Village Board Agenda Packet - Updated

May 18, 2026 – Village Board Meeting Page 1 of 2 VILLAGE OF TWIN LAKES 105 East Main Street PO Box 1024 Twin Lakes, Wisconsin 53181 Phone (262) 877-2858 VILLAGE BOARD MEETING Monday, May 18, 2026 – 6:30 p.m. Village Hall, 105 E. Main Street, Twin Lakes, WI AGENDA 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL VILLAGE BOARD: TRUSTEES ANDRES, BAXA, FITZGERALD, KAROW, LIVINGSTON, PERL, PRESIDENT SKINNER 4. APPROVAL OF VOUCHERS FOR PAYMENT: Corporate Checking (including General Fund, Sanitation, Capital Projects-E/M, Sewer Utility, Lake Rehab, Sewer Hook-Up, Sewer Replacement, and Tax Account): 37649-37700, 1018-1039 Expenses – $791,532.80. 5. APPROVAL OF MINUTES: March 16, 2026 Regular Board Meeting Minutes, March 30, 2026 Special Board Meeting Minutes, April 6, 2026 Special Board Meeting Minutes, April 20, 2026 Regular Board Meeting Minutes, May 4 th, 2026 Special Board Meeting Minutes 6. PUBLIC COMMENTS AND QUESTIONS: The Village Board will receive comments on agenda items only. Public Comments are limited to three minutes per person. 7. OMNIBUS AGENDA 1. Motion to approve the Change of Agent application for 2BG Inc., d/b/a Twin Lakes Roadhouse, appointing Andrea Watson as agent. 2. Motion to approve Ordinance 2026-5-2 Amending Section 5.20 of the Twin Lakes Municipal Code Pertaining to Provisional Operator’s Licenses. 3. Motion to approve a Temporary Class “B” Beer license application submitted by the Twin Lakes American Legion Post 544 for the Sons of the American Legion Detachment 544 Cornhole Tournament to be held on June 6, 2026, from 9:00 a.m. to 3:00 p.m. 4. Motion to approve a Change of Agent application for Kane’s Lakeside LLC, d/b/a Buoys, appointing Andrew Kane as agent. 5. Motion to approve Kane’s Lakeside LLC, d/b/a Buoys, request to amend its alcohol beverage licensed premises to include the parking lot on parcel 85-4-119-214-1307 for Baggo League tournaments on May 20; June 3 and 17; July 1, 15, and 29; August 12 and 26; September 9 and 23; and October 7 and 21. 6. Motion to approve Resolution R2026-5-1 Urging the State of Wisconsin to Provide Sustainable and Adequate Transportation Funding. 7. Motion to approve a quote from Century Fence for $7,762.00. 8. Motion to approve a Comprehensive Plan Update Proposal from Community Planning and Consulting LLC for $10,816. 8) PRESIDENT AND TRUSTEE REPORTS May 18, 2026 – Village Board Meeting Page 2 of 2 A. TRUSTEE BARB ANDRES- ADMINISTRATION, FINANCE, JUDICIARY, LICENSING 1. Presentation by CLA (CliftonLarsonAllenLLP) regarding the 2025 audit findings. B. TRUSTEE KEVIN FITZGERALD - STREETS & ROADS, EQUIPMENT, STREET LIGHTS, WEEDS, LAKE PLANNING AND PROTECTION C. TRUSTEE JIM BAXA- CEMETERY, SANITATION, RECYCLING, SENIORS D. TRUSTEE AARON KAROW - BUILDING AND ZONING, PLAN COMMISSION, AND PUBLIC BUILDINGS 1. April 2026 Building Permits: 38; Valuation: $2,733,612.09, Fees Collected: $28,700.78. E. TRUSTEE KEN PERL - POLICE, FIRE, LAKE CONTROL, PARKS AND BEACHES 1. April 2026 Code Enforcement: Active Cases: 16, Closed Cases: 0 2. Discussion and possible action regarding the Fire Department Pay Scale. 3. Discussion and possible action regarding Ordinance 2026-5-1 Creating Chapter 8.90 of the Twin Lakes Code Pertaining to Outdoor Lighting. 4. Discussion and possible action regarding the Interoperable Radio Grant Program and radio upgrades for the Police Department. F. TRUSTEE LIVINGSTON - SEWER, HEALTH AND ENVIRONMENT, YOUTH, LIBRARY G. VILLAGE PRESIDENT HOWARD SKINNER 1. Discussion and possible action regarding appointing Zack Weddig to the Library Board. 9) ADJOURN ***MATTERS MAY BE TAKEN IN ORDER OTHER THAN LISTED*** Requests from persons with disabilities, who need assistance to participate in this meeting or hearing, should be made to the Clerk Treasurer’s office in advance so the appropriate accommodations can be made. VILLAGE OF TWIN LAKES, WISCONSIN FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2025 Tentative Draft - Internal Discussion Purposes Only, 025 25 Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2025 INDEPENDENT AUDITORS’ REPORT 1 BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION 6 STATEMENT OF ACTIVITIES 7 FUND FINANCIAL STATEMENTS BALANCE SHEET – GOVERNMENTAL FUNDS 9 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 11 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND 13 STATEMENT OF NET POSITION – PROPRIETARY FUND 14 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – PROPRIETARY FUND 16 STATEMENT OF CASH FLOWS – PROPRIETARY FUND 17 STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS 19 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUNDS 20 NOTES TO BASIC FINANCIAL STATEMENTS 21 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) – WISCONSIN RETIREMENT SYSTEM 65 SCHEDULE OF CONTRIBUTIONS – WISCONSIN RETIREMENT SYSTEM 65 SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS – DEFINED BENEFIT PLAN 66 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) – LOCAL RETIREE LIFE INSURANCE FUND 67 SCHEDULE OF CONTRIBUTIONS – LOCAL RETIREE LIFE INSURANCE FUND 67 Tentative RED SCHEDUSCHEDU LIABLIAB SS Draft OF O BASICO BASIC SUPSU - CHACH Internal EXPENPEN FUND ND FLOWS –LOWS DUCIARYDUCIAR Discussion ND CHAND CHAN RES, ANDES, AN UAL – GAL – G ROPRIETROPRIE SESE Purposes Only, 11 Subject PROPRIEOPRI NET POSITNET POS ES IN FIDUES IN FID to , ANAN Change CHANGES HANGE NERAL FUNRAL FU ARY FUND ARY FUN D CHADC H VILLAGE OF TWIN LAKES, WISCONSIN TABLE OF CONTENTS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 68 SUPPLEMENTARY INFORMATION DETAILED COMPARISON OF BUDGETED AND ACTUAL REVENUES – GENERAL FUND 71 DETAILED COMPARISON OF BUDGETED AND ACTUAL EXPENDITURES – GENERAL FUND 72 COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 73 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 74 COMBINING STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS 75 COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUNDS 76 ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 78 SCHEDULE OF FINDINGS AND RESPONSES 80 Tentative Draft FINF -DINGDIN Internal R REPORTEPORT AND ONND ON OF FINAF FINA H H GOVERGOVER Discussion ES, RNMENNMEN SITION –ITION – N FIDUCIFIDUCI S’ REPS’ RE Purposes AL FUNDSL FUNDS AND AN A Only, 6868 Subject ON INN I OMPLIANMPLIA CIAL STATCIAL STA NMENT AUNMENT A AND RESPAND RE to TERTER Change FIDUDU RY NET POY NET PO RT FOR BAT FOR (1) INDEPENDENT AUDITORS’ REPORT Village Board Village of Twin Lakes, Wisconsin Twin Lakes, Wisconsin Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Twin Lakes, Wisconsin, (the Village) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Tentative cal resl re ieve that ieve that audit opinudit opi ResponsRespons ManaMana accac Draft dit indit i and thend the d by the by the further further ection oection o popo -accac Internal n of tof maining fning f ncial poscial pos eneral Fueral F n the Unitehe Unite Discussion ental activtal act informatnforma Decembecembe e Village’sVillage’ tatementatemen he ghe g Purposes Only, Subject on, n, d for the or the States of AStates o ance with aance wit ards appards er G to vern d informinform and, wand, w Change ies n of thof t 31, 2025, a2025, basic financic financ referred toreferred mentalment tio Village Board Village of Twin Lakes, Wisconsin (2) In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government 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, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: x Exercise professional judgment and maintain professional skepticism throughout the audit. x 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. x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, no such opinion is expressed. x 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. x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Tentative nci ConcludConclud that that rearea We aWe a thth Draft the approe appr nting estimnting est l statel stat - tivti Internal aterte nd perfod perf , on a teson a tes ding of ing of i approprappropr eneen Discussion ns, o al likelihlikelih reasonareasona Governmovernm ntain profetain profe al misal mi Purposes tatements atements e an auditoan aud t is not abss not a with GAASith GA xists. The rxists. The esulting froesulting f r the or th o Only, itions on ability to ility to luding anyuding any Subject ba ernal contrnal co te in the cirin the c s of the Vis of the Vi to at audit audit sis, evidsis, ev Change nt Auditing SAuditin sional skepsional ske ement of ment proc Village Board Village of Twin Lakes, Wisconsin (3) Required Supplementary Information Accounting principles generally accepted in the United States of America require that the schedules relating to pensions and other postemployment benefits as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The detailed comparisons of General Fund budgeted and actual revenues and expenditures and the combining fund financial statements as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied 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 GAAS. In our opinion, the detailed comparisons of General Fund budgeted and actual revenues and expenditures and the combining fund financial statements is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Tentative in d and aand a , in all ma, in all ma Draft entsents sic financc financ informatiformat l stateml statem accoacco - recre ThT Internal purpose urpose s basic fiasic fi nues andues and are presare pres atemenatemen tlytly Discussion ovide and anaand ana re to be to be h not a panot a p Board, woard, w atements ments financial nancial Purposes enta r placing placin ext. We hat. We h ance with nce wi nformation format inquiries, tquiries asic financiac financ because thbecause any asan Only, chedulesedules e presentede presented managememanage AccouAcc th Subject f f ancialcial s s xpenditurependitur nted for pured for . Such infoSuch in o the undero the under nformationformatio ementme to formingorming at Change resensen t of the baof the b o considersconside an appropn approp atements aatements Village Board Village of Twin Lakes, Wisconsin (4) Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated REPORT DATE, on our consideration of the Village’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Green Bay, Wisconsin REPORT DATE Tentative Draft - Internal Discussion Purposes rnal e an opinian opi nce. That rce. Tha Standardsandard ins Only, REPORT EPORT our tests ofour tests of nts and othts and controcontr Subject to Change (5) BASIC FINANCIAL STATEMENTS Tentative Draft - Internal Discussion Purposes Only, Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF NET POSITION DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (6) Governmental Business-Type Activities Activities Totals ASSETS Cash and Investments 5,800,303 $ 2,372,714 $ 8,173,017 $ Receivables: Taxes and Special Charges 5,303,719 236,763 5,540,482 Accounts 362,802 472,249 835,051 Special Assessments 19,052 40,154 59,206 Due from Other Governments 181,005 - 181,005 Prepaid Items 245,948 37,398 283,346 Leases Receivable 809,307 - 809,307 Restricted Assets: Cash and Investments - 1,883,165 1,883,165 Capital Assets, Nondepreciable 1,960,815 100,000 2,060,815 Capital Assets, Depreciable, Net 9,149,435 21,369,314 30,518,749 Total Assets 23,832,386 26,511,757 50,344,143 DEFERRED OUTFLOWS OF RESOURCES Pension Related Amounts 1,579,695 128,198 1,707,893 Other Postemployment Related Amounts 117,031 8,409 125,440 Total Deferred Outflows of Resources 1,696,726 136,607 1,833,333 LIABILITIES Accounts Payable 140,750 30,388 171,138 Accrued and Other Current Liabilities 237,594 9,707 247,301 Due to Other Governments 5,335 - 5,335 Accrued Interest Payable 31,273 26,876 58,149 Special Deposits 152,320 - 152,320 Long-Term Obligations: Due Within One Year 581,277 678,586 1,259,863 Due in More than One Year 3,786,803 9,682,660 13,469,463 Net Pension Liability 260,550 21,705 282,255 Other Postemployment Benefits 1,575,048 135,671 1,710,719 Total Liabilities 6,770,950 10,585,593 17,356,543 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 6,199,115 - 6,199,115 Leases Related 809,307 - 809,307 Pension Related Amounts 772,297 64,336 836,633 Other Postemployment Related Amounts 113,357 8,145 121,502 Total Deferred Inflows of Resources 7,894,076 72,481 7,966,557 NET POSITION Net Investment in Capital Assets 7,296,413 11,163,545 18,459,958 Restricted: Plant Replacement - 1,883,165 1,883,165 Tax Incremental Districts 505,899 - 505,899 Debt Service (31,273) - (31,273) Waterway Cleanup 17,414 - 17,414 Unrestricted 3,075,633 2,943,580 6,019,213 Total Net Position 10,864,086 $ 15,990,290 $ 26,854,376 $ Tentative elate ostemplotemploy Total DefeTotal Defe ET POSITIPOSIT Net InveNet Inv RestRest Draft WS OF RESOF RE Levied for SLevied for S dd AmoAmo -Internal Discus 1,6961,696 ussion 6 1,579,695579,695 117,03117,0 nn usus Purposes 54 - 37,3987,398 - 1,883,11,883 10 21 Only, alss 8,173,0178,173,0 5,545 lynly Subject to Change 6 140,750140,750 237,594237,5 5,35 ngng VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (7) Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Servi ces Contributions Contributions GOVERNMENTAL ACTIVITIES General Government 946,559 $ 220,627 $ - $ - $ Public Safety 3,906,035 316,688 81,829 9,630 Public Works 1,784,674 627,665 377,550 - Health and Human Services 13,818 - - - Culture and Recreation 568,337 77,007 - - Conservation and Development 150 - - - Interest and Fiscal Charges 91,208 - - - Total Governmental Activities 7,310,781 1,241,987 459,379 9,630 BUSINESS-TYPE ACTIVITIES Sewer Utility 1,723,082 2,117,497 - - Total 9,033,863 $ 3,359,484 $ 459,379 $ 9,630 $ Program Revenues Tentative Draft - Internal Discussion 41,987987 2,1172,117 3 $ $ nn sssscccucu Purposes -- $ $ 81,82981,829 377,550377,55 PP sOnly, Capitalpital Grants andGrants an ontributioontribu nlynlyOO Subject to Change 97 359,4849,484 $ $gggegeanganggg VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF ACTIVITIES (CONTINUED) YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (8) Governmental Business-Type Functions/Programs Activ ities Activities Totals GOVERNMENTAL ACTIVITIES General Government (725,932) $ - $ (725,932)$ Public Safety (3,497,888) - (3,497,888) Public Works (779,459) - (779,459) Health and Human Services (13,818) - (13,818) Culture and Recreation (491,330) - (491,330) Conservation and Development (150) - (150) Interest and Fiscal Charges (91,208) - (91,208) Total Governmental Activities (5,599,785) - (5,599,785) BUSINESS-TYPE ACTIVITIES Sewer Utility - 394,415 394,415 Total Primary Government (5,599,785) 394,415 (5,205,370) GENERAL REVENUES Taxes: Property Taxes 4,615,339 - 4,615,339 Tax Increments 300,368 - 300,368 Federal and State Grants and Other Contributions Not Restricted to Specific Functions 310,797 - 310,797 Interest and Investment Earnings 176,736 157,555 334,291 Miscellaneous 650,560 - 650,560 Total General Revenues 6,053,800 157,555 6,211,355 CHANGE IN NET POSITION 454,015 551,970 1,005,985 Net Position - Beginning of Year 10,410,071 15,438,320 25,848,391 NET POSITION - END OF YEAR 10,864,086$ 15,990,290 $ 26,854,376 $ and Change in Net Position Net (Expense) Revenue Tentative ON Draft IONON nning of Yenning of Ye END OEND - Internal Discuss (5,599,7(5,599, ssion -- n nn ssss PPurposes (725(7 (3,4( -- -- -- PP ota sOnly, nnOO Subject to 4 303 Change ) 393 615,339615,33 0,36 ge 394394 gege VILLAGE OF TWIN LAKES, WISCONSIN BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (9) Other Governmental General Debt Service Funds Totals ASSETS Cash and Investments 3,490,402 $ 683,144 $ 1,626,757 $ 5,800,303 $ Receivables: Taxes and Special Charges 4,059,443 738,424 505,852 5,303,719 Accounts 362,802 - - 362,802 Special Assessments 19,052 - - 19,052 Leases 743,422 - 65,885 809,307 Due from Other Funds 139,222 - - 139,222 Due from Other Governments - - 181,005 181,005 Prepaid Items 245,418 - 530 245,948 Total Assets 9,059,761 $ 1,421,568 $ 2,380,029 $ 12,861,358 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable 139,965 $ - $ 905 $ 140,870$ Accrued and Other Current Liabilities 237,594 - - 237,594 Due to Other Funds - - 139,222 139,222 Due to Other Governments 5,335 - - 5,335 Special Deposits 152,200 - - 152,200 Total Liabilities 535,094 - 140,127 675,221 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year 4,715,507 880,457 603,151 6,199,115 Leases Receivable 743,422 - 65,885 809,307 Special Assessments 750 - - 750 Total Deferred Inflows of Resources 5,459,679 880,457 669,036 7,009,172 FUND BALANCES Nonspendable 245,418 - 530 245,948 Restricted - 541,111 630,097 1,171,208 Assigned 1,748,642 - 940,239 2,688,881 Unassigned 1,070,928 - - 1,070,928 Total Fund Balances 3,064,988 541,111 1,570,866 5,176,965 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 9,059,761$ 1,421,568 $ 2,380,029 $ 12,861,358 $ Tentative gnedd Total Fund Total Fund TotalTota o Draft - Internal 152,2052,2 535,094535,094 alalDiscussion 2,3802,380$ $ -- 3535 onon Purposes 03 ,303,71903,719 362,802362,802 19,05219,0 809,80 1- 1,0051,005 53053 29 PP Only, Subject ,715,507715,507 743,422743,422 75075 5,4 ubub to ooChange $ $ - -- -- - VILLAGE OF TWIN LAKES, WISCONSIN BALANCE SHEET GOVERNMENTAL FUNDS (CONTINUED) DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (10) RECONCILIATION TO THE STATEMENT OF NET POSITION Total Fund Balances as Shown on Previous Page 5,176,965 $ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. 11,110,250 Other long-term assets are not available to pay current period expenditures and, therefore, are deferred in the funds. 