
For the year ended December 31, 2025, the Village recognized pension expense of $3,050,051. At December 31,
2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:

Difference Between Expected and Actual Experience
Change in Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments

$

Total Deferred Amounts Related to Firefighters' Pension

Deferred
Outflows of
Resources

Deferred
Inflows of
Resources

Totals

1,411,171
—

(471,445)
(160,600)

939,726
(160,600)

—

(5,549,732)

(5,549,732)

1,411,171

(6,181,777)

(4,770,606)

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense in future periods as follows:
Net Deferred
Outflows/
(Inflows)
of Resources

Fiscal
Year
2026
2027
2028
2029
2030
Thereafter

$

Total

509,083
(2,249,923)
(1,459,575)
(1,466,013)
(104,178)
—
(4,770,606)

102

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
OTHER POST-EMPLOYMENT BENEFITS
General Information about the OPEB Plan
Plan Description. The Village’s defined benefit OPEB plan, Retiree Benefits Plan (RBP), provides OPEB for all
permanent full-time general and public safety employees of the Village. RBP is a single-employer defined benefit
OPEB plan administered by the Village. Article 11 of the State Compiled Statutes grants the authority to establish
and amend the benefit terms and financing requirements to the Village Board. No assets are accumulated in a trust
that meets the criteria in paragraph 4 of Statement 75.
Benefits Provided. RBP provides a retired employee and his or her spouse and eligible dependents are eligible to
continue health insurance identical to active employees if they meet the eligibility for retirement under the
applicable retirement plan. The retiree is responsible for paying the entire monthly premium for health coverage
and that of any covered spouse or eligible dependents. At age 65, Medicare becomes primary.
Plan Membership. As of December 31, 2025, the measurement date, the following employees were covered by
the benefit terms:
Inactive Plan Members Currently Receiving Benefits
Inactive Plan Members Entitled to but not yet Receiving Benefits
Active Plan Members

51
—
197

Total

248

Total OPEB Liability
The Village’s total OPEB liability was measured as of December 31, 2025, and was determined by an actuarial
valuation as of December 31, 2024.
Actuarial Assumptions and Other Inputs. The total OPEB liability in the December 31, 2024 actuarial valuation
was determined using the following actuarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:

103

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
OTHER POST-EMPLOYMENT BENEFITS - Continued
Total OPEB Liability - Continued
Actuarial Assumptions and Other Inputs - Continued.
Inflation

2.50%

Salary Increases

Varies by Service

Discount Rate

4.43%

Healthcare Cost Trend Rates

Initial rate of 7.90% in fiscal 2025, grading down to
the ultimate trend rate of 4.25% in fiscal year 2074.

Retirees' Share of Benefit-Related Costs

100% of the active premium rate.

The discount rate was based on the S&P Municipal Bond 20-year high grade rate index as published by S&P Dow
Jones Indices as of December 31, 2025. The 20-Bond Index consists of 20 general obligation bonds that mature in
20 years. The average rating of the 20 bonds is roughly equivalent to Moody's Investors Service's Aa2 rating and
Fitch's AA.
Mortality rates were based on PubS-2010 Employee mortality, projected 5 years past the valuation date with Scale
MP-2021.
Change in the Total OPEB Liability
Total
OPEB
Liability
Balance at December 31, 2024

$

6,293,264

Changes for the Year:
Service Cost
Interest on the Total OPEB Liability
Changes of Benefit Terms
Difference Between Expected and Actual Experience
Changes of Assumptions or Other Inputs
Benefit Payments
Net Changes

220,348
268,950
—
—
(73,303)
(464,368)
(48,373)

Balance at December 31, 2025

6,244,891
104

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
OTHER POST-EMPLOYMENT BENEFITS - Continued
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The discount rate used to measure the total pension liability was 4.43%, while the prior valuation used 4.28%. The
following presents the total OPEB liability, calculated using the discount rate, as well as what the total OPEB
liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage
point higher:

1% Decrease
(3.43%)
Total OPEB Liability

$

6,756,060

Current
Discount Rate
(4.43%)
6,244,891

1% Increase
(5.43%)
5,785,076

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability, calculated using a variable Healthcare Trend Rate, as well as
what the total OPEB liability would be if it were calculated using a Healthcare Trend Rate that is one percentage
point lower or one percentage point higher:

Total OPEB Liability

$

1% Decrease
(Varies)

Healthcare
Cost Trend
Rates
(Varies)

1% Increase
(Varies)

5,649,091

6,244,891

6,947,270

105

VILLAGE OF WILMETTE, ILLINOIS
Notes to the Financial Statements
December 31, 2025

NOTE 4 - OTHER INFORMATION - Continued
OTHER POST-EMPLOYMENT BENEFITS - Continued
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended December 31, 2025, the Village recognized OPEB expense of $587,261. At December 31,
2025, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from
the following sources:
Deferred
Outflows of
Resources
Difference Between Expected and Actual Experience
Change in Assumptions
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments

$

Total Deferred Amounts Related to OPEB

Deferred
Inflows of
Resources

Totals

96,704
990,285

(297,248)
(154,606)

(200,544)
835,679

—

—

—

1,086,989

(451,854)

635,135

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Net Deferred
Outflows
of Resources

Fiscal
Year
2026
2027
2028
2029
2030
Thereafter

$

Total

96,213
123,696
87,660
91,885
107,382
128,299
635,135

106

REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information includes financial information and disclosures that are required by the
GASB but are not considered a part of the basic financial statements. Such information includes:
•

Schedule Employer Contributions - Last Ten Fiscal Years
Illinois Municipal Retirement Funds
Police Pension Fund
Firefighters' Pension Fund

•

Schedule of Changes in the Employer’s Net Pension Liability/(Asset) - Last Ten Measurement Years
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters' Pension Fund

•

Schedule of Investment Returns - Last Ten Fiscal Years
Police Pension Fund
Firefighters' Pension Fund

•

Schedule of Changes in the Employer's Total OPEB Liability
Retiree Benefit Plan

•

Budgetary Comparison Schedule
General Fund

Notes to the Required Supplementary Information
Budgetary Information - Budgets are adopted on a basis consistent with generally accepted accounting principles.

107

VILLAGE OF WILMETTE, ILLINOIS
Illinois Municipal Retirement Fund
Schedule of Employer Contributions - Last Ten Fiscal Years
December 31, 2025

Fiscal
Year

Actuarially
Determined
Contribution

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

$ 1,137,869
1,128,188
1,199,518
984,434
1,228,934
1,211,368
997,879
799,912
888,992
921,865

Contributions
in Relation to
the Actuarially
Determined
Contribution
$

1,137,869
1,131,369
1,199,518
984,434
1,228,780
1,211,368
997,879
799,912
888,992
934,453

Contribution
Excess/
(Deficiency)
$

—
3,181
—
—
(154)
—
—
—
—
12,588

Covered
Payroll
$

9,498,079
9,948,746
10,340,678
10,817,971
10,962,834
11,205,995
11,767,447
12,459,701
13,131,346
12,715,379

Contributions as
a Percentage of
Covered Payroll
11.98%
11.37%
11.60%
9.10%
11.21%
10.81%
8.48%
6.42%
6.77%
7.35%

Notes to the Required Supplementary Information:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age

Mortality

Aggregate Entry Age Normal
Level % Pay (Closed)
18 Years
5-Year Smoothed Fair Value
2.25%
2.85% to 13.75%, Including Inflation
7.25%
Experience-based table of rates that are specific to the type of eligibility
condition. Last updated for the 2023 valuation pursuant to an experience study
of the period 2020-2022.
For non-disabled retirees, the Pub-2010, Amount-Weighted, below-median
income, General, Retiree, Male (adjusted 108%) and Female (adjusted
106.4%) tables, and future mortality improvements projected using scale
MP-2021. For disabled retirees, the Pub-2010, Amount-Weighted, belowmedian income, General, Disabled Retiree, Male and Female (both
unadjusted) tables, and future mortality improvements projected using scale
MP-2021. For active members, the Pub-2010, Amount-Weighted, belowmedian income, General, Employee, Male and Female (both unadjusted)
tables, and future mortality improvements projected using scale MP-2021.

108

VILLAGE OF WILMETTE, ILLINOIS
Police Pension Fund
Schedule of Employer Contributions - Last Ten Fiscal Years
December 31, 2025

Fiscal
Year

Actuarially
Determined
Contribution

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

$ 1,890,902
2,022,056
2,062,486
2,237,585
2,492,900
2,395,655
2,143,073
2,317,419
2,580,870
2,537,847

Contributions
in Relation to
the Actuarially
Determined
Contribution
$

1,891,000
2,023,000
2,127,000
2,273,000
2,492,000
2,705,000
2,705,000
2,555,000
2,600,000
2,795,000

Contribution
Excess/
(Deficiency)
$

98
944
64,514
35,415
(900)
309,345
561,927
237,581
19,130
257,153

Covered
Payroll
$

4,539,433
4,363,788
4,540,859
4,790,179
4,948,108
5,096,433
5,375,237
5,158,375
5,463,885
5,648,174

Contributions as
a Percentage of
Covered Payroll
41.66%
46.36%
46.84%
47.45%
50.36%
53.08%
50.32%
49.53%
47.59%
49.49%

Notes to the Required Supplementary Information:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality

Entry Age Normal
Level % Pay
Open 14 Year Period
5-Year Smoothed Fair Value
2.25%
Service Based Rates
7.25%
50-70
PubS-2010 Employee mortality, unadjusted, with generational improvements
with most recent projection scale (currently Scale MP-2021). 10% of active
deaths are assumed to be in the line of duty.

