20260812 Village Board Packet

Original Post Date: Aug. 7, 2026 Village of Somers 7511 12th Street Somers, WI 53171 Village Board Meeting Agenda Wednesday, Aug. 12, 2026 5:30 p.m. Village Board Meeting: Item # 1 Call to order 2 Pledge of Allegiance 3 Consent and Approval of Minutes of Regular meetings on July 14, 2026, Special Meeting Minutes on July 14 and 21, 2026, Vouchers dated July 16, 23, 30 and August 6th, July ACH Payments, July Building Report, June Investment Statements 4 Correspondence: Department of Transportation Proclamation for Crash Responder Week 5 President and Trustee Comments 6 Citizens Comments 7 Motion to approve proposed Resolution # 2026- 020, a Resolution of the Somers Village Board of Trustees approving the installation of a bench and little library on the playground at Veteran’s Memorial Park 8 Receive and file the 2025 Audit 9 Motion to approve Payne and Dolan’s request for first payment in the amount of $537,330.44 for the 2026 Paving Project in the Valley View subdivision and Change Order #1 request in the amount of $2,167 10 Motion to approve proposed Resolution # 2026-019, 2026 Budget Amendment, due to acceptance of the FEMA SAFER Grant. The grant was formally accepted in May 2026. 11 Motion to approve lab costs and testing by Eurofins SF Analytics Laboratory for possible municipal water contamination investigation related to fire response at 16th Place in the amount of $13,800 12 Motion to approve order of 2027 Western Star Tandem Axel Patrol Truck from Truck Country in the amount of $155,484 to be paid in 2027 13 Motion to approve proposed Ordinance 2026-009, Contractor Qualification Requirements 1/289 Original Post Date: Aug. 7, 2026 14 Motion to approve proposed Ordinance 2026-010 to Amend Section 12.04 Penalties, and Create Section 12.16 Mobile Temporary Food Vendors 15 Action on Animal Sheltering Agreement with the Wisconsin Humane Society 16 Motion to adopt proposed Resolution # 2026-018 to create Village of Somers Ward 14 and assign thereto the Territory attached per Ordinance #2026-008. For information purposes, this is for the annexation of parcel #45-4-221-241- 0102 (Truck Country of Wisconsin) 17 Motion to approve application for the Class “B” (Picnic) Beer License and Temporary “Class B” Wine from Friends of Hawthorn Hollow DBA Hawthorn Hollow Nature Sanctuary & Arboretum for their Walk in the Woods Art Fair on September 12th from 10 to 4 p.m., their Gala Under the stars form 6 to 9 p.m. and their Spooky Hollow Night 1 and 2 on October 23rd and 24th from 6 to 9 p.m. Located at 880 Green Bay Road, Kenosha, Wisconsin 53144, and requests to waive fees. 18 Action on Operator’s Licenses: Madison Laplant, Ashley Majors, Linda Olson, Amy Richards, Amanda Rodriguez, Donovan Sanchez 19 Motion to convene in closed session per WI Statute 19.85(1)(c) Considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility, specifically the Clerk-Treasurer 20 Motion to reconvene into open session 21 The Board reserves the right to take action on the items discussed in Closed Sessions 22 Adjourn I hereby certify that as the designee of the chief elected official of the Village of Somers, I posted this notice of August 12, 2026 Village Board Meeting in 1 public place & on the Village website. Dated this 7th day of August 2026 Wendy Burnette , Clerk-Treasurer Requests from person with disabilities who need assistance to participate in this meeting should be made to the Clerk’s Offic e at 262- 859-2822 with as much notice as possible. Notice is hereby given that members of the Village Board may participate telephonically. Notice is hereby given that members of the Town Board may be in attendance for the sole purpose of gathering information. A quorum may be present. However, no Board action will be taken. 2/289 Village of Somers Proceedings from the Regular Board July 14, 2026 President Stoner called the meeting to order at 5:30 p.m. President Stoner led the Pledge of Allegiance. Present: President Stoner, Trustees Ben Harbach, Jack Aupperle, Joe Smith, Jackie Nelson, Scott Fredrick, and Karl Ostby. Also present: Administrator Jim Hurley, Assistant Administrator Kevin Poirier and Chief Andersen. Consent and Approval of Minutes of Regular meetings on June 23, Vouchers dated June 25, July 1 and July 9, & June ACH Payments, May Investment Statements Trustee Aupperle moved to approve Minutes of Regular meetings on June 23, Vouchers dated June 25, July 1 and July 9, & June ACH Payments, May Investment Statements Seconded by Trustee Fredrick Motion carried. 7-0 vote Correspondence: Notice of Public Hearing for Red Oak Ridge Energy Center LLC for a Certificate of Public Convenience and Necessity to Construct and Operate a Large Electric Generating Facility and Associated Project Facilities Capable of Generating Up to 1,210 MW in the Town of Paris, Kenosha County, Wisconsin Citizens’ Comments: Lisa Hirsch 8226 12 th Street Ms. Hirsch questioned the Village's revenues and expenses, stating that she believed all financial information should be reviewed before any decisions are made. She expressed concern that the proposed increase to $7.31 was being rushed and noted that she had only heard discussion regarding increasing revenues, not reducing expenses. She asked whether the Village could provide a breakdown of any departmental shortfalls, explaining that understanding which departments were affected would be helpful. She also expressed concern about transferring funds between accounts, stating that revenues and expenses should remain within their respective operating funds rather than using funds from other areas. Ms. Hirsch acknowledged that this information may have already been presented and apologized if she had missed it. She also questioned why the meetings were scheduled for 4:00 p.m., stating that the meeting time may make it difficult for working residents to attend. Administrator Hurley reminded those in attendance that the Board does not engage in dialogue with speakers during the public comment period. Public comments are received and may be taken into consideration, but Board members do not respond directly to comments or questions at that time. 3/289 Ted Gement, Golden Oil Company, 1170 22nd Avenue, Mr. Gement spoke regarding the company's property at the corner of Highway E and 31st Avenue. He stated that when Golden Oil purchased the property, the building had been vacant and in poor condition for several years. He explained that the company demolished the building, removed the fuel islands and fencing, and incurred costs exceeding $30,000 to clean up the site. Mr. Gement stated that the Village has since required the property to be maintained, including regular mowing and cleanup of storm debris, resulting in additional expenses. He expressed concern that he did not believe similar maintenance expectations were being applied consistently to other properties in the community and felt the requirements were unfair. He noted that Golden Oil had set the property back farther from the roadway than many other properties and stated that he felt the expectation to maintain it to a park-like standard was unreasonable. He concluded by stating that Board members were welcome to contact him if they wished to discuss the matter further. Gregg Sinnen, 750 Green Bay Road, Mr. Sinnen commented on the Village's financial discussions and stated that, regardless of the funding mechanism, taxpayers ultimately bear the cost of Village services. He expressed support for the proposed fire protection charge, stating that it distributes costs more equitably because all property owners benefit from fire protection services, including those not connected to the municipal water system. He noted that while the proposed fee would not fully resolve the utility's financial challenges, he believed it was a fair starting point and acknowledged that rising costs require corresponding revenue increases. Mr. Sinnen encouraged the Board to make timely decisions regarding the Payment in Lieu of Taxes (PILOT) program, the Public Service Commission (PSC) rate case, and fire protection charges, noting that Village staff and Ellers had already invested significant time and resources into preparing the rate case. He expressed concern about delaying the process and recommended allowing the rate case to proceed so that the Village could review the resulting financial information. He stated that other budget matters, such as recycling costs, should be addressed separately from the utility rate case. Mr. Sinnen also encouraged the Board to carefully evaluate the timing of closing Tax Incremental District (TID) No. 2, noting the financial implications for both the Village and other taxing jurisdictions. He concluded by stating that budgeting requires balancing revenues and expenditures and reiterated that, regardless of the approach taken, taxpayers ultimately pay the costs of Village operations. He thanked the Board members for their service. President and Trustee Comments Trustee Fredrick commented on the condition of Highway 31 following recent repairs to areas that had heavily during the extreme heat. He stated that he believed the temporary asphalt repairs were unacceptable, noting that they created a rough driving surface, and asked what the County's long-term plan is to permanently address the roadway. 4/289 Trustee Fredrick also apologized for missing the Special Board meeting held at 4:00 p.m., explaining that he was unable to attend due to his full-time work schedule. Trustee Harbach thanked the Fire Department, Police Department, Public Works Department, Clerical staff, and Shoreland Lutheran High School for their efforts in helping with the parade and expressed appreciation for everyone's contributions to making the event safe and enjoyable. Trustee Smith apologized for missing the Special Board meeting. Motion to adopt ordinance #2026-008 approving Truck Country of Wisconsin’s Request for Annexation of parcel 45-4-221-241-0102, located at 1914 120th Avenue, into the Village of Somers Trustee Nelson moved to approve ordinance #2026-008 approving Truck Country of Wisconsin’s Request for Annexation of parcel 45-4-221-241-0102, located at 1914 120th Avenue, into the Village of Somers Seconded by Trustee Ostby President Stoner asked about the permitting process and the project's status. Administrator Hurly stated that the utility extension under the interstate is currently under review and that Village staff and the project engineer continue to work through the process. He noted that additional details on the current stage of permitting could be provided by the applicant. Chris Helle, Director of Facilities for McCoy Group Truck Country Wisconsin, stated that the project plans are being finalized, including utility extensions and the development agreement. He explained that the goal is to begin site grading in the fourth quarter of 2026, with building construction occurring during the first and second quarters of 2027 and project completion anticipated in 2028. He noted that permit applications will be submitted as the project plans are finalized and confirmed that Pinnacle Engineering is serving as the project's engineering consultant. President Stoner asked about the sequence of the zoning and annexation process. Mr. Helle explained that, under the purchase agreement, the property first needed to be rezoned before the sale could proceed. He stated that the property owners did not wish to annex the property prior to the sale, resulting in the zoning process occurring before annexation. He noted that the Village worked with the project team to complete the necessary steps. President Stoner welcomed the project to the Village, and Mr. Helle expressed appreciation and stated that McCoy Group Truck Country looks forward to moving the project forward. Motion carried. 7-0 vote Motion to approve the third payment to PTS Contractors, Inc., for work performed on the 12th Street Water Main Project in the amount of $968,769.81 5/289 Trustee Aupperle moved to approve third payment to PTS Contractors, Inc., for work performed on the 12th Street Water Main Project in the amount of $968,769.81 Seconded by Trustee Ostby President Stoner asked when the paving of 12th Street will be completed. Motion carried. 7-0 vote Motion to approve the social media Policy for the Village of Somers Trustee Aupperle moved approve the social media Policy for the Village of Somers Seconded by Trustee Ostby Assistant Administrator Poirier presented the proposed social media Policy and discussed the creation of an official Village Facebook page. He explained that the page would be used to provide residents with important updates, including emergency notifications, infrastructure projects, and other Village information. The page would be informational only and not intended for public discussions or questions. Village Administrator Hurley would oversee the account and manage access for designated staff members, including Public Works personnel, to allow timely updates when needed. The Fire Department’s existing Facebook page would remain separate, with information shared between pages when appropriate. Board members expressed support for the idea and noted the success of the Fire Department’s social media communications. Trustee Smith suggested including a notice in the Village newsletter encouraging residents to join. Motion carried. 7-0 vote Motion to approve the purchase of ambulance in an amount not to exceed $464,939 Trustee Ostby move to approve the purchase of ambulance in an amount not to exceed $464,939 Seconded by Trustee Nelson Motion carried. 7-0 vote Motion to approve the Second Amendment to the Shoreland Lutheran High School Developer Agreement Trustee Harbach moved to approve the Second Amendment to the Shoreland Lutheran High School Developer Agreement Seconded by Trustee Fredrick Motion carried. 7-0 vote 6/289 Motion to approve a Special Event Permit from Snap-on, Inc, for their Company Picnic on July 25, 2026, at Hawthorn Hollow located at 880 Green Bay Road, Kenosha Wi 53144 Trustee Nelson moved to approve a Special Event Permit from Snap-on, Inc, for their Company Picnic on July 25, 2026, at Hawthorn Hollow located at 880 Green Bay Road, Kenosha Wi 53144 Seconded by Trustee Ostby Motion carried. 7- 0 Vot e Action on Operator’s Licenses: Marco Black, Madison Bowman, Magaly Chairez, Emmett Craig, Jennifer Davis, Rylie Davis, Theodore Gement, Madison Laplant, Ashley Majors, Alexander Moreno, Linda Olson, Amy Richards, Donovan Sanchez Trustee Harbach moved to approve Operator’s Licenses: Marco Black, Madison Bowman, Magaly Chairez, Emmett Craig, Jennifer Davis, Rylie Davis, Theodore Gement, Madison Laplant, Ashley Majors, Alexander Moreno, Linda Olson, Amy Richards, Donovan Sanchez, Seconded by Trustee Fredrick Motion carried. 7-0 vote Motion to convene in closed session per WI Statute 19.85(1)(c) Considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility, specifically Firefighter/EMT Local 4831-IAFF grievance Trustee Nelson moved to approve. Seconded by Trustee Aupperle Trustee Fredrick Aye, Trustee Nelson Aye, Trustee Aupperle Aye, President Stoner Aye, Trustee Ostby Aye, Trustee Harbach Aye, Trustee Smith Aye Motion carried. 7-0 vote Motion to convene into open session Trustee Fredrick Aye, Trustee Nelson Aye, Trustee Aupperle Aye, President Stoner Aye, Trustee Ostby Aye, Trustee Harbach Aye, Trustee Smith Aye Motion carried. 7-0 vote President Stoner made a motion to Adjourn at 6:20pm 7/289 8/289 Village of Somers Special Board Meeting July 14, 2026 President Stoner called the meeting to order at 4:00pm President Stoner led the Pledge of Allegiance. Present: President Stoner, Trustees Ben Harbach , Karl Ostby, Jackie Nelson , and Jack Aupperle. Trustee Fredrick and Trustee Smith were excused. Also present: Administrator Jim Hurley and Assistant to the Administrator Kevin Poirier, Review and discuss the financial management plan. No action will be taken. Administrator Hurley presented the financial management plan and reviewed the available options. The Board discussed the various approaches and considerations associated with each option. Possible action on the submission of the Public Services Commission (PSC) Rate Case application: a) Payment in Lieu of Taxes (PILOT) fee b) Conversion to a direct public fire protection fee Trustee Harbach made a motion to table the submission of the Public Services Commission (PSC) Rate Case application: a) Payment in Lieu of Taxes (PILOT) fee b) Conversion to a direct public fire protection fee Action item was tabled until July 21, 2026 Seconded by Trustee Nelson Motion carried. 5-0 vote Review and consider possible action on funding options for the Pike Creek Lift Station upgrades and vault pit on Highway E and 39th Avenue through TID funds Trustee Ostby made a motion to direct staff to prepare a proposal for funding the Pike Creek Lift Station upgrades and vault pit on Highway E and 39 th Avenue using TID funds as outlined in the final 958,000 to be determined by either sewer funds or general debt obligations. Trustee Nelson moved to approve Trustee Harbach asked if the estimate was close to actual cost. It was indicated that it was. Seconded by Trustee Harbach Motion carried. 5-0 vote 9/289 Adjourn Trustee Harbach moved to Adjourn at 5:08 pm. Seconded by Trus tee Nelson. Motion carried. 5-0 vote Drafted this 27th day of July 2026 by Wendy Burnette Clerk/Treasurer These minutes are not official until approved by the Village Board. 10/289 Village of Somers Special Board Meeting July 21, 2026 President Stoner called the meeting to order at 4:30pm President Stoner led the Pledge of Allegiance. Present: President Stoner, Trustees Ben Harbach, Karl Ostby, Jackie Nelson, Jack Aupperle and Trustee Smith. Trustee Fredrick was excused. Also present: Administrator Jim Hurley, Assistant to the Administrator Kevin Poirier, and Clerk/Treasurer Wendy Burnette. Citizen Comments None Review and discuss the financial management plan. Administrator Hurley explained that the Board's discussion was to determine whether to submit an application to the Public Service Commission (PSC) for a Payment in Lieu of Taxes (PILOT) fee and a Public Fire Protection Conversion fee. He emphasized that submitting the application would not constitute final approval, as the PSC review process would take approximately six months and the Village would have an opportunity to decide whether to proceed after reviewing the PSC's financial analysis in approximately three months. Administrator Hurley stated that any potential revenue from the proposed fees could not be included in the upcoming budget due to the uncertainty of PSC approval. He reviewed several PILOT fee options, including the maximum allowable amount, a reduced amount, and an alternative formula based on eligible properties. He also explained the proposed Public Fire Protection Conversion, which would shift the remaining levy- supported fire protection costs to a direct utility fee, creating additional levy capacity. Estimated impacts for both water users and non-water users were presented, and questions regarding billing methods were addressed. Board members discussed the proposed fees and expressed general support for the Public Fire Protection Conversion, noting that all property owners benefit from fire protection services. Several Trustees raised concerns about the PILOT fee, stating that it would apply only to water utility customers rather than all Village residents. Suggestions were made to consider alternative revenue sources, such as garbage or recycling fees, that would distribute costs more equitably. President Stoner expressed concerns regarding the proposed Payment in Lieu of Taxes (PILOT) fee, stating that he believed the original intent of the program was to create equity between public and private utility taxation, rather than to generate revenue for general municipal operations. He stated that he was concerned the proposed fee would shift additional costs to water utility customers, resulting in significant increases to water bills while customers were also paying for recent and future water utility infrastructure improvements. President Stoner indicated he could not support the proposed PILOT fee under those circumstances. 11/289 President Stoner stated that he was more supportive of the proposed Public Fire Protection Conversion because it would distribute the cost more broadly among property owners. He also questioned whether properties located within the Town would be subject to the proposed fire protection fee. Trustee Nelson stated that she did not believe the Board had overspent, but rather that the Village's limited revenue growth under levy limits has not kept pace with increasing costs such as insurance, labor, and pension expenses. Trustee Ostby stated that he believed the Village remained in a stable financial position over the next several years despite future financial challenges. He explained that the purpose of exploring the proposed fees was to identify alternatives to the levy limits that could provide additional revenue while potentially reducing reliance on the property tax levy. He added that implementing alternative funding sources could allow the Village to lessen its reliance on the tax levy rather than simply adding new costs to taxpayers. He acknowledged President Stoner's suggestion of exploring employee insurance changes as a potential cost -saving measure but noted that the estimated savings of approximately $20,000 to $50,000 would not be sufficient to address the Village's long-term financial needs. He stated that while the Village should continue evaluating cost-saving opportunities, he believed it was equally important to pursue alternative revenue sources outside of the levy limits. Possible action on the submission of the Public Services Commission (PSC) Rate Case application: a) Payment in Lieu of Taxes (PILOT) fee b) Conversion to a direct public fire protection fee Trustee Ostby made a motion to direct Ellers to include the Public Fire Protection Conversion fee in the Public Service Commission rate case application. The proposed fee would apply to all Village properties, including non- water customers and adjoining properties where applicable, and, if permitted, include eligible Town properties as part of the application. Seconded by Trustee Harbach Motion carried. 7- 0 Vote Adjourn Trustee Harbach moved to Adjourn at 5:02 pm. Seconded by Trus tee Nelson. Motion carried. 7-0 vote Drafted this 29th day of July 2026 by Wendy Burnette Clerk/Treasurer These minutes are not official until approved by the Village Board. 12/289 13/289 14/289 15/289 16/289 DATE CHECK# PAYABLE TO AMOUNT 7/2/2026 ACH PNP BILLPAYMENT 73.60$ 7/7/2026 ACH PNP BILLPAYMENT 259.05$ 7/7/2026 ACH PNP BILLPAYMENT 319.77$ 7/9/2026 ACH PNP BILLPAYMENT 1,244.30$ 7/10/2026 ACH SOMERS PAYROLL 90,104.37$ 7/10/2026 EFT1486 INTERNAL REVENUE SERVICE 32,227.34$ 7/10/2026 EFT1487 WI DEPT. OF REVENUE 5,360.61$ 7/10/2026 EFT1488 IL DEPT OF REVENUE 222.21$ 7/10/2026 EFT1489 WI SCTF 219.23$ 7/10/2026 EFT1490 SOMERS FIRE FIGHTERS 700.00$ 7/10/2026 EFT1491 WISCONSIN DEFERRED COMP 2,947.95$ 7/10/2026 EFT1492 EMPLOYEE TRUST FUNDS 65,091.98$ 7/10/2026 EFT1493 METLIFE VISION 165.28$ 7/10/2026 66423 BRIGHTHOUSE FINANCIAL 215.00$ 7/10/2026 66446 SECURIAN FINANCIAL GROUP, INC 986.99$ 7/10/2026 66447 SECURIAN FINANCIAL GROUP, INC 73.48$ 7/13/2026 ACH ANALYSIS LOSS FEE/MISC FEE 469.51$ 7/13/2026 ACH DEPOSIT ITEM RTN'D CK# 5088 264.87$ 7/21/2026 ACH PNP BILLPAYMENT 900.00$ 7/22/2026 ACH PNP BILLPAYMENT 124.00$ 7/24/2026 ACH DEBIT MEMO CK#8508136323 125.99 S/B 125.59 0.40$ 7/24/2026 ACH SOMERS PAYROLL 82,695.19$ 7/24/2026 EFT1494 INTERNAL REVENUE SERVICE 29,187.32$ 7/24/2026 EFT1495 WI DEPT. OF REVENUE 4,753.27$ 7/24/2026 EFT1496 IL DEPT OF REVENUE 222.21$ 7/24/2026 EFT1497 DELTA DENTAL 3,706.88$ 7/24/2026 EFT1498 AFLAC INSURANCE 212.80$ 7/24/2026 EFT1499 WISCONSIN DEFERRED COMP 2,960.06$ 7/24/2026 EFT1500 WI SCTF 219.23$ 7/24/2026 EFT1501 SOMERS FIRE FIGHTERS 650.00$ 7/24/2026 EFT1502 WI EMPLOYEE TRUST FUNDS 42,177.02$ 7/24/2026 EFT1503 DELTA DENTAL 302.50$ 7/24/2026 EFT1504 LIBERTY NATIONAL 1,406.96$ 7/24/2026 66467 BRIGHTHOUSE FINANCIAL 215.00$ 7/29/2026 ACH PNP BILLPAYMENT 329.20$ 7/30/2026 ACH DEPOSIT ITEM RTN'D CK# 3585 611.00$ 371,618.58$ Village of Somers ACH payments and checks from Payroll system during the month of July 2026 17/289 July 2026 Building Permit Report Permit Types July YTD Above Ground Pool 2 2 Accessory Buildings 4 13 Addition 0 2 Alterations 2 20 Commercial 0 3 Deck 2 7 Driveway Approach / Culvert 0 4 Dumpster 3 10 Electrical 11 59 Fence 2 20 Garage 1 6 In Ground Pool 0 1 Foundation Repairs 0 1 Land Disturbance 2 5 Mechanical 4 42 New House 0 2 Occupancy 0 1 Other 0 1 Plumbing 8 43 Residential Solar 0 1 Razing 1 3 Roofing 4 37 Service 0 1 Siding 0 3 Sign 1 4 New Single Family 0 1 Work in the Right of Way 4 15 18/289 Total 51 307 Total Revenue 29,205.50$ 169,181.70$ 2025 Revenue 11,637.76$ 92,632.09$ 19/289 2026 VILLAGE OF SOMERS MONTHLY INVESTMENT INCOME JUNE STATE BANK (WIN TRUST) SCHWAB EHLERS LGIP-V LGIP-T TRI-CITY JOHNSON BANK (CD ONLY) TOTALS JUNE EHLERS YEAR TO DATE INTEREST 15,253.87$ 400.08$ 400.94$ 25,369.90$ 2,252.89$ 32,725.55$ -$ 76,403.23$ FEES 33.18$ 413.34$ TOTAL INCOME 15,253.87$ 400.08$ 400.94$ 25,369.90$ 2,252.89$ 32,725.55$ -$ 76,403.23$ 33.18$ 413.34 JUNE STATE BANK (WIN TRUST) SCHWAB EHLERS LGIP-V LGIP-T TRI-CITY JOHNSON BANK (CD ONLY) TOTALS JUNE EHLERS- BORROWING ENDING BALANCES 5,078,342.99$ 4,936,588.01$ 156,986.53$ 8,439,903.87$ 751,805.89$ 9,433,391.82$ 3,000,000.00$ 31,797,019.11$ ACCRUED INTEREST 64,743.83$ *3 CD's-Cell Tower $540,000 5/13/26 JUNE STATE BANK (WIN TRUST) SCHWAB EHLERS LGIP-V LGIP-T TRI-CITY JOHNSON BANK (CD ONLY) INTEREST RATE 3.83% 3.82%-Average 3.11% 3.67% 3.67% 3.625% 3.95% JUNE STATE BANK (WIN TRUST) SCHWAB EHLERS LGIP-V LGIP-T TRI-CITY TOTALS PROJECTED FOR YEAR END Year to date GF 30,279.87$ 19,160.37$ -$ Included in Tri- City total. 