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CAFR (Year Ended April 30, 1988) Comprehensive Annual Financial Report of the Village of Oak Brook, Illinois For the Year Ended April 30, 1988 `►PG�c OF oAk A,4 C y 4 O COU -T-4 �♦ -- E&W Ernst &Whinney VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended April 30, 1988 Page INTRODUCTORY SECTION Table of Contents 1 Organization Chart 5 Officers and Officials 6 Letter of Transmittal 7 GFOA Certificate of Achievement 15 FINANCIAL SECTION Accountants' Report. . . . . . . . . . . . . . . . . . . . . . . 16 Combined Statements--Overview ("Liftable" General Purpose Financial Statements): Combined Balance Sheet--All Fund Types and Account Groups . . . . . . . . . . . . . . . . . . . . 18 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--All Governmental _ Fund Types . . . . . . . . . . . . . . . . . . . . . . 20 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--Budget and Actual (Non-GAAP Basis) General Fund, �- Certain Special Revenue Funds and Debt Service Fund. . . . . . . . . . . . . . . . . . . . . 21 Combined Statement of Revenues, Expenses, and .... Changes in Retained Earnings/Fund Balances--All Proprietary Fund Types and Pension Trust Funds . . . . . . 22 Combined Statement of Changes in Financial Position--All Proprietary Fund Types and Pension Trust Funds. . . . . . . . . . . . . . . . . . . . 23 Notes to Financial Statements. . . . . . . . . . . . . . . . 24 -1- TABLE OF CONTENTS--Continued Page Combining, Individual Fund, and Account Group Financial Statements and Schedules: Governmental Funds: General Fund Statement of Revenues, Expenditures, and Changes _ in Fund Balance--Budget and Actual (Non-GAAP Basis) . . . . . . . . . . . . . . . . . . . 55 Schedule of Expenditures--Budget and Actual-- (Non-GAAP Basis) . . . . . . . . . . . . . . . . . . . 56 Special Revenue Fund Combining Balance Sheet. . . . . . . . . . . . . . . . . 60 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . 61 _ Capital Projects Funds Combining Balance Sheet. . . . . . . . . . . . . . . 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances . . . . . . . . . . . . . 63 Proprietary Funds Enterprise Funds _ Combining Balance Sheet. . . . . . . . . . . . . . . . . 64 Combining Statement of Revenues, Expenses, and Changes in Retained Larnings (Deficit) . . . . . . 65 Combining Statement of Changes in Financial Position . . . . . . . . . . . . . . . . . . . . . . . 66 Waterworks System Fund: Schedule of Revenues, Expenses, and Changes in Retained Earnings--Budget and Actual _ (Non-GAAP Basis) . . . . . . . . . . . . . . . . . 67 Schedule of Property, Plant, and Equipment and Accumulated Depreciation . . . . . . . . . . . . 69 -2- TABLE OF CONTENTS--Continued Page Combining, Individual Fund, and Account Group Financial Statements and Schedules--Continued: Proprietary Funds--Continued: Enterprise Funds--Continued: Sports Core Fund: Statement of Revenues, Expenses, and Changes in Deficit--Budget and Actual (Non-GAAP Basis) . . . . . . Schedule of Property, Plant, and Equipment and Accumulated Depreciation . . . . . . . . . . . . 74 Fiduciary Funds--Pension Trust Funds Combining Balance Sheet. . . . . . . . . . . . . . . . . . 75 Combining Statements of Revenues, Expenses, and Changes in Fund Balances . . . . . . . . . . . . . . 76 _ Combining Statement of Changes in Financial Position . . . 77 Policemen's Pension Fund: Schedule of Revenues, Expenses, and Changes in Fund Balance--Budget and Actual . . . . . . . . . . 78 Firefighter's Pension Fund: Schedule of Revenues, Expenses, and Changes in Fund Balance--Budget and Actual . . . . . . . . . . 79 ti General Fixed Assets Account Group Schedule of General Fixed Assets--By Sources . . . . . . . 80 Schedule of General Fixed Assets--By Function and Activity . . . . . . . . . . . . . . . . . . . . . . 81 Schedule of Changes in General Fixed Assets-- By Function and Activity . . . . . . . . . . . . . . . 82 -3- TABLE OF CONTENTS--Continued Table Page STATISTICAL SECTION (Unaudited) r General Governmental Expenditures by Function-- Last Ten Fiscal Years. . . . . . . . . . . . . . . . . 1 83 General Revenues by Source--Last Ten Fiscal Years. . . . 2 84 r Special Assessment Collections . . . . . . . . . . . . . 3 85 Property Tax Levies and Collections--Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . 4 86 Assessed and Estimated Actual Value of Taxable Property--Last Ten Fiscal Years. . . . . . . . . . . . 5 87 Property Tax Rates--All Overlapping Governments-- Last Ten Fiscal Years. . . . . . . . . . . . . . . . . 6 88 " Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita--Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . 7 89 Computation of Legal Debt Margin . . . . . . . . . . . . 8 90 Computation of Direct and Overlapping Debt . . . . . . . 9 91 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures--Last Nine Fiscal Years . . . . . . . . . 10 92 Revenue Bond Coverage--Waterworks System Bonds-- Last Ten Fiscal Years. . . . . . . . . . . . . . . . . 11 93 Demographic Statistics . . . . . . . . . . . . . . . . . 12 94 Property Value, Construction, and Bank Deposits-- Last Ten Calendar Years. . . . . . . . . . . . . . . . 13 95 r Principal Taxpayers. . . . . . . . . . . . . . . . . . . 14 96 Insurance in Effect. . . . . . . . . . . . . . . . . . . 15 97 Miscellaneous Statistical Data . . . . . . . . . . . . . 16 98 r r -4- I I f f VILLAGE of OAK BROOK, ILLINOIS ORGANIZATIONAL. CHART [ ELECTED OFFICIALS President i 6•Trustees I .-Cierr Trete aSurer� i Aovisory Boards&Commissions I Viliacie Manaaer i Pian Zoning Board Electrical Fire&Pouce Library Asst.to Village Legal Department Commission Of ADDea15 Commission Commission COmmRSiOn Manaaer " f " Staff Service Enaineenng I Administrative Services Finance i I I Water II Plan i(pv,ew& � JPSiC^ � I ADminiSt ration I CUStOma�, Payroll Account: insDec7O- + I �ervicE I insurance BiWne Pava Dle i UDeratino Departments it SDOrts CoreI PUDitC Works Fire Service Pouc Service Library Open Golf Pooi CIUD• Tennis MunClDal OpOaY Operation& Deration& kescue.Extinuisnment, Volunteer Bureau of Staff/Aux.Service ves igation Patrol,Traffic, Fiei05 Course House Garage Maintenance Drainage. Maintenance Emergency Medical Service InsDecUons Communication, Evidence. Juvenile Public Traffic Control&Lionting Water Service.Training Maint 8 Records.Supoiy& Detention intormation and Public Lanc System investiciation Maintenance Couq Liaison i f i VILLAGE OF OAK BROOK, ILLINOIS OFFICERS AND OFFICIALS Year Ended April 30, 1488 President Wence F. Cerne Clerk Marianne Lakosil Trustees Garry J. Bartecki Karen M. Bushy Walter C. Imrie Ronald P. Maher Joseph H. Rush H. Richard Winters Village Manager ._ Stephen Berley Village Treasurer Terry Klein -6- This letter describes the significant aspects of financial operations during the year. It is my hope that this report will significantly assist the Board of Trustees, Village officials and personnel, and our _ citizens in better understanding the financial activities and trans- actions relating to our Village government. Accounting System and Budgetary Control — The Village's accounting records for general governmental operations are accounted for on a modified accrual basis of accounting. Revenues are recorded when available and measurable. Expenditures are recorded when services or goods are received and liabilities are incurred. Accounting records for the Village's Enterprise Funds and Pension Trust — Funds are maintained on an accrual basis. The Village places a great deal of emphasis upon internal accounting controls as they affect the overall accounting system of the Village. — In developing and evaluating the Village's accounting system, considera- tion is given to the adequacy of internal accounting controls. Inter- nal accounting controls are designed to provide reasonable, but not — absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining — accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. -' All internal control evaluations occur within the above framework. We believe that the Village's internal accounting controls adequately _ safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained through a system of monthly revenue and expenditure/expense vs. budget accounting reports which are provided to all Trustees and department heads. All disbursements receive prior approval of the Board of Trustees. Expenditures in any fund are — restricted to the total appropriation budget, which is not changed without supplemental ordinance approval. Amounts budgeted by account within each fund can be changed by Board action. Budgetary control is maintained at the subfunction level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Open encumbrances at April 30, 1988 are reported as reservations of fund balance. The Reporting Entity and Its Services This report includes all of the funds and account groups of the Village. The Village provides a full range of services contemplated by statute or charter. This includes public safety (police, fire, bureau _.. of inspection, and emergency medical service), street maintenance, public improvements, planning and zoning, general administration services, water, and operation of a free public library and recreation facilities at the Oak Brook Sports Core, including an 18-hole golf course. -8- The Oak Brook Park District, the various school and sanitary districts, and the counties of Du Page and Cook are not included in the financial statements of this report as they are independent special districts and are not part of the Village of Oak Brook. During 1983, the National Council on Governmental Accounting ("NCGA") Statement No. 3 "Defining the Governmental Reporting Entity" became effective. This statement concluded that the basis--but not the only-- criterion for including a governmental department, agency, institution, commission, public authority, or other governmental organization in a governmental unit's reporting entity for general purpose financial reports is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The Village has reviewed NCGA Statement No. 3 and has determined that no change in the reporting entities included in its general purpose financial reports is required in order to comply with the provisions of the Statement. Economic Condition and Major Initiatives During August of 1987, the Village witnessed substantial flooding. Both residential and nonresidential areas including our municipal golf course sustained severe damage. The total damage eligible for both federal and state assistance was $105,403. A representative from the Federal Emergency Management Agency has approved the Village documenta- tion; therefore, we will receive $79,052 in federal funds and $13,175 in state funds. This money will be used to repair the damage done at the golf course and to rebuild bike pathways washed out by the flooding. _. The flood of 1987 also caused a great deal of damage for our neighbor- ing communities both to the north and south. As a result, all of the affected communities are looking for a flood control solution. As an example, once all the appropriate easements have been obtained, Salt Creek will be dredged in cooperation with the State of Illinois. Hope- fully, this will reduce the severity of flooding in the future. General Governmental Functions Operating revenues for general governmental functions as reported in the General Fund totaled $7,699,095, a decrease of $255,634 (3.2%) over last year. The amount of revenues from all sources and the increase or decrease over last year are shown in the following tabulation: Percent Increase of (Decrease) Source Amount Total Over 1987 Intergovernmental $6,454,682 83.8% $(153,631) Licenses and permits 295,364 3.8 15,671 Charges for services 204,889 2.7 (10,964) Fines and penalties 189,558 2.5 42,867 Interest on investments 368,659 4.8 3,786 Other revenues 185,943 2.4 (153,093) ..- $7.699.095 -9- Intergovernmental revenue is the major source of revenue for the Village, producing 83.8% of current year revenues. The decrease over last year is due to a one-time accelerated payment of $449,269 from the State of Illinois issued in March 1987. The intent of this distribu- tion was to ease cash flow problems of cities because of the loss of federal revenue sharing. The decrease in other revenues over last year is primarily due to the settlement of a class action suit against the State of Illinois charg- ing that the State held sales tax distributions too long and that the cities were entitled to the interest earned on the money during this delayed period. This money was received during fiscal year 1987. Revenues from investment income increased by $3,786 from last year, reflecting a slight increase in interest rates from the previous year. The Village has never levied taxes for general governmental functions. However, the assessed valuation of real property of the Village was $611,665,000, an increase of $165,889,000, or 37.2% over the prior year. Expenditures for general governmental purposes as reported in the general fund totaled $8,108,820, an increase of $925,476 (12.9%) from last year. Changes in levels of expenditures for major functions of the Village over the prior year are shown in the following tabulation: Percent Increase of (Decrease) Function Amount Total Over 1987 Legislative $ 311,918 3.9% $ 57,301 _ General government 895,764 11.0 (15,904) Public safety 4,616,312 56.9 165,932 Public works 2,089,485 25.8 704,584 Culture and recreation 195,341 2.4 13,563 8.108.820 100.0% 2 4 The increase in public works expenditures of $704,584, 50.9% over last year, is because of a very aggressive street resurfacing, street repair program. We will see the trend continue in fiscal year 1989. _ The Village also abated $300,000 of the 1986 Sports Core tax levy as a result of prior years ' accumulated surpluses in the General Fund. In 1983, the Village adopted the provisions of Statement No. 4 issued by the NCGA regarding recognition of liabilities for compensated absences. Accumulated unpaid vacation pay is accrued when incurred in the propriety funds. For governmental funds, the current portion of the liability is reported in the individual fund, and the remainder is reported in the General Long-term Debt Account Group. r -10- Debt Administration The ratio of net bonded debt to assessed valuation and the amount of the debt per capita are useful indicators of the Village's debt posi- tion. This information for the Village at April 30, 1988 as compared to April 30, 1987 is as follows: _ April 30 April 30 1988 1987 Net bonded debt total $5,139,611 $5,933,331 Ratio of net bonded debt to assessed valuation .840% 1.331% Net bonded debt per capita $ 642 $ 742 General obligation recreation bonds were issued for the purchase of the Sports Core in 1977. At that time, the Village also initiated a tax levy for purposes of retiring the principal and interest payments of .. the bonds. Collections in fiscal year 1987/88 totaled $598,279, or approximately 98% of the total tax levy. Because of the favorable fund balance in the General Fund, the Village abated the tax levy to be '— collected in fiscal 1987/88 by $300,000. Reduced tax levy rates as the result of the abatements are indicated below: Tax Fiscal Year Year _ 1987 1988 $.0949 per $100 of assessed valuation 1986 1987 $.1366 per $100 of assessed valuation 1985 1986 $.1566 per $100 of assessed valuation 1984 1985 $.1524 per $100 of assessed valuation 1983 1984 $.1704 per $100 of assessed valuation 1982 1983 $.1645 per $100 of assessed valuation 1981 1982 $.0944 per $100 of assessed valuation 1980 1981 $.2010 per $100 of assessed valuation 1979 1980 $.2265 per $100 of assessed valuation 1978 1979 $.3495 per $100 of assessed valuation 1977 1978 $.4535 per $100 of assessed valuation The general obligation bonds are due to be retired in December 1994. -- In addition, the Village has outstanding revenue bonds for the Water- works System Fund. Schedules of maturities of both bond issues are located in the notes to financial statements of the report. The Village's bonds have the