2018 Budget Executive SummaryVillage of Oak Brook
Executive Summary
2018
Annual Budget
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For the Fiscal Year
January 1, 2018 - December 31, 2018
Village of Oak Brook, Illinois
1200 Oak Brook Road
Oak Brook, Illinois 60523
www.oak-brook.org
VILLAGE OF OAK BROOK, ILLINOIS
Table of Contents
Annual Budget Executive Summary
Fiscal year 2018
BudgetMessage...........................................................................
Village Mission, Vision, and Value Statements ............................
StrategicPlan................................................................................
OrganizationalChart.....................................................................
Personnel Organization Chart ......................................................
Financial Organization Chart ........................................................
Cash and Investments Analysis ....................................................
Revenue Summary Graph by Fund ...............................................
Revenues by Major Type Graph ...................................................
Expenditures Summary Graph by Fund .......................................
Expenditures by Major Type Graph .............................................
Village of
Oak Brook
1200 Oak Brook Road
Oak Brook, IL 60523-2255
Website
www.oak-brook.org
Administration
630.368.5000
FAX 630.368.5045
Community
Development
630.368.5101
FAX 630.368.5128
Engineering
Department
630.368.5130
FAX 630.368.5128
Fire Department
630.368.5200
FAX 630.368.5251
Police Department
630.368.8700
FAX 630.368.8739
Public Works
Department
630.368.5270
FAX 630.368.5295
Oak Brook
Public. Library
600 Oak Brook Road
Oak Brook, IL 60523-2200
630.368.7700
FAX 630.368.7704
Qak Brook Sports Core
Bath & Tennis Club
700 Oak Brook Road
Oak Brook, IL 60523-4600
630.368.6420
FAX 630.368.6439
Golf Club
2606 York Road
Oak Brook, IL 605234602
630.368.6400
FAX 630.368.6419
December 12, 2017
Village President and Board of Trustees
Village of Oak Brook
President Lalmalani and Trustees:
We are pleased to submit the Municipal Proposed Budget for the Village of Oak Brook
for the fiscal year beginning January 1, 2018 and ending December 31, 2018. The
FY2018 Annual Budget represents the financial plan of the Village for the coming fiscal
year and also serves as the Village's financial policy document, operations guide and
communication device.
INTRODUCTION
The Village of Oak Brook is a community with a population of 7,883 located
approximately 15 miles west of the Chicago Loop, near the geographic center of the
seven -county Chicago metropolitan area. Oak Brook was incorporated on February 21,
1958 by Paul Butler and has operated as a non -home rule municipality.
The Village of Oak Brook operates under the Village form of government with an
elected Village President and six (6) Trustees. Operational management is provided by
a professional manager appointed by the Board of Trustees along with a team of
department directors, carrying out Village policy through its operation of departments
and programs.
The Village of Oak Brook operates under the Budget Officer Act as outlined in Chapter
24, Section 8-2-9 of the Illinois Compiled Statutes, as revised. The Act requires the
Village President and Board of Trustees to adopt the annual budget prior to the
beginning of the fiscal year to which it applies and provides that the budget shall serve
as the Village's annual appropriation ordinance. The Village is required to make the
budget document available for public inspection at least ten days prior to passage.
Not less than one week after publication of the budget document's availability, and
prior to Village Board approval, the President and Board of Trustees are required to
hold a public hearing on the budget. After approval of the budget, the Village Board
may amend the originally approved budget in the form of budget amendments.
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. During 2017, the goals
were reviewed and updated through fiscal year 2018. 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 2018 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 eleven (11) 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, 2017 as reported in the audited
financial statements as of December 31, 2016.
BUDGET PROCESS
The Village's FY2018 budget process began in mid -2017 with the discussion of the status of the
2016 — 2017 Strategic plan and ideas for updating the plan through 2018. 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 2016-2018. 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 meeting 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, the FY2018
budget document was drafted.
The 2018 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 2018 Budget.
Statements summarizing each objective are found on the Program Summary page that
accompanies each Program Budget.