109

VILLAGE OF WILMETTE, ILLINOIS
Firefighters' Pension Fund
Schedule of Employer Contributions - Last Ten Fiscal Years
December 31, 2025

Fiscal
Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

Actuarially
Determined
Contribution

Contributions
in Relation to
the Actuarially
Determined
Contribution

Contribution
Excess/
(Deficiency)

$

$

$

2,421,031
2,608,114
2,633,068
2,756,834
2,934,974
2,989,546
2,930,975
2,983,011
3,263,700
3,370,780

2,422,000
2,609,000
2,750,000
2,823,000
2,935,000
3,376,000
3,376,000
3,226,000
3,300,000
3,416,000

969
886
116,932
66,166
26
386,454
445,025
242,989
36,300
45,220

Covered
Payroll
$

4,481,012
4,296,430
4,591,448
4,719,208
4,793,064
4,995,704
5,240,032
5,030,524
5,160,159
5,525,891

Contributions as
a Percentage of
Covered Payroll
54.05%
60.72%
59.89%
59.82%
61.23%
67.58%
64.43%
64.13%
63.95%
61.82%

Notes to the Required Supplementary Information:
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality

Entry Age Normal
Level % Pay
Open 14 Year Period
5-Year Smoothed Fair Value
2.50%
Service Based Rates
7.25%
50 - 70
PubS-2010 Employee mortality, unadjusted, with generational
improvements with the most recent projection scale (currently Scale
MP-2021). 20% of active deaths are assumed to be in the line of duty.

110

VILLAGE OF WILMETTE, ILLINOIS
Illinois Municipal Retirement Fund
Schedule of Changes in the Employer's Net Pension Liability/(Asset) - Last Ten Measurement Years
December 31, 2025

2016
Total Pension Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Change of Assumptions
Benefit Payments, Including Refunds
of Member Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning

$

Total Pension Liability - Ending
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Members
Net Investment Income
Benefit Payments, Including Refunds
of Member Contributions
Other (Net Transfer)
Net Change in Plan Fiduciary Net Position
Plan Net Position - Beginning

$

Plan Net Position - Ending
Employer's Net Pension Liability/(Asset)

$

Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability
Covered Payroll

$

Employer's Net Pension Liability/(Asset) as a Percentage of
Covered Payroll

2017

2018

1,005,179
4,621,314
—
540,685
(149,306)

995,922
4,832,242
—
170,440
(2,101,568)

983,308
4,852,620
—
(138,743)
1,869,323

(3,246,994)
2,770,878
62,903,181

(3,484,262)
412,774
65,674,059

(3,753,777)
3,812,731
66,086,833

65,674,059

66,086,833

69,899,564

1,137,869
459,710
3,828,013

1,131,369
462,750
10,300,349

1,199,518
465,332
(3,780,714)

(3,246,994)
393,842
2,572,440
55,599,002

(3,484,262)
(1,386,107)
7,024,099
58,171,442

(3,753,777)
529,567
(5,340,074)
65,195,541

58,171,442

65,195,541

59,855,467

7,502,617

891,292

10,044,097

88.58%

98.65%

85.63%

9,498,079

9,948,746

10,340,678

78.99%

8.96%

97.13%

Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2016 through 2018,
2020 and 2023. Changes in assumptions related to the demographics were made in 2017.

111

2019

2020

2021

2022

2023

2024

2025

1,068,523
4,967,901
—
417,459
—

1,103,491
5,153,333
—
(20,998)
(457,972)

1,040,899
5,272,365
—
1,367,755
—

1,059,063
5,516,624
—
1,085,115
—

1,095,271
5,738,871
—
1,747,909
(72,430)

1,138,671
6,007,660
—
(368,758)
—

1,174,259
6,141,290
—
82,196
—

(3,822,115)
2,631,768
69,899,564

(4,005,254)
1,772,600
72,531,332

(4,204,208)
3,476,811
74,303,932

(4,437,824)
3,222,978
77,780,743

(4,789,037)
3,720,584
81,003,721

(4,858,743)
1,918,830
84,724,305

(5,045,620)
2,352,125
86,643,135

72,531,332

74,303,932

77,780,743

81,003,721

84,724,305

86,643,135

88,995,260

984,434
488,405
11,389,981

1,228,780
493,327
9,989,642

1,211,368
514,145
13,162,378

997,879
552,779
(11,434,224)

799,912
560,687
8,167,251

888,991
589,705
8,027,496

934,453
571,132
13,025,097

(3,822,115)
40,045
9,080,750
59,855,467

(4,005,254)
64,843
7,771,338
68,936,217

(4,204,208)
136,423
10,820,106
76,707,555

(4,437,824)
220,167
(14,101,223)
87,527,661

(4,789,037)
2,494,695
7,233,508
73,426,438

(4,858,743)
(1,793,464)
2,853,985
80,659,946

(5,045,620)
(519,333)
8,965,729
83,513,931

68,936,217

76,707,555

87,527,661

73,426,438

80,659,946

83,513,931

92,479,660

3,595,115

(2,403,623)

(9,746,918)

7,577,283

4,064,359

3,129,204

(3,484,400)

95.04%

103.23%

112.53%

90.65%

95.20%

96.39%

103.92%

10,817,971

10,962,834

11,205,995

11,767,447

12,459,701

13,131,346

12,715,379

33.23%

(21.93%)

(86.98%)

64.39%

32.62%

23.83%

(27.40%)

112

VILLAGE OF WILMETTE, ILLINOIS
Police Pension Fund
Schedule of Changes in the Employer's Net Pension Liability - Last Ten Measurement Years
December 31, 2025

Total Pension Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Change of Assumptions
Benefit Payments, Including Refunds
of Member Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning

2016

2017

2018

1,100,542
4,529,260
—
(453,275)
—

1,151,491
4,697,824
—
137,129
—

1,043,688
4,889,912
—
744,635
1,653,451

(2,727,692)
2,448,835
62,735,854

(3,077,212)
2,909,232
65,184,689

(3,381,115)
4,950,571
68,093,921

65,184,689

68,093,921

73,044,492

1,891,000
449,131
3,231,460

2,023,000
445,506
5,670,917

2,127,000
456,418
(3,311,013)

(2,727,692)
(34,484)
2,809,415
40,094,788

(3,077,212)
(25,794)
5,036,417
42,904,203

(3,381,115)
(12,569)
(4,121,279)
47,940,620

42,904,203

47,940,620

43,819,341

$ 22,280,486

20,153,301

29,225,151

65.82%

70.40%

59.99%

4,539,433

4,363,788

4,540,859

490.82%

461.83%

643.60%

$

Total Pension Liability - Ending
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Members
Net Investment Income
Benefit Payments, Including Refunds
of Member Contributions
Administrative Expenses
Net Change in Plan Fiduciary Net Position
Plan Net Position - Beginning

$

Plan Net Position - Ending
Employer's Net Pension Liability
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability
Covered Payroll

$

Employer's Net Pension Liability as a Percentage of
Covered Payroll

Changes of Assumptions: In Fiscal Year 2025, the change of assumptions was calculated due to a change in the
bond rate assumption.

113

2019

2020

2021

2022

2023

2024

2025

972,492
5,235,690
213,461
630,014
—

1,081,219
5,491,897
—
(1,975,555)
—

1,080,556
5,561,336
—
244,919
(254,785)

1,053,123
5,774,532
—
565,500
(488,833)

983,592
5,982,222
—
2,644,141
—

999,461
6,359,803
—
(2,558,511)
—

972,380
6,356,914
—
2,659,612
—

(3,601,127)
3,450,530
73,044,492

(3,651,865)
945,696
76,495,022

(3,626,383)
3,005,643
77,440,718

(3,701,508)
3,202,814
80,446,361

(4,238,719)
5,371,236
83,649,175

(4,596,914)
203,839
89,020,411

(5,030,121)
4,958,785
89,224,250

76,495,022

77,440,718

80,446,361

83,649,175

89,020,411

89,224,250

94,183,035

2,273,000
470,100
8,743,944

2,492,000
486,717
7,231,664

2,705,000
506,601
6,823,843

2,705,000
666,017
(11,044,860)

2,555,000
511,195
6,988,839

2,600,000
541,471
5,608,680

2,795,000
559,734
11,007,890

(3,601,127)
(28,376)
7,857,541
43,819,341

(3,651,865)
(31,246)
6,527,270
51,676,882

(3,626,383)
(30,770)
6,378,291
58,204,152

(3,701,508)
(42,126)
(11,417,477)
64,582,443

(4,238,719)
(28,514)
5,787,801
53,164,966

(4,596,914)
(32,855)
4,120,382
58,952,767

(5,030,121)
(55,986)
9,276,517
63,073,149

51,676,882

58,204,152

64,582,443

53,164,966

58,952,767

63,073,149

72,349,666

24,818,140

19,236,566

15,863,918

30,484,209

30,067,644

26,151,101

21,833,369

67.56%

75.16%

80.28%

63.56%

66.22%

70.69%

76.82%

4,790,179

4,948,108

5,096,433

5,375,237

5,158,375

5,463,885

5,648,174

518.10%

388.77%

311.27%

567.12%

582.89%

478.62%

386.56%

114

VILLAGE OF WILMETTE, ILLINOIS
Firefighter's Pension Fund
Schedule of Changes in the Employer's Net Pension Liability - Last Ten Measurement Years
December 31, 2025

Total Pension Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual Experience
Change of Assumptions
Benefit Payments, Including Refunds
of Member Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning

2016

2017

2018

1,180,425
5,001,380
—
(1,452,630)
—

1,266,392
5,081,130
—
239,018
—

1,246,034
5,271,850
—
(871,854)
2,309,222

(3,584,863)
1,144,312
69,596,559

(3,845,414)
2,741,126
70,740,871

(4,023,616)
3,931,636
73,481,997

70,740,871

73,481,997

77,413,633

2,422,000
429,767
3,240,709

2,609,000
427,546
5,749,816

2,750,000
427,374
(3,466,296)

(3,584,863)
(76,697)
2,430,916
40,480,899

(3,845,414)
(21,083)
4,919,865
42,911,815

(4,023,616)
(13,400)
(4,325,938)
47,831,680

42,911,815

47,831,680

43,505,742

$ 27,829,056

25,650,317

33,907,891

60.66%

65.09%

56.20%

4,481,012

4,296,430

4,591,448

621.04%

597.01%

738.50%

$

Total Pension Liability - Ending
Plan Fiduciary Net Position
Contributions - Employer
Contributions - Members
Net Investment Income
Benefit Payments, Including Refunds
of Member Contributions
Administrative Expenses
Net Change in Plan Fiduciary Net Position
Plan Net Position - Beginning

$

Plan Net Position - Ending
Employer's Net Pension Liability
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability
Covered Payroll

$

Employer's Net Pension Liability as a Percentage of
Covered Payroll

Changes of Assumptions: In Fiscal Year 2025, the change of assumptions was calculated due to a change in the
bond rate assumption.

