2018 Citizen PAFRVillage of Oak Brook, Illinois
Popular Annual Financial Report
For the Year Ended December 31, 2018
Table of Contents
About Village of
Oak Brook 1
Village of Oak Brook
Leadership 2
Fund Structure, Measure
Focus, and Basis of
Accountfng 3
Explanatfon, Analysis,
and Discussion of
Financial Statements 4-11
Village Sales Tax 12
Key Statfstfcs 13
A Message From the Village President
Dear Citfzens of Oak Brook,
We are pleased to present the Popular Annual Financial Report (PAFR) for the fiscal
year ended December 31, 2018. The PAFR is a high level report for citfzens who wish to
gain a general understanding and summary of the Village’s financial actfvitfes and
positfon. Informatfon contained in this report is a summarized version of the Village’s
official financial statements, the Comprehensive Annual Financial Report (CAFR). The
PAFR presents financial data on the same basis of accountfng as the CAFR, just in a
simplified manner.
The Village’s fiscal year 2018 annual audit was completed on May 21, 2019 by Baker
Tilly Virchow Krause, LLP. The CAFR is compliant with generally accepted accountfng
principles (GAAP) and has received an unmodified (“clean”) opinion from our auditors.
The full disclosure financial statement, CAFR, be found on the Village’s website.
The Village of Oak Brook has received all three of the Government Finance Officer’s
Associatfon (GFOA) awards for local government finance:
Distinguished Budget Presentation Award (7 consecutive years)
Certificate of Achievement for Excellence in Financial Reporting (41
consecutive years)
Award for Outstanding Achievement in Citizen’s (Popular) Financial
Reporting (5 consecutive years)
Our commitment to the GFOA award programs help ensure financial informatfon is
presented in a way that is consistent with the highest standards in governmental
financial reportfng.
In additfon, the Village maintains a digital platiorm powered by OpenGov that provides
unprecedented access to the Village’s finances. Financial informatfon is updated on a
monthly basis and dates back to 2008. OpenGov is a fully interactfve platiorm that
allows users to sort and filter financial data as they choose. Please visit http://
www.oak-brook.org/362/Open-Government for more informatfon.
The Village Board and I appreciate your input and contfnued commitment in making
Oak Brook a great community to live and work. If you have any questfons concerning
this report or would like to offer any ideas or suggestfons for improvement, please
contact Jason Paprocki, Finance Director, at (630) 368-5070 or email at
jpaprocki@oak-brook.org.
Sincerely,
Gopal Lalmalani
Village President
Popular Annual Financial Report
Village of Oak Brook, Illinois
Fiscal Year 2018
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
Village of Oak Brook
2018 Quick Facts
Populatfon 7,883
Per Capita Income $131,719
Median Home Value $784,700
Unemployment Rate 2.9%
Credit Ratfng Aa1
Total Cash and
Investments $42.8 million
General Fund Cash
and Investments $17.9 million
General Fund
Reserve (cash to 2019
budgeted operatfng
expenditures) 9.5 months
Outstanding Debt* $3.2 million
2018 Annual Budget $56.2 million
Employees (FTE’s) 128.0 FT, 24.5 PT,
37.2 Seasonal/
Contractual
About the Village of Oak Brook 1
The Village was incorporated February 21, 1958 by Paul Butler. Oak Brook is a community where impressive corporate
and retail centers, beautfful homes, lush parks, and forest combine to make a dynamic and invitfng atmosphere. Oak
Brook also offers an exceptfonal variety of actfvitfes to appeal to a broad range of interests which include; polo matches
at the Oak Brook Polo Grounds; a 18-hole championship Golf Club; Bath and Tennis Club facilitfes including a swimming
pool, a diving pool, tennis courts, and an event venue.
The Village of Oak Brook is located about 15 miles west
of the Chicago Loop, near the geographic center of the
seven-county Chicago metropolitan area. Excellent
transportatfon links are provided to all parts of the
greater metropolitan area by a network of tollways and
Federal and State highways which pass through or near
the Village. The Oak Brook area is generally bounded
on the north by the communitfes of Lombard, Villa
Park, Elmhurst and Oakbrook Terrace and on the south
by Downers Grove, Westmont, Clarendon Hills and
Hinsdale.
