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CAFR (Year Ended December 31, 2010) I$ L F OAt `�!► t r LF All 000 0 U WTI � VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31 , 2010 L. L l VILLAGE OF OAK BROOK, ILLINOIS L COMPREHENSIVE ANNUAL FINANCIAL REPORT �. For the Year Ended December 31, 2010 r L L L Prepared by the Finance Department Sharon Dangles Finance Director L VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS L Page(s) INTRODUCTORY SECTION PrincipalOfficials.......................................................................................................... i OrganizationChart........................................................................................................ ii 60 Certificate of Achievement for Excellence in Financial Reporting................................................................................ iii L Letterof Transmittal..................................................................................................... iv-ix FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT..................................................................... 1-2 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS �- Management's Discussion and Analysis ..MD&A 1 - 15 .................................................................. i Basic Financial Statements 4 Government-Wide Financial Statements ` Statement of Net Assets.................................................................................. 3 Statementof Activities.................................................................................... 4-5 Fund Financial Statements Governmental Funds .. Balance Sheet ............................................................................................ 6 Reconciliation of Fund Balances of Governmental Funds to the �.. Governmental Activities in the Statement of Net Assets ........................... 7 Statement of Revenues, Expenditures and Changes in Fund Balances......... 8 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Assets............................................................................. 10 Statement of Revenues, Expenses and Changes in Net Assets..................... 11 Statement of Cash Flows............................................................................ 12-13 Fiduciary Funds Statement of Fiduciary Net Assets.............................................................. 14 Statement of Changes in Fiduciary Net Assets............................................ 15 Notes to Financial Statements.............................................................................. 16-50 Required Supplementary Information — Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund..................................................................... 51 — Notes to Required Supplementary Information..................................................... 52 Schedule of Funding Progress Illinois Municipal Retirement Fund.................................................................. 53 _ Sheriffs Law Enforcement Personnel.............................................................. 54 PolicePension Fund........................................................................................ 55 Firefighters' Pension Fund............................................................................... 56 Other Postemployment Benefit Plan................................................................ 57 Schedule of Employer Contributions Illinois Municipal Retirement Fund.................................................................. 58 Sheriffs Law Enforcement Personnel.............................................................. 59 Police Pension Fund........................................................................................ 60 Firefighters' Pension Fund............................................................................... 61 Other Postemployment Benefit Plan................................................................ 62 _ VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Pae s _ FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund.................................. 63 Schedule of Expenditures - Budget and Actual - General Fund............................. 64-69 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Infrastructure Fund............................................................ 70-71 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet .................................................................................... 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.................................................................................. 73 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Hotel/Motel Tax Fund..................................................................................... 74 Motor Fuel Tax Fund...................................................................................... 75 -- Foreign Fire Insurance Fund............................................................................ 76 PromenadeTIF Fund...................................................................................... 77 PROPRIETARY FUNDS MAJOR ENTERPRISE FUNDS Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual - Waterworks System Fund............................................. 78 Schedule of Operating Expenses - Budget and Actual - Waterworks System Fund............................................................................. 79 _ Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual - Sports Core Fund.......................................................... 80 Schedule of Operating Revenues - Budget and Actual - SportsCore Fund.......................................................................................... 81 Schedule of Operating Expenses - Budget and Actual - SportsCore Fund.......................................................................................... 82-84 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Pa e s _ FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) PROPRIETARY FUNDS (Continued) INTERNAL SERVICE FUNDS Combining Statement of Net Assets................................................................ 85 Combining Statement of Revenues, Expenses and — Changes in Net Assets................................................................................... 86 Combining Statement of Cash Flows............................................................... 87-88 _ Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual Self-Insurance Fund................................................................................... 89 GarageFund.............................................................................................. 90 Capital Replacement Fund.......................................................................... 91 FIDUCIARY FUNDS — PENSION TRUST FUNDS Combining Statement of Plan Net Assets......................................................... 92 Combining Statement of Changes in Plan Net Assets....................................... 93 Schedule of Changes in Plan Net Assets - Budget and Actual PolicePension Fund................................................................................... 94 Firefighters' Pension Fund.......................................................................... 95 STATISTICAL SECTION -' Financial Trends NetAssets by Component.................................................................................... 96 Changein Net Assets ........................................................................................... 97-98 Fund Balances of Governmental Funds................................................................. 99-100 _ Changes in Fund Balances of Governmental Funds............................................... 101-102 Revenue Capacity Assessed and Actual Estimated Value of Taxable Property................................... 103 _ Property Tax Rates - Direct and Overlapping Governments.................................. 104 Principal Revenue Taxpayers................................................................................ 105 Direct and Overlapping Sales Tax Rates............................................................... 106 — VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION (Continued) Debt Capacity —' Ratios of Outstanding Debt by Type..................................................................... 107 Schedule of Direct and Overlapping Bonded Debt................................................ 108 Legal Debt Margin Information............................................................................ 109 Demographic and Economic Information Demographic and Economic Information.............................................................. 110 _ Principal Employers.............................................................................................. 111 Retail Sales Volume - Top 25 Illinois Communities.............................................. 112 Sales Tax Receipts - Cash Basis ........................................................................... 113 State Sales Tax Receipts by Month - Cash Basis................................................... 114 Non-Home Rule Sales Tax Receipts by Month - Cash Basis................................. 115 SalesTax by Category.......................................................................................... 116 Non-Home Rule Sales Tax by Category............................................................... 117 Operating Information Budgeted Full-Time Equivalent Employees .......................................................... 118-119 OperatingIndicators............................................................................................. 120 CapitalAsset Statistics......................................................................................... 121 i �. VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2010 6- John W. Craig, Village President Charlotte K. Pruss, Village Clerk 6. BOARD OF TRUSTEES Stelios Aktipis Moin Saiyed 6. James Carson Gerald Wolin Mark M. Moy Elaine Zannis �- VILLAGE MANAGER I David Niemeyer, Village Manager FINANCE DEPARTMENT Sharon Dangles, Finance Director/Treasurer L w k w. i V �w - 1- L Village of Oak Brook Organization Chart Residents January 2011 of Oak Brook 771 Village Clerk Village President and Board of Trustees Village Manager Village Attorney Boards and Commissions Public Works 1 Community Assistant Village Oak Brook Public Sports Core Finance Director Police Chief Fire Chief Engineering Development Manager Library Director Director Director Director - 11 - - Certificate of Achievement for Excellence 1n Financial l Reporting Presented to Village of Oak Brook Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31,2009 -- 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. �E aPfi rc QP YIEv��s AND MWA , President � G�RP�AkTI�f, x, ',S Executive Director OF 044. P d 90 � f May 4, 2011 O y G O OOUNTI ' Village of 7ak Brook President and Board of Trustees --200 oak Brook Road Village of Oak Brook Oak Brook,IL 60523-2255 Oak Brook, Illinois 60523 Website www.oak-brook.org Administration Dear President and Board of Trustees: 630.368.5000 FAX 630.368.5045 We are pleased to present to you the Comprehensive Annual Financial Community Report (CAFR) of the Village of Oak Brook for the year ended December Development 31, 2010. Accordingto mandated local ordinances and state statutes it is 630.368.5101 FAX 630.368.5128 required that a complete set of financial statements be published and presented in conformance with accounting principles generally accepted in Engineering the United States of America (GAAP) and audited in accordance with Department auditing standards generally accepted in the United States of America and 630.368.5130 FAX 630.368.5128 those standards'applicable to audits performed in accordance with Government Auditing Standards by licensed independent certified public '-` Fire Department aCCOUEntalnt5. 630.368.5200 FAX 630.368.5251 Responsibility for both the accuracy of the presented data and the Police Department connpleteness and fairness of the presentation, including all disclosures, 630.368.8700 rest with the management of the Village. We believe to the best of our FAX 630.368.8739 knowledge, as presented, is accurate in all material respects and presented Public works in a manner designed to fairly set forth the financial position and results of Department the operations. 630.368.5270 —FAX 630.368.5295 Management of the Village is responsible for establishing and maintaining Oak Brook internal controls designed to ensure that the assets of the Village are Public Library protected from loss,theft or misuse and to ensure that sufficient,reliable, adequate accounting data is compiled for the preparation of financial 600 Oak Brook Road statements in conformity with GAAP. Internal accolmtiing controls have c c Brook,IL 60523-2200 been designed to provide reasonable rather than absolute assurance that 630.368.7700 FAX 630.3368.7768.77 04 the financials statements will be free from material misstatement. We believe that the Village's internal controls adequately safeguard assets and ._gk Brook Sports Core provide reasonable assurance of properly recorded financial transactions. Bath&Tennis Club In addition, the Village maintains budgetary controls. The objective of 700 Oak Brook Road these controls is to ensure compliance with legal provisions embodied in (ra c Brook,IL 60523-4600 630.368.6420 the annual budget approved by the Village Board. All disbursements FAX 630.368.6439 receive approval fi•om the Board of Trustees. The Village also maintains an encumbrance system that is used as an extension of formal budgetary Golf Club integration. 2606 York Road ( c Brook,IL 60523-4602 •- 630.368.6400 FAX 630.368.6419 - iv - - 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 municipal services including general government,public safety (police and fire), — public works,road maintenance,community development and recreation facilities and a free public library. For additional information concerning the Village, please visit our website at www.oak-brook.or . 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 Oak Brook _ Center, one of the leading outdoor shopping centers in the United States. These factors, as well as the performance of the Illinois economy over times, 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 ut- ofstate locations. The general economic outlook will remain conservative as we are now in a state of recovery. One of our major revenue sources, sales tax revenue, ended the year $1.5 million over budget due to a conservative budget and having an increase in sales tax numbers compared to 2009 in the later part of the year. The Village Board and staff have been working on balancing the long-terra budget of the General Corporate Fund. The Village Board and staff continue to look at additional cost reduction strategies in order to maintain cash reserves at the six month policy level and to balance the long-term operating budget of the Village. - vi - — _ Long-teem 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 VilIage's pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated amivally, includes a long-range schedule of roadway maintenance activities as well as cost proj ections 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. 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 stiuct ued according to cost centers (called "programs") and sets the spending plan for the coining 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 as having sufficient time to address any economic downturns. The soundness of this financial policy has proven itself as the Village has been able to maintain adequate cash reserves in this recessionary environment. - vii - Major Initiatives In 2010, the Village completed several water main projects, purchase of additional security cameras,key scan door entry system for added safety, irrigation at the soccer fields, purchase of a greens mower at the golf — course, roadway improvements and the purchase of three Police Tahoes for the replacement of vehicles. Included in the 2011 budget is the 2011 paving program, equipment replacement items for various departments, — numerous municipal building improvements, several water main projects and payments related to the Village's financial obligation for the I-88/22°d Street Bridge Project. The 2011 capital budget in the General Fund have been deferred to later years as indicated in the Five-Year Financial report. In 2011 and after the Five-Year Financial Plan includes the majority of the ` Village's obligation for its share of the 1-88/22'd Street Bridge Project, continuation of the annual paving program, improvements to the Village's safety pathway system and roadways,replacement or repair of the Fire ` Department ladder truck, replacement of the roof at the Public Works facility, Old Butler School improvements, outlays for water inain replacements and maintenance expenses for Reservoirs A and B. 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, 2009. — 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 successfiilly obtained the Certificate of Achievement for 33 consecutive years. We believe that our current Report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. The preparation of this report could not be published 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 - viii - — 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. Sharon Dangles Finance Director � ix - INDEPENDENT AUDITOR'S REPORT Certified Public Accountants & Business Advisors S*Ikich,. Members of American Institute of Certified Public Accountants 998 Corporate Boulevard -Aurora, IL 60502 INDEPENDENT AUDITOR'S REPORT The Honorable President Members of the Board of Trustees Village of Oak Brook Oak Brook, Illinois We have audited the accompanying 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 (the Village) as of and for the year ended December 31, 2010, which collectively comprise the Village's basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the management of the Village of Oak Brook, Illinois. Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic 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, 2010, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 6- The Management's Discussion and Analysis and the required supplementary information listed in the accompanying table of contents are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have �- applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However,we did not audit the information and express no opinion on it. - 1 - Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook, Illinois' basic financial statements. The combining and individual fund financial statements and schedules as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The prior year comparative information has been derived from the Village of Oak Brook, Illinois' 2009 financial statements and, in the prior auditor's report dated June 18, 2010, the prior auditor expressed unqualified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information. The information contained in the introductory and statistical sections has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion thereon. Ld Aurora, Illinois April 11, 2011 - 2 - GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS k a 1 { i VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS December 31,2010 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, 2010. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Transmittal Letter (beginning on page iv) and the Village's Financial Statements (beginning L on page 3). 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), L (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. HIGHLIGHTS Financial Highlights • For the year ending December 31, 2010, the Village's assets exceeded liabilities by $106.3 million(net assets). • The governmental activities reported total net assets of$76.2 million, which is a decrease of 1.3 million, or 1.6%, in comparison to the prior year. The unrestricted portion of the net assets is $17.4 million or 22.9% of the total. • The business-type activities reported total net assets of $30.1 million, which is a slight increase of$.1 million, or .33% compared to last year. Approximately 11.9% of the total, or$3.6 million is unrestricted. • The Village's total net assets decreased by $1.2 million, or 1.1% compared to the prior year. • The Village had a total of$21.0 million of unrestricted net assets. • Total revenues increased$2.7 million, or 11.3% compared to the prior year. • Total expenses decreased$7.1 million, or 22.7%, in comparison to the prior year. (See independent auditor's report) - MD&A 1 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 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 3-5) distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village reflect the Village's basic services, including administration, police, fire and emergency medical services, engineering, public works, library, and community development. The business-type activities of the Village, which are based on a fee for service designed to cover all or most of the cost of operation, include the waterworks system and operations of the Oak Brook Sports Core. