2019 Citizen PAFRVillage of Oak Brook, Illinois
Popular Annual Financial Report
For the Year Ended December 31, 2019
Table of Contents
About Village of
Oak Brook 1
Village of Oak Brook
Leadership 2
Fund Structure, Measure
Focus, and Basis of
Accountfng 3
Explanatfon, Analysis,
and Discussion of
Financial Statements 4-11
Village Sales Tax 12
Key Statfstfcs 13
A Message From the Village President
Dear Citfzens of Oak Brook,
We are pleased to present the Popular Annual Financial Report (PAFR) for the fiscal
year ended December 31, 2019. The PAFR is a high level report for citfzens who wish to
gain a general understanding and summary of the Village’s financial actfvitfes and
positfon. Informatfon contained in this report is a summarized version of the Village’s
official financial statements, the Comprehensive Annual Financial Report (CAFR). The
PAFR presents financial data on the same basis of accountfng as the CAFR, just in a
simplified manner. While the annual CAFR is over 150 pages, the PAFR is condensed
down to just over 10 pages.
The Village’s fiscal year 2019 annual audit was completed on May 22, 2020 by Baker
Tilly Virchow Krause, LLP. The CAFR is compliant with generally accepted accountfng
principles (GAAP) and has received an unmodified (“clean”) opinion from our auditors.
The full disclosure financial statement, CAFR, be found on the Village’s website.
The Village of Oak Brook has received all three of the Government Finance Officer’s
Associatfon (GFOA) awards for local government finance:
Distinguished Budget Presentation Award (8 consecutive years)
Certificate of Achievement for Excellence in Financial Reporting (41
consecutive years)
Award for Outstanding Achievement in Citizen’s (Popular) Financial
Reporting (6 consecutive years)
Our commitment to the GFOA award programs help ensure financial informatfon is
presented in a way that is consistent with the highest standards in governmental
financial reportfng.
The Village Board and I appreciate your input and contfnued commitment in making
Oak Brook a great community to live and work. If you have any questfons concerning
this report or would like to offer any ideas or suggestfons for improvement, please
contact Jason Paprocki, Finance Director, at (630) 368-5070 or email at
jpaprocki@oak-brook.org.
Sincerely,
Gopal Lalmalani
Village President
Popular Annual Financial Report
Village of Oak Brook, Illinois
Fiscal Year 2019
Important Numbers
and Addresses
Village Hall
630/368-5000
1200 Oak Brook Road
Oak Brook, IL 60523
Fire HQ
(Non-Emergency)
630/368-5200
Police HQ
(Non-Emergency)
630/368-8700
Public Works
630/368-5270
For Police or Fire
Emergencies
Dial 911
Village of Oak Brook
2019 Quick Facts
Populatfon 8,077
Per Capita Income $132,500
Median Home Value $666,646
Unemployment Rate 2.2%
Credit Ratfng Aa1
Total Cash and
Investments $45.5 million
General Fund Cash
and Investments $21.2 million
General Fund
Reserve (cash to 2020
budgeted operatfng
expenditures) 11.0 months
Outstanding Debt* $3.3 million
2019 Annual Budget $68.8 million
Employees (FTE’s)** 189.6
About the Village of Oak Brook 1
The Village was incorporated February 21, 1958 by Paul Butler. Oak Brook is a community where impressive corporate
and retail centers, beautfful homes, lush parks, and forest combine to make a dynamic and invitfng atmosphere. Oak
Brook also offers an exceptfonal variety of actfvitfes that appeal to a broad range of interests, such as; polo matches at
the Oak Brook Polo Grounds; an 18-hole championship Golf Club; a Bath and Tennis Club facility that includes a
swimming pool, a diving pool, tennis courts, and an
events venue; and numerous walking trails and paths.
The Village of Oak Brook is located about 15 miles west
of the Chicago Loop, near the geographic center of the
seven-county Chicago metropolitan area. Excellent
transportatfon links are provided to all parts of the
greater metropolitan area by a network of tollways and
Federal and State highways which pass through or near
the Village. The Oak Brook area is neighbors with the
communitfes of Lombard, Villa Park, Elmhurst,
Oakbrook Terrace, Downers Grove, Westmont,
Clarendon Hills, Hinsdale, and Westchester.
