Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
CAFR (Year Ended December 31, 2019)
VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE VILLAGE OF OAK BROOK, ILLINOIS As of and for the Year Ended December 31, 2019 Prepared by the Finance Department Jason Paprocki Finance Director VILLAGE OF OAK BROOK TABLE OF CONTENTS As of and for the Year Ended December 31, 2019 Page(s) INTRODUCTORY SECTION Letter of Transmittal i - vi Certificate of Achievement for Excellence in Financial Reporting vii Organization Chart viii Principal Officials ix FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 - 3 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis 4 - 16 BASIC FINANCIAL STATEMENTS Government-W ide Financial Statements Statement of Net Position 17 Statement of Activities 18 - 19 Fund Financial Statements Balance Sheet - Governmental Funds 20 - 21 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23 - 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Net Position - Proprietary Funds 26 - 29 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 30 - 31 Statement of Cash Flows - Proprietary Funds 32 - 35 Statement of Fiduciary Net Position - Fiduciary Funds 36 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 37 Index to Notes to Financial Statements 38 Notes to Financial Statements 39 - 84 REQUIRED SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 85 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2019 Page(s) REQUIRED SUPPLEMENTARY INFORMATION (cont.) Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Hotel/Motel Tax Fund 86 Historical Pension and Other Postemployment Benefit Plan Information Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 87 Illinois Municipal Retirement Fund - Schedule of Employer Contributions 88 Police Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 89 Police Pension Fund - Schedule of Employer Contributions 90 - 91 Police Pension Fund - Schedule of Investment Returns 92 Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 93 Firefighters' Pension Fund - Schedule of Employer Contributions 94 - 95 Firefighters' Pension Fund - Schedule of Investment Returns 96 Other Postemployment Benefit Plan - Schedule of Changes in the Total OPEB Liability and Related Ratios 97 Notes to Required Supplementary Information 98 SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues - Budget and Actual - General Fund 99 Schedule of Expenditures and Other Financing Uses - Budget and Actual - General Fund 100 - 104 Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds 105 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 106 Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 107 Infrastructure Fund - Major Capital Projects Fund 108 - 110 Promenade TIF Fund - Major Capital Projects Fund 111 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2019 Page(s) SUPPLEMENTARY INFORMATION (cont.) Proprietary Funds Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 112 - 113 Schedule of Operating Expenses - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 114 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Sports Core Fund - Major Enterprise Fund 115 Schedule of Operating Revenues - Budget and Actual - Sports Core Fund - Major Enterprise Fund 116 Schedule of Operating Expenses - Budget and Actual - Sports Core Fund - Major Enterprise Fund 117 - 119 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Golf Surcharge Fund - Nonmajor Enterprise Fund 120 Internal Service Funds Combining Statement of Net Position - Internal Services Funds 121 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 122 Combining Statement of Cash Flows - Internal Service Funds 123 - 124 Statement of Revenues, Expenses and Changes in Net Position - Budget and Actual Self-Insurance Fund - Internal Service Fund 125 Garage Fund - Internal Service Fund 126 Capital Replacement Fund - Internal Service Fund 127 Fiduciary Funds Combining Statement of Fiduciary Net Position - Pension Trust Funds 128 Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 129 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 130 - 131 Changes in Net Position - Last Ten Fiscal Years 132 - 135 Fund Balances of Governmental Funds - Last Ten Fiscal Years 136 - 137 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 138 - 139 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 140 - 141 Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 142 - 143 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2019 Page(s) STATISTICAL SECTION (cont.) Principal Revenue Taxpayers - Current and Nine Years Ago 144 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 145 - 146 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 147 - 148 Schedule of Direct and Overlapping Bonded Debt 149 Legal Debt Margin Information - Last Ten Fiscal Years 150 - 151 Demographic and Economic Information - Last Ten Fiscal Years 152 Principal Employers - Current and Eight Years Ago 153 Retail Sales Volume - Top 25 Illinois Communities 154 Sales Tax Receipts - Cash Basis - Last Ten Fiscal Years 155 State Sales Tax Receipts by Month - Cash Basis - Last Five Fiscal Years 156 - 157 Non-Home Rule Sales Tax Receipts by Month - Cash Basis - Last Five Fiscal Years 158 - 159 Sales Tax by Category - Last Ten Fiscal Years 160 - 161 Non-Home Rule Sales Tax by Category - Last Ten Fiscal Years 162 - 163 Budgeted Full-Time Equivalent Employees - Last Ten Fiscal Years 164 - 165 Operating Indicators - Last Ten Fiscal Years 166 - 167 Capital Assets Statistics - Last Ten Fiscal Years 168 - 169 i 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 Development Services 630.368.5101 FAX 630.368.5128 Engineering Department 630.990.3010 FAX 630.990.3985 Fire Department 630.368.5130 FAX 630.368.5128 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 630.368.7700 FAX 630.368.7704 Oak Brook Sports Core Bath & Tennis Club 700 Oak Brook Road Oak Brook, IL 60523 630.368.6420 FAX 630.368.6439 Golf Club 2606 York Road Oak Brook, IL 60523 630.368.6400 FAX 630.368.6419 May 22, 2020 Honorable Gopal Lalmalani, Village President Board of Trustees Citizens of the Village of Oak Brook, Illinois: Illinois state statute requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with United States Generally Accepted Accounting Principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of independent licensed certified public accountants. This report is published to fulfill that requirement for the year ended December 31, 2019. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rest with the management of the Village. We believe to the best of our knowledge, as presented, the data is accurate in all material respects and presented in a manner designed to fairly set forth the financial position and results of the operations. Management of the Village is responsible for establishing and maintaining internal controls designed to ensure that the assets of the Village are protected from loss, theft or misuse and to ensure that sufficient, reliable, adequate accounting data is compiled for the preparation of financial statements in conformity with GAAP. Internal accounting controls have been designed to provide reasonable rather than absolute assurance that the financials statements will be free from material misstatement. We believe that the Village’s internal controls adequately safeguard assets and provide reasonable assurance of properly recorded financial transactions. In addition, the Village maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual budget approved by the Village Board. All disbursements receive approval from the Board of Trustees. The Village also maintains an encumbrance system that is used as an extension of formal budgetary integration. The Village’s financial statements have been audited by Baker Tilly Virchow Krause LLP, a firm of licensed certified public accountants. The independent audit is to provide reasonable assurance that the financial statements of the Village of Oak Brook are free of material misstatements. ii The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing accounting principles used and significant estimates made by management;and the evaluation of the overall financial statement presentation. Based upon the audit for the year ending December 31, 2019, the independent auditors concluded, that there was a reasonable basis for rendering an unmodified opinion on the Village’s financial statements. The independent auditors’ report is presented as the first component of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Village of Oak Brook The Village of Oak Brook is located approximately 15 miles west of the Chicago Loop, near the geographic center of the seven-county Chicago metropolitan area. Excellent transportation 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 Tri-State Tollway (I-294), running along the Village’s eastern boundary, provides rapid access to the northern and southern suburbs, and into Wisconsin and Indiana. The East- West Tollway (I-88), passing through the Village’s northern sector, joins the Eisenhower Expressway to the northeast, providing direct access to Chicago’s Loop. Additional links include east-west arteries Illinois Route 38 and U.S. Route 34, which pass, respectively, to the north and south of the Village, and Illinois Route 83, which bisects the community in a north-south direction. The Oak Brook area is bounded on the north by the communities of Lombard, Villa Park, Elmhurst and Oak Brook Terrace and on the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale. 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. The Village provides a wide range of municipal services including general government, public safety (police and fire), public works, road maintenance, community development and recreation facilities and a free public library. For additional information concerning the Village, please visit our website at www.oak- brook.org. Local Economy and Finances The Village of Oak Brook has been and continues to be one of the preeminent business centers in the Chicago metropolitan area. Several large corporations have facilities in the Village, including the corporate headquarters of TreeHouse Foods, Hub Group,and Ace Hardware. As a retail center, Oak Brook offers upscale shopping, fine restaurants, and Oakbrook Center, one of the leading outdoor shopping centers in the United States. Oak iii Brook is comprised of 38,708 private sector jobs (2018, IDES, Where Workers Work); of them,16.8% are in the Management of Companies and Enterprises field,13.6% are in the Administrative and Support field, Waste Management, and Remedial services, and 12.8% are in the health care and social assistance field. These factors, as well as the performance of the Illinois economy over time, have enabled the Village to operate without a real estate tax since inception due to the sales taxes generated from retail business activities. Overall, the Village has seen many revenue sources show signs of improvement compared to levels seen during the economic crisis in 2009. With sales taxes being the largest source of General Fund revenue, the local and national economy has a significant effect on the amount of revenue the Village receives. Sales tax revenue decreased $69,704, or 0.6%,compared to last year’s revenue. The decrease was primarily due to the redevelopment of certain areas within Oakbrook Center. Overall, sales tax revenue has increased nearly $1.5 million since 2010. Looking forward to 2020 and beyond, sales tax revenue is expected to be negatively impacted by the COVID-19 pandemic. We will continue to monitor the impact of lost revenue and budget expenditures accordingly. Oak Brook’s estimated construction value indicates a positive trend between the years of 2013 through 2019, with the high coming in 2017 at $176.5 million. Total construction value in 2019 was valued at $167.4 million, an increase of $31.7 million compared to 2018. The increase is due to many large projects such as the Senior Lifestyle and Hub Group permits issued during 2019. Total building permits issued during 2019 came in at 920, which is an increase of 12 compared to 2018 permits. Overall, development has been strong over the past five years and is expected to remain strong through 2020 and beyond. The Village anticipates a number of large development projects in the near future, such as the Oak Brook Commons project. New Commercial Development There have been many changes and improvements in Oakbrook Center. The former Sears building continues to be under redevelopment with new businesses. Ballard Designs and LL Bean have opened in the former Sears space. There are still plans for Kidzania to occupy the remaining former Sears space during early 2021. The Former Lord & Taylor space is also being redeveloped into numerous spaces, including Puttshack and Abercrombie and Fitch. A new Lifetime Fitness building is currently under construction and plans to open in late 2020. The new Carvana building finished construction and officially began operations during 2019. Rush University Medical Center and Midwest Orthopedics broke ground in early 2017 on a 100,000 square-foot, $65 million professional building. This facility officially opened in early 2019. In addition, Hub Group kicked off its corporate headquarters expansion during 2019. Senior Lifestyle has broken ground on a $79 million 200-unit luxury apartment complex for senior citizens. Completion on this facility is expected in late 2020 or early 2021. iv The Former McDonald’s properties have been purchased and plans are underway to redevelop these areas. The former headquarters was demolished and will make way for the Oak Brook Commons project, which includes retail, restaurants, office space, and apartments. Planning for the McDonald’s campus is currently underway and will likely include a mix of office, retail, open space, and housing. Long-term Financial Planning The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Objectives –this is an annual process in which the Village Board and staff express specific objectives to be accomplished. Typically, objectives relate to a specific task or project or to a change in methods or operations designed to achieve the stated objective. Roadway Maintenance Plan –this plan is based on the Village’s pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated annually, includes a long-range schedule of roadway maintenance activities as well as cost projections over the next ten-year period in order to plan for the orderly maintenance of the Village’s roadway system. Five-Year Financial Plan –this document is prepared annually in order to provide the Village Board and the community with a five-year projection of the financial condition of each of the twelve funds that comprise the Village’s financial structure. This document is not as precise as the annual budget but it does project both revenues and expenditures for each of the next five years that can assist in identifying positive and negative trends. Annual Budget –using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers (called “programs”) and sets the spending plan for the coming year. The foundation of all of the Village’s financial planning is centered on the Village Board’s well-publicized policy of maintaining a cash and investment reserve in the General Fund that meets or exceeds six months of annual operating expenses. The six- month policy level, which is higher than many other municipalities, was established due to the Village not having the predictability of real estate tax revenue and the fact that most of its general revenues that are collected by the State (sales and telecommunications taxes) have a three month delay. This conservative policy ensures that 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. The soundness of this financial policy has proven itself as the Village has been able to maintain adequate cash reserves in this recessionary environment. v Major Initiatives Providing safe, efficient, and well maintained infrastructure continues to be a major goal for the Village. The Village has accomplished many things during the year to help realize this goal. During 2019, the Village completed numerous water main replacement projects, including the Brook Forest subdivision phase 1, Windsor Drive, Enterprise Drive, and Luthin Road. The Village also made improvements to its water SCADA system. Various streets were resurfaced as part of the annual street improvements plan. Bath & Tennis Circle was reconstructed to improve storm water drainage. The Village also continued engineering and design for numerous future projects, including Windsor Drive widening, the York and Harger intersection reconfiguration,the Harger Road bike path project. Site work for the new Salt Storage facility kicked off during 2019. Construction on this facility is expected to be complete by mid-2020. This facility will allow the Village to purchase and store larger quantities of salt and store equipment. There were also many improvements made at the Sports Core this year.The installation of a new emergency generator at the Bath and Tennis Club was completed,the swimming pools and gutter systems were completely renovated, the Golf Club patio renovation was finished, and the Golf pro shop was upgraded. The 2020 Budget includes a number of capital projects, including: the finishing the construction of the Salt Storage facility, the Windsor Drive utility relocation and widening project, the York Road/Harger Road intersection reconstruction,the Harger Road bike path construction,the start of the Sports Core OSLAD grant open space improvements project,finishing the Bath and Tennis Club pool upgrades, Golf Club lounge and bar upgrades, and various water main replacements. For a full listing of planned capital improvements, you can review the 2020-2024 Five-Year Plan at: http://www.oak-brook.org/304/Financial-Documents. Currently, there is some uncertainty on the planned 2020 capital improvements. As the Village assesses the impact of the COVID-19 pandemic on revenue loss, a number of these projects have been put on hold. These projects may be rescheduled to a future fiscal year, or cancelled all together. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Oak Brook for its Comprehensive Annual Financial Report for the year ended December, 31, 2018. vi In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village has successfully obtained the Certificate of Achievement for 41 consecutive years. We believe that our current Report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. In addition, the Village of Oak Brook received the GFOA’s Distinguished Budget Presentation Award for its annual budget for the 2019 fiscal year. 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 is the seventh consecutive year the Village has received this award. The preparation of this report could not be possible without the efficient and dedicated services of the entire Finance Department of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Jason Paprocki Finance Director ResidentsofOak BrookVillage Presidentand Board of TrusteesVillage Clerk Village ManagerVillage Attorney (General)Finance DirectorChief of PoliceFire ChiefPublic Works DirectorDevelopment ServicesDirectorHead Librarian Golf Course Grounds Superintendent Boards andCommissionsVillage of Oak BrookOrganization Chart Fiscal Year 2019Village Attorney(Labor) Information Technology Services Director Human Resources Director/Deputy Village Clerk ix VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2019 Gopal Lalmalani, Village President Charlotte K. Pruss, Village Clerk BOARD OF TRUSTEES John Baar Philip Cuevas Michael Manzo Moin Saiyed Edward Tiesenga Asif Yusuf MANAGEMENT TEAM Riccardo Ginex Village Manager Jason Paprocki Finance Director Doug Patchin Public Works Director Tony Budzikowski Development Services Director James Fox Information Technology Director Barry Liss Fire Chief Jacob Post Head Librarian James Kruger Police Chief Sean Creed Golf Course Superintendent Kathryn Vonachen Human Resources Director/ Deputy Village Clerk Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP INDEPENDENT AUDITORS' REPORT To the Honorable President and Board of Trustees Village of Oak Brook Oak Brook, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Oak Brook, Illinois, as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the Village of Oak Brook's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village of Oak Brook's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of Oak Brook's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Page 1 To the Honorable President and Board of Trustees Village of Oak Brook Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Oak Brook, Illinois, as of December 31, 2019 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. W e have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook's basic financial statements. The supplementary informationas listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole for the year ended. We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the Village of Oak Brook as of and for the year ended December 31, 2018 (not presented herein), and have issued our report thereon dated May 21, 2019, which contained unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information. The supplementary information for the year ended December 31, 2018 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2018 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2018 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended December 31, 2018. Page 2 To the Honorable President and Board of Trustees Village of Oak Brook Page 3 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook's basic financial statements. The introductory and statisical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Oak Brook, Illinois May 22, 2020 (See independent auditors’ report) 4 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2019 As the management of the Village of Oak Brook (the “Village”), we offer readers of the Village’s financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended December 31, 2019. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Transmittal Letter (beginning on page i) and the Village’s Financial Statements (beginning on page 17). This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. HIGHLIGHTS Financial Highlights For the year ending December 31, 2019, the Village’s total (combined governmental and business-type) assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $92.6 million (referred to as net position). The Village’s total net position increased by $7.1 million, or 8.3%, compared to the prior year. The governmental activities reported total net position of $51.8 million, which is an increase of $3.4 million, or 7.0%, in comparison to the prior year balance. The unrestricted portion of the net position is a $30.8 million deficit, which is attributed to the Village’s unfunded pension and OPEB liabilities. The business-type activities reported total net position of $40.8 million, which is an increase of $3.7 million, or 10.0%, in comparison to the prior year balance. The unrestricted portion of the net position is $6.8 million. The Village had a total (governmental and business-type activities combined) unrestricted net position deficit of $24.0 million at December 31, 2019. Total revenues increased $2.3 million, or 4.8%, in comparison to the prior year. Of the total increase, governmental activities revenues increased $1.0 million and business-type activities revenues increased $1.3 million. Total expenses decreased $0.6 million, or 1.4%, in comparison to the prior year. Of the total decrease, governmental activities expenses increased $0.9 million and business-type activities expenses decreased $1.5 million. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 5 Government - Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village’s finances, in a manner similar to a private-sector business. The focus of the Statement of Net Position presents information on all of the Village’s assets/deferred outflows of resources and liabilities/deferred inflows of resources, with the difference between the two reported as net position. This statement combines and consolidates governmental fund’s current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. 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 Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements (see pages 17-19) distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village reflect the Village’s basic services, including administration, police, fire and emergency medical services, engineering, public works, library, and community development. The business- type activities of the Village, which are based on a fee for service designed to cover all or most of the cost of operation, include the waterworks system, operations of the Oak Brook Sports Core, and the collection of golf surcharge fees. Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements to be more familiar. The focus of the presentation is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 6 By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village maintains six individual governmental funds. Information is presented separately in the governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balances for the General Fund, Hotel/Motel Tax Fund, Infrastructure Fund, and Promenade TIF Fund, all of which are considered to be “major” funds. Data from the other two governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The Village adopts an annual budget for each of its governmental funds, except for the Foreign Fire Insurance fund. A budgetary comparison statement has been provided elsewhere in this report to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 20 through 25 of this report. Proprietary Funds. The Village maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village uses enterprise funds to account for its waterworks system, the operations of the Oak Brook Sports Core, and the collection of the golf surcharge fees. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village’s various functions. The Village uses internal service funds to account for the costs of health and dental insurance, garage operations, and the advance funding of equipment replacement. Because the Village’s costs for these items relate to both governmental and business-type functions, the costs have been allocated to each type of activity where appropriate. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Waterworks System and the Oak Brook Sports Core, both of which are considered to be major funds of the Village. The Golf Surcharge fund is considered to be a non- major enterprise fund. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 26 through 35 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters’ Pension Fund. The Village does not adopt an annual budget for either of these funds. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 7 The basic fiduciary fund financial statements can be found on pages 36 and 37 of this report. Infrastructure Assets Prior to 2003, the Village’s largest group of assets (infrastructure assets- roads, bridges, storm sewers, etc.) were not reported nor depreciated in governmental financial statements. GASB Statement No. 34, which was implemented in 2003, requires that these assets be valued and reported within the Governmental Activities column of the Government-wide Statements. Additionally, the Village must elect to (1) depreciate the assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity (modified approach). The Village has chosen to depreciate assets over their useful life. If a road project is considered maintenance-a recurring cost that does not extend the original useful life or expand its capacity-the cost of the project will be expensed. An “overlay” of a road will be considered maintenance whereas a “rebuild” of a road will be capitalized. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39 through 84 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s progress in funding its pension obligations to provide benefits to its employees. Required supplementary information can be found on pages 85 through 98 of this report. The combining statements referred to earlier in connection with non-major governmental funds, non-major enterprise funds, and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 105 through 127 of this report. Financial Analysis of the Village as a Whole Beyond presenting current year financial information in the government-wide and major individual fund formats, the Village also presents comparative information from the prior year in the Management’s Discussion and Analysis. By doing so, the Village is providing an additional means of analyzing its financial condition and financial position as of December 31, 2018. GOVERNMENT-WIDE STATEMENTS The Government-wide Financial Statements were designed so that the user can determine if the Village’s financial position has improved or deteriorated from the prior year. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 8 Statement of Net Position The following table reflects a Summary of Net Position for fiscal years 2019 and 2018. 2019 2018 2019 2018 2019 2018 Assets Current and Other Assets 46.7$ 44.1$ 9.2$ 9.3$ 55.9$ 53.4$ Capital Assets 68.0 65.5 34.0 29.8 102.0 95.3 Total Assets 114.7$ 109.6$ 43.2$ 39.1$ 157.9$ 148.7$ Deferred Outflows of Resources 5.4$ 7.7$ 1.2$ 0.2$ 6.6$ 7.9$ Liabilities Long-Term Liabilities 57.6$ 60.1$ 2.2$ 0.7$ 59.8$ 60.8$ Other Liabilities 5.2 4.5 1.2 0.7 6.4 5.2 Total Liabilities 62.8$ 64.6$ 3.4$ 1.4$ 66.2$ 66.0$ Deferred Inflows of Resources 5.5$ 4.3$ 0.2$ 0.8$ 5.7$ 5.1$ NET POSITION Net Investment in Capital Assets 67.6$ 65.4$ 34.0$ 29.8$ 101.6$ 95.2$ Restricted 15.0 15.3 - - 15.0 15.3 Unrestricted (30.8) (32.3) 6.8 7.3 (24.0) (25.0) Total Net Position 51.8$ 48.4$ 40.8$ 37.1$ 92.6$ 85.5$ Activities Business-Type Activities Total Primary Government Table 1 Statement of Net Position Summary As of December 31, 2019 and 2018 (in millions) Governmental Cash and investments, which is included in current and other assets, increased $2.7 million, or 6.3% compared to the prior year. Total governmental and business-type cash was $45.5 million at December 31, 2019. The Village’s combined net position increased from $85.5 million to $92.6 million, or $7.1 million, during 2019. The Village’s combined unrestricted net position increased $1.0 million during 2019. The unrestricted portion of net position remains a deficit balance due to the unfunded pension and OPEB liabilities, but saw slight improvements during 2019. The net investment in capital assets is the largest portion of net position. This represents capital assets (land, buildings, improvements, equipment, infrastructure and construction in progress), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The Village uses these capital assets to provide services to its citizens and these assets are not available for future spending. For more detailed information, see the Statement of Net Position on page 17. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 9 Summary of Changes in Net Position The following table summarizes the revenues and expenses found on the Statement of Activities for 2019 and 2018: 2019 2018 2019 2018 2019 2018 Revenues Program Revenues Charges for Services 7.0$ 6.0$ 13.5$ 13.1$ 20.5$ 19.1$ Grants and Contributions 0.3 0.2 - - 0.3 0.2 General Revenues Sales and Local Use Taxes 18.5 18.6 - - 18.5 18.6 Utility Taxes 6.3 6.1 - - 6.3 6.1 Other Taxes 3.1 3.0 - - 3.1 3.0 Investment Income 1.1 0.6 0.2 0.1 1.3 0.7 Miscellaneous 0.1 0.2 0.1 - 0.2 0.2 Transfers (0.7) - 0.7 - - - Total Revenues 35.7$ 34.7$ 14.5$ 13.2$ 50.2$ 47.9$ Expenses General Government 5.8$ 5.6$ -$ -$ 5.8$ 5.6$ Public Safety 18.9 18.9 - - 18.9 18.9 Public Works 5.6 5.0 - - 5.6 5.0 Culture and Recreation 1.8 1.7 - - 1.8 1.7 Waterworks System - - 7.1 8.8 7.1 8.8 Sports Core - - 3.7 3.5 3.7 3.5 Interest and Fiscal Charges 0.2 0.2 - - 0.2 0.2 Total Expenses 32.3$ 31.4$ 10.8$ 12.3$ 43.1$ 43.7$ Change in Net Position 3.4$ 3.3$ 3.7$ 0.9$ 7.1$ 4.2$ Net Position - Beginning of Year 48.4$ 49.5$ 37.1$ 36.5$ 85.5$ 86.0$ Restatements - (4.4) - (0.3) - (4.7) Net Position - Beginning of Year (Restated) 48.4$ 45.1$ 37.1$ 36.2$ 85.5$ 81.3$ Net Position - End of Year 51.8$ 48.4$ 40.8$ 37.1$ 92.6$ 85.5$ Activities Activities Government Table 2 Statement of Activities Summary For the Fiscal Year Ended December 31, 2019 and 2018 (in millions) Governmental Business-Type Total Primary Total revenues increased $2.3 million, or 4.8%, compared to the prior year. The increase is primarily from an increase in water sales revenue due to a rate increase, increases in building permit revenues from economic development, and an increase interest income revenue from favorable market conditions. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 10 Total expenses decreased $0.6 million, or 1.4%, compared to the prior year, which is primarily due to the Village-wide water meter replacement project that occurred in 2018 and offset by normal inflationary personnel cost increases. Governmental Activities Revenues – Governmental Activities For the fiscal year ended December 31, 2019, Governmental Activities revenues totaled $35.7 million, an increase of $1.0 million from 2018. Revenue from sales and use taxes, which continues to be the Village’s largest revenue source, amounted to $18.5 million, or 51.8% of total revenue. Sales and use tax revenue decreased $0.1 million, or 0.5%, from 2018 due to the timing of businesses closing and new businesses opening during 2019. Utility taxes, which include the taxes imposed on electric, natural gas, and telecommunications services, were $6.3 million, or 17.6% of total revenue. Utility tax revenue increased $0.2 million, or 3.3%, from 2018 due to general inflationary increases. The “other taxes” classification includes a number of different revenue sources including income taxes, personal property replacement taxes, and hotel taxes. For 2019, these revenues were $3.1 million, or 8.7% of total revenues. Other taxes increased $0.1 million, or 3.3%, from 2018 due to increases in income tax and use tax revenues. The “charges for services” classification includes number of different licenses, permits, and fees. For 2019, these revenues were $7.0 million, or 19.6% of total revenues. Charges for services increased $1.0 million, or 16.7%, from 2018 due to increases in building permit revenue from numerous redevelopment projects in the Village. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 11 Expenses by Function – Governmental Activities Expenses for the Village of Oak Brook for governmental activities totaled $32.3 million in 2019, an increase of $0.9 million, or 2.9%, from 2018. Changes by individual function include: General government expenses were $5.8 million, an increase of $0.2 million, or 3.6%, from 2018. This is primarily due to normal salary and benefits related increases. Public Safety expenses were $18.9 million, which is flat compared to 2018. Public safety saw an increase in contract ambulance services due to the addition of paramedics, an increase in pension contributions, and normal personnel related increases. This was offset by a reduction in actuarial pension expense due to favorable market conditions in 2019. Public works expenses were $5.6 million, an increase of $0.6 million, or 12.0%, from 2018. The increase is due to street resurfacing projects and planning and design work for future projects. Culture and recreation expenses were $1.8 million, an increase of $0.1 million, or 5.9%, from 2018. This is primarily due to normal personnel related increases and increases in supplies and advertising. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 12 Business-type Activities The business-type activities net position increased $3.7 million, or 10.0%, compared to the prior year. For business-type activities, revenues for the waterworks system were $10.0 million, which increased by $0.2 million, or 2.0%, compared to the prior year, due to an increase in water rates and water connection fees. Program revenues for Sports Core were $3.3 million, which was flat compared to the prior year. Golf surcharge revenues were even with 2018 totals. For business-type activities, expenses for the waterworks system were $7.1 million, or 65.9% of total business-type expenses, which is a decrease of $1.7, or 19.3%, million from 2018. The decrease is due to the Village-wide water meter replacement project in 2018. Sports Core expenses were $3.7 million, or 34.1%, of total business-type expenses, which is an increase of $0.2 million, or 5.7%, from 2018. The increase is due to normal increases in personnel related costs and supplies. Program Program Revenues Expenses Waterworks Sytem 10,036,858$ 7,145,987$ Sports Core 3,328,488 3,704,979 Golf Surcharge 111,082 - Total 13,476,428$ 10,850,966$ Revenues and Expenses - Business-Type Activites For the Fiscal Year Ended December 31, 2019 FINANCIAL ANALYSIS OF THE VILLAGES FUNDS Governmental Funds As noted earlier, the Village of Oak Brook uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of December 31, 2019, the governmental funds (as presented on the balance sheet on pages 20 through 21) had a combined fund balance of $40.1 million, which is an increase of $3.0 million over the prior year. Below is a brief summary on major changes in the Village’s major governmental funds. The fund balance in the General Fund increased $3.3 million from 2018 to 2019, to a total of $25.1 million. General Fund revenues came in $2.5 million over budget in 2019, while expenditures were $0.3 million under the final amended budget. Table 3 below details the General Fund major revenue and expenditure line items compared to original and amended budget. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 13 Original Amended Budget Budget Actual Revenues Intergovernmental 13,566,250$ 13,566,250$ 14,017,644$ Utility Taxes 5,857,500 5,857,500 6,286,242 Licenses & Permits 2,335,050 2,335,050 3,640,730 Charges for Services 1,521,400 1,521,400 1,436,294 Other 900,300 900,300 1,325,850 Total Revenues 24,180,500$ 24,180,500$ 26,706,760$ Expenditures General Government 4,424,525$ 4,381,925$ 4,178,784$ Public Safety 17,099,745 17,308,695 17,225,752 Public Works 886,420 916,420 898,813 Culture and Recreation 928,675 928,675 906,687 Total Expenditures 23,339,365$ 23,535,715$ 23,210,036$ Other Financing Sources (Uses) Transfers In 508,235$ 508,235$ 508,235$ Transfers Out (1,216,725) (1,216,725) (704,518) Total Other Financing Sources (Uses) (708,490)$ (708,490)$ (196,283)$ Change in Fund Balance 132,645$ (63,705)$ 3,300,441$ Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2019 General Fund intergovernmental revenues were over budget due a number of sources coming in higher than projections, but primarily to sales tax revenue receipts being $0.2 million higher than budget projections and income and use tax receipts being $0.2 million higher than budget projections. Utility taxes were over budget by $0.4 million due to a projected business reduction in 2019 that did not occur. Licenses and permits revenue was $1.3 million over budget projections due to increased building permit revenue from commercial development. Other revenue was $0.4 million over budget projections due to strong interest income returns in 2019. General Fund expenditures continue to be conservative in annual spending. Actual expenditures fell short of both the original budget and amended budget in 2019. The Village saw personnel savings due to employee turnover from retirements, the elimination of a position, and actual salary and benefit increases coming in lower than projected. The fund balance in the Hotel/Motel Tax Fund increased $0.8 million from 2018 to 2019, to a total of $5.4 million. Revenues came in $0.3 million over budget in 2019, while expenditures were $4.1 million under the final amended budget. Expenditures were under budget due to the Village cancelling a major streetscape beautification project in 2019. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 14 The fund balance in the Infrastructure Fund decreased $1.4 million from 2018 to 2019, to a total of $8.0 million. Revenues came in $0.3 million over budget in 2019, while expenditures were $5.5 million under the final amended budget. The Village had planned for a number of major street improvement and building projects to kick off in 2019, but activity was lower than projected. Many of these projects will carry into 2020 and beyond. The Infrastructure Fund historically accumulates and saves funds for major projects; therefore, it is common to see significant increases or decreases in fund balance each year depending on project schedules. The fund balance in the Promenade TIF Fund increased $46,709 from 2018 to 2019, to a total of $304,194. The Promenade TIF accumulates incremental property tax revenue of the TIF properties and 20% of the sales and non-home rule sales tax generated by Promenade businesses. These funds are disbursed to TIF bondholders annually based on the agreed upon schedule of payment. Budget Policy In 2003, the Village Board policy was to require budget transfers when an individual program or fund exceeds its budget in total. In addition to these program transfers, beginning in 2004 the Village Board approved an ordinance requiring a budget transfer for any individual line item account that exceeded its budget by more than 110%. In October, 2006 this policy was further revised by eliminating the 110% threshold and instead requiring a line item budget transfer for any variance exceeding $10,000 in a personnel series account and variances exceeding $2,500 in all other accounts. Capital Assets The following schedule reflects the Village’s capital asset balances as of December 31, 2019 and 2018. 2019 2018 2019 2018 2019 2018 Land and Land Right of Way 33.2$ 33.2$ 8.3$ 8.3$ 41.5$ 41.5$ Construction in Progress 4.3 1.7 2.8 0.5 7.1 2.2 Buildings and Land Improvements 25.9 25.6 10.2 9.5 36.1 35.1 Machinery, Vehicles, and Equipment 10.8 10.5 6.1 5.9 16.9 16.4 Infrastructure 37.8 36.9 28.3 26.6 66.1 63.5 Total 112.0$ 107.9$ 55.7$ 50.8$ 167.7$ 158.7$ Accumulated Depreciation (44.0)$ (42.4)$ (21.7)$ (21.0)$ (65.7)$ (63.4)$ Total Capital Assets 68.0$ 65.5$ 34.0$ 29.8$ 102.0$ 95.3$ Table 4 Capital Assets As of December 31, 2019 and 2018 (in millions) Governmental Activities Business-Type Activities Total Primary Government VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 15 At year-end, the Village’s net investment in capital assets (net of accumulated depreciation and related long-term debt) for both its governmental and business-type activities was $101.6 million, an increase of $6.4 million from 2018 (see Note II.C. in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2019 were: For Governmental Activities, capital spending included: Salt storage facility drainage and construction, street reconstruction projects, and various vehicle replacements. For Business-Type Activities, capital spending included: Various water main replacements, Bath & Tennis Club generator replacement, Bath & Tennis Club pool renovation, Golf patio renovation, Golf pro shop renovation, and various equipment replacements. Long-Term Debt As a non-home rule community, the Village’s legal general obligation debt limit is 8.625 percent of equalized assessed valuation (EAV), or $134,790,061 based on January 1, 2019 EAV of $1,562,783,318. As of December 31, 2019, the Village had no debt outstanding applicable to the legal limit (see Note II.E. in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village’s outstanding long-term debt: Governmental Business-Type Total Primary Activities Activities Government TIF Note Payable 2,886,263$ -$ 2,886,263$ Capital Lease Payable 450,871 - 450,871 Total 3,337,134$ -$ 3,337,134$ Table 5 Long-Term Debt As of December 31, 2019 The Village’s note payable is to the Tax Increment Financing (TIF) District developers for certain improvements in the TIF area located at the Promenade (22nd Street and Meyers Road). The TIF Note is not a general obligation to the Village and it expires in 2024. Repayment of the note is limited to the availability of pledged taxes. During 2018, the Village entered into an agreement to lease certain administration, public works, and public safety vehicles. Fourteen (14) vehicles were received and placed into service during 2019, which brings the total number of leased vehicles to fifteen (15). These leases run for three and five years, depending on vehicle type. Economic Factors and Next Year’s Budget Whereas real estate taxes are typically a major source of revenue in most other municipalities, the Village of Oak Brook does not levy a tax on real estate. In addition, since Oak Brook is a non-home rule community and is subject to the tax cap, this effectively limits the Village’s real estate tax levy at $-0-. Thus, as compared to other municipalities, Oak Brook’s revenue stream is VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 16 much more dependent on the local and national economy since sales taxes, utility taxes, and state-shared revenues are the primary sources of income to the Village. During fiscal year 2019, unassigned fund balance in the General Fund increased from $21.7 million to $25.1 million primarily due to revenues coming in slightly higher than budgeted while controlling expenditure increases. Total 2019 General Fund revenues increased $1.2 million from 2018, while expenditures decreased $1.6 million from 2018. The Village strives to maintain a strong reserve balance due to the volatility of its major revenue sources. The 2020 Budget continues to be a conservative financial plan while providing excellent services to its residents and business community. The 2020 budgeted revenues are $56.4 million, an increase of $2.1 million, or 3.8%, from the 2019 Budget (excludes Pension Trust and Foreign Fire Tax Funds). This is primarily due to increases in major taxes such as sales tax, non-home rule tax, and utility tax, a strong building permit forecast, and water rate increases. The total spending in the 2020 Budget is $66.6 million, a decrease of $2.2 million, or 3.2%, from the 2019 Budget (excludes Pension Trust and Foreign Fire Tax Funds. This is mainly due to decreases in capital outlay due to delaying projects to future years. The projected ending cash balance for 2020 in the General Corporate Fund of $20.8 million is equal to 10.7 months of operating expenditures, which is above the six-month reserve requirement. The COVID-19 pandemic will have a great effect on the Village’s future operating budgets. Revenues from sales tax, non-home rule sales tax, income tax, and other major sources are likely to see significant decreases. The Village will continue to monitor the economic effects of the pandemic and has taken steps to reduce the operating budget. Many major capital projects have been cancelled or postponed in order to preserve reserve balances. Staff is also reviewing all discretionary spending and revising operating plans on an ongoing basis. CONTACTING THE VILLAGE’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the Village’s finances and to demonstrate accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Jason Paprocki, Finance Director, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. VILLAGE OF OAK BROOK STATEMENT OF NET POSITION As of December 31, 2019 Governmental Activities Business-Type Activities Totals ASSETS Cash and investments $37,864,125 $7,633,252 $45,497,377 Receivables (net) Property taxes 412,000 -412,000 Sales taxes 5,692,706 -5,692,706 Utility taxes 1,293,440 -1,293,440 Accounts 489,602 -489,602 Billed and unbilled water sales -981,385 981,385 Allotments 34,604 -34,604 Accrued interest 114,352 21,004 135,356 Other 881,748 168,658 1,050,406 Internal balances (330,012)330,012 - Inventories 56,389 107,484 163,873 Prepaid items 170,845 11,214 182,059 Capital Assets Capital assets not being depreciated 37,486,244 11,045,432 48,531,676 Capital assets, net of accumulated depreciation 30,512,973 22,911,753 53,424,726 Total Assets 114,679,016 43,210,194 157,889,210 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - IMRF 3,009,594 1,114,966 4,124,560 Deferred outflows related to pensions - police 1,547,973 -1,547,973 Deferred outflows related to pensions - firefighters'138,178 -138,178 Deferred outflows related to OPEB 683,130 68,910 752,040 Total Deferred Outflows of Resources 5,378,875 1,183,876 6,562,751 LIABILITIES Accounts payable 2,939,563 860,122 3,799,685 Accrued payroll 814,469 64,809 879,278 Accrued interest 96,213 -96,213 Claims payable 121,284 -121,284 Deposits 987,215 113,840 1,101,055 Unearned revenue 146,885 197,569 344,454 Noncurrent Liabilities Due within one year 1,433,179 87,338 1,520,517 Due in more than one year 56,217,270 2,113,869 58,331,139 Total Liabilities 62,756,078 3,437,547 66,193,625 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions - IMRF 345,398 127,959 473,357 Deferred inflows related to pensions - police 1,849,165 -1,849,165 Deferred inflows related to pensions - firefighters'2,247,165 -2,247,165 Deferred inflows related to OPEB 619,283 62,469 681,752 Deferred property taxes 412,000 -412,000 Total Deferred Inflows of Resources 5,473,011 190,428 5,663,439 NET POSITION Net investment in capital assets 67,548,346 33,957,185 101,505,531 Restricted for Infrastructure 8,038,113 -8,038,113 Highways and streets 1,080,230 -1,080,230 Fire department 183,154 -183,154 Culture and recreation 5,434,827 -5,434,827 Economic development 304,194 -304,194 Unrestricted (30,760,062)6,808,910 (23,951,152) TOTAL NET POSITION $51,828,802 $40,766,095 $92,594,897 See accompanying notes to financial statements. 17 VILLAGE OF OAK BROOK STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Governmental Activities General government $5,776,984 $5,252,536 $- Public safety 18,933,249 1,754,040 27,582 Public works 5,536,797 19,028 258,609 Culture, education and recreation 1,813,968 10,093 - Interest and fiscal charges 245,894 -- Total Governmental Activities 32,306,892 7,035,697 286,191 Business-type Activities Waterworks System 7,145,987 10,036,858 - Sports Core 3,704,979 3,328,488 - Golf Surcharge -111,082 - Total Business-type Activities 10,850,966 13,476,428 - Total $43,157,858 $20,512,125 $286,191 General Revenues Taxes Property Sales, local use Utility taxes Hotel/motel Other Intergovernmental - unrestricted State sales tax State income tax Replacement Gain on disposal of capital assets Investment income Miscellaneous Total General Revenues Transfers Total General Revenues and Transfers Change in net position NET POSITION - Beginning of Year NET POSITION - END OF YEAR See accompanying notes to financial statements. 18 Net (Expenses) Revenues and Changes in Net Position Governmental Activities Business-type Activities Totals $(524,448)$-$(524,448) (17,151,627)-(17,151,627) (5,259,160)-(5,259,160) (1,803,875)-(1,803,875) (245,894)-(245,894) (24,985,004)-(24,985,004) -2,890,871 2,890,871 -(376,491)(376,491) -111,082 111,082 -2,625,462 2,625,462 (24,985,004)2,625,462 (22,359,542) 412,066 -412,066 6,005,876 -6,005,876 6,286,242 -6,286,242 1,292,756 -1,292,756 101,272 -101,272 12,516,616 -12,516,616 839,059 -839,059 332,383 -332,383 142,467 -142,467 1,075,064 207,471 1,282,535 103,177 114,740 217,917 29,106,978 322,211 29,429,189 (704,518)704,518 - 28,402,460 1,026,729 29,429,189 3,417,456 3,652,191 7,069,647 48,411,346 37,113,904 85,525,250 $51,828,802 $40,766,095 $92,594,897 See accompanying notes to financial statements. 19 VILLAGE OF OAK BROOK BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2019 General Hotel/Motel Tax Infrastructure Promenade TIF AS SETS Cash and investments $21,266,132 $5,424,703 $8,248,160 $304,194 Receivables Property taxes ---412,000 Sales taxes 3,907,430 -1,785,276 - Utility taxes 1,293,440 --- Accounts 489,602 --- Allotments ---- Accrued interest 85,654 14,227 11,805 - Other 476,585 258,737 126,344 - Inventories 1,183 --- Prepaid items 88,889 -7,415 - TOTAL ASSETS $27,608,915 $5,697,667 $10,179,000 $716,194 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $426,392 $262,840 $1,959,427 $- Accrued payroll 750,887 -55,116 - Deposits 987,215 --- Unearned revenues 111,634 --- Total Liabilities 2,276,128 262,840 2,014,543 - Deferred Inflows of Resources Deferred property taxes ---412,000 Unavailable other receivables 279,019 -126,344 - Total Deferred Inflows of Resources 279,019 -126,344 412,000 Fund Balances Nonspendable for inventory 1,183 --- Nonspendable for prepaid items 88,889 -7,415 - Restricted for infrastructure --8,030,698 - Restricted for highways and streets ---- Restricted for fire department ---- Restricted for culture and recreation -5,434,827 -- Restricted for economic development ---304,194 Unassigned 24,963,696 --- Total Fund Balances 25,053,768 5,434,827 8,038,113 304,194 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $27,608,915 $5,697,667 $10,179,000 $716,194 See accompanying notes to financial statements. 