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CAFR (Year Ended December 31, 2002) I� j �4 ' I 1 _ ► Irk x _ W r k � t,, - Y 4' ... NMLGE OF.OAK BROOK CIAL REPORT -` For fie Ym End December 1, 2002 I L ti �1jw; VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2002 Y r Prepared by the Finance Department Darrell J. Langlois Finance Director/Treasurer VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION '- Principal Officials i OrganizationChart............................................................................................................ ii Certificate of Achievement for Excellence in Financial Reporting.................................................................................. Letter of Transmittal from the Finance Director/Treasurer .............................................. iv-xi 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 - .. Pension Trust Funds................................................................................................... 13 Notes to Financial Statements...................................................................................... 14-37 REQUIRED SUPPLEMENTARY INFORMATION 7 Schedule of Funding Progress Illinois Municipal Retirement Fund........................................................................ 38 PolicePension Fund................................................................................................ 39 Firefighters' Pension Fund...................................................................................... 40 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 41 PolicePension Fund................................................................................................ 42 Firefighters' Pension Fund...................................................................................... 43 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........................................................................ 44 -• Schedule of Revenues - Budget and Actual............................................................ 45 Schedule of Expenditures - Budget and Actual....................................................... 46-54 SPECIAL REVENUE FUNDS Combining Balance Sheet....................................................................................... 55 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual...................................................................... 56-57 -` CAPITAL PROJECTS FUND -INFRASTRUCTURE FUND BalanceSheet.......................................................................................................... 58 Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual........................................................................ 59 ENTERPRISE FUNDS Combining Balance Sheet....................................................................................... 60-61 Combining Statement of Revenues, Expenses and Changes in Retained Earnings.................................................................................................. 62 Combining Statement of Cash Flows...................................................................... 63-64 Waterworks System Fund Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual..................................... Schedule of Operating Expenses - Budget and Actual....................................... 66 Schedule of Fixed Assets and Accumulated Depreciation................................. 67-68 Sports Core Fund Combining Statement of Revenues, Expenses and Changes in Retained Earnings -Budget and Actual.............................: y Schedule of Operating Revenues - Budget and Actual....................................... 70 Schedule of Operating Expenses - Budget and Actual....................................... 71-72 Schedule of Fixed Assets and Accumulated Depreciation................................. 73-74 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 Combining Statement of Revenues, Expenses and Changes in RetainedEarnings.................................................................................................. 76 Combining Statement of Cash Flows...................................................................... 77 Statement of Revenues, Expenses and Changes in Retained Earnings - Budget and Actual Self-Insurance Fund............................................................................................ 78 GarageFund....................................................................................................... 79 Capital Replacement Fund.................................................................................. 80 TRUST AND AGENCY FUNDS Combining Statement of Plan Net Assets - Trustand Agency Funds........................................................................................ 81 Combining Statement of Changes in Plan Net Assets - PensionTrust Funds.............................................................................................. 82 Statement of Changes in Plan Net Assets- Budget and Actual PolicePension Fund........................................................................................... 83 Firefighters' Pension Fund................................................................................. 84 GENERAL FIXED ASSETS ACCOUNT GROUP Schedule of General Fixed Assets -by Source........................................................ 85 Schedule of General Fixed Assets-by Function and Activity................................ 86 Schedule of Changes in General Fixed Assets-by Function andActivity........................................................................................................... 87 STATISTICAL SECTION General Governmental Revenues by Source - LastTen Fiscal Years...................................................................................................... 88 General Governmental Expenditures by Function- LastTen Fiscal Years...................................................................................................... 89 Property Tax Levies and Collections - LastTen Fiscal Years...................................................................................................... 90 VILLAGE OF OAK BROOK, ILLINOIS _ TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION(Continued) Assessed and Estimated Actual Value of Taxable Property- Last Ten Levy Years 91 Property Tax Rates-Direct and Overlapping Governments - Last Ten Levy Years ....................................................................................................... 92 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Bonded Debt Per Capita- LastTen Fiscal Years...................................................................................................... 93 l Schedule of Direct and Overlapping Bonded Debt........................................................... 94 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Governmental Expenditures -Last Ten Fiscal Years.................. 95 Schedule of Bond Coverage - Waterworks System Bonds - Last Ten Fiscal Years...................................................................................................... 96 DemographicStatistics ..................................................................................................... 97 Property Value and Construction- LastTen Fiscal Years...................................................................................................... 98 PrincipalTaxpayers........................................................................................................... 99 Schedule of Insurance in Force......................................................................................... 100 Miscellaneous Statistics .................................................................................................... 101-102 VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31,2002 Karen M. Bushy, Village President Linda K. Gonnella, Village Clerk BOARD OF TRUSTEES Stelios Aktipis Susan Chase Korin -- George T. Caleel Elaine Miologos John W. Craig Alfred P. Savino VILLAGE MANAGER r-- Michael A. Crotty,Acting Village Manager FINANCE DEPARTMENT Darrell J. Langlois, Finance Director/Treasurer -i - VILLAGE OF OAK BROOK ORGANIZATIONAL CHART December, 2002 Citizens of Oak Brook Advisory Boards I President and and Commissions [Board of Trustees Village Clerk Electrical Commission Board of Fire&Police CommissionersVillage Attorney Village Manager [Treasurer/Budget Officer Hotel Convention and Visitors Committee Library Commission Plan Commission Safety Pathway Committee Zoning Board of Appeals Police Pension Board Information Services Firefighters'Pension Board &Purchasing Financial Public Engineering and Sorts Commune 9� 9 p Community Services Works Capital Projects Library Police Fire Core Development Certificate of Achievement for Excellence .� in Financial Reporting Presented to Village of Oak Brook, Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31,2001 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. OF �ant�t 9 CAWA COHPORATgN President y a »„ masa 1�!L�'14 �• Executive Director iii v P ego o ® �A o y G � A 2 CO N11 Village of March 3, 2003 )ak Brook President and Board of Trustees '1200 oak Brook Road Village of Oak Brook Oak Brook,IL 60523-2255 Oak Brook, Illinois 60523 Website a- www.oak-brook.org Administration The Comprehensive Annual Financial Report of the Village of Oak Brook for the 630.990.3000 year ended December 31, 2002 is submitted herewith. Responsibility for both . FAX 630.990.0826 the accuracy of the information presented and the thoroughness and fairness of 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 Development 630.990.3045 g manner designed to fairly p set forth the financial position and results of operations ,... FAx 630.990.3985 of the Village as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum Engineering 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 ' Fire Department unaudited, includes this transmittal letter, the Village's organizational chart and a 630.990.3040 list of principal officials as of the end of the reporting period. The financial FAx 630.990.2392 section includes the general purpose financial statements and the combining and �. 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, FAX 630.990.7484 which is generally presented on a multi-year basis. Public Works Department This Report includes all funds and account groups of the Village. Generally 630.990.3044 accepted accounting principles require that the financial reporting entity include - FAx 630.422.0223 (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and Oak Brook significance of their relationship with the primary government are such that 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 ,,,.k Brook,IL 60523-2200 purpose financial statements of the Village. 630.990.2222 FAX 630.990.4509 "ak Brook Sports Core ECONOMIC CONDITION AND OUTLOOK Bath&Tennis Club The Village of Oak Brook is located approximately 15 miles west of the Chicago 200 oak Brook Road Loop, near the geographic center of the seven-county Chicago metropolitan oak Brook,IL 60523-4600 area. Excellent transportation links are provided to all parts of the greater 630.990.3020 metropolitan area by a network of tollways and federal and state highways which FAX 630.990,1002 pass through or near the Village. The Tri-State Tollway (1-294), running along Golf Club the Village's eastern boundary, provides rapid access to the northern and 2606 York Road southern suburbs, and into Wisconsin and Indiana. The East-West Tollway (I- ik Brook,IL 60523-4602 88), passing through the Village's northern sector, joins the Eisenhower `- 630.990.3032 Expressway to the northeast, providing direct access to Chicago's Loop. FAX 630.990.0245 iv In the Future Included in the 2003 budget is the 2003 paving project, completion of construction work on the Municipal Complex Project (mostly renovation of the Police Department), replacement of the roof on the Public Works facility, upgrade and replacement of all mobile data terminals and video units in the police vehicles, 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, 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 various improvements to the water distribution system. 