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VILLAGE OF OAK BROOK
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended December 3 I, 2005
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VILLAGE OF OAK BROOK,ILLINOIS
` COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the Year Ended
December 31, 2005
Prepared by the Finance Department
Darrell J. Langlois
Finance Director/Treasurer
VILLAGE OF OAK BROOK, ILLINOIS
TABLE OF CONTENTS
Pae s
INTRODUCTORY SECTION
PrincipalOfficials.......................................................................................................... i
Organization Chart........................................................................................................
ti �i
Certificate of Achievement for
Excellence in Financial Reporting................................................................................ iii
Letter of Transmittal from the Finance Director/Treasurer............................................. W-viii
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT..................................................................... 1-2
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
L
Management's Discussion and Analysis.................................................................... 3-16
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets.................................................................................. 17
Statement of Activities.................................................................................... 18-19
Fund Financial Statements
Governmental Funds
BalanceSheet ............................................................................................ 20
Reconciliation of Fund Balances of Governmental Funds to the
Governmental Activities in the Statement of Net Assets ........................... 21
Statement of Revenues, Expenditures and Changes in Fund Balances......... 22
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Governmental
Activities in the Statement of Activities.................................................... 23
VILLAGE OF OAK BROOK, ILLINOIS _
TABLE OF CONTENTS (Continued)
Pae s
FINANCIAL SECTION (Continued)
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)
Basic Financial Statements(Continued)
Fund Financial Statements (Continued)
Proprietary Funds
Statement of Net Assets............................................................................. 24
Statement of Revenues, Expenses and Changes in Net Assets..................... 25
Statement of Cash Flows............................................................................ 26-27
Fiduciary Funds
Statement of Fiduciary Net Assets.............................................................. 28
Statement of Changes in Fiduciary Net Assets............................................ 29 `
Notes to Financial Statements.............................................................................. 30-61
Required Supplementary Information
Schedule of Revenues,Expenditures and Changes in Fund Balance- _
Budget and Actual - General Fund..................................................................... 62
Notes to Required Supplementary Information..................................................... 63
Schedule of Funding Progress _
Illinois Municipal Retirement Fund.................................................................. 64
Sheriff s Law Enforcement Personnel.............................................................. 65
PolicePension Fund........................................................................................ 66
Firefighters' Pension Fund............................................................................... 67
Schedule of Employer Contributions
Illinois Municipal Retirement Fund.................................................................. 68
Sheriffs Law Enforcement Personnel.............................................................. 69
PolicePension Fund........................................................................................ 70
Firefighters' Pension Fund............................................................................... 71
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
Schedule of Revenues - Budget and Actual - General Fund.................................. 72
Schedule of Expenditures - Budget and Actual - General Fund............................. 73-80
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual- Infrastructure Fund......................................................... 81-82
VILLAGE OF OAK BROOK, ILLINOIS
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION(Continued)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(Continued)
1' NONMAJOR GOVERNMENTAL FUNDS
Combining Balance Sheet.................................................................................... 83
Combining Statement of Revenues,Expenditures and
Changes in Fund Balances.................................................................................. 84
Schedule of Revenues,Expenditures and i
` Changes in Fund Balance- Budget and Actual
Hotel/Motel Tax Fund..................................................................................... 85
MotorFuel Tax Fund...................................................................................... 86
i.
Foreign Fire Insurance Fund............................................................................ 87
PROPRIETARY FUNDS
MAJOR ENTERPRISE FUNDS
Schedule of Revenues, Expenses and Changes in Net Assets-
Budget and Actual -Waterworks System Fund............................................. 88
Schedule of Operating Expenses - Budget and Actual-
WaterworksSystem Fund............................................................................. 89
Schedule of Revenues,Expenses and Changes in Net Assets-
Budget and Actual- Sports Core Fund.......................................................... 90
Schedule of Operating Revenues -Budget and Actual-
SportsCore Fund.......................................................................................... 91
Schedule of Operating Expenses- Budget and Actual -
SportsCore Fund.......................................................................................... 92-93
r INTERNAL SERVICE FUNDS
Combining Statement of Net Assets................................................................ 94
Combining Statement of Revenues, Expenses and
Changes in Net Assets................................................................................... 95
Combining Statement of Cash Flows............................................................... 96-97
.e
Schedule of Revenues, Expenses and
Changes in Net Assets- Budget and Actual
Self-Insurance Fund................................................................................... 98
GarageFund.............................................................................................. 99
Capital Replacement Fund.......................................................................... 100
VILLAGE OF OAK BROOK, ILLINOIS —
TABLE OF CONTENTS (Continued)
Page(s)
FINANCIAL SECTION (Continued)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
(Continued) —
FIDUCIARY FUNDS
PENSION TRUST FUNDS
Combining Statement of Plan Net Assets......................................................... 101
Combining Statement of Changes in Plan Net Assets....................................... 102 —
Schedule of Changes in Plan Net Assets - Budget and Actual
PolicePension Fund................................................................................... 103 _
Firefighters' Pension Fund.......................................................................... 104
LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS
Schedule of General Long-Term Debt...................................................................... 105
STATISTICAL SECTION —
Government-Wide Information
Government-Wide Revenues.................................................................................... 106
Government-Wide Expenses by Function ................................................................. 107
Fund Information —
General Governmental Revenues by Source -
LastTen Fiscal Years............................................................................................. 108
General Governmental Expenditures by Function- —
Last Ten Fiscal Years............................................................................................. 109
Property Tax Levies and Collections -
Last Ten Fiscal Years............................................................................................. 110
Assessed and Estimated Actual Value of Taxable Property -
LastTen Levy Years.............................................................................................. 111
Property Tax Rates - Direct and Overlapping Governments -
LastTen Levy Years.............................................................................................. 112
Schedule of Direct and Overlapping Bonded Debt.................................................... 113
Schedule of Bond Coverage - Waterworks System Bonds -
Last Ten Fiscal Years............................................................................................. 114
Demographic Statistics............................................................................................. 115
Property Value and Construction -
Last Ten Fiscal Years............................................................................................. 116
PrincipalTaxpayers.................................................................................................. 117
Schedule of Insurance in Force................................................................................. 118
Miscellaneous Statistics............................................................................................ 119-120
INTRODUCTORY SECTION
VILLAGE OF OAK BROOK, ILLINOIS
PRINCIPAL OFFICIALS
December 31, 2005
..
Kevin Quinlan, Village President
Linda K. Gonnella,Village Clerk
BOARD OF TRUSTEES
Stelios Aktipis Kathryn F. Manofsky
` John W. Craig Robert G. Sanford
Jeffrey J. Kennedy Asif Yusif
L VILLAGE MANAGER
Richard B. Boehm, Village Manager
FINANCE DEPARTMENT
Darrell J. Langlois, Finance Director/Treasurer
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VILLAGE OF OAK BROOK
ORGANIZATIONAL CHART
December 31, 2005
Residents of Oak Brook
Village Cierk jj Village President and Board of Trustees
'I
Village Manager Village As tt�yBoards and C�ssions
Assistant Finance Public Works Community Information Engineering Library
Police Chief I�ire Chief
Village Director Director Development Services& Director Director
Manager Director Purchasing
Director
Golf Bath&Tennis
-�—�� Manager Manager
Communications
Supervisor
- 11
i I
Certificate of
Achievement
- for Excellence
in Financial
Reporting
Presented to
Village of Daly. Brook,
Illinois
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
_ December 31, 2004
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.
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Village of President and Board of Trustees
)ak Brook Village of Oak Brook
'' 200 Oak Brook Road Oak Brook, Illinois 60523
9-k Brook,IL 60523-2255
Website
�www.oak-brook.org
The Comprehensive Annual Financial Report (CAFR) of the Village of Oak
Administration Brook for the year ended December 31, 2005 is submitted herewith.
630.990.3000
FAX 6300.300876 Responsibility for both the accuracy of the information presented and the
thoroughness and fairness of the presentation, including all disclosures, rests with
Community the Village. I believe the data, as presented, is accurate in all material respects;
Development that it is presented in a manner designed to fairly set forth the financial position
FAX
6300.3045 and results of operations of the Village as measured b the financial activity of its
FAX 630.990.3985 P g Y y
various fiends and activities; and that all disclosures necessary to enable the reader
Engineering to gain the maximum understanding of the Village's financial affairs have been
Department
included.
630.990.3010
L FAX 630.990.3985
I am pleased to report that the certified public accounting firm of Sikich, LLP has
Fire Department issued an unqualified opinion on the Village's financial statements for the year
630.990.3040 ended December 31, 2005. The independent auditor's report is located at the
FAX 630.990.2392
front section of the CAFR.
Police Department
630.990.2358 The CAFR presents the management's discussion and analysis (MD&A), basic
FAX 630.990.7484 financial statements and required supplementary information. The MD&A, which
Public Works immediately follows the independent auditor's report, provides a narrative
Department
introduction, overview, and analysis of the basic financial statements. The
630.990.3044 MD&A complements this letter of transmittal and should be read in conjunction
FAX 630.472.0223 with it. Included in the basic financial statements are the goverlunent-wide
financial statements, fiend financial statements and notes to the financial
Oak Brook statements. The required supplementary information presents the budgetary
Public Library comparison schedules and other schedules.
L600 Oak Brook Road
k Brook,IL 60523-2200 This report includes all funds and activities of the Village. Generally accepted
630.990.2222 accounting principles require that the financial reporting entity include (1) the
FAX 630.990.4509 primary government, (2) organizations for which the primary government is
"kk Brook Sports Core financially accountable, and (3) other organizations for which the nature and
significance of their relationship with the primary government are such that
Bath&Tennis Club exclusion would cause the reporting entity's financial statements to be misleading
%-700 Oak Brook Road or incomplete. Based upon these criteria, there are no agencies or entities whose
Oak Brook,IL 60523-4600 financial data should be combined with and included in the basic financial
630.990.3020 statements of the Village.
LFAX 630.990.1002
Golf Club
L2606 York Road
ek Brook,IL 60523-4602
630.990.3032
FAX 630.990.0245
IV
Profile of the Village of Oak Brook
T The Village of Oak Brook is located approximately 15 miles west of the Chicago Loop, near the
geographic center of the seven-county Chicago metropolitan area. Excellent transportation links
are provided to all parts of the greater metropolitan area by a network of tollways and federal and
state highways which pass through or near the Village. The Tri-State Tollway (I-294), running
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along the Village's eastern boundary,provides rapid access to the northern and southern suburbs,
and into Wisconsin and Indiana. The East-West Tollway (I-88), passing through the Village's
northern sector, joins the Eisenhower Expressway to the northeast, providing direct access to
Chicago's Loop. Additional links include east-west arteries Illinois Route 38 and U.S. Route 34,
which pass, respectively, to the north and south of the Village, and Illinois Route 83, which
bisects the community in a north-south direction. The Oak Brook area is generally bounded on
the north by the communities of Lombard, Villa Park, Elmhurst and Oakbrook Terrace and on
the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale.
Oak Brook is a community that has demonstrated a high degree of economic stability. While the
Illinois unemployment rate is approximately 5.7%, Du Page County has established an
unemployment rate of 4.7%, significantly Iower than the norm. According to the 2000 Census,
over 80% of the households in Oak Brook are two or more persons, and over 74% of the
occupants of the Village have resided in the same home in Oak Brook for over 5 years,
indicating a strong level of population stability. Per capita income of Village residents in 2000
was $76,668 and the mean family income was $187,961. The Census also indicates that
managerial, professional, and sales occupations are held by 88% of Village residents employed.
The Village of Oak Brook operates under the Village form of government with an elected
Village President and six (6) Trustees. Operational management is provided by a professional
manager appointed by the Board of Trustees. The Village provides a wide range of services
including police protection, fire protection, recreation facilities, a free public library, water
supply, storm water collection, public works operations, road maintenance, building and
inspection services, and general administrative services.
The annual budget is the primary guiding document for the Village's financial planning and
control. Budgetary control is maintained through a system of monthly revenue and
expenditure/expense versus budget accounting reports which are provided to all Trustees and
department heads. All disbursements receive approval of the Board of Trustees. Total
expenditures in any fund are legally restricted to the total amount budgeted, which is not changed
without supplemental ordinance approval. The budget is monitored at the subfunction level by
the encumbrance of estimated purchase amounts prior to the release of purchase orders to
-� vendors.
Local Economy and Finances
The Village of Oak Brook has been and continues to be one of the preeminent business centers in
the Chicago metropolitan area. Several Fortune 500 companies have facilities in the Village,
including the corporate headquarters of McDonald's Corporation. As a retail center, Oak Brook
offers upscale shopping, fine restaurants, and Oakbrook Center, one of the leading outdoor
shopping centers in the United States. These factors, as well as the performance of the Illinois
v
economy over time, have enabled the Village to operate without a real estate tax since inception
due to the sales taxes generated from retail business activities. —
With sales taxes being the largest source of revenue, the local and national economy has a
significant effect on the amount of revenue the Village receives. Like most other communities,
since the late 1990's through 2003 Oak Brook had experienced flat to declining sales tax
revenue. In addition to the regional and national trends, Oak Brook has experienced the
relocation of several significant sales tax payers to other local and out-of-state locations. This
has resulted in revenue declines in excess of the national averages and has caused many
challenges in funding the cost of government services.
In order to find a permanent solution to this problem, the Village Board asked the voters to
authorize the imposition of a non-home rules sales tax of 0.25% at the March, 2004 primary
election. An overwhelming majority (74%) voted in favor of the proposal. Thus, the Village
began recognizing revenue from this new revenue source on July 1, 2004 and in 2005 the Village
recognized $2.4 million of additional revenue from the new tax. By statute the use of the new
tax is restricted to public works expenditures and infrastructure projects. This allows existing �-
revenue sources used for those purposes (primarily utility taxes) for use on other governmental
functions and should provide a long-term solution for funding governmental activities.
During 2005 the Village approved a redevelopment agreement with a developer to add a
significant retail center in the Butterfield-Meyers Road area that will have a positive effect on
sales tax revenue in the future. This project is being assisted with tax increment financing(T.I.F) —
using both the incremental real estate taxes as well as 20% of the incremental sales taxes within
the project area. Once the project is completed (likely in 2007), it is expected that the Village
will receive in excess of$600,000 annually in additional sales tax revenue.
Long-term Financial Planning
The Village uses a number of processes to accomplish financial planning which are outlined as
follows:
Goals and Objectives-this is an annual process in which the Village Board and staff express
specific results to be accomplished. Typically, objectives relate to a specific task or project or to
a change in methods or operations designed to achieve the stated objective.
Roadway Maintenance Pian-this plan is based on the Village's pavement management database
and on a visual inspection of every public street segment in the Village. The Plan, which is "
updated annually, includes a long-range schedule of roadway maintenance activities as well as
cost projections over the next ten year period in order to plan for the orderly maintenance of the
Village's roadway system.
Five-Year Financial Plan-this document is prepared annually in order to provide the Village
Board and the community with a five year projection of the financial condition of each of the
twelve funds that comprise the Village's financial structure. This document is not as precise as
the annual budget but it does project both revenues and expenditures for each of the next five
years. _
vi
Annual Budget-using the information gathered through the goals and objectives process,
roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared.
The budget is structured according to cost centers (called "programs") and sets the spending plan
for the coming year.
The framework of all of the Village's financial planning is centered on the Village Board's well
publicized policy of maintaining a cash and investment reserve in the General Fund that meets or
exceeds-six months of annual operating expenses. The six month policy level, which is higher
than many other municipalities, was established due to the Village not having the predictability
of real estate tax revenue and the fact that most of its general revenues that are collected by the
State (sales and telecommunications taxes) have a three month delay. This conservative policy
ensures that the Village will have sufficient finds on hand to operate in an emergency situation
as well having sufficient time to address any economic downturns. As of December 31, 2005,
the cash and investment balance in the General Fund was equal to approximately 7.1 months of
2005 budgeted operating expenses.
Major Initiatives
In 2005, the Village completed the 2005 paving program, purchased several replacement
vehicles including a new ambulance and a new street sweeper, began the design to screen the
HVAC units at the Library as well as Butler Government Center, completed the construction of
two significant safety pathway projects, and completed the 2005 water main project.
Included in the 2006 budget is the 2006 paving project, upgrade of the Village's telephone
system, computer hardware and software upgrades, outlays to study and enhance beautification
within the Village, fence installation at the Sports Core, pond bank stabilization at the Golf Club,
several water main projects, painting of the elevated water storage tanks, numerous municipal
building improvements including installation of HVAC screening at the Library and Butler
Government Center, landscaping improvements at the Library, safety pathway improvements
projects, and a study to revitalize the 22"d Street corridor.
In later years, the Five-Year Financial Plan includes continuation of the annual paving program,
improvements to the Village's safety pathway system, replacement of the roof at the Public
Works facility, exterior and structural repairs at Old Butler School, replacement of the Village's
accounting and Sports Core software packages, replacement of the street light cable on 22"d
Street, significant maintenance expenses for Reservoir B, and improvements to the ponds and
driving range at the Golf Club.
Awards and Acknowledgements
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 year ended December 31,
2004.
vii
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. The Village has successfully
obtained the Certificate of Achievement for 28 consecutive years. We believe that our current
Report conforms to Certificate of Achievement Program requirements, and we are submitting it
to GFOA to determine its eligibility for another Certificate.
The preparation of this report could not be accomplished without the efficient and dedicated
services of the entire Finance Department 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.
Darrell J. L iglois
Finance Director/Treasurer
i
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FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
Certified Public Accountants & Advisors
Members of American Institute of
OSikich -- Certified Public Accountants &
Professional Services&Support Illinois CPA Society
998 Corporate Boulevard •Aurora, IL 60502
I
i
INDEPENDENT AUDITOR'S REPORT
The Honorable President
Members of the Board of Trustees
Village of Oak Brook
Oak Brook, Illinois
We have audited the basic financial statements of the Village of Oak Brook, Illinois as of and for
the year ended December 31,2005, as listed in the accompanying table of contents. These basic
financial statements are the responsibility of the Village of Oak Brook, Illinois' management. Our
responsibility is to express an opinion on these basic financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the basic 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 basic financial statements referred to above,present fairly, in all material
respects,the financial position of the Village of Oak Brook, Illinois as of December 31, 2005, and
the results of its operations and cash flows of its proprietary funds for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken
as a whole. The accompanying financial information listed as combining and 'individual fund
financial statements and schedules in the table of contents is presented for purposes of additional
%W analysis and is not a required part of the basic financial statements of the Village of Oak Brook,
Illinois. The information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
- 1 -
The Management's Discussion and Analysis and the other required supplementary information
listed in the table of contents are not a required part of the basic financial statements but are
supplementary information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the supplementary information.
However,we did not audit the information and express no opinion on it.
The information contained in the introductory and statistical sections has not been subjected to
the auditing procedures applied in the audit of the basic financial statements, and, accordingly,
we express no opinion thereon.
Q—?
Aurora,
Aurora, Illinois
March 10, 2006
- 2 -
GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS
! VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31,2005
As the management of the Village of Oak Brook (the "Village"), we offer readers of the
Village's financial statements this narrative overview and analysis of the financial activities of
the Village for the fiscal year ended December 31, 2005. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished in
the Transmittal Letter (beginning on page iv) and the Village's Financial Statements (beginning
on page 17).
_ This discussion and analysis is designed to (1) assist the reader in focusing on significant
financial issues, (2) provide an overview of the Village's financial activity, (3) identify changes
in the Village's financial position(its ability to address the next and subsequent year challenges),
(4) identify any material deviations from the financial plan (the approved budget), and (5)
identify individual fund issues or concerns.
USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL REPORT
Historically, the primary focus of local government financial statements has been summarized
fund type information on a current financial resource basis. Due to the requirements of
Government Accounting Standards Board Statement No. 34, beginning in 2003 this approach
was modified so that now the Village's financial statements present two kinds of statements,
each with a different snapshot of the Village's finances. The focus of the new financial
statements is on both the Village as a whole (government-wide) and on the major individual
funds. Both perspectives (government-wide and major fund) allow the user to address relevant
questions, broaden a basis for comparison (year to year or government to government) and
enhance the Village's accountability.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the Village's finances, in a manner similar to a private-sector business. The focus of
the Statement of Net Assets presents information on all of the Village's assets and liabilities,
with the difference between the two reported as net assets. This statement combines and
consolidates governmental fund's current financial resources (short-term spendable resources)
with capital assets and long-term obligations using the accrual basis of accounting and economic
resources measurement focus. Over time, increases or decreases in net assets may serve as a
useful indicator of whether the financial position of the Village is improving or deteriorating.
The Statement of Activities presents information showing how the government's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of the cash flows.
(See independent auditor's report)
- 3 -
VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., earned but unused compensated absences).
Both of the government-wide financial statements (see pages 17-19) distinguish functions of the
Village that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of the
Village reflect the Village's basic services, including administration, police, fire and emergency
medical services, engineering, public works, library, and community development. The
business-type activities of the Village, which are based on a fee for service designed to cover all
or most of the cost of operation, include the waterworks system and operations of the Oak Brook
Sports Core.
