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HomeMy WebLinkAbout07132022 City Council Packet ext(1)5 5 W . T O M P K I N S S T R E E T G A L E S B U R G , I L 6 1 4 0 1 W W W .C I .G A L E S B U R G .I L .U S City Council Agenda July 18, 2022 City Council Meeting Agenda City of Galesburg, Illinois City Council Chambers July 18, 2022 Galesburg City Council meetings are streamed live on the City’s website and Comcast channel 7. Executive Session 5:15 p.m. Executive Session Convene into closed door Executive Session for the purpose of discussing: A. Property Acquisition, 5 ILCS 120/2 (c)(5) 5:30 p.m. Roll Call Pledge of Allegiance Invocation Approve Minutes from July 5, 2022 Presentation Fiscal Year 2021 Audit Presentation by Baker Tilly Open Bids Sale of City Owned Properties Presentation Blue Ribbon Award Consent Agenda #2022-14 22-2038 Resolution Submittal of a Public Transportation Capital Assistance Grant 22-2039 Resolution TIF transfer from TIF 2 to TIF 4 for the expansion of Parking Lot D, located at 125 S. Seminary Street 22-4065 Approve Pegasus Manufacturing, Inc. Subordination Agreement 22-5010 Receive The annual comprehensive financial report for fiscal year ending December 31, 2021 22-8013 Bills and Advance Checks Approval and warrants drawn in payment of same Passage of Ordinances and Resolutions 22-1021 Ordinance Amendment to Section 152.119 High Tunnel Structures (Final Reading) 22-1022 Ordinance Establishing the Airport Advisory Commission (First Reading) 22-1023 Ordinance Allowing UTVs and golf carts on city streets (First Reading) 22-2040 Resolution Acceptance of property donation - 359 S. Henderson Street 22-2041 Resolution Agreement with Discovery Depot 22-2042 Resolution Agreement with Galesburg Visitor and Tourism Bureau 22-2043 Resolution Purchase of 518 W. South Street Bids, Petitions and Communications 22-3024 Bid Replace PSB SAN 22-3025 Bid Seminary & Mulberry Parking Lot Reconstruction 22-3026 Bid South Street Storm Sewer Reconstruction Public Comment City Manager’s Report A. July TAC Report Miscellaneous Business (Agreements, Approvals, Etc.) 22-4066 Approve Service contract with Carl Sandburg College 22-4067 Approve Amended 2022 Salary Schedule 22-4068 Approve Annual maintenance agreement with ProPhoenix for GPD software Town Business 22-9016 Bills Closing Comments Adjournment CITY MANAGER’S OFFICE Operating Under Council – Manager Government Since 1957 ___________________________________________________________________________________________________________________________________________________________________________________________ Page 1 of 5 CITY COUNCIL MEETING City Manager’s Report July 18, 2022 CONSENT AGENDA #2022-13 Item 22-2038 Submittal of Public Transportation Capital Assistance Grant Staff recommends approval of a resolution authorizing submittal of an application for the Rebuild Illinois Transit Capital Grant Program under the Illinois Department of Transportation. The Rebuild Illinois Transit Capital Grant program provides 100% funding for all approved proposals. The City of Galesburg Public Transportation Division is proposing to submit requests for nine projects. Item 22-2039 TIF Transfer Staff recommends approval of a resolution authorizing the transfer of $150,000 from TIF II to TIF IV. These funds will be utilized to cover expenses related to the expansion of Parking Lot D, located at 125 S. Seminary Street. Item 22-4065 Pegasus Manufacturing, Inc. Subordination Agreement Staff recommends approval of a Subordination Agreement that subordinates the City’s debt from loans made to Pegasus Manufacturing to that of Midwest Bank. In 2017, the City of Galesburg made four loans to Pegasus Manufacturing, Inc. All loans are current and in good standing, with a balance of $673,315.38. As part of these loan agreements, the City had a junior position to the primary lender. Pegasus now wishes to switch lenders to Midwest Bank. The City will remain in second position with collateral for the remaining loan including a mortgage, a lien on equipment and guarantees which we will use to secure our debt. Item 22-5010 The Annual Comprehensive Financial Report for FY2021 The annual comprehensive financial report for the fiscal year ending December 31, 2021 is provided to be received and placed on file with the City Clerk’s Office. Item 22-8013 Bills Bills and Advanced Checks are submitted for approval; please direct questions to Gloria Osborn, Director of Finance and Information Systems. ORDINANCES AND RESOLUTIONS Item 22-1021 High Tunnel Structures (Final Reading) The Planning and Zoning Commission recommends amending Chapter 152 regulating high tunnel structures. Staff concurs with the recommendation. A high tunnel structure (HTS) is a translucent plastic covered structure that is at least six feet tall and is utilized as a greenhouse that can assist a gardener in extending the growing season up to year-round. The proposed amendment includes extending the time allowed for lighting inside an HTS from 6:00 am – 6:00 pm to 5:00 ___________________________________________________________________________________________________________________________________________________________________________________________ Page 2 of 5 am – 10:00 pm in all zoning districts that allow an HTS; and allowing an HTS as a permissive or accessory uses in the Agricultural, Light Industrial (M1) and General Business (B2) zoning districts. Item 22-1022 Establishing the Airport Commission (First Reading) Staff recommends approval of an ordinance establishing an Airport Advisory Commission, which will provide recommendations on capital projects, expansion, and rules and regulations for the airport. The proposed commission shall be composed of five members, including a pilot, a representative from the Fixed Base Operator (Jet Air Inc.), and a representative from the Knox County Area Partnership for Economic Development. Staff liaisons for this commission will include the Park Superintendent and Airport Manager, who shall serve as ex officio members. The Commission will provide an annual report to the City Council. Item 22-1023 Allowing UTVs and Golf Carts on City Streets (First Reading) At the request of members of the City Council, an ordinance authorizing UTVs and Neighborhood Golf Carts to operate on certain city streets is presented for consideration. UTVs and Neighborhood Golf Carts must be registered with the City in order to be able to operate on the selected city streets. The registration process would include an inspection of the vehicle by the Galesburg Police Department to ensure the vehicle meets specified requirements, including seatbelts, turn signals, and brake lights. The annual cost of registration is $100. Operators must be at least 18 years old, and all passengers must be at least eight years old. Operators must also carry liability insurance for the vehicle. The vehicles shall be operated in the same direction as traffic, while remaining as near as possible to the right side of the roadway. The vehicle shall obey all traffic regulations and operate in the same manner as automobiles using the roadway. Item 22-2040 Acceptance of Property Donation – 359 S. Henderson Street Staff recommends approval of a resolution accepting the donation of a residence and accessory structure located at 359 S. Henderson Street, which are in a dilapidated and unsafe condition. The property is owned by the estate of Eugene H. Goodlow, and the Administrator of the Estate wishes to donate the property to the City. Acquisition of the property would allow the City access to evaluate the property and determine if rehabilitation is feasible or move forward with demolition and clean-up of the property. There are applicable funds available in Property Redevelopment (Fund 23) to demolish or rehabilitate the property. The estimated cost of demolition is $14,000 - $16,000. Item 22-2041 Agreement with Discovery Depot Staff recommends approval of a resolution authorizing execution of a grant agreement with Discovery Depot Children’s Museum. The resolution authorizes the execution of a grant agreement with Discovery Depot in an amount up to $40,000. The award is split between reimbursement for lost revenues in fiscal years 2020 and 2021 ($25,000) and a targeted marketing campaign ($15,000). Submittal for reimbursement by Discovery Depot must occur within one year of the award. Item 22-2042 Agreement with Galesburg Visitor and Tourism Bureau Staff recommends approval of resolution authorizing execution of a grant agreement with the Galesburg Tourism and Visitors Bureau. Under the agreement, during 2023 through 2027, the Tourism Bureau would be eligible for reimbursement of up to $25,000 per year. This amount ___________________________________________________________________________________________________________________________________________________________________________________________ Page 3 of 5 would be split between targeted advertising (up to $15,000) and a Music and Murals event (up to $10,000). In the event that during that year the Tourism Bureau does not host the Music and Murals event, or fails to spend funds on targeted advertising, they would not be entitled to any payment. Item 22-2043 Purchase of 518 W. South Street Staff recommends approval of a resolution authorizing the purchase of 518 W. South Street in order to demolish the existing house and expedite the South Street storm sewer replacement project. The foundation of the house at 518 W. South Street has become damaged from a partial collapse of the old brick storm sewer located near the house. The storm sewer that partially runs underneath the house is included in the proposed South Street storm sewer project. Due to the storm sewer running under a portion of the house, and the damage to the foundation of the house, it is proposed to purchase the house from the owners of the property, Calvary Baptist Church, for $39,000. This will allow the city to demolish the house, as well as complete the planned South Street storm sewer reconstruction project without having to reroute the storm sewer around the house. BIDS, PETITIONS AND COMMUNICATIONS Item 22-3024 Replace PSB SAN Staff recommends approval of the bid submitted by Southern Computer Warehouse in the amount of $97,378.26 for purchase of the HP Storage Area Network (SAN). The Storage Area network (SAN) is the device that allows the public safety building to store all the information and data on the computer servers. This data includes computer aided dispatching (CAD), police records management system (RMS) network drives, Laserfiche, fire RMS and other information. Two bids were received for this purchase. Office Specialists provided the low bid; however, they did not meet minimum bid specifications as their bid did not have the required redundant systems in case of a drive failure. This purchase will be paid for from the computer replacement fund and police budget. Item 22-3025 Seminary & Mulberry Parking Lot Reconstruction Staff recommends approval of the bid in the amount of $186,647.00 submitted by Laverdiere Construction, Inc. for parking lot improvements at Seminary Street and Mulberry Street. The scope of the project is to construct a new parking lot on the northeast corner of Seminary Street and Mulberry Street. Two bids were received, with the low bid submitted by Laverdiere Construction Inc. in the amount of $211,306.00. Due to increased construction costs this year, the low bid was higher than anticipated and budgeted. The low bidder provided cost saving options to reduce the cost of the project. These included constructing a concrete pavement instead of an asphalt pavement as well as revising the landscaping price. The cost of asphalt has gone up significantly this year and constructing the lot in concrete is more cost effective than asphalt. This change will not reduce the useful life of the lot and will likely extend it. No changes to the landscaping plan will need to be made because of the reduced price. The revised bid amount with the cost saving measures is $186,647.00. Staff recommends approval of the revised amount. ___________________________________________________________________________________________________________________________________________________________________________________________ Page 4 of 5 Item 22-3026 South Street Storm Sewer Reconstruction Staff recommends approval of the bid in the amount of $494,669.66 submitted by Legacy Corporation for storm sewer replacement on South Street. The scope of the proposed project is to replace an existing 54” brick storm sewer that runs underneath South Street between Monmouth Boulevard and Holton Street. The brick sewer was inspected in 2016 and again in 2020 following a collapse of a portion of the sewer just south of South Street. After the 2020 inspection, it was determined that the sewer was in poor condition due to many defects and could fail again soon. Three bids were received for this project, with Legacy Corporation providing the low bid. A DCEO Rebuild Illinois grant will fund $300,000 of the construction costs for the project. The remaining $194,669.66 will be paid from the Storm Water Utility fund. The contractor has 45 working days to complete the project. It is anticipated that the project will start later this summer, but material delays could result in a delay in the start of the project. CITY MANAGER’S REPORT A. July TAC Report MISCELLANEOUS BUSINESS (Agreements, Approvals, Etc.) Item 22-4066 Service Contract with Carl Sandburg College The Public Transportation Advisory Commission recommends approval of a service contract between the City of Galesburg Transit and Carl Sandburg College (CSC) to provide students, faculty, and staff unlimited rides September of 2022 through August of 2023. Staff concur with the recommendation. The estimated CSC ridership for 2022-2023 is estimated at 6,000. At $0.40 per ride, it is estimated that the cost would be $2,400.00 for the year. This service contract would not change any routes or frequency thereof to the CSC campus. Item 22-4067 Amended 2022 Salary Schedule Staff recommends approval of amending the salary schedule. The positions of Recreation Supervisor and Recreation Coordinator are currently responsible for oversight of facilities, programming, and staff within the Recreation Division. This work has recently been carried out by one Recreation Supervisor (20EX) and one Recreation Coordinator (15EX). The Recreation Supervisor position is currently vacant, and after review of the organization, it is recommended to equalize the two positions, and conduct the work with two Recreation Supervisors (18EX) that would both report to the Director of Parks and Recreation. This change would result in an approximate total salary increase of $5,000. One Recreation Supervisor will focus on athletics and aquatics and the other Recreation Supervisor will focus on community programming and special events. It is anticipated that the current Recreation Coordinator will be promoted into one of the two vacant Recreation Supervisor positions. The other position will be posted for internal and external recruitment. Item 22-4068 Annual Maintenance agreement with ProPhoenix for GPD Software Staff recommends approval of the annual maintenance agreement with ProPhoenix Corporation for the continued support of the various modules of the proprietary software utilized by the Galesburg Police Department. The amount of the agreement is $82,775.39 and ensures that the RMS and CAD products perform properly. The system allows officers to see the status of all calls, the status of other officers in the field, retrieve a call, see additional details of the call provided by the call taker, complete a police report in the field, and make inquiries into the system to ___________________________________________________________________________________________________________________________________________________________________________________________ Page 5 of 5 obtain details of previous police reports. This software contains a state interface for inquiry on license status and registration data. The cost is budgeted annually with $27,942.71 paid out of the Police and Fire Departments budgets. The remaining amount of $54,832.68 will be paid for by the City and then reimbursed by the Emergency Telephone Systems Board (ETSB) and Knox County. TOWN BUSINESS Item 22-9016 Town Bills Respectfully submitted, Wayne Carl Interim City Manager July 5, 2022 Page 1 of 5 Galesburg City Council Regular Meeting City Council Chambers 55 West Tompkins Street, Galesburg, Illinois July 5, 2022 5:30 p.m. Called to order by Mayor Peter Schwartzman at 5:30 p.m. Roll Call #1: Present: Mayor Peter Schwartzman, Council Members Bradley Hix, Kevin Wallace, Dwight White, Sarah Davis, and Larry Cox, 6. Absent: Council Members Wayne Dennis and Jaclyn Smith-Esters, 2. Also Present: Interim City Manager Wayne Carl, City Attorney Brad Nolden, and Deputy City Clerk Ericka Gugliotta. Mayor Schwartzman declared a quorum present. The Pledge of Allegiance was recited. A moment of silence was observed in lieu of an invocation. Council Member Davis moved, seconded by Council Member Cox, to approve the minutes of the City Council’s regular meeting from June 20, 2022. Roll Call #2: Ayes: Council Members Hix, Wallace, White, Davis, and Cox, 5. Nays: None Absent: Council Members Dennis, and Smith-Esters, 2. Chairman declared motion carried. CONSENT AGENDA #2022-13 All matters listed under the Consent Agenda are considered routine by the City Council and will be enacted by one motion. 22-8012 Approve bills in the amount of $693,560.08 and advance checks in the amount of $693,012.95. Council Member Davis moved, seconded by Council Member Cox, to approve Consent Agenda 2022-13. Roll Call #3: Ayes: Council Members Hix, Wallace, White, Davis, and Cox, 5. Nays: None Absent: Council Members Dennis, and Smith-Esters, 2. Chairman declared motion carried by omnibus vote. PASSAGE OF ORDINANCES AND RESOLUTIONS July 5, 2022 Page 2 of 5 22-1020 Council Member Wallace moved, seconded by Council Member White, to approve Ordinance 22- 3676 on final reading amending Section 113.043 (A) of Chapter 113 of the Galesburg Municipal Code regarding the limitation on the number of Class A-1 liquor licenses. Roll Call #4: Ayes: Council Members Hix, Wallace, Davis, and Cox, 4. Nays: None Absent: Council Members Dennis, and Smith-Esters,2. Abstain: Council Member White, 1. Chairman declared motion carried. 22-1021 Ordinance on first reading amending Section 152.119 regarding High Tunnel Structures. BIDS, PETITIONS, AND COMMUNICATIONS 22-3023 Council Member Cox moved, seconded by Council Member White, to approve the bid, subject to IEPA approval, in the amount of $2,615,850.00 from J.C. Dillon Inc. for Phase VI of the lead sewer line replacement. Interim City Manager Carl stated that the increase in cost for Phase VI was due to material costs plus many service lines replacements are businesses on Main Street which increases the cost of traffic control. Roll Call #5: Ayes: Council Members Hix, Wallace, White, Davis, and Cox, 5. Nays: None Absent: Council Members Dennis, and Smith-Esters, 2. Chairman declared motion carried. PUBLIC COMMENT Kendall Bolin asked the Council whether an ordinance regulating side-by-side vehicles would be placed on an agenda for consideration. Mayor Schwartzman stated he would discuss this matter with him after the meeting. Bonnie Ericson extended her apologies for being late to the council meeting to give the invocation. CITY MANAGER’S REPORT Council Member Cox inquired about the several bumps on Henderson Street due to the heat and when they will be repaired. Interim City Manager Carl stated that IDOT will be addressing the issue next week. MISCELLANEOUS BUSINESS (Agreements, Approvals, Etc.) July 5, 2022 Page 3 of 5 Council Member White moved, seconded by Council Member Cox, to sit as the Town Board. The motion carried. TOWN BUSINESS 22-9014 Trustee Davis moved, seconded by Trustee Cox, to approve Town bills and warrants be drawn in payment of same. Fund Title Amount Town Fund $1,734.67 General Assistance Fund $4,875.42 IMRF Fund Social Security/Medicare Fund Liability Fund Audit Fund Total $6,610.09 Roll Call #6: Ayes: Trustees Hix, Wallace, White, Davis, and Cox, 5. Nays: None Absent: Council Members Dennis, and Smith-Esters, 2. Chairman declared motion carried. 22-9015 Trustee Dennis moved, seconded by Trustee Cox, to receive the Town Audit for the year ended December 31, 2021. Roll Call #7: Ayes: Council Members Hix, Wallace, White, Davis, and Cox, 5. Nays: None Absent: Council Members Dennis, and Smith-Esters, 2. Chairman declared motion carried. Council Member Davis moved, seconded by Council Member Wallace, to resume as the City Council. The motion carried. CLOSING COMMENTS Council Member Cox asked if the City had projections regarding future revenue sources, especially considering economist are predicting a recession is in the near future. Interim City Manager Carl stated that there will be a work session on July 25, 2022, to discuss the City’s budget and address these issues. Finance Director Osborn added that the City has been very prudent at maintaining a healthy fund balance as a safeguard for such situations. July 5, 2022 Page 4 of 5 Council Member Hix thanked everyone involved in the Big Bang Boom 4th of July event. Hix extended an invitation to anyone who might be interested in playing in the golf outing for the Galesburg Public School Foundation that will be held on July 8th. Council Member Wallace thanked those in attendance at the meeting. He hoped that everyone had a safe July 4th and he received very few complaints about fireworks. He wanted to assure people that their complaints to do not go unheard, but it can be difficult to catch people in the act of letting off fireworks. Council Member Wallace acknowledged the loss of Carlos Duncan and his contributions to the Galesburg Youth Boxing League that helped many young people in the community. Wallace also requested adding a future council item renaming the HT Custer ballpark in someone’s honor. Council Member White expressed his condolences to the family of Carlos Duncan. Carlos was a lifelong member of Galesburg who served the community in many ways, especially the youth, and that he should be recognized for his contributions. White also recognized the loss of another life long resident Donald Brannon. Mr. Brannon was another example of someone who gave back to our community and its youth. Council Member White added how excited he was to see that Galesburg was listed as one of the best small cities in America according to Census data complied by Pheabs.com. White stated Galesburg is a great City and encouraged everyone to get involved in the community. Council Member Davis announced the recipients of the July Co mmunity Blue Ribbon Award are Mike and Lori Landon. Mike and Lori have lived at 354 Hawkinson Avenue for 28 years and have made significant improvements to the structure and yard. Davis congratulated the Landon’s and thanked them for their hard work and making it a welcoming space. Mayor Schwartzman echoed the sentiments for the loss of Carlos Duncan and sends his condolences. The Mayor stated that the Railroad Days event was very successful. He also attended the Lipanda Day celebration at Park Plaza. He thanked the Fire Department for their attendance and having a French translator assist in explaining fire safety, which was a tremendous help. There being no further business, Council Member Wallace, seconded by Council Member White, to adjourn the regular meeting at 6:03 p.m. Roll Call #8: Ayes: Council Members Hix, Wallace, White, Davis, and Cox, 5. Nays: None Absent: Council Members Dennis, and Smith-Esters, 2. Chairman declared motion carried. July 5, 2022 Page 5 of 5 Peter D. Schwartzman, Mayor Ericka Gugliotta, Deputy City Clerk City-Owned Properties For Sale 2022 Tract Number Address/Location Parcel Number Bid Price Size of Lot Current Zoning Demo Cost City Assessor Full Value Date of Full Value Purchase Price 1 Vacant Lot formerly known as 1027 Lyman 9916386016 60 ft by 134 ft, 8,040 sq ft R-3B Multi Family $17,642.00 $2,730.00 2016 $660.00 2 Vacant Lot south of 40 W Second St. (No Direct Road Access) 9915407010 66 ft by 156.75 ft, 10,345.55 sq ft R-1B Single Family $600.00 1995 $205.00 3 Vacant Lot South of 40 W Second St. (No Direct Road Access) 9915407011 132ft by 157 ft, 20,691 sq ft R-1B Single Family $1,200.00 1995 $75.00 4 Vacant Lot formerly known as 711 Avenue A 9916429001 66 ft by 202 ft, 13,332 sq ft R-1B Single Family $25,573.03 $1,560.00 2019 $823.00 5 Vacant Lot West of lot at the Northwest corner of West Berrien and Dieterich Ave 9916252004 61 ft by 165 ft, 10,119 sq ft M-2 Heavy Industrial $870.00 2004 $743.00 6 Vacant Lot at Northwest corner of West Berrien and Dieterich 9916252005 61 ft by 165 ft, 10,119 sq ft m-2 Heavy Industrial $810.00 2001 $143.00 7 Vacant Lot formerly known as 704 W South St. 9915151006 50 ft by 220 ft, 10,890 sq ft R-2 Two Family $600.00 2013 $650.00 8 Vacant Lot formerly 586 W South St. 9915154004 33ft by 220 ft, 7,260 sq ft R-2 Two Family $42,785.13 $340.00 2020 $823.00 9 Vacant Lot formerly known as 421-423 Monmouth Blvd. 9915154053 13,423.77 sq ft R-2 Two Family $23,377.00 $2,710.00 2019 $823.00 10 Vacant Lot Formerly Known as 49 W North St. 9910403048 33 ft by 155 ft, 5,155 sq ft R-2 Family $30,600.19 $4,270.00 2020 $823.00 11 Vacant Lot formerly known as 796 E First St. 9914328003 10,008 sq ft R-1B Single Family $12,308.15 $5,220.00 2018 $823.00 12 Vacant Lot formerly known as 810 Pennsylvania Ave (South of 708 Pennsylvania) 9913331009 66 ft by 198 ft, 13,068 sq ft R-1A Single Family $0 $1,110.00 2003 $610.00 13 Vacant Lot North of 343 Indiana Ave 9913153002 50 ft by 140 ft, 7,000 sq ft R-1B Single Family $0 $990.00 2013 $650.00 14 Lot 12 in the vacant parcel south of 356 Michigan Ave. 9913176015 50ft by 140 ft, 7,000 sq ft R-3A Multi Family $0 $5,430.00 1981 Unknown 15 Vacant Lot formerly 240 Ohio Ave. 9913110011 50 ft by 140 ft, 7,000 sq ft R-1B Single Family $0 $2,183.86 2004 Unknown 16 Lot 9 in the vacant parcel North of 260 Michigan Ave. 9913134012 50 ft by 140 ft, 7,000 sq ft R-3A Multi Family $0 $3,400.00 1980 $2200.00 17 Vacant Lot formerly known as 84 Blaine Ave. 9911451029 62 ft by 183 ft, 11,438 sq ft R-2 Two Family $18,900.46 $4,270.00 2020 $823.00 18 Vacant Lot formerly known as 89 Arnold St. 9911481004 66 ft by 248 ft, 16,335 sq ft R-1B Single Family $15,504.45 $6,220.00 2020 $823.00 19 Vacant Lot formerly known as 179 Lincoln St. 9911380009 66 ft by 124 ft, 8,168 sq ft R-2 Two Family $16,443.94 $5,240.00 2018 $823.00 20 Vacant Lot formerly known as 356 N Chambers St. 9911304011 5,365.4 sq ft R-3A multi- Family $-0- $3,180.00 2010 $635.00 21 Vacant Lot formerly known as 844 N Farnham St. 9911278031 49 ft by 259 ft, 12,691 sq ft R-1B Single Family $15,390.86 $8,910.00 2019 Donation from Wels Fargo 22 Vacant Lot formerly known as 1075 N Farnham St. 9912101012 50 ft by 150 ft, 7,500 sq ft R-1B Single Family $9,524.79 $5,230.00 2018 $823.00 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by MJF & KDB Page 1 of 3 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Resolution authorizing submittal of the application for Rebuild Illinois Transit Capital Grant Program under the Illinois Department of Transportation. SUMMARY RECOMMENDATION: City of Galesburg’s GPT Advisory Commission held a meeting on July 14, 2022, and unanimously recommended approval of the submittal of the Rebuild Illinois Transit Capital Grant application. The City Manager, Director of Community Development and Transit Manager concur with their recommendation. BACKGROUND: The Rebuild Illinois Transit Capital Grant program is in the third round of funding. The Rebuild Illinois Transit Capital Grant program provides 100% funding for all approved proposals. In training sessions for this grant, facilitators have been telling agencies to submit multiple projects and take advantage of as much funding as possible. With that said, Galesburg GPT (GPT) is proposing to submit request for up to nine projects. A summary of the intended projects are listed below: 1.Supplement the cost of an existing grant for two buses. The City was originally in line to receive a grant for the replacement of two buses in 2018. Due to staffing changes with IDOT, City staff, and the pandemic, the grant was never released by IDOT to the City. IDOT is now in the process of issuing the original grant for the purchase of two buses. However, the funding remains at the 2018 level of $900,000. GPT staff have spoken at length with Gillig representatives regarding estimates for new buses and Gillig is recommending GPT estimate $575,000 per bus. As the purchase of two buses would cost $1,150,000 based on their estimate; GPT plans to request $250,000 in grant funds from this round of grant funding in order to fully cover the costs of the buses. 2.For our second request, GPT will request the purchase of three additional buses under this grant mode to replace additional units that will be at their life expectancy by the time the grant is awarded and the buses are built. The estimated cost for these three buses would be $1,725,000. GPT plans to request this amount for the three buses. 3.GPT staff have been researching the possibility of adding solar to the facility to offset electric charges. Recently, an analysis was completed on the building and determined that a solar array could be placed on the building to offset the building’s electricity use. The total cost of the project is approximately $300,000. GPT could take advantage of approximately $84,000 in Illinois SREC’s to offset this cost leaving a remaining cost of $216,000. GPT plans to request grant funds in the amount of $225,000 for this project. 22-2038 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by MJF & KDB Page 2 of 3 4. GPT has outgrown/is outgrowing the existing building. The original design for the building anticipated the need for expansion. GPT staff have been working with the original architect firm that designed the building to provide conceptual drawings as well as cost estimates for a needed expansion. Highlights of the expansion will include: 1) additional work bays to accommodate larger bus configurations for future migration to battery buses, 2) expansion of internal parking for buses to accommodate for adding charging station technology in the future, 3) additional storage, 4) a dedicated training room, 5) a cover for the above ground fuel tank to limit evaporation, and 6) additional parking. Legat Architects has completed a conceptual drawing of the expansion with an estimated cost of $5,895,938. The intent will be to request $6.5 million for the expansion. The difference provides for contingency, incidentals, and inflation for anticipated lag of project start. 5. GPT is in need of additional technology for monitoring buses. The original design of the building called for the fixed route bus staff to be on one end of the building and for the handivan staff on the other end. With the merging of GPT under the City, there are some technology issues that are lacking and need to be addressed. GPT would like to add additional cameras to the property as well as computers with monitors that can broadcast these cameras in various locations of the building where staff are located. The intent will be to request $30,000 in funding for this project and build out the system as much as possible. 6. GPT currently maintains a total of twenty-five bus shelters in the community. GPT staff would like to add solar lighting and solar USB charging stations to the shelters to provide safety and an additional amenity to patrons. The estimated cost to add the charging stations and solar lighting is $2,000 per shelter. GPT would like to request $50,000 on this grant to complete this project. 7. Since being built in 2015, the GPT building has been struck by lightning on a number of occasions, most recently on June 25, 2022, causing damage to numerous electronic devices in the building. In an effort to help mitigate these strikes, GPT staff would like to request $75,000 in funds for the installation of lightning rods to help minimize damage in the event of future lightning strikes. 8. With the addition of two new mechanics at Galesburg GPT this year, we are finding that we can now complete additional in-house repairs. One such repair is the alignment of the buses. The Transit Shop Foreman has requested the purchase of heavy-duty alignment stands. With the anticipation of expanding the shop area and increased traffic for the buses, GPT wishes to request two sets. Each set with shipping is just under $5,000. GPT staff will request $10,000 in grant funding for this purchase. 9. With the anticipation of switching over to battery operated buses in the future, GPT would like to secure funding to have a formal study completed that would provide: 1) needs assessment for retrofitting the building for a battery fleet, 2) additional electricity needs required to meet this need, 3) design of a dedicated transfer point (with charging capabilities), and 4) budgetary costs to complete. It would be anticipated that the cost of hiring a firm to complete this study would be approximately $100,000. GPT would request $100,000 for this project. Note: ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by MJF & KDB Page 3 of 3 Completing this study would allow for additional funding to be requested under future grant opportunities. BUDGET IMPACT: No budget impact. SUPPORTING DOCUMENTS: 1. Resolution 2. Galesburg TMF Expansion Drawing RESOLUTION NO. ______________ RESOLUTION AUTHORIZING SUBMITTAL OF THE APPLICATION(S) DATED JULY 18, 2022, FOR A PUBLIC TRANSPORTATION CAPITAL ASSISTANCE GRANT UNDER THE ILLINOIS DEPARTMENT OF TRANSPORTATIONS GENERAL AUTHORITY TO MAKE SUCH GRANTS. WHEREAS, The provision and improvement of public transportation facilities, rolling stock, equipment and services is essential to the development of safe, efficient, functional public transportation; and WHEREAS, The Illinois Department of Transportation has the authority to make such Grants and makes funds available to offset eligible capital costs required for providing and improving public transportation facilities, rolling stock, equipment, and services; and WHEREAS, Grants for said funds will impose certain obligations upon the recipient. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, KNOX COUNTY, ILLINOIS: Section 1. That an application(s) be made to the Division of Public & Intermodal Transportation, Department of Transportation, State of Illinois (The Department), for a financial assistance grant under the Illinois Department of Transportation’s general authority to make such Grants, for the purpose of off-setting eligible public transportation capital costs of the City of Galesburg. Section 2. That the Mayor of the City of Galesburg, is hereby authorized and directed to sign and submit such application on behalf of the City of Galesburg. Section 3. That the Mayor of the City of Galesburg is authorized to furnish such additional information as may be required by the Department in connection with the aforesaid application for said Grant. Section 4. That the Mayor of the City of Galesburg is hereby authorized and directed to execute on behalf of the City of Galesburg the Grant Agreement or subsequent Grant Agreement Amendments resulting from aforesaid application. Section 5. That the Mayor of the City of Galesburg is hereby authorized and directed to sign such documents as may be required by the Department to request payment for the project funding authorized under aforesaid Grant Agreement. Approved this ______day of ____________________, 2022, by roll call vote as follows: Roll Call #: Ayes: ______________________________________________________________________ Nays: ______________________________________________________________________ Absent: _____________________________________________________________________ Abstain: _____________________________________________________________________ _________________________________ Peter Schwartzman, Mayor ATTEST: ___________________________________ Kelli R. Bennewitz, City Clerk 60'-0" 60'-0" 60'-0"60'-0"60' -0"60'-0"507.3 Sprinklered, one story. The area of a Group B, F, M or S building no more than one story above grade plane of any construction type, or the area of a Group A-4 building no more than one story above grade plane of other than Type V construction, shall not be limited where the building is provided with an automatic sprinkler system throughout in accordance with Section 903.3.1.1 and is surrounded and adjoined by public ways or yards not less than 60 feet (18 288 mm) in width. Exceptions: 1.Buildings and structures of Types I and II construction for rack storage facilities that do not have access by the public shall not be limited in height, provided that such buildings conform to the requirements of Sections 507.3 and 903.3.1.1 and Chapter 32 of the International Fire Code. 2.The automatic sprinkler system shall not be required in areas occupied for indoor participant sports, such as tennis, skating, swimming and equestrian activities in occupancies in Group A-4, provided that: 2.1.Exit doors directly to the outside are provided for occupants of the participant sports areas; and 2.2.The building is equipped with a fire alarm system with manual fire alarm boxes installed in accordance with Section 907. [A]PUBLIC WAY. A street, alley or other parcel of land open to the outside air leading to a street, that has been deeded, dedicated or otherwise permanently appropriated to the public for public use and which has a clear width and height of not less than 10 feet (3048 mm). YARD. An open space, other than a court, unobstructed from the ground to the sky, except where specifically provided by this code, on the lot on which a building is situated. Where Sections 507.2 through 507.12 require buildings to be surrounded and adjoined by public ways and yards, those open spaces shall be determined as follows: 1. Yards shall be measured from the building perimeter in all directions to the closest interior lot lines or to the exterior face of an opposing building located on the same lot, as applicable. 2. Where the building fronts on a public way, the entire width of the public way shall be used. 507.1 General. The area of buildings of the occupancies and configurations specified in Sections 507.1 through 507.12 shall not be limited. UNLIMITED BUILDING AREA REQUIREMENTS EXISTING BUILDING CODE REVIEWUGEUGEUGEUG UEUEUEUEUEUEUEUEBUILDABLE SITE AREA TO MAINTAIN CODE COMPLIANT UNLIMITED BUILDING AREA FOR TYPE V CONSTRUCTION SITE PLAN - OPTION 4a EXISTING BUILDING ADDITIONAL PARKING - 24 SPACES LEGEND PROPOSED BUILDING ADDITION COVERED BUS FUELING ISLANDUGEUGEUGEUG UEUEUEUEUEUEUEUE REF. W D 12447 SF HEATED VEHICLE STORAGE 113 GAS CURB CONFERENCE 104 TRANSIT RECORDS 105 TRANSIT DIRECTOR 103 TRANSIT OFFICE 102 TRANSIT OFFICE 101 VESTIBULE 000 HANDIVAN DISPATCH 112 HANDIVAN OFFICE 111 BREAK ROOM 110 HANDIVAN RECORDS 109 TOILET 108 TOILET 107 UTILITY 106 WOMENS LOCKER 115 MENS LOCKER 116 MUD ROOM 114 CORRIDOR 100 47' 44' 54' 165 XIT #4 165 EXIT #5 7 165 EXIT #6 69 185' 33'65' 40' 12' AUTOMATIC WASH BAY 118 WASH BAY CONTROL ROOM 127 PARTS STORAGE/RECIEVING 125 TIRE STORAGE 124 MAINTENANCE BAYS 119 MECHANICS OFFICE 121 FLUIDS STORAGE 122 ELECTRICAL 120 WATER 126 165 EXIT #11 1 10' 79' UTILITY 117 FEC FEC FE FE CORRIDOR 100A 165 EXIT #3 11 70' 24' WORK AREA 123 FEC KB TR E W G EXISTING FLOOR PLAN REF. W D 12447 SF HEATED VEHICLE STORAGE 113 GAS CURB CONFERENCE 104 TRANSIT RECORDS 105 TRANSIT DIRECTOR 103 TRANSIT OFFICE 102 TRANSIT OFFICE 101 VESTIBULE 000 HANDIVAN DISPATCH 112 HANDIVAN OFFICE 111 BREAK ROOM 110 HANDIVAN RECORDS 109 TOILET 108 TOILET 107 UTILITY 106 WOMENS LOCKER 115 MENS LOCKER 116 MUD ROOM 114 CORRIDOR 100 47' 44' 54' 165 XIT #4 165 EXIT #5 7 165 EXIT #6 69 185' 33'65' 40' 12' AUTOMATIC WASH BAY 118 WASH BAY CONTROL ROOM 127 PARTS STORAGE/RECIEVING 125 TIRE STORAGE 124 MAINTENANCE BAYS 119 MECHANICS OFFICE 121 FLUIDS STORAGE 122 ELECTRICAL 120 WATER 126 165 EXIT #11 1 10' 79' UTILITY 117 FEC FEC FE FE CORRIDOR 100A 165 EXIT #3 11 70' 24' WORK AREA 123 FEC KB TR E W G FLOOR PLAN - OPTION 4a 64'-0"38'-0"1 2 3 4 6 7 8 910 11 1 2 3 4 5 6 7 4 5 6 7 8 1 2 3 101'-0"CONFERENCE STORAGE 7,285.54 sf 1,117.94 sf EXISTING BUILDING - 20,900 G.S.F. MAINTENANCE ADDITION - 3,460 G.S.F. VEHICLE STORAGE ADDITION - 7,285 G.S.F. CONFERENCE ADDITION - 1,120 G.S.F. 9 GREEN - 9 - NEW ELECTRIC BUS PARKING SPACES - 34' BUS 7 11 RED - 7 - EXISTING BUS PARKING SPACES - 29' BUS BLUE - 11 - HANDIVAN BUS PARKING SPACES LEGEND UGEUGEUGEUG UEUEUEUEUEUEUEUE50'-0"MAINTENANCE BAYS 50'-0" ELECTRICAL 9 PARTS STORAGE/RECI 5 3,459.17 sf STORAGE 20,902.47 sf Prepared by GUG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Resolution authorizing the transfer of funds from the Tax Increment Financing (TIF) District II fund to the TIF IV fund. SUMMARY RECOMMENDATION: The City Manager and Director of Community Development recommend approval of the resolution. BACKGROUND: The Illinois Tax Increment Allocation Redevelopment Act (the TIF Act), provides specifically for the transfer of funds from one TIF district to another. Section 4 (q) of the Act [65 ILCS 5/11-74.4-4(q)] provides that a municipality may utilize revenues generated in one redevelopment project area to pay for eligible costs in another redevelopment project area if the boundaries are contiguous to the redevelopment project from which the revenues are received, the redevelopment project areas are separated only by a public right of way, and/or the redevelopment project areas are separated by a forest preserve property with a width of less than one mile. Attached for the City Council’s consideration is a resolution authorizing the transfer of $150,000 from TIF II to TIF IV. These funds will be utilized to cover expenses related to the expansion of Parking Lot D, located at 125 S Seminary St. BUDGET IMPACT: The resolution provides for the transfer of $150,000 between the TIF II Fund and the TIF IV Fund. Sufficient funds are available in the TIF II Fund. SUPPORTING DOCUMENTS: 1.Resolution 22-2039 RESOLUTION NO. ___________ RESOLUTION PROVIDING FOR THE TRANSFER OF FUNDS FROM THE EAST MAIN STREET TIF DISTRICT II TO THE CENTRAL/EAST MAIN TIF IV REDEVELOPMENT PROJECT AREA TO PAY FOR ELIGIBLE COSTS WHEREAS, the City of Galesburg (the “City”) is authorized under the provisions of the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 11-74.4-1, et seq. (the “Act”), to finance redevelopment project costs in connection with redevelopment project area established in accordance with the conditions and requirements set forth in the Act; and WHEREAS, pursuant to 65 ILCS 5/11-74.4.-4 paragraph (q) of the Act, the City is authorized to utilize revenues generated in one redevelopment project area to pay for eligible costs in another redevelopment project area if the boundaries are contiguous to the redevelopment project from which the revenues are received, the redevelopment project areas are separated only by a public right of way, and/or the redevelopment project areas are separated by a forest preserve property with a width of less than one mile; and WHEREAS, the City desires to transfer funds from the East Main Street TIF (also referred to as “TIF II”) Special Tax Allocation Fund (the “TIF II Fund”) to the Central/East Main TIF (also referred to as “TIF IV”) Special Tax Allocation Fund (the “TIF IV Fund”) to pay for eligible redevelopment project costs within TIF IV; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Galesburg, Illinois as follows: 1. That the City Council hereby finds that, pursuant to the requirements of the Act, the boundaries of TIF II and TIF IV are contiguous, as shown in the attached map. 2. That the Tax Increment Financing Redevelopment Plan and Project for TIF IV, dated February 19, 2008, states on page 41 the following with respect to sources of funds: “If available, revenues from other economic development funding sources, public or private, will be utilized. These may include…applicable revenue from any adjoining Tax Increment Financing Area…” 3. That the Tax Increment Financing Redevelopment Plan and Project for TIF II, dated August 12, 2009, states on page 22 the following with respect to sources of funds: “If available, revenues from other economic development funding sources, public or private, will be utilized. These may include…property tax increment from any adjoining Tax Increment Financing Areas…” 4. That the City Council authorizes the Director of Finance and Information Systems to make a transfer in the amount of $150,000 from the TIF II Fund to the TIF IV Fund to assist with the financing of a project, specifically, funds will be used for eligible renovation costs related to the expansion of Parking Lot D, located at 125 S Seminary St in furtherance of the objectives of the redevelopment plan identified above. 5. That this resolution shall take effect immediately from and after its passage. Approved this day of , 2022, by a roll call vote as follows: Roll Call #: Ayes: ________________________________________________________________________ Nays: ________________________________________________________________________ Absent: _______________________________________________________________________ Abstain: ______________________________________________________________________ ATTEST: ______________________________ Peter Schwartzman, Mayor ____________________________ Kelli R. Bennewitz, City Clerk ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: BAN Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: Subordination Agreement with Midwest Bank SUMMARY RECOMMENDATION: The Interim City Manager, Director of Community Development and City Attorney / Administrative Services Director recommend approval of the subordination agreement. BACKGROUND: A subordination agreement is a commonly used legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor in the event of bankruptcy. The proposed agreement for Council consideration subordinates the City’s debt to that of Midwest Bank. In 2017, the City of Galesburg made four loans to Pegasus Manufacturing, Inc. All loans are current and in good standing, with a balance of $673,315.38. As part of these loan agreements, the City had a junior position to the primary lender. Pegasus now wishes to switch lenders to Midwest Bank. Midwest Bank will retire the debt of the previous lender and then issue a loan up to $500,000. Midwest Bank has made it a condition of this new loan that they have a similar senior position as the previous lender. The City will remain in second position with collateral for the remaining loan including a mortgage, a lien on equipment and guarantees which we will use to secure our debt. BUDGET IMPACT: N/A SUPPORTING DOCUMENTS: 1.Subordination Agreement 22-4065 Subordination by City of Galesburg, Illinois Prepared by Midwest Bank and Mail to: 200 East Broadway, P.O. Box 440 Monmouth, Illinois 61462 Ph. (309) 734-2265 City of Galesburg (called the “Subordinate Party”) the owner and holder of the following described instrument(s) executed by, Pegasus Manufacturing, Inc. Title of Date of Date Office Document File Instrument Instrument Filed Filed No. Mortgage 12/13/2013 12/13/2013 Knox 1015007 Mortgage 04/28/17 04/28/17 Knox 1040764 And, Midwest Bank (called the “Lender”) has agreed to loan $500,000.00 to Pegasus Manufacturing, Inc. (called the “Borrower”) secured by a real estate mortgage from Pegasus Manufacturing, Inc. for the following purposes: Refinance and Consolidate Debt THEREFORE, in consideration of the Lender’s agreement to make such loan to Borrower, the Subordinate Party (1) consents to the Borrower obtaining the loan from the Lender for such purposes, and (2) agree to and does subordinate in favor of the Lender and its successors and assigns its liens or security interest created or evidenced by the above described instrument(s) insofar as they cover the following described property and provided the Lender perfects a lien on that property: Legal Description: Lot 6 in Knox-Galesburg Industrial Park II, Re-subdivision Number 2, being a re- subdivision of Lot 5 of the Knox-Galesburg Industrial Park II, Re-subdivision Number 1, City of Galesburg, Knox County, Illinois; EXCLUDING THEREFROM a portion of Lot 6 more particularly described as follows: Beginning at the Southeast corner of Lot 6 Knox-Galesburg Industrial Park II, Re- subdivision Number 2; thence North 89 degrees 07’ 33” West, a distance of 56.11 feet along the South line of said Lot 6; thence North 00 degrees 50’ 34” East, a distance of 24.60 feet to the North line of said Lot 6; thence Southeasterly 57.95 feet along the arc of a curve to the left having a radius of 507.72 feet and 57.92 foot chord bearing South 74 degrees 27’ 59” East to the Northeast corner of said Lot 6; thence South 00 degrees 22’ 23” West, a distance of 9.95 feet along the East line of said Lot 6 to the Point of Beginning, said tract containing 0.021 acres more or less. The Real Property or its address is commonly known as: 1382 Enterprise Avenue, Galesburg, IL 61401. The Real Property tax identification number is: 99-21-253-002. This subordination is limited to the amount actually loaned by the Lender to the Borrower (principal and accrued interest) for the foregoing purposes and also the amount actually advanced for foreclosure costs and other advances made or to be made by Lender, for a total limitation not to exceed $500,000.00. Any amount which is in excess of this figure will not be covered by this subordination unless prior written consent was obtained form the Subordinate Lender for incurring the expenditure in question. IN WITNESS WHEREOF, the City of Galesburg, Illinois, has caused this subordination to be signed on the ___________ day of July, 2022. City of Galesburg, Illinois WITNESS:________________________ By:_____________________________ Title:________________________ Title:____________________________ ****************************************************************************** ACKNOWLEDGEMENT State of Illinois ) ) ss. County of ) On this day before me, the undersigned Notary Public, personally appeared, ________________________________sworn to me known to be the individual described in and who executed the Subordination, and acknowledged that they signed the Subordination as their free and voluntary act and deed, for the uses and purposes therein mentioned. Given under my hand and official seal this day of June 2022. By____________________________________ Residing at ___________________County. Notary Public in and for the State of Illinois. My Commission expires ______________________. Seal ŶŶƵĂůŽŵƉƌĞŚĞŶƐŝǀĞ&ŝŶĂŶĐŝĂůZĞƉŽƌƚ zĞĂƌŶĚĞĚĞĐĞŵďĞƌϯϭ͕ϮϬϮϭ 22-5010 Annual Comprehensive Financial Report of the City of Galesburg, Illinois For the Fiscal Year Ended December 31, 2021 Prepared by: Finance Department City of Galesburg, Illinois Table of Contents December 31, 2021 Page Introductory Section Transmittal Letter i Certificate of Achievement for Excellence in Financial Reporting xiii Organization Chart xiv Elected and Appointed City Officials xv Financial Section Independent Auditors’ Report 1 Required Supplementary Information Management’s Discussion and Analysis (Unaudited) 4 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position 15 Statement of Activities 17 Fund Financial Statements Balance Sheet - Governmental Funds 19 Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position 21 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Statement of Net Position - Proprietary Funds 25 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds 27 Statement of Cash Flows - Propriety Funds 28 Statement of Fiduciary Net Position - Fiduciary Funds 30 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 31 Notes to Basic Financial Statements 32 City of Galesburg, Illinois Table of Contents December 31, 2021 Page Required Supplementary Information Historical Pension and Other Postemployment Benefit Information: Illinois Municipal Retirement Fund: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 93 Schedule of Employer Contributions 96 Illinois Municipal Retirement Fund - Town of the City of Galesburg: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 98 Schedule of Employer Contributions 100 Police Pension Plan: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 101 Schedule of Employer Contributions 103 Schedule of Investment Returns 104 Firefighters’ Pension Plan: Schedule of Changes in the City’s Net Pension Liability and Related Ratios 105 Schedule of Employer Contributions 107 Schedule of Investment Returns 108 Other Postemployment Benefit Plan: Schedule of Changes in the City’s Net OPEB Liability and Related Ratios 109 Schedule of Employer Contributions 110 Schedule of Investment Returns 111 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 112 Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Economic Development Fund - Major Special Revenue Fund 113 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Parks and Recreation Fund - Major Special Revenue Fund 114 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Grants Fund - Major Special Revenue Fund 115 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Public Transportation Fund - Major Special Revenue Fund 116 Notes to Required Supplementary Information 117 Supplementary Information Nonmajor Governmental Funds: Combining Balance Sheet 118 City of Galesburg, Illinois Table of Contents December 31, 2021 Page Combining Statement of Revenues, Expenditures and Changes in Fund Balances 122 Special Revenue Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: City Gas Tax Fund 126 Motor Fuel Tax Fund 127 State Special Enforcement Fund 128 Stormwater Utility Fund 129 Foreign Fire Fund 130 Airport Fund 131 Property Redevelopment Fund 132 Public Transportation Projects Fund 133 911 Communication Fund 134 Town of the City of Galesburg Fund 135 Debt Service Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: 2011C Business Park Fund 136 2013A GO Bonds Business District Fund 137 2016 GO Bond Debt Service Fund 138 Capital Projects Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: 2013A Business District Fund 139 Utility Tax Capital Projects Fund 140 TIF 3 Regency Capital Project Fund 141 Building Repair and Maintenance Fund 142 TIF Downtown Fund 143 TIF East Main Fund 144 Computer Replacement Fund 145 Vehicle Replacement Fund 146 Players Fields Fund 147 Capital Planning Fund 148 TIF IV Fund 149 TIF V Fund 150 Permanent Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Linwood Cemetery Fund 151 East Linwood Cemetery Fund 152 City of Galesburg, Illinois Table of Contents December 31, 2021 Page Component Unit Statement of Net Position and Governmental Funds Combining Balance Sheet 153 Statement of Activities and Governmental Fund Combining Statement of Revenues, Expenditures and Changes in Fund Balances 154 Statistical Section (Unaudited) Contents 155 Comments Relative to Statistical Section 156 Financial Trends Net Position by Component - Last Ten Fiscal Years 157 Changes in Net Position - Last Ten Fiscal Years 159 Fund Balances, Governmental Funds - Last Ten Fiscal Years 163 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years 165 Revenue Capacity Direct and Overlapping Property Tax Rates - Last Ten Tax Years 167 Assessed Value and Actual Value of Taxable Property - Last Ten Tax Years 169 Principal Property Taxpayers - Current Year and Ten Years Ago 171 Property Tax Levies and Collections - Last Ten Tax Years 172 Taxable Sales by Category - Last Ten Tax Years 173 Direct and Overlapping Sales Tax Rates - Last Ten Tax Years 175 Debt Capacity Ratio of Net General Bonded Debt Outstanding by Type - Last Ten Fiscal Years 176 Direct and Overlapping Governmental Activities Debt 178 Demographic and Economic Information Demographic and Economic Statistics - Last Ten Fiscal Years 179 Principal Employers - Current Year and Ten Years Ago 180 Full-time Equivalent City Government Employees by Functions/Programs - Last Ten Fiscal Years 181 Operating Information Operating Indicators by Function - Last Ten Fiscal Years 183 Capital Asset Statistics by Function - Last Ten Fiscal Years 185 City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us i June 24, 2022 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Galesburg: State law requires that every general-purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended December 31, 2021. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon, a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Baker Tilly has issued an unmodified (“clean”) opinion on the City of Galesburg’s financial statements for the year ended December 31, 2021. The independent auditors’ report is located at the front of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The city of Galesburg, incorporated on February 14, 1857, is located on Interstate 74 in northwest Illinois. Galesburg is located approximately 50 miles east of the Mississippi River. Galesburg is central 45 miles from both Peoria and the Quad Cities on I-74, and a three-hour train ride from downtown Chicago via Amtrak. This central location allows residents to be able to access a variety of different cities with ease. It currently occupies approximately 17.75 square miles and, based on the 2020 U.S. Census Bureau estimate, serves a population of 30,052. The City of Galesburg (City) is empowered to levy a property tax on real property located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The City is a home rule municipality and has operated under the Council-Manager form of government since 1957. Policy-making and legislative authority are vested in a governing council (Council) consisting of seven council members and a mayor. The Council appoints the government’s city manager, who in turn appoints the heads of the various departments. The council members are elected, for four-year terms, from defined city wards. Residents of each ward vote for their ward’s council member only. All city residents elect the mayor for a four-year term. The City of Galesburg provides a full range of services, including police and fire protection, water service, refuse collection, recycling collection, landscape waste collection, parks, campground, municipal airport, municipal golf course, municipal indoor swimming pool, water park, recreational programs, public library, cemeteries, and the care of streets and sidewalks. The City of Galesburg also is financially accountable for a legally separated public library and the Town of the City of Galesburg, both of which are reported separately within the City of Galesburg’s City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us ii financial statements. Additional information on these legally separate entities can be found in the notes to the financial statements. The Council is required to adopt a final budget before the beginning of the fiscal year to which it applies. This annual budget serves as the foundation for the City of Galesburg’s financial planning and control. The budget is prepared by fund, function (e.g., public safety) and department (e.g., police). Department heads may transfer resources within a division as they see fit. Transfer between departments, however, need special approval from the City Council. Local economy Galesburg is a strategic location for distribution operations, trans-loading, rail equipment manufacturing, assembly and repair operations, and value-added agribusiness. Due to its advantageous location, three industrial parks were created in the mid to late 1990’s. In 2003, the City Council acquired additional land, 350 acres, which is adjacent to Interstate 74 to help more companies serve the consumers in or around the Galesburg market. Central location and major transportation assets are among the greatest assets the Galesburg area has to offer. Galesburg's transportation industry has been a central component of its revitalization efforts. Burlington Northern Santa Fe (BNSF) Railway Company employs approximately 1,000 workers in the Galesburg Classification yard. BNSF operates various main lines that converge on Galesburg. Numerous trains travel through Galesburg before being re- routed to their destination. There are various industrial facilities in the city that provide multiple benefits to the local economy. Examples include United Facilities, a large food warehousing and distribution facility; Midstate Manufacturing offering metal fabrication; and Blick Art Materials, an art supply mail order and distribution facility along with having store fronts in many cities. Another manufacturing company which provides employment in the city is ILPEA which manufactures such things as plastic gaskets. In 2014, Pegasus Manufacturing located to Galesburg from California. Pegasus is a contract manufacturer of complex machined parts and assemblies for the food processing, automotive, industrial, and mold & die industries. In 2018, Jupiter Machine Tool, Inc. opened its new facility in the community. The company specializes in making computer-numerical controlled manufacturing equipment that other manufacturing companies buy and then use for their operations. Also, announced in 2018, Midstate Manufacturing purchased two existing buildings on McClure Street and Monmouth Boulevard for expansion purposes. In 2019, Phoenix Investors purchased the former Maytag facility and commenced a complete renovation of the existing building. One of the buildings consists of approximately 855,000 square feet. The other building has approximately 462,000 square feet. In 2020, Innovative Production USA announced the opening of their manufacturing company in Galesburg. The company focus is on converting sustainably grown agricultural inputs into high- quality plant-based food ingredients. The company works in supplying plant-based ingredients to other food processing companies creating food products such as snack bars and protein shakes. Sitka Salmon Shares, a subscription-based seller of fish, is a small business that Galesburg continues to grow due to Sitka acquiring another business located in Alaska. In 2015, the company purchased Big Blue Fisheries, a fish processing facility in Sitka, Alaska, which assists City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us iii Sitka by creating a more integrated supply chain. In 2016, Sitka Salmon Shares expanded into a larger warehouse section to increase its freezer capacity to allow member growth. The city continues to see growth in the retail sector. The community has seen the construction of a variety of retail establishments such as the Casey’s General Store which opened on Seminary Street in the summer of 2015. Also, in 2015, the Super Clean Car Wash was built on Carl Sandburg Drive west of the new Casey’s. The car wash is a 110-foot tunnel wash that both washes and dries the car and has the capacity to clean up to 100 cars per hour. Blush Salon and Spa opened on Main Street in 2015 and offers a variety of services. In 2015, Midwest Uniform Supply which offers mostly medical attire, mainly scrubs, and embroidery services moved its location up Seminary Street. Another retail store, which opened in 2015, includes a two-level antique shop, the Junk Drawer, on Cherry Street. In 2016, a renovation of an existing building was completed to house Slumberland Furniture. A newly constructed Hy-Vee gas station and convenience store was located on North Henderson Street in front of the Hy-Vee grocery store during the calendar year of 2016. In 2017, the Yemm Chevrolet dealership, on Henderson Street, completed the construction of a second building to provide additional showroom space for its vehicles. Also, in 2017, Scott Equipment which sales power equipment and tools as well as performs equipment repair services opened its doors on North Linwood Road. In 2019, a Verizon store opened on North Henderson Street. In 2020, Nature’s Treatment refurbished a building and opened its cannabis dispensary business. Various establishments opened their doors in 2021. Desert Down Ranch Wear opened to provide another women’s boutique that brings the latest in stylish western fashion, leather accessories and turquoise jewelry. Also opening in late 2021, is the Sprinkle and Spon Allery-Conscious Treats on Seminary Street which features plant based, allergy-friendly desserts. Reserve Artisan Ales and The Vault opened its facility and includes a pour-your-own style brewery featuring craft beer and a covered patio. The Vault will be a modern industrial event space within the Reserve Artisan Ales. The 18,000 square foot brick building was home to many businesses including car dealerships. In 2017, Discovery Depot, a children’s museum, announced the expansion of exhibits to the second floor of their existing building which allows the museum to attract more visitors. The expansion was possible due to the museum’s capital campaign that raised $1.6 million. The City of Galesburg also provided TIF funding to the museum for the various projects. Seminary Square, a 140-acre regional shopping center, is anchored by Wal-Mart Supercenter and Menard’s. The shopping center also includes retail and a few restaurants such as Rue 21, Maurice’s, and Buffalo Wild Wings. In 2012, the Toyota dealership constructed a new building in the highly traffic area of Seminary Square. After the Toyota dealership made the move, the locally owned Nissan dealership relocated to the former Toyota dealership on North Henderson Street. After the move, the Nissan dealership building went through a new façade, a remodeling of the interior of the building, all of which has brighten up the appearance of the site. In 2016, Kohl’s store, Pet Supplies Plus, and Aspen Dental opened in the Seminary Square Center. In 2017, Kay Jewelers and Hibbett Sports opened their stores in Seminary Square. In 2019, Knox Family Dental opened its doors to new dental patients. In 2020, Guacamole Grill opened its restaurant in the Seminary Square shopping center. It is anticipated, in 2022, that Shoe Sensation will open a new store at Seminary Square. In 2018, developers announced the grand opening of the Galesburg Crossings, a new shopping center in the former Walmart building at Henderson Street and Carl Sandburg Drive. Four stores located in the building and include PetSmart, Harbor Freight Tools and Five Below. The fourth store, Marshalls, opened in 2019. In 2020, the Dollar Tree store relocated from North Henderson Street to a retail spot at the Galesburg Crossings. The City of Galesburg and the Knox County Area Partnership for Economic Development were key partners and were instrumental in bringing these national companies to the community, generating jobs and tax revenues. City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us iv In 2015, a Holiday Inn Express & Suites opened on East Main Street. The prior Holiday Inn on Washington Street was renovated and converted into a Baymont Inn & Suites. Some other commercial and retail expansion include an Aldi grocery store which constructed a site in the Gale Village development on North Seminary Street and opened in 2013. In 2019, Aldi’s added an additional 1,200 square feet in order to provide additional products for its customers. In regards to restaurants, in 2015, the construction of a Happy Joe’s restaurant was completed on North Henderson Street. In 2016, the city welcomed an additional restaurant, Taco John’s on North Henderson Street. Also, in 2016, Arby’s restaurant demolished its old building and constructed a new restaurant at the same location on North Henderson Street. Finally, in 2016, Pizza Ranch opened its doors next to the Aldi’s grocery store on North Seminary Street. In 2017, two downtown restaurants opened, the Masa Sushi and Hibachi Steakhouse, which offers a variety of sushi entrees and traditional hibachi dinners and the Koreana Restaurant which features South Korean cuisine. Also, in 2017, Starbucks opened on North Henderson Street. In late 2017, Burger King opened its new restaurant on Seminary Street next to Casey’s General Store. In 2018, more restaurants opened. These restaurants include 156 East on Main Street, Craft Butcher and Deli on Seminary Street and Carriage House Bakery, Coffee and