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CAFR (Year Ended December 31, 2017)VILLAGE OF OAK BROOK COMPREHENSIVE AN NUAL FINANCIAL REPORT For the Year Ended December 31, 2017 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE VILLAGE OF OAK BROOK, ILLINOIS As of and for the Year Ended December 31, 2017 Prepared by the Finance Department Jason Paprocki Finance Director VILLAGE OF OAK BROOK TABLE OF CONTENTS As of and for the Year Ended December 31, 2017 Page(s) INTRODUCTORY SECTION Letter of Transmittal i - vi Certificate of Achievement for Excellence in Financial Reporting vii Organization Chart viii Principal Officials ix FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 - 3 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis 4 - 16 BASIC FINANCIAL STATEMENTS Government-W ide Financial Statements Statement of Net Position 17 Statement of Activities 18 - 19 Fund Financial Statements Balance Sheet - Governmental Funds 20 - 21 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23 - 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Net Position - Proprietary Funds 26 - 29 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 30 - 31 Statement of Cash Flows - Proprietary Funds 32 - 35 Statement of Fiduciary Net Position - Fiduciary Funds 36 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 37 Index to Notes to Financial Statements 38 Notes to Financial Statements 39 - 84 REQUIRED SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 85 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2017 REQUIRED SUPPLEMENTARY INFORMATION (cont.) Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Hotel/Motel Tax Fund 86 Historical Pension and Other Postemployment Benefit Plan Information Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 87 Illinois Municipal Retirement Fund - Schedule of Employer Contributions 88 Police Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 89 Police Pension Fund - Schedule of Employer Contributions 90 - 91 Police Pension Fund - Schedule of Investment Returns 92 Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 93 Firefighters' Pension Fund - Schedule of Employer Contributions 94 - 95 Firefighters' Pension Fund - Schedule of Investment Returns 96 Other Postemployment Benefit Plan - Schedule of Employer Contributions and Schedule of Funding Progress 97 Notes to Required Supplementary Information 98 SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues - Budget and Actual - General Fund 99 Schedule of Expenditures - Budget and Actual - General Fund 100 - 104 Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds 105 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 106 Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 107 Infrastructure Fund - Major Capital Projects Fund 108 - 111 Promenade TIF Fund - Major Capital Projects Fund 112 Proprietary Funds Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 113 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2017 SUPPLEMENTARY INFORMATION (cont.) Schedule of Operating Expenses - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 114 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Sports Core Fund - Major Enterprise Fund 115 Schedule of Operating Revenues - Budget and Actual - Sports Core Fund - Major Enterprise Fund 116 Schedule of Operating Expenses - Budget and Actual - Sports Core Fund - Major Enterprise Fund 117 - 119 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Golf Surcharge Fund - Nonmajor Enterprise Fund 120 Internal Service Funds Combining Statement of Net Position - Internal Services Funds 121 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 122 Combining Statement of Cash Flows - Internal Service Funds 123 - 124 Statement of Revenues, Expenses and Changes in Net Position - Budget and Actual Self-Insurance Fund - Internal Service Fund 125 Garage Fund - Internal Service Fund 126 Capital Replacement Fund - Internal Service Fund 127 Fiduciary Funds Combining Statement of Fiduciary Net Position - Pension Trust Funds 128 Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 129 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 130 - 131 Changes in Net Position - Last Ten Fiscal Years 132 - 135 Fund Balances of Governmental Funds - Last Ten Fiscal Years 136 - 137 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 138 - 139 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 140 - 141 Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 142 - 143 Principal Revenue Taxpayers - Current and Nine Years Ago 144 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 145 - 146 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 147 - 148 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2017 STATISTICAL SECTION (cont.) Schedule of Direct and Overlapping Bonded Debt 149 Legal Debt Margin Information - Last Ten Fiscal Years 150 - 151 Demographic and Economic Information - Last Ten Fiscal Years 152 Principal Employers - Current and Nine Years Ago 153 Retail Sales Volume - Top 25 Illinois Communities 154 Sales Tax Receipts - Cash Basis - Last Ten Fiscal Years 155 State Sales Tax Receipts by Month - Cash Basis - Last Five Fiscal Years 156 - 157 Non-Home Rule Sales Tax Receipts by Month - Cash Basis - Last Ten Fiscal Years 158 - 159 Sales Tax by Category - Last Ten Fiscal Years 160 - 161 Non-Home Rule Sales Tax by Category - Last Ten Fiscal Years 162 - 163 Budgeted Full-Time Equivalent Employees - Last Ten Fiscal Years 164 - 165 Operating Indicators - Last Ten Fiscal Years 166 - 167 Capital Assets Statistics - Last Ten Fiscal Years 168 - 169 Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 -2255 Website www .oak-b rook.org A dmin is tration 630.368.5000 FAX 630.368 .504S Develop men t Services 630 .368.510 I FAX 630.368.5128 Fi re Depar tm en t 630.368.5200 FAX 630.368.5251 Po li ce Department 630.368.8700 FAX 630.368.8739 Public Works De part ment 630.368.5270 FAX 630.368.529S Oak Bro ok Public Library 600 Oak Brook Road Oak Brook, IL 60523-2200 630.368 .7700 FAX 630.368. 7704 Oak Brook S p orts Core Bath & T ennis C lu b 700 Oak Brook Road Oak Brook. IL 60523-4600 630.368.6420 FAX 630.368.6439 Golf C lu b 2606 York Road Oak Brook, IL 60523-4602 630.368.6400 FAX 630.368.6419 May 2 , 2018 Honorable Gopal Lalmalani , Village President Board of Trustees Citizens of the Village of Oak Brook, Illinois: Illinois state statute requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with United States Generally Accepted Accounting Principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of independent licensed certified public accountants. This repo11 is published to fu lfi ll that requirement for the year ended December 31 , 2017. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures , rest with the management of the Village. We believe to the best of our knowledge, as presented, the data is accurate in all material respects and presented in a manner designed to fair ly set forth the financial position and results of the operations. Management of the Vi ll age is responsible for establishing and maintaining internal controls designed to ensure that the assets of the Village are protected from loss , theft or misuse and to ensure that sufficient, reliable , adequate accounting data is compiled fo r the preparation of financial statements in conformity with GAAP. Internal accounting controls have been designed to provide reasonable rather than absolute assurance that the financials statements will be free from material misstatement. We believe that the Village's internal controls adequately safeguard assets and provide reasonable assurance of properly recorded financ ial transactions. In addition , the Village maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual budget approved by the Village Board. All disbursements receive approval from the Board of Trustees. The Village also maintains an encumbrance system that is used as an extension of forma l budgetary integration. The Village's financial statements have been audited by Baker Tilly Virchow Krause LLP, a firm of licensed certified public accountants. The independent audit is to provide reasonable assurance that the financial statements of the Village of Oak Brook are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing accounting principles used and significant estimates made by management; and the evaluation of the overall financial statement presentation. Based upon the audit for the year ending December 31 , 2017, the independent audito rs concluded , that there was a reasonable basis for rendering an unmodified opinion on the Village 's financial statements. The independent auditors ' report is presented as the first component of the financial section of this report. Management 's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a nanative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction w ith it. Profile of the Village of Oak Brook The Village of Oak Brook is located approximately 15 mi !es west of the Chicago Loop , near the geographic center of the seven-county Chicago metropolitan area. Excellent transportation links are provided to all parts of the greater metropolitan area by a network of tollways and federal and state highways which pass through or near the Vill age. The Tri -State Tollway (1-294), running along the Village 's eastern boundary, provides rapid access to the northern and southern suburbs, and into Wisconsin and Indiana. The East- West Tollway (I-88), passing tlu·ough the Village's northern sector, joins the Eisenhower Expressway to the northeast, providing direct access to Chicago's Loop. Additional links include east-west arteries Illinois Route 38 and U.S . Route 34, which pass, respectively, to the north and south of the Village , and Illinois Route 83 , which bisects the community in a north-south direction. The Oak Brook area is bounded on the north by the communities of Lombard, Vi ll a Park, E lmhurst and Oak Brook Terrace and on the south by Downers Grove , Westmont , Clarendon Hill s and Hinsdale. The Village of Oak Brook operates under the Village form of government with an elected Vil lage 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 (po lice and fire), public works, road maintenance, community development and recreation faci li ties and a free public library. For additional information concerning the Village, please visit our website at wwvv.oak- brook.org. 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 large corporations have facilities in the Village, including the corporate headquarters of TreeHouse Foods , Hub Group, and Ace Hardware. As a retail center , Oak Brook offers upscale shopping , fine restaurants , and Oakbrook Center, one of the leading outdoor shopping centers in the United States. Oak 11 Brook is comprised of 41 ,766 jobs (2017 , IDES , Where Workers Work); of them , 17.8% are in the Administrative and Support field, Waste Management, and Remedial services, 14.7% are in the Management of Companies and Enterprises field , and 11.3% are in the health care and social assistance field. These factors, as well as the performance of the Illinois economy over time, have enabled the Village to operate without a real estate tax since inception due to the sales taxes generated from retail business activities. Overall , the Vi ll age has seen many revenue sources show signs of improvement compared to levels seen during the economic crisis in 2009. With sales taxes being the largest source of General Fund revenue , the local and national economy has a significant effect on the amount of revenue the Village receives. Sales tax collections decreased $587,90 I , or 4.5% compared to last year's co ll ections. The decrease was primarily due to significant non-routine collections the Village experienced during 2016 from a large taxpayer. Overall, sales tax revenue has increased nearly $2.5 million since 2009. Oak Brook's estimated construction va lue indicates a positive trend between the years of 2013 through 2017 , with the high corning in 2017 at $176.5 million. Total construction value in 2017 increased $76.5 m illion compared to 2016 due to many large projects , such as Christ Church and Midwest Orthopedics at Rush. Total building permits issued during 2017 came in at 943 , which is an increase of 102 compared to 2016 permits. Overall, development has been strong over the past five years and is expected to remain strong tlu·ough 2018 and beyond. New Commercial Development There have been many changes and improvements in Oakbrook Center. Hyatt House hotel opened for business in fall 2017. Michael Jordan's restaurant opened during summer 2017. Roka Akor and Rock Sugar opened for business in winter 2017. Carvana is cuITently constructing a vehicle distribution site and is expected to be operational by fall 2018. The former Sears building is currently under redeve lopment with new businesses moving in over the next year, including L.L. Bean and KidZania. Rush University Medical Center and Midwest Orthopedics broke ground in early 2017 on a 100,000 square-foot professional building. The total cost of the building is expected to be $65 million, with a completion date of spring 2019. Hub Group plans to expand its corporate headquarters with construction expected to begin in late 2018 or early 2019. Long-term Financial Planning The Village uses a number of processes to accomp li sh 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. Ill Roadway Maintenance Plan -this plan is based on the Village's pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated annually, includes a long-range schedule of roadway maintenance activities as well as cost projections over the next ten-year period in order to plan for the orderly maintenance of the Village's roadway system. Five-Year Financial Plan -this document is prepared annually in order to provide the Village Board and the community with a five-year projection of the financial condition of each of the twelve funds that comprise the Village's financial structure. This document is not as precise as the annual budget but it does project both revenues and expenditures for each of the next five years that can assist in identifying positive and negative trends. Annual Budget -using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers (called "programs") and sets the spending plan for the coming year. The foundation of all of the Village 's financial planning is centered on the Village Board's well-pub lici zed 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 establi shed 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. Major Initiatives Providing safe , efficient, and well maintained infrastructure continues to be a major goal for the Village. The Village has accomplished many things during 2017 to help realize th is goal. 1n 2017, electrical system upgrades were performed at the Municipal Complex, the lower level restroom renovation project at the Butler Government Center was started , six vehicles were replaced, a fire department special utility vehicle was added to the fleet, and renovation and expansion plans in the police department were finalized with construction planned for 2018 . During 2017, the Village began a Village-wide water meter replacement project. The project is expected to be completed by the end of 2018. Approximately 5,000 old water meters are scheduled to be replaced at a total cost of $3 million. iv Various street improvements were performed throughout the Village, including the York Road repaving project. Various pedestrian access improvements in the vicin ity of the Oakbrook Center shopping area were completed. The 22nd Street (Salt Creek to I-294) median beautification project was completed . There were also many improvements made at the Sports Core this year. The Bath and Tenn is Clubhouse received many upgrades, includin g new flooring , light fixtures , and other cosmetic design changes. Also, new furniture was purchased for the pool area. Included in the 2018 General Fund budget is the Police Depa11ment renovation and expansion project. The Water Fund has the continuation of the Village-wide water meter replacement project budgeted for 2018. The Sports Core is planning swimming pool improvements, a new sign on 31st Street, replacement of the golf ca11 fleet , and Golf C lu b furniture and interior improvements. For a full listing of planned capital improvements, you can review the 2018-2022 Five-Year Plan at: http://www.oak- brook.org/304/Financial-Documents. Awards and Acknowledgements The Govenunent 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 Amrnal Financial Repo11 for the year ended December, 31, 2016. In order to be awarded a Certificate of Achievement , a governmental unit must publish an easily readable and efficiently organized comprehensive arurnal 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 va lid for a period of one year only . The Village has successfully obtained the Certificate of Achievement for 40 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. In addition, the Village of Oak Brook received the GFOA's Distinguished Budget Presentation Award for its arumal budget for the 2017 fisca l year. In order to receive this award , a goverrunental unit must publish a budget document that meets program criteria as a policy document, as an operations guide , as a :financia l plan, and as a communications device. This is the fifth consecutive year the Village has received this award. The preparation of this report cou ld not be possible without the efficient and dedicated services of the entire Finance Department of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this report, and to thank the President and members of the Board of Trustees for their interest V and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Jason Paprocki Finance Director VI ResidentsofOak BrookVillage Presidentand Board of TrusteesVillage Clerk Village Manager Village Attorney (General)Finance Director Chief of Police Fire Chief Public Works Director Development ServicesDirector Head Librarian Golf Course Grounds Superintendent Boards andCommissionsVillage of Oak BrookOrganization ChartFiscal Year 2017Village Attorney(Labor) Information Technology Services Director ix VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2017 Gopal Lalmalani, Village President Charlotte K. Pruss, Village Clerk BOARD OF TRUSTEES Moin Saiyed John Baar Michael Manzo Asif Yusuf Philip Cuevas Edward Tiesenga MANAGEMENT TEAM Riccardo Ginex Village Manager Jason Paprocki Finance Director Doug Patchin Public Works Director Tony Budzikowski Development Services Director James Fox Information Technology Director Barry Liss Fire Chief Jacob Post Head Librarian James Kruger Police Chief Sean Creed Golf Course Superintendent Page 1 INDEPENDENT AUDITORS' REPORT To the Honorable President and Board of Trustees Village of Oak Brook Oak Brook, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Oak Brook, Illinois, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the Village of Oak Brook's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village of Oak Brook's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of Oak Brook's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. To the Honorable President and Board of Trustees Village of Oak Brook Page 2 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, 2017 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit for the year ended December 31, 2017 was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook's basic financial statements. The supplementary information for the year ended December 31, 2017 as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended December 31, 2017, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole for the year ended December 31, 2017. To the Honorable President and Board of Trustees Village of Oak Brook Page 3 We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the Village of Oak Brook as of and for the year ended December 31, 2016 (not presented herein), and have issued our report thereon dated April 25, 2017, which contained unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information. The supplementary information for the year ended December 31, 2016 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2016 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2016 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended December 31, 2016. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook's basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Oak Brook, Illinois May 2, 2018 (See independent auditors’ report) 4 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2017 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, 2017. 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 i) and the Village’s Financial Statements (beginning on page 17). This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. HIGHLIGHTS Financial Highlights • For the year ending December 31, 2017, the Village’s total (combined governmental and business-type) assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $86.0 million (referred to as net position). • The Village’s total net position increased by $4.8 million, or 5.9%, compared to the prior year. • The governmental activities reported total net position of $49.5 million, which is an increase of $2.7 million, or 5.8%, in comparison to the prior year. The unrestricted portion of the net position is a $27.1 million deficit, which is attributed to the Village’s unfunded pension liabilities. • The business-type activities reported total net position of $36.5 million, which is an increase of $2.1 million, or 6.1%, in comparison to the prior year. The unrestricted portion of the net position is $6.6 million. • The Village had a total (governmental and business-type activities combined) unrestricted net position deficit of $20.5 million at December 31, 2017. • Total revenues increased $0.9 million, or 2.0%, in comparison to the prior year. Of the total increase, governmental activities revenues decreased $0.4 million and business-type activities revenues increased $1.3 million. • Total expenses decreased $1.0 million, or 2.4%, in comparison to the prior year. Of the total decrease, governmental activities expenses decreased $1.1 million and business-type activities expenses increased $0.1 million. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 5 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 Position presents information on all of the Village’s assets/deferred outflows of resources and liabilities/deferred inflows of resources, with the difference between the two reported as net position. 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 position 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 position changed during the most recent fiscal year. All changes in net position 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 17-19) 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, operations of the Oak Brook Sports Core, and the collection of golf surcharge fees. 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. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 6 By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village maintains 6 individual governmental funds. Information is presented separately in the governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balances for the General Fund, Hotel/Motel Tax Fund, Infrastructure Fund, and Promenade TIF Fund, all of which are considered to be “major” funds. Data from the other two governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major 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, except for the Foreign Fire Insurance fund. 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 20 through 25 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, the operations of the Oak Brook Sports Core, and the collection of the golf surcharge fees. 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. The Golf Surcharge fund is considered to be a non- major enterprise fund. 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 26 through 35 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters’ Pension Fund. The Village does not adopt an annual budget for either of these funds. