Audit Committee Meeting — Agenda Packet

NOTICE OF MEETING VILLAGE OF FOX POINT AUDIT COMMITTEE MEETING SCHWEMER HALL - MUNICIPAL BLDG. 7200 N. SANTA MONICA BLVD. FOX POINT, WI 53217 Wednesday, August 5, 2026 5:00 PM AGENDA A. Roll Call B. Approval of Minutes a. Minutes 7/31/2025 C. New Business a. Discussion and Possible Action Re: FY 2025 Draft Village Audit D. Adjournment Upon reasonable notice, efforts will be made to accommodate the needs of disabled individuals through sign language interpreters or other auxiliary aids. For additional information or to request these services, contact the Village Clerk at 414-351-8900. It is possible that members of, and possibly a quorum of members of, other governmental bodies of the municipality may attend the above-stated meeting to gather information; no action will be taken by any governmental body at the above-stated meeting other than the governmental body specifically referred to above in this notice. Page 1 of 114 VILLAGE OF FOX POINT AUDIT COMMITTEE JULY 31, 2025 1 A meeting of the Fox Point Audit Committee was held in Schwemer Hall, 7200 N. Santa Monica Blvd., on Thursday, July 31, 2025 at 5:00 p.m. via in-person and Zoom telephonic and video conferencing. The Village Clerk Treasurer took roll call. Those present included: Christine Symchych, Chair Liz Aelion, Member Mark Freedman, Member Terry Rindt, Member Pedro Pierri, Member Also present were Acting Village Manager Chris Freedy, Assistant Village Manager Kevin Ausman, Village Financial Manager Mary Carthell, Deputy Finance Manager Kestra Jost, Village Clerk/Treasurer Sara Bruckman, and Wendi Unger of Baker Tilly Virchow Krause & Company. Notice of the meeting was provided to the North Shore Now and to all others as required by State open meetings laws and posted on the official bulletin board at 7200 N Santa Monica Boulevard, as well as the village website at www.villageoffoxpoint.com, as per 2015 Wisconsin Act 79 and as described in Village Ordinance Chapter 116-2, 116-2(C). Approval of the Minutes of the May 30, 2024 Audit Committee Meeting On motion by Chair Symchych, seconded by Member Freedman, and carried by roll call vote (5-0) the Committee approved the May 30, 2024 Audit Committee meeting minutes. Discussion and Possible Action Re: Fiscal Year 2024 Village Audit Draft Ms. Wendi Unger, partner Baker Tilly Virchow Krause was present for the Village audit presentation. Ms. Unger presented information related to the 2024 Village Audit, including the Financial Statement and the Communication to Those Charged with Governance and Management Report for the year ended, December 31, 2024. On motion of Chair Symchych, seconded by Member Rindt, and carried unanimously (5-0) the Committee accepts and recommends to the Village Board the Fiscal Year 2024 Village Audit in final format to be presented by Baker Tilly Partner, Wendi Unger at the Village Board meeting on Tuesday, August 12, 2025. Adjourn On motion by Chair Symchych, seconded by Member Freedman, and unanimously carried 5-0, the Audit Committee adjourned at 5:55 p.m. Respectfully submitted, Sara A. Bruckman, CMC/WCMC Village Clerk Treasurer Page 2 of 114 Reporting and insights from 2025 audit: Village of Fox Point December 31, 2025 DRAFT 06/30/2026 Page 3 of 114 THIS COMMUNICATION IS INTENDED SOLELY FOR THE INFORMATION AND USE OF THOSE CHARGED WITH GOVERNANCE, AND, IF APPROPRIATE, MANAGEMENT, AND IS NOT INTENDED TO BE AND SHOULD NOT BE USED BY ANYONE OTHER THAN THESE SPECIFIED PARTIES. BAKER TILLY ADVISORY GROUP, LP AND BAKER TILLY US, LLP, TRADING AS BAKER TILLY, ARE MEMBERS OF THE GLOBAL NETWORK OF BAKER TILLY INTERNATIONAL LTD., THE MEMBERS OF WHICH ARE SEPARATE AND INDEPENDENT LEGAL ENTITIES. BAKER TILLY US, LLP IS A LICENSED CPA FIRM THAT PROVIDES ASSURANCE SERVICES TO ITS CLIENTS. BAKER TILLY ADVISORY GROUP, LP AND ITS SUBSIDIARY ENTITIES PROVIDE TAX AND CONSULTING SERVICES TO THEIR CLIENTS AND ARE NOT LICENSED CPA FIRMS. NONATTEST SERVICES ARE PROVIDED BY BAKER TILLY ADVISORY GROUP, LP. Executive summary July XX, 2026 To the Village Board Village of Fox Point We have completed our audit of the financial statements of the Village of Fox Point (the Village) for the year ended December 31, 2025, and have issued our report thereon dated July XX, 2026. This letter presents communications required by our professional standards. Your audit should provide you with confidence in your financial statements. The audit was performed based on information obtained from meetings with management, data from your systems, knowledge of your Village’s operating environment and our risk assessment procedures. We strive to provide you clear, concise communication throughout the audit process and of the final results of our audit. Additionally, we have included information on key risk areas the Village of Fox Point should be aware of in your strategic planning. We are available to discuss these risks as they relate to your organization's financial stability and future planning. If you have questions at any point, please connect with us: • Wendi Unger, CPA, Principal: wendi.unger@bakertilly.com or 1 (414) 777 5423 Sincerely, Baker Tilly US, LLP Wendi M. Unger, CPA, Principal DRAFT 06/30/2026 Page 4 of 114 © 2025 Baker Tilly US, LLP Page | 3 Responsibilities Our responsibilities As your independent auditor, our responsibilities include: • Planning and performing the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Reasonable assurance is a high level of assurance. • Assessing the risks of material misstatement of the financial statements, whether due to fraud or error. Included in that assessment is a consideration of the Village’s internal control over financial reporting. • Performing appropriate procedures based upon our risk assessment. • Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management. • Forming and expressing an opinion based on our audit about whether the financial statements prepared by management, with the oversight of the Village Board: • Are free from material misstatement • Present fairly, in all material respects and in accordance with accounting principles generally accepted in the United States of America • Our audit does not relieve management or the Village Board of their responsibilities. We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of the Village Board, including: • Internal control matters • Qualitative aspects of the Village’s accounting practice including policies, accounting estimates and financial statement disclosures • Significant unusual transactions • Significant difficulties encountered • Disagreements with management • Circumstances that affect the form and content of the auditors' report • Audit consultations outside the engagement team • Corrected and uncorrected misstatements • Other audit findings or issues DRAFT 06/30/2026 Page 5 of 114 © 2025 Baker Tilly US, LLP Page | 4 Audit status Significant changes to the audit plan There were no significant changes made to either our planned audit strategy or to the significant risks and other areas of emphasis identified during the performance of our risk assessment procedures. DRAFT 06/30/2026 Page 6 of 114 © 2025 Baker Tilly US, LLP Page | 5 Audit approach and results Planned scope and timing Audit focus Based on our understanding of the Village and environment in which you operate, we focused our audit on the following key areas: • Key transaction cycles • Areas with significant estimates • Assessment of new accounting standards Our areas of audit focus were informed by, among other things, our assessment of materiality. Materiality in the context of our audit was determined based on specific qualitative and quantitative factors combined with our expectations about the Village’s current year results. Key areas of focus and significant findings Significant risks of material misstatement A significant risk is an identified and assessed risk of material misstatement that, in the auditor's professional judgment, requires special audit consideration. Within our audit, we focused on the following areas below. Significant risk areas Testing approach Conclusion Management override of controls Incorporate unpredictability into audit procedures, emphasize professional skepticism and utilize audit team with industry expertise Procedures identified provided sufficient evidence for our audit opinion Improper revenue recognition due to fraud Confirmation or validation of certain revenues supplemented with detailed predictive analytics based on non-financial data and substantive testing of related receivables Procedures identified provided sufficient evidence for our audit opinion Other areas of emphasis We also focused on other areas that did not meet the definition of a significant risk, but were determined to require specific awareness and a unique audit response. Other areas of emphasis Cash and investments Revenues and receivables General disbursements Payroll Pension and OPEB liabilities Long-term debt Capital assets including infrastructure Net position and fund balance calculations Financial reporting and required disclosures DRAFT 06/30/2026 Page 7 of 114 © 2025 Baker Tilly US, LLP Page | 6 Internal control matters We considered the Village’s internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing an opinion on the financial statements. We are not expressing an opinion on the effectiveness of the Village’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency or combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We identified the following deficiencies as material weaknesses: • Inadequate segregation of duties A properly designed system of internal control includes adequate staffing as well as policies and procedures to properly segregate duties. This includes systems that are designed to limit the access or control of any one individual to your government's assets or accounting records, and to achieve a higher likelihood that errors or irregularities in your accounting processes would be discovered by your staff in a timely manner. At this time, due to staffing and financial limitations, the proper internal controls are not in place to achieve adequate segregation of duties. As a result, errors, irregularities or fraud could occur as part of the financial reporting process that may not be discovered by someone in your organization. Therefore, we are reporting a material weakness related to the internal control environment. • Missing key controls There are certain controls that are not currently in place related to significant transaction cycles. As a result, there is a risk that erroneous or unauthorized transactions or misstatements could occur without the knowledge of management or the governing body. Our recommendations for strengthening controls are listed below. Controls over utility billing • Persons involved in the cash receipting process should be independent of other billing duties. • The reconciliation of the detailed listing of receivables in the billing system and the receivable balance in the general ledger should be reviewed by someone independent of the utility billing and cash receipting processes. Since the controls listed above or other compensating controls are not currently in place, errors or irregularities could occur as part of the accounting processes that might not be discovered by management or the governing body. Therefore, the absence of these controls is considered to be a material weakness. We recommend that a designated employee review the segregation of duties, risks and these potential controls and determine whether additional controls should be implemented. This determination should take into consideration a cost/benefit analysis. DRAFT 06/30/2026 Page 8 of 114 © 2025 Baker Tilly US, LLP Page | 7 • Financial statement close process Properly designed systems of internal control provide your organization with the ability to process and record accurate monthly and year-end transactions and annual financial reports. Our audit includes a review and evaluation of the internal controls relating to financial reporting. Common attributes of a properly designed system of internal control for financial reporting are as follows • There is adequate staffing to prepare financial reports throughout the year and at year-end. • Material misstatements are identified and corrected during the normal course of duties. • Complete and accurate financial statements, including footnotes, are prepared. • Financial reports are independently reviewed for completeness and accuracy. Our evaluation of the internal controls over financial reporting has identified control deficiencies that are considered a material weakness surrounding the preparation of financial statements and footnotes, adjusting journal entries identified by the auditors, and an independent review of financial reports. Management has not prepared financial statements that are in conformity with generally accepted accounting principles. In addition, material misstatements in the general ledger were identified during the financial audit. DRAFT 06/30/2026 Page 9 of 114 © 2025 Baker Tilly US, LLP Page | 8 Other comments and recommendations • Departmental Controls As part of our annual audit process, we focus our efforts on the primary accounting systems, internal controls, and procedures used by the Village. This is in keeping with our goal to provide an audit opinion which states that the financial statements of the Village are correct in all material respects. In some cases, the primary system of accounting procedures and controls of the Village are supported by smaller systems which are decentralized and reside within a department or location. In many cases, those systems are as simple as handling cash collections and remitting those collections to the Administrative Services Department. Generally, the more centralized a function is, the easier it is to design and implement accounting controls that provide some level of checks and balances. That is because you are able to divide certain tasks over the people available to achieve some segregation of duties. For those tasks that are decentralized, it is usually very difficult to provide for proper segregation of duties. Therefore, with one person being involved in most or all aspects of a transaction, you lose the ability to rely on the controls to achieve the safeguarding of assets and reliability of financial records. As auditors, we are required to communicate with you on a variety of topics. Since there is now more emphasis on internal controls and management's responsibilities, we believe it is appropriate to make sure that you are informed about the lack of segregation of duties that may occur at departments or locations that handle cash. The department in your Village that fits this situation may include the following: Police department As you might expect, similar situations are common in most governments. As auditors, we are required to focus on the financial statements at a highly summarized level and our audit procedures support our opinion on those financial statements. Departments or locations that handle relatively smaller amounts of money are not the primary focus of our audit. Yet, because of the lack of segregation of duties, the opportunity for loss is higher there than in centralized functions that have more controls. Because management is responsible for designing and implementing controls and procedures to detect and prevent fraud, we believe that is important for us to communicate this information to you. We have no knowledge of any fraud that has occurred or is suspected to have occurred within the departments mentioned above. However, your role as the governing body is to assess your risk areas and determine that the appropriate level of controls and procedures are in place. As always, the costs of controls and staffing must be weighed against the perceived benefits of safeguarding your assets. Without adding staff or splitting up the duties, your own day-to-day contact and knowledge of the operation are also important mitigating factors. Status of Prior Year Comments and Recommendations 1. Controls over Information Technology – This point is still valid. DRAFT 06/30/2026 Page 10 of 114 © 2025 Baker Tilly US, LLP Page | 9 Required communications Qualitative aspect of accounting practices • Accounting policies: Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we have advised management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Village are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing accounting policies was not changed during 2025. We noted no transactions entered into by the Village during the year for which accounting policies are controversial or for which there is a lack of authoritative guidance or consensus or diversity in practice. • Accounting estimates: Accounting estimates, including fair value estimates, are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements, the degree of subjectivity involved in their development and because of the possibility that future events affecting them may differ significantly from those expected. The following estimates are of most significance to the financial statements: Estimate Management's process to determine Baker Tilly's conclusions regarding reasonableness Accrued compensated absences Evaluation of hours earned and accumulated in accordance with employment policies and average wage per hour rates Reasonable in relation to the financial statements as a whole Net pension liability and related deferrals Evaluation of information provided by the Wisconsin Retirement System Reasonable in relation to the financial statements as a whole Total pension liability and related deferrals Key assumptions set by management with the assistance of a third-party actuary Reasonable in relation to the financial statements as a whole Net/Total OPEB liability and related deferrals Key assumptions set by management with the assistance of a third party actuary Reasonable in relation to the financial statements as a whole Depreciation Evaluate estimated useful life of the asset and original acquisition value Reasonable in relation to the financial statements as a whole There have been no significant changes made by management to either the processes used to develop the particularly sensitive accounting estimates, or to the significant assumptions used to develop the estimates noted above. • Financial statement disclosures: The disclosures in the financial statements are neutral, consistent and clear. DRAFT 06/30/2026 Page 11 of 114 © 2025 Baker Tilly US, LLP Page | 10 Significant unusual transactions There have been no significant transactions that are outside the normal course of business for the Village or that otherwise appear to be unusual due to their timing, size or nature. Significant difficulties encountered during the audit We encountered no significant difficulties in dealing with management and completing our audit. Disagreements with management Professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Audit report There have been no departures from the auditors' standard report. Audit consultations outside the engagement team We encountered no difficult or contentious matters for which we consulted outside of the engagement team. Corrected misstatements Professional standards require us to accumulate misstatements identified during the audit, other than those that are clearly trivial and to communicate accumulated misstatements to management. Management is in agreement with the misstatements we have identified, and they have been corrected in the financial statements. The schedule within the attachments summarizes the material corrected misstatements, that, in our judgment, may not have been detected except through our auditing procedures. The internal control matters section of this report describes the effects on the financial reporting process indicated by the corrected misstatements, other than those that we consider to be of a lesser magnitude than significant deficiencies and material weaknesses. Other audit findings or issues We encountered no other audit findings or issues that require communication at this time. We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Village’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. DRAFT 06/30/2026 Page 12 of 114 © 2025 Baker Tilly US, LLP Page | 11 Other information in documents containing audited basic financial statements The Village's audited financial statements are "general purpose" financial statements. General purpose financial statements consist of the basic financial statements that can be used by a broad group of people for a broad range of activities. Once we have issued our audit report, we have no further obligation to update our report for events occurring subsequent to the date of our report. The Village can use the audited financial statements in other client prepare documents, such as official statements related to the issuance of debt, without our acknowledgement. Unless we have been engaged to perform services in connection with any subsequent transaction requiring the inclusion of our audit report, as well as to issue an auditor's acknowledgment letter, we have neither read the document nor performed subsequent event procedures in order to determine whether or not our report remains appropriate. Management's consultations with other accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters. Written communications between management and Baker Tilly The attachments include copies of other material written communications, including a copy of the management