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HomeMy WebLinkAboutVillage of Oak Brook Annual Popular Financial Report 2025Table of Contents About Village of Oak Brook 1 Village of Oak Brook Leadership 2 Fund Structure, Measure Focus, and Basis of AccounƟng 3 ExplanaƟon, Analysis, and Discussion of Financial Statements 4-11 Village Sales Tax 12 Key StaƟsƟcs 13 A Message From the Village President Dear CiƟzens of Oak Brook, We are pleased to present the Popular Annual Financial Report (PAFR) for the fiscal year ended December 31, 2025. The PAFR is a high level report for ciƟzens who wish to gain a general understanding and summary of the Village’s financial acƟviƟes and posiƟon. InformaƟon 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 accounƟng 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 2025 annual audit was completed on June 04, 2026 by Sikich CPA, LLP. The ACFR is compliant with generally accepted accounƟng 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 AssociaƟon (GFOA) awards, the Triple Crown, for local government finance: · DisƟnguished Budget PresentaƟon Award (14 consecuƟve years) · CerƟficate of Achievement for Excellence in Financial ReporƟng (47 consecuƟve years) · Award for Outstanding Achievement in CiƟzen’s (Popular) Financial ReporƟng (10 consecuƟve years) Our commitment to the GFOA award programs help ensure financial informaƟon is presented in a way that is consistent with the highest standards in governmental financial reporƟng. The Village Board and I appreciate your input and conƟnued commitment in making Oak Brook a great community to live and work. If you have any quesƟons concerning this report or would like to offer any ideas or suggesƟons 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 2025 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 2025 Quick Facts PopulaƟon 8,163 (esƟmate) Retail Sales Per Capita $235,707 Land Area 7.96 sq. miles Median Income $175,870 Median Home Value $899,000 Unemployment Rate 3.7% Credit RaƟng Aa1 Total Cash and Investments $103.8 million General Fund Cash and Investments $76.7 million General Fund Reserve (cash to 2026 budgeted operaƟng expenditures) 16 months Outstanding Debt* 2025 Annual Budget $66.1 million Employees (FTEs)** 162.46 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, beauƟful homes, lush parks, and forest combine to make a dynamic and inviƟng atmosphere. Oak Brook also offers an excepƟonal variety of acƟviƟes 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 transportaƟon 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 communiƟes of Lombard, Villa Park, Elmhurst, Oakbrook Terrace, Downers Grove, Westmont, Clarendon Hills, Hinsdale, and Westchester. The Village places a great emphasis on interacƟng with local businesses, both exisƟng and potenƟal. A large porƟon of the Village’s revenue stream is derived from sales tax, which is crucial to the Village’s General Fund operaƟng 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 recreaƟon 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, aƩends meeƟngs of the Village Board, keeps its minutes, and is the official custodian of Village records. ElecƟons are held biennially, during odd- numbered years, on the first Tuesday in April. The Village Board’s primary funcƟon is policy making. The Village President, with the consent of the Board, appoints a Village Manager to administer daily administraƟve operaƟons of the Village. The Village President presides over meeƟngs of the Board, and selects and removes appointed officers of various boards, commissions and commiƩees with the consent of the Board. The mission of the Village is to provide the community with excellent local government services and the best educaƟonal opportuniƟes that meet the needs of its ciƟzens 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 OrganizaƟonal Chart Management Team Village Manager Greg Summers Police Chief Brian Strockis Public Works Director Tim O'Malley Fire Chief Kevin Fleege Finance Director Marilyn Fumero Head Librarian Jacob Post InformaƟon Technology Director Tom Gilbert Sports Core Director Art Segura Development Services Director Rebecca Von Drasek Like other local governments, the Village of Oak Brook uƟlizes fund accounƟng. Fund accounƟng segregates related accounts and acƟviƟes 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 acƟviƟes, including administraƟon, 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 commiƩed for specified purposes other than capital or debt. Capital projects funds are used to account for and report resources that are restricted, commiƩed, or assigned for capital outlay. Business-type funds are used to account for acƟviƟes similar to those found in the private sector, where the determinaƟon of net income is necessary or useful for sound financial administraƟon. Goods or services from these acƟviƟes can be provided to either outside parƟes (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 parƟes, including other governments, or on behalf of other funds within the government. Financial acƟvity of fiduciary funds are not included in governmental or business-type acƟviƟes. 