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CAFR (Year Ended April 30, 1989) low ;..► o COUN t.� ' 6o Comprehensive Annual-Financial-Re ort p , of the Village of Oak Brook, Illinois For the Year Ended April 30, 1989 6w i { � k I I .. i r I I r.._ Ernst &Young .O VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT a Year Ended April 30, 1989 Prepared by: Finance Department VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended April 30, 1989 Page INTRODUCTORY SECTION Table of Contents 1 Organizational Chart 5 Officers and Officials 6 Letter of Transmittal 7 GFOA Certificate of Achievement 16 FINANCIAL SECTION Report of Independent Auditors . . . . . . . . . . . . . . . 17 General Purpose Financial Statements: Combined Balance Sheet--All Fund Types and Account Groups . . . . . . . . . . . . . . . . . . . . . 19 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . 21 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances (Non-GAAP Basis)--Budget and Actual General Fund, Special Revenue Fund, Debt Service Fund and Capital Projects Fund. . . . . . . . . 22 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Balances--All Proprietary Fund Types and Pension Trust Funds . . . . . . . 24 Combined Statement of Changes in Financial Position--All Proprietary Fund Types and Pension Trust Funds. . . . . . . . . . . . . . . . . . . . . . 25 Notes to Financial Statements. . . . . . . . . . . . . . . . . 26 Required Supplementary Information: Police Pension Fund Revenues by Source and Expenses by Type. . . . . . . . . . . 55 Analysis of Funding Progress . . . . . . . . . . . . . . . . 56 Firefighter's Pension Fund Revenues by Source and Expenses by Type. . . . . . . . . . . 57 Analysis of Funding Progress . . . . . . . . . . . . . . . . 58 -1- TABLE OF CONTENTS--Continued Page Combining, Individual Fund, and Account Group Financial Statements and Schedules: Governmental Funds: General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance (Non-GAAP Basis)-- Budget and Actual. . . . . . . . . . . . . . . . . . . 59 Schedule of Expenditures (Non-GAAP Basis)-- Budget and Actual. . . . . . . . . . . . . . . . . . . 60 Capital Projects Funds Combining Balance Sheet. . . . . . . . . . . . . . . . . 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances . . . . . . . . . . . . . 65 Proprietary Funds: Enterprise Funds Combining Balance Sheet. . . . . . . . . . . . . . . . . 66 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings (Deficit) . . . . . . 67 Combining Statement of Changes in Financial Position . . . . . . . . . . . . . . . . . . . . . . . 68 Waterworks System Fund: Schedule of Revenues, Expenses, and Changes in Retained Earnings (Non-GAAP Basis)-- Budget and Actual. . . . . . . . . . . . . . . . . 69 Schedule of Property, Plant and Equipment and Accumulated Depreciation . . . . . . . . . . . . 71 _ -2- -- .v. TABLE OF CONTENTS--Continued Page Combining, Individual Fund, and Account Group Financial Statements and Schedules--Continued: Proprietary Funds--Continued: Enterprise Funds--Continued: Sports Core Fund: Schedule of Revenues, Expenses, and Changes in Deficit (Non-GAAP Basis)-- Budget and Actual. . . . . . . . . . . . . . . . . . 72 Schedule of Property, Plant and Equipment and Accumulated Depreciation . . . . . . . . . . . . 76 Fiduciary Funds--Pension Trust Funds: Combining Balance Sheet. . . . . . . . . . . . . . . . . . 77 Combining Statement of Revenues, Expenses, and Changes in Fund Balances . . . . . . . . . . . . . . 78 Combining Statement of Changes in Financial Position . . . 79 Policemen's Pension Fund: Schedule of Revenues, Expenses, and Changes in Fund Balance--Budget and Actual . . . . . . . . . . 80 Firefighter's Pension Fund: Schedule of Revenues, Expenses, and Changes in Fund Balance--Budget and Actual . . . . . . . . . . 81 General Fixed Assets Account Group: Schedule of General Fixed Assets--By Source. . . . . . . . 82 Schedule of General Fixed Assets--By Function and Activity . . . . . . . . . . . . . . . . . . . . . . 83 Schedule of Changes in General Fixed Assets-- By Function and Activity . . . . . . . . . . . . . . . . 84 -3- TABLE OF CONTENTS--Continued Table Page STATISTICAL SECTION (Unaudited) _ General Governmental Expenditures by Function-- Last Ten Fiscal Years. . . . . . . . . . . . . . . . . 1 85 General Revenues by Source--Last Ten Fiscal Years. . . . 2 86 Special Assessment Collections . . . . . . . . . . . . . 3 87 Property Tax Levies and Collections--Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . 4 88 Assessed and Estimated Actual Value of Taxable Property--Last Ten Fiscal Years. . . . . . . . . . . . 5 89 Property Tax Rates--All Overlapping Governments-- _ Last Ten Fiscal Years. . . . . . . . . . . . . . . . . 6 90 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita--Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . 7 91 -' Computation of Legal Debt Margin . . . . . . . . . . . . 8 92 Computation of Direct and Overlapping Debt . . . . . . . 9 93 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures--Last Ten Fiscal Years. . . . . . . . . . 10 94 Revenue Bond Coverage--Waterworks System Bonds-- Last Ten Fiscal Years. . . . . . . . . . . . . . . . . 11 95 ` Demographic Statistics . . . . . . . . . . . . . . . . . 12 96 Property Value, Construction, and Bank Deposits-- Last Ten Calendar Years. . . . . . . . . . . . . . . . 13 97 Principal Taxpayers. . . . . . . . . . . . . . . . . . . 14 98 Insurance in Effect. . . . . . . . . . . . . . . . . . . 15 99 Miscellaneous Statistical Data . . . . . . . . . . . . . 16 100 _ -4- " I Village of Oak Brook, Illinois Organizational Chart t ELECTED OFFICIALS [f 1 -President 6-Trustees 1 1 -Clerk Treasurer Advisory Boards&Commissions Villa e M nager Plan Zoning Board Electrical Fire&Police Library Asst.to Village Legal Department L Commission of Appeals Commission Commission Commission Manager Staff Service Engineering Administrative Services Finance C Plan Review& Customer Payroll Water Accounts Design Administration Inspection Service Insurance Billing Payable Operating Departments Sports Core Public Works Fire Service ( Police Service Library Operation &Mainte- Rescue, Extinguishment, Staff/Aux.Service Investigation Patrol,Traffic, Oen Golf Club- Municipal Hance Draina e,Traffic Operation & Emergency Medical L unteer Bureau of Cortnmunication, Evidence, Open Pool Tennis p g y. Juvenile Public Fields Course house Gara a Control & Li htin and Maintenance Service Trainin Maint. rvice inspections Rec'xds,Supply& Detention g PublicLandWater System &Investigatgion p aintenance Court Liaison Information -5- VILLAGE OF OAK BROOK, ILLINOIS OFFICERS AND OFFICIALS Year Ended April 30, 1989 President Wence F. Cerne Clerk *- Marianne Lakosil Trustees Garry J. Bartecki Karen M. Bushy Walter C. Imrie Ronald P. Maher Joseph H. Rush H. Richard Winters Village Manager Stephen Berley Village Treasurer Terry Klein — -6- OF oqk 4& o a 'F 'o 2 �COUBItV, VI LLAGE OF OAK BROOK 1200 OAK BROOK ROAD *- OAK BROOK, ILLINOIS September 30, 1989 President and Board of Trustees Village of Oak Brook Oak Brook, Illinois 60521 Gentlemen: The Comprehensive Annual Financial Report of the Village of Oak Brook for the fiscal year ended April 30, 1989 is submitted herewith. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclo- sures, rests with the Village. I believe the data, as presented, is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Village as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader .: to gain the maximum understanding of the Village's financial affairs have been included. The comprehensive annual financial report is presented in three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the Village's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the auditor's report on the financial statements and sched- ules. The statistical section includes financial and demographic information, generally presented on a multiyear basis. The report includes all funds and account groups of the Village. The Village provides a full range of services. These services include public safety (police, fire, bureau of inspection, and emergency medi- cal service), street maintenance, public improvements, planning and zoning, general administration services, water, and operation of a free public library and recreation facilities at the Oak Brook Sports Core, including an 18-hole golf course. In addition to general government activities, the Village exercises oversight over the Oak Brook Public Library; therefore, this entity is included in the reporting entity. -7- However, the Intergovernmental Risk Management Agency, Intergovern- mental Personnel Benefit Cooperative and the Du Page Water Commission have not met the established criteria for inclusion in the reporting -- entity and, accordingly, are excluded from this report. ECONOMIC CONDITION AND OUTLOOK Oak Brook, about 15 miles west of the Chicago Loop, is located 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 high- ways which pass through or near the Village. The Tri-State Tollway, extending along the community's eastern boundary, provides rapid access to the northern and southern suburbs, and then into Wisconsin and Indiana. The East-West Tollway, passing through the Village's northern sector, joins the Eisenhower Expressway to the northeast, providing .r direct access to the 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 generally bounded on the north by the communities of Lombard, Villa Park, Elmhurst and Oakbrook Terrace and on the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale. Oak Brook is a community that has demonstrated an extremely high degree of economic stability. While the Illinois unemployment rate hovers around 7.4%, Du Page County has established an unemployment rate of. 4.1%, significantly lower than the norm. In Oak Brook, that rate has dropped to less than 2.5%. Based on current assessed valuations, the market value of completed homes in Du Page County ranges from $125,000 to $155,000. In 1988, the average sale price of homes in Oak Brook was $334,980, and time on the market was approximately 90 days. According to the results of a February 1988 survey of resident of the Village, over one-third of the households in Oak Brook are two-person, and over 44% of the occupants of the Village have resided in Oak Brook for over 10 years, indicating a strong level of population stability. The high level of income, along with local interviews and observed conditions, indicates that managerial and professional people represent the majority of residents. This condition will probably continue into _ the foreseeable future. MAJOR INITIATIVES Fiscal Year 1988-89 During 1988-89 the Village entered into a contract with Infrastructure Management Services to provide professional services regarding a Pavement Management System for the Village of Oak Brook. -8- �- A Pavement Management System entails inspecting every street within the Village and logging its condition. This information, along with traffic data, is then mixed with maintenance alternatives into a prioritizing report. This report is a very objective analysis of our present pavement system and a multiyear pavement maintenance projection with associated costs. The main benefit received from this is having an objective planning tool which provides a prioritizing system to deter- mine which pavements are included in the network and the best time for rehabilitation as well as the most cost-effective rehabilitation alternative. The result is an efficient and effective allocation of �,. resources to preserve and maintain the Village's investment. In the Future .� During next fiscal year the staff will prepare a Long-Range Financial Plan for fiscal years 1989-90 through 1993-94. A major source of data for this plan will come from the above mentioned Pavement Management -- System. Also of great importance in the Financial Plan is our proposed capital improvement program which is a listing of those items, projects, and possible facilities that are suggested for acquisition or construction. In providing these items it will enable the Village to develop a well- rounded program of public needs and priority listing of each project in comparison to other projects. Also, the preparation of such a program should provide greater assurance that: (1) the project/item will be undertaken in order of need; (2) that overlapping projects will be +- avoided, and; (3) that all proposed projects are coordinated with each other. FINANCIAL INFORMATION Accounting System and Budgetary Control The Village's accounting records for general governmental operations are accounted for on a modified accrual basis of accounting. Revenues are recorded when available and measurable. Expenditures are recorded when services or goods are received and liabilities are incurred. Accounting records for the Village's Enterprise Funds and Pension Trust Funds are maintained on an accrual basis. The Village places a great deal of emphasis upon internal accounting controls as they affect the overall accounting system of the Village. In developing and evaluating the Village's accounting system, consider- ation is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. -9- All internal control evaluations occur within the above framework. We believe that the Village's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording �- of financial transactions. Budgetary control is maintained through a system of monthly revenue and expenditure/expense vs. budget accounting reports which are provided to all Trustees and department heads. All disbursements receive prior approval of the Board of Trustees. Total expenditures in any fund are legally restricted to the total appropriation budget, which is not changed without supplemental ordinance approval. The budget is moni- tored at the subfunction level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Open �- encumbrances at April 30, 1989 are reported as reservations of fund balance. General Governmental Functions Operating revenues for general governmental functions as reported in the General Fund totaled $8,121,410, an increase of $422,315 (5.5%) -' over last year. The amount of revenues from all sources and the increase or decrease over last year are shown in the following tabulation: Percent Increase of (Decrease) Source Amount Total Over 1988 Intergovernmental $6,866,414 84.5% $411,732 -- Licenses and permits 261,081 3.2 (34,283) Charges for services 263,759 3.2 58,870 Fines and penalties 166,238 2.0 (23,320) Interest on investments 329,760 4.1 (38,899) Other revenues 234,158 3.0 48,215 $8.121.410 100.0% 42 ' Intergovernmental revenue is the major source of revenue for the Village, producing 84.5% of current year revenues. The increase over -, last year is due to increased sales tax revenue of $359,294 over last fiscal year. The Oakbrook Shopping Center is the major source of sales tax accounting for over 50% of total sales tax generated in the Village. ` The decrease in licenses and permits is due to decreased building activity. The increase in charges for services is due to increased calls for ambulance service and an increase in the service charge. Revenues from investment income decreased by $38,899, because of a declining fund balance and lower interest rates. -10- Other revenues were up because of a one-time grant issued to the Village by Illinois Bell Telephone in the amount of $20,000 and an Ameritech Franchise agreement of $35,000. The Village has never levied taxes for general governmental functions. However, the assessed valuation of real property of the Village was $669,030,000, an increase of $57,365,000, or 9.4% over the prior year. Expenditures for general governmental purposes as reported in the General Fund totaled $8,490,348, an increase of $381,528 (4.7%) from last year. Changes in levels of expenditures for major functions of the Village over the prior year are shown in the following tabulation: Percent Increase of (Decrease) Function Amount Total Over 1988 Legislative $ 327,739 3.9% $ 15,821 General government 1,124,734 13.3 228,970 Public safety 4,764,433 56.1 148,121 Public works 2,076,858 24.5 (12,627) Culture and recreation 196,584 2.2 1,243 8.490.348 JQ0.0% The increase in general government expenditures of $228,970 over last year is because of a new computer system, software and training totaling $79,000. Also, an increase in health insurance of 32% was a villagewide expense of $430,000, an increase of $106,000 over last year. The Village also abated $300,000 of the 1986 Sports Core tax levy as a #" result of prior years ' accumulated surpluses in the General Fund. Accumulated unpaid vacation pay is accrued when incurred in the -- propriety funds. For governmental funds, the current portion