following ratings: Moody's Investors Service •- General Obligation Bond Aa 1973 Water Works Revenue Bands A 1976 Water Works Revenue Bonds A -11- Cash Management It is the policy of the Village of Oak Brook to invest idle cash and increase investment income by the efficient use of savings accounts, certificates of deposit, repurchase agreements, and the Illinois Public Treasurer's Investment Pool. At April 30, 1988, the Village's invest- ments for all funds exclusive of the Pension Trust Funds were dis- tributed as follows: Treasurer's Investment Pool 2.8% _ Repurchase agreements 28.3 Certificates of deposit and other time deposits 68.9 For the year ended April 30, 1988, the Village received $1,689,854 in interest income. Capital Projects Funds The proceeds of the general obligation bond issue are accounted for in the Capital Project Funds until improvement projects are completed. At the end of the fiscal year, completed projects are transferred to the general account group or to the fixed assets of the Sports Core Enterprise Fund. Motor Fuel Tax Fund The Motor Fuel Tax Fund was established to account for the revenue received from the State of Illinois for the local share of the motor fuel tax collections. The State collects the tax on each gallon of fuel sold within the State of Illinois and returns a percentage back to each municipality based on population. Motor Fuel Tax revenue from the State for the fiscal year ended April 30, 1988 was $122,368. The funds in the Motor Fuel Tax Fund have been traditionally used by the Village to finance street reconstruction and resurfacing projects, and roadway deicer salt. Pensions Employees of the Village of Oak Brook are covered by one of three pen- sion plans. They are: (1) the Policemen's Pension Fund of the Village of Oak Brook, covering the Village's uniformed personnel in the Police Department; (2) the Firefighter's Pension Fund of the Village of Oak Brook, covering the Village's uniformed personnel in the Fire Depart- ment; and (3) the Illinois Municipal Retirement Fund, which covers all the remaining Village employees who work in excess of 1,000 hours per year on a regular basis. The employees covered by the Illinois Municipal Retirement Fund are also covered by Social Security. -12- General Fixed Assets The general fixed assets of the Village are those fixed assets used in the performance of general governmental functions and exclude the fixed ... assets of the Enterprise Funds. As of April 30, 1988, the general fixed assets of the Village amounted to $13,618,161. This amount represents the original cost of the assets and is considerably less _ than their present value. Depreciation of general fixed assets is properly not recognized in the Village's governmental fund types. Waterworks System Fund The Village's water utility continues to show increases in water sales, although also showing slight declines in net income, and debt service coverage as we continue the program of increasing rates about 5% annually. Comparative data for the past two fiscal years are presented in the following tabulation: 1988 1987 Water sales $2,053,375 $1,837,066 Water tap on charges 195,053 151,124 Total operating revenues 2,434,228 2,188,632 Total operating expenses 1,065,270 1,141,062 Amount available for debt service 1,933,297 1,668,605 Annual debt service 571,575 566,450 Coverage (amount available for debt service divided by annual debt service) 3.38 2.95 During the year, $400,000 of regularly maturing revenue bonds were retired in the Waterworks System Fund. Since fiscal year 1976/77, our debt coverage as defined above has increased from 2.07 to 3.38. Sports Core Fund The 1988 financial statements reflect the seventh year of operation of the 18-hole golf course and expanded operations of the Bath and Tennis Club. Operating revenues and interest income totaled $1,517,411. Operating expenditures, excluding depreciation, totaled $1,483,157. Major department activity is summarized as follows: Revenues and Interest Income Percent of Description Amount Total Golf course $ 763,295 50.3% Bath and Tennis Club (including special events) 681,629 44.9 Open fields 67,140 4.4 Interest income 5,347 .4 1.517.41 100.0% -13- Operating Expenses Percent of Description Amount Total Golf course $ 662,165 44.6% Bath and Tennis Club 616,505 41.6 Open fields 18,557 1.3 Administration 185,930 12.5 $1.483.157 100.070 Independent Audit Statutes require an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Village by independent certified public accountants selected by the Board of Trustees. This requirement has been complied with and the auditor's opinion has been included in this report. — Certificate of Achievement The Government Finance Officers Association of the United States and Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Oak Brook for its comprehensive annual financial report for the fiscal year ended April 30, 1987. ... In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the .� Village in a responsible and progressive manner. Terry C. Klein Finance Officer/Treasurer -14- Certificate of Achievement for Excellence - in Financial - Reporting Presented to Village of Oak Brook, - Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended April 30, 1987 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial — reports (CAFRs) achieve the highest standards in government accounting and financial reporting. MPresident Executive Director -15- EWErnst &Whinney 150 South Wacker Drive Chicago, Illinois 60606 312/368-1800 The President, Board of Trustees, and Village Manager Village of Oak Brook Oak Brook, Illinois 60521 We have audited the accompanying general purpose financial statements of the Village of Oak Brook, Illinois, and the combining, individual fund and account group financial statements of the Village as of and _ for the year ended April 30, 1988, as listed in the table of contents. These financial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village of Oak Brook, Illinois at April 30, 1988, and the results of its operations and the changes in financial position of its proprietary fund types and pension trust funds for the year then ended in conformity with generally accepted accounting principles. Also, in our opinion, the combining, individual fund and account group financial statements referred to above present fairly in all material respects the financial position of each of the individual funds and account groups of the Village of Oak Brook, Illinois at April 30, 1988, and the results of operations of such funds and changes in financial position of individual proprietary and pension trust funds for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund and account group financial statements. The accompany- ing statistical information listed in the table of contents is presented -16- a for purposes of additional analysis and is not a required part of the financial statements of the Village of Oak Brook, Illinois. Such infor- mation has not been subjected to the auditing procedures applied in our audit of the general purpose, combining, individual fund and individual account group financial statements and, accordingly, we express no opinion on it. Chicago, Illinois July 22, 1988 w w -17- VILLAGE OF OAK BROOK, ILLINOIS COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS April 30, 1988 Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS _.. Cash $ 66,641M $ 32 Investments 5,503,109►\ $246,909 639,190 $219,406 _ Receivables (net, where applicable, of allowances for uncollectibles): Sales taxes 1,333,258ti Property taxes 581,375 State income taxes 22,577 Water customers Allotments 10,426 Accrued interest 193,878-. Other 64,425 Due from other funds 532A 24 115,328 Inventory of supplies 42,930* Unamortized bond discount Other assets Restricted assets--investments — Fixed assets (net, where applicable, of accumulated depreciation) Amount available in Debt Service Fund Amount to be provided for retirement of general long-term debt TOTAL ASSETS AND OTHER DEBIT Z_ 1.220.621 JaaLZ34 See accompanying notes to financial statements. w r. Fiduciary Proprietary Fund Type Account Groups Totals Fund Type Pension General General Long- (Memorandum Only) Enterprise Trust Fixed Assets Term Debt 1988 1987 $ 26,264 $ 45,792 $ 138,729 $ 134,674 1,594,816 12,831,404 21,034,834 20,706,647 w 1,333,258 1,288,794 581,375 614,967 s 22,577 24,504 290,021 290,021 252,580 10,426 9,633 96,117 214,751 504,746 371,384 46,936 22,096 133,457 150,155 46,810 162,694 197,987 38,433 81,363 64,009 •- 35,098 3,753 3,753 3,753 5,504,524 5,504,524 4,025,584 w 16,518,418 $13,618,161 30,136,579 28,873,851 $ 510,389 510,389 416,672 5,223,998 5,223,998 6,011,859 $24.119.282 tl3,160,85a 113.618.161 t5.734,Bl t65,672,723 t63,182,151 w -18- VILLAGE OF OAK BROOK, ILLINOIS COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS--Continued April 30, 1988 — Governmental Fund Types Special Debt Capital General Revenue Service Projects LIABILITIES AND FUND EQUITY Accounts payable $ 452,06110, Accrued payroll and vacation 422,434% Customer deposits 4,500x-t Due to other funds 138,200` $ 532 Deferred revenue: Property tax receivables 43,102 : 574,600 Other *I Current interest payable 135,100 Construction performance bonds 553,743-< Revenue bonds payable, net of discount of $29,928 General obligation bonds payable TOTAL LIABILITIES 1,614,040 710,232 Fund equity: Contributed capital Investment in general fixed assets Retained earnings: Reserved under revenue bond ordinance Reserved for Lake Michigan Water Project i Unreserved Fund balances: Reserved for encumbrances 343,770 Reserved for inventory 42,930 Reserved for debt service 510,389 Reserved for employees' retirement Unreserved: Designated for subsequent year's expenditures $235,566 _ Undesignated 5,226,610 $257,335 99,168 TOTAL FUND EQUITY 5,613,310 257,335 510,389 334,734 TOTAL LIABILITIES AND FUND EQUITY 7.22 .350 tl,220,621 See accompanying notes to financial statements. -19- a� Fiduciary Proprietary Fund Type Account Groups Totals Fund Type Pension General General Long- (Memorandum Only) Enterprise Trust Fixed Assets Term Debt 1988 1987 $ 368,323 $ 17,416 $ 837,800 $ 560,955 31,244 $ 84,387 538,065 515,050 199,450 203,950 206,815 23,962 162,694 197,987 574,600 608,515 43,102 51,445 135,100 151,200 553,743 590,160 2,870,072 2,870,072 3,300,000 5,650,000 5,6501000 6,350,000 3,493,051 17,416 5,734,387 11,569,126 12,532,127 11,025,590 11,025,590 11,025,590 $13,618,161 13,618,161 12,396,448 3,744,082 3,744,082 3,690,082 - 362,502 5,856,559 5,856,559 4,403,457 343,770 313,821 42,930 43,339 510,389 416,672 12,454,600 12,454,600 10,190,749 235,566 140,898 688,837 6,271,950 7,666,466 -- 20,626,231 13,143,437 13,618,161 54,103,597 50,650,024 24.119.282 tl3,160,853 t13,618,161 t5,734,387 t65,672,723 $63.182.151 -19- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES--ALL GOVERNMENTAL FUND TYPES Year Ended April 30, 1988 Special General Revenue Fund Fund Revenues: Intergovernmental $6,454,682 $122,368 Property taxes - Licenses and permits 295,364 Service charges 204,889 Fines and penalties 189,558 Interest on investments 368,659 10,932 Miscellaneous 185,943 TOTAL REVENUES 7,699,095 133,300 Expenditures: Current: Legislative 311,918 General government 895,764 Public safety 4,616,312 Public works 2,089,485 Culture and recreation 195,341 Debt service: Principal retirement Interest and fees TOTAL EXPENDITURES 8,108,820 -- EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (409,725) 133,300 Other financing sources (uses): Operating transfers in 163,476 Operating transfers out (310,000) TOTAL OTHER FINANCING SOURCES (USES) (146,524) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (556,249) 133,300 Fund balances at May 1, 1987 6,169,559 124,035 FUND BALANCES AT APRIL 30, 1988 5.613.310 See accompanying notes to financial statements. -20- Debt Capital Totals Service Projects (Memorandum Only) Fund Funds 1988 1987 $118,150 $6,695,200 $6,885,727 627,708 627,708 598,342 295,364 279,693 204,889 215,853 189,558 146,691 35,093 $ 6,329 421,013 407,324 185,943 339,036 780,951 6,329 8,619,675 8,872,666 311,918 254,617 895,764 911,668 4,616,312 4,450,380 2,089,485 1,384,901 195,341 181,778 700,000 700,000 600,000 287,234 287,234 316,214 987,234 9,096,054 8,099,558 (206,283) 6,329 (476,379) 773,108 300,000 114,462 577,938 699,106 (310,000) (524,106) 300,000 114,462 267,938 175,000 93,717 120,791 (208,441) 948,108 416,672 213,943 6,924,209 5,971,841 510,389 t6,715,76a ",11L149 -20- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES--BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL FUND, CERTAIN SPECIAL REVENUE FUNDS AND DEBT SERVICE FUND Year Ended April 30, 1988 Special Revenue General Fund Motor Fuel Actual-- Variance Actual-- Budgetary Favorable Budgetary Basis Budget (Unfavorable) Basis Budget Revenues: Intergovernmental $6,454,682 $ 6,442,500 $ 12,182 $122,368 $130,000 Property taxes Licenses and permits 295,364 246,800 48,564 Service charges 204,889 243,670 (38,781) Fines and penalties 189,558 134,600 54,958 Interest on investments 368,659 300,000 68,659 10,932 6,500 Miscellaneous 185,943 145,800 40,143 TOTAL REVENUES 7,699,095 7,513,370 185,725 133,300 136,500 Expenditures: Current: Legislative 311,918 270,179 (41,739) General government 879,811 1,063,838 184,027 Public safety 4,570,971 4,903,723 332,752 Public works 2,260,990 2,663,421 402,431 Culture and recreation 188,719 211,862 23,143 Debt service: Principal retirement Interest and fees TOTAL EXPENDITURES 8,212,409 9,113,023 900,614 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (513,314) (1,599,653) 1,086,339 133,300 136,500 .� Other financing sources (uses): Operating transfers in 163,476 362,800 (199,324) Operating transfers out (310,000) (310,000) - (158,600) TOTAL OTHER FINANCING SOURCES (USES) (146,524) 521800 (199,324) (158,600) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (659,838) $(1.546.853) J"87 133,300 ) Fund balances at May 1, 1987 6,169,559 124,035 FUND BALANCES AT APRIL 30, 1988 i See accompanying notes to financial statements. -21- Fund Tax Fund Debt Service Fund Total (Memorandum Only) Variance Actual-- Variance Actual-- Variance Favorable Budgetary Favorable Budgetary Favorable (Unfavorable) Basis Budget (Unfavorable) Basis Budget (Unfavorable) $ (7,632) $118,150 $ 89,000 $ 29,150 $6,695,200 $ 6,661,500 $ 33,700 627,708 597,300 30,408 627,708 597,300 30,408 295,364 246,800 48,564 204,889 243,670 (38,781) 189,558 134,600 54,958 4,432 35,093 10,000 25,093 414,684 316,500 98,184 185,943 145,800 40,143 (3,200) 780,951 696,300 84,651 8,613,346 8,346,170 267,176 311,918 270,179 (41,739) - 1,000 1,000 879,811 1,064,838 185,027 4,570,971 4,903,723 332,752 2,260,990 2,663,421 402,431 188,719 211,862 23,143 700,000 700,000 - 700,000 700,000 - 287,234 302,400 15,166 287,234 302,400 15,166 987,234 1,003,400 16,166 9,199,643 10,116,423 916,780 (3,200) (206,283) (307,100) 100,817 (586,297) (1,770,253) 1,183,956 300,000 325,000 (25,000) 463,476 687,800 (224,324) 158,600 (310,000) (468,600) 158,600 158,600 300,000 325,000 (25,000) 153,476 219,200 (65,724) 93,717 $ 17.900 J-LJUZ (432,821) V1,551.053) $1:118,232 416,672 6,710,266 t510,389 t6.277,445 -21- VILLAGE OF OAK BROOK, ILLINOIS .r COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS/FUND BALANCES--ALL PROPRIETARY FUND TYPES AND SIMILAR TRUST FUNDS Year Ended April 30, 1988 Fiduciary Proprietary Fund Type Totals Fund Type Pension (Memorandum Only) Enterprise Trust 1988 1987 Operating revenues: Charges for services $3,911,280 $ 3,911,280 $ 3,751,332 Interest on investments $ 927,667 927,667 999,552 Contributions: Employees 208,019 208,019 206,546 Village 385,054 385,054 394,027 Miscellaneous 35,012 100 35,112 29,946 TOTAL OPERATING REVENUES 3,946,292 1,520,840 5,467,132 5,381,403 Operating expenses: _ Operation of facilities 2,087,500 2,087,500 2,188,614 General and administrative 206,557 3,355 209,912 181,417 Depreciation 493,336 493,336 460,422 Benefit payments 226,044 226,044 171,876 TOTAL OPERATING EXPENSES 2,787,393 229,399 3,016,792 3,002,329 OPERATING INCOME 1,158,899 1,291,441 2,450,340 2,379,074 