2017 Budget Executive SummaryVILLAGE OF OAK BROOK, ILLINOIS
Table of Contents
Annual Budget Executive Summary
Fiscal Year 2017
Budget Message .................................................................................................................................................. 3
Village Mission, Vision, and Value Statements ................................................................................................... 18
Strategic Plan ....................................................................................................................................................... 19
Organizational Chart ............................................................................................................................................ 21
Personnel Organization Chart ............................................................................................................................. 22
Financial Organization Chart ........................ : ...................................................................................................... 23
Cash and Investments Analysis ........................................................................................................................... 24
Revenue Summary Graph by Fund ...................................................................................................................... 25
Revenues by Major Type Graph .......................................................................................................................... 26
Expenditures Summary Graph by Fund .............................................................................................................. 27
Expenditures by Major Type Graph .................................................................................................................... 28
LONG-TERM STRATEGIC AND FINANCIAL PLANNING
The Village of Oak Brook developed its 2016-2017 Strategic Plan in June 2015 at a Strategic
Planning workshop (Page 25-26). The session consisted of discussion and interaction
concerning specific goals the Board wished to focus their efforts on. The Board selected the
following six primary Village goals:
• Promote economic development
• Financial Stability
• Provide Safe, Efficient, Well Maintained Infrastructure
• Promote and Enhance Oak Brook's image
• Maintaining and Enhance Village Services to Residents, Businesses, and Visitors
• Human Resource Management
The Village Manager provides oversight and direction to all departments to ensure that the
strategic goals reflect the policies of the Village Board and are successfully accomplished. The
strategic plan is a dynamic document that will change each year. Performance measurements
will be refined as the strategies become clearer.
The Village Board is well informed about the Village's financial situation through financial
reports and communications that occur throughout the year. As the 2017 budget process
began, the Board was familiar with what the current and long-term issues were facing the
Village . The Village has strong financial management, policies and practices.
The Village of Oak Brook Five-Year Financial Plan is intended to provide the community with a
long-range projection of the financial condition for each of the ten funds that comprise the
financial structure of the Village of Oak Brook. The Five-Year Plan assumes the continuation of
current service levels and being able to maintain those levels in future years. The forecast
provides a foundation for discussion and policy decisions that will be made in the future to
maintain the existing service levels and/or enhance service levels in specific areas.
The presentation for each fund includes a summary, revenue projections, a general long-range
operating budget and a capital improvement program, if applicable. The Capital Improvements
Program focuses on all vehicles and all capital items over $5,000. The summary for each fund
reflects the revenue and expenditure projections and presents a rolling five-year operating
statement, beginning with cash available as of January 1, 2016 as reported in the audited
financial statements as of December 31, 2015.
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BUDGET PROCESS
The Village's FY2017 budget process began in August 2016 with the discussion of the status of
the 2016 -2017 Strategic plan and ideas for updating the plan. This year, priorities continue to
be promoting economic development, financial stability, providing safe, efficient, well
maintained infrastructure, promoting Oak Brook's image, maintain and enhance services, and
improving employee productivity and morale. A complete list of the strategic planning goals is
listed in this book for 2016-2017. The Finance Director prepares the revenue forecasts to
determine what is available to fund departmental operating and capital requests. Each
Department Director submits their expenditure requests to the Finance Director. Through a
series of document reviews and budget work sessions, the Finance Director revises budgets
based on feedback from the departmental meetings, which includes final recommendations
from the Village Manager. Through these document reviews and budget meetings, a FY2017
budget document was drafted.
The 2017 Budget continues the methodology, called "results budgeting", that continues to be
used in Oak Brook. The methodology combines traditional program budgeting and line item
control with a management by objectives system. Coupled with the Five-Year Financial Plan,
this approach provides the Village with a management system that goes beyond traditional
budgeting to become a directional mechanism for accomplishment of the results desired by the
Village Board and the community. The methodology is summarized in the Budget Overview
section of the document.
Short range policy guidance is provided each year by the Village Board and staff through the
establishment of Program Objectives which are described throughout the 2017 Budget.
Statements summarizing each objective are found on the Program Summary page that
accompanies each Program Budget.
Ordinance 2011-Fl-TX-BU-S-1318, the Village Board's policy ordinance on Finance, Taxation and
Budget, provides both long and short range guidance to the budget process through the
fundamental policies embodied therein. A copy of the full Policy Ordinance is found in the
Appendix . A brief summary of the Policy Ordinance, as well as other policy decisions of the
Village Board, directs staff to:
• Operate the Village without a general real estate tax.