The Village places a great emphasis on interactfng with
local businesses, both existfng and potentfal. A large
portfon of the Village’s revenue stream is derived from
sales tax, which is crucial to the Village’s General Fund operatfng budget. The strong business community in Oak Brook
has allowed the Village to operate without a property tax levy. The Village is able to offer a number of services, such as
public safety, public works, library, and recreatfon while maintaining a low tax community. The Village also feeds into a
number of outstanding school districts, including: Butler District 53, Downers Grove District 58, Elmhurst District 205,
Hinsdale District 181, and Salt Creek District 48.
*Consists of $2.9 million TIF note, which is not
an obligatfon of the Village. Note is paid from
available pledged sales and real estate taxes of
the Promenade TIF Fund.
**Based on 2,080 annual hours.
The Village of Oak Brook operates under the Village form of
government and is governed by our elected Village President and a six
member Board of Trustees—each elected at large for a four-year term
of office. The Village Clerk is elected for a four-year term, attends
meetfngs of the Village Board, keeps its minutes, and is the official
custodian of Village records. Electfons are held biennially, during odd-
numbered years, on the first Tuesday in April.
The Village Board’s primary functfon is policy making. The Village
President, with the consent of the Board, appoints a Village Manager
to administer daily administratfve operatfons of the Village. The
Village President presides over meetfngs of the Board, and selects and
removes appointed officers of various boards, commissions and
committees with the consent of the Board. The mission of the Village
is to provide the community with excellent local government services
and the best educatfonal opportunitfes that meet the needs of its
citfzens and are delivered in a professional, responsive, and fiscally
responsible manner. This mission is carried out with six specific goals.
3
Village of Oak Brook Leadership 2
Village of Oak Brook Organizatfonal Chart Management Team
Village Manager
Riccardo Ginex
Police Chief Public Works
James Kruger Doug Patchin
Fire Chief Library
Barry Liss Jacob Post
Informatfon Technology Golf Course
James Fox Sean Creed
Development Services Finance
Tony Budzikowski Jason Paprocki
Human Resources
Kathy Vonachen
From left to right: Trustee Asif Yusuf, Trustee Moin Saiyed, Trustee Philip Cuevas, Village Clerk Charlotte
Pruss, Village Attorney Michael Castaldo, President Gopal Lalmalani, Village Manager Riccardo Ginex, Trustee
John Baar, Trustee Michael Manzo, Trustee Edward Tiesenga.
Like other local governments, the Village of Oak Brook utflizes fund accountfng. Fund accountfng segregates related
accounts and actfvitfes into separate funds to ensure and demonstrate compliance with legal and regulatory
requirements. Village funds are classified into three categories: governmental funds, business-type funds, and
fiduciary funds.
Governmental funds are used to account for all or most of
the Village’s general actfvitfes, including administratfon,
public safety, highways and streets, library, and
community development. Governmental funds are
categorized as: the General Fund, special revenue funds,
and capital projects funds. The General Fund is used to
account for and report all financial resources not
accounted for and reported in another fund. Special
revenue funds are used to account for and report specific
revenue sources that are restricted or committed for
specified purposes other than capital or debt. Capital
projects funds are used to account for and report
resources that are restricted, committed, or assigned for
capital outlay.
Business-type funds are used to account for actfvitfes similar to those found in the private sector, where the
determinatfon of net income is necessary or useful for sound financial administratfon. Goods or services from these
actfvitfes can be provided to either outside partfes (enterprise funds) or to other departments or agencies primarily
within the government (internal service funds) with costs being recovered through user-fees and charges.
Fiduciary funds are used to account for assets held on behalf of outside partfes, including other governments, or on
behalf of other funds within the government. Financial actfvity of fiduciary funds are not included in governmental or
business-type actfvitfes.
The Village presents two types of financial statements:
the Government-Wide Financial Statements and Fund
Financial Statements. In the Government-Wide Financial
Statements, the aggregate of all Governmental and all
Business-Type funds are presented. The Government-
Wide Financial Statements and Business-Type Fund
financial statements are prepared using the economic
resources measurement focus and the accrual basis of
accountfng. The Governmental Fund Financial
Statements are prepared using the current financial
resources measurement focus and modified accrual basis
of accountfng. There are a few major differences
between these two reportfng basis.
