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2009-2013 Five Year PlanSECTION Introduction General Assumptions Relationship to the Annual Budget General Corporate Fund Hotel/Motel Tax Fund Motor Fuel Tax Fund Foreign Fire Insurance Tax Fund Infrastructure Fund Promenade Special Tax Allocation Fund Water Fund Sports Core Fund Self -Insurance Fund Garage Fund Equipment Replacement Fund Police and Firefighters' Pension Funds PAGE 1 1 2 4 18 23 27 31 36 40 46 60 64 68 72 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN INTRODUCTION The Village of Oak Brook Five -Year Financial Plan is intended to provide the community with a long-range projection of financial condition for each of the thirteen funds that comprise the financial structure of the Village of Oak Brook. Although it is neither as detailed nor as precise as the Village's annual Municipal Budget, it is an extremely useful tool for the budgeting process in that it provides a means of assessing the long-range financial impact of current decisions. Each fund in the Village's financial structure is a separate financial entity. Although the Village's audited financial statements are prepared on an accrual or modified accrual basis (as applicable and consistent with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board), the Five -Year Financial Plan, like the annual Municipal Budget, is prepared and presented on a cash basis. This results in a more easily understood and more useful document. The presentation for each fund includes a summary, revenue projections, a general long-range operating budget and a capital improvement program, if applicable. The summary brings together the revenue and expenditure projections and presents a rolling five-year operating statement, beginning with cash available as of January 1, 2008 as reported in the audited financial statements as of December 31, 2007. GENERAL ASSUMPTIONS The principal assumptions for the Five -Year Financial Plan involve the rates for general inflation, "personnel inflation" (direct personnel costs as well as costs of fringe benefits and training), interest rates, and the rate of growth in sales tax, the principal revenue source of the Village. The 2009-2013 Five -Year Financial Plan is based on the following general assumptions: General inflation at the rate of 2.5% per year. • Personnel inflation, (including benefits, training and merit adjustments applicable to personnel not at top -of -grade) generally at 2.0% above the general inflation rate (or 4.5% per year). This rate has been reduced from the 5.0% used in previous editions of the rive - Year Financial Plan in recognition of the need to reduce the growth in personnel costs due to the current recessionary economy. Interest earnings on invested funds at rates ranging from 1.50 % to 7.5%, depending upon the fund, the type and length of investment. VILLAGE OF OAK BROOK 2009-2013 FIVE -'YEAR FINANCIAL PLAN • Due to the current economic situation, sales tax receipts for 2009 are not projected to increase from 2008 estimated amounts; for 2010 and 2011, receipts are projected to increase by 3%; and for 2012 and 2013, receipts are projected to increase 4%. Receipts from the non -home rule sales tax, which was increased by referendum from 0.25% to 0.50% effective January 1, 2008, are projected using the same assumptions as the growth in general sales tax receipts. FY 2009 is the first full year of collections from the increased tax rate as the Village did not receive the first payment at the higher rate until April, 2008. In years 2010-2013, the long-range operating budget projections are adjusted by an experience factor intended to take into account normal positive variances in expenditures across the thousands of accounts that make up the Village's financial structure and to partially offset the effects of compounding of the inflation assumptions in the later years. Other assumptions specific to particular funds are described in the narrative preceding the presentation of each fund. RELATIONSHIP TO THE ANNUAL BUDGET In years prior to 2004, the Five -Year Financial Plan was prepared separately and in advance of the Municipal Budget, usually following the Village Board Objectives discussion. Once again for 2009, staff has prepared the 2009-2013 Five -Year Plan, 2009 Budget, and 2009 Program Objectives concurrently. This procedural revision was done in order to streamline the budget process by reducing the amount time spent overall by staff and the`Village Board on budget -related activities. Due to this process revision, the first year of the Five -Year Financial Plan (2009) is based on the actual 2009 Budget amounts. The 2009 Budget and 2009-2013 continues the Village Board directive that staff should prioritize items for inclusion in the 2009 budget and Five -Year Financial Plan using the following hierarchy: • Projects or expenditures necessary to maintain or replace critical equipment, projects already started yet not completed, projects that are the recipient of grant funding, and items required to comply with Illinois and Federal law. • Projects or expenditures that will directly.contribute to increased revenues from sales tax, utility and telecommunications taxes, and Hotel/Motel taxes. • Projects or expenditures that will significantly increase the efficiency of Village operations. • Projects or expenditures. that will significantly improve the safety, convenience, or quality of life for residents, non-residents, and businesses. _2_ VILLAGE OF OAK BROOK 20092013 FIVE-YEAR FINANCUL PLAN • Projects or expenditures that will improve the aesthetics of the Village. • Discretionary projects or expenditures that add new services or amenities. The financial crisis that is facing our country, which from a historical perspective is the worst since the Great Depression, is having a major negative impact here in Oak Brook as well as nearly every other business and local government. The impact of this recessionary economy is particularly difficult for the General Corporate Fund, which is the major operating fund of the Village. Details of the impact of the economy are contained on the pages addressing the particular fund, but overall the preparation of this Five -Year Plan has been extremely challenging. The actual 2009 Municipal Budget is provided in a separate document; whereas, the Five -Year Financial Plan is structured by Fund, the operating budget is structured according to cost centers (called "programs") and is presented at a level of detail far beyond that reflected in the Five -Year Plan. The capital improvement budget is based on the capital improvement program for the first year of the Five -Year Plan. At the fund level in the Budget document, revenue budgets are brought together with operating and capital improvement expenditure budgets to present a cash -basis income statement for each fund (called a "Fund Summary"). The Fund Summary can be compared to the first year of the relevant Five -Year Financial Plan Summary to ensure that the Budget matches the first year of the Five -Year Plan for that fund. -3- VILLAGE OF OAK BROOK 2009-2013 FM -YEAR FINANCIAL PLAN GENERAL CORPORATE FUND DESCRIPTION: The General Corporate Fund supports the majority of Village operations and is of paramount importance to the financial condition of the Village. Historically, its resources have been used for operations of the major Village departments, capital improvements, contributions to pension funds (in lieu of property tax levies), transfers to the Garage and Equipment Replacement Funds (through user charges), and loans to other funds as appropriate. OVERVIEW: As we observed the beginning of the year sales tax trends as well as what was going on in the Village and national economy, it became readily apparent that for 2009 and thereafter there needed to be major reductions in expenditures in order to stabilize the long -tern budget of the General Fund. With personnel costs accounting for a significant portion of expenditures, long-term planning needed to provide a means for lowering these costs. Senior staff members held a number of meetings during the middle of the second quarter whereby various revenue increases and expense reduction strategies were discussed. From there, meetings were held with Village officials whereby many of these budget ideas were discussed. The following highlights some of the major budget issues facing the Village for 2009: • Sales tax revenue to the General Corporate Fund is projected at $11,150,000 for 2008, which is $1 million below the 2008 Budget amount. Despite the addition of the Oak Brook Promenade, sales tax revenue for 2008 will be nearly $200,000 or 1.7% below the 2007 amount and has increased only a cumulative $12,000 since 2006. • Due to near historically low investment yields, interest revenue, which is a major funding source to the General Fund, is expected to be $225,000 below budget for 2008. For 2009, only $190,000 is expected, which is a budget decline of $310,000. • Declines in the equity markets have had a major impact on the Village's Police and Firefighters' Pension Funds. For 2008, unrealized losses resulting from the market declines are projected at $4.5 million and $3.3 million, respectively. Since the employee contribution is at a rate fixed by State statute, all of the investment losses must be absorbed by the Village (amortized until 2033) and will have a major impact on the Village's contributions from the General Corporate Fund going forward. For 2009 and thereafter, Police and Firefighters' Pension Fund contributions are projected to increase by approximately $350,000; the actual amount will not be --4— VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN determined until an actuarial study is completed in early 2009 and could change depending on the investment markets for the remainder of the year as well as possible changes in actuarial assumptions. • The need to set aside significant additional funding for new forestry activities, such as a contract forester, gypsy moth control, and emerald ash borer eradication. An additional $200,000 has been budgeted in 2009 for these new activities. The 2009 Budget requires an increase in IRMA contributions of $237,000 across several funds, with much of the cost funded by the General Corporate Fund. This change is due to the Village having an increase in its experience modifier as well as the elimination the interest income credit of $141,000 that the Village received in 2008 (and at varying amounts in prior years) due to investment losses sustained by 1RNIA. Based on the conclusion of the 2009 Budget process, the following highlights the budget changes that impact 2009 and therealler as we look to improve the long-term financial future of the General Fund: Revenue: The principal source of revenue to the General Corporate Fund, and to the Village, is the sales tax. As a result, the rate of growth in sales tax receipts determines, to a significant extent, the Village's ability to meet the needs of the community and its overall financial condition. It has been the practice of the Village to project growth in sales tax receipts conservatively, and that practice is continued in this edition of the Five - Year Financial Plan (See GENERAL ASSUMPTIONS). For 2009, sales tax revenue is projected to be $11,150,000, which is unchanged from the 2008 estimated amount and $1,000,000 below the 2008 Budget amount. Receipts from the utility tax on electric, natural gas, and telecommunications service are expected to end the year $85,000 or 2.0% above budget. In order 'to partially address revenue shortfalls, the Village Board has already approved an ordinance increasing the telecommunications tax rate from 5% to 6% (the maximum -rate allowed by law) effective January 1, 2009 with collections expected to begin in April, 2009. Also within this category, the proposed 2009 budget includes a recommendation to increase the ten -tiered electricity tax to the statutory maximum rates. The current rate structure was designed to approximate 5% of gross receipts as it existed in 1998; thus, the Village has seen very little growth in this revenue since that time. Although the enabling law in 1998 had maximum rates associated with, we can not enact the new (and slightly higher) rates until after December 31, 2008. Taking into account these tax rate changes, utility tax collections for 2009 are budgeted to increase by $600,000 or 13.7% from the 2008 estimated amount. In 2010, further increases are projecting taking into account a full year of collections at the higher rates, and inflationary increases of 3% have been assumed in subsequent years. —6— VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN State shared revenues in total are projected using information provided by the Illinois Municipal League and for 2010 and thereafter receipts are projected to increase approximately 3% per year. As many of these State revenue sources are economically sensitive (such as income tax receipts), it is too early to predict the impact it will have on Oak Brook. The rates imposed for a number of license and fee categories, such as liquor licenses, ambulance fees, and building permits are projected to increase and should positively impact revenues. The 2009 Budget includes 2 new fee categories- a fee structure for providing fire inspection services (presently done at no cost) designed to generate $60,000 annually in order to recover the cost of this service, and a new Towing Administration Fee expected to generate $75,000 annually in order to offset the costs associated with these types of arrests. Interest revenue of only .