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements to be more familiar. The focus of the presentation is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. (See independent auditor's report) - MD&A 2 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 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. r 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 16 through 19 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. The basic proprietary fund financial statements can be found on pages 10 through 13 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for 6' proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters' Pension Fund. (See independent auditor's report) - MD&A 3 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The basic fiduciary fund financial statements can be found on pages 14 and 15 of this report. Infrastructure Assets Prior to 2003, the Village's largest group of assets (infrastructure assets- roads, bridges, storm ... sewers, etc.) were not reported nor depreciated in governmental financial statements. GASB Statement No. 34, which was implemented in 2003, requires that these assets be valued and reported within the Governmental column of the Government-wide Statements. Additionally, the Village must elect to (1) depreciate the assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity (modified approach). The Village has chosen to depreciate assets over their useful life. If a road project is considered maintenance-a recurring cost that does not extend the original 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 16 through 50 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village's progress in funding its obligation to provide benefits to its employees. Required supplementary information can be found on pages 58 through 62 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds, and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 63 through 95 of this report. Financial Analysis of the Village as a Whole Beyond presenting current year financial information in the government-wide and major individual fund formats, the Village also presents comparative information from the prior year in the Management's Discussion and Analysis. By doing so, the Village is providing an additional means of analyzing its financial condition and financial position as of December 31, 2010. GOVERNMENT-WIDE STATEMENTS .. The Government-wide Financial Statements were designed so that the user can determine if the _ Village's financial position has improved or deteriorated from the prior year. The Village's overall financial condition has remained stable. (See independent auditor's report) - MD&A4 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Summary of Net Assets The following table reflects a Summary of Net Assets for fiscal years 2010 and 2009. Table 1 ` Statement of Net Assets As of December 31, 2010 and 2009 (in millions) Governmental Business-Type Total Primary Activities Activities Government 2010 2009 2010 2009 2010 2009 Current and Other Assets $ 29.1 $ 26.3 $ 4.1 $ 5.9 $ 33.2 $ 32.2 Capital Assets 61.6 62.7 27.2 25.5 88.8 88.2 Total Assets 90.7 89.0 31.3 31.4 122.0 120.4 Long-Term Liabilities 11.6 5.2 0.9 0.7 12.5 5.9 Other Liabilities 2.9 6.3 0.3 0.7 3.2 7.0 Total Liabilities 14.5 11.5 1.2 1.4 15.7 12.9 Net Assets: Invested in Capital Assets, Net of Debt 55.3 60.6 26.5 24.5 81.8 85.1 Restricted 3.5 - - - 3.5 - Unrestricted 17.4 16.9 3.6 5.5 21.0 22.4 Total Net Assets S 76.2 77.5 $ 30.1 $ 30.0 $ 106.3 $ 107.5 The Village's combined net assets decreased by $1.2 million from $107.5 to $106.3 million during 2010. The decrease in net assets of governmental activities is primarily attributed to a $4.2 million long-term liability recorded under a TIF (Tax Increment Financing) agreement with various developers for the Promenade at 22"d Street and Meyers Road. The increase in net assets of business-type activities is primarily due to the capitalization of fixed assets that the Sports Core purchased in 2010. The invested in capital assets, net of related debt is the largest portion of net assets. This represents capital assets (land, buildings, improvements, equipment, infrastructure and construction in progress), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The Village uses these capital assets to provide services to its citizens and these assets are not available for future spending. For more detailed information, see the Statement of Net Assets on page 3. (See independent auditor's report) - MD&A 5 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Summary of Changes in Net Assets The following table summarizes the revenues and expenses of the Village's activities for 2010 and 2009: .: Table 2 Changes in Net Assets For the Fiscal Year Ended December 31, 2010 and 2009 (in millions) Governmental Business-Type Total Primary Activities Activities Government 2010 2009 2010 2009 2010 2009 REVENUES Program Revenues: Charges for Services $ 2.5 $ 2.0 $ 7.6 $ 7.3 $ 10.1 $ 9.3 Grants and Contributions 1.0 0.3 - - 1.0 0.3 General Revenues: Sales and Local Use Taxes 16.1 14.2 - - 16.1 14.2 Utility Taxes 4.7 4.9 - - 4.7 4.9 Other Taxes 2.3 2.5 - - 2.3 2.5 Investment Income 0.1 0.1 - - 0.1 0.1 Other - - - - - - Total Revenues 26.7 24.0 7.6 7.3 34.3 31.3 EXPENSES General Government 3.9 5.3 - - 3.9 5.3 Public Safety 13.2 11.9 - - 13.2 11.9 Public Works 4.4 11.9 - - 4.4 11.9 Culture and Recreation 1.7 1.7 - - 1.7 1.7 Waterworks System - - 4.4 4.0 4.4 4.0 Sports Core - - 3.1 3.5 3.1 3.5 Interest on Long-Term Debt 0.4 0.1 - - 0.4 0.1 Total Expenses 23.6 30.9 7.5 7.5 31.1 38.4 Change in Net Assets $ 3.1 $ (6.9) $ 0.1 $ (0.2) $ 3.2 $ (7.1) Total Net Assets $ 76.2 $ 77.5 $ 30.1 $ 30.0 $ 106.3 $ 107.5 Total revenues increased $3.0 million, or 9.6 %, compared to the prior year. Total expenses decreased 7.3 million, or 19.0%, compared to the prior year. (See independent auditor's report) - MD&A6 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Governmental Activities 6— The net assets of the Villages governmental activities decreased by $1.3 million. The decrease in the governmental activities invested in capital assets net of related debt is $5.3 million or 8.7% compared to the prior year. The following chart shows revenues by source of governmental activities by percent of total revenues. 2010 Revenues By Source- Governmental Activities Other Other.46% Charges for Taxes Services 8.58% 9.49% Grants and Contributions Utility Taxes 3.82% 17.48% _-- Sales and Use Taxes 60.17% (See independent auditor's report) - MD&A 7 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) The following is a chart of revenues by source for governmental activities for fiscal years 2010 and 2009. Revenues by Source-Governmental Activities Other •.• .faxes I 0<her ■2009 Uti�r�ty faxes I ®2010 gales and Use Saxes 1 is and Go��r�buCio�s Gran arges for geN1ces Gh $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 '1 Millions i Current Year Impacts Revenues—Governmental Activities •.. For the fiscal year ended December 31, 2010, revenues totaled $26.7 million, an increase of$2.7 million from 2009. Revenue from sales and use taxes, which continues to be the Village's largest revenue source, amounted to more than $16.1 million or 60.1% of total revenue, an increase of $1.9 million or 13.4% from 2009. The recovery of the recessionary economy resulted in more consumer spending, which reflected an increase in our sales tax collections. Utility taxes, which include the taxes imposed on electric, natural gas, and telecommunications services, were $4.7 million or 17.5% of total revenues. This represents a decrease of $0.2 million from the comparable amount in 2009, and is mostly attributable to decreased receipts from the Village's 6% Telecommunication Tax. The "other taxes" classification includes a number of different revenue sources including income taxes, personal property replacement taxes, and hotel taxes. For 2010, these revenues were $2.3 million or 8.6% of total revenues, with no significant change from the prior year. (See independent auditor's report) - MD&A 8 - f VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Charges for services, which include revenue such as building/inspection fees, permit fees, Lambulance fees have increased $.5 million due to the slow recovery of the economy on the building industry. Investment income is still experiencing low investment yields and no significant change compared to 2009. Expenses by Function -Governmental Activities L $14 $12 i $ a 2010 $8 _ O $6 ■2009 $4 $2 �. �e���er\\G�a&e,��\G�o.SG�ea�\o,� \��ele5� LGo Q�a \ �ee Gem CI\Y Expenses by Function—Governmental Activities Expenses for the Village of Oak Brook for Governmental activities amounted to a total of$23.6 million in 2010, a decrease of$7.3 million from 2009. As required by GASB Statement No. 34, the expense totals include depreciation expense of $1.8 million for governmental activities. Depreciation expense, which includes depreciation on infrastructure, has been allocated over the most appropriate functional categories. Public Safety (Police)—these expenses reported in governmental activities increased $.3 million, or 5.2% compared to the prior year due to a settlement on pay increases for the Police union contract. Public Safety (Fire) — these expenses reported in governmental activities increased $.7 million, or 14.6% compared to the prior year. This was due to an increase in personnel costs for an accrual on retroactive pay increases due to a union contract that expired 12/31/07. The pension contributions increased $.1 million compared to the prior year. Public works expenses were $4.4 million, a decrease of $7.5 million from 2009. The $7.5 million is attributable to the intergovernmental agreement for improvements to 22nd Street. �. These amounts were expenses in 2009 because they did not result in a capital asset for the Village as the 22"d Street improvements are under the jurisdiction of the Illinois Department of LTransportation. (See independent auditor's report) MD&A 9 - L i VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Culture and recreation expenses were $1.7 million, which is not a significant change comparable to 2009. Additionally, the General Fund had reduced expenses $1.5 million, or 27.6% compared to the prior year. The Village made a concerted effort to continue on reducing expenditures due to the unforeseen future in the current economic environment. Business-type Activities The business-type activities in net assets increased slightly by $.1 million. The invested in capital assets, net of related debt increased by $2.0 million compared to last year mainly due to infrastructure projects that occurred in 2010. For business-type activities, revenues for the waterworks system were $5.0 million which increased $1 million compared to the prior year. This was due to two water rate increases in 2010 and increased water consumption. Revenues for Sports Core were $2.5 million, which decreased $.8 million compared to the prior year. This was mainly due to bad weather conditions which affected rounds of golf and food operations at -� the Golf Course. For business-type activities, expenses for the waterworks system were $4.5 million or 59.2% of total expenses, which is an increase of$0.5 million from 2009. Sports Core expenses were $3.1 million or 40.8% of total expenses, which is a decrease of$0.4 million from 2009 due to reduced spending based on lower than expected revenues. FINANCIAL ANALYSIS OF THE VILLAGES FUNDS Governmental Funds As noted earlier, the Village of Oak Brook uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of December 31, 2010, the governmental funds (as presented on the balance sheet on page 6) had a combined fund balance of $22.6 million, which is an increase of $2.4 million over the prior year. The economy has shown some signs of recovery in consumer spending and user fees used to support the General Fund. The Infrastructure Fund, which is primarily supported by the Village's non-home rule sales tax, had an increase of$.6 million due to higher receipts collected on non-home rule sales taxes. The non-major governmental funds had an increase of $.5 million due primarily to the Village saving funds for expenditures in the Hotel Beautification District in 2010. Proprietary Funds Net assets for the Village's two business-type activities increased $0.1 million from 2009 (see _ pages 10-11). In the Water Fund, net assets increased due to an increase in capital assets and reduction in total liabilities. In the Sports Core Fund, net assets decreased by $0.5 million due to decreased operating revenues on bad weather conditions in 2010. (See independent auditor's report) - MD&A 10 - i VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) In 2003, the Village Board policy was to require budget transfers when an individual program or fund exceeds its budget in total. In addition to these program transfers, beginning in 2004 the Village Board approved an ordinance requiring a budget transfer for any individual line item account that exceeded its budget by more than 110%. In 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 seven occasions during the year. Table 3 _ General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2010 REVENUES AND TRANSFERS Intergovernmental $ 10,753,915 $ 10,753,915 $ 12,263,433 Utility Taxes 5,125,000 5,125,000 4,669,414 Licenses & Permits 772,500 772,500 843,139 Charges for Services 961,150 961,150 943,638 Other 901,945 901,945 841,160 Total Revenues and Transfers 18,514,510 18,514,510 19,560,784 EXPENDITURES General Government 4,315,800 3,986,455 3,517,696 Public Safety 11,895,390 12,117,980 12,495,790 Public Works 698,495 732,690 694,497 Culture and Recreation 933,175 933,175 856,049 Debt Service 300,175 300,175 297,529 Capital Outlay 302,500 375,060 357,026 Transfers out 68,000 68,000 - Total Expenditures and Transfers 18,513,535 18,513,535 18,218,587 Change in Fund Balance $ 975 $ 975 $ 1,342,197 Intergovernmental revenues were over budget due primarily to sales tax revenue receipts higher than budget projections due to an increase in consumer spending. Charges for services were over budget due to increased activity in the building sector and implementing the adjudication program in 2010. Licenses and permits were over budget due to increased permit activity. (See independent auditor's report) - MD&A 11 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Actual expenditures were $.2 million below of the original and revised budget. Due to the unforeseen future in the economic environment, the Village limited spending to only essential items in 2010, number of positions continued to be left vacant, and deferred a number of capital projects. Capital Assets The following schedule reflects the Village's capital asset balances as of December 31, 2010 and 2009. Table 4 Capital Assets As of December 31, 2010 and 2009 (in millions) Governmental Business-Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Land and Land Right of Way $ 32.7 $ 32.3 $ 8.3 $ 8.3 $ 41.0 $ 40.6 Buildings and Land Improvements 18.9 18.8 8.6 8.6 27.5 27.4 Machinery,Vehicles, and Equipment 9.0 8.7 5.1 5.0 14.1 13.7 Infrastructure 33.3 33.5 20.2 18.2 53.5 51.7 -� Construction in Progress - - 0.4 0.2 0.4 0.2 93.9 93.3 42.6 40.3 136.5 133.6 _ Less: Accumulated Depreciation (32.3) (30.6) (15.4) (14.8) (47.7) (45.4) Total $ 61.6 $ 62.7 $ 27.2 $ 25.5 $ 88.8 $ 88.2 At year-end, the Village's investment in capital assets (net of accumulated depreciation) for both its governmental and business-type activities was $88.8 million, an increase of$.6 million from 2009 (see Note 5 in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2010 included the following: • Purchase for additional security cameras, update lighting for energy efficiencies, three police vehicles, and the purchase of key scan door system for safety are among the additions totaling $.7 million that were purchased for use in governmental activities. • For business-type activities, the majority was due to water main improvements at 35th Street and Timber Trails, one golf course maintenance equipment item was replaced, irrigation at the soccer fields, and a pool heater was purchased at the Sports Core. (See independent auditor's report) - MD&A 12 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Long-Term Debt i As a non-home rule community, the Village's legal general obligation debt limit is 8.625 percent of equalized assessed valuation (EAV), or $147,958,021 based on January 1, 2009 EAV of $1,739,281,404. As of December 31, 2010, the Village has $2,055,000 of debt outstanding attributed to two 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, 2010 Governmental Business-Type Activities Activities Total General Fund Certificates: Series 2009 (Refunding) $ 1,830,000 $ - $ 1,830,000 Series 2003 (Refunding) - 225,000 225,000 Note Payable 8,733,180 506,511 9,239,691 Total $ 10,563,180 $ 731,511 $ 11,294,691 The General Fund Certificates are general obligations of the Village but are not secured by a pledge of property taxes. The General Fund Certificates, Series 2009 (refunding) received a rating of Aa2 from Moody's Investor Service, Inc.. With respect to the 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. The Village has two note payables, in which one is to the Illinois State Toll Highway in connection with the intergovernmental agreement between the Village, the Tollway and the Illinois Department of Transportation. The Village has three remaining annual installments until •- it's retired in 2013. The balance on the Illinois State Toll Highway note payable at December 31, 2010 is $5.0 million. The Village's second note payable is to the Tax Increment Financing L (TIF) District developers for certain improvements in the TIF area located at the Promenade (22°d Street and Meyers Road). The TIF Note is not a general obligation to the Village and it expires in 2024. Repayment of the note is limited to the availability of pledged taxes. The balance on the TIF redevelopment agreement at December 31, 2010 is $4.2 million. i�. (See independent auditor's report) { - MD&A 13 - .l VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 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. During the current fiscal year, unassigned fund balance in the General Fund increased from $10.8 million to $11.7 million primarily due to an increase in the Village's sales tax receipts compared to the prior year as explained previously. The Village's intent is to hold this fund balance in reserves and was not used in the 2011 fiscal year budget. The general economic outlook will remain conservative and that is how we compiled the 2011 budget. The Illinois unemployment rate was approximately 9% on December 31, 2010, the rate in DuPage County was 8.3%, lower than the state-wide rate. The following highlights the budget changes that impact 2011, and some of which will not have full impact until 2012, as we look to improve the long-term financial future of Oak Brook: • For the second year, the budget includes a recommendation to utilize $300,000 from the hotel/motel fund to pay for a portion of a police beat in the hotel district. These funds in the past have been formerly used for beautification projects. — • The rates imposed for a number of license and fee categories, such as liquor licenses, ambulance fees, and building permits are projected to increase slightly. • The Village Board approved the expansion of the adjudication program for miscellaneous fines,which are estimated to generate an additional $55,000 annually. • In order to reduce costs, the Village will be offering an early retirement incentive program. Some full-time positions will be left vacant for 2011, replaced with part-time positions or contractual workers. — • A pay plan study will be conducted by an outside firm to review and make recommendations to the current Salary Administration Plan. The recently settled police contract has an across the board increase of 2.5% and merit increases up to 4% for those moving through the grade system for 2011. Other union contracts are still being negotiated. • Health insurance premiums for non-union employees are budgeted to increase from 17.5% to 20%. Continued increases in employee cost participation are a major goal in ongoing union negotiations. • Continuation of reviewing the vehicle fleet inventory as well as the replacement schedule that was performed in conjunction with the 2011 Budget. As a result of this process, the expected lives of a number of vehicles were extended to future years. The Village Board and staff diligently look at additional cost reduction strategies on continually maintaining cash reserves at the six month policy level and to balance the long-term operating budget of the Village. — (See independent auditor's report) - MD&A 14 - .�- VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) 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 Sharon A. Dangles, Finance Director/Treasurer, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. k (See independent auditor's report) - MD&A 15 - I (This page is intentionally left blank.) i VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF NET ASSETS December 31,2010 Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 20,408,511 $ 4,546,159 $ 24,954,670 Receivables(net of allowances for uncollectibles) _ Sales taxes 4,797,301 - 4,797,301 Utility taxes 963,055 - 963,055 Accounts 790,435 - 790,435 Billed and unbilled water sales - 526,858 526,858 Allotments 18,741 - 18,741 Other 422,225 62,952 485,177 Advances to(from)other funds 1,917,000 (1,917,000) - Internal balances (654,127) 654,127 - Inventories 55,151 153,321 208,472 Prepaid expenses 354,184 50,300 404,484 Capital assets Nondepreciable 32,666,435 8,644,201 41,310,636 Depreciable,net of accumulated depreciation 29,001,118 18,573,544 47,574,662 Total assets 90,740,029 31,294,462 122,034,491 LIABILITIES Accounts payable 744,539 328,809 1,073,348 Accrued payroll 869,317 31,559 900,876 -- Accrued interest 145,019 603 145,622 Claims payable 118,930 - 118,930 Deposits 908,433 12,170 920,603 Unearned revenue 169,855 29,325 199,180 Long-term liabilities Due within one year 2,616,635 354,571 2,971,206 Due in more than one year 8,957,607 462,674 9,420,281 Total liabilities 14,530,335 1,219,711 15,750,046 NET ASSETS Invested in capital assets,net of related debt 55,331,273 26,486,234 81,817,507 Restricted for Maintenance of roadways 876,654 - 876,654 Public safety 172,272 - 172,272 Culture and recreation 2,407,119 - 2,407,119 Unrestricted 17,422,376 3,588,517 21,010,893 TOTAL NET ASSETS $ 76,209,694 $ 30,074,751 $ 106,284,445 See accompanying notes to financial statements. -3 - VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31,2010 Program Revenues FUNCTIONS/PROGRAMS Charges Operating Capital PRIMARY GOVERNMENT Expenses for Services Grants Grants Governmental Activities General government $ 3,863,592 $ 1,411,249 $ 87,615 $ - Public safety 13,173,297 1,091,236 - - Public works 4,404,543 13,495 258,748 674,368 Culture and recreation 1,660,741 19,692 - - Interest 394,761 - - - _ Total governmental activities 23,496,934 2,535,672 346,363 674,368 Business-Type Activities Waterworks System 4,464,218 5,093,885 - - Sports Core 3,075,925 2,547,383 - - Total business-type activities 7,540,143 7,641,268 - - TOTAL PRIMARY GOVERNMENT $ 31,037,077 $ 10,176,940 $ 346,363 $ 674,368 -4- _Net(Expense)Revenue and Change in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (2,364,728) $ - $ (2,364,728) (12,082,061) - (12,082,061) (3,457,932) - (3,457,932) (1,641,049) - (1,641,049) (394,761) - (394,761) (19,940,531) - (19,940,531) 629,667 629,667 (528,542) (528,542) 101,125 101,125 (19,940,531) 101,125 (19,839,406) General Revenues Taxes Property 360,467 - 360,467 • Replacement 283,656 - 283,656• Sales,local use 16,071,333 - 16,071,333 Utility 4,669,414 - 4,669,414 Hotel/motel 881,887 - 881,887• Income 684,866 - 684,866• Other 80,171 - 80,171• Investment income 110,837✓ 26,225 137,062 Gain(loss)on sale of capital assets - (89,487) (89,487) Miscellaneous 12,158✓ - 12,158 Total 23,154,789 (63,262) 23,091,527 CHANGE IN NET ASSETS 3,214,258 37,863 3,252,121 NET ASSETS,JANUARY 1 77,454,159 30,036,888 107,491,047 Prior period adjustment (4,458,723) - (4,458,723) NET ASSETS,JANUARY 1,RESTATED 72,995,436 30,036,888 103,032,324 NET ASSETS,DECEMBER 31 $ 76,209,694 $ 30,074,751 $ 106,284,445 See accompanying notes to financial statements. -5 - VILLAGE OF OAK BROOK,ILLINOIS GOVERNMENTAL FUNDS BALANCESHEET December 