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CAFR (Year Ended December 31, 2003)
OF OAk 0 - o t� A Q) ..V COU01 VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Elided December 3I, 2003 VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2003 4. Prepared by the Finance Department Darrell J. Langlois ,- Finance Director/Treasurer VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION PrincipalOfficials............................................................................................................. i OrganizationChart............................................................................................................ ii Certificate of Achievement for Excellence in Financial Reporting.................................................................................. iii Letter of Transmittal from the Finance Director/Treasurer.............................................. iv-x FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT........................................................................ 1-2 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS _ Management's Discussion and Analysis...................................................................... 3-15 Basic Financial Statements Government-Wide Financial Statements Statementof Net Assets...................................................................................... 16 Statement of Activities17-18 ....................................................................................... Fund Financial Statements w Governmental Funds Balance Sheet................................................................................................ 19 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Assets............................ 20 Statement of Revenues, Expenditures and Changes in Fund Balances......... 21 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities...................................................... 22 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Assets23 ................................................................................ Statement of Revenues, Expenses and Changes in Net Assets..................... 24 Statementof Cash Flows............................................................................... 25-26 Fiduciary Funds Statement of Fiduciary Net Assets ................................................................ 27 Statement of Changes in Fiduciary Net Assets ............................................. 28 Notes to Financial Statements................................................................................. 29-54 REQUIRED SUPPLEMENTARY INFORMATION y Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual - General Fund............................................................................. 55 Notes to Required Supplementary Information............................................................ 56 Schedule of Funding Progress Illinois Municipal Retirement Fund 57 PolicePension Fund................................................................................................ 58 Firefighters' Pension Fund...................................................................................... 59 Schedule of Employer Contributions Illinois Municipal Retirement Fund........................................................................ 60 PolicePension Fund................................................................................................ 61 Firefighters' Pension Fund...................................................................................... 62 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) �► FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ................................................... 64 PROPRIETARY FUNDS INTERNAL SERVICE FUNDS Combining Statement of Net Assets................................................................... 65 Combining Statement of Revenues, Expenses and Changesin Net Assets...................................................................................... 66 Combining Statement of Cash Flows................................................................. 67-68 Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual Self-Insurance Fund....................................................................................... 69 GarageFund.................................................................................................. 70 Capital Replacement Fund............................................................................ 71 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Plan Net Assets .......................................................... 72 Combining Statement of Changes in Plan Net Assets........................................ 73 Schedule of Changes in Plan Net Assets - Budget and Actual PolicePension Fund...................................................................................... 74 Firefighters' Pension Fund75 ............................................................................ VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) _ FINANCIAL SECTION (Continued) LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long-Term Debt......................................................................... 76 SUPPLEMENTAL DATA Schedule of Revenues - Budget and Actual - General Fund........................................ 77 Schedule of Expenditures - Budget and Actual - General Fund.................................. 78-85 — Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Infrastructure Fund.................................................................... 86 Schedule of Revenues, Expenses and Changes in Net Assets - -� Budget and Actual -Waterworks System Fund......................................................... 87 Schedule of Operating Expenses - Budget and Actual - Waterworks System Fund88 ` .......................................................................................... Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual - Sports Core Fund...................................................................... 89 Schedule of Operating Revenues - Budget and Actual - SportsCore Fund........................................................................................................ 90 Schedule of Operating Expenses - Budget and Actual - SportsCore Fund........................................................................................................ 91-92 STATISTICAL SECTION Government-Wide Information Government-Wide Revenues....................................................................................... 93 Government-Wide Expenses by Function.................................................................... 94 Fund Information General Governmental Revenues by Source - Yti LastTen Fiscal Years................................................................................................. 95 General Governmental Expenditures by Function - Last Ten Fiscal Years................................................................................................. 96 '- Property Tax Levies and Collections - Last Ten Fiscal Years................................................................................................. 97 Assessed and Estimated Actual Value of Taxable Property- LastTen Levy Years .................................................................................................. 98 r VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION (Continued) Fund Information (Continued) Property Tax Rates - Direct and Overlapping Governments - LastTen Levy Years .................................................................................................. 99 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita- LastTen Fiscal Years................................................................................................. 100 Schedule of Direct and Overlapping Bonded Debt...................................................... 101 Ratio of Annual Debt Service Expenditures for General Bonded .,, Debt to Total General Governmental Expenditures - Last Ten Fiscal Years............. 102 Schedule of Bond Coverage Waterworks System Bonds - LastTen Fiscal Years........:........................................................................................ 103 DemographicStatistics................................................................................................. 104 Property Value and Construction- LastTen Fiscal Years................................................................................................. 105 PrincipalTaxpayers...................................................................................................... 106 Schedule of Insurance in Force.................................................................................... 107 Miscellaneous Statistics............................................................................................... 108-109 INTRODUCTORY SECTION T T� carr R 1' +s VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2003 Kevin Quinlan, Village President Linda K. Gonnella, Village Clerk BOARD OF TRUSTEES Stelios Aktipis Susan Chase Korin Ne George T. Caleel Elaine Zanms -�- John W. Craig Asif Yusif w VILLAGE MANAGER Richard B. Boehm, Village Manager FINANCE DEPARTMENT Darrell J. Langlois, Finance Director/Treasurer a. r - i - VILLAGE OF OAK BROOK ORGANIZATIONAL CHART December, 2003 Citizens of Oak Brook Advisory Boards President and and Commissions Board of Trustees Village Clerk Electrical Commission Board of Fire&Police Commissioners Village Attorney Village Manager Treasurer/Budget Officer Hotel Convention and Visitors Committee Library Commission Plan Commission Safety Pathway Committee Zoning Board of Appeals Police Pension Board Information Services Firefighters' Pension Board &Purchasing Financial Public En ineerin and Sorts Community 9 9 p Services Works Capital Projects Library Police Fire Core Development - ii - 1 1 t � ! t � 1 t t ► � � 1 ► t I I � i e.. 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, 2002 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. SSE OFp�� .f'/�r•T�rC`l�j�__ / e�`'%oFrxA �UMTEOSTATES S r • r f CANMA `^ President 6�,C(IRPORATIItR�n Executive Director .. pZt OF 04 � 90 a o G p 2 cOUNTMarch 12' 2004 � Village of President and Board of Trustees )ak Brook Village of Oak Brook 'i2oo oak Brook Road Oak Brook, Illinois 60523 r-k Brook,IL 60523-2255 Website ..a www.oak-brook.org The Comprehensive Annual Financial Report (CAFR) of the Village of Oak Administration Brook for the year ended December 31, 2003 is submitted herewith. 630.990.3000 Responsibility for both the accuracy of the information presented and the .,, FAX 630.990.0876 thoroughness and fairness of the presentation, including all disclosures, rests with Community the Village. I believe the data, as presented, is accurate in all material respects; Development that it is presented in a manner designed to fairly set forth the financial position 630.990.3045 and results of operations of the Village as measured by the financial activity of its FAX 630.990.3985 various funds and activities; and that all disclosures necessary to enable the reader Engineering to gain the maximum understanding of the Village's financial affairs have been Department included. 630.990.3010 FAX 630.990.3985 The Comprehensive Annual Financial Report has been prepared and presented in .r Fire Department conformance with generally accepted accounting principles, including for the first 630.990.3040 time all requirements of GASB Statement No. 34, Basic Financial Statements - FAX 630.990.2392 and Management Discussion and Analysis —for State and Local Governments. Police Department Statement No. 34 significantlychangede the required format of government 630.990.2358 financial statements in a number ways. The most significant of these changes was FAX 630.990.7484 to require that governments prepare entity-wide statements in addition to the fund-based financial statements traditionally prepared. Also, as part of the entity- Department Public works wide statements, the Village is required to capitalize and depreciate its fixed 630.990.3044 assets, including infrastructure The entity-wide financial statements attempt to FAx 630.472.0223 present the Village's financial position and results of operation in a manner similar to the business sector. More information on this "new reporting model" is Oak Brook provided in the Management's Discussion and Analysis, which is located in the Public Library Financial Section of this report. 600 Oak Brook Road k Brook,IL 60523-2200 The Comprehensive Annual Financial Report is presented in three sections: 630.990.2222 introductory, financial and statistical. The introductory section, which is FAx 630.990.4509 unaudited, includes this transmittal letter, the Village's organizational chart and a 'Mak Brook Sports Core list of principal officials as of the end of the reporting period. The financial section includes the auditor's report, management's discussion and analysis Bath&Tennis Club (MD&A), the general purpose external financial statements, combining and 700 Oak Brook Road individual fund statements and schedules, and required supplementary Oak Brook,IL 60523-4600 information. The statistical section, which is unaudited, includes financial and 630.990.3020 FAx 630.990.1002 demographic information,which is generally presented on a multi-year basis. Golf Club 2606 York Road ik Brook,IL 60523-4602 630.990.3032 FAX 630.990.0245 1V Village as indicated by McDonald's commitment to remain in the Village and in the renovation of several older office buildings. Major Initiatives In 2003, the Village completed the second of two major building projects that have been planned for since the 1990's. In 2002, the new Library building was completed at a cost of$5.7 million. The Municipal Complex Project, with a total cost of$10.1 million, was completed during 2003. —' This project included a major renovation of the Police Department as well as construction of an addition to Village Hall that now houses Fire Station #1, Fire Department administration, Community Development, Engineering, Information Services, the Communications Center, a multi-purpose training room and an Emergency Operating Center. Also in 2003, significant progress was made on the installation and implementation of a system-wide water meter reading system. The Village also completed the 2003 paving program, upgraded most of the mobile data terminals in patrol vehicles to the IVAC MDT/Video system, and continued design work on several safety pathway projects. Included in the 2004 budget is the 2004 paving project, completion of the automated water meter system project, replacement of Fire Pumper Unit 911 and Street Sweeper Unit 508, several water main projects including replacement of the water main on Midwest Road, pump and motor replacements at Reservoir A, and design and construction of several safety pathway projects. In later years, the Five-Year Financial Plan includes continuation of the annual paving program, improvements to the Village's safety pathway system, replacement of the roof at the Public Works facility, exterior and structural repairs at Old Butler School, 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. vi 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 1W estimated purchase amounts prior to the release of purchase orders to vendors. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from a broader perspective of the specific environment which the Village operates. Local Economy The Village of Oak Brook has a large and diverse retail sales tax base which has enabled the Village to operate since inception without a real estate tax. With sales taxes being the largest source of revenue, the local and national economy has a significant effect on the amount of revenue the Village receives. Like most other communities, since the late 1990's through 2003 Oak Brook has experienced flat to declining sales tax revenue. In addition to the regional and national trends, Oak Brook has experienced the relocation of several significant sales tax payers �— to other local and out-of-state locations. This has resulted in revenue declines in excess of the national averages and has caused many challenges in funding the cost of government services. In order to find a permanent solution to this problem, the Village Board asked the voters to authorize the imposition of a non-home rules sales tax of 0.25% at the March, 2004 primary election. An overwhelming majority(74%) voted in favor of the proposal. Thus,beginning July 1, 2004 it is estimated that the Village will begin to receive an additional $2.25 million annually from the new tax. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This allow existing revenue sources used for those purposes (primarily utility taxes) for use on other governmental functions and should provide a long-term solution for funding governmental activities. Long-term Financial Planning s• The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Objectives-this is an annual process in which the Village Board and staff express specific results to be accomplished. Typically, objectives relate to a specific task or project or to a change in methods or operations designed to achieve the stated objective. vii Roadway Maintenance Plan-this plan is based on the Village's pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated annually, includes a long-range schedule of roadway maintenance activities as well as cost projections over the next ten year period in order to plan for the orderly maintenance of the Village's roadway system. Five-Year Financial Plan-this document is prepared annually in order to provide the Village Board and the community with a five year projection of the financial condition of each of the twelve funds that comprise the Village's financial structure. This document is not as precise as the annual budget but it does project both revenues and expenditures for each of the next five years. Annual Budget-using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers (called"programs") and sets the spending plan for the coming year. 