The Village places a great emphasis on interactfng with
local businesses, both existfng and potentfal. A large
portfon of the Village’s revenue stream is derived from
sales tax, which is crucial to the Village’s General Fund operatfng budget.
The Village is committed to upholding its mission, vision, and values through the six key goals outlined below:
*Consists of $3.1 million TIF note, which is
not an obligatfon of the Village. Note is
paid from available pledged sales and real
estate taxes of the Promenade TIF Fund.
The Village of Oak Brook operates under the Village form of government and 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 meetfngs of the Village Board, keeps its minutes, and is the official custodian of
Village records. Electfons are held biennially, during odd-numbered years, on the first Tuesday in April.
The Village Board’s primary functfon is policy making. The Village President, with the consent of the Board, appoints a
Village Manager to administer daily administratfve operatfons of the Village. The Village President presides over
meetfngs of the Board, and selects and removes appointed officers of various boards, commissions and committees
with the consent of the Board.
3
Village of Oak Brook Leadership 2
Village of Oak Brook Organizatfonal Chart
From left to right: Trustee Asif Yusuf, Trustee Moin Saiyed, Trustee Philip Cuevas, Village Clerk Charlotte Pruss, Village
Attorney Greg Jones, President Gopal Lalmalani, Village Manager Riccardo Ginex, Trustee John Baar, Trustee Michael
Manzo, Trustee Edward Tiesenga.
Management Team
Village Manager
Riccardo Ginex
Police Chief Public Works
James Kruger Doug Patchin
Fire Chief Library
Barry Liss Jacob Post
Informatfon Technology Golf Course
James Fox Sean Creed
Development Services Finance
Tony Budzikowski Jason Paprocki
Human Resources
Kathy Vonachen
Mission
The Village of Oak Brook will provide the community with excellent
local government services and the best educatfonal opportunitfes
that meet the needs of its citfzens and are delivered in a professional,
responsive, and fiscally responsible manner.
Like other local governments, the Village of Oak Brook utflizes fund accountfng. Fund accountfng segregates related
accounts and actfvitfes into separate funds to ensure and demonstrate compliance with legal and regulatory
requirements. Village funds can be classified in three categories: governmental funds, business-type funds, and
fiduciary funds.
Governmental funds are used to account for all or most
of the Village’s general actfvitfes, including general
administratfon, public safety, highways and streets,
library, and community development. Governmental
funds are categorized as: the General Fund, special
revenue funds, and capital projects funds. The General
Fund is used to account for and report all financial
resources not accounted for and reported in another
fund. Special revenue funds are used to account for and
report specific revenue sources that are restricted or
committed for specified purposes other than capital or
debt. Capital projects funds are used to account for and
report resources that are restricted, committed, or
assigned for capital outlay.
Business-type funds are used to account for actfvitfes similar to those found in the private sector, where the
determinatfon of net income is necessary or useful for sound financial administratfon. Goods or services from these
actfvitfes can be provided to either outside partfes (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 funds are used to account for
assets held on behalf of outside partfes,
including other governments, or on behalf
of other funds within the government.
The Village reports two Trust Funds, which
account for the resources of the Village’s
defined benefit pension plans. Financial
actfvity of fiduciary funds are not included
in governmental or business-type
actfvitfes.
The Village presents two types of financial
statements: the Government-Wide
Financial Statements and Fund Financial
Statements. In the Government-Wide
Financial Statements, the aggregate of all
Governmental and all Business-Type funds
are presented. The Government-Wide
Financial Statements and Business-Type
Fund financial statements are prepared
using the economic resources measurement focus and the accrual basis of accountfng. The Governmental Fund
Financial Statements are prepared using the current financial resources measurement focus and modified accrual basis
of accountfng.
Fund Structure, Measure Focus, and Basis of Accountfng 3
Depcreciation
Governmental = Not recognized. Entity-Wide/Business-Type -Recognized as an expense.