20 Nonmajor Governmental Funds Totals $1,228,306 $36,471,495 -412,000 -5,692,706 -1,293,440 -489,602 34,604 34,604 474 112,160 -861,666 -1,183 -96,304 $1,263,384 $45,465,160 $-$2,648,659 -806,003 -987,215 -111,634 -4,553,511 -412,000 -405,363 -817,363 -1,183 -96,304 -8,030,698 1,080,230 1,080,230 183,154 183,154 -5,434,827 -304,194 -24,963,696 1,263,384 40,094,286 $1,263,384 $45,465,160 See accompanying notes to financial statements. 21 VILLAGE OF OAK BROOK RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION As of December 31, 2019 Total Fund Balances - Governmental Funds $40,094,286 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities, excluding the internal service fund capital assets below, are not financial resources and, therefore, are not reported in the governmental funds.63,915,514 Unavailable other receivables recognized in the statement of net position do not provide current financial resources and are included as deferred inflows of resources in the governmental funds balance sheet.405,363 Interest payable is not due and payable in the current period and, therefore, is not reported in the governmental funds.(96,213) Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.4,592,381 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(4,429,865) Deferred outflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds.677,382 Deferred inflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds.(614,072) Internal service funds are reported in the statement of net position as governmental activities.4,283,660 Some liabilities (excluding those reported in the internal service funds amount above), including long-term debt, are not due and payable in the current period and therefore, are not reported in the funds. Notes payable (2,886,263) Compensated absences payable (1,053,578) Net pension liability (47,440,742) Total other postemployment benefit liability (5,619,051) NET POSITION OF GOVERNMENTAL ACTIVITIES $51,828,802 See accompanying notes to financial statements. 22 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 General Hotel/Motel Tax Infrastructure Promenade TIF REVENUES Intergovernmental $14,017,644 $-$-$96,992 Non-home rule sales tax --5,642,898 - Utility taxes 6,286,242 --- Hotel and motel taxes -1,292,756 -- Licenses and permits 3,640,730 --- Charges for services 1,436,294 -1,556 - Property taxes ---412,066 Fines, forfeitures and penalties 201,054 --- Investment income 613,024 139,722 248,179 2,379 Miscellaneous revenues 511,772 193,931 14,022 - Total Revenues 26,706,760 1,626,409 5,906,655 511,437 EXPENDITURES Current General government 4,178,784 103,115 167,955 3,748 Public safety 17,225,752 --- Public works 898,813 -7,366,689 - Culture and recreation 906,687 679,358 -- Debt Service Principal ---217,000 Interest and fiscal charges ---243,980 Total Expenditures 23,210,036 782,473 7,534,644 464,728 Excess (deficiency) of revenues over expenditures 3,496,724 843,936 (1,627,989)46,709 OTHER FINANCING SOURCES (USES) Transfers in 508,235 -216,125 - Transfers out (704,518)--- Total Other Financing Sources (Uses)(196,283)-216,125 - Net Change in Fund Balances 3,300,441 843,936 (1,411,864)46,709 FUND BALANCES - Beginning of Year 21,753,327 4,590,891 9,449,977 257,485 FUND BALANCES - END OF YEAR $25,053,768 $5,434,827 $8,038,113 $304,194 See accompanying notes to financial statements. 23 Nonmajor Governmental Funds Totals $323,863 $14,438,499 -5,642,898 -6,286,242 -1,292,756 -3,640,730 -1,437,850 -412,066 2,322 203,376 22,956 1,026,260 81 719,806 349,222 35,100,483 -4,453,602 143,929 17,369,681 -8,265,502 -1,586,045 -217,000 -243,980 143,929 32,135,810 205,293 2,964,673 -724,360 -(704,518) -19,842 205,293 2,984,515 1,058,091 37,109,771 $1,263,384 $40,094,286 See accompanying notes to financial statements. 24 VILLAGE OF OAK BROOK RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2019 Net change in fund balances - total governmental funds $2,984,515 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the statement of activities. Some items reported as operating expenditures in the fund financial statements but are capitalized in the government-wide statements 4,041,523 Depreciation is reported in the government-wide financial statements (1,680,099) Net book value of assets retired (14,163) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements.(28,695) Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal repaid 217,000 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences 707 Interest payable 7,229 Total postemployment benefits liability (503,765) Net pension liability 3,227,577 Deferred outflows of resources related to pensions (3,020,372) Deferred inflows of resources related to pensions (868,576) Deferred outflows of resources related to OPEB 614,218 Deferred inflows of resources related to OPEB (363,299) The change in net position of certain activities of internal service funds is included in governmental activities.(1,196,344) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $3,417,456 See accompanying notes to financial statements. 25 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2019 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals ASSETS Current Assets Cash and investments $6,937,632 $349,076 $346,544 $7,633,252 Receivables Billed and unbilled water sales 981,385 --981,385 Accrued interest 19,924 -1,080 21,004 Other 52,792 115,866 -168,658 Inventories -107,484 -107,484 Prepaid items 11,214 --11,214 Total Current Assets 8,002,947 572,426 347,624 8,922,997 Noncurrent Assets Capital assets not being depreciated 2,598,652 8,446,780 -11,045,432 Capital assets, net of accumulated depreciation 18,624,884 4,286,869 -22,911,753 Total Noncurrent Assets 21,223,536 12,733,649 -33,957,185 Total Assets 29,226,483 13,306,075 347,624 42,880,182 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - IMRF 407,701 707,265 -1,114,966 Deferred outflows related to OPEB 33,609 35,301 -68,910 Total Deferred Outflows of Resources 441,310 742,566 -1,183,876 See accompanying notes to financial statements. 26 Governmental Activities - Internal Service Funds $1,392,630 - 2,192 20,082 55,206 74,541 1,544,651 - 4,083,703 4,083,703 5,628,354 103,364 5,748 109,112 See accompanying notes to financial statements. 27 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2019 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Funds Totals LIABILITIES Current Liabilities Accounts payable 830,862 29,260 -860,122 Accrued payroll 33,201 31,608 -64,809 Compensated absences payable 48,150 39,188 -87,338 Deposits 1,277 112,563 -113,840 Unearned revenues -197,569 -197,569 Claims payable ---- Total Current Liabilities 913,490 410,188 -1,323,678 Noncurrent Liabilities Net pension liability - IMRF 563,943 978,304 -1,542,247 Total other post employment benefits liability 278,788 292,834 -571,622 Lease obligations ---- Total Noncurrent Liabilities 842,731 1,271,138 -2,113,869 Total Liabilities 1,756,221 1,681,326 -3,437,547 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions - IMRF 46,790 81,169 -127,959 Deferred inflows related to OPEB 30,467 32,002 -62,469 Total Deferred Inflows of Resources 77,257 113,171 -190,428 NET POSITION Investment in capital assets 21,223,536 12,733,649 -33,957,185 Unrestricted 6,610,779 (479,505)347,624 6,478,898 TOTAL NET POSITION $27,834,315 $12,254,144 $347,624 40,436,083 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds.330,012 Net Position Business-type Activities $40,766,095 Net internal service funds reported in the statement of net position as governmental activities See accompanying notes to financial statements. 28 Governmental Activities - Internal Service Funds 290,904 8,466 9,286 - 35,251 121,284 465,191 142,975 47,683 450,871 641,529 1,106,720 11,863 5,211 17,074 4,083,703 529,969 $4,613,672 (330,012) $4,283,660 See accompanying notes to financial statements. 29 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals OPERATING REVENUES Charges for services $ 10,040,808 $ 3,449,637 $ 111,082 $ 13,601,527 Total Operating Revenues 10,040,808 3,449,637 111,082 13,601,527 OPERATING EXPENSES Operation of facilities 6,534,487 3,367,866 - 9,902,353 Claims and insurance ---- Miscellaneous ---- Depreciation and amortization 512,104 327,397 -839,501 Total Operating Expenses 7,046,591 3,695,263 -10,741,854 Operating Income (Loss)2,994,217 (245,626)111,082 2,859,673 NONOPERATING REVENUES (EXPENSES) Investment income 196,566 63 10,842 207,471 Investment expense ---- Gain (loss) on disposal of capital assets (3,950)(6,410)-(10,360) Total Nonoperating Revenues (Expenses)192,616 (6,347)10,842 197,111 Income (Loss) Before Transfers 3,186,833 (251,973)121,924 3,056,784 TRANSFERS Transfers in 221,085 917,487 - 1,138,572 Transfers out --(212,969)(212,969) Total Transfers 221,085 917,487 (212,969)925,603 Change in Net Position 3,407,918 665,514 (91,045)3,982,387 NET POSITION - Beginning of Year 24,426,397 11,588,630 438,669 NET POSITION - END OF YEAR $ 27,834,315 $ 12,254,144 $ 347,624 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds (330,196) Change in Net Position of Business-type Activities $ 3,652,191 See accompanying notes to financial statements. 30 Governmental Activities - Internal Service Funds $4,206,374 4,206,374 698,195 3,608,813 34,528 642,227 4,983,763 (777,389) 48,806 (9,143) 156,631 196,294 (581,095) 54,555 (1,000,000) (945,445) (1,526,540) 6,140,212 $4,613,672 See accompanying notes to financial statements. 31 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $10,316,899 $3,625,047 $111,082 $14,053,028 Receipts from internal service transactions ---- Paid to suppliers for goods and services (6,041,993)(2,272,662)-(8,314,655) Paid to employees for services (541,128)(1,183,509)-(1,724,637) Net Cash Flows From Operating Activities 3,733,778 168,876 111,082 4,013,736 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured 1,131,291 -248,906 1,380,197 Investment income 175,479 63 11,580 187,122 Purchase of investments (2,907,509)--(2,907,509) Net Cash Flows From Investing Activities (1,600,739)63 260,486 (1,340,190) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Net transfers in (out)221,085 917,487 (212,969)925,603 Net Cash Flows From Noncapital Financing Activities 221,085 917,487 (212,969)925,603 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (3,629,771)(930,247)-(4,560,018) Proceeds from sale of capital assets ---- Net Cash Flows From Capital and Related Financing Activities (3,629,771)(930,247)-(4,560,018) Net Change in Cash and Cash Equivalents (1,275,647)156,179 158,599 (960,869) CASH AND CASH EQUIVALENTS - Beginning of Year 4,746,202 192,897 -4,939,099 CASH AND CASH EQUIVALENTS - END OF YEAR $3,470,555 $349,076 $158,599 $3,978,230 See accompanying notes to financial statements. 32 Governmental Activities - Internal Service Funds $1,136,072 3,130,534 (4,235,910) (141,382) (110,686) 238,121 33,811 (32,720) 239,212 54,555 54,555 (442,209) (156,631) (598,840) (415,759) 1,427,001 $1,011,242 See accompanying notes to financial statements. 33 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2019 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING AC TIVITIES Operating income (loss)$2,994,217 $(245,626)$111,082 $2,859,673 Adjustments to Reconcile Operating Income to Net Cash Flows From Operating Activities Depreciation 512,104 327,397 -839,501 Changes in assets and liabilities Accounts receivable 260,915 3,007 -263,922 Inventory -(4,937)-(4,937) Prepaids (11,214)24,414 -13,200 Deferred outflows - pensions (333,773)(589,891)-(923,664) Deferred outflows - OPEB (30,910)(32,091)-(63,001) Billed and unbilled water sales 14,489 --14,489 Accounts payable (17,839)(39,480)-(57,319) Customer deposits 687 (3,109)-(2,422) Accrued salaries 8,204 3,741 -11,945 Compensated absences payable 426 693 -1,119 Claims payable ---- Total OPEB liability 60,185 32,868 -93,053 Net pension liability 497,130 872,227 -1,369,357 Deferred inflows - pensions (240,593)(375,107)-(615,700) Deferred inflows - OPEB 19,750 19,258 -39,008 Unearned revenues -175,512 -175,512 NET CASH FLOWS FROM OPERATING ACTIVITIES $3,733,778 $168,876 $111,082 $4,013,736 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION - PROPRIETARY FUNDS Cash and cash equivalents $3,470,555 $349,076 $158,599 $3,978,230 Investments 3,467,077 -187,945 3,655,022 CASH AND INVESTMENTS $6,937,632 $349,076 $346,544 $7,633,252 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None See accompanying notes to financial statements. 34 Governmental Activities - Internal Service Funds $(777,389) 642,227 58,291 (3,370) (28,214) (85,436) (5,201) - 30,864 - 1,853 467 (22,065) 3,364 126,773 (57,829) 3,038 1,941 $(110,686) $1,011,242 381,388 $1,392,630 See accompanying notes to financial statements. 35 VILLAGE OF OAK BROOK STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS As of December 31, 2019 Pension Trusts ASSETS Cash $142,577 Investments Certificates of deposit 627,247 Money markets 3,282,704 U.S. treasuries 1,201,193 U.S. agencies 11,486,608 State and local obligations 1,951,782 Corporate bonds 7,394,559 Mutual funds 45,858,388 Accrued interest 170,533 Prepaid items 4,622 Total Assets 72,120,213 LIABILITIES Accounts payable 40,633 Total Liabilities 40,633 NET POSITION Restricted for pension benefits 72,079,580 TOTAL NET POSITION $72,079,580 See accompanying notes to financial statements. 36 VILLAGE OF OAK BROOK STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2019 Pension Trust Funds AD DITIONS Contributions Employer $4,208,036 Employee 686,875 Total Contributions 4,894,911 Investment income Net appreciation in fair value 9,602,727 Interest 2,033,134 Total Investment Income 11,635,861 Less Investment expense (135,159) Net Investment Income 11,500,702 Total Additions 16,395,613 DEDUCTIONS Benefits and refunds 5,794,557 Administrative 87,289 Total Deductions 5,881,846 Change in Fiduciary Net Position 10,513,767 NET POSITION - Beginning of Year 61,565,813 NET POSITION - END OF YEAR $72,079,580 See accompanying notes to financial statements. 37 VILLAGE OF OAK BROOK INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE Page I Summary of Significant Accounting Policies 39 A.Reporting Entity 39 B.Government-W ide and Fund Financial Statements 40 C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation 43 D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 44 1.Deposits and Investments 44 2.Receivables 47 3.Inventories and Prepaid Items 48 4.Capital Assets 48 5.Deferred Outflows of Resources 49 6.Compensated Absences 49 7.Long-Term Obligations 50 8.Deferred Inflows of Resources 50 9. Equity Classifications 50 II Detailed Notes on All Funds 53 A.Deposits and Investments 53 B.Receivables 59 C.Capital Assets 60 D.Interfund Transfers 62 E.Long-Term Obligations 63 F.Lease Disclosures 64 III Other Information 65 A.Employees' Retirement System 65 B.Risk Management 78 C.Commitments and Contingencies 80 D.Other Postemployment Benefits 80 E.Subsequent Events 83 F.Tax Abatement 83 G.Effect of New Accounting Standards on Current-Period Financial Statements 84 See accompanying notes to financial statements. 38 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Oak Brook, Illinois (the Village) was incorporated in 1958. The Village is a non home-rule municipality, under the 1970 Illinois Constitution, located in DuPage County, Illinois. The Village operates under a President-Trustee form of government and provides the following services as authorized by its charter: public safety (police and fire protection), recreation facilities, a free public library, water supply, storm water collection, public works operations, road maintenance, building and inspectional services and general administrative services. The accounting policies of the Village conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). A.REPORTING ENTITY This report includes all of the funds of the Village. The reporting entity for the Village consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The Village has not identified any organizations that meet this criteria. Fiduciary Component Units The Police Pension Employees Retirement System (PPERS) is established for the Village's police employees. PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s President, one pension beneficiary elected by the membership, and two police employees elected by the membership constitute the pension board. The Village and the PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. PPERS is reported as a fiduciary component unit pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the PPERS. The Firefighters’ Pension Employees Retirement System (FPERS) is established for the Village's firefighters. FPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s President, one pension beneficiary elected by the membership; and two fire employees elected by the membership constitute the pension board. The Village and the FPERS participants are obligated to fund all FPERS costs based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise assumed the obligation to make contributions to the pension plan. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. FPERS is reported as a fiduciary component unit and the data for the pension is included in the government's fiduciary fund financial statements as a pension trust fund. No separate annual financial report is issued for the FPERS. 39 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds.The statements distinguish between governmental and business-type activities. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and used are not eliminated on these statements. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Village does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the Village are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues, and expenditures/expenses. 40 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the Village believes is particularly important to financial statement users may be reported as a major fund. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: General Fund - accounts for the Village's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Hotel/Motel Tax Fund - used to account for local hotel/motel tax receipts restricted for promoting tourism and conventions in the Village. Infrastructure Fund - used to account for revenues restricted for and expenditures relative to the construction and maintenance of roadway, drainage and bike trail improvements. Promenade TIF Fund - used to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. The Village reports the following major enterprise funds: Waterworks System Fund - accounts for the revenues and expenses relative to the operation of the water utility. Sports Core Fund - accounts for the revenues and expenses relative to the operation of the Oak Brook Sports Core. 41 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) The Village reports the following nonmajor governmental and enterprise funds: Special Revenue Funds - used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Motor Fuel Tax Foreign Fire Insurance Enterprise Fund - used to account for and report any activity for which a fee is charged to external uses for goods or services, and must be used for activities which meet certain debt or cost recovery criteria. Golf Surcharge In addition, the Village reports the following fund types: Internal Service Funds - used to account for the Village's self-insured employee health and dental insurance program; the operation and maintenance of the Village's vehicle fleet equipment, and the Village's capital replacement program provided to other departments or agencies of the Village on a cost reimbursement basis. Self-Insurance Garage Capital Replacement Pension Trust Funds - used to account for and report resources that are required to be held in trust for the members and beneficiaries of the Village's defined benefit pension plans. Police Pension Firefighters' Pension 42 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales taxes and telecommunication taxes which use a 90-day period and income taxes a 120-day period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled the resources and the amounts are available. Amounts owed to the Village which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. 43 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements (cont.) The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Waterworks and Sports Core funds are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY 1.Deposits and Investments For purposes of the statement of cash flows, the Village's proprietary funds consider all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Illinois Statutes authorize the Village to make deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, and the Illinois Funds Investment Pool. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions, and the Illinois insurance company general and separate accounts, mutual funds meeting certain requirements, equity securities, and corporate bonds meeting certain requirements. Pension funds with net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The police pension fund’s investment policy allows investments in all of the above listed accounts. The firefighters' pension fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. 44 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) The Police Pension Fund's investment policy allows investments in all of the above listed accounts. The police pension fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Money market mutual funds 5%0.50% Fixed income 45%2.50% Mutual funds 55%5.50% Illinois Compiled Statues (ILCS) limit the Police Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2019 is summarized in the table above. The Firefighters' Pension Fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. The Firefighters’ Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Money market mutual funds 5%0.50% Fixed income 35%2.50% Mutual funds 60%5.50% Illinois Compiled Statues (ILCS) limit the Firefighters' Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. 45 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2019 is summarized in the table above. The Village has adopted an investment policy. That policy follows the state statute for allowable investments. Interest Rate Risk In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to remain sufficiently liquid to enable the Village to meet all operating requirements which may be reasonably anticipated in any Village fund. Maturities of investments in all funds covered by this policy shall not exceed five years, unless a temporary extension of maturities is approved by the Board of Trustees. The Police and Firefighters' Pensions' investment policies limits their exposure to interest rate risk by structuring the portfolio to provide liquidity for operating expenses and benefits and maximizing yields for funds not needed within a one-year period. The investment policies do not limit the maximum maturity length of investments in the Police and Firefighters' Pensions' Funds. Credit Risk The Village limits its exposure to credit risk by investing in securities issued by the United States Government, securities issued by agencies of the United States Government, which are implicitly guaranteed by the United States Government, or corporate bonds rated within the three highest classifications by at least two standard rating services. The Police and Firefighters' Pensions' both strive to limit its exposure to credit risk, by primarily investing in securities issued by the United States Government that carry an im plicit guarantee, high quality state or local obligations or corporate bonds rate within the three highest classifications by at least two standard rating services. Concentration of Credit Risk In order to limit the exposure to concentration of credit risk, the Village's investment policy limits investments in any one financial institution to 25%, exclusive of securities guaranteed by the full faith and credit of the United States Government or obligations of agencies of the United States Government. 46 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) Custodial Credit Risk - Deposits The Village's, Police Pension's and Firefighters' Pension's investment policies require pledging of collateral with a fair value of 110% of all bank balances in excess of federal depository insurance with the collateral held by an agent of the Village in the Village's name. Custodial Credit Risk - Investments The Village investment policy limits its exposure to custodial credit risk by utilizing an independent, third party institution, to act as a custodian for its securities and collateral. The Police and Firefighters' Pensions limit their exposure to custodial credit by utilizing a Trust Department of to act as a custodian for its fixed income and equity securities. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on quoted market prices. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investments could be sold. See Note II. A. for further information. 2.Receivables Property taxes for levy year 2019 attaches as an enforceable lien on January 1, 2019, on property values assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax Levy Ordinance). Tax bills for levy year 2019 are prepared by DuPage County and issued on or about May 1, and August 1, and are payable in two installments, on or about June 1, and September 1. 47 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 2.Receivables (cont.) The county collects such taxes and remits them periodically. The Village does not have a tax levy but does receive a share of road and bridge taxes from local townships, as well as incremental property taxes from the Butterfield/Meyers Road Redevelopment Project Area (TIF). During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. 3.Inventories and Prepaid Items Inventories are recorded based on the average cost method, not in excess of replacement cost. Inventories in the General Fund and Garage Fund consist of expendable supplies held for consumption; inventories in the Sports Core Fund consist of inventory held for resale. The cost is recorded as an expenditure at the time individual inventory items are utilized or sold. General Fund inventories are equally offset by nonspendable fund balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items/expenses is recorded as expenditures/expenses when consumed rather than when purchased. 