Fund Financial Statements
Traditional users of governmental financial statements will find the Fund Financial Statements
to be more familiar. The focus of the presentation is on major funds rather than fund types. A
fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Village, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Village can be divided into three categories:
governmental funds,proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as balances
of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar •.
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund ...
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Village maintains 5 individual governmental funds. Information is presented separately in
the governmental fund balance sheet and statement of revenues, expenditures, and changes in
fund balances for the General Fund and Infrastructure Fund, both of which are considered to be
"major" funds. Data from the other 3 governmental funds are combined into a single, aggregate
presentation. Individual fund data for each of these nonmajor governmental funds is provided in
the form of combining statements elsewhere in this report.
(See independent auditor's report)
-4-
VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
The Village adopts an annual budget for each of its governmental funds. A budgetary
'— comparison statement has been provided elsewhere in this report to demonstrate compliance with
the budget. The basic governmental fund financial statements can be found on pages 20 through
23 of this report.
Proprietary Funds. The Village maintains two different types of proprietary funds: enterprise
funds and internal service funds. Enterprise funds are used to report the same functions
�- presented as business-type activities in the government-wide financial statements. The Village
uses enterprise funds to account for its waterworks system and the operations of the Oak Brook
Sports Core. Internal service funds are an accounting device used to accumulate and allocate
�•. costs internally among the Village's various functions. The Village uses internal service funds to
account for the costs of health and dental insurance, garage operations, and the advance funding
of equipment replacement. Because the Village's costs for these items relate to both
ti.. governmental and business-type functions, the costs have been allocated to each type of activity
where appropriate.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Waterworks System and the Oak Brook Sports Core, both of which are
considered to be major funds of the Village. Conversely,the internal service funds are combined
into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the internal service funds is provided in the form of combining statements
elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 24 through 27 of this
report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside of the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the
Village's own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the
` Firefighters' Pension Fund.
The basic fiduciary fund financial statements can be found on pages 28 through 29 of this report.
Infrastructure Assets
Prior to 2003, the Village's largest group of assets (infrastructure assets- roads, bridges, storm
sewers, etc.) were not reported nor depreciated in governmental financial statements. GASB
Statement No. 34, which was implemented in 2003, requires that these assets be valued and
reported within the Governmental column of the Government-wide Statements. Additionally, the
'�- Village must elect to (1) depreciate the assets over their estimated useful life or (2) develop a
system of asset management designed to maintain the service delivery potential to near
perpetuity (modified approach). The Village has chosen to depreciate assets over their useful
life. If a road project is considered maintenance-a recurring cost that does not extend the original
(See independent auditor's report)
- 5 -
VILLAGE OF OAK BROOK,ILLINOIS W.
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
useful life or expand its capacity-the cost of the project will be expensed. An"overlay" of a road
will be considered maintenance whereas a"rebuild" of a road will be capitalized.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial
statements can be found on pages 30 through 61 of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the Village's progress in funding its
obligation to provide benefits to its employees. Required supplementary information can be
found on pages 62 through 71 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds,
nonmajor enterprise funds, and internal service funds are presented immediately following the
required supplementary information on pensions. Combining and individual fund statements and
schedules can be found on pages 72 through 104 of this report.
i
Financial Analysis of the Village as a Whole
Beyond presenting current year financial information in the government-wide and major
individual fund formats, the Village also presents comparative information from the prior year in
the Management's Discussion and Analysis. By doing so, the Village is providing an additional
means of analyzing its financial condition and financial position as of December 31, 2005.
(See independent auditor's report)
- 6-
VILLAGE OF OAK BROOK, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
GOVERNMENT-WIDE STATEMENTS
Net Assets
The following table reflects the condensed Statement of Net Assets for 2005 and 2004.
Table 1
Statement of Net Assets
As of December 31, 2005 and 2004
(in millions)
Governmental Business-Type Total Primary
Activities Activities Government
2005 2004 2005 2004 2005 2004
Current and Other Assets $ 20.4 $ 20.0 $ 4.7 $ 3.0 $ 25.1 $ 23.0
Capital Assets 66.3 65.0 24.8 25.2 91.1 90.2
Total Assets 86.7 85.0 29.5 28.2 116.2 113.2
Long-Term Liabilities 3.8 3.1 1.2 1.3 5.0 4.4
Other Liabilities 2.8 3.5 0.5 0.4 3.3 3.9
Total Liabilities 6.6 6.6 1.7 1.7 8.3 8.3
Net Assets:
Invested in Capital Assets,
Net of Debt 63.3 61.8 23.8 24.0 87.1 85.8
Restricted 0.6 0.8 0.6 0.8
Unrestricted 16.2 15.8 4.0 2.5 20.2 18.3
Total Net Assets $ 80.1 $ 78.4 $ 27.8 $ 26.5 $ 107.9 $ 104.9
The Village's combined net assets increased by $3.0 million from $104.9 to $107.9 million
_ during 2005. Of this $3.0 million increase, $1.7 million is attributable to governmental activities
and $1.3 million is related to business-type activities. The increase in the net assets of
governmental activities is due to receipt of a full year of collections from the non-home rule sales
tax that was implemented effective July 1, 2004 in 2005 and recognition of grant revenue for the
construction of two safety pathway projects. The increase in the net assets for business-type
activities is due to operating income of$0.2 million and gain on the sale of capital assets of$1.1
million resulting from sale of the two remaining residential lots in the Westchester Park
subdivision.
For more detailed information, see the Statement of Net Assets on page 17.
(See independent auditor's report)
- 7 -
VILLAGE OF OAK BROOK, ILLINOIS _
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Activities
The following table summarizes the revenue and expenses of the Village's activities for 2005 _
and 2004:
Table 2 _
Changes in Net Assets
For the Fiscal Year Ended December 31, 2005 and 2004
(in millions)
Governmental Business-Type Total Primary
Activities Activities Government
2005 2004 2005 2004 2005 2004
REVENUES
Program Revenues:
Charges for Services $ 2.0 $ 2.1 $ 7.9 $ 7.3 $ 9.9 $ 9.4
Grants and Contributions 2.8 0.4 2.8 0.4
General Revenues:
Sales and Local Use Taxes 13.0 11.9 13.0 11.9
Utility Taxes 4.3 4.3 4.3 4.3
Other Taxes 1.6 1.1 1.6 1.1 -
Gain on Sale of Capital Assets 1.1 1.1
Other - 0.1 0.1 0.1 0.1 0.2
Total Revenues 23.7 19.9 9.1 7.4 32.8 27.3 _
EXPENSES
General Government 4.3 4.5 4.3 4.5 _
Public Safety 11.3 10.1 11.3 10.1
Public Works 4.6 3.7 4.6 3.7
Culture and Recreation 1.7 1.7 1.7 1.7 _
Waterworks System 4.3 4.3 4.3 4.3
Sports Core 3.5 3.4 3.5 3.4
Interest on Long-Term Debt 0.1 0.2 0.1 0.2
Total Expenses 22.0 20.2 7.8 7.7 29.8 27.9
Change in Net Assets $ 1.7 $ (0.3) $ 1.3 $ (0.3) $ 3.0 $ (0.6)
Total Net Assets $ 80.1 $ 78.4 $27.8 $26.5 $ 107.9 $ 104.9
(See independent auditor's report)
- 8 -
VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
w
2005 Revenues By Source
Other
4.5% '
Other Charges for Services
Taxes 30.1%
..'
4.1%
Utility Taxes
13.0%
Grants and
Contributions
Sales and Use Taxes 8.6%
39.7%
2005 Expenses by Function
�- Sports Core General
11.6% Government
_ Waterworks 15.0%
System
14.5%
Culture &
Recreation
5.8%
Public Safety
Public Works 37.8%
15.3%
(See independent auditor's report)
- 9 -
VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
There are eight basic impacts on revenues and expenses as reflected below:
Normal Impacts
Revenues
Economic condition- this can reflect a declining, stable, or growing economic environment and
has a substantial impact on state income, sales, and utility tax revenue as well as public spending
habits for building permits, elective user fees, and consumption volumes.
Increase/Decrease in Village approved rates- while certain tax rates are set by statute, the
Village Board has significant authority to impose and periodically increase or decrease rates
(water fees, utility tax rates,permit fees, etc.)
—
Changing patterns in intergovernmental and grant revenue (both recurring and non-
recurring- certain recurring revenues (state shared revenues, etc.) may experience significant
changes periodically while non-recurring or one-time grants are less predictable and often distort
their impact on year-to-year comparisons.
Market impacts on investment income- the Village's investment portfolio is managed using a
similar average maturity to most other governments. Market conditions may cause investment
income to fluctuate.
Expenses
Introduction of new programs- within functional expense categories, individual programs may
be added or deleted in order to meet the changing needs of the Village.
Changes in authorized personnel- changes in service demand may cause the Village Board to
change staffing levels. Personnel costs are the Village's most significant operating costs.
Salary increases (annual adjustments and merit) - the ability to attract and retain quality
personnel requires the Village to strive to have competitive salary ranges and pay practices.
Inflation-while overall inflation has been reasonably modest, the Village is a major consumer of
certain commodities such as supplies, fuels and parts. Some functions may experience unusual
commodity specific increases. ..
Current Year Impacts
Revenues
For the fiscal year ended December 31, 2005, revenues totaled $32.8 million, an increase of$5.5
million from 2004. Revenues from sales and use taxes, the Village's largest single revenue
source, amounted to more than $13.0 million or 39.7% of total revenue, an increase of $1.1 ..
million from 2004. Most of this increase is due to recognition of a full year of revenue from the
non-home rule sales tax of 0.25% that was implemented on July, 2004 (only six months of
revenue was included in 2004). •.
(See independent auditor's report)
- 10 -
VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
-- Utility taxes, which includes the taxes imposed on electric, natural gas, and telecommunications
services, were $4.3 million or 13.0% of total revenues. Although the total revenue from this
source is virtually unchanged from the 2004 amount, the taxes imposed on electric and natural
gas have increased and receipts from the telecommunication tax continue to decline due to the
high level of competition in the telecommunications industry.
�. The "other taxes" classification includes a number of different revenue sources including income
taxes, personal property replacement taxes, foreign fire insurance taxes, and hotel taxes. For
2005, these revenues were $1.6 million or 4.1% of total revenues, which is an increase of$0.5
million from 2004. State shared revenues from income tax and personal property replacement
taxes have increased due to the improved Illinois economy. For 2005, grant revenue amounted
to $2.8 million, which is an increase of$2.4 million from 2004. The significant increase is due
to the one-time recognition grant revenue received for the construction of two significant safety
pathway projects completed and placed in service in 2005.
Charges for services, which include revenue from water sales as well as user fees from the Oak
Brook Sports Core,were $9.9 million or 30.1%of total revenue, an increase of$0.5 million from
2004. Water system revenues increased $0.4 million from 2004 levels due to an increase in
_ water sales and Sports Core revenues increased $0.1 million due primarily to increased special
event food and beverage revenue and increased golf fees. Slightly decreased levels of permit and
inspection activities and reduced revenue from Police fines are the primary cause of a decrease
of$0.1 million in charges,for services for governmental activities.
Revenues for 2005 also include a special item resulting from a gain on sale of capital assets of
$1.1 million. In 1998, the voters of Oak Brook authorized by referendum the sale of
approximately 3 acres of surplus real estate, consisting primarily of 3 residential lots, in the
Westchester Park subdivision. One of the lots was sold previously in 2003, and the remaining
two lots were sold in 2005. The Sports Core Fund is the beneficiary of the real estate sale
proceeds.
Expenses
Expenses for the Village of Oak Brook amounted to a total of$29.8 million in 2005, an increase
of$1.9 million from 2004. As required by GASB Statement No. 34, the expense totals include
depreciation expense of $1.7 million for governmental activities and $0.7 million of business-
type activities. Depreciation expense, which includes depreciation on infrastructure, has been
allocated over the most appropriate functional category.
Public safety expenses related to the operations of the Police Department and Fire Department
accounted for $11.3 million or 37.8% of total expenses, an increase of$1.2 million from 2004.
Increased payroll, overtime, and benefit costs, fewer vacant staff positions, and increased vehicle
replacement charges (these costs were only partially funded in 2004) are the significant causes of
the increase. General government expenses were $4.3 million, a decrease of$0.2 million from
2004. The decrease is partially due to inclusion of an expense of$0.1 million in 2004 from the
(See independent auditor's report)
*- - 11 -
VILLAGE OF OAK BROOK,ILLINOIS _
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
recognition of the settlement liability for litigation surrounding the Infrastructure Maintenance �.
Fee (IMF), which was imposed by the Village from 1998 to 2000 (see page 53 for a further
explanation). Public works expenses were $4.6 million, an increase of$0.9 million from 2004.
Most of this change was due to an increased roadway maintenance program as compared to
2004. Culture and recreation expenses were $1.7 million, which is essentially unchanged from
2004.
For business-type activities, expenses for the waterworks system were $4.3 million or 14.5% of
total expenses,which is unchanged from 2004. For the Sports Core, expenses were $3.5 million,
an increase of $0.1 million from 2004. The increase is due to corresponding increases in
business levels.
FINANCIAL ANALYSIS OF THE VILLAGES FUNDS
Governmental Funds
As noted earlier, the Village of Oak Brook uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. As of December 31, 2005, the
governmental funds (as presented on the balance sheet on page 20) had a combined fund balance
of$15.2 million. This reflects a combined increase of$0.1 million over the prior year and is due
to an increase of$1.7 million in the General Fund, a decrease of$1.3 million in the Infrastructure
Fund and a reduction of$0.3 million in other governmental funds. -•
Prior to July 1, 2004, the Village used a portion of utility tax revenue to support the
Infrastructure Fund. With the implementation of the 0.25% non-home rule sales, which is
restricted by law for infrastructure purposes,the new sales tax is now the primary revenue source
for the Infrastructure Fund. During 2005, the Village elected to transfer $1.0 million of
unrestricted fund balance in the Infrastructure Fund that accumulated before the new tax to the ..
General Fund in order to increase cash reserves. The remaining fund balance increase of$0.7
million in the General Fund is due to shifting the Infrastructure Fund share of utility taxes to the
General Fund in 2005. The decrease in other governmental funds is due to utilizing Motor Fuel
Tax funds to partially fund the 2005 roadway maintenance program.
Proprietary Funds ..
Net assets for the Village's two business-type activities increased $1.3 million from 2004 (see
pages 24 and 25). Increased water sales accounted for $0.2 million of the increase and the gain
on sale of capital assets, which arose due to the sale of two residential lots in the Westchester
Park subdivision, accounted for $1.1 million of the increase. It is important to note, however,
that in 2004 and 2005 there were several initiatives done at the Sports Core designed to improve _
profitability such as reductions in payroll costs, lowering Bath and Tennis Club membership fees
in hopes of increasing the number of members, and providing incentives through the membership
to have members participate in more food and beverage events. Due primarily to these
initiatives, an operating loss of$125,456 in 2003 improved to having operating income of$2,940
in 2004 and operating income of$8,590 in 2005.
(See independent auditor's report)
- 12-
VILLAGE OF OAK BROOK, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
In 2003, the Village Board policy was to require budget transfers when an individual program or
fund exceeds its budget in total. In addition to these program transfers, beginning in 2004 the
Village Board approved an ordinance requiring a budget transfer for any individual line item
account that exceeded its budget by more than 110%. In order to stay in compliance with these
policies, the Village Board amended the original budget on ten occasions during the year. In
addition to these transfers, the original budget in total for the General Fund was increased by
$128,700 in order to budget funds for payment of attorney fees related to a lawsuit.
Table 3
General Fund Budgetary Highlights
For the Fiscal Year Ended December 31, 2005
(in millions)
Original Amended
Budget Budget Actual
REVENUES AND TRANSFERS
Intergovernmental $ 11,632,000 $ 11,632,000 $ 11,593,921
Utility Taxes 4,419,000 4,419,000 4,268,283
Licenses&Permits 630,465 630,465 669,726
Charges for Services 635,400 635,400 791,638
Other 717,000 717,000 754,821
Transfer from Infrastructure Fund 1,000,000 1,000,000 1,000,000
Total Revenues and Transfers 19,033,865 19,033,865 19,078,389
EXPENDITURES
General Government 4,942,680 4,915,060 4,445,473
Public Safety 10,952,685 11,109,005 11,095,778
Public Works 804,175 804,175 610,722
Culture and Recreation 1,242,780 1,242,780 1,225,331
Total Expenditures and Transfers 17,942,320 18,071,020 17,377,304
Change in Fund Balance $ 1,091,545 $ 962,845 $ 1,701,085
Intergovernmental revenues were under budget due to actual sales tax revenue slightly
underperforming the budgetary projections. Utility tax revenue was under budget due to declines
in the amount of telecommunications taxes that the Village receives. Licenses and permits as
well as charges for services were over budget due to increased activity in these areas. Other
income was over budget due to higher market interest rates resulting from numerous increases in
short-term rates by the Federal Reserve.
(See independent auditor's report)
- 13 -
VILLAGE OF OAK BROOK,ILLINOIS _
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Actual expenditures were 96.85% of the original budget and 96.16% of the revised budget.
None of the variances underlying these totals are individually significant.
Capital Assets
The following schedule reflects the Village's capital asset balances as of December 31, 2005 and
2004.
Table 4
Capital Assets -
As of December 31, 2005 and 2004
(in millions)
Governmental Business-Type
Activities Activities Total
2005 2004 2005 2004 2005 2004
Land and Land Right of Way $ 32.3 $ 32.3 $ 8.3 $ 8.3 $ 40.6 $ 40.6 _
Buildings and Land Improvements 18.7 18.7 8.5 8.5 27.2 27.2
Machinery, Vehicles, and Equipment 7.1 6.9 5.1 4.8 12.2 11.7
Infrastructure 32.2 29.3 15.5 15.4 47.7 44.7 _
Construction in Progress - 0.6 0.1 0.2 0.1 0.8
90.3 87.8 37.5 37.2 127.8 125.0
Less: -
Accumulated Depreciation (24.0) (22.8) 12.7) (12.0) 36.7) (34.8)
Total $ 66.3 $ 65.0 $ 24.8 $ 25.2 $ 91.1 $ 90.2
At year-end, the Village's investment in capital assets (net of accumulated depreciation) for both
its governmental and business-type activities was $91.1 million, an increase of$0.9 million from
2005 (see Note 5 in the Notes to the Financial Statements for further information regarding
capital assets). Major capital asset events during 2005 included the following:
• Six Police vehicles, one ambulance, and one street sweeper totaling $0.5 million were
purchased for use in governmental activities.
• A replacement water main, a new golf cart fleet, and four golf maintenance equipment items
were replaced in 2005, adding $0.6 million to the capital assets of business-type activities.
• Two safety pathway construction projects and road and drainage improvements in the Robin
Hood Ranch subdivision added $2.9 million of infrastructure assets for use in governmental
activities
(See independent auditor's report)
- 14 -
VILLAGE OF OAK BROOK,ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
-- Long-Term Debt
As a non-home rule community, the Village's legal general obligation debt limit is 8.625 percent
of equalized assessed valuation (EAV), or $122,938,821 based on January 1, 2004 EAV of
�- $1,425,377,638. As of December 31, 2005, the Village has $4,015,000 of debt outstanding
attributed to three installment contracts that is applicable to the legal limit (see Note 7 in the
Notes to the Financial Statements for details of each issue). The table below summarizes the ,
Village's outstanding long-term debt:
�. Table 5
Long-term Debt
As of December 31, 2005
Governmental Business-Type
Activities Activities Total
General Fund Certificates:
Series 1999 $ - $ 370,000 $ 370,000
Series 2001 2,970,000 2,970,000
Series 2003 (Refunding) 675,000 675,000
Total $ 2,970,000 $ 1,045,000 $ 4,015,000
The General Fund Certificates are general obligations of the Village but are not secured by a
pledge of property taxes. With respect to the 1999 and 2003 series certificates, the Village
intends to use Sports Core Fund revenues to pay the annual debt service. Thus,these obligations
have been included with business-type activities. Both the General Fund Certificates, Series
1999 and General Fund Certificates, Series 2001 received a rating of Aa2 from Moody's Investor
Service, Inc.
Economic Factors and Next Year's Budget
Whereas real estate taxes are typically a major source of revenue in most other municipalities,
'- the Village of Oak Brook does not levy a tax on real estate. In addition, since Oak Brook is a
non-home rule community and is subject to the tax cap, this effectively limits the Village's real
estate tax levy at $-0-. Thus, as compared to other municipalities, Oak Brook's revenue stream
is much more dependent on the local and national economy since sales taxes, utility taxes, and
state-shared revenues are the primary sources of income to the Village.
Over the last several years,the state of the economy as well as the relocation of several taxpayers
to other jurisdictions has resulted in significant declines in sales tax revenue. Decreases in
various state-shared revenues have been well documented. In order to offset these declines, the
Village has had to increase the rates of tax of various utility taxes to the state mandated
(See independent auditor's report)
- 15 -
VILLAGE OF OAK BROOK,ILLINOIS _
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
maximum rates of 5% on electric and natural gas service and to 5% (1% below the maximum
rate) on telecommunications taxes. Despite these rate increases the Village has still struggled to
fund the ever-increasing cost of government with its existing revenue streams. In order to find a _
permanent solution to the revenue situation, the Village Board asked the voters to authorize the
imposition of a non-home rules sales tax of 0.25% at the March, 2004 primary election. An
overwhelming majority of voters (74%) voted in favor of the proposal.