• Accumulate cash reserves in advance of major capital projects (utilizing long term debt
very judicially and only in order to meet financial goals and policies of the Board).
• Maintain a cash balance reserve of at least six months operating expenditures in the
General Corporate Fund.
• Operate enterprise activities on a self-supporting basis.
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• Annually review the need for and uses of the utility tax on natural gas and electric
service.
The Budget does not rely on a real estate tax to fund operations. Operating revenues will be
used to fund capital projects. Enterprise activities are intended to operate on a self-supporting
basis. For FY2017, the Budget includes an operating transfer of $73,505 from the General Fund
to the Sports Core Fund.
CASH RESERVE BALANCE
The financial policy of the Village is to maintain a cash balance reserve of at least six months of
operating expenditures in the General Corporate Fund. The Village strives to accumulate seven
months when revenues exceed expenditures to protect ourselves against further downturns.
At the end of 2016, the General Corporate Fund cash and investments balance is projected to
be $15,212,248 or 8.5 months. The projected ending cash balance for 2017 in the General
Corporate Fund of $15,282, 768 is equal to 8 .3 months of operating expenses. The General
Corporate Fund 2017 Budget is operating at a balanced budget where revenues are at or
exceed expenditures without using cash reserves.
ECONOMIC CONDITION AND OUTLOOK
To ensure the financial future of Oak Brook, we must follow the path of economic sustainability
with an eye toward streamlining our processes. Residents and businesses should expect and
receive services delivered in a consistent manner that is professional, responsive, and fiscally
responsible. There have been a number of internal and external factors that we take into
account when compiling the municipal budget, such as pension liabilities, economic
development, increased health care costs, revenue sources, and the funding of vehicle,
equipment and capital improvements.
1. Changes in the Police and Fire pension legislation allows municipalities to fund at a 90%
level compared to the 100% level and additional time to amortize the unfunded
liabilities until 2040 of their pension obligations. This provides municipalities with some
relief, however, additional measures are necessary in order for the Village to meet its
future pension obligations.
The Village continues to fund its annual obligation; however, over the past 10 years the
contribution for police and fire pension plans has increased from $1.1 million in 2006 to
$2.8 million in 2015, or 155%. Pension contributions were budgeted at $3.8 million in
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fiscal year 2016. The pension issue needs to be addressed by the State as the funding
for these plans is becoming increasingly unaffordable for all Illinois municipalities.
An investment rate of return of 6.75%, 100% level of funding, and the RP-2000 mortality
table projected to 2016 using Scale AA was budgeted in 2017 for both the Police and
Fire pension, which fully complies with the state statute. Investment returns can
significantly fluctuate depending on market conditions. A completed actuary report will
be presented to the Village Board in May and retroactively applied as of January 1,
2017. Total contributions to the Police and Fire Pension Funds budgeted in 2017 are
$3.9 million.
2. With the departure of McDonald's headquarters in 2018, the sustainability of various
revenue sources remain uncertain. The loss of nearly 3,000 employees, as well as
numerous business visitors could have a negative impact on revenue sources such has
sales tax and telecommunications tax. At this time, the overall economic impact of
McDonald's corporate move is still being determined. Although the Village is losing
McDonald's, it is gaining Duchossois Group, Midwest Orthopedics, Hyatt House, and
other businesses in the near future. The Village must continue to monitor the changing
economic climate and plan future budgets accordingly.
3. The future of health insurance is changing and makes us wonder what the "ever-
expecting" costs will bring. With the passage of the Affordable Care Act (ACA) and
subsequent requirements, the village has made many modifications to its plan designs
and structure. The uncertainty surrounding required reporting, associated penalties, and
the Cadillac tax goes into effect in 2020. The ACA presents the Village a number of
challenges in forecasting and budgeting for federally mandated increases in benefits and
taxes. The Village continues to prepare to the greatest extent possible by obtaining
competitive rates from our broker and carriers as well as tracking our plans to ensure
they do not hit the Cadillac tax threshold. We will continue to conservatively budget in
order to prepare for unforeseen circumstances related to the on-going implementation
of the ACA or any other program it may be replaced with.