Capital Expenditures
Governmental = Recognized as expenditure.Entity-Wide/Business-Type = Recognized as an increase in capital assets.
Expenditure Recognition
Governmental = When the related liability is incurred, except for debt,
claims, judgements, compensated absenses, and pension expenditures.
Entity-Wide/Business-Type = When liability a is incurred or an economic
asset is used.
Revenue Recognition
Governmental = When revenues are measurable and available.Entity-Wide/Business-Type = When revenues are earned.
The Statement of Net Position (commonly known as the “balance sheet”) reports informatfon on all of the Village’s
assets, liabilitfes, and deferred inflows and outilows, with the difference reported as its “net positfon.” Net positfon
measures the resources (cash, investments, receivables, capital assets, etc.) of the Village and any claims (payables,
deposits, debt, etc.) against those resources. Over tfme, increases or decreases in net positfon may serve as a useful
indicator of whether the financial positfon of the Village is improving or deterioratfng. The table below shows that,
as of December 31, 2018, the Village’s total net positfon was $85.5 million, which is a decrease of $0.5 million from
2017. The $0.5 million decrease is a result of a $4.7 million reductfon due to a change in accountfng standards, offset
by a current year gain of $4.2 million.
The Village implemented GASB Statement 75—Accountfng and Financial Reportfng or Postemployment Benefits Other
Than Pensions during fiscal year 2018. This statement requires the total Other Postemployment Benefits (OPEB)
liability to be recorded on the Village’s financial statements. As a result, a restatement was made to reduce the
beginning net assets by $4.4 million in Governmental Actfvitfes and $0.3 million in Business-Type Actfvitfes.
The largest portfon of the Village’s net positfon, $95.2 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 additfonal portfon of the net positfon,
approximately $15.3 million, is subject to external restrictfons on how it may be used.
The unrestricted portfon of net positfon represents a $25.0 million deficit. The deficit balance is primarily due to the
unfunded pension liabilitfes related to the IMRF (Illinois Municipal Retfrement Fund), Police, and Fire pension plans and
the OPEB obligatfon. The deficit unrestricted net positfon will gradually improve as the pension plans become better
funded in future years.
Explanatfon, Analysis, and Discussion of Financial Statements 4
Governmental Business-Type Total Primary
Actfvitfes Actfvitfes Government Total
2018 2017 2018 2017 2018 2017 Change
Cash and Investments $35.7 $33.2 $7.1 $6.7 $42.8 $39.9 $2.9
Current and Other Assets 8.4 7.6 2.2 1.9 10.6 9.5 1.1
Capital Assets 65.5 61.8 29.8 29.9 95.3 91.7 3.6
Total Assets $109.6 $102.6 $39.1 $38.5 $148.7 $141.1 $7.6
Deferred Outilows of Resources $7.7 $6.8 $0.2 $0.7 $7.9 $7.5 $0.4
Long-Term Liabilitfes $60.1 $51.3 $0.7 $1.7 $60.8 $53.0 $7.8
Other Liabilitfes 4.5 2.9 0.7 1.0 5.2 3.9 1.3
Total Liabilitfes $64.6 $54.2 $1.4 $2.7 $66.0 $56.9 $9.1
Deferred Inflows of Resources $4.3 $5.7 $0.8 - $5.1 $5.7 ($0.6)
Net Investment in
Capital Assets $65.4 $61.8 $29.8 $29.9 $95.2 $91.7 $3.5
Restricted 15.3 14.8 - - 15.3 14.8 0.5
Unrestricted (32.3) (27.1) 7.3 6.6 (25.0) (20.5) (4.5)
Total Net Positfon $48.4 $49.5 $37.1 $36.5 $85.5 $86.0 ($0.5)
Statement of Net Position
(In millions)
The foundatfon of the Village’s financial planning is centered on the Village’s policy of maintaining a General Fund cash
and investments reserve that meets or exceeds six months of annual operatfng 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 most of its
general revenues are collected by the State (sales and telecommunicatfons tax) having a two to three month delay.