Imposition of the new non-home rule sales tax began on July 1, 2004 and the Village began
receiving payments in October, 2004. For 2005 the Village recognized $2.4 million of revenue
from this tax. By statute the use of the new tax is restricted to public works expenditures and
infrastructure projects. This has allowed the Village to free up existing revenue sources used for
those purposes (primarily utility taxes) for use on other governmental functions and should
provide a long-term solution for funding governmental activities.
As noted on Page 53, during 2005 the Village approved a redevelopment agreement with a
developer whereby the Village has agreed to reimburse the developer for certain costs associated
with the redevelopment project area within the tax increment financing (TIF) #1 Butterfield-
Meyers Road Redevelopment Project Area. The reimbursement would be in the form of a note
payable from the incremental real estate taxes and 20% of the incremental sales taxes within the
project area. Once the project is completed (likely in 2007), it is expected that the Village will
receive in excess of$600,000 annually in additional sales tax revenue.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors and creditors with a
general overview of the Village's finances and to demonstrate accountability for the money it
receives. Questions concerning this report or requests for additional financial information should
be directed to Darrell J. Langlois, Finance DirectorNillage Treasurer, Village of Oak Brook, ..
1200 Oak Brook Road, Oak Brook, IL 60523.
(See independent auditor's report)
- 16-
6.
VILLAGE OF OAK BROOK,ILLINOIS
6- STATEMENT OF NET ASSETS
December 31,2005
Governmental Business-Type
Activities Activities Total
ASSETS
6" Cash and investments $ 14,258,581 $ 4,032,967 $ 18,291,548
Receivables(net of allowances
for uncollectibles)
Sales taxes 3,412,465 - 3,412,465
Utility taxes 887,257 - 887,257
Accounts 105,261 - 105,261
Billed and unbilled water sales - 375,638 375,638
Allotments 20,946 - 20,946
Accrued interest 12,741 4,172 16,913
Other 433,699 104,517 538,216
Advances to(from)other funds 1,290,000 (1,290,000) -
Inventories 47,040 177,281 224,321
_ Water purchase rights - 1,262,433 1,262,433
Capital assets
Non-depreciable 32,304,134 8,414,051 408,185
Depreciable,net of accumulated depreciation 33,952,745 16,432,891 50,3 5,636
Total assets 86,724,869 29,513,950 116,238,819
LIABILITIES
Accounts payable 638,917 282,633 921,550
Accrued payroll 508,374 80,001 588,375
Accrued interest 11,586 6,868 18,454
Claims payable 260,000 - 260,000
Deposits 1,006,311 50,821 1,057,132
_ Deferred revenue 341,370 76,654 418,024
Long-term liabilities
Due within one year 1,027,801 275,469 1,303,270
Due in more than one year 2,836,571 967,378 3,803,949
Total liabilities 6,630,930 1,739,824 8,370.754
NET ASSETS
Invested in capital assets,net of related debt 63,286,879 23,801,942 87,088,821
Restricted for
Maintenance of roadways 248,433 - 248,433
Public safety 121,725 - 121,725
Culture and recreation 239,090 - 239,090
Unrestricted 16,197,812 3.972.184 20,169,996
TOTAL NET ASSETS $ 80,093,939 S 27,774,126 S 107.868,065
`- See accompanying notes to financial statements.
- 17 -
VILLAGE OF OAK BROOK,ILLINOIS
STATEMENT OF ACTIVITIES
For the Year Ended December 31,2005 —
Program Revenues
FUNCTIONS/PROGRAMS Charges Operating Capital
PRIMARY GOVERNMENT Expenses for Services Grants Grants
Governmental Activities
General government $ 4,332,956 $ 1,109,456 $ - $
Public safety 11,280,301 814,901 52,289 -
Public works 4,556,585 4,595 253,480 2,516,333
Culture and recreation 1,736,386 29,815 - -
Interest 149,171 - - -
Total governmental activities 22,055,399 1,958,767 305,769 2,516,333
Business-Type Activities
Waterworks System 4,323,909 4,469,187 - - —
Sports Core 3,462,206 3,430,595 - -
Total business-type activities 7,786,115 7,899,782 - -
TOTAL PRIMARY GOVERNMENT $ 29,841,514 $ 9,858,549 $ 305,769 $ 2,516,333
General Revenues
Taxes
Replacement _
Sales,local use
Utility
Hotel/motel _
Income
Other
Investment income
Gain on sale of capital assets _
Miscellaneous
Total
CHANGE IN NET ASSETS
NET ASSETS,JANUARY 1
NET ASSETS,DECEMBER 31
- 18 -
— Net(Expense)Revenue and Change in Net Assets
Primary Government
Governmental Business-Type
— Activities Activities Total
$ (3,223,500) $ - $ (3,223,500)
— (10,413,111) - (10,413,111)
(1,782,177) - (1,782,177)
(1,706,571) - (1,706,571)
(149,171) - (149,171)
(17,274,530) - (17,274,530)
145,278 145,278
(31,611) (31,611)
113,667 113,667
— (17,274,530) 113,667 (17,160,863)
258,242 - 258,242
13,020,272 - 13,020,2721'
— 4,268,283 - 4,268,283
349,615 - 349,615
649,380 - 649,380
86,414 - 86,414
286,859 82,818 369,677
- 1,061,472 1,061,472
— 15,000 - 15,000
18,934,065 1,144,290 20,078,355
1,659,535 1,257,957 2,917,492
78,434,404 26,516,169 104,950,573
$ 80,093,939 $ 27,774,126 $ 107,868,065
See accompanying notes to financial statements.
- 19-
VILLAGE OF OAK BROOK,ILLINOIS
GOVERNMENTAL FUNDS
BALANCE SHEET ..
December 31,2005
Nonmajor ..
Governmental Total
General Infrastructure Funds Governmental
ASSETS
Cash and investments $ 9,663,936 $ 1,326,918 $ 584,429 $ 11,575,283
Receivables ...
Sales taxes 2,675,861 736,604 - 3,412,465
Utility taxes 887,257 - - 887,257
Accounts 105,261 - - 105,261 �•
Allotments - - 20,946 20,946
Accrued interest 9,021 1,430 381 10,832
Other 248,813 65,937 30,490 345,240
Advances to other funds 1,290,000 - - 1,290,000
Inventories 1,561 - - 1,561
TOTAL ASSETS $ 14,881,710 $ 2,130,889 $ 636,246 $ 17,648,845
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 278,578 $ 308,051 $ 26,998 $ 613,627
Accrued payroll 455,341 45,153 - 500,494 ..
Deposits payable 993,047 13,264 - 1,006,311
Deferred revenue 211,679 67,461 - 279,140
..
Total liabilities 1,938,645 433,929 26,998 2,399,572
FUND BALANCES _
Reserved for inventories 1,561 - - 1,561
Reserved for advances 1,290,000 - - 1,290,000
Reserved for maintenance of roadways - - 248,433 248,433
Reserved for public safety - - 121,725 121,725
Reserved for culture and recreation - - 239,090 239,090
Unreserved
Undesignated-General Fund 11,651,504 - - 11,651,504
Undesignated-Capital Projects Fund - 1,696,960 - 1,696,960
1
Total fund balances 12,943,065 1,696,960 609,248 15,249,273
TOTAL LIABILITIES AND
FUND BALANCES $ 14,881,710 $ 2,130,889 $ 636,246 $ 17,648,845
See accompanying notes to financial statements.
-20- ,�
—
VILLAGE OF OAK BROOK, ILLINOIS
RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS
December 31, 2005
FUND BALANCES OF GOVERNMENTAL FUNDS S 15,249,273
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities, excluding the
internal service fund capital assets below, are not financial
resources and, therefore, are not reported in the governmental funds 64,235,391
Interest payable is not due and payable in the current period
and,therefore, is not reported in the governmental funds (11,586)
Long-term liabilities are not due and payable in the current
period and,therefore, are not reported in the
governmental funds:
Installment contracts payable (2,970,000)
Compensated absences payable (883,398)
A portion of the net assets of the internal service funds
_ are included in the governmental activities in the
statement of net assets
Capital assets 2,021,488
Other net assets 2,452,771
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 80,093,939
See accompanying notes to financial statements.
-21 -
X-0
VILLAGE OF OAK BROOK,ILLINOIS mom
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES
For the Year Ended December 31,2005
Nonmajor Total
Governmental Governmental
General Infrastructure Funds Funds
REVENUES
Intergovernmental $ 11,593,921 $ 116,872 $ 299,801 $ 12,010,594
Non-home rule sales tax - 2,422,549 - 2,422,549
Utility taxes 4,268,283 - - 4,268,283
Hotel/motel taxes - - 349,615 349,615
Licenses and permits 669,726 - - 669,726
Charges for services 791 638 - - 791,638
g >
Fines and penalties 334,869 - - 334,869
Investment income 238,612 34,396 13,851 286,859
Donations 15,000 - - 15,000
Miscellaneous 166,340 - - 166,340
Total revenues 18,078,389 2,573,817 663,267 21,315,473
EXPENDITURES
Current
General government 4,445,473 - - 4,445,473
Public safety 11,095,778 - 63,059 11,158,837 _
Public works 610,722 1,871,592 472,501 2,954,815
Culture and recreation 1,225,331 - 369,330 1,594,661
Capital outlay - 1,001,532 - 1,001,532
Total expenditures 17,377,304 2,873,124 904,890 21,155,318
EXCESS(DEFICIENCY)OF REVENUES
OVER EXPENDITURES 701,085 (299,307) (241,623) 160,155
OTHER FINANCING SOURCES(USES) ..
Transfers in(out) 1,000,000 (1,000,000) - -
Total other financing sources(uses) 1,000,000 (1,000,000) - -
NET CHANGE IN FUND BALANCES 1,701,085 (1,299,307) (241,623) 160,155
FUND BALANCES,JANUARY 1 11,241,980 2,996,267 850,871 15,089,118
FUND BALANCES,DECEMBER 31 $ 12,943.065 $ 1,696,960 $ 609,248 $ 15,249,273
See accompanying notes to financial statements.
-22-
VILLAGE OF OAK BROOK, ILLINOIS
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE
GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2005
NET CHANGE IN FUND BALANCES -
TOTAL GOVERNMENTAL FUNDS $ 160,155
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures
however,they are capitalized and depreciated in the
statement of activities 2,513,960
The repayment of long-term debt is reported as an
expenditure when due in governmental funds but as
a reduction of principal outstanding in the statement
of activities 225,000
Some expenses in the statement of activities do not require the
use of current fmancial resources and,therefore, are not
reported as expenditures in governmental funds:
Depreciation, including internal service funds (1,656,381)
"- Loss on disposal of capital assets (11,134)
Change in compensated absences (115,192)
Change in interest payable 867
The change in net assets of certain activities of internal service
funds, excluding depreciation, is included in governmental activities 542,260
L
CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 1,659,535
L
See accompanying notes to financial statements.
-23 -
.r
VILLAGE OF OAK BROOK,ILLINOIS
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
December 31,2005
Business-Type Activities
Waterworks Internal
System Sports Core Total Service
^
CURRENT ASSETS
Cash and investments $ 3,471,896 $ 333,857 $ 3,805,753 $ 2,910,512
Receivables
Billed and unbilled water sales 375,638 - 375,638 - ..,
Accrued interest 2,890 660 3,550 2,531
Other 18,048 86,469 104,517 88,459
Inventories - 177,281 177,281 45,479
Total current assets 3,868,472 598,267 4,466,739 3,046,981
CAPITAL ASSETS
Non-depreciable 337,586 8,076,465 8,414,051 -
Depreciable,net of accumulated depreciation 10,889,341 5,324,077 16,213,418 2,240,962 .�
Total capital assets 11,226,927 13,400,542 24,627,469 2,240,962
NONCURRENT ASSETS ^
Water purchase rights 1,2629433 N/ - 1,262,433 -
Total assets 16,357,832 13,998,809 30,356,641 5,287,943
CURRENT LIABILITIES
Accounts payable 241,072 41,561 282,633 25,291
Accrued payroll 39,204 40,797 80,001 7,880
Accrued interest - 6,868 6,868 - ^
Compensated absences payable 29,962 47,242 77,204 10,974
Deposits - 50,821 50,821 -
Deferred revenue 15,835 60,819 76,654 62,230
Installment contracts payable - 160,000 160,000 - ^
Capital lease payable - 38,265 38,265 -
Claims payable - - - 260,000
Total current liabilities 326,073 446,373 772,446 366,375
LONG-TERM LIABILITIES
Advances from other funds - 1,290,000 1,290,000 -
Installment contract payable 885,000 885,000 - ...
Capital lease payable 82,378 82,378 -
Total long-term liabilities - 2,257,378 2,257,378 -
Total liabilities 326,073 2,703,751 3,029,824 366,375
NET ASSETS
Invested in capital assets,net of related debt 11,226,927 12,234,899 23,461,826 2,240,962
Unrestricted 4,804,832 (939,841) 3,864,991 2,680,606
TOTAL NET ASSETS $ 16,031,759 $ 11,295,058 27,326,817 $ 4,921,568
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds 447,309
$ 27,774,126
See accompanying notes to financial statements.
-24-
VILLAGE OF OAK BROOK,ILLINOIS
PROPRIETARY FUNDS
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS
For the Year Ended December 31,2005
Business-Type Activities
Waterworks Internal
System Sports Core Total Service
OPERATING REVENUES
Charges for services $ 4,469,187 $ 3,430,595 $ 7,899,782 $ 3,409,594
Total operating revenues 4,469,187 3,430,595 7,899,782 3,409,594
OPERATING EXPENSES
Operations 3,880,959 3,120,835 7,001,794 487,560
Claims and insurance - - - 2,440,384
Miscellaneous - - - 2,882
Depreciation and amortization 454,887 301,170 756,057 347,596
Total operating expenses 4,335,846 3,422,005 7,757,851 3,278,422
OPERATING INCOME 133,341 8,590 141,931 131,172
NONOPERATING REVENUES(EXPENSES)
Investment income 76,387 6,431 82,818 71,945
Gain(loss)on sale of capital assets - 1,061,472 1,061,472 38,139
Interest expense - (40,201) (40,201) -
Total nonoperating revenues(expenses) 76,387 1,027,702 1,104,089 110,084
CHANGE IN NET ASSETS 209,728 1,036,292 1,246,020 241,256
NET ASSETS,JANUARY 1 15,822,031 10,258,766 4,680,312
NET ASSETS,DECEMBER 31 $ 16,031,759 $ 11,295,058 $ 4,921,568
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds 11,937
Change in net assets of business-type activities S 1,257,957
See accompanying notes to financial statements.
-25 -
VILLAGE OF OAK BROOK,ILLINOIS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
For the Year Ended December 31,2005
Business-Type Activities
Waterworks Internal
System Sports Core Total Service
CASH FLOWS FROM OPERATING ACTIVITIES _
Receipts from internal services transactions $ - $ - $ - $ 2,605,459
Receipts from customers and users 4,425,466 3,433,114 7,858,580 -
Receipts from miscellaneous revenue 43,240 - 43,240 1,133,046
Payments to suppliers (3,218,618) (1,823,479) (5,042,097) (2,927,618)
Payments to employees (626,705) (1,312,981) (1,939,686) (165,129)
Net cash from operating activities 623,383 296,654 920,037 645,758
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Repayment of interfund loan - (933,352) (933,352)
Net cash from noncapital
financing activities - (933,352) (933,352) - •,
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchase of capital assets (134,302) (192,142) (326,444) (453,484)
Proceeds from sale of capital assets - 1,213,318 1,213,318 37,025
Principal paid on installment contract payable - (160,000) (160,000) -
Principal paid on capital lease payable - (39,671) (39,671)
Interest paid - (41,531) (41,531) -
Net cash from capital and
related financing activities (134,302) 779,974 645,672 (416,459)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments - (109,238) (109,238) (18,451) .•.
Sale of investments 278,838 - 278,838 -
Interest received 78,419 7,060 85,479 73,976
Net cash from investing activities 357,257 (102,178) 255,079 55,525
NET INCREASE IN CASH AND
CASH EQUIVALENTS 846,338 41,098 887,436 284,824 •.
CASH AND CASH EQUIVALENTS,
JANUARY 1 1,414,931 16,480 1,431,411 1,565,498
CASH AND CASH EQUIVALENTS,
DECEMBER 31 $ 2,261,269 $ 57,578 $ 2,318,847 S 1,850,322
(This statement is continued on the following page.)
-26-
VILLAGE OF OAK BROOK,ILLINOIS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS(Continued)
For the Year Ended December 31,2005
Business-Type Activities
Waterworks Internal
System Sports Core Total Service
CASH AND INVESTMENTS
Cash and cash equivalents $ 2,261,269 $ 57,578 $ 2,318,847 $ 1,850,322
Investments 1,210,627 276,279 1,486,906 1,060,190
TOTAL CASH AND INVESTMENTS $ 3,471,896 S 333,857 $ 3,805,753 $ 2,910,512
NONCASH TRANSACTIONS
Capital assets acquired through capital lease $ - $ 160,315 $ 160,315 $ -
Unrealized gain(loss)on investments (3,800) (1,163) (4,963) (3,776)
TOTAL NONCASH TRANSACTIONS $ (3,800) S 159,152 $ 155,352 $ (3,776)
RECONCILIATION OF OPERATING INCOME
TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Operating income $ 133,341 $ 8,590 $ 141,931 S 131,172
-- Depreciation and amortization 454,887 301,170 756,057 347,596
Adjustments to reconcile operating income
to net cash from operating activities
Changes in assets and liabilities
Accounts receivable (480) - (480) 266,681
Other receivable (4,772) (33,628) (38,400) -
Inventories - (7,435) (7,435) (8,118)
Accounts payable 21,353 (10,319) 11,034 13,041
Accrued payroll and compensated absences 14,283 2,129 16,412 156
Claims payable - - - (167,000)
Deposits payable - 24,398 24,398 -
Deferred revenue 4,771 11,749 16,520 62,230
NET CASH FROM OPERATING ACTIVITIES S 623,383 S 296,654 S 920,037 S 645,758
See accompanying notes to financial statements.
-27-
VILLAGE OF OAK BROOK,ILLINOIS
STATEMENT OF FIDUCIARY NET ASSETS
December 31, 2005
ASSETS
Cash $ 749,194
Investments
Illinois Funds 148,928
Certificates of Deposit 98,193 ..
U.S. Treasury Securities 6,117,228
U.S. Agency Securities 15,889,923
State and Local Obligations 1,815,176
Mutual Funds 19,756,449
Accrued interest receivable 236,402
Prepaid items 125
Total assets 44,811,618
LIABILITIES
Accounts payable 5,863
Total liabilities 5,863
NET ASSETS HELD IN TRUST FOR
PENSION BENEFITS $ 44,805,755
See accompanying notes to financial statements.
- 28 -
i
VILLAGE OF OAK BROOK, ILLINOIS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
For the Year Ended December 31, 2005
ADDITIONS
Contributions
Employer contributions $ 987,894
Employee contributions 510,657
Total contributions 1,498,551
Investment income
Net appreciation in
fair value of investments 1,145,368
Interest 1,051,557
Total investment income 2,196,925
Less investment expense (67,368)
Net investment income 2,129,557
Total additions 3,628,108
DEDUCTIONS
Benefits and refunds 2,333,183
Administrative 41,889
Total deductions 2,375,072
NET INCREASE 1,253,036
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 43,552,719
December 31 S 44,805,755
See accompanying notes to financial statements.
- 29 -
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VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Village of Oak Brook, Illinois(the Village)have been
prepared in conformity with accounting principles generally accepted in the United States of
America(hereinafter referred to as generally accepted accounting principles (GAAP)), as
applied to government units. The Governmental Accounting Standards Board(GASB) is
the accepted standard-setting body for establishing governmental accounting and financial
reporting principles. The more significant of the Village's accounting policies are described
below.
a. Reporting Entity
The Village operates under a Village form of government with an elected Village
President and Board of Trustees. Operational management is provided by a
professional Village Manager employed by the Board of Trustees. Municipal services
include police protection, fire protection,recreation facilities, a free public library,
water supply, storm water collection,public works operations, road maintenance,
building and inspectional services and general administrative services. As required by
generally accepted accounting principles,these financial statements present the
Village(the primary government) and its component units.
The Village's financial statements include the following pension trust funds:
Police Pension Employees Retirement System
The Village's police employees participate in the Police Pension Employees
Retirement System(PPERS). PPERS functions for the benefit of these employees
and is governed its pension board. The Village and PPERS participants are obligated
to fund all PPERS costs based upon actuarial valuations. The State of Illinois is
authorized to establish benefit levels and the Village is authorized to approve the
actuarial assumptions used in the determination of contribution levels. Although it
possesses many of the characteristics of a legally separate government the PPERS is
reported as if it were part of the primary government because its sole purpose is to
finance and administer the pensions of the Village's police employees and because of
the fiduciary nature of such activities. The PPERS is reported as a pension trust fund.