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 $16,739,725 in 2002. vi Percent Increase Of (Decrease) Source Amount Total Over 2001 Intergovernmental $11,524,898 68.85% $ 1,196,236 Utility Taxes 3,364,985 20.10 1,190,801 Licenses and Permits 468,403 2.80 144,272 Service Charges 560,204 3.35 185,795 Fines and Penalties 311,750 1.86 11,439 Interest on Investments 383,719 2.29 (568,852) Miscellaneous 128,766 0.75 (371,419,) ... $16,739,725 100.00% L11788=1,272 Intergovernmental revenue, primarily the general sales tax, is the major revenue source for the Village, producing 68.85% of current year General Fund revenues. The increase noted above is attributed to a large one-time increase in sales taxes for the November, 2002 liability period as well as receipt of grant revenue for partial funding of the Municipal Complex Project. The �- increase in utility tax revenue is due to an increase in the telecommunications tax rate from to 3% to 5% effective November 1, 2001. In addition, for 2002 1% of the 5% tax rate on electric and natural gas sales was shifted from the Infrastructure Fund to the General Fund. Both changes were made in order to address revenue needs of the General Fund due to declines in sales tax revenues over the last several years. The increase in both Licenses and Permits and Service Charges was due to comprehensive increases in the fee schedule for permits and inspections enacted at the end of 2001. The decrease in interest income is due to lower cash and investment balances due to payments on two significant building projects as well as very low rates due to actions of the Federal Reserve Board. The decrease in miscellaneous income is due to receipt of a donation in 2001 from the Oak Brook Library Foundation for $400,000 earmarked for the new Library building. The Village has never levied a real estate tax for general governmental functions. However, the 2001 assessed valuation of real property in the Village was $1,181,481,341, an increase of $81,013,233, or 7.36% over the prior year. Expenditures for general governmental purposes, grouped by function as required by generally accepted accounting principles, totaled $22,587,885 in the General Fund. Percent Increase Of (Decrease) Function Amount Total Over 2001 General Government $10,847,376 48.02% $ (722,117) Public Safety 9,247,222 40.94 311,825 Public Works 1,216,142 5.38 (342,780) Culture and Recreation 1,277,145 5.66 401,637) $22,587.885 100.00 S31435' General Government expenditures decreased due to most expenditures associated with the new Library building occurring in 2001. Public Safety expenditures increased due to normal vii i inflationary factors. Public Works expenditures decreased due to shifting of most non-payroll costs to the Infrastructure Fund for 2002. Culture and Recreation expenditures increased due .� to increased staffing and operating costs of the new Library building. Motor Fuel Tax Fund i 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, 2002 was $250,183, a decrease of $6,687 over 2001. 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 $3,530,105 Water Tap on Charges 45,840 Total Operating Revenues 3,683,958 Total Operating Expenses 4,207,445 Operating Income (Loss) (523,487) Net Income (Loss) (655,582) Sports Core Fund i The 2002 financial statements reflect the 22nd year of operation of the 18-hole golf course and expanded operations of the Bath and Tennis Club. Operating revenues totaled $3,381,826 and " operating expenses, excluding depreciation, totaled $3,748,461. Major department activity is summarized as follows: i Revenues Golf Club $1,893,651 55.99% Food and Beverage 1,217,983 36.02 Bath & Tennis Club 270,192 7.99 $3,381,826 000 Operating Expenses Golf Club $1,325,284 35.36% Food and Beverage 1,201,286 32.05 Bath & Tennis Club 822,350 21.94 Depreciation 399,541 10.65 $3,748 46101 0.00 i Viii .s. 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 107.4% funded, the Police Pension Fund was 87.0% funded, and the Firefighters' Pension Fund was 77.8% 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, 2002, the general fixed assets of the Village amounted to $22,615,788. 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 315` Street were used to call $630,000 of the certificates during 2001, with the remainder being repaid from Sports Core Fund revenues. In order to take advantage of lower interest rates, the interest rate on this installment contract was renegotiated from 4.96% to 2.5% during 2002. Both certificate issues are considered obligations of the Sports Core Fund. 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. ix 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, 2002 the Village's investments, exclusive of the Pension Trust Funds, were distributed as follows: Illinois Funds 55.67% U. S. Government and Agency Securities 10.13 Illinois Metropolitan Investment Fund 34.20 100.00 For the year ended December 31, 2002 the Village received $737,817 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, 2001. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting .,., principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village has successfully obtained the Certificate of Achievement for 25 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. X 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. o� Darrell J. Lar@lois �- Finance Director/Treasurer xi I , 11 I -�I I I � .I -�I � -�, I-I I � I I I I I � - - I I I I I I I I I L� I I - I I I �� I-:: , -, I,�,,, � �, I,� � I I I� - I : � � �,�, I ,-- - "I I I - I � I -I . � : I - � I, ,�:I I �� I - � , .,.;,�-I- ,I - ` ,, I�:, � , , � , I :1� 11, - I � I :� , � I , I I - I , -I I I- I � L , - ,- , � �I��,:,�� ,,��, - , � ,-�: I � :I I , " ---.1 , � � .I, � - I I I ,,�"I, ,: I I I I I i � . T . ` �" �L-� I ,� -1�1 - I � -� —, - , � � I � - I I � _ �, �, 11 I j j �IL I � I � I I I , ,-:�, - , , -, -�,:,-, , , - I ,,"� I �, , , , - -,, , , -� � , 1 1� I � I I- I - I -L, I I: , ,.---,-�,�--,-� , , I ,�;�,,,�,,,,,".y� , � �'e,-, �,2�;�-,:, ,� I I ,, r2 �,,`,,� � ,: ,-�:" I I I :,r .-,, , �-�,,', - 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, 2002, as listed in the table of contents. These general purpose financial statements are the responsibility of the Village of Oak Brook's 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, 2002, 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. Aurora, Illinois March 3, 2003 - 2 - (This page is intentionally left blank.) i VILLAGE OF OAK BROOK,ILLINOIS COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS i December 31, 2002 Governmental Fund Types Special Capital General Revenue Projects ASSETS Cash and investments $ 8,314,139 $ 1,254,476 $ 1,849,553 Receivables Sales taxes 2,857,336 - - Utility taxes 448,726 - 164,531 Accounts 78,035 - - Allotments - 23,527 - Accrued interest 14,290 1,613 1,645 Other 113,084 34,885 143,419 Due from other funds 1,613,827 - - Advances to other funds 1,140,000 - - Inventories 2,795 - - — 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 $ 14,582,232 $ 1,314,501 $ 2,159,148 - 3 - Fiduciary Account Groups Proprietary Fund Types Fund Types General General Total Internal Trust and Fixed Long-Term (Memorandum Enterprise Service Agency Assets Debt Only) $ 4,497,977 $ 3,912,083 $ 36,536,642 $ - $ - $ 56,364,870 - - - - - 2,857,336 - 23,394 - - - 636,651 355,780 - - - - 433,815 - - - - - 23,527 4,511 3,254 240,342 - - 265,655 66,795 31 - - - 358,214 - - - - - 1,613,827 - - - - - 1,140,000 171,308 38,211 - - - 212,314 123,511 - - - - 123,511 23,780,474 1,624,335 - 22,615,788 - 48,020,597 1,469,013 - - - - 1,469,013 - - - - 3,784,086 3,784,086 $ 30,469,369 $ 5,601,308 $ 36,776,984 $ 22,615,788 $ 3,784,086 $ 117,303,416 (This statement is continued on the following pages.) -4 - VILLAGE OF OAK BROOK, ILLINOIS COMBINED BALANCE SHEET(Continued) ALL FUND TYPES AND ACCOUNT GROUPS December 31,2002 Governmental Fund Types Special Capital ^� General Revenue Projects LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts payable $ 1,193,183 $ 151,191 $ 117,233 Accrued payroll 484,016 - - Accrued interest payable - - - Compensated absences payable 611,807 Claims payable - - - Deposits payable 644,991 - 14,640 Deferred revenue 25,653 - - _ Due to other funds - - - Advances from other funds - - - Installment contract payable - - - _ Capital lease payable - - - Total liabilities 2,959,650 151,191 131,873 EQUITY AND OTHER CREDITS Investment in general fixed assets - - - Contributed capital - - - Retained earnings Reserved for golf surcharge - - - Unreserved - - Fund balances Reserved for inventories 2,795 - - Reserved for advances 1,140,000 - - Reserved for employee retirement - - - Unreserved 10,479,787 1,163,310 2,027,275 Total equity and other credits 11,622,582 1,163,310 2,027,275 TOTAL LIABILITIES,EQUITY AND OTHER CREDITS $ 14,582,232 $ 1,314,501 $ 2,159,148 - 5 - Fiduciary Account Groups Proprietary Fund Types Fund Types General General Total Internal Trust and Fixed Long-Term (Memorandum Enterprise Service Agency Assets Debt Only) $ 289,406 $ 39,242 $ 15,282 $ - $ - $ 1,805,537 61,406 10,125 - - - 555,547 _ 10,674 - - - - 10,674 60,746 10,088 - - 169,086 851,727 - 223,031 - - - 223,031 41,895 - - - - 701,526 29,651 - - - - 55,304 1,613,827 - - - - 1,613,827 1,140,000 - - - - 1,140,000 1,485,000 - - - 3,615,000 5,100,000 38,136 - - - - 38,136 4,770,741 282,486 15,282 - 3,784,086 12,095,309 - - - 22,615,788 - 22,615,788 11,233,036 - - - - 11,233,036 123,511 - - - - 123,511 14,342,081 5,318,822 - - - 19,660,903 - - - - - 2,795 - - - 1,140,000 - 36,761,702 - - 36,761,702 - - - - - 13,670,372 25,698,628 5,318,822 36,761,702 22,615,788 - 105,208,107 $ 30,469,369 $ 5,601,308 $ 36,776,984 $ 22,615,788 $ 3,784,086 $ 117,303,416 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 31,2002 Total Special Capital (Memorandum .� General Revenue Projects Only) REVENUES Intergovernmental $ 11,524,898 $ 281,289 $ 208,923 $ 12,015,110 Utility taxes 3,364,985 - 1,057,073 4,422,058 Hotel/motel taxes - 297,911 - 297,911 Licenses and permits 468,403 - - 468,403 -- Charges for services 560,204 - - 560,204 Fines and penalties 311,750 - - 311,750 Investment income 383,719 42,253 60,177 486,149 Donations 25,000 - - 25,000 Miscellaneous 100,766 - - 100,766 Total revenues 16,739,725 621,453 1,326,173 18,687,351 EXPENDITURES Current General government 10,847,376 - - 10,847,376 Public safety 9,247,222 22,174 - 9,269,396 Public works 1,216,142 - 556,289 1,772,431 Culture and recreation 1,277,145 325,874 - 1,603,019 Capital outlay - - 917,478 917,478 Total expenditures 22,587,885 348,048 1,473,767 24,409,700 EXCESS(DEFICIENCY)OF REVENUES _ OVER EXPENDITURES (5,848,160) 273,405 (147,594) (5,722,349) OTHER FINANCING SOURCES(USES) Operating transfers in 297,000 - 238,307 535,307 Operating transfers(out) (148,400) (248,307) - (396,707) Sale of fixed assets 39,000 - - 39,000 Total other financing sources(uses) 187,600 (248,307) 238,307 177,600 EXCESS(DEFICIENCY)OF REVENUES ._ AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES (5,660,560) 25,098 90,713 (5,544,749) FUND BALANCES,JANUARY 1 17,283,142 1,138,212 1,936,562 20,357,916 FUND BALANCES,DECEMBER 31 $ 11,622,582 $ 1,163,310 $ 2,027,275 $ 14,813,167 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 31,2002 General Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental $ 10,757,065 $ 11,524,898 $ 767,833 _ Utility taxes 3,700,000 3,364,985 (335,015) Hotel/motel taxes - - - Licenses and permits 398,550 468,403 69,853 Charges for services 394,500 560,204 165,704 Fines and penalties 267,000 311,750 44,750 Investment income 425,000 383,719 (41,281) Donations - 25,000 25,000 Miscellaneous 65,700 100,766 35,066 Total revenues 16,007,815 16,739,725 731,910 EXPENDITURES Current General government 10,922,910 10,847,376 75,534 Public safety 9,288,855 9,247,222 41,633 Public works 1,238,330 1,216,142 22,188 Culture and recreation 1,308,805 1,277,145 31,660 Capital outlay - - - Total expenditures 22,758,900 22,587,885 171,015 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (6,751,085) (5,848,160) 902,925 OTHER FINANCING SOURCES(USES) Operating transfers in 297,000 297,000 - Operating transfers(out) (148,400) (148,400) - Sale of fixed assets - 39,000 39,000 Total other financing sources(uses) 148,600 187,600 39,000 EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES ... OVER EXPENDITURES AND OTHER FINANCING USES $ (6,602,485) (5,660,560) $ 941,925 FUND BALANCES,JANUARY 1 17,283,142 FUND BALANCES,DECEMBER 31 $ 11,622,582 -8- Special Revenue Capital Projects Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 277,800 $ 281,289 $ 3,489 $ 305,700 $ 208,923 $ (96,777) - - - 1,251,000 1,057,073 (193,927) 347,000 297,911 (49,089) - - - 29,000 42,253 13,253 64,000 60,177 (3,823) 653,800 621,453 (32,347) 1,620,700 1,326,173 (294,527) 31,500 22,174 9,326 - - - - - - 590,745 556,289 34,456 429,140 325,874 103,266 - - - - - - 1,274,000 917,478 356,522 460,640 348,048 112,592 1,864,745 1,473,767 390,978 193,160 273,405 80,245 (244,045) (147,594) 96,451 - - - 525,000 238,307 (286,693) (535,000) (248,307) 286,693 - - - (535,000) (248,307) 286,693 525,000 238,307 (286,693) $ (341,840) 25,098 $ 366,938 $ 280,955 90,713 $ (190,242) 1,138,212 1,936,562 $ 1,163,310 $ 2,027,275 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, 2002 Total Internal (Memorandum Enterprise Service Only) OPERATING REVENUES Charges for services $ 7,017,437 $ 2,164,519 $ 9,181,956 Miscellaneous 48,347 - 48,347 — Total operating revenues 7,065,784 2,164,519 9,230,303 OPERATING EXPENSES Operations 7,034,648 448,977 7,483,625 Claims and insurance - 1,515,075 1,515,075 Miscellaneous - 1,400 1,400 Depreciation and amortization 921,258 335,501 1,256,759 Total operating expenses 7,955,906 2,300,953 10,256,859 OPERATING INCOME(LOSS) (890,122) (136,434) (1,026,556) -� NONOPERATING REVENUES (EXPENSES) Investment income 146,024 105,644 251,668 — Utility taxes - 322,108 322,108 Gain on sale of fixed assets - 5,280 5,280 Interest expense (81,067) - (81,067) ... Total nonoperating revenues (expenses) 64,957 433,032 497,989 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (825,165) 296,598 (528,567) OPERATING TRANSFERS Operating transfers in 148,400 - 148,400 Operating transfers (out) (266,000) (21,000) (287,000) Total operating transfers (117,600) (21,000) (138,600) NET INCOME(LOSS) (942,765) 275,598 (667,167) RETAINED EARNINGS,JANUARY 1 15,408,357 5,043,224 20,451,581 RETAINED EARNINGS,DECEMBER 31 $ 14,465,592 $ 5,318,822 $ 19,784,414 See accompanying notes to financial statements. - 10- a T (This page is intentionally left blank.) 