4. Funding of Capital Improvements at the Sports Core, municipal building, vehicle
replacements, and water main replacements continues to be a challenge being able to
prioritize and address all of the funding needs. Facility studies are currently underway
for the Butler Government Center and Bath and Tennis Clubhouse to determine
replacement and maintenance costs. A study for Fire Station 93 is planned for 2017.
Facility studies for the remainder of Village properties will be planned over the next few
years. A water rate study was completed in the last quarter of 2015 to determine any
changes to water rates and future funding needed for major water system
improvements. The result of the study indicated the need for rate increases between 7-
10% over the next five years.
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million, an increase of $0.3 million over the 2016 budgeted revenues, or 1.2%. This is primarily
due to increases in Sales Tax, Income Tax, Telecommunications Tax, and License & Permit
revenue.
Sales tax is the largest source of revenue in the General Corporate Fund which makes nearly
50% of total revenues. Sales tax revenue to the General Corporate Fund is estimated at $13.0
million for 2017, which is $0.4 million, or 3.4%, over the 2016 Budget amount and even with the
projected 2016 amount . The 2017 budgeted sales tax is predicated on opening ofthe 12 screen
Oakbrook Center Theater and food hall, opening of the Duchossois headquarters building,
opening of Midwest Orthopedics, the Gibson's restaurant expansion, and the opening of
Michael Jordan's new restaurant in Executive Plaza. The 2017 budgeted sales tax revenue also
took a conservative approach when estimated newer businesses in the Village that don't have
historical data to study .
Non-home rule sales tax revenue supports the construction and maintenance of roadways,
drainage and safety pathway systems in the Infrastructure Fund. For 2017, $6.0 million is
estimated which is $0.1 million, or 2.5% over the 2016 Budget amount and even with the
projected 2016 amount. The Oak Brook Promenade sales tax revenue for 2017 is budgeted for
$100,500, which is an increase of $3,500, or 3.6% over the 2016 budgeted amount.
Utility/Telecommunications tax, which is the second largest source of revenue in the General
Corporate Fund, is projected to be at $5.6 million in 2017, which is an is increase of $138,000,
or 2.5%, compared to the 2016 budget, but down slightly compared to the 2016 projected
balance due to a one-time payment from the State. Other revenue sources of significance are:
• In late 2015, the Village worked with a consultant on a water rate study. The results of
the study recommended a rate increase of 10% in years 2016 and 2017, with a 7%
increase in years 2018-2020. A 10% increase in the water user rate is projected for 2017
for purposes in the budget. The water revenues are based on normal usage, which will
generate $9 .1 million. Water revenues are affected by weather conditions and
consumer usage.
• For the 2017 Budget, Sports Core Revenues are budgeted at $3.2 million (excluding golf
surcharges, grants and transfers). Sports Core revenues increased by $0.2 million compared
to the 2016 Budget due to increased programming.
Sports Core revenues includes a transfer from the General Corporate Fund for $73,505,
and reimbursements from the Infrastructure Fund for $24,000 and Water Fund for
$8,000. The General Fund transfer is a subsidy for capital and operating expenses. The
Infrastructure and Water Fund reimbursements are for lease land charges. The street
department uses the area for forestry activities (primarily leaves) and the water
department uses the area for storage of soil pending testing and disposal. The water
department uses 0.2 acre area and the street department uses a 0.6 acre area.
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Assuming a land value of $500,000 per acre and a lease rate of 8% of the land value per
year, this comes to $8,000 per year utilized by the water department and $24,000 by
the street department.
• The Hotel/Motel revenues are budgeted at $1.3 million for the 2017 budget, which is
primarily Hotel/Motel taxes. Hotel/Motel taxes are budgeted for a decrease of $25, 700
compared to the 2016 Budget, but a $24,180 increase from the 2016 projected. The
decrease from the 2016 Budget is due to an over estimation in 2016 from not having
historical data on newer hotels. As a policy directive, 1% of the 3% rate is used to
promote tourism and overnight stays within the Village, and the remaining 2% of the 3%
rate is dedicated primarily to funding the Village's streetscape and beautification
initiative in the Hotel District.
