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CAFR (Year Ended December 31, 2006) OF OA o - � o COU N T *i � VILLAGE OF OAK BROOK COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended December 31 , 2006 - VILLAGE OF OAK BROOK, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT — For the Year Ended December 31, 2006 Prepared by the Financial Department Darrell J. Langlois Finance Director/Treasurer Village of Oak Brook,Illinois Table of Contents Pae s Introductory Section Table of Contents i Principal Officials iv Organization Chart v Certificate of Achievement for Excellence in Financial Reporting vi Letter of Transmittal vii-x Financial Section Independent Auditor's Report 1 -2 Management's Discussion and Analysis 3- 15 Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets 16- 17 Statement of Activities 18-19 _ Fund Financial Statements Balance Sheet-Governmental Funds 20 Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets 21 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Net Assets-Proprietary Funds 24-25 Statement of Revenues, Expenses,and Changes in Net Assets- Proprietary Funds 26 Statement of Cash Flows-Proprietary Funds 27-28 Statement of Fiduciary Net Assets 29 Statement of Changes in Fiduciary Net Assets-Pension Trust Funds 30 Notes to Financial Statements 31 -62 Required Supplementary Information(Unaudited) Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual-General Fund 63 Analysis of Funding Progress Illinois Municipal Retirement Fund 64 Sheriffs Law Enforcement Personnel 64 Police Pension Fund 64 Firefighters'Pension Fund 64 Employer Contributions Illinois Municipal Retirement Fund 65 Sheriffs Law Enforcement Personnel 65 Police Pension Fund 65 Firefighters'Pension Fund 65 Note to Required Supplementary Information 66 i Village of Oak Brook,Illinois Table of Contents Pa a s) Financial Section(Continued) Supplemental Data(Combining and individual Fund Financial Statements and Schedules, Budgetary Schedules,and Schedules of Capital Assets Used in the Operation of Governmental Funds) Major Governmental Funds Schedule of Revenues—Budget and Actual—General Fund 67 Schedule of Expenditures—Budget and Actual—General Fund 68-75 Schedule of Revenues, Expenditures and Changes in Fund Balance—Budget and Actual—Infrastructure Fund 76-77 Governmental Funds _ Combining Balance Sheet-Nonmajor Governmental Funds 78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances-Nonmajor Governmental Funds 79 Schedule of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual-Nonmajor Governmental Funds Hotel/Motel Tax Fund 80 Motor Fuel Tax Fund 81 Foreign Fire Insurance Fund 82 Promenade T.I.F. Fund 83 Proprietary Funds Schedule of Revenues, Expenses and Changes in Net Assets- Budget and Actual—Waterworks System Fund 84 Schedule of Operating Expenses—Budget and Actual- Waterworks System Fund 85 Schedule of Revenues, Expenses and Changes in Net Assets— Budget and Actual—Sports Core Fund 86 Schedule of Operating Revenues—Budget and Actual— Sports Core Fund 87 Schedule of Operating Expenses—Budget and Actual— Sports Core Fund 88-89 Internal Service Funds Combining Statement of Net Assets 90 Combining Statement of Revenues,Expenses and Changes in Net Assets 91 Combining Statement of Cash Flows 92-93 Schedule of Revenues, Expenses and Changes in Net Assets— Budget and Actual Self-Insurance Fund 94 Garage Fund 95 Capital Replacement Fund 96 ii Village of Oak Brook,Illinois Table of Contents Financial Section(Continued) Pae Us _ Supplemental Data(Continued) Fiduciary Funds Combining Statement of Plan Net Assets 97 Combining Statement of Changes in Plan Net Assets Pension Trust Funds 98 Schedule of Changes in Plan Net Assets-Budget and Actual Police Pension Fund 99 Firefighters'Pension Fund 100 Statistical Section(Unaudited) Financial Trends Net Assets by Component—Last Three Fiscal Years 101 Change in Net Assets—Last Three Fiscal Years 102- 103 Fund Balances of Governmental Funds—Last Ten Fiscal Years 104 Changes in Fund Balances of Governmental Funds—Last Ten Fiscal Years 105 Revenue Capacity Assessed Value and Actual Value of Taxable Property 106 Property Tax Rates—Direct and Overlapping Governments 107 Principal Revenue Taxpayers 108 Direct and Overlapping Sales Tax Rates 109 Debt Capacity Ratios of Outstanding Debt By Type 110 Schedule of Direct and Overlapping Bonded Debt 111 Legal Debt Margin Information 112 Demographic and Economic Information Demographic and Economic Information—Last Ten Fiscal Years 113 Top Five Principal Employers 114 Retail Sales Volume—Top 25 Illinois Communities 115 Sales Tax Receipts—Cash Basis—Last Ten Fiscal Years 116 State Sales Tax Receipts By Month—Cash Basis—Last Three Fiscal Years 117 Non-Home Rule Sales Tax Receipts By Month—Cash Basis—Last Three Fiscal Years 118 Sales Tax By Category—Last Ten Fiscal Years 119 Non-Home Rule Sales Tax By Category—Last Ten Fiscal Years 120 Budgeted Full-Time Equivalent Employees—Last Ten Fiscal Years 121-122 Operating Information Operating Indicators—Last Ten Fiscal Years 123 Capital Asset Statistics—Last Ten Fiscal Years 124 III Village of Oak Brook, Illinois Principal Officials — Year Ended December 31, 2006 Kevin Quinlan,Village President Linda K.Gonnella,Village Clerk BOARD OF TRUSTEES Stelios Aktipis Kathryn F. Manofsky John W.Craig Robert G.Sanford Jeffrey J. Kennedy Asif Yusif VILLAGE MANAGER Richard B.Boehm,Village Manager FINANCE DEPARTMENT Darrell J. Langlois, Finance Director/Treasurer iv — r i r 1 r r r r r r r r r r r r r r r VILLAGE OF OAK BROOK ORGANIZATIONAL CHART December 31, 2006 Residents of Oak Brook Village Clerk Village President and Board of Trustees Fiiiage=manager Village Attorney [Boards'and Commissions Assistant Finance Public Works Community Information Engineering Library Village Director Police Chief Fire Chief Director Development Services& Director Director Manager Director Purchasing Director Golf Bath&Tennis Manager Manager Communications Supervisor 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, 2005 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. — President Executive Director Vi GE 0 F 04,f. P ®90 � y G A ' �OUNTI Village of June 4,2007 _Oak Brook President and Board of Trustees 1200 Oak Brook Road ^ak Brook,IL 60523-2256 Village Of Oak Brook Website Oak Brook,Illinois 60523 w- www.oak-brook.org Administration The Comprehensive Annual Financial Report (CAFR) of the Village of Oak Brook for the year 630.368.5000ended December 31, 2006 is submitted herewith. Res nsibili for both the accurac of the FAX 630.3630.368.5.5045 � � y information presented and the thoroughness and fairness of the presentation, including all Community disclosures, rests with the Village. I believe the data, as presented, is accurate in all material Development respects; that it is presented in a manner designed to fairly set forth the financial position and — 630.368.5101 results of operations of the Village as measured by the financial activity of its various funds and FAX 630.368.5128 activities; and that all disclosures necessary to enable the reader to gain the maximum Engineering understanding of the Village's financial affairs have been included. Department 630.368.5130 1 am pleased to report that the certified public accounting firm of McGladrey & Pullen, LLP has FAX 630.368.5128 issued an unqualified opinion on the Village's financial statements for the year ended December 31, Fire Department 2006. The independent auditor's report is located at the front section of the CAFR. 630.368.8200 The CAFR res g y (MD&A), FAx 630.368.5250 presents the management's discussion and analysisbasic financial statements and required supplementary information. The MD&A, which immediately follows the independent Police Department auditor's report, provides a narrative introduction, overview, and analysis of the basic financial 630.368.8700 statements. The MD&A complements this letter of transmittal and should be read in conjunction FAx 630.368.8739 with it. Included in the basic financial statements are the govemment-wide financial statements, fund financial statements and notes to the financial statements. The required supplementary Public Works Department information presents the budgetary comparison schedules and other schedules. 630.368.5270 FAx 630.368.5295 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 Oak Brook which the primary government is financially accountable,and (3) other organizations for which the Public Library 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 600 Oak Brook Road these criteria, there are no agencies or entities whose financial data should be combined with and yak Brook,IL 60523-2200 included in the basic financial statements of the Village. 630.368.7700 FAX 630.368.7704 mak Brook Sports Core Bath&Tennis Club 700 Oak Brook Road Oak Brook,IL 60523-4600 630.368.6420 FAX 630.368.6439 Golf Club 2606 York Road .„k Brook,IL 60523-4602 630.368.6400 FAX 630.368.6419 Vil Profile of the Village of Oak Brook The Village of Oak Brook is located approximately 15 miles west of the Chicago Loop, near the geographic center of the seven-county Chicago metropolitan area. Excellent transportation links are provided to all parts of the greater metropolitan area by a network of tollways and federal and state highways which pass through or near the Village. The Tri-State Tollway(1-294),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 4.5%, Du Page County has established an unemployment rate of 3.6%, 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 operates under the Village form of government with an elected Village President and six(6) Trustees. Operational management is provided by a professional manager appointed by the Board of Trustees. The Village provides a wide range of services including police protection,fire protection, recreation facilities, a free public library, water supply, storm water collection, public works operations, road maintenance, building and inspection _ services,and general administrative services. The annual budget is the primary guiding document for the Village's financial planning and control. 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. Local Economy and Finances The Village of Oak Brook has been and continues to be one of the preeminent business centers in the Chicago metropolitan area. Several 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 operate without a real estate tax since inception due to ... the sales taxes generated from retail business activities. With sales taxes being the largest source of 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 had 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 viii and in 2005 the Village recognized$2.4 million of additional revenue 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. During 2006 the Village engaged a consultant to begin work on the Oak Brook Commercial Revitalization Project, which is designed to look at improving the commercial areas within the Village. As part of this project it is expected that the Village will be required to make additional investments in the area of infrastructure in order to encourage redevelopment and increasing the Village's sales tax base. Also during 2006 the Village became aware of plans by the Illinois State Toll Highway Authority to widen the 1-88 bridge over 22nd Street. The Village is required to fund 1/3 of the cost of this project,which based on recent estimates is expected to be approximately$7.0 million. In order to fund the infrastructure needs of the Oak Brook Commercial Revitalization Project and the Village's financial obligation for the 1-88/22nd Bridge project, the Village Board directed that a referendum question be placed on the ballot for the April, 2007 election that authorizes an increase in non-home rule sales tax by an additional 0.25%. This measure was approved by 59%of the voters and will result in additional revenue of approximately$2.6 million annually in order to fund these two important projects. During 2005 the Village approved a redevelopment agreement with a developer to add a significant retail center in the Butterfield-Meyers Road area that will have a positive effect on sales tax revenue in the future. This project is being assisted with tax increment financing (T.I.F) using both the incremental real estate taxes as well as 20% of the incremental sales taxes within the project area. Once the project is completed (likely in 2007), it is expected that the Village will receive in excess of$600,000 annually in additional sales tax revenue. Long-term Financial Planning The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Obiectives-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. Roadway Maintenance Plan4his 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 Budge using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers(called"programs")and sets the spending plan for the coming year. The framework of all of the Village's financial planning is centered on the Village Board's well publicized policy of maintaining a cash and investment reserve in the General Fund that meets or exceeds six months of annual operating expenses. The six month policy level,which is higher than many other municipalities,was established due to the Village not having the predictability of real estate tax revenue and the fact that most of its general revenues that are collected by the State(sales and telecommunications taxes)have a three month delay. This conservative policy ensures that the Village will have sufficient funds on hand to operate in an emergency situation as well having ix sufficient time to address any economic downtums. As of December 31, 2006, the cash and investment balance in the General Fund was equal to approximately 6.7 months of 2006 budgeted operating expenses. Major Initiatives In 2006, the Village completed the 2006 paving program, purchased several replacement vehicles, completed a major upgrade of the Village's telephone system, completed landscaping improvements at the Library, installed fencing around the Bath & Tennis Club pool, renovated the bunkers at the Oak Brook Golf Club, and completed several water main projects. Included in the 2007 budget is the 2007 paving project, computer hardware and software upgrades including replacement of the Village's major financial systems,outlays to enhance beautification within the Village, pond bank _ stabilization at the Golf Club, several water main projects, painting of the elevated water storage tanks, numerous municipal building improvements,and completion of the Oak Brook Commercial Revitalization Project. In later years the Five-Year Financial Plan includes the Village's$7.0 million obligation for its shah; of the 1-88!22^' Street Bridge Project, 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 street light cable on 22nd Street, significant maintenance expenses for Reservoir B, additional storage capacity for the water system,and improvements to the ponds and driving range at the Golf Club. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Oak Brook for its Comprehensive Annual ... Financial Report for the year ended December 31,2005. In order to be awarded a Certificate of Achievement, a govemmental 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 29 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. The preparation of this report could not be accomplished without the efficient and dedicated services of the entire Finance Department of the Village of Oak Brook. We wish to express our appreciation to those persons who have made possible the publication of this report, and to thank the President and members of the Board of Trustees for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. Darrell J.Langiffs Finance Director/Treasurer x FINANCIAL SECTION A INDEPENDENT AUDITOR'S REPORT McGladrey& Pullen Certified Public Accountants Independent Auditor's Report To The Honorable Village President Members of the Board of Trustees Village of Oak Brook, Illinois We have audited the accompanying financial statements of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund information of the Village of Oak Brook, Illinois, as of and for the year ended December 31, 2006,which collectively comprise the Village's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Village of Oak Brook, Illinois.Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion,the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund information of the Village of Oak Brook, Illinois,as of December 31, 2006 and the respective changes in financial position and cash flows,where applicable,thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 12 to the financial statements,the Net Assets of the Governmental Activities as of December 31, 2005 has been restated for an error in the application of accounting principles. The required supplementary information which includes management's discussion and analysis(pages 3—15), budgetary comparison information(page 63)and pension related information(pages 64 and 65)is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it. McGladrey&Pullen,LLP is a member firm of RSM International— an affiliation of separate and independent legal entities. - 1 - Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the Village of Oak Brook, Illinois. The accompanying information listed as supplemental data in the table of contents is presented for purposes of additional analysis,and is not a required part of the basic financial statements. Such 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. The introductory section and statistical information listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Schaumburg, Illinois June 4,2007 -2- Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) 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 6 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 4 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. 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 advance funding of equipment replacement. Because the Village's costs for these items relate to both governmental and business-type functions, the costs have been allocated to each type of activity where appropriate. - -4- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) 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 28 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 29 through 30 of this report. Infrastructure Assets Prior to 2003,the Village's largest group of assets(infrastructure assets-roads, bridges, storm sewers,etc.)were not reported nor depreciated in governmental financial statements. GASB Statement No. 34, which was implemented in 2003, requires that these assets be valued and reported within the Governmental column of the Government-wide Statements. Additionally, the Village must elect to (1) depreciate the assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity (modified approach). The Village has chosen to depreciate assets over their useful life. If a road project is considered maintenance-a recurring cost that does not extend the original useful life or expand its capacity-the cost of the project will be expensed. An "overlay" of a road will be considered maintenance whereas a "rebuild"of a road will be capitalized. _ Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 31 through 62 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 63 through 66 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 67 through 100 of this report. -5- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis (Continued) 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, 2006. GOVERNMENT-WIDE STATEMENTS Net Assets The following table reflects the condensed Statement of Net Assets for 2006 and 2005: Table 1 Statement of Net Assets As of December 31, 2006 and 2005 (in millions) Governmental Business-Type Total Primary Activities Activities Government 2006 2005 2006 2005 2006 2005 Current and Other Assets $ 21.7 $ 20.4 $ 5.6 $ 4.7 $ 27.3 $ 25.1 Capital Assets 65.7 66.9 24.3 24.8 90.0 91.7 Total Assets 87.4 87.3 29.9 29.5 117.3 116.8 Long-Term Liabilities 3.7 3.8 1.0 1.2 4.7 5.0 Other Liabilities 3.1 2.8 0.5 0.5 3.6 3.3 Total Liabilities 6.8 6.6 1.5 1.7 8.3 8.3 Net Assets: Invested in Capital Assets, Net of Debt 62.9 63.9 23.3 23.8 86.2 87.7 Unrestricted 17.7 16.8 5.1 4.0 22.8 20.8 Total Net Assets $ 80.6 $ 80.7 $ 28.4 $ 27.8 $ 109.0 $ 108.5 The Village's combined net assets increased by$0.5 million from$108.5 to$109.0 million during 2006. This increase in net assets is primarily attributed to business-type activities due implementation of a water rate increase effective January 1,2006. For more detailed information, see the Statement of Net Assets on page 16. -6- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) Activities The following table summarizes the revenue and expenses of the Village's activities for 2006 and 2005: Table 2 Changes in Net Assets For the Fiscal Year Ended December 31,206 and 2005 (in millions) Governmental Business-Type Total Primary Activities Activities Government 2006 2005 2006 2005 2006 2005 REVENUES Program Revenues: Charges for Services $ 2.0 $ 2.0 $ 8.0 $ 7.9 $ 10.0 $ 9.9 Grants and Contributions 0.3 2.8 - - 0.3 2.8 General Revenues: Sales and Local Use Taxes 14.2 13.0 - - 14.2 13.0 Utility Taxes 3.8 4.3 - - 3.8 4.3 Other Taxes 1.5 1.3 - - 1.5 1.3 Gain on Sale of Capital Assets - - - 1.1 - 1.1 Investment Income 0.7 0.3 0.2 0.1 0.9 0.4 Other 0.2 - - - 0.2 - Total Revenues 22.7 23.7 8.2 9.1 30.9 32.8 EXPENSES _ General Government 4.7 4.3 - - 4.7 4.3 Public Safety 12.0 11.3 - - 12.0 11.3 Public Works 4.1 4.6 - - 4.1 4.6 _ Culture and Recreation 1.9 1.7 - - 1.9 1.7 Waterworks System - - 3.9 4.3 3.9 4.3 Sports Core - - 3.7 3.5 3.7 3.5 Interest on Long-Term Debt 0.1 0.1 - - 0.1 0.1 Total Expenses 22.8 22.0 7.6 7.8 30.4 29.8 _ Change in Net Assets $ (0.1) $ 1.7 $ 0.6 $ 1.3 $ 0.5 $ 3.0 Total Net Assets $ 80.6 $ 80.7 $ 28.4 $ 27.8 $ 109.0 $ 108.5 -7- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) — 2006 Revenues By Source Other Other Taxes 3.6% — 4.8% Charges for Services Utility Taxes 32.2% — 12.4% Sales and Use Taxes Grants and _ 45.9% Contributions 1.1% 2006 Expenses by Function Sports Core General _ 12.1% Government Waterworks 15.8% System — 13.0% Culture & _ Recreation 6.4% Public Works Public Safety 13.4% 39.3% -8- _ (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) 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. 