Finance Commission

Agenda Village of Glen Ellyn Finance Commission Special Meeting Friday, June 27, 2025 7:00 AM Glen Ellyn Civic Center, Room 301 Visitors are most welcome to attend all meetings of the Finance Commission and can find copies of the Agenda at the meeting or online at www.glenellyn.org prior to the meeting. Any individual with a disability requiring reasonable accommodation in order to participate in a meeting should contact The Village of Glen Ellyn ADA Coordinator, 630-469-5000, at least five (5) business days in advance of the next scheduled meeting. All matters on the Agenda may be discussed, amended, and acted upon. A. Call to Order B. Roll Call C. Public Comment D. Police Pension Actuarial Valuation 1) 2025 Police Pension Actuarial Report Presentation E. Financial Reports 1) First Quarter Financial Report F. Staff Report G. Chairperson's Report H. Trustee Liaison's Report I. Other Business J. Reminders K. Adjourn Village of Glen Ellyn Page 1 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation As of January 1, 2025 Contributions Applicable to the Plan/ Fiscal Year Ending December 31, 2026 Page 2 of 59 May 20, 2025 Patrick Brankin, CPA Village of Glen Ellyn Police Pension Fund Re: Village of Glen Ellyn Police Pension Fund Dear Mr. Brankin, This report details the annual actuarial valuation of the Village of Glen Ellyn Police Pension Fund as of January 1, 2025. The valuation was performed to measure the plan’s liability and funding levels and to determine the actuarially appropriate funding requirements for the plan year ending December 31, 2026. This report was prepared for use by the Village. Use of the results for other purposes may not be applicable and could produce significantly different results. DATA AND ASSUMPTIONS In preparing this report, we have relied on personnel and plan design supplied by the Village of Glen Ellyn. Assets were determined based on financial reports supplied by the Village. In our opinion, the assumptions used in the valuation, as adopted by the Village, represent reasonable expectations of anticipated fund experience. Other sets of assumptions and methods could also be reasonable and could produce materially different results. While we cannot verify the accuracy of all this information, the supplied information was reviewed for consistency and reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the information and believe that it has produced appropriate results. This information, along with any adjustments or modifications, is summarized in various sections of this report. DISCLOSURES AND LIMITATIONS Future actuarial measurements may differ significantly from the current measurements presented in this report due to factors such as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in plan provisions or applicable law. Due to the limited scope of this report, we did not provide an analysis of these potential differences. The funding percentages and unfunded accrued liability as measured based on the actuarial value of assets will differ from similar measures based on the market value of assets. These measures, as provided, are appropriate for determining the adequacy of future contributions, but may not be appropriate for the purpose of settling a portion or all of its liabilities. In performing the analysis, we used third-party software to model (calculate) the underlying liabilities and costs. These results are reviewed in the aggregate and for individual sample lives. The output from the 184 Shuman Blvd, Suite 305 Naperville, IL 60563 · (630) 620-0200 · www.foster-foster.com Page 3 of 59 software is either used directly or input into internally developed models to generate the costs. All internally developed models are reviewed as part of the process. As a result of this review, we believe that the models have produced reasonable results. We do not believe there are any material inconsistencies among assumptions or unreasonable output produced due to the aggregation of assumptions. ACTUARIAL CERTIFICATION The valuation has been conducted in accordance with all applicable laws and regulations, as well as generally accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards Board; specifically No. 4 for Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, No. 23 for Data Quality, No. 27 for Selection of Economic Assumptions for Measuring Pension Obligations, No. 35 for Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, No. 44, Selection and Use of Asset Valuation Methods for Pension Valuations, and No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations. In our opinion, the Minimum Required Contribution set forth in this report constitutes a reasonable actuarially determined contribution under Actuarial Standard of Practice No. 4. The undersigned are familiar with the immediate and long-term aspects of pension valuations and meet the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. All of the sections of this report are considered an integral part of the actuarial opinions. To our knowledge, no associate of Foster & Foster, Inc. working on this report has any direct financial interest or indirect material interest in the Village of Glen Ellyn, nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the Village of Glen Ellyn Police Pension Fund. Thus, there is no relationship existing that might affect our capacity to prepare and certify this actuarial report. Respectfully submitted, Foster & Foster, Inc. ________________________________ ____________________________ Jason L. Franken, FSA, EA, MAAA Heidi E. Andorfer, FSA, EA, MAAA 2 Page 4 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation TABLE OF CONTENTS S UMMARY 5 C HANGES S INCE PRIOR VALUATION 6 VALUATION RESULTS 7 Principal Valuation Results 7 Actuarial Present Value of Accrued Benefits 9 Contribution Requirements 10 Reconciliation of Changes in Contribution Requirement 11 Other Information 12 ACTUARIAL GAIN LOSS 13 UNFUNDED ACTUARIAL ACCRUED LIABILITY 14 Development of Unfunded Actuarial Accrued Liability 14 HISTORY OF FUNDING PROGRESS 15 PROJECTION OF BENEFIT PAYMENTS 16 ASSET INFORMATION 17 PARTICIPANT S TATISTICS 22 Statistical Data 22 Age and Service Distribution 23 Participant Reconciliation 24 ACTUARIAL ASSUMPTIONS AND METHODS 25 PLAN PROVISIONS 29 S UPPLEMENTARY INFORMATION 32 Glossary 32 Discussion of Risk 35 Statutory Minimum Required Contribution 39 4 Page 5 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation SUMMARY The regular annual actuarial valua on of the Village of Glen Ellyn Police Pension Fund, performed as of January 1, 2025, has been completed and the results are presented in this report. The contribu on amounts set forth herein are applicable to the plan/fiscal year ended December 31, 2026. The contribu on requirements, compared with those set forth in the January 1, 2024 actuarial report, are as follows: Valuation Date 1/1/2025 1/1/2024 Applicable to Fiscal Year Ending 12/31/2026 12/31/2025 FUNDED S TATUS Total Actuarial Accrued Liability $ 68,296,635 $ 65,535,478 Actuarial Value of Assets 42,052,296 40,755,672 Unfunded Actuarial Accrued Liability $ 26,244,339 $ 24,779,806 Funded Ratio 61.6% 62.2% C ONTRIBUTION REQUIREMENTS Normal Cost $ 1,301,001 $ 1,201,726 Administrative Expenses 66,212 72,613 Amortization Payment 2,181,670 1,966,440 Total Recommended Contribution $ 3,548,883 $ 3,240,779 Member Contributions (Est.) (526,883) (478,110) Village Recommended Contribution $ 3,022,000 $ 2,762,669 C ONTRIBUTION REQUIREMENTS (AS A PERCENTAGE OF PAYROLL) Normal Cost 24.5% 24.9% Administrative Expenses 1.2% 1.5% Amortization Payment 41.0% 40.8% Total Recommended Contribution 66.7% 67.2% Member Contributions (Est.) (9.9)% (9.9)% Village Recommended Contribution 56.8% 57.3% As you can see, the contribu on shows an increase from the January 1, 2024 actuarial valua on report. The increase is a ributable to net unfavorable plan experience, an increase in normal cost associated with an increase in ac ve membership, and the natural increase in amor za on payment due to the payroll growth assumption. Plan experience was unfavorable overall on the basis of the plan's actuarial assump ons. Sources of actuarial loss included an investment return of 4.25% (Actuarial Asset Basis) which fell short of the 6.50% assump on and an average salary increase of 6.59% which exceeded the 5.83% assump on. There were no significant sources of actuarial gain. 5 Page 6 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation CHANGES SINCE PRIOR VALUATION PLAN CHANGES There have been no plan changes since the prior valuation. ACTUARIAL ASSUMPTION/METHOD CHANGES There have been no assumption or method changes since the prior valuation. 