• Revenue to the Equipment Replacement Fund for vehicle replacement charges of
$605,330 has been budgeted for 2017. In order to fund for the systematic replacement
of the Village's vehicular fleet, funds are transferred from the General Corporate Fund,
Infrastructure Fund, Water Fund, and Garage Fund for this purpose. From 2008 -2011
the Village's General Corporate Fund was not funding the Equipment Replacement Fund
due to budget constraints. For the 2012 and 2013 Budget, the General Fund partially
funded a portion of their share and in 2014 and 2015 the Village funded it at 100%. In
2016, the General Fund again partially funded its share of the equipment replacement
charges . The 2017 budget reflects a reduction of $200,000 in contributions from the
General Corporate Fund. For 2017, contributions from the General Fund are 64.3% of
the recommended amount. The Equipment Replacement Fund is able to meet its
financial obligations for the next five years as long as 100% contributions are made
starting in 2018 .
OVERVIEW OF EXPENDITURES
The total spending in the proposed 2017 Budget is $51.4 million, which is even with the
2016 Budget. The proposed 2017 Budget includes total General Fund expenditures of
$24.0 million, which is an increase of $0.2 million, or 1.0% compared to the 2016 Budget.
This is primarily due to normal salary and benefits increases and increased capital outlay,
but offset by the elimination of certain positions . A Personnel Summary is included in the
Budget Summaries section of this book (page 91). Two (2) permanent positions have
been added to the 2017 budget, five (5) positions have been eliminated or reduced, and
one (1) has been reclassified.
• The Illinois Municipal Retirement Fund (IMRF) Village contribution for 2017 decreased
from 13.40% of payroll to 12.55%. Total IMRF contributions for 2017 are $0 .7 million, a
decrease of $82,915 over the 2016 budgeted amount.
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• Contract negotiations are ongoing with the Firefighter's Union. Police union increases
are 2.25% plus a $0.40 per hour equity adjustment increase effective January 1, 2017.
Public Works union increases are 2.0% effective January 1, 2017. Union employees that
are not at top of grade are also eligible for a merit based increase up to 3.5% dependent
on their performance evaluations. For non-union employees, a wage increase of 3.5%
was factored in the 2017 budget, which will be dependent on the 2017 actual
performance evaluation.
The following paragraphs summarize the most significant features of the operating budget of
each department:
Department 1 -Legislative and General Management This department involves a wide variety
of general-scope functions including the operations of the Village Board and the offices of the
Village Clerk, Village Manager and Village Attorney. The Village Clerk budget includes an
increase in salaries and benefits due to reallocating 65% of staff time from the Legal and Human
Resources budget. This is offset by the elimination of a part time position in the Village Clerk
budget for 2017. The Legal budget includes no salary and benefits as the 35% allocation of the
Senior Administrative Assistant has been shifted to the Village Clerk budget. The Legal program
reflects a decrease in attorney fees, which are budgeted at $120,000, a decrease of 40% from
the 2016 Budget. The decrease in Village attorney fees is the result of a change in attorney
early in 2016. Labor Attorney fees of $66,000 are budgeted for Fire and Public Works
negotiations. The General Management program reflects a decrease in salaries and benefits
due to combining the elimination of the Assistant Village Manager position. This position was
previously combined with the Finance Director position. The Human Resources budget includes
a decrease in full time salaries and benefits due to moving the Senior Administrative Assistant's
30% allocation to the Village Clerk budget. The Human Resources budget also includes an
increase in part time salaries for an employee hired in late 2016. This employee will work less
than 1,000 per year.
Information Technology budget includes the continuation of two full time contract services for
a village-wide document imaging project for $62,400. A part time IT person is budgeted to
work less than 1,000 hours in 2017. This position was previously a full time employee that was
split 50% with the Village of Hinsdale. This agreement was discontinued during 2016. A 10%
portion of the IT Director's salary and benefits will continue to be allocated to the Geographic
Information System program in year 2017.
The employee benefits program includes health claim costs of $2,155,000, which is an increase
of $105,000 from the 2016 budget. The Public Works Union are members of the Local 150
health insurance plan, which the Village contributes to on a monthly basis per the collective
bargaining agreement.
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The Hotel/Motel program includes $1,837,500 for the second half of the 22nd street (Salt Creek
-1294). Median plantings are budgeted for $20,000 and design costs are budgeted for
$200,000 for 2017.
