2014 Citizen PAFRGopal Lalmalani, President
Charlotte Pruss, Clerk
Donald N. Adler
John Baar
Michael Manzo
Mark M. Moy
Gerald Wolin
Asif Yusuf
About Village of
1
Oak Brook
Village of Oak Brook
2
Leadership
Planned Initiatives
3
for 2015
Village Fund Structure
4
Overview of
or
Audited Results
Balance Sheet
6
Cash and Investments
7
become Statement
8
Revenue Overview
9
Expense Overview
10
Financial Health of
Oak Brook and
Long -Term
Financial Planning
11
Iiey Statistics
12
Contact Information
13
A Message to the Village of Oak Brook
Dear Citizens of Oak Brook,
We are pleased to present the second Citizen's Annual Financial Report for
the fiscal year ended December 31, 2014. This report is designed to
provide transparency and accountability of Village financial information,
which is a Ivey organizational goal.
The Citizen's Annual Financial Report is designed to provide a summary
view of financial activities of the Village. It is a high level report for
citizens who wish to gain a general understanding and summary of the
Village's financial activities and position. The Village's fiscal year 2014
annual audit was completed on May 21, 2015 by Sildch LLP. All
information in this report can be found in greater detail in the 2014
Comprehensive Annual Financial Report (CAFR) for the Village. A copy of
the CAFR can be found on the Village's website www.oak-brook.org.
The Village of Oak Brook has received all three of the Government Finance
Officer's Association (GFOA) awards for local government finance:
• Distinguishedl3itd
get Presentation Award(3consecutiveyears)
• Certificate of Achievententfor Excellence in Financial Reporting (37
consecuitive years)
• Azoard for OntstandingAchievement in Citizen's (Popula)) Financial
Reporting (2013 was the fust award yea))
Our commitment to the GFOA award programs are based in our belief that
sharing financial information in formats consistent with the highest
standards in governmental financial reporting is the hest way to achieve
financial transparency.
If you have any questions about this document, please contact Sharon
Dangles, Assistant Village Manager/Finance Director, at the Village of
Oak Brook at 630/368-5072 oi"sdangles@oali-brook.org.
Sincerely,
Gopal Lalmalani
Village President
About the Village of Oak Brook
The Village of Oak Brook has been and continues to be one of the preeminent business centers in the
Chicago metropolitan area. Several Fortune 500 companies have facilities in the Village, including
the corporate headquarters of McDonald's Corporation. As a retail center, Oak Brook offers upscale
shopping, fine restaurants, and Oak Brook Center—one of the leading outdoor shopping centers in
the United States. These factors, as well as the performance of the Illinois economy, have enabled
the Village to operate without a real estate tax since its inception due to the sales taxes generated
from retail business activities. With sales taxes being the largest source of revenue, the local and
national economy has a significant effect on the amount of revenue the Village receives.
• Oak Brook has more than 7,800 residents across approximately 2,860 households.
• The Village provides many key services, including police and fire protection, water delivery, street
maintenance, public improvements, public library and recreation.
• The Village is composed of residential subdivisions, the Oakbrook Center Mall, office and retail locations,
restaurants, and numerous corporate headquarters.
• The Village of Oak Brook features 269 acres of open space, polo fields, golf courses, soccer fields,
swimming and tennis facilities, and other recreational opportunities not commonly found in a village of
this size.
• Only 16 miles west of downtown Chicago, Oak Brook is conveniently located along Interstates 88 and
294.
• Oak Brook feeds into five outstanding elementary school districts: Butler District 63; Downers Grove
District 68; Elmhurst District 206; Hinsdale District 181; and Salt Creek District 4B.
One aspect of life in Oak Brook that we are proud of is the wide range of entertainment and
recreational opportunities available in our community. Whether you're participating in an Oak
Brook Park District activity, watching a play at the Mayslake Peabody Estate, attending a Polo
match, o• jogging down the Oak Brook Pathway System, there is something for everyone to enjoy.