6 Page 7 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation VALUATION RESULTS PRINCIPAL VALUATION RESULTS Valuation Date 1/1/2025 1/1/2024 PARTICIPANT DATA Actives 45 43 Service Retirees 29 30 Beneficiaries 6 5 Disability Retirees 3 3 Terminated Vested 11 13 Total 94 94 Total Annual Payroll $ 5,316,683 $ 4,824,524 Projected Annual Payroll $ 5,316,683 $ 4,824,524 Annual Rate of Payments to: Service Retirees $ 2,467,441 $ 2,438,457 Beneficiaries 395,559 352,676 Disability Retirees 142,157 141,703 Terminated Vested 180,400 194,945 ASSETS Actuarial Value (AVA) $ 42,052,296 $ 40,755,672 Market Value (MVA) 41,484,269 38,269,224 LIABILITIES Present Value of Benefits Actives Retirement Benefits $ 31,229,661 $ 28,033,189 Disability Benefits 2,779,256 2,569,426 370,607 344,813 Death Benefits Vested Benefits 2,063,141 1,993,200 Service Retirees 35,523,359 35,724,531 Beneficiaries 3,176,615 3,031,335 Disability Retirees 2,145,837 2,138,899 Terminated Vested 3,070,457 3,058,747 Total $ 80,358,933 $ 76,894,140 7 Page 8 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation Valuation Date 1/1/2025 1/1/2024 LIABILITIES (CONTINUED) Present Value of Future Salaries $ 58,618,201 $ 53,923,203 Present Value of Member Contributions $ 5,809,064 $ 5,343,789 Normal Cost Retirement $ 914,991 $ 842,518 Disability 155,200 141,258 Death 20,621 19,174 Vesting 130,785 125,431 Total Normal Cost $ 1,221,597 $ 1,128,381 Present Value of Future Normal Cost (EAN) $ 12,062,298 $ 11,358,662 Actuarial Accrued Liability (EAN AL) Actives Retirement $ 21,998,595 $ 19,319,121 Disability 1,077,271 996,602 Death 132,294 126,616 Vesting 1,172,207 1,139,627 Inactives 43,916,268 43,953,512 Total Actuarial Accrued Liability $ 68,296,635 $ 65,535,478 Unfunded Actuarial Accrued Liability (UAAL) $ 26,244,339 $ 24,779,806 Funded Ratio (AVA / EAN AL) 61.6% 62.2% 8 Page 9 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation ACTUARIAL PRESENT VALUE OF ACCRUED BENEFITS Valuation Date 1/1/2025 1/1/2024 Vested Accrued Benefits Inactives $ 43,916,268 $ 43,953,512 Actives 7,655,673 6,048,369 Member Contributions 4,184,371 3,717,255 Total $ 55,756,312 $ 53,719,136 Non-vested Accrued Benefits 1,259,052 1,179,246 Total Present Value of Accrued Benefits (PVAB) $ 57,015,364 $ 54,898,382 Funded Ratio (MVA / PVAB) 72.8% 69.7% Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments $ 0 Assumption Changes 0 Plan Experience 1,721,824 Benefits Paid (3,073,353) Interest 3,468,511 Other 0 Total $ 2,116,982 9 Page 10 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation CONTRIBUTION REQUIREMENTS Valuation Date 1/1/2025 1/1/2024 Applicable to Fiscal Year Ending 12/31/2026 12/31/2025 C ALCULATION OF C ONTRIBUTION REQUIREMENT¹ Normal Cost $ 1,301,001 $ 1,201,726 % of Total Annual Payroll 24.5% 24.9% Administrative Expenses 66,212 72,613 % of Total Annual Payroll 1.2% 1.5% UAAL Amortization Payment 2,181,670 1,966,440 % of Projected Annual Payroll 41.0% 40.8% Total Recommended Contribution $ 3,548,883 $ 3,240,779 % of Projected Annual Payroll 66.7% 67.2% Expected Member Contributions (526,883) (478,110) % of Projected Annual Payroll (9.9)% (9.9)% Expected Village Contribution $ 3,022,000 $ 2,762,669 % of Projected Annual Payroll 56.8% 57.3% PAST C ONTRIBUTIONS FOR PLAN YEAR ENDING 12/31/2024 Total Recommended Contribution $ 2,647,199 Village Requirement 2,152,136 Actual Contributions Made: Members (excluding buyback) 495,063 Village 2,152,200 Total $ 2,647,263 ¹ Contributions developed as of 1/1/2025 displayed above have been adjusted to account for assumed interest. 10 Page 11 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation RECONCILIATION OF CHANGES IN CONTRIBUTION REQUIREMENT Valuation Date 1/1/2025 Contribution Determined, Prior Year $ 2,762,669 Summary of Impact on Contribution by Component Change in Normal Cost 99,275 Change in Assumed Administrative Expense (6,401) Investment Return (Actuarial Asset Basis) 75,844 Salary Increases 23,750 Active Decrements (9,838) Inactive Mortality 14,598 Contributions (More) or Less than Recommended (5) Increase in Amortization Payment Due to Payroll Growth Assumption 63,909 Change in Expected Member Contributions (48,773) Other 46,972 Total Change in Contribution $ 259,331 Contribution Determined, Current Year $ 3,022,000 11 Page 12 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation OTHER INFORMATION ILLUSTRATION OF AMORTIZATION OF THE TOTAL UNFUNDED ACTUARIAL ACCRUED LIABILITY Projected Unfunded Actuarial Accrued Year Liability 2025 26,244,339 2026 25,768,551 2027 25,190,934 2031 23,007,070 2034 21,494,340 2038 19,630,943 2041 18,340,195 5-YEAR COMPARISON OF ACTUAL AND ASSUMED SALARY INCREASES Year Ended Actual Assumed 12/31/2024 6.59% 5.83% 12/31/2023 14.21% 5.58% 12/31/2022 1.55% 5.66% 12/31/2021 7.56% 5.53% 12/31/2020 3.83% 4.98% 5-YEAR COMPARISON OF INVESTMENT RETURN ON MARKET VALUE AND ACTUARIAL VALUE OF ASSETS Market Actuarial Year Ended Value Value Assumed 12/31/2024 9.56% 4.25% 6.50% 12/31/2023 13.46% 3.06% 6.50% 12/31/2022 (12.25)% 2.75% 6.50% 12/31/2021 11.00% 11.00% 6.50% 12/31/2020 9.45% 7.23% 6.50% 12 Page 13 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation ACTUARIAL (GAIN)/LOSS DEVELOPMENT OF ACTUARIAL (GAIN)/LOSS Unfunded Actuarial Actuarial Actuarial Accrued Valuation Accrued Liability of Assets Liability Actual, Beginning of Year $ 65,535,478 $ 40,755,672 $ 24,779,806 Total Normal Cost 1,128,381 1,128,381 Benefit Payments (3,073,353) (3,073,353) 0 Administrative Expenses (62,171) 62,171 Employer Contribution 2,152,200 (2,152,200) Member Contribution and Buybacks 63,745 558,808 (495,063) Interest 4,234,839 2,633,500 1,601,339 Expected, End of Year $ 67,889,090 $ 42,964,656 $ 24,924,434 Actual End of Year (before changes) 68,296,635 42,052,296 26,244,339 Actuarial (Gain)/Loss $ 407,545 $ 912,360 $ 1,319,905 SUMMARY OF COMPONENTS OF (GAIN)/LOSS Investment Return (Actuarial Asset Basis) 848,615 $ 912,360 Salary Increases 285,698 285,698 Active Decrements (118,348) (118,348) Inactive Mortality 175,611 175,611 Other 128,329 64,584 Change due to Actuarial (Gain)/Loss 1,319,905 $ 1,319,905 13 Page 14 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation UNFUNDED ACTUARIAL ACCRUED LIABILITY DEVELOPMENT OF UNFUNDED ACTUARIAL ACCRUED LIABILITY Unfunded Actuarial Accrued Liability as of January 1, 2024 $ 24,779,806 Expected Unfunded Actuarial Accrued Liability as of January 1, 2025 $ 24,924,434 Change to UAAL due to Actuarial (Gain)/Loss 1,319,905 Change to UAAL due to Assumption Change 0 Unfunded Actuarial Accrued Liability as of January 1, 2025 $ 26,244,339 UAAL Subject to Amortization (100% AAL less Actuarial Assets) $ 26,244,339 AMORTIZATION PAYMENT Date Years Current Established Remaining Balance Payment UAAL 1/1/2025 16 26,244,339 2,048,516 14 Page 15 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation HISTORY OF FUNDING PROGRESS Funded Ratio (Actuarial Value of Assets / EAN Actuarial Accrued Liability) 100 90 80 70 60 50 40 30 20 10 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 15 Page 16 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation PROJECTION OF BENEFIT PAYMENTS Payments for Payments for Year Current Actives Current Inactives Total Payments 2025 91,576 3,058,149 3,149,725 2026 159,736 3,014,972 3,174,708 2027 236,526 3,053,257 3,289,783 2028 340,108 3,158,717 3,498,825 2029 495,979 3,185,129 3,681,108 2030 652,181 3,311,183 3,963,364 2031 809,988 3,323,623 4,133,611 2032 1,003,876 3,339,466 4,343,342 2033 1,212,260 3,339,247 4,551,507 2034 1,412,887 3,347,074 4,759,961 2035 1,611,199 3,334,870 4,946,069 2036 1,818,362 3,315,043 5,133,405 2037 2,010,323 3,287,694 5,298,017 2038 2,193,990 3,252,976 5,446,966 2039 2,365,781 3,211,085 5,576,866 2040 