Department 2 -Financial Services This department includes all functions related to the
Village's financial management activities. Financial Management reflects an increase in salary
and benefits due to the elimination of 12% going to General Management program to help with
Assistant Village Manager duties. The Accounting and Reporting program decreased 23.8% due
to the elimination of the Assistant Finance Director position. lnterfund Transfers includes a
transfer to the Sports Core for $73,505 from the General Corporate Fund and $128,300 to
Infrastructure for administrative costs. The Sports Core transfer from the General Corporate
Fund is for Polo operating expenses of $50,000 and capital improvements for $23,505.
Installment Contract Debt Service includes $289,800 for interest and principal on the West
Wing building expansion note . FY2017 represents the final year on this debt issuance. T.l.F.
Note Debt Service includes $454,380 for interest and principal on the $4.25 million limited
obligation T.l.F Note that was issued early in 2008.
Department 3 -Public Works This department is in charge of maintenance of the Village's
physical infrastructure consisting of buildings, streets, pathways, trees and vehicular
equipment. The department also is responsible for operation of the water utility.
Significant changes for this department include: the Equipment Replacement Fund has
budgeted replacement of three police vehicles at $115,500; Public works building and grounds
utility truck for $61,000, water department utility truck for $68,370, and two pieces of
equipment for $46,000; Fire Rescue Engine setup costs of $100,000, and a Battalion Chief
vehicle for $82,500. Water Operations reflects an increase of $147,165, or 2.7%, in DuPage
Water Commission costs from the 2016 Budget and $260,260, or 4.8%, from the 2016
projected . Water meter replacements are budgeted for $2,840,010, Reservoir A and B
improvements are budgeted for $230,000, and contracting out the utility locating operation for
$162,750 . The Public Works Management budget includes a charge of $162,500 to reimburse
the General Corporate Fund for common administrative costs and lease charges for land at the
Sports Core. The Streets General Salaries program includes an increase of $28,620 in seasonal
salaries compared to the 2016 Budget due to the increased usage of seasonal employees during
times of need. The Streets and Traffic Maintenance program includes capital for a gravel
spreader for $10,000. This was budgeted in 2016, but delayed until 2017. It also includes
$137,860 for maintenance and replacement of traffic lights and controllers . The Snow Removal
program reflects a decrease in the state salt contract, thereby decreasing chemical costs to
$82,000 from $130,000 in the 2016 Budget. The Municipal Buildings Improvements budget
includes $372 ,500 in capital improvements, a decrease of $117,500 from the 2016 budget.
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Department 4 -Engineering This budget covers all operations of the Engineering Department
and the office of the Village Engineer, which is part of the Development Services Director
position. The 2017 Engineering budget includes the outsourcing of the engineering function.
The Project Engineer, Regulatory Engineer, and Senior Administrative Assistant positions that
are allocated to the Engineering department have been eliminated as of January 1, 2017 . These
positions will be replaced by a Staff Engineer position to handle normal day to day inquires and
two part-time Permit Coordinators, one that was previously budgeted in the Development
Services budget in 2016 and one that is new for 2017. Engineering services related to major
capital projects will be handled by a contracted engineering firm. The highlights of the capital
programs are discussed elsewhere in this transmittal letter and on the Program Summary
exhibits (pages 238-240).
Department 5 -Library The 2017 Library Budget includes the retirement of the Library
Director. This position will be reclassified as a Head Librarian position that oversees the Library
operations. There are no other significant changes projected in the operating budget of this
department.
Department 6 -Police Police Field Services includes an increase of $10,000 in special detail
overtime compared to the 2016 Budget . Special detail hours are billed to outside sources and
reimbursed to the Village. The Auxiliary budget includes an increase of $37,910 in personnel
costs from the 2016 Budget due to an increase in special detail and training hours. Support
Services Records includes DuComm fees of $460,675, a 5.0% increase from 2016. Police
pension contributions are budgeted at $1.8 million, which is consistent with the 2016 budget.
This amount reflects 100% of the actuarial determined contribution amount.
Department 7 -Fire Fire, Rescue, and EMS Operations includes an increase in overtime of
$36,310 from the 2016 budget due to staffing needs in this department. A new Fire Utility
Vehicle for $160,000, Fire gear for $19,000, LDH fire hose for $9,000, Starcom portable radios
for $18,000, and a fire gear dryer for $7,000 are included in the 2017 capital request.
Emergency Medical Services program includes Zoll Monitor/Defibrillator for $35,200 which is
needed for safety measures. Fire pension contributions are budgeted at $2.1 million, an
increase of $126,400 or 6 .5% compared to the 2016 Budget. This amount reflects 100% of the
actuarial determined contribution amount.