Nonoperating revenues (expenses): Interest on investments 341,174 341,174 383,366 Interest on bonds (171,575) (171,575) (191,450) Amortization of bond discount (5,170) (5,170) (5,170) Fiscal agents' fees (4,539) (4,539) (3,384) Construction _ reimbursements 4,700 4,700 6,700 Other revenue (4,927) (4,927) 78,229 159,663 159,663 268,291 INCOME BEFORE OPERATING TRANSFERS 1,318,562 1,291,441 2,610,003 2,647,365 Operating transfers in 10,000 10,000 10,000 Operating transfers out (183,962) (183,962) (185,000) NET INCOME 1,144,600 1,291,441 2,436,041 2,472,365 Retained earnings/fund .r balances at May 1, 1987 8,456,041 11,851,996 20,308,037 17,835,672 RETAINED EARNINGS/ FUND BALANCES AT APRIL 30, 1988 $13,143,kE t22,744,M 120.308.037 See accompanying notes to financial statements. -22- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION--ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS Year Ended April 30, 1988 Fiduciary Proprietary Fund Type Totals Fund Type Pension (Memorandum Only) Enterprise Trust 1988 1987 Sources of working capital: Operations: Net income $1,144,600 $1,291,441 $2,436,041 $2,472,365 Items not requiring working capital: Depreciation 493,336 493,336 460,422 Amortization of bond discount 5,170 5,170 5,170 TOTAL PROVIDED BY OPERATIONS 1,643,106 1,291,441 2,934,547 2,937,957 TOTAL SOURCES OF WORKING CAPITAL 1,643,106 1,291,441 2,934,547 2,937,957 Uses of working capital: Acquisition of fixed assets 534,351 534,351 295,543 Reduction in bonds payable 400,000 400,000 375,000 Net increase in pension investments 1,282,542 1,282,542 1,376,109 TOTAL USES OF WORKING CAPITAL 934,351 1,282,542 2,216,893 2,046,652 NET INCREASE IN WORKING CAPITAL $ 708,755 $ 8.899 $ 717.654 $ 891,305 Elements of net increase (decrease) in working capital: Cash $ (70,984) $ 26,229 $ (44,755) $ 66,218 Investments 812,513 812,513 802,645 Receivables 77,085 3,734 80,819 74,733 Other assets (5,275) Inventory 17,763 17,763 3,564 Accounts payable (151,512) (2,053) (153,565) (26,665) Accrued payroll and vacation liability 6,324 6,324 (14,604) Customer deposits 2,865 2,865 10,068 Due to other funds 14,701 (19,011) (4,310) (19,379) NET INCREASE IN WORKING CAPITAL $ 708.755 $ 8.899 717.654 $ 891,305 See accompanying notes to financial statements. -23- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS Year Ended April 30, 1988 NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Oak Brook, Illinois ("Village") was incorporated February 21, 1958. The Village operates under a Board of Trustees- Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, recreation (golf course and Bath and Tennis Club), water, public improvements, planning and zoning, and general administrative services. The accompanying financial statements of the Village have been prepared in conformity with generally accepted accounting principles as promul- gated in pronouncements of the Governmental Accounting Standards Board ("GASB"). Reporting Entity: The financial statements of the Village, in Conformance with National Council on Governmental Accounting ("NCGA") Statement 3, as recognized by GASB Statement 1, include all funds and accounts groups of the Village and of agencies, boards and commissions over which the Village's Board of Trustees exercises oversight responsi- bility. Oversight responsibility was defined to include the following considerations: selection of governing authority, designation of man- agement, ability to significantly influence operations, accountability for fiscal matters, the scope of an organization's public service, and/or special financial relationships. Based on the foregoing criteria, the financial statements of the follow- ing organization are included in the accompanying financial statements: Oak Brook Public Library--The Library provides services to Village residents and the Village provides most of the Library's operating funds. The following organizations are not part of the Village and are excluded in the accompanying financial statements: Intergovernmental Risk Management Agency ("IRMA")--IRMA is a -- voluntary cooperative agency consisting of 44 Illinois municipal governmental units. Its purpose is to manage and fund first- party property losses and third-party liability claims of its member municipalities. The Village does not exercise any sig- nificant control over the activities of IRMA. The Village accounts for this joint venture using the cost method as the joint venture is financed by the General Fund. -24- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued s NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Intergovernmental Personnel Benefit Cooperative ("IPBC")--IPBC is a voluntary cooperative agency established by 21 Illinois municipal governmental units to administer some or all of the personnel benefit programs offered by its members. The Village does not exercise any significant control over the activities of IPBC. The Village accounts for this joint venture using the cost method as the joint venture is financied by the General Fund. Basis of Presentation--Fund Accounting: The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expendi- tures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial state- ments in this report, into six generic fund types and three broad fund categories as follows: Governmental Fund Types: Governmental Funds are those through which most governmental functions of the Village are financed. The Village's expendable financial resources (except those accounted for in proprietary funds) are accounted for through governmental funds. The meas- urement focus is upon determination of changes in financial posi- tion, rather than upon net income determination. The following are the Village's governmental fund types: General Fund--The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Fund--The Special Revenue Fund is used to account for the Village's share of the state motor fuel tax allotments, which are required by state law to be used to maintain streets. -25- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Debt Service Fund--The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general obligation long-term debt principal, interest and related costs. The Village's only Debt Service Fund is for the Sports Core general obligation recreation bonds. Capital Project Funds--Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital items (other than those financed by proprietary funds). Proprietary Fund Type: Proprietary Funds are used to account for the Village's ongoing activ- ities which are similar to those often found in the private sector. The measurement focus is upon determination of net income: Enterprise Funds--Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues _ earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Fiduciary Fund Type: Fiduciary Funds are used to account for assets held by the Village in a trustee capacity or as an agent for individuals, private organiza- tions, other governmental units, and/or other funds. Trust Funds--Trust Funds are used to account for assets held by the Village in a trustee capacity. These include the Policemen's and Firemen's Pension Trust Funds. These funds are accounted for in essentially the same manner as proprietary funds. -26- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Account Groups: Account groups are used to establish accounting control and accountability for the Village's general fixed assets and general long-term debt. The following are the Village's account groups: General Fixed Assets Account Group--This account group is established to account for all fixed assets of the Village, _. other than those accounted for in the proprietary funds and trust funds. General Long-Term Debt Account Group--This account group is established to account for all long-term debt of the Village except that accounted for in the proprietary funds. Basis of Accounting: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Shared revenues — remitted from the state government, such as the state motor fuel tax allotments, state income taxes, and state sales taxes are accrued applying the susceptible to accrual concept based upon the month they are collected by the state. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous indi- vidual programs are used as guidance. There are, however, essentially two types of these revenues. In one type, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditure recorded. In the other type, monies are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the suscep- tible to accrual criteria are met. -27- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued License and permit fees, charges for services (other than enterprise funds), and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. With the exception of interest on long-term debt, expenditures are generally recognized under the modified accrual accounting concept when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following fiscal year. All proprietary funds and pension trust funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Unbilled Waterworks System Fund utility service receivables are recorded at year-end by taking the cycle billings sent to customers _ after year-end and prorating the amount of days applicable to each fiscal year. Budgetary Accounting: The Village follows these procedures in estab- lishing the budgetary data reflected in the financial statements: 1. Prior to March 1, a proposed operating budget for the fiscal year commencing the following May 1 is prepared by the department heads, reviewed by the Village Manager and Village Treasurer, and submitted to the Board of Trustees _ for their review. The operating budget includes proposed expenditures for the General Fund, Special Revenue Fund, Debt Service Fund, Enterprise Funds and Pension Trust Funds. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to August 1, the appropriations ordinance (budget), which is 10% greater than the proposed operating budget, is legally enacted through passage of an ordinance. All appropriations lapse at year-end. -28- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued w NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued 4. Changes or amendments to the total budgeted expenditures of any fund must be approved by the Board of Trustees. No supplemental appropriations were necessary during the past fiscal year. 5. Expenditures may not legally exceed budgeted appropriations on a fund basis for each legally adopted annual fund. Formal budgetary integration is employed as a management control device during the year for all funds. Village budgets are prepared on a basis of accounting consistent with generally accepted accounting principles (GAAP), except that encumbrances are treated as budgeted expenditures in the year of purchase or commitment to purchase. No amounts are budgeted or appropriated for depreciation in the Water and Sports Core Funds, rather capital additions are budgeted. Budgetary comparisons presented in this report are on the budgetary basis. Adjustments necessary to convert the results of operations at the end of the year on the GAAP basis to the budget basis are as follows: Governmental Fund Types Special Debt General Revenue Service Excess of revenues and other financing sources over expenditures and other financing uses $(556,249) $133,300 $93,717 Decrease due to: Encumbrances: Expenditures in 1988 of amounts encumbered as of April 30, 1987 240,181 - - Encumbered at April 30, 1988, but recognized as expenditures for budget purpose (343,770) - - Excess of revenues and other financing sources over expenditures and other _ financing uses--budgetary basis 9(659,838) t13 -29- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Encumbrances: Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropria- tion, is employed as an extension of formal budgetary integration in all funds. Encumbrances outstanding in the governmental funds at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Total (Memorandum Only) Columns: Total columns represent an aggrega- tion of the fund type and account group financial statements. They are presented for information only and do not represent consolidated finan- cial information. Interfund eliminations have not been made in the aggregation of this data. Investments: Investments are stated at cost, which approximates mar- ket. Adjustments are made to cost, for any premium or discount, which is amortized over the maturity of the investment. Inventory: Inventory is valued at cost (first-in, first-out) which approximates market. Inventory in the General Fund consists of expend- able supplies held for consumption; inventory in the Sports Core Fund consists of similar expendable supplies and also inventory of the pro shop held for resale. The cost is recorded as an expenditure at the time individual inventory items are utilized. Reported General Fund inventories are equally offset by a fund balance reserve which indi- cates that they do not constitute "available spending resources" even though they are a component of net current assets. Fixed Assets and Long-Term Liabilities: Fixed assets acquired for use in governmental fund type operations are recorded as expenditures in the fund making the expenditure and are capitalized at cost in the General Fixed Assets Account Group. If actual cost cannot be deter- mined, estimated historical cost is used; donated fixed assets are valued at their estimated fair value on the date donated. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are capitalized with other general fixed assets. In accordance with generally accepted accounting principles, no depreciation is taken on the general fixed assets. -30- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Proprietary fund assets are stated at cost or, if donated, fair market value at the date of donation, in the fund in which they are utilized. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depre- ciation is reported on the proprietary funds' balance sheets. Depreci- ation has been provided over the estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings 40 years Waterworks system 10-40 years Improvements, other than buildings 10-20 years Tennis courts and pools 15-20 years Equipment 5-10 years Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group. Long- term liabilities of all proprietary funds are accounted for in the respective funds. _ Vacation pay is computed and earned on a calendar year basis. Vacation earned must be taken before the end of the next calendar year and is, therefore, taken on a first-in, first-out basis. For governmental funds, the current portion of accumulated unpaid vacation benefits is reported in the individual fund, and the remainder is recorded in the General Long-Term Debt Account Group. Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund types. NOTE B--PROPERTY TAXES The Village's property tax is levied each calendar year on all taxable real property located in the Village. The Village levies taxes only for the payment of principal and interest on general obligation long- term debt. Property taxes attach as an enforceable lien on property as of Janu- ary 1. Taxes are levied on March 1 and become due and payable in two installments on June 1 and September 1 during the following fiscal year. Taxes-are billed and collected by county officials. -31- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE B--PROPERTY TAXES--Continued NCGA Interpretation 3 "Revenue Recognition--Property Taxes," states that property taxes should be recognized as revenue in the levy year only when they are due and receivable in the current year or when they are collected or expected to be collected within 60 days after the end of the current year. In accordance with this Interpretation, the Village does not recognize property taxes as revenue in the levy year because the taxes are not due and receivable until the following fiscal year. NOTE C--CASH AND INVESTMENTS At year-end, the carrying amount of the Village's deposits was $16,003,954 and the bank balance was $16,206,237. The following table summarizes the Village's deposits at April 30, 1988: Carrying Bank Amount Balance Insured (FDIC OR FSLIC) $ 6,596,897 $ 6,627,751 Uninsured: Collateral held by Village's agent in Village's name 2,680,382 2,680,382 Collateral held by pledging bank's agent in Village's name 6,709,997 6,881,426 — Uncollateralized 16,678 16,678 $16.003.954 $16,206,237 Chapter 85, Section 902 of the Illinois Revised Statutes authorizes the Village to invest in obligations of the United States Treasury and United States agencies, direct obligations of any bank, commercial paper rated within the three highest classifications set by two stand- ard rating services, or money-market funds investing in obligations of the United States Treasury and United States agencies. The Village's investments are categorized in the following table to give an indication of the level of risk assumed by the Village at April 30, 1988. Category 1 includes investments that are insured or registered or for which securities are held by the Village or its agent in the Village's name. Category 2 includes the uninsured and unregis- tered investments for which the securities are held by the broker's or dealer's trust department or agent in the Village's name. Category 3 -32- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE C--CASH AND INVESTMENTS--Continued includes uninsured and unregistered investments for which the securi- ties are held by the broker or dealer, or by its trust department or agent but not in the Village's name. Category Carrying Market 1 2 3 Amount Value Repurchase agreements $3,431,190 $ $ 3,431,190 $ 3,431,190 U.S. Government securities 2,825,000 2,825,000 2,827,129 U.S. Agency securities 1,050,000 1,050,000 1,073,296 Mortgage-backed securities 2,392,038 2,392,038 3,062,582 Other $600,000 600,000 612,143 9.698.228 _ 10,298,228 11,006,340 Investment in state treasurer's investment pool 375,905 375,905 10.674.133 11.382.245 NOTE D--FIXED ASSETS Changes in general fixed assets for the year ended April 30, 1988, are presented below: Balance at Balance at April 30 April 30 1987 Additions Retirements 1988 Land $ 281,829 $ 281,829 Buildings and improvements 4,888,475 $ 900 4,889,375 Furniture and fixtures 263,667 7,952 271,619 Roadway improvements 4,177,789 954,090 5,131,879 Automotive equipment 1,158,766 148,284 $14,000 1,293,050 Other equipment 1,324,075 92,435 1,416,510 Library books 301,847 32,052 333,899 $12.396.448 k.235.713 113.618.161 -33- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE D--FIXED ASSETS--Continued Proprietary fund type property, plant, and equipment at April 30, 1988, _ consisted of the following: Waterworks Total System Sports Enterprise Fund Core Fund Fund Land and improvements $ 2,819 $ 9,795,458 $ 9,798,277 Buildings and improvements 817,481 817,481 Waterworks system structure and equipment 9,124,653 9,124,653 Improvements other than buildings 470,946 470,946 Tennis courts and pools 537,286 537,286 Equipment 106,523 171,071 277,594 9,233,995 11,792,242 21,026,237 Less allowances for depreciation 2,670,946 1,836,873 4,507,819 $6.563.049 1 9.955.369 t16.518.41E NOTE E--LONG-TERM DEBT General Long-Term Debt Account Group: The following is a summary of transactions in the general long-term debt account group for the year ended April 30, 1988: _ General Obligation Accrued Recreation Vacation Bonds Liability Total Balance at May 1, 1987 $6,350,000 $78,531 $6,428,531 Transfers to Debt Service Fund (700,000) (700,000) Increase in accrued vacation liability 5,856 5,856 Balance at April 30, 1988 t5,650,000 jak Uj $5,734,H817 -34- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE E--LONG-TERM DEBT--Continued A special election on June 21, 1977, authorized and approved the issu- ance of $10,270,000 General Obligation Recreation Bonds--Sports Core. Proceeds of these bonds were used to pay the cost of the acquisition of approximately 269 acres of the Butler International Sports Core and to improve and redevelop the existing Village golf course. The bonds were sold as of September 1, 1977 for a price of $10,270,408 plus accrued interest of $71,611.50. Principal on the bonds is due serially Decem- ber 1, 1979 through December 1, 1994. Interest is payable semiannually on June 1 and December 1, at rates from 4.3% to 4.9%. The Village levies taxes for retirement of the bonds which are accounted for by the Debt Service Fund. Waterworks Revenue Bonds: The following is a summary of transactions for the year ended April 30, 1988: Waterworks Revenue Bonds 1973 Series 1976 Series Total Balance at May 1, 1987 $1,925,000 $1,375,000 $3,300,000 Retirements (175,000) (225,000) (400,000) Balance at April 30, 1988 1.750.000 $1.150.000 $2.900.000 The Waterworks Revenue Bonds were issued to fund the acquisition and expansion of the Village's water system. The $3,300,000 Series 1973 bonds were sold as of February 1, 1973. Principal on the bonds is due serially May 1, 1976 through May 1, 1996. Semiannual interest is pay- able on May 1 and November 1 at rates from 4% to 6%. The $3,000,000 1976 Series bond is due serially May 1, 1978 through May 1, 1992. Interest is payable semiannually on May 1 and November 1 at rates of 4.4% to 5.75%. Both series are payable from water revenues and are _. accounted for in the Waterworks System Fund. -35- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE E--LONG-TERM DEBT--Continued Debt Service Requirement: The annual payments to amortize all long-term debt outstanding, includ- ing interest, as of April 30, 1988, are as follows: General Obligation Waterworks Year Ended Recreation Bonds Revenue Bonds April 30 Principal Interest Principal Interest Total 1989 $ 700,000 $ 270,200 $�425�OOQ $.15Q,4_ 4._.$ 1,545,650 1990 700,000 238,000 475,000 127,150 1,540,150 1991 800,000 205,800 500,000 101,138 1,606,938 1992 800,000 167,400 525,000 73,487 1,565,887 1993 850,000 129,000 225,000 44,400 1,248,400 1994 900,000 88,200 225,000 32,700 1,245,900 ''].995 900,000 44,100 250,000 21,000 1,215,100 `1996 - - 275,000 11,000 286,000 $5.650.000 $2,900.00 10.254.025 `- NOTE F--REVENUE BOND COVENANTS The ordinance authorizing the issuance of Waterworks Revenue Bonds Series 1973 and 1976 requires that the following separate accounts be _ maintained in the Waterworks System Fund. On the first business day of each month, all monies held in the Fund are to be transferred to the designated accounts as noted below: Accounts Amount Operation and Maintenance An amount sufficient to pay the Account reasonable expense of operation and maintenance for the next month. This account had a balance of $139,600 at April 30, 1988. Bond and Interest Account Amount equal to one-tenth and one-fifth of the next maturing principal and interest payments, respectively. This account had no balance at April 30,1988. -36- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE F--REVENUE BOND COVENANTS--Continued Accounts Amount Bond Reserve Account $4,500 each month• until all bonds of this fund have been paid or payment provided for. This account had a balance of $760_,�SQO at April 30, 1988. Depreciation, Improvement $8,250 each month (or a greater and Extension Account amount, as designated by the Board) until a maximum of $400,000 is on deposit in said account. This account has a balance of $400,000 at April 30, 1988. Surplus Revenue Account All surplus funds remaining after providing for all of the deposits listed above. This account had a balance of $2,583,582_ at April 30, 1988. Funds accumulated in the bond reserve account shall be used only for the payment of interest or principal whenever there exists a deficiency in the bond and interest account. However, whenever the balance in said account is equal to the maximum principal and interest require- ments of all outstanding bonds, the surplus may be transferred to the depreciation improvement and extension account or the surplus revenue account at the discretion of the President and Board of Trustees. Since the Village has met their maximum principal and interest require- ments of all outstanding bonds, the surplus was transferred to a sepa- rate Lake Michigan reserve as described below. -' Funds accumulated in all but the operation and maintenance account have been classified as restricted assets on the combined balance sheet at April 30, 1988. -37- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS Village employees are covered under three separate retirement plans. ,. Full-time Village police officers and firefighters are covered by separate pension trust funds established in accordance with state law. Other full-time employees are covered by the Illinois Municipal Retirement Fund (statewide public employees retirement system). _ Illinois Municipal Retirement Fund 1. Plan Description The Village contributes to the Illinois Municipal Retirement Fund ("IMRF"), an agent-multiple-employer public employee retirement system that acts as a common investment and administrative agent for 2,377 local governments and school districts in Illinois. The Village's total payroll for the year ended April 30, 1988 was $4,538,804. Of this amount, $1,538,494 in payroll earnings were reported to and covered by the IMRF system. All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. Pension benefits vest after eight years of service. Par- ticipating members who retire at or after age 60 with eight years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited service up to 15 " years, and 2% for each year thereafter. IMRF also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. Participating members are required to contribute 4.5% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the System, using the actuarial basis specified by statute. 2. Related Party Transactions There were no securities of the Village and related parties included in the System's assets. -38- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued 3. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a .� standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a -- result of employee service to date. The measure is intended to help users assess the funding status of IMRF on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected bene- fits and is independent of the funding method used to determine contributions to IMRF. The pension benefit obligation was computed as part of an actuarial valuation performed as of December 31, 1987. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 7% a year compounded annually, (b) projected salary increases of 3.75% a year compounded annually, attributable to inflation, (c) additional projected salary increases of 1% a year, attributable to seniority/merit, and (d) postretirement benefit increases of 3% annually. Total unfunded pension benefit obligation applicable to the Village's employees was $294,883 at December 31, 1987, determined as follows: Pension benefit obligation: Terminated employees not yet receiving benefits $ 97,115 Current employees: Accumulated employee contributions including allocated investment earnings 426,300 Employer-financed vested 809,537 Employer-financed nonvested 157,645 TOTAL PENSION BENEFIT OBLIGATION 1,490,597 Net assets available for benefits at cost (market value is $1,152,788) 1,195,714 UNFUNDED PENSION BENEFIT OBLIGATION -39- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued _ NOTE G--RETIREMENT COMMITMENTS--Continued The pension benefit obligation applicable to retirees and benefici- aries currently receiving benefits is not included in the above schedule due to the fact that this obligation was transferred from the Village to IMRF as a whole when the annuity became payable. Current-year changes in the actuarial assumptions, benefit provi- sions, and methodology are reflected in the December 31, 1987 pen- sion benefit obligation shown above. This amount has been calcu- lated by the IMRF Actuary using the measure described above. The dollar effect of these changes on the pension benefit obligation was not economically determinable on an individual employer basis _ by IMRF. Since the December 31, 1987 valuation was the first time this measure was used, comparison with a previous year's pension benefit obligation is not available. 4. Actuarially Determined Contribution Requirements and Contribution Made i The IMRF funding policy provides for actuarially determined monthly contributions at rates that, for individual employees, accumulate assets gradually over time so that sufficient assets will be avail- able to pay benefits when due. The rate for the Village's employee group as a whole has tended to remain level as a percentage of annual covered payroll. The contribution rate for normal cost is determined using the entry age normal actuarial funding method. -- IMRF used the level percentage of payroll method to amortize the unfunded liability over an open-ended 40-year period. The significant actuarial assumptions used to compute the actuari- ally determined contribution requirement are the same as those used to compute the pension benefit obligation as described in C above. The contributions by the Village to IMRF for 1987 of $88,637 were y charged to the Village's account and were based on a contribution rate that was calculated in accordance with actuarially determined requirements computed through an actuarial valuation performed as of December 31, 1985. The contribution consisted of (a) $40,233 normal cost (2.61% of 1988 covered payroll), (b) $37,613 amortiza- tion of the unfunded actuarial accrued liability (2.44% of 1988 covered payroll), and (c) $10,790 death and disability cost (.70% of 1988 covered payroll). The employer contributed $88,637 (5.76% of 1988 covered payroll); employees contributed $69,368 (4.5% of 1988 covered payroll). -40- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued Current-year changes in the actuarial assumptions, benefit provi- sions, and methodology, explained below, will be incorporated in the 1989 employer contribution rate. These changes are estimated to increase the 1989 rate by approximately 2.00% of payroll over the 1988 rate. Separate dollar effects of each change were not economically determinable on an individual employer basis by IMRF. 5. Other Information As of the December 31, 1987 actuarial valuation, available assets were sufficient to fund 80.21% of the pension benefit obligation. Unfunded pension benefit obligation at December 31, 1987 repre- sented 19.17% of the annual payroll for participating members covered by IMRF for fiscal 1988. Showing unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes. In .� addition, for the year ended 1988 the contributions to IMRF, all made in accordance with actuarially determined requirements, were 5.76% of annual covered payroll. 