2,539,022 3,204,051 5,743,073 2041 2,717,939 3,149,980 5,867,919 2042 2,892,464 3,090,019 5,982,483 2043 3,070,876 3,024,477 6,095,353 2044 3,303,628 2,953,997 6,257,625 2045 3,525,559 2,879,271 6,404,830 2046 3,776,275 2,800,829 6,577,104 2047 4,037,143 2,719,670 6,756,813 2048 4,320,312 2,635,365 6,955,677 2049 4,666,285 2,547,882 7,214,167 2050 4,958,694 2,457,012 7,415,706 2051 5,259,845 2,362,443 7,622,288 2052 5,535,801 2,263,809 7,799,610 2053 5,790,269 2,160,799 7,951,068 2054 6,001,964 2,053,287 8,055,251 2055 6,169,571 1,941,414 8,110,985 2056 6,338,993 1,825,669 8,164,662 2057 6,524,929 1,707,010 8,231,939 2058 6,670,702 1,586,774 8,257,476 2059 6,777,817 1,466,622 8,244,439 2060 6,861,668 1,348,415 8,210,083 2061 6,925,500 1,234,011 8,159,511 2062 6,970,962 1,125,217 8,096,179 2063 6,995,317 1,023,447 8,018,764 2064 6,998,562 929,687 7,928,249 16 Page 17 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation ASSET INFORMATION STATEMENT OF FIDUCIARY NET POSITION Market Value 12/31/2024 ASSETS Cash and Cash Equivalents: Checking Account 34,458 Total Cash and Equivalents $ 34,458 RECEIVABLES Prepaids 2,795 Total Receivable $ 2,795 INVESTMENTS Pooled/Common/Commingled Funds 41,447,816 Total Investments $ 41,447,816 TOTAL ASSETS $ 41,485,069 LIABILITIES Payables: Miscellaneous 800 Total Liabilities $ 800 NET POSITION RESTRICTED FOR PENSIONS $ 41,484,269 17 Page 18 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation STATEMENT OF CHANGES IN FIDUCIARY NET POSITION Year Ended 12/31/2024 ADDITIONS Contributions: Member $ 495,063 Buy-Back 63,745 Employer 2,152,200 Total Contributions $ 2,711,008 Investment Income: Net Increase in Fair Value of Investments $ 3,663,801 Interest & Dividends 0 Less Investment Expense¹ (24,240) Net Investment Income $ 3,639,561 Total Additions $ 6,350,569 DEDUCTIONS Distributions To Members: Benefit Payments $ 2,922,324 Refunds of Member Contributions 151,029 Total Distributions $ 3,073,353 Administrative Expense $ 62,171 Total Deductions $ 3,135,524 NET INCREASE IN NET POSITION $ 3,215,045 NET POSITION RESTRICTED FOR PENSIONS Beginning of the Year $ 38,269,224 End of the Year $ 41,484,269 ¹ Investment related expenses include investment advisory, custodial and performance monitoring fees. 18 Page 19 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS 12/31/2024 ACTUARIAL VALUE OF ASSETS Market Value of Assets $ 41,484,269 Total Deferred Investment (Gains)/Losses 568,027 Preliminary Actuarial Value of Assets $ 42,052,296 Limited Actuarial Value of Assets $ 42,052,296 DEVELOPMENT OF INVESTMENT (GAIN)/LOSS Market Value of Assets, Prior Year $ 38,269,224 Contributions 2,711,008 Benefit Payments (3,073,353) Administrative Expenses (62,171) Expected Investment Earnings $ 2,473,920 Actual Net Investment Earnings (3,639,561) 2024 Actuarial Investment (Gain)/Loss $ (1,165,641) DEFERRED INVESTMENT (GAIN)/LOSS Percentage Deferred Year Ended (Gain)/Loss Deferred (Gain)/Loss 12/31/2024 (1,165,641) 80% (932,513) 12/31/2023 (2,356,383) 60% (1,413,829) 12/31/2022 7,285,924 40% 2,914,369 12/31/2021 0 20% 0 12/31/2020 0 0% 0 Total Deferred Investment (Gains)/Losses 568,027 APPROXIMATE RATES OF RETURN Basis Rate of Return Actuarial Valuation of Assets 4.25% Market Value of Assets 9.56% 19 Page 20 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation CHANGES IN ASSETS AVAILABLE FOR BENEFITS – ACTUARIAL ASSET BASIS Year Ended 12/31/2024 ADDITIONS Contributions: Member $ 495,063 Buy-Back 63,745 Employer 2,152,200 Total Contributions $ 2,711,008 Earnings from Investments: Interest & Dividends $ 0 Net Increase in Fair Value of Investments 3,663,801 Change in Actuarial Value (1,918,421) Total Earnings and Investment Gains $ 1,745,380 DEDUCTIONS Distributions To Members: Benefit Payments $ 2,922,324 Refunds of Member Contributions 151,029 Total Distributions $ 3,073,353 Expenses: Investment Related¹ $ 24,240 Administrative 62,171 Total Expenses $ 86,411 C HANGE IN NET ASSETS FOR THE YEAR $ 1,296,624 NET ASSETS Beginning of the Year $ 40,755,672 End of the Year² $ 42,052,296 ¹ Investment related expenses include investment advisory, custodial and performance monitoring fees. ² Net Assets may be limited for actuarial consideration. 20 Page 21 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation HISTORY OF ASSET VALUES AND INVESTMENT RETURNS History of Asset Values (Market Value vs Actuarial Value) 45,000,000 40,500,000 36,000,000 31,500,000 27,000,000 22,500,000 18,000,000 13,500,000 9,000,000 4,500,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Actuarial Value of Assets Market Value of Assets History of Investment Returns (Market Value vs Actuarial Value) 20 15 10 5 0 -5 -10 -15 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Return on Actuarial Value of Assets Return on Market Value of Assets Assumed Return 21 Page 22 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation PARTICIPANT STATISTICS STATISTICAL DATA 1/1/2025 1/1/2024 1/1/2023 1/1/2022 ACTIVES - TIER 1 Number 16 16 18 20 Average Current Age 46.3 45.3 44.9 44.4 Average Age at Employment 24.7 24.7 24.7 24.7 Average Past Service 21.6 20.6 20.2 19.7 Average Annual Salary $142,834 $136,103 $122,971 $120,221 ACTIVES - TIER 2 Number 29 27 23 23 Average Current Age 31.6 31.3 30.5 29.3 Average Age at Employment 26.9 27.1 26.3 25.7 Average Past Service 4.7 4.2 4.2 3.6 Average Annual Salary $104,529 $98,033 $85,915 $84,885 S ERVICE RETIREES Number 29 30 30 30 Average Current Age 69.1 68.6 68.5 68.5 Average Annual Benefit $85,084 $81,282 $74,910 $72,064 BENEFICIARIES Number 6 5 5 5 Average Current Age 75.9 73.0 77.5 76.5 Average Annual Benefit $65,927 $70,535 $59,821 $59,821 DISABILITY RETIREES Number 3 3 2 2 Average Current Age 57.0 56.0 64.7 63.7 Average Annual Benefit $47,386 $47,234 $44,043 $43,816 TERMINATED VESTEDS Number 11 13 11 9 Average Current Age ¹ 45.9 37.3 38.1 36.8 Average Annual Benefit ¹ $60,133 $48,736 $63,082 $53,098 ¹ The Average Current Age and Average Annual Benefit exclude participants awaiting a refund of contributions. 22 Page 23 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation AGE AND SERVICE DISTRIBUTION Past Service Age 0 1 2 3 4 5-9 10-14 15-19 20-24 25-29 30+ Total 15 - 19 0 20 - 24 2 1 3 25 - 29 2 3 1 6 30 - 34 1 2 3 1 6 13 35 - 39 1 1 1 1 2 1 7 40 - 44 1 3 2 6 45 - 49 2 3 2 7 50 - 54 2 2 55 - 59 0 60 - 64 1 1 65+ 0 Total 3 6 1 4 5 8 2 8 5 2 1 45 23 Page 24 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation PARTICIPANT RECONCILIATION Members Receiving Receiving Vested Receiving Death Disability (Deferred Vested (Due Actives Benefits Benefits Benefits Annuity) Refund) Total Number, prior valuation 43 30 5 3 4 9 94 New Entrants / Rehires 3 3 Vested (Deferred Annuity) 0 Non-Vested / Vested (Due Refund) 0 Refund of Contributions or Transferred (1) (1) (1) (3) Service to Other Fund Hired/Termed Same Year 0 Retired 0 Disabled 0 Death, With Survivor (1) (1) Death, No Survivor 0 Expired Annuities 0 Data Corrections 0 Other 1 1 Number, current valuation 45 29 6 3 3 8 94 24 Page 25 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation ACTUARIAL ASSUMPTIONS AND METHODS Interest Rate 6.50% per year compounded annually, net of investment related expenses. Mortality Rate Active Lives: PubS-2010 Employee mortality, unadjusted, with generational improvements with the most recent projection scale (currently Scale MP-2021). 