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 92.2% funded, the Police Pension Fund was 89.4% funded, and the Firefighters' Pension Fund was 81.3% funded. 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. 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 31St Street were used to call $630,000 of the certificates during 2001. In 2003, the remaining certificates were called using proceeds of the Series 2003 General Fund Refunding Certificates. This refunding was done in order to adjust the annual debt service requirement to a level the Sports Core Fund could viii more support (the remaining repayment period was extended from 2007 to 2012). Both the 1999 and 2003 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. Cash and Investment 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. The benchmark rate for evaluating the Village's investment performance is the three month Treasury bill rate plus 0.50%. For the year ended December 31, 2003 the total return on the Village's investments was 1.55% as compared to benchmark rate of 1.51%. The Police Pension Fund and Firefighter's Pension Fund may invest in any type of investment instrument permitted by Illinois law, as described in 40 ILCS 5/1-113.1 through 113.4. Permitted investments include U.S. government and agency securities, certificates of deposits, common and preferred stocks, and mutual funds. By law stock and mutual fund investments are limited to 45% of the Fund's total assets. For the year ended December 31, 2003, the approximate rate of return for the Police Pension Fund and Firefighters'Pension Fund was 11.8% and 14.5%, respectively. The favorable returns are due mainly to the performance of the Fund's equity mutual fund investments. Risk Management The Village of Oak Brook has an active 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. Independent Audit �. 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 -S auditor's opinion has been included in this Report. ix 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, 2002. 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 26 consecutive years. We believe that our current Report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another Certificate. '— Acknowledgments The preparation of this Report could not be accomplished without the efficient and dedicated services of the entire staff of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this Report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. .r Darrell J. LaKglois 1 Finance Director/Treasurer x FINANCIAL SECTION a.. INDEPENDENT AUDITOR'S REPORT PW MEMBERS OF AMERICAN INSTITUTE OF 41 0 NO 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 basic financial statements of the Village of Oak Brook, Illinois as of and for the year ended December 31, 2003, as listed in the table of contents. These basic financial statements are the responsibility of the Village of Oak Brook Illinois' management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall -- financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above, present fairly, in all material respects, the financial position of the Village of Oak Brook, Illinois as of December 31, 2003, 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 basic financial statements taken as a whole. The accompanying financial information listed as combining and individual fund financial statements and schedules and supplemental data in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Village of Oak Brook, Illinois. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. — - 1 - The Village has adopted the provisions of Governmental Accounting Standards Board Statement No. 34,Basic Financial Statements -and Management's Discussion and Analysis -For State and Local Governments, Statement No. 37,Basic Financial Statements - and Management's Discussion and Analysis -For State and Local Governments: Omnibus, Statement No. 38, Certain Financial Statement Note Disclosures and Interpretation No. 6,Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements, as of January 1, 2003. This results in a change in the Village's format and content of the basic financial statements and notes to the financial statements. The Management's Discussion and Analysis and the required supplementary information listed in the table of contents is not a required part of the basic 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 basic financial statements, and, accordingly, we express no opinion thereon. C© LLQ Aurora, Illinois March 12, 2004 - 2 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 As the management of the Village of Oak Brook (the "Village"), we offer readers of the Village's financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended December 31, 2003. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Transmittal Letter (beginning on page iv) and the Village's Financial Statements (beginning .�. on page 16). This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL REPORT Historically, the primary focus of local government financial statements has been summarized fund type information on a current financial resource basis. This approach has been modified by Government Accounting Standards Board Statement No. 34 and for the first time the Village's financial statements present two kinds of statements, each with a different snapshot of the Village's finances. The focus of the new financial statements is on both the Village as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the Village's accountability. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village's finances, in a manner similar to a private-sector business. The focus of the Statement of Net Assets presents information on all of the Village's assets and liabilities, with the difference between the two reported as net assets. This statement, for the first time, combines and consolidates governmental fund's current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. (See independent auditor's report) - 3 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements (see pages 16-18) distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village reflect the Village's basic services, including administration, police, fire and emergency medical services, engineering, public works, library, and community development. The business-type activities of the Village include the waterworks system and operations of the Oak Brook Sports Core. Fund Financial Statements -- Traditional users of governmental financial statements will find the Fund Financial Statements to be more familiar. The focus of the presentation is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village maintains 5 individual governmental funds. Information is presented separately in the governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balances for the General Fund and Infrastructure Fund, both of which are considered to be "major" funds. Data from the other 3 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. (See independent auditor's report) -4 - .� VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) The Village adopts an annual budget for each of its governmental funds. A budgetary .... comparison statement has been provided elsewhere in this report to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 19 through 22 of this report. Proprietary Funds. The Village maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village uses enterprise funds to account for its waterworks system and the operations of the Oak Book Sports Core. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village's various functions. The Village uses internal service funds to account for the costs of health and dental insurance, garage operations, and the funding of equipment replacement. Because the Village's costs for these items relate to both governmental and business-type functions, the costs have been allocated to each type of activity where appropriate. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Waterworks System and the Oak Brook Sports Core, both of which are considered to be major funds of the Village. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 23 through 26 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters' Pension Fund. The basic fiduciary fund financial statements can be found on pages 27 through 28 of this report. Infrastructure Assets Historically, a government's largest group of assets (infrastructure assets- roads, bridges, storm sewers, etc.) have not been reported nor depreciated in governmental financial statements. GASB Statement No. 34 requires that these assets be valued and reported within the Governmental column of the Government-wide Statements. Additionally, the government must -- elect to (1) depreciate the assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity (modified (See independent auditor's report) - 5 - a VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) approach). The Village has chosen to depreciate assets over their useful life. If a road project is considered maintenance-a recurring cost that does not extend the original useful life or expand its capacity-the cost of the project will be expensed. An "overlay" of a road will be considered maintenance whereas a"rebuild" of a road will be capitalized. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data ... provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 29 through 54 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village's progress in funding its -- obligation to provide benefits to its employees. Required supplementary information can be found on pages 57 through 62 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds, and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and �. schedules can be found on pages 63 through 76 of this report. Financial Analysis of the Village as a Whole In accordance with GASB Statement No. 34, the Village is not required to restate prior periods for the purposes of providing comparative information. However, in future years, when prior year information is available, a comparative analysis of government-wide information will be presented. i �t (See independent auditor's report) - 6 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) GOVERNMENT-WIDE STATEMENTS Net Assets �- The following table reflects the condensed Statement of Net Assets. Table 1 Statement of Net Assets As of December 31, 2003 Total Governmental Business-Type Primary Activities Activities Government Current and Other Assets $ 19,789,377 $ 3,678,952 $ 23,468,329 ..- Capital Assets 65,313,448 25,210,171 90,523,619 Total Assets 85,102,825 28,889,123 113,991,948 Long-Term Liabilities 3,308,883 1,205,000 4,513,883 Other Liabilities 3,101,626 865,850 3,967,476 Total Liabilities 6,410,509 2,070,850 8,481,359 Net Assets: Invested in Capital Assets,Net of Debt 61,903,448 23,850,171 85,753,619 Restricted 1,065,232 - 1,065,232 Unrestricted 15,723,636 2,968,102 18,691,738 —" Total Net Assets $ 78,692,316 $ 26,818,273 $ 105,510,589 The Village's combined net assets decreased from $107.7 to $105.5 million during 2003. Of this $2.2 million decrease, $1.1 million is attributable to governmental activities and $1.1 million related to business-type activities. Depreciation expense was the primary cause of the decrease in the net assets of the governmental activities. Net assets of the business-type activities decreased primarily due to outlays associated with the system-wide automated water meter reading project. For more detailed information, see the Statement of Net Assets on page 16. (See independent auditor's report) - 7 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Activities The following table summarizes the revenue and expenses of the Village's activities for 2003: Table 2 Changes in Net Assets For the Fiscal Year Ended December 31,2003 Total Governmental Business-Type Primary „r Activities Activities Government REVENUES Program Revenues: Charges for Services $ 1,795,814 $ 7,312,320 $ 9,108,134 Grants and Contributions 310,979 310,979 General Revenues: Sales and Local Use Taxes 9,825,278 9,825,278 Utility Taxes 4,500,108 4,500,108 Other Taxes 1,113,874 1,113,874 Other 628,553 51,521 680,074 Total Revenues 18,174,606 7,363,841 25,538,447 EXPENSES General Government 4,934,634 4,934,634 Public Safety 9,507,203 9,507,203 Public Works 2,993,872 2,993,872 Culture and Recreation 1,642,384 1,642,384 _.. Waterworks System 5,350,750 5,350,750 Sports Core 3,739,185 3,739,185 Interest on Long-Term Debt 168,863 168,863 Total Expenses 19,246,956 9,089,935 28,336,891 Excess Before Special Items and Transfers (1,072,350) (1,726,094) (2,798,444) Special Item-Gain on Sale of Capital Assets - 616,470 616,470 Change in Net Assets $ (1,072,3 50) $ (1,109,624) $ (2,181,974) Total Net Assets $ 78,692,316 $ 26,818,273 $105,510,589 (See independent auditor's report) - 8 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) �.- 2003 Revenues By Source ,... Other Other 2.7% Charges for Taxes Services 4.3% 35.7% Utility Taxes 17.6% Grants and Contributions 1.2% Sales and Use Taxes 38.5% 2003 Expenses by Function Sports Core General 13.2% Government p, 18.0% Waterworks System -- 18.9% Culture & Recreation Public Safety 5.8% 33.5% Public Works 10.6% There are eight basic impacts on revenues and expenses as reflected below: Normal Impacts Revenues Economic condition- this can reflect a declining, stable, or growing economic environment and has a substantial impact on state income, sales, and utility tax revenue as well as public spending habits for building permits, elective user fees, and consumption volumes. (See independent auditor's report) - 9 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Increase/Decrease in Village approved rates- while certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase or decrease rates (water fees,utility tax rates, permit fees, etc.) Changing patterns in intergovernmental and grant revenue (both recurring and non- recurring-certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring or one-time grants are less predictable and often distort their impact on year-to-year comparisons. Market impacts on investment income- the Village's investment portfolio is managed using a similar average maturity to most other governments. Market conditions may cause investment income to fluctuate. Expenses Introduction of new programs- within functional expense categories, individual programs may be added or deleted in order to meet the changing needs of the Village. Changes in authorized personnel- changes in service demand may cause the Village Board to increase or decrease staffing levels. Personnel costs are the Village's most significant operating costs. Salary increases (annual adjustments and merit)- the ability to attract and retain quality personnel requires the Village to strive to have competitive salary ranges and pay practices. Inflation-while overall inflation has been reasonably modest, the Village is a major consumer of certain commodities such as supplies, fuels and parts. Some functions may experience unusual commodity specific increases. Current Year Impacts Revenues For the fiscal year ended December 31, 2003, revenues totaled $25.5 million. Revenues from sales and use taxes, the Village's largest single revenue source, amounted to more than $9.8 million or 38.5% of total revenue, a decrease of $0.2 million from 2002. This decrease is attributable to receipt of a large one-time sales tax payment for the November, 2002 liability period as well as the overall economy in general. Utility taxes, which includes the taxes imposed on electric, natural gas, and telecommunications services, were $4.5 million or 17.6% of total revenues. This amounts to a decrease of $0.2 million or 5% as compared to 2002. The decline in this revenue source is attributable to the overall economy in general as well as the high level of competition in the telecommunications industry. Also, beginning in 2003, the State of Illinois assumed collection responsibilities for telecommunication taxes. In addition to limiting our ability to monitor and enforce the collection (See independent auditor's report) - 10 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) of these revenues, the timing of receipts to the Village increased from one month after the liability period to three months. The "other taxes" classification includes a number of different revenue sources including income taxes, personal property replacement taxes, foreign fire insurance taxes, and hotel taxes. For '— 2003, these revenues were $1.1 million or 4.3% of total revenues, which is essentially unchanged from 2002. Increases in hotel and foreign fire insurance tax revenues have been offset by declines in many state shared revenue sources, most notable income taxes. In 2003 the amount allocated for tax refunds was increased significantly by the State which reduced the amount allocated to the local distributive fund. The overall economy has also negatively impacted these revenue sources. Charges for services, which include revenue from water sales as well as user fees from the Oak Brook Sports Core, were $9.1 