- 30 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
a. Reporting Entity(Continued)
Firefighters' Pension Employees Retirement System
The Village's firefighters participate in the Firefighters' Pension Employees
Retirement System(FPERS). FPERS functions for the benefit of these employees _
and is governed by its pension board. The Village and FPERS participants are
obligated to fund all FPERS costs based upon actuarial valuations.
The State of Illinois is authorized to establish benefit levels and the Village is
authorized to approve the actuarial assumptions used in the determination of
contribution levels. Although it possesses many of the characteristics of a legally
separate government,the FPERS is reported as if it were part of the primary
government because its sole purpose is to finance and administer the pensions of the
Village's firefighters and because of the fiduciary nature of such activities. The
FPERS is reported as a pension trust fund.
b. Fund Accounting
The Village uses funds to report on its financial position,results of its operations and
cash flows. Fund accounting is designed to demonstrate legal compliance and to aid ,..
financial management by segregating transactions related to certain government
functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. The
minimum number of funds is maintained consistent with legal and managerial
requirements. Funds are classified into the following categories: governmental, ._
proprietary and fiduciary.
Governmental funds are used to account for all or most of a government's general
activities, including the collection and disbursement of earmarked monies(special
revenue funds),the acquisition or construction of general capital assets (capital
projects funds), and the servicing of general long-term debt(debt service funds). The _
General Fund is used to account for all activities of the general government not
accounted for in some other fund.
- 31 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
b. Fund Accounting(Continued)
Proprietary funds are used to account for activities similar to those found in the
private sector,where the determination of net income is necessary or useful for sound
financial administration. Goods or services from such activities can be provided either
to outside parties (enterprise funds)or to other departments or agencies primarily
within the government(internal service funds). Pursuant to GASB Statement No. 20,
Accounting and Financial Reporting for Proprietary Funds and Other Government
Entities That Use Proprietary Fund Accounting,the Village has chosen to apply all
GASB pronouncements as well as those FASB pronouncements issued on or before
November 30, 1989 to account for its enterprise funds.
Fiduciary funds are used to account for assets held on behalf of outside parties,
including other governments, or on behalf of other funds within the government. The
Village utilizes pension trust funds which are generally used to account for assets that
the Village holds in a fiduciary capacity.
C. Government-Wide and Fund Financial Statements
The government-wide financial statements(i.e.,the statement of net assets and the
statement of activities)report information on all of the nonfiduciary activities of the
Village. The effect of material interf ind activity has been eliminated from these
statements. Interf ind services provided and used are not eliminated on these statements.
Governmental activities,which normally are supported by taxes and intergovernmental
revenues,are reported separately from business-type activities,which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a
given function,segment or program are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. Program revenues
include 1)charges to customers or applicants who purchase,use or directly benefit from
goods, services or privileges provided by a given function or segment,and 2)grants and
standard revenues that are restricted to meeting the operational or capital requirements of
a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds,proprietary funds and
fiduciary funds,even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
- 32 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
C. Government-Wide and Fund Financial Statements(Continued)
The Village reports the following major governmental funds:
The General Fund is the Village's primary operating fund. It accounts for all
financial resources of the general government,except those required to be
accounted for in another fund.
The Infiastructure Fund,a capital projects fund,is used to account for revenues and .�
expenditures relative to the construction and maintenance of roadway,drainage and
bike trail improvements.
The Village reports the following major enterprise funds:
The Waterworks System Fund accounts for the revenues and expenses relative to
the operation of the water utility.
The Sports Core Fund accounts for the revenues and expenses relative to the
operation of the Oak Brook Sports Core.
Additionally,the Village reports the following internal service funds:
Internal Service Funds account for the Village's self-insured employee health and
dental insurance program;the operation and maintenance of the Village's vehicle
fleet equipment,and the Village's capital replacement program provided to other
departments or agencies of the Village on a cost reimbursement basis.
The Village reports the following fiduciary funds:
The Village reports pension trust funds as fiduciary funds to account for the Police .�
Pension Fund and Firefighters' Pension Fund.
- 33 -
r.
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Measurement Focus,Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting,as are the proprietary funds and
fiduciary funds fund financial statements. Revenues and additions are recorded when
earned and expenses and deductions are recorded when a liability is incurred. Grants and
similar items are recognized as revenue as soon as all eligibility requirements imposed by
the provider have been met. Operating revenues/expenses include all revenues/expenses
directly related to providing enterprise fund services. Incidental revenues/expenses are
reported as non-operating.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to
be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. A sixty-day availability period is used for
revenue recognition for most governmental fund revenues except for sales tax and
telecommunication tax which is 90 days. Expenditures generally are recorded when a
fund liability is incurred. However,debt service expenditures are recorded only when
payment is due by the end of the year.
Those revenues susceptible to accrual are sales taxes, certain taxes collected and held
by the State at year-end on behalf of the Village,certain charges for services and
interest. Permit revenues are not susceptible to accrual because generally they are not
measurable until received in cash.
The Village reports deferred revenue on its financial statements. Deferred revenues arise
when a potential revenue does not meet both the"measurable"and"available"or"earned"
criteria for recognition in the current period. Deferred revenues also arise when resources
are received by the Village before it has a legal claim to them,as when grant monies are
received prior to the incurrence of qualifying expenditures. In subsequent periods,when
both revenue recognition criteria are met,or when the Village has a legal claim to the
resources,the liability for deferred revenue is removed from the financial statements and
revenue is recognized
- 34 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Measurement Focus,Basis of Accounting and Financial Statement Presentation
(Continued)
In applying the susceptible to accrual concept to intergovernmental revenues (i.e.,
federal and state grants),the legal and contractual requirements of the numerous
individual programs are used as guidance. There are,however, essentially two types
of these revenues. In one, 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 expenditures/expenses incurred. In the other, monies are
virtually unrestricted as to purpose of expenditure/expense and are generally
revocable only for failure to comply with prescribed eligibility requirements. These
resources are reflected as revenues at the time of receipt or earlier if they meet the
eligibility criterion.
e. Cash and Investments
Cash and Cash Equivalents
For purposes of the statement of cash flows,the Village's proprietary funds consider
all highly liquid investments with an original maturity of three months or less when
purchased to be cash equivalents.
Investments
In accordance with Governmental Accounting Standards Board Statement No. 31,
Accounting and Financial Reporting for Certain Investments and for External
Investment Pools, non-negotiable certificates of deposit and investments with
maturity of less than one year at date of purchase, if any, are stated at amortized cost.
All other investments are stated at fair value. All investments of the pension trust
funds are stated at fair value.
f. Inventories
Inventories are valued at average cost, not in excess of replacement cost. Inventories
in the General Fund and Garage Fund consist of expendable supplies held for
consumption; inventories in the Sports Core Fund consist of inventory held for resale.
The cost is recorded as an expenditure at the time individual inventory items are
utilized or sold. General Fund inventories are equally offset by a fund balance reserve
which indicates that they do not constitute"available spendable resources" even ..
though they are a component of net current assets.
- 35 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Prepaid Items/Expenses
Payments made to vendors for services that will benefit periods beyond the date of this
report are recorded as prepaid items/expenses.
h. Capital Assets
-- Capital assets,which include property,plant,equipment and infrastructure assets(e.g.,
roads,bridges,sidewalks and similar items),are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. Capital
•- assets are defined by the Village as assets with an initial,individual cost of$5,000 or more
and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date
of donation. Infrastructure acquired prior to the implementation of GASB Statement No.
34 is reported on the financial statements.
The costs of normal maintenance and repairs,including street overlays that do not add to
the value of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets of business-
type activities is included as part of the capitalized value of the assets constructed.
Property,plant and equipment is depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Land improvements 20
Buildings and building improvements 5 - 50
Equipment 5 -20
Vehicles 2 -20
Infrastructure 20 - 75
i. Intangible Assets -Water Purchase Rights
The Village is a customer of the DuPage Water Commission(the Commission)and
has executed a Water Supply Contract(the Contract)with the Commission for a term
ending in 2024. The Contract provides that the Village pay its proportionate share of
"fixed costs" (debt service and capital costs)to the Commission, such obligation
being unconditional and irrevocable whether or not water is ever delivered. These
costs were capitalized until the Commission began to deliver water, and are
amortized, using the straight-line method over the remaining term of the contract and
expensed along with the other operation charges from the Commission.
- 36 -
VILLAGE OF OAK BROOK,ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
j. Compensated Absences
Vested or accumulated vacation, sick or compensatory leave including related social
security and medicare of proprietary funds and governmental activities is recorded as
an expense and liability of those funds as the benefits accrue to employees. In
accordance with the provisions of Governmental Accounting Standards Board _
Statement No.16,Accounting for Compensated Absences, no liability is recorded for
nonvesting accumulating rights to receive sick pay benefits. However,a liability is
recognized for that portion of accumulating sick leave benefits that it is estimated will
be taken as a termination benefit at retirement.
k. Interfund Transactions
Interfimd services are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses
initially made from it that are properly applicable to another fund, are recorded as
expenditures/expenses in the reimbursing fund and as reductions of
expenditures/expenses in the fund that is reimbursed. ..
All other interfund transactions, except interfund services transactions and
reimbursements, are reported as transfers.
1. Interfimd Receivables/Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either"due to/from other funds"
(i.e.,the current portion of interfund loans)or"advances to/from other funds"(i.e.,the ..
non-current portion of interfund loans). All other outstanding balances between funds are
reported as"due to/from other funds".
Advances between funds,as reported in the fund financial statements,are offset by a fund
balance reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
In. Long-Term Obligations
In the government-wide financial statements and proprietary funds in the fund financial
statements,long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities,business-type activities or proprietary fund financial
statements. Bond premiums and discounts,as well as issuance costs,are deferred and
amortized over the life of the bonds. Bonds payable are reported net of the applicable
bond premium or discount. Bond issuance costs are reported as deferred charges and .�
amortized over the term of the related debt.
- 37 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
L
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
in. Long-Term Obligations (Continued)
In the fund financial statements,governmental funds recognize bond premiums and
discounts,as well as bond issuance costs,during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs,whether or not withheld from the actual debt
proceeds received,are reported as expenditures.
n. Fund Balance/Net Assets
In the fund financial statements,governmental funds report reservations of fund balance
for amounts that are not available for appropriation or are legally restricted by outside
parties for use for a specific purpose. Designations of fund balance represent tentative
management plans that are subject to change. In the government-wide financial
statements,restricted net assets are legally restricted by outside parties for a specific
purpose. Invested in capital assets,net of related debt,represents the Village's
investments in the book value of capital assets,less any outstanding debt that was issued
to construct or acquire the capital asset.
2. DEPOSITS AND INVESTMENTS
The Village maintains a cash and investment pool that is available for use by all funds,except the
pension trust funds and the Foreign Fire Insurance Tax Fund Separately held cash and
investments for the Foreign Fire Insurance Tax Fund as well as each fund's portion of this pool is
included on the Statement of Net Assets as"cash and investments. The deposits and
investments of the pension trust funds are held separately from those of other funds. The
Village's cash on hand of$3,900 has been excluded from the amounts shown below.
Permitted Deposits and Investments-The Village's investment policy allows for
deposits/investments in insured commercial banks,savings and loan institutions,obligations of
the U.S.Treasury and U.S.Agencies,insured credit union shares,money market mutual funds
with portfolios of securities issued or guaranteed by the United States or agreement to
repurchase these same obligations,repurchase agreements,short-term commercial paper rated
within the three highest classifications by at least two standard rating services,and Illinois Funds.
The Police Pension Fund and Firefighters' Pension Fund may also invest in certain non-U.S.
obligations,Illinois municipal corporations tax anticipation warrants,veteran's loans,obligations
of the State of Illinois and its political subdivisions,insurance company general and separate
accounts,mutual funds,and equity securities.
- 38 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
2. DEPOSITS AND INVESTMENTS (Continued)
a. Deposits
To guard against credit risk for deposits with financial institutions,the Village and Police
and Firefighters' Pension Fund investment policies require that deposits with financial
institutions in excess of FDIC insurance limits be collateralized in an amount between
110%and 115%of the value of the investment depending on the type of security pledged
as collateral. In addition,the collateral must be held by a third party acting as the agent for
the Village or Pension Funds. At year-end the carrying amount of the Village's deposits
totaled$823,655 and the bank balances totaled$1,510,471. The Police and Fire Pension
Funds' deposits totaled$134,841 and the bank balances totaled$188,409. All bank
balances are covered by federal depository insurance or by collateral held by the Village's
agent in the Village's name.
b. Investments
As of December 31,2005,the Village had the following investments and maturities.
Investment Maturities(in Years)
Fair Less Than More
Value 1 1-5 6-10 Than 10
U.S.Agencies $ 1,958,260 $ - $ 1,958,260 $ - $ -
IlvIET 5,002,869 - 5,002,869 - -
Mutual Fund Money
Market Accounts 122,938 122,938 - - -
Illinois Funds 10,379,922 10,379,922 - - -
TOTAL $ 17,463,989 $ 10,502,860 $ 6,961,129 $ - $ -
As of December 31,2005,the Police Pension Fund had the following investments and
maturities.
Investment Maturities(in Years)
Fair Less More
Value Than 1 1-5 6-10 Than 10
U.S.Agencies $ 9,494,046 $ 150,562 $ 4,893,512 $ 3,845,617 $ 604,355
U.S.Treasuries 3,473,511 - 256,818 3,216,693 -
State and Local
Obligations 902,000 247,400 530,424 124,176 -
Negotiable Certificate
of Deposit 98,193 - - - 98,193
Money Market Mutual
Funds 266,192 266,192 - - -
Illinois Funds 24,807 24,807 - - -
TOTAL $ 14,258,749 $ 688,961 $ 5,680,754 $ 7,186,486 $ 702.548
- 39 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
L
2. DEPOSITS AND INVESTMENTS (Continued)
b. Investments(Continued)
As of December 31,2005,the Firefighters'Pension Fund had the following investments
and maturities.
Investment Maturities(in Years)
Fair Less More
.. Value Than 1 1-5 6-10 Than 10
U.S.Agencies $ 6,395,877 $ 1,676,659 $ 3,110,071 $ 989,577 S 619,570
U.S.Treasuries 2,643,717 - - 2,643,717 -
` State and Local
Obligations 913,176 - 443,371 469,805 -
Money Market Mutual
.. Funds 348,160 348,160 - - -
Illinois Funds 124,121 124,121 - - -
TOTAL $ 10,425,051 $ 2,148,940 $ 3,553,442 $ 4,103,099 $ 619,570
GASB 40 - Operating Funds
In accordance with its investment policy,the Village limits its exposure to interest
rate risk by structuring the portfolio to provide liquidity for operating funds and
maximizing yields for funds not needed within a one-year period. The portion of the
investment portfolio that is invested with the Illinois Metropolitan Investment Fund
(IMET) has an average maturity of 1.65 years and is subject to interest rate risk. The
IMET Fund's duration, which is a measure of interest rate risk, is 1.52 years as of
December 31, 2005. This means that if interest rates were to increase by 1%, the
value of the IMET Fund would decrease by approximately 1.5%; conversely, if
interest rates were to decrease by I%,the value of the IMET Fund would increase by
approximately 1.5%.
_ The Village limits its exposure to credit risk, which is the risk that the issuer of a debt
security will not pay its par value upon maturity. This is done primarily by investing
in securities issued by the United States Government or by investing in securities
issued by agencies of the United States Government,which are implicitly guaranteed
by the United States Government.
_ The Illinois Funds and the IMET fund are both"AAA"rated funds and have minimal
exposure to credit risk. In order to limit the exposure to concentration of credit risk,
the Village's Investment Policy limits investments in any one financial institution to
_ 25%, exclusive of securities guaranteed by the full faith and credit of the United
States Government or obligations of agencies of the United States Government.
-40 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
2. DEPOSITS AND INVESTMENTS (Continued)
b. Investments(Continued)
GASB 40 - Operating Funds (Continued)
At December 31, 2005,the Village had greater than five percent of its overall
portfolio invested in notes of the Federal Home Loan Mortgage Corporation
(11.21%), Illinois Funds (59.44%), and the IMET Fund(28.65%). The investment
policy does not include any limitations as to how much the Village many hold in
Illinois Funds, IMET, or U.S. Treasury and Agency securities.
The Village limits its exposure to custodial credit risk by utilizing an independent,
third party institution, selected by the Village,to act as custodian for its securities and
collateral. For an investment, custodial risk is the risk that, in the event of the failure
of the counterparty,the Village will not be able to recover the value of its investments
or collateral securities that are in the possession of an outside party.
GASB 40 - Police Pension Fund
State statutes as well as the investment policy of the Police Pension Fund provide that
the Fund may invest up to 45%of the investment portfolio in equity mutual funds and
the remaining 55%of the portfolio in fixed income securities. The Police Pension
Fund has hired a fund manager, Oak Brook Bank,to advise and to manage both the
fixed income and equity mutual fund portfolios.
The Police Pension Fund limits its exposure to interest rate risk by structuring the
portfolio to provide liquidity in order to fund current benefit payments while at the
same time extending the average maturity of the investments due to the longer term
nature of the projected fund liabilities. As of December 31, 2005,the fixed income
portfolio had a duration of 3.89 years and is subject to interest rate risk. With a
duration of 3.89 years,this means that if interest rates were to increase by 1%,the
value of the fixed income investments would decrease by approximately 3.9%;
conversely, if interest rates were to decrease by 1%,the value of the fixed income
investments would increase by approximately 3.9%.
The Police Pension Fund strives to limit its exposure to credit risk,which is the risk
that the issuer of a debt security will not pay the par value upon maturity. This is
controlled by primarily investing in securities issued by the United States
Government, securities issued by agencies of the United States Government that carry
an implicit guarantee, or high quality state or local obligations. United States ...
Government and agency securities are considered to be"AAA"rated and are
generally considered free of credit risk due to the stability of the United States
Government. For investments in state and local obligations,41.2%are considered to. ..
be"AAA" and 58.8%have been rated"Aa3".
-41 -
VILLAGE OF OAK BROOK,ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
2. DEPOSITS AND INVESTMENTS (Continued)
b. Investments(Continued)
low
GASB 40- Police Pension Fund(Continued)
At December 31, 2005,the Police Pension Fund had greater than five percent of its
fixed income portfolio invested in obligations of the Federal Farm Credit Bureau
(12.6%), Federal Home Loan Mortgage Corporation(7.2%) and Federal Home Loan
Bank(61.9%). The investment policy does not include any limitations on how much
U.S. Treasury or Agency securities can be held in the portfolio.
The Police Pension Fund invests up to 45%of its investments in equity mutual funds.
The Fund's investment policy defines the strategy in which the Pension Board
follows for the equity investments. The Pension Fund diversifies its equity holdings
by owning several different mutual funds allocated among the following asset classes
subject to the percentage limitations indicated:
Normal Range of
Allocation Allocation
U.S. Large Cap Stocks(may
include some Mid-Cap Stocks) 60% +/- 20%
U.S. Small-Cap Stocks (may
include some Mid-Cap Stocks) 20% +/- 20%
Foreign Securities 10% +/- 10%
Alternative Investments
(including Real Estate) 10% +/- 10%
The Police Pension Fund limits its exposure to custodial risk by utilizing the Trust
Department of Oak Brook Bank to act as custodian for its fixed income securities.
For an investment, custodial risk is the risk that, in the event of the failure of the
counterparty, the Police Pension Board will not be able to recover the value of its
investments that are in the possession of an outside party.
GASB 40 - Firefighters' Pension Fund
State statutes as well as the investment policy of the Firefighters'Pension Board
provide that the Fund may invest up to 45%of the investment portfolio in equity
mutual funds and the remaining 55%of the portfolio in fixed income securities. The
Firefighters' Pension Fund has hired a fund manager, Oak Brook Bank,to advise and
manage the fixed income investments. For equity mutual fund investments,the
Firefighters'Pension Fund utilizes the services of Merrill Lynch.
-42 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
2. DEPOSITS AND INVESTMENTS (Continued)
b. Investments(Continued)
GASB 40 - Firefighters' Pension Fund(Continued)
The Firefighters' Pension Fund limits its exposure to interest rate risk by structuring
the portfolio to provide liquidity in order to fund current benefit payments while at
the same time extending the average maturity of the investments due to the longer -+
term nature of the projected fund liabilities. As of December 31, 2005,the fixed
income portfolio had a duration of 3.69 years and is subject to interest rate risk. With
a duration of 3.69 years,this means that if interest rates were to increase by 1%,the
value of the fixed income investments would decrease by approximately 3.7%;
conversely, if interest rates were to decrease by I%,the value of the fixed income
investments would increase by approximately 3.7%.
The Firefighters' Pension Fund strives to limit its exposure to credit risk,which is the
risk that the issuer of a debt security will not pay the par value upon maturity. This is
controlled by primarily investing in securities issued by the United States
Government, securities issued by agencies of the United States Government that carry
an implicit guarantee, or high quality state or local obligations. United States
Government and agency securities are considered to be"AAA"rated and are
generally considered free of credit risk due to the stability of the United States
Government. For investments in state and local obligations, 100%are considered to
be"AAA"rated investments. —�
At December 31, 2005, the Firefighters'Pension Fund had greater than five percent of
its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau ..,.
(12.0%), Federal Home Loan Mortgage Corporation(5.4%) and Federal Home Loan
Bank(37.9%). The investment policy does not include any limitations on how much
U.S. Treasury or Agency securities can be held in the portfolio.
