This report includes all funds of the Village. It includes all governmental organizations and activities for which the Village Board of Trustees is financially accountable. The Village provides the full range of municipal services normally associated with a municipality including general administration, police and fire protection, sanitation services, the construction and maintenance of highways, streets, and related infrastructure, recreational activities, cultural events, and economic development. In addition to general activities, the Village Board exercises authority over the Grafton Water and Wastewater Utility; therefore, these activities are included in the financial statements. The Grafton and Cedarburg School Districts are autonomous entities and have not met the established criteria for inclusion in the reporting entity and, accordingly, are excluded from this report. COMMUNITY PROFILE The Village is located in Ozaukee County, in the southeastern part of Wisconsin, approximately 20 miles north of downtown Milwaukee. The Village is 4.53 square miles in size and has a population of 11,549. The Village of Grafton was incorporated in 1896. The Village Board of Trustees, which consists of the Village President and six Trustees, is elected at large and on a non-partisan basis. Annual elections are held in April. The terms of office are 2 years but are overlapping so that the Village is provided with a continuity of knowledge in the Village business and legislative matters The Board is responsible for enacting ordinances, resolutions, and regulations governing the Village as well as the appointment of members of various statutory and advisory boards and the Village Administrator. As Chief Administrative Officer, the Village Administrator has the responsibility of administering programs in accordance with policies established by the Village Board and within the guidelines of the annual budget adopted by the Village Board. The annual budget serves as the foundation for the Village of Grafton’s financial planning and control. The development of the budget is completed as two separate projects: the development of the governmental activities program budget, and the development of the forecast (budget) for the Grafton Water and Wastewater Utility. All departments of the Village of Grafton are required to submit requests for appropriation for all governmental activities to the Village Administrator on or before the last Monday in August of each year. The Village Administrator uses these requests as the starting point for developing a proposed budget for the governmental activities. The Village Administrator presents the proposed budget for all governmental activities to the Village Board approximately in mid October for review. The Village Board meets with the Village Administrator and all department heads at a budget workshop shortly after receiving the proposed budget. The Village Board is required to hold a public hearing on the proposed budget, which is generally held the first Monday in November. The governmental activities budget is generally adopted at the second Village Board meeting in November at which time the required property tax levy is established. 2