13,360.98$ 173,734.65$ 236,535.87$ 420,000.00$ Year to date all Funds 78,242.57$ 49,509.99$ 2,676.46$ $ 155,494.23 13,360.98$ 304,742.14$ 604,026.37$ 900,000.00$ GF INTEREST PERCENTAGE 38.70% 38.70% Included in Tri- City Interest 100% 38% 39% LGIP = Local Government Investment Pool V = Village T = Town Ehlers= 2023 borrowing for CIP GF = General Fund 20/289 WHEREAS, the TIME Coalition is a unified group of associations, organizations, and supporters of responders to traffic incidents with a common goal to enhance the safety of all responders. The Coalition believes that through outreach and education, they can improve the safety, knowledge and mobility of the motoring public on all roadways in Wisconsin; and WHEREAS, each year, Crash Responder Safety Week is set aside to recognize the often lifesaving work of our crash responders. This year’s theme is “Move Over or Slow Down, Lives Are on the Line”; and WHEREAS, all drivers on Wisconsin roadways have a responsibility to follow the laws (Move Over or Slow Down law- Stat. 346.072 and Wisconsin Act 115 – Banning Cell Phone Use in an Emergency Response Area) and take every precaution necessary to reduce the risk of secondary crashes; and WHEREAS, in 2025, in Wisconsin emergency responders responded to over 128,000 traffic crashes. Of those, 2068 crashes occurred in work zones, resulting in 620 injuries and 7 fatalities; and WHEREAS, in 2025 a total of 36 first responders across the United States have been lost due to struck-by-incidents on our roadways; and WHEREAS, our first responders play a key role in keeping our roadways and communities safe; let’s do our part to keep them safe as well; and WHEREAS, this week, the Wisconsin TIME Coalition joins the Wisconsin Department of Transportation recognizing the need for public awareness and acknowledgment that we are all responsible for preventing secondary crashes that endanger the lives of our dedicated emergency personnel; and NOW THEREFORE, the Wisconsin TIME Coalition, does hereby proclaim the week of November 2 through November 6, 2026, to be CRASH RESPONDER SAFETY WEEK Federal Highway Administration Law Enforcement Training Officer’s Association of Wisconsin Wisconsin State Patrol Wisconsin Air Medical Council Wisconsin Chiefs of Police Association Wisconsin Coroners and Medical Examiners Association Wisconsin County Highway Association Wisconsin Department of Justice Training and Standards Bureau Wisconsin Department of Transportation Wisconsin EMS Association Wisconsin Insurance Alliance Wisconsin Motor Carriers Association Wisconsin Professional Police Association Wisconsin Sheriff’s and Deputy Sheriff’s Association Wisconsin State Fire Chief’s Association Wisconsin State Firefighters’ Association Wisconsin Towing Association American Automobile Association Canadian National Railroad Police Cities & Villages Mutual Insurance Company Wisconsin Traffic Safety Officers Association Wisconsin Public Safety Communications American Public Works Association - Wisconsin Chapter PROCLAMATION Stephanie Pederson Stephanie Pederson Chair, TIME Coalition Becky Smudde Becky Smudde Vice Chair, TIME Coalition 21/289 22/289 23/289 24/289 Bailey’s Buddy Bench Proposal July 2026 Presented by Kirsten McCollum Community Connection: Bailey McCollum was a member of the Somers Community his entire life. His grandparents, Ann and Jim Mikutis moved out to Country Charms Estates in 1986. His dad and I, Larry and Kirsten McCollum moved out to the same subdivision in 2002. Our families enjoyed the quiet of Somers and the kind neighbors and community. Bailey and his siblings, Madison and Waverly loved being involved in Somers Softball and T-ball leagues every summer and looked forward to going to the Fourth of July parade and getting candy. Bailey couldn’t wait to go to the “blue school”, Somers Elementary and was so excited to ride a school bus, just like his big sister Waverly had. Bailey’s first day of kindergarten was filled with excitement and joy. He made new friends and loved his teacher, Mrs. Frost. His dad would take him to the corner to wait for the bus, and his sister, Madison would be waiting when he came home. The first days of kindergarten he came home with new projects and books from his school library, which he thought was so cool. On October 8, 2013, Waverly and I headed out, Bailey ran out of the door and shouted, “Wait!, once last kissey mom!” After the kiss he waved to us both and went back in. Upon getting off the bus that afternoon, he had some goldfish crackers for his snack and then his sister, Madison took him to Pets to play in the parks. They had a blast! He played at two parks, hung out on the bridge and watched the fish and collected leaves. It was a wonderful afternoon. On their way home, as they approached the intersection of Hwy E and Hwy EA, they were hit by a drunk driver who was driving on the wrong side of his lane, going at an enormous speed. He ran his stop sign, hitting the driver’s side of the Toyota Sienna. The van rolled three times and ended up in the grassy area on the corner. Madison was injured and went in and out of consciousness while giving my phone number to a stranger who came to help. I received a phone call from that stranger, and as I got into the car where Larry and Waverly were waiting, I told them about the accident. Larry drove over and when we arrived we saw first responders and neighbors crowding the entire area. Larry and I ran over, stating we were the parents. After what seemed like hours of asking us questions, but in reality, a few minutes, we were finally told that our boy had died in the accident, and that Madison was in the ambulance. We were in shock. I went into autopilot, as we went back to the car to tell Waverly and then I got into the ambulance with Madison, who looked terrified. Upon asking about her brother, which was her only concern, I said we had to get her taken care of first. She ended up getting transported to Froedert in Milwaukee. She was very bruised and had glass in her head from the window, and a lacerated liver. She did heal and was able to come home in a couple days. 25/289 Throughout this entire tragedy, our family held close to our faith and our love and memories of Bailey. We appreciated having him in our lives, period! He was joy and light, full of energy, and loaded with questions. He loved nature, all of it, worms, bugs, leaves with holes and playing in the dirt. He was kind to his classmates and he was the kid who noticed if someone was being left out, and invited them to play. He truly had a heart that gave and gave. After he died we created Bailey’s Heartprints in his honor. It started out with kindness cards to give out and encourage others to pass on kindness, one act at a time. Then we created scholarships for students in KUSD theater, as that was a passion for his sisters and he went to all the shows and loved it! As time moved along, we found that Bailey’s Heartprint Heroes and Buddy Benches were a better fit to carry his legacy. Heartprint Heroes is a program where kids track their acts of kindness over a period of time and turn in the tracker to receive a Heartprint Hero certificate. I went to schools and told Bailey’s story and then handed these out and later returned to give out certificates. At Somers Elementary we even had the kids sing with Anna and Elsa, as a little congratulations on becoming Heartprint Heroes. I saw an article on buddy benches in one of my teacher publications and thought this would be a fantastic way to give back to the community and encourage kids to be kind. We started with two Bailey’s Buddy Benches at Somers Elementary, since that is where he went to school and it is our community school. What is a Buddy Bench? The buddy bench concept originated by a child in Germany, and a student in Pennsylvania was inspired by what he saw in Germany and started the concept in the United States in 2013. The buddy bench is a place where students can sit when they are feeling lonely and this signals other kids to come and ask them to play. There are over 2,000 benches found on playgrounds and parks across the United States. According to the buddy bench project, buddy benches: Stop Loneliness: Gives a clear place for children who feel left out or shy to go instead of hiding or staying isolated. Teaches Empathy: Encourages other kids to watch out for peers, care about how others feel, and show kindness. Builds Friendships: Helps children practice how to walk up to someone new, start a talk, and invite them into a game. Lowers Bullying: Makes the playground a safer, more welcoming place where everyone belongs and antisocial actions go down. 26/289 Bailey’s Buddy Bench Specs: ● 11 Gauge perforated steel seat and back, 11 ½” wide ● Black powder coated galvanized steel 2 ⅜” tubular legs ● Thermoplastic finish ● 6 ft. long ● Purchased from Recreation Today, Commercial Playground Provider ● Will be delivered directly to Town Hall Proposal Part 1: Bailey’s Buddy Bench I am proposing that the Somers board members approve the donation of a Bailey’s Buddy Bench to be placed in Somers Memorial Park at the South end of the playground. The Village will incur no cost for the bench. The bench will be staked into the ground, but will be moveable. It will be placed under the pavilion in the winter and placed back onto the playground in the spring. It will be near playground equipment but also near the soccer fields that are utilized by numerous children who will be able to utilize the bench. Many children already have knowledge of how to use the bench, but will also create a lawn plaque that will give short rules of how to best utilize the bench. Our family connection to Somers is strong. Bailey lived here his entire life and unfortunately died on the corner not far from the park. He loved playing at the park during softball and would come here with his T-ball mates after a game and play for a bit. I feel that he would love having one of his buddy benches in a place he loved and felt connected to. 27/289 Proposal Part 2: Park Library A second initiative that we are creating is “Park Libraries”. Little Libraries are filled with books for anyone to take and read. Park Libraries would be filled with items for families to play with in a park. Examples are, balls, soft frisbees, and wiffle balls and bats. We would love to install our first Park Library in Somers Memorial Park. While the items will be labeled and verbiage would state it is to be borrowed, we do know there will be loss and have configured that into our initiative. I would work out details regarding the type of container to be built and installed so that it would meet safety standards for the park and Somers. I will work with Josh Sullivan to be sure standards are adhered to. I appreciate your time and consideration for these proposals. Kirsten McCollum & Bailey’s Heartprints 28/289 RESOLUTION 2026-020 A RESOLUTION OF THE SOMERS VILLAGE BOARD OF TRUSTEES APPROVING THE INSTALLATION OF A BENCH AND LITTLE LIBRARY ON THE PLAYGROUND AT VETERAN’S MEMORIAL PARK WHEREAS, the Village Board of the Village of Somers has historically made the parks available for use by Village or Town residents; and WHEREAS, it has been and continues to be the policy of the Village of Somers not to discriminate on the basis of race, religion, sex, sexual orientation, marital status, or ethnic background; and WHEREAS, it is the intention of the Village Board to allow for the use of the Playground by residents; and WHEREAS, Somers resident Kristen McCollum started the Bailey’s Heartprints organization in memory of her son Bailey McCollum who died in a car crash; and WHEREAS, a Buddy Bench is designed to be a place where one can sit when feeling lonely and signals others to come and ask to play; and WHEREAS, there are over 2,000 benches found on playgrounds and parks across the United States; and WHEREAS, Kristen McCollum and the Bailey’s Heartprints organization is donating the bench and a “small library” containing park appropriate games for residents to use; NOW, THEREFORE, BE IT RESOLVED that the Village Board of Trustees of the Village of Somers supports the installation of a bench and small library on the Veteran’s Memorial Park Playground as directed by Village Staff. Dated at Somers, Wisconsin, this day of , 2026. VILLAGE OF SOMERS By: George Stoner, President 29/289 Attest: Wendy Burnette, Clerk/Treasurer 30/289 August 12, 2026 To the Board of Trustees Village of Somers We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Village of Somers (the Village) for the year ended December 31, 2025. Professional standards require that we provide you with information about our responsibilities under gener ally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 3, 2026. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Village are described in Note I to the financial statements. No new accounting policies were adopted and the application of existing policies was not ch anged during 2025. We noted no transactions entered into by Village during the year for which there is a la ck of authoritative guidance or consensus. All significant transactions have been recognized in the financial statem ents in the proper period. See our separate letter addressing control weaknesses for further details. Accounting estimates are an integral part of the finan cial 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 and because of the possibility that future events affecting them may differ si gnificantly from those expected. The most sensitive estimates affecting the water and sewer’s financial statements were: • Management’s estimate of the depreciation is based on the estimated life of the asset. • The accrued compensation for vacation hours is based on current rate of pay. • The estimate for the allowance for uncollectible accounts is based off of the past percentage of collection and the aging report. • Estimates for net pension and net OPEB obligations and related balances are based on a variety of actuarial valuations and assumptions provided by the State of Wisconsin or actuaries engaged by the Village. We evaluated the key factors and assumptions used to develop these estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. 31/289 Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communi cate them to the appropriate level of management. The misstatements we identified were material individually and in the aggregate. Management has corrected all such misstatements. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated August 12, 2026. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Village’s financial st atements or a determination of the ty pe of auditor’s opinion that may be expressed on those statements, our professional standards require the consulti ng accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues 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. Other Matters We applied certain limited procedures to the pension and OPEB schedules and the Management Discussion and Analysis, which are 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 audi t 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 combining and individual non-major fund statements, which accompany the financial statements but are not RSI. With respect to this supp lementary 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. 32/289 Restriction on Use This information is intended solely for the informatio n and use of the Board of Trustees and management of the Village and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Andrea & Orendorff LLP 33/289 To the Board of Trustees Village of Somers In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Somers (the Village) as of and for the year ended December 31, 2025, in accordance with auditing standards generally accepted in the United States of America, we considered the Village’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purp ose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we do not express 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 deficienc ies may exist that were not identified. However, as discussed below, we identified certain deficiencies in inte rnal control that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatem ent of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the following deficiency in internal control to be a material weakness: • Financial Reporting / Material Journal Entries – Management is responsible for preparation and fair presentation of the Village’s annual financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). The Village’s system of internal controls is adequate for processing and recording daily transactions and financial activity but is not sufficient for recording and tracking balances and data required to prepare the annual statements and footnotes in accordance GAAP. As a result, the auditors were required to record mate rial journal entries to properly report the financial statements and have been hired to prepare the Village’s annual financial statements and footnotes. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiency in internal control to be a significant deficiency: • Segregation of Duties – An effective system of internal control requires that incompatible duties be adequately segregated so that no one individual has cont rol over all phases of a transaction. The Village does not have adequate separation of duties over the utility billing function, as a single individual has responsibility for creating and updating customer ac counts, downloading and reviewing meter read data, updating and adjusting billing rates, processing periodic utility billings, reviewing and adjusting the billings prior to mailing, and occasionally collecting payment for utility billings. Although finance personnel perform a periodic review of billing regist ers and independently reconcile t he Village’s bank accounts, these compensating controls do not eliminate the risks arising from inadequate separation of duties. This communication is intended solely for the informat ion and use of management, the Board of Trustees, and others within the Village, and is not intended to be, and should not be, used by anyone other than these specified parties. Andrea & Orendorff LLP Pleasant Prairie, Wisconsin August 12, 2026 34/289 VILLAGE OF SOMERS KENOSHA COUNTY, WISCONSIN FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 Andrea & Orendorff LLP 10411 Corporate Drive, Suite 104 Pleasant Prairie, WI 53158 (262) 657-7716 35/289 VILLAGE OF SOMERS Table of Contents December 31, 2025 P A G E Independent Auditor’s Report 1 Management’s Discussion and Analysis 4 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 22 Statement of Activities 23 Fund Financial Statements Balance Sheet — Governmental Funds 24 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 25 Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds 26 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 27 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual — General Fund 28 Statement of Net Position — Proprietary Funds 29 Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds 31 Statement of Cash Flows — Proprietary Funds 32 Statement of Net Position – Fiduciary Funds 34 Statement of Changes in Net Position – Fiduciary Funds 35 Notes to the Financial Statements 36 Required Supplementary Information 92 Schedule of Changes in Health Insurance OPEB Liability 93 36/289 Schedule of the Net OPEB Liability (Asset) – Retiree Health Insurance Plan – Last 10 Fiscal Years 93 Schedule of Proportionate Share of the Net OPEB Liability (Asset) – Local Government Life Insurance Fund – Last 10 Fiscal Years 94 Schedule of Proportionate Share of the Net Pension Liability (Asset) – Wisconsin Retirement System – Last 10 Fiscal Years 95 Schedule of Employer Contributions – Wisconsin Retirement System – Last 10 Fiscal Years 95 Notes to Required Supplementary Information 96 Supplementary Information 98 Combining Balance Sheet – Nonmajor Governmental Funds 99 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 101 Combining Balance Sheet – Debt Service Fund 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Debt Service Funds 105 37/289 1 INDEPENDENT AUDITOR’S REPORT To the Village Board Village of Somers Kenosha County, Wisconsin 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 Somers, Wisconsin 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 financial statements referred to previously present fairly the financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Somers, Wisconsin, as of December 31, 2025, and the 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village of Somers, Wisconsin, 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 of Somers, Wisconsin’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. Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards 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, misrepres entations, 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. 38/289 2 In performing an audit in accordance with generally accepted auditing standards, 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 of Somers, Wisconsin’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 of Somers, Wisconsin’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 21, and the OPEB and pension schedules on pages 93 through 95 be presented to supplement the basic financial statements. Such information, 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, whic h 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 prov ide us with sufficient evidence to express an opinion or provide any assurance. 39/289 3 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Somers, Wisconsin’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and debt service fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Report on Summarized Comparative Information We have previously audited the Village of Somers, Wisconsin’s 2024 financial statements, and we expressed an unmodified opinion on those audited financial statements in our report dated October 7, 2025. In our opinion, the summarized comparative information for the governmental funds presented herein as of and for the year ended December 31, 2024, is consistent, in all material respects, with the audited financial statements from which it has been derived. Andrea & Orendorff LLP Pleasant Prairie, Wisconsin August 12, 2026 40/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 4 Our discussion and analysis of the Village of Some rs’s (the Village) financial performance provides an overview of the Village's financial activiti es for the year ended December 31, 2025. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position, the Statement of Activities, and the Fund financial statements provide information about the long-term finances and the activities of the Village as a whol e. Governmental activities reflect how services were financed in the short-term and what balance remains for future spending. The Village’s fund financial statements report the Village's operations in more detail than government-wide statements. The Statement of Net Position and Statement of Activities provide information about the Village's most significant funds. Our analysis of the Village as a whole begins on page 22. Reporting the Village as a Whole One of the most important questions asked about the Village's finances - "Is the Village as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about th e Village as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting. Most private-sector companies use accrual basis of accounting. All the current year's revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the Village's net position and changes in them. You can think of the Village's net position - the differe nce between assets and liabilitie s - as one way to measure the Village's financial health, or financial position. Ov er time, increases or decreases in the Village's net position are one indicator of whether its financial health is improving or deteriorating. To fully assess the Village’s financial health, you will need to consider other non-financial factors, such as changes in the Village's property tax base and the condition of the Village's roads, both of which have shown significant improvement. To aid in the understanding of the Statement of Activities, some additional explanation is given. Of particular interest is the format that is significantly different than a typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the Village's taxpayers. It also identifies how much each function draws from the general revenues or if it is self-financing, through fees and grants. In the Statement of Net Position and the Statement of Activities, we divide the Village into three kinds of activities: Governmental activities: Most of the Village's basic services are reported here, including public safety, highway, parks, planning, capital projects, and administration. Property taxes, licensure fees, fines, donations, and state and federal grants finance most of these activities. 41/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 5 Reporting the Village as a Whole (continued) Governmental Activities: (continued) The functions and programs of the primary government, along with the composition of each function by Village department are listed below. • General Government includes the Village Board, Municipal Court, Village office, Clerk- Treasurer, Elections, Board of Review, Village A ssessor, audit fees, legal fees, engineering, Village Hall, membership dues, advertising and publications, property and liability insurance, and Debt Service payments. • Public Safety includes the Somers Fire and Rescue department and the Village’s Building Inspection department. Public Safety also includes payments under a contract with the Kenosha County Sheriff’s Department for general law enforcement services provided by the County 24 hours per day. • Public Works includes the maintenance of all Village & Town roads, operation of municipal sewer & water utilities, related fa cilities and st reet lighting. • Solid Waste Collection is a contracted service for garbage and recycling pickup. • Leisure Activities includes a recreation program which offers softball, soccer, golf & basketball. • Conservation and Development includes the Plan Commission, the Board of Appeals, the Park Committee, and the eleven Tax Incremental Districts. In an effort to save costs, the Village contracts with Kenosha County Planning & Development for zoning oversight. Business-type activities: The Village charges fees to customers for the business-type services it provides. The business- type activities include the Somers Water Utility, Storm Water Utility, and the two sewer utilities – KR and Utility District #1. Water rates are established by the Public Service Commission of Wisconsin based on fact and circumstances presente d in rate case petitions by the water utility management. Once granted, water rates are implemented with the review and approval of the Somers Water Commissioners. Rates for sewer service are established by the sewer utility management subject to approval by the Village of Somers Sewer Commission. Fiduciary activities: The Village collects property taxes on behalf of other governments. Collected taxes are included in cash and offset with a matching liability to the government. Uncollected taxes are recorded as a receivable. 