4.Capital Assets Government-Wide Statements Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of $5,000 or more, and an estimated useful life in excess of 1 year. All capital assets are valued at historical cost, or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. The costs of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend asset lives are not capitalized. 48 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 4.Capital Assets (cont.) Government-Wide Statements (cont.) Additions to and replacements of capital assets of business-type activities are recorded at original cost, which includes material, labor, overhead, and an allowance for the cost of funds used during construction when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense incurred during construction netted against any interest revenue from temporary investment of borrowed fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is charged to accumulated depreciation. Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation and amortization reflected in the statement of net position. Depreciation and amortization is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Land improvements 20 Years Buildings and building improvements 5-50 Years Equipment 5-20 Years Vehicles 2-20 Years Infrastructure 20-75 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. 5. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. 6.Compensated Absences Under terms of employment, employees are granted vacation, sick and compensatory leave in varying amounts. Only benefits considered to be vested are disclosed in these statements. 49 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 6. Long-Term Obligations/Conduit Debt (cont.) All vested vacation, sick leave and compensatory leave pay is accrued when incurred in the government- wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation, sick leave and compensatory leave will be made at rates in effect when the benefits are used. Accumulated vacation, sick leave and compensatory leave at December 31, 2019, are determined on the basis of current salary rates and include salary related payments. 7.Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes payable, net pension liabilities, net other postemployment benefit obligations payable and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. 8.Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. 9. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. 50 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications Government-Wide Statements (cont.) c. Unrestricted net position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (ordinance) of the Village Board. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Village Board that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Village Board has, by resolution, adopted a financial policy authorizing the Finance Director to assign amounts for a specific purpose. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. 51 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications Fund Statements (cont.) The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The Village has established fund balance policies for their governmental funds. It is the policy of the Village that every effort be made to maintain the greater of: (a) an uncommitted cash balance equal to six months of budgeted operating expenditures for the forthcoming fiscal year, exclusive of budgeted capital projects; or (b) an uncommitted cash balance equal to not less than six months of projected expenditures, exclusive of capital projects, based on the average of the first three years of the most recent Five Year Financial Plan adopted by the Village Board. 52 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS A.DEPOSITS AND INVESTMENTS The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Petty cash $ 4,100 $ - N/A Deposits 1,979,275 2,200,377 Custodial credit risk Money markets 3,282,704 3,282,704 N/A Illinois funds 20,103,182 20,092,567 Credit risk Certificates of deposit (Non-negotiable)6,897,628 6,897,628 Custodial credit risk Corporate bonds 15,764,902 15,764,902 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk U.S. treasury obligations 1,201,193 1,201,193 Custodial credit risk, interest rate risk U.S. agency obligations - explicit 173 173 Custodial credit risk, interest rate risk U.S. agency obligations - implicit 14,187,870 14,187,870 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Mutual funds - other than bond funds 45,858,388 45,858,388 N/A State and local obligations 8,163,020 8,163,020 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Total Deposits and Investments $117,442,435 $117,648,822 53 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Reconciliation to financial statements Per statement of net position Cash and investments $45,497,377 Per statement of net position - fiduciary funds Cash 142,577 Certificates of deposit 627,247 Money markets 3,282,704 U.S. treasuries 1,201,193 U.S. agencies 11,486,608 Corporate bonds 7,394,559 Mutual funds 45,858,388 State and local obligations 1,951,782 Total Deposits and Investments $117,442,435 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. As of December 31, 2019, investments were measured using the market valuation method and valuation inputs as follows: Village Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$2,701,435 $-$2,701,435 State and local obligations -6,211,238 -6,211,238 Corporate bonds -8,370,343 -8,370,343 Illinois funds -20,103,182 -20,103,182 Total $-$37,386,198 $-$37,386,198 54 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Police Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$4,184,069 $-$4,184,069 U.S. treasuries -224,982 -224,982 State and local obligations -766,013 -766,013 Mutual funds 26,888,453 --26,888,453 Corporate bonds -5,453,629 -5,453,629 Total $26,888,453 $10,628,693 $-$37,517,146 Firefighters' Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$7,302,539 $-$7,302,539 U.S. treasuries -976,211 -976,211 State and local obligations -1,185,769 -1,185,769 Mutual funds 18,969,935 --18,969,935 Corporate bonds -1,940,930 -1,940,930 Total $18,969,935 $11,405,449 $-$30,375,384 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may not be returned to the Village. The Village does not have any deposits exposed to custodial credit risk. Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Village does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. 55 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Credit Risk (cont.) As of December 31, 2019, investments were rated as follows: Village Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $2,701,435 $-$489,608 $-$-$2,211,827 State and local obligations 6,211,238 -5,186,018 497,335 527,885 - Corporate bonds 8,370,343 --5,879,176 2,491,167 - Illinois funds 20,103,182 20,103,182 ---- Totals $37,386,198 $20,103,182 $5,675,626 $6,376,511 $3,019,052 $2,211,827 Police Pension Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $4,183,896 $-$4,183,896 $-$-$- State and local obligations 766,013 -510,293 255,720 -- Corporate bonds 5,453,629 -269,612 3,071,137 2,112,880 - Totals $10,403,538 $-$4,963,801 $3,326,857 $2,112,880 $- Firefighters' Pension Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $7,302,539 $-$7,302,539 $-$-$- State and local obligations 1,185,769 152,202 1,033,567 --- Corporate bonds 1,940,930 106,744 823,299 917,778 93,109 - Totals $10,429,238 $258,946 $9,159,405 $917,778 $93,109 $- 56 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At December 31, 2019, the investment portfolio was concentrated as follows: Village Issuer Investment Type Percentage of Net Position Wells Fargo Corporate bonds 6.00% Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2019, investments were as follows: Village Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - implicit $2,701,435 $-$489,608 $-$2,211,827 State and local obligations 6,211,238 2,749,376 3,461,862 -- Corporate bonds 8,370,343 3,107,811 5,262,532 -- Totals $17,283,016 $5,857,187 $9,214,002 $-$2,211,827 57 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Interest Rate Risk (cont.) Police Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 U.S. agency securities - implicit $4,183,896 $759,433 $1,439,117 $1,985,346 U.S. agency securities - explicit 173 -173 - U.S. treasury 224,982 224,982 -- State and local obligations 766,013 100,137 565,618 100,258 Corporate bonds 5,453,629 537,938 3,979,489 936,202 Totals $10,628,693 $1,622,490 $5,984,397 $3,021,806 Firefighters' Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - implicit $7,302,539 $150,858 $1,252,874 $5,483,992 $414,815 U.S. treasury 976,211 100,078 508,930 367,203 - State and local obligations 1,185,769 153,074 414,145 564,457 54,093 Corporate bonds 1,940,930 50,148 1,147,054 743,728 - Totals $11,405,449 $454,158 $3,323,003 $7,159,380 $468,908 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2019, the annual money-weighted rate of return on the police pension plan investments, net of pension plan investment expense, was 18.71%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 58 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Firefighters' Pension Fund For the year ended December 31, 2019, the annual money-weighted rate of return on the firefighters' pension plan investments, net of pension plan investment expense, was 19.01%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. See Note I.D.1. for further information on deposit and investment policies. B.RECEIVABLES All of the receivables on the balance sheet are expected to be collected within one year. 59 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated Land $616,829 $-$-$616,829 Land right of way 32,551,116 --32,551,116 Construction in progress 1,699,947 2,729,476 111,124 4,318,299 Total Capital Assets Not Being depreciated 34,867,892 2,729,476 111,124 37,486,244 Capital assets being depreciated Buildings, building and land improvements 25,632,010 305,537 34,474 25,903,073 Computer equipment 1,116,242 58,587 -1,174,829 Other equipment 1,884,842 156,206 36,163 2,004,885 Vehicles 127,047 --127,047 Infrastructure 36,900,505 902,841 -37,803,346 Internal service fund vehicles 7,378,167 831,571 660,585 7,549,153 Total Capital Assets Being Depreciated 73,038,813 2,254,742 731,222 74,562,333 Total Capital Assets 107,906,705 4,984,218 842,346 112,048,577 Less: Accumulated depreciation for Buildings, building and land improvements (10,139,499)(769,826)34,474 (10,874,851) Computer equipment (930,954)(62,694)-(993,648) Other equipment (1,533,473)(80,943)22,000 (1,592,416) Vehicles (12,705)(12,705)-(25,410) Infrastructure (26,343,654)(753,931)-(27,097,585) Internal service fund vehicles (3,483,808)(642,227)660,585 (3,465,450) Total Accumulated depreciation (42,444,093)(2,322,326)717,059 (44,049,360) Net Capital Assets Being Depreciated 30,594,720 (67,584)14,163 30,512,973 Total Governmental Activities Capital Assets, Net of Accumulated Depreciation $65,462,612 $2,661,892 $125,287 $67,999,217 60 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Governmental Activities General government $669,529 Public safety 515,412 Public works 1,009,536 Culture and recreation 127,849 Total Governmental Activities Depreciation Expense $2,322,326 Beginning Balance Additions Deletions Ending Balance Business-type Activities Capital assets not being depreciation Land $8,292,265 $-$-$8,292,265 Construction in progress 501,442 2,714,086 462,361 2,753,167 Total Capital Assets Not Being depreciation 8,793,707 2,714,086 462,361 11,045,432 Capital assets being depreciated Land improvements 3,320,638 --3,320,638 Buildings and building improvements 6,098,717 849,241 63,967 6,883,991 Infrastructure 26,643,337 1,725,044 41,828 28,326,553 Vehicles, machinery, and equipment 5,934,246 165,711 43,163 6,056,794 Total Capital Assets Being Depreciated 41,996,938 2,739,996 148,958 44,587,976 Total Capital Assets 50,790,645 5,454,082 611,319 55,633,408 Less: Accumulated depreciation for Land improvements (2,677,788)(69,421)-(2,747,209) Buildings and building improvements (3,451,559)(178,127)57,557 (3,572,129) Infrastructure (9,833,041)(431,822)37,878 (10,226,985) Vehicles, machinery, and equipment (5,012,932)(160,131)43,163 (5,129,900) Total Accumulated depreciation (20,975,320)(839,501)138,598 (21,676,223) Net Capital Assets Being Depreciated 21,021,618 1,900,495 10,360 22,911,753 Business-type Capital Assets, Net of Accumulated depreciation $29,815,325 $4,614,581 $472,721 $33,957,185 61 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Business-type Activities Waterworks $512,104 Sports Core 327,397 Total Business-type Activities Depreciation Expense $839,501 D.INTERFUND TRANSFERS The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose General Internal Service Funds $508,235 Surplus equity transfer Infrastructure Internal Service Funds 216,125 Surplus equity transfer Water Internal Service Funds 221,085 Surplus equity transfer Internal Service Funds Internal Service Funds 54,555 Surplus equity transfer Sports Core General Fund 704,518 Fund capital improvements Sports Core Nonmajor Proprietary 212,969 Fund capital improvements Total - Fund Financial Statements $1,917,487 Less: Fund eliminations (267,524) Less: Government-wide eliminations (945,445) Total Transfers - Government-W ide Statement of Activities $704,518 Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 62 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2019, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Notes payable $3,103,263 $-$217,000 $2,886,263 $280,000 Net pension liability - IMRF 472,586 4,162,766 472,414 4,162,938 - Net pension liability - police 25,307,972 -3,383,576 21,924,396 - Net pension liability - fire 24,903,963 -3,407,580 21,496,383 - Capital leases 61,509 435,544 46,182 450,871 90,315 Total other postemployment benefit liability 5,159,605 715,348 208,219 5,666,734 - Compensated absences 1,063,104 1,062,864 1,063,104 1,062,864 1,062,864 Total Governmental Activities Long-Term Liabilities $60,072,002 $6,376,522 $8,798,075 $57,650,449 $1,433,179 Business-type Activities Net pension liability - IMRF $172,890 $1,544,372 $175,015 $1,542,247 $- Total other postemployment benefit liability 478,569 114,057 21,004 571,622 - Compensated absences 86,219 87,338 86,219 87,338 87,338 Total Business-type Activities Long-Term Liabilities $737,678 $1,745,767 $282,238 $2,201,207 $87,338 The Village is subject to the Illinois Municipal Code, which limits the amount of certain indebtedness to 8.625% of the most recent available equalized assessed valuation of the Village. As of December 31, 2019, the statutory debt limit for the Village was $134,790,061, providing a debt margin of $134,790,061. The compensated absences for governmental activities typically have been liquidated by the General Fund and the Infrastructure Fund and are considered all due within one year. The net pension liabilities and total other postemployment benefit liability have typically been liquidated by the General Fund. 63 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS (cont.) Notes Payable The Village has issued notes payable related to developer and intergovernmental agreements. Notes payable at December 31, 2019 consist of the following: Governmental Activities Notes Payable Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2019 TIF developer note June 6, 2005 February 1, 2024 8.00%$4,250,000 $2,886,263 Total Governmental Activities Notes Payable $2,886,263 The repayment of the TIF note payable is based on incremental real estate tax and sales tax received. As such, there is no debt service to maturity schedule. Capital Leases Refer to Note II. F. F. LEASE DISCLOSURES Lessee - Capital Leases In 2019 the Village acquired capital assets through a lease/purchase agreement. The gross amount of assets under capital leases is $634,203, which are included in capital assets in the governmental activities. The future minimum lease obligations and the net present value on these minimum lease payments as of December 31, 2019, are as follows: Governmental Activities Years Principal Interest Totals 2020 $90,315 $16,014 $106,329 2021 90,018 15,959 105,977 2022 123,785 14,266 138,051 2023 63,766 10,719 74,485 2024 82,987 3,629 86,616 Totals $450,871 $60,587 $511,458 64 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION A.EMPLOYEES' RETIREMENT SYSTEM The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan which is a single-employer pension plan; and the Firefighters' Pension Plan which is a single-employer pension plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension plans. IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. Pension expense for IMRF, the Police Pension Plan and the Firefighters' Pension Plan were $(84,875), $3,092,993, and $2,243,611, respectively, for an aggregate total pension expense of $5,251,729. Illinois Municipal Retirement Fund Plan description. All employees (other than those covered by the Police and Firefighters' Pension plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 3% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings for the first 15 years of service credit, plus 2% for each year of service after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased ever year after retirement, upon reaching age 67, by the lesser of 3% of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. Plan membership. At December 31, 2018, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 117 Inactive, non-retired members 75 Active members 66 Total 258 65 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Contributions. As set by statute, Village employees participating in IMRF are required to contribute 4.50% of their annual covered salary. The statute requires the Village to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Village’s actuarially determined contribution rate for calendar year 2018 was 13.13% of annual covered payroll for IMRF. The Village also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies. For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2018 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.25% Inflation 3.50% Salary increases 3.39% to 14.25%, including inflation Price inflation 2.50% Mo rtality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP- 2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. 66 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan investments was determined using an asset allocation study in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Projected Returns/Risks Asset Class Target Allocation One Year Arithmetic Ten Year Geometric Equities 37.00%8.50%7.15% International equities 18.00%9.20%7.25% Fixed income 28.00%3.75%3.75% Real estate 9.00%7.30%6.25% Alternatives 7.00% Private equity 12.40%8.50% Hedge funds 5.75%5.50% Commodities 4.75%3.20% Cash equivalents 1.00%2.50%2.50% Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.25%. The discount rate calculated using the December 31, 2017 measurement date was 7.50%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits to determine the total pension liability. Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents net pension liability/(asset) of the Village calculated using the discount rate of 7.25% as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.25%) or 1 percentage point higher (8.25%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $45,922,012 $41,066,285 $37,057,191 Plan fiduciary net pension 35,361,100 35,361,100 35,361,100 Net pension liability/(asset)$10,560,912 $5,705,185 $1,696,091 67 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar year ended December 31, 2018 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Balances at December 31, 2017 $38,176,461 $37,530,985 $645,476 Service cost 465,011 -465,011 Interest on total pension liability 2,799,690 -2,799,690 Differences between expected and actual experience of the total pension liability 711,157 -711,157 Change of assumptions 1,073,505 -1,073,505 Benefit payments, including refunds of employee contributions (2,159,539)(2,159,539)- Contributions - employer -647,429 (647,429) Contributions - employee -222,216 (222,216) Net investment income -(2,162,333)2,162,333 Other (net transfer)-1,282,342 (1,282,342) Balances at December 31, 2018 $41,066,285 $35,361,100 $5,705,185 Plan fiduciary net position as a percentage of the total pension liability %86.11 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2019, the Village recognized pension expense of $(84,875). The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $425,276 $176,516 Assumption changes 641,963 296,841 Net difference between projected and actual earnings on pension plan investments 2,492,176 - Contributions subsequent to the measurement date 565,145 - Total $4,124,560 $473,357 68 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2020. The remaining amounts reported as deferred outflows and inflows of resources related to pensions ($3,086,058) will be recognized in pension expense as follows: Year Ending December 31,Village 2020 $1,052,361 2021 711,383 2022 326,940 2023 995,374 Total $3,086,058 Police Pension Plan description. Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension Fund as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one half of the salary attached to the rank on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. 69 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or onehalf the annual unadjusted percentage increase in the CPI, whichever is less. Plan membership. At December 31, 2019, the Police Pension membership consisted of: Retirees and beneficiaries 41 Inactive, non-retired members 4 Active members 39 Total 84 Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2019 was 53.43% of annual covered payroll. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. 70 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2019 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.50% Projected salary increases 3.75% Cost-of-living adjustments 3.0% (1.25% for those hired on or after January 1, 2011) Mortality rates were based on the RP-2014 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.75% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $72,131,535 $63,107,741 $55,775,261 Plan fiduciary net position 41,183,345 41,183,345 41,183,345 Net pension liability $30,948,190 $21,924,396 $14,591,916 71 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2019 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2018 $60,472,616 $35,164,644 $25,307,972 Service cost 852,541 -852,541 Interest on total pension liability 4,041,408 -4,041,408 Changes in benefit terms 63,841 -63,841 Differences between expected and actual experience of the total pension liability 778,897 -778,897 Change of assumptions (196,672)-(196,672) Benefit payments, including refunds of employee contributions (2,904,890)(2,904,890)- Contributions - employer -2,057,112 (2,057,112) Contributions - employee -378,699 (378,699) Net investment income -6,529,172 (6,529,172) Administration -(41,392)41,392 Balances at December 31, 2019 $63,107,741 $41,183,345 $21,924,396 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2019, the Village recognized pension expense of $3,092,993. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $743,000 $310,400 Assumption changes 804,973 266,574 Net difference between projected and actual earnings on pension plan investments -1,272,191 Total $1,547,973 $1,849,165 72 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($(301,192)) will be recognized in pension expense as follows: Year Ending December 31,Amount 2020 $(7,368) 2021 153,249 2022 271,041 2023 (718,114) Total $(301,192) Firefighters' Pension Plan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank held in the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase in the CPI, whichever is less. 73 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Plan membership. At December 31, 2019, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries 49 Inactive, non-retired members 4 Active members 31 Total 84 Contributions. Participants contribute a fixed percentage of their base salary to the plans. At December 31, 2019, the contribution percentage was 9.455%. If a participant leaves covered employment with less than 20 years of service, accumulated participant contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2019 was 67.47% of annual covered payroll. Net pension liability/(asset). The net pension liability/(asset) was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of significant accounting policies. The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. 74 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2019 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.50% Projected salary increases 3.75% Cost-of-living adjustments 3.0% (1.25% for those hired on or after January 1, 2011) Mortality rates were based on the RP-2014 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension Plan was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.75% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $59,215,743 $52,392,619 $46,779,648 Plan fiduciary net position 30,896,236 30,896,236 30,896,236 Net pension liability $28,319,507 $21,496,383 $15,883,412 75 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2019 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2018 $51,305,132 $26,401,169 $24,903,963 Service cost 807,975 -807,975 Interest on total pension liability 3,420,108 -3,420,108 Changes in benefit terms 64,336 -64,336 Differences between expected and actual experience of the total pension liability (139,992)-(139,992) Change of assumptions (175,274)-(175,274) Benefit payments, including refunds of employee contributions (2,889,667)(2,889,667)- Contributions - employer -2,150,924 (2,150,924) Contributions - employee -308,176 (308,176) Net investment income -4,971,530 (4,971,530) Administration -(45,897)45,897 Balances at December 31, 2019 $52,392,618 $30,896,235 $21,496,383 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2019, the Village recognized pension expense of $2,243,611. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $-$584,223 Assumption changes 138,178 225,582 Net difference between projected and actual earnings on pension plan investments -1,437,360 Total $138,178 $2,247,165 76 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($(2,108,987)) will be recognized in pension expense as follows: Year Ending December 31,Amount 2020 $(731,050) 2021 (593,636) 2022 (143,195) 2023 (641,106) Total $(2,108,987) PENSION SEGMENT INFORMATION Fiduciary Net Position Pension Trust Police Pension Firefighters' Pension Total Assets Cash and investments $127,677 $14,900 $142,577 Investments Certificates of deposit 627,247 -627,247 Money markets 2,833,731 448,973 3,282,704 U.S. treasuries 224,982 976,211 1,201,193 U.S. agencies 4,184,069 7,302,539 11,486,608 State and local obligations 766,013 1,185,769 1,951,782 Corporate bonds 5,453,629 1,940,930 7,394,559 Mutual funds 26,888,453 18,969,935 45,858,388 Receivables Accrued interest 97,229 73,304 170,533 Prepaid items 3,144 1,478 4,622 Total Assets 41,206,174 30,914,039 72,120,213 Liabilities Accounts payable 22,829 17,804 40,633 Total Liabilities 22,829 17,804 40,633 Net Position Restricted for pension benefits $41,183,345 $30,896,235 $72,079,580 77 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Changes in Plan Net Position Pension Trust Police Pension Firefighters' Pension Total Additions Contributions Employer $2,057,112 $2,150,924 $4,208,036 Employee 378,699 308,176 686,875 Total Contributions 2,435,811 2,459,100 4,894,911 Investment income Net appreciation in fair value 5,439,790 4,162,937 9,602,727 Interest 1,167,021 866,113 2,033,134 Total Investment income 6,606,811 5,029,050 11,635,861 Less investment expense (77,639)(57,520)(135,159) Net investment income 6,529,172 4,971,530 11,500,702 Total Additions 8,964,983 7,430,630 16,395,613 Deductions Benefits and refunds 2,904,890 2,889,667 5,794,557 Administrative 41,392 45,897 87,289 Total Deductions 2,946,282 2,935,564 5,881,846 Net Decrease in Net Position 6,018,701 4,495,066 10,513,767 Net Position, Beginning of Year 35,164,644 26,401,169 61,565,813 Net Position, End of Year $41,183,345 $30,896,235 $72,079,580 B.RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The Village participates in a public entity risk pool called IRMA to provide coverage for losses from (torts; theft of, damage to, or destruction of assets; errors and omission; and workers compensation). However, other risks, such as (health care of its employees) are accounted for and financed by the Village in an internal service fund - the Self-Insurance Fund. Self Insurance For medical and dental claims, the uninsured risk of loss is $85,000 per incident and $2,197,173 in the aggregate for a policy year. The Village has purchased commercial insurance for claims in excess of those amounts. Settled claims have not exceeded the commercial coverage in any of the past three years. 78 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) Self Insurance (cont.) All funds of the Village along with retirees, the Oak Brook Park District and COBRA participate in the risk management program. Premiums paid into the Self-Insurance Fund are based upon equivalent premium estimates.$121,284 was assigned for that reserve at year end, and is included in unrestricted net position of the internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities include an amount for claims that have been incurred but not reported. The Village does not allocate overhead costs or other nonincremental costs to the claims liability. Claims Liability Prior Year Current Year Unpaid claims - Beginning of Year $200,897 $143,349 Current year claims and changes in estimates (1,940,257)(2,413,881) Claim payments 1,882,709 2,391,816 Unpaid Claims - End of Year $143,349 $121,284 Public Entity Risk Pool IRMA The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois that have formed an association under the Illinois Intergovernmental Co-operations Statute to pool their risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’ compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The Village’s payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate funds. Each member assumes the first $2,500 of each occurrence, and IRMA has a mix of self-insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors. 79 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) Public Entity Risk Pool (cont.) IRMA (cont.) Initial contributions are determined each year based on the individual member’s eligible revenue as defined in the bylaws of IRMA and experience modification factors based on past member loss experience. Members have a contractual obligation to fund any deficit of IRMA attributable to any membership year during which they were a member. Supplemental contributions may be required to fund these deficits. C.COMMITMENTS AND CONTINGENCIES Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. The Village has active construction projects as of December 31, 2019. W ork that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. D.OTHER POSTEMPLOYMENT BENEFITS Plan description.In addition to providing the pension benefits described, the Village provides postemployment health care (OPEB) benefits for retirees and disabled employees through a single- employer defined benefit plan (the Plan). The benefits, benefit levels, employee contributions and any employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The Plan does not issue a separate report. The activity of the Plan is reported in the Village's Self-Insurance Fund. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Contributions and benefits provided. The Village provides postemployment health care benefits to its retirees and certain disabled employees. To be eligible for benefits, an employee must qualify for retirement under one of the Village's retirement plans or meet COBRA requirements. For certain disabled employees who qualify for health insurance benefits under the Public Safety Em ployee Benefits Act (PSEBA), the Village is required to pay 100% of the cost of basis health insurance for the employee and their dependents for their lifetime. All health care benefits are provided through the Village's self-insured health plan. The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental, nervous, and substance abuse care; vision care; dental care; and prescriptions. Eligibility in Village sponsored health care plans is discontinued upon eligibility for federally sponsored health care benefits. 80 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) All retirees contribute 100% of the actuarially determined premium to the Plan to cover the cost of providing the benefits to the retirees via the self-insured plan (pay as you go), which results in an implicit subsidy to the Village. The Village pays 100% of the actuarially determined premium for certain disabled employees. Since the Village is self-insured, these amounts fluctuate on an annual basis. The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the Plan until retirement. Employees covered by benefit terms. At December 31, 2019, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 32 Inactive plan members entitled to but not yet receiving benefit payments 18 Active plan members 135 Total 185 Total OPEB Liability. The Village's total OPEB liability of $6,238,356 was measured as of December 31, 2019, and was determined by an actuarial valuation as of that date. Actuarial assumptions and other inputs. The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.5% Salary increases 3.25% Healthcare cost trend rates 4.5% - 8% Retirees' share of benefit-related costs 100% The discount rate was based on the yield for 20-year tax-exempt general obligation municipal bonds from the S&P Municipal Bond 20-Year High Grade Rate Index. Mortality rates were based on the SOA Pub-2010 General Headcount W eighted Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale MP-2019. The actuarial assumptions used in the December 31, 2019 valuation were based on the results of an actuarial experience study for the period January 1, 2018 - December 31, 2018. 81 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) CHANGES IN THE TOTAL OPEB LIABILITY Total OPEB Liability Balances at December 31, 2018 $5,638,174 Changes for the year: Service cost 306,833 Interest 239,677 Differences between expected and actual experience (508,380) Changes in assumptions or other inputs 791,275 Benefit payments (229,223) Net changes 600,182 Balances at December 31, 2019 $6,238,356 Changes of assumptions and other inputs reflect a change in the discount rate from 4.11 percent in 2018 to 3.26 percent in 2019. Sensitivity of the total OPEB liability to changes in the discount rate.The following presents the total OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.26 percent) or 1-percentage-point higher (4.26 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (2.26%)(3.26%)(4.26%) Total OPEB liability $6,862,426 $6,238,356 $5,686,361 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates.The following presents the total OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower ( 7.0 percent decreasing to 3.5 percent) or 1-percentage-point higher (9.0 percent decreasing to 5.5 percent) than the current healthcare cost trend rates: 1% Decrease (7.0% Decreasing to 3.5%) Healthcare Cost Trend Rates (8.0% Decreasing to 4.5%) 1% Increase (9.0% Decreasing to 5.5%) Total OPEB liability $5,475,071 $6,238,356 $7,166,527 82 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB. For the year ended December 31, 2019, the Village recognized OPEB expense of $552,330. At December 31, 2019, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $59,674 $444,832 Changes of assumptions or other inputs 692,366 236,920 Total $752,040 $681,752 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31, Amount 2020 $5,820 2021 5,820 2022 5,820 2023 5,820 2024 5,820 Thereafter 41,188 Total $70,288 E.SUBSEQUENT EVENTS In December 2019, a novel strain of coronavirus was reported in W uhan, Hubei province, China. In the first several months of 2020, the virus, SARS-CoV-2, and resulting disease, COVID-19, spread to United States, including the areas impacting the Village. The Village's evaluation of the effects of these events is ongoing; however, subsequent to December 31, 2019, the investment markets have experienced significant volatility. It is highly likely that the values of the Village's investments have changed by material amounts since year end. F.TAX ABATEMENT Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. 83 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2019 NOTE III - OTHER INFORMATION (cont.) F.TAX ABATEMENT (cont.) The Village through its Promenade Tax Incremental Financing District has entered into a tax abatement agreement with a developer in the form of a tax incremental financing incentive payment to further the growth of the Village, facilitate the redevelopment of the entire Redevelopment Project Areas, stimulate redevelopm ent of other parcels in the Butterfield/22nd Street corridor, increase the assessed valuation of the real estate situated within the Village, increase the sales tax revenues realized by the Village, foster increased economic activity within the Village, and other be in the best interest of the Village by furthering the health, safety, and welfare of its residents and taxpayers. The abatement is authorized through the Redevelopment Project Area Plan Agreement. The developers pay property taxes as they become due, and after meeting the criteria established in the development agreements, are entitled to future incentive payments that directly correlate to the taxes paid. Agreement Description Calculation Method Developer Commitment 2019 Payments Promenade Redevelopment Project 100% incremental property taxes, 20% incremental sales taxes Construction of an upscale retail and commercial shopping center $460,980 G.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 87, Leases Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period Statement No. 91, Conduit Debt Obligations Statement No. 92, Omnibus 2020 Statement No. 93, Replacement of Interbank Offered Rates Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements The statements listed above through Statement No. 93 had their required effective dates postponed by one year with the issuance of Statement No. 95, Postponement of Effective Dates of Certain Authoritative Guidance, with the exception of Statement No. 87 which was postponed by one and a half years. W hen they become effective, application of these standards may restate portions of these financial statements. 84 R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N G E N E R A L F U N D General Fund –to account for resources traditionally associated with governments which are not accounted for in another fund. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual REVENUES Intergovernmental $13,566,250 $13,566,250 $14,017,644 $451,394 $13,900,471 Utility taxes 5,857,500 5,857,500 6,286,242 428,742 6,137,283 Licenses and permits 2,335,050 2,335,050 3,640,730 1,305,680 3,185,402 Charges for services 1,521,400 1,521,400 1,436,294 (85,106)1,155,142 Fines, forfeitures and penalties 158,000 158,000 201,054 43,054 191,825 Investment income 330,000 330,000 613,024 283,024 329,065 Miscellaneous revenues 412,300 412,300 511,772 99,472 599,072 Total Revenues 24,180,500 24,180,500 26,706,760 2,526,260 25,498,260 EXPENDITURES CURRENT General government 4,424,525 4,381,925 4,178,784 203,141 6,548,865 Public safety 17,099,745 17,308,695 17,225,752 82,943 16,610,925 Public works 886,420 916,420 898,813 17,607 761,682 Culture and recreation 928,675 928,675 906,687 21,988 878,135 Debt Service Total Expenditures 23,339,365 23,535,715 23,210,036 325,679 24,799,607 Excess (deficiency) of revenues over (under) expenditures 841,135 644,785 3,496,724 2,851,939 698,653 OTHER FINANCING SOURCES (USES) Transfers in 508,235 508,235 508,235 -- Transfers out (1,216,725)(1,216,725)(704,518)512,207 - Total Other Financing Sources (Uses)(708,490)(708,490)(196,283)512,207 - Net Change in Fund Balance $132,645 $(63,705)3,300,441 $3,364,146 698,653 FUND BALANCE - Beginning of Year 21,753,327 21,054,674 FUND BALANCE - END OF YEAR $25,053,768 $21,753,327 See independent auditors' report and accompanying notes to required supplementary information. 85 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - HOTEL/MOTEL TAX FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual REVENUES Hotel and motel taxes $1,268,000 $1,268,000 $1,292,756 $24,756 $1,340,495 Investment income 30,000 30,000 139,722 109,722 76,703 Miscellaneous revenues --193,931 193,931 5,200 Total Revenues 1,298,000 1,298,000 1,626,409 328,409 1,422,398 EXPENDITURES CURRENT General government 103,115 103,115 103,115 -99,550 Culture and recreation 4,758,405 4,758,405 679,358 4,079,047 691,261 Total Expenditures 4,861,520 4,861,520 782,473 4,079,047 790,811 Net Change in Fund Balance $(3,563,520)$(3,563,520)843,936 $4,407,456 631,587 FUND BALANCE - Beginning of Year 4,590,891 3,959,304 FUND BALANCE - END OF YEAR $5,434,827 $4,590,891 See independent auditors' report and accompanying notes to required supplementary information. 86 See independent auditors' report and accompanying notes to required supplementary information. 87 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Five Most Recent Fiscal Years 2015 2016 2017 2018 2019 Total pension liability Service cost 613,861$ 581,062$ 558,199$ 524,438$ 465,011$ Interest 2,465,082 2,615,047 2,706,946 2,837,540 2,799,690 Differences between expected and actual experience (770,401) (398,570) 243,794 (677,198) 711,157 Changes of assumptions 1,163,670 89,849 (135,521) (1,138,825) 1,073,505 Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) (1,882,278) (2,159,539) Net change in total pension liability 2,119,046 1,421,115 1,735,214 (336,323) 2,889,824 Total pension liability - beginning 33,237,409 35,356,455 36,777,570 38,512,784 38,176,461 Total pension liability - ending (a)35,356,455$ 36,777,570$ 38,512,784$ 38,176,461$ 41,066,285$ Plan fiduciary net position Employer contributions 749,983$ 715,089$ 723,634$ 645,761$ 647,429$ Employee contributions 238,409 238,021 243,012 348,030 222,216 Net investment income 1,874,762 159,375 2,199,050 5,792,968 (2,162,333) Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) (1,882,278) (2,159,539) Other (net transfer)(294,611) 63,416 247,674 (989,852) 1,282,342 Net change in plan fiduciary net position 1,215,377 (290,372) 1,775,166 3,914,629 (2,169,885) Plan fiduciary net position - beginning 30,916,185 32,131,562 31,841,190 33,616,356 37,530,985 Plan fiduciary net position - ending (b)32,131,562$ 31,841,190$ 33,616,356$ 37,530,985$ 35,361,100$ Employer's net pension liability - ending (a) - (b)3,224,893$ 4,936,380$ 4,896,428$ 645,476$ 5,705,185$ Plan fiduciary net position as a percentage of the total pension liability 90.88%86.58%87.29%98.31%86.11% Covered payroll 5,168,916$ 5,230,241$ 5,400,260$ 4,875,980$ 4,930,905$ Employer's net pension liability as a percentage of covered-employee payroll 62.39%94.38%90.67%13.24%115.70% Notes to Schedule: The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Five Most Recent Fiscal Years 2015 2016 2017 2018 2019 Actuarially determined contribution 715,497$ 723,635$ 611,935$ 647,428$ 544,333$ Contributions in relation to the actuarially determined contribution (715,089) (723,634) (645,761) (647,429) (562,006) Contribution deficiency (excess) 408$ 1$ (33,826)$ (1)$ (17,673)$ Covered payroll 5,230,241$ 5,400,260$ 4,875,980$ 4,930,905$ 5,347,086$ Contributions as a percentage of covered payroll 13.67% 13.40% 13.24% 13.13% 10.51% Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation 2.75% Salary increases Investment rate of return 7.50% Retirement Age Mortality Other information: There were no benefit changes during the year. 3.75% to 14.50% including inflation Experience-based table of rates that are specific to the type of eligibility condition The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. Entry age normal Level percentage of payroll, closed 25 years 5-Year Smoothed Market RP-2014 CHBCA See independent auditors' report and accompanying notes to required supplementary information. 88 See independent auditors' report and accompanying notes to required supplementary information. 89 VILLAGE OF OAK BROOK POLICE PENSION FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Last Six Fiscal Years 2014 2015 2016 2017 2018 2019 Total pension liability Service cost 826,067$ 816,276$ 800,389$ 833,296$ 890,871$ 852,541$ Interest 3,141,175 3,338,238 3,563,145 3,650,633 3,902,722 4,041,408 Changes of benefit terms - - - - - 63,841 Differences between expected and actual experience 1,279,682 (48,037) (856,825) (347,589) 199,802 778,897 Changes of assumptions - 1,597,133 96,439 1,964,218 (182,060) (196,672) Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) (2,315,047) (2,531,903) (2,904,890) Net change in total pension liability 2,958,231 3,356,924 1,238,309 3,785,511 2,279,432 2,635,125 Total pension liability - beginning 46,854,212 49,812,440 53,169,364 54,407,673 58,193,184 60,472,616 Total pension liability - ending (a)49,812,443$ 53,169,364$ 54,407,673$ 58,193,184$ 60,472,616$ 63,107,741$ Plan fiduciary net position Employer contributions 1,259,824$ 1,336,683$ 1,527,927$ 1,748,025$ 1,946,714$ 2,057,112$ Employee contributions 358,339 358,499 383,238 386,727 410,316 378,699 Net investment income 1,115,158 (429,967) 2,176,018 4,461,837 (2,385,632) 6,529,172 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) (2,315,047) (2,531,903) (2,904,890) Administration (47,609) (38,647) (39,522) (35,776) (54,667) (41,392) Net change in plan fiduciary net position 397,019 (1,120,118) 1,682,822 4,245,766 (2,615,172) 6,018,701 Plan fiduciary net position - beginning 32,574,327 32,971,346 31,851,228 33,534,050 37,779,816 35,164,644 Plan fiduciary net position - ending (b)32,971,346$ 31,851,228$ 33,534,050$ 37,779,816$ 35,164,644$ 41,183,345$ Village's net pension liability - ending (a) - (b)16,841,097$ 21,318,136$ 20,873,623$ 20,413,368$ 25,307,972$ 21,924,396$ Plan fiduciary net position as a percentage of the total pension liability 66.19%59.91%61.63%64.92%58.15%65.26% Covered payroll 3,631,184$ 3,735,548$ 3,829,224$ 3,892,216$ 3,849,863$ 3,932,044$ Village's net pension liability as a percentage of covered payroll 463.79%570.68%545.11%524.47%657.37%557.58% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to reflect the most recent study conducted by the Illinois Department of Insurance. VILLAGE OF OAK BROOK POLICE PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Last Ten Fiscal Years 2010 2011 2012 2013 Actuarially determined contribution 944,808$ 885,339$ 969,024$ 1,205,519$ Contributions in relation to the actuarially determined contribution 944,808 674,170 977,367 1,171,537 Contribution deficiency (excess)-$ 211,169$ (8,343)$ 33,982$ Covered-employee payroll 3,433,002$ 3,288,064$ 3,310,998$ 3,646,309$ Contributions as a percentage of covered payroll 27.52% 20.50% 29.52% 32.13% Notes to Schedule: Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Mortality rates were based on the RP-2014 BCA Mortality Table Entry-age normal Level percentage of payroll, closed 22 years Market value 3.75%, average, including inflation 50-70 2.50% 6.75%, net of pension plan investment expense, including inflation The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. See independent auditors' report and accompanying notes to required supplementary information. 90 See independent auditors' report and accompanying notes to required supplementary information. 91 2014 2015 2016 2017 2018 2019 1,485,673$ 1,550,233$ 1,708,330$ 1,748,025$ 1,946,714$ 2,057,112$ 1,259,824 1,336,683 1,527,927 1,748,025 1,946,714 2,057,112 225,849$ 213,550$ 180,403$ -$ -$ -$ 3,598,016$ 3,631,184$ 3,735,548$ 3,829,224$ 3,892,216$ 3,849,863$ 35.01%36.81%40.90%45.65%50.02%53.43% See independent auditors' report and accompanying notes to required supplementary information. 92 VILLAGE OF OAK BROOK POLICE PENSION FUND SCHEDULE OF INVESTMENT RETURNS Last Six Fiscal Years 2014 2015 2016 2017 2018 2019 Annual money-weighted rate of return, net of investment expense 5.54%-1.32%6.89%13.35%-6.34%18.71% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. See independent auditors' report and accompanying notes to required supplementary information. 93 VILLAGE OF OAK BROOK FIREFIGHTERS' PENSION FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Last Six Fiscal Years 2014 2015 2016 2017 2018 2019 Total pension liability Service cost 746,748$ 746,748$ 756,771$ 782,892$ 786,115$ 807,975$ Interest 2,926,848 3,040,301 3,229,650 3,287,875 3,347,278 3,420,108 Changes of benefit terms - - - - - 64,336 Differences between expected and actual experience 507,637 163,758 (569,891) (768,292) (96,554) (139,992) Changes of assumptions - 1,474,675 90,432 300,225 (156,879) (175,274) Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) (2,695,712) (2,756,038) (2,889,667) Net change in total pension liability 1,795,742 2,810,076 861,692 906,988 1,123,922 1,087,486 Total pension liability - beginning 43,806,712 45,602,454 48,412,530 49,274,222 50,181,210 51,305,132 Total pension liability - ending (a)45,602,454$ 48,412,530$ 49,274,222$ 50,181,210$ 51,305,132$ 52,392,618$ Plan fiduciary net position Employer contributions 1,570,742$ 1,414,530$ 1,801,476$ 2,080,231$ 2,064,689$ 2,150,924$ Employee contributions 267,458 269,349 273,775 295,477 300,087 308,176 Net investment income 1,178,816 (256,566) 1,794,320 3,459,107 (1,255,489) 4,971,530 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) (2,695,712) (2,756,038) (2,889,667) Administration (75,386) (46,351) (40,567) (41,034) (45,569) (45,897) Net change in plan fiduciary net position 556,139 (1,234,444) 1,183,734 3,098,069 (1,692,320) 4,495,066 Plan fiduciary net position - beginning 24,489,991 25,046,130 23,811,686 24,995,420 28,093,489 26,401,169 Plan fiduciary net position - ending (b)25,046,130$ 23,811,686$ 24,995,420$ 28,093,489$ 26,401,169$ 30,896,235$ Village's net pension liability - ending (a) - (b)20,556,324$ 24,600,844$ 24,278,802$ 22,087,721$ 24,903,963$ 21,496,383$ Plan fiduciary net position as a percentage of the total pension liability 54.92%49.18%50.73%55.98%51.46%58.97% Covered payroll 2,818,219$ 2,812,001$ 2,918,844$ 3,085,809$ 3,187,983$ 3,179,407$ Village's net pension liability as a percentage of covered payroll 729.41%874.85%831.80%715.78%781.18%676.11% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to reflect the most recent study conducted by the Illinois Department of Insurance. VILLAGE OF OAK BROOK FIREFIGHTERS' PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Last Ten Fiscal Years 2010 2011 2012 2013 Actuarially determined contribution 933,925$ 1,082,677$ 1,065,173$ 1,144,966$ Contributions in relation to the actuarially determined contribution 933,925 995,110 1,001,528 1,057,081 Contribution deficiency (excess)-$ 87,567$ 63,645$ 87,885$ Covered payroll 2,573,691$ 2,668,624$ 2,687,097$ 2,762,080$ Contributions as a percentage of covered payroll 36.29% 37.29% 37.27% 38.27% Notes to Schedule: Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Entry-age normal The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. 50-70 Mortality rates were based on the RP- 2014 BCA Mortality Table Level percentage of payroll, closed 22 years Market Value 2.50% 3.75%, average, including inflation 6.75%, net of pension plan investment expense, including inflation See independent auditors' report and accompanying notes to required supplementary information. 94 See independent auditors' report and accompanying notes to required supplementary information. 95 2014 2015 2016 2017 2018 2019 1,698,405$ 1,826,637$ 2,015,441$ 2,080,231$ 2,064,689$ 2,150,924$ 1,570,742 1,414,530 1,801,476 2,080,231 2,064,689 2,150,924 127,663$ 412,107$ 213,965$ -$ -$ -$ 2,674,017$ 2,818,219$ 2,812,001$ 2,918,844$ 3,085,809$ 3,187,983$ 58.74%50.19%64.06%71.27%66.91%67.47% See independent auditors' report and accompanying notes to required supplementary information. 96 VILLAGE OF OAK BROOK FIREFIGHTERS' PENSION FUND SCHEDULE OF INVESTMENT RETURNS Last Six Fiscal Years 2014 2015 2016 2017 2018 2019 Annual money-weighted rate of return, net of investment expense 5.10%-1.05%7.62%13.95%-4.51%19.01% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. See Auditors' Report and Notes to Required Supplementary Information. 