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CAFR (Year Ended December 31, 2018)
VILLAGE OF OAK BROOK COMPREHENSIVE AN NUAL FINANCIAL REPORT For the Year Ended December 31, 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE VILLAGE OF OAK BROOK, ILLINOIS As of and for the Year Ended December 31, 2018 Prepared by the Finance Department Jason Paprocki Finance Director VILLAGE OF OAK BROOK TABLE OF CONTENTS As of and for the Year Ended December 31, 2018 Page(s) INTRODUCTORY SECTION Letter of Transmittal i - vi Certificate of Achievement for Excellence in Financial Reporting vii Organization Chart viii Principal Officials ix FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 - 3 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis 4 - 16 BASIC FINANCIAL STATEMENTS Government-W ide Financial Statements Statement of Net Position 17 Statement of Activities 18 - 19 Fund Financial Statements Balance Sheet - Governmental Funds 20 - 21 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23 - 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 25 Statement of Net Position - Proprietary Funds 26 - 29 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 30 - 31 Statement of Cash Flows - Proprietary Funds 32 - 35 Statement of Fiduciary Net Position - Fiduciary Funds 36 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 37 Index to Notes to Financial Statements 38 Notes to Financial Statements 39 - 85 REQUIRED SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 86 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2018 REQUIRED SUPPLEMENTARY INFORMATION (cont.) Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Hotel/Motel Tax Fund 87 Historical Pension and Other Postemployment Benefit Plan Information Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 88 Illinois Municipal Retirement Fund - Schedule of Employer Contributions 89 Police Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 90 Police Pension Fund - Schedule of Employer Contributions 91 - 92 Police Pension Fund - Schedule of Investment Returns 93 Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension Liability and Related Ratios 94 Firefighters' Pension Fund - Schedule of Employer Contributions 95 - 96 Firefighters' Pension Fund - Schedule of Investment Returns 97 Other Postemployment Benefit Plan - Schedule of Changes in the Total OPEB Liability 98 Notes to Required Supplementary Information 99 SUPPLEMENTARY INFORMATION General Fund Schedule of Revenues - Budget and Actual - General Fund 100 Schedule of Expenditures - Budget and Actual - General Fund 101 - 105 Governmental Funds Combining Balance Sheet - Nonmajor Governmental Funds 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 107 Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 108 Infrastructure Fund - Major Capital Projects Fund 109 - 112 Promenade TIF Fund - Major Capital Projects Fund 113 Proprietary Funds Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 114 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2018 SUPPLEMENTARY INFORMATION (cont.) Schedule of Operating Expenses - Budget and Actual - W aterworks System Fund - Major Enterprise Fund 115 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Sports Core Fund - Major Enterprise Fund 116 Schedule of Operating Revenues - Budget and Actual - Sports Core Fund - Major Enterprise Fund 117 Schedule of Operating Expenses - Budget and Actual - Sports Core Fund - Major Enterprise Fund 118 - 120 Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Golf Surcharge Fund - Nonmajor Enterprise Fund 121 Internal Service Funds Combining Statement of Net Position - Internal Services Funds 122 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 123 Combining Statement of Cash Flows - Internal Service Funds 124 - 125 Statement of Revenues, Expenses and Changes in Net Position - Budget and Actual Self-Insurance Fund - Internal Service Fund 126 Garage Fund - Internal Service Fund 127 Capital Replacement Fund - Internal Service Fund 128 Fiduciary Funds Combining Statement of Fiduciary Net Position - Pension Trust Funds 129 Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 130 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years 131 - 132 Changes in Net Position - Last Ten Fiscal Years 133 - 136 Fund Balances of Governmental Funds - Last Ten Fiscal Years 137 - 138 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 139 - 140 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 141 - 142 Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 143 - 144 Principal Revenue Taxpayers - Current and Nine Years Ago 145 Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 146 - 147 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 148 - 149 VILLAGE OF OAK BROOK TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2018 STATISTICAL SECTION (cont.) Schedule of Direct and Overlapping Bonded Debt 150 Legal Debt Margin Information - Last Ten Fiscal Years 151 - 152 Demographic and Economic Information - Last Ten Fiscal Years 153 Principal Employers - Current and Eight Years Ago 154 Retail Sales Volume - Top 25 Illinois Communities 155 Sales Tax Receipts - Cash Basis - Last Ten Fiscal Years 156 State Sales Tax Receipts by Month - Cash Basis - Last Five Fiscal Years 157 - 158 Non-Home Rule Sales Tax Receipts by Month - Cash Basis - Last Ten Fiscal Years 159 - 160 Sales Tax by Category - Last Ten Fiscal Years 161 - 162 Non-Home Rule Sales Tax by Category - Last Ten Fiscal Years 163 - 164 Budgeted Full-Time Equivalent Employees - Last Ten Fiscal Years 165 - 166 Operating Indicators - Last Ten Fiscal Years 167 - 168 Capital Assets Statistics - Last Ten Fiscal Years 169 - 170 Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523-2255 Website www.oak-brook.org Administration 630.368.5000 FAX 630.368.5045 Community Development 630.368.5101 FAX 630.368.5128 Engineering Department 630.368.5130 FAX 630.368.51 2 8 Fire Department 630.368.5200 FAX 630.368.5251 Police Department 630.368 .8700 FAX 630.368.8739 Public Works Department 630 .368.5270 FAX 630.368.5295 Oak Brook Public Libr.ill]'. 600 Oak Brook Road Oak Brook , IL 6052 3-2200 630 .368 . 7700 FA'( 630.368.77 lJ4 ()ak_I~rook Sports C ore Bath & Tennis Club 700 Oak Brook Road Oak Brook, IL 60523 -4600 630.368 .64 20 FAX 630.368 .64 39 Golf Club 2606 York Road Oak Brook. IL 60523 -4602 A30.368.6400 FAX 630.368.6419 May 21, 2019 Honorable Gopal Lalmalani, Village President Board of Trustees Citizens of the Village of Oak Brook, Illinois: Illinois state statute requires that all general-purpose local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with United States Generally Accepted Accounting Principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of independent licensed certified public accountants. This report is published to fulfill that requirement for the year ended December 31, 2018. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures , rest with the management of the Village. We believe to the best of our knowledge , as presented, the data is accurate in a ll material respects and presented in a manner designed to fairly set forth the financial position and results of the operations. Management of the Village is responsible for establishing and maintaining internal controls designed to ensure that the assets of the Village are protected from loss, theft or misuse and to ensure that sufficient, reliable, adequate accounting data is compiled for the preparation of financial statements in conformity with GAAP . Internal accounting controls have been designed to provide reasonable rather than absolute assurance that the financials statements will be free from material misstatement. We be lieve that the Village's internal controls adequately safeguard assets and provide reasonable assurance of properly recorded financial trans actions . In addition, the Village maintains budgetary controls. The objective of these controls is to ensure compliance with legal provision s embodied in the annual budget approved by the Village Board. All disbursements recei ve approval from the Board of Trustee s. The Village also m ai ntain s an encumbranc e system that is u se d as an ext e nsio n of forma l bud getary integration. The Village's financi al statements have been audited by Baker Tilly Virchow Krause LLP, a firm of licen sed certifi ed public acco untants. The independent audit is to provide reasonable assurance that the fin anc ia l statements of the Village of Oak Brook are free of material misstatem ents. ii The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing accounting principles used and significant estimates made by management; and the evaluation of the overall financial statement presentation. Based upon the audit for the year ending December 31, 2018, the independent auditors concluded, that there was a reasonable basis for rendering an unmodified opinion on the Village’s financial statements. The independent auditors’ report is presented as the first component of the financial section of this report. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. 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 (I-294), running along the Village’s eastern boundary, provides rapid access to the northern and southern suburbs, and into Wisconsin and Indiana. The East- West Tollway (I-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 bounded on the north by the communities of Lombard, Villa Park, Elmhurst and Oak Brook Terrace and on the south by Downers Grove, Westmont, Clarendon Hills and Hinsdale. 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 municipal services including general government, public safety (police and fire), public works, road maintenance, community development and recreation facilities and a free public library. For additional information concerning the Village, please visit our website at www.oak- brook.org. 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 large corporations have facilities in the Village, including the corporate headquarters of TreeHouse Foods, Hub Group, and Ace Hardware. 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. Oak iii Brook is comprised of 39,267 private sector jobs (2018, IDES, Where Workers Work); of them, 16.1% are in the Management of Companies and Enterprises field, 15.7% are in the Administrative and Support field, Waste Management, and Remedial services, and 11.3% are in the health care and social assistance field. 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. Overall, the Village has seen many revenue sources show signs of improvement compared to levels seen during the economic crisis in 2009. With sales taxes being the largest source of General Fund revenue, the local and national economy has a significant effect on the amount of revenue the Village receives. Sales tax revenue increased $204,391, or 1.7% compared to last year’s revenue. The increase was primarily due to the reopening of businesses at Oakbrook Center and general inflationary growth. Overall, sales tax revenue has increased nearly $1.7 million since 2008. Oak Brook’s estimated construction value indicates a positive trend between the years of 2013 through 2018, with the high coming in 2017 at $176.5 million. Total construction value in 2018 decreased $40.8 million compared to 2017 due to many large projects, such as Christ Church and Midwest Orthopedics at Rush being constructed during 2017. Total building permits issued during 2018 came in at 908, which is a decrease of 35 compared to 2017 permits. Overall, development has been strong over the past five years and is expected to remain strong through 2019 and beyond. The Village anticipates a number of large development projects to be presented in the near future. New Commercial Development There have been many changes and improvements in Oakbrook Center. The former Sears building continues to be under redevelopment with new businesses. A smaller Sears store, Ballard Designs, and LL Bean have opened in the former Sears space. There are still plans for Kidzania, Lifetime Fitness, and Lands End to occupy the remaining former Sears space during 2019. Carvana is currently constructing a vehicle distribution site and is expected to be operational by spring 2019. Rush University Medical Center and Midwest Orthopedics broke ground in early 2017 on a 100,000 square-foot, $65 million professional building. This facility officially opened in early 2019. In addition, Hub Group plans to expand its corporate headquarters with construction expected to begin in late 2019. The Village is also expects two new residential buildings to begin construction during 2019. Senior Lifestyle plans to build a $79 million 200-unit luxury apartment complex for senior citizens. Construction is expected to being in mid-2019, with completion coming in late 2020 or early 2021. Jupiter Realty is planning a $100 million 90-unit luxury condominium building. Construction is expected to begin in summer 2019, with completion coming in 2021. iv Long-term Financial Planning The Village uses a number of processes to accomplish financial planning which are outlined as follows: Goals and Objectives – this is an annual process in which the Village Board and staff express specific objectives 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 Plan – this plan is based on the Village’s pavement management database and on a visual inspection of every public street segment in the Village. The Plan, which is updated annually, includes a long-range schedule of roadway maintenance activities as well as cost projections over the next ten-year period in order to plan for the orderly maintenance of the Village’s roadway system. Five-Year Financial Plan – this document is prepared annually in order to provide the Village Board and the community with a five-year projection of the financial condition of each of the twelve funds that comprise the Village’s financial structure. This document is not as precise as the annual budget but it does project both revenues and expenditures for each of the next five years that can assist in identifying positive and negative trends. Annual Budget – using the information gathered through the goals and objectives process, roadway maintenance plan, and five-year financial plan, the annual line item budget is prepared. The budget is structured according to cost centers (called “programs”) and sets the spending plan for the coming year. The foundation 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 as having sufficient time to address any economic downturns. The soundness of this financial policy has proven itself as the Village has been able to maintain adequate cash reserves in this recessionary environment. Major Initiatives Providing safe, efficient, and well maintained infrastructure continues to be a major goal for the Village. The Village has accomplished many things during 2018 to help realize this goal. v In 2018, the Police Department detention zone and sally port addition was completed, the lower level restroom renovation project at the Butler Government Center was completed, new carpet was installed in the west wing of the Butler Government Center, and six vehicles were replaced. During 2018, the Village continued a Village-wide water meter replacement project. The project is nearly complete as of the end of 2018, with a few remaining meters that will be replaced in early 2019. At completion, approximately 5,000 old water meters will be replaced at a total cost of $3 million. Various street improvements were performed throughout the Village, including the York Road widening over I-88 and various Village-wide street resurfacing projects. The Village also began engineering and design for numerous projects, including Windsor Drive and the York and Harger intersection. There were also many improvements made at the Sports Core this year. The Bath and Tennis Clubhouse received many upgrades, new signs at the Bath and Tennis Club and Golf Club, installation of a new emergency generator at the Bath and Tennis Club, Golf Club patio renovation, and the replacement of the golf cart fleet. The 2019 Budget includes a number of capital projects, including the construction of a Salt Storage facility, the Jorie, Kensington, and York median beautification project, the Harger Road bike path construction, Bath and Tennis Club pool upgrades, Golf Club pro shop upgrades, and various water main replacements. For a full listing of planned capital improvements, you can review the 2019-2023 Five-Year Plan at: http://www.oak- brook.org/304/Financial-Documents. 