Loading...
CAFR (Year Ended December 31, 2001) oFk �. 49 � o 00 O _ 9 C � OU NT`s VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2001 VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2001 a.. Prepared by the Finance Department Darrell J. Langlois Finance Director/Treasurer VILLAGE OF OAK BROOK,.ILLINOIS TABLE OF CONTENTS Paye(s) INTRODUCTORY SECTION PrincipalOfficials............................................................................................................. i OrganizationChart............................................................................................................ Certificate of Achievement for Excellence in Financial Reporting.................................................................................. Letter of Transmittal From the Village Manager.............................................................. iv Letter of Transmittal From the Finance Director/Treasurer............................................. v-xii FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT......................................................................... 1-2 GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet- All Fund Types and Account Groups............................... 3-6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types........................................................ 7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -All Governmental Fund Types ...................... 8-9 •. Combined Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types....................................................... 10 Combined Statement of Cash Flows - All Proprietary Fund Types........................................................................................ 11-12 Combined Statement of Changes in Plan Net Assets - PensionTrust Funds................................................................................................... 13 Notes to Financial Statements...................................................................................... 14-38 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Funding Progress Illinois Municipal Retirement Fund........................................................................ 39 PolicePension Fund................................................................................................ 40 Firefighters' Pension Fund...................................................................................... 41 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 42 PolicePension Fund................................................................................................ 43 Firefighters' Pension Fund...................................................................................... 44 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) ` COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES GENERAL FUND Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ....................................................................... 45 Schedule of Revenues - Budget and Actual............................................................ 46 Schedule of Expenditures - Budget and Actual ...................................................... 47-55 SPECIAL REVENUE FUNDS Combining Balance Sheet....................................................................................... 56 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual...................................................................... 57-58 CAPITAL PROJECTS FUND - INFRASTRUCTURE FUND BalanceSheet.......................................................................................................... 59 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ....................................................................... 60 ENTERPRISE FUNDS Combining Balance Sheet 61-62 Combining Statement of Revenues, Expenses and Changes in RetainedEarnings ................................................................................................. 63 Combining Statement of Cash Flows...................................................................... 64-65 Waterworks System Fund Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual ........................................................... 66 Schedule of Operating Expenses - Budget and Actual....................................... 67 _ Schedule of Fixed Assets and Accumulated Depreciation................................. 68-69 Sports Core Fund _ Combining Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual ........................................................... 70 Schedule of Operating Revenues - Budget and Actual...................................... 71 Schedule of Operating Expenses - Budget and Actual....................................... 72-73 Schedule of Fixed Assets and Accumulated Depreciation................................. 74-75 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS AND SCHEDULES (Continued) INTERNAL SERVICE FUNDS Combining Balance Sheet....................................................................................... 76 Combining Statement of Revenues, Expenses and Changes in RetainedEarnings ................................................................................................. 77 Combining Statement of Cash Flows...................................................................... 78 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Self-Insurance Fund............................................................................................ 79 GarageFund....................................................................................................... 80 Capital Replacement Fund ................................................................................. 81 TRUST AND AGENCY FUNDS s Combining Balance Sheet - Trust and Agency Funds ............................................ 82 Combining Statement of Changes in Plan Net Assets - PensionTrust Funds.............................................................................................. 83 Statement of Changes in Plan Net Assets - Budget and Actual PolicePension Fund........................................................................................... 84 Firefighters' Pension Fund................................................................................. 85 GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets - by Source....................................................... 86 Schedule of General Fixed Assets - by Function and Activity............................... 87 Schedule of Changes in General Fixed Assets - by Function andActivity......................................................:.................................................... 88 STATISTICAL SECTION General Governmental Revenues by Source - LastTen Fiscal Years ..................................................................................................... 89 General Governmental Expenditures by Function - LastTen Fiscal Years ..................................................................................................... 90 Property Tax Levies and Collections - Last Ten Fiscal Years ..................................................................................................... 91 Assessed and Estimated Actual Value of Taxable Property - LastTen Levy Years....................................................................................................... 92 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) — Page(s) STATISTICAL SECTION (Continued) Property Tax Rates - Direct and Overlapping Governments - LastTen Levy Years....................................................................................................... 93 Ratio of Net General Obligation Bonded Debt to Equalized Assessed Value and Net General Bonded Debt Per Capita- LastTen Fiscal Years ..................................................................................................... 94 Schedule of Direct and Overlapping Bonded Debt .......................................................... 95 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures - Last Ten Fiscal Years................. 96 Schedule of Bond Coverage -Waterworks System Bonds - LastTen Fiscal Years ..................................................................................................... 97 _ DemographicStatistics..................................................................................................... 98 Property Value and Construction- LastTen Fiscal Years ..................................................................................................... 99 PrincipalTaxpayers .......................................................................................................... 100 Schedule of Insurance in Force......................................................................................... 101 MiscellaneousStatistics.................................................................................................... 102-103 INTRODUCTORY SECTION VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2001 Karen M. Bushy, Village President Linda K. Gonnella, Village Clerk BOARD OF TRUSTEES George T. Caleel Elaine Miologos John W. Craig Alfred P. Savino Susan Chase Korin VILLAGE MANAGER Stephen B. Veitch, Village Manager FINANCE DEPARTMENT Darrell J. Langlois, Finance Director/Treasurer —' i VILLAGE OF OAK BROOK ORGANIZATIONAL CHART December 31 , 2001 Citizens of Oak Brook Advisory Boards President and and Commissions Board of Trustees Village Clerk Electrical Commission Board of Fire & Police Commissioners Village Attorney Village Manager Treasurer/Budget Officer Hotel Convention and Visitors Committee Library Commission Plan Commission Safety Pathway Committee Zoning Board of Appeals =�Information Services Police Pension Board Firefighters' Pension Board rchasing Financial Public En ineerin and S vrts Communit Services Works Capital Projects Library___ �] EQ Fire Core Developmen t it Certificate of Achievement for Excellence in Financial T Reporting Presented to Village of Oak Brook, Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2000 �- 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. k�a' OFTHE"'Fy ti,fUNITED STATFS�iy W� AND w CANADA Pr sident �'•,CORPORATIDN�a — CNICA6= .s 00,` Executive Director ii1 Gt OF 0qk v P e9� a � O y G O Z 9C�COUNT" Village of March 7, 2002 Jak Brook —1200 Oak Brook Road President and Board of Trustees Oak Brook,IL 60523-2255 Village of Oak Brook Website L www.oak-brook.org Oak Brook, IL 60521 Administration L630.990.3000 President Bushy and Trustees: FAX 630.990.0876 I am pleased to present the Comprehensive Annual Financial Report for the Community Development Village of Oak Brook for the fiscal year ended December 31, 2001. Finance L630.990.3045 Director and Village Treasurer Darrell Langlois and his staff, in accordance with FAX 630.990.3985 applicable standards of the Government Accounting Standards Board and the LEngineering Government Finance Officers Association, have prepared this report. Department 630.990.3010 The Comprehensive Annual Financial Report is an important and legally essential LFAX 630.990.3985 document for the Village Board and the community. It is even more valuable Fire Department when viewed in conjunction with the Village's Five-Year Financial Plan. The 630.990.3040 Annual Report presents a"snapshot"' of the Village's financial condition at a FAX 630.990.2392 specific point in time; the Five-Year Plan presents a long range continuous view. Police Department Taken together, these documents present a complete picture of the present and 630.990.2358 future financial condition of the Village. 1 FAX 630.990.7484 The Village's continued financial health is reflected clearly in the Annual Public Works Financial Report. This strength is attributable to the Village Board's conservative Department 630.990.3044 financial policies, a tradition of careful financial planning, and rigorous day-to- 1 FAX 630.472.0223 day management of the Village's financial affairs. f Oak Brook The indicators of Oak Brook's financial condition continue to be positive. As you Public Library know, however, this situation can change quickly as a result of economic cycles, 600 Oak Brook Road State and Federal legislation and policy decisions of elected officials. Absent Lak Brook,IL 60523-2200 significant changes in Federal or State statutes or local policies, the information 630.990.2222 currently available suggests that the Village has an excellent opportunity to meet FAX 630.990.4509 the challenges presented in coming years while maintaining a financial condition -Oak Brook Sports Core of which its citizens can be very proud. LBath&Tennis Club Since y, 700 Oak Brook Road Oak Brook,IL 60523-4600 / / 630.990.3020 L FAX 630.990.1002 phen . Veitch Village Manager Golf Club L2606 York Road /sv ak Brook,IL 60523-4602 630.990.3032 FAX 630.990.0245 L iv LG�OF Oqq P d o y G rr C A 2 L 9CFOOUN7I March 7, 2002 Village of ��ak Brook President and Board of Trustees Village of Oak Brook 200 Oak Brook Road Oak Brook, Illinois 60523 Oak Brook,IL 60523-2255 Website www.oak-brook.org " The Comprehensive Annual Financial Report of the Village of Oak Brook for the Administration year ended December 31, 2001 is submitted herewith. Responsibility for both 1 630.990.3000 the accuracy of the information presented and the thoroughness and fairness of L FAX 630.990.0876 the presentation, including all disclosures, rests with the Village. I believe the Community data, as presented, is accurate in all material respects; that it is presented in a LDevelopment manner designed to fairly set forth the financial position and results of operations 630.990.3045 of the Village as measured by the financial activity of its various funds; and that FAX 630.990.3985 all disclosures necessary to enable the reader to gain the maximum LEngineering understanding of the Village's financial affairs have been included. Department 630.990.3010 The Comprehensive Annual Financial Report is presented in three sections: FAX 630.990.3985 introductory, financial and statistical. The introductory section, which is L unaudited, includes this transmittal letter, the Village's organizational chart and a Fire Department list of principal officials as of the end of the reporting period. The financial 630.990.3040 section includes the general purpose financial statements and the combining and LFAX 630.990.2392 individual fund and account group financial statements and schedules, as well as Police Department the auditor's report on the financial statements and schedules. The statistical 630.990.2358 section, which is unaudited, includes financial and demographic information, LFAX 630.990.7484 which is generally presented on a multi-year basis. Public Works This Report includes all funds and account groups of the Village. Generally Department accepted accounting principles require that the financial reporting entity include 630.990.3044 1 the rima government, 2 organizations for which the rima government FAX 630.472.0223 ( ) primary g ( ) g primary is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that 6- Oak Brook Public Library exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Based upon these criteria, there are no agencies or entities 600 Oak Brook Road whose financial data should be combined with and included in the general Lik Brook,IL 60523-2200 purpose financial statements of the Village. 630.990.2222 FAX 630.990.4509 ECONOMIC CONDITION AND OUTLOOK ak Bro k S orts Core The Village of Oak Brook is located about 15 miles west of the Chicago Loop, LBath&Tennis Club near the geographic center of the seven-county Chicago metropolitan area. 700 Oak Brook Road Excellent transportation links are provided to all parts of the greater metropolitan Oak Brook,IL 60523-4600 area by a network of tollwa s and federal and state highways which pass through FAX 630.990.1002 or near the Village. The Tri-State Tollway (1-294), running along the Village's eastern boundary, provides rapid access to the northern and southern suburbs, Golf Club and into Wisconsin and Indiana. The East-West Tollway (1-88), passing through L2606 York Road the Village's northern sector, joins the Eisenhower Expressway to the northeast, 3k Brook,IL 60523-4602 630.990.3032 FAX 630.990.0245 L 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 an high degree of economic stability. While the Illinois unemployment rate is approximately 5.4%, Du Page County has established an unemployment rate of 3.8%, significantly lower than the norm. According to the 1990 Census, over one-third of the households in Oak Brook are two-person, and over 62% of the occupants of the Village have resided in Oak Brook for over 10 years, indicating a strong level of population stability. Per capita income of Village residents in 1989 was $60,347 and the mean family income was $187,501. The Census also indicates that managerial, professional, and sales occupations are held by 74% of Village residents employed. 