Department 8 -Sports Core
General Operations program expenses are allocated to the various programs within the Sports
Core Bath and Tennis programs and will be shown as overhead expenses. Swimming
Operations continues to outsource the management and staffing of this program . This program
includes capital improvements of $25,000 for wading pool improvements and $6,000 for pool
lounge chairs. Tennis Operations reflects a decrease in commission payments due to
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programming being handled by Sports Core staff. Polo is budgeted for a $50,000 contribution
towards a privatization business model in 2017. Open Fields includes $15,000 budgeted for
new siding on the soccer building.
Bath and Tennis Clubhouse Food and Beverage Operations includes $20,000 for advertising in
2017, an increase of $10,000 from the 2016 Budget. This program also includes $60,000 for
building maintenance, an increase of $32,500 from the 2016 Budget. This increase aligns the
budget with actual historical expenses . Capital expenses in 2017 include: $20,000 for new
carpeting and dance floor in the Oak Brook Room and $15,000 for faux stone or brick to
upgrade the appearance.
Golf Club General Operations includes capital requests of: $35,000 for outdoor furniture,
$25,000 for indoor furniture, $25,000 for interior flooring, and $15,000 for other interior design
improvements. Golf Course Maintenance has $30,000 budgeted for tractors and mowers.
Department 9 -Development Services Development Services Management director's salary
and benefits continue to be split between the Engineering program (40%) and the Development
Services program (60%). The Village Planner position continues to be allocated to the
Development Services department at 60% and to the Hotel Fund for their time on streetscape
and beautification efforts at 40%. This program also includes the continuation of utilizing a
professional planning consultant for $40,000 to update codes and ordinances and for the
Commercial Revitalization Plan . Code Enforcement includes the transfer of a part time Permit
Coordinator position to the Engineering Department.
CAPITAL STRATEGY
During FY2017, the Village updated its five year financial plan for all funds of the Village. This
document contains a listing of all current and future planned capital projects, along with a
description. This document was utilized during the FY2017 budget process to identify capital
expenditure items that were to be included in the FY2017 budget . This document will continue
to be updated on an annual basis and will be utilized when compiling subsequent year's annual
budgets .
Capital requests at or over $5,000 are submitted by the departments and the Village Manager
and appropriate staff members conduct a walk through to discuss and prioritize the capital
items requesting to be replaced. Common capital priorities (in general order of importance)
are: life safety, preventive maintenance, operating cost reduction, basic comfort, and aesthetic
improvement. The 2017 budget for capital projects is $8,340,690, an increase of $1.1 million or
15.2% from the comparable figure in the 2016 budget. A complete listing of all capital projects
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are found in the Budget Summaries section with a brief discuss i on on the major projects by
fund and program (pages 79-88).
"Capital Projects" expenditures are defined as monies spent to buy, improve or maintain an
asset. Examples would be for physical objects such as buildings, equipment and infrastructure.
Capital projects are budgeted in several programs so-named and located in Department 4
(Engineering and Capital Projects) and Department 8 (Sports Core). Other capital outlays are
found in the operating program budgets. The plan outlines the capital projects that are
expected to take place over the next five years and is designed to ensure that capital
improvements will be made when and where they are needed, and that the Village will have
the funds to pay for and maintain them. The following is a brief discussion of the highlights of
the capital program, organized by project type.
Municipal Buildings Municipal Building Improvements includes significant capital items of:
$50,000 for Village Hall west wing carpeting, $50,000 for Village Hall lower level bathroom
remodeling, and $25,000 for a Fire Station 93 building study. A full list of all building projects
budgeted for 2017 can be found in this book on pages 79-80.
• Roadway Improvements -The budget includes $1.8 million for the annual Paving
Program in 2017. A description ofthe various projects can be found on page 89 of this
book.
• Water System Improvements -The budget includes the following significant items:
$2,840,010 to purchase and install new water meters and radio collectors Village-wide,
$150,000 for a control valve at Reservoir A, and $80,000 for a generator at Reservoir B.
A full list of water system capital improvements budgeted for 2017 can be found in this
book on page 84.
