Fiduciary Funds Statement of Fiduciary Net Position

Long-Term Financial Planning. The 2021 work plan developed in conjunction with the Strategic Planning process identified a number of initiatives relating to financial long-term planning. For 2021, long-term financial objectives included:

 Funding of operations in the General Fund and Utility Fund through the sole use of operating revenues.  Establishing a surcharge to cover the cost of debt associated with the White Pines water main replacement project.  Updating the Village’s 5-year Community Investment Plan.  Developing new and exhaustive equipment replacement schedules to establish long-term plans that will ensure long-term viability of assets will be maintained.  Continuing to moderate the burden of property tax for residents and businesses, creating new alternative revenue sources by capitalizing on the current geographical assets and economy.  Continuing to be recognized with the GFOA Certificate of Achievement for Excellence in

Financial Reporting.  Implementing the comprehensive Economic Development Strategy Plan through the Think

Bensenville campaign.  Establishing sinking funds for large balloon payments on long-term debt.  Developing strategies to decrease the Village’s debt obligations through refinancing opportunities and leveraging funds from outside agencies for capital projects.

Village Financial Policies. The Village has adopted a budget and financial policy, which amongst other things, serves to set guidelines for budgeting and fund balance reserves. As provided within the policy, the annual budget serves as the foundation for the Village’s financial plan and organizational strategy and strives to be balanced in nature (i.e., expenditures planned do not exceed revenues received.) The budget is prepared by fund, department, and program. The Village Manager may make transfers of appropriations within a fund; however, the Village Board must approve any new spending authority that cannot be accomplished through the budget transfer authority. The budget to actual comparison for the General Fund is included in the Supplementary Information section of this report.

The fund balance reserve policy sets a minimum of twenty-five percent (25%) of annual operating expenditures as an Unassigned Balance for operating funds. For capital funds, the policy sets a minimum of fifty percent (50%) of annual operating revenues allocated to the fund as assigned for future improvements. The Village currently maintains more than these required balances in the respective funds. Cash Management Policies and Practices. The Village’s Investment Policy, adopted in 2011, ensures that the Village invests surplus funds in a way that minimizes risk while ensuring the best possible return. The policy is in compliance with Federal and State laws and adheres to