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 McDonalds 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 economy over time, have enabled the Village to continue to operate without a real estate tax due to the sales taxes generated from retail business activities. Changes are occurring that should enable the Village to continue to be successful into the 21St century. As the Village evolved, thoughtful zoning regulations, particularly in the area of building and bulk regulations, contributed to its early success. However, with increasing competition from other suburbs, some changes to these regulations are occurring which will allow for taller -- buildings and greater floor area ratios. This has had a positive impact on the Village as indicated by McDonald's commitment to remain in the Village well in to the 21St century, and in the renovation of several older office buildings, and construction or announcement of four major new buildings and a hotel. The future viability of the office building sector is extremely important as approximately 11% of the Village's sales tax revenue is generated by this sector. MAJOR INITIATIVES 2001 During 2001, substantial progress was made on three building projects that have been planned for over the last several years. A renovation and expansion of the Bath and Tennis Club Clubhouse facility was completed and fully operational during the fall of 2001. Most of the construction work for a completely new Library building was completed during 2001, with the grand opening being held in early 2002. Final design, site work, and the start of construction were accomplished on the Municipal Complex Project. This latter project includes a major addition to Village Hall that will house Fire Station #1, Fire Department administration, Community Development, Engineering, Information Services, the Communications Center, a multi-purpose training room and an Emergency Operating Center, and renovation of the Police ._ Department. The Village also completed the 2001 paving program that included major drainage work in the Timber Trails/Merry Lane neighborhood. Vi In the Future Included in the 2002 budget is the 2002 paving program, substantial construction work on the Municipal Complex project, replacement of all street signs within the Village, additional personnel in the public safety departments, the beginning of a conversion to an automated water meter system, and replacement of Fire Pumper 911. — In later years, the Five-Year Financial Plan includes continuation of the annual paving program, completion of the Municipal Complex project, improvements to the Village's safety pathway — system, significant maintenance expenses for Reservoir A & B, painting of the Village's elevated water storage tanks, and continued enhancements in the number of public safety personnel. FINANCIAL INFORMATION Accounting System and Budgetary Control — The Village's accounting records for general governmental operations are accounted for on a modified accrual basis of accounting. Revenues are recorded when available and measurable. _ Expenditures are recorded when services or goods are received and liabilities are incurred. Accounting records for the Village's Proprietary Funds and Pension Trust Funds are maintained on an accrual basis. The Village places a great deal of emphasis upon internal accounting controls as they affect the overall accounting system. In developing and evaluating the Village's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. — All internal control evaluations occur within the above framework. We believe that the Village's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. — Budgetary control is maintained through a system of monthly revenue and expenditure/expense 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. General Governmental Functions Revenues for general governmental functions as reported in the General Fund totaled $14,951,453 in 2001. vii — -- Percent Increase Of (Decrease) Source Amount Total Over 2000 Intergovernmental $10,328,662 69.08% $(1,269,023) Utility Taxes 2,174,184 14.54 1,271,409 Licenses and Permits 324,131 2.17 (299,727) Service Charges 374,409 2.50 (15,148) Fines and Penalties 300,311 2.01 76,849 Interest on Investments 952,571 6.37 (147,069) —" Miscellaneous 497,185 3.33 (1,170,356) $14.951.453 100.00% (1.553.0651 Intergovernmental revenue, primarily the general sales tax, is the major revenue source for the Village, producing 69.08% of current year General Fund revenues. The decrease noted above is attributed to decreased sales tax collections due to a slowing economy, relocation of the sales office of a significant taxpayer, the 9/11 event, and the effects of internet commerce. In addition, per capita distributions from the State were reduced due to a reduction in Oak Brook's population as a result of the 2000 census. Utility tax revenues increased due to an increase in the telecommunications tax rate from 2% to 3% effective January 1, 2001 (to offset the suspension of the Village's 1% infrastructure maintenance fee), and a further increase in the rate to 5% effective November 1, 2001 in order to address revenue needs of the General Fund. The decrease in Licenses and Permits was due to decreased building and electrical permit activity in 2001. The decrease in interest income is attributable to the Federal Reserve reducing short-term rates eleven times in 2001. The reduction in miscellaneous income is due -- to the suspension of the Village's 1% infrastructure maintenance fee effective January 1, 2001 and receipt of revenue in 2000 from the Intergovernmental Risk Management Agency (IRMA) due to a revision to IRMA's fund balance policy. The decrease in miscellaneous income is _ partially offset by receipt of a donation of $400,000 in 2001 from the Oak Brook Library Foundation for the new Library construction. The Village has never levied a real estate tax for general governmental functions. However, the 2000 assessed valuation of real property in the Village was $1,100,468,108, an increase of $54,482,983, or 5.21% over the prior year. Expenditures for general governmental purposes, grouped by function as required by generally accepted accounting principles, totaled $22,939,320 in the General Fund. Percent Increase Of (Decrease) Function Amount Total Over 2000 General Government $11,569,493 50.44% $6,454,781 Public Safety 8,935,397 38.95 718,750 Public Works 1,558,922 6.80 (77,987) Culture and Recreation 875,508 3.81 105,771) $22,939,320 100.00 $7,201,315 viii General Government expenditures increased due primarily to planned expenditures for costs associated with the new Library building construction and Municipal Complex project. Public — Safety expenditures increased due to salary increases, additional personnel, and cost increases in health insurance and state mandated pensions. Culture and Recreation expenditures increased due to planned staffing and materials enhancements in the Library. Motor Fuel Tax Fund The Motor Fuel Tax Fund was established to account for the revenue received from the State of Illinois for the local share of motor fuel tax collections. The State collects the tax on each gallon of fuel sold within the State of Illinois and returns a percentage back to each municipality based — on population. Motor Fuel Tax revenue from the State for the year ended December 31, 2001 was $256,870, a decrease of $19,287 over 2000. This decrease is due to a reduction in Oak Brook's population as a result of the 2000 census. In the future Motor Fuel Tax revenue will be _ used by the Village to partially finance street maintenance and improvement projects. Waterworks System Fund Selected data for the past year is presented in the following tabulation: Water Sales $3,219,862 Water Tap on Charges 88,477 Total Operating Revenues 3,421,386 Total Operating Expenses 3,930,927 — Operating Income (Loss) (509,541) Net Income (Loss) (1,035,111) Sports Core Fund The 2001 financial statements reflect the 215` year of operation of the 18-hole golf course and _ expanded operations of the Bath and Tennis Club. Operating revenues totaled $3,339,477 and operating expenses, excluding depreciation, totaled $3,519,931. Major department activity is summarized as follows: Revenues Golf Club $1,986,828 59.50% — Food and Beverage 1,068,354 31.99 Bath & Tennis Club 284,295 8.51 $3,339,477 100.00 Operating Expenses _ Golf Club $1,366,873 35.03% Food and Beverage 1,334,981 34.21 _ Bath & Tennis Club 818,077 20.96 Depreciation 382,498 9.80 $3,902,429 100.00 ix During 2001, the Sports Core Fund recognized a gain on sale of fixed assets of$752,309 due to the sale of approximately 4.2 acres of Sport Core property to DuPage County for the widening of 31st Street. Pensions Employees of the Village of Oak Brook participate in one of three pension plans. They are: (1) the Police Pension Fund of the Village of Oak Brook, covering the Village's sworn personnel in the Police Department; (2) the Firefighters' Pension Fund of the Village of Oak Brook, covering the Village's sworn personnel in the Fire Department; and (3) the Illinois Municipal Retirement Fund, which covers all of the remaining Village employees who are normally scheduled to work in excess of 1,000 hours per year on a regular basis. Illinois Municipal Retirement Fund employees also participate in Social Security. Based on the most recent actuarial studies the IMRF was 109.0% funded, the Police Pension Fund was 93.8% funded, and the Firefighters' Pension Fund was 88.2%funded. General Fixed Assets The general fixed assets of the Village are those fixed assets used in the performance of general governmental functions. These exclude the fixed assets of the Enterprise and Internal Service Funds. As of December 31, 2001, the general fixed assets of the Village amounted to $17,091,528. This amount represents the original cost of the assets and is considerably less than their current value. Depreciation of general fixed assets is properly not recognized in the Village's governmental fund types. The Village does not capitalize infrastructure projects in the General Fixed Asset Account Group. Debt Administration As a means of financing, bonding has been used on three occasions in the Village's history. In 1973 and 1976, revenue bonds were issued for the purchase of the water system from the Oak Brook Utility Company and for improvements and expansion of the system. After receiving referendum approval, general obligation bonds were issued in 1977 for the purchase of the Sports Core and improvements to the Golf Club. All of the bonds have since been retired, and the Village is now in the enviable position of having no bonded debt outstanding. _ Village Board policy states that a tax on real property would be imposed only to meet financial obligations which have been approved by the voters at referendum. In accordance with this policy, the latest edition of the Five Year Financial Plan does not contemplate issuing debt that is supported by real estate taxes. The Village has, however, occasionally issued debt that is not supported by real estate taxes. In 1999, installment contract certificates were issued in order to finance construction of an irrigation system at the Golf Club. Repayment of this installment contract is anticipated to come from future Sports Core Fund revenues. In 2000, installment contract certificates of $1.8 million were issued in order to finance the Bath and Tennis Club clubhouse expansion and renovation. Proceeds from the sale of land to Du Page County for the widening of 31s` Street were used to call $630,000 of the certificates during 2001, with the remainder being repaid from Sports Core Fund revenues. Both certificate issues are considered obligations of the Sports Core Fund. x During 2001, the Village issued installment contract certificates totaling $4.0 million in order to partially fund the Municipal Complex project. These certificates were rated Aa2 by Moody's _ Investor Service, Inc., a very strong rating since there is no real estate tax pledge for the repayment of the certificates. Sales tax revenues will be utilized to repay these certificates. Based on the latest Five-Year Financial Plan, no additional debt issues are anticipated. Cash Management It is the policy of the Village of Oak Brook to invest idle cash and increase investment income by the efficient use of money market accounts, certificates of deposit, the Illinois Funds, the Illinois Metropolitan Investment Fund, and U.S. government and agency securities. At December 31, 2001 the Village's investments, exclusive of the Pension Trust Funds, were distributed as follows: Illinois Funds 66.30% ._ U. S. Government and Agency Securities 5.48 Illinois Metropolitan Investment Fund 24.39 Certificates of Deposit 3.83 _ 100.00 For the year ended December 31, 2001 the Village received $1,594,674 in interest income. Risk Management The Village of Oak Brook has a risk management program in place. For employee benefits, resources are accumulated in the Self-Insurance Fund in order to fund health and dental insurance claims. Insurance coverage for liability, property damage, and workmen's compensation is maintained through the Intergovernmental Risk Management Agency (IRMA) for all claims greater than $1,000. Various risk control techniques, including employee safety and accident prevention training, have been implemented to minimize accident related losses. OTHER INFORMATION Statutes require an annual audit to be performed on the books of account, financial records, and transactions of all administrative departments of the Village by independent certified public accountants selected by the Board of Trustees. This requirement has been complied with and the auditor's opinion has been included in this Report. — Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Oak Brook for its Comprehensive Annual Financial Report for the year ended December 31, 2000. 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. Xi "- A Certificate of Achievement is valid for a period of one year only. The Village has successfully obtained the Certificate of Achievement for 24 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. Acknowledgments The preparation of this Report could not be accomplished without the efficient and dedicated services of the entire staff of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this Report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Darrell J. L nglois Finance Director/Treasurer xii FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT MEMBERS OF AMERICAN INSTITUTE OF Sikich Gardner & Co, LLP CERTIFIED PUBLIC ACCOUNTANTS Accountants & Consultants ILLINOIS CPA SOCIETY 998 Corporate Boulevard Aurora, IL 60504 A Member of Sikich Group,LLC INDEPENDENT AUDITOR'S REPORT •- The Honorable President Members of the Board of Trustees Village of Oak Brook Oak Brook, Illinois We have audited the accompanying general purpose financial statements of the Village of Oak Brook, Illinois as of and for the year ended December 31, 2001, as listed in the table of contents. These general purpose financial statements are the responsibility of the Village of Oak Brooks' management. Our responsibility is to express an opinion on these general purpose 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above, present fairly, in all material respects, the financial position of the Village of Oak Brook, Illinois as of December 31, 2001, and the results of its operations and cash flows of its proprietary fund types 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 general purpose financial statements taken as a whole. The accompanying financial information listed as combining, individual fund and account group statements and schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the Village of Oak Brook, Illinois. The information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. — - 1 - — The required supplementary information listed in the table of contents is not a required part of the general purpose financial statements but is 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 general purpose financial statements, and, accordingly, we express no opinion thereon. i Aurora, Illinois March 7, 2002 — - 2 - GENERAL PURPOSE FINANCIAL STATEMENTS (This page is intentionally left blank.) VILLAGE OF OAK BROOK,ILLINOIS COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS — December 31,2001 Governmental Fund Types Special Capital General Revenue Projects ASSETS Cash and