representation letter. Compliance with laws and regulations We did not identify any non-compliance with laws and regulations during our audit. Fraud We did not identify any known or suspected fraud during our audit. Going concern Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating to our evaluation of the Village’s ability to continue as a going concern for a reasonable period of time but no less than 12 months from the date of the financial statements, including the effects on the financial statements and the adequacy of the related disclosures, and the effects on the auditor's report. No such matters or conditions have come to our attention during our engagement. Independence We are not aware of any relationships between Baker Tilly and the Village that, in our professional judgment, may reasonably be thought to bear on our independence. Related parties We did not have any significant findings or issues arise during the audit in connection with the Village’s related parties. DRAFT 06/30/2026 Page 13 of 114 © 2025 Baker Tilly US, LLP Page | 12 Other matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information which accompanies the financial statements but is not RSI. With respect to the supplementary information, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Nonattest services The following nonattest services were provided by Baker Tilly: • Financial statement preparation • Compiled regulatory reports • Utility rate consulting In addition, as part of the financial statement preparation we prepared GASB No. 34 conversion entries which are summarized in the "Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position" and the "Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities" in the financial statements. None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. DRAFT 06/30/2026 Page 14 of 114 © 2025 Baker Tilly US, LLP Page | 13 Village Board resources Our business is to know every aspect of yours and to maintain a constant lookout for what's next. We invite you to learn about some of the trending challenges and opportunities for public sector organizations like yours and how Baker Tilly can help. To explore more trending topics and regulatory updates, visit our resource page at https://www.bakertilly.com/insights/audit-committee-resource-page. Capital project oversight Public sector capital projects face increasing pressure from cost escalation, supply chain disruption, regulatory complexity and heightened scrutiny around transparency and accountability. Strong planning, governance and controls are critical across the full project life cycle, from feasibility and funding strategy through execution and closeout. Independent oversight helps chart a clear course from planning to delivery. Our teams work alongside leadership to strengthen governance, establish financial and contractual controls, align funding with project goals, and monitor performance throughout execution, helping projects stay on schedule, within budget, and aligned with community priorities. Succession planning An aging workforce, rising retirement rates, and competition for specialized talent make succession planning a fiscal and operational a priority for public sector organizations. By identifying critical roles, assessing workforce risk, building internal talent pipelines, and integrating succession planning with broader workforce strategies, Baker Tilly helps organizations preserve institutional knowledge and maintain continuity, today, and into the future. Economic development Successful economic development depends on disciplined planning, sound financial analysis and coordinated execution. Public sector leaders must balance incentives, infrastructure investment, funding opportunities and stakeholder priorities while maintaining fiscal responsibility. Baker Tilly’s supports local governments with strategic and financial planning, incentive structuring and negotiation, tax increment financing administration, project financing, grant strategy, and economic and fiscal impact analysis. This integrated approach helps leaders move from vision to action, strengthening communities and advancing sustainable, long-term growth. DRAFT 06/30/2026 Page 15 of 114 © 2025 Baker Tilly US, LLP Page | 14 Management representation letter DRAFT 06/30/2026 Page 16 of 114 July XX, 2026 Baker Tilly US, LLP 790 N Water St, Suite 2000 Milwaukee, Wisconsin 53202 Dear Baker Tilly US, LLP: We are providing this letter in connection with your audit of the financial statements of the Village of Fox Point as of December 31, 2025 and for the year then ended for the purpose of expressing opinions as to whether the financial statements 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 and the respective changes in financial position and cash flows, where applicable, in conformity with accounting principles generally accepted in the United States of America (GAAP). We confirm that we are responsible for the fair presentation of the previously mentioned financial statements in conformity with accounting principles generally accepted in the United States of America. We are also responsible for adopting sound accounting policies, establishing and maintaining internal control over financial reporting, and preventing and detecting fraud. Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, the following representations made to you during your audit. Financial Statements 1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated November 22, 2021, including our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP. 2) The financial statements referred to above are fairly presented in conformity with accounting principles generally accepted in the United States of America. We have engaged you to advise us in fulfilling that responsibility. The financial statements include all properly classified funds of the primary government and all component units required by accounting principles generally accepted in the United States of America to be included in the financial reporting entity. 3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. DRAFT 06/30/2026 Page 17 of 114 5) Significant assumptions we used in making accounting estimates, including those measured at fair value, if any, are reasonable in accordance with U.S. GAAP. 6) All events subsequent to the date of the financial statements and for which accounting principles generally accepted in the United States of America require adjustment or disclosure have been adjusted or disclosed. No other events, including instances of noncompliance, have occurred subsequent to the financial statement date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements. 7) All material transactions have been recorded in the accounting records and are reflected in the financial statements. 8) All known audit and bookkeeping adjustments have been included in our financial statements, and we are in agreement with those adjustments. 9) There are no known or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. There are no unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with accounting principles generally accepted in the United States of America. 10) Guarantees, whether written or oral, under which the Village is contingently liable, if any, have been properly recorded or disclosed. Information Provided 11) We have provided you with: a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as financial records and related data, documentation, and other matters . b) Additional information that you have requested from us for the purpose of the audit. c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. d) Minutes of the meetings of the Village Board or summaries of actions of recent meetings for which minutes have not yet been prepared. 12) We have not completed an assessment of the risk that the financial statements may be materially misstated as a result of fraud. 13) We have no knowledge of any fraud or suspected fraud that affects the entity and involves: a) Management, b) Employees who have significant roles in internal control, or c) Others where the fraud could have a material effect on the financial statements. 14) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, regulators, or others. DRAFT 06/30/2026 Page 18 of 114 15) We have no knowledge of known instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements. 16) There are no related parties or related party relationships and transactions, including side agreements, of which we are aware. Other 17) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 18) We have a process to track the status of audit findings and recommendations. 19) We have identified to you any previous financial audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 20) We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for our report. 21) The Village of Fox Point has no plans or intentions that may materially affect the carrying value or classification of assets, deferred outflows of resources, liabilities, deferred inflows of resources or fund balance or net position. 22) We are responsible for compliance with federal, state, and local laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits, debt contracts, and IRS arbitrage regulations; and we have identified and disclosed to you all federal, state, and local laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. 23) There are no: a) Violations or possible violations of budget ordinances, federal, state, and local laws or regulations (including those pertaining to adopting, approving and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, or for reporting on noncompliance, except those already disclosed in the financial statement, if any. b) Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by accounting principles generally accepted in the United States of America. c) Nonspendable, restricted, committed, or assigned fund balances that were not properly authorized and approved. d) Rates being charged to customers other than the rates as authorized by the applicable authoritative body. e) Violations of restrictions placed on revenues as a result of bond resolution covenants such as revenue distribution or debt service funding. DRAFT 06/30/2026 Page 19 of 114 24) As part of your audit, you assisted with the preparation of the financial statements. We acknowledge our responsibility as it relates to those non-audit services, including that we assume all management responsibilities; oversee the services by designating an individual, preferably within senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of the services performed; and accept responsibility for the results of the services. We have reviewed, approved, and accepted responsibility for those financial statements. 25) We have made all management decisions and performed all management functions in relation to the nonattest services provided by Baker Tilly US, LLP or Baker Tilly Advisory Group, LP, as identified in the engagement letter or an addendum to the engagement letter. We have designated Mary Carthell, Finance Manager, an employee with suitable skill, knowledge, and/or experience to oversee the services received. Furthermore, we have established and maintained internal controls, including monitoring activities related to the nonattest services provided by Baker Tilly US, LLP or Baker Tilly Advisory Group, LP, and we have evaluated and accept responsibility for the adequacy and results of the nonattest services received. The nonattest services provided by Baker Tilly US, LLP or Baker Tilly Advisory Group, LP, are listed below. a) Financial statement preparation b) Compiled regulatory reports c) Utility rate consulting None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. 26) The Village of Fox Point has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 27) The Village of Fox Point has complied with all aspects of contractual agreements that would have a material effect on the financial statement in the event of noncompliance. 28) The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations, if any. Component units have been properly presented as either blended or discrete. 29) The financial statements properly classify all funds and activities. 30) All funds that meet the quantitative criteria in GASB Statement No. 34 and No. 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 31) Components of net position (net investment in capital assets; restricted; and unrestricted) and components of fund balance (nonspendable, restricted, committed, assigned and unassigned) are properly classified and, if applicable, approved. 32) Provisions for uncollectible receivables, if any, have been properly identified and recorded. 33) Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. DRAFT 06/30/2026 Page 20 of 114 34) Revenues are appropriately classified in the statement of activities within program revenues and general revenues. 35) Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 36) Provision, when material, has been made to reduce excess or obsolete inventories to their estimated net realizable value. 37) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated/amortized. Any known impairments have been recorded and disclosed. 38) Tax-exempt bonds issued have retained their tax-exempt status. 39) We have appropriately disclosed the Village of Fox Point's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position are available and have determined that net position were properly recognized under the policy. We have also disclosed our policy regarding which resources (that is, restricted, committed, assigned or unassigned) are considered to be spent first for expenditures for which more than one resource classification is available. 40) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 41) With respect to the supplementary information, (SI): a) We acknowledge our responsibility for presenting the SI in accordance with accounting principles generally accepted in the United States of America, and we believe the SI, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the SI have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. b) If the SI is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date we issue the supplementary information and the auditor's report thereon. 42) We assume responsibility for, and agree with, the findings of specialists in evaluating the pension and post employment benefits and have adequately considered the qualifications of the specialists in determining the amounts and disclosures used in the financial statements and underlying accounting records. We did not give or cause any instructions to be given to specialists with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had impact on the independence or objectivity of the specialists. 43) We assume responsibility for, and agree with, the information provided by the Wisconsin Retirement System as audited by the Legislative Audit Bureau relating to the net pension asset/liability and related deferred outflows and deferred inflows and have adequately considered the reasonableness of the amounts and disclosures used in the financial statements and underlying accounting records. We also assume responsibility for the census data that has been reported to the plan. 44) We have evaluated our ongoing operations and determined there are no concentrations or constraints meeting the requirements for disclosure under GASB Statement No. 102. DRAFT 06/30/2026 Page 21 of 114 45) The auditing standards define an annual report as “a document, or combination of documents, typically prepared on an annual basis by management or those charged with governance in accordance with law, regulation, or custom, the purpose of which is to provide owners (or similar stakeholders) with information on the entity’s operations and the financial results and financial position as set out in the financial statements.” Among other items, an annual report contains, accompanies, or incorporates by reference the financial statements and the auditors’ report thereon. We confirm that we do not prepare and have no plans to prepare an annual report. Sincerely, Village of Fox Point Signed: ______________________________________________ Mr. Steve Kreklow, Village Manager Signed: _______________________________________________ Ms. Mary Carthell, Finance Manager DRAFT 06/30/2026 Page 22 of 114 © 2025 Baker Tilly US, LLP Page | 21 Client service team Wendi M. Unger, CPA Principal 790 N. Water Street Suite 2000 Milwaukee, Wisconsin 53202 United States T +1 (414) 777 5423 wendi.unger@bakertilly.com Jordan Quilling Senior Associate 790 N. Water Street Suite 2000 Milwaukee, Wisconsin 53202 United States T +1 (414) 256 7061 jordan.quilling@bakertilly.com DRAFT 06/30/2026 Page 23 of 114 © 2025 Baker Tilly US, LLP Page | 22 Accounting changes relevant to the Village of Fox Point Future accounting standards update GASB statement number Description Potentially impacts you Effective date 103 Financial reporting model improvements 12/31/26 104 Disclosure of certain capital assets 12/31/26 105 Subsequent events 12/31/27 Further information on upcoming GASB pronouncements. Changes to the financial reporting model GASB Statement 103, Financial Reporting Model Improvements, builds on Statement 34 by providing key targeted improvements to the financial reporting model. Its requirements are designed to: • Enhance the effectiveness of governmental financial reports in providing information essential for decision making and assessing a government's accountability, and • Address certain application issues. The targeted improvements contained in Statement 103 establish or modify existing accounting and financial reporting requirements related to: • Management's discussion and analysis - While the overall requirements do not substantially change management's discussion and analysis, the modifications are meant to improve the analysis included in this section and provide details about the items that should be discussed as currently known facts, decisions, or conditions expected to have a significant financial effect in the subsequent period. • Unusual or infrequent items (previously known as extraordinary and special items) - The new statement simplifies GASB literature by eliminating the separate presentation of extraordinary and special items. Under the requirement of Statement 103, applicable items will either be identified as unusual or infrequent, or both. • Presentation of the proprietary fund statement of revenues, expenses and changes in fund net position - The changes are designed to improve consistency around the classification of items in these statements by better defining what should be included in operating revenues and expenses and nonoperating revenues and expenses including, for example, the addition of subsidies received or provided as a new category of nonoperating revenues and expenses. • Major component unit information, and budgetary comparison information - Statement 103 is designed to improve the consistency of the reporting of major component unit information and budgetary comparison information by specifying required placement of that information. DRAFT 06/30/2026 Page 24 of 114 © 2025 Baker Tilly US, LLP Page | 23 Revisions to disclosures for certain capital assets Governments are required to provide information on capital assets in the footnotes to the financial statements as outlined in GASB Statement No. 34. Recent standards have impacted the accounting and reporting for capital assets and as a result GASB issued Statement No. 104, Disclosure of Certain Capital Assets to provide enhanced disclosures for certain capital assets, including (a) Lease assets reported under Statement No. 87, intangible right-to-use assets reported under Statement No. 94 and subscription assets reported under Statement No. 96 should all be disclosed separately, and by major class of underlying asset. In addition, if there are any other intangible assets reported they should also be disclosed separately. (b) Capital assets that are held for sale should have the ending balance with separate disclosure for historical cost and related accumulated depreciation as well as any outstanding debt for which the asset is pledged as collateral disclosed by major class of asset. Assets held for sale are defined as those for which the government has decided to pursue the sale, and it is probable that the sale will be finalized within one year of the financial statement date. While these changes are focused on footnote disclosures it is important to plan ahead to ensure the required information is available for implementation. Updated guidance for the financial reporting of subsequent events GASB Statement No. 105, Subsequent Events, which supersedes GASB Statement No. 56, is intended to enhance consistency in the application of requirements for subsequent events. The Statement defines subsequent events as transactions or other events that occur after year end but before the date the financial statements are available to be issued. The date the financial statements are available to be issued is the date at which (a) the financial statements are complete in a form and format that complies with generally accepted accounting principles (GAAP) and (b) approvals necessary for issuance have been obtained, or typically the opinion date. The definition of subsequent events in this Statement modifies the subsequent events time frame throughout the GASB literature. The Statement also clarifies: • The different types of subsequent events (recognized and nonrecognized events) • When note disclosures are required • The