Ice Cream Shop also on Seminary Street. In 2019 Culver’s Restaurant open on North Henderson Street. Also, in 2019, McAlister’s Deli opened on Gale Village Drive, Jimmy’s Pizza in the downtown area, Judy’s Family Café on North Broad Street, and Papa John’s on North Henderson Street. In 2020, more restaurants opened in the city which includes La Cantinita and Lenny’s Grill & Subs. Galesburg has attracted employers due to the city’s low costs, market access and transportation assets. Retail developments in the downtown area include Jimmy John’s and Iron Spike Brewery. In 2017, a new shoe store, 6140Run! also located in the community. Through programs such as the City’s Revolving Loan Program, funds are made available for new entrepreneurs and small business start-ups. Business start-ups occurred along Seminary Street and Main Street. Small business start-ups such as Denim and Pearls has impacted the city’s economy in a positive way. The facade improvements approved along Main Street have impacted the local economy by creating a vibrant and thriving downtown area. In 2015, Council approved a façade grant for 250 E Main Street. The scope of work involved window replacement on the north and east sides of the first floor and installation of new vestibules on the north and east sides. In 2016, a former bank building was renovated to house a 24-hour, 10,000 square foot, Knox County YMCA location to provide its members with two locations in the community. In 2017, the City Council approved a TIF and façade agreement for the Cornucopia, an artisan and specialty grocery store which is located on South Seminary Street. In 2018, the City Council approved a façade agreement for 41 South Seminary Street. This improvement is for the site of a butcher shop and farm-to-table seasonal deli. In 2020, the City Council approved the façade assistance for 169 North Broad Street for the Safe Harbor Family Crisis Center Purple Hanger Resale Shoppe. Also, in 2020, a façade grant was provided to 66 North Seminary Street to assist in the restoration of the exterior of the building. In 2017, the City was awarded a $378,000 grant through the Illinois Housing Development Authority’s (IHDA) single-family rehabilitation grant program to make repairs on low-income houses over the next two year. The grant allows the City to present forgivable loans to approximately nine homeowners, depending on the cost of the work required in the homes. The homes selected for the program were required to be existing residential properties privately owned and used as the owner’s primary residence. The City committed $20,000 in matching funds for the grant. In 2017, the City was also awarded a grant worth $40,000 through IHDA’s Abandoned Residential Property Municipal Relief Program. The grant reimbursed the cost of demolition for houses that the City demolished since 2015. In 2020, grant dollars in the amount of $250,000 was provided to businesses due to the interruption of services due to the COVID 19 City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us v pandemic. While not required for the grant, the City Council approved matching the grant dollars with City funds for the program. The medical sector has also seen growth. Medical activities have included the construction of an addition to an oral surgeon's office, the construction of a hospital office and warehouse facility, a radiology addition to one of the hospitals and the construction of a chiropractic clinic. The Veterans Affairs (VA) Clinic constructed a facility which opened in 2013. In 2014, another medical clinic opened its doors, the Cancer Care Clinic, which constructed its facility near the VA outpatient clinic. The center offers treatment options for patients who would normally have to travel to other cities to receive treatment. In 2018, a dialysis center, the Fresenius Kidney Care, was constructed on Seminary Street. This site allows the ability to expand dialysis services to patients, as well as offering its patients better access to space with better equipment. In 2015, OSF St. Mary Hospital unveiled a $3.35 million intensive cardiac care unit of the hospital which allowed the hospital to expand technological features. In 2015, the OSF hospital also completed the mammography unit, chapel and admitting area and began renovation of its laboratory. In 2016, the OSF’s Galesburg Health Clinic revealed the newly remodeled clinic, estimated at $12 million, which included 40 new exam rooms, a new lobby and moving all outpatient care units to the first floor. Also, in 2016, the OSF Prompt Care Clinic moved its location to the OSF St. Mary Center campus on Seminary Street. This relocation provided an opportunity for patients to receive care for minor injuries and illnesses and, if needed, provide the patient with emergent care in a more-timely manner. In 2017, the main lobby of the OSF St. Mary Medical Center renovation was completed, with a value of approximately $2.2 million, to create a more efficient flow for patients and visitors while creating a more open and healing environment. In 2017, the OSF group began working on the $22 million expansion and renovation of the surgery, laboratory department and center for outpatient services. Also, in 2017, OSF Life Flight began a daily relocation of a Peoria-based helicopter to the OSF St. Mary Medical Center in Galesburg. The repositioning occurs, weather permitting, during daytime hours. The repositioning allows OSF HealthCare to provide a more-timely response to patients as approximately 80 percent of all patients transported by the helicopter are transferred from the west-central region area which includes Galesburg, Monmouth, Kewanee, and the Quad-Cities. In 2020, OSF expansion projects included a new family birthing center and expansion and renovation of the surgical services floor, center for outpatient services, and laboratory. During 2020, OSF started providing inpatient dialysis and an extensive brick replacement project; in total, more than $30 million was invested back into the Galesburg community. Local government has also added to the local economy through construction projects. In 2015, the Galesburg transit buses and handivans relocated to a new City transit facility on Monmouth Boulevard. The 20,000 square foot facility was constructed with federal and state grant funds for a total of approximately $4.2 million. Also, in 2015, an open house was held at the renovated Amtrak train station. Amtrak improvements included a windowed extension to the depot looking out on the railroad tracks and the addition of a ticket booth for Burlington Trailways buses. The project cost more than $880,000 and was funded through grants. Finally, in 2015, a parking lot renovation, located at Seminary Street and Mulberry Street, with a cost of approximately $770,000, was completed. The project added parking spots, widening of the entrance, landscaping, and decorative lighting. In 2017, the City completed the renovation of the Public Safety Building. In 2017, the Knox County Courthouse completed the final major phase of its exterior renovation projects which included the reconstruction of the east entrance. The total cost of the project was approximately $334,000. The newly renovated Park Plaza opened on September 30, 2020. Both Park Plaza and Parking Lot E underwent renovations to the existing spaces that had become deteriorated. The $1.54 million project provides the availability of a downtown area space for community events. City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us vi Various educational sites have already or will be changing. The Knox College Office of Communications moved its office about one-half block from the college’s campus to a former lumber company building. In 2012, one of the five elementary schools, Steele School, received $5.5 million in renovations which included remodeling of classrooms, a new gymnasium/multi- purpose space and a new administrative area. In 2014, the Galesburg High School officially opened its new athletic stadium. The $16 million project includes a football complex, 50,500 square foot multi-purpose building, attached two-story field house and a 2,840-seat stadium. Additionally, two new basketball courts, tennis courts, soccer field and improvements to the varsity baseball and wrestling areas were completed. In 2015, the Galesburg High School renovated the front entry way of its main building. The project included the renovation of the lobby and entryway to feature glass ceiling to floor, the removal of asbestos, and the replacement of flooring at an estimated cost of approximately $2.5 million. Also, in 2015, the Galesburg CUSD 205 began the construction of a new elementary school with an estimated cost of $18.2 million which replaced one of the five elementary schools in the district and opened the doors of the new school in 2016. Finally, in 2015, Knox College received a $5 million donation to support the construction of the new Whitcomb Art Building. The vibrancy of Knox’s art culture is displayed from the building’s dynamic façade which comprises of large, sliding doors that serve as sun- shading devices by moving with the changing seasons. The Whitcomb Art Building, costing approximately $8.0 million, was dedicated and opened in 2016. In 2018, the Galesburg school board approved a $56 million facilities plan of renovating some existing buildings and allowing some other buildings to be decommissioned. The addition and renovation projects took place at Lombard Middle School, King Elementary School, Steele Elementary School, and the Galesburg High School. Lombard Middle School now houses all fifth and sixth graders in the district. It is anticipated that in 2022, the high school will transition to a seven through twelve grade attendance center. In 2021, the school district board of education approved a contract to purchase a building near the high school for $1.3 million. One of the uses that the district will utilize the building for is for its pre-school program. Residential and commercial programs and construction has also occurred in the city. In 2012, a 60 unit, 144-bedroom complex was constructed to fill a void in the student housing market for Carl Sandburg College. In order to provide future interest in the development of a residential subdivision, in March 2015, the City Council approved a residential infrastructure assistance program. The program is an incentive program that provides financial assistance to encourage single family and two-family residential development in instances where the cost of infrastructure proves to be a barrier to development otherwise occurring. By providing an incentive program, such as this one, the City could see a return on its investment with additional families in the community, as well as an increase in the City’s property tax base. In 2016, a new subdivision project, Lincoln Park Estates, began to construct town homes and single-family dwelling houses. The first units were ready for families in 2017. In 2017, the City Council approved the development agreement with MLKKM Properties, LLC on the development of approximately six acres of commercial property north of Gale Village. It is anticipated that after the commercial property is developed, the next step of the plan is to develop residential property in the area. In 2021, i3 Broadband announced that the company will be expanding its fiber optic high-speed internet service to the entire city of Galesburg. The company announced it would invest $15 million to provide broadband service to Galesburg. Construction will begin and the company will acquire a retail location for service and billing needs which will bring new jobs to the community. Expected delivery of the broadband to the city is to occur in 2022. The City has completed the construction of three grade separations, with a combined total value of $33.5 million. In 2012, the first bridge, the West Main Street overpass, or the Moffitt bridge, City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us vii was completed. In 2014, the North Seminary Street bridge, the Bickerdyke Bridge, was completed and allows better access and removes the delay of railroad traffic to the medical facilities when traveling from the south to north end of the community. The final bridge completion on East Main Street was completed in the summer of 2018. Given the difficulty and timeliness needed to complete the East Main Street underpass bridge, this project was intentionally left as the last one to be completed. The grade separations improve emergency response times and traffic. The most recent per capita income is reported at approximately $44,921. In 2012, the unemployment rate was 8.4% and in 2021 the rate decreased to 6.6%. The decreased unemployment rate could be attributed to an increase in labor force participation. The unemployment decreased from 8.6% in 2020 to 6.6% in 2021 which could be the result of businesses shutting down in 2020 due to the COVID 19 pandemic and increasing business activity in 2021. With the current information available, in ten years, school enrollment decreased by 708 students, bringing the student body total to 3,895 students in 2021. The decrease could be attributed to the decrease in population during the same time period. Long-term financial planning As a strategic plan for future business growth, the City owns a logistics park consisting of approximately 350 acres. The location of the logistics park is exceptional as Interstate 74 is adjacent to the north of the park, the Burlington Northern Santa Fe Railway and Illinois Route 150 are adjacent to the south of the park, and Knox County Highway 10 is adjacent to the east of the park. All infrastructures are adjacent to the site. Additional infrastructure improvements have been implemented such as water line extension, sewer extension, broadband upgrades, and curb cuts. Also, as a result of the annexation of the logistics park properties, various properties became contiguous to the City limits. In 2019, the city-owned park was named a certified site in the BNSF Premier Parks, Sites and Transload program. At the time, the park joined only 17 other rail-served sites in the U.S. as part of BNSF’s certification program, which means these parks will be marketed by BNSF. BNSF created the certification program to help identify and develop rail-oriented sites. Site certification is a process where a third party evaluates the shovel-readiness of development site. The designation is an important marketing item that communicates to prospective developers that the site has been vetted and that development on the site can proceed in an expedited manner. Businesses that locate on a certified site can expect development timelines to be shorter. The City established the Planning Fund to plan and prepare for future capital improvements to City owned buildings. The Planning fund’s purpose is to achieve high impact, quality of life or economic development pursuits that will further stabilize the City’s revenue sources. The Planning Fund provides the City Council with opportunity and funds to direct Administration to pursue short-term and long-term projects that will enhance the community in a variety of ways. In June 2008, the City Council approved the ordinances adopting, designating, and approving the TIF IV Redevelopment Project Area and an ordinance adopting tax increment financing for same. The TIF IV encompasses the majority of the downtown area not already located within TIF I, as well as the East Main Street corridor stretching to I-74. The TIF IV district has a life of 23 years in accordance with state statute. The City has voluntarily agreed to refund increment to affected taxing bodies after 12 years for the portion of the district located east of Grand Avenue. The establishment of the TIF IV district plays a crucial role in providing redevelopment incentives for the affected areas. The City Council also approved the ordinances adopting, designating, and approving the TIF V Redevelopment Project Area and an ordinance adopting tax increment financing for same. The TIF V encompasses the area east of I-74 and located along East Main Street. The TIF V district will City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us viii has a life of 23 years in accordance with state statute. The establishment of the TIF V district plays a crucial role in providing redevelopment incentives for the affected area and to induce additional highway commercial development. The purpose of the TIF programs includes the following: 1) to stabilize property values in the proposed district, 2) to induce redevelopment of dilapidated, obsolescent or severely limited parcels, 3) to provide necessary public infrastructure and facilities to accommodate development, and 4) to increase the value of properties within the TIF through the above activities. In August 2009, the City successfully applied for a twenty-year, zero percent, $1.1 million public water supply loan with one-half of the loan being funded under the American Recovery and Reinvestment Act of 2009 (ARRA) and with only one-half of the ARRA funds needing to be repaid. The work funded by the loan and stimulus funds included flood proofing existing structures at the City’s water production facilities along the Mississippi River near Oquawka by raising structures, waterproofing, and adding flood doors and sheet piling to protect the facilities. In 2011, the construction of a water treatment plant in Oquawka, Illinois was completed. The estimated $18 million construction project was funded through two bond issuances; $10 million of general obligation bonds sold in December 2007 and $10 million of revenue bonds sold in November 2008 with both bond issues being refunded for savings purposes in 2015 and 2017, respectively. In order to pay the annual debt service payment for these two bond issuances, the Water Fund must have water rates established to cover the principal and interest costs, approximately $1.3 million, for each year. The facilities in Oquawka include filters, water contact storage tanks, well pumps, increased capacity of the chlorination system, and an overall increase in capacity to 12 million gallons per day of total production. The improvements provide finished water through the City’s pipeline which greatly benefits the existing transmission pipeline and treatment process and allows the City to be a more regional provider of finished water. In December 2011, the City Council approved an ordinance which would establish the Simplified Municipal Telecommunications Tax from 2% to 5%. The increase in the tax is utilized to assist in the funding of the 9-1-1 operations. In 2013, the City Council approved the creation of a Business Development District (BDD). The BDD was created to assist with funding public infrastructure required for the Gale Village subdivision on North Seminary Street, near the U.S. 34 interchange. A BDD is a special taxing district, authorized to undertake certain public improvements to be financed through the issuance of notes or bonds that are, in turn, retired by the levy of a sales tax within the geographic boundaries of the district. In this case the proposed tax would be a one percent sales tax and a one percent hotel tax applied within the district. Prior to creation of the BDD, the cost to upgrade existing infrastructure and build new infrastructure sufficient to support new development created a financial burden that deterred growth in that area. The BDD will allow for public improvements to take place and the area within the BDD will be more attractive for future development which would increase the city’s tax base. In 2013, the City Council approved the establishment of the Galesburg Promise which is a program to provide scholarships for the Galesburg students to attend Carl Sandburg College. The purpose of the program is to keep young people in the community and increase the educational level of our workforce. A skilled workforce is essential to attract new business and provide workers for existing businesses to grow and expand. In addition, a significant number of students attending Community Unit School District 205 come from homes that have income levels at or below the poverty. Finally, the program serves as a motivator for youth to complete high school and be confident that they will have access to an opportunity at Carl Sandburg College. Funds for the program come from public and private sources with the City’s portion coming from a portion of the generated hotel/motel tax. In 2016, the City Council improved an increase in the City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us ix hotel/motel tax, effective January 1, 2017, with the additional revenue going to the Galesburg Promise Program. An account is established at the Galesburg Community Foundation to receive, invest, and disburse the funds. A governing board of City, Carl Sandburg College and District 205 members oversee operations and report to the participating institutions. In 2014, a public-private partnership for economic development was created. The City Council approved the agreement to work with an executive director and board of directors for the entity with the aim of growing jobs and retaining business, locally. The partnership is a valuable resource for new and existing companies that are interested in pursuing business opportunities in the Galesburg area. In 2015, the City Council approved an electric and natural gas utility tax to fund capital improvements and infrastructure. The utility tax went into effect on January 1, 2016. A portion of the tax is used to fund general obligation bonds to pay for various capital improvement projects that will be completed throughout the community. In 2016, the City Council authorized the issuance of approximately $10 million in general obligation bonds to cover various capital and infrastructure projects completed within the city. A portion of the utility tax is utilized to fund the bonds for the capital projects. The debt was structured as a 20-year issuance with a final payoff in 2035. The City plans to abate property taxes on the debt. In 2016, the City was successful in applying for a $4 million forgivable loan from the IEPA to replace a portion of the privately-owned lead line water services. The replacement of the lead lines was completed by a high priority-based selection on various criteria and by application of property owners to participate in the replacement program. The replacement of privately-owned lead line services began in 2017 and will continue throughout the years. Phase I of the project replaced 499 lead service lines. In 2018, the City Council approved Phase II of the replacement of lead water service lines financed through a $2 million forgivable loan from the IEPA Public Water Supply Loan Program. The second group of addresses were selected with the same criteria as Phase I, prioritizing all homes that exceeded the EPA action level of 15 ppb when tested, low to moderate income homes in low to moderate income neighborhoods identified in the 2010 census. In 2019, the City Council approved Phase III of the replacement of lead water service lines financed through a $2 million forgivable loan. In 2020, the City Council approved Phase IV of the replacement of lead water service lines through the forgivable loan program in the amount of $2 million. In 2021, Phase V of the replacement of lead service water lines was completed. Through the five phases, in total, the City has replaced a total of 2,650 lead service lines. In 2019, Public Act 101-0027 legalized the sale, possession and use of cannabis for recreational purposes by adults over age 21 starting January 1, 2020. It allows municipalities to adopt zoning rules for cannabis related businesses. In 2019, the City Council approved a 3% use tax that will be utilized to assist in providing services to the citizens of the community. This tax is collected by the Illinois Department of Revenue and remitted to the City. In order to promote tourism, in December 2019, the City Council approved an agreement with the Galesburg Tourism and Visitors Bureau. The group incorporated and undertook the necessary steps to receive grant funding from the state. The group has a nine-member board which includes the city manager and the mayor. In 2019, the City, in partnership with a solar development partner, built a 1.375 Mega Watt solar farm at the water treatment facility located in Oquawka, Illinois. The array went online in March 2020. The solar development partner paid for the cost of the construction, as well as covers the City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us x cost of operation of the solar facility and sells the City power at a discounted rate. Under the Long-Term Renewable Resource Procurement Plan, the solar development partner receives renewable energy credits for the power produced from the site, which will offset a large portion of the construction and operation costs for the project. This project is expected to save the City approximately $1.7 million over the life of the contract (twenty-five years) and $3.8 million if the City elects to renew the contract for an additional twenty-year term. In 2020, the Galesburg Transit Corporation was dissolved, and the assets were turned over to the City to allow the City to manage and operate the fixed route transit operation for the community. By combining the fixed route bus services with the handivan services, the City realizes increased responsiveness and accountability, better utilization of fleet resources and maintenance capacities and eliminated duplicate administrative services. In 2020, the City contracted the professional services of a firm to conduct a water rate study for the Water Department. Under the agreement, the firm would provide information on topics such as a review of the existing water rates and develop a recommended rate structure, develop a long- term financial plan and review operating and maintenance costs including a review of the administrative overhead. Also, in 2020, The City Council approved a land lease with the National Stearman Foundation to provide a permanent home for a facility for the National Stearman Fly-In at the Galesburg Municipal Airport. In 2021, the City completed the construction of the Street Division building which includes inside storage and an office area. The former Street division building was also renovated and houses the Traffic and Electrical operations. Also in 2021, the Street Division converted the remaining City-owned parking lot lights to LED. Energy aggregation was approved by the citizens of Galesburg with the election in November 2012. For historical purposes, in 2016, the City Council approved a 24-month agreement for municipal aggregation of 100 percent renewable electric supply in the amount of $0.05635/kwh. In 2018, the City Council approved a 36-month agreement with a rate of $0.04921/kwh with 100% renewable energy for year one and $0.04912 for years two and three. In 2021, a 36-month agreement was approved for 100% renewable energy at a rate of $.05499/kWh. Since 2010, the City has worked with a consultant to bid out City electricity in order to ensure the City is receiving competitive rates from reliable energy suppliers for its own municipal use. The prior two agreements expired on September 30, 2016 and September 30, 2018 for 100 percent renewable energy at the cost of $0.04389/kWh and $0.05366/kWh, respectively. The contract, approved in 2018, for 36-months was for renewable energy at the cost of $0.04486/kWh. In 2021, the City Council approved a 24-month agreement for standard energy at a rate of $.05478/kWh. Relevant financial policies The City’s Investment Policy is presented and approved on an annual basis for City Council’s review. The goal of the City management is to have 100% of its idle funds invested at all times in interest bearing accounts. This goal will ensure City management is using the available funds to their maximum. The Investment Policy states that all available funds are managed and invested with three primary objectives listed in priority order: safety, liquidity and return on investment. Investment opportunities are limited by the parameters found in Illinois Statutes 30ILCS235. The prudent person standard is used in managing the City’s overall portfolio. Each year the City’s Financial Policies are reviewed and updated where necessary to consider changes in GAAP, Government Audit Standards, and the City’s budget process. The financial policies include a definition of the financial reporting entity, measurement focus and basis of City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us xi accounting, operating revenue policies, operating expense policies, balance sheet policies, budget policies, capital improvement policies, vehicle replacement plan policies, building repair and maintenance plan policies, computer replacement plan policies, debt policies, federal funding in relation to OMB Guidance, pension policies, risk management policies, economic development fund and GASB 34. The Council annually approves the financial policies to ensure funds are spent and managed in the most cost-effective manner based on the services provided while ensuring the financial records are maintained in accordance with GAAP, Government Auditing Standards and state and federal laws. During the annual budget process, the City staff will review and modify user fees to recover the necessary costs associated with issuing and administering various services. Such fees include licenses, fines, permits and user fees. The recommended fee changes are provided to City Council for consideration. If approved by Council, the revenue changes are incorporated into the City’s annual budget. Major Initiatives Galesburg is a great place to work, live and raise a family. The City of Galesburg is dedicated to constantly improving the delivery of its services thereby enhancing the quality of life for its residents and the operating environment for its businesses. Among the City’s more significant accomplishments in 2021 were the following: • Approved the replacement of additional privately owned lead service lines. The scope of this fifth phase of the project is to replace 500 lead water service lines. • Converted the remaining City-owned parking lot lights to LED • The completion the reconstruction of the South Seminary Street project. • The reconstruction of North Kellogg Street • Applied for grants for Safe Routes to School sidewalks near Lombard and King Schools as well as Rebuild Downtowns and Main Street grants • Began the utilization of iWorQ for community development purposes to provide a more efficient process by using mobile and internet capabilities. • The City awarded funds from the IHDA Single Family Rehabilitation program to low income homeowners to repair or replace costly maintenance home issues or health and safety hazards present in the homes. • Para-transit entered into an agreement with W.I.A.A.A. to provide transportation to individuals 60 and older in need of medical transportation. This agreement has allowed patrons to have reliable transportation to and from medically necessary appointments in Peoria, Illinois. • Eight businesses benefited from Enterprise Zone incentives. • Contributed over $840,000 in TIF assistance for projects valued at $3.36 million. • The City Council approved façade redevelopment assistance of over $305,000 and over $145,000 was provided from the Downtown Council for projects valued at $1,009840. • Installed a vault-style bathroom at the Lake Storey west boat ramp through an IDNR grant. • Installed kayak launches at Lake Storey beach, the east boast ramp, and Allison campground. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Galesburg for its annual comprehensive financial report for the fiscal year ended December 31, 2020. This was the twenty-sixth consecutive fiscal year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable City Hall 55 W. Tompkins Street Galesburg, IL 61401 309-343-4181 www.ci.galesburg.il.us and efficiently organized annual comprehensive financial report. This report must satisfy both general 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 we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the finance department and all other offices that provided assistance and support throughout the preparation of this report. We extend our appreciation to everyone who assisted in this effort. I would also like to thank the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Galesburg’s finances. Respectfully submitted, Gloria Osborn Director of Finance and Information Systems xii Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Galesburg Illinois For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 Executive Director/CEO xiii CITY OF GALESBURG Organizational Chart Operating Under Council – Manager Government Since 1957 CITIZENS OF GALESBURG CITY CLERK MAYOR AND COUNCIL CITY MANAGER POLICE DEPARTMENT Field Operations Patrol Investigation Animal Control (Contracted) Staff and Services 911 Information Systems Evidence PUBLIC WORKS Streets Engineering Water Garage COMMUNITY DEVELOPMENT Planning Housing Transit Refuse (Contracted) Economic Development (partnership w/ KCAP) PARKS AND RECREATION Park Facilities Recreation Programs Bunker Links Golf Course Airport Linwood Cemetery Forestry FIRE DEPARTMENT Fire Suppression & Rescue Fire Prevention Emergency Management (Knox County) FINANCE Information Systems Purchasing Accounting Customer Service Payroll Utility Billing Budgeting ADMINISTRATION Human Resources/ Risk Management Benefits Administration Legal xiv xv City of Galesburg, Illinois Elected and Appointed City Officials Year Ended December 31, 2021 Elected Officials Peter Schwartzman Mayor Council Members Bradley Hix, First Ward Wayne Dennis, Second Ward Kevin Wallace, Third Ward Dwight White, Fourth Ward Jaclyn Smith-Esters, Fifth Ward Sarah Davis, Sixth Ward Larry Cox, Seventh Ward Kelli Bennewitz City Clerk Gloria Osborn City Treasurer Appointed Officials Todd Thompson City Manager Department Directors Wayne Carl, Director of Public Works Bradley Nolden, City Attorney/Administrative Services Director Gloria Osborn, Director of Finance and Information Systems Tony Oligney-Estill, Director of Parks and Recreation Steve Gugliotta, Director of Community Development Russ Idle, Police Chief Randy Hovind, Fire Chief Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP Independent Auditors' Report To the Mayor and City Council of City of Galesburg, Illinois Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Galesburg (the City), as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City as of December 31, 2021 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. We did not audit the financial statements of Town of the City of Galesburg, which represents 1 percent, 8 percent, and 1 percent, respectively, of the assets/deferred outflows of resources, net position, and revenues of the governmental activities and 2 percent, 2 percent, and 3 percent, respectively, of the assets/deferred outflows of resources, fund balances/net position, and revenues/additions of the aggregate remaining fund information. W e also did not audit the financial statements of the Galesburg Public Library Foundation, which represents 35 percent, 64 percent, and 34 percent, respectively, of the assets/deferred outflows of resources, net position, and revenues of the discretely presented component unit. Those statements were audited by other auditors, whose report has been furnished to us, and our opinions, insofar as it relates to the amounts included for the Town of the City of Galesburg and the Galesburg Public Library Foundation are based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of Am erica (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (GAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. W e believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial statements of the Town of the City of Galesburg and the Galesburg Public Library Foundation were not audited in accordance with Government Auditing Standards. 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. 1 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that rise substantial doubt about the City'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. Auditors' 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 auditors' 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 GAAS and GAS 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 GAAS and GAS, 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 City'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 City'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 required supplementary information 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. W e 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. W e 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. 2 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The supplementary informationas listed in the table of contents is presented for purposes of additional analysis and is 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, the supplementary information is 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. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditors' 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 24, 2022 on our consideration of the City'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 solely 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 City'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 City's internal control over financial reporting and compliance. Oak Brook, Illinois June 24, 2022 3 City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 4 It is an honor to present to you the financial picture of the City of Galesburg, Illinois (the "City"). We offer readers of the financial statements this narrative overview and analysis of the financial activities of the City for the year ended December 31, 2021. We encourage readers to consider the information presented herein in conjunction with the transmittal letter found in the introductory section and the basic financial statements to enhance their understanding of the City’s financial performance. Certain comparative information between the current year and the prior is required to be presented in the Management’s Discussion and Analysis (the “MD&A”). Financial Highlights > The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $54.0 million (net position). > In total, net position increased by $1.3 million. > As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $46.7 million, an increase of $4.8 million in comparison with the prior year. Approximately $11.0 million is available for spending at the government’s discretion (unassigned fund balance). > General revenues accounted for $36.3 million in revenue or 74 percent of all governmental revenues. Program specific revenues in the form of charges for services and fees and grants accounted for $12.8 million or 26 percent of total governmental revenues of $49.1 million. > The City had $49.1 million in expenses related to government activities. However, only $12.8 million of these expenses were offset by program specific charges and grants. > At the end of the current fiscal year, unassigned fund balance for the General Fund was $12.3 million, or 49.5 percent of total General Fund expenditures. > The City’s total long-term debt, excluding compensated absences, net pension liability, and net OPEB liability, decreased by $1.7 million during the current year to $22.5 million. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The basic financial statements are comprised of three components: > Government-wide financial statements, > Fund financial statements, and > Notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business, and are reported using the accrual basis of accounting and economic resources measurement focus. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the fiscal year being reported. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 5 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, economic development, public safety, public works, and culture, education, and recreation. The government-wide financial statements include the funds of the City (primary government) and an organization for which the City is accountable (Galesburg Public Library, a discretely presented component unit). Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary and fiduciary funds. Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements and are reported using the modified accrual basis of accounting and current financial resources measurement focus. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources; as well as, on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a City’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 5 major 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, Economic Development Fund, Parks and Recreation Fund, Grants Fund, and Public Transportation Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining schedules elsewhere in this report. The City adopts an annual budget for each of the major funds listed above. A budgetary comparison statement has been provided for each major fund to demonstrate compliance with this budget. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 6 Proprietary funds The City maintains two different types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business type activities in the government–wide financial statements. The City utilizes enterprise funds to account for its water utility and refuse services. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses an internal service fund to account for liability insurance. Because this service predominantly benefits governmental rather than business-type functions, it has 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 proprietary fund financial statements provide separate information for the Water Fund and the Refuse Fund. Conversely, the internal service fund is combined into a single, aggregated presentation in the proprietary fund financial statements. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that for the government-wide financial statements. Notes to basic financial statements The notes to the financial statements 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 concerning the City’s pensions and other post-employment benefits. Supplementary schedules include combining and individual fund schedules of all non-major funds and Fiduciary Funds. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 7 Government-Wide Financial Analysis Table 1 Condensed Statements of Net Position (in millions of dollars) Governmental Activities Business-Type Activities Total 2021 2020 Change 2021 2020 Change 2021 2020 Change Assets Current and other assets $ 65.6 $ 58.5 12.1% $ 13.9 $ 13.8 0.7% $ 79.5 $ 72.3 10.0% Capital assets 79.7 79.6 0.1% 34.9 34.9 -% 114.6 114.5 0.1% Total assets 145.3 138.1 5.2% 48.8 48.7 0.2% 194.1 186.8 3.9% Deferred outflows of resources Deferred outflows related to pensions and OPEB 27.6 31.3 (11.8)% 0.7 0.8 (12.5)% 28.3 32.1 (11.8)% Deferred charge on refunding - - -% 0.8 0.9 (11.1)% 0.8 0.9 (11.1)% Total deferred outflows of resources 27.6 31.3 (11.8)% 1.5 1.7 (11.8)% 29.1 33.0 (11.8)% Liabilities Long-term liabilities 118.3 125.5 (5.7)% 14.8 16.7 (11.4)% 133.1 142.2 -6.4% Other liabilities 5.6 3.1 80.6% 3.0 3.1 -3.2% 8.6 6.2 38.7% Total liabilities 123.9 128.6 (3.7)% 17.8 19.8 (10.1)% 141.7 148.4 -4.5% Deferred inflows of resources Property taxes levied for future periods 9.5 9.6 (1.0)% - - -% 9.5 9.6 -1.0% Deferred inflows related to pensions and OPEB 16.8 8.4 100.0% 1.2 0.7 71.4% 18.0 9.1 97.8% Total deferred inflows of resources 26.3 18.0 46.1% 1.2 0.7 71.4% 27.5 18.7 47.1% Net position Net investment in capital assets 71.6 70.8 1.1% 22.4 21.5 4.2% 94.0 92.3 1.8% Restricted 8.6 8.5 1.2% - - -% 8.6 8.5 1.2% Unrestricted (57.5) (56.5) 1.8% 8.9 8.4 6.0% (48.6) (48.1) 0.1% Total net position $ 22.7 $ 22.8 (0.4)% $ 31.3 $ 29.9 4.7% $ 54.0 $ 52.7 2.5% Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net results of activities – which will impact (increase/decrease) current assets and unrestricted net position. Borrowing for capital – which will increase current assets and long-term debt. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 8 Spending borrowed proceeds on new capital – which will: (a) reduce current assets and increase capital assets; and, (b) increase capital assets and long-term debt, which will not change the net investment in capital assets. Spending of non-borrowed current assets on new capital – which will: (a) reduce current assets and increase capital assets; and, (b) will reduce unrestricted net position and increase net investment in capital assets. Principal payment on debt – which will: (a) reduce current assets and reduce long-term debt; and, (b) reduce unrestricted net position and increase net investment in capital assets. Reduction of capital assets through depreciation – which will reduce capital assets and net investment in capital assets. Current Year Impacts As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, total net position increased by $1.3 million from $52.7 million to $54.0 million. The City's total assets and deferred outflows equal $223.2 million. The City's total liabilities and deferred inflows equal $169.2 million. By far the largest portion of the City’s net position is its investment in capital assets. This consists of land, buildings, machinery, equipment and infrastructure less depreciation and any related outstanding debt used to acquire these assets. The City uses these capital assets to provide services to the residents; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted 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. A restricted portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The governmental activities unrestricted balance had a deficit of $57.5 million in 2021 as a result of recording the net pension liabilities for IMRF, Police, and Firefighters' pension plans and the net OPEB liability. The unrestricted balance for business-type activities of $8.9 million may be used to meet the ongoing City obligations to their citizens and creditors. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 9 Table 2 Condensed Statements of Activities (in millions of dollars) Governmental Activities Business-Type Activities Total 2021 2020 Change 2021 2020 Change 2021 2020 Change Revenues Program revenues Charges for services $ 6.2 $ 5.0 24.0% $ 9.6 $ 9.9 -3.0% $ 15.8 $ 14.9 6.0% Operating grants and contributions 5.8 6.6 -12.1% - - -% 5.8 6.6 -12.1% Capital grants and contributions 0.8 1.5 -46.7% - - -% 0.8 1.5 -46.7% General revenues Property taxes 9.6 9.7 -1.0% - - -% 9.6 9.7 -1.0% Other taxes 25.8 21.5 20.0% - - -% 25.8 21.5 20.0% Other general revenues 0.9 1.3 -30.8% - 0.1 -100.0% 0.9 1.4 -35.7% Total revenues 49.1 45.6 7.7% 9.6 10.0 -4.0% 58.7 55.6 5.6% Expenses General government 12.2 11.6 5.2% - - -% 12.2 11.6 5.2% Economic development 1.8 2.1 -14.3% - - -% 1.8 2.1 -14.3% Public safety 24.5 26.3 -6.8% - - -% 24.5 26.3 -6.8% Public works 6.5 6.3 3.2% - - -% 6.5 6.3 3.2% Culture, education, and recreation 3.9 4.6 -15.2% - - -% 3.9 4.6 -15.2% Interest and fiscal charges 0.3 0.3 -% - - -% 0.3 0.3 -% Water - - -% 5.4 6.4 -15.6% 5.4 6.4 -15.6% Refuse - - -% 2.8 2.7 3.7% 2.8 2.7 3.7% Total expenses 49.2 51.2 -3.9% 8.2 9.1 -9.9% 57.4 60.3 -4.8% Change in net position (0.1) (5.6) -98.2% 1.4 0.9 55.6% 1.3 (4.7) -127.7% Net position, beginning of year 22.8 28.4 -19.7% 29.9 29.0 3.1% 52.7 57.4 -8.2% Net position end of year $ 22.7 $ 22.8 -0.4% $ 31.3 $ 29.9 4.7% $ 54.0 $ 52.7 2.5% Table 2 highlights the City’s revenues and expenses for the fiscal years ended December 31, 2021 and 2020. These two main components are subtracted to yield the change in net position. This table utilizes the full accrual method. Normal Impacts There are eight basic (normal) impacts that will affect the comparability of the revenues and expenses on the Statement of Activities summary presentation. Revenues Economic condition – which can reflect a declining, stable or growing economic environment, and has substantial impact on state sales, replacement and hotel/motel tax revenue; as well as, public spending habits for building permits, elective user fees, and volumes of consumption. Increase/decrease in City approved rates – while certain tax rates are set by statute, the City has significant authority to impose and periodically increase/decrease rates (water, home rule sales tax, etc.). City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 10 Changing patterns in intergovernmental and grant revenue (both recurring and non-recurring) – certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring grants are less predictable and often distorting in their impact on year to year comparisons. Market impacts on investment income – the City’s investments may be affected by market conditions causing investment income to increase/decrease. Expenses Introduction of new programs – within the functional expense categories (general government, economic development, public safety, public works, and culture, education, and recreation), individual programs may be added or deleted to meet changing community needs. Change in authorized personnel – changes in service demand may cause the City to increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent the largest operating cost of the City. Salary increases (annual adjustments and merit) – the ability to attract and retain human and intellectual resources requires the City to strive to approach a competitive salary range position in the marketplace. Inflation – while overall inflation appears to be reasonably modest, the City is a major consumer of certain commodities such as supplies, fuel, and parts. Some functions may experience unusual commodity specific increases. Current Year Impacts The Governmental Activities decreased the City's net position by $0.1 million. Key elements contributing to this change are as follows: Governmental Activities City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 11 Revenues Revenues are divided into two major components: program revenue and general revenue. Program revenue is defined as charges for sales and services, operating grants and contributions and capital grants and contributions. General revenue includes taxes, investment income and other unrestricted revenue sources. The City experienced an increase of 7.7 percent in revenue due to an increase in various state-shared tax revenues and operating grants and contributions from state and federal agencies. Expenses The City’s overall expenses in the current fiscal year increased and resulted in a decrease in net position to $22.7 million compared to $22.8 million in the prior fiscal year. Overall, the City's financial position has not improved since the prior fiscal year. Financial Analysis of the City’s Funds The fund balance of the City’s General Fund of $13.6 million, an increase of $1.7 million from 2020. For more information, see the General Fund Budgetary Highlights section. The Economic Development Fund had an ending fund balance of $11.6 million, an increase of $0.2 million from 2020. The Parks and Recreation Fund had an ending fund balance of $2.4 million, an increase of $0.4 million from 2020. The Grants Fund had an ending fund deficit of ($0.2) million, a decrease of $0.1 million from 2020. The Public Transportation Fund had an ending fund deficit of ($0.5) million, an increase of $0.6 million from 2020. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 12 General Fund Budgetary Highlights Overall, General Fund revenue was slightly more than the final budget and expenditures were $0.7 million less than the final budget. Specific highlights of General Fund revenue and expenditures are as follows: > Charges for service revenues were $0.1 million more than the final budget. > Contracts and subsidies expenditures were $0.4 million more than the final budget. In 2021, total expenditures increased $1.7 million from the original budget to the final amended budget. These budget increases were mostly in the contracts and subsidies. Total revenues increased $5.3 million from the original budget to the final amended budget. Capital Assets and Debt Administration Capital assets By the end of 2021, the City had compiled a total investment of $177.5 million ($114.6 million net of accumulated depreciation) in a broad range of capital assets including land, construction-in-progress, land improvements, buildings and improvements, machinery and equipment, and infrastructure. Total depreciation expense for the year was $4.0 million. More detailed information about capital assets can be found in Note 3 of the basic financial statements. Major capital asset events during the year ended December 31, 2021 included the renovation of the new Street Department facility in the amount of $1.7 million; the reconstruction of Kellogg Street in the amount of $0.7 million; and the installation of the new campground restroom and bathhouse building in the amount of $0.2 million. Table 3 Capital Assets (net of depreciation) (in millions of dollars) Governmental Activities Business-Type Activities Total 2021 2020 Change 2021 2020 Change 2021 2020 Change Land $ 6.4 $ 6.3 1.6% $ 0.7 $ 0.7 -% $ 7.1 $ 7.0 1.4% Construction in progress 1.9 1.8 5.6% 1.3 0.3 333.3% 3.2 2.1 52.4% Land improvements 2.0 2.1 -4.8% - - -% 2.0 2.1 -4.8% Buildings and improvements 10.8 9.6 12.5% 19.5 19.9 -2.0% 30.3 29.5 2.7% Equipment 5.4 6.0 -10.0% 1.5 1.7 -11.8% 6.9 7.7 -10.4% Infrastructure 53.2 53.8 -1.1% 11.9 12.3 -3.3% 65.1 66.1 -1.5% Total $ 79.7 $ 79.6 0.1% $ 34.9 $ 34.9 -% $ 114.6 $ 114.5 0.1% Debt Administration The table below summaries the City’s bonded and similar indebtedness. As of December 31, 2021, the City had a total of $22.5 million of long-term debt outstanding (excluding compensated absences, net pension liability, and net OPEB liability). Of this amount, $22.1 million was in the form of general obligation bonds backed by the full faith and credit of the City government. More detailed information about debt administration can be found in Note 3 of the basic financial statements. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 13 Table 4 Long-Term Debt (in millions of dollars) Governmental Activities Business-Type Activities Total 2021 2020 Change 2021 2020 Change 2021 2020 Change General obligation bonds $ 9.2 $ 10.0 -8.0% $ 12.9 $ 13.8 -6.5% $ 22.1 $ 23.8 -7.1% Notes payable - - -% 0.4 0.4 -% 0.4 0.4 -% Total $ 9.2 $ 10.0 -8.0% $ 13.3 $ 14.2 -6.3% $ 22.5 $ 24.2 -7.0% Factors Bearing on the City’s Future > Over the years, one of the City’s strengths has been its strong financial condition and good financial management which is proven by good reserves and strong bond ratings. > Continuing to provide the same types and levels of service is a challenge that continues to occur with the available staff and resources. > Health care costs and personnel costs which make up a significant portion of the City’s operating costs continue to rise. The three union contracts, AFSCME, PSEO and IAFF, expired on December 31, 2023. > The three-year union contracts for AFSCME, PSEO and IAFF bargaining groups, which all expired on December 31, 2023, provided an annual range of two percent to two and one-half percent wage increases during fiscal years 2022 and an annual range of two and one-quarter percent to two and one-half percent wage increases during fiscal year 2023 for the classifications within the bargaining groups. > To battle the rising cost in health care, in 2015, City employees began the move from a self-insured health plan to a third party administered health plan which allows the City to budget a fixed amount for health care thus eliminating the need to fund any losses incurred by a self-insured health fund. > Any potential reduction in state shared revenue due to the State of Illinois’ financial condition may present significant budgetary challenges if the State legislature elects to reduce any of the shared funds toward solving the State’s budget issue. > In March 2020, the novel coronavirus (COVID 19) outbreak was declared a global pandemic. The unemployment rate for the City of Galesburg, for 2021, decreased to 6.6 percent. This is a decrease from a rate of 8.6 percent a year ago. This compares slightly higher to the state’s average unemployment rate of 5.1 percent. > The City continues to develop a budget based on conservative estimates in revenues. After the influx in recent fiscal years of federal supplemental funds (provided to residents because of the pandemic) are exhausted, modest revenue growth will continue to impact governmental activity revenues and provide significant budget challenges for administration. Although revenue growth will be limited, the 2022 budget will sustain City services for another year. > In 2021, new businesses opened in Galesburg, such as Nature's Treatment, Guacamole Grill, La Cantinita, and Lenny's Grill & Subs. These new businesses will provide employment and future shopping options for residents along with sales tax and property tax benefits for the City. > In 2022, land for commercial properties continues to be available to develop in the Gale Village subdivision. After the commercial property is developed, the next step of the plan is to develop residential property in the area. City of Galesburg Management's Discussion and Analysis December 31, 2021 (Unaudited) 14 > In 2022, land continues to be available for development in the relatively new residential subdivision near Lincoln Park. The homes will provide more housing opportunities for residents and, also, provide property tax benefits for the City. > In 2022, the City will be in its fourth year of a 5 X 5 housing program with hopes to make an impact on blighted city buildings and housing. The City's goal is to assist with work on 500 homes over a five-year period that ends in 2023. > In 2022, in the final phase, Phase VI of the lead service line replacement program, the City will assist approximately 450 to 500 additional property owners in replacing a portion of lead water service lines by utilizing funds from a forgivable loan from the IEPA. Through forgivable loans from the IEPA, the City has replaced over 2,500 lead service lines between 2016 and 2021. All of these factors were considered in preparing the City of Galesburg’s budget for the 2022 fiscal year. The City will continue to monitor and evaluate the impact of the COVID-19 pandemic, including business disruption, market volatility, and city policies to take steps to mitigate the impact of the pandemic to our citizens and employees. Requests for Information This financial report is designed to provide the City’s citizens, taxpayers, and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If you have questions about this report, need additional financial information, contact the Finance Department: Gloria Osborn City of Galesburg 55 West Tompkins Street Galesburg, Illinois 61401 B A S I C F I N A N C I A L S T A T E M E N T S 15 Component Unit Governmental Business-Type Galesburg Activities Activities Total Public Library Assets and Deferred Outflows of Resources Assets Cash and cash equivalents 37,368,527$ 10,147,906$ 47,516,433$ 5,246,050$ Investments 3,655,262 499,522 4,154,784 4,637,938 Receivables (net): Property tax receivable 9,464,670 - 9,464,670 1,635,355 Other taxes 1,937,420 - 1,937,420 - Accrued interest 6,599 449 7,048 - Accounts 2,239,935 2,635,127 4,875,062 16,991 Loans 2,418,688 - 2,418,688 - Net pension asset 225,852 - 225,852 - Due from other governmental units 3,377,713 - 3,377,713 313 Internal balances (356,074) 356,074 - - Advances to component unit 512,454 - 512,454 - Inventories 51,370 126,446 177,816 - Prepaid items 987,681 56,254 1,043,935 32,315 Property held for resale 3,765,341 - 3,765,341 - Bond issuance insurance 19,098 13,525 32,623 - Capital assets: Capital assets not being depreciated 8,289,601 2,041,405 10,331,006 2,599,787 Capital assets being depreciated, net of depreciation 71,388,298 32,901,722 104,290,020 832,488 Total assets 145,352,435 48,778,430 194,130,865 15,001,237 Deferred Outflows of Resources Deferred outflows related to pensions 25,253,385 486,173 25,739,558 265,479 Deferred outflows related to OPEB 2,349,223 230,008 2,579,231 3,971 Deferred charge on refunding - 779,863 779,863 - Total deferred outflows of resources 27,602,608 1,496,044 29,098,652 269,450 Total assets and deferred outflows of resources 172,955,043$ 50,274,474$ 223,229,517$ 15,270,687$ City of Galesburg, Illinois Statement of Net Position December 31, 2021 Primary Government 16 Component Unit Governmental Business-Type Galesburg Activities Activities Total Public Library City of Galesburg, Illinois Statement of Net Position December 31, 2021 Primary Government Liabilities, Deferred Inflows of Resources, and Net Position Liabilities Accounts payable 2,558,170$ 752,434$ 3,310,604$ 177,464$ Accrued liabilities 560,908 29,779 590,687 16,644 Interest payable 797 22,336 23,133 - Payroll taxes payable - - - 344 Claims payable 170,000 - 170,000 - Due to other governmental units 10,822 1,142,553 1,153,375 514 Due to fiduciary funds 131,920 8,555 140,475 - Advances from primary government - - - 512,454 Deposits - 1,012,256 1,012,256 - Unearned revenues 2,189,080 190 2,189,270 1,546 Noncurrent liabilities: Due within one year 2,115,946 1,085,929 3,201,875 5,039,917 Due in more than one year 116,195,219 13,735,840 129,931,059 121,880 Total liabilities 123,932,862 17,789,872 141,722,734 5,870,763 Deferred Inflows of Resources Property taxes levied for future periods 9,464,670 - 9,464,670 1,635,355 Deferred inflows related to pensions 15,380,044 998,577 16,378,621 545,280 Deferred inflows related to OPEB 1,466,705 143,603 1,610,308 2,479 Total deferred inflows of resources 26,311,419 1,142,180 27,453,599 2,183,114 Net Position Net investment in capital assets 71,628,870 22,398,727 94,027,597 3,432,275 Restricted for: Motor fuel tax 2,378,353 - 2,378,353 - Economic development 746,507 - 746,507 - Special enforcement 472,586 - 472,586 - Foreign fire 131,429 - 131,429 - Infrastructure improvements 7,836 - 7,836 - TIF expenses 1,524,567 - 1,524,567 - General government 46,816 - 46,816 - Donations 168,842 - 168,842 - Pension benefits 225,852 - 225,852 - Cemetery 635,220 - 635,220 - Public works 815,698 - 815,698 - Town of the City 1,401,806 - 1,401,806 - Debt service 950 - 950 - Donor restricted, Foundation - - - 1,728,337 Unrestricted (57,474,570) 8,943,695 (48,530,875) 2,056,198 Total net position 22,710,762 31,342,422 54,053,184 7,216,810 Total liabilities, deferred inflows of resources and net position 172,955,043$ 50,274,474$ 223,229,517$ 15,270,687$ See notes to financial statements 17 Fees, Fines Operating Capital and Charges Grants and Grants and Functions/Programs Expenses for Services Contributions Contributions Primary Government Governmental activities: General government 12,231,634$ 3,436,233$ 5,683,340$ 125,379$ Economic development 1,737,407 19,853 - - Public safety 24,473,488 1,362,274 102,839 - Public works 6,522,596 475,806 2,584 710,749 Culture, education and recreation 3,849,239 868,407 - - Interest and fiscal charges 322,655 - - - Total governmental activities 49,137,019 6,162,573 5,788,763 836,128 Business type activities: Water 5,348,804 6,776,659 - - Refuse 2,794,057 2,812,322 - - Total business-type activities 8,142,861 9,588,981 - - Total primary government 57,279,880$ 15,751,554$ 5,788,763$ 836,128$ Component Unit Galesburg Public Library 1,917,004$ 4,528$ 136,834$ -$ General revenues: Taxes: Property tax Food and beverage tax Hotel/motel tax Local utility taxes City gas tax Other taxes Unrestricted intergovernmental revenue: State income and use tax Sales and home rule taxes Replacement tax Franchise fees Investment income Miscellaneous Total general revenues Change in net position Net position, beginning Net position, ending City of Galesburg, Illinois Statement of Activities Year Ended December 31, 2021 Program Revenues See notes to financial statements 18 Component Unit Governmental Business-type Galesburg Activities Activities Total Public Library (2,986,682)$ -$ (2,986,682)$ -$ (1,717,554) - (1,717,554) - (23,008,375) - (23,008,375) - (5,333,457) - (5,333,457) - (2,980,832) - (2,980,832) - (322,655) - (322,655) - (36,349,555) - (36,349,555) - - 1,427,855 1,427,855 - - 18,265 18,265 - - 1,446,120 1,446,120 - (36,349,555) 1,446,120 (34,903,435) - - - - (1,775,642) 9,570,695 - 9,570,695 1,571,836 1,755,978 - 1,755,978 - 739,677 - 739,677 - 2,366,807 - 2,366,807 - 678,317 - 678,317 - 937,583 - 937,583 - 5,507,912 - 5,507,912 - 11,947,870 - 11,947,870 - 1,890,111 - 1,890,111 40,000 385,366 - 385,366 - 137,747 24,742 162,489 496,011 344,623 1,104 345,727 607,915 36,262,686 25,846 36,288,532 2,715,762 (86,869) 1,471,966 1,385,097 940,120 22,797,631 29,870,456 52,668,087 6,276,690 22,710,762$ 31,342,422$ 54,053,184$ 7,216,810$ Primary Government Changes in Net Position Net (Expense) Revenue and See notes to financial statements 19 Economic Parks and General Development Recreation Grants Assets Cash and cash equivalents 11,136,174$ 4,089,449$ 2,057,387$ 2,175,941$ Investments 1,495,452 505,330 54,789 - Receivables (net): Property taxes 7,827,835 - 244,435 - Other taxes 1,286,997 299,077 338,956 - Accounts 341,185 183,850 2,599 - Accrued interest 1,080 5,181 71 - Loans - 2,418,688 - - Due from other governments 2,115,800 - 458,082 522,786 Due from other funds 1,158,576 230,815 8,721 - Inventory 51,370 - - - Prepaid items 360,194 1,001 41,406 - Property held for resale - 3,571,946 - - Advances to other funds 133,837 501,960 133,837 - Advances to component unit 512,454 - - - Total assets 26,420,954$ 11,807,297$ 3,340,283$ 2,698,727$ Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable 1,024,277$ 98,112$ 196,356$ 607,711$ Accrued liabilities 490,584 2,042 29,477 - Due to other governments 10,822 - - - Due to fiduciary funds 120,415 - 11,505 - Due to other funds 2,372,143 - 177,136 14,741 Advances from other funds - - - - Unearned revenue 10,211 4 31,601 2,054,744 Total liabilities 4,028,452 100,158 446,075 2,677,196 Deferred Inflows of Resources Unavailable revenue 980,664 108,792 241,153 206,613 Property taxes levied for future periods 7,827,835 - 244,435 - Total deferred inflows of resources 8,808,499 108,792 485,588 206,613 Fund Balances (Deficits) Nonspendable 1,057,855 1,001 41,406 - Restricted 12,795 746,507 137,988 - Committed 260,206 8,228,661 - - Assigned - 2,622,178 2,229,226 - Unassigned (deficit)12,253,147 - - (185,082) Total fund balances (deficits)13,584,003 11,598,347 2,408,620 (185,082) Total liabilities, deferred inflows of resources and fund balances 26,420,954$ 11,807,297$ 3,340,283$ 2,698,727$ City of Galesburg, Illinois December 31, 2021 Balance Sheet - Governmental Funds Major Funds See notes to financial statements 20 Nonmajor Total Public Governmental Governmental Transportation Funds Funds 90,741$ 16,475,851$ 36,025,543$ - 1,600,097 3,655,668 - 1,392,400 9,464,670 - 12,390 1,937,420 1,049,396 638,477 2,215,507 - 267 6,599 - - 2,418,688 - 281,045 3,377,713 - 2,544,299 3,942,411 - - 51,370 18,755 18,516 439,872 - 193,395 3,765,341 - 267,674 1,037,308 - - 512,454 1,158,892$ 23,424,411$ 68,850,564$ 24,422$ 536,834$ 2,487,712$ 22,680 14,930 559,713 - - 10,822 - - 131,920 1,107,394 270,652 3,942,066 - 1,037,308 1,037,308 1,720 83,930 2,182,210 1,156,216 1,943,654 10,351,751 517,693 245,556 2,300,471 - 1,392,400 9,464,670 517,693 1,637,956 11,765,141 18,755 620,635 1,739,652 - 6,831,201 7,728,491 - 3,049,808 11,538,675 - 9,908,946 14,760,350 (533,772) (567,789) 10,966,504 (515,017) 19,842,801 46,733,672 1,158,892$ 23,424,411$ 68,850,564$ See notes to financial statements 21 Total Fund Balances - Governmental Funds 46,733,672$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds: Capital assets 125,317,499$ Accumulated depreciation (45,639,600) 79,677,899 The net pension asset does not relate to current financial resources and is not reported in the governmental funds.225,852 Bond issuance insurance does not relate to current financial resources and is not reported in the governmental funds.19,098 Revenues collected after the City's availability period are reported as deferred inflows of resources in governmental funds, however these amounts have been reported as revenues in the Statement of Activities.2,300,471 Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.25,235,928 Deferred outflows of resources related to other postemployement benefits do not relate to current financial resources and are not reported in the governmental funds.2,349,223 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(15,344,187) Deferred inflows of resources related to other postemployement benefits do not relate to current financial resources and are not reported in the governmental funds.