115

2019

2020

2021

2022

2023

2024

2025

1,118,682
5,543,638
218,888
(586,615)
—

1,208,748
5,702,602
—
(80,218)
—

1,182,181
5,882,005
—
1,063,785
82,049

1,189,592
6,158,692
—
205,285
—

1,153,620
6,352,174
—
2,685,487
—

1,122,090
6,707,219
—
(166,712)
—

1,152,988
6,866,513
—
(432,368)
(192,718)

(4,136,671)
2,157,922
77,413,633

(4,247,409)
2,583,723
79,571,555

(4,276,100)
3,933,920
82,155,278

(4,662,593)
2,890,976
86,089,198

(5,035,210)
5,156,071
88,980,174

(5,489,949)
2,172,648
94,136,245

(5,502,719)
1,891,696
96,308,893

79,571,555

82,155,278

86,089,198

88,980,174

94,136,245

96,308,893

98,200,589

2,823,000
442,442
8,751,390

2,935,000
458,589
6,981,089

3,376,000
591,823
6,901,253

3,376,000
495,445
(9,196,181)

3,226,000
475,636
7,974,795

3,300,000
487,893
6,523,320

3,416,000
522,473
11,339,911

(4,136,671)
(26,121)
7,854,040
43,505,742

(4,247,409)
(31,057)
6,096,212
51,359,782

(4,412,701)
(58,651)
6,397,724
57,455,994

(4,662,593)
(51,415)
(10,038,744)
63,853,718

(5,035,210)
(35,158)
6,606,063
53,814,974

(5,489,949)
(33,231)
4,788,033
60,421,037

(5,502,719)
(35,238)
9,740,427
65,209,070

51,359,782

57,455,994

63,853,718

53,814,974

60,421,037

65,209,070

74,949,497

28,211,773

24,699,284

22,235,480

35,165,200

33,715,208

31,099,823

23,251,092

64.55%

69.94%

74.17%

60.48%

64.18%

67.71%

76.32%

4,719,208

4,793,064

4,995,704

5,240,032

5,030,524

5,160,159

5,525,891

597.81%

515.31%

445.09%

671.09%

670.21%

602.69%

420.77%

116

VILLAGE OF WILMETTE, ILLINOIS
Police Pension Fund
Schedule of Investment Returns - Last Ten Fiscal Years
December 31, 2025

Fiscal
Year

Annual MoneyWeighted Rate
of Return, Net
of Investment
Expense

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

8.24%
7.72%
(7.47%)
20.22%
14.54%
12.31%
N/A
13.66%
9.59%
17.79%

N/A - Not Available

117

VILLAGE OF WILMETTE, ILLINOIS
Firefighters' Pension Fund
Schedule of Investment Returns - Last Ten Fiscal Years
December 31, 2025

Fiscal
Year

Annual MoneyWeighted Rate
of Return, Net
of Investment
Expense

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

8.23%
7.71%
(7.63%)
20.47%
14.25%
12.75%
(15.79%)
15.36%
10.92%
17.72%

118

VILLAGE OF WILMETTE, ILLINOIS
Retiree Benefit Plan
Schedule of Changes in the Employer's Total OPEB Liability
December 31, 2025

2018
Total OPEB Liability
Service Cost
Interest
Changes in Benefit Terms
Differences Between Expected and Actual
Experience
Change of Assumptions or Other Inputs
Benefit Payments
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning

$

187,043
148,224
—
—
(247,329)
(146,740)
(58,802)
4,194,557

Total OPEB Liability - Ending

4,135,755

Covered-Employee Payroll

$ 18,039,186

Total OPEB Liability as a Percentage of
Covered-Employee Payroll

22.93%

Notes:
This schedule is intended to show information for ten years. Information for additional years will be displayed as
it becomes available.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
Changes of Assumptions. Changes in assumptions related to the discount rate were made in 2018 through 2025.

119

2019

2020

2021

2022

2023

2024

2025

170,297
173,317
—

208,652
155,433
—

246,801
95,854
—

238,529
112,440
—

184,780
230,163
—

204,427
224,644
—

220,348
268,950
—

—
324,353
(159,213)
508,754
4,135,755

(406,933)
368,841
(171,950)
154,043
4,644,509

—
(139,422)
(158,355)
44,878
4,798,552

174,068
104,089
(170,232)
458,894
4,843,430

148,638
—
(296,931)
266,650
5,302,324

(207,779)
820,714
(317,716)
724,290
5,568,974

—
(73,303)
(464,368)
(48,373)
6,293,264

4,644,509

4,798,552

4,843,430

5,302,324

5,568,974

6,293,264

6,244,891

18,717,459

19,045,988

19,640,223

20,854,874

21,597,308

21,645,813

22,708,622

24.81%

25.19%

24.66%

25.42%

25.79%

29.07%

27.50%

120

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Revenues
Taxes
Licenses, Permits and Fees
Intergovernmental
Charges for Services
Fines and Forfeitures
Investment Earnings
Miscellaneous
Total Revenues

$

Expenditures
General Government
Public Safety
Streets and Sanitation
Other Public Works
Public Health
Community Development
Capital Outlay
Debt Service
Lease Retirement
Lease Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses)
Lease Proceeds
Disposal of Capital Assets
Transfers In
Transfers Out

Net Change in Fund Balance

Budgeted Amounts
Original
Final

Actual
Amounts

19,096,500
4,290,500
12,660,955
4,146,700
301,000
1,000,000
1,152,200
42,647,855

19,096,500
4,290,500
12,660,955
4,146,700
301,000
1,000,000
1,152,200
42,647,855

25,468,993
5,615,035
12,156,569
4,335,913
391,098
1,953,743
1,224,645
51,145,996

5,185,364
19,818,320
8,022,830
9,728,484
51,400
2,730,789
1,226,558

5,185,364
20,058,070
8,022,830
9,728,484
51,400
2,730,789
1,226,558

5,817,430
26,422,194
7,559,764
7,207,172
51,400
2,763,565
1,105,748

12,500
—
46,776,245

12,500
—
47,015,995

166,383
14,329
51,107,985

(4,128,390)

(4,368,140)

38,011

—
20,000
1,340,000
(35,000)
1,325,000

—
20,000
1,340,000
(35,000)
1,325,000

586,233
56,548
1,050,000
—
1,692,781

(2,803,390)

(3,043,140)

1,730,792

Fund Balance - Beginning

31,493,142

Fund Balance - Ending

33,223,934

121

OTHER SUPPLEMENTARY INFORMATION
Other supplementary information includes financial statements and schedules not required by the GASB, nor a
part of the basic financial statements, but are presented for purposes of additional analysis.
Such statements and schedules include:
•

Budgetary Comparison Schedules - Major Governmental Funds

•

Combining Statements - Nonmajor Governmental Funds

•

Budgetary Comparison Schedule - Nonmajor Governmental Fund

•

Budgetary Comparison Schedules - Major Enterprise Funds

•

Budgetary Comparison Schedules - Nonmajor Enterprise Fund

•

Combining Statements - Internal Service Funds

•

Budgetary Comparison Schedules - Internal Service Funds

•

Combining Statements - Pension Trust Funds

•

Budgetary Comparison Schedules - Pension Trust Funds

122

INDIVIDUAL FUND DESCRIPTIONS
GENERAL FUND
The General Fund is used to account for all financial resources except those required to be accounted for in
another fund.

SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
fiduciary funds or capital project funds) that are legally restricted to expenditure for specified purposes.
Motor Fuel Tax Fund
The Motor Fuel Tax Fund is used to account funds received from the State of Illinois Motor Fuel Tax to be used
for operating and maintaining local streets and roads.
Fire Insurance Tax Fund
The Fire Insurance Tax Fund is used to account for foreign fire insurance tax receipts held on behalf of retiring
Village firefighters’ to be applied to their retiree health insurance premiums.

DEBT SERVICE FUND
The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general
long-term debt principal and interest.

CAPITAL PROJECTS FUND
The Capital Projects Fund is used to account for all resources used for the acquisition of capital facilities by a
governmental unit except those financed by Proprietary Funds.

ENTERPRISE FUNDS
The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises where the intent is that costs of providing goods or services to the general public on
a continuing basis be financed or recovered primarily through user charges; or where it has been decided that
periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital
maintenance, public policy, management control, accountability or other purpose.

123

INDIVIDUAL FUND DESCRIPTIONS - Continued
ENTERPRISE FUNDS - Continued
Water Fund
The Water Fund is used to account for the provision of water to the residents of the Village. All activities
necessary to provide such services are accounted for in this fund, including, but not limited to, administration,
operations and maintenance, financing and related debt service, billing and collection.
Sewer Fund
The Sewer Fund is used to account for the provision of the sewer system to the residents of the Village. All
activities necessary to provide such services are accounted for in this fund, including, but not limited to,
administration, operations and maintenance, financing and related debt service, billing and collection.
Parking Meter Fund
The Parking Meter Fund is used to account for the provision of parking to the residents of the Village. All
activities necessary to provide such services are accounted for in this fund, including, but not limited to,
administration, operations and maintenance, financing and related debt service, billing and collection.

INTERNAL SERVICE FUNDS
The Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies other governmental unit, or to other governmental units,
on a cost-reimbursement basis.
Municipal Garage Fund
The Municipal Garage Fund is used to account for the activity necessary to operate and maintain the Village’s
automotive fleet. User departments are charged a proportionate share determined by the number and types of
vehicles in each department.
Employee Insurance Fund
The Employee Insurance Fund is used to for account employer provided health and life insurance, employer
flexible benefit contributions, and unemployment compensation. User departments are charged the expense
incurred on behalf of their employees.
Workers’ Compensation Fund
The Workers’ Compensation Fund is used to account for employer workers’ compensation expense. User
departments are charged a proportionate share of this expense determined by the employees in each department.