Fund Structure, Measure Focus, and Basis of Accountfng 3
Debt Payments
Governmental = Recognized as an expenditure.Government-Wide/Business-Type = Recognized as a
reduction of a liability.
Depcreciation
Governmental = Not recognized. Government-Wide/Business-Type = Recognized as an
expense.
Capital Expenditures
Governmental = Recognized as an expenditure.Government-Wide/Business-Type = Recognized as an
increase in capital assets.
Expenditure Recognition
Governmental = When the related liability is incurred,
except for debt, claims, judgements, compensated
absenses, and pension expenditures.
Government-Wide/Business-Type = When liability a is
incurred or an economic asset is used.
Revenue Recognition
Governmental = When revenues are measurable and
available.
Government-Wide/Business-Type = When revenues
are earned.
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
2015 2016 2017 2018 2019MillionsHistorical Total Net Position
Governmental Business-Type
The Statement of Net Position (commonly known as the “balance sheet”) reports informatfon on all of the Village’s
assets, liabilitfes, and deferred inflows and outilows, with the difference reported as its “net positfon.” Net positfon
measures the resources (cash, investments, receivables, capital assets, etc.) of the Village and any claims (payables,
deposits, debt, etc.) against those resources. Over tfme, increases or decreases in net positfon may serve as a useful
indicator of whether the financial positfon of the Village is improving or deterioratfng. The table below shows that,
as of December 31, 2019, the Village’s total net positfon was $92.6 million, which is an increase of $7.1 million from
2018.
The largest portfon of the Village’s net positfon, $101.6 million, reflects its investment in capital assets, less any
outstanding debt used to acquire those assets. The Village uses these capital assets to provide various services to its
residents. Consequently, these assets are not available for future spending. An additfonal portfon of the net positfon,
approximately $15.0 million, is subject to external restrictfons on how it may be used.
The unrestricted portfon of net positfon represents a $24.0 million deficit. The deficit balance is primarily due to the
unfunded pension liabilitfes related to the IMRF (Illinois Municipal Retfrement Fund), Police, and Fire pension plans and
the OPEB obligatfon. The deficit unrestricted net positfon will gradually improve as the pension plans become better
funded in future years. The total deficit unrestricted net positfon improved $1.0 million in 2019 due to current year
results and strong market conditfons for the Village’s pension plans.
Explanatfon, Analysis, and Discussion of Financial Statements 4
Governmental Business-Type Total Primary
Actfvitfes Actfvitfes Government Total
2019 2018 2019 2018 2019 2018 Change
Cash and Investments $37.9 $35.7 $7.6 $7.1 $45.5 $42.8 $2.7
Current and Other Assets 8.8 8.4 1.6 2.2 10.4 10.6 (0.2)
Capital Assets 68.0 65.5 34.0 29.8 102.0 95.3 6.7
Total Assets $114.7 $109.6 $43.2 $39.1 $157.9 $148.7 $9.2
Deferred Outilows of Resources $5.4 $7.7 $1.2 $0.2 $6.6 $7.9 (1.3)
Long-Term Liabilitfes $57.6 $60.1 $2.2 $0.7 $59.8 $60.8 ($1.0)
Other Liabilitfes 5.2 4.5 1.2 0.7 6.4 5.2 1.2
Total Liabilitfes $62.8 $64.6 $3.4 $1.4 $66.2 $66.0 $0.2
Deferred Inflows of Resources $5.5 $4.3 $0.2 $0.8 $5.7 $5.1 $0.6
Net Investment in
Capital Assets $67.6 $65.4 $34.0 $29.8 $101.6 $95.2 $6.4
Restricted 15.0 15.3 - - 15.0 15.3 (0.3)
Unrestricted (30.8) (32.3) 6.8 7.3 (24.0) (25.0) 1.0
Total Net Positfon $51.8 $48.4 $40.8 $37.1 $92.6 $85.5 $7.1
(in millions)
Statement of Net Position
The Village has seen steady improvements in total net positfon over
the past five years. Net positfon has grown from $78.3 million in
2015 to $92.6 million in 2019. The Governmental Actfvitfes portfon
has increased from $44.8 million in 2015 to $51.8 million in 2019, a
$7.0 million, or 15.6%, improvement. The Business-Type Actfvitfes
portfon has increased from $33.5 million in 2015 to $40.8 million in
2019, a $7.3 million, or 21.8%, improvement. Although total net
positfon has increased, the Village stfll maintains unrestricted
deficits due to unfunded pension liabilitfes.