of the liability is reported in the individual fund, and the remainder is reported in the General Long-term Debt Account Group. Debt Administration The ratio of net bonded debt to assessed valuation and the amount of the debt per capita are useful indicators of the Village's debt posi- tion. This information for the Village at April 30, 1989 as compared to April 30, 1988 is as follows: April 30 April 30 1989 1988 ... Net bonded debt total $4,320,709 $5,139,611 Ratio of net bonded debt to assessed valuation .646% .840% Net bonded debt per capita $ 472 $ 642 -11- General obligation recreation bonds were issued for the purchase of the Sports Core in 1977. At that time, the Village also initiated a tax levy for purposes of retiring the principal and interest payments of the bonds. Collections in fiscal year 1988/89 totaled $576,597, or approximately 99% of the total tax levy. Because of the favorable fund balance in the General Fund, the Village abated the tax levy to be collected in fiscal 1988/89 by $300,000. As a result of the abatement the tax rate was reduced from $.1223 per $100 of assessed valuation to $.0825 per $100 of assessed valuation. The general obligation bonds are due to be retired in December 1994. In addition, the Village has outstanding revenue bonds for the Water- . _.. works System Fund. Schedules of maturities of both bond issues are located in the notes to financial statements of the report. The Village's bonds have the following ratings: —` Moody's Investors Service General Obligation Bond Aa 1973 Water Works Revenue Bonds Aa 1976 Water Works Revenue Bonds Aa Cash Management -► It is the policy of the Village of Oak Brook to invest idle cash and increase investment income by the efficient use of savings accounts, certificates of deposit, repurchase agreements, and the Illinois Public Treasurer's Investment Pool. At April 30, 1989, the Village's invest- ments for all funds exclusive of the Pension Trust Funds were distributed as follows: Treasurer's Investment Pool 2.5% Repurchase agreements 25.6 Certificates of deposit and other time deposits 71.9 For the year ended April 30, 1989, the Village received $1,812,736 in interest income. Capital Projects Funds The proceeds of the general obligation bond issue are accounted for in the Capital Project Funds until improvement projects are completed. At the end of the fiscal year, completed projects are transferred to the general account group or to the fixed assets of the Sports Core Enterprise Fund. -12- -� Motor Fuel Tax Fund The Motor Fuel Tax Fund was established to account for the revenue received from the State of Illinois for the local share of the motor fuel tax collections. The State collects the tax on each gallon of fuel sold within the State of Illinois and returns a percentage back to each municipality based on population. Motor Fuel Tax revenue from the State for the fiscal year ended April 30, 1989 was $142,506. The funds in the Motor Fuel Tax Fund have been traditionally used by the Village to finance street reconstruction and resurfacing projects, and roadway deicer salt. Pensions Employees of the Village of Oak Brook are covered by one of three pension plans. They are: (1) the Policemen's Pension Fund of the Village of Oak Brook, covering the Village's uniformed personnel in the Police Department; (2) the Firefighter's Pension Fund of the Village of Oak Brook, covering the Village's uniformed personnel in the Fire Department; and (3) the Illinois Municipal Retirement Fund, which covers all the remaining Village employees who work in excess of 1,000 hours per year on a regular basis. The employees covered by the Illinois Municipal Retirement Fund are also covered by Social Security. General Fixed Assets The general fixed assets of the Village are those fixed assets used in i-- the performance of general governmental functions and exclude the fixed assets of the Enterprise Funds. As of April 30, 1989, the general fixed assets of the Village amounted to $15,394,939. This amount represents the original cost of the assets and is considerably less than their present value. Depreciation of general fixed assets is properly not recognized in the Village's governmental fund types. Waterworks System Fund The Village's water utility continues to show increases in water sales, although also showing slight declines in net income, and debt service coverage as we continue the program of increasing rates about 5% annually. Comparative data for the past two fiscal years are presented in the following tabulation: 1989 1988 Water sales $2,204,707 $2,053,375 Water tap on charges 155,380 195,053 Total operating revenues 2,583,218 2,434,228 Total operating expenses 1,557,494 1,065,270 Amount available for debt service 1,495,509 1,933,297 Annual debt service 575,450 571,575 Coverage (amount available for debt service divided by annual debt service) 2.60 3.38 -13- During the year, $425,000 of regularly maturing revenue bonds were retired in the Waterworks System Fund. Since fiscal year 1976/77, our debt coverage as previously defined has increased from 2.07 to 3.54. Risk Management The Village of Oak Brook has in place a limited risk management program for Worker's Compensation. As part of this plan, resources are annually accumulated in the General Fund to meet potential losses. In addition, various risk control techniques, including employee safety and accident prevention training, and the formation of a Village Safety Committee consisting of employee representatives for each department of the Village, have been recently implemented to minimize accident related losses. Third-party coverage is currently maintained for Worker's ^ Compensation claims greater than $100 and all other potential losses. Sports Core Fund The 1989 financial statements reflect the eighth year of operation of the 18-hole golf course and expanded operations of the Bath and Tennis Club. Operating revenues and interest income totaled $1,890,815. Operating expenses, excluding depreciation, totaled $1,657,708. Major department activity is summarized as follows: ^ Revenues and Interest Income Percent of Description Amount Total Golf course $1,098,497 58.1% Bath and Tennis Club (including special events) 713,594 37.7 Open fields 73,316 3.9 Interest income 5,408 .3 1.890.815 lQ % Operating Expenses ^ Percent of Description Amount Total Golf course $ 732,417 44.2% Bath and Tennis Club 701,107 42.3 Open fields 21,302 1.3 _ Administration 202,882 12.2 $1.657.708 100.0% -14- �-- OTHER INFORMATION Independent Audit Statutes require an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the Village by independent certified public accountants selected by the Board of Trustees. This requirement has been complied with and the auditor's opinion has been included in this report. Certificate of Achievement 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 fiscal year ended April 30, 1988. 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 12 years. We believe our current report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments The preparation of this report could not be accomplished without the efficient and dedicated services of the entire staff 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. Terry C. Klein Finance Officer/Treasurer -15- 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 April 30, 1988 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) achieve the highest standards in government accounting -- and financial reporting. �►Gfl W OF TIIE � TEDST�IES a o President �. T sou. ze� .so Y�� Executive Director -16- Ernst &Young 150 South Wacker Drive Chicago, Illinois 60606 Telephone: (312)368-1800 REPORT OF INDEPENDENT AUDITORS The President, Board of Trustees, and Village Manager Village of Oak Brook Oak Brook, Illinois 60521 We have audited the accompanying general purpose financial statements and the combining and individual fund and account group financial statements and schedules of the Village of Oak Brook, Illinois as of ._ April 30, 1989 and for the year then ended, as listed in the table of contents. These financial statements are the responsibility of the Village's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Village of Oak Brook, Illinois at April 30, 1989, and the results of its operations and changes in financial position of its proprietary and similar trust fund types for the year then ended in conformity with generally accepted accounting principles. Also, in our opinion, the combining, individual fund, and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of the Village of Oak Brook, Illinois at April 30, 1989, and the results of operations of such funds and changes in financial position of individual proprietary and similar trust fund types for the year then ended, in conformity with generally accepted accounting principles. -17- Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining and individual fund and account group financial statements. The accompany- ing financial information listed as required supplementary information in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements, and we did not audit or apply limited procedures to such information and do not express any assurances on such information. The accompanying statistical information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the Village of Oak Brook, Illinois. Such information has not been subjected to the auditing procedures applied in our audit of the general purpose, combining, individual fund and individual account group financial statements and, accordingly, we express no opinion on it. Chicago, Illinois July 14, 1989 -18- VILLAGE OF OAK BROOK, ILLINOIS COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS April 30, 1989 Governmental Fund Types -' Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS -• Cash $ 45,832 $ 47 $ 9 $ 47 Investments 4,592,882 237,764 741,132 296,913 _ Receivables (net, where applicable, of allowances for uncollectibles): Sales taxes 1,358,562 Property taxes 553,418 State income taxes 36,626 Water customers Motor fuel tax allotments 11,551 Accrued interest 232,651 Other 166,959 Due from other funds 76,361 37 1,341 Inventory of supplies 66,605 Other assets 2,218 Restricted assets--investments Investment in joint venture Fixed assets (net, where applicable, of accumulated depreciation) Amount available in Debt Service Fund _ Amount to be provided for retirement of general long-term debt TOTAL ASSETS AND OTHER DEBITS $6.578.696 $1.294.596 —' See accompanying notes to financial statements. -19- Fiduciary Proprietary Fund Type Account Groups Totals Fund Type Pension General General Long- (Memorandum Only) Enterprise Trust Fixed Assets Term Debt 1989 1988 $ 201,894 $ 38,436 $ 286,265 $ 138,729 2,589,981 14,123,513 22,582,185 21,034,834 1,358,562 1,333,258 553,418 581,375 _ 36,626 22,577 286,168 286,168 290,021 11,551 10,426 215,743 298,828 747,222 504,746 35,570 17,643 220,172 133,457 21,871 33,513 133,123 162,694 88,136 154,741 81,363 6,252 8,470 3,753 4,351,453 4,351,453 5,504,524 577,463 577,463 - 17,213,945 $15,394,939 32,608,884 30,136,579 $ 629,291 629,291 510,389 4,411,262 4,411,262 5,223,998 $25,588.476 $14.511.933 tl5,394,932 $5.040.553 $68.956.856 $65.672.723 -19- VILLAGE OF OAK BROOK, ILLINOIS COMBINED BALANCE SHEET--ALL FUND TYPES AND ACCOUNT GROUPS--Continued April 30, 1989 Governmental Fund Types Special Debt Capital General Revenue Service Projects LIABILITIES AND FUND EQUITY Liabilities: Accounts payable $ X42 6 Accrued payroll and vacation 488,495 Customer deposits 2,417 Due to other funds 56,762 $ 76,361 Deferred revenue: Property tax receivables $ 546,305 Other 140,283 Current interest payable 119,000 Construction performance bonds 462,828 Revenue bonds payable, net of discount of $24,758 General obligation bonds payable TOTAL LIABILITIES 1,578,948 76,361 665,305 Fund equity: Investment in general fixed assets Contributed capital Retained earnings: Reserved under revenue bond ordinance Unreserved Fund balances: Reserved for encumbrances 497,731 ' Reserved for inventory 66,605 Reserved for debt service 629,291 Reserved for employees' retirement Unreserved: Designated for subsequent _ year's expenditures $193,403 Undesignated 4,435,412 173,001 104,898 TOTAL FUND EQUITY 4,999,748 173,001 629,291 298,301 TOTAL LIABILITIES AND FUND EQUITY $6.578.696 24 1.294.596 See accompanying notes to financial statements. -20- s Fiduciary Proprietary Fund Type Account Groups Totals Fund Type Pension General General Long- (Memorandum Only) Enterprise Trust Fixed Assets Term Debt 1989 1988 $ 1,026,913 $ 21,374 $ 1,476,450 $ 837,800 50,328 $ 90,553 629,376 538,065 198,771 201,188 203,950 133,123 162,694 546,305 574,600 140,283 43,102 119,000 135,100 462,828 553,743 2,450,242 2,450,242 2,870,072 4,950,000 4,9509000 5,650,000 3,726,254 21,374 5,040,553 11,108,795 11,569,126 $15,394,939 15,394,939 13,618,161 11,025,590 11,025,590 11,025,590 3,858,779 3,858,779 3,744,082 6,977,853 6,977,853 5,856,559 497,731 343,770 66,605 42,930 629,291 510,389 14,088,866 14,088,866 12,454,600 193,403 235,566 401,693 5,115,004 6,271,950 21,862,222 14,490,559 15,394,939 57,848,061 54,103,597 125.588.476 $14.511.933 tl5,394,939 t5,040,553 t68,956.8a t65,672,Zla -20- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES--ALL GOVERNMENTAL FUND TYPES Year Ended April 30, 1989 Special — General Revenue Fund Fund Revenues: Intergovernmental $6,866,414 $142,506 Property taxes Licenses and permits 261,081 Service charges 263,759 Fines and penalties 166,238 Interest on investments 329,760 22,974 Miscellaneous 234,158 TOTAL REVENUES 8,121,410 165,480 Expenditures: _ Current: Legislative 327,739 General government 1,124,734 Public safety 4,764,433 53 Public works 2,076,858 Culture and recreation 196,584 Debt service: Principal retirement Interest and fees TOTAL EXPENDITURES 8,490,348 53 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (368,938) 165,427 Other financing sources (uses): Operating transfers in 434,330 Operating transfers out (678,954) (249,761) TOTAL OTHER FINANCING SOURCES (USES) (244,624) (249,761) _ EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (613,562) (84,334) Fund balances at May 1, 1988 5,613,310 257,335 FUND BALANCES AT APRIL 30, 1989 $4.999.748 See accompanying notes to financial statements. -21- - Debt Capital Totals Service Projects (Memorandum Only) Fund Funds 1989 1988 $142,473 $7,151,393 $6,695,200 582,861 582,861 627,708 261,081 295,364 263,759 204,889 166,238 189,558 48,540 $ 17,205 418,479 421,013 234,158 185,943 773,874 17,205 9,077,969 8,619,675 327,739 311,918 1,124,734 895,764 420,073 5,184,559 4,616,312 2,076,858 2,089,485 196,584 195,341 700,000 700,000 700,000 254,972 254,972 287,234 954,972 420,073 9,865,446 9,096,054 (181,098) (402,868) (787,477) (476,379) 300,000 366,435 1,100,765 577,938 (928,715) (310,000) 300,000 366,435 172,050 267,938 118,902 (36,433) (615,427) (208,441) 510,389 334,734 6,715,768 6,924,209 2 2 1 2 1 6,100,3416.715.768 - -21- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (NON-GAAP BASIS)--BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND, DEBT SERVICE FUND AND CAPITAL PROJECTS FUND Year Ended April 30, 1989 General Fund ^ Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) -- Revenues: Intergovernmental $6,866,414 $ 6,793,300 $ 73,114 Property taxes - Licenses and permits 261,081 278,580 (17,499) Service charges 263,759 255,100 8,659 Fines and penalties 166,238 148,000 18,238 Interest on investments 329,760 300,000 29,760 Miscellaneous 234,158 157,500 76,658 TOTAL REVENUES 8,121,410 7,932,480 188,930 Expenditures: Current: Legislative 327,739 321,308 (6,431) _ General government 1,196,035 1,056,486 (139,549) Public safety 4,768,208 4,981,030 212,822 Public works 2,149,873 2,430,920 281,047 Culture and recreation 202,454 219,851 17,397 Debt service: Principal retirement Interest and fees TOTAL EXPENDITURES 8,644,309 9,009,595 365,286 EXCESS (DEFECIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (522,899) (1,077,115) 554,216 Other financing sources (uses): Operating transfers in 434,330 260,700 173,630 Operating transfers out (678,954) (310,000) (368,954) TOTAL OTHER FINANCING SOURCES (USES) (244,624) (49,300) (195,324) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (767,523) (1.126.415) Fund balances at May 1, 1988 5,613,310 FUND BALANCES AT APRIL 30, 1989 4,845.787 See accompanying notes to financial statements. -22- "' Special Revenue Fund Debt Service Fund Actual-- Variance Actual-- Variance Budgetary Favorable Budgetary Favorable Basis Budget (Unfavorable) Basis Budget (Unfavorable) $142,506 $145,000 $ (2,494) $142,473 $129,500 $ 12,973 582,861 540,700 42,161 22,974 5,500 17,474 48,540 10,000 38,540 165,480 150,500 14,980 773,874 680,200 93,674 53 (53) 700,000 700,000 254,972 271,200 16,228 