(1,466,705) Some liabilities reported in the Statement of Net Position do not require the use of current financial resources and therefore are not reported as liabilities in governmental funds. These activities consist of: Compensated absences (1,818,475) Accrued interest payable (797) Net pension liability (93,805,073) Net OPEB liability (13,459,926) General obligation bonds payable (9,055,000) Bond premium (168,874) (118,308,145) Internal service funds are reported in the statement of net position as governmental activities.1,287,656 Net Position of Governmental Activities 22,710,762$ City of Galesburg, Illinois Reconciliation of Governmental Funds Balance Sheet to Statement of Net Position December 31, 2021 See notes to financial statements 22 Economic Parks and General Development Recreation Grants Revenues Taxes 14,019,108$ 1,128,206$ 2,005,732$ -$ Charges for services 1,186,930 - 44,211 - Intergovernmental 12,481,424 - 1,930,807 3,158,604 Licenses and permits 387,349 - - - Fines and fees 404,069 - - - Use of money and property 510,165 57,263 893,937 1 Contributions - - - - Miscellaneous 47,412 - 45,807 - Total revenues 29,036,457 1,185,469 4,920,494 3,158,605 Expenditures Current: General government 4,710,054 - - 61,042 Economic development - 360,721 - - Public safety 17,445,459 - 130,781 275,213 Public works 2,650,046 - 569,179 - Culture and recreation - - 3,691,776 - Miscellaneous - 468,727 - 3,031,100 Debt service:- Principal - - - - Interest and fiscal charges - - - - Capital outlay 94,685 - - - Total expenditures 24,900,244 829,448 4,391,736 3,367,355 Excess (deficiency) of revenues over expenditures 4,136,213 356,021 528,758 (208,750) Other Financing Sources (Uses) Proceeds from the sale of assets 4,915 - - - Transfers in 6,633 197,304 8,707 124,774 Transfers out (2,492,890) (353,396) (159,539) - Total other financing sources (uses)(2,481,342) (156,092) (150,832) 124,774 Net change in fund balances 1,654,871 199,929 377,926 (83,976) Fund Balances (Deficits), Beginning 11,929,132 11,398,418 2,030,694 (101,106) Fund Balances (Deficits), Ending 13,584,003$ 11,598,347$ 2,408,620$ (185,082)$ City of Galesburg, Illinois Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31, 2021 Major Funds See notes to financial statements 23 Nonmajor Public Governmental Transportation Funds Total -$ 4,682,252$ 21,835,298$ - 39,522 1,270,663 2,694,972 2,824,966 23,090,773 - - 387,349 - 5,169 409,238 24,816 424,552 1,910,734 - 2,200 2,200 720 146,653 240,592 2,720,508 8,125,314 49,146,847 2,125,928 1,982,218 8,879,242 - 86,311 447,032 - 237,268 18,088,721 - 1,635,394 4,854,619 - - 3,691,776 - 749,191 4,249,018 - 735,000 735,000 - 345,182 345,182 - 2,992,038 3,086,723 2,125,928 8,762,602 44,377,313 594,580 (637,288) 4,769,534 - - 4,915 90 4,239,455 4,576,963 (10,369) (1,560,769) (4,576,963) (10,279) 2,678,686 4,915 584,301 2,041,398 4,774,449 (1,099,318) 17,801,403 41,959,223 (515,017)$ 19,842,801$ 46,733,672$ See notes to financial statements 24 Net change in total governmental fund balances 4,774,449$ Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report purchases of capital assets as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets. Capital expenditures 3,086,722$ Depreciation (2,898,036) Net book value of assets retired (63,227) Capital expenditures in excess of depreciation 125,459 Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements.(168,012) Some expenses in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Accrued interest on debt 32 Amortization of bond premiums 22,495 Amortization of bond insurance (2,424) Net pension liability 6,586,511 Net pension asset 142,435 Net OPEB liability (81,370) Deferred outflows of resources related to pensions (3,668,881) Deferred outflows of resources related to OPEB (38,123) Deferred inflows of resources related to pensions (8,495,615) Deferred inflows of resources related to OPEB 49,157 Compensated absences (94,935) (5,580,718) Repayment of principal on long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.735,000 Internal service funds are used by management to charge self insurance costs to individual funds. The change in net position of the internal service fund is reported with governmental activities.26,953 Change in net position of governmental activities (86,869)$ City of Galesburg, Illinois Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities Year Ended December 31, 2021 See notes to financial statements 25 Governmental Activities Internal Service Water Refuse Total Fund Assets and Deferred Outflows of Resources Assets Current assets: Cash and cash equivalents 9,464,590$ 683,316$ 10,147,906$ 1,342,578$ Investments 499,522 - 499,522 - Receivables (net): Accounts 2,153,464 481,663 2,635,127 24,428 Accrued interest 449 - 449 - Due from other funds 69 - 69 - Inventory 126,446 - 126,446 - Prepaid items 51,067 5,187 56,254 547,809 Total current assets 12,295,607 1,170,166 13,465,773 1,914,815 Noncurrent assets: Bond issuance insurance 13,525 - 13,525 - Capital assets not being depreciated 2,041,405 - 2,041,405 - Capital assets being depreciated 50,112,811 - 50,112,811 - Less accumulated depreciation (17,211,089) - (17,211,089) - Total noncurrent assets 34,956,652 - 34,956,652 - Total assets 47,252,259 1,170,166 48,422,425 1,914,815 Deferred Outflows of Resources Deferred outflows related to pensions 486,173 - 486,173 17,457 Deferred outflows related to OPEB 227,558 2,450 230,008 - Deferred charge on refunding 779,863 - 779,863 - Total deferred outflows of resources 1,493,594 2,450 1,496,044 17,457 Enterprise Funds City of Galesburg, Illinois Statement of Net Position Proprietary Funds December 31, 2021 See notes to financial statements 26 Governmental Activities Internal Service Water Refuse Total Fund Enterprise Funds City of Galesburg, Illinois Statement of Net Position Proprietary Funds December 31, 2021 Liabilities, Deferred Inflows of Resources, and Net Position Liabilities Current liabilities: Accounts payable 517,519$ 234,915$ 752,434$ 70,458$ Accrued liabilities 29,308 471 29,779 1,195 Claims payable - - - 170,000 Accrued interest payable 22,336 - 22,336 - Deposits 1,012,256 - 1,012,256 - Due to other governments 1,142,553 - 1,142,553 - Due to fiduciary funds 8,315 240 8,555 - Due to other funds 414 - 414 - Unearned revenue 190 - 190 6,870 General obligation bonds payable 900,000 - 900,000 - Notes payable 41,406 - 41,406 - Compensated absences 144,408 115 144,523 2,778 Total current liabilities 3,818,705 235,741 4,054,446 251,301 Noncurrent liabilities: General obligation bonds payable 11,955,524 - 11,955,524 - Notes payable 372,652 - 372,652 - Net pension liability 28,941 - 28,941 1,039 Net OPEB liability 1,303,797 14,038 1,317,835 - Compensated absences 60,888 - 60,888 - Total noncurrent liabilities 13,721,802 14,038 13,735,840 1,039 Total liabilities 17,540,507 249,779 17,790,286 252,340 Deferred Inflows of Resources Deferred inflows related to pensions 998,577 - 998,577 35,857 Deferred inflows related to OPEB 142,073 1,530 143,603 - Total deferred inflows of resources 1,140,650 1,530 1,142,180 35,857 Net Position Net investment in capital assets 22,398,727 - 22,398,727 - Unrestricted net position 7,665,969 921,307 8,587,276 1,644,075 Total net position 30,064,696$ 921,307$ 30,986,003 1,644,075 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds 356,419 (356,419) Net position business-type activities 31,342,422$ Net internal service funds reported in the statement of net position as governmental activities 1,287,656$ See notes to financial statements 27 Governmental Activities Internal Service Water Refuse Total Fund Operating Revenues Charges for services 6,776,659$ 2,812,322$ 9,588,981$ 986,885$ Miscellaneous 1,104 - 1,104 23,683 Total operating revenues 6,777,763 2,812,322 9,590,085 1,010,568 Operating Expenses Personnel services 1,769,138 39,703 1,808,841 65,535 Contractual services 1,545,274 2,749,322 4,294,596 619,086 Commodities 492,882 - 492,882 20 Insurance claims and changes in reserves - - - 295,128 Depreciation 1,065,131 - 1,065,131 - Other charges 20,714 5,032 25,746 - Total operating expenses 4,893,139 2,794,057 7,687,196 979,769 Operating income 1,884,624 18,265 1,902,889 30,799 Nonoperating Revenues (Expenses) Investment earnings 23,614 1,128 24,742 1,210 Interest expense (466,307) - (466,307) - Gain on sale of assets 5,586 - 5,586 - Total nonoperating revenues (expenses)(437,107) 1,128 (435,979) 1,210 Change in net position 1,447,517 19,393 1,466,910 32,009 Net Position, Beginning 28,617,179 901,914 29,519,093 1,612,066 Net Position, Ending 30,064,696$ 921,307$ 30,986,003$ 1,644,075$ Change in net position 1,466,910$ Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 5,056 Change in net position of business-type activities 1,471,966$ Enterprise Funds City of Galesburg, Illinois Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds Year Ended December 31, 2021 See notes to financial statements 28 Governmental Activities Internal Service Water Refuse Total Fund Cash Flows From Operating Activities Cash received from customers and users 6,654,589$ 2,716,313$ 9,370,902$ 59,634$ Cash received from interfund service - - - 945,380 Cash payments for goods and services (2,105,505) (2,715,302) (4,820,807) (1,056,512) Cash payments to employees (2,107,859) (36,752) (2,144,611) (75,796) Net cash provided/(used) by operating activities 2,441,225 (35,741) 2,405,484 (127,294) Cash Flows From Noncapital Financing Activities Payments from (to) nonservice interfund accounts 345 240 585 - Payments from (to) fiduciary funds 8,315 - 8,315 - Net cash provided/(used) in noncapital financing activities 8,660 240 8,900 - Cash Flows From Capital and Related Financing Activities Purchase of capital assets (1,252,730) - (1,252,730) - Interest paid on debt (464,745) - (464,745) - Principal payments on bonds (865,000) - (865,000) - Principal payments on notes (41,405) - (41,405) - Proceeds from sale of capital assets 5,586 - 5,586 - Net cash used in capital and related financing activities (2,618,294) - (2,618,294) - Cash Flows From Investing Activities Purchase of investments (499,522) - (499,522) - Income and dividends received 25,393 1,128 26,521 1,210 Net cash provided by (used in) investing activities (474,129) 1,128 (473,001) 1,210 Net increase (decrease) in cash (642,538) (34,373) (676,911) (126,084) Cash and Cash Equivalents, Beginning 10,107,128 717,689 10,824,817 1,468,662 Cash and Cash Equivalents, Ending 9,464,590$ 683,316$ 10,147,906$ 1,342,578$ City of Galesburg, Illinois Statement of Cash Flows Proprietary Funds Year Ended December 31, 2021 Business-Type Activities - Enterprise Funds See notes to financial statements 29 Governmental Activities Internal Service Water Refuse Total Fund City of Galesburg, Illinois Statement of Cash Flows Proprietary Funds Year Ended December 31, 2021 Business-Type Activities - Enterprise Funds Reconciliation of Operating Income to net Cash Provided By Operating Activities: Operating income (loss)1,884,624$ 18,265$ 1,902,889$ 30,799$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,065,131 - 1,065,131 - Change in operating assets and liabilities: Accounts receivable (123,281) (95,638) (218,919) (5,506) Inventory 13,546 - 13,546 - Prepaid items 5,129 577 5,706 (279,023) Bond issuance insurance 1,948 - 1,948 - Deferred outflows, pension 85,448 - 85,448 3,657 Deferred outflows, OPEB 9,849 (499) 9,350 - Accounts payable (191,265) 38,104 (153,161) 26,745 Deposits payable 32,524 - 32,524 - Accrued salaries 1,115 128 1,243 227 Due to other governments 91,483 - 91,483 - Claims payable - - - 110,000 Compensated absences (26,627) (71) (26,698) 698 Net pension liability (805,274) - (805,274) (29,775) Net OPEB liability (26,617) 3,102 (23,515) - Deferred inflows, pension 432,054 - 432,054 14,932 Deferred inflows, OPEB (8,669) 291 (8,378) - Unearned revenue 107 - 107 (48) Total adjustments 556,601 (54,006) 502,595 (158,093) Net Cash Provided (Used) By Operating Activities 2,441,225$ (35,741)$ 2,405,484$ (127,294)$ Noncash Capital and Related Financing Activities None See notes to financial statements 30 Pension Trust Funds Assets Cash and cash equivalents 4,785,070$ Investments: U.S. government and agency securities 9,353,571 Mutual funds 13,243,046 Common and preferred stock 5,995,533 Insurance contracts and annuities 24,207,418 Municipal bonds 53,505 Corporate bonds 8,305,298 Receivables: Accounts receivable 34,299 Accrued interest 71,101 Due from primary government 140,475 Total assets 66,189,316 Liabilities Accounts payable 567,687 Total liabilities 567,687 Net Position Restricted for OPEB 2,009,969 Restricted for retirement benefits 63,611,660 Total net position 65,621,629$ City of Galesburg, Illinois Statement of Fiduciary Net Position Fiduciary Funds December 31, 2021 See notes to financial statements 31 Pension Trust Funds Additions Contributions: Employer 5,844,390$ Plan member deposits 678,790 Total contributions 6,523,180 Investment earnings: Net appreciation in fair value of investments 5,007,313 Interest 1,163,891 Total investment earnings 6,171,204 Less investment expense 101,977 Net investment earnings 6,069,227 Miscellaneous: Other income 283 Total additions 12,592,690 Deductions Benefits 7,626,470 Administrative expenses 53,943 Total deductions 7,680,413 Change in net position 4,912,277 Net Position, Beginning 60,709,352 Net Position, Ending 65,621,629$ Year Ended December 31, 2021 City of Galesburg, Illinois Statement of Changes in Fiduciary Net Position Fiduciary Funds City of Galesburg Index to Notes to Financial Statements December 31, 2021 Page 1.Summary of Significant Accounting Policies 33 Reporting Entity 33 Government-W ide and Fund Financial Statements 34 Measurement Focus, Basis of Accounting and Financial Statement Presentation 37 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 38 Deposits and Investments 38 Receivables 41 Inventories and Prepaid Items 42 Capital Assets 42 Deferred Outflows of Resources 43 Compensated Absences 43 Long-Term Obligations 43 Deferred Inflows of Resources 44 Equity Classifications 44 Postemployment Benefits Other Than Pensions (OPEB)45 Property Held for Resale 45 2.Stewardship, Compliance and Accountability 46 Deficit Balances 46 3.Detailed Notes on All Funds 47 Deposits and Investments 47 Receivables 52 Capital Assets 54 Interfund Receivables/Payables, Advances and Transfers 56 Long-Term Obligations 58 Net Position/Fund Balances 61 Component Unit 63 4.Other Information 66 Employees' Retirement System 66 Risk Management 85 Commitments and Contingencies 86 Other Postemployment Benefits 86 Subsequent Event 90 Tax Increment Financing District 90 Tax Abatement 90 Effect of New Accounting Standards on Current-Period Financial Statements 92 32 City of Galesburg Notes to Financial Statements December 31, 2021 1.Summary of Significant Accounting Policies The City of Galesburg, Illinois (the City) was incorporated in 1857. The City is a home-rule municipality, under the 1970 Illinois Constitution, located in Knox County, Illinois. The City operates under a Mayor- Council form of government and provides the following services as authorized by its charter: public safety, streets, refuse collection, recreation and cultural events, community development and general administrative services. The accounting policies of the City of Galesburg, Illinois conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard- setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). Reporting Entity This report includes all of the funds of the City. The reporting entity for the City consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The primary government is financially accountable if (1) it appoints a voting majority of the organization's governing body and it is able to impose its will on that organization, (2) it appoints a voting majority of the organization's governing body and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government, (3) the organization is fiscally dependent on and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. Certain legally separate, tax exempt organizations should also be reported as a component unit if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units or its constituents; (2) the primary government or its component units, is entitled to, or has the ability to access, a majority of the economic resources received or held by the separate organization; and (3) the economic resources received or held by an individual organization that the primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to the primary government. Component units are reported using one of three methods, discrete presentation, blended or fiduciary. Generally, component units should be discretely presented in a separate column in the financial statements. A component unit should be reported as part of the primary government using the blending method if it meets any one of the following criteria: (1) the primary government and the component unit have substantively the same governing body and a financial benefit or burden relationship exists, (2) the primary government and the component unit have substantively the same governing body and management of the primary government has operational responsibility for the component unit, (3) the component unit serves or benefits, exclusively or almost exclusively, the primary government rather than its citizens or (4) the total debt of the component unit will be paid entirely or almost entirely from resources of the primary government. Blended Component Unit The Town of the City of Galesburg serves all the citizens of the City and is governed by a board comprised of the City's elected council. Although the Town is a legally separate entity, it is, in substance, part of the primary government's operations and a financial benefit or burden relationship exists with the City. Therefore data from the Town is blended with the financial data of the City. Separately issued financial statements of the Town may be obtained from the the administrative offices at City Hall, Galesburg, Illinois. 33 City of Galesburg Notes to Financial Statements December 31, 2021 Discretely Presented Component Unit Galesburg Public Library The government-wide financial statements include the Galesburg Public Library (Library) as a component unit. The Library is a legally separate organization. The board of the Library is appointed by the City's elected council. Statutes provide for circumstances whereby the City can impose its will on the Library, and also create a potential financial benefit to or burden on the City. The Library has one fund and is presented as a governmental fund type. The Galesburg Public Library Foundation (Foundation), a component unit of the Library, receives donations and provides funds to the Library and promotes its charitable, educational and cultural purposes. As a component unit, the Library's financial statements have been presented as a discrete column in the financial statements. The information presented is for the fiscal year ended December 31, 2021. The Library does not issue separate financial statements.Complete financial statements of the Foundation can be obtained from the administrative offices at City Hall, Galesburg, Illinois. Fiduciary Component Units The Police Pension Employees Retirement System (PPERS) is established for the City's police employees. PPERS functions for the benefit of these employees and is governed by a five- member pension board. Two members appointed by the City’s Mayor, one pension beneficiary elected by the membership and two police employees elected by the membership constitute the pension board. The City and the PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. PPERS is reported as a fiduciary component unit pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the PPERS. The Firefighters’ Pension Employees Retirement System (FPERS) is established for the City's firefighters. FPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the City’s Mayor, one pension beneficiary elected by the membership; and two fire employees elected by the membership constitute the pension board. The City and the FPERS participants are obligated to fund all FPERS costs based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. The State of Illinois is authorized to establish benefit levels and the City is authorized to approve the actuarial assumptions used in the determination of contribution levels. FPERS is reported as a fiduciary component unit and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the FPERS. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. 34 City of Galesburg Notes to Financial Statements December 31, 2021 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the City are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self- balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues and expenditures/expenses. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, 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 b. The same element of the individual governmental or enterprise fund that met the 10 percent test is at least 5 percent of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the City believes is particularly important to financial statement users may be reported as a major fund. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City reports the following major governmental funds: General Fund General Fund accounts for the City's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Special Revenue Funds Economic Development Fund is used to account for the economic development loans and assistance made to local businesses. Revenue is collected from the home rule tax that is distributed by the State of Illinois. Parks and Recreation Fund is used to account for operations of the City's parks and recreation programs. Revenue is collected from multiple sources including property taxes, other taxes and intergovernmental payments from the State of Illinois restricted, committed or assigned for culture and recreation purposes. 35 City of Galesburg Notes to Financial Statements December 31, 2021 Grants Fund is used to account for operations of the City's grant funds received from the State and Federal governments. Revenue is collected from State and/or Federal award agencies and is restricted to grant-related purposes.. Public Transportation Fund is used to account for operations associated with the City's Handivan program and the collection and use of public transportation operating assistance grants associated with the City's transit bus system. Enterprise Funds The City reports the following major enterprise funds: Water Fund accounts for operations of providing a safe and adequate water supply for fire protection, domestic and industrial use. Refuse Fund accounts for operations and maintenance of the refuse collection and recycling system. The City reports the following nonmajor governmental funds: Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). City Gas Tax Motor Fuel Tax Federal Special Enforcement State Special Enforcement Stormwater Utility Foreign Fire Airport Property Redevelopment Public Transportation Projects 911 Communications Town of the City of Galesburg Debt Service Funds Debt Service Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for the payment of general long-term debt principal, interest and related costs. 2011C Business Park 2013A GO Bonds Business District 2016 GO Bond Debt Service Capital Projects Funds Capital Projects Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. 2013A Business District Utility Tax Capital Projects TIF 3 Regency Capital Project Building Repair and Maintenance TIF Downtown TIF East Main Computer Replacement Vehicle Replacement Players Fields Capital Planning TIF IV TIF V 36 City of Galesburg Notes to Financial Statements December 31, 2021 Permanent Funds Permanent Funds are used to account for and report resources that are restricted to the extent that only earnings and not principal, may be used for purposes that support the reporting government's programs, that is, for the benefit of the government or its citizenry. Linwood Cemetery East Linwood Cemetery In addition, the City reports the following fund types: Internal Service Fund Internal Service Fund is used to account for and report the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governmental units, on a cost-reimbursement basis. Risk Management Pension and Other Employee Benefit Trust Funds Pension and Other Employee Benefit Trust Funds are used to account for and report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans and the other postemployment benefit plan. Police Pension Firefighters' Pension OPEB Trust Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and 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. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Interfund services provided and used are not eliminated from the government-wide financial statements. 37 City of Galesburg Notes to Financial Statements December 31, 2021 Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the City is entitled the resources and the amounts are available. Amounts owed to the City which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, licenses and permits and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and Fiduciary Funds Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. The 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 Water Fund and Refuse Fund are charges to customers for sales and services. Operating expenses for proprietary 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. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources 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. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity Deposits and Investments For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. 38 City of Galesburg Notes to Financial Statements December 31, 2021 Illinois Statutes authorize the City to make deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services and the Illinois Funds Investment Pool. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions and the Illinois insurance company general and separate accounts, mutual funds meeting certain requirements, equity securities and corporate bonds meeting certain requirements. Pension funds with net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The police pension fund’s investment policy allows investments in all of the above listed accounts, but does exclude any repurchase agreements. The firefighters pension fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. The police pension fund's investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Fixed income 33% 2.00% Equities 65 6.50 Cash and cash equivalents 2 0.20 Illinois Compiled Statues (ILCS) limit the police pension fund's investments in equities, mutual funds and variable annuities to 65 percent. Securities in any one company should not exceed 5 percent of the total fund. The police pension fund's investment policy does not include formalized long-term expected real rates of return by asset class. The police pension fund uses the actuarial assumption identified above for each asset class, which is determined by the pension plan's actuary and based on an arithmetic average. The firefighters' pension fund's investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Fixed income 40% 0.13 - 6.87% Equities 60 4.60 - 9.65 Cash and cash equivalents 0 -0.35 Illinois Compiled Statues (ILCS) limit the firefighters' pension fund's investments in equities, mutual funds and variable annuities to 65 percent. Securities in any one company should not exceed 5 percent of the total fund. 39 City of Galesburg Notes to Financial Statements December 31, 2021 The firefighters' pension fund's investment policy does not include formalized long-term expected real rates of return by asset class. The firefighters' pension fund uses the actuarial assumption identified above for each asset class, which is determined by the pension plan's actuary and based on an arithmetic average. The City has adopted an investment policy. That policy follows the state statute for allowable investments. Interest Rate Risk The City's investment policy minimizes the risk the fair value of fixed income securities in the portfolio will fall due to changes in the general interest rates by structuring the investment portfolio so that fixed income securities mature to meet cash requirements for on-going operations and by investing operating funds primarily in shorter-term fixed income securities. Per the City's investment policy, the maximum maturity for City investments shall be ten (10) years with the average maturity of the total portfolio not exceeding five (5) years. The Police and Firefighters' Pensions investment policies abide by the same guidelines as the City's investment policy. Credit Risk The City's investment policy mitigates credit risk by limiting investments to the safest types of securities, prequalifying the financial institutions, broker/dealers and advisors with which the City will do business and diversifying the investment portfolio so that potential losses on individual securities will be minimized. The Police Pension Fund and Firefighters' Pension Fund investment policies limit investments to those authorized by state statutes and applicable rules and regulations governing investments for the pension funds. To avoid unreasonable risk, diversification of investments is required, including equity allocation. Concentration of Credit Risk The City's investment policy seeks diversification to reduce overall portfolio risk while attaining market rates of return to enable the City to meet all anticipated cash requirements. The City places no limit on the amount the City may invest in one issuer. The Police Pension Fund and Firefighters' Pension Fund investment policies limits the amount available for investment in publicly traded common stocks with no more than 5 percent of investment assets of the pension fund in any one company stock. The funds avoid a concentration of credit risk by diversifying its investments by security type and institution. Custodial Credit Risk, Deposits The City's investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured with collateralization pledged by the applicable financial institution to the extent of 100 percent of the value of the deposit. The Police Pension Fund's investment policy requires perfect collateralization of all deposits in excess of FDIC insurable limits to the extent of 110 percent and evidenced by an approved written agreement. The Firefighters' Pension Fund abides by the requirements of the City's investment policy. 40 City of Galesburg Notes to Financial Statements December 31, 2021 Custodial Credit Risk, Investments The City's investment policy requires that all trades where applicable will be executed by delivery vs. payment to ensure the fixed income securities are deposited in eligible financial institutions prior to the release of funds. All fixed income securities shall be perfected in the name or for the account of the City and shall be held by a third-party custodian as evidenced by safekeeping receipts. The Police Pension Fund and Firefighters' Pension Fund investment policies allow the Pension Boards to register investments of the funds in the name of the pension funds, in the nominee name of a bank or trust company authorized to conduct a trust business in Illinois, or in the nominee name of the Illinois Public Treasurer's Investment Pool. The assets of the funds and ownership of the investments shall be protected through third-party custodial safekeeping. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on methods and inputs as outlined in Note 3. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, 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, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investments could be sold. See Note 3 for further information. Receivables Property taxes for levy year 2021 attaches as an enforceable lien on January 1, 2021, on property values assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax Levy Ordinance). The 2021 tax levy, which attached as an enforceable lien on the property as of January 1, 2021, was levied in December 2021. Tax bills for levy year 2021 are prepared by the Knox County Treasurer and issued on or about May 1, 2022 and August 1, 2022 and are payable in two installments, on or about June 1, 2022 and September 1, 2022 or within 30 days of the tax bills being issued. The County collects such taxes and remits them periodically. The 2021 property tax levy is recognized as a receivable and deferred inflows in fiscal 2021, net the allowance for uncollectible. As the taxes become available to finance current expenditures, they are recognized as revenues. At December 31, 2021, the property taxes receivable and related deferred inflows consisted of the estimated amount collectible from the 2021 levy. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. 41 City of Galesburg Notes to Financial Statements December 31, 2021 In the governmental fund financial statements, advances to other funds are offset equally by a nonspendable fund balance account which indicates that they do not constitute expendable available financial resources and, therefore, are not available for appropriation or by a restricted fund balance account, if the funds will ultimately be restricted when the advance is repaid. Inventories and Prepaid Items Governmental fund inventories, if material, are recorded at cost based on the FIFO method using the consumption method of accounting. Proprietary fund inventories are generally used for construction and/or for operation and maintenance work. They are not for resale. They are valued at cost based on weighted average and charged to construction and/or operation and maintenance expense when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Capital Assets Government-Wide Statements Capital assets, which include property, plant and equipment, are reported in the government- wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $50,000 for building improvements, land improvements, infrastructure and $25,000 for machinery and equipment and an estimated useful life in excess of 5 years. All capital assets are valued at historical cost or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. Donated capital assets received in a concession arrangement are recorded at acquisition value. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net position. Depreciation is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Buildings and improvements 8-50 Years Land Improvements 10-50 Years Machinery and Equipment 3-30 Years Infrastructure 20-100 Years The City's collection of works of art, library books and other similar assets are not capitalized. These collections are unencumbered, held for public exhibition and education, protected, cared for and preserved and subject to City policy that requires proceeds from the sale of these items to be used to acquire other collection items. Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. 42 City of Galesburg Notes to Financial Statements December 31, 2021 Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. A deferred charge on refunding arises from the advance refunding of debt. The difference between the cost of the securities placed in trust for future payments of the refunded debt and the net carrying value of that debt is deferred and amortized as a component of interest expense over the shorter of the term of the refunding issue or the original term of the refunded debt. The unamortized amount is reported as a deferred outflow of resources in the government-wide and proprietary fund financial statements. Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements. All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements and are payable with expendable resources. Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at December 31, 2021, are determined on the basis of current salary rates and include salary related payments. Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes and bonds payable, unamortized bond premium, net pension liabilities, net OPEB liabilities and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. For the government-wide statements and proprietary fund statements, bond premiums and discounts are amortized over the life of the issue using the effective interest method. The balance at year end is shown as an increase or decrease in the liability section of the statement of net position. 43 City of Galesburg Notes to Financial Statements December 31, 2021 On December 1, 2021, the City issued its Illinois Taxable Revenue Bonds, Series 2021 (the Knox College Project), in the aggregate amount of $40,930,000 to (1) finance, refinance, or reimburse itself for all or a portion of the costs of planning, design, acquisition, construction, renovation, improvement, expansion, completion, and/or equipping of certain of its educational facilities, (2) refund all of the outstanding principal amount of the City's Illinois Variable Rate Demand Revenue Bonds, Series 1996 (Knox College Project), (3) refund all of the outstanding principal amount of the City's Illinois Variable Rate Demand Revenue Bonds, Series 1999 (Knox College Project), (4) refinance certain taxable indebtedness incurred by the Project under a loan from PNC Bank, (5) finance termination payments with respect to certain Interest Rate Swaps entered into by the Project with respect to the Series 1996 Bonds and Series 1999 Bonds, and (6) pay certain costs incurred in connection with the issuance of the bonds. From the date of original issuance, the bonds have been and will continue to be equally and ratably secured and entitled to the security of a Trust Indenture between the City and Amalgamated Bank of Chicago (as Trustee). Repayment of the bonds is the responsibility of the Knox College Project. The bonds mature on October 1, 2046. As of December 31, 2021, $40,930,000 of 2021 Series bonds remain outstanding. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net Iinvestment in Capital Assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. b. Restricted Net Position - Consists of net position with constraints placed on their 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. c. Unrestricted Net Position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their 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. 44 City of Galesburg Notes to Financial Statements December 31, 2021 c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (ordinance) of the City Council. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the City Council that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Council may take official action to assign amounts or delegate responsibility to another party through the budgetary process. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. To maintain the City's ability to provide services during emergencies and unexpected declines in the economy the City will maintain a General Fund, fund balance of 16 weeks, or approximately 30 percent of operating expenditures. The fund balance shall be exclusive of all other reserves and contingencies and shall be reported as unassigned. See Note 3 for further information. Fiduciary fund net position is classified as restricted for pool participants, individuals, organizations and other governments on the statement of fiduciary net position. Various donor restrictions apply, including authorizing and spending trust income and the City believes it is in compliance with all significant restrictions. Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense, information about the fiduciary net position of the City OPEB Plan and additions to/deductions from the City OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the City OPEB Plan. For this purpose, the City OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. Property Held for Resale The City's land held for resale includes land that is being held for sale for future development of the City. The assets are valued at the lower of cost or market. 45 City of Galesburg Notes to Financial Statements December 31, 2021 2.Stewardship, Compliance and Accountability Deficit Balances Generally accepted accounting principles require disclosure of individual funds that have deficit balances at year end. As of December 31, 2021, the following individual funds held a deficit balance: Fund Am ount Reason Grants $(185,082)Operating expenditures exceeded available revenues Public Transportation (515,017)Prior year operating expenses exceeded available revenues 2013A GO Bonds Business District (189,435)Prior year operating expenditures exceeded available revenues Utility Tax Capital Projects (11,847)Prior year operating expenditures exceeded available revenues TIF 3 Regency Capital Project (365,608)Prior year operating expenditures exceeded available revenues These deficits are anticipated to be funded with future tax or grant revenues. TIF district deficits are anticipated to be funded with future incremental taxes levied over the life of the districts, which is 27 years for the districts created before October 1, 1995 and 23 years for districts created thereafter through September 30, 2004. Beginning October 1, 2004, the life of new districts varies by type of district (20-27 years) and may be extended in some cases. 46 City of Galesburg Notes to Financial Statements December 31, 2021 3.Detailed Notes on All Funds Deposits and Investments The City's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $26,145,451 $26,384,279 Custodial credit risk - deposits Money market mutual funds, bond funds 439,629 439,629 Credit risk, interest rate risk U.S. Agency obligations (implicitly guaranteed)4,964,849 4,964,849 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk U.S. Agency obligations (explicitly guaranteed)131,803 131,803 Custodial credit risk - investments, interest rate risk U.S. Treasury obligations 7,807,899 7,807,899 Custodial credit risk - investments, interest rate risk Mutual funds 13,405,536 13,405,536 N/A Insurance contracts and annuities 24,207,418 24,207,418 Credit risk, concentration of credit risk Common and preferred stock 5,995,533 5,995,533 Custodial credit risk - investments, concentration of credit risk Municipal bonds 53,505 53,505 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Corporate bonds 8,305,298 8,305,298 Credit risk, custodial credit risk - investments, concentration of credit risk, interest rate risk Illinois Funds 20,007,501 20,007,501 Credit risk Illinois Trusts 6,145,656 6,145,656 Credit risk Petty cash 4,580 -N/A Total deposits and investments $117,614,658 $117,848,906 47 City of Galesburg Notes to Financial Statements December 31, 2021 Reconciliation to financial statements Per statement of net position: Cash and cash equivalents $47,516,433 Investments 4,154,784 Per statement of fiduciary net position, fiduciary funds: Cash and cash equivalents 4,785,070 U.S. government and agency securities 9,353,571 Mutual funds 13,243,046 Common and preferred stock 5,995,533 Insurance contracts and annuities 24,207,418 Municipal bonds 53,505 Corporate bonds 8,305,298 Total deposits and investments $117,614,658 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest- bearing and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The City 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. 48 City of Galesburg Notes to Financial Statements December 31, 2021 The City utilized the fair market valuation method for recurring fair value measurements for both Level 1 and Level 2 investments. As of December 31, 2021, investments were measured using valuation inputs as follows: City December 31, 2021 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $-$3,550,980 $-$3,550,980 Mutual funds, bond funds 439,629 --439,629 Mutual funds 162,490 --162,490 Total $602,119 $3,550,980 $-$4,153,099 Police Pension Fund December 31, 2021 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $-$1,356,287 $-$1,356,287 U.S. Agency obligations -3,896,398 -3,896,398 Corporate bonds -3,433,062 -3,433,062 Insurance contracts and annuities --23,873,431 23,873,431 Total $-$8,685,747 $23,873,431 $32,559,178 Firefighters' Pension Fund December 31, 2021 Investment Type Level 1 Level 2 Level 3 Total U.S. Treasury obligations $-$2,900,632 $-$2,900,632 U.S. Agency obligations -1,200,254 -1,200,254 Municipal bonds -53,505 -53,505 Corporate bonds -4,872,236 -4,872,236 Stocks 5,995,533 --5,995,533 Mutual funds 11,373,552 --11,373,552 Insurance contracts and annuities --333,987 333,987 Total $17,369,085 $9,026,627 $333,987 $26,729,699 OPEB Trust Fund December 31, 2021 Investment Type Level 1 Level 2 Level 3 Total Mutual funds $1,869,494 $-$-$1,869,494 Total $1,869,494 $-$-$1,869,494 49 City of Galesburg Notes to Financial Statements December 31, 2021 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the City's deposits may not be returned to the City. The City does not have any deposits exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2021, investments were rated as follows: City Investment Type Standard & Poors Moody's Investors Services Illinois Funds AAAm N/R Illinois Trust AAAm N/R Mutual funds, bond funds AAAm Aaa-mf Police Pension Fund Investment Type Standard & Poors Moody's Investors Services U.S. Agency obligations (implicitly guaranteed)AA+Aaa Corporate bonds A- to AA+A3 to Aa2 Insurance contracts and annuities N/R N/R Firefighters' Pension Fund Investment Type Standard & Poors Moody's Investors Services U.S. Agency obligations (implicitly guaranteed)AA+Aaa Corporate bonds BBB- to AAA Baa3 to Aaa Municipal bonds AAA N/R Insurance contracts and annuities N/R N/R Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. 50 City of Galesburg Notes to Financial Statements December 31, 2021 At December 31, 2021, the Police Pension Fund's held the following investments in excess of 5 percent of the total Fund's investment portfolio: Issuer Investment Type Percentage of Portfolio Venerable Insurance Contract %12.71 Transamerica Insurance Contract 12.14 Prudential Insurance Contract 10.11 Ohio National Insurance Contract 10.11 Delaware Life Insurance Contract 9.72 Federal Home Loan Bank U.S. Agency obligations 8.30 Jackson National Insurance Contract 7.86 Nationwide Insurance Contract 7.27 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2021, investments were as follows: City Maturity (In Years) Investment Type Fair Value Less than 1 1 - 5 U.S. Treasury obligations $3,550,980 $1,497,361 $2,053,619 Money market mutual funds, bond funds 439,629 439,629 - Total $3,990,609 $1,936,990 $2,053,619 Police Pension Fund Maturity (In Years) Investment Type Fair Value Less than 1 1 - 5 6 - 10 Greater than 10 U.S. Treasury obligations $1,356,287 $-$290,926 $627,121 $438,240 U.S. Agency obligations 3,896,398 -1,722,825 1,463,345 710,228 Corporate bonds 3,433,062 1,117,740 979,712 1,335,610 - Total $8,685,747 $1,117,740 $2,993,463 $3,426,076 $1,148,468 Firefighters' Pension Fund Maturity (In Years) Investment Type Fair Value Less than 1 1 - 5 6 - 10 Greater than 10 U.S. Treasury obligations $2,900,632 $100,080 $1,420,620 $1,379,932 $- U.S. Agency obligations 1,200,254 15,844 186,878 309,128 688,404 Municipal bonds 53,505 ---53,505 Corporate bonds 4,872,236 569,980 2,397,050 1,840,290 64,916 Total $9,026,627 $685,904 $4,004,548 $3,529,350 $806,825 51 City of Galesburg Notes to Financial Statements December 31, 2021 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2021, the annual money-weighted rate of return on the Police Pension plan investments, net of pension plan investment expense, was 13.58 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Firefighters' Pension Fund For the year ended December 31, 2021, the annual money-weighted rate of return on the Firefighters' Pension plan investments, net of pension plan investment expense, was 7.64 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. See Note 1 for further information on deposit and investment policies. Receivables Receivables as of year end for the government's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: General Fund Economic Development Parks and Recreation Nonmajor Total Other Taxes Receivable: Home rule tax $801,725 $299,077 $179,446 $-$1,280,248 Food and beverage tax 148,914 -16,444 -165,358 Hotel/motel tax --92,617 -92,617 Auto rental tax 3,733 ---3,733 Local use tax 285,876 -50,449 -336,325 Video gaming tax 46,749 ---46,749 Business district tax ---12,075 12,075 Aviation fuel tax ---315 315 Total $1,286,997 $299,077 $338,956 $12,390 $1,937,420 General Parks and Recreation Grants Nonmajor Total Due From Other Governments: Replacement tax $323,349 $-$-$-$323,349 Sales tax 1,321,248 437,609 --1,758,857 State income tax 388,992 20,473 --409,465 Due from State of Illinois 78,118 -338,694 281,045 697,857 Other --184,092 -184,092 Due from other agencies 4,093 ---4,093 Total $2,115,800 $458,082 $522,786 $281,045 $3,377,713 52 City of Galesburg Notes to Financial Statements December 31, 2021 All of the receivables on the balance sheet, except for the loans receivable noted below, are expected to be collected within one year. As of December 31, 2021, the City had loans receivable in the amount of $2,418,688 related to twelve economic development loans issued to local businesses from 2014 through 2021. Monthly installments range from $202 to $82,603 with interest rates from 2.00 percent to 4.50 percent. Final payments are due from June 2022 to November 2030. Governmental funds report unavailable or unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and unearned revenue reported in the governmental funds were as follows: Unearned Unavailable Property taxes levied for future periods $9,464,670 $- Sales tax -621,497 Local use tax -136,691 Telecommunications tax -26,744 Auto rental tax -1,327 Home rule sales tax -435,168 Grants 2,054,744 724,306 Municipal cannabis use tax -29,861 Contributions from Knox County Sherriff -1,682 Remaining 2021 PSB expenses -77,639 Other 127,466 245,556 Total unearned/unavailable revenue for governmental funds $11,646,880 $2,300,471 Unearned revenue included in liabilities $2,182,210 Unearned revenue included in deferred inflows 9,464,670 Total unearned revenue for governmental funds $11,646,880 53 City of Galesburg Notes to Financial Statements December 31, 2021 Capital Assets Capital asset activity for the year ended December 31, 2021, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated: Land $6,318,227 $34,309 $-$6,352,536 Construction in progress 1,825,534 1,540,813 1,429,282 1,937,065 Total capital assets not being depreciated 8,143,761 1,575,122 1,429,282 8,289,601 Capital assets being depreciated: Land improvements 7,509,673 --7,509,673 Buildings and improvements 18,697,913 1,891,089 69,703 20,519,299 Machinery and equipment 13,992,875 148,181 321,011 13,820,045 Infrastructure 74,277,269 901,612 -75,178,881 Total capital assets being depreciated 114,477,730 2,940,882 390,714 117,027,898 Total capital assets 122,621,491 4,516,004 1,819,996 125,317,499 Less accumulated depreciation for: Land improvements (5,346,003)(186,622)-(5,532,625) Buildings and improvements (9,336,483)(416,665)23,062 (9,730,086) Machinery and equipment (7,909,000)(751,551)304,425 (8,356,126) Infrastructure (20,477,565)(1,543,198)-(22,020,763) Total accumulated depreciation (43,069,051)(2,898,036)327,487 (45,639,600) Net capital assets being depreciated 71,408,679 42,846 63,227 71,388,298 Total governmental activities capital assets, net of accumulated depreciation $79,552,440 $1,617,968 $1,492,509 $79,677,899 Depreciation expense was charged to functions as follows: Governmental Activities General Government $279,414 Economic Development 85,965 Public W orks 1,909,953 Public Safety 281,990 Culture and Recreation 340,714 Total governmental activities depreciation expense $2,898,036 54 City of Galesburg Notes to Financial Statements December 31, 2021 Beginning Balance Additions Deletions Ending Balance Business-Type Activities Capital assets not being depreciated: Land $693,913 $-$-$693,913 Construction in progress 291,521 1,055,971 -1,347,492 Total capital assets not being depreciated 985,434 1,055,971 -2,041,405 Capital assets being depreciated: Land improvements 66,666 --66,666 Buildings and improvements 24,412,831 85,000 -24,497,831 Machinery and equipment 4,388,746 --4,388,746 Infrastructure 21,159,568 --21,159,568 Total capital assets being depreciated 50,027,811 85,000 -50,112,811 Total capital assets 51,013,245 1,140,971 -52,154,216 Less accumulated depreciation for: Land improvements (34,040)(1,905)-(35,945) Buildings and improvements (4,471,234)(522,521)-(4,993,755) Machinery and equipment (2,692,200)(198,999)-(2,891,199) Infrastructure (8,948,484)(341,706)-(9,290,190) Total accumulated depreciation (16,145,958)(1,065,131)-(17,211,089) Net capital assets being depreciated 33,881,853 (980,131)-32,901,722 Business-Type capital assets, net of accumulated depreciation $34,867,287 $75,840 $-$34,943,127 55 City of Galesburg Notes to Financial Statements December 31, 2021 Interfund Receivables/Payables, Advances and Transfers Interfund Receivables/Payables The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash and investment accounts: Receivable Fund Payable Fund Am ount General Parks and Recreation $22,597 General Grants 14,741 General Public Transportation 1,107,394 General Water 414 General Nonmajor Governmental 13,430 Economic Development Nonmajor Governmental 230,815 Parks and Recreation General 14 Parks and Recreation Nonmajor Governmental 8,707 Nonmajor Governmental General 2,372,060 Nonmajor Governmental Parks and Recreation 154,539 Nonmajor Governmental Nonmajor Governmental 17,700 Water General 69 Total, fund financial statements 3,942,480 Less interfund receivables created with internal service fund eliminations (356,419) Less government-wide eliminations (3,942,135) Total internal balances, government-wide statement of net position $(356,074) All amounts are due within one year. The principal purpose of these interfunds is to cover deficits related to the timing of grant reimbursements, allocation of health insurance expenditures and to fund capital projects. All remaining balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and (3) payments between funds are made. Advances The Economic Development Fund advanced funds to the TIF 3 Regency Capital Project Fund. The amounts advanced are determined by the deficiency of revenues over expenditures since the inception of the fund. Additionally, multiple funds advanced funds to the Utility Tax Capital Projects Fund to provide resources for future capital projects. 56 City of Galesburg Notes to Financial Statements December 31, 2021 The following is a schedule of interfund advances: Receivable Fund Payable Fund Am ount General Nonmajor Governmental $133,837 Economic Development Nonmajor Governmental 501,960 Parks and Recreation Nonmajor Governmental 133,837 Nonmajor Governmental Nonmajor Governmental 267,674 Total, fund financial statements 1,037,308 Less fund eliminations (1,037,308) Total, interfund advances, government-wide statement of net position $- The principal purpose of these advances is to fund capital projects for economic development in the City.Additionally, in 2021, the City also provided a 10-year advance of funds from the General Fund to the Galesburg Public Library, the discretely presented component unit, to provide funding for a new HVAC system. No amounts are expected to be repaid within one year. For the Statement of Net Position, interfund advances which are owed within the governmental activities or business-type activities are netted and eliminated. Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Am ount General Nonmajor Governmental $6,633 Economic Development General 18,523 Economic Development Nonmajor Governmental 178,781 Parks and Recreation Nonmajor Governmental 8,707 Grants Nonmajor Governmental 124,774 Public Transportation General 90 Nonmajor Governmental General 2,474,277 Nonmajor Governmental Economic Development 353,396 Nonmajor Governmental Parks and Recreation 159,539 Nonmajor Governmental Public Transportation 10,369 Nonmajor Governmental Nonmajor Governmental 1,241,874 Total, fund financial statements 4,576,963 Less fund eliminations (4,576,963) Total transfers, government-wide statement of activities $- Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 57 City of Galesburg Notes to Financial Statements December 31, 2021 Long-Term Obligations Long-term obligations activity for the year ended December 31, 2021, was as follows: Beginning Balance Increases Decreases Ending Balance Am ounts Due Within One Year Governmental Activities Bonds and notes payable: General obligation debt $9,790,000 $-$735,000 $9,055,000 $775,000 (Discounts)/Premiums: Bond premium 191,369 -22,495 168,874 - Total bonds and notes payable 9,981,369 -757,495 9,223,874 775,000 Other liabilities: Compensated absences 1,725,620 1,923,608 1,827,975 1,821,253 1,340,946 Net pension liability, IMRF 4,165,579 983,327 4,996,461 152,445 - Net pension liability, Police 50,014,433 2,059,429 2,287,839 49,786,023 - Net pension liability, Firefighters'46,242,386 172,602 2,547,344 43,867,644 - Net OPEB liability 13,378,556 870,200 788,830 13,459,926 - Total other liabilities 115,526,574 6,009,166 12,448,449 109,087,291 1,340,946 Total governmental activities long- term liabilities $125,507,943 $6,009,166 $13,205,944 $118,311,165 $2,115,946 Business-Type Activities Bonds and notes payable: General obligation debt $13,275,000 $-$865,000 $12,410,000 $900,000 Notes payable, direct borrowing 455,463 -41,405 414,058 41,406 (Discounts)/Premiums: Bond premium 513,161 -67,637 445,524 - Total bonds and notes payable 14,243,624 -974,042 13,269,582 941,406 Other liabilities: Compensated absences 232,109 266,895 293,593 205,411 144,523 Net pension liability, IMRF 834,215 196,925 1,002,199 28,941 - Net OPEB liability 1,341,350 53,718 77,233 1,317,835 - Total other liabilities 2,407,674 517,538 1,373,025 1,552,187 144,523 Total business-type activities long- term liabilities $16,651,298 $517,538 $2,347,067 $14,821,769 $1,085,929 58 City of Galesburg Notes to Financial Statements December 31, 2021 General Obligation Debt All general obligation debt payable is backed by the full faith and credit of the City. Debt in the governmental funds will be retired by future property tax levies or tax increments accumulated by the debt service fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2021 2011C Refunding Bonds issued to refund General Obligation Bonds, Series 2003, due in annual payments of $175,000 to $310,000 October 11, 2011 December 30, 2023 3.0% - 4.6%$2,915,000 $605,000 2013A General Obligation Bonds issued to finance infrastructure improvements for the North Seminary Street Business District, due in annual payments of $30,000 to $125,000 October 8, 2013 December 30, 2032 3.0% - 4.3%1,390,000 1,060,000 2016 General Obligation Bonds issued to finance capital improvements for the East Fremont Street overlay project and brick streets overlay project, due in annual payments of $345,000 to $670,000 February 2, 2016 December 30, 2035 3.0% - 3.5%9,600,000 7,390,000 Total governmental activities, general obligation debt $9,055,000 Business-Type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2021 2015 General Obligation Bonds, due in annual payments of $115,000 to $610,000 May 6, 2015 December 30, 2032 3.0% - 3.25%$8,290,000 $5,760,000 2017 General Obligation Bonds, due in annual payments of $400,000 to $680,000 May 2, 2017 December 1, 2033 2.0% - 5.0%8,320,000 6,650,000 Total business-type activities, general obligation debt $12,410,000 59 City of Galesburg Notes to Financial Statements December 31, 2021 Debt service requirements to maturity are as follows: Governmental Activities Business-Type Activities General Obligation Debt General Obligation Debt Years Principal Interest Principal Interest 2022 $775,000 $300,483 $900,000 $438,794 2023 810,000 272,403 930,000 407,294 2024 520,000 242,393 960,000 374,694 2025 545,000 225,993 990,000 348,319 2026 565,000 208,793 1,020,000 319,869 2027-2031 3,185,000 761,168 5,675,000 1,029,519 2032-2035 2,655,000 223,375 1,935,000 120,075 Total $9,055,000 $2,234,608 $12,410,000 $3,038,564 Notes Payable The City borrowed funds from the Illinois Environmental Protection Agency (IEPA) for flood proofing existing structures at the City's well site near Oquawka, Illinois. The total loan commitment is $1,127,480, with $1,055,376 drawn at December 31, 2021. The agreement stipulates that 50 percent of the amount funded by American Recovery and Reinvestment Act (25 percent of total draws) will be forgiven and not require repayment. The balance requiring repayment at December 31, 2021 was $414,058. Principal payments will be due semiannually and no interest will be paid on the note. The final loan repayment schedule will be determined after the IEPA establishes the final principal amount. This note is repaid by the W ater Fund. Notes payable at December 31, 2021 consists of the following: Business-Type Activities Notes Payable Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2021 Loan, Illinois Environmental Protection Agency, due in semi-annual payments of $41,406 December 24, 2010 September 1, 2031 0%$1,127,480 $414,058 Total business-type activities notes payable $414,058 Debt service requirements to maturity are as follows: Business-Type Activities Notes Payable Years Principal Interest 2022 $41,406 $- 2023 41,406 - 2024 41,406 - 2025 41,406 - 2026 41,406 - 2027-2031 207,028 - Total $414,058 $- 60 City of Galesburg Notes to Financial Statements December 31, 2021 Other Debt Information Compensated absences and net pension and OPEB liabilities attributable to governmental activities are generally liquidated by the General Fund. The City is a home rule municipality and, therefore, is not subject to the statutory general obligation debt limitations. Net Position/Fund Balances Net position reported on the government-wide statement of net position at December 31, 2021, includes the following: Governmental Activities Net investment in capital assets: Land $6,352,536 Construction in progress 1,937,065 Other capital assets, net of accumulated depreciation 71,388,298 Less long-term debt outstanding (net of premiums, discounts and deferred amounts on refunding) related to capital assets (7,924,877) Plus bond issuance insurance 19,098 Less unamortized debt premium related to capital assets (143,250) Total net investment in capital assets $71,628,870 61 City of Galesburg Notes to Financial Statements December 31, 2021 Governmental Funds Governmental fund balances reported on the fund financial statements at December 31, 2021, include the following: General Economic Development Parks and Recreation Grants Public Transportation Nonmajor Funds Total Fund Balances Nonspendable: Prepaid items $360,194 $1,001 $41,406 $-$18,755 $18,516 $439,872 Inventories 51,370 -----51,370 Advances 646,291 -----646,291 Permanent fund principal -----602,119 602,119 Subtotal 1,057,855 1,001 41,406 -18,755 620,635 1,739,652 Restricted for: Motor fuel tax -----2,378,353 2,378,353 Special enforcement -----472,586 472,586 General government -----46,816 46,816 Foreign fire -----131,429 131,429 Infrastructure improvements -----7,836 7,836 Economic development -746,507 ----746,507 TIF expenditures -----1,524,567 1,524,567 Town of the City -----1,401,806 1,401,806 Cemetery -----33,101 33,101 Public works -----815,698 815,698 Debt service -----950 950 Restricted donations 12,795 -137,988 --18,059 168,842 Subtotal 12,795 746,507 137,988 --6,831,201 7,728,491 Committed to: General government encumbrances 77,940 -----77,940 Capital projects -----1,403,328 1,403,328 West Main Street Overpass 182,266 -----182,266 Property redevelopment -----1,261,506 1,261,506 Building repair and maintenance -----88,785 88,785 Community center building -----62,510 62,510 Computer replacement -----233,679 233,679 Economic development -8,228,661 ----8,228,661 Subtotal 260,206 8,228,661 ---3,049,808 11,538,675 Assigned to: Economic development -2,622,178 ----2,622,178 Building repair and maintenance -----2,705,619 2,705,619 Computer replacement -----1,106,236 1,106,236 Vehicle replacement -----4,212,196 4,212,196 Player fields -----24,095 24,095 Capital projects -----1,860,800 1,860,800 Parks and recreation --2,229,226 ---2,229,226 Subtotal -2,622,178 2,229,226 --9,908,946 14,760,350 Unassigned (deficit):12,253,147 --(185,082)(533,772)(567,789)10,966,504 Total fund balances (deficit)$13,584,003 $11,598,347 $2,408,620 $(185,082)$(515,017)$19,842,801 $46,733,672 62 City of Galesburg Notes to Financial Statements December 31, 2021 Business-Type Activities Net investment in capital assets: Land $693,913 Construction in progress 1,347,492 Other capital assets, net of accumulated depreciation 32,901,722 Less Long-term debt outstanding (12,824,058) Plus deferred charge on refunding 779,863 Less unamortized debt premium (445,524) Less capital-related payables (54,681) Total net investment in capital assets $22,398,727 Component Unit Galesburg Public Library This report contains the Galesburg Public Library (Library), which is included as a component unit. In addition to the basic financial statements and the preceding notes to financial statements which apply, the following additional disclosures are considered necessary for a fair presentation. Basis of Accounting/Measurement Focus The Library follows the modified accrual basis of accounting and the flow of economic resources measurement focus. Deposits and Investments Carrying Value Statement Balances Associated Risks Deposits $1,507,039 $1,516,544 Custodial credit risk - deposits Illinois Funds 3,737,881 3,737,881 Credit risk Mutual funds 3,742,385 3,742,385 N/A Stocks 667,192 667,192 Custodial credit risk - investments, concentration of credit risk Money market mutual funds, bond funds 211,058 211,058 Credit risk Beneficial interest in endowment fund 17,303 17,303 N/A Petty cash 1,130 -N/A Total deposits and investments $9,883,988 $9,892,363 The Library 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. 63 City of Galesburg Notes to Financial Statements December 31, 2021 The Library utilized the fair market valuation method of recurring fair value measurements. As of December 31, 2021, the Library's investments were measured using valuation inputs as follows: December 31, 2021 Investment Type Level 1 Level 2 Level 3 Total Money market mutual funds, bond funds $211,058 $-$-$211,058 Mutual funds 3,742,385 --3,742,385 Stocks 667,192 --667,192 Beneficial interest in endowment fund 17,303 --17,303 Total $4,637,938 $-$-$4,637,938 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Library's deposits may not be returned to the Library. The Library does not have any deposits exposed to custodial credit risk. Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Library will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Library does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. As of December 31, 2021, the Library's investments were rated as follows: Investment Type Standard & Poors Moody's Investors Services Illinois Funds AAAm N/R Money markets N/R N/R See Note 1 for further information on deposit and investment policies. 