The foundatfon of the Village’s financial planning is centered on the
Village’s policy of maintaining a General Fund cash and investments
reserve that meets or exceeds six months of annual operatfng
expenses. The six month policy level was established due to the
Village not having the predictability of real estate tax revenue.
Approximately 50% of the Village’s General Fund operatfng budget is
funded by sales tax revenue, which is susceptfble to economic
downturns and consumer spending. This conservatfve policy seeks to
ensure the Village will have sufficient funds on hand to operate in an
emergency situatfon as well as having sufficient tfme to address any
volatflity. Over the past five years, the Village has been able to
significantly increase its General Fund reserve balance to $21.3
million, or 11.3 months of operatfng expenditures.
As of December 31, 2019, the Village had $45.5 million in cash and investments on hand, an increase of $2.7 million
from December 31, 2018. Cash and investments by fund is:
Explanatfon, Analysis, and Discussion of Financial Statements 5
The Village’s overall cash and investment balance is made up
of various sources. The checking and Illinois Funds portfon
are highly liquid and have immediate access. Illinois Funds
balances earned interest during 2019 at a rate that ranged
from 1.72% to 2.47%. The Village’s Corporate Bonds,
Municipal Bonds, Certfficates of Deposits, and Government
& Agency Obligatfons generally mature within five year. The
investment portiolio is managed to have individual securitfes
maturing nearly every month to keep the portiolio relatfvely
liquid. The overall investment portiolio earned interest
during 2019 at an average weighted yield of 2.35% to 2.44%.
Summary on Village Cash and Investments
Fund 2018 Balance 2019 Balance Change
General $17,932,009 $21,266,132 $3,334,123
Hotel Tax 4,809,830 5,424,703 614,873
Motor Fuel Tax 779,844 1,045,152 265,308
Foreign Fire Insurance 259,393 183,154 (76,239)
Infrastructure 9,278,944 8,248,160 (1,030,784)
Promenade TIF 257,485 304,194 46,709
Water 6,426,743 6,937,632 510,889
Sports Core 192,897 349,076 156,179
Golf Surcharge 436,292 346,544 (89,748)
Self Insurance 468,568 308,820 (159,748)
Garage 331,134 275,988 (55,146)
Equipment Replacement 1,622,866 807,822 (815,044)
Total $42,796,005 $45,497,377 $2,701,372
$9.0
$11.0
$13.0
$15.0
$17.0
$19.0
$21.0
2015 2016 2017 2018 2019MillionsHistorical General Fund Reserve
6 Month Reserve Actual Cash Balance
(in millions)
Explanatfon, Analysis, and Discussion of Financial Statements
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retfrement Fund (IMRF), an agent
multfple-employer public employee retfrement system; the Police Pension Plan, which is a single-employer pension
plan; and the Firefighter’s Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels,
employee contributfons, and employer contributfons for all three plans are governed by Illinois Compiled Statutes and
can only be amended by the Illinois General Assembly. For further informatfon on these pension plans, refer to the
Village’s 2019 CAFR.
Related to these pension plans, the Village reports, under long-term liabilitfes on the Statement of Net Positfon, an
unfunded pension liability of $47.6 million for governmental actfvitfes and $1.5 million for business-type actfvitfes, for a
total of $49.1 million as of December 31, 2019.
Actual cash contributfons to the pension funds for 2019 totaled $4.8 million. This consisted of: $0.6 million for the
IMRF pension plan, $2.1 million for the Police pension plan, and $2.1 million for the Fire pension plan. Current State
statutes require the Village’s contributfons must accumulate to the point where the past service cost for the Police and
Fire pension plans is 90% funded by the year 2040. The Village strives to have it’s pension funds 100% funded.
