Agenda & Packet

There will be a regular meeting of the Village Board on May 18, 2026, at 7:00 p.m. The meeting will be held at Village Hall, 419 Richmond Road; Kenilworth, IL. The public may attend in person or by utilizing the following link: TEAMS MEETING LINK If you do not have access to a computer, you may attend via telephone: +1 872-242-8055 Meeting ID: 799 485 058# Village Board Meeting Regular Meeting Agenda June 15, 2026, at 7:00 p.m. I. Call to Order / Roll Call II. Approval of Minutes A. Village Board – May 18, 2026 III. Village President’s Report A. 250th Anniversary B. Beach Improvement Project Update (Bulley and Andrews) C. Zoning Code Project Update IV. Approval of Warrant List V. Regular Scheduled Business A. Items for Consideration by Omnibus Vote 1. Ordinance Declaring Certain Village Property as Surplus and Authorizing the Sale or Disposal Thereof (Police Equipment) 2. Adoption of a Resolution Authorizing the Renewal of a Professional Services Agreement with InterDev, LLC, of Roswell, Georgia for Information Technology Services 3. Resolution Ratifying Change Order Numbers 5 and 6 for Construction Manager at Risk Services for the Water Plant Repurposing and Lakefront Improvements Project with Bulley and Andrews, Inc., Chicago, Illinois to Increase the Contract Price by $157,686.75 for a Guaranteed Maximum Price Value of $7,684,882.58 Village of 1 The Village of Kenilworth is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting or who have questions regarding the accessibility of the meeting or the facilities are requested to contact Kathy Thake at 847-251-1666 promptly to allow the Village to make reasonable accommodations for those persons. B. Items for Consideration by Individual Vote 4. Acceptance of the Annual Financial Report for the Period January 1 through December 31, 2025 (Martha Trotter, Sikich) 5. Consideration of a Certificate of Appropriateness and a Special Use Permit for a Preliminary Planned Unit Development for RED3 Development LLC Concerning the Property Located at 515-519 Park Drive VI. Report from Staff A. Community Development B. Finance C. Police D. Public Works A. Legal Counsel B. Village Manager VII. Business from the Public VIII. Adjourn 2 VILLAGE OF 1 2 3 KENILWORTH, IL 4 5 Village Board of Trustees 6 Meeting 7 May 18, 2026 8 9 Call to Order 10 11 President Kaz called to order the meeting of the Board of Trustees of the Village of Kenilworth at 7:00 p.m. on 12 May 18, 2026. 13 14 Roll Call 15 16 President Kaz requested a roll call, and the results were as follows: 17 18 Trustees: 19 Trustee Tim Ransford Present 20 Trustee Christopher Ottsen Present (Remote, Voting*) 21 Trustee Amy Hannus Present 22 Trustee John Gottschall Present 23 Trustee Matthew Lojkovic Present 24 Trustee Joseph Vitu Present 25 President Cecily Kaz Present 26 27 *President Kaz indicated that she was in receipt of a request from Trustee Ottsen to attend the meeting 28 electronically in accordance with the Electronic Meeting Attendance Policy. As a quorum is physically present, 29 the Trustee will be authorized to attend electronically unless a motion is made and passed by a two-thirds 30 majority of those physically present to deny the request. Hearing no such motion, President Kaz deemed the 31 Trustee Present as a voting member. 32 33 A quorum was present in person. 34 35 Commander Ryan Glew 36 Anna Simpson 37 Pam Katcha 38 John Schwartz 39 Jim Nash 40 Jill Delaney 41 Bob Delaney 42 43 V V I L L A G E O F V I L L A G E O F l l a g e o f 3 Others Recorded as in Attendance: 1 2 Village Officials and Staff: 3 Michael Gagnon Village Clerk 4 Kathy Thake Village Manager 5 Heather McFarland Assistant to the Village Manager 6 Greg Jones Village Attorney 7 Donicio Silva Village Police Chief 8 Jordan Schmidt Management Analyst 9 Molly Burns Management Analyst 10 Donald Leicht Superintendent of Public Works 11 12 Others, signing in as displayed in Participant List: 13 14 Approval of Minutes 15 16 President Kaz asked if there any questions or comments regarding the following minutes: 17 18 A. Village Board – April 20, 2026 19 20 Hearing none, President Kaz then asked for a motion to approve the minutes as presented. Trustee Ransford 21 so moved, and Trustee Gottschall seconded the motion. 22 23 A roll call vote was taken as follows: 24 25 For: Ransford, Ottsen, Hannus, Gottschall, Lojkovic, Vitu 26 27 Opposed: None 28 29 The roll call tally was six votes in favor, and none opposed. President Kaz declared the minutes approved. 30 31 Village President’s Report 32 33 President Kaz began her remarks by thanking the many Village officials and staff who contributed to the 34 success of Kenilworth’s annual Memorial Day celebration. She noted the strong level of attendance and 35 recognized contributors for their popular amenities and their level of organization which many residents 36 complimented. She noted the long history of successful celebrations in Kenilworth traditionally a week before 37 the National Memorial Day weekend upcoming and concluded by wishing everyone an enjoyable observance. 38 39 She went on to address the status of the Lakefront Improvement Project by confirming that weather-related 40 construction delays have resulted in a postponement of opening with full beach amenities until the end of 41 June but noted a partial opening of the overlook should take place as early as this weekend. 42 43 Approval of Warrant List 44 45 President Kaz then asked Trustee Gottschall to report on the Warrant List. Trustee Gottschall highlighted 46 Class B payments to be ratified as payroll related, and Class A warrant payments to be approved highlighting 47 charges related to the Lakefront Improvement Project, police dispatch services, and street resurfacing. 48 4 1 Hearing no further comments from the Board, President Kaz asked for a motion to approve the warrants as 2 presented. Trustee Lojkovic so moved, and Trustee Vitu seconded the motion to approve the Class A warrants 3 in the amount of $1,065,016.43 and to ratify the Class B warrants in the amount of $146,952.26. 4 5 A roll call vote was taken as follows: 6 7 For: Ransford, Ottsen, Hannus, Gottschall, Lojkovic, Vitu 8 9 Opposed: None 10 11 The roll call tally was six votes in favor, and none opposed. President Kaz declared the warrants approved and 12 ratified. 13 14 Regular Scheduled Business 15 16 President Kaz then introduced Regular Scheduled Business beginning with Items for Consideration by 17 Omnibus Vote and reading them aloud as follows: 18 19 A. Items for Consideration by Omnibus Vote 20 1. Resolution Approving a Professional Services Agreement with Ciorba Group of Chicago, IL 21 for the Design of the Abingdon Avenue, Robsart Road, and Tudor Place Water Main 22 Replacement Projects in the Amount of $85,052.50 23 24 2. Resolution Approving a Professional Services Agreement with Gewalt Hamilton Associates, 25 Inc. of Vernon Hills, IL for the Design of the Oxford Road Reconstruction Project in the 26 Amount of $66,500 27 28 3. Resolution Approving a Professional Services Agreement with Advanced Tree Care, Inc. of 29 Lincolnshire, IL for As-Needed Tree and Shrub Removal, Stump Removal, and Tree 30 Trimming Services in the Amount Not to Exceed the Annual Budget for Tree Removals 31 32 4. Resolution Approving a Façade Improvement Grant Agreement with Green Bay Enterprise, 33 L.L.C., Concerning 400-408 Green Bay Road and 503-509 Park Drive 34 35 President Kaz then asked whether any Trustees would like to take any item out of Omnibus Consideration. 36 They did not. She then asked whether there were any questions from the Board about any of these items. 37 There were none. President Kaz then recognized resident Bob Delaney who asked that item #4 be clarified. 38 President Kaz explained the Village’s Façade Improvement Grant Program and noted that the grant would be 39 used to enhance structure exterior lighting. Trustees then clarified the status of the item relative to the 40 Architectural Review Board (ARC). Assistant to the Village Manager, Heather McFarland responded that the 41 item had been recently approved by the ARC. Hearing no further questions, President Kaz asked for a motion 42 to approve the resolutions as stated. Trustee Gottschall so moved, and Trustee Hannus seconded the motion. 43 44 A roll call vote was taken as follows: 45 46 For: Ransford, Ottsen, Hannus, Gottschall, Lojkovic, Vitu 47 48 5 Opposed: None 1 2 The roll call tally was six votes in favor, and none opposed. President Kaz declared the resolutions approved. 3 4 Turning to Items for Consideration by Individual Vote, President Kaz read the first item aloud. 5 6 B. Items for Consideration by Individual Vote 7 5. Resolution Approving a Professional Services Agreement with NewGen Strategies & 8 Solutions in the Amount of $24,000 to Complete a Water & Sewer Rate Study 9 10 She then asked Management Analyst Jordan Schmidt to report on this item. Mr. Schimdt recounted the 11 introduction of this item as a part of the FY 2026 budgeting discussion. He cited contributing factors of an 12 aging water rate schedule and upcoming infrastructure needs as reasons to review the existing rate schedule 13 with an eye toward addressing these needs while still maintaining fiscal integrity. 14 15 He went on to recount the formal issuance of a Request for Proposals (RFP), the four responses received, the 16 three firms personally interviewed, and the selection of NewGen Strategies & Solutions (NewGen). President 17 Kaz noted the wide disparity in cost among the four proposals received and asked Mr. Schmidt to comment. 18 Mr. Schmidt cited the approaches the various responders employed to address the RFP likely contributed to 19 the disparity. He differentiated between a financial approach, a public works approach, and one using a 20 combination of the two. He indicated the NewGen’s approach fit the Village’s expectations for the project 21 and cited strong referrals from neighboring communities regarding the quality of NewGen’s work. Trustees 22 thanked Mr. Schmidt and clarified the scope of work to be undertaken by the vendor. Mr. Schmidt addressed 23 these questions to the Board’s satisfaction. 24 25 President Kaz then recognized resident Bob Delaney who asked Mr. Schmidt to describe the approach 26 NewGen utilized and why it was selected. Mr. Schmidt described the financial approach to the RFP taken by 27 NewGen and how it was the strongest fit with the Villages’s expectations for the work. 28 29 Hearing no further questions, President Kaz asked for a motion to approve the resolution. Trustee Lojkovic so 30 moved, and Trustee Hannus seconded the motion. 31 32 A roll call vote was taken as follows: 33 34 For: Ransford, Ottsen, Hannus, Gottschall, Lojkovic, Vitu 35 36 Opposed: None 37 38 The roll call tally was six votes in favor, and none opposed. President Kaz declared the resolution approved 39 and clarified the timetable for completion. Mr. Schmidt indicated a timeline of completion by the fall of FY 40 2026 in order to incorporate it into budget preparations for FY 2027. 41 42 Turning to the next agenda item, President Kaz announced that, at the request of the applicant, this item 43 would be continued until the June 15, 2026 Village Board Meeting. 44 45 6. Consideration of a Request for a Preliminary Plan for a Planned Unit Development and a 46 Certificate of Appropriateness at 515-519 Park Drive 47 48 6 President Kaz asked for a motion to continue the item as requested. Trustee Ransford so moved, and Trustee 1 Gottschall seconded the motion. 2 3 A roll call vote was taken as follows: 4 5 For: Ransford, Ottsen, Hannus, Gottschall, Lojkovic, Vitu 6 7 Opposed: None 8 9 The roll call tally was six votes in favor, and none opposed. President Kaz declared consideration continued. 10 11 President Kaz then recognized resident Bob Delaney who asked for clarification as to why the item was 12 continued. President Kaz explained that the Board was acceding to a request from the petitioner for a 13 Planned Unit Development (PUD) and Certificate of Appropriateness (COA) to have it continued. Mr. Delaney 14 thanked President Kaz for her explanation. Resident Jill Delaney cited her personal history with zoning 15 variances in Kenilworth always included the demonstration of hardship for the applicant should the variance 16 not be granted. She questioned why the Board continues to allow consideration of a zoning variance for this 17 applicant when there has been no demonstration on their part of existing hardship should it not be granted. 18 President Kaz cautioned against engaging in a discussion of matters better served once the matter is up for 19 consideration at June’s Village Board meeting but then offered perspective on the PUD process which goes 20 beyond her personal experience. She underscored the scrupulous adherence by the Village to that process 21 and assured her that decisions to continue consideration of the item are appropriate. Attorney Greg Jones 22 added that the PUD and COA processes offer options beyond hardship, making the process similar to but 23 different from residential zoning hence allowing for continuing consideration of the matter. Ms. Delaney then 24 expressed opposition to the PUD prompting President Kaz to end discussion apart from procedural matters 25 and encouraged Ms. Delaney to express her position through proper channels either in writing or personally 26 at the next Board meeting. Ms. Delaney thanked President Kaz for clarifying her options. 27 28 Turning to Reports from Staff, President Kaz asked Police Chief Silva to report. 29 30 Report from Staff 31 A. Community Development 32 B. Finance 33 C. Police 34 35 Chief Silva began his report by relating five instances of identity theft that were reported in the past month, 36 bringing the total for the year to 23 such incidents. He outlined steps the Kenilworth Police Department (KPD) 37 would take to raise awareness of this activity with residents. He reported a decline in traffic citations 38 speculating around possible causes and suggesting various solutions to each. He highlighted the consistency 39 and relevance of KPD messaging content, pointed to shifts in emphasis within the ongoing effort to promote 40 officer development within the ranks of the KPD that he felt will improve outcomes, described organization 41 efforts of the KPD evidence room, and outlined the status of the T.A.S.E.R. (Thomas A. Swift Electric Rifle) 42 training program that was being implemented. Trustees clarified the nature of the identity theft crimes taking 43 place. 44 45 Resident Bob Delaney inquired as to the impact of traffic citations fines and penalties on the Village’s annual 46 budget. Police Commander Ryan Glew responded that traffic citation activity is more designed to alter 47 undesirable behavior in drivers than to generate revenue of any significance. He cited that revenue flows to 48 7 the Cook County Court System make up the bulk of where the money generated gets spent. While some 1 money from violation fines and penalties flows back to the Village, it is a negligible amount. 2 3 D. Public Works 4 Superintendent of Public Works (PW) Don Leight highlighted the successful installation of plants to all Village-5 owned planters as well as around the Village Water Tower, recognized all the participants in the process and 6 thanked them for their participation, and announced the installation of newly donated commemorative 7 banners to enhance our Memorial Day Observance. 8 9 He then turned to upcoming PW activity. He reminded the Board that PW will begin testing of residential 10 sewer connections required by the Metropolitan Water Reclamation District through the introduction of a 11 harmless smoke to a reverse process discovery protocol (a.k.a. Smoke Testing), and summer road 12 maintenance projects in the area of Green Streets Phase I, and Green Streets Phase II. Trustees clarified the 13 long-term strategy for the maintenance projects, the protocol to be followed with a newly appointed 14 company to be used for storm damage response and emphasized how important it would be to communicate 15 to residents the need for and safety of smoke testing. A resident inquired as to how successful the permeable 16 pavers have been in addressing water runoff. Mr. Leicht praised their effectiveness and recounted routine 17 maintenance requirements. 18 19 E. Legal Counsel 20 No formal report 21 22 F. Village Manager 23 24 Manager Thake announced the intention to postpone a June Board of Trustees agenda item to the July Board 25 of Trustees meeting. 26 27 Business from the Public 28 29 President Kaz then asked whether there was any business from the public not included in the evening’s 30 agenda. There were none. 31 32 Adjourn 33 34 Having no further business, President Kaz asked for a motion to adjourn the meeting. Trustee Ransford so 35 moved, and Trustee Vitu seconded the motion. 36 37 A roll call vote was taken as follows: 38 39 For: Ransford, Ottsen, Hannus, Gottschall, Lojkovic, Vitu 40 41 Opposed: None 42 43 The roll call tally was six votes in favor, and none opposed. President Kaz declared the meeting adjourned at 44 7:37 p.m. 45 8 VILLAGE OF KENILWORTH RESOLUTION NO. 2026- RESOLUTION OF THE VILLAGE OF KENILWORTH IN SUPPORT OF THE ILLINOIS AMERICA250 COMMEMORATION WHEREAS, the United States of America will commemorate its 250th anniversary on July 4, 2026, marking a historic milestone in the nation’s history; and WHEREAS, on July 4, 1776, the Second Continental Congress formally adopted the Declaration of Independence, asserting the American colonies’ freedom from British rule and laying the foundation for the principles of democracy and self-governance; and WHEREAS, the U.S. Semiquincentennial Commission, known as the America250 Commission (america250.org) was established by Congress in 2016 to plan and orchestrate the 250th anniversary of the signing of the Declaration of Independence, aiming to engage all Americans in commemorating this historic event through educational initiatives. WHEREAS, the Illinois America250 Commission (ilamerica250.org) was established to develop, encourage and execute an inclusive commemoration and observance of the founding of the United States of America, and Illinois’ imperative role in the nation’s history; and WHEREAS, the Illinois America250 Commission encourages communities, libraries, schools, local governments, historical societies, cultural institutions and individuals of all ages to develop inclusive commemorations that reflect on Illinois’ role in the nation’s hi story and development; and WHEREAS, recognizing and supporting the Illinois America250 Commission will help ensure a meaningful and educational commemoration for all residents and future generations; and WHEREAS, the commemoration provides an opportunity to reflect on the state’s historical significance, honor the achievements of its people and inspire civic engagement; and WHEREAS, the Village of Kenilworth hereby formally supports the Illinois America250 Commission and its mission to commemorate our nation’s 250th anniversary. NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Kenilworth, Cook County, Illinois, expresses its support for the Illinois America250 Commission, and encourages all Illinois communities to organize and participate in local events leading up to and culminating on July 4, 2026, to celebrate America’s 250th anniversary. Approved this 15th day of June, 2026. AYES: NAYS: ABSENT: ABSTAIN: Approved this 15th day of June, 2026. Cecily Kaz Village President Attest: Michael Gagnon Village Clerk 9 Request for Board Action Agenda Item: IV – Warrant List Staff Contact: Katarzyna Thake, Administration Kathleen Morley, Lauterbach & Amen Subject: Approval of the Warrant List Summary: Warrants are presented for consideration and approval in two different classifications. Class A warrants are those payments which are submitted to the Village Board for review and approval. For these warrants, no payment has been issued. Class B warrants are payments that have already been made and are submitted to the Village Board for ratification. Employee payroll is typically included in the Class B warrants total when presented, but not shown on check listing since payroll is paid from the payroll account. Payments which are of particular note are highlighted on the warrant list. Policy: Village financial activity is governed by a combination of the Village Code and financial policies of the Village. Recommendation: The Village Manager submits the following for review and consideration: • Class A Warrant List (attached) totaling $1,057,544.59 - 74 disbursements • Class B Warrant List and Payroll totaling $128,726.94 o Class B Check Register = No Disbursements o Employee Payroll, May 21 $65,695.08 o Employee Payroll, May 7 $63,031.86 o Payroll expenses do not appear on the Class B Warrant List printout but are ratified with the Class B Warrants • Check Numbering: o Last check number approved – GEN 42266, 866(A) & 869 (E) – May 18th o Start/End Checks Class B - None o Start/End Check Class A - GEN 42267 - 42, 870(A) – 893(A) & 894(E) – 898(E) • Voided Checks and Cause o None Considered By: Date: Village Board 06/15/26 Village of 10 CHECK REGISTER FOR VILLAGE OF KENILWORTH CHECK DATE 06/10/2026 - 06/18/2026 BANK CODE: GEN - GENERAL OPERATING Check Date Bank Check Vendor Name Description Amount Bank GEN GENERAL OPERATING Check Type: ACH Transaction GEN 06/17/2026 GEN 870(A) ADDIS LAW GROUP PROSECUTION SERVICES - COURT - MARCH 20 350.00 PROSECUTION SERVICES - COURT - APRIL 20 175.00 PROSECUTION SERVICES - COURT - MAY 2026 350.00 875.00 06/17/2026 GEN 871(A) ADVANCE SWEEPING SERVICES, IN3RD SWEEP OF 10 MAY 1,993.99 4th SWEEP OF 10 JUNE 1,993.99 3,987.98 06/17/2026 GEN 872(A) AMAZON CAPITAL SERVICES OPEN HOUSE 2026 (COTTON CANDY & FREEZE 352.31 DISHWASHER PODS, GOPRO BRACKET, 2TB SSD 445.85 UPS SCADA SYSTEM (WATER TOWER) - EMERGA 1,101.45 1,899.61 06/17/2026 GEN 873(A) BULLEY & ANDREWS, LLC FY 26 PHASE 2 BIP CONSTRUCTION - PAYAPP 884,105.07 06/17/2026 GEN 874(A) CINTAS CORPORATION 2ND WEEK MAY UNIFORM RENTAL 51.81 4TH WEEK MAY UNIFORM RENTAL 51.81 3RD WEEK MAY UNIFORM RENTAL 51.81 1ST WEEK JUNE UNIFORM RENTAL 51.81 207.24 06/17/2026 GEN 875(A) CONVERGED DIGITAL NETWORKS LL VH & PW PHONE 062126-072026 376.00 VH & PW PHONE 072126-082026 376.00 752.00 06/17/2026 GEN 876(A) CRYSTAL MANAGEMENT & VILLAGE HALL, PD, & TRAIN STATION CLEAN 1,155.00 06/17/2026 GEN 877(A) DATA CENTER WAREHOUSE IT EQUIPMENT - NETWORK SWITCH 6,730.00 06/17/2026 GEN 878(A) DELTA DENTAL OF ILLINOIS - VI VISION BENEFITS - JUNE 2026 193.36 06/17/2026 GEN 879(A) DELTA DENTAL OF ILLINOIS VISI EMPLOYEE HIGH DEDUCTIBLE VISION BENEFIT 42.09 06/17/2026 GEN 880(A) FLOOD BROTHERS DISPOSAL DEBRIS PICK UP FOR STREET SWEEPINGS 981.35 06/17/2026 GEN 881(A) GEWALT HAMILTON ASSOC., INC APRIL 2026 GENERAL ENGINEERING SERVICES 3,265.05 APRIL 2026 PLAN REVIEW ENG SERVICES 3,712.15 APRIL 2026 BEACH ENG INSPECTIONS 185.00 7,162.20 06/17/2026 GEN 882(A) GRAINGER ELECTRICAL PART FOR STREET LIGHTS AND M 949.83 06/17/2026 GEN 883(A) INTERDEV, LLC CONTRACT IT SVC - MAY 2026 4,611.33 06/17/2026 GEN 884(A) J.G. UNIFORMS INC UNIFORMS- 4 SHIRTS, 3 PANTS YUNDT 587.49 UNIFORMS- 2 SHIRTS LIEBAU 192.95 UNIFORMS - SESKI PANTS/SHIRTS/BELT/HOLS 117.40 897.84 06/10/2026 11:20 AM Page: 1/5 11 CHECK REGISTER FOR VILLAGE OF KENILWORTH CHECK DATE 06/10/2026 - 06/18/2026 BANK CODE: GEN - GENERAL OPERATING Check Date Bank Check Vendor Name Description Amount Bank GEN GENERAL OPERATING Check Type: ACH Transaction GEN 06/17/2026 GEN 885(A) LANGTON GROUP 1 6" ROYAL RAIN DROP CRABAPPLE PLANTING 380.00 06/17/2026 GEN 886(A) LAUTERBACH & AMEN, LLP ACCOUNTING SERVICES - APRIL 2026 7,725.00 06/17/2026 GEN 887(A) MADISON NATIONAL LIFE LIFE INSURANCE - JUNE 2026 227.12 06/17/2026 GEN 888(A) MGT OF AMERICA CONSULTING, LLINTERIM COMMANDER GLEW CONTRACT (2/2/20 14,137.52 06/17/2026 GEN 889(A) PETER BAKER & SON CO ASPHALT FOR POTHOLE PATCHES 104.00 ASPHALT FOR POTHOLE PATCHES 66.95 170.95 06/17/2026 GEN 890(A) SAFE BUILT MAY 2026 BUILDING PLAN REVIEW AND INSPE 6,950.47 06/17/2026 GEN 891(A) SWANNC JULY 2026 WASTE TIP FEE 4,223.00 06/17/2026 GEN 892(A) T.Y. LIN INTERNATIONAL APRIL 2026 GREEN BAY RD PARKING STUDY 1,566.00 06/17/2026 GEN 893(A) TIM ZORDAN travel/meal reimbursement 22.19 Total ACH Transaction: 949,952.15 Check Type: EFT Transfer GEN 06/17/2026 GEN 894(E) DELUXE FOR BUSINESS CHECKS 484.10 06/17/2026 GEN 895(E) FIRST NATIONAL BANK OF OMAHA VEHICLE STICKER - UNMARKED SILVER FORD 160.50 SUPPLIES FOR OPEN HOUSE 2026 19.86 SUPPLIES FOR OPEN HOUSE 2026 125.39 SUPPLIES FOR OPEN HOUSE 2026 87.78 SUPPLIES FOR OPEN HOUSE 2026 47.92 441.45 06/17/2026 GEN 896(E) FIRST NATIONAL BANK OF OMAHA CONSTANT CONTACT 042126-052126 75.00 10 REAMS OF PRINTER PAPER 51.80 1 ROLL OF POSTCARD STAMPS FOR UB 61.00 MARCO ROMA FOR PW APPRECIATION WEEK 51.78 UB POSTAGE 366.00 INTERNET SERVICE VILLAGE HALL - MAY 202 547.95 FOXIT PDF (SALES TAX REFUND) (3.76) FOXIT PDF (SALES TAX REFUND) (3.36) FOXIT PDF (SALES TAX REFUND) (12.41) FOXIT PDF (SALES TAX REFUND) (0.69) FOXIT PDF (SALES TAX REFUND) (0.69) FOXIT PDF (SALES TAX REFUND) (0.69) FOXIT PDF (SALES TAX REFUND) (1.10) FOXIT PDF (SALES TAX REFUND) (0.69) FOXIT PDF (SALES TAX REFUND) (1.10) FOXIT PDF (SALES TAX REFUND) (0.69) FOXIT PDF (SALES TAX REFUND) (0.69) CREDIT CARD - REWARDS CREDIT (13.66) 1,114.00 06/17/2026 GEN 898(E) FIRST NATIONAL BANK OF OMAHA CONCRETE FOR MELROSE WATER MAIN BREAK 272.39 06/10/2026 11:20 AM Page: 2/5 12 CHECK REGISTER FOR VILLAGE OF KENILWORTH CHECK DATE 06/10/2026 - 06/18/2026 BANK CODE: GEN - GENERAL OPERATING Check Date Bank Check Vendor Name Description Amount Bank GEN GENERAL OPERATING Check Type: EFT Transfer GEN Total EFT Transfer: 2,311.94 Check Type: Paper Check GEN 06/17/2026 GEN 42267 American Vintage Home Check Request For Bond: BD26-0060 2,500.00 06/17/2026 GEN 42268 AT&T ADMIN/PW CELL PHONES 042626-052526 286.19 06/17/2026 GEN 42269 ATCO INTERNATIONAL HORNET SPRAY 1 CASE 178.70 06/17/2026 GEN 42270 Atomic Fire Protection LLC Check Request For Bond: BD25-0143 2,500.00 06/17/2026 GEN 42271 COMED BOOSTER PUMP STATION ELECTRIC 042926-05 340.80 PRESSURE REDUCTION STATION ELECTRIC 042 59.50 400.30 06/17/2026 GEN 42272 CONTAINED GARDEN INC FLOWER PLANTINGS ON GREEN BAY ROAD (TIF 3,610.00 06/17/2026 GEN 42273 CORE & MAIN LP CURB BOX REPAIR SUPPLIES 444.62 06/17/2026 GEN 42274 DAN SIMPSON Check Request For Bond: BD24-0122 2,500.00 06/17/2026 GEN 42275 DOOR SYSTEMS ASSA ABLOY PM ALL PW GARAGE DOORS 2,400.00 FABRICATE ROLLERS FOR DOOR AT PUBLIC WO 3,845.00 6,245.00 06/17/2026 GEN 42276 EMS MANAGEMENT & CONSULTANTS,AMBULANCE USER FEES - APRIL 2026 141.46 06/17/2026 GEN 42277 FIRE SAFETY CONSULTANTS, INC.KENILWORTH UNION CHURCH - 3RD SPRINKLER 185.00 06/17/2026 GEN 42278 GALLS UNIFIORMS- PANTS/BOOTS KULINSKI, BOOTS 431.26 LABEAU - 2 PACKS SOCKS 28.37 459.63 06/17/2026 GEN 42279 GRANT M + JENNIFER M. DIXTON Check Request For Bond: BD26-0009 450.00 06/17/2026 GEN 42280 HEART CERTIFIED AUTO CARE - W2012 FORD- OIL CHANGE, LEFT TIRE ROD, 3 990.00 615 OIL CHANGE 87.43 615- REPLACE HVAC MOTOR & MOTOR CONTROL 799.02 1,876.45 06/17/2026 GEN 42281 ILLINOIS STATE POLICE BOI BACKGROUND LIQUOR EVANS, CHICK 27.00 06/17/2026 GEN 42282 INTOXIMETERS POLICE SUPPLIES- INTOXIMETER DRYGAS (2) 438.50 06/17/2026 GEN 42283 KRAM DIGITAL SOLUTIONS, INC VEHICLE STICKER RENEWAL POSTCARDS & POS 610.00 BEACH PASSES 545.00 1,155.00 06/17/2026 GEN 42284 LEANNE YLITALO Check Request For Bond: BD26-0068 5,000.00 06/17/2026 GEN 42285 LECHNER AND SONS 4TH WEEK MAY MAT RENTAL TRAIN STATION 55.20 3RD WEEK MAY MAT RENTAL TRAIN STATION 55.20 1ST WEEK JUNE MAT RENTAL TRAIN STATION 55.20 165.60 06/17/2026 GEN 42286 LOUIS KEILER Check Request For Bond: BD24-0010 2,500.00 06/10/2026 11:20 AM Page: 3/5 13 CHECK REGISTER FOR VILLAGE OF KENILWORTH CHECK DATE 06/10/2026 - 06/18/2026 BANK CODE: GEN - GENERAL OPERATING Check Date Bank Check Vendor Name Description Amount Bank GEN GENERAL OPERATING Check Type: Paper Check GEN 06/17/2026 GEN 42287 LURVEY LANDSCAPE SUPPLY LURVEY BLUE GRASS SOD 77.00 06/17/2026 GEN 42288 MAPLE CABLE CONSTRUCTION INC NEW CONDUIT FOR DCU METER CABINET DEVON 2,175.00 CONDUIT INSTALLATION FOR STREET LIGHTS 4,890.00 CONDUIT INSTALLATION FOR STREET LIGHTS 4,770.00 11,835.00 06/17/2026 GEN 42289 MARGARET COONEY Check Request For Bond: BD26-0043 2,500.00 06/17/2026 GEN 42290 MCCULLOUGH EQUIPMENT RADIATOR COOLER FOR TRACTOR 2,010.00 06/17/2026 GEN 42291 MCQUEEN, SALLY ANN Check Request For Bond: BD26-0062 