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 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. Changes in authorized personnel- changes in service demand may cause the Village Board to change 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, 2006, revenues totaled $30.9 million, a decrease of$1.9 million from 2005. The cause of this large decrease was that during 2005 the Village recognized significant one-time revenue of $2.4 million from grants received for the construction of two significant safety pathway projects. Ongoing revenue to the Village has in fact increased by$0.7 million after taking into account the one-time grant revenue. Revenues from sales and use taxes,the Village's largest single revenue source, amounted to more than$14.2 million or 45.9% of total revenue, an increase of$1.2 million or 9.2%from 2005. The large increase in sales tax revenue is due to strong sales from existing payers, addition of several new tax payers, and the correction of a problem at the _ State that resulted in the Village not receiving credit for sales tax revenue from one of the largest tax payers during the 2005 holiday season until April,2006. -9- (See independent auditor's report.) Village of Oak Brook,Illinois Management Discussion and Analysis(Continued) - Utility taxes, which includes the taxes imposed on electric, natural gas, and telecommunications services, were $3.8 million or 12.3%of total revenues. This represents a decline of$0.4 million from the comparable amount in 2005,and - is mostly attributable to reduced receipts from the Village's 5% Telecommunication Tax. This decline continues a negative trend experience over the last several years and is due to 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 2006,these revenues were$1.5 million or 4.8% of total revenues, which is an increase of$0.2 million from 2005. State shared revenues from income tax and personal property replacement taxes have increased due to the improved Illinois economy. Charges for services, which include revenue from water sales as well as user fees from the Oak Brook Sports Core, - were $10.0 million or 32.2%of total revenue, an increase of$0.1 million from 2005. Water system revenues as well as charges for services related to governmental activities were virtually unchanged from 2005 amounts. Sports Core revenues increased $0.1 million due primarily to increased food and beverage revenue at the Oak Brook Bath & - Tennis Club. Expenses - Expenses for the Village of Oak Brook amounted to a total of$30.4 million in 2006, an increase of$0.6 million from 2005. As required by GASB Statement No. 34, the expense totals include depreciation expense of$1.9 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$12.0 - million or 39.5% of total expenses, an increase of$0.7 million from 2005. Increased payroll, overtime, and benefit costs,fewer vacant staff positions, and increased vehicle replacement charges(these costs were only partially funded in 2005) are the significant causes of the increase. General government expenses were$4.7 million, an increase of - $0.3 million from 2005. Increased salary and benefit costs and increased legal expenses are the primary cause of the increase. Public works expenses were $4.1 million, a decrease of $0.5 million from 2005 due to reduced outlays related to safety pathways. Culture and recreation expenses were $1.9 million, which is an increase of$0.2 million - due to increased expenditures at the Oak Brook Public Library and a change to funding the Village's Independence Day program with Hotel/Motel Tax Fund revenue. For business-type activities, expenses for the waterworks system were$3.9 million or 14.5%of total expenses,which is a decrease of $0.4 million from 2005. The primary cause of this decrease is a reduction in the cost of water purchased from the DuPage Water Commission due to the wet summer in 2006 as well as ongoing improvements in - flow resulting from the leak detection program. Expenses for the Sports Core were $3.7 million, an increase of$0.2 million from 2006 due to rising personnel costs as well as increases in business levels. _ 10- (See independent auditors report.) –" Village of Oak Brook,Illinois Management Discussion and Analysis(Continued) FINANCIAL ANALYSIS OF THE VILLAGE'S 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, 2006,the governmental funds(as presented on the balance sheet on _ page 20) had a combined fund balance of$15.7 million, which is an increase of$0.5 million over the prior year. Of this increase, the General Fund had a slight increase of $0.1 million. The Infrastructure Fund, which is primarily supported by the Village's 0.25% non-home rule sales tax, had an increase of$0.2 million due to lower capital outlays as compared to 2005. The non-major governmental funds had an increase of$0.2 million since the Village did not apply motor fuel tax funds for the paving program this year and instead these funds will be utilized in a future year. Proprietary Funds Net assets for the Village's two business-type activities increased $0.6 million from 2005 (see pages 24 and 25). In the Water Fund, although the number of gallons billed declined due to wet summer weather, revenue from the sale of water was essentially flat due to a water rate increase effective January 1, 2006. The weather as well as a reduced wholesale water rate from the DuPage Water Commission resulted in decreased water supply costs as compared to 2005. These factors are the primary cause of increase in net assets in the Water Fund of$0.7 million. In the Sports _ Core Fund, net assets declined by $0.1 due to increased operating costs as well as weather factors negatively impacting golf course revenue. In 2003, the Village Board policy was to require budget transfers when an individual program or fund exceeds its — budget in total. In addition to these program transfers, beginning in 2004 the Village Board approved an ordinance requiring a budget transfer for any individual line item account that exceeded its budget by more than 110%. In October, 2006 this policy was further revised by eliminating the 110% threshold and instead requiring a line item budget transfer for any variance exceeding$10,000 in a personnel series account and variances exceeding$2,500 in all other accounts. In order to stay in compliance with these policies, the Village Board amended the original budget on fifteen occasions during the year. In addition to these transfers, the original budget in total for the Hotel/Motel Tax Fund was increased by$75,000 in order to budget funds for the Village's Independence Day celebration. - 11 - (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) _ Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2005 — (in millions) Original Amended — Budget Budget Actual REVENUES AND TRANSFERS — Intergovernmental $ 11,978,000 $ 11,978,000 $ 12,669,874 Utility Taxes 4,560,000 4,560,000 3,822,020 Licenses&Permits 986,665 986,665 858,401 — Charges for Services 776,500 776,500 835,390 Other 1,001,250 1,001,250 976,308 Total Revenues and Transfers 19,302,415 19,302,415 19,161,993 EXPENDITURES General Government 5,743,495 5,591,980 5,052,804 Public Safety 11,877,450 12,023,825 11,990,727 Public Works 743,015 743,015 654,226 — Culture and Recreation 1,390,385 1,395,525 1,383,352 Total Expenditures and Transfers 19,754,345 19,754,345 19,081,109 Change in Fund Balance $ (451,930) $ (451,930) $ 80,884 Intergovernmental revenues were over budget due to increased sales tax revenue as well as increased per capita revenues received for the State. Utility tax revenue was under budget due to declines in the amount of telecommunications taxes that the Village receives as well as seasonal factors impacting the utility taxes on electricity and natural gas. Licenses and permits were under budget since implementation of a new business license program, which was budgeted in 2006, was deferred to 2007. Revenue from charges for services was over budget due to increased activity in this area. — Actual expenditures were 98.06% of the original and revised budget. None of the variances underlying these totals are individually significant. — - 12- (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) Capital Assets The following schedule reflects the Village's capital asset balances as of December 31, 2006 and 2005. Table 4 Capital Assets As of December 31, 2006 and 2005 (in millions) Governmental Business-Type Activities Activities Total 2006 2005 2006 2005 2006 2005 Land and Land Right of Way $ 32.3 $ 32.3 $ 8.3 $ 8.3 $ 40.6 $ 40.6 Buildings and Land Improvements 18.8 18.7 8.6 8.5 27.4 27.2 Machinery, Vehicles, and Equipment 8.0 7.2 4.7 5.1 12.7 12.3 Infrastructure 32.7 32.7 15.8 15.5 48.5 48.2 Construction in Progress - - 0.1 0.1 0.1 0.1 91.8 90.9 37.5 37.5 129.3 128.4 Less: Accumulated Depreciation (26.1) (24.0) (13.2) (12.7) (39.3) (36.7) Total $ 65.7 $ 66.9 $ 24.3 $ 24.8 $ 90.0 $ 91.7 At year-end, the Village's investment in capital assets (net of accumulated depreciation) for both its governmental and business-type activities was $90.0 million, a decrease of$1.7 million from 2005 (see Note 5 in the Notes to the _ Financial Statements for further information regarding capital assets). Major capital asset events during 2006 included the following: • Six Police vehicles, two Public Works vehicles, a new Village-wide telephone system, a door security system for the Police Department, and landscaping improvements for the Library are among additions totaling $0.9 million that were purchased for use in governmental activities. • For business-type activities, several water mains were replaced, two golf course maintenance equipment items were replaced, and new fencing around the Bath &Tennis Club pool was installed. - 13- (See independent auditor's report.) Village of Oak Brook, Illinois Management 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$127,816,578 based on January 1, 2005 EAV of$1,481,931,334. As of December 31, — 2006, the Village has $3,620,000 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, 2006 Governmental Business-Type Activities Activities Total General Fund Certificates: — Series 1999 $ - $ 285,000 $ 285,000 Series 2001 2,735,000 - 2,735,000 Series 2003(Refunding) - 600,000 600,000 Total $ 2,735,000 $ 885,000 $ 3,620,000 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. - 14- _ (See independent auditor's report.) Village of Oak Brook, Illinois Management Discussion and Analysis(Continued) In the early 2000's, declines in the State economy as well as the relocation of several taxpayers to other jurisdictions resulted in a significant decline in sales tax revenue. The cumulative effect of these negative revenue events eventually resulted in the Village Board asking 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 2006 the Village recognized $2.6 million of revenue from this tax. By statute the use of the new tax is restricted to public works expenditures and infrastructure projects. This has allowed the Village to 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. During 2006 the Village engaged a consultant to begin work on the Oak Brook Commercial Areas Revitalization Plan, which is designed to look at improving the commercial areas within the Village. As part of this project it is expected that the Village will be required to make additional investments in the area of infrastructure. The long-term goal of this project is to encourage redevelopment and increase the Village's sales tax base. Also during 2006 the Village became aware of plans by the Illinois State Toll Highway Authority to widen the 1-88 bridge over 22nd Street. As part of this project,the portion of 22nd Street that is under the bridge will be widened from 2 lanes to 3 lanes in both directions. This is a long awaited project that addresses a major traffic problem in the Village and is considered a key component towards encouraging redevelopment. As part of 1999 agreement with the Illinois Department of Transportation, the Village is required to fund 1/3 of the cost of this project. Based on recent estimates the Village share is expected to be approximately$7.0 million. In order to fund the infrastructure needs of the Oak Brook Commercial Areas Revitalization Plan and the Village's financial obligation for the 1-88/22nd Bridge project, the Village Board directed that a referendum question be placed on the ballot for the April 2007 election that authorizes an increase in non-home rule sales tax by an additional 0.25%. This measure was approved by 59% of the voters and will result in additional revenue of approximately $2.6 million annually in order to fund these two important projects. _ During 2006 the Village completed a long-range study in improve and beautify many areas in the Village. The initial implementation plan is targeted in the commercial areas of the Village that have hotels. In order to fund this portion of the implementation, the Village Board created a Hotel Beautification District and increased the hotel/motel tax from 1%to 3%to fund this initiative. During 2005 the Village approved a redevelopment agreement with a developer whereby the Village has agreed to reimburse the developer for certain costs associated with the redevelopment project area within the tax increment -- financing (TIF) #1 Butterfield-Meyers Road Redevelopment Project Area (See Note 10). The reimbursement would be in the form of a note payable from the incremental real estate taxes and 20%of the incremental sales taxes within the project area. Once the project is completed (likely in 2008), it is expected that the Village will receive in excess of $600,000 annually in additional sales tax revenue. 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. -15- (See independent auditor's report.) Village of Oak Brook, Illinois Statement of Net Assets — December 31, 2006 Governmental Business-Type Activities Activities Total _ Assets Current _ Cash and investments $ 15,775,964 $ 4,474,725 $ 20,250,689 Receivables (net of allowance for uncollectible) Sales taxes 3,816,764 - 3,816,764 — Utility taxes 668,323 - 668,323 Accounts 128,839 - 128,839 Billed and unbilled water sales - 387,796 387,796 Allotments 21,164 - 21,164 Accrued interest 14,642 3,536 18,178 _ Other 384,386 116,796 501,182 Advances to(from)other funds 1,290,000 (1,290,000) - Internal balances (495,226) 495,226 - _ Inventories 53,044 175,871 228,915 Total current assets 21,657,900 4,363,950 26,021,850 Noncurrent — Water purchase rights - 1,193,573 1,193,573 Capital assets _ Non-depreciable 32,304,134 8,338,305 40,642,439 Depreciable, net of accumulated depreciation 33,393,105 15,961,189 49,354,294 Total noncurrent assets 65,697,239 25,493,067 91,190,306 — Total assets $ 87,355,139 $ 29,857,017 $ 117,212,156 (Continued) See Notes to Financial Statements. — - 16 - Village of Oak Brook, Illinois Statement of Net Assets-Continued December 31,2006 Governmental Business-Type Activities Activities Total Liabilities Current Accounts payable $ 949,498 $ 222,217 $ 1,171,715 Accrued payroll 590,210 80,642 670,852 Accrued interest 10,680 5,537 16,217 Claims payable 147,000 - 147,000 Deposits 1,005,020 60,445 1,065,465 Deferred revenue 352,634 69,683 422,317 '- Long-term liabilities Due within one year 1,076,592 291,874 1,368,466 Due in more than one year 2,600,131 762,195 3,362,326 Total liabilities 6,731,765 1,492,593 8,224,358 Net Assets _ Invested in capital assets, net of related debt 62,962,239 23,332,116 86,294,355 Unrestricted 17,661,135 5,032,308 22,693,443 Total net assets $ 80,623,374 $ 28,364,424 $ 108,987,798 See Notes to Financial Statements. - 17- Village of Oak Brook,Illinois Statement of Activities _ Year Ended December 31,2006 Program Revenues — Operating Charges for Grants and — Functions/Programs Expenses Services Contributions Governmental activities — General government $ 4,657,682 $ 1,202,545 $ - Public safety 11,979,841 742,171 76,556 Public works 4,113,563 11,858 250,481 — Culture and recreation 1,938,623 29,548 - Interest 141,092 - - Total governmental activities 22,830,801 1,986,122 327,037 — Business-type activities Waterworks system 3,916,400 4,427,969 - — Sports core 3,690,871 3,563,421 Total business-type activities 7,607,271 7,991,390 - Total $ 30,438,072 $ 9,977,512 $ 327,037 General revenues — Taxes Replacement Sales and use — Utility Hotel/motel Income Other Investment income Miscellaneous — Total general revenues Change in net assets Net assets, as restated-beginning Net assets-ending See Notes to Financial Statements. - 18- — Net(Expense),Revenue and Changes in Net Assets Capital Governmental Business-Type Grants Activities Activities Total _ $ $ (3,455,137) $ - $ (3,455,137) (11,161,114) - (11,161,114) 24,158 (3,827,066) - (3,827,066) - (1,909,075) - (1,909,075) - (141,092) - (141,092) 24,158 (20,493,484) - (20,493,484) - - 511,569 511,569 (127,450) (127,450) - - 384,119 384,119 $ 24,158 (20,493,484) 384,119 (20,109,365) 275,162 - 275,162 14,213,057 - 14,213,057 _ 3,822,020 - 3,822,020 416,507 - 416,507 712,493 - 712,493 85,814 - 85,814 694,977 206,179 901,156 216,532 - 216,532 20,436,562 206,179 20,842,741 (56,922) 590,298 533,376 80,680,296 27,774,126 108,454,422 $ 80,623,374 $ 28,364,424 $ 108,987,798 -19- Village of Oak Brook,Illinois - Balance Sheet-Governmental Funds December 31,2006 - Nonmajor Total General Governmental Governmental Fund Infrastructure Funds Funds - Assets Cash and investments $ 9,755,951 $ 1,507,833 $ 787,040 $ 12,050,824 - Receivables Sales taxes 2,998,722 818,042 - 3,816,764 Utility taxes 668,323 - - 668,323 - Accounts 128,839 - - 128,839 Allotments - - 21,164 21,164 _ Accrued interest 8,944 1,460 389 10,793 Other 199,756 67,896 56,419 324,071 Advances to other funds 1,290,000 - - 1,290,000 - Inventories 2,073 - - 2,073 Total assets $ 15,052,608 $ 2,395,231 $ 865,012 $ 18,312,851 Liabilities Accounts payable $ 277,484 $ 350,622 $ 68,954 $ 697,060 Accrued payroll 536,833 46,905 - 583,738 Deposits payable 991,756 13,264 - 1,005,020 Deferred revenue 222,586 65,018 - 287,604 - Total liabilities 2,028,659 475,809 68,954 2,573,422 Fund Balances Reserved for inventories 2,073 - - 2,073 Reserved for advances 1,290,000 - - 1,290,000 Unreserved-undesignated Undesignated-General fund 11,731,876 - - 11,731,876 - Undesignated-Special revenue funds - - 780,902 780,902 Undesignated-Capital projects funds - 1,919,422 15,156 1,934,578 - Total fund balances 13,023,949 1,919,422 796,058 15,739,429 Total liabilities and fund balances $ 15,052,608 $ 2,395,231 $ 865,012 $ 18,312,851 See Notes to Financial Statements. -20- Village of Oak Brook,Illinois Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets December 31,2006 Total fund balances-governmental funds $ 15,739,429 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities,excluding the internal service fund capital assets below, are not financial resources and, therefore, are not reported in the governmental funds. 63,575,024 Interest payable is not due and payable in the current period and, therefore, are not reported in the governmental funds. (10,680) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: Installment contracts payable (2,735,000) — Compensated absences payable (935,628) A portion of the net assets of the internal service funds are included in the governmental activities in the Statement of Net Assets. Capital assets 2,122,215 Other net assets 2,868,014 Net assets of governmental activities $ 80,623,374 See Notes to Financial Statements. -21 - Village of Oak Brook,Illinois Statement of Revenues,Expenditures and Changes in Fund Balances - - Governmental Funds Year Ended December 31,2006 Nonmajor Total General Governmental Governmental - Fund Infrastructure Funds Funds Revenues - Intergovernmental $ 12,669,874 $ 24,158 $ 302,659 $ 12,996,691 Non-home rule sales tax - 2,641,030 - 2,641,030 Utility taxes 3,822,020 - - 3,822,020 - Hotel/motel taxes - - 416,507 416,507 Licenses and permits 858,401 - - 858,401 Charges for services 835,390 - - 835,390 - Fines and penalties 292,331 - - 292,331 Investment income 468,441 66,335 27,814 562,590 Donations 25,311 - - 25,311 - Miscellaneous 190,225 - - 190,225 Total revenues 19,161,993 2,731,523 746,980 22,640,496 Expenditures Current - General government 5,052,804 - - 5,052,804 Public safety 11,990,727 - 57,094 12,047,821 Public works 654,226 1,653,479 30,914 2,338,619 - Culture and recreation 1,383,352 - 472,162 1,855,514 Capital outlay - 855,582 - 855,582 Total expenditures 19,081,109 2,509,061 560,170 22,150,340 - Net change in fund balances 80,884 222,462 186,810 490,156 Fund balances-beginning 12,943,065 1,696,960 609,248 15,249,273 Fund balances-ending $ 13,023,949 $ 1,919,422 $ 796,058 $ 15,739,429 _ See Notes to Financial Statements. -22- Village of Oak Brook, Illinois Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31,2006 Net change in fund balances-total governmental funds $ 490,156 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures, however, they are capitalized and depreciated in the Statement of Activities. 