The Firefighters'Pension Fund invests up to 45%of its investments in equity mutual
funds. The Fund's investment policy defines the strategy in which the Pension Board
follows for the equity investments. The Pension Fund diversifies its equity holdings
by owning several different mutual funds allocated among the following asset classes
subject to the percentage limitations indicated:
Normal Range of
Allocation Allocation
U.S. Large Cap Stocks 50% +/- 10%
U.S. Mid-Cap Stocks 20% +/- 10%
U.S. Small Cap Company Stocks 15% +/- 5%
Foreign Stocks 10% +/- 5%
Alternative Investments
(such as Real Estate Mutual Funds) 5% +/- 5%
- 43 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
2. DEPOSITS AND INVESTMENTS (Continued)
b. Investments (Continued)
GASB 40 - Firefighters' Pension Fund(Continued)
�— The Firefighters' Pension Fund limits its exposure to custodial risk by utilizing the
Trust Department of Oak Brook Bank to act as custodian for its fixed income
securities. For an investment, custodial risk is the risk that, in the event of the failure
of the counterparty,the Firefighters' Pension Board will not be able to recover the
value of its investments that are in the possession of an outside party.
3. PROPERTY TAXES
Property taxes for 2005 attach as an enforceable lien on January 1, 2005, on property values
assessed as of the same date. Taxes are levied by December 31 of the fiscal year by passage
of a Tax Levy Ordinance. Tax bills are prepared by the County and issued on or about May
1, 2006 and August 1, 2006 and are payable in two installments, on or about June 1, 2006
and September 1,2006. The County collects such taxes and remits them periodically. The
Village does not have a tax levy but does receive a share of road and bridge taxes from local
Townships.
4. RECEIVABLES
The following receivables are included in Other Receivables on the Statement of Net
Assets:
GOVERNMENTAL ACTIVITIES
IRMA excess surplus $ 140,018
State income tax 65,003
Hotel/motel tax 30,490
Grants 49,149
Reinsurance 88,459
Other miscellaneous 60,580
TOTAL GOVERNMENTAL ACTIVITIES $ 433,699
BUSINESS-TYPE ACTIVITIES
IRMA excess surplus $ 42,225
Members charges 26,334
Special events 32,694
Other miscellaneous 3,264
TOTAL BUSINESS-TYPE ACTIVITIES $ 104,517
-44 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued) -�
5. CAPITAL ASSETS
Capital asset activity for the year ended December 31,2005 was as follows:
Beginning Ending
Balance Increases Decreases Balance -s
GOVERNMENTAL ACTIVITIES
Capital assets not being depreciated w
Land $ 616,829 $ - $ - $ 616,829
Land right of way 31,687,305 - - 31,687,305
Construction in progress 586,357 - 586,357 -
Total capital assets not being depreciated 32,890,491 - 586,357 32,304,134
Capital assets being depreciated
Buildings,building and land improvements 18,678,239 28,136 17,430 18,688,945
Computer equipment 828,480 29,623 - 858,103
Other equipment 1,419,330 41,429 - 1,460,759
Vehicles 75,416 - - 75,416
Infrastructure 29,317,787 3,554,426 683,969 32,188,244 ,,.4
Internal service fund vehicles 4,529,359 481,983 286,269 4,725,073
Total capital assets being depreciated 54,848,611 4,135,597 987,668 57,996,540
Less accumulated depreciation for
Buildings,building and land improvements 2,869,023 473,758 6,295 3,336,486
Computer equipment 665,185 78,945 24,500 719,630
Other equipment 753,850 150,969 8,562 896,257
Vehicles 48,287 13,187 - 61,474 �+
Infrastructure 15,797,395 626,581 97,612 16,326,364
Internal service fund vehicles 2,649,526 312,941 258,883 2,703,584
Total accumulated depreciation .22 783,266 1,656 381 395,852 24 043,795
Total capital assets being depreciated,net 32,065,345 2,479,216 591,816 33,952,745
GOVERNMENTAL ACTIVITIES
,r
CAPITAL ASSETS,NET $64,955,836 $ 2,479,216 $ 1,178,173 $66,256,879
BUSINESS-TYPE ACTIVITIES
Capital assets not being depreciated ,.k
Land $ 8,353,918 $ - $ 61,652 $ 8,292266
Construction in progress 208,259 121,785 208,259 121,785
Total capital assets not being depreciated 8,562,177 121,785 269,911 8,414,051
Capital assets being depreciated
Land improvements 2,851,545 - - 2,851,545
Building and building improvements 5,694,794 5,144 - 5,699,938
Infrastructure 15,372,382 131,799 8,419 15,495,762
Vehicles 14,337 - - 14,337
Machinery and equipment 4,351,192 358,974 64,995 4,645,171
Internal service fund vehicles 426,615 - - 426,615
Total capital assets being depreciated 28,710,865 495,917 73,414 29,133,368
- 45 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
-- 5. CAPITAL ASSETS (Continued)
Beginning Ending
Balance Increases Decreases Balance
BUSINESS-TYPE ACTIVITIES(Continued)
Less accumulated depreciation for
Land improvements $ 1,847,564 $ 61,782 $ - $ 1,909,346
Building and building improvements 1,761,347 114,460 - 1,875,807
Infrastructure 5,761,971 242,521 6,022 5,998,470
Vehicles 8,483 1,433 - 9,916
Machinery and equipment 2,487,307 267,001 54,512 2,699,796
Internal service fund vehicles 172,487 34,655 - 207,142
Total accumulated depreciation 12,039,159 721,852 60,534 12,700,477
Total capital assets being depreciated,net 16,671,706 (225,935) 12,880 16,432,891
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS,NET $25,233,883 $ (104,150) $ 282,791 $24,846,942
Depreciation expense was charged to functions of the primary government as follows:
GOVERNMENTAL ACTIVITIES
General government $ 386,065
Public safety 142,523
Public works 828,198
Culture and recreation 299,595
TOTAL DEPRECIATION EXPENSE-GOVERNMENTAL ACTIVITIES $ 1,656,381
Construction Contracts
The Village has entered into contracts for the construction or renovation of various facilities as
follows:
Project Expended
Authorizations To Date Commitment
2004 Water Main and Drainage $ 154,220 $ 138,798 $ 15,422
2005 Water Main and Drainage 119,786 107,808 11,978
York/Harger Bike Trail 509,608 470,846 38,762
31'`Street Bike Trail 245,564 158,934 86,630
2005 paving projects 827,617 671,891 155,726
2006 paving projects 91,413 7,615 83,798
TOTALS $ 1,948,208 $ 1,555,892 $ 392,316
- 46 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
6. RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of,damage to, and
destruction of assets; errors and omissions; injuries to employees; illnesses of employees;
and natural disasters.
The Village participates in the Intergovernmental Risk Management Agency(IRMA)which
is an organization of municipalities and special districts in Northeastern Illinois which have
formed an association under the Illinois Intergovernmental Cooperation's Statute to pool its
risk management needs. The Village pays annual premiums to IRMA for its workers'
compensation, general liability and property coverage. iz
The Village assumes the first$2,500 of each occurrence,with IRMA having a mix of self-
insurance and commercial insurance at various amounts above that level. The Village
appoints one delegate, along with an alternate delegate,to represent the Village on the
Board of Directors. The Village does not exercise any control over the activities of the
Agency beyond its representation on the Board of Directors.
The Village,along with IRMA's other members,has a contractual obligation to fund any
deficit of IRMA attributable to a membership year during which it was a member.
Supplemental contributions may be required to fund these deficits. No such contributions
have occurred during the past three years.
In addition,the Village provides medical and dental coverage to Village employees,their
dependents, retirees, and employees of the Oak Brook Park District through a limited self-
insurance program. Through June 30, 2005, the Village was self-insured for the first ..
$75,000 per individual for medical claims up to a maximum limit of$2,055,497 for all
individuals. As of July 1,2005,the Village was self-insured for the first$75,000 per
individual for medical claims up to a maximum limit of$2,506,129 for all individuals.
Commercial insurance is carried for amounts in excess of the self-insured amounts.
Settlements did not exceed insurance coverage in any of the last three years. The Village is
entirely self-insured for dental claims up to the annual benefit limit of$1,000 per individual.
The Village's self-insurance activities are reported in the Self-Insurance Fund, an Internal
Service Fund.
Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and
other funds, retirees, the Oak Brook Park District, and COBRA participants based upon
equivalent premium estimates. Liabilities are reported when it is probable that a loss has Auk
occurred and the amount of the loss can be reasonably estimated. Reported liabilities are
estimated based on historical cost information and include an amount for claims that have
been incurred but not reported. The total claim liability at year end was$260,000. ..
- 47 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
6. RISK MANAGEMENT(Continued)
A reconciliation of claims payable for the current year and that of the preceding year is as
"° follows:
2005 2004
CLAIMS PAYABLE, BEGINNING OF YEAR $ 427,000 $ 225,800
Claims incurred and changes in estimate 2,097,923 2,094,505
Claims paid (2,264,923) (1,893,305)
CLAIMS PAYABLE, END OF YEAR $ 260,000 $ 427,000
7. LONG-TERM DEBT
Installment Contract Payable
The Village has issued three installment contracts payable to provide funds for the
acquisition of capital assets. The installment contracts payable currently outstanding are as
follows:
Fund Balance, Balance, Current
Issue Debt January 1 Issuances Retirements December 31 Portion
Retired by
General Fund Certificates,Series
1999 dated September 24, 1999,
4.93%interest bearing contract,
L due in annual installments
ranging from$70,000 to
$100,000 through September 15,
2009,interest payable March 15
and September 15 of each year, Sports
secured by sales and use taxes. Core $ 455,000 $ - $ 85,000 $ 370,000 $ 85,000
General Fund Certificates,Series
2001 dated December 1,2000,
interest at 4.625%to 4.70%,due
in annual installments ranging
from$190,000 to$370,000
.., through December 1,2010,
interest payable June 1 and
December 1 of each year,secured
by sales and use taxes. General 3,195,000 - 225,000 2,970,000 235,000
-48 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
Installment Contract Payable (Continued)
Fund Balance, Balance, Current
Issue Debt January 1 Issuances Retirements December 31 Portion
Retired by
General Fund Refunding
Certificates,Series 2003 dated
June 1,2003,interest at 1.50%to
3.20%,due in annual
installments ranging from
$65,000 to$125,000 through
December 1,2012,interest
payable June 1 and December 1 Sports
of each year,secured by sales and Core $ 750,000 $ - $ 75,000 $ 675,000 $ 75,000
use taxes.
TOTAL $4,400,000 $ - $ 385,000 $ 4,015,000 $ 395,000
Capital Lease Payable
The Village has entered into a capital lease payable during fiscal year 2005 for the
acquisition of its golf cart fleet for the Sports Core Fund. The capital lease payable,
therefore, is reported in the Sports Core Funds. The capital lease payable currently
outstanding is as follows: "4
Fund Balance, Balance, Current
Issue Debt January 1 Issuances Retirements December 31 Portion
Retired by
Dated March 15,2005,interest
rate of 4.9%,due in monthly ...0
installments of$7,310 from
May 15 through October 15 of
each year through October 15,
2008,interest payable monthly .a
from May 15 through October 15
of each year,secured by Sports
equipment. Core $ - $ 160,315 $ 39,672 $ 120,643 $ 38,265
o.
- 49 -
ta
VILLAGE OF OAK BROOK,ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
Debt Service Requirements to Maturity
-. Annual debt service requirements to maturity are as follows:
L Installment Contracts Installment Contracts Capital Lease Payable
Fiscal Year Payable from Payable from Enterprise from Enterprise
Ending Governmental Activities Fund Fund
December 31, Principal Interest Principal Interest Principal Interest
2006 $ 235,000 $ 139,031 $ 160,000 $ 36,141 $ 38,265 $ 5,596
l.. 2007 250,000 128,162 165,000 30,751 40,183 3,678
2008 260,000 116,600 195,000 24,814 42,195 1,665
2009 275,000 104,575 200,000 17,730 - -
2010 285,000 91,650 100,000 10,100 - -
2011 300,000 78,255 100,000 7,100 - -
2012 315,000 64,155 125,000 4,000 - -
2013 330,000 49,350 - - - -
~ 2014 350,000 33,840 - - - -
2015 370,000 17,390 - - - -
TOTALS $2,970,000 $ 823,008 $ 1,045,000 $ 130,636 $ 120,643 S 10,939
Change in Long-Term Liabilities
During the fiscal year,the following changes occurred in long-term liabilities reported in the
governmental activities:
A
Balances Balances Current
January 1 Additions Reductions December 31 Portion
Installment contracts
payable S 3,195,000 S - $ 225,000 $ 2,970,000 $ 235.000
Compensated 768,206 799,218 684,026 883,398 781,827
absences*
Compensated absences
Internal Service Fund 10,467 10,974 10,467 10,974 10,974
TOTAL
GOVERNMENTAL
ACTIVITIES $ 3,973,673 $ 810,192 $ 919,493 $ 3,864,372 S 1,027,801
*The compensated absences for governmental activities typically has been liquidated by the
General Fund.
- 50 -
VILLAGE OF OAK BROOK,ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
7. LONG-TERM DEBT (Continued)
..4
Change in Long-Term Liabilities (Continued)
During the fiscal year,the following changes occurred in long-term liabilities reported in the
business-type activities:
Balances Balances Current ...,
January 1 Additions Reductions December 31 Portion
Installment contracts
payable $ 1,205,000 $ - $ 160,000 $ 1,045,000 $ 160,000
Capital lease payable - 160,315 39,672 120,643 38,265
Compensated absences 69,206 77,204 69,206 77,204 77,204
TOTAL BUSINESS-
TYPE ACTIVITIES $ 1,274,206 $ 237,519 $ 268,878 $ 1,242,847 $ 275,469
Legal Debt Margin
2004 assessed valuation(latest information available) S 1,425,867,144
Legal debt limit-8.625%of assessed valuation S 122,981,041
Amount of debt applicable to debt limit 4,015,000
LEGAL DEBT MARGIN S 118,966,041
8. INTERFUND ACCOUNTS
Transfers from/to other funds
Transfer From Transfer To Amount
Infrastructure General $ 1,000,000
The purpose of the transfer was to move excess unrestricted funds from the Infrastructure
Fund to the General Fund.
r..
Advance from/to other funds
Receivable Fund Payable Fund Amount
General Sports Core $ 1,290,000
The purpose of this amount advanced to the Sports Core Fund from the General Fund was
to finance various capital projects and operating needs during 1996-2003.
- 51 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
9. COMMITMENTS
a. DuPage Water Commission
The Village is a customer of the DuPage Water Commission and has executed a
Water Supply Contract with the Commission for a term ending in 2024. The
Contract provides that the government pay its proportionate share of"fixed costs"
_ (debt service and capital costs)to the Commission, such obligation being
unconditional and irrevocable whether or not water is ever delivered. These costs are
expensed along with the other operation charges from the Commission.
Fiscal Year
Ending
December 31 Amount
2006 $ 842,000
2007 842,000
2008 842,000
ftw 2009 842,000
2010 842,000
Thereafter 11,788,000
TOTAL S 15,998,000
These amounts have been calculated using the Village's current allocation percentage.
In future years,this allocation percentage will be subject to change. Estimates for
the remaining years of the contract are not currently available. However,the Village
does not expect the minimum amounts for the remaining years of the contract to
materially vary from the amounts presented above.
10. CONTINGENT LIABILITIES
Litigation
The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is
not presently determinable, in the opinion of the Village's attorney,the resolution of these
matters will not have a material adverse effect on the financial condition of the Village.
In addition,the Village may become responsible for certain legal costs associated with other
lawsuits. It is possible,but not probable,that the Village will become liable for these costs.
No liability, therefore, has been recorded on the financial statements for this litigation.
- 52 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
10. CONTINGENT LIABILITIES (Continued)
Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment
by grantor agencies,principally the federal government. Any disallowed claims, including .�
amounts already collected,may constitute a liability of the applicable funds. The amount, if
any, of expenditures which may be disallowed by the grantor cannot be determined at this
time although the Village expects such amounts, if any,to be immaterial
DuPage Water Commission
The Village's agreement with the DuPage Water Commission provides that each member is
liable for its proportionate share of any cost arising from defaults in payment obligations by
other members.
Redevelopment Agreement
The Village entered into a redevelopment agreement with a developer dated June 6, 2005,
whereby the Village has agreed to reimburse the developer for certain costs associated with
the redevelopment project within the tax increment financing (TIF)#1 Butterfield-Meyers
Road Redevelopment Project Area. The agreement requires the Village to reimburse the
developer up to $4,250,000, if certain requirements of the redevelopment agreement are
met. The $4,250,000, if incurred, would be in the form of a note payable issued to the
developer that is payable from certain incremental revenues of the TIF with interest payable
at 8.00% from the date of issuance through maturity. The note is a limited obligation of the
TIF area only and will be secured by the pledge of 100%of the incremental real estates
taxes from the Redevelopment Project Area and 20%of the incremental sales taxes within
the Redevelopment Project Area. A liability has not been recorded for the developer
reimbursements as of December 31, 2005 as the requirements of the redevelopment
agreement have not been met and the note has not been issued.
Municipal Infrastructure Maintenance Fees
From January 1, 1998 through December 31, 2000,the Village imposed a municipal
telecommunications infrastructure maintenance fee (IMF) on persons in the business of
transmitting, supplying or furnishing telecommunications and all associated services (e.g., .�
telecommunications retailers) in Illinois for the"use of public right-of-ways". The fee was
authorized by state statute (35 ILCS 635). In March 2001, a wireless telecommunications
provider brought action against an Illinois government challenging the constitutionality of ,.*
the municipal telecommunications infrastructure maintenance fee. The Illinois Supreme
Court (Court) found the IMF to be unconstitutional as applied to wireless carriers. The
Court's decision held upon appeal. Potential damages to the Village under this case
precedent could aggregate the total of amounts remitted to the Village for IMF by all
carriers during the period from January 1, 1998 through December 31, 2000. The Village
has paid$126,490 to the regional settlement agreement to date but the potential liability has
not been adjudicated. The Village has not estimated any additional liability under potential
IMF lawsuits as of December 31, 2005.
- 53 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
VOW 11. DEFINED BENEFIT PENSION PLANS
The Village contributes to four defined benefit pension plans,the Illinois Municipal
Retirement Fund(IMRF), an agent-multiple-employer public employee retirement system;
the Sheriff's Law Enforcement Personnel(also administered by IMRF), an agent multiple-
employee retirement system; the Police Pension Plan,which is a single-employer pension
plan; and,the Firefighters' Pension Plan,which is also a single-employer pension plan. The
benefits,benefit levels, employee contributions and employer contributions for all three
plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois
General Assembly. The police and firefighter' pension plans each issue separate financial
statements. These reports can be obtained from the Village of Oak Brook, 1200 Oak
Brook Road, Oak Brook, Illinois 60523-2255. IMRF issues a publicly available report that
includes financial statements and supplementary information for the plan as a whole,but not
for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite
500, Oak Brook, Illinois 60523.
a. Plan Descriptions
Illinois Municipal Retirement Fund
All employees (other than those covered by the Police or Firefighters' plans)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.
Participating 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 12/3%of their final rate of earnings, for each year of credited
•- service up to 15 years, and 2.00% 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 4.50%
of their annual salary to IMRF. The Village is required to contribute the remaining
amounts necessary to fund the IMRF as specified by statute. The employer
contribution for the year ended December 31, 2005 was 9.56%of covered payroll.
Sheriff's Law Enforcement Personnel
Sheriffs Law Enforcement Personnel (SLEP)having accumulated at least 20 years of
SLEP service and terminating IMRF participation or after January 1, 1988, may elect
to retire at or after age 50 with no early retirement discount penalty. SLEP members
meeting these two qualifications are entitled to an annual retirement benefit payable
•- monthly for life, in an amount equal to 2 1/2%of their final rate of earnings for each
year of credited service up to 20 years, 2%of their final earnings rate for the next 10
years of credited service and I% for each year thereafter. For SLEP members retiring
with less than 20 years of SLEP service,the regular IMRF pension formula applies.
SLEP also provides death and disability benefits. These benefit provisions and all
other requirements are established by Illinois compiled statute. Participating members
`.. are required to contribute 6.5% of their annual salary to SLEP. The Village is
required to contribute the remaining amounts necessary to fund the SLEP as specified
by statute. The employer contribution for the year ended December 31, 2005 was
13.47% of covered payroll.
- 54 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
11. DEFINED BENEFIT PENSION PLANS (Continued)
a. Plan Descriptions(Continued) -rt
Police Pension Plan
Police sworn personnel are covered by the Police Pension Plan. Although this is a `
single-employer pension plan,the defined benefits and employee and employer
contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and
may be amended only by the Illinois legislature. The Village accounts for the plan as
a pension trust fund. At December 31,2005,the Police Pension Plan membership
consisted of: -�
Retirees and beneficiaries currently receiving benefits 28
Terminated employees entitled to benefits but not
yet receiving them -
Current employees
Vested 25
Nonvested 17 "?