2,471.50 06/17/2026 GEN 42292 Midwest Arbor Corporation Check Request For Bond: BD25-0223 2,500.00 06/17/2026 GEN 42293 MIDWEST GROUNDCOVERS, LLC PLANTS FOR WATER TOWER PARK 221.50 FLOWERS FOR WATER TOWER PARK 110.80 332.30 06/17/2026 GEN 42294 MILEVA ZUNIJC Check Request For Bond: BD24-0224 2,500.00 06/17/2026 GEN 42295 MILLEN ACE HARDWARE TRAILER HITCH MULTI BALL 76.49 WATERING WAND FOR FLOWERS 22.49 3 EXTRA KEYS EVIDENCE ROOM 8.07 WATER CONNECTION FOR WATER PLANT SAILIN 127.04 PARTS TO INSTALL NEW WATER LINE TO SAIL 93.53 CREDIT FOR ITEMS RETURNED (79.17) 248.45 06/17/2026 GEN 42296 NICOR NICOR WATER PLANT 042226-052226 1,408.80 06/17/2026 GEN 42297 NORTHEASTERN IL REGIONAL CRIMCRIME LAB MEMBERSHIP & FACILITY MAINTEN 6,534.00 06/17/2026 GEN 42298 OMEGA-NORTHSHORE EMPLOYMENT SCREENING 805.00 06/17/2026 GEN 42299 PACE ANALYTICAL SERVICES, LLCMAY MONTHLY BACTERIA WATER SAMPLE 60.00 QUARTERLY WATER SAMPLE FOR THAA AND HAA 115.00 MAY MONTHLY WATER SAMPLE 53.00 228.00 06/17/2026 GEN 42300 PETTY CASH-POLICE DEPT POLICE PETTY CASH 6.8.2026 46.47 06/17/2026 GEN 42301 RICHARD GORDON Check Request For Bond: BD25-0195 1,100.00 06/17/2026 GEN 42302 Rosanna Nelson Check Request For Bond: BD25-0175 5,000.00 06/17/2026 GEN 42303 ROSE PEST SOLUTIONS, INC. SEMI-ANNUAL PEST CONTROL SPRAY 92.00 06/17/2026 GEN 42304 SBERTOLI, JOHN Check Request For Bond: BD24-0213 5,000.00 06/17/2026 GEN 42305 SIKICH LLP AUDIT SERVICES FY25 PROGRESS BILL THROG 6,400.00 06/17/2026 GEN 42306 STANDARD EQUIPMENT COMPANY RENTAL OF VAC TRAILER TO CLEAN CATCH BA 1,500.00 06/17/2026 GEN 42307 STAPLES, INC. OFFICE SUPPLIES 57.26 06/17/2026 GEN 42308 TESKA ASSOCIATES APRIL 26 ZONING CODE UPDATE RESO 2025-0 3,953.75 APRIL 2026 ONGOING PLANNING SERVICES RE 10,870.32 14,824.07 06/17/2026 GEN 42309 THE CHILDREN'S ADVOCACY CENTECAC ANNUAL SUPPORT 2026 250.00 06/10/2026 11:20 AM Page: 4/5 14 CHECK REGISTER FOR VILLAGE OF KENILWORTH CHECK DATE 06/10/2026 - 06/18/2026 BANK CODE: GEN - GENERAL OPERATING Check Date Bank Check Vendor Name Description Amount Bank GEN GENERAL OPERATING Check Type: Paper Check GEN 06/17/2026 GEN 42310 THOMSON REUTERS-WEST CLEAR SUBSCRIPTION 4/1/2026 - 4/30/2026 243.17 06/17/2026 GEN 42311 WATERWAY CARWASH CAR WASHES - APRIL 2026 (2) 11.50 06/17/2026 GEN 42312 ZAFIRO PAPASTRATAKOS // ZTP SMAY JUNE 2026 PERMIT AND CODE ENFORCEME 6,242.53 Total Paper Check: 105,280.50 GEN TOTALS: Total of 74 Checks: 1,057,544.59 Less 0 Void Checks: 0.00 Total of 74 Disbursements: 1,057,544.59 06/10/2026 11:20 AM Page: 5/5 15 Request for Board Action Agenda Item: V.A.1 Staff Contact: Ryan Glew, Interim Police Commander Subject: Ordinance Declaring Certain Village Property as Surplus and Authorizing the Sale or Disposal Thereof (Police Equipment) Summary: Pursuant to State Code, the Village is required to declare property surplus and cause it to be sold or disposed if it no longer benefits the Village prior to disposition. Due to routine equipment upgrades, the Village now has several older items which are no longer of use and are obsolete. The provided ordinance declares the equipment surplus and authorizes the Village to sell or dispose of it. Background of Matter: The Village regularly replaces equipment after it has passed its useful life. In order to dispose or sell equipment that is no longer of use to the Village, the Village Board must first declare the items as surplus property. The items are as follows. Police radios, accessories, and chargers: • (2) Motorola CDM1250 in-car police radios • (3) Motorola CDM1250 in-car police radios • (1) Motorola GM300 in-car police radios • (10) Motorola MT1500 portable police radios • (2) Motorola MT1000 portable police radios • (2) Motorola HT1250 portable police radios • (4) Motorola single portable police radio chargers • (2) Motorola 6-slot gang portable police radio chargers The Village has received an offer for the police radios, accessories, and chargers from Sunny Communications for a total $250.00. This offer is valid until August 7, 2026. Efforts have been made to engage with vendors to determine the resale value and sell numerous additional surplus items. These efforts have not been successful but reveal there is no value to the following items: • (2) roof mounted emergency light bars • (3) WatchGuard in-car camera systems • (2) Havis laptop docking stations • (1) Ledco laptop docking station • (1) Motorola EX500 portable police radio • (1) Zivelo wall mounted telephone kiosk • (6) Panasonic Toughbook laptops Considered By: Date: Village Board 06/15/26 Village of 16 An organization named eWorks Electronic Services has agreed to assist in disposal of these items. There is no charge to police departments, and they provide the necessary certifications as part of the disposal process. Policy: Village property must be determined to be no longer of value to the Village in order for it to be sold or disposed. An Ordinance is required for the determination. Financial Impact: Any revenue generated from the sale of surplus property will be applied to the General Fund. Recommendation: Staff recommends the Village Board consider and adopt the attached ordinance as presented. Attachment: Ordinance Authorizing the Sale or Disposal of Surplus Village Property 17 ORDINANCE NO. ___ ORDINANCE DECLARING CERTAIN VILLAGE PROPERTY AS SURPLUS AND AUTHORIZING THE SALE OR DISPOSAL THEREOF (POLICE EQUIPMENT) Passed by the Board of Trustees this __ day of June 2026 Published by the Board of Trustees this __ day of June 2026 Printed and published in pamphlet form by Authority of the President and Board of Trustees VILLAGE OF KENILWORTH, ILLINOIS __________________________________ Michael Gagnon Village Clerk 18 ORDINANCE NO. ______ ORDINANCE DECLARING CERTAIN VILLAGE PROPERTY AS SURPLUS AND AUTHORIZING THE SALE OR DISPOSAL THEREOF (POLICE EQUIPMENT) WHEREAS, the President and Board of Trustees may designate property that is no longer needed by the Village to provide services or that does not otherwise benefit the Village as surplus property; and WHEREAS, pursuant to Section 11 -76-4 of the Illinois Municipal Code, 65 ILCS 5/11-76-4, the President and Board of Trustees may authorize the sale of surplus property; and WHEREAS, the President and Board of Trustees have determined that it is no longer necessary or useful, or in the best interests of the Village, to retain items listed on Exhibit A attached to this ordinance, currently owned by the Village ( “Sale Property”); and WHEREAS, the President and Board of Trustees have determined that it is in the best interest of the Village to sell or dispose the surplus property; NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF KENILWORTH, COOK COUNTY, ILLINOIS, as follows: SECTION ONE: RECITALS. The foregoing recitals are incorporated in this Ordinance as the findings of the President and Board of Trustees. SECTION TWO: SALE OF SURPLUS PROPERTY . Pursuant to Section 11 -76-4 of the Illinois Municipal Code, 65 ILCS 5/11-76-4, the Village Manager is hereby authorized and directed to sell the Sale Property listed in Exhibit A. SECTION THREE: EFFECTIVE DATE. This Ordinance shall be effective following its passage, approval, and publication in pamphlet form in the manner required by law. PASSED this _____ day of June 2026. AYES: NAYS: ABSENT: ABSTAIN: _________________________________ Cecily Kaz Village President ATTEST: ___________________________________ Michael Gagnon Village Clerk 19 EXHIBIT A Item Serial Number Roof-mounted emergency light bar None Roof-mounted emergency light bar None WatchGuard in-car camera system DVR2-072401 WatchGuard in-car camera system DVR2-072427 WatchGuard in-car camera system DVR2-072477 Panasonic Toughbook laptop CF-29 4GKSA45371 Panasonic Toughbook laptop CF-29 4GKSA45373 Panasonic Toughbook laptop CF-29 4GKSA45375 Panasonic Toughbook laptop CF-30 8HKSB79028 Panasonic Toughbook laptop CF-31 0HKYA18836 Panasonic Toughbook laptop CF-31 0HKYA19081 Motorola portable police radio MT1500 687THG4368 Motorola portable police radio MT1500 687THG4369 Motorola portable police radio MT1500 687THG4372 Motorola portable police radio MT1500 687THG4375 Motorola portable police radio MT1500 687THG4376 Motorola portable police radio MT1500 687THG4377 Motorola portable police radio MT1500 687THG4383 Motorola portable police radio MT1500 687THG4385 Motorola portable police radio MT1500 687THG4387 Motorola portable police radio MT1500 687THG4388 Motorola portable police radio HT1250 649TAG7902 Motorola portable police radio HT1250 649TAG7905 Motorola portable police radio HT1000 402AVQD680Z Motorola portable police radio HT1000 402AVQD682Z Motorola portable police radio EX500 004TG0A172 Motorola in-car police radio CDM1250 103TCA2040 Motorola in-car police radio CDM1250 103TCA2062 Motorola in-car police radio CDM1250 103TDC3150 Motorola in-car police radio CDM1250 103TKA8653 Motorola in-car police radio CDM1250 103TKC7115 Motorola in-car police radio GDM300 159TAA9828 Havis laptop docking station P30X2107373 Havis laptop docking station P30X2107979 Ledco laptop docking station X23345 Motorola 6-slot gang portable police radio charger 7327MKG01 Motorola 6-slot gang portable police radio charger 7345MKI03 Motorola single portable police radio charger 0127PDN11 Motorola single portable police radio charger 0127PDO11 Motorola single portable police radio charger 7116PDU08 Motorola single portable police radio charger NTN1174A Zivelo wall mounted telephone kiosk 02C3BCK61480005 20 Request for Board Action Agenda Item: V.A.2 Staff Contact: Jordan Schmidt, Administration Subject: Adoption of a Resolution Authorizing the Renewal of a Professional Services Agreement with InterDev, LLC, of Roswell, Georgia for Information Technology Services Summary: InterDev has been providing information technology (IT) services to the Village since 2014. In 2023, the Village entered into a new three-year agreement with InterDev, with the option to extend for two additional one-year terms. The Village continues to have a positive relationship with InterDev and wishes to renew the agreement. It is recommended that the Village Board authorize the execution of the contract renewal in the 2026-2027 amount of $56,227.56 Background of Matter: In 2013, the Village helped establish a consortium of local governments that worked jointly to contract for information technology services and equipment, and subsequently hired InterDev of Roswell, Georgia to provide IT services for all members. In 2023, due to several members wishing to longer be involved, the consortium was dissolved, and the Village directly negotiated a new three-year agreement with InterDev, with the option to extend for two additional one-year terms. With the conclusion of the initial three-year term nearing, the Village wishes to renew the agreement for an additional year. InterDev has continued to demonstrate a pattern of acceptable services, and is fully aware of the current technology environment in the Village, and needs moving forward. With the renewal, the Village will continue to maintain the full range of services currently provided, including help desk, network support, and application support. Services will continue to be provided primarily remotely, with on-site support as needed at no additional cost. InterDev’s current monthly service fee is $4,462.50. In accordance with the agreement, they are proposing a five percent increase for the renewal, bringing the new monthly fee to $4,685.63. Staff recommends the Village Board authorize the execution of the contract renewal with InterDev for IT services. Policy: Village Board approval is required to engage in non-emergency agreements in excess of $20,000. Additionally, the Village Purchasing Manual guides the processes for evaluating and engaging professional services. Financial Impact: The Village budgeted $58,045 in the FY2026 Budget for InterDev’s ongoing IT services. The approved FY2026 budget anticipated a 5% increase for the remainder of the 2026 calendar year. Current expenses are on track to be within the FY2026 Budget. Considered By: Date: Village Board 06/15/26 Village of 21 Anticipated Expenditure (FY26) $54,888 Budget Amount (FY26) $58,045 Variance $3,157 GL Number: Prof. Services – IT 01-100-5100 & 35-100-5100 Recommendation: Staff recommend that the Village Board authorize the renewal of the Professional Services Agreement with InterDev. Attachments: • Resolution authorizing execution of the renewal of the professional services agreement for information technology services • Professional Services Agreement Renewal 22 [Signature Page Follows] VILLAGE OF KENILWORTH RESOLUTION NO. 2026-__ A RESOLUTION AUTHORIZING THE RENEWAL OF A PROFFESIONAL SERVICES AGREEMENT WITH INTERDEV, LLC, OF ROSWELL, GEORGIA FOR INFORMATION TECHNOLOGY SERVICES WHEREAS, the Village of Kenilworth ("Village") is a non-home rule municipality located in Cook County, Illinois; and WHEREAS, in 2023 the Village of Buffalo Grove solicited sealed proposals for information technology services and evaluated same through the GovITC Consortium on behalf of several villages, including the Village; and WHEREAS, on or about June 20, 2023, upon the dissolution of the GovITC Consortium, the Village and InterDev entered into a Professional Services Agreement for Information Technology (“IT”) Services with InterDev, LLC of Roswell, Georgia; and WHEREAS, the Village finds that InterDev has satisfactorily performed the services required by the Agreement; and WHEREAS, the Village and InterDev desire to execute the option to renew the professional services agreement (“Agreement”) for continued IT services, all as set forth in this Resolution; and WHEREAS, an Agreement has been drafted to memorialize the terms and conditions under which the IT Services will be provided and is attached as Exhibit A; and WHEREAS, the President and Board of Trustees determined that it will serve and be in the best interests of the Village and its residents to approve an Agreement in accordance with this Resolution; and NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Kenilworth, Cook County, Illinois, as follows: Section 1. Recitals. The foregoing recitals are incorporated in and made a part of this Resolution by this reference. All exhibits attached to this Ordinance are incorporated by this reference. Section 2. Approval of Agreement . The President and Board of Trustees hereby approve the Agreement in a form substantially similar to that in Exhibit A. Section 3. Execution and Enforcement . The Board of Trustees hereby authorize and direct the Village Manager and Village Clerk to execute, on behalf of the Village, the Agreement. The Village Manager is authorized and directed to administer and enforce the agreement, including, without limitation, exercising the renewals identified in the agreement. Section 4. Effective Date. This Resolution shall be in full force and effect from and after its passage and approval by a vote of the requisite majority of the members of the Village Board. 23 Passed this _______ day of June, 2026. AYES: NAYS: ABSENT: ABSTAIN: Cecily Kaz Village President Attest: Michael Gagnon Village Clerk 24 Exhibit A Agreement 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 ൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞൞ May 29, 2026 Kathy M. Thake Village Manager Village of Kenilworth 419 Richmond Road Kenilworth, IL 60043 RE: Professional Services Agreement Renewal – /ŶĨŽƌŵĂƟŽŶdĞĐŚŶŽůŽŐLJ^ĞƌǀŝĐĞƐ Dear Ms. Thake, InterDev appreciates the opportunity to serve as the Village of Kenilworth's trusted technology partner. WƵƌƐƵĂŶƚƚŽ^ĞĐƟŽŶϯŽĨƚŚĞWƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐŐƌĞĞŵĞŶƚĚĂƚĞĚ:ƵŶĞϮϲ͕ϮϬϮϯ͕/ŶƚĞƌĞǀŝƐƉůĞĂƐĞĚƚŽ ƐƵďŵŝƚƚŚĞĂƩĂĐŚĞĚƌĞŶĞǁĂůƉƌŝĐŝŶŐĨŽƌƚŚĞĮƌƐƚŽŶĞ-LJĞĂƌƌĞŶĞǁĂůƚĞƌŵĂǀĂŝůĂďůĞƵŶĚĞƌƚŚĞŐƌĞĞŵĞŶƚ͕ ĞdžƚĞŶĚŝŶŐƚŚĞƚĞƌŵĨƌŽŵ:ƵůLJϭ͕ϮϬϮϲƚŚƌŽƵŐŚ:ƵŶe 30, 2027. /ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŐƌĞĞŵĞŶƚ͕/ŶƚĞƌĞǀŝƐproposing ĂĮǀĞƉĞƌĐĞŶƚ;ϱйͿĂĚũƵƐƚŵĞŶƚƚŽƚŚĞĐŽŶƚƌĂĐƚ amount for the upcoming renewal term. ŽŶƚƌĂĐƚdĞƌŵ DŽŶƚŚůLJ&ĞĞ ŶŶƵĂů&ĞĞ ƵƌƌĞŶƚ;ϳͬϭͬϮϬϮϱ– ϲͬϯϬͬϮϬϮϲͿ Ψϰ͕ϰϲϮ͘ϱϬ Ψϱϯ͕ 550.00 ZĞŶĞǁĂů;ϳͬϭͬϮϬϮϲ– ϲͬϯϬͬϮϬϮϳͿ $4,ϲϴϱ͘ϲϯ Ψϱϲ͕ϮϮϳ͘ϱϲ tĞĂƉƉƌĞĐŝĂƚĞƚŚĞŽƉƉŽƌƚƵŶŝƚLJƚŽƐĞƌǀĞƚŚĞsŝůůĂŐĞĂŶĚůŽŽŬĨŽƌǁĂƌĚƚŽĐŽŶƟŶƵŝŶŐŽƵƌƉĂƌƚŶĞƌƐŚŝƉǁŝƚŚ you and the Village team during the upcoming renewal term. Please let us know if you require any ĂĚĚŝƟŽŶĂůŝŶĨŽƌŵĂƟŽŶƚŽƐƵƉƉŽƌƚƚŚĞsŝůůĂŐĞΖƐĐŽŶƐŝĚĞƌĂƟŽŶŽĨƚŚŝƐƌĞŶĞǁĂů͘ Sincerely, Robert Berrelez vCIO InterDev, LLC Robert Berrelez vCIO 51 y,//d RENEWAL PRICING SCHEDULE sŝůůĂŐĞŽĨ<ĞŶŝůǁŽƌƚŚ Professional Services Agreement Renewal Term :ƵůLJϭ͕ϮϬϮϲ– :ƵŶĞϯϬ͕ϮϬϮϳ ĞƐĐƌŝƉƟŽŶ DŽŶƚŚůLJ&ĞĞ ŶŶƵĂů&ĞĞ ƵƌƌĞŶƚŽŶƚƌĂĐƚŵŽƵŶƚ Ψϰ͕ϰϲϮ͘ϱϬ Ψϱϯ͕ϱϱϬ.00 Renewal Contract ŵŽƵŶƚ $4,ϲϴϱ͘ϲϯ Ψϱϲ͕ϮϮϳ͘ϱϲ dŚĞƌĞŶĞǁĂůƉƌŝĐŝŶŐƌĞŇĞĐƚƐĂĮǀĞƉĞƌĐĞŶƚ;ϱйͿĂĚũƵƐƚŵĞŶƚĂƐƉĞƌŵŝƩĞĚƵŶĚĞƌ^ĞĐƟŽŶϯŽĨƚŚĞ WƌŽĨĞƐƐŝŽŶĂů^ĞƌǀŝĐĞƐŐƌĞĞŵĞŶƚĚĂƚĞĚ:ƵŶĞϮϲ͕ϮϬϮϯ͘ ĐĐĞƉƚĞĚĂŶĚƉƉƌŽǀĞĚ͗ s/>>'K&<E/>tKZd, ________________________ Kathy M. Thake Village Manager ĂƚĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ /EdZs͕>> ________________________ 'ĂƌLJEŝĐŚŽůƐ ŚŝĞĨdžĞĐƵƟǀĞKĸĐĞƌ ĂƚĞ͗ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ 52 Request for Board Action Agenda Item: V.A.3 Staff Contact: Katarzyna Thake, Village Manager Heather McFarland, Asst. to the Village Manager Subject: A Resolution Ratifying Change Order Numbers 5 and 6 for Construction Manager at Risk Services for the Water Plant Repurposing and Lakefront Improvements Project with Bulley and Andrews, Inc., Chicago, Illinois by Increasing the Contract Price by $157,686.75 for a Guaranteed Maximum Price Value of $7,684,882.58 Summary: Construction for the Beach Improvement Project commenced during the fall of 2025. Unforeseen conditions during the project expanded the scope of work and necessitated change orders. The Village authorized work to proceed at the time to not delay construction progress. It is recommended that the Village Board ratify change order numbers 5 and 6 in the total amount of $157,686.75, thereby increasing the Guaranteed Maximum Price (GMP) value to $7,684,882.58. Background of Matter: At their August 18, 2025 meeting, the Village Board established a Guaranteed Maximum Price (GMP) of $6,980,000 for the Water Plant Repurposing and Lakefront Improvements project (aka Beach Improvement Project (BIP). After a successful fundraising campaign for beach plaza improvements, the Village Board approved Change Order 1 on November 17, 2025, increasing the GMP by $501,447 to $7,481,447. Three additional change orders were approved in February 2026 due to unforeseen site conditions that increased the GMP to $7,527,195.83. Work began last fall, beginning with site preparation for the planned improvements and then construction. Over the course of the work, several unforeseen conditions surfaced that required approval of a change order. To not further delay the project, the Village authorized two separate change orders for the required additional work. The change orders collectively totaled $157,687. While the project budget allocated contingency funds, the Village’s contract with Bulley and Andrews excludes unforeseen conditions and design errors as eligible expenses. A budget amendment will be necessary at the end of the year to align the project cost with the FY26 Budget. A summary of each of the change orders and the work required to resolve the issue has been included below: Change Order 5 – Multiple Total Cost: $65,192.75 CMU: $13,949.50 The original project design included ground face CMU (concrete masonry units) for the bathroom addition. This type of CMU was modified during the value engineering process to a cheaper alternative. After re-reviewing the alternative during construction, the design team recommended reincorporating ground face CMU for improved aesthetics. Miscellaneous Reconciliations: $46,254 Considered By: Date: Village Board 06/15/26 02/17/26 11/17/25 08/18/25 Village of 53 Multiple items that should have been shown on the project plans were inadvertently excluded due to coordination errors during the value engineering process: • Duct and backdraft dampers related to beam penetration • Inaccurate light fixture estimate • Incorrect water main pipe size (12” vs 10” shown) • Electrical work for security camera feed. Half of this expense is to be offset by project contingency funds Other items requiring reconciliation were unforeseen and identified during construction: • New concrete to replace a delaminated wall and stairs • Roof drain to reroute stormwater from pipe uncovered during construction Miscellaneous Credits: $4,356 Savings were identified through the elimination of small scopes of work that were no longer required: • Sawcut portions of existing concrete slab • Remove backdraft dampers • Remove compressor and compressor pad • Remove mop basin and replace with hose bibbs Revised Railing: $9,345.25 To improve the aesthetics of the railing, the layout was revised and additional sections of railing were added. Change Order 6 – Undercuts Cost: $92,494 During the first phases of work, unsuitable soils and undocumented structures were found when preparing the site, requiring removal and backfill. The Village’s contracted inspector with Testing Service Corporation (TSC) provided direction to contractors to ensure the site was properly prepared to support future construction. A report with their assessment is included as an attachment. To illustrate the scope of changes, the first image below shows the approved site design for the project (red outline) and the found conditions (multi-color) on the bluff. The second image shows the site design for the project. The delta between the red line and colored graphic highlights the scope of additional work that was required to bridge the gap. Section drawings have also been provided by the Village’s architect, Woodhouse Tinucci Architects, to further illustrate the scope change. Found Conditions 54 Site Design Requested Action: Approval of two change orders with Bulley and Andrews is required. The change orders ratify the Village’s authorization for Bulley and Andrews’ subcontractors to proceed with the work and increase the GMP. If the change orders are approved, the GMP would increase by $157,687 to a new total of $7,684,881. A breakdown of the amount, which includes subcontractor and construction management fees, is shown below: PCCO Numbers 5 and 6 Value CMU, Handrail, Credits, Misc. $62,011 Undercuts $87,588 CM Fee (2.5%) $3,820 SDI (1.2%) $1,681 Liability Insurance (1.1%) $1,833 Bond (.8%) $753 Total $157,686.75 Current GMP Amount $7,527,195.83 Change Order 5 and 6 $157,686.75 Revised GMP Amount $7,684,882.58 It is recommended that the Village Board approve the proposed change orders. Financial Impact: The total project cost is increasing by $157,686.75 from $7,527,195.83 to $7,684,882.58 based on Guaranteed Maximum Price Value. All funds for this project will be paid from Fund 28. The FY26 Budget includes 2/3 of the total cost based on the proposed schedule for the project, in addition to donations received from community members. Recommendation: Staff recommends the Village Board approve a Resolution Ratifying Change Order Numbers 5 and 6 for Construction Manager at Risk Services for the Water Plant Repurposing and Lakefront Improvements Project with Bulley and Andrews, Inc., Chicago, Illinois by increasing the contract price by $157,686.75 for a Guaranteed Maximum Price Value of $7,684,882.58. Attachments: • Resolution - Approving Change Order • Change Order PCCO #005 (PCO #007-009, #011) • Change Order PCCO #006 (PCO #010) • TSC Report • Bluff Section Drawings 55 2 VILLAGE OF KENILWORTH RESOLUTION NO. 2026 - ___ RESOLUTION RATIFYING APPROVAL OF CHANGE ORDER NUMBERS 5 AND 6 FOR CONSTRUCTION MANAGER AT RISK SERVICES FOR THE WATER PLANT REPURPOSING AND LAKEFRONT IMPROVEMENTS PROJECT WITH BULLEY AND ANDREWS, INC., CHICAGO, ILLINOIS TO INCREASE THE CONTRACT PRICE BY $157,686.75 FOR A GUARANTEED MAXIMUM PRICE VALUE OF $7,684,882.58 WHEREAS, the Village of Kenilworth (“Village”) is an Illinois municipal corporation organized and operating in accordance with the State of Illinois Constitution and the Illinois Municipal Code 65 ILCS 5/1, et seq.) (“Code”); and WHEREAS, the Village Board adopted Resolution 2024-28 on November 7, 2024 and subsequently amended Resolution 2025-28 on August 18, 2025 establishing a guaranteed maximum price (“Contract”) with Bulley and Andrews, Inc., for Construction Manager at Risk Services for the Water Plant Repurposing and Lakefront Improvements in the Amount of $6,980,000 (“Project”); and WHEREAS, over the course of Project four change orders were approved by Village Board that increased the Contract’s Guaranteed Maximum Price by $547,195.83 from its original amount of $6,980,000 for a new total of $7,527,195.83; and WHEREAS, recently, additional work was required in connection with construction of the Project including, among other things, work involving concrete and earthwork in response to unforeseen site conditions and general scope and material changes; and WHEREAS, the changes to the scope of work require a further increase in the Contract ’s Guaranteed Maximum Price; and WHEREAS, Change Orders Number 5 and 6 (collectively, the “ Change Orders”), reflecting the change in scope were submitted for Village approval; and WHEREAS, the Change Orders increased the Contract’s Guaranteed Maximum Price by $157,686.75 from $7,527,195.83 to $7,684,882.58; and WHEREAS, the Village Purchasing Manual requires Village Board approval of a ny change order that increases the Contract price by the lesser of 5% or $20,000; and WHEREAS, the Village authorized the work contemplated by the Change Orders to proceed to avoid impacting the Project schedule; and WHEREAS, the Village Board finds that it is in the best interest of the Village to ratify approval of the Change Orders for the Project; and WHEREAS, based on the recommendation of the Village Manager, the Village Board makes the following findings and determinations in accordance with the Section 2 of the Purchasing Manual regarding changes to the Contract: 1. The Change Order s attached hereto as Group Exhibit A and made a part 56 Resolution No. 2026-xx 3 hereof, modify the Contract. 2. The Change Orders were made necessary by circumstances not foreseeable at the time the Contract was signed and are germane to the Contract as originally signed. 3. The changes are in the best interests of the Village to complete this project. WHEREAS, the Village Board finds that it is in the Village’s best interests to approve the Change Orders that doing so will promote the public health, safety, morals, and welfare; and NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees of the Village of Kenilworth, Cook County, Illinois, as follows: SECTION 1: Each recital set forth above is incorporated by reference into this Section 1. SECTION 2: The prior action of the Village Manager executing the Change Orders attached hereto as Group Exhibit A is hereby ratified as and for the action of the Village Board and hereby made the formal corporate action of the Village Board, nunc pro tunc. The Village Board authorizes and direct the Village Manager take all actions necessary to implement the Change Orders’ terms. SECTION 3: Each section, paragraph, clause and provision of this Resolution is separable, and if any provision is held unconstitutional or invalid for any reason, such decision shall not affect the remainder of this Resolution, nor any part thereof, other than that part affected by such decision. SECTION 4: This Resolution shall be in full force and effect from and after its adoption, approval and publication in the manner provided by law. PASSED: This 15th day of June, 2026 YEAS: NAYS: ABSENT: ABSTAIN: APPROVED by me this 15th day of June, 2026. President of the Village of Kenilworth Cook County, Illinois ATTESTED AND FILED in my office this 15th day of June, 2026, and published in pamphlet form as provided by law in the Village of Kenilworth, Illinois. Village Clerk 57 Resolution No. 2026-xx 4 Group Exhibit “A” Change Orders Number 5 and 6 (attached) 58 Change Order  PROJECT: (name and address) CONTRACT INFORMATION: CHANGE ORDER INFORMATION: Kenilworth Water Plant Repurposing 1 Kenilworth Avenue Kenilworth, Illinois 60043 Contract For: Kenilworth Water Plant Repurposing Change Order Number: 005  Date: Date: 5/19/2026      OWNER: (name and address) ARCHITECT: (name and address)  TO CONTRACTOR: (name and address)  VILLAGE OF KENILWORTH 419 RICHMOND RD KENILWORTH, Illinois 60043-1199   Bulley & Andrews, LLC 1755 West Armitage Avenue Chicago, Illinois 60622   THE CONTRACT IS CHANGED AS FOLLOWS: PCO #007 -  Ground Face CMU Add Ground Face CMU back into project for Bathroom Building   PCO #008 - RFI Reconciliation Change Order   RFI #06 Added Duct and Backdraft Dampers - Labor and Material associated with RFI #6 adding some duct and backdraft dampers relating to beam penetration coordination.     