10% of active deaths are assumed to be in the line of duty. Inactive Lives: PubS-2010 Healthy Retiree mortality, adjusted by a factor of 1.15 for male retirees and unadjusted for female retirees, with generational improvements with the most recent projection scale (currently Scale MP-2021). Beneficiaries: PubS-2010 Survivor mortality, unadjusted for male beneficiaries and adjusted by a factor of 1.15 for female beneficiaries, with generational improvements with the most recent projection scale (currently Scale MP-2021). Disabled Lives: PubS-2010 Disabled mortality, adjusted by a factor of 1.08 for male disabled members and unadjusted for female disabled members, with generational improvements with the most recent projection scale (currently Scale MP-2021). The mortality assumptions sufficiently accommodate anticipated future mortality improvements. Retirement Age Rates are based on a 2022 experience study performed for the Illinois Police Officers’ Pension Investment Fund. % Retiring During % Retiring During Year (Tier 1) Year (Tier 2) Age Rate Age Rate 50-54 20% 50-54 5% 55-62 25% 55 40% 63 33% 56-62 25% 64 40% 63 33% 65-69 55% 64 40% 70+ 100% 65-69 55% 25 Page 26 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation % Retiring During % Retiring During Year (Tier 1) Year (Tier 2) Age Rate Age Rate 70+ 100% Disability Rate 60% of the disabilities are assumed to be in the line of duty. Rates are based on a 2022 experience study performed for the Illinois Police Officers’ Pension Investment Fund. % Becoming Disabled During Year Age Rate Age Rate 20 0.000% 45 0.561% 25 0.029% 50 0.675% 30 0.133% 55 0.855% 35 0.247% 60 1.093% 40 0.399% Termination Rate Rates are based on a 2022 experience study performed for the Illinois Police Officers’ Pension Investment Fund. % Terminating During Year Service Rate Service Rate 0 13.00% 8 3.00% 1 8.00% 9 2.50% 2 7.00% 10 2.25% 3 6.00% 11 2.00% 4 5.00% 12 1.75% 5 4.50% 13 1.50% 6 4.00% 14+ 1.25% 7 3.50% Inflation 2.50%. Cost-of-Living Adjustment Tier 1: 3.00% per year after age 55. Those that retire prior to age 55 receive an increase of 1/12 of 3.00% for each full month since benefit commencement upon reaching age 55. Tier 2: 1.25% per year after the later of attainment of age 60 or first anniversary of retirement. 26 Page 27 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation Salary Increases Rates inclusive of inflation. This is based on a 2022 experience study performed for the Illinois Police Officers’ Pension Investment Fund. Salary Scale Service Rate Service Rate 0 11.00% 5 6.00% 1 9.50% 6 5.00% 2 8.00% 7-11 4.00% 3 7.50% 12-29 3.75% 4 7.00% 30+ 3.50% Marital Status 80% of Members are assumed to be married. Spouse’s Age Males are assumed to be three years older than females. Funding Method Entry Age Normal Cost Method. Under this method, the normal cost is the sum of the individual normal costs for all active participants. For an active participant, the normal cost is the participant’s normal cost accrual rate, multiplied by the participant’s current compensation. The normal cost accrual rate equals: (i) the present value of future benefits for the participant, determined as of the participant’s entry age, divided by (ii) the present value of the compensation expected to be paid to the participant for each year of the participant’s anticipated future service, determined as of the participant’s entry age. In calculating the present value of future compensation, the salary scale is applied both retrospectively and prospectively to estimate compensation in years prior to and subsequent to the valuation year based on the compensation used for the valuation. The accrued liability is the sum of the individual accrued liabilities for all participants and beneficiaries. A participant’s accrued liability equals the present value, at the participant’s attained age, of future benefits less the present value at the participant’s attained age of the individual normal costs payable in the future. Under this method, the entry age used for each active participant is 27 Page 28 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation the participant’s age at the time he or she would have commenced participation if the plan had always been in existence under current terms, or the age as of which he or she first earns service credits for purposes of benefit accrual under the current terms of the plan. Actuarial Asset Method Market Value of Assets as of January 1, 2022 valuation. Thereafter, investment gains and losses are smoothed over a 5-year period. In the first year, 20% of the gain or loss is recognized. In the second year 40%, in the third year 60%, in the fourth year 80%, and in the fifth year 100% of the gain or loss is recognized. The actuarial investment gain or loss is defined as the actual return on investments minus the actuarial assumed investment return. Actuarial Assets shall not be less than 80% nor greater than 120% of the Market Value of Assets. Funding Policy Amortization Method The UAAL is amortized according to a Level Percentage of Payroll method. The initial amortization amount is 100% of the Accrued Liability less the Actuarial Value of Assets. Ultimately, the amortization period will be a 15-year rolling methodology, with a phase in to 15 years as follows: 2025 16 Year Amortization 2026 and Later 15 Year Amortization The use of a rolling amortization methodology with a reasonable amortization period and coupled with a payroll growth rate that is not too high will produce a significant annual payment towards the principal on the UAAL, resulting in an annual decrease in the UAAL, assuming the actuarial assumptions materialize. Total Required Contribution Equal to the Normal Cost plus Administrative Expenses plus an amount sufficient to amortize the Unfunded Accrued Liability as defined by the Funding Policy Amortization Method. The required amount is adjusted for interest according to the timing of contributions during the year. Payroll Growth 3.25% per year. Administrative Expenses Expenses paid out of the fund other than investment-related expenses are assumed to be equal to those paid in the previous year. 28 Page 29 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation PLAN PROVISIONS Article 3 Pension Fund The Plan is established and administered as prescribed by “Article 3. Police Pension Fund – Municipalities 500,000 and Under” of the Illinois Pension Code. Plan Administration The Plan is a single employer defined benefit pension plan administered by a Board of Trustees comprised of: a.) Two members appointed by the Municipality, b.) Two active Members of the Police Department elected by the Membership, and c.) One retired Member of the Police Department elected by the Membership. Credited Service Complete years of service as a sworn police officer employed by the Municipality. Normal Retirement Date Tier 1: Age 50 and 20 years of Credited Service. Tier 2: Age 55 with 10 years of Credited Service. Benefit Tier 1: 50% of annual salary attached to rank on last day of service plus 2.50% of annual salary for each year of service over 20 years, up to a maximum of 75% of salary. The minimum monthly benefit is $1,000 per month. Tier 2: 2.50% per year of service times the average salary for the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest prior to retirement times the number of years of service, up to a maximum of 75% of average salary. The minimum monthly benefit is $1,000 per month. For Tier 2 participants, the salary is capped at a rate of $106,800 as of 2011, indexed annually at a rate of CPI-U, but not to exceed 3.00%. Form of Benefit Tier 1: For married retirees, an annuity payable for the life of the Member; upon the death of the member, 100% of the Member’s benefit payable to the spouse until death. For unmarried retirees, the normal form is a Single Life Annuity. 29 Page 30 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation Tier 2: Same as above, but with 66 2/3% of benefit continued to spouse. Early Retirement Date Tier 1: Age 60 and 8 years of Credited Service. Tier 2: Age 50 with 10 years of Credited Service. Benefit Tier 1: Normal Retirement benefit with no minimum. Tier 2: Normal Retirement benefit reduced 6.00% each year before age 55, with no minimum benefit. Form of Benefit Same as Normal Retirement. Disability Benefit Eligibility Total and permanent as determined by the Board of Trustees. Benefit Amount A maximum of: a.) 65% of salary attached to the rank held by Member on last day of service, and; b.) The monthly retirement pension that the Member is entitled to receive if he or she retired immediately. For non-service connected disabilities, a benefit of 50% of salary attached to rank held by Member on last day of service. Cost-of-Living Adjustment Tier 1: Retirees: An annual increase equal to 3.00% per year after age 55. Those that retire prior to age 55 receive an increase of 1/12 of 3.00% for each full month since benefit commencement upon reaching age 55. Disabled Retirees: An annual increase equal to 3.00% per year of the original benefit amount beginning at age 60. Those that become disabled prior to age 60 receive an increase of 3.00% of the original benefit amount for each year since benefit commencement upon reaching age 60. 