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CAFR (Year Ended December 31, 2016)VILLAGE OF OAK BROOK COMPREHENSIVE AN NUAL FINANCIAL REPORT For the Year Ended December 31, 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE VILLAGE OF OAK BROOK, ILLINOIS As of and for the Year Ended December 31, 2016 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, 2016 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 - 27 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 28 Statement of Cash Flows - Proprietary Funds 29 - 30 Statement of Fiduciary Net Position - Fiduciary Funds 31 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 32 Index to Notes to Financial Statements 33 Notes to Financial Statements 34 - 80 REQUIRED SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 81 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2016 REQUIRED SUPPLEMENTARY INFORMATION (cont.) Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Hotel/Motel Tax Fund 82 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 83 Illinois Municipal Retirement Fund - Schedule of Employer Contributions 84 Police Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 85 Police Pension Fund - Schedule of Employer Contributions 86 - 87 Police Pension Fund - Schedule of Investment Returns 88 Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 89 Firefighters' Pension Fund - Schedule of Employer Contributions 90 - 91 Firefighters' Pension Fund - Schedule of Investment Returns 92 Other Postemployment Benefit Plan - Schedule of Employer Contributions and Schedule of Funding Progress 93 Notes to Required Supplementary Information 94 SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues - Budget and Actual - General Fund 95 Schedule of Expenditures - Budget and Actual - General Fund 96 - 101 Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 103 Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 104 Infrastructure Fund - Major Capital Projects Fund 105 - 108 Promenade TIF Fund - Major Capital Projects Fund 109 Proprietary Funds Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 110 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2016 SUPPLEMENTARY INFORMATION (cont.) Schedule of Operating Expenses - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 111 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Sports Core Fund - Major Enterprise Fund 112 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 113 Schedule of Operating Expenses - Budget and Actual - Sports Core Fund - Major Enterprise Fund 114 - 116 Internal Service Funds Combining Statement of Net Position - Internal Services Funds 117 Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds 118 Combining Statement of Cash Flows - Internal Service Funds 119 - 120 Statement of Revenues, Expenses and Changes in Net Position - Budget and Actual Self-Insurance Fund - Internal Service Fund 121 Garage Fund - Internal Service Fund 122 Capital Replacement Fund - Internal Service Fund 123 Fiduciary Funds Combining Statement of Fiduciary Net Position - Pension Trust Funds 124 Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 125 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 126 - 127 Changes in Net Position - Last Ten Fiscal Years 128 - 131 Fund Balances of Governmental Funds - Last Ten Fiscal Years 132 - 133 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 134 - 135 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 136 - 137 Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 138 - 139 Principal Revenue Taxpayers - Current and Nine Years Ago 140 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 141 - 142 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 143 - 144 Schedule of Direct and Overlapping Bonded Debt 145 Legal Debt Margin Information - Last Ten Fiscal Years 146 - 147 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2016 STATISTICAL SECTION (cont.) Demographic and Economic Information - Last Ten Fiscal Years 148 Principal Employers - Current and Eight Years Ago 149 Retail Sales Volume - Top 25 Illinois Communities 150 Sales Tax Receipts - Cash Basis - Last Ten Fiscal Years 151 State Sales Tax Receipts by Month - Cash Basis - Last Five Fiscal Years 152 - 153 Non-Home Rule Sales Tax Receipts by Month - Cash Basis - Last Ten Fiscal Years 154 - 155 Sales Tax by Category - Last Ten Fiscal Years 156 - 157 Non-Home Rule Sales Tax by Category - Last Ten Fiscal Years 158 - 159 Budgeted Full-Time Equivalent Employees - Last Ten Fiscal Years 160 - 161 Operating Indicators - Last Ten Fiscal Years 162 - 163 Capital Assets Statistics - Last Ten Fiscal Years 164 - 165 Village of OakBrook 1200 Oak Brook Road Oak Brook, IL 60523-2255 Website www.oak-brook.org Administration 630.368.5000 FAX 630.368.5045 Community Development 630.368.510 I FAX 630.368.5128 Engineering Department 630.368.5130 FAX 630.368.5128 Fire Department 630.368.5200 FAX 630.368.5251 Police Department 630.368.8700 FAX 630.368.8739 Public Works Department 630.368.5270 FAX 630.368.5295 Oak Brook Public Library 600 Oak Brook Road Oak Brook, lL 60523-2200 630.368.7700 FAX 630.368.7704 Oak Brook Sports Core Bath & Tennis Club 700 Oak Brook Road Oak Brook, IL 60523-4600 630.368.6420 FAX 630.368.6439 Golf Club 2606 York Road Oak Brook, IL 60523-4602 630.368.6400 FAX 630.368.6419 April 25 , 2017 Honorable Gopal Lalmalani , Village President Board ofTrustees 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 report is published to fulfill that requirement for the year ended December 31 , 2016. 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 fairly set forth the financial position and results of the operations. Management ofthe Village 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 for 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 financial 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 ofTrustees. The Village also maintains an encumbrance system that is used as an extension of formal budgetary integration . The Village 's financial statements have been audited by Baker Tilly , 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 ii 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, 2016, the independent auditors concluded, that there was a reasonable basis for rendering an unmodified opinion on the Village’s financial statements. The independent auditor’s report is presented as the first component of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follow the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Village of Oak Brook The Village of Oak Brook is located approximately 15 miles west of the Chicago Loop, near the geographic center of the seven-county Chicago metropolitan area. Excellent transportation links are provided to all parts of the greater metropolitan area by a network of tollways and federal and state highways which pass through or near the Village. The Tri-State Tollway (I-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 through the Village’s northern sector, joins the Eisenhower Expressway to the northeast, providing direct access to Chicago’s Loop. Additional links include east-west arteries Illinois Route 38 and U.S. Route 34, which pass, respectively, to the north and south of the Village, and Illinois Route 83, which bisects the community in a north-south direction. The Oak Brook area is generally bounded on the north by the communities of Lombard, Villa Park, Elmhurst and Oak Brook Terrace and on the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale. The Village of Oak Brook operates under the Village form of government with an elected Village President and six (6) Trustees. Operational management is provided by a professional manager appointed by the Board of Trustees. The Village provides a wide range of municipal services including general government, public safety (police and fire), public works, road maintenance, community development and recreation facilities and a free public library. For additional information concerning the Village, please visit our website at www.oak- brook.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 Fortune 500 companies have facilities in the Village, including the corporate headquarters of McDonald’s Corporation, 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 Brook is comprised of 40,558 jobs (2016, IDES, Where Workers iii Work); of them, 20.1% are in the Administrative and Support, Waste Management, and Remedial services, 15.4% are in the Management of Companies and Enterprises, and 12.7% are in the wholesale and retail trade. 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 Village 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 increased $721,795, or 5.9% compared to last year’s collections, and have increased nearly $3 million compared to 2009’s collections. Oak Brook’s estimated construction value indicates a positive trend between the years of 2013 through 2016, with the high coming in 2015 at $174.9 million. The estimated construction value in 2016 is $99.5 million, with the decrease due to the permit for a major project being deferred to 2017. Total building permits issued during 2016 came in at 841, which is a slight decrease of 1.1% compared to 2015. Overall, development has been strong over the past four years. New Commercial Development There have been many changes and improvements in Oakbrook Center. The AMC 12 Cinema opened in late 2016, including a new food court with multiple restaurants. The Mitchell Gold & Bob Williams signature furniture store completed its $1.7 million project. Hyatt House hotel broke ground during 2016 and construction is expected to be complete by the fall of 2017. Michael Jordan’s new restaurant plans to open in mid 2017. New Office Development The Duchossois Redevelopment Project for a 245,000 square foot corporate facility for the Duchossois Group has been completed in early 2017. Employees are currently in the process of moving into the new building. 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 2017. Long-term Financial Planning The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Objectives –this is an annual process in which the Village Board and staff express specific objectives to be accomplished. Typically, objectives relate to a specific iv task or project or to a change in methods or operations designed to achieve the stated objective. Roadway Maintenance Plan –this plan is based on the Village’s pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated annually, includes a long-range schedule of roadway maintenance activities as well as cost projections over the next ten year period in order to plan for the orderly maintenance of the Village’s roadway system. Five-Year Financial Plan –this document is prepared annually in order to provide the Village Board and the community with a five year projection of the financial condition of each of the twelve funds that comprise the Village’s financial structure. This document is not as precise as the annual budget but it does project both revenues and expenditures for each of the next five years that can assist in identifying positive and negative trends. Annual Budget –using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers (called “programs”) and sets the spending plan for the coming year. The foundation of all of the Village’s financial planning is centered on the Village Board’s well publicized policy of maintaining a cash and investment reserve in the General Fund that meets or exceeds six months of annual operating expenses. The six month policy level, which is higher than many other municipalities, was established due to the Village not having the predictability of real estate tax revenue and the fact that most of its general revenues that are collected by the State (sales and telecommunications taxes) have a three month delay. This conservative policy ensures that the Village will have sufficient funds on hand to operate in an emergency situation as well 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 In 2016, electrical design work was performed at the Municipal Complex with construction planned for 2017, the restroom renovation project at the Butler Government Center was started,patient stretcher lifts and a power stretcher were purchased improving safety and preventing injuries, eight vehicles were replaced,cardiac monitors were replaced, and exterior improvements were made at the Heritage Center. Renovation plans in the police department are underway to improve functionality and safety measures. Various street improvements were performed throughout the Village, including the St. Paschal Drive and 35th Street project. Various pedestrian access improvements in the vicinity of the Oakbrook Center shopping area were completed. v There were many improvements made at the Sports Core this ye ar including new HVAC units in the men’s and women’s locker rooms at the Bath and Tennis Clubhouse, improvements to the golf course to enhance the course drainage,and new course mowers and equipment. Included in the 2017 budget are various street improvement projects, equipment replacement items for various departments,a new fire utility vehicle purchase,and numerous municipal building improvements. The Hotel/Motel Fund has planned various projects to attract and promote visitors to the area. The second half of the Hotel/Motel Fund project for 22nd Street Illinois Transportation Improvement Project (ITEP) –Salt Creek to I-294 is scheduled in 2017. The Water Fund has a Village wide water meter replacement project budgeted for 2017. The Sports Core is planning a Bath and Tennis Clubhouse improvement project, a new sign on 31st Street, and Golf Club furniture and interior improvements. In 2017 and after,the Five-Year Financial Plan lists planned major capital projects including:the continuation of the annual paving program, Heritage Center improvements, police department renovation project, electrical to gas conversion project, Butler Government Center roof project,Fire Station 93 building improvements, equipment and vehicle replacements, water main improvements,water meter replacements, various improvements to the Bath and Tennis Clubhouse, golf cart fleet replacement, golf back patio upgrades,pedestrian access (Hotels and offices to Oakbrook Center), and 22nd St. streetscape project (Salt Creek to I294). For a full listing of planned capital improvements, you can review the 2017 Five-Year Financial Plan at: http://www.oak-brook.org/304/Financial-Documents. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Oak Brook for its Comprehensive Annual Financial Report for the year ended December, 31, 2015. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village has successfully obtained the Certificate of Achievement for 39 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 annual budget for the 2016 fiscal year. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This is the fourth year the Village has received this award. The preparation of this report could not be published without the efficient and dedicated services of the entire Finance Department of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Jaso1t ' Finance Director Vl Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Oak Brook Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2015 Executive Director/CEO ResidentsofOak BrookVillage Presidentand Board of TrusteesVillage Clerk Village ManagerVillage Attorney(General)Finance DirectorChief of PoliceFire ChiefPublic Works DirectorDevelopment ServicesDirectorLibrary DirectorGolf Course Grounds SuperintendentBoards andCommissionsVillage of Oak BrookOrganization ChartFiscal Year 2016Village Attorney(Labor) Information Technology Services DirectorBath & Tennis Club Manager ix VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2016 Gopal Lalmalani, Village President Charlotte K. Pruss, Village Clerk BOARD OF TRUSTEES Donald N. Adler John Baar Michael Manzo Asif Yusuf Mark M. Moy Edward Tiesenga MANAGEMENT TEAM Riccardo Ginex Village Manager Jason Paprocki Finance Director Doug Patchin Public Works Director Robert Kallien Development Services Director James Fox Information Technology Director Barry Liss Fire Chief Susan Madorin Library Director James Kruger Police Chief Sean Creed Golf Course Superintendent Christopher Thompson Bath and Tennis Manager 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, 2016, 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, 2016 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 and other auditors 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, 2016 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, 2016 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, 2016 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. 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, 2015 (not presented herein), and have issued our report thereon dated May 6, 2016, 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, 2015 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 2015 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2015 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, 2015. 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 it. Oak Brook, Illinois April 25, 2017 (See independent auditors’ report) 4 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2016 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, 2016. 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, 2016, the Village’s total (combined governmental and business-type) assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $81.2 million (referred to as net position). • The Village’s total net position increased by $2.9 million, or 3.7%, compared to the prior year. • The governmental activities reported total net position of $46.8 million, which is an increase of $2.0 million, or 4.5%, in comparison to the prior year. The unrestricted portion of the net position is a $26.1 million deficit, which can be attributed to the Village’s unfunded pension liabilities. • The business-type activities reported total net position of $34.4 million, which is an increase of $0.9 million, or 2.7%, in comparison to the prior year. The unrestricted portion of the net position is $3.9 million. • The Village had a total deficit of $22.2 million of unrestricted net position at December 31, 2016. • Total revenues increased $3.2 million, or 7.8%, in comparison to the prior year. This is due to increases in sales, non-home rule sales, and utility tax collections and an increase in water sales revenue due to a rate increase. • Total expenses decreased $9.7 million, or 19.0%, in comparison to the prior year. This is primarily due to GASB Statements 68 and 71 being implemented in 2015, resulting in the recognition of initial pension expense during fiscal year 2015. 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 and operations of the Oak Brook Sports Core. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements to be more familiar. The focus of the presentation is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. 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 and the operations of the Oak Brook Sports Core. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village’s various functions. The Village uses internal service funds to account for the costs of health and dental insurance, garage operations, and the advance funding of equipment replacement. Because the Village’s costs for these items relate to both governmental and business-type functions, the costs have been allocated to each type of activity where appropriate. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Waterworks System and the Oak Brook Sports Core, both of which are considered to be major funds of the Village. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 26 through 30 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters’ Pension Fund. The basic fiduciary fund financial statements can be found on pages 31 and 32 of this report. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 7 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 34 through 80 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 81 through 93 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 102 through 123 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, 2016. 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 2016 and 2015. Table 1 Statement of Net Position Summary As of December 31, 2016 and 2015 (in millions) 2016 2015 2016 2015 2016 2015 Assets Current and Other Assets 38.4$ 34.7$ 5.3$ 3.5$ 43.7$ 38.2$ Capital Assets 60.7 61.3 30.6 31.4 91.3 92.7 Total Assets 99.1$ 96.0$ 35.9$ 34.9$ 135.0$ 130.9$ Deferred Outflows of Resources 7.2$ 7.6$ 0.9$ 0.4$ 8.1$ 8.0$ Liabilities Long-Term Liabilities 54.2$ 54.0$ 1.5$ 0.7$ 55.7$ 54.7$ Other Liabilities 3.2 4.1 0.7 1.0 3.9 5.1 Total Liabilities 57.4$ 58.1$ 2.2$ 1.7$ 59.6$ 59.8$ Deferred Inflows of Resources 2.1$ 0.7$ 0.2$ 0.1$ 2.3$ 0.8$ NET POSITION Net Investment in Capital Assets 60.5$ 60.7$ 30.5$ 31.4$ 91.0$ 92.1$ Restricted 12.4 11.3 - - 12.4 11.3 Unrestricted (26.1) (27.2) 3.9 2.1 (22.2) (25.1) Total Net Position 46.8$ 44.8$ 34.4$ 33.5$ 81.2$ 78.3$ Governmental Activities Business-Type Activities Total Primary Government Cash and investments included in current assets increased $2.8 million, or 10.3% compared to the prior year. The Village’s combined net position increased from $78.3 million to $81.2 million, or $2.9 million, during 2016. The Village’s combined unrestricted net position also increased $2.9 million during 2016. The unrestricted portion of net position still remains a deficit balance due to the unfunded pension liabilities. The net investment in capital assets is the largest portion of net position. This represents capital assets (land, buildings, improvements, equipment, infrastructure and construction in progress), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The Village uses these capital assets to provide services to its citizens and these assets are not available for future spending. For more detailed information, see the Statement of Net Position on page 17. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 9 Summary of Changes in Net Position The following table summarizes the revenues and expenses found on the Statement of Activities for 2016 and 2015: Table 2 Statement of Activities Summary For the Fiscal Year Ended December 31, 2016 and 2015 (in millions) 2016 2015 2016 2015 2016 2015 Revenues Program Revenues Charges for Services 3.5$ 3.0$ 12.2$ 10.8$ 15.7$ 13.8$ Grants and Contributions 0.3 0.2 - - 0.3 0.2 General Revenues Sales and Local Use Taxes 19.3 18.1 - - 19.3 18.1 Utility Taxes 6.0 5.7 - - 6.0 5.7 Other Taxes 2.7 2.8 - - 2.7 2.8 Investment Income 0.2 0.2 - - 0.2 0.2 Miscellaneous 0.1 0.3 - - 0.1 0.3 Transfers - (0.5) - 0.5 - - Total Revenues 32.1$ 29.8$ 12.2$ 11.3$ 44.3$ 41.1$ Expenses General Government 4.7$ 5.3$ -$ -$ 4.7$ 5.3$ Public Safety 17.2 24.6 - - 17.2 24.6 Public Works 6.4 7.7 - - 6.4 7.7 Culture and Recreation 1.5 1.5 - - 1.5 1.5 Waterworks System - - 8.0 8.0 8.0 8.0 Sports Core - - 3.3 3.7 3.3 3.7 Interest and Fiscal Charges 0.3 0.3 - - 0.3 0.3 Total Expenses 30.1$ 39.4$ 11.3$ 11.7$ 41.4$ 51.1$ Change in Net Position 2.0$ (9.6)$ 0.9$ (0.4)$ 2.9$ (10.0)$ Net Position - Beginning of Year 44.8 54.4 33.5 33.9 78.3 88.3 Net Position - End of Year 46.8$ 44.8$ 34.4$ 33.5$ 81.2$ 78.3$ Governmental Business-Type Total Primary Activities Activities Government Total revenues increased $3.2 million, or 7.8%, compared to the prior year. This is primarily due to increases in revenue collections from sales, non-home rule sales, and utility taxes, building and inspection permits, and water sales. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 10 Total expenses decreased $9.7 million, or 19.0%, compared to the prior year, which is mainly attributable to the implementation of GASB Statements 68 and 71 in 2015, which resulted in the initial recognition of prior pension expense. More detailed information on pensions can be found on pages 83 -92. The Village also spent less in 2016 on items such as legal fees, roadway resurfacing projects, and other miscellaneous equipment. Governmental Activities Revenues – Governmental Activities Charges for Services, 10.9% Grants and Contributions, 1.0% Sales and Local Use Taxes, 60.1% Utility Taxes, 18.7% Other Taxes, 8.4% Investment Income, 0.6% Miscellaneous, 0.3% Revenues By Source -Governmental Activities For the fiscal year ended December 31, 2016, revenues totaled $32.1 million, an increase of $2.3 million from 2015. Revenue from sales and use taxes, which continues to be the Village’s largest revenue source, amounted to $19.3 million or 60.1% of total revenue, an increase of $1.2 million or 6.6% from 2015. Utility taxes, which include the taxes imposed on electric, natural gas, and telecommunications services, were $6.0 million or 18.7% of total revenues. This represents an increase of $0.3 million, or 5.3%, from the comparable amount in 2015. The “other taxes” classification includes a number of different revenue sources including income taxes, personal property replacement taxes, and hotel taxes. For 2016, these revenues were $2.7 million or 8.4% of total revenues, which is a $0.1 million, or 0.4%, decrease from 2015. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 11 Expenses by Function – Governmental Activities General Government, 15.6% Public Safety, 57.1% Public Works, 21.3% Culture and Recreation, 5.0% Interest and Fiscal Charges, 1.0% Expenses by Function -Governmental Activities Expenses for the Village of Oak Brook for governmental activities amounted to a total of $30.1 million in 2016, a decrease of $9.3 million from 2015. The decrease is primarily due to the recognition of initial pension expense related to the implementation of GASB Statements 68 and 71 in 2015. General government expenses were $4.7 million, a decrease of $0.6 million, or 11.3%, from 2015 which was due to reduced legal fees, other contractual services, and IT equipment. Public Safety expenses were $17.2 million, a decrease of $7.4 million, or 30.1%, from 2015 primarily due to the recognition of initial pension expense during 2015 from the implementation of GASB Statements 68 and 71. Public works expenses were $6.4 million, a decrease of $1.3 million, or 16.9%, from 2015 due to reduced roadway resurfacing projects compared to last year. Culture and recreation expenses were $1.5 million, which was even with 2015. Business-type Activities The business-type activities net position increased $0.9 million, or 2.7%, compared to the prior year. For business-type activities, revenues for the waterworks system were $8.8 million, which VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 12 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 increased by $0.2 million compared to the prior year. For business-type activities, expenses for the waterworks system were $8.0 million or 70.8% of total business-type expenses, which is even with 2015. Sports Core expenses were $3.3 million or 29.2% of total business-type expenses, which is a decrease of $0.4 million compared to the prior year. Revenues and Expenses - Business-Type Activites For the Fiscal Year Ended December 31, 2016 Program Program Revenues Expenses Waterworks Sytem 8,812,128$ 7,933,966$ Sports Core 3,381,345 3,339,863 Total 12,193,473$ 11,273,829$ 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, 2016, the governmental funds (as presented on the balance sheet on pages 20 through 21) had a combined fund balance of $32.5 million, which is an increase of $3.9 million over the prior year. The economy has shown improvement in consumer spending and user fees used to support the General Fund. The fund balance in the General Fund increased $2.8 million from 2015 to 2016, to a total of $20.1 million. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 13 Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2016 Original Amended Budget Budget Actual Revenues Intergovernmental 13,670,390$ 13,670,390$ 14,274,831$ Utility Taxes 5,500,000 5,500,000 5,967,345 Licenses & Permits 1,473,650 1,473,650 1,882,598 Charges for Services 1,134,000 1,134,000 1,075,234 Other 690,590 690,590 717,952 Total Revenues 22,468,630$ 22,468,630$ 23,917,960$ Expenditures General Government 4,663,545$ 4,866,230$ 4,063,322$ Public Safety 16,207,670 16,201,385 15,146,642 Public Works 691,805 691,805 642,689 Culture and Recreation 1,010,995 1,010,995 957,642 Debt Service 294,545 294,545 294,541 Total Expenditures 22,868,560$ 23,064,960$ 21,104,836$ Other Financing Sources (Uses) Transfers In 662,600$ 662,600$ -$ Transfers Out (251,005) (251,005) - Total Other Financing Sources (Uses)411,595$ 411,595$ -$ Change in Fund Balance 11,665$ (184,735)$ 2,813,124$ Intergovernmental revenues were over budget due primarily to sales tax revenue receipts being $0.3 million higher than budget projections and State income and use tax revenue receipts being $0.3 million higher than budget projections. Utility taxes were over budget due to increased receipts of $0.5 million from a one-time payment in 2016. Licenses and permits revenue was $0.4 million over budget projections due to increased commercial development. Actual expenditures were $1.8 million below the original budget and $2.0 million below the amended budget. The Village continues to be conservative in its spending. The Village saw savings in personnel and capital costs in 2016 compared to budget projections. 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 account that exceeded its budget by more than 110%. In October, 2006 this policy was further VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 14 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 $2,500 in all other accounts. Capital Assets The following schedule reflects the Village’s capital asset balances as of December 31, 2016 and 2015. Table 4 Capital Assets As of December 31, 2016 and 2015 (in millions) 2016 2015 2016 2015 2016 2015 Land and Land Right of Way 33.2$ 33.2$ 8.3$ 8.3$ 41.5$ 41.5$ Construction in Progress 0.4 0.1 - 0.1 0.4 0.2 Buildings and Land Improvements 22.1 21.8 9.3 9.2 31.4 31.0 Machinery, Vehicles, and Equipment 9.8 9.5 6.0 6.0 15.8 15.5 Infrastructure 34.7 34.5 26.7 26.6 61.4 61.1 Total 100.2$ 99.1$ 50.3$ 50.2$ 150.5$ 149.3$ Accumulated Depreciation (39.5)$ (37.8)$ (19.7)$ (18.8)$ (59.2)$ (56.6)$ Total Capital Assets 60.7$ 61.3$ 30.6$ 31.4$ 91.3$ 92.7$ Governmental Activities Business-Type Activities Total Primary Government At year-end, the Village’s investment in capital assets (net of accumulated depreciation and related long-term debt) for both its governmental and business-type activities was $91.0 million, with a decrease of $1.1 million from 2015 (see Note II.C. in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2016 were: • For Governmental Activities, capital spending included: Heritage Center exterior building improvements, Butler Government Center restroom renovations, Butler Government Center electrical project design, pedestrian access way improvements, and various vehicle and equipment replacements. • For Business-Type Activities, capital spending included: fuel tank replacement, golf course drainage improvements, golf course mower replacements, and B&T locker room HVAC units. 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 $114,996,061 based on January 1, 2015 EAV of $1,336,534,043. As of December 31, 2016, the Village has $280,000 of debt outstanding VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 15 attributed to one installment contract that is applicable to the legal limit (see Note II.E. in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village’s outstanding long-term debt: Table 5 Long-term Debt As of December 31, 2016 Governmental Business-Type Total Primary Activities Activities Government General Fund Certificates: Series 2009 (Refunding)280,000$ -$ 280,000$ TIF Note Payable 3,507,263 3,507,263 Total 3,787,263$ -$ 3,787,263$ The General Fund Certificates are general obligations of the Village but are not secured by a pledge of property taxes. The General Fund Certificates, Series 2009 (refunding) received a rating of Aa2 from Moody’s Investor Service, Inc.. 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 $17.2 million to $20.0 million primarily due to an overall increase in revenues while controlling expenditure increases. Total 2016 General Fund revenues of $23.9 million was a $1.3 million increase from 2015. The Village’s intent is to hold some of this fund balance in reserves. The 2017 Budget continues to be a conservative financial plan while providing excellent services to its residents and business community. The 2017 budgeted revenues are $50.1 million, an increase of $1.0 million, or 2.0%, from the 2016 Budget (excludes Pension Trust and Foreign Fire Tax Funds). This is mostly due to modest increases in sales tax, utility/telecommunications tax, interest, and water sales. The total spending in the 2017 Budget is $51.4 million, which is even with 2016’s Budget of $51.4 million. This is mainly due to decreases in interfund VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 16 reimbursements and transfers and contractual services, which is offset by slight increases in personnel, materials & supplies, and capital spending. The projected ending cash balance for 2017 in the General Corporate Fund of $15.3 million is equal to 8.3 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, 2016 Governmental Activities Business- Type Activities Totals ASSETS Cash and investments $30,132,127 $3,424,653 $33,556,780 Receivables (net) Property taxes 354,800 -354,800 Sales taxes 5,464,192 -5,464,192 Utility taxes 1,220,588 -1,220,588 Accounts 378,340 -378,340 Billed and unbilled water sales -925,735 925,735 Allotments 18,701 -18,701 Accrued interest 70,225 6,434 76,659 Other 538,636 124,176 662,812 Internal balances (711,798)711,798 - Inventories 53,403 138,088 191,491 Prepaid items 831,778 83 831,861 Capital Assets Capital assets not being depreciated 33,548,446 8,292,265 41,840,711 Capital assets, net of accumulated depreciation 27,182,031 22,280,996 49,463,027 Total Assets 99,081,469 35,904,228 134,985,697 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 7,174,578 862,841 8,037,419 Total Deferred Outflows of Resources 7,174,578 862,841 8,037,419 LIABILITIES Accounts payable 1,492,610 499,594 1,992,204 Accrued payroll 701,931 58,393 760,324 Accrued interest 117,729 -117,729 Claims payable 42,919 -42,919 Deposits 703,015 78,263 781,278 Unearned revenue 120,895 18,402 139,297 Noncurrent Liabilities Due within one year 1,359,753 89,812 1,449,565 Due in more than one year 52,848,629 1,399,117 54,247,746 Total Liabilities 57,387,481 2,143,581 59,531,062 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 1,759,490 142,478 1,901,968 Deferred property taxes 354,800 -354,800 Total Deferred Inflows of Resources 2,114,290 142,478 2,256,768 NET POSITION Net investment in capital assets 60,450,477 30,573,261 91,023,738 Restricted for Infrastructure 6,766,002 -6,766,002 Highways and streets 927,385 -927,385 Fire department 203,183 -203,183 Culture and recreation 4,293,506 -4,293,506 Economic development 249,278 -249,278 Unrestricted (26,135,555)3,907,749 (22,227,806) TOTAL NET POSITION $46,754,276 $34,481,010 $81,235,286 See accompanying notes to financial statements. Page 17 VILLAGE OF OAK BROOK STATEMENT OF ACTIVITIES For the Year Ended December 31, 2016 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities General government $4,658,830 $2,147,847 $-$- Public safety 17,162,874 1,310,418 46,280 - Public works 6,444,838 15,893 200,706 25,804 Culture, education and recreation 1,521,582 13,296 -- Interest and fiscal charges 304,184 --- Total Governmental Activities 30,092,308 3,487,454 246,986 25,804 Business-type Activities Waterworks System 7,933,966 8,812,128 -- Sports Core 3,339,164 3,381,345 -- Total Business-type Activities 11,273,130 12,193,473 -- Total $41,365,438 $15,680,927 $246,986 $25,804 General Revenues Taxes Property Sales, local use Utility taxes Hotel/motel Other Intergovernmental 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 $(2,510,983)$-$(2,510,983) (15,806,176)-(15,806,176) (6,202,435)-(6,202,435) (1,508,286)-(1,508,286) (304,184)-(304,184) (26,332,064)-(26,332,064) -878,162 878,162 -42,181 42,181 -920,343 920,343 (26,332,064)920,343 (25,411,721) 354,829 -354,829 6,292,168 -6,292,168 5,967,345 -5,967,345 1,270,131 -1,270,131 67,246 -67,246 12,969,830 -12,969,830 767,362 -767,362 279,782 -279,782 79,706 -79,706 241,213 16,005 257,218 35,053 -35,053 28,324,665 16,005 28,340,670 1,992,601 936,348 2,928,949 44,761,675 33,545,361 78,307,036 $46,754,276 $34,481,709 $81,235,985 See accompanying notes to financial statements. Page 19 VILLAGE OF OAK BROOK BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2016 General Hotel/Motel Tax Infrastructure Promenade TIF AS SETS Cash and investments $16,510,154 $4,403,430 $5,419,586 $249,278 Receivables Property taxes ---354,800 Sales taxes 3,715,915 -1,748,277 - Utility taxes 1,220,588 --- Accounts 378,340 --- Allotments ---- Accrued interest 47,339 7,186 9,644 - Other 331,680 106,766 72,738 - Inventories 1,355 --- Prepaid items 57,089 --- TOTAL ASSETS $22,262,460 $4,517,382 $7,250,245 $604,078 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $590,501 $223,876 $370,270 $- Accrued payroll 655,016 -41,235 - Deposits 703,015 --- Unearned revenues 81,271 --- Total Liabilities 2,029,803 223,876 411,505 - Deferred Inflows of Resources Deferred property taxes ---354,800 Unavailable other receivables 160,113 -72,738 - Total Deferred Inflows of Resources 160,113 -72,738 354,800 Fund Balances Nonspendable for inventory 1,355 --- Nonspendable for prepaid items 57,089 --- Restricted for infrastructure --6,766,002 - Restricted for highways and streets ---- Restricted for fire department ---- Restricted for culture and recreation -4,293,506 -- Restricted for economic development ---249,278 Unassigned 20,014,100 --- Total Fund Balances 20,072,544 4,293,506 6,766,002 249,278 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $22,262,460 $4,517,382 $7,250,245 $604,078 See accompanying notes to financial statements. Page 20 Nonmajor Governmental Funds Totals $1,110,119 $27,692,567 -354,800 -5,464,192 -1,220,588 -378,340 18,701 18,701 1,748 65,917 -511,184 -1,355 -57,089 $1,130,568 $35,764,733 $-$1,184,647 -696,251 -703,015 -81,271 -2,665,184 -354,800 -232,851 -587,651 -1,355 -57,089 -6,766,002 927,385 927,385 203,183 203,183 -4,293,506 -249,278 -20,014,100 1,130,568 32,511,898 $1,130,568 $35,764,733 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, 2016 Total Fund Balances - Governmental Funds $32,511,898 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.57,151,600 Unavailable other receivables recognized in the statement of net position do not provide current financial resources and are inclded as deferred inflows of resources in the governmental funds balance sheet.232,851 Interest payable is not due and payable in the current period and, therefore, is not reported in the governmental funds.