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CAFR (Year Ended December 31, 2020) VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2020 Prepared by Finance Department Jason Paprocki Finance Director VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION Principal Officials ............................................................................................................. i Organization Chart ............................................................................................................ ii Certificate of Achievement for Excellence in Financial Reporting .................................. iii Letter of Transmittal ......................................................................................................... iv-ix FINANCIAL SECTION INDEPENDENT AUDITOR’S REPORT ........................................................................ 1-3 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management’s Discussion and Analysis ..................................................................MD&A 1-14 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ................................................................................... 4-5 Statement of Activities ....................................................................................... 6-7 Fund Financial Statements Governmental Funds Balance Sheet ................................................................................................. 8-9 Reconciliation of Fund Balances of Governmental Funds to the Governmental Activities in the Statement of Net Position .................... 10 Statement of Revenues, Expenditures, and Changes in Fund Balances ........ 11 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental Activities in the Statement of Activities ...................................................... 12 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) Fund Financial Statements (Continued) Proprietary Funds Statement of Net Position .............................................................................. 13-14 Statement of Revenues, Expenses, and Changes in Net Position .................. 15 Statement of Cash Flows ............................................................................... 16-17 Fiduciary Funds Statement of Fiduciary Net Position ................................................................. 18 Statement of Changes in Fiduciary Net Position ............................................. 19 Notes to Financial Statements ................................................................................. 20-66 Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund ...................................................................................................... 67 Schedule of Employer Contributions Illinois Municipal Retirement Fund ................................................................... 68 Police Pension Fund ........................................................................................... 69 Firefighters’ Pension Fund ................................................................................. 70 Schedule of Changes in the Employer’s Net Pension Liability and Related Ratios Illinois Municipal Retirement Fund ................................................................... 71-72 Police Pension Fund ........................................................................................... 73-74 Firefighters’ Pension Fund ................................................................................. 75-76 Schedule of Changes in the Employer’s Total OPEB Liability and Related Ratios Other Postemployment Benefits Plan ................................................................. 77 Schedule of Investment Returns Police Pension Fund ........................................................................................... 78 Firefighters’ Pension Fund ................................................................................. 79 Notes to Required Supplementary Information ...................................................... 80 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund Schedule of Revenues - Budget and Actual ....................................................... 81 Schedule of Expenditures - Budget and Actual .................................................. 82-87 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Infrastructure Fund ............................................................................................. 88-89 Promenade TIF Fund .......................................................................................... 90 NONMAJOR GOVERNMENTAL FUNDS Combining Balance Sheet ....................................................................................... 91 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .............................................................................. 92 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Motor Fuel Tax Fund .......................................................................................... 93 Hotel/Motel Tax Fund ........................................................................................ 94 MAJOR ENTERPRISE FUNDS Waterworks System Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ............................................................................................ 95 Schedule of Detailed Expenses - Budget and Actual - Budgetary Basis ........... 96 Sports Core Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual ............................................................................................ 97 Schedule of Detailed Revenues - Budget and Actual ......................................... 98 Schedule of Detailed Expenses - Budget and Actual - Budgetary Basis ........... 99-101 NONMAJOR ENTERPRISE FUNDS Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual - Budgetary Basis Golf Surcharge Fund .......................................................................................... 102 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) INTERNAL SERVICE FUNDS Combining Statement of Net Position ..................................................................... 103-104 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................................................................ 105 Combining Statement of Cash Flows ...................................................................... 106-107 Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual Self Insurance Fund ............................................................................................ 108 Garage Fund ....................................................................................................... 109 Capital Replacement Fund - Budgetary Basis .................................................... 110 FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Net Position ................................................................ 111 Combining Statement of Changes in Plan Net Position ..................................... 112 SUPPLEMENTAL DATA Consolidated Year End Financial Report ................................................................ 113 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ........................... 114-115 STATISTICAL SECTION Financial Trends Net Position by Component ......................................................................................... 116-117 Change in Net Position ................................................................................................. 118-121 Fund Balances of Governmental Funds ....................................................................... 122-123 Changes in Fund Balances of Governmental Funds .................................................... 124-125 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) STATISTICAL SECTION (Continued) Revenue Capacity Assessed Value and Actual Value of Taxable Property .............................................. 126 Direct and Overlapping Property Tax Rates ................................................................ 127 Principal Property Taxpayers ....................................................................................... 128 Direct and Overlapping Sales Tax Rates ..................................................................... 129 Retail Sales Volume - Top 25 Illinois Communities ................................................... 130 Sales Tax Receipts - Cash Basis ................................................................................... 131 State Sales Tax Receipts by Month - Cash Basis ......................................................... 132 Non-Home Rule Sales Tax Receipts by Month - Cash Basis ...................................... 133 Sales Tax by Category .................................................................................................. 134 Non-Home Rule Sales Tax by Category ...................................................................... 135 Debt Capacity Ratios of Outstanding Debt by Type ............................................................................ 136 Direct and Overlapping Governmental Activities Debt ............................................... 137 Legal Debt Margin Information ................................................................................... 138 Demographic and Economic Information Demographic and Economic Information .................................................................... 139 Principal Employers ..................................................................................................... 140 Operating Information Full-Time Equivalent Employees................................................................................. 141-144 Operating Indicators by Function ................................................................................. 145 Capital Asset Statistics by Function ............................................................................. 146 INTRODUCTORY SECTION - i - VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2020 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 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 2020Village Attorney(Labor) Information Technology Services Director Human Resources Director/Deputy Village Clerk- ii - Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Oak Brook Illinois For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 Executive Director/CEO - iii - - iv - 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 11, 2021 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, 2020. 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 Sikich 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. - v - 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, 2020, 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. Daily 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 Brook is comprised of 38,854 private sector jobs (2020, IDES, Where Workers Work); of these, 17.6% are in the Management of Companies and Enterprises field, 13.9% are in the - vi - Health Care and Social Assistance field, and 12.8% are in the Administrative and Support field, Waste Management, and Remedial Services 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. 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 available the Village receives. Sales tax revenue decreased just over $1.0 million, or 8.1%, compared to last year’s revenue. The decrease was primarily due to business closures and restrictions as a result of the COVID-19 pandemic. The Village has seen positive trends in sales tax revenues in recent months, but continues to be conservative when projecting amounts for 2021 and beyond. We will continue to monitor revenue trends and budget expenditures accordingly. Oak Brook’s estimated construction value indicates a positive trend over the last several years, with the high coming in 2020 at $179.1 million. Over the last five years, estimated construction value has averaged $151.6 million annually. The Village has seen many large development projects in recent years, such as the Senior Lifestyle, Lifetime Fitness, Restoration Hardware, and Hines Oak Brook Commons. Total building permits issued during 2020 came in at 830, which is a decrease of 90 compared to 2019 permits. Although there was a decline in the number of permits issued in 2020, permit revenue remained even with 2019 totals at $3.4 million. Overall, development has been strong over the past few years and is expected to remain strong through 2021 and beyond. The Village anticipates a number of large projects in the near future, such as future phases of the Hines Oak Brook Commons project, redevelopment of the McDonald’s campus, and redevelopment of the Macy’s Furniture site. New Commercial Development There have been many changes and improvements in Oakbrook Center. The Former Lord & Taylor space is being redeveloped into numerous spaces, including Puttshack, Abercrombie and Fitch, Tempur-Pedic, and Arhaus Furniture. A new Lifetime Fitness building has recently been completed and opened in early 2021. Construction began on a brand new Restoration Hardware building on an outer lot of Oakbrook Center. Construction began in late 2020 and is expected to be completed by holiday season 2021. Senior Lifestyle, a $79 million 200-unit luxury apartment complex for senior citizens, completed construction and officially opened in early 2021. The Former McDonald’s properties have been purchased and plans are underway to redevelop these areas. The former headquarters was demolished in 2020 and will make way for the Oak Brook Commons project, which includes retail, restaurants, office space, and apartments. Construction is currently underway for the first phases of the Oak Brook Commons development, with additional phases expected to begin in 2021. Planning for the McDonald’s campus is underway and will likely to be presented to the Village Board in the future. - vii - The old Macy’s Furniture building site has been sold and is currently in the process of being redeveloped into multiple retail and restaurant pads. Construction is expected to begin in 2021. 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 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. 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 despite delaying certain projects for budgetary concerns. - viii - During 2020, the Village completed numerous water main replacement projects, including the Brook Forest subdivision phase 2, Windsor Drive, Enterprise Drive, and Luthin Road. Most of these projects were started in 2019 and finished in 2020. Design and construction on the Windsor Drive widening project, the York and Harger intersection reconfiguration, and the Harger Road bike path project continued in 2020. These projects are expected to be completed in 2021. Construction on the Salt Storage facility was completed during 2020. This facility will allow the Village to purchase and store larger quantities of salt and securely store equipment and supplies. There were also many improvements made at the Sports Core this year. The Golf Club lounge and café area was renovated to enhance food and beverage service. A new roof was installed at the Bath and Tennis Clubhouse. Work continued on the Bath and Tennis pool renovation project and is expected to be completed in early 2021. The 2021 Budget includes a number of major capital projects, including: continuation of the Windsor Drive widening project, continuation of the York Road/Harger Road intersection reconstruction, continuation of the Harger Road bike path construction, phase three of the Brook Forest water main replacement project, and the start of the Sports Core OSLAD grant open space improvements project. For a full listing of planned capital improvements, you can review the 2021-2025 Five-Year Plan at: http://www.oak- brook.org/304/Financial-Documents. Currently, there is some uncertainty on the planned future capital improvements. As the Village assesses the impact of the COVID-19 pandemic and revenue recovery, a number of these projects are on hold. These projects may still occur in 2021, be rescheduled to a future fiscal year, or be 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, 2019. 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 42 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. - ix - In addition, the Village of Oak Brook received the GFOA’s Distinguished Budget Presentation Award for its annual budget for the 2020 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 eighth 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 FINANCIAL SECTION 1415 West Diehl Road, Suite 400 Naperville, IL 60563 630.566.8400 INDEPENDENT AUDITOR’S REPORT The Honorable President Members of the Board of Trustees Village of Oak Brook, Illinois 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 (the Village), as of and for the year ended December 31, 2020, and the related notes to financial statements, which collectively comprise the Village’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 stat ements 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. Auditor’s 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic 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 auditor ’s 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 conside rs internal control relevant to the Village’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’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 th e overall presentation of the financial statements. - 1 - We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2020, and the respective changes in financial positio n and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information l isted 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. We have applied certain limited procedures to the required supplementary information in accordance with auditing standa rds 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directl y to the underlying accounting and other records used to prepare the basic financial statements. Such 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 auditin g standards generally accepted in the United States of America. In our opinion, the 2020 combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The supplementary information for the year ended December 31, 2019 presented on pages 80 to 89, 92, 94 to 101, and 107 to 109, was subjected to the auditing procedures applied in the audit of the basic financial statements by other auditors, whose report on such information stated that it was fairly stated in all material respects in relation to the basic financial statements as a whole. - 2 - The introductory and statistical sections have 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 them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated May 11, 2021, on our consideration of the Village’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control over financial reporting and compliance. Naperville, Illinois May 11, 2021 - 3 - GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (See independent auditors’ report) MD&A 1 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020 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, 2020. 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 4). 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, 2020, the Village’s total (combined governmental and business-type) assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $100.4 million (referred to as net position). • The Village’s total net position increased by $7.8 million, or 8.4%, compared to the prior year. • The governmental activities reported total net position of $56.3 million, which is an increase of $4.5 million, or 8.7%, in comparison to the prior year balance. The unrestricted portion of the net position is a $25.6 million deficit, which is attributed to the Village’s unfunded pension and OPEB liabilities. • The business-type activities reported total net position of $44.1 million, which is an increase of $3.3 million, or 8.1%, in comparison to the prior year balance. The unrestricted portion of the net position is $6.6 million. • The Village had a total (governmental and business-type activities combined) unrestricted net position deficit of $19.0 million at December 31, 2020, which is an improvement of $5.0 million from last year. • Total revenues decreased $4.8 million, or 9.6%, in comparison to the prior year. Of the total decrease, governmental activities revenues decreased $3.6 million, or 10.1%, and business-type activities revenues decreased $1.2 million, or 8.3%. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 2 • Total expenses decreased $5.5 million, or 12.8%, in comparison to the prior year. Of the total decrease, governmental activities expenses decreased $4.7 million, or 14.6%, and business-type activities expenses decreased $0.8 million, or 7.4%. 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 4-7) 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 designe d 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. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 3 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. 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, Infrastructure Fund, and Promenade TIF Fund, all of which are considered to be “major” funds. Data from the other three 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 8 through 12 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 14 through 17 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. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 4 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. The basic fiduciary fund financial statements can be found on pages 18 and 19 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 20 through 65 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 66 through 79 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 80 through 112 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 compared to December 31, 2019. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 5 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. Statement of Net Position The following table reflects a Summary of Net Position for fiscal years 2020 and 2019. 2020 2019 2020 2019 2020 2019 Assets Current and Other Assets 47.7$ 46.7$ 9.1$ 9.2$ 56.8$ 55.9$ Capital Assets 69.8 68.0 37.4 34.0 107.2 102.0 Total Assets 117.5$ 114.7$ 46.5$ 43.2$ 164.0$ 157.9$ Deferred Outflows of Resources 3.4$ 5.4$ 0.7$ 1.2$ 4.1$ 6.6$ Liabilities Long-Term Liabilities 51.0$ 57.6$ 1.5$ 2.2$ 52.5$ 59.8$ Other Liabilities 4.3 5.2 1.1 1.2 5.4 6.4 Total Liabilities 55.3$ 62.8$ 2.6$ 3.4$ 57.9$ 66.2$ Deferred Inflows of Resources 9.3$ 5.5$ 0.5$ 0.2$ 9.8$ 5.7$ NET POSITION Net Investment in Capital Assets 69.2$ 67.6$ 37.5$ 34.0$ 106.7$ 101.6$ Restricted 12.7 15.0 - - 12.7 15.0 Unrestricted (25.6) (30.8) 6.6 6.8 (19.0) (24.0) Total Net Position 56.3$ 51.8$ 44.1$ 40.8$ 100.4$ 92.6$ Activities Business-Type Activities Total Primary Government Table 1 Statement of Net Position Summary As of December 31, 2020 and 2019 (in millions) Governmental Cash and investments, included in the current and other assets line, decreased $0.1 million, or 0.1% compared to the prior year. Total cash and investments was $45.4 million at December 31, 2020, with $38.1 million in Governmental Activities and $7.3 million in Business-Type Activities. The net investment in capital assets is the largest portion of net position. This represents capital assets (land, buildings, improvements, equipment, infrastructure and construction in progress), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The Village uses these capital assets to provide services to its citizens and these assets are not available for future spending. For more detailed information, see the Statement of Net Position on pages 4 through 5. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 6 Summary of Changes in Net Position The following table summarizes the revenues and expenses found on the Statement of Activities for 2020 and 2019: 2020 2019 2020 2019 2020 2019 Revenues Program Revenues Charges for Services 5.1$ 7.0$ 12.9$ 13.5$ 18.0$ 20.5$ Grants and Contributions 0.9 0.3 - - 0.9 0.3 General Revenues Sales and Local Use Taxes 16.8 18.5 - - 16.8 18.5 Utility Taxes 5.8 6.3 - - 5.8 6.3 Other Taxes 2.2 3.1 - - 2.2 3.1 Investment Income 0.6 1.1 0.1 0.2 0.7 1.3 Miscellaneous 1.1 0.1 (0.1) 0.1 1.0 0.2 Transfers (0.4) (0.7) 0.4 0.7 - - Total Revenues 32.1$ 35.7$ 13.3$ 14.5$ 45.4$ 50.2$ Expenses General Government 4.5$ 5.8$ -$ -$ 4.5$ 5.8$ Public Safety 15.5 18.9 - - 15.5 18.9 Public Works 5.1 5.6 - - 5.1 5.6 Culture and Recreation 2.3 1.8 - - 2.3 1.8 Waterworks System - - 6.8 7.1 6.8 7.1 Sports Core - - 3.2 3.7 3.2 3.7 Interest and Fiscal Charges 0.2 0.2 - - 0.2 0.2 Total Expenses 27.6$ 32.3$ 10.0$ 10.8$ 37.6$ 43.1$ Change in Net Position 4.5$ 3.4$ 3.3$ 3.7$ 7.8$ 7.1$ Net Position - Beginning of Year 51.8$ 48.4$ 40.8$ 37.1$ 92.6$ 85.5$ Net Position - End of Year 56.3$ 51.8$ 44.1$ 40.8$ 100.4$ 92.6$ Activities Activities Government Table 2 Statement of Activities Summary For the Fiscal Year Ended December 31, 2020 and 2019 (in millions) Governmental Business-Type Total Primary As highlighted earlier, total revenues decreased $4.8 million, or 9.6%, compared to the prior year. The decrease is primarily related to the COVID-19 pandemic. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 7 The Governor’s stay-at-home order had a significant impact on a number of major revenue sources, including sales tax, utility tax, hotel tax, water sales, and ambulance fees. The pandemic also had a negative impact on the Village’s investment earnings. The Village took steps to reduce expenses in 2020 related to the anticipated shortfall in revenues from the COVID-19 pandemic. Total expenses decreased $5.5 million, or 12.8%, compared to the prior year, which is due to a number of cost saving efforts, such as staff furlough days, part- time employee layoffs, reduced public safety pension funding, and delays in capital projects. Governmental Activities Revenues – Governmental Activities For the fiscal year ended December 31, 2020, Governmental Activities revenues totaled $32.1 million, a decrease of $3.6 million from 2019. Revenue from sales and use taxes, which continues to be the Village’s largest revenue source, amounted to $16.8 million and were 51.7% of total Governmental Activities revenue. Sales and use tax revenue decreased $1.7 million, or 9.2%, from 2019 due to business closures during the COVID-19 stay-at-home order. Utility taxes, which include the taxes imposed on electric, natural gas, and telecommunications services, were $5.8 million and accounted for 17.8% of total revenue. Utility tax revenue decreased $0.5 million, or 7.9%, from 2019 due overall lower usage during the pandemic. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 8 The “other taxes” classification includes a number of different revenue sources including income taxes, personal property replacement taxes, and hotel taxes. For 2020, these revenues were $2.2 million, which accounts for 6.8% of total Governmental Activities revenues. Other taxes decreased $0.9 million, or 29.0%, from 2019 primarily from a decrease in hotel tax revenue related to reduced travel during the pandemic. The “charges for services” classification includes number of different licenses, permits, and fees. For 2020, these revenues totaled $5.1 million, or 15.7% of total Governmental Activities revenues. Charges for services decreased $1.9 million, or 27.1%, from 2019 due to a decline in billing for various contracted services such as ambulance runs and police auxiliary. This was the result in lower usage due to COVID-19 restrictions. Expenses by Function – Governmental Activities Expenses for Governmental Activities totaled $27.6 million in 2020, a decrease of $4.7 million, or 14.6%, from 2019. Changes by individual function include: • General government expenses were $4.5 million, a decrease of $1.3 million, or 22.4%, from 2019. This is primarily due to salary and benefits savings from furloughs and part- time layoffs, a delay in non-capital building improvements, and improvements in the IMRF net pension liability due to favorable market conditions in recent years. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 9 • Public Safety expenses were $15.5 million, a decrease of $3.4 million, or 18.0%, from 2019. This is attributed to lower contracted ambulance services due to the reduction of paramedics, a decrease in annual pension contributions, normal personnel related decreases due to retirements and staff turnover, and improvements in net pension liability due to favorable market conditions in recent years. • Public works expenses were $5.1 million, a decrease of $0.5 million, or 8.9%, from 2019. The decrease is due to a reduction in street resurfacing projects compared to last year because of the ongoing pandemic. • Culture and recreation expenses were $2.3 million, an increase of $0.5 million, or 27.8%, from 2019. This is primarily due to a loan made to the Oak Brook Park District and hotel district beautification projects. Business-type Activities The business-type activities net position increased $3.3 million, or 8.1%, compared to the prior year. For business-type activities, revenues for the waterworks system were $9.9 million, which decreased by $0.1 million, or 1.0%, compared to the prior year. Water user rates were increased 7.0% in 2020, however, less water was billed due to pandemic related business closures. In addition, the Village received a large water connection fee in 2019, with little activity in 2020. Program revenues for Sports Core were $2.9 million, which decreased by $0.4 million, or 12.1%, compared to the prior year. The decrease primarily relates to outsourcing the swimming, tennis, and soccer rentals to the Oak Brook Park District in 2020. Further, bath and tennis clubhouse rentals were minimal in 2020 due to COVID-19 restrictions on events and gatherings. For business-type activities, expenses for the waterworks system were $6.8 million, a decrease of $0.3 million, or 4.2%, million from 2019. The decrease is due to less water being purchased from DuPage Water Commission in 2020. Sports Core expenses were $3.2 million, a decrease of $0.5 million, or 13.5%, from 2019. The decrease is due to the outsourcing of swimming, tennis, and soccer operations to the Park District. Program Program Revenues Expenses Waterworks Sytem 9,886,349$ 6,805,026$ Sports Core 2,919,752 3,204,036 Golf Surcharge 124,145 - Total 12,930,246$ 10,009,062$ Revenues and Expenses - Business-Type Activites For the Fiscal Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 10 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, 2020, the governmental funds (as presented on the balance sheet on pages 8 through 9) had a combined fund balance of $40.8 million, which is an increase of $0.7 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 $3.1 million from 2019 to 2020, to a total of $28.2 million. General Fund revenues came in $0.4 million under budget in 2020, while expenditures were $2.5 million under the final amended budget. Table 3 below details the General Fund major revenue and expenditure line items compared to original and amended budget. Original Amended Budget Budget Actual Revenues Intergovernmental 13,869,400$ 13,869,400$ 13,510,432$ Utility Taxes 6,125,000 6,125,000 5,794,806 Licenses & Permits 2,990,190 2,990,190 3,534,650 Charges for Services 1,461,600 1,461,600 1,177,838 Other 1,056,195 1,056,195 1,035,854 Total Revenues 25,502,385$ 25,502,385$ 25,053,580$ Expenditures General Government 4,302,715$ 4,302,715$ 3,621,996$ Public Safety 17,792,275 17,792,275 16,244,626 Public Works 893,055 893,055 830,138 Culture and Recreation 994,410 994,410 824,878 Total Expenditures 23,982,455$ 23,982,455$ 21,521,638$ Other Financing Sources (Uses) Transfers Out (923,000)$ (923,000)$ (383,561)$ Total Other Financing Sources (Uses)(923,000)$ (923,000)$ (383,561)$ Change in Fund Balance 596,930$ 596,930$ 3,148,381$ Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 11 General Fund intergovernmental revenues were under budget due a number of sources coming in lower than projections. Within the intergovernmental category, sales tax revenue receipts were $1.0 million lower than budget projections; however, the Village received approximately $0.4 million in CARES Act grant funding that helped offset this. Utility taxes were under budget by $0.3 million due to a general slowdown in usage during the stay-at-home order. Licenses and permits revenue was $0.5 million over budget projections due to strong building permit revenue from commercial development. Charges for Services revenue was $0.3 million under budget projections due to a decrease in ambulance fees during the months of the stay-at-home order. General Fund expenditures continue to be conservative in annual spending. Actual expenditures fell short of both the original budget and amended budget in 2020 by nearly $2.5 million. The Village saw savings due to staff furlough days, part-time employee layoffs, reduced public safety pension funding, and delays in capital projects. The fund balance in the Infrastructure Fund decreased $1.1 million from 2019 to 2020, to a total of $7.0 million. Revenues came in $0.7 million under budget in 2020, while expenditures were $6.5 million under the final amended budget. The Village had planned for a number of major street improvement and building projects to kick off in 2020, but activity was lower than projected due to projects being put on hold during the pandemic. Many of these projects will carry into 2021 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 decreased $36,894 from 2019 to 2020, to a total of $267,300. 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 biannually 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 $2,500 in all other accounts. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 12 Capital Assets The following table reflects the Village’s capital asset balances as of December 31, 2020 and 2019. 2020 2019 2020 2019 2020 2019 Land and Land Right of Way 33.2$ 33.2$ 8.3$ 8.3$ 41.5$ 41.5$ Construction in Progress 2.4 4.3 0.8 2.8 3.2 7.1 Buildings and Land Improvements 27.5 25.9 10.6 10.2 38.1 36.1 Machinery, Vehicles, and Equipment 10.2 10.8 6.1 6.1 16.3 16.9 Infrastructure 41.9 37.8 33.9 28.3 75.8 66.1 Total 115.2$ 112.0$ 59.7$ 55.7$ 174.9$ 167.7$ Accumulated Depreciation (45.4)$ (44.0)$ (22.3)$ (21.7)$ (67.7)$ (65.7)$ Total Capital Assets 69.8$ 68.0$ 37.4$ 34.0$ 107.2$ 102.0$ Activities Business-Type Activities Total Primary Government Table 4 Capital Assets As of December 31, 2020 and 2019 (in millions) Governmental 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 $106.7 million, an increase of $5.1 million from 2019 (see Note II.C. in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2020 were: • For Governmental Activities, major capital projects include: salt storage facility construction, street reconstruction and projects, and various vehicle replacements. • For Business-Type Activities, capital spending include: Various water main replacements, Bath & Tennis Club pool renovation, Bath & Tennis Club roof replacement, Golf club house renovation, and various equipment replacements. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 13 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 $138,083,532 based on January 1, 2020 EAV of $1,600,968,484. As of December 31, 2020, the Village had no debt outstanding applicable to the legal limit (see Note II.E. in the Notes to the Financial Statements for details of each issue). Table 5 below summarizes the Village’s outstanding long-term debt: 2020 2019 2020 2019 2020 2019 Note Payable 2.6$ 2.9$ -$ -$ 2.6$ 2.9$ Capital Lease Payable 0.5 0.4 - - 0.5 0.4 Total Long-Term Debt 3.1$ 3.3$ -$ -$ 3.1$ 3.3$ Activities Activities Government Table 5 Long-Term Debt As of December 31, 2020 and 2019 (in millions) Governmental Business-Type Total Primary 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. In 2018, the Village entered into an agreement to lease certain administration, public works, and public safety vehicles. Four (4) vehicles were received and placed into service during 2020, which brings the total number of leased vehicles to nineteen (19). These leases run for three and five years, depending on vehicle type and department function. 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 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 2020, unassigned fund balance in the General Fund increased from $25.0 million to $28.1 million primarily due to cost saving measures the Village undertook in response to the COVID-19 pandemic. Total 2020 General Fund revenues decreased $1.7 million from 2019; however, expenditures also decreased $1.7 million from 2019. The Village strives to maintain a strong reserve balance due to the volatility of its major revenue sources. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) MD&A 14 The 2021 Budget continues to be a conservative financial plan while providing excellent services to its residents and business community. The total 2021 budgeted revenues are $52.4 million, a decrease of $4.0 million, or 7.1%, from the 2020 Budget (excludes Pension Trust and Foreign Fire Tax Funds). This is primarily due to the COVID-19 pandemic and a conservative approach to economic recovery in 2021. The total spending in the 2021 Budget is $62.9 million, a decrease of $3.7 million, or 5.7%, from the 2020 Budget (excludes Pension Trust and Foreign Fire Tax Funds. The 2021 Budget froze employee wage increases, eliminated contracted paramedic services, and delayed certain capital projects in response to an uncertain revenue base. The projected ending cash balance for 2021 in the General Corporate Fund of $24.0 million is equal to 13.0 months of operating expenditures, which is above the Village’s six-month reserve policy. The COVID-19 pandemic will continue to have an impact on the Village’s future operating budgets. Revenues from sales tax, non-home rule sales tax, income tax, and other major sources are likely to see a slow recovery as the pandemic reaches an end. The Village has many new developments underway that are likely to help the recovery over the next few years. We will continue to closely monitor the economic effects of the pandemic and take steps to reduce the operating budget as necessary. Many major capital projects have been cancelled or postponed in order to preserve reserve balances. Staff is also reviewing all discretionary spending and revising operating plans on an ongoing basis. CONTACTING THE VILLAGE’S FINANCE DEPARTMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the Village’s finances and to demonstrate accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Jason Paprocki, Finance Director, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. BASIC FINANCIAL STATEMENTS Governmental Business-Type Activities Activities Total ASSETS Cash and investments 38,112,702$ 7,300,209$ 45,412,911$ Receivables (net, where applicable, of allowance for uncollectibles) Property taxes 414,500 - 414,500 Sales taxes 5,355,712 - 5,355,712 Utility tax 1,170,770 - 1,170,770 Accounts 488,365 - 488,365 Allotments 26,169 1,058,854 1,085,023 Accrued interest 150,476 27,874 178,350 Other 1,823,618 253,231 2,076,849 Internal balances (278,978) 278,978 - Prepaid expenses 422,974 - 422,974 Inventory 56,326 108,806 165,132 Capital assets not being depreciated 35,611,468 9,123,965 44,735,433 Capital assets being depreciated, net of accumulated depreciation 34,153,284 28,329,505 62,482,789 Total assets 117,507,386 46,481,422 163,988,808 DEFERRED OUTFLOWS OF RESOURCES Pension items - Police Pension 940,103 - 940,103 Pension items - Firefighters' Pension 305,300 - 305,300 Pension items - IMRF 914,680 310,101 1,224,781 Deferred outflows of resources - OPEB 1,202,154 110,801 1,312,955 Deferred outflows of resources - ARO - 297,000 297,000 Total deferred outflows of resources 3,362,237 717,902 4,080,139 Total assets and deferred outflows of resources 120,869,623 47,199,324 168,068,947 LIABILITIES Accounts payable 2,498,247 811,167 3,309,414 Accrued payroll 365,589 17,160 382,749 Deposits payable 1,125,275 114,424 1,239,699 Unearned revenue 98,173 142,698 240,871 Interest payable 86,042 - 86,042 Claims payable 133,761 - 133,761 Long-term liabilities Due within one year 1,615,418 104,479 1,719,897 Due in more than one year 49,373,673 1,419,875 50,793,548 Total liabilities 55,296,178 2,609,803 57,905,981 DEFERRED INFLOWS OF RESOURCES Pension items - Police Pension 3,391,591 - 3,391,591 Pension items - Firefighters' Pension 3,673,181 - 3,673,181 Pension items - IMRF 1,282,466 434,792 1,717,258 Deferred inflows of resources - OPEB 535,859 49,389 585,248 Deferred revenue - property taxes 414,500 - 414,500 Total deferred inflows of resources 9,297,597 484,181 9,781,778 Total liabilities and deferred inflows of resources 64,593,775 3,093,984 67,687,759 VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF NET POSITION December 31, 2020 (This statement is continued on the following page.) - 4 - Governmental Business-Type Activities Activities Total NET POSITION Net investment in capital assets 69,230,085$ 37,453,470$ 106,683,555$ Restricted for Infrastructure 6,981,187 - 6,981,187 Highways and streets 699,938 - 699,938 Fire department 207,446 - 207,446 Culture and recreation 4,480,808 - 4,480,808 Economic development 267,300 - 267,300 Unrestricted (deficit)(25,590,916) 6,651,870 (18,939,046) TOTAL NET POSITION 56,275,848$ 44,105,340$ 100,381,188$ December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF NET POSITION (Continued) See accompanying notes to financial statements. - 5 - Operating Capital Charges Grants and Grants and FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities General government 4,503,412$ 4,010,311$ -$ -$ Public safety 15,521,558 985,736 448,092 - Public works 5,123,073 55,431 460,046 - Culture and recreation 2,331,451 4,633 - - Interest and fees 214,729 - - - Total governmental activities 27,694,223 5,056,111 908,138 - Business-Type Activities Water and sewer 6,805,026 9,886,349 - - Sports Core 3,204,036 2,900,872 - 18,880 Golf Surcharge - 124,145 - - Total business-type activities 10,009,062 12,911,366 - 18,880 TOTAL PRIMARY GOVERNMENT 37,703,285$ 17,967,477$ 908,138$ 18,880$ Program Revenues VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31, 2020 - 6 - Governmental Business-Type Activities Activities Total (493,101)$ -$ (493,101)$ (14,087,730) - (14,087,730) (4,607,596) - (4,607,596) (2,326,818) - (2,326,818) (214,729) - (214,729) (21,729,974) - (21,729,974) - 3,081,323 3,081,323 - (284,284) (284,284) - 124,145 124,145 - 2,921,184 2,921,184 (21,729,974) 2,921,184 (18,808,790) General Revenues Taxes Property 414,544 - 414,544 Replacement 305,237 - 305,237 Sales, local use 5,348,429 - 5,348,429 Utility 5,794,806 - 5,794,806 Hotel/motel 458,752 - 458,752 Other 111,435 - 111,435 Intergovernmental State sales tax 11,507,051 - 11,507,051 State income tax 856,655 - 856,655 Investment income 621,472 117,354 738,826 Gain (loss) on disposal of capital assets - (82,854) (82,854) Miscellaneous 1,142,200 - 1,142,200 Transfers in (out)(383,561) 383,561 - Total 26,177,020 418,061 26,595,081 CHANGE IN NET POSITION 4,447,046 3,339,245 7,786,291 NET POSITION, JANUARY 1 51,828,802 40,766,095 92,594,897 NET POSITION, DECEMBER 31 56,275,848$ 44,105,340$ 100,381,188$ Primary Government and Change in Net Position Net (Expense) Revenue See accompanying notes to financial statements. - 7 - Promenade Nonmajor Total General Infrastructure TIF Governmental Governmental Cash and investments 23,915,805$ 7,483,234$ 267,300$ 5,451,167$ 37,117,506$ Receivables Property taxes - - 414,500 - 414,500 Sales taxes 3,726,678 1,629,034 - - 5,355,712 Utility taxes 1,170,770 - - - 1,170,770 Accounts 488,365 - - - 488,365 Allotments - - - 26,169 26,169 Accrued interest 109,714 15,864 - 21,694 147,272 Other 763,773 200,592 - 550,577 1,514,942 Inventories 2,111 - - - 2,111 Prepaid items 53,410 - - - 53,410 Due from other funds 272,398 - - - 272,398 TOTAL ASSETS 30,503,024$ 9,328,724$ 681,800$ 6,049,607$ 46,563,155$ LIABILITIES Accounts payable 200,023$ 2,129,207$ -$ 161,415$ 2,490,645$ Accrued payroll 345,352 17,738 - - 363,090 Deposits payable 1,125,275 - - - 1,125,275 Unearned revenue 75,249 - - - 75,249 Total liabilities 1,745,899 2,146,945 - 161,415 4,054,259 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes - - 414,500 - 414,500 Unavailable other receivables 554,976 200,592 - 500,000 1,255,568 Total deferred inflows of resources 554,976 200,592 414,500 500,000 1,670,068 Total liabilities and deferred inflows of resources 2,300,875 2,347,537 414,500 661,415 5,724,327 LIABILITIES, DEFERRED INFLOWS ASSETS VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENTAL FUNDS December 31, 2020 BALANCE SHEET OF RESOURCES, AND FUND BALANCES - 8 - Promenade Nonmajor Total General Infrastructure TIF Governmental Governmental FUND BALANCES Nonspendable Inventory 2,111$ -$ -$ -$ 2,111$ Prepaid items 53,410 - - - 53,410 Restricted Infrastructure - 6,981,187 - - 6,981,187 Highways and streets - - - 699,938 699,938 Public safety - - - 207,446 207,446 Culture and recreation - - - 4,480,808 4,480,808 Economic development - - 267,300 - 267,300 Unassigned 28,146,628 - - - 28,146,628 Total fund balances 28,202,149 6,981,187 267,300 5,388,192 40,838,828 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 30,503,024$ 9,328,724$ 681,800$ 6,049,607$ 46,563,155$ VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENTAL FUNDS BALANCE SHEET (Continued) December 31, 2020 See accompanying notes to financial statements. - 9 - FUND BALANCES OF GOVERNMENTAL FUNDS 40,838,828$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 66,252,068 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 1,255,568 Differences between expected and actual experiences, assumption changes, and net difference between projected and actual earnings for the Police Pension Fund are recognized as deferred outflows and inflows of resources on the statement of net position (2,451,488) Differences between expected and actual experiences, assumption changes, and net difference between projected and actual earnings for the Firefighters' Pension Fund are recognized as deferred outflows and inflows of resources on the statement of net position (3,367,881) Differences between expected and actual experiences, assumption changes, and net difference between projected and actual earnings for the Illinois Municipal Retirement Fund are recognized as deferred outflows and inflows of resources on the statement of net position (354,845) Differences between expected and actual experiences, assumption changes, and net difference between projected and actual earnings for the other postemployment benefit plan are recognized as deferred outflows and inflows of resources on the statement of net position 660,801 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Notes payable (2,581,263) Net pension liability - Police Pension (19,271,574) Net pension liability - Firefighters' Pension (19,155,115) Net pension liability - IMRF (1,417,780) Compensated absences payable (1,194,109) Other postemployment benefit liability (6,716,501) Accrued interest on long-term liabilities is reported as a liability on the statement of net position (86,042) The net position of the Internal Service Fund is included in the governmental activities in the statement of net position 3,865,181 NET POSITION OF GOVERNMENTAL ACTIVITIES 56,275,848$ VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION December 31, 2020 See accompanying notes to financial statements. - 10 - Promenade Nonmajor Total General Infrastructure TIF Governmental Governmental REVENUES Intergovernmental 13,510,432$ -$ 82,220$ 530,086$ 14,122,738$ Non-home rule sales tax - 4,914,208 - - 4,914,208 Utility taxes 5,794,806 - - - 5,794,806 Hotel/motel taxes - - - 458,752 458,752 Licenses and permits 3,534,650 - - - 3,534,650 Charges for services 1,177,838 335 - - 1,178,173 Property taxes - - 414,544 - 414,544 Fines and penalties 343,288 - - - 343,288 Investment income 433,308 93,957 545 93,662 621,472 Miscellaneous 259,258 144 - 32,592 291,994 Total revenues 25,053,580 5,008,644 497,309 1,115,092 31,674,625 EXPENDITURES Current General government 3,621,996 143,507 4,303 74,715 3,844,521 Public safety 16,244,626 - - 52,928 16,297,554 Public works 830,138 6,893,275 - - 7,723,413 Culture and recreation 824,878 - - 1,326,256 2,151,134 Debt service Principal - - 305,000 - 305,000 Interest and fiscal charges - - 224,900 - 224,900 Total expenditures 21,521,638 7,036,782 534,203 1,453,899 30,546,522 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,531,942 (2,028,138) (36,894) (338,807) 1,128,103 OTHER FINANCING SOURCES (USES) Transfers in - 971,212 - - 971,212 Transfers (out)(383,561) - - (971,212) (1,354,773) Total other financing sources (uses)(383,561) 971,212 - (971,212) (383,561) NET CHANGE IN FUND BALANCES 3,148,381 (1,056,926) (36,894) (1,310,019) 744,542 FUND BALANCES, JANUARY 1 25,053,768 8,038,113 304,194 6,698,211 40,094,286 FUND BALANCES, DECEMBER 31 28,202,149$ 6,981,187$ 267,300$ 5,388,192$ 40,838,828$ For the Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES See accompanying notes to financial statements. - 11 - NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 744,542$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures; however, they are capitalized on the statement of net position and depreciated on the statement of activities 4,127,718 Depreciation expense does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds (1,791,463) 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 850,205 The repayment of the principal portion of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding on the statement of net position 305,000 The change in accrued interest is reported as expenses on the statement of activities 10,470 The change in compensated absences payable is shown as an expense of the statement of activities (140,531) The change in the other postemployment benefit liability, deferred outflows and inflows of resources (499,959) The change in the Police Pension Fund net pension liability and deferred outflows/inflows of resources is not a source or use of a financial resource 502,526 The change in the Firefighters' Pension Fund net pension liability and deferred outflows of resources is not a source or use of a financial resource 1,082,374 The change in the Illinois Municipal Retirement Fund net pension liability and deferred outflows/inflows of resources is not a source or use of a financial resource (325,357) The change in net position of Internal Service Funds is reported in governmental activities (418,479) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 4,447,046$ For the Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES See accompanying notes to financial statements. - 12 - Governmental Activities Nonmajor Enterprise Waterworks Fund - Golf Internal System Sports Core Surcharge Total Service CURRENT ASSETS Cash and investments 6,904,140$ 263,476$ 132,593$ 7,300,209$ 995,196$ Receivables Billed and unbilled water sales 1,058,854 - - 1,058,854 - Accrued interest 27,874 - - 27,874 3,204 Other 125,646 127,585 - 253,231 308,676 Inventory - 108,806 - 108,806 54,215 Prepaid expenses - - - - 369,564 Total current assets 8,116,514 499,867 132,593 8,748,974 1,730,855 NONCURRENT ASSETS Capital assets Assets not being depreciated 293,625 8,830,340 - 9,123,965 - Assets being depreciated Cost 38,628,312 12,036,976 - 50,665,288 7,314,630 Accumulated depreciation (14,738,604) (7,597,179) - (22,335,783) (3,801,946) Net capital assets being depreciated 23,889,708 4,439,797 - 28,329,505 3,512,684 Net capital assets 24,183,333 13,270,137 - 37,453,470 3,512,684 Total noncurrent assets 24,183,333 13,270,137 - 37,453,470 3,512,684 Total assets 32,299,847 13,770,004 132,593 46,202,444 5,243,539 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF 121,735 188,366 - 310,101 32,183 Deferred outflows of resources - OPEB 48,826 61,975 - 110,801 9,913 Deferred outflows of resources - ARO 297,000 - - 297,000 - Total deferred outflows of resources 467,561 250,341 - 717,902 42,096 Total assets and deferred outflows of resources 32,767,408 14,020,345 132,593 46,920,346 5,285,635 VILLAGE OF OAK BROOK, ILLINOIS PROPRIETARY FUNDS STATEMENT OF NET POSITION December 31, 2020 Business-Type Activities (This statement is continued on the following page.) - 13 - Governmental Activities Nonmajor Enterprise Waterworks Fund - Golf Internal System Sports Core Surcharge Total Service CURRENT LIABILITIES Accounts payable 754,931$ 56,236$ -$ 811,167$ 7,602$ Accrued payroll 8,098 9,062 - 17,160 2,499 Current compensated absences payable 40,772 45,896 - 86,668 8,952 Deposits payable 817 113,607 - 114,424 - Unearned revenue - 142,698 - 142,698 22,924 Current other postemployment benefit liability 7,845 9,966 - 17,811 1,696 Current capital lease obligation - - - - 132,248 Claims payable - - - - 133,761 Due to other funds - - - - 272,398 Total current liabilities 812,463 377,465 - 1,189,928 582,080 NONCURRENT LIABILITIES Compensated absences payable 7,195 8,099 - 15,294 1,580 Net pension liability - IMRF 195,575 302,621 - 498,196 51,704 Other postemployment benefit liability 267,220 339,165 - 606,385 54,150 Asset retirement obligation 300,000 - - 300,000 - Capital lease obligation - - - - 402,419 Total noncurrent liabilities 769,990 649,885 - 1,419,875 509,853 Total liabilities 1,582,453 1,027,350 - 2,609,803 1,091,933 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF 170,685 264,107 - 434,792 45,124 Deferred inflows of resources - OPEB 21,764 27,625 - 49,389 4,419 Total deferred inflows of resources 192,449 291,732 - 484,181 49,543 Total liabilities and deferred inflows of resources 1,774,902 1,319,082 - 3,093,984 1,141,476 NET POSITION Net investment in capital assets 24,183,333 13,270,137 - 37,453,470 3,110,265 Unrestricted 6,809,173 (568,874) 132,593 6,372,892 1,033,894 TOTAL NET POSITION 30,992,506$ 12,701,263$ 132,593$ 43,826,362 4,144,159$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 278,978 TOTAL NET POSITION OF BUSINESS-TYPE ACTIVITIES 44,105,340$ Business-Type Activities STATEMENT OF NET POSITION (Continued) December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS PROPRIETARY FUNDS See accompanying notes to financial statements. - 14 - Governmental Activities Nonmajor Enterprise Waterworks Fund - Golf Internal System Sports Core Surcharge Total Service OPERATING REVENUES Charges for services 9,886,349$ 2,900,872$ 124,145$ 12,911,366$ 4,547,058$ Total operating revenues 9,886,349 2,900,872 124,145 12,911,366 4,547,058 OPERATING EXPENSES Operations 6,202,761 2,814,482 - 9,017,243 685,084 Claims and insurance - - - - 3,533,867 Miscellaneous - - - - 42,202 Depreciation and amortization 551,705 389,080 - 940,785 705,235 Total operating expenses 6,754,466 3,203,562 - 9,958,028 4,966,388 OPERATING INCOME (LOSS)3,131,883 (302,690) 124,145 2,953,338 (419,330) NON-OPERATING REVENUES (EXPENSES) Investment income 116,306 159 889 117,354 16,825 Grants - 18,880 - 18,880 - Interest expense - - - - (16,520) Gain (loss) on disposal of capital assets (89,998) 7,144 - (82,854) (50,488) Total non-operating revenues (expenses)26,308 26,183 889 53,380 (50,183) INCOME (LOSS) BEFORE TRANSFERS 3,158,191 (276,507) 125,034 3,006,718 (469,513) TRANSFERS Transfers in - 723,626 - 723,626 - Transfers (out)- - (340,065) (340,065) - Total transfers - 723,626 (340,065) 383,561 - CHANGE IN NET POSITION 3,158,191 447,119 (215,031) 3,390,279 (469,513) NET POSITION, JANUARY 1 27,834,315 12,254,144 347,624 4,613,672 NET POSITION, DECEMBER 31 30,992,506$ 12,701,263$ 132,593$ 4,144,159$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (51,034) CHANGE IN NET POSITION OF BUSINESS-TYPE ACTIVITIES 3,339,245$ Business-Type Activities For the Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION See accompanying notes to financial statements. - 15 - Governmental Activities Nonmajor Enterprise Waterworks Fund - Golf Internal System Sports Core Surcharge Total Service CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users 9,736,026$ 2,834,282$ 124,145$ 12,694,453$ 1,184,577$ Receipts from internal service transactions - - - - 3,073,887 Payments to suppliers (5,538,514) (1,244,163) - (6,782,677) (4,330,936) Payments to employees (740,860) (1,499,960) - (2,240,820) (211,652) Net cash from operating activities 3,456,652 90,159 124,145 3,670,956 (284,124) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Amounts received from (paid to) other funds - 723,626 (340,065) 383,561 272,398 Net cash from noncapital financing activities - 723,626 (340,065) 383,561 272,398 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchases of capital assets (3,598,499) (927,425) - (4,525,924) - Payment of deposit on capital asset - - - - (284,093) Proceeds from disposal of capital assets - 9,001 - 9,001 5,010 Grant receipts - 18,880 - 18,880 - Principal payments on capital lease - - - - (106,218) Interest payments on capital lease - - - - (16,520) Net cash from capital and related financing activities (3,598,499) (899,544) - (4,498,043) (401,821) CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investment securities (133,222) - 187,945 54,723 (32,425) Interest on investments 108,354 159 1,969 110,482 16,113 Net cash from investing activities (24,868) 159 189,914 165,205 (16,312) NET DECREASE IN CASH AND CASH EQUIVALENTS (166,715) (85,600) (26,006) (278,321) (429,859) CASH AND CASH EQUIVALENTS, JANUARY 1 3,470,555 349,076 158,599 3,978,230 1,011,242 CASH AND CASH EQUIVALENTS, DECEMBER 31 3,303,840$ 263,476$ 132,593$ 3,699,909$ 581,383$ VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2020 Business-Type Activities (This statement is continued on the following page.) - 16 - Governmental Activities Nonmajor Enterprise Waterworks Fund - Golf Internal System Sports Core Surcharge Total Service CASH AND INVESTMENTS Cash and cash equivalents 3,303,840$ 263,476$ 132,593$ 3,699,909$ 581,383$ Investments 3,600,300 - - 3,600,300 413,813 TOTAL CASH AND INVESTMENTS 6,904,140$ 263,476$ 132,593$ 7,300,209$ 995,196$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)3,131,883$ (302,690)$ 124,145$ 2,953,338$ (419,330)$ Adjustments to reconcile operating income (loss) to net cash from operating activities Depreciation and amortization 551,705 389,080 - 940,785 705,235 Changes in current assets and liabilities Accounts receivable (150,323) (11,719) - (162,042) (288,594) Prepaid expenses 11,214 - - 11,214 (10,930) Inventory - (1,322) - (1,322) 991 Accounts payable (75,931) 26,976 - (48,955) (283,302) Accrued payroll (25,103) (22,546) - (47,649) (5,967) Deposits payable (460) 1,044 - 584 - Compensated absences payable (183) 14,807 - 14,624 1,246 Pension items - IMRF 41,493 26,154 - 67,647 13,171 Pension items - OPEB (27,643) 25,246 - (2,397) 3,206 Unearned revenue - (54,871) - (54,871) (12,327) Claims payable - - - - 12,477 NET CASH FROM OPERATING ACTIVITIES 3,456,652$ 90,159$ 124,145$ 3,670,956$ (284,124)$ NONCASH TRANSACTIONS Capital assets financed by capital leases -$ -$ -$ -$ 190,014$ Loss on disposal of capital assets (89,998) (1,857) - (91,855) 55,498 TOTAL NONCASH TRANSACTIONS (89,998)$ (1,857)$ -$ (91,855)$ 245,512$ Business-Type Activities For the Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS See accompanying notes to financial statements. - 17 - ASSETS Cash and short-term investments 262,761$ Investments at fair value Certificates of deposit 378,260 Money markets 3,387,188 U.S. Treasury obligations 1,447,930 U.S. agency obligations 11,040,276 State and local obligations 2,176,905 Corporate bonds 8,921,332 Mutual funds 51,615,648 Receivables Accrued interest 163,588 Prepaid items 4,725 Total assets 79,398,613 LIABILITIES Accounts payable 41,451 Total liabilities 41,451 NET POSITION RESTRICTED FOR PENSIONS 79,357,162$ VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION December 31, 2020 PENSION TRUST FUNDS See accompanying notes to financial statements. - 18 - ADDITIONS Contributions Employer 3,638,198$ Employee 838,656 Total contributions 4,476,854 Investment income Net appreciation in fair value of investments 7,199,856 Interest 1,925,171 Total investment income 9,125,027 Less investment expenses (138,427) Net investment income 8,986,600 Total additions 13,463,454 DEDUCTIONS Benefits and refunds 6,104,184 Administrative expenses 81,688 Total deductions 6,185,872 NET INCREASE 7,277,582 NET POSITION RESTRICTED FOR PENSIONS January 1 72,079,580 December 31 79,357,162$ VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2020 See accompanying notes to financial statements. - 19 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2020 1. 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 inspectio nal services, and general administrative services. The accounting policies of the Village conform to accounting pri nciples generally accepted in the United States of America, as applicable to governments (hereinafter referred to as generally accepted accounting principles (GAAP)). The Government al Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies: a. Reporting Entity The Village was incorporated in 1958. The Village is a municipal corporation governed by an elected eight-member board. As required by GAAP, these financial statements present the Village (the primary government) and its component units. Management has determined that there are two fiduciary component units that are required to be included in the financial statements of the Village as pension trust funds. Police Pension Employees Retirement System The Village’s police employees participate in Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the V illage’s President, one elected by pension beneficiaries and two elected police employees constitute the pension board. The Village i s obligated to fund all PPERS costs not funded by PPERS participants based upon actuarial valuations, which creates a financial burden on the Village. The State of Illinois is authorized t o establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels, which results in the PPERS being fiscally dependent upon the Village. PPERS is reported as a pension trust fund. PPERS does not issue a stand-alone financial report. - 20 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) Firefighters’ Pension Employees Retirement System The Village’s sworn firefighters participate in Firefighters’ Pension Employees Retirement System (FPERS). 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 elected pension beneficiary and two elected fire employees constitute the pension bo ard. The Village is obligated to fund all FPERS costs not funded by FPERS participants based upon actuarial valuations, which creates a financial burden on the Village. 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, which results in the FPERS being fiscally dependent on the Village. FPERS is reported as a pension trust fund. FPERS does not issue a stand-alone financial report. b. Fund Accounting The Village uses funds to report on its financi al position and the change in its financial position. Fund accounting is des igned to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The minimum number of funds are maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary, and fiduciary. Governmental funds are used to account for all or most of the Village ’s general activities, including the collection and disbursement of committed, restricted, or assigned monies (special revenue funds), the funds committed, restricted, or assigned for the acquisition or construction of capital assets (capital projects funds), and the funds committed, restricted, or assigned for the servicing of long-term debt (debt service funds). The General Fund is used to account for all activities of the Village not accounted for in some other fund. Enterprise funds are used to account for activities simila r to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departme nts or agencies primarily within the Village (internal service funds). - 21 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Fiduciary funds are used to account for fiduciary activities (e.g., assets held on behalf of outside parties, including other governments). The Village utilizes pension trust funds which are generally used to account for assets that the Village holds in a fiduciary capacity. c. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and us ed are not eliminated on these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment, or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. 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 operation al or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 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: The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those accounted for in another fund. The Infrastructure Fund is used to account for revenues restricted for and expenditures relative to the construction and maintenance of roadway, drainage, and bike trail improvements. The Promenade TIF Fund is used to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. - 22 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) c. Government-Wide and Fund Financial Statements (Continued) The Village reports the following major proprietary funds: The Waterworks System Fund is used to account for the revenues and expenses relative to the operation of the water utility. The Sports Core Fund is used to account for the revenues and expenses relative to the operation of the Oak Brook Sports Core. Additionally, the Village reports the following Internal Service Funds: Internal Service Funds 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. These funds are reported as part of the governmental activities on the government-wide financial statements as they provide services to the Village’s governmental funds/activities. The Village reports pension trust funds as fiduciary component units to account for the Police Pension Fund and Firefighters’ Pension Fund. d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied (i.e., intended to finance). Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues and expenses are directly attributable to the operation of the proprietary funds. Non-operating revenue/expenses are incidental to the operations of these funds. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough there after to be used to pay liabilities of the current period. - 23 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) 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. The Village recognizes property taxes when they become both measurable and available in the y ear for which they are levied (i.e., intended to finance). Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as expenditures when due. Property taxes, sales taxes owed from the state at year end, franchise taxes, licenses, charges for services, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and are recognized as revenues of the current fiscal period. Fines and permits revenues are not susceptibl e to accrual because generally they are not measurable until received in cash. In applying the susceptible to accrual concept to intergovernmental revenues (e.g., federal and state grants), the legal and contractual requirements of the numerous individual programs are used as guidelines. There are, however, essentially two types of revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and are gene rally revocable only for failure to comply with prescribed eligibility requirements, such as equal employment opportunity. These resources are reflected as revenues at the time of receipt or earlier if they meet the availability criterion. The Village may report unearned revenue and deferred/unavailable revenue on its financial statements. Deferred/unavailable revenues arise when a potential revenue does not meet the available criteria for recognition in the current period, under the modified accrual basis of accounting. Unearned revenue arises when a revenue is measurable but not earned under the accrual basi s of accounting. Unearned revenues also arise when resources are received by the Village before it has a legal claim to them or prior to the provision of services, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability or deferred inflow of resources for unearned and deferred/unavailable revenue are removed from the financial statements and revenue is recognized. - 24 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) e. Cash and Investments For purposes of the statement of cash flows, the Village considers cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. Investments with a maturity of less than one year when purchased, non-negotiable certificates of deposit, and other nonparticipating investments are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased and all investments of the pension trust funds are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. f. Interfund Receivables/Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “interfund receivables/payables” (current portion of interfund loans) or “advances to/from other funds” (noncurrent portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Advances are offset by nonspendable fund balance in applicable governmental funds. Interfund service transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. g. Inventories and Prepaid Items/Expenses 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 r ecorded as an expenditure at the time individual inventory items are utilized or sold. General Fund inventories are equally offset by nonspendable fund balance which indicat es that they do not constitute “available spendable resources” even though they are a component of net current assets. Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. Prepaid items/expenses are recorded as expenditures/expenses when consumed rather than when purchased. - 25 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) h. Capital Assets Capital assets, which include property, plant, 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 one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at 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. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, and equipment is depreciated using the straight-line method over the following estimated useful lives: Assets Years Land improvements 20 Buildings and building improvements 5-50 Equipment 5-20 Vehicles 2-20 Infrastructure 20-75 i. 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. All vested vacation, sick leave, and compensatory leave pay is accrued when incurred in the governmentwide 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, 2020, are determined on the basis of current salary rates and include salary related payments. - 26 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j. Long-Term Obligations In the government-wide financial statements and proprietary funds in the fund financial statements, long-term debt, and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund financial statements. Bond premiums and discounts, as well as the unamortized loss on refunding, are deferred and amortized over the life of the bonds. Bonds payable are reported net of any applicable bond premium or discount. In the fund financial statements, governmental funds recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. k. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred i nflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. l. Fund Balance/Net Position In the fund financial statements, governmental funds report nonspendable fund balance for amounts that are either not in spendable form or legally or contractually required to be maintained intact . Restrictions of fund balance are reported for amounts constrained by legal restrictions from outside parties for a specific purpose, or externally imposed by outside entities. Committed fund balance is constrained by formal actions of the Village Board of Trustees, which is considered the Village’s highest level of decision-making authority. Formal actions include ordinances approved by the Board of Trustees. Assigned fund balance represents amounts constrained by the Village’s intent to use them for a specific purpose. The authority to assign fund balance has been delegated to the Village’s Finance Director through the approved fund balance policy adopted by the Village Board of Trustees. Any residual fund balance of the General Fund is reported as unassigned. Deficit fund balances of other governmental funds are also reported as unassigned. - 27 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) l. Fund Balance/Net Position (Continued) The Village’s flow of funds assumption prescribes that the funds with the highest level of constraint are expended first. If restricted or unrestricted funds are available for spending, the restricted funds are spent first. Additionally, if different levels of unrestricted funds are available for spending the Village considers committed funds to be expended first followed by assigned and then unassigned funds. 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 pro jected 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 of Trustees. In the government-wide financial statements, restricted net positions are legally restricted by outside parties for a specific purpose. Net investment in capital assets represents the book value of capital assets less any outstanding long-term debt issued to acquire or construct the capital assets. m. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptio ns 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. n. Postponement of Implementation of Certain Authoritative Guidance In accordance with the provisions of GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance, the Village has delayed the implementation of GASB Statement No. 87, Leases, to December 31, 2022. 2. DEPOSITS AND INVESTMENTS The Village and pension funds categorize the fair value measurements within the fair value hierarchy established by GAAP. 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; and Level 3 inputs are significant unobservable inputs. - 28 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) a. Village Investments The Village’s investment policy authorizes the Village to invest in all investments allowed by Illinois Compiled Statutes (ILCS). These include deposits/investments in insured commercial banks, savings and loan institutions, obligations of t he 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 Government or agreements to repurchase these same obligations, repurchase agreements, short -term commercial paper rated within the three highest class ifications by at least two standard rating services, and The Illinois Funds. The Illinois Public Treasurers’ Investment Pool, known as The Illinois Funds, operates as a qualified external investment pool in accordance with the criteria established in GASB Statement No. 79, Certain External Investment Pools and Pool Participants, and thus, reports all investments at amortized cost rather than fair value. The investment in The Illinoi s Funds by participants is also reported at amortized cost. The Illinois Funds does not have any limitations or restrictions on participant withdrawals. The Illinois Treasurer’s Office issues a separate financial report for The Illinois Funds which may be obtained by contacting the Administrative Office at Illinois Business Ce nter, 400 West Monroe Street, Suite 401, Springfield, Illinois 62704. The Village’s investment policy does limit their deposits to financial institutions that are members of the FDIC system and are cap able of posting collateral for amounts in excess of FDIC insurance. Additionally, the Village will not invest in any institution in which the Village’s funds on deposit are in excess of 25% of the institution’s capital stock and surplus. It is the policy of the Village to invest its funds in a manner whi ch will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds, using the “prudent person” standard for managing the overall portfolio. The primary objectives of the policy are, in order of priority, safety of capital, liquidity, maintenance of public trust and prudence. The Village maintains a cash pool that is available for use by all funds, except the pension trust funds. Investments are separately held by several of the Village’s funds. The deposits and investments of the pension trust funds are held separately from those of other funds. - 29 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) a. Village Investments (Continued) Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Village’s deposits may not be returned to it. The Village’s investment policy requires pledging of collateral for all bank balances in excess of federal depository insurance, at an amount not less than 110% of the fair market value of the funds secured, with the collateral held by an agent of the Village in the Village’s name. Investments The following table presents the investments and maturities of the Vil lage’s debt securities as of December 31, 2020: Investment Maturities (in Years) Investment Type Fair Value Less Than 1 1-5 6-10 Greater than 10 Negotiable certificate of deposits $ 3,718,417 $ 2,227,557 $ 1,490,860 $ - $ - U.S. agency obligations 1,609,759 - - - 1,609,759 Municipal bonds 9,002,243 3,862,441 5,139,802 - - Corporate bonds 8,705,726 4,077,552 4,628,174 - - TOTAL $ 23,036,145 $ 10,167,550 $ 11,258,836 $ - $ 1,609,759 Interest rate risk is the risk that changes in i nterest rates will adversely affect the market value of an investment. 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 investment s 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 Village’s investment policy specifically prohibits the use of or the investment in derivatives. The Village has the following recurring fair value measurements as of December 31, 2020: the certificate of deposits, U.S. agency obligations, state and local obligations, and corporate bonds, are valued using quoted matrix pricing models (Level 2 inputs). The Village limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity. This is done primarily 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. - 30 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) a. Village Investments (Continued) Investments (Continued) Investments in corporate bonds are rated BBB+ to Aaa. Investments in municipal bonds are rated A- to AAA. Investments in U.S. agency obligations and negotiable certificate of deposits are not rated. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Village will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Village’s investment policy requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held in a custodial account with the trust department of an approved financial institution. The Illinois Funds are not subject to custodial credit risk. Concentration of credit risk is the risk that the Village has a high percentage of its investments invested in one type of investment. 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. 3. PROPERTY TAXES Property taxes for 2020 attach as an enforceable lien on January 1, 2020, on property values assessed as of the same date. Taxes are levied by December 31 of the fiscal year by passage of a Tax Levy Ordinance. Tax bills are prepared by the 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. 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). - 31 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 4. RECEIVABLES The following receivables are included in other receivables on the statement of net position at December 31, 2020: GOVERNMENTAL ACTIVITIES Loans receivable $ 500,000 Hotel/motel tax 45,576 IRMA surplus 755,568 State use tax 111,314 Stop loss receivable 292,054 Miscellaneous 119,106 TOTAL GOVERNMENTAL ACTIVITIES $ 1,823,618 BUSINESS-TYPE ACTIVITIES IRMA surplus $ 205,369 Members charges 27,587 Miscellaneous 20,275 TOTAL BUSINESS-TYPE ACTIVITIES $ 253,231 5. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2020 was as follows: Beginning Balances Increases Decreases Ending Balances 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 4,318,299 1,530,413 3,405,189 2,443,523 Total capital assets not being depreciated 37,486,244 1,530,413 3,405,189 35,611,468 Capital assets being depreciated Buildings and building and land improvements 25,903,073 1,570,177 - 27,473,250 Computer equipment 1,174,829 16,493 106,313 1,085,009 Other equipment 2,004,885 25,864 297,274 1,733,475 Vehicles 127,047 - - 127,047 Infrastructure 37,803,346 4,390,260 316,069 41,877,537 Internal service fund vehicles 7,549,153 189,714 424,238 7,314,629 Total capital assets being depreciated 74,562,333 6,192,508 1,143,894 79,610,947 - 32 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. CAPITAL ASSETS (Continued) Beginning Balances Increases Decreases Ending Balances GOVERNMENTAL ACTIVITIES (Continued) Less accumulated depreciation for Buildings and building and land improvements $ 10,874,851 $ 848,074 $ - $ 11,722,925 Computer equipment 993,648 65,669 106,313 953,004 Other equipment 1,592,416 88,419 297,274 1,383,561 Vehicles 25,410 12,705 - 38,115 Infrastructure 27,097,585 776,596 316,069 27,558,112 Internal service fund vehicles 3,465,450 705,235 368,739 3,801,946 Total accumulated depreciation 44,049,360 2,496,698 1,088,395 45,457,663 Total capital assets being depreciated, net 30,512,973 3,695,810 55,499 34,153,284 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS, NET $ 67,999,217 $ 5,226,223 $ 3,460,688 $ 69,764,752 BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 8,292,265 $ - $ - $ 8,292,265 Construction in progress 2,753,167 438,211 2,359,678 831,700 Total capital assets not being depreciated 11,045,432 438,211 2,359,678 9,123,965 Capital assets being depreciated Land improvements 3,320,638 - - 3,320,638 Building and building improvements 6,883,991 416,030 9,285 7,290,736 Infrastructure 28,326,553 5,903,526 265,440 33,964,639 Vehicles, machinery, and equipment 6,056,794 127,835 95,354 6,089,275 Total capital assets being depreciated 44,587,976 6,447,391 370,079 50,665,288 Less accumulated depreciation for Land improvements 2,747,209 68,301 - 2,815,510 Building and building improvements 3,572,129 233,378 7,429 3,798,078 Infrastructure 10,226,985 481,505 175,442 10,533,048 Vehicles, machinery, and equipment 5,129,900 154,601 95,354 5,189,147 Total accumulated depreciation 21,676,223 937,785 278,225 22,335,783 Total capital assets being depreciated, net 22,911,753 5,509,606 91,854 28,329,505 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS, NET $ 33,957,185 $ 5,947,817 $ 2,451,532 $ 37,453,470 - 33 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. CAPITAL ASSETS (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 733,931 Public safety 584,301 Highways and streets 1,050,617 Culture and recreation 127,849 TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 2,496,698 BUSINESS-TYPE ACTIVITIES Waterworks $ 548,705 Sports Core 389,080 TOTAL DEPRECIATION EXPENSE - BUSINESS-TYPE ACTIVITIES $ 937,785 6. LONG-TERM DEBT a. Note Payable The Village has issued notes payable related to developer and intergovernmenta l agreements. The notes payable currently outstanding are as follows: Issue Fund Debt Retired By Balances January 1 Issuance Retirements Balances December 31 Current $4,250,000 TIF note payable to developers dated June 6, 2005 for certain improvements in the TIF area, interest at 8% due in semiannual installments contingent upon sufficient pledged incremental real estate tax and sales tax. Principal is due by February 1, 2024. Promenade TIF $ 2,886,263 $ - $ 305,000 $ 2,581,263 $ 265,000 TOTAL $ 2,886,263 $ - $ 305,000 $ 2,581,263 $ 265,000 The repayment of the TIF not e payable is based on incremental real estate tax and sales tax received. As such, there is no debt service to maturity schedule. - 34 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) b. Capital Lease Obligation The Village leases capital assets under capital leases, which expire between January 2020 and September 2025. Annual lease payments, including interest ranging from 2.65% to 5.43%, range from $1,730 to $11,613. As of December 31, 2020, the cost of the capital assets acquired under capital leases is $823,917, the accumulated depreciation is $247,175, and the net book value is $576,742, and is included in capital assets in the governmental activities. Minimum future lease payments under the capital lease together with the present value of the net minimum lease payments as of December 31, 2020 are as follows: Fiscal Year Ending April 30, Payment 2021 $ 164,831 2022 149,111 2023 101,305 2024 33,941 2025 6,686 Total minimum lease payments 455,874 Less amount representing interest (98,389) Reduced book value 177,182 Present value of future minimum lease payments 534,667 Less current portion 132,248 LONG-TERM PORTION $ 402,419 c. Legal Debt Margin 2019 assessed valuation (latest information available) $ 1,600,968,484 Legal debt limit - 8.625% of assessed valuation $ 138,083,532 Amount of debt applicable to debt limit - LEGAL DEBT MARGIN $ 138,083,532 - 35 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) d. Changes in Long-Term Liabilities During the fiscal year, the following changes occurred in liabilities reported in the governmental activities: Balances January 1 Additions Reductions Balances December 31 Current Portion Notes payable $ 2,886,263 $ - $ 305,000 $ 2,581,263 $ 265,000 Capital leases 450,871 190,014 106,218 534,667 132,248 Compensated absences 1,062,864 1,204,641 1,062,864 1,204,641 1,023,945 Net pension liability - IMRF 4,162,938 - 2,693,454 1,469,484 - Net pension liability - Police Pension 21,924,396 - 2,652,822 19,271,574 - Net pension liability - Firefighters’ Pension 21,496,383 - 2,341,268 19,155,115 - Total other postemployment benefit liability 5,666,734 1,105,613 - 6,772,347 194,225 TOTAL GOVERNMENTAL ACTIVITIES $ 57,650,449 $ 2,500,268 $ 9,161,626 $ 50,989,091 $ 1,615,418 The compensated absences for governmental activities typically have been liquidated by the General Fund and the Infrastructure Fund. The net pension liabilities and total other postemployment benefit liability have typically been liquidated by the General Fund. During the fiscal year, the following changes occurred in liabilities reported in the business-type activities: Balances January 1 Issuances Reductions Balances December 31 Current Portion Compensated absences $ 87,338 $ 101,962 $ 87,338 $ 101,962 $ 86,668 Net pension liability - IMRF 1,542,247 - 1,044,051 498,196 - Total other postemployment benefit liability 571,622 52,574 - 624,196 17,811 Asset retirement obligation - 300,000 - 300,000 - TOTAL BUSINESS-TYPE ACTIVITIES $ 2,201,207 $ 454,536 $ 1,131,389 $ 1,524,354 $ 104,479 - 36 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. LONG-TERM DEBT (Continued) e. Asset Retirement Obligations The Village has recognized an asset retirement obligation (ARO) and related deferred outflow of resources in connection with its obligation to seal and abandon various deep water wells at the end of their estimated useful lives in accordance with federal, state and/or local requirements. The ARO was measured using actual historical costs for similar abandonments, adjusted for inflation through the end of the year. The estimated remaining useful lives of the water wells is 100 years. 7. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; illnesses of employees; and natural disasters. The Village participates in the Intergovernmental Risk Management Agency (IRMA) which is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation’s Statute to pool its risk management needs. The Village pays annual premiums to IRMA for its workers’ compensation, general liability, and property coverage. The Village assumes the first $2,500 of each occurrence, with IRMA having a mix of self- insurance and commercial insurance at various amounts above that level. The Village appoints one delegate, along with an alternate delegate, to represent the Village 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. The Village, along with IRMA’s other members, has a contractual obligation to fund any deficit of IRMA attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits. No such contributions have occurred during the past three years. In addition, the Village provides medical and dental coverage to village employees, their dependents, retirees, and employees of the Oak Brook Park District through a limited self-insurance program. The Village is self-insured for the first $85,000 per individual for medical claims up to a maximum limit of $2,967,224 for all individuals. Commercial insurance is carried for amounts in excess of the self-insured amounts. Settlements did not exceed insurance coverage in any of the last three years. The Village is entirely self- insured for dental claims up to the annual benefit limit of $1,500 per individual. The Village’s self-insurance activities are reported in the Self-Insurance Fund, an Internal Service Fund. - 37 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. RISK MANAGEMENT (Continued) Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and other funds, retirees, the Oak Brook Park District, and COBRA participants based upon equivalent premium estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Reported liabilities are estimated based on historical cost information and include an amount for claims that have been incurred but not reported. The total claim liability at year end was $133,761. A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2019 2020 CLAIMS PAYABLE, BEGINNING OF YEAR $ 143,349 $ 121,284 Claims incurred and changes in estimate (2,413,881) (2,184,426) Claims paid 2,391,816 2,196,903 CLAIMS PAYABLE, END OF YEAR $ 121,284 $ 133,761 8. CONTINGENT LIABILITIES a. Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village’s attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. b. Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial. c. DuPage Water Commission The Village’s agreement with the DuPage Water Commission provides that each member is liable for its proportionate share of any cost arising from defaults in payment obligations by other members. - 38 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. TAX ABATEMENTS 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 redevelopment 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. The total payments made in 2020 and the total cumulative payments to date are $529,900, $5,452,454, respectively. Payments are made until the earlier of the date the principal and interest on the note is paid in full or the end of th e term, January 2, 2023. 10. INDIVIDUAL FUND DISCLOSURES a. Due From/To Other Funds Individual fund interfund receivables/payables are as follows: Receivable Fund Payable Fund Amount Nonmajor Governmental General Fund $ 272,398 TOTAL $ 272,398 The purposes of the due from/due to other funds are as follows: • $272,398 due from the General Fund to the nonmajor governmental (Self Insurance Fund) to eliminate a deficit cash position. Repayment is expected within one year. b. Interfund Transfers Interfund transfers between funds for the year ended December 31, 2020 were as follows: Transfers In Transfers Out General Sports Core $ - $ 383,561 Total General - 383,561 - 39 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 10. INDIVIDUAL FUND DISCLOSURES (Continued) b. Interfund Transfers (Continued) Transfers In Transfers Out Nonmajor Govermental Funds In frastructure Fund $ - $ 971,212 Total Special Revenue Funds - 971,212 Infrastructure Fund Nonmajor Govermental Funds 971,212 - Total Infrastructure Fund 971,212 - Sports Core General 383,561 - Nonmajor Proprietary - Golf surcharge 340,065 - Total Sports Core 723,626 - Nonmajor Proprietary - Golf surcharge Sports Core - 340,065 Total Nonmajor Proprietary - 340,065 TOTAL $ 1,694,838 $ 1,694,838 The purpose of significant transfers is as follows: • $383,561 transferred to the Sports Core from the General Fund to pay for capital projects. This transfer will not be repaid. • $122,978 transferred to the Infrastructure Fund from Nonmajor Govermental Funds (Hotel/Motel Tax ) to pay for capital projects. This transfer will not be repaid. • $848,233 transferred to the Infrastructure Fund from the Nonmajor Govermental Funds (Motor Fuel Tax) to pay for capital projects. This transfer will not be repaid. • $340,065 transferred to the Sports Core Fund from the Nonmajor Proprietary Funds (Golf Surcharge) to pay for capital projects. This transfer will not be repaid. - 40 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS a. Plan Description In addition to providing the pension benefits described, the Village provides postemployment health care and life insurance benefits (OPEB) for retired employees through a single-employer defined benefit plan. The benefits, benefit levels, employee contributions, and employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. The activity of the plan is reported in the Village’s Self-Insurance Fund. b. 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. 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; and prescriptions. Upon a retiree reaching age 65 years, Medicare becomes the primary insurer and the Village’s plan becomes secondary. For certain disabled employees who qualify for health insurance benefits under the Public Safety Employee Benefits Act (PSEBA), the Village is required to pay 100% of the cost of basic health insurance for the employee and their dependents for their lifetime. c. Membership At December 31, 2019 (most recent data available), membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 32 Inactive employees entitled to but not yet receiving benefits 18 Active plan members 135 TOTAL 185 Participating employers 1 d. Total OPEB Liability The Village’s total OPEB liability of $7,396,543 was measured as of December 31, 2020 and was determined by an actuarial valuation as of December 31, 2019. - 41 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) e. Actuarial Assumptions and Other Inputs The total OPEB liability at December 31, 2020, was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified. The total OPEB liability was rolled forward by the actuary using updated procedures to December 31, 2020, including updating the discount rate at December 31, 2020, as noted on the following page. Actuarial cost method Entry-age normal Actuarial value of assets Market value Salary increases 3.25% Discount rate 2.12% Healthcare cost trend rates 7.50% Initial 4.50% Ultimate The discount rate was based on The Bond Buyer 20-Bond GO Index, which is based on an average of certain general obligation municipal bonds maturing in 20 years and having an average rating equivalent of Moody’s Aa2 and Standard & Poor’s AA. f. Changes in the Total OPEB Liability Total OPEB Liability BALANCES AT JANUARY 1, 2020 $ 6,238,356 Changes for the period Service cost 399,277 Interest 212,958 Differences between expected and actual experience (7,464) Assumption changes* 765,452 Benefit payments (212,036) Net changes 1,158,187 BALANCES AT DECEMBER 31, 2020 $ 7,396,543 *There were changes in assumptions related to the discount rate. - 42 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) g. Rate Sensitivity The following is a sensitivity analysis of the total OPEB liability to changes in t he discount rate and the healthcare cost trend rate. The table below presents the total OPEB liability of the Village calculated using the discount rate of 2.12% as well as what the Village total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (1.12%) or 1 percentage point higher (3.12%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (1.12%) (2.12%) (3.12%) Total OPEB liability $ 8,171,807 $ 7,396,543 $ 6,719,054 The table below presents the total OPEB liability of the Village calculated using the healthcare rate of 7.50% to 4.50% as well as what the Village’s total OPEB liability would be if it were calculated using a healthcare rate that is 1 percentage point lower (6.50% to 3.50%) or 1 percentage point higher (8.50% to 5.50%) than the current rate: 1% Decrease Current Healthcare Rate 1% Increase (6.50% to 3.50%) (7.50% to 4.50%) (8.50% to 5.50%) Total OPEB liability $ 6,387,919 $ 7,396,543 $ 8,647,628 h. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the Village recognized OPEB expense of $712,804. At December 31, 2020, 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 $ 49,728 $ 387,815 Changes in assumptions 1,263,227 197,433 TOTAL $ 1,312,955 $ 585,248 - 43 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. OTHER POSTEMPLOYMENT BENEFITS (Continued) h. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in OPEB expense as follows: Year Ending December 31, 2021 $ 100,569 2022 100,569 2023 100,569 2024 100,569 2025 100,569 Thereafter 224,862 TOTAL $ 727,707 12. DEFINED BENEFIT PENSION PLANS 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 also a single-employer pension plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are governed by ILCS and can only be amended by the Illinois General Assembly. IMRF issues 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 or at www.imrf.org. The Police and Firefighters’ Pension Plans do not issue separate reports. The table below is a summary for all pension plans as of and for the year ended December 31, 2020: Police Firefighters’ IMRF Pension Pension Total Net pension liability $ 1,967,680 $ 19,271,574 $ 19,155,115 $ 40,394,369 Deferred outflows of resources 1,224,781 940,103 305,300 2,470,184 Deferred inflows of resources 1,717,258 3,391,591 3,673,181 8,782,030 Pension expense 1,051,558 1,301,118 752,181 3,104,857 - 44 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions Illinois Municipal Retirement Fund Plan Administration 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. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable. Plan Membership At December 31, 2019, IMRF membership consisted of: Inactive employees or their beneficiaries currently receiving benefits 120 Inactive employees entitled to but not yet receiving benefits 76 Active employees 71 TOTAL 267 Benefits Provided All employees (other than those covered by the Police or Firefighters’ Pension Plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF provides two tiers of pension benefits. Employees hired prior to January 1, 2011, are eligible for Tier 1 benefits. For Tier 1 employees, pension benefits vest after eight years of service. Participating members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with eight years of credited 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 each year of credited service up to 15 years, and 2% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating members who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of credited 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 each year of credited service up to 15 years, and 2% for each year thereafter. IMRF also provides death and disability benefits. These benefit provisions and all are established by state statute. - 45 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Benefits Provided (Continued) Contributions Participating members are required to contribute 4.50% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund IMRF as specified by statute. The required employer contribution rate for the year ended December 31, 2020 was 12.42% of covered payroll. The actual employer contribution rate for the year ended December 31, 2020 was 12.40% of covered payroll due to certain Village employees reaching the wage cap for Tier 2 participants. Actuarial Assumptions The Village’s net pension liability was measured as of December 31, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation performed as of the same date using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2019 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 3.35% to 14.25% Cost of living adjustments 3.00% Asset valuation method Fair value For nondisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). 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-2014 (base year 2012). IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. - 46 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Discount Rate The discount rate used to measure the total pension liability at December 31, 2019 was 7.25%. 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 the 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 IMRF’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Changes in the Net Pension Liability (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2019 $ 41,066,285 $ 35,361,100 $ 5,705,185 Changes for the period Service cost 516,338 - 516,338 Interest 2,922,546 - 2,922,546 Difference between expected and actual experience 389,071 - 389,071 Changes in assumptions - - - Employer contributions - 562,006 (562,006) Employee contributions - 240,618 (240,618) Net investment income - 6,770,446 (6,770,446) Benefit payments and refunds (2,026,957) (2,026,957) - Other (net transfer) - (7,610) 7,610 Net changes 1,800,998 5,538,503 (3,737,505) BALANCES AT DECEMBER 31, 2019 $ 42,867,283 $ 40,899,603 $ 1,967,680 - 47 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2020, the Village recognized pension expense of $1,051,558. At December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of resources related to IMRF from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 365,838 $ - Changes in assumption 210,421 - Net difference between projected and actual earnings on pension plan investments - 1,717,258 Contributions subsequent to the measurement date 648,522 - TOTAL $ 1,224,781 $ 1,717,258 Amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized in pension expense as follows: $648,522 reported as deferred outflows of resources related to pensions resulting from the village contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to IMRF will be recognized in pension expense as follows: Year Ending December 31, 2021 $ 23,726 2022 (459,530) 2023 145,089 2024 (850,284) 2025 - Thereafter - TOTAL $ (1,140,999) - 48 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Illinois Municipal Retirement Fund (Continued) 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 the net pension liability (asset) of the Village calculated using the discount rate of 7.25% as well as what the Village’s net pension liability (asset) would be if it were 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 (6.25%) (7.25%) (8.25%) Net pension liability (asset) $ 7,060,511 $ 1,967,680 $ (2,243,352) Police Pension Plan Plan Administration Police sworn personnel are covered by the Police Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. The plan is governed by a five-member Board of Trustees. Two members of the Board of Trustees are appointed by the Village President, one member is elected by pension beneficiaries, and two members are elected by active police employees. Plan Membership At December 31, 2020, the measurement date, membership consisted of: In active plan members currently receiving benefits 42 In active plan members entitled to but not yet receiving benefits 6 Active plan members 41 TOTAL 89 - 49 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Benefits Provided The Police Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.50% 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 eight years but less than 20 years of credited service may retire at or after age 60 and receive 2.50% of salary for each year of service. The monthly benefit shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension, and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the greater of the average monthly salary obtaining by dividing the total salary during the 48 consecutive months of service within the last of 60 months in which the total salary was the highest by the number of months in that period; or the average monthly salary obtained by dividing the total salary of the police officer during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Police officers’ salary for pension purposes is capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.50% 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 ten years may retire at or after age 50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or ½ of the change in the Consumer Price Index for the preceding calendar year. - 50 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Contributions Employees are required by ILCS 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 plan and the administrative costs as actuarially determined by an enrolled actuary. Effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service cost for the Police Pension Plan. The Village has chosen a policy to fund 100% of the past service costs by 2040. For the year ended December 31, 2020, the Village’s contribution was 45.87% of covered payroll. Investment Policy ILCS limit the Police Pension Fund’s (the Fund) investments to those allowable by ILCS and require the Fund’s Board of Trustees to adopt an investment policy which can be amended by a majority vote of the Board of Trustees. The Fund can invest in the same securities as the Village, plus the following: certain non-U.S. obligations (corporate debt securities), Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political divisions, Illinois insurance company general and separate accounts, equity mutual funds, and equity securities. The investment policy was not modified during the year ended December 31, 2020. The Fund’s investment policy, in accordance with ILCS, establishes the following target allocation across asset classes: Asset Class Range Target Long-Term Expected Real Rate of Return Large cap domestic equity 10% to 45% 25% 6.80% Small cap domestic equity 0% to 20% 10% 7.20% International equity 8% to 18% 15% 7.00% Real estate equity 0% to 10% 5% 5.60% Fixed income 30% to 50% 45% 2.50% - 51 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Investment Policy (Continued) The overall target for the Fund is approximately 40% invested in fixed income securities and 55% invested in equity securities. The long-term expected real rates of return are net of a 2.50% factor for inflation and investment expense. ILCS limits the 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 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 or arithmetic real rates of return excluding inflation for each major asset class included in the Fund’s target asset allocation as of December 31, 2020 are listed in the table on the previous page. Investment Concentrations There are no significant investments (other than U.S. agency securities and corporate bonds) in any one organization that represent 5% or more of the Fund’s investments. Investment Rate of Return For the year ended December 31, 2020, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 10.86%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a bank’s failure, the Fund’s deposits may not be returned to them. The Fund’s investment policy requires all bank balances to be covered by federal depository insurance. - 52 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Interest Rate Risk The following table presents the investments and maturities of the Fund’s debt securities as of December 31, 2020: Investment Maturities (in Years) Investment Type Fair Value Less Than 1 1-5 6-10 Greater than 10 U.S. agency obligations $ 3,513,528 $ - $ 1,445,885 $ 2,067,643 $ - State and local obligations 659,254 255,291 303,867 100,096 - Corporate bonds 7,063,962 518,288 5,637,952 907,722 - TOTAL $ 11,236,744 $ 773,579 $ 7,387,704 $ 3,075,461 $ - The Fund has the following recurring fair value measurements as of December 31, 2020: the U.S. agency obligations, state and local obligations, and corporate bonds are valued using quoted matrix pricing models (Level 2 inputs). The mutual funds use Level 1 inputs. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed for expected current cash flows. The investment policy does not limit the maximum maturity length of investments in the Fund. The Fund’s investment policy specifically prohibits the use of or the investment in derivatives. Credit Risk The Fund limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by primarily investing in U.S. obligations and other obligations which are rated in the top three classes by a national rating agency. The U.S. agency obligations are rated AA+. The state and local obligations range in rating from AA to not rated. The corporate bonds range in rating from A to BBB+. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Fund will not be able to recover the value of its investments that are in possession of an outside party. To limit its exposure, the Fund requires all security transactions that are exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the Fund’s agent separate from where the investment was purchased in the Fund’s name. The money market mutual funds and equity mutual funds are not subject to custodial credit risk. - 53 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Discount Rate The discount rate used to measure the total pension liability at December 31, 2020 was 6.75%. 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 the 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 Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Changes in the Net Pension Liability (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2020 $ 63,107,741 $ 41,183,345 $ 21,924,396 Changes for the period Service cost 869,540 - 869,540 Interest 4,215,181 - 4,215,181 Difference between expected and actual experience (698,928) - (698,928) Changes in assumptions (324,515) - (324,515) Changes in benefit terms (3,060,323) - (3,060,323) Employer contributions - 1,803,644 (1,803,644) Employee contributions - 521,151 (521,151) Other contributions - - - Net investment income - 4,427,403 (4,427,403) Benefit payments and refunds - (3,060,323) 3,060,323 Administrative expense - (38,098) 38,098 Net changes 1,000,955 3,653,777 (2,652,822) BALANCES AT DECEMBER 31, 2020 $ 64,108,696 $ 44,837,122 $ 19,271,574 - 54 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Changes in the Net Pension Liability (Continued) There were changes with respect to actuarial assumptions in the current year related mortality rates in 2020. Actuarial Assumptions The total pension liability above was determined by an actuarial valuation using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2020 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 3.75% Interest rate 6.75% Cost of living adjustments 3.00% Asset valuation method Fair value The RP-2014 Mortality Table with a blue collar adjustment, with generational improvement scale MP-2020 applied from 2013was used to measure mortality rates. - 55 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) 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 net pension liability of the Village calculated using the discount rate of 6.75% as well as what the Village’s net pension liability would be if it were 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 (5.75%) (6.75%) (7.75%) Net pension liability $ 28,108,860 $ 19,271,574 $ 12,046,762 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2020, the Village recognized pension expense of $1,301,118. At December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of resources related to the police pension from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 547,261 $ 628,659 Changes in assumptions 392,842 450,440 Net difference between projected and actual earnings on pension plan investments - 2,312,492 TOTAL $ 940,103 $ 3,391,591 Changes in the net pension liability related to the difference in actual and expected experience, or changes in assumptions regarding future events, are recognized in pension expense over the expected remaining service life of all employees (active and retired) in the plan. Differences in projected and actual earnings over the measurement period are recognized over a five-year period. - 56 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Police Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources related to the police pension will be recognized in pension expense as follows: Year Ending December 31, 2021 $ (386,167) 2022 (268,375) 2023 (1,257,530) 2024 (539,416) 2025 - Thereafter - TOTAL $ (2,451,488) Firefighters’ Pension Plan Plan Administration Firefighter sworn personnel are covered by the Firefighters’ Pension Plan, a single-employer defined benefit pension plan sponsored by the Village. The defined benefits and employee and minimum employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-101) and may be amended only by the Illinois legislature. The Village accounts for the Firefighters’ Pension Plan as a pension trust fund. The plan is governed by a five-member Board of Trustees. Two members of the Board of Trustees are appointed by the Village President, one member is elected by pension beneficiaries, and two members are elected by active firefighter employees. - 57 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Plan Membership At December 31, 2020, the measurement date, membership consisted of: Inactive plan members currently receiving benefits 48 In active plan members entitled to but not yet receiving benefits 5 Active plan members 31 TOTAL 84 Benefits Provided The following is a summary of benefits of the plan as provided for in ILCS: The Firefighters’ Pension Plan provides retirement benefits as well as death and disability benefits. Tier 1 employees (those hired prior to January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable service are entitled to receive an annual retirement benefit equal to one-half of the salary attached to the rank held at the date of retirement. The annual benefit shall be increased by 2.50% 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 ten years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3% of the original pension, and 3% compounded annually thereafter. Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or older with ten or more years of creditable service are entitled to receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total salary of the firefighter during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period. Firefighters’ salary for pension purposes is capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index or 3% compounded. The annual benefit shall be increased by 2.50% 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 ten years may retire at or after age 50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension starting date, whichever is later. Noncompounding increases occur annually, each January thereafter. The increase is the lesser of 3% or ½ of the change in the Consumer Price Index for the proceeding calendar year. - 58 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Contributions Covered employees are required to contribute 9.455% of their base salary to the Firefighters’ Pension Plan. If an employee leaves covered employment with fewer than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. Contributions are recognized when due pursuant to formal commitments, as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the Firefighters’ Pension Plan. The costs of administering the Firefighters’ Pension Plan are financed through investment earnings. The Village is required to finance the Firefighters’ Pension Plan as actuarially determined by an enrolled actuary. Effective January 1, 2011, the Village has until the year 2040 to fund 90% of the past service cost for the Firefighters’ Pension Plan. The Village has chosen a policy to fund 100% of the past service costs by 2040. For the year ended December 31, 2020, the Village’s contribution was 57.70% of covered payroll. Investment Policy The Firefighters’ Pension Fund’s (the Fund) investment policy authorizes the Fund to invest in all investments allowed by ILCS and require the Fund’s Board of Trustees to adopt an investment policy which can be amended by a majority vote of the Board of Trustees. The Fund’s investment policy authorizes the Fund to make deposits/invest 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 Government or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, investment-grade corporate bonds and The Illinois Funds. The Fund 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, Illinois insurance company general and separate accounts, mutual funds, corporate equity and corporate debt securities, and real estate investment trusts. The investment policy was modified during the year ended December 31, 2020, changes related to updating performance benchmarks, target allocation, and language regarding the Illinois Sustainable Investing Act. - 59 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Investment Policy (Continued) The Fund’s investment policy in accordance with ILCS establishes the following target allocation across asset classes: Asset Class Range Target Long-Term Expected Real Rate of Return Large cap domestic equity 22% to 65% 42% 5.8% Small cap domestic equity 0% to 26% 12% 7.6% International equity 0% to 13% 6% 7.1% Fixed income 35% to 45% 40% 1.4% The long-term expected real rates of return are net of a 2.20% factor for inflation and investment expense. ILCS limits the 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 long-term expected rate of return on pension plan in vestments 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 retu rn 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 or geometric real rates of return excluding inflation for each major asset class included in the Fund’s target asset allocation as of December 31, 2020 are listed in the table above. Concentrations There are no significant investments (other than United States Government guaranteed obligations, municipal bonds, and corporate bonds) in any one organization that represent 5% or more of the Fund’s investments. - 60 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Rate of Return For the year ended December 31, 2020, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 14.93%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of bank failure, the Fund’s deposits may not be returned to it. The Fund’s investment policy requires all bank balances to be covered by federal depository insurance or collateralized by the financial institutions. All deposits at December 31, 2020 are covered by federal depository insurance. Interest Rate Risk The following table presents the investments and maturities of the Fund’s debt securities as of December 31, 2020: Investment Maturities (in Years) Investment Type Fair Value Less Than 1 1-5 6-10 Greater than 10 U.S. Treasury obligations $ 1,447,930 $ - $ 524,602 $ 923,328 $ - Certificate of deposits 378,260 - 230,139 148,121 - U.S. agency obligations 7,526,748 302,414 2,051,830 5,172,504 - Corporate bonds 1,857,370 280,604 679,578 897,188 - State and local obligations 1,517,651 - 633,385 730,771 153,495 TOTAL $ 12,727,959 $ 583,018 $ 4,119,534 $ 7,871,912 $ 153,495 The Fund has the following recurring fair value measurements as of December 31, 2020: the U.S. agency obligations, municipal bonds, corporate bonds, and certificate of deposits are valued using quoted matrix pricing models (Level 2 inputs). The U.S. Treasury obligations and mutual funds use Level 1 inputs. In accordance with its investment policy, the Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for short and long-term cash flow needs while providing a reasonable rate of return based on the current market. The Fund’s investment policy indicates the average maturity/duration of the portfolio will be managed based on the existing interest rate environment, and under most circumstances will be maintained at approximately five years and will range from two to seven years. - 61 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Credit Risk The Firefighters’ Pension Fund limits its exposure to credit risk, the risk that the issuer of a debt security will not pay its par value upon maturity, by investing in obligations guaranteed by the United States Government, securities issued by agencies of the United States Government that are explicitly or implicitly guaranteed by the United States Government and investment grade corporate bonds rated at or above Baa3 by Moody’s. The U.S. agency obligations are rated Aaa. The corporate bonds are rated from AAA to A3. The state and local obligations and are either not rated or rated from Aaa-A3. The certificate of deposits and U.S. Treasury obligations are not rated. Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to the investment, the Fund will not be able to recover the value of its investments that are in possession of an outside party. The Fund’s policy requires third-party safe keeping for all securities owned by the Fund. Discount Rate The discount rate used to measure the total pension liability at December 31, 2020 was 6.75%. 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 the 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 Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. - 62 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Changes in the Net Pension Liability (a) Total Pension (b) Plan Fiduciary (a) - (b) Net Pension Liability Net Position Liability BALANCES AT JANUARY 1, 2020 $ 52,392,618 $ 30,896,235 $ 21,496,383 Changes for the period Service cost 818,358 - 818,358 Interest 3,489,011 - 3,489,011 Difference between expected and actual experience 327,007 - 327,007 Changes in assumptions (307,978) - (307,978) Changes in benefit terms (3,043,861) - (3,043,861) Employer contributions - 1,834,554 (1,834,554) Employee contributions - 317,505 (317,505) Other contributions - - - Net investment income - 4,559,197 (4,559,197) Benefit payments and refunds - (3,043,861) 3,043,861 Administrative expense - (43,590) 43,590 Net changes 1,282,537 3,623,805 (2,341,268) BALANCES AT DECEMBER 31, 2020 $ 53,675,155 $ 34,520,040 $ 19,155,115 There were changes with respect to actuarial assumptions in the current year related mortality rates in 2020. - 63 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Actuarial Assumptions The total pension liability above was determined by an actuarial valuation using the following actuarial methods and assumptions. Actuarial valuation date December 31, 2020 Actuarial cost method Entry-age normal Assumptions Inflation 2.50% Salary increases 3.75% Interest rate 6.75% Cost of living adjustments 3.00% Asset valuation method Fair value The RP-2014 Mortality Table with a blue collar adjustment, with generational improvement scale MP-2020 applied from 2013 was used to measure mortality rates. 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 net pension liability of the Village calculated using the discount rate of 6.75% as well as what the Village’s net pension liability would be if it were 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 (5.75%) (6.75%) (7.75%) Net pension liability $ 26,034,103 $ 19,155,115 $ 13,477,596 - 64 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 12. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters’ Pension Plan (Continued) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended December 31, 2020, the Village recognized pension expense of $752,181. At December 31, 2020, the Village reported deferred outflo ws of resources and deferred inflows of resources related to the firefighters’ pension from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 245,255 $ 262,277 Changes in assumption 60,045 381,370 Net difference between projected and actual earnings on pension plan investments - 3,029,534 TOTAL $ 305,300 $ 3,673,181 Changes in the net pension liability related to the difference in actual and expected experience, or changes in assumptions regarding future events, are recognized in pension expense over the expected remaining service life of all employees (active and retired) in the plan. Differences in projected and actual earnings over the measurement period are recognized over a five-year period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to the firefighters’ pension will be recognized in pension expense as follows: Year Ending December 31, 2021 $ (1,089,933) 2022 (639,492) 2023 (1,137,402) 2024 (501,054) 2025 - Thereafter - TOTAL $ (3,367,881) - 65 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 13. SUBSEQUENT EVENT On April 27, 2021, the Village entered into an asset purchase agreement with Aqua, Illinois, Inc. (“Buyer”), to sell to Buyer substantially all of the assets that constitute the water system located solely within the five zones that lie outside the Village ’s boundaries (the “Acquired System”) for a purchase price of $12,500,000. - 66 - REQUIRED SUPPLEMENTARY INFORMATION 2020 Variance Original Final Over Budget Budget Actual (Under) REVENUES Intergovernmental 13,869,400$ 13,869,400$ 13,510,432$ (358,968)$ Utility taxes 6,125,000 6,125,000 5,794,806 (330,194) Licenses and permits 2,990,190 2,990,190 3,534,650 544,460 Charges for services 1,461,600 1,461,600 1,177,838 (283,762) Fines and penalties 403,395 403,395 343,288 (60,107) Investment income 415,000 415,000 433,308 18,308 Miscellaneous 237,800 237,800 259,258 21,458 Total revenues 25,502,385 25,502,385 25,053,580 (448,805) EXPENDITURES Current General government 4,302,715 4,302,715 3,621,996 (680,719) Public safety 17,792,275 17,792,275 16,244,626 (1,547,649) Public works 893,055 893,055 830,138 (62,917) Culture and recreation 994,410 994,410 824,878 (169,532) Total expenditures 23,982,455 23,982,455 21,521,638 (2,460,817) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,519,930 1,519,930 3,531,942 2,012,012 OTHER FINANCING SOURCES (USES) Transfers (out)(923,000) (923,000) (383,561) 539,439 Total other financing sources (uses)(923,000) (923,000) (383,561) 539,439 NET CHANGE IN FUND BALANCE 596,930$ 596,930$ 3,148,381 2,551,451$ FUND BALANCE, JANUARY 1 25,053,768 FUND BALANCE, DECEMBER 31 28,202,149$ VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For the Year Ended December 31, 2020 (See independent auditor's report.) - 67 - FISCAL YEAR ENDED DECEMBER 31,2014 2015 2016 2017 2018 2019 2020 Actuarially determined contribution 732,952$ 715,497$ 723,635$ 611,935$ 647,428$ 544,333$ 663,595$ Contributions in relation to the actuarially determined contribution 749,983 715,089 723,634 645,761 647,429 562,006 663,595 CONTRIBUTION DEFICIENCY (Excess)(17,031)$ 408$ 1$ (33,826)$ (1)$ (17,673)$ -$ Covered payroll 5,168,916$ 5,230,241$ 5,400,260$ 4,875,980$ 4,930,905$ 5,347,086$ 5,352,529$ Contributions as a percentage of covered payroll 14.51%13.67%13.40%13.24%13.13%10.51%12.40% Notes to Required Supplementary Information Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF EMPLOYER CONTRIBUTIONS Last Seven Fiscal Years ILLINOIS MUNICIPAL RETIREMENT FUND The information presented was determined as part of the actuarial valuation as of January 1 of the prior fiscal year.Additional information as of the latest actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was level percent of pay,closed,and the amortization period was 24 years;the asset valuation method was five-year smoothed market;and the significant actuarial assumptions were an investment rate of return at 7.50%annually,projected salary increases assumption of 3.35%to 14.25%compounded annually,and postretirement benefit increases of 2.50% compounded annually. (See independent auditor's report.) - 68 - FISCAL YEAR ENDED DECEMBER 31,2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Actuarially determined contribution 885,339$ 969,024$ 1,205,519$ 1,485,673$ 1,550,233$ 1,708,330$ 1,748,025$ 1,946,714$ 2,057,112$ 2,169,845$ Contribution in relation to the actuarially determined contribution 674,170 977,367 1,171,537 1,259,824 1,336,683 1,527,927 1,748,025 1,946,714 2,057,112 1,803,644 CONTRIBUTION DEFICIENCY (Excess)211,169$ (8,343)$ 33,982$ 225,849$ 213,550$ 180,403$ -$ -$ -$ 366,201$ Covered payroll 3,288,064$ 3,310,998$ 3,646,309$ 3,598,016$ 3,631,184$ 3,735,548$ 3,829,224$ 3,892,216$ 3,849,863$ 3,932,044$ Contributions as a percentage of covered payroll 20.50%29.52%32.13%35.01%36.81%40.90%45.65%50.02%53.43%45.87% Notes to the Required Supplementary Information The information presented was determined as part of the actuarial valuations as of January 1 of the prior fiscal year.Additional information as of the latest actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was level percent of pay,closed,and the amortization period was 21 years;the asset valuation method was at market value;and the significant actuarial assumptions were an investment rate of return of 6.75% annually, projected salary increase assumption of 3.75%, and postretirement benefit increases of 3.00% compounded annually. SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND VILLAGE OF OAK BROOK, ILLINOIS Last Ten Fiscal Years (See independent auditor's report.) - 69 - FISCAL YEAR ENDED DECEMBER 31, 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Actuarially determined contribution 1,082,677$ 1,065,173$ 1,144,966$ 1,698,405$ 1,826,637$ 2,015,441$ 2,080,231$ 2,064,689$ 2,150,924$ 2,194,631$ Contribution in relation to the actuarially determined contribution 995,110 1,001,528 1,057,081 1,570,742 1,414,530 1,801,476 2,080,231 2,064,689 2,150,924 1,834,554 CONTRIBUTION DEFICIENCY (Excess)87,567$ 63,645$ 87,885$ 127,663$ 412,107$ 213,965$ -$ -$ -$ 360,077$ Covered payroll 2,668,624$ 2,687,097$ 2,762,080$ 2,674,017$ 2,818,219$ 2,812,001$ 2,918,844$ 3,085,809$ 3,187,983$ 3,179,407$ Contributions as a percentage of 37.29%37.27%38.27%58.74%50.19%64.06%71.27%66.91%67.47%57.70% Notes to the Required Supplementary Information The information presented was determined as part of the actuarial valuations as of January 1 of the prior fiscal year.Additional information as of the latest actuarial valuation presented is as follows:the actuarial cost method was entry-age normal;the amortization method was level percent of pay,closed,and the amortization period was 21 years;the asset valuation method was at market value;and the significant actuarial assumptions were an investment rate of return of 6.75% annually, projected salary increase assumption of 3.75%, and postretirement benefit increases of 3.00% compounded annually. VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTERS' PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Last Ten Fiscal Years covered payroll (See independent auditor's report.) - 70 - MEASUREMENT DATE DECEMBER 31,2014 2015 2016 TOTAL PENSION LIABILITY Service cost 613,861$ 581,062$ 558,199$ Interest 2,465,082 2,615,047 2,706,946 Changes of benefit terms - - - Differences between expected and actual experience (770,401) (398,570) 243,794 Changes of assumptions 1,163,670 89,849 (135,521) Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) Net change in total pension liability 2,119,046 1,421,115 1,735,214 Total pension liability - beginning 33,237,409 35,356,455 36,777,570 TOTAL PENSION LIABILITY - ENDING 35,356,455$ 36,777,570$ 38,512,784$ PLAN FIDUCIARY NET POSITION Contributions - employer 749,983$ 715,089$ 723,634$ Contributions - member 238,409 238,021 243,012 Net investment income 1,874,762 159,375 2,199,050 Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) Other (294,611) 63,416 247,674 Net change in plan fiduciary net position 1,215,377 (290,372) 1,775,166 Plan fiduciary net position - beginning 30,916,185 32,131,562 31,841,190 PLAN FIDUCIARY NET POSITION - ENDING 32,131,562$ 31,841,190$ 33,616,356$ EMPLOYER'S NET PENSION LIABILITY 3,224,893$ 4,936,380$ 4,896,428$ Plan fiduciary net position as a percentage of the total pension liability 90.88%86.58%87.29% Covered payroll 5,168,916$ 5,230,241$ 5,400,260$ Employer's net pension liability as a percentage of covered payroll 62.39%94.38%90.67% 2015 - changes in assumptions related to investment rate of return, retirement age, and mortality rates 2016 - changes in assumptions related to retirement age and mortality rates 2017 - changes in assumptions related to inflation rates, salary rates, and mortality rates 2018 - changes in assumptions related to the investment rate of return Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled, information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS Last Six Fiscal Years - 71 - 2017 2018 2019 524,438$ 465,011$ 516,338$ 2,837,540 2,799,690 2,922,546 - - - (677,198) 711,157 389,071 (1,138,825) 1,073,505 - (1,882,278) (2,159,539) (2,026,957) (336,323) 2,889,824 1,800,998 38,512,784 38,176,461 41,066,285 38,176,461$ 41,066,285$ 42,867,283$ 645,761$ 647,429$ 562,006$ 348,030 222,216 240,618 5,792,968 (2,162,333) 6,770,446 (1,882,278) (2,159,539) (2,026,957) (989,852) 1,282,342 (7,610) 3,914,629 (2,169,885) 5,538,503 33,616,356 37,530,985 35,361,100 37,530,985$ 35,361,100$ 40,899,603$ 645,476$ 5,705,185$ 1,967,680$ 98.31%86.11%95.41% 4,875,980$ 4,930,905$ 5,347,086$ 13.24%115.70%36.80% (See independent auditor's report.) - 72 - MEASUREMENT DATE DECEMBER 31,2014 2015 2016 TOTAL PENSION LIABILITY Service cost 826,067$ 816,276$ 800,389$ Interest 3,141,175 3,338,238 3,563,145 Changes of benefit terms - - - Differences between expected and actual experience 1,279,682 (48,037) (856,825) Changes to actuarial assumptions - 1,597,133 96,439 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) Net change in total pension liability 2,958,231 3,356,924 1,238,309 Total pension liability - beginning 46,854,212 49,812,440 53,169,364 TOTAL PENSION LIABILITY - ENDING 49,812,443$ 53,169,364$ 54,407,673$ PLAN FIDUCIARY NET POSITION Contributions - employer 1,259,824$ 1,336,683$ 1,527,927$ Contributions - member 358,339 358,499 383,238 Net investment income 1,115,158 (429,967) 2,176,018 Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) Administrative expense (47,609) (38,647) (39,522) Net change in plan fiduciary net position 397,019 (1,120,118)1,682,822 Plan fiduciary net position - beginning 32,574,327 32,971,346 31,851,228 PLAN FIDUCIARY NET POSITION - ENDING 32,971,346$ 31,851,228$ 33,534,050$ EMPLOYER'S NET PENSION LIABILITY 16,841,097$ 21,318,136$ 20,873,623$ Plan fiduciary net position as a percentage of the total pension liability 66.19%59.91%61.63% Covered payroll 3,631,184$ 3,735,548$ 3,829,224$ Employer's net pension liability as a percentage of covered payroll 463.79%570.68%545.11% Changes in assumption from 2015 - 2020 relate to changes in mortality rates Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled, information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS Last Seven Fiscal Years - 73 - 2017 2018 2019 2020 833,296$ 890,871$ 852,541$ 869,540$ 3,650,633 3,902,722 4,041,408 4,215,181 - - 63,841 - (347,589) 199,802 778,897 (698,928) 1,964,218 (182,060) (196,672) (324,515) (2,315,047) (2,531,903) (2,904,890) (3,060,323) 3,785,511 2,279,432 2,635,125 1,000,955 54,407,673 58,193,184 60,472,616 63,107,741 58,193,184$ 60,472,616$ 63,107,741$ 64,108,696$ 1,748,025$ 1,946,714$ 2,057,112$ 1,803,644$ 386,727 410,316 378,699 521,151 4,461,837 (2,385,632) 6,529,172 4,427,403 (2,315,047) (2,531,903) (2,904,890) (3,060,323) (35,776) (54,667) (41,392) (38,098) 4,245,766 (2,615,172) 6,018,701 3,653,777 33,534,050 37,779,816 35,164,644 41,183,345 37,779,816$ 35,164,644$ 41,183,345$ 44,837,122$ 20,413,368$ 25,307,972$ 21,924,396$ 19,271,574$ 64.92%58.15%65.26%69.94% 3,892,216$ 3,849,863$ 3,932,044$ 4,179,054$ 524.47%657.37%557.58%461.15% (See independent auditor's report.) - 74 - MEASUREMENT DATE DECEMBER 31,2014 2015 2016 TOTAL PENSION LIABILITY Service cost 746,748$ 746,748$ 756,771$ Interest 2,926,848 3,040,301 3,229,650 Changes of benefit terms - - - Differences between expected and actual experience 507,637 163,758 (569,891) Changes to actuarial assumptions - 1,474,675 90,432 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) Net change in total pension liability 1,795,742 2,810,076 861,692 Total pension liability - beginning 43,806,712 45,602,454 48,412,530 TOTAL PENSION LIABILITY - ENDING 45,602,454$ 48,412,530$ 49,274,222$ PLAN FIDUCIARY NET POSITION Contributions - employer 1,570,742$ 1,414,530$ 1,801,476$ Contributions - member 267,458 269,349 273,775 Net investment income 1,178,816 (256,566) 1,794,320 Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) Administrative expense (75,386) (46,351) (40,567) Net change in plan fiduciary net position 556,139 (1,234,444)1,183,734 Plan fiduciary net position - beginning 24,489,991 25,046,130 23,811,686 PLAN FIDUCIARY NET POSITION - ENDING 25,046,130$ 23,811,686$ 24,995,420$ EMPLOYER'S NET PENSION LIABILITY 20,556,324$ 24,600,844$ 24,278,802$ Plan fiduciary net position as a percentage of the total pension liability 54.92%49.18%50.73% Covered payroll 2,818,219$ 2,812,001$ 2,918,844$ Employer's net pension liability as a percentage of covered payroll 729.41%874.85%831.80% Changes in assumption from 2015 - 2020 relate to changes in mortality rates Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled, information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTERS' PENSION FUND SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION LIABILITY AND RELATED RATIOS Last Seven Fiscal Years - 75 - 2017 2018 2019 2020 782,892$ 786,115$ 807,975$ 818,358$ 3,287,875 3,347,278 3,420,108 3,489,011 - - 64,336 - (768,292) (96,554) (139,992) 327,007 300,225 (156,879) (175,274) (307,978) (2,695,712) (2,756,038) (2,889,667) (3,043,861) 906,988 1,123,922 1,087,486 1,282,537 49,274,222 50,181,210 51,305,132 52,392,618 50,181,210$ 51,305,132$ 52,392,618$ 53,675,155$ 2,080,231$ 2,064,689$ 2,150,924$ 1,834,554$ 295,477 300,087 308,176 317,505 3,459,107 (1,255,489) 4,971,530 4,559,197 (2,695,712) (2,756,038) (2,889,667) (3,043,861) (41,034) (45,569) (45,897) (43,590) 3,098,069 (1,692,320) 4,495,066 3,623,805 24,995,420 28,093,489 26,401,169 30,896,235 28,093,489$ 26,401,169$ 30,896,235$ 34,520,040$ 22,087,721$ 24,903,963$ 21,496,383$ 19,155,115$ 55.98%51.46%58.97%64.31% 3,085,809$ 3,187,983$ 3,179,407$ 3,240,175$ 715.78%781.18%676.11%591.18% (See independent auditor's report.) - 76 - MEASUREMENT DATE DECEMBER 31, 2018 2019 2020 TOTAL OPEB LIABILITY Service cost 325,218$ 306,833$ 399,277$ Interest 205,569 239,677 212,958 Differences between expected and actual experience 79,566 (508,380) (7,464) Changes in assumptions (315,894) 791,275 765,452 Implicit benefit payments (209,110) (229,223) (212,036) Net change in total OPEB liability 85,349 600,182 1,158,187 Total OPEB liability - beginning 5,552,825 5,638,174 6,238,356 TOTAL OPEB LIABILITY - ENDING 5,638,174$ 6,238,356$ 7,396,543$ Covered payroll 11,490,969$ 11,909,451$ 12,267,429$ Employers total OPEB liability as a percentage of covered payroll 49.07%52.38%60.29% 2019 and 2018 changes in assumptions -There was a change with respect to actuarial assumptions from the prior year to reflect revised expectations with respect to the discount and mortality rates. 2020 changes in assumptions -There was a change with respect to actuarial assumptions from the prior year to reflect revised expectations with respect to discount rates. Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled, information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF CHANGES IN THE EMPLOYER'S TOTAL OPEB LIABILITY AND RELATED RATIOS OTHER POSTRETIREMENT BENEFIT PLAN Last Three Fiscal Years (See independent auditor's report.) - 77 - MEASUREMENT DATE DECEMBER 31,2014 2015 2016 2017 2018 2019 2020 Annual money-weighted rate of return, net of investment expense 5.54%(1.32%)6.89%13.35%(6.34%)18.71%10.86% Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS POLICE PENSION FUND Last Seven Fiscal Years SCHEDULE OF INVESTMENT RETURNS (See independent auditor's report.) - 78 - MEASUREMENT DATE DECEMBER 31,2014 2015 2016 2017 2018 2019 2020 Annual money-weighted rate of return, net of investment expense 5.10%(1.05%)7.62%13.95%(4.51%)19.01%14.99% Ultimately,this schedule should present information for the last ten years.However,until ten years of information can be compiled,information will be presented for as many years as is available. VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTERS' PENSION FUND SCHEDULE OF INVESTMENT RETURNS Last Seven Fiscal Years (See independent auditor's report.) - 79 - - 73 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2020 1. BUDGETARY INFORMATION Budgets are adopted on a basis consistent with GAAP. Annual budgets are adopted for the General, Special Revenue, and Capital Projects Funds on the modified accrual basis. Enterprise, Internal Service, and Pension Trust Funds are on the accrual basis and a current financial resources measurement focus except the Village does not budget depreciation bu t does budget capital outlay. The annual budget is legally enacted and provides for a legal level of control at the program level. All annual appropriations lapse at f iscal year end. The Village does not adopt a budget for the Foreign Fire Insurance 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 GAAP. 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 approv ed by the Village Board of Trustees. 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 w hole. - 80 - COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES MAJOR GOVERNMENTAL FUNDS General Fund - to account for resources traditionally associated with governments which are not accounted for in another fund. Infrastructure Fund - to account for revenues restricted for and expenditures relative to the construction and maintenance of roadways, drainage, and safety pathway systems. The Promenade TIF Fund - to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. Variance Original Final Over 2019 Budget Budget Actual (Under)Actual REVENUES Intergovernmental Municipal sales tax 12,502,000$ 12,502,000$ 11,507,051$ (994,949)$ 12,516,616$ Illinois state income and use tax 1,024,500 1,024,500 1,213,231 188,731 1,105,045 Corporate personal property replacement taxes 292,500 292,500 305,237 12,737 332,383 York Township road and bridge tax 35,000 35,000 36,821 1,821 36,018 Grants 15,400 15,400 448,092 432,692 27,582 Total intergovernmental 13,869,400 13,869,400 13,510,432 (358,968) 14,017,644 Utility taxes 6,125,000 6,125,000 5,794,806 (330,194) 6,286,242 Licenses and permits 2,990,190 2,990,190 3,534,650 544,460 3,640,730 Charges for services 1,461,600 1,461,600 1,177,838 (283,762) 1,436,294 Fines and penalties 403,395 403,395 343,288 (60,107) 201,054 Investment income 415,000 415,000 433,308 18,308 613,024 Miscellaneous Franchise fees 210,000 210,000 202,660 (7,340) 211,737 Other 27,800 27,800 56,598 28,798 300,035 Total miscellaneous 237,800 237,800 259,258 21,458 511,772 TOTAL REVENUES 25,502,385$ 25,502,385$ 25,053,580$ (448,805)$ 26,706,760$ 2020 (With Comparative Actual) VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF REVENUES - BUDGET AND ACTUAL For the Year Ended December 31, 2020 (See independent auditor's report.) - 81 - Variance Original Final Over 2019 Budget Budget Actual (Under)Actual GENERAL GOVERNMENT Legislative and general management Board of trustees Personnel 90,915$ 90,915$ 71,658$ (19,257)$ 82,883$ Materials and supplies 2,000 2,000 214 (1,786) 525 Operation and contractual 44,900 44,900 14,671 (30,229) 48,417 Total board of trustees 137,815 137,815 86,543 (51,272) 131,825 Village clerk Personnel 155,235 155,235 144,912 (10,323) 138,735 Materials and supplies 3,135 3,135 1,787 (1,348) 1,786 Operation and contractual 11,100 11,100 7,183 (3,917) 4,672 Total Village clerk 169,470 169,470 153,882 (15,588) 145,193 Legal Materials and supplies 100 100 - (100) - Operation and contractual 249,000 305,995 305,338 (657) 271,060 Total legal 249,100 306,095 305,338 (757) 271,060 General management Personnel 327,490 327,490 316,647 (10,843) 320,406 Materials and supplies 45,825 45,825 28,079 (17,746) 44,930 Operation and contractual 11,495 11,495 9,771 (1,724) 11,737 Total general management 384,810 384,810 354,497 (30,313) 377,073 Human resources Personnel 165,125 171,500 149,570 (21,930) 128,099 Materials and supplies 3,050 3,050 1,119 (1,931) 2,501 Operation and contractual 59,500 53,125 45,953 (7,172) 71,317 Total human resources 227,675 227,675 196,642 (31,033) 201,917 Risk management Personnel 24,945 26,345 26,329 (16) 23,557 Operation and contractual 290,500 232,105 226,422 (5,683) 285,968 Total risk management 315,445 258,450 252,751 (5,699) 309,525 Emergency management Materials and supplies 500 2,400 2,400 - 2,320 Operational and contractual 11,950 10,050 9,962 (88) 10,053 Total emergency management 12,450 12,450 12,362 (88) 12,373 SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND VILLAGE OF OAK BROOK, ILLINOIS For the Year Ended December 31, 2020 (With Comparative Actual) 2020 (This schedule is continued on the following pages.) - 82 - Variance Original Final Over 2019 Budget Budget Actual (Under)Actual GENERAL GOVERNMENT (Continued) Legislative and general management (Continued) Information systems Personnel 404,940$ 404,940$ 341,412$ (63,528)$ 353,025$ Materials and supplies 29,600 29,600 29,820 220 34,389 Operation and contractual 460,280 460,280 398,424 (61,856) 417,887 Capital 100,000 100,000 74,597 (25,403) 182,760 Total information systems 994,820 994,820 844,253 (150,567) 988,061 Customer service Personnel 65,250 65,250 28,746 (36,504) 59,659 Operation and contractual - - 125 125 1,287 Total customer service 65,250 65,250 28,871 (36,379) 60,946 Total legislative and general management 2,556,835 2,556,835 2,235,139 (321,696) 2,497,973 Community development management Administration Personnel 415,185 415,185 381,146 (34,039) 381,234 Materials and supplies 1,175 1,175 918 (257) 780 Operation and contractual 2,850 2,850 2,717 (133) 6,535 Total administration 419,210 419,210 384,781 (34,429) 388,549 Code enforcement Personnel 573,440 505,820 504,801 (1,019) 547,721 Materials and supplies 4,850 4,850 1,558 (3,292) 4,366 Operation and contractual 42,050 157,605 157,518 (87) 51,122 Total code enforcement 620,340 668,275 663,877 (4,398) 603,209 Total community development management 1,039,550 1,087,485 1,048,658 (38,827) 991,758 Financial services Financial services management Personnel 150,645 150,645 148,405 (2,240) 141,962 Materials and supplies - - - - 445 Operation and contractual 66,695 66,695 58,266 (8,429) 57,793 Total financial services management 217,340 217,340 206,671 (10,669) 200,200 Accounting and reporting Personnel 362,440 362,440 354,432 (8,008) 343,711 Materials and supplies 3,250 3,250 2,512 (738) 3,130 Operation and contractual 34,200 34,200 23,862 (10,338) 29,357 Total accounting and reporting 399,890 399,890 380,806 (19,084) 376,198 2020 VILLAGE OF OAK BROOK, ILLINOIS For the Year Ended December 31, 2020 (With Comparative Actual) SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND (This schedule is continued on the following pages.) - 83 - Variance Original Final Over 2019 Budget Budget Actual (Under)Actual 2020 VILLAGE OF OAK BROOK, ILLINOIS For the Year Ended December 31, 2020 (With Comparative Actual) SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND GENERAL GOVERNMENT (Continued) Financial services (Continued) PSEBA benefits Personnel 41,000$ 41,000$ 40,726$ (274)$ 39,116$ Purchasing Personnel 105,825 105,825 102,932 (2,893) 98,733 Materials and supplies 17,400 17,400 13,697 (3,703) 20,070 Total purchasing 123,225 123,225 116,629 (6,596) 118,803 Total financial services 781,455 781,455 744,832 (36,623) 734,317 Municipal building improvements Operation and contractual - - - - 5,054 Capital 411,500 363,565 79,992 (283,573) 450,792 Total municipal building improvements 411,500 363,565 79,992 (283,573) 455,846 Expenditure reimbursements paid to other funds 139,770 139,770 139,770 - 131,100 Subtotal general government 4,929,110 4,929,110 4,248,391 (680,719) 4,810,994 Less reimbursements from other funds (626,395) (626,395) (626,395) - (632,210) Total general government 4,302,715 4,302,715 3,621,996 (680,719) 4,178,784 PUBLIC SAFETY Police department Police services management Personnel 633,365 629,070 572,739 (56,331) 601,288 Materials and supplies 3,000 3,000 1,491 (1,509) 4,454 Operation and contractual 58,090 62,385 61,470 (915) 40,895 Total police services management 694,455 694,455 635,700 (58,755) 646,637 Police field services Personnel 5,369,970 5,369,585 5,016,855 (352,730) 5,091,413 Materials and supplies 10,700 10,700 5,327 (5,373) 14,873 Operation and contractual 275,790 275,790 265,369 (10,421) 201,935 Capital outlay 60,200 60,585 60,585 - 263,887 Total police field services 5,716,660 5,716,660 5,348,136 (368,524) 5,572,108 Police auxiliary services Personnel 97,505 97,505 27,963 (69,542) 73,429 Operation and contractual 1,875 1,875 - (1,875) 1,632 Total police auxiliary services 99,380 99,380 27,963 (71,417) 75,061 (This schedule is continued on the following pages.) - 84 - Variance Original Final Over 2019 Budget Budget Actual (Under)Actual 2020 VILLAGE OF OAK BROOK, ILLINOIS For the Year Ended December 31, 2020 (With Comparative Actual) SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND PUBLIC SAFETY (Continued) Police department (Continued) Support services general Personnel 953,105$ 949,360$ 867,109$ (82,251)$ 737,376$ Materials and supplies 66,100 69,845 59,321 (10,524) 55,843 Operation and contractual 3,750 3,750 3,314 (436) 2,356 Total support services general 1,022,955 1,022,955 929,744 (93,211) 795,575 Support services detectives Personnel 1,168,715 1,168,715 1,047,372 (121,343) 1,164,127 Materials and supplies 2,400 2,400 2,490 90 2,143 Operation and contractual 18,990 18,990 19,452 462 20,590 Total support services detectives 1,190,105 1,190,105 1,069,314 (120,791) 1,186,860 Support services records Personnel 250,050 245,070 185,268 (59,802) 239,363 Materials and supplies 12,500 17,480 13,365 (4,115) 17,871 Operation and contractual 507,800 507,800 373,350 (134,450) 488,257 Total support services records 770,350 770,350 571,983 (198,367) 745,491 Total police department 9,493,905 9,493,905 8,582,840 (911,065) 9,021,732 Fire department Fire, rescue, and EMS operations Personnel 6,149,400 6,143,345 5,897,758 (245,587) 6,115,859 Materials and supplies 56,290 59,110 36,546 (22,564) 55,646 Operation and contractual 258,565 261,800 228,744 (33,056) 256,630 Capital outlay 50,630 50,630 43,719 (6,911) 74,347 Total fire, rescue, and EMS operations 6,514,885 6,514,885 6,206,767 (308,118) 6,502,482 Fire services management Personnel 371,330 371,330 321,258 (50,072) 357,508 Materials and supplies 5,645 5,645 1,847 (3,798) 1,994 Operation and contractual 200,045 200,045 128,582 (71,463) 192,017 Other 10,000 10,000 6,555 (3,445) 8,803 Total fire services management 587,020 587,020 458,242 (128,778) 560,322 Special teams operations Materials and supplies 20,105 20,105 13,824 (6,281) 21,147 Operation and contractual 13,685 13,685 12,526 (1,159) 7,195 Capital outlay 6,000 6,000 5,869 (131) - Total special teams operations 39,790 39,790 32,219 (7,571) 28,342 (This schedule is continued on the following pages.) - 85 - Variance Original Final Over 2019 Budget Budget Actual (Under)Actual 2020 VILLAGE OF OAK BROOK, ILLINOIS For the Year Ended December 31, 2020 (With Comparative Actual) SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND PUBLIC SAFETY (Continued) Fire department Rescue and fire training Personnel 41,395$ 41,395$ 11,152$ (30,243)$ 39,841$ Materials and supplies 925 925 - (925) 50 Operation and contractual 2,000 2,000 - (2,000) - Total rescue and fire training 44,320 44,320 11,152 (33,168) 39,891 Emergency medical services Personnel 31,780 31,780 19,660 (12,120) 21,537 Materials and supplies 25,475 34,435 33,017 (1,418) 19,070 Operation and contractual 795,465 795,465 785,705 (9,760) 839,767 Capital outlay 59,700 50,740 13,070 (37,670) 60,596 Total emergency medical services 912,420 912,420 851,452 (60,968) 940,970 Fire prevention and public safety Personnel 184,170 184,170 97,443 (86,727) 123,395 Materials and supplies 9,965 9,965 3,272 (6,693) 7,786 Operation and contractual 5,800 5,800 1,239 (4,561) 832 Total fire prevention and public safety 199,935 199,935 101,954 (97,981) 132,013 Total fire department 8,298,370 8,298,370 7,661,786 (636,584) 8,204,020 Total public safety 17,792,275 17,792,275 16,244,626 (1,547,649) 17,225,752 PUBLIC WORKS Mosquito control Operation and contractual 87,050 87,050 64,617 (22,433) 67,174 Total mosquito control 87,050 87,050 64,617 (22,433) 67,174 Buildings and grounds Personnel 269,105 269,105 264,626 (4,479) 233,707 Materials and supplies 52,180 66,025 63,939 (2,086) 30,395 Operation and contractual 298,135 284,290 264,806 (19,484) 344,921 Capital outlay - - - - 1,200 Total buildings and grounds 619,420 619,420 593,371 (26,049) 610,223 Forestry Personnel 14,360 14,360 1,392 (12,968) 21,361 Materials and supplies 2,850 2,850 1,247 (1,603) 406 Operation and contractual 169,375 169,375 169,511 136 199,649 Total forestry 186,585 186,585 172,150 (14,435) 221,416 Total public works 893,055 893,055 830,138 (62,917) 898,813 (This schedule is continued on the following page.) - 86 - Variance Original Final Over 2019 Budget Budget Actual (Under)Actual 2020 VILLAGE OF OAK BROOK, ILLINOIS For the Year Ended December 31, 2020 (With Comparative Actual) SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) GENERAL FUND CULTURE AND RECREATION Library general operations Personnel 350,150$ 346,130$ 314,461$ (31,669)$ 312,953$ Materials and supplies 16,300 16,300 14,628 (1,672) 13,149 Operation and contractual 80,155 80,155 64,595 (15,560) 69,737 Total library general operations 446,605 442,585 393,684 (48,901) 395,839 Library technical services Personnel 104,450 108,470 108,182 (288) 97,818 Materials and supplies 3,300 3,300 3,171 (129) 3,299 Operation and contractual 1,070 1,070 525 (545) 676 Total library technical services 108,820 112,840 111,878 (962) 101,793 Library reference and adult services Personnel 166,905 166,905 58,541 (108,364) 154,360 Materials and supplies 107,200 107,200 105,651 (1,549) 101,830 Operation and contractual 3,500 3,500 3,500 - 3,469 Total library reference and adult services 277,605 277,605 167,692 (109,913) 259,659 Library youth services Personnel 122,030 122,030 112,735 (9,295) 114,427 Materials and supplies 33,350 33,350 32,902 (448) 30,719 Operation and contractual 6,000 6,000 5,987 (13) 4,250 Total library youth services 161,380 161,380 151,624 (9,756) 149,396 Total culture and recreation 994,410 994,410 824,878 (169,532) 906,687 TOTAL EXPENDITURES 23,982,455$ 23,982,455$ 21,521,638$ (2,460,817)$ 23,210,036$ (See independent auditor's report.) - 87 - Variance Original Final Over Budget Budget Actual (Under)2019 REVENUES Non-home rule sales tax 5,615,000$ 5,615,000$ 4,914,208$ (700,792)$ 5,642,898$ Investment income 125,000 125,000 93,957 (31,043) 248,179 Miscellaneous 2,500 2,500 144 (2,356) 14,022 Charges for service 1,000 1,000 335 (665) 1,556 Total revenues 5,743,500 5,743,500 5,008,644 (734,856) 5,906,655 EXPENDITURES General government Geographic information Personnel 20,755 20,755 19,435 (1,320) 18,566 Materials and supplies 1,700 1,700 445 (1,255) 288 Operation and contractual 154,035 154,035 123,627 (30,408) 149,101 Total geographic information 176,490 176,490 143,507 (32,983) 167,955 Total general government 176,490 176,490 143,507 (32,983) 167,955 Public works Management Personnel 449,585 449,585 441,327 (8,258) 420,551 Materials and supplies 7,945 7,945 4,078 (3,867) 2,649 Operation and contractual 117,960 117,960 96,761 (21,199) 96,009 Total management 575,490 575,490 542,166 (33,324) 519,209 Streets - general salaries Personnel 733,235 733,235 674,286 (58,949) 661,067 Materials and supplies 2,525 2,525 1,800 (725) 2,352 Operation and contractual 3,125 3,125 2,330 (795) 2,817 Total streets - general salaries 738,885 738,885 678,416 (60,469) 666,236 Streets and traffic maintenance Materials and supplies 87,515 87,515 35,268 (52,247) 31,040 Operation and contractual 646,455 646,455 526,931 (119,524) 387,597 Total streets and traffic maintenance 733,970 733,970 562,199 (171,771) 418,637 Snow removal Personnel 85,135 85,135 35,725 (49,410) 67,247 Materials and supplies 120,160 120,160 98,802 (21,358) 94,956 Operation and contractual 44,960 44,960 34,780 (10,180) 45,650 Total snow removal 250,255 250,255 169,307 (80,948) 207,853 2020 INFRASTRUCTURE FUND VILLAGE OF OAK BROOK, ILLINOIS (With Comparative Actual) For the Year Ended December 31, 2020 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL SCHEDULE OF REVENUES, EXPENDITURES, AND (This schedule is continued on the following page.) - 88 - Variance Original Final Over Budget Budget Actual (Under)2019 EXPENDITURES Public works Drainage maintenance Materials and supplies 21,000$ 7,615$ 7,614$ (1)$ 5,553$ Operation and contractual 64,500 74,700 74,319 (381) 78,617 Capital 1,971,845 2,256,680 2,256,678 (2) 2,105,049 Total drainage maintenance 2,057,345 2,338,995 2,338,611 (384) 2,189,219 Safe pathway maintenance Materials and supplies 11,000 11,000 128 (10,872) 475 Operation and contractual 23,865 23,865 13,385 (10,480) 18,295 Capital - - 100 100 2,393 Total safe pathway maintenance 34,865 34,865 13,613 (21,252) 21,163 Engineering and capital projects engineering Personnel 100,830 100,830 92,948 (7,882) 95,359 Materials and supplies 1,450 1,450 - (1,450) - Operation and contractual 391,890 391,890 317,557 (74,333) 337,180 Total engineering and capital projects engineering 494,170 494,170 410,505 (83,665) 432,539 Roadway improvements Operation and contractual 410,000 410,000 138,990 (271,010) 537,274 Intergovernmental agreements 8,248,245 7,966,595 2,236,548 (5,730,047) 2,546,469 Total roadway improvements 8,658,245 8,376,595 2,375,538 (6,001,057) 3,083,743 Reimbursements from other funds Reimbursements from other funds (359,380) (359,380) (359,380) - (333,445) Reimbursements paid to other funds 162,300 162,300 162,300 - 161,535 Total reimbursements from other funds (197,080) (197,080) (197,080) - (171,910) Total public works 13,346,145 13,346,145 6,893,275 (6,452,870) 7,366,689 Total expenditures 13,522,635 13,522,635 7,036,782 (6,485,853) 7,534,644 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (7,779,135) (7,779,135) (2,028,138) 5,750,997 (1,627,989) OTHER FINANCING SOURCES (USES) Transfers in 1,653,125 1,653,125 971,212 (681,913) 216,125 Total other financing sources (uses) 1,653,125 1,653,125 971,212 (681,913) 216,125 NET CHANGE IN FUND BALANCE (6,126,010)$ (6,126,010)$ (1,056,926) 5,069,084$ (1,411,864) FUND BALANCE, JANUARY 1 8,038,113 9,449,977 FUND BALANCE, DECEMBER 31 6,981,187$ 8,038,113$ (With Comparative Actual) 2020 VILLAGE OF OAK BROOK, ILLINOIS INFRASTRUCTURE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Continued) For the Year Ended December 31, 2020 (See independent auditor's report.) - 89 - Variance Original Final Over Budget Budget Actual (Under)2019 REVENUES Municipal sale tax 95,000$ 95,000$ 82,220$ (12,780)$ 96,992$ Property tax 380,000 380,000 414,544 34,544 412,066 Investment income 1,500 1,500 545 (955) 2,379 Total revenues 476,500 476,500 497,309 20,809 511,437 EXPENDITURES Current General government 3,890 4,305 4,303 (2) 3,748 Debt service Principal 280,000 305,000 305,000 - 217,000 Interest and fiscal agent fees 224,900 224,900 224,900 - 243,980 Total expenditures 508,790 534,205 534,203 (2) 464,728 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (32,290) (57,705) (36,894) 20,811 46,709 NET CHANGE IN FUND BALANCE (32,290)$ (57,705)$ (36,894) 20,811$ 46,709 FUND BALANCE, JANUARY 1 304,194 257,485 FUND BALANCE, DECEMBER 31 267,300$ 304,194$ (With Comparative Actual) 2020 VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PROMENADE TIF FUND For the Year Ended December 31, 2020 (See independent auditor's report.) - 90 - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Motor Fuel Tax Fund - to account for state gasoline tax allocations restricted for local roadway program expenditures. Hotel/Motel Tax Fund - to account for local hotel/motel tax receipts restricted for promoting tourism and conventions in the Village. 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. Motor Hotel/Motel Foreign Fire Fuel Tax Tax Insurance Tax Total Cash and investments 673,494$ 4,570,227$ 207,446$ 5,451,167$ Receivables Allotments 26,169 - - 26,169 Accrued interest 275 21,419 - 21,694 Other - 550,577 - 550,577 TOTAL ASSETS 699,938$ 5,142,223$ 207,446$ 6,049,607$ LIABILITIES Accounts payable -$ 161,415$ -$ 161,415$ Total liabilities - 161,415 - 161,415 DEFERRED INFLOWS OF RESOURCES Unavailable other receivables - 500,000 - 500,000 Total deferred inflows of resources - 500,000 - 500,000 FUND BALANCES Restricted Highways and streets 699,938 - - 699,938 Public safety - - 207,446 207,446 Culture and recreation - 4,480,808 - 4,480,808 Total fund balances 699,938 4,480,808 207,446 5,388,192 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 699,938$ 4,642,223$ 207,446$ 5,549,607$ OF RESOURCES, AND FUND BALANCES Special Revenue ASSETS LIABILITIES, DEFERRED INFLOWS VILLAGE OF OAK BROOK, ILLINOIS COMBINING BALANCE SHEET December 31, 2020 (See independent auditor's report.) - 91 - Motor Hotel/Motel Foreign Fire Fuel Tax Tax Insurance Tax Total REVENUES Intergovernmental 460,046$ -$ 70,040$ 530,086$ Hotel/motel taxes - 458,752 - 458,752 Investment income 7,895 85,653 114 93,662 Miscellaneous - 25,526 7,066 32,592 Total revenues 467,941 569,931 77,220 1,115,092 EXPENDITURES Current General government - 74,715 - 74,715 Public safety - - 52,928 52,928 Culture and recreation - 1,326,256 - 1,326,256 Total expenditures - 1,400,971 52,928 1,453,899 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 467,941 (831,040) 24,292 (338,807) OTHER FINANCING SOURCES (USES) Transfers (out)(848,233) (122,979) - (971,212) Total other financing sources (uses)(848,233) (122,979) - (971,212) NET CHANGE IN FUND BALANCES (380,292) (954,019) 24,292 (1,310,019) FUND BALANCES, JANUARY 1 1,080,230 5,434,827 183,154 6,698,211 FUND BALANCES, DECEMBER 31 699,938$ 4,480,808$ 207,446$ 5,388,192$ Special Revenue VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2020 (See independent auditor's report.) - 92 - Variance Original Final Over Budget Budget Actual (Under)2019 REVENUES Intergovernmental 314,250$ 314,250$ 460,046$ 145,796$ 258,609$ Fines, forfeitures, and penalties - - - - 2,322 Investment income 5,000 5,000 7,895 2,895 21,376 Total revenues 319,250 319,250 467,941 148,691 282,307 EXPENDITURES None - - - - - Total expenditures - - - - - EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 319,250 319,250 467,941 148,691 282,307 OTHER FINANCING SOURCES (USES) Transfers (out)(1,350,000) (1,350,000) (848,233) 501,767 - Total other financing sources (uses)(1,350,000) (1,350,000) (848,233) 501,767 - NET CHANGE IN FUND BALANCE (1,030,750)$ (1,030,750)$ (380,292) 650,458$ 282,307 FUND BALANCE, JANUARY 1 1,080,230 797,923 FUND BALANCE, DECEMBER 31 699,938$ 1,080,230$ (With Comparative Actual) 2020 VILLAGE OF OAK BROOK, ILLINOIS MOTOR FUEL TAX FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020 (See independent auditor's report.) - 93 - Variance Original Final Over Budget Budget Actual (Under) REVENUES Hotel/motel taxes 1,212,500$ 1,212,500$ 458,752$ (753,748)$ Investment income 75,000 75,000 85,653 10,653 Miscellaneous - - 25,526 25,526 Total revenues 1,287,500 1,287,500 569,931 (717,569) EXPENDITURES Current General government 74,715 74,715 74,715 - Culture and recreation 1,217,010 1,432,155 1,326,256 (105,899) Total expenditures 1,291,725 1,506,870 1,400,971 (105,899) INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (4,225) (219,370) (831,040) (611,670) TRANSFERS Transfers (out)(338,125) (122,980) (122,979) 1 Total transfers (338,125) (122,980) (122,979) 1 NET CHANGE IN FUND BALANCE (342,350)$ (342,350)$ (954,019) (611,669)$ FUND BALANCE, JANUARY 1 5,434,827 FUND BALANCE, DECEMBER 31 4,480,808$ 2020 VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOTEL/MOTEL TAX FUND For the Year Ended December 31, 2020 (See independent auditor's report.) - 94 - MAJOR ENTERPRISE FUNDS 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. Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING REVENUES Charges for services Water sales 10,302,525$ 10,302,525$ 9,707,989$ (594,536)$ 9,595,416$ Unmetered sales 30,000 30,000 88,865 58,865 48,218 Water tap on charges 100,000 100,000 22,120 (77,880) 248,160 Meter fees and special services 50,000 50,000 39,251 (10,749) 60,762 Miscellaneous 84,200 84,200 28,124 (56,076) 88,252 Total operating revenues 10,566,725 10,566,725 9,886,349 (680,376) 10,040,808 OPERATING EXPENSES Operation of facilities 13,596,760 13,596,760 6,202,761 (7,393,999) 6,534,487 Depreciation and amortization - - 551,705 551,705 512,104 Total operating expenses 13,596,760 13,596,760 6,754,466 (6,842,294) 7,046,591 OPERATING INCOME (LOSS)(3,030,035) (3,030,035) 3,131,883 6,161,918 2,994,217 NON-OPERATING REVENUES (EXPENSES) Investment income 130,000 130,000 116,306 (13,694) 196,566 Gain (loss) on disposal of capital assets - - (89,998) (89,998) (3,950) Total non-operating revenues (expenses)130,000 130,000 26,308 (103,692) 192,616 INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (2,900,035) (2,900,035) 3,158,191 6,058,226 3,186,833 TRANSFERS Transfers in - - - - 221,085 Total transfers - - - - 221,085 CHANGE IN NET POSITION (2,900,035)$ (2,900,035)$ 3,158,191 6,058,226$ 3,407,918 NET POSITION, JANUARY 1 27,834,315 24,426,397 NET POSITION, DECEMBER 31 30,992,506$ 27,834,315$ (With Comparative Actual) 2020 VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL For the Year Ended December 31, 2020 WATERWORKS SYSTEM FUND (See independent auditor's report.) - 95 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING EXPENSES Operation of facilities Public works - water operations Personnel 868,705$ 882,695$ 729,424$ (153,271)$ 796,540$ Materials and supplies 74,260 113,630 97,683 (15,947) 175,368 Operation and contractual 5,833,755 5,780,395 4,834,989 (945,406) 5,038,960 Reimbursement to other funds 526,815 526,815 526,815 - 551,830 Total public works - water operations 7,303,535 7,303,535 6,188,911 (1,114,624) 6,562,698 Capital improvements Capital outlay 6,293,225 6,293,225 3,598,498 (2,694,727) 4,103,869 Total capital improvements 6,293,225 6,293,225 3,598,498 (2,694,727) 4,103,869 TOTAL OPERATING EXPENSES (BUDGETARY BASIS)13,596,760$ 13,596,760$ 9,787,409 (3,809,351)$ 10,666,567 ADJUSTMENTS TO GAAP BASIS Capital expenditures (3,598,498) (4,103,869) Depreciation and amortization expense 551,705 512,104 Pension expense - IMRF 41,493 (77,236) OPEB expense (27,643) 49,025 Total adjustments to GAAP basis (3,032,943) (3,619,976) TOTAL OPERATING EXPENSES (GAAP BASIS)6,754,466$ 7,046,591$ 2020 VILLAGE OF OAK BROOK, ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF DETAILED EXPENSES - BUDGET AND ACTUAL - BUDGETARY BASIS For the Year Ended December 31, 2020 (With Comparative Actual) (See independent auditor's report.) - 96 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING REVENUES Charges for services Golf club 2,021,500$ 2,021,500$ 2,242,538$ 221,038$ 1,984,023$ Swimming and tennis 310,935 310,935 8,769 (302,166) 302,137 Special events 120,000 120,000 - (120,000) 114,740 Rentals and commissions 587,000 587,000 122,942 (464,058) 593,152 Food and beverage 445,500 445,500 526,623 81,123 455,585 Total operating revenues 3,484,935 3,484,935 2,900,872 (584,063) 3,449,637 OPERATING EXPENSES Golf club 2,311,255 2,245,485 2,207,238 (38,247) 2,068,515 Swimming and tennis 1,591,655 1,591,655 205,562 (1,386,093) 553,023 Special events 175,000 166,275 33,350 (132,925) 136,900 Rentals and commissions 644,115 652,840 282,244 (370,596) 533,073 Food and beverage 392,040 457,810 475,168 17,358 403,752 Total operating expenses 5,114,065 5,114,065 3,203,562 (1,910,503) 3,695,263 OPERATING INCOME (LOSS)(1,629,130) (1,629,130) (302,690) 1,326,440 (245,626) NON-OPERATING REVENUES (EXPENSES) Investment income - - 159 159 63 Grants 139,800 139,800 18,880 (120,920) - Gain (loss) on disposal of capital assets - - 7,144 7,144 (6,410) Total non-operating revenues (expenses)139,800 139,800 26,183 (113,617) (6,347) INCOME (LOSS) BEFORE TRANSFERS AND CONTRIBUTIONS (1,489,330) (1,489,330) (276,507) 1,212,823 (251,973) TRANSFERS Transfers in 1,358,000 1,358,000 723,626 (634,374) 917,487 Total transfers 1,358,000 1,358,000 723,626 (634,374) 917,487 CHANGE IN NET POSITION (131,330)$ (131,330)$ 447,119 578,449$ 665,514 NET POSITION, JANUARY 1 12,254,144 11,588,630 NET POSITION, DECEMBER 31 12,701,263$ 12,254,144$ 2020 VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL For the Year Ended December 31, 2020 (With Comparative Actual) (See independent auditor's report.) - 97 - Variance Original Final Over Budget Budget Actual (Under)2019 CHARGES FOR SERVICE Golf club Fees 1,589,000$ 1,589,000$ 1,816,930$ 227,930$ 1,550,259$ Memberships 217,500 217,500 226,488 8,988 197,675 Merchandise sales 215,000 215,000 199,109 (15,891) 217,475 Miscellaneous - - 11 11 18,614 Total golf club 2,021,500 2,021,500 2,242,538 221,038 1,984,023 Swimming and tennis Fees 64,800 64,800 - (64,800) 65,878 Memberships 241,635 241,635 199 (241,436) 222,006 Merchandise sales 1,500 1,500 - (1,500) 2,937 Miscellaneous 3,000 3,000 8,570 5,570 11,316 Total swimming and tennis 310,935 310,935 8,769 (302,166) 302,137 Special events Miscellaneous 120,000 120,000 - (120,000) 114,740 Total special events 120,000 120,000 - (120,000) 114,740 Rentals and commissions Open field rental 212,000 212,000 27,540 (184,460) 169,708 Butler range rental 75,000 75,000 75,000 - 75,000 Clubhouse rental income 300,000 300,000 20,402 (279,598) 348,444 Total rentals and commissions 587,000 587,000 122,942 (464,058) 593,152 Food and beverage Food sales 180,500 180,500 164,494 (16,006) 183,550 Beverage sales 265,000 265,000 362,129 97,129 272,035 Total food and beverage 445,500 445,500 526,623 81,123 455,585 TOTAL OPERATING REVENUES 3,484,935$ 3,484,935$ 2,900,872$ (584,063)$ 3,449,637$ 2020 VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF DETAILED REVENUES - BUDGET AND ACTUAL For the Year Ended December 31, 2020 (With Comparative Actual) (See independent auditor's report.) - 98 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING EXPENSES Operations - golf club Golf club general operations Personnel 488,200$ 513,730$ 511,078$ (2,652)$ 487,939$ Materials and supplies 174,050 263,760 262,428 (1,332) 276,596 Operation and contractual 172,150 182,960 183,005 45 255,791 Capital 455,000 261,525 261,523 (2) 120,499 Total operations - golf club 1,289,400 1,221,975 1,218,034 (3,941) 1,140,825 Golf club range operations Personnel 63,515 77,405 79,398 1,993 59,752 Materials and supplies 17,500 17,500 12,785 (4,715) 19,688 Operation and contractual 15,000 15,000 13,321 (1,679) 13,831 Capital 37,000 - - - - Total operations - golf club range 133,015 109,905 105,504 (4,401) 93,271 Golf cart operations Personnel 48,445 46,925 46,805 (120) 56,189 Materials and supplies 1,400 1,400 1,351 (49) 1,348 Operation and contractual 54,075 55,595 55,586 (9) 53,145 Total operations - golf cart 103,920 103,920 103,742 (178) 110,682 Golf course maintenance Personnel 540,145 510,205 508,933 (1,272) 544,853 Materials and supplies 163,900 189,880 189,085 (795) 206,317 Operation and contractual 38,800 67,525 67,840 315 31,498 Capital 97,000 97,000 96,658 (342) 97,634 Total operations - golf course maintenance 839,845 864,610 862,516 (2,094) 880,302 Less Reimbursement to (from) other funds (54,925) (54,925) (4,975) 49,950 (83,150) Total operations - golf club 2,311,255 2,245,485 2,284,821 39,336 2,141,930 Operations - swimming and tennis General operations Personnel 113,985 113,985 56,460 (57,525) 89,124 Materials and supplies 8,550 8,550 1,161 (7,389) 24,896 Operation and contractual 66,460 158,725 122,549 (36,176) 93,331 Capital 300,045 207,780 - (207,780) - Subtotal general operations 489,040 489,040 180,170 (308,870) 207,351 Less Reimbursement to (from) other funds (3,775) (3,775) (3,775) - (32,000) Overhead allocation (186,470) (186,470) (168,932) 17,538 (207,204) Total general operations 298,795 298,795 7,463 (291,332) (31,853) VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF DETAILED EXPENSES - BUDGET AND ACTUAL - BUDGETARY BASIS (With Comparative Actual) For the Year Ended December 31, 2020 2020 (This schedule is continued on the following pages.) - 99 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING EXPENSES (Continued) Operations - swimming and tennis (Continued) Swimming operations Personnel 21,530$ 21,530$ -$ (21,530)$ 19,585$ Materials and supplies 20,000 20,000 11,184 (8,816) 23,730 Operation and contractual 289,300 289,300 10,022 (279,278) 287,486 Capital 790,000 790,000 383,561 (406,439) 407,599 Overhead allocation 67,135 67,135 60,815 (6,320) 74,593 Total swimming operations 1,187,965 1,187,965 465,582 (722,383) 812,993 Tennis operations - outdoor Materials and supplies 2,500 2,500 1,129 (1,371) 711 Operation and contractual 61,250 61,250 7,389 (53,861) 71,850 Capital 22,500 22,500 - (22,500) - Overhead allocation 18,645 18,645 16,893 (1,752) 20,720 Total tennis operations - outdoor 104,895 104,895 25,411 (79,484) 93,281 Total operations - swimming and tennis 1,591,655 1,591,655 498,456 (1,093,199) 874,421 Special events Operation and contractual 175,000 166,275 33,350 (132,925) 136,900 Total special events 175,000 166,275 33,350 (132,925) 136,900 Rentals and commissions Bath and tennis clubhouse Personnel 140,045 140,045 107,793 (32,252) 129,977 Materials and supplies 20,225 20,225 6,759 (13,466) 31,677 Operation and contractual 109,500 111,700 56,907 (54,793) 183,815 Capital 189,000 186,800 173,624 (13,176) 262,120 Overhead allocation 93,235 93,235 84,466 (8,769) 103,602 Total bath and tennis clubhouse 552,005 552,005 429,549 (122,456) 711,191 Open fields Personnel 10,810 10,810 - (10,810) 8,890 Materials and supplies 1,700 1,700 1,498 (202) 1,375 Operation and contractual 64,600 73,325 20,104 (53,221) 79,071 Capital 15,000 15,000 - (15,000) - Total open fields 92,110 100,835 21,602 (79,233) 89,336 Total rentals and commissions 644,115 652,840 451,151 (201,689) 800,527 2020 For the Year Ended December 31, 2020 (With Comparative Actual) VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF DETAILED EXPENSES - BUDGET AND ACTUAL - BUDGETARY BASIS (Continued) (This schedule is continued on the following page.) - 100 - Variance Original Final Over Budget Budget Actual (Under)2019 2020 For the Year Ended December 31, 2020 (With Comparative Actual) VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF DETAILED EXPENSES - BUDGET AND ACTUAL - BUDGETARY BASIS (Continued) OPERATING EXPENSES (Continued) Food and beverage Poolside grill Personnel 28,065$ 3,300$ 165$ (3,135)$ 29,990$ Materials and supplies 26,600 26,600 - (26,600) 30,848 Operation and contractual 1,260 1,260 - (1,260) 25 Overhead allocation 7,455 7,455 6,757 (698) 8,288 Total poolside grill 63,380 38,615 6,922 (31,693) 69,151 Golf clubhouse Personnel 123,360 181,490 181,589 99 126,641 Materials and supplies 181,600 217,945 216,281 (1,664) 169,233 Operation and contractual 7,700 7,700 5,878 (1,822) 9,651 Capital 16,000 12,060 12,059 (1) - Total golf clubhouse 328,660 419,195 415,807 (3,388) 305,525 Total food and beverage 392,040 457,810 422,729 (35,081) 374,676 TOTAL OPERATING EXPENSES (BUDGETARY BASIS)5,114,065$ 5,114,065$ 3,690,507 (1,423,558)$ 4,328,454 ADJUSTMENTS TO GAAP BASIS Capital expenditures (927,425) (887,852) Depreciation expense - golf 237,413 199,729 Depreciation expense - swimming and tennis 89,557 92,274 Depreciation expense - food and beverage 62,110 35,394 Pension expense - IMRF 26,154 (92,771) OPEB expense 25,246 20,035 Total adjustments to GAAP basis (486,945) (633,191) TOTAL OPERATING EXPENSES (GAAP BASIS)3,203,562$ 3,695,263$ (See independent auditor's report.) - 101 - NONMAJOR ENTERPRISE FUNDS Golf Surcharge Fund - to account for revenue collected related to the $3 surcharge on each golf round played. Funds are accumulated in this fund and used on golf course improvements. Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING REVENUES Charges for services Golf surcharge 115,000$ 115,000$ 124,145$ 9,145$ 108,760$ Other - - - - 2,322 Total operating revenues 115,000 115,000 124,145 9,145 111,082 OPERATING EXPENSES None - - - - - Total operating expenses excluding depreciation - - - - - OPERATING INCOME 115,000 115,000 124,145 9,145 111,082 NON-OPERATING REVENUES (EXPENSES) Investment income 2,500 2,500 889 (1,611) 10,842 Total non-operating revenues (expenses)2,500 2,500 889 (1,611) 10,842 INCOME BEFORE TRANSFERS AND CONTRIBUTIONS 117,500 117,500 125,034 7,534 121,924 TRANSFERS Transfers (out)(400,000) (400,000) (340,065) 59,935 (212,969) Total transfers (400,000) (400,000) (340,065) 59,935 (212,969) CHANGE IN NET POSITION (GAAP BASIS)(282,500)$ (282,500)$ (215,031) 67,469$ (91,045) NET POSITION, JANUARY 1 347,624 438,669 NET POSITION, DECEMBER 31 132,593$ 347,624$ 2020 (With Comparative Actual) For the Year Ended December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS GOLF SURCHARGE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - BUDGETARY BASIS (See independent auditor's report.) - 102 - INTERNAL SERVICE FUNDS 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, ILLINOIS COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2020 Self Capital Insurance Garage Replacement Total CURRENT ASSETS Cash and investments -$ 298,348$ 696,848$ 995,196$ Receivables Accrued interest - - 3,204 3,204 Other 307,246 1,430 - 308,676 Inventories - 54,215 - 54,215 Prepaid expenses 85,471 - 284,093 369,564 Total current assets 392,717 353,993 984,145 1,730,855 NONCURRENT ASSETS Capital assets Assets being depreciated Cost - 221,942 7,092,688 7,314,630 Accumulated depreciation - (176,500) (3,625,446) (3,801,946) Net capital assets - 45,442 3,467,242 3,512,684 Total assets 392,717 399,435 4,451,387 5,243,539 DEFERRED OUTFLOWS OF RESOURCES Pension items - IMRF - 32,183 - 32,183 Deferred outflows of resources - OPEB - 9,913 - 9,913 Total deferred outflows of resources - 42,096 - 42,096 Total assets and deferred outflows of resources 392,717 441,531 4,451,387 5,285,635 CURRENT LIABILITIES Accounts payable 1,135 4,813 1,654 7,602 Accrued payroll - 2,499 - 2,499 Unearned revenue 22,924 - - 22,924 Claims payable 133,761 - - 133,761 Due to other funds 272,398 - - 272,398 Current compensated absences payable - 8,952 - 8,952 Current other postemployment benefit liability - 1,696 - 1,696 Current capital lease obligation - - 132,248 132,248 Total current liabilities 430,218 17,960 133,902 582,080 NONCURRENT LIABILITIES Net pension liability - IMRF - 51,704 - 51,704 Compensated absences payable - 1,580 - 1,580 Other postemployment benefit liability - 54,150 - 54,150 Capital lease obligation - - 402,419 402,419 Total noncurrent liabilities - 107,434 402,419 509,853 Total liabilities 430,218 125,394 536,321 1,091,933 DEFERRED INFLOWS OF RESOURCES Pension items - IMRF - 45,124 - 45,124 Deferred inflows of resources - OPEB - 4,419 - 4,419 Total deferred inflows of resources - 49,543 - 49,543 Total liabilities and deferred inflows of resources 430,218 174,937 536,321 1,141,476 (This schedule is continued on the following page.) - 103 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF NET POSITION (Continued) INTERNAL SERVICE FUNDS December 31, 2020 Self Capital Insurance Garage Replacement Total NET POSITION Net investment in capital assets -$ 45,442$ 3,064,823$ 3,110,265$ Unrestricted (deficit)(37,501) 221,152 850,243 1,033,894 TOTAL NET POSITION (DEFICIT)(37,501)$ 266,594$ 3,915,066$ 4,144,159$ (See independent auditor's report.) - 104 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2020 Self Capital Insurance Garage Replacement Total OPERATING REVENUES Charges for services 3,526,058$ 702,340$ 318,660$ 4,547,058$ Total operating revenues 3,526,058 702,340 318,660 4,547,058 OPERATING EXPENSES Claims and insurance 3,533,867 - - 3,533,867 Garage operations - 685,084 - 685,084 Miscellaneous - - 42,202 42,202 Depreciation - 13,750 691,485 705,235 Total operating expenses 3,533,867 698,834 733,687 4,966,388 OPERATING INCOME (LOSS)(7,809) 3,506 (415,027) (419,330) NON-OPERATING REVENUES (EXPENSES) Investment income 1,535 1,843 13,447 16,825 Interest expense - - (16,520) (16,520) Gain (loss) on sale of capital assets - - (50,488) (50,488) Total non-operating revenues (expenses)1,535 1,843 (53,561) (50,183) CHANGE IN NET POSITION (6,274) 5,349 (468,588) (469,513) NET POSITION (DEFICIT), JANUARY 1 (31,227) 261,245 4,383,654 4,613,672 NET POSITION (DEFICIT), DECEMBER 31 (37,501)$ 266,594$ 3,915,066$ 4,144,159$ (See independent auditor's report.) - 105 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2020 Self Capital Insurance Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from internal services transactions 2,053,160$ 702,067$ 318,660$ 3,073,887$ Receipts from customers and users 1,184,577 - - 1,184,577 Payments to suppliers (3,820,490) (469,898) (40,548) (4,330,936) Payments to employees - (211,652) - (211,652) Net cash from operating activities (582,753) 20,517 278,112 (284,124) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Amounts received from (paid to) other funds 272,398 - - 272,398 Net cash from noncapital financing activities 272,398 - - 272,398 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds on sale of capital assets - - 5,010 5,010 Payment of deposit on capital asset - - (284,093) (284,093) Principal payments on capital lease - - (106,218) (106,218) Interest payments on capital lease - - (16,520) (16,520) Net cash from capital and related financing activities - - (401,821) (401,821) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investment securities - - (32,425) (32,425) Interest received 1,535 1,843 12,735 16,113 Net cash from investing activities 1,535 1,843 (19,690) (16,312) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (308,820) 22,360 (143,399) (429,859) CASH AND CASH EQUIVALENTS, JANUARY 1 308,820 275,988 426,434 1,011,242 CASH AND CASH EQUIVALENTS, DECEMBER 31 -$ 298,348$ 283,035$ 581,383$ CASH AND INVESTMENTS Cash and cash equivalents -$ 298,348$ 283,035$ 581,383$ Investments - - 413,813 413,813 TOTAL CASH AND INVESTMENTS -$ 298,348$ 696,848$ 995,196$ (This schedule is continued on the following page.) - 106 - VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CASH FLOWS (Continued) INTERNAL SERVICE FUNDS For the Year Ended December 31, 2020 Self Capital Insurance Garage Replacement Total RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)(7,809)$ 3,506$ (415,027)$ (419,330)$ Depreciation - 13,750 691,485 705,235 Adjustments to reconcile operating income (loss) to net cash from operating activities Changes in assets and liabilities Accounts receivable (288,321) (273) - (288,594) Prepaid items (13,180) 2,250 - (10,930) Inventories - 991 - 991 Accounts payable (273,593) (11,363) 1,654 (283,302) Accrued payroll - (5,967) - (5,967) Compensated absences - 1,246 - 1,246 Pension items - IMRF - 13,171 - 13,171 Pension items - OPEB - 3,206 - 3,206 Unearned revenue (12,327) - - (12,327) Claims payable 12,477 - - 12,477 NET CASH FROM OPERATING ACTIVITIES (582,753)$ 20,517$ 278,112$ (284,124)$ NONCASH TRANSACTIONS Capital assets financed by capital leases -$ -$ 190,014$ 190,014$ Loss on disposal of capital assets - - 55,498 55,498 TOTAL NONCASH TRANSACTIONS -$ -$ 245,512$ 245,512$ (See independent auditor's report.) - 107 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING REVENUES Charges for services 3,538,730$ 3,538,730$ 3,526,058$ (12,672)$ 3,383,304$ Total operating revenues 3,538,730 3,538,730 3,526,058 (12,672) 3,383,304 OPERATING EXPENSES Claims and insurance Insurance and administration 1,307,165 1,340,230 1,336,964 (3,266) 1,222,379 Health claims 2,214,000 4,357,425 2,196,903 (2,160,522) 2,386,434 Total operating expenses 3,521,165 5,697,655 3,533,867 (2,163,788) 3,608,813 OPERATING INCOME (LOSS)17,565 (2,158,925) (7,809) 2,151,116 (225,509) NON-OPERATING REVENUES (EXPENSES) Investment income 10,000 10,000 1,535 (8,465) 14,679 Total non-operating revenues (expenses)10,000 10,000 1,535 (8,465) 14,679 CHANGE IN NET POSITION 27,565$ (2,148,925)$ (6,274) 2,142,651$ (210,830) NET POSITION (DEFICIT), JANUARY 1 (31,227) 179,603 NET POSITION (DEFICIT), DECEMBER 31 (37,501)$ (31,227)$ (With Comparative Actual) 2020 VILLAGE OF OAK BROOK, ILLINOIS SELF INSURANCE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL For the Year Ended December 31, 2020 (See independent auditor's report.) - 108 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING REVENUES Charges for services 733,315$ 733,315$ 702,340$ (30,975)$ 606,600$ Total operating revenues 733,315 733,315 702,340 (30,975) 606,600 OPERATING EXPENSES Garage operations Personnel 248,450 227,665 206,931 (20,734) 204,987 Materials and supplies 174,875 174,875 125,553 (49,322) 169,852 Operational and contractual 301,630 322,415 293,088 (29,327) 298,157 Capital outlay 20,000 20,000 - (20,000) - Expenditure reimbursement paid to other funds 43,135 43,135 43,135 - 40,490 Total operating expenses 788,090 788,090 668,707 (119,383) 713,486 OPERATING INCOME (LOSS)(54,775) (54,775) 33,633 88,408 (106,886) NON-OPERATING REVENUES (EXPENSES) Investment income 5,000 5,000 1,843 (3,157) 7,667 Total non-operating revenues (expenses)5,000 5,000 1,843 (3,157) 7,667 INCOME (LOSS) BEFORE TRANSFERS (49,775) (49,775) 35,476 85,251 (99,219) TRANSFERS Transfers in - - - - 54,555 Total transfers - - - - 54,555 CHANGE IN NET POSITION (BUDGETARY BASIS)(49,775)$ (49,775)$ 35,476 85,251$ (44,664) ADJUSTMENTS TO GAAP BASIS Pension expense - IMRF (13,171) 16,492 OPEB expense (3,206) (1,201) Depreciation and amortization (13,750) (16,836) Total adjustments to GAAP basis (30,127) (1,545) CHANGE IN NET POSITION (GAAP BASIS)(49,775)$ (49,775)$ 5,349 (46,209) NET POSITION, JANUARY 1 261,245 307,454 NET POSITION, DECEMBER 31 266,594$ 261,245$ (With Comparative Actual) 2020 VILLAGE OF OAK BROOK, ILLINOIS GARAGE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL For the Year Ended December 31, 2020 (See independent auditor's report.) - 109 - Variance Original Final Over Budget Budget Actual (Under)2019 OPERATING REVENUES Charges for services 318,660$ 318,660$ 318,660$ -$ 216,470$ Total operating revenues 318,660 318,660 318,660 - 216,470 OPERATING EXPENSES Materials and supplies - 9,140 9,136 (4) 11,757 Operational and contractual - 18,480 18,476 (4) 13,186 Capital outlay 54,675 54,675 - (54,675) - Expenditure reimbursement paid to other funds 14,590 14,590 14,590 - 9,585 Total operating expenses 69,265 96,885 42,202 (54,683) 34,528 OPERATING INCOME 249,395 221,775 276,458 54,683 181,942 NON-OPERATING REVENUES (EXPENSES) Investment income 14,000 14,000 13,447 (553) 26,460 Principal payments (206,720) (162,575) (106,218) 56,357 - Interest expense - (16,525) (16,520) 5 (9,143) Gain (loss) on disposal of capital assets 3,000 3,000 (50,488) (53,488) 156,631 Total non-operating revenues (expenses)(189,720) (162,100) (159,779) 2,321 173,948 INCOME BEFORE TRANSFERS 59,675 59,675 116,679 57,004 355,890 TRANSFERS Transfers (out)- - - - (1,000,000) Total transfers - - - - (1,000,000) CHANGE IN NET POSITION (BUDGETARY BASIS)59,675$ 59,675$ 116,679 57,004$ (644,110) ADJUSTMENTS TO GAAP BASIS Principal capital lease payments 106,218 - Depreciation and amortization (691,485) (625,391) Total adjustments to GAAP basis (585,267) (625,391) CHANGE IN NET POSITION (GAAP BASIS)59,675$ 59,675$ (468,588) (1,269,501) NET POSITION, JANUARY 1 4,383,654 5,653,155 NET POSITION, DECEMBER 31 3,915,066$ 4,383,654$ 2020 CAPITAL REPLACEMENT FUND VILLAGE OF OAK BROOK, ILLINOIS (With Comparative Actual) For the Year Ended December 31, 2020 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - BUDGETARY BASIS (See independent auditor's report.) - 110 - FIDUCIARY FUNDS Fiduciary funds are used to account for assets defined as fiduciary activities. PENSION TRUST FUNDS Police Pension Fund This fund accounts for the accumulation of resources used to pay police pension benefits . Resources are provided by member contributions, employer contributions, and investment income. Firefighters’ Pension Fund This fund accounts for the accumulation of resources used to pay firefighters’ pension benefits. Resources are provided by member contributions, employer contributions, and investment income. Police Firefighters' Pension Pension Total ASSETS Cash and short-term investments 247,761$ 15,000$ 262,761$ Investments at fair value Certificates of deposit - 378,260 378,260 Money markets 2,611,554 775,634 3,387,188 U.S. Treasury obligations - 1,447,930 1,447,930 U.S. agency obligations 3,513,528 7,526,748 11,040,276 State and local obligations 659,254 1,517,651 2,176,905 Corporate bonds 7,063,962 1,857,370 8,921,332 Mutual funds 30,664,984 20,950,664 51,615,648 Receivables Accrued interest 96,196 67,392 163,588 Prepaid items 3,231 1,494 4,725 Total assets 44,860,470 34,538,143 79,398,613 LIABILITIES Accounts payable 23,348 18,103 41,451 Total liabilities 23,348 18,103 41,451 NET POSITION RESTRICTED FOR PENSIONS 44,837,122$ 34,520,040$ 79,357,162$ VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF NET POSITION December 31, 2020 PENSION TRUST FUNDS (See independent auditor's report.) - 111 - Police Firefighters' Pension Pension Total ADDITIONS Contributions Employer 1,803,644$ 1,834,554$ 3,638,198$ Employee 521,151 317,505 838,656 Total contributions 2,324,795 2,152,059 4,476,854 Investment income Net appreciation in fair value of investments 3,382,858 3,816,998 7,199,856 Interest 1,120,874 804,297 1,925,171 Total investment income 4,503,732 4,621,295 9,125,027 Less investment expenses (76,329) (62,098) (138,427) Net investment income 4,427,403 4,559,197 8,986,600 Total additions 6,752,198 6,711,256 13,463,454 DEDUCTIONS Benefits and refunds 3,060,323 3,043,861 6,104,184 Administrative expenses 38,098 43,590 81,688 Total deductions 3,098,421 3,087,451 6,185,872 NET INCREASE 3,653,777 3,623,805 7,277,582 NET POSITION RESTRICTED FOR PENSIONS January 1 41,183,345 30,896,235 72,079,580 December 31 44,837,122$ 34,520,040$ 79,357,162$ VILLAGE OF OAK BROOK, ILLINOIS COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION For the Year Ended December 31, 2020 PENSION TRUST FUNDS (See independent auditor's report.) - 112 - SUPPLEMENTAL DATA CSFA Program Number Name State Federal Other Total 444-26-1565 Tobacco Enforcement Program -$ 605$ -$ 605$ 494-10-0343 Sustained Traffic Enforcement Program - 4,947 - 4,947 422-11-0970 Open Space Land Acquisition & Development 18,880 - - 18,880 494-00-2356 Rebuild Illinois Local Bond Funds 173,174 - - 173,174 494-00-1488 Motor Fuel Tax Program 675,059 - - 675,059 Other Grant Programs CARES Act - 415,549 - 415,549 Other Grant Programs and Activities - 2,137 15,000 17,137 All other costs not allocated - - 36,397,934 36,397,934 TOTALS 867,113$ 423,238$ 36,412,934$ 37,703,285$ VILLAGE OF OAK BROOK, ILLINOIS ILLINOIS GRANT ACCOUNTABILITY AND TRANSPARENCY ACT CONSOLIDATED YEAR END FINANCIAL REPORT For the Year Ended December 31, 2020 (See independent auditor's report.) - 113 - 1415 West Diehl Road, Suite 400 Naperville, IL 60563 630.566.8400 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable President Members of the Board of Trustees Village of Oak Brook, Illinois We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the 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 (Village) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the Village of Oak Brook, Illinois’ basic financial statements and have issued our report thereon dated May 11, 2021. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose o f expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Village’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purp ose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. - 114 - - 2 - Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement s. However, providing an opinion on compliance with those provisions was not an objective of our au dit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Naperville, Illinois May 11, 2021 - 115 - STATISTICAL SECTION This part of the Village of Oak Brook, Illinois’ comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village’s overall financial health. Contents Page(s) 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. 116-125 Revenue Capacity These schedules contain information to help the reader assess the Village’s most significant local revenue source, the sales tax. 126-135 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. 136-138 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. 