The Village’s total net pension liability at 12/31/19 is:
IMRF Police Pension Fire Pension Total
Total Pension Liability $41,066,285 $63,107,741 $52,392,618 $156,566,644
Plan Fiduciary Net Positfon 35,361,100 41,183,345 30,896,235 107,440,680
Unfunded Pension Liability $5,705,185 $21,924,396 $21,496,383 $49,125,964
Plan Funded Rate 86.11% 65.26% 58.97% 68.62%
Combined annual Public Safety (Police and Fire) recommended pension contributfons are expected to increase from
$4.4 million in 2020 to $6.1 million in 2040 assuming a 100% funding target. Increasing pension costs could have an
impact on future services provided by the Village. Actual contributfons and unfunded liability for these years could also
vary from projectfons depending on key actuarial assumptfons, including salary increases, mortality tables, investment
returns, and Village funding levels. Projectfons are updated each year through an actuarial valuatfon to determine the
actual funding status of the plans.
In additfon, current efforts to consolidate downstate pension plans could have a
significant impact on these projectfons and the health of the pension plans. The
Village will contfnue to monitor consolidatfon and its impact on the Village’s
financial future.
Summary on Village Pension Plans
6
$3
$4
$5
$6
$7
MILLIONSProjected Public Safety Pension Contributions
The Statement of Activities (commonly known as the “income statement”) reports all financial actfvity for the fiscal
year ended December 31, 2019.
This statement presents high-level summary informatfon about how the Village’s net positfon changed during the fiscal
year. Overall, the Village’s total net positfon has increased $7.1 million, or 8.3%, during fiscal year 2019. Governmental
actfvitfes net positfon increased $3.4 million, or 7.0%, from 2018 and business-type actfvitfes net positfon increased
$3.7 million, or 10.0%, from 2018.
Total revenues increased $2.2 million, or 4.6%, compared to prior year. The Village experienced increases in nearly all
major revenue sources during 2019. Sales and local use taxes contfnue to be one of the Village’s largest revenue
source at $18.5 million, but reflected a decrease of $0.1 million, or 0.5%, compared to the prior year. Charges for
services, which is primarily made up of water sales, Sports Core memberships and fees, and building permit revenue,
was $20.5 million in 2019, an increase of $1.3 million, or 6.8%, compared to the prior year.
Total expenses decreased $0.7 million, or 1.6%, compared to the prior year. The decrease is comprised of a few
different factors: a $1.7 million decrease in Waterworks System materials and supplies due to the 2018 water meter
replacement project, and offset by a $0.6 million increase in Public Works related street resurfacing and project
engineering costs. There were also normal budgeted personnel and contractual related increases that are typically
seen every year.
Explanatfon, Analysis, and Discussion of Financial Statements 7
Governmental Business-Type Total Primary
Actfvitfes Actfvitfes Government Total
Revenues 2019 2018 2019 2018 2019 2018 Change
Program Revenues
Charges for Services $7.0 $6.0 $13.5 $13.2 $20.5 $19.2 $1.3
Grants and Contributfons 0.3 0.2 - - 0.3 0.2 0.1
General Revenues
Sales and Local Use Taxes 18.5 18.6 - - 18.5 18.6 (0.1)
Utflity Taxes 6.3 6.1 - - 6.3 6.1 0.2
Other Taxes 3.1 3.0 - - 3.1 3.0 0.1
Investment Income 1.1 0.6 0.2 0.1 1.3 0.7 0.6
Miscellaneous 0.1 0.2 0.1 - 0.2 0.2 -
Transfers (0.7) - 0.7 - - - -
Total Revenues $35.7 $34.7 $14.5 $13.3 $50.2 $48.0 $2.2
Expenses
General Government $5.8 $5.6 $- $- $5.8 $5.6 $0.2
Public Safety 18.9 18.9 - - 18.9 18.9 -
Public Works 5.6 5.0 - - 5.6 5.0 0.6
Culture and Recreatfon 1.8 1.7 - - 1.8 1.7 0.1
Waterworks System - - 7.1 8.8 7.1 8.8 (1.7)
Sports Core - - 3.7 3.6 3.7 3.6 0.1
Interest and Fiscal Charges 0.2 0.2 - - 0.2 0.2 -
Total Expenses $32.3 $31.4 $10.8 $12.4 $43.1 $43.8 ($0.7)
Change in Net Positfon $3.4 $3.3 $3.7 $0.9 $7.1 $4.2 $2.9
Net Positfon, January 1 $48.4 $49.5 $37.1 $36.5 $85.5 $86.0
Restatements - (4.4) - (0.3) - (4.7)
Net Positfon, January 1 Restated $48.4 $45.1 $37.1 $36.2 $85.5 $81.3
Net Positfon, December 31 $51.8 $48.4 $40.8 $37.1 $92.6 $85.5
(in millions)
Statement of Actfvitfes
General
Government
13.5%
Public Safety
43.9%Public Works
13.0%
Culture and
Recreation
4.2%
Waterworks
System
16.5%
Sports Core
8.6%
Interest and
Fiscal Charges
0.5%
Expenses by Function
Charges for
Services
40.8%
Grants and
Contributions
0.6%
Sales and Local
Use Taxes
36.9%
Utility Taxes
12.5%
Other Taxes
6.2%
Investment
Income
2.6%
Miscellaneous
0.4%
Revenues by Source
Explanatfon, Analysis, and Discussion of Financial Statements
2019 Actual 2018 Actual Change
Sales Tax $18,522,492 $18,608,900 ($86,408)
Sales tax covers all the various taxes imposed under the Retailers Occupatfon tax, the service
Occupatfon tax, and the Use Tax Act. The Village currently receives 1.50% of eligible sales.