1 VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 2002 Total Internal (Memorandum —' Enterprise Service Only) CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ (890,122) $ (136,434) $ (1,026,556) Depreciation and amortization 921,258 335,501 1,256,759 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable (34,679) 3,363 (31,316) Other receivable (30,118) - (30,118) Inventories 14,229 (3,036) 11,193 Accounts payable (178,787) 22,753 (156,034) Accrued payroll and compensated absences 16,471 7,643 24,114 Claims payable - 30,331 30,331 Deposits payable (3,605) - (3,605) Deferred revenue 4,267 - 4,267 Net cash from operating activities (181,086) 260,121 79,035 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Utility taxes - 322,108 322,108 Borrowings from other funds 180,452 - 180,452 Operating transfers in 148,400 - 148,400 Operating transfers(out) (266,000) (21,000) (287,000) Net cash from non-capital _ financing activities 62,852 301,108 363,960 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets (92,381) (261,245) (353,626) Proceeds from sale of fixed assets - 24,564 24,564 Principal paid on installment contract payable (225,000) - (225,000) Principal paid on capital lease payable (33,241) - (33,241) Interest paid (84,611) - (84,611) _ Net cash from capital and related financing activities (435,233) (236,681) (671,914) (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 31,2002 a Total Internal (Memorandum Enterprise Service Only) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments $ (92,879) $ (324,734) $ (417,613) Sale of investments 62,031 - 62,031 Interest received 154,953 109,447 264,400 Net cash from investing activities 124,105 (215,287) (91,182) NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS (429,362) 109,261 (320,101) CASH AND CASH EQUIVALENTS, JANUARY 1 3,473,748 2,671,884 6,145,632 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 3,044,386 $ 2,781,145 $ 5,825,531 CASH AND INVESTMENTS Cash and cash equivalents $ 3,044,386 $ 2,781,145 $ 5,825,531 Investments(including$123,511 of restricted assets) 1,577,102 1,130,938 2,708,040 TOTAL CASH AND INVESTMENTS $ 4,621,488 $ 3,912,083 $ 8,533,571 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, 2002 ADDITIONS Contributions Employer contributions $ 755,587 Employee contributions 426,608 Total contributions 1,182,195 Investment income Net appreciation (depreciation) in fair value of investments (1,622,731) Interest 1,104,058 Total investment income (518,673) Less investment expense (80,810) Net investment income (599,483) Total additions 582,712 -' DEDUCTIONS Benefits and refunds 1,712,803 Administrative 91,522 Total deductions 1,804,325 NET INCREASE (DECREASE) (1,221,613) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 37,983,315 r December 31 $ 36,761,702 — See accompanying notes to financial statements. - 13 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS •.- December 31, 2002 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ® The financial statements of the Village of Oak Brook, Illinois (the Village)have been prepared in conformity with accounting principles generally accepted in the United States of America(hereinafter referred to as generally accepted accounting principles (GAAP)), as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below. .,. a. Reporting Entity The Village operates under a Village form of government with an elected Village -- President and Board of Trustees. Operational management is provided by a professional Village Manager employed by the Board of Trustees. Municipal services include police protection, fire protection, recreation facilities, a free public library,water supply, storm water collection,public works operations, road maintenance,building and inspectional services and general administrative services. As required by generally accepted accounting principles, these financial statements present the Village (the primary government) and its component units. The Village's financial statements include the following pension trust funds: Police Pension Employees Retirement System a 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. i 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) �- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting(Continued) 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 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 r 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 r 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. - - 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. in. 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. 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 interf ind 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 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. - 21 - = VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 2. LEGAL COMPLIANCE AND ACCOUNTABILITY(Continued) b. Deficit Fund Balance/Retained Earnings of Individual Funds The following fund had a deficit in retained earnings as of December 31, 2002: Deficit Fund Balance Sports Core $ 923,020 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$3,900 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 not-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) _ 3. DEPOSITS AND INVESTMENTS (Continued) a. Deposits At year-end, the carrying amount of the Village's deposits with financial institutions totaled $179,860 and the bank balances totaled $216,889. The bank balance can be categorized as follows: 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. $ 216,889 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 $ 216,889 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. - 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 $ 5,669,836 $ - $ 4,396,566 $10,066,402 U.S.agency securities 5,505,974 - 8,670,558 14,176,532 State and local obligations - - 1,132,085 1,132,085 Negotiable certificates of deposit 884,000 - - 884,000 $12,059,810 $ - $14,199,209 26,259,019 *Mutual Funds 11,052,032 *The Illinois Funds 11,176,461 *Illinois Metropolitan Investment Fund 6,746,171 *Life Insurance Contracts 509,971 *Money Market Mutual Funds 560,967 TOTAL INVESTMENTS $56,304,621 *(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$183,760 and investments of$56,304,621 totaling $56,488,381 are reported in the financial statements as follows: Cash and investments $ 56,364,870 Restricted assets,cash and investments 123,511 TOTAL - $ 56,488,381 4. RECEIVABLES - TAXES '— Property taxes for 2002 attach as an enforceable lien on January 1, 2002, on property values assessed as of the same date. Taxes are levied by December 31 of the fiscal year by passage of a Tax Levy Ordinance. Tax bills are prepared by the County and issued on or about May 1, 2003 and August 1, 2003 and are payable in two installments, on or about June 1, 2003 and September 1, 2003. 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 - 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 I and Transfers and Transfers December 31 Land $ 616,829 $ - $ - $ 616,829 Building and equipment 4,646,669 5,624,348 864,402 9,406,615 Other equipment 2,071,221 367,557 58,792 2,379,986 Computer equipment 1,525,113 87,287 30,740 1,581,660 —' Construction in progress 8,231,696 5,754,496 5,355,494 8,630,698 TOTAL GENERAL FIXED ASSETS $ 17,091,528 $ 11,833,688 $ 6,309,428 $ 22,615,788 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 $ 11,199,014 $ - Building and improvements 6,839,763 - Automotive equipment - 4,097,931 Equipment 2,222,888 136,477 Waterworks system 15,624,684 - Construction in progress 122,088 - 36,008,437 4,234,408 Less accumulated depreciation 12,227,963 2,610,073 TOTAL $ 23,780,474 $ 1,624,335 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) 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 $ 9,779,835 $ 8,766,415 $ 1,013,420 2002 Paving Project 274,193 259,222 14,971 '— 2003 Paving Project 56,036 13,602 42,434 Municipal Complex Landscaping 103,678 82,207 21,471 TOTALS $ 10,213,742 $ 9,121,446 $ 1,092,296 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(IRNA) 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 $60,000 per individual for medical claims up to a maximum limit of $1,947,947 for all individuals. Commercial insurance is carried for amounts in excess of the self-insured amounts. Settlements did not exceed insurance coverage in any of the last three years. The Village is entirely self-insured for dental claims up to the annual benefit limit of$1,000 per individual. The Village's self-insurance activities are reported in the Self-Insurance Fund, an Internal Service Fund. Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and other funds 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 $223,031. A reconciliation of claims payable for the current year and that of the preceding year is as follows: — 2002 2001 CLAIMS PAYABLE,BEGINNING OF YEAR $ 192,700 $ 174,000 Claims incurred and changes in estimate 1,291,789 1,190,867 Claims paid (1,261,458) (1,172,167) CLAIMS PAYABLE,END OF YEAR $ 223,031 $ 192,700 7. LONG-TERM DEBT Installment Contract Payable The Village has issued three installment contracts payable to provide funds for the _ acquisition of capital assets. The installment contracts payable currently outstanding are as follows: Fund Debt Balance, Balance, 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 $ 685,000 $ - $ 75,000 $ 610,000 - 27 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) Installment Contract Payable (Continued) Fund Debt Balance, Balance, Issue Retired by January 1 Issuances Retirements December 31 General Fund Certificates,Series 2000 dated December 1,2000,2.50%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 1 and December 1 of each year,secured by sales and use taxes. Installments due in 2008 through 2010 were Sports called in 2001. Core $ 1,025,000 $ - $ 150,000 $ 875,000 General Fund Certificates,Series 2001 dated December 1,2000,interest at 4.625% to 4.70%,due in annual installments ranging from$190,000 to$370,000 through December 1,2010,interest payable June 1 and December 1 of each year,secured by sales and use taxes. General 3,810,000 - 195,000 3,615,000 TOTAL $5,520,000 $ - $ 420,000 $ 5,100,000 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 Fund. The capital lease payable currently outstanding is as follows: Fund Debt Balance, Balance, Issue Retired by January 1 Issuances Retirements December 31 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 through October 25,2004,interest payable monthly from May 15 through October 15 Sports of each year,secured by equipment. Core $ 73,880 $ - $ 35,744 $ 38,136 -28 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Fiscal Year Installment Contracts Ending Payable Capital Lease Payable Totals December 31, Principal Interest Principal Interest Principal Interest - 2003 $ 440,000 $ 220,810 $ 38,136 $ 1,574 $ 478,136 $ 222,384 2004 460,000 203,632 - - 460,000 203,632 2005 485,000 185,619 - - 485,000 185,619 2006 505,000 166,647 - - 505,000 166,647 2007 530,000 146,963 - - 530,000 