750 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 1,579,695 Deferred Inflows Related to Pensions (772,297) Deferred Outflows Related to Other Postemployment Benefits 117,031 Deferred Inflows Related to Other Postemployment Benefits (113,357) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and Notes Payable (4,073,455) Premium on Debt (13,868) Compensated Absences (280,757) Net Pension Liability (260,550) Other Postemployment Benefit (1,575,048) Accrued Interest on Long-Term Obligations (31,273) Net Position of Governmental Activities as Reported on the Statement of Net Position 10,864,086$ Tentative Draft en - AcA Internal t erm Obligerm Oblig Discussion ong-termg-ter enefitsnefits Benefitsnefits he current he current Purposes Only, ,176,965,176,965 Subject onsons s as s as ReportRepo to Change eriod and, theriod and, VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (11) Other Governmental General Debt Service Capital Projects Funds Totals REVENUES Taxes 3,988,116 $ 433,073 $ - $ 489,655$ 4,910,844 $ Intergovernmental 764,280 - - 57,247 821,527 Licenses and Permits 292,612 - - - 292,612 Fines and Forfeits 56,893 - - - 56,893 Public Charges for Services 703,105 - - 76,482 779,587 Intergovernmental Charges for Services 23,992 - - - 23,992 Miscellaneous 862,927 - - 16,414 879,341 Total Revenues 6,691,925 433,073 - 639,798 7,764,796 EXPENDITURES Current: General Government 949,856 - - 153 950,009 Public Safety 3,595,595 - - - 3,595,595 Public Works 2,049,005 - - 33,691 2,082,696 Health and Human Services 13,118 - - - 13,118 Culture and Recreation 430,832 - - 42,159 472,991 Conservation and Development - - - 36,837 36,837 Debt Service: - Principal - 560,300 - - 560,300 Interest and Fiscal Charges - 87,644 - - 87,644 Total Expenditures 7,038,406 647,944 - 112,840 7,799,190 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (346,481) (214,871) - 526,958 (34,394) OTHER FINANCING SOURCES (USES) Long-Term Debt Issued - - - 50,001 50,001 Transfers In - 199,071 - - 199,071 Transfers Out - - - (199,071) (199,071) Total Other Financing Sources (Uses) - 199,071 - (149,070) 50,001 NET CHANGE IN FUND BALANCES (346,481) (15,800) - 377,888 15,607 Fund Balances - Beginning, 3,411,469 556,911 56,233 1,136,745 5,161,358 as Originally Stated Change Within Financial Reporting Entity (Major to Nonmajor) - - (56,233) 56,233 - Fund Balance - Beginning, as Adjusted 3,411,469 556,911 - 1,192,978 5,161,358 FUND BALANCES - END OF YEAR 3,064,988$ 541,111 $ - $ 1,570,866$ 5,176,965 $ Tentative Statedated e Within FinaWithin F ty (Major to (Major to Fund BalaFund Bala as Adjuas Adj F Draft u D BALANCBALANC eginning,eginning - Internal (346,4(346,4 Discussion - -- -- 56565 -- 406406 DDDiDiDDDD Purposes 47 -- - 76,48276,482 16,116,1 6- 6 rprp On 4,910,4, 8Only, TotalsTotals On yOn y Sub ubject -- - ububSS to (21(21 Change -- - 0000 7,6447,644 647,94447,944 ChChhhCC VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (12) RECONCILIATION TO THE STATEMENT OF ACTIVITIES Net Change in Fund Balances as Shown on Previous Page 15,607 $ 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 Assets Reported as Expenditures Within its Respective Function in Governmental Fund Statements 777,092 Depreciation Expense Reported in the Statement of Activities (716,851) 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. Long-Term Debt Issued (50,001) Principal Repaid 560,302 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 the governmental funds: Accrued Interest on Long-Term Debt (6,933) Amortization of Debt Premium 3,367 Compensated Absences 4,637 Net Pension Liability (31,030) Deferred Outflows of Resources Related to Pensions (475,192) Deferred Inflows of Resources Related to Pensions 469,233 Other Postemployment Benefits (116,414) Deferred Outflows of Resources Related to Other Postemployment Benefits 61,542 Deferred Inflows of Resources Related to Other Postemployment Benefits (41,344) Change in Net Position of Governmental Activities as Reported in the Statement of Activities 454,015$ Tentative Net P ment of Acnt of A Draft es ment Beent Be ws of Resoof Reso ows of Resws of Res ositioositio - rcerc ne Internal efore aore bt rces Rrces R Discussion funds, butfunds, bu Net Positiot Positio nmental fuental fu nt of Net of Net ctivities dctivities d enen Purposes Only, 15,60715,607 Subject ated to Pensd to Pen lated to Penlated to P latedlt to repop Change s, butbut sition.on. not require tot requir rted asrted a VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL – GENERAL FUND YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (13) Variance Final Budget - Budget Positive Original Final Actual (Negative) REVENUES Taxes 3,983,989 $ 3,983,989 $ 3,988,116 $ 4,127 $ Intergovernmental 735,481 735,481 764,280 28,799 Licenses and Permits 140,700 140,700 292,612 151,912 Fines and Forfeits 43,000 43,000 56,893 13,893 Public Charges for Services 673,732 673,732 703,105 29,373 Intergovernmental Charges for Services - - 23,992 23,992 Miscellaneous 267,603 267,603 862,927 595,324 Total Revenues 5,844,505 5,844,505 6,691,925 847,420 EXPENDITURES Current: General Government 931,978 931,978 949,856 (17,878) Public Safety 3,289,949 3,289,949 3,595,595 (305,646) Public Works 1,908,888 1,908,888 2,049,005 (140,117) Health and Human Services 6,236 6,236 13,118 (6,882) Culture and Recreation 415,154 415,154 430,832 (15,678) Total Expenditures 6,552,205 6,552,205 7,038,406 (486,201) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (707,700) (707,700) (346,481) 361,219 OTHER FINANCING SOURCES Transfers In 107,703 107,703 - (107,703) NET CHANGE IN FUND BALANCE (599,997) (599,997) (346,481) 253,516 Fund Balance - Beginning of Year 3,411,469 3,411,469 3,411,469 - FUND BALANCE - END OF YEAR 2,811,472$ 2,811,472 $ 3,064,988 $ 253,516 $ Tentative Draft f Y ND OF YEAOF YEA - rr Internal EE Discussion 931931 3,23,2 88 6,236236 415,15415,154 6,552,2056,552,2 scscDisDis Purposes 6 $ $ ,28080 292,6122,612 56,89356,893 703,105703,1 23,92 8686 505505 6 PPPuPu OOnly, ce Budget -udget - Positivesitive (Negative)(Negativ OO Subjec ( ect 107,107 ecec to 07,700)700) Change 78 ,9499 908,888888 6,2366,236 415,154415, 6,552,26,55 hahaChaCha VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUND DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (14) ASSETS Current Assets: Cash and Investments 2,372,714$ Receivables: Taxes and Special Charges 276,917 Customer Accounts 472,249 Prepaid Items 37,398 Total Current Assets 3,159,278 Noncurrent Assets: Restricted Assets: Cash and Investments 1,883,165 Capital Assets: Nondepreciable 100,000 Depreciable, Net 21,369,314 Total Capital Assets 21,469,314 Total Assets 26,511,757 DEFERRED OUTFLOWS OF RESOURCES Pension Related Amounts 128,198 Other Postemployment Related Amounts 8,409 Total Deferred Outflows of Resources 136,607 Sewer Utility Tentative Draft - Internal s ourcesrces Discussion Purposes ss Only, 2,372,7142,372,7 27 ility yy Subject toChange VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF NET POSITION PROPRIETARY FUND (CONTINUED) DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (15) LIABILITIES Current Liabilities: Accounts Payable 30,388$ Accrued and Other Current Liabilities 9,707 Accrued Interest 26,876 Current Portion of Long-Term Debt: Revenue Bonds 678,586 Total Current Liabilities 745,557 Long-Term Obligations, Less Current Portion: Revenue Bonds 9,627,183 Compensated Absences 55,477 Net Pension Liability 21,705 Other Postemployment Benefits 135,671 Total Long-Term Liabilities 9,840,036 Total Liabilities 10,585,593 DEFERRED INFLOWS OF RESOURCES Pension Related Amounts 64,336 Other Postemployment Related Amounts 8,145 Total Deferred Inflows of Resources 72,481 NET POSITION Net Investment in Capital Assets 11,163,545 Restricted: Plant Replacement 1,883,165 Unrestricted 2,943,580 Total Net Position 15,990,290$ Sewer Utility Tentative Draft onon - Internal Discussion Purposes ss Only, 30,38830,3 9, 2 ility yy Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUND YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (16) Sewer Utility OPERATING REVENUES Charges for Services 2,116,889$ OPERATING EXPENSES Operation and Maintenance 1,004,034 Depreciation 553,722 Total Operating Expenses 1,557,756 OPERATING INCOME 559,132 NONOPERATING REVENUES (EXPENSES) Interest Income 157,555 Interest and Fiscal Charges (165,326) Other Nonoperating Revenues (Expenses) 609 Total Nonoperating Revenues (Expenses) (7,162) CHANGE IN NET POSITION 551,970 Net Position - Beginning of Year 15,438,320 NET POSITION - END OF YEAR 15,990,290$ Tentative Draft - Internal Discussion Purposes 1 sesess Only, ility 2,116,8892,116,889 00 yy Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUND YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (17) CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 2,082,281 $ Cash Paid for Employee Wages and Benefits (478,097) Cash Paid to Suppliers (516,282) Net Cash Provided (Used) by Operating Activities 1,087,902 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental Revenues 609 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal Paid on Long-Term Debt (667,293) Interest Paid on Long-Term Debt (166,902) Net Cash Provided (Used) by Capital And Related Financing Activities (834,195) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 157,555 CHANGE IN CASH AND CASH EQUIVALENTS 411,871 Cash and Cash Equivalents - Beginning of Year 3,844,008 CASH AND CASH EQUIVALENTS - END OF YEAR 4,255,879$ Sewer Utility Draft - Internal F YEAYE Discussion ctivitiesvities RR Purposes 1 s ssO 08 Only, 2,082,2812,082,281 (478,097(478,0 (516,2(51 ility yy OO Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF CASH FLOWS PROPRIETARY FUND (CONTINUED) YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (18) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income 559,132$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 553,722 Change in Liability (Asset) and Deferred Outflows and Inflows of Resources: Pension 11,212 Other Postemployment Benefits 16,050 Change in Operating Assets and Liabilities: Accounts Receivable (1,115) Delinquent Accounts Placed on Tax Roll (33,492) Prepaid Items (3,468) Accounts Payable (26,355) Accrued and Current Liabilities 2,080 Compensated Absences 10,136 Net Cash Provided by Operating Activities 1,087,902 $ RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and Cash Equivalents in Current Assets 2,372,714 $ Cash and Cash Equivalents in Restricted Assets 1,883,165 Total Cash and Cash Equivalents 4,255,879 $ Sewer Utility Tentative Draft - Internal etss d Assetsssets ts Discussion ALENTS ALENTS Purposes Only, 559,132559, ility yy Subject toChange O THEO THE VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (19) Custodial Funds ASSETS Cash and Investments 3,005,432$ Receivables: Taxes 14,304,530 Total Assets 17,309,962 LIABILITIES Due to Other Governments 63 DEFERRED INFLOWS Property Taxes Levied for the Subsequent Year 17,286,809 NET POSITION Restricted for Individuals 23,090$ Draft - Internal Discussion Purposes 141 17 eses Only, al dss 3,005,4323,005,4 30 nlynly Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED DECEMBER 31, 2025 See accompanying Notes to Basic Financial Statements. (20) Custodial Funds ADDITIONS Taxes and Special Charges Collected 17,412,049 $ DEDUCTIONS Payments to Individuals 589 Payments to Other Taxing Districts 17,412,049 Total Deductions 17,412,638 CHANGE IN NET POSITION (589) Net Position - Beginning of Year 23,679 NET POSITION - END OF YEAR 23,090$ Tentative Draft - Internal Discussion Purposes ss Only, al dss 17,412,04917,412,0nlynly Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (21) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the Village of Twin Lakes, Wisconsin (the Village), have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the Village are described below: A. Reporting Entity The Village is a municipal corporation governed by an elected seven-member board. In accordance with GAAP, the basic financial statements are required to include the Village and any separate component units that have a significant operational or financial relationship with the Village. The Village has identified the following component unit that is required to be included in the basic financial statements in accordance with standards. Blended Component Unit The following component unit is blended or included in the basic financial statements of the Village. The Twin Lakes Protection and Rehabilitation Lake District (the District) is governed by the Village Board. Although it is legally separate from the Village, the District is reported as if it were part of the primary government because the Village Board is serving as the governing body of the District. The District boundaries are the entire Village limits. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Village. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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. Taxes and other items not properly included among program revenues are reported instead as general revenues. Tentative TT Draft ent oent ge. For te. For t atementsements intergoveintergove rely torely t -f acf Internal anan gh it is h it is primary rimary he DistrictDistric Wide andde and nt-wnt-w Discussion nts a signsign dentified tentified ial statem statem nded or ied or i Reha Reh Purposes enta for esfor e ignificant anificant elected se elected are requare fica Only, age), haveage), have n the Unit the U AccouAcco ta Subject ov The Dise Dis und Financnd Fina e financial financial ities) repoties) rep st part, t pa en to il lly sepy sep ernmenernmen trici Change nts in cluded in thded in th tation Lakation arate VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (22) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the later are excluded from the government-wide financial statements. Governmental funds include general, special revenue, debt service and capital projects funds. Proprietary funds include enterprise funds. The Village has no internal service funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: General Fund This is the Village’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. Debt Service Fund This fund accounts for the resources accumulated and payments made for principal and interest on long-term debt other than enterprise funds. The Village reports the following major enterprise fund: Sewer Utility Fund This fund accounts for the operations of the Village’s sewer utility. Additionally, the Village reports the following fund types: x Special revenue funds for Park Dedication, Lake Rehabilitation, PCB Settlement, and Launch/Marina are used to account for fees specifically set aside for those purposes. x Capital project funds for TID No. 1 and Capital Projects. TID No. 1 is used to account for economic development of the Village and construction and operation of capital expenditures. Capital Projects Fund accounts for the resources accumulated, construction and purchase of capital expenditures. x The Village accounts for assets held by the Village in a trustee capacity or as an agent for individuals, private organizations, and/or other governmental units in custodial funds. C. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Tentative Draft cia aunch/Mnch/M Capital Capital for efor e exe eveev a Internal wingwin for the oor the o he Villagehe Villag Discussion accountsaccount ed for in afor in a es accumaccum than entethan ent majmaj Purposes ropr governmgovern revenue, devenue, d nds. The Vds. The ds and ms and nd financial financ unds: unds: Only, etary fuetary me Subject erations otions o eports the feports the e funds for Pfunds fo are usedare us to en Change other fher ated and paed and rise funds. se funds terprise erpris VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (23) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter 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 generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Revenues susceptible to accrual include intergovernmental grants, intergovernmental charges for services, public charges for services and interest. Other revenues such as licenses and permits, fines and forfeits and miscellaneous revenues are recognized when received in cash or when measurable and available. 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 services. Operating expenses for proprietary funds include the costs of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 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. pp Draft of sof s nues anes an venues annues a When When olicolic -rvicrvi Internal a when men istinguishtinguish revenues venues deliveringelivering he prinche princ omeome Discussion per llected wcted re recordee record ervice expvice exp laims andms an include include arges forarges for nd forfnd fo eaea Purposes e le bility reqity re ing the g the cu asis of accois of ac and availand ava within the within th od. For od. ith Only, vied. Gvied. uir Subject operaer nd expenexpen oods in conoods in c pal operatinal opera s for serviceor service administraadminis enses enses es to urablab ting ng Change nditu udgmentsdgmen tergovernmtergovern ervices andervices a and misand m and an VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (24) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance 1. Cash and Investments Cash and investments are combined in the financial statements. Cash deposits consist of demand and time deposits with financial institutions. Investments are stated at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. For purposes of the statement of cash flows, all cash deposits and highly liquid investments (including restricted assets) with a maturity of three months or less from date of acquisition are considered to be cash equivalents. 2. Property Taxes and Special Charges Receivable Property taxes and special charges consist of taxes on real estate and personal property and user charges assessed against Village properties. They are levied during December of the prior year and become an enforceable lien on property the following January 1. Property taxes are payable in various options depending on the type and amount. Personal property taxes and special charges are payable on or before January 31 in full. Real estate taxes are payable in full by January 31 or in two equal installments on or before January 31 and July 31. Real estate taxes not paid by January 31 are purchased by the County as part of the February tax settlement. Delinquent personal property taxes remain the collection responsibility of the Village. Special charges not paid by January 31 are held in trust by the County and remitted to the Village, including interest, when collected by the County. In addition to its levy, the Village also levies and collects taxes for the School Districts of Randall, Trevor-Wilmot, and Twin Lakes, Wilmot Union High School, Kenosha County, and Gateway Technical College. 