information that should be included in those note disclosures DRAFT 06/30/2026 Page 25 of 114 © 2025 Baker Tilly US, LLP Page | 24 Material corrected misstatements Description Opinion unit Amount To adjust transfer from debt service fund to capital projects fund Multiple opinion units $ 1,600,000 To reallocate debt issuance proceeds Multiple opinion units 235,000 To reallocate debt premium Multiple opinion units 109,298 To record current year Sewer fund capital asset activity Sewer fund 400,221 To cover deficit in debt service fund Multiple opinion units 478,014 To reallocate accounts payable to correct account Water fund 99,186 To record contributed capital in Storm water fund Storm water fund 369,678 To record current year Water fund capital asset activity Water fund 3,845,073 To record current year Sewer fund capital asset activity Sewer fund 508,915 To reallocate expenses to correct expense accounts General fund 259,246 To record current year WRS activity Multiple opinion units 91,638 To record NSWC current year activity Water fund 144,930 To adjust property tax equivalent Water fund 58,236 The remaining misstatements that were identified and corrected by management were not material individually or in the aggregate to the financial statements taken as a whole. DRAFT 06/30/2026 Page 26 of 114 © 2025 Baker Tilly US, LLP Page | 25 Two-way audit communications As part of our audit of your financial statements, we are providing communications to you throughout the audit process. Auditing requirements provide for two-way communication and are important in assisting the auditor and you with more information relevant to the audit. As this past audit is concluded, we use what we have learned to begin the planning process for next year's audit. It is important that you understand the following points about the scope and timing of our next audit: a. We address the significant risks of material misstatement, whether due to fraud or error, through our detailed audit procedures. b. We will obtain an understanding of the five components of internal control sufficient to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing and extent of further audit procedures. We will obtain a sufficient understanding by performing risk assessment procedures to evaluate the design of controls relevant to an audit of financial statements and to determine whether they have been implemented. We will use such knowledge to: • Identify types of potential misstatements • Consider factors that affect the risks of material misstatement • Design tests of controls, when applicable and substantive procedures c. We will not express an opinion on the effectiveness of internal control over financial reporting or compliance with laws, regulations and provisions of contracts or grant programs. d. The concept of materiality recognizes that some matters, either individually or in the aggregate, are important for fair presentation of financial statements in conformity with generally accepted accounting principles while other matters are not important. In performing the audit, we are concerned with matters that, either individually or in the aggregate, could be material to the financial statements. Our responsibility is to plan and perform the audit to obtain reasonable assurance that material misstatements, whether caused by errors or fraud, are detected. Our audit will be performed in accordance with auditing standards generally accepted in the United States of America. We are very interested in your views regarding certain matters. Those matters are listed here: a. We typically will communicate with your top level of management unless you tell us otherwise. b. We understand that the governing board has the responsibility to oversee the strategic direction of your organization, as well as the overall accountability of the entity. Management has the responsibility for achieving the objectives of the entity. c. We need to know your views about your organization's objectives and strategies, and the related business risks that may result in material misstatements. d. We anticipate that the Village will receive an unmodified opinion on its financial statement. e. Which matters do you consider warrant particular attention during the audit, and are there any areas where you request additional procedures to be undertaken? f. Have you had any significant communications with regulators or grantor agencies? g. Are there other matters that you believe are relevant to the audit of the financial statements? DRAFT 06/30/2026 Page 27 of 114 © 2025 Baker Tilly US, LLP Page | 26 Also, is there anything that we need to know about the attitudes, awareness and actions of the governing body concerning: a. The entity's internal control and its importance in the entity, including how those charged with governance oversee the effectiveness of internal control? b. The detection or the possibility of fraud? We also need to know if you have taken actions in response to developments in financial reporting, laws, accounting standards, governance practices or other related matters, or in response to previous communications with us. With regard to the timing of our audit, here is some general information. If necessary, we may do preliminary financial audit work during the months of October-December, and sometimes early in January. Our final financial fieldwork is scheduled during the spring to best coincide with your readiness and report deadlines. After fieldwork, we wrap up our financial audit procedures at our office and may issue drafts of our report for your review. Final copies of our report and other communications are issued after approval by your staff. This is typically 6-12 weeks after final fieldwork, but may vary depending on a number of factors. Keep in mind that while this communication may assist us with planning the scope and timing of the audit, it does not change the auditor's sole responsibility to determine the overall audit strategy and the audit plan, including the nature, timing and extent of procedures necessary to obtain sufficient appropriate audit evidence. We realize that you may have questions on what this all means, or wish to provide other feedback. We welcome the opportunity to hear from you. DRAFT 06/30/2026 Page 28 of 114 Village of Fox Point Financial Statements and Supplementary Information December 31, 2025 DRAFT 06/30/2026 Page 29 of 114 Village of Fox Point Table of Contents December 31, 2025 Page Independent Auditors' Report i Required Supplementary Information Management's Discussion and Analysis iii Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 1 Statement of Activities 2 Fund Financial Statements Balance Sheet - Governmental Funds 3 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 4 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Statement of Net Position - Proprietary Funds 7 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 9 Statement of Cash Flows - Proprietary Funds 10 Statement of Fiduciary Net Position - Fiduciary Fund 12 Statement of Changes in Fiduciary Net Position - Fiduciary Fund 13 Index to Notes to Financial Statements 14 Notes to Financial Statements 15 DRAFT 06/30/2026 Page 30 of 114 Village of Fox Point Table of Contents December 31, 2025 Page Required Supplementary Information Detailed Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 55 Schedule of Proportionate Share of the Net Pension Liability (Asset) - Wisconsin Retirement Fund 56 Schedule of Employer Contributions - Wisconsin Retirement System 56 Schedule of Changes in the Total Pension Liability and Related Ratios - Supplemental Pension (Stipend) Plan 57 Schedule of Changes in the Total OPEB Liability and Related Ratios - Health Insurance 58 Schedule of Proportionate Share of the Net OPEB Liability - Local Retiree Life Insurance Fund (LRIF) 59 Schedule of Employer Contributions - Local Retiree Life Insurance Fund (LRIF) 59 Notes to Required Supplementary Information 60 Supplementary Information Detailed Schedule of Revenues and Other Financing Sources - Budget and Actual - General Fund 62 Detailed Schedule of Expenditures and Other Financing Uses - Budget and Actual - General Fund 64 Combining Balance Sheet - Nonmajor Governmental Funds 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 66 DRAFT 06/30/2026 Page 31 of 114 Independent Auditors' Report To the Village Board of Village of Fox Point Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Village of Fox Point (the Village), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. In our opinion, the accompanying 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 Fox Point, Wisconsin, as of December 31, 2025 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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. i DRAFT 06/30/2026 Page 32 of 114 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. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. 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. The supplementary information 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. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole. Milwaukee, Wisconsin July XX, 2026 ii DRAFT 06/30/2026 Page 33 of 114 MANAGEMENT'S DISCUSSION AND ANALYSIS DRAFT 06/30/2026 Page 34 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) iii The Village of Fox Point (Village) offers the readers of the Village's financial statements this narrative overview and analysis of the financial activities for the fiscal year ended December 31, 2025. The discussion and analysis presents the highlights of financial activities and financial position for the Village. Since the analysis focuses on significant financial issues, major financial activities and resulting changes in financial position, budget changes and variances from the budget and specific issues related to funds and the economic factors currently affecting the Village, please read it in conjunction with the Village's financial statements following this section. Financial Highlights  The assets and deferred outflows of resources of the Village ex ceeded its liabilities and deferred inflows of resources at the close of the fiscal year ended December 31, 2025 by $39,732,040. Of this amount, the governmental activities net position totaled $13,115,788, while the business-type activities net position totaled $26,616,252.  The Village's total net position increased by $232,504, governmental net position decreased by $61,224 and the business-type net position increased by $293,728.  As of December 31, 2025, the Village's governmental funds reported combined ending fund balances of $5,970,460 an increase of $456,119 in comparison with the prior fiscal year. Approximately 69% of this total amount, $4,061,382, is fund balance that is committed and unassigned and therefore available for spending at the government's discretion.  As of December 31, 2025, the total unassigned fund balance for the General Fund was $3,847,736 or 49% of total General Fund expenditures of $7,855,196.  As of December 31, 2025, the Village's propriet ary funds reported combined total net position of $26,616,252 an increase of $293,728 in comparison with the prior fiscal year and a total unrestricted net position of $5,771,412. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Village's basic financial statements. The Village's basic financial statements comprise three components: (1) Government-wide financial statements, (2) Fund financial statements and (3) Notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village's finances, in a manner similar to a private-sector business. The government-wide financial statements include a statement of net position and a statement of activities. These statements provide both long-term and short-term information about the Village's overall financial status. The statement of net position presents information on all of the Village's assets, deferred outflows, deferred inflows and liabilities, 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. DRAFT 06/30/2026 Page 35 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) iv The statement of activities presents information showing how the Village'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 such as revenues pertaining to uncollected taxes and earned, but unused, vacation leave. These government-wide financial statements distinguish governmental activities of the Village that are principally supported by taxes and intergovernmental revenues, such as grants, from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activities include general government, public safety, public works, health and human services, leisure activities and conservation and development. Business-type activities include Water, Sewer and Storm Water Utilities. The government-wide financial statements are presented on pages 1 - 2 of this report. Fund Financial Statements Traditional users of the Village's financial statements will find the fund financial statement presentation to be more familiar. The focus is now on major funds rather than fund types. The fund financial statements are designed to report information about groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to insure and demonstrate compliance with finance-related legal requirements. Within the basic financial statements, fund financial statements focus on the Village's most significant funds rather than the Village as a whole. Major funds are separately reported while all other funds are combined into a single, aggregated presentation. Individual fund data for nonmajor funds is provided in the form of combined statements in a later section of this report. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Unlike the government- wide financial statements, however, the governmental funds 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. This information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. A budgetary comparison statement is included for the General Fund, which is a major fund. Data from the nonmajor governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these nonmajor funds is provided in the form of combining statements located within the supplementary information following the notes to the financial statements. These statements and schedules demonstrate compliance with the Village's adopted and final revised budget. DRAFT 06/30/2026 Page 36 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) v The basic governmental fund financial statements are presented on pages 3 - 6 of this report. Proprietary Funds - Proprietary funds are generally used to account for services for which the Village charges customers a fee and are reported in the fund financial statements. There are two kinds of proprietary funds. These are enterprise funds and internal service funds. Enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. The Village uses enterprise funds to account for its water, sewer and storm water operations, which provide services to customers external to the Village organization. Internal service funds provide services and charge fees to customers within the Village organization. The Village of Fox Point has no internal service funds. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The Water Utility, Sewer Utility and Storm Water Utility Funds are major funds and are therefore presented separately within the proprietary fund financial statements. The basic proprietary fund financial statements can be found on pages 7 - 11 of this report. Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the Village government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village's own programs. Total assets of the fiduciary funds were $30,476,747. The basic fiduciary fund financial statement can be found on pages 12 - 13 of this report. Notes to the Financial Statements - The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements begin on page 15 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds are presented following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 65 - 66 of this report. Government-Wide Financial Analysis Over time, net position may serve as a useful indicator of a government's financial position. The following table reflects the condensed Statement of Net Position. In the case of the Village of Fox Point, assets exceeded liabilities by $39,732,040. DRAFT 06/30/2026 Page 37 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) vi Village of Fox Point's Summary of Net Position 2025 2024 2025 2024 2025 2024 Current and other assets 17,141,082$ 17,430,578$ 6,495,299$ 6,018,373$ 23,636,381$ 23,448,951$ Capital assets 24,301,671 24,188,590 31,257,089 28,280,004 55,558,760 52,468,594 Total assets 41,442,753 41,619,168 37,752,388 34,298,377 79,195,141 75,917,545 Pension/ OPEB deferred outflows 2,391,015 3,278,330 224,990 312,745 2,616,005 3,591,075 Deferred loss on refunding - 5,646 - - - 5,646 Total deferred outflows 2,391,015 3,283,976 224,990 312,745 2,616,005 3,596,721 Total assets and deferred outflows of resources 43,833,768$ 44,903,144$ 37,977,378$ 34,611,122$ 81,811,146$ 79,514,266$ Long-term liabilities 15,938,741$ 16,424,210$ 9,223,952$ 6,617,795$ 25,162,693$ 23,042,005$ Other liabilities 3,514,214 3,607,598 2,040,851 1,499,259 5,555,065 5,106,857 Total liabilities 19,452,955 20,031,808 11,264,803 8,117,054 30,717,758 28,148,862 Unearned revenues 9,826,931 9,538,641 - - 9,826,931 9,538,641 Pension/OPEB deferred inflows 1,413,849 2,127,096 96,323 171,544 1,510,172 2,298,640 Deferred gain on refunding 24,245 28,587 - - 24,245 28,587 Total deferred inflows 11,265,025 11,694,324 96,323 171,544 11,361,348 11,865,868 Net investment in capital assets 13,125,999 12,425,778 20,844,840 21,010,074 31,212,285 30,741,107 Restricted 821,778 773,493 - - 821,778 773,493 Unrestricted (deficit) (831,989) (22,259) 5,771,412 5,312,450 7,697,977 7,984,936 Total net position 13,115,788 13,177,012 26,616,252 26,322,524 39,732,040 39,499,536 Total liabilities, deferred inflows of resources and net position 43,833,768$ 44,903,144$ 37,977,378$ 34,611,122$ 81,811,146$ 79,514,266$ TotalBusiness-Type ActivitiesGovernmental Activities The largest portion of the Village of Fox Point's net position reflects its net investment in capital assets (e.g., land, buildings, machinery and equipment, infrastructure). The Village of Fox Point uses these capital assets to provide services to citizens and these assets are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Total net position for governmental activities decreased by $61,224 during the current fiscal year. Total net position for business-type activities increased by $293,728 during the current fiscal year. DRAFT 06/30/2026 Page 38 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) vii The table below provides a summary of the Village's changes in net position. The above condensed summary of the Village's governmental and business-type activities for the period ended December 31, 2025 reflects net position increasing by $232,504. The prior period is also included for comparative purposes. DRAFT 06/30/2026 Page 39 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) viii Governmental Activities Governmental activities decreased the Village of Fox Point's net position by $61,224. This graph shows the total 2025 governmental activities cost of $10,682,299 for this year. Of the total amount, public works accounts for $2,681,476 of the cost and public safety accounts for $4,754,245 of the cost. Additional activities expenditures in include general government at $1,536,503, leisure activities at $1,065,647, conservation and development at $86,234 and health and human services at $59,979. Interest and fiscal charges accounted for $498,215 of total activity expenses. The graph also shows how much of the governmental activities cost is covered by program revenues. The costs that are not covered by program revenue must be covered by taxes, other general revenue or transfers. DRAFT 06/30/2026 Page 40 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) ix As graphically portrayed above, the Village in 2025 received a significant amount of its revenue -75% - from property taxes. The Village is also reliant on grants and charges for services to support its governmental operations. These revenue sources provide 8 & 5%, respectively, of the governmental activities revenue. DRAFT 06/30/2026 Page 41 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) x Proprietary Funds - Proprietary Funds or Business-type activities increased the Village of Fox Point's net position by $293,728. The above graph shows total business-type activities cost of $3,677,741 for this year. Water expenses comprised $1,551,324 or 42% of the cost, Sewer expenses accounted for $1,119,170 or 30% and Storm Water expenses consisted of $1,007,247 or 27% of the cost. The graph also shows how much of the business-type activities cost is covered by program revenues. Revenue for business-type activities exceeded expenditures by 8%. The additional revenue is the result of the Village's continued effort to gradually build additional cash reserves to permit cash-financing of capital projects in the future. As shown above, in 2025, the Village's business-type activities - water, sewer and storm water utilities - received the vast majority of its revenue from charges for services. Charges for services totaled $3,746,898. Interest income, capital grants and contributions and miscellaneous income account for the remaining balance of business-type activities revenue. DRAFT 06/30/2026 Page 42 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) xi Financial Analysis of the Governmental Funds