42/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 6 Reporting the Village's Most Significant Funds The fund financial statements provide detailed information about the most significant funds - not the Village as a whole. The Village, by the nature of its activity, utilizes three types of funds – governmental, proprietary, and fiduciary, requiring different accounting approaches. Governmental Funds Most of the Village's basic services are reported in Governmental Funds, which focus on how money flows in and out of those funds and balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental Fund statements provide a detailed short-term view of the Village's general government operations and the basic services it provides. Governmental Fund information helps determine the financial resources that can be spent in the near future to finance the Village's programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations following the respective Governmental Funds’ statements. The Governmental Funds include the General Fund, a 10-year Capital Projects Fund, Debt Service Funds, and Tax Incremental Districts #1-11. Additionally, the Village reports other governmental activities including park improvement, restricted federal funding, and drainage as non-major Special Revenue funds. The General Fund includes General Government, Public Safety, Public Works, Solid Waste Collection, Leisure Activities, and Conservation and Development. The Capital Projects Fund is used to account for infrastructure projects, developer’s incentive payments & on-going TIF project expenses. The Debt Service Fund serves as a clearing account for present and future debt payments. Proprietary Funds The Village uses Proprietary Funds to account for its business-type activities such as the Somers Water Utility, Storm Water Utility, the KR Sewer District, and Utility District #1. The Proprietary Funds are reported in the same way that all activiti es are reported in the Statement of Net Position and the Statement of Activities. The Village’s Proprietary Fund is the same as the business-type activities we report in the government-wide statements but provides more detail and additional information such as cash flows. Fiduciary Funds The Village uses a Fiduciary Fund to account for taxes collected by the Village on behalf of other municipalities. The fiduciary fund is reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. 43/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 7 The Village as a Whole Government-wide Financial Analysis The condensed financial statements on page 8 and 9 present the net position of the Village and changes in net position. These statements are presented with comparisons to 2024. Net position may serve over time as a useful indicator of a government’s financial position. In 2025, the Village’s assets exceeded liabilities by $77,814,029 as compared to having assets in excess of liabilities of $70,384,830 in 2024. The largest portion of the Village’s 2025 net position (69%, compared to 73% for 2024) reflects the Village’s investment in capital assets less any outstanding related debt used to acquire those assets. The Village uses these capital assets to provide services to the citizens; consequently, these assets are not available for future spending. Although the Village’s inve stment in its 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. Net position of approximate ly $23,000,000 ( $18,000,000 for 2024) is in the category of unrestricted net assets which may be used to meet the Village’s ongoing obligations to citizens and creditors. This represents 29% and 25% of total net position each year, respectively. In 2025 and 2024, restricted net position was 2% of the total. Unrestricted 29% Restricted 2% Net Investment in Capital Assets 69% Analysis of 2025 Net Position 44/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 8 The Village as a Whole (continued) Government-wide Financial Analysis (continued) $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 2025 2024 Comparison of Net Position Net Investment in Capital Assets Restricted Unrestricted 2025 2024 2025 2024 2025 2024 Current and other assets 36,116,116$ 30,444,252$ 15,624,093$ 15,544,274$ 51,740,209$ 45,988,526$ Capital assets 17,159,117 17,649,352 66,655,583 66,209,678 83,814,700 83,859,030 Total Assets 53,275,233 48,093,604 82,279,676 81,753,952 135,554,909 129,847,556 Deferred outflow s of resources 1,554,447 2,087,693 238,759 319,686 1,793,206 2,407,379 Long-term liabilities outstanding 27,418,776 29,789,709 10,638,764 12,265,960 38,057,540 42,055,669 Other liabilities 4,919,023 4,908,679 2,169,910 2,328,651 7,088,933 7,237,330 Total liabilities 32,337,799 34,698,388 12,808,674 14,594,611 45,146,473 49,292,999 Deferred inflow s of resources 13,851,999 12,336,824 535,614 240,282 14,387,613 12,577,106 Net position: Net investment in capital assets 16,492,753 16,179,834 37,109,962 35,077,386 53,602,715 51,257,220 Restricted 1,597,814 1,373,071 - - 1,597,814 1,373,071 Unrestricted (9,450,685) (14,406,820) 32,064,185 32,161,359 22,613,500 17,754,539 Total Net Position 8,639,882$ 3,146,085$ 69,174,147$ 67,238,745$ 77,814,029$ 70,384,830$ Activities Activities Total VILLAGE OF SOME RS STATEMENT OF NET POSITION December 31, 2025 Governmental Business-type 45/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 9 The Village as a Whole (continued) Government-wide Financial Analysis (continued) 2025 2024 2025 2024 2025 2024 Revenues: Program revenues: Charges for services 2,489,949$ 1,730,999$ 5,564,356$ 5,349,772$ 8,054,305$ 7,080,771$ Operating grants and contributions 378,466 815,486 10,650 - 389,116 815,486 General revenues: Property taxes 4,210,109 3,957,085 - - 4,210,109 3,957,085 Other taxes 5,658,051 4,584,411 - - 5,658,051 4,584,411 Grants and contributions not restricted to specific programs 803,816 699,920 - - 803,816 699,920 Other revenues 1,639,840 2,114,956 201,002 1,882,299 1,840,842 3,997,255 Total revenues 15,180,231 13,902,857 5,776,008 7,232,071 20,956,239 21,134,928 Expenses: General government 1,687,560 1,885,952 - - 1,687,560 1,885,952 Public safety 4,803,291 4,432,887 - - 4,803,291 4,432,887 Public w orks 1,150,299 1,099,756 - - 1,150,299 1,099,756 Solid w aste collection 622,174 815,630 - - 622,174 815,630 Leisure activities 21,530 39,343 - - 21,530 39,343 Conservation and development 816,158 456,943 - - 816,158 456,943 Interest on long-term debt 610,811 663,267 - - 610,811 663,267 Sew er - - 3,272,675 2,942,797 3,272,675 2,942,797 Water - - 1,570,196 1,562,343 1,570,196 1,562,343 Total expenses 9,711,823 9,393,777 4,842,871 4,505,140 14,554,694 13,898,917 Excess (deficiency) of revenues over expenditures 5,468,408 4,509,080 933,137 2,726,931 6,401,545 7,236,011 Contributions and transfers 25,389 1,441,610 1,002,265 (510,920) 1,027,654 930,690 Increase (decrease) in net position 5,493,797 5,950,690 1,935,402 2,216,011 7,429,199 8,166,701 Net position - beginning of year 3,146,085 (2,804,605) 67,238,745 65,022,734 70,384,830 62,218,129 Net position - end of year 8,639,882$ 3,146,085$ 69,174,147$ 67,238,745 $ 77,814,029 $ 70,384,830 $ Activities Activities Total VILLAGE OF SOME RS CHANGES IN NET POSITION For the Year Ended December 31, 2025 Governmental Business-type Revenues: Total revenues for the Village decreased by $178,689 due to prior year developer contributions being less than 2024. Expenditures: Expenditures increased by $655,777 for the Village. This is due to general inflation and increased cost of labor, materials, and other services purchased by the Village. 46/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 10 REVENUES BY SOURCE – GOVERNMENTAL ACTIVITIES This chart illustrates the percent of revenue sources that fund the Village’s governmental activities. Unrestricted Grants 5% Other Revenues 11% Charges for Services 16% Operating Grants 3% Property Taxes 65% 2025 Revenues by Source - Governm ental A ctivities The following chart shows the portion of expenses by function that is covered by program revenues. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 General Government Public Safety Public Works Solid Waste Collection Conservation and Development Leisure Activities 2025 Program Revenues and Expenses - Governm ental A ctivities Program Revenue Expenses 47/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 11 REVENUES BY SOURCE – BUSINESS-TYPE ACTIVITIES This chart illustrates the percent of revenue source s that fund the Village’s business-type activities. Other Revenues 3% Charges for Services 96% 2025 Revenues by Source - Business-type Activities PROGRAM REVENUES AND EXPENSES – BUSINESS-TYPE ACTIVITIES The following chart shows the portion of expenses by function that is covered by program revenues for business-type activities. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Sewer Water 2025 Program Revenues and Expenses - Business-type Activities Program Revenues Expenses 48/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 12 The Village's Funds The Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These funds, along with major changes that occurred in the Village’s funds are described below. In 2025, the Village Board continued to follow policies that cover the areas of debt and capitalization. The Village adopted a Utility study in 2020. The Village is also updating its 10-year Capital Improvement Plan, and long-range Financial Management Plan. General Fund The General Fund closed out in 2025 with an increase of $758,590, after transfers of $514,757 to the capital projects fund. The General Fund balance of $7.4 million is 107% of General Fund expenditures. The Village’s fund balance policy requires at least a seventeen percent reserve. Additionally, the Village assigned $509,036 of the General Fund’s increase for 2026 expenditures. The following table shows total General fund balances for the past three years: 2023 2024 2025 General fund $ 5,838,139 $ 6,652,700 $ 7,411,290 Special Revenue Funds The Parks and Drainage funds are “long-standing” funds to be used for park and drainage improvement projects. In 2021, the ARPA fund was added to account for funds received and spent under the American Rescue Plan Act. Since being involved with the Root-Pike Watershed In itiative Network, the Village of Somers has utilized drainage funds to promote educational programs to teach the public about the benefits of preserving our natural resources. The programs chosen for this educational initiative were carefully reviewed to ensure they satisfy the requirements for the State of Wisconsin’s Storm Water Management Discharge Permit. ARPA funding of $13,406 remained unspent at year-end. In accordance with grant requirements, this remaining balance had been committed as of December 31, 2024 for future projects. The fund will be closed once all remaining ARPA funding has been spent. Capital Projects Fund The Capital Projects Fund is reviewed on an annual basis & approved by the Village Board. The Board continues to follow a 10-year Capital Projects Budget. Debt Service Fund The sole purpose is for servicing governmental debt. All of the Tax Incremental Districts’ debt is included in the Debt Service. The fund balance at year-end was $14,704,273 compared to $10,934,766 in 2024. As of December 31, 2025, the fund balance incl udes $14,619,536 collected and held for repayment of debt associated with the Village’s TIF Districts. 49/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 13 The Village's Funds (continued) Tax Incremental Districts TIF District deficits are anticipated to be funded with future incremental taxes levied over the life of the district. All of the Village's TIF Districts are within the 15-year expenditure period, during which projects are being financed with General Obligation Debt issued by the Village, or by developer contributions or other sources as determined by the Board. As of December 31, 2025, the incremental value of all the Village's TIDs si nce the respective base years is $541,019,000. Tax Incremental District #1 Created in 2015 north of 39th Street and East of 88th Avenue, this 300-acre industrial district with a base value of $476,300 has a fund balance of $1,143,574, not including $4,585,131 restricted for debt service. The District will expire in 2035. Estimated future costs of $12,642,151 are expected to result in future revenues of $15,118,645. In 2025, net new construction in the TID increased the Village's equalized value by an estimated $745,700. Tax Incremental District #2 Created in 2015 along State Highway 31 north of County Highway S, this 193.92-acre mixed use district with a base value of $5,810,800 has a fund deficit of $16,052, not including $4,729,662 restricted for debt service. The District will expire in 2035. Estimated future costs of $6,117,401 are expected to result in future revenues of $6,348,300. In 2025, net new construction in the TID increased the Village's equalized val ue by an estimated $10,400. Tax Incremental District #3 Created in 2018 near I-94 and Highway 142, this 388.42-acre mixed use district with a base value of $1,779,800 has a fund deficit of $421,807, not including $2,203,521 restricted for debt service. The District will expire in 2038. Estimated future costs of $23,604,859 are expected to result in future revenues of $32,015,702. In 2025, net new construction in the TID increased the Village's equalized value by an estimated $22,817,600. Tax Incremental District #4 Created in 2018 near County Highway E and State Highway 31, this 150.10-acre mixed use district with a base value of $1,767,500 has a fund deficit of $1,262,404, not including $2,510,201 restricted for debt service. The District will expire in 2038. Estimated future costs of $6,588,675 are expected to result in future revenues of $18,200,174. In 2025, net new construction in the TID did not increase the Village’s equalized value. Tax Incremental District #5 Created in 2018 along State Highway 31 around County Highway L, this 536.47-acre mixed use district with a base value of $1,148,400 has a fund deficit of $317,922, not including $158,157 restricted for debt service. The District will expire in 2038. Estimated future costs of $14,207,815 are expected to result in future revenues of $25,403,377. In 2025, net new construction in the TID increased the Village's equalized value by an estimated $10,765,800. 50/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 14 The Village's Funds (continued) Tax Incremental District #6 Created in 2018 along County Highway E and I-94, this 663.34-acre mixed use district with a base value of $2,894,000 has a fund balance of $249,102, not including $218,005 restricted for debt service. The District will expire in 2038. Estimated future costs of $13,152,470 are expected to result in future revenues of $9,936,720. In 2025, net new construction in the TID increased the Village's equalized value by an estimated $3,417,900. Tax Incremental District #7 Created in 2018 along County Highway KR and I-94, this 1,678.55-acre mixed use district with a base value of $8,364,800 has a fund deficit of $28,799, not including $189,774 restricted for debt service. The District will expire in 2038. Estimated future costs of $3,956 are expected to result in future revenues of $27,799. In 2025, net new construction in the TID did not increase the Village’s equalized value. Tax Incremental District #8 Created in 2018 along County Highway E and I-94, this 220.76-acre mixed use district with a base value of $362,100 has a fund deficit of $610,945, not including $4,320 restricted for debt service. The District will expire in 2038. Estimated future costs of $10,826,761 are expected to result in future revenues of $13,172,020. In 2025, there was no net new construction in the TID, but the TID financed $734,406 of infrastructure improvements which were contributed to the Water and Sewer Funds. Tax Incremental District #9 Created in 2018 near the lakefront on the northern part of State Highway 32, this 6.23-acre mixed use district with a base value of $2,081,700 has a fund deficit of $20,755, not including $16,659 restricted for debt service. The District will expire in 2038. Estimated future costs of $1,206,043 are expected to result in future revenues of $2,643,224. In 2025, there was no net new construction in the TID. Tax Incremental District #10 Created in 2018 near 11th Place and State Highway 32, this 12.47-acre mixed use district with a base value of $3,219,200 was terminated in April 2025. Upon termination, all unspent TID funds were returned to the incorporated districts, including $80,671 to the Village’s General Fund. Tax Incremental District #11 Created in 2018 near County Highways S and H, this 66.49-acre mixed use district with a base value of $195,100 has a fund deficit of $24,155, not including $4,106 restricted for debt service. The District will expire in 2038. Estimated future costs of $8,277,962 are expected to result in future revenues of $10,540,590. In 2025, there was no net new construction in the TID. Enterprise Funds Somers Water Utility, Utility District #1, KR Sewer Utility, and the Storm Water Utility all operate as enterprise funds. All of the enterprise funds account for contributed capital as revenue received in the year the capital asset is recognized. 51/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 15 The Village's Funds (continued) Somers Water Utility Fund The Water Utility closed 2025 with an increase in net position of $ 761,802 due to current year operating revenues exceeding the Fund’s ongoing expenditures. M anagement, in concert with consulting engineers and Board oversight, continues to develop Village-wide plans that address new development in areas to be serviced by municipal water. Sewer Utility District #1 Fund Overall, the Sewer Utility District #1 closed out the year with an increase in net position of $1,103,385. Total net operating income for the Sewer Utility District #1 in 2025 was $ 590,513. This fund has a total net position at year end 2025 of $34.2 million. Sewer system maintenance is critical for the health and safety of our residents. To ensure seamless service to the sewer customer base, Sewer Ut ility District #1 employs camera aided visual inspection to determine the need and type of periodic maintenance best suited. The District conti nues to use its VAC truck to maintain the Utility’s infrastructure, including lift stations and sanitary sewer lines. In 2020, the Village received a $5 million loan for rehabilitation/replacement of sewer mains and laterals in the Sheridan Road Corridor. The Village Sewer Utility has continued its effort to limit inflow and infiltration. The Country Charms neighborhood was partially televised to assess its condition. The remaining televising will take place in 2026. From the 2025 portion, the sanitary main was found to be in poor condition, and sewer main lining is scheduled to take place in late 2026 and early 2027. The Village will continue to evaluate its current infrastructure and repair as needed. Beix and Valley View subdivisions were also televised and found to be in good condition, so no rehabilitation work is needed at this time. The sanitary lining scheduled to take place in 2026 & 2027 will decrease I&I in the sanitary system, allowing pumping stations to run less often and prolonging the life of the infrastructure. KR Sewer Utility Fund The KR Sewer Utility was established to service a small area along the County Highway KR border, Racine County to the north. The sewer line flows into the Mount Pleasant Interceptor Sewer and ultimately east to the Racine Sewer treatment plant. For this service, the utility pays a set amount per quarter to the Village of Mount Pleasant for the treatment of sewer and an annual r ental charge for the conveyance line on KR. In 2025, the Utility experienced an operating loss of $128,134. The KR Sewer Utility has a multi-jurisdictional agreement to help Racine Sewer Utility reconstruct the aging treatment plant. On an annual basis, a series of calculations based on property values is performed. The agreement and the resulting calculation determine who owes money to City of Racine Sewer Utility and who receives money. Storm Water Fund The Storm Water Utility closed 2025 with an increase in net position of $ 185,850 due mainly to current year operating income. M anagement, in concert with consulting engineers and Board oversight, continues to develop Village-wide plans that address new development in areas to be serviced by municipal water. The Village intends for all new residential development stormwater infrastructure to be curb and gutter. Under the di rection of the Utilities Manager, the Stormwater Fund will be used to pay for the stormwater part of future road projects. 52/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 16 GENERAL FUND BUDGETARY HIGHLIGHTS The Village General Fund has fund balance of $7,411,290 which is a $758,590 increase from 2024. Below is a summary of the General Fund’s actual revenues and expenditures compared to budgeted amounts. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2025 General Fund Expenditures - Budget vs. Actual Budget Actual $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2025 General Fund Revenues - Budget vs. Actual Budget Actual 53/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 17 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of December 2025, the Village had $83,814,700 invested in capital assets including buildings, parks, vehicles, equipment, and infrastructure. See Note IV C. on page 60 for more detail on capital assets. A summary report of capital assets is as follows: 2025 2024 2025 2024 2025 2024 Intangible Assets 60,015$ 60,015$ 60,393$ 60,393$ 120,408$ 120,408$ Construction in Progress - - 381,522 536,561 381,522 536,561 Land 1,143,695 1,143,695 39,000 4,000 1,182,695 1,147,695 Land Improvements 4,928,577 4,928,577 - - 4,928,577 4,928,577 Utility Plant in Service - - 81,830,297 79,874,783 81,830,297 79,874,783 Buildings 6,592,863 6,592,863 - - 6,592,863 6,592,863 Machinery & Equipment 6,838,409 7,824,970 3,682,497 3,457,236 10,520,906 11,282,206 Infrastructure 12,244,951 11,981,489 - - 12,244,951 11,981,489 Total Capital Assets 31,808,510 32,531,609 85,993,709 83,932,973 117,802,219 116,464,582 Less: Accumulated Depreciation (14,649,393) (14,882,257) (19,338,126) (17,723,295) (33,987,519) (32,605,552) Total Net Capital Assets 17,159,117$ 17,649,352$ 66,655,583$ 66,209,678$ 83,814,700$ 83,859,030$ Activities G overnmental Business-Type Activities Totals Debt At the end of the year, the Village’s outstanding general obligation (GO) debt and Revenue Bonds totaled $28,265,334. See Note IV E. on page 63 for more detail on debt. Bonded Debt Outstanding 12/31/24 31,598,234$ Bonded Debt Issued - Bonded Principal Retired (3,332,900) Bonded Debt Outstanding 12/31/25 28,265,334$ Breakdown of Outstanding Bonded Debt: Revenue Bonds 13,555,334$ General Obligation Debt 14,710,000 Bonded Debt Outstanding 12/31/25 28,265,334$ Management has calculated the net pension expense and asset as required by the Governmental Accounting Standards Board (GASB) Statement No. 68 – Accounting and Financial Reporting for Pensions, as well as the expenses and liabilities for other post-employment benefits required by GASB Statement No. 75 - Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Please see Note V A. on page 73 and Note V B. on page 79 for further information on this calculation. 54/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 18 ECONOMIC FACTORS AND DEVELOPMENT PROJECT UPDATES Somers is a small community located along Interstate 94 (I-94) in southeastern Wisconsin's Kenosha County, between Milwaukee and Chicago. Through fiscal planning practices and policy changes, the Village has seen solid financial performance over the past five fiscal years. The Village has continued to invest heavily in bringing infrastructure to the I-94 Corridor area. These investments have spurred new development along the extended utilities. A growing number of developers are interested in developing residential housing within the Village. In 2025, the Village approved the Somers Creek subdivision, a 69 single-family home development. Two Tax Incremental Financing Districts (TIDs) were created in 2015 followed by nine more TIDs in 2018. The first two TIDs have performed well and are now home to a successful Industrial Park in TID 1 and a thriving commercial center in TID 2 anchored by a Walmart Supercenter and Sam’s Club. It is home to a Festival Foods grocery store and a Kwik Trip convenience store, as well as the Somers Market Square Apartments. A new restaurant, Tropical Smoothie, was built on one of the few open parcels in the commercial area. TID 3 continues to make progress. In the summer of 2022, TID 3 and the Village became home to the “World’s Largest Kwik Trip”. This site is a 13,250 square foot travel center, with a car wash, outside dining area, dog walking area, and 105 truck parking lot area. In 2022, HSA’s Somers Highland Commerce center broke ground. This 918,844 square foot site received occupancy in 2024. In 2021, Becknell Industries and the Village entered into an agreement to create a Class “A” warehousing/industrial building onto approximately 50 acres. The 795,000 square foot building was completed in 2023. TID 4 is home to the Hawthorn Apartments complex. This project was completed in 2021 and provided an additional 241 units of market rate apartments. The WVRC Emergency Vet Clinic was also completed and occupied in 2021. Somers Creek, a 69-unit single-family home subdivision, was approved and is being built across the street. TID 5 saw its first development take shape in 2021. The Village entered into a development agreement with SCS Pike Creek, LLC, to bring 338 uni ts of market rate apartments to the Village. The original 88-acre parcel is located at the Northwest corner of STH 31 and CTH L. Approximately 64 acres will be home to the multi-family project, and the remaining acreage will be retained by the original owner for a future commercial project. This project broke ground in 2022 and major improvements were made to CTH L to prepare for the additional traffic. Phase I of the project was completed, and units are fully occupied. Phase II is under construction and expected to be completed in 2026. 