$190,000 is expected for 2009, a decrease of $310,000 from the 2008 Budget due to significant declines in interest rates. Most other revenue sources are projected to increase from 0% to 3% per year for the duration of the Five -Year Financial Plan. Operations: Legislative and General Management. A net decrease of 1.50 FTE is included for 2009 due to the expected retirement of the Purchasing/Information Service Director (will not be replaced) and the transfer of 0.50 FTE to the Finance Department as it assumes responsibility for coordination of the requisition process. Also in 2009, the Village must complete a potential public safety Wi-Fi network as the "CY Pres" Project required as part of the settlement agreement relating to the Primeco class action lawsuit. The budget for legal services has been increased in 2009 due the cost of several known lawsuits against the Village; for 2010 and thereafter, the cost of legal services is expected to moderate to a more typical level. The projections include a significant increase in the cost of liability insurance provided by IRMA. Partial funding of the Independence Day/Taste of Oak Brook Celebration has been included. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Financial Services. The budget is increased by 0.50 FTE due to the transfer of the purchasing requisition function to the Finance Department, There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Public Works. An additional Building Maintenance Employee position, which was originally included in the 2002 Budget but removed in the 2003 Budget, could not be accommodated in this Five -Year Financial Plan. This position is needed in recognition of increased demands resulting from the completion of several significant municipal building projects. The 2009 Budget and each year thereafter continues to fund the building maintenance function with only one full-time employee and outsourcing many of the new building maintenance functions. Beginning in 2009 and each year thereafter, the Forestry Program budget is increased by approximately $200,000 annually due to the new costs for a contract forester as well as expenditures related to Gypsy Moth and the Emerald Ash Borer. Due to limited General Fund resources in 2009, the roof replacement project for the Public Works facility has once again been deferred to 2010. VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN Libra . For 2009, the Library budget in total is projected to decrease by $70,940 or 4.84% from 2008. Much of this decrease is due to significant temporary reductions in materials and programming as well some reductions in part time hours due to the General Coiporate Fluid budget issues. FTE staffing is budgeted to remain at 2008 levels for the entire Five -Year Financial Plan. Beginning in 2010 and thereafter, the Library operating budget is restored to 2008 levels. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Police. The FTE staffing levels in the Police Department are budgeted to decrease by 2.50 FTE in 2009 by deferring replacement of two positions until 2011 and eliminating one part-time telecommunications operator position. The part-time accreditation manager position will be eliminated on July 1, 2009. The budget also includes significant increases in Police Pension contributions. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Fire. The Fire Department staffing level is budgeted to decrease by 1.50 FTE in 2009 by not replacing one secretary position and reassigning 0.50 of another secretary position to the Community Development Department since most of the Fire Prevention and Public Safety Education Program has been shifted to this Department for 2009. The budget includes significantly higher contributions to the Firefighters' Pension Fund as well as a provision for retroactive payment for union employees should a settlement be reached on a collective bargaining agreement in 2009. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Commum4y Development. The most significant change in the 2009 Budget is that this department will assume responsibility for most fire inspection activities previously accounted for in the Fire Department. Due to this change, a 0.5 FTE Secretary has been re -assigned to this program as well as the part time salaries for the Fire Inspectors, The 2009 Budget also reflects elimination of a 1.00 FTE Building Inspector due to an employee retiring who will not be replaced, resulting in an overall reduction of 0.5 FTE for the entire department. The 2009 Budget also includes $26,900 for consulting services related to the Commercial Corridor Revitalization Project. There are no other substantial changes from 2008. Exceptional Charges: Exceptional Charges.in the General Corporate Fund include: • Contributions to the Police and Firefighters' Pension Funds (in lieu of property taxes). These contributions are expected to increase by approximately $350,000 due to current investment market conditions and are projected at these elevated levels for the duration of the Five -Year Financial Plan. _7_ VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN • The annual transfer to the Sports Core Fund to cover the net costs of Polo and Open Fields programs as well as staff time associated with the administration of community events has been eliminated in 2009 and thereafter. • Debt service on installment contract certificates issued to fund a portion ($4 million) of the Municipal Complex Project. • Although budgeted for in 2008, vehicle replacement charges have been eliminated for 2008 as well as 2009 due to General Corporate Fund revenue issues: Beginning in 2010 and thereafter, full funding of the amounts normally required have been included in the projections. • A transfer equal to 20% of the incremental sales tax revenue generated from the Promenade development to the Promenade Special Tax Allocation Fund. • An annual transfer to the Infrastructure Fund in order to offset costs (primarily administrative) funded by the Infrastructure Fund that relate to General Corporate Fund activities (such as Forestry, Buildings & Grounds, etc.). Ca italImprovements: The replacement of the Public Works Building roof, originally scheduled for 2003, has been deferred to 2010. Other significant capital expenditures reflected in the Plan include continued outlays for maintaining our current technology systems, screening of HVAC units at various Village buildings, repairs and maintenance of Old Butler School, updates to Fire Station 42, and improvements to the east side entrance at the Municipal Complex. Since the number of requests for the capital improvement program in years 2010 and 2011 are substantial, the requested amount in total has been reduced to $700,000 annually. At this time this appears to be an annual amount the General Corporate Fund can support as prioritization of specific projects that are this far into the future is very difficult. OTHER CONSIDERATIONS: Although the six month reserve fin is expected to end 2009 at 5.86 months, an increase in cash balance is projected beginning in 2010 once all of the budget changes noted here have been fully implemented. That being said, improved financial condition is predicated on getting back to normal inflationary revenue increases, and we can not minimize the fact that we are in the worst economic environment in the last 70 years. If the economy stays flat for a period of time or continues to decline, further budgetary reductions will be required that will likely result in decreased service levels to Village residents and businesses. Unrestricted Cash Available, January 1, 2008 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Unrestricted Cash Available at Year -End 6Months Operating $9,876,274 Village of Oak Brook 2009-2013 Five -Year Financial Plan GENFRAL CORPORATE FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $20,781,600 $19,777,095 $20,501,150 $21,247,779 $21,790,745 $22,531,149 $23,294,179 18,145,955 17,863,445 18,100,250 17,237,432 18,023,377 18,748,932 19,297,645 2,398,400 2,001,360 2,069,115 2,758,039 2,826,169 2,893,845 2,960,011 237,245 (87,710) 331,785 1,252,308 941,199 888,372 1,036,523 9,876,274 9,876,274 9,341,174 9,167,459 9,719,767 9,960,966 10,149,338 10,113,519 9,788,564 9,672,959 10,419,767 10,660,966 10,849,338 11,185,861 0 0 0 0 0 0 0 0 0 0 s 0 0 0 10,113,519 9,788,564 9,672,959 10,419,767 10,660,966 10,849,338 11,185,861 786,320 447,390 505,500 700,000 700,000 700,000 700,000 $9,327,199 $9,341,174 $9,167,459 $9,719,767 $9,960,966 $10,149,338 $10,485,861 $9,579,778 $9,579,778 $9,390,658 $9,422,536 $9,839,623 $10,227,238 $10,527,178 -g- Description General Sales Tax State Income Tax Replacement Tax York Township Road and Bridge Tax State Income Tax -Use Tax Charitable Games Tax Grants Telecommunications TaxA tility Total Intergovernmental Liquor License Scavenger Licenses Taxi Licenses Tobacco License Rale Licenses Building Permits Electrical Permits Plumbing Permits Alarm Application Fee Annual Alarm Permit Fee Accessory Structure Permits HVAC Permits Demolition Permits Application/Occupancy Fees Miscellaneous Licenses & Permits Solicitation Permits Total Licenses and Permits Village of Oak Brook 2009.2013 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2008 2008 Budget Estimate 2009 2010 2011 2012 2013 12,150,000 11,150,000 11,150,000 11,500,000 11,800,000 12,300,000 12,800,000 792,000 875,000 835,000 860,000 886,000 913,000 940,000 323,000 330,000 330,000 340,000 350,000 361,000 371,000 36,900 36,000 37,000 37,000 37,000 37,000 37,000 118,000 122,000 12 6, 000 129,000 133,000 137,000 141,000 1,000 390 500 500 500 500 500 10,000 13,000 10,000 10,000 10,000 10,000 10,000 4,290,000 4,375,000 4,975,000 5,300,000 5,450,000 5,600,000 5,775,000 17,720,900 16,901,390 17,463,500 18,176,500 18,666,500 T9,358,500 20,074,500 120,000 110,000 121,000 121,000 121,000 121,000 121,000 9,000 8,000 8,000 8,000 8,000 8,000 8,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 2,100 1,400 1,400 1,400 1,400 1,400 1,400 300 300 300 300 300 300 300 305,000 290,000 350,000 350,000 350,000 350,000 350,000 160,000 130,000 145,000 145,000 145,000 145,000 145,000 25,000 18,000 25,000 25,000 25,000 25,000 25,000 11,500 10,500 10,500 10,500 10,500 10,500 10,500 150 150 150 150 150 150 150 23,000 18,500 20,000 20,000 20,000 20,000 20,000 40,000 16,000 35,000 35,000 35,000 35,000 35,000 20,000 10,000 15,000 15,000 15,000 15,000 15,000 58,000 54,000 60,000 60,000 60,000 60,000 60,000 70,000 33,000 35,000 35,000 35,000 35,000 35,000 750 1,000 1,000 1,000 1,000 1,000 1,000 862,800 718,850 845,350 845,350 845,350 845,350 845,350 Village of Oak Brook 20092013 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2008 2008 Description Budget Estimate 2009 2010 2011 2012 2013 Elevator Inspections 74,000 75,000 78,000 80,340 82,750 85,233 87,790 Zoning/Subdivision Appl. Fees 20,000 10,000 20,000 20,000 20,000 20,000 20,000 Plan Review Fees 65,000 65,000 75,000 75,000 75,000 75,000 75,000 Building/Inspection Fees 190,000 150,000 180,000 180,000 180,000 180,000 180,000 Fire Inspection Fee 60,000 60,000 60,000 60,000 60,000 Ambulance Fees 278,000 290,000 305,000 314,150 323,575 333,282 343,280 Toll Road Fire Service 60,000 65,000 65,000 66,950 68,959 71,027 73,158 Special Services -EMS 15,000 15,000 15,000- 15,750 16,538 17,364 18,233 Special Services -Fire 6,000 6,000 6,000 6,300 6,615 6,946 7,293 False Alarm -Fire 15,000 12,800 15,000 15,000 15,000 15,000 15,000 Passport Fees 2,000 1,000 1,000 1,000 1,000 1,000 1,000 Fingerprinting 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Towing Fee 75,000 75,000 75,000 75,000 75,000 Special Services -Police 25,000 22,000 22,000. 