TOTAL 70
The Police Pension Plan provides retirement benefits as well as death and disability
benefits. Covered employees attaining the age of 50 or more with 20 or more years
of creditable service are entitled to receive an annual retirement benefit equal to 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 annual benefit shall be increased by
2.50% of such salary for each additional year of service over 20 years up to 30 years ,.
to a maximum of 75.00%of such salary. Employees with at least eight 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 retired with 20 or more years of
service after January 1, 1977 shall be increased annually, following the first
anniversary date of retirement and upon reaching the age of 55,by 3%of the original
pension and 3%annually thereafter. If the retiree is not yet 55, no increase is made
until reaching age 55, at which time the increase is one twelfth(1/12)of 3% for each
full month that the retiree has been receiving a pension.
Employees are required by ILCS to contribute 9.91%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. Benefits and refunds are recognized when due and payable in accordance
with the terms of the plan. The costs of administering the Plan are financed through
investment earnings. The Village is required to contribute the remaining amounts
necessary to finance the plan as actuarially determined by an enrolled actuary. .�
Effective July 1, 1993,the Village has until the year 2033 to fully fund the past
service cost for the Police Pension Plan. For the year ended
December 31, 2005,the Village's contribution was 17.66% of covered payroll.
- 55 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
11. DEFINED BENEFIT PENSION PLANS (Continued)
a. Plan Descriptions (Continued)
Firefighters' Pension Plan
Fire sworn personnel are covered by the Firefighters' Pension Plan. Although this is a i
single-employer pension plan,the defined benefits and employee and employer
contribution levels are governed by Illinois Compiled Statutes(40 ILCS 5/4-1)and
may be amended only by the Illinois legislature. The Village accounts for the plan as
a pension trust fund. At December 31,2005,the Firefighters' Pension Plan
membership consisted of:
` Retirees and beneficiaries currently receiving benefits 37
Terminated employees entitled to benefits but not
! yet receiving them 1
Current employees
Vested 19
Nonvested 15
TOTAL 72
;- The Firefighters' Pension Plan provides retirement benefits as well as death and
disability benefits. Covered employees attaining the age of 50 or more with 20 or
more years of creditable service are entitled to receive an annual retirement benefit of
one-half of the monthly salary attached to the rank held in the fire service at the date
of retirement. The monthly pension shall be increased by 1/12 of 2.50%of such
monthly salary for each additional month over 20 years of service through 30 years of
service to a maximum of 75.00%of such monthly salary. Employees with at least ten
years but less than 20 years of credited service may retire at or after age 60 and
receive a reduced retirement benefit. The monthly pension of a firefighter who retired
with 20 or more years of service after January 1, 1977 shall be increased annually,
following the first anniversary date of retirement and upon reaching at least the age of
55,by 3%of the original pension and 3%annually thereafter. If not 55,no increase is
granted to the retiree until reaching age 55, at which time the increase is one twelfth
�^ (1/12)of 3%for each full month that the pension was received prior to reaching age
55
.� Covered employees are required to contribute 9.455% of their base salary to the
Firefighters' Pension Plan. If an employee leaves covered employment with less than
20 years of service, accumulated employee contributions may be refunded without
ti accumulated interest. Benefits and refunds are recognized when due and payable in
accordance with the terms of the plan. The costs of administering the Plan are
financed through investment earnings. The Village is required to finance the plan as
actuarially determined by an enrolled actuary. Effective July 1, 1993,the Village has
until the year 2033 to fully fund the past services costs for the Firefighters' Pension
Plan. For the year ended December 31, 2005,the Village's contribution was 21.43%
of covered payroll.
- 56 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
11. DEFINED BENEFIT PENSION PLANS (Continued)
b. Significant Investments
The following are investments (other than U.S. Government guaranteed obligations)
in any one organization that represent 5.00%or more of plan net assets for either the
Police or the Firefighters' Pension Plans. Information for the IMRF and SLEP is not
available. ,.
Plan Organization Amount
r
Police Pension Vanguard Institutional Index Fund $ 2,644,407
Police Pension Dodge&Cox Stock Fund 1,731,593
Police Pension Enterprise Capital Fund 1,735,128
$ 6,111,128
Plan Organization Amount
Firefighters' Pension American Growth Fund $ 1,252,031
Firefighters' Pension Davis NY Venture Fund 1,327,538 -S
Firefighters' Pension Pimco PEA Value Fund 1,105,186
Firefighters' Pension Scudder High Return Fund 1,303,514
Firefighters' Pension Templeton Foreign Fund 1,011,656 ,i;
$ 5,999,925
AWW-
c. Annual Pension Costs
Employer contributions have been determined as follows:
f.
Illinois
Municipal
Retirement .+.
and
Sheriff's
Law
Enforcement Police Firefighters'
Personnel Pension Pension
Actuarial valuation date December 31, January 1, January 1, ...
2003 2005 2005
Actuarial cost method Entry-age Entry-age Entry-age
Normal Normal Normal
- 57 -
.r,
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
11. DEFINED BENEFIT PENSION PLANS (Continued)
C. Annual Pension Costs (Continued)
Illinois
Municipal
Retirement
and
Sheriff's
Law
Enforcement Police Firefighters'
Personnel Pension Pension
Asset valuation method 5 Year Smoothed Market Market
Market
Amortization method Level Percentage Level Level
of Payroll Percentage of Percentage of
Payroll Payroll
Amortization period 27 Years, 29 Years, 29 Years,
Closed Closed Closed
Significant actuarial assumptions
- a) Rate of return on 7.50% 7.50% 7.50%
present and future assets Compounded Compounded Compounded
Annually Annually Annually
b) Projected salary increase- 4.00% 5.25% 5.25%
attributable to inflation Compounded Compounded Compounded
Annually Annually Annually
c) Additional projected .40 to 11.60% Not Available Not Available
salary increases-
�- seniority/merit
- 58 -
w
as
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued) ,.
11. DEFINED BENEFIT PENSION PLANS (Continued)
C. Annual Pension Costs (Continued)
Employer annual required contributions(ARC), actual contributions and the net
pension obligation(NPO) (asset) are as follows. The NPO (asset) is the cumulative
difference between the annual pension costs and the contributions actually made.
Sheriff s
Law
Enforce-
Illinois ment
Calendar Municipal Personnel Calendar Police Firefighters
Year Retirement (*) Year Pension ' Pension
Annual pension cost
(APC) 2003 $ 395,206 N/A 2003 $ 483,197 $ 481,887
2004 500,558 $ 5,688 2004 449,652 490,612
2005 557,323 8,958 2005 497,650 490,244
Actual contribution 2003 $ 395,206 N/A 2003 $ 483,197 $ 481,887
2004 500,558 $ 5,688 2004 449,652 490,612
2005 557,323 8,958 2005 497,650 490,244
Percentage of APC 2003 100.00% N/A 2003 100.00% 100.00%
Contributed 2004 100.00 100.00% 2004 100.00 100.00 ,.
2005 100.00 100.00 2005 100.00 100.00
NPO (Asset) 2003 $ - N/A 2003 $ - $ -
2004 - $ - 2004 - -
2005 - - 2005 - -
Aft
* The Village's participation in SLEP began in 2004.
d. Summary Financial Information .4
The following is summary financial information for the Police and Fire Pension Plans.
- 59 -
VILLAGE OF OAK BROOK,ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
11. DEFINED BENEFIT PENSION PLANS (Continued)
d. Summary Financial Information(Continued)
Statement of Plan Net Assets
Pension Trust
Police Firefighters'
Pension Pension Total
ASSETS
Cash $ 332,971 $ 416,223 $ 749,194
Investments
,towIllinois Funds 24,807 124,121 148,928
Certificates of Deposits 98,193 - 98,193
U.S. Treasury Securities 3,473,511 2,643,717 6,117,228
.� U.S.Agency Securities 9,494,046 6,395,877 15,889,923
State and Local Obligations 902,000 913,176 1,815,176
Mutual Funds 10,293,243 9,463,206 19,756,449
Accrued interest receivable 137,230 99,172 236,402
Prepaid items 125 - 125
Total assets 24,756,126 20,055,492 44,811,618
LIABILITIES
Accounts payable 3,565 2,298 5,863
Total liabilities 3,565 2,298 5,863
NET ASSETS HELD IN TRUST
FOR PENSION PLAN
BENEFITS $ 24,752,561 S 20,053,194 S 44,805,755
- 60 -
.®
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO FINANCIAL STATEMENTS (Continued)
11. DEFINED BENEFIT PENSION PLANS (Continued)
d. Summary Financial Information(Continued)
Statement of Changes in Plan Net Assets
Pension Trust
Police Firefighters' NOR
Pension Pension Total
ADDITIONS
Contributions
Employer contributions $ 497,650 $ 490,244 $ 987,894
Employee contributions 279,258 231,399 510,657
Total contributions 776,908 721,643 1,498,551
Investment income
Net appreciation in ...
Fair value of investments 425,980 719,388 1,145,368
Interest 704,887 346,670 1,051,557
Total investment income 1,130,867 1,066,058 2,196,925
Less investment expense (41,817) (25,551) (67,368)
Net investment income 1,089,050 1,040,507 2,129,557
Total additions 1,865,958 1,762,150 3,628,108
DEDUCTIONS
Benefits and refunds 1,248,694 1,084,489 2,333,183
Administrative 22,145 19,744 41,889
Total deductions 1,270,839 1,104,233 2,375,072
NET INCREASE 595,119 657,917 1,253,036
NET ASSETS HELD IN TRUST
FOR PENSION BENEFITS
January 1 24,157,442 19,395,277 43,552,719 ..
December 31 $ 24,752,561 $ 20,053,194 $ 44,805,755
- 61 -
REQUIRED SUPPLEMENTARY INFORMATION
s
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
REVENUES
Intergovernmental $ 11,632,000 $ 11,632,000 $ 11,593,921 $ (38,079)
Utility taxes 4,419,000 4,419,000 4,268,283 (150,717)
.. Licenses and permits 630,465 630,465 669,726 39,261
Charges for services 635,400 635,400 791,638 156,238
Fines and penalties 370,500 370,500 334,869 (35,631)
Investment income 180,000 180,000 238,612 58,612
Donations 5,000 5,000 15,000 10,000
Miscellaneous 161,500 161,500 166,340 4,840
Total revenues 18,033,865 18,033,865 18,078,389 44,524
EXPENDITURES
Current
General government 4,942,680 4,915,060 4,445,473 (469,587)
Public safety 10,952,685 11,109,005 11,095,778 (13,227)
Public works 804,175 804,175 610,722 (193,453)
Culture and recreation 1,242,780 1,242,780 1,225,331 (17,449)
.� Total expenditures 17,942,320 18,071,020 17,377,304 (693,716)
EXCESS(DEFICIENCY)OF REVENUES
f
OVER EXPENDITURES 91.545 (37,155) 701,085 738,240
OTHER FINANCING SOURCES(USES)
Transfers in 1,000,000 1,000,000 1.000.000 -
Total other financing sources(uses) 1,000,000 1.000.000 1,000,000 -
NET CHANGE IN FUND BALANCE $ 1,091.545 S 962.845 1,701,085 $ 738.240
FUND BALANCE,JANUARY 1 11,241,980
FUND BALANCE,DECEMBER 31 S 12.943.065
(See independent auditor's report.)
- 62 -
VILLAGE OF OAK BROOK, ILLINOIS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2005
f
Budgets
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
budgets are adopted for the General, Special Revenue and Capital Projects Funds on the
modified accrual basis, and Enterprise, Internal Service and Pension Trust Funds on the accrual
basis and a current financial resources measurement focus. The annual budget is legally enacted
and provides for a legal level of control at the program level. All annual appropriations lapse at
fiscal year end.
The Village follows these procedures in establishing the budgetary data reflected in the financial
statements:
l
1. All departments of the Village submit budget requests to the Village Manager so that a
budget may be prepared. j
2. The Village Manager submits to the Village Board of Trustees a proposed operating budget
for the fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them.
3. A public hearing is conducted by the Village to obtain taxpayer comments.
4. Subsequently,the budget is adopted by the Village Board.
5. Annual budgets are adopted for all funds on a basis consistent with generally accepted
7
accounting principles.
At
6. Formal budgetary integration is employed as a management control device during the year
for all funds of the Village.
7. Appropriations lapse at year end.
� 8. The Village Manager and Budget Officer are authorized to transfer budgeted amounts
between line items within any program; however, any revisions that alter the total
expenditures of any program or fund must be approved by the Village Board. The level of
legal control is the individual program budget in total.
9. Budgeted amounts are as originally adopted with the exceptions of approved transfers which
were not material in relation to the budgets taken as a whole. After Village Board transfers,
no program had an excess of expenditures/expenses, exclusive of depreciation and
amortization over budget for the fiscal year.
- 63 -
VILLAGE OF OAK BROOK,ILLINOIS
SCHEDULE OF FUNDING PROGRESS
ILLINOIS MUNICIPAL RETIREMENT FUND
December 31,2005
(4)
Unfunded
(2) (Overfunded) UAAL
Actuarial Actuarial (OAAL)
Accrued Accrued Asa
Actuarial (1) Liability (3) Liability Percentage
Valuation Actuarial (AAL) Funded (UAAL) (5) of Covered
Date Value of Entry-Age Ratio (OAAL) Covered Payroll
December 31, Assets Normal (1)/(2) (2)-(1) Payroll (4)/(5)
2000 $ 9,739,416 $ 8,934,915 109.00% $ (804,501) $ 4,636,007 (17.35%)
2001 10,663,509 9,939,211 107.29% (724,298) 4,967,579 (14.58%)
2002 11,189,319 11,194,278 99.96% 4,959 5,228,707 0.09%
2003 11,079,395 12,017,899 92.19% 938,504 5,589,904 16.79%
2004 10,795,206 12,381,519 87.19% 1,586,313 5,707,616 27.79%
2005 11,795,220 13,314,605 88.59% 1,519,385 5,829,743 26.06%
(See independent auditor's report.)
-64-
VILLAGE OF OAK BROOK,ILLINOIS
SCHEDULE OF FUNDING PROGRESS
SHERIFF'S LAW ENFORCEMENT PERSONNEL
December 31,2005 1
I
(4)
Unfunded
(2) (Overfunded) UAAL
Actuarial Actuarial (OAAL)
Accrued Accrued As a
Actuarial (1) Liability (3) Liability Percentage
Valuation Actuarial (AAL) Funded (UAAL) (5) of Covered
Date Value of Entry-Age Ratio (OAAL) Covered Payroll
December 31, Assets Normal (1)/(2) (2)-(1) Payroll (4)/(5)
2004 $ 7,999 $ (4,983) (160.53%) $ (12,982) $ 42,231 (30.74%)
2005 17,968 (17,180) (104.59%) (35,148) 66,502 (52.85%)
The Village began participating in SLEP in 2004. Information will be accumulated until six years of information
is presented.
.y
(See independent auditor's report.)
-65 -
VILLAGE OF OAK BROOK,ILLINOIS
SCHEDULE OF FUNDING PROGRESS
POLICE PENSION FUND
December 31,2005
1w (2) UAAL
Actuarial (4) As a
Actuarial (1) Accrued (3) Unfunded Percentage
Valuation Actuarial Liability Funded AAL (5) of Covered
Date Value of (AAL) Ratio (UAAL) Covered Payroll
- December 31, Assets Entry-Age (1)/(2) (2)-(1) Payroll (4)/(5)
2000 $ 20,448,157 $ 20,140,332 101.53% $ (307,825) $ 2,249,998 (13.68%)
2001 20,496,069 21,849,564 93.81% 1,353,495 2,616,001 51.74%
2002 20,521,085 23,581,098 87.02% 3,060,013 2,736,034 111.84%
2003 22,790,550 25,499,316 89.38% 2,708,766 2,854,299 94.90%
2004 24,157,442 27,106,938 89.12% 2,949,496 2,808,631 105.02%
2005 24,752,561 28,683,431 86.30% 3,930,870 2,984,609 131.70%
(See independent auditor's report.)
-66-
r
VILLAGE OF OAK BROOK,ILLINOIS
SCHEDULE OF FUNDING PROGRESS
FIREFIGHTERS'PENSION FUND
December 31,2005
(4) UAAL
(2) Unfunded (OAAL)
Actuarial (Overfunded) As a
Actuarial (1) Accrued (3) AAL Percentage
Valuation Actuarial Liability Funded (UAAL) (5) of Covered
Date Value of (AAL) Ratio (OAAL) Covered Payroll
December 31, Assets Entry-Age (1)/(2) (2)-(1) Payroll (4)/(5)
2000 $ 18,050,631 $ 18,772,810 96.15% $ 722,179 $ 1,887,874 38.25%
2001 17,487,246 19,819,493 88.23% 2,332,247 2,144,046 108.78%
2002 16,240,617 20,878,039 77.79% 4,637,422 2,222,646 208.64%
2003 18,254,770 22,439,963 81.35% 4,185,193 2,156,811 194.05%
2004 19,395,277 24,131,120 80.37% 4,735,843 2,298,601 206.03% +t'
2005 20,053,194 26,016,602 77.08% 5,963,408 2,439,899 244.41%
MM
(See independent auditor's report.)
-67-
i
VILLAGE OF OAK BROOK, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
ILLINOIS MUNICIPAL RETIREMENT FUND
December 31,2005
4
Annual
Fiscal Required
Year Employer Contribution Percentage
December 31, Contributions (ARC) Contributed
2000 $ 343,528 $ 343,528 100.00%
2001 359,653 359,653 100.00%
2002 346,663 346,663 100.00%
2003 395,206 395,206 100.00%
2004 500,558 500,558 100.00%
2005 557,323 557,323 100.00%
.�, (See independent auditor's report.)
- 68 -
VILLAGE OF OAK BROOK,ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
SHERIFF'S LAW ENFORCEMENT PERSONNEL
December 31,2005
Annual
Fiscal Required
Year Employer Contribution Percentage
December 31, Contributions (ARC) Contributed
2004 $ 5,688 $ 5,688 100.00%
2005 8,958 8,958 100.00%
The Village began participating in SLEP in 2004. fnfonnation will be accumulated until six
years of information is presented.
(See independent auditor's report.)
- 69-
VILLAGE OF OAK BROOK,ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
POLICE PENSION FUND
December 31,2005
L
Annual
Fiscal Required
Year Employer Contribution Percentage
December 31, Contributions (ARC) Contributed
2000 $ 218,523 $ 218,523 100.00%
2001 271,765 271,765 100.00%
2002 338,565 338,565 100.00%
2003 483,197 483,197 100.00%
2004 449,652 449,652 100.00%
2005 497,650 497,650 100.00%
(See independent auditor's report.)
- 70 -
VILLAGE OF OAK BROOK, ILLINOIS
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FIREFIGHTERS' PENSION FUND Am
December 31, 2005
I
Annual
Fiscal Required '
Year Employer Contribution Percentage
December 31, Contributions (ARC) Contributed
2000 $ 299,044 $ 299,044 100.00%
2001 357,168 357,168 100.00%
2002 417,022 417,022 100.00111/o
2003 481,887 481,887 100.00%
2004 490,612 490,612 100.00%
2005 490,244 490,244 100.00%
(See independent auditor's report.)
- 71 -
MAJOR GOVERNMENTAL FUNDS
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF REVENUES-BUDGET AND ACTUAL
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
REVENUES
Intergovernmental
Municipal sales wx $ 10,750,000 $ 10,750,000 $ 10,497,102 $ (252,898)
Illinois state income and use tax 654,000 654,000 750,002 96,002
Corporate personal property
replacement taxes 190,000 190,000 258,242 68,242
York Township road and
bridge tax 38,000 38,000 36,286 (1,714)
Grants - - 52,289 52,289
Total intergovernmental 11,632,000 11,632,000 11,593,921 (38,079)
Utility taxes 4,419,000 4,419,000 4,268,283 (150,717)
Licenses and permits 630,465 630,465 669,726 39,261
Charges for services 635,400 635,400 791,638 156,238
Fines and penalties 370,500 370,500 334,869 (35,631)
Investment income; 180,000 180,000 238,612 58,612
Donations 5,000 5,000 15,000 10,000
Miscellaneous
Franchise fees 90,500 90,500 98,508 8,008
Other 71,000 71,000 67,832 (3,168)
Total miscellaneous 161,500 161,500 166,340 4,840
TOTAL REVENUES $ 18,033,865 $ 18,033,865 $ 18,078,389 $ 44,524
-
(See independent auditor's report.)
- 72-
VILLAGE OF OAK BROOK,ILLINOIS
GENERALFUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL ..
For the Year Ended December 31,2005
Variance
Original Final Over •.
Budget Budget Actual (Under)
GENERAL GOVERNMENT
Legislative and general management
Board of trustees
Personnel $ 79,310 $ 79,310 $ 74,338 $ (4,972)
Materials and supplies 5,100 8,090 6,626 (1,464) --
Operation and contractual 74,570 71,580 52,361 (19,219)
Total board of trustees 158,980 158,980 133,325 (25,655)
Village clerk
Personnel 178,115 178,115 158,767 (19,348)
Materials and supplies 2,000 2,350 1,423 (927)
Operation and contractual 26,675 26,325 17,195 (9,130)
Total Village clerk 206.790 206,790 177,385 (29,405)
Legal
Personnel 13,630 13,630 15,181 1,551
Materials and supplies 1,600 1,600 277 (1,323)
Operation and contractual 221,660 384,590 384,358 (232)
Total legal 236,890 399,820 399,816 (4) ..�
General management
Personnel 334,470 333,590 327,157 (6,433)
Materials and supplies 5,855 6,735 6,480 (255)
Operation and contractual 10,800 10,800 13,296 2,496
Total general management 351,125 351,125 346,933 (4,192) .,.