55/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 19 ECONOMIC FACTORS AND DEVELOPMENT PROJECT UPDATES (continued) TID 6 is home to the Pritzker Military Museum & Library, an architectural gem designed by Elmunt Jahn. Built in 2022, the property will include community green space and the world’s only Cold War Memorial. The project brought an estimated $14.5 mi llion dollars for sewer an d water infrastructure to the Village. Infrastructure work began in 2021 and was substantially completed in 2022, opening over 1,000 acres for potential future development. In 2023, the Pritzker Military Archive Center received occupancy and a “soft opening was held”. Along the west side of the property, a Firearms Education and Training Center, was built in 2024. TID 8 saw its first development in 2025. The Village approved the Somers Gateway Center, a travel plaza at the I-94 Exit onto Highway E. The pr oject extended utilities for approximately 17 additional acres of development by the owner. The travel plaza opened in 2026. The Paris Intergovernmental Agreement, finalized in 2017, is a historic agreement between the Village of Somers, City of Kenosha, and Town of Paris. The agreement opened 2,000 acres of land for development which is estimated at a potential improved value of $2 billion. In 2021, the Village approved its first attachment of land from the Town of Paris to the Village under said agreement. The Flint Development consists of two “Class A” warehousing/ industrial buildings. One is approximately 700,000 square feet, the other 500,000. In 2025, IEA relocated a manufacturing facility to Somers, diversifying the Village’s tax base. A Kenosha manufacturing company decided to buy the second building, bringing further diversity to the Village’ tax base. Additionally, Truck Country of Wisconsin submitted a concept plan within the Growth Area and is scheduled for potential approval in 2026. RATING The Village maintains its S&P Global Rating of 'AA-' rating for taxable general obligation (GO) refunding bonds. The outlook is stable. Moody’s performed an annual review on debt issuanc es. Moody’s affirmed the Village’s general obligations rating at A1, and water and sewer funds at A2.    56/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 20 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES COMBINED ASSESSED VALUE TRENDS 0.00 200,000,000.00 400,000,000.00 600,000,000.00 800,000,000.00 1,000,000,000.00 1,200,000,000.00 1,400,000,000.00 1,600,000,000.00 1,800,000,000.00 2021 2022 2023 2024 2025 ASSESSED VALUE FOR THE PAST FIVE YEARS 57/289 VILLAGE OF SOMERS MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) 21 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT This financial report is designed to provide our re sidents, taxpayers, customers, and creditors with a comprehensive overview of the Village's finances and to show the Village's accountability for the money it receives. If you have questions about this report or need additional information, contact the Village of Somers at 7511 12 th Street, P.O. Box 197, Somers, WI. Jim Hurley Village Administrator 7% 93% 2025 COMBINED ASSESSED VALUE $1,784,924,600 TOWN VILLAGE 58/289 Governmental Activities Business-type Activities Total ASSETS Cash and cash equivalents 19,682,308 $ 8,328,042 $ 28,010,350 $ Investments 5,193,008 - 5,193,008 Receivables Property taxes 8,928,376 - 8,928,376 Special assessments - current - 2,271,818 2,271,818 Leases - current 14,931 - 14,931 Other 547,446 1,255,576 1,803,022 Prepaid expenses 33,122 10,935 44,057 Restricted cash and cash equivalents 488,265 161,923 650,188 Restricted investments 354,460 84,153 438,613 Internal balances (546,502) 546,502 - Special assessments - noncurrent 631,339 2,962,219 3,593,558 Leases - noncurrent 789,363 - 789,363 Net OPEB asset - 2,925 2,925 Capital assets Land and construction in progress 1,143,693 420,522 1,564,215 Other capital assets, net of depreciation 16,015,424 66,235,061 82,250,485 Total capital assets 17,159,117 66,655,583 83,814,700 Total assets 53,275,233 82,279,676 135,554,909 DEFERRED OUTFLOWS OF RESOURCES Related to pension 1,502,208 221,199 1,723,407 Related to post-employment benefits 52,239 17,560 69,799 Total deferred outflows of resources 1,554,447 238,759 1,793,206 LIABILITIES Accounts payable and accrued expenses 1,015,258 515,322 1,530,580 Due to other governments 7,386 - 7,386 Deposits & trust accounts 289,128 - 289,128 Accrued interest 120,455 52,916 173,371 Unearned revenues 71,623 - 71,623 Long-term liabilities Net pension liability 251,475 35,654 287,129 Other post-employment benefits 1,689,938 236,881 1,926,819 Debt due within one year 1,917,313 1,601,672 3,518,985 Debt due in more than one year 26,975,223 10,366,229 37,341,452 Total liabilities 32,337,799 12,808,674 45,146,473 DEFERRED INFLOWS OF RESOURCES Related to property tax levy 12,479,818 359,044 12,838,862 Related to leases 359,001 - 359,001 Related to pension 738,511 104,708 843,219 Related to post-employment benefits 217,340 71,862 289,202 Deferred gain on refunding 57,329 - 57,329 Total deferred inflows of resources 13,851,999 535,614 14,387,613 NET POSITION Net investment in capital assets 16,492,753 37,148,962 53,641,715 Restricted 1,597,814 - 1,597,814 Unrestricted (deficit) (9,450,685) 32,025,185 22,574,500 Total net position 8,639,882$ 69,174,147$ 77,814,029$ VILLAGE OF SOMERS STATEMENT OF NET POSITION December 31, 2025 See accompanying notes to the financial statements. 22 59/289 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Primary government Governmental activities General government 1,687,560$ 910,658$ 6,200$ -$ (770,702)$ -$ (770,702)$ Public safety 4,803,291 728,632 71,896 - (4,002,763) - (4,002,763) Public works 1,150,299 22,819 214,740 - (912,740) - (912,740) Solid waste collection 622,174 - 70,254 - (551,920) - (551,920) Leisure activities 21,530 9,980 - - (11,550) - (11,550) Conservation and development 816,158 817,860 15,376 - 17,078 - 17,078 Interest on long-term debt 610,811 - - - (610,811) - (610,811) Total governmental activities 9,711,823 2,489,949 378,466 - (6,843,408) - (6,843,408) Business-type activities Sewer 3,272,675 3,508,244 10,650 - - 246,219 246,219 Water 1,570,196 2,056,112 - - - 485,916 485,916 Total business-type activities 4,842,871 5,564,356 10,650 - - 732,135 732,135 Total primary government 14,554,694$ 8,054,305$ 389,116 $ -$ (6,843,408) 732,135 (6,111,273) General revenues: Taxes: Property taxes, levied for general purposes 4,210,109 - 4,210,109 Property taxes, levied for debt service 5,658,051 - 5,658,051 Grants and contributions not restricted to specific programs 803,816 - 803,816 Unrestricted investment earnings 1,286,407 46,002 1,332,409 Miscellaneous 307,950 155,000 462,950 Gain on disposal of assets 45,483 - 45,483 Total general revenues 12,311,816 201,002 12,512,818 Contributions & transfers: Capital contributed from developers - 1,027,654 1,027,654 Other transfers 25,389 (25,389) - Total contributions & transfers 25,389 1,002,265 1,027,654 Change in net position 5,493,797 1,935,402 7,429,199 Net position at beginning of year 3,146,085 67,238,745 70,384,830 Total net position at end of year 8,639,882$ 69,174,147$ 77,814,029$ VILLAGE OF SOMERS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2025 Net (Expense) Revenue and Changes in Net PositionProgram Revenues See accompanying notes to the financial statements. 23 60/289 General Fund Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Total Governmental Funds 2024 Total Governmental Funds ASSETS Cash and cash equivalents 5,376,295 $ 11,921,952 $ 224,603 $ 2,159,458 $ 19,682,308 $ 14,911,328 $ Investments 1,884,201 2,094,097 758,051 456,659 5,193,008 5,406,909 Receivables Property taxes 8,928,376 8,129,098 - 19,842 17,077,316 13,555,811 Ambulance fees 339,200 - - - 339,200 366,468 Miscellaneous 162,075 - - 46,171 208,246 143,393 Due from other funds 3,790,099 - - - 3,790,099 1,959,041 Prepaid expenses 33,122 - - - 33,122 20,269 Restricted cash 26,563 338,015 - 123,687 488,265 472,107 Restricted investments - 354,460 - - 354,460 344,945 Deferred special assessments - - - 631,339 631,339 646,908 TOTAL ASSETS 20,539,931$ 22,837,622 $ 982,654 $ 3,437,156 $ 47,797,363 $ 37,827,179 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable 296,007 $ 4,250 $ 544,578 $ 52,301 $ 897,136 $ 1,123,013 $ Accrued compensation 118,118 - - - 118,118 94,931 Developer deposits - - - 35,000 35,000 25,000 Due to other governments 7,386 - - - 7,386 7,386 Special deposits & trust accounts 254,128 - - - 254,128 62,887 Due to other funds 8,695,441 - - 3,790,099 12,485,540 8,186,342 Unearned revenues 38,375 - - 33,248 71,623 19,606 TOTAL LIABILITIES 9,409,455 4,250 544,578 3,910,648 13,868,931 9,519,165 DEFERRED INFLOWS OF RESOURCES Deferred property tax levy 3,719,186 8,129,099 - - 11,848,285 9,863,975 Special assessments - - - 631,533 631,533 651,375 TOTAL DEFERRED INFLOWS OF RESOURCES 3,719,186 8,129,099 - 631,533 12,479,818 10,515,350 FUND BALANCES Nonspendable Prepaid items 33,122 - - - 33,122 20,269 Restricted Tax incremental districts - - - 1,392,676 1,392,676 1,173,112 Drainage fund - - - 147,291 147,291 145,016 Park fund - - - 57,847 57,847 54,943 D ebt service - 14,704,273 - - 14,704,273 10,934,766 Assigned Fourth of July Parade 7,241 - - - 7,241 7,241 Capital projects - - 438,076 - 438,076 794,434 Developer reimbursement (TIDs) - - - 1,076,258 1,076,258 - Subsequent year expenditures 1,681,338 - - - 1,681,338 1,138,067 Unassigned 5,689,589 - - (3,779,097) 1,910,492 3,524,816 TOTAL FUND BALANCES 7,411,290 14,704,273 438,076 (1,105,025) 21,448,614 17,792,664 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 20,539,931$ 22,837,622$ 982,654$ 3,437,156$ 47,797,363$ 37,827,179$ December 31, 2025 GOVERNMENTAL FUNDS BALANCE SHEET VILLAGE OF SOMERS See accompanying notes to the financial statements. 24 61/289 Fund balance - total governmental funds 21,448,614$ Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 17,159,117 Other long-term assets are not available to pay current period expenditures and therefore are deferred in the funds. Leases receivable 804,294 Some deferred outflows and inflows of resources reflect changes in long-term liabilities and are not reported in the funds. Deferred outflows related to pensions 1,502,208 Deferred inflows related to pensions (738,511) Deferred inflows related to leases (359,001) Deferred outflows related to other postemployment benefits 52,239 Deferred inflows related to other postemployment benefits (217,340) 239,595 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and notes payable (28,166,265) Premium on debt (438,000) Compensated absences (288,276) Net pension liability (251,475) Other postemployment benefit (1,689,938) Deferred gain on refunding (57,329) Accrued interest on long-term obligations (120,455) (31,011,738) Net position 8,639,882$ VILLAGE OF SOMERS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2025 See accompanying notes to the financial statements. 25 62/289 General Fund Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Total Governmental Funds 2024 Total Governmental Funds REVENUES Taxes 4,210,109$ 5,658,051$ -$ -$ 9,868,160$ 8,541,496$ Intergovernmental revenues 1,120,450 - 15,376 46,456 1,182,282 1,515,406 Charges for services 1,007,047 - - 579,705 1,586,752 1,168,833 Licenses and permits 669,470 - - - 669,470 372,846 Fees and fines 233,726 - - - 233,726 189,321 Investment income 548,504 573,572 34,946 129,385 1,286,407 1,531,103 Miscellaneous income 299,262 - - - 299,262 577,724 Total Revenues 8,088,568 6,231,623 50,322 755,546 15,126,059 13,896,729 EXPENDITURES Current: General government 1,552,710 - - - 1,552,710 1,489,556 Public safety 4,091,177 - - - 4,091,177 3,768,175 Public works 559,256 - - - 559,256 545,525 Solid waste collection 622,107 - - - 622,107 814,639 Leisure activities 6,902 - - - 6,902 10,729 Conservation and development 59,740 - - 1,287,090 1,346,830 2,452,535 Capital outlay 4,000 - 934,055 - 938,055 1,996,759 Debt service: Principal retirement - 1,745,358 - - 1,745,358 1,810,032 Interest and other charges - 630,729 - 2,373 633,102 689,385 Total Expenditures 6,895,892 2,376,087 934,055 1,289,463 11,495,497 13,577,335 Excess (deficiency) of revenues over expenditures 1,192,676 3,855,536 (883,733) (533,917) 3,630,562 319,394 OTHER FINANCING SOURCES (USES) Capital contributions to utility - - - (734,406) (734,406) (91,857) Transfers from other funds 80,671 4,954 527,375 765,995 1,378,995 2,403,769 Transfers to other funds (514,757) (90,983) - (13,461) (619,201) (870,302) Total Other Financing Sources (Uses) (434,086) (86,029) 527,375 18,128 25,388 1,441,610 Net change in fund balance 758,590 3,769,507 (356,358) (515,789) 3,655,950 1,761,004 FUND BALANCES - Beginning of Year 6,652,700 10,934,766 794,434 (589,236) 17,792,664 16,031,660 FUND BALANCES - END OF YEAR 7,411,290$ 14,704,273 $ 438,076 $ (1,105,025) $ 21,448,614 $ 17,792,664 $ VILLAGE OF SOMERS For the Year Ended December 31, 2025 GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES See accompanying notes to the financial statements. 26 63/289 VILLAGE OF SOMERS Net change in fund balances - total governmental funds 3,655,950$ 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 Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital asset additions reported as capital outlay in governmental fund statements 572,055 Depreciation expense reported in the Statement of Activities (1,062,290) (490,235) Governmental funds do not report lease revenues and expenditures. Those amounts are recognized at the government-wide level. 9,007 Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Amortization of premium on debt issued 45,174 Principal repaid 2,357,005 2,402,179 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in accrued interest on long-term debt 22,291 Change in compensated absences (30,163) Pension expense (69,710) Other postemployment benefits expense (5,522) (83,104) Change in net position of governmental activities 5,493,797$ RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2025 See accompanying notes to the financial statements. 27 64/289 Description Original Final Actual Amounts Variance with Final Budget Revenues Taxes 4,174,777$ 4,205,017$ 4,210,109$ 5,092$ Intergovernmental revenues 1,075,687 1,114,050 1,120,450 6,400 Charges for services 829,095 1,007,047 1,007,047 - Licenses and permits 377,501 375,445 669,470 294,025 Fees and fines 175,025 225,718 233,726 8,008 Investment income 401,000 453,504 548,504 95,000 Miscellaneous income 137,600 250,903 299,262 48,359 Total revenues 7,170,685 7,631,684 8,088,568 456,884 Expenditures Current: General government 1,592,502 1,552,680 1,552,710 (30) Public safety 4,181,078 4,049,412 4,091,177 (41,765) Public works 620,818 559,256 559,256 - Solid waste collection 647,722 622,107 622,107 - Culture and recreation 14,844 6,902 6,902 - Planning and development 67,956 59,740 59,740 - Capital outlay 41,765 41,765 4,000 37,765 Contingency reserve 4,000 4,000 - 4,000 Total expenditures 7,170,685 6,895,862 6,895,892 (30) Excess (deficiency) of revenues over expenditures - 735,822 1,192,676 456,854 OTHER FINANCING SOURCES (USES) Transfers in - 80,671 80,671 - Tr ansfers out - (514,757) (514,757) - Total other financing sources and uses - (434,086) (434,086) - Net change in fund balance - 301,736 758,590 456,854 Fund balance - beginning of year 6,652,700 6,652,700 6,652,700 - Fund balance - end of year 6,652,700$ 6,954,436$ 7,411,290$ 456,854$ Budgeted Amounts VILLAGE OF SOMERS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2025 See accompanying notes to the financial statements. 28 65/289 Business-Type Activities KR Utility District Utility District #1 Somers Water Storm Water Utility (Non-major) Total ASSETS Current assets Cash and cash equivalents 649,204 $ 6,096,226 $ 542,867 $ 1,039,745 $ 8,328,042 $ Accounts receivable 15,663 570,068 419,499 1,790 1,007,020 Tax levy receivable from General Fund 11,449 109,109 66,900 359,044 546,502 Other receivables - 200,402 48,154 - 248,556 Special assessments - current - 1,480,729 791,089 - 2,271,818 Due from other funds 29,342 - - - 29,342 Prepaid expenses 807 6,067 4,061 - 10,935 Restricted cash - 86,352 75,571 - 161,923 Restricted investments - 65,346 18,807 - 84,153 Total current assets 706,465 8,614,299 1,966,948 1,400,579 12,688,291 Noncurrent assets Capital Assets: Land - - 39,000 - 39,000 Utility plant in service 7,138,767 41,012,103 33,077,886 601,541 81,830,297 Machinery and equipment - 2,362,526 1,319,971 - 3,682,497 Construction in progress - 32,732 348,790 - 381,522 Intangible assets - 37,026 23,366 - 60,392 Accumulated depreciation (1,422,842) (12,204,101) (5,693,364) (17,818) (19,338,125) Non-Capital Assets: Due from other funds - noncurrent 206,792 - - - 206,792 Special assessments - noncurrent - 1,767,070 946,532 - 2,713,602 Deferred special assessments 30,984 147,927 69,706 - 248,617 Net OPEB asset - - - 2,925 2,925 Total noncurrent assets 5,953,701 33,155,283 30,131,887 586,648 69,827,519 Total Assets 6,660,166 41,769,582 32,098,835 1,987,227 82,515,810 DEFERRED OUTFLOW OF RESOURCES Deferred outflows - pension 15,158 131,953 67,584 6,504 221,199 Deferred outflows - post-employment benefits 1,073 10,385 5,362 740 17,560 Total deferred outflows of resources 16,231 142,338 72,946 7,244 238,759 Total Assets and Deferred Outflows of Resources 6,676,397$ 41,911,920$ 32,171,781$ 1,994,471$ 82,754,569$ VILLAGE OF SOMERS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2025 See accompanying notes to the financial statements. 29 66/289 Business-Type Activities KR Utility District Utility District #1 Somers Water Storm Water Utility (Non-major) Total VILLAGE OF SOMERS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2025 LIABILITIES Current liabilities Accounts payable 38,030 $ 269,934 $ 132,597 $ 54,987 $ 495,548 $ Wages payable 1,211 11,602 6,057 904 19,774 Due to other funds - current - - 29,342 - 29,342 Accrued interest - 36,405 16,511 - 52,916 Current portion of long-term debt payable 630 1,041,352 559,264 426 1,601,672 Total current liabilities 39,871 1,359,293 743,771 56,317 2,199,252 Noncurrent liabilities Due to other funds - noncurrent - - 206,792 - 206,792 Net pension liability 2,397 21,260 10,874 1,123 35,654 Other post-employment benefits 32,842 108,674 95,365 - 236,881 General obligation debt payable 3,073 6,088,540 4,272,537 2,079 10,366,229 Total noncurrent liabilities 38,312 6,218,474 4,585,568 3,202 10,845,556 Total Liabilities 78,183 7,577,767 5,329,339 59,519 13,044,808 DEFERRED INFLOWS OF RESOURCES Deferred tax levy - - - 359,044 359,044 Deferred inflows - pension 7,039 62,436 31,934 3,299 104,708 Deferred inflows - post-employment benefits 4,382 42,504 21,909 3,067 71,862 Total deferred inflows of resources 11,421 104,940 53,843 365,410 535,614 Total liabilities and deferred inflows of resources 89,604 7,682,707 5,383,182 424,929 13,580,422 NET POSITION Net investment in capital assets 419,995 21,152,110 14,993,134 583,723 37,148,962 Unrestricted 6,166,798 13,077,103 11,795,465 985,819 32,025,185 Total Net Position 6,586,793$ 34,229,213$ 26,788,599$ 1,569,542$ 69,174,147$ See accompanying notes to the financial statements. 30 67/289 KR Utility District Utility District #1 Somers Water Storm Water Utility (Non-major) Total OPERATING REVENUES Charges for services 227,747 $ 2,945,452 $ 2,045,517 $ 334,670 $ 5,553,386 $ Miscellaneous operating revenue - 375 10,595 - 10,970 Total operating revenues 227,747 2,945,827 2,056,112 334,670 5,564,356 OPERATING EXPENSES Personnel 47,453 448,177 246,550 34,207 776,387 Materials and supplies 1,120 37,447 497,400 104,240 640,207 Contractual and other services 164,533 1,224,154 98,149 8,992 1,495,828 Miscellaneous operating expenses - 3,938 936 - 4,874 Depreciation 142,775 874,086 622,564 12,031 1,651,456 Total operating expense 355,881 2,587,802 1,465,599 159,470 4,568,752 Operating income (loss) (128,134) 358,025 590,513 175,200 995,604 NON-OPERATING REVENUES (EXPENSES) Investment income 11,398 7,668 26,936 - 46,002 Interest and fiscal charges - (169,169) (104,441) - (273,610) Special assessments - 44,942 - - 44,942 Miscellaneous revenue 1,101 19,702 29,055 - 49,858 Operating grants and contributions - - - 10,650 10,650 Miscellaneous expenses - (353) (156) - (509) Total non-operating revenue (expenses) 12,499 (97,210) (48,606) 10,650 (122,667) Income (loss) before capital contributions and transfers (115,635) 260,815 541,907 185,850 872,937 CAPITAL CONTRIBUTIONS AND TRANSFERS Connection fees - 60,200 - - 60,200 Capital contributions - 661,503 366,151 - 1,027,654 Transfers to other funds - (478,199) (287,796) - (765,995) Transfers from other funds - 599,066 141,540 - 740,606 Total contributions and transfers - 842,570 219,895 - 1,062,465 Change in net position (115,635) 1,103,385 761,802 185,850 1,935,402 Net position - Beginning of year 6,702,428 33,125,828 26,026,797 1,383,692 67,238,745 Total net position at end of year 6,586,793$ 34,229,213$ 26,788,599$ 1,569,542$ 69,174,147$ STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION VILLAGE OF SOMERS PROPRIETARY FUNDS For the Year Ended December 31, 2025 Business-Type Activities See accompanying notes to the financial statements. 31 68/289 Storm Water KR Utility Utility Somers District District District #1 Water (Non-major) Totals CASH FLOWS FROM OPERATING ACTIVITIES Received from customers 229,007$ 3,027,706$ 2,066,030$ 332,879$ 5,655,622$ Paid to suppliers for goods and services (179,347) (1,501,722) (600,945) (77,688) (2,359,702) Paid to employees (34,089) (113,011) (169,519) (23,665) (340,284) Cash Flows from Operating Activities 15,571 1,412,973 1,295,566 231,526 2,955,636 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund loans payments received (paid) 29,292 - (34,469) - (5,177) Transfers out - (367,418) (287,796) - (655,214) Miscellaneous income/(expense) 1,101 - 21,505 10,650 33,256 Cash Flows from Noncapital Financing Activities 30,393 (367,418) (300,760) 10,650 (627,135) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Debt retired - (1,029,776) (557,764) - (1,587,540) Interest paid - (169,024) (106,942) - (275,966) Special assessments - 384,491 241,888 - 626,379 Capital transfers - 428,069 141,540 - 569,609 Connection fees received - 60,200 - - 60,200 Acquisition and construction of capital assets - (517,720) (195,935) (337,080) (1,050,735) Cash Flows from Capital and Financing Activities - (843,760) (477,213) (337,080) (1,658,053) CASH FLOWS FROM INVESTING ACTIVITIES Interest income 11,398 5,443 12,809 - 29,650 C ash Flows from Investing Activities 11,398 5,443 12,809 - 29,650 Net Change in Cash and Cash Equivalents 57,362 207,238 530,402 (94,904) 700,098 Cash, Cash Equivalents, and Restricted Cash - Beginning of Year 591,842 5,975,340 88,036 1,134,649 7,789,867 Cash, Cash Equivalents, and Restricted Cash - End of Year 649,204$ 6,182,578$ 618,438$ 1,039,745$ 8,489,965$ VILLAGE OF SOMERS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2025 Business-type Activities See accompanying notes to the financial statements. 32 69/289 Storm Water KR Utility Utility Somers District District District #1 Water (Non-major) Totals VILLAGE OF SOMERS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2025 Business-type Activities RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating Income (Loss) (128,134)$ 358,025$ 590,513$ 175,200$ 995,604$ Adjustments to Reconcile Operating Income to Net Cash Flows from Operating Activities: Depreciation expense 142,775 874,086 622,564 12,031 1,651,456 Change in pension related assets, liabilities, and deferred outflows and deferred inflows - - - 802 802 Miscellaneous Revenue/Expense - (353) (156) - (509) Change in Other Post Employment Benefits (139) (3,743) (178) - (4,060) Changes in assets and liabilities: Accounts receivable 1,260 81,879 9,918 (26,165) 66,892 Prepaid items (258) (1,991) (1,343) - (3,592) Accounts payable and accrued expenses 67 105,070 74,248 69,658 249,043 NET CASH FLOWS FROM OPERATING ACTIVITIES 15,571$ 1,412,973$ 1,295,566$ 231,526$ 2,955,636$ NON-CASH INVESTING AND FINANCING ACTIVITIES: Assets contributed by developers -$ 661,503$ 366,151$ -$ 1,027,654$ Assets contributed by other funds -$ 60,215$ -$ -$ 60,215$ See accompanying notes to the financial statements. 33 70/289 ASSETS Cash and cash equivalents 3,487,998 $ Taxes receivable 8,794,684 Total Assets 12,282,682$ LIABILITIES Due to other governments 12,282,682 $ Total Liabilities 12,282,682$ VILLAGE OF SOMERS STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUND December 31, 2025 See accompanying notes to the financial statements. 34 71/289 Custodial Tax Collection Fund ADDITIONS Taxes Collected on Behalf of Other Taxing Entities 12,286,161$ DEDUCTIONS Taxes Remitted to Other Taxing Entities (12,286,161) CHANGE IN NET POSITION - NET POSITION - BEGINNING - NET POSITION - ENDING -$ VILLAGE OF SOMERS STATEMENT OF CHANGES IN NET POSITION - FIDUCIARY FUND For the Year Ended December 31, 2025 See accompanying notes to the financial statements. 