3. Accounts Receivable Accounts receivable are recorded at gross amounts with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material to the basic financial statements. 4. Special Assessments Assessments against property owners for public improvements are generally not subject to full settlement in the year levied. Special assessments are placed on tax rolls on an installment basis. Revenue from special assessments recorded in governmental funds is recognized as collections are made or as current installments are placed on tax rolls. (Installments placed on the 2025 tax roll are recognized as revenue in 2026.) Special assessments are subject to collection procedures. Tentative Draft ddidd istricts tricts KenoshaKenosh 3. Acc3. Ac -on on f Internal full. Rell. R nts on ors on or 31 are 31 are linquent pquent Special cpecial ed to theed to the Discussion ma equivaleuival Receivabeceivab es consisconsis essed agsed ag year andyear and ty taxes aty taxes a al propeal prope alal Purposes ements. Caments. C titutions. Inutions. e received received at the mea the me cash depocash de urity of turity nts Only, ition or ition or Subject urchach rsonal pronal pr arges not parges not Village, incluillage, inc its levy, thts levy, ndall, Trndall, and to state ate fore Jafore Ja sed sed Change of taxes ontaxes inst Villagest Village ecome an come a e payable ine payable taxes andtaxes a taxes taxe VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (25) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 5. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as “due from other funds” and “due to other funds” in the fund financial statements. Noncurrent portions of the interfund receivables for the governmental funds are reported as “advances to other funds” and are classified as nonspendable fund balance since they do not constitute expendable available financial resources and therefore are not available for appropriation. The amount reported on the statement of net position for internal balances represents the residual balance outstanding between the governmental and business-type activities. 6. Prepaid Items Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid items and are expensed during the periods benefited. Prepaid items of governmental funds in the fund financial statements are classified as nonspendable fund balance to indicate that they do not represent spendable available financial resources. 7. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of $5,000 or higher and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Tentative Draft itaita Capital aCapital are reare re the the a -AssAs Internal ed asd as of governf gover dable funable fu inancial inancial Discussion nd on. ent of nnt of n outstandinstandi rs that wrs that w prpr Purposes ccur betweeur betw eivables anvables a funds” in unds” in ceivables foivables nd are classnd are cla able avaable Only, ition or ition or Subject mental funtal fun balance tobalance sources. sources. hich to paid aid Change pop betweenbetwee benefit pebenefit tems tem VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (26) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 7. Capital Assets (Continued) Capital assets of the Village are depreciated using the straight-line method over the following estimated useful lives: Governmental Business-Type Assets Activities Activities Land Improvements 5 to 20 Years 5 to 20 Years Buildings and Improvements 15 to 40 Years 15 to 40 Years Machinery and Equipment 3 to 20 Years 3 to 20 Years Infrastructure 10 to 75 Years 10 to 75 Years Sewer Plant - 5 to 75 Years 8. Compensated Absences The liability for compensated absences reported in the government-wide and proprietary fund statements consists of leave that has been used that is attributable to services already rendered, accumulates and is more likely than note to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave. 9. Deferred Outflows/Inflows of Resources Deferred outflows of resources are a consumption of net position by the government that is applicable to a future reporting period. Deferred inflows of resources are an acquisition of net position by the government that is applicable to a future reporting period. The recognition of those outflows and inflows as expenses or expenditures and revenues are deferred until the future periods to which the outflows and inflows are applicable. The Village reports unavailable revenues for property taxes, pension and other postemployment benefits. Governmental funds may report deferred inflows of resources for unavailable revenues. The Village reports unavailable revenues for special assessments and loan receivables. These inflows are recognized as revenues in the government-wide financial statements. Tentative Draft rrer at is apis ap acquisitiocquisit periodperiod andand a -ouo Internal deredered e paid inpaid in ounts for nts for settled thettled th OutflowsOutflows Discussion 1515 ated absated abs s consiss consis acac Purposes ht-line mett-line me vernmentalrnmenta ActivitiesActivitie 5 to 20 5 to to 4tPuPu Only, ition or ition or Subject ave tve ough nonch non nflows of Rnflows o ws of resouws of reso le to a fue to pos to umulamul ash or ssh or hat hat Change 0 to - nces reportnces repo of leave thof leave tes antes t VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (27) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 10. Long-Term Obligations In the government-wide financial statements, and proprietary fund in the fund financial statements, long-term debt and other long-term obligation are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are deferred and amortized using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 11. Leases Lessor The Village is a lessor for noncancellable leases of land, infrastructure, and buildings. The City recognizes a lease receivable and deferred inflows of resources in the applicable governmental activities or business-type activities in the government-wide and in the governmental and proprietary fund financial statements. At the commencement of a lease, the Village initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgment include how the Village determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. x The Village uses its estimated incremental borrowing rate as the discount rate for leases. x The lease term includes the noncancellable period of the lease. x Lease receipts included in the measurement of lease receivable is composed of fixed payments from the lessee. Tentative Draft ernmern At the cAt the c at theat the SuS - pp enten Internal e is a leis a le The CityThe Cit plicaplica Discussion r d mental fuental fu e costs, costs, as other fiother f s other fiother fi ther finanther fina debt procdebt proc Purposes etary fund ary fund obligation abligation business-tyusiness premiums remiums est methoest meth scount. sco Only, ition or ition or Subject sor for noor for n recognizes ecognize le governmgovernm de and in the and in me to Change ds re uring the ng th ancing sourcing so ancing sourcing sour ing uses. Iing uses eds receiveeds rece VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (28) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 11. Leases (Continued) Lessor (Continued) The Village monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 12. Pensions The fiduciary net position of the Wisconsin Retirement System (WRS) has been determined using the flow of economic resources measurement focus and accrual basis of accounting. This includes for purposes of measuring the following: x Net Pension Liability (Asset) x Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions x 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. Tentative Draft - t tt Internal nse (Rese (Re ut the fiduthe fid duciary neuciary n ed by the by the contribcontrib ermerm Discussion onsin Resin Re mic resouresou for purpospurpos Asset) Asset) of Resouof Resou Purposes d require a require ble and dee and ected to sigcted to s Only, ition or ition or Subject iary nery ne position haosition WRS. For thRS. Fo ions) are rens) are . Investmen. Investmen to ue) ue) tp Change emenmen es measus meas s of measurof meas es and Defes and D VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (29) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 13. Other Postemployment Benefits Other Than Pensions (OPEB) Defined Benefit Plan For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense (revenue), the Village’s Other Postemployment Benefit Plan (the Plan) recognizes benefit payments when due and payable in accordance with the benefit terms. Local Retiree Life Insurance Fund 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 the following x Net OPEB Liability (Asset), x Deferred Outflows of Resources and Deferred Inflows of Resources related to Other Postemployment Benefits, and x 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. 14. Fund Equity Governmental Fund Financial Statements Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: x Nonspendable Fund Balance – Amounts that are not in spendable form (such as inventory, prepaid items, or long-term receivables) or are legally or contractually required to remain intact. x Restricted Fund Balance – Amounts that are constrained for specific purposes by external parties (such as grantor or bondholders), through constitutional provisions, or by enabling legislation. Tentative Draft und Eqnd Eq GovernGovern Dra FunFun n - uit Internal e (Re(Re the fiduche fiduc duciary neciary n by LRLIby LRL ontributioontributio ms. Invms. Inv Discussion iree Life ee Life mic resoureso udes for pdes for p et), ), ResourceResourc ment Benment Be venuvenu Purposes d outflows ooutflow OPEB expenEB ex an) recognizan) recogn efit terms. efit terms Only, ition or ition or Subject ry ny n position osition For this p For thi s) are recogs) are rec stments arements a to et poset pos h Change su ces ms m rposes of oses o and Deferrand Defe fits, and ts, and VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (30) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Fund Balance (Continued) 14. Fund Equity (Continued) Governmental Fund Financial Statements (Continued) x Committed Fund Balance – Amounts that are constrained for specific purposes by action of the Village Board. These constraints can only be removed or changed by the Village Board using the same action that was used to create them. x Assigned Fund Balance – Amounts that are constrained for specific purposes by action of Village management. The Village Board has not authorized management to assign fund balance. Residual amounts in any governmental fund, other than the General Fund, are also reported as assigned. x Unassigned Fund Balance – Amounts that are available for any purpose. Positive unassigned amounts are only reported in the General Fund. The Village has not adopted a fund balance spend-down policy regarding the order in which fund balance will be utilized. When a policy does not specify the spend- down policy, GASB Statement No. 54 indicates that restricted funds would be spent first, followed by committed funds, and then assigned funds. Unassigned funds would be spent last. Government-Wide and Proprietary Fund Statements Net position is comprised of three components: x Net Investment in Capital Assets – Amount of capital assets, net of accumulated depreciation, and capital related deferred outflows of resources, less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets and any capital related deferred inflows of resources. x Restricted Net Position – Amount of net position that is subject to restrictions that are imposed by 1) external groups, such as creditors, grantors, contributors or laws or regulations of other governments, or 2) law through constitutional provisions or enabling legislation. x Unrestricted Net Position – Net position that is neither classified as restricted nor as net investment in capital assets. Tentative Draft po x Net InNet In dede - ion ion Internal optepte ce will bwill b B StatemeStateme by commicomm nt last. t last. ent-Wideent-Wid In Discussion are conse cons he Village Villag ce. Resid. Resid d, are alsoare also AmountsAmounts only repoonly repo d a fud a f Purposes ained for spned for ts can onlcan action thataction tha Only, ition or ition or Subject t N ed fundfund and Propried Propr bjomprised ofomprised nt in nt i to d tilized. tilized. No. 54 o. 54 s Change al amam reported asported hat are avaat are ava ed in the Ged in the G balance salanc Wh VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (31) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. NOTE 2 STEWARDSHIP AND COMPLIANCE A. Budgets and Budgetary Accounting The Village follows these procedures in establishing the budgetary data reflected in the basic financial statements: 1. During November, Village management submits to the Village Board a proposed operating budget for the calendar year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. After submission to the governing body, public hearings are held to obtain taxpayer comments. Following the public hearings, the proposed budget, including authorized additions and deletions, is legally enacted by Village Board action. 2. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all funds. Budget is defined as the originally approved budget plus or minus approved amendments. Budget appropriations not expended during the year are closed to fund balance unless authorized by the governing body to be forwarded into the succeeding year’s budget. 3. During the year, formal budgetary integration is employed as a management control device for the Village’s funds. 4. Expenditures may not exceed appropriations provided in detailed budget accounts maintained for each activity or department of the Village. Amendments to the budget during the year require initial approval by management and are subsequently authorized by the Village Board. 5. Encumbrance accounting is not used by the Village to record commitments related to unperformed contracts for goods or services. The Village’s General Fund exceeded budget by $486,201 for the year ended December 31, 2025. Tentative Draft authaut budgebudge 3. Du3. D -orizeoriz t Internal d addadd re adopteadopte d in the Un the U ally apprally appr iationiatio Discussion ishing theshing the agement sement ndar yearar yea proposepropose to the govto the go FollowinFollowin ioio Purposes ncip ake estimke est cial statemal state ates. es. Only, es genees ge ma Subject on a basa bas ited States ted State ved budgeed budg not expendot expen by the govby the g to and and Change bmits to themits to t ommencingmmencing expenditurxpendit erning bodyerning bod the publthe pu deletiodele VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (32) NOTE 2 STEWARDSHIP AND COMPLIANCE (CONTINUED) B. Excess of Expenditures Over Budget Appropriations The following expenditure accounts of the General Fund had actual expenditures in excess of budget appropriations for the year ended December 31, 2025, as follows: Excess Fund Expenditures General Fund: General Government: Village Administrator 6,311 $ Clerk 1,752 General Office 58,132 Accounting and Auditing 6,190 Assessment of Property 6,720 Public Safety: Police Department 259,965 Inspection 17,414 Fire Department 45,681 Public Works: Streets and Roads 106,436 Salt Dome 3,353 Maintenance Building 2,139 Capital Outlay 15,551 Street Lights 18,537 Health and Human Services: Cemetery 6,882 Culture and Recreation Parks - General 15,678 C. Property Tax Levy Limit Wisconsin state statutes provide for a limit on the property tax levies for all Wisconsin cities, villages, towns and counties. For the 2025 and 2026 budget years, Wisconsin Statutes limit the increase in the maximum allowable tax levy to the change in the Village’s January 1 equalized value as a result of net new construction. The actual limit for the Village for the 2025 budget was 0.95%. The actual limit for the Village for the 2026 budget was 1.13%. 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. SS Draft s operty Taerty Ta WisconWiscon itiesities - eneen Internal man Servicn Servic RecreatRecrea Discussion Purposes exp 5, as follas fo turesres 6,36 1 popo Only, enditureendit ow Subject : n imiti toChange 2 VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (33) NOTE 3 DETAILED NOTES ON ALL FUNDS A. Cash and Investments The Village maintains various cash and investment accounts, including pooled funds that are available for use by all funds. Each fund’s portion of these accounts is displayed on the financial statements as “Cash and Investments.” Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the following: Time deposits; repurchase agreements; securities issued by federal, state and local governmental entities; statutorily authorized commercial paper and corporate securities; and the Wisconsin local government investment pool. The carrying amount of the Village’s cash and investments totaled $13,061,614 on December 31, 2025, as summarized below: Petty Cash and Cash on Hand 365 $ Deposits with Financial Institutions 5,333,329 Investments: Wisconsin Investment Series Cooperative (WISC) - Cash Management Series 3,036 Wisconsin Investment Series Cooperative (WISC) - Limited Term Duration Series 1,365,416 Wisconsin Investment Series Cooperative (WISC) - Extended Term Duration Series 2,017,078 Wisconsin Local Government Investment Pool 4,342,390 Total 13,061,614 $ Reconciliation to the Basic Financial Statements: Government-Wide Statement of Net Position: Cash and Investments 8,173,017 $ Restricted Cash and Investments 1,883,165 Fiduciary Fund Statement of Net Position: Custodial Funds 3,005,432 Total 13,061,614 $ Fair Value Measurements The Village categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant observable inputs; Level 3 inputs are significant unobservable inputs. The Village currently has no investments that are subject to fair value measurement. Tentative Draft onciliationciliation Governmeovernm CashCas ReR - Internal C ment Sent Se Series Coories Coo erm Duratim Durati ment Serient Serie nded Termed Ter ocal Goveocal Gove Discussion co nt invesnves h and invand inv w: ooperatoopera eses Purposes oole nts is diss is d e restrictedrestrict issued by issued b mmerciamm me Only, d fundsdf u n pla Subject SerieSer Cooperativoperati Duration SerDuration S ment Investmment Inve Basic Fasic to ativeative s Change stme VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (34) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Deposits and investments of the Village are subject to various risks. Presented below is a discussion of the Village’s deposits and investments and the related risks. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Wisconsin statutes require repurchase agreements to be fully collateralized by bonds or securities issued or guaranteed by the federal government or its instrumentalities. The Village’s investment policy requires the Village to choose bank deposits that have a lower default or credit risk and requires agreements that will fully collateralize the Village’s assets. 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 $1,000,000 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. This coverage has been considered in determining custodial credit risk. As of December 31, 2025, $295,599 of the Village’s deposits with financial institutions were in excess of federal and state depository insurance limits and collateralized with securities held by the pledging financial institution or its trust department or agent but not in the Village’s name. Tentative ww ss Draft ely smly s recoverrecover onsideredsidered As of As of - mo all sal Internal CC me ande and emand dmand d with finanth fina DIC in theIC in th fficial cuscial cus antee Fuantee F untunt Discussion n, a securitieecuritie e repurcrepurc or guarar guara ment policent poli credit risedit ris tions withtions with orporaorpor Purposes esen risks. sks. f the failurehe fail ver its depor its d ession of aession of a in the evein the e governgov t Only, ted beloted b Subject po ial instl inst amount of mount of dian per dean per d d which prowhich p rovided by aovided by a e of the Staof the S nsuredsure in to on vings dgs d sits pesits pe tuttt Change eed bed b requires tequires and requirend requ n n the statethe sta (FDIC) (FDIC epos VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (35) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Wisconsin statutes limit investment in securities to the top two ratings assigned by nationally recognized statistical rating organizations. Presented below is the actual rating as of the year-end for each investment type. Exempt from Not Investment Type Amount Disclosure AAA AA Rated WISC Investments: Cash Management Series 3,036 $ - $ 3,036$ - $ - $ Limited Term Duration Series 1,365,416 - - 1,365,416 - Extended Term Duration Series 2,017,078 - 2,017,078 - - Wisconsin Local Government Investment Pool 4,342,390 - - - 4,342,390 Totals 7,727,920 $ - $ 2,020,114$ 1,365,416 $ 4,342,390 $ Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Village does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Information about the sensitivity of the fair values of the Village’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Village’s investments by maturity: 12 Months 13 to 24 25 to 60 More Than Investment Type Amount or Less Months Months 60 Months WISC Investments: Cash Management Series 3,036 $ 3,036 $ - $ - $ - $ Limited Term Duration Series 1,365,416 1,365,416 - - - Extended Term Duration Series 2,017,078 2,017,078 - - - Wisconsin Local Government Investment Pool 4,342,390 4,342,390 - - - Totals 7,727,920 $ 7,727,920 $ - $ - $ - $ Remaining Maturity Tentative Draft ation aation rest rate st rate he Villagehe Village - bo Internal e risk thatrisk tha vestmentestmen sitivity of ivity of e a formale a forma exposuexposu Discussion ureure -- 42,3902,3902,3902,390 ,,,,7,727,9207,727,920 ioiooo isDisssDiDi Purposes t fulfill its fulfill it ment of a rent of statutes limatutes ecognized cognize s of the yof the Only, Subject hanhan Generallyeneral fair value fair valu nvestment pnvestmen to fair valuo fair va he sensitihe sens ons isons to nges inges in Change ,,3,03,0 2,017,02,017- 2,0172,017 -- -- hahaaa ChCh VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (36) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) A. Cash and Investments (Continued) Investment in Wisconsin’s Investment Series Cooperation The Village has investments in the Wisconsin Investment Series Cooperative (WISC) of $3,385,530 at year-end consisting of $3,036 invested in the Cash Management Services, $1,365,416 invested in Limited Term Duration Series and $2,017,078 invested in Extended Term Duration Series. The Investment Series requires a 14-day minimum investment period and one business day withdrawal notice, and the average dollar weighted maturity is one hundred twenty (120) days or less. The Cash Management Series has no minimum investment period, allows check writing privileges, and the average dollar weighted maturity is ninety (90) days or less. The Cash Management Series and Extended Term Duration Series have received a credit rating of AAA by a nationally recognized statistical rating organization. WISC is organized by and operated exclusively for Wisconsin public schools, technical colleges, and municipal entities. WISC is not registered with the Securities and Exchange Commission, but operates under Wisconsin International Cooperate Statute, Wisconsin Statute, Section 66.031. WISC is governed by the Wisconsin Investment Series Cooperative Commission in accordance with the terms of the Intergovernmental Cooperation Agreement. WISC invests Village funds in accordance with Wisconsin law. WISC investments are valued at amortized cost, which approximates market value. Investment in Wisconsin Local Government Investment Pool The Village has investments in the Wisconsin Local Government Investment Pool (LGIP) of $4,342,390 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. Tentative Draft nsin Csin C ticipants ipants otice. At otice. At was subwas su - nd nd haph Internal ISCS lued at ed at nsin Locain Loc ern nvestmenvestmen at year-eat year-e he Stathe Stat ExEx Discussion ays y ve receivreceiv ation. ion. clusively fsively f ISC is nC is n es under under 031. WIS31. WIS on in accon in acc invesinve Purposes operative erative Cash MaCash and $2,017d $2,0 equires a 1uires a tice, and te, and or less. Theor less. Th check writcheck w or lessor l d Only, W Subject Governve cts in the Wisn the W d. The LGIPThe L of WisconsWiscon hange Comhange Co r 25. The 25. The LGIP GIP to V ortized ized me Change WisconsiWiscon t registeredregiste Wisconsin Inconsin In is governeis gover dance with dance w Village funllage cost VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (37) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) C. Leases Receivable A summary of the Village’s lease terms and interest rates is as follows: x Land Lease – Annual installments ranging from $9,469 to $9,753 including interest at 3.95%, due dates ranging from 2025-2026. x Tower Lease – Annual installments ranging from $16,267 to $46,904, including interest at 5.40%, due dates ranging from 2025-2052. x Tower Lease – Annual installments ranging from $16,267 to $17,595, including interest at 5.40%, due dates ranging from 2025-2027. x DISH Lease – Monthly installments ranging from $600 to $728, including interest at 4.40%, due dates ranging from 2025-2034. x Tower Lease – Annual installments ranging from $16,267 to $18,293, including interest at 5.83%, due dates ranging from 2025-2028. x Tower Lease – Annual installments ranging from $2,212 to $2,544, including interest at 4.40%, due dates ranging from 2025-2034. x Building Lease – Annual installments of $11,000, including interest at 0.07%, due dates ranging from 2025-2031. The leases provide for increases in future minimum annual rental payments. For the year ended December 31, 2025, the Village received $77,299 in lease revenue and $37,169 in interest on the leases receivable. Total principal and interest payments to be received under lease agreements are as follows: Year Ending December 31, Principal Interest Total 2026 70,907 $ 34,349 $ 105,256 $ 2027 65,919 31,615 97,534 2028 51,820 29,627 81,447 2029 35,502 28,583 64,085 2030 41,694 27,346 69,040 2031-2035 163,873 113,824 277,697 2036-2040 41,864 93,775 135,639 2041-2045 89,303 75,722 165,025 2046-2050 158,882 41,895 200,777 2051-2055 89,543 2,460 92,003 Total Minimum Lease Payments 809,307$ 479,196 $ 1,288,503 $ Governmental Activities Draft y 37,1697,16 Total princotal princ follows: follows - ene ini Internal %, du du easese – An – An es rangingranging ovide for iovide for i dede Discussion an rangingnging ents rangts rang nging fromging from installmenstallme 3%, due d%, due d nual instaual inst ed aed a Purposes 9 to $9,753to $9,75 from $16,rom $1 from 2025-om 2025 ging froging fromfr Only, Subject ual al rom 202m 202 creases in fueases i December Decembe rest on therest on t to s ra installmnstall 5 Change g f 2025-2025-2 ts ranging ranging tes ranging rangin ments rangments ran nging frnging VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (38) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) D. Capital Assets Capital asset activity for the year ended December 31, 2025, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Nondepreciable: Land 1,941,733 $ - $ - $ 1,941,733$ Construction in Progress - 19,082 - 19,082 Total Capital Assets, Not Being Depreciated 1,941,733 19,082 - 1,960,815 Capital Assets, Depreciable: Land Improvements 1,927,407 - - 1,927,407 Buildings and Improvements 4,983,248 - - 4,983,248 Machinery and Equipment 4,359,330 47,749 - 4,407,079 Infrastructure 7,598,650 710,261 - 8,308,911 Subtotals 18,868,635 758,010 - 19,626,645 Less Accumulated Depreciation for: Land Improvements 1,557,549 73,677 - 1,631,226 Buildings and Improvements 1,399,387 127,506 - 1,526,893 Machinery and Equipment 2,905,833 180,706 - 3,086,539 Infrastructure 3,897,590 334,962 - 4,232,552 Subtotals 9,760,359 716,851 - 10,477,210 Total Capital Assets, Depreciable, Net 9,108,276 41,159 - 9,149,435 Governmental Activities Capital Assets, Net 11,050,009 $ 60,241 $ - $ 11,110,250 Less: Capital Related Debt 3,799,969 Less: Debt Premium 13,868 Net Investment in Capital Assets 7,296,413 $ Tentative Draft ss: Capital RCapital R Less: Debt Pss: Debt P - N N Internal ssets, Deprets, Depre ental Actental A Discu 18,86818,868 cussion 4077 83,24848 4,359,33059,330 7,598,657,598,65 cucu Purpos - $ $ 9,0829,082 19,08219, oses ows Decreasesreases osos PuPuuu Only, Subject ble, es CapitalCapital btt ctctto 2,92,9 3,83,8 totoChange 47,74947,74 710,26710, 758758 ,557,549557,549 399,387399,38 5,83 ngng VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (39) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) D. Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Capital Assets, Nondepreciable: Land 100,000 $ - $ - $ 100,000$ Capital Assets, Depreciable: Sewer Plant and Equipment 31,229,059 - - 31,229,059 Less Accumulated Depreciation for: Sewer Plant and Equipment 9,306,023 553,722 - 9,859,745 Total Capital Assets, Depreciable, Net 21,923,036 (553,722) - 21,369,314 Business-Type Activities Capital Assets, Net 22,023,036 $ (553,722) $ - $ 21,469,314 Less: Capital Related Debt 10,305,769 Net Investment in Capital Assets 11,163,545 $ Depreciation expense was charged to functions of the Village as follows: Governmental Activities: General Government 86,885 $ Public Safety 163,946 Public Works 360,453 Culture and Recreation 105,567 Total Depreciation Expense - Governmental Activities 716,851 $ Tentative Draft e a Total DTotal D Gov Go - Re R Internal was chargs charg ties:es: nmentment yy Discussion 5 366 22,023,036023,036 nnisiiosiousu Purposes ses $ -- 3,72237 esesosos PurPururur ssOnly, EndiEn Ba Subject ationation ation Expation Acti to to functo func Change (553,722(553,$ ngng VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (40) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) E. Interfund Receivables, Payables, and Transfers Interfund receivables and payables between the individual funds of the Village, as reported in the fund financial statements as of December 31, 2025, are as follows: Interfund Interfund Receivables Payables Temporary Cash Advances to Finance Operating Cash Deficits: Governmental Funds: General 139,222 $ - $ Capital Projects - 139,222 Totals 139,222 $ 139,222 $ Interfund transfers for the year ended December 31, 2025, were as follows: Funds Transfer In Transfer Out Debt Service 199,071 $ - $ Nonmajor Governmental Funds: Launch/Marina Special Revenue - 39,287 TID No. 1 - 159,784 Totals 199,071 $ 199,071 $ Interfund transfers were made for the following purposes: Debt Service Payments 199,071 $ Tentative Draft vi - PayPa Internal enunu rs were ms were m Discussion $ $nonoo cember 3ember 3 scsc Purposes the e as followas foll ableses 139 popo Only, VillageVilla ws Subject de for the fode for the ntsnts to Change 2025, we025, w TrT $ahaanan VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (41) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations The following is a summary of changes in long-term obligations of the Village for the year ended December 31, 2025: Beginning Ending Due Within Balance Issued Retired Balance One Year Governmental Activities: General Obligation Debt: Bonds 2,075,000 $ - $ 240,000$ 1,835,000 $ 245,000 $ Notes 2,210,000 50,001 295,000 1,965,001 295,000 State Trust Fund Loans (Direct Borrowings) 298,756 - 25,302 273,454 41,277 Total General Obligation Debt 4,583,756 50,001 560,302 4,073,455 581,277 Debt Premium 17,235 - 3,367 13,868 - Compensated Absences 285,394 - 4,637 280,757 - Governmental Activities Long-Term Obligations 4,886,385 $ 50,001 $ 568,306 $ 4,368,080 $ 581,277 $ Business-Type Activities: Revenue Bonds (Direct Borrowings) 10,973,062$ - $ 667,293$ 10,305,769 $ 678,586 $ Compensated Absences 45,341 10,136 - 55,477 - Business-Type Activities Long-Term Obligations 11,018,403 $ 10,136 $ 667,293 $ 10,361,246 $ 678,586 $ Total interest paid during the year on long-term debt totaled $238,746. State Trust Fund Loan The Village’s outstanding notes from direct borrowings related to the governmental activities of $273,454 are subject to a statutory provision that in an event of late or nonpayment, a 1% per month penalty will be charged and the payment will be collected through a reduction in payments from the state of Wisconsin. Clean Water Fund Loan Programs The Village’s outstanding notes from direct borrowings related to business type activities of $10,305,769 contain the following provisions in the event of a default: 1) Wisconsin Department of Administration can deduct amounts due from any state payments due to the Village or add the amounts due as a special charge to the property taxes apportioned; 2) may appoint a receiver for the Program’s benefit; 3) may declare the principal amount immediately due and payable; 4) may enforce any right or obligation under the financing agreement including the right to seek specific performance or mandamus; and 5) may increase the interest rate set forth in the financing agreement to the market interest rate. Tentative tht aa Draft n Water Water aft he VillageVillage of $10,30of $10,30 DeparDepa - Internal he yea ye n standing anding 73,454 ar,454 a a 1% pea 1% pe ction ction Disc 11,018,11,01$ $ cussion 50,050,50,050, ,973,062,062 45,34145,3445,34145,341 on 0,001 - -- onionsis cucu DisDisro nro n P56 Purposes e Vi EndinEnding BalanBa 240,000240,000 295,000295,00 25,25, ooosos PP Only, lage foage Subject otes froms from subject to subject t month penamonth pe payments ayments Loan ProLoan Sng to ongg Change -- 10,13610,13610,1360,136 10,13610,$ $ ee anan CCChaChaterm determ VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (42) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations (Continued) General Obligation Debt General obligation debt currently outstanding is detailed as follows: Date of Final Interest Ori ginal Balance Issue Maturit y Rates Indebtedness 12/31/25 2012 State Trust Fund Loan (Direct Borrowing) 11/20/12 03/15/27 4% 300,000 $ 53,454 $ 2012 General Obligation Refunding Bonds 12/04/12 11/01/32 2.55-3.25% 2,240,000 1,075,000 2021 General Obligation Refunding Bonds 01/28/21 09/01/36 1.00-1.50% 1,275,000 760,000 2021 General Obligation Promissory Note 03/18/21 02/01/31 0.35-1.50% 2,875,000 1,915,000 2024 State Trust Fund Loan (Direct Borrowing) 10/08/24 03/15/34 5.50% 220,000 220,000 2025 General Obligation Promissory Note 12/31/25 21/30/30 3.75% 50,001 50,001 Total Outstanding General Obligation Debt 4,073,455$ Annual principal and interest maturities of the outstanding general obligation debt of $4,073,455 on December 31, 2025, are detailed below: Year Ending December 31, Principal Interest Principal Interest Principal Interest 2026 540,000 $ 66,150 $ 41,277 $ 19,344 $ 581,277 $ 85,494 $ 2027 560,000 57,786 48,325 12,295 608,325 70,081 2028 581,667 48,418 22,222 10,141 603,889 58,559 2029 471,667 39,297 23,472 8,891 495,139 48,188 2030 686,667 29,098 24,763 7,600 711,430 36,698 2030-2034 810,000 31,978 113,395 16,027 923,395 48,005 2035-2036 150,000 750 - - 150,000 750 Total 3,800,001 $ 273,477 $ 273,454 $ 74,298 $ 4,073,455 $ 347,775 $ Governmental Activities Bonded Debt Direct Borrowings Totals For governmental activities, the other long-term liabilities are generally funded by the General Fund. Legal Margin for New Debt The Village’s