53 (53) 954,972 971,200 16,228 165,427 150,500 14,927 (181,098) (291,000) 109,902 300,000 300,000 (249,761) (175,700) (74,061) (249,761) (175,700) (74,061) 300,000 300,000 (84,334) 2 Q) LCIS) 118,902 L_ $109,9Q2 257,335 510,389 W3,001 2 2 1 -22- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (NON-GAAP BASIS)--BUDGET AND ACTUAL GENERAL FUND, SPECIAL REVENUE FUND, DEBT SERVICE FUND AND CAPITAL PROJECTS FUND--Continued i Year Ended April 30, 1989 Capital Projects Fund Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) Revenues: Intergovernmental Property taxes ._ Licenses and permits Service charges Fines and penalties Interest on investments $ 11,475 $ 11,475 Miscellaneous TOTAL REVENUES 11,475 11,475 Expenditures: Current: Legislative General government Public safety 420,073 $ 555,000 134,927 Public works Culture and recreation Debt service: Principal retirement Interest and fees TOTAL EXPENDITURES 420,073 555,000 134,927 EXCESS (DEFECIENCY) OF REVENUES OVER _ (UNDER) EXPENDITURES (408,598) (555,000) 146,402 Other financing sources (uses): — Operating transfers in 366,435 375,935 (9,500) Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) 366,435 375,935 (9,500) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (42,163) Fund balances at May 1, 1988 235,566 FUND BALANCES AT APRIL 30, 1989 1 4 See accompanying notes to financial statements. -23- VILLAGE OF OAK BROOK, ILLINOIS COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS/FUND BALANCES--ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS Year Ended April 30, 1989 Fiduciary Proprietary Fund Type Totals Fund Type Pension (Memorandum Only) Enterprise Trust 1989 1988 Operating revenues: Charges for services $ 4,397,791 $ 4,397,791 $ 3,911,280 Interest on investments $ 966,431 966,431 927,667 Contributions: Employees 212,455 212,455 208,019 Village 413,473 413,473 385,054 Miscellaneous 70,834 152 70,986 35,112 TOTAL OPERATING REVENUES 4,468,625 1,592,511 6,061,136 5,467,132 Operating expenses: Operation of facilities 2,719,009 2,719,009 2,087,500 General and administrative 233,267 5,747 239,014 209,912 Depreciation 507,371 507,371 493,336 Benefit payments 239,642 239,642 226,044 TOTAL OPERATING EXPENSES 3,459,647 245,389 3,705,036 3,016,792 OPERATING INCOME 1,008,978 1,347,122 2,356,100 2,450,340 Nonoperating revenues (expenses): Interest on investments 548,430 548,430 341,174 Interest on bonds (150,450) (150,450) (171,575) Amortization of bond discount (5,170) (5,170) (5,170) Fiscal agents' fees (713) (713) (4,539) Construction reimbursements 4,700 Other revenue (expense) 6,966 6,966 (4,927) 399,063 399,063 159,663 _ NET INCOME BEFORE OPERATING TRANSFERS 1,408,041 1,347,122 2,755,163 2,610,003 Operating transfers in 12,950 12,950 10,000 Operating transfers out (185,000) (185,000) (183,962) NET INCOME 1,235,991 1,347,122 2,583,113 2,436,041 Retained earnings/fund balances at May 1, 1988 9,600,641 13,143,437 22,744,078 20,308,037 RETAINED EARNINGS/ FUND BALANCES AT APRIL 30, 1989 $10.836.632 $14.490.559 $25.327.191 $22,744.078 See accompanying notes to financial statements. -24- VILLAGE OF OAK BROOK, ILLINOIS _ COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION--ALL PROPRIETARY FUND TYPES AND PENSION TRUST FUNDS ... Year Ended April 30, 1989 Fiduciary Proprietary Fund Type Totals Fund Type Pension (Memorandum Only) Enterprise Trust 1989 1988 Sources of working capital: Operations: Net income $1,235,991 $1,347,122 $2,583,113 $2,436,041 Items not requiring working capital: Depreciation 507,371 507,371 493,336 Amortization of bond discount 5,170 5,170 5,170 _ TOTAL PROVIDED BY OPERATIONS 1,748,532 1,347,122 3,095,654 2,934,547 Decrease in restricted assets 1,153,071 1,153,071 TOTAL SOURCES OF WORKING CAPITAL 2,901,603 1,347,122 4,248,725 2,934,547 Uses of working capital: Acquisition of fixed assets 1,202,898 1,202,898 534,351 Reduction in bonds payable 425,000 425,000 400,000 Net increase in pension investments 1,292,109 1,292,109 1,282,542 Increase in investment in joint venture 577,463 577,463 TOTAL USES OF WORKING CAPITAL 2,205,361 1,292,109 3,497,470 2,216,893 NET INCREASE IN _ WORKING CAPITAL 696.242 $ 55.013 $ 751.255 $ 717,654 Elements of net increase (decrease) in working capital: Cash $ 175,630 $ (7,356) $ 168,274 $ (44,755) Investments 995,165 995,165 812,513 Receivables 104,407 79,624 184,031 80,819 Other assets 2,499 2,499 Inventory 49,703 49,703 17,763 Accounts payable (658,590) (3,958) (662,548) (153,565) Accrued payroll and vacation liability (19,084) (19,084) 6,324 Customer deposits 679 679 2,865 Due to other funds 45,833 (13,297) 32,536 (4,310) NET INCREASE IN WORKING CAPITAL $ 696.242 $ 55.013 1.25_ $ 717,654 ... See accompanying notes to financial statements. -25- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS Year Ended April 30, 1989 NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Oak Brook, Illinois ("Village") was incorporated on February 21, 1958. The Village operates under a Board of Trustees- Manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, recreation (golf course and Bath and Tennis Club), water, public improvements, planning and zoning, and general administrative services. The accompanying financial statements of the Village have been prepared in conformity with generally accepted accounting principles as promul- gated in pronouncements of the Governmental Accounting Standards Board ("GASB"). Reporting Entity: The financial statements of the Village, in conformance with GASB standards, include all funds and accounts groups of the Village and of agencies, boards and commissions over which the Village's Board of Trustees exercises oversight responsibility. Oversight responsibility is defined to include the following consid- erations: selection of governing authority, designation of management, ability to significantly influence operations, accountability for fiscal matters, the scope of an organization's public service, and/or special financial relationships. Based on the foregoing criteria, the financial statements of the following organization are included in the accompanying financial statements: Oak Brook Public Library--The Library provides services to Village residents and the Village provides most of the Library's operating funds. The following organizations are not part of the Village and are excluded in the accompanying financial statements: Intergovernmental Risk Management Agency ("IRMA")--IRMA is _ a voluntary cooperative agency consisting of 44 Illinois municipal governmental units. Its purpose is to manage and fund first-party property losses and third-party liability claims of its member municipalities. The Village does not exercise any significant control over the activities of IRMA. The Village accounts for this joint venture using the cost method as the joint venture is financed by the General Fund. -26- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Intergovernmental Personnel Benefit Cooperative ("IPBC")--IPBC is a voluntary cooperative agency established by 21 Illinois _ municipal governmental units to administer some or all of the personnel benefit programs offered by its members. The Village does not exercise any significant control over the activities of _ IPBC. The Village accounts for this joint venture using the cost method as the joint venture is financed by the General Fund. Du Page Water Commission ("Commission")--The Commission exists and operates under the Water Commission Act of 1985 to provide facilities for receiving, storing and transmitting Lake Michigan water to municipalities and other customers in Du Page County. _ The Village does not exercise control over the activities of the Commission. The Village accounts for this joint venture, which is financed by the Water Fund, using the equity method. Basis of Presentation--Fund Accounting: The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue and expendi- tures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six fund types and three broad fund categories as follows: Governmental Fund Types: .. Governmental Funds are those through which most governmental functions of the Village are financed. The Village's expendable _ financial resources (except those accounted for in proprietary funds) are accounted for through governmental funds using the flow of financial resources measurement focus. The following are the Village's governmental fund types: General Fund--The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. -27- r. VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Special Revenue Fund--The Special Revenue Fund is used to account for the Village's share of the state motor fuel tax allotments, which are required by state law to be used to maintain streets. Debt Service Fund--The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general obligation long-term debt principal, interest and related costs. The Village's only Debt Service Fund is for the Sports Core general obligation recreation bonds. Capital Project Funds--Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital items (other than those financed by proprietary funds). Proprietary Fund Type: Proprietary Funds are used to account for the Village's ongoing activ- ities that are similar to those often found in the private sector. The measurement focus is based on the flow of economic resources: Enterprise Funds--Enterprise Funds are used to account for .- operations (a) that are financed and operated in a manner similar to private business enterprises--where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Fiduciary Fund Type: Fiduciary Funds are used to account for assets held by the Village in a trustee capacity or as an agent for individuals, private organiza- tions, other governmental units, and/or other funds. Trust Funds--Trust Funds are used to account for assets held by the Village in a trustee capacity. These include the Policemen's and Firemen's Pension Trust Funds. These funds are accounted for in essentially the same manner as proprie- tary funds. -28- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued r Account Groups: Account groups are used to establish accounting control and accountability for the Village's general fixed assets and general long-term debt. The following are the Village's account _ groups: General Fixed Assets Account Group--This account group is established to account for all fixed assets of the Village, other than those accounted for in the proprietary funds and trust funds. General Long-Term Debt Account Group--This account group is established to account for all long-term debt of the Village except that accounted for in the proprietary funds. _ Basis of Accounting: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Shared revenues remitted from the state government, such as the state motor fuel tax allotments, state income taxes, and state sales taxes are accrued applying the susceptible to accrual concept based upon the month they are collected by the state. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous indi- vidual programs are used as guidance. There are, however, essentially two types of these revenues. In one type, 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 expenditure recorded. In the other type, monies are virtually unrestricted as to _ purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met. -29- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued +- NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued License and permit fees, charges for services (other than enterprise funds), and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned because they are measurable and available. With the exception of interest on long-term debt, expenditures are generally recognized under the modified accrual accounting concept when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the following fiscal year. All proprietary funds and pension trust funds are accounted for using the accrual basis of accounting. Their revenues are recognized when �- they are earned, and their expenses are recognized when they are incurred. Unbilled Waterworks System Fund utility service receivables are recorded at year-end by taking the cycle billings sent to customers after year-end and prorating the amount of days applicable to each fiscal year. Budgetary Accounting: The Village follows these procedures in estab- lishing the budgetary data reflected in the financial statements: 1. Prior to March 1, a proposed operating budget for the fiscal year commencing the following May 1 is prepared by the department heads, reviewed by the Village Manager and Village Treasurer, and submitted to the Board of Trustees for review. The operating budget includes proposed expendi- tures for the General Fund, Special Revenue Fund, Debt Service Fund, Enterprise Funds and Pension Trust Funds. 2. Public hearings are conducted to obtain taxpayer comments. 3. Prior to August 1, the appropriations ordinance (budget), which is 10% greater than the proposed operating budget, is legally enacted through passage of an ordinance. All appropriations lapse at year-end. -30- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued 4. Changes or amendments to the total budgeted expenditures of any fund must be approved by the Board of Trustees. No supplemental appropriations were necessary during the past fiscal year. 5. Expenditures may not legally exceed budgeted appropriations on a fund basis for each legally adopted annual budget. Formal budgetary integration is employed as a management control device during the year for all funds. Village budgets are prepared on a basis of accounting consistent with generally accepted accounting principles (GAAP), except that encumbrances are treated as budgeted expenditures in the year of purchase or commitment to purchase. Moreover, no amounts are budgeted or appropriated for depreciation in the Water and Sports Core Funds, rather capital additions are budgeted. Budgetary comparisons presented in this report are on the budgetary (Non-GAAP) basis. i Adjustments necessary to convert the results of operations at the end of the year on the GAAP basis to the budget basis are as follows: r Governmental Fund Types Capital General Projects Excess of revenues and other financing sources over expenditures and other financing uses--GAAP basis $(613,562) $(36,433) Difference due to: Encumbrances: Expenditures in 1989 of -. amounts encumbered as of April 30, 1988 343,770 - Encumbered at April 30, 1989, but recognized as expenditures for budget purpose (497,731) - Excess of revenues over expenditures for unbudgeted fund - (5,730) Excess of revenues and other financing sources over expenditures and other financing uses--budgetary basis -31- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Encumbrances: Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropria- tion, is employed as an extension of formal budgetary integration in all funds. Encumbrances outstanding in the governmental funds at year-end are reported as reservations of fund balances because they do not constitute expenditures or liabilities. ._ Investments: Investments are stated at cost, which approximates market. Adjustments are made to cost, for any premium or discount, which is amortized over the maturity of the investment. Chapter 85, Section 902 of the Illinois Revised Statutes authorizes the Village to invest in obligations of the United States Treasury and United States agencies, direct obligations of any bank, commercial paper rated within the three highest classifications set by two stand- ard rating services, or money-market funds investing in obligations of the United States Treasury and United States agencies. Inventory: Inventory is valued at cost (first-in, first-out) which approximates market. Inventory in the General Fund consists of expendable supplies held for consumption; inventory in the Sports Core Fund consists of similar expendable supplies and also inventory of the pro shop held for resale. The cost is recorded as an expenditure at the time individual inventory items are utilized or sold. Reported ?- General Fund inventories are equally offset by a fund balance reserve which indicates that they do not constitute "available spending resources" even though they are a component of net current assets. Fixed Assets and Long-Term Liabilities: Fixed assets acquired for use in governmental fund type operations are recorded as expenditures in the fund making the expenditure and are capitalized at cost in the General Fixed Assets Account Group. If actual cost cannot be deter- mined, estimated historical cost is used; donated fixed assets are valued at their estimated fair value on the date donated. Public domain ("infrastructure") general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are capitalized with other general fixed assets. In accordance with generally accepted accounting principles, no depreciation is taken on the general fixed assets. -32- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES--Continued Proprietary fund assets are stated at cost or, if donated, fair market value at the date of donation, in the fund in which they are utilized. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is reported on the proprietary funds' balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. Estimated useful lives are as follows: Buildings 40 years Waterworks system 10-40 years Improvements, other than buildings 10-20 years Tennis courts and pools 15-20 years Equipment 5-10 years Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group. Long- term liabilities of all proprietary funds are accounted for in the respective funds. Vacation pay is computed and earned on a calendar year basis. Vacation earned must be taken before the end of the next calendar year and is, therefore, taken on a first-in, first-out basis. For governmental funds, the portion of accumulated unpaid vacation benefits expected to be liquidated with expendable available financial resources is reported in the individual fund, and the remainder is recorded in the General Long-Term Debt Account Group. Accumulated unpaid vacation pay is accrued when incurred in the proprietary fund types. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. The Village's employees are not eligible for significant postretirement benefits except as provided by the pension _ plans as disclosed in Note G--Retirement Commitments. Total (Memorandum Only) Columns: Total columns represent an aggrega- tion of the fund type and account group financial statements. They are presented for information only and do not represent consolidated financial information. Interfund eliminations have not been made in the aggregation of the data. The Village's property tax is levied each calendar year on all taxable real property located in the Village. The Village levies taxes only for the payment of principal and interest on general obligation long- term debt. -33- _ VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE B--PROPERTY TAXES Property taxes attach as an enforceable lien on property as of Janu- ary 1. In the following year, taxes are levied on March 1 and become due and payable in two installments on June 1 and September 1. Taxes are billed and collected by county officials. The GASB provides that property taxes should be recognized as revenue in the levy year only when they are due and receivable in the current year or when they are due within the year and collected or expected to be collected within 60 days after the end of the current year. As a result, the Village does not recognize property taxes as revenue in the levy year because the taxes are not due and receivable until the following fiscal year. NOTE C--CASH AND INVESTMENTS i At year-end, the carrying amount of the Village's cash and certificates of deposit ("deposits") was $13,392,610 and the bank balance was $13,564,253. The following table summarizes the Village's deposits at April 30, 1989: Bank Balance Insured (FDIC, FSLIC or SIPC) $ 5,337,131 Uninsured: Collateral held by pledging bank's agent in Village's name 7,863,477 Uncollateralized 363,645 13.564.253 The Village's investments are categorized in the following table to �.. give an indication of the level of risk assumed by the Village at April 30, 1989. Category 1 includes investments that are insured or registered or for which securities are held by the Village or its agent _ in the Village's name. Category 2 includes the uninsured and unregis- tered investments for which the securities are held by the broker's or dealer's trust department or agent in the Village's name. Category 3 -34- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE C--CASH AND INVESTMENTS--Continued includes uninsured and unregistered investments for which the securi- ties are held by the broker or dealer, or by its trust department or agent but not in the Village's name. Category Carrying Market 1 2 Amount Value Repurchase agreements $ 3,774,041 $ 3,774,041 $ 3,774,041 U.S. Government securities 5,506,076 5,506,076 5,815,281 U.S. Agency securities 3,483,537 3,483,537 3,634,897 Other $600,000 367,550 967,550 1,044,278 13.131.204 13,731,204 14,268,497 Investment in state treasurer's investment pool 96,089 96,089 $13.827.293 $14.364.586 NOTE D--FIXED ASSETS Changes in general fixed assets for the year ended April 30, 1989, are presented below: Balance at Balance at April 30 April 30 1988 Additions Retirements 1989 Land $ 281,829 $ 281,829 Buildings and improvements 4,889,375 $ 52,417 4,941,792 Furniture and fixtures 271,619 2,748 274,367 Roadway improvements 5,131,879 961,130 6,093,009 Automotive equipment 1,293,050 586,429 $40,000 1,839,479 Other equipment 1,416,510 183,470 1,599,980 Library books 333,899 30,584 364,483 $13^618^161 $1.816.778 4 0 15.394.939 -35- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE D--FIXED ASSETS--Continued Proprietary fund type property, plant, and equipment at April 30, 1989, consisted of the following: Waterworks Total System Sports Enterprise Fund Core Fund Fund Land and improvements $ 215,800 $ 9,795,458 $10,011,258 Buildings and improvements 1,113,032 1,113,032 Waterworks system structure and equipment 9,602,738 9,602,738 Improvements other than buildings 473,906 473,906 Tennis courts and pools 562,612 562,612 Equipment 113,444 352,145 465,589 9,931,982 12,297,153 22,229,135 Less allowances for depreciation 2,933,872 2,081,318 5,015,190 16.998.110 10.215.835 t17,213,9L5 NOTE E--LONG-TERM DEBT General Long-Term Debt Account Group: The following is a summary of transactions in the general long-term debt account group for the year ended April 30, 1989: General Obligation Accrued Recreation Vacation Bonds Liability Total Balance at May 1, 1988 $5,650,000 $84,387 $5,734,387 Retirements (700,000) (700,000) Increase in accrued vacation liability 6,166 6,166 Balance at April 30, 1989 $4,950,000 t5,040,55a -36- . VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE E--LONG-TERM DEBT--Continued A special election on June 21, 1977, authorized and approved the issuance of $10,270,000 General Obligation Recreation Bonds--Sports Core. Proceeds of these bonds were used to pay the cost of the acquisition of approximately 269 acres of the Butler International Sports Core and to improve and redevelop the existing Village golf course. The bonds were sold as of September 1, 1977 for a price of $10,270,408 plus accrued interest of $71,611.50. Principal on the bonds is due serially December 1, 1979 through December 1, 1994. Interest is payable semiannually on June 1 and December 1, at rates from 4.3% to 4.9%. The Village levies taxes for retirement of the bonds which are accounted for by the Debt Service Fund. r Waterworks Revenue Bonds: The following is a summary of transactions for the year ended April 30, 1989: Waterworks Revenue Bonds 1973 Series 1976 Series Total Balance at May 1, 1988 $1,750,000 $1,150,000 $2,900,000 Retirements (175,000) 250,000 (425,000) Balance at April 30, 1989 t2,475,M The Waterworks Revenue Bonds were issued to fund the acquisition and expansion of the Village's water system. The $3,300,000 Series 1973 bonds were sold as of February 1, 1973. Principal on the bonds is due serially May 1, 1976 through May 1, 1996. Semiannual interest is pay- able on May 1 and November 1 at rates from 4% to 6%. The $3,000,000 1976 Series bond is due serially May 1, 1978 through May 1, 1992. Interest is payable semiannually on May 1 and November 1 at rates of 4.4% to 5.75%. Both series are payable from water revenues and are accounted for in the Waterworks System Fund. -37- _ VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE E--LONG-TERM DEBT--Continued Debt Service Requirement: The annual payments to amortize all long-term debt outstanding, includ- ing interest, as of April 30, 1989, are as follows: General Obligation Waterworks Year Ended Recreation Bonds Revenue Bonds April 30 Principal Interest Principal Interest Total 1990 $ 700,000 $238,000 $ 475,000 $127,150 $1,540,150 1991 800,000 205,800 500,000 101,138 1,606,938 1992 800,000 167,400 525,000 73,487 1,565,887 -- 1993 850,000 129,000 225,000 44,400 1,248,400 1994 900,000 88,200 225,000 32,700 1,245,900 1995 900,000 44,100 250,000 21,000 1,215,100 1996 - - 275,000 11,000 286,000 14,9 .000 t2,475,M 41 8.708.375 NOTE F--REVENUE BOND COVENANTS The ordinance authorizing the issuance of Waterworks Revenue Bonds Series 1973 and 1976 requires that the following separate accounts be maintained in the Waterworks System Fund. On the first business day of each month, all monies held in the Fund are to be transferred to the designated accounts as noted below: Accounts Amount Operation and Maintenance An amount sufficient to pay the Account reasonable expense of operation ... and maintenance for the next month. This account had a balance of $114,697 at April 30, 1989. Bond and Interest Account Amount equal to one-tenth and one-fifth of the next maturing principal and interest payments, respectively. This account had a zero balance at April 30, 1989. 4 -38- i VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE F--REVENUE BOND COVENANTS--Continued '- Accounts Amount Bond Reserve Account $4,500 each month until all bonds of this fund have been paid or payment provided for. This account had a balance of $760,500 at April 30, 1989. Depreciation, Improvement $8,250 each month (or a greater and Extension Account amount, as designated by the Board) until a maximum of $400,000 is on deposit in said r account. This account has a balance of $400,000 at April 30, 1989. Surplus Revenue Account All surplus funds remaining after providing for all of the deposits listed above. This account had a balance of $2,583,582 at April 30, 1989. Funds accumulated in the bond reserve account shall be used only for the payment of interest or principal whenever there exists a deficiency in the bond and interest account. However, whenever the balance in said account is equal to the maximum principal and interest require- ments of all outstanding bonds, the surplus may be transferred to the depreciation improvement and extension account or the surplus revenue account at the discretion of the President and Board of Trustees. Funds accumulated in all but the operation and maintenance account have been classified as restricted assets on the combined balance sheet at April 30, 1989. Village employees are covered under three separate retirement plans. Full-time Village police officers and fire fighters are covered by separate pension trust funds established in accordance with state law. Other full-time employees are covered by the Illinois Municipal Retirement Fund (statewide public employees retirement system). -39- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS Illinois Municipal Retirement Fund I. Plan Description The Village contributes to the Illinois Municipal Retirement Fund ("IMRF"), an agent-multiple-employer public employee retirement system that acts as a common investment and administrative agent for 2,396 local governments and school districts in Illinois. The ■- Village's total payroll for the year ended April 30, 1989 was $5,722,396. Of this amount, $1,726,898 in payroll earnings were reported to and covered by the IMRF system. a All employees hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. Pension benefits vest after eight years of service. Par- ticipating members who retire at or after age 60 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. IMRF also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute. Participating members are required to contribute 4.5% of their annual salary to IMRF. The Village is required to contribute the remaining amounts necessary to fund the System, using the actuarial basis specified by statute. 2. Funding Status and Progress The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to .. help users assess the funding status of IMRF on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The # measure is the actuarial present value of credited projected bene- fits and is independent of the funding method used to determine contributions to IMRF. -40- i w VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued The pension benefit obligation was computed as part of an actuarial valuation performed as of December 31, 1988. Significant actuarial assumptions used in the valuation include (a) a rate of return on the investment of present and future assets of 7% per year com- pounded annually, (b) projected salary increases of 3.75% per year compounded annually, attributable to inflation, (c) additional projected salary increases of 1% per year, attributable to seniority/merit, and (d) postretirement benefit increases of 3% annually. Total unfunded pension benefit obligation applicable to the Village's employees was $384,186 at December 31, 1988, determined as follows: Pension benefit obligation: Terminated employees not yet receiving benefits $ 233,984 Current employees: Accumulated employee contributions including allocated investment earnings 471,240 .r Employer-financed vested 861,677 Employer-financed nonvested 149,063 TOTAL PENSION BENEFIT OBLIGATION 1,715,964 Net assets available for benefits at cost (market value is $1,428,432) 1,331,778 UNFUNDED PENSION BENEFIT OBLIGATION $ 384.186 The pension benefit obligation applicable to retirees and benefici- aries currently receiving benefits is not included in the above schedule due to the fact that this obligation was transferred from the Village to IMRF as a whole when the annuity became payable. Current-year changes in the actuarial assumptions, benefit provi- sions, and methodology are reflected in the December 31, 1988 pension benefit obligation shown above. This amount has been calculated by the IMRF actuary using the measure described below. The dollar effect of these changes on the pension benefit obligation was not economically determinable on an individual employer basis by IMRF. -41- �. VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued i 3. Actuarially Determined Contribution Requirements and Contribution Made The IMRF funding policy provides for actuarially determined monthly contributions at rates that, for individual employees, accumulate assets gradually over time so that sufficient assets will be available to pay benefits when due. The rate for the Village's employee group as a whole has tended to remain level as a percentage of annual covered payroll. The contribution rate for normal cost is determined using the entry age normal actuarial funding method. IMRF used the level percentage of payroll method to amortize the unfunded liability over an open-ended 40-year period. The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation as described previously, except that the changes described below were not taken into account. The contributions by the Village to IMRF for 1988 of $104,304 were charged to the Village's account and were based on a contribution rate that was calculated in accordance with actuarially determined �. requirements computed through an actuarial valuation performed as of December 31, 1986. The contribution consisted of (a) $45,072 normal cost (2.61% of 1989 covered payroll), (b) $47,662 amortiza- tion of the unfunded actuarial accrued liability (2.76% of 1989 covered payroll), and (c) $11,570 death and disability cost (.67% of 1989 covered payroll). The employer contributed $104,304 (6.04% of 1989 covered payroll); employees contributed $77,710 (4.5% of 1989 covered payroll). WW -42- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued 4. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Pension benefit obligation information is available only for 1988 and 1989. 