6. Changes Three areas of changes discussed below have been incorporated in the 1989 employer contribution rate and in the December 31, 1987 pension benefit obligation. The changes due to actuarial assump- tions will be phased into the employer contribution rate over a three-year period. The following changes in actuarial assumptions were based upon the 1984-86 experience study: (1) A single assumed retirement age for all employees has been replaced by rates which vary by age. (2) The 1983 Group Annuity Mortality Table has been adopted for use in mortality rate calculations for female employees and annuitants. (3) Disability rates have been decreased to reflect actual experi- ence. (4) Salary rate growth has been increased from 4.50% to 4.75%. (5) Termination rate assumptions have been modified to set up distinct rates for employees with five, six, or seven years of service. The following statutory benefit changes, resulting from the passage of Public Act 85-0941, will have been implemented in 1988: (1) The 3% annual increase to retired members has been extended to surviv- ing spouse annuitants and to members receiving total and permanent -41- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued disability payments. (2) The $1,000 death benefit payable to the survivor of a retired member has been increased to $3,000. Beginning January 1, the cost of this benefit will be amortized by inclusion in the retirement contribution rate and removed from the pooled death and disability contribution rate. (3) The early retirement pension dis- count has been reduced from 1/2% to 1/4% per month. In 1987, IMRF changed actuaries. The new firm calculates present values and employer contribution rates using state-of-the-art actuarial computation procedures. The impact of this change in methodology tended to increase employer contribution rates. Police and Firefighter's Pension Plans 1. Plan Descriptions Substantially all uniformed police personnel are covered by the Police Pension Plan which is a defined benefit single-employer 1► plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contributions are governed by Illinois State Statutes (Chapter 108 1/2, Article 3) and may be _ amended only by the Illinois legislature. The Village of Oak Brook accounts for the Plan as a pension trust fund. The Village's payroll for employees covered by the Plan for the year ended April 30, 1988 was $1,229,426 out of a total Village payroll of $4,538,804. At April 30, 1988 the Police Pension Plan membership consisted of: Retirees and Beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 7 Current employees 36 The Police Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 years of creditable service are entitled to receive an annual retirement benefit of one-half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased -42- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued by 2% of such salary for each additional year of service over 20 years, up to 30 years, and 1% of such salary for each additional year of service over 30 years, to a maximum of 75% of such salary. ~� Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a police officer who retires after Janu- ary 1, 1986 shall be increased annually, following the first anniversary date and be paid upon reaching the age of at least 55 years, by 3% of the originally granted pension for each full year that has elapsed since the pension began, and by an additional 3% of the originally granted pension in January of each year thereafter. Covered employees are required to contribute 9% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the Plan as actuarially determined by an enrolled '— actuary. By the year 2020 the Village's contribution must accumu- late to the point where the past service cost for the Police Pen- sion Plan is fully funded. Substantially all fire personnel are covered by the Firefighter's Pension Plan which is a defined benefit single-employer pension plan. Although this is a single-employer pension plan, the defined benefits as well as the employee and employer contribution levels are mandated by Illinois State Statutes (Chapter 108 1/2, Arti- cle 4) and may be amended only by the Illinois legislature. The Village of Oak Brook accounts for the Plan as a pension trust fund. The Village's payroll for employees covered by the Plan for the year ended April 30, 1988 was $1,179,992 out of a total Village payroll of $4,538,804. At April 30, 1988 the Firefighter's Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 7 Current employees 34 -43- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued The Firefighter's Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 years of creditable service are entitled to receive an annual retirement benefit of one-half of the salary attached to the rank held in the fire service at the date of retire- ment. The pension shall be increased by 1/12 of 2% of such monthly salary for each additional month of service over 20 years, up to 30 years of service, and 1/12 of 1% of such salary for each additional month of service over 30 years, to a maximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a firefighter who retires after January 1, 1986 shall be increased annually, following the first anniversary date and be paid upon reaching the age of at least 55 years, by 3% of the originally granted pension for each full year that has elapsed since the pension began, and by an additional 3% in each January thereafter. Covered employees are required to contribute 8 1/4% of their base salary to the Firefighter's Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the Plan as actuarially determined by an enrolled actuary. By the year 2020 the Village's contribution must accumulate to the point where the past service cost for the Firefighter's Pension Plan is fully funded. 2. Funding Status and Progress The amount shown below as the "pension benefit obligation" for the Police Pension Plan and the Firefighter's Pension Plan is a substi- tute disclosure measure (entry age normal) of the present value of -- pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. This substitute _ disclosure measure is intended to help users assess the funding status of the Plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and -44- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued make comparisons among other employers using the substitute dis- closure method. The substitute disclosure measure is independent of the funding method used to determine contributions to the Plans. Police Firefighter's Pension Pension Actuarial valuation date April 30, 1987 April 30, 1987 -- Significant actuarial assumptions: a) Rate of return or investment 7.0% 7.0% of present and future compounded compounded assets annually annually b) Projected salary increases-- 5.5% 5.5% attributable to inflation compounded compounded annually annually c) Additional projected salary (Note--separation information increases--attributable to for b) and c) not available) seniority/merit d) Postretirement benefit 3.0% 3.0% increases simple interest compounded annually annually Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,450,424 $1,068,972 Current employees: •.. Accumulated employees contributions including allocated investment earnings 4,908,962 4,627,388 Employer-financed vested (Note 1) (Note 1) Employer-financed nonvested (Note 1) (Note 1) TOTAL PENSION BENEFIT OBLIGATION 6,359,386 5,696,360 Net assets available for benefits, at lower of cost or market 5,726,809 6,095,213 UNFUNDED (ASSETS IN EXCESS OF) PENSION BENEFIT OBLIGATION 632.577 $ (398.853) Note 1--Separate information for current employees not available. -45- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued —. NOTE G--RETIREMENT COMMITMENTS--Continued 3. Actuarially Determined Contribution Requirements and Contribution Made The Plans' funding policies provide for actuarially determined _ periodic contributions at rates that, expressed as percentages of annual covered payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age — normal funding method. The Plans also use the level percentage of payroll method to amortize the unfunded liability over a 40-year period. The significant actuarially assumptions used to compute the actuarially determined contribution requirements are the same as those used to compute the pension benefit obligation as described above. Police Firefighter's Pension Pension Actuarial valuation date April 30, 1987 April 30, 1987 Actuarially determined contribution requirements--employer: As a dollar amount: Normal cost $167,445 $230,788 Amortization of unfunded actuarial accrued liability 49,735 - 217_ ���• _ As a percent of fiscpl 1988 covered payroll: Normal cost 13.62% 19.56% Amortization of unfunded actuarial accrued liability 4.05 - 17.67% Contribution made during fiscal 1988: As a dollar amount: Employer $196,043 $189,011 Employee 110,697 97,322 -- As a percent of fiscal 1988 covered payroll: Employer 15.95% 16.02% Employee 9.00 8.25 24.95% 24.27% -46- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued 4. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Police Firefighter's Year Pension Pension Net assets available for benefits: As a percent of the pension benefit obligation (PBO) (as of April 30, 1987 actuarial valuation) 1988 90 % 107 % Unfunded (assets in excess of) PBO: As a percent of annual covered payroll (expressing the +- unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes) 1988 51.5 (33.8) Employer contributions: As a percent of annual covered payroll: 1988 15.95 16.02 Required 1988 $217,180 $230,788 .. Made 1988 196,043 189,011 -47- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued Village of Oak Brook _ Police Pension Fund Required Supplementary Information Revenues by Source and Expenses by Type April 30, 1988 Revenues by source Fiscal Employee Employer Investment Other Year Contributions Contributions Income Contributions Total 1987 $110,689 $203,271 $510,982 $ - $824,942 1988 110,697 196,043 468,630 100 775,470 Expenses by type Fiscal Administrative Year Benefits Expenses Refunds Total 1987 $100,585 $1,211 Note 2 $101,796 1988 93,126 1,631 $19,592 114,349 Note 2--Separate information is not available for pension benefits and refunds for fiscal 1987. —' -48- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued Village of Oak Brook Firefighter's Pension Fund Required Supplementary Information Revenues by Source and Expenses by Type April 30, 1988 Revenues by source Fiscal Employee Employer Investment Year Contributions Contributions Income Total 1987 $95,857 $190,756 $488,570 $775,183 1988 97,322 189,011 459,037 745,370 Expenses by type Fiscal Administrative Year Benefits Expenses Refunds Total 1987 $ 71,291 $2,568 $ - $ 73,859 1988 113,326 1,724 - 115,050 Note--The required supplementary information is only available for the past two fiscal years. -49- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE H--INTERFUND BALANCES Individual fund interfund receivable and payable balances at April 30, 1988 are as follows: Amounts Payable From Debt Sports Amounts General Service Core Payable to Fund Fund Fund Total General Fund $532 $ 532 Sports Core Construction Fund $23,962 23,962 Debt Service $ 24 24 Equipment Replacement .. Fund 91,366 91,366 Policemen's Pension Fund 23,974 23,974 Firefighter's Pension Fund 22,836 22,836 NOTE I--FUND DEFICITS The Sports Core Fund had a deficit in fund equity at April 30, 1988. The deficit in this Fund of $1,180,510 is due primarily to depreciation expense. The deficit is expected to be eliminated in the course of future operations of the Sports Core. NOTE J--JOINT VENTURES Intergovernmental Risk Management Agency: Intergovernmental Risk Management Agency ("IRMA") is a voluntary coop- erative agency consisting of 44 Illinois municipal governmental units. Its purpose is to manage and fund first-party property losses and third-party liability claims (including workers' compensation) of its member municipalities. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they -50- ,VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE J--JOINT VENTURES--Continued were a member. The Village of Oak Brook joined IRMA on January 1, 1979, and, by contract, will participate in and be a member thereof until December 31, 1988. At April 30, 1988, management knows of no claim, asserted or unasserted, which if asserted and paid, would have a materially adverse effect on the financial position of the various funds of the Village. Each member municipality assumes the first $1,000 of each and every loss or claim. The next $249,000 of any such loss or claim is paid by .. the IRMA pool. Commercial insurance would then pay to a limit of $1,000,000 per occurrence on a liability claim (with certain sublimits) and up to a limit of $30,000,000 per occurrence (with certain sub- limits) on a first-party property loss (including workers' compensation ._ up to statutory requirements). In 1985, the IRMA pool was protected by $2,000,000 annual aggregate excess insurance which attached at $5,000,000, and a $250,000 per occurrence stop loss. In 1986, the IRMA pool was protected by $2,000,000 annual aggregate excess insurance which attached at $6,350,000, and a $250,000 per occurrence stop loss. IRMA did not purchase aggregate excess insurance coverage for 1987. Management consists of a Board of Directors comprised of one representa- tive from each member. In addition, there are two officers, a Risk Manager and a Treasurer. The Village of Oak Brook exercises no control over the activities of the Agency. The latest available financial statements of IRMA, dated December 31, 1987, show the following: Village of Oak Brook IRMA Share (3.44%) Total assets $24,649,560 $847,945 Total liabilities 24,649,560 847,945 Total revenue 7,210,713 248,049 Total expense 7,210,713 248,049 IRMA had no debt outstanding at December 31, 1987. -51- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE J--JOINT VENTURES--Continued Intergovernmental Personnel Benefit Cooperative: The Intergovernmental Personnel Benefit Cooperative ("IPBC") is a coop- erative entity established by 21 Illinois municipal government units to administer some or all of the personnel benefit programs offered by these members. IPBC acts solely as an administrative agency to receive, process and pay such claims as may come within the benefit program of each member. At April 30, 1988, management knows of no claim, asserted or unasserted, which if asserted and paid would have a materially adverse effect on the financial position of the various funds of the Village. The latest available financial statements of IPBC, dated June 30, 1987, show the following: Village of Oak Brook IPBC Share Total assets $3,499,079 Total liabilities 3,499,079 Members' contributions and interest income 6,083,361 $312,205 Claim payments and insurance premiums 6,041,478 283,852 The Village's share of IPBC's assets and liabilities is not known. IPBC had no debt outstanding at June 30, 1987. -52- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE K--SEGMENT INFORMATION FOR ENTERPRISE FUNDS The Village maintains two enterprise funds which provide water and golf and other recreation services to the community. Segment information for the year ended April 30, 1988, is as follows: Waterworks Sports System Fund Core Fund Operating revenues $ 2,434,228 $ 1,512,064 Depreciation 254,370 238,966 Operating income (loss) 1,368,958 (210,059) Operating transfers in - 10,000 Operating transfers out (160,000) (23,962) Nonoperating revenues 344,710 5,994 Nonoperating expenses 181,284 (9,757) Net income (loss) 1,532,384 (213,822) Property, plant and equipment: Additions 471,258 50,171 Deletions - - Net working capital 1,583,650 (110,289) Total assets 13,925,271 10,193,511 Bonds outstanding 2,900,000 - Total equity 10,781,151 9,845,080 .NOTE L--COMMITMENTS On September 1, 1986, the Village entered into a noncancelable water supply contract with the Du Page Water Commission ("Commission"), which expires on February 24, 2024. Under the contract, the Village has agreed to purchase, beginning in 1992, an amount of Lake Michigan water necessary to meet the potable water requirements of all of its then cur- rent customers served by the Village's waterworks system. On February 10, 1987, the Commission issued $200,000,000 of Water Revenue Bonds, with serial bonds maturing on May 1, 1994 through 2001, and term bonds maturing on May 1, 2007 and May 1, 2014. Interest rates are fixed at 6.84%. The Commission will allocate the cost to retire the Water Revenue Bonds to the participating villages based on their usage of Lake Michigan water. The village's share of this debt is not known at this time. The Village has no other material commitments or operating lease agreements. -53- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued i NOTE M--CONTINGENCIES The Village participates in the Illinois Motor Fuel Tax program. This program is subject to program compliance audits by the grantor or its representative. The audit of this program for or including the year then ended April 30, 1988 has not yet been conducted. Accordingly, the Village's compliance with applicable grant requirements will be estab- lished at some future date. The amount, if any, of expenditures which may be disallowed by the granting agency cannot be determined at this time, although the Village expects such amounts, if any, to be immaterial. There are several pending lawsuits in which the Village is involved. Management believes that the potential claims against the Village