139-140 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs. 141-146 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Fiscal Year 2011 2012 2013 2014 GOVERNMENTAL ACTIVITIES Net investment in capital assets 56.2$ 57.6$ 59.3$ 60.7$ Restricted 9.4 9.4 9.8 11.5 Unrestricted (deficit)13.7 14.0 13.3 12.1 TOTAL GOVERNMENTAL ACTIVITIES 79.3$ 81.0$ 82.4$ 84.3$ BUSINESS-TYPE ACTIVITIES Net investment in capital assets 28.5$ 30.0$ 29.6$ 30.6$ Unrestricted 1.8 1.2 4.6 3.7 TOTAL BUSINESS-TYPE ACTIVITIES 30.3$ 31.2$ 34.2$ 34.3$ PRIMARY GOVERNMENT Net investment in capital assets 84.7$ 87.6$ 88.9$ 91.3$ Restricted 9.4 9.4 9.8 11.5 Unrestricted (deficit)15.5 15.2 17.9 15.8 TOTAL PRIMARY GOVERNMENT 109.6$ 112.2$ 116.6$ 118.6$ Data Source Audited Financial Statements Data in millions VILLAGE OF OAK BROOK, ILLINOIS NET POSITION BY COMPONENT Last Ten Fiscal Years - 116 - 2015 2016 2017 2018 2019 2020 60.7$ 60.5$ 61.8$ 65.4$ 67.5$ 69.2$ 11.3 12.3 14.8 15.3 15.1 12.6 (27.2) (26.1) (27.1) (32.3) (30.8) (25.6) 44.8$ 46.7$ 49.5$ 48.4$ 51.8$ 56.2$ 31.3$ 30.6$ 29.9$ 29.8$ 34.0$ 37.5$ 2.2 3.9 6.6 7.3 6.8 6.7 33.5$ 34.5$ 36.5$ 37.1$ 40.8$ 44.2$ 92.0$ 91.1$ 91.7$ 95.2$ 101.5$ 106.7$ 11.3 12.3 14.8 15.3 15.1 12.6 (25.0) (22.2) (20.5) (25.0) (24.0) (18.9) 78.3$ 81.2$ 86.0$ 85.5$ 92.6$ 100.4$ - 117 - Fiscal Year 2011 2012 2013 2014 EXPENSES Governmental Activities General government 4.2$ 3.7$ 4.3$ 4.5$ Public safety 12.3 13.4 13.7 14.7 Public works 4.9 6.1 4.8 4.9 Culture and recreation 1.7 1.8 1.8 2.0 Interest on long-term debt 0.4 0.4 0.4 0.3 Total governmental activities expenses 23.5 25.4 25.0 26.4 Business-Type Activities Water 4.9 5.6 6.3 7.0 Sports Core 3.1 3.3 3.4 3.6 Total business-type activities expenses 8.0 8.9 9.7 10.6 TOTAL PRIMARY GOVERNMENT EXPENSES 31.5$ 34.3$ 34.7$ 37.0$ PROGRAM REVENUES Governmental Activities Charges for services General government 1.1$ 1.6$ 2.1$ 1.9$ Public safety 1.5 1.1 1.1 1.2 Operating grants and contributions 0.3 0.3 0.4 0.4 Capital grants 0.7 - 0.5 0.3 Total governmental activities program revenues 3.6 3.0 4.1 3.8 Business-Type Activities Charges for services Water 5.3 6.7 6.9 7.0 Sports Core 2.9 3.2 3.2 3.1 Golf' surcharge - - - - Total business-type activities program revenues 8.2 9.9 10.1 10.1 TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 11.8$ 12.9$ 14.2$ 13.9$ NET REVENUES (EXPENSES) Governmental activities (19.9)$ (22.4)$ (20.9)$ (22.6)$ Business-type activities 0.2 1.0 0.4 (0.5) TOTAL PRIMARY GOVERNMENT NET REVENUES (EXPENSES)(19.7)$ (21.4)$ (20.5)$ (23.1)$ VILLAGE OF OAK BROOK, ILLINOIS CHANGE IN NET POSITION Last Ten Fiscal Years - 118 - 2015 2016 2017 2018 2019 2020 5.3$ 4.7$ 5.7$ 5.5$ 6.1$ 4.5$ 24.6 17.2 17.4 18.9 18.9 15.5 7.7 6.4 3.8 5.0 5.3 5.1 1.5 1.5 1.7 1.7 1.8 2.3 0.3 0.3 0.3 0.3 0.2 0.2 39.4 30.1 28.9 31.4 32.3 27.6 8.0 7.9 7.9 8.8 7.1 6.8 3.7 3.4 3.5 3.5 3.8 3.2 11.7 11.3 11.4 12.3 10.9 10.0 51.1$ 41.4$ 40.3$ 43.7$ 43.2$ 37.6$ 1.8$ 2.1$ 2.6$ 4.5$ 5.3$ 4.0$ 1.2 1.3 1.3 1.5 1.8 1.0 0.2 0.2 0.2 0.2 0.2 0.9 - - - - - - 3.2 3.6 4.1 6.2 7.3 5.9 7.7 8.8 9.9 9.8 10.0 9.9 3.2 3.4 3.4 3.2 3.4 2.9 - - 0.1 0.1 0.1 0.1 10.9 12.2 13.4 13.1 13.5 12.9 14.1$ 15.8$ 17.5$ 19.3$ 20.8$ 18.8$ (36.2)$ (26.5)$ (24.8)$ (25.2)$ (25.0)$ (21.7)$ (0.8) 0.9 2.0 0.8 2.6 2.9 (37.0)$ (25.6)$ (22.8)$ (24.4)$ (22.4)$ (18.8)$ - 119 - Fiscal Year 2011 2012 2013 2014 GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities Taxes Sales and local use taxes 16.0$ 16.7$ 17.3$ 17.7$ Utility 4.7 4.9 5.0 5.2 Other 2.2 2.5 2.4 2.5 Investment earnings - - 0.1 (0.2) Miscellaneous - - - - Transfers - - (0.2) (0.5) Total governmental activities 22.9 24.1 24.6 24.7 Business-Type Activities Investment earnings - - - - Miscellaneous - - - - Transfers - - 0.2 0.5 Total business-type activities - - 0.2 0.5 TOTAL PRIMARY GOVERNMENT 22.9$ 24.1$ 24.8$ 25.2$ CHANGE IN NET POSITION Governmental activities 3.0$ 1.7$ 3.7$ 2.1$ Business-type activities 0.2 1.0 0.6 - TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION 3.2$ 2.7$ 4.3$ 2.1$ Data Source Audited Financial Statements Data in millions Last Ten Fiscal Years VILLAGE OF OAK BROOK, ILLINOIS CHANGE IN NET POSITION (Continued) - 120 - 2015 2016 2017 2018 2019 2020 18.1$ 19.3$ 18.3$ 18.6$ 21.5$ 18.9$ 5.7 6.0 6.0 6.1 6.3 5.8 2.8 2.7 3.0 3.2 0.1 0.1 0.2 0.3 0.3 0.6 1.1 0.6 0.2 - - - 0.1 1.1 (0.5) - - - (0.7) (0.4) 26.5 28.3 27.6 28.5 28.4 26.1 - - - 0.1 0.2 0.1 - - - - 0.1 (0.1) 0.5 - - - 0.7 0.4 0.5 - - 0.1 1.0 0.4 27.0$ 28.3$ 27.6$ 28.6$ 29.4$ 26.5$ (9.7)$ 1.8$ 2.8$ 3.3$ 3.4$ 4.4$ (0.3) 0.9 2.0 0.9 3.6 3.3 (10.0)$ 2.7$ 4.8$ 4.2$ 7.0$ 7.7$ - 121 - Fiscal Year 2011 2012 2013 2014 GENERAL FUND Nonspendable 2,087,000$ 2,545,898$ 168,016$ 109,092$ Unrestricted Committed 364,483 224,878 224,878 - Assigned - - 102,525 205,050 Unassigned 13,532,992 14,772,181 15,902,982 15,799,127 TOTAL GENERAL FUND 15,984,475$ 17,542,957$ 16,398,401$ 16,113,269$ ALL OTHER GOVERNMENTAL FUNDS Restricted 9,316,423$ 9,323,127$ 9,712,479$ 11,533,335$ TOTAL ALL OTHER GOVERNMENTAL FUNDS 9,316,423$ 9,323,127$ 9,712,479$ 11,533,335$ Data Source Audited Financial Statements VILLAGE OF OAK BROOK, ILLINOIS FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years - 122 - 2015 2016 2017 2018 2019 2020 53,406$ 58,444$ 56,649$ 56,010$ 90,072$ 55,521$ - - - - - - - - - - - - 17,206,014 20,014,100 20,998,025 21,697,317 24,963,696 28,146,628 17,259,420$ 20,072,544$ 21,054,674$ 21,753,327$ 25,053,768$ 28,202,149$ 11,296,764$ 12,439,354$ 14,813,261$ 15,356,444$ 15,040,518$ 12,636,679$ 11,296,764$ 12,439,354$ 14,813,261$ 15,356,444$ 15,040,518$ 12,636,679$ - 123 - Fiscal Year 2011 2012 2013 2014 REVENUES Sales tax 11,070,404$ 11,326,929$ 11,385,834$ 12,149,324$ Non-home rules sales tax 4,833,972 5,230,137 5,171,232 5,384,857 Other intergovernmental 2,411,395 1,841,378 2,530,416 2,274,102 Utility taxes 4,657,683 4,900,869 5,047,306 5,203,835 Hotel/motel tax 853,638 940,008 964,684 1,049,631 Licenses and permits 948,872 1,201,998 1,686,269 1,448,471 Charges for services 1,089,783 970,778 1,021,858 1,044,934 Fines and permits 248,120 231,865 184,959 189,060 Investment income 31,018 47,363 86,287 (155,427) Miscellaneous 323,742 355,548 364,452 424,552 Total revenues 26,468,627 27,046,873 28,443,297 29,013,339 EXPENDITURES General government 3,319,839 3,600,061 4,289,515 5,072,205 Public safety 11,755,031 12,986,730 13,440,798 14,324,720 Public works 4,698,190 4,706,731 4,457,705 4,937,146 Culture and recreations 1,569,377 1,638,863 1,684,276 1,898,393 Capital outlay 281,457 607,097 - - Debt service - principal 1,827,087 1,842,163 1,876,754 425,000 Interest and issuance costs 386,259 375,042 362,129 346,094 Total expenditures 23,837,240 25,756,687 26,111,177 27,003,558 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 2,631,387 1,290,186 2,332,120 2,009,781 OTHER FINANCING SOURCES (USES) Transfers in - 275,000 - 156,840 Transfers (out)- - (725,324) (630,897) Proceeds from sale of capital assets 28,846 - - - Total other financing sources (uses)28,846 275,000 (725,324) (474,057) NET CHANGE IN FUND BALANCES 2,660,233$ 1,565,186$ 1,606,796$ 1,535,724$ DEBT SERVICE AS A PERCENTAGE OF NONCAPITAL EXPENDITURES 9.40%8.82%8.57%2.86% Data Source Audited Financial Statements VILLAGE OF OAK BROOK, ILLINOIS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years - 124 - 2015 2016 2017 2018 2019 2020 12,346,857$ 13,072,837$ 12,481,210$ 12,685,797$ 12,613,608$ 11,507,051$ 5,637,241 5,991,262 5,581,924 5,691,536 5,642,898 4,914,208 1,925,962 1,939,598 1,929,507 1,943,897 2,236,957 3,030,231 5,673,868 5,967,345 6,033,358 6,137,283 6,286,242 5,794,806 1,194,811 1,270,131 1,265,583 1,340,495 1,292,756 458,752 1,385,341 1,882,598 2,205,571 3,185,402 3,640,730 3,534,650 1,058,929 1,075,234 1,106,204 1,155,142 1,437,850 1,178,173 177,588 159,799 144,833 192,321 203,376 343,288 138,593 203,467 309,786 596,092 1,026,260 621,472 625,504 421,967 457,543 609,096 719,806 291,994 30,164,694 31,984,238 31,515,519 33,537,061 35,100,483 31,674,625 4,331,061 4,343,678 5,019,819 6,818,223 4,453,602 3,844,521 14,597,010 15,190,063 16,155,248 16,652,456 17,369,681 16,297,554 7,520,877 6,055,657 3,772,803 6,765,330 8,265,502 7,723,413 1,635,690 1,709,465 2,467,432 1,569,396 1,586,045 2,151,134 - - - - - - 384,913 420,000 457,000 227,000 217,000 305,000 326,465 309,761 287,180 262,820 243,980 224,900 28,796,016 28,028,624 28,159,482 32,295,225 32,135,810 30,546,522 1,368,678 3,955,614 3,356,037 1,241,836 2,964,673 1,128,103 - 516,221 548,454 7,790 724,360 971,212 (459,098) (516,221) (548,454) (7,790) (704,518) (1,354,773) - - - - - (459,098) - - - 19,842 (383,561) 909,580$ 3,955,614$ 3,356,037$ 1,241,836$ 2,984,515$ 744,542$ 2.47%2.69%2.84%1.64%1.64%2.01% - 125 - VILLAGE OF OAK BROOK, ILLINOIS ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Levy Years Total Estimated Estimated Total Taxable Direct Actual Actual Levy Residential Commercial Industrial Railroad Assessed Tax Taxable Taxable Year Property Property Property Property Value Rate Value Value 2010 1,088,414$ 511,191$ -$ -$ 1,599,605$ -$ 4,798,815$ 33.333% 2011 1,003,641 490,189 - - 1,493,830 - 4,481,490 33.333% 2012 910,922 448,374 - 13 1,359,309 - 4,077,927 33.333% 2013 856,140 419,122 - 13 1,275,275 - 3,825,825 33.333% 2014 849,811 414,919 - 13 1,264,743 - 3,794,229 33.333% 2015 895,787 440,733 - 13 1,336,533 - 4,009,599 33.333% 2016 967,753 461,677 - 13 1,429,443 - 4,288,329 33.333% 2017 1,025,265 486,517 - 13 1,511,795 - 4,535,385 33.333% 2018 1,053,490 508,384 - 13 1,561,887 - 4,685,661 33.333% 2019 1,062,063 538,892 - 13 1,600,968 - 4,802,904 33.333% Note: Property in the Village is reassessed each year. Property is assessed at 33% of actual value. Data Source Office of the County Clerk Cook County - 126 - Tax Levy Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Tax Rates Village of Oak Brook -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Basic Town 0.3956 0.4166 0.4567 0.4892 0.4993 0.4783 0.4490 0.4145 0.4006 0.3932 Junior College #502 0.2349 0.2495 0.2681 0.2956 0.2975 0.2786 0.2626 0.2431 0.2317 0.2112 Grade School #53 0.9164 1.0099 1.1465 1.2491 1.2932 1.2435 1.1710 1.1415 1.1447 1.1591 High School #86 1.2011 1.3362 1.4984 1.5681 1.5921 1.5592 1.4731 1.4380 1.4415 1.6110 Oak Brook Park District 0.1659 0.1904 0.2174 0.2369 0.2442 0.2349 0.2229 0.2184 0.2940 0.2923 TOTAL TAX RATES 2.9139$ 3.2026$ 3.5871$ 3.8389$ 3.9263$ 3.7945$ 3.5786$ 3.4555$ 3.5125$ 3.6668$ Note: Basic Town includes all county, forest preserve and township rates. Property tax rates are per $100 of assessed valuation. Data Source Office of the County Clerk VILLAGE OF OAK BROOK, ILLINOIS DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years - 127 - Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Ahead Inc.Apple Computer Apple Computer Inc.Costco Wholesale Carvana LLC.Lord & Taylor Costco Wholesale Macy's Louis Vuitton USA Inc.Neiman Marcus Macy's Nordstrom, Inc. Neiman Marcus Nordstrom Rack Nordstrom, Inc.Pharmerica Drug Systems Peloton Interactive Inc.Sears Roebuck & Co. Room & Board Inc.Tiffany & Co. TOP TEN TOTAL 6,327,814 $ TOP TEN TOTAL 5,563,276 $ TOTAL SALES TAX REVENUE 11,743,296 $ TOTAL SALES TAX REVENUE 11,048,561 $ TOP TEN AS A PERCENT OF TOP TEN AS A PERCENT OF SALES TAX REVENUE 53.88%SALES TAX REVENUE 50.35% 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. VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago 2020 2011 - 128 - DuPage County Regional Village Water Transportation Village Fiscal Direct State DuPage County Commission Authority Non-Home Rule Total Year Rate Rate Rate Rate Rate Rate Rate 2011 1.00%5.00%0.25%0.25%0.75%0.50%7.75% 2012 1.00%5.00%0.25%0.25%0.75%0.50%7.75% 2013 1.00%5.00%0.25%0.25%0.75%0.50%7.75% 2014 1.00%5.00%0.25%0.25%0.75%0.50%7.75% 2015 1.00%5.00%0.25%0.25%0.75%0.50%7.75% 2016 1.00%5.00%0.25%0.00%0.75%0.50%7.50% 2017 1.00%5.00%0.25%0.00%0.75%0.50%7.50% 2018 1.00%5.00%0.25%0.00%0.75%0.50%7.50% 2019 1.00%5.00%0.25%0.00%0.75%0.50%7.50% 2020 1.00%5.00%0.25%0.00%0.75%0.50%7.50% Data Sources Village Records VILLAGE OF OAK BROOK, ILLINOIS DIRECT AND OVERLAPPING SALES TAX RATES Last Ten Fiscal Years - 129 - (1) Estimated Sales 2020 Municipality Rank Sales Per Capita Population Chicago 1 23,965,021,400$ 8,845$ 2,709,534 Naperville 2 3,291,968,100 22,318 147,501 Schaumburg 3 2,819,319,700 37,999 74,194 Springfield 4 2,755,350,600 23,776 115,888 Rockford 5 2,341,024,300 15,918 147,070 Joliet 6 2,295,789,300 15,530 147,826 Mount Prospect 7 2,192,254,700 40,148 54,604 Aurora 8 2,172,295,800 10,865 199,927 Peoria 9 2,079,251,700 18,314 113,532 Orland Park 10 1,970,222,900 33,536 58,749 Glenview 11 1,820,950,900 38,404 47,416 Elgin 12 1,689,388,700 14,996 112,653 Bolingbrook 13 1,645,489,900 22,108 74,431 Champaign 14 1,617,791,800 18,460 87,636 Niles 15 1,537,451,200 52,204 29,451 Bloomington 16 1,379,836,100 17,687 78,015 Tinley Park 17 1,378,198,900 24,391 56,505 Vernon Hills 18 1,336,001,500 50,716 26,343 Elmhurst 19 1,254,710,600 27,005 46,463 Arlington Heights 20 1,214,779,100 16,094 75,482 Skokie 21 1,211,485,100 18,983 63,821 Downers Grove 22 1,208,869,800 24,436 49,470 St. Charles 23 1,204,681,600 36,856 32,686 Oak Lawn 24 1,186,342,800 21,209 55,936 Oak Brook 25 1,156,254,300 143,189 8,075 Data Source Source: U.S. Census Bureau, 2019 Population Estimates. VILLAGE OF OAK BROOK, ILLINOIS RETAIL SALES VOLUME - TOP 25 ILLINOIS COMMUNITIES State Collection Period January 1, 2020 Through December 31, 2020 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, 2020 through March 31, 2021. - 130 - % Change % Change % Change Fiscal Year Village Share/from Non-Home Rule from Total from Ended State Sales Preceding Sales Tax Preceding Sales Tax Preceding December 31,Tax Receipts Year Receipts Year Receipts Year 2011 11,048,561$ 5.70%4,939,565$ 5.00%15,988,126$ 5.50% 2012 11,147,846 0.90%5,132,229 3.90%16,280,075 1.83% 2013 11,641,063 4.42%5,171,736 0.77%16,812,799 3.27% 2014 12,004,427 3.12%5,336,836 3.19%17,341,263 3.14% 2015 12,376,637 3.10%5,667,235 6.19%18,043,872 4.05% 2016 13,021,926 5.21%5,997,652 5.83%19,019,578 5.41% 2017 12,541,909 (3.69%)5,711,846 (4.80%)18,253,755 (4.03%) 2018 12,364,673 (1.41%)5,581,941 (2.30%)17,946,614 (1.68%) 2019 12,585,990 1.79%5,682,101 1.79%18,268,091 1.79% 2020 11,743,296 (6.70%)5,097,177 (10.30%)16,840,473 (7.81%) Data Source Village Records VILLAGE OF OAK BROOK, ILLINOIS SALES TAX RECEIPTS - CASH BASIS Last Ten Fiscal Years - 131 - Month 2016 2017 2018 2019 2020 FY 2017 FY 2018 FY 2019 FY 2020 January 994,739$ 1,007,103$ 941,951$ 1,054,244 $ 1,007,062$ 1.24%(6.50%)11.92%(4.50%) February 1,045,429 1,114,054 1,041,681 1,152,709 1,147,328 6.56%(6.50%)10.66%(0.50%) March 1,658,727 1,594,758 1,639,138 1,704,528 1,753,040 (3.90%)2.78%3.99%2.85% April 847,398 856,442 837,767 723,019 909,241 1.07%(2.20%)(13.70%)25.76% May 939,441 791,176 768,902 785,897 891,829 (15.80%)(2.80%)2.21%13.48% June 1,165,340 975,861 994,866 975,961 751,814 (16.30%)1.95%(1.90%)(23.00%) July 945,183 922,697 918,572 936,555 421,088 (2.40%)(0.40%)1.96%(55.00%) August 1,041,277 1,020,651 1,066,624 1,071,211 459,383 (2.00%)4.50%0.43%(57.10%) September 1,218,034 1,083,420 1,058,046 1,054,405 890,754 (11.10%)(2.30%)(0.30%)(15.50%) October 1,045,493 1,020,709 1,020,698 1,013,832 1,001,518 (2.40%)0.00%(0.70%)(1.20%) November 1,084,781 1,118,016 1,092,064 1,109,019 1,156,812 3.06%(2.30%)1.55%4.31% December 1,036,284 1,037,022 984,364 1,004,610 1,353,427 0.07%(5.10%)2.06%34.72% TOTAL 13,022,126$ 12,541,909$ 12,364,673$ 12,585,990$ 11,743,296$ (3.70%)(1.40%)1.79%(6.70%) Data Source Village Records VILLAGE OF OAK BROOK, ILLINOIS STATE SALES TAX RECEIPTS BY MONTH - CASH BASIS Last Five Fiscal Years Fiscal Year Ended December 31, Percentage Change From Preceding Year - 132 - Month 2016 2017 2018 2019 2020 FY 2017 FY 2018 FY 2019 FY 2020 January 457,292$ 466,623$ 420,506$ 470,364 $ 455,347 $ 2.04%(9.90%)11.86%(3.20%) February 485,225 524,829 472,116 527,597 523,295 8.16%(10.00%)11.75%(0.80%) March 778,457 756,825 758,180 794,849 806,633 (2.80%)0.18%4.84%1.48% April 383,224 382,843 373,991 321,103 390,845 (0.10%)(2.30%)(14.10%)21.72% May 431,470 361,160 341,784 351,510 386,430 (16.30%)(5.40%)2.85%9.93% June 539,151 445,584 449,890 441,058 306,259 (17.40%)0.97%(2.00%)(30.60%) July 434,261 425,623 417,534 423,426 159,445 (2.00%)(1.90%)1.41%(62.30%) August 481,286 459,149 486,225 482,610 176,726 (4.60%)5.90%(0.70%)(63.40%) September 567,454 492,607 482,931 475,733 386,033 (13.20%)(2.00%)(1.50%)(18.90%) October 481,499 458,506 465,528 460,860 430,006 (4.80%)1.53%(1.00%)(6.70%) November 476,167 471,254 469,270 479,809 468,485 (1.00%)(0.40%)2.25%(2.40%) December 482,166 466,843 443,986 453,182 607,673 (3.20%)(4.90%)2.07%34.09% TOTAL 5,997,652$ 5,711,846$ 5,581,941$ 5,682,101$ 5,097,177$ (4.80%)(2.30%)1.79%(10.30%) Note: The Village's non-home rule sales tax was effective July 1, 2004 with collections beginning in October 2004. Data Source Village Records Percentage Change From Preceding Year VILLAGE OF OAK BROOK, ILLINOIS NON-HOME RULE SALES TAX RECEIPTS BY MONTH - CASH BASIS Last Five Fiscal Years Fiscal Year Ended December 31, - 133 - Fiscal Years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General merchandise 2,025,257$ 2,087,873$ 1,859,342$ 1,611,302$ 1,408,191$ 1,305,272$ 1,180,117$ 1,142,607$ 1,056,602$ $598,450 Food 45,910 49,616 52,331 57,974 170,497 167,143 191,370 212,053 194,717 104,847 Drinking and eating places 1,428,598 1,506,289 1,615,029 1,717,184 1,770,370 1,844,551 1,866,420 1,931,879 1,909,022 1,087,384 Apparel 3,034,654 3,110,107 3,065,618 3,141,898 3,078,876 2,989,258 2,931,827 2,947,860 2,840,152 1,574,681 Furniture, H.H., and radio 975,472 1,090,244 1,251,860 1,421,458 1,606,454 1,613,318 1,472,053 1,601,424 1,485,474 1,163,192 Lumber, building, and hardware 12,853 24,600 10,653 8,686 6,623 4,642 6,603 1,478 56,539 793,096 Automotive and filling stations 1,509,528 1,619,343 1,674,689 1,682,593 1,698,040 1,683,947 1,884,059 1,921,190 2,003,910 2,339,720 Drugs and other retail 1,472,117 1,124,986 1,250,569 1,530,596 1,817,539 1,857,751 1,842,238 1,761,720 1,784,167 1,637,361 Agriculture and all others 422,368 418,871 421,724 486,652 506,631 1,368,475 805,122 633,820 594,012 520,394 Manufacturers 126,281 174,572 687,312 451,814 238,943 204,789 262,420 499,353 657,270 1,743,418 TOTAL 11,053,038$ 11,206,501$ 11,889,127$ 12,110,156$ 12,302,164$ 13,039,146$ 12,442,229$ 12,653,384$ 12,581,865$ 11,562,543$ Village direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00% 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. Data Source Illinois Department of Revenue - Local Tax Allocation Division VILLAGE OF OAK BROOK, ILLINOIS SALES TAX BY CATEGORY Last Ten Fiscal Years - 134 - Fiscal Years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General merchandise 1,006,608$ 1,028,630$ 923,522$ 799,234$ 697,506$ 646,561$ 584,228$ 566,703$ 522,037$ 294,715$ Food 20,436 22,769 24,206 26,475 82,154 79,404 90,688 100,691 93,947 51,418 Drinking and eating places 710,688 749,294 804,095 854,898 880,598 916,540 927,586 945,281 952,124 537,493 Apparel 1,516,414 1,554,292 1,532,230 1,570,256 1,538,617 1,493,830 1,464,698 1,450,824 1,419,082 786,163 Furniture, H.H., and radio 486,841 544,734 624,646 707,730 801,746 806,090 737,997 788,327 742,296 579,513 Lumber, building, and hardware 6,427 12,299 5,326 4,341 3,290 2,311 3,292 721 28,266 396,548 Automotive and filling stations 413,502 444,986 462,595 461,447 454,848 443,470 505,785 523,197 538,943 504,204 Drugs and other retail 522,092 574,857 581,045 717,631 862,594 880,058 871,568 824,589 848,731 761,027 Agriculture and all others 190,247 186,919 189,403 221,375 233,499 662,998 375,069 282,685 268,657 226,688 Manufacturers 63,114 75,056 74,826 78,163 80,757 88,331 125,245 240,930 326,811 871,347 TOTAL 4,936,369$ 5,193,836$ 5,221,894$ 5,441,550$ 5,635,609$ 6,019,593$ 5,686,156$ 5,723,948$ 5,740,894$ 5,009,116$ Village non-home rule sales tax rate 0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50% 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. Data Source Illinois Department of Revenue - Local Tax Allocation Division VILLAGE OF OAK BROOK, ILLINOIS NON-HOME RULE SALES TAX BY CATEGORY Last Ten Fiscal Years - 135 - VILLAGE OF OAK BROOK, ILLINOIS RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Ratio of Total Business-Type Outstanding Total Activities Debt to Outstanding Total Installment Installment Total Equalized Debt Per Outstanding Fiscal Notes Capital Notes Primary Assessed Personal Debt Per Year Payable Leases Payable Government Valuation* Income Capita* 2011 8,736,093$ -$ 462,674$ 9,198,767$ 0.58%0.89%1,166.91$ 2012 6,984,930 - 168,837 7,153,767 0.48%0.69%907.49 2013 5,017,176 - - 5,017,176 0.37%0.48%636.46 2014 4,592,176 - - 4,592,176 0.36%0.44%582.54 2015 4,207,263 - - 4,207,263 0.33%0.41%533.71 2016 3,787,263 - - 3,787,263 0.28%0.36%480.43 2017 3,330,263 - - 3,330,263 0.23%0.31%422.46 2018 3,103,263 61,509 - 3,164,772 0.21%0.30%401.47 2019 2,886,263 450,871 - 3,337,134 0.21%0.31%423.33 2020 2,581,263 534,667 - 3,115,930 0.19%0.29%395.27 Note: Details of the Village's outstanding debt can be found in the notes to financial statements. Data Source Village records Activities Governmental *See the schedule of Demographic and Economic Information on page 138 for personal income and population - 136 - (2) *Percentage (1)of Debt (3) Gross Applicable to **Government's Debt Government Share of Debt DIRECT DEBT Village of Oak Brook 3,115,930$ 100.00%3,115,930$ OVERLAPPING DEBT DuPage County 134,305,000 3.86%5,184,173 DuPage Forest Preserve 83,399,600 3.86%3,219,225 DuPage Water Commission - 4.28%- Sanitary Districts - 17.58%- Park Districts 19,512,521 80.58%15,723,189 Elementary School Districts 101,803,038 20.53%20,900,164 High School Districts 217,132,313 10.61%23,037,738 Junior College 502 121,575,000 3.99%4,850,843 Unit District 205 138,031,248 5.20%7,177,625 Total overlapping debt 815,758,720 80,092,957 TOTAL 818,874,650$ 83,208,887$ **Amount in column (2) multiplied by amount in column (1). Note: Totals may not be exact due to rounding. Data Source Office of the County Clerk DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2020 VILLAGE OF OAK BROOK, ILLINOIS Governmental Unit *Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of subject to taxation in the Village. - 137 - Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Legal debt limit 137,966,087$ 128,842,981$ 117,890,946$ 109,992,484$ 109,084,108$ 115,276,061$ 123,289,569$ 130,392,337$ 134,790,061$ 138,083,532$ Total net debt applicable to limit 1,710,000 1,335,000 1,080,000 820,000 555,000 280,000 - - - - LEGAL DEBT MARGIN 136,256,087$ 127,507,981$ 116,810,946$ 109,172,484$ 108,529,108$ 114,996,061$ 123,289,569$ 130,392,337$ 134,790,061$ 138,083,532$ Total net debt applicable to the limit as a percentage of debt limit 1.24%1.04%2.35%0.75%0.51%0.24%0.00%0.00%0.00%0.00% Legal Debt Margin Calculation for Fiscal Year 2020 Assessed value 1,600,968,484$ Legal debt margin 8.625% Debt limit 138,083,532 Debt applicable to limit General obligation bonds - LEGAL DEBT MARGIN 138,083,532$ VILLAGE OF OAK BROOK, ILLINOIS LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years - 138 - Per Capita Fiscal Personal Personal Unemployment Year Population Income Income Rate 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% 2020 8,077 (E)131,719 1,063,894,363 6.7% (A) Actual (E) Estimate Note: Latest information available for DuPage County Data Source Village records VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC AND ECONOMIC INFORMATION Last Ten Fiscal Years - 139 - % of % of Number of Total Village Number of Total Village Employer Employees Rank Population Employees Rank Population Oakbrook Center Mall 5,800 1 73.58%3,150 1 40.00% Advocate Health Care 1,853 2 23.51%1,075 3 13.60% Ace Hardware Corporation 966 3 12.25%796 5 10.10% Hub Group 837 4 10.62% Chamberlain Group 650 5 8.25% TreeHouse Foods 455 6 5.77% Blistex 420 7 5.33%846 4 10.70% Inland Real Estate Group of Companies 370 8 4.69% Millenium Trust 349 9 4.43% Lions Clubs International 340 10 4.31%300 9 3.80% McDonald's Corporation 3,000 2 38.10% ADT Security Service, Inc.725 6 9.20% Newell Rubbermaid 323 7 4.10% Follett Higher Education 320 8 4.10% Reed Elsevier 230 10 2.90% Data Source AtoZdatabase; Selective Telephone and Email Survey 2011 VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2020 - 140 - Function/Program 2011 2012 2013 2014 GENERAL GOVERNMENT Board of trustees 0.75 0.50 0.50 0.50 Management services 1.75 1.95 1.25 1.25 Village clerk 0.25 0.35 0.25 0.25 General management 3.00 2.55 2.50 3.00 Human resources 1.50 1.75 2.00 2.00 Management 0.50 0.40 0.50 0.50 General services 1.75 1.35 - - Business licenses - - - - Communications and marketing - - - 0.50 Purchasing 0.50 0.85 1.00 1.00 Information services 2.00 2.60 2.00 2.00 Geographic information systems - - - - FINANCIAL SERVICES Financial services management 1.00 1.00 1.00 1.00 Accounting and reporting 2.75 2.75 3.00 3.00 Customer service - - 1.50 1.50 Purchasing - - - - PUBLIC WORKS Buildings and grounds 1.00 1.00 1.00 1.00 Forestry - - - - Garage operations 2.00 2.00 2.00 2.00 Water operations 6.00 6.00 7.00 7.00 Public works management 2.50 2.00 2.50 2.50 Streets - general salaries 8.00 8.00 6.50 6.50 LIBRARY Library general operations 4.50 5.25 5.50 5.50 Technical services 2.75 2.75 2.00 2.00 Reference and user services 2.25 2.50 3.00 3.00 Youth services 2.00 1.50 1.50 2.00 POLICE Police services management 2.00 2.00 3.00 3.00 Police field services 31.50 32.20 31.00 31.00 Police auxiliary - - - - Police general support 3.00 3.00 4.00 4.00 Police investigations 8.00 7.00 6.00 6.00 Village communications center 7.00 - - - Police support services 2.50 6.55 3.50 3.50 Police adjudication 0.50 - - - VILLAGE OF OAK BROOK, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES Last Ten Fiscal Years - 141 - 2015 2016 2017 2018 2019 2020 0.50 0.50 0.50 0.50 0.50 0.50 2.75 2.08 2.03 1.58 1.55 1.55 0.25 0.35 - - - - 2.00 1.72 1.60 1.60 1.50 1.50 2.00 1.10 1.28 0.95 1.25 1.25 0.50 0.20 0.20 0.20 0.20 0.20 - 1.20 1.20 1.20 1.20 1.20 - - - - - - - - - - - - 1.00 - - - - - 2.00 2.65 2.90 2.40 2.95 2.95 - 0.35 0.35 0.35 0.35 0.35 1.00 0.88 1.00 1.00 1.00 1.00 3.00 4.05 3.05 3.05 3.40 3.70 1.50 - - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 3.00 3.00 2.50 - 0.20 0.20 0.20 0.20 0.20 2.00 2.48 2.48 1.98 1.98 1.98 7.00 7.00 7.00 7.00 7.00 7.00 2.50 3.00 3.00 3.00 3.00 3.00 6.50 6.90 7.90 7.40 7.40 7.40 6.50 5.88 5.75 4.75 5.10 5.55 2.00 1.80 1.80 1.80 1.80 1.80 2.00 1.95 1.90 1.90 1.90 1.90 2.00 1.95 1.90 1.90 1.95 1.95 3.00 3.00 3.00 3.00 3.00 3.00 31.00 32.20 32.20 32.20 32.20 33.00 5.00 0.28 0.50 0.50 0.50 0.50 4.00 4.00 4.00 4.00 4.00 5.00 6.00 6.00 6.00 6.00 6.00 6.00 - - - - - - 3.50 3.25 3.25 3.25 3.25 3.25 - - - - - - - 142 - Function/Program 2011 2012 2013 2014 FIRE*** Fire and EMS - general salaries**31.00 31.00 31.00 31.00 Rescue and fire service management 1.50 1.50 1.50 2.20 Fire rescue and training - - - - Emergency medical service 6.00 6.00 6.00 6.00 Fire prevention and public safety education - - - - SPORTS CORE Sports core general operations 1.50 0.75 0.25 1.50 Swimming operations 1.40 1.40 1.40 1.40 Tennis 1.15 1.15 1.15 1.15 Sports core food and beverage operations 0.50 0.50 0.50 1.00 Poolside grill food and beverage operations 0.80 0.80 0.80 0.80 Golf club food and beverage operations 0.50 0.50 0.50 0.50 Golf club general operations 2.25 2.00 2.00 2.00 Golf learning and practice 1.50 1.50 1.50 1.50 Golf cart operations 1.10 1.10 1.10 1.10 Golf course maintenance 3.00 3.00 3.00 3.00 COMMUNITY DEVELOPMENT Engineering 3.25 3.50 3.50 3.50 Community development management 2.00 2.00 2.00 2.50 Code enforcement 3.50 4.25 4.25 5.50 TOTAL 162.20 158.75 154.45 160.15 Data Source Village Records Last Ten Fiscal Years Note: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. **Six contract firefighter/paramedics are used to supplement the full-time complement of firefighter/ paramedics. ***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. VILLAGE OF OAK BROOK, ILLINOIS FULL-TIME EQUIVALENT EMPLOYEES (Continued) - 143 - 2015 2016 2017 2018 2019 2020 31.00 31.00 31.00 31.00 31.00 30.00 2.85 2.35 2.35 2.35 2.35 2.35 - 0.20 0.20 0.20 0.20 0.20 6.00 6.40 6.40 6.60 11.60 9.50 - 3.60 3.60 3.60 3.60 3.60 0.50 1.40 1.50 1.40 1.15 1.00 1.40 1.40 1.15 1.15 0.75 0.75 1.15 1.15 0.65 0.75 0.75 0.50 1.50 1.50 1.75 1.10 1.50 1.80 0.80 0.80 0.80 - 0.80 0.80 0.50 3.80 3.80 3.80 3.80 3.80 2.00 8.00 10.15 10.15 10.15 10.00 1.50 1.50 1.50 1.50 1.50 1.50 1.10 1.10 1.10 1.10 1.10 1.10 3.00 13.50 12.50 12.50 12.00 12.00 3.50 3.40 2.36 1.88 1.88 1.88 2.50 2.60 2.60 3.08 3.08 3.08 6.00 5.91 5.23 5.23 5.23 5.23 165.80 186.58 186.13 183.10 189.62 188.32 - 144 - Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PUBLIC SAFETY Police Physical arrests 267 234 178 196 208 191 212 181 178 125 Parking violations 1,245 636 501 306 299 901 443 404 317 99 Traffic violations 3,374 3,137 2,897 2,986 2,082 1,465 1,495 1,398 1,596 1,345 Fire EMS incidents 1,091 1,113 1,191 1,321 1,329 1,432 1,380 1,408 1,468 1,162 Fire incidents 788 656 667 742 600 630 672 722 693 598 Community center Police calls dispatched 9,666 12,696 18,552 19,853 19,442 23,924 21,656 23,716 23,200 18,460 Fire/EMS calls dispatched 2,156 2,071 2,294 2,448 2,246 2,407 2,493 2,616 2,711 2,253 WATER New water meters installed 11 14 15 16 33 19 23 13 7 9 Water main breaks repaired 50 61 48 36 17 43 31 29 23 37 Water pumped (millions of gallons)1,060 1,173 1,113 1,080 1,152 1,087 995 966 889 840 LIBRARY Total circulation 84,768 91,017 93,300 90,485 91,205 112,423 105,129 114,014 140,201 78,614 Avg. daily circulation 253 269 274 265 270 318 312 337 384 248 Total holdings 124,757 128,343 131,658 131,973 102,441 97,201 94,353 91,789 88,520 88,994 COMMUNITY DEVELOPMENT Building permits issued 705 770 811 837 850 841 943 908 920 830 Inspections 2,139 2,311 2,617 2,648 2,790 2,999 2,963 2,607 2,510 2,203 Estimated construction value 58,775,804$ 76,987,646$ 131,935,998$ 110,922,495$ 174,948,935$ 99,520,330$ 176,470,285$ 135,704,908$ 167,423,370$ 179,143,947$ SPORTS CORE B&T recreation memberships 320 363 347 338 307 317 294 307 265 - Social memberships 59 67 68 82 81 77 - - - - Total events 35 56 66 72 71 75 65 74 88 8 Golf memberships 182 154 146 143 142 145 151 158 150 152 Total golf rounds 35,196 38,637 34,670 33,861 34,019 39,324 39,863 35,256 36,253 41,396 Data Source Village records VILLAGE OF OAK BROOK, ILLINOIS OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years - 145 - Function/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 PUBLIC SAFETY Police Stations 1 1 1 1 1 1 1 1 1 1 Area patrols 5 5 5 5 5 5 5 5 5 5 Patrol units 11 11 11 11 11 11 11 11 11 11 Fire Stations 2 2 2 2 2 2 2 2 2 2 Engine 1 1 1 1 1 1 2 1 1 1 Truck 1 1 1 1 1 1 1 1 1 1 Squad 1 1 1 1 1 1 2 1 1 1 Ambulances 2 2 2 2 2 2 2 2 2 3 Incident command vehicle 1 1 1 1 1 1 1 1 1 1 Reserve apparatus 4 4 4 4 4 4 4 4 4 3 Staff and support vehicles 5 5 5 4 3 3 3 3 4 3 PUBLIC WORKS Arterial streets (miles)9 9 9 9 9 9 9 9 9 9 Residential streets (miles)49 49 49 49 49 49 49 49 49 49 Streetlights 565 565 565 565 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 11 11 11 11 WATER Water mains (miles)105 105 105 105 105 105 105 105 105 105 Fire hydrants 1,500 1,500 1,500 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.8.0 mil.8.0 mil. 8.0 mil. Data Source Village records VILLAGE OF OAK BROOK, ILLINOIS CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years - 146 -