64 City of Galesburg Notes to Financial Statements December 31, 2021 Capital Assets Beginning Balance Additions Deletions Ending Balance Capital assets not being depreciated: Land $587,552 $210,051 $-$797,603 Construction in progress 70,871 1,733,313 2,000 1,802,184 Total capital assets not being depreciated 658,423 1,943,364 2,000 2,599,787 Capital assets being depreciated: Buildings and improvements 1,355,125 --1,355,125 Machinery and equipment 654,619 --654,619 Total capital assets being depreciated 2,009,744 --2,009,744 Total capital assets 2,668,167 1,943,364 2,000 4,609,531 Less accumulated depreciation for: Buildings and improvements (970,194)(15,247)-(985,441) Machinery and equipment (166,680)(25,135)-(191,815) Total accumulated depreciation (1,136,874)(40,382)-(1,177,256) Net capital assets being depreciated 872,870 (40,382)-832,488 Total Library capital assets, net of accumulated depreciation $1,531,293 $1,902,982 $2,000 $3,432,275 Long-Term Obligations On July 1, 2019, the Library entered into a loan agreement with the Library Foundation, wherein the Foundation loaned $3,000,000 to the Library. The Loan is for twelve months with an interest rate of 3.75 percent, payable semi-annually, with the principal payable on July 1, 2022. As the Foundation is reported as part of the Library in the government-wide financial statements, the $3,000,000 long-term liability of the Library and the $3,000,000 receivable of the Foundation are netted and eliminated for reporting purposes. On July 1, 2020, the Foundation borrowed $3,000,000 from U.S. Bank with an initial interest rate of 2.26 percent. Monthly interest only payments in amounts determined by the lender shall be paid by the Foundation on the 30th day of each month, commencing and continuing until the maturity date of July 1, 2022. On April 21, 2020, the Library issued $2,000,500 in debt certificates with an initial interest rate of 3.25 percent. Monthly interest only payments in amounts determined by the lender are paid on the 28th of each month, commencing on May 28, 2020 and continuing until the maturity date of April 28, 2022. 65 City of Galesburg Notes to Financial Statements December 31, 2021 Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Debt certificates - direct borrowing $2,000,500 $-$-$2,000,500 $2,000,500 Notes payable - direct borrowing 3,000,000 --3,000,000 3,000,000 Compensated absences 130,722 103,643 111,624 122,741 39,417 Net pension liability - IMRF 480,145 113,343 577,685 15,803 - Net OPEB liability 20,377 3,709 1,333 22,753 - Total $5,631,744 $220,695 $690,642 $5,161,797 $5,039,917 Debt service requirements to maturity for debt certificates and notes payable are as follows: Principal Interest 2022 $5,000,500 $96,013 Total $5,000,500 $96,013 4.Other Information Employees' Retirement System The City contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an 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. The benefits, benefit levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension plans. IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. This report is also available for download at www.imrf.org. 66 City of Galesburg Notes to Financial Statements December 31, 2021 For the year ended December 31, 2021, the City recognized the following balances in the government-wide financial statements: Total Pension Liability Net Pension Liability Deferred Outflows of Resources Deferred Inflows of Resources Pension Expense IMRF, City and Library $69,391,143 $197,189 $3,297,339 $6,803,786 $(448,018) IMRF, Town*2,587,139 -91,934 241,774 28,127 Police Pension Plan 83,987,539 49,786,023 14,647,886 4,644,232 6,167,850 Firefighters' Pension Plan 73,277,788 43,867,644 7,967,878 5,234,109 4,990,772 Total $229,243,609 $93,850,856 $26,005,037 $16,923,901 $10,738,731 As of December 31, 2021, the Township reported an IMRF net pension asset of $225,852. Illinois Municipal Retirement Fund - City and Library Plan Description All employees (other than those covered by the Police and Firefighters' Pension plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 3 percent for each year thereafter. Em ployees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate of earnings for the first 15 years of service credit, plus 2 percent for each year of service after 15 years to a maximum of 75 percent 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 ever year after retirement, upon reaching age 67, by the lesser of 3 percent of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. Under the employer number within IMRF, both the City and Library contribute to the plan. As a result, IMRF is considered to be an agent multiple-employer plan through which cost-sharing occurs between the City and Library. Plan Membership At December 31, 2020, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 199 Inactive, non-retired members 57 Active members 163 Total 419 67 City of Galesburg Notes to Financial Statements December 31, 2021 Contributions As set by statute, City and Library employees participating in IMRF are required to contribute 4.50 percent of their annual covered salary. The statute requires the City and Library to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The City and Library’s actuarially determined contribution rate for calendar year 2021 was 14.69 percent of annual covered payroll for IMRF. The City and Library also contribute for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2020, and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2020 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.25% Salary increases 2.85% - 13.75% Price inflation 2.25% Mortality For non-disabled retirees, the Pub-2010, Amount-W eighted, below-m edian income, General, Retiree, Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected using scale MP-2020. For disabled retirees, the Pub-2010, Amount- Weighted, below-m edian income, General, Disables Retiree, Male and Female (both unadjusted) tables, and future mortality improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-W eighted, below-median income, General, Em ployee, Male and Female (both unadjusted) tables, and future mortality im provements projected using scale MP-2020. 68 City of Galesburg Notes to Financial Statements December 31, 2021 Long-Term Expected Real Rate of Return The long-term expected rate of return on pension plan investments was determined using an asset allocation study in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Projected Returns/Risks Asset Class Target Allocation One Year Arithmetic Ten Year Geometric Equities %37.00 %6.35 %5.00 International equities 18.00 7.65 6.00 Fixed income 28.00 1.40 1.30 Real estate 9.00 7.10 6.20 Alternatives 7.00 Private equity 10.35 6.95 Commodities 3.90 2.85 Cash equivalents 1.00 0.70 0.70 Discount Rate The discount rate used to measure the total pension liability for IMRF was 7.25 percent. The discount rate calculated using the December 31, 2019 measurement date was 7.25 percent. 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 City and Library contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits 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 net pension liability/(asset) of the City and Library calculated using the discount rate of 7.25 percent as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.25 percent) or 1 percentage point higher (8.25 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase City: Total pension liability $72,785,275 $65,007,520 $58,791,014 Plan fiduciary net position 64,826,134 64,826,134 64,826,134 Net pension liability/(asset)$7,959,141 $181,386 $(6,035,120) 69 City of Galesburg Notes to Financial Statements December 31, 2021 1% Decrease Current Discount Rate 1% Increase Library: Total pension liability $4,908,097 $4,383,623 $3,964,428 Plan fiduciary net position 4,367,820 4,367,820 4,367,820 Net pension liability/(asset)$540,277 $15,803 $(403,392) Total: Total pension liability $77,693,372 $69,391,143 $62,755,442 Plan fiduciary net position 69,193,954 69,193,954 69,193,954 Net pension liability/(asset)$8,499,418 $197,189 $(6,438,512) Changes in Net Pension Liability/(Asset) The changes in net pension liability/(asset)for the calendar year ended December 31, 2020 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) City: Balances at December 31, 2019 $63,595,775 $58,595,981 $4,999,794 Service cost 766,685 -766,685 Interest on total pension liability 4,414,161 -4,414,161 Differences between expected and actual experience of the total pension liability 703,455 -703,455 Change of assumptions (557,293)-(557,293) Benefit payments, including refunds of employee contributions (3,915,263)(3,915,263)- Contributions, employer -1,226,214 (1,226,214) Contributions, employee -384,039 (384,039) Net investment income -8,549,012 (8,549,012) Other (net transfer)-(13,849)13,849 Balances at December 31, 2020 $65,007,520 $64,826,134 $181,386 Library: Balances at December 31, 2019 $4,305,172 $3,825,027 $480,145 Service cost 66,796 -66,796 Interest on total pension liability 384,578 -384,578 Differences between expected and actual experience of the total pension liability 61,288 -61,288 Change of assumptions (93,099)-(93,099) Benefit payments, including refunds of employee contributions (341,112)(341,112)- Contributions, employer -106,832 (106,832) Contributions, employee -33,459 (33,459) Net investment income -744,821 (744,821) Other (net transfer)-(1,207)1,207 Balances at December 31, 2020 $4,383,623 $4,367,820 $15,803 70 City of Galesburg Notes to Financial Statements December 31, 2021 Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Total: Balances at December 31, 2019 $67,900,947 $62,421,008 $5,479,939 Service cost 833,481 -833,481 Interest on total pension liability 4,798,739 -4,798,739 Differences between expected and actual experience of the total pension liability 764,743 -764,743 Change of assumptions (650,392)-(650,392) Benefit payments, including refunds of employee contributions (4,256,375)(4,256,375)- Contributions, employer -1,333,046 (1,333,046) Contributions, employee -417,498 (417,498) Net investment income -9,293,833 (9,293,833) Other (net transfer)-(15,056)15,056 Balances at December 31, 2020 $69,391,143 $69,193,954 $197,189 Plan fiduciary net position as a percentage of the total pension liability %99.72 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the City and Library recognized pension expense of $(448,018). The City and Library reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources City: Difference between expected and actual experience $1,302,829 $6,888 Assumption changes 575,516 789,908 Net difference between projected and actual earnings on pension plan investments -5,461,710 Contributions subsequent to the measurement date 1,153,515 - Total $3,031,860 $6,258,506 Library: Difference between expected and actual experience $113,511 $600 Assumption changes 50,143 68,822 Net difference between projected and actual earnings on pension plan investments -475,858 Contributions subsequent to the measurement date 101,825 - Total $265,479 $545,280 71 City of Galesburg Notes to Financial Statements December 31, 2021 Deferred Outflows of Resources Deferred Inflows of Resources Total: Difference between expected and actual experience $1,416,340 $7,488 Assumption changes 625,659 858,730 Net difference between projected and actual earnings on pension plan investments -5,937,568 Contributions subsequent to the measurement date 1,255,340 - Total $3,297,339 $6,803,786 The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2022. The remaining amounts reported as deferred outflows and inflows of resources related to pensions (($149,840)) will be recognized in pension expense as follows: Year Ending December 31,City Library Total 2022 $(1,234,723)$(107,577)$(1,342,300) 2023 (148,492)(12,937)(161,429) 2024 (2,114,924)(184,265)(2,299,189) 2025 (882,022)(76,847)(958,869) Total $(4,380,161)$(381,626)$(4,761,787) Illinois Municipal Retirement Fund - Town of the City of Galesburg Plan Description All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at or after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1 2/3 percent of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 2 percent for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3 percent of their final rate of earnings for the first 15 years of service credit, plus 2 percent for each year of service after 15 years to a maximum of 75 percent 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 ever year after retirement, upon reaching age 67, by the lesser of 3 percent of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. 72 City of Galesburg Notes to Financial Statements December 31, 2021 Plan Membership At December 31, 2020, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 11 Inactive, non-retired members 1 Active members 7 Total 19 Contributions As set by statute, Town employees participating in IMRF are required to contribute 4.50 percent of their annual covered salary. The statute requires the Town to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Town's actuarially determined contribution rate for calendar year 2021 was 8.52 percent of annual covered payroll. The Town also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2020 and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2020 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.25% Salary increases 2.85% to 13.75%, including inflation Price inflation 2.25% 73 City of Galesburg Notes to Financial Statements December 31, 2021 Mortality For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2020 (base year 2017). The IMRF specific rates were developed from the RP-2017 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2020 (base year 2017). The IMRF specific rates were developed from the RP-2017 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2020 (base year 2017). The IMRF specific rates were developed from the RP-2017 Employee Mortality Table with adjustments to match current IMRF experience. Long-Term Expected Real Rate of Return See Long-Term Expected Real Rate of Return section in Illinois Municipal Retirement Fund - City and Library note above: Discount Rate The discount rate used to measure the total pension liability for IMRF was 7.25 percent. The discount rate calculated using the December 31, 2019 measurement date was 7.25 percent. 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 Town contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits 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 Town calculated using the discount rate of 7.25 percent as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.25 percent) or 1 percentage point higher (8.25 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $2,842,770 $2,587,139 $2,371,503 Plan fiduciary net position 2,812,991 2,812,991 2,812,991 Net pension liability/(asset)$29,779 $(225,852)$(441,488) 74 City of Galesburg Notes to Financial Statements December 31, 2021 Changes in Net Pension Liability/(Asset) The Town changes in net pension liability/(asset)for the calendar year ended December 31, 2020 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Balances at December 31, 2019 $2,439,145 $2,522,562 $(83,417) Service cost 38,008 -38,008 Interest on total pension liability 172,660 -172,660 Differences between expected and actual experience of the total pension liability 110,107 -110,107 Change of assumptions (19,517)-(19,517) Benefit payments, including refunds of employee contributions (153,264)(153,264)- Contributions, employer -31,127 (31,127) Contributions, employee -16,440 (16,440) Net investment income -365,840 (365,840) Other (net transfer)-30,286 (30,286) Balances at December 31, 2020 $2,587,139 $2,812,991 $(225,852) Plan fiduciary net position as a percentage of the total pension liability %108.73 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the Town recognized pension expense of $28,127. The Town reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $63,807 $- Assumption changes -11,149 Net difference between projected and actual earnings on pension plan investments -230,625 Contributions subsequent to the measurement date 28,127 - Total $91,934 $241,774 75 City of Galesburg Notes to Financial Statements December 31, 2021 The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2022. The remaining amounts reported as deferred outflows and inflows of resources related to pensions (($149,840)) will be recognized in pension expense as follows: Year Ending December 31,Total 2022 $(6,866) 2023 (14,045) 2024 (91,793) 2025 (37,136) Total $(149,840) Police Pension Plan Description Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension Fund as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one half of the salary attached to the rank on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5 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 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension 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 paid upon reaching at least the age 55, by 3 percent of the original pension and 3 percent compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5 percent of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75 percent of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3 percent or one-half the annual unadjusted percentage increase in the CPI, whichever is less. 76 City of Galesburg Notes to Financial Statements December 31, 2021 Plan Membership At December 31, 2020, the actuarial valuation date, the Police Pension membership consisted of: Retirees and beneficiaries 59 Inactive, non-retired members 10 Active members 49 Total 118 Contributions Covered employees are required to contribute 9.91 percent 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 City is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the City’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90 percent funded by the year 2040. The City's actuarially determined contribution rate for the fiscal year ending December 31, 2021 was 66.67 percent of annual covered payroll. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2021 and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies The financial statements of the Police Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The City’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. 77 City of Galesburg Notes to Financial Statements December 31, 2021 Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed as of December 31, 2021 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.25% Projected salary increases 3.75% - 4.78% Cost-of-living adjustments 2.25% Mortality rates were based on the PubS-2010(A) Study Adjusted for Plan Status, Demographics and Illinois Public Pension Data.. The actuarial assumptions were based on the results of a 2020 actuarial experience study conducted by the independent actuary for Illinois Police Officers. Discount Rate The discount rate used to measure the total pension liability for the Police Pension Plan was 4.69 percent. The discount rate calculated using the December 31, 2020 measurement date was 5.04 percent. 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 City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments of 6.75 percent was blended with the index rate of 2.06 percent for tax exempt 20-year general obligation municipal bonds with an average AA credit rating as of December 31, 2021 to arrive at a discount rate of 4.69 percent used to determine the total pension liability. The year ending December 31, 2061 is the last year in the project period for which projected benefit payments are fully funded. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate of 4.69 percent as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (3.69 percent) or 1 percentage point higher (5.69 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $97,821,762 $83,987,539 $72,947,523 Plan fiduciary net position 34,201,516 34,201,516 34,201,516 Net pension liability $63,620,246 $49,786,023 $38,746,007 78 City of Galesburg Notes to Financial Statements December 31, 2021 Changes in Net Pension Liability/(Asset) The City's changes in net pension liability/(asset) for the calendar year ended December 31, 2021 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2020 $81,048,280 $31,033,847 $50,014,433 Service cost 1,257,913 -1,257,913 Interest on total pension liability 3,850,253 -3,850,253 Differences between expected and actual experience of the total pension liability (2,962,803)-(2,962,803) Change of assumptions 4,143,452 -4,143,452 Benefit payments, including refunds of employee contributions (3,349,556)(3,349,556)- Contributions - employer -2,287,839 (2,287,839) Contributions - employee -391,329 (391,329) Net investment income -3,864,471 (3,864,471) Administration -(26,414)26,414 Balances at December 31, 2021 $83,987,539 $34,201,516 $49,786,023 Plan fiduciary net position as a percentage of the total pension liability %40.72 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the City recognized pension expense of $6,167,850. The City reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $2,335,294 $2,563,516 Assumption changes 12,312,592 162,082 Net difference between projected and actual earnings on pension plan investments -1,918,634 Total $14,647,886 $4,644,232 79 City of Galesburg Notes to Financial Statements December 31, 2021 The amounts reported as deferred outflows and inflows of resources related to pensions ($10,003,654) will be recognized in pension expense as follows: Year Ending December 31,Am ount 2022 $3,163,147 2023 2,350,738 2024 2,556,179 2025 1,777,811 2026 155,779 Total $10,003,654 Firefighters' Pension Plan Description Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank held in the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5 percent of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75 percent of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3 percent of the original pension and 3 percent compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5 percent of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75 percent of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3 percent or one-half the annual unadjusted percentage increase in the CPI, whichever is less. 80 City of Galesburg Notes to Financial Statements December 31, 2021 Plan Membership At December 31, 2020, the actuarial valuation date, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries 64 Inactive, non-retired members 5 Active members 41 Total 110 Contributions Participants contribute a fixed percentage of their base salary to the plans. At December 31, 2021, the contribution percentage was 9.455 percent. If a participant leaves covered employment with less than 20 years of service, accumulated participant contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the City’s contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90 percent funded by the year 2040. The City's actuarially determined contribution rate for the fiscal year ending December 31, 2021 was 83.79 percent of annual covered payroll. Net Pension Liability/(Asset) The net pension liability/(asset) was measured as of December 31, 2021 and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The City’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. 81 City of Galesburg Notes to Financial Statements December 31, 2021 Actuarial Assumptions The total pension liability was determined by an actuarial valuation performed as of December 31, 2021 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.25% Projected salary increases 3.75% - 7.30% Cost-of-living adjustments 2.25% Mortality rates were based on the PubS-2010(A) Study Adjusted for Plan Status, Demographics and Illinois Public Pension Data. The actuarial assumptions were based on the results of a 2020 actuarial experience study conducted by the independent actuary for Illinois Firefighters. Discount Rate The discount rate used to measure the total pension liability for the Firefighters' Pension Plan was 4.76 percent. The discount rate calculated using the December 31, 2020 measurement date was 5.04 percent. 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 City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments of 6.75 percent was blended with the index rate of 2.06 percent for tax exempt 20-year general obligation municipal bonds with an average AA credit rating as of December 31, 2021 to arrive at a discount rate of 4.76 percent used to determine the total pension liability. The year ending December 31, 2059 is the last year in the project period for which projected benefit payments are fully funded. Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the City calculated using the discount rate of 4.76 percent as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (3.76 percent) or 1 percentage point higher (5.76 percent) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $84,206,550 $73,277,788 $64,415,513 Plan fiduciary net position 29,410,144 29,410,144 29,410,144 Net pension liability $54,796,406 $43,867,644 $35,005,369 82 City of Galesburg Notes to Financial Statements December 31, 2021 Changes in Net Pension Liability/(Asset) The City's changes in net pension liability/(asset) for the calendar year ended December 31, 2021 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2020 $74,274,685 $28,032,299 $46,242,386 Service cost 1,279,591 -1,279,591 Interest on total pension liability 3,405,605 -3,405,605 Differences between expected and actual experience of the total pension liability (4,941,167)-(4,941,167) Change of assumptions 2,667,256 -2,667,256 Benefit payments, including refunds of employee contributions (3,408,182)(3,408,182)- Contributions, employer -2,547,344 (2,547,344) Contributions, employee -287,461 (287,461) Net investment income -1,977,162 (1,977,162) Other -283 (283) Administration -(26,223)26,223 Balances at December 31, 2021 $73,277,788 $29,410,144 $43,867,644 Plan fiduciary net position as a percentage of the total pension liability %40.14 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2021, the City recognized pension expense of $4,990,772. The City reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $649,947 $4,031,459 Assumption changes 7,317,931 - Net difference between projected and actual earnings on pension plan investments -1,202,650 Total $7,967,878 $5,234,109 83 City of Galesburg Notes to Financial Statements December 31, 2021 The amounts reported as deferred outflows and inflows of resources related to pensions ($2,733,769) will be recognized in pension expense as follows: Year Ending December 31,Am ount 2022 $1,744,580 2023 1,008,936 2024 372,409 2025 (392,156) Total $2,733,769 Pension Segment Information Fiduciary Net Position Pension Trust Police Pension Fire Pension OPEB Trust Total Assets Cash and cash equivalents $1,867,595 $2,917,475 $-$4,785,070 Investments: U.S. government and agency obligations 5,252,685 4,100,886 -9,353,571 Mutual funds -11,373,552 1,869,494 13,243,046 Common and preferred stock -5,995,533 -5,995,533 Insurance contracts and annuities 23,873,431 333,987 -24,207,418 Municipal bonds -53,505 -53,505 Corporate bonds 3,433,062 4,872,236 -8,305,298 Due from primary government --140,475 140,475 Receivables, (net allowances for uncollectibles) Accounts 34,299 --34,299 Accrued interest 19,615 51,486 -71,101 Total assets 34,480,687 29,698,660 2,009,969 66,189,316 Liabilities Accounts payable 279,171 288,516 -567,687 Total liabilities 279,171 288,516 -567,687 Net Position Restricted for OPEB --2,009,969 2,009,969 Restricted for retirement benefits 34,201,516 29,410,144 -63,611,660 Total net position $34,201,516 $29,410,144 $2,009,969 $65,621,629 84 City of Galesburg Notes to Financial Statements December 31, 2021 Changes in Plan Net Position Pension Trust Police Pension Fire Pension OPEB Trust Total Additions Contributions: Employer $2,287,839 $2,547,344 $1,009,207 $5,844,390 Participants 391,329 287,461 -678,790 Total contributions 2,679,168 2,834,805 1,009,207 6,523,180 Investment income: Net depreciation in fair value of investments 3,794,198 985,521 227,594 5,007,313 Interest income 94,106 1,069,785 -1,163,891 Total investment income 3,888,304 2,055,306 227,594 6,171,204 Less investment expense (23,833)(78,144)-(101,977) Net investment income 3,864,471 1,977,162 227,594 6,069,227 Miscellaneous:-283 -283 Total additions 6,543,639 4,812,250 1,236,801 12,592,690 Deductions Benefits 3,349,556 3,408,182 868,732 7,626,470 Administration 26,414 26,223 1,306 53,943 Total deductions 3,375,970 3,434,405 870,038 7,680,413 Change in net position 3,167,669 1,377,845 366,763 4,912,277 Net position, beginning 31,033,847 28,032,299 1,643,206 60,709,352 Net position, ending $34,201,516 $29,410,144 $2,009,969 $65,621,629 Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; and workers compensation. The City has established self-insurance funds (internal service funds) to provide coverage for losses from general liability, property and workers' compensation insurance claims. Self Insurance For general liability and workers' compensation claims, the City is fully self-insured. For property claims, the City pays a specific per incident deductible and then has private insurance for all losses in excess of that amount. All claims handling procedures are performed by an independent claims administrator. 85 City of Galesburg Notes to Financial Statements December 31, 2021 All funds of the City participate in the risk management program. Amounts payable to the self- insurance funds are based on estimates of the amounts necessary to pay prior and current year claims and to establish a reserve for catastrophic losses. These estimates are determined based on historical claims experience. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities include an amount for claims that have been incurred but not reported. The City does not allocate overhead costs or other nonincremental costs to the claims liability. There have been no significant reductions in insurance coverage in the current year from prior years. The amount of settlements have not exceeded insurance coverage in the past three fiscal years. Claims Liability Prior Year Current Year Unpaid Claims, Beginning $170,000 $60,000 Current year claims and changes in estimates 17,300 267,844 Claim payments (127,300)(157,844) Unpaid Claims, Ending $60,000 $170,000 As of December 31, 2021, the entire balance of claims payable is expected to be paid within one year. Commitments and Contingencies Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. From time to time, the City is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the City attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the City's financial position or results of operations. The City has active construction projects as of December 31, 2021. W ork that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. The City has an estimated remaining commitment of $4,687,586 related to these projects. Other Postemployment Benefits General Information About the OPEB Plan Plan Description The City administers the Other Postemployment Benefit Plan (OPEB Plan), a single-employer defined benefit plan that is used to provide postemployment benefits other than pensions (OPEB) for all permanent full-time general and public safety employees of the City and Library. Contribution requirements are established through collective bargaining agreements and may be amended only through negotiations between the City and the unions. 86 City of Galesburg Notes to Financial Statements December 31, 2021 Benefits Provided The OPEB Plan provides continuation of employer subsidized health coverage for the retiree and their dependents, if any, upon retirement from the City after meeting the age and service requirements for retirement. The City pays 100 percent of the premium cost of coverage of the lowest cost health plan offered for retirees to age 65 for employees hired prior to 2011 (except those employed from Library, Township and City Assessor, who pay 100 percent of the premium costs). Retirees pay a portion of the premium cost of coverage for spousal coverage. Disabled officers are covered to age 65 paid 100 percent by the City. Employees hired after 2010 who retire may elect to continue coverage under the plan by contributing 100 percent of the premium rate costs. Employees Covered by Benefit Terms At December 31, 2021, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 72 Active plan members 251 323 Contributions The City Council has the authority to establish and amend the contribution requirements of the City and employees. The Council establishes rates based on an actuarially determined rate. For the year ended December 31, 2021, the City's average contribution rate was 5.32 percent of covered payroll. The City pays all benefit claims from operations and makes annual contributions to the plan. Plan members are not required to contribution to the plan. Net OPEB Liability The City's net OPEB liability was measured as of December 31, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. Actuarial Assumptions The total OPEB liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary increases 3.50% Investment rate of return 1.84% Healthcare cost trend rates 7.25% for 2021, decreasing in increments of 0.25% annually to 7.00% for 2022, further decreasing in increments of 0.50% annually to an ultimate rate of 4.00% for 2028 and after Mortality rates were based on the RP-2014 Blue Collar base rates projected to 2020 using scale MP2020 for Police and Fire participants. For other participants, the RP-2014 base rates projected 2020 using scale MP2020 were used. 87 City of Galesburg Notes to Financial Statements December 31, 2021 The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an actuarial experience study for the period from 2004 through 2008 adjusted forward by mortality improvement scales from the Society of Actuaries and an actuarial experience study for the period from 2004 through 2011 from the Illinois Department of Insurance.. Investment Policy See Note 1 for disclosures related to the OPEB Plan's investment policy. The OPEB Plan's investment policy does not include formal target allocations for the diversification of the portfolio across a broad selection of distinct asset classes. Money-weighted rate of return For the year ended December 31, 2021, the annual money-weighted rate of return on investments, net of investment expense, was 12.96 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Discount Rate The discount rate used to measure the total OPEB liability was 1.84 percent. The projection of cash flows used to determine the discount rate assumed that City and Library contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position will not be available to make all projected future benefit payments of current plan members. Therefore, a blended rate, based on the long-term expected rate of return on OPEB Plan investments and 20-year GO municipal bond rate, was used to determine the total OPEB liability. Changes in the Net OPEB Liability Increase (Decrease) Total OPEB Liability (a) Plan Fiduciary Net Position (b) Net OPEB Liability (a)-(b) Balances at December 31, 2020 $16,383,489 $1,643,206 $14,740,283 Service cost 743,173 -743,173 Interest 318,982 -318,982 Changes in assumptions 234,877 -234,877 Contributions-employer -1,009,207 (1,009,207) Net investment income -227,594 (227,594) Benefit payments (868,732)(868,732)- Administrative expense (1,306)(1,306)- Balances at December 31, 2021 $16,810,483 $2,009,969 $14,800,514 Net OPEB liability, City $16,784,895 $2,007,134 $14,777,761 Net OPEB liability, Library 25,588 2,835 22,753 Net OPEB liability, Total $16,810,483 $2,009,969 $14,800,514 Plan fiduciary net position as a percentage of the total OPEB liability %11.96 88 City of Galesburg Notes to Financial Statements December 31, 2021 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City and Library, as well as what the City's and Library's net OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (0.84 percent) or 1-percentage-point higher (2.84 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (0.84%)(1.84%)(2.84%) Net OPEB liability, City $16,192,149 $14,777,761 $13,221,457 Net OPEB liability, Library 24,931 22,753 20,357 Net OPEB liability, Total $16,217,080 $14,800,514 $13,241,814 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City and Library, as well as what the City's and Library's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.25 percent decreasing to 3.00 percent) or 1-percentage- point higher (8.25 percent decreasing to 5.00 percent) than the current healthcare cost trend rates: 1% Decrease (6.25% Decreasing to 3.00%) Healthcare Cost Trend Rates (7.25% Decreasing to 4.00%) 1% Increase (8.25% Decreasing to 5.00%) Net OPEB liability, City $12,897,258 $14,777,761 $16,671,648 Net OPEB liability, Library 19,858 22,753 25,669 Net OPEB liability, Total $12,917,116 $14,800,514 $16,697,317 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2021, the City and Library recognized OPEB expense of $918,736. At December 31, 2021, the City and Library reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $-$1,183,659 Changes of assumptions or other inputs 2,583,202 147,291 Differences between expected and actual investment earnings -281,837 Total $2,583,202 $1,612,787 Deferred Outflows / Inflows, City $2,579,231 $1,610,308 Deferred Outflows / Inflows, Library 3,971 2,479 Total $2,583,202 $1,612,787 89 City of Galesburg Notes to Financial Statements December 31, 2021 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31:City Library Total 2022 $29,861 $46 $29,907 2023 41,394 64 41,458 2024 69,258 107 69,365 2025 69,260 107 69,367 2026 108,147 167 108,314 Thereafter 651,003 1,001 652,004 Total $968,923 $1,492 $970,415 Subsequent Event Subsequent to December 31, 2021, the investment markets have experienced significant volatility. It is highly likely that the values of the City's investments have changed by material amounts since year end. Tax Increment Financing District The City of Galesburg has established several Tax Increment Redevelopment Project Areas (RPA's) to encourage redevelopment of certain sites for more market oriented commercial uses of the properties that will enhance their value and improve their contributions to the City and its surrounding areas. As part of the redevelopment plans, the City has made significant improvements to utilities, public parking, intersections and traffic signalization, streets and landscaping. The redevelopment plans also include site preparation, land acquisition and assembly and demolition/clearance. Construction and development in the RPA's were the responsibility of developers and are substantially complete. To entice development of the areas, the City created tax increment financing (TIF) districts to finance public improvements made within the RPA's. Several funds have been established to record the revenues generated in the RPA's that relate directly to servicing the debt issued to make public improvements in the RPA's. Tax Abatement Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. The City is disclosing individual abatement agreements over $100,000 individually and agreements under $100,000 in the aggregate. 90 City of Galesburg Notes to Financial Statements December 31, 2021 The City, through its Tax Incremental Financing Districts 2, 3, 4 and 5, has entered into tax abatement agreements with developers in the form of tax increment financing incentive payments to stimulate economic development. The abatements are authorized through City Council resolutions for the reimbursement of property tax increment for various projects such as construction of a Holiday Inn Express Hotel and rehabilitatation of property for a car reconditioning business. The developers pay property taxes as they become due and after meeting the criteria established in the development agreements, are entitled to a future incentive payments that directly correlate to the taxes paid. Incentive payments for the year ended December 31, 2021 totaled $174,890. Individual agreements with payments in the year exceeding $100,000 are as follows: Ag reement Description Calculation Method Developer Commitment Current Year Payments Janko Group - Holiday Inn Express In dollars, not to exceed $1,420,720 Construction and operation of Holiday Inn Express and property taxes to be paid in full for each given year $173,890 The City has entered into tax abatement agreements with developers in the form of sales tax rebate incentive payments to stimulate economic development. The abatements are authorized through City Council resolutions. The developers make sales tax payments as they become due and, after meeting the criteria established in the development agreements, are entitled to incentive payments that directly correlate to the taxes paid. The incentives are calculated based on a percentage of sales taxes paid by the developers, with cumulative not to exceed maximum payments. The developer commitments include the construction and operation of a Kohl's store and rehabilitation of an existing building for the operation of a furniture store. Total incentive payments for the year ended December 31, 2021 were $70,475. 91 City of Galesburg Notes to Financial Statements December 31, 2021 Effect of New Accounting Standards on Current-Period Financial Statements The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 87, Leases Statement No. 91, Conduit Debt Obligations Statement No. 92, Omnibus 2020 Statement No. 93, Replacement of Interbank Offered Rates Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements Statement No. 96, Subscription-Based Information Technology Arrangements Statement No. 97, Certain Component Unit Criteria and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84 and a supersession of GASB Statement No. 32 Statement No. 99, Omnibus 2022 Statement No. 100, Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62 Statement No. 101, Compensated Absences When they become effective, application of these standards may restate portions of these financial statements. 92 R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N See notes to required supplementary information 93 City of Galesburg, Illinois Illinois Municipal Retirement Fund Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Seven Fiscal Years City Library Total City Library Total Total Pension Liability Service cost 835,600$ 51,869$ 887,469$ 769,916$ 47,792$ 817,708$ Interest changes of benefit terms 3,654,093 226,824 3,880,917 3,800,892 362,372 4,163,264 Differences between expected and actual experience 329,002 20,422 349,424 1,207,175 74,934 1,282,109 Changes of assumptions 1,805,007 112,044 1,917,051 66,792 4,146 70,938 Benefit payments, including refunds of member contributions (2,852,584) (177,071) (3,029,655) (3,100,373) (192,452) (3,292,825) Net change in total pension liability 3,771,118 234,088 4,005,206 2,744,402 296,792 3,041,194 Total Pension Liability, Beginning 49,729,729 3,086,918 52,816,647 53,500,848 3,321,005 56,821,853 Total Pension Liability, Ending 53,500,847$ 3,321,006$ 56,821,853$ 56,245,250$ 3,617,797$ 59,863,047$ Plan Fiduciary Net Position Employer contributions 1,068,399$ 66,320$ 1,134,719$ 996,715$ 61,870$ 1,058,585$ Employee contributions 335,832 20,846 356,678 352,560 21,885 374,445 Net investment income 2,874,053 178,404 3,052,457 242,344 15,043 257,387 Benefit payments, including refunds of member contributions (2,852,584) (177,071) (3,029,655) (3,100,373) (192,452) (3,292,825) Other (net transfer)78,748 4,888 83,636 1,015,743 63,051 1,078,794 Net change in plan fiduciary net position 1,504,448 93,387 1,597,835 (493,011) (30,603) (523,614) Plan Fiduciary Net Position, Beginning 47,839,804 2,969,603 50,809,407 49,344,253 3,062,989 52,407,242 Plan Fiduciary Net Position, Ending 49,344,252$ 3,062,990$ 52,407,242$ 48,851,242$ 3,032,386$ 51,883,628$ City's Net Pension Liability, Ending 4,156,595$ 258,016$ 4,414,611$ 7,394,008$ 585,411$ 7,979,419$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 92.23%86.67% Covered Payroll 7,926,152$ 8,027,563$ City's Net Pension Liability as a Percentage of Covered Payroll 55.70%99.40% Notes to Schedule: The City implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. Additional years' information will be presented as it becomes available. 20162015 See notes to required supplementary information 94 City Library Total City Library Total City Library Total 765,484$ 84,368$ 849,852$ 762,056$ 54,613$ 816,669$ 675,940$ 69,697$ 745,637$ 3,937,799 434,008 4,371,807 4,224,265 302,734 4,526,999 4,060,308 418,666 4,478,974 584,340 64,404 648,744 (38,975) (2,793) (41,768) 1,889,328 194,812 2,084,140 (338,553) 192,212 (146,341) (1,557,522) (408,326) (1,965,848) 1,602,544 229,937 1,832,481 (3,317,124) (365,600) (3,682,724) (3,644,305) (261,171) (3,905,476) (3,604,567) (371,674) (3,976,241) 1,631,946 409,392 2,041,338 (254,481) (314,943) (569,424) 4,623,553 541,438 5,164,991 56,245,250 3,617,797 59,863,047 57,877,196 4,027,189 61,904,385 57,622,715 3,712,246 61,334,961 57,877,196$ 4,027,189$ 61,904,385$ 57,622,715$ 3,712,246$ 61,334,961$ 62,246,268$ 4,253,684$ 66,499,952$ 1,232,864$ 135,881$ 1,368,745$ 1,088,795$ 78,029$ 1,166,824$ 1,017,042$ 104,869$ 1,121,911$ 332,082 36,601 368,683 336,127 24,089 360,216 361,455 37,270 398,725 3,142,696 346,375 3,489,071 9,205,609 659,725 9,865,334 (3,427,845) (353,452) (3,781,297) (3,317,124) (365,600) (3,682,724) (3,644,305) (261,171) (3,905,476) (3,604,567) (371,674) (3,976,241) (61,139) (6,739) (67,878) (1,601,466) (114,770) (1,716,236) 1,300,797 134,127 1,434,924 1,329,379 146,518 1,475,897 5,384,760 385,902 5,770,662 (4,353,118) (448,860) (4,801,978) 48,851,242 3,032,386 51,883,628 50,180,621 3,178,904 53,359,525 55,565,381 3,564,806 59,130,187 50,180,621$ 3,178,904$ 53,359,525$ 55,565,381$ 3,564,806$ 59,130,187$ 51,212,263$ 3,115,946$ 54,328,209$ 7,696,575$ 848,285$ 8,544,860$ 2,057,334$ 147,440$ 2,204,774$ 11,034,005$ 1,137,738$ 12,171,743$ 86.20%96.41%81.70% 8,024,144$ 8,004,796$ 8,116,006$ 106.49%27.54%149.97% 201920172018 See notes to required supplementary information 95 City of Galesburg, Illinois Illinois Municipal Retirement Fund Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Seven Fiscal Years City Library Total City Library Total Total Pension Liability Service cost 732,814$ 70,374$ 803,188$ 766,685$ 66,796$ 833,481$ Interest changes of benefit terms 4,283,308 411,339 4,694,647 4,414,161 384,578 4,798,739 Differences between expected and actual experience 181,337 17,414 198,751 703,455 61,288 764,743 Changes of assumptions 71,265 (71,265) - (557,293) (93,099) (650,392) Benefit payments, including refunds of member contributions (3,919,217) (376,374) (4,295,591) (3,915,263) (341,112) (4,256,375) Net change in total pension liability 1,349,507 51,488 1,400,995 1,411,745 78,451 1,490,196 Total Pension Liability, Beginning 62,246,268 4,253,684 66,499,952 63,595,775 4,305,172 67,900,947 Total Pension Liability, Ending 63,595,775$ 4,305,172$ 67,900,947$ 65,007,520$ 4,383,623$ 69,391,143$ Plan Fiduciary Net Position Employer contributions 1,018,167$ 97,778$ 1,115,945$ 1,226,214$ 106,832$ 1,333,046$ Employee contributions 339,011 32,556 371,567 384,039 33,459 417,498 Net investment income 9,768,518 938,100 10,706,618 8,549,012 744,821 9,293,833 Benefit payments, including refunds of member contributions (3,919,217) (376,374) (4,295,591) (3,915,263) (341,112) (4,256,375) Other (net transfer)177,239 17,021 194,260 (13,849) (1,207) (15,056) Net change in plan fiduciary net position 7,383,718 709,081 8,092,799 6,230,153 542,793 6,772,946 Plan Fiduciary Net Position, Beginning 51,212,263 3,115,946 54,328,209 58,595,981 3,825,027 62,421,008 Plan Fiduciary Net Position, Ending 58,595,981$ 3,825,027$ 62,421,008$ 64,826,134$ 4,367,820$ 69,193,954$ City's Net Pension Liability, Ending 4,999,795$ 480,144$ 5,479,939$ 181,386$ 15,803$ 197,189$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 91.93%99.72% Covered Payroll 8,205,963$ 9,074,516$ City's Net Pension Liability as a Percentage of Covered Payroll 66.78%2.17% 20212020 See notes to required supplementary information 96 2013 2014 2015 2016 City Actuarially determined contribution 957,491$ 937,996$ 922,958$ 887,566$ Contributions in relation to the actuarially determined contribution 1,068,399 996,715 1,232,864 1,050,988 Contribution deficiency (excess)(110,908)$ (58,719)$ (309,906)$ (163,422)$ Library Actuarially determined contribution 59,435$ 58,225$ 101,725$ 97,824$ Contributions in relation to the actuarially determined contribution 66,320 61,870 135,881 115,836 Contribution deficiency (excess)(6,885)$ (3,645)$ (34,156)$ (18,012)$ Total Actuarially determined contribution 1,016,926$ 996,221$ 1,024,683$ 985,390$ Contributions in relation to the actuarially determined contribution 1,134,719 1,058,585 1,368,745 1,166,824 Contribution deficiency (excess)(117,793)$ (62,364)$ (344,062)$ (181,434)$ Covered payroll 7,926,152$ 8,027,563$ 8,024,144$ 8,004,796$ Contributions as a percentage of covered payroll 14.32%13.19%17.06%14.58% Notes to Schedule: Additional years' information will be presented as it becomes available. Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry-age Amortization method Level percentage of payroll, closed Remaining amortization period 23 years Asset valuation method 5-year smoothed market, 20% corridor Inflation 2.50% Salary increases 3.35% to 14.25%, including inflation Investment rate of return 7.25% Retirement age Mortality RP-2014 CHBCA Other information: There were no benefit changes during the year. Experience-based table of rates that are specific to the type of eligibility condition The City implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2013 is not available. City of Galesburg, Illinois Illinois Municipal Retirement Fund Schedule of Employer Contributions Last Nine Fiscal Years See notes to required supplementary information 97 2017 2018 2019 2020 2021 919,494$ 968,973$ 795,116$ 1,226,214$ 1,147,886$ 1,088,795 1,017,042 1,018,167 1,226,214 1,153,515 (169,301)$ (48,069)$ (223,051)$ -$ (5,629)$ 65,896$ 99,913$ 76,357$ 106,832$ 101,328$ 78,029 104,869 97,778 106,832 101,825 (12,133)$ (4,956)$ (21,421)$ -$ (497)$ 985,390$ 1,068,886$ 871,473$ 1,333,046$ 1,249,214$ 1,166,824 1,121,911 1,115,945 1,333,046 1,255,340 (181,434)$ (53,025)$ (244,472)$ -$ (6,126)$ 8,004,796$ 8,116,066$ 8,205,963$ 9,074,516$ 9,420,918$ 14.58%13.82%13.60%14.69%13.33% See notes to required supplementary information 98 2015 2016 2017 Total Pension Liability Service cost 39,545$ 38,846$ 39,565$ Interest Changes of benefit terms 125,673 135,982 147,450 Differences between expected and actual experience (46,822) 57,357 81,275 Changes of assumptions 81,489 2,169 (2,299) Benefit payments, including refunds of member contributions (58,570) (65,588) (92,773) Net change in total pension liability 141,315 168,766 173,218 Total Pension Liability, Beginning 1,685,146 1,826,461 1,995,227 Total Pension Liability, Ending 1,826,461$ 1,995,227$ 2,168,445$ Plan Fiduciary Net Position Employer contributions 42,037$ 27,432$ 85,180$ Employee contributions 14,518 15,109 14,754 Net investment income 115,377 9,931 120,744 Benefit payments, including refunds of member contributions (58,570) (65,588) (92,773) Other (net transfer)(8,101) 53,387 92,832 Net change in plan fiduciary net position 105,261 40,271 220,737 Plan Fiduciary Net Position, Beginning 1,892,437 1,997,698 2,037,969 Plan Fiduciary Net Position, Ending 1,997,698$ 2,037,969$ 2,258,706$ City's Net Pension Liability (Asset), Ending (171,237)$ (42,742)$ (90,261)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (Asset)109.38%102.14%104.16% Covered Payroll 322,617$ 335,770$ 327,860$ City's Net Pension Liability (Asset) as a Percentage of Covered Payroll (53.08)%(12.73)%(27.53)% City of Galesburg, Illinois Illinois Municipal Retirement Fund - Town of the City of Galesburg Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Seven Fiscal Years See notes to required supplementary information 99 2018 2019 2020 2021 36,130$ 37,441$ 41,784$ 38,008$ 159,334 161,356 167,692 172,660 31,466 32,820 3,258 110,107 (74,508) 57,544 - (19,517) (124,101) (128,149) (131,367) (153,264) 28,321 161,012 81,367 147,994 2,168,445 2,196,766 2,357,778 2,439,145 2,196,766$ 2,357,778$ 2,439,145$ 2,587,139$ 29,373$ 34,574$ 23,000$ 31,127$ 15,496 17,023 17,279 16,440 390,255 (149,226) 427,878 365,840 (124,101) (128,149) (131,367) (153,264) (223,039) 49,301 15,559 30,286 87,984 (176,477) 352,349 290,429 2,258,706 2,346,690 2,170,213 2,522,562 2,346,690$ 2,170,213$ 2,522,562$ 2,812,991$ (149,924)$ 187,565$ (83,417)$ (225,852)$ 106.82%92.04%103.42%108.73% 344,345$ 378,277$ 383,980$ 365,341$ (43.54)%49.58%(21.72)%(61.82)% See notes to required supplementary information 100 2014 2015 2016 2017 2018 Actuarially determined contribution 42,037$ 27,432$ 25,180$ 29,373$ 34,575$ Contributions in relation to the actuarially determined contribution 42,037 27,432 85,180 29,373 34,574 Contribution deficiency (excess)-$ -$ (60,000)$ -$ 1$ Covered payroll 322,617$ 335,770$ 327,860$ 344,345$ 378,277$ Contributions as a percentage of covered payroll 13.03%8.17%25.98%8.53%9.14% 2019 2020 2021 Actuarially determined contribution 23,000$ 31,127$ N/A Contributions in relation to the actuarially determined contribution 23,000 31,127 28,127 Contribution deficiency (excess)-$ -$ N/A Covered payroll 383,980$ 365,341$ N/A Contributions as a percentage of covered payroll 5.99%8.52%N/A Notes to Schedule: N/A - Fiscal year 2021 information not available. Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry-age Amortization method Level percentage of payroll, closed Remaining amortization period 23 years Asset valuation method 5-year smoothed market, 20% corridor Inflation 2.50% Salary increases 3.35% to 14.25%, including inflation Investment rate of return 7.25% Retirement age Experience-based table of rates that are specific to the type of eligibility condition Mortality RP-2014 CHBCA Schedule of Employer Contributions Last Seven Fiscal Years City of Galesburg, Illinois Illinois Municipal Retirement Fund - Town of the City of Galesburg The City implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. See notes to required supplementary information 101 2014 2015 2016 2017 Total Pension Liability Service cost 740,298$ 749,291$ 842,309$ 896,385$ Interest changes of benefit terms 2,742,481 3,080,281 3,193,581 3,514,250 Differences between expected and actual experience 241,625 3,636,322 (2,001,887) 97,635 Changes of assumptions 3,562,950 - 5,293,940 (1,052,662) Change of benefit terms - - - - Benefit payments, including refunds of member contributions (2,212,992) (2,615,062) (2,400,732) (2,602,347) Net change in total pension liability 5,074,362 4,850,832 4,927,211 853,261 Total Pension Liability, Beginning 41,014,184 46,088,546 50,939,378 55,866,589 Total Pension Liability, Ending 46,088,546$ 50,939,378$ 55,866,589$ 56,719,850$ Plan Fiduciary Net Position Employer contributions 1,432,332$ 2,264,616$ 1,956,983$ 2,383,891$ Employee contributions 314,238 464,316 326,120 466,106 Net investment income 996,571 (419,932) 1,170,666 2,748,342 Benefit payments, including refunds of member contributions (2,212,992) (2,615,062) (2,400,732) (2,602,347) Administration (87,266) (27,329) (24,498) (22,507) Net change in plan fiduciary net position 442,883 (333,391) 1,028,539 2,973,485 Plan Fiduciary Net Position, Beginning 23,095,800 23,538,683 23,205,292 24,233,831 Plan Fiduciary Net Position, Ending 23,538,683$ 23,205,292$ 24,233,831$ 27,207,316$ City's Net Pension Liability, Ending 22,549,863$ 27,734,086$ 31,632,758$ 29,512,534$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 51.07%45.55%43.38%47.97% Covered Payroll 3,099,328$ 3,196,939$ 3,155,088$ 3,249,741$ City's Net Pension Liability as a Percentage of Covered Payroll 727.57%867.52%1002.60%908.15% City of Galesburg, Illinois Police Pension Plan Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Eight Fiscal Years The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. See notes to required supplementary information 102 2018 2019 2020 2021 818,991$ 883,167$ 1,121,695$ 1,257,913$ 3,628,841 3,720,839 3,965,432 3,850,253 49,905 688,209 2,356,363 (2,962,803) 1,622,665 8,905,010 5,274,383 4,143,452 - 103,606 - - (2,804,292) (2,880,141) (3,126,243) (3,346,556) 3,316,110 11,420,690 9,591,630 2,942,259 56,719,850 60,035,960 71,456,650 81,048,280 60,035,960$ 71,456,650$ 81,048,280$ 83,990,539$ 2,199,249$ 2,229,641$ 2,423,797$ 2,287,839$ 357,688 332,353 442,514 391,329 (1,608,006) 3,912,366 2,417,041 3,864,471 (2,804,292) (2,880,141) (3,126,243) (3,349,556) (22,577) (22,719) (24,140) (26,414) (1,877,938) 3,571,500 2,132,969 3,167,669 27,207,316 25,329,378 28,900,878 31,033,847 25,329,378$ 28,900,878$ 31,033,847$ 34,201,516$ 34,706,582$ 42,555,772$ 50,014,433$ 49,789,023$ 42.19%40.45%38.29%40.72% 3,213,880$ 3,340,278$ 3,440,486$ 3,431,701$ 1079.90%1274.02%1453.70%1450.86% See notes to required supplementary information 103 2012 2013 2014 2015 2016 Actuarially determined contribution 1,455,588$ 1,438,309$ 1,657,194$ 2,294,319$ 2,650,318$ Contributions in relation to the actuarially determined contribution 937,749 1,396,761 1,432,332 2,264,616 1,956,983 Contribution deficiency (excess)517,839$ 41,548$ 224,862$ 29,703$ 693,335$ Covered payroll 3,216,974$ 3,196,108$ 3,099,328$ 3,196,939$ 3,155,088$ Contributions as a percentage of covered payroll 29.15%43.70%46.21%70.84%62.03% 2017 2018 2019 2020 2021 Actuarially determined contribution 2,511,651$ 2,528,343$ 2,780,269$ 2,780,269$ 3,108,165$ Contributions in relation to the actuarially determined contribution 2,383,891 2,199,249 2,229,641 2,423,797 2,287,839 Contribution deficiency (excess)127,760$ 329,094$ 550,628$ 356,472$ 820,326$ Covered payroll 3,249,741$ 3,213,880$ 3,340,278$ 3,440,486$ 3,431,701$ Contributions as a percentage of covered payroll 73.36%68.43%66.75%70.45%66.67% Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Other information: The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. Mortality rates were based on the Pub-2010 Adjusted for Plan Status, Demographics, and Illinois Public Pension Data City of Galesburg, Illinois Police Pension Plan Schedule of Employer Contributions Last Ten Fiscal Years Capped at age 65 2.25% 6.75% Entry-Age Normal Level percentage of payroll 17 years 5-year smoothed market 3.75% - 4.78% See notes to required supplementary information 104 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 4.37%(1.68)%4.57%10.67%(6.77)% 2019 2020 2021 Annual money-weighted rate of return, net of investment expense 16.50%8.91%13.58% Notes to Schedule: City of Galesburg, Illinois Police Pension Plan Schedule of Investment Returns Last Eight Fiscal Years The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. See notes to required supplementary information 105 2014 2015 2016 2017 Total Pension Liability Service cost 661,464$ 682,458$ 764,601$ 814,759$ Interest changes of benefit terms 2,719,284 2,922,284 2,930,958 3,469,190 Differences between expected and actual experience (850,986) 716,526 (379,449) (47,767) Changes of assumptions 3,937,830 - 7,765,648 2,278,343 Benefit payments, including refunds of member contributions (2,655,288) (2,763,804) (2,875,718) (2,867,506) Net change in total pension liability 3,812,304 1,557,464 8,206,040 3,647,019 Total Pension Liability, Beginning 40,747,439 44,559,810 46,117,274 54,323,314 Total Pension Liability, Ending 44,559,743$ 46,117,274$ 54,323,314$ 57,970,333$ Plan Fiduciary Net Position Employer contributions 1,600,784$ 2,328,400$ 2,096,966$ 2,112,413$ Employee contributions 257,374 289,576 263,295 268,377 Net investment income 932,616 (202,440) 1,161,600 2,597,853 Benefit payments, including refunds of member contributions (2,655,288) (2,763,804) (2,875,718) (2,867,506) Other - - - - Administration (25,441) (25,879) (24,462) (23,116) Net change in plan fiduciary net position 110,045 (374,147) 621,681 2,088,021 Plan Fiduciary Net Position, Beginning 21,013,866 21,123,911 20,749,764 21,371,445 Plan Fiduciary Net Position, Ending 21,123,911$ 20,749,764$ 21,371,445$ 23,459,466$ City's Net Pension Liability, Ending 23,435,832$ 25,367,510$ 32,951,869$ 34,510,867$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 47.41%44.99%39.34%40.47% Covered Payroll 2,611,787$ 2,742,445$ 2,719,370$ 2,800,951$ City's Net Pension Liability as a Percentage of Covered Payroll 897%925%1212%1232% The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional will be presented as it becomes available. City of Galesburg, Illinois Firefighters' Pension Plan Schedule of Changes in the City's Net Pension Liability and Related Ratios Last Eight Fiscal Years See notes to required supplementary information 106 2018 2019 2020 2021 912,463$ 935,109$ 1,238,084$ 1,279,591$ 3,525,942 3,723,946 3,620,103 3,405,605 (144,691) 706,327 575,990 (4,941,167) 377,989 7,178,008 2,891,832 2,667,256 (2,929,709) (3,085,029) (3,222,012) (3,408,182) 1,741,994 9,458,361 5,103,997 (996,897) 57,970,333 59,712,327 69,170,688 74,274,685 59,712,327$ 69,170,688$ 74,274,685$ 73,277,788$ 2,389,691$ 2,522,306$ 2,697,162$ 2,547,344$ 276,331 282,177 294,398 287,461 (1,234,318) 3,543,455 3,108,833 1,977,162 (2,929,709) (3,085,029) (3,222,012) (3,408,182) - - - 283 (23,482) (22,427) (24,543) (26,223) (1,521,487) 3,240,482 2,853,838 1,377,845 23,459,466 21,937,979 25,178,461 28,032,299 21,937,979$ 25,178,461$ 28,032,299$ 29,410,144$ 37,774,348$ 43,992,227$ 46,242,386$ 43,867,644$ 36.74%36.40%37.74%40.14% 2,919,494$ 2,984,419$ 3,073,952$ 3,040,305$ 1294%1474%1504%1443% years' information See notes to required supplementary information 107 2012 2013 2014 2015 2016 Actuarially determined contribution 1,455,588$ 1,607,765$ 1,708,503$ 2,482,676$ 2,482,676$ Contributions in relation to the actuarially determined contribution 1,330,584 1,453,831 1,600,784 2,328,400 2,096,966 Contribution deficiency (excess)125,004$ 153,934$ 107,719$ 154,276$ 385,710$ Covered payroll 2,799,133$ 2,775,756$ 2,611,787$ 2,742,445$ 2,719,370$ Contributions as a percentage of covered payroll 47.54%52.38%61.29%84.90%77.11% 2017 2018 2019 2020 2021 Actuarially determined contribution 2,734,369$ 2,833,708$ 3,054,249$ 3,054,249$ 3,337,911$ Contributions in relation to the actuarially determined contribution 2,112,413 2,389,691 2,522,306 2,697,162 2,547,344 Contribution deficiency (excess)621,956$ 444,017$ 531,943$ 357,087$ 790,567$ Covered payroll 2,800,951$ 2,919,494$ 2,984,419$ 3,073,952$ 3,040,305$ Contributions as a percentage of covered payroll 75.42%81.85%84.52%87.74%83.79% Valuation date: Actuarially determined contributions are calculated as of December 31 of the prior fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Other information: The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. City of Galesburg, Illinois Firefighters' Pension Plan Schedule of Employer Contributions Last Ten Fiscal Years Entry-Age Normal Capped at age 65 Level percentage of payroll 17 years 5-year smoothed market 2.25% 3.75% - 7.30% 6.75% Mortality rates were based on the Pub-2010 Adjusted for Plan Status, Demographics, and Illinois Public Pension Data See notes to required supplementary information 108 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 5.56%(0.58)%5.63%11.59%(5.20)% 2019 2020 2021 Annual money-weighted rate of return, net of investment expense 17.18%11.59%7.64% Notes to Schedule: City of Galesburg, Illinois Firefighters' Pension Plan Schedule of Investment Returns Last Eight Fiscal Years The City implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Additional years' information will be presented as it becomes available. See notes to required supplementary information 109 2017 2018 2019 2020 2021 Total OPEB Liability Service cost 574,551$ 559,749$ 395,016$ 530,708$ 743,173$ Interest 626,832 511,066 541,415 395,452 318,982 Differences between expected and actual experience - (1,446,729) - (299,490) - Changes of assumptions 1,302,625 (227,643) 1,201,614 1,796,429 234,877 Benefit payments, including refunds of member contributions (1,063,653) (1,006,877) (1,087,427) (837,332) (868,732) Administration (429) (610) (847) (1,009) (1,306) Net change in total OPEB liability 1,439,926 (1,611,044) 1,049,771 1,584,758 426,994 Total OPEB Liability, Beginning 13,920,078 15,360,004 13,748,960 14,798,731 16,383,489 Total OPEB Liability, Ending 15,360,004$ 13,748,960$ 14,798,731$ 16,383,489$ 16,810,483$ Plan Fiduciary Net Position Employer contributions 1,190,668$ 1,137,342$ 1,220,587$ 973,397$ 1,009,207$ Net investment income 106,704 (61,778) 197,562 177,974 227,594 Benefit payments, including refunds of member contributions (1,063,653) (1,006,877) (1,087,427) (837,332) (868,732) Administration (429) (610) (847) (1,009) (1,306) Net change in plan fiduciary net position 233,290 68,077 329,875 313,030 366,763 Plan Fiduciary Net Position, Beginning 698,934 932,224 1,000,301 1,330,176 1,643,206 Plan Fiduciary Net Position, Ending 932,224$ 1,000,301$ 1,330,176$ 1,643,206$ 2,009,969$ City's Net OPEB Liability, Ending 14,427,780$ 12,748,659$ 13,468,555$ 14,740,283$ 14,800,514$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 6.07%7.28%8.99%10.03%11.96% Covered Payroll 13,860,508$ 14,062,479$ 14,554,666$ 15,768,309$ 16,320,200$ City's Net OPEB Liability as a Percentage of Covered Payroll 104.09%90.66%92.54%93.48%90.69% Notes To Schedule: The City implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2017 is not available. City of Galesburg, Illinois Other Postemployment Benefit Plan Schedule of Changes in the City's Net OPEB Liability and Related Ratios Last Five Fiscal Years See notes to required supplementary information 110 2012 2013 2014 2015 2016 Actuarially determined contribution 803,479$ 1,167,256$ 1,167,256$ 1,039,995$ 1,039,995$ Contributions in relation to the actuarially determined contribution 627,391 1,420,787 1,548,657 944,242 1,024,503 Contribution deficiency (excess)176,088$ (253,531)$ (381,401)$ 95,753$ 15,492$ Covered payroll 14,134,413$ 13,833,624$ 14,317,802$ 14,317,373$ 14,818,481$ Contributions as a percentage of covered payroll 4.44%10.27%10.82%6.60%6.91% 2017 2018 2019 2020 2021 Actuarially determined contribution 1,254,235$ 1,095,487$ 1,087,427$ 837,332$ 868,732$ Contributions in relation to the actuarially determined contribution 1,190,668 1,137,342 1,220,587 973,397 1,009,207 Contribution deficiency (excess)63,567$ (41,855)$ (133,160)$ (136,065)$ (140,475)$ Covered payroll 13,860,508$ 14,062,479$ 14,554,666$ 15,768,309$ 16,320,200$ Contributions as a percentage of covered payroll 8.59%8.09%8.39%6.17%6.18% Notes to Schedule Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases 3.50% Investment rate of return 1.84% Future medical plan participation 50% of Library, Township, and City Assessor employees; 100% of all other employees Healthcare cost trend rates Mortality City of Galesburg, Illinois Other Postemployment Benefit Plan Schedule of Employer Contributions Last Ten Fiscal Years Entry-age normal 7.5% initial, decreasing in increments of 0.5% annually to an ultimate rate of 4.0% for 2028 and after RP-2014 Blue Collar base rates projected to 2020 using scale MP2020 for Police and Fire participants; RP-2014 base rates projected to 2020 using scale MP2020 for other participants Level percentage of payroll, closed 30 years Market value 2.50% See notes to required supplementary information 111 2017 2018 2019 2020 2021 Annual money-weighted rate of return, net of investment expense 15.33%(6.39)%16.95%11.97%12.96% Notes to Schedule: The Plan implemented GASB Statement No. 74 in fiscal year 2017. Information prior to fiscal year 2017 is not available. City of Galesburg, Illinois Other Postemployment Benefit Plan Schedule of Investment Returns Last Five Fiscal Years See notes to required supplementary information 112 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property taxes 7,798,360$ 7,798,360$ 7,757,968$ (40,392)$ Other taxes 4,552,050 6,259,170 6,261,140 1,970 Intergovernmental 9,194,795 12,497,600 12,481,424 (16,176) Licenses and permits 410,925 380,600 387,349 6,749 Charges for services 1,014,855 1,145,530 1,186,930 41,400 Fines and fees 276,450 370,780 404,069 33,289 Use of money and property 483,600 513,965 510,165 (3,800) Miscellaneous 20,800 47,375 47,412 37 Total revenues 23,751,835 29,013,380 29,036,457 23,077 Expenditures Current: Mayor and city council 121,535 157,940 157,935 5 City manager 290,660 301,560 293,890 7,670 Legal 200,685 200,685 183,484 17,201 Human resources and benefits 236,095 236,095 214,132 21,963 City clerk 362,660 362,660 354,609 8,051 Management information systems 458,575 479,805 431,327 48,478 Finance 837,275 837,275 803,340 33,935 Planning 126,270 126,270 86,914 39,356 Fire and police commission 26,635 28,110 28,106 4 Contracts and subsidies 1,260,685 2,521,160 2,156,317 364,843 Police department 7,233,935 7,302,080 7,321,076 (18,996) School crossing guards 67,160 67,160 44,778 22,382 Communications and records 2,075,210 2,143,420 2,122,782 20,638 Fire department 7,084,210 7,197,670 7,193,371 4,299 Emergency services 11,015 11,015 7,112 3,903 Inspection 739,635 769,875 756,340 13,535 Engineering 582,800 582,800 543,366 39,434 Motor pool, central garage 515,500 515,500 502,686 12,814 Street and bridge maintenance 1,640,810 1,640,810 1,603,994 36,816 Capital outlay - 94,700 94,685 15 Total expenditures 23,871,350 25,576,590 24,900,244 676,346 Excess of revenue over expenditures (119,515) 3,436,790 4,136,213 699,423 Other Financing Sources (Uses) Proceeds from the sale of assets 8,500 8,500 4,915 (3,585) Transfers in - 6,630 6,633 (3) Transfers out (427,000) (2,488,405) (2,492,890) (4,485) Total other financing sources (uses)(418,500) (2,473,275) (2,481,342) (8,073) Net change in fund balance (538,015)$ 963,515$ 1,654,871 691,356$ Fund Balances, Beginning of Year 11,929,132 Fund Balances, End of Year 13,584,003$ Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund City of Galesburg, Illinois Required Supplementary Information Year Ended December 31, 2021 See notes to required supplementary information 113 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Other taxes 851,500$ 1,128,205$ 1,128,206$ 1$ Use of money and property 60,110 62,560 57,263 (5,297) Total revenues 911,610 1,190,765 1,185,469 (5,296) Expenditures Current: Economic development 707,615 586,290 360,721 225,569 Miscellaneous 2,138,070 2,273,575 468,727 1,804,848 Total expenditures 2,845,685 2,859,865 829,448 2,030,417 Excess (deficiency) of revenue over expenditures (1,934,075) (1,669,100) 356,021 2,025,121 Other Financing Sources (Uses) Transfers in 96,050 195,780 197,304 (1,524) Transfers out (553,230) (553,230) (353,396) 199,834 Total other financing sources (uses)(457,180) (357,450) (156,092) 201,358 Net change in fund balance (2,391,255)$ (2,026,550)$ 199,929 2,226,479$ Fund Balances, Beginning 11,398,418 Fund Balances, Ending 11,598,347$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Economic Development - Major Special Revenue Fund Year Ended December 31, 2021 See notes to required supplementary information 114 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Property 224,435$ 224,435$ 223,818$ (617)$ Other taxes 1,291,750 1,781,905 1,781,914 9 Intergovernmental 1,541,300 1,928,220 1,930,807 2,587 Charges for services 44,700 44,700 44,211 (489) Use of money and property 991,400 874,295 893,937 19,642 Miscellaneous 28,850 45,045 45,807 762 Total revenues 4,122,435 4,898,600 4,920,494 21,894 Expenditures Current: Buildings and grounds operations, public 133,990 133,990 130,781 3,209 Buildings and grounds operations 175,530 230,725 221,938 8,787 Forestry 266,345 266,345 203,831 62,514 Maintenance of Linwood Cemetery 183,985 183,985 143,410 40,575 Lake Storey pavilion 88,590 88,590 57,917 30,673 Lakeside waterpark 261,235 261,235 114,474 146,761 Hawthorne pool 101,755 116,755 108,184 8,571 Recreation special programs 219,615 219,615 75,218 144,397 Hawthorne gymnasium 23,415 23,415 16,100 7,315 Lakeside recreation facility 53,615 86,985 86,980 5 Lake Storey beach 26,110 55,270 51,917 3,353 Golf course 596,065 648,470 637,028 11,442 Recreation administration 2,019,515 2,065,785 2,044,666 21,119 Park operation and maintenance 414,175 465,595 440,439 25,156 Allison Campground 57,830 60,535 58,853 1,682 Total expenditures 4,621,770 4,907,295 4,391,736 515,559 Excess (deficiency) of revenue over expenditures (499,335) (8,695) 528,758 537,453 Other Financing Sources (Uses) Transfers in 4,800 4,800 8,707 3,907 Transfers out (17,215) (161,575) (159,539) 2,036 Total other financing sources (uses)(12,415) (156,775) (150,832) 5,943 Net change in fund balance (511,750)$ (165,470)$ 377,926 543,396$ Fund Balances, Beginning 2,030,694 Fund Balances, Ending 2,408,620$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Parks and Recreation Fund - Major Special Revenue Fund Year Ended December 31, 2021 See notes to required supplementary information 115 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 8,033,045$ 3,158,600$ 3,158,604$ 4$ Use of money and property - - 1 1 Total revenues 8,033,045 3,158,600 3,158,605 5 Expenditures Current: General government - 61,050 61,042 8 Public safety 846,915 965,740 275,213 690,527 Miscellaneous 6,336,130 7,151,715 3,031,100 4,120,615 Total expenditures 8,033,045 8,968,340 3,367,355 5,600,985 Excess (deficiency) of revenue over expenditures - (5,809,740) (208,750) 5,600,990 Other Financing Sources Transfers in - 124,775 124,774 1 Total other financing sources - 124,775 124,774 1 Net change in fund balances -$ (5,684,965)$ (83,976) 5,600,989$ Fund Balance (Deficit), Beginning (101,106) Fund Balance (Deficit), Ending (185,082)$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Grants Fund - Major Special Revenue Fund Year Ended December 31, 2021 See notes to required supplementary information 116 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 1,779,645$ 2,694,970$ 2,694,972$ 2$ Use of money and property 23,950 23,950 24,816 866 Miscellaneous - - 720 720 Total revenues 1,803,595 2,718,920 2,720,508 1,588 Expenditures Current: General government 2,254,980 2,244,610 2,125,928 118,682 Total expenditures 2,254,980 2,244,610 2,125,928 118,682 Excess (deficiency) of revenues over expenditures (451,385) 474,310 594,580 120,270 Other Financing Sources (Uses) Transfers in 310,000 90 90 - Transfers out - (10,370) (10,369) (1) Total other financing sources (uses)310,000 (10,280) (10,279) (1) Net change in fund balances (141,385)$ 464,030$ 584,301 120,271$ Fund Balance (Deficit), Beginning (1,099,318) Fund Balance (Deficit), Ending (515,017)$ City of Galesburg, Illinois Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Public Transportation Fund - Major Special Revenue Fund Year Ended December 31, 2021 City of Galesburg, Illinois Notes to Required Supplementary Information Year Ended December 31, 2021 Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. Budget amounts are as originally adopted by the City Council. All annual appropriations lapse at fiscal year end. In October and November, the Finance Director submits to the City Council a proposed operating budget for the fiscal year commencing January 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to December 31, the budget is legally approved by City Council. Formal budgetary integration is employed as a management control device during the year of the general fund and special revenue funds. The City is authorized to change budgeted amounts within any fund; however, revision must be approved by the City Council. No revisions can be made increasing the budget unless funding is available for the purpose of the revision. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the division level for the General Fund and the fund level for other funds. The appropriated budget is prepared by fund, function, department and division. Line items may exceed budgeted amounts if the budget for the division is equal to or less than the budget amount approved by the City Council. The City Council must approve revisions that alter the total expenditures of any fund. 117 S U P P L E M E N T A R Y I N F O R M A T I O N 118 Federal State City Motor Special Special Stormwater Foreign Gas Tax Fuel Tax Enforcement Enforcement Utility Fire Airport Assets Cash and cash equivalents 1,377,365$ 2,297,376$ 1$ 473,271$ 754,260$ 135,378$ 57,224$ Investments - - - - - - - Receivables: Property taxes - - - - - - - Other taxes - - - - - - 315 Accounts 57,892 - - 38 75,620 - 8,290 Accrued interest 96 - - - - - - Due from other governments - 229,240 - - - - - Due from other funds - - - - - - 10,179 Prepaid items 2,058 - - - 3,586 - 1,089 Property held for resale - - - - - - - Advances to other funds - - - - - - - Total assets 1,437,411$ 2,526,616$ 1$ 473,309$ 833,466$ 135,378$ 77,097$ Liabilities, Deferred Inflows of Resources, and Fund Balances (Deficits) Liabilities Accounts payable 28,448$ 148,263$ -$ 183$ 7,449$ 3,949$ 51,064$ Accrued liabilities 3,577 - - - 6,733 - 1,114 Due to other funds - - - 540 - - 17,700 Advances from other funds - - - - - - - Unearned revenue - - 1 - - - 4,455 Total liabilities 32,025 148,263 1 723 14,182 3,949 74,333 Deferred Inflows of Resources Unavailable revenue - - - - - - 77 Property taxes levied for future periods - - - - - - - Total deferred inflows of resources - - - - - - 77 Fund Balances (Deficits) Nonspendable 2,058 - - - 3,586 - 1,089 Restricted - 2,378,353 - 472,586 815,698 131,429 1,598 Committed 1,403,328 - - - - - - Assigned - - - - - - - Unassigned - - - - - - - Total fund balances (deficits 1,405,386 2,378,353 - 472,586 819,284 131,429 2,687 Total liabilities, deferred inflows of resources, and fund balances (deficits)1,437,411$ 2,526,616$ 1$ 473,309$ 833,466$ 135,378$ 77,097$ City of Galesburg, Illinois Nonmajor Governmental Funds Combining Balance Sheet December 31, 2021 Special Revenue Funds 119 Capital Projects Funds 2013A GO 2016 GO Public Town of the 2011C Bonds Bonds 2013A Property Transportation 911 City of Business Business Debt Business Redevelopment Projects Communication Galesburg Park District Service District 1,150,722$ 36,971$ -$ 1,383,504$ 3,791$ 474$ -$ -$ - - - - - - - - - - - 531,000 - - - - - - - - - - - 12,075 60,276 8,247 13,120 24,495 950 230,814 - - - - - - - - - - 51,805 - - - - - - - - - 800 - - - - - 220 - 899 10,664 - - - - 123,411 - - - - - - - - - - - - - - - 1,386,434$ 45,218$ 14,819$ 1,949,663$ 4,741$ 231,288$ -$ 12,075$ 900$ -$ -$ 1,417$ -$ -$ -$ -$ 393 - 1,937 26 1,150 - - - - - 12,882 - 1 230,814 - - - - - - - - - - 71,610 - - 4,750 2,640 474 - - 72,903 - 14,819 6,193 3,791 231,288 - - 51,805 - - - - 189,435 - 4,239 - - - 531,000 - - - - 51,805 - - 531,000 - 189,435 - 4,239 220 - 899 10,664 - - - - - 45,218 - 1,401,806 950 - - 7,836 1,261,506 - - - - - - - - - - - - - - - - - (899) - - (189,435) - - 1,261,726 45,218 - 1,412,470 950 (189,435) - 7,836 1,386,434$ 45,218$ 14,819$ 1,949,663$ 4,741$ 231,288$ -$ 12,075$ Debt Service Funds 120 TIF 3 Utility Tax Regency Building Capital Capital Repair &TIF TIF Computer Vehicle Projects Project Maintenance Downtown East Main Replacement Replacement Assets Cash and cash equivalents 527,989$ 2,515$ 2,389,789$ 47$ 515,671$ 1,169,393$ 2,957,495$ Investments - - 499,094 - - - 498,884 Receivables: Property taxes - 75,700 - - 415,600 - - Other taxes - - - - - - - Accounts 150,028 - - - - - - Accrued interest 25 - 122 - - 22 2 Due from other governments - - - - - - - Due from other funds - - - - - 111,300 622,020 Prepaid items - - - - - - - Property held for resale - - - - 69,984 - - Advances to other funds - - - - - 133,837 133,837 Total assets 678,042$ 78,215$ 2,889,005$ 47$ 1,001,255$ 1,414,552$ 4,212,238$ Liabilities, Deferred Inflows of Resources, and Fund Balances (Deficits) Liabilities Accounts payable 20,704$ -$ 14,024$ 47$ -$ 74,637$ 42$ Accrued liabilities - - - - - - - Due to other funds - - 8 - - - - Advances from other funds 669,185 368,123 - - - - - Unearned revenue - - - - - - - Total liabilities 689,889 368,123 14,032 47 - 74,637 42 Deferred Inflows of Resources Unavailable revenue - - - - - - - Property taxes levied for future periods - 75,700 - - 415,600 - - Total deferred inflows of resources - 75,700 - - 415,600 - - Fund Balances (Deficits) Nonspendable - - - - - - - Restricted - - 18,059 - 585,655 - - Committed - - 151,295 - - 233,679 - Assigned - - 2,705,619 - - 1,106,236 4,212,196 Unassigned (11,847) (365,608) - - - - - Total fund balances (deficits (11,847) (365,608) 2,874,973 - 585,655 1,339,915 4,212,196 Total liabilities, deferred inflows of resources, and fund balances (deficits)678,042$ 78,215$ 2,889,005$ 47$ 1,001,255$ 1,414,552$ 4,212,238$ City of Galesburg, Illinois Nonmajor Governmental Funds Combining Balance Sheet (Continued) December 31, 2021 Capital Projects Funds 121 East Total Players Capital Linwood Linwood Nonmajor Fields Planning TIF IV TIF V Cemetery Cemetery Funds 24,095$ 60,800$ 1,097,301$ 27,318$ 1,916$ 31,185$ 16,475,851$ - - - - 84,973 517,146 1,600,097 - - 361,900 8,200 - - 1,392,400 - - - - - - 12,390 - - - - 1,233 7,474 638,477 - - - - - - 267 - - - - - - 281,045 - 1,800,000 - - - - 2,544,299 - - - - - - 18,516 - - - - - - 193,395 - - - - - - 267,674 24,095$ 1,860,800$ 1,459,201$ 35,518$ 88,122$ 555,805$ 23,424,411$ -$ -$ 184,707$ 1,000$ -$ -$ 536,834$ - - - - - - 14,930 - - - - 1,233 7,474 270,652 - - - - - - 1,037,308 - - - - - - 83,930 - - 184,707 1,000 1,233 7,474 1,943,654 - - - - - - 245,556 - - 361,900 8,200 - - 1,392,400 - - 361,900 8,200 - - 1,637,956 - - - - 84,973 517,146 620,635 - - 912,594 26,318 1,916 31,185 6,831,201 - - - - - - 3,049,808 24,095 1,860,800 - - - - 9,908,946 - - - - - - (567,789) 24,095 1,860,800 912,594 26,318 86,889 548,331 19,842,801 24,095$ 1,860,800$ 1,459,201$ 35,518$ 88,122$ 555,805$ 23,424,411$ Permanent Funds 122 Federal State City Motor Special Special Stormwater Foreign Gas Tax Fuel Tax Enforcement Enforcement Utility Fire Airport Revenues Taxes 680,460$ -$ -$ -$ 781,046$ -$ 3,504$ Charges for services 527 - - - - - - Intergovernmental 3,933 1,985,082 - 12,510 2,229 59,106 2,688 Fines and fees - - - 5,169 - - - Use of money and property 3,248 2,712 - 622 676 75 250,322 Contributions - - - 1,000 - - - Miscellaneous - - - - - - - Total revenues 688,168 1,987,794 - 19,301 783,951 59,181 256,514 Expenditures Current: General government 660,857 - - - - - 246,306 Economic development - - - - - - - Public safety - - - 87,471 - 56,882 - Public works - 1,035,626 - - 490,783 - - Miscellaneous - - - - - - - Debt service: Principal - - - - - - - Interest and fiscal charges - - - - - - - Capital outlay 213,612 908,806 - - 13,925 - - Total expenditures 874,469 1,944,432 - 87,471 504,708 56,882 246,306 Excess (deficiency) of revenues over expenditures (186,301) 43,362 - (68,170) 279,243 2,299 10,208 Other Financing Sources (Uses) Transfers in - - - - - - 10,179 Transfers out - - - - - - (17,700) Total other financing sources (uses)- - - - - - (7,521) Net change in fund balances (186,301) 43,362 - (68,170) 279,243 2,299 2,687 Fund Balances (Deficits), Beginning 1,591,687 2,334,991 - 540,756 540,041 129,130 - Fund Balances (Deficits), Ending 1,405,386$ 2,378,353$ -$ 472,586$ 819,284$ 131,429$ 2,687$ City of Galesburg, Illinois Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2021 Special Revenue Funds 123 Capital Projects Funds 2013A GO 2016 GO Public Town of the 2011C Bonds Bond 2013A Property Transportation 911 City of Business Business Debt Business Redevelopment Projects Communication Galesburg Park District Service District -$ -$ -$ 529,637$ -$ -$ -$ 42,572$ 14,995 - - 24,000 - - - - 123,195 5,320 92,915 127,544 - - - - - - - - - - - - 596 32,177 - 547 88,296 53 - 3 - - - - - - - - - - - 24,571 - 57,891 - - 138,786 37,497 92,915 706,299 88,296 57,944 - 42,575 - 12,606 - 659,450 676 - - - 165,034 - - - - (89,689) - - - - 92,915 - - - - - - - - - - - - - - - - - - - - - - - - - 275,000 65,000 395,000 - - - - - 38,928 47,006 244,606 - - - - 11,263 - - - - 165,034 12,606 92,915 670,713 314,604 22,317 639,606 - (26,248) 24,891 - 35,586 (226,308) 35,627 (639,606) 42,575 215,464 10,369 - - 227,458 54,064 639,606 - - (131,407) - - - - - (40,626) 215,464 (121,038) - - 227,458 54,064 639,606 (40,626) 189,216 (96,147) - 35,586 1,150 89,691 - 1,949 1,072,510 141,365 - 1,376,884 (200) (279,126) - 5,887 1,261,726$ 45,218$ -$ 1,412,470$ 950$ (189,435)$ -$ 7,836$ Debt Service Funds 124 TIF 3 Utility Tax Regency Building Capital Capital Repair &TIF TIF Computer Vehicle Projects Project Maintenance Downtown East Main Replacement Replacement Revenues Taxes 1,585,761$ 74,943$ -$ 216,696$ 406,916$ -$ -$ Charges for services - - - - - - - Intergovernmental - - - - - 410,444 - Fines and fees - - - - - - - Use of money and property 1,890 31 2,344 313 424 4,275 7,486 Contributions - - - - - 1,200 - Miscellaneous - - (1,200) 591 - - 39,500 Total revenues 1,587,651 74,974 1,144 217,600 407,340 415,919 46,986 Expenditures Current: General government 179,793 - - - - 117,620 98,156 Economic development - - - 3,047 350 - - Public safety - - - - - - - Public works - - 108,985 - - - - Miscellaneous - - - - 173,890 - - Debt service: Principal - - - - - - - Interest and fiscal charges 14,642 - - - - - - Capital outlay 628,311 - 438,584 34,309 - 492,214 136,918 Total expenditures 822,746 - 547,569 37,356 174,240 609,834 235,074 Excess (deficiency) of revenues over expenditures 764,905 74,974 (546,425) 180,244 233,100 (193,915) (188,088) Other Financing Sources (Uses) Transfers in - - - - - 111,300 627,020 Transfers out (639,606) - - (510,964) (211,759) - - Total other financing sources (uses)(639,606) - - (510,964) (211,759) 111,300 627,020 Net change in fund balances 125,299 74,974 (546,425) (330,720) 21,341 (82,615) 438,932 Fund Balances (Deficits), Beginning (137,146) (440,582) 3,421,398 330,720 564,314 1,422,530 3,773,264 Fund Balances (Deficits), Ending (11,847)$ (365,608)$ 2,874,973$ -$ 585,655$ 1,339,915$ 4,212,196$ City of Galesburg, Illinois Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Year Ended December 31, 2021 Capital Projects Funds 125 East Total Players Capital Linwood Linwood Nonmajor Fields Planning TIF IV TIF V Cemetery Cemetery Funds -$ -$ 352,603$ 8,114$ -$ -$ 4,682,252$ - - - - - - 39,522 - - - - - - 2,824,966 - - - - - - 5,169 4,899 - 1,257 46 3,005 19,255 424,552 - - - - - - 2,200 - 5,800 - - - 19,500 146,653 4,899 5,800 353,860 8,160 3,005 38,755 8,125,314 - - - - 956 5,798 1,982,218 - - 7,569 - - - 86,311 - - - - - - 237,268 - - - - - - 1,635,394 - 195,000 379,301 1,000 - - 749,191 - - - - - - 735,000 - - - - - - 345,182 - - 114,096 - - - 2,992,038 - 195,000 500,966 1,000 956 5,798 8,762,602 4,899 (189,200) (147,106) 7,160 2,049 32,957 (637,288) - 1,800,053 543,942 - - - 4,239,455 - - - - (1,233) (7,474) (1,560,769) - 1,800,053 543,942 - (1,233) (7,474) 2,678,686 4,899 1,610,853 396,836 7,160 816 25,483 2,041,398 19,196 249,947 515,758 19,158 86,073 522,848 17,801,403 24,095$ 1,860,800$ 912,594$ 26,318$ 86,889$ 548,331$ 19,842,801$ Permanent Funds City of Galesburg, Illinois Nonmajor Governmental Funds December 31, 2021 Special Revenue Funds City Gas Tax Fund -To account for the four and one-half cent per gallon local gasoline tax used to help finance improvements made to local roads and streets. Motor Fuel Tax Fund -To account for the revenue and expenditures related to projects financed by the state gasoline tax collected and distributed by the State of Illinois. Federal Special Enforcement Fund -To account for the revenue and expenditures related to the forfeited assets received from the federal government and used for law enforcement purposes. State Special Enforcement Fund -To account for the revenue and expenditures related to the forfeited assets received from the State and used for law enforcement purposes. Stormwater Utility Fund -To account for the revenues and expenditures related to the stormwater management program. Foreign Fire Fund -To account for revenue and expenditures related to the foreign fire insurance board. Airport Fund -To account for airport funds. Property Redevelopment Fund -To account for funds from the sale of surplus City-owned properties which can be used to provide a source of funding for property redevelopment efforts. Public Transportation Projects Fund -To account for revenues and expenditures associated with capital projects and maintenance of the City's public transportation systems. 911 Communications Fund -To account for the services of the County-wide enhanced emergency telephone sys tem operated by the Galesburg Police Department staff and services division. Town of the City of Galesburg Fund -To account for the services provided by the City's blended component unit, the Town of the City of Galesburg. Debt Service Funds 2011C Business Park Fund -To account for servicing the refunding of the 2003 series bonds. 2013A GO Bonds Business District Fund -To account for servicing of the 2013A series general obligation bonds. 2016 GO Bond Debt Service Fund -To account for servicing of the 2016 series general obligation bonds. City of Galesburg, Illinois Nonmajor Governmental Funds December 31, 2021 Capital Projects Funds 2013A Business District Fund -To account for the use of proceeds from the 2013A series general obligation bonds for projects within the business district. Utility Tax Capital Projects Fund -To account for the use of proceeds from the electric and natural gas utility tax to fund capital improvements and infrastructure. TIF 3 Regency Capital Project Fund -To account for the revenue and expenditures related to the Regency Tax Increment Financing District. Building Repair and Maintenance Fund -To account for the repair and maintenance of major City-owned building components. TIF Downtown Fund -To account for the revenue and expenditures related to the Downtown Tax Increment Financing District. TIF East Main Fund -To account for the revenue and expenditures related to the East Main Tax Increment Financing District. Computer Replacement Fund -To account for the upgrade and replacement of all City computer hardware and software. Vehicle Replacement Fund -To account for the upgrade and replacement of all City vehicles. Players Fields Fund -To account for the repair and maintenance of player fields. Capital Planning Fund -This fund was established for the purpose of achieving high-impact, quality of life, or economic development pursuits that will further stabilize the City's revenue sources. TIF IV Fund -To account for the revenue and expenditures related to the central business district as well as East Main Street from the downtown to Chestnut Street. TIF V Fund -To account for the revenue and expenditures related to a small area located east of Interstate 74 along East Main Street. Permanent Funds Linwood Cemetery Fund -To account for the assets and trust earnings used to support the operation and maintenance of the Linwood Cemetery. East Linwood Cemetery Fund -To account for the assets and trust earnings used to support the operation and maintenance of the East Linwood Cemetery. 126 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Other taxes 660,000$ 680,460$ 680,460$ -$ Intergovernmental - - 3,933 3,933 Charges for services - - 527 527 Use of money and property 10,000 3,250 3,248 (2) Total revenues 670,000 683,710 688,168 4,458 Expenditures Current: General government 582,060 667,070 660,857 6,213 Capital outlay 300,000 222,490 213,612 8,878 Total expenditures 882,060 889,560 874,469 15,091 Net change in fund balance (212,060)$ (205,850)$ (186,301) 19,549$ Fund Balances, Beginning 1,591,687 Fund Balances, Ending 1,405,386$ Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual City of Galesburg, Illinois City Gas Tax Fund Year Ended December 31, 2021 127 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 2,094,500$ 1,985,080$ 1,985,082$ 2$ Use of money and property 25,000 2,715 2,712 (3) Total revenues 2,119,500 1,987,795 1,987,794 (1) Expenditures Current: Public works 1,320,000 1,328,840 1,035,626 293,214 Capital outlay 1,397,260 1,526,565 908,806 617,759 Total expenditures 2,717,260 2,855,405 1,944,432 910,973 Net change in fund balances (597,760)$ (867,610)$ 43,362 910,972$ Fund Balance, Beginning 2,334,991 Fund Balance, Ending 2,378,353$ City of Galesburg, Illinois Motor Fuel Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 128 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 15,000$ 5,000$ 12,510$ 7,510$ Fines and fees 12,000 12,000 5,169 (6,831) Use of money and property 2,000 2,000 622 (1,378) Contributions - - 1,000 1,000 Total revenues 31,000 21,000 19,301 (1,699) Expenditures Current: Public safety 45,565 94,445 87,471 6,974 Total expenditures 45,565 94,445 87,471 6,974 Net change in fund balances (14,565)$ (73,445)$ (68,170) 5,275$ Fund Balance, Beginning 540,756 Fund Balance, Ending 472,586$ City of Galesburg, Illinois State Special Enforcement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 129 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 693,990$ 781,045$ 781,046$ 1$ Intergovernmental 1,355 1,355 2,229 874 Use of money and property 2,500 670 676 6 Total revenues 697,845 783,070 783,951 881 Expenditures Current: Public works 508,645 508,645 490,783 17,862 Capital outlay 550,000 554,425 13,925 540,500 Total expenditures 1,058,645 1,063,070 504,708 558,362 Net change in fund balances (360,800)$ (280,000)$ 279,243 559,243$ Fund Balance, Beginning 540,041 Fund Balance, Ending 819,284$ City of Galesburg, Illinois Stormwater Utility Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 130 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 47,000$ 47,000$ 59,106$ 12,106$ Use of money and property - - 75 75 Total revenues 47,000 47,000 59,181 12,181 Expenditures Current: Public safety 11,230 56,885 56,882 3 Total expenditures 11,230 56,885 56,882 3 Net change in fund balances 35,770$ (9,885)$ 2,299 12,184$ Fund Balance, Beginning 129,130 Fund Balance, Ending 131,429$ City of Galesburg, Illinois Foreign Fire Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 131 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 500$ 500$ 3,504$ 3,004$ Intergovernmental - - 2,688 2,688 Use of money and property 216,910 249,185 250,322 1,137 Total revenues 217,410 249,685 256,514 6,829 Expenditures Current: General government 234,625 258,480 246,306 12,174 Total expenditures 234,625 258,480 246,306 12,174 Excess (deficiency) of revenues over expenditures (17,215) (8,795) 10,208 19,003 Other Financing Sources (Uses) Transfers in 17,215 17,215 10,179 7,036 Transfers out - (17,700) (17,700) - Total other financing sources (uses)17,215 (485) (7,521) 7,036 Net change in fund balances -$ (9,280)$ 2,687 11,967$ Fund Balance, Beginning - Fund Balance, Ending 2,687$ City of Galesburg, Illinois Airport Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 132 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental -$ 123,195$ 123,195$ -$ Charges for services 337,500 14,970 14,995 25 Use of money and property 6,000 600 596 (4) Total revenues 343,500 138,765 138,786 21 Expenditures Current: General government 885,105 885,105 165,034 720,071 Total expenditures 936,305 936,305 165,034 771,271 Excess (deficiency) of revenues over expenditures (592,805) (797,540) (26,248) 771,292 Other Financing Sources Transfers in 355,000 215,465 215,464 1 Total other financing sources 355,000 215,465 215,464 1 Net change in fund balances (237,805)$ (582,075)$ 189,216 771,291$ Fund Balance, Beginning 1,072,510 Fund Balance, Ending 1,261,726$ City of Galesburg, Illinois Property Redevelopment Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 133 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental -$ 5,320$ 5,320$ -$ Use of money and property - 32,165 32,177 12 Total revenues - 37,485 37,497 12 Expenditures Current: General government - 12,610 12,606 4 Total expenditures - 12,610 12,606 4 Excess of revenues over expenditures - 24,875 24,891 16 Other Financing Sources (Uses) Transfers in - 10,370 10,369 1 Transfers out - (131,410) (131,407) (3) Total other financing sources (uses)- (121,040) (121,038) (2) Net change in fund balances -$ (96,165)$ (96,147) 18$ Fund Balance, Beginning 141,365 Fund Balance, Ending 45,218$ City of Galesburg, Illinois Public Transportation Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 134 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental 122,535$ 92,915$ 92,915$ -$ Total revenues 122,535 92,915 92,915 - Expenditures Current: Public safety 122,535 122,535 92,915 29,620 Total expenditures 122,535 122,535 92,915 29,620 Net change in fund balances -$ (29,620)$ - 29,620$ Fund Balance, Beginning - Fund Balance, Ending -$ City of Galesburg, Illinois 911 Communication Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 135 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 531,000$ 531,000$ 529,637$ (1,363)$ Charges for services 24,000 24,000 24,000 - Intergovernmental 60,000 60,000 127,544 67,544 Use of money and property 9,685 9,685 547 (9,138) Miscellaneous - - 24,571 24,571 Total revenues 624,685 624,685 706,299 81,614 Expenditures Current: General government 1,043,430 1,043,430 659,450 383,980 Capital outlay 12,000 12,000 11,263 737 Total expenditures 1,055,430 1,055,430 670,713 384,717 Net change in fund balances (430,745)$ (430,745)$ 35,586 466,331$ Fund Balance, Beginning 1,376,884 Fund Balance, Ending 1,412,470$ City of Galesburg, Illinois Town of the City of Galesburg Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 136 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 101,430$ 88,525$ 88,296$ (229)$ Total revenues 101,430 88,525 88,296 (229) Expenditures Current: General government 700 700 676 24 Debt service: Principal 275,000 275,000 275,000 - Interest and fiscal charges 38,930 38,930 38,928 2 Total expenditures 314,630 314,630 314,604 26 Deficiency of revenues over expenditures (213,200) (226,105) (226,308) (203) Other Financing Sources Transfers in 213,200 227,460 227,458 (2) Total other financing sources 213,200 227,460 227,458 (2) Net change in fund balances -$ 1,355$ 1,150 (205)$ Fund Balance (Deficit), Beginning (200) Fund Balance, Ending 950$ City of Galesburg, Illinois 2011C Business Park Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 137 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property -$ -$ 53$ 53$ Miscellaneous - 57,890 57,891 1 Total revenues - 57,890 57,944 54 Expenditures Current: Economic development - - (89,689) 89,689 Debt service: Principal 65,000 65,000 65,000 - Interest and fiscal charges 47,080 47,080 47,006 74 Total expenditures 112,080 112,080 22,317 89,763 Excess (deficiency) of revenues over expenditures (112,080) (54,190) 35,627 89,817 Other Financing Sources Transfers in 112,080 54,065 54,064 (1) Total other financing sources 112,080 54,065 54,064 (1) Net change in fund balances -$ (125)$ 89,691 89,816$ Fund Balance (Deficit), Beginning (279,126) Fund Balance (Deficit), Ending (189,435)$ City of Galesburg, Illinois 2013A GO Bonds Business District Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 138 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Total revenues -$ -$ -$ -$ Expenditures Debt service: Principal 395,000 395,000 395,000 - Interest and fiscal charges 242,215 244,610 244,606 4 Total expenditures 637,215 639,610 639,606 4 Other Financing Sources Transfers in 637,215 639,605 639,606 1 Total other financing sources 637,215 639,605 639,606 1 Net change in fund balances -$ (5)$ - 5$ Fund Balance, Beginning - Fund Balance, Ending -$ City of Galesburg, Illinois 2016 GO Bond Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 139 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 27,000$ 42,570$ 42,572$ 2$ Use of money and property 50 50 3 (47) Total revenues 27,050 42,620 42,575 (45) Expenditures Total expenditures - - - - Excess (deficiency) of revenues over expenditures 27,050 42,620 42,575 (45) Other Financing Uses Transfers out (27,050) (40,630) (40,626) 4 Total other financing uses (27,050) (40,630) (40,626) 4 Net change in fund balances -$ 1,990$ 1,949 (41)$ Fund Balance, Beginning 5,887 Fund Balance, Ending 7,836$ City of Galesburg, Illinois 2013A Business District Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 140 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 1,409,010$ 1,585,755$ 1,585,761$ 6$ Use of money and property 7,000 7,000 1,890 (5,110) Intergovernmental 10,000 - - - Total revenues 1,426,010 1,592,755 1,587,651 (5,104) Expenditures Current: General government 664,000 297,700 179,793 117,907 Capital outlay 159,000 834,580 628,311 206,269 Debt service: Interest and fiscal charges 14,645 14,645 14,642 3 Total expenditures 837,645 1,146,925 822,746 324,179 Excess of revenues over expenditures 588,365 445,830 764,905 319,075 Other Financing Uses Transfers out (637,215) (639,615) (639,606) 9 Total other financing uses (637,215) (639,615) (639,606) 9 Net change in fund balances (48,850)$ (193,785)$ 125,299 319,084$ Fund Balance (Deficit), Beginning (137,146) Fund Balance (Deficit), Ending (11,847)$ City of Galesburg, Illinois Utility Tax Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 141 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 76,350$ 76,350$ 74,943$ (1,407)$ Use of money and property 160 160 31 (129) Total revenues 76,510 76,510 74,974 (1,536) Expenditures Current: Miscellaneous 3,675 3,675 - 3,675 Total expenditures 3,675 3,675 - 3,675 Excess (deficiency) of revenues over expenditures 72,835 72,835 74,974 2,139 Other Financing Uses Transfers out (79,050) (79,050) - (79,050) Total other financing uses (79,050) (79,050) - (79,050) Net change in fund balances (6,215)$ (6,215)$ 74,974 81,189$ Fund Balance (Deficit), Beginning (440,582) Fund Balance (Deficit), Ending (365,608)$ City of Galesburg, Illinois TIF 3 Regency Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 142 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 13,945$ 3,730$ 2,344$ (1,386)$ Miscellaneous - - (1,200) (1,200) Total revenues 13,945 3,730 1,144 (2,586) Expenditures Current: Public works 309,200 309,200 108,985 200,215 Capital outlay 138,120 564,910 438,584 126,326 Total expenditures 447,320 874,110 547,569 326,541 Net change in fund balances (433,375)$ (870,380)$ (546,425) 323,955$ Fund Balance, Beginning 3,421,398 Fund Balance, Ending 2,874,973$ City of Galesburg, Illinois Building Repair and Maintenance Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 143 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 227,290$ 227,290$ 216,696$ (10,594)$ Use of money and property 920 920 313 (607) Miscellaneous - - 591 591 Total revenues 228,210 228,210 217,600 (10,610) Expenditures Current: General government 306,560 10,560 3,047 7,513 Capital outlay 80,000 43,815 34,309 9,506 Total expenditures 386,560 54,375 37,356 17,019 Excess (deficiency) of revenues over expenditures (158,350) 173,835 180,244 6,409 Other Financing Uses Transfers out - (510,965) (510,964) (1) Total other financing uses - (510,965) (510,964) (1) Net change in fund balances (158,350)$ (337,130)$ (330,720) 6,410$ Fund Balance, Beginning 330,720 Fund Balance, Ending -$ City of Galesburg, Illinois TIF Downtown Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 144 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 511,000$ 406,915$ 406,916$ 1$ Use of money and property 2,655 425 424 (1) Total revenues 513,655 407,340 407,340 - Expenditures Current: General government 7,650 7,650 350 7,300 Miscellaneous 800,880 689,120 173,890 515,230 Total expenditures 808,530 696,770 174,240 522,530 Excess (deficiency) of revenues over expenditures (294,875) (289,430) 233,100 522,530 Other Financing Uses Transfers out (100,000) (211,760) (211,759) 1 Total other financing uses (100,000) (211,760) (211,759) 1 Net change in fund balances (394,875)$ (501,190)$ 21,341 522,531$ Fund Balance, Beginning 564,314 Fund Balance, Ending 585,655$ City of Galesburg, Illinois TIF East Main Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 145 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental - 410,445 410,444 (1) Contributions - - 1,200 1,200 Use of money and property 7,145$ 7,145$ 4,275$ (2,870)$ Total revenues 7,145 417,590 415,919 (1,671) Expenditures Current: General government 279,150 132,480 117,620 14,860 Capital outlay 334,100 492,215 492,214 1 Total expenditures 613,250 624,695 609,834 14,861 Excess (deficiency) of revenues over expenditures (606,105) (207,105) (193,915) 13,190 Other Financing Sources Transfers in - 111,300 111,300 - Total other financing sources - 111,300 111,300 - Net change in fund balances (606,105)$ (95,805)$ (82,615) 13,190$ Fund Balance, Beginning 1,422,530 Fund Balance, Ending 1,339,915$ City of Galesburg, Illinois Computer Replacement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 146 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 20,100$ 9,230$ 7,486$ (1,744)$ Miscellaneous - 39,500 39,500 - Total revenues 20,100 48,730 46,986 (1,744) Expenditures Current: General government 138,140 111,220 98,156 13,064 Capital outlay 110,000 136,920 136,918 2 Total expenditures 248,140 248,140 235,074 13,066 Excess (deficiency) of revenues over expenditures (228,040) (199,410) (188,088) 11,322 Other Financing Sources Transfers in - 627,020 627,020 - Total other financing sources - 627,020 627,020 - Net change in fund balances (228,040)$ 427,610$ 438,932 11,322$ Fund Balance, Beginning 3,773,264 Fund Balance, Ending 4,212,196$ City of Galesburg, Illinois Vehicle Replacement Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 147 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 6,000$ 6,000$ 4,899$ (1,101)$ Total revenues 6,000 6,000 4,899 (1,101) Expenditures Current: Culture and recreation 2,000 2,000 - 2,000 Total expenditures 2,000 2,000 - 2,000 Net change in fund balances 4,000$ 4,000$ 4,899 899$ Fund Balance, Beginning 19,196 Fund Balance, Ending 24,095$ City of Galesburg, Illinois Players Fields Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 148 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Miscellaneous -$ 5,800$ 5,800$ -$ Total revenues - 5,800 5,800 - Expenditures Current: Miscellaneous - 195,000 195,000 - Total expenditures - 195,000 195,000 - Excess (deficiency) of revenues over expenditures - (189,200) (189,200) - Other Financing Sources Transfers in - 1,800,055 1,800,053 2 Total other financing sources - 1,800,055 1,800,053 2 Net change in fund balances -$ 1,610,855$ 1,610,853 (2)$ Fund Balance, Beginning 249,947 Fund Balance, Ending 1,860,800$ City of Galesburg, Illinois Capital Planning Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 149 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 352,240$ 352,240$ 352,603$ 363$ Use of money and property 1,870 1,870 1,257 (613) Miscellaneous 100,000 - - - Total revenues 454,110 354,110 353,860 (250) Expenditures Current: General government 127,650 127,650 7,569 120,081 Miscellaneous 592,520 478,425 379,301 99,124 Capital outlay 100,000 214,095 114,096 99,999 Total expenditures 820,170 820,170 500,966 319,204 Excess (deficiency) of revenues over expenditures (366,060) (466,060) (147,106) 318,954 Other Financing Sources Transfers in 100,000 543,945 543,942 (3) Total other financing sources 100,000 543,945 543,942 (3) Net change in fund balances (266,060)$ 77,885$ 396,836 318,951$ Fund Balance, Beginning 515,758 Fund Balance, Ending 912,594$ City of Galesburg, Illinois TIF IV Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 150 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 7,040$ 7,040$ 8,114$ 1,074$ Use of money and property 110 110 46 (64) Total revenues 7,150 7,150 8,160 1,010 Expenditures Current: Miscellaneous 26,355 26,355 1,000 25,355 Total expenditures 26,355 26,355 1,000 25,355 Net change in fund balances (19,205)$ (19,205)$ 7,160 26,365$ Fund Balance, Beginning 19,158 Fund Balance, Ending 26,318$ City of Galesburg, Illinois TIF V Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 151 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 1,200$ 1,200$ 3,005$ 1,805$ Total revenues 1,200 1,200 3,005 1,805 Expenditures Current: General government 1,000 1,000 956 44 Total expenditures 1,000 1,000 956 44 Excess of revenues over expenditures 200 200 2,049 1,849 Other Financing Uses Transfers out (800) (1,235) (1,233) 2 Total other financing uses (800) (1,235) (1,233) 2 Net change in fund balances (600)$ (1,035)$ 816 1,851$ Fund Balance, Beginning 86,073 Fund Balance, Ending 86,889$ City of Galesburg, Illinois Linwood Cemetery Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 152 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Use of money and property 7,000$ 18,300$ 19,255$ 955$ Miscellaneous 10,000 19,300 19,500 200 Total revenues 17,000 37,600 38,755 1,155 Expenditures Current: General government 5,000 5,800 5,798 2 Total expenditures 5,000 5,800 5,798 2 Excess of revenues over expenditures 12,000 31,800 32,957 1,157 Other Financing Uses Transfers out (4,000) (7,475) (7,474) 1 Total other financing uses (4,000) (7,475) (7,474) 1 Net change in fund balances 8,000$ 24,325$ 25,483 1,158$ Fund Balance, Beginning 522,848 Fund Balance, Ending 548,331$ City of Galesburg, Illinois East Linwood Cemetery Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 153 Galesburg Galesburg Public Public Library Statement of Library Foundation Total Adjustments Net Position Assets Cash and cash equivalents 4,553,824$ 692,226$ 5,246,050$ -$ 5,246,050$ Investments - 4,637,938 4,637,938 - 4,637,938 Receivables (net): Property tax receivable 1,635,355 - 1,635,355 - 1,635,355 Accounts 16,991 - 16,991 - 16,991 Loans - 3,000,000 3,000,000 (3,000,000) - Due from other governments 313 - 313 - 313 Prepaid items 32,315 - 32,315 - 32,315 Capital assets not being depreciated - - - 2,599,787 2,599,787 Capital assets being depreciated, net of accumulated depreciation - - - 832,488 832,488 Total assets 6,238,798 8,330,164 14,568,962 432,275 15,001,237 Deferred Outflows of Resources Deferred outflows related to pensions - - - 265,479 265,479 Deferred outflows related to OPEB - - - 3,971 3,971 Total deferred outflows of resources - - - 269,450 269,450 Liabilities Current liabilities: Accounts payable 177,464 - 177,464 - 177,464 Accrued liabilities 16,644 - 16,644 - 16,644 Payroll taxes payable 344 344 - 344 Due to other governments 3,000,514 - 3,000,514 (3,000,000) 514 Advances from primary government 512,454 - 512,454 - 512,454 Unearned revenues 1,546 - 1,546 - 1,546 Noncurrent liabilities: Due within one year - 3,000,000 3,000,000 2,039,917 5,039,917 Due in more than one year - - - 121,880 121,880 Total liabilities 3,708,622 3,000,344 6,708,966 (838,203) 5,870,763 Deferred Inflows of Resources Property taxes levied for future periods 1,635,355 - 1,635,355 - 1,635,355 Deferred inflows related to pensions - - - 545,280 545,280 Deferred inflows related to OPEB - - - 2,479 2,479 Total deferred inflows of resources 1,635,355 - 1,635,355 547,759 2,183,114 Fund Balance / Net Position Net investment in capital assets - - - 3,432,275 3,432,275 Nonspendable 32,315 - 32,315 (32,315) - Temporary restricted, Foundation - 1,728,337 1,728,337 - 1,728,337 Unassigned/Unrestricted 862,506 3,601,483 4,463,989 (2,407,791) 2,056,198 Total fund balance/net position 894,821$ 5,329,820$ 6,224,641$ 992,169$ 7,216,810$ City of Galesburg, Illinois Component Unit Statement of Net Position and Governmental Funds Combining Balance Sheet December 31, 2021 154 Galesburg Galesburg Public Public Library Statement Library Foundation Total Adjustments of Activities Revenues Property taxes 1,571,836$ -$ 1,571,836$ -$ 1,571,836$ Intergovernmental 176,834 - 176,834 - 176,834 Licenses and permits 1,513 - 1,513 - 1,513 Charges for services 1,958 - 1,958 - 1,958 Fines and fees 1,057 - 1,057 - 1,057 Use of money and property 3,382 492,859 496,241 - 496,241 Miscellaneous 136,899 470,786 607,685 - 607,685 Total revenues 1,893,479 963,645 2,857,124 - 2,857,124 Expenditures Current: General government 7,196 - 7,196 - 7,196 Culture and recreation 1,666,216 247,926 1,914,142 (146,995) 1,767,147 Debt service: Interest and fiscal charges 142,661 - 142,661 - 142,661 Capital outlay 1,941,363 - 1,941,363 (1,941,363) - Total expenditures 3,757,436 247,926 4,005,362 (2,088,358) 1,917,004 Excess (deficiency) of revenues over expenditures (1,863,957) 715,719 (1,148,238) 2,088,358 940,120 Other Financing Sources (Uses) Transfers in 550,000 - 550,000 (550,000) - Transfers out (550,000) - (550,000) 550,000 - Total other financing sources (uses)- - - - - Net change in fund balance/net positio (1,863,957) 715,719 (1,148,238) 2,088,358 940,120 Fund Balance/Net Position, Beginning 2,758,778 4,614,101 7,372,879 (1,096,189) 6,276,690 Fund Balance/Net Position, Ending 894,821$ 5,329,820$ 6,224,641$ 992,169$ 7,216,810$ City of Galesburg, Illinois Component Unit Statement of Activities and Governmental Fund Combining Statement of Revenues, Expenditures & Changes in Fund Balances/Net Position Year Ended December 31, 2021 155 The statistical section of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information presented in the financial statements, note disclosures and required supplementary information say about the City's overall financial health. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time.157 - 166 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue sources, the property tax (or sales tax).167 - 175 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.176 - 178 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.179 - 182 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.183 - 186 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual report for the relevant year. City of Galesburg, Illinois Statistical Section Contents 156 City of Galesburg, Illinois Statistical Section Comments Relative to Statistical Section The following statistical table recommended by the National Council on Governmental Accounting is not included for the reason stated below. The table showing legal debt margin is omitted because as a "Home Rule" unit established by the 1970 Illinois Constitution, the Sample City has no statutory debt limit. Nonhome Rule units in Illinois may issued bonds up to 8.625 percent of Assessed Valuation. Some Types of General Obligation Bonds may be issued up to 5 percent of Assessed Valuation. 157 2012 2013 2014 2015* Governmental activities: Net investment in capital assets 47,712,283$ 47,828,315$ 51,452,927$ 63,739,737$ Restricted 6,283,305 7,195,648 10,923,284 9,079,864 Unrestricted 32,842,341 32,082,018 27,953,253 (19,157,970) Total governmental activities net position 86,837,929$ 87,105,981$ 90,329,464$ 53,661,631$ Business-type activities: Net investment in capital assets 16,787,584$ 17,316,934$ 16,374,116$ 17,144,205$ Restricted 1,623,369 1,748,298 1,841,849 1,882,380 Unrestricted 7,246,666 7,254,377 8,007,034 8,627,065 Total business-type activities net position 25,657,619$ 26,319,609$ 26,222,999$ 27,653,650$ Primary government: Net investment in capital assets 64,499,867$ 65,145,249$ 67,827,043$ 80,883,942$ Restricted 7,906,674 8,943,946 12,765,133 10,962,244 Unrestricted 40,089,007 39,336,395 35,960,287 (10,530,905) Total primary government net position 112,495,548$ 113,425,590$ 116,552,463$ 81,315,281$ *The City implemented GASB Statement No. 68 in 2015. Prior years have not been restated. **The City implemented GASB Statement No. 75 in 2018. Prior years have not been restated. (Unaudited) City of Galesburg, Illinois Net Position By Component Last Ten Fiscal Years (Accrual Basis of Accounting) 158 2016 2017 2018**2019 2020 2021 63,792,831$ 65,500,187$ 66,126,310$ 70,078,243$ 70,812,000$ 71,628,870$ 10,624,226 11,440,849 9,382,619 8,796,867 8,464,898 8,556,462 (21,878,584) (26,361,249) (44,150,644) (50,444,236) (56,479,267) (57,474,570) 52,538,473$ 50,579,787$ 31,358,285$ 28,430,874$ 22,797,631$ 22,710,762$ 17,947,204$ 18,662,529$ 18,786,318$ 19,486,089$ 21,470,231$ 22,398,727$ 1,931,899 115,195 - - - - 8,585,924 10,233,257 9,563,406 9,478,377 8,400,225 8,943,695 28,465,027$ 29,010,981$ 28,349,724$ 28,964,466$ 29,870,456$ 31,342,422$ 81,740,035$ 84,162,716$ 84,912,628$ 89,564,332$ 92,282,231$ 94,027,597$ 12,556,125 11,556,044 9,382,619 8,796,867 8,464,898 8,556,462 (13,292,660) (16,127,992) (34,587,238) (40,965,859) (48,079,042) (48,530,875) 81,003,500$ 79,590,768$ 59,708,009$ 57,395,340$ 52,668,087$ 54,053,184$ 159 2012 2013 2014 Expenses Governmental activities: General government 8,794,360$ 9,109,242$ 10,426,751$ Economic development 638,641 925,144 1,486,124 Public safety 11,650,954 11,290,119 14,021,956 Public works 13,080,515 8,171,519 7,386,062 Culture and recreation 2,986,267 2,773,924 3,461,428 Interest on long-term debt 381,390 375,589 217,311 Total governmental activities expenses 37,532,127 32,645,537 36,999,632 Business-Type Activities Water 5,045,330 5,264,996 6,011,693 Refuse 1,980,440 2,120,941 2,180,298 Total business-type activities expenses 7,025,770 7,385,937 8,191,991 Total primary government expenses 44,557,897 40,031,474 45,191,623 Program Revenue Governmental activities: Charges for services: General government 2,104,879 2,596,649 3,397,076 Economic development 351,134 252,539 6,157 Public safety 1,387,175 1,217,057 1,149,013 Public works 542,092 446,805 11,347 Culture and recreation 689,518 670,181 657,088 Operating grants and contributions: General government 1,303,348 1,445,622 1,578,654 Economic development - 1,947 - Public safety 69,812 129,022 35,250 Public works 1,782,992 1,371,373 - Capital grants and contributions: General government - - 6,398,917 Economic development 363,085 - - Public works 9,413,653 1,877,191 1,100,260 Total governmental activities program revenue 18,007,688 10,008,386 14,333,762 Business-Type Activities Charges for services: Water 5,689,808 5,817,291 5,787,338 Refuse 2,081,239 2,194,321 2,260,260 Operating grants and contributions: Water - - 5,930 Refuse - 10,412 - Capital grants and contributions: Water 28,222 10,971 - Total business-type activities program revenues 7,799,269 8,032,995 8,053,528 Total primary government program revenues 25,806,957 18,041,381 22,387,290 Net (Expense) Revenue Governmental activities (19,524,439) (22,637,151) (22,665,870) Business-type activities 773,499 647,058 (138,463) Total primary government net expense (18,750,940) (21,990,093) (22,804,333) (Unaudited) City of Galesburg, Illinois Changes In Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 160 2015 2016 2017 2018 2019 2020 2021 9,380,664$ 8,248,902$ 9,306,471$ 10,992,849$ 10,651,157$ 11,550,509$ 12,231,634$ 1,905,456 2,268,500 2,008,950 3,389,260 1,967,235 2,089,501 1,737,407 16,456,993 18,224,515 22,072,437 21,413,721 24,782,293 26,287,931 24,473,488 5,811,833 6,973,467 6,710,310 6,658,379 6,272,794 6,348,081 6,522,596 3,801,421 3,641,663 4,224,280 4,566,350 3,970,192 4,596,048 3,849,239 199,491 430,255 425,771 395,346 362,007 337,940 322,655 37,555,858 39,787,302 44,748,219 47,415,905 48,005,678 51,210,010 49,137,019 5,067,996 5,419,955 5,920,927 6,076,418 6,381,984 6,431,060 5,348,804 2,244,566 2,305,095 2,391,562 2,530,820 2,579,990 2,688,662 2,794,057 7,312,562 7,725,050 8,312,489 8,607,238 8,961,974 9,119,722 8,142,861 44,868,420 47,512,352 53,060,708 56,023,143 56,967,652 60,329,732 57,279,880 2,700,392 2,398,183 2,575,497 2,801,320 2,935,246 2,906,591 3,436,233 6,525 5,990 5,310 3,798 39,030 287,559 19,853 1,114,419 1,189,755 1,246,902 1,193,653 1,204,958 1,132,756 1,362,274 60,114 43,562 75,899 66,469 84,673 73,722 475,806 895,304 909,345 879,680 887,535 865,211 642,741 868,407 1,134,256 1,362,415 2,982,046 3,647,909 4,851,809 6,468,193 5,683,340 - - - - - - - 353,202 62,545 504,469 138,824 67,221 82,279 102,839 - - - - - 19,507 2,584 6,209,660 380,165 1,757,054 849,360 58,973 289,396 125,379 - - - - - - - 8,185,232 1,903,931 420,860 108,545 2,058,593 1,202,371 710,749 20,659,104 8,255,891 10,447,717 9,697,413 12,165,714 13,105,115 12,787,464 5,830,076 6,042,198 6,154,575 6,599,837 6,678,978 7,203,364 6,776,659 2,312,419 2,358,692 2,468,372 2,528,662 2,599,519 2,686,297 2,812,322 - - - - 30,599 776 - - - - - - - - 596,610 - - - - - - 8,739,105 8,400,890 8,622,947 9,128,499 9,309,096 9,890,437 9,588,981 29,398,209 16,656,781 19,070,664 18,825,912 21,474,810 22,995,552 22,376,445 (16,896,754) (31,531,411) (34,300,502) (37,718,492) (35,839,964) (38,104,895) (36,349,555) 1,426,543 675,840 310,458 521,261 347,122 770,715 1,446,120 (15,470,211) (30,855,571) (33,990,044) (37,197,231) (35,492,842) (37,334,180) (34,903,435) (Continued) 161 2012 2013 2014 General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes 5,361,430$ 4,813,998$ 8,025,087$ State income tax 3,761,120 3,659,227 3,677,911 Sales taxes 8,912,100 8,916,296 8,941,898 Local utility taxes - - - Other taxes 3,251,678 3,577,028 4,513,348 Franchise fees 378,686 395,864 405,815 Investment earnings 188,908 115,785 152,056 Miscellaneous 591,887 1,598,354 173,238 Gain on disposal of capital assets - (171,349) - Total governmental activities 22,445,809 22,905,203 25,889,353 Business-type activities: Investment earnings 19,947 14,832 26,963 Miscellaneous 6,973 100 14,890 Total business-type activities 26,920 14,932 41,853 Total primary government 22,472,729 22,920,135 25,931,206 Changes in net position: Governmental activities 2,921,370 268,052 3,223,483 Business-type activities 800,419 661,990 (96,610) Total primary government 3,721,789$ 930,042$ 3,126,873$ (Unaudited) City of Galesburg, Illinois Changes In Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 162 2015 2016 2017 2018 2019 2020 2021 8,458,821$ 9,033,770$ 9,541,732$ 9,419,335$ 9,665,453$ 9,654,393$ 9,570,695$ 4,197,294 3,874,965 3,757,675 4,051,395 4,540,628 4,982,939 5,507,912 9,008,695 9,138,074 9,138,895 9,446,869 9,476,544 10,024,794 11,947,870 - 2,218,708 2,228,891 2,431,396 2,332,084 2,155,282 2,366,807 4,830,219 4,817,168 4,995,660 4,885,938 5,199,506 4,381,227 6,001,666 406,266 418,674 422,760 403,957 393,739 379,892 385,366 168,384 299,277 446,537 714,247 923,548 437,168 137,747 705,344 607,617 1,809,666 887,002 381,051 455,957 344,623 - - - - - - - 27,775,023 30,408,253 32,341,816 32,240,139 32,912,553 32,471,652 36,262,686 50,280 67,068 99,641 202,127 267,620 128,670 24,742 15,757 68,469 135,855 77,729 - 6,605 1,104 66,037 135,537 235,496 279,856 267,620 135,275 25,846 27,841,060 30,543,790 32,577,312 32,519,995 33,180,173 32,606,927 36,288,532 10,878,269 (1,123,158) (1,958,686) (5,478,353) (2,927,411) (5,633,243) (86,869) 1,492,580 811,377 545,954 801,117 614,742 905,990 1,471,966 12,370,849$ (311,781)$ (1,412,732)$ (4,677,236)$ (2,312,669)$ (4,727,253)$ 1,385,097$ (Concluded) 163 2012 2013 2014 2015 General Fund Nonspendable 325,607$ 357,233$ 387,939$ 352,361$ Restricted 363,099 359,419 355,923 29,823 Committed 238,198 221,917 370,899 192,766 Assigned 293,974 - - - Unassigned 6,828,509 7,287,240 6,566,847 6,587,692 Total general fund 8,049,387 8,225,809 7,681,608 7,162,642 All Other Governmental Funds Nonspendable 5,991,265 439,367 563,864 540,602 Restricted 6,416,851 5,997,683 8,114,466 7,645,407 Committed 6,366,129 9,546,003 7,716,130 7,970,913 Assigned 10,025,588 12,894,349 12,926,080 12,582,445 Unassigned (470,842) (360,557) (1,463,464) (1,254,144) Total all other government funds 28,328,991$ 28,516,845$ 27,857,076$ 27,485,223$ (Modified Accrual Basis of Accounting) (Unaudited) City of Galesburg, Illinois Fund Balances, Governmental Funds Last Ten Fiscal Years 164 2016 2017 2018 2019 2020 2021 314,201$ 363,528$ 293,356$ 266,254$ 380,886$ 1,057,855$ 29,889 12,795 12,795 12,795 12,792 12,795 232,553 209,009 199,801 199,650 222,856 260,206 - - - - - - 6,573,454 6,991,851 8,272,593 9,626,180 11,312,598 12,253,147 7,150,097 7,577,183 8,778,545 10,104,879 11,929,132 13,584,003 495,305 506,234 539,799 547,179 644,250 681,797 17,784,956 14,294,156 9,638,418 8,026,131 7,423,477 7,715,696 8,789,239 9,737,039 10,350,686 10,190,597 9,914,430 11,278,469 12,105,602 12,397,721 12,931,691 13,530,588 14,127,134 14,760,350 (1,199,351) (1,229,928) (1,598,320) (1,297,267) (2,079,200) (1,286,643) 37,975,751$ 35,705,222$ 31,862,274$ 30,997,228$ 30,030,091$ 33,149,669$ 165 2012 2013 2014 2015 Revenues Property taxes 5,361,430$ 4,813,998$ 8,025,087$ 8,458,821$ Other taxes 15,757,226 16,309,783 7,055,982 7,459,717 Intergovernmental 13,852,865 5,763,615 19,255,996 20,150,887 Licenses and permits 290,169 288,337 303,442 313,835 Charges for services 1,069,977 984,473 960,001 1,254,793 Fines and fees 484,350 415,470 392,776 334,872 Use of money and property 2,209,361 2,241,573 1,657,831 1,905,241 Other, primarily contributions 669,544 1,352,792 178,270 699,301 Total revenues 39,694,922 32,170,041 37,829,385 40,577,467 Expenditures General government 7,857,333 8,196,399 8,086,615 7,345,258 Economic development 391,323 706,217 856,177 1,102,282 Public safety 10,836,408 10,833,609 13,721,786 15,473,856 Public works 4,370,306 4,724,879 4,960,632 4,465,772 Culture and recreation 2,570,892 2,397,168 2,606,710 3,688,566 Other 7,572,492 2,273,115 2,173,970 2,835,652 Debt service: Principal 725,000 805,450 792,725 837,725 Interest and fiscal agent fees 276,936 209,318 259,171 227,930 Bond issuance costs - 62,096 - - Capital outlay 4,224,955 3,172,096 5,616,081 5,522,623 Total expenditures 38,825,645 33,380,347 39,073,867 41,499,664 Excess of revenues (under) expenditures 869,277 (1,210,306) (1,244,482) (922,197) Other Financing Sources (Uses) Issuance of long-term debt - 1,420,900 - - Proceeds from sale of capital assets - 123,629 24,268 31,378 Bond premium - 30,053 - - Transfers in 3,020,830 3,569,484 3,362,576 2,172,027 Transfers out (3,020,830) (3,569,484) (3,346,332) (2,172,027) Total other financing sources (uses)- 1,574,582 40,512 31,378 Net changes in fund balance 869,277$ 364,276$ (1,203,970)$ (890,819)$ Debt service as a percentage of noncapital expenditures 2.90%3.36%3.14%2.96% (Unaudited) City of Galesburg, Illinois Changes In Fund Balances, Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 166 2016 2017 2018 2019 2020 2021 9,033,770$ 9,541,732$ 9,419,335$ 9,665,453$ 9,654,393$ 9,570,695$ 9,955,260 10,235,859 10,566,961 10,660,820 10,351,443 12,264,603 14,044,207 17,247,795 16,044,387 18,493,997 20,080,853 23,090,773 311,327 329,799 338,115 363,599 299,889 387,349 966,862 1,057,294 1,220,539 1,108,239 1,341,266 1,270,663 344,590 419,615 447,782 407,934 329,410 409,238 2,005,080 2,133,287 2,422,328 2,598,159 1,801,196 1,910,734 440,584 723,846 266,926 268,736 422,934 242,792 37,101,680 41,689,227 40,726,373 43,566,937 44,281,384 49,146,847 6,945,661 6,714,688 7,329,243 7,779,109 8,612,597 8,879,242 794,240 717,245 2,391,827 1,029,517 1,577,452 447,032 15,118,405 16,384,103 16,407,314 17,150,554 17,887,688 18,088,721 5,416,330 4,738,099 4,749,904 4,235,111 4,480,544 4,854,619 3,342,100 3,625,399 3,751,977 3,419,021 2,992,771 3,691,776 1,427,368 2,567,311 3,177,276 3,104,994 2,983,306 4,249,018 1,210,000 1,225,000 1,275,000 1,280,000 710,000 735,000 477,632 470,249 433,749 393,092 361,859 345,182 - - - - - - 1,801,654 7,098,520 4,518,683 4,725,897 3,832,577 3,086,723 36,533,390 43,540,614 44,034,973 43,117,295 43,438,794 44,377,313 568,290 (1,851,387) (3,308,600) 449,642 842,590 4,769,534 9,600,000 - - - - - 2,243 7,944 43,239 11,646 14,526 4,915 307,450 - - - - - 2,209,391 2,638,340 3,710,458 4,931,368 4,935,333 4,576,963 (2,209,391) (2,638,340) (3,086,683) (4,931,368) (4,935,333) (4,576,963) 9,909,693 7,944 667,014 11,646 14,526 4,915 10,477,983$ (1,843,443)$ (2,641,586)$ 461,288$ 857,116$ 4,774,449$ 4.86%4.65%4.32%4.36%2.71%2.62% 167 Illinois Municipal Galesburg Fiscal General Retirement Public Total Year Fund Fire Fund Library Township Direct 2012 0.76530 1.04980 0.22095 0.42940 0.16240 2.628 2013 0.90160 0.89130 0.22020 0.43420 0.16120 2.609 2014 0.91076 0.94253 0.20067 0.43578 0.16144 2.651 2015 0.97015 0.96471 0.19869 0.44462 0.15985 2.738 2016 1.14933 0.95001 0.19566 0.43784 0.15741 2.890 2017 1.13822 1.04243 0.11957 0.44612 0.15277 2.899 2018 1.04070 1.11756 0.11835 0.44154 0.15121 2.869 2019 1.05148 1.12237 0.08200 0.42971 0.14715 2.833 2020 0.98996 1.14671 0.08010 0.43792 0.14375 2.798 2021 1.00803 1.08071 0.07832 0.43334 0.14601 2.746 Source: City records and Knox County Circuit Clerk Notes: Overlapping rates are those of local and county governments that apply to property owners within the City. City of Galesburg, Illinois Direct and Overlapping Property Tax Rates Last Ten Fiscal Years City Direct Rates 168 Galesburg Galesburg Carl Sandburg School Knox Sanitary College District #205 County District District #518 4.20480 1.16250 0.30050 0.61750 4.22000 1.16150 0.30640 0.62280 4.46713 1.31632 0.31251 0.62516 4.59146 1.31914 0.31426 0.61915 4.70178 1.32510 0.31862 0.60345 4.95759 1.33005 0.31028 0.66725 4.83436 1.36373 0.29861 0.65244 4.83436 1.31864 0.30602 0.64308 4.88974 1.31560 0.30571 0.65943 4.90212 1.28832 0.31007 0.64292 Overlapping Rates 169 City of Galesburg, Illinois Total Taxable Fiscal Residential Commercial Industrial Farm Railway Assessed Year Property Property Property Property Property Value 2012 175,992,076$ 109,296,161$ 8,489,270$ 741,400$ 20,838,542$ 315,357,449$ 2013 177,153,716 109,463,231 8,895,550 790,310 21,422,461 317,725,268 2014 172,972,143 111,399,641 9,191,100 877,630 21,367,871 316,577,637 2015 173,299,061 114,388,506 8,644,310 951,950 22,412,587 319,741,004 2016 175,275,760 116,346,621 8,612,190 852,010 23,605,742 324,692,323 2017 178,282,965 121,543,671 8,666,130 866,090 25,180,759 334,539,615 2018 178,538,545 123,177,891 8,668,670 884,350 26,744,789 338,014,245 2019 184,772,310 124,243,111 8,744,150 934,940 28,629,168 347,323,679 2020 186,888,191 127,571,276 8,846,430 987,470 31,257,896 355,551,263 2021 191,369,364 126,559,736 9,225,150 1,039,930 35,519,728 363,713,908 Source: City Assessor's Office Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 170 Total Total Gross Estimated Assessed Total Direct Actual Value Tax Rate Value 387,172,472$ 2.628 1,161,517,416$ 33.33 % 387,542,001 2.609 1,162,626,003 33.33 389,890,971 2.651 1,169,672,913 33.33 392,841,567 2.738 1,178,524,701 33.33 397,944,942 2.890 1,193,834,826 33.33 409,290,589 2.899 1,227,871,767 33.33 412,320,399 2.869 1,236,961,197 33.33 423,201,708 2.833 1,269,605,124 33.33 430,529,946 2.798 1,291,589,838 33.33 440,893,148 2.746 1,322,679,444 33.33 Actual Value Value as a Percentage 171 Percentage of Total City Taxable Taxable Assessed Assessed Taxpayer Value Rank Value Burlington Northern/Santa Fe 31,249,486$ 1 8.59 % Galesburg Hospital Corp 7,435,740 2 2.04 Seminary Manor, Seminary Estates & Hawthorne Inn & Achievement Unlimited 5,438,180 3 1.50 Wal-Mart 4,181,340 4 1.15 Menard Inc 3,516,510 5 0.97 Hy-Vee Food Stores, Inc 2,831,030 6 0.78 OSF St Francis Inc 2,594,800 7 0.71 Phoenix Galesburg Industrial 2,384,200 8 0.66 Lowes Home Centers 2,352,330 9 0.65 Bryce & Nicole Bulman dba Sun Garden Place & Galesburg Commercial LLC 2,177,500 10 0.60 Total 64,161,116$ 17.65 % Percentage of Total City Taxable Taxable Assessed Assessed Taxpayer Value Rank Value Burlington Northern/Santa Fe 20,838,542$ 1 6.56 % Galesburg Hospital Corp 7,081,990 2 2.23 Seminary Manor, Seminary Estates & Hawthorne Inn & Achievement Unlimited 4,257,240 3 1.34 Wal-Mart 4,096,420 4 1.29 OSF St Francis Inc 3,810,080 5 1.20 Menard Inc 3,066,470 6 0.97 Hy-Vee Food Stores, Inc 2,414,620 7 0.76 Lowes Home Centers 2,272,810 8 0.72 United Facilites 1,956,550 9 0.62 Galesburg Real Estate Inc 1,813,330 10 0.57 Total 51,608,052$ 16.26 % Source: City Assessor's Office City of Galesburg, Illinois Principal Property Taxpayers Current Year and Ten Years Ago (Unaudited) 2021 2011 172 Taxes Levied Collections in Tax for the Subsequent Percentage Year Year Tax Year Amount Years Amount of Levy 2012 2011 7,775,138$ 7,702,781$ 99.07 %(52,517)$ 7,755,298$ 99.74 % 2013 2012 7,775,690 7,764,530 99.86 8,949 7,755,581 99.74 2014 2013 7,881,960 7,847,373 99.56 (5,198) 7,852,571 99.63 2015 2014 8,243,467 8,269,247 100.31 26,107 8,243,140 100.00 2016 2015 8,873,322 8,870,039 99.96 511 8,869,528 99.96 2017 2016 9,187,595 9,188,337 100.01 4,910 9,183,427 99.95 2018 2017 9,187,734 9,136,055 99.44 (3,035) 9,139,090 99.47 2019 2018 9,327,586 9,321,849 99.94 20,592 9,301,257 99.72 2020 2019 9,438,819 9,424,130 99.84 3,305 9,420,825 99.81 2021 2020 9,458,051 9,431,536 99.72 (3,371) 9,434,908 99.76 Source: Knox County Circuit Clerk Note: Collections in Subsequent years include taxes received as well as abatements deducted for prior years Percentage of Levy Total Fiscal Year Collection City of Galesburg, Illinois Property Tax Levies And Collections Last Ten Fiscal Years (Unaudited) Total Current Year Levy Collection 173 2012 2013 2014 2015 General merchandise 1,191,398$ 1,156,517$ 1,134,271$ 1,180,549$ Food 798,494 819,644 845,967 852,400 Drinking and eating places 529,513 541,269 561,082 587,733 Apparel 36,156 40,522 51,465 52,410 Furniture, H.H. and radio 123,396 117,355 110,590 107,874 Lumber, bldg, hardware 501,165 524,624 529,917 564,372 Automotive and filling stations 1,099,880 1,080,285 1,123,279 1,117,935 Drugs and misc retail 648,106 660,278 656,535 652,330 Agriculture and all others 361,911 331,553 311,713 274,843 Manufacturers 20,422 39,813 28,263 20,238 Total 5,310,441$ 5,311,861$ 5,353,083$ 5,410,685$ City direct sales tax rate 1.00%1.00%1.00%1.00% Number of taxpayers 793 774 782 775 Source: Illinois Department of Revenue * Due to a new Illinois law regarding tax collection by remote retailers, the number of taxpayers increased significantly. City of Galesburg, Illinois Taxable Sales by Category Last Ten Fiscal Years (Unaudited) 174 2016 2017 2018 2019 2020 2021 1,143,338$ 1,119,726$ 1,155,822$ 1,176,875$ 1,136,015$ $1,223,851 839,231 844,909 887,874 922,281 1,225,462 990,136 584,949 588,154 601,763 623,848 557,267 670,960 48,951 41,999 41,051 41,812 29,809 47,729 118,568 106,393 95,384 91,477 89,894 107,324 561,379 551,685 553,147 588,515 689,217 719,818 1,141,555 1,244,062 1,274,273 1,239,553 1,106,763 1,409,305 700,735 695,764 725,894 780,583 880,485 1,201,690 291,533 365,289 368,029 296,518 340,245 529,606 55,836 (4,388) 28,236 28,407 57,732 21,280 5,486,074$ 5,553,593$ 5,731,473$ 5,789,868$ 6,112,887$ 6,921,699$ 1.00%1.00%1.00%1.00%1.00%1.00% 754 765 723 730 702 2545* 175 City Fiscal Direct Knox State Year Rate County of Illinois Total 2012 1.00000 1.25000 6.25000 8.50000 2013 1.00000 1.25000 6.25000 8.50000 2014 1.00000 1.25000 6.25000 8.50000 2015 1.00000 1.50000 6.25000 8.75000 2016 1.00000 1.50000 6.25000 8.75000 2017 1.00000 1.50000 6.25000 8.75000 2018 1.00000 1.50000 6.25000 8.75000 2019 1.00000 1.50000 6.25000 8.75000 2020 1.00000 1.50000 6.25000 8.75000 2021 1.00000 1.50000 6.25000 8.75000 Source: City records and Illinois Department of Revenue City of Galesburg, Illinois Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years 176 General Less Amount Net Debt Fiscal Obligation Available in General Notes Per Year Bonds Debt Service Bonded Debt Payable Capita 2012 7,046,395$ -$ 7,046,395$ 25,000$ 222.76$ 2013 7,635,260 - 7,635,260 15,450 241.69 2014 6,817,947 - 6,817,947 7,725 215.56 2015 5,959,563 - 5,959,563 - 188.02 2016 14,608,908 - 14,608,908 - 460.91 2017 13,339,503 - 13,339,503 - 433.54 2018 12,026,203 - 12,026,203 - 390.85 2019 10,715,222 - 10,715,222 - 345.81 2020 9,981,369 - 9,981,369 - 332.14 2021 9,223,874 - 9,223,874 - 306.93 *Personal income not available for 2021. Note: Details regarding the City's outstanding debt may be found in the notes to the basic financial statements. As a Home Rule entity, under the State of Illinois Constitution, the City has no statutory debt limit. City of Galesburg, Illinois Ratios of Net General Bonded Debt Outstanding by Type Last Ten Fiscal Years (Unaudited) Governmental Activities 177 Percentage of General Total Actual Percentage of Obligation Revenue Notes Primary Property Personal Per Bonds Bonds Payable Government Value Income Capita 9,130,000$ 9,515,000$ 784,487$ 26,500,882$ 2.28 1.418 834.80$ 8,820,000 9,279,151 745,303 26,495,164 2.28 1.362 837.00 8,500,000 9,103,893 703,897 25,133,462 2.15 1.317 793.73 8,487,752 8,918,557 662,492 24,028,364 2.04 1.262 758.09 8,080,920 8,728,140 621,086 32,039,054 2.68 1.689 1,010.82 16,473,747 - 579,680 30,392,930 2.48 1.609 987.78 15,600,530 - 538,274 28,165,007 2.28 1.445 915.37 14,705,090 - 496,869 25,917,181 2.04 1.319 836.42 13,788,161 - 455,463 24,224,993 1.88 1.099 806.10 12,855,524 - 414,058 22,493,456 1.70 *748.48 Business-Type Activities 178 Estimated Share of Debt Overlapping Governmental Unit Outstanding Debt (2) Knox County 4,277,452$ 41.50 %1,775,143$ Community Unit School District #205 84,520,000 78.46 66,314,392 Carl Sandburg College, Dist No 518 7,861,044 18.26 1,435,427 Subtotal, overlapping debt 69,524,961 City Direct Debt 9,223,874 100.00 9,223,874 Total direct and overlapping debt 78,748,835$ Sources: Knox County County Clerk, Knox County Treasurer, Community School District #205 Annual Report, Carl Sandburg College Annual Report and City Records (1) The percentage of overlap is based on assessed property values. (2) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. to City(1) Estimated Applicable City of Galesburg, Illinois Direct and Overlapping Governmental Activities Debt For the Year Ended December 31, 2021 (Unaudited) Percentage 179 Personal Fiscal Income (1)Per Capita Median School Year Population (2)(000's)Income (1)Age (2)Enrollment (3) 2012 31,745 1,868,826$ 35,731$ 39.7 4,603 8.4 % 2013 31,655 1,945,770 37,325 39.8 4,662 8.9 2014 31,665 1,908,628 36,743 39.0 4,575 7.0 2015 31,696 1,903,785 37,055 40.0 4,558 6.2 2016 31,696 1,897,215 37,251 40.4 4,475 6.4 2017 30,769 1,889,504 37,341 40.8 4,365 5.4 2018 30,769 1,949,430 38,982 41.1 4,294 5.7 2019 30,986 1,965,246 39,567 40.3 4,203 5.0 2020 30,052 2,203,512 44,921 41.2 3,931 8.6 2021 30,052 **41.2 3,895 6.6 Sources: (1)Information received from U.S. Department of Commerce, Bureau of Economic Analysis. (2)Information received from the US Census Bureau (3)Information received from Galesburg Community School District #205 (4)Information received from Illinois Department of Employment Security Note: * Information not available Unemployment Rate (4) City of Galesburg, Illinois Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) 180 Employer Employees Rank Burlington Northern 1,031 1 5.04 % School District #205 626 2 3.06 OSF Healthcare 593 3 2.90 Dick Blick Company 558 4 2.73 Knox College 500 5 2.44 Galesburg Cottage Hospital 346 6 1.69 Bridgeway 324 7 1.58 Henry C Hill Correctional Facility 288 8 1.41 Gates Corporation 221 9 1.08 City of Galesburg 219 10 1.07 4,706 23.00 % Employer Employees Rank Burlington Northern 1,115 1 4.76 % OSF Healthcare 973 2 4.15 School District #205 594 3 2.53 HyVee 574 4 2.45 Dick Blick Company 500 5 2.13 Bridgeway 450 6 1.92 Carl Sandburg College 430 7 1.83 Knox County 420 8 1.79 Knox College 407 9 1.74 Walmart 370 10 1.58 5,833 24.88 % Sources: The Knox County Area Partnership's website http://www.knoxpartnership.com/top-employers/ Note: The 2011 total county employment was 23,443 The 2021 total county employment was 20,453 City of Galesburg, Illinois Principal Employers Current Year and Ten Years Ago (Unaudited) Percentage County Employment Percentage County Employment 2011 2021 of Total of Total 181 2021 2020 2019 2018 Functions/Program General Government: Legislative 8.00 8.00 8.00 8.00 City manager 4.20 4.20 4.20 4.40 City clerk 4.00 4.00 4.00 4.00 City treasurer - - - - Finance**6.80 6.80 7.00 7.00 Information services 2.70 2.70 2.00 2.00 Legal 0.50 0.50 0.50 0.90 Community development 0.70 1.05 8.70 9.25 Transit*18.00 18.50 - - Economic Development***0.80 1.15 0.95 0.95 Public Safety: Police officers 49.00 47.00 49.10 50.00 Firefighters and officers 42.00 43.00 42.00 42.00 Civilians 27.00 25.00 24.90 24.00 Inspections 6.60 6.90 6.70 4.70 Neighborhood Enhancement Div Public Works: Administration - - - - Buildings and grounds 1.00 1.00 1.00 1.00 Engineering 6.50 6.60 6.40 6.30 Street and traffic maintenance 10.75 10.75 10.60 10.60 Stormwater utility 4.30 4.30 4.45 5.00 Fleet services 4.00 4.00 4.00 4.00 Airport 0.70 0.70 0.50 - Cemetery 0.50 0.50 0.50 1.00 Parks and Recreation: Park and recreation administration 0.95 0.95 1.00 1.00 Park 9.85 10.85 11.00 11.00 Recreation 2.00 2.00 2.00 2.00 Forestry 2.00 2.00 2.00 2.00 Golf Course(s)2.00 2.00 2.00 2.00 Water 21.90 21.80 23.25 23.25 Refuse 0.25 0.25 0.25 Total 237 237 227 226 Source: City Departments Note: * In 2020, Galesburg Transit was absorbed by the City & Transit separated from Community Development ** 1.5 Position in Finance were paid by Water beginning 1/1/15 *** 3 Economic Development positions were grant funded 2010-2013 City of Galesburg, Illinois Full-Time Equivalent City Government Employees By Functions/Programs Last Ten Fiscal Years (Unaudited) Full-Time Equivalent Employees 182 2017 2016 2015 2014 2013 2012 8.00 8.00 8.00 8.00 8.00 8.00 4.80 4.80 5.00 5.