1989 1988 Net assets available for benefits as a percent of the pension benefit obligation (PBO) 83.24% 80.21% Unfunded (assets in excess of) PBO as a percent of annual covered payroll (expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for analysis purposes) 22.24 19.17 Employer contributions as a percent of annual covered payroll 6.04 5.76 Police and Firefighter's Pension Plans 1. Plan Descriptions Substantially all uniformed police personnel are covered by the Police Pension Plan which is a defined benefit single-employer plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contributions are governed by Illinois State Statutes (Chapter 108 1/2, Article 3) and may be amended only by the Illinois legislature. The Village of Oak Brook accounts for the Plan as a pension trust fund. The Village's payroll for employees covered by the Plan for the year ended April 30, 1989 was $1,296,036 out of a total Village payroll of $5,722,396. At April 30, 1989 the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 7 Current employees 37 The Police Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 years of creditable service are entitled to receive -43- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued s NOTE G--RETIREMENT COMMITMENTS--Continued an annual retirement benefit of 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 pension shall be increased by 2% of such salary for each additional year of service over 20 years, up to 30 years, and 1% of such salary for each additional year of service over 30 years, to a maximum of 75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a police officer who retires after January 1, 1986 shall be increased annually, following the first anniversary date and be paid upon reaching the age of at least 55 years, by 3% of the originally granted pension for each full year that has elapsed since the pension began, and by an additional 3% of the originally granted pension in January of each year thereafter. Covered employees are required to contribute 9% 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 as actuarially determined by an enrolled actuary. By the year 2020 the Village's contribution must accu- mulate to the point where the past service cost for the Police Pension Plan is fully funded. Substantially all fire personnel are covered by the Firefighter's Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single-employer pension plan, the defined benefits as well as the employee and employer contribution levels are mandated by Illinois State Statutes (Chapter 108 1/2, Arti- cle 4) and may be amended only by the Illinois legislature. The Village of Oak Brook accounts for the Plan as a pension trust fund. The Village's payroll for employees covered by the Plan for the year ended April 30, 1989 was $1,174,639 out of a total Village payroll of $5,722,396. At April 30, 1989, the Firefighter's Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits and terminated employees entitled to benefits but not yet receiving them 7 Current employees 35 -44- i VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued The Firefighter's Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 years of creditable service are entitled to receive an annual retirement benefit of one-half of the salary attached to the rank held in the fire service at the date of retire- ` ment. The pension shall be increased by 1/12 of 2% of such monthly salary for each additional month of service over 20 years, up to 30 years of service, and 1/12 of 1% of such salary for each additional -- month of service over 30 years, to a maximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly pension of a fire fighter who retires after January 1, 1986 shall be increased annually, following the first anniversary date and be paid upon reaching the age of at least 55 years, by 3% of the originally granted pension for each full year that has elapsed since the pension began, and by an additional 3% in each January thereafter. Covered employees are required to contribute 8 1/4% of their base salary to the Firefighter's Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated inter- est. The Village is required to contribute the remaining amounts -- necessary to finance the Plan as actuarially determined by an enrolled actuary. By the year 2020, the Village's contribution must accumulate to the point where the past service cost for the Firefighter's Pension Plan is fully funded. 2. Funding Status and Progress The amount shown below as the "pension benefit obligation" for the Police Pension Plan and the Firefighter's Pension Plan is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. This measure is the actuarial present value of audited projected benefits and is intended to help users assess the funding status of the Plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits -45- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued w NOTE G--RETIREMENT COMMITMENTS--Continued when due, and make comparisons among other public employee retirement plans. This measure is independent of the funding method used to determine contributions to the Plans. Police Firefighter's Pension Pension Actuarial valuation date April 30, 1988 April 30, 1988 ... Significant actuarial assumptions: a) Rate of return on investment 7.0% 7.0% of present and future compounded compounded _ assets annually annually b) Projected salary increases-- 5.5% 5.5% attributable to inflation compounded compounded annually annually c) Additional projected salary (Note--separation information increases--attributable to for b) and c) not available) seniority/merit d) Postretirement benefit 3.0% 3.0% increases simple interest compounded annually annually Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated -- employees not yet receiving benefits $1,696,381 $1,773,408 Current employees: Accumulated employees contributions including allocated investment earnings 5,657,312 4,692,116 Employer-financed vested (Note 1) (Note 1) Employer-financed nonvested (Note 1) (Note 1) TOTAL PENSION BENEFIT OBLIGATION 7,353,693 6,465,524 _ Net assets available for benefits, at cost 6,408,264 6,735,173 UNFUNDED (ASSETS IN EXCESS OF) PENSION BENEFIT OBLIGATION $ 945,429 $ (269,649) Note 1--Separate information for current employees is not reported by the Illinois Department of Insurance. -46- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued r NOTE G--RETIREMENT COMMITMENTS--Continued 3. Actuarially Determined Contribution Requirements and Contribution Made The Plans' funding policies provide for actuarially determined periodic contributions at rates that, expressed as percentages of annual covered payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age normal funding method. The Plans also use the level percentage of ... payroll method to amortize the unfunded liability over a 40-year period. The significant actuarial assumptions used to compute the actuarially determined contribution requirements are the same as _ those used to compute the pension benefit obligation as described above. Police Firefighter's Pension Pension Actuarial valuation date April 30, 1988 April 30, 1988 Actuarially determined contribution requirements--employer: As a dollar amount: Normal cost $180,630 $237,226 Amortization of unfunded actuarial accrued liability 74,979 - Credit for surplus - (18,875) As a percent of fiscal 1989 covered payroll: _ Normal cost 14.0% 20.2% Amortization of unfunded actuarial accrued liability 5.8 - 19.8% Contribution made during fiscal 1989: As a dollar amount: Employer $212,268 $201,205 Employee 114,088 98,367 As a percent of fiscal 1989 covered payroll: Employer 16.4% 17.2% Employee 8.8 8.4 25.2% -47- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE G--RETIREMENT COMMITMENTS--Continued The Village's contribution to both the Police and Firefighter's Pension Plans are established at 17.5% of base salaries. 4. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Pension benefit obligation information is available only for 1988 and 1989. Police Firefighter's Year Pension Pension Net assets available for benefits: As a percent of the pension benefit obligation (PBO) (as of April 30, 1988 actuarial 1988 90 % 107 % valuation) 1989 100 104 Unfunded (assets in excess of) PBO: As a percent of annual covered payroll (expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation for 1988 51.5 (33.8) analysis purposes) 1989 72.9 (23.0) Employer contributions: As a percent of annual covered 1987 16.2 15.4 payroll: 1988 15.95 16.02 ... Required 1989 16.4 17.2 1987 $203,271 $190,756 1988 217,180 230,788 1989 255,609 218,350 Made 1987 203,271 190,756 1988 196,043 189,011 1989 212,268 201,205 -48- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE H--INTERFUND BALANCES Individual fund interfund receivable and payable balances at April 30, ..t 1989 are as follows: Amounts Payable From General Motor Fuel Amounts Payable to Fund Tax Fund Total General Fund $76,361 $ 76,361 Sports Core Construction Fund $21,871 21,871 Debt Service 37 37 Capital Projects Fund 1,341 1,341 Policemen's Pension Fund 17,472 17,472 "Firefighter's Pension Fund 16,041 16,041 1133,121 NOTE I--FUND DEFICITS The Sports Core Fund had a deficit in retained earnings at April 30, 1988 of $1,210,302, which is due primarily to depreciation expense. _ The deficit is expected to be eliminated in the course of future operations of the Sports Core. NOTE J--JOINT VENTURES Intergovernmental Risk Management Agency: Intergovernmental Risk Management Agency ("IRMA") is a voluntary coop- erative agency consisting of 44 Illinois municipal governmental units. Its purpose is to manage and fund first-party property losses and third-party liability claims (including workers ' compensation) of its member municipalities. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. The Village of Oak Brook joined IRMA on January 1, 1979, and, by contract, will participate in and be a member thereof until December 31, 1989. At April 30, 1988, management knows of no claim, asserted or unasserted, which if asserted and paid, would have a materially adverse effect on the financial position of the various funds of the Village. -49- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE J--JOINT VENTURES--Continued Each member municipality assumes the first $1,000 of each and every -- loss or claim. The next $249,000 of any such loss or claim is paid by the IRMA pool. Commercial insurance would then pay to a limit of $1,000,000 per occurrence on a liability claim (with certain sublimits) and up to a limit of $30,000,000 per occurrence (with certain sub- limits) on a first-party property loss (including workers' compensation up to statutory requirements). In 1985, the IRMA pool was protected by $2,000,000 annual aggregate excess insurance that attached at $5,000,000, and a $250,000 per occurrence stop loss. In 1986, the IRMA pool was protected by $2,000,000 annual aggregate excess insurance that attached at $6,350,000, and a $250,000 per occurrence stop loss. IRMA did not purchase aggregate excess insurance coverage for 1987. IRMA management consists of a Board of Directors comprised of one representative from each member. In addition, there are two officers, a risk manager and a treasurer. The Village of Oak Brook exercises no control over the activities of the Agency. -- The latest available financial statements of IRMA, dated December 31, 1988, show the following: .,. Village of Oak Brook IRMA Share (3.44%) Total assets $28,599,467 $983,822 Total liabilities 28,599,467 983,822 Total revenue 8,570,338 294,820 �•- Total expense 8,570,338 294,820 IRMA had no debt outstanding at December 31, 1988. Intergovernmental Personnel Benefit Cooperative: IPBC acts solely as an administrative agency to receive, process and pay such claims as may come within the benefit program of each member. At April 30, 1989, management knows of no claim, asserted or unasserted, which if asserted and paid would have a materially adverse effect on the financial position of the various funds of the Village. -50- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued r NOTE J--JOINT VENTURES--Continued The latest available financial statements of IPBC, dated June 30, 1988, show the following: Village of Oak Brook IPBC Share Total assets $3,703,636 Total liabilities 3,703,636 Members' contributions and interest income 6,892,539 $366,439 Claim payments and insurance premiums 6,861,465 366,181 The Village's share of IPBC's assets and liabilities is not known. IPBC had no debt outstanding at June 30, 1988. Du Page Water Commission ("Commission")--The Commission exists and operates under the Water Commission Act of 1985 to provide facilities for receiving, storing and transmitting Lake Michigan water to municipalities and other customers in Du Page County. The Village does not exercise control over the activities of the Commission. The Village accounts for this joint venture, which is financed by the Water Fund, using the equity method. The Commission will begin to provide water to customers in 1992. The Village's investment in the Du Page Water Commission at April 30, 1989 is $557,463. As the Commission's facilities are presently under -- construction, no operating revenue or expenses have been recognized. The Du Page Water Commission Board consists of 11 Board members appointed by the Du Page County Board and Mayors of Municipalities within the Du Page County districts. Selected financial information of the Du Page Water Commission at April 30, 1989 is as follows: _ Total assets $408,344,124 Total liabilities 362,952,740 Total equity 45,391,384 Debt outstanding 345,969,430 -51- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued ..- NOTE K--SEGMENT INFORMATION FOR ENTERPRISE FUNDS The Village maintains two enterprise funds that provide water and golf and other recreation services to the community. Segment information for the year ended April 30, 1989, is as follows: Waterworks Sports System Fund Core Fund Operating revenues $ 2,583,218 $ 1,885-,407 Depreciation 262,926 244,445 Operating income (loss) 1,025,724 (16,746) Operating transfers in - 12,950 Operating transfers out (185,000) - Nonoperating revenues 581,392 5,408 Nonoperating expenses 156,333 31,404 Net income (loss) 1,265,783 (29,792) Property, plant and equipment: Additions 697,987 504,911 Net working capital 2,570,150 (400,547) Total assets 15,083,123 10,495,353 Bonds outstanding 2,450,242 - Total equity 12,046,934 9,815,288 NOTE L--COMMITMENTS On September 1, 1986, the Village entered into a noncancelable water supply contract, which expires on February 24, 2024, with the Du Page Water Commission ("Commission"). Under the contract, the Village has .r agreed to purchase, beginning in 1992, an amount of Lake Michigan water necessary to meet the potable water requirements of all of its then cur- rent customers served by the Village's waterworks system. On February 10, 1987, the Commission issued $200,000,000 of Water Revenue Bonds, with serial bonds maturing on May 1, 1994 through 2001, and term bonds maturing on May 1, 2007 and May 1, 2014. Interest rates are fixed at 6.84%. The Commission will allocate the cost to retire the Water Revenue Bonds to the participating villages based on their usage of Lake Michigan water. The village's share of this debt is not known at this time. The Village has no other material commitments or operating lease agreements. -52- i VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS--Continued NOTE M--CONTINGENCIES The Village participates in the Illinois Motor Fuel Tax program. This program is subject to program compliance audits by the grantor or its representative. The audit of this program for or including the year then ended April 30, 1989 has not yet been conducted. Accordingly, the Village's compliance with applicable grant requirements will be estab- lished at some future date. The amount, if any, of expenditures that may be disallowed by the granting agency cannot be determined at this time, although the Village expects such amounts, if any, to be immaterial. _ There are several pending lawsuits in which the Village is involved. Management believes that the potential claims against the Village resulting from such litigation would not materially affect the financial statements of the Village. NOTE N--BOND DISCOUNTS In governmental fund types, bond discounts and issuance costs are recognized in the current period. Bond discounts and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using the bonds-outstanding method, which approximates the effective interest method. Bond discounts are presented as a reduction of the face amount of bonds payable whereas issuance costs are recorded as deferred charges. NOTE O--INTERFUND TRANSACTIONS Quasi-external 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, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. -53- �- VILLAGE OF OAK BROOK, ILLINOIS POLICE PENSION FUND REVENUES BY SOURCE AND EXPENSES BY TYPE April 30, 1989 Revenues by source Contribution as a Percentage Fiscal Employee Employer Investment Other of Covered Year Contributions Contributions Income Contributions Total Payroll 1980 $ 57,891 $197,269 $115,613 $100 $370,873 Note 1 1981 69,016 202,701 170,713 100 442,530 Note 1 1982 77,482 190,768 230,458 100 498,808 Note 1 1983 81,375 201,044 332,040 100 614,559 .20 1984 87,000 196,083 375,794 150 659,027 .18 1985 119,298 199,688 449,674 - 768,660 .17 1986 99,357 197,994 414,235 - 711,586 .17 1987 110,689 203,271 510,982 - 824,942 .16 1988 110,697 196,043 468,630 100 775,470 .16 1989 114,088 212,268 506,724 152 833,232 .16 Expenses by type Fiscal Administrative Yeag Benefits Expenses Refunds Total 1980 $ 27,907 $ 505 $ 3,917 $ 32,329 1981 27,426 580 1,857 29,863 1982 27,908 505 14,063 42,476 1983 27,908 600 4,504 33,012 1984 38,466 1,065 30,301 69,832 1985 41,985 1,085 - 43,070 1986 55,664 850 - 56,514 1987 100,585 1,211 Note 2 101 ,796 1988 93,126 1,631 19,592 114,349 1989 114,024 4,645 - 118,669 w, Note 1--Information concerning covered payroll is not available prior to 1983. Note 2--Separate information is not available for refunds for fiscal 1987. -55- VILLAGE OF OAK BROOK, ILLINOIS POLICE PENSION FUND ANALYSIS OF FUNDING PROGRESS (6) (4) Unfunded (1) Unfunded Pension Benefit Net Assets (2) (3) Pension (5) Obligation as Available Pension Percentage Benefit Annual a Percentage of Fiscal for Benefit Funded Obligation Covered Covered Payroll Year Benefits* Obligation (1) = (2) (2) - (1) Payroll (4) =.