HomeMy WebLinkAbout2024 Citizen PAFRVillage of Oak Brook, Illinois
Popular Annual Financial Report
Table of Contents
About Village of
Oak Brook 1
Village of Oak Brook
Leadership 2
Fund Structure, Measure
Focus, and Basis of
Accountfng 3
Explanatfon, Analysis,
and Discussion of
Financial Statements 4-11
Village Sales Tax 12
Key Statfstfcs 13
A Message From the Village President
Dear Citfzens of Oak Brook,
We are pleased to present the Popular Annual Financial Report (PAFR) for the fiscal
year ended December 31, 2024. The PAFR is a high level report for citfzens who wish to
gain a general understanding and summary of the Village’s financial actfvitfes and
positfon. Informatfon contained in this report is a summarized version of the Village’s
official financial statements, the Annual Comprehensive Financial Report (ACFR). The
PAFR presents financial data on the same basis of accountfng as the ACFR, just in a
simplified manner. While the annual ACFR is over 150 pages, the PAFR is condensed
down to just over 10 pages.
The Village’s fiscal year 2024 annual audit was completed on June 02, 2025 by Sikich
CPA, LLP. The ACFR is compliant with generally accepted accountfng principles (GAAP)
and has received an unmodified (“clean”) opinion from our auditors. The full disclosure
financial statement, ACFR, can be found on the Village’s website.
The Village of Oak Brook has received all three of the Government Finance Officer’s
Associatfon (GFOA) awards, the Triple Crown, for local government finance:
• Distinguished Budget Presentation Award (13 consecutive years)
• Certificate of Achievement for Excellence in Financial Reporting (46
consecutive years)
• Award for Outstanding Achievement in Citizen’s (Popular) Financial
Reporting (9 consecutive years)
Our commitment to the GFOA award programs help ensure financial informatfon is
presented in a way that is consistent with the highest standards in governmental
financial reportfng.
The Village Board and I appreciate your input and contfnued commitment in making
Oak Brook a great community to live and work. If you have any questfons concerning
this report or would like to offer any ideas or suggestfons for improvement, please
contact Marilyn Fumero, Finance Director, at (630) 368-5070 or email at
mfumero@oak-brook.org.
Sincerely,
Laurence E. Herman
Village President
Popular Annual Financial Report
Village of Oak Brook, Illinois
Fiscal Year 2024
Important Numbers
and Addresses
Village Hall
630/368-5000
1200 Oak Brook Road
Oak Brook, IL 60523
Fire HQ
(Non-Emergency)
630/368-5200
Police HQ
(Non-Emergency)
630/368-8700
Public Works
630/368-5270
For Police or Fire
Emergencies
Dial 911
Village of Oak Brook
2024 Quick Facts
Populatfon 8,163 (estfmate)
Retail Sales Per Capita $186,834
Land Area 7.96 sq. miles
Median Income $171,123
Median Home Value $899,000
Unemployment Rate 3.7%
Credit Ratfng Aa1
Total Cash and
Investments $97.9 million
General Fund Cash
and Investments $68.2 million
General Fund
Reserve (cash to 2025
budgeted operatfng
expenditures) 17 months
Outstanding Debt*
2024 Annual Budget $61.1 million
Employees (FTE’s)** 159.46
About the Village of Oak Brook 1
The Village was incorporated February 21, 1958 by Paul Butler. Oak Brook is a community where impressive corporate
and retail centers, beautfful homes, lush parks, and forest combine to make a dynamic and invitfng atmosphere. Oak
Brook also offers an exceptfonal variety of actfvitfes that appeal to a broad range of interests, such as; an 18-hole cham-
pionship Golf Club; a Bath and Tennis Club facility that includes a swimming pool, a diving pool, and tennis courts; a
banquet facility located on the Sports Core grounds
and numerous walking trails and paths.
The Village of Oak Brook is located about 15 miles west
of the Chicago Loop, near the geographic center of the
seven-county Chicago metropolitan area. Excellent
transportatfon links are provided to all parts of the
greater metropolitan area by a network of tollways and
Federal and State highways which pass through or near
the Village. The Oak Brook area is neighbors with the
communitfes of Lombard, Villa Park, Elmhurst,
Oakbrook Terrace, Downers Grove, Westmont,
Clarendon Hills, Hinsdale, and Westchester.