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 7 The basic fiduciary fund financial statements can be found on pages 36 and 37 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 Activities 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 39 through 84 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 pension obligations to provide benefits to its employees. Required supplementary information can be found on pages 85 through 98 of this report. The combining statements referred to earlier in connection with non-major governmental funds, non-major 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 105 through 127 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, 2017. 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. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 8 Statement of Net Position The following table reflects a Summary of Net Position for fiscal years 2017 and 2016. Table 1 Statement of Net Position Summary As of December 31, 2017 and 2016 (in millions) 2017 2016 2017 2016 2017 2016 Assets Current and Other Assets 40.8$ 38.4$ 8.6$ 5.3$ 49.4$ 43.7$ Capital Assets 61.8 60.7 29.9 30.6 91.7 91.3 Total Assets 102.6$ 99.1$ 38.5$ 35.9$ 141.1$ 135.0$ Deferred Outflows of Resources 6.8$ 7.2$ 0.7$ 0.9$ 7.5$ 8.1$ Liabilities Long-Term Liabilities 51.3$ 54.2$ 1.7$ 1.5$ 53.0$ 55.7$ Other Liabilities 2.9 3.2 1.0 0.7 3.9 3.9 Total Liabilities 54.2$ 57.4$ 2.7$ 2.2$ 56.9$ 59.6$ Deferred Inflows of Resources 5.7$ 2.1$ -$ 0.2$ 5.7$ 2.3$ NET POSITION Net Investment in Capital Assets 61.8$ 60.5$ 29.9$ 30.5$ 91.7$ 91.0$ Restricted 14.8 12.4 - - 14.8 12.4 Unrestricted (27.1) (26.1) 6.6 3.9 (20.5) (22.2) Total Net Position 49.5$ 46.8$ 36.5$ 34.4$ 86.0$ 81.2$ Governmental Activities Business-Type Activities Total Primary Government Cash and investments, which is included in current and other assets, increased $6.3 million, or 18.8% compared to the prior year. Total governmental and business-type cash was $39.9 million at December 31, 2017. The Village’s combined net position increased from $81.2 million to $86.0 million, or $4.8 million, during 2017. The Village’s combined unrestricted net position also increased $1.7 million during 2017. The unrestricted portion of net position remains a deficit balance due to the unfunded pension liabilities, but showed improvement in 2017. The net investment in capital assets is the largest portion of net position. This represents capital assets (land, buildings, improvements, equipment, infrastructure and construction in progress), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The Village uses these capital assets to provide services to its citizens and these assets are not VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 9 available for future spending. For more detailed information, see the Statement of Net Position on page 17. Summary of Changes in Net Position The following table summarizes the revenues and expenses found on the Statement of Activities for 2017 and 2016: Table 2 Statement of Activities Summary For the Fiscal Year Ended December 31, 2017 and 2016 (in millions) 2017 2016 2017 2016 2017 2016 Revenues Program Revenues Charges for Services 3.9$ 3.5$ 13.4$ 12.2$ 17.3$ 15.7$ Grants and Contributions 0.2 0.3 - - 0.2 0.3 General Revenues Sales and Local Use Taxes 18.3 19.3 - - 18.3 19.3 Utility Taxes 6.0 6.0 - - 6.0 6.0 Other Taxes 3.0 2.7 - - 3.0 2.7 Investment Income 0.3 0.2 0.1 - 0.4 0.2 Miscellaneous - 0.1 - - - 0.1 Total Revenues 31.7$ 32.1$ 13.5$ 12.2$ 45.2$ 44.3$ Expenses General Government 5.7$ 4.7$ -$ -$ 5.7$ 4.7$ Public Safety 17.4 17.2 - - 17.4 17.2 Public Works 3.8 6.4 - - 3.8 6.4 Culture and Recreation 1.8 1.5 - - 1.8 1.5 Waterworks System - - 7.9 8.0 7.9 8.0 Sports Core - - 3.5 3.3 3.5 3.3 Interest and Fiscal Charges 0.3 0.3 - - 0.3 0.3 Total Expenses 29.0$ 30.1$ 11.4$ 11.3$ 40.4$ 41.4$ Change in Net Position 2.7$ 2.0$ 2.1$ 0.9$ 4.8$ 2.9$ Net Position - Beginning of Year 46.8 44.8 34.4 33.5 81.2 78.3 Net Position - End of Year 49.5$ 46.8$ 36.5$ 34.4$ 86.0$ 81.2$ Governmental Business-Type Total Primary Activities Activities Government VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 10 Total revenues increased $0.9 million, or 2.0%, compared to the prior year. The increase is primarily from an increase in water sales revenue due to a rate increase and increases in building permit revenues from increased economic development. This is offset by a decrease in sales and local use tax revenues compared to last year. Total expenses decreased $1.0 million, or 2.4%, compared to the prior year, which is primarily due to a decrease in roadway resurfacing projects compared to last year. Governmental Activities Revenues – Governmental Activities Charges for Services, 12.3% Grants and Contributions , 0.6% Sales and Local Use Taxes, 57.7% Utility Taxes , 18.9% Other Taxes, 9.5% Investment Income , 1.0% Revenues By Source -Governmental Activities For the fiscal year ended December 31, 2017, revenues totaled $31.7 million, a decrease of $0.4 million from 2016. Revenue from sales and use taxes, which continues to be the Village’s largest revenue source, amounted to $18.3 million, or 57.7% of total revenue. Sales and use tax revenue decreased $1.0 million, or 5.2%, from 2016 due to large non-routine receipts received in 2016 and the implementation of the State’s 2% administration fee on collecting revenues. Utility taxes, which include the taxes imposed on electric, natural gas, and telecommunications services, were $6.0 million, or 18.9% of total revenue. Utility tax revenue was flat compared to 2016. The “other taxes” classification includes a number of different revenue sources including income taxes, personal property replacement taxes, and hotel taxes. For 2017, these revenues were $3.0 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 11 million, or 9.5% of total revenues. Other taxes increased $0.3 million, or 11.1%, from 2016 due to increases in TIF real estate taxes and personal property replacement taxes. The “charges for services” classification includes number of different licenses, permits, and fees. For 2017, these revenues were $3.9 million, or 12.3% of total revenues. Charges for services increased $0.4 million, or 11.4%, from 2016 due to increases in building permit revenue. Expenses by Function – Governmental Activities General Government, 19.7% Public Safety, 60.0% Public Works, 13.1% Culture and Recreation, 6.2% Interest and Fiscal Charges , 1.0% Expenses by Function -Governmental Activities Expenses for the Village of Oak Brook for governmental activities totaled $29.0 million in 2017, a decrease of $1.1 million from 2016. Changes by individual function include: • General government expenses were $5.7 million, an increase of $1.0 million, or 21.3%, from 2016. This is due to increases in technology software and hardware purchases and Butler Government Center engineering and capital improvement costs. • Public Safety expenses were $17.4 million, an increase of $0.2 million, or 1.2%, from 2016. The increase is due to increases in personnel costs and annual pension contributions. Public safety expense increases were offset by a reduction in the annual recognition of actuarially determined pension expense. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 12 • Public works expenses were $3.8 million, a decrease of $2.6 million, or 40.6%, from 2016. The decrease is due to reduced roadway resurfacing projects compared to last year and the outsourcing of the Village engineering function. • Culture and recreation expenses were $1.8 million, an increase of $0.3 million, or 20.0%, from 2016. The increase is due to the completion of a median beautification project that was originally scheduled to be finished in 2016. Business-type Activities The business-type activities net position increased $2.1 million, or 6.1%, compared to the prior year. For business-type activities, revenues for the waterworks system were $9.9 million, which increased by $1.1 million compared to the prior year, due to an increase in Water Sales. Revenues for Sports Core were $3.4 million, which were even with 2016. Golf surcharge revenues were previously recorded in the Sports Core, but were moved to a separate fund during 2017. The Sports Core experienced another strong season of golf course revenues and increased Bath and Tennis Clubhouse facility rentals. For business-type activities, expenses for the waterworks system were $7.9 million, or 69.3% of total business-type expenses, which is a decrease of $0.1 million from 2016. Sports Core expenses were $3.5 million, or 30.7% of total business-type expenses, which is an increase of $0.2 million from 2016. Revenues and Expenses - Business-Type Activites For the Fiscal Year Ended December 31, 2017 Program Program Revenues Expenses Waterworks Sytem 9,872,001$ 7,897,092$ Sports Core 3,412,723 3,527,990 Golf Surcharge 119,400 - Total 13,404,124$ 11,425,082$ 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, 2017, the governmental funds (as presented on the balance sheet on pages 20 through 21) had a combined fund balance of $35.9 million, which is an increase of $3.4 million over the prior year. The fund balance in the General Fund increased $1.0 million from 2016 to 2017, to a total of $21.1 million. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 13 Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2017 Original Amended Budget Budget Actual Revenues Intergovernmental 14,325,335$ 14,325,335$ 13,640,557$ Utility Taxes 5,638,000 5,638,000 6,033,358 Licenses & Permits 1,711,750 1,711,750 2,205,571 Charges for Services 1,064,250 1,064,250 1,106,204 Other 697,865 697,865 741,020 Total Revenues 23,437,200$ 23,437,200$ 23,726,710$ Expenditures General Government 4,446,385$ 5,008,843$ 4,757,533$ Public Safety 16,814,355 16,678,575 16,113,415 Public Works 752,340 752,340 708,940 Culture and Recreation 989,470 989,470 874,892 Debt Service 290,625 290,625 289,800 Total Expenditures 23,293,175$ 23,719,853$ 22,744,580$ Other Financing Sources (Uses) Transfers Out (73,505)$ (73,505)$ -$ Total Other Financing Sources (Uses)(73,505)$ (73,505)$ -$ Change in Fund Balance 70,520$ (356,158)$ 982,130$ Intergovernmental revenues were under budget due primarily to sales tax revenue receipts being $0.7 million lower than budget projections. This was due to large non-routine receipts received from a newer company in 2016 that were received at a lower level in 2017. Utility taxes were over budget by $0.4 million due to a projected business reduction in 2017 that did not occur. Licenses and permits revenue was $0.5 million over budget projections due to increased building permit revenue from commercial development. Actual expenditures were $0.5 million below the original budget and $1.0 million below the amended budget. The Village continues to be conservative in its spending. The Village saw savings in personnel costs in 2017 compared to budget projections due to administrative reorganizations and decreases in overtime requirements. Budget Policy 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 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 14 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 $2,500 in all other accounts. Capital Assets The following schedule reflects the Village’s capital asset balances as of December 31, 2017 and 2016. Table 4 Capital Assets As of December 31, 2017 and 2016 (in millions) 2017 2016 2017 2016 2017 2016 Land and Land Right of Way 33.2$ 33.2$ 8.3$ 8.3$ 41.5$ 41.5$ Construction in Progress 1.2 0.4 - - 1.2 0.4 Buildings and Land Improvements 22.9 22.1 9.3 9.3 32.2 31.4 Machinery, Vehicles, and Equipment 11.1 9.8 6.0 6.0 17.1 15.8 Infrastructure 34.7 34.7 26.7 26.7 61.4 61.4 Total 103.1$ 100.2$ 50.3$ 50.3$ 153.4$ 150.5$ Accumulated Depreciation (41.3)$ (39.5)$ (20.4)$ (19.7)$ (61.7)$ (59.2)$ Total Capital Assets 61.8$ 60.7$ 29.9$ 30.6$ 91.7$ 91.3$ Governmental Activities Business-Type Activities Total Primary Government At year-end, the Village’s net investment in capital assets (net of accumulated depreciation and related long-term debt) for both its governmental and business-type activities was $91.7 million, an increase of $0.7 million from 2016 (see Note II.C. in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2017 were: • For Governmental Activities, capital spending included: Butler Government Center electrical system upgrades, Butler Government Center restroom renovation, Police Department expansion and renovation engineering, streetscape and median improvements, and various vehicle and equipment replacements. • For Business-Type Activities, capital spending included: Bath and Tennis Club renovation project, golf course mower replacements, and water system improvements. Long-Term Debt As a non-home rule community, the Village’s legal general obligation debt limit is 8.625 percent of equalized assessed valuation (EAV), or $123,289,569 based on January 1, 2017 EAV of $1,429,444,279. As of December 31, 2017, the Village had no debt outstanding applicable to the VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 15 legal limit (see Note II.E. in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village’s outstanding long-term debt: Table 5 Long-term Debt As of December 31, 2017 Governmental Business-Type Total Primary Activities Activities Government TIF Note Payable 3,330,263$ -$ 3,330,263$ Total 3,330,263$ -$ 3,330,263$ The final payment for the General Fund Certificates, Series 2009 (refunding) occurred during 2017. This debt certificate has been paid in full as of December 31, 2017. The Village’s note payable is to the Tax Increment Financing (TIF) District developers for certain improvements in the TIF area located at the Promenade (22nd 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. 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 $20.0 million to $21.0 million primarily due to revenues coming in slightly higher than budgeted while controlling expenditure increases. Total 2017 General Fund revenues of $23.7 million was a $0.2 million decrease from 2016. The Village’s intent is to hold this fund balance in reserves. The 2018 Budget continues to be a conservative financial plan while providing excellent services to its residents and business community. The 2018 budgeted revenues are $52.3 million, an increase of $2.2 million, or 4.4%, from the 2017 Budget (excludes Pension Trust and Foreign Fire Tax Funds). This is mostly due to the assumption of a debt certificate issuance to fund the Police Department renovation and expansion project. The total spending in the 2018 Budget is $56.2 million, an increase of $4.8 million, or 9.3%, from the 2017 Budget (excludes Pension Trust and Foreign Fire Tax Funds. This is mainly due to increases in capital outlay from the Police Department renovation and expansion project and Village-wide water meter replacement project. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 16 The projected ending cash balance for 2018 in the General Corporate Fund of $16.9 million is equal to 9.2 months of operating expenditures, which is above the six month reserve requirement. 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 Jason Paprocki, Finance Director, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. VILLAGE OF OAK BROOK STATEMENT OF NET POSITION As of December 31, 2017 Governmental Activities Business- Type Activities Totals ASSETS Cash and investments $33,208,609 $6,710,211 $39,918,820 Receivables (net) Property taxes 385,000 14,714 399,714 Sales taxes 5,273,572 -5,273,572 Utility taxes 1,244,821 -1,244,821 Accounts 368,874 -368,874 Billed and unbilled water sales -979,000 979,000 Allotments 17,419 -17,419 Accrued interest 124,692 8,689 133,381 Other 673,180 164,238 837,418 Internal balances (677,485)677,485 - Inventories 44,144 106,872 151,016 Prepaid items 122,510 1,340 123,850 Capital Assets Capital assets not being depreciated 34,437,778 8,292,265 42,730,043 Capital assets, net of accumulated depreciation 27,355,640 21,589,895 48,945,535 Total Assets 102,578,754 38,544,709 141,123,463 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 6,814,940 725,522 7,540,462 Total Deferred Outflows of Resources 6,814,940 725,522 7,540,462 LIABILITIES Accounts payable 815,608 911,012 1,726,620 Accrued payroll 630,645 53,393 684,038 Accrued interest 111,008 -111,008 Claims payable 200,897 -200,897 Deposits 935,982 73,916 1,009,898 Unearned revenue 126,589 17,303 143,892 Noncurrent Liabilities Due within one year 1,341,082 87,377 1,428,459 Due in more than one year 50,036,138 1,550,305 51,586,443 Total Liabilities 54,197,949 2,693,306 56,891,255 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 5,274,929 67,322 5,342,251 Deferred property taxes 385,000 -385,000 Total Deferred Inflows of Resources 5,659,929 67,322 5,727,251 NET POSITION Net investment in capital assets 61,793,418 29,882,160 91,675,578 Restricted for Infrastructure 9,743,910 -9,743,910 Highways and streets 589,054 -589,054 Fire department 244,829 -244,829 Culture and recreation 3,959,304 -3,959,304 Economic development 276,164 -276,164 Unrestricted (27,070,863)6,627,443 (20,443,420) TOTAL NET POSITION $49,535,816 $36,509,603 $86,045,419 See accompanying notes to financial statements. Page 17 VILLAGE OF OAK BROOK STATEMENT OF ACTIVITIES For the Year Ended December 31, 2017 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities General government $5,731,173 $2,588,451 $-$- Public safety 17,435,012 1,266,800 7,381 - Public works 3,751,818 16,532 201,068 3,142 Culture, education and recreation 1,741,694 13,763 -- Interest and fiscal charges 280,458 --- Total Governmental Activities 28,940,155 3,885,546 208,449 3,142 Business-type Activities Waterworks System 7,897,092 9,872,001 3,386 - Sports Core 3,527,990 3,412,723 -- Golf Surcharge -119,400 -- Total Business-type Activities 11,425,082 13,404,124 3,386 - Total $40,365,237 $17,289,670 $211,835 $3,142 General Revenues Taxes Property Sales, local use Utility taxes Hotel/motel Other Intergovernmental - unrestricted State sales tax State income tax Replacement Gain on disposal of capital assets Investment income Miscellaneous Total General Revenues Change in net position NET POSITION - Beginning of Year NET POSITION - END OF YEAR See accompanying notes to financial statements. Page 18 Net (Expenses) Revenues and Changes in Net Position Governmental Activities Business-type Activities Totals $(3,142,722)$-$(3,142,722) (16,160,831)-(16,160,831) (3,531,076)-(3,531,076) (1,727,931)-(1,727,931) (280,458)-(280,458) (24,843,018)-(24,843,018) -1,978,295 1,978,295 -(115,267)(115,267) -119,400 119,400 -1,982,428 1,982,428 (24,843,018)1,982,428 (22,860,590) 385,018 -385,018 5,884,885 -5,884,885 6,033,358 -6,033,358 1,265,583 -1,265,583 106,517 -106,517 12,381,929 -12,381,929 724,273 -724,273 298,832 -298,832 176,717 -176,717 338,148 46,165 384,313 29,298 -29,298 27,624,558 46,165 27,670,723 2,781,540 2,028,593 4,810,133 46,754,276 34,481,010 81,235,286 $49,535,816 $36,509,603 $86,045,419 See accompanying notes to financial statements. Page 19 VILLAGE OF OAK BROOK BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2017 General Hotel/Motel Tax Infrastructure Promenade TIF AS SETS Cash and investments $17,526,141 $4,145,455 $8,181,503 $276,164 Receivables Property taxes ---385,000 Sales taxes 3,622,770 -1,650,802 - Utility taxes 1,244,821 --- Accounts 368,874 --- Allotments ---- Accrued interest 81,212 13,732 20,840 - Other 390,214 75,162 127,697 - Inventories 1,286 --- Prepaid items 55,363 --- TOTAL ASSETS $23,290,681 $4,234,349 $9,980,842 $661,164 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $373,187 $275,045 $65,951 $- Accrued payroll 571,494 -51,783 - Deposits 935,982 --- Unearned revenues 93,712 --- Total Liabilities 1,974,375 275,045 117,734 - Deferred Inflows of Resources Deferred property taxes ---385,000 Unavailable other receivables 261,632 -119,198 - Total Deferred Inflows of Resources 261,632 -119,198 385,000 Fund Balances Nonspendable for inventory 1,286 --- Nonspendable for prepaid items 55,363 --- Restricted for infrastructure --9,743,910 - Restricted for highways and streets ---- Restricted for fire department ---- Restricted for culture and recreation -3,959,304 -- Restricted for economic development ---276,164 Unassigned 20,998,025 --- Total Fund Balances 21,054,674 3,959,304 9,743,910 276,164 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $23,290,681 $4,234,349 $9,980,842 $661,164 See accompanying notes to financial statements. Page 20 Nonmajor Governmental Funds Totals $812,715 $30,941,978 -385,000 -5,273,572 -1,244,821 -368,874 17,419 17,419 2,974 118,758 -593,073 -1,286 775 56,138 $833,883 $39,000,919 $-$714,183 -623,277 -935,982 -93,712 -2,367,154 -385,000 -380,830 -765,830 -1,286 775 56,138 -9,743,910 589,054 589,054 244,054 244,054 -3,959,304 -276,164 -20,998,025 833,883 35,867,935 $833,883 $39,000,919 See accompanying notes to financial statements. Page 21 VILLAGE OF OAK BROOK RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION As of December 31, 2017 Total Fund Balances - Governmental Funds $35,867,935 Amounts reported for governmental activities in the statement of net position 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.57,607,113 Unavailable other receivables recognized in the statement of net position do not provide current financial resources and are included as deferred inflows of resources in the governmental funds balance sheet.380,830 Interest payable is not due and payable in the current period and, therefore, is not reported in the governmental funds.(111,008) Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.6,770,020 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(5,270,761) Internal service funds are reported in the statement of net position as governmental activities.5,558,677 Some liabilities (excluding those reported in the internal service funds amount above), including long-term debt, are not due and payable in the current period and therefore, are not reported in the funds. Notes payable (3,330,263) Compensated absences payable (1,134,449) Net pension liability (45,890,961) Net other postemployment benefit obligation (911,317) NET POSITION OF GOVERNMENTAL ACTIVITIES $49,535,816 See accompanying notes to financial statements. Page 22 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2017 General Hotel/Motel Tax Infrastructure Promenade TIF REVENUES Intergovernmental $13,640,557 $-$3,142 $99,281 Non-home rule sales tax --5,581,924 - Utility taxes 6,033,358 --- Hotel and motel taxes -1,265,583 -- Licenses and permits 2,205,571 --- Charges for services 1,106,204 --- Property taxes ---385,018 Fines, forfeitures and penalties 144,833 --- Investment income 190,254 42,060 67,434 925 Miscellaneous 405,933 44,095 5,745 - Total Revenues 23,726,710 1,351,738 5,658,245 485,224 EXPENDITURES Current General government 4,757,533 93,400 164,928 3,958 Public safety 16,113,415 --- Public works 708,940 -3,063,863 - Culture and recreation 874,892 1,592,540 -- Debt Service Principal 280,000 --177,000 Interest and fiscal charges 9,800 --277,380 Total Expenditures 22,744,580 1,685,940 3,228,791 458,338 Excess (deficiency) of revenues over expenditures 982,130 (334,202)2,429,454 26,886 OTHER FINANCING USES Transfers in --548,454 - Transfers out ---- Total Other Financing Uses --548,454 - Net Change in Fund Balances 982,130 (334,202)2,977,908 26,886 FUND BALANCES - Beginning of Year 20,072,544 4,293,506 6,766,002 249,278 FUND BALANCES - END OF YEAR $21,054,674 $3,959,304 $9,743,910 $276,164 See accompanying notes to financial statements. Page 23 Nonmajor Governmental Funds Totals $282,719 $14,025,699 -5,581,924 -6,033,358 -1,265,583 -2,205,571 -1,106,204 -385,018 -144,833 9,113 309,786 1,770 457,543 293,602 31,515,519 -5,019,819 41,833 16,155,248 -3,772,803 -2,467,432 -457,000 -287,180 41,833 28,159,482 251,769 3,356,037 -548,454 (548,454)(548,454) (548,454)- (296,685)3,356,037 1,130,568 32,511,898 $833,883 $35,867,935 See accompanying notes to financial statements. Page 24 VILLAGE OF OAK BROOK RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2017 Net change in fund balances - total governmental funds $3,356,037 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the statement of activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 1,963,068 Depreciation is reported in the government-wide financial statements (1,507,555) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements.147,979 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.457,000 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences (64,866) Interest payable 6,721 Net postemployment benefits obligation (343,027) Net pension liability 2,792,606 Deferred outflows of resources related to pensions (351,121) Deferred inflows of resources related to pensions (3,520,095) The change in net position of certain activities of internal service funds is included in governmental activities.