35 72/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 36 INDEX TO NOTES TO FINANCIAL STATEMENTS NOTE Page I. Summary of Significant Accounting Policies 38 A. Reporting Entity 38 B. Government-Wide and Fund Financial Statements 39 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 42 D. Assets, Liabilities, and Net Position or Equity 46 1. Deposits and Investments 46 2. Receivables 47 3. Inventories and Prepaid Items 48 4. Restricted Assets 48 5. Capital Assets 49 6. Other Assets 49 7. Compensated Absences 50 8. Long-Term Obligations/Conduit Debt 50 9. Leases 51 10. Claims and Judgments 51 11. Equity Classifications 52 II. Reconciliation of Government-Wide and Fund Financial Statements 53 A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Statement of Net Position 53 B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-Wide Statement of Activities 53 III. Stewardship, Compliance, and Accountability 53 A. Budgetary Information 53 B. Governmental Funds - Excess Expenditures Over Appropriations 54 C. Deficit Balances 54 D. Limitations on the Village’s Tax Levy Rate and Its Ability to Issue New Debt 54 IV. Detailed Notes on All Funds 55 A. Deposits and Investments 55 B. Receivables 58 C. Capital Assets 60 D. Interfund Receivables/Payables and Transfers 62 E. Long-Term Obligations 63 F. Restricted Assets 69 G. Lease Disclosures 70 H. Governmental and Business-Type Activities Net Position 70 73/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 37 INDEX TO NOTES TO FINANC IAL STATEMENTS (continued) NOTE Page V. Other Information 73 A. Employees’ Retirement System 73 B. Other Postemployment Benefits (OPEB) 79 C. Risk Management 87 D. Commitments and Contingencies 88 E. Intergovernmental Agreement Between Town of Somers and Village of Somers 88 F. Incorporation and Classification of Town Related Revenue and Expenditures Into This Report 91 G. Subsequent Events 91 H. Upcoming Accounting Pronouncements 91 74/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 38 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Village of Somers, Wisconsin conform to generally accepted accounting principles as applicable to governmental units. The Town of Somers was formed in 1843. In J anuary, 2015, the Wisconsin Department of Administration approved the Incorporation application for a portion of the Town to become a Village. The Incorporation Referendum was approved by the voters and Wisconsin issued the Incorporation Certificate on April 24, 2015. This marked the beginning of the Village of Somers which coexists with the Town of Somers. On January 1, 2016, the incorporated Village portion began operations. A remnant of the Town of Somers remains. Please see Note V E . - Intergovernmental Agreement Between Town of Somers and Village of Somers for more detail. The scope of this audit report specifically covers the Village of Somers. For purposes of clarity in the notes, when the report refers to prior years’ information, the term “Village” will be used in place of “Town”. The Village Board is composed of seven Trustees which includes a President who is elected as provided by 61.20(1), Wisconsin Statutes. Each of the Board members are elected to a two-year staggered term. The Village provides the following services: public safety, public wo rks, public health and welfare, culture, recreation, planning and development, sewerage treatment and waterworks. A. R EPORTING ENTITY This report includes all of the funds of the Village. The reporting entity for the Village consists of (a) the primary government, (b) organizations for which the primary government is financially accountable, and (c) 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 or incomplete. A legally separate organization should be reported as a component unit if the elected officials of the primary government are financially accountable to the organization. The primary government is financially accountable if it appoints a voting majority of the organization's governing body and (1) it is able to impose its will on that organization or (2) there is a potential for the organization to provide specific financial benefits to or burdens on the primary government. The primary government may be financially accountable if an organization is fiscally dependent on the primary government. A legally separate tax exempt organization should be reported as a component unit of a reporting entity if all the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units or its constituents, (2) the primary government is entitled to or has the ability to otherwise access a majority of the economic resources received or held by the separate organization, and (3) the economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to or has the ability to otherwise access are significant to that primary government. This report does not contain any component units. 75/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 39 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. G OVERNMENT -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 non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. In addition to assets, the Statement of Net Po sition will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Village currently does have amounts that qualify for reporting in this category which are the amounts related to pension benefits and other post-employment benefits and the difference between the amount paid to the fund and the actuarially determined value. In addition to liabilities, the Statement of Net Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Village has various types of inflows that qualify for reporting in this category: property taxes, deferred leases receivable, deferred gain on debt refunding, other post-employment benefits, and pension liability. These amounts will be recognized as an inflow of resources in the subsequent years. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect expenses are allocated based on management estimates of employees’ time spent across the Village’s various functions. 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. 76/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 40 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. G OVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (continued) Fund Financial Statements Financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entities. Each fund is accounted for by providing a separate set of self- balancing accounts, which constitute its assets, deferred outflows, liabilities, deferred inflows, fund equity, revenues, and expenditures/expenses. 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. Funds are organized as major funds or non-major funds within the governmental, proprietary, and fiduciary 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 and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental fund or enterprise fund that met the 10 percent test is at least 5 percent of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or proprietary fund that the Village believes is particularly important to financial statement users may be reported as a major fund. The Village reports the following major governmental funds: Major Governmental Funds • General Fund – accounts for the Village’s primary operating activities. It is used to account for all financial resources except those required to be accounted for in another fund. • Debt Service Fund – accounts for resources accumulated and payments made for principal and interest on long-term debt other than enterprise debt. This includes the debt for the Village’s Tax Incremental Districts. • Capital Projects Fund – accounts for the Village’s ongoing capital projects. 77/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 41 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) B. G OVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (continued) Fund Financial Statements (continued) The Village reports the following major enterprise funds: Major Enterprise Funds • Utility District #1 – accounts for the sewer operations of the Village. • Somers Water Utility – accounts for water operations of the Village. • KR Utility District – accounts for the sewer operations of the Village. The Village reports the following non-major governmental and enterprise funds: Non-Major Governmental Funds • Capital Projects Funds (TIDs 1-11) - account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds accounts for resources legally restricted to supporting expenditures for capital projects. These funds account for all activity related to tax increment financing districts in Somers. • Special Revenue Funds – used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are:  Park Improvement  Drainage  American Rescue Plan Act Non-Major Enterprise Funds • Stormwater Utility Fund – accounts fo r the stormwater operations of the Village. The Village reports the following fiduciary funds: • Custodial Fund – The Village reports the funds that it holds for other governments related to the tax levy and collection in a custodial fund. 78/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 42 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. M EASUREMENT 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. Fund Financial Statements 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 of resources. 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. 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. 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 liab ility when expected to be paid with expendable available financial resources. 79/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 43 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. M EASUREMENT FOCUS , BASIS OF ACCOUNTING , AND FINANCIAL STATEMENT PRESENTATION (continued) Fund Financial Statements (continued) The revenues susceptible to accrual are ambulance services, franchise fees, and other fees for service. All other Governmental Fund type revenues are recognized when received. Property taxes are recorded in the year levied as receivables and deferred inflows of resources. 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 unearned revenue. Amounts received prior to the entitlement period are also recorded as unearned revenue. Special assessments are recorded as revenues when they become measurable and available as current assets. Annual installments due in the future years are reflected as receivables and deferred inflows of resources. Delinquent special assessm ents being held for collection by the Village are reported as receivables and nonspendable fund balance in the General Fund. Licenses and permits, fines, forfeitures and penalties, public charges for services and commercial revenues (except investment earnings), are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings and mobile home fees are recorded as earned since they are measurable and available. The Village reports deferred inflows of resources on its governmental funds balance sheet. Deferred inflows of resources arise from taxes levied in the current year which are for subsequent years’ operations. For governmental fund financial statements, unearned revenues arise when a potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues also arise when resources are received before the Village has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability for unearned revenue is removed from the balance sheet and revenue is recognized. The Village’s Tax Incremental Financing Districts were created under the provisions of Wisconsin Statute Section 66.1105. The purpose of that section is to allow a municipality to recover development and improvements costs in a designated area from the property taxes generated on the increased value of the property after the creation date of the district. That tax on the increased value is called a tax increment. Project costs may not be incurred longer than 5 years prior to the termination date of the district. The statutes allow the municipality to collect tax increments until the net project cost has been fully recovered, or maximum life based on the resolution date and type of District, whichever occurs first. Project costs uncollected at the dissolution date are absorbed by the municipality. 80/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 44 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. M EASUREMENT FOCUS , BASIS OF ACCOUNTING , AND FINANCIAL STATEMENT PRESENTATION (continued) Fund Financial Statements (continued) TID #1 was created in 2015 as an industrial district, with estimated projects costing $12.6 million expected to increase the base value of the District of $476,300 by between $75-150 million over the span of the project. The current valuation of th e District is $124.3 million, and project costs to date amount to $9.4 million as of December 31, 2025. TID #2 was created in 2015 as a mixed-use district, with estimated projects costing $9.5 million expected to increase the base value of the Distri ct of $5,810,800 by approximately $57.5 million over the span of the project. The current valuation of the District is $149.3 million, and project costs to date amount to $7.32 million as of December 31, 2025. TID #3 was created in 2018 as a mixed-use district, with estimated projects costing $26.1 million expected to increase the base value of the District of $1,779,800 by approximately $129.1 million over the span of the project. The current valuation of the District is $161.7 million, and project costs to date amount to $4.92 million as of December 31, 2025. TID #4 was created in 2018 as a mixed-use district, with estimated projects costing $8.2 million expected to increase the base value of the Distri ct of $1,767,500 by approximately $61.1 million over the span of the project. The current valuation of the District is $61.8 million, and project costs to date amount to $1.46 million as of December 31, 2025. TID #5 was created in 2018 as a mixed-use district, with estimated projects costing $14.5 million expected to increase the base value of the Distri ct of $1,148,400 by approximately $85.9 million over the span of the project. The current valuation of the District is $24.9 million, and project costs to date amount to $678,000 as of December 31, 2025. TID #6 was created in 2018 as a mixed-use district, with estimated projects costing $22.1 million expected to increase the base value of the Distri ct of $2,894,000 by approximately $68.3 million over the span of the project. The current valuation of the District is $23 million, and project costs to date amount to $8.88 million as of December 31, 2025. TID #7 was created in 2018 as a mixed-use district, with estimated projects costing $69.5 million expected to increase the base value of the District of $8,364,800 by approximately $296.3 million over the span of the project. The current valuation of the District is $15.6 million, and project costs to date amount to $55,000 as of December 31, 2025. TID #8 was created in 2018 as a mixed-use district, with estimated projects costing $11.1 million expected to increase the base value of the District of $362,100 by approximately $49.4 million over the span of the project. The current valuation of the District is $522,600, and project costs to date amount to $3.14 million as of December 31, 2025. 81/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 45 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. M EASUREMENT FOCUS , BASIS OF ACCOUNTING , AND FINANCIAL STATEMENT PRESENTATION (continued) Fund Financial Statements (continued) TID #9 was created in 2018 as a mixed-use district, with estimated projects costing $1.2 million expected to increase the base value of the District of $2,081,700 by approximately $7.7 million over the span of the project. The current valuation of the District is $4.4 million, and project costs to date amount to $21,000 as of December 31, 2025. TID #10 was created in 2018 as a mixed-use district, with estimated projects costing $1.9 million expected to increase the base value of the District of $3,219,200 by approximately $6.5 million over the span of the project. TID #10 has been terminated, and the final audit was completed in 2025. TID #11 was created in 2018 as a mixed-use district, with estimated projects costing $8.3 million expected to increase the base value of the District of $195,100 by approximately $27 million over the span of the project. The current valuation of the District is $374,900, and project costs to date amount to $24,000 as of December 31, 2025. The Proprietary and Fiduciary Fund types are accounted for on an economic resources measurement focus using the accrual basis of accounting. Revenues are recorded when they are earned or able to be calculated, including unbille d water and sewer services which are accrued. Expenses are recorded at the time liabilities are incurred. The proprietary funds have elected to follow all pronouncements of the Governmental Accounting Standards Board and have elected not to follow Financial Accounting Standards Board guidance issued after November 30, 1989. 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 Village’s proprietary funds are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 82/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 46 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. A SSETS , LIABILITIES , AND NET POSITION OR EQUITY 1. 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. Wisconsin Statutes restrict t he investments of the Village to:  Time deposits in financial institutions  Securities issued or guaranteed by the Federal government  Municipal obligations of Wisconsin entities  State of Wisconsin Local Government Pooled Investment Fund  Repurchase agreements which are secured by securities issued or guaranteed by the Federal government  Securities maturing in seven years or less and having the highest or second highest rating category of nationally recognized rating agency  Securities of open-end management investment companies or investment trusts if the portfolio is limited to specified securities No significant violations of these restrictions occurred during the year. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on quoted market prices. No investments are reported at amor tized 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 accounting funds is allocated based on average balances. The difference between the bank 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 IV A. for further information. 83/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 47 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. A SSETS , LIABILITIES , AND NET POSITION OR EQUITY (continued) 2. Receivables Wisconsin cities, villages, and towns are charged with the res ponsibility of assessing taxable property, collecting taxes, and making distributions to counties, school districts and other public bodies, including sanitary districts. All assessments are made as of January 1 st. Taxes on real and personal property are levied in December of each year by the Village of Somers in the amounts that when collected in the ensuing year, along with revenues, are sufficient to cover operating expenses, debt service, and other expenditures of the Village. The Village’s taxpayers have two options for the payment of their real estate taxes. One option is to pay the total amount of taxes due by January 31 st. The other option is to utilize an installment plan whereby one-half of real estate taxes plus total special assessments must be paid by January 31 st. The second and final payment must be made not later than July 31 st. Taxes unpaid by July 31 st become delinquent and are turned over to the county for collection. Personal property taxes are due on or before January 31 st. Initially, all taxes are collected by city, village, and town treasurers who then make settlements with counties, school districts, and other public bodies including sanitary districts. Kenosha County settles with the Village for all real estate taxes due and payable by January 31 st. The Village receives a portion of their real estate levy in February, except for the amount of taxes that have been postponed for payment in July. These postponed taxes are paid to Kenosha County no later than July 31 st and the Village receives these funds in August. The Village has the right under the Wisconsin Statutes to place delinquent water and sewer bills on the tax rolls for collection. No allowance for uncollectible accounts is considered necessary at year end. Property tax calendar - 2025 tax roll: Lien date and levy date December 2025 Tax bills mailed December 2025 Payment in Full, or First installment due January 31, 2026 Second installment due July 31, 2026 Personal property taxes in full January 31, 2026 Tax settlement with Village: First settlement January 15, 2026 Second settlement February 20, 2026 Final settlement August 15, 2026 84/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 48 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. A SSETS , LIABILITIES , AND NET POSITION OR EQUITY (continued) 2. Receivables (continued) 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 government-wide financial statements as “internal balances.” 3. Inventories and Prepaid Items Inventories are generally used for construction and the operation and maintenance work and not for resale. They are valued at lower of cost or market based on average prices and charged to construction, operation, and maintenance expense when used. Prepaid balances are for the payments made by the Village in the current year to provide services occurring in the subsequent fiscal year, and the reserve to prepaid items has been recognized to signify that a portion of the fund balance is not available for other subsequent expenditures. 4. Restricted Assets The General Fund has restricted assets in the amount of $26,563 on December 31, 2025. These funds are to be used for costs that arise after the land has been developed at Somers Market. Special Revenue Funds were established to account for impact fees, as required by state statutes, in order to provide funds which may be necessary to pay for capital costs that are required to accommodate land development. At year end, the restricted cash amount in the Drainage Fund was $54,332. Another Special Revenue Fund, the Park Fund, was established by contract between the Village and developers to accumulate impact fees necessary to pay for engineering, construction, and legal fees incurred during land development. At year end, restricted cash of $69,355 was held in the Park Fund. As a requirement of the Village’s Bonds, total restricted cash and investments for bond reserves of $786,625 was allocated out of the General Fund for debt service. Of this amount, $128,601 is allocated to debt service for Tax Incremental District #1, $280,287 is allocated to debt service for Tax Incremental District #2, $96,686 is allocated to Tax Incremental District #3, $118,948 is allocated to the KR Sewer Fund, $86,352 is allocated to the Utility District #1, and $75,571 is allocated to the Somers Water Fund. 85/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 49 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. A SSETS , LIABILITIES , AND NET POSITION OR EQUITY (continued) 5. Capital Assets Government-Wide Financial Statements In the government-wide financial statements, fixed assets are accounted for as capital assets. Capital assets are defined by the government as assets with an initial cost of more than $5,000 for general capital assets and infrastructure assets, and an estimated useful life based on the asset type. All capital assets are valued at historical cost, or estimated historical cost, if actual amounts are unavailable based on the records of the Village. Donated fixed assets are recorded at their estimated fair 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, overhead, and an allowance for the cost of funds used during construction when significant. 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 of all exhaustible fixed assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Buildings 50-100 Years Land Improvements 20 Years Machinery and Equipment 5-40 Years Infrastructure 15-50 Years Fund Financial Statements In the fund financial statements, fixed assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Fixed assets used in proprietary fund operations are accounted for the same as in the government-wide statements. 6. Other Assets In governmental funds, debt issuance costs are recognized as expenditures in the current period. 86/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 50 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. ASSETS , LIABILITIES , AND NET POSITION OR EQUITY (continued) 7. Compensated Absences Under terms of employment, employees are granted sick leave/casual days and vacation days in varying amounts. Seventy-five percent of all unused accumulated sick leave/casual days will be paid to the employee upon termination of employment with the Village, up to a maximum of 90 days and/or 720 hours. No more than 90 days of sick leave/casual days may be accumulated. Vacation days can be carried over into the next year and must be used within the first quarter of the following year. For employees represented under a contract, vacation benefits are subject to the terms of the Collective Bargaining Agreement. Vacation and casual days are accrued when incurred in the government-wide, proprietary, and fiduciary 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, or are payable with expendable available resources. Accumulated liabilities at December 31, 2025 are determined on the basis of current salary rates and salary-related payments. 