The Village places a great emphasis on interactfng with
local businesses, both existfng and potentfal. A large
portfon of the Village’s revenue stream is derived from
sales tax, which is crucial to the Village’s General Fund operatfng budget. The strong business community in Oak Brook
has allowed the Village to operate without a property tax levy. The Village is able to offer a number of services, such as
public safety, public works, library, and recreatfon while maintaining a low tax community. The Village also feeds into a
number of outstanding school districts, including: Butler District 53, Downers Grove District 58, Elmhurst District 205,
Hinsdale District 181, and Salt Creek District 48.
**Based on 2,080 annual hours.
The Village of Oak Brook operates under the Village form of
government and is governed by our elected Village President and a six
member Board of Trustees—each elected at large for a four-year term
of office. The Village Clerk is elected for a four-year term, attends
meetfngs of the Village Board, keeps its minutes, and is the official
custodian of Village records. Electfons are held biennially, during odd-
numbered years, on the first Tuesday in April.
The Village Board’s primary functfon is policy making. The Village
President, with the consent of the Board, appoints a Village Manager
to administer daily administratfve operatfons of the Village. The
Village President presides over meetfngs of the Board, and selects and
removes appointed officers of various boards, commissions and
committees with the consent of the Board. The mission of the Village
is to provide the community with excellent local government services
and the best educatfonal opportunitfes that meet the needs of its
citfzens and are delivered in a professional, responsive, and fiscally
responsible manner. This mission is carried out with six specific goals.
3
Village of Oak Brook Leadership 2
Village of Oak Brook Organizational Chart
Management Team
Village Manager Assistant Village Manager
Greg Summers Joseph Mitchell
Police Chief Public Works Fire Chief Head Librarian
Brian Strockis Tim O’Malley Kevin Fleege Jacob Post
Information Technology Sports Core Development Services Finance
Tom Gilbert Art Segura Rebecca Von Drasek Marilyn Fumero
From left to right: Trustee Naveen Jain, Trustee James Nagle, Trustee A. Suresh Reddy, Village Clerk Netasha
Scarpinitf, Village Attorney, Michael Castaldo, President Laurance Herman, Village Manager Greg Summers,
Trustee Melissa Martfn, Trustee Michael Manzo, Trustee Edward Tiesenga.
Like other local governments, the Village of Oak Brook utflizes fund accountfng. Fund accountfng segregates related
accounts and actfvitfes into separate funds to ensure and demonstrate compliance with legal and regulatory
requirements. Village funds are classified into three categories: governmental funds, business-type funds, and
fiduciary funds.
Governmental funds are used to account for all or
most of the Village’s general actfvitfes, including
administratfon, public safety, highways and streets,
library, and community development.
Governmental funds are categorized as: the General
Fund, special revenue funds, and capital projects
funds. The General Fund is used to account for and
report all financial resources not accounted for and
reported in another fund. Special revenue funds are
used to account for and report specific revenue
sources that are restricted or committed for
specified purposes other than capital or debt.
Capital projects funds are used to account for and
report resources that are restricted, committed, or
assigned for capital outlay.
Business-type funds are used to account for actfvitfes similar to those found in the private sector, where the
determinatfon of net income is necessary or useful for sound financial administratfon. Goods or services from these
actfvitfes can be provided to either outside partfes (enterprise funds) or to other departments or agencies primarily
within the government (internal service funds) with costs being recovered through user-fees and charges.
Fiduciary funds are used to account for assets held on behalf of outside partfes, including other governments, or on
behalf of other funds within the government. Financial actfvity of fiduciary funds are not included in governmental or
business-type actfvitfes.
The Village presents two types of financial
statements: the Government-Wide Financial
Statements and Fund Financial Statements. In the
Government-Wide Financial Statements, the
aggregate of all Governmental and all Business-Type
funds are presented. The Government-Wide
Financial Statements and Business-Type Fund
Financial Statements are prepared using the
economic resources measurement focus and the
accrual basis of accountfng. The Governmental Fund
Financial Statements are prepared using the current
financial resources measurement focus and modified
accrual basis of accountfng. There are a few major
differences between these two reportfng basis.