97 VILLAGE OF OAK BROOK OTHER POSTEMPLOYMENT BENEFIT PLAN SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS Two Most Recent Fiscal Years 2018 2019 Total OPEB liability Service cost 325,218$ 306,833$ Interest 205,569 239,677 Other Changes 79,566 (508,380) Changes of assumptions (315,894) 791,275 Benefit payments, including refunds of member contributions (209,110) (229,223) Net change in total OPEB liability 85,349 600,182 Total OPEB liability - beginning 5,552,825 5,638,174 Total OPEB liability - ending 5,638,174$ 6,238,356$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00%0.00% Covered payroll 11,490,969$ 11,909,451$ Village's total OPEB liability as a percentage of covered payroll 49.07%52.38% Notes to Schedule: The Village implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2018 is not available. VILLAGE OF OAK BROOK NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2019 BUDGETARY INFORMATION Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for the General, Special Revenue, and Capital Projects Funds on the modified accrual basis. Enterprise and Internal Service Funds are on the accrual basis and a current financial resources measurement focus except the Village does not budget depreciation or the impact from the net pension liability but does budget capital outlay and pension payments. The annual budget is legally enacted and provides for a legal level of control at the program level. All annual appropriations lapse at fiscal year end. The Village does not adopt a budget for the Foreign Fire Insurance Fund or the Pension Trust Funds. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: 1. All departments of the Village submit budget requests to the Budget Officer so that a budget may be prepared. 2. The Village Manager submits to the Village Board of Trustees a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 3. A public hearing is conducted by the Village to obtain resident comments. 4. Subsequently, the budget is adopted by the Village Board. 5. Annual budgets are adopted for all funds on a basis consistent with generally accepted accounting principles. 6. Formal budgetary integration is employed as a management control device during the year for all funds of the Village. 7. Appropriations lapse at year end. 8. The Village Manager and Budget Officer are authorized to transfer budgeted amounts between line items within any program; however, any revisions that alter the total expenditures of any program or fund must be approved by the Village Board. The level of legal control is the individual program budget in total. 9. Budgeted amounts are as originally adopted with the exceptions of approved transfers which were not material in relation to the budgets taken as a whole. See independent auditors' report. 98 S U P P L E M E N T A R Y I N F O R M A T I O N VILLAGE OF OAK BROOK SCHEDULE OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 with Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual INTERGOVERNMENTAL Municipal sales tax $ 12,325,000 $ 12,325,000 $ 12,516,616 $ 191,616 $ 12,586,320 Illinois state income and use tax 949,750 949,750 1,105,045 155,295 986,491 Corporate personal property replacement taxes 248,000 248,000 332,383 84,383 263,964 York Township road and bridge tax 30,000 30,000 36,018 6,018 37,879 Grants 13,500 13,500 27,582 14,082 25,817 Total Intergovernme ntal 13,566,250 13,566,250 14,017,644 451,394 13,900,471 Utility taxes 5,857,500 5,857,500 6,286,242 428,742 6,137,283 Licenses and permits 2,335,050 2,335,050 3,640,730 1,305,680 3,185,402 Charges for services 1,521,400 1,521,400 1,436,294 (85,106)1,155,142 Fines, forfeitures and penalties 158,000 158,000 201,054 43,054 191,825 Investment income 330,000 330,000 613,024 283,024 329,065 MISCELLANEOUS Franchise fees 213,000 213,000 211,737 (1,263)219,460 Other 199,300 199,300 300,035 100,735 379,612 Total Miscellaneous 412,300 412,300 511,772 99,472 599,072 TOTAL REVENUES $ 24,180,500 $ 24,180,500 $ 26,706,760 $ 2,526,260 $ 25,498,260 99 100 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual GENERAL GOVERNMENT Legislative and general management Board of Trustees Personnel 85,595$ 88,595$ 82,883$ 5,712$ 81,626$ Materials and supplies 4,500 1,500 525 975 306 Operation and contractual 65,000 50,005 48,417 1,588 53,008 Total board of trustees 155,095 140,100 131,825 8,275 134,940 Village clerk Personnel 149,850 149,850 138,735 11,115 129,337 Materials and supplies 3,135 3,135 1,786 1,349 2,702 Operation and contractual 11,000 11,000 4,672 6,328 15,326 Total Village clerk 163,985 163,985 145,193 18,792 147,365 Legal Materials and supplies 100 100 - 100 - Operation and contractual 289,000 283,080 271,060 12,020 270,701 Total legal 289,100 283,180 271,060 12,120 270,701 General management Personnel 310,815 322,495 320,406 2,089 312,591 Materials and supplies 55,075 46,080 44,930 1,150 48,273 Operation and contractual 16,155 13,470 11,737 1,733 11,949 Total general management 382,045 382,045 377,073 4,972 372,813 Human resources Personnel 179,325 153,935 128,099 25,836 157,081 Materials and supplies 2,550 2,550 2,501 49 763 Operation and contractual 54,500 79,890 71,317 8,573 81,662 Total human resources 236,375 236,375 201,917 34,458 239,506 Risk management Personnel 23,125 23,125 23,557 (432) 22,452 Operation and contractual 293,500 293,500 285,968 7,532 251,162 Total risk management 316,625 316,625 309,525 7,100 273,614 Emergency management Personnel 750 750 - 750 727 Materials and supplies 500 2,320 2,320 - 2,274 Operation and contractual 11,520 9,700 10,053 (353) 9,616 Total emergency management 12,770 12,770 12,373 397 12,617 Information systems Personnel 396,890 384,290 353,025 31,265 329,991 Materials and supplies 29,600 34,505 34,389 116 22,663 Operation and contractual 491,610 475,345 417,887 57,458 479,666 Capital 171,400 182,760 182,760 - 225,667 Total information systems 1,089,500 1,076,900 988,061 88,839 1,057,987 2019 Budgeted Amounts 101 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual 2019 Budgeted Amounts GENERAL GOVERNMENT (continued) Legislative and general management (continued) Customer service Personnel 55,325$ 59,955$ 59,659$ 296$ 49,024$ Operation and contractual - 1,290 1,287 3 3,087 Total customer service 55,325 61,245 60,946 299 52,111 Total legislative and general management 2,700,820 2,673,225 2,497,973 175,252 2,561,654 Community development management Administration Personnel 382,520 385,080 381,234 3,846 376,466 Materials and supplies 1,175 1,175 780 395 790 Operation and contractual 17,850 6,745 6,535 210 2,188 Total administration 401,545 393,000 388,549 4,451 379,444 Code enforcement Personnel 532,810 548,345 547,721 624 531,118 Materials and supplies 4,575 4,575 4,366 209 3,902 Operation and contractual 43,125 51,130 51,122 8 38,739 Total code enforcement 580,510 604,050 603,209 841 573,759 Total community development 982,055 997,050 991,758 5,292 953,203 Financial services Financial services management Personnel 142,795 142,795 141,962 833 140,640 Materials and supplies - - 445 (445) 4,161 Operation and contractual 62,510 62,510 57,793 4,717 58,608 Total financial services management 205,305 205,305 200,200 5,105 203,409 Accounting and reporting Personnel 355,255 355,255 343,711 11,544 317,940 Materials and supplies 3,145 3,145 3,130 15 3,380 Operation and contractual 60,980 30,980 29,357 1,623 28,417 Total accounting and reporting 419,380 389,380 376,198 13,182 349,737 PSEBA benefits Personnel 39,345 39,345 39,116 229 39,413 Total PSEBA benefits 39,345 39,345 39,116 229 39,413 102 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual 2019 Budgeted Amounts GENERAL GOVERNMENT (continued) Financial services (continued) Purchasing Personnel 99,455$ 99,455$ 98,733$ 722$ 97,772$ Materials and supplies 19,375 19,375 20,070 (695) 16,504 Total purchasing 118,830 118,830 118,803 27 114,276 Total financial services 782,860 752,860 734,317 18,543 706,835 Municipal building improvement Operation and contractual - 5,055 5,054 1 2,228 Capital 459,900 454,845 450,792 4,053 2,822,690 Total municipal building improvement 459,900 459,900 455,846 4,054 2,824,918 Expenditure reimbursements paid to other funds 131,100 131,100 131,100 - 131,315 Subtotal general government 5,056,735 5,014,135 4,810,994 203,141 7,177,925 Less reimbursements from other funds (632,210) (632,210) (632,210) - (629,060) Total general government 4,424,525 4,381,925 4,178,784 203,141 6,548,865 PUBLIC SAFETY Police department Police services management Personnel 609,620 609,620 601,288 8,332 585,596 Materials and supplies 3,000 3,000 4,454 (1,454) 3,382 Operation and contractual 41,445 41,445 40,895 550 45,045 Total police services management 654,065 654,065 646,637 7,428 634,023 Police field services Personnel 5,083,250 5,092,075 5,091,413 662 5,171,431 Materials and supplies 16,505 16,505 14,873 1,632 14,823 Operation and contractual 205,245 205,245 201,935 3,310 289,723 Capital 92,000 279,525 263,887 15,638 7,965 Total police field services 5,397,000 5,593,350 5,572,108 21,242 5,483,942 Police auxiliary services Personnel 89,295 89,295 73,429 15,866 79,079 Operation and contractual 1,875 1,875 1,632 243 1,632 Total police auxiliary services 91,170 91,170 75,061 16,109 80,711 Support services general Personnel 771,055 739,850 737,376 2,474 680,677 Materials and supplies 66,600 55,415 55,843 (428) 75,485 Operation and contractual 2,750 2,750 2,356 394 2,551 Total support services general 840,405 798,015 795,575 2,440 758,713 Support services detectives Personnel 1,124,745 1,167,135 1,164,127 3,008 1,018,758 Materials and supplies 2,400 2,400 2,143 257 2,494 Operation and contractual 23,665 23,665 20,590 3,075 28,186 Total support services detectives 1,150,810 1,193,200 1,186,860 6,340 1,049,438 103 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual 2019 Budgeted Amounts PUBLIC SAFETY (continued) Police department (continued) Police support services records Personnel 239,560$ 239,560$ 239,363$ 197$ 231,693$ Materials and supplies 20,435 20,435 17,871 2,564 18,015 Operation and contractual 498,515 498,515 488,257 10,258 466,910 Total support services records 758,510 758,510 745,491 13,019 716,618 Total police department 8,891,960 9,088,310 9,021,732 66,578 8,723,445 Fire department Fire, rescue, and EMS operations Personnel 5,973,425 6,116,625 6,115,859 766 6,012,476 Materials and supplies 57,105 57,105 55,646 1,459 50,014 Operation and contractual 260,755 256,785 256,630 155 273,006 Capital 79,475 74,350 74,347 3 86,480 Total fire, rescue, and EMS operations 6,370,760 6,504,865 6,502,482 2,383 6,421,976 Fire services management Personnel 354,425 359,170 357,508 1,662 354,678 Materials and supplies 5,645 5,345 1,994 3,351 4,364 Operation and contractual 199,935 195,490 192,017 3,473 187,118 Other 10,000 10,000 8,803 1,197 5,866 Total fire services management 570,005 570,005 560,322 9,683 552,026 Special teams operations Materials and supplies 24,150 21,150 21,147 3 9,701 Operation and contractual 8,385 7,195 7,195 - 8,361 Total special teams operations 32,535 28,345 28,342 3 18,062 Rescue and fire training Personnel 45,490 39,745 39,841 (96) 33,323 Materials and supplies 925 925 50 875 60 Operation and contractual 2,000 - - - - Total rescue and fire training 48,415 40,670 39,891 779 33,383 Emergency medical services Personnel 37,545 22,825 21,537 1,288 23,829 Materials and supplies 24,050 20,560 19,070 1,490 16,926 Operation and contractual 863,575 839,555 839,767 (212) 631,881 Capital 59,700 59,700 60,596 (896) 60,699 Total emergency medical services 984,870 942,640 940,970 1,670 733,335 Fire prevention and public safety Personnel 184,435 123,640 123,395 245 120,917 Materials and supplies 9,965 8,530 7,786 744 6,688 Operation and contractual 6,800 1,690 832 858 1,093 Total fire prevention and public safety 201,200 133,860 132,013 1,847 128,698 Total fire department 8,207,785 8,220,385 8,204,020 16,365 7,887,480 Total public safety 17,099,745 17,308,695 17,225,752 82,943 16,610,925 104 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual 2019 Budgeted Amounts PUBLIC WORKS Mosquito control Operation and contractual 82,905$ 67,175$ 67,174$ 1$ 64,045$ Total mosquito control 82,905 67,175 67,174 1 64,045 Buildings and grounds Personnel 211,365 233,260 233,707 (447) 141,462 Materials and supplies 50,435 30,995 30,395 600 44,544 Operation and contractual 294,385 347,530 344,921 2,609 283,454 Capital - - 1,200 (1,200) - Total buildings and grounds 556,185 611,785 610,223 1,562 469,460 Forestry Personnel 15,530 26,040 21,361 4,679 10,815 Materials and supplies 2,835 2,835 406 2,429 1,240 Operation and contractual 228,965 208,585 199,649 8,936 216,122 Total forestry 247,330 237,460 221,416 16,044 228,177 Total public works 886,420 916,420 898,813 17,607 761,682 CULTURE AND RECREATION Library general operations Personnel 310,305 313,680 312,953 727 279,158 Materials and supplies 15,650 15,650 13,149 2,501 15,313 Operation and contractual 77,740 74,365 69,737 4,628 72,556 Total library general operations 403,695 403,695 395,839 7,856 367,027 Library technical services Personnel 100,990 100,990 97,818 3,172 98,634 Materials and supplies 3,300 3,300 3,299 1 3,300 Operation and contractual 1,035 1,035 676 359 3,633 105,325 105,325 101,793 3,532 105,567 Total library technical services Library reference and adult services Personnel 162,670 162,670 154,360 8,310 154,642 Materials and supplies 102,200 102,200 101,830 370 101,436 Operation and contractual 3,500 3,500 3,469 31 2,994 Total library reference and adult services 268,370 268,370 259,659 8,711 259,072 Library youth services Personnel 116,185 116,185 114,427 1,758 111,644 Materials and supplies 30,850 30,850 30,719 131 30,577 Operation and contractual 4,250 4,250 4,250 - 4,248 Total library youth services 151,285 151,285 149,396 1,889 146,469 Total culture and recreation 928,675 928,675 906,687 21,988 878,135 Total expenditures 23,339,365$ 23,535,715$ 23,210,036$ 325,679$ 24,799,607$ N O N M A J O R G O V E R N M E N T A L F U N D S SPECIAL REVENUE FUNDS Motor Fuel Tax Fund –to account for state gasoline tax allocations restricted for local roadway program expenditures. Foreign Fire Insurance Tax Fund –to account for foreign fire insurance tax revenue restricted for the purchase of items for the benefit of the fire department. VILLAGE OF OAK BROOK COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS As of December 31, 2019 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds ASSETS Cash and investments $1,045,152 $183,154 $1,228,306 Receivables Allotments 34,604 -34,604 Accrued interest 474 -474 TOTAL ASSETS $1,080,230 $183,154 $1,263,384 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Fund Balances Restricted for highways and streets 1,080,230 -1,080,230 Restricted for fire department -183,154 183,154 Total Fund Balances 1,080,230 183,154 1,263,384 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $1,080,230 $183,154 $1,263,384 105 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2019 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds REVENUES Intergovernmental $258,609 $65,254 $323,863 Investment income 21,376 1,580 22,956 Fines, forfeitures and penalties 2,322 -2,322 Miscellaneous revenues -81 81 Total Revenues 282,307 66,915 349,222 EXPENDITURES Current Public safety -143,929 143,929 Total Expenditures -143,929 143,929 Net Change in Fund Balances 282,307 (77,014)205,293 FUND BALANCES - Beginning of Year 797,923 260,168 1,058,091 FUND BALANCES - END OF YEAR $1,080,230 $183,154 $1,263,384 106 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX FUND - NONMAJOR SPECIAL REVENUE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual REVENUES Intergovernmental $197,750 $197,750 $258,609 $60,859 $201,771 Fines, forfeitures and penalties --2,322 2,322 496 Investment income 6,000 6,000 21,376 15,376 14,392 Total Revenues 203,750 203,750 282,307 78,557 216,659 EXPENDITURES Total Expenditures ----- Excess (deficiency) of revenues over (under) expenditures 203,750 203,750 282,307 78,557 216,659 OTHER FINANCING SOURCES (USES) Transfers out (900,000)(900,000)-900,000 (7,790) Total Other Financing Sources (Uses)(900,000)(900,000)-900,000 (7,790) Net Change in Fund Balance $(696,250)$(696,250)282,307 $978,557 208,869 FUND BALANCE - Beginning of Year 797,923 589,054 FUND BALANCE - END OF YEAR $1,080,230 $797,923 107 M A J O R G O V E R N M E N T A L F U N D S Infrastructure Fund –to account for revenues restricted for and expenditures relative to the construction and maintenance of roadways, drainage and safety pathway systems. Promenade TIF Fund –to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual REVENUES Non-home rule sales tax $5,548,000 $5,548,000 $5,642,898 $94,898 $5,691,536 Investment income 80,000 80,000 248,179 168,179 173,890 Miscellaneous revenues 5,000 5,000 14,022 9,022 2,729 Charges for services --1,556 1,556 - Total Revenues 5,633,000 5,633,000 5,906,655 273,655 5,868,155 EXPENDITURES GENERAL GOVERNMENT Geographic information systems Personnel 20,325 20,325 18,566 1,759 18,824 Materials and supplies 1,700 1,700 288 1,412 118 Operation and contractual 157,460 157,460 149,101 8,359 147,288 Total geographic information systems 179,485 179,485 167,955 11,530 166,230 Total General Government 179,485 179,485 167,955 11,530 166,230 PUBLIC WORKS Management Personnel 420,085 432,010 420,551 11,459 398,055 Materials and supplies 5,020 5,020 2,649 2,371 5,393 Operation and contractual 139,120 127,195 96,009 31,186 97,168 Total management 564,225 564,225 519,209 45,016 500,616 Streets - general salaries Personnel 701,025 701,025 661,067 39,958 630,952 Materials and supplies 3,560 3,560 2,352 1,208 4,117 Operation and contractual 3,195 3,195 2,817 378 1,826 Total streets - general salaries 707,780 707,780 666,236 41,544 636,895 Streets and traffic maintenance Materials and supplies 88,765 88,765 31,040 57,725 60,092 Operation and contractual 461,645 461,645 387,597 74,048 413,903 Total streets and traffic maintenance 550,410 550,410 418,637 131,773 473,995 108 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual Snow removal Personnel $86,325 $88,160 $67,247 $20,913 $49,424 Materials and supplies 114,325 114,325 94,956 19,369 60,122 Operation and contractual 55,650 53,815 45,650 8,165 39,535 Total snow removal 256,300 256,300 207,853 48,447 149,081 Drainage maintenance Materials and supplies 21,000 21,000 5,553 15,447 12,257 Operation and contractual 82,045 82,045 78,617 3,428 64,186 Capital 4,070,000 4,070,000 2,105,049 1,964,951 164,504 Total drainage maintenance 4,173,045 4,173,045 2,189,219 1,983,826 240,947 Safe pathway maintenance Materials and supplies 10,975 10,975 475 10,500 7,705 Operation and contractual 38,595 36,200 18,295 17,905 17,270 Capital -2,395 2,393 2 - Total safe pathway maintenance 49,570 49,570 21,163 28,407 24,975 Engineering and capital projects engineering Personnel 94,615 96,530 95,359 1,171 88,702 Materials and supplies 1,500 1,500 -1,500 55 Operation and contractual 325,725 337,180 337,180 -343,933 Total engineering and capital projects engineering 421,840 435,210 432,539 2,671 432,690 Roadway improvements Operation and contractual 400,000 537,275 537,274 1 235,546 Intergovernmental agreements 5,938,575 5,787,930 2,546,469 3,241,461 3,325,168 Total roadway improvements 6,338,575 6,325,205 3,083,743 3,241,462 3,560,714 109 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual Reimbursements from other funds Reimbursements from other funds $(333,445)$(333,445)$(333,445)$-$(181,130) Expenditure reimbursement paid to other funds 161,535 161,535 161,535 -164,865 Total reimbursements from other funds (171,910)(171,910)(171,910)-(16,265) Total Public Works 12,889,835 12,889,835 7,366,689 5,523,146 6,003,648 Total Expenditures 13,069,320 13,069,320 7,534,644 5,534,676 6,169,878 Excess (deficiency) of revenues over (under) expenditures (7,436,320)(7,436,320)(1,627,989)5,808,331 (301,723) OTHER FINANCING SOURCES (USES) Transfers in 1,116,125 1,116,125 216,125 (900,000)7,790 Total Other Financing Sources (Uses)1,116,125 1,116,125 216,125 (900,000)7,790 Net Change in Fund Balance $(6,320,195)$(6,320,195)(1,411,864)$4,908,331 (293,933) FUND BALANCE - Beginning of Year 9,449,977 9,743,910 FUND BALANCE - END OF YEAR $8,038,113 $9,449,977 110 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - PROMENADE TIF FUND - MAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual REVENUES TAXES Municipal sales tax $100,000 $100,000 $96,992 $(3,008)$99,477 Property taxes 360,000 360,000 412,066 52,066 373,267 Investment income 900 900 2,379 1,479 1,975 Total Revenues 460,900 460,900 511,437 50,537 474,719 EXPENDITURES Current General government 4,210 4,210 3,748 462 3,578 Debt service Principal 217,000 217,000 217,000 -227,000 Interest and fiscal charges 243,980 243,980 243,980 -262,820 Total Expenditures 465,190 465,190 464,728 462 493,398 Net Change in Fund Balance $(4,290)$(4,290)46,709 $50,999 (18,679) FUND BALANCE - Beginning of Year 257,485 276,164 FUND BALANCE - END OF YEAR $304,194 $257,485 111 P R O P R I E T A R Y F U N D S M A J O R E N T E R P R I S E F U N D S Waterworks System Fund –to account for revenues and expenses relative to the operation of the water utility. Sports Core Fund –to account for revenues and expenses relative to the operation of the Oak Brook Sports Core. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATERW ORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual OPERATING REVENUES Charges for services Water sales $10,223,250 $10,223,250 $9,595,416 $(627,834)$9,517,554 Unmetered sales 30,000 30,000 48,218 18,218 37,062 Water tap on charges 50,000 50,000 248,160 198,160 117,134 Meter fees and special services 55,000 55,000 60,762 5,762 44,380 Miscellaneous 81,500 81,500 88,252 6,752 102,128 Total Operating Revenues 10,439,750 10,439,750 10,040,808 (398,942)9,818,258 OPERATING EXPENSES Operation of facilities 13,523,110 13,523,110 6,534,487 (6,988,623)8,275,397 Depreciation and amortization --512,104 512,104 517,190 Total Operating Expenses 13,523,110 13,523,110 7,046,591 (6,476,519)8,792,587 Operating income (3,083,360)(3,083,360)2,994,217 6,077,577 1,025,671 NON-OPERATING REVENUES (EXPENSES) Investment income 55,000 55,000 196,566 141,566 97,388 Gain (loss) on disposal of capital assets --(3,950)(3,950)- Total Non-Operating Revenues (Expenses)55,000 55,000 192,616 137,616 97,388 112 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATERW ORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual CONTRIBUTION AND TRANSFERS Transfers in $221,085 $221,085 $221,085 $-$- Net Contribution And Transfers 221,085 221,085 221,085 -- Change in net position $(2,807,275)$(2,807,275)3,407,918 $6,215,193 1,123,059 NET POSITION - Beginning of Year, as previously reported 24,426,397 23,466,260 Restatement of beginning of year net position -(162,922) NET POSITION - Beginning of Year (as restated)24,426,397 23,303,338 NET POSITION - END OF YEAR $27,834,315 $24,426,397 113 114 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - WATERWORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operation of facilities Public works - water operations Personnel 828,710$ 838,070$ 796,540$ 41,530$ 724,292$ Materials and supplies 76,210 190,020 175,368 14,652 1,909,232 Operation and contractual 5,822,285 5,862,775 5,038,960 823,815 5,288,705 Reimbursements to other funds 551,830 551,830 551,830 - 405,170 Total public works - water operations 7,279,035 7,442,695 6,562,698 879,997 8,327,399 Capital improvements Capital outlay 6,244,075 6,080,415 4,103,869 1,976,546 114,314 Total capital improvements 6,244,075 6,080,415 4,103,869 1,976,546 114,314 Total operating expenses excluding depreciation and pension expense - Budgetary basis 13,523,110$ 13,523,110$ 10,666,567 2,856,543$ 8,441,713 Adjustments to GAAP Basis Capital expenditures (4,103,869) (114,314) Pension expense - IMRF (77,236) (49,485) OPEB expense 49,025 (2,517) Depreciation and amortization 512,104 517,190 Total adjustments to GAAP basis (3,619,976) 350,874 Total operating expenses 7,046,591$ 8,792,587$ 2019 Budgeted Amounts 115 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual Revenues Charges for services Golf 1,994,050$ 1,994,050$ 1,984,023$ (10,027)$ 1,864,913$ Swimming and tennis 301,515 301,515 302,137 622 283,259 Special events 185,000 185,000 114,740 (70,260) 185,918 Rentals and commissions 510,000 510,000 593,152 83,152 531,266 Food and beverage 428,000 428,000 455,585 27,585 386,514 Total operating revenues 3,418,565 3,418,565 3,449,637 31,072 3,251,870 Operating expenses including depreciation Golf club 1,921,370 2,180,715 2,068,515 112,200 1,939,158 Swimming and tennis 1,447,600 1,167,770 553,023 614,747 571,811 Special events 200,000 182,425 136,900 45,525 200,237 Rentals and commissions 883,630 902,335 533,073 369,262 440,324 Food and beverage 357,690 377,045 403,752 (26,707) 334,889 Total operating expenses 4,810,290 4,810,290 3,695,263 1,115,027 3,486,419 Operating income (loss)(1,391,725) (1,391,725) (245,626) (1,083,955) (234,549) Non-operating revenues (expenses) Investment income - - 63 (63) - Gain (loss) on disposal of capital assets - - (6,410) 6,410 (59,701) Total non-operating revenues (expenses)- - (6,347) 6,347 (59,701) Net income (loss) before transfers (1,391,725) (1,391,725) (251,973) (1,077,608) (294,250) Transfers Transfers in 1,391,725 1,391,725 917,487 (474,238) 234,088 Total Other Financing Sources (Uses)1,391,725 1,391,725 917,487 (474,238) 234,088 Change in net position -$ -$ 665,514 (1,551,846)$ (60,162) NET POSITION - Beginning of Year (as previously reported)11,588,630 11,809,998 Restatement of beginning of year net position - (161,206) NET POSITION - Beginning of Year (as restated)11,588,630 11,648,792 NET POSITION - END OF YEAR 12,254,144$ 11,588,630$ VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 31, 2019 2019 Budgeted Amount 116 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual Charges for Services Golf Fees 1,579,550$ 1,579,550$ 1,550,259$ (29,291)$ 1,462,441$ Memberships 209,000 209,000 197,675 (11,325) 205,300 Merchandise sales 205,500 205,500 217,475 11,975 196,026 Miscellaneous - - 18,614 18,614 1,146 Total golf 1,994,050 1,994,050 1,984,023 (10,027) 1,864,913 Swimming and tennis Fees 53,450 53,450 65,878 12,428 51,029 Memberships 244,815 244,815 222,006 (22,809) 229,374 Merchandise sales - - 2,937 2,937 333 Miscellaneous 3,250 3,250 11,316 8,066 2,523 Total swimming and tennis 301,515 301,515 302,137 622 283,259 Special events Independence Day/Taste of Oak Brook 185,000 185,000 - (185,000) 185,918 Miscellaneous - - 114,740 114,740 - Total special events 185,000 185,000 114,740 (70,260) 185,918 Rentals and commissions Open field rental 200,000 200,000 169,708 (30,292) 201,085 Butler range rental 75,000 75,000 75,000 - 70,000 Other rental income 235,000 235,000 348,444 113,444 260,181 Total rentals and