31,2010 Nonmajor Governmental Total _ General Infrastructure Funds Governmental ASSETS Cash and investments S 9,160,002 $ 3,021,718 $ 3,635,656 $ 15,817,376 Receivables Sales taxes 3,251,801 1,545,500 - 4,797,301 Utility taxes 963,055 - - 963,055 Accounts 205,435 585,000 - 790,435 Allotments - - 18;741 18,741 _ Other 325,963 - 66,150 392,113 Advances to other funds 1,917,000 - - 1,917,000 Prepaid items - 337,699 - 337,699 _ TOTAL ASSETS $ 15,823,256 $ 5,489,917 $ 3,720,547 $ 25,033,720 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 378,176 $ 72,788 $ 47,576 $ 498,540 Accrued payroll 831,429 23,812 - 855,241 Deposits payable 908,433 - - 908,433 Deferred revenue 80,168 50,673 - 130,841 Total liabilities 2,198,206 147,273 47,576 2,393,055 FUND BALANCES Nonspendable Advances 1,917,000 - - 1,917,000 _ Prepaid items - 337,699 - 337,699 Restricted Infrastructure - 5,004,945 - 5,004,945 Highways and streets - - 876,654 876,654 -' Public safety - - 172,272 172,272 Culture and recreation - - 2,407,119 2,407,119 Economic development - - 216,926 216,926 Unassigned General Fund 11,708,050 - - 11,708,050 Total fund balances 13,625,050 5,342,644 3,672,971 22,640,665 TOTAL LIABILITIES AND FUND BALANCES $ 15,823,256 $ 5,489,917 $ 3,720,547 $ 25,033,720 See accompanying notes to financial statements. -6- VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS December 31, 2010 FUND BALANCES OF GOVERNMENTAL FUNDS $ 22,640,665 _ 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 59,623,648 Interest payable is not due and payable in the current period and,therefore, is not reported in the governmental funds (145,019) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: Installment contracts payable (1,830,000) Notes payable (8,733,180) Compensated absences payable (974,886) Net other postemployment benefit obligation (24,858) A portion of the net assets of the internal service funds are included in the governmental activities in the statement of net assets Capital assets 2,043,905 Other net assets 3,609,419 NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 76,209,694 See accompanying notes to financial statements. - 7 - VILLAGE OF OAK BROOK,ILLINOIS GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES For the Year Ended December 31,2010 Nonmajor Total Governmental Governmental General Infrastructure Funds Funds REVENUES Intergovernmental $ 12,263,433 $ 674,368 $ 728,914 $ 13,666,715 Non-home rule sales tax - 4,833,425 - 4,833,425 Utility taxes 4,669,414 - - 4,669,414 Hotel/motel taxes - - 881,887 881,887 Licenses and permits 843,139 - - 843,139 Charges for services 943,638 - - 943,638 Fines and penalties 229,246 - - 229,246 Investment income 92,481 7,223 11,133 110,837 Miscellaneous 519,433 13,458 - 532,891 Total revenues 19,560,784 5,528,474 1,621,934 26,711,192 EXPENDITURES Current _. General government 3,517,696 - 5,094 3,522,790 Public safety 12,495,790 - 41,148 12,536,938 Public works 694,497 3,342,274 - 4,036,771 _ Culture and recreation 856,049 - 680,804 1,536,853 Capital outlay 357,026 25,013 - 382,039 Debt service _ Principal 245,000 1,501,163 23,100 1,769,263 Interest and fiscal charges 52,529 - 410,468 462,997 Total expenditures 18,218,587 4,868,450 1,160,614 24,247,651 NET CHANGE IN FUND BALANCES 1,342,197 660,024 461,320 2,463,541 FUND BALANCES,JANUARY 1 12,282,853 4,682,620 3,211,651 20,177,124 FUND BALANCES,DECEMBER 31 $ 13,625,050 $ 5,342,644 $ 3,672,971 $ 22,640,665 See accompanying notes to financial statements. - 8 - VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2010 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 2,463,541 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures; however, they are capitalized and depreciated in the statement of activities 557,775 The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 1,769,263 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Depreciation, including internal service funds (1,763,702) Gain on disposal of capital assets 14,385 Change in compensated absences (45,852) Change in interest payable 68,236 Change in net postemployment benefits obligation (46,400) The change in net assets of certain activities of internal service funds, excluding depreciation, is included in governmental activities 197,012 CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 3,214,258 See accompanying notes to financial statements. - 9 - VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31,2010 Business-Type Activities Waterworks Internal System Sports Core Total Service CURRENT ASSETS Cash and investments $ 4,540,078 $ 6,081 $ 4,546,159 $ 4,591,135 Receivables Billed and unbilled water sales 526,858 - 526,858 - Other 1,070 61,882 62,952 30,112 Inventories - 153,321 153,321 55,151 Prepaid expenses 50,300 - 50,300 16,485 Total current assets 5,118,306 221,284 5,339,590 4,692,883 CAPITAL ASSETS Nondepreciable 567,736 8,076,465 8,644,201 - Depreciable,net of accumulated depreciation 14,241,542 4,332,002 18,573,544 2,043,905 Total capital assets 14,809,278 12,408,467 27,217,745 2,043,905 Total assets 19,927,584 12,629,751 32,557,335 6,736,788 CURRENT LIABILITIES Accounts payable 296,625 32,184 328,809 245,999 Accrued payroll 18,656 12,903 31,559 14,076 Accrued interest - 603 603 - Compensated absences payable 39,515 46,219 85,734 11,318 Deposits - 12,170 12,170 - Unearned revenue - 29,325 29,325 39,014 Installment contracts payable - 100,000 100,000 - Note payable 168,837 - 168,837 - _ Claims payable - - - 118,930 Total current liabilities 523,633 233,404 757,037 429,337 LONG-TERM LIABILITIES Advances from other funds - 1,917,000 1,917,000 - Installment contract payable - 125,000 125,000 - Note payable 337,674 - 337,674 - Total long-term liabilities 337,674 2,042,000 2,379,674 - Total liabilities 861,307 2,275,404 3,136,711 429,337 NET ASSETS Invested in capital assets,net of related debt 14,302,767 12,183,467 26,486,234 2,043,905 Unrestricted 4,763,510 (1,829,120) 2,934,390 4,263,546 TOTAL NET ASSETS $ 19,066,277 $ 10,354,347 29,420,624 $ 6,307,451 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 654,127 $ 30,074,751 _ See accompanying notes to financial statements. 10 �- VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31,2010 Business-Type Activities Waterworks Internal System Sports Core Total Service OPERATING REVENUES Charges for services $ 5,039,605 $ 2,547,383 $ 7,586,988 $ 3,350,804 Total operating revenues 5,039,605 2,547,383 7,586,988 3,350,804 ` OPERATING EXPENSES Operations 3,995,311 2,811,757 6,807,068 633,166 Claims and insurance - - - 2,521,671 Miscellaneous - - - 5,449 Depreciation and amortization 438,919 254,323 693,242 338,443 Total operating expenses 4,434,230 3,066,080 7,500,310 3,498,729 OPERATING INCOME(LOSS) 605,375 (518,697) 86,678 (147,925) NONOPERATING REVENUES(EXPENSES) Investment income 25,606 619 26,225 20,535 Gain(loss)on sale of capital assets (89,487) - (89,487) 10,251 Interest expense - (9,845) (9,845) - Total nonoperating revenues(expenses) (63,881) (9,226) (73,107) 30,786 CHANGE IN NET ASSETS 541,494 (527,923) 13,571 (117,139) NET ASSETS,JANUARY 1 18,524,783 10,882,270 6,424,590 NET ASSETS,DECEMBER 31 $ 19,066,277 $ 10,354,347 $ 6,307,451 Adjustment to reflect the consolidation of Internal service fund activities related to enterprise funds 24,292 CHANGE IN NET ASSETS OF BUSINESS-TYPE ACTIVITIES $ 37,863 See accompanying notes to financial statements. - 11 - VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31,2010 Business-Type Activities Waterworks Internal System Sports Core Total Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from internal services transactions $ - $ - $ - $ 3,360,809 Receipts from customers and users 4,918,846 2,522,085 7,440,931 - Payments to suppliers (3,293,675) (1,220,611) (4,514,286) (2,937,029) Payments to employees (673,891) (1,575,198) (2,249,089) (221,691) Net cash from operating activities 951,280 (273,724) 677,556 202,089 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Receipt of interfund loan - 422,000 422,000 - Net cash from noncapital financing activities - 422,000 422,000 - ~ CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES .. Purchase of capital assets (2,384,858) (67,755) (2,452,613) (155,380) Proceeds from sale of capital assets - - 10,251 Principal paid on installment contract payable (168,837) (100,000) (268,837) - _ Interest paid - (10,100) (10,100) - Net cash from capital and related financing activities (2,553,695) (177,855) (2,731,550) (145,129) .. CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (18,297) - (18,297) (14,603) Sale of investments - 8,524 8,524 - .. Interest received 25,606 619 26,225 20,535 Net cash from investing activities 7,309 9,143 16,452 5,932 •. NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (1,595,106) (20,436) (1,615,542) 62,892 _ CASH AND CASH EQUIVALENTS, JANUARY 1 5,226,532 26,058 5,252,590 3,802,989 CASH AND CASH EQUIVALENTS, DECEMBER 31 S 3,631,426 $ 5,622 S 3,637,048 $ 3,865,881 i (This statement is continued on the following page.) -12- VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS(Continued) For the Year Ended December 31,2010 _ Business-Type Activities Waterworks Internal System Sports Core Total Service CASH AND INVESTMENTS Cash and cash equivalents $ 3,631,426 $ 5,622 $ 3,637,048 $ 3,865,881 Investments 908,652 459 909,111 725,254 `— TOTAL CASH AND INVESTMENTS S 4,540,078 S 6.081 S 4.546,159 S 4,591,135 RECONCILIATION OF OPERATING INCOME(LOSS) �- TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ 605,375 $ (518,697) $ 86,678 S (147,925) Depreciation and amortization 438,919 254,323 693,242 338,443 Adjustments to reconcile operating income(loss) to net cash from operating activities Changes in assets and liabilities Accounts receivable (121,656) - (121,656) 1,014 Other receivable 897 (21,138) (20,241) - Inventories - 33,845 33,845 (9,723) Prepaid expenses (50,300) - (50,300) 929 Accounts payable 77,394 (17,420) 59,974 12,084 Accrued payroll and compensated absences 651 (477) 174 13,106 Deposits payable - (7,505) (7,505) - Deferred revenue - 3,345 3,345 (1,169) Claims payable - - - (4,670) NET CASH FROM OPERATING ACTIVITIES $ 951,280 S (273,724) S 677,556 S 202.089 r See accompanying notes to financial statements. - 13- VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS December 31, 2010 — ASSETS Cash $ 335,138 — Investments Illinois Funds 167,722 Money market mutual funds 1,213,521 — Certificates of deposit 103,279 U.S. Treasury securities 4,288,454 U.S. agency securities 16,757,481 State and local obligations 5,240,066 Mutual funds 21,018,863 — Equities 1,353,464 Accrued interest receivable 239,596 Total assets 50,717,584 LIABILITIES Accounts payable 20,429 Total liabilities 20,429 — NET ASSETS HELD IN TRUST FOR — PENSION BENEFITS $ 50,697,155: See accompanying notes to financial statements. - - 14 - VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended December 31, 2010 ADDITIONS Contributions Employer S 1,878,733 Employee 616,888 Total contributions 2,495,621 Investment income Net appreciation in fair value of investments 3,355,104 Interest 1,375,595 s Total investment income 4,730,699 Less investment expense (104,856) Net investment income 4,625,843 Total additions 7,121,464 DEDUCTIONS Benefits and refunds 3,528,672 Administrative 66,535 Total deductions 3,595,207 NET INCREASE 3,526,257 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 47,170,898 December 31 $ 50,697,155 See accompanying notes to financial statements. - 15 - (This page is intentionally left blank.) i i i i i i VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Oak Brook, Illinois (the Village)have been prepared in conformity with accounting principles generally accepted in the United States of America (hereinafter referred to as generally accepted accounting principles (GAAP)), as applied to government units. The Governmental Accounting Standards Board(GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below. a. Reporting Entity The Village operates under a village form of government with an elected Village President and Board of Trustees. Operational management is provided by a professional Village Manager employed by the Board of Trustees. Municipal services include police protection, fire protection, recreation facilities, a free public library, water supply, storm water collection,public works operations, road maintenance, building and inspectional services and general administrative services. As required by generally accepted accounting principles, these financial statements present the Village (the primary government). 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 possesses many of the characteristics of a legally separate government the PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's police employees and because of the fiduciary nature of such activities. The PPERS is reported as a pension trust fund. - 16 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) — Firefighters' Pension Employees Retirement System The Village's firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees and is governed by its pension board. The Village and FPERS participants are — obligated to fund all FPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it possesses many of the characteristics of a legally — separate government, the FPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's firefighters and because of the fiduciary nature of such activities. The — FPERS is reported as a pension trust fund. b. Fund Accounting — The Village uses funds to report on its financial position, changes in its financial position 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. - 17 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government(internal service funds). Pursuant to GASB Statement No. 20, — Accounting and Financial Reporting for Proprietary Funds and Other Government Entities That Use Proprietary Fund Accounting, the Village has chosen to apply all GASB pronouncements as well as those FASB pronouncements issued on or before November 30, 1989 to account for business-type activities and enterprise funds. Fiduciary funds are used to account for assets held on behalf of outside parties, — including other governments, or on behalf of other funds within the government. The Village utilizes pension trust funds which are generally used to account for assets that the Village holds in a fiduciary capacity. C. Government-Wide and Fund Financial Statements The government-wide financial statements(i.e.,the statement of net assets and the statement of activities)report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and used are not eliminated on these statements. Governmental activities,which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities,which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include(1) charges to customers or applicants who purchase,use or directly benefit from goods, services or privileges provided by a given function or segment, and(2)grants and standard revenues that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. — Separate financial statements are provided for governmental funds,proprietary funds and fiduciary funds,even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. - 18 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government-Wide and Fund Financial Statements (Continued) The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. r. The Infrastructure Fund,a capital projects fund,is used to account for revenues and expenditures relative to the construction and maintenance of roadway,drainage and bike trail improvements. The Village reports the following major enterprise funds: The Waterworks System Fund accounts for the revenues and expenses relative to _ the operation of the water utility. The Sports Core Fund accounts for the revenues and expenses relative to the _ operation of the 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 y Pension Fund and Firefighters' Pension Fund. d. Measurement Focus,Basis of Accounting and Financial Statement Presentation _ The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting,as are the proprietary funds and fiduciary funds fund financial statements. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Grants and _ similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenues/expenses directly related to providing enterprise fund services. Incidental revenues/expenses are — reported as nonoperating. - 19 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus,Basis of Accounting and Financial Statement Presentation (Continued) 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. The Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales taxes and telecommunication taxes which use a 90-day period and income taxes -- a 120-day period. 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/unearned revenue on its financial statements. Deferred/unearned revenues arise when potential revenue does not meet both the measurable and available or earned criteria for recognition in the current period. Deferred/uneamed 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/uneamed 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 expenditure/expense and are generally revocable only for failure to comply with prescribed eligibility requirements. These resources are reflected as revenues at the time of receipt or earlier if they meet the eligibility criterion. - 20 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Cash and Investments _ Cash and Cash Equivalents For purposes of the statement of cash flows, the Village's proprietary funds consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Investments In accordance with Governmental Accounting Standards Board Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, nonnegotiable certificates of deposit and investments with maturity of less than one year at date of purchase, if any, are stated at amortized cost. All other investments are stated at fair value. Fair value is based on quoted market prices for the same or similar investments. All investments of the pension trust funds are stated at fair value. £ Inventories Inventories are valued at average cost, not in excess of replacement cost. Inventories in the General Fund and Garage Fund consist of expendable supplies held for consumption; inventories in the Sports Core Fund consist of inventory held for resale. The cost is recorded as an expenditure at the time individual inventory items are utilized or sold. General Fund inventories are equally offset by a fund balance reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. g. Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. h. Capital Assets Capital assets,which include property,plant,equipment and infrastructure assets(e.g., roads,bridges,sidewalks and similar items),are reported in the applicable governmental or .. business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial,individual cost of$5,000 or more and an estimated useful life in excess of one year. _ Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date _ of donation. Infrastructure acquired prior to the implementation of GASB Statement No. 34 is reported on the financial statements. - 21 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) h. Capital Assets (Continued) The costs of normal maintenance and repairs,including street overlays that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business- type activities is included as part of the capitalized value of the assets constructed. Property,plant and equipment is depreciated using the straight-line method over the following estimated useful lives: Assets Years Land improvements 20 Buildings and building improvements 5 - 50 Equipment 5 - 20 Vehicles 2 -20 Infrastructure 20 - 75 i. 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. j. 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. - 22 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k. 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." 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. 1. 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. n. Fund Balance/Net Assets In the fund financial statements, governmental funds report nonspendable fund balance for amounts that are either not in spendable form or legally or contractually required to be maintained intact. Restrictions of fund balance are reported for amounts constrained by legal restrictions from outside parties for use for a specific purpose, or externally imposed by outside entities. None of the restricted fund balance result from enabling legislation adopted by the Village. Committed fund balance is constrained by formal actions of the Village's Board, which is considered the Village's highest level of decision making authority. Formal actions include resolutions and ordinances approved by the Board. Assigned fund balance represents _ amounts constrained by the Village's intent to use them for a specific purpose. The authority to assign fund balance has been delegated to the Village's finance director through the approved fund balance policy of the Village. Any residual fund balance of the General Fund is reported as unassigned. - 23 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) n. Fund Balance/Net Assets(Continued) The Village's flow of funds assumption prescribes that the funds with the highest level of constraint are expended first. If restricted or unrestricted funds are available for spending, the restricted funds are spent first. Additionally, if different levels of unrestricted funds are available for spending the Village considers committed funds to be expended first followed by assigned and then unassigned funds. The Village has established fund balance policies for their governmental funds. It is the policy of the Village that every effort be made to maintain the greater of: (a) an uncommitted cash balance equal to not less than six months of budgeted expenditures for the forthcoming fiscal year, exclusive of budgeted capital projects; or(b) an uncommitted cash balance equal to not less than six months of projected expenditures, exclusive of capital projects,based on the average of the first three years of the most recent Five-Year Financial Plan adopted by the Village Board. 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 investment in the book value of capital assets,less any outstanding debt that was issued to construct or acquire the capital asset. 2. DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds,except the pension trust funds and the Foreign Fire Insurance Tax Fund. Separately held cash and investments for the Foreign Fire Insurance Tax Fund as well as each fund's portion of this pool is included on the statement of net assets as"cash and investments." The deposits and investments of the pension trust funds are held separately from those of other funds. 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,Illinois Funds (created by the Illinois State Legislature under the control of the State Comptroller that maintains a $1 per share value which is equal to the participants fair value), and the Illinois Metropolitan Investment Fund (IMET), a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. 