Fund Structure, Measure Focus, and Basis of Accounting 3
The Statement of Net Position (commonly known as the “balance sheet”) reports informatfon on all of the Village’s
assets, liabilitfes, and deferred inflows and outilows, with the difference reported as its “net positfon.” Net positfon
measures the resources (cash, investments, receivables, capital assets, etc.) of the Village and any claims (payables,
deposits, debt, etc.) against those resources. Over tfme, increases or decreases in net positfon may serve as a useful
indicator of whether the financial positfon of the Village is improving or deterioratfng. The table below shows that, as
of December 31, 2024, the Village’s total net positfon was $169.2 million, which is an increase of $11.1 million from
2023.
The largest portfon of the Village’s net positfon, $169.2 million, reflects its investment in capital assets, less any
outstanding debt used to acquire those assets. The Village uses these capital assets to provide various services to its
residents. Consequently, these assets are not available for future spending and separated. An additfonal portfon of
the net positfon, approximately $29.3 million, is subject to external restrictfons on how it may be used.
The unrestricted portfon of net positfon is $18.9 million. The balance is comprised of $30.0 million from Business-Type
actfvitfes and a Governmental Actfvitfes deficit of $11.1 million primarily due to the unfunded pension liabilitfes related
to the IMRF (Illinois Municipal Retfrement Fund), Police, and Fire pension plans and the OPEB obligatfon. The total
unrestricted net positfon decreased $0.25 million in 2024. The unrestricted net positfon will gradually improve as the
pension plans become better funded in future years.
Explanation, Analysis, and Discussion of Financial Statements 4
Statement of Net Position
The Village has seen steady improvements in total net positfon over
the past five years. Net positfon has grown from $92.6 million in 2019
to $169.2 million in 2024. The Governmental Actfvitfes
portfon has increased from $51.8 million in 2019 to $93.7 million in
2024, a $41.9 million, or 81.0%, improvement. The Business-Type
Actfvitfes portfon has increased from $40.8 million in 2019 to $75.5
million in 2024, a $34.7 million, or 85.1%, improvement. Although
total net positfon has increased, the Village stfll maintains
unrestricted deficits due to unfunded pension liabilitfes.
The foundatfon of the Village’s financial planning is centered on the
Village’s policy of maintaining a General Fund cash and investments
reserve that meets or exceeds six months of annual operatfng
expenses. The six month policy level was established due to the
Village not having the predictability of real estate tax revenue.
Approximately 50% of the Village’s General Fund operatfng budget is
funded by sales tax revenue, which is susceptfble to economic
downturns and consumer spending. This conservatfve policy seeks to
ensure the Village will have sufficient funds on hand to operate in an
emergency situatfon as well as having sufficient tfme to address any
volatflity. Over the past five years, the Village has been able to
significantly increase its General Fund reserve balance to $43.0 million
at December 31, 2024, or 17 months of budgeted 2025 operatfng expenditures.
As of December 31, 2024, the Village had $97.9 million in cash and investments on hand, an increase of $7.5 million
from December 31, 2023. The following chart demonstrates the total Fund Balance by fund:
Explanation, Analysis, and Discussion of Financial Statements 5
The Village’s overall cash and investment balance is
made up of various sources. The checking and
Illinois Funds portfon are highly liquid and have
immediate access. Illinois Funds balances earned
interest during 2024 at a rate that ranged from 4.68
to 5.40%. The Village’s Corporate Bonds,
Municipal Bonds, Certfficates of Deposits, and
Government & Agency Obligatfons generally mature
within five year. The investment portiolio is
managed to have individual securitfes maturing
nearly every month to keep the portiolio relatfvely
liquid. The overall investment portiolio earned
interest during 2024 at an average weighted yield of
3.96% to 4.85%.
