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CAFR (Year Ended December 31, 2004) - to tQ OF OA /r P t O - v� ,,. O 10 v �} C/) COUN1* ' VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2004 VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31, 2004 Prepared by the Finance Department Darrell J. Langlois Finance Director/Treasurer —' VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS Page(s) INTRODUCTORY SECTION PrincipalOfficials............................................................................................................. i OrganizationChart............................................................................................................ ii Certificate of Achievement for Excellence in Financial Reporting.................................................................................. iii Letter of Transmittal from the Finance Director/Treasurer............................................... iv-x '— FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT........................................................................ 1-2 GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS Management's Discussion and Analysis...................................................................... 3-16 — Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets...................................................................................... 17 — Statement of Activities ....................................................................................... 18-19 Fund Financial Statements Governmental Funds Balance Sheet20 ................................................................................................ Reconciliation of Fund Balances of Governmental Funds to the — Governmental Activities in the Statement of Net Assets............................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances......... 22 Reconciliation of the Governmental Funds Statement of Revenues, — Expenditures and Changes in Fund Balances to the Governmental Activities in the Statement of Activities...................................................... 23 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) — FINANCIAL SECTION (Continued) GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued) Basic Financial Statements (Continued) — Fund Financial Statements (Continued) Proprietary Funds Statementof Net Assets................................................................................. 24 _ Statement of Revenues, Expenses and Changes in Net Assets ..................... 25 Statement of Cash Flows............................................................................... 26-27 Fiduciary Funds Statement of Fiduciary Net Assets ................................................................ 28 Statement of Changes in Fiduciary Net Assets.............................................. 29 Notes to Financial Statements................................................................................. 30-54 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balance - ` Budget and Actual - General Fund............................................................................. 55 Notes to Required Supplementary Information............................................................ 56 Schedule of Funding Progress ` Illinois Municipal Retirement Fund ........................................................................ 57 PolicePension Fund................................................................................................ 58 Firefighters' Pension Fund...................................................................................... 59 Schedule of Employer Contributions ' Illinois Municipal Retirement Fund........................................................................ 60 PolicePension Fund................................................................................................ 61 — Firefighters' Pension Fund...................................................................................... 62 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES — MAJOR GOVERNMENTAL FUNDS Schedule of Revenues - Budget and Actual - General Fund................................... 63 Schedule of Expenditures - Budget and Actual - General Fund.............................. 64-70 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -Infrastructure Fund............................................................ 71 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Pae s FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) NONMAJOR GOVERNMENTAL FUNDS CombiningBalance Sheet....................................................................................... 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances..................................................................................... 73 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Hotel/Motel Tax Fund........................................................................................ 74 MotorFuel Tax Fund.......................................................................................... 75 Foreign Fire Insurance Fund............................................................................... 76 PROPRIETARY FUNDS MAJOR ENTERPRISE FUNDS Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual - Waterworks System Fund................................................ 77 Schedule of Operating Expenses - Budget and Actual - WaterworksSystem Fund................................................................................. 78 Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual - Sports Core Fund............................................................. 79 Schedule of Operating Revenues - Budget and Actual - SportsCore Fund.............................................................................................. 80 — Schedule of Operating Expenses - Budget and Actual - SportsCore Fund.............................................................................................. 81-82 INTERNAL SERVICE FUNDS Combining Statement of Net Assets................................................................... 83 Combining Statement of Revenues, Expenses and Changes in Net Assets...................................................................................... 84 _ Combining Statement of Cash Flows................................................................. 85-86 Schedule of Revenues, Expenses and Changes in Net Assets - Budget and Actual _ Self-Insurance Fund....................................................................................... 87 GarageFund .................................................................................................. 88 Capital Replacement Fund ............................................................................ 89 VILLAGE OF OAK BROOK, ILLINOIS TABLE OF CONTENTS (Continued) Page(s) — FINANCIAL SECTION (Continued) COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) FIDUCIARY FUNDS PENSION TRUST FUNDS Combining Statement of Plan Net Assets........................................................... 90 Combining Statement of Changes in Plan Net Assets........................................ 91 — Schedule of Changes in Plan Net Assets - Budget and Actual PolicePension Fund...................................................................................... 92 Firefighters' Pension Fund............................................................................ 93 — LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS Schedule of General Long-Term Debt......................................................................... 94 STATISTICAL SECTION Government-Wide Information Government-Wide Revenues ....................................................................................... 95 — Government-Wide Expenses by Function.................................................................... 96 Fund Information — General Governmental Revenues by Source - LastTen Fiscal Years................................................................................................. 97 — General Governmental Expenditures by Function- LastTen Fiscal Years................................................................................................. 98 Property Tax Levies and Collections - — LastTen Fiscal Years................................................................................................. 99 Assessed and Estimated Actual Value of Taxable Property - LastTen Levy Years................................................................................................... 100 — Property Tax Rates -Direct and Overlapping Governments - LastTen Levy Years................................................................................................... 101 Schedule of Direct and Overlapping Bonded Debt...................................................... 102 Schedule of Bond Coverage - Waterworks System Bonds - LastTen Fiscal Years................................................................................................. 103 DemographicStatistics................................................................................................. 104 — Property Value and Construction - LastTen Fiscal Years................................................................................................. 105 Principal Taxpayers...................................................................................................... 106 Schedule of Insurance in Force.................................................................................... 107 Miscellaneous Statistics............................................................................................... 108-109 INTRODUCTORY SECTION VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2004 Kevin Quinlan, Village President Linda K. Gonnella, Village Clerk BOARD OF TRUSTEES Stelios Aktipis Susan Chase Korin George T. Caleel Elaine Zannis John W. Craig Asif Yusif VILLAGE MANAGER Richard B. Boehm, Village Manager FINANCE DEPARTMENT Darrell J. Langlois, Finance Director/Treasurer - i - Certificate of Achievement - for Excellence in Financial Reporting Presented to Village of Oak Brook, Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2003 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(CAFRs)achieve the highest standards in government accounting and financial reporting. �1LE OFy� !7�'• � _.! AWSfA7R'i a. (� `""W.A ' President SFAL CORPORkTDN f`� S cx�cw� Executive Director L G� p F 0,4 � o O - y 9c�CouNTr March 16, 2005 Village of President and Board of Trustees ,,,)ak Brook Village of Oak Brook 1200 Oak Brook Road Oak Brook, Illinois 60523 (_l< k Brook,IL 60523-2255 Website www.oak-brook.org The Comprehensive Annual Financial Report (CAFR) of the Village of Oak LAdministration Brook for the year ended December 31, 2004 is submitted herewith. 630.99090.00 Responsibility for both the accuracy of the information resented and the FAX 630.990.0876 p Y Y p thoroughness and fairness of the presentation, including all disclosures, rests with Community the Village. I believe the data, as presented, is accurate in all material respects; Development that it is presented in a manner designed to fairly set forth the financial position 630.990.3045 FAX 630.990.3985 and results of operations of the Village as measured by the financial activity of its I various funds and activities; and that all disclosures necessary to enable the reader `„ Engineering to gain the maximum understanding of the Village's financial affairs have been Department included. -- 630.990.3010 FAX 630.990.3985 The Comprehensive Annual Financial Report has been prepared and presented in Fire Department conformance with generally accepted accounting principles, including all 630.990.3040 FAX 630 990.23 requirements of GASB Statement No. 34 Basic Financial Statements - and FAX 630.990.2392 q �- Management Discussion and Analysis — for State and Local Governments. Police Department Statement No. 34 significantly changed the required format of government 630.990.2358 financial statements in a number of ways. The most significant of these changes FAX 630.990.7484 was to require that governments prepare entity-wide statements in addition to the Public Works fund-based financial statements traditionally prepared. Also, as part of the entity- Department wide statements, the Village is required to capitalize and depreciate its fixed 630.990.3044 assets, including infrastructure. The entity-wide financial statements attempt to FAX 630.472.0223 present the Village's financial position and results of operation in a manner similar to the business sector. More information on this new reporting model is Oak Brook Public Library providedManagement's Discussion anY in the Mement' d Analysis, which is located in the _. Financial Section of this report. 4 600 Oak Brook Road k Brook,IL 60523-2200 The Comprehensive Annual Financial Report is presented in three sections: 630.990.2222 introductory, financial and statistical. The introductory section, which is FAX 630.990.4509 unaudited, includes this transmittal letter, the Village's organizational chart and a Oak Brook Sports Core list of principal officials as of the end of the reporting period. The financial section includes the auditor's report, management's discussion and analysis Bath&Tennis Club (MD&A), the basic financial statements, combining and individual fund `700 Oak Brook Road statements and schedules, and required supplementary information. The Oak Brook,IL 60523-4600 630.9990.3020 statistical section, which is unaudited, includes financial and demographic LFAX 630.990.1002 information, which is generally presented on a multi-year basis. Golf Club L2606 York Road k Brook,IL 60523-4602 630.990.3032 FAX 630.990.0245 L 1V This Report includes all funds and activities of the Village. Generally accepted accounting principles require that the financial reporting entity include (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Based upon these criteria, there are no agencies or entities whose financial data should be combined with and included in the basic financial statements of the Village. Economic Condition and Outlook The Village of Oak Brook is located approximately 15 miles west of the Chicago Loop, near the geographic center of the seven-county Chicago metropolitan area. Excellent transportation links are provided to all parts of the greater metropolitan area by a network of tollways and federal and state highways which pass through or near the Village. The Tri-State Tollway (I-294), running along the Village's eastern boundary, provides rapid access to the northern and southern suburbs, and into Wisconsin and Indiana. The East-West Tollway (1-88), passing through the Village's northern sector, joins the Eisenhower Expressway to the northeast, providing direct access to Chicago's Loop. Additional links include east-west arteries Illinois Route 38 and U.S. Route 34, which pass, respectively, to the north and south of the Village, and Illinois Route 83, which bisects the community in a north-south direction. The Oak Brook area is 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 a high degree of economic stability. While the Illinois unemployment rate is approximately 5.9%, Du Page County has established an unemployment rate of 4.7%, significantly lower than the norm. According to the 2000 Census, over 80% of the households in Oak Brook are two or more persons, and over 74% of the occupants of the Village have resided in the same home in Oak Brook for over 5 years, indicating a strong level of population stability. Per capita income of Village residents in 2000 was $76,668 and the mean family income was $187,961. The Census also indicates that managerial, professional, and sales occupations are held by 88% of Village residents employed. The Village of Oak Brook has been and continues to be one of the preeminent business centers in the Chicago metropolitan area. Several Fortune 500 companies have facilities in the Village, including the corporate headquarters of McDonald's Corporation. As a retail center, Oak Brook offers upscale shopping, fine restaurants, and Oakbrook Center, one of the leading outdoor shopping centers in the United States. These factors, as well as the performance of the Illinois economy over time, have enabled the Village to continue to operate without a real estate tax due -- to the sales taxes generated from retail business activities. Changes are occurring that should enable the Village to continue to be successful well into the 21St century. As the Village evolved, thoughtful zoning regulations, particularly in the area of building and bulk regulations, contributed to its early success. However, with increasing competition from other suburbs, some changes to these regulations are occurring which will allow for taller buildings and greater floor area ratios. This has had a positive impact on the v Village as indicated by McDonald's commitment to remain in the Village and in the renovation of several older office buildings. — Major Initiatives In 2004, the Village completed the installation and implementation of a system-wide water meter — reading system, completed the 2004 paving program, upgraded most of the light bars on patrol vehicles, purchased several replacement vehicles including a new fire truck, replaced the — pumping equipment at Reservoir A, installed landscape materials and an irrigation system at the Library, and continued design and construction work on several safety pathway projects. Included in the 2005 budget is the 2005 paving project, upgrade of the Village's telephone system, computer hardware and software upgrades, pool painting and fence installation at the Sports Core, pond bank stabilization at the Golf Club, several water main projects including — replacement of a water main on Butterfield Road, numerous municipal building improvements including installation of HVAC screening at the Library and Municipal Complex, and design and construction of several safety pathway projects. — In later years, the Five-Year Financial Plan includes continuation of the annual paving program, improvements to the Village's safety pathway system, replacement of the roof at the Public Works facility, exterior and structural repairs at Old Butler School, replacement of the Village's accounting and Sports Core software packages, replacement of the street light cable on 22°d Street, significant maintenance expenses for Reservoir B, painting of the Village's elevated water — storage tanks, improvements to the water distribution system, and improvements to the ponds and driving range at the Golf Club. 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 Proprietary 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. In developing and evaluating the Village's accounting system, consideration 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. vi 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 versus budget accounting reports which are provided to all Trustees and department heads. All disbursements receive approval of the Board of Trustees. Total expenditures in any fund are legally restricted to the total amount budgeted, which is not changed without supplemental ordinance approval. The budget is monitored at the subfunction level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Factors Affecting Financial Condition The information presented in the financial statements is best understood when it is considered from a broader perspective of the specific environment which the Village operates. Local Economy The Village of Oak Brook has a large and diverse retail sales tax base which has enabled the Village to operate since inception without a real estate tax. With sales taxes being the largest source of revenue, the local and national economy has a significant effect on the amount of revenue the Village receives. Like most other communities, since the late 1990's through 2003 Oak Brook has experienced flat to declining sales tax revenue. In addition to the regional and national trends, Oak Brook has experienced the relocation of several significant sales tax payers to other local and out-of-state locations. This has resulted in revenue declines in excess of the national averages and has caused many challenges in funding the cost of government services. In order to find a permanent solution to this problem, the Village Board asked the voters to authorize the imposition of a non-home rules sales tax of 0.25% at the March, 2004 primary election. An overwhelming majority (74%) voted in favor of the proposal. Thus, the Village began recognizing revenue from this new revenue source on July 1, 2004 and it is estimated that in 2005 the Village will receive $2.4 million from the new tax. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This allows existing revenue sources used for those purposes (primarily utility taxes) for use on other governmental functions and should provide a long-term solution for funding governmental activities. Long-term Financial Planning The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Objectives-this is an annual process in which the Village Board and staff express specific results to be accomplished. Typically, objectives relate to a specific task or project or to a change in methods or operations designed to achieve the stated objective. vii Roadway Maintenance Plan-this plan is based on the Village's pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated annually, includes a long-range schedule of roadway maintenance activities as well as cost projections over the next ten year period in order to plan for the orderly maintenance of the Village's roadway system. Five-Year Financial Plan-this document is prepared annually in order to provide the Village Board and the community with a five year projection of the financial condition of each of the twelve funds that comprise the Village's financial structure. This document is not as precise as the annual budget but it does project both revenues and expenditures for each of the next five years. Annual Budget-using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers (called "programs") and sets the spending plan for the coming year. Pensions Employees of the Village of Oak Brook participate in one of three pension plans. They are: (1) the Police Pension Fund of the Village of Oak Brook, covering the Village's sworn personnel in the Police Department; (2) the Firefighters' Pension Fund of the Village of Oak Brook, covering the Village's sworn personnel in the Fire Department; and (3) the Illinois Municipal Retirement Fund, which covers all of the remaining Village employees who are normally scheduled to work in excess of 1,000 hours per year on a regular basis. Illinois Municipal Retirement Fund employees also participate in Social Security. Based on the most recent actuarial studies IMRF was 87.2% funded, the Police Pension Fund was 89.1% funded, and the Firefighters' Pension Fund was 80.4% funded. Debt Administration As a means of financing, bonding has been used on three occasions in the Village's history. In 1973 and 1976, revenue bonds were issued for the purchase of the water system from the Oak Brook Utility Company and for improvements and expansion of the system. After receiving referendum approval, general obligation bonds were issued in 1977 for the purchase of the Sports Core and improvements to the Golf Club. All of the bonds have since been retired, and the Village is now in the enviable position of having no bonded debt outstanding. _ The Village has, however, occasionally issued debt that is not supported by real estate taxes. In 1999, installment contract certificates were issued in order to finance construction of an irrigation system at the Golf Club. Repayment of this installment contract is anticipated to come from future Sports Core Fund revenues. In 2000, installment contract certificates of$1.8 million were issued in order to finance the Bath and Tennis Club clubhouse expansion and renovation. Proceeds from the sale of land to Du Page County for the widening of 31" Street were used to call $630,000 of the certificates during 2001. In 2003, the remaining certificates were called using proceeds of the Series 2003 General Fund Refunding Certificates. This refunding was done in order to adjust the annual debt service requirement to a level the Sports Core Fund could viii better support (the remaining repayment period was extended from 2007 to 2012). Both the 1999 and 2003 certificate issues are considered obligations of the Sports Core Fund. During 2001, the Village issued installment contract certificates totaling $4.0 million in order to partially fund the Municipal Complex project. These certificates were rated Aa2 by Moody's Investor Service, Inc., a very strong rating since there is no real estate tax pledge for the repayment of the certificates. Sales tax revenues will be utilized to repay these certificates. Based on the latest Five-Year Financial Plan, no additional debt issues are anticipated. Cash and Investment Management _ It is the policy of the Village of Oak Brook to invest idle cash and increase investment income by the efficient use of money market accounts, certificates of deposit, the Illinois Funds, the Illinois Metropolitan Investment Fund (IMET), and U.S. government and agency securities. The benchmark rate for evaluating the Village's investment performance is the three month Treasury bill rate plus 0.50%. For the year ended December 31, 2004 the total return on the Village's investments was 1.17% as compared to the average benchmark rate of 1.95%. The below benchmark performance is due to the Village's return from investments that are marked to market (most significantly IMET), which were negatively effected by five increases in short- term rates by the Federal Reserve in 2004. The Police Pension Fund and Firefighter's Pension Fund may invest in any type of investment instrument permitted by Illinois law, as described in 40 ILCS 5/1-113.1 through 113.4. Permitted investments include U.S. government and agency securities, certificates of deposits, common and preferred stocks, and mutual funds. By law stock and mutual fund investments are limited to 45% of the Fund's total assets. For the year ended December 31, 2004, the approximate rate of return on investments for the Police Pension Fund and Firefighters' Pension Fund was 8.04% and 8.29%, respectively. The favorable returns are due mainly to the performance of the Fund's equity mutual fund investments. Risk Management The Village of Oak Brook has an active risk management program in place. For employee benefits, resources are accumulated in the Self-Insurance Fund in order to fund health and dental insurance claims. Insurance coverage for liability, property damage, and workmen's compensation is maintained through the Intergovernmental Risk Management Agency (IRMA) for all claims greater than $2,500. Various risk control techniques, including employee safety and accident prevention training, have been implemented to minimize accident related losses. Independent Audit Statutes require an annual audit to be performed on 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. ix 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 year ended December 31, 2003. 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 27 consecutive years. We believe that our current Report conforms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another Certificate. 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. Ta� ` Darrell J. LanglAs Finance Director/Treasurer — x — i i i i a INDEPENDENT AUDITOR'S REPORT MEMBERS OF AMERICAN INSTITUTE OF Sikich Gardner & Co, LLP CERTIFIED PUBLIC ACCOUNTANTS Accountants & Consultants ILLINOIS CPA SOCIETY 998 Corporate Boulevard Aurora, IL 60504 A Member of Sikich Group, LLC INDEPENDENT AUDITOR'S REPORT The Honorable President Members of the Board of Trustees Village of Oak Brook Oak Brook, Illinois We have audited the accompanying basic financial statements of the Village of Oak Brook, '— Illinois as of and for the year ended December 31, 2004, as listed in the table of contents. These basic financial statements are the responsibility of the Village of Oak Brook, Illinois' management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material _ misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic 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 basic financial statements referred to above, present fairly, in all material respects, the financial position of the Village of Oak Brook, Illinois as of December 31, 2004, and the results of its operations and cash flows of its proprietary fund types for the year then — ended in conformity with accounting principles generally accepted in the United States of America. -- Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying financial information listed as combining and individual fund financial statements and schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the Village of Oak Brook, Illinois. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. - 1 - 4 e V- GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS — VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2004 As the management of the Village of Oak Brook (the "Village"), we offer readers of the Village's financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended December 31, 2004. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Transmittal Letter (beginning on page iv) and the Village's Financial Statements (beginning on page 17). This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village's financial activity, (3) identify changes in the Village's financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL REPORT Historically, the primary focus of local government financial statements has been summarized fund type information on a current financial resource basis. Due to the requirements of Government Accounting Standards Board Statement No. 34, beginning in 2003 this approach was modified so that now the Village's financial statements present two kinds of statements, each with a different snapshot of the Village's finances. The focus of the new financial statements is on both the Village as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant '— questions, broaden a basis for comparison (year to year or government to government) and enhance the Village's accountability. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad _ overview of the Village's finances, in a manner similar to a private-sector business. The focus of the Statement of Net Assets presents information on all of the Village's assets and liabilities, with the difference between the two reported as net assets. This statement combines and _ consolidates governmental fund's current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. (See independent auditor's report) - 3 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) — Thus, revenues and expenses are reported in this statement for some items that will only result in — cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements (see pages 17-19) distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village reflect the Village's basic services, including administration, police, fire and emergency medical services, engineering, public works, library, and community development. The — business-type activities of the Village, which are based on a fee for service designed to cover all or most of the cost of operation, include the waterworks system and operations of the Oak Brook Sports Core. — Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements — to be more familiar. The focus of the presentation is on major funds rather than fund types. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village, like other state and local _ governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds,proprietary funds, and fiduciary funds. — Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. — However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial — statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. — The Village maintains 5 individual governmental funds. Information is presented separately in the governmental fund balance sheet and statement of revenues, expenditures, and changes in fund balances for the General Fund and Infrastructure Fund, both of which are considered to be "major" funds. Data from the other 3 governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. (See independent auditor's report) _ - 4 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) The Village adopts an annual budget for each of its governmental funds. A budgetary comparison statement has been provided elsewhere in this report to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 20 through 23 of this report. Proprietary Funds. The Village maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village uses enterprise funds to account for its waterworks system and the operations of the Oak Brook Sports Core. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Village's various functions. The Village uses internal service funds to account for the costs of health and dental insurance, garage operations, and the funding of equipment replacement. Because the Village's costs for these items relate to both governmental and business-type functions, the costs have been allocated to each type of activity where appropriate. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Waterworks System and the Oak Brook Sports Core, both of which are considered to be major funds of the Village. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 24 through 27 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains two fiduciary funds: the Police Pension Fund and the Firefighters' Pension Fund. The basic fiduciary fund financial statements can be found on pages 28 through 29 of this report. Infrastructure Assets Historically, a government's largest group of assets (infrastructure assets- roads, bridges, storm sewers, etc.) have not been reported nor depreciated in governmental financial statements. GASB Statement No. 34 requires that these assets be valued and reported within the Governmental column of the Government-wide Statements. Additionally, the government must elect to (1) depreciate the assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity (modified approach). The Village has chosen to depreciate assets over their useful life. If a road project is considered maintenance-a recurring cost that does not extend the original useful life or expand its (See independent auditor's report) - 5 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) capacity-the cost of the project will be expensed. An "overlay" of a road will be considered — maintenance whereas a"rebuild" of a road will be capitalized. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial _ statements can be found on pages 30 through 54 of this report. Other Information _ In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village's progress in funding its obligation to provide benefits to its employees. Required supplementary information can be — found on pages 55 through 62 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds, and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 63 through 76 of this report. — Financial Analysis of the Village as a Whole Beyond presenting current year financial information in the government-wide and major — individual fund formats, the Village also presents comparative information from the prior year in the Management's Discussion and Analysis. By doing so, the Village is providing an additional means of analyzing its financial condition and financial position as of December 31, 2004. — (See independent auditor's report) - - 6 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) GOVERNMENT-WIDE STATEMENTS Net Assets The following table reflects the condensed Statement of Net Assets. Table 1 Statement of Net Assets As of December 31, 2004 and 2003 (in millions) Governmental Business-Type Total Primary Activities Activities Government 2004 2003 2004 2003 2004 2003 Current and Other Assets $ 20.0 $ 19.8 $ 3.0 $ 3.7 $ 23.0 $ 23.5 Capital Assets 65.0 65.3 25.2 25.2 90.2 90.5 Total Assets 85.0 85.1 28.2 28.9 113.2 114.0 Long-Term Liabilities 3.1 3.3 1.3 1.4 4.4 4.7 Other Liabilities 3.5 3.1 0.4 0.7 3.9 3.8 Total Liabilities 6.6 6.4 1.7 2.1 8.3 8.5 Net Assets: Invested in Capital Assets, Net of Debt 61.8 61.9 24.0 23.8 85.8 85.7 Restricted 0.8 1.1 0.8 1.1 Unrestricted 15.8 15.7 2.5 3.0 18.3 18.7 Total Net Assets $ 78.4 $ 78.7 $ 26.5 $ 26.8 7 104.9 $ 105.5 The Village's combined net assets decreased slightly from $105.5 to $104.9 million during 2004. Of this $0.6 million decrease, $0.3 million is attributable to governmental activities and $0.3 -- million is related to business-type activities. Depreciation expense was the primary cause of the decrease in the net assets for both governmental and business-type activities. For more detailed information, see the Statement of Net Assets on page 17. (See independent auditor's report) - 7 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Activities The following table summarizes the revenue and expenses of the Village's activities for 2004 and 2003: Table 2 Changes in Net Assets For the Fiscal Year Ended December 31, 2004 and 2003 (in millions) _ Governmental Business-Type Total Primary Activities Activities Government 2004 2003 2004 2003 2004 2003 i REVENUES _ Program Revenues: Charges for Services $ 2.1 $ 1.8 $ 7.3 $ 7.3 $ 9.4 $ 9.1 Grants and Contributions 0.4 0.3 0.4 0.3 General Revenues: Sales and Local Use Taxes 11.9 9.8 11.9 9.8 Utility Taxes 4.3 4.5 4.3 4.5 _ Other Taxes 1.1 1.1 1.1 1.1 Gain on Sale of Capital Assets 0.6 0.6 Other 0.1 0.6 0.1 0.1 0.2 0.7 _ Total Revenues 19.9 18.1 7.4 8.0 27.3 26.1 EXPENSES General Government 5.2 4.9 5.2 4.9 Public Safety 9.4 9.5 9.4 9.5 Public Works 3.7 3.0 3.7 3.0 _ Culture and Recreation 1.7 1.6 1.7 1.6 Waterworks System 4.3 5.4 4.3 5.4 Sports Core 3.4 3.7 3.4 3.7 _ Interest on Long-Term Debt 0.2 0.2 0.2 0.2 Total Expenses 20.2 19.2 7.7 9.1 27.9 28.3 Change in Net Assets $ (0.3) $ (1.1) $ (0.3) $ (1.1) $ (0.6) $ (2.2) Total Net Assets $ 78.4 $78.7 $26.5 $26.8 $ 104.9 $ 105.5 (See independent auditor's report) - 8 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) 2004 Revenues By Source Other Other 0.5% Charges for Taxes Services 4.2% 34.4% Utility Taxes 15.7% Grants and Contributions 1.5% Sales and Use Taxes 43.7% 2004 Expenses by Function w Sports Core General 12.1% Government Waterworks 19.3% System 15.4% Culture & Recreation w 6.1% Public Works Public Safety 13.4% 33.7% There are eight basic impacts on revenues and expenses as reflected below: Normal Impacts Revenues Economic condition- this can reflect a declining, stable, or growing economic environment and has a substantial impact on state income, sales, and utility tax revenue as well as public spending habits for building permits, elective user fees, and consumption volumes. (See independent auditor's report) - 9 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Increase/Decrease in Village approved rates- while certain tax rates are set by statute, the Village Board has significant authority to impose and periodically increase or decrease rates (water fees,utility tax rates,permit fees, etc.) Changing patterns in intergovernmental and grant revenue (both recurring and non- recurring- certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring or one-time grants are less predictable and often distort their impact on year-to-year comparisons. Market impacts on investment income- the Village's investment portfolio is managed using a similar average maturity to most other governments. Market conditions may cause investment income to fluctuate. Expenses i Introduction of new programs- within functional expense categories, individual programs may be added or deleted in order to meet the changing needs of the Village. OEM Changes in authorized personnel- changes in service demand may cause the Village Board to increase or decrease staffing levels. Personnel costs are the Village's most significant operating costs. Salary increases (annual adjustments and merit)- the ability to attract and retain quality personnel requires the Village to strive to have competitive salary ranges and pay practices. Inflation-while overall inflation has been reasonably modest, the Village is a major consumer of certain commodities such as supplies, fuels and parts. Some functions may experience unusual commodity specific increases. Current Year Impacts —. Revenues For the fiscal year ended December 31, 2004, revenues totaled $27.3 million, an increase of$1.8 million from 2003. Revenues from sales and use taxes, the Village's largest single revenue source, amounted to more than $11.9 million or 43.7% of total revenue, an increase of $2.1 million from 2003. Of this increase, $1.3 million is attributable to recognition of six months of -- revenue from the implementation of a 0.25% non-home rule sales tax effective July 1, 2004 (authorized by referendum in March, 2004). The remaining increase of$0.8 million is due to increased revenue from existing sales tax payers as well as the addition of one new large sales tax payer in 2004. Utility taxes, which includes the taxes imposed on electric, natural gas, and telecommunications services, were $4.3 million or 15.7% of total revenues. This amounts to a decrease of $0.2 million or 4.4% as compared to 2003. The decline in this revenue source continues a trend seen (See independent auditor's report) - 10 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) in the last several years and is attributable to the overall economy in general as well as the high level of competition in the telecommunications industry. The "other taxes" classification includes a number of different revenue sources including income taxes, personal property replacement taxes, foreign fire insurance taxes, and hotel taxes. For 2004, these revenues were $1.1 million or 4.2% of total revenues, which is essentially unchanged from 2003. The economic factors in the overall economy that impact these revenue sources have been relatively flat for the last several years and thus these revenues have not changed significantly. Charges for services, which include revenue from water sales as well as user fees from the Oak Brook Sports Core, were $9.4 million or 34.4% of total revenue, an increase of$0.3 million from 2003. Water system revenues increased $0.3 million from 2003 levels due to an increase in the