8. Long-Term Obligations/Conduit Debt All long-term debt to be repaid from governmental and business-type resources is reported as liabilities in the government-wide statements. The long-term debt consists primarily of notes and bonds payable as well as other postemployment benefits and vested vacation and sick days. Long-term debt for governmental funds is not report ed as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources. The 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 deferred and amortized over the life of the issue using the effective interest method. Gains or losses on prior refundings are amortized over the remaining life of the old debt, or the life of the new debt whichever is shorter. The balance at year end for both premiums/discounts and gains/losses, as applicable, is shown as an increase or decrease in the liability section of the balance sheet. The Village does not engage in conduit debt transactions. 87/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 51 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. A SSETS , LIABILITIES , AND NET POSITION OR EQUITY (continued) 9. Leases The Village is lessor for various space and equipment. The Village determines if an arrangement is a lease at inception. Leases are included in lease receivables and deferred inflows of resources in the statement of net position and fund financial statements. Lease receivables represent the Village’s claim to receive lease payments over the lease term, as specified in the contract, in an exchange or exchange-like transaction. Lease receivables are recognized at commencement date based on the present value of expected lease payments over the lease term. Interest revenue is recognized ratably over the contract term. Deferred inflows of resources related to leases are recognized at the commencement date based on the initial measurement of the lease receivable, plus any payments received from the lessee at or before the commencement of the lease term that relate to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. The deferred inflows related to leases are recognized as lease revenue in a systematic and rational manner over the lease term. Amounts to be received under residual value guarantees that are not fixed in substance are recognized as a receivable and an inflow of resources if (a) a guarantee payment is required and (b) the amount can be reasonably estimated. Amounts received for the exercise price of a purchase option or penalty for lease termination are recognized as a receivable and an inflow of resources when those options are exercised. The Village recognizes payments received for short-term leases with a lease term of 12 months or less, including options to extend, as revenue as the payments are received. These leases are not included as lease receivables or deferred inflows on the statements of net position and fund financial statements. The individual lease contracts do not provide information about the discount rate implicit in the lease. Therefore, the Village has elected to use its incremental borrowing rate to calculate the present value of expected lease payments. 10. Claims and Judgments 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 in curred. See Note V D. on commitments and contingencies. 88/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 52 NOTE I – S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) D. A SSETS , LIABILITIES , AND NET POSITION OR EQUITY (continued) 11. Equity Classifications Government-Wide Financial Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets – includes the Village’s capital assets (net of accumulated depreciation) reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position – includes assets that have third party (statutory, bond covenant, or granting agency) limitations on their use. The Village typically uses restricted assets first, as appropriate opportunities arise, but reserves the right to selectively defer the use until a future project. c. Unrestricted net position – typically includes unrestricted liquid assets. The Village has the authority to revisit or alter this designation. 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 Financial Statements Governmental fund equity is classified as fund balance. GASB 54 requires the fund balance amounts to be reported in the following categories: a. Nonspendable – Amounts that cannot be spent either because they are in a nonspendable form, or because they are legally or contractually required to be maintained intact. b. Restricted – Amounts that can be spent only for the specific purpose stipulated by constitution, external resource providers, or through enabling legislation. c. Committed – Amounts that can be used only for the specific purpose determined by a formal action or resolution of the Board of Trustees (the Village’s highest level of decision-making authority). d. Assigned – Amounts that are intended to be used for a particular purpose expressed by the Board or other authorized committee or individual. e. Unassigned – All amounts not included in other spendable classifications. The Village’s policy is to use fund balances in the following order: restricted, committed, assigned, and unassigned. The Village has adopted a policy requiring the General Fund to have at least 17% of its operating expenditures in reserve. The Village met this policy during the year. Proprietary fund equity is classified the same as in the government-wide statements. 89/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 53 NOTE II – RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS A. E XPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide Statement of Net Position. One el ement of that reconciliation expl ains that “long-term liabilities applicable to the Village’s governmental activities are not due and payable in the current period, and accordingly, are not reported as fund liabilities.” All liabilities, both current and long-term, are reported in the Statement of Net Position. B. E XPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES , EXPENDITURES , AND CHANGES IN FUND BALANCES AND THE GOVERNMENT - WIDE STATEMENT OF ACTIVITIES The governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide Statement of Activities. One element of that reconciliation states that “bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position.” Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities on the Statement of Net Position. This is the amount by which repayments exceeded debt issued. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. NOTE III – STEWARDSHIP , COMPLIANCE , AND ACCOUNTABILITY A. B UDGETARY 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 I . A budget has been adopted for the general fund, special revenue funds, debt service fund, and capital projects funds and comparisons of actual to budget for the general fund is presented in the general-purpose financial statements. Budgetary comparisons are not required for proprietary funds. The budgeted amounts presented include any amendments made. Board approvals are required to transfer budgeted amounts within departments, between departments, or changes to the overall budget. Appropriations lapse at year-end unless specifically carried over. 90/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 54 NOTE III – STEWARDSHIP , COMPLIANCE , AND ACCOUNTABILITY B. G OVERNMENTAL FUNDS - EXCESS EXPENDITURES OVER APPROPRIATIONS The Village controls expenditures at the appropriation unit level. The detail of those items can be found in the Village‘s year end budget to actual report. In 2025, the General Fund had total expenditures in excess of budget amounting to $30. Within the General Fund, the Village had the following appropriations over budget: Appropriation Amount Over Budget Reason General government 30$ Additi onal municipal services required Public safety 41,765 Due to capital outlays for public safety C. D EFICIT BALANCES Generally accepted accounting principles require disclosure of individual funds that have deficit balances at year end. The following funds have deficit fund balances as of December 31, 2025: Fund Deficit Balance Reason Tax Incremental District #2 16,052$ Tax Incremental District #3 421,807 Tax Incremental District #4 1,262,404 Tax Incremental District #5 317,922 Tax Incremental District #7 28,799 Tax Incremental District #8 610,945 Tax Incremental District #9 20,755 Tax Incremental District #11 24,155 Tax Incremental District deficits are anticipated to be funded with future incremental taxes levied over the life of the district. The capital projects fund is anticipated to be supported by future transfers and/or debt issuances. D. L IMITATIONS ON THE VILLAGE ’S TAX LEVY RATE AND ITS ABILITY TO ISSUE NEW DEBT Wisconsin state statutes provide for a limit on the property tax levies for all Wisconsin cities , villages, towns and counties. For the 2025 and 2024 budget years, the increase in the maximum allowable tax levy is limited to the percentage change in the Village 's January 1 equalized value as a result of net new construction. Debt service for debt authorized after July 1, 2005 is exempt from the levy limit. In addition, Wisconsin statutes allow the limit to be adjusted for the increase in debt service authorized prior to July 1 , 2005 and in certain other situations. The Village is in compliance with the limitation. 91/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 55 NOTE IV – DETAILED NOTES ON ALL FUNDS A. D EPOSITS AND INVESTMENTS Cash and cash equivalent balances as disclosed on the accompanying financial statements are comprised of the following: Unrestricted Restricted Total Petty cash 1,340$ -$ 1,340$ Demand deposits Interest bearing 18,717,672 492,539 19,210,211 Non-interest bearing - - - Other cash 9,291,338 157,649 9,448,987 Fiduciary Tax deposits - 3,487,998 3,487,998 Total cash and cash equivalents 28,010,350$ 4,138,186$ 32,148,536$ Per statement of net position - cash and cash equivalents 28,010,350$ Per statement of net position - restricted cash and cash equivalents 650,188 Per statement of fiduciary net position - cash and cash equivalents 3,487,998 32,148,536$ Deposits with financial institutions within the State of Wisconsin are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for the combined amount of all time and savings deposits and $250,000 for interest-bearing and noninterest-bearing demand deposits per official custodian per insured depository institution. Deposits with financial institutions located outside the State of Wisconsin are insured by the FDIC in the amount of $250,000 for the combined amount of all deposit accounts per official custodian per depository institution. Also, the State of Wisconsin has a State Guarantee Fund which provides a maximum of $400,000 per public depository above the amount provided by an agency of the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in relation to the Fund's total coverage, total recovery of insured losses may not be available. Wisconsin Local Government Investment Pool (LGIP) The Village has investments in LGIP of $9,448,986 at year end. The 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 carrying value. 92/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 56 NOTE IV – DETAILED NOTES ON ALL FUNDS (continued) A. D EPOSITS AND INVESTMENTS (continued) Deposits in the local government investment pool (LGIP) are pooled along with the deposits of all of the LGIP participants. The balance in the LGIP represents a pro-rated share of the total investments in the LGIP portfolio, meaning that the LGIP balance is insured to the same extent that the entire LGIP portfolio is insured. As of December 31, 2025, 97.00% was invested in various US Government investments which are backed by the federal government and not insured; and 3.00% was invested in various certificates of deposits and banker’s acceptance notes which are guaranteed by the state deposit guarantee fund up to their insurance limitations. Fluctuating cash flows during the year due to tax collections, receipt of state aids and/or proceeds from borrowing may have resulted in uninsured balances during the year significantly exceeding uninsured amounts at year end. The Village maintains cash deposits within the LG IP. The deposit and investment balances of the various fund types on December 31, 2025 were as follows: Local Government Investment Pool General Fund 9,303,309 $ Park Fund 69,355 Drainage 54,332 Utility District #1 7,399 Water Fund 14,591 9,448,986$ The Village has not formally adopted a deposit and investment policy but follows the requirements of the Wisconsin State statutes. Deposits – Custodial Credit Risk Custodial credit risk is the risk that in the event of the failure of the custodian holding the Village’s deposits, the deposits may not be returned. At December 31, 2025, the reported amount of the Village’s deposits, including LGIP, was $32,147,196 and the bank balance, including LGIP, was $31,221,611. Of this balance, $14,503,788 was not covered by federal depository insurance, collateralized securities, or by the Wisconsin insurance program. In addition, the Village maintained petty cash funds in the amount of $1,340. The Village does not have a policy related to credit risk and believes it is not exposed to any major risk of loss in relation to its deposits. Investments As of December 31, 2025, the Village held $5,631,621 in investments (including $438,613 of restricted investments). All investments are reported at fair va lue. Investments with an original maturity greater than three months and remaining maturities less than one year are classified as short-term investments. Securities and similar investments that can be converted to cash are classified as current investments. The LGIP investments that can be converted to cash are considered cash and cash equivalents. 93/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 57 NOTE IV – DETAILED NOTES ON ALL FUNDS (continued) A. D EPOSITS AND INVESTMENTS (continued) Generally accepted accounting princi ples (GAAP) define the term fair value, establishes a framework for measuring it within generally accepted accounting principles, and expands disclosures about its measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Village has categorized its financial instruments based on the priority of the inputs to the valuation techniques, into a three-level value hierarchy. GAAP establishes a hierarchy of valuation inputs based on the extent to which the inputs are observable in the marketplace. All assets have been valued using a market approach. The three levels of inputs are as follows: Level 1 Fair Value Measurements Fair Values are based on quoted prices (unadjusted) in active markets for identical assets that the Village has the ability to access at the measurement date (e.g. prices derived from NYSE, NASDAQ, or Chicago Board of Trade). Level 2 Fair Value Measurement Fair Values are based on inputs other than quoted price included in Level 1 that are observable for valuing the asset or liability, either directly or indirectly (i.e. interest rate and yield curves observable at commonly quoted intervals, default rates, etc.). Observable inputs include quoted price for similar assets or liabilities in active or non-active markets. Level 2 inputs may also include insignificant adjustments to market observable inputs. Level 3 Fair Value Measurements Fair Values are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Unobservable inputs are those that reflect the Village’s own assumptions about the assumptions that market participant would use in pricing the asset, based on the best information available in the circumstances. An example could be real estate valuations, which require significant judgment. The Village’s investments are reported as follows in the fair value hierarchy: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. Government Fixed Income Securities 5,105,793$ 5,105,793 $ -$ -$ Certificates of Deposit 525,828 - 525,828 - Total 5,631,621$ 5,105,793$ 525,828$ -$ Fair Value Measurements at Reporting Date Using: 94/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 58 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) A. D EPOSITS AND INVESTMENTS (continued) Interest Rate Risk As a means of limiting exposure to losses arising fr om changes in market interest rates, the Village structures the portfolio so that they mature to meet ongoing operation requirements, thereby avoiding the need to sell prior to maturity. Investment maturities were as follows for the year ended December 31, 2025: Investment Type Fair Value Less than 1 1-5 6-10 More Than 10 U.S. Government Fixed Income Securities 5,105,793$ 5,105,793$ -$ -$ -$ Certificates of Deposit 525,828 525,828 - - - 5,631,621$ 5,631,621$ -$ -$ -$ Investment Maturities (in Years) Credit Risk The Village has deposits in the Local Government Investment Pool which is not rated. The remainder of the Village’s investments consists of federal government securities, certificates of deposit (which are FDIC insured), and money market funds which are invested in US Treasuries. Custodial Credit Risk Custodial credit risk for investments is the risk that, in an event of failure of the financial institution (e.g. broker-dealer), a government will not be able to cover the value of investments. With respect to investments held, securities in accounts are protected in accordance with the Securities Investor Protection Act of 1970 up to $500,000, including cash claims limited to $250,000. As of December 31, 2025, all of the Village’s security investments were in securities backed by the full faith and credit of the U.S. government. B. R ECEIVABLES Accounts Receivable In the governmental funds, fire and ambulance revenues, and general gov ernment services revenue of the Village are reported net of uncollectible amounts. Gross governmental receivables related to these revenues were $1,400,804. Total uncollectible amounts related to these receivables were $1,061,604, resulting net collectible receivables of $339,200 at year -end. Business type revenues from water and sewer services provided are also reported net of uncollectible amounts. The Village estimates that the receivable balance of $1,007,020 is fully collectible, and no allowance for uncollectible amounts has been reported. 95/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 59 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) B. R ECEIVABLES Special Assessments In the governmental funds, the Village reported $631,339 for non-current special assessments receivable. In the proprietary funds, deferred special assessments of $248,617 are recorded net of the uncollectible amount of $220,362. In 2022, the Village assessed the cost of certain water and sewer improvement s within the TIDs to the benefitting properties. Assessments totaled $9,123,998, were recognized in the Water and Sewer Funds in 2022 and are to be collected in equal installments over the 10-year period following the assessment. The Village believes the outstanding balance of $4,985,420 is fully collectible and has not recorded an allowance for uncollectible amounts. Of the amounts assessed, $2,271,818 is due to be collected within one year. Leases The Village leased a tower and farm land under long-term lease agreements. The terms of these lease agreements are detailed in Note IV.G. The Village’s incremental borrowing rate of 2.73% has been used to calculate interest on the cell tower and 2.31% on the farm land leases receivable. No allowance for uncollectible leases has been recorded, as the payments are considered to be fully collectible. Future lease payments are to be received as follows: Year Ending Principal Interest Total 12/31/2026 14,931$ 21,926 $ 36,857 $ 12/31/2027 8,627 21,550 30,177 12/31/2028 9,768 21,314 31,082 12/31/2029 10,967 21,047 32,014 12/31/2030 12,227 20,748 32,975 2031-2035 82,335 97,984 180,319 2036-2040 124,487 84,551 209,038 2041-2045 177,540 64,793 242,333 2046-2050 243,832 37,098 280,930 2051-2055 119,580 4,943 124,523 Total 804,294$ 395,954 $ 1,200,248 $ 96/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 60 NOTE IV – DETAILED NOTES ON ALL FUNDS (continued) C. C APITAL ASSETS The valuation of the Village’s fixed assets of the governmental funds is based on historical costs and an inventory done by the staff. The additions column represents the new assets in 2025. The deletions column represents the assets that were discarded in 2025. Capital asset valuation for the year ended December 31, 2025 was as follows: Beginning Ending Balance Additions Deletions Balance Governmental Activities Capital Assets not being depreciated: Land 1,143,695 $ - $ - $ 1,143,695$ Land Improvements 4,106,310 79,621 (79,621) 4,106,310 Total Capital Assets not being depreciated 5,250,005 79,621 (79,621) 5,250,005 Other Capital Assets: Land Improvements 822,267 - - 822,267 Buildings 6,592,863 - - 6,592,863 Machinery & Equipment 7,824,970 69,729 (1,056,290) 6,838,409 Intangible Assets 60,015 - - 60,015 Infrastructure 11,981,489 502,326 (238,864) 12,244,951 Total Other Capital Assets at Historical Cost 27,281,604 572,055 (1,295,154) 26,558,505 Less: Accumulated Depreciation (14,882,257) (1,062,290) 1,295,154 (14,649,393) Net Total Other Capital Assets 12,399,347 (490,235) - 11,909,112 Net Total Government Activities Capital Assets 17,649,352$ (410,614) $ (79,621) $ 17,159,117$ Add: Net book value of fixed assets reported in Proprietary Funds and paid for by Governmental Funds 17,598,101 $ Less debt related to capital assets (18,264,465) Net investment in capital assets for government- wide statements 16,492,753 $ Depreciation expense was charged to functions as follows: Governmental A ctivities General Government 100,676 $ Public Safety 438,780 Public Works 512,419 Leisure Activities 10,415 Total Governmental Activities - Depreciation Expense 1,062,290$ 97/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 61 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) C. C APITAL ASSETS (continued) Beginning Ending Balance Additions Deletions Balance Business-Type Activities Capital Assets not being depreciated: Land 4,000 $ 35,000 $ - $ 39,000$ Intangible Assets 21,660 - - 21,660 Construction in Progress 536,559 880,735 (1,035,772) 381,522 Total Capital Assets not being depreciated 562,219 915,735 (1,035,772) 442,182 Other Capital Assets: Utility Plant in Service 79,874,785 1,955,512 - 81,830,297 Machinery & Equipment 3,457,236 261,886 (36,625) 3,682,497 Intangible Asset - Software 38,733 - - 38,733 Total Other Capital Assets at Historical Cost 83,370,754 2,217,398 (36,625) 85,551,527 Less: Accumulated Depreciation (17,723,295) (1,651,456) 36,625 (19,338,126) Net Total Other Capital Assets 65,647,459 565,942 - 66,213,401 Net Total Business-Type Activities Capital Assets 66,209,678$ 1,481,677 $ (1,035,772) $ 66,655,583 $ Less: Net book value of fixed assets reported in Proprietary Funds and paid for by Governmental Funds (17,598,101) $ Less debt related to capital assets (11,908,520) Net inv estment in capital assets for gov ernment- wide statements 37,148,962 $ Depreciation expense was charged to functions as follows: Business - Type Activities Utility District #1 874,086$ Somers Water Utility 622,564 KR Utility District 142,775 Storm Water District 12,031 Total Business - Type Activities Depreciation Expense 1,651,456$ 98/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 62 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) D. I NTERFUND RECEIVABLES /PAYABLES AND TRANSFERS The interfund balances shown below reflect a long-term loan formalized between the funds due to major projects completed in prior years not funded by external debt. The Water Fund borrowed $584,372 from the KR Utility District with an interest rate of 0.17% to be repaid over 20 years with a maturity date of 2033. As of December 31, 2025, the balance is $236,134. Principal Interest For Year Ending December 31, 2026 29,342$ 401 $ 2027 29,391 352 2028 29,441 302 2029 29,491 252 2030 29,542 201 2031-2033 88,926 303 236,134$ 1,810 $ The following is a schedule of interfund receivables and payables other than the loan noted above. Fund Inter-fund Cash Inter-fund Taxes Total General Fund 3,790,099$ (8,695,441) $ (4,905,342) $ Debt Service - 8,129,098 8,129,098 TID #1 - 19,842 19,842 TID #3 (1,497,366) - (1,497,366) TID #4 (1,257,068) - (1,257,068) TID #5 (343,280) - (343,280) TID #7 (28,799) - (28,799) TID #8 (618,676) - (618,676) TID #9 (20,755) - (20,755) TID #11 (24,155) - (24,155) Water Utility - 66,900 66,900 KR Utility Dist. - 11,449 11,449 Utility Dist. #1 - 109,109 109,109 Storm Water Utility - 359,043 359,043 -$ -$ -$ Amount due from (to) other funds All of these balances will be repaid within the year. All 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. For the Statement of Net Position, interfund balances which are owed within the governmental activities or business-type activities are netted and eliminated. Amounts owed between governmental and business-type activities are shown as “internal balances” on the Statement of Net Position. 