Summary on Village Cash and Investments
Fund 2024 Balance 2023 Balance Change
General $42,968,779 $42,584,194 $384,585
Hotel Tax 5,272,182 3,771,197 1,500,985
Motor Fuel Tax 2,392,217 2,022,102 370,115
Foreign Fire Insurance 202,675 177,548 25,127
Infrastructure 21,386,016 15,495,611 5,890,405
Water 57,782,380 52,970,437 4,811,943
Sports Core 17,558,472 16,363,549 1,194,923
Insurance 448,874 565,442 (116,568)
Garage 455,260 346,474 108,786
Equipment Replacement 3,464,054 3,324,883 139,171
Total $151,930,909 $137,621,437 $30,434,173
(in millions)
Explanation, Analysis, and Discussion of Financial Statements
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retfrement Fund (IMRF), an agent
multfple-employer public employee retfrement system; the Police Pension Plan, which is a single-employer pension
plan; and the Firefighter’s Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels,
employee contributfons, and employer contributfons for all three plans are governed by Illinois Compiled Statutes and
can only be amended by the Illinois General Assembly. For further informatfon on these pension plans, refer to the
Village’s 2024 ACFR.
Related to these pension plans, the Village reports, under long-term liabilitfes on the Statement of Net Positfon, an
unfunded pension liability of $59.5 million for governmental actfvitfes and $0.6 million for business-type actfvitfes, for a
total of $60.1 million as of December 31, 2024.
Actual cash contributfons to the pension funds for 2024 totaled $6.6 million. This consisted of: $0.5 million for the
IMRF pension plan, $3.0 million for the Police pension plan, and $3.1 million for the Fire pension plan. Current State
statutes require the Village’s contributfons must accumulate to the point where the past service cost for the Police and
Fire pension plans is 90% funded by the year 2040. The Village strives to have it’s pension funds 100% funded.
The Village’s total net pension liability at 12/31/24 is:
IMRF Police Pension Fire Pension Total
Total Pension Liability $48,590,743 $78,623,395 $65,063,113 $192,277,251
Plan Fiduciary Net Positfon (45,262,567) (48,474,907) (38,420,030) (132,157,504)
Unfunded Pension Liability $3,328,176 $30,148,488 $26,643,083 $60,119,747
Plan Funded Rate 93.15% 61.65% 59.05% 68.73%
Combined annual Public Safety (Police and Fire) recommended pension contributfons are expected to increase from
$4.3 million in 2021 to $5.6 million in 2040 assuming a 100% funding target. Increasing pension costs could have an
impact on future services provided by the Village. Actual contributfons and unfunded liability for these years could also
vary from projectfons depending on key actuarial assumptfons, including salary increases, mortality tables, investment
returns, and Village funding levels. Projectfons are updated each year through an actuarial valuatfon to determine the
actual funding status of the plans.
In additfon, current efforts to consolidate downstate pension plans could have a
significant impact on these projectfons and the health of the pension plans. The
Village will contfnue to monitor consolidatfon and its impact on the Village’s
financial future.
Summary on Village Pension Plans
6
The Statement of Activities (commonly known as the “income statement”) reports all financial actfvity for the fiscal
year ended December 31, 2024.
This statement presents high-level summary informatfon about how the Village’s net positfon changed during the
fiscal year. Overall, the Village’s total net positfon has increased $11.1 million, or 7.0%, during fiscal year 2024.
Governmental actfvitfes net positfon increased $5.1 million, or 5.8%, from 2023 and business-type actfvitfes net
positfon increased $6.0 million, or 8.7%, from 2023.
Total revenues decreased $0.2 million, or 0.2%, compared to prior year. The decrease in 2024 revenues is due to
lower overall utflity usage and downward trend in utflity and telecommunicatfons tax revenue in 2024.
Total expenses increased $1.7 million, or 3.6%, compared to the prior year, which is due to implementatfon of GASB
Statement Numbers 94, 96, and 101 with the largest portfon allocated to the 10-year Axon Installment Contract for
Public Safety equipment and software. For the year ended December 31, 2024, the Village recognized a pension
expense of $6.1 million. In 2024 the Village Board approved a supplemental Police and Fire Pension contributfon of
$2.0 million.
Explanation, Analysis, and Discussion of Financial Statements 7
Statement of Activities
See page 10 of this report for further analysis and explanatfon of major changes among revenue and expense line
items.
Explanation, Analysis, and Discussion of Financial Statements
2024 Actual 2023 Actual Change
Sales Tax $26,232,033 $25,127,633 $1,104,400
Sales tax covers all the various taxes imposed under the Retailers Occupatfon tax, the service
Occupatfon tax, and the Use Tax Act. The Village currently receives 1.50% of eligible sales.
