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CAFR (Year Ended December 31, 2007) 04 4r 4& 4 � a coo 400 C0 VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31 , 2007 VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2007 Prepared by the Financial Department Darrell J. Langlois — Finance Director/Treasurer Village of Oak Brook, Illinois Table of Contents Introductory Section Table of Contents Principal Officials iv Organization Chart v Certificate of Achievement for Excellence in Financial Reporting A Letter of Transmittal vii-xi Financial Section Independent Auditor's Report 1 —2 Management's Discussion and Analysis 3- 14 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 15- 16 Statement of Activities 17- 18 Fund Financial Statements Balance Sheet-Governmental Funds 19 Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets 20 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 22 Statement of Net Assets-Proprietary Funds 23-24 Statement of Revenues, Expenses, and Changes in Net Assets- Proprietary Funds 25 Statement of Cash Flows- Proprietary Funds 26-27 Statement of Fiduciary Net Assets 28 Statement of Changes in Fiduciary Net Assets-Pension Trust Funds 29 Notes to Financial Statements 30-59 Required Supplementary Information (Unaudited) Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual-General Fund 60 Analysis of Funding Progress Illinois Municipal Retirement Fund 61 Sheriff's Law Enforcement Personnel 61 Police Pension Fund 62 Firefighters' Pension Fund 62 Employer Contributions Illinois Municipal Retirement Fund 63 _ Sheriffs Law Enforcement Personnel 63 Police Pension Fund 63 Firefighters' Pension Fund 63 Note to Required Supplementary Information 64 i Village of Oak Brook, Illinois — Table of Contents Pa e s) Financial Section (Continued) — Supplemental Data(Combining and Individual Fund Financial Statements and Schedules, Budgetary Schedules, and Schedules of Capital Assets Used in the Operation of Governmental Funds) _ Major Governmental Funds Schedule of Revenues—Budget and Actual—General Fund 65 Schedule of Expenditures—Budget and Actual—General Fund 66-73 Schedule of Revenues, Expenditures and Changes in Fund — Balance—Budget and Actual—Infrastructure Fund 74-75 Governmental Funds — Combining Balance Sheet-Nonmajor Governmental Funds 76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances- Nonmajor Governmental Funds 77 — Schedule of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual- Nonmajor Governmental Funds Hotel/Motel Tax Fund 78 Motor Fuel Tax Fund 79 Foreign Fire Insurance Fund 80 Promenade T.I.F. Fund 81 — Proprietary Funds Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual—Waterworks System Fund 82 Schedule of Operating Expenses—Budget and Actual- — Waterworks System Fund 83 Schedule of Revenues, Expenses and Changes in Net Assets— Budget and Actual—Sports Core Fund 84 — Schedule of Operating Revenues—Budget and Actual— Sports Core Fund 85 Schedule of Operating Expenses—Budget and Actual— — Sports Core Fund 86-88 Internal Service Funds Combining Statement of Net Assets 89 Combining Statement of Revenues, Expenses and Changes in Net Assets 90 Combining Statement of Cash Flows 91 -92 — Schedule of Revenues, Expenses and Changes in Net Assets— Budget and Actual Self-Insurance Fund 93 Garage Fund 94 — Capital Replacement Fund 95 ii — Village of Oak Brook, Illinois Table of Contents Pa e s) Financial Section (Continued) Supplemental Data(Continued) Fiduciary Funds Combining Statement of Plan Net Assets 96 Combining Statement of Changes in Plan Net Assets Pension Trust Funds 97 Schedule of Changes in Plan Net Assets- Budget and Actual Police Pension Fund 98 Firefighters' Pension Fund 99 Statistical Section (Unaudited) _ Financial Trends Net Assets by Component-Last Three Fiscal Years 100 Change in Net Assets-Last Three Fiscal Years 101 - 102 _ Fund Balances of Governmental Funds-Last Ten Fiscal Years 103 Changes in Fund Balances of Governmental Funds-Last Ten Fiscal Years 104 Revenue Capacity Assessed Value and Actual Value of Taxable Property 105 Property Tax Rates-Direct and Overlapping Governments 106 Principal Revenue Taxpayers 107 Direct and Overlapping Sales Tax Rates 108 Debt Capacity Ratios of Outstanding Debt By Type 109 Schedule of Direct and Overlapping Bonded Debt 110 Legal Debt Margin Information 111 Demographic and Economic Information Demographic and Economic Information-Last Ten Fiscal Years 112 Top Five Principal Employers 113 Retail Sales Volume-Top 25 Illinois Communities 114 Sales Tax Receipts-Cash Basis-Last Ten Fiscal Years 115 _ State Sales Tax Receipts By Month-Cash Basis-Last Three Fiscal Years 116 Non-Home Rule Sales Tax Receipts By Month-Cash Basis-Last Three Fiscal Years 117 Sales Tax By Category-Last Ten Fiscal Years 118 Non-Home Rule Sales Tax By Category-Last Ten Fiscal Years 119 '- Budgeted Full-Time Equivalent Employees-Last Ten Fiscal Years 120-121 Operating Information Operating Indicators-Last Ten Fiscal Years 122 -- Capital Asset Statistics-Last Ten Fiscal Years 123 iii Village of Oak Brook, Illinois — Principal Officials Year Ended December 31,2007 John W.Craig,Village President — Charlotte K. Pruss,Village Clerk — BOARD OF TRUSTEES — James Carson Moin Saiyed _ Jeffrey J. Kennedy Robert G.Sanford Kathryn F. Manofsky Gerald Wolin VILLAGE MANAGER David Niemeyer,Village Manager — FINANCE DEPARTMENT — Darrell J. Langlois, Finance Director/Treasurer iv VILLAGE OF OAK BROOK ORGANIZATIONAL CHART DECEMBER 31, 2007 Residents of Oak Brook Village Clerk Village President and Board of Trustees Village Manager Village Attorney Boards and Commissions Assistant Finance Police Fire Public Community Information Village Library Golf Bath& Village Director Chief Chief Works Development Services& Engineering Director Club Tennis Manager Director Director Purchasing Manager Oper. Director Manager Certificate of Achievement for Excellence - in Financia- - Reporting - Presented to Village of Oak Brook - Illinois - For its Comprehensive Annual — Financial Report for the Fiscal Year Ended December 31, 2006 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. orerua President tl^M.TIO#'j Executive Director Vi G, OF 044, P X90 j O 0 A o y G A r �OUNII Village of _Oak Brook 1200 Oak Brook Road f*Brook,IL 60523-2255 Website June 6, 2008 ... www.oak-brook.org Administration 630.368.5000 �. FAX 630.368.5045 Community President and Board of Trustees Development Village of Oak Brook `- 630.368.5101 Oak Brook, Illinois 60523 FAX 630.368.5128 Engineering The Comprehensive Annual Financial Report(CAFR)of the Village of Oak Brook for the year ended Department 630.368.5130 December 31, 2007 is submitted herewith. Responsibility for both the accuracy of the information FAX 630.368.5128 presented and the thoroughness and fairness of the presentation, including all disclosures, rests with the Village. I believe the data, as presented, is accurate in all material respects; that it is Fire Department presented in a manner designed to fairly set forth the financial position and results of operations of 630.368.5200the Village as measured b the financial activityof its various funds and activities; and that all FAX 630.3630.368..5252 51 gy disclosures necessary to enable the reader to gain the maximum understanding of the Village's Police Department financial affairs have been included. 630.368.8700 _ FAX 630.368.8739 1 am pleased to report that the certified public accounting firm of McGladrey & Pullen, LLP has issued an unqualified opinion on the Village's financial statements for the year ended December 31, Public Works Department 2007. The independent auditor's report is located at the front section of the CAFR. 630.368.5270 FAX 630.368.5295 The CAFR presents the management's discussion and analysis (MD&A), basic financial statements and required supplementary information. The MD&A, which immediately follows the independent Oak Brook auditor's report, provides a narrative introduction, overview, and analysis of the basic financial Public Library statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Included in the basic financial statements are the government-wide financial statements, 600 Oak Brook Road fund financial statements and notes to the financial statements. The required supplementary "rak Brook,IL 60523-2200 information presents the budgetary comparison schedules and other schedules, 630.368.7700 FAX 630.368.7704 This report includes all funds and activities of the Village. Generally accepted accounting principles "bak Brook Sports Core require that the financial reporting entity include (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the Bath&Tennis Club nature and significance of their relationship with the primary government are such that exclusion 700 Oak Brook Road would cause the reporting entity's financial statements to be misleading or incomplete. Based upon Oak Brook,IL 60523-4600 these criteria, there are no agencies or entities whose financial data should be combined with and 630.368.6420 included in the basic financial statements of the Village. FAX 630.368.6439 UM Golf Club 2606 York Road ._�k Brook,IL 60523-4602 630.368.6400 FAX 630.368.6419 VII Profile of the Village of Oak Brook The Village of Oak Brook is located approximately 15 miles west of the Chicago Loop, near the geographic center of the seven-county Chicago metropolitan area. Excellent transportation links are provided to all parts of the greater metropolitan area by a network of tollways and federal and state highways which pass through or near the Village. The Tri-State Tollway (1-294), running along the Village's eastern boundary, provides rapid access to the northern and southern suburbs, and into Wisconsin and Indiana. The East-West Tollway(1-88), passing through the Village's northern sector, joins the Eisenhower Expressway to the northeast, providing direct access to Chicago's Loop. Additional links include east-west arteries Illinois Route 38 and U.S. Route 34, which pass, respectively, to the north and south of the Village, and Illinois Route 83, which bisects the community in a north-south direction. The Oak Brook area is generally bounded on the north by the communities of Lombard, Villa Park, Elmhurst and Oakbrook Terrace and on the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale. Oak Brook is a community that has demonstrated a high degree of economic stability. While the Illinois unemployment rate is approximately 5.0%, DuPage County has established an unemployment rate of 3.8%, significantly lower than the norm. According to the 2000 Census, over 80% of the households in Oak Brook are two or more persons, and over 74% of the occupants of the Village have resided in the same home in Oak Brook for over 5 years, indicating a strong level of population stability. Per capita income of Village residents in 2000 was $76,668 and the mean family income was $187,961. The Census also indicates that managerial, professional, and sales occupations are held by 88%of Village residents employed. The Village of Oak Brook operates under the Village form of government with an elected Village President and six (6) Trustees. Operational management is provided by a professional manager appointed by the Board of Trustees. The Village provides a wide range of services including police protection, fire protection, recreation facilities, a free public library, water supply, storm water collection, public works operations, road maintenance, building and inspection services, and general administrative services. The annual budget is the primary guiding document for the Village's financial planning and control. Budgetary control is maintained through a system of monthly revenue and expenditurelexpense 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 can not be changed without supplemental ordinance approval. The budget is monitored at the subfunction level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Local Economy and Finances The Village of Oak Brook has been and continues to be one of the preeminent business centers in the Chicago metropolitan area. Several Fortune 500 companies have facilities in the Village, including the corporate headquarters of McDonald's Corporation. As a retail center, Oak Brook offers upscale shopping, fine restaurants, and Oakbrook Center, one of the leading outdoor shopping centers in the United States. These factors, as well as the performance of the Illinois economy over time, have enabled the Village to operate without a real estate tax since inception due to the sales taxes generated from retail business activities. With sales taxes being the largest source of revenue, the local and national economy has a significant effect on the amount of revenue the Village receives. Like most other communities, since the late 1990's through 2003 Oak Brook had experienced flat to declining sales tax revenue. In addition to the regional and national trends, Oak Brook has experienced the relocation of several significant sales tax payers to other local and out-of-state locations. This has resulted in revenue declines in excess of the national averages and has caused many challenges in funding the cost of government services. viii In order to find a permanent solution to this problem, the Village Board asked the voters to authorize the imposition of a non-home rules sales tax of 0.25% at the March 2004 primary election. An overwhelming majority(74%) voted in favor of the proposal. Thus, the Village began recognizing revenue from this new revenue source on July 1, 2004 and in 2007 the Village recognized $2.6 million of additional revenue from the new tax. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This allows other revenue sources previously dedicated for these purposes (primarily utility taxes) for use on other governmental functions and should aide in funding governmental activities in the future. During 2007 the Village completed the Oak Brook Commercial Revitalization Project, which is designed to look at - improving the commercial areas within the Village. As part of this project it is expected that the Village will be required to make additional investments in the area of infrastructure in order to encourage redevelopment and increasing the Village's sales tax base. Also during 2007 the Illinois State Toll Highway Authority began a project to widen the 1-88 bridge over 22nd Street. The Village is required to fund 1/3 of the cost of this project, which is based on recent estimates, is expected to be approximately $7.5-$8.5 million. This estimate includes costs associated with improving three separate water main segments as well as decorative lighting along 22nd Street. Although a formal agreement does not exist at this time, the Village's financial obligation is expected to be financed by the Illinois Toll Highway Authority, without interest, in negotiated installment payments through 2010 and possibly later. In order to fund the infrastructure needs of the Oak Brook Commercial Revitalization Project and the Village's financial obligation for the 1-88/22nd Bridge project, the Village Board directed that a referendum question be placed on the ballot for the April 2007 election that authorizes an increase in non-home rule sales tax by an additional 0.25%. This measure was approved by 59%of the voters and will result in additional revenue of approximately$2.7 million annually in order to fund these two important projects. Imposition of the additional 0.25% non-home rule sales tax (bringing the non-home rule rate to 0.50% and total sales tax rate in Oak Brook to 7.25%) began on January 1, 2008, with collections to begin in April 2008. During 2005 the Village approved a redevelopment agreement with a developer to add a significant retail center in the Butterfield-Meyers Road area that will have a positive effect on sales tax revenue in the future. This project is being assisted with tax increment financing (T.I.F) using both the incremental real estate taxes as well as 20%of the incremental sales taxes within the project area. Once the project is completed and the note is issued (likely in 2008), it is expected that the Village will receive in excess of$600,000 annually in additional sales tax revenue. Long-term Financial Planning The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Objectives-this is an annual process in which the Village Board and staff express specific objectives to be accomplished. Typically, objectives relate to a specific task or project or to a change in methods or operations designed to achieve the stated objective. Roadway Maintenance 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 that can assist in identifying positive and negative trends. ix Annual Budget using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers(called "programs") and sets the spending plan for the coming year. The foundation of all of the Village's financial planning is centered on the Village Board's well publicized policy of maintaining a cash and investment reserve in the General Fund that meets or exceeds six months of annual operating expenses. The six-month policy level, which is higher than many other municipalities, was established due to the Village not having the predictability of real estate tax revenue and the fact that most of its general revenues that are collected by the State (sales and telecommunications taxes) have a three month delay. This conservative policy ensures that the Village will have sufficient funds on hand to operate in an emergency situation as well having sufficient time to address any economic downturns. As of December 31, 2007, the cash and investment balance in the General Fund was equal to approximately 6.5 months of 2007 budgeted operating expenses. Major Initiatives In 2007, the Village completed the 2007 paving program, began major computer hardware and software upgrades including replacement of the Village's major financial systems, outlays to plan for beautification enhancements within the Village, pond bank stabilization at the Golf Club, several water main projects, exterior painting and repair of 2 elevated water storage tanks, numerous municipal building improvements, and completion of the Oak Brook Commercial Revitalization Project. Included in the 2008 budget is the completion of the computer hardware and software upgrade project, outlays to enhance beautification within the Village, implementation of targeted "Wi-Fi" applications in the public safety departments, completion of the pond bank stabilization project at the Golf Club, several water main projects, initiation of a new Geographic Information Systems (GIS) Program (made possible by the additional non-home rule sales tax revenue), numerous municipal building improvements, and payments related to the Village obligation for the 1-88/22nd Street Bridge Project. In later years the Five-Year Financial Plan includes funding the remainder of the Village's obligation for its share of the 1-88/22nd Street Bridge Project, 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 B, additional storage capacity for the water system, and annual outlays associated with the Hotel District Beautification Project, Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Oak Brook for its Comprehensive Annual Financial Report for the year ended December 31, 2006. 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 30 consecutive years. We believe that our current Report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another Certificate. x The preparation of this report could not be accomplished without the efficient and dedicated services of the entire Finance Department of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Darrell J. Langlo - Finance Director/Treasurer xi INDEPENDENT AUDITOR'S REPORT McGladrey& Pullen Certified Public Accountants Independent Auditor's Report To The Honorable Village President Members of the Board of Trustees Village of Oak Brook, Illinois We have audited the accompanying financial statements of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund information of the Village of Oak Brook, Illinois, as of and for the year ended December 31, 2007,which collectively comprise the Village's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Village of Oak Brook, Illinois. Our responsibility is to express opinions on these 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 financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion,the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities,the business-type activities,each major fund and the aggregate remaining fund information of the Village of Oak Brook, Illinois, as of December 31, 2007 and the respective changes in financial position and cash flows,where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The required supplementary information which includes management's discussion and analysis(pages 3–14), budgetary comparison information(page 60), pension related information(pages 61 -63)and note(page 64) 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 required supplementary information. However,we did not audit the information and express no opinion on it. McGladrey&Pullen,LLP is a member firm of RSM International— an affiliation of separate and independent legal entities. - 1 - Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the Village of Oak Brook, Illinois. The combining and individual nonmajor fund financial statements and other schedules, listed in the table of contents as supplemental data, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. — The accompanying introductory and statistical sections, as listed in the table of contents, have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Schaumburg, Illinois June 6,2008 — -2- VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2007 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, — 2007. 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 vii) and the Village's Financial Statements (beginning on page 15). This discussion and analysis is designed to(1)assist the reader in focusing on significant financial issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to –. address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL REPORT Historically, the primary focus of local government financial statements has been summarized fund type information on a current financial resource basis. Due to the requirements of Government Accounting Standards Board Statement No. 34, beginning in 2003 this approach was modified so that now the Village's financial statements present two kinds of statements, each with a different snapshot of the Village's finances. The focus of the new financial statements is on both the Village as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison(year to year or government to government) and enhance the Village's accountability. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village's finances, in a manner similar to a private-sector business. The focus of the Statement of Net Assets presents — information on all of the Village's assets and liabilities, with the difference between the two reported as net assets. This statement combines and consolidates governmental fund's current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. 