resulting from such litigation would not materially affect the finan- cial statements of the Village. r r -54- VILLAGE OF OAK BROOK, ILLINOIS s GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE--BUDGET AND ACTUAL (NON-GAAP BASIS) Year Ended April 30, 1988 Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) REVENUES Intergovernmental: Municipal sales tax $6,084,429 $ 6,092,000 $ (7,571) Illinois state income tax 198,707 198,000 707 York Township road and bridge tax 147,984 128,000 19,984 Foreign fire insurance tax 23,562 24,500 (938) 6,454,682 6,442,500 12,182 Licenses and permits 295,364 246,800 48,564 Service charges 204,889 243,670 (38,781) Fines and penalties 189,558 134,600 54,958 Interest on investments 368,659 300,000 68,659 Miscellaneous 185,943 145,800 40,143 1,244,413 12070,870 173,543 TOTAL REVENUES 7,699,095 7,513,370 185,725 EXPENDITURES Legislative 311,918 270,179 (41,739) General government 879,811 1,063,838 184,027 Public safety 4,570,971 4,903,723 332,752 Public works 2,260,990 2,663,421 402,431 Culture and recreation 188,719 211,862 23,143 TOTAL EXPENDITURES 8,212,409 9,113,023 900,614 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (513,314) (1,599,653) 1,086,339 OTHER FINANCING SOURCES (USES) Operating transfers in 163,476 362,800 (199,324) Operating transfers out (310,000) (310,000) - TOTAL OTHER FINANCING SOURCES (USES) (146,524) 52,800 (199,324) EXCESS (DEFICIENCY) OF -- REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (659,838) $(1.546.853) $ 887.015 Fund balance at May 1, 1987 6,169,559 FUND BALANCE AT APRIL 30, 1988 See accompanying notes to financial statements. -55- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES--BUDGET AND ACTUAL (NON-GAAP BASIS) Year Ended April 30, 1988 Actual-- Variance Budgetary Favorable _ Basis Budget (Unfavorable) LEGISLATIVE Board of Trustees: Personal services $ 7,906 $ 7,300 $ (606) Contractual services 252,105 240,490 (11,615) Fixed charges 6,660 2,592 (4,068) Commodities 15,950 2,320 (13,630) 282,621 252,702 (29,919) Plan Commission: Personal services 3,317 2,881 (436) Contractual services 2,862 200 (2,662) Fixed charges 437 370 (67) Commodities 373 45 (328) 6,989 3,496 (3,493) Board of Fire and Police: i Contractual services 8,551 9,390 839 Fixed charges 175 200 25 Commodities 360 50 (310) 9,086 9,640 554 Zoning Board of Appeals: Personal services 3,317 2,881 (436) Contractual services 2,945 1,045 (11900) Fixed charges 437 370 (67) Commodities 413 45 (368) Capital outlay 6,110 - (6,110) 13,222 4,341 (8,881) TOTAL LEGISLATIVE 311,918 270,179 (41,739) GENERAL GOVERNMENT Legal: Personal services 51,030 46,818 (4,212) Contractual services 4,995 6,649 1,654 Fixed charges 19,582 19,720 138 Commodities 2,206 2,500 294 Capital outlay 590 11000 410 78,403 76,687 (1,716) See accompaying notes to financial statements. -56- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) GENERAL GOVERNMENT--Continued: Village Manager's office: Personal services $ 171,039 $ 190,983 $ 19,944 Contractual services 10,657 9,138 (1,519) Fixed charges 38,398 44,204 5,806 Commodities 4,881 3,550 (1,331) Capital outlay 2,229 3,500 1,271 227,204 251,375 24,171 Finance and accounting: Personal services 159,652 166,700 7,048 Contractual services 46,577 47,735 1,158 Fixed charges 35,317 36,046 729 Commodities 5,479 5,600 121 Capital outlay 912 46,500 45,588 247,937 302,581 54,644 Engineering: Personal services 138,385 134,500 (3,885) Contractual services 14,905 36,875 21,970 Fixed charges 27,434 27,191 (243) Commodities 2,002 3,175 1,173 Capital outlay 2,069 2,300 231 '- 184,795 204,041 19,246 Village hall: Personal services 48,527 56,741 8,214 Contractual services 53,686 128,042 74,356 Fixed charges 15,824 19,541 3,717 _ Commodities 23,435 15,830 (7,605) Capital outlay - 9,000 9,000 141,472 229,154 87,682 TOTAL GENERAL GOVERNMENT 879,811 1,063,838 184,027 PUBLIC SAFETY Police service: Personal services 1,551,622 1,575,316 23,694 Contractual services 75,614 95,795 20,181 Fixed charges 466,979 479,738 12,759 _ Commodities 72,523 86,040 13,517 Capital outlay 141,999 135,629 (6,370) 2,308,737 2,372,518 63,781 See accompanying notes to financial statements. -57- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Actual-- Variance •. Budgetary Favorable Basis Budget (Unfavorable) PUBLIC SAFETY--Continued: Fire service: Personal services $1,213,053 $ 1,154,497 $ (58,556) Contractual services 37,435 55,553 18,118 Fixed charges 405,036 418,464 13,428 Commodities 37,909 46,120 8,211 Capital outlay 153,721 359,739 206,018 1,847,154 2,034,373 187,219 ... Emergency medical service: Personal services 109,785 148,709 38,924 Contractual services 5,939 11,210 5,271 _. Fixed charges 23,272 32,808 9,536 Commodities 11,316 7,875 (3,441) Capital outlay 1,849 7,000 5,151 152,161 207,602 55,441 Bureau of inspection: Personal services 165,135 182,113 16,978 Contractual services 25,194 28,773 3,579 Fixed charges 46,741 54,544 7,803 Commodities 6,187 5,400 (787) Capital outlay 19,662 18,400 (1,262) 262,919 289,230 26,311 TOTAL PUBLIC SAFETY 4,570,971 4,903,723 332,752 PUBLIC WORKS Administration: Personal services 72,545 67,739 (4,806) Contractual services 37,985 42,323 4,338 Fixed charges 111,099 118,316 7,217 Commodities 3,280 3,250 (30) Capital outlay 1,355 1,700 345 226,264 233,328 7,064 w Street maintenance: Personal services 207,394 208,657 1,263 Contractual services 36,873 25,063 (11,810) Fixed charges 27,138 30,692 3,554 Commodities 131,314 121,912 (9,402) Capital outlay 117,875 121,680 3,805 520,594 508,004 (12,590) See accompanying notes to financial statements. -58- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) PUBLIC WORKS--Continued Street light and traffic control: Personal services $ 18,489 $ 15,990 $ (2,499) Contractual services 114,170 147,061 32,891 Fixed charges 6,119 5,256 (863) Commodities 13,682 23,530 9,848 152,460 191,837 39,377 Capital improvements: Contractual services 72,543 67,465 (5,078) Capital outlay 1,177,284 1,538,500 361,216 1,249,827 1,605,965 356,138 Municipal garage: Personal services 70,027 67,783 (2,244) Contractual services 18,978 29,582 10,604 Fixed charges 9,473 17,245 7,772 Commodities 13,367 5,577 (7,790) Capital outlay - 4,100 4,100 111,845 124,287 12,442 TOTAL PUBLIC WORKS 2,260,990 2,663,421 402,431 CULTURE AND RECREATION Library: Personal services 85,880 90,856 4,976 Contractual services 19,543 23,170 3,627 Fixed charges 38,311 41,174 2,863 Commodities 10,227 11,585 1,358 Capital outlay 34,758 45,077 10,319 TOTAL CULTURE AND RECREATION 188,719 211,862 23,143 TOTAL EXPENDITURES 18.212.409 t 9.113.023 $ 900.614 See accompanying notes to financial statements. -59- VILLAGE OF OAK BROOK, ILLINOIS SPECIAL REVENUE FUND - MOTOR FUEL TAX FUND COMBINING BALANCE SHEET April 30, 1988 and 1987 1988 1987 ASSETS Investments $246,909 $114,402 Receivables, net: Property taxes - - Allotments 10,426 9,633 TOTAL ASSETS 124 LIABILITIES AND FUND EQUITY Fund balances: Unreserved: Undesignated $257,335 $124,035 —' TOTAL LIABILITIES AND FUND EQUITY $25Z� 24 See accompanying notes to financial statements. -60- VILLAGE OF OAK BROOK, ILLINOIS SPECIAL REVENUE FUND - MOTOR FUEL TAX FUND _ COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Years Ended April 30, 1988 and 1987 1988 1987 Revenues: Intergovernmental $122,368 $122,499 Property taxes - - Interest on investments 10,932 9,173 _ TOTAL REVENUES 133,300 131,672 Expenditures--public works - - EXCESS OF REVENUES OVER EXPENDITURES 133,300 131,672 Other financing uses-- operating transfers out - (110,000) EXCESS OF REVENUES OVER EXPENDITURES AND OTHER FINANCING USES 133,300 21,672 Fund balances (deficit) at May 1, 1987 124,035 102,363 FUND BALANCES (DEFICIT) AT APRIL 30, 1988 See accompanying notes to financial statements. r -61- VILLAGE OF OAK BROOK, ILLINOIS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET April 30, 1988 and 1987 Sports Core Equipment Totals Construction Replacement 1988 1987 ASSETS Investments $75,206 $144,200 $219,406 $102,064 Due from other funds 23,962 91,366 115,328 111,879 TOTAL ASSETS FUND EQUITY Fund balance: Unreserved--designated for subsequent years' expenditures $235,566 $235,566 $140,898 Undesignated $99,168 99,168 73,045 TOTAL FUND EQUITY 111LJ34 21 4 See accompanying notes to financial statements. -62- VILLAGE OF OAK BROOK, ILLINOIS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES i Years Ended April 30, 1988 and 1987 Sports Core Equipment Totals Construction Replacement 1988 1987 Revenues--interest on investments $ 2,161 $ 4,168 $ 6,329 $ 3,210 Expenditures - EXCESS OF REVENUES OVER EXPENDITURES 2,161 4,168 6,329 3,210 Other financing sources-- _ operating transfers in 23,962 90,500 114,462 107,500 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES 26,123 94,668 120,791 110,710 Fund balances at May 1, 1987 73,045 140,898 213,943 103,233 FUND BALANCES AT APRIL 30, 1988 $99_168 1 4 See accompanying notes to financial statements. -63- — VILLAGE OF OAK BROOK, ILLINOIS ENTERPRISE FUNDS COMBINING BALANCE SHEET — April 30, 1988 and 1987 Waterworks Sports Totals ASSETS System Core 1988 1987 Current assets: Cash $ 4,593 $ 21,671 $ 26,264 $ 97,248 Investments 1,460,908 133,908 1,594,816 2,261,243 Receivables (net, where applicable, of allowances for uncollectibles): Customers: Billed water sales 158,520 158,520 138,686 Unbilled water sales 131,501 131,501 113,894 Accrued interest 96,117 96,117 60,651 Other 6,559 40,377 46,936 42,758 392,697 40,377 433,074 355,989 Other assets 3,753 3,753 3,753 Inventory 38,433 38,433 20,670 TOTAL CURRENT ASSETS 1,858,198 238,142 2,096,340 2,738,903 Restricted assets-- investments 5,504,524 5,504,524 4,025,584 Property, plant and equipment 9,233,995 11,792,242 21,026,237 20,504,808 Less allowance for depreciation (2,670,946) (1,836,873) (4,507,819) (4,027,405) 6,563,049 9,955,369 16,518,418 16,477,403 — TOTAL ASSETS 113,925,771 110.193.511 124.119.282 123.241.890 -64- - - Waterworks Sports Totals System Core 1988 1987 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable $ 263,964 $ 104,359 $ 368,323 $ 216,811 Accrued payroll and vacation 8,919 22,325 31,244 37,568 Customer deposits 1,665 197,785 199,450 202,315 Due to other funds 23,962 23,962 38,663 TOTAL CURRENT LIABILITIES 274,548 348,431 622,979 495,357 Long-term liabilities: Revenue bonds outstanding--1973 issue 1,750,000 1,750,000 1,925,000 Revenue bonds outstanding--1976 issue 1,150,000 1,150,000 1,375,000 Unamortized bond discounts on 1973 and 1976 issues (29,928) (29,928) (35,098) TOTAL LONG-TERM LIABILITIES 2,870,072 2,870,072 3,264,902 TOTAL LIABILITIES 3,144,620 348,431 3,493,051 3,760,259 Fund equity: Contributed capital 11,025,590 11,025,590 11,025,590 Retained earnings (deficit): Reserved under revenue bond ordinance 3,744,082 3,744,082 3,690,082 Unreserved for Lake Michigan Water Project 362,502 Unreserved 7,037,069 (1,180,510) 5,856,559 4,403,457 TOTAL RETAINED EARNINGS (DEFICIT) 10,781,151 (1,180,510) 9,600,641 8,456,041 TOTAL FUND EQUITY 10,781,151 9,845,080 20,626,231 19,481,631 TOTAL LIABILITIES AND FUND EQUITY $13.925.771 tlO,193,5Ll $24.119.282 $23.241.890 s See accompanying notes to financial statements. -64- VILLAGE OF OAK BROOK, ILLINOIS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS (DEFICIT) Years Ended April 30, 1988 and 1987 Waterworks Sports Totals System Core 1988 1987 Operating revenues: Charges for services $ 2,399,216 $ 1,512,064 $3,911,280 $3,751,332 Miscellaneous 35,012 35,012 29,946 TOTAL OPERATING REVENUES 2,434,228 1,512,064 3,946,292 3,781,278 Operating expenses: Operation of facilities 790,273 1,297,227 2,087,500 2,188,614 General and administrative 20,627 185,930 206,557 177,638 Depreciation 254,370 238,966 493,336 460,422 TOTAL OPERATING EXPENSES 1,065,270 1,722,123 2,787,393 2,826,674 _ OPERATING INCOME (LOSS) 1,368,958 (210,059) 1,158,899 954,604 Nonoperating revenues (expenses): -� Interest on investments 335,827 5,347 341,174 383,366 Interest on bonds (171,575) (171,575) (191,450) Amortization of bond discount (5,170) (5,170) (5,170) Fiscal agents' fees (4,539) (4,539) (3,384) Construction _ reimbursements 4,700 4,700 6,700 Other revenue 4,183 (9,110) (4,927) 78,229 163,426 (3,763) 159,663 268,291 INCOME (LOSS) BEFORE OPERATING TRANSFERS 1,532,384 (213,822) 1,318,562 1,222,895 Operating transfers in 10,000 10,000 10,000 ... Operating transfers out (160,000) (23,962) (183,962) (185,000) NET INCOME (LOSS) 1,372,384 (227,784) 1,144,600 1,047,895 Retained earnings (deficit) at May 1, 1987 9,408,767 (952,726) 8,456,041 7,408,146 RETAINED EARNINGS (DEFICIT) AT APRIL 30, 1988 tl0.78l,1U V1,180,510 19.600.641 tB,456,041 See accompanying notes to financial statements. -65- VILLAGE OF OAK BROOK, ILLINOIS ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended April 30, 1988 and 1987 Waterworks Sports Totals System Core 1988 1987 Sources of working capital: Operations: Net income (loss) $1,372,384 $(227,784) $1,144,600 $1,047,895 Items not requiring working capital: Depreciation 254,370 238,966 493,336 460,422 Amortization of bond discount 5,170 5,170 5,170 TOTAL PROVIDED -- BY OPERATIONS 1,631,924 11,182 1,643,106 1,513,487 TOTAL SOURCES OF WORKING CAPITAL 1,631,924 11,182 1,643,106 1,513,487 Uses of working capital: Acquisition of fixed assets 484,180 50,171 534,351 295,543 Reduction in bonds payable 400,000 400,000 375,000 TOTAL USES OF WORKING CAPITAL 884,180 50,171 934,351 670,543 NET INCREASE (DECREASE) IN WORKING CAPITAL $ 747.744 (38 ) $ 708.755 $ 842.944 Elements of net increase (decrease) in working capital: Cash $ (3,540)' $ (67,444) $ (70,984) $ 47,331 Investments 806,824 ,/ 5,689 812,513 802,645 Receivables 72,908✓ 4,177 77,085 35,088 Other assets - (5,275) Inventory 17,763 17,763 3,564 Accounts payable (148,204),/ (3,308) (151,512) (11,302) Accrued payroll and vacation liability 6,693 ^1 (369) 6,324 (14,604) Customer deposits (600)+" 3,465 2,865 10,068 Due to other funds 13,66311' 1,038 14,701 (24,571) NET INCREASE (DECREASE) IN WORKING CAPITAL $ 747.744 (38.9.