Ordinance 2011 -FI -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 general operations. The Village does
receive a small amount of real estate tax revenue, but this for property contained within the
Promenade Tax Increment Financing (TIF) District and used to repay the TIF bondholders. A
combination of operating revenues and installment contract proceeds will be used to fund
capital projects. The assumed issuance of $2,475,165 of installment contract certificates in
FY2018 will be used to fund the Police Department remodeling project. Enterprise activities are
budgeted to operate on a self-supporting basis.
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 2017, the General Corporate Fund cash and investments balance is projected to
be $16.9 million or 9.2 months of operating expenses. The projected ending cash balance for
2018 in the General Corporate Fund is $16.9 million or 9.1 months of operating expenses. The
General Corporate Fund 2018 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.
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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 2007 to
$3.5 million in 2016, or 218%. Pension contributions were budgeted at $3.8 million in
fiscal year 2017. 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 2017 using Scale AA was budgeted in 2018 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 2018 actuary
report will be presented to the Village Board in September and retroactively applied as
of January 1, 2018. Total contributions to the Police and Fire Pension Funds are
budgeted in 2018 at $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 exact economic impact of
McDonald's corporate move is still being determined, but assumed decreases were
factored into the 2018 budget as a result. Although the Village is losing McDonald's, it
has gained Duchossois Group, Midwest Orthopedics, Hyatt House, and other businesses
over the past year. The Village must continue to monitor the changing economic
climate and plan future budgets accordingly.
3. A number of items within the State of Illinois 2018 Budget have an impact on Oak Brook.
The State's 2018 budget includes a 10% cut in Local Government Distributive Fund
(LGDF) disbursements to local governments. The Oak Brook 2018 budget was prepared
using the assumption that this reduction will continue into the State's 2019 budget. The
impact on Oak Brook is projected to be nearly $80,000 in lost revenue to the General
Fund. Additionally, the State is charging a 2% tax collection fee on locally administered
taxes. This is applicable to the Village's Non -Home Rule Sales Tax that is recorded in the
Infrastructure Fund. The impact on Oak Brook is projected to be nearly $100,000 in lost
revenue to the Infrastructure Fund.
4. 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
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order to prepare for unforeseen circumstances related to the on-going implementation
of the ACA.
5. Funding of Capital Improvements at the Sports Core, Village municipal buildings, vehicle
replacements, and water main replacements continue to be a challenge to prioritize and
address all of the funding needs. Facility studies remain ongoing 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 2018. 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.
The Village completed a study of its vehicle fleet maintenance and replacement during
2017. Staff is in the progress of implementing changes identified in this study.
The Village has taken steps in the right direction and continues on the path to long-term
financial strength by focusing on lean principles, strong financial management, and leadership
to accomplish its vision and mission. The 2018 Budget continues to be a conservative financial
plan, while making strategic investments in capital with the utilization of General Corporate
Fund reserves.
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Total 2018 budgeted revenues for all funds amount to $52,261,585 and total 2018 budgeted
expenditures for all funds amount to $56,240,155. The following graph presents total revenues
and expenditure by fund type.
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VILLAGE OF OAK BROOK
TOTAL REVENUES AND EXPENDITURES
BY FUND TYPE
■ Revenues ■ Expenditures
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The 2018 expenditure budget includes capital expenditures in the amount of $12,953,545, including
engineering costs. These expenditures are funded by various sources, such as Sales Tax revenues,
debt instruments, and available fund balances.
OVERVIEW OF REVENUES
The proposed 2018 budgeted revenues are $52.3 million, an increase of $2.2 million, or 4.3%,
from the 2017 Budget. This is mainly due to the issuance of $2.5 million in installment contract
certificates in 2018 for the Police Department remodel project. The proposed 2018 General
Fund Revenues (main operating fund) totals $26.2 million, an increase of $2.1 million over the
2017 budgeted revenues, or 8.7%. This is mainly due to the issuance of installment contract
certificates.