million or 35.7% of total revenue. Water system revenues were essentially unchanged from 2002 levels. Sports Core revenues increased $0.2 million due primarily to fee increases at the Golf Club. Various increases in permit fees, ambulance charges, and inspection charges have had a positive impact on this revenue source in 2003. Although not included on the revenue graph, the Village recognized a special revenue item, a gain on sale of assets of $616,470 in 2003. In 1998, the voters of Oak Brook authorized by referendum the sale of approximately 3 acres of surplus real estate, consisting primarily of 3 residential lots, in the Westchester Park subdivision. In 2003, one of the lots was sold, thus giving rise to the revenue item. It is expected that the remaining two lots will be sold in 2004. The Sports Core Fund is the beneficiary of the real estate sale proceeds. Expenses Oak Brook's expenses amounted to a total of $28.3 million in 2003. As required by GASB Statement No. 34, the expense totals include depreciation expense of $1.2 million for governmental activities and $0.6 million of business-type activities. Depreciation expense, which includes depreciation on infrastructure, has been allocated over the most appropriate functional category. Public safety expenses related to the operations of the Police Department and Fire Department accounted for $9.5 million or 33.5% of total expenses. This total includes the impact of bargaining contract agreements reached with both the police officers and firefighters/fire lieutenants during 2003. Expenses for the Village's two business-type activities, the Waterworks Fund and Sports Core Fund, were 18.9% and 13.2%, respectively. Expenditures for general government were $4.9 million or 18.0% of total expenses. Public Works expenses, which includes depreciation on infrastructure, was $3.0 million or 10.6% of total expenses in 2003. (See independent auditor's report) - 11 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) FINANCIAL ANALYSIS OF THE VILLAGES FUNDS As noted earlier, the Village of Oak Brook uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of December 31, 2003, the governmental funds (as presented on the balance sheet on page 19) had a combined fund balance of$14.5 million. This reflects a combined decrease of$0.3 million over the prior year, which is attributable to a decrease of$0.6 million in the General Fund partially offset by an increase of $0.3 million in the Infrastructure Fund and other governmental funds. The General Fund decrease is the result of final outlays on the Municipal Complex Project (total project cost of $10.1 million) in 2003. The Village Board amended the original budget one time during the year in order to transfer funds between operating programs that had exceeded the individual program budget in total. ._ The most significant of these transfers was done to adjust the budget for the impact of two collective bargaining agreements. The budget transfers did not alter the original General Fund budget in total. Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2003 Original Amended Budget Budget Actual REVENUES AND TRANSFERS Intergovernmental $ 10,816,900 $ 10,816,900 $ 10,583,318 Utility Taxes 3,515,000 3,515,000 3,427,393 _ Licenses & Permits 494,450 494,450 570,261 Charges for Services 553,000 553,000 703,634 Other 791,590 791,590 1,110,401 Transfers In 1,807,100 1,807,100 200,000 Total Revenues and Transfers 17,978,040 17,978,040 16,595,007 EXPENDITURES General Government 7,175,345 6,841,645 5,921,350 Public Safety 9,233,920 9,567,620 9,488,880 Public Works 1,245,265 1,245,265 1,160,946 Culture and Recreation 1,238,170 1,238,170 1,165,118 Total Expenditures and Transfers 18,892,700 18,892,700 17,736,294 Change in Fund Balance $ (914,660) $ (914,660) $ (1,141,287) (See independent auditor's report) - 12 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Intergovernmental revenues were under budget primarily due to declines in most state-shared per capita revenues. This is due to the weak economy in general as well as reductions in the amount allocated to the local government distributive fund due to increases in the amount set aside for income tax refunds. Revenue from Licenses and Permits and Charges for Services are over budget due to increased volumes as well as fee increases. Transfers In is under budget due to the *— timing delay in selling surplus real estate in Westchester Park in the Sports Core Fund (these funds are owed to the General Fund due to advances given to fund several capital projects in the Sports Core). General government expenses are significantly under budget due to more of the expenses related to the Municipal Complex Project being allocated to 2002 as opposed to 2003 than was expected at the time the 2003 budget was prepared. After accounting for the approved budget transfers, all of the other functions were under budget due to numerous causes scattered across many budget programs. None are individually significant. Capital Assets The following schedule reflects the Village's capital asset balances as of December 31, 2003. Table 4 Capital Assets As of December 31, 2003 Governmental Business-Type Activities Activities Total Land and Land Right of Way $ 32,304,134 $ 8,353,918 $ 40,658,052 Buildings and Land Improvements 18,606,090 8,546,339 27,152,429 Machinery, Vehicles, and Equipment 6,400,870 4,531,260 10,932,130 Infrastructure 29,317,787 15,372,382 44,690,169 Construction in Progress 9,300 90,193 99,493 86,638,181 36,894,092 123,532,273 Less: Accumulated Depreciation (21,324,733) (11,683,821) (33,008,554) Total $ 65,313,448 $ 25,210,271 $ 90,523,719 (See independent auditor's report) - 13 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) At year-end, the Village's investment in capital assets (net of accumulated depreciation) for both its governmental and business-type activities was $90.5 million (see Note 4 in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2003 included the following: • The completion of the Municipal Complex Project added $0.7 million to the capital assets of ... the governmental activities. Inclusive of the 2003 costs, an asset of $9.3 million was removed from construction in progress and placed in service in 2003. • The new NAC mobile data terminals were installed in Police vehicles adding $112,000 to the capital assets of the governmental activities. • Ten vehicles totaling $249,675 were purchased for use in governmental activities and two vehicles totaling $119,077 were purchased for use in business-type activities. Long-Term Debt As a non-home rule community, the Village's legal general obligation debt limit is 8.625 percent of equalized assessed valuation (EAV), or $111,590,582 based on January 1, 2002 EAV of $1,293,803,854. As of December 31, 2003, the Village has $4,770,000 of debt outstanding attributed to three installment contracts that is applicable to the legal limit (see Note 6 in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village's outstanding long-term debt: Table 5 _ Long-term Debt As of December 31,2003 Governmental Business-Type Activities Activities Total General Fund Certificates: Series 1999 $ - $ 535,000 $ 535,000 Series 2001 3,410,000 3,410,000 Series 2003 (Refunding) 825,000 825,000 Total $ 3,410,000 $ 1,360,000 $ 4,770,000 The General Fund Certificates are general obligations of the Village but are not secured by a pledge of property taxes. With respect to the 1999 and 2003 series certificates, the Village intends to use Sports Core Fund revenues to pay the annual debt service. Thus, these obligations have been included with business-type activities. Both the General Fund Certificates, Series 1999 and General Fund Certificates, Series 2001 received a rating of Aa2 from Moody's Investor Service, Inc. (See independent auditor's report) - 14 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Economic Factors Whereas real estate taxes are typically a major source of revenue in most other municipalities, the Village of Oak Brook does not levy a tax on real estate. In addition, since Oak Brook is a non-home rule community and is subject to the tax cap, this effectively limits the Village's real estate tax levy at $-0-. Thus, as compared to other municipalities, Oak Brook's revenue stream is much more dependent on the local and national economy since sales taxes, utility taxes, and state-shared revenues are the primary sources of income to the Village. Over the last several years, the state of the economy as well as the relocation of several taxpayers to other jurisdictions has resulted in significant declines in sales tax revenue. Decreases in various state-shared revenues have been well documented. In order to offset these declines, the Village has had to increase the rates of tax of various utility taxes to the state mandated maximum rates of 5% on electric and natural gas service and to 5% (1% below the maximum rate) on telecommunications taxes. Despite these rate increases the Village has still struggled to fund the ever-increasing cost of government with its existing revenue streams. In order to find a permanent solution to the revenue situation, the Village Board asked the voters to authorize the imposition of a non-home rules sales tax of 0.25% at the March, 2004 primary election. An overwhelming majority (74%) voted in favor of the proposal. Thus, beginning July 1, 2004 it is estimated that the Village will begin to receive an additional $2.25 million annually from the new tax. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This will free up existing revenue sources used for those purposes (primarily utility taxes) for use on other governmental functions and should provide a long-term solution for funding governmental activities. CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the Village's finances and to demonstrate accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Darrell J. Langlois, Finance DirectorNillage Treasurer, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. (See independent auditor's report) - 15 - VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF NET ASSETS December 31,2003 Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 13,315,048 $ 3,891,500 $ 17,206,548 Receivables(net of allowances for uncollectibles) Sales taxes 2,589,695 - 2,589,695 Utility taxes 842,162 - 842,162 Accounts 102,158 - 102,158 Billed and unbilled water sales - 350,530 350,530 Allotments 20,031 - 20,031 Accrued interest 6,966 2,098 9,064 Other 263,143 95,279 358,422 Due from other funds 933,352 (933,352) - Advances to(from)other funds 1,290,000 (1,290,000) - Prepaid items 380,000 - 380,000 Inventories 46,822 162,744 209,566 Water purchase rights - 1,400,153 1,400,153 Capital assets Non-depreciable 32,313,434 8,444,111 40,757,545 Depreciable,net of accumulated depreciation 33,000,014 16,766,060 49,766,074 Total assets 85,102,825 28,889,123 113,991,948 LIABILITIES Accounts payable 445,990 452,700 898,690 Accrued payroll 517,993 78,488 596,481 Accrued interest 13,282 9,453 22,735 Claims payable 225,800 - 225,800 Deposits 740,828 27,395 768,223 Deferred revenue 232,115 66,654 298,769 Long-term liabilities Due within one year 925,618 231,160 1,156,778 Due in more than one year 3,308,883 1,205,000 4,513,883 Total liabilities 6,410,509 2,070,850 8,481,359 NET ASSETS Investment in capital assets,net of related debt 61,903,448 23,850,171 85,753,619 Restricted for Maintenance of roadways 646,310 - 646,310 Public safety 106,486 - 106,486 Culture and recreation 312,436 - 312,436 Unrestricted 15,723,636 2,968,102 18,691,738 TOTAL NET ASSETS $ 78,692,316 $ 26,818,273 $ 105,510,589 See accompanying notes to financial statements. - 16- VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31,2003 Program Revenues _ Charges Operating Capital FUNCTIONS/PROGRAMS Expenses for Services Grants Grants PRIMARY GOVERNMENT Governmental Activities General government $ 4,934,634 $ 939,842 $ - $ - Public safety 9,507,203 819,978 1,809 - Public works 2,993,872 10,324 246,969 62,201 Culture and recreation 1,642,384 25,670 - - Interest 168,863 - - - Total governmental activities 19,246,956 1,795,814 248,778 62,201 Business-Type Activities Waterworks system 5,350,750 3,754,359 - - ... Sports core 3,739,185 3,557,961 - - Total business-type activities 9,089,935 7,312,320 - - TOTAL PRIMARY GOVERNMENT $ 28,336,891 $ 9,108,134 $ 248,778 $ 62,201 General Revenues Taxes Replacement _ Sales,local use,photo processing Utility Hotel/motel Income Other Investment income Donations Miscellaneous Gain on sale of capital assets Total CHANGE IN NET ASSETS NET ASSETS,JANUARY 1 Prior period adjustment NET ASSETS,JANUARY 1,RESTATED NET ASSETS,DECEMBER 31 -r - 17- Net(Expense)Revenue and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (3,994,792) $ - $ (3,994,792) (8,685,416) - (8,685,416) (2,674,378) - (2,674,378) (1,616,714) - (1,616,714) (168,863) - (168,863) (17,140,163) - (17,140,163) (1,596,391) (1,596,391) (181,224) (181,224) (1,777,615) (1,777,615) (17,140,163) (1,777,615) (18,917,778) 167,291 - 167,291 9,825,278 - 9,825,278 4,500,108 - 4,500,108 306,365 - 306,365 539,258 - 539,258 100,960 - 100,960 .— 158,482 51,521 210,003 410,000 - 410,000 60,071 - 60,071 - 616,470 616,470 16,067,813 667,991 16,735,804 (1,072,350) (1,109,624) (2,181,974) 79,152,859 26,167,814 105,320,673 611,807 1,760,083 2,3719890 79,764,666 27,927,897 107,692,563 $ 78,692,316 $ 26,818,273 $ 105,510,589 See accompanying notes to financial statements. - 18- VILLAGE OF OAK BROOK,ILLINOIS GOVERNMENTAL FUNDS BALANCE SHEET December 31,2003 Nonmajor Governmental Total General Infrastructure Funds Governmental ASSETS Cash and investments $ 6,792,757 $ 2,410,702 $ 1,057,696 $ 10,261,155 Receivables Sales taxes 2,589,695 - - 2,589,695 Utility taxes 777,668 64,494 - 842,162 Accounts 102,158 - - 102,158 Allotments - - 20,031 20,031 Accrued interest 5,240 589 553 6,382 Other 219,981 14,801 28,339 263,121 -� Due from other funds 933,352 8,168 - 941,520 Advances to other funds 1,290,000 - - 1,290,000 Inventories 284 - - 284 _ TOTAL ASSETS $ 12,711,135 $ 2,498,754 $ 1,106,619 $ 16,316,508 LIABILITIES AND FUND BALANCES r- LIABILITIES Accounts payable $ 200,929 $ 118,234 $ 33,219 $ 352,382 Accrued payroll 508,098 - - 508,098 Deposits payable 727,564 13,264 - 740,828 Deferred revenue 181,442 50,673 - 232,115 Due to other funds - - 8,168 8,168 Total liabilities 1,618,033 182,171 - 41,387 1,841,591 FUND BALANCES Reserved for inventories 284 - - 284 Reserved for advances 1,290,000 - - 1,290,000 Reserved for maintenance of roadways - - 646,310 646,310 Reserved for public safety - - 106,486 106,486 Reserved for culture and recreation - - 312,436 312,436 Unreserved Undesignated-general fund 9,802,818 - - 9,802,818 Undesignated-capital projects fund - 2,316,583 - 21316,583 Total fund balances 11,093,102 2,316,583 1,065,232 14,474,917 TOTAL LIABILITIES AND FUND BALANCES $ 12,711,135 $ 2,498,754 $ 1,106,619 $ 16,316,508 See accompanying notes to financial statements. - 19- VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS December 31, 2003 FUND BALANCES OF GOVERNMENTAL FUNDS $ 14,474,917 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 63,659,440 Long-term liabilities, including bonds payable, are �. not due and payable in the current period and, therefore, are not reported in the governmental funds (4,237,316) -- A portion of the net assets of the internal service funds are included in the governmental activities in the statement of net assets 4,795,275 NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 78,692,316 See accompanying notes to financial statements. - 20 - VILLAGE OF OAK BROOK,ILLINOIS GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES _ For the Year Ended December 31,2003 Nonmajor Total Governmental Governmental s General Infrastructure Funds Funds REVENUES Intergovernmental $ 10,583,318 $ 62,201 $ 298,247 $ 10,943,766 Utility taxes 3,427,393 1,072,715 - 4,500,108 Hotel/motel taxes - - 306,365 306,365 Licenses and permits 570,261 - - 570,261 Charges for services 703,634 - - 703,634 Fines and penalties 353,513 - - 353,513 Investment income 118,411 24,956 15,115 158,482 Donations 410,000 - - 410,000 Miscellaneous 228,477 - - 228,477 Total revenues 16,395,007 1,159,872 619,727 18,174,606 EXPENDITURES Current General government 5,921,350 - - 5,921,350 Public safety 9,488,880 - 48,574 9,537,454 Public works 1,160,946 466,259 279,743 1,906,948 Culture and recreation 1,165,118 - 389,488 1,554,606 Capital outlay - 404,305 - 404,305 Total expenditures 17,736,294 870,564 717,805 19,324,663 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (1,341,287) 289,308 (98,078) (1,150,057) OTHER FINANCING SOURCES(USES) Transfers in 200,000 - - 200,000 Total other financing sources(uses) 200,000 - - 200,000 NET CHANGE IN FUND BALANCES (1,141,287) 289,308 (98,078) (950,057) FUND BALANCES,JANUARY 1 11,622,582 2,027,275 1,163,310 14,813,167 ... Prior period adjustment 611,807 - - 611,807 FUND BALANCES,JANUARY 1,RESTATED 12,234,389 2,027,275 1,163,310 15,424,974 FUND BALANCES,DECEMBER 31 $ 11,093,102 $ 2,316,583 $ 1,065,232 $ 14,474,917 r See accompanying notes to financial statements. -21 - VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2003 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (950,057) Amounts reported for governmental activities in the statement activities are different because: Governmental funds report capital outlays as expenditures however, they are capitalized and depreciated in the in the statement of activities 1,126,525 The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 205,000 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Depreciation, including internal