124

INDIVIDUAL FUND DESCRIPTIONS - Continued
INTERNAL SERVICE FUNDS - Continued
Illinois Municipal Retirement Fund
The Illinois Municipal Retirement Fund is used to account for employer Social Security and Medicare
contributions as well as employer pension contributions to the Illinois Municipal Retirement Fund (the statewide
pension plan for the Village’s full-time employees other than sworn police and fire personnel.) User departments
are charged a proportionate share of this expense determined by the employees in each department.
Section 105 Sick Leave Fund
The Section 105 Sick Leave Fund is used to account for employer Section 105 sick leave expense. User
departments are charged a proportionate share of this expense determined by the employees in each department.

TRUST FUNDS
PENSION TRUST FUNDS
Police Pension Fund
The Police Pension Fund is used to account for the accumulation of resources to be used for retirement annuity
payments to employees on the police force at appropriate amounts and times in the future. The fund does not
account for the administrative costs of the system, which are borne by the General Fund. Resources are
contributed by employees at rates fixed by law and by the Village at amounts determined by an annual actuarial
study.
Firefighters’ Pension Fund
The Firefighters’ Pension Fund is used to account for the accumulation of resources to be used for retirement
annuity payments to employees in the firefighting service at appropriate amounts and times in the future. The
fund does not account for the administrative costs of the system, which are borne by the General Fund.
Resources are contributed by employees at rates fixed by law and by the Village at amounts determined by an
annual actuarial study.

125

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Taxes
Property Taxes
Municipal Sales Tax - Home Rule
Utility Tax
Wireless 911 Tax
Real Estate Transfer Tax
Fuel Use Tax
Hotel Tax
Total Taxes
Licenses, Permits and Fees
Licenses
Vehicle
Taxi/Valet
Animal
Business
Contractor
Licenses - Liquor
Licenses - Totacco
Licenses - Property
Permits
Building
Roof
Demolition
Electric
Plumbing
Right-of Way
Grading
Other
Fees
Inspections
Pavement Degradation Fee
Plan Review
Filing
Permit Penalties

126

Actual
Amounts

$ 11,712,800
3,116,700
1,680,000
612,000
1,320,000
240,000
415,000
19,096,500

11,712,800
3,116,700
1,680,000
612,000
1,320,000
240,000
415,000
19,096,500

17,057,597
3,809,082
1,697,242
556,899
1,702,983
214,536
430,654
25,468,993

1,515,000
—
1,500
82,000
148,000
85,000
—
—

1,515,000
—
1,500
82,000
148,000
85,000
—
—

1,654,180
100
825
83,790
136,320
107,425
650
1,000

1,451,000
11,000
100,000
94,000
50,000
30,000
115,000
77,000

1,451,000
11,000
100,000
94,000
50,000
30,000
115,000
77,000

2,436,987
8,814
104,436
113,446
59,295
28,693
110,493
106,492

270,000
120,000
91,000
20,000
30,000
4,290,500

270,000
120,000
91,000
20,000
30,000
4,290,500

297,843
207,139
94,131
25,446
37,530
5,615,035

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Intergovernmental
Municipal Sales Tax
State Income Tax
Personal Property Replacement Tax
State Grants
Federal Grants
Miscellaneous Grant Revenue
Total Intergovernmental

$

Charges for Services
Refuse Collection Charges
Sales of Yard Waste Bags
Ambulance Transport Charges
Burglar Alarms
Damage to Village Property
Traffic and Parking Study Reimbursement
French Market Services
Shared Services
Park District Personnel Reimbursements
Elevator Inspections
Shore Line Place Services
Health Department Charges
Total Charges for Services
Fines and Forfeitures
Court Fines
Adjudication Collections
Vehicle License and Parking
Animal and Impounding Fees

127

Budgeted Amounts
Original
Final

Actual
Amounts

5,490,300
4,951,900
595,400
986,800
497,140
139,415
12,660,955

5,490,300
4,951,900
595,400
986,800
497,140
139,415
12,660,955

5,575,609
5,080,300
371,886
828,734
219,278
80,762
12,156,569

2,889,600
120,000
923,200
15,000
20,000
35,000
2,900
60,000
25,800
10,800
41,900
2,500
4,146,700

2,889,600
120,000
923,200
15,000
20,000
35,000
2,900
60,000
25,800
10,800
41,900
2,500
4,146,700

3,026,826
113,298
970,765
13,425
37,050
24,430
—
69,179
18,860
17,834
42,546
1,700
4,335,913

35,000
50,000
215,000
1,000
301,000

35,000
50,000
215,000
1,000
301,000

34,920
142,554
212,995
629
391,098

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Revenues - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Investment Earnings
Interest
I.R.M.A. Excess Surplus Investment Earnings
Total Investment Earnings

$

Miscellaneous
Rental Income
Wilmette Park District
3545 Lake Avenue
Cellular Antennae Leases
Cable TV Franchise Fees
Cable PEG Fees
Commercial Waste Collection Franchise Fees
Contribution from Wilmette Historical Society
Donations
Other
Police Seizures
Total Miscellaneous
Total Revenues

128

Budgeted Amounts
Original
Final

Actual
Amounts

1,000,000
—
1,000,000

1,000,000
—
1,000,000

1,431,752
521,991
1,953,743

72,100
2,400
306,000
500,000
25,000
100,000
56,700
50,000
20,000
20,000
1,152,200

72,100
2,400
306,000
500,000
25,000
100,000
56,700
50,000
20,000
20,000
1,152,200

72,133
2,400
311,307
421,571
20,679
101,000
44,866
51,003
199,219
467
1,224,645

42,647,855

42,647,855

51,145,996

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Expenditures - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
General Government
Legislative
Memberships
Professional Services
Annual Audit
Incidentals
Total Legislative

$

Actual
Amounts

19,000
—
5,000
5,000
29,000

19,000
—
5,000
5,000
29,000

18,805
48,000
4,500
708
72,013

General Administration
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
Professional Services
Lease/Purchase - Copier
Pre-employment Exams
Office Supplies
Incidentals
Training
Employee Recognition Program
Newsletters
Publishing Legal Notices
Classified Advertisements
Total General Administration

717,465
—
197,858
6,603
132,370
9,000
5,800
3,000
1,500
20,350
40,000
13,000
1,500
5,000
1,153,446

717,465
—
197,858
6,603
132,370
9,000
5,800
3,000
1,500
20,350
40,000
13,000
1,500
5,000
1,153,446

784,115
248
205,680
6,085
137,124
8,159
1,037
5,419
6,561
11,786
25,338
28,552
35
5,835
1,225,974

Administrative Services
Salaries - Regular
Employee Benefits
Memberships
Professional Services
Geographic Information System
Administrative Adjudication
Contractual Hardware Support
Contractual Software Support
PC Software Subscription
Contractual Internet Expenditures
Telephone Service - Cellular
Computer Communications

303,190
96,932
800
81,550
36,097
7,100
16,020
348,005
126,000
73,020
1,200
47,800

303,190
96,932
800
81,550
36,097
7,100
16,020
348,005
126,000
73,020
1,200
47,800

303,392
93,762
350
53,498
36,434
6,717
18,345
360,815
138,940
77,766
919
43,874

129

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

General Government - Continued
Administrative Services - Continued
Computer Parts
Computer Software
Office Supplies
Automotive
Incidentals
Training
Motor Equipment - Car Laptops
Office Furniture and Equipment
Total Administrative Services

$

Finance Department
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
Professional Services
Lease/Purchase - Copier
Bank Charges
Postage - General Office
Contractual Services
Maintenance of Office Equipment
Telephone - Office Service
Telephone - Maintenance
Telephone - Long Distance
Office Supplies
Supplies Other than Office
Incidentals
Training
Publishing Legal Notices
Total Finance Department

130

Budgeted Amounts
Original
Final

Actual
Amounts

30,600
2,000
9,500
1,729
200
14,720
11,500
72,410
1,280,373

30,600
2,000
9,500
1,729
200
14,720
11,500
72,410
1,280,373

30,290
137
14,935
1,720
87
12,182
11,868
92,358
1,298,389

1,084,666
—
360,235
1,725
40,000
17,000
97,000
53,500
25,000
3,000
17,000
750
100
15,000
10,500
600
6,000
4,500
1,736,576

1,084,666
—
360,235
1,725
40,000
17,000
97,000
53,500
25,000
3,000
17,000
750
100
15,000
10,500
600
6,000
4,500
1,736,576

1,062,034
829
353,878
1,120
23,630
17,126
95,335
69,408
23,793
1,907
10,869
—
—
12,186
8,827
524
531
1,890
1,683,887

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
General Government - Continued
Law Department
Salaries - Regular
Employee Benefits
Memberships
Code Revision service
Special Attorney Fees
On-Line Legal Research Service
Supplies - Legal
Incidentals
Training
Litigation Costs
Total Law Department

$

Actual
Amounts

233,462
46,632
1,960
3,200
51,360
1,565
1,500
150
5,950
1,000
346,779

233,462
46,632
1,960
3,200
51,360
1,565
1,500
150
5,950
1,000
346,779

243,462
47,175
2,002
3,894
80,393
1,611
—
—
5,770
—
384,307

Boards and Commissions
Incidentals
Housing Commission
Environmental & Energy Commission
Historic Preservation Commission
Human Relations Commission
Bicycle Task Force
Total Boards and Commissions

5,000
3,000
10,000
1,200
3,500
2,000
24,700

5,000
3,000
10,000
1,200
3,500
2,000
24,700

—
958
4,324
4,242
7,108
—
16,632

Historical Museum
Salaries - Regular
Employee Benefits
Total Historical Museum

173,148
47,231
220,379

173,148
47,231
220,379

159,695
44,454
204,149

Cable Programming Services
Salaries - Regular
Employee Benefits
Memberships
Maintenance - Office Equipment
Hi-Speed Ethernet Service
Supplies - Office
Supplies - Video

106,457
41,109
195
4,000
5,500
250
2,000

106,457
41,109
195
4,000
5,500
250
2,000

106,457
30,259
225
5,603
2,030
—
953

131

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
General Government - Continued
Cable Programming Services - Continued
Incidentals
Training
Office Space Rent
Office Furniture and Equipment
Total Cable Programming Services