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. - 24 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 2. DEPOSITS AND INVESTMENTS (Continued) a. Deposits — It is the policy of the Village to invest its funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds, using the "prudent person" standard for managing the overall portfolio. The primary objective of the policy is legality, safety(preservation _ of capital and protection of investment principal), liquidity and yield. Village Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank's failure, the Village's deposits may not be returned to it. The Village's investment policy requires pledging of collateral with a fair value of 110% of all bank balances in excess of federal depository insurance with the collateral held by an agent — of the Village in the Village's name. As of December 31, 2010, the Village had uninsured and uncollateralized deposits of$928,380 at one financial institution out of a total bank balance of$1,760,786. _ Police and Firefighters' Pension Funds Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event r of a bank's failure, the Police and Firefighters' Pension Funds' deposits may not be returned to them. The Police and Firefighters' Pension Funds' investment policies — require pledging of collateral with a fair value of 110% of all bank balances in excess of federal depository insurance with the collateral held by an agent of the Police and Firefighters' Pension Fund in the Police and Firefighters' Pension Funds' name. b. Investments As of December 31, 2010,the Village had the following investments and maturities in debt securities. Investment Maturities(in Years) Fair Less Than More Value 1 1-5 6-10 Than 10 IMET $ 6,105,882 $ - $ 6,105,882 $ - $ - Minois Funds 18,073,744 18,073,744 - - - TOTAL $ 24,179,626 $ 18,073,744 $ 6,105,882 $ - $ - - 25 - -- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) b. Investments(Continued) As of December 31,2010,the Police Pension Fund had the following investments and maturities in debt securities. Investment Maturities(in Years) Fair Less More Value Than 1 1-5 6-10 Than 10 U.S.agencies $ 9,022,254 $ 467,437 $ 3,394,467 $ 3,644,969 $ 1,515,381 U.S.Treasuries 3,273,293 653,656 1,107,883 1,511,754 - State and local obligations 2,832,533 - 733,662 1,414,932 683,939 Money market mutual funds 1,081,090 1,081,090 - - - Illinois Funds 27,937 27,937 - - - TOTAL $ 16,237,107 $ 2,230,120 $ 5,236,012 $ 6,571,655 $ 2,199,320 As of December 31,2010,the Firefighters' Pension Fund had the following investments and maturities in debt securities. Investment Maturities(in Years) Fair Less More Value Than 1 1-5 6-10 Than 10 U.S.agencies $ 7,735,227 $ 202,006 $ 2,108,737 $ 4,922,140 $ 502,344 U.S.Treasuries 1,015,161 - 642,033 373,128 - State and local obligations 2,407,533 - 564,094 1,121,921 721,518 Money market mutual funds 132,431 132,431 - - - Illinois Funds 139,785 139,785 - - - TOTAL $ 11,430,137 $ 474,222 $ 3,314,864 $ 6,417,189 $ 1,223,862 GASB 40 - Operating Funds 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. Illinois Funds and IMET are both "AAA"rated funds. 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. - 26 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 2. DEPOSITS AND INVESTMENTS (Continued) b. Investments(Continued) GASB 40 - Operating Funds (Continued) At December 31, 2010, the Village had greater than five percent of its overall portfolio invested in Illinois Funds (74.75%) and IMET (25.25%). The investment policy does not include any limitations as to how much the Village many hold in Illinois Funds or IMET. 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 strives to limit its exposure to credit risk, which is the risk _ that the issuer of a debt security will not pay the par value upon maturity. This is controlled by primarily investing in securities issued by the United States Government, securities issued by agencies of the United States Government that carry ._ an implicit guarantee, or high quality state or local obligations. United States Government and agency securities are considered to be AAA rated and are generally considered free of credit risk due to the stability of the United States Government. Investments in state and local obligations are considered to be AAA rated. At December 31, 2010, the Police Pension Fund had greater than 5% of its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau (6.87%), Federal Home Bank(32.53%) and Federal National Mortgage Association(13.18°/x). 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 Police Pension Fund's investment policy defines the strategy in which the Police Pension Board follows for the equity investments. The Police Pension Fund diversifies its equity holdings by owning several different mutual funds allocated among the following asset classes subject to the percentage limitations indicated: - 27 - �- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) b. Investments(Continued) GASB 40 - Police Pension Fund (Continued) n Normal Range of Allocation Allocation U.S. Large Cap Stocks (may include some Mid-Cap Stocks) 55% +/- 25% U.S. Small-Cap Stocks (may r include some Mid-Cap Stocks) 25% +/- 20% Foreign securities 10% +/- 10% Alternative investments -.. (including real estate) 10% +/- 10% The Police Pension Fund limits its exposure to custodial risk by utilizing the Trust -- Department of 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. 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 agency securities are rated "AAA." For investments in state and local obligations, 100% are considered to be "AAA"rated investments. At December 31, 2010, the Firefighters' Pension Fund had greater than five percent T, of its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau (29.14%) and Federal Home Loan Bank (33.69%). The investment policy does not include any limitations on how much U.S. Treasury or agency securities can be held in the portfolio. - 28 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 2. DEPOSITS AND INVESTMENTS (Continued) b. Investments(Continued) GASB 40 - Firefighters' Pension Fund(Continued) The Firefighters' Pension Fund invests up to 45% of its investments in equity mutual funds. The Firefighters' Pension Fund's investment policy defines the strategy in which the Firefighters' Pension Board follows for the equity investments. The Firefighters' 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% +/- 10% Foreign stocks 10% +/- 5% Alternative investments (such as real estate mutual funds) 5% +/- 5% The Firefighters' Pension Fund limits its exposure to custodial risk by utilizing the Trust Department of MB Financial Bank to act as custodian for its fixed income securities. For an investment, custodial risk is the risk that, in the event of the failure of the counterparty, the Firefighters' Pension Board will not be able to recover the value of its investments that are in the possession of an outside party. 3. PROPERTY TAXES Property taxes for 2010 attach as an enforceable lien on January 1, 2010, 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, 2010 and August 1, 2010 and are payable in two installments, on or about June 1, 2010 and September 1, 2010. 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, as well as incremental property taxes from the Butterfield/Myers Road Redevelopment Project Area (TIF). - 29 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. RECEIVABLES The following receivables are included in other receivables on the statement of net assets as of December 31, 2010: GOVERNMENTAL ACTIVITIES State income tax $ 282,782 Hotel/motel tax 66,150 Reinsurance 29,582 Other miscellaneous 43,711 TOTAL GOVERNMENTAL ACTIVITIES $ 422,225 BUSINESS-TYPE ACTIVITIES Members charges $ 25,953 Special events . 32,693 Other miscellaneous 4,306 TOTAL BUSINESS-TYPE ACTIVITIES $ 62,952 5. CAPITAL ASSETS Capital asset activity for the year ended December 31,2010 was as follows: Beginning Ending Balance Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated Land $ 616,829 $ - $ - $ 616,829 Land right of way 31,687,305 - - 31,687,305 Construction in progress 45,437 362,301 45,437 362,301 Total capital assets not being depreciated 32,349,571 362,301 45,437 32,666,435 Capital assets being depreciated Buildings,building and land improvements 18,811,186 125,669 8,523 18,928,332 _ Computer equipment 1,225,299 98,425 - 1,323,724 Other equipment 1,866,963 7,900 - 1,874,863 Vehicles 77,020 - 23,900 53,120 Infrastructure 33,435,949 8,916 - 33,444,865 Internal service fund vehicles 5,547,149 155,380 63,993 5,638,536 Total capital assets being depreciated 60,963,566 396,290 96,416 61,263,440 Less accumulated depreciation for Buildings,building and land improvements 5,199,665 467,593 8,523 5,658,735 Computer equipment 935,957 105,490 - 1,041,447 Other equipment 1,414,297 95,289 - 1,509,586 Vehicles 81,085 4,423 38,285 47,223 Infrastructure 19,658,236 752,464 - 20,410,700 Internal service fund vehicles 3,320,181 338,443 63,993 3,594,631 Total accumulated depreciation 30,609,421 1,763,702 110,801 32,262,322 Total capital assets being depreciated,net 30,354,145 (1,367,412) (14,385) 29,001,118 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS,NET $62,703,716 $ (1,005,111) $ 31,052 $61,667,553 - 30 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 5. CAPITAL ASSETS (Continued) Beginning Ending Balance Increases Decreases Balance BUSINESS-TYPE ACTIVITIES _ Capital assets not being depreciated Land $ 8,292,266 $ - $ - $ 8,292,266 Construction in progress 183,815 301,475 133,355 351,935 Total capital assets not being depreciated 8,476,081 301,475 133,355 8,644,201 Capital assets being depreciated Land improvements 2,891,532 16,004 - 2,907,536 Building and building improvements 5,742,895 - - 5,742,895 Infrastructure 18,224,964 2,216,735 202,570 20,239,129 Vehicles,machinery and equipment 5,023,085 51,754 - 5,074,839 Total capital assets being depreciated 31,882,476 2,284,493 202,570 33,964,399 Less accumulated depreciation for Land improvements 2,083,161 64,248 - 2,147,409 Building and building improvements 2,336,280 116,611 - 2,452,891 Infrastructure 6,738,811 281,668 113,083 6,907,396 Vehicles,machinery and equipment 3,652,444 230,715 - 3,883,159 Total accumulated depreciation 14,810,696 693,242 113,083 15,390,855 Total capital assets being depreciated,net 17,071,780 1,591,251 89,487 18,573,544 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS,NET $25,547,861 $ 1,892,726 $ 222,842 $27,217,745 Depreciation expense was charged to functions of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 475,263 Public safety 312,439 Public works 840,824 Culture and recreation 135,176 -- TOTAL DEPRECIATION EXPENSE-GOVERNMENTAL ACTIVITIES $ 1,763,702 - 31 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. CAPITAL ASSETS (Continued) Construction Contracts The Village has entered into contracts for the construction or renovation of various facilities as of December 31,2010 as follows: Project Expended Unspent Budget To Date Balance West 22nd Street Improvements $ 8,352,791 $ 3,340,000 $ 5,012,791 2009 Paving Design 69,272 48,913 20,359 _- 2011 Paving Design 64,689 26,602 38,087 2010 Water Main Construction Inspection 164,405 162,106 2,299 2010 Water Main Replacements 1,910,941 1,749,317 161,624 Timber Trails Water Main Replacement 137,720 109,043 28,677 2010 Pump Station Improvements 598,700 - 598,700 TOTAL $ 11,298,518 $ 5,435,981 $ 5,862,537 6. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; illnesses of employees; and natural disasters. The Village participates in the Intergovernmental Risk Management Agency (IRNA) which is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation's Statute to pool its risk management needs. The Village pays annual premiums to IRMA for its workers' compensation, general liability and property coverage. The Village assumes the first $25,000 of each occurrence, with IRMA having a mix of self- insurance and commercial insurance at various amounts above that level. The Village appoints one delegate, along with an alternate delegate, to represent the Village on the -- Board of Directors. The Village does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors. The Village, along with IRMA's other members, has a contractual obligation to fund any deficit of IRMA attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits. No such contributions have occurred during the past three years. - 32 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 6. RISK MANAGEMENT (Continued) In addition, the Village provides medical and dental coverage to village employees, their dependents, retirees and employees of the Oak Brook Park District through a limited self- insurance program. Through June 30, 2010, the Village was self-insured for the first $75,000 per individual for medical claims up to a maximum limit of$2,703,918 for all _ individuals. As of July 1, 2010, the Village was self-insured for the first $85,000 per individual for medical claims up to a maximum limit of$2,559,690 for all individuals. Commercial insurance is carried for amounts in excess of the self-insured amounts. -' Settlements did not exceed insurance coverage in any of the last three years. The Village is entirely self-insured for dental claims up to the annual benefit limit of$1,000 per individual. _ The Village's self-insurance activities are reported in the Self-Insurance Fund, an Internal Service Fund. Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and other funds, retirees, the Oak Brook Park District and COBRA participants based upon equivalent premium estimates. Liabilities are reported when it is probable that a loss has _ 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 $118,930. _ A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2010 2009 — CLAIMS PAYABLE, BEGINNING OF YEAR $ 123,600 $ 220,000 Claims incurred and changes in estimate 1,991,445 1,853,669 Claims paid (1,996,115) (1,950,069) CLAIMS PAYABLE, END OF YEAR $ 118,930 $ 123,600 - 33 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT Installment Contract Payable '! The Village has issued installment contracts payable to provide funds for the acquisition of capital assets. The installment contracts payable currently outstanding are as follows: Fund Debt Balance, Balance, Current Issue Retired by January 1 Issuances Retirements December 31 Portion General Fund Refunding Certificates,Series 2003 dated June 1,2003,interest at 1.50%to 3.20%,due in annual installments ranging from$65,000 to$125,000 through December 1,2012, interest payable June 1 and December 1 of each year,secured Sports by sales and use taxes. Core $ 325,000 $ - $ 100,000 $ 225,000 $ 100,000 General Fund Refunding Certificates,Series 2009 dated July 15,2009,interest at 2.00%to 3.50%,due in annual installments ranging from$205,000 to $280,000 through December 1, 2017,interest payable June 1 and December 1 of each year,secured by sales and use taxes. General 2,075,000 - 245,000 1,830,000 245,000 TOTAL $2,400,000 $ - $ 345,000 $ 2,055,000 $ 345,000 Notes Payable The Village has issued notes payable related to developer and intergovernmental agreements. The notes payable and installment contracts payable currently outstanding are as follows: _ Balance, Fund Debt January 1, Balance, Current Issue Retired by Restated Issuances Retirements December 31 Portion Note payable to the Illinois Tollway for the Intergovernmental Agreement dated July 21,2009. Four Infrastructure $ 6,007,443 $ - $ 1,501,163 $ 4,506,280 $ 1,501,163 annual installments of $1,670,000 payable June 15 and a lump sum payment by Waterworks June 15,2013. System 675,348 - 168,837 506,511 168,837 - 34 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 7. LONG-TERM DEBT (Continued) Notes Payable (Continued) — Balance, Fund Debt January 1, Balance, Current Issue Retired by Restated Issuances Retirements December 31 Portion $4,250,000 TIF note payable to developers dated June 6, -- 2005 for certain improvements in the TIF area,interest at 8.00%due in semi-annual installments — contingent upon sufficient pledged incremental real estate tax and sales tax. Promenade Principal is due by February TIF $ 4,250,000 $ - $ 23,100 $ 4,226,900 $ - 1,2024. TOTAL $ 10,932,791 $ - $1,693,100 $ 9,239,691 $ 1,670,000 Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Installment Contracts Installment Contracts Notes Payable from Fiscal Year Payable from Governmental Payable from Business-Type Governmental Ending Activities Activities Activities December 31, Principal Interest Principal Interest Principal Interest 2011 $ 245,000 $ 49,475 $ 100,000 $ 7,100 $ 1,501,163 $ - 2012 250,000 44,575 125,000 4,000 1,501,163 - 2013 255,000 39,575 - - 1,503,954 - 2014 260,000 33,838 - - - - 2015 265,000 26,687 - - - - 2016 275,000 18,738 - - - - 2017 280,000 9,800 - - - 2018 - - - - - - 2019 - - - - - - 2020 - - - - - - TOTAL $ 1,830,000 $ 222,688 $ 225,000 $ 11,100 $ 4,506,280 $ - Fiscal Year Notes Payable from Ending Business-Type Activities December 31, Principal Interest 2011 $ 168,837 $ - 2012 168,837 - 2013 168,837 - -- TOTAL $ 506,511 $ - 35 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) Debt Service Requirements to Maturity (Continued) The repayment of the TIF note payable is based on incremental real estate tax and sales tax received. As such, there is no debt service to maturity schedule. Change in Long-Term Liabilities During the fiscal year, the following changes occurred in long-term liabilities reported in the governmental activities: Balance, January 1, Balance, Current Restated Additions Reductions December 31 Portion Installment contracts payable $ 2,075,000 $ - $ 245,000 $ 1,830,000 $ 245,000 Notes payable 10,257,443 - 1,524,263 8,733,180 1,501,163 Net other postemployment benefit obligation - 24,858 - 24,858 - Compensated absences* 929,036 911,641 865,791 974,886 859,154 Compensated absences- Intemal Service Fund 9,322 11,318 9,322 11,318 11,318 TOTAL GOVERNMENTAL ACTIVITIES $ 13,270,801 $ 947,817 $ 2,644,376 $ 11,574,242 $ 2,616,635 - *The compensated absences for governmental activities typically have been liquidated by the General Fund and the Infrastructure Fund. During the fiscal year, the following changes occurred in long-term liabilities reported in the business-type activities: Balance, Balance, Current January 1 Additions Reductions December 31 Portion Installment contracts payable $ 325,000 $ - $ 100,000 $ 225,000 $ 100,000 Notes payable 675,348 - 168,837 506,511 168,837 Compensated absences 82,625 85,734 82,625 85,734 85,734 TOTAL BUSINESS- TYPE ACTIVITIES $ 1,082,973 $ 85,734 $ 351,462 $ 817,245 $ 354,571 - 36 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 7. LONG-TERM DEBT (Continued) Legal Debt Margin 2009 assessed valuation(latest information available) $ 1,739,281,404 Legal debt limit- 8.625%of assessed valuation $ 150,013,021 Amount of debt applicable to debt limit 2,055,000 LEGAL DEBT MARGIN $ 147,958,021 8. INTERFUND ACCOUNTS Advance from/to other funds _ Receivable Fund Payable Fund Amount General Sports Core $ 1,917,000 The purpose of this amount advanced to the Sports Core Fund from the General Fund was to finance various ongoing capital projects and operating needs. 9. COMMITMENTS a. DuPage Water Commission The Village is a customer of the DuPage Water Commission(the Commission) and has executed a Water Supply Contract (the Contract)with the Commission for a term ending in 2024. The Contract provides that the government pay its proportionate share of"fixed costs" (debt service and capital costs)to the Commission, such obligation being unconditional and irrevocable whether or not water is ever delivered. These costs are expensed along with the other operation charges from the Commission. Fiscal Year Ending — December 31, Amount 2011 $ 284,816 2012 284,816 2013 284,816 2014 284,816 2015 284,816 Thereafter 2,563,344 TOTAL $ 3,897,424 - 37 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. COMMITMENTS (Continued) a. DuPage Water Commission (Continued) '— These amounts have been calculated using the Village's current allocation percentage. In future years, this allocation percentage will be subject to change. Estimates for the remaining years of the Contract are not currently available. However, the Village does not expect the minimum amounts for the remaining years of the Contract to materially vary from the amounts presented above. b. Illinois Department of Transportation The Village has entered into an agreement with the Illinois Department of Transportation (IDOT), dated June 8, 2010, which provides for improvements to 22nd Street. Under the agreement, the Village has committed to payments to IDOT of $1,000,000 in 2011 and the balance of the project in 2012. The Village made a payment of$1,000,000 in the current year based on expenditures of$612,001, resulting in a prepaid of$387,999. The total remaining commitment is estimated to be $1,448,005. 10. CONTINGENT LIABILITIES Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is — not presently determinable, in the opinion of the Village's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. In addition, the Village may become responsible for certain legal costs associated with other lawsuits. It is possible, but not probable, that the Village will become liable for these costs. No liability, therefore, has been recorded on the financial statements for this litigation. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. DuPage Water Commission The Village's agreement with the DuPage Water Commission provides that each member is liable for its proportionate share of any cost arising from defaults in payment obligations by other members. - 38 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS The Village contributes to four defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer public employee retirement system; the Sheriff's Law Enforcement Personnel (also administered by IMRF), an agent multiple- employee retirement system; the Police Pension Plan,which is a single-employer pension plan; and the Firefighters' Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels, employee contributions and employer contributions for all four plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General _ Assembly. The Police and Firefighters' Pension Plans each issue separate financial statements. These reports can be obtained from the Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, Illinois 60523-2255. IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole,but not ` for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. a. Plan Descriptions Illinois Municipal Retirement Fund All employees (other than those covered by the Police or Firefighters' Pension 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 1 2/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2.00% for each year thereafter. IMRF also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. Participating members are required to contribute 4.50% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The employer contribution — for the year ended December 31, 2010 was 12.31% of covered payroll. Sheriffs Law Enforcement Personnel Sheriff's Law Enforcement Personnel (SLEP)having accumulated at least 20 years of SLEP service and terminating IMRF participation or after January 1, 1988, may elect to retire at or after age 50 with no early retirement discount penalty. SLEP members ` meeting these two qualifications are entitled to an annual retirement benefit payable monthly for life, in an amount equal to 2 1/2% of their final rate of earnings for each year of credited service up to 20 years, 2% of their final earnings rate for the next 10 years of credited service and I% for each year thereafter. For SLEP members retiring with less than 20 years of SLEP service, the regular IMRF pension formula applies. SLEP also provides death and disability benefits. These benefit provisions and all -- other requirements are established by Illinois Compiled Statute. Participating members are required to contribute 6.5% of their annual salary to SLEP. The Village is required to contribute the remaining amounts necessary to fund SLEP as specified by statute. The employer contribution for the year ended December 31, 2010 was 14.35% of covered payroll. - 39 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan Police sworn personnel are covered by the Police Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2010, the Police Pension Plan membership consisted of. Retirees and beneficiaries currently receiving benefits 32 Terminated employees entitled to benefits but not yet receiving them I Current employees " Vested 34 Nonvested 7 TOTAL 74 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 1/12 of 3% for each full month that the retiree has been receiving a pension. Employees are required by ILCS to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The costs of administering the Police Pension 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, 2010, the Village's contribution was 28.36% of covered payroll. The State of Illinois passed Public Act 096-1495 on December 30, 2010. As a result, effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service costs for the Police Pension Plan. - 40 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 11. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) _ Firefighters' Pension Plan Fire sworn personnel are covered by the Firefighters' Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2010, the Firefighters' Pension Plan membership consisted of- Retirees £Retirees and beneficiaries currently receiving benefits 48 Terminated employees entitled to benefits but not yet receiving them - Current employees Vested 20 Nonvested 12 TOTAL 80 The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the monthly salary attached to the rank held in the fire service at the date of retirement. The monthly pension shall be increased by 1/12 of 2.50% of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75.00% of such monthly salary. Employees with at least ten _ years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, ` following the first anniversary date of retirement and upon reaching at least the age of 55,by 3% of the original pension and 3% annually thereafter. If not 55, no increase is granted to the retiree until reaching age 55, at which time the increase is 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 Firefighters' — Pension Plan are financed through investment earnings. The Village is required to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until the year 2033 to fully fund the past services costs for the Firefighters' Pension Plan. For the year ended December 31, 2010, the Village's contribution was 39.22%of covered payroll. The State of Illinois passed Public Act 096-1495 on December 30, 2010. As a result, effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service costs for the Firefighters' Pension Plan. - 41 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) b. Significant Investments The following are investments (other than U.S. Government guaranteed obligations) in any one organization that represent 5.00% or more of plan net assets for either the Police or the Firefighters' Pension Plans. Information for IMRF and SLEP is not available. Plan Organization Amount Police Pension Leuthold Core Investment $ 1,565,197 Police Pension Ivy Asset Strategy 1,492,572 $ 3,057,769 Plan Organization Amount Firefighters' Pension American Growth Fund $ 1,206,672 Firefighters' Pension Davis NY Venture Fund 1,178,356 Firefighters' Pension Victory Established 1,180,109 Firefighters' Pension Blockrock Equity 1,201,065 $ 4,766,202 C. 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, December 31, December 31, 2008 2009 2009 Actuarial cost method Entry-age Entry-age Entry-age Normal Normal Normal - 42 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 11. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs (Continued) -� Illinois Municipal Retirement and Sheriff s Law Enforcement Police Firefighters' Personnel Pension Pension Asset valuation method 5 Year Smoothed Market Market Market Amortization method Level Percentage Level Level of Payroll Percentage of Percentage of Payroll Payroll Amortization period 30 Years, 24 Years, 24 Years, Open Closed Closed Significant actuarial assumptions a) Rate of return on 7.50% 7.00% 7.00% present and future assets Compounded Compounded Compounded _ Annually Annually Annually b) Projected salary increase- 4.00% 4.00% 4.00% _ attributable to inflation Compounded Compounded Compounded Annually Annually Annually c) Additional projected .40 to 10.00% Not Available Not Available salary increases- seniority/merit - 43 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs (Continued) Employer annual required contributions (ARC), actual contributions and the net pension obligation (NPO) (asset) are as follows. The NPO (asset) is the cumulative _ difference between the annual pension costs and the contributions actually made. Sheriff's Law Illinois Enforce- Calendar Municipal ment Police Firefighters' Year Retirement Personnel Pension Pension Annual pension cost(APC) 2008 $ 726,369 $ 15,076 $ 617,619 $ 671,683 2009 674,506 14,848 958,641 839,550 2010 649,120 18,125 944,808 933,925 Actual contribution 2008 $ 726,369 $ 15,076 $ 617,619 $ 671,683 _ 2009 674,506 14,848 958,641 839,550 2010 649,120 18,125 944,808 933,925 _ Percentage of APC 2008 100.00% 100.00% 100.00% 100.00% contributed 2009 100.00% 100.00% 100.00% 100.00% 2010 100.00% 100.00% 100.00% 100.00% NPO (Asset) 2008 $ - $ - $ - $ - 2009 - - - - 2010 - - - - - 44 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 11. DEFINED BENEFIT PENSION PLANS (Continued) d. Summary Financial Information The following is summary financial information for the Police and Firefighters' Pension Plans. _ Statement of Plan Net Assets Pension Trust Police Firefighters' Pension Pension Total ASSETS Cash $ 172,091 $ 163,047 $ 335,138 Investments Illinois Funds 27,937 139,785 167,722 Money market mutual funds 1,081,090 132,431 1,213,521 Certificates of deposits - 103,279 103,279 U.S. Treasury securities 3,273,293 1,015,161 4,288,454 U.S. agency securities 9,022,254 7,735,227 16,757,481 _ State and local obligations 2,832,533 2,407,533 5,240,066 Mutual funds 10,542,895 10,475,968 21,018,863 Equities 1,353,464 - 1,353,464 Accrued interest receivable 132,252 107,344 239,596 Total assets 28,437,809 22,279,775 50,717,584 LIABILITIES Accounts payable 16,452 3,977 20,429 Total liabilities 16,452 3,977 20,429 NET ASSETS HELD IN TRUST _ FOR PENSION PLAN BENEFITS $ 28,421,357 $ 22,275,798 $ 50,697,155 - 45 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) d. Summary Financial Information (Continued) Statement of Changes in Plan Net Assets _ Pension Trust Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 944,808 $ 933,925 $ 1,878,733 Employee 330,556 286,332 616,888 Total contributions 1,275,364 1,220,257 2,495,621 Investment income Net appreciation in fair value of investments 1,845,946 1,509,158 3,355,104 Interest 701,444 674,151 1,375,595 Total investment income 2,547,390 2,183,309 4,730,699 Less investment expense (76,195) (28,661) (104,856) Net investment income 2,471,195 2,154,648 4,625,843 Total additions 3,746,559 3,374,905 7,121,464 DEDUCTIONS Benefits and refunds 1,682,802 1,845,870 3,528,672 Administrative 34,037 32,498 66,535 Total deductions 1,716,839 1,878,368 3,595,207 NET INCREASE 2,029,720 1,496,537 3,526,257 _ NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 26,391,637 20,779,261 47,170,898 December 31 $ 28,421,357 $ 22,275,798 $ 50,697,155 - 46 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) e. Funded Status The funded status of the plans as of December 31, 2010 is as follows. The actuarial assumptions used to determine the funded status of the plans are the same actuarial assumptions used to determine the employer annual pension costs of the plans as disclosed in Note 11-c: Illinois Sheriff s Law Municipal Enforcement Firefighters' Police — Retirement Personnel Pension Pension Actuarial accrued liability(AAL) $ 15,208,443 $ 282,824 $ 36,057,657 $ 38,718,877 Actuarial value of plan assets 9,534,465 234,928 22,275,798 28,421,357 Unfunded actuarial accrued liability (UAAL) 5,673,978 47,896 13,781,859 10,297,520 Funded ratio(actuarial value of plan assets/AAL) 62.69% 83.07% 61.78% 73.40% Covered payroll(active plan members) $ 5,273,109 $ 126,304 $ 2,668,624 $ 3,288,064 UAAL as a percentage of covered payroll 107.60% 37.92% 516.44% 313.18% See the schedules of funding progress in the required supplementary information immediately following the notes to financial statements for additional information related to the funded status of the plans. 12. OTHER POSTEMPLOYMENT BENEFITS Plan Description In addition to providing the pension benefits described, the Village provides postemployment health care (OPEB) benefits for retirees and disabled employees through a single-employer defined benefit plan (the Plan). The benefits,benefit levels, employee contributions and any employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate report. The activity of the Plan is reported in the Village's Self-Insurance Fund. _ - 47 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) Benefits Provided The Village provides postemployment health care benefits to its retirees and certain disabled employees. To be eligible for benefits, an employee must qualify for retirement under one _ of the Village's retirement plans or meet COBRA requirements. For certain disabled employees who qualify for health insurance benefits under the Public Safety Employee Benefits Act (PSEBA), the Village is required to pay 100% of the cost of basic health insurance for the employee and their dependents for their lifetime. As of December 31, 2010, the Village has two disabled retirees receiving benefits under this statute. All health care benefits are provided through the Village's self-insured health plan. The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental, nervous and substance abuse care; vision care; dental care; and prescriptions. Eligibility in village sponsored health care plans is discontinued upon eligibility for federally sponsored health care benefits. Membership At December 31, 2009 (the latest information available), membership consisted of: Retirees and beneficiaries currently receiving benefits 23 Terminated employees entitled to benefits but not yet receiving them - Current employees Vested 122 Nonvested 72 TOTAL 217 Participating employers 1 Funding Policy All retirees contribute 100% of the actuarially determined premium to the Plan to cover the cost of providing the benefits to the retirees via the self-insured plan (pay as you go), which results in an implicit subsidy to the Village as defined by the GASB Statement No. 45. The Village pays 100% of the actuarially determined premium for certain disabled employees. Since the Village is self-insured, these amounts fluctuate on an annual basis. For the fiscal year ended December 31, 2010, retirees contributed $495,482 and the Village contributed $137,854. The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the Plan until retirement. - 48 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) Annual OPEB Costs and Net OPEB Obligation The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net OPEB obligation was as follows: Fiscal Annual Percentage of Year OPEB Employer Annual OPEB Net OPEB '— Ended Cost Contributions Cost Contributed Obligation December 31, 2008 $ 103,689 $ 88,962 85.8% $ 14,727 -� December 31, 2009 101,585 137,854 135.7% (21,542) December 31, 2010 184,254 137,854 74.8% 24,858 The net OPEB obligation (NOPEBO) as of December 31, 2010 was calculated as follows: Annual required contribution $ 186,027 Interest on net OPEB obligation (1,077) Adjustment to annual required contribution (696) Annual OPEB cost 184,254 Contributions made 137,854 Increase in net OPEB obligation 46,400 Net OPEB obligation, beginning of year (21,542) NET OPEB OBLIGATION, END OF YEAR $ 24,858 Funded Status and Funding Progress The funded status of the Plan as of December 31, 2009 was as follows: Actuarial accrued liability(AAL) $ 3,108,091 Actuarial value of plan assets - — Unfunded actuarial accrued liability(URAL) 3,108,091 Funded ratio (actuarial value of plan assets/AAL) -% Covered payroll (active plan members) $ 13,426,525 -' UAAL as a percentage of covered payroll 23.15% - 49 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. OTHER POSTEMPLOYMENT BENEFITS (Continued) Funded Status and Funding Progress (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples _ include assumptions about future employment,mortality and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress,presented as required supplementary information following the notes to financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the Plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the December 31, 2009 actuarial valuation, the entry-age actuarial cost method was used. — The actuarial assumptions included a 5.00% investment rate of return (net of administrative expenses) and an initial annual healthcare cost trend rate of 8.00% and an ultimate healthcare cost trend rate of 6.00%. These rates include a 3.00% inflation assumption. The _ actuarial value of assets was not determined as the Village has not advance funded its obligation. The Plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at December 31, 2009 was 30 years. 13. PRIOR PERIOD ADJUSTMENT The net assets of governmental activities as of January 1, 2010 has been restated ($4,458,723) with a reduction in net assets to record the outstanding principal and accrued interest on the TIF note payable. - 50 - REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF OAK BROOK, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2010 Budgets Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for the General, Special Revenue and Capital Projects Funds on the modified accrual basis. Enterprise, Internal Service and Pension Trust Funds are on the accrual — basis and a current financial resources measurement focus except the Village does not budget depreciation but does budget capital outlay. 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 Budget Officer 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 resident comments. 4. Subsequently, the budget is adopted by the Village Board. — 5. Annual budgets are adopted for all funds on a basis consistent with generally accepted _ accounting principles. 6. Formal budgetary integration is employed as a management control device during the year _ for all funds of the Village. 7. Appropriations lapse at year end. — 8. The Village Manager and Budget Officer are authorized to transfer budgeted amounts between line items within any program; however, any revisions that alter the total — expenditures of any program or fund must be approved by the Village Board. The level of legal control is the individual program budget in total. 9. Budgeted amounts are as originally adopted with the exceptions of approved transfers which were not material in relation to the budgets taken as a whole. After Village Board transfers, no program had an excess of expenditures/expenses, exclusive of depreciation and — amortization over budget for the fiscal year. - 52 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND December 31,2010 (4) Unfunded (2) (Overfunded) UAAL Actuarial Actuarial (OAAL) -- Accrued Accrued as a Actuarial (1) Liability (3) Liability Percentage Valuation Actuarial (AAL) Funded (UAAL) (5) of Covered Date Value of Entry-Age Ratio (OAAL) Covered Payroll December 31, Assets Normal (1)/(2) (2)-(1) Payroll (4)/(5) 2005 $ 11,795,220 $ 13,314,605 88.59% $ 1,519,385 $ 5,829,743 26.06% 2006 12,350,563 14,160,884 87.22% 1,810,321 6,036,741 29.99% 2007 13,391,125 15,455,482 86.64% 2,064,357 6,395,211 32.28% 2008 11,511,641 16,564,067 69.50% 5,052,426 7,142,269 70.74% 2009 9,609,171 14,603,710 65.80% 4,994,539 6,567,736 76.05% 2010 9,534,465 15,208,443 62.69% 5,673,978 5,273,109 107.60% (See independent auditor's report.) -53 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FUNDING PROGRESS SHERIFF'S LAW ENFORCEMENT PERSONNEL December 31,2010 — (4) Unfunded (2) (Overfunded) UAAL _ Actuarial Actuarial (ORAL) Accrued Accrued as a Actuarial (1) Liability (3) Liability Percentage _ Valuation Actuarial (AAL) Funded (UAAL) (5) of Covered Date Value of Entry-Age Ratio (OAAL) Covered Payroll December 31, Assets Normal (1)/(2) (2)-(1) Payroll (4)/(5) 2005 $ 17,968 $ (17,180) (104.59%) $ (35,148) $ 66,502 (52.85%) 2006 40,982 4,052 1011.40% (36,930) 115,531 (31.97%) — 2007 64,632 28,962 223.16% (35,670) 120,808 (29.53%) 2008 187,175 218,844 85.53% 31,669 129,968 24.37% 2009 202,440 248,486 81.47% 46,046 126,795 36.32% 2010 234,928 282,824 83.07% 47,896 126,304 37.92% (See independent auditor's report.) - 54- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND December 31,2010 _ (2) UAAL Actuarial (4) as a Actuarial (1) Accrued (3) Unfunded' Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets Entry-Age (1)/(2) (2)-(l) Payroll (4)/(5) 2005 $ 24,752,561 $ 28,683,431 86.30% $ 3,930,870 $ 2,984,609 131.70% 2006 26,414,388 30,625,818 86.25% 4,211,430 3,162,857 133.15% 2007 27,827,838 32,129,429 86.61% 4,301,591 3,180,282 135.26% 2008 24,349,249 35,266,292 69.04% 10,917,043 3,314,574 329.36% 2009 26,391,636 36,801,319 71.71% 10,409,683 3,433,002 303.22% 2010 28,421,357 38,718,877 73.40% 10,297,520 3,288,064 313.18% (See independent auditor's report.) -55 - VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS'PENSION FUND December 31,2010 (4) UAAL (2) Unfunded (OAAL) Actuarial (Overfunded) as a _ Actuarial (1) Accrued (3) AAL Percentage Valuation Actuarial Liability Funded (UAAL) (5) of Covered Date Value of (AAL) Ratio (OAAL) Covered Payroll December 31, Assets Entry-Age (1)/(2) (2)-(1) Payroll (4)/(5) 2005 $ 20,053,194 $ 26,016,602 77.08% $ 5,963,408 $ 2,439,899 244.41% 2006 21,567,521 27,373,120 78.79% 5,805,599 2,563,057 226.51% 2007 22,473,402 28,968,184 77.58% 6,494,782 2,582,069 251.53% 2008 19,118,652 31,239,022 61.20% 12,120,370 2,804,818 432.13% 2009 20,779,262 32,813,804 63.32% 12,034,542 2,573,691 467.60% 2010 22,275,798 36,057,657 61.78% 13,781,859 2,668,624 516.44% 'J i (See independent auditor's report.) -56- VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF FUNDING PROGRESS OTHER POSTEMPLOYMENT BENEFIT PLAN December 31,2010 (4) UAAL (2) Unfunded (OAAL) Actuarial (Overfunded) as a Actuarial (1) Accrued (3) AAL Percentage —, Valuation Actuarial Liability Funded (UAAL) (5) of Covered Date Value of (AAL) Ratio (OAAL) Covered Payroll December 31, Assets Entry-Age (1)/(2) (2)-(1) Payroll (4)/(5) 2008 $ - $ 1,746,352 0.00% $ 1,746,352 N/A N/A 2009 - 3,108,091 0.00% 3,108,091 N/A N/A 2010 N/A N/A N/A N/A N/A N/A N/A-Information not available. The Village implemented GASB Statement No.45 for the fiscal year ended December 31,2008. Information for prior years is not available. (See independent auditor's report.) -57- VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2010 Annual _ Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 2005 $ 557,323 $ 557,323 100.00% 2006 577,112 577,112 100.00% 2007 638,242 638,242 100.00% 2008 726,369 726,369 100.00% _ 2009 674,506 674,506 100.00% 2010 649,120 649,120 100.00% (See independent auditor's report.) - 58 - VILLAGE OF OAK BROOK, ILLINOIS _ SCHEDULE OF EMPLOYER CONTRIBUTIONS SHERIFF'S LAW ENFORCEMENT PERSONNEL December 31, 2010 Annual Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 2005 $ 8,958 $ 8,958 100.00% _ 2006 15,562 15,562 100.00% 2007 14,207 14,207 100.00% 2008 15,076 15,076 100.00% 2009 14,848 14,848 100.00% 2010 18,125 18,125 100.00% (See independent auditor's report.) - 59 - VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND December 31, 2010 Annual Fiscal Required r Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 2005 $ 497,650 $ 497,650 100.00% 2006 549,750 549,750 100.00% 2007 564,283 564,283 100.00% 2008 617,619 617,619 100.00% — 2009 958,641 958,641 100.00% 2010 944,808 944,808 100.00% (See independent auditor's report.) _. - 60 - VILLAGE OF OAK BROOK, ILLINOIS _ SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS'PENSION FUND December 31, 2010 Annual Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 2005 $ 490,244 $ 490,244 100.00% 2006 584,388 584,388 100.00% 2007 564,945 564,945 100.00% 2008 671,683 671,683 100.00% 2009 839,550 839,550 100.00% 2010 933,925 933,925 100.00% (See independent auditor's report.) - 61 - VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFIT PLAN December 31,2010 Annual Net Other Fiscal Required Postemployment Year Employer Contribution Percentage Benefit December 31, Contributions (ARC) Contributed Obligation(Asset) 2008 $ 88,965 $ 103,689 85.80% $ 14,727 2009 137,854 100,374 137.34% (21,542) 2010 137,854 186,027 74.10% 24,858 The Village implemented GASB Statement No. 45 for the fiscal year ended December 31,2008. Information for prior years is not available. (See independent auditor's report.) - -62- 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 EXPENDITURES-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual GENERAL GOVERNMENT Legislative and general management Board of trustees Personnel $ 66,355 $ 66,355 $ 65,373 $ (982) $ 63,588 Materials and supplies 2,050 2,050 1,313 (737) 1,025 Operation and contractual 142,000 110,000 111,392 1,392 108,943 Total board of trustees 210,405 178,405 178,078 (327) 173,556 Village clerk Personnel 106,795 103,805 89,565 (14,240) 245,894 Materials and supplies 805 805 393 (412) 1,908 Operation and contractual 18,200 18,200 11,316 (6,884) 11,448 Total Village clerk 125,800 122,810 101,274 (21,536) 259,250 