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 $12.5
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million for 2018, which is $0.6 million, or 4.6%, less than the 2017 Budget amount and down
$43,875, or 0.4%, from the 2017 projected amount. The 2018 budgeted sales tax takes a
conservative approach to growth due to various businesses entering and leaving the Village, as
well as an overall softening of brick and mortar sales. The 2018 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 2018, $5.6 million is
estimated, which is $0.4 million, or 7.0% under the 2017 Budget amount and $0.1 million less
than the projected 2017 amount. The decrease is primarily due to the 2% collection fee
imposed by the State of Illinois. The Oak Brook Promenade sales tax revenue for 2018 is
budgeted for $102,500, which is an increase of $2,000, or 2.0% over the 2017 budgeted
amount.
Utility/Telecommunications tax, which is the second largest source of revenue in the General
Corporate Fund, is expected to increase by $154,250, or 2.7% in 2018 compared to the 2017
budget, but down $215,985 compared to the 2017 projected balance primarily due to
McDonald's (one of the Village's largest employers) leaving the Village.
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 7% increase in the water user rate is projected for 2018
for purposes in the budget. The water revenues are based on normal usage, which will
generate $9.9 million. Water revenues are largely affected by weather conditions and
consumer usage.
• For the 2018 Budget, Sports Core operating revenues are budgeted at $3.4 million.
Sports Core revenues increased by $0.2 million compared to the 2017 Budget due to
increased programming at the Bath and Tennis Club and increasing golf rounds.
Sports Core total revenues includes reimbursements from the Infrastructure Fund for
$24,000 and Water Fund for $8,000. The Infrastructure and Water Fund
reimbursements are for lease land charges. The Streets 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. 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 $1.4 million for the 2018 budget, which is
primarily Hotel/Motel taxes. Hotel/Motel taxes are budgeted for an increase of $74,000
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compared to the 2017 Budget, and relatively flat with the 2017 projected amount. The
increase from the 2017 Budget is due to the opening of the Hyatt House hotel bringing
an additional hotel into Oak Brook. Tax revenue from existing hotels is expected to be
flat or decrease slightly in 2018. 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
$340,940 has been budgeted for 2018. 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. The 2018 budget
reflects a reduction in contributions from all funds due to the amount of cash on hand in
the Equipment Replacement Fund. During 2017, the Village had a study performed on
its vehicle fleet. Village staff is currently implementing recommendations from this
study that could reduce the amount of cash needed each year for vehicle replacements.
Additionally, the study noted that the Equipment Replacement Fund has more cash on
hand that possibly needed. The 2018 contributions to the Equipment Replacement
Fund represent using some of the available cash balance. It is possible that cash could
be transferred back to the contributing funds in the future as the results of the study are
reviewed and implemented.
OVERVIEW OF EXPENDITURES
The total spending in the proposed 2018 Budget is $56.2 million, an increase of $4.8
million, or 9.4%, from the 2017 Budget. This is mainly due to an increase in major capital
improvements in the General, Infrastructure, and Water Funds. The proposed 2018
Budget includes total General Fund expenditures of $26.2 million, which is an increase of
$2.2 million, or 9.0% compared to the 2017 Budget. This is primarily due to the Police
Department lockup remodel capital project. A Personnel Summary is included in the
Budget Summaries section of this book (page 108).
• The Illinois Municipal Retirement Fund (IMRF) Village contribution for 2018 increased
from 12.55% of payroll to 13.13%. Total budgeted IMRF contributions for 2018 are $0.7
million, an increase of $12,415 over the 2017 budgeted amount.
• Fire union increases are 2.5% effective January 1, 2018. The Police union and Public
works union contracts expire December 31, 2017 and negotiations are currently
underway. 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 2018 budget, which will be
dependent on the 2018 actual performance evaluation. Actual wage increases could be
lower than 3.5%.