Utility/Telecom Tax 3,112,972 4,286,590 (1,173,618)
The Village taxes telecommunicatfons, natural gas, and electricity. The Village receives 5% tax
from NICOR and a 10-tfered formula based on kilowatts used from Commonwealth Edison.
Taxes are also imposed on interstate or intrastate telecommunicatfons originatfng or received in
the Village by a person at a rate of 6% of gross charges.
Hotel/Motel Tax 1,630,393 1,576,776 53,617
3% tax imposed upon the use and privilege of rentfng rooms in a hotel or motel within the
Village.
Intergovernmental 1,908,368 2,173,689 (265,321)
Amounts received from other governments for support of partfcular functfons or for general
financial support. Includes State income tax and personal property replacement tax.
Charges for Services 21,196,581 21,873,293 (676,715)
Charges imposed for providing services. Total charges for services is comprised of: Water
$10,896,497, Sports Core $4,934,016, and Governmental (licenses, permits, fees) $5,366,068.
Grants 1,683,391 909,622 773,769
Funds received from federal and state agencies to assist in offsetting expenditures related to
various programs.
All Other Revenue Sources 897,378 1,385,040 (487,659)
Consists of property tax, other tax, gain on disposal of capital assets, investment income, and
other revenue.
$56,661,116 $57,332,643 ($671,527)
Revenue Overview
8
See page 10 for explanatfons on the major changes from prior year.
Explanation, Analysis, and Discussion of Financial Statements
Note - The increase in total expenses in 2015 relates to the recording of $10.4 million in pension expense related to the
implementatfon of GASB Statements No. 68 and 71. Fiscal year 2015 was the first year the expense was recorded on the Village ’s
financial statements. The increase in total expenses in 2024 relates to the implementatfon of GASB Statement Numbers 94, 96, and
101.
See page 10 for explanatfons on the major changes from the prior year.
Expense Overview
9
Key financial highlights of fiscal year 2024 include:
• For the year ending December 31, 2024, the Village’s total (combined governmental and business-type)
assets and deferred outilows of resources exceeded liabilitfes and deferred inflows of resources by
$171.5 million (referred to as net positfon).
• The Village’s total net positfon increased by $13.4 million, or 8.5%, compared to the prior year.
• The governmental actfvitfes reported a total net positfon of $95.9 million, which is an increase of $7.4
million, or 8.3%, in comparison to the prior year’s balance. The change is due to the reductfon of Police,
Fire & IMRF Pension and OPEB liabilitfes based on actuarial estfmates.
• The business-type actfvitfes reported a total net positfon of $75.5 million, which is an increase of $6.0
million, or 8.7%, in comparison to the prior year’s balance. The change is attributed to disciplined
expenditure management and the replacement of water mains which has led to a reductfon in water
main breaks and water losses. Furthermore, the Village contfnues to be the water supplier for Aqua’s
newly acquired customer base.
• The Village had a total (governmental and business-type actfvitfes combined) unrestricted net positfon of
$21.9 million on December 31, 2024, which is an improvement of $2.8 million from last year.
• Total revenues decreased slightly by $0.13 million, or 0.2%, in comparison to the prior year. The
reductfon mainly is driven by governmental actfvitfes lower utflity and telecommunicatfons tax collectfons
along with decreased permit revenue following the completfon of large constructfon projects in 2023.
These reductfons were offset by business-type actfvitfes reflectfng heightened demand for water services
and recreatfonal offerings.
• Total expenses decreased $0.5 million, or 1.1%, in comparison to the prior year. The decrease in
governmental actfvitfes expenditures is offset by an increase in business-type actfvitfes water main
infrastructure.
Explanation, Analysis, and Discussion of Financial Statements
Overview of Financial Position and Results of Activities
10
Explanation, Analysis, and Discussion of Financial Statements 11
General Fund
The General Fund accounts for the Village’s primary operatfng actfvitfes. Services funded by the General Fund include
police, fire, library, public works, economic development, and general administratfon. The General Fund accounts for
all financial resources except those accounted for in another fund.