investments $ 14,472,498 $ 1,263,746 $ 1,901,910 Receivables Sales taxes 2,444,594 - - Utility taxes 444,386 - 83,806 Accounts 110,188 - - Allotments - 20,314 - Accrued interest 45,510 2,908 4,875 Other 42,334 25,397 53,096 Due from other funds 1,558,375 - - Advances to other funds 1,015,000 - - Inventories 1,823 - - Restricted assets, cash and investments - - - Fixed assets,net of accumulated depreciation - - - Other assets,water purchase rights - - - Amount to be provided for retirement of general long-term debt - - - TOTAL ASSETS $ 20,134,708 $ 1,312,365 $ 2,043,687 - J - Fiduciary Account Groups Proprietary Fund Types Fund Types General General Total Internal Trust and Fixed Long-Term (Memorandum Enterprise Service Agency Assets Debt Only) $ 4,834,460 $ 3,478,087 $ 37,747,222 $ - $ - $ 63,697,923 - - - - - 2,444,594 - 26,736 - - - 554,928 321,101 - - - - 431,289 - - - - - 20,314 13,440 7,057 246,406 - - 320,196 36,677 52 - - - 157,556 - - - - - 1,558,375 - - - - - 1,015,000 185,537 35,175 - - - 222,535 188,045 - - - - 188,045 24,333,045 1,717,876 - 17,091,528 - 43,142,449 1,537,873 - - - - 1,537,873 - - - - 3,962,195 3,962,195 $ 31,450,178 $ 5,264,983 $ 37,993,628 $ 17,091,528 $ 3,962,195 $ 119,253,272 (This statement is continued on the following pages.) -4- Fiduciary Account Groups Proprietary Fund Types Fund Types General General Total Internal Trust and Fixed Long-Term (Memorandum Enterprise Service Agency Assets Debt Only) $ 468,193 $ 16,489 $ 10,313 $ - $ - $ 1,974,455 51,361 4,136 - - - 309,577 14,218 - - - - 14,218 54,320 8,434 - - 152,195 786,435 - 192,700 - - - 192,700 45,500 - - - - 827,981 25,384 - - - - 70,721 1,558,375 - - - - 1,558,375 1,015,000 - - - - 1,015,000 1,710,000 - - - 3,810,000 5,520,000 73,880 - - - - 73,880 5,016,231 221,759 10.313 - 3,962,195 12,343,342 - - - 17,091,528 - 17,091,528 11,025,590 - - - - 11,025,590 0 188,045 - - - - 188,045 15,220,312 5,043,224 - - - 20,263,536 - - - - - 1,823 - - 1,015,000 - - 1,497,126 - - - 401,198 37,983,315 - - 37,983,315 - - - - 17,442,769 26,433,947 5,043,224 37,983,315 17,091,528 - 106,909,930 $ 31.450,178 $ 5,264,983 $ 37,993,628 $ 17,091,528 $ 3,962,195 $ 119,253,272 See accompanying notes to financial statements. -6- VILLAGE OF OAK BROOK,ILLINOIS COMBINED STATEMENT OF REVENUES,EXPENDITURES AND .. CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES For the Year Ended December 31,2001 Am Total Special Capital (Memorandum General Revenue Projects Only) REVENUES Intergovernmental $ 10,328,662 $ 296,042 $ 40,338 $ 10,665,042 Utility taxes 2,174,184 - 1,177,590 3,351,774 Hotel/motel taxes - 308,101 - 308,101 Licenses and permits 324,131 - - 324,131 Charges for services 374,409 - - 374,409 Fines and penalties 300,311 - - 300,311 Investment income 952,571 54,078 128,915 1,135,564 Donations 400,000 - - 400,000 Miscellaneous 97,185 - - 97,185 Total revenues 14,951,453 658,221 1,346,843 16,956,517 EXPENDITURES Current General government 11,569,493 - - 11,569,493 Public safety 8,935,397 40,896 - 8,976,293 Public works 1,558,922 - - 1,558,922 Culture and recreation 875,508 369,516 - 1,245,024 Capital outlay - - 2,223,188 2,223,188 _ Total expenditures 22,939,320 410,412 2,223,188 25,572,920 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (7,987,867) 247,809 (876.345) (8,616,403) OTHER FINANCING SOURCES(USES) Operating transfers in 781,395 - 62,025 843,420 Operating transfers(out) (190,965) (62,025) - (252,990) Installment contract proceeds 3,968,310 - - 3,968,310 Sale of fixed assets 398,937 - - 398,937 Total other financing sources(uses) 4,957,677 (62,025) 62,025 4,957,677 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (3,030,190) 185,784 (814,320) (3,658,726) .. FUND BALANCES,JANUARY 1 20,372,085 952,428 2,725,747 24,050,260 Prior period adjustment (58,753) - 25,135 (33,618) FUND BALANCES,JANUARY 1,RESTATED 20,313,332 952,428 2,750,882 24,016,642 FUND BALANCES,DECEMBER 31 $ 17,283,142 $ 1,138,212 $ 1,936,562 $ 20,357,916 See accompanying notes to financial statements. -7- - (This page is intentionally left blank.) VILLAGE OF OAK BROOK,ILLINOIS COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL- ALL GOVERNMENTAL FUND TYPES For the Year Ended December 31,2001 ..r General Variance Favorable a Budget Actual (Unfavorable) REVENUES Intergovernmental $ 13,903,240 $ 10,328,662 $ (3,574,578) -� Utility taxes 1,750,000 2,174,184 424,184 Hotel/motel taxes - - - Licenses and permits 502,525 324,131 (178,394) Charges for services 378,700 374,409 (4,291) Fines and penalties 227,300 300,311 73,011 Investment income 900,000 952,571 52,571 Donations - 400,000 400,000 Miscellaneous 145,565 97,185 (48,380) Total revenues 17,807,330 14,951,453 (2,855,877) EXPENDITURES Current General government 12,930,680 11,569,493 1,361,187 Public safety 9,390,425 8,935,397 455,028 Public works 1,947,825 1,558,922 388,903 Culture and recreation 1,072,965 875,508 197,457 Capital outlay - - - „r Total expenditures 25,341,895 22,939,320 2,402,575 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (7,534,565) (7,987,867) (453,302) OTHER FINANCING SOURCES(USES) .� Operating transfers in 2,294,215 781,395 (1,512,820) Operating transfers(out) (190,965) (190,965) - Installment contract proceeds 4,000,000 3,968,310 (31,690) Sale of fixed assets 370,000 398,937 28,937 Total other financing sources(uses) 6,473,250 4,957,677 (1,515,573) EXCESS(DEFICIENCY)OF REVENUES ^ AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (1,061,315) (3,030,190) $ (1,968,875) FUND BALANCES,JANUARY 1 20,372,085 Prior period adjustment (58,753) FUND BALANCES,JANUARY 1,RESTATED 20,313,332 FUND BALANCES,DECEMBER 31 $ 17,283,142 AIN -8- •- Special Revenue Capital Projects Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 300,100 $ 296,042 $ (4,058) $ 404,400 $ 40,338 $ (364,062) - - - 1,006,000 1,177,590 171,590 352,000 308,101 (43,899) - - - 49.750 54,078 4,328 66,000 128,915 62,915 701,850 658,221 (43,629) 1,476,400 1.346,843 (129,557) 41,150 40,896 254 - - - 370,000 369,516 484 - - - - - - 3,299,100 2,223,188 1,075,912 _ 411,150 410.412 738 3,299,100 2,223,188 1,075,912 290,700 247,809 (42,891) (1,822,700) (876,345) 946,355 - - - 66,000 62,025 (3,975) +► (66,000) (62,025) 3,975 - - rl (66,000) (62,025) 3,975 66,000 62,025 (3,975) $ 224,700 185,784 $ (38,916) $ (1,756,700) (814,320) $ 942,380 952,428 2,725,747 - 25,135 952,428 2,750,882 $ 1,138,212 $ 1,936,562 See accompanying notes to financial statements. _` -9- VILLAGE OF OAK BROOK,ILLINOIS COMBINED STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES For the Year Ended December 31,2001 Total Internal (Memorandum Enterprise Service Only) OPERATING REVENUES Charges for services $ 6,700,715 $ 2,373,643 $ 9,074,358 Miscellaneous 60,148 - 60,148 Total operating revenues 6,760,863 2,373,643 9,134,506 OPERATING EXPENSES Operations 6,934,700 370,754 7,305,454 - Claims and insurance - 1,413,763 1,413,763 Miscellaneous - 8,053 8,053 Depreciation and amortization 898,656 318,633 1,217,289 Total operating expenses 7,833,356 2,111,203 9,944,559 OPERATING INCOME(LOSS) (1,072,493) 262,440 (810,053) .r NONOPERATING REVENUES (EXPENSES) Investment income 296,088 163,022 459,110 Utility taxes - 28,346 28,346 Gain on sale of fixed assets 752,309 - 752,309 Interest expense (117,079) - (117,079) Total nonoperating revenues (expenses) 931,318 191,368 1,122,686 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (141,175) 453,808 312,633 OPERATING TRANSFERS Operating transfers in 190,965 - 190,965 Operating transfers(out) (761,000) (20,395) (781,395) Total operating transfers (570,035) (20,395) (590,430) NET INCOME(LOSS) (711,210) 433,413 (277,797) RETAINED EARNINGS,JANUARY 1 16,119,567 4,609,811 20,729,378 r RETAINED EARNINGS,DECEMBER 31 $ 15,408,357 $ 5,043,224 $ 20,451,581 See accompanying notes to financial statements. - 10 - (This page is intentionally left blank.) VILLAGE OF OAK BROOK,ILLINOIS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 2001 Total Internal (Memorandum Enterprise Service Only) ... CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ (1,072,493) $ 262,440 $ (810,053) Depreciation and amortization 898,656 318,633 1,217,289 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable 12,839 (21,914) (9,075) IRMA surplus credit 126,431 - 126,431 •- Other receivable 5,780 - 5,780 Inventories (19,102) 6,620 (12,482) Accounts payable 155,590 (11,065) 144,525 Accrued payroll and compensated absences 24,511 2,551 27,062 Claims payable - 18,700 18,700 Deposits payable (2,455) - (2,455) Deferred revenue 25,384 - 25,384 Net cash from operating activities 155,141 575,965 731,106 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Utility taxes - 28,346 28,346 Borrowings from other funds 252,650 - 252,650 Operating transfers in 190,965 - 190,965 Operating transfers(out) (761,000) (20,395) (781,395) Net cash from non-capital financing activities (317,385) 7,951 (309,434) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets (2,142,709) (271,888) (2,414,597) Proceeds from sale of fixed assets 954,868 - 954,868 Principal paid on note payable (59,011) - (59,011) Principal paid on installment contract payable (845,000) - (845,000) Principal paid on capital lease payable (33,501) - (33,501) Interest paid (121,457) - (121,457) Net cash from capital and related financing activities (2,246,810) (271,888) (2,518,698) (This statement is continued on the following page.) - 11 - VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF CASH FLOWS(Continued) ALL PROPRIETARY FUND TYPES For the Year Ended December 31,2001 Total Internal (Memorandum Enterprise Service Only) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments $ (2,417) $ - $ (2,417) Sale of investments 1,043,441 565,081 1,608,522 Interest received 316,172 175,125 491,297 �. Net cash from investing activities 1,357,196 740,206 2,097,402 NET INCREASE(DECREASE)IN t.. CASH AND CASH EQUIVALENTS (1,051,858) 1,052,234 376 CASH AND CASH EQUIVALENTS, a„ JANUARY 1 4,525,606 1,619,650 6,145,256 CASH AND CASH EQUIVALENTS, DECEMBER 31 S 3,473,748 $ 2,671,884 S 6,145,632 .w CASH AND INVESTMENTS ow Cash and cash equivalents $ 3,473,748 $ 2,671,884 $ 6,145,632 Investments(including$188,045 of restricted assets) 1,548,757 806,203 2,354,960 TOTAL CASH AND INVESTMENTS $ 5,022,505 $ 3,478,087 $ 8,500,592 See accompanying notes to financial statements. - 12- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUNDS For the Year Ended December 31, 2001 — ADDITIONS Contributions Employer contributions $ 629,037 a Employee contributions 404,036 Total contributions 1,033,073 Investment income Net appreciation (depreciation) in fair value of investments (1,009,538) Interest 1,113,233 •.. Total investment income 103,695 Less investment expense (80,368) Net investment income 23,327 Total additions 1,056,400 _ DEDUCTIONS Benefits and refunds 1,504,450 Ak Administrative 67,423 Total deductions 1,571,873 NET INCREASE (DECREASE) (515,473) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 38,498,788 December 31 $ 37,983,315 See accompanying notes to financial statements. - 13 - VILLAGE OF OAK BROOK, ILLINOIS low NOTES TO FINANCIAL STATEMENTS December 31, 2001 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Oak Brook, Illinois (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. - 14 - 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 and account groups 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. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds are classified into the following categories: governmental,proprietary, and fiduciary. Each category, in turn, is divided into separate "fund types." 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 fixed 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. 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 to 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 Village (internal service funds). - 15 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) r 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 Village. When ._ these assets are held under the terms of a formal trust agreement, a pension trust is used. C. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current ftw assets. All proprietary funds and pension trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Proprietary fund-type fund equity(i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined, and"available"means collectible within the current period. A sixty-day availability period is used for revenue recognition for most governmental fund revenues. Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due. 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. - 16 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Basis of Accounting (Continued) The accrual basis of accounting is utilized by proprietary fund types and pension trust funds. Under this method, revenues and additions are recorded when earned and expenses and deductions are recorded at the time liabilities are incurred. The Village reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" 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 combined balance sheet and revenue is recognized. d. Cash and Investments Cash and Cash Equivalents ^ For purposes of the statement of cash flows, the Village's proprietary fund types 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. e. Short-Term Interfund Receivables Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" or"due to other funds" on the balance sheet. Short-term interfund loans, if any, are classified as "interfund receivables/payables." - 17 - _ VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) f. Advances to Other Funds Noncurrent portions of long-term interfund loan receivables are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and, therefore, are not available for appropriation. g. 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. h. Intangible Assets - Water Purchase Rights 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 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. i. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. — - 18 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i. Fixed Assets (Continued) Public domain("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the Village. Assets in the general fixed assets account group are not depreciated. Depreciation of buildings, equipment, water/sewer systems and vehicles in the proprietary fund types is computed using the straight-line method. J,. Compensated Absences Vested or accumulated vacation leave including related social security and medicare that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation, sick leave or compensatory leave that are not expected to be liquidated with expendable available financial resources (if any) are reported in the general long-term debt account group. No expenditure is reported for these amounts. Vested or accumulated vacation, sick or compensatory leave of proprietary funds 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. Long-Term Obligations Long-term debt is recognized as a liability of a governmental fund when due or when resources have been accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. Long-term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. MOM s - 19 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers, or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. M. Interfund Transactions Quasi-external transactions 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. s.. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. ^- n. Memorandum Only - Total Columns Total columns on the general purpose financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. `- o. GASB Pronouncements The Village has elected, under the provisions of GASB Statement 20,Accounting .. and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements and all FASB Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) issued on or before November 30, 1989, unless they conflict with or contradict GASB L pronouncements. "" - 20 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. LEGAL COMPLIANCE AND ACCOUNTABILITY a. Budgets The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1. All departments of the Village submit budget requests to the Village Manager _ so that a budget may be prepared. 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 accounting principles. 