service funds (1,508,261) Change in compensated absences (33,140) Change in interest payable 790 The change in net assets of certain activities of internal service funds, excluding depreciation, is in governmental funds 86,793 CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ (1,072,350) See accompanying notes to financial statements. - 22 - VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31,2003 Business-Type Activities Waterworks Internal System Sports Core Total Service CURRENT ASSETS Cash and investments $ 3,356,460 $ 14,079 $ 3,370,539 $3,425,615 Receivables Billed and unbilled water sales 350,530 - 350,530 - Accrued interest 1,489 150 1,639 1,042 Other 16,142 79,137 95,279 22 Prepaid expenses - - - 380,000 Inventories - 162,744 162,744 46,538 Total current assets 3,724,621 256,110 3,980,731 3.853,217 ... RESTRICTED ASSETS Cash and investments - 149,239 149,239 - CAPITAL ASSETS Non-depreciable 215,800 8,228,311 8,444,111 - Depreciable,net of accumulated depreciation 11,135,544 5,464,932 16,600,476 1,819,592 _ Total capital assets 11,351,344 13,693,243 25,044,587 1,819,592 OTHER ASSETS Water purchase rights 1,400,153 - 1,400,153 - Total assets 16,476,118 14,098,592 30,574,710 5,672,809 CURRENT LIABILITIES Accounts payable 379,530 31,583 411,113 135,195 Accrued payroll 31,798 46,690 78,488 9,895 Accrued interest - 9,453 9,453 - Compensated absences payable 27,532 48,628 76,160 10,467 ... Deposits - 27,395 27,395 - Deferred revenue 13,929 52,725 66,654 Due to other funds - 933,352 933,352 Installment contracts payable 155,000 155,000 - Claims payable - - 225,800 Total current liabilities 452,789 1,304,826 1,757,615 381,357 LONG-TERM LIABILITIES Advances from other funds - 1,290,000 1,290,000 - Installment contract payable 1,205,000 1,205,000 Total long-term liabilities - 2,495,000 2,495,000 - Total liabilities 452,789 3,799,826 4,252,615 381,357 NET ASSETS Invested in capital assets,net of related debt 11,351,344 12,333,243 23,684,587 1,819,592 Unrestricted 4,671,985 (2,034,477) 2,637,508 3,471,860 TOTAL NET ASSETS $ 16,023,329 $10,298,766 26,322,095 $5,291,452 .r Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 496,178 $ 26,818,273 See accompanying notes to financial statements. -23- VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31,2003 Business-Type Activities Waterworks Internal System Sports Core Total Service OPERATING REVENUES Charges for services $ 3,754,359 $ 3,557,961 $ 7,312,320 $ 2,354,329 Total operating revenues 3,754,359 3,557,961 7,312,320 2,354,329 OPERATING EXPENSES Operations 4,947,282 3,442,728 8,390,010 433,328 Claims and insurance - - - 1,626,898 Miscellaneous - - - 9,704 Depreciation and amortization 430,460 240,689 671,149 309,646 Total operating expenses 5,377,742 3,683,417 9,061,159 2,379,576 OPERATING INCOME(LOSS) (1,623,383) (125,456) (1,748,839) (25,247) NONOPERATING REVENUES(EXPENSES) Investment income 48,868 2,653 51,521 43,373 Gain(loss)on sale of capital assets (5,283) 621,753 616,470 7,546 Interest expense - (55,768) (55,768) - Total nonoperating revenues(expenses) 43,585 568,638 612,223 50,919 INCOME(LOSS)BEFORE TRANSFERS (1,579,798) 443,182 (1,136,616) 25,672 TRANSFERS(OUT) - - - (200,000) CHANGE IN NET ASSETS (1,579,798) 443,182 (1,136,616) (174,328) NET ASSETS,JANUARY 1 15,596,058 10,102,570 25,698,628 5,318,822 Prior period adjustment 2,007,069 (246,986) 1,760,083 146,958 NET ASSETS,JANUARY 1,RESTATED 17,603,127 9,855,584 27,458,711 5,465,780 NET ASSETS,DECEMBER 31 $ 16,023,329 $ 10,298,766 26,322,095 $ 5,291,452 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 496,178 -- $ 26,818,273 See accompanying notes to financial statements. -24- i VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31,2003 Business-Type Activities Waterworks Internal System Sports Core Total Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from internal services transactions $ - $ - $ - $ 1,900,175 Receipts from customers and users 3,691,383 3,562,594 7,253,977 - Receipts from miscellaneous revenue 68,226 - 68,226 454,162 Payments to suppliers (4,285,113) (1,536,392) (5,821,505) (2,313,229) Payments to employees (514,5,97) (1,901,755) -: (2,416,352) (160,889) Net cash from operating activities (1,040,101) 124,447 (915,654) (119,781) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Utility taxes - - - 23,394 Borrowings from other funds - (530,475) (530,475) - Transfers(out) - - - (200,000) Net cash from non-capital financing activities - (530,475) (530,475) (176,606) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (135,020) (52,506) (187,526) (247,269) Proceeds from sale of capital assets - 697,676 697,676 11,603 Proceeds from installment contracts payable - 890,000 890,000 - Principal paid on installment contract payable - (1,015,000) (1,015,000) - Principal paid on capital lease payable - (38,136) (38,136) - Interest paid - (56,989) (56,989) - i Net cash from capital and related financing activities (135,020) 425,045 290,025 (235,666) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (34,220) (26,342) (60,562) (29,898) Sale of investments - - - 118,441 Interest received 58,971 3,471 62,442 51,489 Net cash from investing activities 24,751 (22,871) 1,880 140,032 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (1,150,370) (3,854) (1,154,224) (392,021) CASH AND CASH EQUIVALENTS, JANUARY 1 3,026,453 17,933 3,044,386 2,781,145 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,876,083 $ 14,079 $ 1,890,162 $ 2,389,124 (This statement is continued on the following page.) -25- VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS(Continued) For the Year Ended December 31,2003 Business-Type Activities Waterworks Internal System Sports Core Total Service CASH AND INVESTMENTS Cash and cash equivalents $ 1,876,083 $ 14,079 $ 1,890,162 $ 2,389,124 Investments(including$149,239 of restricted assets) 1,480,377 149,239 1,629,616 1,036,491 TOTAL CASH AND INVESTMENTS $ 3,356,460 $ 163,318 $ 3,519,778 $ 3,425,615 NONCASH TRANSACTIONS Capital assets included in accounts payable $ - $ - $ - $ 114,732 Unrealized gain(loss)on investments (7,434) (615) (8,049) (5,905) TOTAL NONCASH TRANSACTIONS $ (7,434) $ (615) $ (8,049) $ 108,827 RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ (1,623,383) $ (125,456) $ (1,748,839) $ (25,247) Depreciation and amortization 430,460 240,689 671,149 309,646 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable 5,250 - 5,250 8 Other receivable (13,929) (14,555) (28,484) - Prepaid expenses - - - (380,000) Inventories - 8,564 8,564 (8,327) Accounts payable 143,239 (21,532) 121,707 (18,779) Accrued payroll and compensated absences 14,947 17,549 32,496 149 Claims payable - - - 2,769 Deposits payable (10,614) (3,886) (14,500) - Deferred revenue 13,929 23,074 37,003 - NET CASH FROM OPERATING ACTIVITIES $ (1,040,101) $ 124,447 $ (915,654) $ (119,781) See accompanying notes to financial statements. -26- VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS December 31, 2003 Pension Trust — ASSETS Cash $ 437,314 Investments Illinois Funds 339,743 Certificates of Deposit 300,928 U.S. Treasury Securities 5,113,721 U.S. Agency Securities 15,706,492 State and Local Obligations 1,244,722 Mutual Funds 17,051,948 Insurance Contracts 609,898 i Accrued interest receivable 251,910 Total assets 41,056,676 LIABILITIES Accounts payable 11,354 -- Total liabilities 11,354 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS $ 41,045,322 — See accompanying notes to financial statements. - 27 - VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended December 31, 2003 ADDITIONS Contributions Employer contributions $ 965,084 Employee contributions 455,925 Total contributions 1,421,009 Investment income Net appreciation in fair value of investments 3,850,771 Interest 984,161 Total investment income 4,834,932 Less investment expense (81,642) Net investment income 4,753,290 Total additions 6,174,299 DEDUCTIONS Benefits and refunds 1,828,971 Administrative 61,708 Total deductions 1,890,679 NET INCREASE 4,283,620 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 36,761,702 December 31 $ 41,045,322 See accompanying notes to financial statements. - 28 - (This page is intentionally left blank.) VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2003 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Oak Brook, Illinois (the Village) have been prepared in conformity with accounting principles generally accepted in the United States of America (hereinafter referred to as generally accepted accounting principles (GAAP)), as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below. a. Reporting Entity The Village operates under a Village form of government with an elected Village President and Board of Trustees. Operational management is provided by a professional Village Manager employed by the Board of Trustees. Municipal services include police protection, fire protection, recreation facilities, a free public library, water supply, storm water collection, public works operations, road maintenance,building and inspectional services and general administrative services. As required by generally accepted accounting principles, these financial statements present the Village (the primary government) and its component units. The Village's financial statements include the following pension trust funds: Police Pension Employees Retirement System The Village's police employees participate in the Police Pension Employees Retirement System(PPERS). PPERS functions for the benefit of these employees and is governed its pension board. The Village and PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it possesses many of the characteristics of a legally separate government the PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's police employees and because of the fiduciary nature of such activities. The PPERS is reported as a pension trust fund. - 29 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) ... I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity(Continued) Firefighters' Pension Employees Retirement System The Village's firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees and is governed by its pension board. The Village and FPERS participants are — obligated to fund all FPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it possesses many of the characteristics of a legally separate government, the FPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's firefighters and because of the fiduciary nature of such activities. The FPERS is reported as a pension trust fund. b. Fund Accounting The Village uses funds to report on its financial position, results of its operations and cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government — functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The — minimum number of funds is maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general 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. i - 30 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting(Continued) Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government(internal service funds). Pursuant to GASB Statement No. 20,Accounting and Financial Reporting for Proprietary Funds and Other Government Entities That Use Proprietary Fund Accounting, the Village has chosen to apply all GASB pronouncements as well as those FASB pronouncements issued on or before November 30, 1989 to account for its enterprise funds. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. The Village utilizes pension trust funds which are generally used to account for assets that the Village holds in a fiduciary capacity. C. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities)report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity has been eliminated from these statements. Governmental activities,which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase,use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2)grants and standard revenues that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds,proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. - 31 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government-Wide and Fund Financial Statements (Continued) The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be _ accounted for in another fund. The Infrastructure Fund, a capital projects fund, is used to account for revenues _ and expenditures relative to the construction and maintenance of roadway, drainage and bike trail improvements. The Village reports the following major enterprise funds: The Waterworks System Fund accounts for the revenues and expenses relative to the operation of the water utility. The Sports Core Fund accounts for the revenues and expenses relative to the operation of the Sports Core. Additionally,the Village reports the following proprietary fund type: Internal service funds account for the Village's self-insured employee health and dental insurance program; the operation and maintenance of the Village's vehicle fleet equipment, and the Village's capital replacement program provided to other departments or agencies of the Village on a cost reimbursement basis. The Village reports the following fiduciary funds: The Village reports pension trust funds as fiduciary funds to account for the Police Pension Fund and Firefighters' Pension Fund. - 32 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus,Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds fund financial statements. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenues/expenses directly related to providing enterprise fund services. Incidental revenues/expenses are reported as non-operating. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues -- are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. A sixty-day availability period is used for revenue recognition for most governmental fund revenues except for sales tax and telecommunication tax which is 90 days. Expenditures generally are recorded when a fund liability is incurred. However, debt service expenditures are recorded only when payment is due by the end of the year. _ Those revenues susceptible to accrual are sales taxes, certain taxes collected and held by the State at year-end on behalf of the Village, certain charges for services and interest. Permit revenues are not susceptible to accrual because generally they are not measurable until received in cash. The Village reports deferred revenue on its financial statements. Deferred revenues arise when a potential revenue does not meet both the"measurable"and"available"or "earned"criteria for recognition in the current period. Deferred revenues also arise when resources are received by the Village before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods,when both revenue recognition criteria are met, or when the Village has a legal claim to the resources,the liability for deferred revenue is removed from the financial statements and revenue is recognized. - 33 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) In applying the susceptible to accrual concept to intergovernmental revenues (i.e., federal and state grants), the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types _ of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditures/expenses incurred. In the other, monies are _ virtually unrestricted as to purpose of expenditure/expense and are generally revocable only for failure to comply with prescribed eligibility requirements. These resources are reflected as revenues at the time of receipt or earlier if they meet the eligibility criterion. e. Cash and Investments Cash and Cash Equivalents For purposes of the statement of cash flows, the Village's proprietary 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. f. Inventories Inventories are valued at average cost, not in excess of replacement cost. Inventories in the General Fund and Garage Fund consist of expendable supplies held for consumption; inventories in the Sports Core Fund consist of inventory held for resale. The cost is recorded as an expenditure at the time individual inventory items are utilized or sold. General Fund inventories are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. - 34 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g. Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. h. Capital Assets Capital assets,which include property,plant, equipment and infrastructure assets (e.g., roads,bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of$5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property,plant and equipment is depreciated using the straight line method over the following estimated useful lives: Assets Years Land improvements 20 Buildings and building improvements 5 - 50 Equipment 5 -20 w Vehicles 2-20 Infrastructure 20 - 75 i. 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. - 35 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j. Compensated Absences — Vested or accumulated vacation, sick or compensatory leave including related social security and medicare of proprietary funds and governmental activities is recorded as an expense and liability of those funds as the benefits accrue to employees. In accordance with the provisions of Governmental Accounting Standards Board Statement No.16,Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that it is estimated _ will be taken as a termination benefit at retirement. k. Interfund Transactions _ Interfund services are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except interfund services transactions and reimbursements, are reported as transfers. — 1. Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"due to/from other _ fund"(i.e.,the current portion of interfund loans) or"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as"due to/from other funds". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are .., not available for appropriation and are not expendable available financial resources. in. Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as " liabilities in the applicable governmental activities,business-type activities or proprietary fund type financial statements. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. - 36 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) in. Long-Term Obligations (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. n. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. In the government-wide financial statements,restricted net assets are legally restricted by outside parties for a specific purpose. 2. DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds, except the pension trust funds. Each fund type's portion of this pool is displayed on the "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 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. - 37 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) 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. a. Deposits At year-end, the carrying amount of the Village's deposits with financial institutions totaled $292,624 and the bank balances totaled $324,409. 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. $ 324,409 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 $ 324,409 - 38 - — VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) 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. Fair Value Category 1 2 3 Totals U.S. government securities $ 2,771,977 $ - $ 3,347,993 $ 6,119,970 U.S. agency securities 6,963,480 - 8,743,012 15,706,492 State and local obligations - - 1,244,722 1,244,722 Negotiable certificates of deposit 200,000 - 100,928 300,928 $ 9,935,457 $ - $13,436,655 23,372,112 *Mutual Funds 17,051,948 *Illinois Funds 8,096,047 *Illinois Metropolitan Investment Fund 6,867,256 *Life Insurance Contracts 609,898 *Money Market Mutual Funds 1,717,529 TOTAL INVESTMENTS $57,714,790 *(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$296,524 and investments of $57,714,790 totaling $58,011,314 are reported in the financial statements as follows: Cash and investments - statement of net assets $17,206,548 Cash and investments - statement of fiduciary net assets 40,804,766 TOTAL $58,011,314 - 39 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 3. PROPERTY TAXES Property taxes for 2003 attach as an enforceable lien on January 1, 2003, 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, 2004 and August 1, 2004 and are payable in two installments, on or about June 1, 2004 and September 1, 2004. The County collects such taxes and remits them periodically. The Village does not have a tax levy but does receive a share of road and bridge taxes from local Townships. ' 4. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2003 was as follows: Beginning Balance, Ending Restated Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 616,829 $ - $ - $ 616,829 Land right of way 31,687,305 - - 31,687,305 Construction in progress 8,630,698 667,762 9,289,160 9,300 Total capital assets not being depreciated 40,934,832 667,762 9,289,160 32,313,434 Capital assets being depreciated Buildings,building and land improvements 9,232,205 9,373,885 - 18,606,090 Computer equipment 778,192 50,288 - 828,480 Other equipment 1,164,208 247,682 42,160 1,369,730 Vehicles 31,006 44,410 - 75,416 Infrastructure 29,286,129 31,658 - 29,317,787 Internal service fund vehicles 3,956,514 249,675 78,945 4,127,244 Total capital assets being depreciated 44,448,254 9,997,598 121,105 54,324,747 Less accumulated depreciation for Buildings,building and land improvements 2,108,675 362,673 - 2,471,348 Computer equipment 470,631 86,122 - 556,753 Other equipment 545,546 125,514 42,160 628,900 Vehicles 15,503 13,718 - 29,221 _ Infrastructure 14,533,156 632,120 - 15,165,276 Internal service fund vehicles 2,253,259 288,114 68,138 2,473,235 Total accumulated depreciation 19,926,770 1,508,261 110,298 21,324,733 Total capital assets being depreciated,net 24,521,484 8,489,337 10,807 33,000,014 GOVERNMENTAL ACTMTIES CAPITAL ASSETS,NET $65,456,316 $ 9,157,099 $ 9,299,967 $65,313,448 ' -40 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) Beginning Balance, Ending Restated Increases Decreases Balance BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 8,384,744 $ - $ 30,826 $ 8,353,918 Construction in progress 122,089 13,201 45,097 90,193 Total capital assets not being depreciated 8,506,833 13,201 75,923 8,444,111 Capital assets being depreciated Land improvements 2,811,049 40,496 - 2,851,545 Building and building improvements 5,720,698 14,592 40,496 5,694,794 Infrastructure 15,321,831 58,576 8,025 15,372,382 Vehicles 14,337 - - 14,337 Machinery and equipment 4,101,984 101,158 8,224 4,194,918 Internal service fund vehicles 214,500 119,077 11,572 322,005 Total capital assets being depreciated 28,184,399 333,899 68,317 28,449,981 Less accumulated depreciation for Land improvements 1,709,455 61,781 - 1,771,236 Building and building improvements 1,522,586 116,331 - 1,638,917 Infrastructure 5,282,559 238,091 - 5,520,650 Vehicles 5,018 1,434 - 6,452 Machinery and equipment 2,416,559 181,910 8,224 2,590,245 Internal service fund vehicles 146,463 21,530 11,572 156,421 Total accumulated depreciation 11,082,640 621,077 19,796 11,683,921 Total capital assets being depreciated,net 17,101,759 (287,178) 48,521 16,766,060 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS,NET $25,608,592 $ (273,977) $ 124,444 $25,210,171 Depreciation expense was charged to functions of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 353,269 Public safety 273,091 Public works 749,951 Culture and recreation 131,950 TOTAL DEPRECIATION EXPENSE-GOVERNMENTAL ACTIVITIES $1,508,261 - 41 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS (Continued) Construction Contracts The Village has entered into contracts for the construction or renovation of various facilities as follows: Project Expended _ Authorizations to Date Commitment 2002 paving projects $ 323,059 $ 295,535 $ 27,524 2003 paving projects 404,363 354,707 49,656 2004 paving projects 125,155 33,135 92,020 TOTALS $ 852,577 $ 683,377 $ 169,200 5. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; illnesses of employees; and natural disasters. The Village participates in the Intergovernmental Risk Management Agency(IRMA) '— which is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation's Statute to pool its risk management needs. The Village pays annual premiums to IRMA for its workers' compensation, general liability and property coverage. — The Village assumes the first $1,000 of each occurrence, with IRMA having a mix of self- insurance and commercial insurance at various amounts above that level. The Village appoints one delegate, along with an alternate delegate, to represent the Village on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. The Village, along with IRMA's other members, has a contractual obligation to fund any deficit of IRMA attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits. No such contributions have occurred during the past three years. - 42 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. 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. Through June 30, 2003, the Village was self-insured for the first $60,000 per individual for medical claims up to a maximum limit of$1,947,947 for all individuals. As of July 1, 2003, the Village was self- insured for the first $65,000 per individual for medical claims up to a maximum limit of $1,910,176 for all individuals. Commercial insurance is carried for amounts in excess of the self-insured amounts. Settlements did not exceed insurance coverage in any of the last three years. The Village is entirely self-insured for dental claims up to the annual benefit limit of$1,000 per individual. The Village's self-insurance activities are reported in the Self-Insurance Fund, an Internal Service Fund. Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and other funds, retirees, and COBRA participants 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 $225,800. A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2003 2002 CLAIMS PAYABLE, BEGINNING OF YEAR $ 223,031 $ 192,700 .,, Claims incurred and changes in estimate 1,361,993 1,291,789 Claims paid (1,359,224) (1,261,458) ... CLAIMS PAYABLE, END OF YEAR $ 225,800 $ 223,031 - 43 - i VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT Installment Contract Payable The Village has issued four 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, Current ` Issue Retired by January 1 Issuances Retirements Refundings December 31 Portion 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,secured Sports by sales and use taxes. Core $ 610,000 $ - $ 75,000 $ - $ 535,000 $ 80,000 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 i of each year,secured by sales and use taxes. Installments due in 2008 through 2010 were called in 2001. The remainder were called in Sports 2003. Core 875,000 - - 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 I of each year,secured by sales and use taxes. General 3,615,000 - 205,000 - 3,410,000 215,000 - 44 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) a. 6. LONG-TERM DEBT (Continued) Installment Contract Payable (Continued) Fund Debt Balance, Balance, Current Issue Retired by January I Issuances Retirements Refundings December 31 Portion General Fund Refunding Certificates,Series 2003 dated June 1,2003, interest at 1.50%to .•• 3.20%,due in annual installments ranging from $65,000 to$125,000 through December 1, 2012,interest payable June 1 and December 1 of each year,secured by sales Sports and use taxes. Core $ - $ 890,000 $ 65,000 $ - $ 825,000 $ 75,000 TOTAL $5,100,000 $ 890,000 $ 345,000 $ 875,000 $ 4,770,000 $ 370,000 �- 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, Current Issue Retired by January 1 Issuances Retirements December 31 Portion 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 of each year,secured by Sports equipment. Core $ 38,136 $ - $ 38,136 $ - $ - - 45 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 6. LONG-TERM DEBT (Continued) Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: r. Installment Contracts Installment Contracts Fiscal Year Payable from Payable from Enterprise Ending Governmental Activities Fund December 31, Principal Interest Principal Interest 2004 $ 215,000 $ 159,381 $ 155,000 $ 46,638 2005 225,000 149,438 160,000 41,531 2006 235,000 139,031 160,000 36,141 2007 250,000 128,162 165,000 30,751 - 2008 260,000 116,600 195,000 24,814 2009 275,000 104,575 200,000 17,730 2010 285,000 91,650 100,000 10,100 2011 300,000 78,255 100,000 7,100 2012 315,000 64,155 125,000 4,000 2013 330,000 49,350 - - 2014 350,000 33,840 - - 2015 370,000 17,390 - - TOTALS $ 3,410,000 $ 1,131,827 $ 1,360,000 $ 218,805 Change in Long-Term Liabilities During the fiscal year, the following changes occurred in long-term liabilities reported in the Governmental Activities: Balances January 1, Balances Current Restated Additions Reductions December 31 Portion Installment contracts payable $ 3,615,000 $ - $ 205,000 $ 3,410,000 $ 215,000 Compensated absences 780,894 33,140 - 814,034 700,151 Compensated absences Internal Service Fund 8,434 2,033 - 10,467 10,467 TOTAL GOVERNMENTAL ACTIVITIES $ 4,404,328 $ 35,173 $ 205,000 $ 4,234,501 $ 925,618 The compensated absences balance was restated as of January 1, 2003, for the implementation of GASB Interpretation No. 6 with an increase of$611,807 to remove compensated absences payable from governmental funds on the modified accrual basis. -46 - a VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) Advance Refundings- Installment Contracts Payable a On June 1, 2003, the Village issued$890,000 Series 2003 General Fund Refunding Certificates to refund the outstanding$875,000 Series 2000 General Fund Certificates. Through the refunding, the Village increased its debt service through the lengthening of its -- maturities by$102,955 and had an economic loss of$59,915. The $875,000 Series 2000 General Fund Certificates were paid in full on June 15, 2003. No amounts related to the 2000 issue remain to be paid at December 31, 2003. Legal Debt Margin .— 2002 assessed valuation(latest information available) $ 1,293,803,854 Legal debt limit- 8.625%of assessed valuation $ 111,590,582 Amount of debt applicable to debt limit 4,770,000 LEGAL DEBT MARGIN $ 106,820,582 7. INTERFUND ACCOUNTS Interfund receivable and payable balances as of December 31, 2003 are as follows: Due From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 933,352 Infrastructure Nonmajor Governmental 8,168 r.. TOTAL $ 941,520 The purpose of significant due to/due from other funds are as follows: $933,352 to fund the golf clubhouse expansion,pool deck replacement, engineering and subdivision expenses in Westchester Park, and Bath and Tennis Clubhouse expansion. This amount will be repaid when certain land parcels of the Sports Core are sold. Advance From/To Other Funds , Receivable Fund Payable Fund Amount General Sports Core $ 1,290,000 The purpose of this amount advanced to the Sports Core Fund from the General Fund is to fund capital projects and operating needs. - 47 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 7. INTERFUND ACCOUNTS (Continued) Interfund transfers during the year ended December 31, 2003 consisted of the following: '— Transfer Transfer In Out General $ 200,000 $ - Internal Service - 200,000 TOTAL $ 200,000 $ 200,000 The purposes of interfund transfers are as follows: $200,000 transfer from the Garage Fund to the General Fund, which represents surplus funds. This transfer will not be repaid. 8. 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 2004 $ 842,000 2005 842,000 2006 842,000 2007 842,000 2008 842,000 Thereafter 13,472,000 -- TOTAL $ 17,682,000 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. - 48 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. CONTINGENT LIABILITIES Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. 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. Municipal Infrastructure Maintenance Fees From January 1, 1998 through December 31, 2000, the Village imposed a municipal telecommunications infrastructure maintenance fee(IMF) on persons in the business of transmitting, supplying, or furnishing telecommunications and all associated services (e.g., telecommunications retailers) in Illinois for the "use of public right-of-ways". The fee was authorized by state statute(35 ILCS 635). In March 2001, a wireless telecommunications provider brought action against an Illinois government challenging the constitutionality of the municipal telecommunications infrastructure maintenance fee. The Illinois Supreme Court(Court) found the IMF to be unconstitutional as applied to wireless carriers. The .— Court's decision held upon appeal. Potential damages to the Village under this case precedent could aggregate the total of amounts remitted to the Village for IMF by all carriers during the period from January 1, 1998 through December 31, 2000. The Village has not estimated its liability under potential IMF lawsuits as of December 31, 2003. - 49 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. 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 IMRF as specified by statute. The employer contribution for the year ended December 31, 2003 was 7.07% of covered payroll. 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, 2003, the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 23 Terminated employees entitled to benefits but not yet receiving them - .� Current employees Vested 25 Nonvested 18 TOTAL 66 - 50 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) 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 I 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, 2003, the Village's contribution was 17.15% of covered payroll. A 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, 2003, the Firefighters' Pension Plan membership consisted of. Retirees and beneficiaries currently receiving benefits 31 Terminated employees entitled to benefits but not yet receiving them - Current employees Vested 20 '— Nonvested 12 TOTAL 63 - 51 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) 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, 2003, the Village's contribution was 23.13% of covered payroll. 