399,661 _ The repayment of long-term debt is reported as an expenditure when due in govermental funds but as a reduction of principal outstanding in the Statement of Activities. 235,000 Some expenses reported in the Statement of Activities do not require the use of current financial resources and,therefore, are not reported as expenditures in governmental funds. These activities consist of: Depreciation, including internal service funds (1,957,864) Change in compensated absences (52,230) Change in interest payable (2,061) The change in net assets of certain activities of internal service funds, excluding depreciation, is included in governmental activities. 830,416 Change in net assets of governmental activities $ (56,922) See Notes to Financial Statements. -23- Village of Oak Brook,Illinois Statement of Net Assets•Proprietary Funds _ December 31,2006 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service _ Fund Fund Total Funds Assets Current Cash and investments $ 4,200,999 $ 273,726 $ 4,474,725 $ 3,725,140 Receivables Billed and unbilled water sales 387,796 - 387,796 - Accrued Interest 2,951 585 3,536 2,584 Other 13,260 103,536 116,796 47,725 _ Inventories - 175,871 175,871 50,971 Prepaid expense - - - 13,855 Total current assets 4,605,006 553,718 5,158,724 3,840,275 Capital Assets Non-depreciable 261,840 8,076,465 8,338,305 - _ Depreciable,net of accumulated depreciation 10,868,640 5,092,549 15,961,189 2,122,215 Total capital assets 11,130,480 13,169,014 24,299,494 2,122,215 Noncurrent Water purchase rights 1,193,573 - 1,193,573 - Total assets $ 16,929,059 $ 13,722,732 $ 30,651,791 $ 5,962,490 (Continued) — See Notes to Financial Statements. -24- Village of Oak Brook,Illinois Statement of Net Assets-Proprietary Funds-Continued December 31,2006 Governmental _ Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service Fund Fund Total Funds Liabilities Current Accounts payable $ 173,322 $ 48,895 $ 222,217 $ 292,059 Accrued payroll 31,394 49,248 80,642 6,472 Accrued interest 5,537 5,537 - Compensated absences payable 31,806 54,885 86,691 6,095 Deposits - 60,445 60,445 - Deferred revenue 13,260 56,423 69,683 65,030 Claims payable - - - 147,000 Installment contract payable - 165,000 165,000 - Capital lease payable - 40,183 40,183 - Total current liabilities 249,782 480,616 730,398 516,656 Noncurrent Advances from other funds - 1,290,000 1,290,000 - Installment contract payable - 720,000 720,000 - Capital lease payable - 42,195 42,195 - Total noncurrent liabilities - 2,052,195 2,052,195 - Total liabilities 249,782 2,532,811 2,782,593 516,656 Net Assets Invested in capital assets,net of related debt 11,130,480 12,201,636 23,332,116 2,122,215 Unrestricted 5,548,797 (1,011,715) 4,537,082 3,323,619 Total net assets $ 16,679,277 $ 11,189,921 27,869,198 $ 5,445,834 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 495,226 Net assets of business-type activities $ 28,364,424 See Notes to Financial Statements. -25- Village of Oak Brook,Illinois Statement of Revenues,Expenses and Changes in Net Assets- Proprietary Funds Year Ended December 31,2006 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service Fund Fund Total Funds Operating revenues Charges for services $ 4,427,969 $ 3,563,421 $ 7,991,390 $ 3,998,661 _ Total operating revenues 4,427,969 3,563,421 7,991,390 3,998,661 Operating expenses Operations 3,501,887 3,342,200 6,844,087 524,433 Claims and insurance - - - 2,738,372 Miscellaneous - - - 15,952 Depreciation and amortization 455,188 313,860 769,048 357,452 — Total operating expenses 3,957,075 3,656,060 7,613,135 3,636,209 Operating income(loss) 470,894 (92,639) 378,255 362,452 — Nonoperating revenues(expenses) Investment income 176,624 22,313 198,937 158,438 — Gain on sale of capital assets - - - 3,376 Interest expense - (34,811) (34,811) - Total nonoperating revenues(expenses) 176,624 (12,498) 164,126 161,814 — Change in net assets 647,518 (105,137) 542,381 524,266 Net assets-beginning 16,031,759 11,295,058 4,921,568 — Net assets-ending $ 16,679,277 $ 11,189,921 $ 5,445,834 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 47,917 Change in net assets of business-type activities $ 590,298 See Notes to Financial Statements. -26- Village of Oak Brook,Illinois Statement of Cash Flows— Proprietary Funds Year Ended December 31,2006 Governmental Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service Fund Fund Total Funds Cash flows from operating activities Receipts from internal services transactions $ - $ - $ - $ 3,142,024 Receipts from customers and users 4,375,537 3,420,867 7,796,404 - '— Receipts from miscellaneous revenue 42,487 121,091 163,578 886,316 Payments to suppliers (2,934,115) (1,484,157) (4,418,272) (3,057,059) Payments to employees (641,488) (1,823,581) (2,465,069) (161,420) Net cash from operating activities 842,421 234,220 1,076,641 809,861 Cash flows from capital and related financing activities Capital assets purchased (289,881) (82,332) (372,213) (156,994) Proceeds from sale of capital assets - 3,376 Principal paid on installment contract payable (160,000) (160,000) - Principal paid on capital lease payable (38,265) (38,265) - Interest paid - (36,142) (36,142) Net cash from capital and related financing activities (289,881) (316,739) (606,620) (153,618) Cash flows from investing activities _ Purchase of investments (51,983) - (51,983) (45,523) Sale of investments - 25,820 25,820 - Interest received 176,563 22,388 198,951 158,385 Net cash from investing activities 124,580 48,208 172,788 112,862 Net increase(decrease)in cash and cash equivalents 677,120 (34,311) 642,809 769,105 Cash and equivalents-beginning 2,261,269 57,578 2,318,847 1,850,322 Cash and equivalents-ending $ 2,938,389 $ 23,267 $ 2,961,656 $ 2,619,427 Cash and investments Cash and cash equivalents $ 2,938,389 $ 23,267 $ 2,961,656 $ 2,619,427 Investments 1,262,610 250,459 1,513,069 1,105,713 Total cash and investments $ 4,200,999 $ 273,726 $ 4,474,725 $ 3,725,140 Noncash transactions Unrealized gain on investments $ 384 $ 76 $ 460 $ 336 (Continued) -27- Village of Oak Brook,Illinois Statement of Cash Flows– Proprietary Funds-Continued Year Ended December 31,2006 — Governmental — Business-Type Activities-Enterprise Funds Activities Waterworks Sports Internal System Core Service _ Fund Fund Total Funds Reconciliation of operating income(loss)to net cash provided by operating activities — Operating income(loss) $ 470,894 $ (92,639) $ 378,255 $ 362,452 Depreciation and amortization 455,188 313,860 769,048 357,452 — Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Changes in assets and liabilities: — Accounts receivable (12,158) (12,158) 40,734 Other receivable 4,788 (17,067) (12,279) - Inventories - 1,410 1,410 (5,492) — Prepaid expenses - - - (13,855) Accounts payable (67,750) 7,334 (60,416) 185,057 Accrued payroll and compensated absences (5,966) 16,094 10,128 (6,287) — Deposits payable - 9,624 9,624 - Deferred revenue (2,575) (4,396) (6,971) 2,800 Claims payable - - - (113,000) — Total adjustments (83,661) 12,999 (70,662) 89,957 Net cash provided by operating activities $ 842,421 $ 234,220 $ 1,076,641 $ 809,861 — See Notes to Financial Statements. -28- Village of Oak Brook, Illinois Statement of Fiduciary Net Assets December 31, 2006 Assets Cash $ 1,116,088 Investments Illinois Funds 156,287 Certificates of deposit 98,594 U.S.treasury securities 6,113,104 U.S. agency securities 16,947,447 State and local obligations 1,844,035 Mutual funds 21,496,739 Accrued interest receivable 220,217 Prepaid items 125 Total assets 47,992,636 Liabilities Accounts payable 10,731 Net Assets Held in Trust for Pension Benefits $ 47,981,905 See Notes to Financial Statements. -29- Village of Oak Brook, Illinois — Statement of Changes in Fiduciary Net Assets-Pension Trust Funds — Year Ended December 31, 2006 Additions Contributions Employer $ 1,134,138 — Participants 564,977 1,699,115 Investment income Net appreciation in fair — value of investments 2,752,690 Interest income 1,328,822 Less investment expense (70,907) — 4,010,605 Total additions 5,709,720 — Deductions Administration 53,153 — Pension benefits and refunds 2,443,626 Transfers to other pension funds 36,791 — Total deductions 2,533,570 Change in net assets 3,176,150 — Net assets-beginning 44,805,755 Net assets-ending $ 47,981,905 See Notes to Financial Statements. -30- — Village of Oak Brook, Illinois Notes to Financial Statements Note 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 American(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. 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 by 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 possess 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. -- 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 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 party 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. 31 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 1. Summary of Significant Accounting Policies(Continued) 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. — 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. Government-wide and Fund Financial Statements Government-wide Financial Statements:The government-wide Statement of Net Assets and Statement of Activities report the overall financial activity of the Village. Eliminations have been made to minimize the double- counting of internal activities of the Village. The financial activities of the Village consist of governmental activities, which are primarily supported by taxes and intergovernmental revenues,and business-type activities,which rely to a significant extent on fees and charges for services. The Statement of Net Assets presents the Village's non-fiduciary assets and liabilities with the difference reported in three categories: — Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds and other debt that are attributable to the acquisition, construction, or improvement of those assets. Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, — grantors,contributors, and the like,or imposed by law through constitutional provisions or enabling legislation. Unrestricted net assets consist of net assets that do not meet the criteria of the two preceding categories. - - 32 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) The Statement of Activities demonstrates the degree to which the direct expenses of a given function (i.e.general government, public safety etc.)are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include(a)charges paid by the recipients of goods or services offered by the programs(including fines and fees), and(b)grants and contributions that are restricted to meeting the operational requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fiduciary funds are excluded from the government-wide financial statements. Fund Financial Statements:Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The fund financial statements provide information about the Village's funds. The emphasis of fund financial statements is on major governmental funds,each displayed in a separate column. The Village administers the following major governmental funds: _ General Fund—This 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. Infrastructure Fund—This 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 administers the following major proprietary funds: Waterworks System Fund—This fund accounts for the revenue and expenses relative to the operation of the water utility Sports Core Fund— This 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 the Firefighters' Pension Fund. 33 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 1. Summary of Significant Accounting Policies (Continued) Measurement Focus and 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 nonoperating. 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. 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 expenditures/expenses 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. — When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first,then unrestricted resources as they are needed. - - 34 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) Cash and Cash Equivalents For purposes of the statement of cash flows,the Village considers all highly liquid investments(including restricted assets)with 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. Inventories and Prepaid Items 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. Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items/expenses. 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. Infrastructure assets acquired prior to the implementation of GASB Statement No. 34 are reported on the financial statements. The cost of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend the asset lives, are not capitalized. - 35 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) Capital Assets(Continued) 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 5-20 Equipment 5-20 — Vehicles 2-20 Infrastructure 20-75 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. 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. 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 expenditureslexpenses 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. - 36 - Village of Oak Brook, Illinois Notes to Financial Statements Note 1. Summary of Significant Accounting Policies(Continued) 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 noncurrent portion of interfund loans). All other outstanding balances between funds are reported as"due to/from other funds." Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as"internal balances." 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. Long-Term Obligations '- In the government-wide financial statements and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund financial statements. Bond premiums and discounts, as well as 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. In the fund financial statements,governmental funds 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 expenditures. Fund Balance/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. - 37 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 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 and the Foreign Fire Insurance Tax Fund. Separately held cash and investments for the Foreign Fire Insurance Tax Fund, as well as each fund's portion of this pool are included on the Statement of Net Assets as"cash and investments." The deposits and investments of the pension trust funds are held separately from those of other — funds. The Village's cash on hand of$4,100 has been excluded from the amounts shown below. Permitted Deposits and Investments–The Village's investment policy allows for deposits/investments 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 agreement 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. The Police Pension Fund and Firefighters' Pension Fund may also invest in certain non-U.S.obligations, Illinois municipal corporations tax anticipation warrants, veteran's loans, obligations of the State of Illinois and its political subdivisions, insurance — company general and separate accounts, mutual funds, and equity securities. Deposits — To guard against credit risk for deposits with financial institutions,the Village and Police and Firefighters' Pension Fund investment policies require that deposits with financial institutions in excess of FDIC insurance limits be — collateralized in an amount between 110%and 115%of the value of the investment depending on the type of security pledged as collateral. In addition,the collateral must be held by a third party acting as the agent for the Village or Pension Funds. At year-end the carrying amount of the Village's deposits totaled$447,448 and the bank — balances totaled $1,314,963. The Police and Fire Pension Funds' deposits totaled $152,148 and the bank balances totaled $198,493. All bank balances are covered by federal depository insurance or by collateral held by the Village's agent in the Village's name. Custodial Credit Risk–Deposits. Custodial credit risk is the risk that in the event of a bank failure,the Village's deposits may not be returned to it. The Village's policy requires collateralization of all deposits in excess of FDIC insured limits. — - 38 - — Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Deposits and Investments (Continued) Investments The following schedule reports the fair values and maturities (using the segmented time distribution method) for the Village's investments at December 31, 2006: Investment Maturities(in Years) Fair Less Than Greater Than Investment Type Value 1 Year 1-5 Years 6-10 Years 10 Years U.S.Agencies $ 1,998,775 $ 1,998,775 $ - $ $ IMET 5,211,241 - 5,211,241 - Mutual Fund Money Market Accounts 41,691 41,691 - Illiinois Funds 12,551,534 12,551,534 - - Total investments $ 19,803,241 $ 14,592,000 $ 5,211,241 $ $ As of December 31, 2006, the Police Pension Fund had the following investments and maturities. Investment Maturities(in Years) Fair Less Than Greater Than Value 1 Year 1-5 Years 6-10 Years 10 Years U.S.Agencies $ 9,646,056 $ 1,006,563 $ 4,347,889 $ 3,202,624 $ 1,088,980 U.S.Treasuries 3,475,420 - 1,265,625 1,211,863 997,932 State and Local Obligations 949,012 530,201 418,811 - Negotiable Certificate of Deposit 98,594 - 98,594 - Money Market Mutual Funds 337,008 337,008 - Illinois Funds 26,033 26,033 - - - Total Investments $ 14,532,123 $ 1,369,604 $ 6,242,309 $ 4,833,298 $ 2,086,912 As of December 31, 2006,the Firefighters' Pension Fund had the following investments and maturities. Investment Maturities(in Years) Fair Less Than Greater Than Value 1 Year 1-5 Years 6-10 Years 10 Years U.S.Agencies $ 7,301,391 $ 1,380,367 $ 3,336,457 $ 1,446,156 $ 1,138,411 U.S.Treasuries 2,637,684 - 304,219 1,703,394 630,071 State and Local Obligations 895,023 - 437,886 457,137 - Money Market Mutual Funds 626,932 626,932 - - Illinois Funds 130,254 130,254 - - - Total Investments $ 11,591,284 $ 2,137,553 $ 4,078,562 $ 3,606,687 $ 1,768,482 - 39 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 2. Deposits and Investments (Continued) Investments(Continued) GASB 40–Operating Funds — In accordance with its investment policy,the Village limits its exposure to interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed within a one-year period. The portion of the investment portfolio that is invested with the Illinois Metropolitan Investment Fund (IMET)has an — average maturity of 1.67 years and is subject to interest rate risk. The IMET Fund's duration,which is a measure of interest rate risk, is 1.53 years as of December 31, 2006. This means that if interest rates were to increase by 1%, the value of the]MET Fund would decrease by approximately 1.5%; conversely, if interest rates were to decrease by — 1%,the value of the IMET Fund would increase by approximately 1.5%. The Village limits its exposure to credit risk, which is the risk that the issuer of a debt security will not pay its par — value upon maturity. This is done primarily by investing in securities issued by the United States Government or by investing in securities issued by agencies of the United States Government, which are implicitly guaranteed by the United States Government. — The Illinois Funds and the IMET fund are both "AAA" rated funds and have minimal exposure to credit risk. The Mutual Fund Money Market Accounts are not rated. In order to limit the exposure to concentration of credit risk, the — Village's Investment Policy limits investments in any one financial institution to 25%,exclusive of securities guaranteed by the full faith and credit of the United States Government or obligations of agencies of the United States Government. — At December 31, 2006,the Village had greater than five percent of its overall portfolio invested in notes of the Federal Home Loan Mortgage Corporation(10.1%), Illinois Funds(63.4%), and the IMET Fund(26.3%). The — investment policy does not include any limitations as to how much the Village may hold in Illinois Funds, IMET,or U.S. Treasury and Agency securities. The Village limits its exposure to custodial credit risk by utilizing an independent, third party institution, selected by — the Village, to act as custodian for its securities and collateral. For an investment, custodial risk is the risk that, in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. — GASB 40–Police Pension Fund State statutes, as well as the investment policy of the Police Pension Fund provide that the Fund may