(117,729) Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.7,121,141 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(1,750,666) Internal service funds are reported in the statement of net position as governmental activities.5,713,884 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. Installment contracts payable (280,000) Notes payable (3,507,263) Compensated absences payable (1,069,583) Net pension liability (48,683,567) Net other postemployment benefit obligation (568,290) NET POSITION OF GOVERNMENTAL ACTIVITIES $46,754,276 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, 2016 General Hotel/Motel Tax Infrastructure Promenade TIF REVENUES Intergovernmental $14,274,831 $-$25,804 $103,007 Non-home rule sales tax --5,991,262 - Utility taxes 5,967,345 --- Hotel and motel taxes -1,270,131 -- Licenses and permits 1,882,598 --- Charges for services 1,075,234 --- Property taxes ---354,829 Fines, forfeitures and penalties 159,799 --- Investment income 136,186 17,993 39,800 389 Miscellaneous 421,967 --- Total Revenues 23,917,960 1,288,124 6,056,866 458,225 EXPENDITURES Current General government 4,063,322 90,305 186,013 3,938 Public safety 15,146,642 --- Public works 642,689 -5,412,968 - Culture and recreation 957,642 751,823 -- Debt Service Principal 275,000 --145,000 Interest and fiscal charges 19,541 --290,220 Total Expenditures 21,104,836 842,128 5,598,981 439,158 Excess (deficiency) of revenues over expenditures 2,813,124 445,996 457,885 19,067 OTHER FINANCING USES Transfers in --516,221 - Transfers out ---- Total Other Financing Uses --516,221 - Net Change in Fund Balances 2,813,124 445,996 974,106 19,067 FUND BALANCES - Beginning of Year 17,259,420 3,847,510 5,791,896 230,211 FUND BALANCES - END OF YEAR $20,072,544 $4,293,506 $6,766,002 $249,278 See accompanying notes to financial statements. Page 23 Nonmajor Governmental Funds Totals $253,964 $14,657,606 -5,991,262 -5,967,345 -1,270,131 -1,882,598 -1,075,234 -354,829 -159,799 9,099 203,467 -421,967 263,063 31,984,238 -4,343,578 43,421 15,190,063 -6,055,657 -1,709,465 -420,000 -309,761 43,421 28,028,524 219,642 3,955,714 -516,221 (516,221)(516,221) (516,221)- (296,579)3,955,714 1,427,147 28,556,184 $1,130,568 $32,511,898 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, 2016 Net change in fund balances - total governmental funds $3,955,714 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 876,358 Depreciation is reported in the government-wide financial statements (1,503,645) 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.232,851 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.420,000 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 (96,870) Interest payable 5,574 Net postemployment benefits obligation (143,665) Net pension liability (471,467) Deferred outflows of resources related to pensions (411,855) Deferred inflows of resources related to pensions (1,342,890) The change in net position of certain activities of internal service funds is included in governmental activities.472,496 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $1,992,601 See accompanying notes to financial statements. Page 25 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2016 Business-type Activities - Enterprise Funds Waterworks System Sports Core Totals Governmental Activities - Internal Service Funds ASSETS Current Assets Cash and investments $2,724,004 $700,649 $3,424,653 $2,439,560 Receivables Billed and unbilled water sales 925,735 -925,735 - Accrued interest 4,798 1,636 6,434 4,308 Other 39,364 84,812 124,176 27,452 Inventories -138,088 138,088 52,048 Prepaid items 83 -83 774,689 Total Current Assets 3,693,984 925,185 4,619,169 3,298,057 Noncurrent Assets Capital assets not being depreciated 215,800 8,076,465 8,292,265 - Capital assets, net of accumulated depreciation 18,321,967 3,959,029 22,280,996 3,578,877 Total Noncurrent Assets 18,537,767 12,035,494 30,573,261 3,578,877 Total Assets 22,231,751 12,960,679 35,192,430 6,876,934 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 350,718 512,123 862,841 53,437 Total Deferred Outflows of Resources 350,718 512,123 862,841 53,437 See accompanying notes to financial statements. Page 26 Business-type Activities - Enterprise Funds Waterworks System Sports Core Totals Governmental Activities - Internal Service Funds LIABILITIES Current Liabilities Accounts payable 421,288 78,306 499,594 307,963 Accrued payroll 35,038 23,355 58,393 5,680 Compensated absences payable 54,441 35,371 89,812 10,170 Deposits 143 78,120 78,263 - Unearned revenues -18,402 18,402 39,624 Claims payable ---42,919 Total Current Liabilities 510,910 233,554 744,464 406,356 Noncurrent Liabilities Net pension liability - IMRF 537,874 785,411 1,323,285 81,953 Other post employment benefits payable 48,739 27,093 75,832 7,556 Total Noncurrent Liabilities 586,613 812,504 1,399,117 89,509 Total Liabilities 1,097,523 1,046,058 2,143,581 495,865 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 57,913 84,565 142,478 8,824 Total Deferred Inflows of Resources 57,913 84,565 142,478 8,824 NET POSITION Investment in capital assets 18,537,767 12,035,494 30,573,261 3,578,877 Unrestricted 2,889,266 306,685 3,195,951 2,846,805 TOTAL NET POSITION $21,427,033 $12,342,179 33,769,212 $6,425,682 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds.711,798 (711,798) Net Position Business-type Activities $34,481,010 Net internal service funds reported in the statement of net position as governmental activities $5,713,884 See accompanying notes to financial statements. Page 27 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2016 Business-type Activities - Enterprise Funds Waterworks System Sports Core Totals Governmental Activities - Internal Service Funds OPERATING REVENUES Charges for services $8,812,128 $3,383,857 $12,195,985 $4,315,638 Total Operating Revenues 8,812,128 3,383,857 12,195,985 4,315,638 OPERATING EXPENSES Operation of facilities 7,369,401 3,052,368 10,421,769 499,878 Claims and insurance ---2,806,534 Miscellaneous ---24,482 Depreciation and amortization 590,178 294,826 885,004 579,591 Total Operating Expenses 7,959,579 3,347,194 11,306,773 3,910,485 Operating Income 852,549 36,663 889,212 405,153 NONOPERATING REVENUES (EXPENSES) Investment income 12,631 3,374 16,005 20,581 Gain (loss) on disposal of capital assets -(2,512)(2,512)79,706 Total Nonoperating Revenues (Expenses)12,631 862 13,493 100,287 Change in Net Position 865,180 37,525 902,705 505,440 NET POSITION - Beginning of Year 20,561,853 12,304,654 5,920,242 NET POSITION - END OF YEAR $21,427,033 $12,342,179 $6,425,682 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds 32,944 Change in Net Position of Business-type Activities $935,649 See accompanying notes to financial statements. Page 28 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2016 Business-type Activities - Enterprise Funds Waterworks System Sports Core Totals Governmental Activities - Internal Service Funds CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $8,660,211 $3,345,527 $12,005,738 $1,074,995 Receipts from internal service transactions ---3,258,920 Paid to suppliers for goods and services (6,848,316)(1,702,439)(8,550,755)(3,336,264) Paid to employees for services (575,940)(1,209,570)(1,785,510)(108,053) Net Cash Flows From Operating Activities 1,235,955 433,518 1,669,473 889,598 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured 381,591 295,271 676,862 492,800 Investment income 15,735 4,001 19,736 24,100 Purchase of investments (538,608)(454,992)(993,600)(453,416) Net Cash Flows From Investing Activities (141,282)(155,720)(297,002)63,484 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets -(94,567)(94,567)(1,230,589) Proceeds from sale of capital assets ---107,509 Net Cash Flows From Capital and Related Financing Activities -(94,567)(94,567)(1,123,080) Net Change in Cash and Cash Equivalents 1,094,673 183,231 1,277,904 (169,998) CASH AND CASH EQUIVALENTS - Beginning of Year 368,671 87,597 456,268 1,477,587 CASH AND CASH EQUIVALENTS - END OF YEAR $1,463,344 $270,828 $1,734,172 $1,307,589 See accompanying notes to financial statements. Page 29 Business-type Activities - Enterprise Funds Waterworks System Sports Core Totals Governmental Activities - Internal Service Funds RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING AC TIVITIES Operating income $852,549 $36,663 $889,212 $405,153 Adjustments to Reconcile Operating Income to Net Cash Flows From Operating Activities Depreciation 590,178 294,826 885,004 579,591 Changes in assets and liabilities Accounts receivable (24,546)(45,618)(70,164)63,928 Inventory -40,110 40,110 (17,586) Prepaids (83)-(83)(19,420) Deferred outflows - pensions (163,947)(232,962)(396,909)11,876 Billed and unbilled water sales (125,564)-(125,564)- Accounts payable (130,314)35,464 (94,850)11,230 Customer deposits (1,807)9,685 7,878 - Accrued salaries 7,691 (20)7,671 (34,298) Compensated absences payable 6,190 (12,281)(6,091)2,965 Claims payable ---(25,385) Other post employment benefits payable 10,169 8,567 18,736 (575) Net pension liability 210,289 295,779 506,068 (32,603) Deferred inflows - pensions 5,150 5,702 10,852 (9,627) Unearned revenues -(2,397)(2,397)(45,651) NET CASH FLOWS FROM OPERATING ACTIVITIES $1,235,955 $433,518 $1,669,473 $889,598 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION - PROPRIETARY FUNDS Cash and cash equivalents $1,463,344 $270,828 $1,734,172 $1,307,589 Investments 1,260,660 429,821 1,690,481 1,131,971 CASH AND INVESTMENTS $2,724,004 $700,649 $3,424,653 $2,439,560 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None See accompanying notes to financial statements. Page 30 VILLAGE OF OAK BROOK STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS As of December 31, 2016 Pension Trusts ASSETS Cash $643,727 Investments Certificates of deposit 1,140,225 Money markets 3,189,938 U.S. treasuries 803,901 U.S. agencies 8,662,734 State and local obligations 2,550,171 Corporate bonds 6,425,756 Mutual funds 34,955,980 Accrued interest 176,898 Prepaid items 5,063 Total Assets 58,554,393 LIABILITIES Accounts payable 24,923 Total Liabilities 24,923 NET POSITION Restricted for pension benefits 58,529,470 TOTAL NET POSITION $58,529,470 See accompanying notes to financial statements. Page 31 VILLAGE OF OAK BROOK STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2016 Pension Trusts AD DITIONS Contributions Employer $3,329,403 Employee 657,013 Total Contributions 3,986,416 Investment income Net depreciation in fair value 2,282,632 Interest 1,815,270 Total Investment Income 4,097,902 Less Investment expense 127,564 Net Investment Income 3,970,338 Total Additions 7,956,754 DEDUCTIONS Benefits and refunds 5,010,109 Administrative 80,089 Total Deductions 5,090,198 Net Decrease in Net Position 2,866,556 NET POSITION - Beginning of Year 55,662,914 NET POSITION - END OF YEAR $58,529,470 See accompanying notes to financial statements. Page 32 VILLAGE OF OAK BROOK INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE Page I Summary of Significant Accounting Policies 34 A.Reporting Entity 34 B.Government-W ide and Fund Financial Statements 35 C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation 37 D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 39 1.Deposits and Investments 39 2.Receivables 42 3.Inventories and Prepaid Items 43 4.Capital Assets 43 5.Deferred Outflows of Resources 44 6.Compensated Absences 44 7.Long-Term Obligations 45 8.Deferred Inflows of Resources 45 9. Equity Classifications 46 II Detailed Notes on All Funds 47 A.Deposits and Investments 47 B.Receivables 54 C.Capital Assets 55 D.Interfund Transfers 57 E.Long-Term Obligations 58 III Other Information 60 A.Employees' Retirement System 60 B.Risk Management 74 C.Commitments and Contingencies 76 D.Other Postemployment Benefits 76 E.Tax Abatement 79 F.Effect of New Accounting Standards on Current-Period Financial Statements 80 See accompanying notes to financial statements. Page 33 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 of Oak Brook, Illinois 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 34 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS In February 2015, the GASB issued statement No. 72 - Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This standard was implemented January 1, 2016. In August 2015, the GASB issued statement No. 77 - Tax Abatement Disclosures. This statement addresses financial reporting related to tax abatement programs. It establishes requirements for disclosures about a reporting government's own tax abatements agreements and agreements entered into by other governments that reduce the reporting government's tax revenues. This standard was implemented January 1, 2016. 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 35 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 36 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 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 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 Fire Pension 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. Page 37 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) Government-Wide Financial Statements (cont.) 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. 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. Page 38 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) 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. 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 8%0.50% Fixed income 32%2.50% Mutual funds 60%5.50% Page 39 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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.) 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, 2016 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 2%0.50% Fixed income 38%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. 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, 2016 is summarized in the table above. The Village has adopted an investment policy. That policy follows the state statute for allowable investments. Page 40 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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.) 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 41 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 2016 attaches as an enforceable lien on January 1, 2016, 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 2016 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 42 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 43 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 44 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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, 2016, 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, installment contracts payable, net pension liabilities, net otherpostemployment 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 45 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 46 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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. 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. Page 47 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Petty cash $3,600 $-N/A Deposits 1,663,255 3,224,993 Custodial credit risk Money markets 3,189,938 3,189,938 Credit risk Illinois funds 12,390,796 12,390,796 Credit risk Certificates of deposit (Non-negotiable)7,264,510 7,264,510 Custodial credit risk Corporate bonds 10,091,180 10,091,180 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk U.S. treasury obligations 803,901 803,901 Custodial credit risk, interest rate risk U.S. agency obligations - explicit 2,824,095 2,824,095 Custodial credit risk, interest rate risk U.S. agency obligations - implicit 8,632,764 8,632,764 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Mutual funds - other than bond funds 34,955,980 34,955,980 N/A State and local obligations 10,109,193 10,109,193 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Total Deposits and Investments $91,929,212 $93,487,350 Page 48 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 $33,556,780 Per statement of net position - fiduciary funds Cash 643,727 Certificates of deposit 1,140,225 Money markets 3,189,938 U.S. treasuries 803,901 U.S. agencies 8,662,734 Corporate bonds 6,425,756 Mutual funds 34,955,980 State and local obligations 2,550,171 Total Deposits and Investments $91,929,212 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, 2016, 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 $-$2,794,125 $-$2,794,125 State and local obligations -7,559,022 -7,559,022 Corporate bonds -3,665,424 -3,665,424 Illinois funds -12,390,796 -12,390,796 Total $-$26,409,367 $-$26,409,367 Page 49 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 $-$4,723,644 $-$4,723,644 State and local obligations -1,180,474 -1,180,474 Mutual funds 19,950,332 --19,950,332 Corporate bonds -4,143,333 -4,143,333 Total $19,950,332 $10,047,451 $-$29,997,783 Firefighters' Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$3,939,090 $-$3,939,090 U.S. treasuries -803,901 -803,901 State and local obligations -1,369,697 -1,369,697 Mutual funds 15,005,648 --15,005,648 Corporate bonds -2,282,423 -2,282,423 Total $15,005,648 $8,395,111 $-$23,400,759 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 50 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Credit Risk (cont.) As of December 31, 2016, investments were rated as follows: Village Investment Type Standard & Poors Moody's Investors Services U.S. agency securities - implicit AA+AAA State and local obligations A to AAA A1 to Aa3 Corporate bonds A- to A A2 Illinois funds AAAm Not rated Police Pension Investment Type Standard & Poors Moody's Investors Services U.S. agency securities - implicit AA+AAA State and local obligations A to AA-Baa1 Corporate bonds BBB to AA-Baa2 to A1 Firefighters' Pension Investment Type Standard & Poors Moody's Investors Services U.S. agency securities - implicit AA+Aaa State and local obligations AA- to AAA A1 to Aa1 Corporate bonds BBB+ to AA+Baa1 to Aa1 Page 51 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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, 2016, the investment portfolio was concentrated as follows: Village Issuer Investment Type Percentage of Net Position Grundy Kendall & W ill Countys IL State and local obligations 5.00% American Express CR Corp Corporate bonds 8.00% National City Bank Cleveland Corporate bonds 5.00% Wachovia Corp NT Corporate bonds 5.00% 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, 2016, 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 - implicit $597,224 $-$597,224 $-$- U.S. agency securities - explicit 2,196,901 -1,245,735 -951,166 State and local obligations 7,559,022 3,958,660 3,098,387 501,975 - Corporate bonds 3,665,424 3,665,424 --- Totals $14,018,571 $7,624,084 $4,941,346 $501,975 $951,166 Page 52 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 More than 10 U.S. agency securities - implicit $4,341,767 $841,677 $1,556,458 $1,943,632 $- U.S. agency securities - explicit 381,877 -381,495 382 - State and local obligations 1,180,474 -645,474 535,000 - Corporate bonds 4,143,333 -2,107,039 2,036,294 - Totals $10,047,451 $841,677 $4,690,466 $4,515,308 $- Firefighters' Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - implicit $3,693,773 $-$804,035 $2,889,738 $- U.S. agency securities - explicit 245,317 -41,784 203,533 - U.S. treasury 803,901 152,875 296,581 354,445 - State and local obligations 1,369,697 -471,132 704,419 194,146 Corporate bonds 2,282,423 237,600 1,339,869 704,954 - Totals $8,395,111 $390,475 $2,953,401 $4,857,089 $194,146 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2016, the annual money-weighted rate of return on the police pension plan investments, net of pension plan investment expense, was 6.89%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Page 53 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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, 2016, the annual money-weighted rate of return on the firefighters' pension plan investments, net of pension plan investment expense, was 7.62%. 