Legal Personnel 18,380 18,380 17,772 (608) 18,242 Materials and supplies - - 153 153 - -y Operation and contractual 461,060 375,625 362,502 (13,123) 371,696 Total legal 479,440 394,005 380,427 (13,578) 389,938 _ General management Personnel 262,605 262,605 270,538 7,933 308,164 Materials and supplies 1,450 1,450 892 (558) 919 Operation and contractual 85,700 63,700 55,561 (8,139) 35,636 Total general management 349,755 327,755 326,991 (764) 344,719 Human resources -- Personnel 278,235 184,315 146,507 (37,808) 212,371 Materials and supplies 2,355 2,355 2,281 (74) 2,268 Operation and contractual 242,600 222,160 101,660 (120,500) 244,217 Total human resources 523,190 408,830 250,448 (158,382) 458,856 Risk management Personnel 59,190 82,040 90,616 8,576 53,744 Operation and contractual 928,295 905,445 736,675 (168,770) 822,589 Total risk management 987,485 987,485 827,291 (160,194) 876,333 Emergency management Personnel 6,420 6,420 1,566 (4,854) 3,957 Materials and supplies 14,200 14,200 9,766 (4,434) - Operation and contractual 9,250 9,250 3,371 (5,879) 2,100 Total emergency management 29,870 29,870 14,703 (15,167) 6,057 (This schedule is continued on the following pages.) -64- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) General services Personnel $ 105,145 $ 105,145 $ 105,026 $ (119) $ 72,318 Materials and supplies 79,770 79,770 67,356 (12,414) 64,781 Operation and contractual 13,550 13,550 14,231 681 10,692 Total general services 198,465 198,465 186,613 (11,852) 147,791 Purchasing Personnel 39,280 39,280 38,086 (1,194) 90,073 '- Materials and supplies 125 125 613 488 79 Operation and contractual 2,000 2,000 216 (1,784) 25 Total purchasing 41,405 41,405 38,915 (2,490) 90,177 ` Information systems Personnel 317,510 282,910 282,175 (735) 396,102 Materials and supplies 30,270 27,610 26,846 (764) 20,403 Operation and contractual 269,750 234,450 231,875 (2,575) 267,766 Capital 117,000 189,560 189,558 (2) 223,852 Total information systems 734,530 734,530 730,454 (4,076) 908,123 + Community events Operation and contractual 155,500 155,500 152,443 (3,057) 149,580 _ Total community events 155,500 155,500 152,443 (3,057) 149,580 Total legislative and general _ management 3,835,845 3,579,060 3,187,637 (391,423) 3,804,380 Community development management Personnel 270,750 270,750 263,968 (6,782) 254,588 Materials and supplies 1,800 1,800 237 (1,563) 173 Operation and contractual 2,050 2,050 - (2,050) 32,615 Total community development management 274,600 274,600 264,205 (10,395) 287,376 Code enforcement Personnel 378,795 378,795 371,851 (6,944) 360,230 _ Materials and supplies 4,300 4,300 1,301 (2,999) 1,287 Operation and contractual 43,940 43,940 46,632 2,692 39,037 Total code enforcement 427,035 427,035 419,784 (7,251) 400,554 Total community development management 701,635 701,635 683,989 (17,646) 687,930 (This schedule is continued on the following pages.) -65- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual GENERAL GOVERNMENT(Continued) Financial services Financial services management Personnel $ 158,940 $ 158,940 $ 103,542 $ (55,398) $ 76,241 Materials and supplies 565 565 537 (28) 595 Operation and contractual 27,990 27,990 28,114 124 24,724 Total financial services management 187,495 187,495 132,193 (55,302) 101,560 Accounting and reporting Personnel 243,675 243,675 247,950 4,275 397,401 Materials and supplies 5,725 5,725 3,456 (2,269) 2,720 _ Operation and contractual 27,385 27,385 23,015 (4,370) 22,672 Total accounting and reporting 276,785 276,785 274,421 (2,364) 422,793 PSEBA benefits Personnel 30,000 30,000 28,145 (1,855) 27,832 Total financial services 494,280 494,280 434,759 (59,521) 552,185 Engineering and capital projects Municipal building improvements Capital 175,500 175,500 157,570 (17,930) 132,773 Total engineering and capital projects 175,500 175,500 157,570 (17,930) 132,773 Expenditure reimbursements paid to other funds 128,875 128,875 128,704 (171) 201,385 Subtotal general government 5,336,135 5,079,350 4,592,659 (486,691) 5,378,653 Less reimbursements from other funds (727,835) (727,835) (727,835) - (348,430) Total general government 4,608,300 4,351,515 3,864,824 (486,691) 5,030,223 PUBLIC SAFETY Police department Police services management Personnel 351,820 439,755 429,597 (10,158) 432,679 Materials and supplies 3,800 3,800 1,318 (2,482) 1,627 Operation and contractual 70,255 127,480 106,329 (21,151) 56,076 Total police services management 425,875 571,035 537,244 (33,791) 490,382 Police field services Personnel 3,769,730 3,964,915 3,945,952 (18,963) 3,750,969 Materials and supplies 33,975 33,975 28,940 (5,035) 34,684 Operation and contractual 242,880 242,880 240,938 (1,942) 240,641 Total police field services 4,046,585 4,241,770 4,215,830 (25,940) 4,026,294 (This schedule is continued on the following pages.) -66- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual _ PUBLIC SAFETY(Continued) Police department(Continued) Police general support Personnel $ 328,165 $ 385,155 $ 376,091 $ (9,064) $ 392,647 Materials and supplies 25,875 25,875 20,080 (5,795) 23,388 Operation and contractual 1,800 1,800 944 (856) 1,487 Total police general support 355,840 412,830 397,115 (15,715) 417,522 Police investigations Personnel 1,006,925 940,925 938,080 (2,845) 754,841 - Materials and supplies 6,100 6,100 5,758 (342) 6,361 Operation and contractual 13,180 13,180 14,534 1,354 13,410 Total police investigations 1,026,205 960,205 958,372 (1,833) 774,612 Police communications center Personnel 833,120 630,375 629,362 (1,013) 741,986 _ Materials and supplies 23,350 23,350 7,444 (15,906) 2,878 Operation and contractual 19,700 98,700 91,716 (6,984) 5,566 Total police communications center 876,170 752,425 728,522 (23,903) 750,430 _ Police records Personnel 124,755 114,305 113,040 (1,265) 173,804 Materials and supplies 7,000 4,505 3,107 (1,398) 3,908 _ Operation and contractual 16,500 6,600 8,458 1,858 12,500 Total police records 148,255 125,410 124,605 (805) 190,212 Public relations/crime prevention Personnel - 28,280 26,288 (1,992) - Materials and supplies - - 703 703 - Operation and contractual - 9,565 9,563 (2) - Total public relations/crime prevention - 37,845 36,554 (1,291) - Total police department 6,878,930 7,101,520 6,998,242 (103,278) 6,649,452 Fire department Fire,rescue and EMS operations _ Personnel 3,999,930 3,958,765 4,502,831 544,066 3,706,345 Materials and supplies 42,025 42,025 39,447 (2,578) 17,011 Operation and contractual 165,670 165,670 163,543 (2,127) 23,476 Capital 10,000 10,000 9,898 (102) 162,200 _ Total fire,rescue and EMS opeartions 4,217,625 4,176,460 4,715,719 539,259 3,909,032 (This schedule is continued on the following pages.) -67- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual PUBLIC SAFETY(Continued) Fire department(Continued) Fire service management Personnel $ 318,115 $ 318,115 $ 296,302 $ (21,813) $ 332,493 .- Materials and supplies 2,185 2,185 1,285 (900) 1,556 Operation and contractual 6,300 6,300 6,936 636 5,827 Total fire service management 326,600 326,600 304,523 (22,077) 339,876 Special teams operations Materials and supplies 5,000 5,000 4,169 (831) 4,336 Operation and contractual 5,975 5,975 4,225 (1,750) 4,270 Total special teams operations 10,975 10,975 8,394 (2,581) 8,606 Rescue and fire training Personnel 32,215 32,215 16,147 (16,068) 24,901 Materials and supplies 300 300 - (300) 129 Total rescue and fire training 32,515 32,515 16,147 (16,368) 25,030 Emergency medical services Personnel 42,435 42,435 29,637 (12,798) 35,190 Materials and supplies 13,525 13,525 8,833 (4,692) 10,116 Operation and contractual 382,785 423,950 424,193 243 479,736 Total emergency medical services 438,745 479,910 462,663 (17,247) 525,042 Total fire department 5,026,460 5,026,460 5,507,446 480,986 4,807,586 Total public safety 11,905,390 12,127,980 12,505,688 377,708 11,457,038 PUBLIC WORKS Mosquito control Operation and contractual 70,915 70,915 69,737 (1,178) 68,090 Total mosquito control 70,915 70,915 69,737 (1,178) 68,090 Buildings and grounds Personnel 92,275 92,275 92,615 340 87,570 Materials and supplies 49,110 57,010 40,486 (16,524) 31,575 Operation and contractual 252,125 244,225 233,307 (10,918) 206,523 Total buildings and grounds 393,510 393,510 366,408 (27,102) 325,668 (This schedule is continued on the following page.) -68- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual _ PUBLIC WORKS(Continued) Forestry Personnel $ 15,595 $ 15,595 $ 6,050 $ (9,545) $ (69) Materials and supplies 1,295 1,295 929 (366) 671 Operation and contractual 217,180 251,375 251,373 (2) 158,665 Total forestry 234,070 268,265 258,352 (9,913) 159,267 Total public works 698,495 732,690 694,497 (38,193) 553,025 CULTURE AND RECREATION Library general operations Personnel 171,390 234,330 229,592 (4,738) 433,546 Materials and supplies 11,620 11,620 11,018 (602) 9,881 Operation and contractual 102,650 102,650 84,664 (17,986) 85,134 Total library general operations 285,660 348,600 325,274 (23,326) 528,561 Library technical services Personnel 183,290 183,290 171,666 (11,624) 176,265 Materials and supplies 3,290 3,290 3,249 (41) 3,170 Operation and contractual 9,735 9,735 9,388 (347) 8,192 Total library technical services 196,315 196,315 184,303 (12,012) 187,627 Library reference and adult services Personnel 153,515 153,515 144,435 (9,080) 180,113 Materials and supplies 100,765 100,765 80,040 (20,725) 99,516 Operation and contractual 2,800 2,800 2,300 (500) 2,300 Total library reference and adult services 257,080 257,080 226,775 (30,305) 281,929 Library youth services Personnel 166,420 103,480 92,224 (11,256) 197,286 Materials and supplies 26,200 26,200 26,046 (154) 26,069 Operation and contractual 1,500 1,500 1,427 (73) 1,500 Total library youth services 194,120 131,180 119,697 (11,483) 224,855 Total culture and recreation 933,175 933,175 856,049 (77,126) 1,222,972 Debt service Principal 245,000 245,000 245,000 205,000 Interest and fiscal charges 55,175 55,175 52,529 (2,646) 95,415 Total debt service 300,175 300,175 297,529 (2,646) 300,415 TOTAL EXPENDITURES $ 18,445,535 $ 18,445,535 $ 18,218,587 $ (226,948) $ 18,563,673 (See indepedent auditor's report.) -69- (This page is intentionally left blank.) VILLAGE OF OAK BROOK,ILLINOIS INFRASTRUCTURE FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual REVENUES Intergovernmental-grants $ - $ - $ 674,368 $ 674,368 $ 402 Non-home rule sales tax 4,231,000 4,231,000 4,833,425 602,425 4,410,438 Investment income 12,500 12,500 7,223 (5,277) 10,039 - Miscellaneous - - 13,458 13,458 5,040 Total revenues 4,243,500 4,243,500 5,528,474 1,284,974 4,425,919 EXPENDITURES Public works Geographic information systems Personnel 50 50 - (50) 50 Materials and supplies 2,000 2,000 1,173 (827) 654 Operation and contractual 173,345 173,345 174,441 1,096 169,899 Capital outlay 17,600 17,600 14,857 (2,743) 6,490 Total geographic information systems 192,995 192,995 190,471 (2,524) 177,093 Management Personnel 281,055 281,055 278,483 (2,572) 347,146 Materials and supplies 1,730 1,730 1,271 (459) 1,595 Operation and contractual 277,955 277,955 277,096 (859) 108,011 Total management 560,740 560,740 556,850 (3,890) 456,752 Streets-general salaries Personnel 664,920 714,920 714,496 (424) 732,282 Materials and supplies 4,220 4,220 2,122 (2,098) 3,308 Operation and contractual 2,885 2,885 2,868 (17) 3,140 Total streets-general salaries 672,025 722,025 719,486 (2,539) 738,730 Streets and traffic maintenance _ Materials and supplies 40,980 28,595 17,929 (10,666) 13,706 Operation and contractual 319,170 301,555 281,560 (19,995) 288,068 Total streets and traffic maintenance 360,150 330,150 299,489 (30,661) 301,774 Snow removal Personnel 58,660 58,660 58,175 (485) 59,692 Materials and supplies 121,500 101,500 87,490 (14,010) 143,415 Operation and contractual 62,495 62,495 56,495 (61000) 68,540 Total snow removal 242,655 222,655 202,160 (20,495) 271,647 Drainage maintenance _ Materials and supplies 20,000 20,000 5,785 (14,215) 3,932 Operation and contractual 61,140 61,140 57,793 (31347) 60,448 Total drainage maintenance 81,140 81,140 63,578 (17,562) 64,380 Safety pathway maintenance Materials and supplies 42,345 42,345 - (42,345) 3,103 Operation and contractual 66,585 66,585 66,582 (3) 25,840 Total safety pathway maintenance 108,930 108,930 66,582 (42,348) 28,943 (This schedule is continued on the following page.) -70- VILLAGE OF OAK BROOK,ILLINOIS INFRASTRUCTURE FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) Variance Original Final Over 2009 Budget Budget Actual (Under) Actual EXPENDITURES(Continued) Engineering and capital projects Engineering Personnel $ 382,205 $ 382,205 $ 364,451 $ (17,754) $ 503,068 Materials and supplies 1,390 1,390 37 (1,353) 932 Operation and contractual 25,720 25,720 21,486 (4,234) 8,871 Total engineering 409,315 409,315 385,974 (23,341) 512,871 Roadway improvements Operation and contractual 116,000 116,000 94,405 (21,595) 102,258 Intergovernmental agreements 1,008,000 1,008,000 983,470 (24,530) 7,508,606 Capital outlay - - - 582,570 Total roadway improvements 1,124,000 1,124,000 1,077,875 (46,125) 8,193,434 Stormwater management improvements Operation and contractual 56,000 56,000 1,000 (55,000) 4,777 Capital outlay 15,000 15,000 10,156 (4,844) 49,091 Total stormwater management improvements 71,000 71,000 11,156 (59,844) 53,868 --- Safety pathway improvements Operation and contractual 13,000 13,000 220 (12,780) - Capital outlay 45,500 45,500 - (45,500) Total safety pathway improvements 58,500 58,500 220 (58,280) - Note payment 1,501,163 1,501,163 1,501,163 - 1,501,163 Expenditure reimbursement paid to other funds 127,985 127,985 128,156 171 98,625 Subtotal expenditures 5,510,598 5,510,598 5,203,160 (307,438) 12,399,280 Less reimbursements from other funds (334,710) (334,710) (334,710) (354,780) Total expenditures 5,175,888 5,175,888 4,868,450 (307,438) 12,044,500 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (932,388) (932,388) 660,024 1,592,412 (7,618,581) OTHER FINANCING SOURCES(USES) Note proceeds - - 7,508,606 Total other financing sources(uses) - - 7,508,606 NET CHANGE IN FUND BALANCE $ (932,388) $ (932,388) 660,024 $ 1,592,412 (109,975) FUND BALANCE,JANUARY 1 4,682,620 4,792,595 FUND BALANCE,DECEMBER 31 $ 5,342,644 $ 4,682,620 (See independent auditor's report.) -71- NONMAJOR GOVERNMENTAL FUNDS VILLAGE OF OAK BROOK,ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31,2010 Capital Special Revenue Funds Projects Fund Total — Foreign Fire Nonmajor Hotel/Motel Motor Insurance Promenade Governmental Tax Fuel Tax Tax TIF Funds ASSETS Cash and investments $ 2,388,545 $ 857,913 $ 172,272 $ 216,926 $ 3,635,656 — Receivables Allotments - 18,741 - - 18,741 Other,hotel/motel tax 66,150 - - - 66,150 — TOTAL ASSETS $ 2,454,695 $ 876,654 $ 172,272 $ 216,926 $ 3,720,547 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 47,576 $ - $ - $ - $ 47,576 — Total liabilities 47,576 - - - 47,576 FUND BALANCES Restricted Highways and streets - 876,654 - - 876,654 _ Public safety - - 172,272 - 172,272 Culture and recreation 2,407,119 - - - 2,407,119 Economic development - - - 216,926 216,926 Total fund balances 2,407,119 876,654 172,272 216,926 3,672,971 TOTAL LIABILITIES AND — FUND BALANCES $ 2,454,695 $ 876,654 $ 172,272 $ 216,926 $ 3,720,547 (See independent auditor's report.) -� -72- VILLAGE OF OAK BROOK,ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES For the Year Ended December 31,2010 Capital Special Revenue Funds Projects Fund Total �. Foreign Fire Nonmajor Hotel/Motel Motor Fuel Insurance Promenade Governmental Tax Tax Tax TIF Funds REVENUES Intergovernmental $ - $ 258,748 $ 39,808 $ 430,358 $ 728,914 Hotel/motel taxes 881,887 - - - 881,887 Investment income 6,250 1,974 2,754 155 11,133 Total revenues 888,137 260,722 42,562 430,513 1,621,934 EXPENDITURES Current General government - - - 5,094 5,094 Public safety - - 41,148 - 41,148 Culture and recreation 680,804 - - - 680,804 Debt service Principal - - - 23,100 23,100 Interest and fiscal charges - - - 410,468 410,468 Total expenditures 680,804 - 41,148 438,662 1,160,614 NET CHANGE IN FUND BALANCES 207,333 260,722 1,414 (8,149) 461,320 FUND BALANCES,JANUARY 1 2,199,786 615,932 170,858 225,075 3,211,651 FUND BALANCES,DECEMBER 31 $ 2,407,119 $ 876,654 $ 172,272 $ 216,926 $ 3,672,971 (See independent auditor's report.) -73 - VILLAGE OF OAK BROOK,ILLINOIS HOTEL/MOTEL TAX FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL — For the Year Ended December 31,2010 (With Comparative Actual) ` 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual REVENUES Hotel/motel taxes $ 825,000 $ 825,000 $ 881,887 $ 56,887 $ 882,649 — Investment income 10,000 10,000 6,250 (3,750) 5,920 Total revenues 835,000 835,000 888,137 53,137 888,569 EXPENDITURES Current Culture and recreation 604,890 604,890 341,964 (262,926) 361,068 Expenditure reimbursement paid to other funds 338,840 338,840 338,840 - 12,400 Total expenditures 943,730 943,730 680,804 (262,926) 373,468 NET CHANGE IN FUND BALANCE $ (108,730) $ (108,730) 207,333 $ 316,063 515,101 FUND BALANCE,JANUARY 1 2,199,786 1,684,685 FUND BALANCE,DECEMBER 31 $ 2,407,119 $ 2,199,786 _ (See independent auditor's report.) -74- VILLAGE OF OAK BROOK,ILLINOIS MOTOR FUEL TAX FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual '— REVENUES Intergovernmental $ 225,500 $ 225,500 $ 258,748 $ 33,248 $ 222,860 Investment income 3,750 3,750 1,974 (1,776) 1,578 Total revenues 229,250 229,250 260,722 31,472 224,438 EXPENDITURES Current None - - - - - Total expenditures - - - - - NET CHANGE IN FUND BALANCE $ 229,250 $ 229,250 260,722 $ 31,472 224,438 FUND BALANCE,JANUARY 1 615,932 391,494 FUND BALANCE,DECEMBER 31 $ 876,654 $ 615,932 (See independent auditor's report.) -75- VILLAGE OF OAK BROOK,ILLINOIS FOREIGN FIRE INSURANCE FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual — REVENUES Intergovernmental $ 45,000 $ 45,000 $ 39,808 $ (5,192) $ 60,388 _ Investment income 475 475 2,754 2,279 319 Total revenues 45,475 45,475 42,562 (2,913) 60,707 EXPENDITURES Current Public safety 45,030 45,030 41,148 (3,882) 39,643 Total expenditures 45,030 45,030 41,148 (3,882) 39,643 NET CHANGE IN FUND BALANCE $ 445 $ 445 1,414 $ 969 21,064 FUND BALANCE,JANUARY 1 170,858 149,794 FUND BALANCE,DECEMBER 31 $ 172,272 $ 170,858 (See independent auditor's report.) -76- .. VILLAGE OF OAK BROOK,ILLINOIS PROMENADE TIF FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual REVENUES Property tax $ 347,400 $ 347,400 $ 360,467 $ 13,067 $ 347,393 Sales tax - - 69,891 69,891 - Investment income 240 240 155 (85) 203 Total revenues 347,640 347,640 430,513 82,873 347,596 EXPENDITURES i Current General government 3,300 3,300 5,094 1,794 2,831 Debt service Principal - 23,100 23,100 - - Interest and fiscal charges 437,000 413,900 410,468 (3,432) 325,000 Total expenditures 440,300 440,300 438,662 (1,638) 327,831 a EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (92,660) (92,660) (8,149) 84,511 19,765 OTHER FINANCING SOURCES(USES) Transfers in 68,000 68,000 (68,000) 68,980 Total other financing sources(uses) 68,000 68,000 - (68,000) 68,980 NET CHANGE IN FUND BALANCE $ (24,660) $ (24,660) (8,149) $ 16,511 88,745 FUND BALANCE,JANUARY 1 225,075 136,330 FUND BALANCE,DECEMBER 31 $ 216,926 $ 225,075 a.. e.. (See independent auditor's report.) -77- 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 �. For the Year Ended December 31,2010 (With Comparative Actual) 2010 -� Variance Original Final Over 2009 Budget Budget Actual (Under) Actual r OPERATING REVENUES Charges for services Water sales $ 4,600,000 $ 4,600,000 $ 4,916,596 $ 316,596 $ 3,854,234 Unmetered sales 25,000 25,000 21,991 (3,009) 22,215 Water tap on charges 50,000 50,000 5,520 (44,480) 36,800 Meter fees and special services 33,000 33,000 29,927 (3,073) 32,848 Miscellaneous 66,000 66,000 65,571 (429) 46,042 Total operating revenues 4,774,000 4,774,000 5,039,605 265,605 3,992,139 OPERATING EXPENSES Operation of facilities 9,038,595 9,038,595 3,995,311 (5,043,284) 3,611,742 Depreciation and amortization - - 438,919 438,919 418,182 .. Total operating expenses 9,038,595 9,038,595 4,434,230 (4,604,365) 4,029,924 OPERATING INCOME(LOSS) (4,264,595) (4,264,595) 605,375 4,869,970 (37,785) NONOPERATING REVENUES (EXPENSES) -- Investment income 37,500 37,500 25,606 (11,894) 24,152 Gain(loss)on sale of capital assets - - (89,487) (89,487) 2,000 Total nonoperating revenues (expenses) 37,500 37,500 (63,881) (101,381) 26,152 CHANGE IN NET ASSETS (4,227,095) S (4,227,095) 541,494 S 4,768,589 (11,633) �• NET ASSETS,JANUARY 1 18,524,783 18,536,416 NET ASSETS,DECEMBER 31 S 19.066.277 S 18.524,783 r (See independent auditor's report.) -78- '— VILLAGE OF OAK BROOK,ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual OPERATING EXPENSES EXCLUDING DEPRECIATION Operation of facilities Public works-water operations -- Personnel $ 713,360 $ 713,360 $ 674,542 $ (38,818) $ 689,675 Materials and supplies 81,485 100,220 87,882 (12,338) 89,006 Operation and contractual 3,558,490 3,539,755 2,792,669 (747,086) 2,399,081 Reimbursements for general fund services 440,420 440,420 440,420 - 433,980 Total public works-water operations 4,793,755 4,793,755 3,995,513 (798,242) 3,611,742 Capital improvements Capital outlay 4,244,840 4,244,840 2,083,181 (2,161,659) 1,215,635 Total capital improvements 4,244,840 4,244,840 2,083,181 (2,161,659) 1,215,635 TOTAL OPERATING EXPENSES EXCLUDING DEPRECIATION- BUDGETARY BASIS $ 9,038,595 $ 9,038,595 6,078,694 L__(2,959,901) 4,827,377 ADJUSTMENTS TO GAAP BASIS Capital expenditures (2,083,383) (1,215,635) Depreciation and amortization expense 438,919 418,182 Total adjustments to GAAP basis (1,644,464) (797,453) TOTAL OPERATING EXPENSES $ 4,434,230 $ 4,029,924 (See independent auditor's report.) -79- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual OPERATING REVENUES Charges for services Golf $ 2,374,250 $ 2,374,250 $ 1,776,211 $ (598,039) $ 2,077,084 Bath and tennis 394,050 394,050 420,445 26,395 335,748 Food and beverage 456,900 456,900 350,727 (106,173) 874,552 �- Total operating revenues 3,225,200 3,225,200 2,547,383 (677,817) 3,287,384 OPERATING EXPENSES Golf club 1,883,205 1,802,995 1,697,504 (105,491) 1,647,866 Bath and tennis 697,460 697,460 655,692 (41,768) 643,905 Food and beverage 451,965 532,175 458,561 (73,614) 898,104 Depreciation - - 254,323 254,323 265,255 Total operating expenses 3,032,630 3,032,630 3,066,080 33,450 3,455,130 OPERATING INCOME(LOSS) 192,570 192,570 (518,697) (711,267) (167,746) NONOPERATING REVENUES (EXPENSES) Investment income 2,500 2,500 619 (1,881) 1,102 Interest expense (10,100) (10,100) (9,845) 255 (16,055) Total nonoperating revenues (expenses) (7,600) (7,600) (9,226) (1,626) (14,953) CHANGE IN NET ASSETS $ 184,970 $ 184,970 (527,923) $ (712,893) (182,699) NET ASSETS,JANUARY 1 10,882,270 11,064,969 NET ASSETS,DECEMBER 31 $ 10,354,347 $ 10,882,270 (See independent auditor's report.) -80- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING REVENUES-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual CHARGES FOR