Village of Oak Brook
2014 Quick
Facts
Population
7,883
Outstanding Debt-
$46 million
Other Lang -Term
Liabilities
$2.3 million
Total Annual Budget
.$479million
Employees
13OFT, 36PT
Residentlalstreets
49 miles
Building Permits
837
Water Mains
105miles
Traffic Violations
2,986
Average Library Daily
265
Circulation
Golf Rounds
33,861
Bath d Tennis Club
338
Memberships
Village of Oak Brook Citizen's Annual Financial Report
10
.Outstanding debt of $0.8 million is for the Nest Wing Expansion ofVillage Hall, for which the last paynnent is in 2017.
$3.8 miltion is a nate paymble to the 2005 Tax IncrementFinancing (TIF) District located at the Promenade (22nd St. and
Meyers Rd.). The TIF note it not a general obligation to the Pillage and it expires in 2024. Repaynient of the note is
limited to the availability of pledged tarns and 20% of incremental sales lax;.
Village of Oak Brook Leadership
The Village of Oak Brook operates under the Trustee/Village form of government. The
Village is governed by our elected Village President and a six -member Board of Trustees—
each elected at large for a four-year term of office. The Village Clerk is elected for a four-year
term, attends meetings of the Village Board, keeps its minutes, and is the official custodian of
Village records. Elections are held biennially, during odd -numbered years, on the first
Tuesday in April.
The Village Board's primary function is policy making. The Village President, with the
consent of the Board, appoints a Village Manager to administer daily administrative
operations of the Village. The Village President presides over meetings of the Board, and
selects and removes appointed officers of various boards, commissions and committees with
the consent of the Board.
Elected Officials at December 31, 2014
Gopal Lalmalani, Charlotte Pruss,
President Village Clerk
Donald N. Adler Sohn Baar Michael Manzo
Mark M. Moy Gerald Wolin AsifYusuf
Village of Oak Brook Citizen's Annual Financial Report
Planned Initiatives icor !20 15
• Continue streetseape improvement program.
• Support community events to build a sense
of community.
• Maintain quality and appearance of Village
facilities and infrastructure.
• Establish and conduct a Citizens Fire
Academy.
• Facilitate communication that informs,
engages and builds trust and community
connection.
Build
Civic Pride
in
OakBrook
Maintain
Conservative
Fiscal
Policy
• Continue efforts with other municipalities to
protect Slate revenues and oppose unfunded
mandates.
• Utilize actuarial studies, explore service
needs, and project revenues to establish stable,
long-term police and file pension funding.
• Avoid new faxes and fees.
Maintain and
Enhance Village
Services to
Residents
STRATEGIC
GOALS
OFOF THE
VILLAGE
BOARD
Employee
Engagement
• Update strategic plans and continuously monitor
goal performance.
• Complete Village survey.
• Research and implement (he acceptance of credit
cards for Village services.
• Complete the redesign of the Village's website.
• Develop an Online Request Tracker where
Citizens can input their concerns and requests.
Promote • Continue cooperation
Economic with the Greater Oak
Development Brook Chamber and
business community.
• Update the Village
building and zoning
codes.
I • Explore grant
opportunities to update
the Village's
Comprehensive Plan.
• Develop more formal orientation program
for new employees.
• Improve Village facilities in the area of
safety, technology, functionality, and overall
cleanliness.
Village of Oak Brook Citizen's Annual Financial Report
Enhance
Transportation
Access alit]
Facilities
• Construct pcdesh ian access ways from
surrounding office buildings to Oakbrook
Center.
• Install gateway signs for key locations
within Village boundaries.
Village Fund Structure
Like other local governments, the Village of Oak Brook utilizes find accounting. Fund
accounting segregates related accounts and activities into separate finds to ensure and
demonstrate compliance with legal and regulatory requirements. Village finds can be classified
in three categories: governmental funds, business -type funds, and fiduciary fiends.
Governmental finds are used to account for all or most of the Village's general activities,
including general administration, public safety, highways and streets, library, and community
development. The General Fund is used to account for and report all financial resources not
accounted for and reported in another fiend.
Business -type finds are used to account for activities similar to those found in the private sector,
where the determination of net income is necessary or useful for sound financial administration.
Goods or services from these activities can be provided to either outside parties (enterprise
funds) or to other departments or agencies primarily within the government (internal service
funds) with costs being recovered through user -fees and charges.