(155,207) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $2,781,540 See accompanying notes to financial statements. Page 25 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2017 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals ASSETS Current Assets Cash and investments $5,682,739 $474,973 $552,499 $6,710,211 Receivables Billed and unbilled water sales 979,000 --979,000 Accrued interest 5,318 -3,371 8,689 Other 64,891 114,061 -178,952 Inventories -106,872 -106,872 Prepaid items -1,340 -1,340 Total Current Assets 6,731,948 697,246 555,870 7,985,064 Noncurrent Assets Capital assets not being depreciated 215,800 8,076,465 -8,292,265 Capital assets, net of accumulated depreciation 17,822,797 3,767,098 -21,589,895 Total Noncurrent Assets 18,038,597 11,843,563 -29,882,160 Total Assets 24,770,545 12,540,809 555,870 37,867,224 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 314,581 410,941 -725,522 Total Deferred Outflows of Resources 314,581 410,941 -725,522 See accompanying notes to financial statements. Page 26 Governmental Activities - Internal Service Funds $2,266,631 - 5,934 80,107 42,858 66,372 2,461,902 - 4,186,305 4,186,305 6,648,207 44,920 44,920 See accompanying notes to financial statements. Page 27 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2017 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals LIABILITIES Current Liabilities Accounts payable 828,008 83,004 -911,012 Accrued payroll 29,322 24,071 -53,393 Compensated absences payable 50,334 37,043 -87,377 Deposits 652 73,264 -73,916 Unearned revenues -17,303 -17,303 Claims payable ---- Total Current Liabilities 908,316 234,685 -1,143,001 Noncurrent Liabilities Net pension liability - IMRF 615,144 803,574 -1,418,718 Other post employment benefits payable 66,216 65,371 -131,587 Total Noncurrent Liabilities 681,360 868,945 -1,550,305 Total Liabilities 1,589,676 1,103,630 -2,693,306 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 29,190 38,132 -67,322 Total Deferred Inflows of Resources 29,190 38,132 -67,322 NET POSITION Investment in capital assets 18,038,597 11,843,563 -29,882,160 Unrestricted 5,427,663 (33,575)555,870 5,949,958 TOTAL NET POSITION $23,466,260 $11,809,988 $555,870 35,832,118 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds.677,485 Net Position Business-type Activities $36,509,603 Net internal service funds reported in the statement of net position as governmental activities See accompanying notes to financial statements. Page 28 Governmental Activities - Internal Service Funds 101,425 7,368 9,633 - 32,877 200,897 352,200 87,838 12,759 100,597 452,797 4,168 4,168 4,186,305 2,049,857 $6,236,162 (677,485) $5,558,677 See accompanying notes to financial statements. Page 29 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2017 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals OPERATING REVENUES Charges for services $9,872,001 $3,413,811 $119,400 $13,405,212 Intergovernmental ---- Total Operating Revenues 9,872,001 3,413,811 119,400 13,405,212 OPERATING EXPENSES Operation of facilities 7,325,897 3,214,966 -10,540,863 Claims and insurance ---- Miscellaneous ---- Depreciation and amortization 551,415 298,491 -849,906 Total Operating Expenses 7,877,312 3,513,457 -11,390,769 Operating Income 1,994,689 (99,646)119,400 2,014,443 NONOPERATING REVENUES (EXPENSES) Investment income 41,152 -5,013 46,165 Grants 3,386 --3,386 Miscellaneous ---- Gain (loss) on disposal of capital assets -(1,088)-(1,088) Total Nonoperating Revenues (Expenses)44,538 (1,088)5,013 48,463 Income Before Transfers 2,039,227 (100,734)124,413 2,062,906 TRANSFERS Transfers in --431,457 431,457 Transfers out -(431,457)-(431,457) Total Transfers -(431,457)431,457 - Change in Net Position 2,039,227 (532,191)555,870 2,062,906 NET POSITION - Beginning of Year 21,427,033 12,342,179 - NET POSITION - END OF YEAR $23,466,260 $11,809,988 $555,870 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds (34,313) Change in Net Position of Business-type Activities $2,028,593 See accompanying notes to financial statements. Page 30 Governmental Activities - Internal Service Funds $4,493,949 148,929 4,642,878 653,088 3,526,719 84,000 624,740 4,888,547 (245,669) 25,521 - 2,840 27,788 56,149 (189,520) - - - (189,520) 6,425,682 $6,236,162 See accompanying notes to financial statements. Page 31 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2017 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $9,793,718 $3,378,607 $119,400 $13,291,725 Receipts from internal service transactions ---- Paid to suppliers for goods and services (6,286,389)(1,887,750)-(8,174,139) Paid to employees for services (540,367)(1,179,064)-(1,719,431) Net Cash Flows From Operating Activities 2,966,962 311,793 119,400 3,398,155 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured 936,577 550,362 3,278 1,490,217 Investment income 41,152 -5,013 46,165 Purchase of investments (519,094)(117,090)(544,456)(1,180,640) Interest received 3,408 1,636 (3,371)1,673 Other (520)1,162 3,203 3,845 Net Cash Flows From Investing Activities 461,523 436,070 (536,333)361,260 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Net transfers in (out)-(431,457)431,457 - Net Cash Flows From Noncapital Financing Activities -(431,457)431,457 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (57,700)(113,349)-(171,049) Proceeds from sale of capital assets -1,088 -1,088 Net Cash Flows From Capital and Related Financing Activities (57,700)(112,261)-(169,961) Net Change in Cash and Cash Equivalents 3,370,785 204,145 14,524 3,589,454 CASH AND CASH EQUIVALENTS - Beginning of Year 1,463,344 270,828 -1,734,172 CASH AND CASH EQUIVALENTS - END OF YEAR $4,834,129 $474,973 $14,524 $5,323,626 See accompanying notes to financial statements. Page 32 Governmental Activities - Internal Service Funds $1,137,957 3,445,519 (4,226,204) (97,135) 260,137 393,282 25,521 (209,614) (1,626) 5,418 212,981 - - (487,588) 26,510 (461,078) 12,040 1,307,589 $1,319,629 See accompanying notes to financial statements. Page 33 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2017 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING AC TIVITIES Operating income (loss)$1,994,689 $(99,646)$119,400 $2,014,443 Adjustments to Reconcile Operating Income to Net Cash Flows From Operating Activities Depreciation 551,415 298,491 -849,906 Changes in assets and liabilities Accounts receivable (25,527)(29,249)-(54,776) Inventory -31,216 -31,216 Prepaids 83 (1,340)-(1,257) Deferred outflows - pensions 36,137 101,182 -137,319 Billed and unbilled water sales (53,265)--(53,265) Accounts payable 406,720 4,698 -411,418 Customer deposits 509 (4,856)-(4,347) Accrued salaries (5,716)716 -(5,000) Compensated absences payable (4,107)1,672 -(2,435) Claims payable ---- Other post employment benefits payable 17,477 38,278 -55,755 Net pension liability 77,270 18,163 -95,433 Deferred inflows - pensions (28,723)(46,433)-(75,156) Unearned revenues -(1,099)-(1,099) NET CASH FLOWS FROM OPERATING ACTIVITIES $2,966,962 $311,793 $119,400 $3,398,155 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION - PROPRIETARY FUNDS Cash and cash equivalents $4,834,129 $474,973 $14,524 $5,323,626 Investments 848,610 -537,975 1,386,585 CASH AND INVESTMENTS $5,682,739 $474,973 $552,499 $6,710,211 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None See accompanying notes to financial statements. Page 34 Governmental Activities - Internal Service Funds $(245,669) 624,740 (52,655) 9,190 (36,262) 8,517 - (206,538) - 1,688 (537) 157,978 5,203 5,885 (4,656) (6,747) $260,137 $1,319,629 947,002 $2,266,631 See accompanying notes to financial statements. Page 35 VILLAGE OF OAK BROOK STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS As of December 31, 2017 Pension Trusts ASSETS Cash $918,707 Investments Certificates of deposit 875,114 Money markets 2,820,121 U.S. treasuries 1,096,902 U.S. agencies 9,416,789 State and local obligations 2,520,980 Corporate bonds 6,842,098 Mutual funds 41,209,804 Accrued interest 193,515 Prepaid items 4,607 Total Assets 65,898,637 LIABILITIES Accounts payable 25,332 Total Liabilities 25,332 NET POSITION Restricted for pension benefits 65,873,305 TOTAL NET POSITION $65,873,305 See accompanying notes to financial statements. Page 36 VILLAGE OF OAK BROOK STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2017 Pension Trusts AD DITIONS Contributions Employer $3,828,256 Employee 682,204 Other 1,657 Total Contributions 4,512,117 Investment income Net appreciation in fair value 3,372,325 Interest 4,672,531 Total Investment Income 8,044,856 Less Investment expense 125,569 Net Investment Income 7,919,287 Total Additions 12,431,404 DEDUCTIONS Benefits and refunds 5,010,759 Administrative 76,810 Total Deductions 5,087,569 Net Decrease in Net Position 7,343,835 NET POSITION - Beginning of Year 58,529,470 NET POSITION - END OF YEAR $65,873,305 See accompanying notes to financial statements. Page 37 VILLAGE OF OAK BROOK INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE Page I Summary of Significant Accounting Policies 39 A.Reporting Entity 39 B.Government-W ide and Fund Financial Statements 40 C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation 43 D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 44 1.Deposits and Investments 44 2.Receivables 47 3.Inventories and Prepaid Items 48 4.Capital Assets 48 5.Deferred Outflows of Resources 49 6.Compensated Absences 49 7.Long-Term Obligations 50 8.Deferred Inflows of Resources 50 9. Equity Classifications 51 E. Deficit Balances 52 II Detailed Notes on All Funds 53 A.Deposits and Investments 53 B.Receivables 59 C.Capital Assets 60 D.Interfund Transfers 62 E.Long-Term Obligations 63 III Other Information 64 A.Employees' Retirement System 64 B.Risk Management 78 C.Commitments and Contingencies 80 D.Other Postemployment Benefits 80 E.Tax Abatement 83 F.Effect of New Accounting Standards on Current-Period Financial Statements 84 See accompanying notes to financial statements. Page 38 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Oak Brook, Illinois (the Village) was incorporated in 1958. The Village is a non home-rule municipality, under the 1970 Illinois Constitution, located in DuPage County, Illinois. The Village operates under a President-Trustee form of government and provides the following services as authorized by its charter: public safety (police and 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. The accounting policies of the Village conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). A.REPORTING ENTITY This report includes all of the funds of the Village. The reporting entity for the Village consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The Village has not identified any organizations that meet this criteria. The Police Pension Employees Retirement System (PPERS) is established for the Village's police employees. PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s Board, one elected by retired pension members and two elected by active members, constitutes the pension board. The Village and the 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 characteristics of a legally separate government, 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. PPERS is reported as a pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements. No separate annual financial report is issued for the PPERS. The Firefighters’ Pension Employees Retirement System (FPERS) is established for the Village's firefighters. FPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s Board, one elected by retired pension members and two elected by active members constitute the pension board. The Village and the 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, 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 because of the fiduciary nature of such activities. FPERS is reported as a pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements. No separate annual financial report is issued for the FPERS. Page 39 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds.The statements distinguish between governmental and business-type activities. 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 generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Village does not allocate indirect expenses to functions in the statement of activities. 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 contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the Village are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues, and expenditures/expenses. Page 40 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the Village believes is particularly important to financial statement users may be reported as a major fund. 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. The Village reports the following major governmental funds: General Fund - accounts for the Village's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Hotel/Motel Tax Fund - used to account for local hotel/motel tax receipts restricted for promoting tourism and conventions in the Village. Infrastructure Fund - used to account for revenues restricted for and expenditures relative to the construction and maintenance of roadway, drainage and bike trail improvements. Promenade TIF Fund - used to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. The Village reports the following major enterprise funds: Waterworks System Fund - accounts for the revenues and expenses relative to the operation of the water utility. Sports Core Fund - accounts for the revenues and expenses relative to the operation of the Oak Brook Sports Core. Page 41 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) The Village reports the following nonmajor governmental and enterprise funds: Special Revenue Funds - used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Motor Fuel Tax Foreign Fire Insurance Enterprise Fund - used to account for and report any activity for which a fee is charged to external uses for goods or services, and must be used for activities which meet certain debt or cost recovery criteria. Golf Surcharge In addition, the Village reports the following fund types: Internal Service Funds - used to 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. Self-Insurance Garage Capital Replacement Pension Trust Funds - used to account for and report resources that are required to be held in trust for the members and beneficiaries of the Village's defined benefit pension plans. Police Pension Firefighters' Pension Page 42 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used 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 are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled the resources and the amounts are available. Amounts owed to the Village which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. Page 43 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements (cont.) The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Waterworks and Sports Core funds are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY 1.Deposits and Investments For purposes of the statement of cash flows, the Village's proprietary funds consider all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Illinois Statutes authorize the Village to make deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, and the Illinois Funds Investment Pool. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions, and the Illinois insurance company general and separate accounts, mutual funds meeting certain requirements, equity securities, and corporate bonds meeting certain requirements. Pension funds with net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The police pension fund’s investment policy allows investments in all of the above listed accounts. The firefighters' pension fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. Page 44 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) The Police Pension Fund's investment policy allows investments in all of the above listed accounts. The police pension fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Money market mutual funds 5%0.50% Fixed income 45%2.50% Mutual funds 55%5.50% Illinois Compiled Statues (ILCS) limit the Police Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2017 is summarized in the table above. The Firefighters' Pension Fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. The Firefighters’ Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Money market mutual funds 5%0.50% Fixed income 35%2.50% Mutual funds 60%5.50% Illinois Compiled Statues (ILCS) limit the Firefighters' Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. Page 45 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2017 is summarized in the table above. The Village has adopted an investment policy. That policy follows the state statute for allowable investments. Interest Rate Risk In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to remain sufficiently liquid to enable the Village to meet all operating requirements which may be reasonably anticipated in any Village fund. Maturities of investments in all funds covered by this policy shall not exceed five years, unless a temporary extension of maturities is approved by the Board of Trustees. The Police and Firefighters' Pensions' investment policies limits their exposure to interest rate risk by structuring the portfolio to provide liquidity for operating expenses and benefits and maximizing yields for funds not needed within a one-year period. The investment policies do not limit the maximum maturity length of investments in the Police and Firefighters' Pensions' Funds. Credit Risk The Village limits its exposure to credit risk by investing in securities issued by the United States Government, securities issued by agencies of the United States Government, which are implicitly guaranteed by the United States Government, or corporate bonds rated within the three highest classifications by at least two standard rating services. The Police and Firefighters' Pensions' both strive to limit its exposure to credit risk, by primarily investing in securities issued by the United States Government that carry an implicit guarantee, high quality state or local obligations or corporate bonds rate within the three highest classifications by at least two standard rating services. Concentration of Credit Risk In order to limit the exposure to concentration of credit risk, the Village's investment policy limits investments in any one financial institution to 20%, exclusive of securities guaranteed by the full faith and credit of the United States Government or obligations of agencies of the United States Government. Page 46 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) Custodial Credit Risk - Deposits The Village's, Police Pension's and Firefighters' Pension's 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 Village in the Village's name. Custodial Credit Risk - Investments The Village investment policy limits its exposure to custodial credit risk by utilizing an independent, third party institution, to act as a custodian for its securities and collateral. The Police and Firefighters' Pensions limit their exposure to custodial credit by utilizing a Trust Department of to act as a custodian for its fixed income and equity securities. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on quoted market prices. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investments could be sold. See Note II. A. for further information. 2.Receivables Property taxes for levy year 2017 attaches as an enforceable lien on January 1, 2017, on property values assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax Levy Ordinance). Tax bills for levy year 2017 are prepared by DuPage County and issued on or about May 1, and August 1, and are payable in two installments, on or about June 1, and September 1. Page 47 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 2.Receivables (cont.) 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/Meyers Road Redevelopment Project Area (TIF). During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. 3.Inventories and Prepaid Items Inventories are recorded based on the average cost method, 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 nonspendable fund balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items/expenses is recorded as expenditures/expenses when consumed rather than when purchased. 4.Capital Assets Government-Wide Statements Capital assets, which include property, plant and 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 1 year. All capital assets are valued at historical cost, or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated fair value at the date of donation. The costs of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend asset lives are not capitalized. Page 48 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 4.Capital Assets (cont.) Government-Wide Statements (cont.) Additions to and replacements of capital assets of business-type activities are recorded at original cost, which includes material, labor, overhead, and an allowance for the cost of funds used during construction when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense incurred during construction netted against any interest revenue from temporary investment of borrowed fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is charged to accumulated depreciation. Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation and amortization reflected in the statement of net position. Depreciation and amortization is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Land improvements 20 Years Buildings and building improvements 5-50 Years Equipment 5-20 Years Vehicles 2-20 Years Infrastructure 20-75 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. 5. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. 6.Compensated Absences Under terms of employment, employees are granted vacation, sick and compensatory leave in varying amounts. Only benefits considered to be vested are disclosed in these statements. Page 49 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 6. Compensated Absences (cont.) All vested vacation, sick leave and compensatory leave pay is accrued when incurred in the government- wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation, sick leave and compensatory leave will be made at rates in effect when the benefits are used. Accumulated vacation, sick leave and compensatory leave at December 31, 2017, are determined on the basis of current salary rates and include salary related payments. 7.Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes payable, net pension liabilities, net other postemployment benefit obligations payable and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. 8.Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. Page 50 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (ordinance) of the Village Board. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Village Board that originally created the commitment. Page 51 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications (cont.) Fund Statements (cont.) d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Village Board has, by resolution, adopted a financial policy authorizing the Finance Director to assign amounts for a specific purpose. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. 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 six months of budgeted operating 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. E.DEFICIT BALANCES Generally accepted accounting principles require disclosure of individual funds that have deficit balances at year end. As of December 31, 2017, the following individual funds held a deficit balance: Fund Amount Reason Self-Insurance $49,874 Unexpected increase in health claims Page 52 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS A.