invest up to 45%of the investment portfolio in equity mutual funds and the remaining 55%of the portfolio in fixed income securities. The Police Pension Fund has hired a fund manager, MB Financial,to advise and to manage both the _ fixed income and equity mutual fund portfolios. The Police Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity in order to fund current benefit payments while at the same time extending the average maturity of the investments due to the longer term nature of the projected fund liabilities. As of December 31, 2006,the fixed income portfolio had a duration of 4.30 years and is subject to interest rate risk. With a duration of 4.30 years, this means that if interest rates were to increase by 1%, the value of the fixed income investments would decrease by approximately 4.30%; conversely, if interest rates were to decrease by 1%, the value of the fixed income investments would increase by approximately 4.30%. - 40 - Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Deposits and Investments(Continued) Investments (Continued) GASB 40—Police Pension Fund(Continued) The Police Pension Fund strives to limit its exposure to credit risk,which is the risk that the issuer of a debt security will not pay the par value upon maturity. This is controlled by primarily investing in securities issued by the United States Government, securities issued by agencies of the United States Government that carry an implicit guarantee, or high quality state or local obligations. United States Government and agency securities are considered to be "AAA"rated and are generally considered free of credit risk due to the stability of the United States Government. For investments in state and local obligations,44.1%are considered to be"AAA"and 55.9%have been rated"Aa3."The Money Market Mutual Funds are not rated. At December 31, 2006,the Police Pension Fund had greater than five percent of its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau(12.8%), Federal Home Loan Mortgage Corporation(8.9%)and Federal Home Loan Bank(39.3°/x). The investment policy does not include any limitations on how much U.S. Treasury or Agency securities can be held in the portfolio. The Police Pension Fund invests up to 45%of its investments in equity mutual funds. The Fund's investment policy defines the strategy in which the Pension Board follows for the equity investments. The Pension Fund diversifies its equity holdings by owning several different mutual funds allocated among the following asset classes subject to the percentage limitations indicated: Normal Range of Allocation Allocation U.S. Large Cap Stocks(may include some 55% +l- 25% Mid-Cap Stocks) U.S. Small-Cap Stocks(may include some 25% +/- 20% _ Mid-Cap Stocks) Foreign Securities 10% +/- 10% Alternative Investments(including Real Estate) 10% +l- 10% The Police Pension Fund limits its exposure to custodial risk by utilizing the Trust Department of MB Financial to act as custodian for its fixed income securities. For an investment,custodial risk is the risk that, in the event of the failure of the counterparty,the Police Pension Board will not be able to recover the value of its investments that are in the possession of an outside party. GASB 40—Firefighters' Pension Fund State statutes, as well as the investment policy of the Firefighters' Pension Board provide that the Fund may invest up _ to 45%of the investment portfolio in equity mutual funds and the remaining 55%of the portfolio in fixed income securities. The Firefighters' Pension Fund has hired a fund manager, MB Financial,to advise and manage the fixed income investments. For equity mutual fund investments,the Firefighters' Pension Fund utilizes the services of Merrill Lynch. - 41 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 2. Deposits and Investments(Continued) Investments(Continued) GASB 40–Firefighters' Pension Funds(Continued) The Firefighters' Pension Fund limits its exposure to interest rate risk by structuring the portfolio to provide liquidity in order to fund current benefit payments while at the same time extending the average maturity of the investments due to the longer term nature of the projected fund liabilities. As of December 31,2006,the fixed income portfolio had a — duration of 4.24 years and is subject to interest rate risk. With a duration of 4.24 years,this means that if interest rates were to increase by 1%,the value of the fixed income investments would decrease by approximately 4.2%; conversely, if interest rates were to decrease by 1%,the value of the fixed income investments would increase by — approximately 4.2%. The Firefighters' Pension Fund strives to limit its exposure to credit risk,which is the risk that the issuer of a debt — security will not pay the par value upon maturity. This is controlled by primarily investing in securities issued by the United States Government, securities issued by agencies of the United States Government that carry an implicit guarantee,or high quality state or local obligations. United States Government and agency securities are considered to be"AAA"rated and are generally considered free of credit risk due to the stability of the United States Government. For investments in state and local obligations, 100%are considered to be"AAA"rated investments. The Money Market Mutual Funds are not rated. — At December 31,2006,the Firefighters' Pension Fund had greater than five percent of its fixed income portfolio invested in obligations of the Federal Farm Credit Bureau(21.2%)and Federal Home Loan Bank(32.7%). The investment policy does not include any limitations on how much U.S.Treasury or Agency securities can be held in the — portfolio. The Firefighters' Pension Fund invests up to 45%of its investments in equity mutual funds. The Fund's investment — policy defines the strategy in which the Pension Board follows for the equity investments. The Pension Fund diversifies its equity holdings by owning several different mutual funds allocated among the following asset classes subject to the percentage limitations indicated: — Normal Range of Allocation Allocation — U.S. Large Cap Stocks 50% +/- 10% U.S. Mid-Cap Stocks 20% +/- 10% U.S. Small-Cap Company Stocks 15% +/- 10% Foreign Securities 10% +/- 5% — Alternative Investments(such as Real Estate 5% +/- 5% Mutual Funds) - 42 - Village of Oak Brook, Illinois Notes to Financial Statements Note 2. Deposits and Investments(Continued) Investments(Continued) GASB 40—Firefighters' Pension Fund(Continued) The Firefighters' Pension Fund limits its exposure to custodial risk by utilizing the Trust Department of Oak Brook Bank to act as custodian for its fixed income securities. For an investment, custodial risk is the risk that, in the event of the failure of the counterparty, the Firefighters' Pension Board will not be able to recover the value of its investments that are in the possession of an outside party. Note 3. Property Taxes Property taxes for 2006 attach as an enforceable lien on January 1, 2006,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, 2007 and August 1, 2007 and are payable in two installments, on our about June 1, 2007 and September 1, 2007. 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. Note 4. Receivables The following receivables are included in Other Receivables on the Statement of Net Assets: Governmental activities IRMA excess surplus $ 116,355 State income tax 69,453 Hotel/motel tax 56,419 Grants 50,138 Other miscellaneous 92,021 Total governmental activities $ 384,386 Business-type activities IRMA excess surplus $ 36,260 Members charge 33,298 Special events 31,400 Other miscellaneous 15,838 Total business-type activities $ 116,796 - 43 - Village of Oak Brook, Illinois Notes to Financial Statements _ Note 5. Capital Assets Governmental Activities A summary of changes in capital assets for governmental activities of the Village is as follows: Balance Balance January 1 Additions Deletions December 31 Government activities: Capital assets not being depreciated: _ Land $ 616,829 $ $ - $ 616,829 Land right of way 31,687,305 - - 31,687,305 Total capital assets not being depreciated 32,304,134 - - 32,304,134 - Capital assets being depreciated: Buildings, building and land improvements 18,688,945 71,137 8,652 18,751,430 Computer equipment 858,103 39,556 - 897,659 Other equipment 1,460,759 277,796 28,427 1,710,128 _ Vehicles 75,416 - - 75,416 Infrastructure 32,774,601 11,172 30,371 32,755,402 Internal service fund vehicles 5,151,688 255,444 85,413 5,321,719 - 59,009,512 655,105 152,863 59,511,754 Less accumulated depreciation for: _ Buildings, building and land improvements 3,336,486 463,360 8,652 3,791,194 Computer equipment 719,630 47,354 - 766,984 Other equipment 896,257 164,171 12,826 1,047,602 - Vehicles 61,474 4,780 - 66,254 Infrastructure 16,326,364 920,747 - 17,247,111 - Internal service fund vehicles 2,910,726 357,452 68,674 3,199,504 24,250,937 1,957,864 90,152 26,118,649 Total capital assets being depreciated, net 34,758,575 (1,302,759) 62,711 33,393,105 Governmental activities capital assets, net $ 67,062,709 $ (1,302,759) $ 62,711 $ 65,697,239 - 44 - Village of Oak Brook, Illinois Notes to Financial Statements Note 5. Capital Assets(Continued) Business-Type Activities A summary of changes in capital assets for business-type activities of the Village is as follows: Balance Deletions Balance May 1 Additions and Transfers April 30 Business-type activities: Capital assets not being depreciated: Land $ 8,292,266 $ - $ - $ 8,292,266 Construction in progress 121,785 - 75,746 46,039 Total capital assets not being depreciated 8,414,051 - 75,746 8,338,305 Capital assets being depreciated: Land improvements 2,851,545 19,877 - 2,871,422 _ Building and building improvements 5,699,938 27,473 - 5,727,411 Infrastructure 15,495,762 365,070 25,013 15,835,819 Vehicles 14,337 - - 14,337 Machinery and equipment 4,645,171 51,340 - 4,696,511 28,706,753 463,760 25,013 29,145,500 Less accumulated depreciation for: Land improvements 1,909,346 62,361 - 1,971,707 Building and building improvements 1,875,807 113,918 - 1,989,725 Infrastructure 5,998,470 246,878 9,213 6,236,135 Vehicles 9,916 1,434 - 11,350 Machinery and equipment 2,699,796 275,598 - 2,975,394 12,493,335 700,189 9,213 13,184,311 Total capital assets being depreciated, net 16,213,418 (236,429) 15,800 15,961,189 Business-type activities capital assets, net $ 24,627,469 $ (236,429) $ 91,546 $ 24,299,494 - 45 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 5. Capital Assets (Continued) Depreciation Charged to Functions 1 Activities Depreciation was charged to functions/activities as follows: General government $ 345,441 Public safety 416,552 _ Public works 1,059,962 Culture and recreation 135,909 $ 1,957,864 Construction Contracts — The Village has entered into contracts for the construction or renovation of various facilities as follows: Project Expended Authorizations To Date Commitment Butterfield Widening IDOT $ 267,200 $ 240,488 $ 26,712 2007 Paving Project 34,829 29,826 5,003 Westdale Gardens Water Main 53,976 41,354 12,622 Totals $ 356,005 $ 311,668 $ 44,337 Note 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$2,500 of each occurrence, with IRMA having a mix of self-insurance and commercial — insurance at various amounts above that level. The Village appoints one delegate, along with an alternate delegate, to represent the Village on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. _ - 46 - — Village of Oak Brook, Illinois Notes to Financial Statements Note 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, retirees, and employees of the Oak Brook Park District through a limited self-insurance program. Through June 30, 2006, the Village was self-insured for the first$75,000 per individual for medical claims up to a maximum limit of$2,449,327 for all individuals. As of July 1, 2006, the Village was self-insured for the first$75,000 per individual for medical claims up to a maximum limit of$2,237,003 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, the Oak Brook Park District, and COBRA participants based upon equivalent premium estimates. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Reported liabilities are estimated based on historical cost information and include an amount for claims that have been incurred but not reported. The total claim liability at year-end was$147,000. A reconciliation of claims payable for the current year and that of the preceding year is as follows: 2006 2005 Claims payable, beginning of year $ 260,000 $ 427,000 Claims incurred and changes in estimates 2,349,204 2,097,923 Claims paid (2,462,204) (2,264,923) Claims payable,end of year $ 147,000 $ 260,000 - 47 - Village of Oak Brook, Illinois Notes to Financial Statements _ Note 7. Long-Term Obligations Installment Contract Payable The Village has issued three 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 Due Within Retired by January 1 Additions Retirements December 31 One Year 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, Sports secured by sales and use taxes Core $ 370,000 $ $ 85,000 $ 285,000 $ 90,000 General Fund Certificates, Series 2001 dated December 1,2000, interest at 4.625%to 4.70%,due in annual installments ranging from$190,000 to$370,000 through December 1,2010, interest payable June 1 and December 1 of each year,secured by sales and use taxes General 2,970,000 235,000 2,735,000 250,000 General Funding 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,interest payable June 1 and December 1 of each year,secured by sales Sports and use taxes Core 675,000 75,000 600,000 75,000 Total $ 4,015,000 $ $ 395,000 $ 3,620,000 $ 415 000 - 48 - Village of Oak Brook, Illinois Notes to Financial Statements Note 7. Long-Term Obligations(Continued) Capital Lease Payable The Village has entered into a capital lease payable during fiscal year 2005 for the acquisition of its golf cart fleet for the Sports Core Fund. The capital lease payable,therefore, is reported in the Sports Core Fund. The capital lease payable currently outstanding is as follows: Fund Debt Balance Balance Due Within Retired by January 1 Additions Retirements December 31 One Year _ Dated March 15, 2005,interest rate of 4.9%,due in monthly installments of$7,310 from May 15 through October 15 of each year through October 15, 2008,interest payable monthly from May 15 through October 15 of each year,secured by Sports equipment Core $ 120,643 $ - $ 38,265 $ 82,378 $ 40183 Debt Service Requirements to Maturity Annual debt service requirements to maturity are as follows: Installment Contracts Installment Contracts Capital Lease Payable Fiscal Year Payable from Payable from Enterprise from Enterprise Ending Governmental Activities Fund Fund December 31, Principal Interest Principal Interest Principal Interest 2007 $ 250,000 $ 128,162 $ 165,000 $ 30,751 $ 40,183 $ 3,678 2008 260,000 116,600 195,000 24,814 42,195 1,665 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 $ 2,735,000 $ 683,977 $ 885,000 $ 94,495 $ 82,378 $ 5,343 - 49 - Village of Oak Brook, Illinois Notes to Financial Statements Note 7. Long-Term Obligations(Continued) Changes in Long-Term Liabilities During the fiscal year,the following changes occurred in long-term liabilities reported in the governmental activities: Balance Balance Due Within January 1 Additions Retirements December 31 One Year Installment contracts payable $ 2,970,000 $ - $ 235,000 $ 2,735,000 $ 250,000 Compensated absences` 883,398 839,716 787,486 935,628 820,497 _ Compensated absences Internal Service Fund 10,974 8,081 12,960 6,095 6,095 Total govermental activities $ 3,864,372 $ 847,797 $ 1,035,446 $ 3,676,723 $ 1,076,592 *The compensated absences for governmental activities typically have been liquidated by the General Fund and Infrastructure Fund. During the fiscal year, the following changes occurred in long-term liabilities reported in the business-type activities: Balance Balance Due Within January 1 Additions Retirements December 31 One Year Installment contracts payable $ 1,045,000 $ - $ 160,000 $ 885,000 $ 165,000 Capital lease payable 120,643 38,265 82,378 40,183 Compensated absences 77,204 110,069 100,582 86,691 86,691 Total business-type activities $ 1,242,847 $ 110,069 $ 298,847 $ 1,054,069 $ 291,874 Legal Debt Margin 2005 assessed valuation(latest information available) $ 1,481,931,334 Legal debt limit-8.625%of assessed valuation $ 127,816,578 Amount of debt applicable to debt limit 3,620,000 Legal debt margin $ 124,196,578 - - 50 - Village of Oak Brook, Illinois Notes to Financial Statements Note 8. Interfund Accounts Transfers from/to other funds Receivable Fund Payable Fund Amount General SportsCore $ 1,290,000 The purpose of this amount advanced to the Sports Core Fund from the General Fund was to finance various capital projects and operating needs during 1996-2003. Note 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 2007 $ 842,000 2008 842,000 2009 842,000 2010 842,000 2011 842,000 Thereafter 10,946,000 Total $ 15,156,000 - 51 - Village of Oak Brook, Illinois Notes to Financial Statements _ Note 9. Commitments (Continued) DuPage Water Commission (Continued) 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. Note 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. Grants _ Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, 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. - - 52 - Village of Oak Brook, Illinois Notes to Financial Statements Note 10. Contingent Liabilities Redevelopment Agreement The Village entered into a redevelopment agreement with a developer dated June 6, 2005,whereby the Village has agreed to reimburse the developer for certain costs associated with the redevelopment project within the tax increment financing (TIF)#1 Butterfield-Meyers Road Redevelopment Project Area. The agreement requires the Village to reimburse the developer up to$4,250,000, if certain requirements of the redevelopment agreement are met.The$4,250,000, if incurred,would be in the form of a note payable issued to the developer that is payable from certain incremental revenues of the TIF with interest payable at 8.00%from the date of issuance through maturity. The note is a limited obligation of the TIF area only and will be secured by the pledge of 100%of the incremental real estate taxes from the Redevelopment Project Area and 20%of the incremental sales taxes within the Redevelopment Project Area. A liability has not been recorded for the developer reimbursements as of December 31, 2006 as the requirements of the redevelopment agreement have not been met and the note has not been issued. 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 paid$126,490 to the regional settlement agreement to date but the potential liability has not been adjudicated. The Village has not estimated any additional liability under potential IMF lawsuits as of December 31, 2006. Note 11. Defined Benefit Pension Plans The Village contributes to four defined benefit pension plans, the Illinois Municipal Retirement Fund(I MRF), an agent-multiple-employer public employee retirement system;the Sheriffs Law Enforcement Personnel(also administered by IMRF), an agent multiple-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 four plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. IMRF issues a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained from IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. - 53 - Village of Oak Brook, Illinois Notes to Financial Statements Note 11. Defined Benefit Pension Plans (Continued) 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 4.5%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, 2006 was 9.56%of covered payroll. — Sheriffs Law Enforcement Personnel Sheriffs Law Enforcement Personnel(SLEP) having accumulated at least 20 years of SLEP service and terminating IMRF participation on or after January 1, 1988, may elect to retire at or after age 50 with no early retirement discount penalty. SLEP members meeting these two qualifications are entitled to an annual retirement benefit payable — monthly for life, in an amount equal to 2 Yz%of their final rate of earnings for each year of credited service up to 20 years, 2%of their final earnings rate for the next 10 years of credited service and 1%for each year thereafter. For SLEP members retiring with less than 20 years of SLEP service,the regular IMRF pension formula applies. SLEP _ also provides death and disability benefits. These benefit provisions and all other requirements are established by Illinois compiled statute. Participating members are required to contribute 7.5%of their annual salary to SLEP. The Village is required to contribute the remaining amounts necessary to fund the SLEP as specified by statute. The _ employer contribution for the year ended December 31, 2006 was 13.47%of covered payroll. Police Pension Plan Police sworn personnel are covered by the Police Pension Plan. Although this is a single-employer pension pian, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes(40 ILCS 513-1)and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. At December 31, 2006,the Police Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 29 Terminated employees entitled to benefits but not yet receiving them Current employees — Vested 27 Nonvested 15 Total 71 - 54 - — Village of Oak Brook, Illinois Notes to Financial Statements Note 11. Defined Benefit Pension Plans(Continued) Plan Descriptions Police Pension Plan (Continued) 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 2.50%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 pension 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 upon reaching the age of 55, by _ 3%of the original pension and 3%annually thereafter. If the retiree is not yet 55, no increase is made until reaching age 55, at which time the increase is one twelfth(1/12)of 3%for each full month that the retiree has been receiving a pension. 