Governmental Funds - The focus of the Village of Fox Point's governmental funds is to provide information on short-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Village's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of a fiscal year. As of December 31, 2025, the Village of Fox Point's governmental funds - General Fund, Debt Service, Capital Projects Fund and Nonmajor Governmental Funds - reported a combined ending fund balances of $5,970,460. Of this amount, $1,909,078 is restricted or nonspendable to indicate that the funds are not available for spending because it has already been restricted to pay for debt ($885,370), restricted for capital projects ($929,951) and prepaid health insurance premiums and delinquent personal property taxes ($93,757). The fund balance also includes $4,061,382 that is available for spending at the government's discretion (committed and unassigned fund balance). Of this amount, $213,646 is committed for use in the Nonmajor Governmental Funds and $3,847,736 remains unassigned in the general fund. The unassigned fund balance represents 21% of the governmental fund expenditures. Total fund balance represents approximately 32% of the governmental fund expenditures in comparison. The General Fund is the chief operating fund of the Village of Fox Point. At the end of the 2025 year, unassigned fund balance of the General Fund was $3,847,736 while the nonspendable General Fund balance was $93,757. During the 2025 year, the fund balance of the Village of Fox Point's General Fund decreased by $407,752 due to higher-than-expected expenditures and lower than expected expenditures in a number of areas. The Capital Projects Fund provides funding for capital projects relating to Village-owned capital assets and capital equipment. The ending fund balance was $929,951, an increase of $929,951 from the 2024 ending fund balance of $0. The remaining funds are comprised of the Village's Special Revenue Funds (Recycling Fund, Pool Fund, Inspection Fund) and the Debt Service Fund. The Special Revenue Funds account for grants and fees designated for major Village programs - recycling, municipal pool and inspection services. The Debt Service Fund is used to account for general obligation debt that is supported by property tax revenues. At the end of 2025, the fund balance of the nonmajor funds decreased by $66,080. During 2025, the special revenue funds generated $459,539 in revenue, primarily from intergovernmental sources ($58,585), charges for services ($190,634) and licenses and permit fees ($208,680). Total expenditures were $598,047 with the majority - $188,694- for inspection services, $296,072- for recycling operations and $113,281 - for pool operations. Proprietary Funds - The Village of Fox Point's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position at the end of the year amounted to $2,154,391 for the Water Utility Fund, $1,101,280 for the Sewer Utility Fund and $2,515,741 for the Storm Water Utility Fund. The change in net position was an increase of $112,473 for the Water Utility Fund, an increase of $63,355 for the Sewer Utility Fund and an increase of $117,900 for the Storm Water Utility Fund. Other factors concerning the finances of these funds have already been addressed in the discussion of the Village of Fox Point's business-type activities. DRAFT 06/30/2026 Page 43 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) xii General Fund Budgetary Highlights The General Fund budget is adopted at the fund level of expenditure. Budget amendments were made in 2025. The Village's General Fund ended the year with an unfavorable variance in revenues and an unfavorable variance in expenditures. Revenues and other financing sources were over budget $53,144; expenditures and other financing uses were $762,217 over the final budget. Capital Asset and Debt Administration Capital Assets - The Village of Fox Point's investment in capital assets for its governmental and business type activities as of December 31, 2025 amounted to $55,558,760 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, construction in progress buildings, improvements other than buildings, machinery and equipment and infrastructure such as roads, storm sewers and bridges. The following table provides a summary of the Village's capital assets. Additional information on the Village of Fox Point's capital assets can be found in Note 3 in the notes to the financial statements. Long-Term Debt - At the end of the 2025 fiscal year, the Village of Fox Point had total bonded debt outstanding of $25,338,533. This entire amount is backed by the full faith and credit of the Village. Village of Fox Point's Outstanding Debt The Village of Fox Point maintains a bond rating of Aaa from Moody's Investor Service. Wisconsin state statutes limit the amount of general obligation debt a governmental entity may issue to 5% of its equalized valuation. The current debt limitation for the Village of Fox Point is $83,846,105 of which the Village has used $25,338,533 or 30.2%. Additional information on the Village of Fox Point's long-term debt can be found in Note 3 in the notes to the financial statements. DRAFT 06/30/2026 Page 44 of 114 Village of Fox Point Management's Discussion and Analysis December 31, 2025 (Unaudited) xiii Economic Factors and Next Year's Budgets and Rates The Village will continue to monitor tax exempt rates and interest rate sensitivity looking into 2026. If tax exempt bond rates increase to a yet to be determined level, the Village may consider utilizing a richer blend of its unrestricted cash with debt to fund capital projects. Requests for Information This financial report is designed to provide a general overview of the Village of Fox Point's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or request for additional information should be addressed to the Village's Finance Department, at 7200 N. Santa Monica Blvd., Fox Point, Wisconsin 53217. DRAFT 06/30/2026 Page 45 of 114 BASIC FINANCIAL STATEMENTS DRAFT 06/30/2026 Page 46 of 114 Village of Fox Point Statement of Net Position December 31, 2025 Governmental Activities Business-Type Activities Total Assets and Deferred Outflows of Resources Assets Cash and investments $ 7,085,804 $ 4,986,949 $ 12,072,753 Taxes receivable 8,336,907 - 8,336,907 Delinquent personal property taxes 9,860 - 9,860 Accounts receivable 104,514 726,075 830,589 Lease receivable 1,629,827 - 1,629,827 Internal balances (134,685) 134,685 - Prepaid items 108,855 - 108,855 Inventories - 33,313 33,313 Equity in North Shore Water Commission - 289,669 289,669 Cash and investments, restricted - 324,608 324,608 Capital assets: Land and right of way 5,856,476 26,561 5,883,037 Construction in progress 631,036 1,313,771 1,944,807 Other capital assets 27,798,057 44,288,693 72,086,750 Less accumulated depreciation/amortization (9,983,898) (14,371,936) (24,355,834) Total assets 41,442,753 37,752,388 79,195,141 Deferred Outflows of Resources Pension and OPEB related amounts 2,391,015 224,990 2,616,005 Total deferred outflows of resources 2,391,015 224,990 2,616,005 Liabilities, Deferred Inflows of Resources and Net Position Liabilities Accounts payable and accrued expenses 1,364,564 958,776 2,323,340 Due to other governmental units 27,004 - 27,004 Deposits 83,125 - 83,125 Noncurrent liabilities: Due within one year 2,022,208 1,095,379 3,117,587 Due in more than one year 15,956,054 9,210,648 25,166,702 Total liabilities 19,452,955 11,264,803 30,717,758 Deferred Inflows of Resources Deferred gain on refunding 24,245 - 24,245 Subsequent years tax levy 8,197,104 - 8,197,104 Pension and OPEB related amounts 1,413,849 96,323 1,510,172 Unearned lease revenue 1,629,827 - 1,629,827 Total deferred inflows of resources 11,265,025 96,323 11,361,348 Net Position Net investment in capital assets 13,125,999 20,844,840 31,212,285 Restricted for: Debt service 754,367 - 754,367 Capital projects 67,411 - 67,411 Unrestricted (deficit) (831,989) 5,771,412 7,697,977 Total net position $ 13,115,788 $ 26,616,252 $ 39,732,040 See notes to financial statements 1 DRAFT 06/30/2026 Page 47 of 114 Village of Fox Point Statement of Activities Year Ended December 31, 2025 Program Revenues Net (Expenses) Revenues and Changes in Net Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Governmental Activities Business-Type Activities Total Governmental activities: General government $ 1,536,503 $ 46,061 $ - $ (1,490,442) $ - $ (1,490,442) Public safety 4,754,245 291,900 54,267 (4,408,078) - (4,408,078) Public works 2,681,476 225,392 836,393 (1,619,691) - (1,619,691) Health and human services 59,979 - - (59,979) - (59,979) Culture, education and recreation 1,065,647 6,078 - (1,059,569) - (1,059,569) Conservation and development 86,234 25 - (86,209) - (86,209) Interest and fiscal charges 498,215 - - (498,215) - (498,215) Total governmental activities 10,682,299 569,456 890,660 (9,222,183) - (9,222,183) Business-type activities: Sewer utility 1,119,170 1,162,180 - - 43,010 43,010 Water utility 1,551,324 1,908,032 - - 356,708 356,708 Storm Water utility 1,007,247 829,287 - - (177,960) (177,960) Total business-type activities 3,677,741 3,899,499 - - 221,758 221,758 Total $ 14,360,040 $ 4,468,955 $ 890,660 (9,222,183) 221,758 (9,000,425) General Revenues Taxes: Property taxes, levied for general purposes 5,753,265 - 5,753,265 Property taxes, levied for debt service 2,148,135 - 2,148,135 Other taxes 35,586 - 35,586 Intergovernmental revenues not restricted to specific programs 534,781 - 534,781 Investment income 461,950 97,059 559,009 Miscellaneous 202,153 - 202,153 Total general revenues 9,135,870 97,059 9,232,929 Transfers 25,089 (25,089) - Change in net position (61,224) 293,728 232,504 Net Position, Beginning 13,177,012 26,322,524 39,499,536 Net Position, Ending $ 13,115,788 $ 26,616,252 $ 39,732,040 See notes to financial statements 2 DRAFT 06/30/2026 Page 48 of 114 Village of Fox Point Balance Sheet - Governmental Funds December 31, 2025 General Fund Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Total Assets Cash and investments $ 4,487,966 $ 885,370 $ 1,473,769 $ 238,698 $ 7,085,803 Receivables: Taxes 5,933,769 2,406,681 - - 8,340,450 Delinquent personal property tax 9,860 - - - 9,860 Accounts 23,379 - 43,750 37,385 104,514 Lease 1,629,827 - - - 1,629,827 Due from other funds - - - 8,662 8,662 Prepaid items 83,897 - 24,958 - 108,855 Total assets $ 12,168,698 $ 3,292,051 $ 1,542,477 $ 284,745 $ 17,287,971 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable $ 179,659 $ - $ 612,526 $ 5,256 $ 797,441 Accrued liabilities 419,695 - - 19,968 439,663 Deposits 37,250 - - 45,875 83,125 Due to other funds 143,347 - - - 143,347 Due to other governments 27,004 - - - 27,004 Total liabilities 806,955 - 612,526 71,099 1,490,580 Deferred Inflows of Resources Unearned lease revenue 1,629,827 - - - 1,629,827 Subsequent years tax levy 5,790,423 2,406,681 - - 8,197,104 Total deferred inflows of resources 7,420,250 2,406,681 - - 9,826,931 Fund Balances Nonspendable 93,757 - 24,958 - 118,715 Restricted - 885,370 904,993 - 1,790,363 Committed - - - 213,646 213,646 Unassigned 3,847,736 - - - 3,847,736 Total fund balances 3,941,493 885,370 929,951 213,646 5,970,460 Total liabilities, deferred inflows of resources and fund balances $ 12,168,698 $ 3,292,051 $ 1,542,477 $ 284,745 $ 17,287,971 See notes to financial statements 3 Page 49 of 114 Village of Fox Point Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2025 Total Fund Balances, Governmental Funds $ 5,970,460 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds. Land 1,203,921 Land improvements 4,652,555 Construction in progress 631,036 Other capital assets 27,798,057 Less accumulated depreciation/amortization (9,983,898) Deferred outflows of resources related to pensions and OPEBs do not relate to current financial resources and are not reported in the governmental funds. 2,391,015 Deferred inflows of resources related to pensions and OPEBs do not relate to current financial resources and are not reported in the governmental funds. (1,413,849) Deferred gain on refunding does not relate to current financial resources and is not reported in the governmental funds. (24,245) Some liabilities, including long-term debt, are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and notes payable (15,071,703) Accrued interest (131,002) Total OPEB obligation, Health Insurance (380,171) Total OPEB obligation, Life Insurance (204,412) Net pension liability, WRS (374,377) Unamortized debt premium (721,267) North Shore Fire Department obligations (1,012,008) Total pension liability, single-employer plan (214,324) Net Position of Governmental Activities $ 13,115,788 See notes to financial statements 4 DRAFT 06/30/2026 Page 50 of 114 Village of Fox Point Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2025 General Fund Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Total Revenues Taxes $ 5,788,851 $ 2,148,135 $ - $ - $ 7,936,986 Intergovernmental 1,101,404 - 1,012,296 58,585 2,172,285 Licenses and permits 88,064 - - 208,680 296,744 Fines, forfeitures and penalties 87,722 - - - 87,722 Public charges for services 33,077 - - 190,634 223,711 Intergovernmental charges for services 106,200 14,583 - - 120,783 Investment income 398,452 13,235 50,263 - 461,950 Miscellaneous 103,857 400 280,273 1,640 386,170 Total revenues 7,707,627 2,176,353 1,342,832 459,539 11,686,351 Expenditures Current: General government 1,555,025 - - - 1,555,025 Public safety 4,273,469 - - 188,694 4,462,163 Public works 1,596,026 - - 296,072 1,892,098 Health and human services 59,979 - - - 59,979 Culture, recreation and education 302,820 - - 113,281 416,101 Conservation and development 67,877 - - - 67,877 Capital outlay - - 2,930,067 - 2,930,067 Debt service: Principal - 6,129,700 - - 6,129,700 Interest and fiscal charges - 430,342 116,513 - 546,855 Total expenditures 7,855,196 6,560,042 3,046,580 598,047 18,059,865 Excess (deficiency) of revenues over expenditures (147,569) (4,383,689) (1,703,748) (138,508) (6,373,514) Other Financing Sources (Uses) Transfers in 338,236 2,078,014 106,531 122,428 2,645,209 Transfers out (600,442) - (1,600,000) (50,000) (2,250,442) Proceeds from sale of capital assets 2,023 - 17,870 - 19,893 Premium on debt issued - 140,675 109,298 - 249,973 Debt issued - 2,165,000 4,000,000 - 6,165,000 Total other financing sources (uses) (260,183) 4,383,689 2,633,699 72,428 6,829,633 Net change in fund balances (407,752) - 929,951 (66,080) 456,119 Fund Balances, Beginning 4,349,245 885,370 - 279,726 5,514,341 Fund Balances, Ending $ 3,941,493 $ 885,370 $ 929,951 $ 213,646 $ 5,970,460 See notes to financial statements 5 DRAFT 06/30/2026 Page 51 of 114 Village of Fox Point Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2025 Net Change in Fund Balances, Total Governmental Funds $ 456,119 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Net Position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the Statement of Activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 2,930,067 Some items reported as capital outlay were not capitalized (1,249,092) Capital assets contributed to storm water (369,678) Depreciation is reported in the government-wide financial statements (908,960) Net book value of assets retired (289,255) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements. Project reimbursements (1,110,259) Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Debt issued (6,165,000) Principal repaid 6,129,700 Governmental funds report debt premiums and discounts as other financing sources (uses) or financing sources or uses. However, in the Statement of Net Position, these are reported as additions to or deductions from long-term debt. These are allocated over the period the debt is outstanding in the Statement of Activities and are reported as interest expense. Debt premium on debt issued (249,973) Amortization of premium on debt issued 69,069 Some expenses in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences 819,396 North Shore Fire Department obligations 83,088 Accrued interest on debt (19,125) Net pension liability, WRS (35,103) Total pension liability, single-employer plan 3,235 Net OPEB liability, Life Insurance 40,467 Total OPEB liability, Health Insurance (20,548) Deferred outflows of resources related to pensions and OPEBs (887,315) Deferred inflows of resources related to pensions and OPEBs 713,247 Amortization of deferred loss on refunding (5,646) Amortization of deferred gain on refunding 4,342 Change in Net Position of Governmental Activities $ (61,224) See notes to financial statements 6 DRAFT 06/30/2026 Page 52 of 114 Village of Fox Point Statement of Net Position - Proprietary Funds December 31, 2025 Business-Type Activities - Enterprise Funds Water Utility Sewer Utility Storm Water Utility Total Assets and Deferred Outflows of Resources Current Assets Cash and investments $ 1,590,246 $ 1,030,401 $ 2,366,302 $ 4,986,949 Accounts receivables 334,592 227,587 163,896 726,075 Due from other funds 62,294 43,236 29,155 134,685 Inventory 33,313 - - 33,313 Restricted assets: Cash and investments 324,608 - - 324,608 Total current assets 2,345,053 1,301,224 2,559,353 6,205,630 Noncurrent Assets Capital assets: Construction in progress 1,019,555 - 294,216 1,313,771 Property and equipment 23,576,417 10,038,848 10,673,428 44,288,693 Land 26,561 - - 26,561 Less accumulated depreciation (8,387,012) (2,923,963) (3,060,961) (14,371,936) Other assets: Equity in North Shore Water Commission 289,669 - - 289,669 Total noncurrent assets 16,525,190 7,114,885 7,906,683 31,546,758 Total assets 18,870,243 8,416,109 10,466,036 37,752,388 Deferred Outflows of Resources Pension related amounts 116,349 71,726 36,915 224,990 Total deferred outflows of resources 116,349 71,726 36,915 224,990 See notes to financial statements 7 DRAFT 06/30/2026 Page 53 of 114 Village of Fox Point Statement of Net Position - Proprietary Funds December 31, 2025 Business-Type Activities - Enterprise Funds Water Utility Sewer Utility Storm Water Utility Total Liabilities, Deferred Inflows of Resources and Net Position Liabilities Current liabilities: Accounts payable $ 346,100 $ 448,719 $ 10,127 $ 804,946 Accrued wages 9,158 6,409 5,538 21,105 Accrued interest 76,213 9,344 20,560 106,117 Compensated absences 11,749 7,935 6,924 26,608 Current portion of long-term debt 701,800 144,300 249,279 1,095,379 Total current liabilities 1,145,020 616,707 292,428 2,054,155 Noncurrent liabilities: Long-term debt: General obligation bonds payable 6,487,396 769,055 1,915,000 9,171,451 Net pension liability 16,804 12,735 9,658 39,197 Total noncurrent liabilities 6,504,200 781,790 1,924,658 9,210,648 Total liabilities 7,649,220 1,398,497 2,217,086 11,264,803 Deferred Inflows of Resources Pension related amounts 38,779 29,824 27,720 96,323 Total deferred inflows of resources 38,779 29,824 27,720 96,323 Net Position Net investment in capital assets 9,144,202 5,958,234 5,742,404 20,844,840 Unrestricted 2,154,391 1,101,280 2,515,741 5,771,412 Total net position $ 11,298,593 $ 7,059,514 $ 8,258,145 $ 26,616,252 See notes to financial statements 8 DRAFT 06/30/2026 Page 54 of 114 Village of Fox Point Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds Water Utility Sewer Utility Storm Water Utility Total Operating Revenues Public charges for services $ 1,755,431 $ 1,162,180 $ 829,287 $ 3,746,898 Other operating revenues 152,601 - - 152,601 Total operating revenues 1,908,032 1,162,180 829,287 3,899,499 Operating Expenses Operation and maintenance 896,143 969,464 472,306 2,337,913 Depreciation/amortization 435,104 108,694 443,706 987,504 Taxes 16,826 4,661 - 21,487 Total operating expenses 1,348,073 1,082,819 916,012 3,346,904 Operating income (loss) 559,959 79,361 (86,725) 552,595 Nonoperating Revenues (Expenses) Investment income 44,001 20,345 32,713 97,059 Interest and fiscal charges (203,251) (37,002) (91,235) (331,488) Amortization - 651 - 651 Total nonoperating revenues (expenses) (159,250) (16,006) (58,522) (233,778) Income (loss) before contributions and transfers 400,709 63,355 (145,247) 318,817 Contributions and Transfers Capital contributions - municipality - - 369,678 369,678 Transfers out (288,236) - (106,531) (394,767) Total contributions and transfers (288,236) - 263,147 (25,089) Change in net position 112,473 63,355 117,900 293,728 Net Position, Beginning 11,186,120 6,996,159 8,140,245 26,322,524 Net Position, Ending $ 11,298,593 $ 7,059,514 $ 8,258,145 $ 26,616,252 See notes to financial statements 9 DRAFT 06/30/2026 Page 55 of 114 Village of Fox Point Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds Water Utility Sewer Utility Storm Water Utility Total Cash Flows From Operating Activities Received from customers $ 1,930,888 $ 1,208,008 $ 832,657 $ 3,971,553 Paid to suppliers for goods and services (885,484) (724,873) (362,159) (1,972,516) Paid to employees for services (326,062) (167,518) (124,429) (618,009) Net cash flows from operating activities 719,342 315,617 346,069 1,381,028 Cash Flows From Investing Activities Investment income 44,001 20,345 32,713 97,059 Net cash flows from investing activities 44,001 20,345 32,713 97,059 Cash Flows From Noncapital Financing Activities Paid to municipality for tax equivalent (288,236) - - (288,236) Transfers - - (106,531) (106,531) Net cash flows from noncapital financing activities (288,236) - (106,531) (394,767) Cash Flows From Capital and Related Financing Activities Debt issued 3,450,000 235,000 - 3,685,000 Debt retired (397,000) (116,300) (227,000) (740,300) Interest paid (141,653) (37,838) (101,120) (280,611) Acquisition and construction of capital assets (3,035,063) (176,822) (68,775) (3,280,660) Debt issue costs (29,500) - - (29,500) Net cash flows from capital and related financing activities (153,216) (95,960) (396,895) (646,071) Net change in cash and cash equivalents 321,891 240,002 (124,644) 437,249 Cash and Cash Equivalents, Beginning 1,592,963 790,399 2,490,946 4,874,308 Cash and Cash Equivalents, Ending $ 1,914,854 $ 1,030,401 $ 2,366,302 $ 5,311,557 See notes to financial statements 10 DRAFT 06/30/2026 Page 56 of 114 Village of Fox Point Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds Water Utility Sewer Utility Storm Water Utility Total Reconciliation of Operating Income (Loss) to Net Cash Flows From Operating Activities Operating income (loss) $ 559,959 $ 79,361 $ (86,725) $ 552,595 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation/amortization 435,104 108,694 443,706 987,504 Depreciation charged to other funds 13,073 - - 13,073 Changes in assets, deferred outflows, liabilities and deferred inflows: Accounts receivable 13,002 49,777 5,570 68,349 Due from other funds (3,219) (3,949) (2,200) (9,368) Inventories (2,250) - - (2,250) Compensated absences (528) (576) (634) (1,738) Accounts payable (301,284) 77,413 (18,736) (242,607) Other current liabilities (419) (643) 115 (947) Pension related deferrals and liabilities/assets 5,904 5,540 4,973 16,417 Net cash flows from operating activities $ 719,342 $ 315,617 $ 346,069 $ 1,381,028 Reconciliation of Cash and Cash Equivalents to the Statement of Net Position, Proprietary Funds Cash and investments $ 1,590,246 $ 1,030,401 $ 2,366,302 $ 4,986,949 Restricted cash and investments 324,608 - - 324,608 Cash and cash equivalents $ 1,914,854 $ 1,030,401 $ 2,366,302 $ 5,311,557 Noncash Capital and Related Financing Activities Equity in NSWC $ 96,408 $ - $ - Amortization premium $ - $ 651 $ - Capital assets paid with accounts payable $ 265,927 $ 253,651 $ - Capital assets contributed by municipality $ - $ - $ 369,678 See notes to financial statements 11 DRAFT 06/30/2026 Page 57 of 114 Village of Fox Point Statement of Fiduciary Net Position - Fiduciary Fund December 31, 2025 Custodial Fund Tax Collection Fund Assets Cash and investments $ 18,505,037 Tax roll receivable 11,971,710 Total assets 30,476,747 Liabilities Accounts payable 5,155 Due to other taxing units 30,471,592 Total liabilities 30,476,747 Net Position Total net position $ - See notes to financial statements 12 DRAFT 06/30/2026 Page 58 of 114 Village of Fox Point Statement of Changes in Fiduciary Net Position - Fiduciary Fund Year Ended December 31, 2025 Custodial Fund Tax Collection Fund Additions Tax collections on-behalf of underlying districts $ 25,740,257 Deductions Tax payments to underlying districts 25,740,257 Change in fiduciary net position - Net Position, Beginning - Net Position, Ending $ - See notes to financial statements 13 DRAFT 06/30/2026 Page 59 of 114 Village of Fox Point Index to Notes to Financial Statements December 31, 2025 Page 1. Summary of Significant Accounting Policies 15 Reporting Entity 15 Government-Wide and Fund Financial Statements 15 Measurement Focus, Basis of Accounting and Financial Statement Presentation 17 Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity 18 Deposits and Investments 18 Receivables 19 Inventories and Prepaid Items 19 Capital Assets 20 Deferred Outflows of Resources 20 Compensated Absences 21 Long-Term Obligations 21 Leases 21 Deferred Inflows of Resources 21 Equity Classifications 21 Pension 23 Postemployment Benefits Other Than Pensions (OPEB) 23 Basis for Existing Rates 24 2. Stewardship, Compliance and Accountability 24 Excess Expenditures and Other Financing Uses Over Budget 24 Limitations on the Village's Tax Levy 24 3. Detailed Notes on All Funds 25 Deposits and Investments 25 Receivables 26 Capital Assets 27 Interfund Receivables/Payables and Transfers 30 Long-Term Obligations 31 Lease Disclosures 35 Net Position/Fund Balances 35 4. Other Information 37 Employees' Retirement System 37 Risk Management 42 Commitments and Contingencies 43 Joint Ventures 43 Other Postemployment Benefits 45 Single-Employer Defined Benefit Pension Plan 52 Effect of New Accounting Standards on Current-Period Financial Statements 54 14 DRAFT 06/30/2026 Page 60 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 1. Summary of Significant Accounting Policies The accounting policies of the Village of Fox Point, Wisconsin (the Village) conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). Reporting Entity This report includes all of the funds of the Village. The reporting entity for the Village consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The Village has not identified any organizations that meet this criteria. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Village does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the Village are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues and expenditures/expenses. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. 15 DRAFT 06/30/2026 Page 61 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 c. In addition, any other governmental or enterprise fund that the Village believes is particularly important to financial statement users may be reported as a major fund. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: General Fund General Fund accounts for the Village's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Debt Service Fund Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditure for the payment of general long-term debt principal, interest and related costs, other than TID or enterprise debt. Capital Projects Fund Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets for the capital program. Enterprise Funds The Village reports the following major enterprise funds: Water Utility accounts for operations of the Water system. Sewer Utility accounts for operations of the Sewer system. Storm Water Utility Fund accounts for operations of the Storm water system. The Village reports the following nonmajor governmental funds: Special Revenue Funds Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Recycling Pool Inspection In addition, the Village reports the following fund type: Custodial Fund Custodial Fund is used to account for and report assets controlled by the Village and the assets are for the benefit of individuals, private organizations and/or other governmental units. Tax Collection Fund 16 DRAFT 06/30/2026 Page 62 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the Village's water, sewer and storm water utilities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled to the resources and the amounts are available. Amounts owed to the Village which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and Fiduciary Funds Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. 17 DRAFT 06/30/2026 Page 63 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water, sewer and storm water utilities are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Equity Deposits and Investments For purposes of the statement of cash flows, the Village considers all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Investment of Village funds is restricted by Wisconsin state statutes. Available investments are limited to: a. Time deposits in any credit union, bank, savings bank or trust company. b. Bonds or securities of any county, city, drainage district, technical college district, village, town or school district of the state. Also, bonds issued by a local exposition district, a local professional baseball park district, a local professional football stadium district, a local cultural arts district, the University of Wisconsin Hospitals and Clinics Authority or the Wisconsin Aerospace Authority. c. Bonds or securities issued or guaranteed by the federal government. d. The local government investment pool. e. Any security maturing in seven years or less and having the highest or second highest rating category of a nationally recognized rating agency. f. Securities of an open-end management investment company or investment trust, subject to various conditions and investment options. g. Repurchase agreements with public depositories, with certain conditions. The Village has adopted an investment policy. That policy follows the state statute for allowable investments. 18 DRAFT 06/30/2026 Page 64 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. The Wisconsin Local Government Investment Pool (LGIP) is part of the State Investment Fund (SIF) and is managed by the State of Wisconsin Investment Board. The SIF is not registered with the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin Chapter 25. The SIF reports the fair value of its underlying assets annually. Participants in the LGIP have the right to withdraw their funds in total on one day's notice. At December 31, 2025, the fair value of the Village's share of the LGIP's assets was substantially equal to the amount as reported in these statements. See Note 3 for further information. Receivables Property taxes are levied in December on the assessed value as of the prior January 1. In addition to property taxes for the Village, taxes are collected for and remitted to the county government as well as the local school district and technical college district. Taxes for all state and local governmental units billed in the current year for the succeeding year are reflected as receivables and due to other taxing units on the accompanying statement of fiduciary net position. Property tax calendar - 2025 tax roll: Lien date and levy date December 2025 Tax bills mailed December 2025 Payment in full, or January 31, 2026 First installment due January 31, 2026 Second installment due March 31, 2026 Third installment due May 31, 2026 Tax sale - 2025 delinquent real estate taxes October 2028 Delinquent real estate taxes as of July 31 are paid in full by the County, which assumes the collection thereof. No provision for uncollectible accounts receivable has been made for the water, sewer and storm water utilities because they have the right by law to place substantially all delinquent bills on the tax roll and other delinquent bills are generally not significant. During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. Inventories and Prepaid Items Governmental fund inventory items are charged to expenditure accounts when purchased. Year- end inventory was not significant. Proprietary fund inventories are generally used for construction and/or for operation and maintenance work. They are not for resale. They are valued at cost based on weighted average and charged to construction and/or operation and maintenance expense when used. 19 DRAFT 06/30/2026 Page 65 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Capital Assets Government-Wide Financial Statements Capital assets, which include property, plant and equipment (including right-to-use lease assets), are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial cost of more than $2,500 general capital assets and $5,000 for infrastructure assetsand an estimated useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. Additions to and replacements of capital assets of business-type activities are recorded at original cost, which includes material, labor and overhead. The cost of renewals and betterments relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is charged to accumulated depreciation. Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation and amortization reflected in the statement of net position. Depreciation and amortization is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Buildings 50-75 Years Land improvements 20 Years Machinery and equipment 7-30 Years Utility system 50 Years Infrastructure 40 Years Intangibles 5 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. A deferred charge on refunding arises from the advance refunding of debt. The difference between the cost of the securities placed in trust for future payments of the refunded debt and the net carrying value of that debt is deferred and amortized as a component of interest expense over the shorter of the term of the refunding issue or the original term of the refunded debt. The unamortized amount is reported as a deferred outflow of resources in the government-wide and proprietary fund financial statements. 20 DRAFT 06/30/2026 Page 66 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Compensated Absences Under terms of employment, employees are granted vacations in varying amounts. Vacation pay is accrued in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation will be made at rates in effect when the benefits are used. Accumulated vacation liabilities at December 31, 2025, are determined on the basis of current salary rates and include salary related payments. Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes and bonds payable, pension and OPEB obligations. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. For the government-wide statements and proprietary fund statements, bond premiums and discounts are amortized over the life of the issue using the straight-line method. The balance at year end is shown as an increase or decrease in the liability section of the statement of net position. Leases The Village is a lessor because it leases capital assets to other entities. As a lessor, the Village reports a lease receivable and corresponding deferred inflow of resources in both the fund financial statements and government-wide financial statements. The Village continues to report and depreciate the capital assets being leased as capital assets of the primary government. Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net assets that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net Investment in Capital Assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation/amortization and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. 21 DRAFT 06/30/2026 Page 67 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 b. Restricted Net Position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted Net Position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." The net position section includes an adjustment for capital assets owned by the business-type activities column, but financed by the debt of the governmental activities column. The amount is a reduction of "net investment in capital assets" and an increase in "unrestricted" net position, shown only in the total column. A reconciliation of this adjustment is as follows: Governmental Activities Business-Type Activities Adjustment Total Net investment in capital assets $ 13,125,999 $ 20,844,840 $ (2,758,554) $ 31,212,285 Unrestricted (1,587,998) 5,771,412 2,758,554 6,941,968 When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (resolution) of the Village Board. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Village Board that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Village Board has, by resolution, adopted a financial policy authorizing the Village Manager to assign amounts for a specific purpose. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. 22 DRAFT 06/30/2026 Page 68 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Village would then first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The Village has a formal minimum fund balance policy. That policy is to maintain the Village's General Fund fund balance as of January 1st of each year to be no less than 10% of that year's adopted General Fund operating budget. The General Fund fund balance at year end was $3,941,493 or approximately 48% of the 2026 General Fund operating budget. See Note 3 for further information. Pension The fiduciary net position of the Wisconsin Retirement System (WRS) has been determined using the flow of economic resources measurement focus and accrual basis of accounting. This includes for purposes of measuring the following:  Net Pension Liability (Asset);  Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions; and  Pension Expense (Revenue). Information about the fiduciary net position of the WRS and additions to/deductions from WRS' fiduciary net position have been determined on the same basis as they are reported by the WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Postemployment Benefits Other Than Pensions (OPEB) The fiduciary net position of the Local Retiree Life Insurance Fund (LRLIF) has been determined using the flow of economic resources measurement focus and the accrual basis of accounting. This includes for purposes of measuring following:  Net OPEB Liability (Asset);  Deferred Outflows of Resources and Deferred Inflows of Resources Related to Other Postemployment Benefits; and  OPEB Expense (Revenue). Information about the fiduciary net position of the LRLIF and additions to/deductions from LRLIF's fiduciary net position have been determined on the same basis as they are reported by LRLIF. For this purpose, benefit payments (including refunds of member contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 23 DRAFT 06/30/2026 Page 69 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Basis for Existing Rates Water Rates Current water rates as approved by the PSCW were placed into effect on August 1, 2025. Sewer Rates Current sewer rates as approved by the Village Board were placed into effect on January 1, 2024. Storm Water Rates Current storm water rates as approved by the Village Board were placed into effect January 1, 2024. 2. Stewardship, Compliance and Accountability Excess Expenditures and Other Financing Uses Over Budget The following funds had significant expenditures and other financing uses over budget: Funds Budgeted Expenditures and Other Financing Uses Actual Expenditures and Other Financing Uses Excess Expenditures and Other Financing Uses Over Budget Debt Service Fund $ 2,177,719 $ 6,560,042 $ 4,382,323 Capital Projects Fund 3,370,305 4,646,580 1,276,275 Special Revenue Fund, Inspection 195,372 238,694 43,322 Special Revenue Fund, Pool 106,527 113,886 7,359 The Village controls expenditures at the fund level. Some individual departments experienced expenditures which exceeded appropriations. The detail of those items can be found in the Village's year-end budget to actual report. Limitations on the Village's Tax Levy Wisconsin law limits the Village's future tax levies. Generally the Village is limited to its prior tax levy dollar amount (excluding TIF Districts), increased by the greater of the percentage change in the Village's equalized value due to net new construction or zero percent. Changes in debt service from one year to the next are generally exempt from this limit with certain exceptions. The Village is required to reduce its allowable levy by the estimated amount of fee revenue it collects for certain services, if those services were funded in 2013 by the property tax levy. Levies can be increased above the allowable limits if the amount is approved by referendum. 24 DRAFT 06/30/2026 Page 70 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 3. Detailed Notes on All Funds Deposits and Investments The Village maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and balance sheet as cash and investments. The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Deposits $ 7,950,187 $ 6,443,769 Custodial credit LGIP 22,951,911 22,951,911 Credit Petty cash 300 - N/A Total deposits and investments $ 30,902,398 $ 29,395,680 Reconciliation to financial statements Per statement of net position: Unrestricted cash and investments $ 12,072,753 Restricted cash and investments 324,608 Per statement of net position, fiduciary fund: Tax collection 18,505,037 Total deposits and investments $ 30,902,398 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and non-interest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. Bank accounts are also insured by the State Deposit Guarantee Fund in the amount of $1,000,000. However, due to the nature of this fund, recovery of material principal losses may not be significant to individual municipalities. This coverage has been considered in computing custodial credit risk. The Village maintains collateral agreements with its banks. At December 31, 2025, the banks had pledged various government securities in the amount of $22,734,182 to secure the Village's deposits. Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may not be returned to the Village. The Village does not have any deposits exposed to custodial credit risk. 25 DRAFT 06/30/2026 Page 71 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Village had investments in the external Wisconsin Local Government Investment Pool which is not rated. See Note 1 for further information on deposit and investment policies. Receivables All of the receivables on the balance sheet are expected to be collected within one year, except for $9,860 of delinquent personal property taxes and $1,610,433 of lease receivables. Governmental funds report unavailable or unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of unavailable revenue and unearned revenue reported in the governmental funds were as follows: Unearned Property taxes receivable for subsequent year $ 8,197,104 Unearned lease revenue 1,629,827 Total unearned/unavailable revenue for governmental funds $ 9,826,931 Unearned revenue included in deferred inflows $ 9,826,931 Total unearned revenue for governmental funds $ 9,826,931 26 DRAFT 06/30/2026 Page 72 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated / amortized: Land $ 1,203,921 $ - $ - $ 1,203,921 Right-of-way 4,652,555 - - 4,652,555 Construction in progress 109,519 521,517 - 631,036 Total capital assets not being depreciated / amortized 5,965,995 521,517 - 6,487,512 Capital assets being depreciated / amortized: Land improvements 5,055,471 - - 5,055,471 Buildings 5,225,587 150,185 - 5,375,772 Machinery and equipment 6,270,652 512,004 2,054,855 4,727,801 Streets 9,230,157 127,590 7,943 9,349,804 Bridges 3,199,822 - - 3,199,822 Software 119,771 - 30,384 89,387 Total capital assets being depreciated / amortized 29,101,460 789,779 2,093,182 27,798,057 Total capital assets 35,067,455 1,311,296 2,093,182 34,285,569 Less accumulated depreciation / amortization for: Land improvements (1,090,505) (249,830) - (1,340,335) Buildings (1,808,125) (95,109) - (1,903,234) Machinery and equipment (3,610,575) (297,232) 1,769,433 (2,138,374) Streets (3,319,006) (205,694) 7,148 (3,517,552) Bridges (958,324) (58,518) - (1,016,842) Software (92,330) (2,577) 27,346 (67,561) Total accumulated depreciation / amortization (10,878,865) (908,960) 1,803,927 (9,983,898) Net capital assets being depreciated / amortized 18,222,595 (119,181) 289,255 17,814,159 Total governmental activities capital assets, net as reported in the statement of net position $ 24,188,590 $ 402,336 $ 289,255 $ 24,301,671 Depreciation / amortization expense was charged to functions as follows: Governmental Activities General government $ 39,234 Public safety 134,782 Public works 719,879 Culture, education and recreation 15,065 Total governmental activities depreciation / amortization expense $ 908,960 27 DRAFT 06/30/2026 Page 73 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Business-Type Activities Beginning Balance Additions Deletions Ending Balance Sewer Capital assets being depreciated / amortized: Collection system 9,311,731 400,221 - 9,711,952 Treatment and disposal 50,000 - - 50,000 General 132,381 - - 132,381 Software 114,263 30,252 - 144,515 Total capital assets being depreciated / amortized 9,608,375 430,473 - 10,038,848 Less accumulated depreciation / amortization for: Sewer capital assets (2,815,269) (108,694) - (2,923,963) Total accumulated depreciation / amortization (2,815,269) (108,694) - (2,923,963) Net capital assets being depreciated / amortized 6,793,106 539,167 - 7,114,885 Net sewer capital assets $ 6,793,106 $ 539,167 $ - $ 7,114,885 Beginning Balance Additions Deletions Ending Balance Water Capital assets not being depreciated / amortized: Land and land rights $ 26,561 $ - $ - $ 26,561 Construction in progress 125,060 1,016,856 122,361 1,019,555 Total capital assets not being depreciated / amortized 151,621 1,016,856 122,361 1,046,116 Capital assets being depreciated / amortized: Source of supply 278,542 - - 278,542 Pumping 949,168 19,720 - 968,888 Water treatment 2,015,082 3,790 7,334 2,011,538 Transmission and distribution 16,903,889 2,184,288 191,532 18,896,645 General 1,417,440 6,443 3,079 1,420,804 Total capital assets being depreciated / amortized 21,564,121 2,214,241 201,945 23,576,417 Total capital assets 21,715,742 3,231,097 324,306 24,622,533 Less accumulated depreciation / amortization for: Water capital assets (8,140,780) (448,177) 201,945 (8,387,012) Total accumulated depreciation / amortization (8,140,780) (448,177) 201,945 (8,387,012) Net capital assets being depreciated / amortized 13,423,341 2,662,418 - 15,189,405 Net water capital assets $ 13,574,962 $ 3,679,274 $ 122,361 $ 16,235,521 28 DRAFT 06/30/2026 Page 74 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Beginning Balance Additions Deletions Ending Balance Storm Water Capital assets not being depreciated: Construction in progress $ 2,700 $ 291,516 $ - $ 294,216 Total capital assets not being depreciated 2,700 291,516 - 294,216 Capital assets being depreciated / amortized: Storm water system 9,988,693 146,937 - 10,135,630 Software 127,635 - - 127,635 Equipment 410,163 - - 410,163 Total capital assets being depreciated / amortized 10,526,491 146,937 - 10,673,428 Total capital assets 10,529,191 438,453 - 10,967,644 Less accumulated depreciation / amortization for: Storm water system (2,343,475) (413,752) - (2,757,227) Software (153,487) (27,344) - (180,832) Equipment (120,293) (2,610) - (122,902) Total accumulated depreciation / amortization (2,617,255) (443,706) - (3,060,961) Net capital assets being depreciated / amortized 7,909,236 (296,769) - 7,612,467 Net storm water capital assets $ 7,911,936 $ (5,253) $ - $ 7,906,683 Business-type activities capital assets, net as reported in the statement of net position $ 28,280,004 $ 4,213,188 $ 122,361 $ 31,257,089 Depreciation / amortization expense was charged to functions as follows: Business-Type Activities Sewer $ 108,694 Water 435,104 Storm water 443,706 Total business-type activities depreciation / amortization expense $ 987,504 Depreciation/amortization expense is different from additions because of joint metering, salvage cost of removal, internal allocations and cost associated with the disposal of assets. 29 DRAFT 06/30/2026 Page 75 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Interfund Receivables/Payables and Transfers Interfund Receivables/Payables The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash and investment accounts: Receivable Fund Payable Fund Amount Water Utility General Fund $ 62,294 Sewer Utility General Fund 43,236 Storm Water Utility General Fund 29,155 Special Revenue, Recycling Fund General Fund 8,662 Total, fund financial statements 143,347 Less fund eliminations (8,662) Total internal balances, government-wide statement of net position $ 134,685 All amounts are due within one year. The principal purpose of these interfunds are due to delinquent utility bills collected during the tax collection process of the general fund. All remaining balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and (3) payments between funds are made. Transfers The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose General Fund Water Utility $ 288,236 Payment in lieu of taxes General Fund Special Revenue Fund, Inspection 50,000 Reimbursement for expenditures Debt Service Fund General Fund 478,014 Debt service requirements Special Revenue, Recycling Fund General Fund 10,182 Reimbursement for expenditures Special Revenue, Pool Fund General Fund 112,246 Reimbursement for expenditures Debt Service Fund Capital Projects Fund 1,600,000 Debt service requirements Capital Projects Fund Storm water Fund 106,531 Reimbursement for expenditures Total, fund financial statements 2,645,209 Less fund eliminations (2,250,442) Less capital assets transferred to storm water utility (369,678) Total transfers, government-wide statement of activities $ 25,089 30 DRAFT 06/30/2026 Page 76 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Fund Transferred To Fund Transferred From Amount Governmental activities Business-type activities $ 394,767 Business-type activities Governmental activities (369,678) Total government-wide financial statements $ 25,089 Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Long-Term Obligations Long-term obligations activity for the year ended December 31, 2025, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Bonds and notes payable: General obligation debt $ 15,036,403 $ 6,165,000 $ 6,129,700 $ 15,071,703 $ 1,983,154 (Discounts)/Premiums 540,363 249,973 69,069 721,267 - Total bonds and notes payable 15,576,766 6,414,973 6,198,769 15,792,970 1,983,154 Other liabilities: North Shore Fire Department obligation (NSFD) 1,095,096 - 83,088 1,012,008 39,054 Total OPEB liability, Health Insurance 359,623 20,548 - 380,171 - Net OPEB liability, Life Insurance 244,879 - 40,467 204,412 - Total pension liability, single employer plan 217,559 - 3,235 214,324 - Net pension liability, WRS 339,274 35,103 - 374,377 - Compensated absences* 819,396 - 819,396 - - Total other liabilities 3,075,827 55,651 946,186 2,185,292 39,054 Total governmental activities long-term liabilities $ 18,652,593 $ 6,470,624 $ 7,144,955 $ 17,978,262 $ 2,022,208 Business-Type Activities Bonds and notes payable: General obligation debt $ 7,322,130 $ 3,685,000 $ 740,300 $ 10,266,830 $ 1,095,379 (Discounts)/Premiums: Bond discount 651 - 651 - - Total bonds and notes payable 7,322,781 3,685,000 740,951 10,266,830 1,095,379 Other liabilities: Net pension liability, WRS 35,314 3,883 - 39,197 - Compensated absences* 28,346 - 28,346 - - Total other liabilities 63,660 3,883 28,346 39,197 - Total business-type activities long-term liabilities $ 7,386,441 $ 3,688,883 $ 769,297 $ 10,306,027 $ 1,095,379 *The change in the compensated absences liability is presented as a net change. In accordance with Wisconsin Statutes, total general obligation indebtedness of the Village may not exceed 5% of the equalized value of taxable property within the Village's jurisdiction. The debt limit as of December 31, 2025, was $83,846,105. Total general obligation debt outstanding at year end was $25,338,533. 31 DRAFT 06/30/2026 Page 77 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 General Obligation Debt All general obligation debt payable is backed by the full faith and credit of the Village. Debt in the governmental funds will be retired by future property tax levies. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. Governmental Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 2012 G.O. Debt 05/02/12 04/01/27 1.00-2.50% $ 2,500,000 $ 420,000 2016 G.O. Debt 08/01/16 04/01/26 1.50-1.65 1,901,254 96,254 2016 G.O. Refunding Debt 08/01/16 04/01/32 2.00-2.38 1,949,448 1,020,449 2017 G.O. Debt 08/02/17 04/01/32 1.50-3.0 825,000 185,000 2018 G.O. Debt 07/30/18 04/01/28 2.50-4.00 1,000,000 390,000 2019 G.O. Debt 07/30/19 04/01/29 2.00-4.00 1,615,000 865,000 2020 G.O. Debt 08/04/20 04/01/30 1.00-2.00 2,290,000 1,370,000 2021 G.O. Refunding Debt 01/05/21 04/01/26 0.98 427,000 90,000 2021 G.O. Debt 08/02/21 04/01/31 1.05-2.00 2,475,000 1,855,000 2022 G.O. Debt 07/26/22 04/01/32 3.00-4.00 1,525,000 1,170,000 2023 G.O. Debt 08/01/23 04/01/33 4.00 485,000 365,000 2024 G.O. Debt 08/01/24 04/01/34 4.00-5.00 1,205,000 1,080,000 2025 G.O. Debt 08/04/25 10/01/35 3.00-4.00 6,165,000 6,165,000 Total governmental activities, general obligation debt $ 15,071,703 32 DRAFT 06/30/2026 Page 78 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Business-Type Activities General Obligation Debt Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 Sewer 2016 G.O. Refunding 08/01/16 04/01/32 2.00-2.38% $ 20,055 $ 10,355 Water 2016 G.O. Refunding 08/01/16 04/01/32 2.00-2.38 70,496 39,196 Water 2018 G.O. Debt 07/30/18 04/01/28 2.50-4.00 200,000 65,000 Storm Water 2016 G.O. Debt 08/01/16 04/01/26 1.50-1.65 387,279 22,279 Storm Water 2017 G.O. Debt 08/01/17 04/01/32 1.50-3.0 375,000 85,000 Storm Water 2018 G.O. Debt 07/30/18 04/01/28 2.50-4.00 405,000 70,000 Storm Water 2019 G.O. Debt 07/30/19 04/01/29 2.00-4.00 215,000 100,000 Water 2020 G.O. Debt 08/04/20 04/01/30 1.00-2.00 215,000 115,000 Sewer 2021 G.O. Refunding 01/05/21 04/01/26 0.98 349,000 68,000 Storm Water 2021 G.O. Refunding 01/05/21 04/01/26 0.98 230,000 47,000 Water 2021 G.O. Debt 08/02/21 04/01/31 1.05-2.00 700,000 440,000 Water 2022 G.O. Debt 07/26/22 04/01/32 3.00-4.00 560,000 420,000 Storm Water 2022 G.O. Debt 07/26/22 04/01/32 3.00-4.00 325,000 240,000 Water 2023 G.O. Debt 08/01/23 04/01/33 4.00 1,355,000 1,140,000 Water 2024 G.O. Debt 08/01/24 04/01/34 4.00-5.00 1,640,000 1,520,000 Sewer 2024 G.O. Debt 08/01/24 04/01/34 4.00-5.00 645,000 600,000 Storm Water 2024 G.O. Debt 08/01/24 04/01/34 4.00-5.00 1,650,000 1,600,000 Water 2025 G.O. Debt 08/04/25 10/01/35 3.00-4.00 3,450,000 3,450,000 Sewer 2025 G.O. Debt 08/04/25 10/01/35 3.00-4.00 235,000 235,000 Total business-type activities, general obligation debt $ 10,266,830 Debt service requirements to maturity are as follows: Governmental Activities Business-Type Activities General Obligation Debt General Obligation Debt Years Principal Interest Principal Interest 2026 $ 1,983,154 $ 460,032 $ 1,095,379 $ 387,196 2027 2,217,500 369,884 1,082,500 331,086 2028 1,968,400 315,717 1,126,600 293,687 2029 1,894,700 262,607 1,115,300 251,597 2030 1,736,500 210,325 1,133,500 205,910 2031-2035 5,271,449 407,272 4,713,551 384,020 Total $ 15,071,703 $ 2,025,837 $ 10,266,830 $ 1,853,496 33 DRAFT 06/30/2026 Page 79 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Other Long-Term Obligations Other long-term obligations at December 31, 2025 consists of the following: Governmental Activities Other Long-Term Obligations Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2025 NSFD debt obligation 05/01/19 05/01/39 .50-2.00% $ 60,581 $ 49,242 NSFD debt obligation 01/22/20 05/01/39 2.00 302,909 240,267 NSFD debt obligation 05/23/23 03/01/43 4.00-5.00 763,876 722,499 Total governmental activities other long-term obligations $ 1,012,008 Debt service requirements to maturity are as follows: Governmental Activities Other Long-Term Obligations Years Principal Interest 2026 $ 39,054 $ 37,950 2027 40,752 36,178 2028 44,573 34,272 2029 44,997 32,264 2030 47,120 30,277 2031-2035 264,887 122,296 2036-2040 312,432 72,834 2041-2043 218,193 13,329 Total $ 1,012,008 $ 379,400 Other Debt Information Estimated payments of net pension liabilities and net and total OPEB liabilities are not included in the debt service requirement schedules. The net pension liabilities and net and total OPEB liabilities attributable to governmental activities will be liquidated primarily by the general and utility funds. There are a number of limitations and restrictions contained in the various bond indentures and loan agreements. The Village believes it is in compliance with all significant limitations and restrictions, including federal arbitrage regulations. 34 DRAFT 06/30/2026 Page 80 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Lease Disclosures Lessor - Lease Receivables Governmental Activities Lease Receivables Description Date of Inception Final Maturity Interest Rates Receivable Balance December 31, 2025 Telecom Infrastructure T, Inc. 01/01/16 12/31/60 1.25% $ 1,629,827 Total governmental activities $ 1,629,827 The Village recognized $7,414 of lease revenue during the fiscal year. The Village recognized $28,050 of interest revenue during the fiscal year. Net Position/Fund Balances Net position reported on the government-wide statement of net position at December 31, 2025, includes the following: Governmental Activities Net investment in capital assets: Land $ 1,203,921 Construction in progress 631,036 Right-of-way 4,652,555 Other capital assets, net of accumulated depreciation/amortization 17,814,159 Less long-term debt outstanding (15,071,703) Plus unspent capital related debt proceeds 862,540 Plus noncapital debt proceeds 3,779,003 Less deferred gain on refunding (24,245) Less unamortized premium on long-term debt (721,267) Total net investment in capital assets $ 13,125,999 35 DRAFT 06/30/2026 Page 81 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Governmental Funds Governmental fund balances reported on the fund financial statements at December 31, 2025, include the following: General Fund Debt Service Fund Capital Projects Fund Nonmajor Funds Total Fund Balances Nonspendable: Prepaid items $ 83,897 $ - $ 24,958 $ - $ 108,855 Delinquent personal property taxes 9,860 - - - 9,860 Subtotal 93,757 - 24,958 - 118,715 Restricted for: Debt service - 885,370 - - 885,370 Capital projects - - 904,993 - 904,993 Subtotal - 885,370 904,993 - 1,790,363 Committed to: Recycling - - - 37,384 37,384 Inspections - - - 176,262 176,262 Subtotal - - - 213,646 213,646 Unassigned 3,847,736 - - - 3,847,736 Total fund balances $ 3,941,493 $ 885,370 $ 929,951 $ 213,646 $ 5,970,460 Business-Type Activities Net investment in capital assets: Land $ 26,561 Construction in progress 1,313,771 Other capital assets, net of accumulated depreciation/amortization 29,916,757 Less long-term debt outstanding (10,266,830) Plus unspent capital related debt proceeds 324,608 Plus noncapital debt proceeds 49,551 Less capital related accounts payable (519,578) Total net investment in capital assets $ 20,844,840 36 DRAFT 06/30/2026 Page 82 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 4. Other Information Employees' Retirement System Plan Description The WRS is a cost-sharing multiple-employer defined benefit pension plan. WRS benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms may only be modified by the legislature. The retirement system is administered by the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all eligible State of Wisconsin, local government and other public employees. All employees, initially employed by a participating WRS employer on or after July 1, 2011, expected to work at least 1,200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire are eligible to participate in the WRS. ETF issues a standalone Annual Comprehensive Financial Report (ACFR), which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and-statements. Additionally, ETF issued a standalone Wisconsin Retirement System Financial Report, which can also be found using the link above. Vesting For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998, and prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must have five years of creditable service to be vested. Benefits Provided Employees who retire at or after age 65 (54 for protective occupation employees, 62 for elected officials and executive service retirement participants, if hired on or before December 31, 2016) are entitled to a retirement benefi t based on a formula factor, their final average earnings and creditable service. Final average earnings is the average of the participant's three highest annual earnings period. Creditable service includes current service and prior service for which a participant received earnings and made contributions as required. Creditable service also includes creditable military service. The retirement benefit will be calculated as a money purchase benefit based on the employee's contributions plus matching employer's contributions, with interest, if that benefit is higher than the formula benefit. Vested participants may retire at age 55 (50 for protective occupations) and receive an actuarially-reduced benefit. Participants terminating covered employment prior to eligibility for an annuity may either receive employee-required contributions plus interest as a separation benefit or leave contributions on deposit and defer application until eligible to receive a retirement benefit. The WRS also provides death and disability benefits for employees. 37 DRAFT 06/30/2026 Page 83 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Postretirement Adjustments The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system's consulting actuary. Annuity increases are not based on cost of living or other similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the floor) set at retirement. The Core and Variable annuity adjustments granted during recent years are as follows: Year Core Fund Adjustment % Variable Fund Adjustment % 2015 2.9 2.0 2016 0.5 (5.0) 2017 2.0 4.0 2018 2.4 17.0 2019 0.0 (10.0) 2020 1.7 21.0 2021 5.1 13.0 2022 7.4 15.0 2023 1.6 (21.0) 2024 3.6 15.0 Contributions Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for General category employees, including Teachers, Executives and Elected Officials. Starting on January 1, 2016, the Executives and Elected Officials category was merged into the General Employee category. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the reporting period, the WRS recognized $364,500 in contributions from the Village. Contribution rates for the plan year reported as of December 31, 2025 are: Employee Category Employee Employer General (Executives & Elected Officials) 6.90 % 6.90 % Protective with Social Security 6.90 14.30 Protective without Social Security 6.90 19.10 38 DRAFT 06/30/2026 Page 84 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Pension Liability, Pension Expense (Revenue), Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the Village reported a liability of $413,574 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2023 rolled forward to December 31, 2024. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The Village's proportion of the net pension liability was based on the Village's share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2024, the Village's proportion was 0.02516939%, which was a decrease of 0.00002480% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the Village recognized pension expense of $537,192. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between projected and actual experience $ 1,284,375 $ 1,206,910 Changes in assumptions 122,715 - Net differences between projected and actual earnings on pension plan investments 628,449 - Changes in proportion and differences between employer contributions and proportionate share of contributions 7,093 1,833 Employer contributions subsequent to the measurement date 386,659 - Total $ 2,429,291 $ 1,208,743 $386,659 reported as deferred outflows of resources related to pension resulting from the WRS Employer's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Years Ending December 31: Deferred Outflows of Resources and Deferred Inflows of Resources (Net) 2026 $ 253,552 2027 859,053 2028 (212,498) 2029 (66,218) 39 DRAFT 06/30/2026 Page 85 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Actuarial Assumptions The total pension liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: December 31, 2023 Measurement Date of Net Pension Liability (Asset): December 31, 2024 Experience Study: January 1, 2021 - December 31, 2023 Published November 19, 2024 Actuarial Cost Method: Entry Age Normal Asset Valuation Method: Fair Value Long-Term Expected Rate of Return: 6.8% Discount Rate: 6.8% Salary Increases: Wage Inflation Seniority/Merit 3.0% 0.1% - 5.7% Mortality: 2020 WRS Experience Mortality Table Postretirement Adjustments*: 1.7% * No postretirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience and other factors. 