$

Actual
Amounts

300
600
13,200
3,000
176,611

300
600
13,200
3,000
176,611

—
—
16,069
—
161,596

187,500
—
30,000
217,500

187,500
—
30,000
217,500

189,533
381,188
27,009
597,730

—

—

172,753

Total General Government

5,185,364

5,185,364

5,817,430

Public Safety
Fire and Police Commission
Salaries - Regular
Employee Benefits
Professional Services
Total Fire and Police Commission

55,510
22,311
25,000
102,821

55,510
22,311
25,000
102,821

78,254
25,092
61,617
164,963

Police
General Operations
Salaries - Regular
Salaries - Overtime
Employee Benefits
Employer Pension Contribution
Memberships
Professional Services

5,831,118
300,000
1,157,657
—
2,965
—

5,949,868
300,000
1,195,657
—
2,965
—

5,794,534
579,151
1,172,122
2,795,000
2,000
21,785

Insurance
General Liability and Property Insurance
Fixed Premiums
Village Use of Excess IRMA Surplus Reserve
Deductible Payments
Total Insurance
Contingencies
Regular

132

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Public Safety - Continued
Police - Continued
General Operations - Continued
Physical Exams
Contractual Animal Observation
Maintenance - Equipment
Maintenance - Radios
Telephone Services - Cellular
Uniforms
Range Supplies
Supplies other than Office
Community Relations Materials
Automotive
Incidentals
Training
Police Seizure Expenditures
Equitable Sharing Program Grant
Crime Lab Contributions
NIPAS Contribution
Major Crimes Task Force
NIPSTA Contribution
License Plate Reader
C.E.R.F. Contribution
Total General Operations

$

General Services
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
Professional Services
Lease/Purchase - Copier
Maintenance - Office Equipment
Reaccreditation Fees
Professional Services - Police Grant Work
Towing - Contractual
Telephone Services - Cellular
Computer Communications
Uniforms
Office Supplies
133

Budgeted Amounts
Original
Final

Actual
Amounts

24,650
19,850
170,035
55,542
8,300
61,550
24,200
20,050
4,000
273,609
10,600
67,995
20,000
—
44,128
8,955
6,600
7,470
17,500
125,690
8,262,464

24,650
19,850
170,035
55,542
8,300
72,050
24,200
20,050
4,000
273,609
10,600
67,995
20,000
—
44,128
8,955
6,600
7,470
17,500
125,690
8,429,714

20,226
441
26,718
48,777
9,508
81,713
22,759
20,891
3,926
276,760
12,879
75,478
19,102
7,998
44,128
9,279
6,696
6,750
—
—
11,058,621

656,377
300
232,759
485
23,715
6,100
500
5,600
1,500
800
1,700
—
400
8,000

705,785
300
253,351
485
23,715
6,100
500
5,600
1,500
800
1,700
—
400
10,500

675,941
1,205
240,868
619
25,721
8,100
—
4,046
—
1,135
1,498
547
4,297
4,701

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Public Safety - Continued
Police - Continued
General Services - Continued
Supplies Other than Office
Incidentals
Training
Care of Prisoners
Total General Services

$

Public Safety Communications
Salaries - Regular
Salaries - Overtime
Employee Benefits
Professional Services
Contractual Regional Fire Dispatch
Public Safety Dispatch - GPSDC
Software - 911 System
Maintenance - Office Equipment
Maintenance - E-911 System
IWIN Program
Computer Communications
Communications Equipment
Total Public Safety Communications
School Crossing Protection
Salaries - Regular
Employee Benefits
Professional Services
Uniforms
Supplies Other than Office
Total School Crossing Protection
Total Police

134

Actual
Amounts

2,000
300
790
1,500
942,826

2,000
300
790
1,500
1,015,326

1,542
726
995
818
972,759

153,090
—
60,436
—
325,000
697,830
8,476
6,200
5,000
8,000
13,975
475,000
1,753,007

153,090
—
60,436
—
325,000
697,830
8,476
6,200
5,000
8,000
13,975
475,000
1,753,007

163,498
7,565
62,485
119
292,776
697,830
—
—
2,632
6,959
12,926
695,601
1,942,391

311,586
27,672
25,000
1,400
750
366,408

311,586
27,672
25,000
1,400
750
366,408

230,626
21,433
—
123
150
252,332

11,324,705

11,564,455

14,226,103

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Public Safety - Continued
Emergency Fire and Medical Services
Salaries - Regular
Salaries - Overtime
Salaries - Off-Duty Response
Employee Benefits
Employer Pension Contribution
Memberships
Professional Services
Lexipol - Stand Op Procedures
Lease/Purchase - Copier
Physical Exams
Maintenance - Equipment
Maintenance - Radios
Maintenance - Breathing Equipment
Maintenance - Telemetry Equipment
Maintenance - Special Rescue Equipment
Telephone Services - Cellular
Uniforms
Protective Clothing
Supplies - Fire Hose
Supplies - Medical
Supplies - Emergency Equipment
Supplies - Office
Supplies - Other than Office
Materials - Public Education Programming
Automotive
Incidentals
Training
NIPSTA Contribution
MABAS Contribution
C.E.R.F. Contribution
GEMT Transfer
Space Study/Design - Fire
Rent - Commonwealth Edison
Total Emergency Fire and Medical Services

$

Total Public Safety

135

Budgeted Amounts
Original
Final

Actual
Amounts

5,645,589
312,750
10,000
1,272,271
—
5,070
—
24,975
5,000
20,080
15,630
7,000
10,380
8,990
12,000
7,800
34,650
48,510
5,400
21,350
19,290
2,850
24,000
10,750
367,374
1,500
82,900
104,280
6,420
137,810
165,600
—
575
8,390,794

5,645,589
312,750
10,000
1,272,271
—
5,070
—
24,975
5,000
20,080
15,630
7,000
10,380
8,990
12,000
7,800
34,650
48,510
5,400
21,350
19,290
2,850
24,000
10,750
367,374
1,500
82,900
104,280
6,420
137,810
165,600
—
575
8,390,794

5,688,791
580,317
17,623
1,273,953
3,416,000
2,734
27
35,831
7,996
17,206
9,966
3,081
11,835
11,138
9,488
15,100
37,426
64,333
5,388
43,838
26,624
2,260
30,733
9,376
373,040
2,348
84,263
88,914
6,422
—
128,077
27,000
—
12,031,128

19,818,320

20,058,070

26,422,194

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Streets and Sanitation
Streets Department
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
G.P.S. Fleet Management
Lease/Purchase - Copier
Professional Services
Contractual Services
Contractual Snow Removal
J.U.L.I.E. Expenditures
Landscaping and Maintenance of PRW
Reaccreditation Fees
Lease Leaf Packers
Telephone Services - Cellular
Uniforms
Supplies - Miscellaneous Tools and Equipment
Supplies - Office
Supplies - Other than Office
Materials - Traffic Signs
Materials - Salt
Materials - Street Repair and Landscaping
Automotive
Incidentals
Training
NIPSTA Contribution
Leaf Disposal
Hot Asphalt Paver Drag Box
C.E.R.F. Contribution
Total Streets Department

$

136

Budgeted Amounts
Original
Final

Actual
Amounts

1,379,172
93,860
512,562
3,580
6,900
5,000
5,000
48,400
150,945
9,215
344,200
5,500
10,000
3,300
13,975
19,500
3,000
2,000
19,800
138,530
60,760
627,545
3,200
12,100
1,500
267,800
11,200
159,860
3,918,404

1,372,240
161,590
532,944
3,378
6,480
8,382
1,113
49,821
101,613
9,214
185,559
2,738
—
2,876
14,471
20,632
2,423
3,427
33,271
89,372
68,777
636,090
6,568
10,187
1,500
269,152
11,313
—
3,605,131

1,379,172
93,860
512,562
3,580
6,900
5,000
5,000
48,400
150,945
9,215
344,200
5,500
10,000
3,300
13,975
19,500
3,000
2,000
19,800
138,530
60,760
627,545
3,200
12,100
1,500
267,800
11,200
159,860
3,918,404

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final

Actual
Amounts

1,036,386
1,116,108
379,340
212,592
2,550
600
2,747,576

1,036,386
1,116,108
379,340
212,592
2,550
600
2,747,576

1,074,116
1,074,116
346,855
212,199
2,350
—
2,709,636

Maintenance of Trees
Salaries - Regular
Salaries - Overtime
Employee Benefits
Contractual Services
Tree Planting Program
Tree Planting Program - Incentive Program
Contractual Tree Pruning
Emerald Ash Borer - Tree Removals
Telephone Services - Cellular
Uniforms
Materials
Automotive
Training
Total Maintenance of Trees

227,434
8,990
83,129
5,000
91,500
20,000
354,640
9,900
600
1,950
5,600
40,422
1,760
850,925

227,434
8,990
83,129
5,000
91,500
20,000
354,640
9,900
600
1,950
5,600
40,422
1,760
850,925

201,635
4,758
74,650
1,440
85,976
9,000
315,517
8,549
448
1,399
3,569
41,240
1,385
749,566

Street Lighting
Salaries - Regular
Salaries - Overtime
Employee Benefits
Maintenance and Disposal of Bulbs and Ballets
Street Light Pole Painting
Uniforms
Supplies
Supplies - Light Poles and Parts
Commonwealth Edison Leased Lighting

142,102
6,560
51,251
500
72,900
750
30,000
82,900
20,000

142,102
6,560
51,251
500
72,900
750
30,000
82,900
20,000

143,793
3,314
48,497
65
68,290
508
22,428
70,316
22,771

Streets and Sanitation - Continued
Refuse Collection and Disposal
Contractual Refuse Collection
Recycling Collection
Landfill Tipping Fees
Contractual Yard Waste Collection
Yard Waste Supplies
Promotional and Educational
Total Refuse Collection and Disposal

$

137

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Streets and Sanitation - Continued
Street Lighting - Continued
Street Light Power - Village System
Automotive
Training
Total Street Lighting