23,100 24,255 25,468 26,741 Field Services -Police 200 200 200 200 200 200 200 Misc. Support Services -Police 5,000 5,000 5,000 5,000 5,000 5,000 5,000 False Alarm -Police 39,000 32,000 35,000 35,000 35,000 35,000 35,000 Eng. Plan Review & Inspection 10,000 19,000 15,000 15,000 15,000 15,000 15,000 Subdivision Review & Inspection 5,000 68,050 10,000 10,000 10,000 10,000 10,000 Fire Plan Review Fees 13,000 12,000 12,000 12,000 121000 12,000 12,000 Library Services 12,000 12,500 12,500 122500 12,500 12,500 12,500 Bad Debt (2,800) 0 (2,800) (2,800) (2,800) (2,800) (2,800) Total Charges for Services 835,400 864,550 1,007,900 1,023,490 1,039,591 1,056,220 1,073,395 Court Fines 338,000 300,000 309,000 318,000 328,000 338,000 348,000 Village Fines 30,000 46,000 48,000 48,000 48,000 48,000 48,000 Training Reimbursement -Police 5,000 11,150 8,000 8,000 8,000 82000 8,000 -� 12- 2010 2011 Village of Oak Brook 2013 10,500 2009-2013 live -Year Financial Plan 10,500 10,500 GENERAL CORPORATE FUND 0 0 Revenue Projections 100,000 2008 2008 Description Budget Estimate 2009 Library Fines 15,000 10,800 10,500 Library Cafe Sales 0 0 0 Independence Day 137,917 73,250 100,000 Library Donations 10,000 0 0 Interest 500,000 275,000 190,000 IMF/Franchise Fees 121,500 130,000 130,000 Autumn Fest 0 5,000 5,500 Rental Income 60,000 61,800 88,000 IMF Cy Pres Refund 0 0 0 Road Maintenance Reimbursement 12,000 12,400 13,000 Miscellaneous 10,000 8,000 10,000 Litigation Settlement 921,639 97,905 0 Total Other Revenues 1,101,500 1,031,305 912,000 Transfer From Water Fund 249,000 249,000 260,000 Transfer From Hotel/Motel Tax Fund 12,000 12,000 12,400 Total Interfund Revenues 261,000 261,000 272,400 Total Revenue 20,781,600 19,777,095 20,501,150 -� 12- 2010 2011 2012 2013 10,500 10,500 10,500 10,500 0 0 0 0 100,000 100,000 10 0, 000 100,000 0 0 0 0 183,349 194,395 199,219 202,987 133,900 137,917 142,055 146,316 5,500 5,500 5,500. 5,500 91,000 94,000 98,000 101,000 0 0 0 0 13,390 13,792 14,205 14,632 10,000 10,000 10,000 10,000 0 0 0 0 921,639 950,104 973,479 994,935 268,000 276,000 284,000 292,000 12,800 13,200 13,600 14,000 280,800 289,200 297,600 306,000 21,247,779 21,790,745 22,531,149 23,294,179 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Adjustment for Budget Goal Attainment Exceptional Charges Police Pension Contribution Firefighters' Pension Contribution Vehicle Replacement Charges Transfer to Sports Core Fund Transfer to Infrastructure Fund Transfer to Promenade T.I.F. Fund Installment Contract Debt Service Total Exceptional Charges Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 2009-2013 Five -Year Financial Plan GENERAL CORPORATE FUND Long -Range Operating Budget 2008 Budget 2008 Estimate $13,965,695 $13,486,800 622,715 593,340 3,557,545 3,783,305 $18,145,955 $17,863,445 2009 2010 2011 2012 $826,706 $851,508 $877,053 608,915 $13,597,810 $13,835,706 $14,698,401 $15,359,830 578,395 580,555 644,627 660,743 3,924,045 3,728,404 3,830,777 3,925,100 $18,100,250 $18,144,665 $19,173,806 $19,945,672 $18,100,250 $17,237,432 $18,023,377 $18,748,932 2013 $16,051,022 677,262 4,021,872 $20,750,156 $19,297,645 $616,685 $600,710 $779,250 $802,628 $826,706 $851,508 $877,053 608,915 646,350 781,565 $805,012 $829,162 $854,037 $879,658 400,000 0 0 635,100 648,000 659,000 667,000 157,800 157,800 0 0 0 0 0 158,400 158,400 155,000 160,000 165,000 170,000 175,000 80,000 61,500 53,300 55,300 57,300 59,300 61,300 376,600 376,600 300,000 300,000 300,000 300,000 300,000 $2,398,400 $2,001,360 $2,069,115 $2,758,039 $2,826,169 $2,893,845 $2,960,011 $786,320 $447,390 $505,500 $700,000 $700,000 $700,000 $700,000 $21,330,675 $20,312,195 $20,674,865 $20,695,471 $21,549,546 $22,342,777 $22,957,656 Village of Oak Brook 2009.2013 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2008 2008 Budget Estimate 2009 2010 2011 2012 2013 Legislative and General Management I.T. Immplementation: Computer Hardware And Software 172,520 186,000 118,000 115,615 133,865 48,365 50,865. Wi-Fi Project (IMF Litigation Cy Pres Designated Project) 147,000 0 157,000 Microfilm Reader/Printer 15,000 Emergency Operations Equipment 10,500 0 High Volume Copier (Village Administration) 25,000 Fireproof Cabinets 25,000 Office Furniture 5,500 Postage Machine 9,500 Engineering and Capital Projects I I Municipal Complex: Undesignated Remodeling 15,000 10,000 15,000 15,000 15,000 15,000 15,000 interior/Exterior Siguage 5,000 5,000 15,000 VH/PW Security Camera System 75,000 0 96,500 Electric Survey 25,000 FS No. 1 Ductwork Cleaning -5,750 5,750 6,000 6,250 Galvanized Plumbing Replacement 9,000 9,000 j Electric Service Meter Adjustments 5,000 Reception Area Floor Improvements 2,925 20,000 Lower Level Washroom Improvements 25,000 _ Firing Range Soundproofing 12,000 Hot Water Heater 12,000 Staff Lounge Upgrades 7,000 Recption Area Remodeling 15,000 Garage Door & Opener Replacements 15,000 VH/PW Masonry Sealing 25,000 3 ITS No. 1 Lighting improvements 7,500 FS No. 1 Shower Improvements 14,000 -14 Village of Oak Brook 2009-2013 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2008 2008 Budget Estimate 2009 2010 2011 2012 2013 Municipal Complex (continued'): Server Room Auxiliary Cooling System 25,000 Door Security System 50,000 Ductwork Cleaning 10,000 10,000 10,000 10,000 Ceiling Tile & Light Fixture Replacement 50,000 Recoat North Walkway 6,000 Roof-top HVAC Screening - 56,000 Ground HVAC Screening/Relocation 260,000 HVAC Improvements 50,000 East Side Entrance Improvements 150,000 100,000 Fite Station Humidifier 30,000 Fire Station #2: RPZ Installation 14,000 14,000 Plumbing Improvements 12,000 FS No. 2 Ductwork Cleaning 6,000 6,500 Bathrooms & Bunkroom Remodeling 89,000 Space Needs Study 20,000 Exterior Lighting Improvements 6,000 Landscaping Impruvements 5,000 HVAC System Replacement 40,000 Carpeting Replacement 14,000 Apparatus Bay Heating 25,000 Public Works Building: Replace Leaf Boxes 9,400 9,100 Retaining Wall Improvements 12,000 9,885 RPZ Installation 14,000 14,000 Roof Replacement & HVAC Screening 306,000 PW Office Lighting Fixtures and Ceiling Replacement 16,000' PW Kitchenette Remodeling 10,000 PW Replace Office HVAC Unit 30,000 PW Locker Room Renovation 60,000 PW Recondition/Reseal Garage Floor 70,000 Village of Oak Brook 2009-2013 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2008 2008 Budget Estimate 2009 2010 2011 2012 2013 Other Improvements: Old Butler School Library Exterior Sun Screeen Refurbish Exterior Wood Paneling HVAC Screening/Catwalk Server Room Cooling Unit Landscaping Reconfiguration Project Computer Equipment Window Shades Outdoor Walkway Lights Patron Copier Staff Copier Self -Check Machine Microfilm Reader/Printer Office Painting Carpeting Replacement Re-uphalster Public Area Furniture Police Radio System Upgrades Range Equipment Upgrade Large Volume Copier Purchase 700 mhz Radios Move all Communications to 700 or 800 mhz (FCC Mandate) 28,500 83,400 12,000 5,000 8,750 22,920 30,000 30,000 25,000 100,000 60,000 13,500 5,000 5,000 8,750 12,355 15,000 2,000 16,000 16,000 33,000 --167 25,000 40,000 14,000 15,000 12,000 51,000 20,000 12,000 21,585 10,000 10,000 120,000 50,000 25,000 Village of Oak Brook 2009-2013 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2008 2008 Bud et Estimate 2009 2010 2011 2012 2013 Fire Fire Extinguisher Training Kit Mobile Radio Replacement Extraction Pulse CO Monitors Command Car Equipment Mobile Computer Equipment Replace "Freddie the Fire Truck" Multi Gas Detectors Gas Monitors Thermal Imaging Cameras Mattress Replacement Zetron Alerting System Breathing Apparatus Replacement Upgrade Communications to 700mhz (FCC Mandate) Total. General Corporate Fund Maximum Budget Amount 5,000 0 8,000 0 12,000 31,000 29,705 7,000 10,000 0 10,000 .0 10,000 10,000 10,000 7,000 18,000 75,000 786,320 447,390 505,500 1,207,115 1,050,950 786,320 447,390 505,500 700,000 700,000 14,000 165,000 198,400 578,615 374,265 700,000 700,000 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN I�1]IN -MR 1"Y"IMy.S.W111►�7 DESCRIPTION: This fund is used to account for funds collected from imposition of the Village's Hotel/Motel Tax. State law requires that for non -home rule communities this revenue must be devoted to programs and activities designed to increase overnight stays in hotels located within the Village. For 2006 and prior, most expenditures of funds from the tax were those recommended by the Hotel, Convention and Visitors Committee and specifically approval of the Village Board. Late in 2006, the Village Board established a Hotel Beautification District designed to improve and maintain the landscape and hardscape features in the areas served by the hotels also in order to increase overnight stays in hotels located within the Village. Village Board policy at the present time earmarks 1% of the 3% Hotel/Motel Tax rate to funding activities of the Hotel, Convention and Visitors Committee, the remaining 2% of the 3% rate is dedicated to funding the Hotel Beautification District initiatives. OVERVIEW: Revenue: For 2008, revenues from the 3% Hotel/Motel Tax are projected to be $1,230,000, which is equal to the 2008 Budget amount. For 2009 and thereafter, revenue is projected to increase 3% per year. Operations: For 2008, the projections reflect expenditures for marketing efforts of the Hotel, Convention and Visitors Committee of $325,000 as well as payment to the DuPage Convention and Visitors Bureau equal to 20% of the first 1% of the Hotel Tax imposed. Thereafter, expenditures increase approximately 3% per year. Exceptional Charges: The Plan reflects an annual transfer to the General Corporate Fund for administrative and marketing services rendered to the fund and to the Hotel, Convention and Visitors Committee. VILLAGE OF OAK BROOK 2.009-2013 FIVE-YEAR FINANCIAL PLAN Capital Improvement Program The 2009 Budget includes $1.8 million for street lighting and other beautification improvements in the Hotel Beautification District. Thereafter, outlays of $800,000 annually for improvements and maintenance in the Hotel Beautification District are included. FUTURE CONSIDERATIONS: Should the Village be granted home -rule authority by referendum, the rate of tax imposed could be increased from the current 36/o to 5% and there would no longer be a restriction as to use. Any additional funds generated from this tax would be available to fund general government operations. Unrestricted Cash Available, January 1, 2008 Estimated Income Tess Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available bunds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $1,018,647 Village of Oak Brook 2009-2013 Five -Year Financial Plan HOTELIMOTEL TAX FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $1,250,000 $1,257,000 $1,270,000 $1,310,599 $1,350,837 $1,392,780 $1,436,490 458,600 397,300 484,000 432,600 445,578 458,945 472,714 12,000 12,000 12,400 12,800 13,200 13,600 14,000 779,400 847,700 773,600 865,199 892,059 920,235 949,776 1,018,647 1,018,647 1,666,347 639,947 705,146 797,205 917,440 1,798,047 1,866,347 2,439,947 _ 1,505,146 1,597,205 1,717,440 1,867,216 0 0 0 0 0 0 0 ti 0 0 0 0 0 0 0 1,798,047 1,866,347 2,439,947 1,505,146 1,597,205 1,717,440 1,867,216 1,250,000 200,000 1,800,000 800,000 800,000 800,000 800,000 $548,047 $1,666,347 $639,947 $705,146 $797,205 $917,440 $1,067,216 -20- Village of Oak Brook 2009-2013 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Revenue Projections 2008 budget 2008 Estimate 2009 2010 2011 2012 2013 Hotel/Matel Talc $1,230,000 $1,230,000 $1,260,000 $1,297,800 $1,336,734 $1,376,836 $1,418,141 Interest 20,000 27,000 10,000 12,799 14,103 15,944 18,349 Total Revenue $1,250,000 $1,257,000 $1,270,000 $1,310,599 $1,350,937 $1,392,780 $1,436,490 -21- Village of Oak Brook 2009-2013 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Long -Range Operating Budget -22_ 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 . operations and Contractual $458,600 $397,300 $484,000 $432,600 $445,578 $458,945 $472,714 