RFI #42 New Concrete Pour for Delaminated Existing Wall and Stairs   Reroute Existing Storm Piping Uncovered During Demo Plumbing Presented are the costs associated with rerouting existing storm piping, furnishing and installing a downspout nozzle. See RFI #21 for more information.   Site Utilities Presented are the costs associated with the added connection and added roof drain to connect with CB-2   Existing Plumbing Main Size Discrepancy Drawings say existing plumbing main is 10" it is a 12" pipe.  Cost difference for 12" pipe instead of 10" pipe.    - (2) 12" Mega Flanges    - (1) 12" Butterfly Valve    - (1) 12" x 6" Reducing T   Feed for Future Camera Location Feed for future camera location dictated during OAC meeting   During the value engineering (VE) phase, the original drawings included: • 35 F-VE1 fixtures • 6 F-VE2 fixtures • 7 drivers These quantities were used in developing our VE pricing. However, the Issued for Construction drawings increased the counts to: • 44 F-VE1 fixtures • 10 F-VE2 fixtures • 7 drivers Subsequently, the photometric drawings—which we were instructed to use for procurement—indicated: • 67 F-VE1 fixtures   Docusign Envelope ID: 69494769-EBA8-8BA8-81B2-C14F63834E11 59 • 10 F-VE2 fixtures • 7 drivers PCO #009 - Misc. Credit Reconciliation Change Order Misc. Demo Changes - RFCO #1 Additional Brick, Concrete, Paver and Cast iron Pipe Removal during Demo Phase - RFCO #2 VOID - RFCO #3 Credit to not Sawcut/break top portions of the structural slab to get to elevations detailed on 3/SD200.  Noted as topping slab, actually structural slab. - RFCO #4 Credit to not remove existing compressor and compressor pad   RFI#51 Removal of Backdraft Dampers   Costs associated with removing Mop Basin from project and adding (3) freezeless hose bibbs.   PCO #011 - ASK-03 Revised Plaza Rail Layout and Detail   PCO 007 CE #022 - Ground Face CMU $13,949.50   PCO 008 RFI Reconciliation Change Order $46,254.00   PCO 009 Misc. Credit Reconciliation Change Order -$4,356.00   PCO 011 ASK-03 Pricing (Radius Handrail) $9,345.25           The original Contract Sum was $ 6,980,000.00 The net change by previously authorized Change Orders $ 547,195.83 The Contract Sum prior to this Change Order was $ 7,527,195.83 The Contract Sum will would be changed by this Change Order in the amount of $ 65,192.75 The new Contract Sum including this Change Order will be $ 7,592,388.58 The Contract Time will  by   The new date Substantial Completion will be    NOTE: This Change Order does not include adjustment in the Contract Sum or Guaranteed Maximum Price, or the Contract Time, that have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change Directive.   NOT VALID UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER.       Bulley & Andrews, LLC   VILLAGE OF KENILWORTH ARCHITECT (Firm name)   CONTRACTOR (Firm name)   OWNER (Firm Name)   ProcoreArchitectSignHere     ProcoreGeneralContractorSignHere     ProcoreOwnerSignHere SIGNATURE   SIGNATURE   SIGNATURE ProcoreArchitectPrintHere                                                           ProcoreArchitectTitleHere   ProcoreGeneralContractorPrintHere                          ProcoreGeneralContractorTitleHere   ProcoreOwnerPrintHere                                                                ProcoreOwnerTitleHere PRINTED NAME AND TITLE   PRINTED NAME AND TITLE   PRINTED NAME AND TITLE   ProcoreArchitectSignedDate     ProcoreGeneralContractorSignedDate     ProcoreOwnerSignedDate DATE   DATE   DATE     AIA Document G701™ – 2017. Copyright © 1979, 1987, 2000 , 2001 and 2017 by The American Institute of Architects. All rights reserved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This draft was produced by AIA software at 10:51:03 CT on 08/05/2020 under Order No.4177726938 which expires on 03/28/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® T erms of Service. T o report copyright violations, e-mail copyright@aia.org. 2  User Notes: (1932678762)       Docusign Envelope ID: 69494769-EBA8-8BA8-81B2-C14F63834E11 Andy Tinucci 6/1/2026 Andy Tinucci Project Manager 5/27/2026 Paul Ardizzoni 5/22/2026 Katarzyna Thake Vlg Manager 60 Change Order PROJECT: (name and address) CONTRACT INFORMATION: CHANGE ORDER INFORMATION: Kenilworth Water Plant Repurposing 1 Kenilworth Avenue Kenilworth, Illinois 60043 Contract For: Kenilworth Water Plant Repurposing Change Order Number: 006 Date: Date: 6/8/2026 OWNER: (name and address) ARCHITECT: (name and address) TO CONTRACTOR: (name and address) VILLAGE OF KENILWORTH 419 RICHMOND RD KENILWORTH, Illinois 60043-1199 Bulley & Andrews, LLC 1755 West Armitage Avenue Chicago, Illinois 60622 THE CONTRACT IS CHANGED AS FOLLOWS: PCO 010 Undercuts at Proposed Footing Locations $92,494.00 The original Contract Sum was $ 6,980,000.00 The net change by previously authorized Change Orders $ 612,388.58 The Contract Sum prior to this Change Order was $ 7,592,388.58 The Contract Sum will would be changed by this Change Order in the amount of $ 92,494.00 The new Contract Sum including this Change Order will be $ 7,684,882.58 The Contract Time will by The new date Substantial Completion will be NOTE: This Change Order does not include adjustment in the Contract Sum or Guaranteed Maximum Price, or the Contract Time, that have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change Directive. NOT VALID UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER. Bulley & Andrews, LLC VILLAGE OF KENILWORTH ARCHITECT (Firm name) CONTRACTOR (Firm name) OWNER (Firm Name) ProcoreArchitectSignHere ProcoreGeneralContractorSignHere ProcoreOwnerSignHere SIGNATURE SIGNATURE SIGNATURE ProcoreArchitectPrintHere ProcoreArchitectTitleHere ProcoreGeneralCont ractorPrintHere ProcoreGeneralContractorTitleHere ProcoreOwnerPrintHere ProcoreOwnerTitleHere PRINTED NAME AND TITLE PRINTED NAME AND TITLE PRINTED NAME AND TITLE ProcoreArchitectSignedDate ProcoreGeneralContractorSignedDate ProcoreOwnerSignedDate DATE DATE DATE AIA Document G701™ – 2017. Copyright © 1979, 1987, 2000 , 2001 and 2017 by The American Institute of Architects. All rights res erved. The “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are registered trademarks and may not be used without permission. This draft was produced by AIA software at 10:51:03 CT on 08/05/2020 under Order No.4177726938 which expires on 03/28/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail copyright@aia.org. 1 User Notes: (1932678762) 


          
 
   
   
  SIGNATURE ARCHITECCCCCCCCCCCCCCCCCCCCTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT (F(F((F(((F((((((((((((((((((((((((((((((((((((((((((((( irm m mmm mm mmm mmm mm m mm mmmmmm nanannnannananananananananaannnanannnnnannannannanaannananannaaaaaaaaaammmmmmmemmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm ) ProcoreAoreoreAoreoreoreoreororeoreAereoreoreoreAorororeAoreAororeoreAAreAoreoreroreeroreoorororeo eoorroooro rchichichichihihihihichihchchichihichichihichhhchhichhhccchhhhhihhhhhhhhhhhc tecttecttecttecttecttecttttttttttectcttectectt ctectecttectecttecttetectect ctcttctctctccctctectecttttectecctteecc SignignSignSignSignSignSignSignSignSignSignSignSignSSignSSignSSignSignSiggnSignnSigngnigngnngnnSignSiggSignSignigigngSignSignSignSS gnngg HereHerHereHereHerHereHereHHHereHereHerHereHerHHHHereHerrererHereHerHeHHerH rrHerH rHereHH erHHerHHerrHHHHeHHereee Woodhouse Tinucci Architects Andy Tinucci, Manager 06/08/2026 61 Gurnee, Illinois Report Date: 06/08/2026 Ms. Kathy Thake Village of Kenilworth 419 Richmond Road Kenilworth, IL 60643 Job No. 99,952 Foundation Excavations Kenilworth Beach Improvement Project 1 Kenilworth Avenue Kenilworth, IL 60043 Dear Ms. Thake: Various challenging conditions were encountered during the course of construction for this project. This letter is meant to be an overview describing various issues that were encountered during foundation excavation and construction, TSC's recommendations for those conditions, and actions taken to resolve issues as they arose. For more specific details, please refer to our technician's daily field reports from this project. Existing Fill Materials Variable fill materials consisting of mixtures of different soil types and crushed stone, often including concrete pieces and other construction debris, were encountered throughout the site during the excavation process. In some areas, the fill was also described as saturated and unstable. These variable fill materials are not considered suitable for foundation support. If left in place, these highly variable materials pose a settlement risk for backfill placed over them as well as structures constructed upon them. It was therefore recommended that variable fill materials be removed from beneath footings and replaced with granular backfill materials, as is discussed in further detail below. In some isolated areas (specifically, a portion of the retaining wall on line aa at 3 and the restroom thickened slab footings), the existing fill materials were (in part) judged by our technician to consist of more controlled fill materials that appeared to be compacted and/or dense. Based on our technician's observations, these more consistent fill materials appeared to have been placed in a controlled manner, i.e., placed in lifts with each lift compacted to a specified density. Where this condition was encountered, TSC recommended that the fill be left in place as they appeared to be suitable for foundation support. Due to the high variability of the excavations at the site, the exposed fill materials were evaluated on a case-by-case basis as excavation operations progressed. In some areas, it was recommended that the existing fill materials be recompacted using vibratory methods in order to reconsolidate them after excavation operations caused them to be somewhat loose at the surface. Buried Concrete Structures Various buried concrete structures were encountered throughout the project during the excavation process. In some areas, the presence of these structures was anticipated as part of the design and the new structures were "tied in" to the existing concrete structures. However, various structures that were not anticipated were encountered at and shallowly below the proposed footing bearing grades. It is typically recommended that concrete structures be completely removed from beneath new footings, especially if the depth and condition of the existing structure (as well as the condition of the soil supporting it) are unknown. In areas where the concrete structures could be completely removed, they were backfilled with granular backfill as discussed below. In some cases where it was not feasible to completely remove the existing concrete structure (and this alternative was approved by the project team), the concrete structures were cut off a minimum of 12 to 24 inches below the proposed footing bearing grade, as suggested by TSC. Aggregate backfill was placed over the structures to provide a "buffer" between the bottom of the new footings and the top of the existing concrete structure. Brick Structure A round brick structure was encountered about 1'-10" below footing bearing grade at the location of the proposed stairs on line aa at 3. The structure appeared to be filled with debris and saturated fill materials. After an initial meeting to discuss the issue, a probe was pushed down into the fill by the Contractor in order to determine the depth to the bottom of the structure. Resistance was encountered at about 12 feet below the footing bearing grade. At that time, it was decided to remove the variable fill materials and debris down to the apparent bottom at 12 feet below footing grade, to break apart the base slab that was anticipated to be present, and then to backfill the resulting excavation with granular backfill. However, the following day, the Contractor excavated to a depth of 17.5 feet below proposed footing bearing grade at this location and had not yet reached the base of the structure. An additional meeting was held with the project team to discuss how to move forward. With the acceptance of some risk of differential settlement of footings to be constructed over this area, it was decided to remove saturated material exposed at the 17.5 foot depth (to the extent possible) and backfill the structure with granular backfill back to footing bearing grade. The brick structure was left in place and backfilled as recommended. TESTING SERVICE CORPORATION LOCAL OFFICE 1350 TRI STATE PKWY. UNIT 122, GURNEE, IL 60031 TEL: (847) 249-6040 CORPORATE OFFICE 360 S. MAIN PLACE, CAROL STREAM, IL 60188 TEL: (630)-462-2600 1 of 2Job No. 99952 - 06/08/2026 62 cc: Paul Ardizzoni Deb Rieck Andy Tinucci Utilities Existing utilities were encountered within/adjacent to the foundation excavations in several areas. Where feasible, existing pipes were removed and capped or otherwise plugged where they interfered with foundation excavations. Resulting excavations were backfilled with granular backfill as described below. Backfilling Operations Backfill materials for the recommended undercuts and various conditions requiring over-excavation described above typically consisted of ¼ to 3-inch recycled crushed concrete containing no fines. This is the recommended material for backfilling foundation over- excavations due to its relative ease to achieve proper compaction (tamping with the backhoe is typically sufficient) as well as its drainage qualities (due to minimal fines, the presence of rain or other water does not affect its ability to achieve proper compaction). As recommended, the backfill materials were placed in controlled lifts with each lift compacted to a dense and stable state by tamping with the backhoe bucket or by using vibratory compaction equipment. In some areas, IDOT gradation CA-6 was used as backfill, primarily behind and between structures, i.e., typically not in foundation over- excavations. This material is a well-graded crushed stone material. Where CA-6 was used, it was compacted to a minimum of 95 percent of the Modified Proctor density. Specific test results and locations can be found in our technician's field reports. Please call if there are any questions. Sincerely yours, TESTING SERVICE CORPORATION Megan Conway, P.E. Gurnee Branch Manager 2 of 2Job No. 99952 - 06/08/2026 63 64 65 Request for Board Action Agenda Item: V.B.4 Staff Contact: Kathleen Morley, Lauterbach & Amen Kathy M. Thake, Village Manager Subject: Acceptance of the Annual Financial Report for the Period January 1 through December 31, 2025 (Martha Trotter, Sikich) Summary: The Village is required to have an annual financial report prepared no less than once every 12-months. Attached for consideration is the annual audit of the Village’s financial statements for calendar year 2025 as prepared by the independent auditing firm of Sikich. Background of Matter: Attached is draft copy of the Village of Kenilworth Annual Financial Report for fiscal year ended December 31, 2025. A representative from Sikich will be present at the Village Board meeting to present the draft audit report and address any questions the Board may have regarding the document. The common question regarding an audit was if the determination was that we had a “clean” audit. The answer is “yes,” but more accurately the auditors expressed an opinion that the financial statements prepared by the Village present fairly, in all material aspects, the financial position of our activities. Their opinion is expressed on page one of the audit and this is the best opinion that a governmental body can achieve on their audit. This is the second year that Village has not received a management letter comment. Additionally, upon acceptance by the Board, the final version will be placed on the website with our past audits. This represents the sixth year of Sikich auditing the Village’s financial records. Sikich also performs the independent audit of the TIF Fund. Financial Impact: There is no financial impact associated with the acceptance of the audit. Funds necessary for engaging an independent firm for the audit process are budgeted on an annual basis. Recommendation: It is recommended that the Village Board review and accept the annual financial report as prepared and presented by the auditor. Attachment: Annual Financial Report for Calendar Year 2025 Considered By: Date: Village Board 06/15/26 Village of 66 Village of Kenilworth, Illinois Annual Financial Report For the Year Ended December 31, 2025 sikich.com “We are submitting to you the following draft of your financial statements to expedite your review. As stated in our engagement letter with you, the fair presentation of the financial statements is your responsibility. This draft, or elements within should not be shared with any external parties, nor should any inference be made to any parties that no material adjustments or material disclosure modifications are expected before these statements are submitted as final.” Preliminary and Tentative For Discussion Purposes Only 67 VILLAGE OF KENILWORTH, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Principal Officials ....................................................................................................... i FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT .................................................................. 1-3 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management’s Discussion and Analysis ..................................................................... MD&A 1-13 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position .................................................................................. 4-5 Statement of Activities ...................................................................................... 6-7 Fund Financial Statements Governmental Funds Balance Sheet ............................................................................................... 8 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position .................. 9 Statement of Revenues, Expenditures and Changes in Fund Balances ....... 10 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ..................................................... 11 Proprietary Funds Statement of Net Position ............................................................................. 12-13 Statement of Revenues, Expenses and Changes in Net Position ................. 14 Statement of Cash Flows .............................................................................. 15-16 Preliminary and Tentative For Discussion Purposes Only 68 VILLAGE OF KENILWORTH, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Fiduciary Fund Statement of Fiduciary Net Position ............................................................ 17 Statement of Changes in Fiduciary Net Position ......................................... 18 Notes to Financial Statements ........................................................................... 19-59 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund ................................................................................................ 60 Illinois Municipal Retirement Fund Schedule of Employer Contributions ........................................................... 61 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios ...................................................................................... 62-63 Police Pension Fund Schedule of Employer Contributions ........................................................... 64 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios ...................................................................................... 65-66 Schedule of Investment Returns ................................................................... 67 Other Postemployment Benefit Plan Schedule of Changes in the Employer’s Total OPEB Liability and Related Ratios ...................................................................................... 68 Notes to Required Supplementary Information ................................................ 69-70 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund ............................. 71-72 Schedule of Expenditures - Budget and Actual - General Fund ....................... 73-80 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Debt Service Fund ........................................................................................ 81 Capital Projects Fund ................................................................................... 82 2024A Bond/Lake Front Projects Fund ........................................................ 83 Preliminary and Tentative For Discussion Purposes Only 69 VILLAGE OF KENILWORTH, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ................................................................................. 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................. 85 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Sewer Service Fund ...................................................................................... 86 Motor Fuel Tax Fund..................................................................................... 87 Green Bay Road Tax Increment Financing (TIF) Fund ................................... 87 2023 Capital Infrastructure Improvement Fund ........................................... 89 ENTERPRISE FUND Waterworks System Fund Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual ...................................................................................... 90 Schedule of Operating Expenses - Budget and Actual ................................. 91-92 FIDUCIARY FUND Schedule of Changes in Plan Net Position - Budget and Actual Police Pension Fund ..................................................................................... 93 SUPPLEMENTAL INFORMATION Schedule of Long-Term Debt Requirements General Obligation (Alternative Revenue Source) Refunding Bonds of 2015A ............................................................................. 94 General Obligation (Alternative Revenue Source) Bonds of 2022 .................................................................................................. 95 General Obligation Bonds Series 2024A .......................................................... 96 General Obligation Limited Tax Bonds Series 2025 ........................................ 97 Preliminary and Tentative For Discussion Purposes Only 70 INTRODUCTORY SECTION Preliminary and Tentative For Discussion Purposes Only 71 - i - VILLAGE OF KENILWORTH, ILLINOIS PRINCIPAL OFFICIALS December 31, 2025 PRESIDENT Cecily Kaz BOARD OF TRUSTEES Christopher Ottsen Tim Ransford Amelia Hannus John Gottschall Joseph Vitu, Jr. Matthew Lojkovic VILLAGE CLERK VILLAGE ATTORNEY TREASURER Michael Gagnon Gregory Jones Peter Shadek VILLAGE MANAGER Katarzyna M. Thake - i - Preliminary and Tentative For Discussion Purposes Only 72 FINANCIAL SECTION Preliminary and Tentative For Discussion Purposes Only 73 INDEPENDENT AUDITOR’S REPORT The Honorable President Members of the Board of Trustees Village of Kenilworth, Illinois Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities , each major fund and the aggre gate remaining fund information of the Village of Kenilworth, Illinois (the Village), as of and for the year ended December 31, 2025, and the related notes to financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the Village of Kenilworth, Illinois as of December 31, 202 5, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under these standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village ’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. - 1 - Preliminary and Tentative For Discussion Purposes Only 74 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor ’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS 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, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village ’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information 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. - 2 - Preliminary and Tentative For Discussion Purposes Only 75 We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management ’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements as a whole . The accompanying combining and individual fund financial statements and schedules, as listed in the table of contents , is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information is the responsibility of management and was derived from and relate s 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 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 included in the annual financial report. The other information comprises the introductory section but does not include the basic financial statements and our auditor ’s report thereon. Our opinions on the basic financial statements do not cover the other information and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Naperville, Illinois REPORT DATE, 2026 - 3 - Preliminary and Tentative For Discussion Purposes Only 76 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Preliminary and Tentative For Discussion Purposes Only 77 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 1 - Our discussion and analysis of the Village of Kenilworth’s financial performance provides an overview of the Village’s financial activities for the fiscal year ended December 31, 2025. Please read it in conjunction with the Village’s financial statements, which begin on page 4. FINANCIAL HIGHLIGHTS • The Village’s net position increased as a result of this year’s operations. Net position of business-type activities decreased by $ 176,711, or 1.5 percent, and net position of the governmental activities increased by $3,971,789, or 61 percent. • During the year, government-wide revenues for the primary government totaled $ 11,452,651 while expenses totaled $7,657,573, resulting in an increase to net position of $3,795,078. • The Village’s net position totaled $22,412,274 on December 31, 2025, which includes $11,593,250 net investment in capital assets, $10,596,264 subject to external restrictions, and $222,760 in unrestricted net position. • The Village’s governmental funds for the year ending December 31, 2025 reported combined ending fund balances of $18,234,715, which is an increase of $480,240, over last fiscal year’s total of $17,754,475. Of the $18,234,715 total, $4,486,630, or 25 percent of the fund balance constitutes unassigned fund balance, an increase of 2 percent from the prior year. • The General Fund reported a fund balance decrease for the year ending December 31, 2025 of $431,035, resulting in ending fund balance of $5,846,588, a decrease of 7 percent. This slight decrease was related to other financing uses to support the ongoing Lake Front Beach Project. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 4 - 7) provide information about the activities of the Village as a whole and present a longer-term view of the Village’s finances. Fund financial statements begin on page 8. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the Village’s operations in more detail than the government-wide statements by providing information about the Village’s most significant funds. Preliminary and Tentative For Discussion Purposes Only 78 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 2 - USING THIS ANNUAL REPORT – Continued Government-Wide Financial Statements The government -wide financial statements provide readers with a broad overview of the Village’s finances, in a matter similar to a private -sector business. The government -wide financial statements can be found on pages 4 - 7 of this report. The Statement of Net Position reports information on all the Village’s assets /deferred outflows and liabilities/deferred inflows , 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 Village is improving or deteriorating. Consideration of other nonfinancial factors, such as changes in the Village’s property tax base and the condition of the Village’s capital asse ts, is needed t o assess the overall health of the Village. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. 