This conservatfve policy seeks to ensure the Village will have sufficient funds on hand to operate in an emergency
situatfon as well as having sufficient tfme to address any economic downturns.
As of December 31, 2018, the Village had $42.8 million in cash and investments on hand, an increase of nearly $2.9
million from December 31, 2017. The General Corporate Fund cash and investments balance of $17.9 million is equal
to 9.5 months of 2019 budgeted operatfng expenses. Cash and investments by fund is:
Explanatfon, Analysis, and Discussion of Financial Statements 5
The Village’s overall cash and investment balance is made up of various sources. The checking and Illinois Funds
portfon are highly liquid and have immediate access. Illinois Funds balances earned interest during 2018 at a rate that
ranged from 1.25% to 2.25%. The Village’s
Corporate Bonds, Municipal Bonds, Certfficates
of Deposits, and Government & Agency
Obligatfons generally mature within five year.
The investment portiolio is managed to have
individual securitfes maturing nearly every
month. The overall investment portiolio earned
interest during 2018 at an average weighted
yield of 1.75% to 2.25%.
The Village’s cash and investments portiolio
experienced strong performance during 2018.
Total interest income across all funds totaled
$746,878 in 2018, which is $365,459 more than
what was earned in 2017.
Summary on Village Cash and Investments
Fund 2018 Balance 2017 Balance Change
General $17,932,009 $17,526,141 $405,868
Hotel Tax 4,809,830 4,145,455 664,375
Motor Fuel Tax 779,844 568,661 211,183
Foreign Fire Insurance 259,393 244,054 15,339
Infrastructure 9,278,944 8,181,503 1,097,441
Promenade TIF 257,485 276,164 (18,679)
Water 6,426,743 5,682,739 744,004
Sports Core 192,897 474,973 (282,076)
Golf Surcharge 436,292 552,499 (116,207)
Self Insurance 468,568 45,042 423,526
Garage 331,134 427,409 (96,275)
Equipment Replacement 1,622,866 1,794,180 (171,314)
Total $42,796,005 $39,918,820 $2,877,185
Explanatfon, Analysis, and Discussion of Financial Statements
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retfrement Fund (IMRF), an agent
multfple-employer public employee retfrement system; the Police Pension Plan, which is a single-employer pension
plan; and the Firefighter’s Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels,
employee contributfons, and employer contributfons for all three plans are governed by Illinois Compiled Statutes and
can only be amended by the Illinois General Assembly. For further informatfon on these pension plans, refer to the
Village’s 2018 CAFR.
Related to these pension plans, the Village reports, under long-term liabilitfes on the Statement of Net Positfon, an
unfunded pension liability of $50.7 million for governmental actfvitfes and $0.2 million for business-type actfvitfes, for a
total of $50.9 million as of December 31, 2018.
Actual cash contributfons to the pension funds for 2018 totaled $4.7 million. This consisted of: $0.6 million for the
IMRF pension plan, $2.0 million for the Police pension plan, and $2.1 million for the Fire pension plan. Current State
statutes require the Village’s contributfons must accumulate to the point where the past service cost for the Police and
Fire pension plans is 90% funded by the year 2040. The Village strives to have it’s pension funds 100% funded.
The Village’s total net pension liability at 12/31/18 is:
IMRF Police Pension Fire Pension Total
Total Pension Liability $38,176,461 $60,472,616 $51,308,132 $149,957,209
Plan Fiduciary Net Positfon 37,530,985 35,164,644 26,401,169 99,096,798
Unfunded Pension Liability $645,476 $25,307,972 $24,906,963 $50,860,411
Plan Funded Rate 98.3% 58.2% 51.5% 66.1%
Combined annual Public Safety (Police and Fire) recommended pension contributfons are expected to increase from
$4.2 million in 2019 to $6.7 million in 2040 assuming a 100% funding target. Increasing pension costs could have an
impact on future services provided by the Village. The unfunded pension liability is expected to range from $45.4
million in 2019 to $5.9 million in 2040 assuming 100% funding, with a peak of $49.7 million forecasted in 2023. Actual
contributfons and unfunded liability for these years could vary depending on key actuarial assumptfons, including salary
increases, mortality tables, investment returns, and Village funding levels.