SERVICES Golf Fees $ 1,750,050 $ 1,750,050 $ 1,255,025 $ (495,025) $ 1,537,776 Golf surcharge 67,500 67,500 56,633 (10,867) 59,459 Memberships 308,700 308,700 268,920 (39,780) 276,214 Merchandise sales 248,000 248,000 195,633 (52,367) 203,635 Total golf 2,374,250 2,374,250 1,776,211 (598,039) 2,077,084 Bath and tennis Fees 184,475 184,475 210,056 25,581 135,805 Memberships 205,475 205,475 209,795 4,320 201,399 Merchandise sales 1,500 1,500 871 (629) 169 Miscellaneous 2,600 2,600 (277) (2,877) (1,625) ._ Total bath and tennis 394,050 394,050 420,445 26,395 335,748 Food and beverage Food sales 155,600 155,600 131,894 (23,706) 512,524 Beverage sales 201,300 201,300 146,451 (54,849) 290,227 Miscellaneous 100,000 100,000 72,382 (27,618) 71,801 Total food and beverage 456,900 456,900 350,727 (106,173) 874,552 TOTAL OPERATING REVENUES $ 3,225,200 $ 3,225,200 $ 2,547,383 $ (677,817) $ 3,287,384 (See independent auditor's report.) -81 - VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 _ Variance Original Final Over 2009 Budget Budget Actual (Under) Actual OPERATING EXPENSES EXCLUDING DEPRECIATION Operations-golf club _ Golf club general operations Personnel $ 453,805 $ 460,450 $ 449,687 $ (10,763) $ 491,107 Materials and supplies 226,290 174,835 199,036 24,201 162,225 Operation and contractual 244,165 236,930 232,209 (4,721) 215,853 Capital outlay 21,000 - - - - Total golf club general operations 945,260 872,215 880,932 8,717 869,185 _ Golf club range operations Personnel 72,625 65,460 49,412 (16,048) 42,100 _ Materials and supplies 23,500 23,500 11,163 (12,337) 8,055 Operation and contractual 14,700 14,700 9,981 (4,719) 17,232 Capital outlay 10,000 10,000 - (10,000) - Total golf club range operations 120,825 113,660 70,556 (43,104) 67,387 Golf cart operations _ Personnel 34,610 34,610 14,088 (20,522) 10,013 Materials and supplies 3,400 3,400 444 (2,956) 370 Operation and contractual 5,000 5,000 5,953 953 44,988 Total golf cart operations 43,010 43,010 20,485 (22,525) 55,371 Golf course maintenance Personnel 495,295 489,510 490,472 962 480,864 Materials and supplies 171,865 207,320 206,479 (841) 143,181 Operation and contractual 30,950 33,865 28,580 (5,285) 31,878 Debt service-principal - - - - 100,000 Capital outlay 76,000 43,415 - (43,415) 37,430 Total golf course maintenance 774,110 774,110 725,531 (48,579) 793,353 Total operations-golf club 1,883,205 1,802,995 1,697,504 (105,491) 1,785,296 (This schedule is continued on the following pages.) - -82- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance _ Original Final Over 2009 Budget Budget Actual (Under) Actual OPERATING EXPENSES EXCLUDING '- DEPRECIATION(Continued) Operations-bath and tennis General operations-Sports Core,Polo and Open Fields Personnel $ 191,410 $ 234,800 $ 238,389 $ 3,589 $ 249,750 Materials and supplies 26,000 20,520 17,272 (3,248) 25,414 Operation and contractual 153,185 124,480 121,078 (3,402) 125,775 Capital outlay 18,000 18,000 - (18,000) - Total general operations 388,595 397,800 376,739 (21,061) 400,939 Swimming operations Personnel 28,120 28,120 36,028 7,908 20,020 Materials and supplies 30,695 37,590 34,861 (2,729) 26,168 Operation and contractual 98,345 108,020 109,956 1,936 105,651 Capital outlay 30,000 9,470 - (9,470) 9,204 Total swimming operations 187,160 183,200 180,845 (2,355) 161,043 Tennis operations-outdoor Personnel 89,830 89,830 82,506 (7,324) 69,334 Materials and supplies 4,550 4,550 3,255 (1,295) 3,027 Operation and contractual 17,325 17,325 12,347 (4,978) 18,766 Capital outlay 10,000 4,755 - (4,755) 6,280 Total tennis operations-outdoor 121,705 116,460 98,108 (18,352) 97,407 Total operations-bath and tennis 697,460 697,460 655,692 (41,768) 659,389 Food and beverage Clubhouse Personnel 27,120 57,505 67,833 10,328 356,463 Materials and supplies 2,250 2,250 4,544 2,294 164,801 Operation and contractual 50,770 67,785 69,507 1,722 111,207 Debt service-principal 100,000 100,000 100,000 - 100,000 Capital outlay 6,500 - - - - Total clubhouse 186,640 227,540 241,884 14,344 732,471 (This schedule is continued on the following page.) -83- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2010 (With Comparative Actual) 2010 _ Variance Original Final Over 2009 Budget Budget Actual (Under) Actual OPERATING EXPENSES EXCLUDING DEPRECIATION(Continued) Food and beverage(Continued) Poolside grill Personnel $ - $ - $ - $ - $ 2,436 Materials and supplies 100 100 858 758 56 Operation and contractual 2,300 2,300 1,821 (479) 1,606 Total poolside grill 2,400 2,400 2,679 279 4,098 Golf clubhouse Personnel 112,300 136,700 146,306 9,606 127,678 Materials and supplies 143,200 154,975 155,636 661 124,863 _ Operation and contractual 7,425 10,560 12,056 1,496 8,994 Total golf clubhouse 262,925 302,235 313,998 11,763 261,535 Total food and beverage 451,965 532,175 558,561 26,386 998,104 TOTAL OPERATING EXPENSES- BUDGETARY BASIS $ 3,219,270 $ 3,260,170 2,911,757 $ 106,529 3,442,789 ADJUSTMENTS TO GAAP BASIS Capital expenditures - (52,914) Depreciation expense 254,323 265,255 Debt service-principal (100,000) (200,000) Total adjustments to GAAP basis 154,323 12,341 TOTAL OPERATING EXPENSES $ 3,066,080 $ 3,455,130 i (See independent auditor's report.) -84- 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, 2010 Self- Capital Insurance Garage Replacement Total CURRENT ASSETS Cash and investments $ 1,237,168 $ 91,010 $ 3,262,957 $ 4,591,135 Receivables Other 29,582 530 - 30,112 Inventories - 55,151 - 55,151 Prepaid expenses 16,485 - - 16,485 Total current assets 1,283,235 146,691 3,262,957 4,692,883 CAPITAL ASSETS - Depreciable, net of accumulated depreciation - 79,543 1,964,362 2,043,905 Net capital assets - 79,543 1,964,362 2,043,905 Total assets 1,283,235 226,234 5,227,319 6,736,788 -- CURRENT LIABILITIES Accounts payable 221,599 24,400 - 245,999 Accrued payroll 10,160 3,916 - 14,076 Compensated absences payable - 11,318 - 11,318 Deferred revenue 39,014 - - 39,014 Claims payable 118,930 - - 118,930 Total current liabilities 389,703 39,634 - 429,337 NET ASSETS Invested in capital assets,net - of related debt - 79,543 1,964,362 2,043,905 Unrestricted 893,532 107,057 3,262,957 4,263,546 TOTAL NET ASSETS $ 893,532 $ 186,600 $ 5,227,319 $ 6,307,451 (See independent auditor's report.) _ - 85 - -- VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31,2010 Self- Capital Insurance Garage Replacement Total OPERATING REVENUES Charges for services $ 2,541,834 $ 642,785 $ 166,185 $ 3,350,804 Total operating revenues 2,541,834 642,785 166,185 3,350,804 OPERATING EXPENSES Claims and insurance 2,521,671 - - 2,521,671 Garage operations - 633,166 - 633,166 Miscellaneous - - 5,449 5,449 Depreciation - 4,834 333,609 338,443 -- Total operating expenses 2,521,671 638,000 339,058 3,498,729 OPERATING INCOME(LOSS) 20,163 4,785 (172,873) (147,925) NONOPERATING REVENUES(EXPENSES) Investment income 1,826 229 18,480 20,535 Gain on sale of capital assets - - 10,251 10,251 Total nonoperating revenues(expenses) 1,826 229 28,731 30,786 CHANGE IN NET ASSETS 21,989 5,014 (144,142) (117,139) NET ASSETS,JANUARY 1 871,543 181,586 5,371,461 6,424,590 NET ASSETS,DECEMBER 31 $ 893,532 $ 186,600 $ 5,227,319 $ 6,307,451 (See independent auditor's report.) - 86- i VILLAGE OF OAK BROOK,ILLINOIS — INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31,2010 Self- Capital Insurance Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from internal services transactions $ 2,551,847 $ 642,777 $ 166,185 $ 3,360,809 Payments to suppliers (2,497,808) (431,758) (7,463) (2,937,029) Payments to employees - (221,691) - (221,691) Net cash from operating activities 54,039 (10,672) 158,722 202,089 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES None - - i Net cash from noncapital financing activities - - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets - (57,627) (97,753) (155,380) Proceeds from sale of capital assets - - 10,251 10,251 Net cash from capital and related financing activities - (57,627) (87,502) (145,129) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments - - (14,603) (14,603) Interest received 1,826 229 18,480 20,535 �. Net cash from investing activities 1,826 229 3,877 5,932 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS 55,865 (68,070) 75,097 62,892 CASH AND CASH EQUIVALENTS, JANUARY 1 1,181,303 159,080 2,462,606 3,802,989 CASH AND CASH EQUIVALENTS, .•. DECEMBER 31 $ 1,237,168 $ 91,010 $ 2,537,703 $ 3,865,881 CASH AND INVESTMENTS Cash and cash equivalents $ 1,237,168 $ 91,010 $ 2,537,703 $ 3,865,881 ^ Investments - - 725,254 725,254 TOTAL CASH AND INVESTMENTS $ 1,237,168 $ 91,010 $ 3,262,957 $ 4,591,135 _ (This statement is continued on the following page.) -87- VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS(Continued) For the Year Ended December 31,2010 r.. k i, Self- Capital Insurance Garage Replacement Total RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ 20,163 $ 4,785 $ (172,873) $ (147,925) �. Depreciation - 4,834 333,609 338,443 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable 1,022 (8) - 1,014 Inventories - (9,723) - (9,723) Prepaid expenses 929 - - 929 +- Accounts payable 27,604 (13,506) (2,014) 12,084 Accrued payroll and compensated absences 10,160 2,946 13,106 Deferred revenue (1,169) - (1,169) Claims payable (4,670) - - (4,670) NET CASH FROM OPERATING ACTIVITIES $ 54,039 $ (12,672)_$ 158,722 $ 202,089 (See independent auditor's report.) -88- VILLAGE OF OAK BROOK,ILLINOIS SELF-INSURANCE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual _ OPERATING REVENUES Charges for services $ 2,773,540 $ 2,773,540 $ 2,541,834 $ (231,706) $ 2,389,411 Total operating revenues 2,773,540 2,773,540 2,541,834 (231,706) 2,389,411 OPERATING EXPENSES Claims and insurance Insurance and administration 592,200 580,530 525,556 (54,974) 547,704 Health claims 2,007,000 2,007,000 1,804,445 (202,555) 1,770,048 .. Dental claims 180,000 191,670 191,670 - 182,390 Total operating expenses 2,779,200 2,779,200 2,521,671 (257,529) 2,500,142 OPERATING INCOME(LOSS) (5,660) (5,660) 20,163 25,823 (110,731) NONOPERATING REVENUES (EXPENSES) Investment income 6,250 6,250 1,826 (4,424) 3,427 Total nonoperating revenues (expenses) 6,250 6,250 1,826 (4,424) 3,427 CHANGE IN NET ASSETS $ 590 $ 590 21,989 $ 21,399 (107,304) NET ASSETS,JANUARY 1 871,543 978,847 NET ASSETS,DECEMBER 31 $ 893,532 $ 871,543 s �r (See independent auditor's report.) -89- ' VILLAGE OF OAK BROOK,ILLINOIS GARAGEFUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance ... Original Final Over 2009 Budget Budget Actual (Under) Actual *- OPERATING REVENUES Charges for services $ 642,785 $ 642,785 $ 642,785 $ - S 656,375 Total operating revenues 642,785 642,785 642,785 - 656,375 OPERATING EXPENSES EXCLUDING DEPRECIATION *� Garage operations Personnel 212,660 212,660 224,637 11,977 207,508 Materials and supplies 170,195 197,980 192,629 (5,351) 155,277 Operations and contractual 200,845 200,845 189,475 (11,370) 202,999 Expense reimbursements paid to other funds 26,425 26,425 26,425 - 25,800 Capital outlay 15,135 29,850 57,628 27,778 - Total operating expenses excluding depreciation 625,260 667,760 690,794 23,034 591,584 OPERATING INCOME(LOSS) 17,525 (24,975) (48,009) (23,034) 64,791 NONOPERATING REVENUES (EXPENSES) Investment income 625 625 229 (396) 298 Total nonoperating revenues (expenses) 625 625 229 (396) 298 CHANGE IN NET ASSETS- BUDGETARY BASIS $ 18,150 S (24,350) (47,780) $ (23,430) 65,089 ADJUSTMENTS TO GAAP BASIS ... Capital expenditures 57,628 - Depreciation expense (4,834) (1,998) Total adjustments to GAAP basis 52,794 (1,998) CHANGE IN NET ASSETS-GAAP BASIS 5,014 63,091 NET ASSETS,JANUARY 1 181,586 118,495 NET ASSETS,DECEMBER 31 $ 186,600 $ 181,586 (See independent auditor's report.) -90- VILLAGE OF OAK BROOK,ILLINOIS CAPITAL REPLACEMENT FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL - For the Year Ended December 31,2010 (With Comparative Actual) _ 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual OPERATING REVENUES Charges for services $ 166.185 S 166,185 $ 166,185 S - S 204,270 Total operating revenues 166,185 166,185 166,185 - 204,270 OPERATING EXPENSES EXCLUDING - DEPRECIATION Capital outlay 156,480 108,530 97,751 (10,779) 341,757 Miscellaneous - 5,450 5,449 (1) 10,269 Total operating expenses excluding depreciation 156,480 113,980 103,200 (10,780) 352,026 OPERATING INCOME(LOSS) 9,705 52,205 62,985 (10,780) (147,756) NONOPERATING REVENUES (EXPENSES) Investment income 31,250 31,250 18,480 (12,770) 15,232 Gain on sale of capital assets 20,000 20,000 10,251 (9,749) 23,219 Total nonoperating revenues (expenses) 51,250 51,250 28,731 (22,519) 38,451 CHANGE IN NET ASSETS- BUDGETARY BASIS S 60,955 S 103,455 91,716 S (11,739) (109,305) ADJUSTMENTS TO GAAP BASIS Capital expenditures 97,751 341,757 Depreciation expense (333,609) (335,782) Total adjustments to GAAP basis (235,858) 5,975 CHANGE IN NET ASSETS-GAAP BASIS (144,142) (103,330) NET ASSETS,JANUARY 1 5,371,461 5,474,791 NET ASSETS,DECEMBER 31 S 5.227,319 S 5,371,461 (See independent auditor's report.) -91 - i i PENSION TRUST FUNDS Police Pension Fund- to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn police personnel at rates fixed by state statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. ._ Firefighters' Pension Fund- to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn fire personnel at rates fixed by state statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. VILLAGE OF OAK BROOK, ILLINOIS FIDUCIARY FUNDS COMBINING STATEMENT OF PLAN NET ASSETS — December 31, 2010 Pension Trust Police Firefighters' Pension Pension Total ASSETS Cash $ 172,091 $ 163,047 $ 335,138 — Investments Illinois Funds 27,937 139,785 167,722 _ Money market mutual funds 1,081,090 132,431 1,213,521 Certificates of deposit - 103,279 103,279 U.S. Treasury securities 3,273,293 1,015,161 4,288,454 — U.S. agency securities 9,022,254 7,735,227 16,757,481 State and local obligations 2,832,533 2,407,533 5,240,066 Mutual funds 10,542,895 10,475,968 21,018,863 — Equities 1,353,464 - 1,353,464 Accrued interest receivable 132,252 107,344 239,596 Total assets 28,437,809 22,279,775 50,717,584 LIABILITIES Accounts payable 16,452 3,977 20,429 Total liabilities 16,452 3,977 20,429 NET ASSETS HELD IN TRUST FOR PENSION PLAN BENEFITS $ 28,421,357 $ 22,275,798 $ 50,697,155 (See independent auditor's report.) - - 92 - VILLAGE OF OAK BROOK, ILLINOIS FIDUCIARY FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS For the Year Ended December 31, 2010 Pension Trust Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer $ 944,808 $ 933,925 $ 1,878,733 Employee 330,556 286,332 616,888 Total contributions 1,275,364 1,220,257 2,495,621 Investment income Net appreciation in fair value of investments 1,845,946 1,509,158 3,355,104 Interest 701,444 674,151 1,375,595 Total investment income 2,547,390 2,183,309 4,730,699 Less investment expense (76,195) (28,661) (104,856) Net investment income 2,471,195 2,154,648 4,625,843 Total additions 3,746,559 3,374,905 7,121,464 DEDUCTIONS Benefits and refunds 1,682,802 1,845,870 3,528,672 Administrative 34,037 32,498 66,535 Total deductions 1,716,839 1,878,368 3,595,207 NET INCREASE 2,029,720 1,496,537 3,526,257 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 26,391,637 20,779,261 47,170,898 December 31 $ 28,421,357 $ 22,275,798 $ 50,697,155 (See independent auditor's report.) - 93 - VILLAGE OF OAK BROOK,ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 — Variance Original Final Over 2009 Budget Budget Actual (Under) Actual ADDITIONS Contributions _ Employer $ 1,024,860 $ 1,024,860 $ 944,808 $ (80,052) $ 958,641 Employee 338,545 338,545 330,556 (7,989) 316,883 Total contributions 1,363,405 1,363,405 1,275,364 (88,041) 1,275,524 — Investment income Net appreciation in fair value of investments - - 1,845,946 1,845,946 1,801,161 Interest 2,100,000 2,100,000 701,444 (1,398,556) 702,812 Total investment income 2,100,000 2,100,000 2,547,390 447,390 2,503,973 Less investment expense (65,000) (65,000) (76,195) (11,195) (73,003) Net investment income 2,035,000 2,035,000 2,471,195 436,195 2,430,970 Total additions 3,398,405 3,398,405 3,746,559 348,154 3,706,494 — DEDUCTIONS Benefits and refunds 1,756,010 1,756,010 1,682,802 (73,208) 1,638,301 Administrative 35,240 35,240 34,037 (1,203) 25,805 Total deductions 1,791,250 1,791,250 1,716,839 (74,411) 1,664,106 _ NET INCREASE $ 1,607,155 $ 1,607,155 2,029,720 $ 422,565 2,042,388 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 26,391,637 24,349,249 December 31 $ 28,421,357 $ 26,391,637 (See independent auditor's report.) - -94- VILLAGE OF OAK BROOK,ILLINOIS FIREFIGHTERS'PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2010 (With Comparative Actual) 2010 Variance Original Final Over 2009 Budget Budget Actual (Under) Actual ADDITIONS Contributions Employer $ 918,770 $ 918,770 $ 933,925 $ 15,155 $ 839,550 Employee 245,605 245,605 286,332 40,727 225,963 Total contributions 1,164,375 1,164,375 1,220,257 55,882 1,065,513 Investment income Net appreciation in fair value of investments - - 1,509,158 1,509,158 1,771,002 Interest 2,200,000 2,200,000 674,151 (1,525,849) 592,764 Total investment income 2,200,000 2,200,000 2,183,309 (16,691) 2,363,766 Less investment expense (30,000) (30,000) (28,661) 1,339 (27,143) Net investment income 2,170,000 2,170,000 2,154,648 (15,352) 2,336,623 Total additions 3,334,375 3,334,375 3,374,905 40,530 3,402,136 DEDUCTIONS Benefits and refunds 1,846,860 1,846,860 1,845,870 (990) 1,714,463 Administrative 36,290 36,290 32,498 (3,792) 27,063 Total deductions 1,883,150 1,883,150 1,878,368 (4,782) 1,741,526 -- NET INCREASE $ 1,451,225 $ 1,451,225 1,496,537 $ 45,312 1,660,610 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 20,779,261 19,118,651 December 31 $ 22,275,798 $ 20,779,261 (See independent auditor's report.) -95- STATISTICAL SECTION This part of the Village of Oak Brook, Illinois comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the Village's overall financial health. Contents Page 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. 96-102 Revenue Capacity These schedules contain information to help the reader assess the Village's ability to generate its property and sales taxes. 103-106 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. 107-109 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. 110-117 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. 118-121 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implemented GASB Statement No. 34 in 2003; schedules presenting government-wide information include information beginning in that year. I I f I I I I I I i R I I I 1 I 1 i I VILLAGE OF OAK BROOK,ILLINOIS NET ASSETS BY COMPONENT Last Eight Fiscal Years Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 GOVERNMENTAL ACTIVITIES Invested in capital assets net of related debt $ 61.9 $ 61.8 $ 63.3 $ 63.0 $ 62.4 $ 61.6 $ 60.6 $ 55.3 Restricted 1.1 0.9 0.6 - - - - 3.5 Unrestricted 15.7 15.8 16.2 17.7 19.7 22.7 16.9 17.4 TOTAL GOVERNMENT ACTIVITIES $ 78.7 $ 78.5 $ 80.1 $ 80.7 $ 82.1 $ 84.3 $ 77.5 $ 76.2 BUSINESS-TYPE ACTIVITIES Invested in capital assets net of related debt $ 23.9 $ 24.0 $ 23.8 $ 23.3 $ 22.7 $ 24.5 $ 24.5 $ 26.5 Restricted - - - - - - - - Unrestricted 3.0 2.5 4.0 5.0 7.0 5.8 5.5 3.6 TOTAL BUSINESS-TYPE ACTIVITIES $ 26.8 $ 26.5 $ 27.8 $ 28.3 $ 29.7 $ 30.3 $ 30.0 $ 30.1 PRIMARY GOVERNMENT Invested in capital assets net of related debt $ 85.8 $ 85.8 $ 87.1 $ 86.3 $ 85.1 $ 86.1 $ 85.1 $ 81.8 Restricted 1.1 0.9 0.6 - - - - 3.5 Unrestricted 18.7 18.3 20.2 22.7 26.7 28.5 22.4 21.0 TOTAL PRIMARY GOVERNMENT $ 105.6 $ 105.0 $ 107.9 $ 109.0 $ 111.8 $ 114.6 $ 107.5 $ 106.3 Data Source Audited Financial Statements Data in millions -96- VILLAGE OF OAK BROOK,ILLINOIS CHANGE IN NET ASSETS Last Eight Fiscal Years Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 EXPENSES Governmental activities General government $ 4.2 $ 4.5 $ 4.3 $ 4.7 $ 5.3 $ 6.2 $ 5.3 $ 3.9 Public safety 10.2 10.1 11.3 12.0 12.3 12.6 11.9 13.2 Public works 3.0 3.7 4.6 4.1 4.3 3.2 11.9 4.4 Culture and recreation 1.6 1.7 1.7 1.9 1.8 2.0 1.7 1.7 Interest on long-term debt 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.4 Total governemntal activities expenses 19.2 20.2 22.0 22.8 23.8 24.1 30.9 23.6 Business-type activities Water 5.4 4.3 4.5 3.9 4.4 3.9 4.0 4.5 Sports Core 3.7 3.4 3.4 3.7 3.7 3.8 3.5 3.1 Total business-type activities expenses 9.1 7.7 7.9 7.6 9.1 7.7 7.5 7.6 TOTAL PRDvIPARY GOVERNMENT EXPENSES $ 28.3 $ 27.9 $ 29.9 $ 30.4 $ 31.9 $ 31.8 $ 38.4 $ 31.2 PROGRAM REVENUES Governmental activities Charges for services General government $ 0.9 $ 1.2 $ 1.1 $ 1.2 $ 1.7 $ 1.3 $ 1.1 $ 1.4 Public safety 0.8 0.8 0.8 0.8 0.9 0.8 0.8 1.1 Other activities 0.0 0.0 0.0 0.0 0.0 0.0 0.1 - Operating grants and contributions 0.2 0.4 2.8 0.3 0.5 0.4 0.3 0.3 Capital grants - - - - - - - 0.7 Total governmental activities program revenues 1.9 2.4 4.7 2.3 3.1 2.5 2.3 3.5 Business-type activities Charges for services Water 3.8 4.0 4.5 4.4 4.6 4.0 4.0 5.1 Sports Core 3.6 3.3 3.4 3.6 3.8 3.6 3.3 2.5 Total business-type activities program revenues 7.4 7.3 7.9 8.0 8.4 7.6 7.3 7.6 TOTAL PRIMARY GOVERNMENT PROGRAMS REVENUES $ 9.3 $ 9.7 $ 12.6 $ 10.3 $ 11.5 $ 10.1 $ 9.6 $ 11.1 NET REVENUE(EXPENSE) Govemmental activities $ (17.3) $ (17.8) $ (173) $ (20.5) $ (20.7) $ (21.6) $ (28.6) $ (20.1) Business-type activities (1.8) (0.4) 0.4 0.3 (0.1) (0.2) - TOTAL PRIMARY GOVERNMENT NET REVENUE(EXPENSE) $ (19.1) $ (18.2) $ (17.3) $ (20.1) $ (20.4) $ (21.7) $ (28.8) $ (20.1) VILLAGE OF OAK BROOK,ILLINOIS CHANGE IN NET ASSETS(Continued) Last Eight Fiscal Years Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS Governmental activities Taxes Sales and local use taxes $ $ - $ 13.0 $ 14.2 S 14.4 $ 16.1 $ 14.2 $ 16.1 Utility - - 4.3 3.8 4.2 4.5 4.9 4.7 Other - - 1.6 1.5 2.5 2.5 2.5 2.3 Investment earnings - 0.7 0.8 0.5 0.1 0.1 Miscellaneous - 0.2 0.2 0.3 - - Total governmental activities 18.9 20.4 22.1 23.9 21.7 23.2 Business-type activities Investment earnings 0 1 0.2 0.3 0.2 - - Miscellaneous 1.1 - 0.8 0.2 (0.1) Total business-type activities 1.2 0 2 1.1 0.4 (0.1) TOTAL PRIMARY GOVERNMENT $ $ - $ 20.1 $ 211.6 $ 23.2 $ 24.3 $ 2L7 $ 23.1 CHANGE IN NET ASSETS Governmental activities S $ $ L6 $ (0.1) $ 1.4 $ 23 $ (6.9) $ 3.1 Business-type activities (1.8) (0.4) 1.2 0.6 1.4 0.3 (0.2) (0.1) TOTAL PRIMARY GOVERNMENT CHANGE IN NET ASSETS $ (1.8) $ (0.4) $ 2.8 $ 0.5 $ 2.8 $ 2.6 $ (7.1) $ Data Source Audited Financial Statements Data in millions -98- VILLAGE OF OAK BROOK,ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 _ GENERAL FUND Reserved $ 2,915,147 $ 1,142,795 $ 1,290,284 $ 1,292,859 $ 1,291,561 Unreserved 14,367,995 10,479,787 9,802,818 9,949,121 11,651,504 Nonspendable - - - - - Restricted - - - - - Unassigned - - - - - TOTAL GENERAL FUND $ 17,283,142 $ 11,622,582 $ 11,093,102 $ 11,241,980 $ 12,943,065 INFRASTRUCTURE FUND — Unreserved $ 1,936,562 $ 2,027,275 $ 2,316,583 $ 2,996,267 $ 1,696,960 Nonspendable - - - - - Restricted - - - - - _ TOTAL INFRASTRUCTURE FUND $ 1,936,562 $ 2,027,275 $ 2,316,583 $ 2,996,267 $ 1,696,960 ALL OTHER GOVERNMENTAL FUNDS Restricted $ - $ - $ - $ - $ - Unreserved,reported in Special Revenue Funds 1,138,212 1,163,310 1,065,232 850,871 609,248 _ Capital Project Fund - - - - - TOTAL ALL OTHER GOVERNMENTAL FUNDS $ 1,138,212 $ 1,163,310 $ 1,065,232 $ 850,871 $ 609,248 Data Source Audited Financial Statements -99- L i 2006 2007 2008 2009 2010 l $ 1,292,073 $ 1,291,112 $ 1,291,975 $ 1,495,000 $ - 11,731,876 12,152,083 11,493,855 10,787,853 - - - - - 1,917,000 - - - - 11,708,050 $ 13,023,949 $ 13,443,195 $ 12,785,830 $ 12,282,853 $ 13,625,050 $ 1,919,422 $ 2,110,918 $ 4,792,595 $ 4,682,620 $ - - - - - 337,699 - - - - 5,004,945 $ 1,919,422 S 2.110,918 S 4,792,595 $ 4,682,620 S 5.342.644 $ - $ - $ - $ - $ 3,672,971 780,902 1,365,470 2,225,973 2,986,576 - 15,156 17,407 136,330 225,075 - S 796,058 S 1382,877 S 2,362,303 $ 3,211,651 $ 31672,971 - 100- VILLAGE OF OAK BROOK,ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS ` Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 r REVENUES Sales tax revenue $ 9,307,134 $ 9,982,742 $ 9,749,858 $ 10,529,690 $ 10,497,102 Non-home rule sales tax - - - 1,304,467 2,422,549 Other intergovernmental 1,357,908 2,032,368 1,193,908 1,321,112 1,513,492 Utility taxes 3,351,774 4,422,058 4,500,108 4,298,744 4,268,283 Hotel/motel taxes 308,101 297,911 306,365 323,325 349,615 Licenses and permits 324,131 468,403 570,261 741,528 669,726 ... Charges for services 374,409 560,204 703,634 745,027 791,638 Fines and penalties 300,311 311,750 353,513 401,616 334,869 Investment income 1,135,564 486,149 158,482 104,869 286,859 Donations 400,000 25,000 410,000 - 15,000 Miscellaneous 97,185 100,766 228,477 176,630 166,340 Total revenues 16,956,517 18,687,351 18,174,606 19,947,008 21,315,473 .