Human resources
Personnel 94,195 94,195 86,208 (7,987)
Materials and supplies 2,000 2,000 629 (1,371) .�
Operation and contractual 111,600 124,455 133,811 9,356
Total human resources 207,795 220,650 220,648 (2) ..
Risk management
Personnel 50,855 50,855 44,584 (6,271)
Operation and contractual 515,400 502,545 497,894 (4,651) .r
Total risk management 566.255 553,400 542,478 (10,922)
(This schedule is continued on the following pages.)
-73-
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued)
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
GENERAL GOVERNMENT(Continued)
Legislative and general management(Continued)
Emergency management
Personnel $ 12,765 $ 3,065 $ 40 $ (3,025)
Materials and supplies 4,900 4,900 211 (4,689)
_ Operation and contractual 1,500 1,500 - (1,500)
Total emergency management 19,165 9,465 251 (9,214)
General services
Personnel 65,225 65,225 63,179 (2,046)
Materials and supplies 61,720 61,720 46,019 (15,701)
_ Operation and contractual 13,180 13,180 1,592 (11,588)
Capital 10,000 10,000 11,460 1,460
Total general services 150,125 150,125 122,250 (27,875)
Purchasing
Personnel 136,320 136,320 136,069 (251)
_ Materials and supplies 1,450 1,450 885 (565)
Operation and contractual 1,800 1,800 113 (1,687)
Total purchasing 139,570 139,570 137,067 (2,503)
Information systems
Personnel 371,370 371,370 366,777 (4,593)
Materials and supplies 11,550 19,050 17,608 (1,442)
Operation and contractual 292,580 316,580 284,723 (31,857)
Capital 320,000 254,270 146,869 (107,401)
Total information systems 995.500 961,270 815,977 (145,293)
Community events
Operation and contractual 105,000 105,000 91,536 (13,464)
Total community events 105,000 105,000 91.536 (13,464)
Total legislative and general
management 3,137,195 3,256,195 2.987,666 (268,529)
(This schedule is continued on the following pages.)
-74-
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued)
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
GENERAL GOVERNMENT(Continued)
Community development management
Personnel $ 222,175 $ 223,675 $ 227,683 $ 4,008
Materials and supplies 1,750 1,750 1,088 (662)
Operation and contractual 21,150 18,210 - (18,210)
Total community development
management 245,075 243,635 228,771 (14,864)
Code enforcement
Personnel 295,735 297,175 300,492 3,317
Materials and supplies 2,790 4,690 4,478 (212)
Operation and contractual 32,215 30,315 27,210 (3,105)
Total code enforcement 330,740 332,180 332,180 -
Total community development management 575,815 575,815 560,951 (14,864)
Financial services
Financial services management •.
Personnel 146,420 147,175 149,291 2,116
Materials and supplies 1,075 1,075 221 (854)
Operation and contractual 31,995 31,995 30,732 (1,263) •.
Total financial services management 179,490 180,245 180,244 (1)
Accounting and reporting ..
Personnel 331,515 330,760 311,309 (19,451)
Materials and supplies 7,455 7,455 7,269 (186)
Operation and contractual 29,820 29,820 31,662 1,842
Capital 10,000 10,000 - (10,000)
Total accounting and reporting 378,790 378,035 350,240 (27,795)
Debt service
Operation and contractual 375,040 375,040 375,038 (2)
Total debt service 375,040 375,040 375,038 (2)
Total financial services 933,320 933,320 905,522 (27,798)
(This schedule is continued on the following pages.)
-75-
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued)
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
GENERAL GOVERNMENT(Continued)
Engineering and capital projects
Municipal building improvements
Operation and contractual S 52,250 S 52,250 $ 28,225 $ (24,025)
Capital 366,500 219,880 85,509 (134,371)
Total municipal building improvements 418,750 272,130 113,734 (158,396)
Total engineering and capital projects 418,750 272,130 113,734 (158,396)
Reimbursement of Sports Core expenditures 104,500 104,500 104,500 -
Subtotal general government 5,169,580 5,141,960 4,672,373 (469,587)
Less reimbursements from other funds (226,900) (226,900) (226,900) -
.� Total general government 4,942,680 4,915,060 4,445,473 (469,587)
PUBLIC SAFETY
Police Department
Police services management
Personnel 344,350 309,350 300,618 (8,732)
Materials and supplies 3,500 3,500 2,691 (809)
Operation and contractual 51,405 53,015 62,554 9,539
Total police services management 399,255 365,865 365,863 (2)
Police field services
Personnel 3,308,145 3,535,345 3,557,252 21,907
Materials and supplies 72,550 72,550 62,953 (9,597)
Operation and contractual 278,930 278,930 273,559 (5,371)
Capital 34,000 34,000 27,057 (6,943)
Total police field services 3,693,625 3,920,825 3,920,821 (4)
Police general support
Personnel 258,030 190,830 191,421 591
Materials and supplies 25,500 29,900 29,147 (753)
Operation and contractual 1,625 1,625 867 (758)
Total police general support 285,155 222,355 221,435 (920)
(This schedule is continued on the following pages.)
76-
VILLAGE OF OAK BROOK,ILLINOIS
GENERALFUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) •-.
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
PUBLIC SAFETY(Continued)
Police Department(Continued)
Police investigations
Personnel $ 614,555 $ 548,010 $ 547,712 $ (298)
Materials and supplies 11,850 11,850 9,619 (2,231)
Operation and contractual 39,935 38,325 36,793 (1,532)
Capital 17,200 17,200 17,348 148
Total police investigations 683,540 615,385 611,472 (3,913)
Police communications center
Personnel 702,760 732,295 745,253 12,958
Materials and supplies 17,775 17,775 15,666 (2,109)
Operation and contractual 37,780 37,780 30,264 (7,516)
Capital 22,650 22,650 19,313 (3,337)
Total police communications center 780,965 810,500 810,496 (4)
Police records
Personnel 149,450 149,450 154,720 5,270
Materials and supplies 8,700 6,965 6,120 (845)
Operation and contractual 11,000 9,085 5,989 (3,096) .�
Capital 20,000 20,000 13,954 (6,046)
Total police records 189,150 185,500 180,783 (4,717)
Public relations/crime prevention
Personnel 95,375 96,000 96,172 172
Materials and supplies 4,850 6,140 5,903 (237) .�
Operation and contractual 3,715 3,715 3,776 61
Total public relations/crime prevention 103,940 105,855 105,851 (4) _
Total police department 6,135,630 6,226,285 6,216,721 (9,564
Fire Department ..
Fire and EMS general salaries
Personnel 3,372,575 3,464,930 3,464,925 (5)
Total fire and EMS general salaries 3,372,575 3,464,930 3,464,925 (5)
(This schedule is continued on the following pages.)
-77-
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued)
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
r.
PUBLIC SAFETY(Continued)
Fire Department(Continued)
..., Fire service management
Personnel $ 334,860 $ 347,220 $ 343,290 $ (3,930)
Materials and supplies 4,455 2,555 3,148 593
Operation and cortractual 9,015 9,015 9,015 -
Total fire service management 348,330 358,790 355,453 (3,337)
Rescue and fire operation
Personnel 6,520 5,050 6,609 1,559
Materials and sup plies 60,400 53,945 54,305 360
Operation and cortractual 251,985 249,370 248,492 (878)
Capital 9,000 15,700 14,347 (1,353)
Total rescue and fire operation 327,905 324,065 323,753 (312)
Special teams operations
Personnel 30 30 - (30)
Materials and supplies 11,990 8,160 8,236 76
Operation and contractual 6,370 6,370 6,323 (47)
Capital 5,000 - - -
Total special tuims operations 23,390 14,560 14,559 (1)
Rescue and fire training
Personnel 27,125 28,225 29,611 1,386
Materials and supplies 1,400 1,400 10 (1,390)
Total rescue and fire training 28,525 29,625 29,621 (4)
Emergency medical E ervices
Personnel 44,105 49,925 52,060 2,135
_ Materials and supplies 16,905 11,850 11,464 (386)
Operation and contractual 453,705 462,670 460,921 (1,749)
Total emergency medical services 514,715 524,445 524,445 -
(This schedule is continued on the following pages.)
-78-
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) ..•�
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
PUBLIC SAFETY(Continued)
Fire Department(Continued)
Prevention and public education
Personnel $ 184,390 $ 151,065 $ 151,698 $ 633
Materials and supplies 4,830 2,845 2,341 (504)
Operation and contractual 12,395 12,395 12,262 (133)
Total prevention and public education 201,615 166,305 166,301 (4)
Total fire department 4,817,055 4,882,720 4,879,057 (3,663)
Total public safety 10,952,685 11,109,005 11,095,778 (13,227)
PUBLIC WORKS
Public works management
Personnel - 1,130 - (1,130)
Total public works management - 1,130 - (1,130)
Mosquito control
Operation and contractual 83,600 83,600 83,600 -
Total mosquito control 83,600 83,600 83,600 -
Buildings and grounds
Personnel 68,995 67,865 68,735 870
Materials and supplies 40,250 40,250 35,656 (4,594)
Operation and contractual 208,780 208,780 158,641 (50,139)
Total buildings and grounds 318,025 316,895 263,032 (53,863)
Forestry
Personnel 12,405 12,405 8,949 (3,456)
Materials and supplies 1,235 1,235 1,021 (214)
Operation and contractual 234,910 234,910 100,120 (134,790)
Total forestry 248,550 248,550 110,090 (138,460)
Reimbursement of Infrastructure Fund expenditures 154,000 154,000 154,000 -
Total public works 804,175 804,175 610,722 (193,453)
•a
(This schedule is continued on the following page.)
-79-
i.
VILLAGE OF OAK BROOK,ILLINOIS
GENERAL FUND
SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued)
i
b' For the Year Ended December 31,2005
L
Variance
Original Final Over
Budget Budget Actual (Under)
CULTURE AND RECREATION
Library general operations
Personnel $ 384,735 $ 384,035 $ 384,382 $ 347
Materials and supplies 21,790 22,890 20,185 (2,705)
Operation and contractual 111,450 111,050 107,007 (4,043)
Capital 20,000 11,040 - (11,040)
Total library general operations 537,975 529,015 511,574 (17,441)
Library technical services
Personnel 159,465 161,820 162,316 496
Materials and supplies 6,660 6,660 6,638 (22)
Operation and contr,-.ctual 8,200 8,200 7,722 (478)
Total library technical services 174,325 176,680 176,676 (4)
Library reference and adult services
Personnel 162,485 163,355 163,871 516
Materials and supplies 133,800 133,800 133,770 (30)
_ Operation and contractual 8,500 8,500 8,011 (489)
Total library reference and
adult services 304,785 305,655 305,652 (3)
Library youth services
Personnel 170,220 175,955 176,042 87
_ Materials and supplies 48,750 48,750 48,661 (89)
Operation and contractual 6,725 6,725 6,726 1
Total library youth services 225,695 231,430 231,429 (1)
Total culture and recreation 1,242,780 1,242,780 1,225,331 (17,449)
TOTAL EXPENDITURES $ 17,942,320 $ 18,071,020 $ 17,377,304 S (693,716)
(See independent auditor's report.)
80-
VILLAGE OF OAK BROOK,ILLINOIS
INFRASTRUCTURE FUND
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended December 31,2005
Variance
Original Final Over
Budget Budget Actual (Under)
REVENUES
Intergovernmental-grants $ 225,000 $ 225,000 $ 116,872 $ (108,128)
Non-home rule sales tax 2,420,000 2,420,000 2,422,549 2,549 1
Investment income 15,000 15,000 34,396 19,396
Total revenues 2,660,000 2,660,000 2,573,817 (86,183)
EXPENDITURES
Public works
Management
Personnel 319,135 319,135 330,270 11,135
Materials and supplies 3,295 3,295 1,957 (1,338)
Operation and contractual 84,275 84,275 73,582 (10,693)
�r
Total management 406,705 406,705 405,809 (896)
Streets-general salaries
Personnel 612,600 612,600 606,048 (6,552) ...�
Materials and supplies 5,380 5,380 3,016 (2,364)
Operation and contractual 2,775 2,775 2,622 (153)
Total streets-general salaries 620,755 620,755 611,686 (9,069)
Streets and traffic maintenance
Materials and supplies 31,175 31,175 23,196 (7,979)
Operation and contractual 265,815 265,815 212,458 (53,357) 0"
Capital outlay 54,250 54,250 5,595 (48,655)
Total streets and traffic maintenance 351,240 351,240 241,249 (109,991)
Snow removal
Personnel 53,245 53,245 43,254 (9,991)
Materials and supplies 51,625 51,625 51,316 (309)
Operation and contractual 55,150 55,150 55,544 394 "
Capital outlay 30,000 30,000 3,550 (26,450)
Total snow removal 190,020 190,020 153,664 (36,356)
Drainage maintenance
Materials and supplies 4,760 4,760 2,580 (2,180)
Operation and contractual 52,820 52,820 48,723 (4,097)
Total drainage maintenance 57,580 57,580 51,303 (6,277)
Safety pathway maintenance _
Materials and supplies 11,495 11,495 12,313 818
Operation and contractual 49,750 49,750 18,950 (30,800)
Total safety pathway maintenance 61,245 61,245 31,263 (29,982) •r
(This schedule is continued on the following page.)
-81 -
L
VILLAGE OF OAK BROOK,ILLINOIS
LINFRASTRUCTURE FUND
SCHEDULE OF REVENUES,EXPENDITURES AND
LCHANGES IN FUND BALANCE-BUDGET AND ACTUAL(Continued)
For the Year Ended December 31,2005
Variance
Original Final Over
L _ Budget Budget Actual (Under)
EXPENDITURES(Continued)
Engineering and capital projects
t Engineering
L Personnel $ 391,950 $ 391,950 $ 399,290 $ 7,340
Materials and supplies 2,605 2,605 1,234 (1,371)
Operation and contractual 21,405 21,405 16,073 (5,332)
Capital outlay 20,000 20,000 - (20,000)
Total engineering 435,960 435,960 416,597 (19,363)
Roadway improvements
Operation and contractual 109,200 109,200 93,509 (15,691)
Capital outlay 745,000 745,000 404,785 (340,215)
Total roadway improvements 854,200 854,200 498,294 (355,906)
Stormwater management improvements
Operation and contractual 6,000 6,000 4,558 (1,442)
Capital outlay 56,000 56,000 11,254 (44,746)
Total stormwater management improvements 62,000 62,000 15,812 (46,188)
Safety pathway improvements
.� Operation and contractual 142,000 211,000 203,999 (7,001)
Capital outlay 710,000 641,000 576,348 (64,652)
Total safety pathway improvements 852,000 852,000 780,347 (71,653)
Subtotal expenditures 3,891,705 3,891,705 3,206,024 (685,681)
Less reimbursements from other funds (332,900) (332,900) (332,900) -
Total expenditures 3,558,805 3,558,805 2,873,124 (685,681)
EXCESS(DEFICIENCY)OF REVENUES
OVER EXPENDITURES (898,805) (898,805) (299,307) 599,498
OTHER FINANCING SOURCES(USES)
Transfers(out) (1,000,000) (1,000,000) (1,000,000) -
Total other financing sources(uses) (1,000,000) (1,000,000) (1,000,000) -
_ NET CHANGE IN FUND:BALANCE $ (1,898,805) $ (1,898,805) (1,299,307) $ 599,498
FUND BALANCE,JANUARY 1 2,996,267
FUND BALANCE,DECEMBER 31 S 1.696.960
(See independent auditor's report.)
82-
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Hotel/Motel Tax Fund- to account for local hotel/motel tax receipts restricted for promoting
tourism and conventions in the Village.
Motor Fuel Tax Fund-to account for State Gasoline Tax Allocations restricted for local roadway
program expenditures.
Foreign Fire Insurance Tax Fund-to account for Foreign Fire Insurance tax revenue restricted
for the purchase of items for the benefit of the fire department.
VILLAGE OF OAK BROOK,ILLINOIS
�a
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
December 31, 2005
Special Revenue Funds Total
Foreign Fire Nonmajor
Hotel/Motel Motor Insurance Governmental
Tax Fuel Tax Tax Funds
ASSETS
MIA
Cash and investments $ 235,307 $ 227,397 $ 121,725 $ 584,429
Receivables
Allotments - 20,946 - 20,946
Accrued interest 291 90 - 381
Other,hotel/motel tax 30,490 - - 30,490
TOTAL ASSETS $ 266,088 S 248,433 $ 121,725 $ 636,246
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 26,998 S - S - S 26,998
Total liabilities 26,998 - - 26,998 _
FUND BALANCES
Reserved for maintenance of roadways - 248,433 - 248,433
Reserved for public safety - - 121,725 121,725
Reserved for culture and recreation 239,090 - - 239,090
Total fund balances 239,090 248,433 121,725 609,248
TOTAL LIABILITIES AND
FUND BALANCES S 266.088 S 248.433 S 121.725 S 636.246
(See independent auditor's report.)
- 83 -
VILLAGE OF OAK BROOK,ILLINOIS
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES
` AND CHANGES IN FUND BALANCES
For the Year Ended December 31,2005
tow
Special Revenue Funds Total
Foreign Fire Nonmajor
Hotel/Motel Motor Fuel Insurance Governmental
Tax Tax Tax Funds
.. REVENUES
Intergovernmental $ - $ 253,480 $ 46,321 $ 299,801
Hotel/motel taxes 349,615 - - 349,615
6M Investment income 5,450 8,023 378 13,851
Total revenuers 355,065 261,503 46,699 663,267
EXPENDITURES
Current
`- Public safety - - 63,059 63,059
Public works - 472,501 - 472,501
Culture and recreation 369,330 - - 369,330
Total expenditures 369,330 472,501 63,059 904,890
NET CHANGE IN FUND BALANCES (14,265) (210,998) (16,360) (241,623)
FUND BALANCES,JANUARY 1 253,355 459,431 138,085 850,871
FUND BALANCES,DECEMBER 31 $ 239,090 $ 248,433 $ 121,725 $ 609,248
(See independent auditor's report.)
- 84 -
VILLAGE OF OAK BROOK,ILLINOIS
HOTEL/MOTEL FUND
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended December 31,2005
�t
2005
Variance
Original Final Over
Budget Budget Actual (Under)
REVENUES
Hotel/motel taxes S 300,000 S 300,000 S 349,615 S 49,615
Investment income 5,000 5,000 5,450 450
Total revenues 305,000 305,000 355,065 50,065
EXPENDITURES ••.
Current
Culture and recreation 470,900 470,900 369,330 (101,570)
Total expenditures 470,900 470,900 369,330 (101,570)
NET CHANGE IN FUND BALANCE $ (165,900) S (165,900) (14,265) $ 151,635
FUND BALANCE,JANUARY 1 253,355
FUND BALANCE,DECEMBER 31 $ 239,090
(See independent auditor's report.)
- 85 -
VILLAGE OF OAK BROOK,ILLINOIS
MOTOR FUEL TAX FUND
SCHEDULE OF REVENUES,EXPENDITURES AND
.. CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Year Ended December 31,2005
2005
Variance
Original Final Over
Budget Budget Actual (Under)
- REVENUES
Intergovernmental $ 251,500 $ 251,500 $ 253,480 $ 1,980
Investment income 3,000 3,000 8,023 5,023
Total revenues 254,500 254,500 261,503 7,003
EXPENDITURES
Current
Public works 484,000 484..000 472,501 (11,499)
Total expenditi res 484,000 484,000 472,501 (11,499)
NET CHANGE IN FU14D BALANCE S (229,500) S (229.500) (210,998) $ 18,502
FUND BALANCE,JANUARY 1 459,431
FUND BALANCE,DECEMBER 31 $ 248,433
(See independent auditor's report.)
- 86-
PROPRIETARY FUNDS
MAJOR ENTERPRISE FUNDS
VILLAGE OF OAK BROOK,ILLINOIS
WATERWORKS SYSTEM FUND
SCHEDULE OF REVENUES,EXPENSES AND �+
CHANGES IN NET ASSETS-BUDGET AND ACTUAL
For the Year Ended December 31,2005
(With Comparative Actual)
2005 I
Variance
Original Final Over 2004 ,..q
Budget Budget Actual (Under) Actual
OPERATING REVENUES
Charges for services
Water sales $ 4,223,000 $ 4,223,000 $ 4,292,127 $ 69,127 $ 3,830,751
Unmetered sales 20,000 20,000 28,980 8,980 28,850
Water tap on charges 50,000 50,000 57,960 7,960 62,790 "+
Fire service charges - - - - 9,486
Meter fees and special services 26,000 26,000 42,106 16,106 34,709
Miscellaneous 50,000 50,000 48,014 (1,986) 48,392
Total operating revenues 4,369,000 4,369,000 4,469,187 100,187 4,014,978
OPERATING EXPENSES -`
Operation of facilities 4,743,210 4,743,210 3,880,959 (862,251) 3,810,475
Depreciation and amortization - - 454,887 454,887 435,810
rs
Total operating expenses 4,743,210 4,743,210 4,335,846 (407,364) 4,246,285
OPERATING INCOME(LOSS) (374,210) (374,210) 133,341 507,551 (231,307)
NONOPERATING REVENUES
(EXPENSES)
Investment income 35,000 35,000 76,387 41,387 30,009
Total nonoperating revenues
(expenses) 35,000 35,000 76,387 41,387 30,009
CHANGE IN NET ASSETS $ (339,210) $ (339,210) 209,728 $ 548,938 (201,298)
NET ASSETS,JANUARY 1 15,822,031 16,023,329
NET ASSETS,DECEMBER 31 $ 16,031,759 $ 15,822,031
(See independent auditor's report.)