Total Operating Budget $458,600 $397,300 $484,000 $432,600 $445,578 $458,945 $472,714 Exceptional Charges i Transfer to General Fund $12,000 $12,000 $12,400 $12,800 $13,200 $13,600 $14,000 Total Exceptional Charges i $12,000 $12,000 $12,400 $12,800 $13,200 $13,600 $14,000 Capital Improvement Program Hotel Beautification District Improvements 1,250,000 200,000 1,800,000 800,000 800,000 800,000 800,000 Total Budget $1,720,600 $609,300 $2,296,400 $1,245,400 $1,258,778 $1,272,545 $1,286,714 -22_ a VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN MOTOR FUEL TAX FUND DESCRIPTION: The Motor Fuel Tax {MFT} Fund is used to account for funds distributed to' the Village by. the State of Illinois pursuant to the MFT distribution formula. State law limits the use of these funds for specified purposes. This edition of the Five -Year Financial Plan continues the practice of periodically allocating MFT funds to eligible street resurfacing and reconstruction projects. OVERVIEW: Revenue: The Motor Fuel Tax is levied on a cents -per -gallon basis and is deposited into a. segregated fund at the State level. From there, funds are distributed to local governments on a per -capita basis, according to a formula and based on the last certified census. Revenues for 2008 are projected to be $24,000 or 9.4% below budget due to reduced fuel consumption caused by record high gasoline prices. It is not projected that fuel sales statewide will increase significantly over the planning period from the 2008 estimated amount. Exceptional Chargees: There are no MFT road projects budgeted for 2009. Thereafter, a transfer to the Infrastructure Fund of $600,000 in 2011 and $400,000 in 2013 is included in order to supplement the paving program in those years. —23— Unrestricted Cash Available, January 1, 2008 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $136,357 Village of Oak Brook 2009-2013 Five -Year Financial Plan MOTOR FUEL TAX FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 0 0 0 0 600,000 0 400,000 $269,000 $235,800 $233,000 $242,103 $246,945 $239,884 $244,682 0 0 0 0 0 0 0 0 0 0 0 600,000 0 400,000 269,000 235,800 233,000 242,103 (353,055) 239,884 (155,318) 136,357 136,357 372,157 605,157 847,260 494,205 734,089 405,357 372,I57 605,157 847,260 494,205 734,089 578,771 0 0 0 0 0 0 0 0 0 0 0 0 0 0 405,357 372,157 605,157 847,260 494,205 734,089 578,771 0 0 0 0 0 D 0 $405,357 $372,157 $605,157 $847,260 $494,205 $734,089 $578,771 -24- Vlllage of Oak Brook 20092013 Five -Year Financial Plan MOTOR FUEL TAX FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012, 2013 Motor Fuel Tax Allotments $254,000 $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 Interest 15,000 5,800 3,000 12,103 16,945 9,884 14,682 Total Revenue $269,000 $235,800 $233,000 $242,103 $246,945 $239,884 $244,682 -26- Exceptional Charges Transfer to Infrastructure Fund Total Exceptional Charges Village of Oak Brook 2009-2013 Flee -Year Financial Plan MOTOR FUEL TAX FUND Long -Range Operating Budget 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $0 $0 $0 $0 $600,000 $0 $400,000 $0 $0 $0 $0 $600,000 $0 $400,000 a -26- VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN FOREIGN FIRE INSURANCE TAX FUND DESCRIPTION: This fund is used to account for funds collected from imposition of the 2% tax on fire insurance policies written in the Village by insurance companies not incorporated in the State of Illinois. By law, expenditures from the Fund must be for the maintenance, use and benefit of the Fire Department. Pursuant to State law, expenditures are directed by a Foreign Fire Insurance Tax Board elected by the members of the Fire Department. The accounting for this Fund is no longer under the jurisdiction of the Village and in May, 2003 the entire treasury function was turned over to the Treasurer of the Foreign Fire Insurance Tax Board. OVERVIEW: Revenue: Revenue is projected to remain at the estimated level of $55,850 for 2008 and each year thereafter. Operations: Operating expenditures are programmed for uses as determined by the Foreign Fire Insurance Tax Board. —27— Village of Oak Brook 2009-2013 Five -Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Summary -28- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Unrestricted Cash Available, January 1, 2008 $119,547 Estimated Income $37,860 $55,850 $55,850 $55,850 $55,850 $55,850 $55,850 Less Estimated Operating Expenses Operating Budget 34,300 28,455 26,500 26,500 26,500 26,500 26,500 Exceptional Charges 0 0 0 0 0 0 0 Estimated Net Operating Income 3,560 27,395 29,350 29,350 29,350 29,350 29,350 Add Beginning of Year Cash Balance 119,547 119,547 140,262 149,612 153,962 158,312 162,662 Estimated Available Funds 123,107 146,942 169,612 178,962 183,312 187,662 192,012 Interfund Loan 0 0 0 0 0 0 0 Interfund Loan Repayment 0 0 0 0 0 .0 0 Adjusted Cash Available 123,107 146,942 169,612 178,962 183,312 187,662 192,012 Less Capital Improvement Program 10,000 6,680 20,000 25,000 25,000 25,000 25,000 Estimated Unrestricted Cash Balance at Year -End $113,107 $140,262 $149,612 $153,962 $158,312 $162,662 $167,012 -28- -29- Village of Oak Brook 2009-2013 Five -Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Foreign Fire Insurance Tax $37,360 $55,350 $55,350 $55,350 $55,350 $55,350 $55,350 Interest 500 500 500 500 500 500 500 Total Revenue $37,860 $55,850 $55,850 $55,850 $55,850 $55,850. $55,850 -29- Personnel Materials and Supplies Operation & Contractual Total Operating Budget Capital Improvement Program Station Enhancements Undesignated Capital Total Capital Improvement Program Total Budget FOREIGN FIRE INSURANCE TAX FUND Long -Range Operating Budget 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $4,300 $1,800. $3,500 $3,500 $3,500. $3,500 $3,500 26,700 23,380 19,500 19,500 19,500 19,500 19,500 3,300 3,275 3,500 3,500 3,500 3,500 3,500 $34,300 $28,455 $26,500 $26,500 $26,500 $26,500 $26,500 10,000 6,680 20,000 25,000 25,000 25,000 25,000 $10,000 $6,680 $20,000 $25,000 $25,000 $25,000 $25,000 $44,300 $35,135 $46,500 $51,500 $51,500 $51,500 $51,500 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN INFRASTRUCTURE FUND DESCRIPTION: The Infrastructure Fund was established to separately account for revenues and expenditures related to certain categories of capital projects including street resurfacing/reconstruction, safety pathways and drainage projects. Due to statutory restrictions on use, beginning in 2005 the Village's non -home rule sales tax of 0.25% (authorized by referendum in 2004) became the major source of funding for this Fund. In April, 2007 a second referendum was passed and the rate of tax increased to 0.50% effective January 1, 2008 (collections begin in April, 2008). Periodic transfers from the Motor Fuel Tax Fund have been made in order to supplement the roadway maintenance program. In 2005 and after, most operating costs of the Public Works and Engineering Departments have been shifted to this fund. OVERVIEW: Revenue from the Village's Non -Home Rule Sales Tax is projected at $4,325,000 for 2008, which is $400,000 below the 2008 Budget amount. For 2009 the budget is $5,125,000 due to an increase of 0% in the sales tax base as well as a full year of collections for the rate increase that was effective January 1, 2008. As is the case with the General Sales Tax, 20% of the incremental Non -Horne Rule Sales Taxes generated by this development are required to be transferred to the Promenade Special Tax Allocation Fund. Thereafter, base revenue in projected to grow approximately 3% per year for 2010-2011 and 4% in 2012-2013 (See GENERAr. ASSUMPTIONS). Transfers from the Motor Fuel Tax Fund are reflected in 2011 and 2013 in order to supplement the roadway maintenance program. Revenue from grants that have been secured for bikeway projects is also reflected. Transfers from the Water Fund and General Corporate Fund are reflected in order to allocate costs (mostly administrative) that are funded by the Infrastructure Fund that relate to activities in these funds. Operations: The 2009 Budget includes a change from Village personnel staffing of the proposed new Geographic Information Systems (G.I.S.) program to outsourcing using a local government consortium. The 2009 Budget also includes a significant increase in the price of de-icer salt due to the recent bid award. There are no other significant changes beyond application of the inflation assumptions. Capital lm rovements: Outlays totaling $7.0 million are budgeted in 2009-2013 in order to fund the majority of costs associated with the Village's financial obligation to fund 113 of the cost of the I -88122nd Street Bridge Project (outlays are also included in the Water Fund and Hotel/Motel Tax Fund). Expenditures related to roadway improvements are included based on the 2009-2018 Roadway Maintenance Plan. In 2010, $1.5 million is included for Village requested improvements on West 22ad Street as part of the State widening project. Beginning in 2011 and thereafter, $1 million is budgeted annually in order to set aside funds for infrastructure -related expenditures that may be required as a result of the Commercial Corridor Revitalization Project. . -31- Village of Oak Brook 2009-2013 Fire -Year Financial Plan INFRASTRUCTURE FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 Unrestricted Cash Available, January 1, 2008 $1,424,502 2013 Estimated Income $5,194,990 $4,772,425 $5,578,345 $5,695,435 $6,460,622 $6,072,568 $6,747,568 Less Estimated Operating Expenses Operating Budget 2,428,960 2,301,500 2,572,560 2,501,981 2,568,037 2,656,714 2,727,807 Exceptional Charges 186,695 173,695 175,095 180,080 191,280 197,880 198,680 Estimated Net Operating Income 2,579,335 2,297,230 2,830,690 3,013,374 3,701,305 3,217,974 3,821,080 Add Beginning of Year Cash Balance 1,424,502 1,424,502 3,531,232 2,781,742 1,791,116 1,888,421 138,395 Estimated Available Funds 4,003,837 3,721,732 6,361,922 5,795,116 5,492,421 5,106,395 3,959,476 Residual Equity Transfer To General Fund 0 . 0 0 0 0 0 0 Adjusted Cash Available 4,003,837 3,721,732 6,361,922 5,795,116 5,492,421 5,106,395 3,959,476 Less Capital improvement Program 2,788,000 190,500 3,580,180 4,004,000 3,604,000 4,968,000 3,880,000 Estimated Unrestricted Cash Balance at Year -End $1,215,837 $3,531,232 $2,781,742 $1,791,116 $1,888,421 $138,395 $79,476 -32- Non -Home Rule Sales Tax Grants Interest Transfer From Motor Fuel Tax Fund Transfers From Other Funds Miscellaneous Total Revenue Village of Oak Brook 2009.2013 Five -Year Financial Plan INFRASTRUCTURE FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $4,725,000. $4,325,000 $5,125,000 $5,275,000 $5,450,000 $5,650,000 $5,950,000 66,590 44,025 56,545 0 0 0 0 40,000 40,000 42,000 55,635 35,822 37,768 2,768 0 0 0 600,000 0 400,000 363,400 363,400 354,800 364,800 374,800 384,800 394,800 0 0 0 0 0 0 0 $5,194,990 $4,772,425 $5,578,345 $5,695,435 $6,460,622 $6,072,568 $6,747,568 .