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. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The costs of administering the Plan are financed through investment earnings. 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, 2006,the Village's contribution was 18.59%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 ILLS 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, 2006, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries currently receiving benefits 38 Terminated employees entitled to benefits but not yet receiving them 1 Current employees Vested 18 Nonvested 16 Total 73 - 55 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 11. Defined Benefit Pension Plans (Continued) Plan Descriptions Firefighters' Pension Plan(Continued) 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 receive — a reduced retirement benefit. The monthly pension of a firefighter 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 upon reaching at least the age of 55, by 3%of the original pension and 3%annually thereafter. If not 55, no increase is granted to the — retiree until reaching age 55, at which time the increase is one twelfth (1/12)of 3%for each full month that the pension was received prior to reaching age 55. Covered employees are required to contribute 9.455%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. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The costs of administering the Plan are financed through investment earnings. 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 service costs for the Firefighters' Pension Plan. For — the year ended December 31, 2006,the Village's contribution was 23.68%of covered payroll. 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 of the Firefighters' Pension Plans. Information for the IMRF and SLEP is not available. — Plan Organization Amount Police Pension Vanguard Institutional Index Fund $ 3,018,615 — Police Pension Dodge&Cox Stock Fund 1,945,647 Police Pension Enterprise Capital Fund 1,843,925 $ 6,808,187 Plan Organization Amount Firefighters' Pension American Growth Fund $ 1,265,922 Firefighters' Pension Davis NY Venture Fund 1,314,227 Firefighters'Pension Allianz Value Fund 1,223,567 Firefighters' Pension Dreman High Return Fund 1,378,439 $ 5,182,155 - - 56 - Village of Oak Brook, Illinois Notes to Financial Statements Note 11. Defined Benefit Pension Plans(Continued) Annual Pension Costs Employer contributions have been determined as follows: -- Illinois Municipal Retirement and Sheriff's Law Enforcement Police Firefighters' Personnel Pension Pension Actuarial Valuation Date December 31, January 1, January 1, 2004 2007 2007 Actuarial Cost Method Entry Age Entry Age Entry Age Normal Normal Normal Asset Valuation Method Five-Year Market Market Smoothed Market Amortization Method Level Percent- Level Percent- Level Percent- age of Payroll age of Payroll age of Payroll Amortization Period 26 Years, 27 Years, 27 Years, Closed Closed Closed Significant Actuarial Assumptions (a) Rate of Return on Investment of 7.50% 7.50% 7.50% Present and Future Assets Compounded Compounded Compounded Annually Annually Annually (b) Projected Salary Increases- 4.00% 5.25% 5.25% Attributable to Inflation Compounded Compounded Compounded Annually Annually Annually (c) Additional Projected Salary Increases-Attributable to 0.4%to 11.6% Not Available Not Available Seniority/Merit - 57 - Village of Oak Brook, Illinois Notes to Financial Statements _ Note 11. Defined Benefit Pension Plans (Continued) Annual Pension Costs Sheriff Illinois Law Fire- Calendar Municipal Enforcement Calendar Police fighters' Year Retirement Personnel Year Pension Pension Annual Pension Cost 2004 $ 500,558 $ 5,688 2004 $ 449,652 $ 490,612 (APC) 2005 557,323 8,958 2005 497,650 490,244 2006 577,112 15,562 2006 549,750 584,388 Actual contribution 2004 $ 500,558 $ 5,688 2004 $ 449,652 $ 490,612 2005 557,323 8,958 2005 497,650 490,244 2006 577,112 15,562 2006 549,750 584,388 Percent Contributed 2004 100.00% 100.00% 2004 100.00% 100.00% 2005 100.00% 100.00% 2005 100.00% 100.00% 2006 100.00% 100.00% 2006 100.00% 100.00% Net Pension Obligation 2004 $ - $ - 2004 $ - $ - 2005 2005 - 2006 2006 - - - 58 - Village of Oak Brook, Illinois Notes to Financial Statements Note 11. Defined Benefit Pension Plans (Continued) Summary Financial Information The following is a summary financial information for the Police and Fire Pension Plans. Pension Trust Police Firefighters' Pension Trust Pension Total Assets Cash $ 411,461 $ 704,627 $ 1,116,088 Investments Illinois Funds 26,033 130,254 156,287 _ Certificates of deposit 98,594 - 98,594 U.S.treasury securities 3,475,420 2,637,684 6,113,104 U.S. agency securities 9,646,056 7,301,391 16,947,447 State and local Obligations 949,012 895,023 1,844,035 Mutual funds 11,689,968 9,806,771 21,496,739 Accrued interest receivable 122,479 97,738 220,217 Prepaid items 125 - 125 Total assets 26,419,148 21,573,488 47,992,636 Liabilities Accounts payable 4,765 5,966 10,731 Net assets held in trust for pension plan benefits $ 26,414,383 $ 21,567,522 $ 47,981,905 - 59 - Village of Oak Brook, Illinois Notes to Financial Statements — Note 11. Defined Benefit Pension Plans(Continued) Summary Financial Information(Continued) Statement of Changes in Plan Net Assets Pension Trust Police Firefighters' _ Pension Pension Total Additions Contributions Employer $ 549,750 $ 584,388 $ 1,134,138 Employee 329,925 235,052 564,977 879,675 819,440 1,699,115 — Investment income Net appreciation in fair value _ of investments 1,318,832 1,433,858 2,752,690 Interest income 873,920 454,902 1,328,822 Less investment expenses (43,991) (26,916) (70,907) _ 2,148,761 1,861,844 4,010,605 Total additions 3,028,436 2,681,284 5,709,720 Deductions Administration 24,081 29,072 53,153 Pension benefits and refunds 1,305,742 1,137,884 2,443,626 — Transfers to other pension funds 36,791 - 36,791 Total deductions 1,366,614 1,166,956 2,533,570 Change in net assets 1,661,822 1,514,328 3,176,150 Net assets-beginning 24,752,561 20,053,194 44,805,755 Net assets-ending $ 26,414,383 $ 21,567,522 $ 47,981,905 _ - 60 - Village of Oak Brook, Illinois Notes to Financial Statements Note 12. Restatement Entity-Wide Statement of Net Assets—Governmental Activities The beginning capital assets have been restated to reflect construction in progress additions that were omitted as additions in 2005. As a result of a prior year omission,the Village increased beginning capital assets and increased -- beginning net assets invested in capital assets, net of related debt and increased total net assets. Management determined that a material amount of construction in progress was incorrectly omitted as additions in the prior year financial statements. The restatement is for Governmental Activities and its effect is as follows: Net assets invested in capital assets, net of related debt December 31, 2005, as previously reported $ 63,286,879 Plus: Prior period understatement of capital assets 586,357 Net assets invested in capital assets, net of related debt December 31, 2005 as restated $ 63,873,236 Total net assets, December 31, 2005, as previously reported $ 80,093,939 Plus: Prior period understatement of capital assets 586,357 Total net assets, December 31, 2005,as restated $ 80,680,296 Note 13. New Governmental Accounting Standards The Governmental Accounting Standards Board(GASB)has issued the following statements: Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, establishes uniform financial reporting standards for other postemployment benefit plans(OPEB plans)and supersedes existing guidance. This Statement will become effective for the year ending December 31, 2007. Statement No. 45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions,establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and related liabilities(assets), note disclosures, and if applicable, required supplementary information. This Statement will become effective for the year ending December 31, 2008. Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues, includes guidance to be used for recognizing other assets and liabilities arising from a sale of specific receivables or future revenues, including residual interests and resource provisions. The disclosures pertaining to future revenues that have been pledged or sold are intended to provide financial statement users with information about which revenues will be unavailable for other purposes and how long they will continue to be so. This Statement will become effective for the year ending December 31, 2007. 61 - Village of Oak Brook, Illinois Notes to Financial Statements Note 13. New Governmental Accounting Standards (Continued) Statement No. 49,Accounting and Financial Reporting for Pollution Remediation Obligations, addresses accounting and financial reporting standards for pollution(including contamination) remediation obligations, which are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution _ remediation activities such as site assessments and cleanups. This Statement will become effective for the year ending December 31, 2008. Management has not currently determined what impact, if any, these Statements may have on its financial statements. - 62 - REQUIRED SUPPLEMENTARY INFORMATION Village of Oak Brook, Illinois Required Supplementary Information Schedule of Revenues, Expenditures,and Changes in Fund Balance - Budget and Actual-General Fund Year Ended December 31, 2006 _ Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $ 11,978,000 $ 11,978,000 $ 12,669,874 $ 691,874 Utility taxes 4,560,000 4,560,000 3,822,020 (737,980) Licenses and permits 986,665 986,665 858,401 (128,264) Charges for services 776,500 776,500 835,390 58,890 Fines and penalties 320,000 320,000 292,331 (27,669) Investment income 450,000 450,000 468,441 18,441 Donations 28,250 28,250 25,311 (2,939) Miscellaneous 203,000 203,000 190,225 (12,775) Total revenues 19,302,415 19,302,415 19,161,993 (140,422) Expenditures Current General government 5,743,495 5,591,980 5,052,804 539,176 Public safety 11,877,450 12,023,825 11,990,727 33,098 Public works 743,015 743,015 654,226 88,789 Culture and recreation 1,390,385 1,395,525 1,383,352 12,173 Total expenditures 19,754,345 19,754,345 19,081,109 673,236 Net change in fund balance $ (451,930) $ (451,930) 80,884 $ 532,814 Fund balance-beginning 12,943,065 Fund balance-ending $ 13,023,949 See Note to Required Supplementary Information. -63- Village of Oak Brook,Illinois Required Supplementary Information Analysis of Funding Progress - December 31,2006 Illinois Municipal Retirement Fund UAAL as a (1) (2) (2)-(1) Percentage of _ Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2006 $ 12,350,563 $ 14,160,884 $ 1,810,321 87.22 % $ 6,036,741 29.99 % 2005 11,795,220 13,314,605 1,519,385 88.59 5,829,743 26.06 2004 10,795,206 12,381,519 1,586,313 87.19 5,707,616 27.79 2003 11,079,395 12,017,899 938,504 92.19 5,589,904 16.79 2002 11,189,319 11,194,278 4,959 99.96 5,228,707 0.09 2001 10,663,509 9,939,211 (724,298) 107.29 4,967,579 (14.58) Sheriff's Law Enforcement Personnel UAAL as a (1) (2) (2)-{1) Percentage of Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2006 $ 40,982 $ 4,052 $ (36,930) 1,011.40 % $ 115,531 (31.97) % 2005 17,968 (17,180) (35,148) (104.59) 66,502 (52.85) 2004 7,999 (4,983) (12,982) (160.53) 42,231 (30.74) Police Pension Fund _ UAAL as a (1) (2) (2)-(1) Percentage of Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered ._ Valuation Value of Liability(AAL) AAL Funded Covered Payroll Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2006 $ 26,414,388 $ 30,625,818 $ 4,211,430 86.25 % $ 3,162,857 133.15 % _ 2005 24,752,561 28,683,431 3,930,870 86.30 2,984,609 131.70 2004 24,157,442 27,106,938 2,949,496 89.12 2,808,631 105.02 2003 22,790,550 25,499,316 2,708,766 89.38 2,854,299 94.90 2002 20,521,085 23,581,098 3,060,013 87.02 2,736,034 111.84 2001 20,496,069 21,849,564 1,353,495 93.81 2,616,001 51.74 Firefighters'Pension Fund UAAL as a (1) (2) (2)-(1) Percentage of Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3) Covered Valuation Value of Liability(AAL) AAL Funded Covered Payroll - Date Assets Entry Age (UAAL) Ratio Payroll ((2-1)/3) 2006 $ 21,567,521 $ 27,373,120 $ 5,805,599 78.79 % $ 2,563,057 226.51 % 2005 20,053,194 26,016,602 5,963,408 77.08 2,439,899 244.41 �- 2004 19,395,277 24,131,120 4,735,843 80.37 2,298,601 206.03 2003 18,254,770 22,439.963 4,185,193 81.35 2,156,811 194.05 2002 16,240,617 20,878,039 4,637,422 77.79 2,222,646 208.64 _ 2001 17,487,246 19,819,493 2,332,247 88.23 2,144,046 108.78 -64- Village of Oak Brook,Illinois Required Supplementary Information Employer Contributions December 31, 2006 Illinois Municipal Retirement Fund Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed 2006 $ 577,112 $ 577,112 100 % _ 2005 557,323 557,323 100 2004 500,558 500,558 100 2003 395,206 395,206 100 _ 2002 346,663 346,663 100 2001 359,653 359,653 100 Sheriffs Law Enforcement Personnel Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed 2006 $ 15,562 $ 15,562 100 % 2005 8,958 8,958 100 2004 5,688 5,688 100 Police Pension Fund Actuarial Annual Valuation Employer Required Percentage _ Date Contributions Contribution Contributed 2006 $ 549,750 $ 549,750 100 % 2005 497,650 497,650 100 2004 449,652 449,652 100 2003 483,197 483,197 100 2002 338,565 338,565 100 2001 271,765 271,765 100 Firefighters'Pension Fund _ Actuarial Annual Valuation Employer Required Percentage Date Contributions Contribution Contributed 2006 $ 584,388 $ 584,388 100 % 2005 490,244 490,244 100 2004 490,612 490,612 100 2003 481,887 481,887 100 2002 417,022 417,022 100 2001 357,168 357,168 100 -65- Village of Oak Brook, Illinois Note to Required Supplementary Information Note 1. Budgetary Basis of Accounting — 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 exception 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. -66- MAJOR GOVERNMENTAL FUNDS MAJOR GOVERNMENTAL FUNDS General Fund—to account for resources traditionally associated with governments which are not required to be accounted for in another fund. _ Infrastructure Fund—to account for revenues and expenditures relative to the construction and maintenance of roadways,drainage and safety pathway systems. Village of Oak Brook,Illinois General Fund Schedule of Revenues-Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Intergovernmental Municipal sales tax $ 10,975,000 $ 10,975,000 $ 11,461,184 $ 486,184 $ 10,497,102 Illinois state income and use tax 705,000 705,000 823,336 118,336 750,002 Corporate personal property replacement taxes 260,000 260,000 275,162 15,162 258,242 York Township road and bridge tax 38,000 38,000 33,636 (4,364) 36,286 Grants - - 76,556 76,556 52,289 - Total intergovernmental 11,978,000 11,978,000 12,669,874 691,874 11,593,921 Utility taxes 4,560,000 4,560,000 3,822,020 (737,980) 4,268,283 Licenses and permits 986,665 986,665 858,401 (128,264) 669,726 Charges for services 776,500 776,500 835,390 58,890 791,638 Fines and penalties 320,000 320,000 292,331 (27,669) 334,869 Investment income 450,000 450,000 468,441 18,441 238,612 Donations 28,250 28,250 25,311 (2,939) 15,000 Miscellaneous Franchise fees 99,300 99,300 108,713 9,413 98,508 Other 103,700 103,700 81,512 (22,188) 67,832 Total miscellaneous 203,000 203,000 190,225 (12,775) 166,340 Total revenues $ 19,302,415 $ 19,302,415 $ 19,161,993 $ (140,422) $ 18,078,389 -67- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual Year Ended December 31,2006 2006 _ Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual General government Legislative and general management Board of trustees Personnel $ 100,210 $ 85,040 $ 59,705 $ 25,335 $ 74,338 Materials and supplies 12,365 12,365 1,750 10,615 6,626 Operation and contractual 186,270 86,270 61,113 25,157 52,361 Total board of trustees 298,845 183,675 122,568 61,107 133,325 Village clerk Personnel 189,215 189,215 185,509 3,706 158,767 Materials and supplies 2,080 2,080 1,205 875 1,423 Operation and contractual 25,835 24,635 18,326 6,309 17,195 Capital 15,000 15,000 - 15,000 - Total village clerk 232,130 230,930 205,040 25,890 177,385 w Legal Personnel 16,280 16,280 16,074 206 15,181 Materials and supplies 270 270 131 139 277 Operation and contractual 270,160 377,160 354,949 22,211 384,358 Total legal 286,710 393,710 371,154 22,556 399,816 General management Personnel 353,215 353,215 341,912 11,303 327,157 Materials and supplies 1,805 1,805 1,093 712 6,480 Operation and contractual 14,185 14,185 9,515 4,670 13,296 Total general management 369,205 369,205 352,520 16,685 346,933 Human resources Personnel 99,475 99,475 100,364 (889) 86,208 Materials and supplies 1,600 1,600 444 1,156 629 Operation and contractual 95,000 97,545 97,810 (265) 133,811 Total human resources 196,075 198,620 198,618 2 220,648 Risk management Materials and supplies 56,155 56,155 54,634 1,521 44,584 Operation and contractual 565,000 577,625 579,143 (1,518) 497,894 Total risk management 621,155 633,780 633,777 3 542,478 (Continued) -68- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 _ Budget Budget Actual (Negative) Actual General government(continued) Legislative and general management(continued) Emergency management Personnel $ 13,765 $ 13,765 $ 1,623 $ 12,142 $ 40 Materials and supplies 3,500 3,500 3,109 391 211 Operation and contractual 1,500 1,500 10,252 (8,752) - Capital 10,500 10,500 - 10,500 - Total emergency management 29,265 29,265 14,984 14,281 251 Business licenses 61,430 61,430 22,269 39,161 - Economic development 37,600 37,600 5,000 32,600 - General services Personnel 65,630 65,630 56,063 9,567 63,179 Materials and supplies 58,475 58,475 52,503 5,972 46,019 Operation and contractual 9,600 9,600 5,923 3,677 1,592 Capital 26,000 26,000 23,071 2,929 11,460 Total general services 159,705 159,705 137,560 22,145 122,250 Purchasing Personnel 145,525 144,325 142,893 1,432 136,069 Materials and supplies 825 825 617 208 885 Operation and contractual 1,200 3,700 1,848 1,852 113 Total purchasing 147,550 148,850 145,358 3,492 137,067 Information systems Personnel 394,470 394,220 399,666 (5,446) 366,777 Materials and supplies 14,000 17,600 20,941 (3,341) 17,608 Operation and contractual 323,525 318,875 338,088 (19,213) 284,723 Capital 409,785 409,785 368,364 41,421 146,869 Total information systems 1,141,780 1,140,480 1,127,059 13,421 815,977 Community events Operation and contractual 95,000 28,860 20,076 8,784 91,536 _ Total legislative and general management 3,676,450 3,616,110 3,355,983 260,127 2,987,666 (Continued) -69- Village of Oak Brook,Illinois General Fund Schedule of Expenditures•Budget and Actual(Continued) Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual General government(continued) Community development management Personnel $ 244,235 $ 244,235 $ 246,086 $ (1,851) $ 227,683 Materials and supplies 1,375 1,375 1,008 367 1,088 Operation and contractual 90,050 88,610 24,810 63,800 - Total community development management 335,660 334,220 271,904 62,316 228,771 Code enforcement Personnel 321,480 310,920 290,349 20,571 300,492 Materials and supplies 2,940 2,940 2,190 750 4,478 Operation and contractual 34,590 46,590 40,807 5,783 27,210 Total code enforcement 359,010 360,450 333,346 27,104 332,180 Total community development management 694,670 694,670 605,250 89,420 560,951 Financial services Financial services management Personnel 154,840 154,840 151,983 2,857 149,291 Materials and supplies 900 900 855 45 221 Operation and contractual 25,495 25,495 20,891 4,604 30,732 Total financial services 181,235 181,235 173,729 7,506 180,244 Accounting and reporting Personnel 357,030 357,030 347,787 9,243 311,309 Materials and supplies 7,605 7,605 5,197 2,408 7,269 Operation and contractual 29,320 29,320 22,793 6,527 31,662 Total accounting and reporting 393,955 393,955 375,777 18,178 350,240 Debt service Other 374,935 374,935 374,631 304 375,038 Total financial services 950,125 950,125 924,137 25,988 905,522 (Continued) -70- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual General government(continued) Engineering and capital projects Municipal building improvements Operation and contractual $ 10,250 $ 51,970 $ 28,614 $ 23,356 $ 28,225 Capital 336,000 203,105 62,820 140,285 85,509 Total engineering and capital projects 346,250 255,075 91,434 163,641 113,734 Reimbursement of Sports Core expenditures 314,200 314,200 314,200 - 104,500 Subtotal general government 5,981,695 5,830,180 5,291,004 539,176 4,672,373 Less reimbursements from other funds (238,200) (238,200) (238,200) - (226,900) Total general government 5,743,495 5,591,980 5,052,804 539,176 4,445,473 Public safety Police department Police services management Personnel 432,400 449,785 449,267 518 300,618 Materials and supplies 