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 position as "cash and investments." The deposits and investments of the pension trust funds are held separately from those of other funds. The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Petty cash $4,100 $-N/A Deposits 2,319,691 3,159,307 Custodial credit risk Money markets 2,820,121 2,820,121 Credit risk Illinois funds 17,227,939 17,227,939 Credit risk Certificates of deposit (Non-negotiable)7,808,530 7,808,530 Custodial credit risk Corporate bonds 11,114,155 11,114,155 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk U.S. treasury obligations 1,096,902 1,096,902 Custodial credit risk, interest rate risk U.S. agency obligations - explicit 865,074 865,074 Custodial credit risk, interest rate risk U.S. agency obligations - implicit 9,396,030 9,396,030 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Mutual funds - other than bond funds 41,209,804 41,209,804 N/A State and local obligations 11,756,989 11,756,989 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Total Deposits and Investments $105,619,335 $106,454,851 Page 53 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Reconciliation to financial statements Per statement of net position Cash and investments $39,918,820 Per statement of net position - fiduciary funds Cash 918,707 Certificates of deposit 875,114 Money markets 2,820,121 U.S. treasuries 1,096,902 U.S. agencies 9,416,789 Corporate bonds 6,842,098 Mutual funds 41,209,804 State and local obligations 2,520,980 Total Deposits and Investments $105,619,335 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. As of December 31, 2017, investments were meaured using the market valuation method and valuation inputs as follows: Village Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$844,315 $-$844,315 State and local obligations -9,236,009 -9,236,009 Corporate bonds -4,272,057 -4,272,057 Illinois funds -17,227,939 -17,227,939 Total $-$31,580,320 $-$31,580,320 Page 54 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Police Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$3,960,719 $-$3,960,719 U.S. treasuries -299,019 -299,019 State and local obligations -1,158,346 -1,158,346 Mutual funds 24,401,322 --24,401,322 Corporate bonds -4,826,799 -4,826,799 Total $24,401,322 $10,244,883 $-$34,646,205 Firefighters' Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$5,456,070 $-$5,456,070 U.S. treasuries -797,883 -797,883 State and local obligations -1,362,634 -1,362,634 Mutual funds 16,808,482 --16,808,482 Corporate bonds -2,015,299 -2,015,299 Total $16,808,482 $9,631,886 $-$26,440,368 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may not be returned to the Village. The Village does not have any deposits exposed to custodial credit risk. Investments For an investment, custodial credit 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. The Village does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Page 55 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Credit Risk (cont.) As of December 31, 2017, investments were rated as follows: Village Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated State and local obligations $9,236,009 $-$4,632,402 $3,276,378 $-$1,327,229 Corporate bonds 4,272,057 --1,881,134 2,390,923 - Illinois funds 17,227,939 17,227,939 ---- Totals $30,736,005 $17,227,939 $4,632,402 $5,157,512 $2,390,923 $1,327,229 Police Pension Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $3,954,212 $-$3,954,212 $-$-$- State and local obligations 1,158,346 105,864 877,099 -175,383 - Corporate bonds 4,826,799 --1,901,536 2,925,263 - Totals $9,939,357 $105,864 $4,831,311 $1,901,536 $3,100,646 $- Firefighters' Pension Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $5,441,818 $-$5,441,818 $-$-$- State and local obligations 1,362,634 251,337 1,101,281 10,016 -- Corporate bonds 2,015,299 -551,070 1,391,651 72,578 - Totals $8,819,751 $251,337 $7,094,169 $1,401,667 $72,578 $- Page 56 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At December 31, 2017, the investment portfolio was concentrated as follows: Village Issuer Investment Type Percentage of Net Position Goldman Sachs Corporate bonds 5.00% Wachovia Corp NT Corporate bonds 5.00% Morgan Stanley Corporate bonds 6.00% Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2017, investments were as follows: Village Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - explicit $844,315 $-$-$-$844,315 State and local obligations 9,236,009 2,624,810 6,611,199 -- Corporate bonds 4,272,057 4,272,057 --- Totals $14,352,381 $6,896,867 $6,611,199 $-$844,315 Page 57 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Interest Rate Risk (cont.) Police Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 U.S. agency securities - implicit $3,954,212 $204,537 $1,558,574 $2,191,101 U.S. agency securities - explicit 6,507 3,410 3,097 - U.S. treasury 299,019 299,019 -- State and local obligations 1,158,346 175,383 610,510 372,453 Corporate bonds 4,826,799 278,106 2,266,172 2,282,521 Totals $10,244,883 $960,455 $4,438,353 $4,846,075 Firefighters' Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - implicit $5,441,818 $-$1,190,848 $3,653,769 $597,201 U.S. agency securities - explicit 14,252 -14,252 -- U.S. treasury 797,883 49,992 593,859 154,032 - State and local obligations 1,362,634 -714,751 594,950 52,933 Corporate bonds 2,015,299 430,070 877,554 707,675 - Totals $9,631,886 $480,062 $3,391,264 $5,110,426 $650,134 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2017, the annual money-weighted rate of return on the police pension plan investments, net of pension plan investment expense, was 13.35%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Page 58 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Money-Weighted Rate of Return (cont.) Firefighters' Pension Fund For the year ended December 31, 2017, the annual money-weighted rate of return on the firefighters' pension plan investments, net of pension plan investment expense, was 13.95%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. See Note I.D.1. for further information on deposit and investment policies. B.RECEIVABLES All of the receivables on the balance sheet are expected to be collected within one year. Page 59 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS Capital asset activity for the year ended December 31, 2017, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated Land $616,829 $-$-$616,829 Land right of way 32,551,116 --32,551,116 Construction in progress 380,501 1,036,831 147,499 1,269,833 Total Capital Assets Not Being Depreciated 33,548,446 1,036,831 147,499 34,437,778 Capital assets being depreciated Buildings, building and land improvements 22,129,009 773,529 -22,902,538 Computer equipment 1,112,884 69,980 136,178 1,046,686 Other equipment 1,736,622 94,388 35,309 1,795,701 Vehicles 31,006 127,047 -158,053 Infrastructure 34,698,120 8,792 -34,706,912 Internal service fund vehicles 6,940,590 1,232,168 122,054 8,050,704 Total Capital Assets Being Depreciated 66,648,231 2,305,904 293,541 68,660,594 Total Capital Assets 100,196,677 3,342,735 441,040 103,098,372 Less: Accumulated depreciation for Buildings, building and land improvements (8,780,272)(645,756)-(9,426,028) Computer equipment (944,762)(61,505)136,178 (870,089) Other equipment (1,456,755)(66,997)35,309 (1,488,443) Vehicles (31,006)--(31,006) Infrastructure (24,891,692)(733,297)-(25,624,989) Internal service fund vehicles (3,361,713)(624,740)122,054 (3,864,399) Total Accumulated Depreciation (39,466,200)(2,132,295)293,541 (41,304,954) Net Capital Assets Being Depreciated 27,182,031 173,609 -27,355,640 Total Governmental Activities Capital Assets, Net of Accumulated Depreciation $60,730,477 $1,210,440 $147,499 $61,793,418 Page 60 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Governmental Activities General government $498,255 Public safety 461,618 Public works 961,947 Culture and recreation 210,475 Total Governmental Activities Depreciation Expense $2,132,295 Beginning Balance Additions Deletions Ending Balance Business-type Activities Capital assets not being depreciation Land $8,292,265 $-$-$8,292,265 Total Capital Assets Not Being Depreciation 8,292,265 --8,292,265 Capital assets being depreciated Land improvements 3,218,489 17,324 -3,235,813 Buildings and building improvements 6,050,616 45,725 7,611 6,088,730 Infrastructure 26,682,476 -5,643 26,676,833 Vehicles, machinery, and equipment 5,992,463 108,000 80,794 6,019,669 Total Capital Assets Being Depreciated 41,944,044 171,049 94,048 42,021,045 Total Capital Assets 50,236,309 171,049 94,048 50,313,310 Less: Accumulated depreciation for Land improvements (2,542,936)(65,812)-(2,608,748) Buildings and building improvements (3,191,598)(131,584)3,932 (3,319,250) Infrastructure (8,975,500)(428,819)188 (9,404,131) Vehicles, machinery, and equipment (4,953,014)(223,691)77,684 (5,099,021) Total Accumulated Depreciation (19,663,048)(849,906)81,804 (20,431,150) Net Capital Assets Being Depreciated 22,280,996 (678,857)12,244 21,589,895 Business-type Capital Assets, Net of Accumulated Depreciation $30,573,261 $(678,857)$12,244 $29,882,160 Page 61 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Business-type Activities Waterworks $551,415 Sports Core 298,491 Total Business-type Activities Depreciation Expense $849,906 D.INTERFUND TRANSFERS The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose Infrastructure Nonmajor Governmental $548,454 Provide funding for various roadway projects Nonmajor Proprietary Sports Core 431,457 Transfer the golf surcharge balance to new fund Total - Fund Financial Statements $979,911 Less: Fund eliminations (979,911) Total Transfers - Government-W ide Statement of Activities $- Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Page 62 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2017, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Installment contracts payable $280,000 $-$280,000 $-$- Notes payable 3,507,263 -177,000 3,330,263 197,000 Net pension liability - IMRF 3,613,095 -135,385 3,477,710 - Net pension liability - police 20,873,623 -460,255 20,413,368 - Net pension liability - fire 24,278,802 -2,191,081 22,087,721 - Net other postemployment benefit obligation 575,846 348,230 -924,076 - Compensated absences 1,079,753 1,144,082 1,079,753 1,144,082 1,144,082 Total Governmental Activities Long-Term Liabilities $54,208,382 $1,492,312 $4,323,474 $51,377,220 $1,341,082 Business-type Activities Net pension liability - IMRF $1,323,285 $95,433 $-$1,418,718 $- Net other postemployment benefit obligation 75,832 55,755 -131,587 - Compensated absences 89,812 87,377 89,812 87,377 87,377 Total Business-type Activities Long-Term Liabilities $1,488,929 $238,565 $89,812 $1,637,682 $87,377 The Village is subject to the Illinois Municipal Code, which limits the amount of certain indebtedness to 8.625% of the most recent available equalized assessed valuation of the Village. As of December 31, 2017, the statutory debt limit for the Village was $123,289,569, providing a debt margin of $123,289,569. The compensated absences for governmental activities typically have been liquidated by the General Fund and the Infrastructure Fund and are considered all due within one year. The net pension liabilities and other postemployment benefit obligation have typically been liquidated by the General Fund. Page 63 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS (cont.) Notes Payable The Village has issued notes payable related to developer and intergovernmental agreements. Notes payable at December 31, 2017 consist of the following: Governmental Activities Notes Payable Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2017 TIF developer note June 6, 2005 February 1, 2024 8.00%$4,250,000 $3,330,263 Total Governmental Activities Notes Payable $3,330,263 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. NOTE III - OTHER INFORMATION A.EMPLOYEES' RETIREMENT SYSTEM The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan which is a single-employer pension plan; and the Firefighters' Pension Plan which is a single-employer pension plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension plans. IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. Illinois Municipal Retirement Fund Plan description.All employees (other than those covered by the Police and Firefighters' Pension plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of 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 (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 3% for each year thereafter. Page 64 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of 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 the first 15 years of service credit, plus 2% for each year of service after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased ever year after retirement, upon reaching age 67, by the lesser of 3% of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. Plan membership. At December 31, 2016, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 107 Inactive, non-retired members 79 Active members 68 Total 254 Contributions. As set by statute, Village employees participating in IMRF are required to contribute 4.50% of their annual covered salary. The statute requires the Village to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Village’s actuarially determined contribution rate for calendar year 2017 was 13.40% of annual covered payroll for IMRF. The Village also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2016, and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies. For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Page 65 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2016 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.50% Inflation 3.50% Salary increases 3.75% to 14.50%, including inflation Price inflation 2.75% Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP- 2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan investments was determined using an asset allocation study in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Projected Returns/Risks Asset Class Target Allocation One Year Arithmetic Ten Year Geometric Equities 38.00%8.85%7.39% International equities 17.00%9.55%7.59% Fixed income 27.00%3.05%3.00% Real estate 8.00%7.20%6.00% Alternatives 9.00% Private equity 13.15%8.15% Hedge funds 5.55%5.25% Commodities 4.40%2.75% Cash equivalents 1.00%2.25%2.25% Page 66 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.50%. The discount rate calculated using the December 31, 2015 measurement date was 7.47%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits to determine the total pension liability. Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents net pension liability/(asset) of the Village calculated using the discount rate of 7.50% as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $43,396,707 $38,512,784 $34,509,784 Plan fiduciary net pension 33,616,356 33,616,356 33,616,356 Net pension liability/(asset)$9,780,351 $4,896,428 $893,428 Page 67 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar year ended December 31, 2016 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Balances at December 31, 2015 $36,777,570 $31,841,190 $4,936,380 Service cost 558,199 -558,199 Interest on total pension liability 2,706,946 -2,706,946 Differences between expected and actual experience of the total pension liability 243,794 -243,794 Change of assumptions (135,521)-(135,521) Benefit payments, including refunds of employee contributions (1,638,204)(1,638,204)- Contributions - employer -723,634 (723,634) Contributions - employee -243,012 (243,012) Net investment income -2,199,050 (2,199,050) Other (net transfer)-247,674 (247,674) Balances at December 31, 2016 $38,512,784 $33,616,356 $4,896,428 Plan fiduciary net position as a percentage of the total pension liability %87.29 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2017, the Village recognized pension expense of $1,029,102. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $157,130 $145,003 Assumption changes 55,136 87,346 Net difference between projected and actual earnings on pension plan investments 1,646,382 - Contributions subsequent to the measurement date 645,349 - Total $2,503,997 $232,349 Page 68 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2016. The remaining amounts reported as deferred outflows and inflows of resources related to pensions ($1,626,299) will be recognized in pension expense as follows: Year Ending December 31,Village 2017 $513,821 2018 596,494 2019 481,356 2020 34,628 Total $1,626,299 Police Pension Plan description. Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension Fund as provided for in Illinois Compiled Statutes. Tier 1 - 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 salary attached to the rank on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least 8 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 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 paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. Page 69 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or onehalf the annual unadjusted percentage increase in the CPI, whichever is less. Plan membership. At December 31, 2017, the Police Pension membership consisted of: Retirees and beneficiaries 35 Inactive, non-retired members 3 Active members 39 Total 77 Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2017 was 45.65% of annual covered payroll. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. Page 70 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2017 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.50% Projected salary increases 3.75% Cost-of-living adjustments 3.0% (1.25% for those hired on or after January 1, 2011) Mortality rates were based on the RP-2014 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.75% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $66,049,264 $58,193,184 $51,271,528 Plan fiduciary net position 37,779,816 37,779,816 37,779,816 Net pension liability $28,269,448 $20,413,368 $13,491,712 Page 71 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2017 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2016 $54,407,673 $33,534,050 $20,873,623 Service cost 833,296 -833,296 Interest on total pension liability 3,650,633 -3,650,633 Differences between expected and actual experience of the total pension liability (347,589)-(347,589) Change of assumptions 1,964,218 -1,964,218 Benefit payments, including refunds of employee contributions (2,315,047)(2,315,047)- Contributions - employer -1,748,025 (1,748,025) Contributions - employee -386,727 (386,727) Net investment income -4,461,837 (4,461,837) Administration -(35,776)35,776 Balances at December 31, 2017 $58,193,184 $37,779,816 $20,413,368 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2017, the Village recognized pension expense of $2,434,582. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $-$811,382 Assumption changes 2,268,089 - Net difference between projected and actual earnings on pension plan investments 1,052,894 1,790,088 Total $3,320,983 $2,601,470 Page 72 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($719,513) will be recognized in pension expense as follows: Year Ending December 31,Amount 2018 $557,860 2019 557,854 2020 (278,409) 2021 (117,792) Total $719,513 Firefighters' Pension Plan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive a monthly 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 one twelfth of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75% of such monthly salary. Employees with at least 10 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 paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase in the CPI, whichever is less. Page 73 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Plan membership. At December 31, 2017, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries 50 Inactive, non-retired members 2 Active members 32 Total 84 Contributions. Participants contribute a fixed percentage of their base salary to the plans. At December 31, 2017, the contribution percentage was 9.455%. If a participant leaves covered employment with less than 20 years of service, accumulated participant contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2017 was 71.27% of annual covered payroll. Net pension liability/(asset). The net pension liability/(asset) was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of significant accounting policies. The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. Page 74 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2017 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.50% Projected salary increases 3.75% Cost-of-living adjustments 3.0% (1.25% for those hired on or after January 1, 2011) Mortality rates were based on the RP-2014 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension Plan was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.75% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $56,303,318 $50,181,210 $44,724,786 Plan fiduciary net position 28,093,489 28,093,489 28,093,489 Net pension liability $28,209,829 $22,087,721 $16,631,297 Page 75 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2017 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2016 $49,274,222 $24,995,420 $24,278,802 Service cost 782,892 -782,892 Interest on total pension liability 3,287,875 -3,287,875 Differences between expected and actual experience of the total pension liability (768,292)-(768,292) Change of assumptions 300,225 -300,225 Benefit payments, including refunds of employee contributions (2,695,712)(2,695,712)- Contributions - employer -2,080,231 (2,080,231) Contributions - employee -295,477 (295,477) Net investment income -3,459,107 (3,459,107) Administration -(41,034)41,034 Balances at December 31, 2017 $50,181,210 $28,093,489 $22,087,721 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2017, the Village recognized pension expense of $2,263,987. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $65,502 $956,569 Assumption changes 884,310 - Net difference between projected and actual earnings on pension plan investments 765,670 1,551,863 Total $1,715,482 $2,508,432 Page 76 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($(792,950)) will be recognized in pension expense as follows: Year Ending December 31,Amount 2018 $122,669 2019 122,667 2020 (587,850) 2021 (450,436) Total $(792,950) PENSION SEGMENT INFORMATION Fiduciary Net Position Pension Trust Police Pension Firefighters' Pension Total Assets Cash and investments $98,741 $819,966 $918,707 Investments Certificates of deposit 624,851 250,263 875,114 Money markets 2,296,060 524,061 2,820,121 U.S. treasuries 299,019 797,883 1,096,902 U.S. agencies 3,960,719 5,456,070 9,416,789 State and local obligations 1,158,346 1,362,634 2,520,980 Corporate bonds 4,826,799 2,015,299 6,842,098 Mutual funds 24,401,322 16,808,482 41,209,804 Receivables Accrued interest 120,564 72,951 193,515 Prepaid items 3,162 1,445 4,607 Total Assets 37,789,583 28,109,054 65,898,637 Liabilities Accounts payable 9,767 15,565 25,332 Total Liabilities 9,767 15,565 25,332 Net Position Restricted for pension benefits $37,779,816 $28,093,489 $65,873,305 Page 77 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Changes in Plan Net Position Pension Trust Police Pension Firefighters' Pension Total Additions Contributions Employer $1,748,025 $2,080,231 $3,828,256 Employee 386,727 295,477 682,204 Other 1,657 -1,657 Total Contributions 2,136,409 2,375,708 4,512,117 Investment income Net appreciation in fair value 2,518,009 854,316 3,372,325 Interest 2,013,701 2,658,830 4,672,531 Total Investment income 4,531,710 3,513,146 8,044,856 Less investment expense 71,530 54,039 125,569 Net investment income 4,460,180 3,459,107 7,919,287 Total Additions 6,596,589 5,834,815 12,431,404 Deductions Benefits and refunds 2,315,047 2,695,712 5,010,759 Administrative 35,776 41,034 76,810 Total Deductions 2,350,823 2,736,746 5,087,569 Net Decrease in Net Position 4,245,766 3,098,069 7,343,835 Net Position, Beginning of Year 33,534,050 24,995,420 58,529,470 Net Position, End of Year $37,779,816 $28,093,489 $65,873,305 B.RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The Village participates in a public entity risk pool called IRMA to provide coverage for losses from (torts; theft of, damage to, or destruction of assets; errors and omission; and workers compensation). However, other risks, such as (health care of its employees) are accounted for and financed by the Village in an internal service fund - the Self-Insurance Fund. Self Insurance For medical and dental claims, the uninsured risk of loss is $85,000 per incident and $2,328,446 in the aggregate for a policy year. The Village has purchased commercial insurance for claims in excess of those amounts. Settled claims have not exceeded the commercial coverage in any of the past three years. Page 78 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) Self Insurance (cont.) All funds of the Village along with retirees, the Oak Brook Park District and COBRA participate in the risk management program. Premiums paid into the Self-Insurance Fund are based upon equivalent premium estimates.