General Fund balance increased $0.4 million in 2024 to a total of $43.0 million. Revenues decreased $2.8 million
from prior year while expenditures increased $4.3 million over prior year. Revenues were $2.2 million over the
original budget, while expenditures were $5.0 million over the original budget in 2024. The increase in expenditures
is primarily attributed to implementatfon of GASB Statement Numbers 94, 96, and 101 with the largest portfon
allocated to the 10-year Axon Installment Contract for Public Safety equipment and software.
Village Sales Tax 12
Sales Tax revenue is largest revenue source in the Village’s General Fund and Infrastructure Fund. The amount of
sales tax generated by Village businesses allows the Village to operate without a real estate tax levy. The Village no
longer receives a small amount of real estate tax revenue for the Promenade TIF district as the TIF ended and repay-
ment to TIF bondholders has been paid in full.
The sales tax rate charged within the Village is 7.50%. Of this rate, the
Village directly receives 1.50%. The 1.50% is further broken down into two
portfons: 1.00% is the local portfon that goes into the General Fund to fund
general operatfons (public safety, public works, library, development
services, and administratfon) and 0.50% is the non-home rule portfon that
goes into the Infrastructure Fund to fund roadway improvements.
Of all the sales tax and non-home rule sales tax collected from stores within
the Promenade shopping center, 20% of this amount previously was rec-
orded in the Promenade TIF Fund. The Promenade TIF Fund has been paid
in full and closed. On December 12, 2023, the Village passed Ordinance S-
1678 providing for the terminatfon of the Promenade TIF Fund.
The General Fund’s portfon of sales tax revenue in fiscal year 2024 was $17,917,392, which is an increase of $212,909,
or 1.2%, over prior year. The Infrastructure Fund’s portfon of non-home rule sales tax in fiscal year 2024 was
$7,738,573, which is an increase of $219,696, or 2.9%, over prior year.
Of the Village’s total sales tax revenue, nearly 50% comes from businesses located within the Oakbrook Center mall.
Oakbrook Center contfnues to be one of the areas most popular malls and offers numerous retail, dining, and
entertainment optfons. The Village’s top 10 sales tax generators in 2024 were:
These taxpayers accounted for approximately 44% of the
Village’s total sales tax revenue in 2024. The Village
contfnues to work on attractfng new businesses to
strengthen its sales tax base and contfnue operatfons
without a real estate tax levy. The Village maintains a
diverse tax base with four industries generatfng over $2.0
million to the Village annually.
• Macy’s
• The Neiman Marcus Llc
• Nordstrom Inc
• Restoratfon Hardware
• Room & Board
• Apple
• Carvana Llc
• CD Peacock 1837
• Costco
• Louis Vuitton
Key Statistics 13
*Individual property tax rates may vary depending on school district boundaries.
2020 2021 2022 2023 2024
General
Debt per capita $395 $343 $515 $322 $751
DuPage County unemployment rate 6.70% 4.50% 3.70% 3.70% 3.50%
Property tax rate* 3.6621 3.6608 3.6608 3.7436 3.7277
Estfmated retail sales $1,156,254,300 $1,597,908,800 $1,767,957,100 $1,756,592,420 $1,742,102,730
Total sales tax receipts—cash basis $16,840,473 $20,428,732 $25,455,831 $25,223,362 $25,655,965
Police
Physical arrests 125 164 664 686 842
Parking violatfons 99 29 160 188 198
Traffic violatfons 1,345 1,212 1,056 1,135 1,479
Fire
EMS incidents 1,162 1,493 1,707 2,017 2,031
Fire incidents 598 671 1,181 1,214 1,273
Communications Center (DUCOMM)
Police calls dispatched 18,460 20,561 18,173 17,492 19,585
Fire/EMS calls dispatched 2,253 2.665 2,888 3,231 3,304
Library
Total circulatfon 78,614 92,718 155,667 177,293 181,306
Total holdings 88,994 91,065 93,982 90,088 91,576
Community Development
Building permits issued 830 865 894 924 833
Estfmated constructfon value $179,143,947 $121,039,599 $133,244,295 $215,308,136 $158,539,190
Inspectfons 2,203 2,556 2,686 3,496 3,363
Sports Core
B&T recreatfon memberships - - 382 333 370
Total events 8 45 59 25 27
Golf memberships 152 245 277 279 231
Total golf rounds 41,396 48,656 46,098 47,660 50,818