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9. SHORT-TERM DEBT Liabilities for bond anticipation notes (“BANs”) are generally accounted for in the Capital Projects Fund. State law.requires that BANs issued for capital purposes be converte d to long- term obligations within five years after the original issue date, However, BANS issued for assessable improvement projects may be renewed for periods equivalent to the life of the permanent financing, provided that annual reductions of priacipal are-made. The following is a summary of the Village’s BAN liability as of May 31, 2025: Interest Balance at Balance at Description Rate June 1, 2024 Increases Decreases May 31, 2025 Water System 3.79% S 715,000 - 35,000 680,000 Fire Truck 3.79% 205,000 - 20,000 185,000 Point Peter Reservoir 3.79% 3,700,000 - 1,700,000 2,000,000 Waste Water Treatment Plan 3.79% : - 2,157,528 - 2,157,528 $4,620,000 2,157,528 1,755,000 5,022,528 10. LONG-TERM LIABILITIES Summary of Changes in Indebtedness — The following is a summary of changes in long-term debt for the year ended May 31, 2025. These amounts are not reported on the fund financial statements per fund accounting: Unaudited Unaudited Balance at Balance at 6/1/24 Additions Reductions 5/31/25 Serial bonds S$ 125,000 - 115,000 10,000 Capital lease 137,707 - 31,902 105,805 Compensated Absences * 61,391 2,286 - 63,677 Net pension liability (asset) * 725,878 38,363 - 764,241 Total , $ 1,049,976 40,649 146,902 943,723 * Additions/reductions to compensated absences and net pension liability are shown as the net change. Serial Bonds - The Village issues serial bonds to provide funds for the acquisition major pieces of equipment and for the construction of major capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the government, These bonds generally are issued as serial bonds with equal amounts of principal maturing each year with maturities that range from 10 to 30 years. The following is a summary of changes in bonded debt for the year ended May 31, 2025: 27