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 (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and charges for services (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 Village include general government, highways and streets, police protection, planning and zoning, and economic development . The business -type activities of the Village include waterworks system operations. 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 Village, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into one of three categories: governmental funds, proprietary funds, and fiduciary funds. Preliminary and Tentative For Discussion Purposes Only 79 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 3 - USING THIS ANNUAL REPORT – Continued Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, 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 the Village’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 the comparison between governmental funds and governmental activities. The Village maintains six 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 , Debt Service, Capital Projects, and 2024A Bond/Lake Front Project Funds, all of which are considered major funds. Data from the other 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 statements elsewhere in this report. The Village adopts an annual budget for all the governmental funds. A budgetary comparison statement for these funds has been provided to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 8 - 11 of this report. Proprietary Funds The Village maintains one proprietary fund type: enterprise fund. Enterprise funds are used to report the same functions presented as business -type activities in the government –wide financial statements. The Village utilizes one enterprise fund to account for its waterworks system operations. Preliminary and Tentative For Discussion Purposes Only 80 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 4 - USING THIS ANNUAL REPORT – Continued Fund Financial Statements – Continued Proprietary Funds – Continued 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 Waterworks System Fund, which is considered to be a major fund of the Village. The basic proprietary fund financial statements can be found on pages 12 - 16 of this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the Vi llage of Kenilworth’s own programs. The accounting use for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages –17-18 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages –19-59 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s General Fund budgetary comparison schedule, disclosures regarding the Village’s two pension plans, and the Retiree Benefits Plan. Required supplementary information can be found on pages 58 - 68 of this report. The combining statements referred to earlier in connection with non -major governmental funds is presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 71-93 of this report. Preliminary and Tentative For Discussion Purposes Only 81 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 5 - GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. The following tables show that in the case of the Village, assets/deferred outflows exceeded liabilities/deferred inflows by $22,412,274. A portion of the Village’s net position, $2,294,801, reflects its investment in capital assets (for example, land, infrastructure, and equipment), less any related debt used to acquire those assets that is still outstanding. The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Village’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this de bt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion, $10,332,068, of the Village’s net position represents resources that are subject to external restrictions on how they may be used, specificall y for debt service requirements, public safety and highways and streets. The remaining ($2,120,783) represents unrestricted net position and is an acceptable indicator of obligations to long-term debt that will be paid off over time. 2025 2024 2025 2024 2025 2024 Current and Other Assets $ 32,118,310 30,080,126 1,346,147 1,057,518 33,464,457 31,137,644 Capital Assets 14,066,910 11,619,149 12,038,678 12,553,119 26,105,588 24,172,268 Total Assets 46,185,220 41,699,275 13,384,825 13,610,637 59,570,045 55,309,912 Deferred Outflows 146,057 275,391 41,219 58,835 187,276 334,226 Total Assets/Deferred Outflows 46,331,277 41,974,666 13,426,044 13,669,472 59,757,321 55,644,138 - Long-Term Debt 21,487,221 23,421,116 1,315,011 1,517,587 22,802,232 24,938,703 Other Liabilities 2,167,072 1,444,134 81,451 68,986 2,248,523 1,513,120 Total Liabilities 23,654,293 24,865,250 1,396,462 1,586,573 25,050,755 26,451,823 Deferred Inflows 12,170,898 10,575,119 123,394 - 12,294,292 10,575,119 Total Liabilities/Deferred Inflows 35,825,191 35,440,369 1,519,856 1,586,573 37,345,047 37,026,942 Net Position Net Investment in Capital Assets 2,294,801 668,541 10,793,678 11,083,119 11,593,250 9,116,827 Restricted 10,332,068 4,196,177 264,196 106,033 10,596,264 4,302,210 Unrestricted (Deficit) (2,120,783) 1,669,579 848,314 893,747 222,760 5,198,159 - Total Net Position 10,506,086 6,534,297 11,906,188 12,082,899 22,412,274 18,617,196 Net Position Governmental Business-Type Activities Activities Totals Preliminary and Tentative For Discussion Purposes Only 82 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 6 - GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Preliminary and Tentative For Discussion Purposes Only 83 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 7 - GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Net position of the Village’s governmental activities increased by 61 percent ($6,534,297 at December 31, 2024 compared to $10,506,086 at December 31, 2025). Unrestricted net position, the part of net position used to finance day-to-day operations without constraints, totaled a negative $2,120,783 at December 31, 2025. Net position of business -type activities decreased by 1.5 percent ($12,082,899 at December 31, 2024 compared to $11,906,188 at December 31, 2025). Governmental Activities Revenues for governmental activities totaled $ 10,237,111, while the cost of all governmental functions totaled $6,265,322, resulting in an increase of $3,971,789 for the year ended December 31, 2025. This net income is due to the municipal sales tax imposed during the year and a reduction in general government expense. The following table graphically depicts the major revenue sources of the Village. It depicts the Village’s reliance upon property taxes and charges for services to fund governmental activities. It also shows the less significant percentage of revenue the Village receives from utility taxes and telecommunication taxes. The percentage of revenues by source has remained fairly constant from year to year. Preliminary and Tentative For Discussion Purposes Only 84 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 8 - GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Governmental Activities – Continued The ‘Expenses and Program Revenues’ Table identifies those governmental functions where program expenses greatly exceed revenues generated by Charges for Services for the program. Business-Type activities Business-Type activities for the year ended December 31, 2025 reported total revenues of $ 1,215,540, while the cost of all business-type activities totaled $1,392,251, resulting in a decrease of $176,711. The decrease in comparison to prior year is primarily due to the absence of revenue from capital grants and contributions of capital assets. Preliminary and Tentative For Discussion Purposes Only 85 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 9 - GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued Business-Type Activities – Continued The graph below compares program revenues to expenses for utility operations. FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds The focus of the Village’s governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The Village’s governmental funds reported combining ending fund balances of $18,234,715, which is an increase of $ 480,240, from last year’s total of $ 17,754,475. Of the $ 18,234,715 total combined fund balances, $4,486,630, or 25 percent, of the fund balance constitutes unassigned fund balance. The General Fund reported fund balance for the year of $5,846,588, a decrease of 7 percent. The decrease is due to delayed property tax receipts from Cook County. Preliminary and Tentative For Discussion Purposes Only 86 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 10 - FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS – Continued Governmental Funds – Continued The General Fund is the chief operating fund of the Village. At December 31, 2025, unassigned fund balance in the General Fund was $4,592,466, which represents 78 percent of the total fund balance of the General Fund. As a measure of the General Fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance in the General Fund represents approximately 97 percent [$4,592,466 of $ 4,696,192] of total General Fund expenditures. The Village fund balance policy targets unrestricted fund balance of 55-70%. The Debt Service Fund reported a decrease in fund balance of $175,471, or 252 percent. The decrease was due to delayed property tax receipts from Cook County . The negative fund balance of $ 105,836 is a reflection of the delayed property tax receipts. During the fiscal year, a General Obligation Limited Bond was issued in the amount of $970,000. Proceeds in the amount of $462,300 were reported in the Capital Projects Fund, resulting in ending fund balance of $2,682,311. Of that total, $507,700 of the proceeds were reported in the Debt Service Fund, a major fund, resulting in ending fund balance of negative $105,836. Proceeds from the bond are earmarked for capital improvements and other lawful expenditures. During the current year a total of $3,025,056 was spent on capital improvements and other long-lived expenditures within the major capital project funds. The Village initiated the 2024A Bond/Lake Front Project fund, a major fund, during the fiscal year 2024. At that time, the Village issued General Obligation Limited Bonds totaling $7,465,000 to carry out the first phase of this three -phase initiative. $5,605,000 of the bond proce eds were used to pay off the 2023 General Obligation Limited Bond. The remaining proceeds are being used to support the Lake Front Project. All other governmental funds of the Village are reported as non-major funds, including the Sewer Service Fund, Motor Fuel Tax Fund, and the Green Bay Road Tax Increment Financing Fund. (The 2023 Capital Infrastructure Fund was closed out during 2025 .) The Sewer Service Fund reported an in crease in fund balance of $49,009 due to sewer charges exceeding budgetary expectations and expenditures coming in under budget for the year . The Motor Fuel Tax Fund reported a decrease in fund balance of $123,061, primarily due to budgeted road projects. During the previous fiscal years, the Village established the Green Bay Road Tax Increment Financing (TIF) Fund to account for incremental revenues and related expenditures within the Green Bay Road TIF District. There were $75,116 in expenditures during the fiscal year and incremental revenues and interest income totaled $420,351. Preliminary and Tentative For Discussion Purposes Only 87 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 11 - FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS – Continued Proprietary Funds The Village’s proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The Vil lage reports the Waterworks System Fund as a major proprietary fund that accounts for the provision of water services to the residents of the Village. In the current year, the Waterworks System Fund reported an operating income of $346,889 before calculating depreciation. The increase for the year is a result of revenues exceeding budgetary expectations for the year. GENERAL FUND BUDGETARY HIGHLIGHTS The Village Board amended the General Fund budget during the year. General Fund actual revenues for the year totaled $6,514,888, compared to budgeted revenues of $6,222,497. All revenue categories, except for Tree Permits and Miscellaneous came in over budget for the year ending December 31, 2025. The General Fund actual expenditures for the year were $ 4,696,192, with budgeted expenditures of $5,012,991. Total expenditures were under budget across all of the General Fund departments with exception of Capital Outlay for the year ending December 31, 2025. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The Village’s investment in capital assets for its governmental and business type activities as of — December 31, 2025, was $26,105,588 (net of accumulated depreciation). This investment in capital assets includes land and right of way, building and improvements, machinery and equipment, and sanitary and sewer system. Preliminary and Tentative For Discussion Purposes Only 88 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 12 - CAPITAL ASSETS AND DEBT ADMINISTRATION – Continued Capital Assets – Continued This year’s major additions included: Additional information on the Village’s capital assets can be found in note 4 of this report. Debt Administration At year end on December 31, 2025, the Village had total outstanding debt of $14,360,000 as compared to $15,380,000 the previo us fiscal year ending on December 31, 2024, a decrease of 6.6 percent due to budgeted bond issuances. During 2025, the General Obligation Limited Bonds of 2025 were issued. The following is a comparative statement of outstanding debt: Preliminary and Tentative For Discussion Purposes Only 89 VILLAGE OF KENILWORTH, ILLINOIS Management’s Discussion and Analysis December 31, 2025 - MD&A 13 - CAPITAL ASSETS AND DEBT ADMINISTRATION – Continued Debt Administration – Continued State statutes limit the amount of general obligation debt a non-home rule governmental entity may issue to 8.625 percent of its total assessed valuation. The gross current debt limit for the Village is $33,666,300. Additional information on the Village’s long-term debt can be found in Note 6 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The Village’s elected and appointed officials considered many factors when setting the fiscal -year 2026 budget, tax rates, and fees that will be charged for its governmental activities. One of those factors is the economy, including unemployment rates, consumer price index projections, etc. Although the Village considers the economy in setting rates and fees during the budget process, the Village does not feel that these economic factors will have significant bearing on Village operations in the coming year but will continue to remain conservative in its budgeting of both revenue and expenses . The Village’s primary reliance upon stable revenue sources such as property taxes is anticipated to shelter the Village from state and federal economic factors in the short-term. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Village’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be directed to the Village Manager, Village of Kenilworth, 419 Richmond Road, Kenilworth, IL 60043. Preliminary and Tentative For Discussion Purposes Only 90 BASIC FINANCIAL STATEMENTS Preliminary and Tentative For Discussion Purposes Only 91 Governmental Business-Type Activities Activities Total ASSETS Cash and cash equivalents 16,170,376$ 811,274$ 16,981,650$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 7,907,227 - 7,907,227 Accounts 581,303 269,977 851,280 Leases 5,612,576 - 5,612,576 Prepaid items 910,679 700 911,379 Net pension asset 936,149 264,196 1,200,345 Capital assets not being depreciated 4,654,497 38,648 4,693,145 Tangible and intangible capital assets being depreciated (net of accumulated depreciation and amortization) 9,412,413 12,000,030 21,412,443 Total assets 46,185,220 13,384,825 59,570,045 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 146,057 41,219 187,276 Total deferred outflows of resources 146,057 41,219 187,276 Total assets and deferred outflows of resources 46,331,277 13,426,044 59,757,321 LIABILITIES Accounts payable 809,743 61,910 871,653 Accrued interest payable 46,048 3,113 49,161 Accrued payroll 47,068 5,263 52,331 Deposits payable 994,970 11,165 1,006,135 Due to fiduciary component units 269,243 - 269,243 Noncurrent liabilities Due within one year 1,905,148 243,188 2,148,336 Due in more than one year 19,582,073 1,071,823 20,653,896 Total liabilities 23,654,293 1,396,462 25,050,755 Primary Government VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF NET POSITION December 31, 2025 (This statement is continued on the following page.) - 4 - Preliminary and Tentative For Discussion Purposes Only 92 Governmental Business-Type Activities Activities Total DEFERRED INFLOWS OF RESOURCES Deferred revenue - property taxes 5,556,554$ -$ 5,556,554$ Leases 5,112,920 - 5,112,920 Pension items - IMRF 437,234 123,394 560,628 Pension items - police 1,064,190 - 1,064,190 Total deferred inflows of resources 12,170,898 123,394 12,294,292 Total liabilities and deferred inflows of resources 35,825,191 1,519,856 37,345,047 NET POSITION Net investment in capital assets* 2,294,801 10,793,678 11,593,250 Restricted for Public safety 141,764 - 141,764 Highways and streets 637,051 - 637,051 Economic development 2,056,373 - 2,056,373 Capital improvements 6,560,731 - 6,560,731 Retirement 936,149 264,196 1,200,345 Unrestricted (deficit) (2,120,783) 848,314 222,760 TOTAL NET POSITION 10,506,086$ 11,906,188$ 22,412,274$ December 31, 2025 Primary Government *General Obligation Bonds Series 2022 ARS were issued as governmental activities debt in part to fund capital asset acquisitions for the business-type activities. Therefore, the total column includes the total outstanding balance for these bonds (including unamortized premium and unspent proceeds), while the governmental activities column includes only the portion used to fund governmental activities capital asset acquisitions in the calculation of the net investment in capital assets. VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF NET POSITION (Continued) See accompanying notes to financial statements. - 5 - Preliminary and Tentative For Discussion Purposes Only 93 Operating Capital Charges Grants and Grants and FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General government 927,453$ 1,197,190$ 169,498$ -$ Public works 82,133 209,625 - - Public safety 3,941,834 120,921 - - Highways and streets 693,722 - - 114,772 Economic development 61,445 - - - Culture and recreation 49,217 60,090 - - Interest on long-term debt 509,518 - - - Total governmental activities 6,265,322 1,587,826 169,498 114,772 Business-Type Activities Waterworks system 1,392,251 1,176,639 - - Total business-type activities 1,392,251 1,176,639 - - TOTAL PRIMARY GOVERNMENT 7,657,573$ 2,764,465$ 169,498$ 114,772$ VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2025 Program Revenues - 6 - Preliminary and Tentative For Discussion Purposes Only 94 Net (Expense) Revenue and Change in Net Position Governmental Business-Type Activities Activities Total 439,235$ -$ 439,235$ 127,492 - 127,492 (3,820,913) - (3,820,913) (578,950) - (578,950) (61,445) - (61,445) 10,873 - 10,873 (509,518) - (509,518) (4,393,226) - (4,393,226) - (215,612) (215,612) - (215,612) (215,612) (4,393,226) (215,612) (4,608,838) General Revenues Taxes Property 5,382,377 - 5,382,377 Replacement 50,095 - 50,095 State sales 547,845 - 547,845 Utility 211,507 - 211,507 Other 48,238 - 48,238 Unrestricted Income tax 453,385 - 453,385 Investment income 820,953 34,379 855,332 Miscellaneous 850,615 4,522 855,137 Total 8,365,015 38,901 8,403,916 CHANGE IN NET POSITION 3,971,789 (176,711) 3,795,078 NET POSITION, JANUARY 1 6,534,297 12,082,899 18,617,196 NET POSITION, DECEMBER 31 10,506,086$ 11,906,188$ 22,412,274$ Primary Government See accompanying notes to financial statements. - 7 - Preliminary and Tentative For Discussion Purposes Only 95 2024A Bond/ Debt Capital Lake Front Nonmajor General Service Projects Project Governmental Total Cash and cash equivalents 3,389,727$ -$ 2,685,422$ 7,002,079$ 3,093,148$ 16,170,376$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes 5,216,008 2,517,417 - - 173,802 7,907,227 Accounts 308,362 - 2,139 232,198 38,604 581,303 Leases 5,612,576 - - - - 5,612,576 Due from other funds 853,133 - - - - 853,133 Prepaid items 910,679 - - - - 910,679 TOTAL ASSETS 16,290,485$ 2,517,417$ 2,687,561$ 7,234,277$ 3,305,554$ 32,035,294$ LIABILITIES Accounts payable 234,479$ -$ 5,250$ 516,598$ 53,416$ 809,743$ Accrued payroll 45,851 - - - 1,217 47,068 Deposits payable 994,970 - - - - 994,970 Due to other funds - 853,133 - - - 853,133 Due to fiduciary component units 269,243 - - - - 269,243 Total liabilities 1,544,543 853,133 5,250 516,598 54,633 2,974,157 DEFERRED INFLOWS OF RESOURCES Unavailable property taxes 3,786,434 1,770,120 - - - 5,556,554 Unavailable revenue - - - 156,948 - 156,948 Leases 5,112,920 - - - - 5,112,920 Total deferred inflows of resources 8,899,354 1,770,120 - 156,948 - 10,826,422 Total liabilities and deferred inflows of resources 10,443,897 2,623,253 5,250 673,546 54,633 13,800,579 FUND BALANCES Nonspendable in form - prepaid items 910,679 - - - - 910,679 Restricted for public safety 141,764 - - - - 141,764 Restricted for capital improvements - - 623,781 6,560,731 - 7,184,512 Restricted for highway and streets - - - - 637,051 637,051 Restricted for economic development - - - - 2,056,373 2,056,373 Committed for tree replacement 1,679 - - - - 1,679 Committed for sewer service - - - - 557,497 557,497 Assigned for capital improvements 200,000 - 2,058,530 - - 2,258,530 Unassigned (deficit) 4,592,466 (105,836) - - - 4,486,630 Total fund balances (deficit) 5,846,588 (105,836) 2,682,311 6,560,731 3,250,921 18,234,715 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 16,290,485$ 2,517,417$ 2,687,561$ 7,234,277$ 3,305,554$ 32,035,294$ OF RESOURCES AND FUND BALANCES LIABILITIES, DEFERRED INFLOWS VILLAGE OF KENILWORTH, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2025 ASSETS Major Funds See accompanying notes to financial statements. - 8 - Preliminary and Tentative For Discussion Purposes Only 96 FUND BALANCES OF GOVERNMENTAL FUNDS 18,234,715$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds Revenues are recognized for governmental activities when earned regardless of availability 156,948 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental fund G.O. Bonds payable - net (13,115,000) Bond premiums (1,269,410) Compensated absences payable (89,886) Lease obligation (30,000) Accrued interest on long-term liabilities is shown as a liability on the statement of net position (46,048) The net pension liability of the Police Pension Fund is shown as a liability on the statement of net position (6,620,327) Net pension liability/asset for the Illinois Municipal Retirement Fund is shown as a liability/asset on the statement of net position 936,149 Total OPEB liability is shown as a liability on the statement of net position (362,598) Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings are recognized as deferred outflows and inflows of resources in the statement of net position IMRF (291,177) Police Pension (1,064,190) NET POSITION OF GOVERNMENTAL ACTIVITIES 10,506,086$ 14,066,910 December 31, 2025 VILLAGE OF KENILWORTH, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION See accompanying notes to financial statements. - 9 - Preliminary and Tentative For Discussion Purposes Only 97 2024A Bond/ Debt Capital Lake Front Nonmajor General Service Projects Project Governmental Total REVENUES Property taxes 3,337,742$ 1,698,097$ -$ -$ 346,538$ 5,382,377$ Other taxes 1,311,069 - - - - 1,311,069 Licenses, permits and fees 858,164 - - - - 858,164 Fines and forfeitures 22,666 - - - - 22,666 Charges for services 586,526 - - - 120,471 706,997 Intergovernmental 12,550 - - - 114,772 127,322 Investment income 325,781 24,036 188,664 117,245 165,227 820,953 Miscellaneous 60,390 - - 789,956 - 850,346 Total revenues 6,514,888 1,722,133 188,664 907,201 747,008 10,079,894 EXPENDITURES Current General government 937,911 - - 1,347 - 939,258 Public works 248,724 - - - 76,572 325,296 Public safety 3,003,102 - - - - 3,003,102 Highways and streets 421,720 - - - 275,079 696,799 Economic development - - - - 61,445 61,445 Culture and recreation 47,717 - - - - 47,717 Debt service Principal retirement - 1,765,000 - - - 1,765,000 Interest and fiscal charges - 640,304 - - - 640,304 Capital outlay 37,018 - 140,244 2,884,812 28,928 3,091,002 Total expenditures 4,696,192 2,405,304 140,244 2,886,159 442,024 10,569,923 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,818,696 (683,171) 48,420 (1,978,958) 304,984 (490,029) OTHER FINANCING SOURCES (USES) Transfers in - - - 6,824,712 - 6,824,712 Transfers (out) (2,250,000) - (3,400,000) - (1,174,712) (6,824,712) Sale of capital assets 269 - - - - 269 Bonds issued - 507,700 462,300 - - 970,000 Total other financing sources (uses) (2,249,731) 507,700 (2,937,700) 6,824,712 (1,174,712) 970,269 NET CHANGE IN FUND BALANCES (431,035) (175,471) (2,889,280) 4,845,754 (869,728) 480,240 FUND BALANCES, JANUARY 1 6,277,623 69,635 5,571,591 1,714,977 4,120,649 17,754,475 FUND BALANCES (DEFICIT), DECEMBER 31 5,846,588$ (105,836)$ 2,682,311$ 6,560,731$ 3,250,921$ 18,234,715$ VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2025 See accompanying notes to financial statements. - 10 - Preliminary and Tentative For Discussion Purposes Only 98 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 480,240$ Amounts reported for governmental activities in the statement of activities are different different because: Governmental funds report capital outlay as expenditures; however, they are capitalized and depreciated in the statement of activities Capital and intangible right-to-use expenditures capitalized 2,947,869 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds Depreciation of capital assets (485,108) Amortization of intangible capital assets (15,000) Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds 156,948 The issuance of long-term debt is reported as an other financing source in governmental funds, but as an increase in debt outstanding on the statement of activities Debt issued (970,000) The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities Bonds payable 1,765,000 Leases 15,000 The change in interest payable is reported as an expense on the statement of activities 4,548 The change in certain liabilities are reported as expenses on the statement of activities Compensated absences 27,199 OPEB 50,052 Amortization is recorded as interest expense on the statement of activities including unamortized discount, unamortized premium and unamortized Unamortized bond premium 126,238 The change in net pension liability/asset is reported only on the statement of activities Illinois Municipal Retirement Fund 579,155 Police Pension 920,406 The changes in deferred outflows and deferred inflows of resources is reported only in the statement of activities Illinois Municipal Retirement Fund (489,265) Police Pension (1,141,493) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 3,971,789$ For the Year Ended December 31, 2025 VILLAGE OF KENILWORTH, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES EXPENDITURES AND CHANGES IN FUND BALANCES TO THE See accompanying notes to financial statements. - 11 - Preliminary and Tentative For Discussion Purposes Only 99 VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2025 Business-Type Activities Waterworks System CURRENT ASSETS Cash and cash equivalents 811,274$ Receivables Accounts - billed 77,321 Accounts - unbilled 192,656 Prepaid items 700 Total current assets 1,081,951 NONCURRENT ASSETS Net pension asset 264,196 Capital assets Nondepreciable capital assets 38,648 Depreciable capital assets 18,979,155 Accumulated depreciation (6,979,125) Net capital assets 12,038,678 Total noncurrent assets 12,302,874 Total assets 13,384,825 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 41,219 Total deferred outflows of resources 41,219 CURRENT LIABILITIES Accounts payable 61,910 Accrued interest 3,113 Accrued payroll 5,263 Deposits payable 11,165 Compensated absences payable 2,071 Total OPEB liability 6,117 General obligation bonds payable 235,000 Total current liabilities 324,639 (This statement is continued on the following page.) - 12 - Preliminary and Tentative For Discussion Purposes Only 100 VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF NET POSITION (Continued) PROPRIETARY FUNDS