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, 2017. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village has successfully obtained the Certificate of Achievement for 41 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. In addition, the Village of Oak Brook received the GFOA's Distinguished Budget Presentation Award for its annual budget for the 2018 fiscal year. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This is the sixth consecutive year the Village has received this award. The preparation of this report could not be possible 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. Jason Paprocki Finance Director VI Government Finance Officers Association 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, 2017 .~p.~ Executive Director/CEO ResidentsofOak BrookVillage Presidentand Board of TrusteesVillage Clerk Village Manager Village Attorney (General)Finance DirectorChief of Police Fire Chief Public Works Director Development ServicesDirectorHead Librarian Golf Course Grounds Superintendent Boards andCommissionsVillage of Oak BrookOrganization ChartFiscal Year 2018Village Attorney(Labor) Information Technology Services Director Human Resources Director/Deputy Village Clerk ix VILLAGE OF OAK BROOK, ILLINOIS PRINCIPAL OFFICIALS December 31, 2018 Gopal Lalmalani, Village President Charlotte K. Pruss, Village Clerk BOARD OF TRUSTEES John Baar Philip Cuevas Michael Manzo Moin Saiyed Edward Tiesenga Asif Yusuf MANAGEMENT TEAM Riccardo Ginex Village Manager Jason Paprocki Finance Director Doug Patchin Public Works Director Tony Budzikowski Development Services Director James Fox Information Technology Director Barry Liss Fire Chief Jacob Post Head Librarian James Kruger Police Chief Sean Creed Golf Course Superintendent Kathryn Vonachen Human Resources Director/ Deputy Village Clerk INDEPENDENT AUDITORS' REPORT To the Honorable President and Board of Trustees Village of Oak Brook Oak Brook, Illinois Report on the Financial Statements <G bakertilly 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, 2018, and the related notes to the financial statements, which collectively comprise the Village of Oak Brook's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village of Oak Brook's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of Oak Brook's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2018 Baker Tilly Virchow Krause, LLP Page 1 To the Honorable President and Board of Trustees Village of Oak Brook 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, 2018 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note I, the Village of Oak Brook adopted the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, effective January 1, 2018. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. W e have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook's basic financial statements. The supplementary information as listed 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 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole for the year ended. Page 2 To the Honorable President and Board of Trustees Village of Oak Brook We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the Village of Oak Brook as of and for the year ended December 31, 2017 (not presented herein), and have issued our report thereon dated May 2, 2018, which contained unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information. The supplementary information for the year ended December 31, 2017 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2017 financial statements. The information has been subjected to the auditing procedures applied in the audit of the 2017 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended December 31, 2017. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Oak Brook's basic financial statements. The introductory and statisical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Oak Brook, Illinois May 21, 2019 Page 3 (See independent auditors’ report) 4 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2018 As the management of the Village of Oak Brook (the “Village”), we offer readers of the Village’s financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended December 31, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Transmittal Letter (beginning on page i) and the Village’s Financial Statements (beginning on page 17). This discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the Village’s financial activity, (3) identify changes in the Village’s financial position (its ability to address the next and subsequent year challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. HIGHLIGHTS Financial Highlights • For the year ending December 31, 2018, the Village’s total (combined governmental and business-type) assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $85.5 million (referred to as net position). • The Village implemented GASB Statement 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions during fiscal year 2018. This statement requires the total Other Postemployment Benefits (OPEB) liability to be recorded on the Village’s financial statements. As a result, a restatement was made to reduce beginning net position by $4.4 million in Governmental Activities and $0.3 million in Business- Type Activities. • The Village’s total restated net position increased by $4.2 million, or 5.2%, compared to the prior year. • The governmental activities reported total net position of $48.4 million, which is an increase of $3.3 million, or 7.3%, in comparison to the prior year restated balance. The unrestricted portion of the net position is a $32.3 million deficit, which is attributed to the Village’s unfunded pension and OPEB liabilities. • The business-type activities reported total net position of $37.1 million, which is an increase of $0.9 million, or 2.5%, in comparison to the prior year restated balance. The unrestricted portion of the net position is $7.3 million. • The Village had a total (governmental and business-type activities combined) unrestricted net position deficit of $25.0 million at December 31, 2018. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 5 • Total revenues increased $2.7 million, or 6.0%, in comparison to the prior year. Of the total increase, governmental activities revenues increased $3.0 million and business-type activities revenues decreased $0.3 million. • Total expenses increased $3.3 million, or 8.2%, in comparison to the prior year. Of the total increase, governmental activities expenses increased $2.4 million and business-type activities expenses increased $0.9 million. Government - Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the Village’s finances, in a manner similar to a private-sector business. The focus of the Statement of Net Position presents information on all of the Village’s assets/deferred outflows of resources and liabilities/deferred inflows of resources, with the difference between the two reported as net position. This statement combines and consolidates governmental fund’s current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements (see pages 17-19) distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village reflect the Village’s basic services, including administration, police, fire and emergency medical services, engineering, public works, library, and community development. The business- type activities of the Village, which are based on a fee for service designed to cover all or most of the cost of operation, include the waterworks system, operations of the Oak Brook Sports Core, and the collection of golf surcharge fees. 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. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 6 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 six 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, Hotel/Motel Tax Fund, Infrastructure Fund, and Promenade TIF Fund, all of which are considered to be “major” funds. Data from the other two governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major 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, except for the Foreign Fire Insurance fund. 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 25 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, the operations of the Oak Brook Sports Core, and the collection of the golf surcharge fees. 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. 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. The Golf Surcharge fund is considered to be a non- major enterprise fund. 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 26 through 35 of this report. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 7 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 Village does not adopt an annual budget for either of these funds. The basic fiduciary fund financial statements can be found on pages 36 and 37 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 Activities 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 39 through 85 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 pension obligations to provide benefits to its employees. Required supplementary information can be found on pages 86 through 99 of this report. The combining statements referred to earlier in connection with non-major governmental funds, non-major 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 106 through 128 of this report. Financial Analysis of the Village as a Whole Beyond presenting current year financial information in the government-wide and major individual fund formats, the Village also presents comparative information from the prior year in the Management’s Discussion and Analysis. By doing so, the Village is providing an additional means of analyzing its financial condition and financial position as of December 31, 2018. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 8 GOVERNMENT-WIDE STATEMENTS The Government-wide Financial Statements were designed so that the user can determine if the Village’s financial position has improved or deteriorated from the prior year. Statement of Net Position The following table reflects a Summary of Net Position for fiscal years 2018 and 2017. 2018 2017 2018 2017 2018 2017 Assets Current and Other Assets 44.1$ 40.8$ 9.3$ 8.6$ 53.4$ 49.4$ Capital Assets 65.5 61.8 29.8 29.9 95.3 91.7 Total Assets 109.6$ 102.6$ 39.1$ 38.5$ 148.7$ 141.1$ Deferred Outflows of Resources 7.7$ 6.8$ 0.2$ 0.7$ 7.9$ 7.5$ Liabilities Long-Term Liabilities 60.1$ 51.3$ 0.7$ 1.7$ 60.8$ 53.0$ Other Liabilities 4.5 2.9 0.7 1.0 5.2 3.9 Total Liabilities 64.6$ 54.2$ 1.4$ 2.7$ 66.0$ 56.9$ Deferred Inflows of Resources 4.3$ 5.7$ 0.8$ -$ 5.1$ 5.7$ NET POSITION Net Investment in Capital Assets 65.4$ 61.8$ 29.8$ 29.9$ 95.2$ 91.7$ Restricted 15.3 14.8 - - 15.3 14.8 Unrestricted (32.3) (27.1) 7.3 6.6 (25.0) (20.5) Total Net Position 48.4$ 49.5$ 37.1$ 36.5$ 85.5$ 86.0$ Table 1 Statement of Net Position Summary As of December 31, 2018 and 2017 (in millions) Governmental Activities Business-Type Activities Total Primary Government Cash and investments, which is included in current and other assets, increased $2.9 million, or 7.3% compared to the prior year. Total governmental and business-type cash was $42.8 million at December 31, 2018. The Village’s combined net position decreased from $86.0 million to $85.5 million, or $0.5 million, during 2018. The decrease is due to the implementation of GASB Statement 75, which decreased beginning net position $4.7 million, but was offset by a 2018 increase of $4.2 million. The Village’s combined unrestricted net position decreased $4.5 million during 2018. The unrestricted portion of net position remains a deficit balance due to the unfunded pension and OPEB liabilities. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 9 The net investment in capital assets is the largest portion of net position. This represents capital assets (land, buildings, improvements, equipment, infrastructure and construction in progress), net of accumulated depreciation, and the outstanding related debt used to acquire the assets. The Village uses these capital assets to provide services to its citizens and these assets are not available for future spending. For more detailed information, see the Statement of Net Position on page 17. Summary of Changes in Net Position The following table summarizes the revenues and expenses found on the Statement of Activities for 2018 and 2017: 2018 2017 2018 2017 2018 2017 Revenues Program Revenues Charges for Services 6.0$ 3.9$ 13.1$ 13.4$ 19.1$ 17.3$ Grants and Contributions 0.2 0.2 - - 0.2 0.2 General Revenues Sales and Local Use Taxes 18.6 18.3 - - 18.6 18.3 Utility Taxes 6.1 6.0 - - 6.1 6.0 Other Taxes 3.0 3.0 - - 3.0 3.0 Investment Income 0.6 0.3 0.1 0.1 0.7 0.4 Miscellaneous 0.2 - - - 0.2 - Total Revenues 34.7$ 31.7$ 13.2$ 13.5$ 47.9$ 45.2$ Expenses General Government 5.6$ 5.7$ -$ -$ 5.6$ 5.7$ Public Safety 18.9 17.4 - - 18.9 17.4 Public Works 5.0 3.8 - - 5.0 3.8 Culture and Recreation 1.7 1.8 - - 1.7 1.8 Waterworks System - - 8.8 7.9 8.8 7.9 Sports Core - - 3.5 3.5 3.5 3.5 Interest and Fiscal Charges 0.2 0.3 - - 0.2 0.3 Total Expenses 31.4$ 29.0$ 12.3$ 11.4$ 43.7$ 40.4$ Change in Net Position 3.3$ 2.7$ 0.9$ 2.1$ 4.2$ 4.8$ Net Position - Beginning of Year 49.5$ 46.8$ 36.5$ 34.4$ 86.0$ 81.2$ Restatements (4.4) - (0.3) - (4.7) - Net Position - Beginning of Year (Restated)45.1$ 46.8$ 36.2$ 34.4$ 81.3$ 81.2$ Net Position - End of Year 48.4$ 49.5$ 37.1$ 36.5$ 85.5$ 86.0$ Activities Activities Government Table 2 Statement of Activities Summary For the Fiscal Year Ended December 31, 2018 and 2017 (in millions) Governmental Business-Type Total Primary VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 10 Total revenues increased $2.7 million, or 6.0%, compared to the prior year. The increase is primarily from an increase in water sales revenue due to a rate increase, increases in building permit revenues from increased economic development, and an increase in ambulance service rates. Total expenses increased $3.3 million, or 8.2%, compared to the prior year, which is primarily due to the Village-wide water meter replacement project, an increase in the actuarially determined pension expense, increased street improvement projects, and design fees for future capital improvement projects. Governmental Activities Revenues – Governmental Activities For the fiscal year ended December 31, 2018, revenues totaled $34.7 million, an increase of $3.0 million from 2017. Revenue from sales and use taxes, which continues to be the Village’s largest revenue source, amounted to $18.6 million, or 53.6% of total revenue. Sales and use tax revenue increased $0.3 million, or 1.6%, from 2017 due to the reopening of various businesses during 2018 and a reduction of the State’s administration fee on collecting revenues from 2.0% to 1.5%. Utility taxes, which include the taxes imposed on electric, natural gas, and telecommunications services, were $6.1 million, or 17.6% of total revenue. Utility tax revenue increased $0.1 million, or 1.7%, from 2017 due to general inflationary increases. The “other taxes” classification includes a number of different revenue sources including income taxes, personal property replacement taxes, and hotel taxes. For 2018, these revenues were $3.0 million, or 8.6% of total revenues. Other taxes was flat in 2018 compared to 2017. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 11 The “charges for services” classification includes number of different licenses, permits, and fees. For 2018, these revenues were $6.0 million, or 17.3% of total revenues. Charges for services increased $2.1 million, or 53.8%, from 2017 due to increases in building permit revenue from various redevelopment projects and an increase in ambulance transit fees charged. Expenses by Function – Governmental Activities Expenses for the Village of Oak Brook for governmental activities totaled $31.4 million in 2018, an increase of $2.4 million from 2017. Changes by individual function include: • General government expenses were $5.6 million, a decrease of $0.1 million, or 1.8%, from 2017. This is primarily due to a reduction in liability insurance premiums. • Public Safety expenses were $18.9 million, an increase of $1.5 million, or 8.6%, from 2017. The increase is due to increases in personnel costs and annual pension contributions. Public safety expense also saw an increase in the annual recognition of actuarially determined pension expense due to unfavorable market conditions. • Public works expenses were $5.0 million, an increase of $1.2 million, or 31.6%, from 2017. The increase is due to street resurfacing projects and planning and design work for future projects. • Culture and recreation expenses were $1.7 million, a decrease of $0.1 million, or 5.6%, from 2017. The decrease is due to the completion of a median beautification project in 2017. There were no major projects during 2018. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 12 Business-type Activities The business-type activities net position increased $0.6 million, or 1.6%, compared to the prior year. The increase was a result of an increase of $0.9 million from 2018 activities, and reduced $0.3 million from a restatement due to the implementation of GASB 75. For business-type activities, revenues for the waterworks system were $9.8 million, which decreased by $0.1 million compared to the prior year, due to a decrease in water connection fees. Revenues for Sports Core were $3.2 million, which decreased by $0.2 million compared to the prior year, due to decreases in golf greens fees, food and beverage sales, and swimming and tennis lesson fees. Golf surcharge revenues were even with 2017 totals. For business-type activities, expenses for the waterworks system were $8.8 million, or 71.4% of total business-type expenses, which is an increase of $0.9 million from 2017. Sports Core expenses were $3.5 million, or 28.6% of total business-type expenses, which is even with 2017. Program Program Revenues Expenses Waterworks Sytem 9,818,258$ 8,819,043$ Sports Core 3,251,870 3,536,941 Golf Surcharge 106,267 - Total 13,176,395$ 12,355,984$ Revenues and Expenses - Business-Type Activites For the Fiscal Year Ended December 31, 2018 FINANCIAL ANALYSIS OF THE VILLAGES FUNDS Governmental Funds As noted earlier, the Village of Oak Brook uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of December 31, 2018, the governmental funds (as presented on the balance sheet on pages 20 through 21) had a combined fund balance of $37.1 million, which is an increase of $1.2 million over the prior year. The fund balance in the General Fund increased $0.7 million from 2017 to 2018, to a total of $21.8 million. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 13 Original Amended Budget Budget Actual Revenues Intergovernmental 13,610,200$ 13,610,200$ 13,900,471$ Utility Taxes 5,792,250 5,792,250 6,137,283 Licenses & Permits 1,784,070 1,784,070 3,185,402 Charges for Services 1,052,100 1,052,100 1,155,142 Other 728,750 728,750 1,119,962 Total Revenues 22,967,370$ 22,967,370$ 25,498,260$ Expenditures General Government 6,542,560$ 6,650,878$ 6,548,865$ Public Safety 16,748,565 16,804,715 16,610,925 Public Works 993,820 993,820 761,682 Culture and Recreation 889,845 893,875 878,135 Debt Service 263,350 263,350 - Total Expenditures 25,438,140$ 25,606,638$ 24,799,607$ Other Financing Sources (Uses) Installment Note Proceeds 2,475,165$ 2,475,165$ -$ Total Other Financing Sources (Uses)2,475,165$ 2,475,165$ -$ Change in Fund Balance 4,395$ (164,103)$ 698,653$ Table 3 General Fund Budgetary Highlights For the Fiscal Year Ended December 31, 2018 Intergovernmental revenues were over budget due a number of sources coming in higher than projections, but primarily to sales tax revenue receipts being $0.1 million higher than budget projections. Utility taxes were over budget by $0.3 million due to a projected business reduction in 2018 that did not occur. Licenses and permits revenue was $1.4 million over budget projections due to increased building permit revenue from commercial development and an increase in ambulance transit rates. Actual expenditures were $0.6 million below the original budget and $0.8 million below the amended budget. The Village continues to be conservative in its spending. The Village saw savings in personnel costs in 2018 compared to budget projections due to employee turnover. Budget Policy 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 VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 14 any variance exceeding $10,000 in a personnel series account and variances exceeding $2,500 in all other accounts. Capital Assets The following schedule reflects the Village’s capital asset balances as of December 31, 2018 and 2017. 2018 2017 2018 2017 2018 2017 Land and Land Right of Way 33.2$ 33.2$ 8.3$ 8.3$ 41.5$ 41.5$ Construction in Progress 1.7 1.2 0.5 - 2.2 1.2 Buildings and Land Improvements 25.6 22.9 9.5 9.3 35.1 32.2 Machinery, Vehicles, and Equipment 10.5 11.1 5.9 6.0 16.4 17.1 Infrastructure 36.9 34.7 26.6 26.7 63.5 61.4 Total 107.9$ 103.1$ 50.8$ 50.3$ 158.7$ 153.4$ Accumulated Depreciation (42.4)$ (41.3)$ (21.0)$ (20.4)$ (63.4)$ (61.7)$ Total Capital Assets 65.5$ 61.8$ 29.8$ 29.9$ 95.3$ 91.7$ Table 4 Capital Assets As of December 31, 2018 and 2017 (in millions) Governmental Activities Business-Type Activities Total Primary Government At year-end, the Village’s net investment in capital assets (net of accumulated depreciation and related long-term debt) for both its governmental and business-type activities was $95.3 million, an increase of $3.6 million from 2017 (see Note II.C. in the Notes to the Financial Statements for further information regarding capital assets). Major capital asset events during 2018 were: • For Governmental Activities, capital spending included: Police Department Sally Port and Detention Zone Renovation/Addition, York Road lane widening, salt storage facility engineering, and various vehicle and equipment replacements. • For Business-Type Activities, capital spending included: Golf Club patio renovation, Bath and Tennis Club electrical and generator project, and various golf utility cart replacements. 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 $130,392,337 based on January 1, 2018 EAV of $1,511,795,209. As of December 31, 2018, the Village had no debt outstanding applicable to the legal limit (see Note II.E. in the Notes to the Financial Statements for details of each issue). The table below summarizes the Village’s outstanding long-term debt: VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 15 Governmental Business-Type Total Primary Activities Activities Government TIF Note Payable 3,103,263$ -$ 3,103,263$ Capital Lease Payable 61,509 - 61,509 Total 3,164,772$ -$ 3,164,772$ Table 5 Long-Term Debt As of December 31, 2018 The Village’s note payable is to the Tax Increment Financing (TIF) District developers for certain improvements in the TIF area located at the Promenade (22nd Street and Meyers Road). The TIF Note is not a general obligation to the Village and it expires in 2024. Repayment of the note is limited to the availability of pledged taxes. During 2018, the Village entered into an agreement to lease certain administration, public works, and public safety vehicles. One vehicle was received and placed into service during 2018. The term of this lease will be five years with equal annual payments. 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. During the current fiscal year, unassigned fund balance in the General Fund increased from $21.0 million to $21.7 million primarily due to revenues coming in slightly higher than budgeted while controlling expenditure increases. Total 2018 General Fund revenues of $25.5 million was a $1.8 million increase from 2017. The Village’s intent is to hold this fund balance in reserves. The 2019 Budget continues to be a conservative financial plan while providing excellent services to its residents and business community. The 2019 budgeted revenues are $54.4 million, an increase of $2.1 million, or 4.0%, from the 2018 Budget (excludes Pension Trust and Foreign Fire Tax Funds). This is primarily due to a full year of increased ambulance transit rates, a strong building permit forecast, and an equity transfer from the Equipment Replacement Fund. The total spending in the 2019 Budget is $68.8 million, an increase of $12.5 million, or 22.3%, from the 2018 Budget (excludes Pension Trust and Foreign Fire Tax Funds. This is mainly due to increases in capital outlay from the salt storage facility construction, Jorie Blvd. median beautification project, and the Harger Road bike path construction. The projected ending cash balance for 2019 in the General Corporate Fund of $17.5 million is equal to 9.3 months of operating expenditures, which is above the six month reserve requirement. VILLAGE OF OAK BROOK, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) (See independent auditors’ report) 16 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 Jason Paprocki, Finance Director, Village of Oak Brook, 1200 Oak Brook Road, Oak Brook, IL 60523. VILLAGE OF OAK BROOK STATEMENT OF NET POSITION As of December 31, 2018 Governmental Activities Business-Type Activities Totals ASSETS Cash and investments $35,740,073 $7,055,932 $42,796,005 Receivables (net) Property taxes 373,000 -373,000 Sales taxes 5,704,291 -5,704,291 Utility taxes 1,276,317 -1,276,317 Accounts 423,379 -423,379 Billed and unbilled water sales -995,874 995,874 Allotments 17,122 -17,122 Accrued interest 109,380 11,532 120,912 Other 749,671 432,580 1,182,251 Internal balances (660,208)660,208 - Inventories 54,006 102,547 156,553 Prepaid items 369,819 24,414 394,233 Capital Assets Capital assets not being depreciated 34,867,892 8,793,707 43,661,599 Capital assets, net of accumulated depreciation 30,594,720 21,021,618 51,616,338 Total Assets 109,619,462 39,098,412 148,717,874 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - IMRF 522,917 191,302 714,219 Deferred outflows related to pensions - police 4,824,805 -4,824,805 Deferred outflows related to pensions - firefighters'2,282,959 -2,282,959 Deferred outflows related to OPEB 63,711 5,909 69,620 Total Deferred Outflows of Resources 7,694,392 197,211 7,891,603 LIABILITIES Accounts payable 2,635,017 485,738 3,120,755 Accrued payroll 707,581 52,864 760,445 Accrued interest 103,442 -103,442 Claims payable 143,349 -143,349 Deposits 837,147 116,262 953,409 Unearned revenue 147,043 22,057 169,100 Noncurrent Liabilities Due within one year 1,289,775 86,219 1,375,994 Due in more than one year 58,782,227 651,459 59,433,686 Total Liabilities 64,645,581 1,414,599 66,060,180 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions - IMRF 2,032,762 743,659 2,776,421 Deferred inflows related to pensions - police 706,540 -706,540 Deferred inflows related to pensions - firefighters'891,679 -891,679 Deferred inflows related to OPEB 252,946 23,461 276,407 Deferred property taxes 373,000 -373,000 Total Deferred Inflows of Resources 4,256,927 767,120 5,024,047 NET POSITION Net investment in capital assets 65,401,103 29,815,325 95,216,428 Restricted for Infrastructure 9,449,977 -9,449,977 Highways and streets 797,923 -797,923 Fire department 260,168 -260,168 Culture and recreation 4,590,891 -4,590,891 Economic development 257,485 -257,485 Unrestricted (32,346,201)7,298,579 (25,047,622) TOTAL NET POSITION $48,411,346 $37,113,904 $85,525,250 See accompanying notes to financial statements. Page 17 VILLAGE OF OAK BROOK STATEMENT OF ACTIVITIES For the Year Ended December 31, 2018 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Governmental Activities General government $5,562,375 $4,542,585 $- Public safety 18,936,493 1,444,107 25,817 Public works 5,025,121 16,693 201,771 Culture, education and recreation 1,690,190 11,949 - Interest and fiscal charges 255,253 -- Total Governmental Activities 31,469,432 6,015,334 227,588 Business-type Activities Waterworks System 8,819,043 9,818,258 - Sports Core 3,536,941 3,251,870 - Golf Surcharge -106,267 - Total Business-type Activities 12,355,984 13,176,395 - Total $43,825,416 $19,191,729 $227,588 General Revenues Taxes Property Sales, local use Utility taxes Hotel/motel Other Intergovernmental - unrestricted State sales tax State income tax Replacement Gain on disposal of capital assets Investment income Miscellaneous Total General Revenues Change in net position NET POSITION - Beginning of Year (as restated) NET POSITION - END OF YEAR See accompanying notes to financial statements. Page 18 Net (Expenses) Revenues and Changes in Net Position Governmental Activities Business-type Activities Totals $(1,019,790)$-$(1,019,790) (17,466,569)-(17,466,569) (4,806,657)-(4,806,657) (1,678,241)-(1,678,241) (255,253)-(255,253) (25,226,510)-(25,226,510) -999,215 999,215 -(285,071)(285,071) -106,267 106,267 -820,411 820,411 (25,226,510)820,411 (24,406,099) 373,267 -373,267 6,022,580 -6,022,580 6,137,283 -6,137,283 1,340,495 -1,340,495 93,196 -93,196 12,586,320 -12,586,320 754,924 -754,924 263,964 -263,964 89,225 -89,225 638,925 108,008 746,933 211,233 -211,233 28,511,412 108,008 28,619,420 3,284,902 928,419 4,213,321 45,126,444 36,185,485 81,311,929 $48,411,346 $37,113,904 $85,525,250 See accompanying notes to financial statements. Page 19 VILLAGE OF OAK BROOK BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2018 General Hotel/Motel Tax Infrastructure Promenade TIF AS SETS Cash and investments $17,932,009 $4,809,830 $9,278,944 $257,485 Receivables Property taxes ---373,000 Sales taxes 3,911,481 -1,792,810 - Utility taxes 1,276,317 --- Accounts 423,379 --- Allotments ---- Accrued interest 71,780 13,602 17,618 - Other 430,561 97,685 143,052 - Inventories 2,170 --- Prepaid items 53,840 --- TOTAL ASSETS $24,101,537 $4,921,117 $11,232,424 $630,485 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $444,026 $330,226 $1,600,725 $- Accrued payroll 654,537 -46,431 - Deposits 837,147 --- Unearned revenues 113,733 --- Total Liabilities 2,049,443 330,226 1,647,156 - Deferred Inflows of Resources Deferred property taxes ---373,000 Unavailable other receivables 298,767 -135,291 - Total Deferred Inflows of Resources 298,767 -135,291 373,000 Fund Balances Nonspendable for inventory 2,170 --- Nonspendable for prepaid items 53,840 --- Restricted for infrastructure --9,449,977 - Restricted for highways and streets ---- Restricted for fire department ---- Restricted for culture and recreation -4,590,891 -- Restricted for economic development ---257,485 General fund undesignated 21,697,317 --- Total Fund Balances 21,753,327 4,590,891 9,449,977 257,485 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $24,101,537 $4,921,117 $11,232,424 $630,485 See accompanying notes to financial statements. Page 20 Nonmajor Governmental Funds Totals $1,039,237 $33,317,505 -373,000 -5,704,291 -1,276,317 -423,379 17,122 17,122 957 103,957 -671,298 -2,170 775 54,615 $1,058,091 $41,943,654 $-$2,374,977 -700,968 -837,147 -113,733 -4,026,825 -373,000 -434,058 -807,058 -2,170 775 54,615 -9,449,977 797,923 797,923 259,393 259,393 -4,590,891 -257,485 -21,697,317 1,058,091 37,109,771 $1,058,091 $41,943,654 See accompanying notes to financial statements. Page 21 VILLAGE OF OAK BROOK RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION As of December 31, 2018 Total Fund Balances - Governmental Funds $37,109,771 Amounts reported for governmental activities in the statement of net position 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.61,568,253 Unavailable other receivables recognized in the statement of net position do not provide current financial resources and are included as deferred inflows of resources in the governmental funds balance sheet.434,058 Interest payable is not due and payable in the current period and, therefore, is not reported in the governmental funds.