Fiduciary finds are used to account for assets held on behalf of outside parties, including other
governments, or on behalf of other funds within the government.
General Fund
Special Revenue Funds
—Hotel/Motel Tax
Motor Fuel Tax
—Foreign Fire Insurance
Tax
Capital Projects Funds
—Infrastructure
—Promenade TIF
Enterprise Funds
—Waterworks System
—Sports Core
Internal Service Funds
—Self -Insurance
—Garage
—Capital Replacement
Village of Oak Brook Citizen's Annual Financial Report
Trust Funds
—Police Pension
—Fire Pension
Overview of Audilted Results
• For the year ending December 31, 2014, the Village's assets exceeded liabilities by
$118.7 million (net position).
• The governmental activities (general government, public safety, highways and
streets, library and conmuuiity development) reported a total net position of $84A
million, which is an increase of $2.1 million, or 2.6%, in comparison to the prior year.
The unrestricted portion of the net position is $12.1 million or 14.5% of the total. The
unrestricted portion is an indicator of the Village's clay -to -day financial security.
• The business -type (for profit) activities (water and sports core) reported a total net
position of $34.8 million, which represents no change fi om last year. Approximately
10.8% of the total, or $3.7 million is unrestricted.
• The Village's total net position increased by $2.1 million, or 1.8% compared to the prior
year.
• The Village had a total of $15.8 million in its unrestricted net position.
• Total revenues remained unchanged compared to the prior year.
• Total expenses increased $2.4 million, or 6.9%, in comparison to the prior year.
Village of Oak Brook Citizen's Annual Financial Report
Balance Sheet
The Statement ofNetPosition reports information on all of the Village's assets and
liabilities, with the difference reported as its "net position." Net position measures the
resources (cash, investments, receivables, capital assets, etc.) of the Village and any claims
(payables; deposits, debt, etc.) against those resources. Over time, increases or decreases in
net position may serve as a useful indicator of whether the financial position of the
Village is improving or deteriorating. The table below shows that, as of December 31,
2014, assets exceeded liabilities by $118.7 million.
The largest portion of the Village's net position, which is 77%, or $91.3 million, reflects its
investment in capital assets, less any outstanding debt used to acquire those assets. The
Village uses these capital assets to provide services to its residents. Consequently, these
assets are not available for future spending. An additional portion of the net position,
approximately 9.8%, or $11.6 million, is subject to external restrictions on how it may be used.
The remaining 13.3%, or $15.8 million represents unrestricted net position which may be used
to finance the ongoing obligations to its citizens and creditors.
Governmental
Business -Type
Total Primary
Activities
Activities
Government
Total
2014
2013
2014
2013
2014
2013
Change
Current and Other Assets
$32.8
$31.3
$4.4
$5.3
.$372
$36.6
1.6%
Capital Assets
61.6
60.4
30.6
29.6
92.2
90,0
2.4%
Total Assets
$94.4
$91.7
$35.0
$34.9
$129.4
$126.6
2.2%
Long -Term Liabilities
$6.8
$6.7
$0.1
$0.1
$6.9.
$6.8.
1.5%n
Other Liabilities
3.2
2.7
0.6
0.5
3.8
3.2
18.3%
Total Liabilities
$10.0
$9.4
$0.7
$0.6
$10.7
$10,0
7.0%
Net Investment in
Capital Assets
$60.7
$59.3
$30.6
$29.6
$91.3
$88.9
2.7%
Restricted
11.6
9.7
-
-
11.6
9.7
19.6%
Unrestricted
12.1
13.3
3.7
4.7
15.8
18.0
-12.2%
Total Net Position
$84.4
$82.3
$34.3
$34.3
$118.7
$116.6
1.8%
Q
Village of Oak Brook Citizen's
Annual
Financial Report
Summary on Village Cash and llnvestments
The foundation of the Village's financial planning is centered on the Village Board's well
publicized policy of maintaining a cash and investments reserve in the General Fund that
meets or exceeds six months of annual operating expenses. The six month policy level was
established due to the Village not having the predictability of real estate tax revenue and the
fact that nrost of its general revenues are collected by the State (sales and telecommunications
tax) having a three month delay. This conservative policy ensures the Village will have
sufficient funds on hand to operate in an emergency situation as well as having sufficient time
to address any economic downturns.