-33- Personnel Materials and Supplies Operations and Contractual Total Operating Budget Adjustment for Budget Goal Attainment Exceptional Charges Vehicle Replacement Charges Transfer to Promenade T.I.F. Fund Total Exceptional Charges Capital Improvement Program ,(See Schedule) Total Budget 154,695 Village of Oak Brook 148,395 152,580 162,980 168,780 168,780 2009-2013 Five -Year Financial Plan 19,000 26,700 27,500 28,300 29,100 INFRASTRUCTURE FUND 186,695 173,695 175,095 180,080 191,280 Long -Range Operating Budget 198,680 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $1,715,605 $1,684,575 $1,617,450 $1,709,243 $1,783,785 $1,883,894 $1,967,169 133,360 115,615 224,715 230,333 236,091 241,993 248,043 579,995 501,310 730,395 666,655 683,321 700,404 717,914 2,428,960 2,301,500 2,572,560 2,606,230 2,703,197 2,826,292 2,933,126 2,572,560 2,501,981 2,568,037 2,656,714 2,727,807 154,695 154,695 148,395 152,580 162,980 168,780 168,780 32,000 19,000 26,700 27,500 28,300 29,100 29,900 186,695 173,695 175,095 180,080 191,280 197,880 198,680 2,788,000 190,500 3,580,180 4,004,000 3,604,000 4,968,000 3,880,000 $5,403,655 $2,665,695 $6,327,835 $6,686,061 $6,363,317 $7,822,594 $6,806,487 -34- Roadway Improvements Street Resurfacing/Reconstruction I -88122nd Street Bridge Project Commercial Corridor Revitalization Jorie Boulevard LAPP Project North York Road Feasibility Study West 22nd Street Beautification/Infrastructure Street Cracksealing Street Micro Surfacing Stormwater Management Improvements Drainage Improvements Salt Creek Flood Plain Modeling Safety Pathway Improvements Regional Trail ]orie/Ginger Creek Trail 31st Street/Rt. 83 Pathway Project 35th St. Path (St. Stephens -St. Paschal) IDOT Butterfield/Midwest Rd Sidewalk IDOT Butterfield/Rt 83 Sidewalk Public Works Capital Traffic Signal Controllers Salt Dome Repairs Street Lighting Inspection Survey Engineering Department Print Machine Replacement GIS Equipment Total 2010 2011 2012 2013 $649,000 $1,195,000 $2,394,000 $1,328,000 1,200,000 1,200,000 1,200,000 1,200,000 1,000,000 1,000,000 1,000,000 521,000 1,500,000 .0 0 0 83,000 89,000 110,000 146,000 69,000 213,000 51,000 35,580 110,500 51,000 50,000 0 2,000 0 30,000 10,000 0 500 0 500 35,000 14,500 0 15,000 10,000 5,000 10,000 10,000 51,000 51,000 51,000 155,000 10,000 0 10,000 20,000 271080 7,180 $2,788,000 $190,500 $3,580,180 $4,004,000 $3,604,000 $4,968,000 $3,880,000 _35_ Village of Oak Brook 2009-2013 Five -Year Financial Plan INFRASTRUCTURE FUND Capital Improvement Program 2008 Budget 2008 Estimate 2009 $82,000 $45,040 $780,900 2,500,000 0 2,200,000 30,000 29,630 3,000 50,000 43,170 5,000 48,100 52,000 226,000 2010 2011 2012 2013 $649,000 $1,195,000 $2,394,000 $1,328,000 1,200,000 1,200,000 1,200,000 1,200,000 1,000,000 1,000,000 1,000,000 521,000 1,500,000 .0 0 0 83,000 89,000 110,000 146,000 69,000 213,000 51,000 35,580 110,500 51,000 50,000 0 2,000 0 30,000 10,000 0 500 0 500 35,000 14,500 0 15,000 10,000 5,000 10,000 10,000 51,000 51,000 51,000 155,000 10,000 0 10,000 20,000 271080 7,180 $2,788,000 $190,500 $3,580,180 $4,004,000 $3,604,000 $4,968,000 $3,880,000 _35_ VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCYAL PLAN PROMENDADE SPECIAL TAX ALLOCATION FUND DESCRIPTION: The Promenade Special Tax Allocation Fund was established in 2006 as a result of a redevelopment agreement approved by the Village Board that provides for Tax Increment Financing (T.I.F.) for certain infrastructure improvements for the Promenade Development. As provided for in the redevelopment agreement, the Village has issued a limited obligation note of $4.25 million bearing interest at 8%. The note is secured by 100% of the incremental real estate taxes and 20% of the incremental sales taxes generated by the Promenade Development. The note is not a general obligation of the Village and the Village's liability is limited to the pledge of incremental revenues previously noted for a period not to exceed 15 years. hi OVERVIEW: Revenue Revenues from the incremental real estate tax revenue generated by the development are projected based on a minor increase from the 2008 estimated amounts. For 2010 and thereafter, real estate tax revenues are projected.based on estimates provided by the developer. Transfers from the General Fund and Infrastructure Fund are included based on 20% of the expected General Sales Tax and Non -Home Rule Sales Tax expected to be generated from the development. Exceptional Charges Exceptional charges consist of debt service on the $4.25 million limited obligation notes that were issued in early 2008. The notes provide that in November each year the Village is to notify the holders of the notes as to the amount funds expected to be on hand to fund debt service for the subsequent year. Based on the amounts projected to be available for the succeed year debt service payments are to scheduled to be applied to (1) interest on past due interest, (2) current interest, and (3) repayment of principal. For 2009 it is projected that only interest payments will be made as there does not appear to be sufficient funds on hand to begin repayment of principal. -36-- Village of Oak Brook 2009-2013 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Summary -37- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Unrestricted Cash Available, January 1, 2008 $17,407 Estimated Income - $114,000 $272,780 $280,600 $335,591 $345,037 $354,897 $365,185 Less Estimated Operating Expenses Operating Budget 0 0 0 0 0 0 0 Exceptional Charges 15,300 152,935 278,300 378,300 378,300 378,300 378,300 Estimated Net Operating Income 98,700 119,845 2,300 (42,709) (33,263) (23,403) (13,115) Add Beginning of Year Cash Balance 17,407 17,407 137,252 139,552 96,843 63,580 40,176 Estimated Available Funds 116,107 137,252 139,552 96,843 63,580 40,176 27,062 Interfund Loan 0 0 0 0 0 0 0 Interfund Loan Repayment 0 0 0 0 0 0 0 Adjusted Cash Available 116,107 137,252 139,552 96,843 63,580 40,176 27,062 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Unrestricted Cash Balance at Year -End $116,107 $137,252 $139,552 $96,843 $63,580 $40,176 $27,062 -37- Village of Oak Brook 2009-2013 Fire -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (1r.I.F.) FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Real Estate Taxes $0 $187,980 $200,000 $250,000 $257,500 $265,225 $273,182 Sales Tax Transfer From Other Funds 112,000 84,100 80,000 82,800 85,600 88,400 91,200 Interest 2,000 700 600 2,791 1,937 1,272 804 Total Revenue $114,000 $272,780 $280,600 $335,591 $345,037 $354,897 $365,185 Operations and Contractual Total Operating Budget Exceptional Charges Debt Service Total Exceptional Charges Village of Oak Brook 2009-2013 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.LF.) FUND Lang -Range Operating Budget 2008 Budget 2008 Estimate 2009 2010 $15,300 $2,935 $3,300 $3,300 15,300 2,935 3,300 3,300 2011. 2012 2013 $3,300 $3,300 $3,300 3,300 3,300 3,300 0 150,000 275,000 375,000 375,000 375,000 375,000 $15,300 $152,935 $278,300 $378,300 $378,300 $378,300 $378,300 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN WATER FUND DESCRIPTION: The water utility is one of two large enterprises operated by the Village. It serves approximately 5,600 customers, 2,400 of which are located outside the corporate limits of Oak Brook, The Water Fund supports both operations and capital improvements to the water system. The Water Fund is considered an enterprise fund and is operated on a self-supporting basis. OVERVIEW: Revenue: Revenue from sale of water is based on an average of 1.232 billion gallons billed per year and usage is projected to be flat in order to mitigate aberrations due to weather. In 2005 the Village Board conducted a comprehensive rate study that resulted in increasing the water rate to $3.25 per 1,000 gallons. Due to a number of significant financial issues occurring since the 2005 study, staff updated the rate study in 2007 which resulted in the Village Board decreasing the water rate to $3.15 per 1,000 gallons, with annual 'increases of approximately 3% per year projected in order to fund expected long-term capital outlays due to the aging of the system (which are significant) as well as potential storage enhancements. In early 2008 we received notice from the Du Page Water Commission regarding the City of Chicago's plan to increase wholesale water rates to DWC by $0.20 in 2008, $0.23 in 2009, and $0.25 in 2010. The commission has already passed on the first of these increases to the Village and has indicated that they will be passing on the subsequent increases on May 1, 2009 and 2010. For 2009 staff is recommending a per 1,000 gallon rate of $3.45, which reflects the 3% increase included in the Village's updated 2007 rate study as well as passing on the first of the Chicago rate increases of $0.20. By continuing on with the rate making methodology of 3% increases in the base rate in addition to the Chicago increases yields a rate of $3.79 in 2010, $4.13 in 2011, $4.26 in 2012, and $4.39 in 2013. Operations: The target rate for water purchased from the Du Page Water Commission is expected to increase through 2010 as the City of Chicago increases the rates charged to the Du Page Water Commission. Thereafter, the cost of water purchased is expected to remain flat for the duration of the planning period. There are no other significant changes projected in the operating budgets of this fund, beyond application of the inflation assumptions. Capital Improvements: The capital improvement program reflects various improvements to the distribution system, potential increases in water storage capacity, continued maintenance of the Village's wells in order to have them available for emergency service, and ongoing maintenance of storage and pumping facilities (including significant outlays for pump replacement). —40— Village of Oak Brook 2009-2013 rive -Year Financial Plan WATER FUND Summary 2008 Budget 2008 Estimate 2009 2010 Unrestricted Cash Available, January 1, 2008 $6,160,493 2011 2012 2013 Estimated Income $5,038,500 $4,902,395 $5,040,000 $5,356,410 $10,791,488 $5,882,080 $6,050,750 Less Estimated Operating Expenses Operating Budget I,385,810 1,I95,740 1,333,775 1,342,917 1,379,770 1,417,685 1,456,691 Exceptional Charges 2,296,430 2,171,485 2,723,955 3,083,288 3,218,170 3,231,170 3,650,170 Estimated Net Operating Income, 1,356,260 1,535,170 982,270 930,204 6,193,548 1,233,225 943,890 Add Beginning of Year Cash Balance 6,160,493 6,160,493 6,606,228 3,345,698 3,547,502 4,081,049 739,274 Estimated Available Funds 7,516,753 7,695,663 7,588,498 4,275,902 9,741,049 5,314,274 1,683;164 Less Capital Improvement Program 2,450,850 1,089,435 4,242,800 728,400 5,660,000 4,575,000 555,000 Estimated Unrestricted Cash Balance at Year -End $5,065,903 $6,606,228 $3,345,698 $3,547,502 $4,081,049 $739,274 $1,128,164 Village of Oak Brook 2009-2013 Five -Year Financial Plan WATER FUND Revenue Projections -42- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Water Sales $4,300,000 $4,080,000 $4,700,000 $5,106,080 $5,524,960 $5,685,120 $5,845,280 Unmetered Sales 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Connection Fees 65,000 50,000 60,000 60,000 60,000 60,000 60,000 Meter Fees 13,000 5,000 6,000 6,000 6,000 6,000 6,000 Special Services 25,500 26,300 27,000 27,810 28,644 29,504 30,389 Inspection Fees 0 2,000 2,000 2,000 2,000 2,000 2,000 Interest 200,000 . 130,000 160,000 69,520 (20,117) 14,456 22,082 Proceeds from Sale of Property 350,000 352,000 0 0 0 0 0 Bond Proceeds 0 0 0 5,105,000 0 0 Litigation Settlement 0 172,095 0 0 0 0 0 Miscellaneous 60,000 60,000 60,000 60,000 60,000 60,000 60,000 Total Revenue $5,038,500 $4,902,395 $5,040,000 $5,356,410 $10,791,488 $5,882,080 $6,050,750 -42- Personnel Materials and Supplies ` Operations and Contractual Total Operating Budget Adjustment for Budget Goal Attainment Exceptional Charges DWC Fixed and O & M Charges Transfer To General Corporate Fund Transfer To Infrastructure Fund Vehicle Replacement Charges Debt Service Total Exceptional Charges Capital Improvement Program (See Schedule) Total Budget 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $713,120 $690,210 $693,265 $727,928 $764,325 $802,541 $842,668 90,305 82,370 89,755 91,999 94,299 96,656 99,073 582,385 423,160 550,755 564,524 578,637 593,103 607,930 $1,385,810 $1,195,740 $1,333,775 $1,384,451 $1,437,260 $1,492,300 $1,549,671 $2,296,430 $2,171,485 $1,333,775 $1,342,917 $1,379,770 $1,417,685 $1,456,691 $1,816,920 $1,691,975 $2,239,000 $2,585,333 $2,702,000 $2,702,000 $2,702,000 249,000 249,000 260,000 268,000 276,000 284,000 292,000 180,000 .180,000 174,000 179,000 185,000 190,000 196,000 50,510 50,510 50,955 50,955 55,170 55,170 55,170 $2,840,710 405,000 $2,296,430 $2,171,485 $2,723,955 $3,083,288 $3,218,170 $3,231,170 $3,650,170 $2,450,850 $1,089,435 $4,242,800 $728,400 $5,660;000 $4,575,000 $555,000 $6,133,090 $4,456,660 $8,300,530 $5,154,606 $10,257,940 $9,223,855 $5,661,861 -43- Distribution Improvements: Undesignated/Miscellaneous Midwest Road Westdale Gardens Woodside Drive Butterfield Road 1-88/Rt. 83 I -88122nd Street I -88122nd Street Salt Creek Crossing West 22nd Street 35th Street East of Meyers I-294 Toll Plaza Sheffield Lane Adams/Madison/Glendale Well Maintenance: Well #5 (Windsor Drive) Well #6 (31st & Meyers) Well #7 (Midwest Rd. & I-88) Storage and Pumps: Water Meter Replacement SCADA System Improvements Water System Security Elevated Tank Painting 2 New Elevated Tanks Trenching/Shoring Equipment Water System Computer Modeling Reservior AB Pumps & Motors Reservoir B Inspection Reservoir B Pump & Motor Replacement Computer System Upgrade GIS Water system Implementation Water System Evaluation Reservoir B Building Improvements New Ground Storage Tank Total Capital Improvement Program Village of Oak Brook 2009-2013 Five -Year Financial Plan WATER FUND Capital Improvement Program 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 10,000 1,000 10,000 10,000 510,000 510,000 