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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, Village Attorney, and Human Resources. The Legal program
includes Labor Attorney fees of $60,000 budgeted for Police and Public Works union
negotiations. The Human Resources budget includes $30,000 for the implementation of a
tuition reimbursement program for employees seeking an advanced degree. The Risk
Management program reflects a decrease in liability insurance premiums in 2018. The liability
insurance budget has decreased from $470,000 in 2017 to $346,250 in 2018. This is due to the
use of an IRMA surplus balance in 2018 to offset annual premium costs. The Legislative and
General Management department underwent a reorganization that resulted in the reduction of
a full time Human Resources position.
Information Technology budget includes the continuation of two full time contracted
employees for a village -wide document imaging project and miscellaneous IT assistance for
$67,400. A part time IT position that was budgeted in 2017 was not filled and has been
eliminated in the 2018 budget. The contracted employees will assist with these duties as
necessary. A 10% portion of the IT Director's salary and benefits will continue to be allocated
to the Geographic Information System program in 2018.
The Employee Benefits program includes total insurance costs of $3,317,920, which is an
increase of $79,770 from the 2017 budget. The Village did not have an increase in costs at the
July 1, 2017 plan year start. The Public Works Union is members of the Local 150 health
insurance plan, which the Village contributes to on a monthly basis per the collective bargaining
agreement.
The Hotel/Motel program includes $690,000 in median/street lighting projects, pedestrian
access projects, and median plantings within the Hotel district. Additionally, the Hotel/Motel
program includes additional funding in the advertising budget to help increase the amount of
stays at the Village hotels.
Department 2 - Financial Services: This department includes all functions related to the
Village's financial management activities. Financial Management reflects an increase in
contractual services due to increases in the Village's audit and actuarial services agreements.
The Interfund Transfers program includes a cost reimbursement of $131,315 to Infrastructure
for administrative costs. The Installment Contract Debt Service program includes $262,500 for
issuance costs, principal, and interest on the new Police Department remodel debt issuance.
T.I.F. Note Debt Service includes $459,820 for interest and principal on the $4.25 million limited
obligation T.I.F Note that was issued early in 2008.
12
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.
Equipment Replacement has budgeted replacement the replacement of 10 vehicles at a total of
$614,205 for the Police, Fire, Public Works, and Development Services departments. Water
Operations reflects an increase of $396,465, or 7.0%, in DuPage Water Commission costs from
the 2017 Budget. Water meter replacements are budgeted to continue in 2018 for $2,350,220
and Reservoir A and B improvements are budgeted for $240,000. The Public Works
Management budget includes a charge of $164,865 to reimburse the General Corporate Fund
for common administrative costs and lease charges for land at the Sports Core. The Snow
Removal program reflects a decrease in the State salt contract, thereby decreasing chemical
costs to $51,575 from $82,000 in the 2017 Budget. The Municipal Buildings Improvements
budget includes $2,732,665 in capital improvements budgeted for 2018. The increase is
primarily due to the Police Department remodel project. The Public Works department
includes the hiring of two new positions and one seasonal position. The new Fleet/Facility
Maintenance Supervisor position will be split between the Garage Operations program and
Building Maintenance program and will oversee the daily operations of these functions. The
new Buildings Maintenance position will work primarily on the Sports Core facilities. The salary
will be charged to Sports Core programs with a cost reimbursement to the General Fund. The
new seasonal position will also assist in Sports Core building maintenance and will be
reimbursed by the Sports Core Fund.
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 2018 Engineering budget continues the outsourcing of the Village Engineering
function. The 2017 budget included the hiring of an in-house staff engineer that was not hired.
This position has been eliminated from the 2018 budget. The 2018 budget also includes the
transfer of one part-time permit clerk position from the Engineering program to the
Development Services Management program.
Department 5 — Library: The Library General Operations budget includes the elimination of a
vacant Circulation Supervisor position. This position was budgeted in 2017, but not filled.
Department 6 — Police: The Police Field Services program includes $7,900 for a new speed
enforcement trailer. Police Support Services includes DuComm fees of $468,650, a 1.7%
increase from 2017. Police pension contributions are budgeted at $1.8 million, an increase of
$42,320 or 2.4% compared to the 2017 budget. This amount reflects 100% of the actuarial
determined contribution amount.