99/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 63 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) D. I NTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (continued) 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. The following are transfers for 2025: Fund In Out Reason General Fund - $ (514,757)$ Fund capital projects General Fund 80,671 - Close TID 10 Capital Projects Fund 527,375 - Fund capital improvements Debt Service Fund - (7,665) TID #2 Debt Service Payments ARPA Fund - (6,200) Fund capital improvements TID #1 43,567 - Fund TID development TID #2 - - TID #2 Debt Service Payments TID #3 147,872 - Fund TID development TID #6 480,864 - Fund TID development TID #8 88,738 (734,405) Fund TID development TID #10 - (80,671) Close TID 10 Utility District #1 599,066 (478,199) Fund TID development Water Fund 141,540 (287,796) Fund TID development E. L ONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2025 was as follows: Amounts Beginning Ending Due Within Balance Increases Decreases Adjustment Balance One Year Governmental Activities Bonds and Notes Payable: General Obligation Bond 6,396,930$ -$ 880,358$ -$ 5,516,572$ 890,141$ 6,745,000 - 520,000 - 6,225,000 570,000 Revenue Bonds 5,130,000 - 345,000 - 4,785,000 345,000 Promissory Note 1,011,617 - - - 1,011,617 - Add/(Subtract) Deferred Amounts For: (Discounts)/Premiums 483,174 - 45,174 - 438,000 - Total Bonds and Notes Payable 19,766,721 - 1,790,532 - 17,976,189 1,805,141 Other Liabilities: Post Retirement Benefits 1,750,736 17,295 78,093 - 1,689,938 - Vested Vacation and Sick Days 258,113 129,527 99,364 - 288,276 112,172 Developer Reimbursement Obligation 11,239,718 - 611,647 - 10,628,071 - Total Other Liabilities 13,248,567 146,822 789,104 - 12,606,285 112,172 Total G overnmental Activities- 33,015,288$ 146,822$ 2,579,636$ -$ 30,582,474$ 1,917,313$ Long-Term Liabilities General Obligation Corporate Purpose 100/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 64 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) E. L ONG TERM OBLIGATIONS (continued) Beginning Ending Due Within Balance Increases Decreases Adjustment Balance One Year Business-Type Activities Bonds and Notes Payable: General Obligation Bond 4,188,070$ -$ 1,219,642$ -$ 2,968,428$ 1,214,859$ Revenue Bonds 9,138,234 - 367,899 - 8,770,335 376,374 Add/(Subtract) Deferred Amounts For: Premium (Discounts) 197,009 - 27,253 - 169,756 - Total Bonds and Notes Payable 13,523,313 - 1,614,794 - 11,908,519 1,591,233 Other Liabilities: Post Retirement Benefits 258,960 815 22,894 - 236,881 - Vested Vacation and Sick Days 47,857 19,948 8,423 - 59,382 10,439 Total Other Liabilities 306,817 20,763 31,317 - 296,263 10,439 Total Business-Type Activities- 13,830,130$ 20,763$ 1,646,111$ -$ 12,204,782$ 1,601,672$ Long-Term Liabilities G ENERAL OBLIGATION DEBT All general obligation notes and bonds payable are backed by the full faith and credit of the Village. Notes and bonds in the governmental funds will be retired by future property tax levies accumulated by the debt service fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues are not sufficient, by future tax levies. In accordance with Wisconsin Statutes, total general obligation indebtedness of the Village and Town may not exceed five percent of the equalized value of taxable property within the Village and Town’s jurisdiction. The debt limit as of December 31, 2025, was $93,496,200. The Village’s legal margin for creation of additional general obligation debt on December 31, 2025 was $78,786,200 as follows: Equalized valuation of the Village 1,869,924,000$ Statutory limitation percentage (x) 5% General obligation debt limitation, per Section 67.03 of the Wisconsin Statutes 93,496,200 Net outstanding general obligation debt applicable to debt limitation (14,710,000) Legal margin for new debt 78,786,200$ The Village is not obligated in any manner for special assessment debt. 101/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 65 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) E. L ONG TERM OBLIGATIONS (continued) G ENERAL OBLIGATION DEBT (continued) General obligation debt currently outstanding is detailed as follows: Date of Final Interest Original Balance Issue Maturity Rates Indebtedness 12/31/25 Governmental Activities - General Obligation Debt General Obligation Refunding Bond 2015 2026 2.00 - 3.50% 199,220 $ 34,850 $ General Obligation Corporate Purpose Bonds 2016 2036 2.00 - 3.00% 5,170,000 2,930,000 General Obligation Refunding Bond 2017 2027 2.02% 4,364,002 286,722 General Obligation Refunding Bond 2018 2036 3.15% - 4.5% 1,675,000 1,100,000 General Obligation Refunding Bond 2020 2030 2.00% 1,660,000 735,000 General Obligation Refunding Bond 2021 2041 0.30% - 3.00% 5,080,000 3,875,000 General Obligation Refunding Bond 2023 2033 4.00%-5.00% 3,435,000 2,780,000 Total Governmental Activities - General Obligation Debt 11,741,572 $ Business type activities debt service requirements to maturity are as follows: Date of Final Interest Original Balance Issue Maturity Rates Indebtedness 12/31/25 Business Type Activities - General Obligation Debt General Obligation Refunding Bond 2015 2027 2.00 - 3.50% 8,975,780 $ 1,570,150 $ General Obligation Refunding Bond 2017 2027 2.02% 84,098 13,278 General Obligation Refunding Bond 2021 2041 0.30% - 3.00% 1,855,000 1,385,000 Total Business Type Activities - General Obligation Debt 2,968,428$ Total General Obligation Debt 14,710,000$ 102/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 66 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) E. L ONG-TERM OBLIGATIONS (continued) G ENERAL OBLIGATION DEBT (continued) Annual principal and interest maturities of the outstanding general obligation debt of $14,710,000 on December 31, 2025 are detailed below: Governmental Activities Debt Years Principal Interest Principal Interest Principal Interest 2026 1,460,141$ 380,764 $ 1,214,859$ 63,468$ 2,675,000$ 444,232$ 2027 1,286,430 320,032 623,569 33,246 1,909,999 353,278 2028 1,150,000 262,990 130,000 21,300 1,280,000 284,290 2029 1,130,000 225,756 135,000 18,650 1,265,000 244,406 2030 1,185,001 187,211 135,000 15,950 1,320,001 203,161 2031-2035 4,470,000 430,972 730,000 37,000 5,200,000 467,972 2036-2040 970,000 37,025 - - 970,000 37,025 2041-2045 90,000 900 - - 90,000 900 11,741,572$ 1,845,650$ 2,968,428$ 189,614$ 14,710,000$ 2,035,264$ Business-Type Activities Debt Total 103/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 67 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) E. L ONG-TERM OBLIGATIONS (continued) R EVENUE BONDS Revenue bonds outstanding on December 31, 2025 totaled $13,555,335 and was comprised of the following issues: Date of Final Interest Original Balance Issue Maturity Rates Indebtedness 12/31/25 Governmental Activities - Revenue Bonds Revenue Bond 2017 2037 3.08% 3,165,000 2,125,000$ Bonds 2018 2036 3.5% - 5% 3,515,000 2,660,000 Total Governmental Activities - Revenue Bonds 4,785,000$ Date of Final Interest Original Balance Issue Maturity Rates Indebtedness 12/31/25 Business Type Activities - Revenue Bonds Revenue Bonds 2016 2036 2.00 - 3.00% 2,055,000 1,260,000$ Revenue Bonds 2017 2037 2.00 - 4.00% 1,420,150 775,000 Safe Drinking Water Loan 2021 2050 1.595% 4,456,404 3,403,152 Clean Water Fund Loan 2021 2050 1.595% 5,058,142 3,332,183 Total Business Type Activities - Revenue Bonds 8,770,335$ Total Revenue Bonds 13,555,335$ 104/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 68 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) . E. L ONG TERM OBLIGATIONS (continued) REVENUE BONDS (continued) Annual principal and interest maturities of the outstanding revenue bonds of $13,555,335 on December 31, 2025 are detailed below: Governmental Activities Debt Years Principal Interest Principal Interest Principal Interest 2026 345,000$ 190,041 $ 376,374 $ 166,094 $ 721,374 $ 356,135 $ 2027 375,000 175,891 379,905 157,885 754,905 333,776 2028 405,000 158,666 388,493 149,269 793,493 307,935 2029 415,000 139,766 397,137 140,146 812,137 279,912 2030 420,000 121,791 410,840 131,014 830,840 252,805 2031-2035 2,175,000 348,603 2,181,836 514,593 4,356,836 863,196 2036-2040 650,000 19,268 1,618,673 301,493 2,268,673 320,761 2041-2045 - - 1,448,892 183,568 1,448,892 183,568 2046-2050 - - 1,568,184 63,324 1,568,185 63,324 4,785,000$ 1,154,026$ 8,770,334$ 1,807,386$ 13,555,335$ 2,961,412$ Debt Total Business-Type Activities Governmental activity revenue bonds The Bonds are not general obligations of the Village but are special, limited obligations of the Village payable from revenues that are appropriated by the Village Board of the Village. The Village Board fully expects and anticipates that each year debt service is due on the Bonds, it shall appropriate Available Tax Increment to be derived from property in the TID in an amount sufficient to pay such amount in full. If a shortfall does occur, it will appropriate funds from other available funds of the Village sufficient to fund any such shortfall. Business-type activity revenue bonds The Village has pledged future utility district and water customers revenues, net of specified operating expenses, to repay the utility district and the water revenue bonds. 105/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 69 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) . E. L ONG TERM OBLIGATIONS (continued) Other Debt Information For debt with variable rates, each debt payment has a specified interest rate. Estimated payments of compensated absences are not included in the debt service requirement schedules. The compensated absences liability attributable to governmental activities will be liquidated primarily by the general fund. There are a number of limitations and restrictions contained in the various bond indentures and loan agreements. From 2020 through 2023 a developer financed Village utility system improvements amounting to $14,324,457 within three of the Village's TIF Districts. Based on the Developer Agreement, over the next 40 years, at such time or times when other property owners within the District seek to connect to the Village's utility system, the owners will pay a connection fee to the Village, which will be used to reimburse the developer. To the extent the developer has not been fully reimbursed for the improvements by September 1, 2031, the Village has warranted that it will make a supplemental reimbursement to the developer from Fund Balances, borrowings, or tax appropriations (or a combination thereof) until the developer has received the maximum amounts defined in the Developer Agreement. As of December 31, 2025, the Village has an unpaid obligation of $10,628,071 under this agreement. In 2022, the Village obtained a construction line of credit from Tri-City bank, which bears interest at 3.15% and matures May 1, 2027. No principal payments are due until maturity. Interest is payable annually on the outstanding balance. The balance outstanding at December 31, 2025 was $1,011,617. F. R ESTRICTED ASSETS The Village’s Restricted Assets at December 31, 2025 consisted of cash and investments as follows: General Fund 26,563$ Debt Service Tax Incremental District #1 280,287$ Tax Incremental District #2 412,188 Total Debt Service 692,475$ Special Revenue Funds Drainage 54,332$ Ravine Park 29,369 Park 39,986 Total Special Revenue Funds 123,687$ Sewer Debt Service 118,947$ Utility District #1 Debt Service 32,751$ Somers Water Debt Service 94,378$ Total Restricted Cash and Investments 1,088,801$ 106/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 70 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) . G. LEASE DISCLOSURES The Village leases land for a cell tower to a telecommunications company. The lease is for 25 years and ends on November 6, 2052. Rent is payable in increasing annual installments ranging from $28,444 to $63,183 over the life of the lease. The Village recognized rental income of $15,332 and $21,933 of interest income on this lease for the year ended December 31, 2025. The remaining amount receivable on this lease is $796,904. Deferred inflows on the lease totaled $354,017 for the year ended December 31, 2025. H. G OVERNMENTAL AND BUSINESS -TYPE ACTIVITIES NET POSITION Governmental activities net position reported on the government-wide Statement of Net Position at December 31, 2025 includes the following: G OVERNMENTAL ACTIVITIES Net Investment in Capital Assets Land and construction in progress 1,143,693 $ Other capital assets, net of accumulated depreciation 16,015,424 Business-type capital assets bonded with government- type debt 17,598,101 Less: related long-term debt outstanding (net of unspent proceeds of debt and vacation accrual) (18,264,465) Total Investment in Capital Assets 16,492,753 Restricted 1,597,814 Unrestricted (deficit) (9,450,685) Total Governmental Activities Net Position 8,639,882$ 107/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 71 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) H. GOVERNMENTAL AND BUSINESS -TYPE ACTIVITIES NET POSITION (continued) BUSINESS -TYPE ACTIVITIES KR Utility Utility Somers Storm Water District District #1 Water Utility Total Net Investment in Capital Assets Land -$ -$ 39,000$ -$ 39,000$ Other capital assets, net of accumulated depreciation 5,715,925 31,207,554 28,727,859 583,723 66,235,061 Less: related long-term debt outstanding (net of unspent proceeds of debt and vacation accrual) - (7,095,501) (4,813,019) - (11,908,520) Net book value of fixed assets reported in Proprietary Funds and paid for by Governmental Funds (5,295,930) (2,992,675) (9,309,496) - (17,598,101) Total Investment in Capital Assets 419,995 21,152,110 14,993,134 583,723 37,148,962 Unrestricted 6,166,798 13,077,103 11,795,465 985,819 32,025,185 Total Business-Type Activities Net Position 6,586,793$ 34,229,213$ 26,788,599$ 1,569,542$ 69,174,147$ 108/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 72 NOTE IV – D ETAILED NOTES ON ALL FUNDS (continued) H. G OVERNMENTAL AND BUSINESS -TYPE ACTIVITIES NET POSITION (continued) Governmental fund balances reported on the fund financial statements at December 31, 2025 include the following: Nonspendable Major Funds General Fund - prepaid expenses 33,122 $ Total Nonspendable 33,122 $ Restricted Major Funds Debt Service - debt service purposes only 14,704,273$ Non-Major Funds Tax Incremental Districts - TID purposes only 1,392,676$ Drainage Fund - drainage purposes only 147,291 Park Fund - park purposes only 57,847 Total Restricted 16,302,087 $ Assigned Major Funds General Fund - Fourth of July Parade 7,241 $ General Fund - subsequent year expenditures 1,681,338 Capital Projects 438,076 Non-Major Funds TID - Developer Reimbursements 1,076,258 Total Assigned 3,202,913 $ Una ssigne d Major Funds General Fund 5,689,589 $ Non-Major Funds Tax Incremental Districts - deficit (See Note III C.) (3,779,097)$ Total Unassigned 1,910,492 $ 109/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 73 NOTE V – O THER INFORMATION A. E MPLOYEES ’ RETIREMENT SYSTEM Summary of Significant Accounting Policies Pensions. The fiduciary net position of the Wisconsin Retirement System (WRS) has been determined using the flow of economic resources measurem ent 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, • 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. General Information about the Pension Plan 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 occupations and 62 for elected officials and executive service retirement plan participants, if hired on or before 12/31/2016) are entitled to a retirement benefit 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 periods. 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 110/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 74 NOTE V – O THER INFORMATION (continued) A. EMPLOYEES ’ RETIREMENT SYSTEM (continued) Summary of Significant Accounting Policies (continued) 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 or after 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. Post-Retirement 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 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 Januar y 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 $270,548 in contributions from the employer. 111/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 75 NOTE V – O THER INFORMATION (continued) A. E MPLOYEES ’ RETIREMENT SYSTEM (continued) Contribution rates as of December 31, 2024 are: Employee Category Employee Employer General (including teachers, executives, and elected officials) 6.90% 6.90% Protective with Social Security 6.90% 14.30% Protective without Social Security 6.90% 19.10% Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the Village reported a net pension liability of $287,129 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 (Asset) 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 0.01747421%, which was an increase of 0.00060677% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025 the Village recognized pension expense of $383,954. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience 891,696$ 837,914 $ Net differences between projected and actual earnings on pension plan investments 436,310 - Changes in assumptions 85,196 - Changes in proportion and differences between employer contributions and proportionate share of contributions 795 5,306 Employer contributions subsequent to the measurement date 309,410 - Total 1,723,407 $ 843,220 $ 112/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 76 NOTE V – O THER INFORMATION (continued) A. EMPLOYEES ’ RETIREMENT SYSTEM (continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) $309,410 reported as deferred outflows related to pension resulting from the WRS Employer’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ended December 31, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Actuarial assumptions. The total pension liability in the December 31, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: December 31, 2023 Measurement Date of Net Pension Liability (Asset) December 31, 2024 Experience Study: January 1, 2021 - December 31, 2023 Published November 19, 2024 Actuarial Cost Method: Entry Age Normal Asset Valuation Method: Fair Value Long-Term Expected Rate of Return: 6.8% Discount Rate: 6.8% Salary Increases: Wage Inflation 3.0% Seniority/Merit 0.1% - 5.7% Mortality: 2020 WRS Experience Mortality Table Post-retirement Adjustments* 1.7% * No post-retirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience, and other factors. 1.7% is the assumed annual adjustment based on the investment return assumption and the post-retirement discount rate. Year ended Deferred Outflow Deferred Inflows December 31 of Resources of Resources 2025 1,486,777$ (1,316,927)$ 2026 1,212,618 (618,813) 2027 181,661 (328,836) 2028 66,708 (112,411) 2029 - - Total 2,947,764$ (2,376,987)$ 113/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 77 NOTE V – O THER INFORMATION (continued) A. EMPLOYEES ’ RETIREMENT SYSTEM (continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) 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 Pension Liability for December 31, 2024 is based upon a roll-forward of the liability calc ulated from the December 31, 2023 actuarial valuation. 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 Private Equity/Debt 20 9.5 6.7 Inflation Sensitive 19 4.8 2.1 Real Estate 8 6.5 3.8 Leverage (12) 3.7 1.1 Total Core Fund 100 7.5 4.8 Variable Fund Asset Class U.S. Equities 70 6.5 3.8 International Equities 30 7.4 4.7 Total Variable Fund 100 6.9 4.2 New England Pension Consultants Long Term US CPI (Inflation) Forecast: 2.6% Asset Allocations are managed within established ranges; target percentages may differ from actual monthly allocations. The investment policy used for the Core Fund involves reducing equity exposure by leveraging lower-volatility assets, such as fixed income securities. This results in an asset allocation beyond 100%. Currently, an asset allocation target of 12% policy leverage is used, subject to an allowable range of up to 20%. 114/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 78 NOTE V – O THER INFORMATION (continued) A. E MPLOYEES ’ RETIREMENT SYSTEM (continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued) Single Discount rate. A single discount rate of 6.8% was used to measure the Total Pension Liability for the current and prior year. The 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 c ontribution 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 municipal bond 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 per cent, 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 percent) or 1-percentage-point higher (7.80 percent) than the current rate: 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. 1% Decrease to Current 1% Increase to Discount Rate Discount Rate Discount Rate 5.80% 6.80% 7.80% Entity's proportionate share of the net pension liability (asset) 2,693,656 $ 287,130 $ (1,422,637)$ 115/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 79 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) RETIREE HEALTH INSURANCE Plan Descriptions and Benefit Information The Village of Somers Retiree Health Insurance Plan is a single-employer plan. The plan is administered by the Village and does not issue a standalone financial report. Certain retirees and certain non-represented employees of the Village, identified by name in the employee manual, are eligible for the benefit, along with the Village’s new and existing firefighters. The Village pays a portion of these individuals’ health insurance premiums for continued coverage under the then-existing Village group health insurance plan following retirement and until eligibility for Medicare insurance. Alternatively, retirees who have become eligible for Medicare supplemental insurance, may be entitled to payments of a portion of their Medicare supplemental health insurance premiums based upon a pre-determined and approved schedule available in the employee m anual. The partial premium payments are for the retiree only and do not include family or spousal coverage. As related to OPEB, retirees are retired firefighters or non-represented employees or who were eligible for health insurance coverage from the Village for a period of not less than five (5) years prior to retirement and who have retired from such employment with the Village in good standing. Apart from the firefighters, no benefit is available for any retiree who was not a full-time, non-represented employee of the Village on or before January 1, 2011. Funding Policy The Village contribution is based on actual pay-as-you-go expenditures. Premium payments are made as a reimbursement of eligible costs directly to the retiree according to the details set forth in the employee manual. This manual, and the post-employment benefits offered have been established and can be amended by the Somers Village Board. No assets are accumulated in a trust that meets all of the criteria in GASB Statement No. 75, paragraph 4. The trust does not meet the criterion that the Village’s contributions be irrevocable. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The Village generated an OPEB financial report with a valuation date of December 31, 2024 through the G ASB help website, a service of the actuarial firm, Milliman, Inc. This method is called the Alternative Measurement Method, which is done in place of a full actuarial valuation. 116/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 80 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) RETIREE HEALTH INSURANCE (continued) Assumptions and methods used in this valuation are summarized as follows: The Village adopted the employee manual providing these other post-employment benefits with an effective date of January 1, 2011. The Village has not established a separate, irrevocable trust to fund the annual OPEB cost. The Village used a 20-year tax-exempt municipal bond yield rate since the plan’s net position is not projected to cover benefit pay ments. The Village administers the plan and has not allocated administrative expenses specifically to the plan. Age Adjustment Factor: 2.230 Average Retirement Age: 50 for Fire Dept; 65 for others Employer Future Premium Contribution: Remain a lev el % of the total cost ov er time Actuarial Cost Method: Entry Age Normal Amortization Method: Lev el Percentage of Payroll Assets Backing OPEB Liability: $0 Plan Asset Return: 0.000% Bond Yield: 4.280% Discount Rate: 4.280% Measurement Date: 12/31/2024 Prior Measurement Date: 12/31/2023 Prior Year Discount Rate: 3.620% Projected Salary Increases: 3.000% Amortization Period: 20 Percentage Participation: 100.00% NOL and ADC: Calculated using the Alternative Measurement Method in accordance with GASB methodology. Mortality Table: Pub-2010 Public Retirement Plans Mortality Tables, with mortality Improvement projected for 10 years. Turnov er Assumption: Deriv ed from data maintained by the U.S. Office of Personnel Management regarding the most recent experience of the employee group cov ered by the Federal Employees Retirement System 117/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 81 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) RETIREE HEALTH INSURANCE (continued) The Village reported an OPEB liability of $1,682,299 for the year ended December 31, 2025. Below is a calculation of the liability using a discount rate that is 1% greater and 1% less than the baseline rate shown on the previous table: Changes to the OPEB liability from the prior year to the current year are explained below: The Village recognized an OPEB expense of $27,390 for the year ended December 31, 2025. No payables were outstanding as of the end of the year. Information about the number of active/inactive employees and retirees was as follows: 1% Decreas e to Current 1% Increas e to Discount Rate Discount Rate Discount Rate 3.280% 4.280% 5.280% Net OPEB liability 1,844,590$ 1,682,299$ 1,538,573$ Total OPEB Plan Fiduciar y Net OPEB Liabilit y Net Position Liabilit y (a) (b) (a) - (b) Balance at December 31, 2024 1,664,189$ -$ 1,664,189$ Changes for the year: Service cost 27,390 - 27,390 Interest - - - Contributions and benefit payments (4,145) - (4,145) Economic/demographic gains or losses (5,135) - (5,135) Changes in assumptions or inputs - - - Balance at December 31, 2025 1,682,299$ -$ 1,682,299$ Increas e (Decrease) Village of Somers Retiree Health Insurance Plan Inactive employees or beneficiaries currently receiving benefit payments 6 Active employees 14 20 118/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 82 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) RETIREE HEALTH INSURANCE (continued) The healthcare baseline trend rate used in the calculation is as follows: Below is a calculation of the OPEB liability using a 1% decrease and a 1% increase to the base healthcare trend rates: L OCAL RETIREE LIFE INSURANCE FUND (LRLIF) Other Post-Employment Benefits (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, • Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs, 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. Medical Pharmacy Dental Vision Year 1 5.80% 11.70% 3.50% 3.00% Year 2 5.70% 8.70% 3.50% 3.00% Year 3 5.60% 5.60% 3.00% 3.00% Year 4 5.40% 5.40% 3.00% 3.00% Year 5 5.20% 5.20% 3.00% 3.00% Year 6 5.00% 5.00% 3.00% 3.00% Year 7 4.80% 4.80% 3.00% 3.00% Year 8 4.60% 4.60% 3.00% 3.00% Year 9 4.40% 4.40% 3.00% 3.00% Year 10 4.10% 4.10% 3.00% 3.00% Healthcare Cos t 1% Decreas e Bas eline Trend Rate 1% Increas e Net OPEB liability 1,529,583 $ 1,682,299 $ 1,856,359 $ 119/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 83 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) LOCAL RETIREE LIFE INSURANCE FUND (LRLIF) (continued) General Information about the Other Post-Employment Benefits 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 post-employment 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 also be found using 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 post-retirement benefit. Employers are required to pay the following contributions 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 employee premiums until age 65 in order to be eligible for the benefit after age 65. Contribution rates as of December 31, 2024 are: Coverage Type Employer Contribution 50% Post Retirement Coverage 40% of emplo yee contribution 25% Post Retirement Coverage 20% of emplo yee contribution Employee contributions are based upon nine age bands through age 69 and an additional eight age bands for those age 70 and over. Participating employees must pay monthly contribution rates per $1,000 of coverage until the age of 65 (age 70 if active). The employee contribution rates in effect for the year ended December 31, 2024 are as listed below: 120/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 84 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) LOCAL RETIREE LIFE INSURANCE FUND (LRLIF) (continued) Life Insurance Employee Contribution Rates* For the year ended December 31, 2024 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. OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEBs During the reporting period, the LRLIF recognized $1,299 in contributions from the employer. At December 31, 2025, the Village reported a liability of $241,594 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 (asset) 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 (asset) 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 0.06175300%, which was a decrease of 0.01334700% from its proportion measured as of December 31, 2024. For the year ended December 31, 2025, the Village recognized OPEB revenue of $15,785 for the Fund. No payables were outstanding as of the end of the year. At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEBs from the following sources: 121/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 85 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) LOCAL RETIREE LIFE INSURANCE FUND (LRLIF) (continued) $3,693 reported as deferred outflows related to OPEB resulting from the LRLIF Employer’s contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended December 31, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Actuarial assumptions . The total OPEB liability in the January 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience -$ 25,135$ Net differences between projected and actual earnings on OPEB plan inv estments 3,318 - Changes in assumptions 59,281 135,504 Changes in proportion and differences between employer contributions and proportionate share of contributions 3,507 128,563 Contributions subsequent to the measurement date 3,693 - Total 69,799$ 289,202$ Year ended Deferred Outflow Deferred Inflows December 31 of Resources of Resources 2025 32,138$ 69,313$ 2026 16,873 67,573 2027 6,889 63,259 2028 5,610 50,715 2029 4,595 21,360 2030 - 16,982 Thereafter - - Total 66,105$ 289,202$ 122/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 86 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) LOCAL RETIREE LIFE INSURANCE FUND (LRLIF) (continued) 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 Rated of Return: 4.25% Discount Rate: 4.09% Salary Increases Inflation: Seniority/Merit: 3.00% 0.1% - 5.7% Mortality: 2020 WRS Experience Mortality Table 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. 