3,200 3,200 3,767 (567) 2,691 Operation and contractual 59,550 151,350 151,298 52 62,554 Total police services management 495,150 604,335 604,332 3 365,863 Police field services Personnel 3,418,540 3,586,005 3,602,365 (16,360) 3,557,252 Materials and supplies 73,750 73,750 75,479 (1,729) 62,953 Operation and contractual 369,690 369,690 385,435 (15,745) 273,559 Capital 37,500 37,500 31,556 5,944 27,057 Total police field services 3,899,480 4,066,945 4,094,835 (27,890) 3,920,821 Police general support _ Personnel 295,865 312,235 307,239 4,996 191,421 Materials and supplies 23,075 23,075 19,942 3,133 29,147 Operation and contractual 1,625 1,625 643 982 867 Capital 27,890 - 27,890 - - Total police general support 320,565 364,825 327,824 37,001 221,435 (Continued) -71- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Public safety(continued) Police department(continued) Police investigations Personnel $ 645,405 $ 540,755 $ 540,752 $ 3 $ 547,712 Materials and supplies 11,190 7,035 6,956 79 9,619 Operation and contractual 44,870 33,670 32,812 858 36,793 _ Capital 13,000 - - 17,348 Total police investigations 714,465 581,460 580,520 940 611,472 Police communications center Personnel 810,030 754,185 754,183 2 745,253 Materials and supplies 16,115 6,350 3,010 3,340 15,666 Operation and contractual 46,565 38,970 38,969 1 30,264 Capital 10,000 350 330 20 19,313 Total police communications center 882,710 799,855 796,492 3,363 810,496 Police records Personnel 169,860 169,860 166,813 3,047 154,720 Materials and supplies 12,350 9,220 7,751 1,469 6,120 Operation and contractual 7,920 7,920 8,239 (319) 5,989 Capital - - - - 13,954 Total police records 190,130 187,000 182,803 4,197 180,783 Public relations/crime prevention Personnel 197,465 197,210 195,564 1,646 96,172 Materials and supplies 5,450 4,450 3,659 791 5,903 Operation and contractual 3,725 3,725 3,376 349 3,776 Total public relations/crime prevention 206,640 205,385 202,599 2,786 105,851 Total police department 6,709,140 6,809,805 6,789,405 20,400 6,216,721 Fire Department Fire and EMS general salaries Personnel 3,545,705 3,628,015 3,628,014 1 3,464,925 (Continued) -72- Village of Oak Brook,Illinois General Fund Schedule of Expenditures•Budget and Actual(Continued) Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Public safety(continued) Fire department(continued) Fire services management Personnel $ 371,465 $ 376,445 $ 377,570 $ (1,125) $ 343,290 Materials and supplies 3,100 3,100 2,037 1,063 3,148 Operation and contractual 12,710 12,710 12,648 62 9,015 Total fire services management 387,275 392,255 392,255 - 355,453 Rescue and fire operation Personnel 9,430 9,925 8,162 1,763 6,609 Materials and supplies 65,150 65,150 61,820 3,330 54,305 Operation and contractual 336,665 311,170 310,780 390 248,492 Capital 10,000 10,000 9,991 9 14,347 ... Total rescue and fire operation 421,245 396,245 390,753 5,492 323,753 Special teams operations Personnel - - - - - Materials and supplies 10,000 10,135 10,728 (593) 8,236 Operation and contractual 8,940 8,940 8,347 593 6,323 Total special teams operations 18,940 19,075 19,075 - 14,559 Rescue and fire training Personnel 27,000 16,295 16,295 - 29,611 Materials and supplies - - - - 10 ... Total rescue and fire training 27,000 16,295 16,295 - 29,621 Emergency medical services Personnel 47,815 47,815 48,963 (1,148) 52,060 Materials and supplies 16,900 16,900 15,916 984 11,464 Operation and contractual 499,185 502,295 513,131 (10,836) 460,921 Capital 11,000 11,000 - 11,000 - _ Total emergency medical services 574,900 578,010 578,010 - 524,445 (Continued) -73- Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) " Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Public safety(continued) Fire department(continued) Prevention and public education Personnel $ 173,430 $ 165,205 $ 160,392 $ 4,813 $ 151,698 Materials and supplies 3,830 2,935 2,028 907 2,341 Operation and contractual 15,985 15,985 14,500 1,485 12,262 Total prevention and public education 193,245 184,125 176,920 7,205 166,301 Total fire department 5,168,310 5,214,020 5,201,322 12,698 4,879,057 Total public safety 11,877,450 12,023,825 11,990,727 33,098 11,095,778 Public works Mosquito control Operational and contractual 87,780 87,780 87,780 - 83,600 Buildings and grounds Personnel 72,890 72,210 74,472 (2,262) 68,735 Materials and supplies 38,940 37,450 31,813 5,637 35,656 Operation and contractual 200,115 202,285 179,537 22,748 158,641 Total buildings and grounds 311,945 311,945 285,822 26,123 263,032 Forestry Personnel 14,120 14,120 10,340 3,780 8,949 Materials and supplies 4,375 7,960 6,393 1,567 1,021 Operation and contractual 314,795 311,210 263,891 47,319 100,120 Capital 10,000 10,000 - 10,000 Total forestry 343,290 343,290 280,624 62,666 110,090 Total public works 743,015 743,015 654,226 88,789 456,722 (Continued) .e. -74- ..r Village of Oak Brook,Illinois General Fund Schedule of Expenditures-Budget and Actual(Continued) Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 _ Budget Budget Actual (Negative) Actual Culture and recreation Library general operations Personnel $ 416,545 $ 416,545 $ 412,302 $ 4,243 $ 384,382 Materials and supplies 22,775 22,775 92,991 (70,216) 20,185 Operation and contractual 128,640 126,415 117,244 9,171 107,007 Capital 63,250 62,655 - 62,655 - ... Total library general operations 631,210 628,390 622,537 5,853 511,574 Library technical services _ Personnel 173,925 173,925 171,778 2,147 162,316 Materials and supplies 6,860 6,860 6,754 106 6,638 Operation and contractual 8,445 8,445 8,401 44 7,722 Total library technical services 189,230 189,230 186,933 2,297 176,676 Library reference and adult services Personnel 181,540 183,765 183,719 46 163,871 Materials and supplies 137,815 137,815 137,876 (61) 133,770 Operation and contractual 7,500 7,500 7,481 19 8,011 Total library reference and adult services 326,855 329,080 329,076 4 305,652 Library youth services Personnel 186,955 192,690 188,762 3,928 176,042 Materials and supplies 50,210 50,210 50,119 91 48,661 Operation and contractual 5,925 5,925 5,925 - 6,726 Total library youth services 243,090 248,825 244,806 4,019 231,429 Total culture and recreation 1,390,385 1,395,525 1,383,352 12,173 1,225,331 Total expenditures $ 19 754,345 $ 19,754,345 $ 19,081,109 $ 673,236 $ 17,223,304 -75- Village of Oak Brook,Illinois Infrastructure Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended December 31,2006 _ 2006 Variance with Final Budget Original Final Positive 2005 Budget . Budget Actual (Negative) Actual Revenues Intergovernmental-grants $ 129,975 $ 129,975 $ 24,158 $ (105,817) $ 116,872 Non-home rule sales tax 2,493,000 2,493,000 2,641,030 148,030 2,422,549 Investment income 50,000 50,000 66,335 16,335 34,396 Total revenues 2,672,975 2,672,975 2,731,523 58,548 2,573,817 Expenditures Public works Management Personnel 340,395 340,395 338,749 1,646 330,270 Materials and supplies 5,180 5,180 1,373 3,807 1,957 Operation and contractual 90,460 90,460 81,258 9,202 73,582 Total management 436,035 436,035 421,380 14,655 405,809 Streets-general salaries Personnel 642,135 642,135 643,957 (1,822) 606,048 Materials and supplies 7,450 7,450 3,047 4,403 3,016 Operation and contractual 2,610 2,610 2,785 (175) 2,622 Total streets-general salaries 652,195 652,195 649,789 2,406 611,686 Streets and traffic maintenance Materials and supplies 32,735 32,735 21,705 11,030 23,196 Operation and contractual 275,305 275,305 234,118 41,187 212,458 Capital outlay 24,200 24,200 - 24,200 5,595 Total streets and traffic maintenance 332,240 332,240 255,823 76,417 241,249 Snow removal Personnel 54,820 54,820 15,815 39,005 43,254 Materials and supplies 56,925 56,925 15,702 41,223 51,316 Operation and contractual 59,450 59,450 54,661 4,789 55,544 Capital outlay 10,000 10,000 14,395 (4,395) 3,550 Total snow removal 181,195 181,195 100,573 80,622 153,664 Drainage maintenance Materials and supplies 4,025 4,025 1,698 2,327 2,580 Operation and contractual 55,125 55,125 50,423 4,702 48,723 Total drainage maintenance 59,150 59,150 52,121 7,029 51,303 (Continued) -76- Village of Oak Brook,Illinois Infrastructure Fund Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Expenditures(continued) Public works(continued) Safety pathway maintenance Materials and supplies $ 18,195 $ 18,195 $ 1,185 $ 17,010 $ 12,313 Operation and contractual 52,065 52,065 20,340 31,725 18,950 Total safety pathway maintenance 70,260 70,260 21,525 48,735 31,263 Engineering and capital projects _ Engineering Personnel 428,405 428,405 421,796 6,609 399,290 Materials and supplies 3,200 3,200 1,715 1,485 1,234 Operation and contractual 29,625 29,625 23,849 5,776 16,073 .., Capital outlay 42,100 42,100 - 42,100 - Total engineering 503,330 503,330 447,360 55,970 416,597 Roadway improvements Operation and contractual 127,800 127,800 103,965 23,835 93,509 Capital outlay 1,144,000 1,144,000 838,652 305,348 404,785 Total roadway improvements 1,271,800 1,271,800 942,617 329,183 498,294 Stormwater management improvements Operation and contractual 8,000 8,000 3,580 4,420 4,558 Capital outlay 46,930 46,930 2,535 44,395 11,254 ,. Total stormwater management improvements 54,930 54,930 6,115 48,815 15,812 Safety pathway improvements Operation and contractual 10,000 10,000 11,172 (1,172) 203,999 Capital outlay 303,000 303,000 - 303,000 576,348 Total safety pathway improvements 313,000 313,000 11,172 301,828 780,347 Subtotal expenditures 3,874,135 3,874,135 2,908,475 965,660 3,206,024 Less reimbursements from other funds (436,500) (436,500) (399,414) (37,086) (332,900) _ Total expenditures 3,437,635 3,437,635 2,509,061 928,574 2,873,124 Excess(deficiency)of revenues over '- expenditures (764,660) (764,660) 222,462 987,122 (299,307) Other financing sources(uses) 1000,000) Transfers(out) - - Net change in fund balance $ (764,660) $ (764,660L 222,462 $ 987,122 (1,299,307) Fund balance-beginning 1,696,960 2,996,267 Fundbalance-ending $ 1,919,422 $ 1,696,960 -77- _ NONMAJOR GOVERNMENTAL FUNDS Village of Oak Brook,Illinois Nonmajor Governmental Funds Combining Balance Sheet December 31,2006 — Nonmajor Funds Special Revenue Funds Capital Total Foreign Fire Projects Fund Nonmajor Hotel/Motel Motor Fuel Insurance Promenade Governmental Tax Tax Tax T.I.F. Funds Assets Cash and equivalents $ 205,241 $ 463,875 $ 102,768 $ 15,156 $ 787,040 _ Receivables Allotments - 21,164 - - 21,164 Accrued Interest 297 92 - 389 _ Other,hotel/motel tax 56,419 - - - 56,419 Total assets $ 261,957 $ 485,131 $ 102,768 $ 15,156 $ 865,012 Liabilities Accounts payable $ 68,954 $ - $ - $ - $ 68,954 — Fund Balances Unreserved 193,003 485,131 102,768 15,156 796,058 Total liabilities and fund balances $ 261,957 $ 485,131 $ 102,768 $ 15,156 $ 865,012 -78- Village of Oak Brook,Illinois Nonmajor Governmental Funds Combining Statement of Revenues,Expenditures and Changes in Fund Balances Year Ended December 31,2006 Nonmajor Funds Special Revenue Funds Capital Total Foreign Fire Projects Fund Nonmajor Hotel/Motel Motor Fuel Insurance Promenade Governmental _ Tax Tax Tax T.I.F. Funds Revenues Intergovernmental $ - $ 250,481 $ 37,357 $ 14,821 $ 302,659 Hotellmotel taxes 416,507 - - - 416,507 Investment income 9,568 17,131 780 335 27,814 Total revenues 426,075 267,612 38,137 15,156 746,980 Expenditures Public safety - - 57,094 - 57,094 Public works - 30,914 - - 30,914 Culture and recreation 472,162 - - - 472,162 - Total expenditures 472,162 30,914 57,094 - 560,170 Net change in fund balances (46,087) 236,698 (18,957) 15,156 186,810 Fund balances-beginning 239,090 248,433 121,725 - 609,248 Fund balances-ending $ 193,003 $ 485,131 $ 102,768 $ 15,156 $ 796,058 -79- Village of Oak Brook,Illinois Hotel/Motel Tax Fund — Schedule of Revenues,Expenditures,and Changes in Fund Balance –Budget and Actual Year Ended December 31,2006 — 2006 Variance with — Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual — Revenues Hotel/motel taxes $ 340,000 $ 340,000 $ 416,507 $ 76,507 $ 349,615 Investment income 5,000 5,000 9,568 4,568 5,450 Total revenues 345,000 345,000 426,075 81,075 355,065 Expenditures Current Culture and recreation 464,200 539,200 472,162 67,038 369,330 — Total expenditures 464,200 539,200 472,162 67,038 369,330 Net change in fund balance $ (119,200) $ (194,200) (46,087) $ 148,113 (14,265) — Fund balance-beginning 239,090 253,355 Fund balance-ending $ 193,003 $ 239,090 -80- Village of Oak Brook,Illinois Motor Fuel Tax Fund Schedule of Revenues, Expenditures,and Changes in Fund Balance —Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Revenues Intergovernmental $ 254,000 $ 254,000 $ 250,481 $ (3,519) $ 253,480 _ Investment income 8,000 8,000 17,131 9,131 8,023 Total revenues 262,000 262,000 267,612 5,612 261,503 Expenditures Current Public works 68,000 68,000 30,914 37,086 472,501 Net change in fund balance $ 194,000 $ 194,000 236,698 $ 42,698 (210,998) Fund balance-beginning 248,433 459,431 Fund balance-ending $ 485,131 $ 248,433 -81 - Village of Oak Brook,Illinois Foreign Fire Insurance Fund — Schedule of Revenues,Expenditures,and Changes in Fund Balance –Budget and Actual Year Ended December 31,2006 — 2006 Variance with — Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual — Revenues Intergovernmental $ 46,230 $ 46,320 $ 37,357 $ (8,963) $ 46,321 — Investment income 500 500 780 280 378 Total revenues 46,730 46,820 38,137 (8,683) 46,699 Expenditures Current Public safety 97,150 97,150 57,094 40,056 63,059 — Net change in fund balance $ (50,420) $ (50,330) (18,957) $ 31,373 (16,360) Fund balance-beginning 121,725 138,085 Fund balance-ending $ 102,768 $ 121,725 -82- Village of Oak Brook,Illinois Promenade T.I.F.Fund Schedule of Revenues,Expenditures,and Changes in Fund Balance —Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Intergovernmental $ $ - $ 14,821 $ 14,821 Investment income - 335 335 Total revenues - - 15,156 15,156 Expenditures Other - - - - Net change in fund balance $ - $ 15,156 $ 15,156 Fund balance-beginning - Fund balance-ending $ 15,156 -83- _ PROPRIETARY FUNDS MAJOR ENTERPRISE FUNDS Waterworks System Fund—to account for revenues and expenses relative to the operation of the water utility. Sports Core Fund—to account for revenues and expenses relative to the operation of the Oak Brook Sports Core. Village of Oak Brook,Illinois Waterworks System Fund Schedule of Revenues,Expenses and Changes in Net Assets Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Operating revenues Charges for services Water sales $ 4,767,000 $ 4,767,000 $ 4,236,693 $ (530,307) $ 4,292,127 Unmetered sales 25,000 25,000 28,413 3,413 28,980 _ Water tap on charges 50,000 50,000 76,584 26,584 57,960 Meter fees and special services 31,000 31,000 43,792 12,792 42,106 Miscellaneous 49,000 49,000 42,487 (6,513) 48,014 Total operating revenues 4,922,000 4,922,000 4,427,969 (494,031) 4,469,187 - Operating expenses Operation of facilities 4,048,955 4,048,955 3,501,887 547,068 3,880,959 - Depreciation and amortization 899,550 899,550 455,188 444,362 454,887 Total operating expenses 4,948,505 4,948,505 3,957,075 991,430 4,335,846 Operating income(loss) (26,505) (26,505) 470,894 497,399 133,341 Nonoperating revenues(expenses) Investment income 110,000 110,000 176,624 66,624 76,387 - Changes in net assets $ 83,495 $ 83,495 647,518 $ 564,023 209,728 Net assets-beginning 16,031,759 15,822,031 Net assets-ending $ 16,679,277 $ 16,031,759 -84- Village of Oak Brook,Illinois Waterworks System Fund Schedule of Operating Expenses•Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Operating expenses excluding depreciation Operating of facilities Public works-water operations Personnel $ 643,375 $ 643,375 $ 635,522 $ 7,853 $ 640,988 Materials and supplies 111,905 111,905 111,819 86 110,973 Operation and contractual 2,929,875 2,929,875 2,360,546 569,329 2,757,998 Reimbursements for governmental services 394,000 394,000 394,000 - 371,000 Total public works-water operations 4,079,155 4,079,155 3,501,887 577,268 3,880,959 Capital improvements Capital outlay 869,350 869,350 425,467 443,883 136,699 Total operating expenses(excluding depreciation)- budgetary basis $ 4,948,505 $ 4,948,505 3,927,354 $ 1,021,151 4,017,658 Adjustments to GAAP basis Capital expenditures (425,467) (136,699) Depreciation and Amortization expense 455,188 454,887 Total adjustments to GAAP basis 29,721 318,188 Total operating expenses $ 3,957,075 $ 4,335,846 -85- Village of Oak Brook,Illinois Sports Core Fund Schedule of Revenues,Expenses and Changes in Net Assets- Budget and Actual Year Ended December 31,2006 — 2006 Variance with _ Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Operating revenues Charges for services Golf $ 2,315,700 $ 2,315,700 $ 2,147,542 $ (168,158) $ 2,187,734 — Bath and tennis 298,975 298,975 319,242 20,267 298,483 Food and beverage 1,092,900 1,092,900 1,096,637 3,737 944,378 Total operating revenues 3,707,575 3,707,575 3,563,421 (144,154) 3,430,595 Operating expenses Golf club 1,820,205 1,856,465 1,677,247 179,218 1,552,356 Bath and tennis 758,420 771,890 566,004 205,886 590,519 Food and beverage 1,144,395 1,239,140 1,098,949 140,191 977,960 Depreciation - - 313,860 (313,860) 301,170 Total operating expenses 3,723,020 3,867,495 3,656,060 211,435 3,422,005 Operating income(loss) (15,445) (159,920) (92,639) 67,281 8,590 Nonoperating revenues(expenses) -- Investment income 22,313 22,313 6,431 Interest expense (34,811) 34,811 (40,201) Gain on sale of capital assets - 1,061,472 — Total nonoperating revenues(expenses) (12,498) 57,124 1,027,702 Changes in net assets $ (15,445) $ (159,920) (105,137) $ 124,405 1,036,292 Net assets-beginning 11,295,058 10,258,766 Net assets-ending $ 11,189,921 $ 11,295,058 _ -86- Village of Oak Brook,Illinois Sports Core Fund Schedule of Operating Revenues-Budget and Actual Year Ended December 31,2006 _ 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Charges for services _ Golf Fees $ 1,684,925 $ 1,684,925 $ 1,524,128 $ (160,797) $ 1,590,058 Golf surcharge 72,750 72,750 63,822 (8,928) 65,993 Memberships 333,025 333,025 314,725 (18,300) 312,825 Merchandise sales 225,000 225,000 244,867 19,867 218,858 Total golf 2,315,700 2,315,700 2,147,542 (168,158) 2,187,734 Bath and tennis Fees 114,100 114,100 123,275 9,175 113,552 Memberships 180,575 180,575 191,054 10,479 180,247 _ Merchandise Sales 1,800 1,800 896 (904) 2,219 Miscellaneous 2,500 2,500 4,017 1,517 2,465 Total bath and tennis 298,975 298,975 319,242 20,267 298,483 Food and beverage Food sales 634,075 634,075 637,432 3,357 548,846 Beverage sales 340,675 340,675 342,122 1,447 317,434 _ Miscellaneous 118,150 118,150 117,083 (1,067) 78,098 Total food and beverage 1,092,900 1,092,900 1,096,637 3,737 944,378 Total operating revenues $ 3,707,575 $ 3,707,575 $ 3,563,421 $ (144,154) $ 3,430,595 -87- Village of Oak Brook,Illinois Sports Core Fund Schedule of Operating Expenses-Budget and Actual Year Ended December 31,2006 2006 - Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Operating expenses excluding depreciation Operations-golf club - Golf club general operations Personnel $ 442,925 $ 468,285 $ 466,739 $ 1,546 $ 430,397 Materials and supplies 215,400 218,400 219,137 (737) 214,283 _ Operation and contractual 184,210 189,710 182,742 6,968 189,332 Capital 35,000 29,500 - 29,500 - Total golf club general operations 877,535 905,895 868,618 37,277 834,012 Golf club range operations Personnel 53,070 53,070 51,782 1,288 47,948 Materials and supplies 14,500 14,500 8,384 6,116 12,514 _ Operation and contractual 12,700 12,700 10,479 2,221 9,271 Total golf club range operations 80,270 80,270 70,645 9,625 69,733 Golf cart operations Personnel 29,505 29,505 22,677 6,828 30,529 Materials and supplies 3,400 3,400 2,307 1,093 211 Operation and contractual 51,130 51,130 11,316 39,814 2,697 Total golf cart operations 84,035 84,035 36,300 47,735 33,437 Golf course maintenance _ Personnel 473,440 473,440 475,400 (1,960) 447,414 Materials and supplies 194,900 194,900 194,489 411 157,769 Operation and contractual 31,400 34,300 31,795 2,505 9,991 Other 51,625 51,625 - 51,625 - Capital 27,000 32,000 - 32,000 - Total golf course maintenance 778,365 786,265 701,684 84,581 615,174 Total operations-golf club 1,820,205 1,856,465 1,677,247 179,218 1,552,356 Operations-bath and tennis _ General operations-Sports Core,Polo and Open Fields Personnel 242,900 286,430 235,452 50,978 211,135 Materials and supplies 53,650 49,795 4,877 44,918 13,068 - Operation and contractual 179,450 153,245 138,400 14,845 128,800 Total general operations 476,000 489,470 378,729 110,741 353,003 (Continued) -88- Village of Oak Brook,Illinois Sports Core Fund Schedule of Operating Expenses-Budget and Actual(Continued) Year Ended December 31,2006 Original Final 2005 Budget Budget Actual Variance Actual Operating expenses excluding depreciation (continued) Operations -bath and tennis(continued) Swimming operations _ Personnel $ 109,320 $ 19,320 $ 6,037 $ 13,283 $ 106,969 Materials and supplies 19,350 21,870 13,105 8,765 36,758 Operation and contractual 33,650 121,130 89,916 31,214 16,971 Capital 35,000 35,000 - 35,000 - Total swimming operations 197,320 197,320 109,058 88,262 160,698 Tennis operations-outdoor Personnel 69,450 69,450 66,799 2,651 66,825 Materials and supplies 2,650 2,650 4,221 (1,571) 1,299 Operation and contractual 13,000 13,000 7,197 5,803 8,694 Total tennis operations-bath and tennis 