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. -, EWA - 21 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) i.. 2. LEGAL COMPLIANCE AND ACCOUNTABILITY (Continued) b. Deficit Fund Balance/Retained Earnings of Individual Funds The following funds had a deficit in fund balance/retained earnings as of December 31, 2001: Deficit Fund Balance .. Sports Core $ 635,837 Self Insurance 27,652 3. DEPOSITS AND INVESTMENTS •- The Village maintains a cash and investment pool that is available for use by all funds, except the pension trust funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and investments." In addition, investments are separately ,. held by several of the Village's funds. As required by State statute, the deposits and investments of the pension trust funds are held separately from those of other funds. Cash on hand of$3,901 has been excluded from the amounts shown below. Permitted Deposits and Investments Statutes authorize the Village to make deposits/invest 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 agreements 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 The Illinois Funds. Pension funds 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, and Illinois insurance company general and separate accounts, mutual funds and equity securities. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund's share price, the price for which the investment could be sold. Illinois Metropolitan Investment Fund(IMET) is a non-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. - 22 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) MM 3. DEPOSITS AND INVESTMENTS (Continued) a. Deposits At year-end, the carrying amount of the Village's deposits with financial institutions totaled $1,159,873 and the bank balances totaled $1,183,772. The bank balance can .. be categorized as follows: r Bank Balances Category 1 Deposits covered by federal depository insurance, or by collateral held by the Village,or its agent, in the Village's name. S 1,183,772 Category 2 Deposits covered by collateral held by the pledging financial institution's trust department,or its agent, in the Village's name. - — Category 3 Deposits covered by collateral held by the pledging financial _ institution, or its trust department, or its agent but not in the Village's name, and deposits which are uninsured and uncollateralized. - TOTAL DEPOSITS S 1,183,772 b. Investments The Village's investments are categorized to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the — Village's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the Village's name, and uninsured, unregistered investments. i - 23 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. DEPOSITS AND INVESTMENTS (Continued) b. Investments (Continued) Fair Value Category 1 2 3 Totals U.S. government securities $ 4,900,638 $ - $ 4,343,278 $ 9,243,916 U.S. agency securities 4,624,181 - 7,519,445 12,143,626 State and local obligations - - 835,562 835,562 Negotiable certificates of deposit 1,476,000 - - 1,476,000 S11,000,819 S - $12,698,285 23,699,104 *Mutual Funds 13,537,159 *The Illinois Funds 17,742,615 +-� *Illinois Metropolitan Investment Fund 6,371,991 *Life Insurance Contracts 652,075 *Money Market Mutual Funds 719,250 TOTAL INVESTMENTS 562,722.194 *(Not Subject to Custodial Credit Risk Categorization) The pension trust funds own 100% of the investments in Category 3. The above deposits (including cash on hand) of$1,163,774 and investments of $62,722,194 totaling $63,885,968 are reported in the financial statements as follows: Cash and investments $ 63,697,923 Restricted assets, cash and investments 188,045 TOTAL S 63,885,968 4. RECEIVABLES - TAXES Property taxes for 2001 attach as an enforceable lien on January 1, 2001, on property values assessed as of the same date. Taxes are levied by December of the fiscal year(by passage of a Tax Levy Ordinance). Tax bills are prepared by the County and issued on or about February 1, 2002 and August 1, 2002 and are payable in two installments, on or about March 1, 2002 and September 1, 2002. 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. - 24 - am VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. FIXED ASSETS a. General Fixed Assets Account Group The following is a summary of changes in the general fixed assets account group during the fiscal year: Balances Additions Retirements Balances January 1 and Transfers and Transfers December 31 Land $ 616,829 $ - $ - $ 616,829 Building and equipment 4,675,215 43,923 72,469 4,646,669 Other equipment 2,008,782 96,079 .33,640 2,071,221 Computer equipment 1,348,605 195,053 18,545 1,525,113 Construction in progress 1,359,591 6,872,105 - 8,231,696 TOTAL GENERAL FIXED ASSETS $ 10,009,022 $ 7,207,160 $ 124,654 $ 17,091,528 —. b. Proprietary Fixed Assets The following is a summary of proprietary fund-type fixed assets as of the date of this report: Internal Enterprise Service Land and improvements $ 11,194,682 $ - Building and improvements 6,814,129 - Automotive equipment - 4,000,346 Equipment 2,189,980 136,477 Waterworks system 15,546,631 - Construction in progress 110,299 - 35,855,721 4,136,823 Less accumulated depreciation 11,522,676 2,418,947 TOTAL $ 24,333,045 $ 1,717,876 In proprietary funds, the following estimated useful lives are used to compute depreciation: Estimated Useful Lives Building and improvements 40 years Equipment 4-40 years Waterworks system 15-40 years Automotive equipment 2-30 years - 25 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) L.. 5. FIXED ASSETS (Continued) C. Construction Contracts The Village has entered into contracts for the construction or renovation of various facilities as follows: Project Expended Authorizations to Date Commitment Municipal Complex $ 9,499,511 $ 3,865,205 $ 5,634,306 New Library 5,699,384 4,700,613 998,771 Bath and Tennis Clubhouse 1,992,056 1,982,111 9,945 2001 Paving Project 1,707,390 1,635,442 71,948 2001 Watermain and Drainage 132,661 110,185 22,476 New Ambulance 148,484 - 148,484 New Library Landscaping 61,121 48,003 13,118 TOTALS S 19,240,607 512,341,559 $ 6,899,048 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. The Village assumes the first $1,000 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. - 26 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. RISK MANAGEMENT (Continued) In addition, the Village provides medical and dental coverage to Village employees, their dependents and retirees through a limited self-insurance program. The Village is self- insured for the first $50,000 per individual for medical claims up to a maximum limit of $1,688,389 for all individuals. Commercial insurance is carried for amounts in excess of the self-insured amounts nor did settlements 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 based upon equivalent premium estimates. Liabilities are reported when it is probable that a loss has 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 $192,700. .., A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2001 2000 CLAIMS PAYABLE,BEGINNING OF YEAR $ 174,000 $ 119,700 Claims incurred and changes in estimate 1,190,867 1,373,512 Claims paid (1,172,167) (1,319,212) CLAIMS PAYABLE, END OF YEAR $ 192,700 $ 174,000 7. LONG-TERM DEBT Notes Payable The Village has issued a note payable to provide funds for the acquisition of capital assets for proprietary activities. This note, therefore, is reported in the proprietary fund. The note payable, which was retired during the year, is as follows: Fund Debt Balance, Balance, Issue Retired by January I Issuances Retirements December 31 Sports Core Tennis Dome Refunding Notes due in monthly payments of$2,806 "' through October 28,2001 (at which time the remainder is due)including interest at Sports 4.81%,unsecured. Core S 59,011 $ S 59,011 S - - 27 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) 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 Debt Balance, Balance, 'w Issue Retired by January 1 Issuances Retirements December 31 General Fund Certificates,Series 1999 dated September 24, 1999,4.93%interest bearing contract,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 $ 755,000 $ S 70,000 S 685,000 General Fund Certificates,Series 2000 dated December 1,2000,4.96%interest for 2001 through 2007 and 5.15%interest for 2008 through 2010,due in annual installments ranging from$145,000 to $220,000 through December 1,2010, interest payable June I and December 1 of each year,secured by sales and use taxes. Installments due in 2008 through 2010 were Sports �• called in 2001. Core 1,800,000 775,000 1,025,000 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 - 4,000,000 190,000 3,810,000 TOTAL $2,555,000 $4,000,000 $1,035,000 $ 5,520,000 _ - 28 - i VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) mum 7. LONG-TERM DEBT (Continued) Capital Lease Payable The Village has entered into a capital lease payable during fiscal year 2000 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: _ Fund Debt Balance, Balance, Issue Retired by January I Issuances Retirements December 31 �a Dated March 15,2000,interest rates ranging from 6.45%to 6.50%,due in monthly installments of$6,618 from May 15 through October 15 of each year i through October 25,2004,interest payable monthly from May 15 through October 15 Sports of each year,secured by equipment. Core $ 107,381 $ - $ 33,501 $ 73,880 Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Fiscal Year Installment Contracts _ Ending Payable Capital Lease Payable Totals December 31, Principal Interest Principal Interest Principal Interest 2002 $ 420,000 $ 262,492 $ 35,743 $ 3,967 $ 455,743 $ 266,459 2003 440,000 242,335 38,137 1,574 478,137 243,909 2004 460,000 221,221 - - 460,000 221,221 2005 485,000 199,149 - - 485,000 199,149 2006 505,000 175,872 - - 505,000 175,872 2007 530,000 151,637 - - 530,000 151,637 2008 355,000 126,214 - - 355,000 126,214 2009 375,000 109,505 - - 375,000 109,505 2010 285,000 91,650 - - 285,000 91,650 2011 300,000 78,255 - - 300,000 78,255 2012 315,000 64,155 - - 315,000 64,155 2013 330,000 49,350 - - 330,000 49,350 2014 350,000 33,840 - - 350,000 33,840 2015 370,000 17,390 - - 370,000 17,390 TOTALS $ 5,520,000 $ 1,823,065 S 73,880 S 5,541 S 5,593,880 S 1,828,606 - 29 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) Change in Long-Term Liabilities During the fiscal year, the following changes occurred in liabilities reported in the general long-term debt account group: Balances January 1, Balances i- Restated Additions Reductions December 31 Installment contracts payable $ - $ 4,000,000 $ 190,000 $ 3,810,000 Compensated absences 131,490 20,705 - 152,195 Net pension obligation - - - - TOTAL GENERAL LONG-TERM ` DEBT ACCOUNT GROUP $ 131,490 S 4,020,705 $ 190.000 S 3.962,195 The opening balance was restated by an increase in compensated absences payable of $49,181 and a decrease in the net pension obligation of$103,479. Legal Debt Margin 2000 assessed valuation(latest information available) S 1.100,468,108 Legal debt limit- 8.625%of assessed valuation $ 94,915,374 Amount of debt applicable to debt limit 5,520,000 LEGAL DEBT MARGIN $ 89,395,374 8. INTERFUND ASSETS/LIABILITIES Individual fund interfund receivable and payable balances as of December 31, 2001 are as follows: Due From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 1,558.375 Advance From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 1,015,000 - 30 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. COMMITMENTS 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 2002 $ 842,000 2003 842,000 2004 842,000 2005 842,000 2006 842,000 Thereafter 15,156,000 TOTAL $ 19,366,000 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. SEGMENT INFORMATION - ENTERPRISE FUNDS The Government maintains the following enterprise funds which are intended to be self- supporting through user fees charged for services to the public. Financial segment information as of the date of this report and for the fiscal year is as follows: Waterworks System Sports Core Totals Operating revenues $ 3,421,386 $ 3,339,477 $ 6,760,863 Depreciation and amortization expense 516,158 382,498 898,656 Operating income(loss) (509,541) (562,952) (1,072,493) Operating transfers in - 190,965 190,965 Operating transfers out 761,000 - 761,000 Net income(loss) (1,035,111) 323,901 (711,210) - 31 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. SEGMENT INFORMATION - ENTERPRISE FUNDS (Continued) Waterworks System Sports Core Totals Property,plant and equipment Additions $ 140,261 $ 2,117,250 $ 2,257,511 Deletions - 634,847 634,847 Total assets 16,360,133 15,090,045 31,450,178 Net working capital 4,689,239 (1,776,118) 2,913,121 Bonds and other long-term liabilities payable from operating revenues - 2,798,880 2,798,880 Total equity 16,044,194 10,389,753 26,433,947 11. CONTRIBUTED CAPITAL During the fiscal year, changes occurred in contributed capital as follows: Enterprise Increases $ - Decreases - Net increase (decrease) - CONTRIBUTED CAPITAL,JANUARY 1 11,025,590 CONTRIBUTED CAPITAL, DECEMBER 31 S 11,025,590 12. 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. 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. '� - 32 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. CONTINGENT LIABILITIES (Continued) 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. 13. PRIOR PERIOD ADJUSTMENT A prior period adjustment was recorded to implement GASB Statement No. 33, Accounting for Nonexchange Transactions, as of January 1, 2001. This resulted in a decrease in fund balance of$58,753 in the general fund and an increase in the fund balance of$25,135 in the capital projects funds. 14. DEFINED BENEFIT PENSION PLANS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund(IMRF), an agent-multiple-employer public 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. None of the pension plans issue separate reports on the pension plans. However, IMRF does issue 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 r. 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, 2000 was 7.41% of covered payroll. - 33 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) 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, 2001 the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits .� and terminated employees entitled to benefits but not yet receiving them 22 Current employees Vested 29 Nonvested 14 TOTAL 65 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 2.00% 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 benefit 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 be paid upon reaching the age of at least 55 years, by 3.00% of the original pension and 3.00% compounded annually each January 1 thereafter. 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. 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, 2001, the Village's contribution was 11.49% of covered payroll. '— - 34 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan i Fire sworn personnel are covered by the Firefighters' 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 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2001, the Firefighters' Pension Plan _ membership consisted of- Retirees £Retirees and beneficiaries currently receiving benefits _ and terminated employees entitled to benefits but not yet receiving them 25 Current employees _ Vested 17 Nonvested 18 i TOTAL 60 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 covered employee 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 paid upon reaching the age of at least 55 by 3.00% of the original pension and 3.00%compounded each _ January 1 thereafter. Covered employees are required to contribute 8.455% 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 accumulated interest. 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, 2001, the Village's contribution was -• 17.76% of covered payroll. - 35 - r VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. 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 is not available. Plan Organization Amount Police Pension Vanguard Institutional Mutual Fund $ 2,967,061 $ 2,967,061 Firefighters' Pension Vanguard Index Trust Mutual Fund $ 978,791 Firefighters' Pension Fidelity Dividend Growth Mutual Fund 1,526,865 Firefighters' Pension Vanguard Total Stock Mutual Fund 1,055,490 $ 3,561,146 C. Annual Pension Costs Employer contributions have been determined as follows: Illinois Municipal Police Firefighters' Retirement Pension Pension Actuarial Valuation Date December 31, January 1,2001 January 1,2001 1998 Actuarial Cost Method Entry-age Entry-age Entry-age Normal Normal Normal Asset Valuation Method 5 Year Market Market Smoothed Market Amortization Method Level Level Level Percentage of Percentage of Percentage of Payroll Payroll Payroll Amortization Period 34 Years, 34 Years, 34 Years, Closed Closed Closed - 36 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs (Continued) Illinois Municipal Police Firefighters' .. Retirement Pension Pension 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 Employer annual pension costs (APC), actual contributions and the net pension obligation (NPO) (asset) are as follows. The NPO (asset) is the cumulative difference between the APC and the contributions actually made. Illinois Calendar Municipal Fiscal Police Firefighters' Year Retirement Year Pension Pension Annual Pension Cost 1998 $ 313,899 1999 $ 69,674 $ 71,334 (APC) 1999 349,773 2000 218,523 299,044 -� 2000 343,528 2001 271,765 357,168 Actual Contribution 1998 $ 313,899 1999 $ 69,674 $ 71,334 1999 349,773 2000 218,523 299,044 2000 343,528 2001 271,765 357,168 Percentage of APC 1998 100.00% 1999 100.00% 100.00% Contributed 1999 100.00 2000 100.00 100.00 2000 100.00 2001 100.00 100.00 NPO(Asset) 1998 $ - 1999 $ - $ - 1999 - 2000 - - 2000 - 2001 - - - 37 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 14. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs (Continued) The net pension obligation(asset) has been calculated as follows: Police Firefighters' Pension Pension Annual required contributions $ 271,765 $ 357,168 Interest on net pension obligation - - Adjustment to annual required contribution - - Annual pension cost 271,765 357,168 Contributions made 271,765 357,168 Increase (decrease) in net pension obligation(asset) - - Net pension obligation(asset)beginning of year - - NET PENSION OBLIGATION(ASSET) END OF YEAR $ - $ - - 38 - i L.. REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2001 (4) Unfunded (Overfunded) UAAL (2) Actuarial (OAAL) _ Actuarial Accrued As a Actuarial (1) Accrued (3) Liability Percentage Valuation Actuarial Liability Funded (UAAL) (5) of Covered Date Value of (AAL) Ratio (OAAL) Covered Payroll December 31, Assets Entry Age Normal (1)/(2) (2) - (1) Payroll (4)/(5) 1995 $ 4,315,490 $ 4,524,132 95.39% $ 208,642 $ 3,104,866 6.72% 1996 4,938,422 4,984,852 99.07% 46,430 3,207,244 1.45% 1997 5,941,801 6,161,874 96.43% 220,073 3,578,453 6.15% 1998 7,108,829 6,882,205 103.29% (226,624) 3,777,360 (6.00°/x) 1999 8,117,918 7,701,764 105.40% (416,154) 4,129,559 (10.08%) 2000 9,739,416 8,934,915 109.00% (804,501) 4,636,007 (17.35%) (See independent auditor's report.) - 39 - VILLAGE OF OAK BROOK,ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND _ December 31, 2001 (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) 1997 $ 17,240,465 $ 15,849,416 108.78% $(1,391,049) $ 1,822,595 (76.32%) 1998 18,904,148 17,216,822 109.80% (1,687,326) 2,172,052 (77.68%) 1999 19,542,081 18,564,949 105.26% (977,132) 2,172,484 (44.98%) 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% Information is presented for as many years as is available until six years of information is presented in accordance with GASB Statement No. 27. i to i (See independent auditor's report.) -40- VILLAGE OF OAK BROOK,ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS'PENSION FUND w December 31,2001 (4) UAAL (2) Unfunded (OAAL) Actuarial (Overfunded) As a Actuarial (1) Accrued (3) AAL Percentage Valuation Actuarial Liability Funded (URAL) (5) of Covered Date Value of (AAL) Ratio (ORAL) Covered Payroll December 31, Assets -Entry Age (1)/(2) (2) -(1) Payroll (4)/(5) 1997 $ 16,159,276 $ 15,009,251 107.66% $ . (1,150,025) $ 1,424,744 (80.72%) 1998 17,364,674 15,659,293 110.89% (1,705,381) 1,530,499 (111.43%) 1999 18,203,403 18,051,091 100.84% (152,312) 1,788,993 (8.51%) 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% Information is presented for as many years as is available until six years of information is presented in accordance with GASB Statement No. 27. T (See independent auditor's report.) -41 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2001 Annual Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 1995 $ 268,571 $ 268,571 100.00% 1996 571,563 571,563 100.00% 1997 309,871 309,871 100.00% 1998 313,899 313,899 100.00% 1999 349,773 349,773 100.00% 2000 343,528 343,528 100.00% r. (See independent auditor's report.) - 42 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND December 31, 2001 ... Annual Fiscal Pension Year Employer Cost Percentage December 31, Contributions (APC) Contributed 1997 $ 224,376 $ 224,376 100.00% 1998 192,824 192,824 100.00% .� 1999 69,674 69,674 100.00% 2000 218,523 218,523 100.00% 2001 271,765 271,765 100.00% Information is presented for as many years as is available until six years of information is presented in accordance with GASB Statement No. 27. .r. (See independent auditor's report.) - 43 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS' PENSION FUND December 31, 2001 Annual Fiscal Pension Year Employer Cost Percentage December 31, Contributions (APC) Contributed 1997 $ 178,586 $ 178,586 100.00% 1998 165,029 165,029 100.00% 1999 71,334 71,334 100.00% V 2000 299,044 299,044 100.00% 2001 357,168 357,168 100.00% y Information is presented for as many years as is available until six years of information is presented in accordance with GASB Statement No. 27. (See independent auditor's report.) �- - 44 - l.. GOVERNMENTAL FUND TYPES GENERAL FUND General Fund - to account for resources traditionally associated with governments which are not `" required to be accounted for in another fund. i VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2001 Variance Favorable _ Budget Actual (Unfavorable) REVENUES Intergovernmental $ 13,903,240 $ 10,328,662 $ (3,574,578) Utility taxes 1,750,000 2,174,184 424,184 Licenses and permits 502,525 324,131 (178,394) Charges for services 378,700 374,409 (4,291) Fines and penalties 227,300 300,311 73,011 Investment income 900,000 952,571 52,571 Donations - 400,000 400,000 Miscellaneous 145,565 97,185 (48,380) Total revenues 17,807,330 14,951,453 (2,855,877) EXPENDITURES Current General government 12,930,680 11,569,493 1,361,187 _ Public safety 9,390,425 8,935,397 455,028 Public works 1,947,825 1,558,922 388,903 Culture and recreation 1,072,965 875,508 197,457 Total expenditures 25,341,895 22,939,320 2,402,575 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (7,534,565) (7,987,867) (453,302) OTHER FINANCING SOURCES(USES) Operating transfers in 2,294,215 781,395 (1,512,820) Operating transfers(out) (190,965) (190,965) - Installment contract proceeds 4,000,000 3,968,310 (31,690) Proceeds from sale of fixed assets 370,000 398,937 28,937 Total other financing sources(uses) 6,473,250 4,957,677 (1,515,573) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (1,061,315) (3,030,190) $ (1,968,875) FUND BALANCE,JANUARY 1 20,372,085 Prior period adjustment (58,753) FUND BALANCE,JANUARY 1,RESTATED 20,313,332 FUND BALANCE,DECEMBER 31 $ 17,283,142 (See independent auditor's report.) .� -45 - VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2001 Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental Municipal sales tax $ 11,388,800 $ 9,307,134 $ (2,081,666) Illinois state income tax 724,940 664,298 (60,642) Corporate personal property replacement taxes 224,500 203,810 (20,690) York Township road and bridge tax 65,000 59,957 (5,043) Grants 1,500,000 93,463 (1,406,537) Total intergovernmental 13,903,240 10,328,662 (3,574,578) Utility taxes 1,750,000 2,174,184 424,184 Licenses and permits 502,525 324,131 (178,394) Charges for services 378,700 374,409 (4,291) Fines and penalties 227,300 300,311 73,011 Investment income 900,000 952,571 52,571 Donations - 400,000 400,000 Miscellaneous Franchise/infrastructure maintenance fees 96,100 24,701 (71,399) Other 49,465 72,484 23,019 Total miscellaneous 145,565 97,185 (48,380) TOTAL REVENUES $ 17,807,330 $ 14,951,453 $ (2,855,877) (See independent auditor's report.) '_ -46 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT _ Legislative and general management Board of trustees Personnel $ 75,935 $ 75,931 $ 4 Materials and supplies 1,000 746 254 - Operation and contractual 89,085 57,479 31,606 Total board of trustees 166,020 134,156 31,864 .r Village clerk Personnel 138,560 116,540 22,020 Materials and supplies 2,115 2,112 3 Operation and contractual 24,025 21,832 2,193 Total Village clerk 164,700 140,484 24,216 Legal Personnel 122,810 122,806 4 Materials and supplies 4,720 4,718 2 Operation and contractual 38,640 33,213 5,427 Total legal 166,170 160,737 5,433 General management Personnel 306,050 306,046 4 Materials and supplies 1,905 1,189 716 Operation and contractual 2,175 1,383 792 Total general management 310,130 308,618 1,512 Human resources ... Personnel 80,770 80,767 3 Materials and supplies 4,050 1,530 2,520 Operation and contractual 41,855 38,848 3,007 Total human resources 126,675 121,145 5,530 Risk management Personnel 47,070 46,097 973 Operation and contractual 489,395 489,392 3 Total risk management 536,465 535,489 976 (This schedule is continued on the following pages.) -47- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND -' For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) Emergency management Personnel $ 17,890 $ 3,756 $ 14,134 Materials and supplies 7,200 421 6,779 -- Operation and contractual 8,600 1,055 7,545 Total emergency management 33,690 5,232 28,458 General services Personnel 51,445 49,837 1,608 Materials and supplies 59,695 56,431 3,264 Operation and contractual 180,905 180,898 7 Capital 51,435 - 51,435 Total general services 343,480 287,166 56,314 Purchasing Personnel 99,855 88,540 11,315 Materials and supplies 1,400 1,504 (104) Operation and contractual 10,615 10,614 1 Total purchasing 111,870 100,658 11,212 Information systems - Personnel 293,320 288,608 4,712 Materials and supplies 17,440 11,230 6,210 Operation and contractual 120,400 95,827 24,573 Capital 628,175 262,174 366,001 Total information systems 1,059,335 657,839 401,496 Village communications center Personnel 586,710 586,706 4 Materials and supplies 8,060 8,060 - "" Operation and contractual 11,250 11,247 3 Capital 27,245 27,244 1 Total Village communications center 633,265 633,257 8 (This schedule is continued on the following pages.) -48- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) Community events Operation and contractual $ 128,390 $ 128,386 $ 4 Total community events 128,390 128,386 4 Total legislative and general management 3,780,190 3,213,167 567,023 Financial services Financial services management Personnel 117,185 116,903 282 -- Materials and supplies 3,155 1,827 1,328 Operation and contractual 29,120 26,598 2,522 Total financial services management 149,460 145,328 4,132 Accounting and reporting Personnel 300,130 253,562 46,568 Materials and supplies 10,345 5,784 4,561 Operation and contractual 51,360 34,926 16,434 Total accounting and reporting 361,835 294,272 67,563 Debt service _ Operation and contractual 360,160 360,158 2 Total debt service 360,160 360,158 2 Total financial services 871,455 799,758 71,697 Engineering and capital projects Engineering Personnel 404,945 312,612 92,333 Materials and supplies 2,165 2,040 125 Operation and contractual 50,085 23,577 26,508 Total engineering 457,195 338,229 118,966 Municipal building improvements Operation and contractual 15,000 11,606 3,394 Capital 244,000 51,733 192,267 m Total municipal building improvements 259,000 63,339 195,661 (This schedule is continued on the following pages.) -49- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31, 2001 s.. Variance Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT(Continued) Engineering and capital projects(Continued) Traffic and lighting improvements Capital $ 3,000 $ $ 3,000 Total traffic and lighting improvements 3,000 - 3,000 Library building project Operation and contractual 110,000 106,952 3,048 Capital 3,805,490 3,805,490 - Total library building project 3,915,490 3,912,442 3,048 Municipal complex project Operation and contractual 161,555 161,552 3 -- Capital 3,482,795 3,081,006 401,789 Total municipal complex project 3,644,350 3,242,558 401,792 ^ Total engineering and capital projects 8,279,035 7,556,568 722,467 Total general government 12,930,680 11,569,493 1,361,187 PUBLIC SAFETY Police Department Police services management Personnel 403,245 403,242 3 Materials and supplies 6,050 5,158 892 .- Operation and contractual 41,150 39,415 1,735 Total police services management 450,445 447,815 2,630 Police field services Personnel 2,577,265 2,501,236 76,029 Materials and supplies 56,175 56,173 2 Operation and contractual 274,125 274,125 - Capital 100,635 59,925 40,710 Total police field services 3,008,200 2,891,459 116,741 Police general support Personnel 256,260 256,257 3 Materials and supplies 19,280 16,386 2,894 (This schedule is continued on the following pages.) -50- VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND _ For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) PUBLIC SAFETY(Continued) Police Department(Continued) Police general support(Continued) Operation and contractual $ 2,285 $ 1,425 $ 860 Capital 1,590 1,589 1 Total police general support 279,415 275,657 3,758 Police investigations Personnel 581,815 408,935 172,880 Materials and supplies 10,405 10,402 3 Operation and contractual 25,855 24,454 1,401 Capital 2,000 1,101 899 Total police investigations 620,075 444,892 175,183 Police records Personnel 119,345 119,332 13 Materials and supplies 6,980 6,974 6 Operation and contractual 3,600 3,382 218 Total police records 129,925 129,688 237 Public relations/crime prevention Personnel 140,975 143,540 (2,565) Materials and supplies 5,400 4,087 1,313 Operation and contractual 6,370 6,733 (363) Capital 6,000 4,683 1,317 Total public relations/crime prevention 158,745 159,043 (298) Total police department 4,646,805 4,348,554 298,251 Fire and community development Fire and EMS general salaries Personnel 2,736,995 2,730,153 6,842 Total fire and EMS general salaries 2,736,995 2,730,153 6,842 Fire service management Personnel 298,630 298,626 4 Materials and supplies 4,370 4,365 5 Operation and contractual 12,370 12,365 5 Total fire service management 315,370 315,356 14 (This schedule is continued on the following pages.) -51 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES - .� BUDGET AND ACTUAL(Continued) GENERALFUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) PUBLIC SAFETY(Continued) Fire and community development(Continued) Rescue and fire operation Personnel $ 2,040 $ 2,037 $ 3 Materials and supplies 32,150 29,647 2,503 Operation and contractual 225,710 229,243 (3,533) Capital 142,850 90,450 52,400 Total rescue and fire operation 402,750 351,377 51,373 Special teams operations Personnel 205 29 176 Materials and supplies 3,530 3,220 310 Operation and contractual 25,375 25,372 3 Capital 7,000 5,288 1,712 Total special teams operations 36,110 33,909 2,201 Rescue and fire training Personnel 45,710 32,098 13,612 Materials and supplies 5,300 2,518 2,782 Operation and contractual 150 - 150 Total rescue and fire training 51,160 34,616 16,544 Emergency medical services Personnel 53,915 53,914 1 Materials and supplies 13,365 9,513 3,852 .._ Operation and contractual 412,815 400,841 11,974 Capital 42,700 28,397 14,303 Total emergency medical services 522,795 492,665 30,130 Prevention and public education Personnel 191,025 150,309 40,716 ' Materials and supplies 3,930 3,925 5 Operation and contractual 13,290 12,813 477 Capital 6,000 4,874 1,126 Total prevention and public education 214,245 171,921 42,324 (This schedule is continued on the following pages.) '_ -52- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERALFUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) PUBLIC SAFETY(Continued) Fire and community development(Continued) Community development management Personnel $ 174,270 $ 168,230 $ 6,040 Materials and supplies 1,450 658 792 Operation and contractual 3,100 2,591 509 Total community development management 178,820 171,479 7,341 _ Code enforcement Personnel 234,785 234,783 2 Materials and supplies 2,515 2,514 1 Operation and contractual 48,075 48,070 5 Total code enforcement 285,375 285,367 8 Total fire and community development 4,743,620 4,586,843 156,777 Total public safety 9,390,425 8,935,397 455,028 PUBLIC WORKS _ Public works management Personnel 263,390 263,386 4 Materials and supplies 1,875 1,875 - Operation and contractual 12,085 12,083 2 Capital 5,300 5,299 1 Total public works management 282,650 282,643 7 �. Mosquito control Operation and contractual 56,995 50,907 6,088 Total mosquito control 56,995 50,907 6,088 Buildings and grounds Personnel 96,980 62,835 34,145 Materials and supplies 25,965 22,280 3,685 Operation and contractual 139,290 118,865 20,425 Capital 3,000 1,490 1,510 Total buildings and grounds 265,235 205,470 59,765 (This schedule is continued on the following pages.) -53 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2001 Variance Favorable _ Budget Actual (Unfavorable) PUBLIC WORKS(Continued) Streets-general salaries Personnel $ 523,810 $ 495,997 $ 27,813 Materials and supplies 3,990 1,996 1,994 Operation and contractual 2,980 2,150 830 Total streets-general salaries 530,780 500,143 30,637 Street maintenance Materials and supplies 14,420 12,208 2,212 Operation and contractual 104,920 90,566 14,354 Total street maintenance 119,340 102,774 16,566 Traffic and lighting maintenance Materials and supplies 13,925 11,790 