Shorewood officials were happy to hear the village is in “sound fiscal condition” upon reviewing financial reports at a Village Board meeting Tuesday.
The village acquired the services of Foster and Foster Actuaries and Consultants for the annual valuation of the police pension fund.
“The police pension fund is funded very well; there is nothing that Shorewood needs to be concerned about,” Mayor Rick Chapman said.
In her report to the board, Finance Director Anne Burkholder said the current year’s funded ratio was 81.2%, a decrease from last year’s ratio of 84.3%.
“Several factors contributed to the decrease in funding ratios, including poor investment returns in the final quarter of fiscal year 2019, as well as a change in the mortality assumptions for current and future pensioners,” Burkholder said.
Chapman said the state has a goal for municipalities to be 100% funded in the police pension fund, but “anytime you get over 65 to 70% funded, you are usually in good shape.”
He said the village strives to be over the state average in order to stay healthy, and if the village can easily maintain that level of funding, it makes finances more stable.
“Historically, we have put more in the police pension fund than the minimum requirement because we recognize that we have a growing community, a growing police department and a growing fund,” Burkholder said.
Burkholder and village Administrator Jim Culotta presented the 2019 Comprehensive Annual Financial Report to the trustees. The financial statements and independent auditor’s report were prepared by Sikich accounting firm, and the village received an unmodified opinion from the company as well as a Certificate of Achievement for Excellence in Financial Reporting form the Government Finance Officers Association for Comprehensive Annual Financial Reports.
According to Sikich’s report, the total net position of the village increased by $1,469,097 over 2018, where governmental activities accounted for an increase of $90,000 and business-type activities grew by $1.38 million.
General Fund revenue in 2018 was $13.67 million and $14.2 million in 2019 with a variance of $535,999, an increase of 3.92%. General Fund expenditures for 2018 were $12.67 million and $12.48 million for 2019, a variance of $191,113.
“We are in great fiscal shape when it comes to cash we have to operate. The expenditures versus the revenue are totally balanced; we are in sound fiscal condition,” Chapman said.