•r EXPENDITURES General goverment 4,054,334 4,391,793 4,811,984 4,769,485 4,070,435 Public safety 8,976,293 9,269,396 9,537,454 9,590,916 11,158,837 Public works 1,558,922 1,772,431 1,906,948 2,023,984 2,954,815 Culture and recreation 1,245,024 1,603,019 1,554,606 1,563,457 1,594,661 Capital outlay 9,378,189 6,999,580 1,139,208 1,009,984 1,001,532 ... Debt service Principal - - - - - Interest and issuance costs - - - - - Total expenditures 25,212,762 24,036,219 18,950,200 18,957,826 20,780,280 EXCESS(DEFICIENCY)OF REVENUES _ OVER EXPENDIUTRES (8,256,245) (5,348,868) (775,594) 989,182 535,193 OTHER FINANCING SOURCES(USES) Transfers in 843,420 535,307 200,000 - - Transfers(out) (252,990) (396,707) - - - Debt issuance 3,968,310 - - - - Debt issuance premium - - - - - Payment to refund bond escrow agent - - - s Sale of capital assets 398,937 39,000 - Total other financing sources(uses) 4,957,677 177,600 200,000 - - _ NET CHANGE IN FUND BALANCES S (3.298,568) S (5,171,268) S (5751,594) S 989,182 S 535,193 DEBT SERVICES AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 0.00% 0.00% 0.00% 0.00% 0.00% Data Source Audited Financial Statements - 101 - 2006 2007 2008 2009 2010 " $ 11,461,184 $ 11,396,397 $ 10,873,975 $ 9,748,649 $ 11,121,649 2,641,030 2,618,565 4,874,978 4,410,438 4,833,425 1,535,507 1,711,638 1,893,862 1,771,733 2,545,066 3,822,020 4,247,675 4,520,563 4,922,115 4,669,414 416,507 1,262,808 1,137,614 882,649 881,887 858,401 850,965 720,847 741,380 843,139 835,390 832,008 839,504 695,630 943,638 292,331 375,717 345,937 313,395 229,246 562,590 682,728 431,753 80,345 110,837 25,311 45,150 - - - 190,225 281,864 391,106 403,580 532,891 22,640,496 24,305,515 26,030,139 23,969,914 26,711,192 5,052,804 5,529,429 5,846,600 4,932,449 3,522,790 12,047,821 12,156,303 12,280,965 11,496,681 12,536,938 2,338,619 2,460,937 2,394,176 10,458,211 4,036,771 1,855,514 1,746,352 2,011,660 1,596,440 1,536,853 855,582 1,214,933 493,000 994,776 382,039 - - - 1,706,163 1,769,263 - - - 95,415 462,997 22,150,340 23,107,954 23,026,401 31,280,135 24,247,651 490,156 1,197,561 3,003,738 (7,310,221) 2,463,541 9,788,606 - 8,861 - - - - (2,250,850) - 7,546,617 - $ 490,156 $ 1,197,561 8 3,003,738 $ 236,396 S 2,463,541 0.00% 0.00% 0.00% 5.81% 9.42% - 102- VILLAGE OF OAK BROOK,ILLINOIS ASSESSED AND ESTIMATED 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 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% 2007 1,089,808 598,096 - - 1,687,904 - 5,063,712 33.333% 2008 1,179,126 607,923 - 1,787,049 - 5,361,147 33.333% 2009 1,176,749 562,531 - 1,739,280 - 5,217,840 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. - 103- VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Tax Rates Village of Oak Brook $ - $ - $ - $ - Basic Town 0.5379 0.5072 0.4685 0.4375 0.4120 0.3961 0.3878 0.3662 0.3567 0.3579 Junior College 9502 0.1966 0.1930 0.2179 0.2097 0.1972 0.1874 0.1929 0.1888 0.1858 0.2127 Grade School#53 0.9689 0.9476 0.8877 0.8984 0.8527 0.8530 0.8319 0.8060 0.7936 0.8159 High School#86 1.4367 1.4250 1.3858 1.3094 1.2310 1.1910 1.1418 1.0943 1.0804 1.0948 Oak Brook Park District 0.1674 0.1538 0.1667 0.1666 0.1589 0.1621 0.1583 0.1530 0.1504 0.1555 TOTAL TAX RATES $ 3.3075 $ 3.2266 $ 3.1266 $ 3.0216 $ 2.8518 $ 2.7896 $ 2.7127 $ 2.6083 $ 2.5669 $ 2.6368 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 - 104 - VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL REVENUE TAXPAYERS Current Year and Ten Years Ago 2010 2000 Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Costco Wholesale _ Costco Wholesale Crate&Barrel Crate&Barrel Nextel Systems Corporation Lord&Taylor LLC International Business Machines r Macy's Lord&Taylor Neiman Marcus Marshall Fields Nordstrom,Inc. Marshall Fields Home Store Nordstrom Rack Neiman Marcus Sears Roebuck&Co. Nordstrom,Inc. Tiffany& Co. Sears Roebuck& Co. TOP TEN TOTAL N/A TOP TEN TOTAL $ 4,783,104 TOTAL SALES TAX REVENUE $ 10,457,375 TOTAL SALES TAX REVENUE $ 10,591,635 TOP TEN AS A PERCENT OF TOP TEN AS A PERCENT OF SALES TAX REVENUE N/A SALES TAX REVENUE 45.16% 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. - 105 - VILLAGE OF OAK BROOK,ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal 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 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% 2008 1.00% 5.00010 0.25% 0.25% 0.75% 0.50% 7.75% 2009 1.00% 5.00% 0.25% 0.25% 0.75% 0.50% 7.75% 2010 1.00% 5.00% 0.25% 0.25% 0.75% 0.50% 7.75% Data Source Village and County Records -106- VILLAGE OF OAK BROOK,ILLINOIS RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Govermental Business-Type _ Activities Activities Ratio of Total Total Total Fiscal Installment Installment Total Outstanding Debt Outstanding Outstanding Year Notes Notes Capital Primary To Equalized Debt Per Debt Per Ended Payable Payable Leases Government Assessed Valuation* Personal Income Capita* — 2001 $ 3,810,000 $ 1,710,000 $ 73,880 $ 5,593,880 0.51% 3295.99% $ 642.83 2002 3,615,000 1,485,000 38,136 5,138,136 0.43% 3027.45% 590.45 2003 3,410,000 1,360,000 - 4,770,000 0.37% 2810.54% 548.15 2004 3,195,000 1,205,000 - 4,400,000 0.33% 2592.54% 505.63 2005 2,970,000 1,045,000 120,643 4,135,643 0.29% 2436.77% 475.25 2006 2,735,000 885,000 82,378 3,702,378 0.25% 2181.49% 425.46 2007 2,485,000 720,000 42,195 3,247,195 0.21% 1913.29% 373.16 2008 2,225,000 525,000 - 2,750,000 0.16% 1620.33% 316.02 2009 12,332,443 325,000 - 12,657,443 0.71% 7457.93% 1,454.54 2010 10,563,180 731,511 - 11,294,691 0.65% 6654.98% 1,297.94 Note:Details of the Village's outstanding debt can be found in the notes to financial statements. * See the schedule of Demographic and Economic Information on page 110 for personal income and population data. - 107- VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2010 (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 234,775,000 22.82% 53,575,655 DuPage Forest Preserve 214,683,724 20.87% 44,804,493 DuPage Water Commission 12,465,000 1.21% 150,827 Park Districts 890,000 0.09% 801 Elementary School Districts 81,355,545 7.91% 6,435,224 High School Districts 189,671,294 18.44% 34,975,387 Junior College 502 217,765,000 21.17% 46,100,851 Unit District 205 77,163,936 7.50% 5,787,295 TOTAL $ 1,028,769,499 $ 191,830,533 * Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village. ** 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 - 108 - VILLAGE OF OAK BROOK,ILLINOIS LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Legal debt limit $ 94,915,374 $ 101,902,766 $ 111,590,582 $ 114,462,334 $ 122,938,821 $ 127,816,578 $ 136,066,752 $ 145,581,763 $ 154,132,970 $ 150,013,021 r Total net debt applicable to limit 5,520,000 5,100,000 4,770,000 4,400,000 4,015,000 3,620,000 3,205,000 2,750,000 2,400,000 2,055,000 k Legal debt margin 89,395,374 96,802,766 106,820,582 110,062,334 118,923,821 124,196,578 132,921,063 142,831,763 151,732,970 147,958,021 Total net debt applicable to the limit as a percentage of debt limit 5.82% 5.00% 4.27% 3.84% 3.27% 2.83% 2.35% 1.89% 1.56% 1.37% i Legal Debt Margin Calculation for Fiscal 2010 l Assessed Value $ 1,739,281,404 Legal debt margin 8.625% Debt limit 150,013,021 Debt applicable to limit General obligation bonds 2,055,000 Legal debt margin $ 147,958,021 tno* 1 VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years DuPage County Fiscal Personal Unemployment Year Population Income Rate 2001 8,702 (E) $ 169,718 3.8% _ 2002 8,702 (E) 169,718 5.4% 2003 8,702 (E) 169,718 5.8% 2004 8,702 (E) 169,718 4.7% 2005 8,702 (E) 169,718 4.7% 2006 8,702 (E) 169,718 3.6% 2007 8,702 (E) 169,718 3.8% -- 2008 8,702 (E) 169,718 8.6% 2009 8,702 (E) 169,718 8.4% 2010 8,702 (E) 169,718 8.3% (A) Actual (E) Estimate Note: Latest information available Data Source U.S. Bureau of Labor Statistics - 110 - VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Four Years Ago 2010 2006 Percentage of Total Percentage of Employer Rank Employees Village Population Rank Employees Village Population Oak Brook Center Mall 1 3,150 36.2% 1 3,500 40.2% McDonald's Corporation 2 3,000 34.5% 2 2,800 32.2% Advocate Healthcare 3 1,980 22.8% 4 580 6.7% Inland Real Estate Group of Corllpanies 4 800 9.2% Ace Hardware Corporation 5 780 9.0% 3 1,000 11.5% ADT Security Services, Inc. 6 350 4.0% Follet Higher Education Group 7 338 3.9% Lions Club International 8 285 3.3% Sanford Corporation 9 271 3.1% Reed Elsevier 10 230 2.6% Safeway, Inc. 5 400 4.6% Data Source Reference USA; Hoover's; Illinois Services Directory; Illinois Manufacturing Directory; Selective Telephone Survey Information prior to 2006 was unavailable. VILLAGE OF OAK BROOK, ILLINOIS RETAIL SALES VOLUME - TOP 25 ILLINOIS COMMUNITIES State Collection Period January 1, 2010 Through December 31, 2010 -- (1) Estimated Sales 2000 Municipality Rank Sales Per Capita Population Chicago 1 $ 21,547,706,000 $ 7,440 2,896,016 Schaumburg 2 2,634,698,000 34,949 75,386 Naperville 3 2,632,224,000 20,507 128,358 Springfield 4 2,528,976,000 22,691 111,454 Rockford 5 2,116,830,000 77,001 27,491 Kankakee 6 1,963,644,000 13,081 150,1.15 Peoria 7 1,891,834,000 16,751 112,936 -- Aurora 8 1,863,106,000 13,030 142,990 Joliet 9 1,791,202,000 16,863 106,221 Orland Park 10 1,706,449,000 33,409 51,077 -" Champaign 11 1,468,306,000 21,747 67,518 Niles 12 1,323,005,000 44,000 30,068 Bloomington 13 1,258,651,000 19,421 64,808 Glenview 14 1,229,927,000 29,391 41,847 Skokie 15 1,205,484,000 19,030 63,348 Sycamore 16 1,117,533,000 22,936 48,724 Gurnee 17 1,114,019,000 38,636 28,834 Decatur 18 1,111,092,000 13,573 81,860 Downers Grove 19 1,084,615,000 90,234 12,020 Vernon Hills 20 1,070,342,000 53,198 20,120 Oak Brook 21 1,061,261,000 121,956 8,702 Tinley Park 22 1,039,417,000 24,560 42,322 Arlington Heights 23 1,001,878,000 13,177 76,031 Lombard 24 1,001,503,000 20,692 48,401 Crystal Lake 25 944,273,000 24,849 38,000 Data Source Illinois Department of Revenue - Local Tax Allocation Division and the U.S. Census Bureau. (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 February 1, 2010 through January 31, 2011. - 112 - 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 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% 2008 11,066,103 -2.4% 4,272,671 63.8% 15,338,774 10.0% 2009 10,024,077 -9.4% 4,447,786 4.1% 14,471,863 -5.7% 2010 10,457,375 4.3% 4,703,153 5.7% 15,160,528 4.8% Data Source Village Records Note: The Village's non-home rule sales tax was effective beginning July 1,2004. - 113- VILLAGE OF OAK BROOK, ILLINOIS STATE SALES TAX RECEIPTS BY MONTH - CASH BASIS Last Three Fiscal Years Percentage Change Fiscal Year Fiscal Year From Preceding Year Month Ended 12/31/09 Ended 12/31/10 FY 2008 FY 2009 FY 2010 January $ 768,433 $ 819,895 6.3% -13.9% 6.7% _ February 1,074,630 876,670 0.3% 9.7% -18.4% March 1,320,915 1,371,070 -5.9% -15.6% 3.8% April 729,721 645,058 -5.7% 1.6% -11.6% May 626,143 640,940 7.5% -9.9% 2.4% June 755,489 838,005 -17.3% -0.8% 10.9% July 707,991 799,994 9.6% -26.7% 13.0% August 771,849 858,726 -0.4% -12.0% 11.3% September 810,220 841,099 -7.1% -9.0% 3.8% October 818,439 930,821 -3.6% -6.5% 13.7% November 842,402 951,035 2.9% -15.2% 12.9% December 797,845 884,062 -9.4% -6.3% 10.8% TOTAL $ 10,024,077 $ 10,457,375 -2.4% -9.4% 4.3% Data Source Village Records - 114 - 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 12/31/08 Ended 12/31/09 Ended 12/31/10 FY 2008 FY 2009 FY 2010 January $ 200,027 $ 353,215 $ 374,350 0.7% 76.6% 6.0% February 235,369 399,363 400,954 3.8% 69.7% 0.4% March 369,775 618,299 639,925 -5.8% 67.2% 3.5% April 321,130 325,062 284,621 85.1% 1.2% -12.4% May 314,195 280,205 284,830 115.3% -10.8% 1.7% June 371,023 341,693 382,620 76.8% -7.9% 12.0% '- July 423,126 318,052 363,571 112.1% -24.8% 14.3% August 403,229 349,890 380,669 100.1% -13.2% 8.8% September 421,233 365,985 391,573 89.6% -13.1% 7.0% October 399,889 377,370 402,645 92.0% -5.6% 6.7% November 422,955 356,653 402,127 100.2% -15.7% 12.8% December 390,722 361,999 395,269 78.8% -7.4% 9.2% TOTAL $ 4,272,673 $ 4,447,786 $ 4,703,154 63.8% 4.1% 5.7% Data Source Village Records Note: The Village's non-home rule sales tax was effective July 1,2004 with collections beginning in October 2004. _ - 115 - VILLAGE OF OAK BROOK,ILLINOIS SALES TAX BY CATEGORY Last Ten Fiscal Years Fiscal Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General merchandise $ 2,863,474 $ 2,727,372 $ 2,752,128 $ 2,979,121 $ 2,243,966 $ 3,031,452 $ 2,384,953 $ 2,064,241 $ 1,864,664 $ 1,988,286 Food 55,395 50,868 51,362 40,239 41,125 46,714 56,332 54,585 68,576 49,666 Drinking and eating places 938,849 956,286 968,701 1,075,685 1,105,997 1,181,813 1,266,893 1,248,272 1,270,903 1,388,881 Apparel 2,524,261 2,551,474 2,619,437 2,683,775 2,813,176 3,051,925 3,075,294 2,876,511 2,711,321 2,987,468 Furniture,H.H.and radio 632,564 577,992 824,925 917,782 945,017 961,241 1,080,877 1,076,836 840,999 957,980 Lumber,building and hardware 82,726 91,162 120,341 113,660 105,873 104,720 85,382 39,312 32,472 17,588 Automotive and filling stations 538,037 947,990 1,013,497 1,211,391 1,333,253 1,465,864 1,544,153 1,708,234 1,568,808 1,623,980 Drugs and other retail 1,150,466 1,445,340 1,107,775 1,156,873 1,179,604 1,285,354 1,240,805 1,141,709 1,046,055 1,265,890 Agriculture and all others 671,440 423,268 300,850 304,287 397,129 451,957 491,738 507,663 414,462 354,622 Manufacturers 53,079 96,147 50,297 75,179 77,311 68,531 72,399 72,003 100,642 83,952 TOTAL $ 9,510,292 $ 9,867,899 $ 9,809,312 $ 10,557,992 $ 10,242,451 $ 11,649,570 $ 11,299,926 $ 10,789,366 $ 9,918,902 $ 10,718,314 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% Data 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. VILLAGE OF OAK BROOK,ILLINOIS NON-HOME RULE SALES TAX BY CATEGORY Last Ten Fiscal Years Fiscal Years 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General merchandise $ - $ - $ - $ 382,923 $ 556,016 $ 743,530 $ 590,403 $ 1,024,873 $ 926,187 $ 973,309 Food - - - 2,007 4,444 5,150 8,577 19,275 20,652 19,332 Drinking and eating places - - - 142,641 275,357 294,331 315,085 615,357 632,360 692,224 Apparel - - - 373,434 702,672 762,294 768,375 1,433,462 1,353,324 1,492,720 Furniture,H.H.and radio - - - 126,581 231,825 240,036 269,738 534,252 419,064 478,065 Lumber,building and hardware - - - 14,797 26,448 26,171 21,290 19,735 16,233 8,807 Automotive and filling stations - - - 96,769 183,613 204,893 207,328 410,617 419,622 438,722 Drugs and other retail - - - 147,168 260,634 278,768 275,639 501,254 455,080 496,243 Agriculture and all others - - - 36,238 83,805 108,407 108,766 224,370 191,955 160,284 Manufacturers - - - 10,196 19,327 17,079 18,064 35,964 50,271 41,947 TOTAL $ - $ - $ - $ 1,332,753 $ 2,344,141 $ 2,680,659 $ 2,583,267 $ 4,819 159 $ 4,484,747 $ 4,801,654 Village non-home rule sales tax rate - - - 0.25% 0.25% 0.25% 0.25% 0.50% 0.50% 0.50% Data 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 I and March 31 as reported by the State. The Village's Non-Home rule sales tax was effective July 1,2004. The Village's Non-Home rule sales tax increased from.25%to.50%effective January 1,2008. -117- (This page is intentionally left blank.) VILLAGE OF OAK BROOK,ILLINOIS BUDGETED FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GENERAL GOVERNMENT Board of Trustees 0.50 0.50 0.50 0.50 0.50 1.00 1.00 0.50 0.50 0.50 Village Clerk 2.50 2.50 2.50 2.50 2.75 2.75 3.25 3.25 3.25 1.50 Legal 1.00 1.00 1.00 0.25 0.25 0.25 0.25 0.25 0.25 0.25 General Management 3.25 3.25 3.25 3.50 3.50 3.25 3.25 2.50 2.50 2.25 Human Resources 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.75 Risk Management 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 General Services 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 2.00 Business Licenses - - - - - 0.25 0.25 0.00 0.00 0.00 Purchasing 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 0.00 0.50 Information Services 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.00 2.25 FINANCIAL SERVICES Financial Services Management 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Accounting and Reporting 5.00 5.00 4.50 4.50 4.50 4.50 4.50 4.50 5.00 3.00 PUBLIC WORKS Buildings and Grounds 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Garage Operations 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Water Operations 6.00 6.00 7.00 7.00 7.50 7.50 7.50 7.50 7.50 6.50 Public Works Management 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.50 Streets-General Salaries 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 ENGINERRING AND CAPITAL PROJECTS Engineering 5.00 .4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 3.50 LIBRARY Library General Operations 5.75 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 4.00 Technical Services 2.25 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 3.00 Reference and User Services 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 1.75 Youth Services 1.75 2.75 2.75 2.75 2.75 2.75 2.75 2.75 2.75 1.50 POLICE Police Services Management 4.00 4.00 4.00 4.00 3.00 3.00 3.00 3.00 3.00 3.00 Police Field Services 36.00 36.00 33.00 35.00 37.00 35.00 35.00 36.25 35.25 31.50 Police General Support 2.00 2.00 2.00 2.00 2.00 2.50 3.00 3.50 3.50 3.00 Police Investigations 8.00 8.00 8.00 6.00 6.00 6.00 7.00 7.00 6.00 8.00 Village Communications Center 10.00 10.00 10.00 10.00 10.00 11.00 12.00 12.50 12.00 9.00 Police Records 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.50 Police Public Relations/Crime Prevention 2.00 2.00 2.00 2.00 1.00 2.00 0.00 0.00 0.00 0.00 - 118- 1 I 1 I 1 1 1 1 I I 1 1 1 1 I I M r r r r r r r r t I t N i I i I I I VILLAGE OF OAK BROOK,ILLINOIS BUDGETED FULL-TIME EQUIVALENT EMPLOYEES(Continued) Last Ten Fiscal Years Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 FIRE Fire and EMS-General Salaries** 36.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 31.00 Rescue and Fire Service Management 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.50 1.50 Fire Prevention and Public Safety Education 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 0.00 0.00 SPORTS CORE Sports Core General Operations 3.25 3.25 3.25 3.25 2.75 2.75 2.75 2.75 2.25 1.75 Sports Core Food and Beverage Operations 2.00 2.00 2.00 2.00 1.50 2.00 2.50 2.50 2.75 0.00 Golf Club Food and Beverage Operations - - - - - - - - 0.25 0.50 Golf Club General Operations 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 2.75 Golf Course Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 COMMUNITY DEVELOPMENT Community Development Management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Code Enforcement 3.00 3.00 3.00 3.00 3.00 3.00 4.00 4.00 3.50 3.50 TOTAL 181.75 180.25 176.75 176.25 176.00 177.50 180.00 180.75 174.25 152.25 *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. Data Source I Village Records _ 119- VILLAGE OF OAK BROOK,ILLINOIS OPERATING INDICATORS Last Ten Fiscal Years Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PUBLIC SAFETY Police Physical arrests 341 356 313 364 357 330 319 293 399 357 Parking violations 2,496 1,908 2,376 1,345 1,112 579 1,472 1,420 1,113 877 Traffic violations 6,036 5,354 5,235 4,649 4,180 3,984 4,240 3,371 3,464 5,370 Fire EMS Incidents 1,073 1,022 1,049 1,016 1,059 1,138 1,093 1,037 1,069 1,188 Fire Incidents 1,675 743 747 1,075 949 716 823 752 802 918 Communications Center Police calls dispatched 9,823 9,507 9,597 10,142 11,766 10,864 10,880 10,667 9,911 9,666 Fire/EMS calls dispatched 1,944 1,765 2,224 2,091 2,148 2,013 2,250 2,214 2,176 2,240 WATER New water meters installed 41 46 39 38 47 31 31 21 10 10 Water main breaks repaired 50 70 78 71 110 63 109 58 63 59 Water pumped(mil.gals.) 1,417 1,608 1,513 1,375 1,530 1,261 1,336 1,210 1,105 1,136 LIBRARY Total circulation 63,000 73,725 92,066 96,024 98,754 96,414 99,009 96,631 90,287 87,906 Avg.daily circulation 185.8 236.3 270.8 280.8 289.6 286.1 292.1 282.5 267.9 260.5 Total holdings 56,189 61,108 83,115 89,292 96,721 103,951 106,181 105,493 111,051 116,386 COMMUNITY DEVELOPMENT Building permits issues 742 819 757 891 903 947 856 742 606 696 Inspections n/a n/a n/a n/a 1,129 2,268 1,754 1,772 2,090 2,193 Estimated construction value $66,309,097 $40,587,413 $57,455,832 $78,447,306 $ 73,549,628 $ 76,294,249 $ 81,953,372 $46,663,489 $ 51,776,407 $ 51,559,533 SPORTS CORE B&T recreation membership 262 245 344 343 311 302 291 303 259 300 Social memberships 98 148 88 189 122 106 120 129 80 64 Total events 316 313 306 252 215 224 226 202 123 39 Golf memberships 296 283 267 263 260 262 235 226 219 207 Total golf rounds 48,231 44,134 45,637 44,422 44,005 42,324 43,561 40,336 39,686 37,750 Data Source Various village departments n/a-Information was unavailable for this given period. -120- I 1 1 I I I I I 1 1 1 1 1 1 1 I I I 1 I ( I 1 I 1 ( 1 t 1 ( 1 I 1 1 ( I VILLAGE OF OAK BROOK,ILLINOIS CAPITAL ASSETS STATISTICS Last Ten Fiscal Years Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 I 1 1 Area patrols 5 5 5 5 5 5 5 5 5 4 Patrol units 15 15 15 15 15 15 15 15 15 12 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 8.5 8.5 8.5 Residential streets(miles 55 55 48 48 49 49 49 49 49 49 Streetlights 565 565 565 565 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 11 11 11 11 WATER Water mains(miles) 115 115 115 115 115 115 115 105 105 105 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 - 121 -