510,000 - 311,000 365,900 53,000 30,000 142,000 100,000 120,000 50,000 64,000 64,000 242,000 272,000 555,000 5001000 25,000 655,000 36,500 1,895,000 500,000 183,000 158,000 0 250,000 70,000 70,000 70,000 70,000 15,000 71,000 44,800 24,450 44,800 45,000 45,000 45,000 45,000 30,000 30,000 80,000 25,000 25,000 6,185 4,020,000 8,000 46,800 400 5,000 20,000 20,000 18,000 20,000 56,250 435,000 40,000 40,000 10,000 10,000 25,000 25,000 408,400 5,105,000 $2,450,850 $1,089,435 $4,242,800 $728,400 $5,660,000 $4,575,000 $555,000 -44- VILLAGE OF OAK BROOK - 2009-2013 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND DESCRIPTION: The Oak Brook Sports Core is the other large enterprise operated by the Village. The Sports Core Fund supports the entire operation including uses of the Sports Core's fields and forest areas, the Oak Brook Golf Club, the Oak Brook Bath and Tennis Club (all available for use by the general public) and food and beverage services at the various Sports Core venues. It is considered an enterprise fund since the majority of its revenues are derived from user fees. In order to make clear the specific designation of certain resources, the Sports Core Fund is broken down into three segments: Sports Core Operations, the Golf Surcharge Account and the Capital Improvement Account. The Sports Core Fund - Consolidated presentation brings all of the parts together. OVERVIEW: For many years it has been the goal of the Village to operate the Sports Core on a self-sufficient basis; that is, it should be 100% supported by user fees. Based on projections contained in this document, revenues are expected to cover all costs of the Sports Core Fund (including debt service) for each year of the Five -Year Financial Plan. FUTURE CONSIDERATIONS: Although the future projections are encouraging, favorable operating results of the Sports Core Fund are largely dependent on favorable weather, annual increases in user fee revenue, and increased activity in the Food & Beverage operation. Capital improvements completed over the past several years were planned with a view toward making more favorable operating results possible on an annual basis. —45— Cash Available, January 1, 2008 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfimd Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Cash Balance at Year -End Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $296,444 $4,051,710 $3,740,785 $4,017,775 $4,129,305 $4,256,830 $4,387,594 $4,497,819 3,694,080 3,630,425 3,611,500 3,763,993 3,869,481 3,978,056 4,089,815 219,820 219,820 217,730 110,100 107,100 129,000 0 137,810 (109,460) 188,545 255,212 280,249 280,538 408,004 296,444 296,444 9,164 86,709 220,421 350,670 396,208 434,254 186,984 197,709 341,921 500,670 631,208 804,212 0 0 0 0 0 0 0 0 0 0 0 0 (150,000) (150,000) 434,254 186,984 197,709 341,921 500,670 481,208 654,212 280,000 177,820 111,000 121,500 150,000 85,000 47,000 $154,254 $9,164 $86,709. $220,421 $350,670 $396,208 $607,212 -46- Sports Core Operations Golf Surcharge Total -47- Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $3,978,960 $3,673,585 $3,931,275 $4,057,905 $4,185,330 $4,316,094 $4,426,319 72,750 67,200 86,500 71,500 71,500 71,500 71,500 $4,051,710 $3,740,785 $4,017,775_ $4,129,305 $4,256,830 $4,387,594 $4,497,819 -47- Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Long -Range Operating Budget -48- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Personnel $2,049,495 $1,989,595 $1,958,765 $2,015,767 $2,074,539 $2,135,141 $2,197,633 Materials and Supplies 916,280 863,620 914,590 939,507 965,109 991,414 1,018,442 Operations and Contractual 728,305 777,210 738,145 808,719 829,833 851,502 873,740 Total $3,694,080 $3,630,425 $3,611,500 $3,763,993 $3,869,481 $3,978,056 $4,089,815 Exceptional Charges Irrigation System Debt Service 104,620 104,620 104,930 0 0 0 0 B&T Clubhouse Addition Debt Service 115,200 115,200 112,800 110,100 107,100 129,000 0 Total $219,820 $219,820 $217,730 $110,100 $107,100 $129,000 $0 Capital Improvement Program Sports Core Operations 192,000 134,420 111,000 101,500 90,000 85,000 47,000 Golf Surcharge 88,000 43,400 0 20,000 60,000 0 0 Total $280,000 $177,820 $111,000 $121,500 $150,000 $85,000 $47,000 Total Budget $4,193,900 $4,028,065 $3,940,230 $3,995,593 $4,126,5,81 $4,192,056 $4,136,815 -48- SPORTS CORE FUND Operations DESCRIPTION: The Sports Core Fund Operations presentation combines the operating projections for the Golf Club, Bath and Tennis Club, Sports Core Food and Beverage operations, and open fields operations. It also includes capital expenditures for equipment and similar purposes not assigned to the Golf Surcharge Account. ' OVERVIEW: Revenue: The total number of Golf Club members is projected at 231 throughout the planning period. Unlimited and Corporate membership fees are projected to increase $50 in -each year, junior and senior membership fees increase $25 per year, and daily greens fees increase $.50 to $1.00 per round per year. Other revenues are adjusted consistent with market factors. Membership revenue for the Bath & Tennis Club is budgeted to increase from 2008 actual amounts due to projected increases in membership rates of $50 per membership category, elimination of the "early bird" discount program, an increase in the number of members of 3%, and re- instituting the $50 annual fee for resident social memberships. In 2010 and thereafter, a 3% increase in the number of members is included as well as a $25 annual increase in rates for all membership categories. Food & beverage revenues are projected on the basis of 159 total events for 2008, which is a significant decrease in the number of events from 2008. This decrease is due to a reduction in the number of member and civic events due to implementation of a food and beverage minimum policy designed to eliminate a' number of unprofitable events. Thereafter, a gradual increase in pricing, the number of events, and total attendance is projected, resulting in a total of 172 events in 2013. The General Fund transfer of approximately $100,000 annually, which is designed to subsidize open fields, polo, and offset the staffing cost of community events, has been eliminated in 2009 and thereafter due to General Corporate Fund revenue issues. _49_ VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN Operations: The 2009 budget for the Sports Core reflects the reorganization of a number of program areas. The most significant change is that the Golf Club Manager has assumed the newly created Sports Core Director position and is now responsible for the -overall operations of the entire Sports Core. The Bath and Tennis Operations Manager has been re -titled Food & Beverage Manager and is now responsible for all three food & beverage operating programs. Food and Beverage operating expenses are projected to decrease due to planned reductions in the number of events that do not generate a. profit, particularly in the civic event categories. For 2009 and thereafter the Five -Year Financial Plan is based on complete outsourcing of the Polo program. The budget is reduced in 2009 due to the completion of lease payments on the cart fleet in 2008; the Village is expected to enter into a new lease in 2010. There are no other significant changes projected in the operating budgets of this fund, beyond application of the inflation assumptions and assumptions related to changes in the volume of business. While not having an effect on the 2009-2013 Five -Year Financial Plan, some mention regarding the 2008 operating results is necessary. Over the last several years we have made great strides with producing consistent break-even results for the entire Sports Core -the last time an interfund loan was required due to operating losses was in 2003. That being said, the September, 2008 flood event has had a major impact on the Sports Core in that the Village has had to absorb a number of unforeseen costs as well as experienced major revenue loss. On the Five - Year Financial Plan Summary page, you will note a transfer of $150,000 from the Golf Surcharge account that was approved by the Village Board on November 25, 2008 in order to partially offset revenue losses of the flood event. Projections now indicate that most of the cash balances in Sports Core Operations as well as the Golf Surcharge account will be nearly depleted by year end. Exceptional Charges: Exceptional charges include debt service on installment contract certificates issued to fund the expansion of the Bath & Tennis Clubhouse and 50% of the debt service on the golf irrigation system installment contract certificates (final payment is due in 2009). Capital Improvements: The capital improvement program in the Sports Core Fund Operations presentation reflects an ongoing program of maintaining existing equipment and facilities. Other improvements are reflected in the Golf Surcharge Account. -50-- Village of Oak Brook 2009-2013 live -Year Financial Plan SPORTS CORE FUND OPERATIONS Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Unrestricted Cash Available, January 1, 2008 $111,255 Estimated Income $3,978,960 $3,673,585 $3,931,275 $4,057,805 $4,185,330 $4,316,094 $4,426,319 Less Estimated Operating Expenses Operating Budget 3,694,080 3,630,425 3,611,500 3,763,993 3,869,481 3,978,056 4,089,815 Exceptional Charges 167,510 167,510 165,265 110,100 107,100 129,000 0 Estimated Net Operating Income 117,370 (124,350) 154,510 183,712 208,749 209,038 336,504 Add Beginning of Year Cash Balance 111,255 111,255 2,485 45,995 128,207 246,956 220,994 Estimated Available Funds 228,625 (13,095) 156,995 229,707 336,956 455,994 557,498 Transfer From Golf Surcharge -Flood 0 150,000 0 0 0 0 0 lnterfund Loan 0 0 0 0 0 (150,000) (150,000) Adjusted Cash Available 228,625 136,905 156,995 229,707 336,956 305,994 407,498 Less Capital Improvement Program 192,000 134,420 111,000 101,500 90,000 85,000 47,000 Estimated Unrestricted Cash Balance at Year -End 36,625 2,485 45,995 128,207 246,956 220,994 360,498 Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE HIND OPERATIONS Rennue Projections 2008 Budget 2008 Estimate 2009 2010 Bath & Tennis Club: General Administration Miscellaneous $3,000 Transfer From General Fund 57,500 Swimming 0 Membership Allocation 100,300 Swim Fees 25,300 Tennis 293,000 Tennis Associate Memberships 1,300 Membership Allocation 50,145 Tennis Lessons and Programs 37,600 Beverage & Pro Shop Revenue 2,200 Polo 53,100 Field Rental 7,500 Sponsorships, Memberships, & Admissions 32,800 Transfer From General Fund 60,400 Open Fields Field Rental 45,000 Transfer From General Fund 12,400 Total Bath & Tennis Club $435,445 Food & Beverage: Clubhouse Food & Beverage Social Memberships $1,200 B&T Membership Allocation 39,750 Wedding Food Sales 252,800 Beverage/Liquor Sales Weddings 136,000 Private Party Food Sales 184,000 Beverage/Liquor Sales -Private Parties 61,300 Member/Civic Event Fond Sales 99,000 $2,000 57,500 108,180 31,210 2,670 54,115 25,310 4,200 7,225 29,315 60,400 44,000 12,400 $438,565 $3,000 0 169,615 31,500 0 84,810 33,000 5,000 12,000 0 0 50,000 0 $388,925 $3,000 0 178,500 33,075 0 89,300 34,650 5,250 12,600 0 0 52,500 0 $408,875 2011 $3,000 0 188,100 34,729 0 94,100 3 6,3 83 5,513 13,230 0 0 2012 $3,000 0 198,000 36,465 0 99,000 38,202 5,788 13,892 0 0 $3,000 0 208,500 38,288 0 104,300 40,112 6,078 14,586 0 0 55,125 57,881 60,775 0 0 0 $430,179 $452,228 $475,639 $1,125 $2,000 $2,000 $2,000 39,750 0 0 0 242,000 259,000 279,000 293,000 108,600 116,500 125,000 132,000 155,000 212,000 230,000 249,000 37,250 53,100 57,500 62,000 102 500 31,500 33,100 35,000 $2,000 0 307,000 138,000 269,000 67,300 36,500 Y -62- . . . ...... . ..... 