30 Page 31 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation Tier 2: An annual increase each January 1 equal to 3.00% per year or one-half of the annual unadjusted percentage increase in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the original pension after the attainment of age 60 or first anniversary of pension start date whichever is later. Pre-Retirement Death Benefit Service Incurred 100% of salary attached to rank held by Member on last day of service. Non-Service Incurred A maximum of: a.) 54% of salary attached to the rank held by Member on last day of service, and; b.) The monthly retirement pension earned by the deceased Member at the time of death, regardless of whether death occurs before or after age 50. For non-service deaths with less than 10 years of service, a refund of member contributions is provided. Vesting (Termination) Vesting Service Requirement Tier 1: 8 years. Tier 2: 10 years. Non-Vested Benefit Refund of Member Contributions. Vested Benefit Either the termination benefit, payable upon reaching age 60 (55 for Tier 2), provided contributions are not withdrawn, or a refund of member contributions. The termination benefit is 2.50% of annual salary held in the year prior to termination (4-year final average salary for Tier 2) times creditable service. Contributions Employee 9.91% of Salary. Municipality Remaining amount necessary for payment of Normal (current year’s) Cost and amortization of the accrued past service liability. 31 Page 32 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation SUPPLEMENTARY INFORMATION GLOSSARY Accrued Benefit The benefit earned as of a specific date based on the provisions of the plan and the member’s age, service, and salary as of that date. Actuarial Accrued Liability The portion of the anticipated future benefits allocated to years prior to the valuation date determined according to the plan’s Actuarial Cost Method. Actuarial Value of Assets The asset value used in the valuation to determine contribution requirements. It represents the plan’s Market Value of Assets (see below), with adjustments according to the plan’s Actuarial Asset Method. These adjustments produce a “smoothed” value that is likely to be less volatile from year to year than the Market Value of Assets. Actuarial Assumptions Assumptions regarding the occurrence of future events affecting plan costs. These assumptions include rates of investment earnings, changes in compensation, rates of mortality, withdrawal, disablement, and retirement as well as statistics related to marriage and family composition. Actuarial Cost Method A method of determining the portion of the cost of a plan to be allocated to each year; sometimes referred to as the "actuarial funding method." Each cost method allocates a certain portion of the actuarial present value of benefits between the Actuarial Accrued Liability and future normal costs to ensure the plan is adequately and systematically funded. Actuarial Gain or Loss The change in Unfunded Actuarial Accrued Liability resulting from experience different from Actuarial Assumptions. Gains decrease the Unfunded Actuarial Accrued Liability and losses increase the Unfunded Actuarial Accrued Liability. Actuarial Present Value The estimated amount of funds required as of a specified date to provide a payment or series of payments in the future. It is 32 Page 33 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation determined by discounting future payments at predetermined rates of interest, and by probabilities of payments between the specified date and the expected date of payment. Amortization Payment The portion of the plan contribution designated to pay interest and reduce the outstanding principal balance of Unfunded Actuarial Accrued Liability. If the amortization payment is less than the accrued interest on the Unfunded Actuarial Accrued Liability the outstanding principal balance will increase. Decrements Events which result in the termination of membership in the system such as retirement, disability, withdrawal, or death. Funded Ratio A measure of the ratio of the plan assets to liabilities of the system. Typically, the assets used in the measure are the Actuarial Value of Assets as determined by the asset valuation method. The Funded Ratio depends not only on the financial strength of the plan but also on the asset valuation method used to determine the assets and on the Actuarial Cost Method used to determine the liabilities. Interest Rate The assumed long-term rate of return on plan assets. Market Value of Assets The fair market value of plan assets as of the valuation date. Normal Cost The portion of the Actuarial Present Value of Benefits allocated to the current year determined according to the plan’s Actuarial Cost Method. Present Value of Benefits The single sum value on the valuation date of all future benefits to be paid to current plan participants. Projected Annual Payroll The salary expected for the year after the valuation date, excluding members over the 100% assumed retirement age. Projected Benefits The benefits expected to be paid in the future based on the provisions of the plan and the Actuarial Assumptions. The projected values are based on anticipated future advancement in age and accrual of service as well as increases in salary paid to the participant. 33 Page 34 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation Total Annual Payroll The salary expected for the year after the valuation date. Ultimate Cost The total cost to the plan once the last benefit has been paid. The Ultimate Cost equals Benefit Payments Plus: Expenses Less: Investment Income The Ultimate Cost is independent of the Actuarial Cost Method selected. Unfunded Actuarial Accrued Liability The excess of the Actuarial Accrued Liability over the Actuarial Value of Assets. Vested Benefit Benefits members are entitled to regardless of employment status. 34 Page 35 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation DISCUSSION OF RISK ASOP No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obliga ons and Determining Pension Plan Contribu ons, states that the actuary should iden fy risks that, in the actuary's professional judgment, may reasonably be an cipated to significantly affect the plan's future financial condition. Throughout this report, actuarial results are determined using various actuarial assump ons. These results are based on the premise that all future plan experience will align with the plan's actuarial assump ons; however, there is no guarantee that actual plan experience will align with the plan's assump ons. It is possible that actual plan experience will differ from an cipated experience in an unfavorable manner that will nega vely impact the plan's funded position. Below are examples of ways in which plan experience can deviate from assump ons and the poten al impact of that devia on. Typically, this results in an actuarial gain or loss represen ng the current-year financial impact on the plan's unfunded liability of the experience differing from assump ons; this gain or loss is amor zed over a period of me determined by the plan's amor za on method. When assump ons are selected that adequately reflect plan experience, gains and losses typically offset one another in the long term, resul ng in a rela vely low impact on the plan's contribu on requirements associated with plan experience. When assump ons are too op mis c, losses can accumulate over me and the plan's amor za on payment could potentially grow to an unmanageable level. Investment Return: When the rate of return on the Actuarial Value of Assets falls short of the assumption, this produces a loss represen ng assumed investment earnings that were not realized. Further, it is unlikely that the plan will experience a scenario that matches the assumed return in each year as capital markets can be volatile from year to year. Therefore, contribution amounts can vary in the future. Salary Increases: When a plan par cipant