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 15-18) 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 -3- _ (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) activities of the Village, which are based on a fee for service designed to cover all or most of the cost of operation, include the waterworks system and operations of the Oak Brook Sports Core. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements to be more familiar. The focus of the presentation is on major funds rather than fund types. A fund is a grouping of related accounts that �., is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village maintains 6 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 4 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. 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 Brook Sports Core. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village's various functions. The Village uses internal service funds to account for the costs of health and dental insurance, garage operations, and the advance funding of equipment replacement. Because the Village's costs for these items relate to both 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. -4- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) ._ The basic proprietary fund financial statements can be found on pages 23 through 27 of this report. r Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources _ of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters' Pension Fund. The basic fiduciary fund financial statements can be found on pages 28 and 29 of this report. Infrastructure Assets — Prior to 2003, the Village's largest group of assets (infrastructure assets- roads, bridges, storm sewers, etc.) were not reported nor depreciated in governmental financial statements. GASB Statement No. 34, which was implemented in 2003, requires that these assets be valued and reported within the Governmental column of the r Government-wide Statements. Additionally, the Village must elect to (1) depreciate the assets over their estimated useful life or(2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity(modified approach). The Village has chosen to depreciate assets over their useful life. If a road project is considered maintenance, a recurring cost that does not extend the original useful life or expand its capacity, the cost of the project will be expensed. An"overlay" of a road will be considered maintenance whereas a"rebuild"of a road will be capitalized. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 30 through 59 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 and also includes a budget to actual Schedule of Revenues, Expenditures, and Changes in Fund r Balance for the General Fund. Required supplementary information can be found on pages 60 through 64 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 65 through 99 of this report. Financial Analysis of the Village as a Whole '— Beyond presenting current year financial information in the govemment-wide and major individual fund formats, the Village also presents comparative information from the prior year in the Management's Discussion and Analysis. By doing so, the Village is providing an additional means of analyzing its financial condition and financial position as of December 31,2007. -5- _ (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) GOVERNMENT-WIDE STATEMENTS Net Assets The following table reflects the condensed Statement of Net Assets for 2007 and 2006: Table 1 Statement of Net Assets As of December 31,2007 and 2006 (in millions) Governmental Business-Type Total Primary Activities Activities Government 2007 2006 2007 2006 2007 2006 Current and Other Assets $ 23.1 $ 21.7 $ 6.3 $ 5.6 $ 29.4 $ 27.3 Capital Assets 64.9 65.7 24.8 24.3 89.7 90 Total Assets 88.0 87.4 31.1 29.9 119.1 117.3 Current Liabilities 3.6 3.7 0.9 1.0 4.5 4.7 Other Liabilities 2.3 3.1 0.5 0.5 2.8 3.6 Total Liabilities 5.9 6.8 1.4 1.5 7.3 8.3 Net Assets: Invested in Capital Assets, Net of Debt 62.4 62.9 22.7 23.3 85.1 86.2 Unrestricted 19.7 17.7 7.0 5.1 26.7 22.8 Total Net Assets $ 82.1 $ 80.6 $ 29.7 $ 28.4 $ 111.8 $ 109.0 The Village's combined net assets increased by$2.8 million from$109.0 to$111.8 million during 2007. The increase in net assets of governmental activities is primarily attributed to an increase in the hotel/motel tax rate from 1%to 3% in order to fund expenditures in the Hotel Beautification District. The increase in net assets of business-type activities is primarily due to receipt of a rebate from the DuPage Water Commission. For more detailed information, see the Statement of Net Assets on pages 15 and 16. -6- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) _ Activities The following table summarizes the revenue and expenses of the Village's activities for 2007 and 2006: Table 2 Changes in Net Assets For the Fiscal Year Ended December 31,2007 and 2006 in millions Governmental Business-Type Total Primary Activities Activities Government 2007 2006 2007 2006 2007 2006 REVENUES Program Revenues: - Charges for Services $ 2.7 $ 2.0 $ 8.4 $ 8.0 $ 11.1 $ 10.0 Grants and Contributions 0.5 0.3 - - 0.5 0.3 General Revenues: Sales and Local Use Taxes 14.4 14.2 - - 14.4 14.2 Utility Taxes 4.2 3.8 - - 4.2 3.8 Other Taxes 2.4 1.5 - - 2.4 1.5 Investment Income 0.9 0.7 0.3 0.2 1.2 0.9 Other 0.2 0.2 0.8 - 1.0 0.2 Total Revenues 25.3 22.7 9.5 8.2 34.8 30.9 EXPENSES General Government 5.3 4.7 - - 5.3 4.7 Public Safety 12.3 12.0 - - 12.3 12.0 Public Works 4.3 4.1 - - 4.3 4.1 Culture and Recreation 1.8 1.9 - - 1.8 1.9 -' Waterworks System - - 4.5 3.9 4.5 3.9 Sports Core - - 3.7 3.7 3.7 3.7 _ Interest on Long-Term Debt 0.1 0.1 - - 0.1 0.1 Total Expenses 23.8 22.8 8.2 7.6 32.0 30.4 Change in Net Assets $ 1.5 $ (0.1) $ 1.3 $ 0.6 $ 2.8 $ 0.5 Total Net Assets $ 82.1 $ 80.6 $ 29.7 $ 28.4 $ 111.8 $ 109.0 _ -7- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) 2007 Revenues By Source Other Other 6.0% Taxes 6.9% Charges for Services _ 32.0% Utility Taxes 12.2% Sales and Use Taxes Grants and 41.6% Contributions 1.3% 2007 Expenses by Function Sports Core 11.6% General Government Waterworks System 17.0% 13.9% Culture & Recreation 5.5% Public Works Public Safety 13.5% 38.5% -8- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) There are eight basic impacts on revenues and expenses as reflected below: Normal Impacts Revenues Economic condition- this can reflect a declining, stable, or growing economic environment and has a substantial impact on state income, sales, and utility tax revenue, as well as public spending habits for building permits, elective user fees,and consumption volumes. Increase/Decrease in Village approved rates- while certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase or decrease rates (water fees, utility tax rates, permit fees, etc.). Changing patterns in intergovernmental and grant revenue (both recurring and non-recurring)- certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring or one-time grants are less predictable and often distort their impact on year-to-year comparisons. Market impacts on investment income- the Village's investment portfolio is managed using a similar average _ maturity to most other governments. Market conditions may cause investment income to fluctuate. Expenses Introduction of new programs-within functional expense categories, individual programs may be added or deleted in order to meet the changing needs of the Village. Changes in authorized personnel- changes in service demand may cause the Village Board to change staffing levels. Personnel costs are the Village's most significant operating costs. Salary increases (annual adjustments and merit)- the ability to attract and retain quality personnel requires the Village to strive to have competitive salary ranges and pay practices. Inflation-while overall inflation has been reasonably modest, the Village is a major consumer of certain commodities such as supplies,fuels and parts. Some functions may experience unusual commodity specific increases. Current Year Impacts Revenues For the fiscal year ended December 31, 2007, revenues totaled $34.8 million, an increase of$3.9 million from 2006. ` Revenue from sales and use taxes, which continues to be the Village's largest revenue source, amounted to more than $14.4 million or 41.6% of total revenue, an increase of $0.2 million or 2.1% from 2006. Utility taxes, which includes the taxes imposed on electric, natural gas, and telecommunications services, were $4.2 million or 12.2% of total revenues. This represents an increase of $0.4 million from the comparable amount in 2006, and is mostly attributable to increased receipts from the Village's 5%Telecommunication Tax. 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 2007,these revenues were$2.4 million or 6.9% of total revenues, which is an increase of$0.9 million from 2006. This increase is due to an increase in the _ hotel/motel tax rate from 1% to 3% in 2007 and State shared revenues from income tax and personal property replacement taxes have continued to increase. -9- _ (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis (Continued) Charges for services,which include revenue from water sales, as well as user fees from the Oak Brook Sports Core, were $11.1 million or 32.0% of total revenue, an increase of $1.1 million from 2006. Water system revenues increased due to a full year of revenue at the higher$3.25 rate, Sports Core revenues increased $0.2 million due primarily to increased food and beverage revenue at the Oak Brook Bath &Tennis Club. Other revenues were$1.0 million, an increase of$0.8 million from 2006 due primarily to receipt of a rebate payment from the DuPage Water Commission. Expenses Expenses for the Village of Oak Brook amounted to a total of$32.0 million in 2007, an increase of$1.6 million from 2006. As required by GASB Statement No. 34, the expense totals include depreciation expense of$2.0 million for governmental activities and $0.7 million for 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$12.3 million or 38.5% of total expenses, an increase of$0.3 million from 2006. Increased payroll, overtime, benefit costs, and fewer vacant staff positions are the significant causes of the increase. General government expenses were$5.3 million, an increase of$0.6 million from 2006. Increased salary and benefit costs, increased legal expenses, and costs associated with the Commercial Corridor Revitalization Plan are the primary cause of the increase. Public works expenses were $4.3 million, an increase of$0.2 million from 2006. Culture and recreation expenses were $1.8 million, which is a decrease of$0.1 million due to one-time funding the Village's Independence Day program with Hotel/Motel Tax Fund revenue in 2006. For business-type activities, expenses for the waterworks system were $4.5 million or 13.9% of total expenses, which is an increase of $0.6 million from 2006 due to increased system maintenance costs as well as exterior painting and repair of the two elevated storage tanks. Sports Core expenses were $3.7 million or 11.6% of total expenses,virtually unchanged from 2006. FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS Governmental Funds As noted earlier,the Village of Oak Brook uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. As of December 31, 2007, the governmental funds (as presented on the balance sheet on page 19) had a combined fund balance of$16.9 million, which is an increase of$1.2 million over the prior year. Of this increase, the General Fund had a slight increase of$0.4 million. The Infrastructure Fund, which is primarily supported by the Village's 0.25% non-home rule sales tax, had an increase of $0.2 million due to lower capital _ outlays as compared to 2006. The non-major governmental funds had an increase of$0.6 million due primarily to the Village increasing the hotel/motel tax rate from 1%to 3%in order to fund expenditures in the Hotel Beautification District. Most of the additional revenue collected in 2007 will not be spent until 2008 and thereafter. Proprietary Funds Net assets for the Village's two business-type activities increased $1.3 million from 2006 (see pages 23-25). In the Water Fund, net assets increased by $1.2 million due primarily to receipt of a rebate payment from the DuPage Water Commission. In the Sports Core Fund,net assets increased by$0.1 million due to positive operating results. In 2003, the Village Board policy was to require budget transfers when an individual program or fund exceeds its budget in total. In addition to these program transfers, beginning in 2004 the Village Board approved an ordinance requiring a budget transfer for any individual line item account that exceeded its budget by more than 110%. In -10- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) October 2006 this policy was further revised by eliminating the 110% threshold and instead requiring a line item budget transfer for any variance exceeding $10,000 in a personnel series account and variances exceeding $2,500 _ in all other accounts. In order to stay in compliance with these policies, the Village Board amended the original budget on ten occasions during the year. In addition to these transfers, the original budget in total for the Garage Fund was increased by$40,700 due to increased fuel and maintenance costs. _ Table 3 General Fund Budgetary Highlights _ For the Fiscal Year Ended December 31,2007 Original Amended _ Budget Budget Actual REVENUES AND TRANSFERS Intergovernmental $ 13,025,500 $ 13,025,500 $ 12,788,916 Utility Taxes 4,071,000 4,071,000 4,247,675 i Licenses& Permits 936,915 936,915 850,965 Charges for Services 844,550 844,550 832,008 Other 1,091,195 1,091,195 1,251,012 .. Total Revenues and Transfers 19,969,160 19,969,160 19,970,576 EXPENDITURES General Government 5,560,475 5,643,085 5,529,429 Public Safety 12,477,745 12,462,745 12,109,588 _ Public Works 632,325 612,525 556,862 Culture and Recreation 1,407,655 1,407,655 1,355,451 Total Expenditums 20,078,200 20,126,010 19,551,330 Change in Fund Balance $ (109,040) $ (156,850) $ 419,246 Intergovernmental revenues were under budget due to sales tax revenue failing to meet budget projections. Utility tax revenue was over budget due to increased telecommunications tax collections. Licenses and permits were under budget since implementation of a new business license program, which was budgeted in 2007, was not _ implemented and has not been re-budgeted in 2008. Other revenue was over budget due to higher than expected interest revenue,as well as increased police fine revenue. Actual expenditures were over 97% of the original and revised budget. None of the variances underlying these totals are individually significant. (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) Capital Assets The following schedule reflects the Village's capital asset balances as of December 31, 2007 and 2006. Table 4 Capital Assets As s of December 31, 2007 and 2006 (in millions) Governmental Business-Type Activities Activities Total 2007 2006 2007 2006 2007 2006 Land and Land Right of Way $ 32.3 $ 32.3 $ 8.3 $ 8.3 $ 40.6 $ 40.6 Buildings and Land Improvements 18.8 18.8 8.6 8.6 27.4 27.4 Machinery,Vehicles, and Equipment 8.2 8.0 4.7 4.7 12.9 12.7 Infrastructure 33.1 32.7 16.9 15.8 50.0 48.5 Construction in Progress 0.4 - 0.1 0.1 0.5 0.1 92.8 91.8 38.6 37.5 131.4 129.3 Less: Accumulated Depreciation (27.9) (26.1) (13.8) (13.2) (41.7) (39.3) Total $ 64.9 $ 65.7 $ 24.8 $ 24.3 $ 89.7 $ 90.0 At year-end, the Village's investment in capital assets (net of accumulated depreciation) for both its governmental and business-type activities was $89.7 million, a decrease of$0.3 million from 2006 (see Note 5 in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2007 included the following: • Replacement of the Village's financial accounting systems, purchase of a tow-behind paver, six Police vehicles, one Fire Vehicle, and one Public Works vehicle are among additions totaling $0.8 million that were purchased for use in governmental activities. • For business-type activities,the water mains in Westdale Gardens were replaced,four golf course maintenance equipment items were replaced, and the pond banks on holes 4&5 were repaired at the Oak Brook Golf Club. - 12- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) Long-Term Debt As a non-home rule community, the Village's legal general obligation debt limit is 8.625 percent of equalized _ assessed valuation (EAV), or$132,921,063 based on January 1, 2006 EAV of$1,578,273,191. As of December 31, 2007, the Village has $3,205,000 of debt outstanding attributed to three installment contracts that is applicable to the legal limit (see Note 7 in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village's outstanding long-term debt: Table 5 Long-term Debt As of December 31, 2007 Governmental Business-Type Activities Activities Total General Fund Certificates: Series 1999 $ - $ 195,000 $ 195,000 Series 2001 2,485,000 2,485,000 Series 2003(Refunding) - 525,000 525,000 Total $ 2,485,000 $ 720,000 $ 3,205,000 The General Fund Certificates are general obligations of the Village but are not secured by a pledge of property taxes. With respect to the 1999 and 2003 series certificates,the Village intends to use Sports Core Fund revenues to pay the annual debt service. Thus, these obligations have been included with business-type activities. Both the General Fund Certificates, Series 1999 and General Fund Certificates, Series 2001 received a rating of Aa2 from Moody's Investor Service, Inc. Economic Factors and Next Year's Budget Whereas real estate taxes are typically a major source of revenue in most other municipalities, the Village of Oak Brook does not levy a tax on real estate. In addition, since Oak Brook is a non-home rule community and is subject to the tax cap, this effectively limits the Village's real estate tax levy at $-0-. Thus, as compared to other municipalities, Oak Brook's revenue stream is much more dependent on the local and national economy since sales taxes, utility taxes, and state-shared revenues are the primary sources of income to the Village. ... In the early 2000s, declines in the State economy as well as the relocation of several taxpayers to other jurisdictions resulted in a significant decline in sales tax revenue. The cumulative effect of these negative revenue events eventually resulted in the Village Board asking the voters to authorize the imposition of a non-home rules sales tax of 0.25% at the March 2004 primary election. An overwhelming majority of voters (74%) voted in favor of the proposal. Imposition of the new non-home rule sales tax began on July 1, 2004 and the Village began receiving payments in October 2004. For 2007 the Village recognized $2.6 million of revenue from this tax. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This has allowed the Village to utilize other revenue sources previously dedicated for those purposes (primarily utility taxes) for use on other governmental functions. - 13- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) During 2007 the Village completed work on the Oak Brook Commercial Revitalization Project, which is designed to look at improving the commercial areas within the Village. As part of this project it is expected that the Village may be required to make additional investments in the area of infrastructure. The long-term goal of this project is to encourage redevelopment and increase the Village's sales tax base. Also during 2007,the Illinois State Toll Highway Authority began the project to widen the 1-88 bridge over 22nd Street. As part of this project, the portion of 22nd Street that is under the bridge will be widened from 2 lanes to 3 lanes. This is a long awaited project that addresses a major traffic problem in the Village and is considered a key component towards encouraging commercial redevelopment. As part of a 1999 agreement with the Illinois Department of Transportation, the Village is required to fund 1/3 of the cost of this project. Based on recent estimates the Village share is expected to be approximately between $7.5 and $8.5 million. The Village share also includes improvements to 3 separate water main segments, as well as decorative lighting being installed as part of the improvements in the Hotel Beautification District. In order to fund the infrastructure needs of the Oak Brook Commercial Revitalization Project and the Village's financial obligation for the 1-88/22nd Street Bridge project, a referendum question was placed on the ballot in April 2007 that authorized an increase in non-home rule sales tax by an additional 0.25%. This measure was approved by 59% of the voters and will result in additional revenue of approximately $2.7 million annually in order to fund these two important projects. Imposition of the additional 0.25% non-home rule sales tax (bringing the non-home rule rate to 0.50% and total sales tax rate in Oak Brook to 7.25%) began on January 1, 2008, with collections of the additional tax beginning in April 2008. During 2007 the Village completed design work on a plan to improve and beautify many areas in the Village. The initial implementation plan is targeted in the commercial areas of the Village that have hotels, and significant construction expenditures are expected to begin in 2008. In order to fund this portion of the implementation, the Village Board created a Hotel Beautification District and increased the hotel/motel tax from 1% to 3% at the end of 2006 to fund this initiative. During 2005 the Village approved a redevelopment agreement with a developer whereby the Village has agreed to reimburse the developer for certain costs associated with the redevelopment project area within the tax increment financing (TIF) #1 Butterfield-Meyers Road Redevelopment Project Area (See Note 9). The reimbursement would be in the form of a note payable from the incremental real estate taxes and 20% of the incremental sales taxes within the project area. Once the note is issued and the project is completed (likely in 2008), it is expected that the Village will receive in excess of$600,000 annually in additional sales tax revenue. CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the Village's finances and to demonstrate accountability for the money it receives. Questions concerning this _ report or requests for additional financial information should be directed to Darrell J. Langlois, Finance DirectorNillage Treasurer,Village of Oak Brook, 1200 Oak Brook Road,Oak Brook, IL 60523. - 14- (See independent auditor's report.) Village of Oak Brook, Illinois Statement of Net Assets December 31,2007 Governmental Business-Type Activities Activities Total _ Assets Current _ Cash and investments $ 17,075,100 $ 6,456,937 $ 23,532,037 Receivables(net of allowance for uncollectible) Sales taxes 3,883,218 - 3,883,218 Utility taxes 750,524 - 750,524 Accounts 166,649 - 166,649 Billed and unbilled water sales - 396,607 396,607 Allotments 20,233 - 20,233 