$200,897 was assigned for that reserve at year end, and is included in unrestricted net position of the internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities include an amount for claims that have been incurred but not reported. The Village does not allocate overhead costs or other nonincremental costs to the claims liability. Claims Liability Prior Year Current Year Unpaid claims - Beginning of Year $68,304 $42,919 Current year claims and changes in estimates (2,002,611)(2,136,760) Claim payments 1,977,226 2,294,738 Unpaid Claims - End of Year $42,919 $200,897 Public Entity Risk Pool IRMA The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois that have formed an association under the Illinois Intergovernmental Co-operations Statute to pool their risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’ compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The Village’s payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate funds. Each member assumes the first $2,500 of each occurrence, and IRMA has a mix of self-insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member 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. Page 79 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) Public Entity Risk Pool (cont.) IRMA (cont.) Initial contributions are determined each year based on the individual member’s eligible revenue as defined in the bylaws of IRMA and experience modification factors based on past member loss experience. Members have a contractual obligation to fund any deficit of IRMA attributable to any membership year during which they were a member. Supplemental contributions may be required to fund these deficits. C.COMMITMENTS AND CONTINGENCIES Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. The Village has active construction projects as of December 31, 2017. W ork that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. D.OTHER POSTEMPLOYMENT BENEFITS 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. 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 basis health insurance for the employee and their dependents for their lifetime. As of December 31, 2017, 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. Page 80 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) 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. 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, 2017, all retirees contributed $643,206 and the Village contributed $226,722. 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. The following table shows the components of the Village’s annual OPEB cost for the year, the amount actually contributed to plan, and changes in the Village’s net OPEB obligation to the Retiree Health Plan: Annual required contribution $643,206 Interest on net OPEB obligation 23,200 Adjustment to annual required contribution (35,699) Annual OPEB cost 630,707 Contributions made (226,722) Increase in net OPEB obligation (asset)403,985 Net OPEB Obligation (Asset) - Beginning of Year 651,678 Net OPEB Obligation (Asset) - End of Year $1,055,663 The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2017 and the two preceding years were as follows: Fiscal Year Ended Annual OPEB Cost Percentage of Annual OPEB Cost Contributed Net OPEB Obligation December 31, 2015 $439,792 61.22%$489,852 December 31, 2016 463,328 65.07%651,678 December 31, 2017 630,707 35.95%1,055,663 Page 81 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) The funded status of the plan as of December 31, 2017, the most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL)$5,464,098 Actuarial value of plan assets - Unfunded Actuarial Accrued Liability (UAAL)$5,464,098 Funded ratio (actuarial value of plan assets/AAL)-% Covered payroll (active plan members)$13,180,632 UAAL as a percentage of covered payroll 41.46% Actuarial valuations of an ongoing plan involve estimates for 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 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 the financial statements, presents multiyear 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. 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 benefit costs between the employer and plan members to that point. The 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, 2017 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 4% investment rate of return and an annual healthcare cost trend rate of 8% initially, reduced by decrements to an ultimate rate of 5%. Both rates include a 3% inflation assumption. The actuarial value of Retiree Health Plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a three-year period. The plan’s unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. The amortization period at December 31, 2017, was 30 years. Page 82 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) E.TAX ABATEMENT Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. The Village through its Promenade Tax Incremental Financing District has entered into a tax abatement agreement with a developer in the form of a tax incremental financing incentive payment to further the growth of the Village, facilitate the redevelopment of the entire Redevelopment Project Areas, stimulate redevelopment of other parcels in the Butterfield/22nd Street corridor, increase the assessed valuation of the real estate situated within the Village, increase the sales tax revenues realized by the Village, foster increased economic activity within the Village, and other be in the best interest of the Village by furthering the health, safety, and welfare of its residents and taxpayers. The abatement is authorized through the Redevelopment Project Area Plan Agreement. The developers pay property taxes as they become due, and after meeting the criteria established in the development agreements, are entitled to future incentive payments that directly correlate to the taxes paid. Agreement Description Calculation Method Developer Commitment 2017 Payments Promenade Redevelopment Project 100% incremental property taxes, 20% incremental sales taxes Construction of an upscale retail and commercial shopping center $454,380 Page 83 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2017 NOTE III - OTHER INFORMATION (cont.) F.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions Statement No. 80, Blending Requirements for Certain Component Units - an Amendment of GASB Statement No. 14 Statement No. 81, Irrevocable Split-Interest Agreements Statement No. 83, Certain Asset Retirement Obligations Statement No. 84, Fiduciary Activities Statement No. 85, Omnibus 2017 Statement No. 86, Certain Debt Extinguishment Issues Statement No. 87, Leases Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements When they become effective, application of these standards may restate portions of these financial statements. Page 84 R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N G E N E R A L F U N D General Fund –to account for resources traditionally associated with governments which are not accounted for in another fund. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual REVENUES Intergovernmental $14,325,335 $14,325,335 $13,640,557 $(684,778)$14,274,831 Utility taxes 5,638,000 5,638,000 6,033,358 395,358 5,967,345 Licenses and permits 1,711,750 1,711,750 2,205,571 493,821 1,882,598 Charges for services 1,064,250 1,064,250 1,106,204 41,954 1,075,234 Fines, forfeitures and penalties 153,590 153,590 144,833 (8,757)159,799 Investment income 125,000 125,000 190,254 65,254 136,186 Miscellaneous 419,275 419,275 405,933 (13,342)421,967 Total Revenues 23,437,200 23,437,200 23,726,710 289,510 23,917,960 EXPENDITURES CURRENT General government 4,446,385 5,008,843 4,757,533 251,310 4,063,322 Public safety 16,814,355 16,678,575 16,113,415 565,160 15,146,642 Public works 752,340 752,340 708,940 43,400 642,689 Culture and recreation 989,470 989,470 874,892 114,578 957,642 Debt Service Principal 280,000 280,000 280,000 -275,000 Interest and fiscal charges 10,625 10,625 9,800 825 19,541 Total Expenditures 23,293,175 23,719,853 22,744,580 975,273 21,104,836 Excess (deficiency) of revenues over (under) expenditures 144,025 (282,653)982,130 1,264,783 2,813,124 OTHER FINANCING SOURCES (USES) Transfers out (73,505)(73,505)-73,505 - Total Other Financing Sources (Uses)(73,505)(73,505)-73,505 - Net Change in Fund Balance $70,520 $(356,158)982,130 $1,338,288 2,813,124 FUND BALANCE - Beginning of Year 20,072,544 17,259,420 FUND BALANCE - END OF YEAR $21,054,674 $20,072,544 See independent auditors' report and accompanying notes to required supplementary information. Page 85 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - HOTEL/MOTEL TAX FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual REVENUES Hotel and motel taxes $1,266,000 $1,266,000 $1,265,583 $(417)$1,270,131 Investment income 22,000 22,000 42,060 20,060 17,993 Miscellaneous --44,095 44,095 - Total Revenues 1,288,000 1,288,000 1,351,738 63,738 1,288,124 EXPENDITURES CURRENT General government 93,400 93,400 93,400 -90,305 Culture and recreation 2,433,475 2,433,475 1,592,540 840,935 751,823 Total Expenditures 2,526,875 2,526,875 1,685,940 840,935 842,128 Net Change in Fund Balance $(1,238,875)$(1,238,875)(334,202)$904,673 445,996 FUND BALANCE - Beginning of Year 4,293,506 3,847,510 FUND BALANCE - END OF YEAR $3,959,304 $4,293,506 See independent auditors' report and accompanying notes to required supplementary information. Page 86 See independent auditors' report and accompanying notes to required supplementary information. Page 87 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Three Most Recent Fiscal Years 2015 2016 2017 Total pension liability Service cost 613,861$ 581,062$ 558,199$ Interest 2,465,082 2,615,047 2,706,946 Differences between expected and actual experience (770,401) (398,570) 243,794 Changes of assumptions 1,163,670 89,849 (135,521) Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) Net change in total pension liability 2,119,046 1,421,115 1,735,214 Total pension liability - beginning 33,237,409 35,356,455 36,777,570 Total pension liability - ending (a)35,356,455$ 36,777,570$ 38,512,784$ Plan fiduciary net position Employer contributions 749,983$ 715,089$ 723,634$ Employee contributions 238,409 238,021 243,012 Net investment income 1,874,762 159,375 2,199,050 Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) Other (net transfer)(294,611) 63,416 247,674 Net change in plan fiduciary net position 1,215,377 (290,372) 1,775,166 Plan fiduciary net position - beginning 30,916,185 32,131,562 31,841,190 Plan fiduciary net position - ending (b)32,131,562$ 31,841,190$ 33,616,356$ Employer's net pension liability - ending (a) - (b)3,224,893$ 4,936,380$ 4,896,428$ Plan fiduciary net position as a percentage of the total pension liability 90.88%86.58%87.29% Covered-employee payroll 5,168,916$ 5,230,241$ 5,400,260$ Employer's net pension liability as a percentage of covered-employee payroll 62.39%94.38%90.67% Notes to Schedule: The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. See independent auditors' report and accompanying notes to required supplementary information.Page 88 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Three Most Recent Fiscal Years 2015 2016 2017 Actuarially determined contribution 749,982$ 715,497$ 723,635$ Contributions in relation to the actuarially determined contribution (749,983) (715,089) (723,634) Contribution deficiency (excess)(1)$ 408$ 1$ Covered-employee payroll 5,289,017$ 5,230,241$ 5,400,260$ Contributions as a percentage of covered- employee payroll 14.18%13.67%13.40% Notes to Schedule: Valuation date: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation 2.75% Salary increases Investment rate of return 7.50% Retirement Age Mortality RP-2014 CHBCA Other information: There were no benefit changes during the year. 3.75% to 14.50% including inflation Experience-based table of rates that are specific to the type of eligibility condition Actuarially determined contribution rates are calculated as of December 31 of the prior year as that is the most recent information available from the plan. The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. Entry age normal Level percentage of payroll, closed 27 years 5-Year Smoothed Market See independent auditors' report and accompanying notes to required supplementary information.Page 89 2014 2015 2016 2017 Total pension liability Service cost 826,067$ 816,276$ 800,389$ 833,296$ Interest 3,141,175 3,338,238 3,563,145 3,650,633 Differences between expected and actual experience 1,279,682 (48,037) (856,825) (347,589) Changes of assumptions - 1,597,133 96,439 1,964,218 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) (2,315,047) Net change in total pension liability 2,958,231 3,356,924 1,238,309 3,785,511 Total pension liability - beginning 46,854,212 49,812,440 53,169,364 54,407,673 Total pension liability - ending (a)49,812,443$ 53,169,364$ 54,407,673$ 58,193,184$ Plan fiduciary net position Employer contributions 1,259,824$ 1,336,683$ 1,527,927$ 1,748,025$ Employee contributions 358,339 358,499 383,238 386,727 Net investment income 1,115,158 (429,967) 2,176,018 4,461,837 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) (2,315,047) Administration (47,609) (38,647) (39,522) (35,776) Net change in plan fiduciary net position 397,019 (1,120,118) 1,682,822 4,245,766 Plan fiduciary net position - beginning 32,574,327 32,971,346 31,851,228 33,534,050 Plan fiduciary net position - ending (b)32,971,346$ 31,851,228$ 33,534,050$ 37,779,816$ Village's net pension liability - ending (a) - (b)16,841,097$ 21,318,136$ 20,873,623$ 20,413,368$ Plan fiduciary net position as a percentage of the total pension liability 66.19%59.91%61.63%64.92% Covered-employee payroll 3,631,184$ 3,735,548$ 3,829,224$ 3,892,216$ Village's net pension liability as a percentage of covered- employee payroll 463.79%570.68%545.11%524.47% Notes to Schedule: VILLAGE OF OAK BROOK The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to reflect the most recent study conducted by the Illinois Department of Insurance. Last Four Fiscal Years SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND See independent auditors' report and accompanying notes to required supplementary information. Page 90 2008 2009 2010 2011 Actuarially determined contribution 617,619$ 958,641$ 944,808$ 885,339$ Contributions in relation to the actuarially determined contribution 617,618 958,641 944,808 674,170 Contribution deficiency (excess)1$ -$ -$ 211,169$ Covered-employee payroll N/A 3,288,064$ 3,433,002$ 3,288,064$ Contributions as a percentage of covered- employee payroll N/A 29.16%27.52%20.50% Notes to Schedule: N/A - Information is not available prior to 2009. Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Mortality rates were based on the RP-2014 BCA Mortality Table Entry-age normal Level percentage of payroll, closed 23 years Market value 3.75%, average, including inflation 50-70 2.50% 6.75%, net of pension plan investment expense, including inflation The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. POLICE PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS VILLAGE OF OAK BROOK Last Ten Fiscal Years See independent auditors' report and accompanying notes to required supplementary information. Page 91 2012 2013 2014 2015 2016 2017 969,024$ 1,205,519$ 1,485,673$ 1,550,233$ 1,708,330$ 1,748,025$ 977,367 1,171,537 1,259,824 1,259,824 1,527,927 1,748,025 (8,343)$ 33,982$ 225,849$ 290,409$ 180,403$ -$ 3,310,998$ 3,646,309$ 3,598,016$ 3,631,184$ 3,735,548$ 3,892,216$ 29.52%32.13%35.01%34.69%40.90%44.91% See independent auditors' report and accompanying notes to required supplementary information.Page 92 2014 2015 2016 2017 Annual money-weighted rate of return, net of investment expense 5.54%-1.32%6.89%13.35% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Last Four Fiscal Years SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND VILLAGE OF OAK BROOK See independent auditors' report and accompanying notes to required supplementary information.Page 93 2014 2015 2016 2017 Total pension liability Service cost 746,748$ 746,748$ 756,771$ 782,892$ Interest 2,926,848 3,040,301 3,229,650 3,287,875 Differences between expected and actual experience 507,637 163,758 (569,891) (768,292) Changes of assumptions - 1,474,675 90,432 300,225 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) (2,695,712) Net change in total pension liability 1,795,742 2,810,076 861,692 906,988 Total pension liability - beginning 43,806,712 45,602,454 48,412,530 49,274,222 Total pension liability - ending (a)45,602,454$ 48,412,530$ 49,274,222$ 50,181,210$ Plan fiduciary net position Employer contributions 1,570,742$ 1,414,530$ 1,801,476$ 2,080,231$ Employee contributions 267,458 269,349 273,775 295,477 Net investment income 1,178,816 (256,566) 1,794,320 3,459,107 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) (2,695,712) Administration (75,386) (46,351) (40,567) (41,034) Net change in plan fiduciary net position 556,139 (1,234,444) 1,183,734 3,098,069 Plan fiduciary net position - beginning 24,489,991 25,046,130 23,811,686 24,995,420 Plan fiduciary net position - ending (b)25,046,130$ 23,811,686$ 24,995,420$ 28,093,489$ Village's net pension liability - ending (a) - (b)20,556,324$ 24,600,844$ 24,278,802$ 22,087,721$ Plan fiduciary net position as a percentage of the total pension liability 54.92%49.18%50.73%55.98% Covered-employee payroll 2,818,219$ 2,812,001$ 2,918,844$ 3,085,809$ Village's net pension liability as a percentage of covered- employee payroll 729.41%874.85%831.80%715.78% Notes to Schedule: VILLAGE OF OAK BROOK The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to reflect the most recent study conducted by the Illinois Department of Insurance. Last Four Fiscal Years SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION FUND See independent auditors' report and accompanying notes to required supplementary information. Page 94 2008 2009 2010 2011 Actuarially determined contribution 671,683$ 839,550$ 933,925$ 1,082,677$ Contributions in relation to the actuarially determined contribution 671,683 839,550 933,925 995,110 Contribution deficiency (excess)-$ -$ -$ 87,567$ Covered-employee payroll N/A 2,668,624$ 2,573,691$ 2,668,624$ Contributions as a percentage of covered- employee payroll N/A 31.46%36.29%37.29% Notes to Schedule: N/A - Information is not available prior to 2009. Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality 50-70 Mortality rates were based on the RP-2014 BCA Mortality Table Level percentage of payroll, closed 23 years Market Value 2.50% 3.75%, average, including inflation 6.75%, net of pension plan investment expense, including inflation Entry-age normal The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. VILLAGE OF OAK BROOK Last Ten Fiscal Years FIREFIGHTERS' PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS See independent auditors' report and accompanying notes to required supplementary information. Page 95 2012 2013 2014 2015 2016 2017 1,065,173$ 1,144,966$ 1,698,405$ 1,826,637$ 2,015,441$ 2,080,231$ 1,001,528 1,057,081 1,570,742 1,414,530 1,801,476 2,080,231 63,645$ 87,885$ 127,663$ 412,107$ 213,965$ -$ 2,687,097$ 2,762,080$ 2,674,017$ 2,818,219$ 2,812,001$ 3,085,809$ 37.27%38.27%58.74%50.19%64.06%67.41% See independent auditors' report and accompanying notes to required supplementary information.Page 96 2014 2015 2016 2017 Annual money-weighted rate of return, net of investment expense 5.10%-1.05%7.62%13.95% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. VILLAGE OF OAK BROOK FIREFIGHTERS' PENSION FUND SCHEDULE OF INVESTMENT RETURNS Last Four Fiscal Years VILLAGE OF OAK BROOK OTHER POSTEMPLOYMENT BENEFIT PLAN SCHEDULE OF EMPLOYER CONTRIBUTIONS AND SCHEDULE OF FUNDING PROGRESS For the Year Ended December 31, 2017 Year Ended Annual Required Contribution Percentage Contributed 12/31/17 $643,206 35% 12/31/16 468,424 64% 12/31/15 445,025 61% Actuarial Valuation Date Actuarial Value of Assets (a) Actuarial Accrued Liability (AAL) - Projected Unit (b) Unfunded AAL (UAAL) (b-a) Funded Ratio (a/b) Covered Payroll (c) UAAL as a Percentage of Covered Payroll ((b-a)/c) 12/31/17 $-$5,464,098 $5,464,098 0%$13,180,632 41% 12/31/16 -5,168,368 5,168,368 0%10,870,787 48% 12/31/15 -5,011,682 5,011,682 0%9,362,402 54% Change in Assumptions The change in Village's unfunded actuarial accrued OPEB liability is due to several factors, including: The discount rate as of the Measurement Date has been updated to be based on a yield for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale) tax-exempt, high quality 20-year municipal bonds. The prior valuation used a discount rate of 4.50%. The current valuation uses a discount rate of 3.56% as of December 31, 2017. This change has caused an increase in liabilities. The discount rate will be updated annually to reflect market conditions as of the Measurement Date. The mortality table has been updated to RPH-2017 Total Dataset Mortality Table fully generational using Scale MP-2017 for general active employees and healthy retirees, RPH-2017 Blue Collar Mortality Table fully generational using Scale MP-2017 for Police and Fire active employees, and RPH-2017 Disabled Retiree Mortality Table fully generational using Scale MP-2017 for disabled retirees. This change caused a slight decrease in liabilities. For general employees, this withdrawal rate, retirement rate, and payroll growth assumption have all been updated to follow the most recent Illinois Municipal Retirement Fund (IMRF) valuation as of December 31, 2016. Medical/Rx rates have been reset to an initial rate of 8.0% decreasing by 0.5% annually to an ultimate rate of 5.0%. This change has caused an increase in liabilities. See independent auditors' report and accompanying notes to required supplementary information. Page 97 VILLAGE OF OAK BROOK NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2017 BUDGETARY INFORMATION 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 and Internal Service Funds are on the accrual basis and a current financial resources measurement focus except the Village does not budget depreciation or the impact from the net pension liability but does budget capital outlay and pension payments. 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 does not adopt a budget for the Foreign Fire Insurance Fund or the Pension Trust Funds. 