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Department 7— Fire: Fire, Rescue, and EMS Operations includes a decrease in overtime of
from the 2017 budget to align the budget to historical spends. Fire gear for $21,875, LDH fire
hose for $10,000, and thermal imaging cameras for $7,500 are included in the 2017 capital
request. Emergency Medical Services program includes capital expenses of Zoll
Monitor/Defibrillator for $35,200, Zoll Auto Pulse CPR Units for $18,000, and AED Units for
$6,500. Fire pension contributions are budgeted at $2.1 million, an increase of $65,700 or 3.2%
compared to the 2017 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. This program includes a cost reimbursement to the General Fund for
Public Works maintenance staff. Swimming Operations continues to outsource the
management and staffing of this program. This program includes capital improvements of
$149,750 for items such as wading pool improvements, diving stand repairs, and
drainage/sanitary repairs. Tennis Operations reflects a decrease in commission payments due
to programming being handled by Sports Core staff. Open Fields includes $15,000 budgeted for
new siding on the soccer building. Golf Club General Operations includes capital requests of:
$15,000 for a new sign on York Road, $10,000 for clubhouse flooring, $15,000 for parking lot
drainage, and $25,000 for cart path replacement. The Golf Cart Operations program includes
$49,575 for the initial lease payment on a new golf cart fleet and $40,910 to purchase a utility
cart fleet. Golf Course Maintenance has $35,000 budgeted for tractors and mowers and
$45,000 for a new dump truck.
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%.
CAPITAL STRATEGY
During FY2018, 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 FY2018 budget process to identify capital
expenditure items that were to be included in the FY2018 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
14
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 2018 budget for capital projects is $12,953,545, an increase of $4.6 million,
or 55.3%, from the comparable figure in the 2017 budget. A complete listing of all capital
projects are found in the Budget Summaries section with a brief discussion on the major
projects by fund and program (pages 83-91).
"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 $2,475,165 for the Police
Department remodel project. Other significant capital items include: $50,000 for Village Hall
west wing carpeting, and $25,000 for a Fire Station 93 building study. A full list of all building
projects budgeted for 2018 can be found in this book on pages 83-84.
• Roadway Improvements - The budget includes $2.8 million for the annual Paving
Program in 2018. A description of the various projects can be found on page 86 of this
book.
• Water System Improvements - The budget includes the following significant items:
$2,350,220 to continue the installation of new water meters and radio collectors Village -
wide, $155,000 for a control valve at Reservoir A, and $85,000 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 87.
PROPERTY TAX POLICY
Sections 7 and 8 of Ordinance 2011 -FI -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
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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.
DEBT ADMINISTRATION
The Village's legal general obligation debt limit is 8.625 percent of Equalized Assessed Valuation
(EAV), or $123,230,720 based on January 1, 2016 EAV of $1,428,761,970. 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 was in December 2017.
The 2018 annual budget includes the issuance of $2,475,165 in installment contract certificates
to fund the Police Department remodel project. The Village intends to use General Corporate
Fund revenues to pay the annual debt service.
Total budgeted debt service activity for 2018 is as follows:
General
Corporate
Balance outstanding, January 1, 2018 $ 0
Estimated debt issued in 2018 2,475,165
Estimated principal retired in 2018 (185,000)
Balance outstanding, December 31, 2018 52,290,165
16
AWARD
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, 2017. In order to receive this award, a
governmental unit must publish a budget document that meets program criteria as a policy
document, as an operations guide, as a financial plan, and as a communications device. This
award is valid for a period of one year only. We believe our current budget continues to
conform to program requirements, and we are submitting it to GFOA to determine its eligibility
for another award.
CONCLUSION
We will continue to evaluate our operations to make certain we are providing services to our
citizens and corporate business partners as efficiently and economically as possible.
Department Directors will continue to review their organizational structures and operations for
opportunities of change that will result in improved service delivery.