Utflity/Telecom Tax 6,286,242 6,137,283 148,959
The Village taxes telecommunicatfons, natural gas, and electricity. The Village receives 5% tax
from NICOR and a 10-tfered formula based on kilowatts used from Commonwealth Edison.
Taxes are also imposed on interstate or intrastate telecommunicatfons originatfng or received in
the Village by a person at a rate of 6% of gross charges.
Hotel/Motel Tax 1,292,756 1,340,495 (47,739)
3% tax imposed upon the use and privilege of rentfng rooms in a hotel or motel within the Vil-
lage.
Intergovernmental 1,171,442 1,018,888 152,554
Amounts received from other governments for support of partfcular functfons or for general
financial support. Includes State income tax and personal property replacement tax.
Charges for Services 20,512,125 19,191,729 1,320,396
Charges imposed for providing services. Total charges for services is comprised of: Water
$10,036,858, Sports Core $3,328,488, Golf Surcharge $111,082, and Governmental (licenses,
permits, fees) $7,035,697.
Grants 286,191 227,588 58,603
Funds received from federal and state agencies to assist in offsetting expenditures related to
various programs.
All Other Revenue Sources 2,156,257 1,513,854 642,403
Consists of property tax, other tax, gain on disposal of capital assets, investment income, and
other revenue.
$50,227,505 $48,038,737 $2,188,768
Revenue Overview
8
See page 10 for explanatfons on the major changes from 2018.
$-
$10
$20
$30
$40
$50
$60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MILLIONSTotal Revenues -Last 10 Years
Explanatfon, Analysis, and Discussion of Financial Statements
2019 Actual 2018 Actual Change
General Government $5,776,984 $5,562,375 $214,609
Includes various administratfve services of the Village (Legislatfve and General Management,
Human Resources, Finance, Informatfon Systems, and Community Development).
Public Safety 18,933,249 18,936,493 (3,244)
Includes expenses associated with providing police and fire protectfon services to the
Village.
Public Works 5,536,797 5,025,121 511,676
Includes Public Works administratfon, buildings and grounds, forestry, snow removal, and
streets services.
Culture and Recreatfon 1,813,968 1,690,190 123,778
Includes Library services and Hotel/Motel expenses to increase overnight stays in hotels with-
in the Village.
Waterworks System 7,145,987 8,819,043 (1,673,056)
Includes the costs associated with providing water services to the Village.
Sports Core 3,704,979 3,536,941 168,038
Includes all Sports Core operatfons (Bath & Tennis Club, Polo, Taste of Oak Brook, Golf Club).
Interest 245,894 255,253 (9,359)
Includes interest costs on all Village debt.
$43,157,858 $43,825,416 ($667,558)
Note - The increase in total expenses in 2015 relates to the recording of $10.4 million in pension expense related to the
implementatfon of GASB Statements No. 68 and 71. Fiscal year 2015 was the first year the expense was recorded on the Village ’s
financial statements.
See page 10 for explanatfons on the major changes from 2017.
Expense Overview
9
$-
$10
$20
$30
$40
$50
$60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MILLIONSTotal Expenses -Last 10 Years
Key financial highlights of fiscal year 2019 include:
Charges for services revenue increased $1.4 million, or 7.3%, from 2018 due increases in building permit
fees from large economic development permits issued and a 5% water rate increase.