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 accounƟng. The Governmental Fund Financial Statements are prepared using the current financial resources measurement focus and modified accrual basis of accounƟng. There are a few major differences between these two reporƟng basis. Fund Structure, Measure Focus, and Basis of AccounƟng 3 The Statement of Net PosiƟon (commonly known as the “balance sheet”) reports informaƟon on all of the Village’s assets, liabiliƟes, and deferred inflows and ouƞlows, with the difference reported as its “net posiƟon.” Net posiƟon measures the resources (cash, investments, receivables, capital assets, etc.) of the Village and any claims (payables, deposits, debt, etc.) against those resources. Over Ɵme, increases or decreases in net posiƟon may serve as a useful indicator of whether the financial posiƟon of the Village is improving or deterioraƟng. The table below shows that, as of December 31, 2025, the Village’s total net posiƟon was $186.0 million, which is an increase of $16.8 million from 2024. The largest porƟon of the Village’s net posiƟon, $186.0 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 addiƟonal porƟon of the net posiƟon, approximately $37.5 million, is subject to external restricƟons on how it may be used. The unrestricted porƟon of net posiƟon is $19.2 million. The balance is comprised of $27.1 million from Business-Type acƟviƟes and a Governmental AcƟviƟes deficit of $8.0 million primarily due to the unfunded pension liabiliƟes related to the IMRF (Illinois Municipal ReƟrement Fund), Police, and Fire pension plans and the OPEB obligaƟon. The total unrestricted net posiƟon increased $0.26 million in 2025. The unrestricted net posiƟon will gradually improve as the pension plans become beƩer funded in future years. ExplanaƟon, Analysis, and Discussion of Financial Statements 4 Statement of Net PosiƟon The Village has seen steady improvements in total net posiƟon over the past five years. Net posiƟon has grown from $116.5 million in 2021 to $186.0 million in 2025. The Governmental AcƟviƟes porƟon has increased from $67.9 million in 2021 to $106.1 million in 2025, a $38.2 million, or 56.2%, improvement. The Business-Type AcƟviƟes porƟon has increased from $48.6 million in 2021 to $80.0 million in 2025, a $31.4 million, or 64.6%, improvement. Although total net posiƟon has increased, the Village sƟll maintains unrestricted deficits due to unfunded pension liabiliƟes. The foundaƟon 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 operaƟng 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 operaƟng budget is funded by sales tax revenue, which is suscepƟble to economic downturns and consumer spending. This conservaƟve policy seeks to ensure the Village will have sufficient funds on hand to operate in an emergency situaƟon as well as having sufficient Ɵme to address any volaƟlity. Over the past five years, the Village has been able to significantly increase its General Fund reserve balance to $45.6 million at December 31, 2025, or 16 months of budgeted 2025 operaƟng expenditures. As of December 31, 2025, the Village had $103.8 million in cash and investments on hand, an increase of $5.9 million from December 31, 2024. The following chart demonstrates the total Fund Balance by fund: ExplanaƟon, 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 porƟon are highly liquid and have immediate access. Illinois Funds balances earned interest during 2025 at a rate that ranged from 3.86% to 4.62%. The Village’s Corporate Bonds, Municipal Bonds, CerƟficates of Deposits, and Government & Agency ObligaƟons generally ma- ture within five years. The investment porƞolio is managed to have individual securiƟes maturing nearly every month to keep the porƞolio relaƟvely liquid. The overall investment porƞolio earned interest during 2025 at an average weighted yield of 3.92% to 4.85%. Summary on Village Cash and Investments ExplanaƟon, Analysis, and Discussion of Financial Statements The Village contributes to three defined benefit pension plans, the Illinois Municipal ReƟrement Fund (IMRF), an agent mulƟple-employer public employee reƟrement 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 contribuƟons, and employer contribuƟons for all three plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. For further informaƟon on these pension plans, refer to the Village’s 2025 ACFR. Related to these pension plans, the Village reports, under long-term liabiliƟes on the Statement of Net PosiƟon, an unfunded pension liability of $51.1 million for governmental acƟviƟes and $0.6 million for business-type acƟviƟes, for a total of $51.7 million as of December 31, 2025. Actual cash contribuƟons to the pension funds for 2025 totaled $8.6 million. This consisted of: $0.5 million for the IMRF pension plan, $4.1 million for the Police pension plan, and $4.0 million for the Fire pension plan. Current State statutes require the Village’s contribuƟons 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 12/31/25 is: IMRF Police Pension Fire Pension Total Total Pension Liability $49,243,024 $83,591,283 $67,792,221 $200,626,528 Plan Fiduciary Net PosiƟon (45,926,727) (57,561,695) (45,431,275) (148,919,697) Unfunded