In closing, I would like to thank the Village Board and Department Directors in partnership
through the Strategic Plan, for their continued commitment in making Oak Brook a great
community to live and work.
Respectfully submitted,
Riccardo F. Ginex
Village Manager
V.
Jason Paprocki
Finance Director
17
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.
Village President and Board of Trustees
October 13, 2015
18
VILLAGE OF OAK BROOK, ILLINOIS
Introduction
Strategic Plan
Fiscal Year 2018
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. During 2017, the Village reviewed and updated its Strategic Plan through
fiscal year 2018.
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
19
VILLAGE OF OAK BROOK, ILLINOIS
Introduction
Strategic Plan
Fiscal Year 2018
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
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.
Throughout this document, each department has developed specific goals and objectives. Those
goals and objectives are directly tied back to the overall Strategic Plan of the Village as a whole.
20
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VILLAGE OF OAK BROOK, ILLINOIS
Budget Summaries
Cash and Investments Analysis
Fiscal Year 2018
Projected
Budgeted
Budgeted
2018
Projected
Cash Balance
Revenues
Expenditures
Change in
Cash Balance
12/31/2017
2018
2018
Cash
12/31/2018
General Fund $ 16,905,374
$ 26,155,895
$ 26,151,500
$ 4,395
$ 16,909,769
Special Revenue Funds
Hotel/Motel Tax
3,307,585
1,370,000
1,386,065
(16,065)
3,291,520
Motor Fuel Tax
717,301
210,160
500,000
(289,840)
427,461
Capital Project Funds
Infrastructure Fund
7,145,446
6,291,130
8,823,640
(2,532,510)
4,612,936
Promenade TIF
277,313
487,750
463,910
23,840
301,153
Enterprise Funds
Water Works System
4,224,979
9,937,425
10,789,755
(852,330)
3,372,649
Sports Core
360,864
3,410,725
3,395,980
14,745
375,609
Golf Surcharge
552,820
123,500
-
123,500
676,320
Internal Service Funds
Self -Insurance
368,934
3,259,330
3,317,920
(58,590)
310,344
Garage
391,128
612,730
797,180
(184,450)
206,678
Capital Replacement
1,801,233
402,940
614,205
(211,265)
1,589,968
TOTAL ALL FUNDS
$ 36,052,977
$ 52,261,585
$ 56,240,155
$ (3,978,570)
$ 32,074,407
The Village of Oak Brook is projected to end December 31 with a healthy cash balance for all funds in the amount of $32.1 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 - This 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 2018 is equal to 9.2 months, which is
over the six month reserve requirement as stated in the Village's financial policy.
Motor Fuel Tax Fund - This fund is supported by the State assigned rate per capita and used for roadway maintenance and construction
purposes. This fund accrues until sufficient funds are available to do a major project. Funds will be transferred to the Infrastructure Fund
in 2018.
Infrastructure Fund - This fund is supported by the 0.5% Non -Home Rule Sales Tax. Funds are accumulated and used as major capital
projects occur. Page 86 shows a listing of major capital projects planned for 2018
Water Fund - This fund is supported by fees for water sales and services and expends funds for the maintenance of the water system.
The 2018 budget includes $2,350,220 to install new water meters and radio collectors.