2,135 Operation and contractual 114,150 114,148 2 Capital 136,000 2,892 133,108 Total traffic and lighting maintenance 264,075 128,830 135,245 Snow removal Personnel 48,330 13,750 34,580 Materials and supplies 48,145 41,568 6,577 Operation and contractual 61,475 56,008 5,467 Total snow removal 157,950 111,326 46,624 �. Drainage management Materials and supplies 5,100 3,007 2,093 Operation and contractual 50,280 44,191 6,089 Total drainage management 55,380 47,198 8,182 Forestry ' Personnel 17,405 2,900 14,505 Materials and supplies 1,440 886 554 Operation and contractual 165,175 94,447 70,728 Total forestry 184,020 98,233 85,787 (This schedule is continued on the following page.) -54- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2001 i Variance Favorable Budget Actual (Unfavorable) PUBLIC WORKS (Continued) 0 Safety pathway maintenance Materials and supplies $ 12,090 $ 12,088 $ 2 Operation and contractual 19,310 19,310 - Total safety pathway maintenance 31,400 31,398 2 Total public works 1,947,825 1,558,922 388,903 _ CULTURE AND RECREATION Library general operations _ Personnel $ 310,160 $ 299,922 $ 10,238 Materials and supplies 38,525 11,691 26,834 Operation and contractual 112,330 57,506 54,824 Capital 97,500 23,576 73,924 Total library general operations 558,515 392,695 165,820 i Library technical services Personnel 91,775 91,774 1 Materials and supplies 11,590 2,425 9,165 Operation and contractual 7,830 4,718 3,112 Total library technical services 111,195 98,917 12,278 r Library reference and adult services Personnel 129,190 117,177 12,013 Materials and supplies 118,080 117,878 202 -- Operation and contractual 6,500 6,346 154 Total library reference and adult services 253,770 241,401 12,369 i Library youth services Personnel 100,785 94,056 6,729 _ Materials and supplies 44,100 43,854 246 Operation and contractual 4,600 4,585 15 Total library youth services 149,485 142,495 6,990 Total culture and recreation 1,072,965 875,508 197,457 TOTAL EXPENDITURES $ 25,341,895 $ 22,939,320 $ 2,402,575 (See independent auditor's report.) -55 - SPECIAL REVENUE 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 COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS December 31, 2001 Foreign Fire Hotel/Motel Motor Insurance _ Tax Fuel Tax Tax Total ASSETS Cash and investments $ 558,496 $ 612,324 $ 92,926 $ 1,263,746 Receivables Allotments - 20,314 - 20,314 Accrued interest 1,329 1,383 196 2,908 Other,hotel/motel tax 25,397 - - 25,397 TOTAL ASSETS $ 585,222 $ 634,021 $ 93,122 $ 1,312,365 LIABILITIES AND FUND BALANCES _ LIABILITIES Accounts payable $ 173,043 $ - $ 1,110 $ 174,153 Total liabilities 173,043 - 1,110 174,153 FUND BALANCES Unreserved 412,179 634,021 92,012 1,138,212 Total fund balances 412,179 634,021 92,012 1,138,212 TOTAL LIABILITIES AND FUND BALANCES $ 585,222 $ 634,021 $ 93,122 $ 1,312,365 i (See independent auditor's report.) - 56 - (This page is intentionally left blank.) s s- a VILLAGE OF OAK BROOK,ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL- SPECIAL REVENUE FUNDS For the Year Ended December 31,2001 Hotel/Motel Tax Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental $ - $ - $ - Hotel/motel taxes 352,000 308,101 (43,899) Investment income 22,000 23,245 1,245 Total revenues 374,000 331,346 (42,654) EXPENDITURES _ Current Public safety - - - Culture and recreation 370,000 369,516 484 Total expenditures 370,000 369,516 484 EXCESS(DEFICIENCY)OF REVENUES ... OVER EXPENDITURES 4,000 (38,170) (42,170) OTHER FINANCING SOURCES(USES) Operating transfers(out) - - - Total other financing sources(uses) - - - EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 4,000 (38,170) $ (42,170) FUND BALANCES,JANUARY 1 450,349 FUND BALANCES,DECEMBER 31 $ 412,179 57- Motor Fuel Tax Foreign Fire Insurance Tax Total Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 272,700 $ 256,870 $ (15,830) $ 27,400 $ 39,172 $ 11,772 $ 300,100 $ 296,042 $ (4,058) - - - - - - 352,000 308,101 (43,899) 25,000 27,387 2,387 2,750 3,446 696 49,750 54,078 4,328 - 297,700 284,257 (13,443) 30,150 42,618 12,468 701,850 658,221 (43,629) - - - 41,150 40,896 254 41,150 40,896 254 - - - 370,000 369,516 484 - - - 41,150 40,896 254 411,150 410,412 738 297,700 284,257 (13,443) (11,000) 1,722 12,722 290,700 247,809 (42,891) (66,000) (62,025) 3,975 - - - (66,000) (62,025) 3,975 (66,000) (62,025) 3,975 - - - (66,000) (62,025) 3,975 $ 231,700 222,232 $ (9,468) $ (11,000) 1,722 $ 12,722 $ 224,700 185,784 $ (38,916) 411,789 90,290 952,428 $ 634,021 $ 92,012 $ 1,138,212 (See independent auditor's report.) "" -58- CAPITAL PROJECTS FUND Infrastructure Fund- to account for revenues and expenditures relative to the construction of paving, drainage and bike trail improvements. VILLAGE OF OAK BROOK, ILLINOIS BALANCE SHEET CAPITAL PROJECTS FUND - INFRASTRUCTURE FUND December 31, 2001 ASSETS Cash and investments $ 1,901,910 Receivables Utility taxes 83,806 Accrued interest 4,875 Other 53,096 TOTAL ASSETS $ 2,043,687 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 83,761 Deposits payable 23,364 _ Total liabilities 107,125 FUND BALANCE Unreserved 1,936,562 Total fund balance 1,936,562 TOTAL LIABILITIES AND FUND BALANCE $ 2,043,687 (See independent auditor's report.) - 59 - VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CAPITAL PROJECTS FUND- INFRASTRUCTURE FUND For the Year Ended December 31, 2001 Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental- grants $ 404,400 $ 40,338 $ (364,062) Utility taxes 1,006,000 1,177,590 171,590 Investment income 66,000 128,915 62,915 Total revenues 1,476,400 1,346,843 (129,557) EXPENDITURES Capital outlay 3,299,100 2,223,188 1,075,912 Total expenditures 3,299,100 2,223,188 1,075,912 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,822,700) (876,345) 946,355 OTHER FINANCING SOURCES (USES) Operating transfers in 66,000 62,025 (3,975) _ Total other financing sources (uses) 66,000 62,025 (3,975) EXCESS (DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (1,756,700) (814,320) $ 942,380 FUND BALANCE, JANUARY 1 2,725,747 Prior period adjustment 25,135 FUND BALANCE,JANUARY 1,RESTATED 2,750,882 FUND BALANCE, DECEMBER 31 $ 1,936,562 (See independent auditor's report.) - 60- PROPRIETARY FUND TYPES 3 6w. ' { ENTERPRISE FUNDS Waterworks System Fund - to account for revenues and expenses relative to the operation of the water utility. Sports Core Fund - to account for revenues and expenses relative to the operation of the Sports Core. VILLAGE OF OAK BROOK, ILLINOIS COMBINING BALANCE SHEET- ENTERPRISE FUNDS December 31, 2001 Waterworks Sports System Core Total ASSETS — CURRENT ASSETS Cash and investments $ 4,670,056 $ 164,404 $ 4,834,460 _ Receivables Billed water sales 55,595 - 55,595 Unbilled water sales 265,506 - 265,506 Accrued interest 11,808 1,632 13,440 Other 2,213 34,464 36,677 Inventories - 185,537 185,537 — Total current assets 5,005,178 386,037 5,391,215 RESTRICTED ASSETS Cash and investments - 188,045 188,045 FIXED ASSETS Property,plant and equipment 17,647,761 18,207,960 35,855,721 Accumulated depreciation (7,830,679) (3,691,997) (11,522,676) Total fixed assets 9,817,082 14,515,963 24,333,045 OTHER ASSETS Water purchase rights 1,537,873 - 1,537,873 TOTAL ASSETS $ 16,360,133 $ 15,090,045 $ 31,450,178 - 61 - Waterworks Sports System Core Total LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable $ 280,185 $ 188,008 $ 468,193 Accrued payroll 16,989 34,372 51,361 Accrued interest payable - 14,218 14,218 Compensated absences payable 18,765 35,555 54,320 Deposits payable - 45,500 45,500 Deferred revenue - 25,384 25,384 Due to other funds - 1,558,375 1,558,375 Installment contracts payable - 225,000 225,000 Capital lease payable - 35,743 35,743 -- Total current liabilities 315,939 2,162,155 2,478,094 LONG-TERM LIABILITIES Advances from other funds - 1,015,000 1,015,000 Installment contract payable - 1,485,000 1,485,000 Capital lease payable - 38,137 38,137 Total long-term liabilities - 2,538,137 2,538,137 Total liabilities 315,939 4,700,292 5,016,231 FUND EQUITY Contributed capital - 11,025,590 11,025,590 Retained earnings Reserved- golf surcharge - 188,045 188,045 Unreserved(deficit) 16,044,194 (823,882) 15,220,312 Total fund equity 16,044,194 10,389,753 26,433,947 TOTAL LIABILITIES AND -- FUND EQUITY $ 16,360,133 $ 15,090,045 $ 31,450,178 (See independent auditor's report.) - 62 - VILLAGE OF OAK BROOK,ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS For the Year Ended December 31, 2001 Waterworks Sports System Core Total OPERATING REVENUES Charges for services $ 3,361,238 $ 3,339,477 $ 6,700,715 Miscellaneous 60,148 - 60,148 Total operating revenues 3,421,386 3,339,477 6,760,863 OPERATING EXPENSES Operation of facilities 3,414,769 3,519,931 6,934,700 Depreciation and amortization 516,158 382,498 898,656 r Total operating expenses 3,930,927 3,902,429 7,833,356 OPERATING INCOME(LOSS) (509,541) (562,952) (1,072,493) NONOPERATING REVENUES (EXPENSES) Investment income 235,430 60,658 296,088 , Interest expense - (117,079) (117,079) Gain(loss) on sale of fixed assets - 752,309 752,309 Total nonoperating revenues (expenses) 235,430 695,888 931,318 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (274,111) 132,936 (141,175) OPERATING TRANSFERS Operating transfers in - 190,965 190,965 Operating transfers (out) (761,000) - (761,000) Total operating transfers (761,000) 190,965 (570,035) NET INCOME(LOSS) (1,035,111) 323,901 (711,210) �. RETAINED EARNINGS (DEFICIT),JANUARY 1 17,079,305 (959,738) 16,119,567 RETAINED EARNINGS (DEFICIT),DECEMBER 31 $ 16,044,194 $ (635,837) $ 15,408,357 i (See independent auditor's report.) - - 63 - (This page is intentionally left blank.) T �r VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS For the Year Ended December 31,2001 Waterworks Sports System Core Total CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (509,541) $ (562,952) $ (1,072,493) .. Depreciation and amortization 516,158 382,498 898,656 Adjustments to reconcile operating income _ (loss) to net cash from operating activities Changes in assets and liabilities Accounts receivable 12,839 - 12,839 IRMA surplus credit 51,348 75,083 126,431 Other receivable 11,852 (6,072) 5,780 Inventories - (19,102) (19,102) _ Accounts payable 26,990 128,600 155,590 Accrued payroll and compensated absences 2,504 22,007 24,511 Deposits payable - (2,455) (2,455) r Deferred revenue - 25,384 25,384 Net cash from operating activities 112,150 42,991 155,141 r., CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Borrowings from other funds - 252,650 252,650 Operating transfers in - 190,965 190,965 Operating transfers (out) (761,000) - (761,000) _ Net cash from non-capital financing activities (761,000) 443,615 (317,385) , CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets (140,261) (2,002,448) (2,142,709) Proceeds from sale of fixed assets - 954,868 954,868 Principal paid on note payable - (59,011) (59,011) —. Principal paid on installment contract payable - (845,000) (845,000) Principal paid on capital lease payable - (33,501) (33,501) Interest paid - (121,457) (121,457) Net cash from capital and related financing activities (140,261) (2,106,549) (2,246,810) (This statement is continued on the following page.) —` - 64 - VILLAGE OF OAK BROOK, ILLINOIS -- COMBINING STATEMENT OF CASH FLOWS (Continued) ENTERPRISE FUNDS For the Year Ended December 31, 2001 Waterworks Sports System Core Total A CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments $ - $ (2,417) $ (2,417) Sale of investments 1,043,441 - 1,043,441 Interest received 257,146 59,026 316,172 Net cash from investing activities 1,300,587 56,609 1,357,196 NET INCREASE (DECREASE)IN CASH AND CASH EQUIVALENTS 511,476 (1,563,334) (1,051,858) CASH AND CASH EQUIVALENTS, !' JANUARY 1 2,797,868 1,727,738 4,525,606 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 3,309,344 $ 164,404 $ 3,473,748 CASH AND INVESTMENTS Cash and cash equivalents $ 3,309,344 $ 164,404 $ 3,473,748 Investments(including$188,045 of restricted assets) 1,360,712 188,045 1,548,757 TOTAL CASH AND INVESTMENTS $ 4,670,056 $ 352,449 $ 5,022,505 — (See independent auditor's report.) - 65 - VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -BUDGET AND ACTUAL WATERWORKS SYSTEM FUND For the Year Ended December 31, 2001 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services Water sales $ 3,362,300 $ 3,219,862 $ (142,438) Unmetered sales 9,000 11,975 2,975 Water tap on charges 40,000 88,477 48,477 Fire service charges - 14,229 14,229 .r Meter fees and special services 25,000 26,695 1,695 Miscellaneous 45,000 60,148 15,148 Total operating revenues 3,481,300 3,421,386 (59,914) OPERATING EXPENSES Operation of facilities 4,142,930 3,414,769 728,161 Depreciation and amortization - 516,158 (516,158) Total operating expenses 4,142,930 3,930,927 212,003 OPERATING INCOME (LOSS) (661,630) (509,541) 152,089 NONOPERATING REVENUES (EXPENSES) Investment income 220,000 235,430 15,430 -- Total nonoperating revenues (expenses) 220,000 235,430 15,430 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (441,630) (274,111) 167,519 OPERATING TRANSFERS (OUT) (761,000) (761,000) - NET INCOME (LOSS) $ (1,202,630) (1,035,111) $ 167,519 RETAINED EARNINGS,JANUARY 1 17,079,305 RETAINED EARNINGS,DECEMBER 31 $ 16,044,194 (See independent auditor's report.) ' - 66 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF OPERATING EXPENSES -BUDGET AND ACTUAL WATERWORKS SYSTEM FUND �- For the Year Ended December 31, 2001 Variance Favorable Budget Actual (Unfavorable) OPERATING EXPENSES EXCLUDING DEPRECIATION Operation of facilities Public works -water operations Personnel $ 433,210 $ 412,082 $ 21,128 Materials and supplies 89,210 89,205 5 Operation and contractual 2,972,160 2,856,878 115,282 Total public works -water operations 3,494,580 3,358,165 136,415 Capital improvements Capital outlay 648,350 196,864 451,486 Total capital improvements 648,350 196,864 451,486 -- TOTAL OPERATING EXPENSES EXCLUDING DEPRECIATION-BUDGETARY BASIS $ 4,142,930 3,555,029 $ 587,901 ADJUSTMENTS TO GAAP BASIS Capital expenditures (140,260) Depreciation expense 447,298 ' Amortization expense 68,860 Total adjustments to GAAP basis 375,898 TOTAL OPERATING EXPENSES $ 3,930,927 (See independent auditor's report.) - 67 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FIXED ASSETS AND DEPRECIATION WATERWORKS SYSTEM FUND For the Year Ended December 31,2001 Fixed Assets r Balances Additions Balances January 1 and Transfers Retirements December 31 Land and land rights $ 215,800 $ - $ - $ 215,800 Service of supply plant-wells and springs 314,753 - - 314,753 Structure and improvements 737,501 - - 737,501 Electrical pumping equipment 593,137 9,461 - 602,598 Water treatment equipment 8,149 - - 8,149 Distributions,reservoirs,mains and standpipes 14,122,874 79,339 - 14,202,213 Meters and meter installation 1,162,946 - - 1,162,946 Hydrants 181,472 - - 181,472 Office furniture and equipment 20,763 - - 20,763 Tools,shop and garage equipment 20,189 - - 20,189 Laboratory equipment 1,070 - - 1,070 r Miscellaneous equipment 117,443 51,461 - 168,904 Intangible plant-organization 11,403 - - 11,403 TOTALS $ 17,507,500 $ 140,261 $ - $ 17,647,761 r -68 - Accumulated Depreciation Net Fixed Balances Additions Balances Asset January 1 and Transfers Retirements December 31 Value $ - $ - $ - $ - $ 215,800 212,368 7,869 - 220,237 94,516 182,421 18,437 - 200,858 536,643 189,932 14,946 - 204,878 397,720 8,149 - - 8,149 - 5,863,099 354,065 - 6,217,164 7,985,049 649,881 41,316 - 691,197 471,749 _ 110,097 4,537 - 114,634 66,838 20,763 - - 20,763 - .