146,963 _ 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 $ 5,100,000 $ 1,494,030 $ 38,136 $ 1,574 $ 5,138,136 $ 1,495,604 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 Balances January 1 Additions Reductions December 31 Installment contracts payable $ 3,810,000 $ - $ 195,000 $ 3,615,000 Compensated absences 152,195 16,891 - 169,086 TOTAL GENERAL LONG-TERM DEBT ACCOUNT GROUP $ 3,962,195 $ 16,891 $ 195,000 $ 3,784,086 Legal Debt Margin 2001 assessed valuation(latest information available) $1,181,481,341 Legal debt limit-8.625%of assessed valuation $ 101,902,766 Amount of debt applicable to debt limit 5,100,000 LEGAL DEBT MARGIN $ 96,802,766 - 29 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 8. INTERFUND ASSETS/LIABILITIES Individual fund interfund receivable and payable balances as of December 31, 2002 are as follows: Due From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 1,613,827 Advance From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 1,140,000 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 2003 $ 842,000 2004 842,000 2005 842,000 2006 842,000 2007 842,000 Thereafter 14,314,000 TOTAL $ 18,524,000 — 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. — - 30 - a VILLAGE OF OAK BROOK, ILLINOIS _ NOTES TO FINANCIAL STATEMENTS (Continued) 10. SEGMENT INFORMATION- ENTERPRISE FUNDS The Village 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 $ 3,683,958 $ 3,381,826 $ 7,065,784 Depreciation and amortization expense 521,717 399,541 921,258 Operating income (loss) (523,487) (366,635) (890,122) Operating transfers in - 148,400 148,400 Operating transfers out (266,000) - (266,000) Net income (loss) (655,582) (287,183) (942,765) Property,plant and equipment Additions 211,913 87,914 299,827 _ Deletions 133,860 13,251 147,111 Total assets 15,887,346 14,582,023 30,469,369 Net working capital 4,550,907 (1,835,277) 2,715,630 _ Bonds and other long-term liabilities payable from operating revenues - 2,663,136 2,663,136 Total equity 15,596,058 10,102,570 25,698,628 11. CONTRIBUTED CAPITAL During the fiscal year, changes occurred in contributed capital as follows: Enterprise Increases $ 207,446 Decreases - Net increase(decrease) 207,446 CONTRIBUTED CAPITAL, JANUARY 1 11,025,590 CONTRIBUTED CAPITAL,DECEMBER 31 $ 11,233,036 _ 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. - 31 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. CONTINGENT LIABILITIES (Continued) Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected,may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. DuPage Water Commission The Village's agreement with the DuPage Water Commission provides that each member is liable for its proportionate share of any cost arising from defaults in payment obligations by other members. 13. 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 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 1MRF as specified by statute. The employer contribution for the year ended December 31, 2001 was 7.24% of covered payroll. - 32 - VILLAGE OF OAK BROOK,ILLINOIS _ NOTES TO FINANCIAL STATEMENTS (Continued) 13. 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, 2002, the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 22 Terminated employees entitled to benefits but not yet receiving them - _ Current employees Vested 27 Nonvested 18 _ TOTAL 67 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, 2002, the Village's contribution was 13.6% of covered payroll - 33 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 13. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan Fire sworn personnel are covered by the Firefighters' Pension Plan. Although this is a 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, 2002,the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 24 Terminated employees entitled to benefits but not yet receiving them - Current employees Vested 20 Nonvested 14 TOTAL 58 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 31,2002,the Village's contribution was 19.6% of covered payroll. - 34 - VILLAGE OF OAK BROOK, ILLINOIS _ NOTES TO FINANCIAL STATEMENTS (Continued) 13. 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 $ 2,313,328 $ 2,313,328 Firefighters' Pension Fidelity Dividend Growth Mutual Fund $ 1,214,751 Firefighters' Pension Vanguard Total Stock Mutual Fund 834,250 $ 2,049,001 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, January 1, 1999 2002 2002 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 10 Years, 32 Years, 32 Years, Closed Closed Closed i - 35 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. 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% 7.25% 7.50% Present and Future Assets Compounded Compounded Compounded Annually Annually Annually b) Projected Salary Increase- 4.00% 5.00% 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 Calendar Police Firefighters' Year Retirement Year Pension Pension Annual Pension Cost 1999 $ 349,773 2000 $ 218,523 $ 299,044 (APC) 2000 343,528 2001 271,765 357,168 2001 359,653 2002 338,565 417,022 Actual Contribution 1999 $ 349,773 2000 $ 218,523 $ 299,044 2000 343,528 2001 271,765 357,168 2001 359,653 2002 338,565 417,022 _ Percentage of APC 1999 100.00% 2000 100.00% 100.00% Contributed 2000 100.00 2001 100.00 100.00 2001 100.00 2002 100.00 100.00 NPO(Asset) 1999 $ - 2000 $ - $ - 2000 - 2001 - - 2001 - 2002 - - - 36 - VILLAGE OF OAK BROOK, ILLINOIS _ NOTES TO FINANCIAL STATEMENTS (Continued) 13. 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 $ 338,565 $ 417,022 Interest on net pension obligation - - '- Adjustment to annual required contribution - - Annual pension cost 338,565 417,022 -" Contributions made 338,565 417,022 Increase (decrease) in net pension obligation (asset) - - Net pension obligation(asset)beginning of year - - NET PENSION OBLIGATION(ASSET) END OF YEAR $ - $ _ - 37 - I I 1 -1 - � I I 'll - - I- � I - ,I I I � 1. I - 11 I- I I I - � - I �I I - I- I I �- 'L � ' I ' I I I�" - I I 11 ' I I I I i I I I I 11 I I I 1.� I" I �I 1�I � ,' - � I i'- - ' I I I I� ' — . I� - I I " . I I .", I I ' ' 11 ' I '- - � I - I - I � I � I I � � �� . I I I I��­ I � � � L ;' -I I I � �- � I I I 1� I I I I I I I - I I I I 11 I-I I I ,- '-� -, I - I -1 I I� � I .� I I I , 11 I I I " "I, I� - I I � , - I I � . I I I I I - . I I I I I � I I ,I I - I -. 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I� j , :" I 1�1 - I I 1�1 I � I , I I - , - -- , , - , - I I I� - I � . -�- - -" -,, , ,� I :- I I � ll� - I : , I: I. , - I , - ' �: %"� �,�: � , � I-��I ,: �'-11-1 �'- I - - , -,-� I . -- . . ,-��I�11- ' - I ,I , I � , I , , - �- , -�,-��- '�:Il � - - �- I � I " I I I,,,,���� - I- —� I , " �- " - � t , �-�� �, � � I I"I- I I � - :� I� ,I - I I I . , � - - - � - I -1 I I � , ,�I . 11- ., � , I ,, I I � ' ' - -- ��11 �- I - - , I � -- "':-�"�� ",�'""��." � I -:�, - , - -� �: - i Y - L '� I �1, ,,�a I I -":,, �-�� I I I ,�I� ,- I � . - �"-, I I I I- - I, I- i I j i. ,z °' - - ._I L I I � " _ - , I VILLAGE OF OAK BROOK,ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS'PENSION FUND December 31,2002 — (4) UAAL (2) Unfunded (ORAL) Actuarial (Overfunded) As a Actuarial (1) Accrued (3) AAL Percentage Valuation Actuarial Liability Funded (URAL) (5) of Covered Date Value of (AAL) Ratio (OAAL) 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% 2002 16,240,617 20,878,039 77.79% 4,637,422 2,222,646 208.64% (See independent auditor's report.) -40- VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2002 Annual - Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 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% 2001 359,653 359,653 100.00% (See independent auditor's report.) - 41 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND December 31, 2002 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% 2002 338,565 338,565 100.00% r (See independent auditor's report.) - 42 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS'PENSION FUND December 31, 2002 — 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% 2000 299,044 299,044 100.00% 2001 357,168 357,168 100.00% 2002 417,022 417,022 100.00% ti s (See independent auditor's report.) - 43 - s GENERAL FUND General Fund - to account for resources traditionally associated with governments which are not required to be accounted for in another fund. s VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2002 Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental $ 10,757,065 $ 11,524,898 $ 767,833 Utility taxes 3,700,000 3,364,985 (335,015) Licenses and permits 398,550 468,403 69,853 Charges for services 394,500 560,204 165,704 Fines and penalties 267,000 311,750 44,750 Investment income 425,000 383,719 (41,281) Donations - 25,000 25,000 Miscellaneous 65,700 100,766 35,066 Total revenues 16,007,815 16,739,725 731,910 EXPENDITURES Current General government 10,922,910 10,847,376 75,534 Public safety 9,288,855 9,247,222 41,633 Public works 1,238,330 1,216,142 22,188 Culture and recreation 1,308,805 1,277,145 31,660 Total expenditures 22,758,900 22,587,885 171,015 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (6,751,085) (5,848,160) 902,925 OTHER FINANCING SOURCES (USES) Operating transfers in 297,000 297,000 - Operating transfers(out) (148,400) (148,400) - Proceeds from sale of fixed assets - 39,000 39,000 Total other financing sources(uses) 148,600 187,600 39,000 'r EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (6,602,485) (5,660,560) $ 941,925 FUND BALANCE,JANUARY 1 17,283,142 FUND BALANCE,DECEMBER 31 $ 11,622,582 (See independent auditor's report.) ` -44- VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES- BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2002 Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental Municipal sales tax $ 9,700,000 $ 9,982,742 $ 282,742 Illinois state income and use tax 787,465 653,357 (134,108) Corporate personal property replacement taxes 203,600 165,635 (37,965) York Township road and bridge tax 66,000 57,353 (8,647) Grants - 665,811 665,811 Total intergovernmental 10,757,065 11,524,898 767,833 Utility taxes 3,700,000 3,364,985 (335,015) Licenses and permits 398,550 468,403 69,853 Charges for services 394,500 560,204 165,704 e, Fines and penalties 267,000 311,750 44,750 Investment income 425,000 383,719 (41,281) Donations - 25,000 25,000 Miscellaneous Franchise/infrastructure maintenance fees 14,700 34,609 19,909 ,,. Other 51,000 66,157 15,157 Total miscellaneous 65,700 100,766 35,066 TOTAL REVENUES $ 16,007,815 $ 16,739,725 $ 731,910 (See independent auditor's report.) -45 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31,2002 Variance _ Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT Legislative and general management Board of trustees Personnel $ 78,230 $ 78,229 $ 1 Materials and supplies 1,285 1,284 1 Operation and contractual 55,980 52,920 3,060 Total board of trustees 135,495 132,433 3,062 Village clerk Personnel 130,015 129,961 54 Materials and supplies 2,880 2,877 3 Operation and contractual 25,685 17,949 7,736 Total Village clerk 158,580 150,787 7,793 Legal Personnel 127,575 128,059 (484) Materials and supplies 4,500 4,157 343 Operation and contractual 36,895 36,751 144 Total legal 168,970 168,967 3 General management Personnel 261,005 249,592 11,413 Materials and supplies 1,450 1,525 (75) ... Operation and contractual 8,355 8,315 40 Total general management 270,810 259,432 11,378 Human resources Personnel 83,955 83,954 1 Materials and supplies 2,130 2,059 71 Operation and contractual 97,475 97,459 16 Total human resources 183,560 183,472 88 Risk management Personnel 49,440 49,436 4 Operation and contractual 462,405 462,207 198 Total risk management 511,845 511,643 202 -• (This schedule is continued on the following pages.) -46- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2002 .• Variance Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) Emergency management Personnel $ 3,000 $ 31 $ 2,969 Materials and supplies 6,850 346 6,504 Operation and contractual 3,100 999 2,101 Total emergency management 12,950 1,376 11,574 General services Personnel 55,110 55,825 (715) Materials and supplies 56,680 51,587 5,093 Operation and contractual 187,840 187,837 3 Capital 44,200 43,817 383 Total general services 343,830 339,066 4,764 Purchasing Personnel 114,105 114,097 8 Materials and supplies 1,975 1,969 6 Operation and contractual 1,330 1,325 5 Total purchasing 117,410 117,391 19 Information systems Personnel 278,000 267,192 10,808 .. Materials and supplies 9,750 8,877 873 Operation and contractual 130,685 130,661 24 Capital 217,500 217,496 4 Total information systems 635,935 624,226 11,709 Village communications center Personnel 596,830 596,802 28 Materials and supplies 15,525 10,421 5,104 Operation and contractual 14,630 11,756 2,874 Capital 291,255 291,252 3 Total Village communications center 918,240 910,231 8,009 (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 31,2002 Variance - Favorable Budget Actual (Unfavorable) GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) .