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. See independent auditors' report. Page 98 S U P P L E M E N T A R Y I N F O R M A T I O N VILLAGE OF OAK BROOK SCHEDULE OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 with Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual INTERGOVERNMENTAL Municipal sales tax $13,048,000 $13,048,000 $12,381,929 $(666,071)$12,969,830 Illinois state income and use tax 997,500 997,500 927,953 (69,547)965,261 Corporate personal property replacement taxes 252,735 252,735 298,832 46,097 279,782 York Township road and bridge tax 15,000 15,000 24,462 9,462 13,678 Grants 12,100 12,100 7,381 (4,719)46,280 Total Intergovernmental 14,325,335 14,325,335 13,640,557 (684,778)14,274,831 Utility taxes 5,638,000 5,638,000 6,033,358 395,358 5,967,345 Licenses and permits 1,711,750 1,711,750 2,205,571 493,821 1,882,598 Charges for services 1,064,250 1,064,250 1,106,204 41,954 1,075,234 Fines, forfeitures and penalties 153,590 153,590 144,833 (8,757)159,799 Investment income 125,000 125,000 190,254 65,254 136,186 MISCELLANEOUS Franchise fees 207,200 207,200 216,884 9,684 222,899 Other 212,075 212,075 189,049 (23,026)199,068 Total Miscellaneous 419,275 419,275 405,933 (13,342)421,967 TOTAL REVENUES $23,437,200 $23,437,200 $23,726,710 $289,510 $23,917,960 Page 99 Page 100 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual GENERAL GOVERNMENT Legislative and general management Board of Trustees Personnel 79,605$ 79,605$ 77,284$ 2,321$ 75,074$ Materials and supplies 3,900 3,900 436 3,464 472 Operation and contractual 63,500 63,500 49,630 13,870 49,136 Total board of trustees 147,005 147,005 127,350 19,655 124,682 Village clerk Personnel 179,555 179,555 166,984 12,571 149,678 Materials and supplies 3,135 3,135 2,602 533 1,925 Operation and contractual 17,000 17,000 5,040 11,960 11,310 Total Village clerk 199,690 199,690 174,626 25,064 162,913 Legal Personnel - - - - 30,068 Materials and supplies 100 100 288 (188) 68 Operation and contractual 293,000 293,000 254,554 38,446 230,897 Total legal 293,100 293,100 254,842 38,258 261,033 General management Personnel 305,730 309,980 304,713 5,267 308,567 Materials and supplies 57,675 53,425 43,297 10,128 44,873 Operation and contractual 31,990 31,990 21,226 10,764 21,505 Total general management 395,395 395,395 369,236 26,159 374,945 Human resources Personnel 159,665 170,795 140,930 29,865 140,154 Materials and supplies 2,550 2,550 614 1,936 91 Operation and contractual 71,290 55,185 29,418 25,767 46,171 Total human resources 233,505 228,530 170,962 57,568 186,416 Risk management Personnel 23,320 23,320 20,532 2,788 17,074 Materials and supplies 1,000 1,000 - 1,000 - Operation and contractual 470,000 470,000 447,255 22,745 407,794 Total risk management 494,320 494,320 467,787 26,533 424,868 Emergency management Personnel 600 600 - 600 111 Materials and supplies 2,750 5,425 4,296 1,129 9,104 Operation and contractual 22,640 19,965 13,860 6,105 11,471 Total emergency management 25,990 25,990 18,156 7,834 20,686 Information systems Personnel 350,520 307,440 307,152 288 328,255 Materials and supplies 29,600 36,490 36,596 (106) 25,352 Operation and contractual 449,330 436,880 436,867 13 277,222 Capital 209,610 315,270 315,269 1 106,369 Total information systems 1,039,060 1,096,080 1,095,884 196 737,198 2017 Budgeted Amounts Page 101 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual 2017 Budgeted Amounts GENERAL GOVERNMENT (continued) Legislative and general management (continued) Customer service Personnel 55,190$ 53,435$ 46,111$ 7,324$ 50,361$ Operation and contractual - 1,755 1,753 2 - Total customer service 55,190 55,190 47,864 7,326 50,361 Total legislative and general management 2,883,255 2,935,300 2,726,707 208,593 2,343,102 Community development management Administration Personnel 352,755 377,575 377,445 130 285,927 Materials and supplies 2,690 2,690 589 2,101 1,201 Operation and contractual 41,850 17,030 17,447 (417) 56,426 Total administration 397,295 397,295 395,481 1,814 343,554 Code enforcement Personnel 527,215 527,215 518,912 8,303 555,158 Materials and supplies 5,325 5,325 3,897 1,428 5,986 Operation and contractual 52,275 52,275 40,100 12,175 38,920 Total code enforcement 584,815 584,815 562,909 21,906 600,064 Total community development management 982,110 982,110 958,390 23,720 943,618 Financial services Financial services management Personnel 138,045 138,045 136,075 1,970 103,665 Materials and supplies 50 50 - 50 23 Operation and contractual 56,975 56,975 53,769 3,206 51,357 Total financial services management 195,070 195,070 189,844 5,226 155,045 Accounting and reporting Personnel 308,350 308,350 304,942 3,408 410,733 Materials and supplies 4,540 4,540 2,464 2,076 3,933 Operation and contractual 28,500 28,500 28,445 55 23,218 Total accounting and reporting 341,390 341,390 335,851 5,539 437,884 PSEBA benefits Personnel 42,300 42,300 41,136 1,164 39,827 Total PSEBA benefits 42,300 42,300 41,136 1,164 39,827 Page 102 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual 2017 Budgeted Amounts GENERAL GOVERNMENT (continued) Financial services (continued) Purchasing Personnel 97,460$ 97,460$ 95,321$ 2,139$ 92,674$ Materials and supplies 21,300 21,300 16,375 4,925 12,159 Operation and contractual - - - - 1,827 Total purchasing 118,760 118,760 111,696 7,064 106,660 Total financial services 697,520 697,520 678,527 18,993 739,416 Municipal building improvement Operation and contractual 25,000 - - - - Capital 347,500 882,913 882,909 4 534,591 Total municipal building improvement 372,500 882,913 882,909 4 534,591 Expenditure reimbursements paid to other funds 128,300 128,300 128,300 - 130,620 Subtotal general government 5,063,685 5,626,143 5,374,833 251,310 4,691,347 Less reimbursements from other funds (617,300) (617,300) (617,300) - (628,025) Total general government 4,446,385 5,008,843 4,757,533 251,310 4,063,322 PUBLIC SAFETY Police department Police services management Personnel 551,645 551,645 540,405 11,240 525,922 Materials and supplies 3,500 3,500 2,424 1,076 2,907 Operation and contractual 56,380 56,380 58,485 (2,105) 52,683 Total police services management 611,525 611,525 601,314 10,211 581,512 Police field services Personnel 4,931,855 4,925,485 4,759,627 165,858 4,511,962 Materials and supplies 15,160 15,160 14,882 278 7,779 Operation and contractual 358,850 358,850 358,751 99 346,551 Capital - - - - 13,685 Total police field services 5,305,865 5,299,495 5,133,260 166,235 4,879,977 Police auxiliary services Personnel 86,890 93,260 93,392 (132) 87,413 Operation and contractual 1,875 1,875 1,632 243 1,632 Total police auxiliary services 88,765 95,135 95,024 111 89,045 Support services general Personnel 711,475 711,475 702,127 9,348 679,334 Materials and supplies 70,955 70,955 64,348 6,607 53,555 Operation and contractual 2,850 2,850 2,562 288 3,244 Total support services general 785,280 785,280 769,037 16,243 736,133 Support services detectives Personnel 1,025,960 1,025,960 996,144 29,816 953,737 Materials and supplies 2,250 2,250 2,276 (26) 2,922 Operation and contractual 51,580 51,580 49,996 1,584 49,200 Total support services detectives 1,079,790 1,079,790 1,048,416 31,374 1,005,859 Page 103 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual 2017 Budgeted Amounts PUBLIC SAFETY (continued) Police department (continued) Police support services records Personnel 229,325$ 229,325$ 227,604$ 1,721$ 221,936$ Materials and supplies 24,700 24,700 18,323 6,377 25,581 Operation and contractual 484,005 484,005 439,679 44,326 433,590 Total support services records 738,030 738,030 685,606 52,424 681,107 Total police department 8,609,255 8,609,255 8,332,657 276,598 7,973,633 Fire department Fire, rescue, and EMS operations Personnel 5,998,720 5,946,675 5,835,994 110,681 5,400,448 Materials and supplies 51,745 51,745 39,048 12,697 43,842 Operation and contractual 321,585 321,585 307,668 13,917 302,872 Capital 213,000 213,000 168,584 44,416 36,179 Total fire, rescue, and EMS operations 6,585,050 6,533,005 6,351,294 181,711 5,783,341 Fire services management Personnel 344,120 344,120 346,269 (2,149) 350,451 Materials and supplies 8,800 8,800 2,213 6,587 5,587 Operation and contractual 203,565 203,565 187,600 15,965 183,015 Total fire services management 556,485 556,485 536,082 20,403 539,053 Special teams operations Materials and supplies 10,235 10,235 6,640 3,595 5,988 Operation and contractual 8,950 8,950 8,618 332 7,381 Total special teams operations 19,185 19,185 15,258 3,927 13,369 Rescue and fire training Personnel 57,205 57,205 41,246 15,959 28,469 Materials and supplies 925 925 - 925 10 Operation and contractual 1,000 1,000 - 1,000 - Total rescue and fire training 59,130 59,130 41,246 17,884 28,479 Emergency medical services Personnel 37,495 37,495 27,785 9,710 28,858 Materials and supplies 23,600 23,600 21,320 2,280 17,729 Operation and contractual 623,955 623,955 619,425 4,530 600,842 Capital 35,200 35,200 34,450 750 51,167 Total emergency medical services 720,250 720,250 702,980 17,270 698,596 Fire prevention and public safety Personnel 248,235 164,500 122,985 41,515 101,704 Materials and supplies 9,965 9,965 6,344 3,621 7,242 Operation and contractual 6,800 6,800 4,569 2,231 1,225 Total fire prevention and public safety 265,000 181,265 133,898 47,367 110,171 Total fire department 8,205,100 8,069,320 7,780,758 288,562 7,173,009 Total public safety 16,814,355 16,678,575 16,113,415 565,160 15,146,642 Page 104 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual 2017 Budgeted Amounts PUBLIC WORKS Mosquito control Operation and contractual 73,320$ 73,320$ 64,687$ 8,633$ 66,992$ Total mosquito control 73,320 73,320 64,687 8,633 66,992 Buildings and grounds Personnel 176,925 122,405 114,507 7,898 111,716 Materials and supplies 46,350 46,350 39,744 6,606 28,145 Operation and contractual 225,760 280,280 267,007 13,273 227,911 Capital - - - - 23,535 Total buildings and grounds 449,035 449,035 421,258 27,777 391,307 Forestry Personnel 15,905 7,505 3,753 3,752 4,533 Materials and supplies 3,570 3,570 338 3,232 2,616 Operation and contractual 210,510 218,910 218,904 6 177,241 Total forestry 229,985 229,985 222,995 6,990 184,390 Total public works 752,340 752,340 708,940 43,400 642,689 CULTURE AND RECREATION Library general operations Personnel 384,860 384,860 290,715 94,145 384,814 Materials and supplies 15,530 15,530 10,584 4,946 10,934 Operation and contractual 77,250 77,250 74,860 2,390 69,334 Total library general operations 477,640 477,640 376,159 101,481 465,082 Library technical services Personnel 100,115 100,115 96,529 3,586 95,717 Materials and supplies 3,300 3,300 3,300 - 3,140 Operation and contractual 6,415 6,415 6,414 1 4,311 Total library technical services 109,830 109,830 106,243 3,587 103,168 Library reference and adult services Personnel 157,705 157,705 152,085 5,620 153,760 Materials and supplies 101,000 101,000 100,475 525 101,789 Operation and contractual 2,000 2,000 2,000 - 2,493 Total library reference and adult services 260,705 260,705 254,560 6,145 258,042 Library youth services Personnel 109,465 109,465 106,475 2,990 99,917 Materials and supplies 28,330 28,330 27,964 366 28,434 Operation and contractual 3,500 3,500 3,491 9 2,999 Total library youth services 141,295 141,295 137,930 3,365 131,350 Total culture and recreation 989,470 989,470 874,892 114,578 957,642 DEBT SERVICE Principal 280,000 280,000 280,000 - 275,000 Interest and fiscal charges 10,625 10,625 9,800 825 19,541 Total debt service 290,625 290,625 289,800 825 294,541 Total expenditures 23,293,175$ 23,719,853$ 22,744,580$ 975,273$ 21,104,836$ N O N M A J O R G O V E R N M E N T A L F U N D S N O N M A J O R G O V E R N M E N T A L F U N D S SPECIAL REVENUE FUNDS Motor Fuel Tax Fund –to account for state gasoline tax allocations restricted for local roadway program expenditures. Foreign Fire Insurance Tax Fund –to account for foreign fire insurance tax revenue restricted for the purchase of items for the benefit of the fire department. VILLAGE OF OAK BROOK COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS As of December 31, 2017 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds ASSETS Cash and investments $568,661 $244,054 $812,715 Receivables Allotments 17,419 -17,419 Accrued interest 2,974 -2,974 Prepaid items -775 775 TOTAL ASSETS $589,054 $244,829 $833,883 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Fund Balances Nonspendable for prepaid items -775 775 Restricted for highways and streets 589,054 -589,054 Restricted for fire department -244,054 244,054 Total Fund Balances 589,054 244,829 833,883 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $589,054 $244,829 $833,883 Page 105 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2017 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds REVENUES Intergovernmental $201,068 $81,651 $282,719 Investment income 9,055 58 9,113 Miscellaneous -1,770 1,770 Total Revenues 210,123 83,479 293,602 EXPENDITURES Current Public safety -41,833 41,833 Total Expenditures -41,833 41,833 Excess (deficiency) of revenues over expenditures 210,123 41,646 251,769 OTHER FINANCING USES Transfers out (548,454)-(548,454) Total Other Financing Uses (548,454)-(548,454) Net Change in Fund Balances (338,331)41,646 (296,685) FUND BALANCES - Beginning of Year 927,385 203,183 1,130,568 FUND BALANCES - END OF YEAR $589,054 $244,829 $833,883 Page 106 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX FUND - NONMAJOR SPECIAL REVENUE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual REVENUES Intergovernmental $206,200 $206,200 $201,068 $(5,132)$200,706 Investment income 3,000 3,000 9,055 6,055 7,444 Total Revenues 209,200 209,200 210,123 923 208,150 EXPENDITURES Total Expenditures ----- Excess (deficiency) of revenues over (under) expenditures 209,200 209,200 210,123 923 208,150 OTHER FINANCING SOURCES (USES) Transfers out (561,765)(561,765)(548,454)13,311 (516,221) Total Other Financing Sources (Uses)(561,765)(561,765)(548,454)13,311 (516,221) Net Change in Fund Balance $(352,565)$(352,565)(338,331)$14,234 (308,071) FUND BALANCE - Beginning of Year 927,385 1,235,456 FUND BALANCE - END OF YEAR $589,054 $927,385 Page 107 M A J O R G O V E R N M E N T A L F U N D S Infrastructure Fund –to account for revenues restricted for and expenditures relative to the construction and maintenance of roadways, drainage and safety pathway sys tems. Promenade TIF Fund –to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual REVENUES Intergovernmental - grants $-$-$3,142 $3,142 $25,804 Non-home rule sales tax 5,982,000 5,982,000 5,581,924 (400,076)5,991,262 Investment income 27,500 27,500 67,434 39,934 39,800 Miscellaneous 5,000 5,000 5,745 745 - Total Revenues 6,014,500 6,014,500 5,658,245 (356,255)6,056,866 EXPENDITURES GENERAL GOVERNMENT Geographic information systems Personnel 19,200 19,200 17,876 1,324 18,169 Materials and supplies 1,700 1,700 2,408 (708)1,083 Operation and contractual 153,530 153,530 144,644 8,886 158,171 Capital ----8,590 Total geographic information systems 174,430 174,430 164,928 9,502 186,013 Total General Government 174,430 174,430 164,928 9,502 186,013 PUBLIC WORKS Management Personnel 412,880 412,880 406,346 6,534 354,604 Materials and supplies 4,155 4,155 2,083 2,072 2,031 Operation and contractual 212,590 235,985 235,936 49 159,021 Total management $629,625 $653,020 $644,365 $8,655 $515,656 Page 108 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual Streets - general salaries Personnel $705,535 $682,140 $654,964 $27,176 $650,415 Materials and supplies 4,900 4,900 4,646 254 3,138 Operation and contractual 2,965 2,965 3,233 (268)2,667 Total streets - general salaries 713,400 690,005 662,843 27,162 656,220 Streets and traffic maintenance Materials and supplies 224,640 224,640 24,811 199,829 24,341 Operation and contractual 498,245 498,245 422,003 76,242 421,710 Capital 10,000 10,000 8,792 1,208 - Total streets and traffic maintenance 732,885 732,885 455,606 277,279 446,051 Snow removal Personnel 99,785 99,785 15,303 84,482 54,391 Materials and supplies 84,750 60,070 41,540 18,530 75,210 Operation and contractual 85,355 85,355 77,835 7,520 73,621 Capital -24,680 24,680 -- Total snow removal 269,890 269,890 159,358 110,532 203,222 Drainage maintenance Materials and supplies 20,000 13,355 13,352 3 5,141 Operation and contractual 100,260 112,135 111,868 267 82,437 Capital 20,000 14,770 13,487 1,283 - Total drainage maintenance 140,260 140,260 138,707 1,553 87,578 Page 109 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual Safe pathway maintenance Materials and supplies $9,375 $9,375 $2,623 $6,752 $7,273 Operation and contractual 39,910 39,910 37,940 1,970 27,430 Total safe pathway maintenance 49,285 49,285 40,563 8,722 34,703 Engineering and capital projects engineering Personnel 236,990 69,065 68,602 463 493,885 Materials and supplies 1,575 1,575 282 1,293 1,052 Operation and contractual 14,580 287,600 287,047 553 39,856 Total engineering and capital projects engineering 253,145 358,240 355,931 2,309 534,793 Roadway improvements Operation and contractual 25,000 224,795 224,792 3 485,134 Intergovernmental agreements 1,725,000 1,420,110 395,833 1,024,277 2,474,646 Reimbursements from other funds (176,635)(176,635)(176,635)-(180,035) Expenditure reimbursement paid to other funds 162,500 162,500 162,500 -155,000 Total roadway improvements 1,735,865 1,630,770 606,490 1,024,280 2,934,745 Total Public Works 4,524,355 4,524,355 3,063,863 1,460,492 5,412,968 Total Expenditures 4,698,785 4,698,785 3,228,791 1,469,994 5,598,981 Excess (deficiency) of revenues over (under) expenditures 1,315,715 1,315,715 2,429,454 1,113,739 457,885 Page 110 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual OTHER FINANCING SOURCES (USES) Transfers in $561,765 $561,765 $548,454 $(13,311)$516,221 Total Other Financing Sources (Uses)561,765 561,765 548,454 (13,311)516,221 Net Change in Fund Balance $1,877,480 $1,877,480 2,977,908 $1,100,428 974,106 FUND BALANCE - Beginning of Year 6,766,002 5,791,896 FUND BALANCE - END OF YEAR $9,743,910 $6,766,002 Page 111 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - PROMENADE TIF FUND - MAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual REVENUES TAXES Municipal sales tax $100,500 $100,500 $99,281 $(1,219)$103,007 Property taxes 355,000 355,000 385,018 30,018 354,829 Investment income 100 100 925 825 389 Total Revenues 455,600 455,600 485,224 29,624 458,225 EXPENDITURES Current General government 4,070 4,070 3,958 112 3,938 Debt service Principal 177,000 177,000 177,000 -145,000 Interest and fiscal charges 277,380 277,380 277,380 -290,220 Total Expenditures 458,450 458,450 458,338 112 439,158 Net Change in Fund Balance $(2,850)$(2,850)26,886 $29,736 19,067 FUND BALANCE - Beginning of Year 249,278 230,211 FUND BALANCE - END OF YEAR $276,164 $249,278 Page 112 P R O P R I E T A R Y F U N D S M A J O R E N T E R P R I S E F U N D S 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 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATERW ORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual OPERATING REVENUES Charges for services Water sales $9,143,000 $9,143,000 $9,477,096 $334,096 $8,543,371 Unmetered sales 25,000 25,000 50,422 25,422 41,794 Water tap on charges 30,000 30,000 187,680 157,680 69,573 Meter fees and special services 66,000 66,000 53,551 (12,449)63,634 Miscellaneous 71,500 71,500 103,252 31,752 93,756 Total Operating Revenues 9,335,500 9,335,500 9,872,001 536,501 8,812,128 OPERATING EXPENSES Operation of facilities 11,090,115 11,090,115 7,325,897 (3,764,218)7,369,401 Depreciation and amortization --551,415 551,415 590,178 Total Operating Expenses 11,090,115 11,090,115 7,877,312 (3,212,803)7,959,579 Operating income (1,754,615)(1,754,615)1,994,689 3,749,304 852,549 NON-OPERATING REVENUES (EXPENSES) Investment income 10,000 10,000 41,152 31,152 12,631 Grants --3,386 3,386 - Total Non-Operating Revenues (Expenses)10,000 10,000 44,538 34,538 12,631 Change in net position $(1,744,615)$(1,744,615)2,039,227 $3,783,842 865,180 NET POSITION - Beginning of Year 21,427,033 20,561,853 NET POSITION - END OF YEAR $23,466,260 $21,427,033 Page 113 Page 114 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - WATERWORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operation of facilities Public works - water operations Personnel 835,110$ 843,750$ 767,512$ 76,238$ 845,108$ Materials and supplies 70,660 492,350 487,637 4,713 150,572 Operation and contractual 6,547,735 6,532,350 5,566,987 965,363 5,888,340 Reimbursements for general fund services 401,600 401,600 401,600 - 423,720 Total public works - water operations 7,855,105 8,270,050 7,223,736 1,046,314 7,307,740 Capital improvements Capital outlay 3,235,010 2,820,065 57,700 2,762,365 - Total capital improvements 3,235,010 2,820,065 57,700 2,762,365 - Total operating expenses excluding depreciation and pension expense - Budgetary basis 11,090,115$ 11,090,115$ 7,281,436 3,808,679$ 7,307,740 Adjustments to GAAP Basis Capital expenditures (57,700) - Pension expense - IMRF 84,684 51,492 OPEB expense 17,477 10,169 Depreciation and amortization 551,415 590,178 Total adjustments to GAAP basis 595,876 651,839 Total operating expenses 7,877,312$ 7,959,579$ 2017 Budgeted Amounts Page 115 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual Revenues Charges for services Golf 1,894,300$ 1,901,300$ 1,984,230$ 82,930$ 2,036,729$ Swimming and tennis 402,330 402,330 332,555 (69,775) 293,431 Special events 180,000 180,000 188,375 8,375 185,196 Rentals and commissions 430,000 430,000 462,458 32,458 449,752 Food and beverage 362,850 421,375 446,193 24,818 418,749 Total operating revenues 3,269,480 3,335,005 3,413,811 78,806 3,383,857 Operating expenses including depreciation Golf club 1,751,800 1,635,000 1,833,899 (198,899) 1,762,802 Swimming and tennis 445,080 422,270 516,686 (94,416) 585,938 Special events 190,000 172,855 172,830 25 189,533 Rentals and commissions 596,940 636,980 602,075 34,905 460,047 Food and beverage 361,665 387,880 387,967 (87) 380,874 Total operating expenses 3,345,485 3,254,985 3,513,457 (258,472) 3,379,194 Operating income (loss)(76,005) 80,020 (99,646) 337,278 4,663 Non-operating revenues (expenses) Investment income 2,500 - - - 3,374 Gain (loss) on disposal of capital assets - - (1,088) 1,088 (2,512) Total non-operating revenues (expenses)2,500 - (1,088) 1,088 862 Net income (loss) before transfers (73,505) 80,020 (100,734) 338,366 5,525 Transfers Transfers in 73,505 73,505 - (73,505) 32,000 Transfers out - (510,000) (431,457) 78,543 - Total Other Financing Sources (Uses)73,505 (436,495) (431,457) 5,038 32,000 Change in net position -$ (356,475)$ (532,191) 343,404$ 37,525 NET POSITION - Beginning of Year 12,342,179 12,304,654 NET POSITION - END OF YEAR 11,809,988$ 12,342,179$ VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 31, 2017 2017 Budgeted Amount Page 116 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual Charges for Services Golf Fees 1,422,800$ 1,515,800$ 1,586,257$ 70,457$ 1,529,827$ Golf surcharge 110,000 - - - 117,970 Memberships 166,000 180,000 189,963 9,963 179,987 Merchandise sales 195,500 205,500 193,986 (11,514) 208,845 Miscellaneous - - 14,024 14,024 100 Total golf 1,894,300 1,901,300 1,984,230 82,930 2,036,729 Swimming and tennis Fees 122,000 122,000 105,522 (16,478) 62,313 Memberships 277,580 277,580 225,190 (52,390) 224,531 Merchandise sales 2,550 2,550 - (2,550) - Miscellaneous 200 200 1,843 1,643 6,587 Total swimming and tennis 402,330 402,330 332,555 (69,775) 293,431 Special events Independence Day/Taste of Oak Brook 180,000 180,000 188,375 8,375 185,196 Total special events 180,000 180,000 188,375 8,375 185,196 Rentals and commissions Open field rental 265,000 265,000 268,258 3,258 281,081 Other rental income 165,000 165,000 194,200 29,200 168,671 Total rentals and commissions 430,000 430,000 462,458 32,458 449,752 Food and beverage Food sales 163,850 175,375 177,514 2,139 174,964 Beverage sales 199,000 246,000 268,679 22,679 243,785 Total food and beverage 362,850 421,375 446,193 24,818 418,749 Total Operating Revenues 3,269,480$ 3,335,005$ 3,413,811$ 78,806$ 3,383,857$ VILLAGE OF OAK BROOK SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 31, 2017 2017 Budgeted Amounts Page 117 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operations - golf club Golf club general operations Personnel 514,250$ 479,610$ 475,424$ 4,186$ 507,337$ Materials and supplies 177,550 168,330 161,486 6,844 186,441 Operation and contractual 186,390 219,675 218,479 1,196 144,101 Capital 100,000 26,190 19,083 7,107 7,915 Total golf club general operations 978,190 893,805 874,472 19,333 845,794 Golf club range operations Personnel 64,330 77,995 77,720 275 67,778 Materials and supplies 17,000 11,245 11,243 2 9,115 Operation and contractual 14,700 14,700 14,077 623 13,200 Capital - 8,530 8,526 4 6,165 Total golf club range operations 96,030 112,470 111,566 904 96,258 Golf cart operations Personnel 24,760 51,720 51,715 5 48,092 Materials and supplies 1,400 4,810 4,437 373 53,152 Operation and contractual 7,500 7,500 6,054 1,446 7,262 Total golf cart operations 33,660 64,030 62,206 1,824 108,506 Golf course maintenance Personnel 552,620 474,105 468,748 5,357 450,276 Materials and supplies 227,300 214,350 209,734 4,616 196,945 Operation and contractual 40,200 52,440 46,781 5,659 37,378 Capital 30,000 30,000 28,458 1,542 56,287 Total golf course maintenance 850,120 770,895 753,721 17,174 740,886 Less reimbursement from other funds (206,200) (206,200) (186,200) (20,000) (206,200) Total operations - golf club 1,751,800 1,635,000 1,615,765 19,235 1,585,244 Operations - swimming and tennis General operations Personnel 136,020 157,850 163,808 (5,958) 134,531 Materials and supplies 36,000 28,990 21,391 7,599 19,129 Operation and contractual 140,555 127,995 123,735 4,260 113,796 Capital 15,000 830 - 830 - Subtotal general operations 327,575 315,665 308,934 6,731 267,456 Less reimbursement from other funds (32,000) (32,000) (32,000) - - Less overhead allocation (327,575) (327,575) (330,092) 2,517 (276,915) Total general operations (32,000) (43,910) (53,158) 9,248 (9,459) 2017 Budgeted Amounts Page 118 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual 2017 Budgeted Amounts Operating expenses excluding depreciation and pension expense (continued) Swimming operations Personnel 46,000$ 36,000$ 36,822$ (822)$ 33,866$ Materials and supplies 21,250 42,185 42,030 155 9,837 Operation and contractual 152,700 173,140 171,564 1,576 192,228 Capital 31,000 - - - 24,200 Overhead allocation 117,925 117,925 118,833 (908) 119,079 Total swimming operations 368,875 369,250 369,249 1 379,210 Tennis operations - outdoor Personnel 32,295 21,020 21,906 (886) 47,894 Materials and supplies 7,850 7,850 4,042 3,808 1,691 Operation and contractual 35,300 35,300 34,529 771 33,100 Overhead allocation 32,760 32,760 33,009 (249) 55,381 Total tennis operations - outdoor 108,205 96,930 93,486 3,444 138,066 Total operations - swimming and tennis 445,080 422,270 409,577 12,693 507,817 Special events Operation and contractual 190,000 172,855 172,830 25 189,533 Total special events 190,000 172,855 172,830 25 189,533 Rentals and commissions Personnel 107,745 99,520 101,959 (2,439) 103,131 Materials and supplies 12,100 34,810 31,481 3,329 1,580 Operation and contractual 263,310 288,865 291,142 (2,277) 263,495 Capital 50,000 50,000 45,725 4,275 - Overhead allocation 163,785 163,785 165,046 (1,261) 85,840 Total rentals and commissions 596,940 636,980 635,353 1,627 454,046 Food and beverage Poolside grill Personnel 19,900 19,900 19,790 110 19,272 Materials and supplies 29,170 55,385 55,015 370 27,857 Operation and contractual 4,900 4,900 2,122 2,778 3,685 Overhead allocation 13,105 13,105 13,204 (99) 16,615 Total poolside grill 67,075 93,290 90,131 3,159 67,429 Golf clubhouse Personnel 111,265 111,265 113,936 (2,671) 113,316 Materials and supplies 171,250 171,250 160,539 10,711 171,439 Operation and contractual 12,075 12,075 7,437 4,638 13,025 Total golf clubhouse 294,590 294,590 281,912 12,678 297,780 Total food and beverage 361,665 387,880 372,043 15,837 365,209 Page 119 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Variance With 2016 Original Final Actual Final Budget Actual 2017 Budgeted Amounts Total operating expenses - budgetary basis 3,345,485$ 3,254,985$ 3,205,568 49,417$ 3,101,849 Adjustments to GAAP basis Capital expenditures (101,792) (94,567) Depreciation expense - golf 193,872 190,737 Depreciation expense - swimming and tennis 93,384 92,862 Depreciation expense - food and beverage 11,235 11,227 Pension expense - IMRF 72,912 68,519 OPEB expense 38,278 8,567 Total adjustments to GAAP basis 307,889 277,345 Total Operating Expenses 3,513,457$ 3,379,194$ N O N M A J O R E N T E R P R I S E F U N D Golf Surcharge Fund –to account for revenue collected related to the $3 surcharge on each golf round played. Funds are accumulated in this fund and used on golf course improvements. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GOLF SURCHARGE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual OPERATING REVENUES Charges for services $-$117,000 $119,400 $2,400 $- Total Operating Revenues -117,000 119,400 2,400 - OPERATING EXPENSES Total Operating Expenses ----- Operating income -117,000 119,400 2,400 - NON-OPERATING REVENUES (EXPENSES) Investment income -2,500 5,013 2,513 - Total Non-Operating Revenues (Expenses)-2,500 5,013 2,513 - TRANSFERS Transfers in -510,000 431,457 78,543 - Net Transfers -510,000 431,457 78,543 - Change in net position $-$629,500 555,870 $73,630 - NET POSITION - Beginning of Year -- NET POSITION - END OF YEAR $555,870 $- Page 120 I N T E R N A L S E R V I C E F U N D S 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 expenses relative to the replacement of major capital equipment, primarily vehicles. VILLAGE OF OAK BROOK COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS As of December 31, 2017 Self-Insurance Garage Capital Replacement Totals ASSETS Current Assets Cash and investments $45,042 $427,409 $1,794,180 $2,266,631 Receivables Accrued interest --5,934 5,934 Other 79,419 688 -80,107 Inventories -42,858 -42,858 Prepaid items 66,372 --66,372 Total Current Assets 190,833 470,955 1,800,114 2,461,902 Noncurrent Assets Capital assets Capital assets, net of accumulated depreciation -92,947 4,093,358 4,186,305 Total Noncurrent Assets -92,947 4,093,358 4,186,305 Total Assets 190,833 563,902 5,893,472 6,648,207 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions -44,920 -44,920 Total Deferred Outflows of Resources -44,920 -44,920 LIABILITIES Current Liabilities Accounts payable 5,649 31,253 64,523 101,425 Accrued payroll 1,284 6,084 -7,368 Compensated absences payable -9,633 -9,633 Unearned revenues 32,877 --32,877 Claims payable 200,897 --200,897 Total Current Liabilities 240,707 46,970 64,523 352,200 Noncurrent Liabilities Net pension liability - IMRF -87,838 -87,838 Other post employment benefits payable -12,759 -12,759 Total Noncurrent Liabilities -100,597 -100,597 Total Liabilities 240,707 147,567 64,523 452,797 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions -4,168 -4,168 Total Deferred Inflows of Resources -4,168 -4,168 NET POSITION Investment in capital assets -92,947 4,093,358 4,186,305 Unrestricted (49,874)364,140 1,735,591 2,049,857 TOTAL NET POSITION $(49,874)$457,087 $5,828,949 $6,236,162 Page 121 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 Self-Insurance Garage Capital Replacement Totals OPERATING REVENUES Charges for services $3,143,647 $744,972 $605,330 $4,493,949 Grants --148,929 148,929 Total Operating Revenues 3,143,647 744,972 754,259 4,642,878 OPERATING EXPENSES Claims and insurance 3,526,719 --3,526,719 Operation of facilities -653,088 -653,088 Miscellaneous --84,000 84,000 Depreciation and amortization -16,919 607,821 624,740 Total Operating Expenses 3,526,719 670,007 691,821 4,888,547 Operating Income (Loss)(383,072)74,965 62,438 (245,669) NONOPERATING REVENUES (EXPENSES) Investment income 4,066 3,288 18,167 25,521 Gain (loss) on disposal of capital assets --27,788 27,788 Miscellaneous 2,840 --2,840 Total Nonoperating Revenues (Expenses)6,906 3,288 45,955 56,149 Change in net position (376,166)78,253 108,393 (189,520) NET POSITION - Beginning of Year 326,292 378,834 5,720,556 6,425,682 NET POSITION - END OF YEAR $(49,874)$457,087 $5,828,949 $6,236,162 Page 122 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CASH FLOW S INTERNAL SERVICE FUNDS For the Year Ended December 31, 2017 Self-Insurance Garage Capital Replacement Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $1,137,957 $-$-$1,137,957 Receipts from internal service transactions 1,946,361 744,899 754,259 3,445,519 Paid to suppliers for goods and services (3,636,031)(570,696)(19,477)(4,226,204) Paid to employees for services -(97,135)-(97,135) Net Cash Flows From Operating Activities (551,713)77,068 734,782 260,137 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured --393,282 393,282 Investment income 4,066 3,288 18,167 25,521 Purchase of investments --(209,614)(209,614) Interest received --(1,626)(1,626) Other 2,840 -2,578 5,418 Net Cash Flows From Investing Activities 6,906 3,288 202,787 212,981 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets --26,510 26,510 Acquisition and construction of capital assets --(487,588)(487,588) Net Cash Flows From Capital and Related Financing Activities --(461,078)(461,078) Net Change in Cash and Cash Equivalents (544,807)80,356 476,491 12,040 CASH AND CASH EQUIVALENTS - Beginning of Year 589,849 347,053 370,687 1,307,589 CASH AND CASH EQUIVALENTS - END OF YEAR $45,042 $427,409 $847,178 $1,319,629 Page 123 Self-Insurance Garage Capital Replacement Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$(383,072)$74,965 $62,438 $(245,669) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation -16,919 607,821 624,740 Changes in assets and liabilities Accounts receivable (52,582)(73)-(52,655) Prepaid items (36,262)--(36,262) Inventories -9,190 -9,190 Deferred outflows - pensions -8,517 -8,517 Accounts payable (231,455)(39,606)64,523 (206,538) Claims payable 157,978 --157,978 Accrued salaries 427 1,261 -1,688 Compensated absences payable -(537)-(537) Other postemployment benefits payable -5,203 -5,203 Net pension liability -5,885 -5,885 Deferred inflows - pensions -(4,656)-(4,656) Unearned revenues (6,747)--(6,747) NET CASH FLOWS FROM OPERATING ACTIVITIES $(551,713)$77,068 $734,782 $260,137 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and investments - statement of net position $45,042 $427,409 $847,178 $1,319,629 Investments --947,002 947,002 Total Cash and investments $45,042 $427,409 $1,794,180 $2,266,631 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None Page 124 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SELF-INSURANCE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Budgeted Amounts Original Final Actual Variance with Final Budget 2016 Actual OPERATING REVENUES Charges for services $3,202,000 $3,202,000 $3,143,647 $(58,353)$3,029,058 Total Operating Revenues 3,202,000 3,202,000 3,143,647 (58,353)3,029,058 OPERATING EXPENSES Claims and insurance Insurance and administration 1,083,150 1,074,025 1,074,002 23 992,289 Health claims 2,155,000 2,452,720 2,452,717 3 1,814,245 Total Operating Expenses 3,238,150 3,526,745 3,526,719 26 2,806,534 Operating Income (Loss)(36,150)(324,745)(383,072)(58,327)222,524 NON-OPERATING REVENUES (EXPENSES) Investment income 1,000 1,000 4,066 3,066 2,150 Miscellaneous --2,840 2,840 - Total Non-Operating Revenues (Expenses)1,000 1,000 6,906 5,906 2,150 Change in net position $(35,150)$(323,745)(376,166)$(52,421)224,674 NET POSITION - Beginning of Year 326,292 101,618 NET POSITION - END OF YEAR $(49,874)$326,292 Page 125 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - GARAGE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Budgeted Amounts Variance With 2016 Original Final Actual Final Budget Actual Operating Revenues Charges for services 744,375$ 744,375$ 744,972$ 597$ 700,395$ Total Revenues 744,375 744,375 744,972 597 700,395 Operating Expenses Excluding Depreciation Garage operations Personnel 253,495 261,805 139,591 122,214 125,134 Materials and supplies 230,390 191,900 142,914 48,986 134,335 Operation and contractual 286,355 316,535 315,499 1,036 230,923 Expenditure reimbursement paid to other funds 40,135 40,135 40,135 - 40,415 Capital 8,500 8,500 - 8,500 35,510 Total operating expenses excluding depreciation 818,875 818,875 638,139 180,736 566,317 Operating Income (Loss)(74,500) (74,500) 106,833 181,333 134,078 Non-Operating Revenues (Expenses) Investment income 300 300 3,288 979 1,029 Total non-operating revenues (expenses)300 300 3,288 979 1,029 Change in Net Position - Budgetary Basis (74,200)$ (74,200)$ 110,121 182,312$ 135,107 Ad justments to GAAP Basis Pension expense - IMRF (9,746) 30,354 OPEB expense (5,203) 575 Capital expenditures - 35,510 Depreciation and amortization (16,919) (15,902) Total adjustments to GAAP basis (31,868) 50,537 Change in Net Position - GAAP basis 78,253 185,644 NET POSITION - Beginning of Year 378,834 193,190 NET POSITION - END OF YEAR 457,087$ 378,834$ 2017 Page 126 Page 127 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL CAPITAL REPLACEMENT FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Budgeted Amounts Variance With 2016 Original Final Actual Final Budget Actual Operating Revenues Charges for services 605,330$ 605,330$ 605,330$ -$ 586,185$ Intergovernmental - - 148,929 (148,929) - Total Revenues 605,330 605,330 754,259 (148,929) 586,185 Operating Expenses Excluding Depreciation Capital expenditures 473,370 1,232,170 1,232,167 3 450,500 Miscellaneous - 84,005 84,000 5 24,482 Total operating expenses excluding depreciation 473,370 1,316,175 1,316,167 8 474,982 Operating Income (Loss)131,960 (710,845) (561,908) 943,711 111,203 Non-Operating Revenues (Expenses) Gain (loss) on disposal of capital assets 50,000 50,000 27,788 22,212 79,706 Investment income 12,000 12,000 18,167 (6,167) 17,402 Total non-operating revenues (expenses)62,000 62,000 45,955 16,045 97,108 Change in Net Position - Budgetary Basis 193,960$ (648,845)$ (515,953) 959,756$ 208,311 Adjustments to GAAP Basis Capital expenditures 1,232,167 450,500 Depreciation and amortization (607,821) (563,689) Total adjustments to GAAP basis 624,346 (113,189) Change in Net Position - GAAP basis 108,393 95,122 NET POSITION - Beginning of Year 5,720,556 5,625,434 NET POSITION - END OF YEAR 5,828,949$ 5,720,556$ 2017 F I D U C I A R Y F U N D S P E N S I O N T R U S T F U N D S 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. Firefighter’s 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 COMBINING STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS As of December 31, 2017 Police Pension Firefighters' Pension Totals ASSETS Cash $98,741 $819,966 $918,707 Investments Certificates of deposit 624,851 250,263 875,114 Money markets 2,296,060 524,061 2,820,121 U.S. treasuries 299,019 797,883 1,096,902 U.S. agencies 3,960,719 5,456,070 9,416,789 State and local obligations 1,158,346 1,362,634 2,520,980 Corporate bonds 4,826,799 2,015,299 6,842,098 Mutual funds 24,401,322 16,808,482 41,209,804 Accrued interest 120,564 72,951 193,515 Prepaid items 3,162 1,445 4,607 Total Assets 37,789,583 28,109,054 65,898,637 LIABILITIES Accounts payable 9,767 15,565 25,332 Total Liabilities 9,767 15,565 25,332 NET POSITION Restricted for pension benefits $37,779,816 $28,093,489 $65,873,305 Page 128 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2017 Police Pension Firefighters' Pension Total AD DITIONS Contributions Employer $1,748,025 $2,080,231 $3,828,256 Employee 386,727 295,477 682,204 Other 1,657 -1,657 Total Contributions 2,136,409 2,375,708 4,512,117 Investment income Net appreciation in fair value 2,518,009 854,316 3,372,325 Interest 2,013,701 2,658,830 4,672,531 Total Investment Income 4,531,710 3,513,146 8,044,856 Less Investment expense 71,530 54,039 125,569 Net Investment Income 4,460,180 3,459,107 7,919,287 Total Additions 6,596,589 5,834,815 12,431,404 DEDUCTIONS Benefits and refunds 2,315,047 2,695,712 5,010,759 Administrative 35,776 41,034 76,810 Total Deductions 2,350,823 2,736,746 5,087,569 Net Decrease in Net Position 4,245,766 3,098,069 7,343,835 NET POSITION - Beginning of Year 33,534,050 24,995,420 58,529,470 NET POSITION, END OF YEAR $37,779,816 $28,093,489 $65,873,305 Page 129 S T A T I S T I C A L S E C T I O N Statistical Section This part of the Village's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time.130 - 139 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate it's property and sales taxes.140 - 146 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future.147 - 151 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place and to help make comparisons over time and with other governments.152 - 165 Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's financial information relates to the services the Village provides and the activities it performs.166 - 169 Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Page 130 2008 2009 2010 2011 Governmental Activities Net Investment in Capital Assets 61.6$ 60.6$ 55.3$ 56.2$ Restricted - - 3.5 9.4 Unrestricted 22.7 16.9 17.4 13.7 84.3$ 77.5$ 76.2$ 79.3$ Business-type Activities Net Investment in Capital Assets 24.5$ 24.5$ 26.5$ 28.5$ Unrestricted 5.8 5.5 3.6 1.8 Total Business-type Activities 30.3$ 30.0$ 30.1$ 30.3$ Primary Government Net Investment in Capital Assets 86.1$ 85.1$ 81.8$ 84.7$ Restricted - - 3.5 9.4 Unrestricted 28.5 22.4 21.0 15.5 Total Primary Government 114.6$ 107.5$ 106.3$ 109.6$ Data Source Audited Financial Statements Data in millions Note: The Village implemented GASB Statement No. 68 in 2015. Prior years have not been restated. VILLAGE OF OAK BROOK Net Position by Component Last Ten Fiscal Years Page 131 2012 2013 2014 2015 2016 2017 57.6$ 59.3$ 60.7$ 60.7$ 60.5$ 61.8$ 9.4 9.8 11.5 11.3 12.3 14.8 14.0 13.3 12.1 (27.2) (26.1) (27.1) 81.0$ 82.4$ 84.3$ 44.8$ 46.7$ 49.5$ 30.0$ 29.6$ 30.6$ 31.3$ 30.6$ 29.9$ 1.2 4.6 3.7 2.2 3.9 6.6 31.2$ 34.2$ 34.3$ 33.5$ 34.5$ 36.5$ 87.6$ 88.9$ 91.3$ 92.0$ 91.1$ 91.7$ 9.4 9.8 11.5 11.3 12.3 14.8 15.2 17.9 15.8 (25.0) (22.2) (20.5) 112.2$ 116.6$ 118.6$ 78.3$ 81.2$ 86.0$ Page 132 2008 2009 2010 2011 Expenses Governmental Activities General Government 6.2$ 5.3$ 3.9$ 4.2$ Public Safety 12.6 11.9 13.2 12.3 Public Works 3.2 11.9 4.4 4.9 Culture and Recreation 2.0 1.7 1.7 1.7 Interest on Long-Term Debt 0.1 0.1 0.4 0.4 Total Governmental Activities Expenses 24.1 30.9 23.6 23.5 Business-type Activities Water 3.9 4.0 4.5 4.9 Sports Core 3.8 3.5 3.1 3.1 Total Business-type Activities Expenses 7.7 7.5 7.6 8.0 Total Primary Government Expenses 31.8$ 38.4$ 31.2$ 31.5$ Program Revenues Governmental Activities Charges for Services General Government 1.3$ 1.1$ 1.4$ 1.1$ Public Safety 0.8 0.8 1.1 1.5 Other Activities 0.0 0.1 - - Operating Grants and Contributions 0.4 0.3 0.3 0.3 Capital Grants - - 0.7 0.7 Total Governmental Activities Program Revenues 2.5 2.3 3.5 3.6 Business-type Activities Charges for Services W ater 4.0 4.0 5.1 5.3 Sports Core 3.6 3.3 2.5 2.9 Golf Surcharge - - - - Total Business-type Activities Program Revenues 7.6 7.3 7.6 8.2 Total Primary Government Program Revenues 10.1$ 9.6$ 11.1$ 11.8$ Net (Expense) Revenue Governmental Activities (21.6)$ (28.6)$ (20.1)$ (19.9)$ Business-type Activities (0.1) (0.2) - 0.2 Total Primary Government Net (Expense) Revenue (21.7)$ (28.8)$ (20.1)$ (19.7)$ Last Ten Fiscal Years Change in Net Position VILLAGE OF OAK BROOK Page 133 2012 2013 2014 2015 2016 2017 3.7$ 4.3$ 4.5$ 5.3$ 4.7$ 5.7$ 13.4 13.7 14.7 24.6 17.2 17.4 6.1 4.8 4.9 7.7 6.4 3.8 1.8 1.8 2.0 1.5 1.5 1.7 0.4 0.4 0.3 0.3 0.3 0.3 25.4 25.0 26.4 39.4 30.1 28.9 5.6 6.3 7.0 8.0 7.9 7.9 3.3 3.4 3.6 3.7 3.4 3.5 8.9 9.7 10.6 11.7 11.3 11.4 34.3$ 34.7$ 37.0$ 51.1$ 41.4$ 40.3$ 1.6$ 2.1$ 1.9$ 1.8$ 2.1$ 2.6$ 1.1 1.1 1.2 1.2 1.3 1.3 - - - - - - 0.3 0.4 0.4 0.2 0.2 0.2 - 0.5 0.3 - - - 3.0 4.1 3.8 3.2 3.6 4.1 6.7 6.9 7.0 7.7 8.8 9.9 3.2 3.2 3.1 3.2 3.4 3.4 - - - - - 0.1 9.9 10.1 10.1 10.9 12.2 13.4 12.9$ 14.2$ 13.9$ 14.1$ 15.8$ 17.5$ (22.4)$ (20.9)$ (22.6)$ (36.2)$ (26.3)$ (24.8)$ 1.0 0.4 (0.5) (0.8) 0.9 2.0 (21.4)$ (20.5)$ (23.1)$ (37.0)$ (25.4)$ (22.8)$ Page 134 2008 2009 2010 2011 General Revenues and Other Changes in Net Position Governmental Activities Taxes Sales and Local Use Taxes 16.1$ 14.2$ 16.1$ 16.0$ Utility 4.5 4.9 4.7 4.7 Other 2.5 2.5 2.3 2.2 Investment Earnings 0.5 0.1 0.1 - Miscellaneous 0.3 - - - Transfers - - - - Total Governmental Activities 23.9 21.7 23.2 22.9 Business-type Activities Investment Earnings 0.2 - - - Miscellaneous 0.2 - (0.1) - Transfers - - - - Total Business-type Activities 0.4 - (0.1) - Total Primary Government 24.3$ 21.7$ 23.1$ 22.9$ Change in Net Position Governmental Activities 2.3$ (6.9)$ 3.1$ 3.0$ Business-type Activities 0.3 (0.2) (0.1) 0.2 Total Primary Government Change in Net Position 2.6$ (7.1)$ 3.0$ 3.2$ Data Source Audited Financial Statements Data in millions VILLAGE OF OAK BROOK Change in Net Position Last Ten Fiscal Years Page 135 2012 2013 2014 2015 2016 2017 16.7$ 17.3$ 17.7$ 18.1$ 19.3$ 18.3$ 4.9 5.0 5.2 5.7 6.0 6.0 2.5 2.4 2.5 2.8 2.7 3.0 - 0.1 (0.2) 0.2 0.3 0.3 - - - 0.2 - - - (0.2) (0.5) (0.5) - - 24.1 24.6 24.7 26.5 28.3 27.6 - - - - - - - - - - - - - 0.2 0.5 0.5 - - - 0.2 0.5 0.5 - - 24.1$ 24.8$ 25.2$ 27.0$ 28.3$ 27.6$ 1.7$ 3.7$ 2.1$ (9.7)$ 2.0$ 2.8$ 1.0 0.6 - (0.3) 0.9 2.0 2.7$ 4.3$ 2.1$ (10.0)$ 2.9$ 4.8$ Page 136 2008 2009 2010 2011 2012 2013 General Fund Reserved 1,291,975$ 1,495,000$ -$ -$ -$ -$ Unreserved 11,493,855 10,787,853 - - - - Nonspendable - - 1,917,000 2,087,000 2,545,898 168,016 Unrestricted Committed - - - 364,483 224,878 224,878 Assigned - - - - - 102,525 Unassigned - - 11,708,050 13,532,992 14,772,181 15,902,982 Total General Fund 12,785,830$ 12,282,853$ 13,625,050$ 15,984,475$ 17,542,957$ 16,398,401$ Infrastructure Fund Unreserved 4,792,595$ 4,682,620$ -$ -$ -$ -$ Nonspendable - - 337,699 - - - Restricted - - 5,004,945 5,864,870 5,398,644 5,152,351 Total Infrastructure Fund 4,792,595$ 4,682,620$ 5,342,644$ 5,864,870$ 5,398,644$ 5,152,351$ All Other Governmental Funds Restricted -$ -$ 3,672,971$ 3,451,553$ 3,924,483$ 4,560,128$ Unreserved, reported in Special Revenue Funds 2,225,973 2,986,576 - - - - Capital Project Fund 136,330 225,075 - - - - Nonspendable - - - - - - Total All Other Governmental Funds 2,362,303$ 3,211,651$ 3,672,971$ 3,451,553$ 3,924,483$ 4,560,128$ Data Source Audited Financial Statements Last Ten Fiscal Years Fund Balances of Governmental Funds VILLAGE OF OAK BROOK Page 137 2014 2015 2016 2017 -$ -$ -$ -$ - - - - 109,092 53,406 58,444 56,649 - - - - 205,050 - - - 15,799,127 17,206,014 20,014,100 20,998,025 16,113,269$ 17,259,420$ 20,072,544$ 21,054,674$ -$ -$ -$ -$ - - - - 6,706,262 5,791,896 6,766,002 9,743,910 6,706,262$ 5,791,896$ 6,766,002$ 9,743,910$ 4,826,298$ 5,504,093$ 5,673,352$ 5,068,576$ - - - - - - - - 775 775 - 775 4,827,073$ 5,504,868$ 5,673,352$ 5,069,351$ Page 138 2008 2009 2010 2011 2012 2013 Revenues Sales Tax Revenue 10,873,975$ 9,748,649$ 11,121,649$ 11,070,404$ 11,326,929$ 11,385,834$ Non-home Rule Sales Tax 4,874,978 4,410,438 4,833,425 4,833,972 5,230,137 5,171,232 Other Intergovernmental 1,893,862 1,771,733 2,545,066 2,411,395 1,841,378 2,530,416 Utility Taxes 4,520,563 4,922,115 4,669,414 4,657,683 4,900,869 5,047,306 Hotel/Motel Taxes 1,137,614 882,649 881,887 853,638 940,008 964,684 Licenses and Permits 720,847 741,380 843,139 948,872 1,201,998 1,686,269 Charges for Services 839,504 695,630 943,638 1,089,783 970,778 1,021,858 Fines and Penalties 345,937 313,395 229,246 248,120 231,865 184,959 Investment Income 431,753 80,345 110,837 31,018 47,363 86,287 Miscellaneous 391,106 403,580 532,891 323,742 355,548 364,452 Total Revenues 26,030,139 23,969,914 26,711,192 26,468,627 27,046,873 28,443,297 Expenditures General Government 5,846,600 4,932,449 3,522,790 3,319,839 3,600,061 4,289,515 Public Safety 12,280,965 11,496,681 12,536,938 11,755,031 12,986,730 13,440,798 Public Works 2,394,176 10,458,211 4,036,771 4,698,190 4,706,731 4,457,705 Culture and Recreation 2,011,660 1,596,440 1,536,853 1,569,377 1,638,863 1,684,276 Capital Outlay 493,000 994,776 382,039 281,457 607,097 - Debt Service - 1,706,163 1,769,263 1,827,087 1,842,163 1,876,754 Interest and issuance costs - 95,415 462,997 386,259 375,042 362,129 Total Expenditures 23,026,401 31,280,135 24,247,651 23,837,240 25,756,687 26,111,177 Excess of Revenues over (under) Expenditures 3,003,738 (7,310,221) 2,463,541 2,631,387 1,290,186 2,332,120 Other Financing Sources (Uses) Transfers In - - - - 275,000 - Transfers Out - - - - - (725,324) Debt Issuance - 9,788,606 - - - - Debt Issuance premium - 8,861 - - - - Payment to refund bond escrow agent - (2,250,850) - - - - Sale of Capital Assets - - - 28,846 - - Total Other Financing Sources (Uses)- 7,546,617 - 28,846 275,000 (725,324) Net Change in Fund Balances 3,003,738$ 236,396$ 2,463,541$ 2,660,233$ 1,565,186$ 1,606,796$ Debt Service as a percentage of Noncapital Expenditures 0.00%5.95%9.35%9.40%8.82%8.57% Data Source Audited Financial Statements VILLAGE OF OAK BROOK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Page 139 2014 2015 2016 2017 12,149,324$ 12,346,857$ 13,072,837$ 12,481,210$ 5,384,857 5,637,241 5,991,262 5,581,924 2,274,102 1,925,962 1,939,598 1,929,507 5,203,835 5,673,868 5,967,345 6,033,358 1,049,631 1,194,811 1,270,131 1,265,583 1,448,471 1,385,341 1,882,598 2,205,571 1,044,934 1,058,929 1,075,234 1,106,204 189,060 177,588 159,799 144,833 (155,427) 138,593 203,467 309,786 424,552 625,504 421,967 457,543 29,013,339 30,164,694 31,984,238 31,515,519 5,072,205 4,331,061 4,343,678 5,019,819 14,324,720 14,597,010 15,190,063 16,155,248 4,937,146 7,520,877 6,055,657 3,772,803 1,898,393 1,635,690 1,709,465 2,467,432 - - - - 425,000 384,913 420,000 457,000 346,094 326,465 309,761 287,180 27,003,558 28,796,016 28,028,624 28,159,482 2,009,781 1,368,678 3,955,614 3,356,037 156,840 - 516,221 548,454 (630,897) (459,098) (516,221) (548,454) - - - - - - - - - - - - - - - - (474,057) (459,098) - - 1,535,724$ 909,580$ 3,955,614$ 3,356,037$ 2.86%2.47%2.69%2.84% Page 140 Less:Total Taxable Levy Residential Commercial Industrial Railroad Tax-Exempt Assessed Year Property Property Property Property Property Value 2007 1,089,808 598,096 - - - 1,687,904 2008 1,179,126 607,923 - - - 1,787,049 2009 1,176,749 562,531 - - - 1,739,280 2010 1,088,414 511,191 - - - 1,599,605 2011 1,003,641 490,189 - - - 1,493,830 2012 910,922 448,374 - 13 - 1,359,309 2013 856,140 419,122 - 13 - 1,275,275 2014 849,811 414,919 - 13 - 1,264,743 2015 895,787 440,733 - 13 - 1,336,533 2016 967,753 461,677 - 13 - 1,429,443 Data Source Office of the County Clerk Note : Property in the Village is reassessed each year. Property is assessed at 33% of actual value. Other Information from Statement: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of property tax levies and collections. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. VILLAGE OF OAK BROOK Assessed Value and Actual Value of Taxable Property Last Ten Levy Years (data in thousands) Page 141 Total Estimated Estimated Direct Actual Actual Tax Taxable Taxable Rate Value Value - 5,063,712 33.333% - 5,361,147 33.333% - 5,217,840 33.333% - 4,798,815 33.333% - 4,481,490 33.333% - 4,077,927 33.333% - 3,825,825 33.333% - 3,794,229 33.333% - 4,009,599 33.333% - 4,288,329 33.333% Page 142 Tax Levy Year 2007 2008 2009 2010 2011 2012 2013 Tax Rates Village of Oak Brook - - - - - - - Basic Town 0.3662 0.3567 0.3579 0.3875 0.4166 0.4567 0.4892 Junior College #502 0.1888 0.1858 0.2127 0.2349 0.2495 0.2681 0.2956 Grade School #53 0.8060 0.7936 0.8159 0.9164 1.0099 1.1465 1.2491 High School #86 1.0943 1.0804 1.0948 1.2011 1.3362 1.4984 1.5681 Oak Brook Park District 0.1530 0.1504 0.1555 0.1740 0.1904 0.2174 0.2369 Total Tax Rates 2.6083 2.5669 2.6368 2.9139 3.2026 3.5871 3.8389 Data Source Office of the County Clerk NOTE: Basic town includes all county, forest preserve and township rates. Property tax rates are per $100 of assessed valuation. Last Ten Levy Years Property Tax Rates - Direct and Overlapping Governments VILLAGE OF OAK BROOK Page 143 2014 2015 2016 - - - 0.4993 0.4783 0.4490 0.2975 0.2786 0.2626 1.2932 1.2435 1.1710 1.5921 1.5592 1.4731 0.2442 0.2349 0.2229 3.9263 3.7945 3.5786 Page 144 Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Inc.Apple Computer Costco Wholesale Costco Wholesale Integrated Data Storage LLC Macy's Louis Vuitton USA Inc.Macy's Home Store Macy's Neiman Marcus Neiman Marcus Nordstrom Rack Nordstrom Rack Nordstrom, Inc. Nordstrom, Inc.Sears Roebuck & Co. Optiv Security Inc Tiffany & Co. Room & Board Inc.Walter E. Smithe Furniture Top 10 total 5,565,607 $ Top 10 total 5,053,088 $ Total Sales Tax Revenue 12,541,909 $ Total Sales Tax Revenue 11,066,103 $ Top 10 as a Percent of Sales Top 10 as a Percent of Sales Tax Revenue 44.38%Tax Revenue 45.66% Data Source Illinois Department of Revenue - above represents January 1 - December 31 Village cash collections. 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. 2017 2008 Current Year and Nine Years Ago Principal Revenue Taxpayers VILLAGE OF OAK BROOK Page 145 Village DuPage County Regional Fiscal Direct State DuPage County Water Transportation Year Rate Rate Rate Commission Authority 2008 1.00%5.00%0.25%0.25%0.75% 2009 1.00%5.00%0.25%0.25%0.75% 2010 1.00%5.00%0.25%0.25%0.75% 2011 1.00%5.00%0.25%0.25%0.75% 2012 1.00%5.00%0.25%0.25%0.75% 2013 1.00%5.00%0.25%0.25%0.75% 2014 1.00%5.00%0.25%0.25%0.75% 2015 1.00%5.00%0.25%0.25%0.75% 2016 1.00%5.00%0.25%0.00%0.75% 2017 1.00%5.00%0.25%0.00%0.75% Data Source Village and County Records VILLAGE OF OAK BROOK Direct and Overlapping Sales Tax Rates Last Ten Levy Years Page 146 Village Non-Home Rule Total Rate Rate 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.50% 0.50%7.50% Page 147 Governmental Activities Activities Ratio of Total Fiscal Installment Installment Total Outstanding Debt Year Notes Notes Capital Primary To Equalized Ended Payable Payable Leases Government Assessed Valuation* 2008 2,225,000 525,000 - 2,750,000 0.16% 2009 12,332,443 325,000 - 12,657,443 0.71% 2010 10,563,180 731,511 - 11,294,691 0.65% 2011 8,736,093 462,674 - 9,198,767 0.58% 2012 6,984,930 168,837 7,153,767 0.48% 2013 5,017,176 - - 5,017,176 0.37% 2014 4,592,176 - - 4,592,176 0.36% 2015 4,207,263 - - 4,207,263 0.33% 2016 3,787,263 - - 3,787,263 0.28% 2017 3,330,263 - - 3,330,263 0.23% Note: Details of the Village's outstanding debt can be found in the notes to the financial statements. * See the Schedule of Demographic and Economic Information on page 152 for personal income and population data. Business-Type VILLAGE OF OAK BROOK Ratios of Outstanding Debt By Type Last Ten Fiscal Years Page 148 Total Total Outstanding Outstanding Debt Per Debt Per Personal Income Capita* 0.19%316.02 0.86%1,454.54 0.76%1,297.94 0.89%1,166.91 0.69%907.49 0.48%636.46 0.44%582.54 0.41%533.71 0.36%480.43 0.32%422.46 Page 149 (2) *Percentage (1)of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt Village of Oak Brook 3,330,263$ 100%3,330,263 DuPage County 199,572,189 3.95%7,883,101 DuPage Forest Preserve 159,885,684 3.95%6,315,485 DuPage Water Commission - 4.36%- Sanitary Districts - 17.73%- Park Districts 3,970,473 82.84%3,289,140 Elementary School Districts 72,003,171 20.80%14,976,660 High School Districts 146,320,335 10.96%16,036,709 Junior College 502 191,004,756 4.08%7,792,994 Unit District 205 96,055,736 5.01%4,812,392 Subtotal-Overlapping Debt 868,812,344$ 61,106,481$ Total Direct and Overlapping Debt 872,142,607$ 64,436,744$ *Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Oak Brook, Illinois. **Amount in column (2) multiplied by amount in column (1). Totals may not be exact due to rounding. Data Source Office of the County Clerk December 31, 2017 Schedule of Direct and Overlapping Bonded Debt VILLAGE OF OAK BROOK Page 150 2008 2009 2010 2011 2012 Legal debt limit 145,581,763 $ 154,132,970 $ 150,013,021 $ 137,966,087 $ 128,842,981 $ Total net debt 2,750,000 2,400,000 2,055,000 1,710,000 1,335,000 applicable to limit Legal debt margin 142,831,763 151,732,970 147,958,021 136,256,087 127,507,981 Total net debt applicable 1.89%1.56%1.37%1.24%1.04% to the limit as a percentage of debt limit Last Ten Fiscal Years VILLAGE OF OAK BROOK Legal Debt Margin Information Page 151 2013 2014 2015 2016 2017 117,240,487 $ 109,992,484 $ 109,084,108 $ 115,276,061 $ 123,289,569 $ 1,080,000 820,000 555,000 280,000 - 116,160,487 109,172,484 108,529,108 114,996,061 123,289,569 0.92%0.75%0.51%0.24%0.00% Legal Debt Margin Calculation for Fiscal 2017 Assessed Value 1,429,444,279$ Legal debt margin 8.625% Debt limit 123,289,569 Debt applicable to limit General obligation bonds 280,000 Legal debt margin 123,009,569$ Page 152 Per Capita Total (2) Fiscal Personal Personal Unemployment Year Population Income Income Rate 2008 8,702 (E)169,718 1,476,886,036 8.6% 2009 8,702 (E)169,718 1,476,886,036 8.4% 2010 8,702 (E)169,718 1,476,886,036 8.3% 2011 7,883 (A)131,719 1,038,340,877 8.0% 2012 7,883 (E)131,719 1,038,340,877 7.3% 2013 7,883 (E)131,719 1,038,340,877 7.5% 2014 7,883 (E)131,719 1,038,340,877 5.7% 2015 7,883 (E)131,719 1,038,340,877 4.7% 2016 7,883 (E)131,719 1,038,340,877 5.1% 2017 7,883 (E)131,719 1,038,340,877 3.9% (A) Actual (E) Estimate Note: Latest information available Data Source U.S. Bureau of Labor Statistics VILLAGE OF OAK BROOK Demographic and Economic Information Last Ten Fiscal Years Page 153 2017 2008 Percentage of Total Percentage of Employer Rank Employees Village Population Rank Employees Village Population Oakbrook Center Mall 1 4,200 53.3%1 3,500 40.2% McDonald's Corporation 2 2,300 29.2%2 2,188 25.1% Advocate Healthcare 3 1,190 15.1%4 500 5.7% Ace Hardware 4 952 12.1%3 750 8.6% Hub Group 5 735 9.3% Chamberlain Group 6 600 7.6% TreeHouse Foods 7 428 5.4% Inland Real Estate Group of Companies 8 408 5.2% Lion's Club International 9 321 4.1%8 300 3.4% Elkay Manufacturing 10 288 3.7%7 325 3.7% Safeway, Inc.5 400 4.6% Dominick's 6 350 4.0% Federal Signal Corporation 9 200 2.3% Blistex Inc.10 175 2.0% Data Source A-Z Database; Selective Telephone Survey Current Year and Nine Years Ago Principal Employers VILLAGE OF OAK BROOK Page 154 (1) Estimated Sales 2017 Municipality Rank Sales Per Capita Population Chicago 1 28,413,967,500$ 10,541$ 2,695,598 Naperville 2 3,378,989,700 23,820 141,853 Schaumburg 3 3,198,090,000 43,085 74,227 Springfield 4 2,778,529,100 23,901 116,250 Rockford 5 2,376,618,900 15,547 152,871 Aurora 6 2,261,034,700 11,425 197,899 Joliet 7 2,223,823,600 15,084 147,433 Peoria 8 2,104,948,300 18,303 115,007 Orland Park 9 2,027,563,000 35,717 56,767 Mount Prospect 10 1,824,528,500 33,683 54,167 Glenview 11 1,707,908,700 38,215 44,692 Champaign 12 1,653,501,800 20,400 81,055 Skokie 13 1,537,482,500 23,732 64,784 Niles 14 1,532,672,100 51,427 29,803 Elgin 15 1,482,862,800 13,706 108,188 Bolingbrook 16 1,463,362,900 19,946 73,366 Bloomington 17 1,445,658,800 18,870 76,610 Vernon Hills 18 1,426,052,400 56,785 25,113 Tinley Park 19 1,401,206,500 24,711 56,703 Elmhurst 20 1,257,569,000 28,254 44,509 Gurnee 21 1,249,899,600 39,939 31,295 Downers Grove 22 1,247,964,500 26,090 47,833 Oak Brook 23 1,240,438,500 157,356 7,883 Arlington Heights 24 1,209,387,500 16,103 75,101 Lombard 25 1,194,795,500 27,533 43,395 Source: Illinois Department of Revenue - Local Tax Allocation Division and the U.S. Census Bureau. VILLAGE OF OAK BROOK Retail Sales Volume - Top 25 Illinois Communities State Collection Period January 1, 2017 Through December 31, 2017 Note (1): Distributions to municipalities of the 1% municipal tax were used to calculate the estimated retail sales. Actual sales tax amounts were received by the municipalities March 1, 2017 through February 28, 2018. Page 155 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 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% 2011 11,048,561 5.7%4,939,565 5.0%15,988,126 5.5% 2012 11,147,846 0.9%5,132,229 3.9%16,280,075 1.8% 2013 11,641,063 4.4%5,171,736 0.8%16,812,799 3.3% 2014 12,004,427 3.1%5,336,836 3.2%17,341,263 3.1% 2015 12,376,637 3.1%5,667,235 6.2%18,043,872 4.1% 2016 13,021,926 5.2%5,997,652 5.8%19,019,578 5.4% 2017 12,541,909 -3.7%5,711,846 -4.8%18,253,755 -4.0% Source: Village Records Note: The Village's Non-Home rule sales tax rate increased from .25% to .50% in 2008. VILLAGE OF OAK BROOK Sales Tax Receipts Cash Basis Last Ten Fiscal Years Page 156 VILLAGE OF OAK BROOK State Sales Tax Receipts By Month Cash Basis Last Five Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/11 Ended 12/31/13 Ended 12/31/14 Ended 12/31/15 Ended 12/31/16 Ended 12/31/17 January 895,308 $ 871,423 $ 965,587 $ 989,753 $ 994,739 $ 1,007,103 $ February 956,493 968,174 1,007,170 1,069,783 1,045,429 1,114,054 March 1,477,682 1,564,960 1,684,678 1,707,798 1,658,727 1,594,758 April 666,930 810,073 668,268 796,933 847,398 856,442 May 695,977 792,731 746,691 748,968 939,441 791,176 June 871,520 887,312 982,179 1,004,066 1,165,340 975,861 July 877,924 851,415 911,040 928,749 945,183 922,697 August 933,061 917,736 994,734 1,011,901 1,041,277 1,020,651 September 926,998 956,861 1,070,696 993,355 1,218,034 1,083,420 October 900,670 947,429 980,261 1,011,858 1,045,493 1,020,709 November 938,459 1,026,555 1,039,263 1,086,052 1,084,781 1,118,016 December 907,539 1,046,394 953,862 1,027,421 1,036,284 1,037,022 Total 11,048,561 $ 11,641,063 $ 12,004,429 $ 12,376,637 $ 13,022,126 $ 12,541,909 $ Source: Village Records Page 157 FY 2014 FY 2015 FY 2016 FY 2017 10.8%2.5%0.5%1.2% 4.0%6.2%-2.3%6.6% 7.6%1.4%-2.9%-3.9% -17.5%19.3%6.3%1.1% -5.8%0.3%25.4%-15.8% 10.7%2.2%16.1%-16.3% 7.0%1.9%1.8%-2.4% 8.4%1.7%2.9%-2.0% 11.9%-7.2%22.6%-11.1% 3.5%3.2%3.3%-2.4% 1.2%4.5%-0.1%3.1% -8.8%7.7%0.9%0.1% 3.1%3.1%5.2%-3.7% From Preceding Year Percentage Change Page 158 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/13 Ended 12/31/14 Ended 12/31/15 Ended 12/31/16 Ended 12/31/17 January 400,764 $ 432,662 $ 457,128 $ 457,292 $ 466,623 $ February 444,306 447,936 495,179 485,225 524,829 March 740,816 758,692 795,630 778,457 756,825 April 337,086 292,394 361,858 383,224 382,843 May 332,311 331,429 338,862 431,470 361,160 June 396,344 416,907 457,660 539,151 445,584 July 390,534 405,594 423,983 434,261 425,623 August 418,782 436,072 469,228 481,286 459,149 September 433,709 457,975 456,114 567,454 492,607 October 414,622 439,287 468,027 481,499 458,506 November 420,938 453,963 474,287 476,167 471,254 December 441,524 463,924 469,279 482,166 466,843 Total 5,171,736 $ 5,336,835 $ 5,667,235 $ 5,997,652 $ 5,711,846 $ Source: Village Records VILLAGE OF OAK BROOK Last Five Fiscal Years Cash Basis Non-Home Rule Sales Tax Receipts By Month Page 159 FY 2014 FY 2015 FY 2016 FY 2017 8.0%5.7%0.0%2.0% 0.8%10.5%-2.0%8.2% 2.4%4.9%-2.2%-2.8% -13.3%23.8%5.9%-0.1% -0.3%2.2%27.3%-16.3% 5.2%9.8%17.8%-17.4% 3.9%4.5%2.4%-2.0% 4.1%7.6%2.6%-4.6% 5.6%-0.4%24.4%-13.2% 5.9%6.5%2.9%-4.8% 7.8%4.5%0.4%-1.0% 5.1%1.2%2.7%-3.2% 3.2%6.2%5.8%-4.8% From Preceding Year Percentage Change Page 160 Fiscal Years 2008 2009 2010 2011 2012 2013 2014 General Merchandise 2,064,241$ 1,864,664$ 1,988,286$ 2,025,257$ 2,087,873$ 1,859,342$ 1,611,302$ Food 54,585 68,576 49,666 45,910 49,616 52,331 57,974 Drinking and eating places 1,248,272 1,270,903 1,388,881 1,428,598 1,506,289 1,615,029 1,717,184 Apparel 2,876,511 2,711,321 2,987,468 3,034,654 3,110,107 3,065,618 3,141,898 Furniture, H.H. and radio 1,076,836 840,999 957,980 975,472 1,090,244 1,251,860 1,421,458 Lumber, building and hardwa 39,312 32,472 17,588 12,853 24,600 10,653 8,686 Automotive and filling station 1,708,234 1,568,808 1,623,980 1,509,528 1,619,343 1,674,689 1,682,593 Drugs and other retail 1,141,709 1,046,055 1,265,890 1,472,117 1,124,986 1,250,569 1,530,596 Agriculture and all others 507,663 414,462 354,622 422,368 418,871 421,724 486,652 Manufacturers 72,003 100,642 83,952 126,281 174,572 687,312 451,814 Total 10,789,368$ 9,918,901$ 10,718,314$ 11,053,036$ 11,206,502$ 11,889,128$ 12,110,156$ Village direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00% Source: Illinois Department of Revenue - Local Tax Allocation Division Note: Gross receipts include both Cook and DuPage County 1% municipal sales tax. Amounts reflect sales tax collected by the Village between April 1 and March 31 as reported by the State. VILLAGE OF OAK BROOK Sales Tax By Category Last Ten Fiscal Years Page 161 2015 2016 2017 1,408,191$ 1,305,272$ 1,180,117$ 170,497 167,143 191,370 1,770,370 1,844,551 1,866,420 3,078,876 2,989,258 2,931,827 1,606,454 1,613,318 1,472,053 6,623 4,642 6,603 1,698,040 1,683,947 1,884,059 1,817,539 1,857,751 1,842,238 506,631 1,368,475 805,122 238,943 204,789 262,420 12,302,164$ 13,039,146$ 12,442,227$ 1.00%1.00%1.00% Page 162 Fiscal Years 2008 2009 2010 2011 2012 General Merchandise 1,024,873$ 926,187$ 973,309$ 1,006,608$ 1,028,630$ Food 19,275 20,652 19,332 20,436 22,769 Drinking and eating places 615,357 632,360 692,224 710,688 749,294 Apparel 1,433,462 1,353,324 1,492,720 1,516,414 1,554,292 Furniture, H.H. and radio 534,252 419,064 478,065 486,841 544,734 Lumber, building and hardware 19,735 16,233 8,807 6,427 12,299 Automotive and filling stations 410,617 419,622 438,722 413,502 444,986 Drugs and other retail 501,254 455,080 496,243 522,092 574,857 Agriculture and all others 224,370 191,955 160,284 190,247 186,919 Manufacturers 35,964 50,271 41,947 63,114 75,056 Total 4,819,159$ 4,484,747$ 4,801,654$ 4,936,368$ 5,193,836$ Village non-home rule sales tax rate 0.50%0.50%0.50%0.50%0.50% Source: Illinois Department of Revenue - Local Tax Allocation Division Note The Village's Non-Home rule sales tax increased from .25% to .50% effective January 1, 2008. VILLAGE OF OAK BROOK Non-Home Rule Sales Tax By Category Last Ten Fiscal Years Note: Gross receipts include both Cook and DuPage County 1% municipal sales tax. Amounts reflect sales tax collected between April 1 and March 31 as reported by the State. Page 163 2013 2014 2015 2016 2017 923,522$ 799,234$ 697,506$ 646,561$ 584,228$ 24,206 26,475 82,154 79,404 90,688 804,095 854,898 880,598 916,540 927,586 1,532,230 1,570,256 1,538,617 1,493,830 1,464,698 624,646 707,730 801,746 806,090 737,997 5,326 4,341 3,290 2,311 3,292 462,595 461,447 454,848 443,470 505,785 581,045 717,631 862,594 880,058 871,568 189,403 221,375 233,499 662,998 375,069 74,826 78,163 80,757 88,331 125,245 5,221,895$ 5,441,550$ 5,635,608$ 6,019,593$ 5,686,156$ 0.50%0.50%0.50%0.50%0.50% Page 164 Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 111 Board of Trustees 0.50 0.50 0.50 0.75 0.50 0.50 0.50 0.50 0.50 0.50 112 Village Clerk 3.25 3.25 1.50 1.75 1.95 1.25 1.25 2.75 2.08 2.03 121 Legal 0.25 0.25 0.25 0.25 0.35 0.25 0.25 0.25 0.35 0.00 131 General Management 2.50 2.50 2.25 3.00 2.55 2.50 3.00 2.00 1.72 1.60 132 Human Resources 1.00 1.50 1.75 1.50 1.75 2.00 2.00 2.00 1.10 1.28 134 Risk Management 0.50 0.50 0.50 0.50 0.40 0.50 0.50 0.50 0.20 0.20 136 General Services 1.25 1.25 2.00 1.75 1.35 0.00 0.00 0.00 1.20 1.20 137 Business Licenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 138 Communications and Marketing 0.00 0.00 0.00 0.00 0.00 0.00 0.50 0.00 0.00 0.00 141 Purchasing 1.50 0.00 0.50 0.50 0.85 1.00 1.00 1.00 0.00 0.00 151 Information Services 3.50 3.00 2.25 2.00 2.60 2.00 2.00 2.00 2.65 2.90 152 Geographic Information Systems 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.35 0.35 Legislative and General Management Total 14.25 12.75 11.50 12.00 12.30 10.00 11.00 11.00 10.15 10.06 211 Financial Services Management 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.88 1.00 221 Accounting and Reporting 4.50 5.00 3.00 2.75 2.75 3.00 3.00 3.00 4.05 3.05 231 Customer Service 0.00 0.00 0.00 0.00 0.00 1.50 1.50 1.50 0.00 0.00 241 Purchasing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 Financial Services Total 5.50 6.00 4.00 3.75 3.75 5.50 5.50 5.50 5.93 5.05 321 Buildings and Grounds 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 335 Forestry 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 341 Garage Operations 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.48 2.48 351 Water Operations 7.50 7.50 6.50 6.00 6.00 7.00 7.00 7.00 7.00 7.00 360 Public Works Management 3.00 3.00 2.50 2.50 2.00 2.50 2.50 2.50 3.00 3.00 361 Streets - General Salaries 8.00 8.00 8.00 8.00 8.00 6.50 6.50 6.50 6.90 7.90 Public Works Total 21.50 21.50 20.00 19.50 19.00 19.00 19.00 19.00 20.58 22.08 511 Library General Operations 7.00 7.00 4.00 4.50 5.25 5.50 5.50 6.50 5.88 5.75 521 Technical Services 2.50 2.50 3.00 2.75 2.75 2.00 2.00 2.00 1.80 1.80 531 Reference and User Services 2.50 2.50 1.75 2.25 2.50 3.00 3.00 2.00 1.95 1.90 541 Youth Services 2.75 2.75 1.50 2.00 1.50 1.50 2.00 2.00 1.95 1.90 Library Total 14.75 14.75 10.25 11.50 12.00 12.00 12.50 12.50 11.58 11.35 (Continued) Last Ten Fiscal Years Budgeted Full-Time Equivalent Employees VILLAGE OF OAK BROOK Page 165 Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 611 Police Services Management 3.00 3.00 3.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 621 Police Field Services 36.25 35.25 31.50 31.50 32.20 31.00 31.00 31.00 32.20 32.20 622 Police Auxiliary 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 0.28 0.50 631 Police General Support 3.50 3.50 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 632 Police Investigations 7.00 6.00 8.00 8.00 7.00 6.00 6.00 6.00 6.00 6.00 633 Village Communications Center 12.50 12.00 9.00 7.00 0.00 0.00 0.00 0.00 0.00 0.00 634 Police Support Services 3.00 3.00 2.50 2.50 6.55 3.50 3.50 3.50 3.25 3.25 635 Police Public Relations/Crime Prevention 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 636 Police Adjudication 0.00 0.00 0.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00 Police Total 65.25 62.75 57.00 54.50 50.75 47.50 47.50 52.50 48.73 48.95 700 Fire and EMS - General Salaries**33.00 33.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 711 Rescue and Fire Service Management 3.00 2.50 1.50 1.50 1.50 1.50 2.20 2.85 2.35 2.35 723 Fire Rescue and Training 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 731 Emergency Medical Service 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.40 6.40 741 Fire Prevention and Public Safety Education 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.60 3.60 Fire Total***44.00 41.50 38.50 38.50 38.50 38.50 39.20 39.85 43.55 43.55 811 Sports Core General Operations 2.75 2.25 1.75 1.50 0.75 0.25 1.50 0.50 1.40 1.50 812 Swimming Operations 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.15 813 Tennis 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 0.65 821 Sports Core Food & Beverage Operations 2.50 2.75 0.00 0.50 0.50 0.50 1.00 1.50 1.50 1.75 822 Poolside Grill Food & Beverage Operations 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 823 Golf Club Food & Beverage Operations - 0.25 0.50 0.50 0.50 0.50 0.50 0.50 3.80 3.80 831 Golf Club General Operations 3.25 3.25 2.75 2.25 2.00 2.00 2.00 2.00 8.00 10.15 832 Golf Learning and Practice 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 833 Golf Cart Operations 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 834 Golf Course Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 13.50 12.50 Sports Core Total 17.45 17.45 13.95 13.70 12.70 12.20 13.95 13.45 34.15 34.90 460 Engineering 4.00 4.00 3.50 3.25 3.50 3.50 3.50 3.50 3.40 2.36 911 Community Development Management 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 2.60 2.60 921 Code Enforcement 4.00 3.50 3.50 3.50 4.25 4.25 5.50 6.00 5.91 5.23 Community Development Total 10.00 9.50 9.00 8.75 9.75 9.75 11.50 12.00 11.91 10.19 GRAND TOTAL ALL DEPARTMENTS 192.70 186.20 164.20 162.20 158.75 154.45 160.15 165.80 186.58 186.13 **Six contract firefighter/paramedics are used to supplement the full-time complement of firefighter/paramedics. Source: Village Records ***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. *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. Last Ten Fiscal Years VILLAGE OF OAK BROOK Budgeted Full-Time Equivalent Employees (Continued) Page 166 Function/Program 2008 2009 2010 2011 2012 Public Safety Police Physical arrests 293 399 357 267 234 Parking violations 1,420 1,113 877 1,245 636 Traffic violations 3,371 3,464 4,090 3,374 3,137 Fire EMS Incidents 1,118 1,069 1,006 1,091 1,113 Fire Incidents 752 802 918 788 656 Communications Center Police calls dispatched 10,667 9,911 9,666 9,666 12,696 Fire/EMS calls dispatched 2,214 2,176 2,240 2,156 2,071 Water New water meters installed 21 10 10 11 14 Water main breaks repaired 58 63 59 50 61 Water pumped (Mil. Gals.)1,210 1,105 1,136 1,060 1,173 Library Total Circulation 96,631 90,287 87,906 84,768 91,017 Avg. Daily Circulation 282.5 267.9 260.5 253.0 269.0 Total Holdings 105,493 111,051 116,386 124,757 128,343 Community Development Building permits issues 742 606 696 705 770 Inspections 1,772 2,090 2,193 2,139 2,311 Estimated construction value 46,663,489$ 51,776,407$ 51,559,533$ 58,775,804$ 76,987,646$ Sports Core B&T Recreation Membership 303 259 300 320 363 Social Memberships 129 80 64 59 67 Total Events 202 123 39 35 56 Golf Memberships 226 219 207 182 154 Total Golf Rounds 40,336 39,686 37,750 35,196 38,637 Data Source Various village departments n/a Information was unavailable for this given period. Last Ten Fiscal Years Operating Indicators VILLAGE OF OAK BROOK Page 167 2013 2014 2015 2016 2017 178 196 208 191 212 501 306 299 901 443 2,897 2,986 2,082 1,465 1,495 1,191 1,321 1,329 1,432 1,424 667 742 600 630 672 18,552 19,853 19,442 23,924 21,656 2,294 2,448 2,246 2,407 2,493 15 16 33 19 23 48 36 17 43 31 1,113 1,080 1,152 1,087 995 93,300 90,485 91,205 112,423 112,268 274.0 265.0 270.0 318.0 312.0 131,658 131,973 102,441 97,201 94,353 811 837 850 841 943 2,617 2,648 2,790 2,999 2,963 131,935,998$ 110,922,495$ 174,948,935$ 99,520,330$ 176,470,285$ 347 338 307 317 294 68 82 81 77 - 66 72 71 75 65 146 143 142 145 151 34,670 33,861 34,019 39,324 39,863 Page 168 Function/Program 2008 2009 2010 2011 2012 2013 Public Safety Police Stations 1 1 1 1 1 1 Area patrols 5 5 4 5 5 5 Patrol units 15 15 12 11 11 11 Fire Fire stations 2 2 2 2 2 2 Engine 1 1 1 1 1 1 Truck 1 1 1 1 1 1 Squad 1 1 1 1 1 1 Ambulances 2 2 2 2 2 2 Incident Command Vehicle 1 1 1 1 1 1 Reserve Apparatus 4 4 4 4 4 4 Staff & Support Vehicles 5 5 5 5 5 5 Public Works Arterial streets (miles)8.5 8.5 8.5 8.5 8.5 8.5 Residential streets (miles)49 49 49 49 49 49 Streetlights 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 Water Water mains (miles)105 105 105 105 105 105 Fire hydrants 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. Data Source Various village departments Last Ten Fiscal Years Capital Asset Statistics VILLAGE OF OAK BROOK Page 169 2014 2015 2016 2017 1 1 1 1 5 5 5 5 11 11 11 11 2 2 2 2 1 1 1 2 1 1 1 1 1 1 1 2 2 2 2 2 1 1 1 1 4 4 4 4 4 3 3 3 8.5 8.5 8.5 8.5 49 49 49 49 565 565 565 565 11 11 11 11 105 105 105 105 1,500 1,500 1,500 1,500 8.0 mil.8.0 mil.8.0 mil.8.0 mil.