legal margin for creation of additional general obligation debt on December 31, 2025, was $73,224,535 as follows: Equalized Valuation of the Village 1,545,959,800 $ Statutory Limitation Percentage (x) 5% General Obligation Debt Limitation, Per Section 67.03 of the Wisconsin Statutes 77,297,990 Total Outstanding General Obligation Debt Applicable to Debt Limitation 4,073,455 Legal Margin for New Debt 73,224,535 $ Tentative E Draft l MarginMargin afthe VillagVillag DecembDecemb - Internal 4747 68668686686 8888 nn ental actental act Discussion /3 the outshe outs etailed beailed b al Inte Inte 0,0000,000 560,000560,000 1,6671,667 66 GovernmeGovernm ded Debtd Debt scscDisDisisiscucu Purposes OriOrigginal s IndebtedIndeb 4% 3$ $ 55-3.25%-3.25% 1.00-1.50%00-1.50% 0.35-1.50%0.35-1.50 5.50%55 0 3.75 popopopo Only, Subject 00 0,000000,00000 800,001,001 ctctctcttt ties, the oties, the w Debt w DeS m to 33 29229,29 3333 Change ndin w: PrincipalPrinc 41,150,150 41 57,7867, 48,4188,418 297297 8 Activitiestivities Direct BDire hhanhanhhhahaangang VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (43) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) F. Long-Term Obligations (Continued) Revenue Bonds Revenue bonds outstanding on December 31, 2025, totaled $10,305,769 and were comprised of the following issues: Date of Final Interest Ori ginal Balance Issue Maturit y Rates Indebtedness 12/31/25 2006 Revenue Bond (Direct Borrowing) 11/22/06 05/01/26 2.48 % 540,039 $ 32,911 $ 2011 Revenue Bond (Direct Borrowing) 06/22/11 05/01/31 2.45 1,674,333 590,160 2016 Revenue Bond (Direct Borrowing) 04/27/16 05/01/35 2.10 650,322 358,744 2021 Revenue Bond (Direct Borrowing) 11/01/21 05/01/41 1.49 10,342,318 9,323,954 Total Outstanding Revenue Bonds 10,305,769$ Annual principal and interest maturities of the outstanding revenue bonds of $10,305,769 on December 31, 2025, are detailed below: Year Ending December 31, Principal Interest Total 2026 678,586 $ 155,509 $ 834,095 $ 2027 656,355 144,329 800,684 2028 667,220 133,371 800,591 2029 678,272 122,223 800,495 2030 689,516 110,882 800,398 2030-2034 3,179,384 398,681 3,578,065 2035-2039 3,107,067 164,926 3,271,993 2040-2041 649,369 4,822 654,191 Total 10,305,769 $ 1,234,743 $ 11,540,512 $ Business-Type Activities Direct Borrowings Utility Revenues Pledged The Village has pledged future sewer customer revenues, net of specified operating expenses, to repay the sewer system revenue bonds. Proceeds from the bonds provided financing for the construction or acquisition of capital assets used with the system. The bonds are payable solely from sewer customer net revenues and are payable through 2041. The total principal and interest remaining to be paid on the bonds is $11,540,512. Principal and interest paid for the current year and total customer net revenues were $834,197 and $1,227,762 respectively. Tentative 202 PP Draft ReveReve ftVillage Village xpenses, tenses, financingfinancing bondsbond 44 -uesue Internal 9 04141 TotalTotal Disc $ $ scu PrincipaPrincipa scsccussion of the f the etailed beled b BusiBusi cucu Purposes 305,769 05,769 tO r i O gin es Indeb Ind .48 %% $ 2.45.45 2.102.10 1.491 rprppp Only, Subject $eee edged edged Suedged dged s to 686 3 Chang 8,5868,586 $ 656,355656,355 667,220667,22 78,27278 2 ahaanannge ut w: ss-Type ActivType Act ngng VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (44) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan 1. Plan Description The Wisconsin Retirement System (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, which can be found at https://etf.wi.gov/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 December 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 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 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. Tentative Draft Benefits Penefits P afEmployEmplo elecele beb - s ofs o Internal eginning inning yed on or d on o or eligibiliteligibilit after Apafter Ap s who s who crcr Discussion W s a yeaa ye ees) and ees) and re are elie are el Comprehempreh and-studnd-stud cua standala standa found usfound us Purposes ng multiplemultip r plan proplan p enefit termnefit ter ministered inistere ystem provem pro and other and othe WRS empWRS r( 8r Only, Subject artictic fter April r Apri for a retiremfor a reti 24, 1998, 24, 199 nitially becaally bec ditable servditable se d to pationpation 2 Change ble sive Finance Fina s/financial-rnancial- angne Wisconsne Wisco g the link athe lin VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (45) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 1. Plan Description (Continued) 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. 2. Postretirement Adjustments The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system’s consulting actuary. Annuity increases are not based on cost-of-living or other similar factors. For core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the floor) set at retirement. The core and variable annuity adjustments granted during recent years are as follows: Core Fund Variable Fund Year Adjustment Adjustment 2015 2.9 2.0 2016 0.5 (5.0) 2017 2.0 4.0 2018 2.4 17.0 2019 - (10.0) 2020 1.7 21.0 2021 5.1 13.0 2022 7.4 15.0 2023 1.6 (21.0) 2024 3.6 15.0 Tentative Draft - Internal may bay b not be rebe r r) set at set at recent yeecent ye Discussion efi y periodicperiodic al investinves (or decrear decre ether withether wit erves, as erves, as based obased ea pea Purposes ive occupae occup ng covered covere yee-requireee-requi utions on dons on s for emps fo Only, Subject etireire rs are as fare as YearYear ub20152015 2012 2 to lied uced to ced to ment.ment. Change y adjustadjus ent performperfo e) in annuitin annu other actuaer act etermined betermined cost-of-livcost-of- only toonly VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (46) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 3. Contributions Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for general category employees, including teachers, executives and elected officials. Starting on January 1, 2016, the executives and elected officials category was merged into the General Employee Category. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the year ended December 31, 2025, WRS recognized $318,078 in contributions from the Village. Contribution rates for the reporting period are: Employee Category Employee Employer General (Including Teachers, Executives, and Elected Officials) 6.95 % 6.95 % Protective With Social Security 6.95 14.95 Protective Without Social Security 6.95 18.95 4. Pension Assets, Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2025, the Village repor ted a liability of $282,255 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2023, rolled forward to December 31, 2024. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The Village’s proportion of the net pension liability was based on the Village’s share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2024, the Village’s proportion was 0.01682950%, which was an increase of 0.00009141% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the Village recognized pension expense of $374,200. Tentative Draft flowo At DeceAt Dec propopropo meme tt -s ofso Internal eachers, Echers, E Social Seocial Se ithout Socout Soc al e CategCate alal ssetssset Discussion yer bution rtion s provides provid ber 31, r 31, porting peporting pe oryor Purposes ctuarial vaarial v The employe empl ntribution raribution elected ofelected category wcategory ons for proons for p s are res ar ate Only, Subject rity SecuritySecurity Liabilities,abilities sources asources ,2 to utives, autives, aoooChange 025, WRS 5, WR od are: od are: VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (47) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 4. Pension Assets, Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences Between Expected and Actual Experience 876,556 $ 823,687 $ Net Differences Between Projected and Actual Earnings on Pension Plan Investments 428,901 - Changes in Assumptions 83,750 - Changes in Proportion and Difference Between Employer Contributions and Proportionate Share of Contributions 608 12,946 Employer Contributions Subsequent to the Measurement Date 318,078 - Total 1,707,893 $ 836,633 $ $318,078 reported as deferred outflows related to pension resulting from the Village’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: Year Ending December 31, Expense 2026 164,135 $ 2027 580,529 2028 (146,249) 2029 (45,233) Total 553,182 $ Tentative Draft ountsoun esourcessources -rer Internal Subsebse reported ported ontributontribut ft h eft h e Discussion R Actualual ts ence Betwence Betw ProportionProportion ueue non Purposes ferr ated to d to utflows of tflows o e followingfollowin DeferredDeferre OutflowOu eso Only, ed ed Pe Subject s deferred deferre ns subsequs subseq net pensiont pension rted as deted as d to pend to p to to the Change 42 en ee VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (48) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 5. Actuarial Assumptions The total pension liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Valuation Date: Measurement Date of Net Pension Liability: Experience Study: Actuarial Cost Method: Asset Valuation Method: Long-Term Expected Rate of Return: Discount Rate: Salary Increases: Wage Inflation Seniority/Merit Mortality Postretirement Adjustments* December 31, 2023 December 31, 2024 January 1, 2021 - December 31, 2023, Wisconsin 2020 Mortality Table 1.7% Published November 19, 2024 Fair Market Value 6.8% 6.8% 3.0% 0.1% - 5.7% Entry Age Normal * No postretirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience and other factors. 1.7% is the assumed annual adjustment based on the investment return assumption and the postretirement discount rate. Includes the impact of known Market Recognition Account deferred gains/losses on the liability for dividend payments. Actuarial assumptions are based upon an experience study conducted in 2024 that covered a three-year period from January 1, 2021 to December 31, 2023. Based on this experience study, actuarial assumptions used to measure the total pension liability changed from the prior year, including seniority (merit) and separation rates. The total pension liability for December 31, 2024 is based upon a roll-forward of the liability calculated from the December 31, 2023 actuarial valuation. Tentative Draft ariari overed aered a this exphis exp liabilityliabilit TheThe ll asa t Internal adjustmadjustm stment rement re ual adjusal adju ent discont disc deferred deferred Discussion P FaiFai 6 EntrEnt Purposes etermined ermined d in the mein the m ber 31, 2023r 31, 20 ember 31, 20ber 31, 2 anuary 1, 20anuary 1, ublished ublis yA g Only, Subject urn, an, ment basent bas nt rate. Incnt rate. ains/losses ains/losse mptions are ptions a e-year pe-year tudy to is guais gu actuactua Change W % 6.8%% 3.0%3.0% 0.1%0 VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (49) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 5. Actuarial Assumptions (Continued) 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: Long-Term Lon g-Term Expected Ex pected Current Asset Nominal Rate Real Rate Allocation of Return of Return Percentage Percenta ge Percenta ge Core Fund Asset Class: Public Equity 38.0 % 7.0 % 4.3 % Public Fixed Income 27.0 6.1 3.4 Private E quity/Debt 20.0 9.5 6.7 Inflation Sensitive 19.0 4.8 2.1 Real Estate 8.0 6.5 3.8 Leverage (12.0) 3.7 1.1 Total Core Fund 100.0 7.5 4.8 Variable Fund Asset Class: U.S. Equities 70.0 6.5 3.8 International Equities 30.0 7.4 4.7 Total Variable Fund 100.0 6.9 4.2 of 12% policy leverage is used, subject to an allowable range of up to 20%. New England Pension Consultants Long-Term U.S. 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. Currently, an asset allocation target Tentative Draft ableabl U.S. E.S. Eqq InternaIntern NN -FunFu Internal bt ve Core FuCore F Discussion perc ates of ges of g the followhe follow Current Aurrent A AAlloclloc PerPe DisDis Purposes stments waments ges of expes of e an investm inve These ranThese ran weighting tweighting entageenta Only, Subject sset Class:sset Class ties ee to 38 27.027. 2020 Ch0%0%Change LonLo E et N N on ntantaggee ChCh VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (50) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 5. Actuarial Assumptions (Continued) Single Discount Rate A single discount rate of 6.80% 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 6.80% 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 6.80% expected rate of return implies that a dividend of approximately 1.70% will always be paid after reflecting known changes in the Market Recognition Account. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments (including expected dividends) of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Village’s Proportionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the Village’s proportionate share of the net pension liability (asset) calculated using the discount rate of 6.80%, as well as what the Village’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.80%) or 1-percentage-point higher (7.80%) than the current rate: 1% Decrease to Current 1% Increase to Discount Rate Discount Rate Discount Rate (5.80%) (6.80%) (7.80%) Village's Proportionate Share of the Net Pension Liability( Asset) 2,647,918$ 282,255 $ (1,398,481)$ Tentative Draft e follo foll (asset) casset) c proportpropor usingusin hih - -win Internal ed d d to be to be d dividenddividen f return oeturn o efit paymeefit paym of the Vof the Inthethe Discussion hly y r’s CorpCorp rate of reate of r paid afterd after purposes poses always beways be nt rate asate as bution rateution rate nce betwnce betw on theon th Purposes al pension lpensio expected rxpecte nd rate of 4.rate o obligation, obligation, ribing this ribing thi equivaequ Only, Subject ) pensioens ts to deter to dete age’s Propoge’s Pro bjiscount Ratcount Rat Su presents thresents d usindu s to ilable tble of curreof curr onn Change reflecflec of the sinthe s paid. The prd. The umed that pmed that p and that emand that e en actuarialln actuar assumptioassump o ma VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (51) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) G. Pension Plan (Continued) 6. Payables to the Pension Plan The Village reported a payable of $45,882 for the outstanding amount of contributions to the pension plan for the year ended December 31, 2025. H. Other Postemployment Benefits The Village reports OPEB related balances at December 31, 2025, as summarized below: Deferred Deferred OPEB Outflows of Inflows of OPEB Liability Resources Resources Expense Local Retiree Life Insurance Fund (LRLIF) 169,941 $ 125,440 $ 121,502 $ 19,552 $ Single-Employer Defined OPEB Plan 1,540,778 - - 147,568 Total Pension Liability 1,710,719 $ 125,440 $ 121,502 $ 167,120 $ 1. Single-Employer Defined Postemployment Benefit Plan Plan Description The Plan is a single-employer benefit plan that provides postemployment health care benefits to eligible employees and their spouses. Benefits and eligibility for employees are established and amended through collective bargaining with the recognized bargaining agent for each group; and include postemployment health coverage benefits and eligibility for administrators and general support staff are established and amended by the governing body. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Benefits Provided The Village provides medical (including prescription drugs) for retired employees through the Village’s self-insured plans. Certain retired plan members and beneficiaries currently receiving benefits are required to contribute specified amounts monthly towards the cost of insurance premiums based on the employee group and their retirement date. Village paid medical benefits are paid until the retiree or surviving spouse becomes eligible for Medicare. Employees Covered by Benefit Terms At December 31, 2025, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefit Payments 2 Active Employees 30 Total 32 Tentative Draft bli ust that t that BenefBenef Dra TheThe tt -ed ed m Internal gle-employe-emplo igible emible em are estabe estab d bargaind bargai benefibene Discussion DeD EB Liabilitybility ,,169,94169,94 1,5401,5401,5401,5 1$$ 1,71,7 sssscucuscscPostemPostem Purposes standing aanding er 31, 2025.31, 202 ember 31, ember 31 Only, Subject er bebe loyees ayees shed and ashed and ng agent fog agent and eligibnd eligi amended amende s the critethe c to nefit nefit Change 125,440125,4 88 12127199 1212 e lo Resourceource eennngnganananan oyment Beoyment VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (52) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 1. Single-Employer Defined Postemployment Benefit Plan (Continued) Total OPEB Liability The Village’s total OPEB liability was measured as of December 31, 2024, and the total OPEB liability determined by an actuarial valuation using the alternative measurement method as of January 1, 2024. 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, unless otherwise specified: Inflation: Salary Increases: Discount Rate: Healthcare Cost Trend Rates: 3.00% 3.50% 7.90% and Decreasing to 4.5% Thereafter 4.43% Mortality rates were based on the RP-2014 Combined Annuitant Mortality Table for males and females. Discount Rate The discount rate used to measure the total OPEB liability was 4.43%, which was a increase from the prior year rate of 0.43%. The discount rate was based on the 20- year high grade rate index. Tentative Draft hi - h grh g Internal based osed o . e tunt rate uunt rate om thom th dd Discussion 4, acac applied applied Purposes ed) mber 31, 2ber 31 tion using on usi uarialua Only, Subject ed to meased to me prior year ror year rate index. rate inde to he RP-2he RP- Change 3.00%3.00% 3.50%3.50% 7. 