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 Index Fund $ 4,116,632 $ 4,116,632 Firefighters' Pension Fidelity Dividend Growth Mutual Fund $ 1,498,471 Firefighters' Pension Vanguard Index Trust—500 Index Fund 1,102,230 ... Firefighters' Pension Vanguard Total Stock Mutual Fund 1,096,184 $ 3,696,885 - 52 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. DEFINED BENEFIT PENSION PLANS (Continued) 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, 2001 2003 2003 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, 30 Years, 30 Years, Closed Closed Closed (Overfunded) 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 - 53 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs (Continued) 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 2001 $ 359,653 2001 $ 271,765 $ 357,168 (APC) 2002 346,663 2002 338,565 417,022 2003 395,206 2003 483,197 481,887 Actual contribution 2001 $ 359,653 2001 $ 271,765 $ 357,168 2002 346,663 2002 338,565 417,022 2003 395,206 2003 483,197 481,887 Percentage of APC 2001 100.00% 2001 100.00% 100.00% contributed 2002 100.00 2002 100.00 100.00 2003 100.00 2003 100.00 100.00 i NPO (Asset) 2001 $ - 2001 $ - $ - 2002 - 2002 - - 2003 - 2003 - - 11. PRIOR PERIOD ADJUSTMENTS A prior period adjustment was recorded for a change in capitalization threshold and useful lives. This resulted in an increase (decrease) in net assets as follows: Water $ 2,007,069 Sports Core (246,986) Garage 8,445 Capital Replacement 138,513 In addition, the beginning balance of capital assets used in the operation of governmental funds was restated by$41,137,274. Also, a prior period adjustment was recorded in the General Fund to implement GASB Interpretation No. 6,Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. This resulted in an increase in fund balance of$611,807 in the General Fund. - 54 - REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) REVENUES Intergovernmental $ 10,816,900 $ 10,816,900 $ 10,583,318 $ (233,582) Utility taxes 3,515,000 3,515,000 3,427,393 (87,607) Licenses and permits 494,450 494,450 570,261 75,811 Charges for services 553,000 553,000 703,634 150,634 Fines and penalties 303,500 303,500 353,513 50,013 Investment income 240,000 240,000 118,411 (121,589) Donations 105,000 105,000 410,000 305,000 Miscellaneous 143,090 143,090 228,477 85,387 Total revenues 16,170,940 16,170,940 16,395,007 224,067 EXPENDITURES Current General government 7,175,345 6,841,645 5,921,350 (920,295) Public safety 9,233,920 9,567,620 9,488,880 (78,740) Public works 1,245,265 1,245,265 1,160,946 (84,319) -- Culture and recreation 1,238,170 1,238,170 1,165,118 (73,052) Total expenditures 18,892,700 18,892,700 17,736,294 (1,156,406) EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (2,721,760) (2,721,760) (1,341,287) 1,380,473 OTHER FINANCING SOURCES(USES) Transfers in 1,807,100 1,807,100 200,000 (1,607,100) Total other financing sources(uses) 1,807,100 1,807,100 200,000 (1,607,100) NET CHANGE IN FUND BALANCE $ (914,660) $ (914,660) (1,141,287) $ (226,627) FUND BALANCE,JANUARY 1 11,622,582 Prior period adjustment 611,807 FUND BALANCE,JANUARY 1,RESTATED 12,234,389 FUND BALANCE,DECEMBER 31 $ 11,093,102 (See independent auditor's report.) -55- VILLAGE OF OAK BROOK, ILLINOIS — NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2003 Budgets Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for the General, Special Revenue and Capital Projects Funds on the modified accrual basis, and Enterprise, Internal Service and Pension Trust Funds on the accrual basis and a current financial resources measurement focus. The annual budget is legally enacted and provides for a legal level of control at the program level. All annual appropriations lapse at fiscal year end. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 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. - 56 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION ... SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2003 (4) Unfunded ._ (2) (Overfunded) UAAL Actuarial Actuarial (OAAL) Accrued Accrued As a .� Actuarial (1) Liability (3) Liability Percentage Valuation Actuarial (AAL) Funded (UAAL) (5) of Covered Date Value of Entry Age Ratio (OAAL) Covered Payroll December 31, Assets Normal (1)/(2) (2) -(1) Payroll (4)/(5) 1998 $ 7,108,829 $ 6,882,205 103.29% $ (226,624) $ 3,777,360 (6.00%) 1999 8,117,918 7,701,764 105.40% (416,154) 4,129,559 (10.08%) 2000 9,739,416 8,934,915 109.00% (804,501) 4,636,007 (17.35°/x) 2001 10,663,509 9,939,211 107.29% (724,298) 4,967,579 (14.58%) 2002 11,189,319 11,194,278 99.96% 4,959 5,228,707 0.09% 2003 11,079,395 12,017,899 92.19% 938,504 5,589,904 16.79% (See independent auditor's report.) -57 - VILLAGE OF OAK BROOK,ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND December 31,2003 (2) UAAL Actuarial (4) As a Actuarial (1) Accrued (3) Unfunded Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets -Entry Age (1)/(2) (2)-(1) Payroll (4)/(5) 1998 $ 18,904,148 $ 17,216,822 109.80% $(1,687,326) $ 2,172,052 (77.68%) 1999 19,542,081 18,564,949 105.26% (977,132) 2,172,484 (44.98%) 2000 20,448,157 20,140,332 101.53% (307,825) 2,249,998 (13.68%) 2001 20,496,069 21,849,564 93.81% 1,353,495 2,616,001 51.74% 2002 20,521,085 23,581,098 87.02% 3,060,013 2,736,034 111.84% 2003 22,790,550 25,499,316 89.38% 2,708,766 2,854,299 94.90% ' r i (See independent auditor's report.) -58 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS'PENSION FUND December 31,2003 (4) UAAL (2) Unfunded (OAAL) _ Actuarial (Overfunded) As a Actuarial (1) Accrued (3) AAL Percentage Valuation Actuarial Liability Funded (UAAL) (5) of Covered Date Value of (AAL) Ratio (OAAL) Covered Payroll ._ December 31, Assets -Entry Age (1)/(2) (2)- (1) Payroll (4)/(5) 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% 2003 18,254,770 22,439,963 81.35% 4,185,193 2,156,811 194.05% (See independent auditor's report.) - 59- i VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND -' December 31, 2003 Annual Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 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% 2002 346,663 346,663 100.00% 2003 395,206 395,206 100.00% — (See independent auditor's report.) - 60 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND December 31, 2003 Annual Fiscal Pension Year Employer Cost Percentage December 31, Contributions (APC) Contributed 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% 2003 483,197 483,197 100.00% (See independent auditor's report.) - 61 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS' PENSION FUND December 31, 2003 Annual Fiscal Pension Year Employer Cost Percentage December 31, Contributions (APC) Contributed 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% 2003 481,887 481,887 100.00% i - (See independent auditor's report.) - - 62 - ON�IAJOR GOVERNMENTAL FUNDS NONMAJOR GOVERNMENTAL FUNDS Hotel/Motel Tax Fund-to account for local hotel/motel tax receipts restricted for promoting tourism and conventions.in the Village. Motor Fuel Tax Fund- to account for State Gasoline Tax Allocations restricted for local roadway program expenditures. Foreign Fire Insurance Tax Fund- to account for Foreign Fire Insurance tax revenue restricted for the purchase of items for the benefit of the fire department. VILLAGE OF OAK BROOK,ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31,2003 Special Revenue Funds Total Foreign Fire Nonmajor Hotel/Motel Motor Insurance Governmental Tax Fuel Tax Tax Funds ASSETS Cash and investments $ 317,037 $ 634,113 $ 106,546 $ 1,057,696 ... Receivables Allotments - 20,031 - 20,031 Accrued interest 219 334 - 553 _ Other,hotel/motel tax 28,339 - - 28,339 TOTAL ASSETS $ 345,595 $ 654,478 $ 106,546 $ 1,106,619 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 33,159 $ - $ 60 $ 33,219 Due to other funds - 8,168 - 8,168 Total liabilities 33,159 8,168 60 41,387 FUND BALANCES Reserved for maintenance of roadways - 646,310 - 646,310 Reserved for public safety - - 106,486 106,486 Reserved for culture and recreation 312,436 - - 312,436 Total fund balances 312,436 646,310 106,486 1,065,232 TOTAL LIABILITIES AND FUND BALANCES $ 345,595 $ 654,478 $ 106,546 $ 1,106,619 i (See independent auditor's report.) _ - 63 - VILLAGE OF OAK BROOK,ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES For the Year Ended December 31,2003 Special Revenue Funds Hotel/Motel Tax Motor Fuel Tax Foreign Fire Insurance Tax Total Variance Variance Variance Variance Original Final Over Original Final Over Original Final Over Original Final Over Budget Budget Actual (Under) Budget Budget Actual (Under) Budget Budget Actual (Under) Budget Budget Actual (Under) REVENUES Intergovernmental $ - $ - S - $` - S 251,500 $ 251,500 $ 246,969 $ (4,531) $ 39,000 $ 39,000 S 51,278 S 12,278 S 290,500 S 290,500 $ 298,247 $ 7,747 Hotel/motel taxes 347,000 347,000 306,365 (40,635) - - - - - - - - 347,000 347,000 306,365 (40,635) Investment income 10,000 10,000 5,356 (4,644) 8,000 8,000 9,361 1,361 1,500 1,500 398 (1,102) 19,500 19,500 15,115 (4,385) Total revenues 357,000 357,000 311,721 (45,279) 259,500 259,500 256,330 (3,170) 40,500 40,500 51,676 11,176 657,000 657,000 619,727 (37,273) EXPENDITURES Current Public safety - - - - - - - 46,000 49,600 48,574 (1,026) 46,000 49,600 48,574 (1,026) Public works - - - - 440,000 440,000 279,743 (160,257) - - - - 440,000 440,000 279,743 (160,257) Culture and recreation 404,700 404,700 389,488 (15,212) 404,700 404,700 389,488 (15,212) Total expenditures 404,700 404,700 389,488 (15,212) 440,000 440,000 279,743 (160,257) 46,000 49,600 48,574 (1,026) 890,700 894,300 717,805 (176,495) NET CHANGE IN FUND BALANCES $ (47,700) $ (47,700) (77,767) $ (30,067) $ (180,500) $ (180,500) (23,413) $ 157,087 $ (5,500) $ (9,100) 3,102 $ 12,202 $ (233,700) $ (237,300) (98,078) $ 139,222 FUND BALANCES,JANUARY 1 390,203 669,723 103,384 1,163,310 FUND BALANCES,DECEMBER 31 $ 312 336 $ 646,310 $ 106,486 $ 1,065,232 -64- INTERNAL SERVICE FUNDS Self-Insurance Fund- to account for all costs associated with self-insurance risks for employee health and dental insurance. Garage Fund- to account for all costs associated with the operation and maintenance of the Village's vehicle fleet equipment. Capital Replacement Fund- to account for revenues and expenditures relative to the replacement of major capital equipment, primarily vehicles. - VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS December 31, 2003 Self- Capital Insurance Garage Replacement Total - CURRENT ASSETS Cash and investments $ 584,997 $ 66,571 $ 2,774,047 $ 3,425,615 Receivables Accrued interest - - 1,042 1,042 Other - 22 - 22 _ Prepaid expenses - - 380,000 380,000 Inventories - 46,538 - 46,538 Total current assets 584,997 113,131 3,155,089 3,853,217 CAPITAL ASSETS Depreciable,net of '- accumulated depreciation - 15,177 1,804,415 1,819,592 Net capital assets - 15,177 1,804,415 1,819,592 Total assets 584,997 128,308 4,959,504 5,672,809 CURRENT LIABILITIES Accounts payable - 20,463 114,732 135,195 Accrued payroll - 9,895 - 9,895 _ Compensated absences payable - 10,467 - 10,467 Claims payable 225,800 - - 225,800 Total current liabilities 225,800 40,825 114,732 381,357 NET ASSETS Invested in capital assets net - of related debt - 15,177 1,804,415 1,819,592 Unreserved 359,197 72,306 3,040,357 3,471,860 TOTAL NET ASSETS $ 359,197 $ 87,483 $ 4,844,772 $ 5,291,452 (See independent auditor's report.) -65 - VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31,2003 Self- Capital Insurance Garage Replacement Total OPERATING REVENUES Charges for services $ 1,837,129 $ 469,100 $ 48,100 $ 2,354,329 Total operating revenues 1,837,129 469,100 48,100 2,354,329 OPERATING EXPENSES Claims and insurance 1,626,898 - - 1,626,898 Garage operations - 433,328 - 433,328 Miscellaneous - - 9,704 9,704 Depreciation - 7,346 302,300 309,646 Total operating expenses 1,626,898 440,674 312,004 2,379,576 OPERATING INCOME(LOSS) 210,231 28,426 (263,904) (25,247) NONOPERATING REVENUES(EXPENSES) Investment income 3,687 - 39,686 43,373 Gain on sale of capital assets - - 7,546 7,546 Total nonoperating revenues(expenses) 3,687 - 47,232 50,919 NET INCOME(LOSS)BEFORE OPERATING TRANSFERS 213,918 28,426 (216,672) 25,672 '- TRANSFERS (OUT) - (200,000) - (200,000) CHANGE IN NET ASSETS 213,918 (171,574) (216,672) (174,328) NET ASSETS,JANUARY 1 145,279 250,612 4,922,931 5,318,822 Prior period adjustment - 8,445 138,513 146,958 NET ASSETS,JANUARY 1,RESTATED 145,279 259,057 5,061,444 5,465,780 NET ASSETS,DECEMBER 31 $ 359,197 $ 87,483 $ 4,844,772 $ 5,291,452 (See independent auditor's report.) -66- VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31,2003 Self- Capital Insurance Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from internal services transactions $ 1,382,967 $ 469,108 $ 48,100 $ 1,900,175 Receipts from miscellaneous revenue 454,162 - - 454,162 Payments to suppliers (1,624,129) (299,396) (389,704) (2,313,229) Payments to employees - (160,889) - (160,889) Net cash from operating activities 213,000 8,823 (341,604) (119,781) CASH FLOWS FROM NON-CAPITAL ... FINANCING ACTIVITIES Utility taxes - 23,394 23,394 Transfers(out) - (200,000) - (200,000) Net cash from non-capital financing activities - (200,000) 23,394 (176,606) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets - (247,269) (247,269) Proceeds from sale of capital assets - - 11,603 11,603 Net cash from capital and related financing activities - - (235,666) (235,666) _ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments - - (29,898) (29,898) Sale of investments - 118,441 - 118,441 Interest received 3,687 1,043 46,759 51,489 Net cash from investing activities 3,687 119,484 16,861 140,032 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 216,687 (71,693) (537,015) (392,021) CASH AND CASH EQUIVALENTS, -' JANUARY 1 368,310 138,264 2,274,571 2,781,145 CASH AND CASH EQUIVALENTS, - DECEMBER 31 $ 584,997 $ 66,571 $ 1,737,556 $ 2,389,124 CASH AND INVESTMENTS Cash and cash equivalents $ 584,997 $ 66,571. $ 1,737,556 $ 2,389,124 Investments - - 1,036,491 1,036,491 TOTAL CASH AND INVESTMENTS $ 584,997 $ 66,571 $ 2,774,047 $ 3,425,615 NONCASH TRANSACTIONS Fixed assets included in accounts payable $ - $ - $ 114,732 $ 114,732 Unrealized gain(loss)on investments - (700) (5,205) (5,905) TOTAL NONCASH TRANSACTIONS $ - $ (700) $ 109,527 $ 108,827 (This statement is continued on the following page.) -67- VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS(Continued) For the Year Ended December 31,2003 Self Capital Insurance Garage Replacement Total RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ 210,231 $ 28,426 $ (263,904) $ (25,247) Depreciation - 7,346 302,300 309,646 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable - 8 - 8 Prepaid expenses - - (380,000) (380,000) Inventories - (8,327) - (8,327) Accounts payable - (18,779) - (18,779) Accrued payroll and compensated absences - 149 - 149 Claims payable 2,769 - - 2,769 NET CASH FROM OPERATING ACTIVITIES $ 213,000 $ 8,823 $ (341,604) L__(119,781) (See independent auditor's report.) -68- VILLAGE OF OAK BROOK,ILLINOIS SELF-INSURANCE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) OPERATING REVENUES Charges for services $ 1,802,200 $ 1,802,200 $ 1,837,129 $ 34,929 Total operating revenues 1,802,200 1,802,200 1,837,129 34,929 OPERATING EXPENSES Claims and insurance Insurance and administration 253,100 253,100 264,905 11,805 Health claims 1,360,000 1,360,000 1,229,041 (130,959) _ Dental claims 131,250 131,250 132,952 1,702 Total operating expenses 1,744,350 1,744,350 1,626,898 (117,452) OPERATING INCOME 57,850 57,850 210,231 152,381 NONOPERATING REVENUES(EXPENSES) Investment income 4,000 4,000 3,687 (313) Total nonoperating revenues(expenses) 4,000 4,000 3,687 (313) CHANGE IN NET ASSETS $ 61,850 $ 61,850 213,918 $ 152,068 NET ASSETS,JANUARY 1 145,279 NET ASSETS,DECEMBER 31 $ 359,197 (See independent auditor's report.) -69- VILLAGE OF OAK BROOK,ILLINOIS GARAGE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) '- OPERATING REVENUES Charges for services $ 469,100 $ 469,100 $ 469,100 $ - Total operating revenues 469,100 469,100 469,100 - OPERATING EXPENSES EXCLUDING DEPRECIATION Garage operations Personnel 164,675 164,675 161,038 (3,637) Materials and supplies 116,535 116,535 110,644 (5,891) Operations and contractual 122,140 137,740 160,713 22,973 Capital outlay - - 933 933 Total operating expenses excluding depreciation 403,350 418,950 433,328 14,378 OPERATING INCOME 65,750 50,150 35,772 14,378 NONOPERATING REVENUES(EXPENSES) Investment income 5,000 5,000 - (5,000) Total nonoperating revenues(expenses) 5,000 5,000 - (5,000) NET INCOME BEFORE TRANSFERS 70,750 55,150 35,772 (19,378) TRANSFERS(OUT) (221,600) (221,600) (200,000) 21,600 CHANGE IN NET ASSETS- BUDGETARY BASIS $ 150,850 $ 166,450 (164,228) $ 2,222 ADJUSTMENTS TO GAAP BASIS Depreciation expense (7,346) Total adjustments to GAAP basis (7,346) CHANGE IN NET ASSETS-GAAP BASIS (171,574) NET ASSETS,JANUARY 1 250,612 Prior period adjustment 8,445 NET ASSETS,JANUARY 1,RESTATED 259,057 NET ASSETS,DECEMBER 31 $ 87,483 (See independent auditor's report.) -70- VILLAGE OF OAK BROOK,ILLINOIS CAPITAL REPLACEMENT FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL .,. For the Year Ended December 31,2003 Variance Original Final Over —• Budget Budget Actual (Under) OPERATING REVENUES Charges for services $ 48,100 $ 48,100 $ 48,100 $ - Total operating revenues 48,100 48,100 48,100 - OPERATING EXPENSES EXCLUDING DEPRECIATION Capital outlay 1,076,870 1,076,870 371,705 (705,165) Total operating expenses excluding depreciation 1,076,870 1,076,870 371,705 (705,165) OPERATING INCOME(LOSS) (1,028,770) (1,028,770) (323,605) (705,165) NONOPERATING REVENUES(EXPENSES) _ Investment income 82,000 82,000 39,686 (42,314) Gain on sale of fixed assets 15,000 15,000 7,546 (7,454) Total nonoperating revenues(expenses) 97,000 97,000 47,232 (49,768) CHANGE IN NET ASSETS- BUDGETARY BASIS $ (931,770) $ (931,770) (276,373) $ 655,397 ADJUSTMENTS TO GAAP BASIS Capital expenditures 362,001 Depreciation expense (302,300) Total adjustments to GAAP basis 59,701 CHANGE IN NET ASSETS-GAAP BASIS (216,672) NET ASSETS,JANUARY 1 4,922,931 Prior period adjustment 138,513 NET ASSETS,JANUARY 1,RESTATED 5,061,444 NET ASSETS,DECEMBER 31 $ 4,844,772 (See independent auditor's report.) -71 - r r r r .ter sauna Axvlanald r r r r r 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 FIDUCIARY FUNDS COMBINING STATEMENT OF PLAN NET ASSETS -. December 31, 2003 Pension Trust Police Firefighters' Pension Pension Total ASSETS Cash $ 313,259 $ 124,055 $ 437,314 Investments Illinois Funds 23,772 315,971 339,743 Certificates of Deposit 100,928 200,000 300,928 U.S. Treasury Securities 3,617,720 1,496,001 5,113,721 U.S. Agency Securities 8,810,571 6,895,921 15,706,492 _ State and Local Obligations 1,244,722 - 1,244,722 Mutual Funds 8,537,601 8,514,347 17,051,948 Insurance Contracts - 609,898 609,898 Accrued interest receivable 141,978 109,932 251,910 Total assets 22,790,551 18,266,125 41,056,676 LIABILITIES Accounts payable - 11,354 11,354 Total liabilities - 11,354 11,354 NET ASSETS HELD IN TRUST FOR PENSION PLAN BENEFITS $ 22,790,551 $ 18,254,771 $ 41,045,322 ._ (See independent auditor's report.) - - 72 - VILLAGE OF OAK BROOK, ILLINOIS FIDUCIARY FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS For the Year Ended December 31, 2003 Pension Trust Police Firefighter's Pension Pension Total ADDITIONS Contributions Employer contributions $ 483,197 $ 481,887 $ 965,084 Employee contributions 279,774 176,151 455,925 Total contributions 762,971 658,038 1,421,009 Investment income Net appreciation in -- fair value of investments 1,783,951 2,066,820 3,850,771 Interest 667,809 316,352 984,161 '— Total investment income 2,451,760 2,383,172 4,834,932 Less investment expense (36,844) (44,798) (81,642) Net investment income 2,414,916 2,338,374 4,753,290 Total additions 3,177,887 2,996,412 6,174,299 DEDUCTIONS Benefits and refunds 883,057 945,914 1,828,971 Administrative 25,364 36,344 61,708 Total deductions 908,421 982,258 1,890,679 NET INCREASE 2,269,466 2,014,154 4,283,620 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,521,085 16,240,617 36,761,702 December 31 $ 22,790,551 $ 18,254,771 $ 41,045,322 (See independent auditor's report.) 