December 31, 2025 Business-Type Activities Waterworks System LONG-TERM LIABILITIES Compensated absences payable 8,284$ Total OPEB liability - RBP 53,539 General obligation bonds payable 1,010,000 Total long-term liabilities 1,071,823 Total liabilities 1,396,462 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 123,394 Total deferred inflows of resources 123,394 NET POSITION Net investment in capital assets 10,793,678 Restricted for retirement 264,196 Unrestricted 848,314 TOTAL NET POSITION 11,906,188$ See accompanying notes to financial statements. - 13 - Preliminary and Tentative For Discussion Purposes Only 101 VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2025 Business-Type Activities Waterworks System OPERATING REVENUES Charges for services 1,176,639$ Miscellaneous 4,522 Total operating revenues 1,181,161 OPERATING EXPENSES Operations 834,272 Total operating expenses 834,272 OPERATING INCOME BEFORE DEPRECIATION 346,889 Depreciation 514,441 OPERATING INCOME (LOSS) (167,552) NON-OPERATING REVENUES (EXPENSES) Investment income 34,379 Interest and fiscal charges (43,538) Total non-operating revenues (expenses) (9,159) CHANGE IN NET POSITION (176,711) NET POSITION, JANUARY 1 12,082,899 NET POSITION, DECEMBER 31 11,906,188$ See accompanying notes to financial statements. - 14 - Preliminary and Tentative For Discussion Purposes Only 102 Business-Type Activities Waterworks System CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 1,137,240$ Payments to suppliers (589,126) Payments to employees (226,848) Miscellaneous 4,522 Net cash from operating activities 325,788 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None - Net cash from noncapital financing activities - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments on capital debt (225,000) Interest payments on capital debt (43,538) Net cash from capital and related financing activities (268,538) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 33,817 Net cash from investing activities 33,817 NET INCREASE IN CASH AND CASH EQUIVALENTS 91,067 CASH AND CASH EQUIVALENTS, JANUARY 1 720,207 CASH AND CASH EQUIVALENTS, DECEMBER 31 811,274$ VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2025 (This statement is continued on the following page.) - 15 - Preliminary and Tentative For Discussion Purposes Only 103 Business-Type Activities Waterworks System RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) (167,552)$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation 514,441 Increase in Receivables (39,399) Increase (decrease) in Accounts payable 12,500 Accrued payroll 682 Deposits payable (155) Compensated absences payable 2,387 Pension items (17,153) OPEB items 20,037 NET CASH FROM OPERATING ACTIVITIES 325,788$ STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS For the Year Ended December 31, 2025 VILLAGE OF KENILWORTH, ILLINOIS See accompanying notes to financial statements. - 16 - Preliminary and Tentative For Discussion Purposes Only 104 Police Pension ASSETS Cash and cash equivalents 24,026$ Investments Investments held in the Illinois Police Officer's Pension Investment Fund 12,581,781 Receivables Due from Village 269,243 Prepaid items 825 Total assets 12,875,875 LIABILITIES Accounts payable 2,415 Total liabilities 2,415 NET POSITION RESTRICTED FOR PENSIONS 12,873,460$ VILLAGE OF KENILWORTH, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUND December 31, 2025 See accompanying notes to financial statements. - 17 - Preliminary and Tentative For Discussion Purposes Only 105 Police Pension ADDITIONS Contributions Contributions - employer 721,101$ Contributions - employee 42,796 Total contributions 763,897 Investment income Net appreciation in fair value of investments 1,905,995 Interest earned on investments 63,008 Total investment income 1,969,003 Less investment expense (10,259) Net investment income 1,958,744 Total additions 2,722,641 DEDUCTIONS Benefits 1,107,613 Administrative 27,602 Total deductions 1,135,215 NET INCREASE 1,587,426 NET POSITION RESTRICTED FOR PENSIONS January 1 11,286,034 December 31 12,873,460$ VILLAGE OF KENILWORTH, ILLINOIS FIDUCIARY FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Year Ended December 31, 2025 See accompanying notes to financial statements. - 18 - Preliminary and Tentative For Discussion Purposes Only 106 - 18 - VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2025 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Kenilworth, Illinois (the Village) have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)) . The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles . The following is a summary of the Village ’s significant accounting policies. a. Reporting Entity The Village of Kenilworth is located in Cook County. The Village is a non -home rule municipality under the 1970 Illinois Constitution. The Village is a municipal corporation governed by an elected board. The Village President and Board of Trustees are elected representatives of the citizens of the Village. The Village ’s major operations include police and fire safety, highway and street maintenance, building code enforcement, water services and general administrative services. As required by GAAP, these financial statements present the Village (the primary government) and its component units , entities for which the government is considered to be financially accountable . Financial accountability is defined as the appointment of a voting majority of the component unit ’s board, and either (1) the Village’s ability to impose its will over the component unit or (2) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the Village. In determining the financial reporting entity, the Village complies with the provisions of GASB Statement No. 61, and includes all component units that have a significant operational or financial relationship with the Village. Based upon the criteria set forth in the GASB Statement No. 61, there are no component units included in the reporting entity. However, management has determined that there is one fiduciary component unit that is required to be included in the financial statements of the Village as a pension trust fund. Police Pension Employees Retirement System The Village’s financial statements include the Police Pension Employees Retirement System (PPERS) as a fiduciary component unit reported as a pension trust fund. The Village’s sworn police employees participate in the PPERS. PPERS functions for the benefit of these employees and is governed by a five -member pension board. Two members appointed by the Village ’s President, one elected pension beneficiary and two elected police employees constitute the pension board. The participants are - 19 - Preliminary and Tentative For Discussion Purposes Only 107 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 19 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) Police Pension Employees Retirement System (Continued) required to contribute a percentage of salary as established by state statute and the Village is obligated to fund all remaining PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of the Village’s contribution levels. Accordingly, the PPERS is fiscally dependent on the Village. PPERS is reported as a pension trust fund. PPERS does not issue a stand-alone financial report. b. Fund Accounting The Village uses funds to report on its financial position, changes in its financial position and cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a s elf-balancing set of accounts . A minimum number of funds are maintained consistent with legal and managerial requirements. Funds are classified into the following categor ies: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of the Village ’s general activities, including the accounting for revenue sources that are legally restricted or committed for specific purposes (special revenue funds), accounting for funds that are restricted, committed or assigned to the acquisition of capital assets or construction of major capital projects not financed by another fund (capital projects funds) and accounting for the servicing of bonded general long -term debt using funds restricted, committed or assigned for debt service (debt service funds) . The General F und is used to account for all activities of the general government not accounted for in some other fund. Proprietary funds are used to account for activities similar to those found in the private sector, where the intent of the governing body is that costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the Village Board of Trustees has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability and other purposes. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments. The Village utilizes pension trust funds which are generally used to account for assets that the Village holds in a fiduciary capacity. - 20 - Preliminary and Tentative For Discussion Purposes Only 108 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 20 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements The statement of net position and the statement of activities display information about the Village as a whole. In the government -wide statement of net position, both the governmental and business -type activities columns are presented on a consolidated basis by column. These statements include the financial activities of the primary government, except for the fiduciary activities . The effect of material interfund activity has been eliminated from these statements . Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The government-wide statement of activities reflects both the direct expenses and net cost of each function of the Village ’s governmental activities and business -type activities. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges paid by the recipient for the goods or services offered by the program and (2) grants and standard revenues that are restricted to meeting the operational or capital requirements of a particular function or segment . Taxes and other items not properly included among program revenues are reported instead as general revenues. The comparison of direct expenses with program revenues identifies the extent to which each government function or segment is self -financing or draws from the general revenues of the Village. 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 Village reports the following major governmental funds: The General Fund is the general operating fund of the Village . It accounts for all financial resources of the general government, except those accounted for in another fund. The Debt Service Fund accounts for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The Capital Projects Fund accounts for revenue and expenditures relative to the construction of capital improvements. The Village elected to report this fund as major. The 2024A Bond/Lake Front Projects Fund accounts for revenue and expenditures relative to construction of funded by the 2024A bonds. - 21 - Preliminary and Tentative For Discussion Purposes Only 109 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 21 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements (Continued) The Village reports the following major proprietary funds: The Waterworks System Fund which accounts for the operating activities of the Village’s water utilities services. The Village reports a pension trust fund as a fiduciary fund to account for the Polic e Pension Trust Fund. d. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements and fund financial statements for proprietary and fiduciary funds are reported using the economic resources measurement focus and the accrual basis of accounting . The economic resources measurement focus means all assets and liabilities (whether current or noncurrent) are included on the statement of net position and the operating statements present additions (revenues) and deductions (expenses) in total net position. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance) . Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenues/expenses directly related to providing the day -to-day enterprise fund services . Incidental revenues/expenses , such as property taxes and investment income, are reported as non-operating. Governmental fund financial statements are accounted for using a current financial resources measurement focus and the modified accrual basis of accounting . Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period . The Village recognizes property taxes when they become both measurable and available in the period intended to finance , within 60 days of year end . A 90-day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures are recorded when the related fund liability is incurred . Principal and interest on general long -term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year. Those revenues susceptible to accrual are property taxes, sales taxes, use taxes, income taxes, utility taxes, licenses, interest revenue and charges for services . All other revenues are not susceptible to accrual because generally they are not measurable until received in cash. - 22 - Preliminary and Tentative For Discussion Purposes Only 110 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 22 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The Village reports unavailable/deferred revenue and unearned revenue on its financial statements. Unavailable/deferred revenues arise when a potential revenue does not meet both the measurable and available or earned criteria for recognition in the current period. Unearned revenues arise when resources are received by the Village before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the deferred inflow for unavailable/deferred revenue or the liability for unearned revenue is removed from the financial statements and revenue is recognized. e. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, cash deposited in interest -bearing and non-interest-bearing checking accounts, cash with fiscal agent and investments in certificates of deposit with original maturities of three months or less. For the purposes of the statement of cash f lows, the Village considers all highly liquid investments with an original maturity date of three months or less when purchased to be cash equivalents. f. Investments Investments with a maturity of less than one year when purchased, non -negotiable certificates of deposit and other nonparticipating investments are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased and all investments of the pension trust funds are stated at fair value. The Village and pension fund categorize the fair value measurements within the fair value hierarchy established by GAAP. 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 oth er observable inputs; and Level 3 inputs are significant unobservable inputs. g. Short-Term Interfund Receivables/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered . These receivables and payables are classified as “due from other funds ” or “due to other funds ” on the balance sheet . Short-term interfund loans, if any, are classified as “interfund receivables/payables.” Any residual balances between governmental activities and business -type activities are reported in the Village-wide financial statements as “internal balances.” - 23 - Preliminary and Tentative For Discussion Purposes Only 111 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 23 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) h. Advances to Other Funds Noncurrent portions of long-term interfund loan receivables are reported as advances between funds in the fund financial statements . The advances are offset equally by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. i. Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses on the consumption method. j. Receivables In the government -wide financial statements, receivables consist of all revenues earned at year -end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivable balances for governmental activities include property taxes, sales and use taxes , and grants. Business -type activities report utility charges as their major receivables. k. Capital Assets and Intangible Assets Capital assets, which include property, plant, equipment , water and sewer system , intangible assets and infrastructure assets (e.g., roads, bridges and similar items) are reported in the applicable governmental or business -type activities columns in the government-wide financial statements . Capital assets are defined by the Village as assets with an initial, individual cost in excess of $10,000 or more and a useful life of more than one year. All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist . Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. - 24 - Preliminary and Tentative For Discussion Purposes Only 112 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 24 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k. Capital Assets and Intangible Assets (Continued) All reported capital assets except land and construction in progress are depreciated. Improvements are depreciated over the remaining useful lives of the related capital assets. Depreciation of all assets is provided on the straight -line basis over the following estimated useful lives: Years Buildings and improvements 10-50 Machinery and equipment 7-10 Sanitary and sewer system 40-50 Streets 40-50 Intangible assets represent the Village’s right -to-use a leased asset. These intangible assets, as defined by GASB Statement No. 87, Leases, are for the lease contracts of nonfinancial assets, including leased equipment. l. Compensated Absences The Village implemented GASB 101, Compensated Absences , for the year ending December 31, 202 5; however, there was no material impact to the financial statements. The Village accrues accumulated unpaid vacation and associated employee-related costs when earned (or estimated to be earned) by the employee. All vacation pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. m. Long-Term Obligations In the government -wide financial s tatements and proprietary funds in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities or proprietary fund financial statements . Bond premiums and discounts, as well as gains/losses on refundings , are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount . The gain/loss on refunding is reported as a deferred inflow/outflow of resources . Bond issuance costs are expensed in the year of issuance. - 25 - Preliminary and Tentative For Discussion Purposes Only 113 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 25 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) m. Long-Term Obligations (Continued) In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period . The face amount of debt issued is reported as other financing sources . Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. n. Fund Equity/Net Position Net position represents the difference between assets, deferred outflows of resources, liabilities and deferred inflows of re sources. Net investment in capital assets, represents the book value of capital assets less any long -term debt principal outstanding issued to construct capital assets . Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the Village or through external restrictions imposed by creditors, grantors, laws or regulations of other governments. All other net position balances that do not meet the definition of restricted or net investment in capital assets are unrestricted. In the fund financial statements, governmental funds report nonspendable fund balance for amounts that are either not spendable in form or legally or contractually required to be maintained intact . Restrictions of fund balance are reported for amounts constrained by legal restrictions from outside parties for use for a specific purpose, or externally imposed by outside entities . None of the restricted fund balance result from enabling legislation adopted by the Village . Committed fund balance is constrained by formal actions of the Village ’s Board of Trustees, which is considered the Vill age’s highest level of decision -making authority. Formal actions are ordinances approved by the Board of Trustees. Assigned fund balance represents amounts constrained by the Village ’s intent to use them for a specific purpose . The Board of Trustees may delegate the authority to the Village Manager or Budget Officer. Any residual fund balance in the General Fund and deficit fund balances in other governmental funds are reported as unassigned. If an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Village will consider restricted fund balance to have been spent before unrestricted fund balance. Further, if there is an expenditure incurred for purposes for which committed, assigned or unassigned fund balance classifications could be used, then the Village will consider committed fund balance be spent before assigned fund balance, and consider assigned fund balance to be spent before unassigned fund balance. - 26 - Preliminary and Tentative For Discussion Purposes Only 114 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 26 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) n. Fund Equity/Net Position (Continued) The Village has established a fund balance policy in its General Fund to have unrestricted fund balance of between 55% to 70% (6.6 to 8.4 months) of operating expenditures. Special Revenue Funds, after restricting fund balance derived from property taxes, should have a minimum remaining fund balance of 25% of annual budgeted expenditures. Debt Service Funds, after restricting fund balance derived from property taxes, should have a maximum remaining fund balance of the amount of the next principal and interest payment due . The Enterprise Fund’s restricted net position targets should represent between 33% to 42% ( four to five months) of operating expenses (excluding debt service and capitalized asset expenses). The Village has not adopted specific policies for the Capital Projects Funds. o. Interfund Transactions Interfund services are accounte d for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except interfund services and reimbursements, are reported as transfers. p. Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. q. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. - 27 - Preliminary and Tentative For Discussion Purposes Only 115 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 27 - 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) q. Deferred Outflows/Inflows of Resources (Continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 2. DEPOSITS AND INVESTMENTS The Village and pension funds categorizes the fair value measurements within the fair value hierarchy established by GAAP. 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; and Level 3 inputs are significant unobservable inputs. a. Village The Village maintains a cash and investment pool that is available for use by all funds, except the pension trust fund . Each fund’s portion of this pool is displayed on the financial statements as cash and investments. In addition, investments are separately held by several of the Village’s funds. The deposits and investments of the pension trust fund are held separately from those of other funds. Permitted Deposits and Investments - Statutes authorize the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. agencies, obligations of states and their political subdivisions, credit union shares, repurchase agreements, commercial paper rated within the three highest classifications by at least two standard rating services and The Illinois Funds. The Village ’s investment policy limits deposits to financial institutions that are members of the FDIC system are capable of posting collateral for amounts in excess of FDIC insurance. The Illinois Public Treasurers ’ Investment Pool, known as The Illinois Funds, operates as a qualified external investment pool in accordance with the criteria established in GASB Statement No. 79, Certain External Investment Pools and Pool Participants, and thus, reports all investments at amortized cost rather than fair value. The investment in The Illinois Funds by participants is also reported at amortized cost. The Illinois Funds does not have any limitations or restrictions on participant withdrawals. The Illinois Treasurer’s Office issues a separate financial report for The Illinois Funds which may be obtained by contacting the Administrative Office at Illinois Business Center, 400 West Monroe Street, Suite 401, Springfield, Illinois 62704. - 28 - Preliminary and Tentative For Discussion Purposes Only 116 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 28 - 2. DEPOSITS AND INVESTMENTS (Continued) b. Village Deposits with Financial Institutions It is the policy of the Village to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds, using the “prudent person ” standard for managing the overall portfolio. The primary objectives of the policy are in order of priority, safety of principal, liquidity and rate of return. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Village ’s investment policy limits its exposure by structuring the portfolio to provide liquidity for short and long -term cash flow needs while providing a reasonable rate of return based on the current market. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Besides investing in instruments authorized under State Statute, the Village ’s investment policy further limits investment choices to external investment pools. At year end, the Village’s investment in The Illinois Funds is rated AAAm by Standard & Poor’s. Custodial credit risk for deposits is the risk that in the event of a bank failure, the Village’s deposits may not be returned to it. The Village’s investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by the Vil lage or an independent third -party evidenced by a safekeeping agreement. At December 31, 202 5, the Village had no uncollateralized deposits. Concentration of credit risk is the risk of loss attributed to the magnitude of the Village’s investment in a single issuer. The Village ’s investment policy requires diversification of investments to avoid unreasonable risk by limiting commercial paper to the lesser of 20% of the cash and investment balance at the time of placement or 25% of the cash and investment balance. At year end, the Village does not have any investments over 5 % of the total cash and investment portfolio (other than investments issued or explicitly guaranteed by the U.S. Government and investments in mutual funds, external investment pools and other pooled investments). - 29 - Preliminary and Tentative For Discussion Purposes Only 117 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 29 - 2. DEPOSITS AND INVESTMENTS (Continued) b. Village Deposits with Financial Institutions (Continued) Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Village’s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the Village ’s agent separate from where the investment was purchased. The Illinois Funds are not subject to custodial credit risk. The Village had no investments measured at fair value at December 31, 2025. 3. RECEIVABLES - TAXES Property taxes for 2024 attach as an enforceable lien on January 1 , 2024. Taxes are levied in December of the subsequent fiscal year (by passage of a Tax Levy Ordinance) . Tax bills are prepared by the County and issued on or about February 1 and July 1 and are payable in two installments, on or about March 1 and August 1. The County collects such taxes and remits them periodically . The allowance for uncollectible taxes has been stated at 1% of the tax levy to reflect actual collection experience . The second installment of the 202 4 tax levy bills were issued in November 202 5 with payments due December 1, 2025, resulting in final collections of the 2024 levy not occurring until January and February 2026. For governmental fund types and governmental activities, only property taxes which are intended to finance the current fiscal year and collected within 60 days subsequent to year end are recorded as revenue. - 30 - Preliminary and Tentative For Discussion Purposes Only 118 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 30 - 4. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2025 was as follows: Beginning Balances Increases Decreases Ending Balances GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land and right of way $ 780,088 $ - $ - $ 780,088 Construction in progress 993,450 2,880,959 - 3,874,409 Total capital assets not being depreciated 1,773,538 2,880,959 - 4,654,497 Capital assets being depreciated Buildings and improvements 2,192,911 39,910 - 2,232,821 Machinery and equipment 1,554,926 - - 1,554,926 Sanitary and sewer systems 4,904,047 - - 4,904,047 Streets 6,779,669 27,000 - 6,806,669 Total capital assets being depreciated 15,431,553 66,910 - 15,498,463 Intangible capital assets being amortized Equipment 75,000 - - 75,000 Total intangible capital assets being amortized 75,000 - - 75,000 Less accumulated depreciation for Buildings and improvements 1,279,413 63,253 - 1,342,666 Machinery and equipment 1,277,714 60,982 - 1,338,696 Sanitary and sewer systems 2,115,633 88,966 - 2,204,599 Streets 968,182 271,907 - 1,240,089 Total accumulated depreciation 5,640,942 485,108 - 6,126,050 Less accumulated amortization for intangible capital assets Equipment 20,000 15,000 - 35,000 Total accumulated amortization 20,000 15,000 - 35,000 Total tangible and intangible capital assets being depreciated and amortized, net 9,845,611 (433,198) - 9,412,413 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 11,619,149 $ 2,447,761 $ - $ 14,066,910 - 31 - Preliminary and Tentative For Discussion Purposes Only 119 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 31 - 4. CAPITAL ASSETS (Continued) Beginning Balances Increases Decreases Ending Balances BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land and right of way $ 38,648 $ - $ - $ 38,648 Total capital assets not being depreciated 38,648 - - 38,648 Capital assets being depreciated Buildings 18,457,889 - - 18,457,889 Machinery and equipment 521,266 - - 521,266 Total capital assets being depreciated 18,979,155 - - 18,979,155 Less accumulated depreciation for Buildings 6,142,983 477,840 - 6,620,823 Machinery and equipment 321,701 36,601 - 358,302 Total accumulated depreciation 6,464,684 514,441 - 6,979,125 Total capital assets being depreciated, net 12,514,471 (514,441) - 12,000,030 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 12,553,119 $ (514,441) $ - $ 12,038,678 Depreciation/amortization expense was charged to functions/programs of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 13,109 Public safety 49,891 Public works 422,108 DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 485,108 GOVERNMENTAL ACTIVITIES Public safety $ 15,000 TOTAL AMORTIZATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 15,000 BUSINESS-TYPE ACTIVITIES Waterworks system $ 514,441 DEPRECIATION EXPENSE - BUSINESS-TYPE ACTIVITIES $ 514,441 - 32 - Preliminary and Tentative For Discussion Purposes Only 120 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 32 - 5. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; illnesses of employees; and natural disasters. The Village currently reports all of its risk management activities in its General Fund. The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of Illinois municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperations Statute to pool its risk management needs. IRMA administers a mix of self - insurance and commercial insurance coverages; property/casualty and workers ’ compensation claim administration and litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting services for its members. Each member appoints one delegate along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual member ’s eligible revenue as defined in the by -laws of IRMA and experience modification factors based on past member loss experience. Each member assumes the first $10,000 of each occurrence, and IRMA has self -insurance retentions at various amounts above that level. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. The Village ’s payments to IRMA are displayed on the financial statements as expenditures in the appropriate fund. The coverages provided by IRMA are generally consistent with the coverages in the prior year. Health Insurance The Village participates in the North Suburban Employee’s Benefit Cooperative (NSEBC), an agency of governmental entities created to finance and administer medical and dental care benefits to employees of its member organizations. Each municipality appoints one representative to serve on the Board of Directors. The Board of Directors determines the general policies, which includes approval of the annual budget. Members are contractually obligated to make all monthly payments and to fund any deficit upon dissolution of the pool. They will share in any surplus of the pool based on a decision by the Board of Directors. There were no significant changes in insurance coverages from the prior year and settlements did not exceed insurance coverage in any of the past three fiscal years. The Village reports insurance activities within the General Fund and Waterworks System Fund. The Village’s total payments for the year ended December 31, 2025 were $337,282. - 33 - Preliminary and Tentative For Discussion Purposes Only 121 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 33 - 6. LONG-TERM DEBT a. Changes in Long-Term Liabilities During the fiscal year, the following changes occurred in governmental and business-type activities long-term liabilities: Balances January 1 Additions Reductions/ Refundings Balances December 31 Current Portion GOVERNMENTAL ACTIVITIES General obligation bonds $ 13,910,000 $ 970,000 $ 1,765,000 $ 13,115,000 $ 1,835,000 Unamortized bond premium 1,395,648 - 126,238 1,269,410 - Leases 45,000 - 15,000 30,000 15,000 Net pension liability - Police Pension 7,540,733 - 920,406 6,620,327 - Compensated absences 117,085 - 27,199 89,886 17,977 Total OPEB liability 412,650 - 50,052 362,598 37,171 TOTAL GOVERNMENTAL ACTIVITIES $ 23,421,116 $ 970,000 $ 2,903,895 $ 21,487,221 $ 1,905,148 BUSINESS-TYPE ACTIVITIES General obligation bonds $ 1,470,000 $ - $ 225,000 $ 1,245,000 $ 235,000 Compensated absences 7,968 2,387 - 10,355 2,071 Total OPEB liability 39,619 20,037 - 59,656 6,117 TOTAL BUSINESS-TYPE ACTIVITIES $ 1,517,587 $ 22,424 $ 225,000 $ 1,315,011 $ 243,188 For governmental activities, the net pension liabilities and the total OPEB liability are liquidated by the General Fund. The general obligation bonds are being liquidated by the Debt Service Fund. For the business -type activities, the net pension liability, the total OPEB liability and the general obligations bonds are liquidated by the Waterworks System Fund. The change in compensated absences is reported net of increases and decreases. At December 31, 2025 the Village reports an IMRF net pension asset. b. General Obligation Bonds The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities, refunding prior issuances and providing working capital for the Village. - 34 - Preliminary and Tentative For Discussion Purposes Only 122 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 34 - 6. LONG-TERM DEBT (Continued) b. General Obligation Bonds (Continued) General obligation bonds are direct obligations and pledge the full faith and credit of the Village and are payable from governmental activities/funds. General obligation bonds currently outstanding are as follows: Issue Fund Debt Retired By Balances January 1 Additions Reductions/ Refundings Balances December 31 Current Portion General Obligation (Alternate Revenue Source) Refunding Bonds of 2015A - due in annual installments of $165,000 to $265,000 plus interest at 3% through December 1, 2030. Waterworks System Fund $ 1,470,000 $ - $ 225,000 $ 1,245,000 $ 235,000 General Obligation (Alternate Revenue Source) Bonds of 2022 - due in annual installments of $200,000 to $575,000 plus interest at 3% to 4% on December 1, 2037. Debt Service Fund 5,975,000 - 390,000 5,585,000 405,000 General Obligation Bonds Series 2024A - due in annual installment of $440,000 to $750,000 plus interest at 5% through December 1, 2036. Debt Service Fund 7,000,000 - 440,000 6,560,000 460,000 General Obligation Limited Bonds Series 2024B - due in one installment of $935,000 plus interest at 5% on December 1, 2025. Debt Service Fund 935,000 - 935,000 - - General Obligation Limited Tax Bonds of 2025 - due in one installment of $970,000 plus interest at 3.07% on December 1, 2026. Debt Service Fund - 970,000 - 970,000 970,000 TOTAL GENERAL OBLIGATION BONDS $ 15,380,000 $ 970,000 $ 1,990,000 $ 14,360,000 $ 2,070,000 - 35 - Preliminary and Tentative For Discussion Purposes Only 123 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 35 - 6. LONG-TERM DEBT (Continued) c. Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: General Obligation Bonds Fiscal Governmental Activities Business-Type Activities Year Principal Interest Total Principal Interest Total 2026 $ 1,835,000 $ 552,579 $ 2,387,579 $ 235,000 $ 37,350 $ 272,350 2027 905,000 483,600 1,388,600 240,000 30,300 270,300 2028 945,000 442,550 1,387,550 250,000 23,100 273,100 2029 990,000 399,650 1,389,650 255,000 15,600 270,600 2030 1,030,000 354,700 1,384,700 265,000 7,950 272,950 2031 1,080,000 307,900 1,387,900 - - - 2032 1,130,000 258,800 1,388,800 - - - 2033 1,175,000 212,500 1,387,500 - - - 2034 1,225,000 164,250 1,389,250 - - - 2035 1,275,000 113,800 1,388,800 - - - 2036 1,325,000 61,250 1,386,250 - - - 2037 200,000 6,500 206,500 - - - TOTAL $ 13,115,000 $ 3,358,079 $ 16,473,079 $ 1,245,000 $ 114,300 $ 1,359,300 d. Pledged Revenues The Village has pledged the net revenues (operating income before depreciation) of the Waterworks System Fund and taxes imposed by the Village upon public utilities pursuant to Section 8 -11-2 of the Illinois Municipal Code, as amended (gas and electric utility taxes) to the Series 2015A General Obligation Refunding Bonds (Alternate Revenue Source). For the year ended December 31, 202 5, the total pledge (principal and interest) of $269,100 was 77.58% of the total pledged revenues of $ 346,889 (as defined above). The remaining pledge at December 31, 2025 was $1,359,300. In addition to proceeds received by the Village from the issuance of its general obligation bonds or notes to the extent permissible by law, t he Village has pledged certain governmental revenues to the Series 20 22 General Obligation Bonds (Alternate Revenue Source). For the year ended December 31, 202 5, the total pledge (principal and interest) of $600,400 was 61.89% of the total pledged revenues of $9 70,000. The remaining pledge at December 31, 2025 was $6,786,050. - 36 - Preliminary and Tentative For Discussion Purposes Only 124 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 36 - 6. LONG-TERM DEBT (Continued) e. Leases Obligations of governmental activities under leases payable, typically paid from the General fund, including future interest payments at December 31, 202 5, were as follows: Fiscal Year Ending Leases December 31, Principal Interest 2026 $ 15,000 $ - 2027 15,000 - TOTAL $ 30,000 $ - The Village entered into a lease arrangement for the right -to-use license plate reading equipment. Payments of $ 15,000 are due annually through July 2027. Total intangible right-to-use assets acquired under this agreement are $75,000. f. Legal Debt Margin Chapter 65, Section 5/8 -5-1 of the Illinois Compiled Statutes provides, “...no municipality having a population of less than 500,000 shall become indebted in any manner or for any purpose, to an amount, including existing indebtedness in the aggregate exceeding 8.625% on the value of the taxable property therein, to be ascertained by the last assessment for state and county purposes, previous to the incurring of the indebtedness or, until January 1, 1983, if greater, the sum that is produced by multiplying the municipality’s 1978 equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979.” 2024 equalized assessed valuation $ 393,629,394 Debt limitation - 8.625% of assessed valuation $ 33,950,535 Amount of debt applicable to debt limit 7,530,000 LEGAL DEBT MARGIN $ 26,420,535 - 37 - Preliminary and Tentative For Discussion Purposes Only 125 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 37 - 7. INDIVIDUAL FUND DISCLOSURES a. Transfers In/Out Interfund transfers during the year ended December 31 , 20 25 consisted of the following: Fund Transfers In Transfers Out General $ - $ 2,250,000 2024A Bond/Lake Front Project 6,824,712 - Nonmajor Governmental 2023 Capital Infrastructure - 1,174,712 Capital Projects - 3,400,000 TOTAL $ 6,824,712 $ 6,824,712 The purpose of significant transfers is as follows: • $6,824,712 transfer from the General fund, 2023 Capital Infrastructure fund, and Capital Projects fund for capital projects . These amounts will not be repaid. b. Due To/From Due to/due from during the year ended December 31 , 20 25 consisted of the following: Fund Due To Due From General $ - $ 853,133 Debt Service 853,133 - TOTAL $ 853,133 $ 853,133 The purpose of significant transactions is as follows: • $853,133 due to the Debt Service fund from the General fund to alleviate a cash deficit. Repayment is expected within one year. - 38 - Preliminary and Tentative For Discussion Purposes Only 126 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 38 - 8. CONTINGENT LIABILITIES a. Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the Village ’s attorney that resolution of these matters will not have a material adverse effect on the financial condition of the Village. b. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government . Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. c. Solid Waste Agency of Northern Cook County The Village ’s contract with the Solid Waste Agency of Northern Cook County (SWANCC) provides that each member is liable for its proportionate share of any costs arising from defaults in payment obligations by other members. 9. JOINT VENTURE The Village is a member of SWANCC which consists of 23 municipalities. SWANCC is a municipal corporation and public body politic established pursuant to the Constitution Act of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended. SWANCC is empowered to plan, construct, finance, operate and maintain a solid waste disposal system to serve its members. SWANCC is governed by a Board of Directors which consists of one appointed representative from each member municipality. Each Director has an equal vote. The officers of SWANCC are appointed by the Board of Directors. The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves, contracts, adopts resolutions providing for the issuance of bonds or notes by SWANCC, adopts by -laws, rules and regulations and exercises such powers and performs such duties as may be prescribed in the SWANCC agreement or the by -laws. Separate audited financial statements are available at 77 W. Hintz Road, Suite 200 Wheeling, IL 60090. - 39 - Preliminary and Tentative For Discussion Purposes Only 127 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 39 - 9. JOINT VENTURE (Continued) Revenues of the system consist of: (a) all receipts derived from Solid Waste Disposal Contracts or any other contracts for the disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees, service charges, and all grants, rents and receipts derived by SWANCC from the ownership and operation of the system. SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all of its requirements. SWANCC has entered into Solid Waste Disposal Contracts with the member municipalities. The contracts are irrevocable, and may not be terminated or amended, except as provided in the contract. Each member is obligated, on a “take or pay” basis, to purchase or in any event to pay for a minimum annual cost of the system. The obligation of the Village to make all payments as required by this contract is unconditional and irrevocable, without regard to performance or nonperformance by SWANCC of its obligations under this contract. The payments required to be made by the Village under this contract are required to be made solely from revenues to be derived by the Village from the operation of the refuse collection system. The Village is not prohibited by the contract from using any other funds to make the payments required by the contract. The contract shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. In accordance with the joint venture agreement, the Village remitted $44,156 to SWANCC for the year ended December 31, 2025, which is recorded in the Village’s General Fund. 10. LESSOR DISCLOSURES In accordance with GASB Statement No. 87, Leases, the Village ’s lessor activity is as follows: The Village entered into a lease arrangement on March 1, 2022 , to lease tower space. Payments ranging from $ 4,800 to $13,113 are due to the Village in monthly installments, through February 2057 . The lease agreement is noncancelable and maintains an interest rate of 1.5 41%. During the fiscal year, the Village collected $ 62,636 and recognized a $73,507 reduction in the related deferred inflow of resource s. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $ 2,488,534 and $2,296,882, respectively, as of December 31, 2025. The Village entered into a lease arrangement on May 1, 2022 , to lease tower space. Payments ranging from $ 4,800 to $13,113 are due to the Village in monthly installments, through April 2057. The lease agreement is noncancelable and maintains an interest rate of 2.567%. During the fiscal year, the Village collected $ 62,636 and recognized a $ 61,196 reduction in the related deferred inflow of resource s. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $ 2,116,846 and $ 1,922,425, respectively, as of December 31, 2025. - 40 - Preliminary and Tentative For Discussion Purposes Only 128 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 40 - 10. LESSOR DISCLOSURES (Continued) The Village entered into a lease arrangement on March 1, 202 2, to lease tower space. Payments ranging from $ 4,800 to $8,669 are due to the Village in monthly installments, through November 2042. The lease agreement is noncancelable and maintains an interest rate of 3.726%. During the fiscal year, the Village collected $ 62,636 and recognized a $52,574 reduction in the related deferred inflow of resource. The remaining lease receivable and offsetting deferred inflow of resource for this agreement is $ 1,007,196 and $893,613, respectively, as of December 31, 2025. 11. EMPLOYEE RETIREMENT SYSTEMS The Village contributes to two defined benefit pension plans, Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer public employee retirement systems and the Police Pension Plan which is a single -employer pension plan. The benefits, benefit levels, employee contributions and employer contributions for all plans are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly. None of the pension plans issue separate reports on the pension plans. However, 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. The Police Pension Plan does not issue a separate financial report. The table below is a summary for all pension plans as of and for the year ended December 31, 2025: Police IMRF Pension Total Net pension asset $ 1,200,345 $ - $ 1,200,345 Net pension liability - 6,620,327 6,620,327 Deferred outflows of resources 187,276 - 187,276 Deferred inflows of resources 560,628 1,064,190 1,624,818 Pension expense (income) (100,878) 942,188 841,310 a. Plan Descriptions Illinois Municipal Retirement Fund Plan Administration All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. - 41 - Preliminary and Tentative For Discussion Purposes Only 129 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 41 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Plan Administration (Continued) The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Plan Membership At December 31, 2025, IMRF membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 26 Inactive employees entitled to but not yet receiving benefits 20 Active employees 9 TOTAL 55 Benefits Provided IMRF provides two tiers of pension benefits. Employees hired prior to January 1, 2011 are eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight years of service. Participating members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equa l to 1 2/3% of their final rate of earnings, for each ye ar of credited service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011 are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of credited service are entitled to an annual retirement benefit, payable monthly fo r life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2% for each year thereafter. IMRF also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. Contributions Participating members are required to contribute 4.50% of their annual covered salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer contribution rate for the calendar year ended December 31, 2025 was .74% of covered payroll. - 42 - Preliminary and Tentative For Discussion Purposes Only 130 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 42 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Actuarial Assumptions The Village’s net pension liability was measured as of December 31, 202 5 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of the same date using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2025 Actuarial cost method Entry-age normal Assumptions Inflation 2.25% Salary increases 2.85% to 13.75% Interest rate 7.25% Cost of living adjustments 3.00% Asset valuation method Fair value For nondisabled retirees, the Pub -2010, Amount -Weighted, below -median income, General, Retiree, Male (adjusted 10 8%) and Female (adjusted 10 6.4%) tables and future mortality improvements projected using scale MP -2021. For disabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Disabled Retiree, Male and Female (both unadjusted) tables and future mortality improvements projected using scale MP -2021. For active members, the Pub -2010, Amount-Weighted, below -median income, General, Employee, Male and Female (both unadjusted) tables and future mortality improvements projected using scale MP-2021. Discount Rate The discount rate used to measure the total pension liability wa s 7.25%. 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 the Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. - 43 - Preliminary and Tentative For Discussion Purposes Only 131 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 43 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Discount Rate (Continued) Based on those assumptions, the Village’s 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 pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense, and inflation) are developed for each major asset class. These ranges are combined to produce the long -term expected rate of return by weighting the expected future real rates of return to the target asset allocation percentage and adding expected inflation. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Portfolio Target Percentage Long-Term Expected Real Rate of Return Domestic equity 33.50% 4.35% International equity 18.00% 5.40% Fixed income 24.50% 5.20% Real estate 10.50% 6.40% Alternative investments 12.50% 4.85% to 6.25% Cash equivalents 1.00% 3.60% TOTAL 100.00% - 44 - Preliminary and Tentative For Discussion Purposes Only 132 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 44 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Changes in the Net Pension Liability (Asset) (a) Total Pension Liability (b) Plan Fiduciary Net Position (a) - (b) Net Pension Liability (Asset) BALANCES AT JANUARY 1, 2025 $ 8,975,814 $ 9,438,841 $ (463,027) Changes for the period Service cost 67,064 - 67,064 Interest 628,578 - 628,578 Difference between expected and actual experience 397,959 - 397,959 Changes in assumptions - - - Employer contributions - 6,165 (6,165) Employee contributions - 37,494 (37,494) Net investment income - 1,508,136 (1,508,136) Benefit payments and refunds (678,605) (678,605) - Administrative expense - - - Other (net transfer) - 279,124 (279,124) Net changes 414,996 1,152,314 (737,318) BALANCES AT DECEMBER 31, 2025 $ 9,390,810 $ 10,591,155 $ (1,200,345) During 2025, there were no changes in assumptions. - 45 - Preliminary and Tentative For Discussion Purposes Only 133 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 45 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2025, the Village recognized pension expense of ($100,878). At December 31 , 20 25, the Village reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 187,276 $ - Changes in assumption - - Net difference between projected and actual earnings on pension plan investments - 560,628 TOTAL $ 187,276 $ 560,628 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending December 31, 2026 $ 313,307 2027 (294,573) 2028 (224,743) 2029 (167,343) 2030 - Thereafter - TOTAL $ (373,352) - 46 - Preliminary and Tentative For Discussion Purposes Only 134 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 46 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Discount Rate Sensitivity The following is a sensitivity analysis of the net pension liability (asset) to changes in the discount rate. The table below presents the net pension liability (asset) of the Village calculated using the discount rate of 7. 25% as well as what the Village’s net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (6. 25%) or 1 percentage point higher (8. 25%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (6.25%) (7.25%) (8.25%) Net pension liability (asset) $ (260,224) $ (1,200,345) $ (1,951,677) Police Pension Plan Plan Administration 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 contributions levels are governed by Illinois Compiled Statutes (Chapter 40 - Article 5/3) and can be amended only by the Illinois legislature . The Village accounts for the Police Pension Plan as a pension trust fund. The plan is governed by a five -member Board of Trustees. Two members of the Board of Trustees are appointed by the Village ’s Mayor, one member is elected by pension beneficiaries and two members are elected by active police employees. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. - 47 - Preliminary and Tentative For Discussion Purposes Only 135 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 47 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Plan Membership At December 31, 2025, the Police Pension Plan’s membership consisted of: Inactive plan members currently receiving benefits 15 Inactive plan members entitled to benefits but not yet receiving them 1 Active plan members 2 TOTAL 18 Benefits Provided The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and disability benefits . Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to ½ of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater . The annual benefit shall be increased by 2.5 0% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary . Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit . The monthly benefit of a police officer who retired with 20 or more years of service after May 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the greater of the average monthly salary obtaining by dividing the total salary during the 48 consecutive months of service within the last of 60 months in which the total salary was the highest by the number of months in that period; or the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. - 48 - Preliminary and Tentative For Discussion Purposes Only 136 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 48 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Benefits Provided (Continued) Police officers’ salary for pension purposes is capped at $106,800, plus the amount automatically increases by the lesser of ½ of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.5 0% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary . Employees with at least ten years may retire at or after age 50 and receive a reduced benefit (i.e. , 1/2% for each month under 55) . The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the May 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later . Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or ½ of the change in the Consumer Price Index for the proceeding calendar year. Contributions Employees are required by ILCS to contribute 9.91% of their base salary to the Police Pension Plan . If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest . The Village is required to contribute the remaining amounts necessary to finance the Police Pension Plan and the administrative costs as actuarially determined by an enrolled actuary . Effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service cost for the Police Pension Plan. The Village has chosen to fund 100% of the past service cost for the Police Pension Plan by 2040. The employer contribution for the fiscal year ended December 31, 2025 was 166.98% of covered payroll. Illinois Police Officers’ Pension Investment Fund The Illinois Police Officers ’ Pension Investment Fund (IPOPIF) is an investment trust fund responsible for the consolidation and fiduciary management of the pension assets of Illinois suburban and downstate police pension funds. IPOPIF was created by Public Act 101 -0610 and codified within the Illinois Pension Code, becoming effective January 1, 2020, to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring assets are available to fund pension benefits for the beneficiaries of the participating pension funds as defined in 40 ILCS 5/22B-105. Participation in IPOPIF by Illinois suburban and downstate police pension funds is mandatory. - 49 - Preliminary and Tentative For Discussion Purposes Only 137 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 49 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Deposits with Financial Institutions The plan retains all of its available cash with one financial institution. Available cash is determined to be that amount which is required for the current expenditures of the plan. The excess of available cash is required to be transferred to IPOPIF for purposes of the long-term investment for the plan. Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank ’s failure, the Fund ’s deposits may not be returned to them. The plan’s investment policy requires pledging of collateral for all bank balances held in the plan’s name in excess of federal depository insurance, at amounts ranging from 110% to 115% of the fair market value of the funds secured, with the collateral held by an independent third party or the Federal Reserve Bank. Investments Investments of the plan are combined in a commingled external investment pool and held by IPOPIF. A schedule of investment expenses is included in IPOPIF ’s annual report. For additional information on IPOPIF ’s investments, please refer to their annual report as of June 30, 202 5. A copy of that report can be obtained from IPOPIF at 456 Fulton Street, Suite 402, Peoria, IL 61602 or at www.ipopif.org. Fair Value Measurement The plan categorizes fair value measurements within the fair value hierarchy established by GAAP. 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; and Level 3 inputs are significant unobservable inputs. The plan held no investments subject to fair value measurement at December 31, 2025. - 50 - Preliminary and Tentative For Discussion Purposes Only 138 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 50 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Net Asset Value The Net Asset Value (NAV) of the plan’s pooled investment in IPOPIF was $12,581,781 at December 31, 202 5. The pooled investments consist of the investments as noted in the target allocation table below. Investments in IPOPIF are valued at IPOPIF ’s share price, which is the price the investment could be sold. There are no unfunded commitments at December 31, 202 5. The plan may redeem shares with a seven calendar day notice. IPOPIF may, at its sole discretion and based on circumstances, process redemption requests with fewer than a seven calendar day notice. Regular redemptions of the same amount on a particular day of the month may be arranged with IPOPIF. Investment Policy IPOPIF’s investment policy was originally adopted by the Board of Trustees on December 17, 2021. IPOPIF has the authority to invest trust fund assets in any type of security subject to the requirements and restrictions set forth in the Illinois Pension Code and is not restricted by the Pension Code sections that pertain exclusively to the Article 3 participating police pension funds. IPOPIF shall be subject to the provisions of the Illinois Pension Code including, but not limited to, utilization of emerging investment managers and utilization of businesses owned by minorities, women and persons with disabilities. Investment Rate of Return For the year ended December 31, 2025, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 17.79%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. - 51 - Preliminary and Tentative For Discussion Purposes Only 139 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 51 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation p erformed as of December 31, 2025 using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2025 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 3.50% to 11.00% Interest rate 6.75% Cost of living adjustments 3.00% Asset valuation method Fair value Mortality rates were based on the PubS-2010 Mortality Tables projected five years past the valuation date with Scale MP-2021. Discount Rate The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that plan members contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution related and the member rate. Based on these assumptions, the pension plan ’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. - 52 - Preliminary and Tentative For Discussion Purposes Only 140 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 52 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Changes in the Net Pension Liability (a) Total Pension Liability (b) Plan Fiduciary Net Position (a) - (b) Net Pension Liability BALANCES AT JANUARY 1, 2025 $ 18,826,767 $ 11,286,034 $ 7,540,733 Changes for the period Service cost 131,678 - 131,678 Interest 1,242,313 - 1,242,313 Changes of benefit terms - - - Difference between expected and actual experience 400,642 - 400,642 Changes in assumptions - - - Employer contributions - 721,101 (721,101) Employee contributions - 42,796 (42,796) Net investment income - 1,958,744 (1,958,744) Benefit payments and refunds (1,107,613) (1,107,613) - Administrative expense - (27,602) 27,602 Other (net transfer) - - - Net changes 667,020 1,587,426 (920,406) BALANCES AT DECEMBER 31, 2025 $ 19,493,787 $ 12,873,460 $ 6,620,327 As of December 31, 202 5, the Plan Fiduciary Net Position as a percentage of the Total Pension Liability was 66.04%. - 53 - Preliminary and Tentative For Discussion Purposes Only 141 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 53 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Discount Rate Sensitivity The following is a sensitive analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6 .75% as well as what the Village’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (5.75%) (6.75%) (7.75%) Net pension liability $ 9,152,971 $ 6,620,327 $ 4,543,082 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2025, the Village recognized pension expense of $942,188. At December 31 , 20 25, the Village reported deferred outflows of resources and deferred inflows of resources related to the Police Pension Plan from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ - $ - Changes in assumption - - Net difference between projected and actual earnings on pension plan investments - 1,064,190 TOTAL $ - $ 1,064,190 - 54 - Preliminary and Tentative For Discussion Purposes Only 142 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 54 - 11. EMPLOYEE RETIREMENT SYSTEMS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to the Police Pension Plan will be recognized in pension expense as follows: Year Ending December 31, 2026 $ (106,763) 2027 (421,635) 2028 (293,898) 2029 (241,894) 2030 - Thereafter - TOTAL $ (1,064,190) 12. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the Village provides postemployment health care benefits (OPEB) for retired employees through a single-employer defined benefit plan (the Plan). The benefits, benefit levels, employee contributions and employer contributions are governed by the Village and can be amended by the Village through its personnel manual. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate report. The activity of the Plan is reported in the Village’s governmental activities. The Plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. - 55 - Preliminary and Tentative For Discussion Purposes Only 143 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 55 - 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) b. Benefits Provided The Village provides postretirement health insurance to its eligible employees until the age of 65 (enrolled at time of employee ’s retirement). To be eligible for benefits, the employee must qualify for retirement under IMRF or meet COBRA requirements. The liability is based on an implicit subsidy; the Village had no explicit subsidies. For certain disabled employees who qualify for health insurance benefits under the Public Safety Employee Benefits Act (PSEBA), the Village is required to pay 100% of the cost of basic health insurance for the employee and their dependents for their lifetime. c. Membership At December 31, 2025, membership consisted of: Inactive fund members or beneficiaries currently receiving benefit payments 2 Inactive fund members entitled to but not yet receiving benefit payments - Active fund members 16 TOTAL 18 Participating employers 1 d. Total OPEB Liability The Village’s total OPEB liability was measured as of December 31, 2025, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of January 1, 2026. - 56 - Preliminary and Tentative For Discussion Purposes Only 144 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 56 - 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) d. Total OPEB Liability (Continued) The total OPEB liability at December 31, 202 5, as determined by an actuarial valuation as of January 1, 202 6 using the alternative measurement method, was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified. Actuarial valuation date January 1, 2026 Measurement date December 31, 2025 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Discount rate 4.83% Healthcare cost trend rates 7.90% to 8.30% Initial 5.00% Ultimate Asset valuation method N/A Mortality rates were based on the PubG-2010(B) and PuS-2010(A) studies improved generationally using MP-2021 improvement rates. e. Discount Rate The discount rate used to measure the total OPEB liability was 4.83% (4.08% in the prior year). The discount rate was bas ed on the S&P Municipal Bond 20-year high- grade rate index rate for tax -exempt general obligation municipal bonds rated AA or better at December 31, 2025. - 57 - Preliminary and Tentative For Discussion Purposes Only 145 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 57 - 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) f. Changes in the Total OPEB Liability Total OPEB Liability BALANCES AT JANUARY 1, 2025 $ 452,269 Changes for the period Service cost 13,177 Interest 17,570 Changes of benefit terms - Difference between expected and actual experience - Changes in assumptions (17,474) Net investment income - Benefit payments and refunds (43,288) Administrative expense - Net changes (30,015) BALANCES AT DECEMBER 31, 2025 $ 422,254 During 2025, there were changes in assumptions with respect to a change in discount rate from 4.08% to 4.83%. g. Rate Sensitivity The following is a sensitive analysis of the total OPEB liability to changes in the discount rate and the healt hcare cost trend rate. The table below presents the total OPEB liability of the Village calculated using the discount rate of 4.83% as well as what the Village ’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower ( 3.83%) or 1 percentage point higher (5.83%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (3.83%) (4.83%) (5.83%) Total OPEB liability $ 445,768 $ 422,254 $ 400,425 - 58 - Preliminary and Tentative For Discussion Purposes Only 146 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) - 58 - 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) g. Rate Sensitivity (Continued) The table below presents the total OPEB liability of the Village calculated using the healthcare rate of 8.30% decreasing to 5.00% as well as what the Village ’s total OPEB liability would be if it were calculated using a healthcare rate that is 1 percentage point lower ( 7.30% decreasing to 4.00%) or 1 percentage point higher (9.30% decreasing to 6.00%) than the current rate: 1% Decrease Current Healthcare Rate 1% Increase (7.30% to 4.00%) (8.30% to 5.00%) (9.30% to 6.00%) Total OPEB liability $ 391,737 $ 422,254 $ 456,502 h. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 20 25, the Village recognized OPEB expense of $13,273. Under GASB Statement No. 75, plans that qualify for the Alternative Measurement Method, changes to the OPEB liability are not permitted to be included in deferred outflows of resources or deferred inflows of resources related to OPEB. These changes will be immediately recognized through OPEB expense. - 59 - Preliminary and Tentative For Discussion Purposes Only 147 REQUIRED SUPPLEMENTARY INFORMATION Preliminary and Tentative For Discussion Purposes Only 148 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Property taxes 3,501,749$ 3,536,236$ 3,337,742$ Other taxes 914,764 1,046,822 1,311,069 Licenses, permits and fees 585,990 826,990 858,164 Fines and forfeitures 6,750 16,750 22,666 Charges for services 456,781 466,571 586,526 Intergovernmental - - 12,550 Investment income 125,000 260,000 325,781 Miscellaneous 52,066 69,128 60,390 Total revenues 5,643,100 6,222,497 6,514,888 EXPENDITURES Current General government 1,171,851 1,106,817 937,911 Public works 249,870 249,870 248,724 Public safety 3,200,515 3,127,134 3,003,102 Highways and streets 464,198 445,075 421,720 Culture and recreation 61,120 51,270 47,717 Capital outlay 32,825 32,825 37,018 Total expenditures 5,180,379 5,012,991 4,696,192 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 462,721 1,209,506 1,818,696 OTHER FINANCING SOURCES (USES) Transfer (out) (350,000) (2,250,000) (2,250,000) Sale of capital assets - - 269 Total other financing sources (uses) (350,000) (2,250,000) (2,249,731) NET CHANGE IN FUND BALANCE 112,721$ (1,040,494)$ (431,035) FUND BALANCE, JANUARY 1 6,277,623 FUND BALANCE, DECEMBER 31 5,846,588$ (See independent auditor's report.) - 60 - Preliminary and Tentative For Discussion Purposes Only 149 FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Actuarially determined contribution 130,995$ 106,021$ 105,802$ 73,875$ 83,365$ 79,813$ 54,531$ 11,947$ 15,207$ 6,165$ Contributions in relation to the actuarially determined contribution 130,995 106,021 105,802 73,875 83,365 79,813 54,531 11,947 15,207 6,165 CONTRIBUTION DEFICIENCY (Excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Additional contributions -$ 100,000$ -$ 50,000$ 50,000$ -$ 25,000$ 24,999$ 25,000$ -$ Covered payroll 960,374$ 817,438$ 815,749$ 805,616$ 735,132$ 745,910$ 759,468$ 791,211$ 756,547$ 833,201$ Contributions as a percentage of covered payroll 13.64% 25.20% 12.97% 15.38% 18.14% 10.70% 10.47% 4.67% 5.31% 0.74% Notes to Required Supplementary Information The information presented was determined as part of the actuarial valuations as of January 1 of the prior calendar year. Additional information as of the latest actuarial valuation presented is as follows: the actuarial cost method was entry-age normal; the amortization method was level percentage of pay, closed and the amortization period was 18 years; the asset valuation method was five-year smoothed fair value; and the significant actuarial assumptions were an investment rate of return of 7.25% annually, projected salary increases assumption of 2.75% to 13.75%, compounded annually and postretirement benefit increases of 2.75% compounded annually. VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND Last Ten Fiscal Years (See independent auditor's report.) - 61 - Preliminary and Tentative For Discussion Purposes Only 150 MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL PENSION LIABILITY Service cost 106,764$ 97,329$ 86,244$ 89,780$ 81,024$ 70,966$ 69,097$ 68,916$ 69,648$ 67,064$ Interest 546,105 561,036 553,396 557,178 576,844 597,599 607,980 625,075 619,282 628,578 Changes in benefit terms - - - - - - - - - - Differences between expected and actual experience 26,778 (32,536) (52,747) 138,367 211,898 48,585 197,316 (83,340) 115,992 397,959 Changes of assumptions (24,894) (254,726) 193,520 - (37,241) - - (14,495) - - Benefit payments, including refunds of member contributions (490,052) (470,337) (464,536) (486,613) (532,761) (549,677) (596,390) (680,641) (672,205) (678,605) Net change in total pension liability 164,701 (99,234) 315,877 298,712 299,764 167,473 278,003 (84,485) 132,717 414,996 Total pension liability - beginning 7,502,286 7,666,987 7,567,753 7,883,630 8,182,342 8,482,106 8,649,579 8,927,582 8,843,097 8,975,814 TOTAL PENSION LIABILITY - ENDING 7,666,987$ 7,567,753$ 7,883,630$ 8,182,342$ 8,482,106$ 8,649,579$ 8,927,582$ 8,843,097$ 8,975,814$ 9,390,810$ PLAN FIDUCIARY NET POSITION Contributions - employer 130,995$ 206,021$ 105,802$ 123,876$ 133,365$ 79,813$ 79,531$ 36,946$ 15,207$ 6,165$ Contributions - member 43,217 36,785 36,709 36,253 64,257 33,566 34,176 35,604 34,045 37,494 Net investment income 440,195 1,241,516 (461,808) 1,355,909 1,190,774 1,583,317 (1,367,250) 958,992 928,668 1,508,136 Benefit payments, including refunds of member contributions (490,052) (470,337) (464,536) (486,613) (532,761) (549,677) (596,390) (680,641) (672,205) (678,605) Administrative expense 128,981 (129,515) 181,404 92,813 143,040 50,338 101,077 249,788 (58,143) 279,124 Net change in plan fiduciary net position 253,336 884,470 (602,429) 1,122,238 998,675 1,197,357 (1,748,856) 600,689 247,572 1,152,314 Plan fiduciary net position - beginning 6,485,789 6,739,125 7,623,595 7,021,166 8,143,404 9,142,079 10,339,436 8,590,580 9,191,269 9,438,841 PLAN FIDUCIARY NET POSITION - ENDING 6,739,125$ 7,623,595$ 7,021,166$ 8,143,404$ 9,142,079$ 10,339,436$ 8,590,580$ 9,191,269$ 9,438,841$ 10,591,155$ EMPLOYER'S NET PENSION LIABILITY (ASSET) 927,862$ (55,842)$ 862,464$ 38,938$ (659,973)$ (1,689,857)$ 337,002$ (348,172)$ (463,027)$ (1,200,345)$ VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS ILLINOIS MUNICIPAL RETIREMENT FUND Last Ten Fiscal Years - 62 - Preliminary and Tentative For Discussion Purposes Only 151 MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Plan fiduciary net position as a percentage of total pension liability (asset) 87.90% 100.74% 89.06% 99.52% 107.78% 119.54% 96.23% 103.94% 105.16% 112.78% Covered payroll 960,374$ 817,438$ 815,749$ 805,616$ 735,132$ 745,910$ 759,468$ 791,211$ 756,547$ 833,201$ Employer's net pension liability (asset) as a percentage of covered payroll 96.61% (6.83%) 105.73% 4.83% (89.78%) (226.55%) 44.37% (44.00%) (61.20%) (144.06%) During 2018, there were changes in assumptions related to the discount rate. During 2017, there were changes in assumptions related to inflation and salary increases. During 2016, the discount rate assumption was changed from 7.49% to 7.50%. During 2020, there were changes in assumptions with respect to change in inflation, salary increases and mortality tables used. During 2023, there were changes in assumptions with respect to mortality tables used. (See independent auditor's report.) - 63 - Preliminary and Tentative For Discussion Purposes Only 152 FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Actuarially determined contribution 623,421$ 701,151$ 675,667$ 694,335$ 704,783$ 721,270$ 735,440$ 771,431$ 759,873$ 770,084$ Contribution in relation to the actuarially determined contribution 705,980 940,230 802,000 816,085 749,000 843,836 820,872 839,869 909,909 721,101 CONTRIBUTION DEFICIENCY (Excess) (82,559)$ (239,079)$ (126,333)$ (121,750)$ (44,217)$ (122,566)$ (85,432)$ (68,438)$ (150,036)$ 48,983$ Covered payroll 818,112$ 753,126$ 672,366$ 688,000$ 702,416$ 736,478$ 711,917$ 582,432$ 539,233$ 431,847$ Contributions as a percentage of covered payroll 86.29% 124.84% 119.28% 118.62% 106.63% 114.58% 115.30% 144.20% 168.74% 166.98% The information presented was determined as part of the actuarial valuations as of December 31, 2025. Additional information as of the latest actuarial valuation presented is as follows: the actuarial cost method was entry-age normal; the amortization method was level percent of pay, closed and the amortization period was 15 years; the asset valuation method was five-year smoothed fair value; and the significant actuarial assumptions were an investment rate of return at 6.75% (6.00% prior to 2023 and 7.00% prior to 2016) annually, projected salary increases assumption of 3.50% to 11.00%, varying by service, including inflation, compounded annually and postretirement benefit increases of 3.00% compounded annually (1.25% for those hired on or after January 1, 2011). VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND Last Ten Fiscal Years (See independent auditor's report.) - 64 - Preliminary and Tentative For Discussion Purposes Only 153 MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL PENSION LIABILITY Service cost 281,164$ 292,789$ 245,832$ 237,371$ 241,963$ 245,539$ 257,265$ 222,899$ 163,484$ 131,678$ Interest 905,465 906,432 938,554 957,815 986,050 1,014,772 1,048,152 1,093,361 1,213,370 1,242,313 Changes of benefit terms - - - - - - - - - - Differences between expected and actual experience (165,716) 251,572 (383,605) 31,106 15,782 78,661 366,574 1,402,135 146,909 400,642 Changes of assumptions (328,672) (161,876) 253,991 - - - - (1,922,762) - - Benefit payments, including refunds of member contributions (661,739) (713,772) (699,470) (751,096) (769,470) (767,867) (820,888) (947,379) (1,018,725) (1,107,613) Net change in total pension liability 30,502 575,145 355,302 475,196 474,325 571,105 851,103 (151,746) 505,038 667,020 Total pension liability - beginning 15,140,797 15,171,299 15,746,444 16,101,746 16,576,942 17,051,267 17,622,372 18,473,475 18,321,729 18,826,767 TOTAL PENSION LIABILITY - ENDING 15,171,299$ 15,746,444$ 16,101,746$ 16,576,942$ 17,051,267$ 17,622,372$ 18,473,475$ 18,321,729$ 18,826,767$ 19,493,787$ PLAN FIDUCIARY NET POSITION Contributions - employer 705,980$ 940,230$ 802,000$ 816,085$ 749,000$ 843,836$ 820,872$ 839,869$ 909,909$ 721,101$ Contributions - member 81,078 78,082 72,440 67,938 69,409 72,985 70,551 57,719 53,438 42,796 Contributions - other - - 420 - - - - - - - Net investment income 230,299 580,104 (196,911) 932,855 702,895 736,400 (961,274) 1,193,654 959,784 1,958,744 Benefit payments, including refunds (661,739) (713,772) (699,470) (751,096) (769,470) (767,867) (820,888) (947,379) (1,018,725) (1,107,613) of member contributions Administrative expense/other (9,702) (9,580) (11,826) (12,254) (12,406) (10,445) (14,063) (21,377) (25,923) (27,602) Net change in plan fiduciary net position 345,916 875,064 (33,347) 1,053,528 739,428 874,909 (904,802) 1,122,486 878,483 1,587,426 Plan fiduciary net position - beginning 6,334,369 6,680,285 7,555,349 7,522,002 8,575,530 9,314,958 10,189,867 9,285,065 10,407,551 11,286,034 PLAN FIDUCIARY NET POSITION - ENDING 6,680,285$ 7,555,349$ 7,522,002$ 8,575,530$ 9,314,958$ 10,189,867$ 9,285,065$ 10,407,551$ 11,286,034$ 12,873,460$ EMPLOYER'S NET PENSION LIABILITY 8,491,014$ 8,191,095$ 8,579,744$ 8,001,412$ 7,736,309$ 7,432,505$ 9,188,410$ 7,914,178$ 7,540,733$ 6,620,327$ Last Ten Fiscal Years POLICE PENSION FUND VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS - 65 - Preliminary and Tentative For Discussion Purposes Only 154 MEASUREMENT DATE DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Plan fiduciary net position as a percentage of the total pension liability 44.03% 47.98% 46.72% 51.73% 54.63% 57.82% 50.26% 56.80% 59.95% 66.04% Covered payroll 818,112$ 753,126$ 672,366$ 688,000$ 702,416$ 736,478$ 711,917$ 582,432$ 539,233$ 431,847$ Employer's net pension liability as a percentage of covered payroll 1,037.88% 1,087.61% 1,276.05% 1,163.00% 1,101.39% 1,009.20% 1,290.66% 1,358.82% 1,398.42% 1,533.03% In 2023, there were changes in assumptions related to the discount rate. (See independent auditor's report.) - 66 - Preliminary and Tentative For Discussion Purposes Only 155 FISCAL YEAR ENDED DECEMBER 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual money-weighted rate of return, net of investment expense 4.13% 9.20% (2.30%) 12.82% 8.97% 8.10% (10.38%) 13.70% 9.59% 17.79% VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND Last Ten Fiscal Years (See independent auditor's report.) - 67 - Preliminary and Tentative For Discussion Purposes Only 156 MEASUREMENT DATE DECEMBER 31, 2018 2019 2020 2021 2022 2023 2024 2025 TOTAL OPEB LIABILITY Service cost 6,240$ 5,913$ 7,463$ 9,609$ 9,941$ 16,624$ 18,751$ 13,177$ Interest 11,489 12,944 9,532 9,085 8,624 24,571 16,473 17,570 Changes in benefit terms - - - - - - - - Changes of assumptions (15,194) 34,343 33,145 (10,692) (131,712) 7,541 4,176 (17,474) Differences between expected and actual experience - - 50,097 - 383,117 (164,825) (72,190) - Benefit payments, including refunds of member contributions (20,565) (20,401) (21,856) (17,224) (18,548) (37,712) (40,507) (43,288) Net change in total OPEB liability (18,030) 32,799 78,381 (9,222) 251,422 (153,801) (73,297) (30,015) Total OPEB liability - beginning 344,017 325,987 358,786 437,167 427,945 679,367 525,566 452,269 TOTAL OPEB LIABILITY - ENDING 325,987$ 358,786$ 437,167$ 427,945$ 679,367$ 525,566$ 452,269$ 422,254$ Covered-employee payroll 1,578,466$ 1,682,638$ 1,509,914$ 1,561,296$ 1,592,687$ 1,732,603$ 1,879,066$ 1,320,172$ Employer's total OPEB liability as a percentage of covered-employee payroll 20.65% 21.32% 28.95% 27.41% 42.66% 30.33% 24.07% 31.98% During 2020, there were changes in assumptions with respect to the change in discount rate from 2.74% to 2.12%. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. VILLAGE OF KENILWORTH, ILLINOIS During 2024, there were changes in assumptions with respect to the mortality, retirement, termination and disability rates. There was also a change in discount rate from 3.26% to 4.08%. Last Eight Fiscal Years OTHER POSTEMPLOYMENT BENEFIT PLAN TOTAL OPEB LIABILITY AND RELATED RATIOS SCHEDULE OF CHANGES IN THE EMPLOYER'S During 2025, there were changes in assumptions with respect to a change in discount rate from 4.08% to 4.83%. During 2023, there were changes in assumptions with respect to a change in discount rate from 3.72% to 3.26%. During 2022, there were changes in assumptions with respect to the mortality rates, healthcare trend rates and a change in the discount rate from 2.06% to 3.72%. During 2021, there were changes in assumptions with respect to the mortality, retirement, termination and disability rates. There was also a change in discount rate from 2.12% to 2.06%. Ultimately, this schedule should present information for the last ten years. However, until ten years of information can be compiled, information will be presented for as many years as is available. (See independent auditor's report.) - 68 - Preliminary and Tentative For Discussion Purposes Only 157 - 56 - VILLAGE OF KENILWORTH, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2025 BUDGETS The Budget Ordinance is prepared in tentative form by the Village Manager, reviewed and approved by the Village Board of Trustees, and is made available for public inspection at least ten days prior to final board action. A public hearing is held on the tentative Budget Ordinance to obtain taxpayer comments. Prior to January 1, the Budget Ordinance is legally enacted through the passage of a budget ordinance. All actual expenditures contained herein have been compared to the annual operating Budget. The Board of Trustees may: By two -thirds vote transfer, within any department, amounts budgeted for an object or purpose to another object or purpose. No object or purpose can be reduced below an amount sufficient to provide for all obligations incurred, or to be incurred, against the budgeted amount. Adopt a supplemental budget ordinance in an amount not to exceed any additional revenue available, including unappropriated fund balances or amount estimated to be received after adoption of the annual budget ordinance. Management cannot amend the Budget Ordinance. However, expenditures may exceed budgets at the subject level. Expenditures that exceed individual budgets at the object level must be approved by the Board of Trustees, as outlined above. Expenditures may not legally exceed the budget at the fund level, the Village’s legal level of budgetary control. The operating budget is the management control for spending. The manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund are done through approval of the Village Board of Trustees and are supported by budget amendments as needed. The Village does not use the encumbrance method of accounting. Budgetary funds are controlled by an integrated budgetary accounting system, in accordance with various legal requirements which govern the Village. Operating budgets are adopted on a modified accrual basis of accounting for all governmental funds and proprietary funds and on an accrual basis for fiduciary funds. Budgets have been adopted for the General, Debt Service, Capital Projects, Special Revenue, Waterworks System and Police Pension Funds. All budgets are prepared based on the annual fiscal year of the Village and lapse at year end. Budget amounts are as originally adopted and as amended by the Village Board of Trustees. The financial schedules report management’s operating budget in the columns titled original budget and final budget for the General, Debt Service, Capital Projects, 2023 Capital Infrastructure Improvement, 2024A Bond/Lake Front Projects, Sewer Service, Motor Fuel Tax, Green Bay Road Tax Increment Financing (TIF) Fund, Waterworks System and Police Pension Funds. - 69 - Preliminary and Tentative For Discussion Purposes Only 158 VILLAGE OF KENILWORTH, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (Continued) - 56 - BUDGETS (Continued) The following funds had expenditures greater than the budget for the year ended December 31, 2025: Fund Actual Expenditures Final Budget Green Bay Road TIF $ 75,116 $ 62,800 - 70 - Preliminary and Tentative For Discussion Purposes Only 159 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Preliminary and Tentative For Discussion Purposes Only 160 MAJOR GOVERNMENTAL FUNDS Preliminary and Tentative For Discussion Purposes Only 161 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual PROPERTY TAXES 3,501,749$ 3,536,236$ 3,337,742$ OTHER TAXES Replacement taxes 52,382 52,382 50,095 State sales taxes 140,000 300,000 547,845 State income taxes 446,284 430,000 453,385 Local use tax 65,658 35,000 22,553 Utility tax 188,000 207,000 211,507 Miscellaneous tax 22,440 22,440 25,684 Total other taxes 914,764 1,046,822 1,311,069 INTERGOVERNMENTAL Other grants - - 12,550 Total intergovernmental - - 12,550 CHARGES FOR SERVICES Ambulance user fees 20,000 20,000 2,315 Beach fees 50,000 59,790 60,090 Fire and burglar alarm fees 6,000 6,000 4,300 Yard waste stickers 10,000 10,000 10,250 Special duty detail 3,000 3,000 1,050 Waste collections 96,000 96,000 96,046 Antenna lease fees 187,601 187,601 318,012 Surcharge 83,000 83,000 90,590 Miscellaneous fees 1,180 1,180 3,873 Total charges for services 456,781 466,571 586,526 LICENSES AND PERMITS Licenses Vehicle license 80,000 80,000 76,576 Animal license 1,500 1,500 987 Liquor license 4,250 4,250 4,750 Total licenses 85,750 85,750 82,313 (This schedule is continued on the following page.) - 71 - Preliminary and Tentative For Discussion Purposes Only 162 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual LICENSES AND PERMITS (Continued) Permits Building 400,000$ 650,000$ 665,287$ Parking 11,500 11,500 17,332 Tree permits 300 300 - Filing fees 4,440 4,440 9,728 Zoning review 17,000 8,000 8,550 Plan review 67,000 67,000 74,954 Total permits 500,240 741,240 775,851 Total licenses and permits 585,990 826,990 858,164 FINES AND FORFEITURES Circuit court fees 750 750 997 Village ordinance fines 6,000 16,000 21,669 Total fines and forfeitures 6,750 16,750 22,666 INVESTMENT INCOME 125,000 260,000 325,781 MISCELLANEOUS Cable television franchise fees 49,000 49,000 42,710 Other income 3,066 20,128 17,680 Total miscellaneous 52,066 69,128 60,390 TOTAL REVENUES 5,643,100$ 6,222,497$ 6,514,888$ (See independent auditor's report.) - 72 - Preliminary and Tentative For Discussion Purposes Only 163 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual GENERAL GOVERNMENT Administrative Personnel Salaries Regular 244,663$ 244,663$ 249,646$ Merit - vacation buy back 15,000 15,000 - Employee benefits Medical 9,068 9,068 14,090 Dental 496 496 609 Life 539 539 529 Other benefits 24,185 24,185 20,623 Total personnel 293,951 293,951 285,497 Contractual services Auditing 22,200 22,200 25,250 J.U.L.I.E fees 543 543 543 Plan review and inspections 131,096 131,096 133,453 Printing and publishing 10,750 10,750 5,678 Telephone 2,366 2,366 3,184 Cell phone 600 600 558 Miscellaneous 11,373 11,373 12,675 Professional fees 434,381 377,347 369,347 Postage 1,440 1,440 2,301 Dues, memberships and subscriptions 14,041 14,041 13,724 Total contractual services 628,790 571,756 566,713 Commodities Office supplies 2,120 2,120 732 Other supplies 800 800 721 Total commodities 2,920 2,920 1,453 Other expenditures Recruitment and training 1,925 1,925 440 Miscellaneous 6,365 6,365 4,709 Auto allowance - - 3,200 Total other expenditures 8,290 8,290 8,349 Total administrative 933,951 876,917 862,012 (This schedule is continued on the following pages.) - 73 - Preliminary and Tentative For Discussion Purposes Only 164 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual GENERAL GOVERNMENT (Continued) Support Services Insurance - Liability and workers' compensation 133,000$ 133,000$ 113,616$ Insurance - change in excess surplus reserve - - (128,632) Village attorney 97,500 89,500 85,216 Village prosecutor 4,200 4,200 2,958 Maintenance of office equipment 200 200 - Internet service 3,000 3,000 2,741 Total support services 237,900 229,900 75,899 Total general government 1,171,851 1,106,817 937,911 PUBLIC WORKS Building and Grounds Personnel Salaries Maintenance 16,134 16,134 16,362 Overtime 1,200 1,200 630 Employee benefits Medical 4,653 4,653 3,979 Dental 269 269 215 Other benefits 1,661 1,661 1,366 Total personnel 23,917 23,917 22,552 Contractual services Outside maintenance 29,456 29,456 27,248 Commodities Building repairs - Village Hall 8,250 8,250 9,545 Building repairs - Public Works - - 600 Janitorial supplies 1,700 1,700 2,051 Maintenance and other supplies 2,000 2,000 1,995 Heating, electric and water utilities - - 2,548 Total commodities 11,950 11,950 16,739 Total building and grounds 65,323 65,323 66,539 Waste Removal Personnel Salaries Regular 32,733 32,733 32,975 Merit - vacation buy back 2,000 2,000 - (This schedule is continued on the following pages.) - 74 - Preliminary and Tentative For Discussion Purposes Only 165 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual PUBLIC WORKS (Continued) Waste Removal (Continued) Personnel (Continued) Employee benefits Medical 2,015$ 2,015$ 4,074$ Dental 111 111 19 Other benefits 2,688 2,688 2,625 Total personnel 39,547 39,547 39,693 Contractual services Professional service - finance 2,303 2,303 2,426 Waste dumping 45,877 45,877 44,156 Leaf pickup 12,500 12,500 12,500 Total contractual services 60,680 60,680 59,082 Total waste removal 100,227 100,227 98,775 Forestry Contractual services Professional services 5,600 5,600 8,436 Dues, memberships and subscriptions 2,500 2,500 2,557 Tree planting program 17,620 17,620 10,525 Tree removal and trimming 58,000 58,000 60,532 Total contractual services 83,720 83,720 82,050 Commodities Maintenance and construction supplies 600 600 1,360 Total forestry 84,320 84,320 83,410 Total public works 249,870 249,870 248,724 PUBLIC SAFETY Police Department Personnel Salaries Regular 1,034,347 1,034,347 964,372 Police pension contributions 759,873 759,873 701,101 Transportation to police - extra 20,000 20,000 20,000 Overtime 50,000 50,000 53,168 Merit - vacation buy back - - 1,964 Part-time 150,420 68,000 67,782 (This schedule is continued on the following pages.) - 75 - Preliminary and Tentative For Discussion Purposes Only 166 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual PUBLIC SAFETY (Continued) Police Department (Continued) Personnel (Continued) Employee benefits Medical 223,781$ 223,781$ 228,622$ Dental 11,720 11,720 12,816 Life 1,342 1,342 1,742 Other benefits 67,155 84,976 88,573 Total personnel 2,318,638 2,254,039 2,140,140 Contractual services Maintenance - office equipment 50 50 - Printing and publishing 600 600 865 Telephone 2,100 2,100 2,560 Cell phone 2,800 2,800 4,282 Outside maintenance service 1,600 1,600 465 Radio system air time 7,488 7,488 3,840 Postage 125 125 - Dues, memberships and subscriptions 40,716 40,716 44,962 Municipal partnerships 24,163 24,163 23,252 Professional services - dispatch 234,959 226,177 226,177 Repair and maintenance - computer equipment 200 200 647 Repair and maintenance - vehicles/equipment 10,540 10,540 9,610 Total contractual services 325,341 316,559 316,660 Commodities Office supplies 1,400 1,400 1,176 Other supplies 5,200 5,200 3,982 Uniforms 12,000 12,000 10,318 Total commodities 18,600 18,600 15,476 Other expenditures Fuel 12,500 12,500 10,345 Recruitment and training 19,725 19,725 21,156 Miscellaneous 1,000 1,000 854 Auto allowance 4,800 4,800 3,271 Community service 2,750 2,750 2,474 Total other expenditures 40,775 40,775 38,100 Total police department 2,703,354 2,629,973 2,510,376 (This schedule is continued on the following pages.) - 76 - Preliminary and Tentative For Discussion Purposes Only 167 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual PUBLIC SAFETY (Continued) Fire Department Personnel Salaries Regular 12,770$ 12,770$ 10,822$ Employee benefits Medical 3,085 3,085 873 Dental 162 162 - Other benefits 186 186 145 Total personnel 16,203 16,203 11,840 Contractual services Miscellaneous services 1,800 1,800 1,728 Fire protection 479,158 479,158 479,158 Total contractual services 480,958 480,958 480,886 Total fire department 497,161 497,161 492,726 Total public safety 3,200,515 3,127,134 3,003,102 HIGHWAYS AND STREETS Street Department Personnel Salaries Regular 217,820 217,820 220,350 Overtime 7,000 7,000 6,548 Merit - vacation buy back 1,300 1,300 - Employee benefits Medical 51,411 37,538 45,471 Dental 2,791 2,791 2,454 Life 410 410 415 Other benefits 22,013 22,013 18,572 Total personnel 302,745 288,872 293,810 Contractual services Telephone 960 960 807 Cell phone 2,220 2,220 2,073 Outside maintenance 34,000 34,000 29,269 Repair and maintenance - vehicles/equipment 6,000 11,000 13,470 Signs - traffic and streets 1,000 1,000 184 Equipment rental 1,000 1,000 2,313 Dues, memberships and subscriptions 7,830 7,830 7,824 Professional services - finance 2,303 2,303 2,426 Total contractual services 55,313 60,313 58,366 (This schedule is continued on the following pages.) - 77 - Preliminary and Tentative For Discussion Purposes Only 168 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual HIGHWAYS AND STREETS (Continued) Street Department (Continued) Commodities Office supplies 200$ 200$ 27$ Other supplies 1,500 1,500 1,680 Maintenance supplies 12,000 12,000 12,991 Snow removal supplies 30,000 19,750 15,840 Uniforms 2,400 2,400 2,770 Safety equipment 500 500 487 Total commodities 46,600 36,350 33,795 Other expenditures Fuel 8,500 8,500 5,693 Recruitment and training 500 500 99 Miscellaneous 500 500 201 Total other expenditures 9,500 9,500 5,993 Total street department 414,158 395,035 391,964 Street Lighting Personnel Salaries Regular 16,134 16,134 16,363 Overtime 500 500 630 Employee benefits Medical 4,653 4,653 3,981 Dental 269 269 215 Other benefits 1,613 1,613 1,367 Total personnel 23,169 23,169 22,556 Contractual services Repairs and maintenance 8,696 8,696 2,735 Equipment rental 3,500 3,500 (5,700) Total contractual services 12,196 12,196 (2,965) Commodities Other supplies 2,300 2,300 2,344 Heating, electric and water utilities 12,000 12,000 7,488 Total commodities 14,300 14,300 9,832 (This schedule is continued on the following pages.) - 78 - Preliminary and Tentative For Discussion Purposes Only 169 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual HIGHWAYS AND STREETS (Continued) Street Lighting (Continued) Other expenditures Fuel 375$ 375$ 333$ Total street lighting 50,040 50,040 29,756 Total highways and streets 464,198 445,075 421,720 CULTURE AND RECREATION Beach Personnel Salaries Part-time 45,000 35,150 35,150 Employee benefits Other benefits 4,000 4,000 2,918 Total personnel 49,000 39,150 38,068 Contractual services Printing and publishing 800 800 972 Telephone 1,300 1,300 674 Miscellaneous 600 600 603 Dues, memberships and subscriptions 2,500 2,500 2,407 Laboratory services 1,200 1,200 832 Total contractual services 6,400 6,400 5,488 Commodities Other supplies 2,850 2,850 2,686 Other expenditures Recruitment and training 2,870 2,870 1,475 Total culture and recreation 61,120 51,270 47,717 CAPITAL OUTLAY General Government Machinery & equipment - - 397 Software 15,775 15,775 18,812 Total general government 15,775 15,775 19,209 (This schedule is continued on the following page.) - 79 - Preliminary and Tentative For Discussion Purposes Only 170 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual CAPITAL OUTLAY (Continued) Public Safety Police Department Office furniture 300$ 300$ -$ Machinery and equipment 8,400 8,400 8,920 Software 3,500 3,500 5,033 Computer equipment 1,250 1,250 - Total public safety 13,450 13,450 13,953 Highways and Streets Street Department Machinery and equipment 500 500 144 Software 2,200 2,200 2,212 Total highways and streets 2,700 2,700 2,356 Culture and Recreation Beach Facilities improvements 700 700 1,384 Machinery and equipment 200 200 116 Total culture and recreation 900 900 1,500 Total capital outlay 32,825 32,825 37,018 TOTAL EXPENDITURES 5,180,379$ 5,012,991$ 4,696,192$ (See independent auditor's report.) - 80 - Preliminary and Tentative For Discussion Purposes Only 171 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Taxes Property 1,789,282$ 1,789,282$ 1,698,097$ Investment income 30,000 20,000 24,036 Total revenues 1,819,282 1,809,282 1,722,133 EXPENDITURES Debt service Principal retirement 1,765,000 1,785,000 1,765,000 Interest and fiscal charges 626,182 626,182 640,304 Total expenditures 2,391,182 2,411,182 2,405,304 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (571,900) (601,900) (683,171) OTHER FINANCING SOURCES (USES) Bonds issued 600,000 600,000 507,700 Bond premium 20,000 20,000 - Total other financing sources (uses) 620,000 620,000 507,700 NET CHANGE IN FUND BALANCE 48,100$ 18,100$ (175,471) FUND BALANCE, JANUARY 1 69,635 FUND BALANCE (DEFICIT), DECEMBER 31 (105,836)$ (See independent auditor's report.) - 81 - Preliminary and Tentative For Discussion Purposes Only 172 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL PROJECTS FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Investment income 100,000$ 200,000$ 188,664$ Total revenues 100,000 200,000 188,664 EXPENDITURES Capital outlay 165,000 159,000 140,244 Total expenditures 165,000 159,000 140,244 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (65,000) 41,000 48,420 OTHER FINANCING SOURCES (USES) Bonds issued 390,000 390,000 462,300 Transfer (out) - (3,400,000) (3,400,000) Total other financing sources (uses) 390,000 (3,010,000) (2,937,700) NET CHANGE IN FUND BALANCE 325,000$ (2,969,000)$ (2,889,280) FUND BALANCE, JANUARY 1 5,571,591 FUND BALANCE, DECEMBER 31 2,682,311$ (See independent auditor's report.) - 82 - Preliminary and Tentative For Discussion Purposes Only 173 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 2024A BOND/LAKE FRONT PROJECTS FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Investment income 40,000$ 50,000$ 117,245$ Miscellaneous - - 789,956 Total revenues 40,000 50,000 907,201 EXPENDITURES General government Administrative 7,300 7,300 1,347 Capital outlay 4,181,000 5,537,625 2,884,812 Total expenditures 4,188,300 5,544,925 2,886,159 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (4,148,300) (5,494,925) (1,978,958) OTHER FINANCING SOURCES (USES) Transfer in 350,000 6,824,712 6,824,712 Total other financing sources (uses) 350,000 6,824,712 6,824,712 NET CHANGE IN FUND BALANCE (3,798,300)$ 1,329,787$ 4,845,754 FUND BALANCE, JANUARY 1 1,714,977 FUND BALANCE, DECEMBER 31 6,560,731$ (See independent auditor's report.) - 83 - Preliminary and Tentative For Discussion Purposes Only 174 NONMAJOR GOVERNMENTAL FUNDS Preliminary and Tentative For Discussion Purposes Only 175 Capital Projects Sewer Motor Green Bay 2023 Capital Service Fuel Tax Road TIF Infrastructure Total Cash and investments 534,496$ 672,310$ 1,886,342$ -$ 3,093,148$ Receivables (net, where applicable, of allowances for uncollectibles) Property taxes - - 173,802 - 173,802 Accounts 28,426 10,178 - - 38,604 TOTAL ASSETS 562,922$ 682,488$ 2,060,144$ -$ 3,305,554$ LIABILITIES Accounts payable 4,208$ 45,437$ 3,771$ -$ 53,416$ Accrued payroll 1,217 - - - 1,217 Total liabilities 5,425 45,437 3,771 - 54,633 DEFERRED INFLOWS OF RESOURCES None - - - - - Total deferred inflows of resources - - - - - Total liabilities and deferred inflows of resources 5,425 45,437 3,771 - 54,633 FUND BALANCES Restricted for capital improvements - - - - - Restricted for highways and streets - 637,051 - - 637,051 Restricted for economic development - - 2,056,373 - 2,056,373 Committed for sewer service 557,497 - - - 557,497 Total fund balances 557,497 637,051 2,056,373 - 3,250,921 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 562,922$ 682,488$ 2,060,144$ -$ 3,305,554$ COMBINING BALANCE SHEET VILLAGE OF KENILWORTH, ILLINOIS LIABILITIES, DEFERRED INFLOWS ASSETS OF RESOURCES AND FUND BALANCES December 31, 2025 NONMAJOR GOVERNMENTAL FUNDS Special Revenue (See independent auditor's report.) - 84 - Preliminary and Tentative For Discussion Purposes Only 176 Capital Projects Sewer Motor Green Bay 2023 Capital Service Fuel Tax Road TIF Infrastructure Total REVENUES Taxes -$ -$ 346,538$ -$ 346,538$ Charges for services 120,471 - - - 120,471 Intergovernmental - 114,772 - - 114,772 Investment income 20,367 37,246 73,813 33,801 165,227 Total revenues 140,838 152,018 420,351 33,801 747,008 EXPENDITURES Current Public works 76,572 - - - 76,572 Highways and streets - 275,079 - - 275,079 Economic development - - 61,445 - 61,445 Capital outlay 15,257 - 13,671 - 28,928 Total expenditures 91,829 275,079 75,116 - 442,024 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 49,009 (123,061) 345,235 33,801 304,984 OTHER FINANCING SOURCES (USES) Transfer (out) - - - (1,174,712) (1,174,712) Total other financing sources (uses) - - - (1,174,712) (1,174,712) NET CHANGE IN FUND BALANCES 49,009 (123,061) 345,235 (1,140,911) (869,728) FUND BALANCES, JANUARY 1 508,488 760,112 1,711,138 1,140,911 4,120,649 FUND BALANCES, DECEMBER 31 557,497$ 637,051$ 2,056,373$ -$ 3,250,921$ Special Revenue VILLAGE OF KENILWORTH, ILLINOIS For the Year Ended December 31, 2025 NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (See independent auditor's report.) - 85 - Preliminary and Tentative For Discussion Purposes Only 177 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SEWER SERVICE FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Charges for services Sewer charges 101,000$ 114,033$ 120,471$ Investment income 18,000 18,000 20,367 Total revenues 119,000 132,033 140,838 EXPENDITURES Public works Personnel 58,867 58,867 57,618 Contractual services 2,500 2,500 2,407 Outside maintenance services 29,000 11,965 14,065 Repair and maintenance - vehicles/equipment 1,400 1,400 1,337 Maintenance and construction supplies 4,600 4,600 1,145 Capital outlay 17,375 17,375 15,257 Total expenditures 113,742 96,707 91,829 NET CHANGE IN FUND BALANCE 5,258$ 35,326$ 49,009 FUND BALANCE, JANUARY 1 508,488 FUND BALANCE, DECEMBER 31 557,497$ (See independent auditor's report.) - 86 - Preliminary and Tentative For Discussion Purposes Only 178 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MOTOR FUEL TAX FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Intergovernmental Motor fuel tax allotment 114,546$ 107,011$ 114,772$ Investment income 20,000 38,500 37,246 Total revenues 134,546 145,511 152,018 EXPENDITURES Highways and streets 460,000 229,642 275,079 Total expenditures 460,000 229,642 275,079 NET CHANGE IN FUND BALANCE (325,454)$ (84,131)$ (123,061) FUND BALANCE, JANUARY 1 760,112 FUND BALANCE, DECEMBER 31 637,051$ (See independent auditor's report.) - 87 - Preliminary and Tentative For Discussion Purposes Only 179 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GREEN BAY ROAD TAX INCREMENT FINANCING (TIF) FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Taxes Property 200,000$ 200,000$ 346,538$ Investment income 17,000 60,000 73,813 Total revenues 217,000 260,000 420,351 EXPENDITURES Economic development 178,300 32,800 61,445 Capital outlay 760,000 30,000 13,671 Total expenditures 938,300 62,800 75,116 NET CHANGE IN FUND BALANCE (721,300)$ 197,200$ 345,235 FUND BALANCE, JANUARY 1 1,711,138 FUND BALANCE, DECEMBER 31 2,056,373$ (See independent auditor's report.) - 88 - Preliminary and Tentative For Discussion Purposes Only 180 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 2023 CAPITAL INFRASTRUCTURE IMPROVEMENT FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual REVENUES Investment income 75,000$ 43,000$ 33,801$ Miscellaneous - (9,199) - Total revenues 75,000 33,801 33,801 EXPENDITURES None - - - Total expenditures - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 75,000 33,801 33,801 OTHER FINANCING SOURCES (USES) Transfer (out) - (1,174,712) (1,174,712) Total other financing sources (uses) - (1,174,712) (1,174,712) NET CHANGE IN FUND BALANCE 75,000$ (1,140,911)$ (1,140,911) FUND BALANCE, JANUARY 1 1,140,911 FUND BALANCE, DECEMBER 31 -$ (See independent auditor's report.) - 89 - Preliminary and Tentative For Discussion Purposes Only 181 ENTERPRISE FUND Preliminary and Tentative For Discussion Purposes Only 182 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATERWORKS SYSTEM FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual OPERATING REVENUES Charges for services 1,023,600$ 1,129,255$ 1,176,639$ Miscellaneous 4,025 4,025 4,522 Total operating revenues 1,027,625 1,133,280 1,181,161 OPERATING EXPENSES Operations Personnel 236,965 230,623 232,801 Contractual services 370,729 474,382 529,279 Commodities 24,956 24,956 23,423 Other expenses 5,700 5,700 2,614 Capital outlay 24,500 37,729 46,155 Total operating expenses excluding depreciation 662,850 773,390 834,272 OPERATING INCOME BEFORE DEPRECIATION 364,775 359,890 346,889 Depreciation - - 514,441 OPERATING INCOME (LOSS) 364,775 359,890 (167,552) NON-OPERATING REVENUES (EXPENSES) Investment income 20,000 29,800 34,379 Interest on debt (44,100) (44,100) (43,538) Total non-operating revenues (expenses) (24,100) (14,300) (9,159) CHANGE IN NET POSITION 340,675$ 345,590$ (176,711) NET POSITION, JANUARY 1 12,082,899 NET POSITION, DECEMBER 31 11,906,188$ (See independent auditor's report.) - 90 - Preliminary and Tentative For Discussion Purposes Only 183 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL WATERWORKS SYSTEM FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual OPERATING EXPENSES Personnel Salaries Regular 179,428$ 179,428$ 183,366$ Overtime 2,000 2,000 3,148 Merit - vacation buy back 6,000 6,000 - Employee benefits Medical 29,309 22,967 26,912 Dental 1,673 1,673 1,242 Life 228 228 114 Other benefits 18,327 18,327 15,135 Total personnel 236,965 230,623 229,917 Contractual services Printing and publishing 800 800 740 Telephone and internet 3,419 3,419 1,819 Outside maintenance 8,400 8,400 12,577 Equipment maintenance 500 500 - Laboratory services 1,874 1,874 2,915 Professional services 47,778 56,223 56,345 Postage - - 1,754 Dues, memberships and subscriptions 8,715 8,715 8,976 Miscellaneous services 543 543 543 Repairs and maintenance - vehicles/equipment 3,700 3,700 6,502 Repairs and maintenance - water mains 40,000 86,254 85,741 Purchase of potable water 255,000 303,954 351,367 Total contractual services 370,729 474,382 529,279 Commodities Maintenance supplies 7,250 7,250 8,082 Heating, electric and water utilities 17,706 17,706 15,341 Total commodities 24,956 24,956 23,423 (This schedule is continued on the following page.) - 91 - Preliminary and Tentative For Discussion Purposes Only 184 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL (Continued) WATERWORKS SYSTEM FUND For the Year Ended December 31, 2025 Original Final Budget Budget Actual OPERATING EXPENSES (Continued) Other expenses Fuel 4,200$ 4,200$ 2,084$ Recruitment and training 1,500 1,500 530 Total other expenses 5,700 5,700 2,614 Capital outlay 24,500 37,729 46,155 Total operating expenses 662,850 773,390 831,388 ADJUSTMENTS TO GAAP BASIS Depreciation - - 514,441 Pension expense (income) - - (17,153) OPEB expense - - 20,037 Total adjustments to GAAP basis - - 517,325 TOTAL OPERATING EXPENSES 662,850$ 773,390$ 1,348,713$ (See independent auditor's report.) - 92 - Preliminary and Tentative For Discussion Purposes Only 185 FIDUCIARY FUND Preliminary and Tentative For Discussion Purposes Only 186 Original and Final Budget Actual ADDITIONS Contributions Contributions - employer 759,873$ 721,101$ Contributions - employee 55,272 42,796 Total contributions 815,145 763,897 Investment income Net appreciation in fair value of investments 765,000 1,905,995 Interest earned on investments 75,000 63,008 Total investment income 840,000 1,969,003 Less investment expense (7,500) (10,259) Net investment income 832,500 1,958,744 Total additions 1,647,645 2,722,641 DEDUCTIONS Benefits 1,042,869 1,107,613 Administrative 23,950 27,602 Total deductions 1,066,819 1,135,215 NET INCREASE 580,826$ 1,587,426 NET POSITION RESTRICTED FOR PENSIONS January 1 11,286,034 December 31 12,873,460$ VILLAGE OF KENILWORTH, ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET POSITION - BUDGET AND ACTUAL For the Year Ended December 31, 2025 (See independent auditor's report.) - 93 - Preliminary and Tentative For Discussion Purposes Only 187 SUPPLEMENTAL INFORMATION Preliminary and Tentative For Discussion Purposes Only 188 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION (ALTERNATE REVENUE SOURCE) REFUNDING BONDS OF 2015A December 31, 2025 Date of Issue October 21, 2015 Date of Maturity December 1, 2030 Purpose Water Plant and Beach Improvements Authorized Issue $3,225,000 Denomination of Bonds $5,000 Interest Rates 3% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Bank of Chicago Fiscal Year Principal Interest Total June 1 Amount December 1 Amount 2026 235,000$ 37,350$ 272,350$ 2026 18,675$ 2026 18,675$ 2027 240,000 30,300 270,300 2027 15,150 2027 15,150 2028 250,000 23,100 273,100 2028 11,550 2028 11,550 2029 255,000 15,600 270,600 2029 7,800 2029 7,800 2030 265,000 7,950 272,950 2030 3,975 2030 3,975 1,245,000$ 114,300$ 1,359,300$ 57,150$ 57,150$ CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on (See independent auditor's report.) - 94 - Preliminary and Tentative For Discussion Purposes Only 189 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION (ALTERNATE REVENUE SOURCE) BONDS OF 2022 December 31, 2025 Date of Issue March 16, 2022 Date of Maturity December 1, 2037 Purpose Phase II Improvement Program Authorized Issue $7,125,000 Denomination of Bonds $5,000 Interest Rates 3% to 4% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Fiscal Year Principal Interest Total June 1 Amount December 1 Amount 2026 405,000$ 194,800$ 599,800$ 2026 97,400$ 2026 97,400$ 2027 420,000 178,600 598,600 2027 89,300 2027 89,300 2028 435,000 161,800 596,800 2028 80,900 2028 80,900 2029 455,000 144,400 599,400 2029 72,200 2029 72,200 2030 470,000 126,200 596,200 2030 63,100 2030 63,100 2031 490,000 107,400 597,400 2031 53,700 2031 53,700 2032 510,000 87,800 597,800 2032 43,900 2032 43,900 2033 525,000 72,500 597,500 2033 36,250 2033 36,250 2034 540,000 56,750 596,750 2034 28,375 2034 28,375 2035 560,000 40,550 600,550 2035 20,275 2035 20,275 2036 575,000 23,750 598,750 2036 11,875 2036 11,875 2037 200,000 6,500 206,500 2037 3,250 2037 3,250 5,585,000$ 1,201,050$ 6,786,050$ 600,525$ 600,525$ CURRENT AND FUTURE PRINCIPAL AND INTEREST REQUIREMENTS Requirements Interest Due on (See independent auditor's report.) - 95 - Preliminary and Tentative For Discussion Purposes Only 190 VILLAGE OF KENILWORTH, ILLINOIS SCHEDULE OF LONG-TERM DEBT REQUIREMENTS GENERAL OBLIGATION BONDS SERIES 2024A December 31, 2025 Date of Issue July 16, 2024 Date of Maturity December 1, 2036 Purpose Various Capital Projects Authorized Issue $7,465,000 Denomination of Bonds $5,000 Interest Rates 3% to 4% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Fiscal Year Principal Interest Total June 1 Amount December 1 Amount 2026 460,000$ 328,000$ 788,000$ 2026 164,000$ 2026 164,000$ 2027 485,000 305,000 790,000 2027 152,500 2027 152,500 2028 510,000 280,750 790,750 2028 140,375 2028 140,375 2029 535,000 255,250 790,250 2029 127,625 2029 127,625 2030 560,000 228,500 788,500 2030 114,250 2030 114,250 2031 590,000 200,500 790,500 2031 100,250 2031 100,250 2032 620,000 171,000 791,000 2032 85,500 2032 85,500 2033 650,000 140,000 790,000 2033 70,000 2033 70,000 2034 685,000 107,500 792,500 2034 53,750