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 54 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS Capital asset activity for the year ended December 31, 2016, 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 94,634 308,088 22,221 380,501 Total Capital Assets Not Being Depreciated 33,262,579 308,088 22,221 33,548,446 Capital assets being depreciated Buildings, building and land improvements 21,817,391 311,618 -22,129,009 Computer equipment 1,096,240 16,644 -1,112,884 Other equipment 1,696,961 92,738 53,077 1,736,622 Vehicles 31,006 --31,006 Infrastructure 34,528,629 169,491 -34,698,120 Internal service fund vehicles 6,692,677 715,040 467,127 6,940,590 Total Capital Assets Being Depreciated 65,862,904 1,305,531 520,204 66,648,231 Total Capital Assets 99,125,483 1,613,619 542,425 100,196,677 Less: Accumulated depreciation for Buildings, building and land improvements (8,147,985)(632,287)-(8,780,272) Computer equipment (883,476)(61,286)-(944,762) Other equipment (1,440,318)(69,514)53,077 (1,456,755) Vehicles (31,006)--(31,006) Infrastructure (24,151,134)(740,558)-(24,891,692) Internal service fund vehicles (3,221,446)(579,592)439,325 (3,361,713) Total Accumulated Depreciation (37,875,365)(2,083,237)492,402 (39,466,200) Net Capital Assets Being Depreciated 27,987,539 (777,706)27,802 27,182,031 Total Governmental Activities Capital Assets, Net of Accumulated Depreciation $61,250,118 $(469,618)$50,023 $60,730,477 Page 55 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Governmental Activities General government $402,979 Public safety 400,974 Public works 1,150,935 Culture and recreation 128,349 Total Governmental Activities Depreciation Expense $2,083,237 Beginning Balance Additions Deletions Ending Balance Business-type Activities Capital assets not being depreciation Land $8,292,265 $-$-$8,292,265 Construction in progress 60,229 -60,229 - Total Capital Assets Not Being Depreciation 8,352,494 -60,229 8,292,265 Capital assets being depreciated Land improvements 3,185,353 33,136 -3,218,489 Buildings and building improvements 6,036,464 24,200 10,048 6,050,616 Infrastructure 26,622,247 60,229 -26,682,476 Vehicles, machinery, and equipment 5,981,224 37,230 25,991 5,992,463 Total Capital Assets Being Depreciated 41,825,288 154,795 36,039 41,944,044 Total Capital Assets 50,177,782 154,795 96,268 50,236,309 Less: Accumulated depreciation for Land improvements (2,480,643)(62,293)-(2,542,936) Buildings and building improvements (3,069,427)(129,707)7,536 (3,191,598) Infrastructure (8,546,681)(428,819)-(8,975,500) Vehicles, machinery, and equipment (4,714,820)(264,185)25,991 (4,953,014) Total Accumulated Depreciation (18,811,571)(885,004)33,527 (19,663,048) Net Capital Assets Being Depreciated 23,013,717 (730,209)2,512 22,280,996 Business-type Capital Assets, Net of Accumulated Depreciation $31,366,211 $(730,209)$62,741 $30,573,261 Page 56 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Business-type Activities Waterworks $590,178 Sports Core 294,826 Total Business-type Activities Depreciation Expense $885,004 D.INTERFUND TRANSFERS The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose Infrastructure Nonmajor Governmental $516,221 Provide funding for street paving and installation of a sidewalk Total - Fund Financial Statements $516,221 Less: Fund eliminations (516,221) 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 57 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2016, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Installment contracts payable $555,000 $-$275,000 $280,000 $280,000 Notes payable 3,652,263 -145,000 3,507,263 - Net pension liability - IMRF 2,407,676 1,205,419 -3,613,095 - Net pension liability - police 21,318,136 -444,513 20,873,623 - Net pension liability - fire 24,600,844 -322,042 24,278,802 - Net other postemployment benefit obligation 432,756 143,665 575 575,846 - Compensated absences 979,918 1,079,753 979,918 1,079,753 1,079,753 Total Governmental Activities Long-Term Liabilities $53,946,593 $2,428,837 $2,167,048 $54,208,382 $1,359,753 Business-type Activities Net pension liability - IMRF $817,217 $506,068 $-$1,323,285 $- Net other postemployment benefit obligation 57,096 18,736 -75,832 - Compensated absences 95,903 89,812 95,903 89,812 89,812 Total Business-type Activities Long-Term Liabilities $970,216 $614,616 $95,903 $1,488,929 $89,812 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, 2016, the statutory debt limit for the Village was $115,276,061, providing a debt margin of $114,996,061. The compensated absences for governmental activities typically have been liquidated by the General Fund and the Infrastructure Fund. The net pension liabilities and other postemployment benefit obligation have typically been liquidated by the General Fund. Installment Contracts The Village has issued installment contracts payable to provide funds for the acquisition of capital assets. The installment contracts payable at December 31, 2016 currently outstanding are as follows: Governmental Activities Installment Contracts Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2016 General Fund Refunding Certificates, Series 2009 July 15, 2009 December 1, 2017 2.00% - 3.50%$2,280,000 $280,000 Total Governmental Activities Installment Contracts $280,000 Page 58 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS (cont.) Installment Contracts (cont.) Debt service requirements to maturity are as follows: Governmental Activities Installment Contracts Years Principal Interest 2017 $280,000 $9,800 Totals $280,000 $9,800 Notes Payable The Village has issued notes payable related to developer and intergovernmental agreements. Notes payable at December 31, 2016 consist of the following: Governmental Activities Notes Payable Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2016 TIF developer note June 6, 2005 February 1, 2024 8.00%$4,250,000 $3,507,263 Total Governmental Activities Notes Payable $3,507,263 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. Page 59 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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. 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, 2015, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 101 Inactive, non-retired members 84 Active members 71 Total 256 Page 60 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) 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 2016 was 13.67% 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, 2015, 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. Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2015 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.47% 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. Page 61 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) 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% Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.47%. The discount rate calculated using the December 31, 2014 measurement date was 7.49%. 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 not to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments of 7.50% was blended with the index rate of 3.57% for tax exempt 20-year general obligation municipal bonds with an average AA credit rating at December 31, 2015 to arrive at a discount rate of 7.47%used to determine the total pension liability. The year ending December 31, 2083 is the last year in the 2016 to 2115 projection period for which projected benefit payments are fully funded. 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 7.47% 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 (6.47%) or 1 percentage point higher (8.47%) than the current rate: Page 62 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) 1% Decrease Current Discount Rate 1% Increase Total pension liability $41,662,334 $36,777,570 $32,779,076 Plan fiduciary net pension 31,841,190 31,841,190 31,841,190 Net pension liability/(asset)$9,821,144 $4,936,380 $937,886 Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar year ended December 31, 2015 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Balances at December 31, 2014 $35,356,455 $32,131,562 $3,224,893 Service cost 581,062 -581,062 Interest on total pension liability 2,615,047 -2,615,047 Differences between expected and actual experience of the total pension liability (398,570)-(398,570) Change of assumptions 89,849 -89,849 Benefit payments, including refunds of employee contributions (1,466,273)(1,466,273)- Contributions - employer -715,089 (715,089) Contributions - employee -238,021 (238,021) Net investment income -159,375 (159,375) Other (net transfer)-63,416 (63,416) Balances at December 31, 2015 $36,777,570 $31,841,190 $4,936,380 Plan fiduciary net position as a percentage of the total pension liability %86.58 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2016, the Village recognized pension expense of $1,055,389. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Page 63 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $-$531,498 Assumption changes 464,780 - Net difference between projected and actual earnings on pension plan investments 2,038,437 - Contributions subsequent to the measurement date 715,520 - Total $3,218,737 $531,498 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 ($1,971,719) will be recognized in pension expense as follows: Year Ending December 31,Village 2016 $553,719 2017 440,703 2018 530,570 2019 446,727 Total $1,971,719 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. Page 64 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) 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. 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, 2016, the Police Pension membership consisted of: Retirees and beneficiaries 35 Inactive, non-retired members 2 Active members 40 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, 2016 was 42.08% of annual covered payroll. 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 annual actuarial valuation as of that date. Page 65 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) 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. Actuarial Assumptions. The total pension liability was determined by an actuarial valuation 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 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-2000 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. 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. Page 66 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) 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 $61,480,670 $54,407,673 $48,148,383 Plan fiduciary net position 33,534,050 33,534,050 33,534,050 Net pension liability $27,946,620 $20,873,623 $14,614,333 Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2016 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2015 $53,169,364 $31,851,228 $21,318,136 Service cost 800,389 -800,389 Interest on total pension liability 3,563,145 -3,563,145 Differences between expected and actual experience of the total pension liability (856,825)-(856,825) Change of assumptions 96,439 -96,439 Benefit payments, including refunds of employee contributions (2,364,839)(2,364,839)- Contributions - employer -1,527,927 (1,527,927) Contributions - employee -383,238 (383,238) Net investment income -2,176,018 (2,176,018) Administration -(39,522)39,522 Balances at December 31, 2016 $54,407,673 $33,534,050 $20,873,623 Page 67 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2016, the Village recognized pension expense of $2,562,155. 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 $-$714,283 Assumption changes 1,035,430 - Net difference between projected and actual earnings on pension plan investments 1,579,342 34,164 Total $2,614,772 $748,447 The amounts reported as deferred outflows and inflows of resources related to pensions ($1,866,325) will be recognized in pension expense as follows: Year Ending December 31,Amount 2017 $675,650 2018 675,650 2019 675,644 2020 (160,619) Total $1,866,325 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. Page 68 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) 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. Plan membership. At December 31, 2016, 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, 2016, 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, 2016 was 63.92% of annual covered payroll. 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 annual actuarial valuation as of that date. Page 69 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) 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. Actuarial assumptions. The total pension liability was determined by an actuarial valuation 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 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-2000 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated September 26, 2012. 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. Page 70 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) 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 $55,187,129 $49,274,222 $43,994,841 Plan fiduciary net position 24,995,420 24,995,420 24,995,420 Net pension liability $30,191,709 $24,278,802 $18,999,421 Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2016 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2015 $48,412,530 $23,811,686 $24,600,844 Service cost 756,771 -756,771 Interest on total pension liability 3,229,650 -3,229,650 Differences between expected and actual experience of the total pension liability (569,891)-(569,891) Change of assumptions 90,432 -90,432 Benefit payments, including refunds of employee contributions (2,645,270)(2,645,270)- Contributions - employer -1,801,476 (1,801,476) Contributions - employee -273,775 (273,775) Net investment income -1,794,320 (1,794,320) Administration -(40,567)40,567 Balances at December 31, 2016 $49,274,222 $24,995,420 $24,278,802 Page 71 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2016, the Village recognized pension expense of $2,739,633. 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 $98,254 $455,913 Assumption changes 957,151 - Net difference between projected and actual earnings on pension plan investments 1,148,505 166,110 Total $2,203,910 $622,023 The amounts reported as deferred outflows and inflows of resources related to pensions ($1,581,887) will be recognized in pension expense as follows: Year Ending December 31,Amount 2017 $573,102 2018 573,102 2019 573,100 2020 (137,417) Total $1,581,887 Page 72 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) PENSION SEGMENT INFORMATION Fiduciary Net Position Pension Trust Police Pension Firefighters' Pension Total Assets Cash and investments $96,379 $547,348 $643,727 Investments Certificates of deposit 635,945 504,280 1,140,225 Money markets 2,702,045 487,893 3,189,938 U.S. treasuries -803,901 803,901 U.S. agencies 4,723,644 3,939,090 8,662,734 State and local obligations 1,180,474 1,369,697 2,550,171 Corporate bonds 4,143,333 2,282,423 6,425,756 Mutual funds 19,950,332 15,005,648 34,955,980 Receivables Accrued interest 110,953 65,945 176,898 Prepaid items 2,960 2,103 5,063 Total Assets 33,546,065 25,008,328 58,554,393 Liabilities Accounts payable 12,015 12,908 24,923 Total Liabilities 12,015 12,908 24,923 Net Position Restricted for pension benefits $33,534,050 $24,995,420 $58,529,470 Page 73 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 $1,527,927 $1,801,476 $3,329,403 Employee 383,238 273,775 657,013 Total Contributions 1,911,165 2,075,251 3,986,416 Investment income Net depreciation in fair value 1,296,696 985,936 2,282,632 Interest 960,781 854,489 1,815,270 Total Investment income 2,257,477 1,840,425 4,097,902 Less investment expense 81,459 46,105 127,564 Net investment income 2,176,018 1,794,320 3,970,338 Total Additions 4,087,183 3,869,571 7,956,754 Deductions Benefits and refunds 2,364,839 2,645,270 5,010,109 Administrative 39,522 40,567 80,089 Total Deductions 2,404,361 2,685,837 5,090,198 Net Decrease in Net Position 1,682,822 1,183,734 2,866,556 Net Position, Beginning of Year 31,851,228 23,811,686 55,662,914 Net Position, End of Year $33,534,050 $24,995,420 $58,529,470 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 $2,343,665 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 74 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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.$42,919 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 $121,423 $68,304 Current year claims and changes in estimates 2,084,911 (2,002,611) Claim payments (2,138,030)1,977,226 Unpaid Claims - End of Year $68,304 $42,919 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 75 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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, 2016. 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, 2016, 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 76 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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, 2016, all retirees contributed $468,424 and the Village contributed $301,502. 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 $468,424 Interest on net OPEB obligation 22,043 Adjustment to annual required contribution (27,139) Annual OPEB cost 463,328 Contributions made (301,502) Increase in net OPEB obligation (asset)161,826 Net OPEB Obligation (Asset) - Beginning of Year 489,852 Net OPEB Obligation (Asset) - End of Year $651,678 The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2016 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, 2014 $420,586 64.80%$319,305 December 31, 2015 439,792 61.22%489,852 December 31, 2016 463,328 65.07%651,678 Page 77 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) The funded status of the plan as of December 31, 2016, the most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL)$5,168,368 Actuarial value of plan assets - Unfunded Actuarial Accrued Liability (UAAL)$5,168,368 Funded ratio (actuarial value of plan assets/AAL)-% Covered payroll (active plan members)$10,870,787 UAAL as a percentage of covered payroll 47.54% 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, 2014 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 5% investment rate of return and an annual healthcare cost trend rate of 3% 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, 2016, was 30 years. Page 78 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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 2016 Payments Promenade Redevelopment Project 100% incremental property taxes, 20% incremental sales taxes Construction of an upscale retail and commercial shopping center $435,220 Page 79 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 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. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68 Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans 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. 