As ofDecember 31, 2014, the Village had $28,681,800 in cash and investments on hand, an
increase of $1,307,038 from December 31, 2013. The General Corporate Fund cash and
investments balance of $12,288,453 is equal to 6.9 months of operating expenses. Cash and
investments by fund was as follows:
Water, gs.7 Self -Insurance,
Bo.7
PromenadeTlF� Gaeage, Ood
Equip,... // {
Replacement' gss/
Wasas.,.
For Fir.
Tnsm•ance Ta>, ports Core, bo.s
®o.s
MotorFnel
Toa, ql.o otel/Afoterf.,
;s.s
The Village's overall cash and investment balance is made up of various sources. As of
December 31, 2014, the Village's cash and investment portfolio consisted of
Gm: & Agency
Obligations, ®ss
Corporate Bouds,
6G.1
CAec(cing,$o.7
inatillions
Village of Oak Brook Citizen's Annual Financial Report+
Income Statement
The Statement of Revenues, Expenses and Changes in Net Position reports all financial
activity for the fiscal year ended December 31, 2014.
This statement presents high-level summary information about how the Village's net position
changed during the fiscal year as a result of all financial activity (i.e., revenues and expenses).
Total revenues remained unchanged compared to the prior year. The Village showed
increases in sources such as sales tax, utility/telecom tax, and hotel/motel tax, but showed
offsetting decreases in charges for services, grants and other miscellaneous revenue sources.
Total expenses increased $2.4. million, or 6.9%, compared to the prior year due to increases in
personnel and operation and contractual costs. The Village's net position has increased 1.8%
since December 31, 2013.
Change in Net Position
Net Position, January 1
Net Position, December 31
$2.1 $3.8 $- $0.7 $2.1 $4.5 -53;3%
82.3 78.5 34.3 33.6 116.6 112.1 4.0%
84.4 82.3 34.3 34.3 118.7 116.6 1.8%
Village of Oak Brook Citizen's Annual Financial Report
Govermnental
Business -Type
Total Primary
Activities
Activities
Government
Total
2014
2013
2014 2013
2014
2013
Change
Revenues
Program Revenues
Charges for Services
$3.1
$3.2
$10.1 $10.1
$13.2
$13.3
-0.8%
Grants and Contributions
0.7
0.9
- -
0.7
0.9
-22.2%
General Revenues
Sales and Local Use Taxes
17.7
17.3
- -
17.7
17.3
2.3%
Utility Taxes
5.2
5.0
- -
5.2
5,0
4.0%
Hotel/Motel Taxes
1.0
1.0
- -
1.0
1.0
0.0%
Intergovernmental
0.8
0.8
- -
0.8
.08
0.0°%
Transfers
(o.5)
(0.2)
0.5 0.2
-
-
0.0%
Other
0.5
0.3
-
0.5
0.8
-37.5%
Total Revenues
$28.5
$28.8
$10.6 $10.3
$39.1
$39.1
0.0%
Expenses
General Government
$4.5
$4.3
$- $-
$4.5
$4.3
4.7%
Public Safety
14,7
13.7
- -
14.7
13.7
7.3%
Public Works
4.9
4.8
- -
4.9
4.8
2.]%
Culture and Recreation
2.0
1.8
- -
2.0
1.8
l t.I %
Waterworks System
-
-
7.0 6.3
7.0
6.3
11.1%
Spots Core
-
-
3.6 3.3
3.6
3.3
9.1%
Interest on Long -Term Debt
0.3
0.4
- -
0.3
0.4
-25.0%
Total Expenses
$26.4
$25.o
$10.6 $9.6
$37.0
$34.6
6.9%
Change in Net Position
Net Position, January 1
Net Position, December 31
$2.1 $3.8 $- $0.7 $2.1 $4.5 -53;3%
82.3 78.5 34.3 33.6 116.6 112.1 4.0%
84.4 82.3 34.3 34.3 118.7 116.6 1.8%
Village of Oak Brook Citizen's Annual Financial Report
Revenue Overview
2014 Revenues $39,174,915
Charges£or
Services as.6`.