PROPERTY TAX POLICY
Sections 7 and 8 of Ordinance 2011-Fl-TX-BU-S-1318 state that it is the policy of the Village
Board that the general operations of the Village continue to be financed without the imposition
of a general tax on real property and that the Board will consider imposition of such a tax only
to meet financial obligations that have been approved by the voters at referendum . In the
history of the Village, the only property tax ever levied was for debt service . The most recent
financial planning process does not project a need to levy a property tax.
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DEBT ADMINISTRATION
The Village's legal general obligation debt limit is 8.625 percent of Equalized Assessed Valuation
(EAV), or $115,276,061 based on January 1, 2015 EAV of $1,336,534,043. General obligation
bonds have been issued only once in the history of the Village. Bonds were authorized and
issued in 1977 for the acquisition and improvement of the Oak Brook Sports Core. The final
payment on those bonds was made in 1994.
Revenue bond debt has been utilized on two occasions. Water revenue bonds were issued in
1973 and again in 1976. The first issue was to finance acquisition of the Oak Brook Utility
Company. The second was to finance improvements to the water system acquired through the
first bond issue . As of May 1, 1996, when the last payment was made on the Series 1973
bonds, the Village has no long term bonded debt outstanding.
Late in 2000, the Village issued installment contract certificates in the aggregate amount of $1.8
million to fund the expansion and renovation of the Bath & Tennis Clubhouse, with the last
payment in 2012. Early in 2001, the Village issued $4 million in similar instruments in order to
finance approximately 40% percent of the Municipal Complex Project.
The 2001 certificates were refinanced in 2009 to extend the term from seven years to nine
years and lower the interest rate. With respect to the 2009 (Refunding) series certificates, the
Village intends to use General Corporate Fund revenues to pay the annual debt service. The
last payment on these certificates is scheduled in December 2017.
Total budgeted debt service activity for 2017 is as follows:
Balance outstanding, January 1, 2017
Debt issued during 2017
Principal scheduled to be retired
Balance outstanding, December 31, 2017
AWARD
General
Corporate
$ 280,000
0
(280,000)
$ 0
The Government Finance Officers Association of the United States and Canada (GFOA)
presented a Distinguished Budget Presentation Award to the Village of Oak Brook, Illinois for its
annual budget for the fiscal year beginning January 1, 2016. In order to receive this award, a
governmental unit must publish a budget document that meets program criteria as a policy
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VILLAGE OF OAK BROOK
MISSION, VISION, AND VALUE STATEMENTS
MISSION
The Village of Oak Brook will provide the community with excellent local government services
and the best educational opportunities that meet the needs of its citizens and are delivered in a
professional, responsive, and fiscally responsible manner.
VISION
Our shared vision for Oak Brook is a place of quality and natural beauty that offers an excellent
residential and business environment along with award winning schools with an unparalleled
commitment to excellence.
VALUES
Integrity: We strive to deliver high quality municipal services to our citizens with integrity,
responsiveness, and fairness.
Teamwork: We will strengthen and build productive working relationships that encourages
diverse opinions and mutual respect, and recognizes and values teamwork, innovation, and
results.
Customer Satisfaction: We will meet our citizen's and customers' needs with courtesy,
honesty, and fairness. We will have a view toward the good of the entire community as well as
the individual resident or corporate citizen.
Quality of Life: Create beautiful, safe and high-quality residential neighborhoods, business
districts, educational opportunities, and community facilities, while maintaining vast open
spaces.
Financial Accountability: We are committed to a financially responsible local government,
while demonstrating effective and efficient delivery of services to the public. Our goal is to
maintain financial stability through prudent planning in order to address long-term funding
issues.
Communication: Consult with and involve Oak Brook citizens in the Village's decision-making
processes through both formal and informal means including hearings, meetings, surveys,
advisory boards and commissions, task forces and committees.
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Village President and Board of Trustees
October 13, 2015
VILLAGE OF OAK BROOK, ILLINOIS
Introduction
Strategic Plan
Fiscal Year 2017
The Village of Oak Brook began to develop its 2016 -2017 Strategic Plan in May of 2015 at a Strategic
Planning workshop held by the Department Directors. In June of 2015, the Village Board and Department
Directors held a combined Strategic Planning Session . The session consisted of discussion and interaction
concerning specific goals the Board selected to focus their efforts on for the years 2016-2017 .