Pension Liability $3,316,297 $26,029,588 $22,360,946 $51,706,831 Plan Funded Rate 93.27% 68.86% 67.02% 74.23% Combined annual Public Safety (Police and Fire) recommended pension contribuƟons 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 contribuƟons and unfunded liability for these years could also vary from projecƟons depending on key actuarial assumpƟons, including salary increases, mortality tables, investment returns, and Village funding levels. ProjecƟons are updated each year through an actuarial valuaƟon to determine the actual funding status of the plans. In addiƟon, current efforts to consolidate downstate pension plans could have a significant impact on these projecƟons and the health of the pension plans. The Village will conƟnue to monitor consolidaƟon and its impact on the Village’s financial future. Summary on Village Pension Plans 6 The Statement of AcƟviƟes (commonly known as the “income statement”) reports all financial acƟvity for the fiscal year ended December 31, 2025. This statement presents high-level summary informaƟon about how the Village’s net posiƟon changed during the fiscal year. Overall, the Village’s total net posiƟon has increased $16.8 million, or 9.9%, during fiscal year 2025. Governmental acƟviƟes net posiƟon increased $12.4 million, or 13.2%, from 2024 and business-type acƟviƟes net posiƟon increased $4.5 million, or 6.0%, from 2024. Total revenues increased $7.6 million, or 12.5%, compared to prior year. The increase in 2025 revenues is due to stronger retail and dining acƟvity, higher transacƟon volumes, and improved point-of-sale collecƟons for governmental acƟviƟes and targeted facility and program enhancement aƩracƟng stronger membership enrollment and greater repeat visits in business-type acƟviƟes. Total expenses increased $2.2 million, or 4.5%, compared to the prior year, which is due to capital and maintenance investments. For the year ended December 31, 2025, the Village recognized a pension expense of $8.1 million. In 2025 the Village Board approved a supplemental Police and Fire Pension contribuƟon of $4.0 million. ExplanaƟon, Analysis, and Discussion of Financial Statements 7 Statement of AcƟviƟes See page 10 of this report for further analysis and explanaƟon of major changes among revenue and expense line items. ExplanaƟon, Analysis, and Discussion of Financial Statements Revenue Overview 8 See page 10 for explanaƟons on the major changes from prior year. 2025 Actual 2024 Actual Change Sales Tax 32,363,176.00 26,232,033.00 6,131,143.00 Sales tax covers all the various taxes imposed under the Retailers OccupaƟon tax, the service OccupaƟon tax, and the Use Tax Act. The Village currently receives 1.50% of eligible sales. UƟlity/Telecom Tax 3,159,983.00 3,112,972.00 47,011.00 The Village taxes telecommunicaƟons, natural gas, and electricity. The Village re- ceives 5% tax from NICOR and a 10-Ɵered formula based on kilowaƩs used from Commonwealth Edison. Taxes are also imposed on interstate or intrastate tele- communicaƟons originaƟng or received in the Village by a person at a rate of 6% of gross charges. Hotel/Motel Tax 1,741,743.00 1,630,393.00 111,350.00 3% tax imposed upon the use and privilege of renƟng rooms in a hotel or motel within the Village. Intergovernmental 1,875,802.00 1,908,368.00 (32,566.00) Amounts received from other governments for support of parƟcular funcƟons or for general financial support. Includes State income tax and personal property replacement tax. Charges for Services 22,981,951.00 21,196,581.00 1,785,370.00 Charges imposed for providing services. Total charges for services is comprised of: Water $11,583,554, Sports Core $5,589,467, and Governmental (licenses, permits, fees) $5,808,930. Grants 1,007,554.00 1,683,391.00 (675,837.00) Funds received from federal and state agencies to assist in offseƫng expenditures related to various programs. All Other Revenue Sources 804,331.00 897,378.00 (93,047.00) Consists of property tax, other tax, gain on disposal of capital assets, investment income, and other revenue. 63,934,540.00 56,661,116.00 7,273,424.00 ExplanaƟon, 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 implementaƟon 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 2025 relates to capital and maintenance investments. For the year ended December 31, 2025, the Village recognized a pension expense of $8.1 million. In 2025 the Village Board approved a supplemental Police and Fire Pension contribuƟon of $4.0 million. Expense Overview 9 Key financial highlights of fiscal year 2025 include: · For the year ending December 31, 2025, the Village’s total (combined governmental and business-type) assets and deferred ouƞlows of resources exceeded liabiliƟes and deferred inflows of resources by $186.1 million (referred to as net posiƟon). · The Village’s total net posiƟon increased by $16.8 million, or 9.9%, compared to the prior year. · The governmental acƟviƟes reported a total net posiƟon of $106.1 million, which is an increase of $12.4 million, or 13.2%, in comparison to the prior year’s balance. The change is due to the reducƟon of Police, Fire & IMRF Pension and OPEB liabiliƟes