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 - 2.00 2.00 2.00 2.00 2.00 8.50 8.50 8.50 10.00 10.00 10.00 2.00 2.00 2.00 2.00 3.00 3.00 0.90 1.00 1.00 1.00 1.00 1.00 9.95 10.15 11.25 11.25 11.25 11.25 - - - - - - 0.95 0.65 - - 4.00 4.00 50.00 50.00 50.00 52.00 52.00 52.00 43.00 42.00 43.00 44.00 46.00 46.00 25.00 27.00 27.00 27.00 27.00 27.00 4.70 3.40 3.75 3.75 3.75 3.75 - - - - 3.00 5.00 - - - 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 6.30 8.00 8.00 6.00 6.00 6.00 11.95 16.00 16.00 15.00 17.00 17.00 4.20 4.15 - - - - 4.00 4.00 4.00 4.00 4.00 5.00 - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 - - - 11.00 10.00 10.00 9.00 10.00 10.00 2.00 3.00 3.00 5.00 6.00 6.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 22.80 21.50 21.50 20.00 19.00 19.00 231 238 236 236 249 252 183 2012 2013 2014 2015 Function/Program General government: Handivan riders 22,214 18,896 18,281 19,761 Transit riders 154,802 159,166 151,889 151,903 Police: Physical arrests 3,263 3,097 2,539 2,491 Traffic violations 2,541 2,516 1,776 2,191 Service calls 43,465 41,936 40,467 43,537 Property loss 802,082 1,167,064 544,159 812,086 Fire: Total actual fires 108 87 106 122 Total of all fire department calls 3,595 3,760 4,005 4,286 Building safety: Total building permits 382 381 391 429 Total value all permits 16,134,138 15,602,476 14,272,108 19,619,073 Parks and Recreation: Golf rounds played 30,000 22,000 22,000 22,973 Number of trees trimmed 391 511 305 458 Number of daily camp sites rented 3,425 2,620 2,620 2,780 Recreation classes offered**142 125 165 84 Aquatic general admissions*14,322 12,558 11,847 12,488 Sports field participation (teams)64 69 75 112 Recreation facility rentals 876 915 975 848 Public Works Total airport acres mowed 265 265 265 265 Total lineal feet of runways maintained 9,394 9,394 9,394 9,394 Number of runway & taxiway lights & signs 511 511 511 511 Total cemetery acres maintained 68 68 68 68 Number of cemetery plots sold 35 53 41 56 Number of grave openings 82 84 84 84 Refuse: Refuse collected (ton)9,041 9,192 9,071 9,144 Yard waste collected (ton)2,269 2,353 2,496 3,040 Recycle collected (ton)1,386 1,470 1,547 1,701 Water: Number of water services 12,720 12,718 12,636 12,557 Source: Various city departments Note: *General admissions does not include season pass holders **New software more accurately tracked offered classes, including changing the method used in counting group classes such During 2020, some services were severely impacted due to the COVID-19 coronavirus pandemic. City of Galesburg, Illinois Operating Indicators By Function/Program Last Ten Fiscal Years (Unaudited) 184 2016 2017 2018 2019 2020 2021 19,065 18,441 20,036 18,388 11,790 9,774 155,857 139,400 129,795 154,367 87,192 64,189 2,208 2,140 2,580 3,045 2,072 2,570 2,209 2,539 3,616 2,965 1,658 1,393 43,193 39,928 44,037 45,364 44,120 48,879 923,509 420,652 844,413 100,271 767,396 203,907 106 107 86 63 72 93 4,289 4,408 4,845 4,849 4,376 5,110 429 348 305 298 247 231 9,305,584 16,468,496 21,854,303 6,766,680 3,535,821 9,352,432 24,220 23,164 21,151 20,624 23,648 27,826 652 501 231 375 304 284 2,105 3,355 2,880 3,668 3,211 4,340 152 437 302 273 237 300 12,459 16,148 15,311 16,264 3,599 11,256 215 271 242 218 76 53 811 926 1,663 1,964 999 923 265 265 265 265 265 265 9,394 9,394 9,394 9,394 9,394 9,394 511 511 511 511 511 511 68 68 68 68 68 68 60 44 37 49 63 67 73 77 64 78 74 92 9,352 9,004 9,081 9,741 9,311 9,925 2,735 2,034 2,076 2,590 2,473 2,185 1,537 1,431 1,475 1,447 1,431 1,509 12,472 12,659 12,547 12,536 12,608 12,545 as swim lessons 185 2012 2013 2014 2015 Function/Program Police: Stations 1 1 1 1 Fire: Stations 3 3 3 3 Parks and recreation: Acreage 748 748 748 748 Parks 26 26 26 26 Golf course 1 1 1 1 Baseball/softball diamonds 13 13 13 13 Soccer/football fields 2 2 2 2 Basketball courts 12 12 12 12 Outdoor tennis courts 10 10 10 10 Parks with playground equipment 19 19 19 19 Public works: Miles of streets 176 176 176 176 Miles of sidewalks 122 122 122 122 Number of traffic signal heads maintained 469 476 476 476 Total number of street lights owned and maintained 510 510 559 581 Total number of street lights rented 3,414 3,415 3,415 3,415 Number of vehicles and equipment maintained 254 234 234 246 Total miles of water mains 202 202 202 202 Number of fire hydrants 1,410 1,410 1,410 1,410 Number of water valves 1,910 1,910 1,910 1,910 Source: Various city departments City of Galesburg, Illinois Capital Asset Statistics By Function/Program Last Ten Fiscal Years (Unaudited) 186 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 3 3 3 3 3 3 748 748 748 748 748 748 26 26 26 26 27 27 1 1 1 1 1 1 13 13 13 13 13 13 2 2 2 2 2 2 12 12 12 12 12 12 10 10 10 10 10 10 19 19 19 16 16 16 176 176 176 176 177 177 122 122 122 122 123 123 476 476 503 503 503 503 581 858 879 879 879 879 3,415 3,415 3,406 3,409 3,410 3,410 240 250 252 252 252 252 203 203 203 203 203 203 1,420 1,420 1,420 1,420 1,449 1,449 1,930 1,930 1,930 1,930 2,239 2,239 Reporting and insights from 2021 audit: City of Galesburg, Illinois December 31, 2021 © 2021 Baker Tilly US, LLP Page | 2 Executive summary To the Mayor and City Council City of Galesburg 55 West Tompkins Street Galesburg, Illinois 61401 We have completed our audit of the financial statements of the City of Galesburg (the City) for the year ended December 31, 2021, and have issued our report thereon dated June 24, 2022. This letter presents communications required by our professional standards. Your audit should provide you with confidence in your financial statements. The audit was performed based on information obtained from meetings with management, data from your systems, knowledge of your City’s operating environment and our risk assessment procedures. We strive to provide you clear, concise communication throughout the audit process and of the final results of our audit. Additionally, we have included information on key risk areas the City of Galesburg should be aware of in your strategic planning. We are available to discuss these risks as they relate to your organization’s financial stability and future planning. If you have questions at any point, please connect with us: - Jason Coyle, CPA, Partner: jason.coyle@bakertilly.com or +1 (630) 645 6205 - Michael E. Malatt, CPA, Senior Manager: michael.malatt@bakertilly.com or +1 (630) 645 6226 Sincerely, Baker Tilly US, LLP Jason Coyle, CPA, Partner © 2021 Baker Tilly US, LLP Page | 3 Responsibilities Our responsibilities As your independent auditor, our responsibilities include: - Planning and performing the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high level of assurance. - Assessing the risks of material misstatement of the financial statements, whether due to fraud or error. Included in that assessment is a consideration of the City’s internal control over financial reporting. - Performing appropriate procedures based upon our risk assessment. - Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management. - Forming and expressing an opinion based on our audit about whether the financial statements prepared by management, with the oversight of those charged with governance: - Are free from material misstatement - Present fairly, in all material respects and in accordance with accounting principles generally accepted in the United States of America - Performing tests related to compliance with certain provisions of laws, regulations, contracts and grants, as required by Government Auditing Standards. - Considering internal control over compliance with requirements that could have a direct and material effect on major federal programs to design tests of both controls and compliance with identified requirements. - Forming and expressing an opinion based on our audit in accordance with OMB’s Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) about the entity’s compliance with requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs. - Our audit does not relieve management or those charged with governance of their responsibilities. We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of those charged with governance, including: - Internal control matters - Qualitative aspects of the City’s accounting practice including policies, accounting estimates and financial statement disclosures - Significant unusual transactions - Significant difficulties encountered - Disagreements with management - Circumstances that affect the form and content of the auditors’ report - Audit consultations outside the engagement team - Corrected and uncorrected misstatements - Other audit findings or issues © 2021 Baker Tilly US, LLP Page | 4 Audit status Significant changes to the audit plan There were no significant changes made to either our planned audit strategy or to the significant risks and other areas of emphasis identified during the performance of our risk assessment procedures. © 2021 Baker Tilly US, LLP Page | 5 Audit approach and results Planned scope and timing Audit focus Based on our understanding of the City and environment in which you operate, we focused our audit on the following key areas: - Key transaction cycles - Areas with significant estimates Our areas of audit focus were informed by, among other things, our assessment of materiality. Materiality in the context of our audit was determined based on specific qualitative and quantitative factors combined with our expectations about the City’s current year results. Key areas of focus and significant findings Significant risks of material misstatement A significant risk is an identified and assessed risk of material misstatement that, in the auditor’s professional judgment, requires special audit consideration. Within our audit, we focused on the following areas below. Significant risk areas Testing approach Conclusion Management override of controls Incorporate unpredictability into audit procedures, emphasize professional skepticism and utilize audit team with industry expertise Procedures identified provided sufficient evidence for our audit opinion Improper revenue recognition due to fraud Confirmation or validation of certain revenues supplemented with detailed predictive analytics based on non-financial data and substantive testing of related receivables Procedures identified provided sufficient evidence for our audit opinion © 2021 Baker Tilly US, LLP Page | 6 Other areas of emphasis We also focused on other areas that did not meet the definition of a significant risk, but were determined to require specific awareness and a unique audit response. Other areas of emphasis Cash and investments Revenues and receivables General disbursements Payroll Pension and OPEB liabilities Long-term debt Self-insurance Capital assets Fund balance / net position calculations Financial reporting and required disclosures Internal control matters We considered the City’s internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing an opinion on the financial statements. We are not expressing an opinion on the effectiveness of the City’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. © 2021 Baker Tilly US, LLP Page | 7 Required communications Qualitative aspect of accounting practices - Accounting policies: Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we have advised management about the appropriateness of accounting policies and their application. The significant accounting policies used by City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing accounting policies was not changed during 2021. We noted no transactions entered into by the City during the year for which accounting policies are controversial or for which there is a lack of authoritative guidance or consensus or diversity in practice. - Accounting estimates: Accounting estimates, including fair value estimates, are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements, the degree of subjectivity involved in their development and because of the possibility that future events affecting them may differ significantly from those expected. The following estimates are of most significance to the financial statements: Estimate Management’s process to determine Baker Tilly’s conclusions regarding reasonableness Net pension liability/asset and related deferrals Evaluation of information provided by the Illinois Municipal Retirement Fund and other actuarial studies Reasonable in relation to the financial statements as a whole Self-insurance claims Historical claims analysis and report provided by a 3rd party administrator Reasonable in relation to the financial statements as a whole Net OPEB liability and related deferrals Key assumptions set by management with the assistance of a third party actuary Reasonable in relation to the financial statements as a whole Depreciation Evaluate estimated useful life of the asset and original acquisition value Reasonable in relation to the financial statements as a whole There have been no significant changes made by management to either the processes used to develop the particularly sensitive accounting estimates, or to the significant assumptions used to develop the estimates, noted above. - Financial statement disclosures: The disclosures in the financial statements are neutral, consistent and clear. Significant unusual transactions There have been no significant transactions that are outside the normal course of business for the City or that otherwise appear to be unusual due to their timing, size or nature. © 2021 Baker Tilly US, LLP Page | 8 Significant difficulties encountered during the audit We encountered no significant difficulties in dealing with management and completing our audit. Disagreements with management Professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Audit report There have been no departures from the auditors’ standard report. Audit consultations outside the engagement team We encountered no difficult or contentious matters for which we consulted outside of the engagement team. Uncorrected misstatements and corrected misstatements Professional standards require us to accumulate misstatements identified during the audit, other than those that are clearly trivial, and to communicate accumulated misstatements to management. The schedule within the Appendix summarizes the uncorrected misstatements, other than those that are clearly trivial, that we presented to management and the material corrected misstatements that, in our judgment, may not have been detected except through our auditing procedures. In our judgment, neither the uncorrected misstatements nor the misstatements that management corrected, either individually or in the aggregate, indicate matters that could have had a significant effect on the City’s financial reporting process. Management has determined that the effects of the uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the basic financial statements under audit. © 2021 Baker Tilly US, LLP Page | 9 Other audit findings or issues We encountered no other audit findings or issues that require communication at this time. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Management’s consultations with other accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters. Written communications between management and Baker Tilly The Appendix includes copies of other material written communications, including a copy of the management representation letter. Compliance with laws and regulations We did not identify any non-compliance with laws and regulations during our audit. We will issue a separate document which contains the results of our audit procedures to comply with the Uniform Guidance. Fraud We did not identify any known or suspected fraud during our audit. Going concern Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating to our evaluation of the City’s ability to continue as a going concern for a reasonable period of time but no less than 12 months from the date the financial statements are issued or available to be issued, including the effects on the financial statements and the adequacy of the related disclosures, and the effects on the auditor's report. No such matters or conditions have come to our attention during our engagement. © 2021 Baker Tilly US, LLP Page | 10 Group audits The City’s financial statements include information that was audited by other auditors as follows: - The Town of the City of Galesburg, a blended component unit of the City - The Galesburg Public Library Foundation, a component of the Galesburg Public Library, a discretely presented component unit of the City In addition, if we had any concerns about the quality of work of the other auditors, if there were any limitations related to the group audit or if there was any fraud or suspected from involving group management, component management, employees who have significant roles in group-wide controls or others in which material misstatement of the group financial statements has or may have resulted from fraud we would be required to report those to you. We have not identified any circumstances that are required to be reported. Independence We are not aware of any relationships between Baker Tilly and the City that, in our professional judgment, may reasonably be thought to bear on our independence. Related parties We did not have any significant findings or issues arise during the audit in connection with the City’s related parties. Other matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information which accompanies the financial statements but is not RSI. With respect to the supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the other information, which accompanies the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. © 2021 Baker Tilly US, LLP Page | 11 Nonattest services The following nonattest services were provided by Baker Tilly: - Financial statement preparation - Preparation of Part II of the Data Collection Form - State of Illinois Annual Financial Report None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. © 2021 Baker Tilly US, LLP Page | 12 Audit committee resources Visit our resource page for regulatory updates, trending challenges and opportunities in your industry and other timely updates. Visit the resource page at https://www.bakertilly.com/insights/audit-committee-resource-page. © 2021 Baker Tilly US, LLP Page | 13 Management representation letter Total Total Change in Beginning Total Assets/Total Liabilities/Net Position/Total Expenses/Net Position/Net Position/ Deferred Outflows Deferred Inflows Fund Balances Revenues Expenditures Fund Balances Fund Balances Governmental Activities - 412,685 (412,685) - (245,194) (245,194) (167,491) Business-Type Activities - 78,346 (78,346) - (44,804) (44,804) (33,542) Discretely Presented Component Units - 42,780 (42,780) - (23,474) (23,474) (19,306) Water Fund - 78,346 (78,346) - (44,804) (44,804) (33,542) Financial Statements Effect - Debit (Credit) to Financial Statement Total December 31, 2021 City of Galesburg SUMMARY OF UNCORRECTED FINANCIAL STATEMENT MISSTATEMENTS © 2021 Baker Tilly US, LLP Page | 23 Accounting changes relevant to the City of Galesburg Future accounting standards update GASB Statement Number Description Potentially Impacts you Effective Date 87 Leases 12/31/22* 91 Conduit Debt 12/31/22* 92 Omnibus 2020 12/31/22* 93 Replacement of Interfund Bank Offered Rates 12/31/22* 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements 12/31/23 96 Subscription-Based Information Technology Arrangements 12/31/23 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans 12/31/22 99 Omnibus 2022 12/31/23 100 Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62 12/31/24 101 Compensated Absences 12/31/24 *The statements listed above through Statement No. 93 had their required effective dates postponed by one year with the issuance of Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance, with the exception of Statement No. 87 which was postponed by one and a half years. The effective date reflected above is the required revised implementation date. Further information on upcoming GASB pronouncements. © 2021 Baker Tilly US, LLP Page | 24 Ready or not – the new lease standard is here! GASB’s new single model for lease accounting is effective for next year’s audit (fiscal years ending June 30, 2022 and later). This standard requires governments to identify and evaluate contracts that convey control of the right to use another entity’s nonfinancial asset for a period of time in an exchange or exchange-like transaction. Contracts meeting the criteria for control, term and other items within the standard will result in recognizing a right to use asset and lease liability or a receivable and deferred inflow of resources. The standard specifies that leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation. The implementation process can be broken down into a four-step methodology: Now is the time to evaluate where your government is in this process and the timeline to complete implementation. The third step for lease evaluation, data extraction and review is typically the most time- consuming step; organizations should begin this process well before year end to ensure adequate lead time. A key decision that will need to be made is whether a lease administration software package is necessary. Depending on the volume and complexity of your lease activity, spreadsheets may not be sufficient to track and calculate all the required information. We are available to discuss this further and help you develop an action plan. Baker Tilly also has complimentary resources available online including: GASB 87 lease identification questionnaire GASB 87 lease assistance tool Variety of GASB 87 podcasts and articles Access tools and learn more about GASB 87. Preparing for the new conduit debt reporting Conduit debt includes arrangements where there are three separate parties involved including a third party that is obligated for payment, a debt holder or lender and an issuing party which is often a government. This standard provides additional criteria for identifying and classifying conduit debt with the intent of providing consistency in how the debt is recorded and reported in governmental financial statements. The City should identify any existing debt arrangements involving third-party obligors and evaluate how those arrangements will be reported under the new standard in order to determine the potential impact of this standard on future financial reporting. © 2021 Baker Tilly US, LLP Page | 25 Determining if GASB 94 applies for your organization GASB 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements provides guidance related to public-private and public-public partnerships (PPP) and availability payment arrangements (APA). A PPP is an arrangement in which an entity contracts with an operator to provide public services by conveying control of the right to operate or use infrastructure or other capital asset. A common example of PPP is a service concession arrangement. An APA is an arrangement in which an entity compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an asset. The City should start to identify any contracts that could meet either definition to ensure they are reviewed for applicability and accounted for correctly when the standard is effective. Initial steps include reviewing contracts that didn’t meet the definition of a lease under GASB 87 and identifying any other agreements where the organization contracts with or partners with another entity to provide services. Future accounting for subscription-based IT arrangements Subscription-based IT arrangements include contracts that convey control of the right to use another party’s IT software. It would not include any licensing arrangements that provide a perpetual license, which would still be accounted for as an intangible asset. Subscription-based IT arrangements are becoming more and more popular with IT vendors. This standard mirrors the new lease standard. The City will be able to utilize the systems put into place to implement the lease standard to properly account for these contracts. Common examples of these contracts in the utility industry include: - Leasing space in the cloud - GIS systems - SCADA systems - Some work order or inventory systems as well as some general ledger or billing systems The City should work with its IT department and department managers to determine a population listing of contracts that would fall under this standard to determine the potential future impact to financial reporting. © 2021 Baker Tilly US, LLP Page | 26 Two-way audit communications As part of our audit of your financial statements, we are providing communications to you throughout the audit process. Auditing requirements provide for two-way communication and are important in assisting the auditor and you with more information relevant to the audit. As this past audit is concluded, we use what we have learned to begin the planning process for next year’s audit. It is important that you understand the following points about the scope and timing of our next audit: a. We address the significant risks of material misstatement, whether due to fraud or error, through our detailed audit procedures. b. We will obtain an understanding of the five components of internal control sufficient to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing and extent of further audit procedures. We will obtain a sufficient understanding by performing risk assessment procedures to evaluate the design of controls relevant to an audit of financial statements and to determine whether they have been implemented. We will use such knowledge to: Identify types of potential misstatements. Consider factors that affect the risks of material misstatement. Design tests of controls, when applicable, and substantive procedures. c. We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations and provisions of contracts or grant programs. For audits performed in accordance with Government Auditing Standards, our report will include a paragraph that states that the purpose of the report is solely to describe the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance and that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance. The paragraph will also state that the report is not suitable for any other purpose. d. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements in conformity with generally accepted accounting principles while other matters are not important. In performing the audit, we are concerned with matters that, either individually or in the aggregate, could be material to the financial statements. Our responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. Our audit will be performed in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards and OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations, and provisions of contracts or grant programs. For audits done in accordance with Government Auditing Standards and the Uniform Guidance, our report will include a paragraph that states that the purpose of the report is solely to describe (a) the scope of testing of internal control over financial reporting and compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance, (b) the scope of testing internal control over compliance for major programs and major program compliance and the result of that © 2021 Baker Tilly US, LLP Page | 27 testing and to provide an opinion on compliance but not to provide an opinion on the effectiveness of internal control over compliance and, (c) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering internal control over financial reporting and compliance and the Uniform Guidance, in considering internal control over compliance and major program compliance. The paragraph will also state that the report is not suitable for any other purpose. e. Your financial statements contain components, as defined by auditing standards generally accepted in the United States of America, which we also audit. f. In connection with our audit, we intend to place reliance on the audit of the financial statements of the Galesburg Public Library Foundation, a component of the Galesburg Public Library, a discretely presented component unit of the City, as of December 31, 2022 and for the year then ended completed by Blucker Kneer & Associates, Ltd. All necessary conditions have been met to allow us to make reference to the component auditors. g. In connection with our audit, we intend to place reliance on the audit of the financial statements of the Town of the City of Galesburg, a blended component unit of the City, as of December 31, 2022 and for the year then ended completed by Phillips, Salmi & Associates, LLC. All necessary conditions have been met to allow us to make reference to the component auditors. We are very interested in your views regarding certain matters. Those matters are listed here: a. We typically will communicate with your top level of management unless you tell us otherwise. b. We understand that the governing board has the responsibility to oversee the strategic direction of your organization, as well as the overall accountability of the entity. Management has the responsibility for achieving the objectives of the entity. c. We need to know your views about your organization’s objectives and strategies, and the related business risks that may result in material misstatements. d. We anticipate that the City will receive an unmodified opinion on its financial statements. e. Which matters do you consider warrant particular attention during the audit, and are there any areas where you request additional procedures to be undertaken? f. Have you had any significant communications with regulators or grantor agencies? g. Are there other matters that you believe are relevant to the audit of the financial statements? Also, is there anything that we need to know about the attitudes, awareness and actions of the governing body concerning: a. The entity’s internal control and its importance in the entity, including how those charged with governance oversee the effectiveness of internal control? b. The detection or the possibility of fraud? We also need to know if you have taken actions in response to developments in financial reporting, laws, accounting standards, governance practices, or other related matters, or in response to previous communications with us. © 2021 Baker Tilly US, LLP Page | 28 With regard to the timing of our audit, here is some general information. If necessary, we may do preliminary financial audit work during the month of January. Our final financial fieldwork is scheduled during the spring to best coincide with your readiness and report deadlines. After fieldwork, we wrap up our financial audit procedures at our office and may issue drafts of our report for your review. Final copies of our report and other communications are issued after approval by your staff. This is typically 6-12 weeks after final fieldwork, but may vary depending on a number of factors. Keep in mind that while this communication may assist us with planning the scope and timing of the audit, it does not change the auditor’s sole responsibility to determine the overall audit strategy and the audit plan, including the nature, timing and extent of procedures necessary to obtain sufficient appropriate audit evidence. We realize that you may have questions on what this all means, or wish to provide other feedback. We welcome the opportunity to hear from you. City of Galesburg, Illinois Report on Federal Awards December 31, 2021 City of Galesburg, Illinois Table of Contents December 31, 2021 Page Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Report on Compliance for the Major Federal; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3 Schedule of Expenditures of Federal Awards 6 Notes to Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 Summary of Prior Year Audit Findings 10 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards To the Mayor and City Council of City of Galesburg, Illinois We have audited, in accordance with the 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, the financial statements of the governmental activities, the business- type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Galesburg, (the City) as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated June 24, 2022. Our report includes a reference to other auditors who audited the financial statements of Town of the City of Galesburg and the Galesburg Public Library Foundation, as described in our report on the City’s financial statements. The financial statements of Town of the City of Galesburg and the Galesburg Public Library Foundation were not audited in accordance with Government Auditing Standards, and accordingly, this report does not include reporting on internal control over financial reporting or compliance and other matters associated with Town of the City of Galesburg and the Galesburg Public Library Foundation or that are reported on separately by those auditors who audited the financial statements of Town of the City of Galesburg and the Galesburg Public Library Foundation. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 1 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Oak Brook, Illinois June 24, 2022 2 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP Independent Auditors' Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Aw ards Required by the Uniform Guidance To the Mayor and City Council of City of Galesburg, Illinois Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited the City of Galesburg's (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City's major federal program for the year ended December 31, 2021. The City's major federal program is identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2021. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. W e believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation and maintenance of effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal programs. 3 Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. 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 GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of the major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, 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 City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 4 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. W e issued our report thereon dated June 24, 2022, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. Our report includes a reference to other auditors who audited the financial statements of the Town of the City of Galesburg and the Galesburg Public Library Foundation, as described in our report on the City's financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Oak Brook, Illinois June 24, 2022 5 See notes to schedule of expenditures of federal awards 6 Schedule of Expenditures of Federal Awards Year Ended December 31, 2021 Assistance Listing Grant Expenditures for Passed Through Federal Grantor/Pass Through Grantor/Program Title Number Number the Fiscal Year to Subrecipients U.S. Department of Housing and Urban Development Passed through Illinois Department of Commerce and Economic Opportunity Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii Community Development Block Grant 14.228 13-244421 25,000$ -$ Community Development Block Grant 14.228 16-246001 154,078 - Community Development Block Grant 14.228 18-248221 47,108 - Subtotal Community Development Block Grants/State's Program and Non- Entitlement Grants in Hawaii 226,186 - Lead Hazard Control for High Risk Areas Lead Based Paint 14.920 19-306001 361,013 - Lead Based Paint 14.920 19-307001 64,672 - Subtotal Lead Hazard Control for High Risk Areas 425,685 - Total U.S. Department of Housing and Urban Development 651,871 - U.S. Department of Justice Direct Bullet Proof Vest Partnership Program 16.607 N/A 2,766 - Equitable Sharing Program 16.922 N/A 11,571 - Total U.S. Department of Justice 14,337 - U.S. Department of Transportation Passed through Illinois Department of Transportation Formula Grants for Rural Areas and Tribal Transit Program Federal Operating Assistance - 2021 20.509 21-0338-21695 304,335 - COVID-19 - Formula Grants for Rural Areas 20.509 FAIN IL-2020-034-00 224,098 - Federal Operating Assistance - 2022 20.509 22-0338-29858 304,335 - Subtotal Formula Grants for Rural Areas and Tribal Transit Program 832,768 - Highway Safety Cluster State and Community Highway Safety 20.600 HS-22-0022, 04-02 2,252 - State and Community Highway Safety 20.600 HS-21-0021, 04-02 11,623 - Subtotal Highway Safety Cluster 13,875 - Total U.S. Department of Housing and Urban Development 846,643 - U.S. Department of Treasury Passed through Illinois Department of Commerce and Economic Opportunity COVID-19 - Coronavirus Relief Fund 21.019 20-488030 335,000 - Total U.S. Department of Treasury 335,000 - U.S. Environmental Protection Agency Passed through Illinois Environmental Protection Agency Drinking Water State Revolving Fund Cluster (M) Capitalization Grants for Drinking Water State Revolving Funds 66.468 L175672 524,828 - Capitalization Grants for Drinking Water State Revolving Funds 66.468 L175825 261,769 - Subtotal Drinking Water State Revolving Fund Cluster (M)786,597 - Total U.S. Environmental Protection Agency 786,597 - U.S. Department of Health and Human Services Passed through Western Illinois Area Agency on Aging Aging Cluster Special Programs for Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 N/A 18,005 - Subtotal Aging Cluster 18,005 - Total U.S. Department of Health and Human Services 18,005 - U.S. Department of Homeland Security Passed through Knox County Emergency Management Performance Grants 97.042 EMC-2019-EP-001 29,944 - Total U.S. Department of Homeland Security 29,944 - Total Expenditures of Federal Awards 2,682,397$ -$ . (M) - Denotes Major Program City of Galesburg, Illinois City of Galesburg, Illinois Notes to Schedule of Expenditures of Federal Awards December 31, 2021 7 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Galesburg under programs of the federal government for the year ended December 31, 2021. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of Galesburg, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of Galesburg. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. 3. Indirect Cost Rate The City of Galesburg has not elected to use the 10% de minimis indirect cost rate. City of Galesburg, Illinois Schedule of Findings and Questioned Costs Year Ended December 31, 2021 8 Section I - Summary of Auditors' Results Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: Material weakness (es) identified? yes X no Significant deficiency (ies) identified? yes X none reported Noncompliance material to financial statements noted? yes X no Federal and State Awards Internal control over major programs: Material weakness(es) identified? yes X no Significant deficiencies identified that are not considered to be material weakness(es)? yes X none reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 2 CFR 200.516(a) of the Uniform Guidance or the State Single Audit Guidelines? yes X no Auditee qualified as low-risk auditee? X yes no Identification of major federal programs: Assistance Listing Number Name of Federal Program or Cluster 66.468 Drinking Water State Revolving Fund Cluster Dollar threshold used to distinguish between type A and type B programs: $ 750,000 City of Galesburg, Illinois Schedule of Findings and Questioned Costs Year Ended December 31, 2021 9 Section II - Financial Statement Findings Required to be Reported in Accordance with Government Auditing Standards No findings were reported. Section III - Federal and State Awards Findings and Questioned Costs No findings were reported. City of Galesburg, Illinois Summary of Prior Year Audit Findings Year Ended December 31, 2021 10 Finding No.: 2020-001 Condition: In the water billing process, certain employees have access to enter account information. Billing adjustments entered by these same employees are not reviewed and approved. Current Status: The City has implemented compensating controls to mitigate risk associated with the segregation of duties issue. City of Galesburg TIF - Independent Auditors' Report on Compliance and Supplementary Information December 31, 2021 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP 1 Independent Auditors' Report on Compliance To the Mayor and City Council City of Galesburg, Illinois We have audited the financial statements of the City of Galesburg, Illinois, as of and for the year ended December 31, 2021, and have issued our report thereon dated June 24, 2022. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. In connection with our audit, nothing came to our attention that caused us to believe that the TIF 3 Regency Capital Project Fund, TIF Downtown Fund, TIF East Main Fund, and TIF IV Fund failed to comply with provisions of Subsection (q) of Section 11-74.4-3 of Public Act 85-1142, "An Act in Relation to Tax Increment Financing", insofar as it relates to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above-referenced statute, insofar as it relates to accounting matters. This report is intended solely for the information and use of the City Council, management, the State of Illinois, and others within the City and is not intended to be, and should not be, used by anyone other than the specified parties. Oak Brook, Illinois June 24, 2022 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2020 Baker Tilly US, LLP 2 Independent Auditors' Report on Supplementary Information To the Mayor and City Council of City of Galesburg, Illinois Report on the Financial Statements We have audited the financial statements of the governmental activities, business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Galesburg, Illinois (the City) as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated June 24, 2022 which contained unmodified opinions on those financial statements. Our report includes a reference to other auditors who audited the financial statements of the Town of the City of Galesburg and the Galesburg Public Library Foundation, as described in our report on the City of Galesburg's financial statements. Other Matter Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Galesburg's basic financial statements. TIF 3 Regency Capital Project Fund, TIF Downtown Fund, TIF East Main Fund, and TIF IV Fund Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 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 to 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 the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the TIF 3 Regency Capital Project Fund, TIF Downtown Fund, TIF East Main Fund, and TIF IV Fund Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual are fairly stated in all material respects, in relation to the basic financial statements as a whole. Report on Other Legal and Regulatory Requirements We have also issued our report dated June 24, 2022 on our tests of its compliance with Illinois State Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Oak Brook, Illinois June 24, 2022 3 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 76,350$ 76,350$ 74,943$ (1,407)$ Use of money and property 160 160 31 (129) Total revenues 76,510 76,510 74,974 (1,536) Expenditures Current: Miscellaneous 3,675 3,675 -3,675 Total expenditures 3,675 3,675 -3,675 Excess (deficiency) of revenues over expenditures 72,835 72,835 74,974 2,139 Other Financing Uses Transfers out (79,050) (79,050) -(79,050) Total other financing uses (79,050) (79,050) -(79,050) Net change in fund balance (6,215)$ (6,215)$ 74,974 81,189$ Fund Balance (Deficit), Beginning (440,582) Fund Balance (Deficit), Ending (365,608)$ City of Galesburg, Illinois TIF 3 Regency Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 4 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 227,290$ 227,290$ 216,696$ (10,594)$ Use of money and property 920 920 313 (607) Miscellaneous - - 591 591 Total revenues 228,210 228,210 217,600 (10,610) Expenditures Current: General government 306,560 10,560 3,047 7,513 Capital outlay 80,000 43,815 34,309 9,506 Total expenditures 386,560 54,375 37,356 17,019 Excess (deficiency) of revenues over expenditures (158,350) 173,835 180,244 6,409 Other Financing Uses Transfers out - (510,965) (510,964) (1) Total other financing uses - (510,965) (510,964) (1) Net change in fund balance (158,350)$ (337,130)$ (330,720) 6,410$ Fund Balance, Beginning 330,720 Fund Balance, Ending -$ City of Galesburg, Illinois TIF Downtown Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 5 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 511,000$ 406,915$ 406,916$ 1$ Use of money and property 2,655 425 424 (1) Total revenues 513,655 407,340 407,340 - Expenditures Current: General government 7,650 7,650 350 7,300 Miscellaneous 800,880 689,120 173,890 515,230 Total expenditures 808,530 696,770 174,240 522,530 Excess (deficiency) of revenues over expenditures (294,875) (289,430) 233,100 522,530 Other Financing Uses Transfers out (100,000) (211,760) (211,759) 1 Total other financing uses (100,000) (211,760) (211,759) 1 Net change in fund balance (394,875)$ (501,190)$ 21,341 522,531$ Fund Balance, Beginning 564,314 Fund Balance, Ending 585,655$ City of Galesburg, Illinois TIF East Main Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 6 Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Taxes 352,240$ 352,240$ 352,603$ 363$ Use of money and property 1,870 1,870 1,257 (613) Miscellaneous 100,000 --- Total revenues 454,110 354,110 353,860 (250) Expenditures Current: General government 127,650 127,650 7,569 120,081 Miscellaneous 592,520 478,425 379,301 99,124 Capital outlay 100,000 214,095 114,096 99,999 Total expenditures 820,170 820,170 500,966 319,204 Excess (deficiency) of revenues over expenditures (366,060) (466,060) (147,106) 318,954 Other Financing Sources Transfers in 100,000 543,945 543,942 (3) Total other financing sources 100,000 543,945 543,942 (3) Net change in fund balance (266,060)$ 77,885$ 396,836 318,951$ Fund Balance, Beginning 515,758 Fund Balance, Ending 912,594$ City of Galesburg, Illinois TIF IV Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year Ended December 31, 2021 User: Printed:07/11/2022 - 4:41PM ABrown Transactions by Account Batch:00018.07.2022 Accounts Payable Account Number Vendor AmountDescription PO No Date 001-0000-10407-00 Knox County Treasurer Return TIF 1 property taxes sent to the City in error 72,335.6807/11/2022 001-0000-10407-00 Amanda Jennings Cell Phone Allow - AJennings 15.0006/30/2022 001-0000-10701-00 ILEAS (IL Law Enforce. Alarm Sys.)01/23 - 06/23 ILEAS annual dues 120.0007/11/2022 001-0000-10801-00 Mutual Wheel Co., Inc.Top lights 299.8807/11/2022 001-0000-10801-00 Map Automotive of Peoria Batteries 355.5006/30/2022 001-0000-20102-00 Stratus Networks, Inc 07/22 Service 1,327.3407/11/2022 74,453.40Subtotal for Divison: 0000 001-0105-51000-00 Baker Tilly US, LLP 2021 Fiscal Year Audit 4,715.00 000009219107/11/2022 001-0105-54000-00 Dwight White Cell Phone Allowance 30.0006/30/2022 001-0105-54000-00 W Wayne Dennis Cell Phone Allowance 30.0006/30/2022 001-0105-54000-00 Bradley Hix Cell Phone Allowance 30.0006/30/2022 4,805.00Subtotal for Divison: 0105 001-0110-61000-00 Office Specialists, Inc.Pens 47.6207/11/2022 47.62Subtotal for Divison: 0110 001-0115-51000-00 Knox County Recorders Office 06/22 Laredo 20.7007/11/2022 001-0115-51000-00 SpringbrookSoftware LLC 06/22 CivicPay PayPad Transaction Fee 12.0007/11/2022 001-0115-54000-00 Kelli Bennewitz Cell Phone Allowance 30.0006/30/2022 62.70Subtotal for Divison: 0115 001-0145-51000-00 D&S Private Detective, Inc Paper process service - S Burkhalter 81.0007/11/2022 001-0145-51000-00 D&S Private Detective, Inc Non-service - P Carlson Jr 70.5007/11/2022 001-0145-51000-00 D&S Private Detective, Inc Paper process service - M Jacobson 70.5007/11/2022 001-0145-51010-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 7,079.9007/11/2022 001-0145-51010-00 James M Kelly, Attorney 03/22 Legal Services 280.5007/11/2022 001-0145-51010-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 2,211.0007/11/2022 001-0145-51010-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 2,293.5007/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 1 22-8013 Account Number Vendor AmountDescription PO No Date 001-0145-51010-00 James M Kelly, Attorney 03/22 Legal Services 16.5007/11/2022 001-0145-51010-00 Statham & Long, LLC 04/22 & 05/22 Adjudication 918.0007/11/2022 001-0145-54000-00 Bradley Nolden Cell Phone Allowance 30.0006/30/2022 13,051.40Subtotal for Divison: 0145 001-0160-51000-00 Collection Professionals, Inc 06/22 Service 120.0007/11/2022 001-0160-59516-00 Jeffrey R Cervantez 06/22 AV Services for City Meetings 120.0007/11/2022 001-0160-59516-00 Matthew Reed 06/22 AV Services for City meetings 156.0007/11/2022 396.00Subtotal for Divison: 0160 001-0205-49500-00 Sharon Heiden Tuition and books reimbursement 300.0007/11/2022 001-0205-51000-00 SpringbrookSoftware LLC 06/22 CivicPay PayPad Transaction Fee 71.7507/11/2022 001-0205-54000-00 Tifani Miller Cell Phone Allowance 30.0006/30/2022 001-0205-54000-00 Gloria Osborn Cell Phone Allowance 30.0006/30/2022 001-0205-54500-00 Gloria Osborn Mileage - IMTA Conference - Springfield, IL - G Osborn 147.4207/11/2022 001-0205-55800-00 Walz Label & Mailing Systems Pressure sealer repair 227.2507/11/2022 806.42Subtotal for Divison: 0205 001-0207-54000-00 Lewis Doney II Cell Phone Allowance 30.0006/30/2022 001-0207-54000-00 Orlando Lucero Cell Phone Allowance 30.0006/30/2022 001-0207-54000-00 Kerzi Peterson Cell Phone Allowance 30.0006/30/2022 001-0207-61700-00 Galesburg Electric, Inc.Cross connects 58.4707/11/2022 148.47Subtotal for Divison: 0207 001-0305-51500-00 Gatehouse Media Zoning amendment - 1156 N Seminary #00118434 - Acct #21744 102.7607/11/2022 001-0305-51500-00 Gatehouse Media Public Notice #00118435 - Acct #21744 134.5607/11/2022 001-0305-54000-00 Stephen Gugliotta Cell Phone Allowance 30.0006/30/2022 267.32Subtotal for Divison: 0305 001-0306-51000-00 Knox County Recorders Office 06/22 Laredo 20.7007/11/2022 001-0306-51000-00 SpringbrookSoftware LLC 06/22 CivicPay PayPad Transaction Fee 25.7507/11/2022 001-0306-54000-00 Robert Elsbury Cell Phone Allowance 30.0006/30/2022 001-0306-54000-00 Eric Heiden Cell Allowance 30.0006/30/2022 001-0306-54000-00 Tammera Matejewski Cell Phone Allowance 30.0006/30/2022 001-0306-54000-00 Richard Slagel Cell Phone Allowance 30.0006/30/2022 001-0306-61000-00 Office Specialists, Inc.Highlighters 10.3807/11/2022 001-0306-61000-00 Office Specialists, Inc.Crayons, sticky notes 48.0507/11/2022 001-0306-61000-00 Office Specialists, Inc.Legal pads, plastic silverware 52.2707/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 2 Account Number Vendor AmountDescription PO No Date 001-0306-61000-00 Office Specialists, Inc.Plastic spoons 5.0307/11/2022 001-0306-61000-00 Office Specialists, Inc.Key tags 8.5007/11/2022 290.68Subtotal for Divison: 0306 001-0410-51000-00 SpringbrookSoftware LLC 06/22 CivicPay PayPad Transaction Fee 25.7507/11/2022 001-0410-51000-00 Knox County Recorders Office 06/22 Laredo 20.7007/11/2022 001-0410-54000-00 Jamie West Cell Phone Allowance 30.0006/30/2022 001-0410-54000-00 Nolan Peterson Cell Phone Allowance 30.0006/30/2022 001-0410-54000-00 Wayne Carl Cell Phone Allowance 30.0006/30/2022 001-0410-54000-00 Aaron Gavin Cell Phone Allowance 30.0006/30/2022 001-0410-54000-00 Malinda Davis Cell Phone Allowance 30.0006/30/2022 001-0410-54000-00 Brayden Bledsoe Cell Phone Allowance 30.0006/30/2022 001-0410-61000-00 Office Specialists, Inc.Letter opener, binder clips 10.9307/11/2022 001-0410-61000-00 Office Specialists, Inc.Plastic spoons 5.0207/11/2022 001-0410-61000-00 Office Specialists, Inc.plastic silverware 22.2907/11/2022 001-0410-61000-00 Office Specialists, Inc.Folders 21.5707/11/2022 286.26Subtotal for Divison: 0410 001-0445-54000-00 Myron Miller Cell Phone Allowance 30.0006/30/2022 001-0445-55500-00 Heritage-Crystal Clean, LLC Used oil pickup 41.2507/11/2022 001-0445-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #168 40.0007/11/2022 001-0445-55500-00 Map Automotive of Peoria Core credit -70.0007/11/2022 001-0445-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #152 39.0007/11/2022 001-0445-55700-00 Royal Cleaning Services 07/22 Janitorial services 266.0007/11/2022 001-0445-55700-00 Four Seasons Pest Control 06/22 Service 20.0007/11/2022 001-0445-57500-00 Aramark Uniform Serv. Inc.06/22 Service 61.8407/11/2022 001-0445-57500-00 Aramark Uniform Serv. Inc.07/22 Service 61.8407/11/2022 001-0445-62500-00 Advance Auto Parts Washer pump #606 23.9107/11/2022 001-0445-62500-00 Advance Auto Parts Ignition coil #162 50.0107/11/2022 001-0445-62500-00 Advance Auto Parts Oil filter #165 3.9507/11/2022 001-0445-63000-00 Advance Auto Parts Plastic weld 15.2407/11/2022 001-0445-63000-00 Advance Auto Parts Multipurpose cleaner 22.8907/11/2022 001-0445-63000-00 Advance Auto Parts Paint marker 5.9907/11/2022 001-0445-63000-00 Brozene Hydraulic Service Injection caps 7.9007/11/2022 001-0445-63000-00 Napa Auto Parts Nylon harness bracket 10.5807/11/2022 630.40Subtotal for Divison: 0445 001-0450-54000-00 JR Knaack Cell Phone Allowance 30.0006/30/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 3 Account Number Vendor AmountDescription PO No Date 001-0450-54000-00 Justin McNaught Cell Phone Allowance 30.0006/30/2022 001-0450-55500-00 Nichols Diesel Service, Inc.Front end alignment #108 325.0007/11/2022 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #140 40.0007/11/2022 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #107 41.0007/11/2022 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #109 40.0007/11/2022 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #108 40.0007/11/2022 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #142 40.0007/11/2022 001-0450-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #138 40.0007/11/2022 001-0450-55700-00 Sullivan Door Co.Garage door repair 445.4107/11/2022 001-0450-55700-00 Four Seasons Pest Control 03/22 Service 40.0007/11/2022 001-0450-55700-00 AMP Electrical Services, Inc.Plumbing installation - 122 S Henderson 1,941.7207/11/2022 001-0450-59300-00 UniFirst First Aid Corp First aid supplies 127.9807/11/2022 001-0450-62500-00 Mutual Wheel Co., Inc.Leaf springs #115 1,206.8207/11/2022 001-0450-62500-00 Nichols Diesel Service, Inc.Cab valve #115 273.6607/11/2022 001-0450-62500-00 Nichols Diesel Service, Inc.Locator bolt #115 36.6807/11/2022 001-0450-62500-00 Advance Auto Parts Mudflaps #115 42.7407/11/2022 001-0450-62500-00 Advance Auto Parts Filter kit #306 16.6007/11/2022 001-0450-62500-00 Advance Auto Parts Oil #306 7.8107/11/2022 001-0450-65000-00 Office Specialists, Inc.Bath tissue 66.4207/11/2022 001-0450-65500-00 Lawson Products, Inc.Plow bolts 644.0407/11/2022 5,475.88Subtotal for Divison: 0450 001-0510-51000-00 Bridgeway Training Services 125 lbs secure document destruction 25.0007/11/2022 001-0510-54000-00 Bryan Anderson Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 William T. Boynton Cell Allowance 8.0006/30/2022 001-0510-54000-00 Daniel Hostens Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Kevin Legate Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Russell Idle Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Steffanie Cromien Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Patrick Kisler Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Lane Mings Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Ryne Sage Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Anthony Oligney-Estill Cell Phone Allowance 30.0006/30/2022 001-0510-54000-00 Jason Shaw Cell Phone Allowance 30.0006/30/2022 001-0510-55000-00 Illinois Police Association 2022 IPA Dues - R Idle 33.0007/11/2022 001-0510-55000-00 ILEAS (IL Law Enforce. Alarm Sys.)07/22 - 12/22 ILEAS annual dues 120.0007/11/2022 001-0510-55500-00 Berg's Towing & Auto, Inc.Flat bed tow service #48 500.0007/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 4 Account Number Vendor AmountDescription PO No Date 001-0510-57500-00 Burke Cleaners, Inc 2022 Police Uniform Cleaning as per agreement 134.99 000009214007/11/2022 001-0510-61700-00 Southern Computer Warehouse Kit ACC vehicle cradle 215.5607/11/2022 001-0510-62500-00 Advance Auto Parts Fuel filter #48 43.0507/11/2022 001-0510-62500-00 Advance Auto Parts Core return credit - caliper #31 -60.0007/11/2022 001-0510-62500-00 Ford of Galesburg Oxygen sensor #24 123.2707/11/2022 001-0510-62500-00 Ford of Galesburg Stabilizer link #5 117.6207/11/2022 001-0510-66500-00 Safariland, LLC Tamper evident tape 59.8707/11/2022 001-0510-67500-00 Ray O'Herron Co., Inc.Streetshirts - A Hardine 58.0007/11/2022 001-0510-67500-00 Ray O'Herron Co., Inc.New hire uniforms 2,637.5407/11/2022 001-0510-67500-00 Ray O'Herron Co., Inc.Raincoat return -61.1907/11/2022 001-0510-67500-00 Ray O'Herron Co., Inc.New hire uniforms 1,055.0007/11/2022 001-0510-67500-00 Ray O'Herron Co., Inc.Raincoat return -61.1907/11/2022 001-0510-67500-00 Ray O'Herron Co., Inc.Patrol outer vest carrier - J Taylor 255.6307/11/2022 5,504.15Subtotal for Divison: 0510 001-0550-54000-00 Cameron Lemaster Cell Phone Allowance 30.0006/30/2022 001-0550-54000-00 Amanda Jennings Cell Allowance 15.0006/30/2022 001-0550-61000-00 Office Specialists, Inc.Paper 219.9507/11/2022 264.95Subtotal for Divison: 0550 001-0605-54000-00 John Seitz Cell Phone Allowance 30.0006/30/2022 001-0605-54000-00 David Farrell Cell Phone Allowance 30.0006/30/2022 001-0605-54000-00 Randy Hovind Cell Phone Allowance 30.0006/30/2022 001-0605-54000-00 Donald Brackett Cell Phone Allowance 30.0006/30/2022 001-0605-54000-00 Derek Perry Cell Phone Allowance 30.0006/30/2022 001-0605-54500-00 University of Illinois Basic Firefighter Trng #202201720 - H Stevenson @01095967 6,900.0007/11/2022 001-0605-55000-00 Kyle Sampier Reimbursement - EMT-P licensing - K Sampier 41.0007/11/2022 001-0605-55500-00 Getz Fire Equipment Co., Inc.Annual extinguisher service 460.5007/11/2022 001-0605-55500-00 Municipal Emergency Services, Inc SCBA Flow Tests 3,238.8107/11/2022 001-0605-65000-00 Office Specialists, Inc.Vehicle wash 69.0007/11/2022 001-0605-65000-00 Office Specialists, Inc.Disinfectant, urinal screen, dish soap, paper towels 111.1507/11/2022 001-0605-67500-00 Midwest Uniform Supply, Inc Cap - N Walters 16.5007/11/2022 10,986.96Subtotal for Divison: 0605 Subtotal for Fund 001 117,477.61 011-0000-55700-00 Gunther Construction Co., a div. of UCM, Inc2022 Intermittent Resurfacing 57,522.61 000009220807/11/2022 011-0000-66000-00 Mill Creek Mining, Inc CA-6 White Rock for 2022 1,979.04 000009208607/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 5 Account Number Vendor AmountDescription PO No Date 011-0000-66000-00 Tazewell County Asphalt Co, Inc Hot mix asphalt surface & binder for 2022 2,249.25 000009208507/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.Portand Cement Concrete for 2022 985.50 000009208907/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.High performance patching mix for 2022 706.09 000009208807/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.Portand Cement Concrete for 2022 410.63 000009208907/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.Portand Cement Concrete for 2022 541.51 000009208907/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.Portand Cement Concrete for 2022 1,368.00 000009208907/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.Portand Cement Concrete for 2022 228.00 000009208907/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.High performance patching mix for 2022 1,552.26 000009208807/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.High performance patching mix for 2022 254.70 000009208807/11/2022 011-0000-66000-00 Galesburg Builders Supply, Inc.Portand Cement Concrete for 2022 1,311.00 000009208907/11/2022 69,108.59Subtotal for Divison: 0000 Subtotal for Fund 011 69,108.59 013-0000-20103-00 JC Dillon, Inc Retainage - Phase V of lead service line replacements -21,664.3007/11/2022 013-0000-20103-00 JC Dillon, Inc Release Retainage - Phase V of lead service line replacements 171,767.7007/11/2022 013-0000-51000-00 Klingner & Associates, P.C. - Architectural GroupPreparation of Bid Documents for Hawthorne Pool Building 5,505.75 000009219907/11/2022 013-0000-83100-00 Psychotherapy and Social Work Consulting Ser, PLLCBusiness Startup Assistance Program 693.9307/11/2022 013-0000-83100-00 JC Dillon, Inc Phase V of lead service line replacements 180,999.79 000009199407/11/2022 013-0000-83100-00 JC Dillon, Inc Phase V of lead service line replacements 216,643.00 000009199407/11/2022 553,945.87Subtotal for Divison: 0000 Subtotal for Fund 013 553,945.87 014-0000-55700-00 Laverdiere Construction, Inc.2022 Miscellaneous Sidewalk Replacement 131,806.00 000009220707/11/2022 014-0000-64500-00 Sherwin Williams Co.Paint, painting supplies 225.3707/11/2022 014-0000-64500-00 Midstate Manufacturing, Inc.Hoses for paint machine 131.2807/11/2022 014-0000-64500-00 Grainger, Inc.Orange sand bags 137.2607/11/2022 014-0000-64500-00 Grainger, Inc.Tips for paint machine 185.9607/11/2022 014-0000-64500-00 Grainger, Inc.Solar barricade lights 378.3007/11/2022 014-0000-66000-00 Unique Paving Materials Co Crack filler 172.4607/11/2022 014-0000-66000-00 Galesburg Builders Supply, Inc.200 LF reinforcement bars 70.0007/11/2022 014-0000-66000-00 Galesburg Builders Supply, Inc.Controlled Low Strength Material (CLSM) for 2022 520.00 000009209207/11/2022 014-0000-66000-00 Galesburg Builders Supply, Inc.Controlled Low Strength Material (CLSM) for 2022 552.50 000009209207/11/2022 014-0000-78010-00 Gunther Construction Co., a div. of UCM, IncWest Street Reconstruction - Tompkins to Main 48,925.73 000009219307/11/2022 014-0000-78050-00 Gunther Construction Co., a div. of UCM, IncWest Street Reconstruction - storm drain portion 70,094.05 000009219307/11/2022 014-0000-78070-00 Gunther Construction Co., a div. of UCM, IncWest Street Reconstruction - Sidewalk portion 49,682.47 000009219307/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 6 Account Number Vendor AmountDescription PO No Date 302,881.38Subtotal for Divison: 0000 Subtotal for Fund 014 302,881.38 016-0000-22002-00 Illinois State Police Asset Seizure & ForfeitureSeizure Funds - # IL 22-7142 823.0007/11/2022 016-0000-54000-00 Mark McLaughlin Cell Allowance 30.0006/30/2022 016-0000-54000-00 Kyle A Winbigler Cell Phone Allowance 30.0006/30/2022 016-0000-54000-00 Paul Vannaken Cell Phone Allowance 30.0006/30/2022 016-0000-54000-00 Timothy Spitzer Cell Phone Allowance 30.0006/30/2022 016-0000-54000-00 Travis Smith Cell Phone Allowance 30.0006/30/2022 973.00Subtotal for Divison: 0000 Subtotal for Fund 016 973.00 018-0000-55500-00 Mission Communications, LLC Legacy radio/daughterboard assembly 310.0007/11/2022 018-0000-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #131 40.0007/11/2022 018-0000-55500-00 Martin, Inc Diagnostic test machine service #128 661.7207/11/2022 018-0000-62500-00 Key Equipment & Supply Co Pressure switch #125 97.1307/11/2022 018-0000-62500-00 Nichols Diesel Service, Inc.Elbow #125 14.9007/11/2022 018-0000-62500-00 Napa Auto Parts Wire #105 36.0007/11/2022 018-0000-62500-00 Galesburg Welding, Inc Square tube #105 35.6307/11/2022 018-0000-62500-00 Coe Equipment, Inc Elbow #131 954.1707/11/2022 2,149.55Subtotal for Divison: 0000 Subtotal for Fund 018 2,149.55 019-0000-20102-00 Stratus Networks, Inc 07/22 Service 309.0807/11/2022 309.08Subtotal for Divison: 0000 019-1905-51500-00 WGIL/WAAG/WLSR, Inc.Radio ads 583.0007/11/2022 019-1905-51500-00 WMOI - FM Radio ads 260.0007/11/2022 019-1905-51500-00 WMOI - FM Radio ads 500.0007/11/2022 019-1905-54000-00 Angela Buchen Cell Allowance 30.0006/30/2022 019-1905-54000-00 Elizabeth Varner Cell Phone Allowance 30.0006/30/2022 019-1905-54000-00 Chelsea Moberg Cell Phone Allowance 24.0006/30/2022 019-1905-59511-00 Galesburg Tourism Fund 06/22 Tourism agreement 15,833.3306/30/2022 019-1905-61000-00 Office Specialists, Inc.Paper, folders, facial tissue, cups 78.0107/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 7 Account Number Vendor AmountDescription PO No Date 17,338.34Subtotal for Divison: 1905 019-1910-55700-00 Tee Jay Central, Inc.City Hall entry door repair 1,097.5307/11/2022 019-1910-55700-00 Four Seasons Pest Control 06/22 Service 30.0007/11/2022 019-1910-65000-00 Office Specialists, Inc.Paper towels 26.2907/11/2022 1,153.82Subtotal for Divison: 1910 019-1911-55700-00 Four Seasons Pest Control 06/22 Service 30.0007/11/2022 019-1911-55700-00 UniFirst First Aid Corp First aid supplies 139.3207/11/2022 019-1911-55700-00 Mechanical Service Inc.Toilet repair 199.2507/11/2022 019-1911-57500-00 Aramark Uniform Serv. Inc.06/22 Service 62.5507/11/2022 019-1911-57500-00 Aramark Uniform Serv. Inc.07/22 Service 62.5507/11/2022 019-1911-65000-00 Office Specialists, Inc.Paper towels 184.9507/11/2022 019-1911-65000-00 Office Specialists, Inc.Paper towels 184.9507/11/2022 019-1911-65000-00 Office Specialists, Inc.Trash liners, paper towels 121.7307/11/2022 985.30Subtotal for Divison: 1911 019-1915-54000-00 Michael Markley Cell Phone Allowance 30.0006/30/2022 019-1915-54000-00 Don Miles Cell Phone Allowance 30.0006/30/2022 019-1915-54000-00 Jason Asbury Cell Phone Allowance 30.0006/30/2022 