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. Local 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 US Intermediate Credit Bonds Bloomberg US Interm Credit 40.00% 2.41% US Mortgages Bloomberg US MBS 60.00% 2.71% Inflation 2.30% Long-Term Expected Rate of Return 4.25% 123/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 87 NOTE V – O THER INFORMATION (continued) B. O THER POSTEMPLOYMENT BENEFITS (OPEB) (continued) LOCAL RETIREE LIFE INSURANCE FUND (LRLIF) (continued) 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 change in the discount rate was primarily caused by the increase in the m unicipal 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. 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 calculat ed using a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%) than the current rate: C. RISK MANAGEMENT The Village of Somers is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. It is the policy of the Village of Somers to purchase commerci al insurance for the risks of losses to which it is exposed. 1% Decrease to Current 1% Increase to Discount Rate Discount Rate Discount Rate (3.09%) (4.09%) (5.09%) Entity's proportionate share of the net OPEB liability (asset) 322,924$ 241,594$ 178,921$ 124/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 88 NOTE V – O THER INFORMATION (continued) D. COMMITMENTS AND CONTINGENCIES From time to time, the Village is party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the Village’s Attorney that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the Village’s financial position or results of operations. Funding for the operating budget of the Village comes from many sources, including property taxes, grants and aids from other units of government, user fees, fines and permits, and other miscellaneous revenues. The State of Wisconsin provides a variety of aid and grant programs which benefit the Village. Those aid and grant programs are dependent on continued approval and funding by the Wisconsin governor and legislature, through their budget processes. Any changes made by the State to funding or eligibility of local aid programs could have a significant impact on the future operating results of the Village. E. INTERGOVERNMENTAL AGREEMENT BETWEEN TOWN OF SOMERS AND VILLAGE OF SOMERS On April 24th, 2015, the Secretary of State for the State of Wisconsin issued an incorporation certificate, recognizing the Village of Somers (V illage) as an i ndependent Wisconsin municipality consisting of lands that were formerly located in the Town of Somers (Town). The Town provided municipal services to the property owners and residents of the Town prior to the incorporation of the Village and in order to continue the adequate provision of services on a cost effective basis, the Town and Village entered into an agreement whereby the Village will provide the majority or all municipal services for the benefit of the Town and Village, and the Town and Village will share the costs of these services in accordance with the proportions and other terms listed below. The Town and Village of Somers did annex a portion of the "Remnant Town" into the Village, leaving the remaining “B” area to be annexed by the City of Kenosha as a result of a boundary agreement between the Town of Somers and the City of Kenosha. Wisconsin statute §66.0235 requires the Town and Village to apportion assets and liabilities as a result of the recent incorporation of the Village and further apportionment will be required in accordance with the boundary adjustments detailed in the Agreement. Terms of the Agreement: Term shall be 10 years from the effective date with mutual 10-year renewal until such time that the "B" Area is annexed to the City. The "Effective Date" shall be Midnight of December 31, 2015. 125/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 89 NOTE V – O THER INFORMATION (continued) E. INTERGOVERNMENTAL AGREEMENT BETWEEN TOWN OF SOMERS AND VILLAGE OF SOMERS (continued) Apportionments of Assets and Liabilities: Before apportioning any other asset or liability, all monetary assets and liabilities presently owned or owed by the Town shall be apportioned in accordance with the formula contained at §66.0235(2)(b) based upon the average assessed valuation for the preceding five (5) years of the post-boundary-line change Town and Village areas, res pectively. Because all assets permitted by law will be transferred by the Town to the Village, the goal is to ensure that assets and liabilities that must be divided by law are divided in the appropriate proportion before deciding the apportionment of any other tangible asset. The majority of debt of the Town and Village is General Obligation (GO) Debt issued either through competitive bids, through the State Trust Fund, or by other means and backed by the full faith and credit of the Town prior to incorporation. It is required that this debt be apportioned between the Village and Town regardless of the purpose for which it was issued unless otherwise permitted by law. Following apportionment, and as determined by the apportionment board, the Town may lease any real estate, buildings, road maintenance equipment, park equipment, vehicles, fire and rescue equipment, garbage and recycling equipment, and other similar non-monetary assets that it retains after apportionment, to the Village in exchange for payment of $1.00 in annual consideration (the Village's compliance with the other terms and conditions contained in this Agreement will serve as additional consideration for said lease the receipt of which is acknowledged by Town). Provision of Municipal Services: All public works and related services that were previously provided by the Town for the benefit of the Town shall hereafter be provided by the Village for the benefit of the Town and Village. The Village shall provide fire and rescue services to its own property owners and residents and to the Town's property owners and residents. Parties to this agreement agree to jointly operate the Somers Municipal Court and share in its cost and revenue. The Town is presently a party to a contract with a private contracted service providing refuse and recycling services to property owners and residents. This contract continued in force and effect for the duration of their term. The contract with the private vendor has been transferred to the Village on the effective date of this intergovernmental agreement. The Village shall be responsible for the maintenance of all parks located in the Town and Village. Town and Village shall share all employees and administrative staff. The employees will be employees of the Village and the Town shall contribute to the cost. The record keeping will be performed by the Village staff. All employees of the Town shall be terminated by the Town and rehired by the Village on terms identical to the terms of their current employment with the Town. Any Collective Bargaining Agreement shall be assigned from the Town to the Village as of the Effective Date. 126/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 90 NOTE V – O THER INFORMATION (continued) E. INTERGOVERNMENTAL AGREEMENT BETWEEN TOWN OF SOMERS AND VILLAGE OF SOMERS (continued) The Town and Village shall appoint a common Clerk and Treasurer and share the cost. Payment of Expenses Related to Shared Services: Unless otherwise agreed by the Parties, the Town and Village shall be jointly responsible for the cost of all shared services in the nature of public works, public safety, refuse and recycling, parks, administrative staff, and costs resulting from the provision of similar services, as referenced above. The Town and Village shall each pay the proportion of total expenses equal to their respective share of the total assessed value of all real and personal property located in the Town and Village in the prior year. This value shall be based upon legally taxable value as determined by the Village assessor. Apportionment of Levy: The apportionment of the levy shall be based upon the property originally approved by the State Department of Administration to become a Village, plus any subsequent properties annexed to the Village by ordinance adopted by the Village Board. In this case, to the degree practicable, the mill rate of the Village shall equal the mill rate of the Town. For the 2017 budget and subsequent budgets, the apportionment ratio shall be as determined by the Kenosha County Division of Land Information using the best information available as determined by the Division of Land Information. For 2025, the levy was assessed in compliance with these terms. Assignment of Revenue: The Town does hereby agree to assign revenues to the Village to the degree allowed by State or Federal agencies. Contracts: All contracts held by the Town in 2015 through 2017 were transferred to the Village. Capital Expenditures: The cost of any new capital equipment or other asset necessary or useful for the provision of the municipal services contemplated herein shall be apportioned between the Town and Village in a proportion equal to their respective shares of the total assessed value of all real and personal property located in the Town and Village in the prior year. Capital Financing & Debt: In accordance with 66.0301, all existing debt of the Town that was not already transferred to the Village on May 26, 2015 (the "Existing Debt") was transferred to the Village. It is the intention of the Village and the Town that each municipality share the cost of the Existing Debt in proportion to the assessed value (TID out) of each municipality. In order to evidence the intention to share the cost of the Existing Debt, the Town shall issue a general obligation promissory note (the "Note") to the Village for its proportionate share of the Existing Debt based upon its share of assessed value. 127/289 VILLAGE OF SOMERS NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 91 NOTE V – O THER INFORMATION (continued) E. INTERGOVERNMENTAL AGREEMENT BETWEEN TOWN OF SOMERS AND VILLAGE OF SOMERS (continued) The Village will issue all future debt (the "New Debt") to fund municipal projects pursuant to this IGA, to include GO debt, leases, revenue bonds, conduit debt, or any other debt needed to fund the joint budget, the Utility, or any TIF district in the Village including refunding bonds. Therefore, in order to be able to adjust the principal amount of the Note to reflect either or both (1) any change in the proportionate share of assessed value and/or (2) additional obligations of the Town in connection with additional debt issued by the Village on behalf of the Town, the Note shall be issued for a two-year term. The payments due in the first year of the Note will reflect the Town's share of debt service on the Existing Debt and the New Debt in that same year and the payments due in the second year will be the remaining principal plus interest. GO debt service for general fund debt, or other debt intended to be funded by tax levy through operation of this agreement shall be apportioned between the Town and Village based upon assessed value in accord with apportionment and assessment standards. The Town’s revenues are recorded within the Village’s accounts so therefore this note is considered paid to the Village and not an outstanding receivable. F. I NCORPORATION AND CLASSIFICATION OF TOWN RELATED REVENUE AND EXPENDITURES INTO THIS REPORT According to the IGA, the Village provides all services required by the Town and the Town reimburses these services based on their assessed valuation. The budget and the levy reflect those of both municipalities. Therefore, for accounting and management purposes, the Village records all of the revenues and expenditures of the Town in the Village’s general ledger. For purposes of this audit report, Town revenues from the State or external sources are reported in the same classification in the Village books as the Village revenue. The expenditures of the Town are also reported in this audit report in the same functional categories as the Village expenditures. G. S UBSEQUENT EVENTS Management evaluated subsequent events through August 12, 2026, the date the financial statements were available to be issued. Management is not aware of any events that would require disclosure in the financial statement footnotes. H. UPCOMING ACCOUNTING PRONOUNCEMENTS In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements . The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This statement is ef fective for reporting periods beginning after June 15, 2025. The Village is currently evaluating the impact this standard will have on the financial statements when adopted. 128/289 92 VILLAGE OF SOMERS REQUIRED SUPPLEMENTARY INFORMATION 129/289 93 VILLAGE OF SOMERS KENOSHA COUNTY, WISCONSIN 2018 2019 2020 2021 2022 2023 2024 2025 Total OPEB Liability Balance as of Prior Measurement Date 1,349,694 $ 1,147,677 $ 1,159,112 $ 1,300,638 $ 1,260,448 $ 1,393,450 $ 1,385,832 $ 1,664,189 $ Service Cost 46,073 32,110 29,939 29,939 29,939 29,939 21,745 27,390 Interest on Total OPEB Liability 34,792 50,745 43,567 43,567 44,569 44,569 50,851 - Effect of Plan Changes - - - - - - - - Effect of Economic/Demographic Gains of Losses (63,230) (63,231) 69,592 69,592 87,144 (52,997) 316,366 (5,135) Effect of Assumptions Changes or Inputs (211,463) - 3,820 (178,965) (24,095) (24,095) (104,860) - Benefit Payments - - - - - - - - Employer Contributions (8,189) (8,189) (5,392) (4,323) (4,555) (5,034) (5,745) (4,145) Employee Contributions - - - - - - - - Net Investment Income - - - - - - - - Administrative Expenses - - - - - - - - Balance as of Current Measurement 1,147,677$ 1,159,112 $ 1,300,638 $ 1,260,448 $ 1,393,450 $ 1,385,832 $ 1,664,189 $ 1,682,299 $ Last 10 Fiscal Years Schedule of Changes in Retiree Health Insurance OPEB Liability See Notes to Required Supplementary Information. Plan Year Ending Net OPEB Liability Fiduciary Net Position Covered Employee Payroll Proportionate Share of the Net OPEB Liability (Asset) as a Percentage of Covered Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability (Asset) 12/31/2017 1,349,694$ - $ 796,915$ 169.36% 0.00% 12/31/2018 1,147,677 - 802,342 143.04% 0.00% 12/31/2019 1,159,112 - 1,011,066 114.64% 0.00% 12/31/2020 1,300,638 - 939,915 138.38% 0.00% 12/31/2021 1,260,448 - 910,388 138.45% 0.00% 12/31/2022 1,393,450 - 916,446 152.05% 0.00% 12/31/2023 1,385,832 - 881,569 157.20% 0.00% 12/31/2024 1,664,189 - 896,635 185.60% 0.00% 12/31/2025 1,682,299 - 901,519 186.61% 0.00% See Notes to Required Supplementary Information. Schedule of the Net OPEB Liability (Asset) *This schedule is required to show data for the last ten fiscal years. More years will be added as data becomes available. Retiree Health Insurance Plan - Last 10 Fiscal Years* 130/289 94 VILLAGE OF SOMERS KENOSHA COUNTY, WISCONSIN Plan Year Ending Proportion of the Net OPEB Liability (Asset) Proportionate Share of the Net OPEB Liability (Asset) Covered Employee Payroll Share of the Net OPEB Liability (Asset) as a Percentage of Covered Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability (Asset) 12/31/2017 0.09932600% 298,830$ 4,176,942$ 7.15% 44.81% 12/31/2018 0.10632000% 274,341 1,711,000 16.03% 48.69% 12/31/2019 0.11095200% 472,455 1,810,000 26.10% 37.58% 12/31/2020 0.10464300% 575,612 1,889,000 30.47% 31.36% 12/31/2021 0.08755000% 517,453 1,609,000 32.16% 29.57% 12/31/2022 0.07481800% 285,044 1,887,000 15.11% 0.00% 12/31/2023 0.07510000% 345,509 2,226,000 15.52% 0.00% 12/31/2024 0.06175300% 241,594 2,364,000 10.22% 0.00% See Notes to Required Supplementary Information. *This schedule is required to show data for the last ten fiscal years. More years will be added as data becomes available. Schedule of Proportionate Share of the Net OPEB Liability (Asset) Local Government Life Insurance Fund - Last 10 Fiscal Years* 131/289 95 VILLAGE OF SOMERS KENOSHA COUNTY, WISCONSIN Wisconsin Retirement System - Last 10 Fiscal Years Fiscal Year Ending Proportion of the Net Pension Liability (Asset) Proportionate Share of the Net Pension Liability (Asset) Covered Employee Payroll Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Covered Employee Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (Asset) 12/31/15 0.01304000% 320,298$ 1,376,535$ 23.27% 102.74% 12/31/16 0.01232447% 58,610 1,430,073 4.10% 98.2% 12/31/17 0.01962601% (582,718) 1,709,958 -34.08% 102.93% 12/31/18 0.02081402% 740,497 1,822,913 40.62% 96.45% 12/31/19 0.01491872% (481,047) 1,902,152 -25.29% 102.96% 12/31/20 0.01547884% (966,364) 2,010,496 -48.07% 210.52% 12/31/21 0.01609392% (1,297,198) 2,124,264 -61.07% 212.04% 12/31/22 0.01636443% 866,938 2,037,852 42.54% 191.44% 12/31/23 0.01686744% 250,786 2,309,104 10.86% 197.70% 12/31/24 0.01747421% 287,130 2,489,052 11.54% 197.58% Wisconsin Retirement System - Last 10 Fiscal Years Fiscal Year Ending Contractually Required Contributions Contributions in Relation to the Contractually Required Contributions Contribution Deficiency (Excess) Covered Employee Payroll Contributions as a Percentage of Covered Employee Payroll 12/31/15 115,376$ 115,376 $ - $ 1,376,535$ 8.32% 12/31/16 115,160 115,160 - 1,430,073 8.05% 12/31/17 148,649 148,649 - 1,709,958 8.69% 12/31/18 154,402 154,402 - 1,822,913 8.47% 12/31/19 159,140 159,140 - 1,924,363 8.27% 12/31/20 185,017 185,017 - 1,902,152 9.73% 12/31/21 183,608 183,608 - 2,010,496 9.13% 12/31/22 195,785 195,785 - 2,124,264 9.22% 12/31/23 231,746 231,746 - 2,309,105 10.04% 12/31/24 271,640 271,640 - 2,535,828 10.71% 12/31/25 287,182 287,182 2,501,581 11.48% See Notes to Required Supplementary Information. Schedule of Proportionate Share of the Net Pension Liability (Asset) Schedule of Employer Contributions 132/289 96 VILLAGE OF SOMERS Notes to Required Supplementary Information December 31, 2025 N OTE A – GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 75 The Village implemented GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions , for the fiscal year ended December 31, 2018. Information for prior years is not available. The Village currently has no assets accumulated in a trust for the single employer plan. N OTE B – WISCONSIN RETIREMENT SYSTEM There were no changes of benefit terms for any participating employer in WRS. Changes of 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 ended 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 post-retirement 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 post-retirement adjustments from 2.1% to 1.9% 133/289 97 VILLAGE OF SOMERS Notes to Required Supplementary Information December 31, 2025 N OTE B – WISCONSIN RETIREMENT SYSTEM (CONTINUED) • Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table. The amounts reported for each fiscal year were determined as of the calendar year-end that occurred within the fiscal year. The Village is required to present the last ten fiscal years of data; however accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. N OTE C – LOCAL RETIREE LIFE INSURANCE FUND There were no recent changes in benefit terms. In addition to the rate changes detailed in the notes to the financial statements, 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. The Village is required to present the last ten fiscal years of data; however, accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. 134/289 98 VILLAGE OF SOMERS KENOSHA COUNTY, WISCONSIN SUPPLEMENTARY INFORMATION 135/289 Drainage Fund Park Fund ARPA Fund Total Special Revenue Funds Tax Incremental District #1 Tax Incremental District #2 Tax Incremental District #3 Tax Incremental District #4 Tax Incremental District #5 ASSETS Cash and cash equivalents 92,959$ 13,492$ 13,406$ 119,857$ 692,901$ 554$ 1,076,258$ -$ -$ Investments - - - - 456,659 - - - - Miscellaneous receivable - - - - - - 560 - 32,568 Restricted cash 54,332 69,355 - 123,687 - - - - - Deferred special assessments - - - - 340,879 290,460 - - - TOTAL ASSETS 147,291$ 82,847$ 13,406$ 243,544$ 1,510,281$ 291,014$ 1,076,818$ -$ 32,568$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable -$ -$ -$ -$ 5,792$ 6,606$ 1,259$ 5,336$ 7,210$ Due to other funds - - - - - - 1,497,366 1,257,068 343,280 Developer deposits - 25,000 - 25,000 - 10,000 - - - Unearned revenues - - 13,406 13,406 - - - - - TOTAL LIABILITIES - 25,000 13,406 38,406 5,792 16,606 1,498,625 1,262,404 350,490 DEFERRED INFLOWS OF RESOURCES Deferred tax levy - - - - 19,842 - - - - Deferred special assessments - - - - 341,073 290,460 - - - TOTAL DEFERRED INFLOWS OF RESOURCES - - - - 360,915 290,460 - - - FUND BALANCES Restricted Tax Incremental Districts - - - - 1,143,574 - - - - Drainage fund 147,291 - - 147,291 - - - - - Park fund - 57,847 - 57,847 - - - - - Assigned Developer reimbursement (TIDs) - - - - - - 1,076,258 - - Unassigned - - - - - (16,052) (1,498,065) (1,262,404) (317,922) TOTAL FUND BALANCES (DEFICIT) 147,291 57,847 - 205,138 1,143,574 (16,052) (421,807) (1,262,404) (317,922) TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 147,291$ 82,847$ 13,406$ 243,544$ 1,510,281$ 291,014$ 1,076,818$ -$ 32,568$ Capital Projects FundsSpecial Revenue Funds December 31, 2025 VILLAGE OF SOMERS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS See accompanying notes to the financial statements. 99 136/289 ASSETS Cash and cash equivalents Investments Miscellaneous receivable Restricted cash Deferred special assessments TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Developer deposits Unearned revenues TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Deferred tax levy Deferred special assessments TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES Restricted Tax Incremental Districts Drainage fund Park fund Assigned Developer reimbursement (TIDs) Unassigned TOTAL FUND BALANCES (DEFICIT) TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Tax Incremental District #6 Tax Incremental District #7 Tax Incremental District #8 Tax Incremental District #9 Tax Incremental District #10 Tax Incremental District #11 Total Capital Project Funds Total Nonmajor Governmental Funds 269,888$ - $ - $ - $ -$ -$ 2,039,601$ 2,159,458$ - - - - - - 456,659 456,659 - - 13,043 - - - 46,171 46,171 - - - - - - - 123,687 - - - - - - 631,339 631,339 269,888$ -$ 13,043$ -$ -$ -$ 3,193,612$ 3,437,156$ 20,786$ -$ 5,312$ -$ -$ -$ 52,301$ 52,301$ - 28,799 618,676 20,755 - 24,155 3,790,099 3,790,099 - - -