$4) 842,944 See accompanying notes to financial statements. -66- i VILLAGE OF OAK BROOK, ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS--BUDGET AND ACTUAL (NON-GAAP BASIS) Year Ended April 30, 1988 Actual-- Actual-- Variance GAAP Budgetary Favorable -� Basis Adjustments Basis Budget (Unfavorable) Operating revenues: Charges for services: _ Water sales $ 2,053,375 $2,053,375 $1,923,099 $130,276 Unmetered water 5,513 5,513 8,000 (2,487) Water tap on charges 195,053 195,053 150,000 45,053 Fire service charges 115,747 115,747 127,000 (11,253) Special service i charges 16,467 16,467 10,000 6,467 Water meter sales 13,061 13,061 25,000 (11,939) 2,399,216 2,399,216 2,243,099 156,117 _ Miscellaneous 35,012 35,012 34,000 1,012 TOTAL OPERATING REVENUES 2,434,228 2,434,228 2,277,099 157,129 Operating expenses: Operation of facilities: ... Source of supply: Personal _ services 7,852 7,852 3,089 (4,763) Contractual services 13,069 13,069 10,536 (2,533) Fixed charges 1,026 1,026 399 (627) Commodities 3,916 3,916 4,650 734 25,863 25,863 18,674 (7,189) Power and pumping: Personal services 18,102 18,102 19,633 1,531 Contractual services 473,606 473,606 597,400 123,794 Fixed charges 2,374 2,374 2,533 159 Commodities 2,329 2,329 4,236 1,907 496,411 496,411 623,802 127,391 Purification: Personal services 4,877 4,877 3,089 (1,788) i Contractual services 4,389 4,389 7,500 3,111 Fixed charges 640 640 399 (241) Commodities 18,112 18,112 16,300 (1,812) Capital outlay 28,018 28,018 27,288 (730) See accompanying notes to financial statements. -67- VILLAGE OF OAK BROOK, ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Year Ended April 30, 1988 Actual-- Actual-- Variance GAAP Budgetary Favorable Basis Adjustments Basis Budget (Unfavorable) Transmission and distribution: Personal services $ 100,448 $ 100,448 $ 102,201 $ 1,753 Contractual services 107,708 107,708 62,800 (44,908) Fixed charges 13,101 13,101 12,712 (389) Commodities 18,724 18,724 33,246 14,522 Capital outlay $ 38,100 38,100 60,930 22,830 239,981 38,100 278,081 271,889 (6,192) TOTAL OPERATION OF FACILITIES 790,273 38,100 828,373 941,653 113,280 General and administrative 20,627 20,627 27,714 7,087 Depreciation 254,370 (254,370) TOTAL OPERATING EXPENSES 1,065,270 (216,270) 849,000 969,367 120,367 OPERATING INCOME 1,368,958 216,270 1,585,228 1,307,732 277,496 Nonoperating revenue (expenses): Interest on investments 335,827 335,827 360,000 (24,173) Interest on bonds (171,575) (171,575) (171,575) Amortization of bond discount (5,170) (5,170) (5,170) Fiscal agents' fees (4,539) (4,539) (400) (4,139) Construction reimbursements 4,700 4,700 4,700 Other revenues 4,183 4,183 4,183 _ 163,426 163,426 188,025 (24,599) INCOME BEFORE OPERATING TRANSFERS 1,532,384 216,270 1,748,654 1,495,757 252,897 Operating transfers out (160,000) (160,000) (160,000) NET INCOME 1,372,384 tl.588,654 $1.335.7572 2 Retained earnings at May 1, 1987 9,408,767 Retained earnings at April 30, 1988 110.781,151 See accompanying notes to financial statements. -68- r VILLAGE OF OAK BROOK, ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION Year Ended Arpil 30, 1988 Property, Plant and Equipment Additions Balance and Balance Apr.30-1987 Transfers Apr.30-1988 _ Waterworks property, plant and equipment: Land and land rights $ 2,819 $ 2,819 Service of supply plant-- wells and springs 314,753 314,753 Structure and improvements 68,232 68,232 Electrical pumping equipment 119,123 $221,442 340,565 Total water treatment equipment 8,149 8,149 Distribution, reservoirs, mains and standpipes 7,533,269 224,611 7,757,880 Meters and meter installation 433,243 21,727 454,970 Hydrants 178,402 1,702 180,104 Miscellaneous tools and equipment: Office furniture and equipment 12,697 98 12,795 Transportation equipment 38,163 (12,922) 25,241 Tools, shop, and garage equipment 2,852 2,852 Laboratory equipment 1,070 1,070 Miscellanous equipment 38,562 14,600 53,162 Intangible plant-- organization 11,403 11,403 18,762,73Z 1471,25a $9.233.995 See accompanying notes to financial statements. -69- - Rate of Depreciation Allowances for Deprecition or Additions Net Asset Amortization Balance and Balance Value (Years) Apr.30-1987 Transfers Apr.30-1988 Apr.30-1988 $ 2,819 40 $ 104,824 $ 7,870 $ 112,694 202,059 40 23,666 1,706 25,372 42,860 40 42,224 8,305 50,529 290,036 10 6,357 815 7,172 977 40 1,875,397 191,138 2,066,535 5,691,345 15 232,588 29,607 262,195 192,775 40 48,266 4,481 52,747 127,357 10 5,143 1,275 6,418 6,377 6 38,163 (12,922) 25,241 5 2,852 2,852 5 1,070 1,070 - 5 37,545 9,173 46,718 6,444 5 11,403 11,403 2.429.498 J241.,448t2,670,946 6.563.049 - - -69- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND .. SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT--BUDGET AND ACTUAL (NON-GAAP BASIS) Year Ended April 30, 1988 Actual-- Variance �. Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating revenues: Charges for _. services: Memberships: Golf course $ 476,471 $ 476,471 $ 501,609 $(25,138) Bath and tennis 300,349 300,349 337,650 (37,301) Open fields 755 755 4,000 (3,245) _. 777,575 777,575 843,259 (65,684) Rentals: Golf course 173,714 173,714 176,276 (2,562) Bath and tennis 2,200 2,200 3,000 (800) Open fields 54,719 54,719 38,550 16,169 230,633 230,633 217,826 12,807 Membership events 15,738 15,738 13,400 2,338 Food and beverage sales and service charges: Golf course 113,110 113,110 139,679 (26,569) Bath and tennis 363,342 363,342 436,380 (73,038) Open fields 11,666 11,666 12,000 (334) 488,118 488,118 588,059 (99,941) TOTAL OPERATING REVENUES 1,512,064 1,512,064 1,662,544 (150,480) See accompanying notes to financial statements. -70- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Year Ended April 30, 1988 Actual-- Variance Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating expenses: Operation of facilities: Golf course: Pergonal services $ 112,232 $ 112,232 $ 118,536 $ 6,304 Contractual services 272,570 272,570 350,834 78,264 Fixed charges 178,138 178,138 61,573 (116,565) Commodities 36,291 36,291 33,325 (2,966) Capital outlay $ 3,249 3,249 137,800 134,551 599,231 3,249 602,480 702,068 99,588 Bath rind tennis: Pergonal services 228,102 228,102 228,434 332 Contractual services 94,698 94,698 79,885 (14,813) Fixed charges 42,884 42,884 50,065 7,181 Commodities 138,219 138,219 162,150 23,931 Capital outlay 34,324 34,324 36,000 1,676 503,903 34,324 538,227 556,534 18,307 �- Open fields: Pergonal services 19 19 1,000 981 Contractual services 17,052 17,052 16,100 (952) Fixed charges 1,116 1,116 1,991 875 Commodities 370 370 800 430 Capital outlay 7,000 7,000 18,557 18,557 26,891 8,334 Food---golf course: Pergonal services 17,392 17,392 21,319 3,927 Contractual services 193 193 150 (43) Fixed charges 1,251 1,251 1,573 322 Commodities 44,098 44,098 54,200 10,102 Capital outlay 283 283 (283) 62,934 283 63,217 77,242 14,025 See accompanying notes to financial statements. -71- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Year Ended April 30, 1988 Actual-- Variance Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating expenses--Continued: Operation of facilities--Continued: Food--bath and tennis: Personal services $ 43,666 $ 43,666 $ 38,107 $ (5,559) Contractual services 3,575 3,575 3,200 (375) Fixed charges 3,824 3,824 4,103 279 . Commodities 34,270 34,270 27,250 (7,020) Capital outlays $ 3,672 3,672 (3,672) 85,335 3,672 89,007 72,660 (16,347) Beverage--bath and tennis: Personal services 3,459 3,459 4,000 541 Fixed charges 245 245 290 45 Commodities 471 471 3,600 3,129 4,175 4,175 7,890 3,715 V Grill operations: Personal services 10,115 10,115 9,000 (1,115) _ Contractual services 526 526 1,035 509 Fixed charges 724 724 644 (80) Commodities 11,727 11,727 15,200 3,473 " 23,092 23,092 25,879 2,787 TOTAL OPERATION OF FACILITIES 1,297,227 41,528 1,338,755 1,469,164 130,409 -- See accompanying notes to financial statements. -72- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND -- SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT--BUDGET AND ACTUAL (NON-GAAP BASIS)--Continued Year Ended April 30, 1988 Actual-- Variance Actual-- Budgetary Favorable _- GAAP Basis Adjustments Basis Budget (Unfavorable) Operating expenses--Continued: General and _ administrative: Personal services $ 92,677 $ 92,677 $ 86,381 $ (6,296) Contractual services 47,487 47,487 30,175 (17,312) Fixed charges 38,877 38,877 26,593 (12,284) Commodities 6,889 6,889 6,350 (539) Capital outlay $ 7,666 7,666 2,900 (4,766) 185,930 7,666 193,596 152,399 (41,197) Depreciation 238,966 (238,966) TOTAL OPERATING EXPENSES 1,722,123 (189,772) 1,532,351 1,621,563 89,212 OPERATING I14COME (LOSS) (210,059) 189,772 (20,287) 40,981 (61,268) Nonoperating revenue (expenses): _. Interest on investments 5,347 5,347 9,000 (3,653) Other revenue (9,110) (9,110) (91110) I14COME (LOSS) (3,763) (3,763) 99000 (12,763) i BEFORE OPERATING TRANSFERS (213,822) 189,772 (24,050) 49,981 (74,031) Operating transfers in 10,000 10,000 10,000 - Operating transfei7s out (23,962) (23,962) (23,962) - NET I14COME (LOSS) (227,784) 189.772 $ (38.012) $ 36.019 W4,031) Deficit a1_ May 1, 1987 (952,726) DEFICIT AT APRIL 30, 1988 $(1.180.510) See accompanying notes to financial statements. -73- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND — SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION ... Year Ended April 30, 1988 Property, Plant and Equipment Additions Balance and Balance Apr.30-1987 Transfers Apr.30-1988 _ Land and land rights $ 8,252,585 $ 8,252,585 Golf course land improvements 1,203,338 1,203,338 Other land improvements 339,535 339,535 Clubhouse: Golf 306,166 $ 3,249 309,415 Bath and tennis 383,776 7,722 391,498 - Other improvements 458,348 12,598 470,946 Pools 104,418 8,976 113,394 Tennis courts 406,266 17,626 423,892 Clubhouse equipment 110,265 110,265 Golf equipment 60,806 60,806 Buildings 116,568 116,568 r 11.742.07 11.792.242 See accompanying notes to financial statements. r -74- Rate of Depreciation Allowances for Depreciation or Additions Net Asset ` Amortization Balance and Balance Value (.'ears) Apr.30-1987 Transfers Apr.30-1988 Apr.30-1988 -- $ 8,252,585 10 $ 785,599 $120,334 $ 905,933 297,405 20 129,088 16,977 146,065 193,470 40 47,320 7,694 55,014 254,401 40 83,907 9,691 93,598 297,900 10 202,450 46,465 248,915 222,031 '- 20 44,299 5,445 49,744 63,650 15 132,623 27,672 160,295 263,597 5 105,325 1,053 106,378 3,887 .-� 5 60,085 721 60,806 - 40 7,211 2,914 10,125 106,443 1.597.907 t23 $1.836.873 t 9.955.369 -74- VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS COMBINING BALANCE SHEET April 30, 1988 and 1987 Policemen's Firefighter's Totals _ Pension Pension 1988 1987 ASSETS Cash $ 22,319 $ 23,473 $ 45,792 $ 19,563 Investments 6,267,540 6,563,864 12,831,404 11,548,862 Receivables: Accrued interest receivable 90,644 124,107 214,751 213,538 Other 11,357 10,739 22,096 19,575 Due from other funds 23,974 22,836 46,810 65,821 TOTAL ASSETS $L.415.834 6.745.019 $13.160.853 tll.867,3j2 LIABILITIES Accounts payable $ 7,570 $ 9,846 $ 17,416 $ 15,363 'DOTAL LIABILITIES 7,570 9,846 17,416 15,363 FUND EQUITY Fund balances: Reserved for employees' retirement 6,359,386 6,095,214 12,454,600 10,190,749 Unreserved- undesignated 48,878 639,959 688,837 1,661,247 170TAL FUND EQUITY 6,408,264 6,735,173 13,143,437 11,851,996 TOTAL LIABILITIES AND FUND EQUITY jkZ4aAl2 $13,160,85a tll,867,352 See accompanying notes to financial statements. -75- VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES .. Years Ended April 30, 1988 and 1987 Policemen's Firefighter's Totals Pension Pension 1988 1987 Operating revenues: Interest on investments $ 468,630 $ 459,037 $ 927,667 $ 999,552 Contributions: Employees 110,697 97,322 208,019 206,546 Village 196,043 189,011 385,054 394,027 Other 100 100 - 306,840 286,333 593,173 600,573 TOTAL OPERATING REVENUES 775,470 745,370 1,520,840 1,600,125 Operating expenses: General and administrative 1,631, 1,724 3,355 3,779 Benefit payments 112,718 113,326 226,044 171,876 TOTAL OPERATING EXPENSES 114,349 115,050 229,399 175,655 NET INCOME 661,121 630,320 1,291,441 1,424,470 Fund balances at May 1, 1987 5,747,143 6,104,853 11,851,996 10,427,526 FUND BALANCES AT APRIL 30, 1988 $6.408.264 $6.735.173 tl3,143,43Z 11.851.996 See accompanying notes to financial statements. r -76- VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended April 30, 1988 and 1987 Policemen's Firefighter's Totals .. Pension Pension 1988 1987 Sources of working capital— Operations— net .. net income $661,121 $630,320 $1,291,441 $1,424,470 Uses of working capital— Net increase in pension investments 659,250 623,292 1,282,542 1,376,109 NET INCREASE (DECREASE) IN WORKING CAPITAL 7,028 $ 8.899 $ 48.361 ,. Elements of net increase (decrease) in working capital: '-' Cash $ 15,876 $ 10,353 $ 26,229 $ 18,887 Receivables (3,768) 7,502 3,734 39,645 Due from other funds (10,837) (8,174) (19,011) 5,192 Accounts payable 600 (2,653) (2,053) (15,363) NET INCREASE (DECREASE) IN WORKING CAPITAL 1 1 7,028 $ 8.899 $ 48.361 See accompanying notes to financial statements. -77- r VILLAGE OF OAK BROOK, ILLINOIS POLICEMEN'S PENSION FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE--BUDGET AND ACTUAL Year Ended April 30, 1988 Variance Actual-- Favorable GAAP Basis Budget (Unfavorable) Operating revenues: Interest on investments $ 468,630 $430,000 $ 38,630 Contributions: Employees 110,697 130,000 (19,303) Village 196,043 230,000 (33,957) Other 100 - 100 306,840 360,000 (53,160) TOTAL OPERATING REVENUES 775,470 790,000 (14,530) Operating expenses: General and administrative 1,631 1,575 (56) Benefit payments 112,718 113,000 282 TOTAL OPERATING EXPENSES 114,349 114,575 226 NET INCOME 661,121 14 4) Fund balance at May 1, 1987 5,747,143 FUND BALANCE AT APRIL 30, 1988 t6,408,264 r See accompanying notes to financial statements. i i �r -78- — VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTER'S PENSION FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE--BUDGET AND ACTUAL Year Ended April 30, 1988 Variance Actual-- Favorable GAAP Basis Budget (Unfavorable) Ope:..rating revenues: -� Interest on investments $ 459,037 $440,000 $ 19,037 Contributions: Employees 97,322 97,200 122 Village 189,011 215,000 (25,989) 286,333 312,200 (25,867) TOTAL OPERATING REVENUES 745,370 752,200 (6,830) Operating expenses: General and administrative 1,724 2,125 401 Benefit payments 113,326 100,000 (13,326) TOTAL OPERATING EXPENSES 115,050 102,125 (12,925) NET INCOME 630,320 �) Fund balance at May 1, 1987 6,104,853 FUND BALANCE AT APRIL 30, 1988 $6.735.173 -- See accompanying notes to financial statements. -79- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS--BY SOURCES April 30, 1988 and 1987 1988 1987 -► General fixed assets: Land $ 281,829 $ 281,829 Buildings and improvements 4,889,375 4,888,475 Furniture and fixtures 271,619 263,667 Roadway improvements 5,131,879 4,177,789 Automotive equipment 1,293,050 1,158,766 Other equipment 1,416,510 1,324,075 Library books 333,899 301,847 TOTAL GENERAL FIXED ASSETS t13,618,1kl t12,396,44a Investment in general fixed assets from: Current revenues $11,108,262 $ 9,886,549 Proceeds of indebtedness 1,582,783 1,582,783 Gifts 518,738 518,738 Motor Fuel Tax Fund revenues 246,098 246,098 Federal Revenue Sharing Fund revenues 131,751 131,751 Special Service Area No. 1 Fund revenues 30,529 30,529 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $13.618.161 tl2,396,448 ._ See accompanying notes to financial statements. -80- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS--BY FUNCTION AND ACTIVITY April 30, 1988 Buildings Furniture and amd Function and Activity Land Improvements Fixtures General government: Counsel and legal $ 3,067 Village manager 5,831 Finance and accounting 15,484 Engineering $ 6,580 16,274 Village Hall 273,741 $2,729,384 118,338 TOTAL GENERAL GOVERNMENT 280,321 2,729,384 158,994 Public safety: ... Police Department 11,426 23,260 Fire Department 1,181,688 39,062 Emergency medical service 813 Inspection bureau 3,171 TOTAL PUBLIC SAFETY 1,193,114 66,306 Public works: Administrative 5,461 Street maintenance Street improvements 30,363 Municipal garage 763,695 5,386 TOTAL PUBLIC WORKS 794,058 10,847 Culture and recreation--Library 1,508 172,819 35,472 TOTAL GENERAL FIXED ASSETS 2 13$ 4.889.375 See accompanying notes to financial statements. -81- Roadway Automotive Other Library Improvements Equipment Equipment Books Total $ 13,854 $ 16,921 $ 16,367 26,344 48,542 108,918 124,402 10,857 56,095 89,806 9,929 11,591 3,142,983 37,153 216,802 3,422,654 371,457 286,957 693,100 $ 47,711 273,005 557,092 2,098,558 154,640 92,036 247,489 17,396 25,532 46,099 ._ 47,711 816,498 961,617 3,085,246 41,941 5,568 52,970 397,458 167,232 564,690 5,084,168 3,024 5,117,555 39,034 808,115 5,084,168 439,399 214,858 6,543,330 23,233 $333,899 566,931 1.293,050 tl.416,510 13aa..M 13.618.161 -81- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-- BY FUNCTION AND ACTIVITY April 30, 1988 General General Fixed Fixed Assets Assets May 1 April 30 Function and Activity 1987 Additions Retirements 1988 General government: Counsel and legal $ 10,361 $ 6,560 $ 16,921 Village manager 46,809 1,733 48,542 '- Finance and accounting 123,489 913 124,402 Engineering 87,877 1,929 89,806 Village Hall 3,135,623 7,360 3,142,983 TOTAL GENERAL GOVERNMENT 3,404,159 18,495 3,422,654 r Public safety: Police Department 623,901 69,199 693,100 Fire Department 2,024,952 73,606 2,098,558 Emergency medical service 242,639 4,850 247,489 Inspection bureau 39,256 6,843 46,099 TOTAL PUBLIC SAFETY 2,930,748 154,498 3,085,246 Public works: Administrative 52,250 720 52,970 Street maintenance 460,815 117,875 $14,000 564,690 Street improvements 4,208,157 909,398 5,117,555 Municipal garage 808,115 808,115 TOTAL PUBLIC WORKS 5,529,337 1,027,993 14,000 6,543,330 Culture and recreation-- Library 532,204 34,727 566,931 TOTAL GENERAL FIXED ASSETS t12,396,4LE tl,235,711 IIAQQ_ t13,618,161 See accompanying notes to financial statements. -82- -� Table 1 VILLAGE OF OAK BROOK, ILLINOIS GENERAL GOVL'itLV!"IENTAL EXPENDITURES BY FUNCTION (1) Last Ten Fiscal Years Culture Health Fiscal General Public Public and Debt and Total Year Legislative Government Safety Works Recreation Service Welfare Expenditures 1988 $311,918 $895,764 $4,616,312 $2,089,485 $195,341 $987,234 $ - $9,096,054 1987 254,617 