water rate of $0.25 per thousand gallons effective January 1, 2004. Sports Core revenues decreased $0.2 million due primarily to declines in special event food and beverage revenue. Increased levels of permit and inspection activities are the primary cause of an increase of$0.2 million in charges for services for governmental activities. Although not reflected on the revenue table and graphs, the comparative data shown on various financial statements and schedules includes a special revenue item, which was a gain on sale of assets of$616,470 in 2003. In 1998, the voters of Oak Brook authorized by referendum the sale of approximately 3 acres of surplus real estate, consisting primarily of 3 residential lots, in the Westchester Park subdivision. In 2003, one of the lots was sold, thus giving rise to the revenue item. The remaining two lots were sold in 2005. The Sports Core Fund is the beneficiary of the real estate sale proceeds. Expenses Oak Brook's expenses amounted to a total of$27.9 million in 2004, a decrease of$0.4 million from 2003. As required by GASB Statement No. 34, the expense totals include depreciation expense of$1.6 million for governmental activities and $0.7 million of business-type activities. Depreciation expense, which includes depreciation on infrastructure, has been allocated over the most appropriate functional category. Public safety expenses related to the operations of the Police Department and Fire Department accounted for $9.4 million or 33.7% of total expenses, a slight decrease of $0.1 from 2003. _ General government expenses were $5.2 million, an increase of $0.3 million from 2003. In addition to normal inflationary causes, general government expenditures increased by approximately $0.1 million due to recognition of the settlement liability for litigation surrounding the Infrastructure Maintenance Fee (IMF), which was imposed by the Village from 1998 to 2000 (see page 49 for a further explanation). Public works expenses were $3.7 million, an increase of $0.7 million from 2003. Most of this change was due to an increased roadway maintenance program as compared to 2003. Culture and recreation expenses were $1.7 million, and increase of$0.1 million over 2003. (See independent auditor's report) - 11 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) For business-type activities, expenses for the waterworks system were $4.3 million, a decline of — $1.1 million from 2003. The change in expenses is due to a reduction of$0.9 million in meter reading system costs since the majority of expenses for this $1.1 million program were incurred in 2003, and payments to the Du Page Water Commission declined $0.2 million from 2003 due to a decrease in water purchased as well a decrease in fixed cost payments. For the Sports Core, expenses were $3.4 million, a decrease of$0.3 million from 2003. The decrease in expenses is due to the decline in business level for the food and beverage operations as compared to 2003 as well the successful implementation of several different initiatives designed to lower payroll costs of the operation in order to strive to achieve break-even results. FINANCIAL ANALYSIS OF THE VILLAGES FUNDS Governmental Funds As noted earlier, the Village of Oak Brook uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of December 31, 2004, the governmental funds (as presented on the balance sheet on page 20) had a combined fund balance _ of$15.1 million. This reflects a combined increase of$0.6 million over the prior year and is due to an increase of $0.1 million in the General Fund, an increase of $0.7 million in the Infrastructure Fund and a reduction of $0.2 million in other governmental funds. The General — Fund increase is due to normal operations, the Infrastructure Fund increase is due to revenue from the new 0.25% non-home rule sales tax, and the decrease in other governmental funds is due to utilizing Motor Fuel Tax funds to partially fund the 2004 roadway maintenance program. Proprietary Funds Net assets for the Village's two business-type activities declined $241,298 from 2003 (see pages 24 and 25). Depreciation expense is the cause of the decrease in both the Waterworks System Fund and the Sports Core Fund. It is important to note, however, that in 2004 there were several _ initiatives done at the Sports Core designed to improve profitability such as reductions in payroll costs, lowering Bath and Tennis Club membership fees in hopes of increasing the number of members, and providing incentives through the membership to have members participate in more _ food and beverage events. Due primarily to these initiatives, an operating loss of$125,456 in 2003 improved to having operating income of$2,940 in 2004. In 2003, the Village Board policy was to require budget transfers when an individual program or fund exceeds its budget in total. In addition to these program transfers, beginning in 2004 the Village Board approved an ordinance requiring a budget transfer for any individual line item — account that exceeded its budget by more than 110%. In order to stay in compliance with these policies, the Village Board amended the original budget seven times during the year. Since the settlement payment for the Infrastructure Maintenance Fee litigation was unforeseen at the — beginning of the year, the original budget in total for the General Fund was increased by $126,490 in order to budget funds for this expense. (See independent auditor's report) - 12 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2004 (in millions) Original Amended Budget Budget Actual REVENUES AND TRANSFERS Intergovernmental $ 11,054,000 $ 11,054,000 $ 11,401,599 Utility Taxes 3,977,200 3,977,200 3,638,052 Licenses &Permits 560,800 560,800 741,528 Charges for Services 631,100 631,100 745,027 Other 882,610 882,610 649,688 Total Revenues and Transfers 17,105,710 17,105,710 17,175,894 EXPENDITURES General Government 5,146,365 5,202,960 5,144,466 Public Safety 9,458,270 9,606,140 9,572,845 Public Works 1,228,055 1,173,140 1,131,843 Culture and Recreation 1,204,500 1,181,440 1,177,862 Total Expenditures and Transfers 17,037,190 17,163,680 17,027,016 Change in Fund Balance $ 68,520 $ (57,970) $ 148,878 Due to some improvement in the economy, intergovernmental revenues were over budget due to actual sales tax revenue exceeding the budgetary projections. Utility tax revenue was under budget due to declines in the amount of telecommunications taxes that the Village receives. Licenses and permits as well as charges for services were over budget due to increased activity in these areas. Other income was under budget due to historically low market interest rates negatively effecting investment income and donation revenue was under budget since the Independence Day celebration was not sponsored this year. Actual expenditures were 99.94% of the original budget and 99.20% of the revised budget. None of the variances underlying these totals are individually significant. (See independent auditor's report) - 13 - VILLAGE OF OAK BROOK,ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) - Capital Assets The following schedule reflects the Village's capital asset balances as of December 31, 2004 and 2003. Table 4 - Capital Assets As of December 31, 2004 and 2003 (in millions) Governmental Business-Type _ Activities Activities Total 2004 2003 2004 2003 2004 2003 Land and Land Right of Way $ 32.3 $ 32.3 $ 8.3 $ 8.3 $ 40.6 $ 40.6 Buildings and Land Improvements 18.7 18.6 8.5 8.5 27.2 27.1 Machinery, Vehicles, and Equipment 6.9 6.4 4.8 4.6 11.7 11.0 - Infrastructure 29.3 29.3 15.4 15.4 44.7 44.7 Construction in Progress 0.6 0.2 0.1 0.8 _0.1 87.8 86.6 37.2 36.9 125.0 123.5 Less: Accumulated Depreciation (22.8) (21.3) (12.0) (11.7) (34.8) (_33.0) Total $ 65.0 $ 65.3 $ 25.2 $ 25.2 $ 90.2 $ 90.5 At year-end, the Village's investment in capital assets (net of accumulated depreciation) for both its governmental and business-type activities was $90.2 million, a decrease of 0.3 million from 2003 (see Note 5 in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2004 included the following: • Five Police vehicles and one Fire truck totaling $0.5 million were purchased for use in governmental activities and one vehicle totaling $0.1 million was purchased for use in _ business-type activities. • Pumping equipment at Reservoir A and five golf maintenance equipment items were replaced in 2004, adding $0.5 million to the capital assets of business-type activities. _ • An irrigation system and landscaping for the Library, landscaping at the Municipal Complex, and the purchase of several IVAC MDT/Video units for use in police patrol vehicles added $0.1 million to the capital assets of governmental activities. _ (See independent auditor's report) - 14 - _ VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) Long-Term Debt As a non-home rule community, the Village's legal general obligation debt limit is 8.625 percent of equalized assessed valuation (EAV), or $114,462,334 based on January 1, 2003 EAV of $1,327,099,526. As of December 31, 2004, the Village has $4,400,000 of debt outstanding attributed to three installment contracts that is applicable to the legal limit (see Note 7 in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village's outstanding long-term debt: Table 5 Long-term Debt As of December 31,2004 Governmental Business-Type Activities Activities Total General Fund Certificates: Series 1999 $ - $ 455,000 $ 455,000 Series 2001 3,195,000 3,195,000 Series 2003 (Refunding) 750,000 750,000 Total $ 3,195,000 $ 1,205,000 $ 4,400,000 The General Fund Certificates are general obligations of the Village but are not secured by a pledge of property taxes. With respect to the 1999 and 2003 series certificates, the Village _ intends to use Sports Core Fund revenues to pay the annual debt service. Thus, these obligations have been included with business-type activities. Both the General Fund Certificates, Series 1999 and General Fund Certificates, Series 2001 received a rating of Aa2 from Moody's Investor Service, Inc. Economic Factors and Next Year's Budget Whereas real estate taxes are typically a major source of revenue in most other municipalities, the Village of Oak Brook does not levy a tax on real estate. In addition, since Oak Brook is a non-home rule community and is subject to the tax cap, this effectively limits the Village's real estate tax levy at $-0-. Thus, as compared to other municipalities, Oak Brook's revenue stream is much more dependent on the local and national economy since sales taxes, utility taxes, and state-shared revenues are the primary sources of income to the Village. Over the last several years, the state of the economy as well as the relocation of several taxpayers to other jurisdictions has resulted in significant declines in sales tax revenue. Decreases in various state-shared revenues have been well documented. In order to offset these declines, the Village has had to increase the rates of tax of various utility taxes to the state mandated (See independent auditor's report) - 15 - VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (continued) — maximum rates of 5% on electric and natural gas service and to 5% (1% below the maximum — rate) on telecommunications taxes. Despite these rate increases the Village has still struggled to fund the ever-increasing cost of government with its existing revenue streams. In order to find a permanent solution to the revenue situation, the Village Board asked the voters to authorize the imposition of a non-home rules sales tax of 0.25% at the March, 2004 primary election. An overwhelming majority of voters (74%)voted in favor of the proposal. Imposition of the new non-home rule sales tax began on July 1, 2004 and the Village began receiving payments in October, 2004. For 2005 it is estimated that this new tax will generate additional revenue of $2.4 million annually. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This will free up existing revenue sources used for those purposes (primarily utility taxes) for use on other governmental functions and should provide a long-term solution for funding governmental activities. '- CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the Village's finances and to demonstrate accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Darrell J. Langlois, Finance DirectorNillage Treasurer, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. — (See independent auditor's report) - 16 - VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF NET ASSETS December 31, 2004 Governmental Business-Type Activities Activities Total ASSETS Cash and investments $ 12,681,372 $ 3,274,065 $ 15,955,437 Receivables(net of allowances for uncollectibles) _ Sales taxes 3,487,696 - 3,487,696 Utility taxes 866,527 - 866,527 Accounts 99,338 - 99,338 Billed and unbilled water sales - 375,158 375,158 Allotments 21,434 - 21,434 Accrued interest 4,693 1,306 5,999 Other 684,169 66,117 750,286 Due from other funds 933,352 (933,352) - Advances to(from) other funds 1,290,000 (1,290,000) - Inventories 40,220 169,846 210,066 Water purchase rights - 1,331,293 1,331,293 Capital assets Non-depreciable 32,890,491 8,562,177 41,452,668 Depreciable, net of accumulated depreciation 32,065,345 16,671,706 48,737,051 Total assets 85,064,637 28,228,316 113,292,953 LIABILITIES Accounts payable 536,123 271,599 807,722 Accrued payroll 499,140 71,587 570,727 Accrued interest 12,453 8,198 20,651 Claims payable 427,000 - 427,000 Deposits 979,704 26,423 1,006,127 Deferred revenue 202,140 60,134 262,274 Long-tern liabilities Due within one year 919,493 229,206 1,148,699 Due in more than one year 3,054,180 1,045,000 4,099,180 Total liabilities 6,630,233 1,712,147 8,342,380 NET ASSETS Invested in capital assets, net of related debt 61,760,836 24,028,883 85,789,719 Restricted for Maintenance of roadways 459,431 - 459,431 Public safety 138,085 - 138,085 Culture and recreation 253,355 - 253,355 Unrestricted 15,822,697 2,487,286 18,309,983 TOTAL NET ASSETS $ 78,434,404 $ 26,516,169 $ 104,950,573 See accompanying notes to financial statements. - 17 - VILLAGE OF OAK BROOK,ILLINOIS STATEMENT OF ACTIVITIES For the Year Ended December 31,2004 Program Revenues _ Charges Operating Capital FUNCTIONS/PROGRAMS Expenses for Services Grants Grants PRIMARY GOVERNMENT Governmental Activities - General government $ 5,219,020 $ 1,180,314 $ - $ - Public safety 9,384,398 839,275 3,774 - Public works 3,739,706 16,608 248,355 151,203 _ Culture and recreation 1,703,244 26,584 - - Interest 158,552 - - - Total governmental activities 20,204,920 2,062,781 252,129 151,203 Business-Type Activities Waterworks system 4,307,091 4,014,978 - - Sports core 3,361,038 3,318,594 - - Total business-type activities 7,668,129 7,333,572 - - TOTAL PRIMARY GOVERNMENT $ 27,873,049 $ 9,396,353 $ 252,129 $ 151,203 General Revenues Taxes Replacement Sales,local use Utility Hotel/motel Income Other —' Investment income Miscellaneous Total CHANGE IN NET ASSETS NET ASSETS,JANUARY 1 NET ASSETS,DECEMBER 31 - 18- Net(Expense)Revenue and Change in Net Assets Primary Government Governmental Business-Type `— Activities Activities Total $ (4,038,706) $ - $ (4,038,706) (8,541,349) - (8,541,349) (3,323,540) - (3,323,540) (1,676,660) - (1,676,660) (158,552) - (158,552) (17,738,807) - (17,738,807) (292,113) (292,113) - (42,444) (42,444) (334,557) (334,557) (17,738,807) (334,557) (18,073,364) 187,252 - 187,252 11,925,906 - 11,925,906 4,298,744 - 4,298,744 323,325 - 323,325 553,034 - 553,034 85,749 - 85,749 104,869 32,453 137,322 2,016 - 2,016 i 17,480,895 32,453 17,513,348 (257,912) (302,104) (560,016) 78,692,316 26,818,273 105,510,589 $ 78,434,404 $ 26,516,169 $ 104,950,573 See accompanying notes to financial statements. - 19- VILLAGE OF OAK BROOK,ILLINOIS GOVERNMENTAL FUNDS BALANCE SHEET i December 31,2004 Nonmajor Governmental Total General Infrastructure Funds Governmental ASSETS Cash and investments $ 7,100,982 $ 2,264,034 $ 886,528 $ 10,251,544 Receivables Sales taxes 2,751,254 736,442 - 3,487,696 ^ Utility taxes 823,912 42,615 - 866,527 Accounts 99,338 - - 99,338 Allotments - - 21,434 21,434 Accrued interest 3,104 444 417 3,965 Other 175,225 124,559 29,245 329,029 Due from other funds 933,352 - - 933,352 MM Advances to other funds 1,290,000 - - 1,290,000 Inventories 2,859 - - 2,859 TOTAL ASSETS $ 13.180,026 $ ').168.094 S 937,624 S 17,285,744 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 340,970 $ 96,150 $ 86,753 S 523,873 Accrued payroll. 490,909 - - 490,909 _ Deposits payable 966,440 13,264 - 979,704 Deferred revenue 139,727 62,413 - 202,140 I Total liabilities 1,938,046 171,827 86,753 2.,196,626 FUND BALANCES Reserved for inventories 2,859 - - 2,859 �r Reserved for advances 1,290,000 - - 1,290,000 Reserved for maintenance of roadways - - 459,431 459,431 Reserved for public safety - - 138,085 138,085 Reserved for culture and recreation - - 253,355 253,355 Unreserved Undesignated-general fund 9,949,121 - - 9,949,121 Undesignated-capital projects fund - 2,996,267 - 2,996,267 Total fund balances 11,241,980 2,996,267 850,871 15,089,118 TOTAL LIABILITIES AND FUND BALANCES $ 13,180,026 $ 3,168,094 $ 937.624 $ 17.285,744 See accompanying notes to financial statements. -20- VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS December 31, 2004 FUND BALANCES OF GOVERNMENTAL FUNDS $ 15,089,118 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 63,076,005 Interest payable is not due and payable in the current period and,therefore, is not reported in the governmental funds (12,453) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: Installment contracts payable (3,195,000) Compensated absences payable (768,206) A portion of the net assets of the internal service funds are included in the governmental activities in the statement of net assets 4,244,940 NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 78,434,404 See accompanying notes to financial statements. - 21 - VILLAGE OF OAK BROOK,ILLINOIS GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES For the Year Ended December 31,2004 i Nonmajor Total Governmental Governmental General Infrastructure Funds Funds REVENUES Intergovernmental $ 11,401,599 $ 151,203 $ 298,000 $ 11,850,802 Non-home rule sales tax - 1,304,467 - 1,304,467 Utility taxes 3,638,052 660,692 - 4,298,744 Hotel/motel taxes - - 323,325 323,325 Licenses and permits 741,528 - - 741,528 Charges for services 745,027 - - 745,027 Fines and penalties 401,616 - - 401,616 Investment income 71,442 24,636 8,791 104,869 Miscellaneous 176,630 - - 176,630 Total revenues 17,175,894 2,140,998 630,116 19,947,008 _ EXPENDITURES Current General government 5,144,466 - - 5,144,466 Public safety 9,572,845 - 18,071 9,590,916 Public works 1,131,843 451,330 440,811 2,023,984 Culture and recreation 1,177,862 - 385,595 1,563,457 r` Capital outlay - 1,009,984 - 1,009,984 Total expenditures 17,027,016 1,461,314 844,477 19,332,807 NET CHANGE IN FUND BALANCES 148,878 679,684 (214,361) 614,201 FUND BALANCES,JANUARY 1 11,093,102 2,316,583 1,065,232 14,474,917 FUND BALANCES,DECEMBER 31 $ 11,241,980 $ 2,996,267 $ 850,871 $ 15,089,118 See accompanying notes to financial statements. -22 - VILLAGE OF OAK BROOK, ILLINOIS RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2004 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ 614,201 Amounts reported for governmental activities in the statement activities are different because: Governmental funds report capital outlays as expenditures however, they are capitalized and depreciated in the statement of activities 698,808 The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the statement of activities 215,000 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Depreciation, including internal service funds (1,569,335) Change in compensated absences 45,828 Change in interest payable 829 The change in net assets of certain activities of internal service funds, excluding depreciation, is included in governmental activities (263,243) CHANGES IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ (257,912) See accompanying notes to financial statements. - 231 - VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF NET ASSETS December 31,2004 Business-Type Activities Waterworks Internal System Sports Core Total Service CURRENT ASSETS Cash and investments $ 2,908,196 $ 184,684 $ 3,092,880 $ 2,611,013 Receivables Billed and unbilled water sales 375,158 - 375,158 - Accrued interest 1,122 126 1,248 786 Other 13,276 52,841 66,117 355,140 Inventories - 169,846 169,846 37,361 Total current assets 3,297,752 407,497 3,705,249 3,004,300 CAPITAL ASSETS Non-depreciable 333,866 8,228,311 8,562,177 - Depreciable,net of accumulated depreciation 11,144,786 5,272,791 16,417,577 2,133,960 Total capital assets 11,478,652 13,501,102 24,979,754 2,133,960 �t NONCURRENT ASSETS Water purchase rights 1,331,293 - 1,331,293 - Total assets 16,107,697 13,908,599 30,016,296 5.138.260 CURRENT LIABILITIES Accounts payable 219,719 51,880 271,599 12,250 Accrued payroll 30,694 40,893 71,587 8,231 Accrued interest - 8,198 8,198 - Compensated absences payable 24,189 45,017 69,206 10,467 Deposits - 26,423 26,423 - .