Other 357,689 94,360 452,049 _ Advances to(from)other funds 1,290,000 (1,290,000) - Internal balances (508,148) 508,148 - Inventories 65,630 177,876 243,506 Prepaid expense 18,531 - 18,531 Total current assets 23,119,426 6,343,928 29,463,354 Noncurrent Capital assets Non-depreciable 32,730,215 8,322,717 41,052,932 _ Depreciable, net of accumulated depreciation 32,179,982 16,470,641 48,650,623 Total noncurrent assets 64,910,197 24,793,358 89,703,555 Total assets $ 88,029,623 $ 31,137,286 $ 119,166,909 (Continued) See Notes to Financial Statements. - 15- Village of Oak Brook, Illinois Statement of Net Assets-Continued December 31,2007 Governmental Business-Type Activities Activities Total Liabilities Current Accounts payable $ 522,758 $ 359,945 $ 882,703 Accrued payroll 548,369 81,372 629,741 Accrued interest 9,717 4,109 13,826 Claims payable 150,000 - 150,000 Deposits 1,017,731 76,405 1,094,136 Unearned revenue 239,647 67,117 306,764 _ Current maturities of long-term obligations 1,108,852 327,808 1,436,660 Total current liabilities 3,597,074 916,756 4,513,830 Noncurrent Long-term obligations Due in more than one year 2,325,324 525,000 2,850,324 Total liabilities 5,922,398 1,441,756 7,364,154 Net Assets Invested in capital assets, net of related debt 62,425,197 22,741,163 85,166,360 Unrestricted 19,682,028 6,954,367 26,636,395 Total net assets $ 82,107,225 $ 29,695,530 $ 111,802,755 See Notes to Financial Statements. - 16- Village of Oak Brook,Illinois Statement of Activities _ Year Ended December 31,2007 Program Revenues Operating Charges for Grants and _ Functions/Programs Expenses Services Contributions Governmental activities _ General government $ 5,324,817 $ 1,734,455 $ - Public safety 12,285,192 930,430 147,546 Public works 4,304,981 12,147 305,665 _ Culture and recreation 1,765,416 25,373 - Interest 88,536 - - Total governmental activities 23,768,942 2,702,405 453,211 _ Business-type activities Waterworks system 4,440,668 4,639,125 - _ Sports core 3,718,300 3,775,017 - Total business-type activities 8,158,968 8,414,142 - Total $ 31,927,910 $ 11,116,547 $ 453,211 General revenues _ Taxes Replacement Sales and use _ Utility Hotel/motel Income _ Other Investment income DuPage Water Commission rebate .., Miscellaneous Total general revenues _ Change in net assets Net assets-beginning Net assets-ending See Notes to Financial Statements. -17- Net(Expense), Revenue and Changes in Net Assets Capital Governmental Business-Type Grants Activities Activities Total $ - $ (3,590,362) $ - $ (3,590,362) (11,207,216) - (11,207,216) 10,045 (3,977,124) - (3,977,124) - (1,740,043) - (1,740,043) - (88,536) - (88,536) 10,045 (20,603,281) - (20,603,281) - - 198,457 198,457 56,717 56,717 - - 255,174 255,174 $ 10,045 (20,603,281) 255,174 (20,348,107) 322,979 - 322,979 14,440,312 - 14,440,312 4,247,675 - 4,247,675 1,262,808 - 1,262,808 770,220 - 770,220 35,498 - 35,498 848,993 319,210 1,168,203 - 756,722 756,722 158,647 - 158,647 22,087,132 1,075,932 23,163,064 1,483,851 1,331,106 2,814,957 80,623,374 28,364,424 108,987,798 $ 82,107,225 $ 29,695,530 $ 111,802,755 -18- Village of Oak Brook,Illinois Balance Sheet-Governmental Funds December 31,2007 Nonmajor Total General Governmental Governmental Fund Infrastructure Funds Funds Assets Cash and investments $ 9,876,274 $ 1,424,502 $ 1,286,958 $ 12,587,734 Receivables Sales taxes 3,055,083 828,135 - 3,883,218 Utility taxes 750,524 - - 750,524 Accounts 166,649 - - 166,649 Allotments - - 20,233 20,233 _ Other 194,335 29,471 112,574 336,380 Advances to other funds 1,290,000 - - 1,290,000 Inventories 1,112 - - 1,112 Total assets $ 15,333,977 $ 2,282,108 $ 1,419,765 $ 19,035,850 Liabilities ... Accounts payable $ 264,350 $ 38,169 $ 36,888 $ 339,407 Accrued payroll 487,020 54,235 - 541,255 Deposits payable 1,004,467 13,264 - 1,017,731 Unearned revenue 134,945 65,522 - 200,467 Total liabilities 1,890,782 171,190 36,888 2,098,860 Fund Balances _ Reserved for inventories 1,112 - - 1,112 Reserved for advances 1,290,000 - - 1,290,000 Unreserved-undesignated Undesignated-General fund 12,152,083 - - 12,152,083 Undesignated-Special revenue funds - - 1,365,470 1,365,470 Undesignated-Capital projects funds - 2,110,918 17,407 2,128,325 Total fund balances 13,443,195 2,110,918 1,382,877 16,936,990 — Total liabilities and fund balances $ 15,333,977 $ 2,282,108 $ 1,419,765 $ 19,035,850 See Notes to Financial Statements, - - 19- Village of Oak Brook,Illinois Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets December 31,2007 Total fund balances-governmental funds $ 16,936,990 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities, excluding the internal service fund capital assets below, are not financial resources and, therefore, are not reported in the governmental funds. 62,911,683 Interest payable is not due and payable in the current period and,therefore, is not reported in the governmental funds. (9,717) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: Installment contracts payable (2,485,000) Compensated absences payable (940,586) A portion of the net assets of the internal service funds are included in the governmental activities in the Statement of Net Assets. Capital assets 1,998,514 Other net assets 3,695,341 Net assets of governmental activities $ 82,107,225 See Notes to Financial Statements. -20- Village of Oak Brook,Illinois Statement of Revenues,Expenditures and Changes in Fund Balances — Governmental Funds Year Ended December 31,2007 Nonmajor Total General Governmental Governmental Fund Infrastructure Funds Funds Revenues Intergovernmental $ 12,788,916 $ 10,045 $ 309,074 $ 13,108,035 Non-home rule sales tax - 2,618,565 - 2,618,565 Utility taxes 4,247,675 - - 4,247,675 Hotel/motel taxes - - 1,262,808 1,262,808 Licenses and permits 850,965 - - 850,965 Charges for services 832,008 - - 832,008 —� Fines and penalties 375,717 - - 375,717 Investment income 548,281 81,894 52,553 682,728 Donations 45,150 - - 45,150 Miscellaneous 281,864 - - 281,864 Total revenues 19,970,576 2,710,504 1,624,435 24,305,515 Expenditures Current General government 5,529,429 - - 5,529,429 Public safety 12,109,588 - 46,715 12,156,303 Public works 556,862 1,304,075 600,000 2,460,937 Culture and recreation 1,355,451 - 390,901 1,746,352 Capital outlay - 1,214,933 - 1,214,933 Total expenditures 19,551,330 2,519,008 1,037,616 23,107,954 Net change in fund balances 419,246 191,496 586,819 1,197,561 Fund balances-beginning 13,023,949 1,919,422 796,058 15,739,429 Fund balances-ending $ 13,443,195 $ 2,110,918 $ 1,382,877 $ 16,936,990 See Notes to Financial Statements. -21 - Village of Oak Brook,Illinois Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31,2007 Net change in fund balances-total governmental funds $ 1,197,561 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities,the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This amount is the amount by which depreciation expense($1,977,249)exceeded capital outlay($1,241,025)in the current period. (736,224) The repayment of long-term debt is reported as an expenditure when due in govermental funds but as a reduction of principal outstanding in the Statement of Activities. 250,000 Some expenses reported in the Statement of Activities do not require the use of current financial resources and,therefore, are not reported as expenditures in governmental funds. These activities consist of: Change in compensated absences (4,958) Change in interest payable 963 The change in net assets of certain activities of internal service funds, excluding depreciation,is included in governmental activities. 776,509 Change in net assets of governmental activities $ 1,483,851 See Notes to Financial Statements. -22- Village of Oak Brook,Illinois Statement of Net Assets-Proprietary Funds December 31,2007 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service _ Fund Fund Total Funds Assets Current Cash and investments $ 6,160,493 $ 296,444 $ 6,456,937 $ 4,487,366 Receivables Billed and unbilled water sales 396,607 - 396,607 - Other 17,760 76,600 94,360 21,309 Inventories - 177,876 177,876 64,518 Prepaid expense - - - 18,531 _ Total current assets 6,574,860 550,920 7,125,780 4,591,724 Noncurrent Capital Assets Non-depreciable 246,252 8,076,465 8,322,717 - Depreciable,net of accumulated depreciation 11,516,403 4,954,238 16,470,641 1,998,514 Total noncurrent assets 11,762,655 13,030,703 24,793,358 1,998,514 Total assets $ 18,337,515 $ 13,581,623 $ 31,919,138 $ 6,590,238 (Continued) See Notes to Financial Statements. -23- _ Village of Oak Brook, Illinois Statement of Net Assets-Proprietary Funds-Continued December 31,2007 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service i Fund Fund Total Funds Liabilities Current Accounts payable $ 331,800 $ 28,145 $ 359,945 $ 183,351 Accrued payroll 38,999 42,373 81,372 7,114 Accrued interest - 4,109 4,109 - Compensated absences payable 35,023 55,590 90,613 8,590 Deposits - 76,405 76,405 - Deferred revenue 17,760 49,357 67,117 39,180 Claims payable - - - 150,000 Installment contract payable - 195,000 195,000 - Capital lease payable - 42,195 42,195 - Total current liabilities 423,582 493,174 916,756 388,235 Noncurrent .- Advances from other funds - 1,290,000 1,290,000 - Installment contract payable - 525,000 525,000 Total noncurrent liabilities - 1,815,000 1,815,000 - Total liabilities 423,582 2,308,174 2,731,756 388,235 Net Assets Invested in capital assets, net of related debt 11,762,655 10,978,508 22,741,163 1,998,514 Unrestricted 6,151,278 294,941 6,446,219 4,203,489 Total net assets $ 17,913,933 $ 11,273,449 29,187,382 $ 6,202,003 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 508,148 Net assets of business-type activities $ 29,695,530 See Notes to Financial Statements. -24- Village of Oak Brook,Illinois ` Statement of Revenues,Expenses and Changes in Net Assets- Proprietary Funds Year Ended December 31,2007 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service Fund Fund Total Funds _ Operating revenues Charges for services $ 4,639,125 $ 3,774,997 $ 8,414,122 $ 3,932,531 Operating expenses Operations 4,020,178 3,374,419 7,394,597 613,009 Claims and insurance - - - 2,409,069 Miscellaneous - - - 20,517 Depreciation and amortization 423,319 314,559 737,878 368,124 Total operating expenses 4,443,497 3,688,978 8,132,475 3,410,719 Operating income 195,628 86,019 281,647 521,812 Nonoperating revenues(expenses) Investment income 282,306 26,811 309,117 215,022 DuPage Water Commission rebate 756,722 - 756,722 - Interest expense - (29,302) (29,302) 19,335 Total nonoperating revenues(expenses) 1,039,028 (2,491) 1,036,537 234,357 Change in net assets 1,234,656 83,528 1,318,184 756,169 Net assets-beginning 16,679,277 11,189,921 5,445,834 Net assets-ending $ 17,913,933 $ 11,273,449 $ 6,202,003 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 12,922 Change in net assets of business-type activities $ 1,331,106 See Notes to Financial Statements. -25- Village of Oak Brook, Illinois Statement of Cash Flows— Proprietary Funds Year Ended December 31,2007 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service Fund Fund Total Funds Cash flows from operating activities Receipts from internal services transactions $ - $ - $ - $ 2,985,729 Receipts from customers and users 4,589,412 3,699,201 8,288,613 - Receipts from miscellaneous revenue 63,855 79,114 142,969 942,692 Payments to suppliers (3,152,479) (1,521,550) (4,674,029) (2,972,749) Payments to employees (698,399) (1,849,283) (2,547,682) (185,964) Net cash from operating activities 802,389 407,482 1,209,871 769,708 Cash flows from capital and related financing activities Capital assets purchased (1,052,543) (177,090) (1,229,633) (244,423) Proceeds from sale of capital assets - - - 19,335 Principal paid on installment contract payable - (165,000) (165,000) - Principal paid on capital lease payable - (40,183) (40,183) - Interest paid - (29,302) (29,302) Net cash from capital and related -- financing activities (1,052,543) (411,575) (1,464,118) (225,088) Cash flows from investing activities Sale of investments 432,832 65,270 498,102 443,414 Proceeds from DuPage Water Commission 1,927,342 - 1,927,342 - Interest received 282,306 26,811 309,117 217,606 Net cash from investing activities 2,642,480 92,081 2,734,561 661,020 Net increase in cash and cash equivalents 2,392,326 87,988 2,480,314 1,205,640 Cash and cash equivalents-beginning 2,938,389 23,267 2,961,656 2,619,427 Cash and cash equivalents-ending $ 5,330,715 $ 111,255 $ 5,441,970 $ 3,825,067 Cash and investments Cash and cash equivalents $ 5,330,715 $ 111,255 $ 5,441,970 $ 3,825,067 Investments 829,778 185,189 1,014,967 662,299 Total cash and investments $ 6,160,493 $ 296,444 $ 6,456,937 $ 4,487,366 (Continued) -26- Village of Oak Brook, Illinois Statement of Cash Flows– Proprietary Funds-Continued Year Ended December 31,2007 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal — System Core Service Fund Fund Total Funds Reconciliation of operating income to net cash provided by operating activities Operating income $ 195,628 $ 86,019 $ 281,647 $ 521,812 Depreciation and amortization 423,319 314,559 737,878 368,124 Adjustments to reconcile operating income to net cash provided by operating activities: Changes in assets and liabilities: Accounts receivable (8,811) - (8,811) 26,416 Other receivable (4,500) 26,936 22,436 - Inventories - (2,005) (2,005) (13,547) Prepaid expenses - - - (4,676) Accounts payable 181,431 (20,751) 160,680 (108,708) _ Accrued payroll and compensated absences payable 10,822 (6,170) 4,652 3,137 Deposits - 15,960 15,960 - _ Deferred revenue 4,500 (7,066) (2,566) (25,850) Claims payable - - - 3,000 Total adjustments 183,442 6,904 190,346 (120,228) Net cash provided by operating activities $ 802,389 $ 407,482 $ 1,209,871 $ 769,708 See Notes to Financial Statements. - -27- Village of Oak Brook, Illinois Statement of Fiduciary Net Assets December 31,2007 Assets Cash $ 1,508,084 Investments Illinois Funds 163,978 Certificates of deposit 99,767 U.S.treasury securities 6,606,365 _ U.S.agency securities 18,238,031 State and local obligations 2,755,166 Mutual funds 20,624,816 Accrued interest receivable 321,779 Total assets 50,317,986 Liabilities Accounts payable 16,746 Net Assets Held in Trust for Pension Benefits $ 50,301,240 See Notes to Financial Statements. — s -28- Village of Oak Brook, Illinois Statement of Changes in Fiduciary Net Assets- Pension Trust Funds _ Year Ended December 31,2007 Additions Contributions Employer $ 1,129,229 Participants 546,518 1,675,747 Investment income Net appreciation in fair _ value of investments 2,166,034 Interest income 1,346,326 Less investment expense (76,594) 3,435,766 Total additions 5,111,513 Deductions _ Administration 86,827 Pension benefits and refunds 2,705,351 Total deductions 2,792,178 Change in net assets 2,319,335 Net assets-beginning 47,981,905 Net assets-ending $ 50,301,240 See Notes to Financial Statements. -29- Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies The financial statements of the Village of Oak Brook, Illinois(the Village) have been prepared in conformity with accounting principles generally accepted in the United States of America(hereinafter referred to as generally accepted accounting principles(GAAP)),as applied to government units. The Governmental Accounting Standards Board(GASB)is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below. Financial 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). There are no 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 by 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 possess 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. 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 party 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. - 30 - Village of Oak Brook, Illinois Notes to Financial Statements _ Note 1. Summary of Significant Accounting Policies(Continued) Fund Accounting The Village uses funds to report on its financial position, results of its operations and cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The minimum number of funds is maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general capital assets (capital projects funds), and the servicing of general long-term debt(debt service funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund. 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 business-type activities and enterprise funds to the extent that those standards do not conflict with or contradict guidance of the GASB. The Village also has the option of following subsequent private-sector guidance for its business-type activities and enterprise funds, subject to this same limitation. The Village has elected to follow applicable GASB pronouncements after November 30, 1989. 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. Government-wide and Fund Financial Statements Government-wide Financial Statements:The government-wide Statement of Net Assets and Statement of Activities report the overall financial activity of the Village. Eliminations have been made to minimize the double- counting of internal activities of the Village. The financial activities of the Village consist of governmental activities, which are primarily supported by taxes and intergovernmental revenues,and business-type activities,which rely to a significant extent on fees and charges for services. The Statement of Net Assets presents the Village's non-fiduciary assets and liabilities with the difference reported in three categories: Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds and other debt that are attributable to the acquisition,construction,or ._ improvement of those assets. Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, grantors,contributors,and the like,or imposed by law through constitutional provisions or enabling legislation. - 31 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) Unrestricted net assets consist of net assets that do not meet the criteria of the two preceding categories. The Statement of Activities demonstrates the degree to which the direct expenses of a given function (i.e.general government, public safety etc.)are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include(a)charges paid by the recipients of goods or services offered by the programs(including fines and fees),and(b)grants and contributions that are restricted to meeting the operational requirements of a particular program. Revenues that are not classified as program revenues, including all taxes,are presented as general revenues. Fiduciary funds are excluded from the government-wide financial statements. Fund Financial Statements: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. The fund financial statements provide information about the Village's funds. The emphasis of fund financial statements is on major governmental funds,each displayed in a separate column. The Village administers the following major governmental funds: General Fund—This 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. Infrastructure Fund—This 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 administers the following major proprietary funds: Waterworks System Fund—This fund accounts for the revenue and expenses relative to the operation of the water utility. Sports Core Fund—This fund accounts for the revenues and expenses relative to the operation of the Oak Brook Sports Core. Additionally,the Village reports the following internal service funds: Internal Service Funds account for the Village's self-insured employee health and dental insurance program;the operation and maintenance of the Village's vehicle fleet equipment, and the Village's capital replacement program provided to other departments or agencies of the Village on a cost reimbursement basis. The Village reports the following fiduciary funds: The Village reports pension trust funds as fiduciary funds to account for the Police Pension Fund and the Firefighters' Pension Fund. w - 32 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) Measurement Focus and 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 enterprise funds, internal service funds, and fiduciary 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 and internal service fund services. Incidental revenues/expenses are reported as nonoperating. 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. 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 expenditures/expenses 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. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first,then unrestricted resources as they are needed. - 33 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) Cash and Cash Equivalents For purposes of the statement of cash flows,the Village considers all highly liquid investments(including restricted assets)with original maturities 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 maturities of less than one year at date of purchase, if any,are stated at amortized cost. All other investments are stated at fair value. Fair value is based on quoted market prices for the same or similar investments. All investments of the pension trust funds are also stated at fair value. Inventories and Prepaid Items 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. Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. 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. The cost of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend the asset lives, are not capitalized. - 34 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) i Capital Assets(Continued) 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 -20 Equipment 5 -20 Vehicles 2 -20 Infrastructure 20 -75 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. 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. ! - 35 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) 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 funds"(i.e.,the current portion of interfund loans)or"advances to/from other funds"(i.e.,the noncurrent portion of interfund loans). All other outstanding balances between funds are reported as"due to/from other funds." Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as"internal balances." 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. Long-Term Obligations In the government-wide financial statements and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund financial statements. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements,governmental funds recognize bond premiums and discounts,as well as bond issuance costs,during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, '- are reported as expenditures. Fund Balance/Net Assets In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. In the government-wide financial statements, restricted net assets are legally restricted by outside parties for a specific purpose. Invested in capital assets, net of related debt, represents the Village's investments in the book value of capital assets, less any outstanding debt that was issued to construct or acquire the capital asset. Elimination and Reclassification .. In the process of aggregating data for the government-wide Statement of Activities,some amounts reported as interfund activity and interfund balances in the funds are eliminated or reclassified. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires _ management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures/expenses during the period. Actual results could differ from these estimates. - 36 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) Reclassification of Certain Expenses Certain expenses on the statement of changes in net assets for the year ended December 31,2006 have been reclassified,with no effect on the change in net assets,to be consistent with the classifications adopted for the year ended December 31, 2007. Note 2. Cash and Investments The Village maintains a cash and investment pool that is available for use by all funds,except the pension trust funds and the Foreign Fire Insurance Tax Fund. Separately held cash and investments for the Foreign Fire Insurance Tax Fund, as well as each fund's portion of this pool are included on the Statement of Net Assets as"cash and investments." The deposits and investments of the pension trust funds are held separately from those of other funds. The Village's cash on hand of$4,651 has been excluded from the amounts shown below. — Permitted Deposits and Investments–The Village's investment policy allows for deposits/investments in insured commercial banks, savings and loan institutions,obligations of the U.S.Treasury and U.S.Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services,and Illinois Funds. The Police Pension Fund and Firefighters' Pension Fund may also invest in certain non-U.S.obligations, Illinois municipal corporations tax anticipation warrants,veteran's loans, obligations of the State of Illinois and its political subdivisions,insurance company general and separate accounts, mutual funds, and equity securities. Deposits To guard against credit risk for deposits with financial institutions,the Village and Police and Firefighters' Pension Fund investment policies require that deposits with financial institutions in excess of FDIC insurance limits be collateralized in an amount between 110%and 115%of the value of the investment depending on the type of security pledged as collateral. In addition,the collateral must be held by a third party acting as the agent for the Village or Pension Funds. At year-end the carrying amount of the Village's deposits totaled$1,309,890 and the bank balances totaled$1,859,952. The Police and Fire Pension Funds'deposits totaled$54,324 and the bank balances totaled $103,076. All bank balances are covered by federal depository insurance or by collateral held by the Village's agent in the Village's name. Custodial Credit Risk–Deposits. Custodial credit risk is the risk that in the event of a bank failure,the Village's deposits may not be returned to it. The Village's policy requires collateralization of all deposits in excess of FDIC insured limits. - - 37 - Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Cash and Investments(Continued) Investments The following schedule reports the fair values and maturities (using the segmented time distribution method)for the Village's investments at December 31,2007: Investment Maturities(in Years) Fair Less Than Greater Than Investment Type Value 1 Year 1.5 Years 6-10 Years 10 Years IMET $ 5,554,537 $ - $ 5,554,537 $ - $ - Mutual Fund Money Market Accounts 20,547 20,547 - - - Illinois Funds* 16,642,412 16,642,412 - - - Total Investments $ 22,217,496 $ 16,662,959 $ 5,554,537 $ - $ - As of December 31, 2007,the Police Pension Fund had the following investments and maturities. Fair Less Than Greater Than Value 1 Year 1-5 Years 6-10 Years 10 Years U.S.Agencies $ 10,369,490 $ 504,023 $ 3,900,484 $ 3,856,959 $ 2,108,024 U.S.Treasuries 3,746,425 - 1,319,922 1,326,275 1,100,228 State and Local Obligations 1,512,951 530,551 125,444 660,978 195,978 Negotiable Certificate of Deposit 99,767 99,767 - - - Money Market Mutual Funds 233,293 233,293 - - Illinois Funds* 27,314 27,314 - - - Total Investments $ 15,989,240 $ 1,394,948 $ 5,345,850 $ 5,844,212 $ 3,404,230 As of December 31,2007,the Firefighters' Pension Fund had the following investments and maturities. Fair Less Than Greater Than Value 1 Year 1-5 Years 6-10 Years 10 Years U.S.Agencies $ 7,868,541 $ 779,606 $ 2,539,438 $ 2,571,732 $ 1,977,765 U.S.Treasuries 2,859,940 - 683,125 1,482,157 694,658 State and Local Obligations 1,242,215 - 466,087 675,240 100,888 Money Market Mutual Funds 1,220,467 1,220,467 - - - Illinois Funds* 136,664 136,664 - - - Total Investments $ 13,327,827 $ 2,136,737 $ 3,688,650 $ 4,729,129 $ 2,773,311 *Weighted average maturity is less than one year - 38 - Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Cash and Investments(Continued) Investments(Continued) GASB 40–Operating Funds — In accordance with its investment policy,the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed within a one-year period. The portion of the investment portfolio that is invested with the Illinois Metropolitan Investment Fund(IMET)has an average maturity of 1.67 years and is subject to interest rate risk. The IMET Fund's duration,which is a measure of interest rate risk, is 1.45 years as of December 31, 2007. This means that if interest rates were to increase by 1%, the value of the IMET Fund would decrease by approximately 1.45%; conversely, if interest rates were to decrease by 1%,the value of the IMET Fund would increase by approximately 1.45%. The Village limits its exposure to credit risk,which is the risk that the issuer of a debt security will not pay its par value upon maturity. This is done primarily by investing in securities issued by the United States Government or by investing in securities issued by agencies of the United States Government,which are implicitly guaranteed by the United States Government. — The Illinois Funds and the IMET fund are both"AAA"rated funds by Standard& Poor's and Fitch Ratings and have minimal exposure to credit risk. The Mutual Fund Money Market Accounts are not rated. In order to limit the exposure to concentration of credit risk,the Village's Investment Policy limits investments in any one financial institution to 25%,exclusive of securities guaranteed by the full faith and credit of the United States Government or obligations of agencies of the United States Government. At December 31,2007, the Village had greater than five percent of its overall portfolio invested in notes of the Illinois Funds(75%), and the IMET Fund (25%). The investment policy does not include any limitations as to how much the Village may hold in Illinois Funds, IMET,or U.S.Treasury and Agency securities. The Village limits its exposure to custodial credit risk by utilizing an independent,third party institution, selected by the Village,to act as custodian for its securities and collateral. For an investment,custodial risk is the risk that, in the _ event of the failure of the counterparty,the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. GASB 40–Police Pension Fund State statutes, as well as the investment policy of the Police Pension Fund provide that the Fund may invest up to 45%of the investment portfolio in equity mutual funds and the remaining 55%of the portfolio in fixed income — securities. The Police Pension Fund has hired a fund manager, MB Financial,to advise and to manage both the fixed income and equity mutual fund portfolios. The Police Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity in order to fund current benefit payments while at the same time extending the average maturity of the investments due to the longer term nature of the projected fund liabilities. As of December 31,2007,the fixed income portfolio had a duration of 4.94 years and is subject to interest rate risk. With a duration of 4.94 years,this means that if interest rates were to increase by 1%,the value of the fixed income investments would decrease by approximately 4.94%; conversely, if interest rates were to decrease by 1%,the value of the fixed income investments would increase by approximately 4.94%. - 39 - Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Cash and Investments(Continued) Investments(Continued) GASB 40—Police Pension Fund (Continued) The Police Pension Fund strives to limit its exposure to credit risk,which is the risk that the issuer of a debt security will not pay the par value upon maturity. This is controlled by primarily investing in securities issued by the United States Government, securities issued by agencies of the United States Government that carry an implicit guarantee, or high quality state or local obligations. United States Government and agency securities are considered to be "AAA"rated by Standard &Poor's and Fitch Ratings and are generally considered free of credit risk due to the stability of the United States Government. For investments in state and local obligations,44.1%are considered to be "AAA"and 55.9%have been rated"Aa3."The Money Market Mutual Funds are not rated. At December 31,2007,the Police Pension Fund had greater than five percent of its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau(15.1%), Federal Home Loan Mortgage Corporation(7.6%)and Federal Home Loan Bank(38.4%). The investment policy does not include any limitations on how much U.S. Treasury or Agency securities can be held in the portfolio. The Police Pension Fund invests up to 45%of its investments in equity mutual funds. The Fund's investment policy defines the strategy in which the Pension Board follows for the equity investments. The Pension Fund diversifies its equity holdings by owning several different mutual funds allocated among the following asset classes subject to the percentage limitations indicated: Normal Range of Allocation Allocation U.S. Large Cap Stocks(may include some 55% +/- 25% Mid-Cap Stocks) U.S. Small-Cap Stocks(may include some 25% +/- 20% Mid-Cap Stocks) Foreign Securities 10% +/- 10% Alternative Investments (including Real Estate) 10% +l- 10% The Police Pension Fund limits its exposure to custodial risk by utilizing the Trust Department of MB Financial to act as custodian for its fixed income securities. For an investment, custodial risk is the risk that, in the event of the failure of the counterparty,the Police Pension Board will not be able to recover the value of its investments that are in the possession of an outside party. GASB 40—Firefighters' Pension Fund State statutes, as well as the investment policy of the Firefighters' Pension Board provide that the Fund may invest up to 45%of the investment portfolio in equity mutual funds and the remaining 55%of the portfolio in fixed income securities. The Firefighters' Pension Fund has hired a fund manager, MB Financial,to advise and manage the fixed income investments. For equity mutual fund investments,the Firefighters' Pension Fund utilizes the services of Merrill Lynch. - 40 - Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Cash and Investments(Continued) Investments(Continued) GASB 40—Firefighters' Pension Funds(Continued) The Firefighters' Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity in order to fund current benefit payments while at the same time extending the average maturity of the investments due to the longer term nature of the projected fund liabilities. As of December 31, 2007,the fixed income portfolio had a duration of 4.85 years and is subject to interest rate risk. With a duration of 4.85 years,this means that if interest rates were to increase by 1%,the value of the fixed income investments would decrease by approximately 4.85%; conversely, if interest rates were to decrease by 1%,the value of the fixed income investments would increase by approximately 4.85%. The Firefighters' Pension Fund strives to limit its exposure to credit risk,which is the risk that the issuer of a debt security will not pay the par value upon maturity. This is controlled by primarily investing in securities issued by the United States Government,securities issued by agencies of the United States Government that carry an implicit guarantee,or high quality state or local obligations. United States Government and agency securities are considered _ to be"AAA"rated by Standard &Poor's and Fitch Ratings and are generally considered free of credit risk due to the stability of the United States Government. For investments in state and local obligations, 100%are considered to be "AAA"rated investments. The Money Market Mutual Funds are not rated. At December 31, 2007,the Firefighters' Pension Fund had greater than five percent of its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau(28.9%)and Federal Home Loan Bank(30.2%). The investment policy does not include any limitations on how much U.S.Treasury or Agency securities can be held in the portfolio. The Firefighters' Pension Fund invests up to 45%of its investments in equity mutual funds. The Fund's investment policy defines the strategy which the Pension Board follows for the equity investments. The Pension Fund diversifies its equity holdings by owning several different mutual funds allocated among the following asset classes subject to the percentage limitations indicated: _ Normal Range of Allocation Allocation ... U.S. Large Cap Stocks 50% +/- 10% U.S. Mid-Cap Stocks 20% +/- 10% U.S. Small-Cap Company Stocks 15% +/- 100/0 Foreign Securities 10% +/- 5% Alternative Investments (such as Real Estate 5% +/- 5% Mutual Funds) - 41 - Village of Oak Brook,Illinois Notes to Financial Statements Note 2. Cash and Investments(Continued) Investments(Continued) GASB 40—Firefighters' Pension Fund(Continued) The Firefighters' Pension Fund limits its exposure to custodial risk by utilizing the Trust Department of Oak Brook Bank to act as custodian for its fixed income securities. For an investment, custodial risk is the risk that, in the event of the failure of the counterparty,the Firefighters' Pension Board will not be able to recover the value of its investments that are in the possession of an outside party. Note 3. Property Taxes Property taxes for 2007 attach as an enforceable lien on January 1, 2007,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, 2008 and August 1, 2008 and are payable in two installments, on our about June 1, 2008 and September 1, 2008. 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. Note 4. Receivables The following receivables are included in Other Receivables on the Statement of Net Assets as of December 31, 2007: Governmental activities IRMA excess surplus $ 114,239 State income tax 72,893 Hotel/motel tax 112,574 Grants 14,622 Other miscellaneous 43,361 �- Total governmental activities $ 357,689 Business-type activities IRMA excess surplus $ 30,135 Members charge 22,777 Special events 37,848 Other miscellaneous 3,600 Total business-type activities $ 94,360 - 42 - Village of Oak Brook, Illinois Notes to Financial Statements Note 5. Capital Assets Governmental Activities A summary of changes in capital assets for governmental activities of the Village for the year ended December 31, 2007 is as follows: Balance Balance January 1 Additions Deletions December 31 Government activities: Capital assets not being depreciated: Land $ 616,829 $ - $ - $ 616,829 Land right of way 31,687,305 - - 31,687,305 Construction in progress - 426,081 - 426,081 Total capital assets not being depreciated 32,304,134 426,081 - 32,730,215 Capital assets being depreciated: Buildings, building and land improvements 18,751,430 28,243 - 18,779,673 Computer equipment 897,659 36,584 47,483 886,760 Other equipment 1,710,128 87,048 43,196 1,753,980 Vehicles 75,416 22,114 - 97,530 _ Infrastructure 32,755,402 365,233 41,535 33,079,100 Internal service fund vehicles 5,321,719 275,722 168,998 5,428,443 59,511,754 814,944 301,212 60,025,486 Less accumulated depreciation for: Buildings, building and land improvements 3,791,194 469,325 - 4,260,519 - Computer equipment 766,984 45,494 36,504 775,974 Other equipment 1,047,602 155,620 40,152 1,163,070 _ Vehicles 66,254 22,114 - 88,368 Infrastructure 17,247,111 919,161 38,628 18,127,644 Internal service fund vehicles 3,199,504 365,535 135,110 3,429,929 26,118,649 1,977,249 250,394 27,845,504 Total capital assets being depreciated, net 33,393,105 (1,162,305) 50,818 32,179,982 Governmental activities capital assets, net $ 65,697,239 $ (736,224) $ 50,818 $ 64,910,197 - 43 - Village of Oak Brook, Illinois Notes to Financial Statements Note 5. Capital Assets(Continued) Business-Type Activities A summary of changes in capital assets for business-type activities of the Village for the year ended December 31, 2007 is as follows: Balance Deletions Balance January 1 Additions and Transfers December 31 Business-type activities: Capital assets not being depreciated: Land $ 8,292,266 $ - $ - $ 8,292,266 Construction in progress 46,039 25,766 41,354 30,451 Total capital assets not being depreciated 8,338,305 25,766 41,354 8,322,717 Capital assets being depreciated: Land improvements 2,871,422 137,824 117,714 2,891,532 Building and building improvements 5,727,411 - - 5,727,411 Infrastructure 15,835,819 1,058,421 37,425 16,856,815 Vehicles 14,337 - - 14,337 Machinery and equipment 4,696,511 77,662 44,028 4,730,145 29,145,500 1,273,907 199,167 30,220,240 Less accumulated depreciation for: Land improvements 1,971,707 62,368 78,476 1,955,599 Building and building improvements 1,989,725 115,063 - 2,104,788 Infrastructure 6,236,135 266,825 27,133 6,475,827 Vehicles 11,350 1,434 - 12,784 Machinery and equipment 2,975,394 292,188 66,981 3,200,601 13,184,311 737,878 172,590 13,749,599 Total capital assets being depreciated, net 15,961,189 536,029 26,577 16,470,641 Business-type activities capital assets, net $ 24,299,494 $ 561,795 $ 67,931 $ 24,793,358 - 44 - Village of Oak Brook, Illinois Notes to Financial Statements Note 5. Capital Assets(Continued) Depreciation Charged to Functions/Programs Depreciation was charged to functions/programs as follows: General government $ 384,428 Public safety 395,455 Public works 1,062,507 Culture and recreation 134,859 $ 1,977,249 Construction Contracts The Village has entered into contracts for the construction or renovation of various facilities as of December 31, 2007, as follows: Project Expended Authorizations To Date Commitment .,. Butterfield Widening IDOT $ 267,200 $ 240,488 $ 26,712 2007 Paving Project 40,624 24,970 15,654 Westdale Gardens Water Main 60,582 59,155 1,427 1-88 Bridge Enhancement 14,000 10,458 3,542 Totals $ 382,406 $ 335,071 $ 47,335 Note 6. Risk Management The Village is exposed to various risks of loss related to torts;theft of,damage to, and destruction of assets;errors and omissions; injuries to employees; illnesses of employees; and natural disasters. The Village participates in the Intergovernmental Risk Management Agency(IRMA)which is an organization of _ municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation's Statute to pool its risk management needs. The Village pays annual premiums to IRMA for its workers'compensation, general liability and property coverage. The Village assumes the first$2,500 of each occurrence,with IRMA having a mix of self-insurance and commercial insurance at various amounts above that level. The Village appoints one delegate, along with an alternate delegate, to represent the Village on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. - 45 - Village of Oak Brook, Illinois Notes to Financial Statements Note 6. Risk Management(Continued) The Village, along with IRMA's other members, has a contractual obligation to fund any deficit of IRMA attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits. No such contributions have occurred during the past three years. In addition, the Village provides medical and dental coverage to Village employees,their dependents, retirees, and employees of the Oak Brook Park District through a limited self-insurance program. Through June 30, 2007,the Village was self-insured for the first$75,000 per individual for medical claims up to a maximum limit of$2,132,292 for all individuals. As of July 1, 2007,the Village was self-insured for the first$75,000 per individual for medical claims up to a maximum limit of$2,801,172 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$1,500 per individual. The Village's self- insurance activities are reported in the Self-Insurance Fund, an Internal Service Fund. Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and other funds, retirees, the Oak Brook Park District, and COBRA participants based upon equivalent premium estimates. Liabilities are reported when it is probable that a loss has 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$150,000. A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2007 2006 Claims payable, beginning of year $ 147,000 $ 260,000 Claims incurred and changes in estimates 2,027,815 2,349,204 Claims paid (2,024,815) (2,462,204) Claims payable, end of year $ 150,000 $ 147,000 - 46 - Village of Oak Brook, Illinois Notes to Financial Statements Note 7. Long-Term Obligations Installment Contract Payable The Village has issued three installment contracts payable to provide funds for the acquisition of capital assets. The installment contracts payable currently outstanding are as follows: Fund Debt Balance Balance Due Within Retired by January 1 Additions Retirements December 31 One Year 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 September15, 2009,interest payable March 15 and September 15 of each year, Sports secured by sales and use taxes Core $ 285,000 $ $ 90,000 $ 195,000 $ 95,000 General Fund Certificates,Series 2001 dated December 1,2000, in tere st at 4.62 5%to 4.70%,d ue in annual installments ranging from $190,000 to$370,000 through December 1,2015, in tere st payabl e J une 1 and December 1 of each year,secured by sales and use taxes General 2,735,000 - 250,000 2,485,000 260,000 General Funding Refunding Certificates,Series 2003 dated June 1,2003,interest at 1.50%to 3.20%,d ue in ann ual 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 Co re 600,000 75,000 525,000 10 0,00 0 Total 3,620,000 $ - $ 415,000 $ 3,205.000 $ 455,000 - 47 - Village of Oak Brook, Illinois Notes to Financial Statements Note 7. Long-Term Obligations(Continued) Capital Lease Payable The Village has entered into a capital lease payable during fiscal year 2005 for the acquisition of its golf cart fleet for the Sports Core Fund. The acquisition included machinery and equipment in the gross amount of$276,315. 