Hotel/Motel
s, 7%
Grants 1.8%� Other 1.4%
all,
46.1%
Sales Tax
$17,678,361
Sales tax covers all the various taxes imposed under the Retailers Occupation Tax, the Service Occupation tax
and the Use Tax Act. Every business conducting revenue operations must pay sales tax to the State of Illinois.
The Village is paid according to the amount of revenue the businesses of the municipality contributed. The
Village currently receives 1.50%.
Utility/Telecom Tax
5,203,835
The Village taxes telecommunications, natural gas and electricity. Electricity and gas are based on usage,
therefore, revenues will fluctuate with consumer usage and weather conditions. The Village receives 5% tax
from NICOR and a 10 -tiered formula based on kilowatts used from Commonwealth Edison.
Taxes are also imposed on interstate or intrastate telecommunications originating or received in the Village by a
person at a rate of 6% of the gross charges.
Hotel/Motel Tax
1,049,631
Tax imposed upon the use and privilege of renting rooms in a hotel or motel within the Village. The Village
imposes a 3% tax of which I% is used to promote overnight stays and 2% for beautification in the hotel district.
Intergovernmental
754,748
Amounts received from other governments for support of particular functions or for general financial support.
Charges for Services 13,248,936
Charges imposed for providing current services. Total charges for services is comprised of: Water $7,013,600,
Sports Core $3,147,012, and Governmental $3,088,324.
Grants 706,146
Funds received from federal and state agencies to assist the Village in offsetting expenditures related to various
programs.
All Other Revenue Sources 533,264
Consists of Licenses, Permits, Franchise/IMF Fees, Fines, Investment Income, and Other
Revenue.
k-3
Village of Oak Brook Citizen's Annual Financial Report
Expense Overview
9,014 Expenses
Waterworks
System max
Culture and
Recreation5.6
Sports Core
18.9%
$37,1139984
General.
terest 0.8%
Government
IV 12.1%
General Government
$ 4,475,510
Includes administrative services (Legislative and General Management, Human Resources, Finance,
Information Systems, and Community Development).
Public Safety
14,723,265
Includes police and fire protection, which accounts for 40% of expenses.
Public Works
4,921,003
Includes Public Works administration, buildings and grounds, forestry, snow removal and streets
services.
Culture and Recreation.
2,031,086
Includes Library services and Hotel/Motel expenses to increase overnight stays in hotels within the
Village.
Waterworks System
7,043,604
Includes water service and other capital outlay.
Sports Core
3,577,945
Includes all sports core operations (Pool & Tennis, Banquet Facility, Soccer, and Golf Operations).
Interest 341,571
Includes interest costs on all Village governmental long-term debt, including installment contract
and capital leases.
$ 37,113,984
Village of Oak Brook Citizen's Annual Financial Report
Financial Health of ®ah Brook
and Long Term Financial Planning
In order to ensure the Village continues to meet its immediate and long-term service goals,
several financial policies and procedures have been implemented by management. Highlighted
are some of the more pertinent policies the Village followed in Fiscal Year 2014:
• The Village is committed to healthy find balance reserves and has made significant
progress to that end by maintaining a seven-month reserve, which is above the Village's
six-month reserve policy. The projected 2015 ending cash balance is 6.9 months of
operating expenditures.
• As required by Public Act 97-0609, the Village posted employee compensation data for all
employees who receive compensation greater than $75,000.
• Staff and the Village Board will begin to update its Strategic Plan this summer.