� Community events Operation and contractual $ 139,500 $ 139,473 $ 27 Total community events 139,500 139,473 27 Total legislative and general management 3,597,125 3,538,497 58,628 Financial services Financial services management Personnel 125,675 125,673 2 _ Materials and supplies 1,720 1,142 578 Operation and contractual 23,650 23,594 56 Total financial services management 151,045 150,409 636 -� Accounting and reporting Personnel 296,900 290,795 6,105 Materials and supplies 11,060 6,882 4,178 Operation and contractual 32,035 32,029 6 Capital - - - Total accounting and reporting 339,995 329,706 10,289 Debt service _ Operation and contractual 373,485 373,481 4 Total debt service 373,485 373,481 4 Total financial services 864,525 853,596 10,929 Engineering and capital projects Engineering Personnel 320,675 320,592 83 - Materials and supplies 1,925 1,621 304 Operation and contractual 23,135 17,641 5,494 Total engineering 345,735 339,854 5,881 Municipal building improvements Operation and contractual 2,715 2,713 2 Capital 30,615 30,614 1 Total municipal building improvements 33,330 33,327 3 (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 31,2002 Variance Favorable Budget Actual (Unfavorable) .�. GENERAL GOVERNMENT(Continued) Engineering and capital projects(Continued) Library building project Operation and contractual $ 21,120 $ 21,117 $ 3 Capital 790,375 790,376 (1) ._ Total library building project 811,495 811,493 2 Municipal complex project Operation and contractual 84,900 84,858 42 Capital 5,185,800 5,185,751 49 Total municipal complex project 5,270,700 5,270,609 91 Total engineering and capital projects 6,461,260 6,455,283 5,977 Total general government 10,922,910 10,847,376 75,534 PUBLIC SAFETY Police Department Police services management Personnel 459,305 459,299 6 Materials and supplies 3,715 3,711 4 Operation and contractual 34,200 34,195 5 Capital 320 320 - �. Total police services management 497,540 497,525 15 Police field services Personnel 2,854,900 2,854,900 - �-- Materials and supplies 50,490 50,486 4 Operation and contractual 174,015 174,009 6 Capital 39,435 39,426 9 Total police field services 3,118,840 3,118,821 19 b.- Police general support Personnel 276,435 276,432 3 Materials and supplies 16,315 16,292 23 Operation and contractual 1,205 1,200 5 Total police general support 293,955 293,924 31 (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 31,2002 Variance Favorable Budget Actual (Unfavorable) PUBLIC SAFETY(Continued) Police Department(Continued) Police investigations Personnel $ 444,800 $ 437,265 $ 7,535 Materials and supplies 7,800 7,876 (76) Operation and contractual 14,640 14,260 380 Total police investigations 467,240 459,401 7,839 Police records Personnel 131,705 126,001 5,704 Materials and supplies 5,950 4,663 1,287 Operation and contractual 5,600 5,596 4 Total police records 143,255 136,260 6,995 Public relations/crime prevention Personnel 125,920 120,671 5,249 Materials and supplies 6,400 2,547 3,853 Operation and contractual 6,880 6,876 4 Total public relations/crime prevention 139,200 130,094 9,106 Total police department 4,660,030 4,636,025 24,005 Fire and community development Fire and EMS general salaries Personnel 2,979,605 2,979,582 23 Total fire and EMS general salaries 2,979,605 2,979,582 23 Fire service management -- Personnel 319,070 316,253 2,817 Materials and supplies 4,130 4,121 9 Operation and contractual 4,650 4,615 35 .� Total fire service management 327,850 324,989 2,861 (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 31,2002 Variance Favorable Budget Actual (Unfavorable) PUBLIC SAFETY(Continued) Fire and community development(Continued) Rescue and fire operation Personnel $ 4,195 $ 4,192 $ 3 Materials and supplies 32,170 32,164 6 Operation and contractual 108,425 102,634 5,791 Capital 37,015 35,702 1,313 Total rescue and fire operation 181,805 174,692 7,113 Special teams operations Personnel 130 - 130 Materials and supplies 1,600 893 707 Operation and contractual 6,710 5,932 778 Capital 17,000 16,871 129 Total special teams operations 25,440 23,696 1,744 Rescue and fire training _ Personnel 26,425 26,348 77 Materials and supplies 3,085 2,108 977 Operation and contractual 150 - 150 Total rescue and fire training 29,660 28,456 1,204 Emergency medical services :. Personnel 37,830 36,667 1,163 Materials and supplies 12,445 11,990 455 Operation and contractual 380,945 379,466 1,479 Capital 1,800 1,769 31 Total emergency medical services 433,020 429,892 3,128 Prevention and public education Personnel 135,750 135,528 222 Materials and supplies 3,755 2,369 1,386 Operation and contractual 32,740 32,819 (79) Total prevention and public education 172,245 170,716 1,529 (This schedule is continued on the following pages.) -51 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2002 Variance Favorable Budget Actual (Unfavorable) PUBLIC SAFETY(Continued) Fire and community development(Continued) ^- Community development management Personnel $ 195,645 $ 195,643 $ 2 Materials and supplies 765 756 9 Operation and contractual 1,960 1,959 1 Total community development management 198,370 198,358 12 Code enforcement Personnel 243,775 243,761 14 Materials and supplies 1,160 1,160 - Operation and contractual 35,895 35,895 - Total code enforcement 280,830 280,816 14 Total fire and community development 4,628,825 4,611,197 17,628 Total public safety 9,288,855 9,247,222 41,633 ... PUBLIC WORKS Public works management Personnel 279,955 279,955 - Materials and supplies 1,680 1,672 8 Operation and contractual 9,955 9,953 2 Total public works management 291,590 291,580 10 Mosquito control Operation and contractual 58,270 58,266 4 Total mosquito control 58,270 58,266 4- Buildings and grounds Personnel 72,990 67,002 5,988 Materials and supplies 30,335 24,027 6,308 Operation and contractual 146,035 146,033 2 Capital 2,500 1,658 842 Total buildings and grounds 251,860 238,720 13,140 (This schedule is continued on the following pages.) -52- ,... VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND For the Year Ended December 31,2002 Variance Favorable Budget Actual (Unfavorable) PUBLIC WORKS(Continued) Streets-general salaries Personnel $ 532,285 $ 532,285 $ - "' Materials and supplies 3,745 3,274 471 Operation and contractual 2,935 2,345 590 Total streets-general salaries 538,965 537,904 1,061 Snow removal Personnel 36,880 33,824 3,056 Materials and supplies 35,515 34,798 717 Operation and contractual 25,250 21,050 4,200 Total snow removal 97,645 89,672 7,973 Total public works 1,238,330 1,216,142 22,188 CULTURE AND RECREATION Library general operations Personnel 349,650 348,704 946 Materials and supplies 42,390 38,227 4,163 Operation and contractual 111,580 111,189 391 Capital 185,955 185,954 1 Total library general operations 689,575 684,074 5,501 .,, Library technical services Personnel 121,345 118,820 2,525 Materials and supplies 9,475 9,403 72 Operation and contractual 8,550 5,604 2,946 Total library technical services 139,370 133,827 5,543 Library reference and adult services Personnel 140,815 131,885 8,930 Materials and supplies 124,100 123,485 615 ..� Operation and contractual 9,500 7,106 2,394 Total library reference and adult services 274,415 262,476 11,939 (This schedule is continued on the following page.) -53 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF EXPENDITURES- BUDGET AND ACTUAL(Continued) GENERAL FUND r For the Year Ended December 31,2002 Variance Favorable Budget Actual (Unfavorable) CULTURE AND RECREATION(Continued) Library youth services "- Personnel $ 148,885 $ 141,376 $ 7,509 Materials and supplies 49,930 48,770 1,160 Operation and contractual 6,630 6,622 8 Total library youth services 205,445 196,768 8,677 Total culture and recreation 1,308,805 1,277,145 31,660 `— TOTAL EXPENDITURES $ 22,758,900 $ 22,587,885 $ 171,015 (See independent auditor's report.) -54- 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. w.' is r tom. VILLAGE OF OAK BROOK, ILLINOIS COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS December 31,2002 Foreign Fire Hotel/Motel Motor Insurance Tax Fuel Tax Tax Total ASSETS Cash and investments $ 505,331 $ 645,264 $ 103,881 $ 1,254,476 Receivables Allotments - 23,527 - 23,527 Accrued interest 613 932 68 1,613 Other,hotel/motel tax 34,885 - - 34,885 TOTAL ASSETS $ 540,829 $ 669,723 $ 103,949 $ 1,314,501 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 150,626 $ - $ 565 $ 151,191 Total liabilities 150,626 - 565 151,191 _ FUND BALANCES Unreserved 390,203 669,723 103,384 1,163,310 Total fund balances 390,203 669,723 103,384 1,163,310 TOTAL LIABILITIES AND FUND BALANCES $ 540,829 $ 669,723 $ 103,949 $ 1,314,501 ..o (See independent auditor's report.) - 55 - (This page is intentionally left blank.) s.. 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 31,2002 Hotel/Motel Tax Variance Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental Hotel/motel taxes 347,000 297,911 (49,089) Investment income 15,000 15,987 987 Total revenues 362,000 313,898 (48,102) EXPENDITURES Current Public safety - - - Culture and recreation 429,140 325,874 103,266 Total expenditures 429,140 325,874 103,266 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (67,140) (11,976) 55,164 OTHER FINANCING SOURCES(USES) Operating transfers(out) (10,000) (10,000) - Total other financing sources(uses) (10,000) (10,000) - EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ (77,140) (21,976) $ 55,164 FUND BALANCES,JANUARY 1 412,179 i FUND BALANCES,DECEMBER 31 $ 390,203 i i �l -56- Motor Fuel Tax Foreign Fire Insurance Tax Total Variance Variance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ 245,400 $ 250,183 $ 4,783 $ 32,400 $ 31,106 $ (1,294) $ 277,800 $ 281,289 $ 3,489 .. _ - _ _ - - 347,000 297,911 (49,089) 12,000 23,826 11,826 2,000 2,440 440 29,000 42,253 13,253 257,400 274,009 16,609 34,400 33,546 (854) 653,800 621,453 (32,347) �- - - - 31,500 22,174 9,326 31,500 22,174 9,326 - - - 429,140 325,874 103,266 - - - 31,500 22,174 9,326 460,640 348,048 112,592 257,400 274,009 16,609 2,900 11,372 8,472 193,160 273,405 80,245 (525,000) (238,307) 286,693 - - - (535,000) (248,307) 286,693 (525,000) (238,307) 286,693 - - - (535,000) (248,307) 286,693 $ (267,600) 35,702 $ 303,302 $ 2,900 11,372 $ 8,472 $ (341,840) 25,098 $ 366,938 634,021 92,012 1,138,212 $ 669,723 $ 103,384 $ 1,163,310 (See independent auditor's report.) -57- CAPITAL PROJECTS FUND Infrastructure Fund-to account for revenues and expenditures relative to the construction and maintenance of roadway, drainage and bike trail improvements. VILLAGE OF OAK BROOK, ILLINOIS BALANCESHEET CAPITAL PROJECTS FUND - INFRASTRUCTURE FUND December 31, 2002 ASSETS Cash and investments $ 1,849,553 Receivables Utility taxes 164,531 Accrued interest 1,645 Other 143,419 TOTAL ASSETS $ 2,159,148 _ LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 117,233 Deposits payable 14,640 Total liabilities 131,873 FUND BALANCE Unreserved 2,027,275 Total fund balance 2,027,275 TOTAL LIABILITIES AND FUND BALANCE $ 2,159,148 (See independent auditor's report.) - 58 - �.