� 20,189 - - 20,189 - 1,070 - - 1,070 - 114,009 6,128 - 120,137 48,767 11,403 - - 11,403 - $ 7,383,381 $ 447,298 $ - $ 7,830,679 $ 9,817,082 (See independent auditor's report.) -69- VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -BUDGET AND ACTUAL SPORTS CORE FUND For the Year Ended December 31, 2001 Variance _ Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services Golf $ 2,030,960 $ 1,986,828 $ (44,132) Bath and tennis 367,855 284,295 (83,560) Food and beverage 1,178,950 1,068,354 (110,596) Total operating revenues 3,577,765 3,339,477 (238,288) OPERATING EXPENSES Golf club 1,405,450 1,366,873 38,577 Bath and tennis 841,777 818,077 23,700 Food and beverage 1,334,985 1,334,981 4 Depreciation - 382,498 (382,498) Total operating expenses 3,582,212 3,902,429 (320,217) OPERATING INCOME (LOSS) (4,447 562,952 ( ) (558,505) NONOPERATING REVENUES (EXPENSES) —. Investment income 32,000 60,658 28,658 Interest expense (1,034,870) (117,079) 917,791 Gain(loss)on sale of fixed assets 2,362,600 752,309 (1,610,291) ._ Total nonoperating revenues(expenses) 1,359,730 695,888 (663,842) NET INCOME(LOSS)BEFORE OPERATING TRANSFERS 1,355,283 132,936 (1,222,347) OPERATING TRANSFERS IN 163,800 190,965 27,165 NET INCOME(LOSS) $ 1,519,083 323,901 $ (1,195,182) RETAINED EARNINGS (DEFICIT),JANUARY 1 (959,738) RETAINED EARNINGS (DEFICIT),DECEMBER 31 $ (635,837) (See independent auditor's report.) - 70- VILLAGE OF OAK BROOK, ILLINOIS ^- SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL SPORTS CORE FUND For the Year Ended December 31, 2001 Variance Favorable Budget Actual (Unfavorable) CHARGES FOR SERVICES Golf Fees $ 1,415,550 $ 1,390,805 $ (24,745) Golf surcharge 70,500 72,344 1,844 Memberships 330,525 313,734 (16,791) Merchandise sales 214,385 208,765 (5,620) Miscellaneous - 1,180 1,180 Total golf 2,030,960 1,986,828 (44,132) Bath and tennis _ Fees 115,650 92,236 (23,414) Memberships 243,305 181,215 (62,090) Merchandise sales 1,400 2,836 1,436 Miscellaneous 7,500 8,008 508 Total bath and tennis 367,855 284,295 (83,560) Food and beverage Food sales 735;200 703,405 (31,795) Beverage sales 358,350 285,543 (72,807) Miscellaneous 85,400 79,406 (5,994) Total food and beverage 1,178,950 1,068,354 (110,596) TOTAL OPERATING REVENUES $ 3,577,765 $ 3,339,477 $ (238,288) (See independent auditor's report.) "' - 71 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL SPORTS CORE FUND For the Year Ended December 31,2001 = Variance Favorable Budget Actual (Unfavorable) OPERATING EXPENSES EXCLUDING DEPRECIATION Operations -golf club Golf club general operations Personnel $ 360,605 $ 359,885 $ 720 Materials and supplies 213,090 213,089 1 Operation and contractual 153,165 153,160 5 Total golf club general operations 726,860 726,134 726 Golf club range operations Personnel 51,010 51,006 4 Materials and supplies 11,460 11,458 2 Operation and contractual 2,540 1,519 1,021 Total golf club range operations 65,010 63,983 1,027 Golf cart operations ... Personnel 23,685 23,074 611 Materials and supplies 2,325 396 1,929 Operation and contractual 42,220 7,943 34,277 Total golf cart operations 68,230 31,413 36,817 Golf course maintenance Personnel 386,910 386,908 2 Materials and supplies 128,135 128,131 4 Operation and contractual 30,305 30,304 1 Total golf course maintenance 545,350 545,343 7 Total operations-golf club 1,405,450 1,366,873 38,577 Operations-bath and tennis Sports Core general operations Personnel 368,510 368,507 3 Materials and supplies 32,785 32,781 4 _ Operation and contractual 136,910 136,905 5 Total Sports Core general operations 538,205 538,193 12 (This schedule is continued on the following page.) -72- - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF OPERATING EXPENSES -BUDGET AND ACTUAL(Continued) SPORTS CORE FUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) OPERATING EXPENSES EXCLUDING DEPRECIATION(Continued) Operations-bath and tennis(Continued) Swimming operations Personnel $ 99,830 $ 95,282 $ 4,548 Materials and supplies 20,830 20,830 - Operation and contractual 31,430 31,425 5 A Total swimming operations 152,090 147,537 4,553 Tennis operations-outdoor Personnel 69,975 69,185 790 Materials and supplies 10,200 9,504 696 Operation and contractual 20,700 20,695 5 Total tennis operations-outdoor 100,875 99,384 1,491 Tennis operations-indoor Operation and contractual 8,955 8,953 2 Total tennis operations-indoor 8,955 8,953 2 Total operations-bath and tennis 800,125 794,067 6,058 Food and beverage Personnel 644,165 644,164 1 Materials and supplies 482,305 482,302 3 Operation and contractual 208,515 208,515 - Total food and beverage 1,334,985 1,334,981 4 Capital outlay 2,044,100 2,026,458 17,642 TOTAL OPERATING EXPENSES -BUDGETARY BASIS $ 5,584,660 $ 5,522,379 $ 62,281 ADJUSTMENTS TO GAAP BASIS Capital expenditures (2,002,448) Depreciation expense 382,498 Total adjustments to GAAP basis (1,619,950) TOTAL OPERATING EXPENSES $ 3,902,429 (See independent auditor's report.) -73 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FIXED ASSETS AND DEPRECIATION SPORTS CORE FUND For the Year Ended December 31,2001 Fixed Assets Balances Additions Balances January 1 and Transfers Retirements December 31 Land $ 8,292,249 $ - $ 123,305 $ 8,168,944 Land improvements-golf 2,636,816 21,511 - 2,658,327 Land improvements-bath and tennis 151,611 - - 151,611 Buildings-golf 1,991,117 7,000 - 1,998,117 -- Buildings-bath and tennis 2,272,970 1,820,788 330,000 3,763,758 Machinery and equipment-golf 974,053 65,007 40,470 998,590 Machinery and equipment-bath and tennis 153,865 182,404 16,384 319,885 Computer equipment 21,367 - - 21,367 Construction in progress-golf - - - �. Construction in progress-bath and tennis 204,562 20,540 114,803 110,299 Vehicles 26,947 - 9,885 17,062 TOTALS $ 16,725,557 $ 2,117,250 $ 634,847 $ 18,207,960 s -74- Accumulated Depreciation Net Fixed Balances Additions Balances Asset January 1 and Transfers Retirements December 31 Value $ - $ - $ - $ - $ 8,168,944 1,164,367 106,685 - 1,271,052 1,387,275 151,611 - - 151,611 - 347,108 49,362 - 396,470 1,601,647 1,368,920 98,225 264,000 1,203,145 2,560,613 445,150 104,548 36,692 513,006 485,584 113,701 22,244 6,909 129,036 190,849 21,367 - - 21,367 - - - - - 110,299 14,761 1,434 9,885 6,310 10,752 $ 3,626,985 $ 382,498 $ 317,486 $ 3,691,997 $ 14,515,963 (See independent auditor's report.) '" -75 - 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. VILLAGE OF OAK BROOK, ILLINOIS COMBINING BALANCE SHEET — INTERNAL SERVICE FUNDS December 31, 2001 Self Capital Insurance Garage Replacement Total ASSETS CURRENT ASSETS Cash and investments $ 165,048 $ 246,760 $ 3,066,279 $ 3,478,087 Receivables Utility taxes - - 26,736 26,736 Accrued interest - 553 6,504 7,057 Other - 52 - 52 Inventories - 35,175 - 35,175 Total current assets 165,048 282,540 3,099,519 3,547,107 FIXED ASSETS Equipment - 136,477 4,000,346 4,136,823 Less accumulated depreciation - (118,307) (2,300,640) (2,418,947) Net fixed assets - 18,170 1,699,706 1,717,876 TOTAL ASSETS $ 165,048 $ 300,710 $ 4,799,225 $ 5,264,983 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable $ - $ 16,489 $ - $ 16,489 Accrued payroll - 4,136 - 4,136 Compensated absences payable - 8,434 - 8,434 Claims payable 192,700 - - 192,700 Total current liabilities 192,700 29,059 - 221,759 FUND EQUITY Retained earnings- unreserved(deficit) (27,652) 271,651 4,799,225 5,043,224 Total fund equity (27,652) 271,651 4,799,225 5,043,224 TOTAL LIABILITIES AND FUND EQUITY $ 165,048 $ 300,710 $ 4,799,225 $ 5,264,983 (See independent auditor's report.) -76- VILLAGE OF OAK BROOK,ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS INTERNAL SERVICE FUNDS For the Year Ended December 31,2001 Self Capital Insurance Garage Replacement Total OPERATING REVENUES Charges for services $ 1,493,778 $ 444,100 $ 435,765 $ 2,373,643 Total operating revenues 1,493,778 444,100 435,765 2,373,643 OPERATING EXPENSES Claims and insurance 1,413,763 - - 1,413,763 Garage operations - 370,754 - 370,754 Miscellaneous - - 8,053 8,053 Depreciation - 8,642 309,991 318,633 Total operating expenses 1,413,763 379,396 318,044 2,111,203 OPERATING INCOME 80,015 64,704 117,721 262,440 _ NONOPERATING REVENUES(EXPENSES) Investment income 4,200 12,147 146,675 163,022 Utility taxes - - 28,346 28,346 Total nonoperating revenues(expenses) 4,200 12,147 175,021 191,368 NET INCOME BEFORE OPERATING TRANSFERS 84,215 76,851 292,742 453,808 OPERATING TRANSFERS(OUT) - (20,395) - (20,395) NET INCOME 84,215 56,456 292,742 433,413 RETAINED EARNINGS(DEFICIT),JANUARY 1 (111,867) 215,195 4,506,483 4,609,811 RETAINED EARNINGS(DEFICIT),DECEMBER 31 $ (27,652) $ 271,651 $ 4,799,225 $ 5,043,224 (See independent auditor's report.) -77- i VILLAGE OF OAK BROOK,ILLINOIS i COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31,2001 Self Capital Insurance Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES i Operating income $ 80,015 $ 64,704 $ 117,721 $ 262,440 Depreciation - 8,642 309,991 318,633 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable 4,874 (52) (26,736) (21,914) Inventories - 6,620 - 6,620 Accounts payable (600) (10,465) - (11,065) Accrued payroll and compensated absences - 2,551 - 2,551 Claims payable 18,700 - - 18,700 Net cash from operating activities 102,989 72,000 400,976 575,965 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Utility taxes - - 28,346 28,346 Operating transfers(out) - (20,395) - (20,395) Net cash from non-capital financing activities - (20,395) 28,346 7,951 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets - (7,665) (264,223) (271,888) Net cash from capital and related financing activities - (7,665) (264,223) (271,888) CASH FLOWS FROM INVESTING ACTIVITIES .� Sale of investments 41,217 41,749 482,115 565,081 Interest received 4,775 13,096 157,254 175,125 Net cash from investing activities 45,992 54,845 639,369 740,206 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 148,981 98,785 804,468 1,052,234 CASH AND CASH EQUIVALENTS, JANUARY 1 16,067 84,824 1,518,759 1,619,650 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 165,048 $ 183,609 $ 2,323,227 $ 2,671,884 i CASH AND INVESTMENTS Cash and cash equivalents $ 165,048 $ 183,609 $ 2,323,227 $ 2,671,884 Investments - 63,151 743,052 806,203 TOTAL CASH AND INVESTMENTS $ 165,048 $ 246,760 $ 3,066,279 $ 3,478,087 (See independent auditor's report.) -78- VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS-BUDGET AND ACTUAL SELF-INSURANCE FUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services $ 1,547,950 $ 1,493,778 $ (54,172) Total operating revenues 1,547,950 1,493,778 (54,172) OPERATING EXPENSES Claims and insurance Insurance and administration 233,470 222,896 10,574 Health claims 1,140,000 1,082,140 57,860 Dental claims 130,200 108,727 21,473 Total operating expenses 1,503,670 1,413,763 89,907 OPERATING INCOME 44,280 80,015 35,735 NONOPERATING REVENUES (EXPENSES) Investment income 10,000 4,200 (5,800) Total nonoperating revenues(expenses) 10,000 4,200 (5,800) NET INCOME $ 54,280 84,215 $ 29,935 RETAINED EARNINGS (DEFICIT),JANUARY 1 (111,867) RETAINED EARNINGS (DEFICIT),DECEMBER 31 $ (27,652) (See independent auditor's report.) -79- VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS-BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services $ 444,100 $ 444,100 $ - Total operating revenues 444,100 444,100 OPERATING EXPENSES EXCLUDING DEPRECIATION _ Garage operations Personnel 142,465 142,462 3 Materials and supplies 245,445 214,393 31,052 Operations and contractual 6,040 5,154 886 Capital outlay 25,800 16,410 9,390 Total operating expenses excluding depreciation 419,750 378,419 41,331 OPERATING INCOME 24,350 65,681 41,331 NONOPERATING REVENUES (EXPENSES) Investment income 9,900 12,147 2,247 Total nonoperating revenues(expenses) 9,900 12,147 2,247 NET INCOME BEFORE OPERATING TRANSFERS 34,250 77,828 43,578 - OPERATING TRANSFERS (OUT) (20,395) (20,395) - NET INCOME-BUDGETARY BASIS $ 13,855 57,433 $ 43,578 ADJUSTMENTS TO GAAP BASIS Capital expenditures 7,665 Depreciation expense (8,642) Total adjustments to GAAP basis (977) NET INCOME- GAAP BASIS 56,456 RETAINED EARNINGS,JANUARY 1 215,195 RETAINED EARNINGS,DECEMBER 31 $ 271,651 (See independent auditor's report.) -80- VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS -BUDGET AND ACTUAL CAPITAL REPLACEMENT FUND For the Year Ended December 31,2001 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services $ 448,725 $ 435,765 $ (12,960) Total operating revenues 448,725 435,765 (12,960) OPERATING EXPENSES EXCLUDING DEPRECIATION -- Capital outlay 481,460 272,276 209,184 Total operating expenses excluding depreciation 481,460 272,276 209,184 OPERATING INCOME(LOSS) (32,735) 163,489 196,224 NONOPERATING REVENUES (EXPENSES) Investment income 137,500 146,675 9,175 Utility taxes - 28,346 28,346 Total nonoperating revenues(expenses) 137,500 175,021 37,521 NET INCOME-BUDGETARY BASIS $ 104,765 338,510 $ 233,745 ADJUSTMENTS TO GAAP BASIS Capital expenditures 264,223 Depreciation expense (309,991) '— Total adjustments to GAAP basis (45,768) NET INCOME-GAAP BASIS 292,742 RETAINED EARNINGS,JANUARY 1 4,506,483 RETAINED EARNINGS,DECEMBER 31 $ 4,799,225 (See independent auditor's report.) '" - 81 - 7 lr. 6.. FIDUCIARY FUND TYPES 6. L 6. PENSION TRUST FUNDS Police Pension Fund- to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn police personnel at rates fixed by State Statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. Firefighters' Pension Fund - to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn fire personnel at rates fixed by State Statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. VILLAGE OF OAK BROOK, ILLINOIS COMBINING BALANCE SHEET TRUST AND AGENCY FUNDS December 31, 2001 Pension Trust Funds _ Police Firefighter's Pension Pension Total ASSETS Cash $ 295,668 $ 173,632 $ 469,300 Investments Illinois Funds 23,139 394,884 418,023 Certificates of Deposit - 1,476,000 1,476,000 U.S. Treasury Securities 5,132,265 3,083,211 8,215,476 U.S. Agency Securities 7,883,439 4,260,188 12,143,627 State and Local Obligations 835,562 - 835,562 Mutual Funds 6,184,676 7,352,483 13,537,159 Insurance Contracts - 652,075 652,075 Accrued interest receivable 141,320 105,086 246,406 TOTAL ASSETS $ 20,496,069 $ 17,497,559 $ 37,993,628 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ - $ 10,313 $ 10,313 _ Total liabilities - 10,313 10,313 FUND BALANCES Reserved 20,496,069 17,487,246 37,983,315 TOTAL LIABILITIES AND FUND BALANCES $ 20,496,069 $ 17,497,559 $ 37,993,628 (See independent auditor's report.) - 82 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUNDS For the Year Ended December 31, 2001 Police Firefighter's Pension Pension Total ADDITIONS Contributions Employer contributions $ 271,765 $ 357,272 $ 629,037 Employee contributions 233,998 170,038 404,036 Total contributions 505,763 527,310 1,033,073 Investment income Net appreciation(depreciation) in fair value of investments (414,777) (594,761) (1,009,538) Interest 705,142 408,091 1,113,233 Total investment income 290,365 (186,670) 103,695 Less investment expense (35,079) (45,289) (80,368) Net investment income 255,286 (231,959) 23,327 Total additions 761,049 295,351 1,056,400 w DEDUCTIONS _ Benefits and refunds 679,234 825,216 1,504,450 Administrative 33,903 33,520 67,423 Total deductions 713,137 858,736 1,571,873 NET INCREASE (DECREASE) 47,912 (563,385) (515,473) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,448,157 18,050,631 38,498,788 December 31 $ 20,496,069 $ 17,487,246 $ 37,983,315 (See independent auditor's report.) - 83 - VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2001 i Budget Actual Variance ADDITIONS Contributions Employer contributions $ 298,200 $ 271,765 $ (26,435) Employee contributions 252,800 233,998 (18,802) Total contributions 551,000 505,763 (45,237) Investment income Net appreciation(depreciation) in fair value of investments - (414,777) (414,777) Interest 1,470,000 705,142 (764,858) Ak Total investment income 1,470,000 290,365 (1,179,635) Less investment expense (35,000) (35,079) 79 Net investment income 1,435,000 255,286 (1,179,556) Total additions 1,986,000 761,049 (1,224,793) DEDUCTIONS Benefits and refunds 710,000 679,234 30,766 Administrative 28,425 33,903 (5,478) Total deductions 738,425 713,137 25,288 NET INCREASE(DECREASE) $ 1,247,575 47,912 $ (1,199,505) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,448,157 December 31 $ 20,496,069 (See independent auditor's report.) - 84 - VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CHANGES IN PLAN NET ASSETS -BUDGET AND ACTUAL FIREFIGHTERS' PENSION FUND For the Year Ended December 31, 2001 Budget Actual Variance ADDITIONS Contributions Employer contributions $ 339,295 $ 357,272 $ 17,977 Employee contributions 173,900 170,038 (3,862) Total contributions 513,195 527,310 14,115 Investment income Net appreciation(depreciation) in fair value of investments - (594,761) (594,761) Interest 1,400,000 408,091 (991,909) Total investment income 1,400,000 (186,670) (1,586,670) Less investment expense (49,000) (45,289) (3,711) -- Net investment income 1,351,000 (231,959) (1,590,381) Total additions 1,864,195 295,351 (1,576,266) DEDUCTIONS Benefits and refunds 852,985 825,216 27,769 Administrative 30,940 33,520 (2,580) Total deductions 883,925 858,736 25,189 NET INCREASE(DECREASE) $ 980,270 (563,385) $ (1,551,077) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 18,050,631 December 31 $ 17,487,246 (See independent auditor's report.) - 85 - ; ACCOUNT GROUP two ism 4. L M.r , L. GENERAL FIXED ASSETS ACCOUNT GROUP General Fixed Assets Account Group - to account for fixed assets not accounted for in Proprietary or Trust Funds. VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE r GENERAL FIXED ASSETS ACCOUNT GROUP December 31, 2001 .. GENERAL FIXED ASSETS Land $ 616,829 Buildings and improvements 4,646,669 Other equipment 2,071,221 Computer equipment 1,525,113 Construction in progress 8,231,696 TOTAL GENERAL FIXED ASSETS $ 17,091,528 INVESTMENT IN GENERAL FIXED ASSETS Current revenues $ 12,003,831 Proceeds