85,100 85,100 78,217 6,883 76,818 Total operations-bath and tennis 758,420 771,890 566,004 205,886 590,519 Food and beverage Personnel 504,655 532,610 514,783 17,827 452,263 Materials and supplies 366,400 418,010 392,683 25,327 363,108 Operation and contractual 180,440 195,620 191,483 4,137 162,589 Other 92,900 92,900 - 92,900 - Total food and beverage 1,144,395 1,239,140 1,098,949 140,191 977,960 Capital outlay 281,625 137,150 38,293 98,857 86,625 Total operating expenses-budgetary basis $ 4,004,645 $ 4,004,645 3,380,493 $ 624,152 3,207,460 Adjustments to GAAP basis Capital expenditures (38,293) (86,625) Depreciation expense 313,860 301,170 Total adjustment to GAAP basis 275,567 214,545 Total operating expenses $ 3,656,060 $ 3,422,005 -89- —" 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 31,2006 Self- Capital Insurance Garage Replacement Total - Assets Current - Cash and investments $ 476,849 $ 63,496 $ 3,184,795 $ 3,725,140 Receivables Accrued interest - - 2,584 2,584 Other 46,460 1,265 - 47,725 Inventories - 50,971 - 50,971 Prepaid Expense 13,855 - - 13,855 - Total current assets 537,164 115,732 3,187,379 3,840,275 Capital assets Depreciable, net of accumulated _ depreciation - 23,601 2,098,614 2,122,215 Total assets $ 537,164 $ 139,333 $ 5,285,993 $ 5,962,490 _ Liabilities Accounts payable $ 167,619 $ 38,411 $ 86,029 $ 292,059 Accrued payroll - 6,472 - 6,472 Compensated absences payable - 6,095 - 6,095 - Deferred revenue 65,030 - - 65,030 Claims payable 147,000 - - 147,000 Total liabilities 379,649 50,978 86,029 516,656 Net Assets Invested in capital assets, net of related debt - 23,601 2,098,614 2,122,215 Unrestricted 157,515 64,754 3,101,350 3,323,619 Total net assets $ 157,515 $ 88,355 $ 5,199,964 $ 5,445,834 -90- Village of Oak Brook,Illinois Internal Service Funds Combining Statement of Revenues,Expenses and Changes in Net Assets Year Ended December 31,2006 _ Self- Capital Insurance Garage Replacement Total Revenues Charges for services $ 2,823,411 $ 527,600 $ 647,650 $ 3,998,661 Operating expenses Claims and insurance 2,738,372 - - 2,738,372 Garage operations - 524,433 - 524,433 Miscellaneous - - 15,952 15,952 Depreciation - 3,384 354,068 357,452 Total operating expenses 2,738,372 527,817 370,020 3,636,209 Operating income(loss) 85,039 (217) 277,630 362,452 Nonoperating revenues(expenses) Investment income 18,648 2,541 137,249 158,438 Gain on sale of capital assets - - 3,376 3,376 Total nonoperating revenues(expenses) 18,648 2,541 140,625 161,814 Change in net assets 103,687 2,324 418,255 524,266 Net assets-beginning 53,828 86,031 4,781,709 4,921,568 Net assets-ending $ 157,515 $ 88,355 $ 5,199,964 $ 5,445,834 -91 - Village of Oak Brook,Illinois Internal Service Funds _ Combining Statement of Cash Flows Year Ended December 31,2006 Self- Capital Insurance Garage Replacement Total Cash flows from operating activities Receipts from internal services transactions $ 1,967,197 $ 527,177 $ 647,650 $ 3,142,024 _ Receipts from miscellaneous revenue 886,316 - - 886,316 Payments to suppliers (2,683,753) (357,354) (15,952) (3,057,059) Payments to employees - (161,420) - (161,420) Net cash from operating actiivities 169,760 8,403 631,698 809,861 _ Cash flows from capital and related financing activities Purchase of capital assets - (9,158) (147,836) (156,994) Proceeds from sale of capital assets - 3,376 3,376 Net cash from capital and related financing activities - (9,158) (144,460) (153,618) Cash flows from investing activities Purchase of investments - - (45,523) (45,523) Interest received 18,648 2,541 137,196 158,385 Net cash from investing activities 18,648 2,541 91,673 112,862 Net increase in cash and equivalents 188,408 1,786 578,911 769,105 Cash and equivalents-beginning 288,441 61,710 1,500,171 1,850,322 Cash and equivalents-ending $ 476,849 $ 63,496 $ 2,079,082 $ 2,619,427 _ Cash and investments _ Cash and cash equivalents $ 476,849 $ 63,496 $ 2,079,082 $ 2,619,427 Investments - - 1,105,713 1,105,713 Total cash and investments $ 476,849 $ 63,496 $ 3,184,795 $ 3,725,140 Noncash transactions _ Unrealized gain on investments $ - $ - $ 336 $ 336 (Continued) -92- Village of Oak Brook,Illinois Internal Service Funds Combining Statement of Cash Flows(Continued) Year Ended December 31,2006 Self- Capital Insurance Garage Replacement Total -- Reconciliation of operating income(loss)to net cash provided by operating activities Operating income(loss) $ 85,039 $ (217) $ 277,630 $ 362,452 Depreciation - 3,384 354,068 357,452 Adjustments to reconcile operating income(loss)to net cash provided by operating activities: Changes in assets and liabilities: Accounts receivable 41,157 (423) - 40,734 _ Inventories - (5,492) - (5,492) Prepaid expenses (13,855) - - (13,855) Accounts payable and accrued liabilities 167,619 17,438 - 185,057 Accrued payroll and compensated absences - (6,287) - (6,287) Deferred revenue 2,800 - - 2,800 Claims payable (113,000) - - (113,000) Total adjustments 84,721 5,236 - 89,957 Net cash provided by operating actiivities $ 169,760 $ 8,403 $ 631,698 $ 809,861 -93- Village of Oak Brook,Illinois Self-Insurance Fund Schedule of Revenues,Expenses and Changes in Net Assets-Budget and Actual Year Ended December 31,2006 2006 y Variance with Final Budget Original Final Positive 2005 '- Budget Budget Actual (Negative) Actual Operating Revenues Charges for services $ 2,841,400 $ 2,841,400 $ 2,823,411 $ (17,989) $ 2,479,734 Total operating revenues 2,841,400 2,841,400 2,823,411 (17,989) 2,479,734 Operating expenses Claims and insurance Insurance and administration 444,345 444,345 389,167 55,178 342,460 Health Claims 2,148,155 2,148,155 2,213,292 (65,137) 1,960,068 Dental claims 161,000 161,000 135,913 25,087 137,856 Total operating expenses 2,753,500 2,753,500 2,738,372 15,128 2,440,384 Operating income(loss) 87,900 87,900 85,039 (2,861) 39,350 Nonoperating revenues Investment income 4,000 4,000 18,648 14,648 3,730 Total nonoperating revenues _ (expenses) 4,000 4,000 18,648 14,648 3,730 Change in net assets $ 91,900 $ 91,900 103,687 $ 11,787 43,080 Net assets,January 1 53,828 10,748 Net assets,December 31 $ 157,515 $ 53,828 -94- "" Village of Oak Brook,Illinois Garage Fund Schedule of Revenues,Expenses and Changes in Net Assets-Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Operating revenues Charges for services $ 527,600 $ 527,600 $ 527,600 $ $ 481,295 Total operating revenues 527,600 527,600 527,600 481,295 _ Operating expenses Garage operations Personnel 182,485 182,485 155,132 27,353 165,285 _ Materials and supplies 179,540 167,325 188,468 (21,143) 175,071 Operations and contractual 133,490 145,705 180,833 (35,128) 147,204 Capital outlay 53,600 53,600 9,158 44,442 14,985 Total operating expenses excluding depreciation 549,115 549,115 533,591 15,524 502,545 Operating income(loss) (21,515) (21,515) (5,991) 15,524 (21,250) Nonoperating revenues(expenses) Investment income 3,000 3,000 2,541 (459) 2,522 Total nonoperating revenues (expenses) 3,000 3,000 2,541 (459) 2,522 Change in net assets-budgetary basis $ (18,515) $ (18,515) (3,450) $ 15,065 (18,728) Adjustments to GAAP basis Capital expenditures 9,158 14,985 Depreciation expense (3,384) (2,457) Total adjustments to GAAP basis 5,774 12,528 Change in net assets-GAAP basis 2,324 (6,200) Net assets,January 1 86,031 92,231 Net assets, December 31 $ 88,355 $ 86,031 -95- Village of Oak Brook,Illinois Capital Replacement Fund _ Schedule of Revenues,Expenses and Changes in Net Assets-Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Operating revenues Charges for services $ 647,650 $ 647,650 $ 647,650 $ $ 448,565 Total operating revenues 647,650 647,650 647,650 448,565 Operating expenses excluding depreciation Capital outlay 568,505 568,505 246,286 322,219 469,880 Total operating expenses 568,505 568,505 246,286 322,219 469,880 Operating income(loss) 79,145 79,145 401,364 322,219 (21,315) Nonoperating revenues Investment income 100,000 100,000 137,249 37,249 65,693 Gain on sale of capital assets 10,000 10,000 3,376 (6,624) 38,139 _ Other expense - - (15,952) (15,952) - Total nonoperating revenues (expenses) 110,000 110,000 124,673 14,673 103,832 Change in net assets-budgetary basis $ 189,145 $ 189,145 526,037 $ 336,892 82,517 Adjustments to GAAP basis Capital expenditures 246,286 466,998 Depreciation Expense (354,068) (345,139) _ Total adjustments to GAAP basis (107,782) 121,859 Change in net assets-GAAP basis 418,255 204,376 _ Net assets,January 1 4,781,709 4,577,333 Net assets, December 31 $ 5,199,964 $ 4,781,709 -96- FIDUCIARY FUNDS 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 Combining Statement of Fiduciary Net Assets December 31, 2006 Pension Trust Police Firefighters' Pension Pension Totals Assets Cash $ 411,461 $ 704,627 $ 1,116,088 Investments Illinois Funds 26,033 130,254 156,287 Certificates of deposit 98,594 - 98,594 U.S. treasury securities 3,475,420 2,637,684 6,113,104 U.S. agency securities 9,646,056 7,301,391 16,947,447 State and local obligations 949,012 895,023 1,844,035 _ Mutual funds 11,689,968 9,806,771 21,496,739 Accrued interest receivable 122,479 97,738 220,217 Prepaid items 125 - 125 Total assets 26,419,148 21,573,488 47,992,636 Liabilities Accounts payable 4,765 5,966 10,731 Net Assets Held in Trust for Pension Benefits $ 26,414,383 $ 21,567,522 $ 47,981,905 See Notes to Financial Statements. -97- — Village of Oak Brook,Illinois Fiduciary Funds _ Combining Statement of Changes in Pian Net Assets Year Ended December 31,2006 Pension Trust Police Firefighters' — Pension Pension Totals Additions Contributions Employer $ 549,750 $ 584,388 $ 1,134,138 Participants 329,925 235,052 564,977 879,675 819,440 1,699,115 _ Investment income Net appreciation in fair value of investments 1,318,832 1,433,858 2,752,690 Interest income 873,920 454,902 1,328,822 Less investment expense (43,991) (26,916) (70,907) 2,148,761 1,861,844 4,010,605 Total additions 3,028,436 2,681,284 5,709,720 — Deductions Administration 24,081 29,072 53,153 _ Pension benefits and refunds 1,305,742 1,137,884 2,443,626 Transfers to other pension funds 36,791 - 36,791 Total deductions 1,366,614 1,166,956 2,533,570 Change in net assets 1,661,822 1,514,328 3,176,150 Net assets-beginning 24,752,561 20,053,194 44,805,755 Net assets-ending $ 26,414,383 $ 21,567,522 $ 47,981,905 -98- Village of Oak Brook,Illinois Police Pension Fund Schedule of Changes in Plan Net Assets-Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 _ Budget Budget Actual (Negative) Actual Additions _ Contributions Employer $ 521,535 $ 521,535 $ 549,750 $ 28,215 $ 497,650 Participants 291,000 291,000 329,925 38,925 279,258 812,535 812,535 879,675 67,140 776,908 Investment income Net appreciation in fair value of investments - - 1,318,832 1,318,832 425,980 Interest income 1,700,000 1,700,000 873,920 (826,080) 704,887 Less investment expense (62,200) (62,200) (43,991) 18,209 (41,817) _ 1,637,800 1,637,800 2,148,761 510,961 1,089,050 Total additions 2,450,335 2,450,335 3,028,436 578,101 1,865,958 Deductions Administration 12,785 12,785 24,081 (11,296) 22,145 Pension benefits and refunds 1,385,000 1,385,000 1,305,742 79,258 1,248,694 '— Transfers to other pension funds - - 36,791 (36,791) - Total deductions 1,397,785 1,397,785 1,366,614 31,171 1,270,839 Change in net assets $ 1,052,550 $ 1,052,550 1,661,822 $ 609,272 595,119 Net assets-beginning 24,752,561 24,157,442 Net assets-ending $ 26,414,383 $24,752,561 -99- Village of Oak Brook,Illinois Firefighters'Pension Fund Schedule of Changes in Plan Net Assets-Budget and Actual Year Ended December 31,2006 2006 Variance with Final Budget Original Final Positive 2005 Budget Budget Actual (Negative) Actual Additions Contributions Employer $ 515,865 $ 515,865 $ 584,388 $ 68,523 $ 490,244 Participants 230,000 230,000 235,052 5,052 231,399 745,865 745,865 819,440 73,575 721,643 Investment income Net appreciation in fair value of investments - - 1,433,858 1,433,858 719,388 Interest income 1,500,000 1,500,000 454,902 (1,045,098) 346,670 Less investment expense (45,700) (45,700) (26,916) 18,784 (25,551) 1,454,300 1,454,300 1,861,844 407,544 1,040,507 Total additions 2,200,165 2,200,165 2,681,284 481,119 1,762,150 _ Deductions Administration 10,035 10,035 29,072 (19,037) 19,744 Pension benefits and refunds 1,230,000 1,230,000 1,137,884 92,116 1,084,489 Total deductions 1,240,035 1,240,035 1,166,956 73,079 1,104,233 Change in net assets $ 960,130 $ 960,130 1,514,328 $ 554,198 657,917 Net assets-beginning 20,053,194 19,395,277 Net assets-ending $ 21,567,522 $20,053,194 -100- STATISTICAL SECTION Statistical Section This part of the Village's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures,and required supplementary information says about the Village's overall financial health. Contents Paqe Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. 101 - 105 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate it's property and sales taxes. 106- 109 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future. 110- 112 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place and to help make comparisons over time and with other governments. 113- 122 Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's financial information relates to the services the Village provides and the activities it performs. 123- 124 Sources: Unless otherwise noted,the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Village implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. Village of Oak Brook,Illinois Net Assets by Component Last Three Fiscal Years Fiscal Year 2004 2005 2006 Govemmental Activities Invested in Capital Assets Net of Related Debt $ 61.8 $ 63.3 $ 63.0 Restricted 0.8 0.6 - Unrestricted 15.8 16.2 17.7 Total Governemntal Activities $ 78.4 $ 80.1 $ 80.7 _ Business-type Activities Invested in Capital Assets Net of Related Debt $ 24.0 $ 23.8 $ 23.3 Restricted - - - Unrestricted 2.5 4.0 5.0 Total Business-type Activities $ 26.5 $ 27.8 $ 28.3 Primary Government Invested in Capital Assets Net of Related Debt $ 85.8 $ 87.1 $ 86.3 Restricted 0.8 0.6 - Unrestricted 18.3 20.2 22.7 Total Primary Government $ 104.9 $ 107.9 $ 109.0 ._ Data Source Audited Financial Statements Data in millions - 101 - Village of Oak Brook,Illinois Change in Net Assets Last Three Fiscal Years Fiscal Year 2004 2005 2006 Expenses Governmental Activities General Government $ 4.5 $ 4.3 $ 4.7 Public Safety 10.1 11.3 12.0 Public Works 3.7 4.6 4.1 Culture and Recreation 1.7 1.7 1.9 Interest on Long-Term Debt 0.2 0.1 0.1 Total Governemntal Activities Expenses 20.2 22.0 22.8 Business-type Activities Water 4.3 4.5 3.9 Sports Core 3.4 3.4 3.7 Total Business-type Activities Expenses 7.7 7.9 7.6 Total Primary Government Expenses $ 27.9 $ 29.9 $ 30.4 Program Revenues Governemntal Activities Charges for Services General Government $ 1.2 $ 1.1 $ 1.2 Public Safety 0.8 0.8 0.8 Other Activities 0.0 0.0 0.0 Operating Grants and Contributions 0.4 2.8 0.3 Total Governmental Activities Program Revenues 2.4 4.7 2.3 Business-type Activities Charges for Services Water 4.0 4.5 4.4 Sewer 3.3 3.4 3.6 Total Business-type Activities Program Revenues 7.3 7.9 8.0 Total Primary Government Program Revenues $ 9.7 $ 12.6 $ 10.3 _ Net(Expense)Revenue Governmental Activites $ (17.8) $ (17.3) $ (20.5) Business-type Activities (0.4) - 0.4 '- Total Primary Government Net(Expense) Revenue $ (18.2) $ (17.3) $ (20.1) - 102- Village of Oak Brook,Illinois Change in Net Assets - Last Three fiscal Years Fiscal Year 2004 2005 2006 - General Revenues and Other Changes in Net Assets Governmental Activities - Taxes Sales and Local Use Taxes $ 11.9 $ 13.0 $ 14.2 Utility 4.3 4.3 3.8 - Other 1.3 1.6 1.5 Investment Earnings - - 0.7 _ Miscellaneous - - 0.2 Transfers - - - Total Governemntal Activities 17.5 18.9 20.4 Business-type Activities Investment Earnings - 0.1 0.2 Miscellaneous 0.1 1.1 - Transfers - - - - Total Business-type Activities 0.1 1.2 0.2 Total Primary Government $ 17.6 $ 20.1 $ 20.6 Change in Net Assets Governmental Activites $ (0.3) $ 1.6 $ (0.1) Business-type Activities (0.3) 1.2 0.6 - Total Primary Government Change in Net Assets $ (0.6) $ 2.8 $ 0.5 Data Source Audited Financial Statements - Data in millions - 103- Village of Oak Brook,Illinois Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 General Fund Reserved $ 654,721 $ 654,729 $ 755,284 $ 794,572 $ 2,915,147 $ 1,142,795 $ 1,290,284 $ 1,292,859 $ 1,291,561 $ 1,292,073 Unreserved 16,009,242 17,984,298 18,743,688 19,577,513 14,367,995 10,479,787 9,802,818 9,949,121 11,651,504 11,731,876 Total General Fund $ 16,663,963 $ 18,639,027 $ 19,498,972 $ 20,372,085 $ 17,283,142 $ 11,622,582 $ 11,093,102 $ 11,241,980 $ 12,943,065 $ 13,023,949 Infrastructure Fund Unreserved $ 2,495,918 $ 2,436,618 $ 2,172,454 $ 2,725,747 $ 1,936,562 $ 2,027,275 $ 2,316,583 $ 2,996,267 $ 1,696,960 $ 1,919,422 Total Infrastructure Fund $ 2,495,918 $ 2,436,618 $ 2,172,454 $ 2,725,747 $ 1,936,562 $ 2,027,275 $ 2,316,583 $ 2,996,267 $ 1,696,960 $ 1,919,422 All Other Governmental Funds Unreserved,reported in Special Revenue Funds $ 1,211,585 $ 855,979 $ 1,161,857 $ 952,428 $ 1,138,212 $ 1,163,310 $ 1,065,232 $ 850,871 $ 609,248 $ 780,902 Capital Project Fund - - - - - - - - - 15,156 Total All Other Governemntal Funds $ 1,211,585 $ 855,979 $ 1,161,857 $ 952,428 $ 1,138,212 $ 1,163,310 $ 1,065,232 $ 850,871 $ 609,248 $ 796,058 Data Source Audited Financial Statements -104- Village of Oak Brook,Illinois Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Revenues Sales Tax Revenue $ 11,001,446 $ 10,947,063 $ 11,204,642 $ 10,455,044 $ 9,307,134 $ 9,982,742 $ 9,749,858 $ 10,529,690 $ 10,497,102 $ 11,461,184 Non-home Rule Sales Tax - - - - - - 1,304,467 2,422,549 2,641,030 Other Intergovemmental 1,281,514 1,303,995 1,394,306 1,528,125 1,357,908 2,032,368 1,193,908 1,321,112 1,513,492 1,535,507 Utility Taxes 1,989,147 1,692,113 1,715,573 2,326,035 3,351,774 4,422,058 4,500,108 4,298,744 4,268,283 3,822,020 Hotel/Motel Taxes 312,383 330,953 338,951 353,692 308,101 297,911 306,365 323,325 349,615 416,507 Licenses and Permits 404,998 391,789 432,724 623,858 324,131 468,403 570,261 741,528 669,726 858,401 Charges for Services 305,137 364,650 425,752 389,557 374,409 560,204 703,634 745,027 791,638 835,390 Fines and Penalties 214,086 222,239 198,769 223,462 300,311 311,750 353,513 401,616 334,869 292,331 Investment Income 983,733 1,043,142 849,568 1,347,175 1,135,564 486,149 158,482 104,869 286,859 562,590 Donations - - - 400,000 25,000 410,000 - 15,000 25,311 Miscellaneous 246,490 603,548 665,606 1,679,561 97,185 100,766 228,477 176,630 166,340 190,225 Total Revenues 16,738,934 16,899,492 17,225,891 18,926,509 16,956,517 18,687,351 18,174,606 19,947,008 21,315,473 22,640,496 Expenditures General Government 3,402,007 3,307,267 3,686,573 4,042,910 4,054,334 4,391,793 4,811,984 4,769,485 4,070,435 5,052,804 Public Safety 6,847,213 7,017,793 7,443,818 8,228,147 8,976,293 9,269,396 9,537,454 9,590,916 11,158,837 12,047,821 Public Works 1,510,401 1,458,185 1,678,499 1,636,909 1,558,922 1,772,431 1,906,948 2,023,984 2,954,815 2,338,619 Culture and Recreation 1,010,800 1,056,802 1,144,361 1,104,942 1,245,024 1,603,019 1,554,606 1,563,457 1,594,661 1,855,514 Capital Outlay 2,170,265 2,592,487 2,479,181 2,802,209 9,378,189 6,999,580 1,139,208 1,009,984 1,001,532 855,582 Total Expenditures 14,940,686 15,432,534 16,432,432 17,815,117 25,212,762 24,036,219 18,950,200 18,957,826 20,780,280 22,150,340 Excess of Revenues over(under) Expenditures 1,798,248 1,466,958 793,459 1,111,392 (8,256,245) (5,348,868) (775,594) 989,182 535,193 490,156 Other Financing Sources(Uses) Transfers In 238,480 900,398 247,500 878,634 843,420 535,307 200,000 - - - Transfers Out (129,977) (807,198) (139,300) (772,034) (252,990) (396,707) - Installment Contract Proceeds 3,968,310 Sale of Capital Assets - - - 398,937 39,000 Total Other Financing Sources(Uses) 108,503 93,200 108,200 106,600 4,957,677 177,600 200,000 - - - Net Change in Fund Balances $ 1,906,751 $ 1,560,158 $ 901,659 $ 1,217,992 $ (3,298,568) $ (5,171,268) $ (575,594) $ 989,182 $ 535,193 $ 490,156 Data Source Audited Financial Statements -105- r r r ► r r r r r r r r r r r r r r Village of Oak Brook,Illinois Assessed Value and Actual Value of Taxable Property Last Ten Levy Years (data in thousands) Total Estimated Estimated Less: Total Taxable Direct Actual Actual Levy Residential Commercial Industrial Tax-Exempt Assessed Tax Taxable Taxable Year Property Property Property Property Value Rate Value Value 1996 $ 544,761 $ 394,187 $ - $ - $ 938,948 $ - $ 2,816,844 33.333% 1997 559,698 412,749 - - 972,447 - 2,917,341 33.333% 1998 580,753 424,344 - - 1,005,097 - 3,015,291 33.333% 1999 605,204 440,781 - - 1,045,985 - 3,137,955 33.333% 2000 636,436 464,032 - - 1,100,468 - 31301,404 33.333% 2001 681,876 499,605 - - 1,181,481 - 3,544,443 33.333% 2002 752,206 541,598 - - 1,293,804 - 3,881,412 33.333% 2003 793,873 533,227 - - 1,327,100 - 3,981,300 33.333% 2004 869,932 555,935 - - 1,425,867 - 4,277,601 33,333% 2005 934,030 547,901 - - 1,481,931 - 4,445,793 33.333% Data Source Office of the County Clerk Note: Property in the Village is reassessed each year. Property is assessed at 33%of actual value. Other Information from Statement: The Statement requires that the information in this schedule be shown for each period for which levied and should be consistent with the periods