Summary on Village Pension Plans
$3
$4
$5
$6
$7
MILLIONSProjected Public Safety Pension Contributions
6
The Statement of Activities (commonly known as the “income statement”) reports all financial actfvity for the fiscal
year ended December 31, 2018.
This statement presents high-level summary informatfon about how the Village’s net positfon changed during the fiscal
year. Overall, the Village’s total restated net positfon has increased $4.2 million, or 5.2%, during fiscal year 2018.
Governmental actfvitfes restated net positfon increased $3.3 million, or 7.3%, from 2017 and business-type actfvitfes
restated net positfon increased $0.9 million, or 2.5%, from 2017.
Total revenues increased $2.7 million, or 6.0%, compared to prior year. The Village experienced increases in nearly all
major revenue sources during 2018. Sales and local use taxes contfnue to be the Village’s largest revenue source and
reflected an increase of $0.3 million, or 1.6%, compared to the prior year.
Total expenses increased $3.3 million, or 8.2%, compared to the prior year. This was primarily due to the Village-wide
water meter replacement project, an increase in actuarially determined pension expense, increased street
improvement projects, and design fees for future capital improvement projects.
Explanatfon, Analysis, and Discussion of Financial Statements 7
Governmental Business-Type Total Primary
Actfvitfes Actfvitfes Government Total
2018 2017 2018 2017 2018 2017 Change
Revenues
Program Revenues
Charges for Services $6.0 $3.9 $13.1 $13.4 $19.1 $17.3 $1.8
Grants and Contributfons 0.2 0.2 - - 0.2 0.2 -
General Revenues
Sales and Local Use Taxes 18.6 18.3 - - 18.6 18.3 0.3
Utflity Taxes 6.1 6.0 - - 6.1 6.0 0.1
Other Taxes 3.0 3.0 - - 3.0 3.0 -
Investment Income 0.6 0.3 0.1 0.1 0.7 0.4 0.3
Miscellaneous 0.2 - - - 0.2 - 0.2
Total Revenues $34.7 $31.7 $13.2 $13.5 $47.9 $45.2 $2.7
Expenses
General Government $5.6 $5.7 $- $- $5.6 $5.7 ($0.1)
Public Safety 18.9 17.4 - - 18.9 17.4 1.5
Public Works 5.0 3.8 - - 5.0 3.8 1.2
Culture and Recreatfon 1.7 1.8 - - 1.7 1.8 (0.1)
Waterworks System - - 8.8 7.9 8.8 7.9 0.9
Sports Core - - 3.5 3.5 3.5 3.5 -
Interest and Fiscal Charges 0.2 0.3 - - 0.2 0.3 (0.1)
Total Expenses $31.4 $29.0 $12.3 $11.4 $43.7 $40.4 $3.3
Change in Net Positfon $3.3 $2.7 $0.9 $2.1 $4.2 $4.8 ($0.6)
Net Positfon, January 1 $49.5 $46.8 $36.5 $34.4 $86.0 $81.2
Restatements (4.4) - (0.3) - (4.7) -
Net Positfon, January 1 Restated $45.1 $46.8 $36.2 $34.4 $81.3 $81.2
Net Positfon, December 31 $48.4 $49.5 $37.1 $36.5 $85.5 $86.0
Statement of Actfvitfes
(In millions)
Explanatfon, Analysis, and Discussion of Financial Statements
2018 Actual 2017 Actual Change
Sales Tax $18,608,900 $18,266,814 $342,086
Sales tax covers all the various taxes imposed under the Retailers Occupatfon tax, the service
Occupatfon tax, and the Use Tax Act. The Village currently receives 1.50% of eligible sales.