of indebtedness 4,162,755 Gifts 924,942 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 17,091,528 r (See independent auditor's report.) - 86 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF GENERAL FIXED ASSETS-BY FUNCTION AND ACTIVITY GENERAL FIXED ASSETS ACCOUNT GROUP December 31,2001 w Construction Buildings and Other Computer In Land Improvements Equipment Equipment Progress Totals GENERAL GOVERNMENT Board of trustees $ 616,829 $ 78,536 $ 7,508 $ - $ - $ 702,873 Village clerk - 1,756,130 19,716 - - 1,775,846 General management - 642,836 55,145 - 3,593,661 4,291,642 General services - 8,225 - - 8,225 Emergency management - - 12,156 - - 12,156 Village communication center - - 95,980 - - 95,980 Purchasing and grants - - 941 - - 941 Information services - 2,257 - 1,525,113 - 1,527,370 Financial services - - 21,512 - - 21,512 Engineering - - 46,737 - - 46,737 Total general government 616,829 2,479,759 267,920 1,525,113 3,593,661 8,483,282 PUBLIC SAFETY Police department - 126,382 616,503 - - 742,885 Fire department - 819,552 89.7,477 - - 1,717,029 Total public safety - 945,934 1,513,980 - - 2,459,914 s„ PUBLIC WORKS Administrative - 682,409 14,977 - - 697,386 Street maintenance - 268,144 170,438 - - 438,582 Forestry - - 65,335 - - 65,335 Total public works - 950,553 250,750 - - 1,201,303 R� CULTURE AND RECREATION Library - 270,423 38,571 - 4,638,035 4,947,029 Total culture and recreation - 270,423 38,571 - 4,638,035 4,947,029 TOTAL GENERAL FIXED ASSETS $ 616,829 $ 4,646,669 $ 2,071,221 $ 1,525,113 $ 8,231,696 $ 17,091,528 _ (See independent auditor's report.) -87- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -BY FUNCTION AND ACTIVITY GENERAL FIXED ASSETS ACCOUNT GROUP For the Year Ended December 31,2001 Balance Balance January 1 Additions Deletions December 31 GENERAL GOVERNMENT Board of trustees $ 702,873 $ - $ - $ 702,873 Village clerk 20,916 - - 20,916 General management 2,525,380 - 72,469 2,452,911 General services 8,225 - - 8,225 Emergency management 12,156 - - 12,156 Village communication center 90,980 5,000 - 95,980 Purchasing and grants 941 - - 941 Information services 1,350,862 195,053 18,545 1,527,370 Financial services 21,512 - - 21,512 Engineering 30,487 16,250 - 46,737 Total general government 4,764,332 216,303 91,014 4,889,621 PUBLIC SAFETY Police department 764,310 - 21,425 742,885 Fire department 1,653,610 71,876 8,457 1,717,029 Total public safety 2,417,920 71,876 29,882 2,459,914 -PUBLIC WORKS '- Administrative 695,845 5,299 3,758 697,386 Street maintenance 420,582 18,000 - 438,582 Forestry 65,335 - - 65,335 Total public works 1,181,762 23,299 3,758 1,201,303 r CONSTRUCTION IN PROGRESS Village hall 527,045 3,066,616 - 3,593,661 New library 832,546 3,805,489 - 4,638,035 Total construction in progress 1,359,591 6,872,105 - 8,231,696 CULTURE AND RECREATION Library 285,417 23,577 - 308,994 Total culture and recreation 285,417 23,577 - 308,994 TOTAL GENERAL FIXED ASSETS $ 10,009,022 $ 7,207,160 $ 124,654 $ 17,091,528 (See independent auditor's report.) - 88 - STATISTICAL SECTION i tow VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL REVENUES BY SOURCE Last Ten Fiscal Years Fiscal Year 1993 1993* 1994 1995 1996 1997 1998 1999 2000 2001 Intergovernmental $ 10,248,950 $ 7,985,514 $ 11,218,902 $ 12,106,579 $ 12,149,759 $ 12,282,960 $ 12,251,058 $ 12,598,948 $ 11,983,169 $ 10,665,042 Property taxes 963,125 846,501 549,482 5,410 - - - - - - Utility taxes 2,239,243 1,648,740 1,572,193 1,873,147 1,956,984 1,989,147 1,692,113 1,715,573 2,326,035 3,351,774 Hotel/motel taxes 210,066 163,784 235,606 274,041 290,198 312,383 330,953 338,951 353,692 308,101 Licenses and permits 353,747 261,461 322,779 477,624 374,617 404,998 391,789 432,724 623,858 324,131 Service charges 584,727 498,440 293,743 336,146 423,139 305,137 364,650 425,752 389,557 374,409 Fines and penalties 238,858 135,419 280,339 220,593 211,809 214,086 222,239 198,769 223,462 300,311 Investment income 173,404 171,420 426,127 713,992 784,652 983,733 1,043,142 849,568 1,347,175 1,135,564 Miscellaneous 81,625 189,205 233,836 253,327 296,482 246,490 603,548 665,606 1,679,561 497,185 TOTAL REVENUES $ 15,093,745 $ 11,900,484 $ 15,133,007 $ 16,260,859 $ 16,487,640 $ 16,738,934 $ 16,899,492 $ 17,225,891 $ 18,926,509 $ 16,956,517 *During 1993 the Village changed its fiscal year end from April 30 to December 31. This information is for the eight months ended December 31, 1993. NOTE: Includes General, Special Revenue,Debt Service, and Capital Projects Funds. Data Source Village Records -89- VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal Year 1993 1993* 1994 1995 1996 1997 1998 1999 2000 2001 General government $ 1,456,753 $ 914,394 $ 1,669,529 $ 2,329,107 $ 2,596,032 $ 3,402,007 $ 3,307,267 $ 4,032,865 $ 5,114,712 $ 11,569,493 Public safety 5,821,460 4,332,750 6,619,494 6,685,874 6,786,918 6,847,213 7,017,793 7,443,818 8,228,147 8,976,293 Public works 4,076,547 1,574,548 3,423,038 3,363,157 3,097,906 3,680,666 4,050,672 3,811,388 3,368,331 3,782,110 Culture and recreation 418,978 264,471 462,781 539,734 726,820 1,010,800 1,056,802 1,144,361 1,104,942 1,245,024 Debt service 959,375 944,820 944,821 - - - - - - - TOTAL EXPENDITURES $ 12,733,113 $ 8,030,983 $ 13,119,663 $ 12,917,872 $ 13,207,676 $ 14,940,686 $ 15,432,534 $ 16,432,432 $ 17,816,132 $ 25,572,920 *During 1993 the Village changed its fiscal year end from April 30 to December 31. This information is for the eight months ended December 31, 1993. NOTE: Includes General,Special Revenue,Debt Service,and Capital Projects Funds. Data Source Village Records -90- — VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Percent Tax Total Total of Total Tax Fiscal Levy Tax Tax Collections to Year Year Levy Collection Tax Levy ._ 1993 1991 $ 842,077 $ 840,958 99.87% 1993* 1992 848,710 846,501 99.74% 1994 1993 555,221 549,482 98.97% 1995 1994 - - N/A 1996 1995 - - N/A 1997 1996 - - N/A 1998 1997 - - N/A 1999 1998 - - N/A 2000 1999 - - N/A 2001 2000 - - N/A * During 1993 the Village changed its fiscal year end from April 30 to December 31. — This information is for the eight months ended December 31, 1993. NOTE: The Village has levied property taxes for debt service purposes only. The levies were abated by$300,000 paid by the General Fund for 1984-1988,by$300,000 in 1989 paid for by the Debt Service Fund, and by$290,000 paid for by the Debt Service Fund in 1993. All debt was retired in 1994. Data Source Village Records — "" - 91 - VILLAGE OF OAK BROOK, ILLINOIS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Levy Years Real Property Ratio of Estimated Total Assessed Tax Assessed Actual Value to Levy Value Value Total Estimated Year (in thousands) (in thousands) Actual Value 1991 $ 855,836 $ 2,567,508 33.33 1992 878,225 2,634,675 33.33 1993 875,114 2,625,342 33.33 1994 887,591 2,662,773 33.33 1995 905,788 2,717,364 33.33 1996 938,948 2,816,844 33.33 1997 972,447 2,917,341 33.33 1998 1,005,097 3,015,291 33.33 1999 1,045,985 3,137,955 33.33 2000 1,100,468 3,301,404 33.33 i Data Source Office of the County Clerk - - 92 - VILLAGE OF OAK BROOK,ILLINOIS PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Tax Rates Village of Oak Brook 0.0994 0.0977 0.0641 - - - - - - - Basic Town 0.8354 0.8171 0.8348 0.8089 0.7141 0.6095 0.6072 0.5834 0.5601 0.5379 Junior College#502 0.2085 0.2087 0.2058 0.2068 0.2062 0.2053 0.2042 0.2027 0.2006 0.1966 Grade School#53 0.9923 1.0248 1.0683 1.0763 1.0605 1.0458 1.0362 1.0237 0.9862 0.9689 High School#86 1.6855 1.6595 1.6406 1.6122 1.5907 1.4944 1.4885 1.5258 1.4881 1.4367 Oak Brook Park District 0.2037 0.2051 0.2098 0.2064 0.2045 0.1997 0.1932 0.1911 0.1877 0.1674 Hinsdale Sanitary District 0.0080 - - - - - - - - TOTAL TAX RATES 4.0328 4.0129 4.0234 3.9106 3.7760 3.5547 3.5293 3.5267 3.4227 3.3075 NOTE:Includes all county,forest preserve and water commission rates. Property tax rates are per$100 of assessed valuation. Data Source Office of the County Clerk -93- VILLAGE OF OAK BROOK,ILLINOIS RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Last Ten Fiscal Years Fiscal Year 1993 1993* 1994 1995 1996 1997 1998 1999 2000 2001 (1)Population 9,087 9,087 9,087 9,087 9,087 9,087 9,087 9,087 8,702 8,702 (2)Assessed value $ 878,225 $ 878,225 $ 875,114 $ 887,591 $ 905,788 $ 938,948 $ 972,447 $ 1,005,097 $ 1,045,985 $ 1,100,468 (3)Gross general obligation bonded debt 2,650,000 1,800,000 900,000 - - - - - - - (3)Less debt service funds 242,137 261,159 265,447 - - - - - - - Net general bonded debt 2,407,863 1,538,841 634,553 - - - - - - - Ratio of net general bonded debt to assessed value 274.17% 175.22% 72.51% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net general bonded debt per capita $ 264.98 $ 169.35 $ 69.83 $ - $ - $ - $ - $ - $ - $ - *During 1993 the Village changed its fiscal year end from April 30 to December 31. This information is for the eight months ended December 31, 1993. Data Sources (1)U.S.Department of Commerce,Bureau of Census (2)Office of the County Clerk (3)Village Records -94- I VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2001 *Percentage (1) of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt a Village of Oak Brook $ - 100.00 $ - DuPage County 222,260,000 4.61 10,250,958 DuPage Forest Preserve 245,971,835 4.61 11,344,583 DuPage Water Commission 101,915,000 4.84 4,936,131 Park Districts 345,000 11.43 39,446 Elementary School Districts 41,798,000 5.59 2,336,892 — High School Districts 79,323,370 6.53 5,176,838 Unit District 205 40,200,000 7.68 3,087,646 TOTAL $ 731,813,205 $ 37,172,494 * Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Oak Brook, Illinois. ** Amount in column (2) multiplied by amount in column(1). Totals may not be exact due to rounding. Data Source Office of the County Clerk - 95 - VILLAGE OF OAK BROOK,ILLINOIS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Last Ten Fiscal Years Fiscal Year 1993 1993* 1994 1995 1996 1997 1998 1999 2000 2001 Principal $ 850,000 $ 900,000 $ 900,000 $ - $ - $ - $ - $ - $ - $ - Interest 109,375 44,100 44,821 - - - - - - - TOTAL DEBT SERVICE $ 959,375 $ 944,100 $ 944,821 $ - $ - $ - $ - $ - $ - $ - TOTAL GENERAL GOVERNMENTAL EXPENDITURES $ 12,733,113 $ 8,030,983 $ 13,119,663 $ 12,917,872 $ 13,207,676 $ 14,940,686 $ 15,432,534 $ 16,432,432 $ 17,816,132 $ 25,572,920 RATIO OF DEBT SERVICE TO GENERAL GOVERNMENTAL EXPENDITURES 7.53% 11.76% 7.20% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% *During 1993 the Village changed its fiscal year end from April 30 to December 31. This information is for the eight months ended December 31, 1993. Data Source Village Records -96- f i i it i VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF BOND COVERAGE WATERWORKS SYSTEM BONDS Last Ten Fiscal Years Fiscal Year 1993 1993* 1994 1995 1996 1997 1998 1999 2000 2001 Gross revenue $ 4,275,374 $ 2,594,477 $ 4,515,859 $ 3,973,247 $ 3,393,279 $ 3,432,412 $ 3,511,768 $ 3,631,527 $ 3,599,840 $ 3,421,386 Expenses 3,148,968 2,103,182 3,853,645 3,827,515 3,766,251 3,268,633 3,364,481 4,038,892 3,970,741 3,930,927 NET REVENUE AVAILABLE FOR DEBT SERVICE $ 1,126,406 $ 491,295 $ 662,214 $ 145,732 $ (372,972) $ 163,779 $ 147,287 $ (407,365) $ (370,901) $ (509,541) DEBT SERVICE REQUIREMENTS Principal $ 225,000 $ - $ 225,000 $ 250,000 $ 275,000 $ - $ - $ $ - $ - Interest 32,700 16,350 26,850 16,000 5,500 - - - - TOTAL DEBT SERVICE $ 257,700 $ 16,350 $ 251,850 $ 266,000 $ 280,500 $ - $ - $ $ - $ - COVERAGE 4.37 30.05 2.63 0.55 (1.33) - - - - *During 1993 the Village changed its fiscal year end from April 30 to December 31. This information is for the eight months ended December 31, 1993. Data Source Village Records -97- VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC STATISTICS December 31,2001 (2) (2) Per (2) Unemploy- Fiscal (1) Capita Median ment Year Population Income Age Percentage 1970 4,164 $ 8,997 34 0.07% 1984 7,263 22,737 39 3.14 1989 9,151 26,818 41 2.05 1992 9,087 60,347 42 5.70 Data Sources (1)U.S. Census Bureau (2)Illinois Department of Bureau of Labor Statistics -98 - VILLAGE OF OAK BROOK, ILLINOIS PROPERTY VALUE AND CONSTRUCTION Last Ten Fiscal Years Commercial Residential Property Construction Construction '- Fiscal Value Number Value Number Value Year (In Thousands) of Units (In Thousands) of Units (In Thousands) 1993 $ 2,634,675 - $ - 14 $ 13,815 1993* 2,634,675 1 1,753 11 5,114 1994 2,625,342 2 2,602 22 15,834 1995 2,662,773 2 4,000 10 10,000 1996 2,717,364 2 12,345 22 14,035 1997 2,816,844 2 7,980 22 11,533 1998 2,917,341 4 16,655 32 20,047 1999 3,015,291 5 29,983 22 9,894 2000 3,137,955 1 2,000 37 31,587 2001 3,301,404 2 16,246 37 27,972 * During 1993 the Village changed its fiscal year end from April..30 to December 31. This information is for the eight months ended December 31, 1993. Data Source (1)Village Records - 99 - — VILLAGE OF OAK BROOK, ILLINOIS — PRINCIPAL TAXPAYERS December 31, 2001 Percentage 2000 of Total — Assessed Assessed Taxpayers Type of Business Valuation Valuation Oak Brook Urban Venture Shopping Center $ 75,320,860 6.84% McDonald's Corporation Office Buildings 40,870,210 3.71% Metlife Life Insurance 19,429,990 1.77% T. Kemp Archon Group Office Buildings 17,834,690 1.62% SFERS Real Estate Group Executive Towers 14,554,260 1.32% Prime Group Realty Trust Office Buildings 13,970,080 1.27% .., Carramerica Office Buildings 12,465,110 1.13% CTF Hotels and Resorts Hotel 11,259,090 1.02% Equity Office Property Office Building 10,962,580 0.99% Jones, Lang, LaSalle Hotel/Office Building 9,874,470 0.90% $ 226,541,340 20.57% Data Source Office of the County Clerk - 100 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF INSURANCE IN FORCE December 31,2001 Insurance Coverage Amount of Type of Insurance Company Expires Coverage Village Manager's Bond Intergovernmental Risk Management Agency 12/31/01 $ 150,000 Treasurer's Bond Intergovernmental Risk Management Agency 12/31/01 100,000 Host Liquor Liability Lloyds of London Insurance Company 11/24/01 2,000,000 Contingent Business Interruption Insurance for Loss of Sales Tax Revenues Intergovernmental Risk Management Agency 12/31/01 7,000,000 The Village entered into a contractual agreement with 14 other municipalities to form the Intergovernmental Risk Management Agency(IRMA),which through its risk-sharing provisions,provides the Village with its insurance coverage for liability,property damage,workmens'compensation and surety risks not covered by the Village's _Treasurers'or Village Manager's Bond. The Village's contribution to this cooperative agency was determined by the pro rata share for each municipality's audited expenses and create sufficient reserves for claim payments and the purchase of excess insurance. The Agency provides loss protection in excess of a deductible of$1,000 per occurrence to be paid by each municipality. The Agency is required to pay up to$250,000 per occurrence for loss or injury within the scope of its self-insurance coverage for property claims and up to$3,000,000 for general liability and auto liability. The Agency has also purchased excess catastrophe insurance over the amount of its obligations and aggregate stop loss insurance. The amount of excess insurance is$7,000,000 per occurrence for liability claims and$1,000,000,000 for property claims. As of December 31,2001,IRMA members totaled 72 municipalities. Data Source Village Records - 101 - VILLAGE OF OAK BROOK,ILLINOIS MISCELLANEOUS STATISTICS December 31,2001 Date of Incorporation February 21, 1958 Form of Government Seven-member Board of Trustees, including President: _ Village Manager appointed by Board of Trustees Area 8.5 Square Miles i Miles of Streets 55 miles Number of Street Lights 565 Fire Protection Number of stations 2 Number of firefighters 35 Number of paid on call.firefighters 7 Police Protection Number of stations 1 Number of policemen and officers 44 Detention facilities Juvenile 2 Adult 2 Education(Elementary Only) Attendance centers 2 Number of teachers 79 Number of students 535 Municipal Water Department Number of customers 5,490 Total water pumped(in thousands) 1,487,000 gallons ... Average daily consumption 4.073 million gallons Miles of water mains 79 Building permits issued 578 Recreation Oak Brook Sports Core- 265 acres including Bath and Tennis club and 18 hole golf course Oak Brook Park District 110 acres including indoor tennis, outdoor tennis, and recreation and aquatics center DuPage County Forest Preserve 390 acres - 102 - r. VILLAGE OF OAK BROOK, ILLINOIS MISCELLANEOUS STATISTICS (Continued) December 31,2001 Culture Number of libraries 1 Number of books, audiovisual materials, and other collection items 70,238 Census data 1960 324 _ 1970 4,164 1975 5,281 1980 6,641 1984 7,263 1990 9,087 2000 8702 Employees Full-time 160 Part-time/seasonal 257 Data Source Village Records - 103 -