Sales and use tax revenue decreased $0.1 million, or 0.5%, from 2018 due to various business openings and
closings throughout the year as a result of redevelopment of retail space.
Utflity tax revenue increased $0.2 million, or 3.3%, from 2018 due to general inflatfonary gains. The Village
rates charged on gas, electric, and telecommunicatfons remained unchanged in 2019.
Investment income increased $0.6 million, or 85.7%, from 2018 due to rising interest rates and more
available cash on hand to invest. The weighted average yield of the Village’s long-term investment
portiolio increased from 2.27% in 2018 to 2.35% in 2019. The Village also saw favorable increases in the
Illinois Funds daily investment rate.
General government expenses increased $0.2 million, or 3.6%, from 2018. This is primarily due to normal
salary and benefits related increases.
Public Safety expenses were flat with 2018 at $18.9 million. The Public Safety functfon saw an increase in
contract ambulance services due to the additfon of paramedics, an increase in pension contributfons, and
normal personnel related increases. This was offset by a reductfon in actuarial pension expense due to
favorable market conditfons in 2019.
Public works expenses increased $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 recreatfon expenses increased $0.1 million, or 5.9%, from 2018. The increase is due to normal
personnel related increases, increases in supplies, and increases in advertfsing costs for the hotel district.
Waterworks System expenses decreased $1.7 million, or 19.3%, from 2018. The decrease is due to the
Village-wide water meter replacement project that occurred in 2018.
Sports Core expenses increased $0.2 million, or 5.7%, from 2018. The increase is due to normal increases
in personnel related costs and golf course supplies.
Explanatfon, Analysis, and Discussion of Financial Statements
Overview of Financial Positfon and Results of Actfvitfes
10
Explanatfon, Analysis, and Discussion of Financial Statements 11
General Fund
The General Fund accounts for the Village’s primary operatfng actfvitfes. Services funded by the General Fund include
police, fire, library, public works, economic development, and general administratfon. The General Fund accounts for
all financial resources except those accounted for in another fund.
Total revenues increased $1.2 million, or 4.7%, from 2018. Revenue levels across all major sources were stronger in
2019 than antfcipated, coming in at $2.5 million over budget. Intergovernmental revenue (which includes sales tax,
income tax, use tax, and more) was relatfvely flat in 2019, coming in at $0.1 million higher than last year, but $0.5
million over budget. Utflity Taxes (electric, gas, and cable) were strong in 2019 accountfng for an increase of $0.1
million over 2018 and $0.4 million over budget. Licenses & Permits revenue was $0.5 million higher than 2018 and
$1.3 million over budget. This was due to the issuance of a few large redevelopment building permits during 2019.
Total expenditures decreased $1.6 million, or 6.4%, from 2018 and were $0.3 million under budget. The decrease in
expenditures is primarily due to the Police Department expansion and renovatfon capital project in 2018. This was
offset by normal increases in personnel related costs, such as salaries, pension contributfons, and health insurance
payments.
Fund balance increased $3.3 million in 2019 to a total of $25.1 million. Of this amount, nearly all ($25.0 million) is
unassigned and can be used for any purpose. The General Fund has seen significant increases in fund balances over
the past few years, increasing from $17.3 million in 2015 to $25.1 million in 2019.
Original Final Variance with 2018
Budget Budget Actual Final Budget Actual
Revenues
Intergovernmental $13,566,250 $13,566,250 $14,017,644 $451,394 $13,900,471
Utflity Taxes 5,857,500 5,857,500 6,286,242 428,742 6,137,283
Licenses & 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
Other 900,300 900,300 1,325,850 425,550 1,119,962
Total Revenues $24,180,500 $24,180,500 $26,706,760 $2,526,260 $25,498,260
Expenditures
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 Recreatfon 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
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 $-
Change in Fund Balance $3,300,441 $698,653
Fund Balance, January 1 $21,753,327 $21,054,674
Fund Balance, December 31 $25,053,768 $21,753,327
Village Sales Tax 12
Sales Tax revenue is largest revenue source in the Village’s General Fund and Infrastructure Fund. The amount of sales
tax generated by Village businesses allows the Village to operate without a real estate tax levy. The Village does
receive a small amount of real estate tax revenue for the Promenade TIF district, but this money is used exclusively to
repay TIF bondholders.