4.43%4.43 014 VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (53) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 1. Single-Employer Defined Postemployment Benefit Plan (Continued) Total OPEB Liability (Continued) Changes in the Total OPEB Liability Total OPEB Liability Balance - December 31, 2024 1,447,152 $ Changes for the Year: Service Cost 110,291 Interest 60,784 Difference Between Expected and Actual Experience - Changes of Assumptions and Other Inputs (23,506) Benefit Payments (53,943) Net Changes 93,626 Balance - December 31, 2025 1,540,778 $ Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.43%) or 1-percentage-point higher (5.43%) than the current rate: 1% Increase to Current 1% Decrease to Discount Rate Discount Rate Discount Rate (3.43%) (4.43%) (5.43%) Total OPEB Liability 1,389,256$ 1,540,778 $ 1,711,986 $ Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates Healthcare Cost 1% Increase Trend Rates 1% Decrease (6.90%) (7.90%) (8.90%) Total OPEB Liability 1,774,388$ 1,540,778 $ 1,347,691 $ OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2025, the Village recognized OPEB expense of $147,568. Tentative Draft Total OPotal OP SeSe D - Internal OPEBPE al ents the tts the t PEB liabiliB liabili e-point lopoint lo Discussion Inputsputs LiaLia Purposes ed) OPEBEB iabilitybility 1,447,1521,447,152 11 urpurp Only, Subject woulwou er (3.43%(3.43% y to lity y ol OPEBOPEB d bedb e Change (2 $ngnganana o ChanoC hC VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (54) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund Plan Description The LRLIF is a multiple-employer, defined benefit OPEB plan. LRLIF benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. The Wisconsin Department of Employee Trust Funds (ETF) and the Group Insurance Board have statutory authority for program administration and oversight. The plan provides postemployment life insurance benefits for all eligible employees. OPEB Plan Fiduciary Net Position ETF issues a standalone Annual Comprehensive Financial Report, which can be found at https://etf.wi.gov/about-etf/reports-and-studies/financial-reports-and- statements. Additionally, EFT 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 postretirement benefit. Employers are required to pay the following contributions based on member contributions for active members to provide them with Basic Coverage after age 65. There are no employer contributions required for pre-age 65 annuitant coverage. If a member retires prior to age 65, they must continue paying the member premiums until age 65 in order to be eligible for the benefit after age 65. Contribution rates as of December 31, 2025, are: Coverage Type 50% Postretirement Coverage 40% of Member Contribution 25% Postretirement Coverage 20% of Member Contribution Employer ContributionTentative Draft ual ual enefits efits contributcontribu benefbenef EE -aluaalu Internal vides fulles ful e-65 retir-65 retir up Insurup Insur dationdatio Discussion rehensivehensive t-etf/reporf/repo ss dalone Realone Re ink abovenk above Purposes lan. LRLIF n. LRL e WisconsWisco F) and theand tration andtration and r all eligibler all eligib Only, Subject es ws w nce Board ce Boar from the inom the i n, taking intn, taking he presehe pr de to aid-up laid-up ho paho pa Change -and-snd-s e ree Life Inse Life Ins e VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (55) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) Contributions (Continued) Member contributions are based upon nine age bands through age 69 and an additional eight age bands for those age 70 and over. Participating members must pay monthly contribution rates per $1,000 of coverage until the age of 65 (age 70 if active). The member contribution rates in effect for the year ended December 31, 2025, are listed below: Attained Age Under 30 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 $0 . 0 5 0.06 0.49 0.57 Basic Life Insurance 0.07 0.08 0.12 0.22 0.39 For the Year Ended December 31, 2024 Member Contribution Rates During the year ended December 31, 2025, the LRLIF recognized $656 in contributions from the Village. OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At December 31, 2025, the Village re ported a liability of $169,941 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of December 31, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of January 1, 2024, rolled forward to December 31, 2024. No material changes in assumptions or benefits terms occurred between the actuarial valuation date and the measurement date. The Village’s proportion of the net OPEB liability was based on the Village’s share of contributions to the OPEB plan relative to the contributions of all participating employers. At December 31, 2024, the Village’s proportion was 0.04343800%, which was an increase of 0.01522800% from its proportion measured as of December 31, 2023. For the year ended December 31, 2025, the Village recognized OPEB expense of $19,552. Tentative Draft OPEB LiaEB Lia aft and Defand Def raAt DAt D prp - Internal 9 - 5454 55 - 595 - 59 60 - 6460 - 6 65 -65 - e year e year s fros fro Discussion ncee ed DecembDecemb bution Rabution Ra ssss Purposes hrough ageough articipating ticipat until the agntil the the year ethe year Only, Subject 9 nded Decended De m the Villagehe Village , OPEB, OPESws to Change r 31, 1, eegege VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (56) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) At December 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences Between Expected and Actual Experience - $ 17,681$ Net Differences Between Projected and Actual Earnings on OPEB Plan Investments 2,334 - Changes in Assumptions 41,698 95,316 Changes in Proportion and Difference Between Employer Contributions and Proportionate Share of Contributions 81,408 8,505 Total 125,440 $ 121,502 $ Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending December 31, Expense 2026 4,120 $ 2027 347 2028 (5,219) 2029 (6,134) 2030 6,691 Thereafter 4,133 Total 3,938 $ Tentative Draft - Internal d as deas de ed to OPEd to OP Year EndYear End In Discussion R ctualual nce Betwce Betw Proopportionaortio onon Purposes ows of Resws of Re se ued) d) osoutflows of tflows following solowing DeferredDeferr OutflowOu eso Only, Subject rredred B will be rewill be gg DecemberDecemb bje 20262026 20272027 202820 20 to outfoutf Change n VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (57) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Actuarial Assumptions The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Valuation Date: Measurement Date of Net OPEB Liability (Asset): Experience Study: Actuarial Cost Method: 20-Year Tax-Exempt Municipal Bond Yield:* Long-Term Expected Rate of Return: Discount Rate: Salary Increases: Wage Inflation Seniority/Merit Mortality: *Based on the Bond Buyers GO 20-Bond Municipal Index 2020 WRS Experience Mortality Table January 1, 2024 December 31, 2024 Published November 19, 2024 Entry Age Normal 4.08% January 1, 2021 - December 31, 2023, 4.25% 4.09% 3% 0.1% - 5.7% 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. Tentative Draft PEB liaEB l calculatedalculated LongLon DTT - a tha abilb Internal Bond BuyBond Bu assumpassump rere Discussion ond Yieldond Yield Return:Return: JanJan Purposes ows of Resws of Re se ued) d) os determined termine ed in the ed in the Only, Subject rs GO 20-BoGO 20 ons are bass are b -year period-year peri for Decemor Dece he JaneJ to Change PublishePublise ecemcem Entry Entry 4.04 January 1anuary 4 VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (58) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Long-Term Expected Return on Plan Assets (Continued) Long-Term Expected Geometric Real Target Rate of Return Asset Class Index Allocation Percentage U.S. Intermediate Credit Bonds Bloomberg U.S. Interim Credit 40 % 2.41 % U.S. Mortgages Bloomberg U.S. MBS 60 2.71 Inflation 2.30 Long-Term Expected Rate of Return 4.25 Single Discount Rate A single discount rate of 4.09% was used to measure the total OPEB liability for the current year, as opposed to a discount rate of 3.32% for the prior year. The change in the discount rate was primarily caused by the increase in the municipal bond rate from 3.26% as of December 31, 2023 to 4.08% as of December 31, 2024. The Plan’s fiduciary net position was projected to be insufficient to make all projected future benefit payments of current active and inactive members. Therefore, the discount rate for calculating the total OPEB liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payment to the extent that the plan’s fiduciary net position is projected to be insufficient. The plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through December 31, 2037. Tentative Draft a nefit pefit rate for cte for c resultsresults applapp pp - nene ay Internal ate nnt rate of rate of as opposas oppo ount rate ount rate % as of% as of pp Discussion A g U.S.U.S. m CreditCredit omberg U.berg U. MBSS ooonon Purposes ows of Resws of Re se ued) d) os TargT Only, Subject .09% wa9% wa d to a discoto a di was primarilys prima ecember 3cember sition was sition was nts of currts of cu g thegt to Change 40 %40 VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (59) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) H. Other Postemployment Benefits (Continued) 2. Local Retiree Life Insurance Fund (Continued) OPEB Liabilities, OPEB Expense (Revenue) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Single Discount Rate (Continued) The projection of cash flows used to determine the single discount rate assumed that employer contributions will be made according to the current employer contributions schedule and the contributions are made by plan members retiring prior to age 65. Sensitivity of the Village’s Proportionate Share of Net OPEB Liability to Changes in the Discount Rate The following presents the Village’s proportionate share of the net OPEB liability calculated using the discount rate of 4.09%, as well as what the Village’s proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%) than the current rate: 1% Decrease to Current 1% Increase to Discount Rate Discount Rate Discount Rate (3.09%) (4.09%) (5.09%) Village's Proportionate Share of the Net OPEB Liability 227,149$ 169,941 $ 125,856 $ Payable to the OPEB Plan The Village reported no payable for the outstanding amount of contribution to the Plan required for the year ended December 31, 2025. Tentative Draft b the Villa Villa Plan reqPlan req - to tto -Internal onateate Net OPEBNet OPEB Discussion re of Netof Net onproportionoportion te of 4.0of 4.0 PEB liabiEB liab age-pointge-poin e: e: 11 Purposes ows of Resws of Re se ued) d) os gle discounte discou e current ee current e embers reembers Only, Subject $ ttee OPEB Plan OPEB Pla Su ported noorted he yh to Dec DiscountDiscoun ((3.093.09tt Change te shareshar %, as weas w y would bewould be ower (3.09%er (3.0 rease torease Ra VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (60) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) I. Fund Equity Nonspendable Fund Balance In the fund financial statements, portions of the governmental fund balances are amounts that cannot be spent because they are either 1) not in spendable form, or 2) legally or contractually required to be maintained intact. At December 31, 2025, nonspendable fund balance was as follows: General Fund: Nonspendable: Prepaid Items 245,418 $ Special Revenue Funds: Nonspendable: Prepaid Items: Lake Rehabilitation 265 Launch/Marina 265 Total Special Revenue Funds 530 Total Nonspendable Fund Balance 245,948 $ Restricted Fund Balance In the fund financial statements, portions of governmental fund balances are legally restricted for use for a specific purpose. At December 31, 2025, restricted fund balance was as follows: Debt Service Fund: Restricted for: Debt Service 541,111 $ Special Revenue Fund Restricted for: Waterway Cleanup 17,414 Capital Project Fund: Restricted for: Capital Projects 106,784 Tax Incremental District No. 1 Project Plan 505,899 Total Restricted Fund Balance 1,171,208 $ Tentative Draft S al RevenReve estricted ftricted WaterwWaterw Capital Capital ReRe - vicevic u Internal atementsments a specificspecific und:und: Discussion alancelance Purposes fund baland ba n spendabspend At DecembDece 24 Only, Subject purporp ndnd to portions ortions ose. Aose. A Change $ngngananaa f VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (61) NOTE 3 DETAILED NOTES ON ALL FUNDS (CONTINUED) I. Fund Equity Assigned Fund Balance Portions of governmental fund balances have been assigned to represent tentative management plans that are subject to change. At December 31, 2025, fund balance was assigned as follows: General Fund: Assigned for: Playground Equipment 150,000 $ Road Resurfacing 300,000 Subsequent Year's Expenditures 1,298,642 Total 1,748,642 Special Revenue Funds: Assigned for: Park Dedication 118,629 Lake Rehabilitation 375,121 Boat Launch and Marina Operation 446,489 Total 940,239 Total Assigned Fund Balance 2,688,881 $ NOTE 4 OTHER INFORMATION A. Tax Incremental Financing District The Village has established a separate capital projects fund for a Tax Incremental Financing District (TID) created by the Village in accordance with Section 66.1105 of the Wisconsin Statutes. At the time, the TID was created, the property tax base within the TID was “frozen” and increment taxes resulting from increases to the property tax base are used to finance TID improvements, including principal and interest on long-term debt issued by the Village to finance such improvements. The Statutes allow eligible project costs to be incurred up to five years prior to the maximum termination date. The Village’s TID is still eligible to incur project costs. Since creation of the above TID, the Village has provided various financing sources to the TID and has also recorded eligible TID project costs in other funds of the Village. The foregoing amounts are not recorded as liabilities in the TID capital project funds but can be recovered by the Village from any future excess tax increment revenues. Tentative coc TT Draft ing Dng D consin Stnsin St ID was “fwas “ are usedare use ssuedssue - haha stris Internal alaa N tal Finanal Finan ses Discussion onon ncence onon Purposes representprese 025, fund ba5, fund 150,0150 30 1 Only, t Subject ng Districtg Distr tablished atablished a TID) createTID) cre At theAt t to Change 1 aa VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (62) NOTE 4 OTHER INFORMATION (CONTINUED) A. Tax Incremental Financing District (Continued) The intent of the Village is to recover the above amounts from future TID surplus funds, if any, prior to termination of the respective TID. Unless terminated by the Village prior thereto, the TID has a statutory termination year of 2034. B. Risk Management The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. The Village completes an annual review of its insurance coverage to ensure adequate coverage. Payment of premiums for these policies are recorded as expenses of the Village. Insurance settlements have not exceeded coverage in any of the past three years. C. Contingencies From time to time, the Village is party to other various pending claims and legal proceedings. Although the outcome of such matters cannot be forecast with certainty, it is the opinion of management and legal counsel 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. D. Wisconsin Department of Natural Resources/Lake Elizabeth Public Access In August 2009, the Village entered into a lease with the Wisconsin Department of Natural Resources (DNR) for purposes of providing adequate access at the Lake Elizabeth Public access site. Although half of the land is owned by the DNR, the lease allows the Village to develop, construct, and maintain the entire site with the Village receiving all resultant revenues. In 2009, the Village completed construction of a boat launch and pier at the site at a total cost of $449,587. Financing was provided by DNR grants and long-term borrowings. The assets have been capitalized and are included with the Village’s long-term capital assets. The agreement is effective for a period of 20 years but may be modified or renewed upon written agreement of both parties. The Village may terminate the lease by providing 90 days’ notice. The DNR may terminate the lease in the event that the Village breaches any terms or conditions of the lease, and the breaches are not corrected in a timely manner. Tentative w yey Draft h Ph P s the Vthe V ceiving allving a aunch anaunch an grants grants ithith blicbl l Internal gs will will erations. ations. tment of ment of 09, the V09, the rces rces Discussion ge age. Pae. P Village. InVillage. years. ars. is party is party come of scome of s and leand le havhav Purposes D su by the Vithe V o torts; theftorts; the natural disnatural completcom ym Only, rplus furplus ag Subject atural Reural R llage enterelage ent DNR) for pR) for ccess site. Acess site to develto de rev to a ma m Change o other varother v ch matters cch matters counsel counse t aterial ateria VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 (63) E. Accounting Changes The Capital Projects fund previously met the criteria to be reported as a major fund. However, effective January 1, 2025 the fund now meets the criteria to be reported as a nonmajor fund and is reported as such for the fiscal year ended December 31, 2025. The effect of that changes to or within the financial grouping entity is shown in column C of the table below: Change to or Within the December 31, 2024 Financial as Previously Reporting Entity December 31, 2024 Reported (C) as Adjusted Governmental Funds: Major Funds: General Fund 3,411,469 $ - $ 3,411,469$ Debt Service 556,911 - 556,911 Capital Projects 56,233 (56,233) - Nonmajor Funds: Park Dedication 111,129 - 111,129 Lake Rehabilitation 293,725 - 293,725 PCB Settlement 17,414 - 17,414 Launch/Marina 391,080 - 391,080 TIF District No. 1 323,397 - 323,397 Capital Projects - 56,233 56,233 Total Governmental Funds 5,161,358$ - $ 5,161,358$ Tentative Draft - Internal undsds aa Discussion 99 $$ ,9111191111 56,2336,233 