1.7% is the assumed annual adjustment based on the investment return assumption and the postretirement discount rate. Includes the impact of known Market Recognition Account deferred gains/losses on the liability for dividend payments. Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. Based on this experience study, actuarial assumptions used to measure the Total Pension Liability changed from prior year, including seniority (merit) and separation rates. The Total Pension Liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the December 31, 2023 actuarial valuation. 40 DRAFT 06/30/2026 Page 86 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Long-Term Expected Return on Plan Assets 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 by the target asset allocation percentage and by 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 Allocation Targets and Expected Returns* as of December 31, 2024 Core Fund Asset Class Asset Allocation % Long-Term Expected Nominal Rate of Return % Long-Term Expected Real Rate of Return %** Public Equity 38 7.0 4.3 Public Fixed Income 27 6.1 3.4 Inflation Sensitive 19 4.8 2.1 Real Estate 8 6.5 3.8 Private Equity/Debt 20 9.5 6.7 Leverage*** (12) 3.7 1.1 Total Core Fund 100 7.5 4.8 Variable Fund Asset U.S. Equities 70 6.5 3.8 International Equities 30 7.4 4.7 Total Variable Fund 100 6.9 4.2 * Asset Allocations are managed within established ranges; target percentages may differ from actual monthly allocations ** New England Pension Consultants' Long-Term U.S. CPI (Inflation) Forecast: 2.6% *** The investment policy used for the Core Fund involves reducing equity exposure by leveraging lower-volatility assets, such as fixed income securities. Currently, an asset allocation target of 12% policy leverage is used subject to an allowable range of up to 20%. 41 DRAFT 06/30/2026 Page 87 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Single Discount Rate A single discount rate of 6.8% was used to measure the total pension liability for the current and prior year. This discount rate is based on the expected rate of return on pension plan investments of 6.8% and a municipal bond rate of 4.08% (Source: "20-Bond GO Index" is the Bond Buyer Index, general obligation, 20 years to maturity, mixed quality as of December 31, 2024. In describing this index, the Bond Buyer notes that the bonds' average quality is roughly equivalent to Moody's Investors Service's Aa2 rating and Standard and Poor's Corp.'s AA.). Because of the unique structure of WRS, the 6.8% expected rate of return implies that a dividend of approximately 1.7% will always be paid. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates 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 (including expected dividends) of current plan members. Therefore, the investment rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Village's Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the Village's proportionate share of the net pension liability (asset) calculated using the discount rate of 6.80%, as well as what the Village's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.80%) or 1-percentage-point higher (7.80%) than the current rate: 1% Decrease to Discount Rate (5.8%) Current Discount Rate (6.8%) 1% Increase to Discount Rate (7.8%) Village's proportionate share of the net pension liability (asset) $ 3,879,871 $ 413,574 $ (2,049,129) Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in separately issued financial statements available at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports- and-statements. At December 31, 2025, the Village reported a payable to the pension plan which represents contractually required contributions outstanding as of the end of the year. Risk Management The Village is exposed to various risks of loss related to torts; theft of, damage to or destruction of assets; errors and omissions; workers compensation; and health care of its employees. All of these risks are covered through the purchase of commercial insurance, with minimal deductibles. Settled claims have not exceeded the commercial coverage in any of the past three years. There were no significant reductions in coverage compared to the prior year.42 DRAFT 06/30/2026 Page 88 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Commitments and Contingencies Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. The Village has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures disallowed under terms of the grants. Management believes such disallowances, if any, would be immaterial. The Village has active construction projects as of December 31, 2025. Work that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. Joint Ventures North Shore Water Commission The Village of Fox Point, City of Glendale and the Village of Whitefish Bay jointly operate the local supply and filtration system, which is called the North Shore Water Commission (NSWC) and provides water supply and filtration. The communities share in the operation proportionately based upon water sold to each participant. The governing body is made up of citizens from each municipality. Local representatives are appointed by the municipalities. The governing body has authority to adopt its own budget and control the financial affairs of the commission. Debt is repaid with resources of the utility and is secured by the assets and revenues of NSWC. The transactions of the Commission are not reflected in these financial statements. $309,330 of operating costs represents the Village's share for the North Shore Water Commission which is expected to continue to provide services in the future at similar rates. Financial information of the North Shore Water Commission as of December 31, 2025 is available directly from the NSWC office. The Village accounts for its share of the operations in the water utility fund. The Village has an equity interest in the NSWC equal to its percentage share of participation. The equity interest is reported in the statement of net position as an asset and the amount of change for the year is reflected on the statement of revenues, expenses and changes in net position. 43 DRAFT 06/30/2026 Page 89 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 North Shore Library The City of Glendale and the Villages of Fox Point, Bayside and River Hills operate the North Shore Library under a Joint Library Agreement dated January 1, 1985. Under the joint agreement, a Joint Library Board is created to operate the North Shore Library. The Joint Library Board is composed of ten members: five members from Glendale, two members each from Fox Point and Bayside, one member from River Hills and the Superintendent of Schools for the Nicolet School District. The Joint Library Board has the powers to repair, maintain and renew physical assets of the library and to prepare and adopt a budget for the library's operating expenses and a budget for the library's capital improvement expenses. The operating budget must be approved by at least three of the four municipalities. In addition, the Joint Library Board has the power to appoint the Library Director and such other assistants and employees as it deems necessary. Operating and capital expenses are shared proportionately based upon population estimates published in October. The Village's share of operations in 2025 was $903,802. The Village believes that the library will continue to provide services in the future at similar rates. The Village does not report an equity interest in the joint venture. North Shore Fire Department By agreement dated December 30, 1994, the North Shore Fire Department (NSFD) was created. The NSFD, which provides a unified integrated fire and emergency medical service, began operations on January 1, 1996. The NSFD was created pursuant to the provisions of Wisconsin Statutes 61.65 and 66.30. Participants are the Village of Fox Point, Village of Shorewood, Village of Brown Deer, Village of River Hills, Village of Whitefish Bay, Village of Bayside and City of Glendale. The North Shore Fire Department furnishes fire and emergency medical services. The North Shore Fire Department (NSFD) is operated by a Board of Directors consisting of seven members which includes the Mayor or Village President of each participating municipality. The affirmative vote of a majority of the members of the Board of Directors is required on most matters. The powers of the Board of Directors include authorizing repair, maintenance and renewal of physical assets and recommending adoption of the department's budget. The capital and operating budget of the department must receive approval of at least five of the seven participating municipalities. Also established by the agreement is a Joint Fire Commission that has the powers related to appointments, promotions, suspensions, removals, dismissals, reemployment, compensation, rest days, etc. The fiscal agent for the North Shore Fire Department is the Village of Brown Deer. The Village's share of operations in 2025 was $1,290,275. The Village does not report an equity interest in this joint venture. Dispatch Services The Village of Fox Point, River Hills and Bayside jointly operate a dispatch service center under a joint service agreement. Under the joint agreement, the Village of Bayside provides dispatch services to the municipalities. The cost of these services is shared between the communities as agreed upon in the individual agreements. A separate board has not been established to govern the dispatch service activities. Changes to the agreements and to the services provided require the approval of all three Village boards. During 2025, the Village's share of operations was $326,974. The Village does not report an equity interest in this joint venture. 44 DRAFT 06/30/2026 Page 90 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Other Postemployment Benefits General Information About the OPEB Plan Plan Description The Village administers a single-employer defined benefit healthcare plan. The plan provides for eligible retirees and their spouses through the Village's healthcare plan which covers both active and retired members. Benefit provisions are established through personnel policy guidelines and collective bargaining agreements. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided The Village makes the same monthly health insurance contribution on behalf of the retiree as it makes on behalf of all other active employees. The Village contributes 25% of the current year premiums until Medicare is available. Plan members receiving benefits contribute 75% of their premium costs. Employees Covered by Benefit Terms At December 31, 2025, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 6 Active plan members 43 Total 49 Total OPEB Liability The Village's total OPEB liability of $380,171 was measured as of December 31, 2024, and was determined by an actuarial valuation as of that date. Actuarial Assumptions and Other Inputs The total OPEB liability in the December 31, 2024 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary increases 4.00% Healthcare cost trend rates 7.00% decreasing to 6.50%, then decreasing by 0.10% per year down to 4.50% and level thereafter The discount rate was based on S&P Municipal Bond 20 Year High Grade Index. Mortality rates were based on the 2020 WRS Experience Tables for Active Employees and Healthy Retirees projected with mortality improvements using the fully generational MP-2021 projection scale from a base year of 2010. The actuarial assumptions used in the December 31, 2024 valuation were based on the results of an actuarial experience study 2018-2020. 45 DRAFT 06/30/2026 Page 91 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Changes in the Total OPEB Liability Total OPEB Liability Balances at December 31, 2024 $ 359,623 Changes for the year: Service cost 25,023 Interest 14,613 Changes in assumptions or other inputs (5,587) Benefit payments (13,501) Net changes 20,548 Balances at December 31, 2025 $ 380,171 Changes of assumptions and other inputs reflect a change in the discount rate from 4.00% in 2023 to 4.28% in 2024. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Village, 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 (3.28%) or 1-percentage-point higher (5.28%) than the current discount rate: 1% Decrease Discount Rate 1% Increase Total OPEB liability $ 404,333 $ 380,171 $ 357,403 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6.5% decreasing to 4.5%) or 1-percentage-point higher (7.5% decreasing to 5.5%) than the current healthcare cost trend rates: 1% Decrease Healthcare Cost Trend Rates 1% Increase Total OPEB liability $ 378,557 $ 380,171 $ 381,521 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2025, the Village recognized OPEB expense of $20,850. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 19,339 $ 38,972 Changes of assumptions or other inputs 31,656 84,711 Total $ 50,995 $ 123,683 46 DRAFT 06/30/2026 Page 92 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Years Ending December 31: Amount 2026 $ (5,285) 2027 (5,285) 2028 (5,285) 2029 (4,180) 2030 (11,697) Thereafter (40,956) Total $ (72,688) Local Retiree Life Insurance Fund (LRLIF) Plan Description The LRLIF is a multiple-employer, defined benefit OPEB plan. LRLIF benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. The Wisconsin Department of Employee Trust Funds (ETF) and the Group Insurance Board have statutory authority for program administration and oversight. The plan provides postemployment life insurance benefits for all eligible members. OPEB Plan Fiduciary Net Position. ETF issues a standalone Annual Comprehensive Financial Report (ACFR), which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and-statements. Additionally, ETF issued a standalone Retiree Life Insurance Financial Report, which can be found at the link above. Benefits Provided The LRLIF plan provides fully paid up life insurance benefits for post-age 64 retired employees and pre-65 retirees who pay for their coverage. Contributions The Group Insurance Board approves contribution rates annually, based on recommendations from the insurance carrier. Recommended rates are based on an annual valuation, taking into consideration an estimate of the present value of future benefits and the present value of future contributions. A portion of employer contributions made during a member's working lifetime funds a postretirement benefit. Employers are required to pay the following contribution based on employee contributions for active members to provide them with Basic Coverage after age 65. There are no employer contributions required for pre-age 65 annuitant coverage. If a member retires prior to age 65, they must continue paying the member premiums until age 65 in order to be eligible for the benefit after age 65. 47 DRAFT 06/30/2026 Page 93 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Contribution rates for the plan year reported as of December 31, 2025 are: Coverage Type Employer Contribution 50% Postretirement Coverage 40% of member contribution 25% Postretirement Coverage 20% of member contribution Member contributions are based upon nine age bands through age 69 and an additional eight age bands for those age 70 and over. Participating members must pay monthly contribution rates per $1,000 of coverage until the age of 65 (age 70 if active). The member contribution rates in effect for the plan year are as listed below: Life Insurance Member Contribution Rates* for the Plan Year Attained Age Basic Supplemental Under 30 $0.05 $0.05 30-34 0.06 0.06 35-39 0.07 0.07 40-44 0.08 0.08 45-49 0.12 0.12 50-54 0.22 0.22 55-59 0.39 0.39 60-64 0.49 0.49 65-69 0.57 0.57 *Disabled members under age 70 receive a waiver-of-premium benefit During the reporting period, the LRLIF recognized $1,099 in contributions from the employer. OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs At December 31, 2025, the Village reported a liability of $204,412 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of December 31, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of January 1, 2024 rolled forward to December 31, 2024. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The Village's proportion of the net OPEB liability was based on the Village's share of contributions to the OPEB plan relative to the contributions of all participating employers. At December 31, 2024, the Village's proportion was 0.05224900%, which was a decrease of 0.00097800% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the Village recognized OPEB expense (revenue) of $6,272. 48 DRAFT 06/30/2026 Page 94 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflow of Resources Deferred Inflows of Resources Differences between expected and actual experience $ - $ 21,266 Net differences between projected and actual earnings on plan investments 2,808 - Changes in actuarial assumptions 50,157 114,650 Changes in proportion and differences between employer contributions and proportionate share of contributions 10,074 16,106 Employer contributions subsequent to the measurement date 1,218 - Total $ 64,257 $ 152,022 $1,218 reported as deferred outflows of resources related to OPEB resulting from the LRLIF Employer's contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Years Ending December 31: Deferred Outflows of Resources and Deferred Inflows of Resources (Net) 2026 $ (10,164) 2027 (20,069) 2028 (22,392) 2029 (22,307) 2030 (6,418) Thereafter (7,633) 49 DRAFT 06/30/2026 Page 95 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Actuarial Assumptions The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: January 1, 2024 Measurement Date of Net OPEB Liability (Asset) December 31, 2024 Experience Study: January 1, 2021-December 31, 2023. Published November 19, 2024 Actuarial Cost Method: Entry Age Normal 20 Year Tax-Exempt Municipal Bond Yield* 4.08% Long-Term Expected Rate of Return: 4.25% Discount Rate: 4.09% Salary Increases: Wage Inflation Seniority/Merit 3.00% 0.10%-5.7% Mortality: 2020 WRS Experience Mortality Table *Based on the Bond Buyers GO 20-Bond Municipal index Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. The Total OPEB Liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the January 1, 2024 actuarial valuation. 50 DRAFT 06/30/2026 Page 96 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Long-Term Expected Return on Plan Assets The long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. Investments for the LRLIF are held with Securian, the insurance carrier. Interest is calculated and credited to the LRLIF based on the rate of return for a segment of the insurance carriers' general fund, specifically 10-year A-Bonds (as a proxy, and not tied to any specific investments). The overall aggregate interest rate is calculated using a tiered approach based on the year the funds were originally invested and the rate of return for that year. Investment interest is credited based on the aggregate rate of return and assets are not adjusted to fair market value. Furthermore, the insurance carrier guarantees the principal amounts of the reserves, including all interest previously credited thereto. State OPEB Life Insurance Asset Allocation Targets and Expected Returns As of December 31, 2024 Asset Class Index Target Allocation Long-Term Expected Geometric Real Rate of Return U.S. Intermediate Credit Bonds Bloomberg U.S. Interm Credit 40.00% 2.41% U.S. Mortgages Bloomberg U.S. MBS 60.00 2.71 Inflation 2.30 Long-Term Expected Rate of Return 4.25 Single Discount Rate A single discount rate of 4.09% was used to measure the total OPEB liability for the current year, as opposed to a discount rate of 3.32% for the prior year. The significant change in the discount rate was primarily caused by the increase in the municipal bond rate from 3.26% as of December 31, 2023 to 4.08% as of December 31, 2024. The Plan's fiduciary net position was projected to be insufficient to make all projected future benefit payments of current active and inactive members. Therefore, the discount rate for calculating the total OPEB liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan's fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payment to the extent that the plan's fiduciary net position is projected to be insufficient. The plan's fiduciary net position was projected to be available to make projected future benefit payments of current plan members through December 31, 2037. The projection of cash flows used to determine the single discount rate assumed that employer contributions will be made according to the current employer contribution schedule and that contributions are made by plan members retiring prior to age 65. 