The sales tax rate charged within the Village is 7.50%. Of this rate, the
Village directly receives 1.50%. The 1.50% is further broken down into two
portfons: 1.00% is the local portfon that goes into the General Fund to fund
general operatfons (public safety, public works, library, development
services, and administratfon) and 0.50% is the non-home rule portfon that
goes into the Infrastructure Fund to fund roadway improvements.
Also, the Promenade TIF Fund receives a portfon of sales tax revenue to be
used to repay bondholders in accordance with the redevelopment
agreement. Of all the sales tax and non-home rule sales tax collected from
stores within the Promenade shopping center, 20% of this amount is
recorded in the Promenade TIF Fund.
The General Fund’s portfon of sales tax revenue in fiscal year 2019 was $12,516,616, which is a decrease of $69,704, or
0.6%, over 2019. The Infrastructure Fund’s portfon of non-home rule sales tax in fiscal year 2019 was $5,642,898,
which is a decrease of $48,638, or 0.9%, over 2019.
Of the Village’s total sales tax revenue, nearly 50% comes from businesses located within the Oakbrook Center mall.
Oakbrook Center contfnues to be one of the areas most popular malls and offers numerous retail, dining, and
entertainment optfons. The Village’s top 10 sales tax generators in 2019 were:
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12
$13
$14
MILLIONSSales Tax Collections
Last 10 Years
1% Sales Tax 0.50% Non-Home Rule Sales Tax
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5
General Merchandise
Food
Apparel
Drinking and Eating Places
Furniture & H.H. & Radio
Lumber, Bldg, Hardware
Automotive & Filling Stations
Drugs & Misc. Retail
Agriculture & All Others
Manufacturers
MILLIONS
Sales and Non-Home Rule Sales Tax Collections
By Major Category
State of Illinois,
5.00%
Village of Oak
Brook, 1.50%
Regional
Transportation
Authority, 0.75%
DuPage County,
0.25%
Sales Tax Rate Allocation
These taxpayers accounted for approximately 46% of the
Village’s total sales tax revenue in 2019. The Village
contfnues to work on attractfng new businesses to
strengthen its sales tax base and contfnue operatfons
without a real estate tax levy. The Village maintains a
diverse tax base with five industries generatfng over $2.0
million to the Village annually, led by apparel sales from
the strong retail base.
Nieman Marcus
Nordstrom
Nordstrom Rack
Peloton Interactfve
Tiffany & Co.
Apple Computers, Inc.
Costco
Gibsons Bar & Steakhouse
Louis Vuitton
Macy’s
Key Statfstfcs 13
*Individual property tax rates may vary depending on school district boundaries.
2015 2016 2017 2018 2019
General
Debt per capita $534 $480 $422 $401 $423
DuPage County unemployment rate 4.6% 4.4% 3.9% 2.9% 2.2%
Property tax rate* 3.9263 3.7945 3.5786 3.4555 3.5125
Estfmated retail sales $1,235,726,800 $1,310,311,500 $1,240,438,500 $1,258,799,200 $1,258,194,000
Total sales tax receipts—cash basis $18,043,872 $19,019,578 $18,253,755 $17,946,614 $18,268,091
Police
Physical arrests 208 191 212 181 178
Parking violatfons 299 901 443 404 317
Traffic violatfons 2,082 1,465 1,495 1,398 1,596
Fire
EMS incidents 1,329 1,432 1,380 1,408 1,468
Fire incidents 600 630 672 722 693
Communicatfons Center (DUCOMM)
Police calls dispatched 19,442 23,924 21,656 23,716 23,200
Fire/EMS calls dispatched 2,246 2,407 2,493 2,616 2,711
Library
Total circulatfon 91,205 112,423 105,129 120,413 140,201
Total holdings 102,441 97,201 94,353 91,789 88,520
Community Development
Building permits issued 850 841 943 908 920
Estfmated constructfon value $174,948,935 $99,520,330 $176,470,285 $135,704,908 $167,423,370
Inspectfons 2,790 2,999 2,963 2,607 2,510
Sports Core
B&T recreatfon memberships 307 317 294 307 265
Social memberships 81 77 - - -
Total events 71 75 65 74 88
Golf memberships 142 145 151 158 150
Total golf rounds 34,019 39,324 39,863 35,256 36,253