- 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, 2002 Variance _ Favorable Budget Actual (Unfavorable) REVENUES Intergovernmental-grants $ 305,700 $ 208,923 $ (96,777) Utility taxes 1,251,000 1,057,073 (193,927) Investment income 64,000 60,177 (3,823) Total revenues 1,620,700 1,326,173 (294,527) EXPENDITURES Current Public works 590,745 556,289 34,456 Capital outlay 1,274,000 917,478 356,522 Total expenditures 1,864,745 1,473,767 390,978 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (244,045) (147,594) 96,451 OTHER FINANCING SOURCES (USES) Operating transfers in 525,000 238,307 (286,693) — Total other financing sources(uses) 525,000 238,307 (286,693) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES 1 OVER EXPENDITURES AND OTHER FINANCING USES $ 280,955 90,713 $ (190,242) FUND BALANCE, JANUARY 1 1,936,562 FUND BALANCE, DECEMBER 31 $ 2,027,275 — (See independent auditor's report.) - 59 - 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, 2002 Waterworks Sports —. System Core Total ASSETS CURRENT ASSETS Cash and investments $ 4,480,044 $ 17,933 $ 4,497,977 '— Receivables Billed water sales 62,966 - 62,966 Unbilled water sales 292,814 - 292,814 Accrued interest 4,158 353 4,511 Other 2,213 64,582 66,795 Inventories - 171,308 171,308 Total current assets 4,842,195 254,176 5,096,371 RESTRICTED ASSETS Cash and investments - 123,511 123,511 _ FIXED ASSETS Property, plant and equipment 17,725,814 18,282,623 36,008,437 Accumulated depreciation (8,149,676) (4,078,287) (12,227,963) Total fixed assets 9,576,138 14,204,336 23,780,474 OTHER ASSETS Water purchase rights 1,469,013 - 1,469,013 — TOTAL ASSETS $ 15,887,346 $ 14,582,023 $ 30,469,369 - 60 - Waterworks Sports System Core Total LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable $ 236,291 $ 53,115 $ 289,406 _ Accrued payroll 22,844 38,562 61,406 Accrued interest payable - 10,674 10,674 Compensated absences payable 21,539 39,207 60,746 Deposits payable 10,614 31,281 41,895 Deferred revenue - 29,651 29,651 Due to other funds - 1,613,827 1,613,827 Installment contracts payable - 235,000 235,000 Capital lease payable - 38,136 38,136 Total current liabilities 291,288 2,089,453 2,380,741 LONG-TERM LIABILITIES Advances from other funds - 1,140,000 1,140,000 Installment contract payable - 1,250,000 1,250,000 Total long-term liabilities - 2,390,000 2,390,000 Total liabilities 291,288 4,479,453 4,770,741 FUND EQUITY _ Contributed capital 207,446 11,025,590 11,233,036 Retained earnings 'tj.," " Reserved for golf surcharge - 123,511 �y 123,511 Unreserved(deficit) 15,388,612 (1,046,531 14,342,081 Total fund equity 15,596,058 10,102,570 25,698,628 TOTAL LIABILITIES AND FUND EQUITY $ 15,887,346 $ 14,582,023 $ 30,469,369 (See independent auditor's report.) - 61 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS ENTERPRISE FUNDS _ For the Year Ended December 31, 2002 Waterworks Sports System Core Total OPERATING REVENUES Charges for services $ 3,635,611 $ 3,381,826 $ 7,017,437 Miscellaneous 48,347 - 48,347 Total operating revenues 3,683,958 3,381,826 7,065,784 OPERATING EXPENSES Operation of facilities 3,685,728 3,348,920 7,034,648 Depreciation and amortization 521,717 399,541 921,258 Total operating expenses 4,207,445 3,748,461 7,955,906 OPERATING INCOME(LOSS) (523,487) (366,635) (890,122) NONOPERATING REVENUES(EXPENSES) Investment income 133,905 12,119 146,024 Interest expense - (81,067) (81,067) Total nonoperating revenues(expenses) 133,905 (68,948) 64,957 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS (389,582) (435,583) (825,165) �. OPERATING TRANSFERS Operating transfers in - 148,400 148,400 Operating transfers (out) (266,000) - (266,000) Total operating transfers (266,000) 148,400 (117,600) NET INCOME(LOSS) (655,582) (287,183) (942,765) RETAINED EARNINGS (DEFICIT),JANUARY 1 16,044,194 (635,837) 15,408,357 RETAINED EARNINGS (DEFICIT),DECEMBER 31 $ 15,388,612 $ (923,020) $ 14,465,592 ... i (See independent auditor's report.) - 62 - (This page is intentionally left blank.) ! VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS i For the Year Ended December 31, 2002 Waterworks Sports System Core Total CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (523,487) $ (366,635) $ (890,122) Depreciation and amortization 521,717 399,541 921,258 Adjustments to reconcile operating income (loss) to net cash from operating activities Changes in assets and liabilities Accounts receivable (34,679) - (34,679) Other receivable - (30,118) (30,118) Inventories - 14,229 14,229 Accounts payable (43,894) (134,893) (178,787) '- Accrued payroll and compensated absences 8,629 7,842 16,471 Deposits payable 10,614 (14,219) (3,605) - Deferred revenue - 4,267 4,267 Net cash from operating activities (61,100) (119,986) (181,086) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Borrowings from other funds - 180,452 180,452 Operating transfers in - 148,400 148,400 Operating transfers (out) (266,000) - (266,000) Net cash from non-capital financing activities (266,000) 328,852 62,852 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets (4,467) (87,914) (92,381) Principal paid on installment contract payable - (225,000) (225,000) Principal paid on capital lease payable - (33,241) (33,241) Interest paid - (84,611) (84,611) - Net cash from capital and related financing activities (4,467) (430,766) (435,233) (This statement is continued on the following page.) - 63 - VILLAGE OF OAK BROOK, ILLINOIS — COMBINING STATEMENT OF CASH FLOWS (Continued) ENTERPRISE FUNDS For the Year Ended December 31, 2002 Waterworks Sports System Core Total CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments $ (92,879) $ - $ (92,879) Sale of investments - 62,031 62,031 Interest received 141,555 13,398 154,953 Net cash from investing activities 48,676 75,429 124,105 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (282,891) (146,471) (429,362) CASH AND CASH EQUIVALENTS, JANUARY 1 3,309,344 164,404 3,473,748 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 3,026,453 $ 17,933 $ 3,044,386 CASH AND INVESTMENTS Cash and cash equivalents $ 3,026,453 $ 17,933 $ 3,044,386 Investments (including $123,511 of restricted assets) 1,453,591 123,511 1,577,102 TOTAL CASH AND INVESTMENTS $ 4,480,044 $ 141,444 $ 4,621,488 (See independent auditor's report.) - 64 - 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, 2002 Variance —" Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services Water sales $ 3,705,000 $ 3,530,105 $ (174,895) Unmetered sales 10,000 33,372 23,372 Water tap on charges 50,000 45,840 (4,160) Meter fees and special services 43,000 26,294 (16,706) Miscellaneous 50,000 48,347 (1,653) Total operating revenues 3,858,000 3,683,958 (174,042) OPERATING EXPENSES Operation of facilities 4,478,905 3,685,728 793,177 Depreciation and amortization - 521,717 (521,717) Total operating expenses 4,478,905 4,207,445 271,460 OPERATING INCOME(LOSS) (620,905) (523,487) 97,418 NONOPERATING REVENUES (EXPENSES) Investment income 126,000 133,905 7,905 Total nonoperating revenues (expenses) 126,000 133,905 7,905 NET INCOME(LOSS) BEFORE OPERATING TRANSFERS (494,905) (389,582) 105,323 OPERATING TRANSFERS (OUT) (266,000) (266,000) - NET INCOME (LOSS) $ (760,905) (655,582) $ 105,323 _ RETAINED EARNINGS, JANUARY 1 16,044,194 RETAINED EARNINGS, DECEMBER 31 $ 15,388,612 (See independent auditor's report.) - 65 - VILLAGE OF OAK BROOK, ILLINOIS _ SCHEDULE OF OPERATING EXPENSES -BUDGET AND ACTUAL WATERWORKS SYSTEM FUND For the Year Ended December 31, 2002 Variance Favorable Budget Actual (Unfavorable) OPERATING EXPENSES EXCLUDING DEPRECIATION Operation of facilities Public works - water operations Personnel $ 457,610 $ 445,747 $ 11,863 Materials and supplies 131,515 131,513 2 Operation and contractual 3,105,925 3,065,526 40,399 Total public works -water operations 3,695,050 3,642,786 52,264 Capital improvements Capital outlay 783,855 47,409 736,446 Total capital improvements 783,855 47,409 736,446 TOTAL OPERATING EXPENSES EXCLUDING DEPRECIATION-BUDGETARY BASIS $ 4,478,905 3,690,195 $ 788,710 ADJUSTMENTS TO GAAP BASIS Capital expenditures (4,467) Depreciation expense 452,857 Amortization expense 68,860 Total adjustments to GAAP basis 517,250 TOTAL OPERATING EXPENSES $ 4,207,445 (See independent auditor's report.) - 66 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FIXED ASSETS AND ACCUMULATED DEPRECIATION WATERWORKS SYSTEM FUND .� For the Year Ended December 31,2002 Fixed Assets 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 602,598 - - 602,598 Water treatment equipment 8,149 - - 8,149 Distributions,reservoirs,mains and standpipes 14,202,213 211,913 133,860 14,280,266 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 Miscellaneous equipment 168,904 - - 168,904 Intangible plant-organization 11,403 - - 11,403 TOTALS $ 17,647,761 $ 211,913 $ 133,860 $ 17,725,814 - -67- s Accumulated Depreciation Net Fixed Balances Additions Balances Asset January 1 and Transfers Retirements December 31 Value $ - $ - $ - $ - $ 215,800 220,237 7,869 - 228,106 86,647 200,858 18,437 - 219,295 518,206 204,878 15,065 - 219,943 382,655 8,149 - - 8,149 - 6,217,164 354,358 133,860 6,437,662 7,842,604 691,197 41,317 - 732,514 430,432 114,634 4,537 - 119,171 62,301 20,763 - - 20,763 - 20,189 - - 20,189 - 1,070 - - 1,070 - 120,137 11,274 - 131,411 37,493 11,403 - - 11,403 - $ 7,830,679 $ 452,857 $ 133,860 $ 8,149,676 $ 9,576,138 (See independent auditor's report.) -68- VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS-BUDGET AND ACTUAL SPORTS CORE FUND i For the Year Ended December 31,2002 Variance Favorable '— Budget Actual (Unfavorable) OPERATING REVENUES Charges for services Golf $ 2,121,350 $ 1,893,651 $ (227,699) Bath and tennis 350,440 270,192 (80,248) Food and beverage 1,270,815 1,217,983 (52,832) Total operating revenues 3,742,605 3,381,826 (360,779) OPERATING EXPENSES Golf club 1,425,100 1,325,284 99,816 Bath and tennis 822,740 822,350 390 Food and beverage 1,225,205 1,201,286 23,919 Depreciation - 399,541 (399,541) Total operating expenses 3,473,045 3,748,461 (275,416) OPERATING INCOME(LOSS) 269,560 (366,635) (636,195) NONOPERATING REVENUES (EXPENSES) Investment income 17,000 12,119 (4,881) Interest expense (309,610) (81,067) 228,543 Gain on sale of fixed assets 1,525,000 - (1,525,000) Total nonoperating revenues(expenses) 1,232,390 (68,948) (1,301,338) NET INCOME(LOSS)BEFORE OPERATING TRANSFERS 1,501,950 (435,583) (1,937,533) OPERATING TRANSFERS IN(OUT) Operating transfers in 148,400 148,400 - Total operating transfers in(out) 148,400 148,400 - NET INCOME(LOSS) $ 1,650,350 (287,183) $ (1,937,533) RETAINED EARNINGS (DEFICIT),JANUARY 1 (635,837) RETAINED EARNINGS (DEFICIT),DECEMBER 31 $ (923,020) .. (See independent auditor's report.) -69- VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF OPERATING REVENUES -BUDGET AND ACTUAL �- SPORTS CORE FUND For the Year Ended December 31, 2002 Variance Favorable Budget Actual (Unfavorable) CHARGES FOR SERVICES .� Golf Fees $ 1,495,100 $ 1,356,572 $ (138,528) Golf surcharge 70,500 66,086 (4,414) Memberships 335,250 306,333 (28,917) Merchandise sales 220,500 163,660 (56,840) Miscellaneous - 1,000 1,000 Total golf 2,121,350 1,893,651 (227,699) Bath and tennis Fees 111,575 81,917 (29,658) _ Memberships 227,465 173,260 (54,205) Merchandise sales 3,400 2,948 (452) Miscellaneous 8,000 12,067 4,067 Total bath and tennis 350,440 270,192 (80,248) Food and beverage Food sales 803,155 743,193 (59,962) Beverage sales 381,810 372,624 (9,186) Miscellaneous 85,850 102,166 16,316 Total food and beverage 1,270,815 1,217,983 (52,832) TOTAL OPERATING REVENUES $ 3,742,605 $ 3,381,826 $ (360,779) s (See independent auditor's report.) - 70 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL SPORTS CORE FUND For the Year Ended December 31,2002 Variance Favorable Budget Actual (Unfavorable) OPERATING EXPENSES EXCLUDING DEPRECIATION a Operations-golf club Golf club general operations Personnel $ 383,995 $ 359,377 $ 24,618 Materials and supplies 203,945 172,647 31,298 Operation and contractual 156,150 156,150 - Total golf club general operations 744,090 688,174 55,916 Golf club range operations Personnel 45,595 46,248 (653) _ Materials and supplies 6,050 6,049 1 Operation and contractual 7,300 6,645 655 Total golf club range operations 58,945 58,942 3 Golf cart operations Personnel 24,290 24,286 4 _ Materials and supplies 1,200 798 402 Operation and contractual 41,115 4,902 36,213 Total golf cart operations 66,605 29,986 36,619 Golf course maintenance Personnel 393,330 386,053 7,277 Materials and supplies 128,155 128,154 1 Operation and contractual 33,975 33,975 - _ Total golf course maintenance 555,460 548,182 7,278 Total operations-golf club 1,425,100 1,325,284 99,816 Operations-bath and tennis Sports Core general operations Personnel 386,590 386,589 1 Materials and supplies 33,225 33,221 4 Operation and contractual 124,935 108,969 15,966 Total Sports Core general operations 544,750 528,779 15,971 (This schedule is continued on the following page.) -71 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) SPORTS CORE FUND For the Year Ended December 31,2002 Variance �- Favorable Budget Actual (Unfavorable) .