commissions 510,000 510,000 593,152 83,152 531,266 Food and beverage Food sales 175,500 175,500 183,550 8,050 157,330 Beverage sales 252,500 252,500 272,035 19,535 229,184 Total food and beverage 428,000 428,000 455,585 27,585 386,514 Total Operating Revenues 3,418,565$ 3,418,565$ 3,449,637$ 31,072$ 3,251,870$ VILLAGE OF OAK BROOK SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 31, 2019 2019 Budgeted Amounts 117 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operations - golf club Golf club general operations Personnel 499,030$ 490,590$ 487,939$ 2,651$ 472,214$ Materials and supplies 172,450 273,955 276,596 (2,641) 177,131 Operation and contractual 183,310 257,470 255,791 1,679 185,099 Capital 170,000 148,550 120,499 28,051 259,142 Total golf club general operations 1,024,790 1,170,565 1,140,825 29,740 1,093,586 Golf club range operations Personnel 65,745 65,745 59,752 5,993 55,007 Materials and supplies 15,500 20,165 19,688 477 19,579 Operation and contractual 14,500 14,500 13,831 669 14,058 Capital 5,000 335 - 335 - Total golf club range operations 100,745 100,745 93,271 7,474 88,644 Golf cart operations Personnel 48,445 56,195 56,189 6 53,384 Materials and supplies 1,400 1,400 1,348 52 343 Operation and contractual 53,575 53,575 53,145 430 51,778 Capital - - - - 53,972 Total golf cart operations 103,420 111,170 110,682 488 159,477 Golf course maintenance Personnel 491,170 540,785 544,853 (4,068) 552,494 Materials and supplies 156,745 205,315 206,317 (1,002) 214,592 Operation and contractual 37,650 37,650 31,498 6,152 98,960 Capital 90,000 97,635 97,634 1 81,021 Total golf course maintenance 775,565 881,385 880,302 1,083 947,067 Less reimbursement from other funds (83,150) (83,150) (83,150) - (178,150) Total operations - golf club 1,921,370 2,180,715 2,141,930 38,785 2,110,624 Operations - swimming and tennis General operations Personnel 114,750 96,645 89,124 7,521 101,375 Materials and supplies 11,150 31,625 24,896 6,729 6,533 Operation and contractual 75,130 106,200 93,331 12,869 71,948 Capital 95,000 61,560 - 61,560 38,845 Subtotal general operations 296,030 296,030 207,351 88,679 218,701 Less reimbursement from other funds (32,000) (32,000) (32,000) - (32,000) Less overhead allocation (169,280) (207,210) (207,204) (6) (187,855) Total general operations 94,750 56,820 (31,853) 88,673 (1,154) 2019 Budgeted Amounts 118 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual 2019 Budgeted Amounts Operating expenses excluding depreciation and pension expense (continued) Swimming operations Personnel 23,795$ 23,795$ 19,585$ 4,210$ 20,179$ Materials and supplies 11,000 23,735 23,730 5 12,729 Operation and contractual 277,670 288,510 287,486 1,024 290,343 Capital 870,500 587,580 407,599 179,981 45,980 Overhead allocation 60,945 74,595 74,593 2 67,627 Total swimming operations 1,243,910 998,215 812,993 185,222 436,858 Tennis operations - outdoor Personnel 32,295 16,675 - 16,675 32,857 Materials and supplies 2,500 2,500 711 1,789 2,075 Operation and contractual 57,220 72,840 71,850 990 71,600 Overhead allocation 16,925 20,720 20,720 - 18,785 Total tennis operations - outdoor 108,940 112,735 93,281 19,454 125,317 Total operations - swimming and tennis 1,447,600 1,167,770 874,421 293,349 561,021 Special events Operation and contractual 200,000 182,425 136,900 45,525 200,237 Total special events 200,000 182,425 136,900 45,525 200,237 Rentals and commissions Personnel 145,570 145,570 138,867 6,703 129,328 Materials and supplies 22,250 34,335 33,052 1,283 15,678 Operation and contractual 205,770 298,155 262,886 35,269 195,405 Capital 425,400 320,670 262,120 58,550 213,207 Overhead allocation 84,640 103,605 103,602 3 93,927 Total rentals and commissions 883,630 902,335 800,527 101,808 647,545 Food and beverage Poolside grill Personnel 26,580 29,900 29,990 (90) 24,004 Materials and supplies 19,050 30,160 30,848 (688) 16,059 Operation and contractual 2,250 2,250 25 2,225 1,272 Overhead allocation 6,770 8,290 8,288 2 7,515 Total poolside grill 54,650 70,600 69,151 1,449 48,850 Golf clubhouse Personnel 125,540 125,355 126,641 (1,286) 112,687 Materials and supplies 168,600 172,190 169,233 2,957 151,243 Operation and contractual 8,900 8,900 9,651 (751) 7,107 Total golf clubhouse 303,040 306,445 305,525 920 271,037 Total food and beverage 357,690 377,045 374,676 2,369 319,887 119 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Variance With 2018 Original Final Actual Final Budget Actual 2019 Budgeted Amounts Total operating expenses - budgetary basis 4,810,290$ 4,810,290$ 4,328,454 481,836$ 3,839,314 Adjustments to GAAP basis Capital expenditures (887,852)$ (692,167)$ Depreciation expense - golf 199,729 173,658 Depreciation expense - swimming and tennis 92,274 94,463 Depreciation expense - food and beverage 35,394 14,004 Pension expense - IMRF (92,771) 14,214 OPEB expense 20,035 42,933 Total adjustments to GAAP basis (633,191) (352,895) Total Operating Expenses 3,695,263$ 3,486,419$ N O N M A J O R E N T E R P R I S E F U N D Golf Surcharge Fund –to account for revenue collected related to the $3 surcharge on each golf round played. Funds are accumulated in this fund and used on golf course improvements. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GOLF SURCHARGE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual OPERATING REVENUES Charges for services $120,000 $120,000 $111,082 $(8,918)$106,267 Total Operating Revenues 120,000 120,000 111,082 (8,918)106,267 OPERATING EXPENSES Total Operating Expenses ----- Operating income 120,000 120,000 111,082 (8,918)106,267 NON-OPERATING REVENUES (EXPENSES) Investment income 5,000 5,000 10,842 5,842 10,620 Total Non-Operating Revenues (Expenses)5,000 5,000 10,842 5,842 10,620 TRANSFERS Transfers out (175,000)(212,970)(212,969)1 (234,088) Net Transfers (175,000)(212,970)(212,969)1 (234,088) Change in net position $(50,000)$(87,970)(91,045)$3,077 (117,201) NET POSITION - Beginning of Year 438,669 555,870 NET POSITION - END OF YEAR $347,624 $438,669 120 I N T E R N A L S E R V I C E F U N D S Self-Insurance Fund –to account for all costs associated with self-insurance risks for employee health and dental insurance. Garage Fund –to account for all costs associated with the operation and maintenance of the Village’s vehicle fleet equipment. Capital Replacement Fund –to account for revenues and expenses relative to the replacement of major capital equipment, primarily vehicles. VILLAGE OF OAK BROOK COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS As of December 31, 2019 Self-Insurance Garage Capital Replacement Totals ASSETS Current Assets Cash and investments $308,820 $275,988 $807,822 $1,392,630 Receivables Accrued interest --2,192 2,192 Other 18,925 1,157 -20,082 Inventories -55,206 -55,206 Prepaid items 72,291 2,250 -74,541 Total Current Assets 400,036 334,601 810,014 1,544,651 Noncurrent Assets Capital assets Capital assets, net of accumulated depreciation -59,192 4,024,511 4,083,703 Total Noncurrent Assets -59,192 4,024,511 4,083,703 Total Assets 400,036 393,793 4,834,525 5,628,354 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - IMRF -103,364 -103,364 Deferred outflows related to OPEB -5,748 -5,748 Total Deferred Outflows of Resources -109,112 -109,112 LIABILITIES Current Liabilities Accounts payable 274,728 16,176 -290,904 Accrued payroll -8,466 -8,466 Compensated absences payable -9,286 -9,286 Unearned revenues 35,251 --35,251 Claims payable 121,284 --121,284 Total Current Liabilities 431,263 33,928 -465,191 Noncurrent Liabilities Net pension liability - IMRF -142,975 -142,975 Total other post employment benefits liability -47,683 -47,683 Lease obligations --450,871 450,871 Total Noncurrent Liabilities -190,658 450,871 641,529 Total Liabilities 431,263 224,586 450,871 1,106,720 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions - IMRF -11,863 -11,863 Deferred inflows related to OPEB -5,211 -5,211 Total Deferred Inflows of Resources -17,074 -17,074 NET POSITION Investment in capital assets -59,192 4,024,511 4,083,703 Unrestricted (31,227)202,053 359,143 529,969 TOTAL NET POSITION $(31,227)$261,245 $4,383,654 $4,613,672 121 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Self-Insurance Garage Capital Replacement Totals OPERATING REVENUES Charges for services $ 3,383,304 $ 606,600 $ 216,470 $ 4,206,374 Total Operating Revenues 3,383,304 606,600 216,470 4,206,374 OPERATING EXPENSES Claims and insurance 3,608,813 - - 3,608,813 Operation of facilities - 698,195 - 698,195 Miscellaneous - - 34,528 34,528 Depreciation and amortization -16,836 625,391 642,227 Total Operating Expenses 3,608,813 715,031 659,919 4,983,763 Operating Income (Loss)(225,509)(108,431)(443,449)(777,389) NONOPERATING REVENUES (EXPENSES) Investment income 14,679 7,667 26,460 48,806 Investment expense - -(9,143)(9,143) Gain (loss) on disposal of capital assets --156,631 156,631 Total Nonoperating Revenues (Expenses)14,679 7,667 173,948 196,294 Income (Loss) Before Transfers (210,830)(100,764)(269,501)(581,095) TRANSFERS Transfers in - 54,555 - 54,555 Transfers out --(1,000,000)(1,000,000) Total Transfers -54,555 (1,000,000)(945,445) Change in net position (210,830)(46,209)(1,269,501)(1,526,540) NET POSITION - Beginning of Year 179,603 307,454 5,653,155 6,140,212 NET POSITION (DEFICIT) - END OF YEAR $ (31,227)$ 261,245 $ 4,383,654 $ 4,613,672 122 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CASH FLOW S INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Self-Insurance Garage Capital Replacement Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $1,136,072 $-$-$1,136,072 Receipts from internal service transactions 2,307,825 606,239 216,470 3,130,534 Payments to suppliers (3,618,324)(582,225)(35,361)(4,235,910) Payments to employees -(141,382)-(141,382) Net Cash Flows From Operating Activities (174,427)(117,368)181,109 (110,686) CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured --238,121 238,121 Purchase of investments --(32,720)(32,720) Interest received 14,679 7,667 11,465 33,811 Net Cash Flows From Investing Activities 14,679 7,667 216,866 239,212 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Net transfers in (out)-54,555 -54,555 Net Cash Flows From Noncapital Financing Activities -54,555 -54,555 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets --(156,631)(156,631) Acquisition and construction of capital assets --(442,209)(442,209) Net Cash Flows From Capital and Related Financing Activities --(598,840)(598,840) Net Change in Cash and Cash Equivalents (159,748)(55,146)(200,865)(415,759) CASH AND CASH EQUIVALENTS - Beginning of Year 468,568 331,134 627,299 1,427,001 CASH AND CASH EQUIVALENTS - END OF YEAR $308,820 $275,988 $426,434 $1,011,242 123 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CASH FLOW S INTERNAL SERVICE FUNDS For the Year Ended December 31, 2019 Self-Insurance Garage Capital Replacement Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$(225,509)$(108,431)$(443,449)$(777,389) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation -16,836 625,391 642,227 Changes in assets and liabilities Accounts receivable 58,652 (361)-58,291 Prepaid items (25,964)(2,250)-(28,214) Inventories -(3,370)-(3,370) Deferred outflows - pensions -(85,436)-(85,436) Deferred outflows - OPEB -(5,201)-(5,201) Accounts payable 38,518 (6,821)(833)30,864 Claims payable (22,065)--(22,065) Accrued salaries -1,853 -1,853 Compensated absences payable -467 -467 Total OPEB liability -3,364 -3,364 Net pension liability -126,773 -126,773 Deferred inflows - pensions -(57,829)-(57,829) Deferred inflows - OPEB -3,038 -3,038 Unearned revenues 1,941 --1,941 NET CASH FLOWS FROM OPERATING ACTIVITIES $(174,427)$(117,368)$181,109 $(110,686) RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and investments - statement of net position $308,820 $275,988 $426,434 $1,011,242 Investments --381,388 381,388 Total Cash and investments $308,820 $275,988 $807,822 $1,392,630 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None 124 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SELF-INSURANCE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 2019 Budgeted Amounts Original Final Actual Variance with Final Budget 2018 Actual OPERATING REVENUES Charges for services $3,412,250 $3,412,250 $3,383,304 $(28,946)$3,197,936 Total Operating Revenues 3,412,250 3,412,250 3,383,304 (28,946)3,197,936 OPERATING EXPENSES Claims and insurance Insurance and administration 1,247,500 1,222,405 1,222,379 26 1,149,233 Health claims 2,153,000 2,386,435 2,386,434 1 1,825,161 Total Operating Expenses 3,400,500 3,608,840 3,608,813 (27)2,974,394 Operating Income (Loss)11,750 (196,590)(225,509)(28,919)223,542 NON-OPERATING REVENUES (EXPENSES) Investment income 2,500 2,500 14,679 12,179 5,935 Total Non-Operating Revenues (Expenses)2,500 2,500 14,679 12,179 5,935 Change in net position $14,250 $(194,090)(210,830)$(16,740)229,477 NET POSITION - Beginning of Year 179,603 (49,874) NET POSITION - END OF YEAR $(31,227)$179,603 125 126 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - GARAGE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Budgeted Amounts Variance With 2018 Original Final Actual Final Budget Actual Operating Revenues Charges for services 606,060$ 606,060$ 606,600$ 540$ 611,798$ Total Revenues 606,060 606,060 606,600 540 611,798 Operating Expenses Excluding Depreciation Garage operations Personnel 231,450 223,150 204,987 18,163 201,549 Materials and supplies 170,790 173,375 169,852 3,523 180,848 Operation and contractual 312,830 318,545 298,157 20,388 273,892 Expenditure reimbursement paid to other funds 40,490 40,490 40,490 - 41,290 Total operating expenses excluding depreciation 755,560 755,560 713,486 42,074 697,579 Operating Income (Loss)(149,500) (149,500) (106,886) 42,614 (85,781) Non-Operating Revenues (Expenses)Investment income 4,000 4,000 7,667 979 7,133 Transfers in 54,555 54,555 54,555 979 - Total non-operating revenues (expenses)58,555 58,555 62,222 1,958 7,133 Change in Net Position - Budgetary Basis (90,945)$ (90,945)$ (44,664) 44,572$ (78,648) Adjustments to GAAP Basis Pension expense - IMRF 16,492 (20,880) OPEB expense (1,201) 742 Depreciation and amortization (16,836) (16,919) Total adjustments to GAAP basis (1,545) (37,057) Change in Net Position - GAAP basis (46,209) (115,705) NET POSITION - Beginning of Year (as previously reported)307,454 457,087 Restatement of beginning of year net position - (33,928) NET POSITION - Beginning of Year (as restated)307,454 423,159 NET POSITION - END OF YEAR 261,245$ 307,454$ 2019 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL CAPITAL REPLACEMENT FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2019 With Comparative Actual Amounts for the Year Ended December 31, 2018 Budgeted Amounts Variance With 2018 Original Final Actual Final Budget Actual Operating Revenues Charges for services 216,470$ 216,470$ 216,470$ -$ 340,940$ Total Revenues 216,470 216,470 216,470 - 340,940 Operating Expenses Excluding Depreciation Materials and supplies - 11,760 11,757 3 18,972 Operational and contractual 115,440 94,535 13,186 81,349 - Capital expenditures 129,310 129,310 - 129,310 302,088 Expenditure reimbursement paid to other funds 9,585 9,585 9,585 - - Total operating expenses excluding depreciation 254,335 245,190 34,528 210,662 321,060 Operating Income (Loss)(37,865) (28,720) 181,942 210,662 19,880 Non-Operating Revenues (Expenses) Gain (loss) on disposal of capital assets 10,000 10,000 156,631 (146,631) 89,225 Investment income 7,500 7,500 26,460 (18,960) 29,768 Investment expense - (9,145) (9,143) (2) - Transfers out (1,000,000) (1,000,000) (1,000,000) - - Total non-operating revenues (expenses) (982,500) (991,645) (826,052) (165,593) 118,993 Change in Net Position - Budgetary Basis (1,020,365)$ (1,020,365)$ (644,110) 45,069$ 138,873 Adjustments to GAAP Basis Capital expenditures - (302,088) Depreciation and amortization 625,391 616,755 Total adjustments to GAAP basis 625,391 314,667 Change in Net Position - GAAP basis (1,269,501) (175,794) NET POSITION - Beginning of Year 5,653,155 5,828,949 NET POSITION - END OF YEAR 4,383,654$ 5,653,155$ 2019 127 F I D U C I A R Y F U N D S P E N S I O N T R U S T F U N D S Police Pension Fund –to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn police personnel at rates fixed by state statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. Firefighter’s Pension Fund –to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn fire personnel at rates fixed by state statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. VILLAGE OF OAK BROOK COMBINING STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS As of December 31, 2019 Police Pension Firefighters' Pension Totals ASSETS Cash $127,677 $14,900 $142,577 Investments Certificates of deposit 627,247 -627,247 Money markets 2,833,731 448,973 3,282,704 U.S. treasuries 224,982 976,211 1,201,193 U.S. agencies 4,184,069 7,302,539 11,486,608 State and local obligations 766,013 1,185,769 1,951,782 Corporate bonds 5,453,629 1,940,930 7,394,559 Mutual funds 26,888,453 18,969,935 45,858,388 Accrued interest 97,229 73,304 170,533 Prepaid items 3,144 1,478 4,622 Total Assets 41,206,174 30,914,039 72,120,213 LIABILITIES Accounts payable 22,829 17,804 40,633 Total Liabilities 22,829 17,804 40,633 NET POSITION Restricted for pension benefits $41,183,345 $30,896,235 $72,079,580 128 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2019 Police Pension Firefighters' Pension Total AD DITIONS Contributions Employer $2,057,112 $2,150,924 $4,208,036 Employee 378,699 308,176 686,875 Total Contributions 2,435,811 2,459,100 4,894,911 Investment income Net appreciation in fair value 5,439,790 4,162,937 9,602,727 Interest 1,167,021 866,113 2,033,134 Total Investment Income 6,606,811 5,029,050 11,635,861 Less Investment expense (77,639)(57,520)(135,159) Net Investment Income 6,529,172 4,971,530 11,500,702 Total Additions 8,964,983 7,430,630 16,395,613 DEDUCTIONS Benefits and refunds 2,904,890 2,889,667 5,794,557 Administrative 41,392 45,897 87,289 Total Deductions 2,946,282 2,935,564 5,881,846 Net Decrease in Net Position 6,018,701 4,495,066 10,513,767 NET POSITION - Beginning of Year 35,164,644 26,401,169 61,565,813 NET POSITION, END OF YEAR $41,183,345 $30,896,235 $72,079,580 129 S T A T I S T I C A L S E C T I O N Statistical Section This part of the Village's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time.130 - 139 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate it's property and sales taxes.140 - 146 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future.147 - 151 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place and to help make comparisons over time and with other governments.152 - 165 Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's financial information relates to the services the Village provides and the activities it performs.166 - 169 Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 130 2010 2011 2012 2013 Governmental Activities Net Investment in Capital Assets 55.3$ 56.2$ 57.6$ 59.3$ Restricted 3.5 9.4 9.4 9.8 Unrestricted 17.4 13.7 14.0 13.3 76.2$ 79.3$ 81.0$ 82.4$ Business-type Activities Net Investment in Capital Assets 26.5$ 28.5$ 30.0$ 29.6$ Unrestricted 3.6 1.8 1.2 4.6 Total Business-type Activities 30.1$ 30.3$ 31.2$ 34.2$ Primary Government Net Investment in Capital Assets 81.8$ 84.7$ 87.6$ 88.9$ Restricted 3.5 9.4 9.4 9.8 Unrestricted 21.0 15.5 15.2 17.9 Total Primary Government 106.3$ 109.6$ 112.2$ 116.6$ Data Source Audited Financial Statements Data in millions Note: The Village implemented GASB Statement No. 68 in 2015. Prior years have not been restated. VILLAGE OF OAK BROOK Net Position by Component Last Ten Fiscal Years 131 2014 2015 2016 2017 2018 2019 60.7$ 60.7$ 60.5$ 61.8$ 65.4$ 67.5$ 11.5 11.3 12.3 14.8 15.3 15.1 12.1 (27.2) (26.1) (27.1) (32.3) (30.8) 84.3$ 44.8$ 46.7$ 49.5$ 48.4$ 51.8$ 30.6$ 31.3$ 30.6$ 29.9$ 29.8$ 34.0$ 3.7 2.2 3.9 6.6 7.3 6.8 34.3$ 33.5$ 34.5$ 36.5$ 37.1$ 40.8$ 91.3$ 92.0$ 91.1$ 91.7$ 95.2$ 101.5$ 11.5 11.3 12.3 14.8 15.3 15.1 15.8 (25.0) (22.2) (20.5) (25.0) (24.0) 118.6$ 78.3$ 81.2$ 86.0$ 85.5$ 92.6$ 132 2010 2011 2012 2013 Expenses Governmental Activities General Government 3.9$ 4.2$ 3.7$ 4.3$ Public Safety 13.2 12.3 13.4 13.7 Public Works 4.4 4.9 6.1 4.8 Culture and Recreation 1.7 1.7 1.8 1.8 Interest on Long-Term Debt 0.4 0.4 0.4 0.4 Total Governmental Activities Expenses 23.6 23.5 25.4 25.0 Business-type Activities Water 4.5 4.9 5.6 6.3 Sports Core 3.1 3.1 3.3 3.4 Total Business-type Activities Expenses 7.6 8.0 8.9 9.7 Total Primary Government Expenses 31.2$ 31.5$ 34.3$ 34.7$ Program Revenues Governmental Activities Charges for Services General Government 1.4$ 1.1$ 1.6$ 2.1$ Public Safety 1.1 1.5 1.1 1.1 Operating Grants and Contributions 0.3 0.3 0.3 0.4 Capital Grants 0.7 0.7 - 0.5 Total Governmental Activities Program Revenues 3.5 3.6 3.0 4.1 Business-type Activities Charges for Services Water 5.1 5.3 6.7 6.9 Sports Core 2.5 2.9 3.2 3.2 Golf Surcharge - - - - Total Business-type Activities Program Revenues 7.6 8.2 9.9 10.1 Total Primary Government Program Revenues 11.1$ 11.8$ 12.9$ 14.2$ Net (Expense) Revenue Governmental Activities (20.1)$ (19.9)$ (22.4)$ (20.9)$ Business-type Activities - 0.2 1.0 0.4 Total Primary Government Net (Expense) Revenue (20.1)$ (19.7)$ (21.4)$ (20.5)$ Last Ten Fiscal Years Change in Net Position VILLAGE OF OAK BROOK 133 2014 2015 2016 2017 2018 2019 4.5$ 5.3$ 4.7$ 5.7$ 5.5$ 6.1$ 14.7 24.6 17.2 17.4 18.9 18.9 4.9 7.7 6.4 3.8 5.0 5.3 2.0 1.5 1.5 1.7 1.7 1.8 0.3 0.3 0.3 0.3 0.3 0.2 26.4 39.4 30.1 28.9 31.4 32.3 7.0 8.0 7.9 7.9 8.8 7.1 3.6 3.7 3.4 3.5 3.5 3.8 10.6 11.7 11.3 11.4 12.3 10.9 37.0$ 51.1$ 41.4$ 40.3$ 43.7$ 43.2$ 1.9$ 1.8$ 2.1$ 2.6$ 4.5$ 5.3$ 1.2 1.2 1.3 1.3 1.5 1.8 0.4 0.2 0.2 0.2 0.2 0.2 0.3 - - - - - 3.8 3.2 3.6 4.1 6.2 7.3 7.0 7.7 8.8 9.9 9.8 10.0 3.1 3.2 3.4 3.4 3.2 3.4 - - - 0.1 0.1 0.1 10.1 10.9 12.2 13.4 13.1 13.5 13.9$ 14.1$ 15.8$ 17.5$ 19.3$ 20.8$ (22.6)$ (36.2)$ (26.5)$ (24.8)$ (25.2)$ (25.0)$ (0.5) (0.8) 0.9 2.0 0.8 2.6 (23.1)$ (37.0)$ (25.6)$ (22.8)$ (24.4)$ (22.4)$ 134 2010 2011 2012 2013 General Revenues and Other Changes in Net Position Governmental Activities Taxes Sales and Local Use Taxes 16.1$ 16.0$ 16.7$ 17.3$ Utility 4.7 4.7 4.9 5.0 Other 2.3 2.2 2.5 2.4 Investment Earnings 0.1 - - 0.1 Miscellaneous - - - - Transfers - - - (0.2) Total Governmental Activities 23.2 22.9 24.1 24.6 Business-type Activities Investment Earnings - - - - Miscellaneous (0.1) - - - Transfers - - 0.2 Total Business-type Activities (0.1) - - 0.2 Total Primary Government 23.1$ 22.9$ 24.1$ 24.8$ Change in Net Position Governmental Activities 3.1$ 3.0$ 1.7$ 3.7$ Business-type Activities (0.1) 0.2 1.0 0.6 Total Primary Government Change in Net Position 3.0$ 3.2$ 2.7$ 4.3$ Data Source Audited Financial Statements Data in millions VILLAGE OF OAK BROOK Change in Net Position Last Ten Fiscal Years 135 2014 2015 2016 2017 2018 2019 17.7$ 18.1$ 19.3$ 18.3$ 18.6$ 21.5$ 5.2 5.7 6.0 6.0 6.1 6.3 2.5 2.8 2.7 3.0 3.2 0.1 (0.2) 0.2 0.3 0.3 0.6 1.1 - 0.2 - - - 0.1 (0.5) (0.5) - - - (0.7) 24.7 26.5 28.3 27.6 28.5 28.4 - - - - 0.1 0.2 - - - - - 0.1 0.5 0.5 - - - 0.7 0.5 0.5 - - 0.1 1.0 25.2$ 27.0$ 28.3$ 27.6$ 28.6$ 29.4$ 2.1$ (9.7)$ 1.8$ 2.8$ 3.3$ 3.4$ - (0.3) 0.9 2.0 0.9 3.6 2.1$ (10.0)$ 2.7$ 4.8$ 4.2$ 7.0$ 136 2010 2011 2012 2013 2014 2015 General Fund Nonspendable 1,917,000$ 2,087,000$ 2,545,898$ 168,016$ 109,092$ 53,406$ Unrestricted Committed - 364,483 224,878 224,878 - - Assigned - - - 102,525 205,050 - Unassigned 11,708,050 13,532,992 14,772,181 15,902,982 15,799,127 17,206,014 Total General Fund 13,625,050$ 15,984,475$ 17,542,957$ 16,398,401$ 16,113,269$ 17,259,420$ Infrastructure Fund Nonspendable 337,699$ -$ -$ -$ -$ -$ Restricted 5,004,945 5,864,870 5,398,644 5,152,351 6,706,262 5,791,896 Total Infrastructure Fund 5,342,644$ 5,864,870$ 5,398,644$ 5,152,351$ 6,706,262$ 5,791,896$ All Other Governmental Funds Restricted 3,672,971$ 3,451,553$ 3,924,483$ 4,560,128$ 4,826,298$ 5,504,093$ Nonspendable - - - - 775 775 Total All Other Governmental Funds 3,672,971$ 3,451,553$ 3,924,483$ 4,560,128$ 4,827,073$ 5,504,868$ Data Source Audited Financial Statements Last Ten Fiscal Years Fund Balances of Governmental Funds VILLAGE OF OAK BROOK 137 2016 2017 2018 2019 58,444$ 56,649$ 56,010$ 90,072$ - - - - - - - - 20,014,100 20,998,025 21,697,317 24,963,696 20,072,544$ 21,054,674$ 21,753,327$ 25,053,768$ -$ -$ -$ 7,415$ 6,766,002 9,743,910 9,449,977 8,030,698 6,766,002$ 9,743,910$ 9,449,977$ 8,038,113$ 5,673,352$ 5,068,576$ 5,905,692$ 7,002,405$ - 775 775 - 5,673,352$ 5,069,351$ 5,906,467$ 7,002,405$ 138 VILLAGE OF OAK BROOK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years 2010 2011 2012 2013 2014 2015 Revenues Sales Tax Revenue 11,121,649$ 11,070,404$ 11,326,929$ 11,385,834$ 12,149,324$ 12,346,857$ Non-home Rule Sales Tax 4,833,425 4,833,972 5,230,137 5,171,232 5,384,857 5,637,241 Other Intergovernmental 2,545,066 2,411,395 1,841,378 2,530,416 2,274,102 1,925,962 Utility Taxes 4,669,414 4,657,683 4,900,869 5,047,306 5,203,835 5,673,868 Hotel/Motel Taxes 881,887 853,638 940,008 964,684 1,049,631 1,194,811 Licenses and Permits 843,139 948,872 1,201,998 1,686,269 1,448,471 1,385,341 Charges for Services 943,638 1,089,783 970,778 1,021,858 1,044,934 1,058,929 Fines and Penalties 229,246 248,120 231,865 184,959 189,060 177,588 Investment Income 110,837 31,018 47,363 86,287 (155,427) 138,593 Miscellaneous 532,891 323,742 355,548 364,452 424,552 625,504 Total Revenues 26,711,192 26,468,627 27,046,873 28,443,297 29,013,339 30,164,694 Expenditures General Government 3,522,790 3,319,839 3,600,061 4,289,515 5,072,205 4,331,061 Public Safety 12,536,938 11,755,031 12,986,730 13,440,798 14,324,720 14,597,010 Public Works 4,036,771 4,698,190 4,706,731 4,457,705 4,937,146 7,520,877 Culture and Recreation 1,536,853 1,569,377 1,638,863 1,684,276 1,898,393 1,635,690 Capital Outlay 382,039 281,457 607,097 - - - Debt Service 1,769,263 1,827,087 1,842,163 1,876,754 425,000 384,913 Interest and issuance costs 462,997 386,259 375,042 362,129 346,094 326,465 Total Expenditures 24,247,651 23,837,240 25,756,687 26,111,177 27,003,558 28,796,016 Excess of Revenues over (under) Expenditures 2,463,541 2,631,387 1,290,186 2,332,120 2,009,781 1,368,678 Other Financing Sources (Uses) Transfers In - - 275,000 - 156,840 - Transfers Out - - - (725,324) (630,897) (459,098) Sale of Capital Assets - 28,846 - - - - Total Other Financing Sources (Uses)- 28,846 275,000 (725,324) (474,057) (459,098) Net Change in Fund Balances 2,463,541$ 2,660,233$ 1,565,186$ 1,606,796$ 1,535,724$ 909,580$ Debt Service as a percentage of Noncapital Expenditures 9.35%9.40%8.82%8.57%2.86%2.47% Data Source Audited Financial Statements 2016 2017 2018 2019 13,072,837$ 12,481,210$ 12,685,797$ 12,613,608$ 5,991,262 5,581,924 5,691,536 5,642,898 1,939,598 1,929,507 1,943,897 2,236,957 5,967,345 6,033,358 6,137,283 6,286,242 1,270,131 1,265,583 1,340,495 1,292,756 1,882,598 2,205,571 3,185,402 3,640,730 1,075,234 1,106,204 1,155,142 1,437,850 159,799 144,833 192,321 203,376 203,467 309,786 596,092 1,026,260 421,967 457,543 609,096 719,806 31,984,238 31,515,519 33,537,061 35,100,483 4,343,678 5,019,819 6,818,223 4,453,602 15,190,063 16,155,248 16,652,456 17,369,681 6,055,657 3,772,803 6,765,330 8,265,502 1,709,465 2,467,432 1,569,396 1,586,045 - - - - 420,000 457,000 227,000 217,000 309,761 287,180 262,820 243,980 28,028,624 28,159,482 32,295,225 32,135,810 3,955,614 3,356,037 1,241,836 2,964,673 516,221 548,454 7,790 724,360 (516,221) (548,454) (7,790) (704,518) - - - - - - - 19,842 3,955,614$ 3,356,037$ 1,241,836$ 2,984,515$ 2.69% 2.84% 1.64% 1.64% 139 140 Less:Total Taxable Levy Residential Commercial Industrial Railroad Tax-Exempt Assessed Year Property Property Property Property Property Value 2009 1,176,749 562,531 - - - 1,739,280 2010 1,088,414 511,191 - - - 1,599,605 2011 1,003,641 490,189 - - - 1,493,830 2012 910,922 448,374 - 13 - 1,359,309 2013 856,140 419,122 - 13 - 1,275,275 2014 849,811 414,919 - 13 - 1,264,743 2015 895,787 440,733 - 13 - 1,336,533 2016 967,753 461,677 - 13 - 1,429,443 2017 1,025,265 486,517 - 13 - 1,511,795 2018 1,053,490 508,384 - 13 - 1,561,887 Data Source Office of the County Clerk Note : Property in the Village is reassessed each year. Property is assessed at 33% of actual value. Other Information from Statement: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of property tax levies and collections. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. VILLAGE OF OAK BROOK Assessed Value and Actual Value of Taxable Property Last Ten Levy Years (data in thousands) 141 Total Estimated Estimated Direct Actual Actual Tax Taxable Taxable Rate Value Value - 5,217,840 33.333% - 4,798,815 33.333% - 4,481,490 33.333% - 4,077,927 33.333% - 3,825,825 33.333% - 3,794,229 33.333% - 4,009,599 33.333% - 4,288,329 33.333% - 4,535,385 33.333% - 4,685,661 33.333% 142 Tax Levy Year 2009 2010 2011 2012 2013 2014 2015 Tax Rates Village of Oak Brook - - - - - - - Basic Town 0.3579 0.3875 0.4166 0.4567 0.4892 0.4993 0.4783 Junior College #502 0.2127 0.2349 0.2495 0.2681 0.2956 0.2975 0.2786 Grade School #53 0.8159 0.9164 1.0099 1.1465 1.2491 1.2932 1.2435 High School #86 1.0948 1.2011 1.3362 1.4984 1.5681 1.5921 1.5592 Oak Brook Park District 0.1555 0.1740 0.1904 0.2174 0.2369 0.2442 0.2349 Total Tax Rates 2.6368 2.9139 3.2026 3.5871 3.8389 3.9263 3.7945 Data Source Office of the County Clerk NOTE: Basic town includes all county, forest preserve and township rates. Property tax rates are per $100 of assessed valuation. Last Ten Levy Years Property Tax Rates - Direct and Overlapping Governments VILLAGE OF OAK BROOK 143 2016 2017 2018 - - - 0.4490 0.4145 0.4006 0.2626 0.2431 0.2317 1.1710 1.1415 1.1447 1.4731 1.4380 1.4415 0.2229 0.2184 0.2940 3.5786 3.4555 3.5125 144 Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Inc.Apple Computer Costco Wholesale Costco Wholesale Gibsons Steakhouse Care & Barrel Louis Vuitton USA Inc.Lord & Taylor Macy's Macy's Neiman Marcus Neiman Marcus Nordstrom, Inc.Nordstrom, Inc. Nordstrom Rack Nordstrom Rack Peloton Interactive Inc.Sears Roebuck & Co. Room & Board Inc.Tiffany & Co. Top 10 total 5,831,655 $ Top 10 total 5,161,695 $ Total Sales Tax Revenue 12,585,990 $ Total Sales Tax Revenue 10,457,375 $ Top 10 as a Percent of Sales Top 10 as a Percent of Sales Tax Revenue 46.33%Tax Revenue 49.36% Data Source Illinois Department of Revenue - above represents January 1 - December 31 Village cash collections. Note: Confidentiality rules of the Illinois Department of Revenue prohibit disclosure of individual taxpayer payment information. The data presented above is organized alphabetically with revenue for the top ten taxpayers reported in aggregate for the years presented. 2019 2010 Current Year and Nine Years Ago Principal Revenue Taxpayers VILLAGE OF OAK BROOK 145 Village DuPage County Regional Fiscal Direct State DuPage County Water Transportation Year Rate Rate Rate Commission Authority 2010 1.00%5.00%0.25%0.25%0.75% 2011 1.00%5.00%0.25%0.25%0.75% 2012 1.00%5.00%0.25%0.25%0.75% 2013 1.00%5.00%0.25%0.25%0.75% 2014 1.00%5.00%0.25%0.25%0.75% 2015 1.00%5.00%0.25%0.25%0.75% 2016 1.00%5.00%0.25%0.00%0.75% 2017 1.00%5.00%0.25%0.00%0.75% 2018 1.00%5.00%0.25%0.00%0.75% 2019 1.00%5.00%0.25%0.00%0.75% Data Source Village and County Records VILLAGE OF OAK BROOK Direct and Overlapping Sales Tax Rates Last Ten Levy Years 146 Village Non-Home Rule Total Rate Rate 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.50% 0.50%7.50% 0.50%7.50% 0.50%7.50% Governmental Activities Activities Ratio of Total Fiscal Installment Installment Total Outstanding Debt Year Notes Notes Capital Primary To Equalized Ended Payable Payable Leases Government Assessed Valuation* 2010 10,563,180 731,511 - 11,294,691 0.65% 2011 8,736,093 462,674 - 9,198,767 0.58% 2012 6,984,930 168,837 - 7,153,767 0.48% 2013 5,017,176 - - 5,017,176 0.37% 2014 4,592,176 - - 4,592,176 0.36% 2015 4,207,263 - - 4,207,263 0.33% 2016 3,787,263 - - 3,787,263 0.28% 2017 3,330,263 - - 3,330,263 0.23% 2018 3,103,263 - 61,509 3,164,772 0.21% 2019 2,886,263 - 450,871 3,337,134 0.21% Note: Details of the Village's outstanding debt can be found in the notes to the financial statements. * See the Schedule of Demographic and Economic Information on page 152 for personal income and population data. Business-Type VILLAGE OF OAK BROOK Ratios of Outstanding Debt By Type Last Ten Fiscal Years 147 148 Total Total Outstanding Outstanding Debt Per Debt Per Personal Income Capita* 0.76%1,297.94 0.89%1,166.91 0.69%907.49 0.48%636.46 0.44%582.54 0.41%533.71 0.36%480.43 0.32%422.46 0.30%401.47 0.32%423.33 149 (2) *Percentage (1)of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt Village of Oak Brook -$ 100%-$ DuPage County 162,504,806 3.95%6,418,940 DuPage Forest Preserve 102,445,804 3.95%4,046,609 DuPage Water Commission - 4.37%- Sanitary Districts - 17.67%- Park Districts 19,589,771 82.32%16,126,299 Elementary School Districts 107,894,278 20.68%22,312,537 High School Districts 185,653,349 10.91%20,259,607 Junior College 502 148,017,053 4.08%6,044,720 Unit District 205 78,991,580 5.03%3,973,276 Subtotal-Overlapping Debt 805,096,641$ 79,181,990$ Total Direct and Overlapping Debt 805,096,641$ 79,181,990$ *Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Oak Brook, Illinois. **Amount in column (2) multiplied by amount in column (1). Totals may not be exact due to rounding. Data Source Office of the County Clerk December 31, 2019 Schedule of Direct and Overlapping Bonded Debt VILLAGE OF OAK BROOK 150 2010 2011 2012 2013 Legal debt limit 150,013,021 $ 137,966,087 $ 128,842,981 $ 117,240,487 $ Total net debt 2,055,000 1,710,000 1,335,000 1,080,000 applicable to limit Legal debt margin 147,958,021 136,256,087 127,507,981 116,160,487 Total net debt applicable 1.37%1.24%1.04%0.92% to the limit as a percentage of debt limit Last Ten Fiscal Years VILLAGE OF OAK BROOK Legal Debt Margin Information 151 2014 2015 2016 2017 2018 2019 109,992,484 $ 109,084,108 $ 115,276,061 $ 123,289,569 $ 130,392,337 $ 134,790,061 $ 820,000 555,000 280,000 - - - 109,172,484 108,529,108 114,996,061 123,289,569 130,392,337 134,790,061 0.75%0.51%0.24%0.00%0.00%0.00% Legal Debt Margin Calculation for Fiscal 2017 Assessed Value 1,562,783,318$ Legal debt margin 8.625% Debt limit 134,790,061 Debt applicable to limit General obligation bonds - Legal debt margin 134,790,061$ 152 Per Capita Total (2) Fiscal Personal Personal Unemployment Year Population Income Income Rate 2010 8,702 (E)169,718 1,476,886,036 7.6% 2011 7,883 (A)131,719 1,038,340,877 7.5% 2012 7,883 (E)131,719 1,038,340,877 7.3% 2013 7,883 (E)131,719 1,038,340,877 6.4% 2014 7,883 (E)131,719 1,038,340,877 4.6% 2015 7,883 (E)131,719 1,038,340,877 4.6% 2016 7,883 (E)131,719 1,038,340,877 4.4% 2017 8,077 (E)131,719 1,063,894,363 3.9% 2018 8,077 (E)131,719 1,063,894,363 2.9% 2019 8,077 (E)131,719 1,063,894,363 2.2% (A) Actual (E) Estimate Note: Latest information available Data Source U.S. Bureau of Labor Statistics VILLAGE OF OAK BROOK Demographic and Economic Information Last Ten Fiscal Years 153 2019 2010 Percentage of Total Percentage of Employer Rank Employees Village Population Rank Employees Village Population Oakbrook Center Mall 1 7,160 88.6%1 3,150 36.2% Advocate Health Care 2 1,240 15.4%3 1,980 22.8% Ace Hardware Corporation 3 991 12.3%5 780 9.0% Hub Group 4 858 10.6% Chamberlain Group 5 700 8.7% Blistex 6 478 5.9%4 800 9.2% Inland Real Estate Group of Companies 7 408 5.1% TreeHouse Foods 8 400 5.0% Lions Clubs International 9 340 4.2%9 285 3.3% Millenium Trust 10 330 4.1% McDonald's Corporation 2 3,000 34.5% ADT Security Service, Inc.6 350 4.0% Follett Higher Education 7 338 3.9% 9 271 3.1% Reed Elsevier 10 230 2.6% Data Source A-Z Database; Selective Telephone Survey Current Year and Nine Years Ago Principal Employers VILLAGE OF OAK BROOK 154 (1) Estimated Sales 2019 Municipality Rank Sales Per Capita Population Chicago 1 30,227,514,700$ 11,119$ 2,718,555 Naperville 2 3,550,887,100 24,088 147,411 Schaumburg 3 3,310,683,200 44,398 74,569 Springfield 4 2,935,361,300 25,205 116,459 Rockford 5 2,500,391,700 16,908 147,881 Joliet 6 2,361,226,200 15,959 147,957 Aurora 7 2,348,264,600 11,703 200,660 Mount Prospect 8 2,337,961,300 42,410 55,127 Peoria 9 2,171,236,300 18,961 114,512 Orland Park 10 2,092,300,500 35,403 59,100 Glenview 11 1,793,136,000 37,883 47,333 Champaign 12 1,725,574,400 19,882 86,791 Elgin 13 1,647,379,500 14,576 113,023 Bolingbrook 14 1,576,901,700 21,181 74,448 Niles 15 1,565,712,700 52,824 29,640 Vernon Hills 16 1,548,072,100 58,954 26,259 Skokie 17 1,505,157,200 23,374 64,395 Bloomington 18 1,447,476,200 18,479 78,331 Tinley Park 19 1,443,019,000 25,362 56,898 Elmhurst 20 1,367,029,300 29,506 46,331 Des Plaines 21 1,328,825,400 22,640 58,694 Arlington Heights 22 1,284,314,800 16,960 75,724 Gurnee 23 1,268,194,400 41,103 30,854 Oak Brook 24 1,258,194,000 154,912 8,122 Downers Grove 25 1,255,173,400 25,283 49,644 Source: Illinois Department of Revenue - Local Tax Allocation Division and the U.S. Census Bureau. VILLAGE OF OAK BROOK Retail Sales Volume - Top 25 Illinois Communities State Collection Period January 1, 2019 Through December 31, 2019 Note (1): Distributions to municipalities of the 1% municipal tax were used to calculate the estimated retail sales. Actual sales tax amounts were received by the municipalities April 1, 2019 through March 31, 2020. 155 Fiscal Year Village Share/% Change from Non-Home rule % Change from Total % Change from Ended State Sales Preceding Sales Tax Preceding Sales Tax Preceding December 31 Tax Receipts Year Receipts Year Receipts Year 2010 10,457,375 4.3%4,703,153 5.7%15,160,528 4.8% 2011 11,048,561 5.7%4,939,565 5.0%15,988,126 5.5% 2012 11,147,846 0.9%5,132,229 3.9%16,280,075 1.8% 2013 11,641,063 4.4%5,171,736 0.8%16,812,799 3.3% 2014 12,004,427 3.1%5,336,836 3.2%17,341,263 3.1% 2015 12,376,637 3.1%5,667,235 6.2%18,043,872 4.1% 2016 13,021,926 5.2%5,997,652 5.8%19,019,578 5.4% 2017 12,541,909 -3.7%5,711,846 -4.8%18,253,755 -4.0% 2018 12,364,673 -1.4%5,581,941 -2.3%17,946,614 -1.7% 2019 12,585,990 1.8%5,682,101 1.8%18,268,091 1.8% Source: Village Records Note: The Village's Non-Home rule sales tax rate increased from .25% to .50% in 2008. VILLAGE OF OAK BROOK Sales Tax Receipts Cash Basis Last Ten Fiscal Years 156 VILLAGE OF OAK BROOK State Sales Tax Receipts By Month Cash Basis Last Five Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/15 Ended 12/31/16 Ended 12/31/17 Ended 12/31/18 Ended 12/31/19 January 989,753 $ 994,739 $ 1,007,103 $ 941,951 $ 1,054,244 $ February 1,069,783 1,045,429 1,114,054 1,041,681 1,152,709 March 1,707,798 1,658,727 1,594,758 1,639,138 1,704,528 April 796,933 847,398 856,442 837,767 723,019 May 748,968 939,441 791,176 768,902 785,897 June 1,004,066 1,165,340 975,861 994,866 975,961 July 928,749 945,183 922,697 918,572 936,555 August 1,011,901 1,041,277 1,020,651 1,066,624 1,071,211 September 993,355 1,218,034 1,083,420 1,058,046 1,054,405 October 1,011,858 1,045,493 1,020,709 1,020,698 1,013,832 November 1,086,052 1,084,781 1,118,016 1,092,064 1,109,019 December 1,027,421 1,036,284 1,037,022 984,364 1,004,610 Total 12,376,637 $ 13,022,126 $ 12,541,909 $ 12,364,673 $ 12,585,990 $ Source: Village Records 157 FY 2016 FY 2017 FY 2018 FY 2019 0.5%1.2%-6.5%11.9% -2.3%6.6%-6.5%10.7% -2.9%-3.9%2.8%4.0% 6.3%1.1%-2.2%-13.7% 25.4%-15.8%-2.8%2.2% 16.1%-16.3%1.9%-1.9% 1.8%-2.4%-0.4%2.0% 2.9%-2.0%4.5%0.4% 22.6%-11.1%-2.3%-0.3% 3.3%-2.4%0.0%-0.7% -0.1%3.1%-2.3%1.6% 0.9%0.1%-5.1%2.1% 5.2%-3.7%-1.4%1.8% From Preceding Year Percentage Change 158 VILLAGE OF OAK BROOK Non-Home Rule Sales Tax Receipts By Month Cash Basis Last Five Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/15 Ended 12/31/16 Ended 12/31/17 Ended 12/31/18 Ended 12/31/19 January 457,128 $ 457,292 $ 466,623 $ 420,506 $ 470,364 $ February 495,179 485,225 524,829 472,116 527,597 March 795,630 778,457 756,825 758,180 794,849 April 361,858 383,224 382,843 373,991 321,103 May 338,862 431,470 361,160 341,784 351,510 June 457,660 539,151 445,584 449,890 441,058 July 423,983 434,261 425,623 417,534 423,426 August 469,228 481,286 459,149 486,225 482,610 September 456,114 567,454 492,607 482,931 475,733 October 468,027 481,499 458,506 465,528 460,860 November 474,287 476,167 471,254 469,270 479,809 December 469,279 482,166 466,843 443,986 453,182 Total 5,667,235 $ 5,997,652 $ 5,711,846 $ 5,581,941 $ 5,682,101 $ Source: Village Records 159 FY 2016 FY 2017 FY 2018 FY 2019 0.0%2.0%-9.9%11.9% -2.0%8.2%-10.0%11.8% -2.2%-2.8%0.2%4.8% 5.9%-0.1%-2.3%-14.1% 27.3%-16.3%-5.4%2.8% 17.8%-17.4%1.0%-2.0% 2.4%-2.0%-1.9%1.4% 2.6%-4.6%5.9%-0.7% 24.4%-13.2%-2.0%-1.5% 2.9%-4.8%1.5%-1.0% 0.4%-1.0%-0.4%2.2% 2.7%-3.2%-4.9%2.1% 5.8%-4.8%-2.3%1.8% From Preceding Year Percentage Change 160 Fiscal Years 2010 2011 2012 2013 2014 2015 General Merchandise 1,988,286$ 2,025,257$ 2,087,873$ 1,859,342$ 1,611,302$ 1,408,191$ Food 49,666 45,910 49,616 52,331 57,974 170,497 Drinking and eating places 1,388,881 1,428,598 1,506,289 1,615,029 1,717,184 1,770,370 Apparel 2,987,468 3,034,654 3,110,107 3,065,618 3,141,898 3,078,876 Furniture, H.H. and radio 957,980 975,472 1,090,244 1,251,860 1,421,458 1,606,454 Lumber, building and hardware 17,588 12,853 24,600 10,653 8,686 6,623 Automotive and filling stations 1,623,980 1,509,528 1,619,343 1,674,689 1,682,593 1,698,040 Drugs and other retail 1,265,890 1,472,117 1,124,986 1,250,569 1,530,596 1,817,539 Agriculture and all others 354,622 422,368 418,871 421,724 486,652 506,631 Manufacturers 83,952 126,281 174,572 687,312 451,814 238,943 Total 10,718,314$ 11,053,036$ 11,206,502$ 11,889,128$ 12,110,156$ 12,302,164$ Village direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00% Source: Illinois Department of Revenue - Local Tax Allocation Division Note: Gross receipts include both Cook and DuPage County 1% municipal sales tax. Amounts reflect sales tax collected by the Village between April 1 and March 31 as reported by the State. VILLAGE OF OAK BROOK Sales Tax By Category Last Ten Fiscal Years 161 2016 2017 2018 2019 1,305,272$ 1,180,117$ 1,142,607$ 1,056,602$ 167,143 191,370 212,053 194,717 1,844,551 1,866,420 1,931,879 1,909,022 2,989,258 2,931,827 2,947,860 2,840,152 1,613,318 1,472,053 1,601,424 1,485,474 4,642 6,603 1,478 56,539 1,683,947 1,884,059 1,921,190 2,003,910 1,857,751 1,842,238 1,761,720 1,784,167 1,368,475 805,122 633,820 594,012 204,789 262,420 499,353 657,270 13,039,146$ 12,442,227$ 12,653,383$ 12,581,865$ 1.00%1.00%1.00%1.00% 162 Fiscal Years 2010 2011 2012 2013 General Merchandise 973,309$ 1,006,608$ 1,028,630$ 923,522$ Food 19,332 20,436 22,769 24,206 Drinking and eating places 692,224 710,688 749,294 804,095 Apparel 1,492,720 1,516,414 1,554,292 1,532,230 Furniture, H.H. and radio 478,065 486,841 544,734 624,646 Lumber, building and hardware 8,807 6,427 12,299 5,326 Automotive and filling stations 438,722 413,502 444,986 462,595 Drugs and other retail 496,243 522,092 574,857 581,045 Agriculture and all others 160,284 190,247 186,919 189,403 Manufacturers 41,947 63,114 75,056 74,826 Total 4,801,654$ 4,936,368$ 5,193,836$ 5,221,895$ Village non-home rule sales tax rate 0.50%0.50%0.50%0.50% Source: Illinois Department of Revenue - Local Tax Allocation Division Note The Village's Non-Home rule sales tax increased from .25% to .50% effective January 1, 2008. VILLAGE OF OAK BROOK Non-Home Rule Sales Tax By Category Last Ten Fiscal Years Note: Gross receipts include both Cook and DuPage County 1% municipal sales tax. Amounts reflect sales tax collected between April 1 and March 31 as reported by the State. 163 2014 2015 2016 2017 2018 2019 799,234$ 697,506$ 646,561$ 584,228$ 566,703$ 522,037$ 26,475 82,154 79,404 90,688 100,691 93,947 854,898 880,598 916,540 927,586 945,281 952,124 1,570,256 1,538,617 1,493,830 1,464,698 1,450,824 1,419,082 707,730 801,746 806,090 737,997 788,327 742,296 4,341 3,290 2,311 3,292 721 28,266 461,447 454,848 443,470 505,785 523,197 538,943 717,631 862,594 880,058 871,568 824,589 848,731 221,375 233,499 662,998 375,069 282,685 268,657 78,163 80,757 88,331 125,245 240,930 326,811 5,441,550$ 5,635,608$ 6,019,593$ 5,686,156$ 5,723,949$ 5,740,894$ 0.50%0.50%0.50%0.50%0.50%0.50% 164 Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 111 Board of Trustees 0.50 0.75 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 112 Village Clerk 1.50 1.75 1.95 1.25 1.25 2.75 2.08 2.03 1.58 1.55 121 Legal 0.25 0.25 0.35 0.25 0.25 0.25 0.35 0.00 0.00 0.00 131 General Management 2.25 3.00 2.55 2.50 3.00 2.00 1.72 1.60 1.60 1.50 132 Human Resources 1.75 1.50 1.75 2.00 2.00 2.00 1.10 1.28 0.95 1.25 134 Risk Management 0.50 0.50 0.40 0.50 0.50 0.50 0.20 0.20 0.20 0.20 136 General Services 2.00 1.75 1.35 0.00 0.00 0.00 1.20 1.20 1.20 1.20 137 Business Licenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 138 Communications and Marketing 0.00 0.00 0.00 0.00 0.50 0.00 0.00 0.00 0.00 0.00 141 Purchasing 0.50 0.50 0.85 1.00 1.00 1.00 0.00 0.00 0.00 0.00 151 Information Services 2.25 2.00 2.60 2.00 2.00 2.00 2.65 2.90 2.40 2.95 152 Geographic Information Systems 0.00 0.00 0.00 0.00 0.00 0.00 0.35 0.35 0.35 0.35 Legislative and General Management Total 11.50 12.00 12.30 10.00 11.00 11.00 10.15 10.06 8.78 9.50 211 Financial Services Management 1.00 1.00 1.00 1.00 1.00 1.00 0.88 1.00 1.00 1.00 221 Accounting and Reporting 3.00 2.75 2.75 3.00 3.00 3.00 4.05 3.05 3.05 3.40 231 Customer Service 0.00 0.00 0.00 1.50 1.50 1.50 0.00 0.00 0.00 0.00 241 Purchasing 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 Financial Services Total 4.00 3.75 3.75 5.50 5.50 5.50 5.93 5.05 5.05 5.40 321 Buildings and Grounds 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 3.00 3.00 335 Forestry 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 0.20 0.20 341 Garage Operations 2.00 2.00 2.00 2.00 2.00 2.00 2.48 2.48 1.98 1.98 351 Water Operations 6.50 6.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 360 Public Works Management 2.50 2.50 2.00 2.50 2.50 2.50 3.00 3.00 3.00 3.00 361 Streets - General Salaries 8.00 8.00 8.00 6.50 6.50 6.50 6.90 7.90 7.40 7.40 Public Works Total 20.00 19.50 19.00 19.00 19.00 19.00 20.58 22.08 22.58 22.58 511 Library General Operations 4.00 4.50 5.25 5.50 5.50 6.50 5.88 5.75 4.75 5.10 521 Technical Services 3.00 2.75 2.75 2.00 2.00 2.00 1.80 1.80 1.80 1.80 531 Reference and User Services 1.75 2.25 2.50 3.00 3.00 2.00 1.95 1.90 1.90 1.90 541 Youth Services 1.50 2.00 1.50 1.50 2.00 2.00 1.95 1.90 1.90 1.95 Library Total 10.25 11.50 12.00 12.00 12.50 12.50 11.58 11.35 10.35 10.75 (Continued) Last Ten Fiscal Years Budgeted Full-Time Equivalent Employees VILLAGE OF OAK BROOK 165 Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 611 Police Services Management 3.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 621 Police Field Services 31.50 31.50 32.20 31.00 31.00 31.00 32.20 32.20 32.20 32.20 622 Police Auxiliary 0.00 0.00 0.00 0.00 0.00 5.00 0.28 0.50 0.50 0.50 631 Police General Support 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 632 Police Investigations 8.00 8.00 7.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 633 Village Communications Center 9.00 7.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 634 Police Support Services 2.50 2.50 6.55 3.50 3.50 3.50 3.25 3.25 3.25 3.25 635 Police Public Relations/Crime Prevention 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 636 Police Adjudication 0.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Police Total 57.00 54.50 50.75 47.50 47.50 52.50 48.73 48.95 48.95 48.95 700 Fire and EMS - General Salaries**31.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 711 Rescue and Fire Service Management 1.50 1.50 1.50 1.50 2.20 2.85 2.35 2.35 2.35 2.35 723 Fire Rescue and Training 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 0.20 0.20 731 Emergency Medical Service 6.00 6.00 6.00 6.00 6.00 6.00 6.40 6.40 6.60 11.60 741 Fire Prevention and Public Safety Education 0.00 0.00 0.00 0.00 0.00 0.00 3.60 3.60 3.60 3.60 Fire Total***38.50 38.50 38.50 38.50 39.20 39.85 43.55 43.55 43.75 48.75 811 Sports Core General Operations 1.75 1.50 0.75 0.25 1.50 0.50 1.40 1.50 1.40 1.15 812 Swimming Operations 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.15 1.15 0.75 813 Tennis 1.15 1.15 1.15 1.15 1.15 1.15 1.15 0.65 0.75 0.75 821 Sports Core Food & Beverage Operations 0.00 0.50 0.50 0.50 1.00 1.50 1.50 1.75 1.10 1.50 822 Poolside Grill Food & Beverage Operations 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.00 0.80 823 Golf Club Food & Beverage Operations 0.50 0.50 0.50 0.50 0.50 0.50 3.80 3.80 3.80 3.80 831 Golf Club General Operations 2.75 2.25 2.00 2.00 2.00 2.00 8.00 10.15 10.15 10.15 832 Golf Learning and Practice 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 833 Golf Cart Operations 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 834 Golf Course Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 13.50 12.50 12.50 12.00 Sports Core Total 13.95 13.70 12.70 12.20 13.95 13.45 34.15 34.90 33.45 33.50 460 Engineering 3.50 3.25 3.50 3.50 3.50 3.50 3.40 2.36 1.88 1.88 911 Community Development Management 2.00 2.00 2.00 2.00 2.50 2.50 2.60 2.60 3.08 3.08 921 Code Enforcement 3.50 3.50 4.25 4.25 5.50 6.00 5.91 5.23 5.23 5.23 Community Development Total 9.00 8.75 9.75 9.75 11.50 12.00 11.91 10.19 10.19 10.19 GRAND TOTAL ALL DEPARTMENTS 164.20 162.20 158.75 154.45 160.15 165.80 186.58 186.13 183.10 189.62 **Six contract firefighter/paramedics are used to supplement the full-time complement of firefighter/paramedics. Source: Village Records ***Part-time positions that are filled by off-duty full-time Fire Department personnel are not included. These positions include Fire Prevention Inspectors, Building Inspectors, Administrative Aide, EMS Director, Public Safety Information Coordinator, and CPR Coordinator. Last Ten Fiscal Years VILLAGE OF OAK BROOK Budgeted Full-Time Equivalent Employees (Continued) *Summary represents full-time equivalent positions not including seasonal, temporary or situational employees. Regular part-time employee hours have been rounded to the nearest quarter full-time equivalent. 166 VILLAGE OF OAK BROOK Operating Indicators Last Ten Fiscal Years Function/Program 2010 2011 2012 2013 2014 2015 Public Safety Police Physical arrests 357 267 234 178 196 208 Parking violations 877 1,245 636 501 306 299 Traffic violations 4,090 3,374 3,137 2,897 2,986 2,082 Fire EMS Incidents 1,006 1,091 1,113 1,191 1,321 1,329 Fire Incidents 918 788 656 667 742 600 Communications Center Police calls dispatched 9,666 9,666 12,696 18,552 19,853 19,442 Fire/EMS calls dispatched 2,240 2,156 2,071 2,294 2,448 2,246 Water New water meters installed 10 11 14 15 16 33 Water main breaks repaired 59 50 61 48 36 17 Water pumped (Mil. Gals.)1,136 1,060 1,173 1,113 1,080 1,152 Library Total Circulation 87,906 84,768 91,017 93,300 90,485 91,205 Avg. Daily Circulation 260.5 253.0 269.0 274.0 265.0 270.0 Total Holdings 116,386 124,757 128,343 131,658 131,973 102,441 Community Development Building permits issues 696 705 770 811 837 850 Inspections 2,193 2,139 2,311 2,617 2,648 2,790 Estimated construction value 51,559,533$ 58,775,804$ 76,987,646$ 131,935,998$ 110,922,495$ 174,948,935$ Sports Core B&T Recreation Membership 300 320 363 347 338 307 Social Memberships 64 59 67 68 82 81 Total Events 39 35 56 66 72 71 Golf Memberships 207 182 154 146 143 142 Total Golf Rounds 37,750 35,196 38,637 34,670 33,861 34,019 Data Source Various village departments n/a Information was unavailable for this given period. 167 2016 2017 2018 2019 191 212 181 178 901 443 404 317 1,465 1,495 1,398 1,596 1,432 1,380 1,408 1,468 630 672 722 693 23,924 21,656 23,716 23,200 2,407 2,493 2,616 2,711 19 23 13 7 43 31 29 23 1,087 995 966 889 112,423 105,129 114,014 140,201 318.0 312.0 337.0 384.0 97,201 94,353 91,789 88,520 841 943 908 920 2,999 2,963 2,607 2,510 99,520,330$ 176,470,285$ 135,704,908$ 167,423,370$ 317 294 307 265 77 - - - 75 65 74 88 145 151 158 150 39,324 39,863 35,256 36,253 168 VILLAGE OF OAK BROOK Capital Asset Statistics Last Ten Fiscal Years Function/Program 2010 2011 2012 2013 2014 2015 2016 Public Safety Police Stations 1 1 1 1 1 1 1 Area patrols 4 5 5 5 5 5 5 Patrol units 12 11 11 11 11 11 11 Fire Fire stations 2 2 2 2 2 2 2 Engine 1 1 1 1 1 1 1 Truck 1 1 1 1 1 1 1 Squad 1 1 1 1 1 1 1 Ambulances 2 2 2 2 2 2 2 Incident Command Vehicle 1 1 1 1 1 1 1 Reserve Apparatus 4 4 4 4 4 4 4 Staff & Support Vehicles 5 5 5 5 4 3 3 Public Works Arterial streets (miles)8.5 8.5 8.5 8.5 8.5 8.5 8.5 Residential streets (miles)49 49 49 49 49 49 49 Streetlights 565 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 11 Water Water mains (miles)105 105 105 105 105 105 105 Fire hydrants 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Storage capacity (gallons)8.0 mil.8.0 mil.8.0 mil.8.0 mil.8.0 mil.8.0 mil.8.0 mil. Data Source Various village departments 169 2017 2018 2019 1 1 1 5 5 5 11 11 11 2 2 2 2 1 1 1 1 1 2 1 1 2 2 3 1 1 1 4 4 3 3 3 4 8.5 8.5 8.5 49 49 49 565 565 565 11 11 11 105 105 105 1,500 1,500 1,500 8.0 mil.8.0 mil.8.0 mil.