Utflity/Telecom Tax 6,137,283 6,033,358 103,925
The Village taxes telecommunicatfons, natural gas, and electricity. The Village receives 5% tax
from NICOR and a 10-tfered formula based on kilowatts used from Commonwealth Edison.
Taxes are also imposed on interstate or intrastate telecommunicatfons originatfng or received in
the Village by a person at a rate of 6% of gross charges.
Hotel/Motel Tax 1,340,495 1,265,583 74,912
3% tax imposed upon the use and privilege of rentfng rooms in a hotel or motel within the Vil-
lage.
Intergovernmental 1,018,888 1,023,105 (4,217)
Amounts received from other governments for support of partfcular functfons or for general
financial support. Includes State income tax and personal property replacement tax.
Charges for Services 19,131,533 17,289,670 1,841,863
Charges imposed for providing services. Total charges for services is comprised of: Water
$9,818,258, Sports Core $3,192,170, Golf Surcharge $105,771, and Governmental (licenses,
permits, fees) $6,015,334.
Grants 227,588 214,977 12,611
Funds received from federal and state agencies to assist in offsetting expenditures related to
various programs.
All Other Revenue Sources 1,405,846 1,081,863 323,983
Consists of property tax, other tax, gain on disposal of capital assets, investment income, and
other revenue.
$47,870,533 $45,175,370 $2,695,163
Revenue Overview
$-
$10
$20
$30
$40
$50
2014 2015 2016 2017 2018MILLIONS 8
See page 10 for explanatfons on the major changes from 2017.
Explanatfon, Analysis, and Discussion of Financial Statements
2018 Actual 2017 Actual Change
General Government $5,562,375 $5,813,299 ($250,924)
Includes various administratfve services of the Village (Legislatfve and General Management,
Human Resources, Finance, Informatfon Systems, and Community Development).
Public Safety 18,936,493 17,435,012 1,501,481
Includes expenses associated with providing police and fire protectfon services to the
Village.
Public Works 5,025,121 3,751,818 1,273,303
Includes Public Works administratfon, buildings and grounds, forestry, snow removal, and
streets services.
Culture and Recreatfon 1,690,190 1,659,568 30,622
Includes Library services and Hotel/Motel expenses to increase overnight stays in hotels with-
in the Village.
Waterworks System 8,819,043 7,897,092 921,951
Includes the costs associated with providing water services to the Village.
Sports Core 3,536,941 3,527,990 8,951
Includes all Sports Core operatfons (Bath & Tennis Club, Polo, Taste of Oak Brook, Golf Club).
Interest 255,253 280,458 (25,205)
Includes interest costs on all Village debt.
$43,825,416 $40,365,237 $3,460,179
Note - The increase in total expenses in 2015 relates to the recording of $10.4 million in pension expense related to the
implementatfon of GASB Statements No. 68 and 71. Fiscal year 2015 was the first year the expense was recorded on the Village ’s
financial statements.
See page 10 for explanatfons on the major changes from 2017.
Expense Overview
$-
$10
$20
$30
$40
$50
$60
2014 2015 2016 2017 2018MILLIONS 9
Key financial highlights of fiscal year 2018 include:
Charges for services revenue increased $1.8 million, or 10.4%, from 2017 due increases in building permit
fees from large economic development permits issued and a 7% water rate increase.
Sales and use tax revenue increased $0.3 million, or 1.6%, from 2017 due to improvements in the
economy, businesses reopening, and a reductfon of the State’s 2% administratfon fee on collectfng
revenues to 1.5%.
Investment income increased $0.3 million, or 75.0%, from 2017 due to rising interest rates and more
available cash on hand to invest. The weighted average yield of the Village’s long-term investment
portiolio increased from 1.70% in 2017 to 2.27% in 2018.
Miscellaneous revenue increased $0.2 million from 2017 due to various one-tfme receipts. The Village
received funds from the sale of property and the Library’s switch from the MAGIC to SWAN system.
General government expenses decreased $0.1 million, or 1.8%, from 2017. This is primarily due to a
reductfon in liability insurance premiums.