111,1111,1111,111, 292922 Purposes own or the e ancialcial orting ting EntityEntity (C)(C) PP Only, jor fund. r fund ported as aported as a ber 31, 202er 31, 2 n colunc o Subject ctto5,15to 333 totoChange 725725 7,4147,4147,4147,414 391,08091,080391,08091,08 3,39733 93,397 (64) REQUIRED SUPPLEMENTARY INFORMATION Tentative Draft - Internal Discussion Purposes N Only, Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) WISCONSIN RETIREMENT SYSTEM LAST TEN MEASUREMENT PERIODS* See accompanying Notes to Required Supplementary Information. (65) Proportionate Share of the Net Plan Fiduciary Proportionate Pension Liability Net Position as a Proportion of Share of the Covered (Asset) as a Percentage of the Measurement the Net Pension Net Pension Payroll Percentage of Total Pension Period Ended Liability (Asset) Liability (Asset) (Plan Year) Covered Payroll Liability (Asset) 12/31/15 0.01568557 254,888 $ 1,878,780 $ 13.57% 98.20% 12/31/16 0.01548298 127,617 1,881,566 6.78% 99.12% 12/31/17 0.01563440 (464,215) 1,895,772 24.49% 102.93% 12/31/18 0.01567832 (557,785) 1,813,393 30.76% 100.00% 12/31/19 0.01541659 497,101 1,853,920 -26.81% 102.96% 12/31/20 0.01527384 953,567 1,921,272 -49.63% 105.26% 12/31/21 0.01569327 1,264,906 2,049,819 -61.71% 106.02% 12/31/22 0.01651050 874,677 2,179,957 -40.12% 95.72% 12/31/23 0.01673809 250,586 2,213,520 -11.32% 98.85% 12/31/24 0.01682950 282,255 2,549,616 -11.07% 98.79% SCHEDULE OF CONTRIBUTIONS WISCONSIN RETIREMENT SYSTEM LAST TEN FISCAL YEARS* Contributions in Relation to the Contributions as Contractually Contractually Contributi on Covered a Percentage of Fiscal Required Required Deficiency Payroll Covered Year Ended Contributions Contributions (Excess) (Fiscal Year) Payroll 12/31/16 121,440$ 121,440 $ - 1,881,566$ 6.45% 12/31/17 164,936 164,936 - 1,895,772 8.70% 12/31/18 158,055 158,055 - 1,813,393 8.72% 12/31/19 164,202 164,202 - 1,853,920 8.86% 12/31/20 175,413 175,413 - 1,921,272 9.13% 12/31/21 189,762 189,762 - 2,049,819 9.26% 12/31/22 202,618 202,618 - 2,179,957 9.29% 12/31/23 220,863 220,863 - 2,213,520 9.98% 12/31/24 248,749 248,749 - 2,549,616 9.76% 12/31/25 318,078 318,078 - 2,643,970 12.03% * These schedules are intended to present information for the last 10 fiscal years. Information for additional years will be included when available. Tentative /18 /31/19/31/19 12/31/202/31/20 12/31/12/31/ 12/12/ Draf $ $ aft RequirRequ ContributContribut afaf - allal ed Internal SININ AST TENT TEN CoCo Discussion 8199 79,95779,957 2,213,520213,520 2,549,62,549,6 E OF COE OF CO RETIRET Purposes TotTo LiabilityLiabi % .78%8% 24.49%4.49% 30.76%30.76% -26.81-26. -49 eses Only, duciaryciary osition as aosition as a centage of thentage of l PensilP e n Subject ibutions inutions in elation to theation to th ContractuaContract RequReq ContCo to EM SCAL YSCAL Change -1- TRIBUTIONTRIBUTIO ENT SYENT S EA VILLAGE OF TWIN LAKES, WISCONSIN SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS DEFINED BENEFIT PLAN LAST TEN MEASUREMENT YEARS* See accompanying Notes to Required Supplementary Information. (66) 2024 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability: Service Cost 110,291 $ 109,602 $ 66,082 $ 95,349 $ 90,834 $ 69,569 $ 64,802 $ 58,372 $ Interest 60,784 45,053 44,406 28,267 23,709 37,261 38,008 49,553 Difference Between Expected and Actual Experience - 6,057 - (178,149) (36,976) (198,631) - (215,348) Changes of Assumptions and Other Inputs (23,506) 184,797 31,463 (130,430) - 235,153 42,579 (225,208) Benefit Payments (53,943) (49,370) (42,494) (39,566) (59,890) (55,831) (36,706) (34,273) Other Changes - - - - - - (324) (66,908) Net Changes in Total OPEB Liability 93,626 296,139 99,457 (224,529) 17,677 87,521 108,359 (433,812) Total OPEB Liability - Beginning 1,447,152 1,151,013 1,051,556 1,276,085 1,258,408 1,170,887 1,062,528 1,496,340 Total OPEB Liability - Ending 1,540,778 $ 1,447,152 $ 1,151,013 $ 1,051,556 $ 1,276,085 $ 1,258,408 $ 1,170,887 $ 1,062,528 $ Covered-Employee Payroll 2,643,970 $ 2,938,780 $ 2,718,839 $ 2,718,839 $ 1,666,663 $ 1,666,663 $ 1,668,492 $ 1,668,492 $ Village's Total OPEB Liability as a Percentage of Covered-Employee Payroll 58.28% 49.24% 42.33% 38.68% 76.57% 75.50% 70.18% 63.68% * This schedule is intended to present information for the last 10 measurement years. Information for additional years will be included when available. Tentative Draft - Internal Discussion 8.68%8% e last 10 last 10 Purposes ,1533 4 (55,831),831) -- 87,52187,521 1,170,8871,170, 085 1,258,1,$ $ 1,666,6631,666,66 $ osospoporrrprp Only, 2017 4,80202 58$ $ 38,00838,008 - y,y, Subject to Change measuresure VILLAGE OF TWIN LAKES, WISCONSIN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) LOCAL RETIREE LIFE INSURANCE FUND LAST 10 MEASUREMENT PERIODS See accompanying Notes to Required Supplementary Information. (67) Proportionate Share of the Net OPEB Liability Plan Fiduciary Proportionate (Asset) as a Net Position as a Proportion of Share of the Covered- Percentage Percentage of the Measurement the Net OPEB Net OPEB Employee of Covered- Total OPEB Period Ended Liability (Asset) Liability (Asset) Payroll Employee Payroll Liability (Asset) 12/31/17 0.03368500 % 101,342 $ 1,416,551 $ 7.15% 44.81% 12/31/18 0.03494200 90,162 1,946,000 4.63% 48.69% 12/31/19 0.02365800 100,740 1,812,000 5.56% 37.58% 12/31/20 0.02326300 127,963 1,696,000 7.54% 31.36% 12/31/21 0.02642100 156,158 1,971,000 7.92% 29.57% 12/31/22 0.02905500 110,695 2,050,000 5.40% 38.81% 12/31/23 0.02821000 129,784 1,932,000 6.72% 33.90% 12/31/24 0.04343800 169,941 2,716,000 6.26% 37.20% SCHEDULE OF CONTRIBUTIONS LOCAL RETIREE LIFE INSURANCE FUND LAST TEN FISCAL YEARS* Contributions in Relation to the Contributions as Contractually Contractually Cont ribution a Percentage Fiscal Required Required Deficiency Covered- of Covered- Year Ended Contributions Contributions (Excess) Employee Payroll Employee Payroll 12/31/18 675 $ 675 $ - $ 1,946,000$ 0.03% 12/31/19 466 466 - 1,812,000 0.03% 12/31/20 525 525 - 1,696,000 0.03% 12/31/21 536 536 - 1,971,000 0.03% 12/31/22 593 593 - 2,100,000 0.03% 12/31/23 645 645 - 2,150,000 0.03% 12/31/24 630 630 - 2,938,780 0.02% 12/31/25 656 656 - 2,643,970 0.02% * These schedules are intended to present information for the last 10 fiscal years. Information for additional years will be included when available. Tentative /24 31/2531/25 * These sThese s additioadditio Draft - 6 4 Internal ontributionsribution Relation telation ContrContr R onsons 5InInnn Discussion 0 0000 16,0006,000 ONTRIBUTRIBU FE INSURINSUR FISCAL FISCAL Purposes Perc TotaTot oll LiabilityLiab 5%% 4.63%63% 5.56%5.56% 7.54%7.54% 7.927 5 sssese Only, FiduciaryFiduciary Position as aPosition a ntage ofntage OP Subj bject he uallyy quireduired ntributionsntributions bjbj to Change ONS NS NCE FUNDCE FUND EARS* EARS* VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 (68) NOTE 1 WISCONSIN RETIREMENT SYSTEM The Village is required to present the last 10 fiscal years of data; however, accounting standards allow the presentation of as many years as are available until 10 fiscal years are presented. Changes of Benefit Terms 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 2024 covering January 1, 2021, through December 31, 2024, the ETF Board adopted assumption changes that were used to measure the total pension liability beginning with the year ended December 31, 2024, including the following: x Raising the seniority/merit inflation rate from 0.1%-5.6% to 0.1%-5.7% 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: x Lowering the long-term expected rate of return from 7.0% to 6.8% x Lowering the discount rate from 7.0% to 6.8% x Lowering the inflation rate from 2.5% to 2.4% x Lowering the postretirement adjustments from 1.9% to 1.7% x 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: x Lowering the long-term expected rate of return from 7.2% to 7.0% x Lowering the discount rate from 7.2% to 7.0% x Lowering the wage inflation rate from 3.2% to 3.0% x Lowering the price inflation rate from 2.7% to 2.5% x Lowering the postretirement adjustments from 2.1% to 1.9% x Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table. Tentative xx Draft n a threa thre h DecembDecem asure theasure the uding thuding th - Internal rm expecexpe ount rate unt rate flation ratation ra e postretirpostret assumptioassumpti sin 20sin 2 Discussion he yee y from 0.1%rom 0.1 dy conducondu Board adooard ad beginninbeginn Purposes yer in WRS.r in WR 2024 cover2024 cover mption chmption ar ear Only, accountingaccounting cal years aal year Subject om 7m from 2.5%om 2.5 ment adjustment adju s were chas were c 8 Mortality Mortality ar experir exp 17, to d rate ofrate o 7.0% t7.0% t Change -5.6% to6% t ed in 2021in 202 ted assumpd assum with the ywith the ret VILLAGE OF TWIN LAKES, WISCONSIN NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 (69) NOTE 2 OTHER POSTEMPLOYMENT BENEFIT PLANS The Village is required to present the last 10 fiscal years of data; however, accounting standards allow the presentation of as many years as are available until 10 fiscal years are presented. Single-Employer Defined Postemployment Benefit Plan Changes of Benefit Terms There were no changes of benefit terms for the Plan. Changes of Assumptions The discount rate was changed from 4.43% used in the fiscal year 2024 valuation to 4.28%, which is the S&P Municipal Bond 20 Year High-Grade Rate Index as of December 31, 2025. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Local Retiree Life Insurance Fund (LRLIF) Changes of Benefit Terms There were no recent changes in benefit terms. Changes of Assumptions The State of Wisconsin 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: x Lowering the price inflation rate from 2.5% to 2.4% x 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: x Lowering the long-term expected rate of return from 5.00% to 4.25% x Lowering the wage inflation rate from 3.2% to 3.0% x Lowering the price inflation rate from 2.7% to 2.5% x Mortality assumptions were changed to reflect updated trends by transitioning from the Wisconsin 2012 Mortality Table to the Wisconsin 2018 Mortality Table. Tentative TheThe li Draft liabilitiabil LoweriLoweri xx Mor Mo thth - tiotio es Internal in TrustTrus based obased ent Systet Syste es (assetss (assets cc Discussion in Year Year ated in a ated in a F) u benefit tebenefit te Purposes the fiscathe HighHi Only, accountingaccounting cal years aal year Subject aa . These These for the retirr the r anges that anges tha cluding theluding t to und Bound B threethree Change ms. ms. ard (70) SUPPLEMENTARY INFORMATION Tentative Draft - Internal Discussion Purposes Only, Subject to Change VILLAGE OF TWIN LAKES, WISCONSIN DETAILED COMPARISON OF BUDGETED AND ACTUAL REVENUES GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (71) Variance Final Budget - Budget Positive Original Final Actual (Negative) Taxes: General Property 3,983,989 $ 3,983,989 $ 3,988,116 $ 4,127 $ Intergovernmental: State: State Shared Taxes 254,823 254,823 254,989 166 Fire Insurance Dues 44,000 44,000 48,864 4,864 Tax-Exempt Computer Aid 437 437 438 1 Law Enforcement 59,000 59,000 32,465 (26,535) Transportation 352,072 352,072 351,765 (307) Payment in Lieu of Taxes 3,000 3,000 12,958 9,958 Recycling 17,000 17,000 18,939 1,939 Video Service Provider Aid - - 22,237 22,237 Personal Property Aid 5,149 5,149 5,149 - Other Public Safety - - 16,476 16,476 Total Intergovernmental 735,481 735,481 764,280 28,799 Licenses and Permits: Licenses: Liquor and Malt Beverage 11,500 11,500 12,498 998 Operators, Cigarette, and Other Licenses 6,900 6,900 10,974 4,074 Cable Television Fees 38,000 38,000 61,113 23,113 Dog 500 500 606 106 Permits: Building 80,000 80,000 193,496 113,496 Culvert and Other Permits 3,800 3,800 13,925 10,125 Total Licenses and Permits 140,700 140,700 292,612 151,912 Fines and Forfeits: Court Fines and Penalties 43,000 43,000 56,893 13,893 Public Charges for Services: Clerk's Fees 3,500 3,500 5,250 1,750 Police Charges 850 850 1,683 833 Other Fees 1,900 1,900 17,740 15,840 Public Works 667,482 667,482 678,432 10,950 Total Public Charges for Services 673,732 673,732 703,105 29,373 Intergovernmental Charges for Services: Law Enforcement - - 23,992 23,992 Miscellaneous: Interest on Investments 150,503 150,503 181,599 31,096 Insurance Recoveries and Dividends - - 10,557 10,557 Donations - - 2,035 2,035 Other 117,100 117,100 668,736 551,636 Total Miscellaneous 267,603 267,603 862,927 595,324 Total Revenues 5,844,505 $ 5,844,505 $ 6,691,925 $ 847,420 $ Tentative ks Total Public l Public rgovernmenovernme Law EnforLaw Enfo MisceMisce I Draft ces:: - Internal Discussion 11 ,14949 ---- ,,735,481735,481 ssss Purposes 1166 254,95254,9825 480 48 4377 59,00059,000 352,072352,0 3,0003,0 0 Only, nce l Budget -udget - Positiveositive (Negative)(Negat OO Subject cc to Change 5,1 - 735,481735,48 ,,11,50011,500 6,9006,9006,9006,900 38 00038 0038,00038 00 50 gege VILLAGE OF TWIN LAKES, WISCONSIN DETAILED COMPARISON OF BUDGETED AND ACTUAL EXPENDITURES GENERAL FUND YEAR ENDED DECEMBER 31, 2025 (72) Variance Final Budget - Budget Positive Original Final Actual (Negative) General Government: Legislative 36,739 $ 36,739 $ 36,739 $ - $ Judicial 11,393 11,393 10,874 519 Elections 10,710 10,710 9,844 866 Legal 15,000 15,000 14,445 555 Village Administrator 124,085 124,085 130,396 (6,311) Clerk 39,113 39,113 40,865 (1,752) General Office 386,855 386,855 444,987 (58,132) Accounting and Auditing 29,000 29,000 35,190 (6,190) Assessment of Property 96,028 96,028 102,748 (6,720) Insurance and Bonds 22,000 22,000 21,129 871 Miscellaneous - - (830) 830 Contingency 75,000 75,000 - 75,000 Total General Government 845,923 845,923 846,387 (464) Public Safety: Police Department 2,685,499 2,685,499 2,945,464 (259,965) Fire Department 604,450 604,450 650,131 (45,681) Inspection 86,055 86,055 103,469 (17,414) Total Public Safety 3,376,004 3,376,004 3,699,064 (323,060) Public Works: Streets and Roads 1,086,306 1,086,306 1,192,742 (106,436) Salt Dome 105,500 105,500 108,853 (3,353) Capital Outlay - - 15,551 (15,551) Maintenance Building 13,200 13,200 15,339 (2,139) Street Lights 52,000 52,000 70,537 (18,537) Weeds 700 700 627 73 Sanitation 651,182 651,182 645,356 5,826 Total Public Works 1,908,888 1,908,888 2,049,005 (140,117) Health and Human Services: Cemetery 6,236 6,236 13,118 (6,882) Culture and Recreation: Parks - General 91,991 91,991 107,669 (15,678) Library 323,163 323,163 323,163 - Total Culture and Recreation 415,154 415,154 430,832 (15,678) Total Expenditures 6,552,205 $ 6,552,205 $ 7,038,406 $ (486,201) $ Tentative re neralral Total CulTotal C ToTo Draft ces:: ion:ion - Internal Discussion 00 ,92323 2,685,492,685,4 604604 iiioio DisDis Purposes 7399 10,874874 9,8449,844 14,44514,4 130,3913 3 40 8555 29,00029,000 96,02896,0 2,0002,0 Only, nce l Budget -udget - Positiveositive (Negative)(Negat OO Subject to 1,08,0 Change 45,9 2,685,492,685,4 0 6046 ,055055 376,004376,004 3 haChahaha VILLAGE OF TWIN LAKES, WISCONSIN COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 (73) Park Lake PCB Launch/ Ca pital Dedication Rehabilitation Settlemen t Marina Pro jects TID No. 1 Totals ASSETS Cash and Investments 118,629 $ 400,224 $ 17,414 $ 446,489 $ 65,001 $ 579,000 $ 1,626,757 $ Receivables: Taxes and Special Charges - 125,802 - - - 380,050 505,852 Leases - - 65,885 - - 65,885 Due from Other Governments - - - - 181,005 - 181,005 Prepaid Items - 265 - 265 - - 530 Total Assets 118,629 $ 526,291 $ 17,414 $ 512,639 $ 246,006 $ 959,050 $ 2,380,029 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable - $ 905$ - $ - $ - $ - $ 905$ Due to Other Funds - - - - 139,222 - 139,222 Total Liabilities - 905 - - 139,222 - 140,127 DEFERRED INFLOWS OF RESOURCES Property Taxes Levied for Subsequent Year - 150,000 - - - 453,151 603,151 Leases Receivable - - 65,885 - - 65,885 Total Deferred Inflows of Resources - 150,000 - 65,885 - 453,151 669,036 FUND BALANCES Nonspendable - 265 - 265 - - 530 Restricted - - 17,414 - 106,784 505,899 630,097 Assigned 118,629 375,121 - 446,489 - 940,239 Total Fund Balances 118,629 375,386 17,414 446,754 106,784 505,899 1,570,866 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 118,629 $ 526,291 $ 17,414 $ 512,639 $ 246,006 $ 959,050 $ 2,380,029 $ Special Revenue Capital Projects Tentative Draft - Internal llllDis 526526 Discussi - 65 -- 375,121,121 375,386375,386 sion -- sisi scsccc DisDisDD Purposes - - 81,005005 - 246,006246,00$ -- $ - seseeeosos PP Only, No. 1 To 579,000579,00 380,0 nlynlyyylyly Subject to Change 65,865,8 - 7,414 -- 17,41417,414 17,411$ $ e 65 ee hahaaahahaaa CC VILLAGE OF TWIN LAKES, WISCONSIN COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2025 (74) Park Lake PCB Launch/ Ca pital Dedication Rehabilitation Settlement Marina Pro jects TID No. 1 Totals REVENUES Taxes - $ 150,000$ - $ 39,287$ - $ 300,368$ 489,655 $ Intergovernmental - 15,026 - - - 42,221 57,247 Public Charges for Services 7,500 - - 68,982 - - 76,482 Miscellaneous - 2 - 15,862 550 - 16,414 Total Revenues 7,500 165,028 - 124,131 550 342,589 639,798 EXPENDITURES Current: General Government - - - - - 153 153 Public Works - 33,691 - - - - 33,691 Culture and Recreation - 12,989 - 29,170 - - 42,159 Conservation and Development - 36,687 - - - 150 36,837 Total Expenditures - 83,367 - 29,170 - 303 112,840 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 7,500 81,661 - 94,961 550 342,286 526,958 OTHER FINANCING USES Long-Term Debt Issued - - - - 50,001 - 50,001 Transfers Out - - - (39,287) - (159,784) (199,071) Total Other Financing Sources (Uses) - - - (39,287) 50,001 (159,784) (149,070) NET CHANGE IN FUND BALANCES 7,500 81,661 - 55,674 50,551 182,502 377,888 Fund Balances - Beginning, as Originally Stated 111,129 293,725 17,414 391,080 - 323,397 1,136,745 Change Within Financial Reporting Entity( Major to Nonmajor) - - - - 56,233 - 56,233 Fund Balance - Beginning, as Adjusted 111,129 293,725 17,414 391,080 56,233 323,397 1,192,978 FUND BALANCES - END OF YEAR 118,629$ 375,386 $ 17,414 $ 446,754 $ 106,784 $ 505,899 $ 1,570,866 $ Special Revenue Capital Projects Tentative Draft - Internal 375,375 lalDiscussio 55555 17,41414 ion -- ((39,28739,287) ((39,28739,287)) ,725,72 ononioio scscDDDD Purposes 342,589589 153 - -- - -- 5555 s - ss rprppprprppp OOnly, Totalsls 489,655489,65 57,24757 76,4 1 nlynlyOO Subject to 17 ooChange 91,0800 - ,414414 391 44 $ $ hahaCCChChCCCC VILLAGE OF TWIN LAKES, WISCONSIN COMBINING STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS DECEMBER 31, 2025 (75) Tax Collection Develo pers Fund De posits Totals ASSETS Cash and Investments 2,982,342 $ 23,090 $ 3,005,432 $ Receivables: Taxes 14,304,530 - 14,304,530 Total Assets 17,286,872 23,090 17,309,962 LIABILITIES Due to Other Governments 63 - 63 DEFERRED INFLOWS Property Taxes Levied for the Subsequent Year 17,286,809 - 17,286,809 NET POSITION Restricted for Individuals - $ 23,090$ 23,090 $ Custodial Funds Draft - Internal Discussion 99 -- ooonon ssss Purposes $ $ - 3,09090 osos PuPu ss Only, TotalsTotals 00OO Subject to Change gege VILLAGE OF TWIN LAKES, WISCONSIN COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED DECEMBER 31, 2025 (76) Tax Collection Develo pers Fund De posits Totals ADDITIONS Taxes and Special Charges Collected 17,412,049 $ - $ 17,412,049$ DEDUCTIONS Payments to Individuals - 589 589 Payments to Other Taxing Districts 17,412,049 - 17,412,049 Total Deductions 17,412,049 589 17,412,638 CHANGE IN NET POSITION - (589) (589) Net Position - Beginning of Year - 23,679 23,679 NET POSITION - END OF YEAR -$ 23,090$ 23,090 $ Custodial Funds Tentative Draft - Internal Discussion -- ooononsis Purposes 11 58989 -- 58958 rprpurpurp O41Only, TotalsTotals OO Subject to Change $ ee (77) ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS Tentative Draft - Internal Discussion Purposes ORT RT Only, Subject to Change (78) INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Village Board Village of Twin Lakes, Wisconsin Twin Lakes, Wisconsin We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Village of Twin Lakes, Wisconsin, (the Village) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements, and have issued our report thereon dated REPORT DATE. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, 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 purpose 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. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of findings and responses as items 2025-001 and 2025-002 that we consider to be significant deficiencies. Tentative n o ment of ent o basis. A basis. A t is less ss less s with goverth gover Our cOur c sese Draft ternal cornal co employeemployee orrect, morrect, m deficidefic h - Internal cial Reial Re t of the fiof the fi nternal cornal co ces for tces for purpose rpose we do we do Discussion generally generally contained ntained s, the finathe fina nd, and th, and t s of and ff and f which collehich colle on dated Ron dated R popo Purposes S Only, Subject an trol) asol) as e purposepurpos expressingexpres ot express aexpress xists wxists rm to ting ng cial statial sta a Change GovGov cial statemal state aggregate ggrega the year enhe year en tively comptively com EPORT DATEPORT DA Village Board Village of Twin Lakes, Wisconsin (79) Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Village of Twin Lakes, Wisconsin’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Village’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The Village’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Green Bay, Wisconsin REPORT DATE Tentative Draft - Internal Discussion otheoth ss no ops no op e scope scope to provido provi report iseport dards dards in in is not suis not s Purposes ance ch an oph an o at are requt are re ted procedted proced ccompanyccompa r audra Only, are free re free ns of laws,ns of laws a direct aa direct with twith i Subject to Change f our testinur tes an opinionn opinio an integral integ onsidering onsiderin able for anyble for a VILLAGE OF TWIN LAKES, WISCONSIN SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED DECEMBER 31, 2025 (80) Internal Control Over Financial Reporting FINDING NO. CONTROL DEFICIENCIES 2025-001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Management and the Board of the Village share the ultimate responsibility for the Village’s internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Village engages CLA to assist in preparing its financial statements and accompanying disclosures. However, as independent auditors, CLA cannot be considered part of the Village’s internal control system. As part of its internal control over the preparation of its financial statements, including disclosures, the Village had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the Village’s activities and operations. Criteria or Specific Requirement: The preparation and review of the annual financial report and municipal financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Cause: Village management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Effect: The Village may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Repeat Finding: This is a repeat of Finding 2024-001. Recommendation: We recommend the Village continue reviewing the annual financial report. Views of Responsible Officials and Corrective Actions: The Village has continued to contract with an outside accounting firm to handle month-end and year-end close, which includes reviewing the financial reports. Tentative peat Findeat Fin RecomRecom ViV Draft trainitrain disclodisclo T - e e ng Internal n and revand rev aff with exwith ex nt, detect, detec al statemestateme mama Discussion reparipar s indepeindepe nal contral contr nancial stancial s prehensivehensiv g note dnote d hould beould be of accounof accoun knowledgknowled Purposes porting rting ltimate respmate re eptable to ptable al control caal control ca ng itsng Only, ly, On Subject ew w ertise inrtise in and correcd cor ts or notes or not agement haagement ff to becomf to beco utweigutwe to of the of the f Change s tementment review proview p closures, aosures, performed brformed ng principlesg princip of the Villaof the Vil VILLAGE OF TWIN LAKES, WISCONSIN SCHEDULE OF FINDINGS AND RESPONSES (CONTINUED) YEAR ENDED DECEMBER 31, 2025 (81) Internal Control Over Financial Reporting (Continued) FINDING NO. CONTROL DEFICIENCIES 2025-002 Adjustments to the Village’s Financial Records Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: As part of our audit, we proposed adjusting journal entries to the Village’s financial statements. Criteria or Specific Requirement: Internal controls over financial reporting require close review of year-end balances and activity to ensure they are in accordance with generally accepted accounting principles (GAAP), for both the modified accrual and full accrual government-wide financial statements. Cause: While Village staff maintains financial records which accurately report receipts and disbursements throughout the year, the Village is working to fine tune processes for timing at year-end for entries especially those related to payables. Effect: Year-end financial records prepared by the Village may contain misstatements. Repeat Finding: This is a repeat to Finding 2024-002. Recommendation: We recommend the Village continue to review and approve adjustments, along with reviewing support for the adjustments and continuing to evolve month-end and year-end close processes. Views of Responsible Officials and Corrective Actions: The Village is continuing to evolve duties within the Village and will continue to review adjusting and closing entries. Tentative Draft ns: Thens: Th - Internal ecorco t to Findino Findin mmend thmend th viewing sviewing s ar-end ar-end Discussion reqreq e in accon acco oth the mh the m nts. s. financial nancial hout the out the ear-end foear-end fo ds prds pr Purposes porting rting nal entries entrie uire cuire Only, ly, On Subject 2020 Village conillage pport for thort for ose processe proce to ar 024-00224-00 Change od ecords whicords wh ear, the Vr, the entries espentries es ed by thed by P a g e | 1 Village of Twin Lakes Police Department Monthly Activity Report Reporting Period: April 1 – April 30, 2026 Submitted by: Chief of Police Katie Hall Meeting Date: May 18, 2026 Executive Summary During the month of April 2026, the Police Department responded to 611 calls for service, conducted 743 extra patrols/traffic, made 8 criminal arrests, and conducted 93 traffic enforcement actions while continuing training initiatives and community engagement efforts. Overall activity levels remained consistent with seasonal expectations. Calls for Service Overview Category April Suspicious Activity 24 Medical Assists 28 DC/DV 9 Alarm Calls 27 Theft / Property Crimes 1 Welfare Checks 28 Motor Vehicle Crashes 1 Sexual Assaults/ICAC 0 Extra Patrols/Traffic 743 Assist Other Agencies 14 All Other Calls 479 Follow-Up Investigation 74 Jail Transports 3 Total Calls for Service: 1428 Note: Total calls include officer-initiated activity, extra patrols, and follow-up investigations. P a g e | 2 Criminal (Circuit Court) Arrest Activity Charge Type April Felony 8 Misdemeanor 16 Total Criminal Charges: 24 Traffic/Ordinance Enforcement Activity April Traffic Stops 93 Citations Issued 29 Written Warnings 2 Verbal Warnings 98 OWI Arrests 1 Other Citations 54 Total Traffic Enforcement 277 Non-Criminal and Ordinance Arrests: 24 Significant Incidents • The department has received several complaints regarding unsafe operation of electric bicycles (e-bikes) within the Village. Officers are continuing efforts focused on education, voluntary compliance, and enforcement when appropriate to address safety concerns. • The department continues to take reports involving fraud and scam-related incidents. These investigations are often complex and time-consuming; however, several cases have been successfully resolved. The department is also working to develop educational outreach opportunities for community members and senior groups to help prevent future victimization. • 04/11 - Officers responded to a disorderly conduct complaint involving a neighbor dispute that escalated into a physical altercation inside a residential garage. Following review of witness statements and video evidence, both involved parties were issued municipal citations for disorderly conduct. • 04/11 - Officers responded to a disturbance at a local business involving an unwanted subject reportedly violating a no-contact order. After multiple P a g e | 3 unsuccessful attempts to gain voluntary compliance, officers made entry into a locked restroom and the subject was taken into custody without incident. • 04/12 - Officers assisted the Kenosha County Sheriff’s Office that occurred outside the Village limits with a serious rollover crash involving multiple injured occupants and a fleeing driver. Twin Lakes officers assisted with follow-up investigative efforts, intelligence gathering, and area canvassing related to the incident. • 04/14 - Officers investigated a threats complaint involving repeated harassing phone calls and threats of violence. Following investigation, charges including disorderly conduct, harassment, stalking, and unlawful use of a telephone were referred to the District Attorney’s Office. • 04/14 - Officers conducted a traffic stop after receiving an alert for a vehicle with expired registration associated with a suspended driver. During the stop, officers observed furtive movements and located open intoxicants and drug-related items inside the vehicle. The driver was taken into custody and transported to the Twin Lakes Police Department for processing. • 04/16 - Officers responded to Lance Park for a disorderly conduct complaint involving multiple juveniles throwing eggs and other objects during an ongoing dispute. Several juveniles were issued municipal citations for disorderly conduct, and parents/guardians were contacted. • 04/16 - Officers responded to a report of a subject attempting to enter a residence while intoxicated. The subject was located nearby and taken into custody after refusing to properly identify himself and providing false identifying information. Charges included obstructing an officer and disorderly conduct. • 04/18 - Officers conducted a traffic stop on a vehicle displaying expired registration plates. During the stop, officers detected the odor of marijuana coming from the vehicle and conducted an investigation which led to the recovery of marijuana, suspected MDMA, and drug paraphernalia. One subject was arrested and cited for possession-related offenses, with additional charges submitted following the discovery of suspected controlled substances and prior drug-related convictions. • 04/19 - Officers identified and cited a juvenile responsible for vandalizing the bathrooms at the Scout House. Multiple municipal citations were issued as part of the investigation. • 04/21 - Officers conducted a traffic stop on a vehicle operating without illuminated lights during hours of darkness. During the stop, officers developed probable cause to search the vehicle for suspected narcotics; however, the driver fled from the scene, leading officers on a pursuit through the Village. Officers observed the driver exit the vehicle and flee on foot into a Tan Oak apartment building. Officers secured P a g e | 4 the scene while obtaining a search warrant, and the suspect was ultimately taken into custody without further incident. Charges included fleeing an officer, resisting an officer, possession with intent to deliver, possession of marijuana, possession of cocaine, and possession of drug paraphernalia. • 04/24 & 04/25 - Officers responded to multiple complaints involving juveniles harassing and bullying other juveniles in public areas of the Village. Warnings were issued, and officers addressed the incidents with involved parties and guardians. • Throughout April, the department responded to multiple complaints involving unsafe juvenile behavior and disorderly activity at Lance Park and other public areas. Officers continue efforts focused on enforcement, education, and parental involvement to address ongoing concerns and improve behavior in public spaces. Community Policing & Outreach • SRO Phelps assisted an 8th Grade Civics class by answering questions related to the Bill of Rights and law enforcement. • Participated in and assisted with a school tornado drill and emergency preparedness exercise • SRO Phelps attended a school reunification tabletop exercise focused on emergency response planning and coordination. • SRO Phelps assisted with a spring tabletop activity involving school safety and preparedness. • SRO Phelps taught 7th Grade alcohol and drug awareness classes. • Officer Mireles participated off duty representing the Village during the community Color Run event, completing the full race in full uniform. • Officers assisted with traffic and pedestrian safety during the Color Run organized by the Twin Lakes Chamber of Commerce. • Continued positive community engagement efforts through school involvement, community events, and proactive interaction with residents. Training Department personnel completed the following training to enhance operational readiness, strengthen leadership skills, and improve coordination with partner agencies. • 2026 DNR Boat Patrol Training • FBI LEEDA Training • LESB-Defensive Tactics Transition Course P a g e | 5 • Electrical Safety for First Responders • LESB-Defensive Tactics Transition Course • 40MM Less Lethal Training • SWAT Training • Field Training Officer School Total Training Hours Completed: 157 Staffing Update • Current sworn staffing level: 14 full-time officers 1 Part-time officers • Full-time Vacancies: 1 • Officers in field training: 1 • Current dispatch staffing level: 5 full-time dispatchers 4 Part-time dispatchers • Full-time Vacancies: 0 • Dispatchers in field training: 0 Dispatcher Gaby Castaneda successfully completed training and moved to solo assignment. Equipment / Administrative Updates • Continued routine squad maintenance and fleet upkeep to ensure operational readiness. • The department continues to obtain and review quotes related to the anticipated roof replacement project. • All interviews for the current patrol officer vacancy have been completed. • Officers assisted with the Twin Lakes Chamber of Commerce Color Run event, which concluded without incident. • Water patrol staffing has been completed for the upcoming season, consisting of five returning members and four new members. • Officers continue progressing toward FAA drone certification, with department drone training to be scheduled in the near future. • Ongoing evaluation and planning for replacement of aging equipment and technology needs. • Continued identification and pursuit of grant opportunities to support equipment modernization and operational readiness. Looking Ahead Priorities for the upcoming month include: P a g e | 6 • Filling the open patrol officer position and begin field training • Officer Sergio Kips completing field training • Officer Zach Zeyen graduation from the police academy • Continued review and planning for replacement of aging equipment as part of the 2027 budget process • Identification and application for additional grant opportunities to support equipment and technology upgrades • Continued pursuit of grant funding and other opportunities to support employee wellness and fitness initiatives • Continued focus on proactive patrol and community visibility as warmer weather approaches • Water patrol onboarding and summer readiness preparation • Strengthening partnerships with schools, businesses, and community organizations Conclusion The Police Department continues to provide proactive and responsive service to the community while maintaining a strong focus on professionalism, preparedness, and community engagement. Staff remained active throughout the month supporting public safety initiatives, training efforts, and positive community interaction. Respectfully Submitted, Katie Hall Chief Katie Hall