� Deferred revenue 11,064 49,070 60,134 - Due to other funds - 933,352 933,352 - Installment contracts payable - 160,000 160,000 - Claims payable - - - 427,000 ^, Total current liabilities 285,666 1,314,833 1,600,499 457,948 LONG-TERM LIABILITIES Advances from other funds - 1,290,000 1,290,000 - Installment contract payable - 1,045,000 1,045,000 - Total long-term liabilities - 2,335,000 2,335,000 - Total liabilities 285,666 3,649,833 3,935,499 457,948 NET ASSETS Invested in capital assets,net of related debt 11,478,652 12,296,102 23,774,754 2,133,960 Unrestricted 4,343,379 (2,037,336) 2,306,043 2,546,352 .-w TOTAL NET ASSETS $ 15,822,031 $ 10,258,766 26,080,797 $ 4,680,312 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 435,372 �► $ 26,516,169 See accompanying notes to financial statements. -24- VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31, 2004 Business-Type Activities Waterworks Internal System Sports Core Total Service OPERATING REVENUES Charges for services $ 4,014,978 $ 3,318,594 $ 7,333,572 $ 2,554,803 .. Total operating revenues 4,014,978 3,318,594 7,333,572 2,554,803 OPERATING EXPENSES Operations 3,810,475 3,049,013 6,859,488 456,211 Claims and insurance - - - 2,387,418 Miscellaneous - - - 38,341 Depreciation and amortization 435,810 266,641 702,451 325,492 Total operating expenses 4,246,285 3,315,654 7,561,939 3,207,462 OPERATING INCOME(LOSS) (231,307) 2,940 (228,367) (652,659) NONOPERATING REVENUES (EXPENSES) Miscellaneous income - - - 839 Investment income 30,009 2,444 32,453 32,222 Gain(loss)on sale of capital assets - - - 8,458 Interest expense - (45,384) (45,384) - Total nonoperating revenues(expenses) 30,009 (42,940) (12,931) 41,519 CHANGE IN NET ASSETS (201,298) (40,000) (241,298) (611,140) NET ASSETS,JANUARY 1 16,023,329 10,298,766 26,322,095 5,291,452 NET ASSETS,DECEMBER 31 $ 15,822,031 $ 10,258,766 26,080,797 $ 4,680,312 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 435,372 $ 26,516,169 See accompanying notes to financial statements. -25 - w VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS + STATEMENT OF CASH FLOWS For the Year Ended December 31,2004 Business-Type Activities Waterworks Internal System Sports Core Total Service _ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from internal services transactions $ - $ - $ - $ 1,950,224 Receipts from customers and users 3,941,959 3,340,263 7,282,222 - Receipts from miscellaneous revenue 48,392 - 48,392 605,340 Payments to suppliers (3,431,889) (1,211,061) (4,642,950) (2,880,813) Payments to employees (570,801) (1,840,165) (2,410,966) (161,697) Net cash from operating activities (12,339) 289,037 276,698 (486,946) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES None - - - - ,.a Net cash from non-capital financing activities - - - - CASH FLOWS FROM CAPITAL AND - RELATED FINANCING ACTIVITIES Purchase of capital assets (466,301) (68,500) (534,801) (368,593) Proceeds from sale of capital assets - - - 8,458 _ Principal paid on installment contract payable - (155,000) (155,000) - Interest paid - (46,639) (46,639) - Net cash from capital and related financing activities (466,301) (270,139) (736,440) (360,135) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments (16,494) (19,358) (35,852) (11,548) - Interest received 33,982 2,861 36,843 35.003 Net cash from investing activities 17.488 (16,497) 991 23,455 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (461,152) 2,401 (458,751) (823,626) CASH AND CASH EQUIVALENTS, JANUARY 1 1,876.083 14,079 1,890,162 2,389,124 ' r CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1.414,931 $ 16,480 $ 1,431,411 $ 1,565,498 (This statement is continued on the following page.) -26 VILLAGE OF OAK BROOK,ILLINOIS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS(Continued) For the Year Ended December 31,2004 Business-Type Activities Waterworks Internal System Sports Core Total Service CASH AND INVESTMENTS Cash and cash equivalents $ 1,414,931 $ 16,480 $ 1,431,411 $ 1,565,498 Investments 1,493,265 168,204 1,661,469 1,045,515 TOTAL CASH AND INVESTMENTS $ 2,908,196 $ 184,684 $ 3,092,880 $ 2,611,013 NONCASH TRANSACTIONS Capital assets included in prior year prepaid expenses $ - $ - $ - $ 380,000 Capital assets included in accounts payable 27,957 6,000 33,957 6,000 Unrealized gain(loss)on investments (3,607) (393) (4,000) (2,525) TOTAL NONCASH TRANSACTIONS $ 24,350 $ 5,607 $ 29,957 $ 383,475 RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income(loss) $ (231,307) $ 2,940 $ (228,367) $ (652,659) Depreciation and amortization 435,810 266,641 702,451 325,492 Miscellaneous income - - - 839 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities Accounts receivable (24,628) - (24,628) (355,118) Other receivable 2,866 26,296 29,162 - Inventories - (7,102) (7,102) 9,177 Accounts payable (187,768) 14,297 (173,471) (14,213) Accrued payroll and compensated absences (4,447) (9,408) (13,855) (1,664) Claims payable - - - 201,200 _ Deposits payable - (972) (972) - Deferred revenue (2,865) (3,655) (6,520) - NET CASH FROM OPERATING ACTIVITIES $ (12,339) $ 289,037 $ 276,698 $ (486,946) See accompanying notes to financial statements. -27- VILLAGE OF OAK BROOK, ILLINOIS STATEMENT OF FIDUCIARY NET ASSETS December 31, 2004 Pension Trust ASSETS Cash $ 572,633 _ Investments Illinois Funds 343,928 Certificates of Deposit 100,154 _ U.S. Treasury Securities 5,466,847 U.S. Agency Securities 15,912,402 State and Local Obligations 2,133,878 — Mutual Funds 18,813,975 Accrued interest receivable 214,272 Total assets 43,558,089 LIABILITIES J` Accounts payable 5,370 Total liabilities 5,370 NET ASSETS HELD IN TRUST FOR _ PENSION BENEFITS $ 43,552,719 See accompanying notes to financial statements. - 28 - VILLAGE OF OAK BROOK,ILLINOIS PENSION TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS For the Year Ended December 31, 2004 ADDITIONS Contributions Employer contributions $ 940,264 Employee contributions 471,772 Total contributions 1,412,036 Investment income Net appreciation in fair value of investments 2,229,603 Interest 1,084,541 Total investment income 3,314,144 Less investment expense (72,089) Net investment income 3,242,055 Total additions 4,654,091 DEDUCTIONS Benefits and refunds 2.089,711 Administrative 56,983 .- Total deductions 2,146,694 NET INCREASE 2,507,397 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 41,045,322 December 31 $ 43,552,719 — See accompanying notes to financial statements. -29 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS December 31, 2004 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Village of Oak Brook, Illinois (the Village) have been prepared in conformity with accounting principles generally accepted in the United States of America(hereinafter referred to as generally accepted accounting principles (GAAP)), as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Village's accounting policies are described below. a. Reporting Entity The Village operates under a Village form of government with an elected Village President and Board of Trustees. Operational management is provided by a professional Village Manager employed by the Board of Trustees. Municipal services include police protection, fire protection, recreation facilities, a free public library, water supply, storm water collection, public works operations, road maintenance, building and inspectional services and general administrative services. As required by generally accepted accounting principles, these financial statements present the Village (the primary government) and its component units. The Village's financial statements include the following pension trust funds: Police Pension Employees Retirement System The Village's police employees participate in the Police Pension Employees Retirement System (PPERS). PPERS functions for the benefit of these employees and is governed its pension board. The Village and PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it possesses many of the characteristics of a legally separate government the PPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village's police employees and because of —' the fiduciary nature of such activities. The PPERS is reported as a pension trust fund. - 30 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a. Reporting Entity (Continued) ` Firefighters' Pension Employees Retirement System The Village's firefighters participate in the Firefighters' Pension Employees Retirement System (FPERS). FPERS functions for the benefit of these employees and is governed by its pension board. The Village and FPERS participants are r obligated to fund all FPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it possesses many of the characteristics of a legally separate government, the FPERS is reported as if it were part of the primary — government because its sole purpose is to finance and administer the pensions of the Village's firefighters and because of the fiduciary nature of such activities. The FPERS is reported as a pension trust fund. b. Fund Accounting The Village uses funds to report on its financial position, results of its operations and cash flows. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The minimum number of funds is maintained consistent with legal and managerial requirements. Funds are classified into the following categories: governmental, proprietary and fiduciary. Governmental funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies (special revenue funds), the acquisition or construction of general capital assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The general fund is used to account for all activities of the general government not accounted for in some other fund. - 31 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) b. Fund Accounting (Continued) Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds). Pursuant to GASB Statement No. 20,Accounting and Financial Reporting for Proprietary Funds and Other Government Entities That Use Proprietary Fund Accounting,the Village has chosen to apply all GASB pronouncements as well as those FASB pronouncements issued on or before November 30, 1989 to account for its enterprise funds. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government. The Village utilizes pension trust funds which are generally used to account for assets that the Village holds in a fiduciary capacity. C. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e.,the statement of net assets and the statement of activities)report information on all of the nonfiduciary activities of the Village. The effect of material interfund activity has been eliminated from these —' statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function, segment or program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase,use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and standard revenues that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds,proprietary funds and fiduciary funds, even though the latter are excluded from the govemment-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. - 32 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Government-Wide and Fund Financial Statements (Continued) The Village reports the following major governmental funds: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Infrastructure Fund, a capital projects fund, is used to account for revenues and expenditures relative to the construction and maintenance of roadway, drainage and bike trail improvements. The Village reports the following major enterprise funds: The Waterworks System Fund accounts for the revenues and expenses relative to the operation of the water utility. The Sports Core Fund accounts for the revenues and expenses relative to the operation of the Oak Brook Sports Core. Additionally,the Village reports the following internal service funds: Internal service funds account for the Village's self-insured employee health and _ dental insurance program;the operation and maintenance of the Village's vehicle fleet equipment, and the Village's capital replacement program provided to other departments or agencies of the Village on a cost reimbursement basis. The Village reports the following fiduciary funds: The Village reports pension trust funds as fiduciary funds to account for the Police Pension Fund and Firefighters' Pension Fund. - 33 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary funds fund financial statements. Revenues and additions are recorded when earned and expenses and deductions are recorded when a liability is incurred. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Operating revenues/expenses include all revenues/expenses directly related to providing enterprise fund services. Incidental revenues/expenses are reported as non-operating. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. A sixty-day availability period is used for revenue recognition for most governmental fund revenues except for sales tax and telecommunication tax which is 90 days. Expenditures generally are recorded when a fund liability is incurred. However, debt service expenditures are recorded only when payment is due by the end of the year. _ Those revenues susceptible to accrual are sales taxes, certain taxes collected and held by the State at year-end on behalf of the Village, certain charges for services and interest. Permit revenues are not susceptible to accrual because generally they are not measurable until received in cash. The Village reports deferred revenue on its financial statements. Deferred revenues arise when a potential revenue does not meet both the "measurable"and"available"or "earned"criteria for recognition in the current period. Deferred revenues also arise when resources are received by the Village before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods,when both revenue recognition criteria are met, or when the Village has a legal claim to the resources, the liability for deferred revenue is removed -- from the financial statements and revenue is recognized. - 34 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) In applying the susceptible to accrual concept to intergovernmental revenues (i.e., — federal and state grants), the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types _ of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the Village; therefore, revenues are recognized based upon the expenditures/expenses incurred. In the other, monies are virtually unrestricted as to purpose of expenditure/expense and are generally revocable only for failure to comply with prescribed eligibility requirements. These resources are reflected as revenues at the time of receipt or earlier if they meet the eligibility criterion. e. Cash and Investments Cash and Cash Equivalents For purposes of the statement of cash flows, the Village's proprietary fund types consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Investments In accordance with Governmental Accounting Standards Board Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, non-negotiable certificates of deposit and investments with maturity of less than one year at date of purchase, if any, are stated at amortized cost. All other investments are stated at fair value. All investments of the pension trust funds are stated at fair value. f. Inventories v Inventories are valued at average cost, not in excess of replacement cost. Inventories in the General Fund and Garage Fund consist of expendable supplies held for consumption; inventories in the Sports Core Fund consist of inventory held for resale. The cost is recorded as an expenditure at the time individual inventory items are utilized or sold. General Fund inventories are equally offset by a fund balance -- reserve which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. - 35 - -- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) g. Prepaid Items/Expenses Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. h. Capital Assets _ Capital assets, which include property,plant, equipment and infrastructure assets(e.g., roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial _ statements. Capital assets are defined by the Village as assets with an initial, individual cost of$5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property,plant and equipment is depreciated using the straight line method over the following estimated useful lives: Assets Years Land improvements 20 Buildings and building improvements 5 - 50 Equipment 5 -20 Vehicles 2 - 20 Infrastructure 20- 75 i. Intangible Assets - Water Purchase Rights The Village is a customer of the DuPage Water Commission (the Commission) and _ has executed a Water Supply Contract(the Contract) with the Commission for a term ending in 2024. The Contract provides that the Village pay its proportionate share of "fixed costs" (debt service and capital costs)to the Commission, such obligation being unconditional and irrevocable whether or not water is ever delivered. These costs were capitalized until the Commission began to deliver water, and are amortized, using the straight-line method over the remaining term of the contract and expensed along with the other operation charges from the Commission. - 36 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j. Compensated Absences Vested or accumulated vacation, sick or compensatory leave including related social security and medicare of proprietary funds and governmental activities is recorded as an expense and liability of those funds as the benefits accrue to employees. In accordance with the provisions of Governmental Accounting Standards Board Statement No.16,Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that it is estimated will be taken as a termination benefit at retirement. k. Interfund Transactions Interfund services 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 interfund services transactions and reimbursements, are reported as transfers. 1. Interfund Receivables/Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"due to/from other funds" (i.e.,the current portion of interfund loans) or"advances to/from other funds" (i.e.,the non-current portion of interfund loans). All other outstanding balances between funds are reported as"due to/from other funds". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. in. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type financial statements. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. - 37 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Long-Term Obligations (Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face _ amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs,whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. n. Fund Equity/Net Assets In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. In the government-wide financial statements, restricted net assets are legally restricted by outside parties for a specific purpose. Invested in capital assets,net of related debt,represents the Village's investments in the book value of capital assets, less any outstanding debt that was issued to construct or acquire the capital asset. 2. DEPOSITS AND INVESTMENTS The Village maintains a cash and investment pool that is available for use by all funds, except the pension trust funds. Each fund type's portion of this pool is displayed on the "cash and investments." In addition, investments are separately held by several of the Village's funds. As required by State statute, the deposits and investments of the pension trust funds are held separately from those of other funds. Cash on hand of$3,900 has been excluded from the amounts shown below. Permitted Deposits and Investments Statutes authorize the Village to make deposits/invest in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreements to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services and Illinois Funds. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran's loans, obligations of the State of Illinois and its political subdivisions and Illinois insurance company general and separate accounts, mutual funds and equity securities. - 38 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) -- 2. DEPOSITS AND INVESTMENTS (Continued) Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund's share price, the price for which the investment could be sold. Illinois Metropolitan Investment Fund (IMET) is a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from the participating members. IMET is not registered with the SEC as an investment company. Investments in IMET are valued at IMET's share price, the price for which the investment could be sold. a. Deposits At year-end, the carrying amount of the Village's deposits with financial institutions totaled $280,549 and the bank balances totaled $209,643. The bank balance can be categorized as follows: Bank Balances Category 1 Deposits covered by federal depository insurance, or by collateral held by the Village, or its agent, in the Village's name. $ 209,643 Category 2 Deposits covered by collateral held by the pledging financial institution's trust department, or its agent, in the Village's name. - Category 3 Deposits covered by collateral held by the pledging financial institution, or its trust department, or its agent but not in the Village's name, and deposits which are uninsured and uncollateralized. - TOTAL DEPOSITS $ 209,643 - 39 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 2. DEPOSITS AND INVESTMENTS (Continued) b. Investments — The Village's investments are categorized to give an indication of the level of risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the Village's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the Village's name, and uninsured, unregistered investments. Fair Value Category 1 2 3 Totals U.S. government securities $ 1,287,535 $ - $ 5,159,931 $ 6,447,466 U.S. agency securities 3,724,706 - 12,187,696 15,912,402 State and local obligations - - 2,133,878 2,133,878 Negotiable certificates of deposit - - 100,154 100,154 $ 5,012,241 $ - $19,581,659 24,593,900 *Mutual Funds 18,813,975 *Illinois Funds 7,769,687 *Illinois Metropolitan Investment Fund 6,925,523 *Money Market Mutual Funds 911,720 TOTAL INVESTMENTS $59,014,805 *(Not Subject to Custodial Credit Risk Categorization) The pension trust funds own 100% of the investments in Category 3. The above deposits (including cash on hand) of$284,449 and investments of ~ $59,014,805 totaling $59,299,254 are reported in the financial statements as follows: Cash and investments - statement of net assets $15,955,437 Cash and investments - statement of fiduciary net assets 43,343,817 TOTAL $59,299,254 - 40 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 3. PROPERTY TAXES Property taxes for 2004 attach as an enforceable lien on January 1, 2004, on property values assessed as of the same date. Taxes are levied by December 31 of the fiscal year by passage of a Tax Levy Ordinance. Tax bills are prepared by the County and issued on or about May 1, 2005 and August 1, 2005 and are payable in two installments, on or about June 1, 2005 and September 1, 2005. The County collects such taxes and remits them periodically. The Village does not have a tax levy but does receive a share of road and bridge taxes from local Townships. 