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 Due Within Retired by January 1 Additions Retirements December 31 One Year Dated March 15,2005,interest rate of 4.9%,due in monthly installments of$7,310 from May 15 through October 15 of each year through October 15, 2008,interest payable monthly from May 15 through October 15 of each year,secured by Sports equipment Core $ 82,378 $ - $ 40,183 $ 42,195 $ 42,195 Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Installment Contracts Installment Contracts Capital Lease Payable Fiscal Year Payable from Payable from Enterprise from Enterprise Ending Governmental Activities Fund Fund December 31, Principal Interest Principal Interest Principal Interest 2008 $ 260,000 $ 116,600 $ 195,000 $ 24,814 $ 42,195 $ 1,665 2009 275,000 104,575 200,000 17,730 - - 2010 285,000 91,650 100,000 10,100 - - 2011 300,000 78,255 100,000 7,100 - - 2012 315,000 64,155 125,000 4,000 - - 2013-2015 1,050,000 100,580 - - - - Totals $ 2,485,000 $ 555,815 $ 720,000 $ 63,744 $ 42,195 $ 1,665 - 48 - Village of Oak Brook, Illinois Notes to Financial Statements Note 7. Long-Term Obligations(Continued) Changes in Long-Term Liabilities During the fiscal year,the following changes occurred in long-term liabilities reported in the governmental activities: Balance Balance Due Within January 1 Additions Retirements December 31 One Year Installment contracts payable $ 2,735,000 $ - $ 250,000 $ 2,485,000 $ 260,000 Compensated absences* 935,628 846,156 841,198 940,586 840,262 Compensated absences Internal Service Fund 6,095 9,365 6,870 8,590 8,590 i Total govermental activities $ 3,676,723 $ 855,521 $ 1,098,068 $ 3,434,176 $ 1,108,852 *The compensated absences for governmental activities typically have been liquidated by the General Fund and Infrastructure Fund. During the fiscal year,the following changes occurred in long-term liabilities reported in the business-type activities: Balance Balance Due Within January 1 Additions Retirements December 31 One Year Installment contracts payable $ 885,000 $ - $ 165,000 $ 720,000 $ 195,000 Capital lease payable 82,378 - 40,183 42,195 42,195 Compensated absences 86,691 114,064 110,142 90,613 90,613 Total business-type activities $ 1,054,069 $ 114,064 $ 315,325 $ 852,808 $ 327,808 Legal Debt Margin i 2006 assessed valuation(latest information available) $ 1,578,273,191 Legal debt limit-8.625%of assessed valuation $ 136,126,063 _ Amount of debt applicable to debt limit 3,205,000 Legal debt margin $ 132,921,063 - 49 - Village of Oak Brook, Illinois Notes to Financial Statements Note 8. Interfund Accounts Advances from/to other funds Receivable Fund Payable Fund Amount General SportsCore $ 1,290,000 The purpose of this amount advanced to the Sports Core Fund from the General Fund was to finance various capital projects and operating needs during 1996-2003. Note 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. In addition,the Village may become responsible for certain legal costs associated with other lawsuits. It is possible, but not probable,that the Village will become liable for these costs. No liability,therefore, has been recorded on the financial statements for this litigation. 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. - 50 - Village of Oak Brook,Illinois Notes to Financial Statements Note 9. Contingent Liabilities (continued) Redevelopment Agreement The Village entered into a redevelopment agreement with a developer dated June 6, 2005,whereby the Village has agreed to reimburse the developer for certain costs associated with the redevelopment project within the tax increment financing(TIF)#1 Butterfield-Meyers Road Redevelopment Project Area. The agreement requires the Village to reimburse the developer up to$4,250,000, if certain requirements of the redevelopment agreement are met. The$4,250,000, if incurred,would be in the form of a note payable issued to the developer that is payable from certain incremental revenues of the TIF with interest payable at 8.00%from the date of issuance through maturity. The note is a limited obligation of the TIF area only and will be secured by the pledge of 100%of the incremental real estate taxes from the Redevelopment Project Area and 20%of the incremental sales taxes within the Redevelopment Project Area. A liability has not been recorded for the developer reimbursements as of December 31,2007 as the requirements of the redevelopment agreement have not been met and the note has not been issued. Municipal Infrastructure Maintenance Fees From January 1, 1998 through December 31,2000,the Village imposed a municipal telecommunications _ infrastructure maintenance fee(IMF)on persons in the business of transmitting, supplying or furnishing telecommunications and all associated services(e.g.,telecommunications retailers)in Illinois for the"use of public right-of-ways." The fee was authorized by state statute(35 ILCS 635). In March 2001, a wireless telecommunications provider brought action against an Illinois government challenging the constitutionality of the municipal telecommunications infrastructure maintenance fee. The Illinois Supreme Court(Court)found the IMF to be unconstitutional as applied to wireless carriers. The Court's decision held upon appeal. Potential damages to the Village under this case precedent could aggregate the total of amounts remitted to the Village for IMF by all carriers during the period from January 1, 1998 through December 31,2000. The Village has paid$126,490 to the regional settlement agreement to date but the potential liability has not been adjudicated. The Village has not estimated any additional liability under potential IMF lawsuits as of December 31, 2007. Note 10. Defined Benefit Pension Plans The Village contributes to four defined benefit pension plans,the Illinois Municipal Retirement Fund (IMRF), an agent- multiple-employer public employee retirement system;the Sheriffs Law Enforcement Personnel(also administered by IMRF, an agent multiple-employer 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 four plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. — - 51 - Village of Oak Brook, Illinois Notes to Financial Statements Note 10. Defined Benefit Pension Plans(Continued) 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 4.5%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, 2007 was 9.98%of covered payroll. Sheriffs Law Enforcement Personnel Sheriffs Law Enforcement Personnel(SLEP)having accumulated at least 20 years of SLEP service and terminating IMRF participation on or after January 1, 1988, may elect to retire at or after age 50 with no early retirement discount penalty. SLEP members meeting these two qualifications are entitled to an annual retirement benefit payable monthly for life,in an amount equal to 2'/z%of their final rate of earnings for each year of credited service up to 20 years,2%of their final earnings rate for the next 10 years of credited service and 1%for each year thereafter. For SLEP members retiring with less than 20 years of SLEP service,the regular IMRF pension formula applies. SLEP also provides death and disability benefits. These benefit provisions and all other requirements are established by Illinois compiled statute. Participating members are required to contribute 7.5%of their annual salary to SLEP. The Village is required to contribute the remaining amounts necessary to fund the SLEP as specified by statute. The employer contribution for the year ended December 31, 2007 was 11.76%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, 2007,the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 30 Terminated employees entitled to benefits but not yet receiving them 1 Current employees Vested 26 Nonvested 14 Total 71 - 52 - i Village of Oak Brook, Illinois Notes to Financial Statements Note 10. Defined Benefit Pension Plans(Continued) Plan Descriptions 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 2.50%of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75.00%of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually,following the first anniversary date of retirement and upon reaching the age of 55, by 3%of the original pension and 3%annually thereafter. If the retiree is not yet 55, no increase is made until reaching age 55, at which time the increase is one twelfth(1/12)of 3%for each full month that the retiree has been receiving a pension. Employees are required by ILLS to contribute 9.91%of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service,accumulated employee contributions may be refunded without accumulated interest. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The costs of administering the Plan are financed through investment earnings. The Village is required to contribute the remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993,the Village has until the year 2033 to fully fund the past service cost for the Police Pension Plan. For the year ended December 31, 2007,the Village's contribution was 18.53%of covered payroll. i 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 ILLS 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, 2007,the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 46 Terminated employees entitled to benefits but not yet receiving them 1 Current employees Vested 16 Nonvested 17 Total 80 - 53 - r.. Village of Oak Brook, Illinois Notes to Financial Statements Note 10. Defined Benefit Pension Plans(Continued) Plan Descriptions 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 1112 of 2.50%of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75.00%of such monthly salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually,following the first anniversary date of retirement and upon reaching at least the age of 55, by 3%of the original pension and 3%annually thereafter. If not 55, no increase is granted to the retiree until reaching age 55, at which time the increase is one twelfth(1/12)of 3%for each full month that the pension was received prior to reaching age 55. Covered employees are required to contribute 9.455%of their base salary to the Firefighters' Pension Plan. If an employee leaves covered employment with less than 20 years of service,accumulated employee contributions may be refunded without accumulated interest. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The costs of administering the Plan are financed through investment earnings. The _ Village is required to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993,the Village has until the year 2033 to fully fund the past service costs for the Firefighters' Pension Plan. For the year ended December 31,2007,the Village's contribution was 22.81%of covered payroll. Significant Investments The following are investments(other than U.S. Government guaranteed obligations)in any one organization that represent 5.00%or more of plan net assets for either the Police or the Firefighters' Pension Plans. Information for the IMRF and SLEP is not available. Plan Organization Amount Police Pension Vanguard Institutional Index Fund $ 3,141,887 Police Pension Dodge&Cox Stock Fund 2,010,720 Police Pension T. Rowe Price Growth Stock 2,009,336 $ 7,161,943 -` Plan Organization Amount Firefighters' Pension American Growth Fund $ 1,273,364 Firefighters' Pension Davis NY Venture Fund 1,329,331 Firefighters' Pension Dreman High Return Fund 1,216,202 $ 3,818,897 - 54 - Village of Oak Brook, Illinois Notes to Financial Statements _ Note 10. Defined Benefit Pension Plans(Continued) Annual Pension Costs Employer contributions have been determined as follows: Illinois Municipal Retirement and Sheriff's Law Enforcement Police Firefighters' Personnel Pension Pension Actuarial Valuation Date December 31, January 1, January 1, 2005 2008 2008 Actuarial Cost Method Entry Age Entry Age Entry Age Normal Normal Normal i Asset Valuation Method Five-Year Market Market Smoothed _ Market Amortization Method Level Percent- Level Percent- Level Percent- -. age of Payroll age of Payroll age of Payroll Amortization Period 25 Years, 26 Years, 26 Years, .. Closed Closed Closed Significant Actuarial Assumptions (a) Rate of Return on Investment of 7.50% 7.50% 7.50% Present and Future Assets Compounded Compounded Compounded Annually Annually Annually (b) Projected Salary Increases- 4.00% 5.25% 5.25% Attributable to Inflation Compounded Compounded Compounded _ Annually Annually Annually (c) Additional Projected Salary Increases-Attributable to 0.4%to 10.0% Not Available Not Available Seniority/Merit - 55 - Village of Oak Brook,Illinois Notes to Financial Statements �— Note 10. Defined Benefit Pension Plans(Continued) Annual Pension Costs Sheriff Illinois Law Fire- Calendar Municipal Enforcement Police fighters' Year Retirement Personnel Pension Pension Annual Pension Cost 2004 $ 500,558 $ 5,688 $ 449,652 $ 490,612 (APC) 2005 557,323 8,958 497,650 490,244 2006 577,112 15,562 549,750 584,388 2007 638,242 14,207 564,283 564,945 Actual contribution 2004 $ 500,558 $ 5,688 $ 449,652 $ 490,612 2005 557,323 8,958 497,650 490,244 2006 577,112 15,562 549,750 584,388 2007 638,242 14,207 564,283 564,945 Percent Contributed 2004 100.00% 100.00% 100.00% 100.00% 2005 100.00% 100.00% 100.00% 100.00% 2006 100.00% 100.00% 100.00% 100.00% 2007 100.00% 100.00% 100.00% 100.00% - 56 - Village of Oak Brook,Illinois Notes to Financial Statements Note 10. Defined Benefit Pension Plans(Continued) Summary Financial Information The following is a summary financial information for the Police and Fire Pension Plans as of December 31,2007. Pension Trust Police Firefighters' _ Pension Trust Pension Total Assets Cash $ 266,322 $ 1,241,762 $ 1,508,084 Investments Illinois Funds 27,314 136,664 163,978 Certificates of deposit 99,767 - 99,767 U.S.treasury securities 3,746,425 2,859,940 6,606,365 U.S.agency securities 10,369,490 7,868,541 18,238,031 State and local obligations 1,512,951 1,242,215 2,755,166 Mutual funds 11,592,095 9,032,721 20,624,816 Accrued interest receivable 220,852 100,927 321,779 Total assets 27,835,216 22,482,770 50,317,986 Liabilities Accounts payable 7,378 9,368 16,746 Net assets held in trust for pension plan benefits $ 27,827,838 $ 22,473,402 $ 50,301,240 - 57 - Village of Oak Brook, Illinois Notes to Financial Statements Note 10. Defined Benefit Pension Plans(Continued) Summary Financial Information(Continued) Statement of Changes in Plan Net Assets for the year ended December 31,2007: Pension Trust Police Firefighters' Pension Pension Total Additions Contributions Employer $ 564,284 $ 564,945 $ 1,129,229 Employee 301,565 244,953 546,518 865,849 809,898 1,675,747 Investment income Net appreciation in fair value of investments 1,238,040 927,994 2,166,034 Interest income 815,308 531,018 1,346,326 Less investment expenses (47,092) (29,502) (76,594) 2,006,256 1,429,510 3,435,766 Total additions 2,872,105 2,239,408 5,111,513 _ Deductions Administration 52,587 34,240 86,827 Pension benefits and refunds 1,406,063 1,299,288 2,705,351 Total deductions 1,458,650 1,333,528 2,792,178 Change in net assets 1,413,455 905,880 2,319,335 w Net assets-beginning 26,414,383 21,567,522 47,981,905 Net assets-ending $ 27,827,838 $ 22,473,402 $ 50,301,240 - 58 - Village of Oak Brook,Illinois Notes to Financial Statements Note 11. New Governmental Accounting Standards The Governmental Accounting Standards Board (GASB)has issued the following statements: Statement No.45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than — Pensions,establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities(assets), note disclosures, and if applicable, required supplementary information. This Statement will become effective for the year ending December 31,2008. Statement No.49,Accounting and Financial Reporting for Pollution Remediation Obligations, addresses accounting and financial reporting standards for pollution(including contamination)remediation obligations,which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation — activities such as site assessments and cleanups. This Statement will become effective for the year ending December 31, 2008. Statement No. 50, Pension Disclosures–an amendment to GASB Statements No.25 and No. 27. This Statement more closely aligns the financial reporting requirements for pensions with those for other postemployment benefits (OPEB)and enhances information disclosed in the notes to financial statements or presented as required supplementary information(RSI) by pension plans and by employers that provide pension benefits. This Statement will become effective for the year ending December 31, 2008. Statement No. 51,Accounting and Financial Reporting for Intangible Assets,which establishes accounting and financial reporting requirements for intangible assets. All intangible assets not specifically excluded by the scope of this Statement should be classified as capital assets. All existing authoritative guidance for capital assets should be _ applied to these intangible assets, as applicable. This Statement will become effective for the year ending December 31,2010. Statement No.52, Land and Other Real Estate Held as Investments by Endowments,establishes consistent standards for the reporting of land and other real estate held as investments. It requires endowments to report their land and other real estate investments at fair value. This Statement will become effective for the year ending December 31, 2009. — Management has not currently determined what impact, if any,these Statements may have on its financial statements. - - - 59 - REQUIRED SUPPLEMENTARY INFORMATION Village of Oak Brook, Illinois Required Supplementary Information Schedule of Revenues, Expenditures,and Changes in Fund Balance - Budget and Actual-General Fund Year Ended December 31,2007 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $ 13,025,500 $ 13,025,500 $ 12,788,916 $ (236,584) Utility taxes 4,071,000 4,071,000 4,247,675 176,675 Licenses and permits 936,915 936,915 850,965 (85,950) Charges for services 844,550 844,550 832,008 (12,542) Fines and penalties 332,500 332,500 375,717 43,217 Investment income 475,000 475,000 548,281 73,281 Donations 17,000 17,000 45,150 28,150 Miscellaneous 266,695 266,695 281,864 15,169 Total revenues 19,969,160 19,969,160 19,970,576 1,416 Expenditures Current General government 5,560,475 5,643,085 5,529,429 113,656 Public safety 12,477,745 12,462,745 12,109,588 353,157 Public works 632,325 612,525 556,862 55,663 Culture and recreation 1,407,655 1,407,655 1,355,451 52,204 Total expenditures 20,078,200 20,126,010 19,551,330 574,680 Net change in fund balance $ (109,040) $ (156,850) 419,246 $ 576,096 Fund balance-beginning 13,023,949 Fund balance-ending $ 13,443,195 See Note to Required Supplementary Information. -60- Village of Oak Brook,Illinois Required Supplementary Information Analysis of Funding Progress December 31,2007 Illinois Municipal Retirement Fund UAAL as a (1) (2) (2)—(1) Percentage of Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2007 $ 13,391,125 $ 15,455,482 $ 2,064,357 86.64 % $ 6,395,211 32.28 % ^ 2006 12,350,563 14,160,884 1,810,321 87.22 6,036,741 29.99 2005 11,795,220 13,314,605 1,519,385 88.59 5,829,743 26.06 2004 10,795,206 12,381,519 1,586,313 87.19 5,707,616 27.79 On a market value basis,the actuarial value of assets as of December 31,2007 is$14,320,179. On a market basis,the funded ratio would be 92.65%. Digest of Changes The actuarial assumptions used to determine the actuarial accrued liability for 2007 are based on the 2002-2004 Experience Study. The principal changes were: The 1994 Group Annuity Mortality implemented. For Regular members,fewer normal and more early retirements are expected to occur. Sheriff's Law Enforcement Personnel UAAL as a (1) (2) (2)—(1) Percentage of _ Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)13) 2007 $ 64,632 $ 28,962 $ (35,670) 223.16 % $ 120,808 (29.53) 2006 40,982 4,052 (36,930) 1,011.40 115,531 (31.97) 2005 17,968 (17,180) (35,148) (104.59) 66,502 (52.85) 2004 7,999 (4,983) (12,982) (160.53) 42,231 (30.74) On a market value basis,the actuarial value of assets as of December 31,2007 is$67,437. On a market basis,the funded ratio _ would be 232.85%. Digest of Changes The actuarial assumptions used to determine the actuarial accrued liability for 2007 are based on the 2002-2004 Experience Study. The principal changes were: The 1994 Group Annuity Mortality implemented. -For Regular members,fewer normal and more early retirements are expected to occur. ^ -61 - Village of Oak Brook,Illinois Required Supplementary Information Analysis of Funding Progress(continued) December 31,2007 Police Pension Fund UAAL as a (1) (2) (2)–(1) Percentage of Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2007 $ 27,827,838 $ 32,129,429 $ 4,301,591 86.61 % $ 3,180,282 135.26 % 2006 26,414,388 30,625,818 4,211,430 86.25 3,162,857 133.15 2005 24,752,561 28,683,431 3,930,870 86.30 2,984,609 131.70 2004 24,157,442 27,106,938 2,949,496 89.12 2,808,631 105.02 2003 22,790,550 25,499,316 2,708,766 89.38 2,854,299 94.90 2002 20,521,085 23,581,098 3,060,013 87.02 2,736,034 111.84 Firefighters'Pension Fund '— UAAL as a (1) (2) (2)–(1) Percentage of Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2007 $ 22,473,402 $ 28,968,184 $ 6,494,782 77.58 % $ 2,582,069 251.53 2006 21,567,521 27,373,120 5,805,599 78.79 2,563,057 226.51 2005 20,053,194 26,016,602 5,963,408 77.08 2,439,899 244.41 2004 19,395,277 24,131,120 4,735,843 80.37 2,298,601 206.03 2003 18,254,770 22,439,963 4,185,193 81.35 2,156,811 194.05 2002 16,240,617 20,878,039 4,637,422 77.79 2,222,646 208.64 -62- Village of Oak Brook, Illinois Required Supplementary Information Employer Contributions December 31, 2007 Illinois Municipal Retirement Fund Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed 2007 $ 638,242 $ 638,242 100 % 2006 577,112 577,112 100 2005 557,323 557,323 100 2004 500,558 500,558 100 Sheriffs Law Enforcement Personnel Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed _ 2007 $ 14,207 $ 14,207 100 % 2006 15,562 15,562 100 2005 8,958 8,958 100 2004 5,688 5,688 100 Police Pension Fund Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed ' 2007 $ 564,283 $ 564,283 100 % 2006 549,750 549,750 100 _ 2005 497,650 497,650 100 2004 449,652 449,652 100 2003 483,197 483,197 100 _ 2002 338,565 338,565 100 Firefighters'Pension Fund Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed _ 2007 $ 564,945 $ 564,945 100 % 2006 584,388 584,388 100 2005 490,244 490,244 100 2004 490,612 490,612 100 2003 481,887 481,887 100 2002 417,022 417,022 100 -63- ` Village of Oak Brook, Illinois Note to Required Supplementary Information Note 1. Budgetary Basis of Accounting 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 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 exception 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. -64- w MAJOR GOVERNMENTAL FUNDS MAJOR GOVERNMENTAL FUNDS General Fund—to account for resources traditionally associated with governments which are not required to be accounted for in another fund. Infrastructure Fund—to account for revenues and expenditures relative to the construction and maintenance of roadways, drainage and safety pathway systems. Village of Oak Brook,Illinois General Fund Schedule of Revenues-Budget and Actual Year Ended December 31,2007 2007 Variance with ._ Original and Final Budget Final Positive 2006 Budget Actual (Negative) Actual Intergovernmental Municipal sales tax $ 11,770,000 $ 11,396,397 $ (373,603) $ 11,461,184 Illinois state income and use tax 838,000 886,496 48,496 823,336 Corporate personal property replacement taxes 284,000 322,979 38,979 275,162 York Township road and bridge tax 33,500 35,498 1,998 33,636 Grants 100,000 147,546 47,546 76,556 Total intergovernmental 13,025,500 12,788,916 (236,584) 12,669,874 Utility taxes 4,071,000 4,247,675 176,675 3,822,020 Licenses and permits 936,915 850,965 (85,950) 858,401 Charges for services 844,550 832,008 (12,542) 835,390 Fines and penalties 332,500 375,717 43,217 292,331 Investment income 475,000 548,281 73,281 468,441 Donations 17,000 45,150 28,150 25,311 Miscellaneous Franchise fees 112,000 123,217 11,217 108,713 Other 154,695 158,647 3,952 81,512 Total miscellaneous 266,695 281,864 15,169 190,225 Total revenues $ 19 969160 $ 19,970 576 $ 1,416 $ 19,161,993 -65- "' Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual General government Legislative and general management Board of trustees Personnel $ 103,195 $ 73,195 $ 69,294 $ 3,901 $ 59,705 .