4 - 73 - VILLAGE OF OAK BROOK,ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance _ Original Final Over Budget Budget Actual (Under) ADDITIONS Contributions Employer contributions $ 411,350 $ 411,350 $ 483,197 $ 71,847 Employee contributions 258,825 258,825 279,774 20,949 Total contributions 670,175 670,175 762,971 92,796 Investment income Net appreciation in fair value of investments - - 1,783,951 1,783,951 Interest 1,537,500 1,537,500 667,809 (869,691) Total investment income 1,537,500 1,537,500 2,451,760 914,260 Less investment expense (37,000) (37,000) (36,844) 156 Net investment income 1,500,500 1,500,500 2,414,916 914,416 Total additions 2,170,675 2,170,675 3,177,887 1,007,212 DEDUCTIONS Benefits and refunds- 865,000 879,100 883,057 3,957 Administrative 29,200 29,200 25,364 (3,836) Total deductions 894,200 908,300 908,421 121 _ NET INCREASE $ 1,276,475 $ 1,262,375 2,269,466 $ 1,007,091 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,521,085 December 31 $ 22,790,551 (See independent auditor's report.) -74- VILLAGE OF OAK BROOK,ILLINOIS FIREFIGHTERS'PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) ADDITIONS Contributions Employer contributions $ 468,485 $ 468,485 $ 481,887 $ 13,402 Employee contributions 181,000 181,000 176,151 (4,849) Tota] contributions 649,485 649,485 658,038 8,553 Investment income Net appreciation in fair value of investments - - 2,066,820 2,066,820 Interest 1,218,750 1,218,750 316,352 (902,398) Total investment income 1,218,750 1,218,750 2,383,172 1,164,422 Less investment expense (45,000) (45,000) (44,798) 202 Net investment income 1,173,750 1,173,750 2,338,374 1,164,624 Total additions 1,823,235 1,823,235 2,996,412 1,173,177 DEDUCTIONS Benefits and refunds 940,800 948,900 945,914 (2,986) Administrative 33,200 33,200 36,344 3,144 Total deductions 974,000 982,100 982,258 158 NET INCREASE $ 849,235 $ 841,135 2,014,154 $ 1,173,019 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 16,240,617 December 31 $ 18,254,771 (See independent auditor's report.) -75 - LONGTERM DEBT PAYABLE BY GOVERNMENTAL FUNDS LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS To account for the noncurrent portion of the Village's compensated absences and installment contract payable from Governmental Funds. VILLAGE OF OAK BROOK, ILLINOIS LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS SCHEDULE OF GENERAL LONG-TERM DEBT December 31, 2003 Compensated Installment _ Absences Contract Totals AMOUNT AVAILABLE AND TO BE PROVIDED FORTHERETIREMENT OF GENERAL LONG-TERM DEBT Amount available for debt service $ - $ - $ - Amount to be provided for retirement of general long-term debt 814,034 3,410,000 4,224,034 TOTAL $ 814,034 $ 3,410,000 $ 4,224,034 GENERAL LONG-TERM DEBT PAYABLE Compensated absences $ 814,034 $ - $ 814,034 Installment contract payable - 3,410,000 3,410,000 TOTAL $ 814,034 $ 3,410,000 $ 4,224,034 (See independent auditor's report.) -76 - vivo IVINHWUZaans VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) REVENUES Intergovernmental Municipal sales tax $ 9,875,000 $ 9,875,000 $ 9,749,858 $ (125,142) Illinois state income and use tax 709,700 709,700 614,678 (95,022) Corporate personal property replacement taxes 172,200 172,200 167,291 (4,909) York Township road and bridge tax 60,000 60,000 49,682 (10,318) Grants - - 1,809 1,809 Total intergovernmental 10,816,900 10,816,900 10,583,318 (233,582) Utility taxes 3,515,000 3,515,000 3,427,393 (87,607) Licenses and permits 494,450 494,450 570,261 75,811 Charges for services 553,000 553,000 703,634 150,634 Fines and penalties 303,500 303,500 353,513 50,013 Investment income 240,000 240,000 118,411 (121,589) Donations 105,000 105,000 410,000 305,000 Miscellaneous Franchise/infrastructure maintenance fees 15,200 15,200 66,421 51,221 Other 127,890 127,890 162,056 34,166 Total miscellaneous 143,090 143,090 228,477 85,387 TOTAL REVENUES $ 16,170,940 $ 16,170,940 $ 16,395,007 $ 224,067 (See independent auditor's report.) -77- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) GENERAL GOVERNMENT Legislative and general management Board of trustees -. Personnel $ 77,620 $ 77,620 $ 73,160 $ (4,460) Materials and supplies 1,075 1,075 2,284 1,209 Operation and contractual 169,660 80,110 62,947 (17,163) Total board of trustees 248,355 158,805 138,391 (20,414) Village clerk Personnel 151,970 151,970 139,836 (12,134) Materials and supplies 2,340 2,340 2,920 580 Operation and contractual 24,875 24,875 25,721 846 Total Village clerk 179,185 179,185 168,477 (10,708) Legal _ Personnel 130,335 130,335 123,331 (7,004) Materials and supplies 4,200 4,200 1,065 (3,135) Operation and contractual 150,360 150,360 129,520 (20,840) Total legal 284,895 284,895 253,916 (30,979) General management Personnel 292,535 292,535 257,211 (35,324) Materials and supplies 2,050 2,050 1,774 (276) Operation and contractual 7,345 7,345 9,562 2,217 - - 23,900 23,900 _ Total general management 301,930 301,930 292,447 (9,483) Human resources ... Personnel 83,125 83,125 69,587 (13,538) Materials and supplies 1,550 1,550 2,166 616 Operation and contractual 95,700 108,550 121,455 12,905 _ Total human resources 180,375 193,225 193,208 (17) Risk management -� Personnel 52,565 52,565 37,342 (15,223) Operation and contractual 430,490 457,990 473,179 15,189 Total risk management 483,055 510,555 510,521 (34) (This schedule is continued on the following pages.) -78- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance - Original Final Over Budget Budget Actual (Under) _ GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) Emergency management Personnel $ 7,550 $ 7,550 $ 2,199 $ (5,351) Materials and supplies 3,550 3,550 2,092 (1,458) Operation and contractual 3,100 3,100 40 (3,060) 6,000 6,000 2,431 (3,569) Total emergency management 20,200 20,200 6,762 (13,438) General services Personnel 58,875 58,875 60,177 1,302 Materials and supplies 62,400 62,400 55,872 (6,528) Operation and contractual 204,830 211,930 211,540 (390) Capital 20,000 20,000 25,605 5,605 Total general services 346,105 353,205 353,194 (11) Purchasing Personnel 118,425 118,425 117,109 (1,316) Materials and supplies 1,390 1,390 1,342 (48) Operation and contractual 670 670 818 148 Total purchasing 120,485 120,485 119,269 (1,216) Information systems Personnel 325,525 325,525 318,065 (7,460) Materials and supplies 9,085 9,085 17,310 8,225 Operation and contractual 76,530 76,530 71,714 (4,816) Capital 175,000 147,100 107,879 (39,221) Total information systems 586,140 558,240 514,968 (43,272) Village communications center Personnel 608,620 631,420 636,513 5,093 Materials and supplies 11,750 11,750 11,544 (206) Operation and contractual 29,290 29,290 24,412 (4,878) Capital 7,500 35,400 35,364 (36) Total Village communications center 657,160 707,860 707,833 (27) Community events Operation and contractual 128,000 147,300 147,208 (92) Total community events 128,000 147,300 147,208 (92) Total legislative and general management 3,535,885 3,535,885 3,406,194 (129,691) (This schedule is continued on the following pages.) -79- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) GENERAL GOVERNMENT(Continued) Community development management Personnel $ 202,890 $ 202,890 $ 205,312 $ 2,422 Materials and supplies 1,100 1,100 895 (205) Operation and contractual 3,100 3,100 216 (2,884) Total community development management 207,090 207,090 206,423 (667) _ Code enforcement Personnel 251,250 266,650 272,548 5,898 Materials and supplies 1,800 1,800 1,488 (312) "- Operation and contractual 40,285 40,285 34,665 (5,620) Total code enforcement 293,335 308,735 308,701 (34) ... Total community development 500,425 515,825 515,124 (701) Financial services Financial services management Personnel 132,255 132,255 133,486 1,231 Materials and supplies 2,925 2,925 3,135 210 Operation and contractual 29,600 33,700 32,215 (1,485) Total financial services management 164,780 168,880 168,836 (44) Accounting and reporting Personnel 317,225 317,225 315,778 (1,447) Materials and supplies 9,270 9,270 5,998 (3,272) Operation and contractual 44,220 40,120 31,862 (8,258) Capital 10,000 10,000 - (10,000) Total accounting and reporting 380,715 376,615 353,638 (22,977) Debt service Operation and contractual 374,465 374,465 374,463 (2) Total debt service 374,465 374,465 374,463 (2) Total financial services 919,960 919,960 896,937 (23,023) Engineering and capital projects Engineering Personnel 353,815 353,815 337,027 (16,788) Materials and supplies 1,905 1,905 1,948 43 Operation and contractual 49,555 49,555 14,780 (34,775) Total engineering 405,275 405,275 353,755 (51,520) (This schedule is continued on the following pages.) -80- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance �- Original Final Over Budget Budget Actual (Under) GENERAL GOVERNMENT(Continued) '- Municipal building improvements Operation and contractual $ 13,000 $ 13,000 $ 8,673 $ (4,327) Capital 413,000 55,500 57,964 2,464 Total municipal building improvements 426,000 68,500 66,637 (1,863) Library building project Operation and contractual - - 2,643 2,643 Capital 30,000 38,400 35,673 (2,727) Total library building project 30,000 38,400 38,316 (84) Municipal complex project Operation and contractual 35,000 35,000 37,025 2,025 _ Capital 1,375,000 1,375,000 659,562 (715,438) Total municipal complex project 1,410,000 1,410,000 696,587 (713,413) Total engineering and capital projects 2,271,275 1,922,175 1,155,295 (766,880) Reimbursement of Sports Core expenditures 145,800 145,800 145,800 - Subtotal general government 7,373,345 7,039,645 6,119,350 (920,295) Less reimbursements from other funds (198,000) (198,000) (198,000) - Total general government 7,175,345 6,841,645 5,921,350 (920,295) PUBLIC SAFETY Police Department Police services management Personnel 460,305 472,005 475,504 3,499 Materials and supplies 4,500 4,500 3,268 (1,232) Operation and contractual 48,945 48,945 46,591 (2,354) Capital - - - - Total police services management 513,750 525,450 525,363 (87) Police field services _ Personnel 2,660,265 2,955,265 2,979,742 24,477 Materials and supplies 48,050 48,050 48,304 254 Operation and contractual 203,985 203,985 190,354 (13,631) Capital 162,500 162,500 150,980 (11,520) Total police field services 3,074,800 3,369,800 3,369,380 (420) (This schedule is continued on the following pages.) -81 - VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) _ PUBLIC SAFETY(Continued) Police Department(Continued) Police general support Personnel $ 259,495 $ 263,895 $ 265,480 $ 1,585 Materials and supplies 16,450 16,450 16,181 (269) Operation and contractual 2,450 2,450 1,088 (1,362) Total police general support 278,395 282,795 282,749 (46) Police investigations Personnel 655,745 558,145 548,276 (9,869) Materials and supplies 9,200 9,200 6,735 (2,465) Operation and contractual 23,360 23,360 27,149 3,789 Total police investigations 688,305 590,705 582,160 (8,545) Police records _ Personnel 136,425 139,625 139,755 130 Materials and supplies 5,600 5,600 5,141 (459) Operation and contractual 4,800 4,800 5,066 266 Total police records 146,825 150,025 149,962 (63) Public relations/crime prevention Personnel 146,375 146,375 145,097 (1,278) Materials and supplies 3,300 3,300 1,580 (1,720) Operation and contractual 6,360 6,360 7,883 1,523 Total public relations/crime prevention 156,035 156,035 154,560 (1,475) Total police department 4,858,110 5,074,810 5,064,174 (10,636) Fire Fire and EMS general salaries Personnel 3,015,925 3,132,925 3,132,676 (249) i Total fire and EMS general salaries 3,015,925 3,132,925 3,132,676 (249) Fire service management Personnel 329,925 315,625 303,508 (12,117) Materials and supplies 3,500 3,500 3,152 (348) Operation and contractual 5,590 5,590 7,669 2,079 _ Total fire service management 339,015 324,715 314,329 (10,386) (This schedule is continued on the following pages.) -82- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance .- Original Final Over Budget Budget Actual (Under) PUBLIC SAFETY(Continued) Fire(Continued) Rescue and fire operation Personnel $ 3,480 $ 3,480 $ 4,931 $ 1,451 Materials and supplies 63,575 63,575 73,176 9,601 Operation and contractual 90,675 104,975 103,760 (1,215) Capital 58,000 58,000 48,143 (9,857) Total rescue and fire operation 215,730 230,030 230,010 (20) Special teams operations _ Personnel 130 130 29 (101) Materials and supplies 22,500 22,500 6,423 (16,077) Operation and contractual 4,810 4,810 5,046 236 Capital - - - - Total special teams operations 27,440 27,440 11,498 (15,942) Rescue and fire training '- Personnel 40,075 40,075 32,504 (7,571) Materials and supplies 2,960 2,960 752 (2,208) Operation and contractual 150 150 - (150) Total rescue and fire training 43,185 43,185 33,256 (9,929) Emergency medical services Personnel 45,010 45,010 42,231 (2,779) Materials and supplies 11,895 11,895 12,421 526 Operation and contractual 393,500 393,500 394,948 1,448 Capital 60,000 60,000 59,913 (87) Total emergency medical services 510,405 510,405 509,513 (892) Prevention and public education Personnel 206,105 206,105 149,949 (56,156) Materials and supplies 4,015 4,015 3,792 (223) Operation and contractual 13,990 13,990 39,683 25,693 Total prevention and public education 224,110 224,110 193,424 (30,686) Total fire 4,375,810 4,492,810 4,424,706 (68,104) Total public safety 9,233,920 9,567,620 9,488,880 (78,740) (This schedule is continued on the following pages.) -83- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) PUBLIC WORKS Public works management Personnel $ 289,775 $ 289,775 $ 289,241 $ (534) Materials and supplies 4,095 4,095 1,553 (2,542) Operation and contractual 12,015 12,015 10,544 (1,471) Total public works management 305,885 305,885 301,338 (4,547) Mosquito control Operation and contractual 70,975 70,975 61,332 (9,643) Total mosquito control 70,975 70,975 61,332 (9,643) Buildings and grounds Personnel 71,915 71,915 72,365 450 Materials and supplies 31,340 31,340 27,329 (4,011) Operation and contractual 186,580 186,580 174,809 (11,771) Capital - - - - Total buildings and grounds 289,835 289,835 274,503 (15,332) Streets-general salaries Personnel 560,305 560,305 554,949 (5,356) Materials and supplies 5,550 5,550 3,047 (2,503) Operation and contractual 4,865 4,865 2,330 (2,535) Total streets-general salaries 570,720 570,720 560,326 (10,394) Snow removal Personnel 45,970 45,970 31,621 (14,349) Materials and supplies 47,495 47,495 28,491 (19,004) Operation and contractual 34,285 34,285 23,235 (11,050) -- Total snow removal 127,750 127,750 83,347 (44,403) Subtotal public works 1,365,165 1,365,165 1,280,846 (84,319) Less reimbursements from other funds (119,900) (119,900) (119,900) - Total public works 1,245,265 1,245,265 1,160,946 (84,319) (This schedule is continued on the following page.) -84- VILLAGE OF OAK BROOK,ILLINOIS GENERALFUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) CULTURE AND RECREATION Library general operations Personnel $ 369,275 $ 369,275 $ 353,222 $ (16,053) Materials and supplies 29,665 29,665 25,408 (4,257) Operation and contractual 153,930 153,930 126,223 (27,707) Capital 15,000 15,000 13,319 (1,681) Total library general operations 567,870 567,870 518,172 (49,698) Library technical services Personnel 143,845 143,845 139,703 (4,142) Materials and supplies 6,450 6,450 6,409 (41) Operation and contractual 8,000 8,000 7,791 (209) Total library technical services 158,295 158,295 153,903 (4,392) Library reference and adult services Personnel 148,885 148,885 136,685 (12,200) Materials and supplies 130,000 130,000 131,030 1,030 Operation and contractual 10,000 10,000 5,829 (4,171) Total library reference and adult services 288,885 288,885 273,544 (15,341) Library youth services Personnel 161,895 161,895 159,364 (2,531) Materials and supplies 54,500 54,500 53,431 (1,069) Operation and contractual 6,725 6,725 6,704 (21) Total library youth services 223,120 223,120 219,499 (3,621) Total culture and recreation 1,238,170 1,238,170 1,165,118 (73,052) TOTAL EXPENDITURES $ 18,892,700 $ 18,892,700 $ 17,736,294 $ (1,156,406) (See independent auditor's report.) -85- VILLAGE OF OAK BROOK,ILLINOIS INFRASTRUCTURE FUND SCHEDULE OF REVENUES,EXPENDITURES AND _ CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance i Original Final Over Budget Budget Actual (Under) REVENUES Intergovernmental-grants $ 414,000 $ 414,000 $ 62,201 $ (351,799) Utility taxes 1,102,000 1,102,000 1,072,715 (29,285) i Investment income 