(103,442) Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.7,612,753 Deferred inflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds.(3,561,289) Deferred outflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds.63,164 Deferred inflows of resources related to OPEB do not relate to current financial resources and are not reported in the governmental funds.(250,773) Internal service funds are reported in the statement of net position as governmental activities.5,480,004 Some liabilities (excluding those reported in the internal service funds amount above), including long-term debt, are not due and payable in the current period and therefore, are not reported in the funds. Notes payable (3,103,263) Compensated absences payable (1,054,285) Net pension liability (50,668,319) Total other postemployment benefit liability (5,115,286) NET POSITION OF GOVERNMENTAL ACTIVITIES $48,411,346 See accompanying notes to financial statements. Page 22 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the Year Ended December 31, 2018 General Hotel/Motel Tax Infrastructure Promenade TIF REVENUES Intergovernmental $13,900,471 $-$-$99,477 Non-home rule sales tax --5,691,536 - Utility taxes 6,137,283 --- Hotel and motel taxes -1,340,495 -- Licenses and permits 3,185,402 --- Charges for services 1,155,142 --- Property taxes ---373,267 Fines, forfeitures and penalties 191,825 --- Investment income 329,065 76,703 173,890 1,975 Miscellaneous revenues 599,072 5,200 2,729 - Total Revenues 25,498,260 1,422,398 5,868,155 474,719 EXPENDITURES Current General government 6,548,865 99,550 166,230 3,578 Public safety 16,610,925 --- Public works 761,682 -6,003,648 - Culture and recreation 878,135 691,261 -- Debt Service Principal ---227,000 Interest and fiscal charges ---262,820 Total Expenditures 24,799,607 790,811 6,169,878 493,398 Excess (deficiency) of revenues over expenditures 698,653 631,587 (301,723)(18,679) OTHER FINANCING USES Transfers in --7,790 - Transfers out ---- Total Other Financing Uses --7,790 - Net Change in Fund Balances 698,653 631,587 (293,933)(18,679) FUND BALANCES - Beginning of Year 21,054,674 3,959,304 9,743,910 276,164 FUND BALANCES - END OF YEAR $21,753,327 $4,590,891 $9,449,977 $257,485 See accompanying notes to financial statements. Page 23 Nonmajor Governmental Funds Totals $256,479 $14,256,427 -5,691,536 -6,137,283 -1,340,495 -3,185,402 -1,155,142 -373,267 496 192,321 14,459 596,092 2,095 609,096 273,529 33,537,061 -6,818,223 41,531 16,652,456 -6,765,330 -1,569,396 -227,000 -262,820 41,531 32,295,225 231,998 1,241,836 -7,790 (7,790)(7,790) (7,790)- 224,208 1,241,836 833,883 35,867,935 $1,058,091 $37,109,771 See accompanying notes to financial statements. Page 24 VILLAGE OF OAK BROOK RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2018 Net change in fund balances - total governmental funds $1,241,836 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the statement of activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 5,533,048 Depreciation is reported in the government-wide financial statements (1,571,908) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements.53,228 Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal repaid 227,000 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences 80,164 Interest payable 7,566 Total postemployment benefits liability (44,344) Net pension liability (4,777,358) Deferred outflows of resources related to pensions 842,733 Deferred inflows of resources related to pensions 1,709,472 Deferred outflows of resources related to OPEB (9,497) Deferred inflows of resources related to OPEB 37,707 The change in net position of certain activities of internal service funds is included in governmental activities.(44,745) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $3,284,902 See accompanying notes to financial statements. Page 25 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2018 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals ASSETS Current Assets Cash and investments $6,426,743 $192,897 $436,292 $7,055,932 Receivables Billed and unbilled water sales 995,874 --995,874 Accrued interest 9,155 -2,377 11,532 Other 313,707 118,873 -432,580 Inventories -102,547 -102,547 Prepaid items -24,414 -24,414 Total Current Assets 7,745,479 438,731 438,669 8,622,879 Noncurrent Assets Capital assets not being depreciated 254,881 8,538,826 -8,793,707 Capital assets, net of accumulated depreciation 17,380,840 3,640,778 -21,021,618 Total Noncurrent Assets 17,635,721 12,179,604 -29,815,325 Total Assets 25,381,200 12,618,335 438,669 38,438,204 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - IMRF 73,928 117,374 -191,302 Deferred outflows related to OPEB 2,699 3,210 -5,909 Total Deferred Outflows of Resources 76,627 120,584 -197,211 See accompanying notes to financial statements. Page 26 Governmental Activities - Internal Service Funds $2,422,568 - 5,423 78,373 51,836 315,204 2,873,404 - 3,894,359 3,894,359 6,767,763 17,928 547 18,475 See accompanying notes to financial statements. Page 27 VILLAGE OF OAK BROOK STATEMENT OF NET POSITION PROPRIETARY FUNDS As of December 31, 2018 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals LIABILITIES Current Liabilities Accounts payable 374,603 111,135 -485,738 Accrued payroll 24,997 27,867 -52,864 Compensated absences payable 47,724 38,495 -86,219 Deposits 590 115,672 -116,262 Unearned revenues -22,057 -22,057 Claims payable ---- Total Current Liabilities 447,914 315,226 -763,140 Noncurrent Liabilities Net pension liability - IMRF 66,813 106,077 -172,890 Total other post employment benefits liability 218,603 259,966 -478,569 Lease obligations ---- Total Noncurrent Liabilities 285,416 366,043 -651,459 Total Liabilities 733,330 681,269 -1,414,599 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions - IMRF 287,383 456,276 -743,659 Deferred inflows related to OPEB 10,717 12,744 -23,461 Total Deferred Inflows of Resources 298,100 469,020 -767,120 NET POSITION Investment in capital assets 17,635,721 12,179,604 -29,815,325 Unrestricted 6,790,676 (590,974)438,669 6,638,371 TOTAL NET POSITION $24,426,397 $11,588,630 $438,669 36,453,696 Adjustments to reflect the consolidation of internal service funds activities related to enterprise funds.660,208 Net Position Business-type Activities $37,113,904 Net internal service funds reported in the statement of net position as governmental activities See accompanying notes to financial statements. Page 28 Governmental Activities - Internal Service Funds 260,040 6,613 8,819 - 33,310 143,349 452,131 16,202 44,319 61,509 122,030 574,161 69,692 2,173 71,865 3,894,359 2,245,853 $6,140,212 (660,208) $5,480,004 See accompanying notes to financial statements. Page 29 VILLAGE OF OAK BROOK STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2018 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals OPERATING REVENUES Charges for services $9,818,258 $3,251,870 $106,267 $13,176,395 Total Operating Revenues 9,818,258 3,251,870 106,267 13,176,395 OPERATING EXPENSES Operation of facilities 8,275,397 3,204,294 -11,479,691 Claims and insurance ---- Miscellaneous ---- Depreciation and amortization 517,190 282,125 -799,315 Total Operating Expenses 8,792,587 3,486,419 -12,279,006 Operating Income 1,025,671 (234,549)106,267 897,389 NONOPERATING REVENUES (EXPENSES) Investment income 97,388 -10,620 108,008 Gain (loss) on disposal of capital assets -(59,701)-(59,701) Total Nonoperating Revenues (Expenses)97,388 (59,701)10,620 48,307 Income Before Transfers 1,123,059 (294,250)116,887 945,696 TRANSFERS Transfers in -234,088 -234,088 Transfers out --(234,088)(234,088) Total Transfers -234,088 (234,088)- Change in Net Position 1,123,059 (60,162)(117,201)945,696 NET POSITION - Beginning of Year (as restated)23,303,338 11,648,792 555,870 NET POSITION - END OF YEAR $24,426,397 $11,588,630 $438,669 Adjustment to reflect the consolidation of internal service funds activities related to enterprise funds (17,277) Change in Net Position of Business-type Activities $928,419 See accompanying notes to financial statements. Page 30 Governmental Activities - Internal Service Funds $4,150,674 4,150,674 717,717 2,974,394 18,972 633,674 4,344,757 (194,083) 42,836 89,225 132,061 (62,022) - - - (62,022) 6,202,234 $6,140,212 See accompanying notes to financial statements. Page 31 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2018 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $9,552,506 $3,294,220 $106,267 $12,952,993 Receipts from internal service transactions ---- Paid to suppliers for goods and services (8,275,296)(1,996,183)-(10,271,479) Paid to employees for services (512,443)(1,178,729)-(1,691,172) Net Cash Flows From Operating Activities 764,767 119,308 106,267 990,342 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured 1,307,022 -98,200 1,405,222 Investment income 106,968 -15,097 122,065 Purchase of investments (2,152,370)--(2,152,370) Net Cash Flows From Investing Activities (738,380)-113,297 (625,083) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Net transfers in (out)-234,088 (234,088)- Net Cash Flows From Noncapital Financing Activities -234,088 (234,088)- CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets (114,314)(649,772)-(764,086) Proceeds from sale of capital assets -14,300 -14,300 Net Cash Flows From Capital and Related Financing Activities (114,314)(635,472)-(749,786) Net Change in Cash and Cash Equivalents (87,927)(282,076)(14,524)(384,527) CASH AND CASH EQUIVALENTS - Beginning of Year 4,834,129 474,973 14,524 5,323,626 CASH AND CASH EQUIVALENTS - END OF YEAR $4,746,202 $192,897 $-$4,939,099 See accompanying notes to financial statements. Page 32 Governmental Activities - Internal Service Funds $1,084,647 3,068,194 (3,436,132) (144,248) 572,461 59,348 45,657 (168,781) (63,776) - - (312,088) (89,225) (401,313) 107,372 1,319,629 $1,427,001 See accompanying notes to financial statements. Page 33 VILLAGE OF OAK BROOK STATEMENT OF CASH FLOW S PROPRIETARY FUNDS For the Year Ended December 31, 2018 Business-type Activities - Enterprise Funds Waterworks System Sports Core Nonmajor Enterprise Fund - Golf Surcharge Totals RECONCILIATION OF OPERATING INCOME TO NET CASH FLOWS FROM OPERATING AC TIVITIES Operating income (loss)$1,025,671 $(234,549)$106,267 $897,389 Adjustments to Reconcile Operating Income to Net Cash Flows From Operating Activities Depreciation 517,190 282,125 -799,315 Changes in assets and liabilities Accounts receivable (248,816)(4,812)-(253,628) Inventory -4,325 -4,325 Prepaids -(23,074)-(23,074) Deferred outflows - pensions 240,653 293,567 -534,220 Deferred outflows - OPEB 450 (96)-354 Billed and unbilled water sales (16,874)--(16,874) Accounts payable (453,405)(14,264)-(467,669) Customer deposits (62)42,408 -42,346 Accrued salaries (4,325)3,796 -(529) Compensated absences payable (2,610)1,452 -(1,158) Claims payable ---- Other post employment benefits payable (1,181)42,648 -41,467 Net pension liability (548,331)(697,497)-(1,245,828) Deferred inflows - pensions 258,193 418,144 -676,337 Deferred inflows - OPEB (1,786)381 -(1,405) Unearned revenues -4,754 -4,754 NET CASH FLOWS FROM OPERATING ACTIVITIES $764,767 $119,308 $106,267 $990,342 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION - PROPRIETARY FUNDS Cash and cash equivalents $4,746,202 $192,897 $-$4,939,099 Investments 1,680,541 -436,292 2,116,833 CASH AND INVESTMENTS $6,426,743 $192,897 $436,292 $7,055,932 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None See accompanying notes to financial statements. Page 34 Governmental Activities - Internal Service Funds $(194,083) 633,674 1,734 (8,978) 20,045 26,992 95 - 159,188 - (1,328) (814) (57,548) (462) (71,636) 65,524 (375) 433 $572,461 $1,427,001 995,567 $2,422,568 See accompanying notes to financial statements. Page 35 VILLAGE OF OAK BROOK STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS As of December 31, 2018 Pension Trusts ASSETS Cash $726,834 Investments Certificates of deposit 864,378 Money markets 1,532,656 U.S. treasuries 1,122,113 U.S. agencies 11,273,465 State and local obligations 2,548,593 Corporate bonds 6,511,314 Mutual funds 36,815,328 Accrued interest 194,716 Prepaid items 4,671 Total Assets 61,594,068 LIABILITIES Accounts payable 28,255 Total Liabilities 28,255 NET POSITION Restricted for pension benefits 61,565,813 TOTAL NET POSITION $61,565,813 See accompanying notes to financial statements. Page 36 VILLAGE OF OAK BROOK STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS For the Year Ended December 31, 2018 Pension Trusts AD DITIONS Contributions Employer $4,011,403 Employee 691,469 Other 18,953 Total Contributions 4,721,825 Investment income Net appreciation in fair value (7,090,240) Interest 3,579,458 Total Investment Income (3,510,782) Less Investment expense 130,355 Net Investment Income (3,641,137) Total Additions 1,080,688 DEDUCTIONS Benefits and refunds 5,287,941 Administrative 100,239 Total Deductions 5,388,180 Net Decrease in Net Position (4,307,492) NET POSITION - Beginning of Year 65,873,305 NET POSITION - END OF YEAR $61,565,813 See accompanying notes to financial statements. Page 37 VILLAGE OF OAK BROOK INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE Page I Summary of Significant Accounting Policies 39 A.Reporting Entity 39 B.Government-W ide and Fund Financial Statements 40 C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation 43 D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 44 1.Deposits and Investments 44 2.Receivables 47 3.Inventories and Prepaid Items 48 4.Capital Assets 48 5.Deferred Outflows of Resources 49 6.Compensated Absences 49 7.Long-Term Obligations 50 8.Deferred Inflows of Resources 50 9. Equity Classifications 50 II Detailed Notes on All Funds 53 A.Deposits and Investments 53 B.Receivables 59 C.Capital Assets 60 D.Interfund Transfers 62 E.Long-Term Obligations 63 F.Lease Disclosures 64 G.Restatement of Net Position 65 III Other Information 66 A.Employees' Retirement System 66 B.Risk Management 79 C.Commitments and Contingencies 81 D.Other Postemployment Benefits 81 E.Tax Abatement 84 F.Effect of New Accounting Standards on Current-Period Financial Statements 85 See accompanying notes to financial statements. Page 38 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Oak Brook, Illinois (the Village) was incorporated in 1958. The Village is a non home-rule municipality, under the 1970 Illinois Constitution, located in DuPage County, Illinois. The Village operates under a President-Trustee form of government and provides the following services as authorized by its charter: public safety (police and 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. The accounting policies of the Village conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). A.REPORTING ENTITY This report includes all of the funds of the Village. The reporting entity for the Village consists of the primary government and its component units. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity's financial statements to be misleading. The Village has not identified any organizations that meet this criteria. The Police Pension Employees Retirement System (PPERS) is established for the Village's police employees. PPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s Board, one elected by retired pension members and two elected by active members, constitutes the pension board. The Village and the PPERS participants are obligated to fund all PPERS costs based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the actuarial assumptions used in the determination of contribution levels. Although it possesses many characteristics of a legally separate government, 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. PPERS is reported as a pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements. No separate annual financial report is issued for the PPERS. The Firefighters’ Pension Employees Retirement System (FPERS) is established for the Village's firefighters. FPERS functions for the benefit of these employees and is governed by a five-member pension board. Two members appointed by the Village’s Board, one elected by retired pension members and two elected by active members constitute the pension board. The Village and the 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, FPERS is reported as if it were part of the primary government because its sole purpose is to finance and administer the pensions of the Village’s firefighters because of the fiduciary nature of such activities. FPERS is reported as a pension trust fund and the data for the pension is included in the government's fiduciary fund financial statements. No separate annual financial report is issued for the FPERS. Page 39 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS In June 2015, the GASB issued statement No. 75 - Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple- Employer Plans, for OPEB. This standard was implemented January 1, 2018. Government-Wide Financial Statements The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds.The statements distinguish between governmental and business-type activities. The effect of material interfund activity has been eliminated from these statements. Interfund services provided and used are not eliminated on these statements. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Village does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the Village are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues, and expenditures/expenses. Page 40 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the Village believes is particularly important to financial statement users may be reported as a major fund. 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. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Village reports the following major governmental funds: General Fund - accounts for the Village's primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Hotel/Motel Tax Fund - used to account for local hotel/motel tax receipts restricted for promoting tourism and conventions in the Village. Infrastructure Fund - used to account for revenues restricted for and expenditures relative to the construction and maintenance of roadway, drainage and bike trail improvements. Promenade TIF Fund - used to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. The Village reports the following major enterprise funds: Waterworks System Fund - accounts for the revenues and expenses relative to the operation of the water utility. Sports Core Fund - accounts for the revenues and expenses relative to the operation of the Oak Brook Sports Core. Page 41 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) The Village reports the following nonmajor governmental and enterprise funds: Special Revenue Funds - used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Motor Fuel Tax Foreign Fire Insurance Enterprise Fund - used to account for and report any activity for which a fee is charged to external uses for goods or services, and must be used for activities which meet certain debt or cost recovery criteria. Golf Surcharge In addition, the Village reports the following fund types: Internal Service Funds - used to 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. Self-Insurance Garage Capital Replacement Pension Trust Funds - used to account for and report resources that are required to be held in trust for the members and beneficiaries of the Village's defined benefit pension plans. Police Pension Firefighters' Pension Page 42 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for sales taxes and telecommunication taxes which use a 90-day period and income taxes a 120-day period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled the resources and the amounts are available. Amounts owed to the Village which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services, special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. Page 43 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements (cont.) The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Waterworks and Sports Core funds are charges to customers for sales and services. Special assessments are recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY 1.Deposits and Investments For purposes of the statement of cash flows, the Village's proprietary funds consider all highly liquid investments with an initial maturity of three months or less when acquired to be cash equivalents. Illinois Statutes authorize the Village to make 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 the Illinois Funds Investment Pool. Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions, and the Illinois insurance company general and separate accounts, mutual funds meeting certain requirements, equity securities, and corporate bonds meeting certain requirements. Pension funds with net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The police pension fund’s investment policy allows investments in all of the above listed accounts. The firefighters' pension fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. Page 44 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) The Police Pension Fund's investment policy allows investments in all of the above listed accounts. The police pension fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Money market mutual funds 5%0.50% Fixed income 45%2.50% Mutual funds 55%5.50% Illinois Compiled Statues (ILCS) limit the Police Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2018 is summarized in the table above. The Firefighters' Pension Fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. The Firefighters’ Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes the following target allocation across asset classes: Asset Class Target Long-Term Expected Real Rate of Return Money market mutual funds 5%0.50% Fixed income 35%2.50% Mutual funds 60%5.50% Illinois Compiled Statues (ILCS) limit the Firefighters' Pension Fund's investments in equities, mutual funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio. Page 45 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected future real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation as of December 31, 2018 is summarized in the table above. The Village has adopted an investment policy. That policy follows the state statute for allowable investments. Interest Rate Risk In accordance with its investment policy, the Village limits its exposure to interest rate risk by structuring the portfolio to remain sufficiently liquid to enable the Village to meet all operating requirements which may be reasonably anticipated in any Village fund. Maturities of investments in all funds covered by this policy shall not exceed five years, unless a temporary extension of maturities is approved by the Board of Trustees. The Police and Firefighters' Pensions' investment policies limits their exposure to interest rate risk by structuring the portfolio to provide liquidity for operating expenses and benefits and maximizing yields for funds not needed within a one-year period. The investment policies do not limit the maximum maturity length of investments in the Police and Firefighters' Pensions' Funds. Credit Risk The Village limits its exposure to credit risk by investing in securities issued by the United States Government, securities issued by agencies of the United States Government, which are implicitly guaranteed by the United States Government, or corporate bonds rated within the three highest classifications by at least two standard rating services. The Police and Firefighters' Pensions' both strive to limit its exposure to credit risk, by primarily investing in securities issued by the United States Government that carry an implicit guarantee, high quality state or local obligations or corporate bonds rate within the three highest classifications by at least two standard rating services. Concentration of Credit Risk In order to limit the exposure to concentration of credit risk, the Village's investment policy limits investments in any one financial institution to 20%, exclusive of securities guaranteed by the full faith and credit of the United States Government or obligations of agencies of the United States Government. Page 46 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 1.Deposits and Investments (cont.) Custodial Credit Risk - Deposits The Village's, Police Pension's and Firefighters' Pension's investment policies require pledging of collateral with a fair value of 110% of all bank balances in excess of federal depository insurance with the collateral held by an agent of the Village in the Village's name. Custodial Credit Risk - Investments The Village investment policy limits its exposure to custodial credit risk by utilizing an independent, third party institution, to act as a custodian for its securities and collateral. The Police and Firefighters' Pensions limit their exposure to custodial credit by utilizing a Trust Department of to act as a custodian for its fixed income and equity securities. Investments are stated at fair value, which is the amount at which an investment could be exchanged in a current transaction between willing parties. Fair values are based on quoted market prices. No investments are reported at amortized cost. Adjustments necessary to record investments at fair value are recorded in the operating statement as increases or decreases in investment income. Investment income on commingled investments of municipal accounting funds is allocated based on average balances. The difference between the bank statement balance and carrying value is due to outstanding checks and/or deposits in transit. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price, the price for which the investments could be sold. See Note II. A. for further information. 2.Receivables Property taxes for levy year 2018 attaches as an enforceable lien on January 1, 2018, on property values assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax Levy Ordinance). Tax bills for levy year 2018 are prepared by DuPage County and issued on or about May 1, and August 1, and are payable in two installments, on or about June 1, and September 1. Page 47 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 2.Receivables (cont.) 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, as well as incremental property taxes from the Butterfield/Meyers Road Redevelopment Project Area (TIF). During the course of operations, transactions occur between individual funds that may result in amounts owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as internal balances. 3.Inventories and Prepaid Items Inventories are recorded based on the average cost method, 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 nonspendable fund balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items/expenses is recorded as expenditures/expenses when consumed rather than when purchased. 4.Capital Assets Government-Wide Statements Capital assets, which include property, plant and 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 1 year. All capital assets are valued at historical cost, or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their estimated acquisition value at the date of donation. The costs of normal maintenance and repairs, including street overlays that do not add to the value of the asset or materially extend asset lives are not capitalized. Page 48 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 4.Capital Assets (cont.) Government-Wide Statements (cont.) Additions to and replacements of capital assets of business-type activities are recorded at original cost, which includes material, labor, overhead, and an allowance for the cost of funds used during construction when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense incurred during construction netted against any interest revenue from temporary investment of borrowed fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is charged to accumulated depreciation. Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation and amortization reflected in the statement of net position. Depreciation and amortization is provided over the assets' estimated useful lives using the straight-line method. The range of estimated useful lives by type of asset is as follows: Land improvements 20 Years Buildings and building improvements 5-50 Years Equipment 5-20 Years Vehicles 2-20 Years Infrastructure 20-75 Years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. 5. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that future time. 6.Compensated Absences Under terms of employment, employees are granted vacation, sick and compensatory leave in varying amounts. Only benefits considered to be vested are disclosed in these statements. Page 49 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 6. Compensated Absences (cont.) All vested vacation, sick leave and compensatory leave pay is accrued when incurred in the government- wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, and are payable with expendable resources. Payments for vacation, sick leave and compensatory leave will be made at rates in effect when the benefits are used. Accumulated vacation, sick leave and compensatory leave at December 31, 2018, are determined on the basis of current salary rates and include salary related payments. 7.Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term obligations consist primarily of notes payable, net pension liabilities, net other postemployment benefit obligations payable and accrued compensated absences. Long-term obligations for governmental funds are not reported as liabilities in the fund financial statements. The face value of debts (plus any premiums) are reported as other financing sources and payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the same as it is in the government-wide statements. 8.Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a future period and therefore will not be recognized as an inflow of resources (revenue) until that future time. 9. Equity Classifications Government-Wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances (excluding unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position - Consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation. Page 50 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications (cont.) Government-Wide Statements (cont.) c. Unrestricted net position - All other net positions that do not meet the definitions of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as they are needed. Fund Statements Governmental fund balances are displayed as follows: a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are not in spendable form or because legal or contractual requirements require them to be maintained intact. b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Committed - Includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority. Fund balance amounts are committed through a formal action (ordinance) of the Village Board. This formal action must occur prior to the end of the reporting period, but the amount of the commitment, which will be subject to the constraints, may be determined in the subsequent period. Any changes to the constraints imposed require the same formal action of the Village Board that originally created the commitment. d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific purposes that do not meet the criteria to be classified as restricted or committed. The Village Board has, by resolution, adopted a financial policy authorizing the Finance Director to assign amounts for a specific purpose. Assignments may take place after the end of the reporting period. e. Unassigned - Includes residual positive fund balance within the general fund which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those purposes. Proprietary fund equity is classified the same as in the government-wide statements. Page 51 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY (cont.) 9. Equity Classifications (cont.) Fund Statements (cont.) The Village considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The Village has established fund balance policies for their governmental funds. It is the policy of the Village that every effort be made to maintain the greater of: (a) an uncommitted cash balance equal to six months of budgeted operating expenditures for the forthcoming fiscal year, exclusive of budgeted capital projects; or (b) an uncommitted cash balance equal to not less than six months of projected expenditures, exclusive of capital projects, based on the average of the first three years of the most recent Five Year Financial Plan adopted by the Village Board. Page 52 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS A.DEPOSITS AND INVESTMENTS The Village's deposits and investments at year end were comprised of the following: Carrying Value Statement Balances Associated Risks Petty cash $4,100 $-N/A Deposits 2,067,432 3,251,770 Custodial credit risk Money markets 1,532,656 1,532,656 Credit risk Illinois funds 19,255,674 19,252,722 Credit risk Certificates of deposit (Non-negotiable)7,526,653 7,526,653 Custodial credit risk Corporate bonds 14,395,184 14,395,184 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk U.S. treasury obligations 1,122,113 1,122,113 Custodial credit risk, interest rate risk U.S. agency obligations - explicit 640 640 Custodial credit risk, interest rate risk U.S. agency obligations - implicit 11,939,088 11,939,088 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Mutual funds - other than bond funds 36,815,328 36,815,328 N/A State and local obligations 9,531,818 9,531,818 Credit risk, custodial credit risk, concentration of credit risk, interest rate risk Total Deposits and Investments $104,190,686 $105,367,972 Page 53 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Reconciliation to financial statements Per statement of net position Cash and investments $42,796,005 Per statement of net position - fiduciary funds Cash 726,834 Certificates of deposit 864,378 Money markets 1,532,656 U.S. treasuries 1,122,113 U.S. agencies 11,273,465 Corporate bonds 6,511,314 Mutual funds 36,815,328 State and local obligations 2,548,593 Total Deposits and Investments $104,190,686 Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the government is located, insured amounts are further limited to a total of $250,000 for the combined amount of all deposit accounts. The Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. As of December 31, 2018, investments were measured using the market valuation method and valuation inputs as follows: Village Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$666,263 $-$666,263 State and local obligations -6,983,225 -6,983,225 Corporate bonds -7,883,870 -7,883,870 Illinois funds -19,255,674 -19,255,674 Total $-$34,789,032 $-$34,789,032 Page 54 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Police Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$4,878,371 $-$4,878,371 U.S. treasuries -224,911 -224,911 State and local obligations -1,066,231 -1,066,231 Mutual funds 21,855,588 --21,855,588 Corporate bonds -4,791,935 -4,791,935 Total $21,855,588 $10,961,448 $-$32,817,036 Firefighters' Pension Investment Type Level 1 Level 2 Level 3 Total U.S. agencies $-$6,395,094 $-$6,395,094 U.S. treasuries -897,202 -897,202 State and local obligations -1,482,362 -1,482,362 Mutual funds 14,959,740 --14,959,740 Corporate bonds -1,719,379 -1,719,379 Total $14,959,740 $10,494,037 $-$25,453,777 Custodial Credit Risk Deposits Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may not be returned to the Village. The Village does not have any deposits exposed to custodial credit risk. Investments For an investment, custodial credit 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. The Village does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Page 55 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Credit Risk (cont.) As of December 31, 2018, investments were rated as follows: Village Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $666,263 $-$-$-$-$666,263 State and local obligations 6,983,225 -3,851,332 1,976,770 246,083 909,040 Corporate bonds 7,883,870 --6,389,450 1,494,420 - Illinois funds 19,245,958 19,245,958 ---- Totals $34,779,316 $19,245,958 $3,851,332 $8,366,220 $1,740,503 $1,575,303 Police Pension Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $4,877,943 $-$4,877,943 $-$-$- State and local obligations 1,066,231 -1,066,231 --- Corporate bonds 4,791,935 -40,430 1,921,239 2,830,266 - Totals $10,736,109 $-$5,984,604 $1,921,239 $2,830,266 $- Firefighters' Pension Standard & Poor's/Moody's Investment Type Fair Value AAA AA A BBB Not Rated U.S. agencies $6,394,883 $-$6,394,883 $-$-$- State and local obligations 1,482,362 348,362 1,134,000 --- Corporate bonds 1,719,379 99,114 682,529 790,383 147,353 - Totals $9,596,624 $447,476 $8,211,412 $790,383 $147,353 $- Page 56 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. At December 31, 2018, the investment portfolio was concentrated as follows: Village Issuer Investment Type Percentage of Net Position Wells Fargo Corporate bonds 6.00% JP Morgan Corporate bonds 6.00% Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment. As of December 31, 2018, investments were as follows: Village Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - explicit $666,263 $-$-$-$666,263 State and local obligations 6,983,225 2,886,193 4,097,032 -- Corporate bonds 7,883,870 7,389,040 494,830 -- Totals $15,533,358 $10,275,233 $4,591,862 $-$666,263 Page 57 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Interest Rate Risk (cont.) Police Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 U.S. agency securities - implicit $4,877,943 $783,339 $1,836,871 $2,257,733 U.S. agency securities - explicit 428 181 247 - U.S. treasury 224,911 -224,911 - State and local obligations 1,066,231 201,669 662,035 202,527 Corporate bonds 4,791,935 493,152 2,744,415 1,554,368 Totals $10,961,448 $1,478,341 $5,468,479 $4,014,628 Firefighters' Pension Maturity (In Years) Investment Type Fair Value Less than 1 1-5 6-10 More than 10 U.S. agency securities - implicit $6,394,883 $99,495 $1,571,041 $4,724,347 $- U.S. agency securities - explicit 211 211 --- U.S. treasury 897,202 146,750 594,780 155,672 - State and local obligations 1,482,362 226,262 407,857 795,711 52,532 Corporate bonds 1,719,379 50,104 1,125,581 543,694 - Totals $10,494,037 $522,822 $3,699,259 $6,219,424 $52,532 Money-Weighted Rate of Return Police Pension Fund For the year ended December 31, 2018, the annual money-weighted rate of return on the police pension plan investments, net of pension plan investment expense, was (6.34)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Page 58 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) A.DEPOSITS AND INVESTMENTS (cont.) Money-Weighted Rate of Return (cont.) Firefighters' Pension Fund For the year ended December 31, 2018, the annual money-weighted rate of return on the firefighters' pension plan investments, net of pension plan investment expense, was (4.51)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. See Note I.D.1. for further information on deposit and investment policies. B.RECEIVABLES All of the receivables on the balance sheet are expected to be collected within one year. Page 59 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS Capital asset activity for the year ended December 31, 2018, was as follows: Beginning Balance Additions Deletions Ending Balance Governmental Activities Capital assets not being depreciated Land $616,829 $-$-$616,829 Land right of way 32,551,116 --32,551,116 Construction in progress 1,269,833 537,529 107,415 1,699,947 Total Capital Assets Not Being Depreciated 34,437,778 537,529 107,415 34,867,892 Capital assets being depreciated Buildings, building and land improvements 22,902,538 2,729,472 -25,632,010 Computer equipment 1,046,686 69,556 -1,116,242 Other equipment 1,795,701 110,313 21,172 1,884,842 Vehicles 158,053 -31,006 127,047 Infrastructure 34,706,912 2,193,593 -36,900,505 Internal service fund vehicles 8,050,704 373,597 1,046,134 7,378,167 Total Capital Assets Being Depreciated 68,660,594 5,476,531 1,098,312 73,038,813 Total Capital Assets 103,098,372 6,014,060 1,205,727 107,906,705 Less: Accumulated depreciation for Buildings, building and land improvements (9,426,028)(713,471)-(10,139,499) Computer equipment (870,089)(60,865)-(930,954) Other equipment (1,488,443)(66,202)21,172 (1,533,473) Vehicles (31,006)(12,705)31,006 (12,705) Infrastructure (25,624,989)(718,665)-(26,343,654) Internal service fund vehicles (3,864,399)(633,674)1,014,265 (3,483,808) Total Accumulated Depreciation (41,304,954)(2,205,582)1,066,443 (42,444,093) Net Capital Assets Being Depreciated 27,355,640 3,270,949 2,164,755 30,594,720 Total Governmental Activities Capital Assets, Net of Accumulated Depreciation $61,793,418 $3,808,478 $2,272,170 $65,462,612 Page 60 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Governmental Activities General government $552,502 Public safety 502,816 Public works 939,998 Culture and recreation 210,266 Total Governmental Activities Depreciation Expense $2,205,582 Beginning Balance Additions Deletions Ending Balance Business-type Activities Capital assets not being depreciation Land $8,292,265 $-$-$8,292,265 Construction in progress -501,442 -501,442 Total Capital Assets Not Being Depreciation 8,292,265 501,442 -8,793,707 Capital assets being depreciated Land improvements 3,235,813 84,825 -3,320,638 Buildings and building improvements 6,088,730 9,987 -6,098,717 Infrastructure 26,616,604 26,733 -26,643,337 Vehicles, machinery, and equipment 6,079,898 183,493 329,145 5,934,246 Total Capital Assets Being Depreciated 42,021,045 305,038 329,145 41,996,938 Total Capital Assets 50,313,310 806,480 329,145 50,790,645 Less: Accumulated depreciation for Land improvements (2,608,748)(69,040)-(2,677,788) Buildings and building improvements (3,319,250)(132,309)-(3,451,559) Infrastructure (9,404,131)(428,910)-(9,833,041) Vehicles, machinery, and equipment (5,099,021)(169,056)255,145 (5,012,932) Total Accumulated Depreciation (20,431,150)(799,315)255,145 (20,975,320) Net Capital Assets Being Depreciated 21,589,895 (494,277)74,000 21,021,618 Business-type Capital Assets, Net of Accumulated Depreciation $29,882,160 $7,165 $74,000 $29,815,325 Page 61 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) C.CAPITAL ASSETS (cont.) Depreciation expense was charged to functions as follows: Business-type Activities Waterworks $517,190 Sports Core 282,125 Total Business-type Activities Depreciation Expense $799,315 D.INTERFUND TRANSFERS The following is a schedule of interfund transfers: Fund Transferred To Fund Transferred From Amount Principal Purpose Sports Core Nonmajor Proprietary $234,088 To fund patio improvement project Infrastructure Nonmajor Governmental 7,790 Provide funding for various roadway projects Total - Fund Financial Statements $241,878 Less: Fund eliminations (241,878) Total Transfers - Government-W ide Statement of Activities $- Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. Page 62 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended December 31, 2018, was as follows: Beginning Balance Increases Decreases Ending Balance Amounts Due Within One Year Governmental Activities Notes payable $3,330,263 $-$227,000 $3,103,263 $217,000 Net pension liability - IMRF 3,477,710 -3,005,124 472,586 - Net pension liability - police 20,413,368 6,841,318 1,946,714 25,307,972 - Net pension liability - fire 22,087,721 4,880,931 2,064,689 24,903,963 - Capital leases -61,509 -61,509 9,671 Total other postemployment benefit liability 5,115,723 235,243 191,361 5,159,605 - Compensated absences 1,144,082 1,063,104 1,144,082 1,063,104 1,063,104 Total Governmental Activities Long-Term Liabilities $55,568,867 $13,082,105 $8,578,970 $60,072,002 $1,289,775 Business-type Activities Net pension liability - IMRF $1,418,718 $-$1,245,828 $172,890 $- Total other postemployment benefit liability 437,102 59,216 17,749 478,569 - Compensated absences 87,377 86,219 87,377 86,219 86,219 Total Business-type Activities Long-Term Liabilities $1,943,197 $145,435 $1,350,954 $737,678 $86,219 The Village is subject to the Illinois Municipal Code, which limits the amount of certain indebtedness to 8.625% of the most recent available equalized assessed valuation of the Village. As of December 31, 2018, the statutory debt limit for the Village was $130,311,957, providing a debt margin of $130,311,957. The compensated absences for governmental activities typically have been liquidated by the General Fund and the Infrastructure Fund and are considered all due within one year. The net pension liabilities and total other postemployment benefit liability have typically been liquidated by the General Fund. Page 63 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) E.LONG-TERM OBLIGATIONS (cont.) Notes Payable The Village has issued notes payable related to developer and intergovernmental agreements. Notes payable at December 31, 2018 consist of the following: Governmental Activities Notes Payable Date of Issue Final Maturity Interest Rates Original Indebtedness Balance December 31, 2018 TIF developer note June 6, 2005 February 1, 2024 8.00%$4,250,000 $3,103,263 Total Governmental Activities Notes Payable $3,103,263 The repayment of the TIF note payable is based on incremental real estate tax and sales tax received. As such, there is no debt service to maturity schedule. F. LEASE DISCLOSURES Lessee - Capital Leases In 2018 the Village acquired capital assets through a lease/purchase agreement. The gross amount of these assets under capital leases is $61,509, which are included in capital assets in the governmental activities. The future minimum lease obligations and the net present value on these minimum lease payments as of December 31, 2018, are as follows: Governmental Activities Years Principal Interest Totals 2019 $12,302 $-$12,302 2020 12,302 -12,302 2021 12,302 -12,302 2022 12,302 -12,302 2023 12,301 -12,301 Totals $61,509 $-$61,509 Page 64 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE II - DETAILED NOTES ON ALL FUNDS (cont.) G. RESTATEMENT OF NET POSITION Net position has been restated due to the implementation of GASB No. 75. The restatement is necessary to record the prior year total other postemployment liability. Governmental Activities Business-Type Activities Net position as of December 31, 2017 (as reported)$ 49,535,816 $ 36,509,603 Adjustment to record the total OPEB liability, related deferred inflows and deferred outflows as of December 31, 2017 (5,333,448)(455,705) Adjustment to remove prior year net OPEB obligation 924,076 131,587 Net position as of December 31, 2017 (as restated)$ 45,126,444 $ 36,185,485 Waterworks System Fund Sports Core Fund Net position as of December 31, 2017 (as reported)$ 23,466,260 $ 11,809,988 Adjustment to record the total OPEB liability, related deferred inflows and deferred outflows as of December 31, 2017 (229,138)(226,567) Adjustment to remove prior year net OPEB obligation 66,216 65,371 Net position as of December 31, 2017 (as restated)$ 23,303,338 $ 11,648,792 Internal Service Funds Net position as of December 31, 2017 (as reported)$ 6,236,162 Adjustment to record the total OPEB liability, related deferred inflows and deferred outflows as of December 31, 2017 (46,687) Adjustment to remove prior year net OPEB obligation 12,759 Net position as of December 31, 2017 (as restated)$ 6,202,234 Page 65 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION A.EMPLOYEES' RETIREMENT SYSTEM The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan which is a single-employer pension plan; and the Firefighters' Pension Plan which is a single-employer pension plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension plans. IMRF does issue 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. Illinois Municipal Retirement Fund Plan description.All employees (other than those covered by the Police and Firefighters' Pension plans) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2. For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings (average of the highest 48 consecutive months' earnings during the last 10 years) for credited service up to 15 years and 3% for each year thereafter. Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings for the first 15 years of service credit, plus 2% for each year of service after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased ever year after retirement, upon reaching age 67, by the lesser of 3% of the original pension amount or 1/2 of the increase in the Consumer Price Index of the original pension amount. Plan membership. At December 31, 2017, the measurement date, membership in the plan was as follows: Retirees and beneficiaries 116 Inactive, non-retired members 73 Active members 65 Total 254 Page 66 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Contributions. As set by statute, Village employees participating in IMRF are required to contribute 4.50% of their annual covered salary. The statute requires the Village to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Village’s actuarially determined contribution rate for calendar year 2017 was 13.24% of annual covered payroll for IMRF. The Village also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of that date. Summary of Significant Accounting Policies. For purposes of measuring the net pension liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of IMRF and additions to/deductions from IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations performed as of December 31, 2017 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Investment Rate of Return 7.50% Inflation 3.50% Salary increases 3.39% to 14.25%, including inflation Price inflation 2.75% Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP- 2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for non-disabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2017 (base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience. Page 67 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan investments was determined using an asset allocation study in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce long-term expected rate of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Projected Returns/Risks Asset Class Target Allocation One Year Arithmetic Ten Year Geometric Equities 38.00%8.85%7.39% International equities 17.00%9.55%7.59% Fixed income 27.00%3.05%3.00% Real estate 8.00%7.20%6.00% Alternatives 9.00% Private equity 13.15%8.15% Hedge funds 5.55%5.25% Commodities 4.40%2.75% Cash equivalents 1.00%2.25%2.25% Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.50%. The discount rate calculated using the December 31, 2016 measurement date was 7.50%. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on investments was applied to all periods of projected benefits to determine the total pension liability. Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to changes in the discount rate. The table below presents net pension liability/(asset) of the Village calculated using the discount rate of 7.50% as well as what the net pension liability/(asset) would be if it were to be calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $42,752,768 $38,176,461 $34,403,178 Plan fiduciary net pension 37,530,985 37,530,985 37,530,985 Net pension liability/(asset)$5,221,783 $645,476 $(3,127,807) Page 68 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar year ended December 31, 2017 were as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a) - (b) Balances at December 31, 2016 $38,512,784 $33,616,356 $4,896,428 Service cost 524,438 -524,438 Interest on total pension liability 2,837,540 -2,837,540 Differences between expected and actual experience of the total pension liability (677,198)-(677,198) Change of assumptions (1,138,825)-(1,138,825) Benefit payments, including refunds of employee contributions (1,882,278)(1,882,278)- Contributions - employer -645,761 (645,761) Contributions - employee -348,030 (348,030) Net investment income -5,792,968 (5,792,968) Other (net transfer)-(989,852)989,852 Balances at December 31, 2017 $38,176,461 $37,530,985 $645,476 Plan fiduciary net position as a percentage of the total pension liability %98.31 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2018, the Village recognized pension expense of $727,062. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $70,466 $426,857 Assumption changes -757,004 Net difference between projected and actual earnings on pension plan investments -1,592,560 Contributions subsequent to the measurement date 643,753 - Total $714,219 $2,776,421 Page 69 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Illinois Municipal Retirement Fund (cont.) The amount reported as deferred outflows resulting from contributions subsequent to the measurement date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year ending December 31, 2019. The remaining amounts reported as deferred outflows and inflows of resources related to pensions ($(2,705,955)) will be recognized in pension expense as follows: Year Ending December 31,Village 2019 $(743,275) 2020 (660,437) 2021 (633,808) 2022 (668,435) Total $(2,705,955) Police Pension Plan description. Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension Fund as provided for in Illinois Compiled Statutes. Tier 1 - 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 salary attached to the rank on the last day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of 75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement 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 paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. Page 70 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or onehalf the annual unadjusted percentage increase in the CPI, whichever is less. Plan membership. At December 31, 2018, the Police Pension membership consisted of: Retirees and beneficiaries 39 Inactive, non-retired members 1 Active members 39 Total 79 Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2018 was 50.02% of annual covered payroll. Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. Page 71 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2018 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.50% Projected salary increases 3.75% Cost-of-living adjustments 3.0% (1.25% for those hired on or after January 1, 2011) Mortality rates were based on the RP-2014 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.75% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $69,286,518 $60,472,616 $53,324,775 Plan fiduciary net position 35,164,644 35,164,644 35,164,644 Net pension liability $34,121,874 $25,307,972 $18,160,131 Page 72 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2018 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2017 $58,193,184 $37,779,816 $20,413,368 Service cost 890,871 -890,871 Interest on total pension liability 3,902,722 -3,902,722 Differences between expected and actual experience of the total pension liability 199,802 -199,802 Change of assumptions (182,060)-(182,060) Benefit payments, including refunds of employee contributions (2,531,903)(2,531,903)- Contributions - employer -1,946,714 (1,946,714) Contributions - employee -410,316 (410,316) Net investment income -(2,385,632)2,385,632 Administration -(54,667)54,667 Balances at December 31, 2018 $60,472,616 $35,164,644 $25,307,972 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2018, the Village recognized pension expense of $3,442,566. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $159,842 $560,892 Assumption changes 1,536,530 145,648 Net difference between projected and actual earnings on pension plan investments 3,128,433 - Total $4,824,805 $706,540 Page 73 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Police Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($4,118,265) will be recognized in pension expense as follows: Year Ending December 31,Amount 2019 $1,547,007 2020 710,744 2021 871,361 2022 989,153 Total $4,118,265 Firefighters' Pension Plan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined benefit single-employer pension plan. Although this is a single employer pension plan, the defined benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS 5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund. As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive a monthly 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 one twelfth of 2.5% of such monthly salary for each additional month over 20 years of service through 30 years of service to a maximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced 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 paid upon reaching at least the age 55, by 3% of the original pension and 3% compounded annually thereafter. Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75% of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50 and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase in the CPI, whichever is less. Page 74 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Plan membership. At December 31, 2018, the Firefighters' Pension Plan membership consisted of: Retirees and beneficiaries 49 Inactive, non-retired members 2 Active members 32 Total 83 Contributions. Participants contribute a fixed percentage of their base salary to the plans. At December 31, 2018, the contribution percentage was 9.455%. If a participant leaves covered employment with less than 20 years of service, accumulated participant contributions may be refunded without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90% funded by the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December 31, 2018 was 66.91% of annual covered payroll. Net pension liability/(asset). The net pension liability/(asset) was measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability/(asset) was determined by an annual actuarial valuation as of that date. Summary of significant accounting policies. The financial statements of the Firefighters' Pension Plan are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which contributions are due. The Village’s contributions are recognized when due and a formal commitment to provide the contributions are made. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Plan investments are reported at fair value. Short-term investments are reported at cost, which approximated fair value. Investments that do not have an established market are reported at estimated fair values. Page 75 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as of December 31, 2018 using the following actuarial methods and assumptions: Actuarial cost method Entry Age Normal Asset valuation method Market Value Actuarial assumptions Interest rate 6.75% Inflation 2.50% Projected salary increases 3.75% Cost-of-living adjustments 3.0% (1.25% for those hired on or after January 1, 2011) Mortality rates were based on the RP-2014 CHBCA Mortality Table. The actuarial assumptions were based on the results of an actuarial experience study conducted by the Illinois Department of Insurance dated October 5, 2017. Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension Plan was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liability of the Village calculated using the discount rate of 6.75% as well as what the net pension liability would be if it were to be calculated using a discount rate that is 1 percentage point lower (5.75%) or 1 percentage point higher (7.75%) than the current rate: 1% Decrease Current Discount Rate 1% Increase Total pension liability $58,089,426 $51,305,132 $45,736,073 Plan fiduciary net position 26,401,169 26,401,169 26,401,169 Net pension liability $31,688,257 $24,903,963 $19,334,904 Page 76 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the calendar year ended December 31, 2018 was as follows: Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/Asset (a) - (b) Balances at December 31, 2017 $50,181,210 $28,093,489 $22,087,721 Service cost 786,115 -786,115 Interest on total pension liability 3,347,278 -3,347,278 Differences between expected and actual experience of the total pension liability (96,554)-(96,554) Change of assumptions (156,879)-(156,879) Benefit payments, including refunds of employee contributions (2,756,038)(2,756,038)- Contributions - employer -2,064,689 (2,064,689) Contributions - employee -300,087 (300,087) Net investment income -(1,255,489)1,255,489 Administration -(45,569)45,569 Balances at December 31, 2018 $51,305,132 $26,401,169 $24,903,963 Pension expense and deferred outflows of resources and deferred inflows of resources related to pensions.For the year ended December 31, 2018, the Village recognized pension expense of $2,696,701. The Village reported deferred outflows and inflows of resources related to pension from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $32,750 $766,176 Assumption changes 511,244 125,503 Net difference between projected and actual earnings on pension plan investments 1,738,965 - Total $2,282,959 $891,679 Page 77 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Firefighters' Pension (cont.) The amounts reported as deferred outflows and inflows of resources related to pensions ($1,391,280) will be recognized in pension expense as follows: Year Ending December 31,Amount 2019 $699,391 2020 (11,126) 2021 126,288 2022 576,727 Total $1,391,280 PENSION SEGMENT INFORMATION Fiduciary Net Position Pension Trust Police Pension Firefighters' Pension Total Assets Cash and investments $113,281 $613,553 $726,834 Investments Certificates of deposit 616,104 248,274 864,378 Money markets 1,507,606 25,050 1,532,656 U.S. treasuries 224,911 897,202 1,122,113 U.S. agencies 4,878,371 6,395,094 11,273,465 State and local obligations 1,066,231 1,482,362 2,548,593 Corporate bonds 4,791,935 1,719,379 6,511,314 Mutual funds 21,855,588 14,959,740 36,815,328 Receivables Accrued interest 118,926 75,790 194,716 Prepaid items 3,202 1,469 4,671 Total Assets 35,176,155 26,417,913 61,594,068 Liabilities Accounts payable 11,511 16,744 28,255 Total Liabilities 11,511 16,744 28,255 Net Position Restricted for pension benefits $35,164,644 $26,401,169 $61,565,813 Page 78 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) A.EMPLOYEES' RETIREMENT SYSTEM (cont.) Changes in Plan Net Position Pension Trust Police Pension Firefighters' Pension Total Additions Contributions Employer $1,946,714 $2,064,689 $4,011,403 Employee 391,382 300,087 691,469 Other 18,953 -18,953 Total Contributions 2,357,049 2,364,776 4,721,825 Investment income Net appreciation in fair value (4,664,191)(2,426,049)(7,090,240) Interest 2,353,246 1,226,212 3,579,458 Total Investment income (2,310,945)(1,199,837)(3,510,782) Less investment expense 74,705 55,650 130,355 Net investment income (2,385,650)(1,255,487)(3,641,137) Total Additions (28,601)1,109,289 1,080,688 Deductions Benefits and refunds 2,531,903 2,756,038 5,287,941 Administrative 54,668 45,571 100,239 Total Deductions 2,586,571 2,801,609 5,388,180 Net Decrease in Net Position (2,615,172)(1,692,320)(4,307,492) Net Position, Beginning of Year 37,779,816 28,093,489 65,873,305 Net Position, End of Year $35,164,644 $26,401,169 $61,565,813 B.RISK MANAGEMENT The Village is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets; errors and omissions; workers compensation; and health care of its employees. The Village participates in a public entity risk pool called IRMA to provide coverage for losses from (torts; theft of, damage to, or destruction of assets; errors and omission; and workers compensation). However, other risks, such as (health care of its employees) are accounted for and financed by the Village in an internal service fund - the Self-Insurance Fund. Self Insurance For medical and dental claims, the uninsured risk of loss is $85,000 per incident and $2,383,799 in the aggregate for a policy year. The Village has purchased commercial insurance for claims in excess of those amounts. Settled claims have not exceeded the commercial coverage in any of the past three years. Page 79 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) Self Insurance (cont.) All funds of the Village along with retirees, the Oak Brook Park District and COBRA participate in the risk management program. Premiums paid into the Self-Insurance Fund are based upon equivalent premium estimates.