***For more detailed fund descriptions, please refer to pages 41 and 42 in the 2018 Budget Book.
24
VILLAGE OF OAK BROOK, ILLINOIS
Budget Summaries
Revenue Graph by Fund
Fiscal Year 2018
Self Insurance Fund Garage
6% 1%
Golf Surcharge Fund
0%
Sports Core Fund
7%
Promenade Special
Allocation
1%
Infrastructure Fund
12%
it Replacement
Fund
1%
Motor Fuel Tax Fund �"""0'"'""' ""
0% 3%
Fund
6
25
2017
2017
Budget
2015
2016
Adopted
Projected
2018
%
Actual
Actual
Budget
Amount
Budget
Change
REVENUES
General Fund
$ 23,121,437 $
24,545,985
$ 24,054,500
$ 24,324,845 $
26,155,895
8.74%
Hotel/Motel Tax Fund
1,249,507
1,288,124
1,288,000
1,386,280
1,370,000
6.37%
Motor Fuel Tax Fund
196,807
208,149
209,200
210,365
210,160
0.46%
Infrastructure Fund
5,835,496
6,753,122
6,752,900
6,347,925
6,291,130
-6.84%
Promenade Special Tax Allocation
424,517
458,225
455,600
486,375
487,750
7.06%
Water Fund
7,689,735
8,824,759
9,345,500
9,645,670
9,937,425
6.33%
Sports Core Fund
3,674,673
3,416,720
3,377,485
3,417,955
3,410,725
0.98%
Golf Surcharge Fund
-
-
-
552,820
123,500
N/A
Self Insurance Fund
2,754,062
3,031,211
3,203,000
3,134,390
3,259,330
1.76%
Garage Fund
812,486
701,426
744,675
747,625
612,730
-17.72%
Equipment Replacement Fund
846,564
683,293
667,330
821,760
402,940
-39.62%
TOTAL REVENUES
$ 46,605,284 $
49,911,014
$ 50,098,190
$ 51,076,010 $
52,261,585
4.32%
25
VILLAGE OF OAK BROOK, ILLINOIS
Budget Summaries
Revenues by Major Type
Fiscal year 2018
. Other category consists of Licenses, Permits, Franchise/IMF Fees, Grants, Fines, Administrative Towing and Other Revenue.
2017 2017 Budget
2015 2016 Adopted Projected 2018 %
Actual Actual Budget Amount Budget Change
Sales Tax
2015 Actual ■ 2016 Actual
2017 Adopted Budget 2017 Projected Amount
x. 2018 Budget',
14,000,000
12,555,500
-4.51%
Non -Home Rule Sales Tax
5,637,241
12,000,000
5,982,000
5,703,750
5,563,000
-7.00%
10,000,000
325,654
354,829
355,000
385,020
8,000,000
8.45%
Utility/Telecommunications Tax
5,673,868
5,967,345
6,000,000
6,008,235
5,792,250
2.74%
Other Taxes
4,000,000
2,729,558
2,737,435
2,852,040
2,688,860
2,000,000
Charges For Services
5,302,480
5,358,532
5,557,955
0
5,226,100
-5.97%
Interest
167,900
255,569
203,400
380,195
302,250
48.60%
Installment Contract Proceeds
a+ a+
-
-
e'
2,475,165
a�K\
¢S,s+ \� °z
a+¢5 �`¢s
`¢`¢g ¢aa' O`.cea
¢cJ
2,474,715
2,936,095
2,470,820
-0.16%
Interfund Revenues
1,206,023
1,356,281
1,461,205
1,655,755
1,426,490
-2.38%
Water Sales & Services
7,629,436
8,726,169
9,270,500
a\¢
9,877,425
6.55%
°rte
�a �
P°c Lia
3,263,375
OFac
3,385,955
3,378,725
6.94%
Golf Surcharge
101,914
117,970
110,000
118,500
120,000
9.09%
TOTAL REVENUES
. Other category consists of Licenses, Permits, Franchise/IMF Fees, Grants, Fines, Administrative Towing and Other Revenue.