62............... $2,000 0 323,000 145,000 291,000 73,000 38,300 Beverage/liquor Sales-Member/Civic Events Food/Beverage Sales -Polo Catering Rental Income Miscellaneow Poolsiide Grill Food Sales BeveragefLiquor Sales Golf Club Lounge Food Sales Beverage/Liquor Sales Candy/Cigarette Sales Total Food & Beverage Golf Club: Memberships Golf Fees Merchandise Sales Driving Range Fees Cart Rental Fees Miscellaneous Transfer from General Fund Total Golf Club Total Sports Core Operatlons $303,625 Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS 1,109,150 Revenue Projections 2008 Budget 2008 Estimate 2009 16,100 11,400 3,500 11,000 11,370 11,600 4,100 3,700 4,100 25,000 32,000 25,000 59,650 83;265 84,300 36,000 40,855 41,000 15,000 15,900 15,900 116,000 120,000 136,000 178,000 170,000 19 8, 000 14,500 8,100 10,000 $1,249,400 $1,182,815 $1,203,500 $303,625 $290,650 $308,700 1,088,950 915,000 1,109,150 249,000 247,815 248,000 268,140 264,340 300,600 343,200 298,200 360,200 13,700 8,700 12,200 27,500 27,500 0 $2,294,115 $2,052,205 $2,338,850 $3,978,960 $3,673,585 $3,931,275 wMaa 2010 2011 2012 2013 3,700 3,900 4,100 4,300 12,180 12,789 13,428 14,100 4,305 4,520 4,746 4,984 25,000 25,000 25,000 25,000 84,300 84,300 84,300 84,300 43,050 45,203 47,463 49,836 16,695 17,530 18,406 19,327 142,800 149,940 157,437 165,309 207,900 218,295 229,210 240,670 10,500 11,025 11,576 12,155 $1,277,030 $1,345,502 $1,415,467 $1,492,280 $319,000 $328,000 $3318,000 $348,000 1,137,900 1,166,650 1,195,400 1,195,400 248,000 248,000 248,000 248,000 300,600 300,600 300,600 300,600 360,200 360,200 360,200 360,200 6,200 6,200. 6,200 6,200 0 0 0 0 $2,371,900 $2,409,650 $2,448,400 $2,458,400 $4,057,805 $4,185,330 $4,316,094 $4,426,319 Personnel Materials and Supplies Operations and Contractual Total Exceptional Charges Irrigation System Debt Service (50%) B&T Clubhouse Addition Debt Service Total Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 52,310 52,465 0 0 2009-2013 Five -Year Financial Plan 115,200 115,200 112,800 110,100 SPORTS CORE FUND OPERATIONS 129,000 0 $167,510 $167,510 $165,265 Long -Range Operating Budget $107,100 $129,000 $0 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $2,049,495 $1,989,595 $1,958,765 $2,015,767 $2,074,539 $2,135,141 $2,197,633 916,280 863,620 914,590 939,507 965,109 991,414 1,018,442 728,305 777,210 738,145 808,719 829,833 851,502 873,740 $3,694,080 $3,630,425 $3,611,500 $3,763,993 $3,869,481 $3,978,056 $4,089,815 52,310 52,310 52,465 0 0 0 0 115,200 115,200 112,800 110,100 107,100 129,000 0 $167,510 $167,510 $165,265 $110,100 $107,100 $129,000 $0 $192,000 $134,420 $111,000 $101,500 $90,000 $85,000 $47,000 $4,053,590 $3,932,355 $3,887,765 $3;975,543 $4,066,581 $4,192,056 $4,136,815 ---54- Bath & Tennis Club: Copier Replacement Computer Upgrade -50% Locker Room Improvements Tennis Improvements Coping Repair Awning Replacement (4) Food And Beverage: Clubhouse Improvements HVAC Improvements Roof & Gutter Repairs Dishwasher Replacement Convection Oven Replacement Golf Club; Tractors/Mowers Bunker Renovation HVAC improvements Computer Upgrade -50% Utility Vehicles Light Duty Vehicle Carpeting Replacement Cart Path Paving Extend Electric to Teaching Tee Bobcat Replacement Ball Machine Washer/Dispenser Grinding Machine Range Picker Bedknife Grinder Golf Car Ramp Replacement Fairway Cultivator 12,000 16,000 15,000 27,500 28,000 7,000 15,000 20,000 9,025 18,415 29,435 28,245 6,105 15,000 15,000 8,000 40,000 8,000 10,000 5,000 6,500 15,000 35,000 30,000 Total Capital hnprovement Program $192,000 $134,420 $111,000 $101,500 -55- 2012 2013 M000 10,000 7,000 40,000 75,000 20,000 20,000 40,000 $90,000 $85,000 $47,000 Village of Oak Brook Five Year Finanelal Plan Sports Core Fund Operations Capital Improvement Program 2008 Budget 2008 Estimate 2009 2010 2011 9,000 8,760 27,500 29,435 15,000 15,000 5,000 10,000 12,000 16,000 15,000 27,500 28,000 7,000 15,000 20,000 9,025 18,415 29,435 28,245 6,105 15,000 15,000 8,000 40,000 8,000 10,000 5,000 6,500 15,000 35,000 30,000 Total Capital hnprovement Program $192,000 $134,420 $111,000 $101,500 -55- 2012 2013 M000 10,000 7,000 40,000 75,000 20,000 20,000 40,000 $90,000 $85,000 $47,000 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Golf Surcharge Account DESCRIPTION: The Golf Surcharge Account is the repository for revenues received from the $1.50 per round surcharge levied on every round of golf played at the Oak Brook Golf Club. Surcharge revenues are reserved for golf course improvements and for restoration of flood damage to the course, should it be necessary in the future. OVERVIEW: Revenue: Revenue is projected based on the $1.50 surcharge applied to 45,000 rounds per year. Capital Improvements: Extraordinary costs associated with flood damage and a transfer of $150,000 to the Sports Core Operations Account to offset the revenue loss will deplete most the funds in this account in 2008, For 2009, Golf Surcharge funds are programmed for 50% of irrigation system debt service (final payment). Pond dredging and improvements to Hole #9 and the driving range are reflected in later years. 56. Village of Oak Brook 2009-2013 Five -Your Financial Plan SPORTS CORE FUND -GOLF SURCIURGE ACCOUNT Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Restricted Cash Available, January 1, 2008 $185,189 Estimated Income $72,750 $67,200 $86,500 $71,500 $71,500 $71,500 $71,500 Less Estimated Operating Expenses u Operating Budget 0 0 0 0 0 0 0 Exceptional Charges 52,310 52,310 52,465 0 0 0 , 0 Estimated Net Operating Income 20,440 14,890 34,035 71,500 71,500 71,500 71,500 Add Beginning of Year Cash Balance 185,189 185,189 6,679 40,714 92,214 103,714 175,214 Estimated Available bunds 205,629 200,079 40,714 112,214 163,714 175,214 246,714 Transfer to Sports Core Operations -blood 0 (150,000) 0 0 0 0 0 Adjusted Cash Available 205,629 50,079 40,714 112,214 163,714 175,214 246314 Less Capital Improvement Program 88,000 43,400, 0 20,000 60,000 0 0 Estimated Restricted Cash Balance at Year -End $117,629 $6,679 $40,714 $92,214 $103,714 $175,214 $246,714 Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Revenue Projections Account 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Golf &rcharge $69,750 $60,000 $67,500 $67,500 $67,500 $67,500 $67,500 Interest 3,000 7,200 4,000 4,000 4,000 4,000 4,000 Grants 0 0 15,000 0 0 0 0 Total Revenue $72,750 $67,200 $86,500 $71,500 $71,500 $71,500 $71,500 -68- -69- 2011 2012 2013 $0 $0 $0 60,000 $60,000 $0 $0 $60,000 $0 $0 Village of Oak Brook 2009-2013 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Long -Range Operating Budget 2008 Budget 2008 Estimate 2009 2010 Exceptional Charges Irrigation System Debt Service (50°/u) $52,310 $52,310 $52,465 $0 Capital hnprovement Program Hole # 4 &#5 Pond Bank Stabilization 88,000 Repair Flood Damage 43,400 20,000 Pond Dredging Hole 491Drivfilg Range Project Total 88,000 $43,400 $0 $20,000 Total Budget $140,310 $95,710 $52,465 $2.0,000 -69- 2011 2012 2013 $0 $0 $0 60,000 $60,000 $0 $0 $60,000 $0 $0 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN SELF-INSURANCE FUND DESCRIPTION: The Self -Insurance Fund is an internal service farad used for funding the Village's employee welfare benefit programs, including the self- insured medical and dental plans and group life and accidental death insurance coverage. These programs also are made available to employees of the Oak Brook Park District, retired Village employees and separated employees and their dependents pursuant to COBRA regulations. OVERVIEW: Revenue: Revenue comes principally from charges to other funds, through the budgets of departments where plan participants are employed, charges to the Oak Brook Park District, charges to retirees, and charges to COBRA participants. The Plan also reflects increased participant contribution to the cost of health and dental insurance for all covered Village employees. Revenue from equivalent premiums is projected to increase at a rate sufficient to fund projected expenses. Operations: Over the last three years, the amount expended for health insurance claims has moderated due primarily to a change in the third party administrator to Blue Cross/Blue Shield. On July 1, 2008 the Village began offering an HMO alternative to non-union employees - making this option available to union employees is subject to ongoing collective bargaining. For 2009, claims are projected based on various rates used to set equivalent premiums. For 2010 and beyond, a claims inflation factor of 6% per year has been used. Other expenses, including reinsurance costs, are also projected to increase 3% to S% annually, beginning in July 2009. FUTURE CONSIDERATIONS: Appropriate sharing of insurance costs will continue to be a major priority in future collective bargaining negotiations. -64- Unrestricted Cash Available, January 1, 2008 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $977,890 Village of Oak Brook 2009-2013 Five -Year Financial Plan SELF-INSURANCE FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $2,985,400 $2,821,800 $2,882,700 $3,054,000 $3,237,000 $3,429,000 $3,634,000 0 0 0 0 0 0 0 2,933,420 2,537,500 2,880,000 3,043,000 3,216,800 3,400,900 3,596,200 51,980 284,300 2,700 11,000 20,200 28,100 37,800 977,890 977,890 1,262,190 1,264,890 1,275,890 1,296,090 1,324,190 1,029, 870 1,262,190 1,264,890 1,275,890 1,296,090 1,324,190 1,361,990 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,029, 870 1,262,190 1,264,890 1,275,890 1,296,090 1,324,190 1,361,990 0 0 0 0 0 0 0 $1,029,870 $1,262,190 $1,264,890 $1,275,890 $1,296,090 $1,324,190 $1,361,990 -62- Village of Oak Brook 2009-2013 Five -Year Financial Plan SELF-INSURANCE FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 .2011 2012 2013 Village Contributions $2,004,900 $1,834,000 $1,854,000 $1,965,000 $2,083,000 $2,208,000 $2,340,000 Participant Contributions 173,500 203,800 218,800 232,000 246,000 260,000 276,000 Park District Contributions 326,000 310,000 321,400 340,000 361,000 382,000 405,000 Retiree Contributions 461,000 446,000 473,500 502,000 532,000 564,000 598,000 Cobra Contributions 10,000 2,000 5,000 5,000 5,000 5,000 5,000 Interest 10,000 26,000 10,000 10,000 10,000 20,000 10,000 Total Revenue $2,985,400 $2,821,800 $2,882,700 $33054,000 $3,237,000 $3,429,000 $3,634,000 -62- Village of Oak Brook 2009-201.3 Five -Year Financial Plan SELF-INSURANCE FUND Long -Range Operating Budget -63- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Exceptional Charges Stop -Loss Premiums $224,500 $209,000 $218,500 $229,000 $241,000 $253,000 $266,000 HMO Premiums 0 41,600 72,000 75,600 79,400 83,300 87,500 Life Insurance Premiums _ 36,500 33,100 35,300 36,400 37,400 38,600 39,700 Health Claims 2,300,000 1,900,000 2,150,000 2,279,000 2,415,000 2,560,000 2,715,000 Dental Claims 182,800 164,400 192,000 204,000 216,000 229,000 242,000 Plan Administration Expense 189,620 189,400 212,200 219,000 228,000 237,000 246,000 Total Exceptional Charges $2,933,420 $2,537,500 $2,880,000 $3,043,000 $3,216,800 $3,400,900 $3,596,200 -63- VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN GARAGE FUND DESCRIPTION: This fund is an internal service fund financed by charges to Village departments for maintenance of vehicle fleet equipment. Expenditures support the operation and maintenance of cars, tracks, most fire equipment, public works construction equipment and related items. OVERVIEW: Revenue: Revenues are calculated as charge -backs to various operating budget programs based on historical fuel and maintenance cost information. Operations: All costs associated with operation and maintenance of the Village's vehicle and equipment fleet are charged to this fund. Annual transfers to the General Corporate Fund for administrative services are also included. The projections include increases in the cost of fuel due to elevated oil prices as well as increases in the cost of repairs. Capital Expenditures: Capital expenditures are programmed for equipment enhancements for the operation. —64— . 64— . Village of Oak Brook 2009-2013 Five -Year Financial Plan GARAGE FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Unrestricted Cash Available, January 1, 2008 $115 Estimated Income $642,000 $809,850 $676,050 $801,000 $801,000 $801,000 $801,000 Less Estimated Operating Expenses Operating Budget 553,210 668,310 574,250 595,395 615,686 636,754 658,633 Exceptional Charges 29,950 29,950 30,720 31,550 32,350 33,150 33,950 Estimated Net Operating Income 58,840 111,590 71,080 174,055 152,964 131,096 108,417 Add Beginning of Year Cash Balance 115 115 108,905 164,355 338,410 491,375 622,471 Estimated Available Funds 58,955 111,705 179,985 338,410 491,375 622,471 730,888 Interfund Loan 0 0 0 0 0 0 0 Interfund Loan Repayment 0 0 0 0 0 0 0 Adjusted Cash Available 58,955 111,705 179,985 338,410 49L,375 622,471 730,888 Less Capital Improvement Program 5,000 2,800 15,630 0 0 0 0 Estimated Unrestricted Cash Balance at Year -End $53,955 $108,905 $164,355 $338,410 $49I,375 $622,471 $730,888 -65- -66- Village of Oafs Brook 2009-2013 Five -Year Financial Plan GARAGE FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Vehicle O & M Charges $640,000 $809,000 $675,000 $800,000 $800,000 $800,000 $800,000 Interest 2,000 850 1,050 1,000 1,000 1,000 1,000 Total Revenue $542,000 $809,850 $676,050 $801,000 $801,000 $801,000 $801,000 -66- Village of Oak Brook 2009-2013 Five -Year Financial flan GARAGE FUND Lang -Range Operating Budget -67- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Personnel $205,520 $197,055 $204,340 $216,237 $227,049 $238,401 $250,321 Materials and Supplies 220,260 272,600 188,090 192,792 197,612 202,552 207,616 Operations and Contractual 127,430 198,655 181,820 186,366 191,025 195,800 200,695 Total Operating Budget $553,210 $668,310 $574,250 $595,395 $615,686 $636,754 $658,633 Exceptional Charges Transfer to Infrastructure Fund $25,000 $25,000 $25,800 $26,600 $27,400 $28,200 $29,000 Vehicle Replacement Charge 4,950 4,950. 