shown in the schedule of direct and overlapping revenue rates and schedule of property tax levies and collections. Therefore, most Illinois governments should disclose this by the tax levy year, not the fiscal year. - 106- Village of Oak Brook, Illinois Property Tax Rates-Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Tax Rates Village of Oak Brook - - - - - - - - - - Basic Town 0.6095 0.6072 0.5834 0.5601 0.5379 0.5072 0.4685 0.4375 0.4120 0.3961 Junior College#502 0.2053 0.2042 0.2027 0.2006 0.1966 0.1930 0.2179 0.2097 0.1972 0.1874 Grade School#53 1.0458 1.0362 1.0237 0.9862 0.9689 0.9476 0.8877 0.8984 0.8527 0.8530 High School#86 1.4944 1.4885 1.5258 1.4881 1.4367 1.4250 1.3858 1.3094 1.2310 1.1910 Oak Brook Park District 0.1997 0.1932 0.1911 0.1877 0.1674 0.1538 0.1667 0.1666 0.1589 0.1621 Total Tax Rates 3.5547 3.5293 3.5267 3.4227 3.3075 3.2266 3.1266 3.0216 2.8518 2.7896 NOTE: Basic town includes all county,forest preserve and township rates. Property tax rates are per$100 of assessed valuation. Data Source Office of the County Clerk - 107- VILLAGE OF OAK BROOK, ILLINOIS Principal Revenue Taxpayers Current Year and Eight Years Ago 2006 1998* Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Crate&Barrel Costco Wholesale Entex Information Services, Inc. Macy's International Business Machines Macy's Home Store Lord&Taylor Neiman Marcus Marshall Fields Nordstrom Rack Marshall Fields Home Store Nordstrom, Inc. Neiman Marcus Sears Roebuck&Co. Nordstrom, Inc. Tiffany&Co. Saks&Company Walter E. Smithe Furniture Sears Roebuck&Co. Top 10 total $ 5,750,885 Top 10 total $ 5,805,099 Total Sales Tax Revenue $ 11,649,570 Total Sales Tax Revenue $ 11,127,796 Top 10 as a Percent of Sales Top 10 as a Percent of Sales Tax Revenue 49.37% Tax Revenue 52.17% Data Source Illinois Department of Revenue Note: Confidentiality rules of the Illinois Department of Revenue prohibit disclosure of individual taxpayer payment information. The data presented above is organized alphabetically with revenue for the top ten taxpayers reported in aggregate for the years presented. -- * 1998 is the most recent information available - 108- Village of Oak Brook, Illinois Direct and Overlapping Sales Tax Rates Last Ten Levy Years Village DuPage County Regional Village Fiscal Direct State DuPage County Water Transportation Non-Home Rule Total Year Rate Rate Rate Commission Authority Rate Rate 1997 1.00% 5.00% 025% 0.25% 0.25% 0.00% 6.75% 1998 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 1999 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2000 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2001 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2002 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2003 1.00% 5.00% 0.25% 0.25% 0.25% 0.00% 6.75% 2004 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% 2005 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% 2006 1.00% 5.00% 0.25% 0.25% 0.25% 0.25% 7.00% Data Source Village and County Records - 109- 1 I ! I I I I I I ! I ! I I I I I I I Village of Oak Brook, Illinois Ratios of Outstanding Debt By Type Last Ten Fiscal Years Govermental Business-Type Activities Activities Ratio of Total Total Fiscal Installment Installment Total Outstanding Debt Outstanding Year Notes Notes Capital Primary To Equalized Debt Per Ended Payable Payable Leases Government Assessed Valuation* Capita* 1997 $ - $ - $ - $ - 0.00% $ - 1998 - - - - 0.00% - 1999 - 820,000 - 820,000 0.08% 90.24 2000 - 2,555,000 107,381 2,662,381 0.25% 305.95 2001 3,810,000 1,710,000 73,880 5,593,880 0.51% 642.83 2002 3,615,000 1,485,000 38,136 5,138,136 0.43% 590.45 2003 3,410,000 1,360,000 - 4,770,000 0.37% 548.15 2004 3,195,000 1,205,000 - 4,400,000 0.33% 505.63 2005 2,970,000 1,045,000 - 4,015,000 0.28% 461.39 2006 2,735,000 885,000 - 3,620,000 0.24% 416.00 Note: Details of the Village's outstanding debt can be found in the notes to the financial statements. * See the Schedule of Demographic and Economic Information on page 113 for equalized assessed valuation of property and population data. Personal income information is not available. _ 110- Village of Oak Brook, Illinois Schedule of Direct and Overlapping Bonded Debt December 31,2006 _ (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 195,630,000 4.26 8,330,029 DuPage Forest Preserve 209,596,311 4.26 8,924,721 DuPage Water Commission 56,480,000 4.44 2,508,022 Park Districts 1,853,000 81.66 1,513,167 Elementary School Districts 87,835,000 3.47 3,044,782 High School Districts 96,150,642 7.23 6,947,783 Junior College 502 96,820,000 3.89 3,770,563 Unit District 205 85,028,936 6.55 5,568,498 TOTAL $ 829,393,889 $ 40,607,565 * 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 Village of Oak Brook,Illinois Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Legal debt limit $ 80,984,263 $ 83,873,588 $ 86,689,641 $ 90,216,217 $ 94,915,374 $ 101,902,766 $ 111,590,582 $ 114,462,334 $ 122,938,821 $ 127,816,578 Total net debt - - 820,000 2,555,000 5,520,000 5,100,000 4,770,000 4,400,000 4,015,000 3,620,000 applicable to limit Legal debt margin 80,984,263 83,873,588 85,869,641 87,661,217 89,395,374 96,802,766 106,820,582 110,062,334 118,923,821 124,196,578 Total net debt applicable 0.00% 0.00% 0.95% 2.83% 5.82% 5.00% 4.27% 3.84% 3.27% 2.83% to the limit as a percentage of debt limit Legal Debt Margin Calculation for Fiscal 2006 Assessed Value $ 1,481,931,334 Legal debt margin 8.625% Debt limit 127,816,578 Debt applicable to limit General obligation bonds 3,620,000 Legal debt margin $ 124,196,578 -112- VILLAGE OF OAK BROOK, ILLINOIS Demographic and Economic Information -- Last Ten Fiscal Years Equalized Assessed Per DuPage Co. Fiscal Value Capita Unemployment Year Population (EAV) EAU Rate 1997 9,087 (E) $ 938,947,979 $ 103,329 2.9% 1998 9,087 (E) 972,447,396 107,015 2.7% 1999 9,087 (E) 1,005,097,284 110,608 2.5% 2000 8,702 (A) 1,045,985,125 120,201 2.6% 2001 8,702 (E) 1,100,468,108 126,462 3.8% 2002 8,702 (E) 1,181,481,341 135,771 5.4% 2003 8,702 (E) 1,293,803,854 148,679 5.8% 2004 8,702 (E) 1,327,099,526 152,505 4.7% 2005 8,702 (E) 1,425,867,144 163,855 4.7% 2006 8,702 (E) 1,481,931,334 170,298 3.6% (A)Actual (E)Estimate Note: Personal Income data not available - 113- Village of Oak Brook, Illinois Top Five Principal Employers December 31,2006 Employer Rank Employees Oak Brook Center Mall 1 3,500 McDonald's Corporation 2 2,800 Ace Hardware 3 1,000 Advocate Health Care 4 580 Safeway, Inc. 5 400 Data Source Reference USA website; Oak Brook Chamber of Commerce Information prior to 2006 was unavailable. - 114- Village of Oak Brook,Illinois Retail Sales Volume-Top 25 Illinois Communities State Collection Period January 1,2006 Through December 31,2006 (1) Estimated Sales 2000 Municipality Rank Sales Per Capita Population Chicago 1 $ 22,425,497,700 $ 7,744 2,896,016 Schaumburg 2 3,139,333,504 41,643 75,386 Naperville 3 2,694,352,731 20,991 128,358 _ Kankakee 4 2,549,716,603 92,747 27,491 Rockford 5 2,517,144,481 16,768 150,115 Springfield 6 2,311,571,641 20,740 111,454 _ Peoria 7 2,152,407,261 19,059 112,936 Aurora 8 2,062,716,176 14,426 142,990 Joliet 9 2,003,757,443 18,864 106,221 Orland Park 10 1,885,988,575 36,924 51,077 Champaign 11 1,471,695,872 21,797 67,518 Niles 12 1,352,578,085 44,984 30,068 - Bloomington 13 1,345,104,230 20,755 64,808 Glenview 14 1,329,147,152 31,762 41,847 Downers Grove 15 1,327,533,581 27,246 48,724 Skokie 16 1,327,119,817 20,950 63,348 Sycamore 17 1,275,574,805 106,121 12,020 Gurnee 18 1,227,099,233 42,557 28,834 Oak Brook 19 1,164,957,187 133,872 8,702 Vernon Hills 20 1,147,023,737 57,009 20,120 _ Arlington Heights 21 1,133,462,183 14,908 76,031 Crystal Lake 22 1,126,918,927 29,656 38,000 Decatur 23 1,098,190,784 13,415 81,860 _ Tinley Park 24 1,090,693,894 22,535 48,401 Lombard 25 1,088,865,350 25,728 42,322 Source: Illinois Department of Revenue-Local Tax Allocation Division and the U.S.Census Bureau. Note(1): Distributions to municipalities of the 1%municipal tax were used to calculate the estimated retail sales. Actual sales tax amounts were received by the municipalities February 1,2006 through January 31, 2007. -115- Village of Oak Brook,Illinois _ Sales Tax Receipts Cash Basis Last Ten Fiscal Years Fiscal Year Village Share/ %Change from Non-Home rule %Change from Total %Change from Ended State Sales Preceding Sales Tax Preceding Sales Tax Preceding December 31 Tax Receipts Year Receipts Year Receipts Year 1997 $ 11,050,570 3.4% $ $ 11,050,570 3.4% 1998 11,057,573 0.1% 11,057,573 0.1% 1999 11,049,834 -0.1% - 11,049,834 -0.1% 2000 10,591,635 -4.1% 10,591,635 41% 2001 9,605,724 -9.3% 9,605,724 -9.3% 2002 9,570,001 -0.4% 9,570,001 -0.4% 2003 10,017,499 4.7% 10,017,499 4.7% 2004 10,368,148 3.5% 568,008 N/A 10,936,156 9.2% 2005 10,572,493 2.0% 2,422,386 326.5% 12,994,879 18.8% 2006 11,138,321 5.4% 2,559,593 5.7% 13,697,914 5.4% -- Source: Village Records Note: The Village's Non-Home rule sales tax was effective beginning July 1,2004. -116- Village of Oak Brook,Illinois State Sales Tax Receipts By Month Cash Basis Last Three Fiscal Years Percentage Change _ Fiscal Year Fiscal Year Fiscal Year From Preceding Year Month Ended 12/31104 Ended 12/31/05 Ended 12131/06 FY 2004 FY 2005 FY 2006 January $ 690,702 $ 862,489 $ 735,280 -8.1% 24.9% -14.7% February 976,888 928,682 914,236 -15.9% -4.9% -1.6% March 1,440,190 1,506,453 1,318,065 2.7% 4.6% -12.5% April 659,278 666,139 1,144,121 22.7% 1.0% 71.8% May 717,159 720,294 741,173 11.4% 0.4% 2.9% June 806,175 832,803 570,903 -1.9% 3.3% -31.4% July 834,897 782,475 1,104,467 11.5% -6.3% 41.2% August 840,879 835,369 876,142 10.3% -0.7% 4.9% _ September 883,310 954,669 977,050 4.9% 8.1% 2.3% October 844,206 782,822 882,382 8.3% -7.3% 12.7% November 832,838 870,260 940,842 11.2% 4.5% 8.1% December 841,626 830,038 933,660 3.0% -1.4% 12.5% Total $ 10,368,148 $ 10,572,493 $ 11,138,321 3.5% 2.0% 5.4% Source: Village Records -117- Village of Oak Brook,Illinois Non-Home Rule Sales Tax Receipts By Month Cash Basis Last Three Fiscal Years '— Percentage Change Fiscal Year Fiscal Year Fiscal Year From Preceding Year Month Ended 12/31/04 Ended 12/31/05 Ended 12/31/06 FY 2004 FY 2005 FY 2006 January $ - $ 192,938 $ 167,858 - NIA -13.0% February - 216,783 212,699 - N/A -1.9% March - 356,047 311,297 - N/A -12.6% April - 149,451 265,745 - N/A 77.8% -- May - 168,250 168,411 - N/A 0.1% June - 193,372 137,962 - NIA -28.7% July - 180,858 250,291 - N/A 38.4% August - 192,941 199,279 - NIA 3.3% September - 218,815 225,858 - N/A 3.2% _ October 190,992 179,313 201,426 N/A -6.1% 12.3% November 181,736 186,759 203,238 N/A 2.8% 8.8% December 195,280 186,859 215,529 N/A -4.3% 15.3% Total $ 568,008 $ 2,422,386 $ 2,559,593 N/A 326.5% 5.7% Source: Village Records Note: The Village's Non-Home rule sales tax was effective July 1,2004 with collections beginning in October 2004. -118- Village of Oak Brook,Illinois Sales Tax By Category Last Ten Fiscal Years Fiscal Years 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 General Merchandise $ 2,473,787 $ 2,687,252 $ 2,858,100 $ 2,881,090 $ 2,863,474 $ 2,727,372 $ 2,752,128 $ 2,979,121 $ 2,243,966 $ 3,031,452 Food 48,985 41,468 47,704 54,930 55,395 50,868 51,362 40,239 41,125 46,714 Drinking and eating places 796,508 860,026 841,856 901,251 938,849 956,286 968,701 1,075,685 1,105,997 1,181,813 Apparel 2,678,166 2,738,660 2,742,262 2,667,952 2,524,261 2,551,474 2,619,437 2,683,775 2,813,176 3,051,925 Furniture,H.H.and radio 2,294,754 2,396,908 1,985,631 939,859 632,564 577,992 824,925 917,782 945,017 961,241 Lumber,building and hardware 29,535 55,602 67,238 79,920 82,726 91,162 120,341 113,660 105,873 104,720 Automotive and filling stations 38,522 48,750 38,754 166,039 538,037 947,990 1,013,497 1,211,391 1,333,253 1,465,864 Drugs and other retail 781,918 856,428 916,004 1,208,582 1,150,466 1,445,340 1,107,775 1,156,873 1,179,604 1,285,354 Agriculture and all others 1,455,076 1,276,603 1,516,202 1,282,233 671,440 423,268 300,850 304,287 397,129 451,957 Manufacturers 307,485 166,099 91,391 91,552 53,079 96,147 50,297 75,179 77,311 68,531 Total $ 10,904,736 $ 11,127,796 $ 11,105,142 $ 10,273,408 $ 9,510,291 $ 9,867,898 $ 9,809,313 $ 10,557,992 $ 10,242,451 $ 11,649,570 Village direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Source: Illinois Department of Revenue-Local Tax Allocation Division Note: Gross receipts include both Cook and DuPage County 1%municipal sales tax. Amounts reflect sales tax collected by the Village between February 1 and January 31 as reported by the State. -119- Village of Oak Brook,Illinois Non-Home Rule Sales Tax By Category Last Ten Fiscal Years Fiscal Years 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 General Merchandise $ - $ $ $ $ - $ $ $ 382,923 $ 556,016 $ 743,530 Food - 2,007 4,444 5,150 Drinking and eating places - 142,641 275,357 294,331 Apparel - 373,434 702,672 762,294 Furniture,H.H.and radio - 126,581 231,825 240,036 Lumber,building and hardware - 14,797 26,448 26,171 Automotive and filling stations - 96,769 183,613 204,893 Drugs and other retail - 147,168 260,634 278,768 Agriculture and all others - 36,238 83,805 108,407 Manufacturers - 10,196 19,327 17,079 Total $ $ $ $ $ $ $ $ 1,332,753 $ 2,344,139 $ 2,680,660 Village non-home rule sales tax rate 0.25% 0.25% 0.25% Source: Illinois Department of Revenue-Local Tax Allocation Division Note: Gross receipts include both Cook and DuPage County 1%municipal sales tax. Amounts reflect sales tax collected between February 1 and January 31 as reported by the State. Note: The Village's Non-Home rule sales tax was effective July 1,2004. -120- Village of Oak Brook,Illinois Budgeted Full-Time Equivalent Employees Last Ten Fiscal Years Function/Program 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 111 Board of Trustees 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.00 112 Village Clerk 1.50 1.50 2.50 2.00 2.50 2.50 2.50 2.50 2.75 2.75 121 Legal 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.25 0.25 0.25 131 General Management 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.50 3.50 3.25 132 Human Resources 0.75 0.75 0.75 1.00 1.00 1.00 1.00 1.00 1.00 1.00 134 Risk Management 0.25 0.25 0.25 0.50 0.50 0.50 0.50 0.50 0.50 0.50 136 General Services 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 137 Business Licenses - - - - 0.25 141 Purchasing 1.25 1.25 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 151 Information Services 1.75 1.75 2.50 3.50 1 3.50 3.50 3.50 3.50 3.50 3.50 Legislative and General Management Total 11.50 11.50 13.50 14.50 15.00 15.00 15.00 14.50 14.75 15.25 211 Financial Services Management 1.25 1.25 1.25 1.00 1.00 1.00 1.00 1.00 1.00 1.00 221 Accounting and Reporting 4.25 4.25 4.25 4.50 5.00 5.00 4.50 4.501 4.50 4.50 Financial Services Total 5.50 5.50 5.50 5.50 6.00 6.00 5.50 5.50 5.50 5.50 321 Buildings and Grounds 2.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 1.00 341 Garage Operations 1.50 1.50 1.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 351 Water Operations 6.00 6.00 6.00 6.00 6.00 6.00 7.00 7.00 7.50 7.50 360 Public Works Management 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 361 Streets-General Salaries 9.00 9.00 9.00 8.00 1 8.00 8.00 8.00 8.00 8.00 8.00 Public Works Total 21.50 20.50 20.50 20.00 21.00 21.00 21.00 21.00 21.50 21.50 460 Engineering 4.00 4.00 4.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 Engineering and Capital Projects Total 4.00 4.00 4.00 5.00 5.00 4.00 4.00 4.001 4.00 4.00 511 Library General Operations 4.25 4.75 5.25 5.25 5.75 7.00 7.00 7.00 7.00 7.00 521 Technical Services 1.50 2.00 2.00 2.25 2.25 2.50 2.50 2.50 2.50 2.50 531 Reference and User Services 2.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 541 Youth Services 1.75 1.75 1.75 1.75 1.75 2.75 2.75 2.75 2.75 2.75 Library Total 9.50 11.00 '11'.501 11.751 12.251 14.751 14.751 14.751 14.75 14.75 (Continued) -121 - 1 I I I I I I I I I I I 6 I I I I I I I I I 1 I I I I I I I I I I I I I I Village of Oak Brook,Illinois Budgeted Full-Time Equivalent Employees(Continued) Last Ten Fiscal Years Function/Program 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 611 Police Services Management 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 3.00 3.00 621 Police Field Services 32.00 32.00 32.00 33.00 36.00 36.00 33.00 35.00 37.00 35.00 631 Police General Support 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.50 632 Police Investigations 8.00 8.00 8.00 8.00 8.00 8.00 8.00 6.00 6.00 6.00 633 Village Communications Center 9.00 9.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 11.00 634 Police Records 4.50 4.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 635 Police Public Relations/Crime Prevention 1.00 1 2.00 2.00 2.00 1 2.00 2.00 2.00 2.00 1.00 2.00 Police Total 58.50 59.00 60.00 62.00 65.00 65.00 62.00 62.00 62.00 62.50 700 Fire and EMS-General Salaries*" 31.00 31.00 31.00 33.00 36.00 33.00 33.00 33.00 33.00 33.00 711 Rescue and Fire Service Management 2.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 741 Fire Prevention and Public Safety Education 2.75 2.75 2.75 2.00 2.00 2.00 2.00 2.00 2.00 2.00 742 Planning and Zoning 1.75 1.75 1.75 Fire Total*** 35.75 35.75 35.75 38.00 41.00 38.00 38.001 38.00 38.00 38.00 811 Sports Core General Operations 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 2.75 2.75 821 Sports Core Food&Beverage Operations 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 1.50 1.50 831 Golf Club General Operations 2.25 2.25 2.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 834 Golf Course Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Sports Core Total 9.50 9.50 9.50 11.50 11.50 11.50 11.501 11.50 10.50 10.50 911 Community Development Management 2.00 2.00 2.00 2.00 2.00 2.00 2.00 921 Code Enforcement 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Community Development Total 0.00 0.00 0.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 GRAND TOTAL ALL DEPARTMENTS i 155.75 156.751 160.25 173.251' 73.25 181.75 180.25 176.75 176.25 176.001 177.00 *Summary represents full-time equivalent positions not including seasonal,temporary or situational employees. Regular part-time employee hours have been rounded to the nearest quarter full-time equivalent. **Six contract firefighter/paramedics are used to supplement the full-time complement of firefighter/paramedics. ***Part-time positions that are filled by off-duty full-time Fire Department personnel are not included. These positions include Fire Prevention Inspectors, Building Inspectors, Administrative Aide,EMS Director,Public Safety Information Coordinator,and CPR Coordinator. -122- Village of Oak Brook,Illinois Operating Indicators Last Ten Fiscal Years Function/Program 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Public Safety Police Physical arrests 361 380 290 344 341 356 313 364 357 330 Parking violations 2,898 2,497 2,180 2,714 2,496 1,908 2,376 1,345 1,112 579 Traffic violations 3,985 4,308 4,211 4,295 5,982 5,228 5,247 4,813 4,328 4,164 Fire EMS Incidents 988 1,115 1,076 1,041 1,073 1,022 1,049 1,016 949 716 Fire Incidents 1,021 1,188 1,206 1,460 1,675 743 747 1,075 1,059 1,138 Communications Center Police calls dispatched 10,210 10,574 9,624 10,120 9,823 9,507 9,597 10,142 11,766 10,864 Fire/EMS calls dispatched 1,021 1,867 1,852 1,882 1,944 1,765 2,224 2,091 2,148 2,013 Water New water meters installed 68 21 25 35 41 46 39 38 47 31 Water main breaks repaired 61 45 88 62 50 70 78 71 110 63 Water pumped(Mil.Gals.) 1,342 1,419 1,476 1,488 1,417 1,608 1,513 1,375 1,530 1,261 Library Total Circulation 46,565 48,857 52,961 54,317 63,000 73,725 92,066 96,024 98,754 96,414 Avg.Daily Circulation 137 145 157.6 160.2 185.8 236.3 270.8 280.8 289.6 286.1 Total Holdings 44,574 48,080 52,354 54,918 56,189 61,108 83,115 89,292 96,721 103,951 Community Development Building permits issues 549 847 803 825 742 819 757 891 903 947 Inspections n/a n/a n/a n/a n/a n/a n/a n/a 1,129 2,268 Estimated construction value $ 52,948,450 $ 74,003,014 $ 86,413,716 $ 96,296,075 $ 66,309,097 $ 40,587,413 $ 57,455,832 $ 78,447,306 $ 73,549,628 $ 76,294,249 Sports Core B&T Recreation Membership 346 322 293 320 262 245 344 343 311 302 Social Memberships 99 89 89 104 98 148 88 189 122 106 Total Events 287 320 327 385 316 313 306 252 215 224 Golf Memberships 292 284 290 315 296 283 267 263 260 262 Total Golf Rounds 48,236 50,727 47,844 47,458 48,231 44,134 45,637 44,422 44,005 42,324 Data Source Various village departments n/a•Information was unavailable for this given period. -123- 1 I I I I I I I I I I I I ! I ! I I I Village of Oak Brook,Illinois Capital Asset Statistics Last Ten Fiscal Years Function/Program 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Area patrols 5 5 5 5 5 5 5 5 5 5 Patrol units 15 15 15 15 15 15 15 15 15 15 Fire Fire stations 2 2 2 2 2 2 2 2 2 2 Fire trucks 7 7 7 7 7 7 7 7 7 7 Public Works Arterial streets(miles) 8.5 8.5 8.5 8.5 8.5 8.5 8.5 8.5 9 9 Residential streets(miles) 55 55 55 55 55 55 48 48 49 49 Streetlights 453 453 573 573 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 11 11 11 11 Water Water mains(miles) 115 115 115 115 115 115 115 115 115 115 Fire hydrants 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Storage capacity(gallons) 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. 8.0 mil. Data Source Various village departments -124-