� OPERATING EXPENSES EXCLUDING DEPRECIATION(Continued) Operations-bath and tennis(Continued) Swimming operations Personnel $ 114,135 $ 114,135 $ - Materials and supplies 22,330 22,326 4 Operation and contractual 34,720 34,717 3 Total swimming operations 171,185 171,178 7 '- Tennis operations-outdoor Personnel 82,625 82,619 6 Materials and supplies 8,900 8,294 606 Operation and contractual 15,280 15,278 2 Total tennis operations-outdoor 106,805 106,191 614 Total operations-bath and tennis 822,740 806,148 16,592 Food and beverage Personnel 589,635 565,803 23,832 Materials and supplies 457,755 457,670 85 Operation and contractual 177,815 177,813 2 Total food and beverage 1,225,205 1,201,286 23,919 Capital outlay 159,200 104,116 55,084 TOTAL OPERATING EXPENSES-BUDGETARY BASIS $ 3,632,245 3,436,834 $ 195,411 ADJUSTMENTS TO GAAP BASIS Capital expenditures (87,914) Depreciation expense 399,541 Total adjustments to GAAP basis 311,627 TOTAL OPERATING EXPENSES $ 3,748,461 (See independent auditor's report.) -72- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FIXED ASSETS AND ACCUMULATED DEPRECIATION SPORTS CORE FUND For the Year Ended December 31,2002 Fixed Assets Balances Additions Balances January 1 and Transfers Retirements December 31 Land $ 8,168,944 $ - $ - $ 8,168,944 Land improvements-golf 2,658,327 4,332 - 2,662,659 Land improvements-bath and tennis 151,611 - - 151,611 Buildings-golf 1,998,117 - - 1,998,117 Buildings-bath and tennis 3,763,758 25,634 - 3,789,392 Machinery and equipment-golf 998,590 34,757 13,251 1,020,096 Machinery and equipment-bath and tennis 319,885 11,402 - 331,287 Computer equipment 21,367 - - 21,367 Construction in progress-Westchester Park 110,299 11,789 - 122,088 Vehicles 17,062 - - 17,062 TOTALS $ 18,207,960 $ 87,914 $ 13,251 $ 18,282,623 -73 - 4.. Accumulated Depreciation Net Fixed Balances Additions Balances Asset January 1 and Transfers Retirements December 31 Value $ - $ - $ - $ - $ 8,168,944 1,271,052 107,289 - 1,378,341 1,284,318 151,611 - - 151,611 - 396,470 49,362 - 445,832 1,552,285 1,203,145 107,483 - 1,310,628 2,478,764 513,006 106,776 13,251 606,531 413,565 129,036 27,198 - 156,234 175,053 21,367 - - 21,367 - - - - - 122,088 6,310 1,433 - 7,743 9,319 $ 3,691,997 $ 399,541 $ 13,251 $ 4,078,287 $ 14,204,336 (See independent auditor's report.) -74- 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. i VILLAGE OF OAK BROOK, ILLINOIS COMBINING BALANCE SHEET INTERNAL SERVICE FUNDS December 31,2002 i Self Capital Insurance Garage Replacement Total ASSETS CURRENT ASSETS Cash and investments $ 368,310 $ 257,405 $ 3,286,368 $ 3,912,083 Receivables Utility taxes - - 23,394 23,394 i Accrued interest - 343 2,911 3,254 Other - 31 - 31 Inventories - 38,211 - 38,211 Total current assets 368,310 295,990 3,312,673 3,976,973 FIXED ASSETS Equipment - 136,477 4,097,931 4,234,408 Less accumulated depreciation - (122,400) (2,487,673) (2,610,073) Net fixed assets - 14,077 1,610,258 1,624,335 TOTAL ASSETS $ 368,310 $ 310,067 $ 4,922,931 $ 5,601,308 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable $ - $ 39,242 $ - $ 39,242 Accrued payroll - 10,125 - 10,125 Compensated absences payable - 10,088 - 10,088 Claims payable 223,031 - - 223,031 Total current liabilities 223,031 59,455 - 282,486 FUND EQUITY -- Retained earnings Unreserved 145,279 250,612 4,922,931 5,318,822 Total fund equity 145,279 250,612 4,922,931 5,318,822 TOTAL LIABILITIES AND FUND EQUITY $ 368,310 $ 310,067 $ 4,922,931 $ 5,601,308 (See independent auditor's report.) - 75 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS INTERNAL SERVICE FUNDS '- For the Year Ended December 31,2002 Self Capital Insurance Garage Replacement Total OPERATING REVENUES Charges for services $ 1,683,649 $ 444,100 $ 36,770 $ 2,164,519 Total operating revenues 1,683,649 444,100 36,770 2,164,519 OPERATING EXPENSES Claims and insurance 1,515,075 - - 1,515,075 Garage operations - 448,977 - 448,977 Miscellaneous - - 1,400 1,400 Depreciation - 4,092 331,409 335,501 Total operating expenses 1,515,075 453,069 332,809 2,300,953 OPERATING INCOME(LOSS) 168,574 (8,969) (296,039) (136,434) NONOPERATING REVENUES(EXPENSES) Investment income 4,357 8,930 92,357 105,644 Gain on sale of fixed assets - - 5,280 5,280 Utility taxes - - 322,108 322,108 Total nonoperating revenues(expenses) 4,357 8,930 419,745 433,032 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS 172,931 (39) 123,706 296,598 OPERATING TRANSFERS(OUT) - (21,000) - (21,000) NET INCOME(LOSS) 172,931 (21,039) 123,706 275,598 RETAINED EARNINGS(DEFICIT),JANUARY 1 (27,652) 271,651 4,799,225 5,043,224 RETAINED EARNINGS,DECEMBER 31 $ 145,279 $ 250,612 $ 4,922,931 $ 5,318,822 (See independent auditor's report.) -76- VILLAGE OF OAK BROOK,ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31,2002 Self Capital Insurance Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES -� Operating income(loss) $ 168,574 $ (8,969) $ (296,039) $ (136,434) Depreciation - 4,092 331,409 335,501 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable - 21 3,342 3,363 Inventories - (3,036) - (3,036) Accounts payable - 22,753 - 22,753 Accrued payroll and compensated absences - 7,643 - 7,643 Claims payable 30,331 - - 30,331 Net cash from operating activities 198,905 22,504 38,712 260,121 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES i Utility taxes - - 322,108 322,108 Operating transfers(out) - (21,000) - (21,000) i Net cash from non-capital financing activities - (21,000) 322,108 301,108 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of fixed assets - - (261,245) (261,245) Proceeds from sale of fixed assets - - 24,564 24,564 Net cash from capital and related financing activities - - (236,681) (236,681) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments - (55,989) (268,745) (324,734) Interest received 4,357 9,140 95,950 109,447 Net cash from investing activities 4,357 (46,849) (172,795) (215,287) NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 203,262 (45,345) (48,656) 109,261 CASH AND CASH EQUIVALENTS, JANUARY 1 165,048 183,609 2,323,227 2,671,884 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 368,310 $ 138,264 $ 2,274,571 $ 2,781,145 CASH AND INVESTMENTS Cash and cash equivalents $ 368,310 $ 138,264 $ 2,274,571 $ 2,781,145 Investments - 119,141 1,011,797 1,130,938 i TOTAL CASH AND INVESTMENTS $ 368,310 $ 257,405 $ 3,286,368 $ 3,912,083 i (See independent auditor's report.) -77- 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 31,2002 ... Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services $ 1,643,000 $ 1,683,649 $ 40,649 Total operating revenues 1,643,000 1,683,649 40,649 OPERATING EXPENSES Claims and insurance Insurance and administration 228,050 223,286 4,764 �. Health claims 1,182,500 1,176,060 6,440 Dental claims 123,200 115,729 7,471 Total operating expenses 1,533,750 1,515,075 18,675 OPERATING INCOME 109,250 168,574 59,324 NONOPERATING REVENUES (EXPENSES) Investment income 3,000 4,357 1,357 -- Total nonoperating revenues(expenses) 3,000 4,357 1,357 NET INCOME $ 112,250 172,931 $ 60,681 RETAINED EARNINGS(DEFICIT),JANUARY 1 (27,652) RETAINED EARNINGS,DECEMBER 31 $ 145,279 (See independent auditor's report.) -78- VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS-BUDGET AND ACTUAL GARAGE FUND For the Year Ended December 31,2002 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 156,270 156,269 1 Materials and supplies 115,280 115,278 2 Operations and contractual 177,430 177,430 - Capital outlay 5,660 - 5,660 Total operating expenses excluding depreciation 454,640 448,977 5,663 OPERATING INCOME(LOSS) (10,540) (4,877) 5,663 NONOPERATING REVENUES(EXPENSES) Investment income 10,000 8,930 (1,070) Total nonoperating revenues(expenses) 10,000 8,930 (1,070) NET INCOME BEFORE OPERATING TRANSFERS (540) 4,053 4,593 OPERATING TRANSFERS (OUT) (21,000) (21,000) - NET INCOME(LOSS)-BUDGETARY BASIS $ (21,540) (16,947) $ 4,593 ADJUSTMENTS TO GAAP BASIS — Depreciation expense (4,092) Total adjustments to GAAP basis (4,092) NET INCOME(LOSS)-GAAP BASIS (21,039) RETAINED EARNINGS,JANUARY 1 271,651 RETAINED EARNINGS,DECEMBER 31 $ 250,612 (See independent auditor's report.) -79- 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 31,2002 Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Charges for services $ 36,770 $ 36,770 $ - Total operating revenues 36,770 36,770 - OPERATING EXPENSES EXCLUDING DEPRECIATION Capital outlay 937,600 262,645 674,955 Total operating expenses excluding depreciation 937,600 262,645 674,955 OPERATING INCOME(LOSS) (900,830) (225,875) 674,955 NONOPERATING REVENUES (EXPENSES) Investment income 100,000 92,357 (7,643) Gain on sale of fixed assets 15,000 5,280 (9,720) Utility taxes 382,000 322,108 (59,892) Total nonoperating revenues(expenses) 497,000 419,745 (77,255) NET INCOME(LOSS)-BUDGETARY BASIS $ (403,830) 193,870 $ 597,700 —" ADJUSTMENTS TO GAAP BASIS Capital expenditures 261,245 Depreciation expense (331,409) Total adjustments to GAAP basis (70,164) NET INCOME-GAAP BASIS 123,706 RETAINED EARNINGS,JANUARY 1 4,799,225 RETAINED EARNINGS,DECEMBER 31 $ 4,922,931 (See independent auditor's report.) - 80- 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 STATEMENT OF PLAN NET ASSETS TRUST AND AGENCY FUNDS December 31, 2002 Pension Trust Funds Police Firefighter's Pension Pension Total ASSETS Cash $ 466,501 $ 100,010 $ 566,511 Investments Illinois Funds 23,533 174,325 197,858 Certificates of Deposit - 884,000 884,000 U.S. Treasury Securities 4,927,661 3,089,992 8,017,653 U.S. Agency Securities 8,827,663 5,348,869 14,176,532 _ State and Local Obligations 1,132,085 - 1,132,085 Mutual Funds 5,003,832 6,048,200 11,052,032 Insurance Contracts - 509,971 509,971 Accrued interest receivable 145,592 94,750 240,342 Total assets 20,526,867 16,250,117 36,776,984 LIABILITIES Accounts payable 5,782 9,500 15,282 _ Total liabilities 5,782 9,500 15,282 NET ASSETS HELD IN TRUST FOR PENSION PLAN BENEFITS $ 20,521,085 $ 16,240,617 $ 36,761,702 — (See independent auditor's report.) - 81 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS PENSION TRUST FUNDS For the Year Ended December 31, 2002 Police Firefighter's Pension Pension Total ADDITIONS Contributions Employer contributions $ 338,565 $ 417,022 $ 755,587 Employee contributions 246,704 179,904 426,608 Total contributions 585,269 596,926 1,182,195 Investment income Net appreciation(depreciation) in fair value of investments (393,119) (1,229,612) (1,622,731) Interest 768,438 335,620 1,104,058 Total investment income 375,319 (893,992) (518,673) Less investment expense (35,253) (45,557) (80,810) Net investment income 340,066 (939,549) (599,483) Total additions 925,335 (342,623) 582,712 DEDUCTIONS '— Benefits and refunds 860,382 852,421 1,712,803 Administrative 39,937 51,585 91,522 Total deductions 900,319 904,006 1,804,325 NET INCREASE (DECREASE) 25,016 (1,246,629) (1,221,613) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,496,069 17,487,246 37,983,315 December 31 $ 20,521,085 $ 16,240,617 $ 36,761,702 (See independent auditor's report.) - 82 - VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL POLICE PENSION FUND For the Year Ended December 31, 2002 Budget Actual Variance ADDITIONS _ Contributions Employer contributions $ 321,845 $ 338,565 $ 16,720 Employee contributions 265,800 246,704 (19,096) Total contributions 587,645 585,269 (2,376) Investment income Net appreciation(depreciation) in fair value of investments - (393,119) (393,119) Interest 1,500,000 768,438 (731,562) Total investment income 1,500,000 375,319 (1,124,681) Less investment expense (35,255) (35,253) (2) Net investment income 1,464,745 340,066 (1,124,683) Total additions 2,052,390 925,335 (1,127,059) DEDUCTIONS Benefits and refunds 874,480 860,382 14,098 Administrative 30,845 39,937 (9,092) Total deductions 905,325 900,319 5,006 NET INCREASE (DECREASE) $ 1,147,065 25,016 $ (1,122,053) — NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,496,069 December 31 $ 20,521,085 (See independent auditor's report.) — - 83 - VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CHANGES IN PLAN NET ASSETS - BUDGET AND ACTUAL FIREFIGHTERS'PENSION FUND For the Year Ended December 31, 2002 Budget Actual Variance ADDITIONS Contributions Employer contributions $ 384,200 $ 417,022 $ 32,822 Employee contributions 180,500 179,904 (596) Total contributions 564,700 596,926 32,226 Investment income Net appreciation(depreciation) in fair value of investments - (1,229,612) (1,229,612) Interest 1,275,000 335,620 (939,380) Total investment income 1,275,000 (893,992) (2,168,992) Less investment expense (48,800) (45,557) (3,243) Net investment income 1,226,200 (939,549) (2,172,235) Total additions 1,790,9.00 (342,623) (2,140,009) DEDUCTIONS _ Benefits and refunds 899,010 852,421 46,589 Administrative 46,640 51,585 (4,945) Total deductions 945,650 904,006 41,644 NET INCREASE(DECREASE) $ 845,250 (1,246,629) $ (2,098,365) NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 17,487,246 December 31 $ 16,240,617 (See independent auditor's report.) - 84 - 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 GENERAL FIXED ASSETS ACCOUNT GROUP December 31, 2002 _ GENERAL FIXED ASSETS Land $ 616,829 Buildings and improvements 9,406,615 Other equipment 2,379,986 Computer equipment 1,581,660 Construction in progress 8,630,698 TOTAL GENERAL FIXED ASSETS $ 22,615,788 INVESTMENT IN GENERAL FIXED ASSETS Current revenues $ 16,062,655 Proceeds of indebtedness 5,628,191 Gifts 924,942 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 22,615,788 (See independent auditor's report.) - 85 - A ^ 111' 'v l ', y sm3 ftTy+ �wnPHI " XaAv " �- Rm �, v+ �TwTm °M l ^&! ; v ° R !" .,- -MPtlSC4Afi "R , " 1. . ^ i4, aT ^x. , Y . mi.fr � X . ag g. x ^ . ,�. �' C' AAM )� i 3 '✓ PRIMEr J e i s tI j a F { y 3 � sx M� y a+ y' t fi iill a`>q a �P -r , E f � Y ✓ ,z t f I El f 1 f ! 