$

Total Streets and Sanitation
Other Public Works
Village Engineer
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
Professional Services
Lease/Purchase - Copier
Plan Review Services
Plan Review Services - Non-Operating
Maintenance - Office Equipment
Maintenance - Traffic Signals
Sidewalk Replacement Program
Curb Replacement Program
Street and Alley Maintenance Program
Street Patching
Pavement Surface Rejuvenation
Pavement Marking Program
Brick Street Maintenance
Brick Street Renovations
Decorative Brick Repairs
Crack Sealing Program
Traffic Calming Program
Bike Plan Implementation
Glen/Wil/Ridge Bike Plan
Street Resurfacing Program
Asphalt to Brick Street Recon
Old Glenview Road
Skokie/Lake Intersection
Engineering Services - Phase I

138

Actual
Amounts

74,000
24,592
370
505,925

74,000
24,592
370
505,925

91,389
24,060
—
495,431

8,022,830

8,022,830

7,559,764

682,177
500
170,394
3,545
46,000
—
50,000
35,000
1,000
81,200
274,000
68,000
1,270,000
148,000
49,000
60,000
288,000
464,000
15,000
20,000
50,000
200,000
—
1,558,000
533,000
280,290
266,275
590,000

682,177
500
170,394
3,545
46,000
—
50,000
35,000
1,000
81,200
274,000
68,000
1,270,000
148,000
49,000
60,000
288,000
464,000
15,000
20,000
50,000
200,000
—
1,558,000
533,000
280,290
266,275
590,000

695,725
7
167,389
3,889
5,990
7,700
44,525
26,578
—
75,046
276,546
68,253
1,044,809
148,897
32,813
46,466
226,499
368,470
14,219
20,000
43,976
136,735
93,900
1,350,299
431,133
211,045
—
8,334

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Other Public Works - Continued
Village Engineer - Continued
Engineering Services - Road
Engineering Services - Illinois Road
Green Bay Road Engineering Phase I
Hibbard Road Engineering Phase I
Lake Ave Engineering Phase I
Locust Road Improvements
Wilmette Avenue Improvements
Telephone Services - Cellular
Supplies - Office
Supplies - Other than Office
Automotive
Incidentals
Training
Skokie Boulevard Shared Uses Path
Skokie Valley Bike Trail
Total Village Engineer

$

Building and Grounds
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
Contractual Services
Contractual Custodial Services
Heating and Cooling System Repairs
Uniforms
Supplies - Building
Supplies - Grounds
Supplies - Printing
Building Furniture and Repairs
Heating - Gas
Automotive
Incidentals
Training
139

Budgeted Amounts
Original
Final

Actual
Amounts

409,000
110,000
—
—
—
149,390
34,840
1,800
2,000
5,000
10,740
2,000
12,000
932,090
42,500
8,914,741

409,000
110,000
—
—
—
149,390
34,840
1,800
2,000
5,000
10,740
2,000
12,000
932,090
42,500
8,914,741

240,231
76,848
151,272
172,625
87,264
53,641
19,833
1,768
948
4,268
10,320
1,515
8,253
35,681
—
6,413,710

241,542
10,580
99,485
500
103,600
72,000
58,500
2,050
59,300
3,500
3,000
70,500
27,000
14,686
1,500
1,000

241,542
10,580
99,485
500
103,600
72,000
58,500
2,050
59,300
3,500
3,000
70,500
27,000
14,686
1,500
1,000

246,833
14,390
97,490
470
70,430
71,084
83,484
1,107
65,015
2,815
820
50,954
23,340
15,490
2,611
149

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Other Public Works - Continued
Building and Grounds - Continued
Building Improvements
Total Building and Grounds

$

Total Other Public Works
Public Health
Sanitarian Services
Community Development
Community Development
Salaries - Regular
Salaries - Overtime
Employee Benefits
Memberships
Professional Services
Preservation Plan
Historic Resources Survey
Private Property Rat Control
Contractual Planning & Inspection Services
Block Party
Contractual Elevator Inspection Services
Telephone Services - Cellular
Supplies - Office
Supplies - Other than Office
Automotive
Incidentals
Training
Grants
Publishing Legal Notices
Total Community Development
Business Development
Salaries - Regular
Employee Benefits
Memberships
140

Actual
Amounts

45,000
813,743

45,000
813,743

46,980
793,462

9,728,484

9,728,484

7,207,172

51,400

51,400

51,400

1,633,875
500
552,521
4,145
163,850
50,000
45,570
—
6,000
—
10,000
4,860
2,500
1,385
19,218
300
14,300
—
2,000
2,511,024

1,633,875
500
552,521
4,145
163,850
50,000
45,570
—
6,000
—
10,000
4,860
2,500
1,385
19,218
300
14,300
—
2,000
2,511,024

1,609,243
48,508
516,408
2,673
40,970
32,278
39,630
107,200
3,975
27,744
9,315
4,579
1,280
6,019
18,920
713
8,172
1,590
2,513
2,481,730

—
—
22,375

—
—
22,375

52,172
13,413
2,500

VILLAGE OF WILMETTE, ILLINOIS
General Fund
Schedule of Detailed Expenditures - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Community Development - Continued
Business Development - Continued
Business Promotion Activities
Incidentals
Land Acquisition
Economic Incentive Agreement
Total Business Development

$

Actual
Amounts

196,740
650
—
—
219,765

196,740
650
—
—
219,765

193,282
85
4,000
16,383
281,835

2,730,789

2,730,789

2,763,565

666,858
239,700
320,000

666,858
239,700
320,000

228,458
241,720
49,337

—
—

—
—

294,534
291,699

1,226,558

1,226,558

1,105,748

—
12,500
—

—
12,500
—

153,883
12,500
14,329

Total Debt Service

12,500

12,500

180,712

Total Expenditures

46,776,245

47,015,995

51,107,985

Total Community Development
Capital Outlay
C.E.R.F Program
Public Works Vehicles
Police Vehicles
Fire Vehicles
Lease and SBITAS
Lease Outlay
SBITAS Outlay
Total Capital Outlay
Debt Service
Lease Principal Retirement
Fire Truck Loan Principal Retirement
Lease Interest

141

VILLAGE OF WILMETTE, ILLINOIS
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Revenues
Taxes
Property Taxes

Actual
Amounts

$ 3,617,700

3,617,700

3,543,130

Expenditures
Debt Service
Principal Retirement
Interest and Fiscal Charges
Total Expenditures

3,225,000
425,000
3,650,000

3,225,000
425,000
3,650,000

3,225,000
423,493
3,648,493

Net Change in Fund Balance

(32,300)

(32,300)

(105,363)

Fund Balance - Beginning

73,749

Fund Balance - Ending

(31,614)

142

VILLAGE OF WILMETTE, ILLINOIS
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Revenues
Investment Earnings

$

Actual
Amounts

—

—

46,390

Expenditures
Capital Projects
Street Resurfacing Program
Space Study/Design - Police
Total Expenditures

843,900
1,400,000
2,243,900

843,900
1,400,000
2,243,900

—
2,025,841
2,025,841

Net Change in Fund Balance

(2,243,900)

(2,243,900)

(1,979,451)

Fund Balance - Beginning

733,652

Fund Balance - Ending

(1,245,799)

143

VILLAGE OF WILMETTE, ILLINOIS
Nonmajor Governmental - Special Revenue Funds
Combining Balance Sheet
December 31, 2025

Motor
Fuel
Tax

Fire
Insurance
Tax

Totals

402,644

414,841

817,485

1,104
114,045

—
—

1,104
114,045

517,793

414,841

932,634

70,093

—

70,093

Restricted

447,700

414,841

862,541

Total Liabilities and Fund Balances

517,793

414,841

932,634

ASSETS
Cash and Investments
Receivables - Net of Allowances
Accounts
Due from Other Governments

$

Total Assets
LIABILITIES
Accounts Payable
FUND BALANCES

144

VILLAGE OF WILMETTE, ILLINOIS
Nonmajor Governmental - Special Revenue Funds
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended December 31, 2025

Revenues
Taxes
Foreign Fire Insurance Tax
Intergovernmental
Investment Earnings
Total Revenues

$

Motor
Fuel
Tax

Fire
Insurance
Tax

Totals

—
1,286,051
27,435
1,313,486

136,855
—
19,626
156,481

136,855
1,286,051
47,061
1,469,967

Expenditures
Public Safety
Employee Benefits
Bank Charges
Capital Outlay
Road Resurfacing Improvements
Total Expenditures

—
—

206,076
34

206,076
34

1,400,762
1,400,762

—
206,110

1,400,762
1,606,872

Net Change in Fund Balances

(87,276)

(49,629)

(136,905)

Fund Balances - Beginning

534,976

464,470

999,446

Fund Balances - Ending

447,700

414,841

862,541

145

VILLAGE OF WILMETTE, ILLINOIS
Motor Fuel Tax - Special Revenue Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final

Actual
Amounts

1,271,880
30,000
1,301,880

1,271,880
30,000
1,301,880

1,286,051
27,435
1,313,486

Expenditures
Capital Outlay
Road Resurfacing Improvements

1,400,000

1,400,000

1,400,762

Net Change in Fund Balance

(98,120)

(98,120)

(87,276)

Revenues
Intergovernmental
Motor Fuel Tax Allotments
Investment Earnings
Total Revenues

$

Fund Balance - Beginning

534,976

Fund Balance - Ending

447,700

146

VILLAGE OF WILMETTE, ILLINOIS

Water - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operating Revenues
Charges for Services
Water Sales
Residential Water Sales
Residential
Other Water Sales
Wholesale Water Sales
Village of Glenview
Illinois American Water Company
Village of Golf
North Main
Kenilworth
Other
Total Operating Revenues

$

Actual
Amounts

3,211,900
—

3,211,900
—

3,264,849
811

3,946,670
1,041,450
36,170
1,425,960
218,070
170,000
10,050,220

3,946,670
1,041,450
36,170
1,425,960
218,070
170,000
10,050,220

4,113,242
1,066,035
48,084
1,458,155
351,367
670,323
10,972,866

Operating Expenses
Administration
General
Administrative
Operations
Water Plant Operations
Distribution
Meter and Reservoir Maintenance
Depreciation and Amortization
Total Operating Expenses