Public Safety expenses increased $1.5 million, or 8.6%, from 2017. The increase is due to increases in
salary and benefits costs and annual pension contributfons. Public safety expense also saw an increase in
the annual recognitfon of actuarially determined pension expense due to unfavorable investment market
conditfons in 2018.
Public works expenses increased $1.2 million, or 31.6%, from 2017. The increase is due to street
resurfacing projects and planning and design work for future projects.
Culture and recreatfon expenses decreased $0.1 million, or 5.6%, from 2017. The decrease is due to the
completfon of a median beatfficatfon project in 2017. There were no major projects during 2018. This was
offset by normal salary and benefits increases and an increase in hotel advertfsing in 2018.
Waterworks System expenses increased $0.9 million, or 11.4%, from 2017. The increase is due to increases
in water purchase rates and the Village-wide water meter replacement project that kicked off in early
2018.
Explanatfon, Analysis, and Discussion of Financial Statements
Overview of Financial Positfon and Results of Actfvitfes
10
Explanatfon, Analysis, and Discussion of Financial Statements 11
General Fund
The General Fund accounts for the Village’s primary operatfng actfvitfes. Services funded by the General Fund include
police, fire, library, public works, economic development, and general administratfon. The General Fund accounts for
all financial resources except those accounted for in another fund.
Total revenues increased $1.8 million, or 7.5%, from 2017. Revenue levels across all major sources were stronger in
2018 than antfcipated, coming in at $2.5 million over budget. Intergovernmental revenue (which includes sales tax,
income tax, use tax, and more) bounced back some in 2018 and came in $0.3 million higher than last year and over
budget. Utflity Taxes (electric, gas, and cable) were strong in 2018 accountfng for an increase of $0.1 million over 2017
and $0.3 million over budget. Licenses & Permits revenue was $1.0 million higher than 2017 and $1.4 million over
budget. This was due to the issuance of a few large redevelopment building permits during 2018.
Total expenditures increased $2.1 million, or 9.0%, from 2017. Total expenditures were $0.8 million under budget
despite the increase from 2017. The increase in expenditures is due to normal personnel cost increases, the Police
Department expansion and renovatfon capital project, and an increase in actuarially recommended contributfons made
to the Village’s public safety pension plans.
Fund balance increased $0.7 million in 2018 to a total of $21.8 million. Of this amount, nearly all ($21.7 million) is
unassigned and can be used for any purpose. The General Fund has seen significant increases in fund balances over
the past few years, increasing from $16.1 million in 2014 to $21.7 million in 2018.
Original Final Variance with 2017
Budget Budget Actual Final Budget Actual
Revenues
Intergovernmental $13,610,200 $13,610,200 $13,900,471 $290,271 $13,640,557
Utflity Taxes 5,792,250 5,792,250 6,137,283 345,033 6,033,358
Licenses & Permits 1,784,070 1,784,070 3,185,402 1,401,332 2,205,571
Charges for Services 1,052,100 1,052,100 1,155,142 103,042 1,106,204
Other 728,750 728,750 1,119,962 391,212 741,020
Total Revenues $22,967,370 $22,967,370 $25,498,260 $2,530,890 $23,726,710
Expenditures
General Government $6,542,560 $6,650,878 $6,548,865 102,013 $4,757,533
Public Safety 16,748,565 16,804,715 16,610,925 193,790 16,113,415
Public Works 993,820 993,820 761,682 232,138 708,940
Culture and Recreatfon 889,845 893,875 878,135 15,740 874,892
Debt Service 263,350 263,350 - 263,350 289,800
Total Expenditures $25,438,140 $25,606,638 $24,799,607 $807,031 $22,744,580
Other Financing Sources (Uses)
Installment Note Proceeds $2,475,165 $2,475,165 $- ($2,475,165) $-
Total Other Financing Sources (Uses) $2,475,165 $2,475,165 $- ($2,475,165) $-
Change in Fund Balance $4,395 ($164,103) $698,653 $982,130
Fund Balance, January 1 $21,054,674 $20,072,544
Fund Balance, December 31 $21,753,327 $21,054,674
Village Sales Tax 12
Sales Tax revenue is largest revenue source in the Village’s General Fund and Infrastructure Fund. The amount of sales
tax generated by Village businesses allows the Village to operate without a real estate tax levy. The Village does
receive a small amount of real estate tax revenue for the Promenade TIF district, but this money is used exclusively to
repay TIF bondholders.