72,000 72,000 24,956 (47,044) Total revenues 1,588,000 1,588,000 1,159,872 (428,128) i EXPENDITURES Current Public works 602,490 602,490 466,259 (136,231) Capital outlay 1,068,500 1,068,500 404,305 (664,195) Total expenditures 1,670,990 1,670,990 870,564 (800,426) NET CHANGE IN FUND BALANCE $ (82,990) $ (82,990) 289,308 $ 372,298 i FUND BALANCE,JANUARY 1 2,027,275 i FUND BALANCE,DECEMBER 31 $ 2,316,583 (See independent auditor's report.) i - 86- �. VILLAGE OF OAK BROOK,ILLINOIS WATERWORKS SYSTEM FUND s SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) OPERATING REVENUES Charges for services Water sales $ 3,850,000 $ 3,850,000 $ 3,567,471 $ (282,529) Unmetered sales 15,000 15,000 28,953 13,953 Water tap on charges 40,000 40,000 64,930 24,930 Meter fees and special services 43,000 43,000 24,779 (18,221) Miscellaneous 58,750 58,750 68,226 9,476 Total operating revenues 4,006,750 4,006,750 3,754,359 (252,391) OPERATING EXPENSES Operation of facilities 5,634,660 5,634,660 4,947,282 (687,378) Depreciation and amortization - - 430,460 430,460 Total operating expenses 5,634,660 5,634,660 5,377,742 (256,918) e OPERATING INCOME(LOSS) (1,627,910) (1,627,910) (1,623,383) 4,527 NONOPERATING REVENUES(EXPENSES) Investment income 90,000 90,000 48,868 (41,132) Loss on sale of fixed assets - - (5,283) (5,283) Total nonoperating revenues(expenses) 90,000 90,000 43,585 (46,415) T CHANGE IN NET ASSETS $ (1,537,910) $ (1,537,910) (1,579,798) $ (41,888) NET ASSETS,JANUARY 1 15,596,058 Prior period adjustment 2,007,069 NET ASSETS,JANUARY 1,RESTATED 17,603,127 NET ASSETS,DECEMBER 31 $ 16,023,329 (See independent auditor's report.) -87- VILLAGE OF OAK BROOK,ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over r Budget Budget Actual (Under) OPERATING EXPENSES EXCLUDING DEPRECIATION Operation of facilities Public works-water operations Personnel $ 507,450 $ 507,450 $ 529,544 $ 22,094 Materials and supplies 90,855 90,855 80,270 (10,585) Operation and contractual 4,140,855 4,175,855 4,127,912 (47,943) Reimbursements for general fund services 286,000 286,000 286,000 - r Total public works-water operations 5,025,160 5,060,160 5,023,726 (36,434) Capital improvements -• Capital outlay 609,500 574,500 58,576 (515,924) Total capital improvements 609,500 574,500 58,576 (515,924) TOTAL OPERATING EXPENSES EXCLUDING DEPRECIATION-BUDGETARY BASIS $ 5,634,660 $ 5,634,660 5,082,302 $ (552,358) ADJUSTMENTS TO GAAP BASIS Capital expenditures (135,020) Depreciation expense 361,600 Amortization expense 68,860 Total adjustments to GAAP basis 295,440 TOTAL OPERATING EXPENSES $ 5,377,742 (See independent auditor's report.) -88- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND w SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over -- Budget Budget Actual (Under) OPERATING REVENUES Charges for services Golf $ 2,122,205 $ 2,122,205 $ 2,063,144 $ (59,061) Bath and tennis 340,920 340,920 303,701 (37,219) Food and beverage 1,438,650 1,438,650 1,191,116 (247,534) Total operating revenues 3,901,775 3,901,775 3,557,961 (343,814) OPERATING EXPENSES Golf club 1,452,645 1,483,445 1,352,858 (130,587) Bath and tennis 970,870 1,002,870 797,040 (205,830) ._ Food and beverage 1,273,525 1,273,525 1,292,830 19,305 Depreciation - - 240,689 240,689 Total operating expenses 3,697,040 3,759,840 3,683,417 (76,423) OPERATING INCOME(LOSS) 204,735 141,935 (125,456) (267,391) NONOPERATING REVENUES(EXPENSES) Investment income 13,000 13,000 2,653 (10,347) Interest expense (286,955) (286,955) (55,768) 231,187 Gain on sale of fixed assets 1,800,000 1,800,000 621,753 (1,178,247) Total nonoperating revenues(expenses) 1,526,045 1,526,045 568,638 (957,407) INCOME BEFORE TRANSFERS 1,730,780 1,667,980 443,182 (1,224,798) TRANSFERS IN(OUT) Transfers in 145,800 145,800 - (145,800) Transfers(out) (1,607,100) (1,544,300) - 1,544,300 Total transfers in(out) (1,461,300) (1,398,500) - 1,398,500 CHANGE IN NET ASSETS $ 269,480 $ 269,480 443,182 $ 173,702 } NET ASSETS,JANUARY 1 10,102,570 Prior period adjustment (246,986) NET ASSETS,JANUARY 1,RESTATED 9,855,584 NET ASSETS,DECEMBER 31 $ 10,298,766 (See independent auditor's report.) -89- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING REVENUES -BUDGET AND ACTUAL _ For the Year Ended December 31, 2003 Variance Original Final Over Budget Budget Actual (Under) CHARGES FOR SERVICES Golf Fees $ 1,522,850 $ 1,522,850 $ 1,500,807 $ (22,043) .� Golf surcharge 70,500 70,500 68,507 (1,993) Memberships 336,425 336,425 295,553 (40,872) Merchandise sales 183,750 183,750 191,321 7,571 Miscellaneous 8,680 8,680 6,956 (1,724) Total golf 2,122,205 2,122,205 2,063,144 (59,061) Bath and tennis Fees 111,600 111,600 111,277 (323) Memberships 208,940 208,940 177,005 (31,935) Merchandise sales 3,400 3,400 3,861 461 Miscellaneous 16,980 16,980 11,558 (5,422) Total bath and tennis 340,920 340,920 303,701 (37,219) Food and beverage Food sales 941,200 941,200 761,357 (179,843) Beverage sales 388,700 388,700 341,908 (46,792) Miscellaneous 108,750 108,750 87,851 (20,899) Total food and beverage 1,438,650 1,438,650 1,191,116 (247,534) TOTAL OPERATING REVENUES $ 3,901,775 $ 3,901,775 $ 3,557,961 $ (343,814) (See independent auditor's report.) -90- (This pale is intentionally left blank.) w VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) OPERATING EXPENSES EXCLUDING DEPRECIATION Operations-golf club Golf club general operations Personnel $ 389,360 $ 389,360 $ 371,802 $ (17,558) Materials and supplies 186,300 186,300 191,366 5,066 Operation and contractual 163,810 171,710 184,154 12,444 Total golf club general operations 739,470 747,370 747,322 (48) Golf club range operations Personnel 43,925 59,525 61,779 2,254 Materials and supplies 14,500 14,500 13,845 (655) Operation and contractual 7,300 13,200 12,335 (865) Total golf club range operations 65,725 87,225 87,959 734 Golf cart operations Personnel 23,685 25,085 25,135 50 Materials and supplies 1,400 1,400 1,460 60 Operation and contractual 41,730 41,730 3,445 (38,285) Total golf cart operations 66,815 68,215 30,040 (38,175) Golf course maintenance Personnel 418,535 418,535 410,021 (8,514) Materials and supplies 131,150 131,150 44,344 (86,806) Operation and contractual 30,950 30,950 33,172 2,222 r Total golf course maintenance 580,635 580,635 487,537 (93,098) Total operations-golf club 1,452,645 1,483,445 1,352,858 (130,587) Operations-bath and tennis Sports Core general operations Personnel 374,980 374,980 296,258 (78,722) ._ Materials and supplies 28,400 28,400 36,099 7,699 Operation and contractual 133,890 133,890 156,982 23,092 Total Sports Core general operations 537,270 537,270 489,339 (47,931) (This schedule is continued on the following page.) -91 - VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2003 Variance Original Final Over Budget Budget Actual (Under) OPERATING EXPENSES EXCLUDING DEPRECIATION(Continued) Operations-bath and tennis(Continued) _. Swimming operations Personnel $ 97,530 $ 129,530 $ 132,872 $ 3,342 Materials and supplies 16,700 16,700 16,435 (265) Operation and contractual 26,475 26,475 25,542 (933) Total swimming operations 140,705 172,705 174,849 2,144 Tennis operations-outdoor Personnel 75,895 75,895 82,787 6,892 Materials and supplies 10,000 10,000 7,880 (2,120) ,.. Operation and contractual 14,000 14,000 18,301 4,301 Total tennis operations-outdoor 99,895 99,895 108,968 9,073 Total operations-bath and tennis 777,870 809,870 773,156 (36,714) Food and beverage Personnel 634,925 634,925 600,429 (34,496) Materials and supplies 479,000 479,000 513,158 34,158 Operation and contractual 159,600 159,600 179,243 19,643 Total food and beverage 1,273,525 1,273,525 1,292,830 19,305 Capital outlay 193,000 193,000 76,390 (116,610) TOTAL OPERATING EXPENSES- BUDGETARY BASIS $ 3,697,040 $ 3,759,840 3,495,234 $ (264,606) ADJUSTMENTS TO GAAP BASIS Capital expenditures (52,506) Depreciation expense 240,689 Total adjustments to GAAP basis 188,183 TOTAL OPERATING EXPENSES $ 3,683,417 (See independent auditor's report.) -92- STATISTICAL SECTION VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENT-WIDE REVENUES For the Year Ended December 31, 2003 -- PROGRAM REVENUES Charges for services $ 9,108,134 Operating grants 248,778 '— Capital grants 62,201 GENERAL REVENUES Taxes 15,439,260 Investment income 210,003 Donations 410,000 Miscellaneous 60,071 Gain on sale of capital assets 616,470 TOTAL REVENUES $ 26,154,917 NOTE: The Village implemented GASB S-34 for the fiscal year ended December 31, 2003. Data Source Village Records - 93 - VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENT-WIDE EXPENSES BY FUNCTION For the Year Ended December 31, 2003 GOVERNMENTAL ACTIVITIES General government $ 4,934,634 Public safety 9,507,203 Public works 2,993,872 Culture and recreation 1,642,384 Total governmental activities 19,078,093 BUSINESS-TYPE ACTIVITIES Water and sewer 5,350,750 ... Sports Core 3,739,185 Total business-type activities 9,089,935 — TOTAL PRIMARY GOVERNMENT $ 28,168,028 NOTE: The Village implemented GASB S-34 for the fiscal year ended December 31, 2003. Data Source Village Records - 94 - VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL REVENUES BY SOURCE Last Ten Fiscal Years Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Intergovernmental $ 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 $ 10,943,766 Property taxes 549,482 5,410 - - - - - - - - Utility taxes 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 4,500,108 Hotel/moteltaxes 235,606 274,041 290,198 312,383 330,953 338,951 353,692 308,101 297,911 306,365 Licenses and permits 322,779 477,624 374,617 404,998 391,789 432,724 623,858 324,131 468,403 570,261 Service charges 293,743 336,146 423,139 305,137 364,650 425,752 389,557 374,409 560,204 703,634 Fines and penalties 280,339 220,593 211,809 214,086 222,239 198,769 223,462 300,311 311,750 353,513 Investment income 426,127 713,992 784,652 983,733 1,043,142 849,568 1,347,175 1,135,564 486,149 158,482 Miscellaneous 233,836 253,327 296,482 246,490 603,548 665,606 1,679,561 497,185 125,766 638,477 TOTAL REVENUES $ 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 $ 18,174,606 NOTE: Includes General,Special Revenue,Debt Service and Capital Projects Funds. Data Source Village Records -95 - VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 General government $ 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 $ 5,921,350 Public safety 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 9,537,454 Public works 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 2,311,253 Culture and recreation 462,781 539,734 726,820 1,010,800 1,056,802 1,144,361 1,104,942 1,245,024 1,603,019 1,554,606 Debt service 944,821 - - - - - - - - - TOTAL EXPENDITURES $ 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 $ 19,324,663 NOTE: Includes General,Special Revenue,Debt Service and Capital Projects Funds. Data Source Village Records -96- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 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 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 -- 2003 2002 - - N/A 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 - 97 - — 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 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 2002 1,293,804 3,881,412 33.33 — Data Source Office of the County Clerk - 98 - VILLAGE OF OAK BROOK,ILLINOIS PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 TAX RATES Village of Oak Brook 0.0641 - - - - - - - - - Basic Town 0.8348 0.8089 0.7141 0.6095 0.6072 0.5834 0.5601 0.5379 0.5072 0.4685 Junior College#502 0.2058 0.2068 0.2062 0.2053 0.2042 0.2027 0.2006 0.1966 0.1930 0.2179 Grade School#53 1.0683 1.0763 1.0605 1.0458 1.0362 1.0237 0.9862 0.9689 0.9476 0.8877 High School#86 1.6406 1.6122 1.5907 1.4944 1.4885 1.5258 1.4881 1.4367 1.4250 1.3858 Oak Brook Park District 0.2098 0.2064 0.2045 0.1997 0.1932 0.1911 0.1877 0.1674 0.1538 0.1667 TOTAL TAX RATES 4.0234 3.9106 3.7760 3.5547 3.5293 3.5267 3.4227 3.3075 3.2266 3.1266 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 -99- 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 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 (1)Population 9,087 9,087 9,087 9,087 9,087 9,087 8,702 8,702 8,702 8,702 (2)Assessed value $ 875,114 $ 887,591 $ 905,788 $ 938,948 $ 972,447 $ 1,005,097 $ 1,045,985 $ 1,100,468 $ 1,181,481 $ 1,293,804 (3)Gross general obligation bonded debt 900,000 - - - - - - - - - (3)Less debt service funds 265,447 - - - - - - Net general bonded debt 634,553 - - - - - - - - - Ratio of net general bonded debt to assessed value 72.51% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net general bonded debt per capita $ 69.83 $ - $ - $ - $ - $ - $ - $ - $ - $ - Data Sources (1)U.S. Department of Commerce,Bureau of Census (2)Office of the County Clerk (3)Village Records - 100- VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2003 (2) *Percentage (1) of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt Village of Oak Brook $ - 100.00 $ - DuPage County 217,806,000 4.65 10,131,343 DuPage Forest Preserve 212,296,835 4.65 9,875,082 DuPage Water Commission 84,275,000 5.16 4,351,880 Park Districts 3,165,000 69.09 2,186,719 Elementary School Districts 59,333,000 3.92 2,325,546 High School Districts 95,453,627 7.98 7,617,682 Junior College 502 124,395,000 4.84 6,014,605 Unit District 205 75,575,000 8.49 6,414,769 TOTAL $ 872,299,462 $ 48,917,626 * 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 , - 101 - 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 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Principal $ 900,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - Interest 44,821 - - - - - - - - - TOTAL DEBT SERVICE $ 944,821 $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTAL GENERAL GOVERNMENTAL EXPENDITURES $ 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 $ 19,324,663 RATIO OF DEBT SERVICE TO GENERAL GOVERNMENTAL EXPENDITURES 7.20% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Data Source Village Records - 102- 1 102- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF BOND COVERAGE WATERWORKS SYSTEM BONDS Last Ten Fiscal Years Fiscal Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Gross revenue $ 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 $ 3,754,359 Expenses 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 5,151,162 NET REVENUE AVAILABLE FOR DEBT SERVICE $ 662,214 $ 145,732 $ (372,972) $ 163,779 $ 147,287 $ (407,365) $ (370,901) $ (509,541) $ (523,487) $ (1,396,803) DEBT SERVICE REQUIREMENTS Principal $ 225,000 $ 250,000 $ 275,000 $ - $ - $ - $ - $ - $ - $ - Interest 26,850 16,000 5,500 - - - - - TOTAL DEBT SERVICE $ 251,850 $ 266,000 $ 280,500 $ $ - $ - $ $ - $ - $ COVERAGE 2.63 0.55 (1.33) - - - - - - Data Source Village Records - 103- VILLAGE OF OAK BROOK,ILLINOIS DEMOGRAPHIC STATISTICS December 31,2003 (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 i - 104- 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) 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 2003 3,881,412 0 0 30 19,561 Data Source (1)Village Records — - 105 - VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL TAXPAYERS December 31, 2003 Percentage 2002 of Total _ Assessed Assessed Taxpayers Type of Business Valuation Valuation Oakbrook Shopping Center, LLC Shopping Center $ 82,864,570 6.41% McDonald's Corporation Office Buildings 44,069,860 3.41% RREEF America Life Insurance 21,476,490 1.66% Teacher's Insurance and Annuity Office Buildings 19,393,830 1.50% SFERS Real Estate Group Executive Towers 15,080,570 1.17% Carramerica Office Buildings 12,788,530 0.99% Rouse Company Hotel 12,243,380 0.95% — Equity Office Property Office Building 11,920,950 0.92% Oak Brook International Assoc Retail stores 11,307,970 0.87% Jones, Lang, LaSalle Hotel/Office Building 10,737,720 0.83% — $ 241,883,870 18.71% Data Source Office of the County Clerk _. i - 106 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF INSURANCE IN FORCE December 31,2003 Insurance Coverage Amount of Type of Insurance Company Expires Coverage Village Manager's Bond Intergovernmental Risk Management Agency 12/31/03 $ 150,000 Treasurer's Bond Intergovernmental Risk Management Agency 12/31/03 100,000 Host Liquor Liability Lloyds of London Insurance Company 11/24/04 2,000,000 Contingent Business Interruption Insurance for Loss of Sales Tax Revenues Intergovernmental Risk Management Agency 12/31/03 7,000,000 The Village entered into a contractual agreement with 14 other municipalities to form the Intergovernmental Risk Management Agency(1RMA),which through its risk-sharing provisions,provides the Village with its insurance coverage for liability,property damage,workmen'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$10,000,000 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 31,2003,IRMA members totaled 75 municipalities. Data Source Village Records,IRMA - 107- VILLAGE OF OAK BROOK,ILLINOIS MISCELLANEOUS STATISTICS December 31,2003 _ 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 48 miles Number of Street Lights 565 Fire Protection _ Number of stations 2 Number of firefighters 33 Number of paid on call firefighters 6 Police Protection Number of stations I _ Number of policemen and officers 44 Detention facilities Juvenile 2 _ Adult 2 Education _ Attendance centers 2 Number of teachers 83 Number of students 478 Municipal Water Department Number of customers 5,553 _ Total water pumped(in thousands) 1,608,000 gallons Average daily consumption 4.405 million gallons Miles of water mains 115 Building permits issued 757 Recreation Oak Brook Sports Core- 269 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 449 acres (This schedule is continued on the following page.) '! - 108 -