212,322
802,834

212,322
802,834

203,943
798,308

4,018,517
1,864,161
369,830
—
7,267,664

4,018,517
1,864,161
369,830
—
7,267,664

3,739,045
1,633,049
390,440
1,656,241
8,421,026

Operating Income

2,782,556

2,782,556

2,551,840

2,700,000
725,000
380,000
(371,445)
3,433,555

2,700,000
725,000
380,000
(371,445)
3,433,555

—
552,837
845,582
(367,412)
1,031,007

Income Before Transfers

6,216,111

6,216,111

3,582,847

Transfers In
Transfers Out

—
(1,340,000)
(1,340,000)

—
(1,340,000)
(1,340,000)

2,688,968
(1,050,000)
1,638,968

Change in Net Position

4,876,111

4,876,111

5,221,815

Nonoperating Revenues (Expenses)
Debt Issuance
ARPA Grant
Investment Earnings
Interest Expense

Net Position - Beginning

37,368,012

Net Position - Ending

42,589,827

147

VILLAGE OF WILMETTE, ILLINOIS
Water - Enterprise Fund
Schedule of Operating Expenses - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Administration
General
Salaries - Regular
Salaries - Overtime
Employee Benefits
Annual Audit
Bank Charges
Postage
Contractual Services
Supplies - Office - Administrative
Supplies - Office - Water Plant
Incidentals
Training
Total General

$

Administrative
Salaries - Regular
Employee Benefits
OPEB Expense
Memberships
Telephone - Regular Service
Telephone - Maintenance
Telephone - Cellular
Supplies - Building
Building Furniture and Repairs
Training
General Liability and Property Insurance
Total Administrative
Operations
Water Plant Operations
Salaries - Regular
Salaries - Overtime
Employee Benefits
Professional Services - SCADA System Maintenance
Contractual Services

148

Actual
Amounts

62,025
500
16,797
20,000
70,000
30,000
5,000
3,000
2,700
300
2,000
212,322

62,025
500
16,797
20,000
70,000
30,000
5,000
3,000
2,700
300
2,000
212,322

75,993
179
17,649
16,500
64,609
22,894
4,498
—
1,589
32
—
203,943

477,717
142,347
—
2,960
30,600
1,500
2,760
8,000
7,500
4,450
125,000
802,834

477,717
142,347
—
2,960
30,600
1,500
2,760
8,000
7,500
4,450
125,000
802,834

495,942
140,379
4,950
2,278
7,806
487
1,859
8,063
8,940
2,604
125,000
798,308

1,827,384
35,725
742,247
3,000
38,000

1,827,384
35,725
742,247
3,000
38,000

1,684,042
53,505
694,104
—
52,934

VILLAGE OF WILMETTE, ILLINOIS
Water - Enterprise Fund
Schedule of Operating Expenses - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final

Actual
Amounts

11,000
34,000
1,900
460
6,800
32,000
1,000
11,800
40,500
650,000
50,000
334,990
12,711
1,000
50,000
30,000
60,000
—
100,000
—
4,000
4,078,517

11,000
34,000
1,900
460
6,800
32,000
1,000
11,800
40,500
650,000
50,000
334,990
12,711
1,000
50,000
30,000
60,000
—
100,000
—
4,000
4,078,517

10,860
10,073
2,177
—
5,975
31,893
1,628
12,660
44,776
550,963
30,980
391,935
12,040
3,364
45,582
29,138
58,960
16,098
44,839
7,024
2,455
3,798,005

Less Nonoperating Items
Capital Outlay
Total Water Plant Operations

(60,000)
4,018,517

(60,000)
4,018,517

(58,960)
3,739,045

Distribution
Salaries - Regular
Salaries - Overtime
Employee Benefits
Geographic Information System
Contractual Services
Corrosion Control
Transmission Main Repair
Maintenance - Distribution System
Telephone Service - Cellular
Uniforms

514,759
37,600
233,597
36,097
126,800
110,000
250,000
32,400
4,700
5,850

514,759
37,600
233,597
36,097
126,800
110,000
250,000
32,400
4,700
5,850

512,606
30,080
214,395
36,302
158,660
24,704
46,570
237,608
4,101
5,003

Operations - Continued
Water Plant Operations - Continued
Contractual Custodial Services
Maintenance of Equipment
Telephone - Cellular
Computer Communications Expense
Uniforms
Supplies
Supplies - Computer Parts
Supplies - Laboratory
Equipment Repair Materials
Power
Heating Gas
Chemicals
Automotive
Incidentals
Water Reclamation District User Charges
Filter Replacement
High Lift Pump Rebuild
Water System - Hydraulic Study
Water Study - PFAS
Copier
Laboratory Equipment

$

149

VILLAGE OF WILMETTE, ILLINOIS
Water - Enterprise Fund
Schedule of Operating Expenses - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Operations - Continued
Distribution - Continued
Supplies - Miscellaneous Tools and Equipment
Materials
Replacement Fire Hydrants
Automotive
Incidentals
Training
Fire Hydrant Painting
Water Facility Plan
Valve Installation
Water Main Replacement Program
Small Dump Truck
Large Dump Truck
Vehicles - Other
Lead Service Line Replacement
Water Mains

$

Less Nonoperating Items
Capital Outlay
Total Distribution
Meter and Reservoir Maintenance
Salaries - Regular
Salaries - Overtime
Employee Benefits
Contractual Services
Maintenance - Reservoir/Pumping Station
Maintenance - Standpipe
Uniforms
Supplies
Supplies - Reservoir
Water Meters - Cost of Sales
Water Meters - Repair Parts
Water Meter Replacement Program

150

Budgeted Amounts
Original
Final

Actual
Amounts

9,000
116,880
46,600
145,278
1,500
7,300
29,800
50,000
106,000
1,380,000
54,000
—
96,000
688,500
19,500
4,102,161

9,000
116,880
46,600
145,278
1,500
7,300
29,800
50,000
106,000
1,380,000
54,000
—
96,000
688,500
19,500
4,102,161

33,561
138,529
47,935
147,810
1,164
5,453
34,407
—
85,686
1,395,445
27,641
89,814
88,968
80,857
12,985
3,460,284

(2,238,000)
1,864,161

(2,238,000)
1,864,161

(1,827,235)
1,633,049

184,469
625
57,176
13,800
3,500
6,900
700
2,600
4,000
20,000
2,200
55,000

184,469
625
57,176
13,800
3,500
6,900
700
2,600
4,000
20,000
2,200
55,000

186,973
—
57,084
10,494
915
6,600
726
2,602
3,043
31,182
2,909
68,958

VILLAGE OF WILMETTE, ILLINOIS
Water - Enterprise Fund
Schedule of Operating Expenses - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operations - Continued
Meter and Reservoir Maintenance - Continued
Water Meter AMR Program
Automotive
Training
Rent Antennae
Total Meter and Reservoir Maintenance

$

Capital Outlay
Water Plant Treatment Process Improvement
Water Plant Electrical Improvements
Water Plant Water Intake
Water Mains
Automatic Meter Reading Upgrade
NonGAAP Activity
Plus Prior Year Encumbrances
Locust Water Main Replacement
Less Nonoperating Items
Capital Outlay
Total Capital Outlay
Debt Service
Principal Retirement
Interest Expense & Fiscal Charges
Bond Registrar Fees
Less Nonoperating Items
Debt Service
Total Debt Service
Depreciation and Amortization
Total Operating Expenses

151

Actual
Amounts

5,000
13,560
300
—
369,830

5,000
13,560
300
—
369,830

—
13,750
—
5,204
390,440

639,000
625,000
100,000
—
2,600,000
3,964,000

639,000
625,000
100,000
—
2,600,000
3,964,000

71,377
845,583
72,567
171,226
1,752,977
2,913,730

—

—

52,900

(3,964,000)
—

(3,964,000)
—

(2,966,630)
—

999,500
368,445
3,000
1,370,945

999,500
368,445
3,000
1,370,945

999,472
367,412
—
1,366,884

(1,370,945)
—

(1,370,945)
—

(1,366,884)
—

—

—

1,656,241

7,267,664

7,267,664

8,421,026

VILLAGE OF WILMETTE, ILLINOIS
Sewer - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final

Actual
Amounts

7,201,805

7,201,805

7,209,833

Operating Expenses
Operations
Maintenance of Sewers
Storm Water Pumping Station
Depreciation and Amortization
Total Operating Expenses

1,847,821
261,055
—
2,108,876

1,847,821
261,055
—
2,108,876

1,834,732
187,286
2,054,332
4,076,350

Operating Income

5,092,929

5,092,929

3,133,483

2,465,000
100,000
(2,593,460)
(28,460)

2,465,000
100,000
(2,593,460)
(28,460)

—
25,389
(2,580,266)
(2,554,877)

5,064,469

5,064,469

578,606

—

—

(2,688,968)

5,064,469

5,064,469

(2,110,362)

Operating Revenues
Charges for Services
Sewer Charges

$

Nonoperating Revenues (Expenses)
Debt Issuance
Investment Earnings
Interest Expense

Income Before Transfers
Transfers Out
Change in Net Position
Net Position - Beginning

39,066,606

Net Position - Ending

36,956,244

152

VILLAGE OF WILMETTE, ILLINOIS
Sewer - Enterprise Fund
Scheduling of Operating Expenses - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operations
Maintenance of Sewers
Salaries - Regular
Salaries - Overtime
Employee Benefits
OPEB Expense
Professional Services
Geographic Information System
Contractual Services
Contractual Sewer Maintenance
Sewer Flow Monitoring
N.P.D.E.S. Phase II
Telephone Service - Cellular
Uniforms
Supplies - Miscellaneous Tools and Equipment
Materials
Automotive
Incidentals
Training
Rain Ready Program
Sewer Main Repairs
Small Dump Truck
Large Dump Truck
Vehicles - Other

$

Less Nonoperating Items
Capital Outlay
Total Maintenance of Sewers
Storm Water Pumping Station
Salaries - Regular
Salaries - Overtime
Employee Benefits
Contractual Services
Clean Out SWPS Sump
Pump Renovations
Maintenance - Equipment
Supplies
Supplies - Outfall Control