2017 2017 Budget
2015 2016 Adopted Projected 2018 %
Actual Actual Budget Amount Budget Change
Sales Tax
$ 12,346,857
$ 13,072,837
$ 13,148,500
$ 12,597,950 $
12,555,500
-4.51%
Non -Home Rule Sales Tax
5,637,241
5,991,262
5,982,000
5,703,750
5,563,000
-7.00%
Real Estate Taxes (Promenade TIF)
325,654
354,829
355,000
385,020
385,000
8.45%
Utility/Telecommunications Tax
5,673,868
5,967,345
5,638,000
6,008,235
5,792,250
2.74%
Other Taxes
2,725,024
2,729,558
2,737,435
2,852,040
2,688,860
-1.77%
Charges For Services
5,302,480
5,358,532
5,557,955
5,513,380
5,226,100
-5.97%
Interest
167,900
255,569
203,400
380,195
302,250
48.60%
Installment Contract Proceeds
-
-
-
-
2,475,165
N/A
Other
2,410,311
2,717,287
2,474,715
2,936,095
2,470,820
-0.16%
Interfund Revenues
1,206,023
1,356,281
1,461,205
1,655,755
1,426,490
-2.38%
Water Sales & Services
7,629,436
8,726,169
9,270,500
9,539,135
9,877,425
6.55%
Sports Core User Fees
3,078,576
3,263,375
3,159,480
3,385,955
3,378,725
6.94%
Golf Surcharge
101,914
117,970
110,000
118,500
120,000
9.09%
TOTAL REVENUES
46,605,284
$ 49,911,014
$ 50,098,190
$ 51,076,010 $
52,261,585
4.32%
26
VILLAGE OF OAK BROOK, ILLINOIS
Budget Summaries
Expenditure Graph by Fund
Fiscal Year 2018
Golf Surcharge
0%
Sports Core
6%
Water F
19%
Promenade Special
Allocation
1%
Infrastructure
16%
EXPENDITURES
General Fund
Hotel/Motel Tax Fund
Motor Fuel Tax Fund
Infrastructure Fund
Promenade Special Tax Allocation
Water Fund
Sports Core Fund
Golf Surcharge Fund
Self Insurance Fund
Garage Fund
Equipment Replacement Fund
Garage Fund
Self Insurance Fund 1%
6%
Motor Fuel Tax t ,.....
1%
it Replacement
Fund
1%
2%
Fund
5
2017 2017 Budget
2015 2016 Adopted Projected 2018 %
Actual Actual Budget Amount Budget Change
$ 21,975,283 $ 21,732,861 $ 23,983,980 $ 23,929,625 $ 26,151,500 9.04%
700,549
842,128
2,526,875
2,482,125
1,386,065
-45.15%
-
516,221
561,765
400,000
500,000
-10.99%
6,749,865
5,779,015
4,875,420
4,622,065
8,823,640
80.98%
422,862
439,158
458,450
458,340
463,910
1.19%
8,097,452
7,959,579
11,090,115
8,144,695
10,789,755
-2.71%
3,728,430
3,347,194
3,377,485
3,757,740
3,395,980
0.55%
-
-
-
-
-
0.00%
2,881,574
2,806,536
3,238,150
3,355,305
3,317,920
2.46%
739,343
515,780
818,875
703,550
797,180
-2.65%
489,133
588,171
473,370
523,185
614,205
29.75%
$ 45,784,491 $ 44,526,643 $ 51,404,485 $ 48,376,630 $ 56,240,155 9.41%
27
VILLAGE OF OAK BROOK, ILLINOIS
Budget Summaries
Expenditures by Major Type
Fiscal Year 2018
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
■ 2015 Actual ■ 2016 Actual ■ 2017 Adapted Budget ■ 2017 Projected Amount ■ 2018 Budget
Personnel Materials & Supplies Operational & Contractual Other Expenditures Capital
2017 2017 Budget
2015 2016 Adopted Projected 2018 %
Actual Actual Budget Amount Budget Change
Personnel
$ 19,565,491 $
20,471,034
$ 21,960,390 $
21,077,305 $
21,862,495
-0.45%
Materials & Supplies
1,839,997
1,559,233
1,907,545
1,673,015
1,632,560
-14.42%
Operational & Contractual
16,709,642
15,670,102
17,196,675
16,616,825
17,776,320
3.37%
Other Expenditures
3,051,107
3,343,634
1,999,185
2,193,735
2,015,235
0.80%
Capital
4,618,254
3,482,640
8,340,690
6,815,750
12,953,545
55.31%
TOTAL EXPENDITURES $ 45,784,491 $ 44,526,643 $ 51,404,485 $ 48,376,630 $ 56,240,155 9.41%
9.3