�. Materials and supplies 3,100 3,100 1,944 1,156 1,750 Operation and contractual 124,060 69,060 66,842 2,218 61,113 Total board of trustees 230,355 145,355 138,080 7,275 122,568 Village clerk Personnel 229,355 204,355 203,576 779 185,509 Materials and supplies 1,780 1,780 2,601 (821) 1,205 Operation and contractual 21,685 13,685 12,160 1,525 18,326 Capital 40,000 12,000 11,658 342 - Total village clerk 292,820 231,820 229,995 1,825 205,040 Legal Personnel 16,740 16,740 18,732 (1,992) 16,074 Materials and supplies 155 155 61 94 131 Operation and contractual 294,000 600,015 596,536 3,479 354,949 Total legal 310,895 616,910 615,329 1,581 371,154 General management Personnel 368,735 255,405 254,447 958 341,912 Materials and supplies 2,095 2,095 1,061 1,034 1,093 Operation and contractual 12,705 24,520 25,902 (1,382) 9,515 Total general management 383,535 282,020 281,410 610 352,520 Human resources Personnel 106,965 101,465 103,350 (1,885) 100,364 Materials and supplies 1,250 1,250 1,028 222 444 Operation and contractual 134,000 168,600 166,873 1,727 97,810 Total human resources 242,215 271,315 271,251 64 198,618 _ Risk management Personnel 58,510 55,860 49,438 6,422 54,634 Operation and contractual 570,000 552,650 552,633 17 579,143 Total risk management 628,510 608,510 602,071 6,439 633,777 (Continued) -66- Village of Oak Brook,Illinois -� General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual -• General government(continued) Legislative and general management(continued) Emergency management Personnel $ 2,175 $ 2,175 $ - $ 2,175 $ 1,623 Materials and supplies 3,700 3,700 1,600 2,100 3,109 Operation and contractual 21,500 9,300 9,298 2 10,252 Capital 10,500 2,700 - 2,700 - Total emergency management 37,875 17,875 10,898 6,977 14,984 Business licenses 32,600 12,225 7,007 5,218 22,269 Economic development 22,500 17,875 - 17,875 5,000 General services Personnel 69,410 60,310 58,563 1,747 56,063 Materials and supplies 59,575 59,575 57,964 1,611 52,503 Operation and contractual 9,600 9,600 8,358 1,242 5,923 Capital 25,000 25,000 20,913 4,087 23,071 Total general services 163,585 154,485 145,798 8,687 137,560 Purchasing _ Personnel 149,695 149,695 148,770 925 142,893 Materials and supplies 1,025 1,025 635 390 617 Operation and contractual 1,800 1,800 779 1,021 1,848 Total purchasing 152,520 152,520 150,184 2,336 145,358 Information systems Personnel 416,640 430,640 432,947 (2,307) 399,666 Materials and supplies 15,350 22,850 24,155 (1,305) 20,941 Operation and contractual 351,110 329,110 304,102 25,008 338,088 Capital 242,410 285,210 242,817 42,393 368,364 Total information systems 1,025,510 1,067,810 1,004,021 63,789 1,127,059 Community events Operation and contractual 12,000 42,510 81,427 (38,917) 20,076 Total legislative and general management 3,534,920 3,621,230 3,537,471 83,759 3,355,983 (Continued) -67- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) _ Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual General government(continued) Community development management Personnel $ 254,250 $ 254,250 $ 257,545 $ (3,295) $ 246,086 Materials and supplies 1,375 1,375 815 560 1,008 Operation and contractual 130,150 186,050 178,176 7,874 24,810 Total community development management 385,775 441,675 436,536 5,139 271,904 r.. Code enforcement Personnel 373,135 373,135 370,777 2,358 290,349 Materials and supplies 2,650 2,650 2,509 141 2,190 Operation and contractual 35,515 34,515 31,212 3,303 40,807 Total code enforcement 411,300 410,300 404,498 5,802 333,346 Total community development management 797,075 851,975 841,034 10,941 605,250 Financial services Financial services management Personnel 160,410 160,410 160,352 58 151,983 Materials and supplies 900 900 491 409 855 Operation and contractual 24,500 24,500 18,843 5,657 20,891 Total financial services management 185,810 185,810 179,686 6,124 173,729 Accounting and reporting Personnel 375,275 375,275 368,083 7,192 347,787 Materials and supplies 7,610 7,610 7,839 (229) 5,197 Operation and contractual 27,520 27,520 25,549 1,971 22,793 Total accounting and reporting 410,405 410,405 401,471 8,934 375,777 '- Debt service Other 378,765 378,765 378,463 302 374,631 Total financial services 974,980 974,980 959,620 15,360 924,137 (Continued) -68- Village of Oak Brook,Illinois ... General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual General government(continued) Engineering and capital projects Municipal building improvements Operation and contractual $ 18,500 $ 14,800 $ 11,568 $ 3,232 $ 28,614 Capital 169,000 114,100 113,736 364 62,820 Total engineering and capital projects 187,500 128,900 125,304 3,596 91,434 _ Reimbursement of other funds expenditures 314,600 314,600 314,600 - 314,200 Subtotal general government 5,809,075 5,891,685 5,778,029 113,656 5,291,004 Less reimbursements from other funds (248,600) (248,600) (248,600) - (238,200) Total general government 5,560,475 5,643,085 5,529,429 113,656 5,052,804 -� Public safety Police department Police services management Personnel 450,525 453,525 453,494 31 449,267 Materials and supplies 3,500 3,500 2,429 1,071 3,767 Operation and contractual 66,300 117,300 109;670 7,630 151,298 _ Total police services management 520,325 574,325 565,593 8,732 604,332 Police field services Personnel 3,647,200 3,717,200 3,680,384 36,816 3,602,365 .. Materials and supplies 65,050 89,000 87,971 1,029 75,479 Operation and contractual 335,250 323,780 320,774 3,006 385,435 Capital 25,000 25,000 24,544 456 31,556 Total police field services 4,072,500 4,154,980 4,113,673 41,307 4,094,835 Police general support Personnel 397,885 425,635 381,512 44,123 307,239 Materials and supplies 31,540 31,540 26,410 5,130 19,942 Operation and contractual 4,495 4,495 1,667 2,828 643 Total police general support 433,920 461,670 409,589 52,081 327,824 (Continued) -69- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Public safety(continued) Police department(continued) Police investigations Personnel $ 806,820 $ 641,335 $ 582,497 $ 58,838 $ 540,752 Materials and supplies 13,625 13,625 11,680 1,945 6,956 Operation and contractual 21,605 21,605 19,052 2,553 32,812 Total police investigations 842,050 676,565 613,229 63,336 580,520 Police communications center Personnel 891,495 875,195 828,570 46,625 754,183 Materials and supplies 14,295 14,295 6,487 7,808 3,010 Operation and contractual 48,570 36,090 23,191 12,899 38,969 Capital 30,000 46,300 46,211 89 330 Total police communications center 984,360 971,880 904,459 67,421 796,492 Police records Personnel 175,395 184,130 183,133 997 166,813 Materials and supplies 11,100 11,100 9,357 1,743 7,751 Operation and contractual 8,200 8,200 8,770 (570) 8,239 Total police records 194,695 203,430 201,260 2,170 182,803 Public relations/crime prevention Personnel - - - - 195,564 Materials and supplies 3,659 Operation and contractual - 3,376 Total public relations/crime prevention - - - - 202,599 Total police department 7,047,850 7,042,850 6,807,803 235,047 6,789,405 Fire Department Fire and EMS general salaries Personnel 3,797,140 3,768,340 3,691,481 76,859 3,628,014 (Continued) -70- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Public safety(continued) Fire department(continued) Fire services management Personnel $ 402,375 $ 402,375 $ 393,385 $ 8,990 $ 377,570 Materials and supplies 3,150 3,150 1,356 1,794 2,037 Operation and contractual 15,225 15,225 10,180 5,045 12,648 Total fire services management 420,750 420,750 404,921 15,829 392,255 Rescue and fire operation Personnel 9,530 9,530 7,341 2,189 8,162 Materials and supplies 56,150 63,150 60,489 2,661 61,820 Operation and contractual 248,605 248,605 234,362 14,243 310,780 Capital 71,000 71,000 70,125 875 9,991 Total rescue and fire operation 385,285 392,285 372,317 19,968 390,753 Special teams operations Materials and supplies 10,000 10,000 10,204 (204) 10,728 ... Operation and contractual 7,850 7,850 6,590 1,260 8,347 Total special teams operations 17,850 17,850 16,794 1,056 19,075 Rescue and fire training Personnel 27,000 38,800 38,710 90 16,295 Materials and supplies - - 10 (10) - Total rescue and fire training 27,000 38,800 38,720 80 16,295 Emergency medical services Personnel 51,830 51,830 52,848 (1,018) 48,963 Materials and supplies 16,755 16,755 16,995 (240) 15,916 Operation and contractual 497,455 497,455 498,211 (756) 513,131 Capital 22,000 22,000 20,117 1,883 - Total emergency medical services 588,040 588,040 588,171 (131) 578,010 (Continued) -71- Village of Oak Brook,Illinois ` General Fund Schedule of Expenditures•Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Public safety(continued) Fire department(continued) Prevention and public education Personnel $ 176,575 $ 176,575 $ 174,104 $ 2,471 $ 160,392 Materials and supplies 3,830 3,830 2,151 1,679 2,028 Operation and contractual 13,425 13,425 13,126 299 14,500 Total prevention and public education 193,830 193,830 189,381 4,449 176,920 Total fire department 5,429,895 5,419,895 5,301,785 118,110 5,201,322 Total public safety 12,477,745 12,462,745 12,109,588 353,157 11,990,727 Public works Mosquito control Operational and contractual 92,170 72,370 72,347 23 87,780 Buildings and grounds Personnel 77,275 88,025 85,072 2,953 74,472 Materials and supplies 48,280 48,280 44,048 4,232 31,813 Operation and contractual 207,000 237,315 224,172 13,143 179,537 Capital outlay 11,000 11,000 8,760 2,240 - Total buildings and grounds 343,555 384,620 362,052 22,568 285,822 Forestry Personnel 15,775 15,775 11,673 4,102 10,340 Materials and supplies 5,545 5,545 2,372 3,173 6,393 Operation and contractual 167,930 130,415 108,418 21,997 263,891 Capital 7,350 3,800 - 3,800 - Total forestry 196,600 155,535 122,463 33,072 280,624 Total public works 632,325 612,525 556,862 55,663 654,226 (Continued) -72- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) ... Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Culture and recreation Library general operations Personnel $ 438,005 $ 434,505 $ 435,208 $ (703) $ 412,302 Materials and supplies 22,515 26,015 25,104 911 92,991 Operation and contractual 118,470 118,470 103,485 14,985 117,244 Capital 17,000 17,000 565 16,435 - _ Total library general operations 595,990 595,990 564,362 31,628 622,537 Library technical services Personnel 183,530 183,530 169,181 14,349 171,778 Materials and supplies 6,860 6,860 6,846 14 6,754 Operation and contractual 9,045 9,045 8,728 317 8,401 Total library technical services 199,435 199,435 184,755 14,680 186,933 Library reference and adult services Personnel 201,085 201,085 197,534 3,551 183,719 Materials and supplies 141,950 141,950 141,993 (43) 137,876 Operation and contractual 7,635 7,635 7,635 - 7,481 Total library reference and adult services 350,670 350,670 347,162 3,508 329,076 Library youth services Personnel 202,750 202,750 200,366 2,384 188,762 Materials and supplies 52,710 52,710 52,787 (77) 50,119 Operation and contractual 6,100 6,100 6,019 81 5,925 Total library youth services 261,560 261,560 259,172 2,388 244,806 Total culture and recreation 1,407,655 1,407,655 1,355,451 52,204 1,383,352 Total expenditures $ 20,078,200 $ 20,126,010 $ 19,551,330 $ 574,680 $ 19,081,109 -73- Village of Oak Brook,Illinois Infrastructure Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Revenues Intergovernmental-grants $ 112,200 $ 112,200 $ 10,045 $ (102,155) $ 24,158 Non-home rule sales tax 2,691,000 2,691,000 2,618,565 (72,435) 2,641,030 Investment income 25,000 25,000 81,894 56,894 66,335 Total revenues 2,828,200 2,828,200 2,710,504 (117,696) 2,731,523 Expenditures Public works Management Personnel 352,960 352,960 350,849 2,111 338,749 Materials and supplies 9,830 9,830 1,024 8,806 1,373 Operation and contractual 98,720 89,720 84,911 4,809 81,258 Capital outlay 7,000 7,000 6,568 432 - Total management 468,510 459,510 443,352 16,158 421,380 Streets-general salaries Personnel 682,835 691,835 686,834 5,001 643,957 Materials and supplies 5,380 5,380 3,141 2,239 3,047 Operation and contractual 2,160 2,160 1,771 389 2,785 Total streets-general salaries 690,375 699,375 691,746 7,629 649,789 Streets and traffic maintenance _ Materials and supplies 33,910 33,910 19,338 14,572 21,705 Operation and contractual 325,265 325,265 304,027 21,238 234,118 Capital outlay 19,600 19,600 - 19,600 - Total streets and traffic maintenance 378,775 378,775 323,365 55,410 255,823 Snow removal Personnel 55,775 55,775 56,531 (756) 15,815 Materials and supplies 58,540 83,540 82,501 1,039 15,702 Operation and contractual 66,120 66,120 62,488 3,632 54,661 Capital outlay 10,000 10,000 - 10,000 14,395 Total snow removal 190,435 215,435 201,520 13,915 100,573 Drainage maintenance Materials and supplies 4,025 4,025 1,610 2,415 1,698 Operation and contractual 59,370 59,370 52,352 7,018 50,423 Total drainage maintenance 63,395 63,395 53,962 9,433 52,121 (Continued) -74- Village of Oak Brook,Illinois Infrastructure Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Expenditures(continued) Public works(continued) Safety pathway maintenance Materials and supplies $ 23,975 $ 23,975 $ 23,912 $ 63 $ 1,185 Operation and contractual 55,215 30,215 21,900 8,315 20,340 Capital outlay 27,000 27,000 23,275 3,725 - Total safety pathway maintenance 106,190 81,190 69,087 12,103 21,525 Engineering and capital projects Engineering Personnel 444,205 444,205 442,925 1,280 421,796 Materials and supplies 3,160 3,160 1,767 1,393 1,715 Operation and contractual 27,320 19,320 13,937 5,383 23,849 Capital outlay 44,000 44,000 17,190 26,810 - Total engineering 518,685 510,685 475,819 34,866 447,360 Roadway improvements _ Operation and contractual 122,000 84,360 69,405 14,955 103,965 Capital outlay 1,994,735 1,994,735 870,672 1,124,063 838,652 Total roadway improvements 2,116,735 2,079,095 940,077 1,139,018 942,617 Stormwater management improvements Operation and contractual 6,000 14,000 13,595 405 3,580 Capital outlay 30,000 20,445 - 20,445 2,535 Total stormwater management improvements 36,000 34,445 13,595 20,850 6,115 Safety pathway improvements Operation and contractual 12,625 12,625 12,557 68 11,172 Capital outlay 259,700 306,895 297,228 9,667 - Total safety pathway improvements 272,325 319,520 309,785 9,735 11,172 Subtotal expenditures 4,841,425 4,841,425 3,522,308 1,319,117 2,908,475 "" Less reimbursements from other funds (1,003,300) (1,003,300) (1,003,300) - (399,414) Total expenditures 3,838,125 3,838,125 2,519,008 1,319,117 2,509,061 Excess(deficiency)of revenues over expenditures (1,009,925) (1,009,925) 191,496 1,201,421 222,462 _ Net change in fund balance $ (1,009,925) $ (1,009,925) 191,496 $ 1,201,421 222,462 Fund balance-beginning 1,919,422 1,696,960 Fund balance-ending _$ 2,110,918 _L_1219,422 -75- NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Hotel/Motel Tax Fund—to account for local hotel/motel tax receipts restricted for promoting tourism and conventions in the Village. Motor Fuel Tax Fund—to account for State Gasoline Tax Allocations restricted for local roadway program expenditures. Foreign Fire Insurance Tax Fund—to account for Foreign Fire Insurance tax revenue restricted for the purchase of items for the benefit of the fire department. Capital Projects Fund Promenade T.I.F. Fund—to account for the revenues and expenditures relative to the Tax Increment Financing district located at 22nd and Meyers Road. Village of Oak Brook, Illinois Nonmajor Governmental Funds Combining Balance Sheet December 31,2007 — Nonmajor Funds Special Revenue Funds Capital Total — Foreign Fire Projects Fund Nonmajor Hotel/Motel Motor Fuel Insurance Promenade Governmental Tax Tax Tax T.I.F. Funds — Assets Cash and investments $ 1,018,647 $ 136,357 $ 114,547 $ 17,407 $ 1,286,958 — Receivables Allotments - 20,233 - - 20,233 Other, hotel/motel tax 112,574 - - - 112,574 Total assets $ 1,131,221 $ 156,590 $ 114,547 $ 17,407 $ 1,419,765 Liabilities Accounts payable $ 36,888 $ - $ - $ - $ 36,888 — Fund Balances Unreserved 1,094,333 156,590 114,547 17,407 1,382,877 Total liabilities and fund balances $ 1,131,221 $ 156,590 $ 114,547 $ 17,407 $ 1,419,765 -76- Village of Oak Brook, Illinois Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31,2007 Nonmajor Funds Special Revenue Funds Capital Total Foreign Fire Projects Fund Nonmajor Hotel/Motel Motor Fuel Insurance Promenade Governmental Tax Tax Tax T.I.F. Funds Revenues _ Intergovernmental $ - $ 248,577 $ 57,832 $ 2,665 $ 309,074 Hotel/motel taxes 1,262,808 - - - 1,262,808 Investment income 28,259 22,882 662 750 52,553 - Total revenues 1,291,067 271,459 58,494 3,415 1,624,435 Expenditures Public safety - - 46,715 - 46,715 Public works - 600,000 - - 600,000 Culture and recreation 389,737 - - 1,164 390,901 Total expenditures 389,737 600,000 46,715 1,164 1,037,616 Net change in fund balances 901,330 (328,541) 11,779 2,251 586,819 Fund balances-beginning 193,003 485,131 102,768 15,156 796,058 Fund balances-ending $ 1,094,333 $ 156,590 $ 114,547 $ 17,407 $ 1,382,877 -77- Village of Oak Brook, Illinois Hotel/Motel Tax Fund _ Schedule of Revenues, Expenditures,and Changes in Fund Balance —Budget and Actual Year Ended December 31,2007 2007 Variance with _ Original and Final Budget Final Positive 2006 Budget Actual (Negative) Actual _ Revenues Hotel/motel taxes $ 1,035,000 $ 1,262,808 $ 227,808 $ 416,507 _ Investment income 12,000 28,259 16,259 9,568 Total revenues 1,047,000 1,291,067 244,067 426,075 Expenditures Current Culture and recreation 948,800 389,737 559,063 472,162 Total expenditures 948,800 389,737 559,063 472,162 Net change in fund balance $ 98,200 901,330 $ 803,130 (46,087) Fund balance-beginning 193,003 239,090 Fund balance-ending $ 1,094,333 $ 193,003 -78- Village of Oak Brook, Illinois Motor Fuel Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance —Budget and Actual Year Ended December 31, 2007 2007 _ Variance with Original and Final Budget Final Positive 2006 Budget Actual (Negative) Actual Revenues Intergovernmental $ 254,000 $ 248,577 $ (5,423) $ 250,481 Investment income 10,000 22,882 12,882 17,131 Total revenues 264,000 271,459 7,459 267,612 Expenditures Current Public works 600,000 600,000 - 30,914 Net change in fund balance $ (336,000) (328,541) $ 7,459 236,698 Fund balance-beginning 485,131 248,433 Fund balance-ending $ 156,590 $ 485,131 -79- Village of Oak Brook, Illinois — Foreign Fire Insurance Tax Fund _ Schedule of Revenues, Expenditures, and Changes in Fund Balance –Budget and Actual Year Ended December 31, 2007 — 2007 — Variance with Original and Final Budget Final Positive 2006 Budget Actual (Negative) Actual Revenues Intergovernmental $ 37,360 $ 57,832 $ 20,472 $ 37,357 Investment income 500 662 162 780 _ Total revenues 37,860 58,494 20,634 38,137 Expenditures Current Public safety 54,100 46,715 7,385 57,094 Net change in fund balance $ (16,240) 11,779 $ 28,019 (18,957) Fund balance-beginning 102,768 121,725 — Fund balance-ending $ 114,547 $ 102,768 -80- — Village of Oak Brook, Illinois Promenade T.I.F. Fund Schedule of Revenues, Expenditures,and Changes in Fund Balance —Budget and Actual Year Ended December 31, 2007 2007 Variance with Original and Final Budget Final Positive Budget Actual (Negative) 2006 Revenues Intergovernmental $ 76,600 $ 2,665 $ (73,935) $ 14,821 Investment income 300 750 450 335 Total revenues 76,900 3,415 (73,485) 15,156 Expenditures Current Culture and recreation 15,000 1,164 13,836 - Net change in fund balance $ 61,900 2,251 $ (87,321) 15,156 Fund balance-beginning 15,156 - Fund balance-ending $ 17,407 $ 15,156 -81 - _ PROPRIETARY FUNDS MAJOR ENTERPRISE FUNDS Waterworks System Fund—to account for revenues and expenses relative to the operation of the water utility. Sports Core Fund—to account for revenues and expenses relative to the operation of the Oak Brook Sports Core. Village of Oak Brook,Illinois Waterworks System Fund Schedule of Revenues,Expenses and Changes in Net Assets- Budget and Actual Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Operating revenues Charges for services Water sales $ 4,758,300 $ 4,758,300 $ 4,414,759 $ (343,541) $ 4,236,693 Unmetered sales 27,000 27,000 25,188 (1,812) 28,413 Water tap on charges 65,000 65,000 49,220 (15,780) 76,584 Meter fees and special services 37,720 37,720 86,103 48,383 43,792 Miscellaneous 400,000 400,000 63,855 (336,145) 42,487 Total operating revenues 5,288,020 5,288,020 4,639,125 (648,895) 4,427,969 Operating expenses Operation of facilities 4,117,140 4,117,140 4,020,178 96,962 3,501,887 Depreciation and amortization 2,533,560 2,533,560 423,319 2,110,241 455,188 Total operating expenses 6,650,700 6,650,700 4,443,497 2,207,203 3,957,075 Operating income(loss) (1,362,680) (1,362,680) 195,628 1,558,308 470,894 Nonoperating revenues Investment income 100,000 100,000 282,306 182,306 176,624 DuPage Water Commission Rebate - - 756,722 756,722 - Total nonoperating revenues 100,000 100,000 1,039,028 939,028 176,624 Changes in net assets $ (1,262,680) $ (1,262,680) 1,234,656 $ 2,497,336 647,518 Net assets-beginning 16,679,277 16,031,759 Net assets-ending $ 17,913,933 $ 16,679,277 -82- Village of Oak Brook,Illinois Waterworks System Fund Schedule of Operating Expenses-Budget and Actual Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Operating expenses excluding depreciation Operating of facilities _ Public works-water operations Personnel $ 676,625 $ 709,625 $ 709,221 $ 404 $ 635,522 Materials and supplies 86,420 107,020 128,280 (21,260) 111,819 Operation and contractual 2,944,095 2,890,495 2,772,677 117,818 2,360,546 Reimbursements for governmental services 410,000 410,000 410,000 - 394,000 Total public works-water operations 4,117,140 4,117,140 4,020,178 96,962 3,501,887 Capital improvements Capital outlay 2,533,560 2,533,560 1,084,187 1,449,373 425,467 Total operating expenses (excluding depreciation)- budgetary basis $ 6,650,700 $ 6,650,700 5,104,365 $ 1,546,335 3,927,354 Adjustments to GAAP basis Capital expenditures (1,084,187) (425,467) Depreciation and amortization expense 423,319 455,188 Total adjustments to GAAP basis (660,868) 29,721 Total operating expenses $ 4,443,497 $ 3,957,075 -83- Village of Oak Brook,Illinois Sports Core Fund — Schedule of Revenues,Expenses and Changes in Net Assets- Budget and Actual Year Ended December 31,2007 — 2007 — Variance with Final Budget Original Final Positive 2006 _ Budget Budget Actual (Negative) Actual Operating revenues _ Charges for services Golf $ 2,321,800 $ 2,321,800 $ 2,251,984 $ (69,816) $ 2,147,542 Bath and tennis 294,525 294,525 321,087 26,562 319,242 _ Food and beverage 1,161,725 1,161,725 1,201,926 40,201 1,096,637 Total operating revenues 3,778,050 3,778,050 3,774,997 (3,053) 