based on actuarial esƟmates. · The business-type acƟviƟes reported a total net posiƟon of $80.0 million, which is an increase of $4.5 million, or 6.0%, in comparison to the prior year’s balance. The change is aƩributed to disciplined expenditure management and the replacement of water mains which has led to a reducƟon in water main breaks and water losses. Furthermore, the Village conƟnues to be the water supplier for Aqua’s newly acquired customer base. · The Village had a total (governmental and business-type acƟviƟes combined) unrestricted net posiƟon of $19.2 million on December 31, 2024, which is an improvement of $0.3 million from last year. · Total revenues increased by $7.6 million, or 12.5%, in comparison to the prior year. The increase is aƩributed to stronger retail and dining acƟvity, higher transacƟon volumes, and improved point-of-sale collecƟons for governmental acƟviƟes and targeted facility and program enhancement aƩracƟng stronger membership enrollment and greater repeat visits in business-type acƟviƟes. · Total expenses increased $2.2 million, or 4.5%, in comparison to the prior year. The increase is related to capital and maintenance investments in business-type acƟviƟes and the Village’s commitment to accelerate the reducƟon of the Police and Fire pension liabiliƟes with addiƟonal contribuƟons. ExplanaƟon, Analysis, and Discussion of Financial Statements Overview of Financial PosiƟon and Results of AcƟviƟes 10 ExplanaƟon, Analysis, and Discussion of Financial Statements 11 General Fund The General Fund accounts for the Village’s primary operaƟng acƟviƟes. Services funded by the General Fund include police, fire, library, public works, economic development, and general administraƟon. The General Fund accounts for all financial resources except those accounted for in another fund. General Fund balance increased $2.7 million in 2025 to a total of $45.6 million. Revenues increased $4.0 million from prior year while expenditures decreased $1.3 million over prior year. Revenues were $5.1 million over the original budget, while expenditures were $2.7 million over the original budget in 2025. The increase in expenditures is primarily aƩributed to the Village’s commitment to accelerate the reducƟon of the Police and Fire pension liabiliƟes with addiƟonal contribuƟons. 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 in 2023 and repayment 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 porƟons: 1.00% is the local porƟon that goes into the General Fund to fund general operaƟons (public safety, public works, library, development services, and administraƟon) and 0.50% is the non-home rule porƟon 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 terminaƟon of the Promenade TIF Fund. The General Fund’s porƟon of sales tax revenue in fiscal year 2025 was $22,532,150, which is an increase of $4,190,471, or 22.9%, over prior year. The Infrastructure Fund’s porƟon of non-home rule sales tax in fiscal year 2025 was $9,831,026, which is an increase of $1,940,671, or 24.6%, over prior year. Of the Village’s total sales tax revenue, nearly 50% comes from businesses located within the Oakbrook Center mall. Oakbrook Center conƟnues to be one of the areas most popular malls and offers numerous retail, dining, and entertainment opƟons. The Village’s top 10 sales tax generators in 2025 were: These taxpayers accounted for approximately 42% of the Village’s total sales tax revenue in 2025. The Village conƟnues to work on aƩracƟng new businesses to strengthen its sales tax base and conƟnue operaƟons without a real estate tax levy. The Village maintains a diverse tax base with five industries generaƟng over $2.0 million to the Village annually. · Macy’s · The Neiman Marcus Llc · Nordstrom Inc · RestoraƟon Hardware · Room & Board · Apple · Carvana Llc · CD Peacock 1837 · Costco · Louis VuiƩon Key StaƟsƟcs 13 *Individual property tax rates may vary depending on school district boundaries. 2021 2022 2023 2024 2025 General Debt per capita $343 $515 $322 $751 $719 DuPage County unemploy- ment rate 4.50% 3.70% 3.70% 3.50% 3.70% Property tax rate* 3.6608 3.6608 3.7436 3.7277 3.5772 EsƟmated retail sales $1,597,908,800 $1,767,957,100 $1,756,592,420 $1,742,102,730 $1,924,073,259 Total sales tax receipts—cash basis $20,428,732 $25,455,831 $25,223,362 $25,655,965 $30,531,060 Police Physical arrests 164 664 686 842 649 Parking violaƟons 29 160 188 198 118 Traffic violaƟons 1,212 1,056 1,135 1,479 943 Fire EMS incidents 1,493 1,707 2,017 2,031 2,034 Fire incidents 671 1181 1214 1273 1287 CommunicaƟons Center (DUCOMM) Police calls dispatched 20,561 18,173 17,492 19,585 16,815 Fire/EMS calls dispatched 2,665 2,888 3,231 3,304 3,321 Library Total circulaƟon 92,718 155,667 177,293 181,306 178,872 Total holdings 91,065 93,982 90,088 91,576 92,339 Community Development Building permits issued 865 894 924 833 909 EsƟmated construcƟon value $121,039,599 $133,244,295 $215,308,136 $158,539,190 $198,916,720 InspecƟons 2,556 2,686 3,496 3,363 3,504 Sports Core B&T recreaƟon memberships 0 382 333 370 457 Total events 45 59 25 27 33 Golf memberships 245 277 279 231 187 Total golf rounds 48,656 46,098 47,660 50,818 50,960