019-1915-54000-00 Travis Huffman Cell Phone Allowance 30.0006/30/2022 019-1915-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #502 41.0007/11/2022 019-1915-55500-00 Beames Welding & Repair Inc 4 in 1 bucket repair 4,670.7607/11/2022 019-1915-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #503 40.0007/11/2022 019-1915-55500-00 Galesburg Electric, Inc.Annual generator service 185.0007/11/2022 019-1915-55700-00 Waste Management, Inc.06/22 Service 424.1807/11/2022 019-1915-55700-00 Four Seasons Pest Control 07/22 Service 40.0007/11/2022 019-1915-55700-00 Four Seasons Pest Control 07/22 Service 30.0007/11/2022 019-1915-57500-00 Aramark Uniform Serv. Inc.06/22 Service 51.4607/11/2022 019-1915-57500-00 Aramark Uniform Serv. Inc.07/22 Service 51.4607/11/2022 019-1915-62500-00 Pomp's Tire - Galesburg Tires #544 302.2607/11/2022 019-1915-62500-00 Map Automotive of Peoria AC compressor #544 345.4507/11/2022 019-1915-62500-00 Martin, Inc Link end #522 96.7307/11/2022 019-1915-62500-00 Advance Auto Parts Batteries #507 238.8007/11/2022 019-1915-62500-00 Advance Auto Parts Serpentine belt #544 21.7707/11/2022 019-1915-62500-00 Advance Auto Parts Core return credit - batteries #507 -54.0007/11/2022 019-1915-62500-00 Advance Auto Parts Belt tensioner #544 33.8707/11/2022 019-1915-62500-00 Advance Auto Parts Brake pads #544 48.0907/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 8 Account Number Vendor AmountDescription PO No Date 019-1915-62510-00 Herr Petroleum Corp 365.6 Gal diesel #2, 541 gal reg unleaded 4,147.58 000009210307/11/2022 019-1915-62510-00 Herr Petroleum Corp 382.10 Gal diesel #2, 406 gal reg unleaded 3,410.45 000009210307/11/2022 019-1915-65000-00 Office Specialists, Inc.Trash liners 305.1807/11/2022 019-1915-65500-00 Terry Allen, Inc Belt-ferris deck drives 269.2007/11/2022 019-1915-65500-00 Game Time Replacement parts - Lombard/Kiwanis Park 1,048.8807/11/2022 019-1915-66000-00 Galesburg Electric, Inc.Electronic photo control 30.0407/11/2022 019-1915-66000-00 Galesburg Electric, Inc.Universal box, safety switch, halogen bulbs 155.4807/11/2022 019-1915-66500-00 Tri-State Water Stenner pumps 1,633.9007/11/2022 019-1915-68500-00 Hawkins, Inc Misc chemicals 981.2107/11/2022 18,668.75Subtotal for Divison: 1915 019-1920-54000-00 Bryan Luedtke Cell Phone Allowance 30.0006/30/2022 019-1920-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #551 39.0007/11/2022 019-1920-55700-00 Four Seasons Pest Control 07/22 Service 20.0007/11/2022 019-1920-57500-00 Aramark Uniform Serv. Inc.07/22 Service 39.5107/11/2022 019-1920-57500-00 Aramark Uniform Serv. Inc.06/22 Service 39.5107/11/2022 019-1920-62510-00 Herr Petroleum Corp 74.7 Gal diesel #2, 224.9 gal reg unleaded 1,332.99 000009210407/11/2022 019-1920-62510-00 Herr Petroleum Corp 235.1 Gal diesel #2, 221.1 gal reg unleaded 2,155.85 000009210407/11/2022 019-1920-62510-00 Herr Petroleum Corp 140.60 Gal diesel #2, 39.6 gal reg unleaded 810.67 000009210407/11/2022 019-1920-64000-00 Black Clover Enterprises, LLC Ball caps 384.2507/11/2022 019-1920-64125-00 Smithfield Direct, LLC Misc concessions 79.8007/11/2022 019-1920-64125-00 Butch's Pizza Inc.Pizzas 24.5007/11/2022 019-1920-64125-00 Atlantic Coca-Cola Misc concessions 809.6907/11/2022 019-1920-64125-00 Atlantic Coca-Cola Misc concessions 697.7507/11/2022 019-1920-64125-00 Atlantic Coca-Cola Misc concessions 835.8807/11/2022 019-1920-64125-00 SCNS SPORTS FOODS Misc concessions 144.6007/11/2022 019-1920-64125-00 Smithfield Direct, LLC Misc concessions 79.8007/11/2022 019-1920-65000-00 Office Specialists, Inc.Bath tissue 114.5307/11/2022 019-1920-88300-00 M&M Golf Cars, LLC 2022 Lease of 48 golf carts and 1 utility vehicle as per bid 5,335.97 000009208007/11/2022 12,974.30Subtotal for Divison: 1920 019-1925-56000-00 Terry Allen, Inc Lake Storey Park - Toilet Rental 18 regular units - One day 1,080.00 000009208107/11/2022 019-1925-56000-00 Terry Allen, Inc Lake Storey Park - Toilet Rental - 2 handicapped units - One day 170.00 000009208107/11/2022 019-1925-56000-00 Terry Allen, Inc Lake Storey Park - 2 Hand Wash Stations - One day rental 7/4/22 120.00 000009208107/11/2022 019-1925-64000-00 Volrath Hardwoods, LLC 300 Bundles 1,200.0007/11/2022 019-1925-64000-00 The Home City Ice Company Bagged ice 179.1507/11/2022 019-1925-66000-00 Galesburg Electric, Inc.RV receptacles 94.1607/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 9 Account Number Vendor AmountDescription PO No Date 2,843.31Subtotal for Divison: 1925 019-1930-64125-00 Atlantic Coca-Cola Misc concessions 176.1707/11/2022 019-1930-64125-00 Atlantic Coca-Cola Misc concessions 161.3807/11/2022 337.55Subtotal for Divison: 1930 019-1935-55700-00 Four Seasons Pest Control 07/22 Service 35.0007/11/2022 019-1935-57500-00 Aramark Uniform Serv. Inc.07/22 Service 231.4207/11/2022 019-1935-57500-00 Aramark Uniform Serv. Inc.06/22 Service 231.4207/11/2022 497.84Subtotal for Divison: 1935 019-1940-51400-00 Allana Blankenship Nature Camp Coordinator - 1st installment 325.0007/11/2022 019-1940-64000-00 Breedlove's Sporting Goods, Inc.G force t shirts 1,093.0007/11/2022 019-1940-64125-00 Gold Medal - Central Illinois, LLC Misc concessions 115.7007/11/2022 019-1940-64125-00 Atlantic Coca-Cola Misc concessions 59.2107/11/2022 019-1940-64125-00 Atlantic Coca-Cola Misc concessions 68.0407/11/2022 1,660.95Subtotal for Divison: 1940 019-1945-55700-00 Four Seasons Pest Control 07/22 Service 20.0007/11/2022 019-1945-65000-00 Office Specialists, Inc.Paper towels, toilet cleaner 100.4607/11/2022 019-1945-65000-00 Office Specialists, Inc.Bath tissue 83.8807/11/2022 019-1945-65000-00 Office Specialists, Inc.All purpose cleaner 79.0507/11/2022 283.39Subtotal for Divison: 1945 019-1950-55700-00 J.P. Benbow, Inc.Toilet repair - womens restroom 403.8207/11/2022 019-1950-55700-00 Four Seasons Pest Control 07/22 Service 25.0007/11/2022 019-1950-64125-00 Gold Medal - Central Illinois, LLC Misc concessions 592.9207/11/2022 019-1950-64125-00 Gold Medal - Central Illinois, LLC Misc concessions 840.2407/11/2022 019-1950-64125-00 Butch's Pizza Inc.Pizzas, beef sticks 212.3007/11/2022 019-1950-64125-00 Butch's Pizza Inc.Pizzas, beef sticks 344.6007/11/2022 019-1950-64125-00 Gold Medal - Central Illinois, LLC Misc concessions 1,382.1507/11/2022 019-1950-64125-00 Atlantic Coca-Cola Misc concessions 511.8207/11/2022 019-1950-64125-00 Atlantic Coca-Cola Misc concessions 561.7407/11/2022 019-1950-65500-00 Lincoln Aquatics Dual lock telepole 169.4107/11/2022 019-1950-66000-00 Sherwin Williams Co.Paint 1,481.0007/11/2022 019-1950-68500-00 Hawkins, Inc Misc chemicals 830.8507/11/2022 019-1950-68500-00 Hawkins, Inc Misc chemicals 425.2307/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 10 Account Number Vendor AmountDescription PO No Date 7,781.08Subtotal for Divison: 1950 019-1955-55700-00 Four Seasons Pest Control 07/22 Service 20.0007/11/2022 20.00Subtotal for Divison: 1955 019-1960-55700-00 Four Seasons Pest Control 07/22 Service 20.0007/11/2022 20.00Subtotal for Divison: 1960 019-1965-54000-00 Roger Darst Cell Phone Allowance 30.0006/30/2022 019-1965-55700-00 Four Seasons Pest Control 06/22 Service 20.0007/11/2022 019-1965-57500-00 Aramark Uniform Serv. Inc.06/22 Service 35.8307/11/2022 019-1965-57500-00 Aramark Uniform Serv. Inc.07/22 Service 35.8307/11/2022 121.66Subtotal for Divison: 1965 019-1975-54000-00 Cris Fones Cell Phone Allowance 30.0006/30/2022 019-1975-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #103 40.0007/11/2022 019-1975-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #106 40.0007/11/2022 019-1975-55500-00 Nichols Diesel Service, Inc.State & Fed Tests #144 40.0007/11/2022 150.00Subtotal for Divison: 1975 Subtotal for Fund 019 65,145.37 020-0000-10701-00 IL Environmental Protection Agency 01/23 - 06/23 Annual NPDES Fee #ILR002956 (A) 250.0007/11/2022 020-0000-55000-00 IL Environmental Protection Agency 07/22 - 12/22 Annual NPDES Fee #ILR002956 (A) 250.0007/11/2022 020-0000-55700-00 J.P. Benbow, Inc.Thermostat replacement and relocation 676.4207/11/2022 1,176.42Subtotal for Divison: 0000 Subtotal for Fund 020 1,176.42 024-0000-52000-00 Ameren Illinois 06/22 Electricity #5346260034 92.4506/30/2022 024-0000-52000-00 Ameren Illinois 06/22 Electricity #5244167035 35.7706/30/2022 024-0000-83100-00 Galesburg Railroad Days 2022 External Agency Award - final payment 3,782.5007/11/2022 024-0000-83100-00 Community School District 205 Skills USA Program 2,921.57 000009217507/11/2022 6,832.29Subtotal for Divison: 0000 Subtotal for Fund 024 6,832.29 025-0000-83100-00 IPREH, LLC Revolving Loan - IPREH LLC 250,000.0007/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 11 Account Number Vendor AmountDescription PO No Date 250,000.00Subtotal for Divison: 0000 Subtotal for Fund 025 250,000.00 026-0000-51000-00 Baker Tilly US, LLP 2021 Fiscal Year Audit 900.00 000009219107/11/2022 900.00Subtotal for Divison: 0000 Subtotal for Fund 026 900.00 030-0000-20102-00 Stratus Networks, Inc 07/22 Service 131.4807/11/2022 131.48Subtotal for Divison: 0000 030-0320-51500-00 WGIL/WAAG/WLSR, Inc.06/22 Radio ads 200.0006/30/2022 030-0320-52000-00 Ameren Illinois 06/22 Electricity #6235036022 322.4506/30/2022 030-0320-52300-00 Ameren Illinois 06/22 Heat #6235036022 50.4106/30/2022 030-0320-62500-00 Ford of Galesburg Gear assembly, pin, gasket 916.6306/30/2022 030-0320-62500-00 Napa Auto Parts Tie rod, sleeve, tie rod end 241.0606/30/2022 030-0320-62500-00 Napa Auto Parts Hanger bearing 54.6906/30/2022 030-0320-62500-00 Napa Auto Parts Connector 49.5906/30/2022 030-0320-62510-00 Herr Petroleum Corp 234.8 Gal reg unleaded 1,072.89 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 230.3 Gal reg unleaded 976.80 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 243.4 Gal reg unleaded 1,033.46 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 217 Gal reg unleaded 991.57 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 168.5 Gal reg unleaded 769.95 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 240.8 Gal reg unleaded 1,021.33 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 249.6 Gal reg unleaded 1,059.78 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 220.8 Gal reg unleaded 993.14 000009210106/30/2022 030-0320-62510-00 Herr Petroleum Corp 264.3 Gal reg unleaded 1,121.01 000009210106/30/2022 10,874.76Subtotal for Divison: 0320 030-0370-51000-00 Baker Tilly US, LLP 2021 Fiscal Year Audit 2,620.00 000009219107/11/2022 030-0370-51500-00 WGIL/WAAG/WLSR, Inc.06/22 Radio ads 200.0006/30/2022 030-0370-52000-00 Ameren Illinois 06/22 Electricity #6235036022 752.4006/30/2022 030-0370-52300-00 Ameren Illinois 06/22 Heat #6235036022 117.6306/30/2022 030-0370-54000-00 Ronald Larson Cell Phone Allowance 30.0006/30/2022 030-0370-54000-00 Kraig Boynton Cell Phone Allowance 30.0006/30/2022 030-0370-55500-00 Nichols Diesel Service, Inc.State & Fed Tests - Unit 1108 41.0006/30/2022 030-0370-55500-00 Cummins Sale & Service Repair work for 1107 3,720.97 000009222007/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 12 Account Number Vendor AmountDescription PO No Date 030-0370-55700-00 First Glass, Inc.Window glass replacement 955.0007/11/2022 030-0370-55700-00 Galesburg Termite & Pest Control Inc Semi monthly service 45.0007/11/2022 030-0370-57500-00 Cintas, Inc 06/22 Service 68.4606/30/2022 030-0370-57500-00 Cintas, Inc 07/22 Service 165.9607/11/2022 030-0370-62500-00 Gillig Fan control kit 692.0006/30/2022 030-0370-62500-00 Cummins Sale & Service Credit of sales tax previously charged -63.0006/28/2022 030-0370-62500-00 Gillig Coolant 212.0606/30/2022 030-0370-62500-00 Cummins Sale & Service Repair parts for 1107 7,512.51 000009222007/11/2022 030-0370-62500-00 Cummins Sale & Service Credit of sales tax previously charged -45.0006/28/2022 030-0370-62510-00 Herr Petroleum Corp 452.6 Gal diesel #2 2,373.17 000009210106/30/2022 030-0370-62510-00 Herr Petroleum Corp 348.4 Gal diesel #2 1,805.07 000009210106/30/2022 030-0370-62510-00 Herr Petroleum Corp 246.6 Gal diesel #2 1,277.64 000009210106/30/2022 030-0370-66500-00 Martin, Inc U-bolt, trunnion, nuts 55.6906/30/2022 030-0370-66500-00 Napa Auto Parts Wet dry vac, saw, saw blade 234.4806/30/2022 22,801.04Subtotal for Divison: 0370 Subtotal for Fund 030 33,807.28 049-0000-51000-00 Baker Tilly US, LLP 2021 Fiscal Year Audit 360.00 000009219107/11/2022 049-0000-51000-00 Klingner & Associates, P.C. - Architectural Group140-144 E Main St: Demolition, Survey, Architectural, Bidding 932.25 000009219507/11/2022 049-0000-55700-00 Hein Construction Co, Inc 120 E Main St Storage Area 14,745.00 000009216007/11/2022 049-0000-83100-00 GPP Holdings, LLC TIF Incentive for Facade Improvements for 56 S Kellogg 4,372.7407/11/2022 20,409.99Subtotal for Divison: 0000 Subtotal for Fund 049 20,409.99 054-0000-51000-00 Klingner & Associates, P.C. - Architectural GroupProfessional services for HVAC replacement in PSB, 150 S Broad 1,792.00 000009220607/11/2022 054-0000-63500-00 Timanda Landscaping & Garden Center Royal red maple tree 179.9507/11/2022 054-0000-63500-00 Timanda Landscaping & Garden Center Snowdance lilac 179.9507/11/2022 2,151.90Subtotal for Divison: 0000 Subtotal for Fund 054 2,151.90 056-0000-51000-00 Baker Tilly US, LLP 2021 Fiscal Year Audit 360.00 000009219107/11/2022 360.00Subtotal for Divison: 0000 Subtotal for Fund 056 360.00 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 13 Account Number Vendor AmountDescription PO No Date 061-0000-10701-00 IL Rural Water Assn.01/23 - 06/23 Supporting Membership 261.5007/11/2022 061-0000-10701-00 IL Environmental Protection Agency 01/23 - 06/23 Annual NPDES Fee #ILG640273 (A) 250.0007/11/2022 061-0000-15401-00 Gunther Construction Co., a div. of UCM, IncWest Street Reconstruction - Water Main Portion 17,812.09 000009219307/11/2022 061-0000-20101-00 KENDRA BOLEN Refund Check 053768-000, 1187 SWEETBRIAR PL 34.7007/01/2022 061-0000-20101-00 ASENCION DURAN Refund Check 048639-001, 333 MAPLE AVE 59.9807/01/2022 061-0000-20101-00 MARY DURHAM Refund Check 047958-000, 45 PARK LANE DR 17.8307/01/2022 061-0000-20101-00 HAASE PROPERTY MANAGEMENT LLCRefund Check 062514-000, 566 E THIRD ST 1.6507/01/2022 061-0000-20101-00 HOPE ERVIN Refund Check 064464-000, 1411 E FIFTH ST 21 39.8107/01/2022 061-0000-20101-00 AMBER JORDAN Refund Check 057623-000, 651 FLORENCE AVE 95.8107/01/2022 061-0000-20101-00 SUSIE CHANDLER Refund Check 019537-002, 858 S PEARL ST 93.0507/01/2022 061-0000-20101-00 TAYLOR HOUCK Refund Check 063493-000, 967 N KELLOGG ST 87.7007/01/2022 061-0000-20101-00 SKYLER GERLING Refund Check 064677-000, 1222 GARDEN LN 33.5007/01/2022 061-0000-20101-00 HAASE PROPERTY MANAGEMENT LLCRefund Check 062514-000, 566 E THIRD ST 105.6407/01/2022 061-0000-20101-00 PAULETTE EARP Refund Check 058226-001, 1190 SWEETBRIAR PL 57.9407/01/2022 061-0000-20101-00 SAMANTHA KNAPP Refund Check 055996-000, 1554 MCKNIGHT ST 14.4507/01/2022 061-0000-20101-00 MICHAEL LITTLEFIELD Refund Check 007527-001, 247 W FREMONT ST 81.4907/01/2022 061-0000-20101-00 JESSICA MYERS Refund Check 055060-001, 448 IOWA AVE 811.8207/01/2022 061-0000-20101-00 STEPHANIE VOYLES Refund Check 053945-001, 127 N PLEASANT AVE 68.2307/01/2022 061-0000-20101-00 HEATHER KISLER Refund Check 056901-000, 605 KNOLLCREST DR 14.3107/01/2022 061-0000-20101-00 SARAH SPARGO Refund Check 056728-000, 984 N CHERRY ST 41.1207/01/2022 061-0000-20101-00 DALE STACKHOUSE Refund Check 061243-001, 535 ARNOLD ST 48.1107/01/2022 061-0000-20101-00 JESSICA MYERS Refund Check 055060-001, 448 IOWA AVE 1.1007/01/2022 061-0000-20101-00 THOMAS MCINTIRE Refund Check 045835-000, 44 E MARY ST 21.4107/01/2022 061-0000-20102-00 Stratus Networks, Inc 07/22 Service 127.2307/11/2022 061-0000-51000-00 Knox County Recorders Office 06/22 Laredo 20.7007/11/2022 061-0000-51000-00 SpringbrookSoftware LLC 06/22 CivicPay PayPad Transaction Fee 143.5007/11/2022 061-0000-51010-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 858.0007/11/2022 061-0000-52300-00 Ameren Illinois 06/22 Heat #1017455691 90.8606/30/2022 061-0000-54000-00 Jerami Brown Cell Phone Allowance 30.0006/30/2022 061-0000-54000-00 Timothy Fey Cell Phone Allowance 30.0006/30/2022 061-0000-54000-00 Mark Schwieter Cell Phone Allowance 30.0006/30/2022 061-0000-54000-00 Michael Mackey Cell Phone Allowance 30.0006/30/2022 061-0000-54000-00 Shelby Schwieter Cell Phone Allowance 30.0006/30/2022 061-0000-55000-00 IL Rural Water Assn.07/22 - 12/22 Supporting Membership 261.5007/11/2022 061-0000-55000-00 IL Environmental Protection Agency 07/22 - 12/22 Annual NPDES Fee #ILG640273 (A) 250.0007/11/2022 061-0000-55700-00 AMP Electrical Services, Inc.Routing new water line 512.1207/11/2022 061-0000-55700-00 Four Seasons Pest Control 06/22 Service 30.0007/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 14 Account Number Vendor AmountDescription PO No Date 061-0000-55700-00 Four Seasons Pest Control 06/22 Service 55.0007/11/2022 061-0000-55700-00 Waste Management, Inc.07/22 Service 18.2307/11/2022 061-0000-55700-00 Royal Cleaning Services 07/22 Janitorial services 464.0007/11/2022 061-0000-55700-00 Waste Management, Inc.07/22 Service 101.9907/11/2022 061-0000-59300-00 UniFirst First Aid Corp First aid supplies 108.9007/11/2022 061-0000-62510-00 Herr Petroleum Corp 187.8 Gal diesel #2 972.08 000009209907/11/2022 061-0000-65500-00 Flowpoint Environmental Systems Inc Bermad reed switch 195.3107/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc CONTROLLED LOW STRENGTH MATERIAL (CLSM) - DELIVERED 221.79 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc PORTLAND CEMENT CONCRETE, CL PP2 MIX - DELIVERED 252.00 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc PORTLAND CEMENT CONCRETE, CL PP2 MIX - DELIVERED 222.50 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc CONTROLLED LOW STRENGTH MATERIAL (CLSM) - DELIVERED 480.55 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc PORTLAND CEMENT CONCRETE, CL PP1 MIX - DELIVERED 188.50 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc CONTROLLED LOW STRENGTH MATERIAL (CLSM) - DELIVERED 221.79 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc CONTROLLED LOW STRENGTH MATERIAL (CLSM) - DELIVERED 325.00 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc CONTROLLED LOW STRENGTH MATERIAL (CLSM) - DELIVERED 227.50 000009211307/11/2022 061-0000-66000-00 Galesburg Builders Supply, Inc.4.04 Ton premier cold mix 571.6607/11/2022 061-0000-66000-00 Lawson Products, Inc.Connectors 156.7007/11/2022 061-0000-66000-00 Sherwin Williams Co.Paint 426.7607/11/2022 27,707.41Subtotal for Divison: 0000 Subtotal for Fund 061 27,707.41 067-0000-10701-00 Waste Management, Inc.30 Oversize stickers 570.0007/11/2022 067-0000-20101-00 JESSICA MYERS Refund Check 055060-001, 448 IOWA AVE 1.5107/01/2022 067-0000-20101-00 HAASE PROPERTY MANAGEMENT LLCRefund Check 062514-000, 566 E THIRD ST 2.2707/01/2022 067-0000-51000-00 SpringbrookSoftware LLC 06/22 CivicPay PayPad Transaction Fee 71.7507/11/2022 067-0000-51000-00 Knox County Recorders Office 06/22 Laredo 20.7007/11/2022 067-0000-51000-00 Baker Tilly US, LLP 2021 Fiscal Year Audit 3,935.00 000009219107/11/2022 4,601.23Subtotal for Divison: 0000 Subtotal for Fund 067 4,601.23 078-0000-56535-00 Azer Clinic Work Comp DOS 06/16/2022 #ZACPAR 105.2207/11/2022 078-0000-56535-00 Azer Clinic Work Comp DOS 06/17/2022 #ZACPAR 105.2207/11/2022 078-0000-56535-00 Azer Clinic Work Comp DOS 06/23/2022 #ZACPAR 105.2207/11/2022 078-0000-56535-00 Heritage Medical Equipment and Supplies Work Comp DOS 06/19/2022 #69264 31.9207/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 66.0007/11/2022 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 15 Account Number Vendor AmountDescription PO No Date 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 504.5607/11/2022 078-0000-56535-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 594.0007/11/2022 078-0000-56535-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 478.5007/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 148.5007/11/2022 078-0000-56535-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 825.0007/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 148.5007/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 49.5007/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 49.5007/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 148.5007/11/2022 078-0000-56535-00 James M Kelly, Attorney 03/22 & 04/22 Legal Services 615.2807/11/2022 078-0000-56535-00 James M Kelly, Attorney 04/22 Legal Services 132.0007/11/2022 4,107.42Subtotal for Divison: 0000 Subtotal for Fund 078 4,107.42 091-0000-20102-00 Galesburg Sanitary Dist.07/22 Sanitary Dist fees less 06/22 credit card processing fees -2,257.1907/11/2022 091-0000-20102-00 Galesburg Sanitary Dist.07/22 Sanitary District fees less 05/22 postage for liens -2.0207/11/2022 091-0000-20102-00 Galesburg Sanitary Dist.07/22 Sanitary District fees less 05/22 lien & collection fees -27.2307/11/2022 091-0000-20102-00 Galesburg Sanitary Dist.07/22 Sanitary District fees less 3% collection fee -16,682.5907/11/2022 091-0000-22003-00 Galesburg Sanitary Dist.07/22 Sanitary District fees 556,086.4407/11/2022 537,117.41Subtotal for Divison: 0000 Subtotal for Fund 091 537,117.41 Report Total: 2,000,852.72 AP-Transactions by Account (07/11/2022 - 4:41 PM)Page 16 Check Date Check #Vendor Name Description Account #Amount 6/29/2022 0 James Hartshorn Officiating volleyball - 2 games 019-1940-51400 50.00 6/29/2022 0 Mike Hines Officiating volleyball - 2 games 019-1940-51400 50.00 6/30/2022 0 Chuck Humes Umpire Softball - 3 games 019-1940-51400 105.00 6/30/2022 0 Mike Hines Officiate Volleyball - 1 game 019-1940-51400 25.00 6/30/2022 0 Melissa Pettit Head Coach for Summer Swim Team - 1st installment 019-1940-51400 1,000.00 6/30/2022 0 Dan Burgland Umpire Softball - 3 games 019-1940-51400 105.00 6/30/2022 0 Quadient Leasing USA, Inc Postage for machine 061-0000-10702 500.00 6/30/2022 0 Computershare GO1011C Interest Bond Payment 046-0000-87300 21,740.00 6/30/2022 0 Computershare GO2013A Interest Bond Payment 047-0000-87300 13,620.00 6/30/2022 0 Euclid Beverage Liquor for Golf Concessions 019-1920-64125 293.50 6/30/2022 0 G & M Distributors Liquor for Golf Concessions 019-1920-64125 434.70 6/30/2022 0 Bluefin Payment Systems 05/22 UB Webpayment credit card processing fee adjustment 061-0000-51000 36.61 6/30/2022 0 Haley Stevenson Meals - Week 9 Basic Firefighter - Champaign, IL - H Stevenson 001-0000-10706 155.00 6/30/2022 0 Bluefin Payment Systems 05/22 UB Webpayment credit card processing fee adjustment 067-0000-51000 18.31 6/30/2022 0 Breakthru Beverage Illinois, LLC Liquor for Golf Concessions 019-1920-64125 114.00 6/30/2022 6051 J W Summy Contracting Corp.HUD Healthy Homes at 938 Maple Ave 013-0000-83100 4,250.00 6/30/2022 96664 Sangamon County Sheriff's Office Service of Summons - ITRIA Ventures - 29 Public Sq demo 001-0145-51000 50.00 6/30/2022 96663 Knox County Recorders Office Recording/Lis pendens - 29 Public Sq demo 001-0160-51300 63.00 6/30/2022 96662 Douglas County Sheriff's Office Service of Summons - Umpqua Bank - 29 Public Sq demo 001-0145-51000 50.00 6/30/2022 96665 Nathaniel P Tracy Impound fee refund 001-0000-32015 500.00 6/30/2022 5095 J W Summy Contracting Corp.HUD LBPHC at 938 Maple Ave 013-0000-83100 17,950.00 6/30/2022 5095 J W Summy Contracting Corp.CO #1 HUD LBPHC at 938 Maple Ave additional window replacement 013-0000-83100 750.00 7/1/2022 0 Drew Rogers Non safety toe boots 001-0605-67500 77.00 7/5/2022 0 James Hartshorn Officiate Volleyball - 3 games 019-1940-51400 75.00 7/5/2022 0 Dan Burgland Umpire Softball - 1 additional game 019-1940-51400 35.00 7/5/2022 0 Mike Hines Officiate Volleyball - 2 games 019-1940-51400 50.00 7/6/2022 0 Bank of Montreal Hampton Inn - REID Investigation Training - J Carpenter 001-0510-54500 106.27 7/6/2022 0 Bank of Montreal Birkeys - fuel filter #126 001-0450-62500 58.75 7/6/2022 0 Bank of Montreal Oreilly Auto Parts - stethescope 061-0000-66500 11.99 7/6/2022 0 Bank of Montreal Thompson - crankcase, filter system breather 030-0370-62500 322.42 7/6/2022 0 Bank of Montreal Infotech - Appia software - N Peterson 001-0410-55800 2,000.00 7/6/2022 0 Bank of Montreal Soangetaha Country Club - T Thompson & dept heads lunch 001-0110-54500 163.11 7/6/2022 0 Bank of Montreal Valley Distribution - core credit 001-0445-55500 (140.40) 7/6/2022 0 Bank of Montreal Illinois Bassett - Bassett Certification - M Young 019-1920-54500 13.95 7/6/2022 0 Bank of Montreal USPS - postage 019-1920-53000 12.45 7/6/2022 0 Bank of Montreal Menards - rain suit - Ryan 001-0450-67500 29.99 7/6/2022 0 Bank of Montreal Galesburg Electric - light bulb recycling 061-0000-66000 14.40 Advance Checks and ACH Payments as of 7/11/2022 7/6/2022 0 Bank of Montreal Amazon - thank you cards 001-0120-61000 19.98 7/6/2022 0 Bank of Montreal Facebook - police recruitment advertising 001-0505-51500 50.00 7/6/2022 0 Bank of Montreal Amazon - plates, forks, letter opener 001-0510-61000 165.54 7/6/2022 0 Bank of Montreal Menards - ball valves 019-1920-66000 101.95 7/6/2022 0 Bank of Montreal Hy Vee - food for crew - Fishing Derby 019-1915-68000 52.93 7/6/2022 0 Bank of Montreal Farm King - wood pellets 001-0605-65500 10.99 7/6/2022 0 Bank of Montreal EMP - misc medical supplies 001-0605-68600 78.45 7/6/2022 0 Bank of Montreal Cooks & Co - funeral arrangement - Olmsted 001-0605-58500 50.00 7/6/2022 0 Bank of Montreal Menards - cement for ballfields 019-1915-66000 45.48 7/6/2022 0 Bank of Montreal Hy Vee - donuts for staff training day 019-1940-64000 52.03 7/6/2022 0 Bank of Montreal Farm King - 4 trees 019-1920-66000 419.96 7/6/2022 0 Bank of Montreal Menards - paint remover 019-1915-65500 55.96 7/6/2022 0 Bank of Montreal Matco - extension 001-0445-66500 76.95 7/6/2022 0 Bank of Montreal Lock & Key Shop - key for Ryan 001-0450-61000 10.00 7/6/2022 0 Bank of Montreal Menards - pop-up canopy for golf outings 019-1920-66500 202.33 7/6/2022 0 Bank of Montreal FlashlightDealer.com - e-spot lite box 001-0605-66500 154.50 7/6/2022 0 Bank of Montreal Vistaprint - business cards - E Varner 019-1905-51500 44.34 7/6/2022 0 Bank of Montreal Illinois Bassett - Bassett Certification - D Hepner 019-1920-54500 13.95 7/6/2022 0 Bank of Montreal Lowes - pressure washer 019-1950-66500 169.00 7/6/2022 0 Bank of Montreal Lowes - pvc tubing, pliers 019-1950-66000 55.52 7/6/2022 0 Bank of Montreal Day Break - diesel for mowers and tractor 061-0000-62510 428.96 7/6/2022 0 Bank of Montreal EMP - misc medical supplies 001-0605-68600 343.94 7/6/2022 0 Bank of Montreal Amazon - bean bags, misc supplies 019-1940-64000 71.91 7/6/2022 0 Bank of Montreal Exxon Mobil - gas for conference in Chicago 001-0510-54500 65.52 7/6/2022 0 Bank of Montreal Office Specialists - 05/22 Service 001-0000-20102 2,436.14 7/6/2022 0 Bank of Montreal AC McCartney - mower belts and blades 019-1915-65500 917.70 7/6/2022 0 Bank of Montreal Green View Garden Center - trees 019-1975-63500 2,492.88 7/6/2022 0 Bank of Montreal Efood Card - Food Certificate - B Kisler 019-1920-54500 7.99 7/6/2022 0 Bank of Montreal Menards - utility lighter 061-0000-66500 3.19 7/6/2022 0 Bank of Montreal Office Specialists - 05/22 Service 078-0000-20102 54.83 7/6/2022 0 Bank of Montreal Comcast - 05/22 Cable 001-0630-54000 17.00 7/6/2022 0 Bank of Montreal Menards - shovels 001-0410-66500 75.98 7/6/2022 0 Bank of Montreal AC McCartney - belt #175 001-0445-62500 14.79 7/6/2022 0 Bank of Montreal Illinois Bassett - Bassett Certification - A Breslin 019-1920-54500 13.95 7/6/2022 0 Bank of Montreal Tractor Supply - rolling wheel 014-0000-64500 39.99 7/6/2022 0 Bank of Montreal USPS - mailing medals from I-74 019-1940-51400 12.80 7/6/2022 0 Bank of Montreal Menards - pvc cleaner, cement, pipe 019-1915-65500 18.72 7/6/2022 0 Bank of Montreal Yatoshi Knives - knives for Brooks 22-21 021-0000-66500 159.99 7/6/2022 0 Bank of Montreal Inquirehire - background check - T Nelson 078-0000-51000 58.00 7/6/2022 0 Bank of Montreal People's - bolts to repair stand at Central 001-0605-65500 1.68 7/6/2022 0 Bank of Montreal Webber Rental - gator float brackets, bull float bracket 001-0450-66500 267.03 7/6/2022 0 Bank of Montreal Amazon - cording supplies 019-1940-64000 29.60 7/6/2022 0 Bank of Montreal Menards - ceiling tile 019-1910-66000 98.80 7/6/2022 0 Bank of Montreal US Cellular - 04/22 Service 019-0000-20102 69.56 7/6/2022 0 Bank of Montreal Menards - hex washers 030-0370-65500 5.69 7/6/2022 0 Bank of Montreal Verizon Wireless - 04/22 Service 019-0000-20102 361.95 7/6/2022 0 Bank of Montreal Cooks & Co - funeral arrangement - Wilkins 001-0605-58500 50.00 7/6/2022 0 Bank of Montreal Amazon - sanitizer test strips 019-1940-64125 19.70 7/6/2022 0 Bank of Montreal Scott Equipment - weedeater line 019-1965-65500 211.96 7/6/2022 0 Bank of Montreal Office Specialists - credit for banners incorrectly charged 030-0000-10407 (1,304.03) 7/6/2022 0 Bank of Montreal Menards - concrete screw anchors 061-0000-66000 28.76 7/6/2022 0 Bank of Montreal Verizon Wireless - 04/22 Service 016-0000-20102 1.86 7/6/2022 0 Bank of Montreal Farm King - couplers, shut-off valve 001-0450-65500 85.85 7/6/2022 0 Bank of Montreal 05/22 CC Charges - ETSB 001-0000-10407 570.12 7/6/2022 0 Bank of Montreal Amazon - lithium batteries 001-0510-65500 32.64 7/6/2022 0 Bank of Montreal Holt Supply - misc plumbing repair materials 019-1950-66000 130.90 7/6/2022 0 Bank of Montreal S & S Industrial Supply - brake cleaner, workhorse, oil pads 001-0445-63000 177.30 7/6/2022 0 Bank of Montreal Interstate Batteries - batteries for barricades 014-0000-64500 396.00 7/6/2022 0 Bank of Montreal Drury Hotel - Rifle Training - Carr, Tapscott 001-0510-54500 655.91 7/6/2022 0 Bank of Montreal Birkeys - nozzles #126 001-0450-62500 282.72 7/6/2022 0 Bank of Montreal Menards - shades 019-1920-66000 13.48 7/6/2022 0 Bank of Montreal US Cellular - 04/22 Service 001-0000-20102 34.78 7/6/2022 0 Bank of Montreal Lowes - mulch 019-1930-63500 120.00 7/6/2022 0 Bank of Montreal Pekin Ins - 06/22 Life Insurance Premiums 001-0510-47500 108.90 7/6/2022 0 Bank of Montreal Lowes - yard stick for grass measurements 001-0306-66500 5.98 7/6/2022 0 Bank of Montreal USA Bluebook - multi-gas detector battery kit 061-0000-65500 75.95 7/6/2022 0 Bank of Montreal Lowes - sales tax to be refunded 001-0000-10407 0.52 7/6/2022 0 Bank of Montreal Neals Auto Parts - steering gear #400 001-0306-62500 777.00 7/6/2022 0 Bank of Montreal Mitchell - ford repair software 030-0320-55500 1,762.56 7/6/2022 0 Bank of Montreal Amazon - power cord for sound system at LSWP 019-1940-64000 5.94 7/6/2022 0 Bank of Montreal Menards - food safe pails for ice 019-1945-66000 15.96 7/6/2022 0 Bank of Montreal Menards - wasp spray, lubricant spray 019-1911-66000 26.39 7/6/2022 0 Bank of Montreal Acushnet - golf balls for resale 019-1920-64000 44.22 7/6/2022 0 Bank of Montreal Yatoshi Knives - discount given on knives for Brooks 22-21 021-0000-66500 (32.00) 7/6/2022 0 Bank of Montreal Menards - weed spray 061-0000-63500 56.98 7/6/2022 0 Bank of Montreal Amazon - balloons for tennis 019-1940-64000 8.99 7/6/2022 0 Bank of Montreal Gatehouse Media - Notice to Bidders #20710 023-0000-51500 131.38 7/6/2022 0 Bank of Montreal Pekin Ins - 06/22 Life Insurance Premiums 001-0605-47500 118.80 7/6/2022 0 Bank of Montreal Lowes - tool box bottom 001-0450-66500 948.00 7/6/2022 0 Bank of Montreal Sherwin Williams - paint for Lakeside WP bathrooms 019-1950-66000 345.25 7/6/2022 0 Bank of Montreal Amazon - fishing derby prizes 019-1940-64000 9.99 7/6/2022 0 Bank of Montreal Hy Vee - hot dog buns 019-1920-64125 30.49 7/6/2022 0 Bank of Montreal Hy Vee - drinks for training 001-0605-68000 13.94 7/6/2022 0 Bank of Montreal Grainger - brass repair kit, metering cartridges 019-1950-66000 519.00 7/6/2022 0 Bank of Montreal FreshDesk - 05/22 - 12/22 annual renewal 001-0207-55800 551.30 7/6/2022 0 Bank of Montreal AWWA - 01/23 - 06/23 membership - M Schwieter 061-0000-10701 42.50 7/6/2022 0 Bank of Montreal People's - gas blower 030-0370-66500 189.99 7/6/2022 0 Bank of Montreal United Rentals - man lift rental 061-0000-56000 510.00 7/6/2022 0 Bank of Montreal Verizon Wireless - 04/22 Service 061-0000-20102 126.26 7/6/2022 0 Bank of Montreal Gatehouse Media - Notice to Bidders #20710 001-0160-51500 137.74 7/6/2022 0 Bank of Montreal Real Truck - tube steps #116 001-0450-62500 149.49 7/6/2022 0 Bank of Montreal MTC Communications - WTP internet 061-0000-54000 89.95 7/6/2022 0 Bank of Montreal Forestry Suppliers - 13' level rod 001-0410-64800 125.03 7/6/2022 0 Bank of Montreal USPS - stamps 030-0370-53000 34.80 7/6/2022 0 Bank of Montreal Lowes - mulch 019-1930-63500 480.00 7/6/2022 0 Bank of Montreal Menards - power strip 019-1920-65500 30.45 7/6/2022 0 Bank of Montreal Amazon - wall clock, coin counter, computer risers 030-0370-61500 294.67 7/6/2022 0 Bank of Montreal Farm King - roundup 001-0445-63000 95.99 7/6/2022 0 Bank of Montreal Jack Links - beef sticks 019-1920-64125 73.98 7/6/2022 0 Bank of Montreal IL Fire & Police Comm - current ACT booklet, commissioner manual 001-0505-67000 122.00 7/6/2022 0 Bank of Montreal Lowes - lumber for forms 014-0000-66000 49.94 7/6/2022 0 Bank of Montreal Advance Auto Parts - brake cleaner 001-0450-65500 46.04 7/6/2022 0 Bank of Montreal State Journal Advertising - public legal notice for rules change 001-0505-51500 51.88 7/6/2022 0 Bank of Montreal Facebook - police recruitment advertising 001-0505-51500 25.00 7/6/2022 0 Bank of Montreal Efood Card - Food Certificate - C Barman 019-1920-54500 7.99 7/6/2022 0 Bank of Montreal Amazon - lithium batteries 001-0510-65500 70.99 7/6/2022 0 Bank of Montreal EMP - misc medical supplies 001-0605-68600 93.40 7/6/2022 0 Bank of Montreal Menards - planting materials for Lake Storey trees 054-0000-63500 99.17 7/6/2022 0 Bank of Montreal USA Bluebook - hydrant oil 061-0000-66000 184.51 7/6/2022 0 Bank of Montreal Lowes - LED under cabinet lighting 22-10 021-0000-66000 109.94 7/6/2022 0 Bank of Montreal Eastern IL University - IMTA Conference - G Osborn 001-0205-54500 175.00 7/6/2022 0 Bank of Montreal Peoples - gloves, ear plugs 001-0605-67500 16.28 7/6/2022 0 Bank of Montreal Menards - fuel tank for new gas blower 030-0370-65500 19.96 7/6/2022 0 Bank of Montreal Menards - duct seal for AC unit 001-0450-66000 13.98 7/6/2022 0 Bank of Montreal Harbor Freight - wrenches for hydrant testing 001-0605-65500 39.97 7/6/2022 0 Bank of Montreal USPS - mailing medals from I-74 019-1940-51400 9.65 7/6/2022 0 Bank of Montreal Amazon - dog leashes for CSO officers 001-0510-67500 32.67 7/6/2022 0 Bank of Montreal Anixter - CCH-CP12-A9-PO2 / Splice tray - Hawthorne fiber proj 021-0000-61700 569.70 7/6/2022 0 Bank of Montreal AC McCartney - u joint #523 019-1915-62500 102.79 7/6/2022 0 Bank of Montreal Amazon - replacement tv for Brooks 22-20 021-0000-61800 446.99 7/6/2022 0 Bank of Montreal Frontier Communications - WTP phone and internet 061-0000-54000 328.76 7/6/2022 0 Bank of Montreal Comcast - 05/22 Internet 019-1965-54000 62.95 7/6/2022 0 Bank of Montreal Menards - acid brush, paint remover, paint brush 019-1915-65500 24.88 7/6/2022 0 Bank of Montreal Illinois Bassett - Bassett Certification - K Smith 019-1920-54500 13.95 7/6/2022 0 Bank of Montreal Wilson Paper - car wash soap 001-0445-63000 64.87 7/6/2022 0 Bank of Montreal Anixter - LC-LC singlemode 4M zipcord riser - Hawthorne fiber 021-0000-61700 17.48 7/6/2022 0 Bank of Montreal Certified MTP - 250 4x8 concrete test cylinders 001-0410-64800 489.21 7/6/2022 0 Bank of Montreal Harbor Freight Tools - rake, shovel 019-1965-66500 32.98 7/6/2022 0 Bank of Montreal Amazon - correction tape 019-1905-61000 11.01 7/6/2022 0 Bank of Montreal Peoples - weed killer, mouse traps 001-0605-66000 71.57 7/6/2022 0 Bank of Montreal Quickscores - softball schedule 019-1940-51400 77.00 7/6/2022 0 Bank of Montreal Menards - survey spike nails 001-0410-64800 19.95 7/6/2022 0 Bank of Montreal Lowes - pruners 019-1915-66500 20.46 7/6/2022 0 Bank of Montreal Thompson - coolant para 030-0320-62500 524.00 7/6/2022 0 Bank of Montreal Amazon - high visibility jacket - Z Cox 001-0510-67500 67.80 7/6/2022 0 Bank of Montreal Lowes - pvc pipe 019-1945-66000 10.59 7/6/2022 0 Bank of Montreal Galesburg Electric - cutter wheel 061-0000-66500 7.48 7/6/2022 0 Bank of Montreal AT&T - wireless connection for squad 001-0510-54000 36.24 7/6/2022 0 Bank of Montreal Anixter - 6 ea Extreme Networks MGBIC-BX20U - Hawthorne fiber 021-0000-61700 141.88 7/6/2022 0 Bank of Montreal Comcast - 05/22 Cable 001-0510-54000 19.90 7/6/2022 0 Bank of Montreal Go Van Goghs - embroidery for staff shirts 001-0205-51000 30.00 7/6/2022 0 Bank of Montreal Menards - pvc cap 019-1915-65500 9.99 7/6/2022 0 Bank of Montreal Menards - power broom 019-1950-66500 67.99 7/6/2022 0 Bank of Montreal Amazon - cording supplies 019-1950-64000 28.46 7/6/2022 0 Bank of Montreal USA Bluebook - hydrant oil 061-0000-66000 55.95 7/6/2022 0 Bank of Montreal Connor Co - tool repair 061-0000-55500 151.00 7/6/2022 0 Bank of Montreal AC McCartney - filter cover, fan, dust cover #175 001-0445-62500 212.06 7/6/2022 0 Bank of Montreal Walmart - bags for medical supplies 001-0605-68600 8.22 7/6/2022 0 Bank of Montreal Amazon - sanitizer test strips 019-1950-64125 17.68 7/6/2022 0 Bank of Montreal Wilson Paper - car wash soap 001-0445-63000 64.87 7/6/2022 0 Bank of Montreal Moores Electronic - golf camera repair 019-1920-55800 500.00 7/6/2022 0 Bank of Montreal Peoples - shop towels 001-0605-65500 17.24 7/6/2022 0 Bank of Montreal AC McCartney - side cover #175 001-0445-62500 966.50 7/6/2022 0 Bank of Montreal Lowes - mulch 019-1930-63500 120.00 7/6/2022 0 Bank of Montreal Hy Vee - paper plates 001-0510-61000 23.97 7/6/2022 0 Bank of Montreal Menards - household batteries, laundry detergent 061-0000-66000 43.68 7/6/2022 0 Bank of Montreal Efood Card - Food Certificate - K Brennan 019-1920-54500 7.99 7/6/2022 0 Bank of Montreal Lowes - planting materials for trees - 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refund - award certificate paper 001-0115-61000 (65.20) 7/6/2022 0 Bank of Montreal First Glass - car window glass repair 078-0000-56534 255.34 7/6/2022 0 Bank of Montreal Lowes - hot water heater 061-0000-66000 448.97 7/6/2022 0 Bank of Montreal USA Bluebook - lab supplies 061-0000-68500 709.37 7/6/2022 0 Bank of Montreal Amazon - name plate - E Varner 019-1905-61000 11.48 7/6/2022 0 Bank of Montreal Menards - cable cutters, pinch pliers 019-1920-66500 39.97 7/6/2022 0 Bank of Montreal Menards - parts for heater 061-0000-66000 16.58 7/6/2022 0 Bank of Montreal Amazon - scarves for tennis programs 019-1940-64000 34.23 7/6/2022 0 Bank of Montreal Office Specialists - 05/22 Service 030-0000-20102 100.52 7/6/2022 0 Bank of Montreal DynDNS.com - managed DNS Express 5 renewal - 1 month 001-0207-55800 24.00 7/6/2022 0 Bank of Montreal Sherwin Williams - paint for Central garage door 001-0605-66000 78.63 7/6/2022 0 Bank of Montreal Comcast - 05/22 Internet - Kerzi 001-0207-54000 454.85 7/6/2022 0 Bank of Montreal Lowes - 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shop tools 030-0370-66500 299.06 7/6/2022 0 Bank of Montreal Hy Vee - reception for T Thompson 001-0105-58500 70.79 7/6/2022 0 Bank of Montreal Valley Distribution - engine oil 001-0000-10801 823.10 7/6/2022 0 Bank of Montreal VistaPrint - PGA signage 019-1920-66000 31.59 7/6/2022 0 Bank of Montreal Verizon Wireless - 04/22 Service 001-0000-20102 1,488.63 7/6/2022 0 Bank of Montreal CDWg - microsoft wireless keyboard replacement - Kenzie CRP 057-0000-61700 22.14 7/6/2022 0 Bank of Montreal Midstate - filter cleaning #520 019-1915-55500 6.00 7/6/2022 0 Bank of Montreal Menards - heavy duty hose 019-1915-66500 22.46 7/6/2022 0 Bank of Montreal TLO Trans Union - TLO Program subscription 001-0510-55800 75.00 7/6/2022 0 Bank of Montreal Amazon - Sirchmark evidence tape 001-0510-66500 96.49 7/6/2022 0 Bank of Montreal Birkeys - filter pack #126 001-0450-62500 1,259.19 7/6/2022 0 Bank of Montreal Farm King - refund for 25% discount donation 019-1940-64000 (56.70) 7/6/2022 0 Bank of Montreal DynDNS.com - DYN standard DNS renewal - 1 month 001-0207-55800 5.00 7/6/2022 0 Bank of Montreal Carl Sandburg College - food manager certification - C Oxley 019-1940-54500 145.00 7/6/2022 0 Bank of Montreal AC McCartney - plug #159 001-0445-62500 25.34 7/7/2022 0 Cardconnect 06/22 Card Connect Credit Card Charges 019-1925-51000 578.70 7/7/2022 0 Bluefin Payment Systems 06/22 Pay Pad Processing Fees 061-0000-51000 828.28 7/7/2022 96727 Calvary Baptist Church 2 Month Lease - 518 W South St 018-0000-88300 1,500.00 7/7/2022 0 G & M Distributors Liquor for Golf Concessions 019-1920-64125 489.00 7/7/2022 0 Bluefin Payment Systems 06/22 Pay Pad Processing Fees 067-0000-51000 414.15 7/7/2022 96728 Knox County Recorders Office Release 9 Property Maint Liens 001-0160-51300 75.00 7/7/2022 0 James Hartshorn Officiate Volleyball - 2 games 019-1940-51400 50.00 7/7/2022 0 Farmers & Mechanics Bank 06/22 F&M Bank Trust Fees 026-0000-51000 41.41 7/7/2022 0 Wells Fargo Merchant Services 06/22 Credit Card Fees 019-1920-51000 2,563.79 7/7/2022 0 Bluefin Payment Systems 06/22 Pay Pad Processing Fees 001-0115-51000 175.98 7/7/2022 0 Farmers & Mechanics Bank 06/22 F&M Bank Trust Fees 001-0205-51000 329.57 7/7/2022 0 Cardconnect 06/22 Card Connect Credit Card Charges 019-1945-51000 64.14 7/7/2022 0 G & M Distributors Bloody Mary Mix 019-1920-64125 45.00 7/7/2022 20081 ABG Enterprise, Inc.DCEO HELP Pilot at 253 W Water 013-0000-83100 17,675.00 7/7/2022 0 Euclid Beverage Liquor for Golf Concessions 019-1920-64125 298.20 7/7/2022 20081 ABG Enterprise, Inc.CO #1 DCEO HELP Pilot at 253 W Water for grass seed 013-0000-83100 350.00 7/7/2022 0 Haley Stevenson Meals - Week 10 Basic Firefighter - Champaign, IL - H Stevenson 001-0000-10706 155.00 7/7/2022 0 Cardconnect 06/22 Card Connect Credit Card Charges 019-1930-51000 85.16 7/7/2022 0 Cardconnect 06/22 Card Connect Credit Card Charges 019-1935-51000 59.48 7/7/2022 0 Farmers & Mechanics Bank 06/22 F&M Bank Trust Fees 058-0000-51000 123.93 7/7/2022 0 Quadient Leasing USA, Inc Postage for machine 061-0000-10702 100.00 7/7/2022 0 Mike Hines Officiate Volleyball - 3 games 019-1940-51400 75.00 7/7/2022 0 Bluefin Payment Systems 06/22 EB Webpayment Credit Card Processing Fee 061-0000-51000 2,790.91 7/7/2022 0 Bluefin Payment Systems 06/22 Pay Pad Processing Fees 001-0410-51000 9.27 7/7/2022 0 Cardconnect 06/22 Card Connect Credit Card Charges 019-1905-51000 169.26 7/7/2022 0 IMRF 06/22 Contributions 001-0000-20311 119,936.89 7/7/2022 0 Bluefin Payment Systems 06/22 EB Webpayment Credit Card Processing Fee 067-0000-51000 1,395.46 7/7/2022 0 Cardconnect 06/22 Card Connect Credit Card Charges 019-1950-51000 783.51 7/7/2022 0 Farmers & Mechanics Bank 06/22 F&M Bank Trust Fees 061-0000-51000 249.51 7/7/2022 0 Farmers & Mechanics Bank 06/22 F&M Bank Trust Fees 019-1905-51000 4.29 7/7/2022 0 Farmers & Mechanics Bank 06/22 F&M Bank Trust Fees 053-0000-51000 41.36 7/7/2022 96729 Knox County Recorders Office Recording Fee 001-0160-51000 63.00 7/7/2022 4054 ABG Enterprise, Inc.DCEO RLF at 253 W Water 013-0000-83100 2,200.00 7/7/2022 0 Bluefin Payment Systems 06/22 Pay Pad Processing Fees 001-0306-51000 9.27 Grand Total 300,946.26$ ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by Gug Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 5, 2022 AGENDA ITEM: Amendment to Chapter 152 of the Development Ordinance regulating High Tunnel Structures. SUMMARY RECOMMENDATION: The Planning and Zoning (P&Z) Commission held the required public hearing during their June 21, 2022 meeting and on a vote of 4 ayes (Members Johnson, Lee, McKelvie, Uhlmann) and zero nays recommended approval. The Interim City Manager and Director of Community Development concur with the P&Z Commission’s recommendation. BACKGROUND: Attached for the Commission’s review is an amendment to the Development Ordinance regarding High Tunnel Structures (HTS). An HTS is a translucent plastic covered structure that is at least six feet tall and is utilized as a greenhouse that can assist a gardener in extending the growing season up to year-round. The existing ordinance provisions for High Tunnel Structures are found in Section 152.119 of the Galesburg Municipal Code and are attached for review. The proposed amendment includes: •Extending the time allowed for lighting inside an HTS from 6:00 am – 6:00 pm to 5:00 am –10:00 pm in all zoning districts that allow an HTS; and •Allowing HTS’s as permissive or accessory uses in the Agricultural, Light Industrial (M1) and General Business (B2) zoning districts. BUDGET IMPACT: There would be no anticipated impact upon the budget if the ordinance amendment is approved. SUPPORTING DOCUMENTS: 1.Existing ordinance regulating High Tunnel Structures 2.Ordinance Amendment to Chapter 152 of the Development Ordinance regulating High Tunnel Structures. 22-1021 Existing HTS Ordinance § 152.119 HIGH TUNNEL STRUCTURES. (A) Residential Zoning Districts. (1) Location. A high tunnel structure (HTS) is permitted as an accessory building provided the structure meets the provisions of this section. (2) Use. The HTS shall be utilized only to extend the length of the gardening season. Use of any HTS for maintaining livestock, fowl or other animals, as a storage facility, for vehicle storage, or as any other use other than growing of plants is prohibited. (3) Setback. The HTS shall comply with the setback requirements for any accessory building as specified in § 152.031. (4) Height. The maximum height of any HTS shall be 12 feet. The distance shall be measured from the ground to the highest point of the HTS. (5) Area. The HTS shall comply with the maximum allowable area as specified for accessory structures in § 150.022(B)(6) and § 152.111(B)(8). (6) Level of permanence. The HTS may be installed as a temporary structure or a permanent structure. (7) Selling food. Food produce that is grown in any HTS may be sold on the premise in accordance with the home occupation regulations in § 152.111(H). (8) Lighting. Any type of lighting which is installed for use with the HTS shall only be utilized between 6:00 a.m. and 6:00 p.m. No lights associated with any HTS shall be used outside of these hours. (B) Institutional Zoning District. (1) Location. A high tunnel structure (HTS) is permitted as either a principal or accessory building, provided the structure meets the provisions of this section. (2) Use. The HTS shall be utilized only to extend the length of the gardening season. Use of any HTS for maintaining livestock, fowl or other animals, as a storage facility, for vehicle storage or as any other use other than growing of plants is prohibited. (3) Setback. The HTS shall comply with the setback requirements as specified in §§ 152.031 and 152.073(F). (4) Height. The maximum height of any HTS shall be 20 feet. The distance shall be measured from the ground to the highest point of the HTS. (5) Area. A HTS shall be allowed as a principal or accessory building if the combined area of all HTSs shall not exceed 3,000 square feet per lot and the combined area of all HTSs shall not cover over 40% of the lot area. Any proposal to install HTSs that will exceed 3,000 square feet in total combined area per lot or will cover over 40% of the lot area shall require a special use permit in accordance with § 152.018. (6) Level of permanence. The HTS may be installed as a temporary structure or a permanent structure. (7) Refuse disposal areas. All refuse disposal areas shall be located in areas designed to provide adequate accessibility for service vehicles. Locations shall be to the rear of buildings or in areas where minimal exposure to public streets will exist. Refuse disposal and outside storage of materials, such as pallets, shall not be placed outside of enclosures. All refuse enclosures shall be screened by a solid fence (with the finished side facing outward) or wall. Containers or material within the fence enclosure shall not extend above the height of the fence. The area should be secured by a solid latchable gate. The use of chain link fences with slats is discouraged. (8) Selling and distributing of food. Food produce that is grown in any HTS may be sold or distributed for free on the premise under the following provisions: (a) The locations of produce for sale or free distribution are not to be located so as to block visibility for vehicles or pedestrians on or off the lot in a manner that would create a safety hazard; (b) Enclosed temporary structures incidental to the sales or free distribution shall comply with currently adopted building and fire codes. Temporary unenclosed structures, including roadside stands, must be portable and removed at the end of the sales/free distribution day. Roadside stands are permitted in the required front yard; (c) The sales and free distribution shall be limited to between the hours of 7:00 a.m. and 9:00 p.m.; (d) Use of a public address system or loudspeaker is expressly prohibited; (e) No sales or display activity shall be located on a public right-of-way; (f) All trash and debris shall be removed daily; (g) All signage shall conform to the standards set forth in this chapter; (h) The use shall be located along and have direct vehicular access to a public street; (i) All outdoor lighting shall conform with § 152.032. (9) Lighting. Any type of interior lighting which is installed for use with the HTS shall only be utilized between 6:00 a.m. and 6:00 p.m. No lights associated with any HTS shall be used outside of these hours. Any outdoor lighting used on the premises shall comply with the requirements in § 152.032. (Ord. 12-3352, passed 5-21-2012; Ord. 13-3408, passed 7-15-2013) Page 1 of 2 ORDINANCE NO. _________________ BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS, AS FOLLOWS: SECTION 1 That Section 152.119 (A) (8) of the Galesburg Code of Ordinances shall be, and hereby is, amended by eliminating the following language: Any type of lighting which is installed for use with the HTS shall only be utilized between 6:00 a.m. and 6:00 p.m. No lights associated with any HTS shall be used outside of these hours. And in its place insert the following language: Directed lighting to plants installed inside the HTS shall only be utilized between the hours of 5:00 a.m. and 10:00 p.m. Any outdoor lighting used on the premises shall comply with the requirements in § 152.032. SECTION 2 That Section 152.119 (B) of the Galesburg Code of Ordinances be, and the same hereby is amended, by replacing the words “Institutional Zoning District” with the words “Institutional (I), General Business (B2), Light Industrial (M1) & Agricultural (AG) Zoning Districts”. SECTION 3 That Section 152.119 (B) (3) of the Galesburg Code of Ordinances be, and the same hereby is amended, by replacing the words “152.073 (F)” with the words “their applicable zoning district”. SECTION 4 That Section 152.119 (B) (9) of the Galesburg Code of Ordinances be, and the same hereby is amended, by replacing the words “between 6:00 a.m. and 6:00 p.m.” with the words “between the hours of 5:00 a.m. and 10:00 p.m.” SECTION 5 All ordinances, or parts of ordinances, in conflict with this ordinance are, to the extent of such conflict, hereby repealed. SECTION 6 This ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law. Approved this _ day of , 2022 , by a roll call vote as follows: Roll Call #: Ayes: _________________________________________________________________________ Nays: _________________________________________________________________________ Page 2 of 2 Absent: _______________________________________________________________________ Abstain: _______________________________________________________________________ ATTEST: ______________________________ Peter Schwartzman, Mayor ____________________________ Kelli R. Bennewitz, City Clerk ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: BAN Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: An Ordinance Establishing the Airport Advisory Commission SUMMARY RECOMMENDATION: The Interim City Manager recommends approval of the Ordinance Establishing the Airport Advisory Commission. BACKGROUND: At the request of the City Council, staff has prepared an Ordinance establishing an airport advisory commission. The proposed commission shall be composed of five members with varied experience, including a pilot, a representative from the Fixed Base Operator (Jet Air Inc.), two residents of Galesburg with an interest in aviation or the airport, and a representative from the Knox County Area Partnership for Economic Development. Staff liaisons for this commission will include the Park Superintendent and Airport Manager, who shall serve as ex officio members. After initial appointments, members will serve three-year terms. If the Ordinance is approved, the Mayor will proceed with naming members to the advisory commission, subject to Council approval. The Commission will function like many existing specialized city commissions such as the Golf or Tree Commission. It will provide recommendations on capital projects, expansion and rules and regulations for the airport. The Commission will also provide an annual report to the City Council. BUDGET IMPACT: N/A SUPPORTING DOCUMENTS: 1.Ordinance 22-1022 ORDINANCE NO. _________________ AN ORDINANCE ESTABLISHING THE AIRPORT ADVISORY COMMISSION WHEREAS, the City of Galesburg, Illinois, is a home rule unit of government pursuant to Section 6, Article VII of the Constitution of the State of Illinois; and WHEREAS, Article VII, Section 6(a) of the Illinois Constitution grants a home rule unit authority to exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, the City owns and operates the Galesburg Municipal airport; and WHEREAS, the City Council finds that input from citizens with an expertise in aviation or economic development will assist the City staff with the successful operation of the airport; and WHEREAS, the City Council finds that creation of the Airport Advisory Commission is in the best interests of the health, safety, and welfare of the residents of Galesburg. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS, AS FOLLOWS: SECTION ONE: The foregoing recitals are hereby incorporated into this Ordinance as is fully set forth herein. SECTION TWO: Section 33.040 is created and shall hereafter read as follows: 33.040 ESTABLISHED The Airport Advisory Commission is hereby established, referred to in this subchapter as the Commission. SECTION THREE: Section 33.041 is created and shall hereafter read as follows: 33.041 MEMBERS (A) The Airport Advisory Commission shall have five members. The Commission shall consist of the following: (1) One representative from the Fixed Base Operator; and (2) One representative from the Knox County Area Partnership for Economic Development; and (3) One individual with a pilot’s license; and (4) Two residents of Galesburg with an interest in aviation or the Airport. (B) The Park Superintendent and Airport Manager shall serve as ex-officio members of the Airport Commission. (C) The Mayor shall appoint, subject to the City Council approval, the members of the Commission for terms of three years. For the initial appointments to the commission, terms shall be staggered so that two members serve three-year terms, two members serve a two-year term, and one member serves a one-year term. (D) The Commission shall annually elect from their membership one member who shall serve as chairperson of the Commission. The Chairperson shall preside over the meetings and shall be eligible for reelection. SECTION FOUR: Section 33.042 is created and shall hereafter read as follows: 33.042 POWERS AND DUTIES (A) The Commission’s duties shall be as follows: (1) Recommend rules and regulations for the operation of the airport; and (2) Make recommendations for future growth or expansion of the airport; and (3) Make recommendations for maintenance and capital projects at the airport; and (4) Provide recommendations and input on the annual operating budget for the airport; and (5) Provide an annual report to the City Council. SECTION FIVE: All ordinances or parts of ordinances, in conflict with this ordinance are, to the extent of such conflict, hereby repealed. SECTION SIX: This ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law. Approved this ______day of ____________________, 2022, by roll call vote as follows: Roll Call #: Ayes: ______________________________________________________________________ Nays: ______________________________________________________________________ Absent: _____________________________________________________________________ Abstain: _____________________________________________________________________ __________________________________ Peter Schwartzman, Mayor ATTEST: ___________________________________ Kelli R. Bennewitz, City Clerk ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: BAN Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: An Ordinance Regarding UTVs and Neighborhood Golf Carts SUMMARY RECOMMENDATION: At the request of members of the City Council, an Ordinance authorizing UTVs and Neighborhood Golf Carts to operate on certain city streets is presented for consideration. BACKGROUND: This ordinance would allow individuals who receive a permit, to operate a golf cart or utility task vehicle (UTV) on certain streets within the City of Galesburg. The user must secure an annual permit at a cost of $100.00 from the City Clerk’s Office, which would include an inspection of the vehicle conducted by the Galesburg Police Department. This inspection would include confirmation that the vehicle has certain safety equipment, such as seatbelts, turn signals, and brake lights. Operators must be at least eighteen years of age and all passengers must be at least eight years of age. Operators must also carry liability insurance for the vehicle. The vehicles shall be operated in the same direction as traffic, while remaining as near as possible to the right side of the roadway. The vehicle shall obey all traffic regulations and operate in the same manner as automobiles using the roadway. Included with this Council letter is a map depicting where operation of these vehicles is allowed per Section 80.02 of the Ordinance. They may also cross non-authorized roadways at controlled intersections, except for interstates/tollroads and controlled access highways. BUDGET IMPACT: Staff cannot estimate the number of vehicles which would register at this time. SUPPORTING DOCUMENTS: 1.Ordinance 2.Map 22-1023 ORDINANCE NO. _________________ AN ORDINANCE REGARDING UTVs AND NEIGHBORHOOD GOLF CARTS WHEREAS, the City of Galesburg, Illinois, is a home rule unit of government pursuant to Section 6, Article VII of the Constitution of the State of Illinois; and WHEREAS, Article VII, Section 6(a) of the Illinois Constitution grants a home rule unit authority to exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, the Illinois Vehicle Code provides that a municipality may adopt an ordinance allowing non-highway vehicles on its roadways (625 ILCS 5/11-1426.1(D); and WHEREAS, the City Council has considered the volume, speed, and character of traffic on its roadways and determined that neighborhood golf carts and UTVs may safely operate on certain roadways within Galesburg; and WHEREAS, the City Council finds that allowing these vehicles on certain City streets is in the best interests of the health, safety, and welfare of the residents of Galesburg. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS, AS FOLLOWS: SECTION ONE: The foregoing recitals are hereby incorporated into this Ordinance as is fully set forth herein. SECTION TWO: Section 80.01 is created and shall hereafter read as follows: 80.01 DEFINITIONS The following words, terms, and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Neighborhood golf cart shall have the definition as currently defined in 625 ILCS 5/1- 123.9, and shall be equipped with all safety systems and equipment as required by 625 ILCS 5/11- 1426.1, and Section 80.03 of the Galesburg City Code. Utility task vehicle (UTV), shall have the definition as currently defined in 625 ILCS 5/1- 168.8, and shall be equipped with all safety systems and equipment as required by 625 ILCS 5/11- 1426.1, and Section 80.03 of the Galesburg City Code. All-terrain vehicles are not considered UTVs. SECTION THREE: Section 80.02 is created and shall hereafter read as follows: 80.02 OPERATION OF UTVs AND NEIGHBORHOOD GOLF CARTS (A) Subject to the limitations set forth in Chapter 80, any person eighteen (18) years of age or above with a valid driver's license, may operate a neighborhood golf cart or UTV on any street or highway under the jurisdiction of the City of Galesburg provided that the posted speed limit for such street is 35 miles per hour or less, and further excepting those streets or portions of streets identified in subsection (C) of this Section. (B) This section shall not be construed as granting permission for any person operating a neighborhood golf cart or UTV to drive upon any highway under the jurisdiction of the county, or to drive upon any highway under the jurisdiction of the Illinois Department of Transportation. (C) Neighborhood golf carts or UTVs may not be operated on the following streets, or portions of streets: (1) Main Street; and (2) Linwood Road; and (3) Carl Sandburg Drive; and (4) Monmouth Boulevard; and (5) Henderson Street; and (6) South Street (from Academy Street to Grand Avenue); and (7) Losey Steet; and (8) Fremont Street (from Linwood Road to Lincoln Street); and (9) Farnham Street (from Fourth Street to Fremont Street); and (10) Kellogg Street (from Main Street to Bickerdyke Bridge); and (11) Lincoln Street; and (12) Seminary Street; and (13) Broad Street (from Simmons Street to Carl Sandburg Drive) (D) A person operating a neighborhood golf cart or UTV may cross the streets listed in subsection (C) at any intersection controlled by stop signs or traffic signals. (E) No person operating a non-highway vehicle shall make a direct crossing upon or across any tollroad, interstate highway, or controlled access highway in this State. No person operating a non-highway vehicle shall make a direct crossing upon or across any other highway under the jurisdiction of the State except at an intersection of the highway with another public street, road, or highway. SECTION FOUR: Section 80.03 is created and shall hereafter read as follows: 80.03 REQUIRED EQUIPMENT (A) No neighborhood golf cart or UTV may be operated on a street or highway under the jurisdiction of the city unless, at a minimum, it has the following safety equipment: (1) Brakes; and (2) Steering wheel apparatus; and (3) Tires; and (4) Rearview mirror; and (5) Red reflector warning devices on the front and rear; and (6) A slow moving emblem (as required of other vehicles by 625 ILCS 5/12-709); and (7) A headlight that emits a white light visible from a distance of at least five hundred (500) feet to the front; and (8) A tail lamp that emits a red light visible from a distance of at least one hundred (100) feet from the rear; and (9) Brake lights on the rear of the vehicle; and (10) Windshield; and (11) Horn; and (12) Two front turn signals; and (13) Two rear turn signals; and (14) Seatbelts. SECTION FIVE: Section 80.04 is created and shall hereafter read as follows: 80.04 OPERATIONAL RULES When on a street under the jurisdiction of the city, a neighborhood golf cart or UTV shall be operated in accordance with the following regulations: (A) The neighborhood golf cart or UTV shall have its headlights and tail lamps lighted at all times. (B) Any person operating a neighborhood golf cart or UTV, as authorized in this chapter, shall travel on the street in the same direction as traffic and as near to the right side of the roadway, as possible. (C) Except as otherwise provided in this chapter, any person operating a neighborhood golf cart or UTV on streets under the jurisdiction of the city shall obey all traffic regulations set forth either in this Code or state law. (D) The applicant and all operators must be at least eighteen (18) years of age and passengers must be at least eight (8) years of age. (E) Any neighborhood golf cart or UTV operated within the city must acquire and display on the vehicle a current inspection/permit sticker from the City Clerk's office after the neighborhood golf cart or UTV has passed an inspection by the Police Department. The permit sticker is to be affixed to the lower right corner (passenger side) of the vehicle's windshield or half-windshield in a manner to be clearly visible at all times. SECTION SIX: Section 80.05 is created and shall hereafter read as follows: 80.05 PERMIT REQUIRED (A) No person shall operate a neighborhood golf cart or UTV within the city without first obtaining an inspection sticker/permit. Permits shall run from January 1st through December 31st of each year. Applications for a permit shall be made on a form supplied by the city, shall be executed by the applicant, and shall contain the following information: (1) Name and address of applicant. (2) Name of liability insurance carrier and policy number. (3) The serial number, make, model and description of the neighborhood golf cart or UTV. (4) Such other information as the city may require. (B) No permit shall be granted unless the vehicle has been inspected and approved by the Police Department as follows: (1) The applicant must provide evidence of insurance in compliance with the provisions of the state statutes regarding minimum liability insurance for passenger motor vehicles to be operated on the roads of the state. (2) The applicant must provide a copy of their driver's license. (3) The applicant must provide access to the UTV or Neighborhood Golf Cart for inspection and confirmation that it meets all established requirements. (4) Any additional information the Galesburg Police Department may require. (C) Permits may be renewed upon demonstration of compliance with the requirements for initial issuance of a permit and the payments of the permit fee. (D) The neighborhood golf cart/UTV permit fee shall be one hundred dollars ($100.00). SECTION SEVEN: Section 80.06 is created and shall hereafter read as follows: 80.06 PENALTY (A) Any person who violates a provision of this Chapter shall be subject to a minimum fine of $150.00 and a maximum fine of $1000. (B) The City Manager may suspend or revoke a permit issued for violation of regulations of this Chapter or state law in accordance with Section 110.009 of the Galesburg City Code. SECTION EIGHT: All ordinances or parts of ordinances, in conflict with this ordinance are, to the extent of such conflict, hereby repealed. SECTION NINE: This ordinance shall be in full force and effect from and after its passage, approval and publication as provided by law. Approved this ______day of ____________________, 2022, by roll call vote as follows: Roll Call #: Ayes: ______________________________________________________________________ Nays: ______________________________________________________________________ Absent: _____________________________________________________________________ Abstain: _____________________________________________________________________ __________________________________ Peter Schwartzman, Mayor ATTEST: ___________________________________ Kelli R. Bennewitz, City Clerk July 13, 2022 /LINCOLN STSHENDERSONSTN BROAD STSSEMINARYSTNLINWOODRDE MAIN ST W DAYTON ST S LINWOOD RDE FREMONT ST E LOSEY ST E SOUTH ST MONM O U T H B L V D W FREMONT ST W LOSEY ST G R A N D A V E W MAIN ST W SOUTH ST N SEMINARY STN HENDERSON ST")30 £¤150 E CARL SANDBURG DR W CARL SANDBURG DR S FARNHAM STN FARNHAM ST")9 ")9 ")40 ")7 ")1 ")32 ")30 ")25 ")10 ")31 ¬«41 ¬«164 £¤150 £¤150 £¤34 £¤34 §¨¦74 §¨¦74 County, State or Federal Routes- Cannot by Driven On or Crossed Arterial Routes - Cannot by Driven On and Only Crossed at Signalized or Stop Controlled Intersections Allowed Allowed Crossings UTV Ordinance MapPublic Works Department ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: CSG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Approve a resolution to accept donation of real property located at 359 S. Henderson Street. SUMMARY RECOMMENDATION: The Interim City Manager, City Attorney and Administrative Services Director, and Community Development Director recommend approval of the resolution accepting the donation of a residence and accessory structure located at 359 S. Henderson Street for demolition or repair. BACKGROUND: The residence and accessory structure located at 359 S. Henderson Street are in a dilapidated and unsafe condition. The property is owned by the estate of Eugene H. Goodlow, and the Administrator of the Estate wishes to donate the property to the City. Acquisition of the property would allow the City access to evaluate the property and determine if rehabilitation is feasible or move forward with demolition and clean-up of the property. BUDGET IMPACT: There are applicable funds available in Property Redevelopment (Fund 23) to demolish or rehabilitate the property. The estimated cost of demolition is $14,000 - $16,000. SUPPORTING DOCUMENTS: 1.Resolution 2. Photos 22-2040 RESOLUTION NO. ______________ A RESOLUTION ACCEPTING THE DONATION OF REAL PROPERTY FOR DEMOLITION WHEREAS, The Estate of Eugene H. Goodlow, deceased, is the record owner of a building and accessory structure located at 359 S. Henderson Street; and WHEREAS, the Administrator of the Estate of Eugene H. Goodlow wishes to donate the property to the City of Galesburg; and WHEREAS, the building and accessory structure located on the property at 359 S. Henderson Street is in a dilapidated and unsafe condition; and WHEREAS, the City of Galesburg wishes to accept donation of the property located at 359 S. Henderson Street in order to bring the property into compliance with housing standards or demolish the property; and WHEREAS, the City Council finds that acceptance of this donation of real property is in the best interests of the citizens of Galesburg. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Galesburg, Knox County, Illinois as follows: SECTION ONE: The foregoing recitals are hereby incorporated into this Resolution as if fully set forth herein. SECTION TWO: The Mayor, City Clerk and City Attorney are directed to take any and all action necessary to receive the donation of the following parcel of property: Legal Description: Lot 40 in Block 117 in the Second Southern Addition to the City of Galesburg, Knox County, Illinois. As per Plat thereof recorded in Volume 2 of Plats, page 93, excepting the East 2 feet thereof. Parcel number: 99-15-151-012 Property address: 359 S. Henderson Street SECTION THREE: This Resolution shall be in full force and effect from and after its approval and passage as provided by law. Approved this day of , 2022 , by a roll call vote as follows: Roll Call #: Ayes:________________________________________________________________________ Nays:________________________________________________________________________ Absent:______________________________________________________________________ Abstain:______________________________________________________________________ ______________________________ Peter Schwartzman, Mayor ATTEST: ____________________________ Kelli R. Bennewitz, City Clerk ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: BAN Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: A Resolution Authorizing Execution of a Grant Agreement with Discovery Depot Children’s Museum. SUMMARY RECOMMENDATION: The Interim City Manager recommends approval of the Resolution. BACKGROUND: The Resolution authorizes the execution of a grant agreement with Discovery Depot Children’s Museum in an amount up to $40,000. The award is split between reimbursement for lost revenues in fiscal years 2020 and 2021 ($25,000) and a targeted marketing campaign ($15,000). Submittal for reimbursement by Discovery Depot must occur within one year of the award. BUDGET IMPACT: Sufficient funds are available for this Award. SUPPORTING DOCUMENTS: 1.Resolution 2.Grant Agreement 3.Request Letter 22-2041 RESOLUTION NO. _________________ A RESOLUTION AUTHORIZNIG EXECUTION OF A GRANT AGREEMENT WITH DISCOVERY DEPOT CHILDREN’S MUSEUM WHEREAS, the City of Galesburg, Illinois, is a home rule unit of government pursuant to Section 6, Article VII of the Constitution of the State of Illinois; and WHEREAS, Article VII, Section 6(a) of the Illinois Constitution grants a home rule unit authority to exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, Discovery Depot Children’s Museum provides 14,000 square feet of diverse programing, exhibits, and activities for children ages 1 to 12; and WHEREAS, due to the COVID 19 pandemic, Discovery Depot Children’s Museum had extended closures and limited attendance, resulting in a significant reduction in revenue; and WHEREAS, additional advertising would assist Discovery Depot Children’s Museum in attracting and recovering visitors; and WHEREAS, the City Council finds that a one-time grant disbursement of funds to Discovery Depot is in the best interests of the health, safety and welfare of the residents of Galesburg. NOT, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS: SECTION ONE: The foregoing recitals are hereby incorporated into this Resolution as is fully set forth herein. SECTION TWO: That the Mayor and City Clerk are hereby authorized to execute a grant agreement (attached as Exhibit A) with the Galesburg Museums Inc., an Illinois not for profit corporation, in the amount of $40,000 payable within one year of execution of the Grant Agreement. Approved this ______day of ____________________, 2022, by roll call vote as follows: Roll Call #: Ayes: ______________________________________________________________________ Nays: ______________________________________________________________________ Absent: _____________________________________________________________________ Abstain: _____________________________________________________________________ _________________________________ Peter Schwartzman, Mayor ATTEST: ___________________________________ Kelli R. Bennewitz, City Clerk EXTERNAL AGENCY AGREEMENT CONCERNING USE OF CITY OF GALESBURG GRANT FUNDS THIS AGREEMENT is entered into on __________________, by and between the City of Galesburg, an Illinois municipal corporation, hereinafter “City”, and Galesburg Museums Inc. hereinafter the “Grantee”. I. PURPOSE OF FUNDING. City hereby agrees to provide funding to the Grantee for use solely for the purposes outlined in the Project Scope (Exhibit A) and for no other purposes. The total award to Grantee is further outlined in Exhibit A, but will include reimbursement in the amount of up to $40,000 payable within one year of execution of this agreement, based on revenue losses attributable to COVID-19 and a targeted marketing campaign. II. PAYMENTS. The City will provide the Grantee with funding on a reimbursement basis, which is contingent upon the event or service being held or provided as outlined in the grant request letter. Payment will be processed after the conclusion of the event or service, and upon the Grantee submitting all required documentation and receipts. The request for reimbursement and all supporting documentation must be provided by the Grantee to the City within one year of execution of this grant agreement. The total payment by City to Grantee will not exceed the awarded grant amount. III. LIMITATION ON THE USE OF GRANT FUNDS. Grant funds may be expended only for project purposes and activities as set forth in Exhibit A. A grantee’s request for any modification must be made in writing and approved by City before any expenditures differing from the original grant award are paid from funds provided by City. The Grantee is responsible for reimbursement to the City for any disbursed Grant Award funds that are determined by the City to have been ineligible, misused or misappropriated. The Grantee shall repay these funds within 45 days of written request. Failure of Grantee to repay funds after written notice by the City shall entitle the City to seek recovery through litigation and recover any reasonable attorney’s fees or legal expenses incurred in recovering such funds. IV. REPORTS AND RECORDS RETENTION. The grantee shall submit to the City, before the end of the calendar year, and prior to a disbursement of funds from the City to the Grantee, a grant report and a copy of all receipts for expenses to be paid from City funds. Failure to file the report and final receipts in a timely manner will preclude the Grantee from receiving awarded funding and applying for City grants and programs in the future. Financial records must be kept for inspection and/or audit for a period of two years following the submission of said receipts. Financial records include receipts documenting actual expenditures, payroll statements, vouchers, invoices and bills, covering all receipts and expenditures of grant funds. The Grantee recognizes the right of City or its designee to make a full audit of Grantee’s records relating to this grant. V. INDEMNIFICATION. The Grantee assumes all liability for any and all injuries, damages, or claims in any way associated with the Grant Award and/or the Project. The Grantee shall indemnify and hold harmless the City and all of its officers, agents, and employees from all suits, actions or claims of any character brought for or on account of any injuries or damages received by any persons or property resulting from or in any way associated with the Grant Award and/or the Projects. IN WITNESS WHEREOF, the parties hereto have set their hands as of this _______ day of ___________________, 20____, CITY OF GALESBURG, an Illinois Galesburg Museums Inc. municipal corporation, Grantee (Print name of organization) By: __________________________ By:___________________________ Mayor Denise Bradburn – Executive Director Attest: _______________________ _______________________________ City Clerk Print name & title Attachment A – Project Scope 1. Revenue Offset a. $25,000 towards revenues lost in the 2020 and 2021 fiscal year. Discovery Depot shall submit financials showing a reduction in revenue in these years from revenues prior to the COVID-19 pandemic. b. Grantee shall submit their request for reimbursement for lost revenues within one year of execution of this Agreement. 2. Targeted Marketing a. $15,000 towards direct targeted marketing for Discovery Depot Children’s Museum b. Funds may only be used for targeted marketing. Grantee shall submit invoices for reimbursement for targeted marketing within one year of execution of this Agreement. Project Summary – Reimbursement of up to $40,000 payable within one year of execution of this Agreement. Galesburg Mayor and City Council: Discovery Depot Children’s Museum has been a part of the Galesburg community for 26 years. The success of the museum can be credited to the generosity and support of the city and the community itself. Donors, volunteers, sponsors, and members all have contributed to the ongoing success of the museum. Many towns our size do not offer such an amenity as a children’s museum to its residents. Discovery Depot is a hub of programming for local youth and families with nearly 20 program offerings each month. As the museum strives to meet the needs for programming in our community while keeping the cost to visitors low, our earned or through the door revenues are critical for sustaining the museum operations. Unlike most museums, the Discovery Depot does not receive tax dollars to operate. This puts the museum at a disadvantage when competing with other regional children’s museums such as Peoria Playhouse, The Bettendorf Family Museum or Children’s Discovery Museum in Normal. The list of tax dollar supported museums is much longer, as our Discovery Depot Children’s Museum is atypical in the industry. Discovery Depot Children’s Museum does more than offer an amenity to our residents or potential residents. We also serve as the number one tourist attraction in Knox County. Discovery Depot draws visitors regionally to Galesburg. Our greatest economic give back to our community is the power of visitor spending as they travel here to visit the museum. Our typical dwell time is 2 to 4 hours and without an offering of dining in the museum, many visitors choose to eat and shop in our local businesses. We track this through use of wrist bands so guests may return to the museum on the same day. Discovery Depot is one of few businesses in town that actively spends marketing dollars up to 180 miles from our location to bring families to Galesburg. The museum has had a dramatic decrease in attendance due to Covid. We are struggling to get back to our 2019 numbers. We face some upcoming challenges as Quincy Children’s Museum is set to open in 2023. The Macomb area and south of Macomb is one of our larger areas in which we draw visitors from, so the new museum will be impactful to our visitor numbers. Discovery Depot is also encountering aging exhibits as our first-floor renovation and new exhibits are now 9 years old. With an expected usage span of 15 to 20 years, our 1st floor exhibits are requiring more maintenance and will need upgraded in the upcoming years. We also are no longer located in an active TIF district, which has in the past helped the museum to grow and thrive through capital expansions. Without TIF assistance or any tax dollars for operational support, the prospect of further expansions or improvements seems bleak. Simply stated the Discovery Depot Children’s Museum does not make enough earned revenue to support operations annually and could not facilitate future renovations, expansions, or upgrades without help from the City of Galesburg. Discovery Depot Children’s Museum would like to request consideration for $40,000 in ARP funding for the 2022 fiscal year. We are making this request to offset the operational loss of earned revenue during the 2020 and 2021 fiscal years. Our request represents $25,000 in lost revenues and an additional $15,000 for direct targeted marketing. It is our hope that with the additional marketing dollars that the museum may gain through the door revenues for the remainder of 2022. In addition to the request for ARP funding in the 2022 fiscal year, Discovery Depot Children’s Museum Board of Directors would formally request to receive tax dollars annually beginning in 2023. Our request would be that the museum receive 12% of the hotel/motel tax dollars each year. It is our belief that the Discovery Depot brings thousands of visitors’ dollars to Galesburg annually and that the hotel/motel tax should support tourism entities as a priority. We believe that this is a good use of hotel/motel tax dollars. In looking at 2019 attendance numbers of almost 70,000 visitors and an out of area rate of over 50% of those visits, it is a justifiable allocation of this tax. The current allocations of the hotel/motel tax dollars include The Knox County Civic Center- The Orpheum Theater (18.5%), the Galesburg Promise (35%), Galesburg area CVB ($190,000) and general fund (24.5%). An allocation of 12% for the children’s museum would help the museum to market more extensively and wider to attract travelers. It would help to sustain the operations, programs, and allow for future expansions of the Discovery Depot. The Discovery Depot Children’s Museum is a true treasure to our community. It is an amenity that many towns our size do not offer or attract families nor have it as a major tourist attraction to drive people into their local businesses. The children’s museum constantly fights to sustain and works to make sure that it is still a Galesburg asset for many more years to come. We are at a disadvantage to compete with other family destinations that do receive tax dollars to operate. It is not randomly or lightly that the Board of Directors of Discovery Depot Children’s Museum makes this request of the City of Galesburg. Rather, it has been discussed, debated, researched, and necessary for many years. Following Covid and the recovery, this has now become a more urgent need for the museum. We ask for this support to ensure our future. The museum is thankful for the TIF dollars it has received from the past, grateful for our relationship with the City of Galesburg, and hopeful to remain a partner in our community for many years to come. Thank you for your careful consideration. I am happy to meet, answer questions, give a tour, and further discuss this request. Thank you, Denise Bradburn, Executive Director ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: BAN Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: A Resolution Authorizing Execution of a Grant Agreement with the Galesburg Tourism and Visitors Bureau SUMMARY RECOMMENDATION: The Interim City Manager recommends approval of the Resolution. BACKGROUND: The Resolution authorizes the execution of a grant agreement with the Galesburg Tourism and Visitor’s Bureau. Under the Agreement, during 2023 through 2027, the Tourism Bureau would be eligible for reimbursement of up to $25,000. This amount would be split between targeted advertising (up to $15,000) and a Music and Murals event (up to $10,000). In the event that during that year the Tourism Bureau does not host the Music and Murals event, or fails to spend funds on targeted advertising, they would not be entitled to any payment. BUDGET IMPACT: Sufficient funds are available for this Award. SUPPORTING DOCUMENTS: 1.Resolution 2.Grant Agreement 3.Request Letter 22-2042 RESOLUTION NO. _________________ A RESOLUTION AUTHORIZNIG EXECUTION OF A GRANT AGREEMENT WITH THE GALESBURG TOURISM AND VISITORS BUREAU WHEREAS, the City of Galesburg, Illinois, is a home rule unit of government pursuant to Section 6, Article VII of the Constitution of the State of Illinois; and WHEREAS, Article VII, Section 6(a) of the Illinois Constitution grants a home rule unit authority to exercise any power and perform any function pertaining to its government and affairs; and WHEREAS, Galesburg Tourism and Visitors Bureau has requested funding from the City of Galesburg to assist with targeted advertising to attract leisure travelers as well as meeting and event planners; and WHEREAS, Galesburg Tourism and Visitors Bureau, has requested funding to establish a new annual event entitled Music and Murals; and WHEREAS, the City Council finds that a grant agreement to the Galesburg Tourism and Visitor’s Bureau is in the best interests of the health, safety and welfare of the residents of Galesburg. NOT, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GALESBURG, ILLINOIS: SECTION ONE: The foregoing recitals are hereby incorporated into this Resolution as is fully set forth herein. SECTION TWO: That the Mayor and City Clerk are hereby authorized to execute a grant agreement (attached as Exhibit A) with the Galesburg Tourism and Visitors Bureau, an Illinois not for profit corporation, in the amount of $125,000 payable in annual amounts of $25,000 during the years of 2023 through 2027. Approved this ______day of ____________________, 2022, by roll call vote as follows: Roll Call #: Ayes: ______________________________________________________________________ Nays: ______________________________________________________________________ Absent: _____________________________________________________________________ Abstain: _____________________________________________________________________ _________________________________ Peter Schwartzman, Mayor ATTEST: ___________________________________ Kelli R. Bennewitz, City Clerk EXTERNAL AGENCY AGREEMENT CONCERNING USE OF CITY OF GALESBURG GRANT FUNDS THIS AGREEMENT is entered into on __________________, by and between the City of Galesburg, an Illinois municipal corporation, hereinafter “City”, and Galesburg Tourism and Visitors Bureau, an Illinois nonprofit corporation hereinafter the “Grantee”. I. PURPOSE OF FUNDING. City hereby agrees to provide funding to the Grantee for use solely for the purposes outlined in the Project Scope (Exhibit A) and for no other purposes. The total award to Grantee is further outlined in Exhibit A, but will include reimbursement in the amount of up to $25,000 per year beginning in 2023 and ending in 2027. II. PAYMENTS. The City will provide the Grantee with funding on a reimbursement basis, which is contingent upon the event or service being held or provided as outlined in the grant application. Payment will be processed after the conclusion of the event or service, and upon the Grantee submitting all required documentation and receipts. The request for reimbursement and all supporting documentation must be provided by the Grantee to the City prior to the end of the calendar year for that year's funding. The total payment by City to Grantee will not exceed the awarded grant amount. III. LIMITATION ON THE USE OF GRANT FUNDS. Grant funds may be expended only for project purposes and activities as set forth in Exhibit A. A grantee’s request for any modification must be made in writing and approved by City before any expenditures differing from the original grant award are paid from funds provided by City. The Grantee is responsible for reimbursement to the City for any disbursed Grant Award funds that are determined by the City to have been ineligible, misused or misappropriated. The Grantee shall repay these funds within 45 days of written request. Failure of Grantee to repay funds after written notice by the City shall entitle the City to seek recovery through litigation and recover any reasonable attorneys’ fees or legal expenses incurred in recovering such funds. IV. REPORTS AND RECORDS RETENTION. The grantee shall submit to the City, before the end of the calendar year, and prior to a disbursement of funds from the City to the Grantee, a grant report and a copy of all receipts for expenses to be paid from City funds. Failure to file the report and final receipts in a timely manner will preclude the Grantee from receiving awarded funding and applying for City grants and programs in the future. Financial records must be kept for inspection and/or audit for a period of two years following the submission of said receipts. Financial records include receipts documenting actual expenditures, payroll statements, vouchers, invoices and bills, covering all receipts and expenditures of grant funds. The Grantee recognizes the right of City or its designee to make a full audit of Grantee’s records relating to this grant. V. INDEMNIFICATION. The Grantee assumes all liability for any and all injuries, damages, or claims in any way associated with the Grant Award and/or the Project. The Grantee shall indemnify and hold harmless the City and all of its officers, agents, and employees from all suits, actions or claims of any character brought for or on account of any injuries or damages received by any persons or property resulting from or in any way associated with the Grant Award and/or the Projects. IN WITNESS WHEREOF, the parties hereto have set their hands as of this _______ day of ___________________, 20____, CITY OF GALESBURG, an Illinois GALESBURG TOURISM AND VISITORS BUREAU municipal corporation, By: __________________________ By:___________________________ Mayor Denise Bradburn – Board President Attest: _______________________ City Clerk Attachment A – Project Scope 1. Targeted Advertising Campaign a. $75,000 for targeted advertising provided by an outside vendor. b. Payable in the amount of up to $15,000 per year for a period of five years (2023-2027). c. Funds may only be used for targeted advertising. Grantee shall annually submit invoices for reimbursement to the City of Galesburg. 2. Music and Murals a. $50,000 to assist with the creation of a Music and Murals event in Galesburg. b. Payable in the amount of up to $10,000 per year for a period of five years (2023-2027). c. Funds may only be used for this event. Grantee shall annually submit invoices for reimbursement to the City of Galesburg. Project Summary – Reimbursement of up to $25,000 per year beginning in 2023 and ending in 2027. COVID-19’s impact on the hospitality and tourism industry has been devastating and unprecedented. The impact is estimated to be about nine times of that from 9/11. Many of our properties were unable to host group events. Also, restaurants were hurt by the closing of indoor dining, stay-at-home orders and strict capacity limits. That forced them to pivot, when they could, to takeout and delivery. Though assisted with Federal Relief Programs to pay employees not laid off and other rent and operational grants and loans, the future of the once robust industry that employed 1 in every 10 workers in Illinois is in peril. The hospitality industry took the brunt of the damage as a business sector and needs targeted long-term support to rebuild and regain its place as an economic powerhouse for Knox County. The Power of Travel is essential for the economic recovery and well-being of Knox County and western Illinois. The hospitality and travel industry has been ravaged by the COVID-19 pandemic. In 2020, visitor spending and tax reve- nues statewide were down 49%. Re-establishing our position in the highly competitive tourism market is paramount and the result will be a lower tax burden on the citizens of Galesburg & Knox County. We have the perfect location for tourist in western Illinois. Easy access by car. And we have the amazing added ben- efit of Amtrak with trains daily to and from Chicago. Using this ease of accessibility, we need to bring back the hospi- tality work force and promote our community as a destination to meet, play, work and live. We must be relentless in positioning Knox County as a destination. If we do that, then we are - in turn - relentless in protecting the livelihood of our small businesses and ultimately protecting the livelihood of our economy, our community and our families. With an amazing food scene, a beautiful and inspiring art culture, a rich history and countless outdoor adventures, Galesburg offers travelers a unique and wonderful experience with each visit. American Rescue Plan As a result of the passage of the Federal American Rescue Plan (ARP), Knox County is set to receive more than $9 Million in fiscal recovery funds. Specifically, ARP authorizes the governments to use these funds to respond to the COVID-19 health emergency or its negative economic impacts including, but not limited to, assistance to households, small businesses, nonprofits, or aid to impacted industries such as tourism, travel and hospitality. The Request Establish the COVID-19 Galesburg Tourism Attraction and Promotion Relief Fund. This will be used to pay for ad- vertising to spread the word about the reopening of Galesburg and Knox County tourism sites, hotels, restaurants, art centers, breweries and wineries and other small businesses with a travel safe message highlighting the great tourism attributes of Galesburg. We must be relevant and visible. We need more promotion with greater frequency and reach. Establish the Galesburg Mural Trail to attract visitors to see the amazing works of art across Galesburg and Knox County. Each year, a new mural will be painted in our area At the end of the five years, we will be able to package these along with our existing murals and outdoor works of art as a must see attraction for visitors. The Power of Travel in Galesburg and Knox County The Program The paid advertising campaign will be placed and launched in the Spring of each year. It will include, digital, out-of- home, social media and influencer activations with the message that all of Knox County is open for visitors and busi- ness. The campaign will target leisure travelers, as well as meeting and event planners with the goal of bringing back group and business travel to Knox County. Target leisure markets will include: • Chicago Area • Iowa/Quad Cities • Peoria The grant fund program will be administered by the Galesburg Tourism and Visitors Bureau, the official Destination Marketing Organization (DMO) for Galesburg and Knox County and certified by the DCEO/Illinois Office of Tourism. The Ask $40,000 per year to go towards a paid advertising campaign for the next five years. $10,000 per year toward the mural project for the next five years. Total ask is for $250,000 over a five year period ($50,000/year). Thank you very much for your consideration of this request. Sincerely, Randy Newcomb Executive Director Galesburg Tourism and Visitors Bureau ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: CSG Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Approve a resolution to authorize the purchase of property located at 518 W. South Street. SUMMARY RECOMMENDATION: The Interim City Manager, City Attorney and Administrative Services Director, and City Engineer recommend approval of a resolution authorizing the purchase of 518 W. South Street in order to demolish the existing house and expedite the South Street storm sewer replacement project. BACKGROUND: At the April 4, 2022 City Council meeting, an engineering services agreement for storm sewer replacement on South Street was approved. Bids for the project are included on tonight’s agenda. The project entails reconstructing dilapidated brick storm sewer that runs under South Street, between Monmouth Boulevard and Holton Street. The storm sewer runs underneath a portion of a house located at 518 W. South Street. Recently, a section of the old brick storm sewer collapsed on the top, near the residence located at 518 W. South Street. On July 8, 2022, the city subsequently received a large amount of rain which washed out the dirt between the section of the sewer that had collapsed and the house nearby, which undermined the foundation of the house. Due to the storm sewer running under a portion of the house, and the damage to the foundation of the house, it is proposed to purchase the house from the owners of the property, Calvary Baptist Church, for $39,000. This will allow the city to demolish the house, as well as complete the planned South Street storm sewer reconstruction project without having the reroute the storm sewer around the house. BUDGET IMPACT: There are funds available in Storm Sewer Fund (018) to purchase and demolish the property. It may be possible to install the storm sewer on the existing alignment once the house is demolished, which could result in a cost of savings to the storm sewer project from not having to reroute the storm sewer. SUPPORTING DOCUMENTS: 1.Resolution 22-2043 RESOLUTION NO. ______________ A RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 518 W. SOUTH STREET FOR DEMOLITION AND STORM SEWER RECONSTRUCTION WHEREAS, Calvary Baptist Church is the owner of property located at 518 W. South Street; and WHEREAS, the City of Galesburg is reconstructing the storm sewer on South Street, including a section that partially runs underneath the property located at 518 W. South Street; and WHEREAS, Calvary Baptist Church wishes to sell the property to the City of Galesburg; and WHEREAS, the City of Galesburg wishes to purchase the property in order to demolish the house and construct the storm sewer; and WHEREAS, the City Council finds that purchase of this real property is in the best interests of the citizens of Galesburg. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Galesburg, Knox County, Illinois as follows: SECTION ONE: The foregoing recitals are hereby incorporated into this Resolution as if fully set forth herein. SECTION TWO: The Mayor, City Clerk and City Attorney are directed to take any and all action necessary to purchase the following parcel of property: Legal Description Tract 1: Sublot 3 of Hurd's Subdivision of Lots C, D, E and L of a Subdivision of Block 117, in the City of Galesburg, Knox County, Illinois, also known as Lot 7 of said Block 117; and. Tract 2: Lot 13 (also known as Lot F) in Block 117 in the City of Galesburg, Knox County, Illinois. Parcel number: 99-15-154-052 Property address: 518 W. South Street SECTION THREE: This Resolution shall be in full force and effect from and after its approval and passage as provided by law. Approved this day of , 2022 , by a roll call vote as follows: Roll Call #: Ayes:________________________________________________________________________ Nays:________________________________________________________________________ Absent:______________________________________________________________________ Abstain:______________________________________________________________________ ______________________________ Peter Schwartzman, Mayor ATTEST: ____________________________ Kelli R. Bennewitz, City Clerk ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: RLI Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Approval of the purchase of the HP storage Area Network (SAN) SUMMARY RECOMMENDATION: The Interim City Manager, and Police Chief, and Purchasing Agent recommend the approval of purchase of the HP SAN from Southern Computer Warehouse for the amount of $97,378.26 BACKGROUND: The Storage Area network (SAN) is the device that allows the public safety building to store all the information and data on our computer servers. This data includes computer aided dispatching (CAD), police records management system (RMS) network drives, Laserfiche, fire RMS and other information. Due to the nature of this information, it is vital the system is highly redundant The system also must have the capacity to be expandable as our data needs increase over time. Two bids were received for this purchase from Southern Computer Warehouse and Office Specialists Inc. Staff is recommending the purchase of the HP product from Southern Computer Warehouse. The Dell product submitted by Office Specialists does not meet the minimum bid specifications as it does not have the required redundant systems in the case of a drive failure. The Dell product also is not expandable, which would require the purchase of an entire new system if the city’s data requirements increase. The HP system submitted in the bid from Southern Computer Warehouse also has data reducing technology, which will allow us to make more efficient use of the storage and save money by reducing data needs. While Office Specialist proved to be the lowest bidder, Southern Computer Warehouse met the necessary requirements listed in the bid specifications and will be most advantageous for the city. BUDGET IMPACT: This purchase will be paid for from the computer replacement fund as well as the police budget. Appropriate funds have been budgeted for this purchase. SUPPORTING DOCUMENTS: 1.Bid tabulations 22-3024 CITY OF GALESBURG Finance Department Bid tabulation for PSB SAN Equipment 6/29/2022 Attended by: A.Jennings/C.LeMaster/T.Miller Southern Computer Warehouse Office Specialist Inc Marietta, Georgia Galesburg, IL Cost Cost SAN Equipment with 5 yr Support Agreement $97,378.26 $76,398.00 Anticipated Delivery Date 1 to 5 months depending on the item One month *Bids are under review by PSB staff ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: AJG Page 1 of 2 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: Bids for parking lot improvements at Seminary Street and Mulberry Street. SUMMARY RECOMMENDATION: The Interim City Manager, City Engineer, and Purchasing Agent recommend approval of the bid in the amount of $186,647.00 submitted by Laverdiere Construction, Inc. of Macomb, IL. BACKGROUND: The scope of the project is to construct a new parking lot on the northeast corner of Seminary Street and Mulberry Street. The City purchased the lot in 2021. The previous owner agreed to sell the lot to the City if the intention was to construct a public parking lot. The existing lot is a vacant gravel lot that is in an unattractive condition and in the center of downtown. The scope of the work will be to construct new concrete curb and concrete pavement, install a new entrance to the lot off Seminary Street, and install landscaping around the lot that matches the landscaping in the adjacent Public Parking Lot D. The lot will have a total of 25 new parking spaces. These parking spaces are needed in this area due to the proximity to many restaurants, the Amtrak Depot, retail stores, and the Discovery Depot. The project was advertised in the Register Mail and on the City’s website. Fifteen (15) bid proposals were sent out and two (2) bids were received. The low bidder was Laverdiere Construction Inc. from Macomb, IL in the amount of $211,306.00. The bid for this project was not within the estimated amount anticipated for the work. Due to increased construction costs this year, the low bid was higher than anticipated and budgeted. The low bidder provided cost saving options to reduce the cost of the project. These included constructing a concrete pavement instead of an asphalt pavement as well as revising the landscaping price. The cost of asphalt has gone up significantly this year and constructing the lot in concrete is more cost effective than asphalt. This change will not reduce the useful life of the lot and will likely extend it. No changes to the landscaping plan will need to be made because of the reduced price. The revised bid amount with the cost saving measures is $186,647.00. Staff recommends approval of the revised amount. BUDGET IMPACT: A total of $150,000 will be paid from the TIF IV Fund (Fund 049) and $36,647.00 will be paid from the Planning Fund (Fund 054). SUPPORTING DOCUMENTS: 1.Vendors contacted 2.Bid Tabulation 3.Revised Bid 22-3025 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: AJG Page 2 of 2 VENDORS CONTACTED: Gunther Construction Co., Galesburg, IL Brandt Construction, Milan, IL Laverdiere Construction, Macomb, IL McCarthy/Foley, Davenport, IA Illinois Civil Contractors, Inc., East Peoria, IL Hein Construction Co., Galesburg, IL Valley Construction Co., Rock Island, IL Otto Baum Co., Morton IL County Contractors, Inc., Quincy, IL Advanced Asphalt, Princeton, IL G.M. Sipes Construction, Inc., Rushville, IL Miller & Son Construction, Mackinaw, IL Stark Excavating, Bloomington, IL Phoenix Corporation, Port Byron, IL Lockwood Excavating & Construction, Galesburg, IL CITY OF GALESBURG Purchasing Operating Under Council- Manager Government Since 1957 SEMINARY AND MULBERRY PARKING LOT BIDDER NAME: Section: 22-01201-58-PK BIDDER ADDRESS: Bid Date: 7/6/2022 CITY/STATE/ZIP: ATTENDED BY: MILLER/GAVIN UNIT UNIT UNIT QTY UNIT ITEM PRICE TOTAL PRICE TOTAL PRICE TOTAL 14 CY TRENCH BACKFILL 80.00$ 1,120.00$ 63.00$ 882.00$ 830 SY GEO FAB FRO GROUND STAB 3.00$ 2,490.00$ 3.49$ 2,896.70$ 22 SY AGG BASE CRSE, TY B, 2"25.00$ 550.00$ 53.12$ 1,168.64$ 505 SY AGG BASE CRSE, TY B, 2" SPL 11.00$ 5,555.00$ 9.48$ 4,787.40$ 21 SY AGG BASE CRSE, TY B, 6"16.00$ 336.00$ 60.72$ 1,275.12$ 830 SY AGG BASE CRSE, TY B, 8"25.00$ 20,750.00$ 35.00$ 29,050.00$ 302 LBS POLY BIT MATLS (TACK COAT)7.00$ 2,114.00$ 7.28$ 2,198.56$ 71 TON POLY HMA BIND CRSE IL 9.5 420.00$ 29,820.00$ 441.25$ 31,328.75$ 71 TON POLY HMA SURF CRSE MIX D N50 420.00$ 29,820.00$ 441.25$ 31,328.75$ 22 SY PCC DRIVEWAY PVT, 8"195.00$ 4,290.00$ 409.54$ 9,009.88$ 385 SF PCC SIDEWALK, 5"37.00$ 14,245.00$ 24.06$ 9,263.10$ 120 SF PCC SIDEWALK, 8"39.00$ 4,680.00$ 72.59$ 8,710.80$ 8 SY PAVEMENT REMOVAL 32.00$ 256.00$ 458.55$ 3,668.40$ 73 FT CURB REMOVAL 20.00$ 1,460.00$ 52.79$ 3,853.67$ 700 SF SIDEWALK REMOVAL 6.00$ 4,200.00$ 10.66$ 7,462.00$ 48 FT STORM SEWER CL B, TY 1, 12"124.00$ 5,952.00$ 157.90$ 7,579.20$ 1 EA INLETS, TY A, TY 5 F&G OL 3,980.00$ 3,980.00$ 11,002.91$ 11,002.91$ 326 FT CONC CURB, TY B 98.00$ 31,948.00$ 56.52$ 18,425.52$ 1 LS MOBILIZATION 5,000.00$ 5,000.00$ 7,501.71$ 7,501.71$ 1 LS TRAFFIC CON & PROT (SPL)3,900.00$ 3,900.00$ 4,502.47$ 4,502.47$ 1 LS CONSTRUCTION LAYOUT 2,500.00$ 2,500.00$ 6,689.94$ 6,689.94$ 1 LS TOPSOIL, EX. AND PLACE 5,400.00$ 5,400.00$ 4,871.57$ 4,871.57$ 1 LS LANDSCAPING 14,000.00$ 14,000.00$ 7,015.19$ 7,015.19$ 484 CY EARTH EXCAVATION 35.00$ 16,940.00$ 52.33$ 25,327.72$ -$ -$ -$ -$ TOTAL COST 211,306.00$ 239,800.00$ Laverdiere Construction Otto Baum Company, Inc. 4055 W. Jackson Street 866 N. Main St. Bid Bond Bid Bond Macomb, IL 61455 Morton, IL 61550 CITY OF GALESBURG Purchasing Operating Under Council- Manager Government Since 1957 SEMINARY AND MULBERRY PARKING LOT BIDDER NAME: Section: 22-01201-58-PK BIDDER ADDRESS: CITY/STATE/ZIP: UNIT QTY UNIT ITEM PRICE TOTAL 14 CY TRENCH BACKFILL 80.00$ 1,120.00$ 0 SY GEO FAB FRO GROUND STAB 3.00$ -$ 22 SY AGG BASE CRSE, TY B, 2"25.00$ 550.00$ 0 SY AGG BASE CRSE, TY B, 2" SPL 11.00$ -$ 21 SY AGG BASE CRSE, TY B, 6"16.00$ 336.00$ 0 SY AGG BASE CRSE, TY B, 8"25.00$ -$ 0 LBS POLY BIT MATLS (TACK COAT)7.00$ -$ 0 TON POLY HMA BIND CRSE IL 9.5 420.00$ -$ 0 TON POLY HMA SURF CRSE MIX D N50 420.00$ -$ 22 SY PCC DRIVEWAY PVT, 8"195.00$ 4,290.00$ 385 SF PCC SIDEWALK, 5"37.00$ 14,245.00$ 120 SF PCC SIDEWALK, 8"39.00$ 4,680.00$ 8 SY PAVEMENT REMOVAL 32.00$ 256.00$ 73 FT CURB REMOVAL 20.00$ 1,460.00$ 700 SF SIDEWALK REMOVAL 6.00$ 4,200.00$ 48 FT STORM SEWER CL B, TY 1, 12"124.00$ 5,952.00$ 1 EA INLETS, TY A, TY 5 F&G OL 3,980.00$ 3,980.00$ 326 FT CONC CURB, TY B 98.00$ 31,948.00$ 1 LS MOBILIZATION 5,000.00$ 5,000.00$ 1 LS TRAFFIC CON & PROT (SPL)3,900.00$ 3,900.00$ 1 LS CONSTRUCTION LAYOUT 2,500.00$ 2,500.00$ 1 LS TOPSOIL, EX. AND PLACE 5,400.00$ 5,400.00$ 0 LS LANDSCAPING 14,000.00$ -$ 484 CY EARTH EXCAVATION 35.00$ 16,940.00$ 830 SY PCC PAVEMENT 8" NON-REINFORCED 83.00$ 68,890.00$ 1 LS LANDSCAPING REVISED 11,000.00$ 11,000.00$ TOTAL COST 186,647.00$ REVISED SCOPE BID AMOUNT Laverdiere Construction 4055 W. Jackson Street Bid Bond Macomb, IL 61455 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: AJG Page 1 of 2 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: Bids for storm sewer replacement on South Street. SUMMARY RECOMMENDATION: The Interim City Manager, City Engineer, and Purchasing Agent recommend approval of the bid in the amount of $494,669.66 submitted by Legacy Corporation of East Moline, IL. BACKGROUND: The scope of the proposed project is to replace an existing 54” brick storm sewer that runs underneath South St. between Monmouth Boulevard and Holton Street. The brick sewer was inspected in 2016 and again in 2020 following a collapse of a portion of the sewer just south of South Street. After the 2020 inspection, it was determined that the sewer was in poor condition due to many defects and could fail again soon. The sewer collapsed again in late June this year near 518 W. South St. close to the location of the previous collapse. Bid documents for replacement of a 500 foot long section of the sewer were put together and advertised in February of this year. The results of the bids and a recommendation to reject the bids was brought to Council at the April 4, 2022 meeting. The low bid at the time of $1,270,009.40 was significantly more than what was budgeted for the project and Council approved the rejection of the bids. Revised bid documents were put together that reduced the scope of the project. It included replacing a shorter stretch of the sewer and avoided a sanitary conflict that was costly to relocate in the previous bid. The revised scope will replace approximately 250 foot of the existing sewer. This 250 foot section is in the worst condition based off information collected in previous inspections, and includes replacement of the section that has now collapsed twice near a residence. It is planned to put together a future project to put in a liner in the remaining section not included in the revised scope. The project was advertised in the Register Mail, in the Illinois Department of Transportation Bulletin to all contractors statewide, and on the City’s website. Eleven (11) bid proposals were sent out and three (3) bids were received. The low bidder was Legacy Corporation from East Moline, IL in the amount of $494,669.66. The bids for this project were within the estimated amount anticipated for the work and therefore it is recommended to approve the bid. A DCEO Rebuild Illinois grant will fund $300,000 of the construction costs for the project. The remaining $194,669.66 will be paid from the Storm Water Utility fund. The contractor has 45 working days to complete the project. It is anticipated that the project will start later this summer, but material delays could result in a delay in the start of the project. BUDGET IMPACT: There are sufficient funds budgeted in the Storm Water Utility fund (Fund 18) and the Grants fund (Fund 13) for this work in the 2022 budget. 22-3026 ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: AJG Page 2 of 2 SUPPORTING DOCUMENTS: 1.Vendors contacted 2.Bid Tabulation VENDORS CONTACTED: Brandt Construction, Milan, IL Laverdiere Construction, Macomb, IL Lockwood Excavating, Galesburg, IL Illinois Civil Contractors, Inc., East Peoria, IL Hein Construction Co., Galesburg, IL Valley Construction Co., Rock Island, IL Otto Baum Co., Morton IL Phoenix Corporation, Port Byron, IL Miller’s Trucking & Excavating, Silvis, IL McCarthy Improvement, Davenport, IA Miller & Son Construction Co., Mackinaw, IL County Contractors, Inc., Quincy, IL CITY OF GALESBURG Purchasing Operating Under Council- Manager Government Since 1957 South St. Storm Sewer Reconstruction (rebid) BIDDER NAME: Section: 20-01302-22-SS BIDDER ADDRESS: Bid Date: 7/8/2022 CITY/STATE/ZIP: ATTENDED BY: MILLER/GAVIN UNIT UNIT UNIT QTY UNIT ITEM PRICE TOTAL PRICE TOTAL PRICE TOTAL 312 CY TRENCH BACKFILL 42.00$ 13,104.00$ 75.00$ 23,400.00$ 110.00$ 34,320.00$ 485 SY GEOTECHNICAL FABRIC FOR GROUND STABILIZATIO 2.50$ 1,212.50$ 3.50$ 1,697.50$ 1.00$ 485.00$ 121 SY AGGREGATE BASE COURSE, TYPE B 2"3.40$ 411.40$ 21.00$ 2,541.00$ 5.00$ 605.00$ 485 SY AGGREGATE BASE COURSE, TYPE B 6"9.50$ 4,607.50$ 18.00$ 8,730.00$ 15.00$ 7,275.00$ 485 SY PORTLAND CEMENT CONCRETE BASE COURSE 6"103.50$ 50,197.50$ 115.00$ 55,775.00$ 177.00$ 85,845.00$ 5 TON AGGREGATE SURFACE COURSE, TYPE B 31.00$ 155.00$ 225.00$ 1,125.00$ 50.00$ 250.00$ 219 LBS POLYMERIZED BITUMINOUS MATERIALS (TACK COAT 5.70$ 1,248.30$ 8.50$ 1,861.50$ 9.00$ 1,971.00$ 41 TON POLYMERIZED HOT-MIX ASPHALT SURFACE COURSE 172.50$ 7,072.50$ 750.00$ 30,750.00$ 750.00$ 30,750.00$ 121 SY PORTLAND CEMENT CONCRETE DRIVEWAY 6"103.50$ 12,523.50$ 110.00$ 13,310.00$ 228.00$ 27,588.00$ 934 SF PORTLAND CEMENT CONCRETE SIDEWALK 4 INCH 13.80$ 12,889.20$ 15.00$ 14,010.00$ 16.00$ 14,944.00$ 259 SF PORTLAND CEMENT CONCRETE SIDEWALK 6 INCH 23.00$ 5,957.00$ 25.00$ 6,475.00$ 25.00$ 6,475.00$ 485 SY PAVEMENT REMOVAL 12.00$ 5,820.00$ 20.00$ 9,700.00$ 12.00$ 5,820.00$ 112 SY DRIVEWAY PAVEMENT REMOVAL 10.00$ 1,120.00$ 20.00$ 2,240.00$ 12.00$ 1,344.00$ 354 FOOT COMBINATION CURB AND GUTTER REMOVAL 6.00$ 2,124.00$ 20.00$ 7,080.00$ 5.00$ 1,770.00$ 78 SQ FT SIDEWALK REMOVAL 2.00$ 156.00$ 20.00$ 1,560.00$ 2.00$ 156.00$ 152 FOOT STORM SEWERS, CLASS A, TYPE 2 60"396.40$ 60,252.80$ 750.00$ 114,000.00$ 900.00$ 136,800.00$ 161 FOOT STORM SEWERS, CLASS B, TYPE 2 60" RND EQ 579.80$ 93,347.80$ 820.00$ 132,020.00$ 950.00$ 152,950.00$ 10 FOOT STORM SEWERS, CLASS B, TYPE 2 18"196.60$ 1,966.00$ 450.00$ 4,500.00$ 150.00$ 1,500.00$ 58 FOOT STORM SEWER REMOVAL 15"25.00$ 1,450.00$ 100.00$ 5,800.00$ 100.00$ 5,800.00$ 144 FOOT STORM SEWER REMOVAL 54"45.00$ 6,480.00$ 120.00$ 17,280.00$ 250.00$ 36,000.00$ 2 EACH INLETS, TYPE A, TYPE 3 FRAME AND GRATE 2,890.50$ 5,781.00$ 4,500.00$ 9,000.00$ 3,500.00$ 7,000.00$ 1 EACH MANHOLES, TYPE A, 8'-DIAMETER, TYPE 1 FRAME, C 17,340.80$ 17,340.80$ 22,500.00$ 22,500.00$ 20,000.00$ 20,000.00$ 2 EACH MANHOLES, TYPE A, 9'-DIAMETER, TYPE 1 FRAME, C 22,274.30$ 44,548.60$ 27,000.00$ 54,000.00$ 30,000.00$ 60,000.00$ 1 EACH MANHOLES, TYPE A, 10'-DIAMETER, TYPE 1 FRAME,38,288.50$ 38,288.50$ 39,900.00$ 39,900.00$ 40,000.00$ 40,000.00$ 2 EACH MANHOLES TO BE ADJUSTED 950.00$ 1,900.00$ 2,000.00$ 4,000.00$ 1,500.00$ 3,000.00$ 2 EACH REMOVING INLETS 750.00$ 1,500.00$ 1,400.00$ 2,800.00$ 500.00$ 1,000.00$ 354 FOOT CONCRETE CURB TYPE B 57.50$ 20,355.00$ 60.00$ 21,240.00$ 138.00$ 48,852.00$ 1 L SUM MOBILIZATION 21,900.00$ 21,900.00$ 50,000.00$ 50,000.00$ 55,000.00$ 55,000.00$ 1110 SF BRICK SIDEWALK REMOVAL 6.00$ 6,660.00$ 10.00$ 11,100.00$ 2.00$ 2,220.00$ 1 L SUM TRAFFIC CONTROL AND PROTECTION, (SPECIAL)9,312.50$ 9,312.50$ 7,500.00$ 7,500.00$ 5,000.00$ 5,000.00$ 1 L SUM CONSTRUCTION LAYOUT 4,500.00$ 4,500.00$ 5,000.00$ 5,000.00$ 5,000.00$ 5,000.00$ 48 FOOT STORM SEWER, WATER MAIN QUALITY, 15"178.70$ 8,577.60$ 325.00$ 15,600.00$ 260.00$ 12,480.00$ 1193 SF AGGREGATE BASE COURSE, TYPE B 2" (SPECIAL)2.90$ 3,459.70$ 2.50$ 2,982.50$ 2.00$ 2,386.00$ 334 SY TOPSOIL, EXCAVATE AND PLACE 4.00$ 1,336.00$ 95.00$ 31,730.00$ 15.00$ 5,010.00$ 334 SY LANDSCAPING 2.44$ 814.96$ 30.00$ 10,020.00$ 10.00$ 3,340.00$ 80 SF REMOVE AND RELAY BRICK SIDEWALK 46.00$ 3,680.00$ 100.00$ 8,000.00$ 50.00$ 4,000.00$ 1 L SUM TREE REMOVAL 1,500.00$ 1,500.00$ 20,000.00$ 20,000.00$ 7,000.00$ 7,000.00$ 1 L SUM ABANDON SEWER 21,120.00$ 21,120.00$ 60,000.00$ 60,000.00$ 20,000.00$ 20,000.00$ TOTAL COST 494,669.66$ 829,227.50$ 853,936.00$ Bid Bond Bid Bond Legacy Corporation of Illinois Miller Trucking Laverdiere Construction Inc 16322 Barstow Road 3303 John Deere Road 4055 W Jackson Street East Moline, IL 61244 Silvis, IL 61282 Macomb, IL 61455 _________________________________________________________________________________________________________________________________________________________________________________________ TRAFFIC ADVISORY COMMITTEE JULY 2022 REPORT MISSION: To provide technical recommendations for policy decisions by the City Council in order to create safe, efficient, serviceable streets for residents, visitors, and public safety operation 22-09> Request to address speeding concerns on E. Main St. near Allens Ave.. (Ward 2, Ald. Dennis) • A request was made by a resident to address speeding concerns on E. Main St. near the intersection with Allens Ave. • The request stated that pulling on to E. Main St. from Allens Ave. in the morning is difficult due to traffic speeding on E. Main St. They also stated that the property on the SW corner of Main and Allens Ave. partially blocks the view of motorists, requiring them to creep out onto Main St. to see oncoming vehicles. • Their request asked that a radar feedback sign be installed to slow traffic. • The speed limit on Main Street is 30 mph in this area, specifically between Chamber St. and Duffield Ave. • At the June meeting, the Committee discussed that speeding may be an issue at this location based on some of the enforcement that the Police Department has done in that area. Speed data had not been collected at the time of the meeting. If speeding is common, a permanent measure, such as installing a radar feedback sign could be an option. • Speed statistics were collected over a period from 6/17 to 6/19. The 85th percentile speed was 45 mph and the 10 mph pace was 35-44 mph. According to the data, 95% of vehicles were traveling in excess of 30 mph. • The Police Department ran a 2-week enforcement action on E. Main Street at this location. They issued 25 citations, 2 arrests, and impounded 1 vehicle. • Crash reports were reviewed for the last 3 years at the intersection of Allens Ave. and Main Street. There were no crashes in that period related to vehicles pulling out from Allens Ave. onto Main Street. While the site distance is restricted some as the resident pointed out, it has not resulted in any crashes. There were 2 crashes in that time related to vehicles turning from Main Street onto Allens Ave. and striking opposing traffic on Main Street. • The Committee discussed that based on the speed data and enforcement results, speeding is an issue in this area. Most likely due to the conditions of the roadway being wider, and the downhill grade. Motorists feel comfortable travelling at that speed. However, the crash data does not support that the speed that vehicles are traveling is resulting in increased crashes. Therefore, while installing a radar feedback sign may slow vehicles down and lower the number of violations, there does not appear to be a significant crash issue that needs to be addressed near Allens Ave. • As this is a State route, it was decided that IDOT should be consulted on the matter before a final decision is made. IDOT will be contacted to discuss whether there _________________________________________________________________________________________________________________________________________________________________________________________ needs to be a change to the speed limit, or if efforts should be made to slow vehicles down. This issue will be discussed again at a future meeting. Location Map Recommendation: Consult with IDOT regarding the results of the speed study and the crash history to determine if any changes need to be made. ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by MJF Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Renew a service contract between the City of Galesburg Transit and Carl Sandburg College (CSC) to provide students, faculty, and staff unlimited rides September of 2022 through August of 2023. SUMMARY RECOMMENDATION: City of Galesburg’s Public Transportation Advisory Commission held a meeting on July 14, 2022, and unanimously recommended approval of the bus pass program with The City of Galesburg and Carl Sandburg College. The City Manager, Director of Community Development and Transit Manager concur with their recommendation. The creation of a service contract between these entities will make more State funds available to fund transit for the City. BACKGROUND: This service contract allows the payment from CSC to be counted as local match rather than program revenue. As local match, the contract amount will allow the City to utilize more of the Downstate Operation Assistance Program (DOAP) funds allocated by the State of Illinois. DOAP funds cover 65% of all transit operating costs for the City. This service contract would not change any routes or frequency thereof to the CSC campus. All currently enrolled CSC students, faculty and staff will continue to have unlimited access to all City of Galesburg Transit routes during all City of Galesburg Transit operating hours between September 2022 and August 2023. Students, faculty, and staff will continue to use their CSC Student/Employee ID to access the buses and CSC will issue new ID's (for new students) and a distinctive sticker that is not able to be replicated for current students. The estimated CSC ridership for 2022 – 2023 is estimated at 6,000. At $0.40 per ride, it is estimated that the cost would be $2,400.00 for the year. If approved, City of Galesburg Transit will track the ridership of CSC students between September 2022 and August 2023. At the end of the contract, the data gathered will be evaluated and a proposed contract amount would be considered by PTAC and City Council for the 2023- 2024 CSC school year. BUDGET IMPACT: Decrease in City’s contribution to Paratransit and Bus Subsidy budgets. $2,400.00 will be recorded as IDOT local match, allowing increased requisition payments from DOAP funds. SUPPORTING DOCUMENTS: 1. Carl Sandburg College Service Contract PURCHASE OF SERVICE AGREEMENT This agreement made this ______ day of _____ _____ , 2022 by and between the City of Galesburg (“CITY”) and Carl Sandburg College (“RECIPIENT”). WHEREAS, it is the mutual concern of the parties hereto that the transportation services provided hereunder be of high professional quality; and WHEREAS, CITY contracts with PROVIDER to provide transportation services within the City of Galesburg; and WHEREAS, RECIPIENT desires to provide transportation services to students and staff of their institution. NOW THEREFORE, the parties hereto agree as follows: 1. This agreement shall become effective immediately. This agreement shall cover 2021-2022 Carl Sandburg College school year. 2. Service eligible for delivery under this agreement would be the transporting of RECIPIENT’S current students and employees on fixed-route bus service within the City of Galesburg, IL. 3. RECIPIENT will compensate CITY for services described in the AGREEMENT at $2400.00 for the 2022-2023 Carl Sandburg College school year. Carl Sandburg College students, faculty, and staff will not be charged for rides during the term of this 4. CITY will notify RECIPIENT if for any reason the regular routes cannot be made. 5. The Coordinator of Student Life of Carl Sandburg College, the Transit Manager, Operations Manager and the Transit Assistant of the City of Galesburg will work directly together to handle overall operations of the AGREEMENT. 6. The AGREEMENT and any addenda constitute the entire agreement between the parties. If any provision of the AGREEMENT is in conflict with the laws of the State of Illinois or the United States of America, said provision shall be considered invalid and the remaining provisions shall remain in force. 7. This Agreement shall not be assignable, except at the written consent of all parties hereto, and it shall extend to and be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 8. Each party to this Agreement agrees to defend, indemnify, save and hold harmless the other (and each of their respective directors, officers, agents and employees) from and against all liabilities, suits, obligations, claims, demands, damages, fines, costs and expenses (including reasonable attorney’s fees) arising under this Agreement to the extent that such are attributable, directly or indirectly, to the indemnifying party’s negligence, error, omission or intentional act. An indemnifying part’s negligence, error, omission or intentional act, as that phrase is used herein, includes the negligence, error, omission or intentional act of its officers, agents and employees. This provision shall survive the termination of this Agreement. These provisions shall survive the termination of this Agreement. 9. The TERM of this agreement is for the period of September 1, 2022 through August 31, 2023. Executed this ____________________ day of _______________ 20 _____. APPROVED: ___________________________________ _______________________ DATE ___________________________________ _______________________ DATE ___________________________________ _______________________ DATE ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: BAN Page 1 of 1 CITY OF GALESBURG COUNCIL LETTER JULY 18, 2022 AGENDA ITEM: Amended 2022 Salary Schedule (Exempt) SUMMARY RECOMMENDATION: The Interim City Manager, Interim Director of Parks and Recreation and City Attorney / Administrative Services Director recommend approval of the amended 2022 salary schedule. BACKGROUND: Currently, the Recreation Division is led by a Recreation Supervisor (20EX) and a Recreation Coordinator (15EX). These two positions are responsible for oversight of facilities, programming, and staff, with the Recreation Coordinator reporting to the Recreation Supervisor. Last month, the Recreation Supervisor resigned and accepted a new position out of state. After study of the organization, the Interim Parks and Recreation Director has recommended that we equalize these two positions and have them both report to the Parks and Recreation Director. The salary difference between these two structures will depend on the step level of the newly hired Recreation Supervisor but should be less than a $5,000 increase annually. Current Structure Proposed Structure 1 Rec Coordinator (15 EX) 0 Rec Coordinator (15EX) 1 Rec Supervisor (20 EX) 2 Rec Supervisors (18EX) One Recreation Supervisor will focus on athletics and aquatics and the other Rec Supervisor will focus on community programming and special events. It is anticipated that the current Recreation Coordinator will be promoted into one of the two vacant Recreation Supervisor positions. The other position will be posted for internal and external recruitment. Based on the above, two changes in the salary schedule are presented for consideration by the City Council. The first is the elimination of the Recreation Coordinator position (15EX). The second is a reduction in pay range for the Recreation Supervisor from 20EX to 18EX. BUDGET IMPACT: Sufficient funds are available in the 2022 budget and the change would be included in the draft 2023 budget. SUPPORTING DOCUMENTS: 1.Amended 2022 Salary Schedule (Exempt) 2.Job Description 22-4067 8/1/2022 Range Step A Step B Step C Step D Step E Step F Step G Step H Step I Step J Step K15 EX44,128.55 45,227.41 46,376.19 47,524.98 48,723.72 49,922.45 51,171.1552,444.80 53,768.41 55,116.99 56,490.5517 EX48,424.03 49,647.75 50,871.46 52,145.12 53,443.76 54,792.33 56,165.8957,564.42 59,012.89 60,486.35 61,984.7718 EX50,746.59 52,020.25 53,318.89 54,642.49 56,016.03 57,414.57 58,838.0960,311.52 61,809.95 63,358.31 64,956.6519 EX53,218.99 54,567.59 55,916.14 57,314.68 58,763.16 60,211.64 61,735.0363,258.43 64,856.74 66,480.03 68,128.3120 EX55,716.37 57,114.89 58,538.39 60,011.83 61,510.26 63,033.66 64,607.0166,230.29 67,878.58 69,576.77 71,324.9421 EX58,463.48 59,911.94 61,410.36 62,958.75 64,532.07 66,130.41 67,803.6469,476.88 71,225.05 72,998.17 74,821.2522 EX61,210.58 62,733.99 64,307.32 65,905.64 67,553.90 69,252.13 70,975.2972,748.43 74,571.52 76,419.57 78,342.5423 EX64,157.49 65,755.80 67,404.05 69,077.30 70,800.48 72,573.63 74,396.7076,244.76 78,167.73 80,115.67 82,113.5824 EX67,254.23 68,927.45 70,650.64 72,423.78 74,221.88 76,094.91 77,992.9179,940.88 81,938.77 83,986.60 86,084.4126 EX73,922.21 75,770.26 77,668.26 79,591.23 81,589.12 83,636.97 85,709.7987,857.53 90,055.23 92,302.87 94,625.4227 EX77,618.32 79,541.28 81,539.18 83,587.02 85,659.84 87,807.58 90,005.2892,252.90 94,550.50 96,923.02 99,345.4528 EX81,449.20 83,536.68 85,625.10 87,765.73 89,959.87 92,208.86 94,514.0996,876.93 99,298.85 101,781.32 104,325.8529 EX85,240.28 87,373.04 89,540.78 91,778.41 94,085.97 96,428.52 98,840.98101,288.40 103,840.71 106,427.98 109,085.1931 EX93,726.36 96,073.89 98,471.37 100,918.80 103,466.10 106,038.40 108,685.62 111,407.75 114,204.80 117,051.81 119,973.7332 EX98,471.35 100,918.80 103,466.10 106,038.40 108,685.62 111,407.75 114,204.80 117,051.81 119,973.73 122,973.08 126,047.42 33 EX103,394.92 105,964.75 108,639.41 111,340.32 114,119.90 116,978.15 119,915.05 122,904.40 125,972.42 129,121.74132,349.79 34 EX108,272.30 110,973.21 113,752.79 116,563.79 119,574.15 122,484.85 125,552.88 128,699.55 131,924.90 135,202.71138,585.40 Pay Ranges and Classification Titles Pay Ranges and Classification TitlesRange Title Range Title15 EX GIS Analyst17 EX Executive Assistant Information Systems SupervisorStaff Accountant Project Manager IRecreation Supervisor Code Compliance SupervisorBenefits & Insurance Coordinator Housing Program CoordinatorHuman Resources Generalist Park SuperintendentGeneral Inspector Assistant Finance DirectorGolf Professional Project Manager IIPurchasing Agent Transit Manager27 EX Water SuperintendentAssociate Planner 29 EX Director of Parks and Recreation9-1-1 Coordinator City EngineerGarage Superintendent Director of Community DevelopmentNetwork Administrator Director of Finance & Information SystemsTransit Operations Supervisor 33 EX Director of Public Works34 EXCity Attorney / Administrative Services DirectorDeputy City Clerk23 EX24 EXExempt Salaried Personnel (EX) 22 EX20 EX19 EX18 EX26 EX31 EX GENERAL DESCRIPTION Responsible for the development, supervision, implementation, training and overall management of assigned recreation programs, facilities, and staff. This position collaborates with all supervisory staff to help manage the Parks and Recreation Department. ESSENTIAL FUNCTIONS Assists in the development, planning, implementation, supervision, scheduling and promotion of recreational programs, activities, and special events. Responsible for assigned facilities and equipment operations. Facility operations include supervision and scheduling of staff, facilities, and maintenance. Recruit, train, supervise, schedule, manage, discipline, evaluate, and communicate with all staff assigned to the Recreation Supervisor Assists in marketing and public relations work for the department. Serves as a liaison with other departments and divisions, public, community groups, and organizations. Responsible for budgeting in prescribed areas, including accounting for revenues and expenditures. Review and approve payroll hours in assigned area to ensure accuracy and rate of pay. Collaborates with office staff to ensure program information is entered properly in the recreation software system and publications. Ensure financial accountability, and complete proper forms and paperwork required for the position in the assigned areas. Monitor recreation programs, facilities, and staff; including evenings, weekends, and holidays as necessary. Additional job-related duties or tasks as assigned by the Director of Parks and Recreation. DATE: July 12, 2022 POSITION: Recreation Supervisor DEPARTMENT: Parks and Recreation REPORTS TO: Director of Parks and Recreation SALARY RANGE: 18 EX ________________________________________________________________________________________________________________ This description is intended to indicate the kinds of tasks and levels of difficulty that will be required of this position and shall not be construed as declaring what the specific duties and responsibilities of any particular position shall be. It is not intended to limit or in any way modify the right of any supervisor to assign, direct, and control the work of employees under his/her supervision. The use of a particular expression or illustration describing the duties shall not be held to exclude other duties not mentioned that are of similar kind or level of difficulty. EDUCATION & EXPERIENCE Bachelor’s degree in Parks and Recreation Administration or a closely related field which would provide the required knowledge, skills, and experience. Two years related full-time job experience in the recreational field, including supervisory experience, is preferred, along with working knowledge in Facility Management being highly desirable. Valid certifications required for the position within six months of hire. PERSONAL QUALIFICATIONS AND ABILITY Ability to follow directions and work with minimal supervision. Ability to stimulate community interests in recreation programs and activities. Ability to absorb information and make decisions based on that information. Ability to establish and maintain working relationships with other employees, business contacts and the public. Ability to communicate effectively through strong written and verbal skills with co-workers and the public. To be knowledgeable of the City's safety procedures and practices. Ability to maintain a clean driving record and State of Illinois Driver’s license. Employees holding this position may be required to perform other job-related duties or tasks as assigned by the Director of Parks and Recreation. ___________________________________________________________________________________________________________________________________________________________________________________________ Prepared by: RLI Page 1 of 1 COUNCIL LETTER CITY OF GALESBURG JULY 18, 2022 AGENDA ITEM: Approve annual maintenance agreement with ProPhoenix Corporation for the Galesburg Police Department. SUMMARY RECOMMENDATION: The City Manager, Police Chief, and Purchasing Agent recommend approving the annual maintenance agreement for ProPhoenix Corporation. for the continued support of the various modules of the proprietary software utilized by the department in the amount of $82,775.39 BACKGROUND: Similar to the City’s financial software package, the Records Management System package utilized by the Galesburg Police Department for public safety purposes requires an annual service agreement. The agreement ensures that the RMS and CAD products perform properly. The system allows the officer to see the status of all calls as well as the status of other officers in the field. The ability for an officer to retrieve a call and see additional details of the call provided by the call taker, allows them to be prepared prior to their arrival. The system also provides an officer the ability to complete a police report in the field as well as having the ability to make inquiries into the system to obtain details of previous police reports. This software contains a state interface for inquiry on license status and registration data. This approval will be in force from September 14, 2022 through September 13, 2023. BUDGET IMPACT: The cost for this agreement is annually budgeted. The general fund responsibility of this expense is $27,942.71 paid out of the Police and Fire Departments budgets. The remaining amount of $54,832.68 will be paid for by the City and then reimbursed by the Emergency Telephone Systems Board (ETSB) and Knox County. SUPPORTING DOCUMENTS: 1. ProPhoenix invoice 22-4068 TOWN OF THE CITY OF GALESBURG Date:July 18, 2022 Agenda Number:22-9016 TOWN FUND $5,714.72 GENERAL ASSISTANCE FUND $4,842.88 IMRF FUND $2,557.69 SOCIAL SECURITY/MEDICARE FUND $863.03 LIABILITY FUND $1,066.12 AUDIT FUND $1,000.27 TOTAL $16,044.71