` (5) 1988 $5,726,809 $6,359,386 .90 $632,577 $1,229,426 .51 1989 6,408,264 7,353,693 .87 945,429 1,296,036 .73 Note--Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the Police Pension Fund's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the PERS. Trends in unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the Police Pension Fund's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the PERS. Information concerning the pension benefit obligation is available only for 1988 and 1989. *At cost. -56- VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTER'S PENSION FUND REVENUES BY SOURCE AND EXPENSES BY TYPE April 30, 1989 Revenues by source Contribution as a Percentage Fiscal Employee Employer Investment Other of Covered Year Contributions Contributions Income Contributions Total Payroll 1980 $53,657 $250,361 $106,558 $35 $410,611 Note 1 1981 59,795 270,238 163,417 - 493,450 Note 1 •- 1982 65,916 271,802 261,593 - 599,311 Note 1 1983 71,422 285,549 350,184 - 707,155 .29 1984 75,842 173,758 419,533 - 669,133 .17 1985 80,492 176,337 451,344 - 708,173 .16 1986 84,616 185,608 531,270 - 801,494 .17 1987 95,857 190,756 488,570 - 775,183 .15 1988 97,322 189,011 459,037 - 745,370 .16 1989 98,367 201,205 459,707 - 759,279 .17 Expenses by type Fiscal Administrative Year Benefits Expenses Refunds Total. 1980 $ 23,872 $ 505 $12,759 $ 37,136 1981 20,646 792 1,507 22,945 1982 20,646 740 - 21,386 1983 20,646 792 - 21,438 1984 20,646 955 - 21,601 ... 1985 20,646 2,326 - 22,972 1986 40,422 1,047 - 41,469 1987 71,291 2,568 - 73,859 _ 1988 113,326 1,724 - 115,050 1989 125,618 1,102 - 126,720 Note 1--Information concerning covered payroll is not available prior to 1983. -57- i VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTER'S PENSION FUND ANALYSIS OF FUNDING PROGRESS — (4) (6) Unfunded Unfunded Pension (Assets in (Assets in Exces (1) Excess of) of) Benefit Net Assets (2) (3) Pension (5) Obligation as Available Pension Percentage Benefit Annual a Percentage of Fiscal for Benefit Funded Obligation Covered Covered Payroll Year Benefits* Obligation (1 + (2) (2) - (1) Payroll (4) s (5) 1988 $6,095,213 $5,696,360 1.07 $(398,853) $1,179,992 (.34) 1989 6,735,173 6,465,524 1.04 (269,649) 1,174,639 (.23) Note--Analysis of the dollar amounts of net assets available for benefits, pension benefit obligation, and unfunded pension benefit obligation in isolation can be misleading. Expressing the net assets available for benefits as a percentage of the pension benefit obligation provides one indication of the Firefighter's Pension Fund's funding status on a going-concern basis. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the PERS. Trends in unfunded pension benefit obligation and annual covered payroll are both affected by inflation. Expressing the unfunded pension benefit obligation as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the Firefighter's Pension Fund's progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller this percentage, the stronger the PERS. Information concerning the pension benefit obligation is available only for 1988 and 1989. *At cost. -58- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (NON-GAAP BASIS)--BUDGET AND ACTUAL Year Ended April 30, 1989 Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) REVENUES Intergovernmental: Municipal sales tax $6,443,723 $ 6,400,000 $ 43,723 Illinois state income tax 252,387 218,300 34,087 York Township road and bridge tax 140,476 150,500 (10,024) ._ Foreign fire insurance tax 29,828 24,500 5,328 6,866,414 6,793,300 73,114 Licenses and permits 261,081 278,580 (17,499) Service charges 263,759 255,100 8,659 Fines arid penalties 166,238 148,000 18,238 Interest on investments 329,760 300,000 29,760 Miscellaneous 234,158 157,500 76,658 1,254,996 1,139,180 115,816 TOTAL REVENUES 8,121,410 7,932,480 188,930 EXPENDITURES Legislative 327,739 321,308 (6,431) General government .1,196,035 1,056,486 (139,549) Public safety 4,768,208 4,981,030 212,822 Public works 2,149,873 2,430,920 281,047 Culture and recreation 202,454 219,851 17,397 TOTAL EXPENDITURES 8,644,309 9,009,595 365,286 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (522,899) (1,077,115) 554,216 OTHER FINANCING SOURCES (USES) Operating transfers in 434,330 260,700 173,630 Operating transfers out (678,954) (310,000) (368,954) TOTAL OTHER FINANCING SOURCES (USES) (244,624) (49,300) (195,324) EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (767,523) $(1.126.415) Fund balance at May 1, 1988 5,613,310 FUND BALANCE AT APRIL 30, 1989 $4.845.787 See accompanying notes to financial statements. -59- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES (NON-GAAP BASIS)--BUDGET AND ACTUAL Year Ended April 30, 1989 Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) " LEGISLATIVE Board of Trustees: Personal services $ 7,802 $ 7,300 $ (502) _ Contractual services 278,179 280,593 2,414 Fixed charges 4,876 2,994 (1,882) Commodities 14,899 6,540 (8,359) 305,756 297,427 (8,329) Plan Commission: Personal services 4,772 4,740 (32) Contractual services 3,158 250 (445) Fixed charges 681 628 (2,516) Commodities 701 75 (626) 9,312 5,693 (3,619) Board of Fire and Police: Contractual services 4,653 10,390 5,737 Fixed charges 175 200 25 Commodities 24 50 26 4,852 10,640 5,788 Zoning Board of Appeals: Personal services 4,772 4,740 (32) _ Contractual services 2,136 2,080 (56) Fixed charges 681 628 (53) Commodities 230 100 (130) 7,819 7,548 (271) TOTAL LEGISLATIVE 327,739 321,308 (6,431) GENERAL GOVERNMENT Legal: Personal services 65,507 63,279 (2,228) Contractual services 28,887 4,900 (23,987) Fixed charges 13,377 17,911 4,534 Commodities 3,976 2,510 (1,466) 111,747 88,600 (23,147) See accompaying notes to financial statements. -60- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) GENERAL GOVERNMENT--Continued: Village Manager's office: Personal services $ 208,588 $ 200,102 $ (8,486) Contractual services 13,064 9,267 (3,797) Fixed charges 51,834 49,409 (2,425) Commodities 5,161 4,465 (696) Capital outlay 1,281 1,615 334 279,928 264,858 (15,070) Finance and accounting: Personal services 175,740 173,200 (2,540) Contractual services 107,840 50,790 (57,050) Fixed charges 44,459 41,520 (2,939) Commodities 8,497 5,845 (2,652) '- Capital outlay 27,033 3,000 (24,033) 363,569 274,355 (89,214) Engineering: Personal services 152,184 148,200 (3,984) Contractual services 82,749 36,550 (46,199) Fixed charges 33,827 31,589 (2,238) Commodities 2,465 2,800 335 Capital outlay 1,239 1,700 461 272,464 220,839 (51,625) Village hall: Personal services 62,790 59,039 (3,751) Contractual services 26,423 82,380 55,957 Fixed charges 24,327 19,990 (4,077) Commodities 16,989 15,525 (1,724) Capital outlay 37,798 30,900 (6,898) 168,327 207,834 39,507 TOTAL GENERAL GOVERNMENT 1,196,035 1,056,486 (139,549) PUBLIC SAFETY Police service: Personal services 1,714,449 1,706,903 (7,546) Contractual services 89,837 103,165 13,328 Fixed charges 529,594 556,171 26,577 Commodities 82,567 85,490 2,923 Capital outlay 67,517 63,495 (4,022) '- 2,483,964 2,515,224 31,260 See accompanying notes to financial statements. -61- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) PUBLIC SAFETY--Continued: Fire service: Personal services $1,279,228 $1,278,598 $ (630) Contractual services 43,831 64,195 20,364 Fixed charges 411,745 437,111 25,366 Commodities 36,327 43,434 7,107 Capital outlay 113,533 119,000 5,467 _ 1,884,664 1,942,338 57,674 Emergency medical service: Personal services 98,886 117,236 18,350 Contractual services 4,170 12,465 8,295 Fixed charges 20,465 28,953 8,488 Commodities 9,036 10,625 1,589 Capital outlay 9,606 49,664 40,058 142,163 218,943 76,780 Bureau of inspection: Personal services 175,941 217,572 41,631 Contractual services 27,499 28,975 1,476 Fixed charges 46,282 48,453 2,171 Commodities 6,679 6,925 246 Capital outlay 1,016 2,600 1,584 257,417 304,525 47,108 TOTAL PUBLIC SAFETY 4,768,208 4,981,030 212,822 PUBLIC WORKS Administration: Personal services 72,580 72,435 (145) Contractual services 37,720 46,800 9,080 Fixed charges 102,789 107,031 4,242 Commodities 4,224 4,150 (74) 217,313 230,416 13,103 Street maintenance: Personal services 224,613 230,372 5,759 Contractual services 41,625 31,290 (10,335) _ Fixed charges 32,693 30,696 (1,997) Commodities 113,862 119,870 6,008 Capital outlay 111,624 145,350 33,726 524,417 557,578 33,161 See accompanying notes to financial statements. -62- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Variance Budgetary Favorable Basis Budget (Unfavorable) _ PUBLIC WORKS--Continued Street light and traffic control: Personal services $ 22,930 $ 18,154 $ (4,776) Contractual services 127,613 140,980 13,367 Fixed charges 6,731 5,960 (771) Commodities 27,124 36,880 9,756 Capital outlay 497 700 203 184,895 202,674 17,779 Capital improvements: -" Contractual services 98,286 105,350 7,064 Capital outlay 1,002,016 1,201,500 199,484 1,100,302 1,306,850 206,548 Municipal garage: Personal services 81,226 72,018 (9,208) Contractual services 17,841 28,650 10,809 Fixed charges 10,703 9,859 (844) Commodities 12,086 14,375 2,289 Capital outlay 1,090 8,500 7,410 122,946 133,402 10,456 TOTAL PUBLIC WORKS 2,149,873 2,430,920 281,047 CULTURE AND RECREATION Library: Personal services 93,089 95,048 1,959 Contractual services 22,041 27,382 5,341 Fixed charges 36,881 37,813 932 Commodities 11,318 10,710 (608) Capital outlay 39,125 48,898 9,773 TOTAL CULTURE AND RECREATION 202,454 219,851 17,397 TOTAL EXPENDITURES 44QQ 19.009.595 t See accompanying notes to financial statements. -63- REQUIRED SUPPLEMENTARY INFORMATION -54- .r VILLAGE OF OAK BROOK, ILLINOIS CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET April 30, 1989 and 1988 Sports Core Equipment Totals Construction Replacement 1989 1988 ASSETS Cash $ 47 $ 47 $ - Investments $104,898 192,015 296,913 219,406 Due from other funds 1,341 1,341 115,328 TOTAL ASSETS X104=8981 4 9g• Q� 44 FUND EQUITY Fund balance: Unreserved--designated for subsequent year's expenditures $193,403 $193,403 $235,566 Undesignated $104,898 104,898 99,168 TOTAL FUND EQUITY 1 4 4 4 .r See accompanying notes to financial statements. T -64- VILLAGE OF OAK BROOK, ILLINOIS CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Years Ended April 30, 1989 and 1988 Sports Core Equipment Totals Construction Replacement 1989 1988 Revenues--interest on -� investments $ 5,730 $ 11,475 $ 17,205 $ 6,329 Expenditures 420,073 420,073 - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 5,730 (408,598) (402,868) 6,329 Other financing sources-- operating transfers in 366,435 366,435 114,462 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES 5,730 (42,163) (36,433) 120,791 Fund balances at May 1, 1988 99,168 235,566 334,734 213,943 FUND BALANCES AT APRIL 30, 1989 See accompanying notes to financial statements. -65- VILLAGE OF OAK BROOK, ILLINOIS ENTERPRISE FUNDS COMBINING BALANCE SHEET April 30, 1989 and 1988 Waterworks Sports Totals System Core 1989 1988 ASSETS Current assets: Cash $ 114,697 $ 87,197 $ 201,894 $ 26,264 Investments 2,542,931 47,050 2,589,981 1,594,816 Receivables (net, where applicable, of allowances for -- uncollectibles): Customers: Billed water sales 140,578 140,578 158,520 Unbilled water sales 145,590 145,590 131,501 Accrued interest 215,743 215,743 96,117 Other 6,558 29,012 35,570 46,936 508,469 29,012 537,481 433,074 -' Due from other funds 21,871 21,871 Other assets 6,252 6,252 3,753 Inventory 88,136 88,136 38,433 TOTAL CURRENT ASSETS 3,166,097 279,518 3,445,615 2,096,340 Restricted assets-- investments 4,351,453 4,351,453 5,504,524 Investment in joint venture 577,463 577,463 - Property, plant and -- equipment 9,931,982 12,297,153 22,229,135 21,026,237 Less allowance for depreciation (2,933,872) (2,081,318) (5,015,190) (4,507,819) _ 6,998,110 10,215,835 17,213,945 16,518,418 TOTAL ASSETS 115,093,123 10.495,353 t25,588,La t24.119.28-2- See 24.119.282See accompanying notes to financial statements. -66- .. Waterworks Sports Totals System Core 1989 1988 LIABILITIES AND FUND EQUITY Current liabilities: Accounts payable $ 582,308 $ 444,605 $ 1,026,913 $ 368,323 Accrued payroll and +- vacation 11,974 38,354 50,328 31,244 Customer deposits 1,665 197,106 198,771 199,450 Due to other funds 23,962 ,.. TOTAL CURRENT LIABILITIES 595,947 680,065 1,276,012 622,979 Long-term liabilities: Revenue bonds outstanding--1973 issue 1,575,000 1,575,000 1,750,000 Revenue bonds r. outstanding--1976 issue 900,000 900,000 1,150,000 Unamortized bond discounts on 1973 and 1976 issues (24,758) (24,758) (29,928) TOTAL LONG-TERM .� LIABILITIES 2,450,242 2,450,242 2,870,072 TOTAL LIABILITIES 3,046,189 680,065 3,726,254 3,493,051 ;- Fund equity: Contributed capital 11,025,590 11,025,590 11,025,590 Retained earnings (deficit): Reserved under revenue bond ordinance 3,858,779 3,858,779 3,744,082 Unreserved 8,188,155 (1,210,302) 6,977,853 5,856,559 TOTAL RETAINED EARNINGS (DEFICIT) 12,046,934 (1,210,302) 10,836,632 9,600,641 ... TOTAL FUND EQUITY 12,046,934 9,815,288 21,862,222 20,626,231 TOTAL LIABILITIES AND FUND EQUITY tl5,093,123 $10_495_353 $25.588.476 $24.119.282 .r -66- VILLAGE OF OAK BROOK, ILLINOIS ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS (DEFICIT) Year Ended April 30, 1989 Waterworks Sports Totals System Core 1989 1988 Operating revenues: Charges for services $ 2,512,384 $ 1,885,407 $ 4,397,791 $3,911,280 Miscellaneous 70,834 702834 35,012 TOTAL OPERATING REVENUES 2,583,218 1,885,407 4,468,625 3,946,292 Operating expenses: Operation of facilities 1,264,183 1,454,826 2,719,009 2,087,500 General and administrative 30,385 202,882 233,267 206,557 Depreciation 262,926 244,445 507,371 493,336 TOTAL OPERATING EXPENSES 1,557,494 1,902,153 3,459,647 2,787,393 OPERATING INCOME (LOSS) 1,025,724 (16,746) 1,008,978 1,158,899 Nonoperating revenues (expenses): Interest on investments 543,022 5,408 548,430 341,174 Interest on bonds (150,450) (150,450) (171,575) Amortization of bond discount (5,170) (5,170) (5,170) Fiscal agents' fees (713) (713) (4,539) Construction reimbursements 4,700 Other revenue (expense) 38,370 (31,404) 6,966 (4,927) 425,059 (25,996) 399,063 159,663 NET INCOME (LOSS) BEFORE OPERATING TRANSFERS 1,450,783 (42,742) 1,408,041 1,318,562 Operating transfers in 12,950 12,950 10,000 Operating transfers out (185,000) (185,000) (183,962) NET INCOME (LOSS) 1,265,783 (29,792) 1,235,991 1,144,600 r. Retained earnings (deficit) at May 1, 1988 10,781,151 (1,180,510) 9,6002641 8,456,041 RETAINED EARNINGS (DEFICIT) AT — APRIL 30, 1989 tl2,046,934 $(1_210.302) tUA36.632 9.600.641 See accompanying notes to financial statements. -67- VILLAGE OF OAK BROOK, ILLINOIS ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended April 30, 1989 Waterworks Sports Totals System Core 1989 1988 Sources of working capital: Operations: Net income (loss) $1,265,783 $ (29,792) $1,235,991 $1,144,600 Items not requiring working capital: Depreciation 262,926 244,445 507,371 493,336 Amortization of bond discount 5,170 5,170 5,170 t- TOTAL PROVIDED BY OPERATIONS 1,533,879 214,653 1,748,532 1,643,106 Decrease in restricted assets1,153,07-1-''-1 1,153,071 TOTAL SOURCES OF WORKING CAPITAL 2,686,950 214,653 2,901,603 1,643,106 Uses of working capital: Acquisition of fixed assets 697,987 504,911 1,202,898 534,351 Reduction in bonds payable 425,000 425,000 400,000 Increase in investment in Joint Venture 577,463 577,463 TOTAL USES OF _ WORKING CAPITAL 1,700,450 504,911 2,205,361 934,351 NET INCREASE (DECREASE) IN WORKING CAPITAL $ 986.500 2 2 ) $--696,242 $ 708.755 Elements of net increase (decrease) in working capital: Cash $ 110,104 $ 65,526 $ 175,630 $ (70,984) Investments 1,082,023(7flvh- (86,858) 995,165 812,513 Receivables 115,772 (11,365) 104,407 77,085 Other assets 2,499 2,499 Inventory 49,703 49,703 17,763 Accounts payable, (318,344) (340,246) (658,590) (151,512) Accrued payroll and vacation liability (3,055) (16,029) (19,084) 6,324 Customer deposits 679 679 2,865 Due to other funds 45,833 45,833 14,701 NET INCREASE (DECREASE) IN WORKING CAPITAL $ 986.5004Qy? $) $ 696.242 $ 708.755 See accompanying notes to financial statements. -68- VILLAGE OF OAK BROOK, ILLINOIS r WATERWORKS SYSTEM FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS (NON-GAAP BASIS)--BUDGET AND ACTUAL Year Ended April 30, 1989 Actual-- Actual-- Variance GAAP Budgetary Favorable Basis Adjustments Basis Budget (Unfavorable) Operating revenues: Charges for services: Water sales $ 2,204,707 $2,204,707 $ 2,110,000 $ 94,707 _ Unmetered water 4,163 4,163 7,400 (3,237) Water tap on charges 155,380 155,380 218,400 (63,020) Fire service charges 123,326 123,326 122,700 626 Special service charges 11,493 11,493 10,750 743 Water meter sales 13,315 13,315 14,500 (1,185) 2,512,384 2,512,384 2,483,750 28,634 Miscellaneous 70,834 70,834 36,600 34,234 TOTAL .