82, Pension Issues - an Amendment of GASB Statements No. 67, No. 68, and No. 73 Statement No. 83, Certain Asset Retirement Obligations Statement No. 84, Fiduciary Activities Statement No. 85, Omnibus 2017 When they become effective, application of these standards may restate portions of these financial statements. Page 80 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 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual REVENUES Intergovernmental $13,670,390 $13,670,390 $14,274,831 $604,441 $13,604,940 Utility taxes 5,500,000 5,500,000 5,967,345 467,345 5,673,868 Licenses and permits 1,473,650 1,473,650 1,882,598 408,948 1,385,341 Charges for services 1,134,000 1,134,000 1,075,234 (58,766)1,058,929 Fines, forfeitures and penalties 193,500 193,500 159,799 (33,701)177,588 Investment income 110,000 110,000 136,186 26,186 91,621 Miscellaneous 387,090 387,090 421,967 34,877 583,800 Total Revenues 22,468,630 22,468,630 23,917,960 1,449,330 22,576,087 EXPENDITURES CURRENT General government 4,663,545 4,866,230 4,063,322 802,908 4,602,212 Public safety 16,207,670 16,201,385 15,146,642 1,054,743 14,475,532 Public works 691,805 691,805 642,689 49,116 622,962 Culture and recreation 1,010,995 1,010,995 957,642 53,353 977,641 Debt Service Principal 275,000 275,000 275,000 -265,000 Interest and fiscal charges 19,545 19,545 19,541 4 27,491 Total Expenditures 22,868,560 23,064,960 21,104,836 1,960,124 20,970,838 Excess (deficiency) of revenues over (under) expenditures (399,930)(596,330)2,813,124 3,409,454 1,605,249 OTHER FINANCING SOURCES (USES) Transfers in 662,600 662,600 -(662,600)- Transfers out (251,005)(251,005)-251,005 (459,098) Total Other Financing Sources (Uses)411,595 411,595 -(411,595)(459,098) Net Change in Fund Balance $11,665 $(184,735)2,813,124 $2,997,859 1,146,151 FUND BALANCE - Beginning of Year 17,259,420 16,113,269 FUND BALANCE - END OF YEAR $20,072,544 $17,259,420 See independent auditors' report and accompanying notes to required supplementary information. Page 81 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual REVENUES Intergovernmental $424,900 $424,900 $-$(424,900)$- Hotel and motel taxes 1,291,700 1,291,700 1,270,131 (21,569)1,194,811 Investment income 18,500 18,500 17,993 (507)18,688 Miscellaneous ----36,007 Total Revenues 1,735,100 1,735,100 1,288,124 (446,976)1,249,506 EXPENDITURES CURRENT General government 90,305 90,305 90,305 -42,500 Culture and recreation 1,859,920 1,859,920 751,823 1,108,097 658,049 Total Expenditures 1,950,225 1,950,225 842,128 1,108,097 700,549 Net Change in Fund Balance $(215,125)$(215,125)445,996 $661,121 548,957 FUND BALANCE - Beginning of Year 3,847,510 3,298,553 FUND BALANCE - END OF YEAR $4,293,506 $3,847,510 See independent auditors' report and accompanying notes to required supplementary information. Page 82 See independent auditors' report and accompanying notes to required supplementary information. Page 83 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Two Most Recent Fiscal Years 2015 2016 Total pension liability Service cost 613,861$ 581,062$ Interest 2,465,082 2,615,047 Differences between expected and actual experience (770,401) (398,570) Changes of assumptions 1,163,670 89,849 Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) Net change in total pension liability 2,119,046 1,421,115 Total pension liability - beginning 33,237,409 35,356,455 Total pension liability - ending (a)35,356,455$ 36,777,570$ Plan fiduciary net position Employer contributions 749,983$ 715,089$ Employee contributions 238,409 238,021 Net investment income 1,874,762 159,375 Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) Other (net transfer)(294,611) 63,416 Net change in plan fiduciary net position 1,215,377 (290,372) Plan fiduciary net position - beginning 30,916,185 32,131,562 Plan fiduciary net position - ending (b)32,131,562$ 31,841,190$ Employer's net pension liability - ending (a) - (b)3,224,893$ 4,936,380$ Plan fiduciary net position as a percentage of the total pension liability 90.88%86.58% Covered-employee payroll 5,168,916$ 5,230,241$ Employer's net pension liability as a percentage of covered-employee payroll 62.39%94.38% 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 84 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Two Most Recent Fiscal Years 2015 2016 Actuarially determined contribution 749,982$ 715,497$ Contributions in relation to the actuarially determined contribution (749,983) (715,089) Contribution deficiency (excess)(1)$ 408$ Covered-employee payroll 5,289,017$ 5,230,241$ Contributions as a percentage of covered- employee payroll 14.18%13.67% 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 3.00% Salary increases Investment rate of return 7.50% Retirement Age Mortality RP-2000 CHBCA Other information: There were no benefit changes during the year. 4.40% to 16.00% 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 each year, which are 6 months prior to the beginning of the fiscal year in which contributions are reported. 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 28 years 5-Year Smoothed Market See independent auditors' report and accompanying notes to required supplementary information. Page 85 2014 2015 2016 Total pension liability Service cost 826,067$ 816,276$ 800,389$ Interest 3,141,175 3,338,238 3,563,145 Differences between expected and actual experience 1,279,682 (48,037) (856,825) Changes of assumptions - 1,597,133 96,439 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) Net change in total pension liability 2,958,231 3,356,924 1,238,309 Total pension liability - beginning 46,854,212 49,812,440 53,169,364 Total pension liability - ending (a)49,812,443$ 53,169,364$ 54,407,673$ Plan fiduciary net position Employer contributions 1,259,824$ 1,336,683$ 1,527,927$ Employee contributions 358,339 358,499 383,238 Net investment income 1,115,158 (429,967) 2,176,018 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) Administration (47,609) (38,647) (39,522) Net change in plan fiduciary net position 397,019 (1,120,118) 1,682,822 Plan fiduciary net position - beginning 32,574,327 32,971,346 31,851,228 Plan fiduciary net position - ending (b)32,971,346$ 31,851,228$ 33,534,050$ Village's net pension liability - ending (a) - (b)16,841,097$ 21,318,136$ 20,873,623$ Plan fiduciary net position as a percentage of the total pension liability 66.19%59.91%61.63% Covered-employee payroll 3,631,184$ 3,735,548$ 3,829,224$ Village's net pension liability as a percentage of covered- employee payroll 463.79%570.68%545.11% 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 POLICE PENSION FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Last Three Fiscal Years 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. See independent auditors' report and accompanying notes to required supplementary information. Page 86 2007 2008 2009 2010 Actuarially determined contribution 564,283$ 617,619$ 958,641$ 944,808$ Contributions in relation to the actuarially determined contribution 564,283 617,618 958,641 944,808 Contribution deficiency (excess)-$ 1$ -$ -$ Covered-employee payroll N/A N/A 3,288,064$ 3,433,002$ Contributions as a percentage of covered- employee payroll N/A N/A 29.16%27.52% 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-2000 BCA Mortality Table Entry-age normal Level percentage of payroll, closed 24 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 87 2011 2012 2013 2014 2015 2016 885,339$ 969,024$ 1,205,519$ 1,485,673$ 1,550,233$ 1,708,330$ 674,170 977,367 1,171,537 1,259,824 1,259,824 1,527,927 211,169$ (8,343)$ 33,982$ 225,849$ 290,409$ 180,403$ 3,288,064$ 3,310,998$ 3,646,309$ 3,598,016$ 3,631,184$ 3,735,548$ 20.50%29.52%32.13%35.01%34.69%40.90% See independent auditors' report and accompanying notes to required supplementary information. Page 88 2014 2015 2016 Annual money-weighted rate of return, net of investment expense 5.54%-1.32%6.89% 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 POLICE PENSION FUND SCHEDULE OF INVESTMENT RETURNS Last Three Fiscal Years See independent auditors' report and accompanying notes to required supplementary information. Page 89 2014 2015 2016 Total pension liability Service cost 746,748$ 746,748$ 756,771$ Interest 2,926,848 3,040,301 3,229,650 Differences between expected and actual experience 507,637 163,758 (569,891) Changes of assumptions - 1,474,675 90,432 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) Net change in total pension liability 1,795,742 2,810,076 861,692 Total pension liability - beginning 43,806,712 45,602,454 48,412,530 Total pension liability - ending (a)45,602,454$ 48,412,530$ 49,274,222$ Plan fiduciary net position Employer contributions 1,570,742$ 1,414,530$ 1,801,476$ Employee contributions 267,458 269,349 273,775 Net investment income 1,178,816 (256,566) 1,794,320 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) Administration (75,386) (46,351) (40,567) Net change in plan fiduciary net position 556,139 (1,234,444) 1,183,734 Plan fiduciary net position - beginning 24,489,991 25,046,130 23,811,686 Plan fiduciary net position - ending (b)25,046,130$ 23,811,686$ 24,995,420$ Village's net pension liability - ending (a) - (b)20,556,324$ 24,600,844$ 24,278,802$ Plan fiduciary net position as a percentage of the total pension liability 54.92%49.18%50.73% Covered-employee payroll 2,818,219$ 2,812,001$ 2,918,844$ Village's net pension liability as a percentage of covered- employee payroll 729.41%874.85%831.80% Notes to Schedule: 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. VILLAGE OF OAK BROOK FIREFIGHTERS' PENSION FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Last Three Fiscal Years See independent auditors' report and accompanying notes to required supplementary information. Page 90 2007 2008 2009 2010 Actuarially determined contribution 564,945$ 671,683$ 839,550$ 933,925$ Contributions in relation to the actuarially determined contribution 564,945 671,683 839,550 933,925 Contribution deficiency (excess)-$ -$ -$ -$ Covered-employee payroll N/A N/A 2,668,624$ 2,573,691$ Contributions as a percentage of covered- employee payroll N/A N/A 31.46%36.29% 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 50-62 Mortality rates were based on the RP-2000 BCA Mortality Table Level percentage of payroll, closed 24 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 91 2011 2012 2013 2014 2015 2016 1,082,677$ 1,065,173$ 1,144,966$ 1,698,405$ 1,826,637$ 2,015,441$ 995,110 1,001,528 1,057,081 1,570,742 1,414,530 1,801,476 87,567$ 63,645$ 87,885$ 127,663$ 412,107$ 213,965$ 2,668,624$ 2,687,097$ 2,762,080$ 2,674,017$ 2,818,219$ 2,812,001$ 37.29%37.27%38.27%58.74%50.19%64.06% See independent auditors' report and accompanying notes to required supplementary information. Page 92 2014 2015 2016 Annual money-weighted rate of return, net of investment expense 5.10%-1.05%7.62% 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 Three 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, 2016 Year Ended Annual Required Contribution Percentage Contributed 12/31/16 $468,424 64% 12/31/15 445,025 61% 12/31/14 423,407 64% 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) 12/31/16 $-$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% 12/31/13 -4,873,373 4,873,373 0%9,089,711 54% See independent auditors' report and accompanying notes to required supplementary information. Page 93 VILLAGE OF OAK BROOK NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2016 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 94 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 - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 with Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual INTERGOVERNMENTAL Municipal sales tax $12,625,000 $12,625,000 $12,969,830 $344,830 $12,248,035 Illinois state income and use tax 713,000 713,000 965,261 252,261 1,013,856 Corporate personal property replacement taxes 295,000 295,000 279,782 (15,218)309,403 York Township road and bridge tax 15,000 15,000 13,678 (1,322)14,236 Grants 22,390 22,390 46,280 23,890 19,410 Total Intergovernmental 13,670,390 13,670,390 14,274,831 604,441 13,604,940 Utility taxes 5,500,000 5,500,000 5,967,345 467,345 5,673,868 Licenses and permits 1,473,650 1,473,650 1,882,598 408,948 1,385,341 Charges for services 1,134,000 1,134,000 1,075,234 (58,766)1,058,929 Fines, forfeitures and penalties 193,500 193,500 159,799 (33,701)177,588 Investment income 110,000 110,000 136,186 26,186 91,621 MISCELLANEOUS Franchise fees 195,000 195,000 222,899 27,899 203,105 Other 192,090 192,090 199,068 6,978 380,695 Total Miscellaneous 387,090 387,090 421,967 34,877 583,800 TOTAL REVENUES $22,468,630 $22,468,630 $23,917,960 $1,449,330 $22,576,087 Page 95 Page 96 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual GENERAL GOVERNMENT Legislative and general management Board of Trustees Personnel 78,730$ 78,730$ 75,074$ 3,656$ 69,800$ Materials and supplies 3,800 3,800 472 3,328 215 Operation and contractual 65,000 65,000 49,136 15,864 77,025 Total board of trustees 147,530 147,530 124,682 22,848 147,040 Village clerk Personnel 158,025 155,365 149,678 5,687 129,847 Materials and supplies 2,835 2,835 1,925 910 1,896 Operation and contractual 12,900 15,560 11,310 4,250 4,278 Total Village clerk 173,760 173,760 162,913 10,847 136,021 Legal Personnel 30,010 30,010 30,068 (58) 29,248 Materials and supplies 150 150 68 82 281 Operation and contractual 468,900 468,900 230,897 238,003 467,825 Total legal 499,060 499,060 261,033 238,027 497,354 General management Personnel 326,885 326,885 308,567 18,318 325,267 Materials and supplies 57,300 57,300 44,873 12,427 62,256 Operation and contractual 32,075 32,075 21,505 10,570 33,939 Total general management 416,260 416,260 374,945 41,315 421,462 Human resources Personnel 155,480 155,480 140,154 15,326 165,214 Materials and supplies 2,450 2,450 91 2,359 1,863 Operation and contractual 65,500 65,500 46,171 19,329 50,608 Total human resources 223,430 223,430 186,416 37,014 217,685 Risk management Personnel 21,740 21,740 17,074 4,666 19,511 Materials and supplies 1,000 1,000 - 1,000 - Operation and contractual 471,500 471,500 407,794 63,706 452,124 Total risk management 494,240 494,240 424,868 69,372 471,635 Emergency management Personnel 1,400 1,400 111 1,289 279 Materials and supplies 1,200 7,485 9,104 (1,619) 8,128 Operation and contractual 13,690 13,690 11,471 2,219 11,509 Total emergency management 16,290 22,575 20,686 1,889 19,916 Communications and marketing Materials and supplies - - - - 367 Total communications and marketing - - - - 367 2016 Budgeted Amounts Page 97 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts GENERAL GOVERNMENT (continued) Legislative and general management (continued) Purchasing Personnel -$ -$ -$ -$ 89,306$ Materials and supplies - - - - 15,575 Operation and contractual - - - - 5,031 Total purchasing - - - - 109,912 Information systems Personnel 353,985 353,985 328,255 25,730 311,518 Materials and supplies 27,600 27,600 25,352 2,248 27,106 Operation and contractual 357,605 351,235 277,222 74,013 328,188 Capital 100,000 106,370 106,369 1 237,255 Total information systems 839,190 839,190 737,198 101,992 904,067 Customer service Personnel 54,420 54,420 50,361 4,059 - Total customer service 54,420 54,420 50,361 4,059 - Total legislative and general management 2,864,180 2,870,465 2,343,102 527,363 2,925,459 Community development management Administration Personnel 315,200 302,920 285,927 16,993 303,358 Materials and supplies 3,210 3,210 1,201 2,009 745 Operation and contractual 71,905 71,905 56,426 15,479 8,508 Total administration 390,315 378,035 343,554 34,481 312,611 Code enforcement Personnel 545,150 557,430 555,158 2,272 594,805 Materials and supplies 7,700 7,700 5,986 1,714 4,006 Operation and contractual 45,050 45,050 38,920 6,130 49,104 Total code enforcement 597,900 610,180 600,064 10,116 647,915 Total community development management 988,215 988,215 943,618 44,597 960,526 Financial services Financial services management Personnel 148,720 148,720 103,665 45,055 145,677 Materials and supplies - - 23 (23) - Operation and contractual 59,825 59,825 51,357 8,468 71,617 Total financial services management 208,545 208,545 155,045 53,500 217,294 Accounting and reporting Personnel 415,825 415,825 410,733 5,092 335,748 Materials and supplies 4,015 4,015 3,933 82 3,285 Operation and contractual 28,360 28,360 23,218 5,142 35,138 Total accounting and reporting 448,200 448,200 437,884 10,316 374,171 PSEBA benefits Personnel 40,000 40,000 39,827 173 38,553 Total PSEBA benefits 40,000 40,000 39,827 173 38,553 Page 98 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts GENERAL GOVERNMENT (continued) Financial services (continued) Customer service Personnel -$ -$ -$ -$ 46,918$ Materials and supplies - - - - 1,142 Total customer service - - - - 48,060 Purchasing Personnel 94,460 94,460 92,674 1,786 - Materials and supplies 21,350 21,350 12,159 9,191 - Operation and contractual 6,000 6,000 1,827 4,173 - Total purchasing 121,810 121,810 106,660 15,150 - Total financial services 818,555 818,555 739,416 79,139 678,078 Municipal building improvement Capital 490,000 686,400 534,591 151,809 459,499 Total municipal building improvement 490,000 686,400 534,591 151,809 459,499 Expenditure reimbursements paid to other funds 130,620 130,620 130,620 - 124,000 Subtotal general government 5,291,570 5,494,255 4,691,347 802,908 5,147,562 Less reimbursements from other funds (628,025) (628,025) (628,025) - (545,350) Total general government 4,663,545 4,866,230 4,063,322 802,908 4,602,212 PUBLIC SAFETY Police department Police services management Personnel 550,110 550,110 525,922 24,188 502,398 Materials and supplies 3,500 3,500 2,907 593 3,846 Operation and contractual 56,215 56,215 52,683 3,532 55,760 Total police services management 609,825 609,825 581,512 28,313 562,004 Police field services Personnel 4,888,880 4,850,505 4,511,962 338,543 4,359,418 Materials and supplies 8,050 8,050 7,779 271 8,116 Operation and contractual 350,685 350,685 346,551 4,134 436,962 Capital 15,240 15,240 13,685 1,555 13,745 Total police field services 5,262,855 5,224,480 4,879,977 344,503 4,818,241 Police auxiliary services Personnel 48,980 87,355 87,413 (58) 41,179 Operation and contractual 1,875 1,875 1,632 243 1,632 Total police auxiliary services 50,855 89,230 89,045 185 42,811 Page 99 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts PUBLIC SAFETY (continued) Police department (continued) Support services general Personnel 704,680$ 704,680$ 679,334$ 25,346$ 609,684$ Materials and supplies 67,310 61,025 53,555 7,470 59,974 Operation and contractual 2,850 2,850 3,244 (394) 1,429 Total support services general 774,840 768,555 736,133 32,422 671,087 Support services detectives Personnel 1,037,505 1,037,505 953,737 83,768 916,747 Materials and supplies 2,450 2,450 2,922 (472) 3,284 Operation and contractual 49,580 49,580 49,200 380 45,357 Total support services detectives 1,089,535 1,089,535 1,005,859 83,676 965,388 Police support services records Personnel 229,475 229,475 221,936 7,539 208,834 Materials and supplies 25,700 25,700 25,581 119 25,541 Operation and contractual 464,390 464,390 433,590 30,800 441,527 Total support services records 719,565 719,565 681,107 38,458 675,902 Total police department 8,507,475 8,501,190 7,973,633 527,557 7,735,433 Fire department Fire, rescue, and EMS operations Personnel 5,699,730 5,699,730 5,400,448 299,282 4,952,843 Materials and supplies 50,645 50,645 43,842 6,803 43,637 Operation and contractual 314,800 314,800 302,872 11,928 438,174 Capital 36,200 36,200 36,179 21 40,696 Total fire, rescue, and EMS operations 6,101,375 6,101,375 5,783,341 318,034 5,475,350 Fire services management Personnel 339,760 354,930 350,451 4,479 329,552 Materials and supplies 8,800 8,800 5,587 3,213 6,089 Operation and contractual 203,620 188,450 183,015 5,435 183,320 Total fire services management 552,180 552,180 539,053 13,127 518,961 Special teams operations Materials and supplies 8,500 8,500 5,988 2,512 6,311 Operation and contractual 7,450 7,450 7,381 69 7,607 Total special teams operations 15,950 15,950 13,369 2,581 13,918 Rescue and fire training Personnel 50,665 50,665 28,469 22,196 40,169 Materials and supplies 925 