4. RECEIVABLES The following receivables are included in Other Receivables on the Statement of Net Assets: GOVERNMENTAL ACTIVITIES IRMA excess surplus $ 97,830 State income tax 60,500 Hotel/motel tax 29,245 Grants 112,819 j Reinsurance 355,000 Other miscellaneous 28,775 r. TOTAL GOVERNMENTAL ACTIVITIES $ 684,169 BUSINESS-TYPE ACTIVITIES IRMA excess surplus $ 29,486 Members charges 18,843 Special events 8,261 Other miscellaneous 9,527 TOTAL BUSINESS-TYPE ACTIVITIES $ 66,117 5. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2004 was as follows: Beginning Ending Balance Increases Decreases Balance GOVERNMENTAL ACTIVITIES Capital assets not being depreciated _ Land $ 616,829 $ - $ - $ 616,829 Land right of way 31,687,305 - - 31,687,305 Construction in progress 9,300 586,357 9,300 586,357 Total capital assets not being depreciated 32,313,434 586,357 9,300 32,890,491 s - 41 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 5. CAPITAL ASSETS (Continued) Beginning Ending Balance Increases Decreases Balance GOVERNMENTAL ACTIVITIES(Continued) Capital assets being depreciated Buildings,building and land improvements $18,606,090 $ 72,149 $ - $18,678,239 Computer equipment 828,480 - - 828,480 Other equipment 1,369,730 49,600 - 1,419,330 Vehicles 75,416 - - 75,416 Infrastructure 29,317,787 - - 29,317,787 Internal service fund vehicles 4,127,244 512,917 110,802 4,529,359 Total capital assets being depreciated 54,324,747 634,666 110,802 54,848,611 .� Less accumulated depreciation for Buildings,building and land improvements 2,471,348 397,675 - 2,869,023 Computer equipment 556,753 108,432 - 665,185 Other equipment 628,900 124,950 - 753,850 Vehicles 29,221 19,066 - 48,287 Infrastructure 15,165,276 632,119 - 15,797,395 Internal service fund vehicles 2,473,235 287,093 110,802 2,649,526 Total accumulated depreciation 21,324,733 1,569,335 110,802 22,783,266 Total capital assets being depreciated,net 33,000,014 (934,669) - 32,065,345 GOVERNMENTAL ACTIVITIES CAPITAL ASSETS,NET $65,313,448 $ (348,312) $ 9,300 $64,955,836 BUSINESS-TYPE ACTIVITIES Capital assets not being depreciated Land $ 8,353,918 $ - $ - $ 8,353,918 Construction in progress 90,193 118,066 - 208,259 _ Total capital assets not being depreciated 8,444,111 118,066 - 8,562,177 Capital assets being depreciated Land improvements 2,851,545 - - 2,851,545 Building and building improvements 5,694,794 - - 5,694,794 Infrastructure 15,372,382 - - 15,372,382 Vehicles 14,337 - - 14,337 Machinery and equipment 4,194,918 450,694 294,420 4,351,192 Internal service fund vehicles 322,005 126,943 22,333 426,615 Total capital assets being depreciated 28,449,981 577,637 316,753 28,710,865 Less accumulated depreciation for T Land improvements 1,771,236 76,328 - 1,847,564 Building and building improvements 1,638,917 122,430 - 1,761,347 Infrastructure 5,520,650 241,321 - 5,761,971 Vehicles 6,452 2,031 - 8,483 Machinery and equipment 2,590,245 191,482 294,420 2,487,307 Internal service fund vehicles 156,421 38,399 22,333 172,487 Total accumulated depreciation 11,683,921 671,991 316,753 12,039,159 Total capital assets being depreciated,net 16,766,060 (94,354) - 16,671,706 BUSINESS-TYPE ACTIVITIES CAPITAL ASSETS,NET $25,210,171 $ 23,712 $ - $25,233,883 - 42 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 5. CAPITAL ASSETS (Continued) Depreciation expense was charged to functions of the primary government as follows: GOVERNMENTAL ACTIVITIES General government $ 364,315 — Public safety 286,367 Public works 758,690 Culture and recreation 159,963 TOTAL DEPRECIATION EXPENSE- GOVERNMENTAL ACTIVITIES $ 1,569,335 Construction Contracts The Village has entered into contracts for the construction or renovation of various facilities as follows: Project Expended Authorizations to Date Commitment 2004 Water Main and Drainage $ 148,162 $ 133,734 $ 14,428 York/Harger Bike Trail 567,500 193,824 373,676 2004 paving projects 944,547 850,011 94,536 2004 paving projects 125,155 123,775 1,380 2005 paving projects 127,617 33,790 93,827 TOTALS $ 1,912,981 $ 1,335,134 $ 577,847 6. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; illnesses of employees; and natural disasters. The Village participates in the Intergovernmental Risk Management Agency (IRMA) which is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation's Statute to pool its risk management needs. The Village pays annual premiums to IRMA for its workers' compensation, general liability and property coverage. The Village assumes the first $1,000 of each occurrence, with IRMA having a mix of self- insurance and commercial insurance at various amounts above that level. The Village appoints one delegate, along with an alternate delegate, to represent the Village on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. - 43 - -- VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 6. RISK MANAGEMENT (Continued) The Village, along with IRMA's other members, has a contractual obligation to fund any deficit of IRMA attributable to a membership year during which it was a member. Supplemental contributions may be required to fund these deficits. No such contributions have occurred during the past three years. In addition, the Village provides medical and dental coverage to Village employees, their dependents and retirees through a limited self-insurance program. Through June 30, 2004, the Village was self-insured for the first $65,000 per individual for medical claims up to a maximum limit of$1,910,176 for all individuals. As of July 1, 2004, the Village was self- insured for the first $75,000 per individual for medical claims up to a maximum limit of -- $2,055,497 for all individuals. Commercial insurance is carried for amounts in excess of the self-insured amounts. Settlements did not exceed insurance coverage in any of the last three years. The Village is entirely self-insured for dental claims up to the annual benefit �— limit of$1,000 per individual. The Village's self-insurance activities are reported in the Self-Insurance Fund, an Internal Service Fund. Premiums are paid into the Self-Insurance Fund by the departments of the General Fund and other funds, retirees, and COBRA participants based upon equivalent premium estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Reported liabilities are estimated based on historical cost information and include an amount for claims that have been incurred but not reported. The total claim liability at year end was $427,000. A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2004 2003 1 CLAIMS PAYABLE, BEGINNING OF YEAR $ 225,800 $ 223,031 Claims incurred and changes in estimate 2,094,505 1,361,993 Claims paid (1,893,305) (1,359,224) CLAIMS PAYABLE, END OF YEAR $ 427,000 $ 225,800 -44 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT Installment Contract Payable "` The Village has issued four installment contracts payable to provide funds for the acquisition of capital assets. The installment contracts payable currently outstanding are as follows: Fund Debt Balance, Balance, Current Issue Retired by January 1 Issuances Retirements Refundings December 31 Portion General Fund Certificates, _ Series 1999 dated September 24, 1999,4.93% interest bearing contract, due in annual installments _ ranging from$70,000 to $100,000 through September 15,2009, interest payable March 15 and September 15 of each year,secured by sales and Sports use taxes. Core $ 535,000 $ - $ 80,000 $ - $ 455,000 $ 85,000 i General Fund Certificates, Series 2001 dated December 1,2000,interest at 4.625%to 4.701/o,due in j hl annual installments ranging from$190,000 to$370,000 through December 1,2010, interest payable June I and December I of each year, secured by sales and use taxes. General 3,410,000 - 215,000 - 3,195,000 225,000 ,t General Fund Refunding Certificates,Series 2003 dated June 1,2003,interest at 1.50%to 3.20%,due in annual installments ranging from$65,000 to$125,000 through December 1,2012, •r interest payable June 1 and December 1 of each year, secured by sales and use Sports taxes. Core 825,000 75,000 - 750,000 75,000 TOTAL $4,770,000 $ - $ 370,000 $ - $ 4.400,000 $ 385,000 - 45 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Installment Contracts Installment Contracts Fiscal Year Payable from Payable from Enterprise Ending Governmental Activities Fund December 31, Principal Interest Principal Interest 2005 $ 225,000 $ 149,438 $ 160,000 $ 41,531 2006 235,000 139,031 160,000 36,141 2007 250,000 128,162 165,000 30,751 2008 260,000 116,600 195,000 24,814 2009 275,000 104,575 200,000 17,730 2010 285,000 91,650 100,000 10,100 2011 300,000 78,255 100,000 7,100 2012 315,000 64,155 125,000 4,000 2013 330,000 49,350 - - 2014 350,000 33,840 - - 2015 370,000 17,390 - - TOTALS $ 3,195,000 $ 972,446 $ 1,205,000 $ 172,167 -- Change in Long-Term Liabilities During the fiscal year, the following changes occurred in long-term liabilities reported in the governmental activities: Balances Balances Current January 1 Additions Reductions December 31 Portion Installment contracts Payable $ 3,410,000 $ - $ 215,000 $ 3,195,000 $ 225,000 Compensated absences* 814,034 - 45,828 768,206 684,026 Compensated absences Internal Service Fund 10,467 - - 10,467 10,467 TOTAL GOVERNMENTAL ACTIVITIES $ 4,234,501 $ - $ 260,828 $ 3,973,673 $ 919,493 *The compensated absences for governmental activities typically has been liquidated by the General Fund. -46 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 7. LONG-TERM DEBT (Continued) During the fiscal year, the following changes occurred in long-term liabilities reported in the business-type activities: Balances Balances Current January 1 Additions Reductions December 31 Portion Installment contracts payable $ 1,360,000 $ - $ 155,000 $ 1,205,000 $ 160,000 Compensated absences 76,160 - 6,954 69,206 69,206 TOTAL BUSINESS- TYPE ACTIVITIES $ 1,436,160 $ - $ 161,954 $ 1,274,206 $ 229,206 Legal Debt Margin `- 2003 assessed valuation (latest information available) $ 1,327,099,526 Legal debt limit- 8.625% of assessed valuation $ 114,462,334 Amount of debt applicable to debt limit 4,400,000 �. LEGAL DEBT MARGIN $ 110,062,334 8. INTERFUND ACCOUNTS Interfund receivable and payable balances as of December 31, 2004 are as follows: _ Due From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 933,352 The purpose of significant due to/due from other funds are as follows: $933,352 to fund the golf clubhouse expansion, pool deck replacement, engineering and subdivision expenses in Westchester Park and Bath and Tennis Clubhouse expansion. This amount will be repaid when certain land parcels of the Sports Core are sold. Advance From/To Other Funds Receivable Fund Payable Fund Amount General Sports Core $ 1,290,000 The purpose of this amount advanced to the Sports Core Fund from the General Fund is to fund capital projects and operating needs. - 47 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 9. COMMITMENTS DuPage Water Commission The Village is a customer of the DuPage Water Commission and has executed a Water Supply Contract with the Commission for a term ending in 2024. The Contract provides that the government pay its proportionate share of"fixed costs" (debt service and capital costs)to the Commission, such obligation being unconditional and irrevocable whether or not water is ever delivered. These costs are expensed along with the other operation charges from the Commission. Fiscal Year Ending December 31 Amount _ 2005 $ 842,000 2006 842,000 2007 842,000 2008 842,000 2009 842,000 Thereafter 12,630,000 TOTAL $ 16,840,000 These amounts have been calculated using the Village's current allocation percentage. In future years,this allocation percentage will be subject to change. Estimates for the remaining years of the contract are not currently available. However, the Village does not expect the minimum amounts for the remaining years of the contract to materially vary from the amounts presented above. 10. CONTINGENT LIABILITIES Litigation The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney,the resolution of these matters will not have a material adverse effect on the financial condition of the Village. In addition, the Village may become responsible for certain legal costs associated with other lawsuits. It is possible, but not probable, that the Village will become liable for these costs. No liability, therefore, has been recorded on the financial statements for this litigation. - 48 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 10. CONTINGENT LIABILITIES (Continued) Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including r amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at _ this time although the Village expects such amounts, if any, to be immaterial. DuPage Water Commission _ The Village's agreement with the DuPage Water Commission provides that each member is liable for its proportionate share of any cost arising from defaults in payment obligations ... by other members. Municipal Infrastructure Maintenance Fees _ From January 1, 1998 through December 31, 2000, the Village imposed a municipal telecommunications infrastructure maintenance fee (IMF) on persons in the business of transmitting, supplying or furnishing telecommunications and all associated services (e.g., telecommunications retailers) in Illinois for the "use of public right-of-ways". The fee was authorized by state statute (35 ILCS 635). In March 2001, a wireless telecommunications provider brought action against an Illinois government challenging the constitutionality of the municipal telecommunications infrastructure maintenance fee. The Illinois Supreme Court (Court) found the IMF to be unconstitutional as applied to wireless carriers. The " Court's decision held upon appeal. Potential damages to the Village under this case precedent could aggregate the total of amounts remitted to the Village for IMF by all carriers during the period from January 1, 1998 through December 31, 2000. The Village has estimated its liability under potential IMF lawsuits as of December 31, 2004 to be $126,490 and has recorded this in the General Fund. 11. DEFINED BENEFIT PENSION PLANS The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan, which is a single-employer pension plan; and, the Firefighters' _ Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels, employee contributions and employer contributions for all three plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The police and firefighter' pension plans each issue separate financial statements. These reports can be obtained from the Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, Illinois 60523-2255. IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. - 49 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions Illinois Municipal Retirement Fund All employees (other than those covered by the Police or Firefighters' plans) 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. Participating 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 12/3% of their final rate of earnings, for each year of credited service up to 15 years, and 2.00% 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 4.50% of their annual salary to IMRF. The Village is required to contribute the remaining _ amounts necessary to fund the IMRF as specified by statute. The employer contribution for the year ended December 31, 2004 was 8.77% of covered payroll. Police Pension Plan Police sworn personnel are covered by the Police Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2004, the Police Pension Plan membership consisted of. Retirees and beneficiaries currently receiving benefits 28 Terminated employees entitled to benefits but not yet receiving them - Current employees Vested 22 Nonvested 20 TOTAL 70 The Police Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years — of creditable service are entitled to receive an annual retirement benefit equal to one- half of the salary attached to the rank held on the last day of service, or for one year prior to the last day, whichever is greater. The annual benefit shall be increased by 2.00% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75.00% of such salary. Employees with at least eight years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. The monthly benefit of a police officer who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55 years, by 3.00% of the original pension and 3.00% compounded annually each January 1 thereafter. - 50 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) _ 11. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) — Police Pension Plan(Continued) Employees are required by ILCS to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until the year 2033 to fully fund the past service cost for the Police Pension Plan. For the year ended December 31, 2004, the Village's contribution was 16.46% of covered payroll. Firefighters' Pension Plan Fire sworn personnel are covered by the Firefighters' Pension Plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2004,the Firefighters' Pension Plan membership consisted of. Retirees and beneficiaries currently receiving benefits 34 Terminated employees entitled to benefits but not yet receiving them - _ Current employees Vested 19 Nonvested 14 _ TOTAL 67 The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the monthly salary attached to the rank held in the fire service at the date of retirement. The monthly pension shall be increased by 1/12 of 2.50% of such monthly salary for each additional month over 20 years of service through 30 years of — service to a maximum of 75.00% of such monthly salary. Employees with at least ten years but less than 20 years of credited service may retire at or after age 60 and J receive a reduced retirement benefit. The monthly pension of a covered employee who retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the first anniversary date of retirement and paid upon reaching — the age of at least 55 by 3.00% of the original pension and 3.00% compounded each January 1 thereafter. - 51 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) a. Plan Descriptions (Continued) Firefighters' Pension Plan (Continued) Covered employees are required to contribute 8.455% (9.455% effective July 1, 2004) of their base salary to the Firefighters' 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 finance the plan as actuarially determined by an enrolled actuary. Effective July 1, 1993, the Village has until the year 2033 to fully fund the past services costs for the Firefighters' Pension Plan. For the year ended December 31, 2004,the Village's contribution was 21.80% of covered payroll. b. Significant Investments The following are investments (other than U.S. Government guaranteed obligations) in any one organization that represent 5.00% or more of plan net assets for either the Police or the Firefighters' Pension Plans. Information for the IMRF is not available. Plan Organization Amount Police Pension Federal Farm Credit Bureau $ 1,266,413 Police Pension Vanguard Institutional Index Fund 4,056,748 $ 5,323,161 Firefighters' Pension Alger Mid Cap Growth Fund $ 978,833 Firefighters' Pension American Growth Fund 1,153,418 — Firefighters' Pension Davis NY Venture Fund 1,136,841 Firefighters' Pension Pimco PEA Value Fund 1,130,173 Firefighters' Pension Scudder High Return Fund 1,149,566 $ 5,548,831 - 52 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) — 11. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs Employer contributions have been determined as follows: Illinois Municipal Police Firefighters' Retirement Pension Pension Actuarial valuation date December 31, January 1, January 1, 2002 2004 2004 Actuarial cost method Entry-age Entry-age Entry-age Normal Normal Normal Asset valuation method 5 Year Market Market Smoothed _ Market Amortization method Level Level Level Percentage of Percentage of Percentage of Payroll Payroll Payroll Amortization period 10 Years, 29 Years, 29 Years, Closed Closed Closed Significant actuarial assumptions — a) Rate of return on 7.50% 7.25% 7.50% present and future assets Compounded Compounded Compounded Annually Annually Annually b) Projected salary increase- 4.00% 5.25% 5.25% attributable to inflation Compounded Compounded Compounded — Annually Annually Annually c) Additional projected .40 to 11.60% Not Available Not Available _ salary increases - seniority/merit - 53 - VILLAGE OF OAK BROOK, ILLINOIS NOTES TO FINANCIAL STATEMENTS (Continued) 11. DEFINED BENEFIT PENSION PLANS (Continued) C. Annual Pension Costs (Continued) Employer annual required contributions (ARC), actual contributions and the net pension obligation (NPO) (asset) are as follows. The NPO (asset) is the cumulative difference between the annual pension costs and the contributions actually made. Illinois Calendar Municipal Calendar Police Firefighters' Year Retirement Year Pension Pension Annual required contribution(ARC) 2002 $ 346,663 2002 $ 338,565 $ 417,022 2003 395,206 2003 483,197 481,887 2004 500,558 2004 449,652 490,612 Actual contribution 2002 $ 346,663 2002 $ 338,565 $ 417,022 _ 2003 395,206 2003 483,197 481,887 2004 500,558 2004 449,652 490,612 Percentage of ARC 2002 100.00% 2002 100.00% 100.00% —" contributed 2003 100.00 2003 100.00 100.00 2004 100.00 2004 100.00 100.00 NPO (Asset) 2002 $ - 2002 $ - $ - 2003 - 2003 - - 2004 - 2004 - - - 54 - i i i i i t VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual REVENUES Intergovernmental $ 11,054,000 $ 11,054,000 $ 11,401,599 $ 347,599 $ 10,583,318 Utility taxes 3,977,200 3,977,200 3,638,052 (339,148) 3,427,393 Licenses and permits 560,800 560,800 741,528 180,728 570,261 Charges for services 631,100 631,100 745,027 113,927 703,634 Fines and penalties 436,400 436,400 401,616 (34,784) 353,513 Investment income 200,000 200,000 71,442 (128,558) 118,411 Donations 90,000 90,000 - (90,000) 410,000 Miscellaneous 156,210 156,210 176,630 20,420 228,477 Total revenues 17,105,710 17,105,710 17,175,894 70,184 16,395,007 EXPENDITURES Current General government 5,146,365 5,202,960 5,144,466 (58,494) 5,921,350 Public safety 9,458,270 9,606,140 9,572,845 (33,295) 9,488,880 Public works 1,228,055 1,173,140 1,131,843 (41,297) 1,160,946 Culture and recreation 1,204,500 1,181,440 1,177,862 (3,578) 1,165,118 Total expenditures 17,037,190 17,163,680 17,027,016 (136,664) 17,736,294 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 68,520 (57,970) 148,878 206,848 (1,341,287) OTHER FINANCING SOURCES(USES) Transfers in - - - - 200,000 Total other financing sources(uses) - - - - 200,000 NET CHANGE IN FUND BALANCE $ 68,520 $ (57,970) 148,878 $ 206,848 (1,141,287) FUND BALANCE,JANUARY 1 11,093,102 11,622,582 Prior period adjustment - 611,807 FUND BALANCE,JANUARY 1, RESTATED 11,093,102 12,234,389 FUND BALANCE,DECEMBER 31 $ 11,241,980 $ 11,093,102 (See independent auditor's report.) -55- VILLAGE OF OAK BROOK, ILLINOIS _ NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2004 Budgets Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets are adopted for the General, Special Revenue and Capital Projects Funds on the modified accrual basis, and Enterprise, Internal Service and Pension Trust Funds on the accrual — basis and a current financial resources measurement focus. The annual budget is legally enacted and provides for a legal level of control at the program level. All annual appropriations lapse at fiscal year end. — The Village follows these procedures in establishing the budgetary data reflected in the financial statements: _ 1. All departments of the Village submit budget requests to the Village Manager so that a budget may be prepared. ` 2. The Village Manager submits to the Village Board of Trustees a proposed operating budget _ for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 3. A public hearing is conducted by the Village to obtain taxpayer comments. — 4. Subsequently, the budget is adopted by the Village Board. _ 5. Annual budgets are adopted for all funds on a basis consistent with generally accepted accounting principles. _ 6. Formal budgetary integration is employed as a management control device during the year for all funds of the Village. _ 7. Appropriations lapse at year end. 8. The Village Manager and Budget Officer are authorized to transfer budgeted amounts between line items within any program; however, any revisions that alter the total expenditures of any program or fund must be approved by the Village Board. The level of _ legal control is the individual program budget in total. 9. Budgeted amounts are as originally adopted with the exceptions of approved transfers which were not material in relation to the budgets taken as a whole. After Village Board transfers, no program had an excess of expenditures/expenses, exclusive of depreciation and amortization over budget for the fiscal year. - - 56 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS ILLINOIS MUNICIPAL RETIREMENT FUND — December 31, 2004 (4) Unfunded (2) (Overfunded) URAL Actuarial Actuarial (OAAL) Accrued Accrued As a Actuarial (1) Liability (3) Liability Percentage Valuation Actuarial (AAL) Funded (URAL) (5) of Covered Date Value of Entry Age Ratio (OAAL) Covered Payroll December 31, Assets Normal (1) /(2) (2) - (1) Payroll (4) /(5) — 1999 $ 8,117,918 $ 7,701,764 105.40% $ (416,154) $ 4,129,559 (10.08%) 2000 9,739,416 8,934,915 109.00% (804,501) 4,636,007 (17.35%) 2001 10,663,509 9,939,211 107.29% (724,298) 4,967,579 (14.58%) — 2002 11,189,319 11,194,278 99.96% 4,959 5,228,707 0.09% 2003 11,079,395 12,017,899 92.19% 938,504 5,589,904 16.79% 2004 10,795,206 12,381,519 87.19% 1,586,313 5,707,616 27.79% (See independent auditor's report.) - 57 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS POLICE PENSION FUND December 31, 2004 (2) UAAL Actuarial (4) As a Actuarial (1) Accrued (3) Unfunded Percentage Valuation Actuarial Liability Funded AAL (5) of Covered Date Value of (AAL) Ratio (UAAL) Covered Payroll December 31, Assets -Entry Age (1)/(2) (2) - (1) Payroll (4)/(5) 1999 $ 19,542,081 $ 18,564,949 105.26% $ (977,132) $2,172,484 (44.98%) 2000 20,448,157 20,140,332 101.53% (307,825) 2,249,998 (13.68%) 2001 20.496,069 21,849,564 93.81% 1,353,495 2,616,001 51.74% 2002 20,521,085 23,581,098 87.02% 3,060,013 2,736,034 111.84% 2003 22,790,550 25,499,316 89.38% 2,708,766 2,854,299 94.90% 2004 24,157,442 27,106,938 89.12% 2,949,496 2,808,631 105.02% (See independent auditor's report.) - 58 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS FIREFIGHTERS'PENSION FUND �- December 31, 2004 — (4) UAAL (2) Unfunded (OAAL) Actuarial (Overfunded) As a Actuarial (1) Accrued (3) AAL Percentage Valuation Actuarial Liability Funded (URAL) (5) of Covered Date Value of (AAL) Ratio (OAAL) Covered Payroll December 31, Assets - Entry Age (1) /(2) (2) - (1) Payroll (4)/(5) 1999 $18,203,403 $18,051,091 100.84% $ (152,312) $ 1,788,993 (8.51%) 2000 18,050,631 18,772,810 96.15% 722,179 1,887,874 38.25% 2001 17,487,246 19,819,493 88.23% 2,332,247 2,144,046 108.78% 2002 16,240,617 20,878,039 77.79% 4,637,422 2,222,646 208.64% 2003 18,254,770 22,439,963 81.35% 4,185,193 2,156,811 194.05% 2004 19,395,277 24,131,120 80.37% 4,735,843 2,298,601 206.03% — (See independent auditor's report.) - 59 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS ILLINOIS MUNICIPAL RETIREMENT FUND December 31, 2004 Annual _. Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 1999 $ 349,773 $ 349,773 100.00% ._ 2000 343,528 343,528 100.00% 2001 359,653 359,653 100.00% 2002 346,663 346,663 100.00% 2003 395,206 395,206 100.00% 2004 500,558 500,558 100.00% (See independent auditor's report.) - 60 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS POLICE PENSION FUND December 31, 2004 Annual Fiscal Required Year Employer Contribution Percentage December 31, Contributions (ARC) Contributed 1999 $ 69,674 $ 69,674 100.00% 2000 218,523 218,523 100.00% 2001 271,765 271,765 100.00% 2002 338,565 338,565 100.00% 2003 483,197 483,197 100.00% 2004 449,652 449,652 100.00% (See independent auditor's report.) - 61 - VILLAGE OF OAK BROOK, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS FIREFIGHTERS' PENSION FUND — December 31, 2004 Annual Fiscal Required Year Employer Contribution Percentage _ December 31, Contributions (ARC) Contributed 1999 $ 71,334 $ 71,334 100.00% _ 2000 299,044 299,044 100.00% 2001 357,168 357,168 100.00% 2002 417,022 417,022 100.00% — 2003 481,887 481,887 100.00% 2004 490,612 490,612 100.00% (See independent auditor's report.) - 62 - t VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF REVENUES-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 -� Budget Budget Actual (Under) Actual REVENUES Intergovernmental Municipal sales tax $ 10,225,000 $ 10,225,000 $ 10,529,690 $ 304,690 $ 9,749,858 Illinois state income and use tax 615,000 615,000 644,783 29,783 614,678 Corporate personal property replacement taxes 162,000 162,000 187,252 25,252 167,291 York Township road and bridge tax 52,000 52,000 36,100 (15,900) 49,682 Grants - - 3,774 3,774 1,809 Total intergovernmental 11,054,000 11,054,000 11,401,599 347,599 10,583,318 Utility taxes 3,977,200 3,977,200 3,638,052 (339,148) 3,427,393 Licenses and permits 560,800 560,800 741,528 180,728 570,261 Charges for services 631,100 631,100 745,027 113,927 703,634 Fines and penalties 436,400 436,400 401,616 (34,784) 353,513 Investment income 200,000 200,000 71,442 (128,558) 118,411 Donations 90,000 90,000 - (90,000) 410,000 Miscellaneous Franchise fees 80,000 80,000 89,710 9,710 66,421 Other 76,210 76,210 86,920 10,710 162,056 Total miscellaneous 156,210 156,210 176,630 20,420 228,477 TOTAL REVENUES $ 17,105,710 $ 17,105,710 $ 17,175,894 $ 70,184 $ 16,395,007 (See independent auditor's report.) -63 - VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND "! SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL For the Year Ended December 31,2004 r` (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual GENERAL GOVERNMENT Legislative and general management .+ Board of trustees Personnel $ 77,580 $ 77,580 $ 76,168 $ (1,412) $ 73,160 Materials and supplies 4,275 4,275 2,216 (2,059) 2,284 Operation and contractual 50,300 180,390 183,853 3,463 62,947 rs Total board of trustees 132,155 262,245 262,237 (8) 138,391 Village clerk Personnel 157,265 160,855 157,899 (2,956) 139,836 Materials and supplies 1,340 1,340 1,101 (239) 2,920 Operation and contractual 17,365 21,800 19,228 (2,572) 25,721 'T Total Village clerk 175,970 183,995 178,228 (5,767) 168,477 Legal Personnel 22,775 22,775 18,019 (4,756) 123,331 Materials and supplies 2,100 2,100 161 (1,939) 1,065 Operation and contractual 200,160 244,760 251,452 6,692 129,520 Total legal 225,035 269,635 269,632 (3) 253,916 General management Personnel 322,435 322,435 324,114 1,679 257,211 Materials and supplies 2,390 2,390 1,704 (686) 1,774 Operation and contractual 7,365 3,765 1,793 (1,972) 9,562 Capital - - - - 23,900 Total general management 332,190 328,590 327,611 (979) 292,447 Human resources Personnel 78,255 78,255 83,123 4,868 69,587 Materials and supplies 1,550 1,550 2,037 487 2,166 Operation and contractual 65,700 117,175 111,820 (5,355) 121,455 Total human resources 145,505 196,980 196,980 - 193,208 ...� Risk management Personnel 46,635 46,635 50,169 3,534 37,342 Operation and contractual 568,500 488,730 481,950 (6,780) 473,179 �. Total risk management 615,135 535,365 532,119 (3,246) 510,521 Emergency management Personnel 12,265 2,805 1,546 (1,259) 2,199 Materials and supplies 2,700 1,700 11 (1,689) 2,092 Operation and contractual 1,500 1,500 - (1,500) 40 Capital 6,000 2,000 341 (1,659) 2,431 Total emergency management 22,465 8,005 1,898 (6,107) 6,762 (This schedule is continued on the following pages.) -64- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual GENERAL GOVERNMENT(Continued) Legislative and general management(Continued) General services Personnel $ 63,540 $ 63,540 $ 62,368 $ (1,172) $ 60,177 Materials and supplies 62,325 62,325 49,789 (12,536) 55,872 Operation and contractual 153,500 160,980 174,728 13,748 211,540 Capital 5,000 - (42) (42) 25,605 Total general services 284,365 286,845 286,843 (2) 353,194 Purchasing Personnel 124,705 125,570 126,064 494 117,109 Materials and supplies 1,340 1,845 1,421 (424) 1,342 Operation and contractual 70 70 - (70) 818 Total purchasing 126,115 127,485 127,485 - 119,269 Information systems Personnel 348,580 348,680 351,173 2,493 318,065 Materials and supplies 13,150 12,290 11,691 (599) 17,310 Operation and contractual 67,735 74,225 64,636 (9,589) 71,714 Capital 62,500 55,400 61,333 5,933 107,879 _ Total information systems 491,965 490,595 488,833 (1.762) 514,968 Village communications center Personnel 653,645 653,645 657,489 3,844 636,513 -- Materials and supplies 13,525 13,525 8,340 (5,185) 11,544 Operation and contractual 22,340 20,540 21,551 1,011 24,412 Capital 31,500 29,020 21,142 (7,878) 359364 Total Village communications center 721,010 716,730 708,522 (8,208) 707,833 Community events Operation and contractual 110,000 88,310 88.309 (1) 147,208 Total community events 110,000 88,310 88,309 (1) 147,208 Total legislative and general management 3381,910 1494,780 3,468,697 (26,083) 3,406,194 Community development management Personnel 211,515 212,215 211,780 (435) 205,312 Materials and supplies 875 1,175 994 (181) 895 Operation and contractual 1,000 - - - 216 Total community development management 213,390 213,390 212,774 (616) 206,423 (This schedule is continued on the following pages.) -65- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 - Budget Budget Actual (Under) Actual GENERAL GOVERNMENT(Continued) Community development management(Continued) - Code enforcement Personnel $ 271,465 $ 271,465 $ 270,039 $ (1,426) $ 272,548 Materials and supplies 1,700 1,700 1,464 (236) 1,488 Operation and contractual 26,290 26,290 27,155 865 34,665 Total code enforcement 299,455 299,455 298,658 (797) 308,701 Total community development 512,845 512,845 511,432 (1,413) 515,124 Financial services Financial services management Personnel 137,220 142,220 142,495 275 133,486 .•� Materials and supplies 1,400 1,400 779 (621) 3,135 Operation and contractual 31,560 32,360 32,677 317 32,215 Total financial services management 170,180 175,980 175,951 (29) 168,836 Accounting and reporting Personnel 333,085 310,685 310,655 (30) 315,778 Materials and supplies 7,400 6,890 5,145 (1,745) 5,998 Operation and contractual 26,970 21,170 18,675 (2,495) 31,862 '~ Total accounting and reporting 367,455 338,745 334,475 (4,270) 353,638 Debt service " Operation and contractual 374,985 374,985 374,981 (4) 374,463 Total debt service 374,985 374,985 374,981 (4) 374,463 --z Total financial services 912,620 889,710 885,407 (4,303) 896,937 Engineering and capital projects Engineering Personnel 368,630 368,630 365,333 (3,297) 337,027 Materials and supplies 8,255 8,255 1,910 (6,345) 1,948 Operation and contractual 39,905 26,540 16,522 (10,018) 14,780 Total engineering 416,790 403,425 383,765 (19,660) 353,755 Municipal building improvements Operation and contractual 10,000 8,445 1,413 (7,032) 8,673 ^ Capital 41,000 12,185 12,184 (1) 57,964 Total municipal building improvements 51,000 20,630 13,597 (7,033) 66,637 Library building project Operation and contractual - - - - 2,643 Capital - - - - 35,673 Total library building project - - - - 38,316 (This schedule is continued on the following pages.) -66- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual GENERAL GOVERNMENT(Continued) Engineering and capital projects(Continued) Municipal complex project Operation and contractual $ $ $ $ $ 37,025 Capital - 10,370 10,368 (2) 659,562 Total municipal complex project - 10,370 10,368 (2) 696,587 Total engineering and capital projects 467,790 434,425 407,730 (26,695) 1,155,295 Reimbursement of Sports Core expenditures 101,000 101,000 101,000 - 145,800 Subtotal general government 5,376,165 5,432,760 5,374,266 (58,494) 6,119,350 Less reimbursements from other funds (229,800) (229,800) (229,800) (198,000) Total general government 5,146,365 5,202,960 5,144,466 (58,494) 5,921,350 PUBLIC SAFETY Police Department Police services management Personnel 479,245 572,595 572,593 (2) 475,504 Materials and supplies 4,100 4,100 2,878 (1,222) 3,268 �. Operation and contractual 48,475 41840 41,627 (1,213) 46,591 Total police services management 531,820 619,535 617,098 (2,437) 525,363 Police field services Personnel 3,031,255 3,242,970 3,242,967 (3) 2,979,742 Materials and supplies 58,650 59,140 66,906 7,766 48,304 Operation and contractual 191,320 193,120 185,351 (7,769) 190,354 -- Capital - 40,300 40,300 - 150,980 Total police field services 3,281,225 3,535,530 3,535,524 (6) 3,369,380 Police general support Personnel 185,860 141,885 141,559 (326) 265,480 Materials and supplies 19,450 21,200 21,139 (61) 16,181 Operation and contractual 1,625 1,625 1,605 (20) 1,088 Capital 10,350 3,605 3,605 - - Total police general support 217,285 168,315 167,908 (407) 282,749 Police investigations Personnel 590,525 527,925 527,922 (3) 548,276 Materials and supplies 11,650 8,690 7,614 (1,076) 6,735 Operation and contractual 24,050 20,520 20,519 (1) 27,149 Total police investigations 626,225 557,135 556,055 (1,080) 582,160 (This schedule is continued on the following pages.) -67- VILLAGE OF OAK BROOK,ILLINOIS GENERALFUND ^ SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual PUBLIC SAFETY(Continued) Police Department(Continued) Police records Personnel $ 150,610 $ 140,745 $ 139,606 $ (1,139) $ 139,755 Materials and supplies 5,600 7,000 7,135 135 5,141 Operation and contractual 7,000 5,505 5,501 (4) 5,066 ..� Total police records 163,210 153,250 152,242 (1,008) 149,962 Public relations/crime prevention .•t Personnel 172,145 95,055 93,531 (1,524) 145,097 Materials and supplies 4,100 4,100 2,577 (1,523) 1,580 Operation and contractual 6,530 3,030 2,185 (845) 7,883 Total public relations/crime prevention 182,775 102,185 98,293 (3,892) 154,560 Total police department 5,002,540 5,135,950 5,127,120 (8,830) 5,064,174 Fire Fire and EMS general salaries Personnel 3,185,130 3,229,910 3,228,690 (1,220) 3,132,676 Total fire and EMS general salaries 3,185,130 3,229,910 3,228,690 (1,220) 3,132,676 Fire service management Personnel 321,775 329,155 329,155 - 303,508 Materials and supplies 2,750 3,350 2,375 (975) 3,152 Operation and contractual 5,665 5,665 5,560 (105) 7,669 Total fire service management 330,190 338.170 337,090 (1,080) 314,329 Rescue and fire operation Personnel 3,375 3,375 6,111 2,736 4,931 Materials and supplies 57,660 47,860 86,641 38,781 73,176 Operation and contractual 128,825 126,825 121,573 (5,252) 103,760 Capital 46,000 53,505 1,226 (52,279) 48,143 Total rescue and fire operation 235,860 231,565 215,551 (16,014) 230,010 Special teams operations Personnel 30 30 - (30) 29 a.. Materials and supplies 12,500 9,860 10,362 502 6,423 Operation and contractual 3,625 3,625 3,152 (473) 5,046 Total special teams operations 16,155 13,515 13,514 (1) 11,498 Rescue and fire training Personnel 25,125 18,125 17,782 (343) 32,504 Materials and supplies 1,460 1,100 530 (570) 752 "v Total rescue and fire training 26,585 19,225 18,312 (913) 33,256 rr (This schedule is continued on the following pages.) -68- VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual PUBLIC SAFETY(Continued) Fire(Continued) Emergency medical services Personnel $ 49,180 $ 45,180 $ 45,568 $ 388 $ 42,231 Materials and supplies 13,505 13,505 11,211 (2,294) 12,421 Operation and contractual 406,665 406,665 408,345 1,680 394,948 Capital - - - - 59,913 Total emergency medical services 469,350 465,350 465,124 (226) 509,513 Prevention and public education _ Personnel 179,080 159,075 156,350 (2,725) 149,949 Materials and supplies 3,950 3,950 1,969 (1,981) 3,792 Operation and contractual 9,430 9,430 9.125 (305) 39.683 Total prevention and public education 192,460 172,455 167.444 (5.011) 193.424 Total fire 4,455,730 4.470,190 4,445,725 (24,465) 4,424,706 Total public safety 9,458,270 9.606,140 9,572.845 (33,295) 9,488,880 PUBLIC WORKS Public works management Personnel 302,390 303,335 307,110 3,775 289,241 Materials and supplies 4,185 4,370 3,734 (636) 1,553 Operation and contractual 12,860 12,860 9.715 (3,145) 10,544 Total public works management 319,435 320,565 320,559 (6) 301,338 Mosquito control Operation and contractual - - - - 61,332 Total mosquito control - - - - 61,332 Buildings and grounds Personnel 74,760 67,105 66,498 (607) 72,365 Materials and supplies 27,310 26,835 24,083 (21,752) 27,329 Operation and contractual 213,550 195,550 167,619 (27,931) 174,809 Total buildings and grounds 315,620 289,490 258,200 (31,290) 274.503 Streets-general salaries _ Personnel 586,260 586,260 583,001 (3,259) 554,949 Materials and supplies 6,420 6,420 3,207 (3,213) 3,047 Operation and contractual 2,860 2,860 2,326 (534) 2,330 Total streets-general salaries 595,540 595,540 588,534 (7,006) 560,326 (This schedule is continued on the following page.) -69- .r VILLAGE OF OAK BROOK,ILLINOIS GENERAL FUND '~ SCHEDULE OF EXPENDITURES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 s.e (With Comparative Actual) w 2004 Variance Original Final Over 2003 ,. Budget Budget