experiences a salary increase that was greater than assumed, this produces a loss represen ng the cost of an increase in an cipated plan benefits for the par cipant as compared to the previous year. The total gain or loss associated with salary increases for the plan is the sum of salary gains and losses for all active participants. Payroll Growth: The plan's payroll growth assump on, if one is used, causes a predictable annual increase in the plan's amor za on payment in order to produce an amor za on payment that remains constant as a percentage of payroll if all assump ons are realized. If payroll increases less than the plan's payroll growth assump on, the plan's amor za on payment can increase significantly as a percentage of payroll even if all assumptions other than the payroll growth assumption are realized. Demographic Assump ons: Actuarial results take into account various poten al events that could happen to a plan par cipant, such as re rement, termina on, disability, and death. Each of these poten al events is assigned a liability based on the likelihood of the event and the financial consequence of the event for the plan. Accordingly, actuarial liabili es reflect a blend of financial consequences associated with various possible outcomes (such as re rement at one of various possible ages). Once the outcome is known (e.g., the participant retires) the liability is adjusted to reflect the known outcome. This adjustment produces a gain or loss depending on whether the outcome was more or less favorable than other outcomes that could have occurred. 35 Page 36 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation IMPACT OF PLAN MATURITY ON RISK For newer pension plans, most of the par cipants and associated liabili es are related to ac ve members who have not yet reached re rement age. As pension plans con nue in opera on and ac ve members reach re rement ages, liabili es begin to shi from being primarily related to ac ve members to being shared amongst ac ve and re red members. Plan maturity is a measure of the extent to which this shi has occurred. It is important to understand that plan maturity can have an impact on risk tolerance and the overall risk characteristics of the plan. For example, closed plans with a large amount of retired liability do not have as long of a me horizon to recover from losses (such as losses on investments due to lower than expected investment returns) as plans where the majority of the liability is a ributable to ac ve members. For this reason, less tolerance for investment risk may be warranted for highly mature closed plans with a substan al inac ve liability. Similarly, mature closed plans paying substan al re rement benefits resul ng in a small posi ve or net nega ve cash flow can be more sensi ve to near term investment vola lity, par cularly if the size of the fund is shrinking, which can result in less assets being available for investment in the market. To assist with determining the maturity of the plan, we have provided some relevant metrics in the table following tled "Plan Maturity Measures and Other Risk Metrics". Highlights of this informa on are discussed below: The Support Ra o, determined as the ra o of ac ve to inac ve members, has decreased from 113.2% on January 1, 2022 to 109.8% on January 1, 2025, indica ng that the plan has been maturing during the period. The Accrued Liability Ra o, determined as the ra o of the Inac ve Accrued Liability, which is the liability associated with members who are no longer employed but are due a benefit from the plan, to the Total Accrued Liability, is 64.3%. With a plan of this maturity, losses due to lower than expected investment returns or demographic factors may result in larger increases in contribu on requirements than would be needed for a less mature plan. The Funded Ra o, determined as the ra o of the Actuarial Value of Assets to the Total Accrued Liability, has decreased from 67.5% on January 1, 2022 to 61.6% on January 1, 2025. The Net Cash Flow Ra o, determined as the ra o of the Net Cash Flow (contribu ons minus benefit payments and administra ve expenses) to the Market Value of Assets, stayed approximately the same from January 1, 2022 to January 1, 2025. The current Net Cash Flow Ra o of -1.0% indicates contributions are generally covering the plan's benefit payments and administrative expenses. It is important to note that the actuary has iden fied the risks in this sec on as the most significant risks based on the characteris cs of the plan and the nature of the project, however, it is not an exhaus ve list of poten al risks that could be considered. Addi onal advanced modeling, as well as the iden fica on of additional risks, can be provided at the request of the audience addressed on page 2 of this report. 36 Page 37 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation LOW DEFAULT RISK OBLIGATION MEASURE ASOP No. 4, Measuring Pension Obliga ons and Determining Pension Plan Costs or Contribu ons, was revised as of December 2021 to include a "low-default-risk obliga on measure" (LDROM). This liability measure is consistent with the determina on of the actuarial accrued liability shown in the principal valua on results in terms of member data, plan provisions, and assump ons/methods, including the use of the Entry Age Normal Cost Method, except that the interest rate is ed to low-default-risk fixed income securi es. The S&P Municipal Bond 20 Year High Grade Rate Index (daily rate closest to, but not later than, the measurement date) was selected to represent a current market rate of low risk but longer-term investments that could be included in a low-risk asset por olio. The interest rate used in this valua on was 4.28%, resul ng in an LDROM of $94,925,702. The LDROM should not be considered the "correct" liability measurement; it simply shows a possible outcome if the Board elected to hold a very low risk asset por olio. The Board actually invests the pension plan's contribu ons in a diversified por olio of stocks and bonds and other investments with the objec ve of maximizing investment returns at a reasonable level of risk. Consequently, the difference between the plan's Actuarial Accrued Liability disclosed earlier in this sec on and the LDROM can be thought of as represen ng the expected taxpayer savings from inves ng in the plan's diversified por olio compared to investing only in high quality bonds. The actuarial valua on reports the funded status and develops contribu ons based on the expected return of the plan's investment por olio. If instead, the plan switched to inves ng exclusively in high quality bonds, the LDROM illustrates that reported funded status would be lower (which also implies that the Actuarially Determined Contribu ons would be higher), perhaps significantly. Unnecessarily high contribu on requirements in the near term may not be affordable and could imperil plan sustainability and benefit security. 37 Page 38 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation PLAN MATURITY MEASURES AND OTHER RISK METRICS 1/1/2025 1/1/2024 1/1/2023 1/1/2022 S UPPORT RATIO Total Actives 45 43 41 43 Total Inactives ¹ 41 42 39 38 Actives / Inactives ¹ 109.8% 102.4% 105.1% 113.2% ASSET VOLATILITY RATIO Market Value of Assets (MVA) 41,484,269 38,269,224 33,989,666 38,947,824 Total Annual Payroll 5,316,683 4,824,524 4,189,515 4,356,768 MVA / Total Annual Payroll 780.3% 793.2% 811.3% 894.0% ACCRUED LIABILITY (AL) RATIO Inactive Accrued Liability 43,916,268 43,953,512 38,955,011 36,647,141 Total Accrued Liability (EAN) 68,296,635 65,535,478 59,122,599 57,715,891 Inactive AL / Total AL 64.3% 67.1% 65.9% 63.5% FUNDED RATIO Actuarial Value of Assets (AVA) 42,052,296 40,755,672 39,818,405 38,947,824 Total Accrued Liability (EAN) 68,296,635 65,535,478 59,122,599 57,715,891 AVA / Total Accrued Liability (EAN) 61.6% 62.2% 67.3% 67.5% NET C ASH FLOW RATIO Net Cash Flow ² (424,516) (277,147) (197,426) (599,177) Market Value of Assets (MVA) 41,484,269 38,269,224 33,989,666 38,947,824 Ratio (1.0)% (0.7)% (0.6)% (1.5)% ¹ Excludes terminated participants awaiting a refund of member contributions. ² Determined as total contributions minus benefit payments and administrative expenses. 