925 10 915 145 Operation and contractual 1,000 1,000 - 1,000 - Total rescue and fire training 52,590 52,590 28,479 24,111 40,314 Page 100 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts PUBLIC SAFETY (continued) Fire department (continued) Emergency medical services Personnel 33,365$ 33,365$ 28,858$ 4,507$ 25,793$ Materials and supplies 19,700 19,700 17,729 1,971 19,512 Operation and contractual 615,520 615,520 600,842 14,678 606,613 Capital 53,200 53,200 51,167 2,033 39,638 Total emergency medical services 721,785 721,785 698,596 23,189 691,556 Fire prevention and public safety Personnel 240,750 240,750 101,704 139,046 - Materials and supplies 9,865 9,865 7,242 2,623 - Operation and contractual 5,700 5,700 1,225 4,475 - Total fire prevention and public safety 256,315 256,315 110,171 146,144 - Total fire department 7,700,195 7,700,195 7,173,009 527,186 6,740,099 Total public safety 16,207,670 16,201,385 15,146,642 1,054,743 14,475,532 PUBLIC WORKS Mosquito control Operation and contractual 69,830 69,830 66,992 2,838 70,229 Total mosquito control 69,830 69,830 66,992 2,838 70,229 Buildings and grounds Personnel 112,555 112,555 111,716 839 107,597 Materials and supplies 43,805 38,930 28,145 10,785 39,088 Operation and contractual 259,890 241,230 227,911 13,319 230,750 Capital - 23,535 23,535 - - Total buildings and grounds 416,250 416,250 391,307 24,943 377,435 Forestry Personnel 15,710 15,710 4,533 11,177 11,475 Materials and supplies 4,365 4,365 2,616 1,749 216 Operation and contractual 185,650 185,650 177,241 8,409 163,607 Total forestry 205,725 205,725 184,390 21,335 175,298 Total public works 691,805 691,805 642,689 49,116 622,962 CULTURE AND RECREATION Library general operations Personnel 402,490 402,490 384,814 17,676 374,501 Materials and supplies 15,950 15,950 10,934 5,016 11,377 Operation and contractual 79,250 79,250 69,334 9,916 71,979 Total library general operations 497,690 497,690 465,082 32,608 457,857 Library technical services Personnel 98,190 98,190 95,717 2,473 123,821 Materials and supplies 3,290 3,290 3,140 150 3,290 Operation and contractual 6,675 6,675 4,311 2,364 7,275 Total library technical services 108,155 108,155 103,168 4,987 134,386 Page 101 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts CULTURE AND RECREATION (continued) Library reference and adult services Personnel 163,590$ 163,590$ 153,760$ 9,830$ 153,777$ Materials and supplies 102,200 102,200 101,789 411 101,221 Operation and contractual 2,500 2,500 2,493 7 2,501 Total library reference and adult services 268,290 268,290 258,042 10,248 257,499 Library youth services Personnel 105,110 105,110 99,917 5,193 96,431 Materials and supplies 28,750 28,750 28,434 316 29,474 Operation and contractual 3,000 3,000 2,999 1 1,994 Total library youth services 136,860 136,860 131,350 5,510 127,899 Total culture and recreation 1,010,995 1,010,995 957,642 53,353 977,641 DEBT SERVICE Principal 275,000 275,000 275,000 - 265,000 Interest and fiscal charges 19,545 19,545 19,541 4 27,491 Total debt service 294,545 294,545 294,541 4 292,491 Total expenditures 22,868,560$ 23,064,960$ 21,104,836$ 1,960,124$ 20,970,838$ 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, 2016 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds ASSETS Cash and investments $906,936 $203,183 $1,110,119 Receivables Allotments 18,701 -18,701 Accrued interest 1,748 -1,748 TOTAL ASSETS $927,385 $203,183 $1,130,568 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Fund Balances Restricted for highways and streets 927,385 -927,385 Restricted for fire department -203,183 203,183 Total Fund Balances 927,385 203,183 1,130,568 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $927,385 $203,183 $1,130,568 Page 102 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2016 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds REVENUES Intergovernmental $200,706 $53,258 $253,964 Investment income 7,444 1,655 9,099 Total Revenues 208,150 54,913 263,063 EXPENDITURES Current Public safety -43,421 43,421 Debt Service Total Expenditures -43,421 43,421 Excess (deficiency) of revenues over expenditures 208,150 11,492 219,642 OTHER FINANCING USES Transfers out (516,221)-(516,221) Total Other Financing Uses (516,221)-(516,221) Net Change in Fund Balances (308,071)11,492 (296,579) FUND BALANCES - Beginning of Year 1,235,456 191,691 1,427,147 FUND BALANCES - END OF YEAR $927,385 $203,183 $1,130,568 Page 103 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual REVENUES Intergovernmental $-$-$200,706 $200,706 $192,719 Investment income 2,500 2,500 7,444 4,944 4,088 Total Revenues 2,500 2,500 208,150 205,650 196,807 EXPENDITURES Total Expenditures ----- Excess (deficiency) of revenues over (under) expenditures 2,500 2,500 208,150 205,650 196,807 OTHER FINANCING SOURCES (USES) Transfers out (950,000)(950,000)(516,221)433,779 - Total Other Financing Sources (Uses)(950,000)(950,000)(516,221)433,779 - Net Change in Fund Balance $(947,500)$(947,500)(308,071)$639,429 196,807 FUND BALANCE - Beginning of Year 1,235,456 1,038,649 FUND BALANCE - END OF YEAR $927,385 $1,235,456 Page 104 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual REVENUES Intergovernmental - grants $-$-$25,804 $25,804 $- Non-home rule sales tax 5,835,000 5,835,000 5,991,262 156,262 5,637,241 Investment income 25,000 25,000 39,800 14,800 22,985 Miscellaneous 15,000 15,000 -(15,000)5,697 Total Revenues 5,875,000 5,875,000 6,056,866 181,866 5,665,923 EXPENDITURES GENERAL GOVERNMENT Geographic information systems Personnel 18,865 18,865 18,169 696 - Materials and supplies 1,700 1,700 1,083 617 780 Operation and contractual 161,430 161,430 158,171 3,259 141,093 Capital 9,500 9,500 8,590 910 - Total geographic information systems 191,495 191,495 186,013 5,482 141,873 Total General Government 191,495 191,495 186,013 5,482 141,873 PUBLIC WORKS Management Personnel 425,740 425,740 354,604 71,136 311,975 Materials and supplies 3,930 3,930 2,031 1,899 2,302 Operation and contractual 220,285 220,285 159,021 61,264 172,381 Total management $649,955 $649,955 $515,656 $134,299 $486,658 Page 105 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual Streets - general salaries Personnel $660,465 $660,465 $650,415 $10,050 $608,534 Materials and supplies 3,780 3,780 3,138 642 4,065 Operation and contractual 3,585 3,585 2,667 918 2,623 Total streets - general salaries 667,830 667,830 656,220 11,610 615,222 Streets and traffic maintenance Materials and supplies 194,865 163,800 24,341 139,459 21,559 Operation and contractual 401,155 432,220 421,710 10,510 329,853 Capital 10,000 10,000 -10,000 - Total streets and traffic maintenance 606,020 606,020 446,051 159,969 351,412 Snow removal Personnel 98,790 98,790 54,391 44,399 66,482 Materials and supplies 132,820 132,820 75,210 57,610 157,268 Operation and contractual 81,240 81,240 73,621 7,619 73,272 Capital 17,500 17,500 -17,500 - Total snow removal 330,350 330,350 203,222 127,128 297,022 Drainage maintenance Materials and supplies 20,000 20,000 5,141 14,859 6,965 Operation and contractual 93,355 93,355 82,437 10,918 88,487 Capital 20,000 20,000 -20,000 - Total drainage maintenance 133,355 133,355 87,578 45,777 95,452 Page 106 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual Safe pathway maintenance Materials and supplies $12,100 $12,100 $7,273 $4,827 $1,893 Operation and contractual 37,580 37,580 27,430 10,150 28,745 Capital 12,850 12,850 -12,850 - Total safe pathway maintenance 62,530 62,530 34,703 27,827 30,638 Engineering and capital projects engineering Personnel 437,865 502,805 493,885 8,920 401,467 Materials and supplies 1,875 1,875 1,052 823 574 Operation and contractual 116,585 51,645 39,856 11,789 49,329 Total engineering and capital projects engineering 556,325 556,325 534,793 21,532 451,370 Roadway improvements Operation and contractual 617,585 617,585 485,134 132,451 517,848 Intergovernmental agreements 3,923,820 3,923,820 2,474,646 1,449,174 3,618,369 Reimbursements from other funds (180,035)(180,035)(180,035)-(169,575) Expenditure reimbursement paid to other funds 155,000 155,000 155,000 -144,000 Total roadway improvements 4,516,370 4,516,370 2,934,745 1,581,625 4,110,642 Total Public Works 7,522,735 7,522,735 5,412,968 2,109,767 6,438,416 Total Expenditures 7,714,230 7,714,230 5,598,981 2,115,249 6,580,289 Page 107 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual Excess (deficiency) of revenues over (under) expenditures $(1,839,230)$(1,839,230)457,885 $2,297,115 (914,366) OTHER FINANCING SOURCES (USES) Transfers in 950,000 950,000 516,221 (433,779)- Total Other Financing Sources (Uses)950,000 950,000 516,221 (433,779)- Net Change in Fund Balance $(889,230)$(889,230)974,106 $1,863,336 (914,366) FUND BALANCE - Beginning of Year 5,791,896 6,706,262 FUND BALANCE - END OF YEAR $6,766,002 $5,791,896 Page 108 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - PROMENADE TIF FUND - MAJOR CAPITAL PROJECT FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual REVENUES TAXES Municipal sales tax $97,000 $97,000 $103,007 $6,007 $98,822 Property taxes 330,000 330,000 354,829 24,829 325,654 Investment income 15 15 389 374 40 Total Revenues 427,015 427,015 458,225 31,210 424,516 EXPENDITURES Current General government 3,800 3,940 3,938 2 3,975 Debt service Principal 140,000 145,000 145,000 -119,913 Interest and fiscal charges 290,000 290,220 290,220 -298,974 Total Expenditures 433,800 439,160 439,158 2 422,862 Net Change in Fund Balance $(6,785)$(12,145)19,067 $31,212 1,654 FUND BALANCE - Beginning of Year 230,211 228,557 FUND BALANCE - END OF YEAR $249,278 $230,211 Page 109 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual OPERATING REVENUES Charges for services Water sales $8,180,000 $8,180,000 $8,543,371 $363,371 $7,451,956 Unmetered sales 25,000 25,000 41,794 16,794 40,295 Water tap on charges 30,000 30,000 69,573 39,573 47,840 Meter fees and special services 57,000 57,000 63,634 6,634 75,329 Miscellaneous 66,500 66,500 93,756 27,256 67,825 Total Operating Revenues 8,358,500 8,358,500 8,812,128 453,628 7,683,245 OPERATING EXPENSES Operation of facilities 7,860,985 7,860,985 7,369,401 (491,584)7,548,159 Depreciation and amortization --590,178 590,178 549,293 Total Operating Expenses 7,860,985 7,860,985 7,959,579 98,594 8,097,452 Operating Income (loss)497,515 497,515 852,549 355,034 (414,207) NON-OPERATING REVENUES (EXPENSES) Investment income 10,000 10,000 12,631 2,631 13,046 Gain (loss) on disposal of capital assets ----(6,556) Total Non-Operating Revenues (Expenses)10,000 10,000 12,631 2,631 6,490 Change in net position $507,515 $507,515 865,180 $357,665 (407,717) NET POSITION - Beginning of Year 20,561,853 20,969,570 NET POSITION - END OF YEAR $21,427,033 $20,561,853 Page 110 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - WATERW ORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance W ith 2015 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operation of facilities Public works - water operations Personnel 812,125$ 846,125$ 845,108$ 1,017$ 768,746$ Materials and supplies 74,545 155,325 150,572 4,753 219,761 Operation and contractual 6,365,195 6,250,415 5,888,340 362,075 6,081,444 Reimbursements for general fund services 423,720 423,720 423,720 - 399,350 Total public works - water operations 7,675,585 7,675,585 7,307,740 367,845 7,469,301 Capital improvements Capital outlay 185,400 185,400 - 185,400 1,416,468 Total capital improvements 185,400 185,400 - 185,400 1,416,468 Total operating expenses excluding depreciation and pension expense - Budgetary basis 7,860,985$ 7,860,985$ 7,307,740 553,245$ 8,885,769 Adjustments to GAAP Basis Capital expenditures - (1,416,468) Pension expense - IMRF 51,492 40,288 OPEB expense 10,169 38,570 Depreciation and amortization 590,178 549,293 Total adjustments to GAAP basis 651,839 (788,317) Total operating expenses 7,959,579$ 8,097,452$ 2016 Budgeted Amounts Page 111 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance W ith 2015 Original Final Actual Final Budget Actual Revenues Charges for services Golf 1,881,220$ 1,881,220$ 2,036,729$ 155,509$ 1,808,993$ Swimming and tennis 283,390 283,390 293,431 10,041 273,565 Special events 180,000 180,000 185,196 5,196 334,070 Rentals and commissions 425,000 425,000 449,752 24,752 420,632 Food and beverage 360,050 360,050 418,749 58,699 350,775 Total operating revenues 3,129,660 3,129,660 3,383,857 254,197 3,188,035 Operating expenses including depreciation Golf club 1,801,275 1,789,640 1,762,802 26,838 1,855,510 Swimming and tennis 525,295 480,190 553,938 (73,748) 560,009 Special events 225,000 219,780 219,533 247 459,919 Rentals and commissions 389,695 440,810 430,047 10,763 437,293 Food and beverage 403,480 414,325 380,874 33,451 382,783 Total operating expenses 3,344,745 3,344,745 3,347,194 (2,449) 3,695,514 Operating income (loss)(215,085) (215,085) 36,663 256,646 (507,479) Non-operating revenues (expenses) Investment income 1,500 1,500 3,374 (1,874) 3,088 Gain (loss) on disposal of capital assets - - (2,512) 2,512 (7,542) Interest and fiscal charges - - - - (919) Total non-operating revenues (expenses)1,500 1,500 862 638 (5,373) Net income (loss) before transfers (213,585) (213,585) 37,525 257,284 (512,852) Transfers Transfers in 251,005 251,005 - (251,005) 459,098 Total Other Financing Sources (Uses)251,005 251,005 - (251,005) 459,098 Change in net position 37,420$ 37,420$ 37,525 6,279$ (53,754) NET POSITION - Beginning of Year 12,304,654 12,358,408 NET POSITION - END OF YEAR 12,342,179$ 12,304,654$ Budgeted Amount For the Year Ended December 31, 2016 SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - SPORTS CORE FUND - VILLAGE OF OAK BROOK 2016 Page 112 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual Charges for Services Golf Fees 1,408,320$ 1,408,320$ 1,529,827$ 121,507$ 1,320,132$ Golf surcharge 110,000 110,000 117,970 7,970 101,914 Memberships 167,150 167,150 179,987 12,837 166,175 Merchandise sales 195,650 195,650 208,845 13,195 220,672 Miscellaneous 100 100 100 - 100 Total golf 1,881,220 1,881,220 2,036,729 155,509 1,808,993 Swimming and tennis Fees 74,870 74,870 62,313 (12,557) 70,676 Memberships 207,920 207,920 224,531 16,611 200,197 Merchandise sales 200 200 - (200) 10 Miscellaneous 400 400 6,587 6,187 2,682 Total swimming and tennis 283,390 283,390 293,431 10,041 273,565 Special events Fees - - - - 24,111 Merchandise sales - - - - 19,292 Promotions - - - - 80,100 Independence Day/Taste of Oak Brook 180,000 180,000 185,196 5,196 185,007 Special groups - - - - 8,790 Miscellaneous - - - - 16,770 Total special events 180,000 180,000 185,196 5,196 334,070 Rentals and commissions Open field rental 265,000 265,000 281,081 16,081 278,708 Other rental income 160,000 160,000 168,671 8,671 141,924 Total rentals and commissions 425,000 425,000 449,752 24,752 420,632 Food and beverage Food sales 162,550 162,550 174,964 12,414 150,850 Beverage sales 197,500 197,500 243,785 46,285 199,925 Total food and beverage 360,050 360,050 418,749 58,699 350,775 Total Operating Revenues 3,129,660$ 3,129,660$ 3,383,857$ 254,197$ 3,188,035$ SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 30, 2016 VILLAGE OF OAK BROOK 2016 Budgeted Amounts Page 113 Page 114 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operations - golf club Golf club general operations Personnel 290,605$ 509,905$ 507,337$ 2,568$ 442,109$ Materials and supplies 177,550 186,545 186,441 104 239,002 Operation and contractual 269,395 167,890 144,101 23,789 174,293 Capital 15,000 7,915 7,915 - 8,135 Total golf club general operations 752,550 872,255 845,794 26,461 863,539 Golf club range operations Personnel 62,785 69,490 67,778 1,712 62,243 Materials and supplies 17,000 10,295 9,115 1,180 10,758 Operation and contractual 14,700 14,700 13,200 1,500 14,953 Capital 7,500 7,500 6,165 1,335 - Total golf club range operations 101,985 101,985 96,258 5,727 87,954 Golf cart operations Personnel 23,845 48,095 48,092 3 24,008 Materials and supplies 1,400 53,415 53,152 263 1,229 Operation and contractual 7,000 7,000 7,262 (262) 6,545 Capital 50,000 - - - - Total golf cart operations 82,245 108,510 108,506 4 31,782 Golf course maintenance Personnel 699,495 541,890 450,276 91,614 576,298 Materials and supplies 228,850 228,850 196,945 31,905 193,533 Operation and contractual 40,350 40,350 37,378 2,972 45,729 Capital 102,000 102,000 56,287 45,713 156,958 Total golf course maintenance 1,070,695 913,090 740,886 172,204 972,518 Less reimbursement from other funds (206,200) (206,200) (206,200) - (206,200) Total operations - golf club 1,801,275 1,789,640 1,585,244 204,396 1,749,593 Operations - swimming and tennis General operations Personnel 85,675 135,075 134,531 544 68,689 Materials and supplies 29,250 22,175 19,129 3,046 41,269 Operation and contractual 213,735 138,185 113,796 24,389 134,231 Subtotal general operations 328,660 295,435 267,456 27,979 244,189 Less reimbursement from other funds (32,000) (32,000) (32,000) - (32,000) Less overhead allocation (328,660) (328,660) (276,915) (51,745) (246,974) Total general operations (32,000) (65,225) (41,459) (23,766) (34,785) 2016 Budgeted Amounts Page 115 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts Operating expenses excluding depreciation and pension expense (continued) Swimming operations Personnel 35,040$ 35,040$ 33,866$ 1,174$ 36,817$ Materials and supplies 12,500 9,765 9,837 (72) 9,423 Operation and contractual 181,805 191,385 192,228 (843) 198,553 Capital 25,500 42,855 24,200 18,655 34,403 Overhead allocation 141,325 141,325 119,079 22,246 102,989 Total swimming operations 396,170 420,370 379,210 41,160 382,185 Tennis operations - outdoor Personnel 52,395 52,395 47,894 4,501 56,788 Materials and supplies 7,800 7,800 1,691 6,109 10,921 Operation and contractual 35,200 35,200 33,100 2,100 34,352 Capital - - - - 15,000 Overhead allocation 65,730 65,730 55,381 10,349 47,901 Total tennis operations - outdoor 161,125 161,125 138,066 23,059 164,962 Total operations - swimming and tennis 525,295 516,270 475,817 40,453 512,362 Special events Personnel - - - - 2,649 Materials and supplies - - - - 49,188 Operation and contractual 225,000 219,780 219,533 247 400,617 Overhead allocation - - - - 7,465 Total special events 225,000 219,780 219,533 247 459,919 Rentals and commissions Personnel 118,620 102,230 103,131 (901) 104,134 Materials and supplies 9,050 2,755 1,580 1,175 16,681 Operation and contractual 196,150 233,870 233,495 375 251,297 Capital 10,000 10,000 - 10,000 40,000 Overhead allocation 55,875 91,955 85,840 6,115 57,210 Total rentals and commissions 389,695 440,810 424,046 16,764 469,322 Food and beverage Poolside grill Personnel 17,415 17,415 19,272 (1,857) 20,649 Materials and supplies 23,380 28,600 27,857 743 24,134 Operation and contractual 4,800 4,800 3,685 1,115 4,254 Overhead allocation 65,730 29,650 16,615 13,035 31,409 Total poolside grill 111,325 80,465 67,429 13,036 80,446 Golf clubhouse Personnel 108,930 112,465 113,316 (851) 117,908 Materials and supplies 170,450 172,540 171,439 1,101 163,423 Operation and contractual 12,775 12,775 13,025 (250) 9,833 Total golf clubhouse 292,155 297,780 297,780 - 291,164 Total food and beverage 403,480 378,245 365,209 13,036 371,610 Page 116 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Variance With 2015 Original Final Actual Final Budget Actual 2016 Budgeted Amounts Total operating expenses - budgetary basis 3,344,745$ 3,344,745$ 3,069,849 274,896$ 3,562,806 Adjustments to GAAP basis Capital expenditures (94,567) (254,496) Depreciation expense - golf 190,737 196,814 Depreciation expense - swimming and tennis 92,862 91,224 Depreciation expense - food and beverage 11,227 7,935 Pension expense - IMRF 68,519 72,705 OPEB expense 8,567 18,526 Total adjustments to GAAP basis 277,345 132,708 Total Operating Expenses 3,347,194$ 3,695,514$ 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, 2016 Self-Insurance Garage Capital Replacement Totals ASSETS Current Assets Cash and investments $589,849 $347,053 $1,502,658 $2,439,560 Receivables Accrued interest --4,308 4,308 Other 26,837 615 -27,452 Inventories -52,048 -52,048 Prepaid items 30,110 -744,579 774,689 Total Current Assets 646,796 399,716 2,251,545 3,298,057 Noncurrent Assets Capital assets Capital assets, net of accumulated depreciation -109,866 3,469,011 3,578,877 Total Noncurrent Assets -109,866 3,469,011 3,578,877 Total Assets 646,796 509,582 5,720,556 6,876,934 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions -53,437 -53,437 Total Deferred Outflows of Resources -53,437 -53,437 LIABILITIES Current Liabilities Accounts payable 237,104 70,859 -307,963 Accrued payroll 857 4,823 -5,680 Compensated absences payable -10,170 -10,170 Unearned revenues 39,624 --39,624 Claims payable 42,919 --42,919 Total Current Liabilities 320,504 85,852 -406,356 Noncurrent Liabilities Net pension liability - IMRF -81,953 -81,953 Other post employment benefits payable -7,556 -7,556 Total Noncurrent Liabilities -89,509 -89,509 Total Liabilities 320,504 175,361 -495,865 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions -8,824 -8,824 Total Deferred Inflows of Resources -8,824 -8,824 NET POSITION Investment in capital assets -109,866 3,469,011 3,578,877 Unrestricted 326,292 268,968 2,251,545 2,846,805 TOTAL NET POSITION $326,292 $378,834 $5,720,556 $6,425,682 Page 117 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 Self-Insurance Garage Capital Replacement Totals OPERATING REVENUES Charges for services $3,029,058 $700,395 $586,185 $4,315,638 Total Operating Revenues 3,029,058 700,395 586,185 4,315,638 OPERATING EXPENSES Claims and insurance 2,806,534 --2,806,534 Operation of facilities -499,878 -499,878 Miscellaneous --24,482 24,482 Depreciation and amortization -15,902 563,689 579,591 Total Operating Expenses 2,806,534 515,780 588,171 3,910,485 Operating Income (Loss)222,524 184,615 (1,986)405,153 NONOPERATING REVENUES (EXPENSES) Investment income 2,150 1,029 17,402 20,581 Gain (loss) on disposal of capital assets --79,706 79,706 Total Nonoperating Revenues (Expenses)2,150 1,029 97,108 100,287 Change in net position 224,674 185,644 95,122 505,440 NET POSITION - Beginning of Year 101,618 193,190 5,625,434 5,920,242 NET POSITION - END OF YEAR $326,292 $378,834 $5,720,556 $6,425,682 Page 118 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CASH FLOW S INTERNAL SERVICE FUNDS For the Year Ended December 31, 2016 Self-Insurance Garage Capital Replacement Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $1,074,995 $-$-$1,074,995 Receipts from internal service transactions 1,971,295 701,440 586,185 3,258,920 Paid to suppliers for goods and services (2,865,146)(409,100)(62,018)(3,336,264) Paid to employees for services -(108,053)-(108,053) Net Cash Flows From Operating Activities 181,144 184,287 524,167 889,598 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured --492,800 492,800 Investment income 2,150 1,029 20,921 24,100 Purchase of investments --(453,416)(453,416) Net Cash Flows From Investing Activities 2,150 1,029 60,305 63,484 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets --107,509 107,509 Acquisition and construction of capital assets -(35,510)(1,195,079)(1,230,589) Net Cash Flows From Capital and Related Financing Activities -(35,510)(1,087,570)(1,123,080) Net Change in Cash and Cash Equivalents 183,294 149,806 (503,098)(169,998) CASH AND CASH EQUIVALENTS - Beginning of Year 406,555 197,247 873,785 1,477,587 CASH AND CASH EQUIVALENTS - END OF YEAR $589,849 $347,053 $370,687 $1,307,589 Page 119 Self-Insurance Garage Capital Replacement Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$222,524 $184,615 $(1,986)$405,153 Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation -15,902 563,689 579,591 Changes in assets and liabilities Accounts receivable 62,883 1,045 -63,928 Prepaid items (19,420)--(19,420) Inventories -(17,586)-(17,586) Deferred outflows - pensions -11,876 -11,876 Accounts payable (5,599)54,365 (37,536)11,230 Claims payable (25,385)--(25,385) Accrued salaries (8,208)(26,090)-(34,298) Compensated absences payable -2,965 -2,965 Other postemployment benefits payable -(575)-(575) Net pension liability -(32,603)-(32,603) Deferred inflows - pensions -(9,627)-(9,627) Unearned revenues (45,651)--(45,651) NET CASH FLOWS FROM OPERATING ACTIVITIES $181,144 $184,287 $524,167 $889,598 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and cash equivalents $589,849 $347,053 $370,687 $1,307,589 Investments --1,131,971 1,131,971 Total Cash and investments $589,849 $347,053 $1,502,658 $2,439,560 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None Page 120 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, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 2016 Budgeted Amounts Original Final Actual Variance with Final Budget 2015 Actual OPERATING REVENUES Charges for services $2,990,910 $2,990,910 $3,029,058 $38,148 $2,753,901 Total Operating Revenues 2,990,910 2,990,910 3,029,058 38,148 2,753,901 OPERATING EXPENSES Claims and insurance Insurance and administration 787,500 863,425 829,308 34,117 743,545 Health claims 2,050,000 1,951,090 1,814,245 136,845 1,999,219 Dental claims 140,000 162,985 162,981 4 138,811 Total Operating Expenses 2,977,500 2,977,500 2,806,534 170,966 2,881,575 Operating Income (Loss)13,410 13,410 222,524 209,114 (127,674) NON-OPERATING REVENUES (EXPENSES) Investment income 125 125 2,150 2,025 161 Total Non-Operating Revenues (Expenses)125 125 2,150 2,025 161 Change in net position $13,535 $13,535 224,674 $211,139 (127,513) NET POSITION - Beginning of Year 101,618 229,131 NET POSITION - END OF YEAR $326,292 $101,618 Page 121 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GARAGE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Budgeted Amounts Variance With 2015 Original Final Actual Final Budget Actual Operating Revenues Charges for services 700,010$ 700,010$ 700,395$ 385$ 812,415$ Total Revenues 700,010 700,010 700,395 385 812,415 Operating Expenses Excluding Depreciation Garage operations Personnel 253,940 253,940 125,134 128,806 248,959 Materials and supplies 232,670 232,670 134,335 98,335 167,395 Operation and contractual 237,770 237,770 230,923 6,847 253,637 Expenditure reimbursement paid to other funds 40,415 40,415 40,415 - 37,075 Capital 40,000 40,000 35,510 4,490 15,994 Total operating expenses excluding depreciation 804,795 804,795 566,317 238,478 723,060 Operating Income (Loss)(104,785) (104,785) 134,078 238,863 89,355 Non-Operating Revenues (Expenses) Investment income 50 50 1,029 979 72 Total non-operating revenues (expenses)50 50 1,029 979 72 Change in Net Position - Budgetary Basis (104,735)$ (104,735)$ 135,107 239,842$ 89,427 Ad justments to GAAP Basis Pension expense - IMRF 30,354 (9,552) OPEB expense 575 (8,131) Capital expenditures 35,510 15,994 Depreciation and amortization (15,902) (14,593) Total adjustments to GAAP basis 50,537 (16,282) Change in Net Position - GAAP basis 185,644 73,145 NET POSITION - Beginning of Year 193,190 120,045 NET POSITION - END OF YEAR 378,834$ 193,190$ 2016 Page 122 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL REPLACEMENT FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2016 With Comparative Actual Amounts for the Year Ended December 31, 2015 Budgeted Amounts Variance With 2015 Original Final Actual Final Budget Actual Operating Revenues Charges for services 586,185$ 586,185$ 586,185$ -$ 731,470$ Total Revenues 586,185 586,185 586,185 - 731,470 Operating Expenses Excluding Depreciation Capital expenditures 746,070 1,394,208 450,500 943,708 937,987 Miscellaneous - 24,485 24,482 3 9,886 Total operating expenses excluding depreciation 746,070 1,418,693 474,982 943,711 947,873 Operating Income (Loss)(159,885) (832,508) 111,203 943,711 (216,403) Non-Operating Revenues (Expenses) Gain (loss) on disposal of capital assets 53,410 53,410 79,706 26,296 100,983 Investment income 16,000 16,000 17,402 1,402 14,110 Transfers out (662,600) - - - - Total non-operating revenues (expenses)(593,190) 69,410 97,108 27,698 115,093 Change in Net Position - Budgetary Basis (753,075)$ (763,098)$ 208,311 971,409$ (101,310) Ad justments to GAAP Basis Capital expenditures 450,500 937,987 Depreciation and amortization (563,689) (479,247) Total adjustments to GAAP basis (113,189) 458,740 Change in Net Position - GAAP basis 95,122 357,430 NET POSITION - Beginning of Year 5,625,434 5,268,004 NET POSITION - END OF YEAR 5,720,556$5,625,434$ 2016 Page 123 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, 2016 Police Pension Firefighters' Pension Totals ASSETS Cash $96,379 $547,348 $643,727 Investments Certificates of deposit 635,945 504,280 1,140,225 Money markets 2,702,045 487,893 3,189,938 U.S. treasuries -803,901 803,901 U.S. agencies 4,723,644 3,939,090 8,662,734 State and local obligations 1,180,474 1,369,697 2,550,171 Corporate bonds 4,143,333 2,282,423 6,425,756 Mutual funds 19,950,332 15,005,648 34,955,980 Accrued interest 110,953 65,945 176,898 Prepaid items 2,960 2,103 5,063 Total Assets 33,546,065 25,008,328 58,554,393 LIABILITIES Accounts payable 12,015 12,908 24,923 Total Liabilities 12,015 12,908 24,923 NET POSITION Restricted for pension benefits $33,534,050 $24,995,420 $58,529,470 Page 124 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2016 Police Pension Firefighters' Pension Total AD DITIONS Contributions Employer $1,527,927 $1,801,476 $3,329,403 Employee 383,238 273,775 657,013 Total Contributions 1,911,165 2,075,251 3,986,416 Investment income Net appreciation in fair value 1,296,696 985,936 2,282,632 Interest 960,781 854,489 1,815,270 Total Investment Income 2,257,477 1,840,425 4,097,902 Less Investment expense 81,459 46,105 127,564 Net Investment Income 2,176,018 1,794,320 3,970,338 Total Additions 4,087,183 3,869,571 7,956,754 DEDUCTIONS Benefits and refunds 2,364,839 2,645,270 5,010,109 Administrative 39,522 40,567 80,089 Total Deductions 2,404,361 2,685,837 5,090,198 Net Decrease in Net Position 1,682,822 1,183,734 2,866,556 NET POSITION - Beginning of Year 31,851,228 23,811,686 55,662,914 NET POSITION, END OF YEAR $33,534,050 $24,995,420 $58,529,470 Page 125 S T A T I S T I C A L S E C T I O N Statistical Section This part of the Village's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time.126 - 135 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate it's property and sales taxes.136 - 142 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future.143 - 147 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place and to help make comparisons over time and with other governments.148 - 161 Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's financial information relates to the services the Village provides and the activities it performs.162 - 165 Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Page 126 2007 2008 2009 2010 Governmental Activities Net Investment in Capital Assets 62.4$ 61.6$ 60.6$ 55.3$ Restricted - - - 3.5 Unrestricted 19.7 22.7 16.9 17.4 82.1$ 84.3$ 77.5$ 76.2$ Business-type Activities Net Investment in Capital Assets 22.7$ 24.5$ 24.5$ 26.5$ Unrestricted 7.0 5.8 5.5 3.6 Total Business-type Activities 29.7$ 30.3$ 30.0$ 30.1$ Primary Government Net Investment in Capital Assets 85.1$ 86.1$ 85.1$ 81.8$ Restricted - - - 3.5 Unrestricted 26.7 28.5 22.4 21.0 Total Primary Government 111.8$ 114.6$ 107.5$ 106.3$ 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 127 2011 2012 2013 2014 2015 2016 56.2$ 57.6$ 59.3$ 60.7$ 60.7$ 60.5$ 9.4 9.4 9.8 11.5 11.3 12.3 13.7 14.0 13.3 12.1 (27.2) (26.1) 79.3$ 81.0$ 82.4$ 84.3$ 44.8$ 46.7$ 28.5$ 30.0$ 29.6$ 30.6$ 31.3$ 30.6$ 1.8 1.2 4.6 3.7 2.2 3.9 30.3$ 31.2$ 34.2$ 34.3$ 33.5$ 34.5$ 84.7$ 87.6$ 88.9$ 91.3$ 92.0$ 91.1$ 9.4 9.4 9.8 11.5 11.3 12.3 15.5 15.2 17.9 15.8 (25.0) (22.2) 109.6$ 112.2$ 116.6$ 118.6$ 78.3$ 81.2$ Page 128 2007 2008 2009 2010 Expenses Governmental Activities General Government 5.3$ 6.2$ 5.3$ 3.9$ Public Safety 12.3 12.6 11.9 13.2 Public Works 4.3 3.2 11.9 4.4 Culture and Recreation 1.8 2.0 1.7 1.7 Interest on Long-Term Debt 0.1 0.1 0.1 0.4 Total Governmental Activities Expenses 23.8 24.1 30.9 23.6 Business-type Activities Water 4.4 3.9 4.0 4.5 Sports Core 3.7 3.8 3.5 3.1 Total Business-type Activities Expenses 8.1 7.7 7.5 7.6 Total Primary Government Expenses 31.9$ 31.8$ 38.4$ 31.2$ Program Revenues Governmental Activities Charges for Services General Government 1.7$ 1.3$ 1.1$ 1.4$ Public Safety 0.9 0.8 0.8 1.1 Other Activities 0.0 0.0 0.1 - Operating Grants and Contributions 0.5 0.4 0.3 0.3 Capital Grants - - - 0.7 Total Governmental Activities Program Revenues 3.1 2.5 2.3 3.5 Business-type Activities Charges for Services W ater 4.6 4.0 4.0 5.1 Sports Core 3.8 3.6 3.3 2.5 Total Business-type Activities Program Revenues 8.4 7.6 7.3 7.6 Total Primary Government Program Revenues 11.5$ 10.1$ 9.6$ 11.1$ Net (Expense) Revenue Governmental Activities (20.7)$ (21.6)$ (28.6)$ (20.1)$ Business-type Activities 0.3 (0.1) (0.2) - Total Primary Government Net (Expense) Revenue (20.4)$ (21.7)$ (28.8)$ (20.1)$ Last Ten Fiscal Years Change in Net Position VILLAGE OF OAK BROOK Page 129 2011 2012 2013 2014 2015 2016 4.2$ 3.7$ 4.3$ 4.5$ 5.3$ 4.7$ 12.3 13.4 13.7 14.7 24.6 17.2 4.9 6.1 4.8 4.9 7.7 6.4 1.7 1.8 1.8 2.0 1.5 1.5 0.4 0.4 0.4 0.3 0.3 0.3 23.5 25.4 25.0 26.4 39.4 30.1 4.9 5.6 6.3 7.0 8.0 7.9 3.1 3.3 3.4 3.6 3.7 3.4 8.0 8.9 9.7 10.6 11.7 11.3 31.5$ 34.3$ 34.7$ 37.0$ 51.1$ 41.4$ 1.1$ 1.6$ 2.1$ 1.9$ 1.8$ 2.1$ 1.5 1.1 1.1 1.2 1.2 1.3 - - - - - - 0.3 0.3 0.4 0.4 0.2 0.2 0.7 - 0.5 0.3 - - 3.6 3.0 4.1 3.8 3.2 3.6 5.3 6.7 6.9 7.0 7.7 8.8 2.9 3.2 3.2 3.1 3.2 3.4 8.2 9.9 10.1 10.1 10.9 12.2 11.8$ 12.9$ 14.2$ 13.9$ 14.1$ 15.8$ (19.9)$ (22.4)$ (20.9)$ (22.6)$ (36.2)$ (26.3)$ 0.2 1.0 0.4 (0.5) (0.8) 0.9 (19.7)$ (21.4)$ (20.5)$ (23.1)$ (37.0)$ (25.4)$ Page 130 2007 2008 2009 2010 General Revenues and Other Changes in Net Position Governmental Activities Taxes Sales and Local Use Taxes 14.4$ 16.1$ 14.2$ 16.1$ Utility 4.2 4.5 4.9 4.7 Other 2.5 2.5 2.5 2.3 Investment Earnings 0.8 0.5 0.1 0.1 Miscellaneous 0.2 0.3 - - Transfers - - - - Total Governmental Activities 22.1 23.9 21.7 23.2 Business-type Activities Investment Earnings 0.3 0.2 - - Miscellaneous 0.8 0.2 - (0.1) Transfers - - - - Total Business-type Activities 1.1 0.4 - (0.1) Total Primary Government 23.2$ 24.3$ 21.7$ 23.1$ Change in Net Position Governmental Activities 1.4$ 2.3$ (6.9)$ 3.1$ Business-type Activities 1.4 0.3 (0.2) (0.1) Total Primary Government Change in Net Position 2.8$ 2.6$ (7.1)$ 3.0$ Data Source Audited Financial Statements Data in millions VILLAGE OF OAK BROOK Change in Net Position Last Ten Fiscal Years Page 131 2011 2012 2013 2014 2015 2016 16.0$ 16.7$ 17.3$ 17.7$ 18.1$ 19.3$ 4.7 4.9 5.0 5.2 5.7 6.0 2.2 2.5 2.4 2.5 2.8 2.7 - - 0.1 (0.2) 0.2 0.3 - - - - 0.2 - - - (0.2) (0.5) (0.5) - 22.9 24.1 24.6 24.7 26.5 28.3 - - - - - - - - - - - - - - 0.2 0.5 0.5 - - - 0.2 0.5 0.5 - 22.9$ 24.1$ 24.8$ 25.2$ 27.0$ 28.3$ 3.0$ 1.7$ 3.7$ 2.1$ (9.7)$ 2.0$ 0.2 1.0 0.6 - (0.3) 0.9 3.2$ 2.7$ 4.3$ 2.1$ (10.0)$ 2.9$ Page 132 2007 2008 2009 2010 2011 2012 General Fund Reserved 1,291,112$ 1,291,975$ 1,495,000$ -$ -$ -$ Unreserved 12,152,083 11,493,855 10,787,853 - - - Nonspendable - - - 1,917,000 2,087,000 2,545,898 Unrestricted Committed - - - - 364,483 224,878 Assigned - - - - - - Unassigned - - - 11,708,050 13,532,992 14,772,181 Total General Fund 13,443,195$ 12,785,830$ 12,282,853$ 13,625,050$ 15,984,475$ 17,542,957$ Infrastructure Fund Unreserved 2,110,918$ 4,792,595$ 4,682,620$ -$ -$ -$ Nonspendable - - - 337,699 - - Restricted - - - 5,004,945 5,864,870 5,398,644 Total Infrastructure Fund 2,110,918$ 4,792,595$ 4,682,620$ 5,342,644$ 5,864,870$ 5,398,644$ All Other Governmental Funds Restricted -$ -$ -$ 3,672,971$ 3,451,553$ 3,924,483$ Unreserved, reported in Special Revenue Funds 1,365,470 2,225,973 2,986,576 - - - Capital Project Fund 17,407 136,330 225,075 - - - Nonspendable - - - - - - Total All Other Governmental Funds 1,382,877$ 2,362,303$ 3,211,651$ 3,672,971$ 3,451,553$ 3,924,483$ Data Source Audited Financial Statements Last Ten Fiscal Years Fund Balances of Governmental Funds VILLAGE OF OAK BROOK Page 133 2013 2014 2015 2016 -$ -$ -$ -$ - - - - 168,016 109,092 53,406 58,444 224,878 - - - 102,525 205,050 - - 15,902,982 15,799,127 17,206,014 20,014,100 16,398,401$ 16,113,269$ 17,259,420$ 20,072,544$ -$ -$ -$ -$ - - - - 5,152,351 6,706,262 5,791,896 6,766,002 5,152,351$ 6,706,262$ 5,791,896$ 6,766,002$ 4,560,128$ 4,826,298$ 5,504,093$ 5,673,352$ - - - - - - - - - 775 775 - 4,560,128$ 4,827,073$ 5,504,868$ 5,673,352$ Page 134 2007 2008 2009 2010 2011 2012 Revenues Sales Tax Revenue 11,396,397$ 10,873,975$ 9,748,649$ 11,121,649$ 11,070,404$ 11,326,929$ Non-home Rule Sales Tax 2,618,565 4,874,978 4,410,438 4,833,425 4,833,972 5,230,137 Other Intergovernmental 1,711,638 1,893,862 1,771,733 2,545,066 2,411,395 1,841,378 Utility Taxes 4,247,675 4,520,563 4,922,115 4,669,414 4,657,683 4,900,869 Hotel/Motel Taxes 1,262,808 1,137,614 882,649 881,887 853,638 940,008 Licenses and Permits 850,965 720,847 741,380 843,139 948,872 1,201,998 Charges for Services 832,008 839,504 695,630 943,638 1,089,783 970,778 Fines and Penalties 375,717 345,937 313,395 229,246 248,120 231,865 Investment Income 682,728 431,753 80,345 110,837 31,018 47,363 Donations 45,150 - - - - - Miscellaneous 281,864 391,106 403,580 532,891 323,742 355,548 Total Revenues 24,305,515 26,030,139 23,969,914 26,711,192 26,468,627 27,046,873 Expenditures General Government 5,529,429 5,846,600 4,932,449 3,522,790 3,319,839 3,600,061 Public Safety 12,156,303 12,280,965 11,496,681 12,536,938 11,755,031 12,986,730 Public Works 2,460,937 2,394,176 10,458,211 4,036,771 4,698,190 4,706,731 Culture and Recreation 1,746,352 2,011,660 1,596,440 1,536,853 1,569,377 1,638,863 Capital Outlay 1,214,933 493,000 994,776 382,039 281,457 607,097 Debt Service - - 1,706,163 1,769,263 1,827,087 1,842,163 Interest and issuance costs 95,415 462,997 386,259 375,042 Total Expenditures 23,107,954 23,026,401 31,280,135 24,247,651 23,837,240 25,756,687 Excess of Revenues over (under) Expenditures 1,197,561 3,003,738 (7,310,221) 2,463,541 2,631,387 1,290,186 Other Financing Sources (Uses) Transfers In - - - - - 275,000 Transfers Out - - - - - - 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)- - 7,546,617.00 - 28,846.00 275,000.00 Net Change in Fund Balances 1,197,561$ 3,003,738$ 236,396$ 2,463,541$ 2,660,233$ 1,565,186$ Debt Service as a percentage of Noncapital Expenditures 0.00%0.00%5.95%9.35%9.40%8.82% Data Source Audited Financial Statements VILLAGE OF OAK BROOK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Page 135 2013 2014 2015 2016 11,385,834$ 12,149,324$ 12,346,857$ 13,072,837$ 5,171,232 5,384,857 5,637,241 5,991,262 2,530,416 2,274,102 1,925,962 1,939,598 5,047,306 5,203,835 5,673,868 5,967,345 964,684 1,049,631 1,194,811 1,270,131 1,686,269 1,448,471 1,385,341 1,882,598 1,021,858 1,044,934 1,058,929 1,075,234 184,959 189,060 177,588 159,799 86,287 (155,427) 138,593 203,467 - - - - 364,452 424,552 625,504 421,967 28,443,297 29,013,339 30,164,694 31,984,238 4,289,515 5,072,205 4,331,061 4,343,678 13,440,798 14,324,720 14,597,010 15,190,063 4,457,705 4,937,146 7,520,877 6,055,657 1,684,276 1,898,393 1,635,690 1,709,465 - - - - 1,876,754 425,000 384,913 420,000 362,129 346,094 326,465 309,761 26,111,177 27,003,558 28,796,016 28,028,624 2,332,120 2,009,781 1,368,678 3,955,614 - 156,840 - 516,221 (725,324) (630,897) (459,098) (516,221) - - - - - - - - - - - - - - - - (725,324.00) (474,057.00) (459,098.00) - 1,606,796$ 1,535,724$ 909,580$ 3,955,614$ 8.57%2.86%2.47%2.69% Page 136 Less:Total Taxable Levy Residential Commercial Industrial Railroad Tax-Exempt Assessed Year Property Property Property Property Property Value 2006 1,011,883 566,390 - - - 1,578,273 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 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 137 Total Estimated Estimated Direct Actual Actual Tax Taxable Taxable Rate Value Value - 4,734,819 33.333% - 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% Page 138 Tax Levy Year 2006 2007 2008 2009 2010 2011 2012 Tax Rates Village of Oak Brook - - - - - - - Basic Town 0.3878 0.3662 0.3567 0.3579 0.3875 0.4166 0.4567 Junior College #502 0.1929 0.1888 0.1858 0.2127 0.2349 0.2495 0.2681 Grade School #53 0.8319 0.8060 0.7936 0.8159 0.9164 1.0099 1.1465 High School #86 1.1418 1.0943 1.0804 1.0948 1.2011 1.3362 1.4984 Oak Brook Park District 0.1583 0.1530 0.1504 0.1555 0.1740 0.1904 0.2174 Total Tax Rates 2.7127 2.6083 2.5669 2.6368 2.9139 3.2026 3.5871 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 139 2013 2014 2015 - - - 0.4892 0.4993 0.4783 0.2956 0.2975 0.2786 1.2491 1.2932 1.2435 1.5681 1.5921 1.5592 0.2369 0.2442 0.2349 3.8389 3.9263 3.7945 Page 140 Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Inc.Apple Computer Costco Wholesale Costco Wholesale Integrated Data Storage LLC Macy's Macy's Macy's Home Store Neiman Marcus Neiman Marcus Nordstrom Rack Nordstrom Rack Nordstrom, Inc.Nordstrom, Inc. Optiv Security Inc Sears Roebuck & Co. Pirch Inc.Tiffany & Co. Room & Board Inc.Walter E. Smithe Furniture Top 10 total 6,028,281 $ Top 10 total 5,325,659 $ Total Sales Tax Revenue 13,103,115 $ Total Sales Tax Revenue 11,299,084 $ Top 10 as a Percent of Sales Top 10 as a Percent of Sales Tax Revenue 46.01%Tax Revenue 47.13% 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. 