� OPERATING REVENUES 2,583,218 2,583,218 2,520,350 _62,868 Operating expenses:. Operation of facilities: Source of _ supply: Personal services 11,322 11,322 9,821 (1,501) Contractual services 9,269 9,269 11,600 2,331 Fixed charges 1,572 1,572 1,331 (241) Commodities 1,435 1,435 4,500 3,065 23,598 23,598 27,252 3,654 Power and pumping: Personal services 14,261 ,E 14,261 19,243 4,982 Contractual -- services :553,282```" 553,282 630,200 76,918 Fixed charges _ 2,001 2,001 2,607 606 Commodities 3,264 3,264 3,235 (29) 572,808 572,808 655,285 82,477 Purification: Personal services 3,569 3,569 5,271 1,702 Contractual services 7,521 7,521 7,500 (21) r' Fixed charges 498 498 714 216 Commodities 20,719 20,719 16,950 (3,769) 32,307 32,307 30,435 (1,872) See accompanying notes to financial statements. -69- VILLAGE OF OAK BROOK, ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Actual-- Variance GAAP Budgetary Favorable Basis Adjustments Basis Budget (Unfavorable) Transmission and ... distribution: Personal services $ 138,727 $ 138,727 $ 103,822 $ (34,905) Contractual _ services '435,75 435,752 408,187 (27,565) Fixed charges 19,307 19,307 13,524 (5,783) Commodities 41,684 41,684 33,200 (8,484) Capital outlay - $ 697,987 697,987 1,277,567 579,580 635,470 697,987 1,333,457 1,836,300 502,843 TOTAL OPERATION OF FACILITIES 1,264,183 697,987 1,962,170 2,549,272 587,102 General and administrative 30,385 30,385 29,150 (1,235) Depreciation 262,926 (262,926) - - TOTAL OPERATING EXPENSES 1,557,494 435,061 1,992,555 2,578,422 585,867 OPERATING INCOME 1,025,724 (435,061) 590,663 (58,072) 648,735 Nonoperating revenues (expenditures): Interest on investments 543,022 543,022 360,000 183,022 Contribution to Joint Venture - (577,463) (577,463) (608,284) 30,821 Interest on bonds (150,450) (150,450) (150,450) - Payment of bonds - (425,000) (425,000) (425,000) - Amortization of bond discount (5,170) (5,170) (5,170) Fiscal agents' fees (713) (713) (2,700) 1,987 Miscellaneous 38,370 - 38,370 - 38,370 425,059 (1,002,463) (577,404) (826,434) (249,030) INCOME BEFORE OPERATING TRANSFERS 1,450,783 (1,437,524) 13,259 (884,506) 897,765 Operating transfers out (185,000) - (185,000) (185,000) - NET INCOME 1,265,783 (1.437.524)$ (171.741) (1.069.506) 1-897.765 Retained earnings at May 1, 1988 10,781,151 RETAINED EARNINGS AT APRIL 30, 1989 tl2,0LLj34 See accompanying notes to financial statements. -70- VILLAGE OF OAK BROOK, ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION Year Ended Arpil 30, 1989 Property, Plant and Equipment Additions Balance and Balance May 1, 1988 Transfers Apr.30, 1989 Waterworks property, plant and equipment: Land and land rights $ 2,819 $212,981 $ 215,800 Service of supply plant-- wells and springs 314,753 314,753 Structure and improvements 68,232 68,232 Electrical pumping equipment 340,565 4,777 345,342 _ Total water treatment equipment 8,149 8,149 Distribution, reservoirs, mains and standpipes 7,757,880 459,891 8,217,771 Meters and meter installation 454,970 13,417 468,387 Hydrants 180,104 180,104 Miscellaneous tools and equipment: Office furniture and equipment 12,795 12,795 Transportation equipment 25,241 6,921 32,162 Tools, shop, and garage equipment 2,852 2,852 Laboratory equipment 1,070 1,070 Miscellanous equipment 53,162 53,162 Intangible plant-- organization 11,403 11,403 9.233.995 J 2Z Q - $9.931.982 See accompanying notes to financial statements. r -71- Rate of Depreciation Allowances for Depreciation or Additions Net Asset Amortization Balance and Balance Value (Years) May 1, 1988 Transfers Apr.30, 1989 Apr.30, 1989 $ 215,800 40 $ 112,694 $ 7,870 $ 120,564 194,189 40 25,372 1,706 27,078 41,154 40 50,529 8,574 59,103 286,239 10 7,172 815 7,987 162 40 2,066,535 199,696 2,266,231 5,951,540 15 262,195 30,778 292,973 175,414 40 52,747 4,503 57,250 122,854 10 6,418 1,280 7,698 5,097 6 25,241 4,784 30,025 2,137 5 2,852 2,852 5 1,070 1,070 5 46,718 2,920 49,638 3,524 5 11,403 11,403 2.670.946 2 2 2 $2.933.872 $6.998.110 -71- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT (NON-GAAP BASIS)--BUDGET AND ACTUAL Year Ended April 30, 1989 r Actual-- Variance Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating revenues: Charges for services: r Memberships: Golf course $ 654,259 $ 654,259 $ 561,877 $ 92,382 Bath and tennis 303,709 303,709 352,200 (48,491) Open fields 94 94 1,000 (906) 958,062 958,062 915,077 42,985 Rentals: Golf course 279,899 279,899 183,745 96,154 Bath and tennis 1,210 1,210 3,250 (2,040) Open fields 61,325 61,325 47,900 13,425 342,434 342,434 234,895 107,539 Membership events 18,221 18,221 16,000 2,221 Food and beverage sales and service charges: Golf course 164,339 164,339 153,000 11,339 Bath and tennis 390,454 390,454 400,250 (9,796) Open fields 11,897 11,897 15,000 (3,103) 566,690 566,690 568,250 (1,560) '~ TOTAL OPERATING REVENUES 1,885,407 1,885,407 1,734,222 151,185 See accompanying notes to financial statements. -72- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Variance Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating expenses: Operation of facilities: Golf course: Personal services $ 150,034 $ 150,034 $ 132,530 $(17,504) Contractual services 359,292 359,292 322,965 (36,327) Fixed charges 83,072 83,072 89,836 6,764 Commodities 57,825 57,825 41,740 (16,085) Capital outlay 108,000 108,000 650,223 650,223 695,071 44,848 Bath and tennis: WNW Personal services 252,371 252,371 225,602 (26,769) Contractual services 107,902 107,902 100,190 (7,712) Fixed charges 43,600 43,600 39,571 (4,029) Commodities 169,374 169,374 145,900 (23,474) ,.. Capital outlay 123,000 123,000 573,247 573,247 634,263 61,016 Open fields: Personal services 500 500 Contractual services 19,865 19,865 26,550 6,685 Fixed charges 822 822 500 (322) Commodities 615 615 500 (115) 21,302 21,302 28,050 6,748 Food--golf course: Personal '~ services 22,158 22,158 23,000 842 Contractual services 411 411 300 (111) Fixed charges 1,664 1,664 1,644 (20) Commodities 57,961 57,961 50,890 (7,071) 82,194 82,194 75,834 (6,360) See accompanying notes to financial statements. -73- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Variance Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating expenses--Continued: Operation of facilities--Continued: Food--bath and tennis: Personal services $ 47,982 $ 47,982 $ 38,000 $ (9,982) Contractual services 5,355 5,355 4,400 (955) Fixed charges 5,262 5,262 3,350 (1,912) Commodities 24,891 24,891 30,000 5,109 Capital outlay 1,000 1,000 83,490 83,490 76,750 (6,740) _ Beverage--bath and tennis: Personal '- services 5,874 5,874 4,000 (1,874) Fixed charges 441 441 300 (141) Commodities 7,480 7,480 4,200 (3,280) 13,795 . 13,795 8,500 (5,295) Grill operations: r Personal services 14,869 14,869 9,000 (5,869) Contractual services 769 769 1,000 231 Fixed charges 1,116 1,116 675 (441) Commodities 13,821 13,821 12,950 (871) Capital outlay 1,000 1,000 .� 30,575 30,575 24,625 (5,950) TOTAL OPERATION OF FACILITIES 1,454,826 1,454,826 1,543,093 88,267 See accompanying notes to financial statements. - -74- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND �.. SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN DEFICIT (NON-GAAP BASIS)--BUDGET AND ACTUAL--Continued Year Ended April 30, 1989 Actual-- Variance Actual-- Budgetary Favorable GAAP Basis Adjustments Basis Budget (Unfavorable) Operating expenses--Continued: General and administrative: Personal services $ 105,348 $ 105,348 $ 96,445 $ (8,903) Contractual services 39,120 39,120 52,900 13,780 �- Fixed charges 41,235 41,235 30,303 (10,932) Commodities 17,179 17,179 6,150 (11,029) Capital outlay 3,500 3,500 202,882 202,882 189,298 (13,584) Depreciation 244,445 $(2442445) TOTAL OPERATING Vw EXPENSES 1,902,153 (244,445) 1,657,708 1,732,391 742683 OPERATING LOSS (16,746) 244,445 227,699 1,831 225,868 Nonoperating revenue (expense): Interest on investments 5,408 5,408 7,000 (1,592) Other expense (31,404) (31,404) (31,404) (25,996) (25,996) 7,000 (32,996) INCOME (LOSS) +- BEFORE OPERATING TRANSFERS (42,742) 244,445 201,703 8,831 192,872 Operating transfers in 12,950 12,950 10;000 2,950 NET INCOME (LOSS) (29,792) 244 44 $ 214.653 tl95,822 Deficit at May 1, 1988 (1,180,510) ,.. DEFICIT AT APRIL 30, 1989 (1.210.302) See accompanying notes to financial statements. -75- VILLAGE OF OAK BROOK, ILLINOIS SPORTS CORE FUND SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT AND ACCUMULATED DEPRECIATION Year Ended April 30, 1989 Property, Plant and Equipment Additions Balance and Balance May 1, 1988 Transfers Apr. 30, 1989 Sports Core maintenance equipment $ - $181,074 $ 181,074 Land and land rights 8,252,585 8,252,585 Golf course land improvements 1,203,338 1,203,338 Other land improvements 339,535 339,535 Clubhouse: Golf 309,415 255,175 564,590 Bath and tennis 391,498 40,376 431,874 Other improvements 470,946 2,960 473,906 Pools 113,394 7,815 121,209 Tennis courts 423,892 17,511 441,403 Clubhouse equipment 110,265 110,265 Golf equipment 60,806 60,806 Buildings 116,568 116,568 .. 111.792.242 W4,911 $12.297.153 See accompanying notes to financial statements. r. -76- R s` Rate of Depreciation Allowances for Depreciation or Additions Net Asset Amortization Balance and Balance Value (Years) May 1, 1988 Transfers Apr. 30, 1989 Apr. 30, 1989 $ 181,074 8,252,585 10 $ 905,933 $120,334 $1,026,267 177,071 20 146,065 16,977 163,042 176,493 40 55,014 10,925 65,939 498,651 40 93,598 10,292 103,890 327,984 10 248,915 47,242 296,157 177,749 20 49,744 5,865 55,609 65,600 15 160,295 28,843 189,138 252,265 ,.„ 5 106,378 1,053 107,431 2,834 5 60,806 60,806 40 10,125 2,914 13,039 103,529 1.836.873: $244,4La $2,081,318 tlO,211,M -76- VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS COMBINING BALANCE SHEET April 30, 1989 Policemen's Firefighter's Totals Pension Pension 1989 1988 ASSETS Cash $ 20,556 $ 17,880 $ 38,436 $ 45,792 Investments 6,946,184 7,177,329 14,123,513 12,831,404 Receivables: Accrued interest receivable 140,509 158,319 298,828 214,751 Other 9,567 8,076 17,643 22,096 Due from other funds 17,472 16,041 33,513 46,810 TOTAL ASSETS t7,377,645 $14.511.933 t13,160,853 LIABILITIES Accounts payable $ 11,461 $ 9,913 $ 21,374 $ 17,416 .� TOTAL LIABILITIES 11,461 9,913 21,374 17,416 FUND EQUITY Fund balances: Reserved for employees' retirement 7,353,693 6,735,173 14,088,866 12,454,600 Unreserved, undesignated (230,866) 632,559 401,693 688,837 TOTAL FUND EQUITY 7,122,827 7,367,732 14,490,559 13,143,437 TOTAL LIABILITIES AND FUND EQUITY 7.134.288 $7.377.645 $14.511.933 tl3,160,853 See accompanying notes to financial statements. -77- VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES Year Ended April 30, 1989 Policemen's Firefighter's Totals Pension Pension 1989 1988 Operating revenues: Interest on investments $ 506,724 $ 459,707 $ 966,431 $ 927,667 Contributions: Employees 114,088 98,367 212,455 208,019 Village 212,268 201,205 413,473 385,054 Other 152 152 100 326,508 299,572 626,080 593,173 TOTAL OPERATING REVENUES 833,232 759,279 1,592,511 1,520,840 Operating expenses: General and _ administrative 4,645 1,102 5,747 3,355 Benefit payments 114,024 125,618 239,642 226,044 TOTAL OPERATING EXPENSES 118,669 126,720 245,389 229,399 NET INCOME 714,563 632,559 1,347,122 1,291,441 Fund balances at May 1, 1988 6,408,264 6,735,173 13,143,437 11,851,996 FUND BALANCES AT APRIL 30, 1989 t7,367,732 tl4,490,552 $13.143.437 See accompanying notes to financial statements... r. -78- VW VILLAGE OF OAK BROOK, ILLINOIS PENSION TRUST FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended April 30, 1989 Policemen's Firefighter's Totals Pension Pension 1989 1988 Sources of working —. capital--operations-- net income $714,563 $632,559 $1,347,122 $1,291,441 Uses of working capital--net increase pension investments 678,644 613,465 1,292,,109 1,282,542 NET INCREASE (DECREASE) IN WORKING CAPITAL 9Q $ 55.013 $ 8. 99 Elements of net increase (decrease) in working capital: Cash $ (1,763) $ (5,593) $ (7,356) $ 26,229 Receivables 48,075 31,549 79,624 3,734 Due from other funds (6,502) (6,795) (13,297) (19,011) Accounts payable (3,891) (67) (3,958) (2,053) NET INCREASE (DECREASE) IN WORKING CAPITAL $ 55,Q13 $ 8 899 See accompanying notes to financial statements. -79- VILLAGE OF OAK BROOK, ILLINOIS POLICEMEN'S PENSION FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE--BUDGET AND ACTUAL Year Ended April 30, 1989 Variance Actual-- Favorable GAAP Basis Budget (Unfavorable) i Operating revenues: Interest on investments $ 506,724 $450,00, $56,724 Contrihutions: Employees 114,088 120,000 (5,912) Village 212,268 222,000 (9,732) Other 152 - 152 326,508 342,000 (15,492) � TOTAL OPERATING REVENUES 833,232 792,000 41,232 Operating expenses: General and administrative 4,645 2,675 (1,970) Benefit payments 114,024 120,000 5,976 TOTAL OPERATING EXPENSES 118,669 122,675 4,006 NET INCOME 714,563 Fund balance at May 1, 1988 6,408,264 FUND BALANCE AT APRIL 30, 1989 7.122.827 See accompanying notes to financial statements. -80- VILLAGE OF OAK BROOK, ILLINOIS FIREFIGHTER'S PENSION FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE--BUDGET AND ACTUAL Year Ended April 30, 1989 Variance Actual-- Favorable GAAP Basis Budget (Unfavorable) Operating revenues: Interest on investments $ 459,707 $460,000 $ (293) Contributions: Employees 98,367 103,000 (4,633) Village 201,205 215,000 (13,795) 299,572 318,000 (18,428) -- TOTAL OPERATING REVENUES 759,279 778,000 (18,721) Operating expenses: General and administrative 1,102 1,975 873 Benefit payments 125,618 125,000 (618) TOTAL OPERATING EXPENSES 126,720 126,975 255 NET INCOME 632,559 ) Fund balance at May 1, 1988 6,735,173 FUND BALANCE AT APRIL 30, 1989 $7.367.732 See accompanying notes to financial statements. -81- � ' � t ► � ► ► ► ► r ► � I ► 1 t t VILLAGE OF OAK BROOK, ILLINOIS GENERAL FIXED ASSETS ACCOUNT GROUP ,.. SCHEDULE OF GENERAL FIXED ASSETS--BY SOURCE April 30, 1989 and 1988 1989 1988 -- General fixed assets: Land $ 281,829 $ 281,829 Buildings and improvements 4,941,791 4,889,375 Furniture and fixtures 274,367 271,619 Roadway improvements 6,093,009 5,131,879 Automotive equipment 1,839,480 1,293,050 Other equipment 1,599,980 1,416,510 Library books 364,483 333,899 TOTAL GENERAL FIXED ASSETS t15,394.939 113.618.161 Investment in general fixed assets from: Current revenues $12,885,040 $11,108,262 Proceeds of indebtedness 1,582,783 1,582,783 Gifts 518,738 518,738 Motor Fuel Tax Fund revenues 246,098 246,098 Federal Revenue Sharing Fund revenues 131,751 131,751 Special Service Area No. 1 Fund revenues 30,529 30,529 TOTAL INVESTMENT IN GENERAL FIXED ASSETS t15,394.939 $13.618.161 See accompanying notes to financial statements. -82- VILLAGE OF OAK BROOK, ILLINOIS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS--BY FUNCTION AND ACTIVITY April 30, 1989 Buildings Furniture and and Function and Activity Land Improvements Fixtures General government: Counsel and legal $ 3,067 Village manager 5,831 Finance and accounting 15,484 Engineering $ 6,580 16,274 Village Hall 273,741 $2,729,384 118,338 i TOTAL GENERAL GOVERNMENT 280,321 2,729,384 158,994 Public safety: Police Department 27,667 25,208 Fire Department 1,210,748 39,862 Emergency medical service 813 Inspection bureau 3,171 TOTAL PUBLIC SAFETY 1,238,415 69,054 Public works: r Administrative 5,461 Street maintenance Street improvements 30,363 Municipal garage 763,695 5,386 TOTAL PUBLIC WORKS 794,058 10,847 Culture and recreation--Library 1,508 179,934 35,472 TOTAL GENERAL FIXED ASSETS lkaAL741 See accompanying notes to financial statements. r r s -83- Roadway Automotive Other Library Improvements Equipment Equipment Books Total $ 15,023 $ 18,090 $ 16,367 27,625 49,823 135,951 151,435 10,857 57,335 91,046 9,929 49,389 3,180,781 37,153 285,323 3,491,175 395,401 295,067 743,343 $ 52,813 742,005 580,529 2,625,957 154,640 101,643 257,096 17,396 26,548 47,115 52,813 1,309,442 1,003,787 3,673,511 41,941 5,568 52,970 ~' 450,943 185,870 636,813 6,040,196 54,647 6,125,206 40,125 809,206 6,040,196 492,884 286,210 7,624,195 24,661 $364,483 606,058 6.093.009 1.839.479 tl,599,981 t364,483 $15.394.939 ,s. -83- i VILLAGE OF OAK BROOK, ILLINOIS GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-- BY FUNCTION AND ACTIVITY April 30, 1989 General General Fixed Fixed Assets Assets May 1 April 30 Function and Activity 1988 Additions Retirements 1989 General government: Counsel and legal $ 16,921 $ 1,169 $ 18,090 Village manager 48,542 1,281 49,823 Finance and accounting 124,402 27,033 151,435 Engineering 89,806 1,240 91,046 Village Hall 3,142,983 37,798 3,180,781 TOTAL GENERAL GOVERNMENT 3,422,654 68,521 3,491,175 Public safety: Police Department 693,100 50,243 743,343 Fire Department 2,098,558 527,399 2,625,957 Emergency medical service 247,489 9,607 257,096 Inspection bureau 46,099 11016 47,115 TOTAL PUBLIC SAFETY 3,085,246 588,265 3,673,511 Public works: Administrative 52,970 52,970 i Street maintenance 564,690 112,123 $40,000 636,813 Street improvements 5,117,555 1,007,651 6,125,206 Municipal garage 808,115 1,091 809,206 TOTAL PUBLIC WORKS 6,543,330 1,120,865 40,000 7,624,195 Culture and recreation-- Library 566,931 39,127 606,058 TOTAL GENERAL FIXED ASSETS 13.618.161 1.816.778t40,OOQ $15.394.939 See accompanying notes to financial statements. -84- i Table 1 VILLAGE OF OAK BROOK, ILLINOIS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Fiscal Years Culture Health Fiscal General Public Public and Debt and Total Year Legislative Government Safety Works Recreation Service Welfare Expenditures 1989 $327,739 $1,124,734 $5,184,506 $2,076,858 $196,584 $955,025 $ - $9,865,446 1988 311,918 895,764 4,616,312 2,089,485 195,341 987,234 - 9,096,054 1987 254,617 911,668 4,450,380 1,384,901 181,778 916,214 - 8,099,558 C 1986 256,953 724,353 4,047,863 1,051,920 177,265 942,064 - 7,200,418 1985 222,469 726,444 4,032,499 1,378,771 136,526 967,861 - 7,464,570 1984 218,095 999,325 3,460,935 1,229,691 149,736 891,320 - 6,949,102 1983 193,109 878,409 3,396,808 812,987 113,037 912,849 - 6,307,199 1982 650,781 960,601 3,208,328 1,170,176 105,712 884,488 - 6,980,086 1981 126,202 779,972 2,944,083 989,810 131,876 884,485 - 5,856,428 1980 - 824,226 2,538,696 598,430 105,186 854,650 16,595 4,937,783 Note 1--Includes expenditures of General Fund, Special Revenue Fund, Debt Service Fund, and Capital Projects Fund. Table 2 VILLAGE OF OAK BROOK, ILLINOIS GENERAL REVENUES BY SOURCE (1) Last Ten Fiscal Years Licenses Fines Interest Fiscal Property and Service and on Year Intergovernmental Taxes Permits Charges Penalties Investment Miscellaneous Total 1989 $7,151,393 $582,861 $261,081 $263,759 $166,238 $418,479 $234,158 $9,077,969 1988 6,695,200 627,708 295,364 204,889 189,558 421,013 185,943 8,619,675 1987 6,885,727 598,342 279,693 215,853 146,691 404,114 339,036 8,869,456 1986 5,952,519 570,623 248,343 218,107 162,648 427,195 190,378 7,769,813 1985 5,949,838 691,686 287,217 212,816 204,809 453,655 56,389 7,856,410 1984 5,343,246 602,517 326,633 214,758 205,838 387,418 52,928 7,133,338 1983 4,955,919 352,932 212,984 159,897 139,872 472,537 13,314 6,307,455 1982 4,894,684 518,701 238,017 309,682 155,465 619,703 99,191 6,835,443 1981 4,644,790 673,830 195,474 131,836 109,239 523,492 45,927 6,324,588 1980 4,987,942 444,767 192,044 148,497 88,678 395,543 400,565 6,658,036 Note 1--Includes revenues of General Fund, Special Revenue Funds, Debt Service Fund, and Capital Projects Fund. Table 3 VILLAGE OF OAK BROOK, ILLINOIS SPECIAL ASSESSMENT COLLECTIONS (1) Last Five Fiscal Years Ratio of Current Current Collections Total " Fiscal Assessments Assessments of Amount Outstanding Year Due Collected Due Assessments 1987 $6,000 $6,063 101.05% $ 5,615 1986 6,000 6,137 102.28 11,615 1985 6,000 6,071 101.18 17,615 1984 6,000 6,061 101.02 23,615 1983 6,000 6,066 101.10 29,615 Note 1--Special assessments are levied by the Village on properties in the York Woods subdivision of the Village for street light improve- ments. There were no special assessments. prior to 1983 or subsequent to 1987. -87- Table 4 VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (1) Total Tax Current Collections Outstanding Year and Delinquent Fiscal Abatement Total Tax Write-Offs Taxes as Year Percent Delinquent and Collections as Percent Outstanding Percent of Tax Ended Total Current Tax of Levy Tax Forfeiture and of Current Delinquent Current Year April 30 Tax Levy Collections Collected Collections Write-Offs Write-Offs Levy Taxes Levy 1987(4) 1989 $580,309 $576,597 99.36% $6,026 $2,997 $585,620 100.92% $ 714 .12% 1986(2)(4) 1988 608,701 598,279 98.30 3,053 1,254 602,586 99.00 1,052 .17 1985(2)(4) 1987 621,310 618,592 99.56 1,069 1,880 621,541 100.04 838 .13 1984(2) 1986 568,597 562,842 98.99 3,473 4,924 571,239 100.46 831 .15 1 1983(2) 1985 591,472 582,336 98.46 4,785 8,431 595,552 100.69 705 .12 00 1 1982(2) 1984 523,892 519,179 99.10 3,067 1,375 523,621 99.95 271 .05 1981(3) 1983 277,439 273,157 98.46 1,609 4,800 279,566 100.77 - - 1980(2) 1982 518,030 514,912 99.40 3,789 2,967 521,668 100.70 - - 1979(2) 1981 483,900 479,949 99.18 16 1,409 481,374 99.48 2,526 .52 1978 1980 748,498 729,257 97.43 1,132 7,279 737,668 98.55 10,830 1.45 Note 1--Prior to the 1981 tax levy, the Village levied property taxes for debt service purposes only and commenced such levies for the 1977 tax year. Taxes are collected during the summer months of the year following the year of the levy. Thus, collec- tions are made in the fiscal year two years behind the year of the levy. Note 2--The 1979, 1980, 1982, 1983, 1984 and 1985 levies were abated by $300,000. These funds were contributed from excess revenues of the General Fund. Note 3--The 1981 levy was abated by $600,000. These funds were contributed from excess revenues of the General Fund. Note 4--The 1986, 1987 and 1988 levies were abated by $300,000 paid by the General Fund. i r r r r ► ► ► � ► ► r r r ► r ► r — Table 5 VILLAGE OF OAK BROOK, ILLINOIS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1) Last Ten Fiscal Years Ratio of Total Assessed/ Real Property Total Estimated Estimated Fiscal Actual Actual Year Assessed Value Value — 1989 $669,030 $2,027,364 33.00% — 1988 611,665 1,853,530 33.00 1987 445,776 1,350,836 33.00 1986 396,911 1,202,761 33.00 1985 373,266 1,131,109 33.00 — 1984 347,271 1,052,336 33.00 1983 318,675 965,680 33.00 — 1982 293,897 890,597 33.00 1981 257,727 780,990 33.00 1980 213,643 647,403 33.00 — Note 1--Dollar amounts in thousands. — -89- Table 6 VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX RATES--ALL OVERLAPPING GOVERNMENTS (Per $100 Assessed Valuation) Last Ten Fiscal Years Village Junior Grade High Oak Brook Hinsdale Fiscal of Basic College School School Park Sanitary Year Total Oak Brook Town(1) #502 453 #86 District District a 1989 4.4159 .0825 1.1111 .2088 .9093 1.8774 .1834 .0434 1988 4.3540 .0949 1.0587 .2341 .9364 1.8906 .1014 .0379 1987 4.6970 .1366 .9572 .2551 1.2297 1.9233 .1423 .0528 1986 5.1729 .1566 1.2444 .2450 1.3314 1.9461 .1918 .0576 1985 4.8476 .1524 1.0265 .2424 1.2050 1.9570 .2035 .0608 1984 4.6286 .1704 .9162 .2426 1.1507 1.9201 .1663 .0623 1983 4.9090 .1645 .9452 .2318 1.4383 1.8883 .1763 .0646 1982 4.6863 .0944 .9425 .2222 1.3649 1.8334 .1598 .0691 1981 5.1113 .2010 1.0036 .1904 1.5661 1.9150 .1558 .0794 1980 5.8149 .2265 1.0629 .2070 2.2248 1.8620 .1341 .0976 Note 1--Includes all county, forest preserve, township and water commission rates. Source: Du Page County Clerk's office, Revenue Division. -90- Table 7 VILLAGE OF OAK BROOK, ILLINOIS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years Ratio of Net Net Assessed Debt Bonded Bonded Value Gross Service Net Debt to Debt Fiscal (in Bonded Monies Bonded Assessed Per Year Population Thousands) Debt(1) Available Debt Value Capita 1989 9,151(6) $669,030 $ 4,950,000 $629,291 $ 4,320,709 .646% $ 472 1988 8,000(2) 611,665 5,650,000 510,389 5,139,611 .840 642 1987 8,000(2) 445,776 6,350,000 416,669 5,933,331 1.331 742 1986 8,000(2) 396,911 6,950,000 287,636 6,662,364 1.679 833 1985 7,263(3) 373,266 7,550,000 224,642 7,325,358 1.963 1,009 1984 7,263(3) 347,271 8,150,000 161,147 7,988,853 2.301 1,100 1983 6,641(4) 318,675 8,670,105 120,337 8,549,768 2.683 1,287 1982 6,641(4) 293,897 9,441,158 163,155 9,278,003 3.157 1,397 1981 6,641(4) 257,727 10,078,228 178,051 9,900,177 3.841 1,491 1980 5,281(5) 213,643 10,721,000 (221,744) 10,942,744 5.122 2,072 Note 1--Includes total gross bonded debt, including all components of the general long-term debt account group, with the exception of accrued �. vacation pay. Note 2--July 1986 annexation of the Oak Brook Club increased population to approximately 8,000. Note 3--1983 special census. Note 4--1980 census. Note 5--1975 census. Note 6--1988 special census. -91- Table 8 _ VILLAGE OF OAK BROOK, ILLINOIS COMPUTATION OF LEGAL DEBT MARGIN April 30, 1989 Assessed value $669.029.538 Debt limit 8.625% of assessed value $ 57,703,798 Debt applicable to debt limit--General Obligation Recreation Bonds 4,950,000 LEGAL DEBT MARGIN 52.753.798 i -92- Table 9 VILLAGE OF OAK BROOK, ILLINOIS COMPUTATION OF DIRECT AND OVERLAPPING DEBT April 30, 1989 — Percentage Amount Applicable to Applicable to Gross Debt Village of Village of Jurisdiction Outstanding Oak Brook Oak Brook Village of Oak Brook $ 4,950,000 100.00% $ 4,950,000 Du Page County 10,260,000 5.49 563,274 Du Page Forest Preserve 60,720,000 5.49 3,333,528 Du Page Water Commission 150,000,000 5.70 8,550,000 Sanitary districts 1,760,000 24.79 436,304 Junior college district 5,104,000 5.12 261,325 Elementary school districts 7,844,000 11.53 904,413 High school districts 19,277,000 10.00 1,927,700 TOTAL 20.926.544 — Source: Du Page County Clerk's office. r.. — -93- Table 10 VILLAGE OF OAK BROOK, ILLINOIS RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Ratio of Total Debt Service Fiscal Debt Total General to Total Year Principal Interest Service Expenditures(1) Expenditures 1989 $700,000 $270,200 $ 970,200 $9,865,446 9.84% 1988 700,000 302,400 1,002,400 9,096,054 11.02 1987 600,000 328,200 928,200 8,099,558 11.46 1986 600,000 354,000 954,000 7,200,418 13.25 1985 600,000 379,800 979,800 7,464,570 13.13 1984 500,000 390,550 890,550 6,949,102 12.81 1983 500,000 412,050 912,050 6,307,199 14.46 1982 450,000 433,825 883,825 6,980,086 12.66 1981 400,000 454,650 854,650 5,856,428 14.59 1980(2) 270,000 477,410 747,410 4,937,783 15.14 Note 1--Includes General Fund, Special Revenue Fund, Debt Service Fund and Capital Projects Fund. Note 2--Bonds were issued on September 1, 1977 with the first principal payment due December 1, 1979. -94- Table 11 VILLAGE OF OAK BROOK, ILLINOIS REVENUE BOND COVERAGE--WATERWORKS SYSTEM BONDS Last Ten Fiscal Years Net Revenue Available Fiscal Gross for Debt Debt Service Requirements Year Revenue(1) Expenses(2) Service(3) Principal Interest Total Coverage 1989 $3,126,240 $1,294,568 $1,831,672 $425,000 $150,450 $575,450 318% 1988 2,778,938 810,900 1,968,038 400,000 171,575 571,575 344 1987 2,574,660 906,055 1,668,605 375,000 191,450 566,450 295 1986 2,581,462 801,823 1,779,639 350,000 209,950 559,950 318 1985 2,621,901 819,550 1,802,351 350,000 228,600 578,600 312 1984 2,248,398 712,692 1,535,706 325,000 246,100 571,100 269 1983 2,002,585 540,260 1,462,325 300,000 261,525 561,525 260 1982 1,814,363 436,134 1,378,229 275,000 275,550 550,550 250 1981 1,665,697 510,744 1,154,953 250,000 289,425 539,425 214 1980 1,557,714 374,346 1,183,368 225,000 300,925 525,925 225 Note 1--Represents gross revenue, including operating revenue, interest on investments, reimbursements and other revenue. Note 2--Represents operating expenses, excluding depreciation. Note 3--Represents gross revenue less expenses. -95- Table 12 VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC STATISTICS Education Level in Per Years of Fiscal Capita Median Formal Unemployment Year Population Income Age Education Rate 1984(1) 7,263 $22,737 39 14.5 3.14% 1970(2) 4,164 8,997 34 13.3 .07 Source 1--1983 Special Census and 1980 Federal Census. Source 2--1970 Federal Census. -96- Table 13 VILLAGE OF OAK BROOK, ILLINOIS PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS — Last Ten Calendar Years Commercial Residential Estimated Construction Construction Total Number Number Property Calendar of Value (in of Value (in Bank Deposits Value (in ._ Year Units Thousands) Units Thousands) (in Thousands) Thousands) 1988 2 $ 8,399 47 $39,548 $1,315,428,000 $1,823,100 1987 1 35,000 100 36,462 1,171,352,000 1,573,724 1986 4 52,985 113 34,263 1,041,202,000 1,350,836 1985 1 1,975 124 28,453 929,645,000 1,202,761 1984 3 15,349 105 25,861 841,308,000 1,131,109 1983 5 15,575 98 22,398 754,645,000 1,052,336 1982 2 11,943 55 6,937 657,982,000 965,680 1981 1 798 63 14,618 508,321,000 890,597 1980 6 14,554 81 19,446 433,987,000 780,990 1979 6 18,167 119 17,487 647,403 Source--Polling of all banks in Village of Oak Brook. Data for years prior to 1980 was not available. -97- Table 14 VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL TAXPAYERS April 30, 1989 Percentage of 1988 Total Assessed Assessed Taxpayer Type of Business Valuation Valuation Urban Investment and Oak Brook Shopping Development Co. Center property $ 23,140,605 3.5% McDonald's Corporation Office Campus 22,178,939 3.3 Oak Brook International Office Office buildings 13,248,770 2.0 La Salle Partners Commerce Plaza 12,832,462 1.9 McDonald's Corporation Corporate office _ headquarters 12,136,823 1.8 Regency Towers Office buildings 11,098,733 1.7 Drake Hotel and offices 10,779,612 1.6 Marshall Field & Co.-Batus Holdings Retail store 7,454,842 1.1 Manufactures Life Real Estate Executive towers 6,822,306 1.0 Oak Brook Hyatt House Hotel 6,789,089 1.0 Eastman Kodak Regional headquarters 6,179,478 .9 Marriott Hotel 5,938,940 .9 John Buck Co. Office building 5,694,141 .9 Chicago Bridge and Iron Corporate office 5,507,835 .8 Sears, Roebuck & Co. Retail store 4,160,319 .6 $153.962.894 23.0% -98- Table 15 VILLAGE OF OAK BROOK, ILLINOIS INSURANCE IN EFFECT Fiscal Year 1988-1989 Name of Company Policy Period Amount of Type of Insurance (Policy Number) From To Coverage Premium Treasurer's bond Kemper Group 4-13-89 4-13-90 $ 100,000 $ 123 Insurance Company (35M-061-900-03) Volunteer accident Home Insurance 5-15-89 5-15-90 20,000 1,155 insurance Company (HVF-7-25-85) Host Liquor Continental 11-24-88 11-24-89 1,000,000 2,707 Liability Casualty (RDD7176568) Lloyds, London (BL25507CA) Note--The Village entered into a contractual agreement with 14 other municipali- ties to form the Intergovernmental Risk Management Agency (IRMA), which through its risk-sharing provisions provides the Village with its insurance coverage for liability, property damage, workmen's compensation, and surety risks not covered by the Village's Treasurer's Bond. The Village's contribution to this cooperative agency for 1989 was $206,209 and was determined by the pro rata share for each municipality's audited revenues and loss experience for the previous year, to be sufficient annually to fund administrative expenses and create sufficient reserves for claim payments and the purchase of excess insurance. The Agency provides loss protection in excess of a deductible of $1,000 per occurrence to be paid by each municipality. The Agency is required to pay up to $250,000 per occurrence for loss or injury within the scope of its _. self-insurance coverage. The Agency has also purchased excess catastrophe insurance over the amount of its $250,000 obligation and aggregate stop loss insurance. The amount of excess insurance is $33,250,000 per occurrence for liability claims and $29,750,000 for property claims. The Agency has contracted the services of Gallagher Bassett Insurance Service for the claims administration function. As of April 30, 1989, IRMA members totaled 44 municipalities. -99- Table 16 VILLAGE OF OAK BROOK, ILLINOIS MISCELLANEOUS STATISTICAL DATA April 30, 1989 Date of incorporation February 21, 1958 Form of government Seven member Board of Trustees, -r including President; Village Manager appointed by Board of Trustees Area 8.5 square miles — Miles of streets 53 miles Number of street lights 445 Fire protection: Number of stations 2 Number of firemen 34 Number of volunteers 20 Police protection: Number of stations 1 Number of policemen _ and officers 35 Detention facilities Juvenile 2 Adult 6 Education (elementary only): Attendance centers 2 Number of teachers 45 Number of students 490 Municipal water department: Number of customers 5,026 Total water pumped Gallons 1,386,130 Average daily consumption Gallons 3,797,000 Miles of water mains 77 Building permits issued Recreation: Oak Brook Sports Core-- 269 acres including Bath and Tennis Club and 18-hole golf course Oak Brook Park District- 66 acres including indoor and outdoor tennis Du Page County Forest Preserve--141 acres Culture: Number of libraries 1 Number of volumes 37,076 Census data 1960, 324; 1970, 4,164; 1975, 5,281; 1980, 6,641; 1984, 7,263 _ Employees: 120 full time 248 part time/seasonal -100- 1