38 Page 39 of 59 Village of Glen Ellyn Police Pension Fund Actuarial Valuation STATUTORY MINIMUM REQUIRED CONTRIBUTION Contribu on requirements shown on this page are calculated according to statutory minimum funding requirements of the Illinois Pension Code. We do not believe this method is sufficient to fund future benefits; as such, we recommend funding according to the contribu ons developed in the Contribu on Requirements section of this report. Valuation Date 1/1/2025 1/1/2024 Applicable to Fiscal Year Ending 12/31/2026 12/31/2025 UNFUNDED ACTUARIAL ACCRUED LIABILITY Actuarial Accrued Liability (PUC) $ 65,194,868 $ 62,560,869 Actuarial Value of Assets 42,052,296 40,755,672 Unfunded Actuarial Accrued Liability (UAAL) 23,142,572 21,805,197 UAAL Subject to Amortization 16,623,085 15,549,110 C ALCULATION OF MINIMUM REQUIRED C ONTRIBUTION¹ Normal Cost $ 1,487,500 $ 1,366,834 % of Total Annual Payroll 28.0% 28.3% Administrative Expenses 66,212 72,613 % of Total Annual Payroll 1.2% 1.5% UAAL Amortization Payment 1,381,863 1,233,924 % of Total Annual Payroll 26.0% 25.6% Total Required Contribution $ 2,935,575 $ 2,673,371 % of Total Annual Payroll 55.2% 55.4% Expected Member Contributions (526,883) (478,110) % of Total Annual Payroll (9.9)% (9.9)% Expected Village Contribution $ 2,408,692 $ 2,195,261 % of Total Annual Payroll 45.3% 45.5% ASSUMPTIONS AND METHODS Actuarial Cost Method Projected Unit Credit Amortization Method 90% Funding by 2040 Payroll Growth Assumption 3.25% All other assumptions and methods are as described in the Actuarial Assumptions and Methods section. ¹ Contributions developed as of 1/1/2025 displayed above have been adjusted to account for assumed interest. 39 Page 40 of 59  Glen Ellyn Finance Commission Meeting 6/27/2025 7:00 AM 535 Duane Street Department: Finance Glen Ellyn, IL 60137 Department Head: Category: Report Prepared By: AGENDA ITEM (ID # 2025-547) DOC ID: 2025-547 First Quarter Financial Report Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: 1. 2025 Q1 Financial Report 2. Village Links Financial Statements Q1 2025 Page 41 of 59 First Quarter 2025 Financial Report Page 42 of 59 ABOUT THIS REPORT • January 1, 2025 to March 31, 2025 • Preliminary and Unaudited • Budget basis (cash basis) Page 43 of 59 General Fund • Revenues are below prior year by $158,000, primarily due to strength of building permit revenue in 2023. • Revenues exceed FY25 YTD budget by $18,000 or 0.3%. • Expenditures are greater than prior year by $470,000, which is attributable to police and EMS. • Expenditures are below FY25 YTD budget by $463,000 or 7%. This is primarily traced to the Economic Development, EMS, and PW Streets division Page 44 of 59 General Fund Core Revenues as % of Budget Target Target Target 25.7% 25.7% 24.4% Page 45 of 59  YTD Core Revenues $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sales Tax Home Rule Sales Tax Income Tax Page 46 of 59 General Fund Expenditure Trends – From Budget • YTD expenditures are 8% above FY24 • YTD expenditures are 7% below FY25 budget - • Economic Development – this is primarily a timing issue with incentive payments. • EMS – timing issue with ambulance service fee invoices, plus new contract. • PW Streets & Forestry – limited snow & ice control, downtown beautification, open encumbrances Page 47 of 59  General Fund Cumulative Change in Fund Balance $3,000,000 $2,000,000 $1,000,000 $- $(1,000,000) $(2,000,000) $(3,000,000) 2025 Budget 2021 2022 2023 2024 2025 Page 48 of 59  F&B Tax - Monthly totals and 12 month rolling average, since inception $300,000 $250,000 Jan-25, $152,776 $200,000 Jan-21, $100,189 $150,000 $100,000 $50,000 $0 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Downward Trend Max, Min, Average, Current Monthly Total 12 mo rolling average Page 49 of 59  Capital Projects Fund - Real Estate Transfer Tax 70 $900,000 $800,000 60 $700,000 50 $600,000 Number Processed $ Cumulative RETT 40 $500,000 $400,000 30 $300,000 20 $200,000 10 $100,000 0 $- January February March April May June July August Sept Oct Nov Dec RETT transactions (# processed), 2023 RETT transactions (# processed), 2024 RETT transactions (# processed), 2025 RETT transactions ($ cumulative), 2023 RETT transactions ($ cumulative), 2024 RETT transactions ($ cumulative), 2025 Page 50 of 59 Other Funds Water and Sewer Fund - • Fee revenue is 20% of budget YTD; last year at this time fee revenue was at 20% of budget. Expenses performing exactly as expected, at 24.8% of budget. Parking Fund – • Fee revenue is trailing budget (as expected), Expenses are trailing budget at 20.6% (26.5% in prior year). Residential Solid Waste Fund – • Revenues trending at 25% of budget YTD, Expenses below budget at 22% Village Links - • See the Links Financial Statements Page 51 of 59 Cash Reserves Fund Available Cash Minimum Policy Above/(Below) Policy General $ 10,258,563 $ 8,003,411 $ 2,255,153 Water & Sewer $ 13,732,537 $ 2,707,597 $ 11,024,939 Parking $ 2,178,646 $ 103,744 $ 2,074,902 Solid Waste $ 523,604 $ 520,050 $ 3,554 Village Links $ 1,714,988 $ 1,859,419 $ (144,431) Page 52 of 59  Police Pension Fund • Illinois Police Officers’ Pension Investment Fund (IPOPIF) • State mandated pension consolidation; transition completed in April 2022 Inception IPOPIF YTD 1 Year to Date Fund investment performance, net of fees 0.45% 5.80% 4.52% Village long term target: 6.5% IPOPIF long term target: 6.8% Page 53 of 59  VILLAGE LINKS / RESERVE 22 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 22 As of March 31, 2025 2025 MONTH YEAR-TO-DATE ORG DESCRIPTION BUDGET 2025 2024 DIFF % DIFF 2025 2024 DIFF % DIFF REVENUES: 5500 Village Links Revenues $ 4,391,100 $ 129,060 $ 180,056 $ (50,996) -28% $ 179,241 $ 261,246 $ (82,005) -31% 5520 Reserve 22 Revenues 3,748,450 186,201 194,637 (8,436) -4% 409,562 400,779 8,784 2% Total Revenues $ 8,139,550 $ 315,261 $ 374,693 $ (59,432) -16% $ 588,803 $ 662,024 $ (73,221) -11% EXPENDITURES: 55700 Administration $ 802,432 $ 56,928 $ 49,100 $ 7,828 16% $ 216,319 $ 149,953 $ 66,366 44% 55710 Golf Course Maintenance 1,452,748 59,039 134,067 (75,028) -56% 197,733 232,900 (35,167) -15% 55720 Golf Services 1,111,406 53,228 64,412 (11,184) -17% 133,761 178,649 (44,888) -25% 55730 Reserve 22 3,358,636 194,324 209,143 (14,819) -7% 556,243 562,218 (5,976) -1% 55740 Stormwater Management 51,585 1,331 1,016 315 31% 3,982 1,952 2,030 104% 55750 Pro Shop Merchandise 175,053 25,708 20,527 5,181 25% 20,928 20,383 544 3% 55780 Motorized Carts 68,060 114 1,033 (920) -89% 114 1,033 (920) -89% 557X5 Mechanical Maintenance 417,756 33,644 31,720 1,924 6% 79,712 113,865 (34,153) -30% Total Operating Expenses $ 7,437,676 $ 424,314 $ 511,018 $ (86,703) -17% $ 1,208,791 $ 1,260,954 $ (52,164) -4% Operating Income (Loss) $ 701,874 $ (109,053) $ (136,325) $ 27,272 -20% $ (619,988) $ (598,930) $ (21,058) 4% Debt Service 303,100 - - - 0% - - - 0% Capital Expenditures 460,100 112,611 78,374 34,237 44% 186,839 182,393 4,446 2% CHANGE IN NET POSITION $ (61,326) $ (221,664) $ (214,699) $ (6,965) 3% $ (806,827) $ (781,323) $ (25,504) 3% KEY METRICS Goal Personnel Expenses as % of Sales 50% 69% 65% 3% 118% 103% 15% Cash Balance (End of Month, in $000's) $ 1,860 $ 1,909 $ 2,216 $ (307) 6/25/2025 Page 1 of 1 Page 54 of 59  VILLAGE LINKS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 22 GOLF (Including Administration, Grounds, & Mechanical Maintenance) As of March 31, 2025 ORG/ 2025 MONTH YEAR-TO-DATE OBJECT DESCRIPTION BUDGET 2025 2024 DIFF % DIFF 2025 2024 DIFF % DIFF 5500 VILLAGE LINKS REVENUES: 440550 Green Fees $ 2,800,000 $ 62,813 $ 96,587 $ (33,775) -35% $ 63,395 $ 116,985 $ (53,591) -46% 440554 Pro Shop - Sales 200,000 9,942 13,175 (3,232) -25% 12,942 15,920 (2,977) -19% 440555 Motor Carts 650,000 10,520 16,833 (6,314) -38% 10,520 20,826 (10,307) -49% 440556 Driving Range 500,000 20,902 25,387 (4,485) -18% 22,246 36,137 (13,891) -38% 440557 Resident Cards 35,000 9,050 8,705 345 4% 16,450 18,885 (2,435) -13% 460100 Investment Income 60,000 9,444 6,218 3,226 52% 23,559 18,863 4,697 25% 489000 Miscellaneous Revenue 146,100 6,375 13,109 (6,734) -51% 30,095 33,537 (3,441) -10% 489100 Miscellaneous - Over/Short - 14 41 (27) -67% 34 94 (60) -64% Total