3,563,421 Operating expenses Golf club 1,747,455 1,785,055 1,686,427 98,628 1,677,247 Bath and tennis 701,395 702,655 561,489 141,166 566,004 Food and beverage 1,094,630 1,136,180 1,126,503 9,677 1,098,949 — Depreciation - - 314,559 (314,559) 313,860 Total operating expenses 3,543,480 3,623,890 3,688,978 (65,088) 3,656,060 Operating income(loss) 234,570 154,160 86,019 (68,141) (92,639) Nonoperating revenues(expenses) Investment income 15,000 15,000 26,811 11,811 22,313 Interest expense (30,760) (30,760) (29,302) 1,458 (34,811) Total nonoperating revenues (expenses) (15,760) (15,760) (2,491) 13,269 (12,498) Changes in net assets $ 218,810 $ 138,400 83,528 $ (54,872) (105,137) Net assets-beginning 11,189,921 11,295,058 Net assets-ending $ 11,273,449 $ 11,189,921 -84- —' Village of Oak Brook, Illinois Sports Core Fund Schedule of Operating Revenues- Budget and Actual Year Ended December 31, 2007 2007 _ Variance with Original and Final Budget Final Positive 2006 Budget Actual (Negative) Actual Charges for services Golf Fees $ 1,666,975 $ 1,625,624 $ (41,351) $ 1,524,128 Golf surcharge 69,750 65,341 (4,409) 63,822 Memberships 336,175 288,822 (47,353) 314,725 Merchandise sales 248,900 272,197 23,297 244,867 Total golf 2,321,800 2,251,984 (69,816) 2,147,542 Bath and tennis Fees 124,575 131,619 7,044 123,275 Memberships 166,350 188,062 21,712 191,054 Merchandise sales 1,100 1,097 (3) 896 Miscellaneous 2,500 309 (2,191) 4,017 Total bath and tennis 294,525 321,087 26,562 319,242 - Food and beverage Food sales 679,200 693,086 13,886 637,432 Beverage sales 365,300 406,108 40,808 342,122 Miscellaneous 117,225 102,732 (14,493) 117,083 Total food and beverage 1,161,725 1,201,926 40,201 1,096,637 Total operating revenues $ 3,778,050 $ 3,774,997 $ (3,053) $ 3,563,421 -85- Village of Oak Brook,Illinois Sports Core Fund Schedule of Operating Expenses-Budget and Actual - Year Ended December 31,2007 2007 - Variance with Final Budget Original Final Positive 2006 - Budget Budget Actual (Negative) Actual Operating expenses excluding depreciation Operations-golf club - Golf club general operations Personnel $ 470,230 $ 470,230 $ 461,629 $ 8,601 $ 466,739 Materials and supplies 232,300 255,300 245,333 9,967 219,137 - Operation and contractual 195,890 195,890 183,219 12,671 182,742 Total golf club general operations 898,420 921,420 890,181 31,239 868,618 Golf club range operations Personnel 55,645 55,645 51,274 4,371 51,782 Materials and supplies 20,000 20,000 10,806 9,194 8,384 - Operation and contractual 13,700 13,700 13,149 551 10,479 Total golf club range operations 89,345 89,345 75,229 14,116 70,645 Golf cart operations Personnel 27,270 27,270 32,770 (5,500) 22,677 Materials and supplies 3,400 3,400 192 3,208 2,307 Operation and contractual 51,130 51,130 11,646 39,484 11,316 - Totalgolfcartoperations 81,800 81,800 44,608 37,192 36,300 Golf course maintenance Personnel 478,510 478,510 476,757 1,753 475,400 Materials and supplies 166,730 181,330 185,648 (4,318) 194,489 Operation and contractual 32,650 32,650 14,004 18,646 31,795 _ Debt service-principal 90,000 90,000 90,000 - 85,000 Total golf course maintenance 767,890 782,490 766,409 16,081 786,684 Total operations-golf club 1,837,455 1,875,055 1,776,427 98,628 1,762,247 Operations-bath and tennis _ General operations-Sports Core,Polo and Open Fields Personnel 291,455 289,455 236,469 52,986 235,452 Materials and supplies 48,050 52,600 18,176 34,424 4,877 - Operation and contractual 142,530 144,790 117,162 27,628 138,400 Total general operations 482,035 486,845 371,807 115,038 378,729 (Continued) -86- Village of Oak Brook,Illinois Sports Core Fund Schedule of Operating Expenses-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual -- Operating expenses excluding depreciation (continued) Operations -bath and tennis(continued) Swimming operations Personnel $ 7,535 $ 7,535 $ 8,769 $ (1,234) $ 6,037 Materials and supplies 19,250 12,650 11,695 955 13,105 Operation and contractual 103,800 108,850 93,361 15,489 89,916 Total swimming operations 130,585 129,035 113,825 15,210 109,058 _ Tennis operations-outdoor Personnel 71,050 71,050 63,607 7,443 66,799 Materials and supplies 6,200 4,200 4,474 (274) 4,221 Operation and contractual 11,525 11,525 7,776 3,749 7,197 Total tennis operations-bath and tennis 88,775 86,775 75,857 10,918 78,217 Total operations-bath and tennis 701,395 702,655 561,489 141,166 566,004 Food and beverage Clubhouse Personnel 390,810 390,810 385,763 5,047 384,370 Materials and supplies 233,605 255,605 255,201 404 248,362 Operation and contractual 173,325 173,325 170,597 2,728 183,136 Debt service principal 75,000 75,000 75,000 - 75,000 Total clubhouse 872,740 894,740 886,561 8,179 890,868 Poolside grill Personnel 33,650 27,340 27,286 54 35,626 Materials and supplies 29,675 27,665 26,887 778 22,770 Operation and contractual 2,350 1,670 1,452 218 2,521 Total poolside grill 65,675 56,675 55,625 1,050 60,917 Golf Clubhouse Personnel 94,800 111,200 111,133 67 94,786 Materials and supplies 129,275 142,075 141,707 368 121,546 Operation and contractual 7,140 6,490 6,477 13 5,832 Total golf clubhouse 231,215 259,765 259,317 448 222,164 Total food and beverage 1,169,630 1,211,180 1,201,503 9,677 1,173,949 Capital outlay 379,500 286,620 189,720 96,900 38,293 _ Total operating expenses-budgetary basis $ 4,087,980 $ 4,075,510 3,729,139 $ 346,371 3,540,493 (Continued) -87- Village of Oak Brook,Illinois — Sports Core Fund Schedule of Operating Expenses-Budget and Actual(Continued) Year Ended December 31,2007 2007 Variance with — Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual — Adjustments to GAAP basis Capital expenditures $ (189,720) $ (38,293) Depreciation expense 314,559 313,860 Principal payments on debt service (165,000) (160,000) Total adjustment to GAAP basis (40,161) 115,567 — Total operating expenses $ 3,688,978 $ 3,656,060 -88- 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, 2007 Self- Capital Insurance Garage Replacement Total - Assets Current Cash and investments $ 977,890 $ 115 $ 3,509,361 $ 4,487,366 Receivables Other 20,397 912 - 21,309 - Inventories - 64,518 - 64,518 Prepaid expense 18,531 - - 18,531 Total current assets 1,016,818 65,545 3,509,361 4,591,724 Capital assets Depreciable, net of accumulated depreciation - 21,012 1,977,502 1,998,514 Total assets $ 1,016,818 $ 86,557 $ 5,486,863 $ 6,590,238 Liabilities Current - Accounts payable $ 147,068 $ 33,865 $ 2,418 $ 183,351 Accrued payroll - 7,114 - 7,114 Compensated absences payable - 8,590 - 8,590 _ Deferred revenue 39,180 - - 39,180 Claims payable 150,000 - - 150,000 Total current liabilities 336,248 49,569 2,418 388,235 Net Assets - Invested in capital assets, net of related debt - 21,012 1,977,502 1,998,514 - Unrestricted 680,570 15,976 3,506,943 4,203,489 Total net assets $ 680,570 $ 36,988 $ 5,484,445 $ 6,202,003 - -89- Village of Oak Brook, Illinois _ Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Assets Year Ended December 31, 2007 Self- Capital Insurance Garage Replacement Total Operating revenues Charges for services $ 2,894,964 $ 562,727 $ 474,840 $ 3,932,531 Operating expenses Garage operations - 613,009 - 613,009 Claims and insurance 2,409,069 - - 2,409,069 Miscellaneous - - 20,517 20,517 Depreciation - 2,589 365,535 368,124 Total operating expenses 2,409,069 615,598 386,052 3,410,719 Operating income(loss) 485,895 (52,871) 88,788 521,812 Nonoperating revenues Investment income 37,160 1,504 176,358 215,022 Gain on sale of capital assets - - 19,335 19,335 Total nonoperating revenues 37,160 1,504 195,693 234,357 Change in net assets 523,055 (51,367) 284,481 756,169 Net assets- beginning 157,515 88,355 5,199,964 5,445,834 Net assets-ending $ 680,570 $ 36,988 $ 5,484,445 $ 6,202,003 -90- Village of Oak Brook,Illinois _ Internal Service Funds Combining Statement of Cash Flows Year Ended December 31,2007 Self- Capital Insurance Garage Replacement Total Cash flows from operating activities Receipts from internal services transactions $ 1,947,809 $ 563,080 $ 474,840 $ 2,985,729 _ Receipts from park district and retirees 942,692 - - 942,692 Payments to suppliers (2,426,620) (442,001) (104,128) (2,972,749) Payments to employees - (185,964) - (185,964) _ Net cash from operating activities 463,881 (64,885) 370,712 769,708 Cash flows from capital and related financing activities Capital assets purchased - (244,423) (244,423) Proceeds from sale of capital assets - 19,335 19,335 Net cash from capital and related ` financing activities - (225,088) (225,088) Cash flows from investing activities Sale of investments - - 443,414 443,414 Interest received 37,160 1,504 178,942 217,606 Net cash from investing activities 37,160 1,504 622,356 661,020 ` Net increase(decrease)in cash and cash equivalents 501,041 (63,381) 767,980 1,205,640 Cash and cash equivalents-beginning 476,849 63,496 2,079,082 2,619,427 Cash and cash equivalents-ending $ 977,890 $ 115 $ 2,847,062 $ 3,825,067 Cash and investments �— Cash and cash equivalents $ 977,890 $ 115 $ 2,847,062 $ 3,825,067 Investments - - 662,299 662,299 Total cash and investments $ 977,890 $ 115 $ 3,509,361 $ 4,487,366 (Continued) -91 - Village of Oak Brook,Illinois Internal Service Funds Combining Statement of Cash Flows(Continued) Year Ended December 31,2007 -- Self- Capital Insurance Garage Replacement Total Reconciliation of operating income(loss)to net cash provided by(used in)operating activities _ Operating income(loss) $ 485,895 $ (52,871) $ 88,788 $ 521,812 Depreciation - 2,589 365,535 368,124 Adjustments to reconcile operating income(loss)to _ net cash provided by(used in)operating activities: Changes in assets and liabilities: Accounts receivable 26,063 353 26,416 _ Inventories - (13,547) (13,547) Prepaid expenses (4,676) (4,676) Accounts payable (20,551) (4,546) (83,611) (108,708) _ Accrued payroll and compensated absences 3,137 3,137 Deferred revenue (25,850) - (25,850) Claims payable 3,000 - 3,000 Total adjustments (22,014) (14,603) (83,611) (120,228) Net cash provided by(used in)operating actiivities $ 463,881 $ (64,885) $ 370,712 $ 769,708 -92- Village of Oak Brook, Illinois Self-Insurance Fund Schedule of Revenues, Expenses and Changes in Net Assets-Budget and Actual Year Ended December 31, 2007 2007 Variance with — Original and Final Budget Final Positive 2006 Budget Actual (Negative) Actual Operating Revenues — Charges for services $ 2,969,200 $ 2,894,964 $ (74,236) $ 2,823,411 Operating expenses — Claims and insurance Insurance and administration 407,520 381,253 26,267 389,167 Health claims 2,373,160 1,853,306 519,854 2,213,292 — Dental claims 174,800 174,510 290 135,913 Total operating expenses 2,955,480 2,409,069 546,411 2,738,372 Operating income 13,720 485,895 (620,647) 85,039 Nonoperating revenues Investment income 10,000 37,160 27,160 18,648 Change in net assets $ 23,720 523,055 $ (593,487) 103,687 Net assets-beginning 157,515 53,828 — Net assets-ending $ 680,570 $ 157,515 -93- Village of Oak Brook,Illinois Garage Fund Schedule of Revenues,Expenses and Changes in Net Assets-Budget and Actual Year Ended December 31,2007 2007 Variance with Final Budget Original Final Positive 2006 Budget Budget Actual (Negative) Actual Operating revenues Charges for services $ 552,600 $ 552,600 $ 562,727 $ 10,127 $ 527,600 Operating expenses Garage operations Personnel 195,320 189,120 189,101 19 155,132 Materials and supplies 186,975 208,875 204,943 3,932 188,468 _ Operations and contractual 146,375 221,375 218,965 2,410 180,833 Capital outlay 50,000 - - - 9,158 Total operating expenses excluding depreciation 578,670 619,370 613,009 6,361 533,591 Operating income(loss) (26,070) (66,770) (50,282) 3,766 (5,991) Nonoperating revenues Investment income 2,500 2,500 1,504 (996) 2,541 Change in net assets-budgetary basis $ (23,570) $ (64,270) (48,778) $ 2,770 (3,450) Adjustments to GAAP basis Capital expenditures - 9,158 Depreciation expense (2,589) (3,384) Total adjustments to GAAP basis (2,589) 5,774 Change in net assets-GAAP basis (51,367) 2,324 Net assets-beginning 88,355 86,031 Net assets,-ending $ 36,988 $ 88,355 -94- Village of Oak Brook, Illinois Capital Replacement Fund Schedule of Revenues, Expenses and Changes in Net Assets-Budget and Actual Year Ended December 31, 2007 2007 Variance with Original and Final Budget - Final Positive 2006 Budget Actual (Negative) Actual Operating revenues Charges for services $ 474,840 $ 474,840 $ - $ 647,650 Operating expenses excluding depreciation Capital outlay 820,485 275,722 544,763 246,286 - Miscellaneous (10,000) 20,517 30,517 15,952 Total operating expenses excluding depreciation 810,485 296,239 575,280 262,238 Operating income (loss) (335,645) 178,601 (575,280) 385,412 Nonoperating revenues Investment income 125,000 176,358 51,358 137,249 Gain on sale of capital assets - 19,335 19,335 3,376 Total nonoperating revenues 125,000 195,693 70,693 140,625 Change in net assets-budgetary basis $ (210,645) 374,294 $ (504,587) 526,037 Adjustments to GAAP basis - Capital expenditures 275,722 246,286 Depreciation expense (365,535) (354,068) Total adjustments to GAAP basis (89,813) (107,782) Change in net assets-GAAP basis 284,481 418,255 Net assets-beginning 5,199,964 4,781,709 Net assets-ending $ 5,484,445 $ 5,199,964 -95- FIDUCIARY FUNDS 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 Changes in Plan Net Assets Year Ended December 31, 2007 Pension Trust Police Firefighters' Pension Pension Totals Additions Contributions Employer $ 564,284 $ 564,945 $ 1,129,229 Participants 301,565 244,953 546,518 865,849 809,898 1,675,747 Investment income Net appreciation in fair value of investments 1,238,040 927,994 2,166,034 Interest income 815,308 531,018 1,346,326 Less investment expense (47,092) (29,502) (76,594) 2,006,256 1,429,510 3,435,766 Total additions 2,872,105 2,239,408 5,111,513 Deductions Administration 52,587 34,240 86,827 Pension benefits and refunds 1,406,063 1,299,288 2,705,351 Total deductions 1,458,650 1,333,528 2,792,178 Change in net assets 1,413,455 905,880 2,319,335 Net assets- beginning 26,414,383 21,567,522 47,981,905 Net assets-ending $ 27,827,838 $ 22,473,402 $ 50,301,240 -97- Village of Oak Brook, Illinois Police Pension Fund Schedule of Changes in Plan Net Assets-Budget and Actual Year Ended December 31,2007 2007 Variance with Original and Final Budget _ Final Positive 2006 Budget Actual (Negative) Actual Additions Contributions Employer $ 598,425 $ 564,284 $ (34,141) $ 549,750 Participants 318,800 301,565 (17,235) 329,925 917,225 865,849 (51,376) 879,675 Investment income Net appreciation in fair value of investments - 1,238,040 1,238,040 1,574,821 _ Interest income 1,900,000 815,308 (1,084,692) 617,931 Less investment expense (46,000) (47,092) (1,092) (43,991) 1,854,000 2,006,256 152,256 2,148,761 Total additions 2,771,225 2,872,105 100,880 3,028,436 Deductions Administration 29,750 52,587 (22,837) 24,081 Pension benefits and refunds 1,507,800 1,406,063 101,737 1,305,742 Transfers to other pension funds - - - 36,791 Total deductions 1,537,550 1,458,650 78,900 1,366,614 Change in net assets $ 1,233,675 1,413,455 $ 179,780 1,661,822 Net assets-beginning 26,414,383 24,752,561 Net assets-ending $ 27,827,838 $ 26,414,383 -98- Village of Oak Brook, Illinois Firefighters' Pension Fund Schedule of Changes in Plan Net Assets- Budget and Actual Year Ended December 31, 2007 2007 Variance with Original and Final Budget _ Final Positive 2006 Budget Actual (Negative) Actual _ Additions Contributions Employer $ 615,595 $ 564,945 $ (50,650) $ 584,388 Participants 245,600 244,953 (647) 235,052 861,195 809,898 (51,297) 819,440 Investment income Net appreciation in fair value of investments - 927,994 927,994 1,433,858 — Interest income 1,575,000 531,018 (1,043,982) 454,902 Less investment expense (28,000) (29,502) (1,502) (26,916) 1,547,000 1,429,510 (117,490) 1,861,844 Total additions 2,408,195 2,239,408 (168,787) 2,681,284 Deductions Administration 28,900 34,240 (5,340) 29,072 Pension benefits and refunds 1,307,000 1,299,288 7,712 1,137,884 Total deductions 1,335,900 1,333,528 2,372 1,166,956 Change in net assets $ 1,072,295 905,880 $ (166,415) 1,514,328 Net assets-beginning 21,567,522 20,053,194 Net assets-ending $ 22,473,402 $ 21,567,522 -99- Statistical Section This part of the Village's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about the Village's overall financial health. Contents Paqe Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. 100- 104 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate it's property and sales taxes. 105- 108 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future. 109- 111 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place and to help make comparisons over time and with other governments. 112- 121 Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's financial information relates to the services the Village provides and the activities it performs. 122- 123 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. Village of Oak Brook, Illinois Net Assets by Component Last Three Fiscal Years Fiscal Year 2005 2006 2007 _ Governmental Activities Invested in Capital Assets Net of Related Debt $ 63.3 $ 63.0 $ 62.4 Restricted 0.6 - - Unrestricted 16.2 17.7 19.7 Total Governemntal Activities $ 80.1 $ 80.7 $ 82.1 Business-type Activities Invested in Capital Assets Net of Related Debt $ 23.8 $ 23.3 $ 22.7 Restricted - - - Unrestricted 4.0 5.0 7.0 Total Business-type Activities $ 27.8 $ 28.3 $ 29.7 Primary Government Invested in Capital Assets Net of Related Debt $ 87.1 $ 86.3 $ 85.1 Restricted 0.6 - - Unrestricted 20.2 22.7 26.7 Total Primary Government $ 107.9 $ 109.0 $ 111.8 Data Source Audited Financial Statements Data in millions - 100- Village of Oak Brook, Illinois Change in Net Assets Last Three Fiscal Years Fiscal Year 2005 2006 2007 Expenses Governmental Activities General Government $ 4.3 $ 4.7 $ 5.3 Public Safety 11.3 12.0 12.3 Public Works 4.6 4.1 4.3 Culture and Recreation 1.7 1.9 1.8 Interest on Long-Term Debt 0.1 0.1 0.1 Total Governemntal Activities Expenses 22.0 22.8 23.8 Business-type Activities Water 4.5 3.9 4.4 Sports Core 3.4 3.7 3.7 Total Business-type Activities Expenses 7.9 7.6 8.1 Total Primary Government Expenses $ 29.9 $ 30.4 $ 31.9 Program Revenues Governmental Activities Charges for Services General Government $ 1.1 $ 1.2 $ 1.7 Public Safety 0.8 0.8 0.9 Other Activities 0.0 0.0 0.0 Operating Grants and Contributions 2.8 0.3 0.5 Total Governmental Activities Program Revenues 4.7 2.3 3.1 Business-type Activities _ Charges for Services Water 4.5 4.4 4.6 Sewer 3.4 3.6 3.8 Total Business-type Activities Program Revenues 7.9 8.0 8.4 Total Primary Government Program Revenues $ 12.6 $ 10.3 $ 11.5 Net(Expense) Revenue Governmental Activities $ (17.3) $ (20.5) $ (20.7) Business-type Activities - 0.4 0.3 Total Primary Government Net(Expense) Revenue $ (17.3) $ (20.1) $ (20.4) - 101 - Village of Oak Brook, Illinois - Change in Net Assets Last Three Fiscal Years Fiscal Year - 2005 2006 2007 General Revenues and Other Changes in Net Assets - Governmental Activities Taxes Sales and Local Use Taxes $ 13.0 $ 14.2 $ 14.4 - Utility 4.3 3.8 4.2 Other 1.6 1.5 2.5 - Investment Earnings - 0.7 0.8 Miscellaneous - 0.2 0.2 Total Governmental Activities 18.9 20.4 22.1 Business-type Activities - Investment Earnings 0.1 0.2 0.3 Miscellaneous 1.1 - 0.8 Total Business-type Activities 1.2 0.2 1.1 Total Primary Government $ 20.1 $ 20.6 $ 23.2 Change in Net Assets - Governmental Activites $ 1.6 $ (0.1) $ 1.4 Business-type Activities 1.2 0.6 1.4 Total Primary Government Change in Net Assets $ 2.8 $ 0.5 $ 2.8 Data Source Audited Financial Statements Data in millions - 102- - Village of Oak Brook,Illinois Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General Fund Reserved $ 654,729 $ 755,284 $ 794,572 $ 2,915,147 $ 1,142,795 $ 1,290,284 $ 1,292,859 $ 1,291,561 $ 1,292,073 $ 1,291,112 Unreserved 17,984,298 18,743,688 19,577,513 14,367,995 10,479,787 9,802,818 9,949,121 11,651,504 11,731,876 12,152,083 Total General Fund $ 18,639,027 $ 19,498,972 $ 20,372,085 $ 17,283,142 $ 11,622,582 $ 11,093,102 $ 11,241,980 $ 12,943,065 $ 13,023,949 $ 13,443,195 Infrastructure Fund Unreserved $ 2,436,618 $ 2,172,454 $ 2,725,747 $ 1,936,562 $ 2,027,275 $ 2,316,583 $ 2,996,267 $ 1,696,960 $ 1,919,422 $ 2,110,918 Total Infrastructure Fund $ 2,436,618 $ 2,172,454 $ 2,725,747 $ 1,936,562 $ 2,027,275 $ 2,316,583 $ 2,996,267 $ 1,696,960 $ 1,919,422 $ 2,110,918 All Other Governmental Funds Unreserved,reported in Special Revenue Funds $ 855,979 $ 1,161,857 $ 952,428 $ 1,138,212 $ 1,163,310 $ 1,065,232 $ 850,871 $ 609,248 $ 780,902 $ 1,365,470 Capital Project Fund - - - - - - - - 15,156 17,407 Total All Other Governemntal Funds $ 855,979 $ 1,161,857 $ 952,428 $ 1,138,212 $ 1,163,310 $ 1,065,232 $ 850,871 $ 609,248 $ 796,058 $ 1,382,877 Data Source Audited Financial Statements -103- Village of Oak Brook,Illinois Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenues Sales Tax Revenue $ 10,947,063 $ 11,204,642 $ 10,455,044 $ 9,307,134 $ 9,982,742 $ 9,749,858 $ 10,529,690 $ 10,497,102 $ 11,461,184 $ 11,396,397 Non-home Rule Sales Tax - - - - - - 1,304,467 2,422,549 2,641,030 2,618,565 Other Intergovernmental 1,303,995 1,394,306 1,528,125 1,357,908 2,032,368 1,193,908 1,321,112 1,513,492 1,535,507 1,711,638 Utility Taxes 1,692,113 1,715,573 2,326,035 3,351,774 4,422,058 4,500,108 4,298,744 4,268,283 3,822,020 4,247,675 Hotel/Motel Taxes 330,953 338,951 353,692 308,101 297,911 306,365 323,325 349,615 416,507 1,262,808 Licenses and Permits 391,789 432,724 623,858 324,131 468,403 570,261 741,528 669,726 858,401 850,965 Charges for Services 364,650 425,752 389,557 374,409 560,204 703,634 745,027 791,638 835,390 832,008 Fines and Penalties 222,239 198,769 223,462 300,311 311,750 353,513 401,616 334,869 292,331 375,717 Investment Income 1,043,142 849,568 1,347,175 1,135,564 486,149 158,482 104,869 286,859 562,590 682,728 Donations - - - 400,000 25,000 410,000 - 15,000 25,311 45,150 Miscellaneous 603,548 665,606 1,679,561 97,185 100,766 228,477 176,630 166,340 190,225 281,864 Total Revenues 16,899,492 17,225,891 18,926,509 16,956,517 18,687,351 18,174,606 19,947,008 21,315,473 22,640,496 24,305,515 Expenditures General Government 3,307,267 3,686,573 4,042,910 4,054,334 4,391,793 4,811,984 4,769,485 4,070,435 5,052,804 5,529,429 Public Safety 7,017,793 7,443,818 8,228,147 8,976,293 9,269,396 9,537,454 9,590,916 11,158,837 12,047,821 12,156,303 Public Works 1,458,185 1,678,499 1,636,909 1,558,922 1,772,431 1,906,948 2,023,984 2,954,815 2,338,619 2,460,937 Culture and Recreation 1,056,802 1,144,361 1,104,942 1,245,024 1,603,019 1,554,606 1,563,457 1,594,661 1,855,514 1,746,352 Capital Outlay 2,592,487 2,479,181 2,802,209 9,378,189 6,999,580 1,139,208 1,009,984 1,001,532 855,582 1,214,933 Total Expenditures 15,432,534 16,432,432 17,815,117 25,212,762 24,036,219 18,950,200 18,957,826 20,780,280 22,150,340 23,107,954 Excess of Revenues over(under) Expenditures 1,466,958 793,459 1,111,392 (8,256,245) (5,348,868) (775,594) 989,182 535,193 490,156 1,197,561 Other Financing Sources(Uses) Transfers In 900,398 247,500 878,634 843,420 535,307 200,000 - - - - Transfers Out (807,198) (139,300) (772,034) (252,990) (396,707) - Installment Contract Proceeds 3,968,310 - Sale of Capital Assets - - - 398,937 39,000 - Total Other Financing Sources(Uses) 93,200 108,200 106,600 4,957,677 177,600 200,000 - - - Net Change in Fund Balances $ 1,560,158 $ 901,659 $ 1,217,992 $ (3,298,568) $ (5,171,268) $ (575,594) $ 989,182 $ 535,193 $ 490,156 $ 1,197,561 Data Source Audited Financial Statements -104- I I I I I I I I I I I I I I ( I I I Village of Oak Brook, Illinois Assessed Value and Actual Value of Taxable Property Last Ten Levy Years (data in thousands) Total Estimated Estimated Less: Total Taxable Direct Actual Actual Levy Residential Commercial Industrial Tax-Exempt Assessed Tax Taxable Taxable Year Property Property Property Property Value Rate Value Value 1997 $ 559,698 $ 412,749 $ - $ - $ 972,447 $ - $ 2,917,341 33.333% 1998 580,753 424,344 - - 1,005,097 - 3,015,291 33.333% 1999 605,204 440,781 - - 1,045,985 - 3,137,955 33.333% 2000 636,436 464,032 - - 1,100,468 - 3,301,404 33.333% 2001 681,876 499,605 - - 1,181,481 - 3,544,443 33.333% 2002 752,206 541,598 - - 1,293,804 - 3,881,412 33.333% 2003 793,873 533,227 - - 1,327,100 - 3,981,300 33.333% 2004 869,932 555,935 - - 1,425,867 - 4,277,601 33.333% 2005 934,030 547,901 - - 1,481,931 - 4,445,793 33.333% 2006 1,011,883 566,390 - - 1,578,273 - 4,734,819 33.333% Data Source Office of the County Clerk Note: Property in the Village is reassessed each year. Property is assessed at 33%of actual value. Other Information from Statement: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of property tax levies and collections. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. - 105- Village of Oak Brook, Illinois Property Tax Rates-Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Tax Rates Village of Oak Brook - - - - - - - - - - Basic Town 0.6072 0.5834 0.5601 0.5379 0.5072 0.4685 0.4375 0.4120 0.3961 0.3878 Junior College#502 0.2042 0.2027 0.2006 0.1966 0.1930 0.2179 0.2097 0.1972 0.1874 0.1929 Grade School#53 1.0362 1.0237 0.9862 0.9689 0.9476 0.8877 0.8984 0.8527 0.8530 0.8319 High School#86 1.4885 1.5258 1.4881 1.4367 1.4250 1.3858 1.3094 1.2310 1.1910 1.1418 Oak Brook Park District 0.1932 0.1911 0.1877 0,1674 0.1538 0.1667 0.1666 0.1589 0.1621 0.1583 Total Tax Rates 3.5293 3.5267 3.4227 3.3075 3.2266 3.1266 3.0216 2.8518 2.7896 2.7127 NOTE: Basic town includes all county,forest preserve and township rates. Property tax rates are per$100 of assessed valuation. Data Source Office of the County Clerk - 106- 1 Village of Oak Brook, Illinois Principal Revenue Taxpayers Current Year and Nine Years Ago 2007 1998* Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Crate& Barrel Costco Wholesale Entex Information Services, Inc. Macy's International Business Machines Macy's Home Store Lord &Taylor Neiman Marcus Marshall Fields Nordstrom Rack Marshall Fields Home Store Nordstrom, Inc. Neiman Marcus Sears Roebuck&Co. Nordstrom, Inc. Tiffany&Co. Saks&Company Walter E. Smithe Furniture Sears Roebuck&Co. Top 10 total $ 5,325,659 Top 10 total $ 5,805,099 Total Sales Tax Revenue $ 11,299,084 Total Sales Tax Revenue $ 11,127,796 Top 10 as a Percent of Sales Top 10 as a Percent of Sales Tax Revenue 47.13% Tax Revenue 52.17% Data Source Illinois Department of Revenue Note: Confidentiality rules of the Illinois Department of Revenue prohibit disclosure of individual _ taxpayer payment information. The data presented above is organized alphabetically with revenue for the top ten taxpayers reported in aggregate for the years presented. * 1998 is the most recent information available - 107- Village of Oak Brook, Illinois Direct and Overlapping Sales Tax Rates Last Ten Levy Years Village DuPage County Regional Village Fiscal Direct State DuPage County Water Transportation Non-Home Rule Total Year Rate Rate Rate Commission Authority Rate Rate 1998 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 1999 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2000 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2001 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2002 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2003 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2004 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% 2005 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% 2006 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% 2007 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% Data Source Village and County Records - 108- 1 I I I 1 I I I I I I 1 I I I I I I I Village of Oak Brook, Illinois Ratios of Outstanding Debt By Type Last Ten Fiscal Years Govermental Business-Type Activities Activities Ratio of Total Total Fiscal Installment Installment Total Outstanding Debt Outstanding Year Notes Notes Capital Primary To Equalized Debt Per Ended Payable Payable Leases Government Assessed Valuation* Capita* 1998 $ - $ - $ - $ - 0.08% $ - 1999 - 820,000 - 820,000 0.08% 90.24 2000 - 2,555,000 107,381 2,662,381 0.25% 305.95 2001 3,810,000 1,710,000 73,880 5,593,880 0.51% 642.83 2002 3,615,000 1,485,000 38,136 5,138,136 0.43% 590.45 2003 3,410,000 1,360,000 - 4,770,000 0.37% 548.15 2004 3,195,000 1,205,000 - 4,400,000 0.33% 505.63 2005 2,970,000 1,045,000 120,643 4,135,643 0.29% 475.25 2006 2,735,000 885,000 82,378 3,702,378 0.25% 425.46 2007 2,485,000 720,000 42,195 3,247,195 0.22% 373.16 Note: Details of the Village's outstanding debt can be found in the notes to the financial statements. * See the Schedule of Demographic and Economic Information on page 112 for equalized assessed valuation of property and population data. Personal income information is not available. _ 109- Village of Oak Brook, Illinois Schedule of Direct and Overlapping Bonded Debt _ December 31,2007 (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 188,250,000 4.14 7,801,661 DuPage Forest Preserve 223,723,678 4.14 9,271,800 DuPage Water Commission 56,480,000 4.31 2,434,001 — Park Districts 1,275,000 98.24 1,252,622 Elementary School Districts 91,618,710 3.30 3,025,516 High School Districts 159,296,912 8.09 12,892,520 Junior College 502 91,135,000 3.75 3,416,822 Unit District 205 75,912,431 6.17 4,681,865 TOTAL $ 887,691,731 $ 44,776,807 y * 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 - 110- Village of Oak Brook,Illinois Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Legal debt limit $ 83,873,588 $ 86,689,641 $ 90,216,217 $ 94,915,374 $ 101,902,766 $ 111,590,582 $ 114,462,334 $ 122,938,821 $ 127,816,578 $ 136,126,063 Total net debt - 820,000 2,555,000 5,520,000 5,100,000 4,770,000 4,400,000 4,015,000 3,620,000 3,205,000 applicable to limit Legal debt margin 83,873,588 85,869,641 87,661,217 89,395,374 96,802,766 106,820,582 110,062,334 118,923,821 124,196,578 132,921,063 Total net debt applicable 0.00% 0.95% 2.83% 5.82% 5.00% 4.27% 3.84% 3.27% 2.83% 2.35% to the limit as a percentage of debt limit Legal Debt Margin Calculation for Fiscal 2007 Assessed Value $ 1,578,273,191 Legal debt margin 8.625% Debt limit 136,126,063 Debt applicable to limit General obligation bonds 3,205,000 Legal debt margin $ 132,921,063 -111 - Village of Oak Brook, Illinois — Demographic and Economic Information _ Last Ten Fiscal Years Equalized Assessed Per DuPage Co. Fiscal Value Capita Unemployment _ Year Population (EAV) EAV Rate 1998 9,087 (E) $ 972,447,396 $ 107,015 2.7% 1999 9,087 (E) 1,005,097,284 110,608 2.5% 2000 8,702 (A) 1,045,985,125 120,201 2.6% _ 2001 8,702 (E) 1,100,468,108 126,462 3.8% 2002 8,702 (E) 1,181,481,341 135,771 5.4% 2003 8,702 (E) 1,293,803,854 148,679 5.8% 2004 8,702 (E) 1,327,099,526 152,505 4.7% 2005 8,702 (E) 1,425,867,144 163,855 4.7% _ 2006 8,702 (E) 1,481,931,334 170,298 3.6% 2007 8,702 (E) 1,578,273,191 181,369 3.8% (A)Actual (E) Estimate _ Note: Personal Income data not available - 112- Village of Oak Brook, Illinois Top Five Principal Employers December 31, 2007 Percentage Employer Rank Employees of Total Employment Oak Brook Center Mall 1 3,500 11.0% McDonald's Corporation 2 2,800 8.8% _ Ace Hardware 3 1,000 3.1% Advocate Health Care 4 580 1.8% Safeway, Inc. 5 400 1.3% Data Source Reference USA website; Oak Brook Chamber of Commerce Information prior to 2006 was unavailable. - 113- Village of Oak Brook, Illinois - Retail Sales Volume-Top 25 Illinois Communities - State Collection Period January 1, 2007 Through December 31,2007 (1) Estimated Sales 2000 Municipality Rank Sales Per Capita Population Chicago 1 $ 22,954,101,315 $ 7,926 2,896,016 - Schaumburg 2 3,039,835,343 40,324 75,386 Naperville 3 2,729,371,010 21,264 128,358 _ Rockford 4 2,469,252,221 16,449 150,115 Kankakee 5 2,459,583,068 89,469 27,491 Springfield 6 2,432,136,649 21,822 111,454 - Peoria 7 2,170,256,333 19,217 112,936 Aurora 8 1,982,339,754 13,863 142,990 _ Joliet 9 1,952,761,842 18,384 106,221 Orland Park 10 1,902,208,784 37,242 51,077 Champaign 11 1,491,167,039 22,085 67,518 -- Niles 12 1,368,885,380 45,526 30,068 Glenview 13 1,360,073,032 32,501 41,847 Bloomington 14 1,322,228,833 20,402 64,808 Sycamore 15 1,318,471,832 109,690 12,020 Downers Grove 16 1,310,701,492 26,901 48,724 Skokie 17 1,287,566,312 20,325 63,348 Gurnee 18 1,237,600,186 42,922 28,834 Vernon Hills 19 1,169,758,843 58,139 20,120 Oak Brook 20 1,129,908,539 129,845 8,702 Decatur 21 1,118,098,135 13,659 81,860 - Arlington Heights 22 1,114,184,660 14,654 76,031 Lombard 23 1,101,696,947 26,031 42,322 Crystal Lake 24 1,095,162,701 28,820 38,000 - Tinley Park 25 1,067,318,630 22,052 48,401 Source: Illinois Department of Revenue- Local Tax Allocation Division and the U.S. Census Bureau. - Note(1): Distributions to municipalities of the 1%municipal tax were used to calculate the - estimated retail sales. Actual sales tax amounts were received by the municipalities April 1, 2007 through March 31, 2008. - 114- Village of Oak Brook,Illinois Sales Tax Receipts Cash Basis Last Ten Fiscal Years Fiscal Year Village Share/ %Change from Non-Home rule %Change from Total %Change from Ended State Sales Preceding Sales Tax Preceding Sales Tax Preceding December 31 Tax Receipts Year Receipts Year Receipts Year 1998 $ 11,057,573 0.1% $ $ 11,057,573 0.1% 1999 11,049,834 -0.1% 11,049,834 -0.1% 2000 10,591,635 -4.1% 10,591,635 -4.1% 2001 9,605,724 -9.3% 9,605,724 -9.3% 2002 9,570,001 -0.4% 9,570,001 -0.4% 2003 10,017,499 4.7% 10,017,499 4.7% 2004 10,368,148 3.5% 568,008 N/A 10,936,156 9.2% 2005 10,572,493 2.0% 2,422,386 326.5% 12,994,879 18.8% 2006 11,138,321 5.4% 2,559,593 5.7% 13,697,914 5.4% 2007 11,340,036 1.8% 2,608,471 1.9% 13,948,507 1.8% Source: Village Records Note: The Village's Non-Home rule sales tax was effective beginning July 1,2004. -115- Village of Oak Brook,Illinois State Sales Tax Receipts By Month Cash Basis Last Three Fiscal Years _ Percentage Change Fiscal Year Fiscal Year Fiscal Year From Preceding Year Month Ended 12/31/05 Ended 12/31/06 Ended 12/31/07 FY 2005 FY 2006 FY 2007 January $ 862,489 $ 735,280 $ 839,525 24.9% -14.7% 14.2% February 928,682 914,236 976,534 -4.9% -1.6% 6.8% _ March 1,506,453 1,318,065 1,662,771 4.6% -12.5% 26.2% April 666,139 1,144,121 761,206 1.0% 71.8% -33.5% May 720,294 741,173 646,862 0.4% 2.9% -12.7% June 832,803 570,903 920,112 3.3% -31.4% 61.2% July 782,475 1,104,467 881,446 -6.3% 41.2% -20.2% August 835,369 876,142 880,885 -0.7% 4.9% 0.5% September 954,669 977,050 957,796 8.1% 2.3% -2.0% October 782,822 882,382 907,521 -7.3% 12.7% 2.8% November 870,260 940,842 965,575 4.5% 8.1% 2.6% December 830,038 933,660 939,802 -1.4% 12.5% 0.7% Total $ 10,572,493 $ 11,138,321 $ 11,340,036 2.0% 5.4% 1.8% Source: Village Records - 116- Village of Oak Brook,Illinois Non-Home Rule Sales Tax Receipts By Month Cash Basis Last Three Fiscal Years Percentage Change Fiscal Year Fiscal Year Fiscal Year From Preceding Year Month Ended 12/31/05 Ended 12/31/06 Ended 12/31/07 FY 2005 FY 2006 FY 2007 January $ 192,938 $ 167,858 $ 198,638 N/A -13.0% 18.3% February 216,783 212,699 226,664 N/A -1.9% 6.6% March 356,047 311,297 392,740 N/A -12.6% 26.2% '- April 149,451 265,745 173,474 N/A 77.8% -34.7% May 168,250 168,411 145,910 N/A 0.1% -13.4% June 193,372 137,962 209,843 N/A -28.7% 52.1% July 180,858 250,291 199,449 N/A 38.4% -20.3% August 192,941 199,279 201,527 N/A 3.3% 1.1% September 218,815 225,858 222,169 N/A 3.2% -1.6% October 179,313 201,426 208,270 -6.1% 12.3% 3.4% November 186,759 203,238 211,214 2.8% 8.8% 3.9% December 186,859 215,529 218,573 -4.3% 15.3% 1.4% Total $ 2,422,386 $ 2,559,593 $ 2,608,471 326.5% 5.7% 1.9% Source: Village Records Note: The Village's Non-Home rule sales tax was effective July 1,2004 with collections beginning in October 2004. -117- Village of Oak Brook,Illinois Sales Tax By Category Last Ten Fiscal Years Fiscal Years 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General Merchandise $ 2,687,252 $ 2,858,100 $ 2,881,090 $ 2,863,474 $ 2,727,372 $ 2,752,128 $ 2,979,121 $ 2,243,966 $ 3,031,452 $ 2,384,953 Food 41,468 47,704 54,930 55,395 50,868 51,362 40,239 41,125 46,714 56,332 Drinking and eating places 860,026 841,856 901,251 938,849 956,286 968,701 1,075,685 1,105,997 1,181,813 1,266,893 Apparel 2,738,660 2,742,262 2,667,952 2,524,261 2,551,474 2,619,437 2,683,775 2,813,176 3,051,925 3,075,294 Furniture,H.H.and radio 2,396,908 1,985,631 939,859 632,564 577,992 824,925 917,782 945,017 961,241 1,080,877 Lumber,building and hardware 55,602 67,238 79,920 82,726 91,162 120,341 113,660 105,873 104,720 85,382 Automotive and filling stations 48,750 38,754 166,039 538,037 947,990 1,013,497 1,211,391 1,333,253 1,465,864 1,544,153 Drugs and other retail 856,428 916,004 1,208,582 1,150,466 1,445,340 1,107,775 1,156,873 1,179,604 1,285,354 1,240,805 Agriculture and all others 1,276,603 1,516,202 1,282,233 671,440 423,268 300,850 304,287 397,129 451,957 491,738 Manufacturers 166,099 91,391 91,552 53,079 96,147 50,297 75,179 77,311 68,531 72,399 Total $ 11,127,796 $ 11,105,142 $ 10,273,408 $ 9,510,291 $ 9,867,898 $ 9,809,313 $ 10,557,992 $ 10,242,451 $ 11,649,570 $ 11,298,826 Village direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Source: Illinois Department of Revenue-Local Tax Allocation Division Note: Gross receipts include both Cook and DuPage County 1%municipal sales tax. Amounts reflect sales tax collected by the Village between April 1 and March 31 as reported by the State. -118- Village of Oak Brook,Illinois Non-Home Rule Sales Tax By Category Last Ten Fiscal Years Fiscal Years 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General Merchandise $ $ $ $ $ $ $ 382,923 $ 556,016 $ 743,530 $ 590,403 Food 2,007 4,444 5,150 8,577 Drinking and eating places 142,641 275,357 294,331 315,085 Apparel 373,434 702,672 762,294 768,375 Furniture,H.H.and radio 126,581 231,825 240,036 269,738 Lumber,building and hardware 14,797 26,448 26,171 21,290 Automotive and filling stations 96,769 183,613 204,893 207,328 Drugs and other retail 147,168 260,634 278,768 275,639 Agriculture and all others 36,238 83,805 108,407 108,766 Manufacturers 10,196 19,327 17,079 18,064 Total $ - $ $ $ $ - $ $ 1,332,753 $ 2,344,139 $ 2,680,660 $ 2,583,266 Village non-home rule sales tax rate - 0.25% 0.25% 0.25% 0.25% Source: Illinois Department of Revenue-Local Tax Allocation Division Note: Gross receipts include both Cook and DuPage County 1%municipal sales tax. Amounts reflect sales tax collected between April 1 and March 31 as reported by the State. Note: The Village's Non-Home rule sales tax was effective July 1,2004. -119- Village of Oak Brook,Illinois Budgeted Full-Time Equivalent Employees Last Ten Fiscal Years Function/Program 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 111 Board of Trustees 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00 1.00 112 Village Clerk 1.50 2.50 2.00 2.50 2.50 2.50 2.50 2.75 2.75 3.25 121 Legal 1.00 1.00 1.00 1.00 1.00 1.00 0.25 0.25 0.25 0.25 131 General Management 3.25 3.25 3.25 3.25 3.25 3.25 3.50 3.50 3.25 3.25 132 Human Resources 0.75 0.75 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 134 Risk Management 0.25 0.25 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 136 General Services 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 137 Business Licenses - - - - 0.25 0.25 141 Purchasing 1.25 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 151 Information Services 1.75 2.50 3.50 3.50 3.50 3.50 3.50 3.50 3.501 3.50 Legislative and General Management Total 11.50 13.50 14.50 15.001 15.00 15.00 14.50 14.75 15.25 15.75 211 Financial Services Management 1.25 1.25 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 221 Accounting and Reporting 4.25 4.25 4.50 5.00 5.00 4.50 4.50 4.50 4.50 4.50 Financial Services Total 5.50 5.50 5.50 6.00 6.00 5.50 5.50 5.501 5.50 5.50 321 Buildings and Grounds 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 341 Garage Operations 1.50 1.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 351 Water Operations 6.00 6.00 6.00 6.00 6.00 7.00 7.00 7.50 7.50 7.50 360 Public Works Management 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 361 Streets-General Salaries 9.00 9.00 8.00 8.00 1 8.00 8.00 8.00 8.00 8.00 8.00 Public Works Total 20.50 20.50 20.00 21.00 21.00 21.00 21.001 21.50 21.50 21.50 460 Engineering 4.00 4.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 Engineering and Capital Projects Total 4.00 4.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 511 Library General Operations 4.75 5.25 5.25 5.75 7.00 7.00 7.00 7.00 7.00 7.00 521 Technical Services 2.00 2.00 2.25 2.25 2.50 2.50 2.50 2.50 2.50 2.50 531 Reference and User Services 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 541 Youth Services 1.75 1.75 1.75 1.75 2.75 2.75 2.75 2.75 2.75 2.75 Library Total 1 11.001 11.501 11.751 12.25 14.75 14.751 14.75 14.75 14.75 14.75 (Continued) - 120- 1 1 I 1 I 1 I I I 1 I I I I I 1 I 1 I I I I I I I I I I I ! I I I I I I I I Village of Oak Brook,Illinois Budgeted Full-Time Equivalent Employees(Continued) Last Ten Fiscal Years Function/Program 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 611 Police Services Management 3.00 3.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 3.00 621 Police Field Services 32.00 32.00 33.00 36.00 36.00 33.00 35.00 37.00 35.00 35.00 631 Police General Support 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.50 3.00 632 Police Investigations 8.00 8.00 8.00 8.00 8.00 8.00 6.00 6.00 6.00 7.00 633 Village Communications Center 9.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 11.00 12.00 634 Police Records 4.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 635 Police Public Relations/Crime Prevention 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 2.00 0.00 Police Total 59.00 60.00 62.00 65.00 65.00 62.00 62.00 62.00 62.50 63.00 700 Fire and EMS-General Salaries** 31.00 31.00 33.00 36.00 33.00 33.00 33.00 33.00 33.00 33.00 711 Rescue and Fire Service Management 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 741 Fire Prevention and Public Safety Education 2.75 2.75 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 742 Planning and Zoning 1.75 1.75 Fire Total*** 35.75 35.75 38.00 41.001 38.00 38.00 38.00 38.00 38.00 38.00 811 Sports Core General Operations 3.25 3.25 3.25 3.25 3.25 3.25 3.25 2.75 2.75 2.75 821 Sports Core Food&Beverage Operations 1.00 1.00 2.00 2.00 2.00 2.00 2.00 1.50 2.00 2.50 831 Golf Club General Operations 2.25 2.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 834 Golf Course Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.001 3.00 3.00 Sports Core Total 9.50 9.50 11.50 11.50 11.50 11.50 11.50 10.50 11.00 11.50 911 Community Development Management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 921 Code Enforcement 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.00 Community Development Total 0.00 0.00 5.00 5.00 5.001 5.001 5.001 5.00 5.00 6.00 GRAND TOTAL ALL DEPARTMENTS 1 156.751 160.251 173.25 181.75 180.251 176.751 176.25 176.00 177.50 180.00 *Summary represents full-time equivalent positions not including seasonal,temporary or situational employees. Regular part-time employee hours have been rounded to the nearest quarter full-time equivalent. **Six contract firefighter/paramedics are used to supplement the full-time complement of firefighter/paramedics. ***Part-time positions that are filled by off-duty full-time Fire Department personnel are not included. These positions include Fire Prevention Inspectors, Building Inspectors,Administrative Aide,EMS Director, Public Safety Information Coordinator,and CPR Coordinator. - 121 - Village of Oak Brook,Illinois Operating Indicators Last Ten Fiscal Years Function/Program 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Public Safety Police Physical arrests 380 290 344 341 356 313 364 357 330 319 Parking violations 2,497 2,180 2,714 2,496 1,908 2,376 1,345 1,112 579 1,472 Traffic violations 4,308 4,211 4,295 5,982 5,228 5,247 4,813 4,328 4,164 4,551 Fire EMS Incidents 1,115 1,076 1,041 1,073 1,022 1,049 1,016 1,059 1,138 1,093 Fire Incidents 1,188 1,206 1,460 1,675 743 747 1,075 949 716 823 Communications Center Police calls dispatched 10,574 9,624 10,120 9,823 9,507 9,597 10,142 11,766 10,864 10,880 Fire/EMS calls dispatched 1,867 1,852 1,882 1,944 1,765 2,224 2,091 2,148 2,013 2,250 Water New water meters installed 21 25 35 41 46 39 38 47 31 31 Water main breaks repaired 45 88 62 50 70 78 71 110 63 109 Water pumped(Mil.Gals.) 1,419 1,476 1,488 1,417 1,608 1,513 1,375 1,530 1,261 1,336 Library Total Circulation 48,857 52,961 54,317 63,000 73,725 92,066 96,024 98,754 96,414 99,009 Avg.Daily Circulation 145 157.6 160.2 185.8 236.3 270.8 280.8 289.6 286.1 292.1 Total Holdings 48,080 52,354 54,918 56,189 61,108 83,115 89,292 96,721 103,951 106,181 Community Development Building permits issues 847 803 825 742 819 757 891 903 947 856 Inspections n/a n/a n/a n/a n/a n/a n/a 1,129 2,268 1,754 Estimated construction value $ 74,003,014 $ 86,413,716 $ 96,296,075 $ 66,309,097 $ 40,587,413 $ 57,455,832 $ 78,447,306 $ 73,549,628 $ 76,294,249 $ 81,953,372 Sports Core B&T Recreation Membership 322 293 320 262 245 344 343 311 302 291 Social Memberships 89 89 104 98 148 88 189 122 106 120 Total Events 320 327 385 316 313 306 252 215 224 226 Golf Memberships 284 290 315 296 283 267 263 260 262 235 Total Golf Rounds 50,727 47,844 47,458 48,231 44,134 45,637 44,422 44,005 42,324 43,561 Data Source Various village departments n/a•Information was unavailable for this given period. 122- I 1 I I I I ( I ( I I 1 I I ( I I 1 Village of Oak Brook,Illinois Capital Asset Statistics Last Ten Fiscal Years Function/Program 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Area patrols 5 5 5 5 5 5 5 5 5 5 Patrol units 15 15 15 15 15 15 15 15 15 15 Fire Fire stations 2 2 2 2 2 2 2 2 2 2 Fire trucks 7 7 7 7 7 7 7 7 7 7 Public Works Arterial streets(miles) 8.5 8.5 8.5 8.5 8.5 8.5 8.5 9 9 8.5 Residential streets(miles) 55 55 55 55 55 48 48 49 49 49 Streetlights 453 573 573 565 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 11 11 11 11 Water Water mains(miles) 115 115 115 115 115 115 115 115 115 115 Fire hydrants 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Storage capacity(gallons) 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. Data Source Various village departments -123-