The steps were classified into respective goals, objectives, and strategies . These action steps were compiled
into six primary Village goals:
1. Promote Economic Development
1.1 Plans and Codes That Encourage New Development
1.2 Diversify Housing Options
1.3 Promote Public/Private Partnerships
2. Financial Stability
2.1 Address Pension Obligations
2.2 Preserve Management Rights in Negotiations
2.3 Lean Principles In Operations
3. Provide Safe, Efficient, Well Maintained Infrastructure
3.1 Explore Funding Sources for Long-Termed Projects
3.2 Have a Reliable, Funded Capital Improvement Plan
3.3 Municipal Campus Capital Improvements
4. Promote and Enhance Oak Brook's Image
4.1 Invest in High Quality Streetscape
4.2 Create a Sense of Community
4.3 Re-Foresting the Village
5. Maintain and Enhance Village Services to Residents, Businesses and Visitors
5 .1 Re-Focus on Core Services
5.2 Explore Intergovernmental Cooperation
5.3 Fiber Optic Availability to the Village
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6. Human Resource Management
6.1 Invest in the Village Work Force
6.2 Empowerment and Trust
6.3 Adherence to the Board/Manager form of Government
6.4 Enhanced Communication
The Village Manager provides oversight and direction to all departments to ensure that the strategic goals
reflect the policies of the Village Board and are successfully accomplished. The strategic plan is a dynamic
document that will change each year . Performance measurements will be refined as the strategies become
clearer.
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VILLAGE OF OAK BROOK, ILLINOIS
Budget Summaries
Cash and Investments Analysis
Fiscal Year 2017
General Fund
Special Revenue Funds
Hotel/Motel Tax
Motor Fuel Tax
Capital Project Funds
Infrastructure Fund
Promenade TIF
Enterprise Funds
Water Works System
Sports Core
Internal Service Funds
Self Insurance
Garage
Capital Replacement
TOTAL ALL FUNDS
Projected
Cash Balance
12/31/2016
$ 15,212,248
3,949 ,994
728 ,192
4,849,254
245,081
2,461,266
627 ,590
461,320
149,237
1,462,827
$ 30,147,009
Budgeted
Revenues
2017
$ 24,054,500
1,288,000
209 ,200
6,752,900
455,600
9,345,500
3,377,485
3,203 ,000
744,675
667,330
$ 50,098,190
Budgeted
Expenditures
2017
$ 23,983,980
2,526 ,875
561,765
4,875,420
458,450
11,090,115
3,377,485
3,238,150
818,875
473 ,370
$ 51,404,485
$
2017
Change in
Cash
70 ,520
{1,238,875)
{352,565)
1,877,480
(2 ,850)
(1, 744,615)
{35,150)
(74 ,200)
193,960
Projected
Cash Balance
12/31/2017
$ 15,282 ,768
2,711 ,119
375,627
6,726,734
242 ,231
716,651
627,590
426,170
75 ,037
1,656,787
$ {1,306,295) $ 28,840,714
The Village of Oak Brook is projected to end December 31 w ith a healthy cash balance for all funds in the amount of $28 .8 million .
It's common practice for certain funds to reserve money over a period of time before expending them on major capital projects .
The use of proper planning ensures the Village does not incur debt .
Explanation on the major changes in cash:
General Fund -Th is fund provides the resources necessary to sustain the day-to-day activities and thus pays for public safety, library,
public works programs, and administrative expenses . The projected ending cash balance for 2017 is equal to 8.3 months, which is
over the six month reserve requirement as stated in the Village's financial policy.
Hotel/Motel Tax Fund -This fund is supported by the 3% Hotel/Motel Tax . This fund will utilize part of their cash reserves for 22nd Street
Illinois Transportation Improvement {ITEP) -Salt Creek -1294 . The project was started in 2016 and is expected to be completed during 2017 .
Motor Fuel Tax Fund -This fund is supported by the State assigned rate per capita and used for roadway maintenance and construct ion
purposes . This fund accrues until sufficient funds are available to do a major project. No motor fuel tax projects are scheduled for 2017 .
Infrastructure Fund -This fund is supported by the .5 % Non -Home Rule Sales Tax . No new majo r streets projects are planned for 2017.
Page 89 in the 2017 budget book shows a map of the streets to be improved .
Water Fund -Th is fund i s supported by fees fo r water sales and services and expends funds for the maintenance of the water system .
The 2017 budget includes $2 ,840,010 to i nstall new water meters and radio collectors.
***For more detailed fund descriptions, please refer to pages 39 and 40 in the 2017 Budget Book.
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