3" ;' ; ��, �� - �� �91, � " 11 ,-,, �. { * F i, r _1'.` LiW1--QQQ0nQQ,� i'll", ,;, �� :"'': , �� ' �,,: �. ,I�� ,� Y M �`: RMPS " MAY N. 1 1 r� �, ,. '� . 3 �a s �, to 4 GENERAL FIXED ASSETS ACCOUNT GROUP General Fixed Assets Account Group - to account for fixed assets not accounted for in Proprietary or Trust Funds. T VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE GENERAL FIXED ASSETS ACCOUNT GROUP December 31, 2002 _ GENERAL FIXED ASSETS Land $ 616,829 Buildings and improvements 9,406,615 Other equipment 2,379,986 Computer equipment 1,581,660 Construction in progress 8,630,698 TOTAL GENERAL FIXED ASSETS $ 22,615,788 INVESTMENT IN GENERAL FIXED ASSETS Current revenues $ 16,062,655 Proceeds of indebtedness 5,628,191 Gifts 924,942 ` TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 22,615,788 (See independent auditor's report.) - 85 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF GENERAL FIXED ASSETS-BY FUNCTION AND ACTIVITY GENERAL FIXED ASSETS ACCOUNT GROUP December 31,2002 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 - 1,200 19,716 - - 20,916 General management - 2,200,686 19,931 - 8,630,698 10,851,315 General services - - 47,118 - - 47,118 Emergency management - - 12,156 - - 12,156 Village communication center - - 333,750 - - 333,750 Purchasing and grants - - 941 - - 941 Information services - 2,257 - 1,581,660 - 1,583,917 Financial services - - 21,512 - - 21,512 �. Engineering - - 46,737 - - 46,737 Total general government 616,829 2,282,679 509,369 1,581,660 8,630,698 13,621,235 '- PUBLIC SAFETY Police department - 108,667 622,500 - - 731,167 Fire department - 674,636 913,023 - - 1,587,659 Total public safety - 783,303 1,535,523 - - 2,318,826 PUBLIC WORKS .� Administrative - 682,410 14,976 - - 697,386 Street maintenance - 268,144 170,438 - - 438,582 Forestry - - 65,335 - - 65,335 Total public works - 950,554 250,749 - - 1,201,303 CULTURE AND RECREATION .. Library - 5,390,079 84,345 - - 5,474,424 Total culture and recreation - 5,390,079 84,345 - - 5,474,424 TOTAL GENERAL FIXED ASSETS $ 616,829 $ 9,406,615 $ 2,379,986 $ 1,581,660 $ 8,630,698 $ 22,615,788 (See independent auditor's report.) -86- 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 31,2002 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 2,452,911 243,301 475,595 2,220,617 General services 8,225 38,893 - 47,118 _ Emergency management 12,156 - - 12,156 Village communication center 95,980 237,770 - 333,750 Purchasing and grants 941 - - 941 _ Information services 1,527,370 87,287 30,740 1,583,917 Financial services 21,512 - - 21,512 Engineering 46,737 - - 46,737 Total general government 4,889,621 607,251 506,335 4,990,537 PUBLIC SAFETY Police department 742,885 6,000 17,718 731,167 Fire department 1,717,029 33,630 163,000 1,587,659 Total public safety 2,459,914 39,630 180,718 2,318,826 PUBLIC WORKS Administrative 697,386 - - 697,386 Street maintenance 438,582 - - 438,582 Forestry 65,335 - - 65,335 _ Total public works 1,201,303 - - 1,201,303 CONSTRUCTION IN PROGRESS Municipal complex 3,593,661 5,037,037 - 8,630,698 New library 4,638,035 717,461 5,355,496 - Total construction in progress 8,231,696 5,754,498 5,355,496 8,630,698 CULTURE AND RECREATION Library 308,994 5,432,309 266,879 5,474,424 Total culture and recreation 308,994 5,432,309 266,879 5,474,424 TOTAL GENERAL FIXED ASSETS $ 17,091,528 $ 11,833,688 $ 6,309,428 $ 22,615,788 (See independent auditor's report.) - -87- �I � - 1 Al'410 � C ANT A - 1 OAK f Is �fvlsttvi t TOO 41 � s I i k loll qi lots Ell -17 jS LOW will S ANSI �G S" 1 1 VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL REVENUES BY SOURCE Last Ten Fiscal Years Fiscal Year 1993* 1994 1995 1996 1997 1998 1999 2000 2001 2002 Intergovernmental $ 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 $ 12,015,110 Property taxes 846,501 549,482 5,410 - - - - - - - Utility taxes 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 4,422,058 Hotel/motet taxes 163,784 235,606 274,041 290,198 312,383 330,953 338,951 353,692 308,101 297,911 Licenses and permits 261,461 322,779 477,624 374,617 404,998 391,789 432,724 623,858 324,131 468,403 Service charges 498,440 293,743 336,146 423,139 305,137 364,650 425,752 389,557 374,409 560,204 Fines and penalties 135,419 280,339 220,593 211,809 214,086 222,239 198,769 223,462 300,311 311,750 Investment income 171,420 426,127 713,992 784,652 983,733 1,043,142 849,568 1,347,175 1,135,564 486,149 Miscellaneous 189,205 233,836 253,327 296,482 246,490 603,548 665,606 1,679,561 497,185 125,766 TOTALREVENUES $ 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 $ 18,687,351 *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 -88- VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal Year 1993* 1994 1995 1996 1997 1998 1999 2000 2001 2002 General government $ 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 $ 10,847,376 Public safety 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 9,269,396 Public works 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 2,689,909 Culture and recreation 264,471 462,781 539,734 726,820 1,010,800 1,056,802 1,144,361 1,104,942 1,245,024 1,603,019 Debt service 944,820 944,821 - - - - - - - - TOTAL EXPENDITURES $ 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 $ 24,409,700 *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- r 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* 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 2002 2001 - - 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 - 90 - 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 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 2001 1,181,481 3,544,443 33.33 Data Source Office of the County Clerk _ - 91 - VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Tax Rates Village of Oak Brook 0.0977 0.0641 - - - - - - - Basic Town 0.8171 0.8348 0.8089 0.7141 0.6095 0.6072 0.5834 0.5601 0.5379 0.5072 Junior College#502 0.2087 0.2058 0.2068 0.2062 0.2053 0.2042 0.2027 0.2006 0.1966 0.1930 Grade School#53 1.0248 1.0683 1.0763 1.0605 1.0458 1.0362 1.0237 0.9862 0.9689 0.9476 High School#86 1.6595 1.6406 1.6122 1.5907 1.4944 1.4885 1.5258 1.4881 1.4367 1.4250 Oak Brook Park District 0.2051 0.2098 0.2064 0.2045 0.1997 0.1932 0.1911 0.1877 0.1674 0.1538 TOTAL TAX RATES 4.0129 4.0234 3.9106 3.7760 3.5547 3.5293 3.5267 3.4227 3.3075 3.2266 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 -92- 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* 1994 1995 1996 1997 1998 1999 2000 2001 2002 (1)Population 9,087 9,087 9,087 9,087 9,087 9,087 9,087 8,702 8,702 8,702 (2)Assessed value $ 878,225 $ 875,114 $ 887,591 $ 905,788 $ 938,948 $ 972,447 $ 1,005,097 $ 1,045,985 $ 1,100,468 $ 1,181,481 (3)Gross general obligation bonded debt 1,800,000 900,000 - - - - - - - - (3)Less debt service funds 261,159 265,447 - - - - - - - Net general bonded debt 1,538,841 634,553 - - - - - - - - Ratio of net general bonded debt to assessed value 175.22% 72.51% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net general bonded debt per capita $ 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 -93 - r VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2002 (2) *Percentage (1) of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt w Village of Oak Brook $ - 100.00 $ - DuPage County 218,660,000 4.59 10,042,380 DuPage Forest Preserve 230,046,835 4.59 10,565,342 DuPage Water Commission 92,675,000 4.82 4,464,913 Park Districts 3,665,000 67.32 2,467,212 Elementary School Districts 53,095,000 4.43 2,351,046 High School Districts 99,328,626 7.41 7,359,199 Unit District 205 77,135,000 8.23 6,349,674 -- TOTAL $ 774,605,461 $ 43,599,766 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 - 94 - 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* 1994 1995 1996 1997 1998 1999 2000 2001 2002 Principal $ 900,000 $ 900,000 $ $ - $ - $ _ $ _ $ _ $ Interest 44,100 44,821 TOTAL DEBT SERVICE $ 944,100 $ 944,821 $ - $ - $ - $ _ $ _ $ _ $ $ _ TOTAL GENERAL GOVERNMENTAL EXPENDITURES $ 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 $ 24,409,700 RATIO OF DEBT SERVICE TO GENERAL GOVERNMENTAL EXPENDITURES 11.76% 7.20% 0.00% 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 -95- 1 VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF BOND COVERAGE WATERWORKS SYSTEM BONDS Last Ten Fiscal Years Fiscal Year 1993* 1994 1995 1996 1997 1998 1999 2000 2001 2002 Gross revenue $ 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 $ 3,683,958 Expenses 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 4,207,445 NET REVENUE AVAILABLE FOR DEBT SERVICE $ 491,295 $ 662,214 $ 145,732 $ (372,972) $ 163,779 $ 147,287 $ (407,365) $ (370,901) $ (509,541) $ (523,487) DEBT SERVICE REQUIREMENTS Principal $ - $ 225,000 $ 250,000 $ 275,000 $ - $ - $ $ - $ $ - Interest 16,350 26,850 16,000 5,500 - - - - TOTAL DEBT SERVICE $ 16,350 $ 251,850 $ 266,000 $ 280,500 $ $ - $ $ - $ $ - COVERAGE 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 -96- VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC STATISTICS December 31, 2002 (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 _ 2000 8,702 76,668 50 3.60 Data Sources (1)U.S. Census Bureau (2)Illinois Department of Bureau of Labor Statistics - 97 - VILLAGE OF OAK BROOK, ILLINOIS PROPERTY VALUE AND CONSTRUCTION Last Ten Fiscal Years (1) (1) 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 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 2002 3,544,443 0 0 32 22,614 * 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 — - 98 - VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL TAXPAYERS December 31, 2002 Percentage 2001 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation Oakbrook Shopping Center, LLC Shopping Center $ 75,320,860 6.38% McDonald's Corporation Office Buildings 40,870,210 3.46% Metlife Life Insurance 19,429,990 1.64% _ T. Kemp Archon Group Office Buildings 17,834,690 1.51% SFERS Real Estate Group Executive Towers 14,554,260 1.23% Prime Group Realty Trust Office Buildings 13,970,080 1.18% Carramerica Office Buildings 12,465,1 10 1.06% _ CTF Hotels and Resorts Hotel 11,259,090 0.95% Equity Office Property Office Building 10,962,580 0.93% Jones, Lang, LaSalle Hotel/Office Building 9,874,470 0.84% $ 226,541,340 19.18% Data Source Office of the County Clerk - - 99 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF INSURANCE IN FORCE December 31,2002 Insurance Coverage Amount of Type of Insurance Company Expires Coverage Village Manager's Bond Intergovernmental Risk Management Agency 12/31/02 $ 150,000 Treasurer's Bond Intergovernmental Risk Management Agency 12/31/02 100,000 Host Liquor Liability Lloyds of London Insurance Company 11/24/03 2,000,000 Contingent Business _ Interruption Insurance for Loss of Sales Tax Revenues Intergovernmental Risk Management Agency 12/31/02 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. IRMA provides loss protection in excess of a deductible of$1,000 per occurrence to be paid by each municipality. IRMA 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. IRMA 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 31,2002,IRMA members totaled 74 municipalities. Data Source Village Records,IRMA _ 100- VILLAGE OF OAK BROOK,ILLINOIS MISCELLANEOUS STATISTICS December 31, 2002 Date of Incorporation February 21, 1958 Form of Government Seven-member Board of Trustees, including President: Village Manager appointed by Board of Trustees Area 8.5 Square Miles Miles of Streets 55 miles Number of Street Lights 565 Fire Protection "— Number of stations 2 Number of firefighters 34 Number of paid on call firefighters 9 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 53 Number of students 499 Municipal Water Department Number of customers 5,510 Total water pumped (in thousands) 1,407,000 gallons Average daily consumption 3.855 million gallons Miles of water mains 79 Building pernaits issued 819 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 398 acres - 101 - VILLAGE OF OAK BROOK,ILLINOIS MISCELLANEOUS STATISTICS (Continued) December 31,2002 Culture Number of libraries 1 Number of books, audiovisual materials, and other collection items 75,262 '— Census data 1960 324 1970 4,164 1975 5,281 1980 6,641 1984 7,263 1990 9,087 2000 8,702 Employees Full-time 163 Part-time/seasonal 273 Data Source Village Records w w - 102 -