• The Finance Department prepared and reviewed monthly revenue, expenditure and cash
balance reporting for all funds with particular focus on the General Fund (main operating
find of the Village) to the Village Board. These financial reports ensure the Village Board
is made aware of any variances from the appropriated budget. (The budget document was
revised and made easier to understand. The Village received the GFOA Budget Award in
2013,.its first since 1999.) _
• There has been much discussion as it pertains to pensions and the need for pension reform
in the State of Illinois. In 2011, there were changes in the Police and Fire pension
legislation that 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 some relief, however, additional measures are
necessary in order for the Village to meet its future pension obligations. The Village
Board and staff continue to actively address the pension obligations of the Village by:
Hiring Foster and Foster, an actuarial firm, in early 2015 to perform a study on the long-
term financial impact of public safety pension costs; increasing the Village's contributions
to the public safety pension fixnds. Village pension contributions have increased 48.7%
($2.5M to $3.7M) over the last five years, and increased 137.8% ($1.6M to $3.7M) over the
last ten years; the Board has taken trips to Springfield in addressing the need for pension
reform; and will continue to monitor the pensions during its Strategic Planning Process
this Summer on ways to pay down the unfunded liabilities of the Village's defined pension
benefit program.
• Revenues came in consistent with last year. Sales tax increased $0.4 million, but was offset
by decreases in other sources.
• At December 31, 2014, the Village's General Fund reported a $0.3 million decrease to fund
balance (difference between assets and liabilities) to $16.1 million, from $16.4 million at
the beginning of the year.
Village of Oak Brook Citizen's Annual Financial Report
Summary of the Village's Key Statistics
Police
Physical arrests
2014
2013
2012
Population (estimated)
7,883
7,883
7,883
Income per capita
$131.,719
$131,719
$131,719
Debt per capita
683
636
907
DuPage County Unemployment Rate
5.7%
7.5%
7.3%
Property tax rater`
3.8389
3.5871
3.2026
Estimated retail sales
$1,209,120,800
$1,110,317,900
$1,118,547,800
Total sales tax receipts—cash basis
$ 17,341,263
$ 16,812,799
$ 16,280,075
Police
Physical arrests
196
178
234
Parking violations
306
501
636
Traffic violations
2,986
2,897
3,137
Fire
EMS incidents
1,321
1,049
912
Fire incidents
742
667
656
Communications Center (DUCOMM)
Police calls dispatched
19,853
18,552
12,696
Fire/EMS calls dispatched
2,448
2,294
2,071
Library
Total circulation
90,485
93,300
91,017
Total holdings
131,973
131.,658
128,343
Community Development
Building permits issued
837
811
770
Estimated construction value
$ 110,922,4.95
$ 131,935 998
$ 76,987,646
Inspections
2,648
2,617
2,311
Sports Core
B&T recreation memberships
338
347
363
Social memberships
82
68
67
Total events
72
66
56
Golf memberships
14-3
146
154
Total golf rounds
33,561
34,670
38,637
For more information, please refer to the Statistical section of the Village's annual CAFR.
*Individual property tax rates may vary depending on school district boundaries.
Village of Oak Brook Citizen's Annual Financial Report
The Village is required to perform an audit of its finances each year. Historically, the
Village has exceeded minimum reporting and disclosure standards including the
production of a CAFR for 37 consecutive years in accordance with guidelines published by the
Government Finance Officers Association. The 2014 CAFR, along with the 2015 Adopted
Budget and many other financial reports, can be found on the Village's website at ww�v.oak-
brook.org.
If you have any questions concerning this report or would like to offer any ideas or
suggestions for improvement, please feel free to contact Sharon Dangles, Assistant Village
Important Numbers
and Addresses
Village Hall
630/368-5000
1200 Oak Brook Road
Oak Brook, IL 60523
Fire HQ
(Non -Emergency)
630/368-5200
Police HQ
(Non -Emergency)
630/368-8700
Public Works
630/368-5270
For Police or Fire
Emergencies
Dial 911
Management Team
Village Manager
Riccardo Ginex
rginex@oak-bi ook.org
Assistant Village Manager/
Finance Director
Sharon Dangles
sdangles@oak-brook.org
oak-brook.org
Community Development Director Sports Core Director
Robert Rallien, Jr. Trey Van Dyke
rkal lien@oak-brooh.ong tvandyke@oalibrook.org
Fire Chief Police Chief
Mari y Liss Janes Rroger
bl iss o)nak-brook.org ,jluliger@oak-brook.org
Public Works/Engineering Director Library Director
Michael Hullihan Sue Madorin
mhullihan@oak-brook.org smadorin@oak-brooh.org
IT Director
Jim Fox
Village of Oak Brook Citizen's Annual Financial Report