4,920 4,950 4,950 4,950 4,950 Total Exceptional Charges $29,950 $29,950 $30,720 $31,550 $32,350 $33,150 $33,950 Capital Improvement Program Engine Diagnostic System Replacement Floor Hoist Upgrade Battery Tester/Charger 5,000 2,800 . Brake Lathe 8,200 Tire Balancer 3,000 Tire Machine 4,430 Total Capital Improvement Program $5,000 $2,800 $15,630 $0 $0 $0 $0 Total Budget - $588,160 $701,060 $620,600 $626,945 $648,036 $669,904 $692,583 -67- VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN EQUIPMENT REPLACEMENT FUND DESCRIPTION. This fund was created as a means of pre -funding replacement of major capital equipment, primarily vehicles. It has been supported by other funds, principally the General Corporate, Infrastructure,. and Water Funds, through vehicle user charges. This fund is utilized solely for replacement of fleet equipment. Acquisition of new equipment (i.e., not as replacements) is reflected in the fund where the using department or division resides. OVERVIEW. Revenue: Prior to 2002, revenues were calculated as charge -backs to various operating budget programs based on future replacement cost and funded over the remaining life of existing vehicles and equipment. In 2002, the charge -back attributable to the General Corporate Fund was eliminated and replaced with 20% of utility tax collections (i.e. 1% of the total 5% rate). For 2003 and 2004, the Equipment Replacement Fund's share of utility tax collections was redirected to the General Corporate Fund in order to fund operating needs (the General Corporate Fund share was not funded). For 2005 and thereafter there is a return to the 2002 practice whereby operating budget programs are assessed a charge -back based on future replacement cost. Due to budget issue the Village has encountered over the last several years, the General Corporate Fund contribution was limited to $300,000 in 2007. For 2008, although $400,000 was budgeted, this amount has been rescinded by the Village Board and no contribution is budgeted for 2009. For 2010 and thereafter, full funding of the General Corporate Fund share is projected. Capital Expenditures: The capital program reflects normal scheduled replacements of existing fleet vehicles. The actual timing of the replacement will be based on mileage, condition, and maintenance history of the vehicle at that time. The deferral of the replacement of some vehicles from the schedule contained here is likely to occur. -68- Unrestricted Cash Available, January 1, 2008 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $3,509,361 Village of Oak Brook 2009-2013 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 I $740,155 $344,155 $284,270 $909,613 $921,227 $945,581 $971,431 0 0 0 0 0 0 0 0 0 0 0 0 0 0 740,155 344,155 284,270 909,613 921,227 945,581 971,431 3,509,361 3,509,361 3,216,971 2,750,631 1,951,364 2,294,071 2,766,572 4,249,516 3,853,516 3,501,241 3,660,244 2,872,591 3,239,652 3,738,004 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,249,516 3,853,516 3,501,241 3,660,244 2,872,591 3,239,652 3,738,004 1,156,490 636,545 750,610 1,708,880 578,520 473,080 410,800 $3,093,026 $3,216,971 $2,750,631 $1,951,364 $2,294,071 $2,766,572 $3,327,204 -69- Village of Oak Brook 2009-2013 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Revenue Projections -_70- 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Vehicle Replacement Charges 610,155 210,155 204,270 844,600 872,200 889,700 906,100 Interest 120,000 97,000 60,000 55,013 39,027 45,881 55,331 Sales/Insurance Proceeds 10,000 37,000 20,000 10,000 10,000 10,000 10,000 Total Revenue $740,155 $344,155 $284,270 $909,613 $921,227 $945,581 $971,431 -_70- Village of Oak Brook 2009-2013 Flame -Year Financial Plan EQUIPMENT REPLACEMENT FUND Capital Improvement Program 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 General Management Vehicles $0 $0 $0 $35,000 $0 $0 $0 Engineering Vehicles 25,000 0 25,000 0 0 0 0 Police Vehicles. 143,655 92,335 139,275 257,630 179,940 339,340 184,300 Fire and EMS Vehicles 496,000 496,000 0 1,211,850 33,580 0 0 Code Enforcement Vehicles 0 0 0 0 0 0 0 Public Works Vehicles 443,625 0 557,735 204,400 259,600 133,740 0 Water Vehicles 48,210 48,210 28,600 0 105,400 0 226,500 Total $1,156,490 $636,545 $750,610 $1,708,880 $578,520 $473,080 $410,800 VILLAGE OF OAK BROOK 2009-2013 FIVE-YEAR FINANCIAL PLAN POLICE AND FIRE'EFIGHTERS' PENSION FUNDS DESCRIPTION: The Police and Firefighters' Pension Funds are separate financial entities mandated by Illinois law. The respective pension boards, in cooperation with the Village, strive to provide financially sound pension funds through application of proper actuarial practices and compliance with statutory requirements. The specific pension benefits are determined by the Illinois General Assembly, OVERVIEW: Revenue: Traditionally, local pension systems are property tax supported. Lacking legal authority to levy for this or any other purpose, Oak Brook has met its funding requirements via contributions from the General Corporate Fund. Thus, the Police and Firefighters' Pension Funds have been supported primarily by the sales tax. The amounts contributed are based on payroll and are made via percentage factors that are determined by actuarial studies and updated annually. Declines in the equity markets have had a major impact on the Village's Police and Firefighters' Pension Funds. For 2008, unrealized losses resulting from the market declines are projected at $4.5 million and $3.3 million, respectively. Since the employee contribution is at a rate fixed by State statute, all of the investment losses must be absorbed by the Village (amortized until 2033) and will have a major impact on the Village's contributions going forward. For 2009, Police and Firefighters' Pension Fund contributions are projected to increase by approximately $350,000; the actual amount will not be determined until an actuarial study is completed in early 2009. The actual amount the Village may be required to contribute could change depending on the investment markets for the remainder of the year as well as possible changes in actuarial assumptions. Investment earnings are projected at the current actuarially assumed rate of 7.50% (Police) and 7.50% (Firefighters') over the 2009-2013 planning period. Operations: Expense projections in each pension fund reflect projected increases in the number of retirees in each system and annual adjustments to pension benefits in accordance with applicable law. FUTURE CONSIDERATIONS: State tax cap legislation prohibits the Village from levying a property tax for pension purposes without voter approval. Therefore, the General Corporate Fund must continue to plan for contributions to the pension funds in amounts sufficient to fund future benefits in accordance with actuarial requirements and applicable law. -T2- Village of OokIlrook 2009.2013 Rive -Year Financial Plan POLICE PENSION FUND Summary 2b08 Budget 2008 Estimate 2009 2010 Restricted CashAvaila6le, January, 1, 2008 $27,835,216 2011 2012 2013 Estimated Income $3,121,685 ($3,560,000) $2,862,135 $2,925,179 $3,034,981 $3,146,368 $3,259,726 Less Estimated Operating Expenses Operating Budget 101,795 85,275 101,775 104,059 106,728 109,458 112,252 Exceptional Charges 1,580,000 1,503,240 1,718,000 1,814,000 1,915,000 2,014,000 2,113,000 Estimated Net Operating Income 1,439,890 (5,148,515) 1,042,360 1,007,120 1,013,253 1,022,910 1,034,474 Add Beginning of Year Cash Balance 27,835,216 27,835,216 22,686,701 23,729,061 24,736,181 25,749,435 26,772,344 Estimated Available Funds 29,275,106 22,686,701 23,729,061 24,736,181 25,749,435 26,772,344 27,806,818 Interfimd Loan 0 0 0 0 0 0 0 lnterfund Loan Repayment 0 0 0 0 0 0 0 Adjusted Cash Available 29,275,106 22,686,701 23,729,061 24,736,181 25,749,435 26,772,344 27,806,818 Leas Capital Improvement Program 0 0 0 0 0 0 0 Estimated Restricted Cash Balance at Year End $29,275,106 $22,686,701 $23,729,061 $24,736,181 $25,749,435 $26,772,344 $27,806,818 -73- Village Contributions Employee Contributions Interest Total Revenue Village of Oak Brook 2009-2013 Five -Year Financial Plan POLICE PENSION FUND Revenue Pro jectiom 22008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $616,685 $619,000 $787,120 $810,734 $835,056 $860,108 $885,911 330,000 321,000 325,015 334,765 344,711 355,052 365,889 2,175,000 (4,500,000) 1,750,000 1,779,680 1,855,214 1,931,208 2,007,926 $3,121,685 ($3,560,000) $2,862,135 $2,925,179 $3,034,981 $3,146,368 -74- $3,259,726 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Exceptional Charges Village of Oak Brook 2009-2013 Five-Year+Financial Plan Pension Benefits $1,575,000 $1,495,000 $1,713,000 POLICE PENNON FUND $1,910,000 $2,009,000 $2,108,000 Pension Refunds 5,000 Lang -Range Operating Budget 5,000 5,000 5,000 5,000 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $2,750 $2,730 $2,625 $3,000 $3,200 $3,400 $3,600 2,300 2,800 2,800 2,300 2,300 2,300 2,300 96,745 79,745 96,350 98,759 101,228 103,758 106,352 $101,795 $85,275 $101,775 $104,059 $106,728 $109,458 $112,252 Exceptional Charges Pension Benefits $1,575,000 $1,495,000 $1,713,000 $1,809,000 $1,910,000 $2,009,000 $2,108,000 Pension Refunds 5,000 8,240 5,000 5,000 5,000 5,000 5,000 Total Exceptional Charges $1,580,000 $1,503,240 $1,718,000 $1,814,000 $1,915,000 $2,014,000 $2,113,000 Total Budget $1,681,795 $1,588,515 $1,819,775 $1,918,059 $2,021,728 $2,123,458 $2,225,252 -75- Restricted Cash Available, January 1, 2008 $22,482,770 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfimd Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement program Estimated Restricted Cash Balance at Year -End Village of Oak Brook 2009-2013 Five -Year Financial Plan FIREFIGHTERS' PENSION FUND Summary 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 $2,611,415 ($2,377,575) $2,425,760 $2,508,096 $2;582,408 $2,656,398 $2,729,541 62,345 64,855 63,600 65,021 66,478 67„971 69,502 1,505,000 1,500,000 1,720,000 1,880,000 1,970,000 2,067,000 2,159,000 1,044,070 (3,942,430) 642,160 563,075 545,930 521,427 501,039 22,482,770 22,482,770 18,540,340 19,182,500 19,745,575 20,291,505 20,812,931 23,526,840 18,540,340 19,182,500 - 19,745,575 20,291,505 20,812,931 21,313,971 0 0 0 0 0 0 0 0 0 0 0 0 0 0 23,526,840 18,540,340 19,182,500 19,745,575 20,291,505 20,812,931 21,313,971 0 0 0 0 0 0 0 $23,526,840 $18,540,340 $19,182,500 $19,745,575 $20,291,505 $20,812,931 $21,313,971 -76- —77- Village of Oak Brook 2009--2013 Five -Year Financial Plan FIREFIGHTERS' PENSION FUND Revenue Projections 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 Employee Contributions $252,500 $253,700 $248,800 $256,264 $263,952 $271,871 $280,027 Village Contributions 608,915 668,725 789,460 813,144 837,538 862,664 888,544 Interest 1,750,000 (3,300,000) 1,387,500 1,438,688 1,480,918 1,521,863 1,560,970 Total Revenue $2,611,415 ($2,377,575) $2,425,760 $2,508,096 $2,582,408 $2,656,398 $2,729,541 —77- Personnel Materials and Supplies Operations and Contractual Total Operating Budget Exceptional Charges Pension Benefits I Pension Refunds I j Total Exceptional Charges Total Budget Village of Oak Brook 2009•-2013 Five -Year Financial Plan FIREFIGHTERS' PENSION FUND Long -Range Operating Budget 2008 Budget 2008 Estimate 2009 2010 2011 2012 2013 5,000 0 4,750 6,050 4,500 4,500 4,500 4,500 41500 1,250 2,250 2,250 2,250 2,250 2,250 2,250 56,345 56,555 56,850 58,271 59,728 61,221 62,752 $62,345 $64,855 $63,600 $65,021 $66,478 $67,971 $69,502 $1,500,000 $1,500,000 $1,715,000 $1,875,000 $1,965,000 $2,062,000 $2,154,000 5,000 0 5,000 5,000 5,000 5,000 5,000 $1,505,000 $1,500,000 $1,720,000 $1,88000 $1,970,000 $2,067,000 $2,159,000 $13567,345 $1,564,855 $1,783,60.0 $1,945,021 $2,036,478 $2,134,971 $2,228,502 -78- 3