FY25 GFOA Budget - Flipbook - Page 166
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APPENDIX
In addition to liabilities, the statement of net position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element
represents an acquisition of net position that applies to a future period(s) and will not be
recognized as an inflow of resources, or revenues, until that time. A deferred inflow of
resources dealing with pension is reported for the differences between expected and actual
experience, the net difference between projected and actual earnings on pension
investments, and changes of assumptions.
Long-Term Liabilities
Long-term debt is recognized as a liability of a governmental fund when due. For other
long-term obligations, only that portion expected to be financed from expendable available
financial resources is reported as a fund liability of a governmental fund. Long-term
liabilities expected to be financed from proprietary fund operations, when applicable, are
accounted for in those funds.
Debt service/Debt limits – The District enters into debt transactions to finance additions of
machinery, equipment, and major improvements to fire facilities. An example of this
includes the purchase of two new fire engines in FY20. Before debt can be incurred by the
District, it must (1) be approved by the District’s Board of Trustees and (2) be within the
District’s defined debt limit. This debt limit is 5.75% of the District’s current EAV.
Presently, the District does not have deferred charges on refunding debt, and as of the
District’s most recent audit (balance taken 12/31/2023), the District’s debt balance was
$592,816. Through regular payments made utilizing a payment schedule, this number
continued to decrease in FY24. Another evaluation of the District’s debt service will be
made during the FY24 audit. It should be noted that debt service for the purchase of 2 fire
engines (FY20) will be fully complete in FY25, and bond payments to the Village of Bartlett for
the financing of Station 3 will be fully complete in FY26. This marks the end of two significant
recurring payments.
Bond ratings: Long-Term Municipal Bond Rate as of District’s most recent audit
(2023)—4.05% with an average AA rating.
Fund Balances
In the fund financial statements, governmental funds report aggregate amounts for five
classifications of fund balances based on the constraints imposed on the use of these
resources.
Non-spendable fund balance - The non-spendable fund balance classification includes
amounts that cannot be spent because they are either (a) not in spendable form - prepaid
items or inventories; or (b) legally or contractually required to be maintained intact. The
spendable portion of the fund balance comprises the remaining four classifications:
restricted, committed, assigned, and unassigned.
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