911,668 4,450,380 1,384,901 181,778 916,214 - 8,099,558 1986 256,953 724,353 4,047,863 1,051,920 177,265 942,064 - 7,200,418 1985 222,469 726,444 4,032,499 1,378,771 136,526 967,861 - 7,464,570 1984 218,095 999,325 3,460,935 1,229,691 149,736 891,320 - 6,949,102 1983 193,109 878,409 3,396,808 812,987 113,037 912,849 - 6,307,199 1982 650,781 960,601 3,208,328 1,170,176 105,712 884,488 - 6,980,086 1981 126,202 779,972 2,944,083 989,810 131,876 884,485 - 5,856,428 1980 - 824,226 2,538,696 598,430 105,186 854,650 16,595 4,937,783 1979 - 829,778 2,222,086 707,163 100,629 740,930 16,550 4,617,136 Note 1--Includes expenditures of General Fund, Special Revenue Funds, and Debt Service Fund. Table 2 VILLAGE OF OAK BROOK, ILLINOIS GENERAL REVENUES BY SOURCE (1) Last Ten Fiscal Years Licenses Fines Interest Fiscal Property and Service and on Year Intergovernmental Taxes Permits Charges Penalties Investment Miscellaneous Total 1988 $6,695,200 $627,708 $295,364 $204,889 $189,558 $421,013 $185,943 $8,619,675 1987 6,885,727 598,342 279,693 215,853 146,691 404,114 339,036 8,869,456 1986 5,952,519 570,623 248,343 218,107 162,648 427,195 190,378 7,769,813 01i 1985 5,949,838 691,686 287,217 212,816 204,809 453,655 56,389 7,856,410 1984 5,343,246 602,517 326,633 214,758 205,838 387,418 52,928 7,133,338 1983 4,955,919 352,932 212,984 159,897 139,872 472,537 13,314 6,307,455 1982 4,894,684 518,701 238,017 309,682 155,465 619,703 99,191 6,835,443 1981 4,644,790 673,830 195,474 131,836 109,239 523,492 45,927 6,324,588 1980 4,987,942 444,767 192,044 148,497 88,678 395,543 400,565 6,658,036 1979 3,560,387 740,060 215,235 240,561 103,367 246,731 32,646 5,138,987 Note 1--Includes revenues of General Fund, Special Revenue Funds, and Debt Service Fund. 1 1 I ) 1 t I I 1 1 1 I 1 ) I 1 I ) Table 3 VILLAGE OF OAK BROOK, ILLINOIS SPECIAL ASSESSMENT COLLECTIONS (1) - Last Five Fiscal Years Ratio of Current Current Collections Total Fiscal Assessments Assessments of Amount Outstanding Year Due Collected Due Assessments 1963 $6,000 $6,063 101.05% $ 5,615 1986 6,000 6,137 102.28 11,615 1965 6,000 6,071 101.18 17,615 1984 6,000 6,061 101.02 23,615 1963 6,000 6,066 101.10 29,615 Noter 1--Special assessments are levied by the Village on properties in the York Woods subdivision of the Village for street light improve- ments. There were no special assessments prior to 1983 or subsequent to 1.'987. -85- Table 4 VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (1) Total Tax Current Collections Outstanding' Year and Delinquent Fiscal Abatement Total Tax Write-Offs Taxes as Year Percent Delinquent and Collections as Percent Outstanding Percent of Tax Ended Total Current Tax of Levy Tax Forfeiture and of Current Delinquent Current Year April 30 Tax Levy Collections Collected Collections Write-Offs Write-Offs Levy Taxes Levy 1986(2)(5) 1988 $608,701 $598,279 98.30% $3,053 $1,254 $602,586 99.00% $ 1,052 .17% 1985(2)(4) 1987 621,310 618,592 99.56 1,069 1,880 621,541 100.04 838 .13 1984(2) 1986 568,597 562,842 98.99 3,473 4,924 571,239 100.46 831 .15 1983(2) 1985 591,472 582,336 98.46 4,785 8,431 595,552 100.69 705 .12 1 1982(2) 1984 523,892 519,179 99.10 3,067 1,375 523,621 99.95 271 .05 00rn 1981(3) 1983 277,439 273,157 98.46 1,609 4,800 279,566 100.77 - 1980(2) 1982 518,030 514,912 99.40 3,789 2,967 521,668 100.70 - - 1979(2) 1981 483,900 479,949 99.18 16 1,409 481,374 99.48 2,526 .52 1978 1980 748,498 729,257 97.43 1,132 7,279 737,668 98.55 10,830 1.45 Note 1--Prior to the 1981 tax levy, the Village levied property taxes for debt service purposes only and commenced such levies for the 1977 tax year. Taxes are collected during the summer months of the year following the year of the levy. Thus, collec- tions are made in the fiscal year two years behind the year of the levy. Note 2--The 1979, 1980, 1982, 1983, 1984 and 1985 levies were abated by $300,000. These funds were contributed from excess revenues of the General Fund. Note 3--The 1981 levy was abated by $600,000. These funds were contributed from excess revenues of the General Fund. Note 4--The 1986 levy, collected in the summer of 1987, was $608,701 after a $300,000 abatement to be paid by the General Fund. Note S--The 1987 levy, to be collected in the summer of 1988, was $654,100 after a $300,000 abatement to be paid by the General Fund. 1 ! ! 1 1 1 ) 1 1 1 ) 1 ) 1 ! 1 - Table 5 VILLAGE OF OAK BROOK, ILLINOIS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (2) Last Ten Fiscal Years Ratio of Total Personal Assessed/ Real Property Property(1) Total Total Estimated Estimated Estimated Estimated _. Fiscal Actual Actual Actual Actual Year Assessed Value Assessed Value Assessed Value Value - 1988 $611,665 $1,853,530 $611,665 $1,853,530 33.00% 1987 445,776 1,350,836 445,776 1,350,836 33.00 1986 396,911 1,202,761 396,911 1,202,761 33.00 1985 373,266 1,131,109 373,266 1,131,109 33.00 1984 347,271 1,052,336 347,271 1,052,336 33.00 1983 318,675 965,680 318,675 965,680 33.00 1982 293,897 890,597 293,897 890,597 33.00 1981 257,727 780,990 257,727 780,990 33.00 1980 213,643 647,403 213,643 647,403 33.00 1979 184,832 554,551 $29,230 $87,699 214,062 642,250 33.33 - Note 1--Personal property tax not assessed as of 1980 due to enactment of the personal property replacement tax by state statute. Note 2---Dollar amounts in thousands. -87- Table 6 ^ VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX RATES--ALL OVERLAPPING GOVERNMENTS -. (Per $100 Assessed Valuation) Last Ten Fiscal Years ^ Village Junior Grade High Oak Brook Hinsdale Fiscal of Basic College School School Park Sanitary Year Total Oak Brook Town(1) #502 #53 #86 District District 1988 4.3540 .0949 1.0587 .2341 .9364 1.8906 .1014 .0379 1987 4.6970 .1366 .9572 .2551 1.2297 1.9233 .1423 .0528 ^ 1986 5.1729 .1566 1.2444 .2450 1.3314 1.9461 .1918 .0576 1985 4.8476 .1524 1.0265 .2424 1.2050 1.9570 .2035 .0608 1984 4.6286 .1704 .9162 .2426 1.1307 1.9201 .1663 .0623 ^ 1983 4.9090 .1645 .9452 .2318 1.4383 1.8883 .1763 .0646 1982 4.6863 .0944 .9425 .2222 1.3649 1.8334 .1598 .0691 ^ 1981 5.1113 .2010 1.0036 .1904 1.5661 1.9150 .1558 .0794 1980 5.8149 .2265 1.0629 .2070 2.2248 1.8620 .1341 .0976 - 1979 5.6082 .3495 .9350 .1953 1.7695 1.9910 .2414 .1065 ^ Note 1--Includes all county, forest preserve, township and water commission rates. Source: Du Page County Clerk's office, Revenue Division. ^ ^ ^ ^ -88- Table 7 VILLAGE OF OAK BROOK, ILLINOIS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years Ratio of Net Net -- Assessed Debt Bonded Bonded Value Gross Service Net Debt to Debt Fiscal (in Bonded Monies Bonded Assessed Per Year Population Thousands) Debt(1) Available Debt Value Capita 1988 8,000(2) $611,665 $ 5,650,000 $510,389 $ 5,139,611 .840% $ 642 1987 8,000(2) 445,776 6,350,000 416,669 5,933,331 1.331 742 1986 8,000(2) 396,911 6,950,000 287,636 6,662,364 1.679 833 1985 7,263(3) 373,266 7,550,000 224,642 7,325,358 1.963 1,009 1984 7,263(3) 347,271 8,150,000 161,147 7,988,853 2.301 1,100 1983 6,641(4) 318,675 8,670,105 120,337 8,549,768 2.683 1,287 1982 6,641(4) 293,897 9,441,158 163,155 9,278,003 3.157 1,397 1981 6,641(4) 257,727 10,078,228 178,051 9,900,177 3.841 1,491 1980 5,281(5) 213,643 10,721,000 (221,744) 10,942,744 5.122 2,072 1979 5,281(5) 214,062 11,402,317 116,239 11,286,078 5.272 2,137 Note 1-•-Includes total gross bonded debt, including all components of the general long-term debt account group, with the exception of accrued vacation pay. Note 2-.-July 1986 annexation of the Oak Brook Club increased population to approximately 8,000. Note 3-1983 special census. Note 4-•-1980 census. Note 5-•-1975 census. Note 6---General Obligation Recreation Bonds were issued on September 1, 1977 with the first principal payment due December 1, 1979. -89- Table 8 w VILLAGE OF OAK BROOK, ILLINOIS COMPUTATION OF LEGAL DEBT MARGIN April 30, 1988 w Assessed value 611.665.173 Debt limit 8.625% of assessed value $ 52,756,121 Debt applicable to debt limit--General Obligation Recreation Bonds 5,650,000 LEGAL DEBT MARGIN 47.106.121 w w w w w -90- Table 9 VILLAGE OF OAK BROOK, ILLINOIS COMPUTATION OF DIRECT AND OVERLAPPING DEBT April 30, 1988 Percentage Amount Applicable to Applicable to Net Debt Village of Village of Jurisdiction Outstanding Oak Brook Oak Brook Village of Oak Brook $ 5,650,000 100.00% $ 5,650,000 Du :Page County 11,660,000 5.49 640,134 Du 'Page Forest Preserve 69,000,000 5.49 3,788,100 Du ;Page Water Commission 150,000,000 5.70 8,543,972 Sanitary districts 2,000,000 24.79 495,800 Junior college district 5,800,000 5.12 296,960 Elementary school districts 8,914,000 11.53 1,027,784 High school districts 21,906,000 10.00 2,190,600 TOTAL t22,633,350 Source: Du Page County Clerk's office. -91- Table 10 VILLAGE OF OAK BROOK, ILLINOIS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Nine Fiscal Years Ratio of Total Debt Service Fiscal Debt Total General to Total Year Principal Interest Service Expenditures(1) Expenditures 1988 $700,000 $302,400 $1,002,400 $8,092,870 12.39% 1987 600,000 328,200 928,000 7,183,344 12.92 1986 600,000 354,000 954,000 6,258,354 15.24 1985 600,000 379,800 979,800 6,495,726 15.08 1984 500,000 390,550 890,550 6,056,503 14.70 1983 500,000 412,050 912,050 5,392,800 16.91 1982 450,000 433,825 883,825 5,963,781 14.82 1981 400,000 454,650 854,650 4,891,200 17.47 1980(2) 270,000 477,410 747,410 5,061,283 14.77 Note 1--Includes General Fund only. Note 2--Bonds were issued on September 1, 1977 with the first principal payment due December 1, 1979. w +w w w -92- Table 11 VILLAGE OF OAK BROOK, ILLINOIS REVENUE BOND COVERAGE--WATERWORKS SYSTEM BONDS Last Ten Fiscal Years Net Revenue Available Fiscal Gross for Debt Debt Service Requirements Year Revenue(1) Expenses(2) Service(3) Principal Interest Total Coverage 1988 $2,778,938 $810,900 $1,968,038 $400,000 $171,575 $571,575 344% 1987 2,574,660 906,055 1,668,605 375,000 191,450 566,450 295 1986 2,581,462 801,823 1,779,639 350,000 209,950 559,950 318 1985 2,621,901 819,550 1,802,351 350,000 228,600 578,600 312 1984 2,248,398 712,692 1,535,706 325,000 246,100 571,100 269 1983 2,002,585 540,260 1,462,325 300,000 261,525 561,525 260 1982 1,814,363 436,134 1,378,229 275,000 275,550 550,550 250 1981 1,665,697 510,744 1,154,953 250,000 289,425 539,425 214 1980 1,557,714 374,346 1,183,368 225,000 300,925 525,925 225 1979 1,604,002 386,149 1,217,853 225,000 312,425 537,425 227 Note 1---Represents gross revenue, including operating revenue, interest on investments, reimbursements and other revenue. Note 2---Represents operating expenses, excluding depreciation. Note 3---Represents gross revenue less expenses. -93- — Table 12 VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC STATISTICS Education Level in Per Years of Fiscal Capita Median Formal Unemployment Year Population Income Age Education Rate 1984(1) 7,263 $22,737 39 14.5 3.14% 1970(2) 4,164 8,997 34 13.3 .07 — Source 1--1983 Special Census and 1980 Federal Census. — Source 2--1970 Federal Census. - - - - - - - - -94- — Table 13 VILLAGE OF OAK BROOK, ILLINOIS PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS Last Ten Calendar Years Commercial Residential Estimated Construction Construction Total Number Number Property Calendar of Value (in of Value (in Bank Deposits(1) Value (in Year Units Thousands) Units Thousands) (in Thousands) Thousands) 1987 1 $35,000 100 $36,462 $1,171,352,000 $1,573,724 1986 4 52,985 113 34,263 1,041,202,000 1,350,836 1985 1 1,975 124 28,453 929,645,000 1,202,761 1984 3 15,349 105 25,861 841,308,000 1,131,109 1983 5 15,575 98 22,398 754,645,000 1,052,336 1982 2 11,943 55 6,937 657,982,000 965,680 1981 1 798 63 14,618 508,321,000 890,597 1980 6 14,554 81 19,446 433,987,000 780,990 1979 6 18,167 119 17,487 647,403 1978 17 29,295 138 16,367 642,250 Source--•Polling of all banks in Village of Oak Brook. Data for years prior tc 1980 was not available. -95- Table 14 VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL TAXPAYERS April 30, 1988 Percentage of 1987 Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Urban Investment and Oak Brook Shopping Development Co. Center property $ 21,229,913 3.5% McDonald's Corporation Office Campus 20,347,650 3.3 _ Oak Brook International Office Office buildings 12,154,835 2.0 La Salle Partners Commerce Plaza 11,772,901 1.9 McDonald's Corporation Corporate office headquarters 11,134,700 1.8 Regency Towers Office buildings 10,182,324 1.7 Drake Hotel and offices 9,889,552 1.6 Marshall Field & Co.-Batus Holdings Retail store 6,839,305 1.1 Manufactures Life Real Estate Executive towers 6,258,996 1.0 Oak Brook Hyatt House Hotel 6,228,522 1.0 Eastman Kodak Regional headquarters 5,669,246 .9 Marriott Hotel 5,448,569 .9 John Buck Co. Office building 5,223,983 .9 Chicago Bridge and Iron Corporate office 5,053,060 .8 Sears, Roebuck & Co. Retail store 3,816,806 .6 $141.250.362 23.0% -96- Table 15 VILLAGE OF OAK BROOK, ILLINOIS INSURANCE IN EFFECT Fiscal Year 1987-1988 Name of Company Policy Period Amount of Type c)f Insurance (Policy Number) From To Coverage Premium Employees benefit St. Paul Insurance 5-15-88 5-15-89 $ 750,000 $ 258 progrEans liability Company (GL00606862) Boiler End machinery Chubb Group of 5-15-88 5-15-89 1,000,000 1,475 insurance Insurance Companies (7829-49-77) Treasurer's bond Kemper Group 4-13-88 4-13-89 100,000 93 _ Insurance Company (35M-061-900-03) Volunteer accident Home Insurance 5-15-88 5-15-89 20,000 1,155 insurance Company (HVF-7-25-85) _ Host Liquor Continental 11-24-87 11-24-88 1,000,000 2,519 Liability Casualty (RDD7176568) Lloyds, London (BL25507CA) Note--The Village entered into a contractual agreement with 14 other municipal- ities to form the Intergovernmental Risk Management Agency (IRMA), which through its risk-sharing provisions provides the Village with its insurance coverage for liability, property damage, workmen's compensation, and surety risks not covered by the Village's Treasurer's Bond. The Village's contribution to this cooperative agency for 1988 was $263,148 and was determined by the pro rata share for each municipality's audited revenues and loss experience for the previous year, to be sufficient annually to fund administrative expenses and create sufficient reserves for claim payments and the purchase of excess insur- ance. The Agency provides loss protection in excess of a deductible of $1,000 per occurrence to be paid by each municipality. The Agency is required to pay up to $250,000 per occurrence for loss or injury within the scope of its self- insurance coverage. The Agency has also purchased excess catastrophe insurance over the amount of its $250,000 obligation and aggregate stop loss insurance. _ The amount of excess insurance is $33,250,000 per occurrence for liability claims and $29,750,000 for property claims. The Agency has contracted the services of Gallagher Bassett Insurance Service for the claims administration function. As of April 30, 1988, IRMA members totaled 44 municipalities. -97- Table 16 VILLAGE OF OAK BROOK, ILLINOIS MISCELLANEOUS STATISTICAL DATA April 30, 1988 Date of incorporation February 21, 1958 Form of government Seven member Board of Trustees, including President; Village Manager appointed by Board of Trustees Area 8.5 square miles _ Miles of streets 53 miles Number of street lights 445 Fire protection: Number of stations 2 Number of firemen 34 Number of volunteers 20 Police protection: Number of stations 1 Number of policemen and officers 35 Detention facilities Juvenile 2 Adult 6 Education (elementary only): Attendance centers 2 Number of teachers 45 Number of students 483 Municipal water department: Number of customers 4,976 Total water pumped Gallons 1,384,331,000 Average daily consumption Gallons 3,782,000 Miles of water mains 77 Building permits issued 117 Recreation: Oak Brook Sports Core-- 269 acres including — Bath and Tennis Club and 18-hole golf course Oak Brook Park District-- 66 acres including indoor and outdoor tennis Du Page County Forest Preserve--141 acres Culture: Number of libraries 1 Number of volumes 35,691 Census data 1960, 324; 1970, 4,164; 1975, 5,281; 1980, 6,641; 1984, 7,263 Employees: 120 full time 248 part time/seasonal -98-