51 DRAFT 06/30/2026 Page 97 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Sensitivity of the Village's Proportionate Share of the Net OPEB Liability (Asset) to Changes in the Discount Rate The following presents the Village's proportionate share of the net OPEB liability (asset) calculated using the discount rate of 4.09%, as well as what the Village's proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%) than the current rate: 1% Decrease to Discount Rate (3.09%) Current Discount Rate (4.09%) 1% Increase to Discount Rate (5.09%) Village's proportionate share of the net OPEB liability (asset) $ 273,225 $ 204,412 $ 151,385 Single-Employer Defined Benefit Pension Plan Plan Description The Village reports a single-employer defined benefit pension plan (the Stipend Plan). Management of the Stipend Plan is vested in the Village Board. No assets have been accumulated in a trust for the payment of these benefits. The plan is administered by the Village and provides active public safety employees that retire on or after January 1, 2022 with a monthly cash benefit ranging from $200 to $375 per month. Benefit provisions are established through agreements approved by the Village Board. At December 31, 2025, the Village plan's membership consisted of: Retirees and beneficiaries 3 Active members 11 Total 14 The Village paid $14,884 for pension benefits as they came due during the reporting period. The Village is funding these benefits on a pay-as-you-go basis. Changes in Total Pension Liability The Village's change in total pension liability for the fiscal year ended December 31, 2025 was as follows: Total Pension Liability Beginning of year balance $ 217,559 Service cost 6,756 Interest on total pension liability 8,541 Changes of assumptions or other input (3,648) Benefit payments (14,884) End of year balance $ 214,324 52 DRAFT 06/30/2026 Page 98 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 Assumptions The total pension liability was determined using the following actuarial assumptions, applied to all periods included in the measurement: Measurement Date: December 31, 2024 Actuarial Valuation Date: December 31, 2025 Inflation: 2.50% Salary Changes: 5.8% down to 0.2% in 30 years; includes merit increases plus inflation Discount Rate: 4.28% Source of Discount Rate: Based upon all years of project payments discounted at a municipal bond rate of 3.50% Source of Mortality Assumptions: 2020 Annual Wisconsin Retirement System (WRS) Report Dates of Experience Studies Experience study conducted in 2021 using WRS experience from 2018-2020 Sensitivity of the Total Pension Liability to Changes in the Discount Rate The following is a sensitivity analysis of the total pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the current discount rate of 4.28% as well as what the total pension liability would be if it were to be calculated using a discount rate that is 1-percentage-point lower (3.28%) or 1-percentage-point higher (5.28%) that the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $ 229,984 $ 214,324 $ 199,906 Pension Expense and Deferred Outflows and Inflows of Resources Related to Pensions For the year ended December 31, 2025, the Village recognized pension expense of $2,896. At December 31, 2025 the Village reported deferred outflows of resources related to pensions from the following source: Deferred Outflow of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 31,389 $ 4,571 Changes in actuarial assumptions 23,370 21,153 Employer contributions subsequent to the measurement date 16,703 - Total $ 71,462 $ 25,724 53 DRAFT 06/30/2026 Page 99 of 114 Village of Fox Point Notes to Financial Statements December 31, 2025 $16,703 reported as deferred outflows of resources related to OPEB resulting from the LRLIF Employer's contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Years Ending December 31: Deferred Outflows of Resources and Deferred Inflows of Resources (Net) 2026 $ 4,302 2027 4,302 2028 4,302 2029 4,302 2030 4,303 Thereafter 7,524 Effect of New Accounting Standards on Current-Period Financial Statements The Governmental Accounting Standards Board (GASB) has approved the following:  Statement No. 103, Financial Reporting Model Improvements  Statement No. 104, Disclosure of Certain Capital Assets  Statement No. 105, Subsequent Events When they become effective, application of these standards may restate portions of these financial statements. 54 DRAFT 06/30/2026 Page 100 of 114 REQUIRED SUPPLEMENTARY INFORMATION DRAFT 06/30/2026 Page 101 of 114 Village of Fox Point Detailed Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Year Ended December 31, 2025 Original and Final Budget Actual Variance With Final Budget Revenues Taxes $ 5,809,765 $ 5,788,851 $ (20,914) Intergovernmental 1,145,527 1,101,404 (44,123) Licenses and permits 125,650 88,064 (37,586) Fines, forfeitures and penalties 92,000 87,722 (4,278) Public charges for services 55,850 33,077 (22,773) Intergovernmental charges for services 110,500 106,200 (4,300) Investment income 300,000 398,452 98,452 Miscellaneous revenues 73,950 103,857 29,907 Total revenues 7,713,242 7,707,627 (5,615) Expenditures Current: General government 1,210,853 1,555,025 (344,172) Public safety 4,455,543 4,273,469 182,074 Public works 1,602,257 1,596,026 6,231 Health and human services 59,969 59,979 (10) Culture, recreation and education 293,367 302,820 (9,453) Conservation and development 61,250 67,877 (6,627) Total expenditures 7,683,239 7,855,196 (171,957) Excess (deficiency) of revenues over (under) expenditures 30,003 (147,569) (177,572) Other Financing Sources (Uses) Transfers in 280,000 338,236 58,236 Transfers out (10,182) (600,442) (590,260) Proceeds from sale of capital assets 1,500 2,023 523 Total other financing sources (uses) 271,318 (260,183) (531,501) Net change in fund balance $ 301,321 (407,752) $ (709,073) Fund Balance, Beginning 4,349,245 Fund Balance, Ending $ 3,941,493 See notes to required supplementary information 55 DRAFT 06/30/2026 Page 102 of 114 Proportionate Plan Fiduciary Proportion Proportionate Share of the Net Net Position WRS of the Net Share of the Pension Liability (Asset) as a Percentage Fiscal Pension Net Pension Covered as a Percentage of the Total Year End Liability (Asset) Liability (Asset) Payroll of Covered Payroll Pension Liability 12/31/15 0.02724353% 442,702$ 3,268,645$ 13.54% 98.20% 12/31/16 0.02669150% 220,002 3,236,140 6.80% 99.12% 12/31/17 0.02708612% (804,219) 3,396,748 23.68% 102.93% 12/31/18 0.02730611% 971,465 3,406,954 28.51% 96.45% 12/31/19 0.02738158% (882,907) 3,403,013 25.94% 102.96% 12/31/20 0.02645525% (1,651,637) 3,132,860 52.72% 105.26% 12/31/21 0.02555658% (2,059,907) 3,181,408 64.75% 106.02% 12/31/22 0.02518733% 1,334,350 3,278,971 40.69% 95.72% 12/31/23 0.02519419% 374,588 3,419,581 10.95% 98.85% 12/31/24 0.02516939% 413,574 3,554,395 11.64% 98.79% Contributions in Relation to the Contributions Village Contractually Contractually Contribution as a Percentage Fiscal Required Required Deficiency Covered of Covered Year End Contributions Contributions (Excess) Payroll Payroll 12/31/16 233,362$ 233,362$ -$ 3,236,140$ 7.21% 12/31/17 268,350 268,350 - 3,396,748 7.90% 12/31/18 272,687 272,687 - 3,406,954 8.00% 12/31/19 265,308 265,308 - 3,403,013 7.80% 12/31/20 294,488 294,488 - 3,132,860 9.40% 12/31/21 292,303 292,303 - 3,181,408 9.19% 12/31/22 299,492 299,492 - 3,278,972 9.13% 12/31/23 336,030 336,030 - 3,419,581 9.83% 12/31/24 364,776 364,776 - 3,554,396 10.26% 12/31/25 386,659 386,659 - 3,661,112 10.56% Village of Fox Point Wisconsin Retirement System Year Ended December 31, 2025 Schedule of Proportionate Share of the Net Pension Liability (Asset) - Year Ended December 31, 2025 Schedule of Employer Contributions - Wisconsin Retirement System See notes to required supplementary information 56 DRAFT 06/30/2026 Page 103 of 114 2025 2024 2023 2022 2021 2020 2019 2018 Total Pension Liability Service cost 6,756 $ 6,515$ 9,014$ 8,958$ 8,008$ 6,323$ 6,683$ 6,683$ Interest 8,541 7,301 4,269 4,293 4,919 5,305 4,635 4,432 Difference between expected and actual experience - 27,350 - - - 19,829 - 125,761 Changes in assumptions (3,648) 12,466 (22,106) (7,619) 6,155 21,587 (4,723) - Benefit payments (14,884) (9,207) (6,571) (6,814) (8,502) (6,777) (5,634) (4,974) Net change in total pension liability (3,235) 44,425 (15,394) (1,182) 10,580 46,267 961 131,902 Total Pension Liability, Beginning 217,559 173,134 188,528 189,710 179,130 132,863 131,902 - Total Pension Liability, Ending 214,324 $ 217,559$ 173,134 $ 188,528 $ 189,710 $ 179,130 $ 132,863 $ 131,902 $ Covered-Employee Payroll 883,710$ 883,710 $ 831,546 $ 831,546 $ 885,477 $ 885,477 $ 774,235 $ 774,235 $ Total Pension Liability as a Percentage of Covered Payroll 24.25% 24.62% 20.82% 22.67% 21.42% 20.23% 17.16% 17.04% Village of Fox Point Year Ended December 31, 2025 Schedule of Changes in the Total Pension Liability and Related Ratios - Supplemental Pension (Stipend) Plan See notes to required supplementary information 57 DRAFT 06/30/2026 Page 104 of 114 2025 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability Service cost 25,023 $ 26,250 $ 33,703 $ 33,559 $ 30,481 $ 18,705 $ 19,418 $ 19,418 $ Interest 14,613 18,244 10,886 11,291 14,286 18,264 16,656 16,876 Difference between expected and actual experience - (47,632) - 23,756 - 12,719 - 486,994 Changes in assumptions (5,587) (28,704) (50,765) (28,806) 13,311 62,506 (11,100) - Benefit payments (13,501) (49,339) (39,967) (75,802) (78,754) (31,622) (56,174) (29,035) Net change in total OPEB liability 20,548 (81,181) (46,143) (36,002) (20,676) 80,572 (31,200) 494,253 Total OPEB Liability, Beginning 359,623 440,804 486,947 522,949 543,625 463,053 494,253 - Total OPEB Liability, Ending 380,171$ 359,623$ 440,804$ 486,947$ 522,949$ 543,625$ 463,053$ 494,253$ Covered-Employee Payroll 3,276,262$ 3,276,262$ 3,057,144$ 3,057,144$ 2,985,665$ 2,985,665$ 2,784,095$ 2,784,095$ Total OPEB Liability as a Percentage of Covered-Employee Payroll 11.60% 10.98% 14.42% 15.93% 17.52% 18.21% 16.63% 17.75% Village of Fox Point Schedule of Changes in the Total OPEB Liability and Related Ratios - Health Insurance Year Ended December 31, 2025 See notes to required supplementary information 58 DRAFT 06/30/2026 Page 105 of 114 Proportionate Share of the Net Plan Fiduciary Proportion Proportionate OPEB Liability Net Position Plan of the Net Share of the as a Percentage as a Percentage Fiscal OPEB Net OPEB Covered of Covered of the Total Year End Liability Liability Payroll Payroll OPEB Liability 12/31/17 0.06120200% 184,131$ 2,573,719$ 7.15% 44.81% 12/31/18 0.05947700% 153,471 2,879,000 5.33% 48.69% 12/31/19 0.06052900% 257,744 2,847,000 9.05% 37.58% 12/31/20 0.04896200% 269,326 2,720,000 9.90% 31.36% 12/31/21 0.05109800% 302,008 2,832,000 10.66% 29.57% 12/31/22 0.05339100% 203,410 2,912,000 6.99% 38.81% 12/31/23 0.05322700% 244,879 2,806,000 8.73% 33.90% 12/31/24 0.05224900% 204,412 2,960,000 6.91% 37.20% Contributions in Relation to the Contributions Village Contractually Contractually Contribution as a Percentage Fiscal Required Required Deficiency Covered of Covered Year End Contributions Contributions (Excess) Payroll Payroll 12/31/18 1,162$ 1,162$ -$ 2,573,719$ 0.05% 12/31/19 1,145 1,145 - 2,879,000 0.04% 12/31/20 965 965 - 2,847,000 0.03% 12/31/21 1,024 1,024 - 2,720,000 0.04% 12/31/22 1,084 1,084 - 2,832,000 0.04% 12/31/23 1,097 1,097 - 2,912,000 0.04% 12/31/24 1,105 1,105 - 3,554,396 0.03% 12/31/25 1,218 1,218 - 3,661,112 0.03% Village of Fox Point Year Ended December 31, 2025 Schedule of Employer Contributions - Local Retiree Life Insurance Fund (LRLIF) Schedule of Proportionate Share of the Net OPEB Liability - Local Retiree Life Insurance Fund (LRLIF) Year Ended December 31, 2025 See notes to required supplementary information 59 DRAFT 06/30/2026 Page 106 of 114 Village of Fox Point Notes to Required Supplementary Information Year Ended December 31, 2025 Budgetary Information Budgetary information is derived from the annual operating budget and is presented using the same basis of accounting for each fund as described in Note 1. The budgeted amounts presented include any amendments made. The Village may authorize transfers of budgeted amounts within departments. Transfers between departments and changes to the overall budget must be approved by a two-thirds action. Appropriations lapse at year end unless specifically carried over. There were no carryovers to the following year. Budgets are adopted at the department level of expenditure. Wisconsin Retirement System The amounts determined for each fiscal year were determined as of the calendar year-end and occurred within the fiscal year. Changes in benefit terms. There were no changes of benefit terms for any participating employer in the Wisconsin Retirement System. Changes in assumptions. Based on a three-year experience study conducted in 2021 covering January 1, 2018 through December 31, 2020, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year-end December 31, 2021, including the following:  Lowering the long-term expected rate of return from 7.0% to 6.8%  Lowering the discount rate from 7.0% to 6.8%  Lowering the price inflation rate from 2.5% to 2.4%  Lowering the postretirement adjustments from 1.9% to 1.7%  Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2018 Mortality Table to the 2020 WRS Experience Mortality Table Based on a three-year experience study conducted in 2018 covering January 1, 2015 through December 31, 2017, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year-ended December 31, 2018, including the following:  Lowering the long-term expected rate of return from 7.2% to 7.0%  Lowering the discount rate from 7.2% to 7.0%  Lowering the wage inflation rate from 3.2% to 3.0%  Lowering the price inflation rate from 2.7% to 2.5%  Lowering the postretirement adjustments from 2.1% to 1.9%  Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table 60 DRAFT 06/30/2026 Page 107 of 114 Village of Fox Point Notes to Required Supplementary Information Year Ended December 31, 2025 Local Retiree Life Insurance Fund The amounts determined for each fiscal year were determined as of the calendar year-end and occurred within the fiscal year. The Village is required to present the last ten years of data; however, accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. Changes in benefit terms. There were no changes of benefit terms for any participating employer in LRLIF. Changes in assumptions. In addition to the rate changes detailed in the tables above, the State of Wisconsin Employee Trust Fund Board adopted economic and demographic assumption changes based on a three year experience study performed for the Wisconsin Retirement System. These assumptions are used in the actuarial valuations of OPEB liabilities (assets) for the retiree life insurance programs and are summarized below. The assumption changes that were used to measure the December 31, 2021 total OPEB liabilities, including the following:  Lowering the price inflation rate from 2.5% to 2.4%  Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2018 Mortality Table to the 2020 WRS Experience Mortality Table The assumption changes that were used to measure the December 31, 2018 total OPEB liabilities, including the following:  Lowering the long-term expected rate of return from 5.00% to 4.25%  Lowering the wage inflation rate from 3.2% to 3.0%  Lowering the price inflation rate from 2.7% to 2.5%  Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table Health Insurance Plan The Village is required to present the last ten years of data; however accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. Changes in benefit terms. There were no changes of benefit terms for the Village. Changes in assumptions: There were no changes in assumptions except that the discount rate changed from 4.00% to 4.28%. Supplemental Pension (Stipend) Plan The Village is required to present the last ten years of data; however accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. Accumulation of assets: No assets have been accumulated in trust that meets the criteria in paragraph 4 of GASB statement No. 73. Changes in benefit terms. There were no changes of benefit terms for the Village. Changes in assumptions: There were no changes in assumptions except that the discount rate changed from 4.00% to 4.28%. 61 DRAFT 06/30/2026 Page 108 of 114 SUPPLEMENTARY INFORMATION DRAFT 06/30/2026 Page 109 of 114 Village of Fox Point Detailed Schedule of Revenues and Other Financing Sources - Budget and Actual - General Fund Year Ended December 31, 2025 Original and Final Budget Actual Variance With Final Budget Taxes General property taxes $ 5,753,265 $ 5,753,265 $ - Payment in lieu of taxes 26,500 23,459 (3,041) Interest and penalties on taxes 30,000 12,127 (17,873) Total taxes 5,809,765 5,788,851 (20,914) Intergovernmental Federal grants 7,200 6,200 (1,000) State shared revenues 329,999 329,946 (53) Spending restraint 49,428 - (49,428) Fire insurance tax from state 50,025 54,267 4,242 State aid, streets 640,513 639,998 (515) State aid, exempt computer aid 29,862 55,351 25,489 Other State grants 38,500 15,642 (22,858) Total intergovernmental 1,145,527 1,101,404 (44,123) Licenses and Permits Beverage licenses 4,000 6,655 2,655 Bicycle licenses 50 10 (40) Pet licenses 1,000 1,722 722 Cable TV franchise fee 84,600 59,279 (25,321) Other permits 36,000 20,398 (15,602) Total licenses and permits 125,650 88,064 (37,586) Fines, Forfeitures and Penalties Court penalties and costs 92,000 87,722 (4,278) Public Charges for Services Miscellaneous service revenues 35,900 12,574 (23,326) Job orders 15,700 14,200 (1,500) Pavilion rental 4,000 6,078 2,078 Fingerprint fee 200 200 - Administrative warrant fee 50 25 (25) Total public charges for services 55,850 33,077 (22,773) Intergovernmental Charges for Services Utility equipment rental 110,500 106,200 (4,300) Investment Income Investment income 300,000 398,452 98,452 62 DRAFT 06/30/2026 Page 110 of 114 Village of Fox Point Detailed Schedule of Revenues and Other Financing Sources - Budget and Actual - General Fund Year Ended December 31, 2025 Original and Final Budget Actual Variance With Final Budget Miscellaneous Revenues Insurance recoveries $ 20,000 $ 42,916 $ 22,916 Miscellaneous revenues 53,950 60,941 6,991 Total miscellaneous revenues 73,950 103,857 29,907 Other Financing Sources Transfer in 280,000 338,236 58,236 Proceeds from sale of capital assets 1,500 2,023 523 Total other financing sources 281,500 340,259 58,759 Total revenues and other financing sources $ 7,994,742 $ 8,047,886 $ 53,144 63 DRAFT 06/30/2026 Page 111 of 114 Village of Fox Point Schedule of Expenditures and Other Financing Uses - Budget and Actual - General Fund Year Ended December 31, 2025 Original and Final Budget Actual Variance With Final Budget General Government Board $ 8,200 $ 8,759 $ (559) Manager 197,576 158,920 38,656 Clerk 195,269 158,720 36,549 Treasurer/financial manager 139,216 137,803 1,413 Elections 28,310 20,327 7,983 Assessor 34,100 35,237 (1,137) Legal 82,000 125,736 (43,736) Judicial 66,770 67,875 (1,105) Municipal court 25,000 26,397 (1,397) General buildings and plant 203,500 521,603 (318,103) Insurance 229,462 286,885 (57,423) Other general government 1,450 6,763 (5,313) Total general government 1,210,853 1,555,025 (344,172) Public Safety Police 3,076,100 2,891,441 184,659 Fire 1,286,033 1,290,275 (4,242) Other public safety and joint charges 92,610 91,003 1,607 Protective inspection 800 750 50 Total public safety 4,455,543 4,273,469 182,074 Public Works Village engineer 117,252 107,125 10,127 Machinery and equipment 174,500 205,339 (30,839) Building and grounds 1,006,725 992,942 13,783 DPW fringe benefits 11,680 18,072 (6,392) Storm sewer maintenance 700 568 132 Highway and streets 68,700 82,185 (13,485) Snow/ice removal 83,000 54,225 28,775 Sanitation 122,100 129,166 (7,066) Traffic control 16,000 5,290 10,710 Job orders 1,600 1,114 486 Total public works 1,602,257 1,596,026 6,231 Health and Human Services Health department and welfare 59,969 59,979 (10) Culture, Recreation and Education Library 260,617 260,617 - Skating rink/shelter 19,800 29,079 (9,279) Parks and recreation 5,750 6,596 (846) Culture and recreation 7,200 6,528 672 Total 293,367 302,820 (9,453) Conservation and Development Forestry 61,250 67,877 (6,627) Other Financing Uses Transfers out 10,182 600,442 (590,260) Total expenditures and other financing uses $ 7,693,421 $ 8,455,638 $ (762,217) 64 DRAFT 06/30/2026 Page 112 of 114 Village of Fox Point Combining Balance Sheet - Nonmajor Governmental Funds December 31, 2025 Special Revenue Funds Recycling Pool Inspection Total Nonmajor Governmental Funds Assets Cash and investments $ 5,461 $ 5,398 $ 227,839 $ 238,698 Receivables: Accounts 36,885 - 500 37,385 Due from other funds 8,662 - - 8,662 Total assets $ 51,008 $ 5,398 $ 228,339 $ 284,745 Liabilities and Fund Balances Liabilities Accounts payable $ 3,791 $ - $ 1,465 $ 5,256 Accrued liabilities 9,833 5,398 4,737 19,968 Deposits - - 45,875 45,875 Total liabilities 13,624 5,398 52,077 71,099 Fund Balances Committed 37,384 - 176,262 213,646 Total fund balances 37,384 - 176,262 213,646 Total liabilities and fund balances $ 51,008 $ 5,398 $ 228,339 $ 284,745 65 DRAFT 06/30/2026 Page 113 of 114 Village of Fox Point Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended December 31, 2025 Special Revenue Funds Recycling Pool Inspection Total Nonmajor Governmental Funds Revenues Intergovernmental $ 58,585 $ - $ - $ 58,585 Licenses and permits - - 208,680 208,680 Public charges for services 190,634 - - 190,634 Miscellaneous revenues - 1,640 - 1,640 Total revenues 249,219 1,640 208,680 459,539 Expenditures Current: Public safety - - 188,694 188,694 Public works 295,467 605 - 296,072 Culture, recreation and education - 113,281 - 113,281 Total expenditures 295,467 113,886 188,694 598,047 Excess (deficiency) of revenues over expenditures (46,248) (112,246) 19,986 (138,508) Other Financing Sources (Uses) Transfers in 10,182 112,246 - 122,428 Transfer out - - (50,000) (50,000) Total other financing sources (uses) 10,182 112,246 (50,000) 72,428 Net change in fund balances (36,066) - (30,014) (66,080) Fund Balances, Beginning 73,450 - 206,276 279,726 Fund Balances, Ending $ 37,384 $ - $ 176,262 $ 213,646 66 DRAFT 06/30/2026 Page 114 of 114