The sales tax rate charged within the Village is 7.50%. Of
this rate, the Village directly receives 1.50%. The 1.50% is
further broken down into two portfons: 1.00% is the local
portfon that goes into the General Fund to fund general
operatfons (public safety, public works, library,
development services, and administratfon) and 0.50% is the
non-home rule portfon that goes into the Infrastructure
Fund to fund roadway improvements.
Also, the Promenade TIF Fund receives a portfon of sales
tax revenue to be used to repay bondholders in
accordance with the redevelopment agreement. Of all the
sales tax and non-home rule sales tax collected from stores
within the Promenade shopping center, 20% of this amount
is recorded in the Promenade TIF Fund.
The General Fund’s portfon of sales tax revenue in fiscal year 2018 was $12,586,320, which is an increase of $204,391,
or 1.7%, over 2017. The Infrastructure Fund’s portfon of non-home rule sales tax in fiscal year 2018 was $5,691,536,
which is an increase of $109,612, or 2.0%, over 2017.
Of the Village’s total sales tax revenue, nearly 50% comes from businesses located within Oakbrook Center mall.
Oakbrook Center contfnues to be one of the areas most popular malls and offers numerous retail, dining, and
entertainment optfons. A few of the Village’s top sales tax generators in 2018 were:
Apple Computers, Inc.
Costco
Louis Vuitton
Macy’s
Neiman Marcus
Nordstrom
Nordstrom Rack
Peloton Interactfve Inc.
Room & Board
Tiffany & Co.
These taxpayers accounted for nearly 45%
of the Village’s total sales tax revenue in
2018. The Village contfnues to work on
attractfng new businesses to strengthen its
sales tax base and contfnue operatfons without a real estate tax levy. Sales tax and Non-Home Rule sales tax revenue
has remained fairly consistent over the past few years despite a growing shift from brick and mortar stores to online
sales. The Village received a few large, non-routfne payments in 2016 causing that year to appear as an outlier.
Key Statfstfcs 13
*Individual property tax rates may vary depending on school district boundaries.
2014 2015 2016 2017 2018
General
Debt per capita $583 $534 $480 $422 $401
DuPage County unemployment rate 4.6% 4.6% 4.4% 3.9% 2.9%
Property tax rate* 3.8389 3.9263 3.7945 3.5786 3.4555
Estfmated retail sales $1,209,120,800 $1,235,726,800 $1,310,311,500 $1,240,438,500 $1,258,799,200
Total sales tax receipts—cash basis $17,341,263 $18,043,872 $19,019,578 $18,253,755 $17,946,614
Police
Physical arrests 196 208 191 212 181
Parking violatfons 306 299 901 443 404
Traffic violatfons 2,986 2,082 1,465 1,495 1,398
Fire
EMS incidents 1,321 1,329 1,432 1,380 1,408
Fire incidents 742 600 630 672 722
Communicatfons Center (DUCOMM)
Police calls dispatched 19,853 19,442 23,924 21,656 23,716
Fire/EMS calls dispatched 2,448 2,246 2,407 2,493 2,616
Library
Total circulatfon 90,485 91,205 112,423 105,129 114,014
Total holdings 131,973 102,441 97,201 94,353 91,789
Community Development
Building permits issued 837 850 841 943 908
Estfmated constructfon value $110,922,495 $174,948,935 $99,520,330 $176,470,285 $135,704,908
Inspectfons 2,648 2,790 2,999 2,963 2,607
Sports Core
B&T recreatfon memberships 338 307 317 294 307
Social memberships 82 81 77 - -
Total events 72 71 75 65 74
Golf memberships 143 142 145 151 158
Total golf rounds 33,861 34,019 39,324 39,863 35,256