-88-
f
VILLAGE OF OAK BROOK,ILLINOIS
... WATERWORKS SYSTEM FUND
SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL
For the Year Ended December 31,2005
(With Comparative Actual)
av
2005
Variance
Original Final Over 2004
Budget Budget Actual (Under) Actual
OPERATING EXPENSES
EXCLUDING DEPRECIATION
Operation of facilities
Public works-water operations
�. Personnel $ 603,950 $ 603,950 $ 640,988 $ 37,038 $ 566,354
Materials and supplies 90,365 90,365 110,973 20,608 204,163
Operation and contractual 3,196,895 3,196,895 2,757,998 (438,897) 2,714,958
_ Reimbursements for general
fund services 371,000 371,000 371,000 - 325,000
Total public works-water
•• operations 4,262,210 4,262,210 3,880,959 (381,251) 3,810,475
Capital improvements
Capital outlay 481,000 481,000 136,699 (344,301) 494,258
Total capital improvements 481,000 481,000 136,699 (344,301) 494,258
TOTAL OPERATING EXPENSES
EXCLUDING DEPRECIATION-
BUDGETARY BASIS $ 4,743,210 S 4,743,210 4,017,658 $ (725,552) 4,304,733
ADJUSTMENTS TO GAAP BASIS
Capital expenditures (136,699) (494,258)
Depreciation expense 386,027 366,950
Amortization expense 68,860 68,860
Total adjustments to GAAP basis 318,188 (58,448)
TOTAL OPERATING EXPENSES S 4,335,846 S 4,246,285
(See independent auditor's report.)
-89-
VILLAGE OF OAK BROOK,ILLINOIS
SPORTS CORE FUND
SCHEDULE OF REVENUES,EXPENSES AND
CHANGES IN NET ASSETS-BUDGET AND ACTUAL
For the Year Ended December 31,2005 _
(With Comparative Actual)
2005
Variance
Original Final Over 2004 —
Budget Budget Actual (Under) Actual
OPERATING REVENUES
Charges for services
Golf $ 2,268,960 $ 2,268,960 $ 2,187,734 $ (81,226) $ 2,125,578
Bath and tennis 325,975 325,975 298,483 (27,492) 306,720
Food and beverage 989,725 989,725 944,378 (45,347) 886,296
Total operating revenues 3,584,660 3,584,660 3,430,595 (154,065) 3,318,594
OPERATING EXPENSES
Golf club 1,571,870 1,619,950 1,552,356 (67,594) 1,504,713
Bath and tennis 857,515 807,735 590,519 (217,216) 565,042
Food and beverage 1,031,315 1,033,015 977,960 (55,055) 979,258 ~
Depreciation - - 301,170 301,170 266,641
Total operating expenses 3,460,700 3,460,700 3,422,005 (38,695) 3,315,654 •�
OPERATING INCOME(LOSS) 123,960 123,960 8,590 (115,370) 2,940
NONOPERATING REVENUES
(EXPENSES)
Investment income 4,000 4,000 6,431 2,431 2,444
Interest expense (201,540) (201,540) (40,201) 161,339 (45,384) —
Gain on sale of capital assets - - 1,061,472 1,061,472 -
Total nonoperating revenues
(expenses) (197,540) (197,540) 1,027,702 1,225,242 (42,940)
CHANGE IN NET ASSETS $ (73,580) $ (73,580) 1,036,292 $ 1,109,872 (40,000)
NET ASSETS,JANUARY 1 10,258,766 10,298,766
NET ASSETS,DECEMBER 31 $ 11,295,058 $ 10,258,766
(See independent auditor's report.)
-90-
I
VILLAGE OF OAK BROOK,ILLINOIS
SPORTS CORE FUND
SCHEDULE OF OPERATING REVENUES-BUDGET AND ACTUAL
For the Year Ended December 31,2005
(With Comparative Actual)
2005
Variance
Original Final Over 2004
Budget Budget Actual (Under) Actual
CHARGES FOR SERVICES
Golf
Fees $ 1,659,235 $ 1,659,235 $ 1,590,058 $ (69,177) $ 1,542,201
Golf surcharge 69,750 69,750 65,993 (3,757) 66,633
Memberships 319,975 319,975 312,825 (7,150) 302,425
Merchandise sales 220,000 220,000 218,858 (1,142) 214,319
Total golf 2,268,960 2,268,960 2,187,734 (81,226) 2,125,578
Bath and tennis
Fees 112,600 112,600 113,552 952 112,772
•- Memberships 211,075 211,075 180,247 (30,828) 192,865
Merchandise sales 1,300 1,300 2,219 919 794
Miscellaneous 1,000 1,000 2,465 1,465 289
Total bath and tennis 325,975 325,975 298,483 (27,492) 306,720
Food and beverage
Food sales 589,000 589,000 548,846 (40,154) 508,429
Beverage sales 328,700 328,700 317,434 (11,266) 313,541
Miscellaneous 72,025 72,025 78,098 6,073 64,326
~ Total food and beverage 989,725 989,725 944,378 (45,347) 886,296
TOTAL OPERATING REVENUES S 3,584,660 $ 3,584,660 $ 3.430,595 $ (154,065) S 3,318.594
i
L.
1
i
6w
1
6- (See independent auditor's report.)
-91 -
L
VILLAGE OF OAK BROOK,ILLINOIS
+r
SPORTS CORE FUND
SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL -r
i
For the Year Ended December 31,2005
(With Comparative Actual)
2005
Variance
Original Final Over 2004
Budget Budget Actual (Under) Actual
.1
OPERATING EXPENSES EXCLUDING
DEPRECIATION
Operations-golf club •
Golf club general operations
Personnel $ 424,200 $ 430,160 $ 430,397 $ 237 $ 405,516
Materials and supplies 203,280 214,100 214,283 183 213,501
Operation and contractual 186,360 189,755 189,332 (423) 173,924 'r
Total golf club general operations 813,840 834,015 834,012 (3) 792,941
Golf club range operations
Personnel 54,610 54,610 47,948 (6,662) 49,114
Materials and supplies 14,500 14,500 12,514 (1,986) 12,695
Operation and contractual 11,100 11,100 9,271 (1,829) 10,861
Total golf club range operations 80,210 80,210 69,733 (10,477) 72,670
a.,
Golf cart operations
Personnel 24,885 28,890 30,529 1,639 24,395
Materials and supplies 1,400 1,400 211 (1,189) 188
Operation and contractual 53,000 53,000 2,697 (50,303) 7,194
Total golf cart operations 79,285 83,290 33,437 (49,853) 31,777
Golf course maintenance
Personnel 447,285 447,285 447,414 129 451,004
Materials and supplies 138,250 162,150 157,769 (4,381) 139,492
Operation and contractual 13,000 13,000 9,991 (3,009) 16,829 "F
Total golf course maintenance 598,535 622,435 615,174 (7,261) 607,325
..a
Total operations-golf club 1,571,870 1,619,950 1,552,356 (67,594) 1,504,713
Operations-bath and tennis
General operations-Sports Core,Polo .�.
and Open Fields
Personnel 214,310 222,610 211,135 (11,475) 217,447
Materials and supplies 26,550 26,550 13,068 (13,482) 35,067 -k
Operation and contractual 138,555 154,805 128,800 (26,005) 88,602
Total general operations 379,415 403,965 353,003 (50,962) 341,116
(This schedule is continued on the following page.)
-92-
+r
VILLAGE OF OAK BROOK,ILLINOIS
SPORTS CORE FUND
SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued)
For the Year Ended December 31,2005
(With Comparative Actual)
2005
Variance
Original Final Over 2004
Budget Budget Actual (Under) Actual
OPERATING EXPENSES EXCLUDING
DEPRECIATION(Continued)
Operations-bath and tennis(Continued)
Swimming operations
Personnel $ 94,250 $ 94,250 $ 106,969 $ 12,719 $ 89,297
Materials and supplies 19,600 19,600 36,758 17,158 14,517
Operation and contractual 29,600 29,600 16,971 (12,629) 34,663
Total swimming operations 143,450 143,450 160,698 17,248 138,477
Tennis operations-outdoor
r-r Personnel 74,600 74,600 66,825 (7,775) 64,188
Materials and supplies 4,850 4,850 1,299 (3,551) 2,555
Operation and contractual 11,200 11,200 8,694 (2,506) 11,292
Total tennis operations-outdoor 90,650 90,650 76,818 (13,832) 78,035
Total operations-bath and tennis 613,515 638,065 590,519 (47,546) 557,628
Food and beverage
Personnel 533,165 516,120 452,263 (63,857) 529,796
Materials and supplies 335,300 343,795 363,108 19,313 320,143
Operation and contractual 162,850 173,100 162,589 (10,511) 129,319
Total food and beverage 1,031,315 1,033,015 977,960 (55,055) 979,258
Capital outlay 244,000 169,670 86,625 (83,045) 81,914
TOTAL OPERATING EXPENSES-
" BUDGETARY BASIS S 3,460,700 S 3,460.700 3,207,460 S (253,240) 3,123,513
ADJUSTMENTS TO GAAP BASIS
Capital expenditures (86,625) (74,500)
Depreciation expense 301,170 266,641
Total adjustments to GAAP basis 214,545 192,141
TOTAL OPERATING EXPENSES $ 3,422,005 S 3.315.654
(See independent auditor's report.)
-93-
.�.
.,,
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.�.,
ar.
w
ti�
�r
...
w�
e
�.�.
�,.
:.r
INTERNAL SERVICE FUNDS
Self-Insurance Fund-to account for all costs associated with self-insurance risks for employee
�— health and dental insurance.
Garage Fund-to account for all costs associated with the operation and maintenance of the
Village's vehicle fleet equipment.
Capital Replacement Fund-to account for revenues and expenditures relative to the replacement
of major capital equipment,primarily vehicles.
A
MW
VILLAGE OF OAK BROOK,ILLINOIS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
December 31,2005
Self- Capital
Insurance Garage Replacement Total
CURRENT ASSETS
Cash and investments $ 288,441 $ 61,710 $ 2,560,361 $ 2,910,512
Receivables
Accrued interest - - 2,531 2,531
Other 87,617 842 - 88,459
Inventories - 45,479 - 45,479
r.
Total current assets 376,058 108,031 2,562,892 3,046,981
CAPITAL ASSETS .�.
Depreciable,net of
accumulated depreciation - 17,827 2,223,135 2,240,962
Net capital assets - 17,827 2,223,135 2,240,962
Total assets 376,058 125,858 4,786,027 5,287,943
CURRENT LIABILITIES
Accounts payable - 20,973 4,318 25,291
Accrued payroll - 7,880 - 7,880
Compensated absences payable - 10,974 - 10,974
Deferred revenue 62,230 - - 62,230
Claims payable 260,000 - - 260,000
Total current liabilities 322,230 39,827 4,318 366,375
NET ASSETS
Invested in capital assets,net
of related debt - 17,827 2,223,135 2,240,962
Unrestricted 53,828 68,204 2,558,574 2,680,606
TOTAL NET ASSETS $ 53,828 S 86.031 S 4,781,709 $ 4.921,568
(See independent auditor's report.)
- 94-
VILLAGE OF OAK BROOK,ILLINOIS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES
AND CHANGES IN NET ASSETS
For the Year Ended December 31,2005
Self- Capital
Insurance Garage Replacement Total
OPERATING REVENUES
Charges for services $ 2,479,734 $ 481,295 S 448,565 $ 3,409,594
Total operating revenues 2,479,734 481,295 448,565 3,409,594
OPERATING EXPENSES
Claims and insurance 2,440,384 - - 2,440,384
Garage operations - 487,560 - 487,560
Miscellaneous - - 2,882 2,882
Depreciation - 2,457 345,139 347,596
Total operating expenses 2,440,384 490,017 348,021 3,278,422
OPERATING INCOME(LOSS) 39,350 (8,722) 100,544 131,172
NONOPERATING REVENUES(EXPENSES)
Investment income 3,730 2,522 65,693 71,945
Gain on sale of capital assets - - 38,139 38,139
Total nonoperating revenues(expenses) 3,730 2,522 103,832 110,084
!� CHANGE IN NET ASSETS 43,080 (6,200) 204,376 241,256
NET ASSETS,JANUARY 1 10,748 92,231 4,577,333 4,680,312
NET ASSETS,DECEMBER 31 $ 53.828 $ 86.031 S 4,781,709 $ 4,921,568
.- (See independent auditor's report.)
-95 -
VILLAGE OF OAK BROOK,ILLINOIS
s
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS A
For the Year Ended December 31,2005
Self- Capital
Insurance Garage Replacement Total +w
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from internal services transactions $ 1,676,341 $ 480,553 $ 448,565 $ 2,605,459
Receipts from miscellaneous revenue 1,133,046 - - 1,133,046
Payments to suppliers (2,607,384) (315,670) (4,564) (2,927,618)
Payments to employees - (165,129) - (165,129)
Net cash from operating activities 202,003 (246) 444,001 645,758 .r
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
None - - - -
Net cash from noncapital financing activities - - -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchase of capital assets (14,985) (438,499) (453,484)
Proceeds from sale of capital assets 37,025 37,025
Net cash from capital and
related financing activities (14.985) (401,474) (416,459) --
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments - - (18,451) (18,451)
Interest received 3,730 2,522 67,724 73,976
Net cash from investing activities 3,730 2,522 49,273 55,525
NET INCREASE(DECREASE)IN
CASH AND CASH EQUIVALENTS 205,733 (12,709) 91,800 284,824
CASH AND CASH EQUIVALENTS,
JANUARY 1 82,708 74,419 1,408,371 1,565,498
CASH AND CASH EQUIVALENTS, ,w
DECEMBER31 $ 288,441 $ 61,710 $ 1,500,171 S L8�0_,22
CASH AND INVESTMENTS
Cash and cash equivalents $ 288,441 S 61,710 S 1,500,171 $ 1,850,322
Investments - - 1,060,190 1,060,190
TOTAL CASH AND INVESTMENTS $ 288.441 S 61.710 S 2.560.361 S 2,910,512
NONCASH TRANSACTIONS
Unrealized gain(loss)on investments $ - S - S (3,776) S (3,776)
(This statement is continued on the following page.)
-96-
4
VILLAGE OF OAK BROOK,ILLINOIS
} INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS(Continued)
I
4, For the Year Ended December 31,2005
Self- Capital
Insurance Garage Replacement Total
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Operating income(loss) $ 39,350 $ (8,722) $ 100,544 $ 131,172
Depreciation - 2,457 345,139 347,596
Adjustments to reconcile operating income
(loss)to net cash from operating activities
Changes in assets and liabilities
Accounts receivable 267,423 (742) - 266,681
Inventories - (8,118) - (8,118)
Accounts payable - 14,723 (1,682) 13,041
Accrued payroll and compensated absences - 156 - 156
Deferred revenue 62,230 - - 62,230
Claims payable (167,000) - - (167,000)
NET CASH FROM OPERATING ACTIVITIES $ 202,003 S (246) $ 444,001 S 645,758
ti
w
`+ (See independent auditor's report.)
-97-
VILLAGE OF OAK BROOK,ILLINOIS
aw
SELF-INSURANCE FUND
SCHEDULE OF REVENUES,EXPENSES AND •%
CHANGES IN NET ASSETS-BUDGET AND ACTUAL
For the Year Ended December 31,2005
•Ok
(With Comparative Actual)
oft
2005
Variance
Original Final Over 2004 ...
Budget Budget Actual (Under) Actual
OPERATING REVENUES
Charges for services $ 2,291,600 $ 2,291,600 $ 2,479,734 $ 188,134 $ 2,035,103
Total operating revenues 2,291,600 2,291,600 2,479,734 188,134 2,035,103
OPERATING EXPENSES
Claims and insurance
Insurance and administration 315,725 315,725 342,460 26,735 292,914
Health claims 1,765,000 1,765,000 1,960,068 195,068 1,962,923 'at
Dental claims 156,000 156,000 137,856 (18,144) 131,581
Total operating expenses 2,236,725 2,236,725 2,440,384 203,659 2,387,418 ,
OPERATING INCOME(LOSS) 54,875 54,875 39,350 (15,525) (352,315)
NONOPERATING REVENUES
(EXPENSES)
Investment income 4,000 4,000 3,730 (270) 3,866
Total nonoperating revenues
(expenses) 4,000 4,000 3,730 (270) 3,866
CHANGE IN NET ASSETS S 58,875 S 58,875 43,080 S (15,795) (348,449) "1
NET ASSETS,JANUARY 1 10,748 359,197
rt
NET ASSETS,DECEMBER 31 S 53,828 S 10,748
oat
(See independent auditor's report.)
-98-
VILLAGE OF OAK BROOK,ILLINOIS
GARAGE FUND
SCHEDULE OF REVENUES,EXPENSES AND
CHANGES IN NET ASSETS-BUDGET AND ACTUAL
4
For the Year Ended December 31,2005
(With Comparative Actual)
2005
i., Variance
Original Final Over 2004
Budget Budget Actual (Under) Actual
OPERATING REVENUES
Charges for services $ 485,000 S 485,000 $ 481,295 $ (3,705) $ 469,100
%„ Total operating revenues 485,000 485,000 481,295 (3,705) 469,100
OPERATING EXPENSES EXCLUDING
? DEPRECIATION
Garage operations
Personnel 173,245 173,245 165,285 (7,960) 160,035
Materials and supplies 149,770 149,770 175,071 25,301 134,694
Operations and contractual 151,505 151,505 147,204 (4,301) 161,482
Capital outlay 15,000 15,000 14,985 (15) -
Total operating expenses
excluding depreciation 489,520 489,520 502,545 13,025 456,211
OPERATING INCOME (4,520) (4,520) (21,250) (16,730) 12,889
`* NONOPERATING REVENUES
(EXPENSES)
Miscellaneous income - - - - 839
Investment income 1,000 1,000 2,522 1,522 898
Total nonoperating revenues
(expenses) 1,000 1,000 2,522 1,522 1,737
CHANGE IN NET ASSETS-
BUDGETARY BASIS $ (3,520) $ (3,520) (18,728) $ (15,208) 14,626
ADJUSTMENTS TO GAAP BASIS
Capital expenditures 14,985 -
Depreciation expense (2,457) (9,878)
Total adjustments to GAAP basis 12,528 (9,878)
CHANGE IN NET ASSETS-GAAP BASIS (6,200) 4,748
NET ASSETS,JANUARY 1 92,231 87,483
NET ASSETS,DECEMBER 31 $ 86,031 S 92,231
~ (See independent auditor's report.)
-99-
VILLAGE OF OAK BROOK,ILLINOIS
i
CAPITAL REPLACEMENT FUND
SCHEDULE OF REVENUES,EXPENSES AND
CHANGES IN NET ASSETS-BUDGET AND ACTUAL
For the Year Ended December 31,2005
(With Comparative Actual)
�i
2005
Variance
Original Final Over 2004
Budget Budget Actual (Under) Actual ...
OPERATING REVENUES
Charges for services $ 448,565 $ 448,565 $ 448,565 $ - $ 50,600
..F
Total operating revenues 448,565 448,565 448,565 - 50,600
OPERATING EXPENSES EXCLUDING
DEPRECIATION
Capital outlay 811,310 811,310 469,880 (341,430) 678,201
Total operating expenses
excluding depreciation 811,310 811,310 469,880 (341,430) 678,201
OPERATING INCOME(LOSS) (362,745) (362,745) (21,315) (341,430) (627,601)
NONOPERATING REVENUES
(EXPENSES)
Investment income 50,000 50,000 65,693 15,693 27,458 --
Gain on sale of capital assets 10,000 10,000 38,139 28,139 8.458
Total nonoperating revenues
(expenses) 60,000 60,000 103,832 43,832 35,916
CHANGE IN NET ASSETS-
BUDGETARY BASIS $ (302,745) $ (302,745) 82,517 $ 385,262 (591,685) out
ADJUSTMENTS TO GAAP BASIS
Capital expenditures 466,998 639,860
Depreciation expense (345,139) (315,614) oft
Total adjustments to GAAP basis 121,859 324,246
CHANGE IN NET ASSETS-GAAP BASIS 204,376 (267,439)
NET ASSETS,JANUARY 1 4,577,333 4,844,772
.r
NET ASSETS,DECEMBER 31 S 4.781.709 $ 4,577,333
r
f
a
I 4
(See independent auditor's report.)
- 100-
FIDUCIARY FUNDS