153

Actual
Amounts

695,740
10,900
280,256
—
25,800
36,097
91,700
451,500
—
6,000
5,600
5,650
7,000
45,300
145,278
1,500
9,500
30,000
424,000
54,000
—
96,000
2,421,821

695,740
10,900
280,256
—
25,800
36,097
91,700
451,500
—
6,000
5,600
5,650
7,000
45,300
145,278
1,500
9,500
30,000
424,000
54,000
—
96,000
2,421,821

711,330
9,267
262,466
7,114
5,327
36,434
80,907
450,670
6,362
6,000
4,101
4,903
21,392
40,369
147,810
1,025
6,486
27,353
258,042
27,641
89,814
88,968
2,293,781

(574,000)
1,847,821

(574,000)
1,847,821

(459,049)
1,834,732

76,720
13,000
33,585
2,800
60,000
60,000
3,750
3,000
500

76,720
13,000
33,585
2,800
60,000
60,000
3,750
3,000
500

79,036
14,813
34,400
20,543
—
—
7,310
2,442
—

VILLAGE OF WILMETTE, ILLINOIS
Sewer - Enterprise Fund
Scheduling of Operating Expenses - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operations - Continued
Storm Water Pumping Station - Continued
Power
Heating Gas

$

Less Nonoperating Items
Capital Outlay
Total Storm Water Pumping Station
Capital Outlay
Electrical Improvements
Sewer Lining and Rehabilitation
Storm Sewers

Less Nonoperating Items
Capital Outlay
Total Capital Outlay
Debt Service
Principal Retirement
Interest Expense
Bond Registrar Fees
Less Nonoperating Items
Debt Service
Total Debt Service
Depreciation and Amortization
Total Operating Expenses

154

Actual
Amounts

60,700
7,000
321,055

60,700
7,000
321,055

43,012
5,778
207,334

(60,000)
261,055

(60,000)
261,055

(20,048)
187,286

586,000
1,640,000
240,000
2,466,000

586,000
1,640,000
240,000
2,466,000

349,327
563,872
50,509
963,708

(2,466,000)
—

(2,466,000)
—

(963,708)
—

1,614,445
2,591,460
2,000
4,207,905

1,614,445
2,591,460
2,000
4,207,905

1,739,449
2,579,066
1,200
4,319,715

(4,207,905)
—

(4,207,905)
—

(4,319,715)
—

—

—

2,054,332

2,108,876

2,108,876

4,076,350

VILLAGE OF WILMETTE, ILLINOIS
Parking Meter - Nonmajor Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operating Revenues
Charges for Services
Parking Fees

Actual
Amounts

334,900

334,900

386,059

Operating Expenses
Operations
Central Business District
CTA Station
Burmeister Parking Facility
Depreciation
Total Operating Expenses

206,162
108,038
50,020
—
364,220

206,162
108,038
50,020
—
364,220

191,662
117,731
24,912
132,371
466,676

(Loss) Before Transfers

(29,320)

(29,320)

(80,617)

Transfers In

35,000

35,000

—

Change in Net Position

5,680

5,680

(80,617)

$

Net Position - Beginning

3,643,759

Net Position - Ending

3,563,142

155

VILLAGE OF WILMETTE, ILLINOIS
Parking Meter - Nonmajor Enterprise Fund
Schedule of Operating Revenues - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operating Revenues
Charges for Services
Central Business District
Parking Meter Revenue
Permit Fees
METRA Station Rent
Total Central Business District

$

Actual
Amounts

180,000
43,700
3,000
226,700

180,000
43,700
3,000
226,700

197,933
47,175
3,400
248,508

CTA Station
Commuter Daily Drop Box
Commuter Permit Fees
Merchant Permit Fees
Residential Permit Fees
Total CTA Station

70,000
10,000
4,200
4,000
88,200

70,000
10,000
4,200
4,000
88,200

103,294
11,280
2,970
14,756
132,300

Burmeister Parking Facility
Permit Fees

20,000

20,000

5,251

Total Operating Revenues

334,900

334,900

386,059

156

VILLAGE OF WILMETTE, ILLINOIS
Parking Meter - Nonmajor Enterprise Fund
Schedule of Operating Expenses - Budget and Actual
For the Fiscal Year Ended December 31, 2025

Budgeted Amounts
Original
Final
Operations
Central Business District
Salaries - Regular
Salaries - Overtime
Employee Benefits
OPEB Expense
Bank Charges
Contractual Services - Railroad Property
Contractual Snow Plowing
Building Supplies - Railroad Property
Grounds Supplies - Village Property
Grounds Supplies - Railroad Property
Power - METRA Station
Lighting
Heating Gas - Railroad Property
Parking Meter Parts - Village Property
Parking Meter Parts - Railroad Property
Rent - Commuter Lot
Rent - Poplar Drive Lots
Rent - St. Augustine Lot
Total Central Business District

$

CTA Station
Salaries - Regular
Salaries - Overtime
Employee Benefits
Bank Charges
Contractual Services
Contractual Grounds Maintenance
Contractual Snow Plowing
Materials
Rent - CTA
Total CTA Station

157

Actual
Amounts

41,969
560
16,198
—
36,000
33,500
30,535
1,700
4,000
2,000
6,000
4,000
2,600
400
1,500
20,000
2,800
2,400
206,162

41,969
560
16,198
—
36,000
33,500
30,535
1,700
4,000
2,000
6,000
4,000
2,600
400
1,500
20,000
2,800
2,400
206,162

41,019
764
15,018
(1,137)
44,178
29,401
17,620
683
2,846
1,995
6,331
1,992
1,754
—
720
21,746
4,907
1,825
191,662

27,775
2,250
13,833
7,000
7,565
2,750
18,345
3,520
25,000
108,038

27,775
2,250
13,833
7,000
7,565
2,750
18,345
3,520
25,000
108,038

27,775
—
13,291
11,144
8,300
2,662
10,483
2,669
41,407
117,731

VILLAGE OF WILMETTE, ILLINOIS
Parking Meter - Nonmajor Enterprise Fund
Schedule of Operating Expenses - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2025

Original
Operations - Continued
Burmeister Parking Facility
Contractual Services
Contractual Snow Plowing
Materials
Lighting
Infrastructure - Parking Lots

$

Less Nonoperating Items
Capital Outlay
Total Burmeister Parking Facility
Depreciation
Total Operating Expenses

158

Final

Amounts

8,030
2,390
500
4,100
35,000
50,020

8,030
2,390
500
4,100
35,000
50,020

6,013
1,228
12,277
5,394
28,951
53,863

—
50,020

—
50,020

(28,951)
24,912

—

—

132,371

364,220

364,220

466,676

VILLAGE OF WILMETTE, ILLINOIS
Internal Service Funds
Combining Statement of Net Position
December 31, 2025

Municipal
Garage
ASSETS
Current Assets
Cash and Investments
Receivables - Net of Allowances
Accounts
Prepaids
Total Assets

$

—
—
—
—

LIABILITIES
Current Liabilities
Accounts Payable
Deposits Payable
Retiree Benefits Payable
Due to Other Funds
Total Liabilities

—
—
—
—
—
NET POSITION

Unrestricted

—

159

Employee
Insurance

Workers'
Compensation

Illinois
Municipal
Retirement

260,267

—

5,589

2,102,502

2,368,358

—
3,268
263,535

12,241
—
12,241

—
—
5,589

13,618
10,686
2,126,806

25,859
13,954
2,408,171

263,535
—
—
—
263,535

3,388
—
—
8,853
12,241

5,589
—
—
—
5,589

44,618
38,916
1,843,858
—
1,927,392

317,130
38,916
1,843,858
8,853
2,208,757

—

—

—

199,414

199,414

160

Section
Sick Leave

Totals

VILLAGE OF WILMETTE, ILLINOIS
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position
For the Fiscal Year Ended December 31, 2025

Municipal
Garage
Operating Revenues
Interfund Services

$ 1,756,562

Operating Expenses
Operating Expenses

1,756,562

Operating Income (Loss)

—

Nonoperating Revenues
Investment Earnings

—

Change in Net Position

—

Net Position - Beginning

—

Net Position - Ending

—

161

Employee
Insurance

Workers'
Compensation

Illinois
Municipal
Retirement

4,081,289

301,681

2,066,553

257,070

8,463,155

4,081,289

301,681

2,066,553

306,428

8,512,513

—

—

—

(49,358)

(49,358)

—

—

—

91,181

91,181

—

—

—

41,823

41,823

—

—

—

157,591

157,591

—

—

—

199,414

199,414

162

Section 105
Sick Leave

Totals

VILLAGE OF WILMETTE, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2025

Municipal
Garage
Cash Flows from Operating Activities
Receipts from Interfund Services
Payments to Employees
Payments to Suppliers

$ 1,756,562
(709,591)
(1,046,97
—

Cash Flows from Investing Activities
Investment Earnings

—

Net Change in Cash and Cash Equivalents

—

Cash and Cash Equivalents - Beginning

—

Cash and Cash Equivalents - Ending

—

Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income (Loss)
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Changes in Assets and Liabilities
(Increase) Decrease in Current Assets
Increase (Decrease) in Current Liabilities

—

—
—

Net Cash Provided by Operating Activities

—

163

Employee
Insurance

Workers'
Compensation

Illinois
Municipal
Retirement

4,078,021
(142,710)
(3,911,564)
23,747

301,403
—
(301,403)
—

2,066,553
—
(2,060,964)
5,589

253,183
—
(217,629)
35,554

8,455,722
(852,301)
(7,538,531)
64,890

—

—

—

91,181

91,181

23,747

—

5,589

126,735

156,071

236,520

—

—

1,975,767

2,212,287

260,267

—

5,589

2,102,502

2,368,358

—

—

—

(49,358)

(49,358)

(3,268)
27,015

(278)
278

—
5,589

(3,887)
88,799

(7,433)
121,681

23,747

—

5,589

35,554

64,890

164

Section 105
Sick Leave

Totals

VILLAGE OF WILMETTE, ILLINOIS
Municipal Garage - Internal Service Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended Decembe