Actual (Under) Actual PUBLIC WORKS(Continued) Snow removal Personnel $ 49,925 $ 34,550 $ 31,608 $ (2,942) $ 31,621 Materials and supplies 49,960 41,420 41,367 (53) 28,491 Operation and contractual 25,625 19,625 19,625 - 23,235 ra Total snow removal 125,510 95,595 92,600 (2,995) 83,347 Subtotal public works 1,356,105 1,301,190 1,259,893 (41,297) 1,280,846 Less reimbursements from other funds (128,050) (128,050) (128,050) - (119,900) Total public works 1,228,055 1,173,140 1,131,843 (41,297) 1,160,946 CULTURE AND RECREATION Library general operations Personnel 355,845 323,045 311,184 (11,861) 353,222 Materials and supplies 23,780 24,580 21,602 (2,978) 25,408 Operation and contractual 134,485 134,485 110,553 (23,932) 126,223 Capital 15,000 23,940 62,711 38,771 13,319 Total library general operations 529,110 506,050 506,050 - 518,172 Library technical services Personnel 151,505 151,505 150,668 (837) 139,703 Materials and supplies 6,345 6,345 6,020 (325) 6,409 Operation and contractual 7,500 7,500 7,553 53 7,791 Total library technical services 165,350 165,350 164,241 (1,109) 153,903 Library reference and adult services Personnel 151,235 151,160 150,036 (1,124) 136,685 Materials and supplies 127,450 127,450 126,577 (873) 131,030 Operation and contractual 7,850 7,850 7,381 (469) 5,829 Total library reference and adult services 286,535 286,460 283,994 (2,466) 273,544 Library youth services Personnel 170,380 170,455 170,474 19 159,364 _ Materials and supplies 46,400 46,400 46,383 (17) 53,431 Operation and contractual 6,725 6,725 6,720 (5) 6,704 i Total library youth services 223,505 223,580 223,577 (3) 219,499 Total culture and recreation 1,204,500 1,181,440 1,177,862 (3,578) 1,165,118 TOTAL EXPENDITURES $ 17,037,190 $ 17,163,680 $ 17,027,016 $ (136,664) $ 17,736,294 i (See independent auditor's report.) -70- VILLAGE OF OAK BROOK,ILLINOIS INFRASTRUCTURE FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual REVENUES Intergovernmental-grants $ 261,300 $ 261,300 $ 151,203 $ (110,097) $ 62,201 Non-home rule sales tax - - 1,304,467 1,304,467 - Utility taxes 745,000 745,000 660,692 (84,308) 1,072,715 Investment income 26,000 26,000 24,636 (1,364) 24,956 Total revenues 1,032,300 1,032,300 2,140,998 1,108,698 1,159,872 EXPENDITURES Current Public works 664,315 664,315 451,330 (212,985) 466,259 Capital outlay 1,948,985 1,948,985 1,009,984 (939,001) 404,305 Total expenditures 2,613,300 2,613,300 1,461,314 (1,151,986) 870,564 NET CHANGE IN FUND BALANCE $ (1,581,000) $ (1,581,000) 679,684 $ 2,260,684 289,308 FUND BALANCE,JANUARY 1 2,316,583 2,027,275 '— FUND BALANCE,DECEMBER 31 $ 2,996,267 $ 2,316,583 (See independent auditor's report.) -71 - NONMAJOR GOVERNMENTAL FUNDS NONMAJOR GOVERNMENTAL FUNDS Hotel/Motel Tax Fund - to account for local hotel/motel tax receipts restricted for promoting tourism and conventions in the Village. Motor Fuel Tax Fund -to account for State Gasoline Tax Allocations restricted for local roadway program expenditures. Foreign:Fire Insurance Tax Fund- to account for Foreign Fire Insurance tax revenue restricted for the purchase of items for the benefit of the fire department. VILLAGE OF OAK BROOK, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS — COMBINING BALANCE SHEET December 31, 2004 Special Revenue Funds Total — Foreign Fire Nonmajor Hotel/Motel Motor Insurance Governmental Tax Fuel Tax Tax Funds -' ASSETS Cash and investments $ 310,698 $ 437,745 $ 138,085 $ 886,528 Receivables Allotments - 21,434 - 21,434 Accrued interest 165 252 - 417 Other, hotel/motel tax 29,245 - - 29,245 TOTAL ASSETS $ 340,108 $ 459,431 $ 138,085 $ 937,624 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 86,753 $ - $ - $ 86,753 — Total liabilities 86,753 - - 86,753 FUND BALANCES Reserved for maintenance of roadways - 459,431 - 459,431 Reserved for public safety - - 138,085 138,085 Reserved for culture and recreation 253,355 - - 253,355 Total fund balances 253,355 459,431 138,085 850,871 — TOTAL LIABILITIES AND FUND BALANCES $ 340,108 $ 459,431 $ 138,085 $ 937,624 (See independent auditor's report.) - - 72 - VILLAGE OF OAK BROOK, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS _ COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ti For the Year Ended December 31, 2004 Special Revenue Funds Total ' Foreign Fire Nonmajor Hotel/Motel Motor Fuel Insurance Governmental Tax Tax Tax Funds REVENUES _. Intergovernmental $ - $ 248,355 $ 49,645 $ 298,000 Hotel/motel taxes 323,325 - - 323,325 Investment income 3.189 5,577 25 8,791 Total revenues 326,514 253,932 49,670 630,116 EXPENDITURES Current Public safety - - 18,071 18,071 Public works - 440.811 - 440,811 Culture and recreation 385,595 - - 385,595 Total expenditures 385,595 440,811 18.071 844,477 NET CHANGE IN FUND BALANCES (59,081) (186,879) 31,599 (214,361) FUND BALANCES, JANUARY l 312.436 646,310 106.486 1,065,232 FUND BALANCES, DECEMBER 31 $ 253,355 $ 459,431 $ 138,085 $ 850,871 (See independent auditor's report.) - 73 - 004 VILLAGE OF OAK BROOK,ILLINOIS HOTEL/MOTEL FUND 'f SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 ..r Variance Original Final Over 2003 Budget Budget Actual (Under) Actual REVENUES Hotel/motel taxes $ 335,000 $ 335,000 $ 323,325 $ (11,675) $ 306,365 Investment income 5,000 5,000 3,189 (1,811) 5,356 Total revenues 340,000 340,000 326,514 (13,486) 311,721 EXPENDITURES Current Culture and recreation 462,600 462,600 385,595 (77,005) 389.488 Total expenditures 462,600 462,600 385,595 (77,005) 389,488 NET CHANGE IN FUND BALANCE $ (122,600) $ (122,600) (59,081) $ 63,519 (77,767) FUND BALANCE,JANUARY l 312,436 390,203 FUND BALANCE,DECEMBER 31 $ 253,355 $ 312.436 (See independent auditor's report.) -74- VILLAGE OF OAK BROOK,ILLINOIS MOTOR FUEL TAX FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance ._ Original Final Over 2003 Budget Budget Actual (Under) Actual REVENUES Intergovernmental $ 251,500 $ 251,500 $ 248,355 $ (3,145) $ 246,969 Investment income 5,000 5,000 5,577 577 9,361 Total revenues 256,500 256,500 253,932 (2,568) 256,330 EXPENDITURES Current Public works 643,000 643,000 440,811 (202,189) 279,743 Total expenditures 643,000 643,000 440,811 (202,189) 279,743 NET CHANGE IN FUND BALANCE $ (386,500) $ (386,500) (186,879) $ 199,621 (23,413) FUND BALANCE,JANUARY 1 646,310 669,723 FUND BALANCE,DECEMBER 31 $ 459,431 $ 646,310 (See independent auditor's report.) -75- VILLAGE OF OAK BROOK,ILLINOIS FOREIGN FIRE INSURANCE FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 _ Variance Original Final Over 2003 Budget Budget Actual (Under) Actual REVENUES Intergovernmental $ 317100 $ 31,100 $ 49,645 $ 18,545 $ 51,278 Investment income 500 500 25 (475) 398 Total revenues 31,600 31,600 49,670 18,070 51,676 EXPENDITURES Current Public safety 42,600 42,600 18,071 (24,529) 48,574 Total expenditures 42,600 42,600 18,071 (24,529) 48,574 NET CHANGE IN FUND BALANCE $ (11,000) $ (11,000) 31,599 $ 42,599 3,102 FUND BALANCE,JANUARY 1 106,486 103,384 FUND BALANCE,DECEMBER 31 $ 138,085 $ 106,486 (See independent auditor's report.) - -76- PROPRIETARY FUNDS MAJOR ENTERPRISE FUNDS VILLAGE OF OAK BROOK,ILLINOIS WATERWORKS SYSTEM FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL rft For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual OPERATING REVENUES Charges for services Water sales $ 4,249,000 $ 4,249,000 $ 3,830,751 $ (418,249) $ 3,567,471 Unmetered sales 30,000 30,000 28,850 (1,150) 28,953 Water tap on charges 50,000 50,000 62,790 12,790 64,930 Fire service charges - - 9,486 9,486 - Meter fees and special services 29,500 29,500 34,709 5,209 24,779 Miscellaneous 50,000 50,000 48,392 (1,608) 68,226 Total operating revenues 4,408,500 4,408,500 4,014,978 (393,522) 3,754,359 OPERATING EXPENSES Operation of facilities 5,425,225 5,425,225 3,810,475 (1,614,750) 4,947,282 Depreciation and amortization - - 435,810 435,810 430,460 Total operating expenses 5,425,225 5,425,225 4,246,285 (1,178,940) 5,377,742 r OPERATING INCOME(LOSS) (1,016,725) (1,016,725) (231,307) 785,418 (1,623,383) NONOPERATING REVENUES ,. (EXPENSES) Investment income 43,000 43,000 30,009 (12,991) 48,868 Loss on sale of fixed assets - - - - (5,283) Total nonoperating revenues (expenses) 43,000 43,000 30,009 (12,991) 43,585 CHANGE IN NET ASSETS $ (973,725) $ (971725) (201,298) $ 772,427 (1,579,798) NET ASSETS,JANUARY 1 16,023,329 15,596,058 Prior period adjustment - 2,007,069 NET ASSETS,JANUARY 1, ..� RESTATED 16,023,329 17,603,127 NET ASSETS,DECEMBER 31 $ 15,822,031 $ 16,023,329 ..r (See independent auditor's report.) - 77- _ VILLAGE OF OAK BROOK,ILLINOIS WATERWORKS SYSTEM FUND —' SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual OPERATING EXPENSES EXCLUDING DEPRECIATION Operation of facilities Public works-water operations Personnel $ 566,175 $ 564,820 $ 566,354 $ 1,534 $ 529,544 Materials and supplies 94,350 94,655 204,163 109,508 80,270 Operation and contractual 3,305,200 3,306,250 2,714,958 (591,292) 4,127,912 Reimbursements for general fund services 325,000 325,000 325,000 - 286,000 Total public works-water operations 4,290.725 4,290,725 3,810,475 (480,250) 5,023,726 Capital improvements Capital outlay 1,134,500 1,134,500 494,258 (640,242) 58,576 Total capital improvements 1,134,500 1,134,500 494,258 (640,242) 58,576 TOTAL OPERATING EXPENSES EXCLUDING DEPRECIATION- BUDGETARY BASIS $ 5,425,225 $ 5,425,225 4,304,733 $ (1,120,492) 5,082,302 ADJUSTMENTS TO GAAP BASIS Capital expenditures (494,258) (135,020) Depreciation expense 366,950 361,600 Amortization expense 68,860 68,860 Total adjustments to GAAP basis (58,448) 295,440 TOTAL OPERATING EXPENSES $ 4,246.285 $ 5,377,742 (See independent auditor's report.) -78- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL '"► For the Year Ended December 31,2004 (With Comparative Actual) ,,t 2004 •s Variance Original Final Over 2003 Budget Budget Actual (Under) Actual •� OPERATING REVENUES Charges for services ,w Golf $ 2,186,710 $ 2,186,710 $ 2,125,578 $ (61,132) $ 2,063,144 Bath and tennis 326,215 326,215 306,720 (19,495) 303,701 Food and beverage 1,282,505 1,282,505 886,296 (396,209) 1,191,116 Total operating revenues 3,795,430 3,795,430 3,318,594 (476,836) 3,557,961 OPERATING EXPENSES Golf club 1,480,690 1,525,820 1,504,713 (21,107) 1,352,858 Bath and tennis 953,145 908,015 565,042 (342,973) 797,040 Food and beverage 1,231,965 1,231,965 979,258 (252,707) 1,292,830 Depreciation - - 266,641 266,641 240,689 Total operating expenses 3,665,800 3,665,800 3,315,654 (350,146) 3,683,417 OPERATING INCOME(LOSS) 129,630 129,630 2,940 (126,690) (125,456) NONOPERATING REVENUES (EXPENSES) Investment income 5,000 5,000 2,444 (2,556) 2,653 Interest expense (201,650) (201,650) (45,384) 156,266 (55,768) Gain on sale of capital assets - - - - 621,753 •► Total nonoperating revenues (expenses) (196,650) (196,650) (42,940) 153,710 568,638 +a CHANGE IN NET ASSETS $ (67,020) $ (67,020) (40,000) $ 27,020 443,182 NET ASSETS,JANUARY 1 10,298,766 10,102,570 Prior period adjustment - (246,986) NET ASSETS,JANUARY 1, RESTATED 10,298,766 9,855.584 NET ASSETS,DECEMBER 31 $ 10,258,766 S 10,298,766 (See independent auditor's report.) -79- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING REVENUES-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual CHARGES FOR SERVICES Golf Fees $ 1,613,860 $ 1,613,860 $ 1,542,201 $ (71,659) $ 1,500,807 Golf surcharge 70,500 70,500 66,633 (3,867) 68,507 Memberships 320,700 320,700 302,425 (18,275) 295,553 Merchandise sales 181,650 181,650 214,319 32,669 191,321 Miscellaneous - - - - 6,956 Total golf 2,186,710 2,186,710 2,125,578 (61,132) 2,063,144 Bath and tennis _ Fees 111,350 111,350 112,772 1,422 111,277 Memberships 206,765 206,765 192,865 (13,900) 177,005 Merchandise sales 3,200 3,200 794 (2,406) 3,861 Miscellaneous 4,900 4,900 289 (4,611) 11,558 Total bath and tennis 326,215 326,215 306,720 (19,495) 303,701 Food and beverage Food sales 822,570 822,570 508,429 (314,141) 761,357 Beverage sales 370,435 370,435 313,541 (56,894) 341,908 Miscellaneous 89,500 89,500 64,326 (25,174) 87,851 Total food and beverage 1,282,505 1,282,505 886,296 (396,209) 1,191,116 _ TOTAL OPERATING REVENUES $ 3,795,430 $ 3,795,430 $ 3,318,594 $ (476,836) $ 3,557,961 (See independent auditor's report.) - 80- VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) .r 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual OPERATING EXPENSES EXCLUDING DEPRECIATION Operations-golf club Golf club general operations Personnel $ 398,480 $ 398,480 $ 405,516 $ 7,036 $ 371,802 Materials and supplies 178,420 215,050 213,501 (1,549) 191,366 Operation and contractual 179,375 178,225 173,924 (4,301) 184,154 Total golf club general operations 756,275 791,755 792,941 1,186 747,322 Golf club range operations Personnel 55,045 55,045 49,114 (5,931) 61,779 Materials and supplies 14,500 14,500 12,695 (1,805) 13,845 04 Operation and contractual 10,300 10,300 10,861 561 12,335 Total golf club range operations 79,845 79,845 72,670 (7,175) 87,959 Golf cart operations Personnel 22,965 22,965 24,395 1,430 25,135 Materials and supplies 1,400 1,400 188 (1,212) 1,460 Operation and contractual 9,000 9,000 7,194 (1,806) 3,445 Total golf cart operations 33,365 33,365 31,777 (1,588) 30,040 r Golf course maintenance Personnel 447,055 447,055 451,004 3,949 410,021 Materials and supplies 133,150 140,300 139,492 (808) 44,344 Operation and contractual 31,000 33,500 16,829 (16,671) 33,172 Total golf course maintenance 611,205 620,855 607,325 (13,530) 487,537 Total operations-golf club 1,480,690 1,525,820 1,504,713 (21,107) 1,352,858 Operations-bath and tennis General operations-Sports Core,Polo and Open Fields Personnel 325,465 308,630 217,447 (91,183) 296,258 Materials and supplies 21,100 30,935 35,067 4,132 36,099 Operation and contractual 119,685 126,685 88,602 (38,083) 156,982 •. Total general operations 466,250 466,250 341,116 (125,134) 489,339 Swimming operations Personnel 108,450 108,450 89,297 (19,153) 132,872 Materials and supplies 23,500 23,500 14,517 (8,983) 16,435 Operation and contractual 28,200 28,200 34,663 6,463 25,542 Total swimming operations 160,150 160,150 138,477 (21,673) 174,849 (This schedule is continued on the following page.) -81 - VILLAGE OF OAK BROOK,ILLINOIS SPORTS CORE FUND �. SCHEDULE OF OPERATING EXPENSES-BUDGET AND ACTUAL(Continued) For the Year Ended December 31,2004 (With Comparative Actual) r. 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual ..r OPERATING EXPENSES EXCLUDING DEPRECIATION(Continued) Operations-bath and tennis(Continued) e- Tennis operations-outdoor Personnel $ 75,895 $ 75,895 $ 64,188 $ (11,707) $ 82,787 Materials and supplies 9,000 9,000 2,555 (6,445) 7,880 Operation and contractual 15,850 15,850 11,292 (4,558) 18,301 1 Total tennis operations-outdoor 100,745 100,745 78,035 (22,710) 108,968 Total operations-bath and tennis 727,145 727,145 557,628 (169,517) 773,156 Food and beverage Personnel 626,415 616,865 529,796 (87,069) 600,429 Materials and supplies 434,450 435,050 320,143 (114,907) 513,158 Operation and contractual 171,100 180,050 129,319 (50,731) 179,243 Total food and beverage 1,231,965 1,231,965 979,258 (252,707) 1,292,830 Capital outlay 226,000 180,870 81,914 (98,956) 76,390 TOTAL OPERATING EXPENSES- BUDGETARY BASIS $ 3,665,800 $ 3,665,800 3,123,513 $ (542,287) 3,495,234 ADJUSTMENTS TO GAAP BASIS Capital expenditures (74,500) (52,506) Depreciation expense 266,641 240,689 Total adjustments to GAAP basis 192,141 188,183 TOTAL OPERATING EXPENSES $ 3,315,654 $ 3,683,417 v r. •.r (See independent auditor's report.) -82- INTERNAL SERVICE FUNDS Self-Insurance Fund -to account for all costs associated with self-insurance risks for employee health and dental insurance. Garage Fund - to account for all costs associated with the operation and maintenance of the Village's vehicle fleet equipment. Capital Replacement Fund -to account for revenues and expenditures relative to the replacement of major capital equipment, primarily vehicles. VILLAGE OF OAK BROOK, ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS December 31, 2004 Self- Capital Insurance Garage Replacement Total CURRENT ASSETS Cash and investments $ 82,708 $ 74,419 $ 2,453,886 $ 2,611,013 Receivables Accrued interest - - 786 786 Other 355,040 100 - 355,140 Inventories - 37,361 - 37,361 Total current assets 437,748 111,880 2,454,672 3,004,300 CAPITAL ASSETS Depreciable, net of — accumulated depreciation - 5,299 2,128,661 2,133,960 Net capital assets - 5,299 2,128,661 2,133,960 Total assets 437,748 117,179 4,583,333 5,138,260 CURRENT LIABILITIES Accounts payable - 6,250 6,000 12,250 Accrued payroll - 8,231 - 8,231 .. Compensated absences payable - 10,467 - 10,467 Claims payable 427,000 - - 427,000 v Total current liabilities 427,000 24,948 6..000 457,948 NET ASSETS Invested in capital assets, net of related debt - 5,299 2,128,661 2,133,960 Unrestricted 10,748 86,932 2,448,672 2,546,352 TOTAL NET ASSETS $ 10,748 $ 92,231 $ 4,577,333 $ 4,680,312 (See independent auditor's report.) -t - s3 - VILLAGE OF OAK BROOK, ILLINOIS INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS For the Year Ended December 31,2004 _ Self- Capital Insurance Garage Replacement Total ti. OPERATING REVENUES Charges for services $ 2,035,103 $ 469,100 $ 50,600 S 2.554,803 Total operating revenues 2,035,103 469,100 50,600 2.554,803 OPERATING EXPENSES *' Claims and insurance 2,387,418 - - 2,387,418 Garage operations - 456,211 - 456,211 Miscellaneous - - 38,341 38,341 Depreciation - 9,878 315,614 325,492 Total operating expenses 2,387,418 466,089 353,955 3,207,462 v OPERATING INCOME(LOSS) (352,315) 3,011 (303,355) (652,659) NONOPERATING REVENUES (EXPENSES) Miscellaneous income - 839 - 839 Investment income 3,866 898 27,458 32,222 Gain on sale of capital assets - - 8.458 8,458 Total nonoperating revenues (expenses) 3,866 1,737 35,916 41,519 `.. CHANGE IN NET ASSETS (348,449) 4,748 (267,439) (611,140) NET ASSETS,JANUARY 1 359,197 87,483 4,844,772 5,291,452 NET ASSETS,DECEMBER 31 S 10.748 S 92,231 S 4.577,333 S 4,680,312 1 �1 tt (See independent auditor's report.) -84- VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS •. COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31,2004 Self- Capital Insurance Garage Replacement Total CASH FLOWS FROM OPERATING ACTIVITIES •`► Receipts from internal services transactions $ 1,430,602 $ 469,022 $ 50,600 $ 1,950,224 Receipts from miscellaneous revenue 604,501 839 - 605,340 Payments to suppliers (2,541,258) (301,214) (38,341) (2,880,813) Payments to employees - (161,697) - (161.697) Net cash from operating activities (506,155) 6,950 12,259 (486,946) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES None - - - - Net cash from non-capital financing activities - - - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets - - (368,593) (368,593) Proceeds from sale of capital assets - - 8,458 8,458 Net cash from capital and related financing activities - (360.135) (360.135) CASH FLOWS FROM INVESTING ACTIVITIES — Purchase ofinvestments - - (11,548) (11,548) Interest received 3,866 898 30.239 35.003 Net cash from investing activities 3,866 898 18.691 23,455 ` NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (502,289) 7,848 (329,185) (823,626) �r CASH AND CASH EQUIVALENTS, JANUARY 1 584,997 66,571 1,737,556 2,389,124 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 82,708 $ 74,419 $ 1,408,371 $ 1,565,498 CASH AND INVESTMENTS Cash and cash equivalents $ 82,708 S 74,419 $ 1,408,371 $ 1,565,498 Investments - - 1,045,515 1,045,515 TOTAL CASH AND INVESTMENTS $ 82.708 S 74.419 S 2.453.886 S 2.611.013 NONCASH TRANSACTIONS Capital assets included in prior year prepaid expenses $ - S - $ 380,000 $ 380,000 Capital assets included in accounts payable - - 6,000 6,000 Unrealized gain(loss)on investments - - (2,525) (2,525) TOTAL NONCASH TRANSACTIONS $ - $ - $ 383,475 $ 383,475 (This statement is continued on the following page.) -� -85- VILLAGE OF OAK BROOK,ILLINOIS INTERNAL SERVICE FUNDS ti COMBINING STATEMENT OF CASH FLOWS(Continued) For the Year Ended December 31,2004 Self Capital Insurance Garage Replacement Total RECONCILIATION OF OPERATING INCOME (LOSS)TO NET CASH FLOWS FROM �- OPERATING ACTIVITIES Operating income(loss) $ (352,315) $ 3.011 $ (303,355) $ (652,659) Depreciation 9,878 315,614 325,492 Miscellaneous income 839 - 839 Adjustments to reconcile operating income (loss)to net cash from operating activities Changes in assets and liabilities r, Accounts receivable (355,040) (78) - (355,118) Inventories - 9,177 - 9,177 Accounts payable - (14,213) - (14,213) Accrued payroll and compensated absences - (1,664) - (1,664) Claims payable 201,200 - - 201,200 NET CASH FROM OPERATING ACTIVITIES $ (506,155) $ 6,950 $ 12,259 $ (486,946) w r (See independent auditor's report.) -86- VILLAGE OF OAK BROOK,ILLINOIS SELF-INSURANCE FUND .. SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) rt 2004 Variance Original Final Over 2003 Budget Bud2ct Actual (Under) Actual ,r OPERATING REVENUES Charges for services $ 1,961,600 $ 1,961,600 $ 2,035,103 $ 73,503 $ 1,837,129 Total operating revenues 1,961,600 1,961,600 2,035,103 73,503 1,837,129 OPERATING EXPENSES Claims and insurance Insurance and administration 326,880 326,880 292,914 (33,966) 264,905 Health claims 1,450,000 1,920,538 1,962,923 42,385 1,229,041 Dental claims 140,000 140,000 131,581 (8,419) 132,952 Total operating expenses 1,916,880 2,387,418 2,387,418 - 1,626,898 •.r OPERATING