Revenues $ 4,391,100 $ 129,060 $ 180,056 $ (50,996) -28% $ 179,241 $ 261,246 $ (82,005) -31% COST OF GOODS SOLD: 520945 Cost of Goods Sold - Pro Shop $ 140,000 $ 23,736 $ 16,486 $ 7,250 44% $ 14,420 $ 11,398 $ 3,022 27% Total Cost of Goods Sold $ 140,000 $ 23,736 $ 16,486 $ 7,250 44% $ 14,420 $ 11,398 $ 3,022 27% Gross Profit $ 4,251,100 $ 105,324 $ 163,570 $ (58,246) -36% $ 164,821 $ 249,847 $ (85,027) -34% OTHER OPERATING EXPENSES: 510100 Salaries - Pensionable $ 1,314,522 $ 81,378 $ 97,285 $ (15,908) -16% $ 278,613 $ 263,543 $ 15,070 6% 510120 Salaries - Non-Pensionable 488,163 3,181 10,771 (7,590) -70% 3,560 12,584 (9,024) -72% 510200 Salaries - Overtime 23,500 160 - 160 0% 480 - 480 0% 510400 FICA Taxes 139,705 6,293 8,044 (1,752) -22% 21,135 20,571 564 3% 510500 IMRF 68,670 4,120 4,285 (165) -4% 14,123 11,570 2,553 22% 590600 Health Insurance 146,100 9,777 11,095 (1,319) -12% 31,922 33,286 (1,365) -4% 52XXXX Contractual Services 1,178,430 77,690 71,351 6,339 9% 251,445 222,888 28,557 13% 53XXXX Commodities 579,950 23,656 82,557 (58,901) -71% 36,851 122,896 (86,045) -70% Total Operating Expenses $ 3,939,040 $ 206,254 $ 285,389 $ (79,135) -28% $ 638,128 $ 687,338 $ (49,210) -7% Operating Income (Loss) $ 312,060 $ (100,930) $ (121,819) $ 20,889 -17% $ (473,307) $ (437,490) $ (35,817) 8% Operating Income (Loss) Percentage 7% -78% -68% -264% -167% KEY METRICS Goal Rounds Played 80,000 2,421 3,412 (991) 2,545 4,446 (1,901) Revenue Per Round $ 54.89 $ 53.31 $ 52.77 $ 0.54 $ 70.43 $ 58.76 $ 11.67 Resident Cards Sold N/A 860 867 (7) 1,628 1,933 (305) Cost of Goods Sold % - Pro Shop 70% 239% 125% 114% 111% 72% 40% Personnel Expenses as % of Sales 50% 81% 73% 8% 195% 131% 64% 6/25/2025 Page 1 of 2 Page 55 of 59  VILLAGE LINKS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 22 GOLF (Including Administration, Grounds, & Mechanical Maintenance) As of March 31, 2025 ORG/ 2025 MONTH YEAR-TO-DATE OBJECT DESCRIPTION BUDGET 2025 2024 DIFF % DIFF 2025 2024 DIFF % DIFF MISCELLANEOUS REVENUE Miscellaneous Revenue includes the following items that don't fit into any of the major revenue categories: Adult & Junior Golf Lessons $ 3,519 $ 8,367 $ (4,848) $ 22,245 $ 27,358 $ (5,113) Hand Cart Rentals 1,521 2,633 (1,112) 1,581 3,234 (1,653) Golf Club Rentals 80 110 (30) 80 140 (60) Locker Rentals 600 - 600 2,600 300 2,300 Illinois Sales Tax (1.75%) 140 166 (26) 627 622 6 Glen Ellyn Food & Beverage Tax (1%) 15 18 (3) 70 68 2 Tree Donation 500 - 500 1,000 - 1,000 Miscellaneous - 1,815 (1,815) 1,892 1,815 77 Total $ 146,100 $ 6,375 $ 13,109 $ (6,734) $ 30,095 $ 33,537 $ (3,441) 6/25/2025 Page 2 of 2 Page 56 of 59  RESERVE 22 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 22 As of March 31, 2025 ORG/ 2025 MONTH YEAR-TO-DATE OBJECT DESCRIPTION BUDGET 2025 2024 DIFF % DIFF 2025 2024 DIFF % DIFF 5520 RESERVE 22 REVENUES: 441100 Food $ 2,111,500 $ 117,974 $ 122,408 $ (4,434) -4% $ 264,932 $ 256,825 $ 8,107 3% 441101 Liquor 483,800 14,827 18,696 (3,868) -21% 34,228 38,512 (4,285) -11% 441102 Beer 557,100 19,379 22,472 (3,093) -14% 34,578 37,378 (2,800) -7% 441103 Wine 242,900 13,670 15,752 (2,081) -13% 35,256 33,989 1,267 4% 441104 NA Beverages 121,500 3,148 3,819 (671) -18% 6,446 7,614 (1,167) -15% 441106 Room Charges 3,800 1,250 1,276 (26) -2% 1,310 1,344 (34) -3% 441107 Service Charges 227,600 15,951 10,216 5,735 56% 32,365 25,185 7,179 29% 489000 Miscellaneous Revenue 250 1 - 1 0% 447 (68) 516 -755% Total Revenues $ 3,748,450 $ 186,201 $ 194,637 $ (8,436) -4% $ 409,562 $ 400,779 $ 8,784 2% 55730 COST OF GOODS SOLD: 530400 Cost of Goods Sold - Beer $ 144,850 $ 5,170 $ 10,213 $ (5,043) -49% $ 10,998 $ 12,789 $ (1,790) -14% 530401 Cost of Goods Sold - Wine 75,300 3,328 5,798 (2,470) -43% 10,105 15,288 (5,183) -34% 530402 Cost of Goods Sold - Liquor 101,600 4,010 7,514 (3,504) -47% 10,180 10,298 (118) -1% 530405 Cost of Goods Sold - NA Beverages 63,180 2,809 3,709 (900) -24% 3,765 7,738 (3,973) -51% 530420 Cost of Goods Sold - Food 675,680 38,362 45,062 (6,699) -15% 84,300 85,063 (763) -1% Total Cost of Goods Sold $ 1,060,610 $ 53,679 $ 72,296 $ (18,617) -26% $ 119,349 $ 131,176 $ (11,827) -9% Gross Profit $ 2,687,840 $ 132,522 $ 122,341 $ 10,181 8% $ 290,214 $ 269,603 $ 20,611 8% Gross Profit Percentage 72% 71% 63% 71% 67% 55730 OTHER OPERATING EXPENSES: 510100 Salaries - Pensionable $ 838,556 $ 63,209 $ 52,282 $ 10,927 21% $ 195,980 $ 173,178 $ 22,802 13% 510120 Salaries - Non-Pensionable 749,543 29,333 42,673 (13,341) -31% 91,848 112,612 (20,764) -18% 510200 Salaries - Overtime 7,500 147 450 (303) -67% 147 529 (382) -72% 510399 Tips Paid Through Payroll - (2,578) (5,124) 2,546 -50% 4,618 (1,551) 6,169 -398% 510400 FICA Taxes 153,178 8,185 8,827 (643) -7% 25,471 25,351 120 0% 510500 IMRF 43,689 3,736 2,861 875 31% 11,554 9,293 2,262 24% 590600 Health Insurance 85,500 7,162 6,498 664 10% 21,487 20,635 852 4% 52XXXX Contractual Services 227,560 17,396 12,837 4,559 36% 52,682 46,264 6,418 14% 53XXXX Commodities 192,500 14,055 15,543 (1,488) -10% 33,107 44,732 (11,625) -26% Total Operating Expenses $ 2,298,026 $ 140,645 $ 136,847 $ 3,798 3% $ 436,894 $ 431,042 $ 5,852 1% Operating Income (Loss) $ 389,814 $ (8,123) $ (14,506) $ 6,383 -44% $ (146,680) $ (161,440) $ 14,759 -9% Operating Income (Loss) Percentage 10% -4% -7% -36% -40% 6/25/2025 Page 1 of 2 Page 57 of 59  RESERVE 22 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 22 As of March 31, 2025 ORG/ 2025 MONTH YEAR-TO-DATE OBJECT DESCRIPTION BUDGET 2025 2024 DIFF % DIFF 2025 2024 DIFF % DIFF KEY METRICS Goal Revenue Source: Restaurant/Bar N/A $ 96,251 $ 131,372 $ (35,122) -27% $ 225,108 $ 254,677 $ (29,569) -12% Banquets N/A 83,055 53,634 29,421 55% 177,078 134,815 42,263 31% Other N/A 6,896 9,631 (2,735) -28% 7,377 11,286 (3,910) -35% Total $ 3,748,450 $ 186,201 $ 194,637 $ (8,436) -4% $ 409,562 $ 400,779 $ 8,784 2% Reserve 22 Revenues (Last 12 Months) $ 3,748,450 $ 3,601,177 $ 3,806,894 $ (205,717) -5% Reserve 22 Expenses (Last 12 Months) $ 3,358,636 $ 3,330,976 $ 3,418,971 $ (87,995) -3% # Guest Checks (Restaurant/Bar) N/A 2,208 2,621 (413) 4,855 5,461 (606) Revenue Per Guest Check N/A $ 43.59 $ 50.12 $ (6.53) $ 46.37 $ 46.64 $ (0.27) # Guests (Restaurant/Bar) N/A 3,434 4,446 (1,012) 7,550 8,966 (1,416) Average Guest Spend N/A $ 28.03 $ 29.55 $ (1.52) $ 29.82 $ 28.40 $ 1.41 Cost of Goods Sold % 28% 29% 37% -8% 29% 33% -4% Cost of Goods Sold % (By Category): Cost of Goods Sold - Beer 26% 27% 45% -19% 32% 34% -2% Cost of Goods Sold - Wine 31% 24% 37% -12% 29% 45% -16% Cost of Goods Sold - Liquor 21% 27% 40% -13% 30% 27% 3% Cost of Goods Sold - NA Beverages 52% 89% 97% -8% 58% 102% -43% Cost of Goods Sold - Food 32% 33% 37% -4% 32% 33% -1% Personnel Expenses as % of Revenues 50% 60% 58% 2% 85% 85% -1% Prime Cost (Cost of Goods Sold + Personnel Expenses) as % of Revenues 78% 89% 96% -7% 114% 118% -4% 6/25/2025 Page 2 of 2 Page 58 of 59  Village Links / Reserve 22 Dashboard Financial Reports As of March 31, 2025 Year-To-Date Net Income Year-to-Date Operating Income (Including Capital and Debt Expenditures) (Excluding Capital and Debt Expenditures) $2,000,000 $2,200,000 $1,800,000 $2,000,000 $1,600,000 $1,800,000 $1,400,000 $1,600,000 $1,200,000 $1,400,000 $1,000,000 $1,200,000 $800,000 $1,000,000 $600,000 $800,000 $600,000 $400,000 $400,000 $200,000 $200,000 $- $- $(200,000) 2021 $(200,000) $(400,000) 2022 $(400,000) $(600,000) 2023 $(600,000) $(800,000) 2024 $(800,000) $(1,000,000) 2025 2021 2022 2023 2024 2025 Reserve 22 Operating Income Reserve 22 Revenues (Excluding Capital and Debt Expenditures) 12-Month Rolling Revenues $600,000 $4,500,000 $4,300,000 $500,000 $4,100,000 $400,000 $3,900,000 $3,700,000 $300,000 $3,500,000 $3,300,000 $200,000 $3,100,000 $100,000 $2,900,000 $2,700,000 $- $2,500,000 $(100,000) $(200,000) 12-Month Rolling Revenue Budget 2021 2022 2023 2024 2025 Golf Operating Income Cash Reserves (Excluding Capital and Debt Expenditures) $4,000,000 $1,800,000 $3,500,000 $1,600,000 $3,000,000 $1,400,000 $1,200,000 $2,500,000 $1,000,000 $2,000,000 $800,000 $1,500,000 $600,000 $400,000 $1,000,000 $200,000 $500,000 $- $- $(200,000) $(400,000) $(600,000) 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 6/25/2025 Page 1 of 1 Page 59 of 59