2016 2007 Current Year and Nine Years Ago Principal Revenue Taxpayers VILLAGE OF OAK BROOK Page 141 Village DuPage County Regional Fiscal Direct State DuPage County Water Transportation Year Rate Rate Rate Commission Authority 2007 1.00%5.00%0.25%0.25%0.25% 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% Data Source Village and County Records VILLAGE OF OAK BROOK Direct and Overlapping Sales Tax Rates Last Ten Levy Years Page 142 Village Non-Home Rule Total Rate Rate 0.25%7.00% 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% Page 143 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* 2007 2,485,000 720,000 42,195 3,247,195 0.21% 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% 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 110 for personal income and population data. Business-Type VILLAGE OF OAK BROOK Ratios of Outstanding Debt By Type Last Ten Fiscal Years Page 144 Total Total Outstanding Outstanding Debt Per Debt Per Personal Income Capita* 0.22%373.16 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 Page 145 (2) *Percentage (1)of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt Village of Oak Brook 280,000$ 100%280,000 DuPage County 221,573,337 3.94%8,729,989 DuPage Forest Preserve 181,884,431 3.94%7,166,247 DuPage Water Commission - 4.36%- Park Districts 2,289,126 73.50%1,682,508 Elementary School Districts 69,860,101 4.04%2,822,348 High School Districts 154,365,000 9.99%15,421,064 Junior College 502 209,562,178 4.08%8,550,137 Unit District 205 95,355,000 5.09%4,853,570 Subtotal-Overlapping Debt 934,889,173$ 49,225,862$ Total Direct and Overlapping Debt 935,169,173$ 49,505,862$ *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, 2016 Schedule of Direct and Overlapping Bonded Debt VILLAGE OF OAK BROOK Page 146 2007 2008 2009 2010 2011 Legal debt limit 136,066,752 $ 145,581,763 $ 154,132,970 $ 150,013,021 $ 137,966,087 $ Total net debt 3,205,000 2,750,000 2,400,000 2,055,000 1,710,000 applicable to limit Legal debt margin 132,921,063 142,831,763 151,732,970 147,958,021 136,256,087 Total net debt applicable 2.35%1.89%1.56%1.37%1.24% to the limit as a percentage of debt limit Last Ten Fiscal Years VILLAGE OF OAK BROOK Legal Debt Margin Information Page 147 2012 2013 2014 2015 2016 128,842,981 $ 117,240,487 $ 109,992,484 $ 109,084,108 $ 115,276,061 $ 1,335,000 1,080,000 820,000 555,000 280,000 127,507,981 116,160,487 109,172,484 108,529,108 114,996,061 1.04%0.92%0.75%0.51%0.24% Legal Debt Margin Calculation for Fiscal 2016 Assessed Value 1,336,534,043$ Legal debt margin 8.625% Debt limit 115,276,061 Debt applicable to limit General obligation bonds 280,000 Legal debt margin 114,996,061$ Page 148 Per Capita Total (2) Fiscal Personal Personal Unemployment Year Population Income Income Rate 2007 8,702 (E)169,718$ 1,476,886,036$ 3.8% 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% (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 149 2016 2008 Percentage of Total Percentage of Employer Rank Employees Village Population Rank Employees Village Population Oakbrook Center Mall 1 4,650 59.0%1 3,500 40.2% McDonald's Corporation 2 2,500 31.7%2 2,188 25.1% Advocate Healthcare 3 1,066 13.5%4 500 5.7% Ace Hardware 4 922 11.7%3 750 8.6% Hub Group 5 634 8.0% Inland Real Estate Group of Companies 6 416 5.3% Lion's Club International 7 300 3.8%8 300 3.4% TreeHouse Foods 8 291 3.7% Elkay Manufacturing 9 256 3.2%7 325 3.7% Millenial Trust Company 10 245 3.1% 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% Note - Only top 5 available for 2007. Data Source A-Z Database; Selective Telephone Survey Current Year and Eight Years Ago Principal Employers VILLAGE OF OAK BROOK Page 150 (1) Estimated Sales 2016 Municipality Rank Sales Per Capita Population Chicago 1 28,409,596,100$ 10,539$ 2,695,598 Naperville 2 3,317,442,600 23,386 141,853 Schaumburg 3 3,170,398,600 42,712 74,227 Springfield 4 2,835,066,900 24,388 116,250 Rockford 5 2,326,663,400 15,220 152,871 Aurora 6 2,264,557,400 11,443 197,899 Joliet 7 2,190,626,200 14,858 147,433 Peoria 8 2,165,393,600 18,828 115,007 Orland Park 9 2,071,352,300 36,489 56,767 Champaign 10 1,640,416,500 20,238 81,055 Mount Prospect 11 1,623,094,500 29,965 54,167 Glenview 12 1,611,797,000 36,065 44,692 Skokie 13 1,567,398,300 24,194 64,784 Niles 14 1,516,562,400 50,886 29,803 Vernon Hills 15 1,456,278,400 57,989 25,113 Bolingbrook 16 1,441,362,200 19,646 73,366 Elgin 17 1,432,376,700 13,240 108,188 Bloomington 18 1,404,533,700 18,334 76,610 Tinley Park 19 1,355,415,300 23,904 56,703 Oak Brook 20 1,310,311,500 166,220 7,883 Gurnee 21 1,265,634,800 40,442 31,295 Downers Grove 22 1,247,523,900 26,081 47,833 Arlington Heights 23 1,237,771,900 16,481 75,101 Elmhurst 24 1,226,149,100 27,548 44,509 Oak Lawn 25 1,182,360,200 20,857 56,690 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, 2016 Through December 31, 2016 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, 2016 through February 29, 2017. Page 151 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 2007 11,340,036 1.8%2,608,471 1.9%13,948,507 1.8% 2008 11,066,103 -2.4%4,272,671 63.8%15,338,774 10.0% 2009 10,024,077 -9.4%4,447,786 4.1%14,471,863 -5.7% 2010 10,457,375 4.3%4,703,153 5.7%15,160,528 4.8% 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% 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 152 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/12 Ended 12/31/13 Ended 12/31/14 Ended 12/31/15 Ended 12/31/16 FY 2013 January 861,209 $ 871,423 $ 965,587 $ 989,753 $ 994,739 $ 1.2% February 940,756 968,174 1,007,170 1,069,783 1,045,429 2.9% March 1,537,599 1,564,960 1,684,678 1,707,798 1,658,727 1.8% April 723,341 810,073 668,268 796,933 847,398 12.0% May 754,571 792,731 746,691 748,968 939,441 5.1% June 914,767 887,312 982,179 1,004,066 1,165,340 -3.0% July 835,975 851,415 911,040 928,749 945,183 1.8% August 905,677 917,736 994,734 1,011,901 1,041,277 1.3% September 820,913 956,861 1,070,696 993,355 1,218,034 16.6% October 859,114 947,429 980,261 1,011,858 1,045,293 10.3% November 1,020,879 1,026,555 1,039,263 1,086,052 1,084,781 0.6% December 973,045 1,046,394 953,862 1,027,421 1,036,284 7.5% Total 11,147,846 $ 11,641,063 $ 12,004,429 $ 12,376,637 $ 13,021,926 $ 0.9% Source: Village Records VILLAGE OF OAK BROOK Last Five Fiscal Years Cash Basis State Sales Tax Receipts By Month Page 153 FY 2014 FY 2015 FY 2016 10.8%2.5%0.5% 4.0%6.2%-2.3% 7.6%1.4%-2.9% -17.5%19.3%6.3% -5.8%0.3%25.4% 10.7%2.2%16.1% 7.0%1.9%1.8% 8.4%1.7%2.9% 11.9%-7.2%22.6% 3.5%3.2%3.3% 1.2%4.5%-0.1% -8.8%7.7%0.9% 4.4%3.1%3.1% From Preceding Year Percentage Change Page 154 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/12 Ended 12/31/13 Ended 12/31/14 Ended 12/31/15 Ended 12/31/16 January 379,832 $ 400,764 $ 432,662 $ 457,128 $ 457,292 $ February 424,255 444,306 447,936 495,179 485,225 March 715,934 740,816 758,692 795,630 778,457 April 314,634 337,086 292,394 361,858 383,224 May 346,379 332,311 331,429 338,862 431,470 June 422,481 396,344 416,907 457,660 539,151 July 385,728 390,534 405,594 423,983 434,261 August 419,118 418,782 436,072 469,228 481,286 September 443,846 433,709 457,975 456,114 567,454 October 395,512 414,622 439,287 468,027 481,499 November 435,755 420,938 453,963 474,287 476,167 December 448,755 441,524 463,924 469,279 482,166 Total 5,132,229 $ 5,171,736 $ 5,336,835 $ 5,667,235 $ 5,997,652 $ Source: Village Records VILLAGE OF OAK BROOK Last Five Fiscal Years Cash Basis Non-Home Rule Sales Tax Receipts By Month Page 155 FY 2013 FY 2014 FY 2015 FY 2016 5.5%8.0%5.7%0.0% 4.7%0.8%10.5%-2.0% 3.5%2.4%4.9%-2.2% 7.1%-13.3%23.8%5.9% -4.1%-0.3%2.2%27.3% -6.2%5.2%9.8%17.8% 1.2%3.9%4.5%2.4% -0.1%4.1%7.6%2.6% -2.3%5.6%-0.4%24.4% 4.8%5.9%6.5%2.9% -3.4%7.8%4.5%0.4% -1.6%5.1%1.2%2.7% 3.9%0.8%3.2%6.2% From Preceding Year Percentage Change Page 156 Fiscal Years 2007 2008 2009 2010 2011 2012 2013 General Merchandise 2,384,953$ 2,064,241$ 1,864,664$ 1,988,286$ 2,025,257$ 2,087,873$ 1,859,342$ Food 56,332 54,585 68,576 49,666 45,910 49,616 52,331 Drinking and eating places 1,266,893 1,248,272 1,270,903 1,388,881 1,428,598 1,506,289 1,615,029 Apparel 3,075,294 2,876,511 2,711,321 2,987,468 3,034,654 3,110,107 3,065,618 Furniture, H.H. and radio 1,080,877 1,076,836 840,999 957,980 975,472 1,090,244 1,251,860 Lumber, building and hardwa 85,382 39,312 32,472 17,588 12,853 24,600 10,653 Automotive and filling station 1,544,153 1,708,234 1,568,808 1,623,980 1,509,528 1,619,343 1,674,689 Drugs and other retail 1,240,805 1,141,709 1,046,055 1,265,890 1,472,117 1,124,986 1,250,569 Agriculture and all others 491,738 507,663 414,462 354,622 422,368 418,871 421,724 Manufacturers 72,399 72,003 100,642 83,952 126,281 174,572 687,312 Total 11,298,826$ 10,789,368$ 9,918,901$ 10,718,314$ 11,053,036$ 11,206,502$ 11,889,128$ 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 157 2014 2015 2016 1,611,302$ 1,408,191$ 1,305,272$ 57,974 170,497 167,143 1,717,184 1,770,370 1,844,551 3,141,898 3,078,876 2,989,258 1,421,458 1,606,454 1,613,318 8,686 6,623 4,642 1,682,593 1,698,040 1,683,947 1,530,596 1,817,539 1,857,751 486,652 506,631 1,368,475 451,814 238,943 204,789 12,110,156$ 12,302,164$ 13,039,146$ 1.00%1.00%1.00% Page 158 Fiscal Years 2007 2008 2009 2010 2011 2012 General Merchandise 590,403$ 1,024,873$ 926,187$ 973,309$ 1,006,608$ 1,028,630$ Food 8,577 19,275 20,652 19,332 20,436 22,769 Drinking and eating places 315,085 615,357 632,360 692,224 710,688 749,294 Apparel 768,375 1,433,462 1,353,324 1,492,720 1,516,414 1,554,292 Furniture, H.H. and radio 269,738 534,252 419,064 478,065 486,841 544,734 Lumber, building and hardware 21,290 19,735 16,233 8,807 6,427 12,299 Automotive and filling stations 207,328 410,617 419,622 438,722 413,502 444,986 Drugs and other retail 275,639 501,254 455,080 496,243 522,092 574,857 Agriculture and all others 108,766 224,370 191,955 160,284 190,247 186,919 Manufacturers 18,064 35,964 50,271 41,947 63,114 75,056 Total 2,583,266$ 4,819,159$ 4,484,747$ 4,801,654$ 4,936,368$ 5,193,836$ Village non-home rule sales tax rat 0.25%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. 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. VILLAGE OF OAK BROOK Non-Home Rule Sales Tax By Category Last Ten Fiscal Years Page 159 2013 2014 2015 2016 923,522$ 799,234$ 697,506$ 646,561$ 24,206 26,475 82,154 79,404 804,095 854,898 880,598 916,540 1,532,230 1,570,256 1,538,617 1,493,830 624,646 707,730 801,746 806,090 5,326 4,341 3,290 2,311 462,595 461,447 454,848 443,470 581,045 717,631 862,594 880,058 189,403 221,375 233,499 662,998 74,826 78,163 80,757 88,331 5,221,895$ 5,441,550$ 5,635,608$ 6,019,593$ 0.50%0.50%0.50%0.50% Page 160 Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 111 Board of Trustees 1.00 0.50 0.50 0.50 0.75 0.50 0.50 0.50 0.50 0.50 112 Village Clerk 3.25 3.25 3.25 1.50 1.75 1.95 1.25 1.25 2.75 2.08 121 Legal 0.25 0.25 0.25 0.25 0.25 0.35 0.25 0.25 0.25 0.35 131 General Management 3.25 2.50 2.50 2.25 3.00 2.55 2.50 3.00 2.00 1.72 132 Human Resources 1.00 1.00 1.50 1.75 1.50 1.75 2.00 2.00 2.00 1.10 134 Risk Management 0.50 0.50 0.50 0.50 0.50 0.40 0.50 0.50 0.50 0.20 136 General Services 1.25 1.25 1.25 2.00 1.75 1.35 0.00 0.00 0.00 1.20 137 Business Licenses 0.25 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 0.00 0.50 0.00 0.00 141 Purchasing 1.50 1.50 0.00 0.50 0.50 0.85 1.00 1.00 1.00 0.00 151 Information Services 3.50 3.50 3.00 2.25 2.00 2.60 2.00 2.00 2.00 2.65 152 Geographic Information Systems 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.35 Legislative and General Management Total 15.75 14.25 12.75 11.50 12.00 12.30 10.00 11.00 11.00 10.15 211 Financial Services Management 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.88 221 Accounting and Reporting 4.50 4.50 5.00 3.00 2.75 2.75 3.00 3.00 3.00 4.05 231 Customer Service 0.00 0.00 0.00 0.00 0.00 0.00 1.50 1.50 1.50 0.00 241 Purchasing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 Financial Services Total 5.50 5.50 6.00 4.00 3.75 3.75 5.50 5.50 5.50 5.93 321 Buildings and Grounds 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 335 Forestry 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 341 Garage Operations 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.48 351 Water Operations 7.50 7.50 7.50 6.50 6.00 6.00 7.00 7.00 7.00 7.00 360 Public Works Management 3.00 3.00 3.00 2.50 2.50 2.00 2.50 2.50 2.50 3.00 361 Streets - General Salaries 8.00 8.00 8.00 8.00 8.00 8.00 6.50 6.50 6.50 6.90 Public Works Total 21.50 21.50 21.50 20.00 19.50 19.00 19.00 19.00 19.00 20.58 511 Library General Operations 7.00 7.00 7.00 4.00 4.50 5.25 5.50 5.50 6.50 5.88 521 Technical Services 2.50 2.50 2.50 3.00 2.75 2.75 2.00 2.00 2.00 1.80 531 Reference and User Services 2.50 2.50 2.50 1.75 2.25 2.50 3.00 3.00 2.00 1.95 541 Youth Services 2.75 2.75 2.75 1.50 2.00 1.50 1.50 2.00 2.00 1.95 Library Total 14.75 14.75 14.75 10.25 11.50 12.00 12.00 12.50 12.50 11.58 (Continued) Last Ten Fiscal Years Budgeted Full-Time Equivalent Employees VILLAGE OF OAK BROOK Page 161 Function/Program 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 611 Police Services Management 3.00 3.00 3.00 3.00 2.00 2.00 3.00 3.00 3.00 3.00 621 Police Field Services 35.00 36.25 35.25 31.50 31.50 32.20 31.00 31.00 31.00 32.20 622 Police Auxiliary 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00 0.28 631 Police General Support 3.00 3.50 3.50 3.00 3.00 3.00 4.00 4.00 4.00 4.00 632 Police Investigations 7.00 7.00 6.00 8.00 8.00 7.00 6.00 6.00 6.00 6.00 633 Village Communications Center 12.00 12.50 12.00 9.00 7.00 0.00 0.00 0.00 0.00 0.00 634 Police Support Services 3.00 3.00 3.00 2.50 2.50 6.55 3.50 3.50 3.50 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 0.00 0.50 0.00 0.00 0.00 0.00 0.00 Police Total 63.00 65.25 62.75 57.00 54.50 50.75 47.50 47.50 52.50 48.73 700 Fire and EMS - General Salaries**33.00 33.00 33.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 711 Rescue and Fire Service Management 3.00 3.00 2.50 1.50 1.50 1.50 1.50 2.20 2.85 2.35 723 Fire Rescue and Training 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 731 Emergency Medical Service 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.40 741 Fire Prevention and Public Safety Education 2.00 2.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.60 Fire Total***44.00 44.00 41.50 38.50 38.50 38.50 38.50 39.20 39.85 43.55 811 Sports Core General Operations 2.75 2.75 2.25 1.75 1.50 0.75 0.25 1.50 0.50 1.40 812 Swimming Operations 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 813 Tennis 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 821 Sports Core Food & Beverage Operations 2.50 2.50 2.75 0.00 0.50 0.50 0.50 1.00 1.50 1.50 822 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 3.80 831 Golf Club General Operations 3.25 3.25 3.25 2.75 2.25 2.00 2.00 2.00 2.00 8.00 832 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 3.00 13.50 Sports Core Total 17.45 17.45 17.45 13.95 13.70 12.70 12.20 13.95 13.45 34.15 460 Engineering 4.00 4.00 4.00 3.50 3.25 3.50 3.50 3.50 3.50 3.40 911 Community Development Management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.50 2.50 2.60 921 Code Enforcement 4.00 4.00 3.50 3.50 3.50 4.25 4.25 5.50 6.00 5.91 Community Development Total 10.00 10.00 9.50 9.00 8.75 9.75 9.75 11.50 12.00 11.91 GRAND TOTAL ALL DEPARTMENTS 191.95 192.70 186.20 164.20 162.20 158.75 154.45 160.15 165.80 186.58 **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 162 Function/Program 2007 2008 2009 2010 2011 Public Safety Police Physical arrests 319 293 399 357 267 Parking violations 1,472 1,420 1,113 877 1,245 Traffic violations 4,240 3,371 3,464 4,090 3,374 Fire EMS Incidents 1,093 1,118 1,069 1,006 1,091 Fire Incidents 823 752 802 918 788 Communications Center Police calls dispatched 10,880 10,667 9,911 9,666 9,666 Fire/EMS calls dispatched 2,250 2,214 2,176 2,240 2,156 Water New water meters installed 31 21 10 10 11 Water main breaks repaired 109 58 63 59 50 Water pumped (Mil. Gals.)1,336 1,210 1,105 1,136 1,060 Library Total Circulation 99,009 96,631 90,287 87,906 84,768 Avg. Daily Circulation 292.1 282.5 267.9 260.5 253.0 Total Holdings 106,181 105,493 111,051 116,386 124,757 Community Development Building permits issues 856 742 606 696 705 Inspections 1,754 1,772 2,090 2,193 2,139 Estimated construction value 81,953,372$ 46,663,489$ 51,776,407$ 51,559,533$ 58,775,804$ Sports Core B&T Recreation Membership 291 303 259 300 320 Social Memberships 120 129 80 64 59 Total Events 226 202 123 39 35 Golf Memberships 235 226 219 207 182 Total Golf Rounds 43,561 40,336 39,686 37,750 35,196 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 163 2012 2013 2014 2015 2016 234 178 196 208 191 636 501 306 299 901 3,137 2,897 2,986 2,082 1,465 1,113 1,191 1,321 1,329 1,432 656 667 742 600 630 12,696 18,552 19,853 19,442 23,924 2,071 2,294 2,448 2,246 2,407 14 15 16 33 19 61 48 36 17 43 1,173 1,113 1,080 1,152 1,087 91,017 93,300 90,485 91,205 112,423 269.0 274.0 265.0 270.0 318.0 128,343 131,658 131,973 102,441 97,201 770 811 837 850 841 2,311 2,617 2,648 2,790 2,999 76,987,646$ 131,935,998$ 110,922,495$ 174,948,935$ 99,520,330$ 363 347 338 307 317 67 68 82 81 77 56 66 72 71 75 154 146 143 142 145 38,637 34,670 33,861 34,019 39,324 Page 164 Function/Program 2007 2008 2009 2010 2011 2012 Public Safety Police Stations 1 1 1 1 1 1 Area patrols 5 5 5 4 5 5 Patrol units 15 15 15 12 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)115 105 105 105 105 105 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 165 2013 2014 2015 2016 1 1 1 1 5 5 5 5 11 11 11 11 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 1 1 1 1 4 4 4 4 5 4 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.