INCOME(LOSS) 44,720 (425,818) (352,315) 73,503 210,231 NONOPERATING REVENUES (EXPENSES) Investment income 4,000 4,000 3,866 (134) 3,687 Total nonoperating revenues _ (expenses) 4,000 4,000 3,866 (134) 3,687 CHANGE IN NET ASSETS $ 48,720 $ (421,818) (348,449) $ 73,369 213,918 NET ASSETS,JANUARY 1 359,197 145,279 NET ASSETS,DECEMBER 31 $ 10,748 $ 359,197 (See independent auditor's report.) - 87- VILLAGE OF OAK BROOK,ILLINOIS GARAGE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 Variance Original Final Over 2003 - Budget Budget Actual (Under) Actual OPERATING REVENUES Charges for services $ 469,100 $ 469,100 $ 469,100 $ - $ 469,100 Total operating revenues 469,100 469,100 469,100 - 469,100 OPERATING EXPENSES EXCLUDING DEPRECIATION Garage operations Personnel 174,190 168,310 160,035 (8,275) 161,038 Materials and supplies 120,845 120,845 134,694 13,849 110,644 Operations and contractual 125,520 150,840 161,482 10,642 160,713 Capital outlay 8,000 8,000 - (8,000) 933 Total operating expenses excluding depreciation 428,555 447,995 456,211 8,216 433,328 OPERATING INCOME 40,545 21,105 12,889 8,216 35,772 NONOPERATING REVENUES (EXPENSES) _ Miscellaneous income - - 839 839 - Investment income 1,000 1,000 898 (102) - Total nonoperating revenues (expenses) I,000 1,000 1,737 737 - NET INCOME BEFORE TRANSFERS 41,545 22,105 14,626 (7,479) 35,772 TRANSFERS(OUT) (22,250) (22,250) - 22,250 (200,000) CHANGE IN NET ASSETS- BUDGETARY BASIS $ 19,295 $ (145) 14,626 $ 14,771 (164,228) ADJUSTMENTS TO GAAP BASIS Depreciation expense (9,878) (7,346) Total adjustments to GAAP basis (9,878) (7,346) CHANGE IN NET ASSETS-GAAP BASIS 4,748 (171,574) NET ASSETS,JANUARY 1 87,483 250,612 Prior period adjustment - 8,445 NET ASSETS,JANUARY 1,RESTATED 87,483 259,057 NET ASSETS,DECEMBER 31 $ 92,231 $ 87,483 (See independent auditor's report.) -88- VILLAGE OF OAK BROOK,ILLINOIS CAPITAL REPLACEMENT FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET ASSETS-BUDGET AND ACTUAL _ For the Year Ended December 31,2004 (With Comparative Actual) 2004 _ Variance Original Final Over 2003 Budget Budget Actual (Under) Actual OPERATING REVENUES Charges for services $ 50,600 $ 50,600 $ 50,600 $ - $ 48,100 Total operating revenues 50,600 50,600 50,600 - 48,100 OPERATING EXPENSES EXCLUDING DEPRECIATION _ Capital outlay 709,750 709,750 678,201 (31,549) 371.705 Total operating expenses excluding depreciation 709,750 709,750 678,201 (31,549) 371,705 �. OPERATING INCOME(LOSS) (659,150) (659,150) (627,601) (31,549) (323,605) NONOPERATING REVENUES (EXPENSES) Investment income 58,445 58,445 27,458 (30,987) 39,686 Gain on sale of capital assets 15,000 15,000 8,458 (6,542) 7,546 Total nonoperating revenues (expenses) 73,445 73,445 35.916 (37,529) 47,232 CHANGE IN NET ASSETS- BUDGETARY BASIS $ (585,705) $ (585,705) (591,685) $ (5,980) (276,373) ADJUSTMENTS TO GAAP BASIS Capital expenditures 639,860 362,001 Depreciation expense (315,614) (302,300) Total adjustments to GAAP basis 324.246 59,701 CHANGE IN NET ASSETS-GAAP BASIS (267,439) (216,672) r NET ASSETS,JANUARY 1 4,844,772 4,922,931 Prior period adjustment - 138.513 NET ASSETS,JANUARY 1,RESTATED 4,844,772 5.061.444 NET ASSETS,DECEMBER 31 $ 4,577,333 S 4.844.772 _ (See independent auditor's report.) - 89- SCMIA AHVIXIGIA PENSION TRUST FUNDS Police Pension Fund -to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn police personnel at rates fixed by State Statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. _ Firefighters' Pension Fund -to account for the accumulation of resources to pay pension costs. Resources are contributed by sworn fire personnel at rates fixed by State Statutes and by the Village as a percentage of payroll based upon an annual actuarial valuation. VILLAGE OF OAK BROOK, ILLINOIS FIDUCIARY FUNDS COMBINING STATEMENT OF PLAN NET ASSETS — December 31, 2004 Pension Trust — Police Firefighters' Pension Pension Total ASSETS Cash $ 344,750 $ 227,883 $ 572,633 _ Investments Illinois Funds 24,065 319,863 343,928 Certificates of Deposit 100,154 - 100,154 — U.S. Treasury Securities 3,525,734 1,941,113 5,466,847 U.S. Agency Securities 9,344,899 6,567,503 15,912,402 State and Local Obligations 1,212,399 921,479 2,133,878 Mutual Funds 9,482,425 9,331,550 18,813,975 Accrued interest receivable 126,332 87,940 214,272 Total assets 24,160,758 19,397,331 43,558,089 LIABILITIES — Accounts payable 3,316 2,054 5,370 Total liabilities 3,316 2,054 5,370 — NET ASSETS HELD IN TRUST — FOR PENSION PLAN BENEFITS $ 24,157,442 $ 19,395,277 $ 43,552,719 (See independent auditor's report.) .- - 90 - VILLAGE OF OAK BROOK, ILLINOIS FIDUCIARY FUNDS COMBINING STATEMENT OF CHANGES IN PLAN NET ASSETS For the Year Ended December 31, 2004 Pension Trust _ Police Firefighter's Pension Pension Total ADDITIONS Contributions Employer contributions $ 449,652 $ 490,612 $ 940,264 Employee contributions 271,295 200,477 471,772 Total contributions 720,947 691,089 1,412,036 Investment income Net appreciation in fair value of investments 1,087,899 1,141,704 2,229,603 Interest 726,990 357,551 1,084,541 Total investment income 1,814,889 1,499,255 3,314,144 Less investment expense (43,108) (28,981) (72,089) Net investment income 1,771,781 1,470,274 3,242,055 Total additions 2,492,728 2,161,363 4,654,091 _ DEDUCTIONS Benefits and refunds 1,103,002 986,709 2,089,711 Administrative 22,835 34,148 56,983 Total deductions 1,125,837 1,020,857 2,146,694 NET INCREASE 1,366,891 1,140,506 2,507,397 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 22,790,551 18,254,771 41,045,322 December 31 $ 24,157,442 $ 19,395,277 , $ 43,552,719 (See independent auditor's report.) - 91 - VILLAGE OF OAK BROOK,ILLINOIS POLICE PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS -BUDGET AND ACTUAL For the Year Ended December 31,2004 (With Comparative Actual) 2004 _ Variance Original Final Over 2003 Budget Budget Actual (Under) Actual ADDITIONS Contributions Employer contributions $ 494,590 $ 494,590 $ 449,652 $ (44,938) $ 483,197 +. Employee contributions 288,300 288,300 271,295 (17,005) 279,774 Total contributions 782,890 782,890 720,947 (61,943) 762,971 Investment income Net appreciation in fair value of investments - - 1,087,899 1,087,899 1,783,951 Interest 1,589,000 1,589,000 726,990 (862,010) 667,809 Total investment income 1,589,000 1,589,000 1,814,889 225,889 2,451,760 _ Less investment expense (55,500) (55,500) (43,108) 12,392 (36,844) Net investment income 1,533,500 1,533,500 1,771,781 238,281 2,414,916 _ Total additions 2,316,390 2,316,390 2,492,728 176,338 3,177,887 DEDUCTIONS Benefits and refunds 1,063,000 1,105,000 1,103,002 (1,998) 883,057 Administrative 9,915 12,475 22,835 10,360 25,364 •, Total deductions 1,072,915 1,117.1475 1,125,837 8.362 908,421 NET INCREASE $ 1,243,475 $ 1,198,915 1,366,891 $ 167,976 2,269,466 NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 22,790,551 20,521,085 December 31 $ 24..157,442 $ 22,790,551 (See independent auditor's report.) -92- VILLAGE OF OAK BROOK,ILLINOIS FIREFIGHTERS'PENSION FUND SCHEDULE OF CHANGES IN PLAN NET ASSETS-BUDGET AND ACTUAL For the Year Ended December 31,2004 �- (With Comparative Actual) 2004 Variance Original Final Over 2003 Budget Budget Actual (Under) Actual ADDITIONS Contributions Employer contributions $ 532,675 $ 532,675 $ 490,612 $ (42,063) $ 481,887 Employee contributions 195,800 195,800 200,477 4,677 176,151 Total contributions 728,475 728,475 691,089 (37,386) 658,038 Investment income Net appreciation in fair value of investments - - 1,141,704 1,141,704 2,066,820 Interest 1,305,800 1,305,800 357,551 (948,249) 316,352 Total investment income 1,305,800 1,305,800 1,499,255 193,455 2,383,172 Less investment expense (73,750) (73,750) (28,981) 44,769 (44,798) Net investment income 1,232,050 1,232,050 1,470,274 238,224 2,338,374 Total additions 1,960,525 1,960,525 2,161,363 200,838 2,996,412 DEDUCTIONS Benefits and refunds 1,074,000 1,070,345 986,709 (83,636) 945,914 Administrative 7.865 11,520 34,148 22,628 36,344 Total deductions 1.081,865 1,081,865 1,020,857 (611,008) 982,258 NETINCREASE $ 878,660 $ 878,660 1,140,506 $ 261.846 2,014,154 �. NET ASSETS HELD IN TRUST FOR PENSION BENEFITS January 1 18,254,771 16,240,617 December 31 $ 19,395,277 $ 18,254,771 (See independent auditor's report.) -93 - LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS To account for the noncurrent portion of the Village's compensated absences and installment contract payable from Governmental Funds. MM VILLAGE OF OAK BROOK, ILLINOIS LONG-TERM DEBT PAYABLE BY GOVERNMENTAL FUNDS SCHEDULE OF GENERAL LONG-TERM DEBT December 31,2004 .. Compensated Installment Absences Contract Totals AMOUNT AVAILABLE AND TO BE PROVIDED FOR THE RETIREMENT OF GENERAL LONG-TERM DEBT r Amount available for debt service $ - $ - $ - Amount to be provided for retirement .� of general long-term debt 768,206 3,195,000 3,963,206 TOTAL $ 768.206 $ 3,195,000 $ 3,963,206 GENERAL LONG-TERM -- DEBT PAYABLE Compensated absences $ 768,206 $ - $ 768,206 — Installment contract payable - 3,195,000 3,195,000 TOTAL $ 768.206 $ 3,195,000 $ 3,963,206 (See independent auditor's report.) r - 94 - STATISTICAL SECTION VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENT-WIDE REVENUES Last Two Fiscal Years 2004 2003 PROGRAM REVENUES Charges for services $ 9,396,353 $ 9,108,134 Operating grants 252,129 248,778 Capital grants 151,203 62,201 GENERAL REVENUES Taxes 17,374,010 15,439,260 Investment income 137,322 210,003 Donations - 410,000 Miscellaneous 2,016 60,071 Gain on sale of capital assets - 616,470 TOTAL REVENUES $ 27.313,033 $ 26,154,917 NOTE: The Village implemented GASB 5-34 for the fiscal year ended December 31, 2003. Data Source Village Records - 95 - VILLAGE OF OAK BROOK, ILLINOIS GOVERNMENT-WIDE EXPENSES BY FUNCTION Last Two Fiscal Years — 2004 2003 GOVERNMENTAL ACTIVITIES General government $ 5,219,020 $ 4,934,634 Public safety 9,384,398 9,507,203 Public works 3,739,706 2,993,872 Culture and recreation 1,703,244 1,642,384 Interest 158,552 168,863 Total governmental activities 20,204,920 19,246,956 BUSINESS-TYPE ACTIVITIES Water and sewer 4,307,091 5,350,750 Sports Core 3,361,038 3,739,185 Total business-type activities 7,668,129 9,089,935 TOTAL PRIMARY GOVERNMENT $ 27,873,049 $ 28,336,891 NOTE: The Village implemented GASB S-34 for the fiscal year ended December 31, 2003. Data Source Village Records - 96 - r r r i r r r r r r r r t VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL REVENUES BY SOURCE Last Ten Fiscal Years Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Intergovernmental $ 12,106,579 $ 12,149,759 $ 12,282,960 $ 12,251,058 $ 12,598,948 $ 11,983,169 $ 10,665,042 $ 12,015,110 $ 10,943,766 $ 11,850,802 Non-home rule sales tax - - - - - - - - - 1,304,467 Property taxes 5,410 - - - - - - - - - Utility taxes 1,873,147 1,956,984 1,989,147 1,692,113 1,715,573 2,326,035 3,351,774 4,422,058 4,500,108 4,298,744 Hotel/motel taxes 274,041 290,198 312,383 330,953 338,951 353,692 308,101 297,911 306,365 323,325 Licenses and permits 477,624 374,617 404,998 391,789 432,724 623,858 324,131 468,403 570,261 741,528 Service charges 336,146 423,139 305,137 364,650 425,752 389,557 374,409 560,204 703,634 745,027 Fines and penalties 220,593 211,809 214,086 222,239 198,769 223,462 300,311 311,750 353,513 401,616 Investment income 713,992 784,652 983,733 1,043,142 849,568 1,347,175 1,135,564 486,149 158,482 104,869 Miscellaneous 253,327 296,482 246,490 603,548 665,606 1,679,561 497,185 125,766 638,477 176,630 TOTAL REVENUES $ 16,260,859 $ 16,487,640 $ 16,738,934 $ 16,899,492 $ 17,225,891 $ 18,926,509 $ 16,956,517 $ 18,687,351 $ 18,174,606 $ 19,947,008 NOTE: Includes General,Special Revenue,Debt Service and Capital Projects Funds. Data Source Village Records -97- VILLAGE OF OAK BROOK,ILLINOIS GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 General government $ 2,329,107 $ 2,596,032 $ 3,402,007 $ 3,307,267 $ 4,032,865 $ 5,114,712 $ 11,569,493 $ 10,847,376 $ 5,921,350 $ 5,144,466 Public safety 6,685,874 6,786,918 6,847,213 7,017,793 7,443,818 8,228,147 8,976,293 9,269,396 9,537,454 9,590,916 Public works 3,363,157 3,097,906 3,680,666 4,050,672 3,811,388 3,368,331 3,782,110 2,689,909 2,311,253 3,033,968 Culture and recreation 539,734 726,820 1,010,800 1,056,802 1,144,361 1,104,942 1,245,024 1,603,019 1,554,606 1,563,457 Debt service - - - - - - - - - - TOTAL EXPENDITURES $ 12,917,872 $ 13,207,676 $ 14,940,686 $ 15,432,534 $ 16,432,432 $ 17,816,132 $ 25,572,920 $24,409,700 $ 19,324,663 $ 19,332,807 NOTE: Includes General,Special Revenue,Debt Service and Capital Projects Funds. Data Source Village Records -98- j VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Percent Tax Total Total of Total Tax Fiscal Levy Tax Tax Collections to Year Year Levy Collection Tax Levy 1995 1994 $ - $ - N/A 1996 1995 - - N/A 1997 1996 - - N/A 1998 1997 - - N/A 1999 1998 - - N/A 2000 1999 - - N/A 2001 2000 - - N/A 2002 2001 - - N/A 2003 2002 - - N/A 2004 2003 - - N/A NOTE: The Village has levied property taxes for debt service purposes only. The levies were abated by $300,000 paid by the General Fund for 1984-1988, by $300,000 in 1989 paid for by the Debt Service Fund and by $290,000 paid for by the Debt Service Fund in 1993. All debt was retired in 1994. Data Source Village Records - 99 - VILLAGE OF OAK BROOK,ILLINOIS Oft ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Levy Years i Real Property Ratio of Estimated Total Assessed Tax Assessed Actual Value to Levy Value Value Total Estimated Year (in thousands) (in thousands) Actual Value 1994 $ 887,591 $ 2,662,773 1995 905,788 2,717,364 33.33 1996 938,948 2,816,844 33.33 1997 972,447 2,917,341 1998 1,005,097 3,015,291 33.33 1999 1,045,985 3,137,955 33.33 2000 1,100,468 3,301,404 33.33 2001 1,181.481 3,544,443 33.33 2002 1,293,804 3,881,412 33.33 2003 1,327,100 3,981.300 33.33 Data Source — Office of the County Clerk _ - 100 - VILLAGE OF OAK BROOK, ILLINOIS PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Levy Years Tax Levy Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 TAX RATES Village of Oak Brook - - - - - - - - - - Basic Town 0.8089 0.7141 0.6095 0.6072 0.5834 0.5601 0.5379 0.5072 0.4685 0.4375 Junior College#502 0.2068 0.2062 0.2053 0.2042 0.2027 0.2006 0.1966 0.1930 0.2179 0.2097 Grade School#53 1.0763 1.0605 1.0458 1.0362 1.0237 0.9862 0.9689 0.9476 0.8877 0.8984 High School#86 1.6122 1.5907 1.4944 1.4885 1.5258 1.4881 1.4367 1.4250 1.3858 1.3094 Oak Brook Park District 0.2064 0.2045 0.1997 0.1932 0.1911 0.1877 0.1674 0.1538 0.1667 0.1666 TOTAL TAX RATES 3.9106 3.7760 3.5547 3.5293 3.5267 3.4227 3.3075 3.2266 3.1266 3.0216 NOTE: Includes all county, forest preserve and water commission rates. Property tax rates are per$100 of assessed valuation. Data Source Office of the County Clerk - ]O1 - VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2004 — (2) *Percentage (1) of Debt (3) _ Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt Village of Oak Brook $ - 100.00 $ - DuPage County 204,155,000 4.36 8,910,219 DuPage Forest Preserve 194,996,835 4.36 8,510,517 _ DuPage Water Commission 75,465,000 4.56 3,444,564 Park Districts 2,625,000 73.66 1,933.,495 Elementary School Districts 90,464,000 3.92 3,549,272 High School Districts 94,728,627 7.60 7,195,081 Junior Collece 502 118,405,000 3.98 4,714,583 Unit District 205 84,750,000 7.21 6,113,433 _ TOTAL $ 865,589,462 $ 44,371..164 * Determined by ratio of assessed value of property subject to taxation in overlapping unit to value of property subject to taxation in the Village of Oak Brook, Illinois. ** Amount in column (2) multiplied by amount in column (1). - Totals may not be exact due to rounding. Data Source Office of the County Clerk ` - 10') - I I I - { r r f VILLAGE OF OAK BROOK,ILLINOIS SCHEDULE OF BOND COVERAGE WATERWORKS SYSTEM BONDS Last Ten Fiscal Years Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Gross revenue $ 3,973,247 $ 3,393,279 $ 3,432,412 $ 3,511,768 $ 3,631,527 $ 3,599,840 $ 3,421,386 $ 3,683,958 $ 3,754,359 $ 4,014,978 Expenses 3,827,515 3,766,251 3,268,633 3,364,481 4,038,892 3,970,741 3,930,927 4,207,445 4,947,282 3,810,475 NET REVENUE AVAILABLE FOR DEBT SERVICE $ 145,732 $ (372,972) $ 163,779 $ 147,287 $ (407,365) $ (370,901) $ (509,541) $ (523,487) $ (1,192,923) $ 204,503 DEBT SERVICE REQUIREMENTS Principal $ 250,000 $ 275,000 $ - $ - $ - $ - $ - $ - $ - $ - Interest 16,000 5,500 - - - - - - - TOTAL DEBT SERVICE $ 266,000 $ 280,500 $ - $ - $ - $ - $ - $ - $ $ COVERAGE 0.55 (1.33) - - - - - - - Data Source Village Records - 103- VILLAGE OF OAK BROOK, ILLINOIS DEMOGRAPHIC STATISTICS December 31, 2004 (2) (2) Per (2) Unemploy- Fiscal (1) Capita Median ment Year Population Income Age Percentage 1970 4,164 $ 8,997 34 0.07% — 1984 7,263 22,737 39 3.14 1989 9,151 26,818 41 2.05 1992 9,087 60,347 42 5.70 2000 8,702 76,668 50 3.60 — Data Sources -- (1) U.S. Census Bureau (2) Illinois Department of Bureau of Labor Statistics - 104 - VILLAGE OF OAK BROOK, ILLINOIS PROPERTY VALUE AND CONSTRUCTION Last Ten Fiscal Years (1) (1) Commercial Residential Property Construction Construction _ Fiscal Value Number Value Number Value Year (In Thousands) of Units (In Thousands) of Units (In Thousands) 1995 $ 2,662,773 2 $ 4,000 10 $ 10,000 1996 2,717,364 2 12,345 22 14,035 1997 2,816,844 2 7,980 22 11,533 1998 2,917,341 4 16,655 32 20,047 1999 3,015,291 5 29,983 22 9,894 2000 3,137,955 1 2,000 37 31,587 2001 3,301,404 2 16,246 37 27,972 2002 3,544,443 0 0 32 22,614 2003 3,881,412 0 0 30 19,561 2004 3,981,299 3 18,250 27 19,418 Data Source (1) Village Records - 105 - VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL TAXPAYERS December 31, 2004 — Percentage 2003 of Total Assessed Assessed Taxpayers Type of Business Valuation Valuation Oakbrook Shopping Center, LLC Shopping Center $ 82,864,570 6.24% McDonald's Corporation Office Buildings 39,125,630 2.95% _ Equity Office Properties Office Buildings 26,110,240 1.97% D&T Office Buildings 18,490,860 1.39% SFERS Real Estate Group Executive Towers 14,705,060 1.11% — Carramerica Office Buildings 12,473,090 0.94% Rouse Company Hotel 12,243,380 0.92% Equity Office Property Office Building 10,945,810 0.83% 2211-15 York Rd LLC Office Buildings 9,874,470 0.74% The John Buck Company Office Building 9,847,430 0.74% $ 236,680.540 17.83% Data Source _ Office of the County Clerk - 106 - VILLAGE OF OAK BROOK, ILLINOIS SCHEDULE OF INSURANCE IN FORCE _ December 31, 2004 Insurance Coverage Amount of Type of Insurance Company Expires Coverage Village Manager's Bond Intergovernmental Risk Management Agency 12/31/04 $ 150,000 Treasurer's Bond Intergovernmental Risk Management Agency 12/31/04 100,000 Host Liquor Liability Lloyds of London Insurance Company 11/24/05 1000,000 Contingent Business Interruption Insurance for Loss of Sales Tax Revenues Intergovernmental Risk Management Agency 12/31/04 7,000,000 The Village entered into a contractual agreement with 14 other municipalities 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,workmens'compensation and surety risks not covered by the Village's Treasurers'or Village Manager's Bond. The Village's contribution to this cooperative agency was determined by the pro rata share for each municipality's audited expenses and create sufficient reserves for claim payments and the purchase of excess insurance. The Village's deductible is$2,500 per occurrence. IRMA is required to pay up to$250,000 per occurrence for loss or injury within the scope of its self-insurance coverage for property claims and up to$10,000,000 for general liability and auto liability. IRMA has also purchased excess catastrophe insurance over the amount of its obligations and aggregate stop loss insurance. The amount of excess insurance is $7,000,000 per occurrence for liability claims and$1,000,000,000 for property claims. As of December 31, 2004, IRMA members totaled 76 municipalities. Data Source Village Records,IRMA - 107- VILLAGE OF OAK BROOK, ILLINOIS MISCELLANEOUS STATISTICS December 31,2004 Date of Incorporation February 21, 1958 -- Form of Government Seven-member Board of Trustees, including President: Village Manager appointed by Board of Trustees -- Area 8.5 Square Miles Miles of Streets 48 miles Number of Street Lights 565 _ Fire Protection Number of stations 2 Number of firefighters 33 Number of paid on call firefighters 6 Police Protection — Number of stations 1 Number of policemen and officers 45 Detention facilities Juvenile 2 Adult 2 Education Attendance centers 2 Number of teachers 76 Number of students 489 Municipal Water Department Number of customers 5,557 Total water pumped(in thousands) 1,382,000 gallons Average daily consumption 3.786 million gallons Miles of water mains 115 Building permits issued 891 Recreation Oak Brook Sports Core- 269 acres including Bath and Tennis club and 18 hole golf course _ Oak Brook Park District 110 acres including indoor tennis, outdoor tennis, and recreation and aquatics center DuPage County Forest Preserve 449 acres (This schedule is continued on the following page.) - 108 - VILLAGE OF OAK BROOK,ILLINOIS MISCELLANEOUS STATISTICS (Continued) December 31,2004 Culture Number of libraries 1 Number of books,audiovisual materials, and other collection items 89,292 Census data 1960 324 1970 4,164 1975 5,281 1980 6,641 1984 7,263 1990 9,087 2000 8,702 Employees _ Full-time 162 Part-time/seasonal 250 Data Source Village Records _ 109-