$143,349 was assigned for that reserve at year end, and is included in unrestricted net position of the internal service fund. A liability for a claim is established if information indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities include an amount for claims that have been incurred but not reported. The Village does not allocate overhead costs or other nonincremental costs to the claims liability. Claims Liability Prior Year Current Year Unpaid claims - Beginning of Year $42,919 $200,897 Current year claims and changes in estimates (2,136,760)(1,940,257) Claim payments 2,294,738 1,882,709 Unpaid Claims - End of Year $200,897 $143,349 Public Entity Risk Pool IRMA The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois that have formed an association under the Illinois Intergovernmental Co-operations Statute to pool their risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’ compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The Village’s payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate funds. Each member assumes the first $2,500 of each occurrence, and IRMA has a mix of self-insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors. Page 80 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) B.RISK MANAGEMENT (cont.) Public Entity Risk Pool (cont.) IRMA (cont.) Initial contributions are determined each year based on the individual member’s eligible revenue as defined in the bylaws of IRMA and experience modification factors based on past member loss experience. Members have a contractual obligation to fund any deficit of IRMA attributable to any membership year during which they were a member. Supplemental contributions may be required to fund these deficits. C.COMMITMENTS AND CONTINGENCIES Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting Standards Board pronouncements are met. The liability and expenditure for claims and judgments are only reported in governmental funds if it has matured. Claims and judgments are recorded in the government-wide statements and proprietary funds as expenses when the related liabilities are incurred. The Village has active construction projects as of December 31, 2018. W ork that has been completed on these projects but not yet paid for (including contract retainages) is reflected as accounts payable and expenditures. D.OTHER POSTEMPLOYMENT BENEFITS Plan description.In addition to providing the pension benefits described, the Village provides postemployment health care (OPEB) benefits for retirees and disabled employees through a single- employer defined benefit plan (the Plan). The benefits, benefit levels, employee contributions and any employer contributions are governed by the Village and can be amended by the Village through its personnel manual and union contracts. The Plan does not issue a separate report. The activity of the Plan is reported in the Village's Self-Insurance Fund. No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. Contributions and benefits provided. The Village provides postemployment health care benefits to its retirees and certain disabled employees. To be eligible for benefits, an employee must qualify for retirement under one of the Village's retirement plans or meet COBRA requirements. For certain disabled employees who qualify for health insurance benefits under the Public Safety Employee Benefits Act (PSEBA), the Village is required to pay 100% of the cost of basis health insurance for the employee and their dependents for their lifetime. All health care benefits are provided through the Village's self-insured health plan. The benefit levels are the same as those afforded to active employees. Benefits include general inpatient and outpatient medical services; mental, nervous, and substance abuse care; vision care; dental care; and prescriptions. Eligibility in Village sponsored health care plans is discontinued upon eligibility for federally sponsored health care benefits. Page 81 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) All retirees contribute 100% of the actuarially determined premium to the Plan to cover the cost of providing the benefits to the retirees via the self-insured plan (pay as you go), which results in an implicit subsidy to the Village. The Village pays 100% of the actuarially determined premium for certain disabled employees. Since the Village is self-insured, these amounts fluctuate on an annual basis. The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. Active employees do not contribute to the Plan until retirement. Employees covered by benefit terms. At December 31, 2018, the following employees were covered by the benefit terms: Inactive plan members or beneficiaries currently receiving benefit payments 32 Inactive plan members entitled to but not yet receiving benefit payments 16 Active plan members 128 Total 176 Total OPEB Liability. The Village's total OPEB liability of $5,638,174 was measured as of December 31, 2018, and was determined by an actuarial valuation as of that date. Actuarial assumptions and other inputs. The total OPEB liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.5% Salary increases 3.5% Healthcare cost trend rates 5.0 - 7.5% Retirees' share of benefit-related costs 100% The discount rate was based on the yield for 20-year tax-exempt general obligation municipal bonds from the Bond Buyer 20-Bond GO Index. Mortality rates were based on the RP-2017 Healthy Annuitant Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale AA. The actuarial assumptions used in the December 31, 2018 valuation were based on the results of an actuarial experience study for the period January 1, 2017 - December 31, 2017. Page 82 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) CHANGES IN THE TOTAL OPEB LIABILITY Total OPEB Liability Balances at December 31, 2017 $5,552,825 Changes for the year: Service cost 325,218 Interest 205,569 Differences between expected and actual experience 79,566 Changes in assumptions or other inputs (315,894) Benefit payments (209,110) Net changes 85,349 Balances at December 31, 2018 $5,638,174 Changes of assumptions and other inputs reflect a change in the discount rate from 3.56 percent in 2017 to 4.11 percent in 2018. Sensitivity of the total OPEB liability to changes in the discount rate.The following presents the total OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.11 percent) or 1-percentage-point higher (5.11 percent) than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.11%)(4.11%)(5.11%) Total OPEB liability $6,232,066 $5,638,174 $5,122,852 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates.The following presents the total OPEB liability of the Village, as well as what the Village's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower ( 6.5 percent decreasing to 4.0 percent) or 1-percentage-point higher (8.5 percent decreasing to 6.0 percent) than the current healthcare cost trend rates: 1% Decrease (6.5% Decreasing to 4.0%) Healthcare Cost Trend Rates (7.5% Decreasing to 5.0%) 1% Increase (8.5% Decreasing to 6.0%) Total OPEB liability $4,876,208 $5,638,174 $6,570,496 Page 83 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) D.OTHER POSTEMPLOYMENT BENEFITS (cont.) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB. For the year ended December 31, 2018, the Village recognized negative OPEB expense of $501,426. At December 31, 2018, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $69,620 $- Changes of assumptions or other inputs -276,407 Total $69,620 $276,407 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31, Amount 2019 $(29,541) 2020 (29,541) 2021 (29,541) 2022 (29,541) 2023 (29,541) Thereafter (59,082) Total $(206,787) E.TAX ABATEMENT Tax abatements are a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments. Page 84 VILLAGE OF OAK BROOK NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2018 NOTE III - OTHER INFORMATION (cont.) E.TAX ABATEMENT (cont.) The Village through its Promenade Tax Incremental Financing District has entered into a tax abatement agreement with a developer in the form of a tax incremental financing incentive payment to further the growth of the Village, facilitate the redevelopment of the entire Redevelopment Project Areas, stimulate redevelopment of other parcels in the Butterfield/22nd Street corridor, increase the assessed valuation of the real estate situated within the Village, increase the sales tax revenues realized by the Village, foster increased economic activity within the Village, and other be in the best interest of the Village by furthering the health, safety, and welfare of its residents and taxpayers. The abatement is authorized through the Redevelopment Project Area Plan Agreement. The developers pay property taxes as they become due, and after meeting the criteria established in the development agreements, are entitled to future incentive payments that directly correlate to the taxes paid. Agreement Description Calculation Method Developer Commitment 2018 Payments Promenade Redevelopment Project 100% incremental property taxes, 20% incremental sales taxes Construction of an upscale retail and commercial shopping center $489,820 F.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved the following: Statement No. 83, Certain Asset Retirement Obligations Statement No. 84, Fiduciary Activities Statement No. 87, Leases Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period Statement No. 90, Majority Equity Interest an amendment of GASB Statements No. 14 and No. 61 When they become effective, application of these standards may restate portions of these financial statements. Page 85 R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N G E N E R A L F U N D General Fund –to account for resources traditionally associated with governments which are not accounted for in another fund. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual REVENUES Intergovernmental $13,610,200 $13,610,200 $13,900,471 $290,271 $13,640,557 Utility taxes 5,792,250 5,792,250 6,137,283 345,033 6,033,358 Licenses and permits 1,784,070 1,784,070 3,185,402 1,401,332 2,205,571 Charges for services 1,052,100 1,052,100 1,155,142 103,042 1,106,204 Fines, forfeitures and penalties 150,500 150,500 191,825 41,325 144,833 Investment income 195,000 195,000 329,065 134,065 190,254 Miscellaneous revenues 383,250 383,250 599,072 215,822 405,933 Total Revenues 22,967,370 22,967,370 25,498,260 2,530,890 23,726,710 EXPENDITURES CURRENT General government 6,542,560 6,650,878 6,548,865 102,013 4,757,533 Public safety 16,748,565 16,804,715 16,610,925 193,790 16,113,415 Public works 993,820 993,820 761,682 232,138 708,940 Culture and recreation 889,845 893,875 878,135 15,740 874,892 Debt Service Principal 185,000 185,000 -185,000 280,000 Interest and fiscal charges 78,350 78,350 -78,350 9,800 Total Expenditures 25,438,140 25,606,638 24,799,607 807,031 22,744,580 Excess (deficiency) of revenues over (under) expenditures (2,470,770)(2,639,268)698,653 3,337,921 982,130 OTHER FINANCING SOURCES (USES) Installment note proceeds 2,475,165 2,475,165 -(2,475,165)- Total Other Financing Sources (Uses)2,475,165 2,475,165 -(2,475,165)- Net Change in Fund Balance $4,395 $(164,103)698,653 $862,756 982,130 FUND BALANCE - Beginning of Year 21,054,674 20,072,544 FUND BALANCE - END OF YEAR $21,753,327 $21,054,674 See independent auditors' report and accompanying notes to required supplementary information. Page 86 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - HOTEL/MOTEL TAX FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual REVENUES Hotel and motel taxes $1,340,000 $1,340,000 $1,340,495 $495 $1,265,583 Investment income 30,000 30,000 76,703 46,703 42,060 Miscellaneous revenues --5,200 5,200 44,095 Total Revenues 1,370,000 1,370,000 1,422,398 52,398 1,351,738 EXPENDITURES CURRENT General government 99,550 99,550 99,550 -93,400 Culture and recreation 1,286,515 1,286,515 691,261 595,254 1,592,540 Total Expenditures 1,386,065 1,386,065 790,811 595,254 1,685,940 Net Change in Fund Balance $(16,065)$(16,065)631,587 $647,652 (334,202) FUND BALANCE - Beginning of Year 3,959,304 4,293,506 FUND BALANCE - END OF YEAR $4,590,891 $3,959,304 See independent auditors' report and accompanying notes to required supplementary information. Page 87 See independent auditors' report and accompanying notes to required supplementary information.Page 88 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Four Most Recent Fiscal Years 2015 2016 2017 2018 Total pension liability Service cost 613,861$ 581,062$ 558,199$ 524,438$ Interest 2,465,082 2,615,047 2,706,946 2,837,540 Differences between expected and actual experience (770,401) (398,570) 243,794 (677,198) Changes of assumptions 1,163,670 89,849 (135,521) (1,138,825) Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) (1,882,278) Net change in total pension liability 2,119,046 1,421,115 1,735,214 (336,323) Total pension liability - beginning 33,237,409 35,356,455 36,777,570 38,512,784 Total pension liability - ending (a)35,356,455$ 36,777,570$ 38,512,784$ 38,176,461$ Plan fiduciary net position Employer contributions 749,983$ 715,089$ 723,634$ 645,761$ Employee contributions 238,409 238,021 243,012 348,030 Net investment income 1,874,762 159,375 2,199,050 5,792,968 Benefit payments, including refunds of member contributions (1,353,166) (1,466,273) (1,638,204) (1,882,278) Other (net transfer)(294,611) 63,416 247,674 (989,852) Net change in plan fiduciary net position 1,215,377 (290,372) 1,775,166 3,914,629 Plan fiduciary net position - beginning 30,916,185 32,131,562 31,841,190 33,616,356 Plan fiduciary net position - ending (b)32,131,562$ 31,841,190$ 33,616,356$ 37,530,985$ Employer's net pension liability - ending (a) - (b)3,224,893$ 4,936,380$ 4,896,428$ 645,476$ Plan fiduciary net position as a percentage of the total pension liability 90.88%86.58%87.29%98.31% Covered payroll 5,168,916$ 5,230,241$ 5,400,260$ 4,875,980$ Employer's net pension liability as a percentage of covered-employee payroll 62.39%94.38%90.67%13.24% Notes to Schedule: The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. See independent auditors' report and accompanying notes to required supplementary information.Page 89 VILLAGE OF OAK BROOK ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS Four Most Recent Fiscal Years 2015 2016 2017 2018 Actuarially determined contribution 715,497$ 723,635$ 611,935$ 647,428$ Contributions in relation to the actuarially determined contribution (715,089) (723,634) (645,761) (647,429) Contribution deficiency (excess)408$ 1$ (33,826)$ (1)$ Covered payroll 5,230,241$ 5,400,260$ 4,875,980$ 4,930,905$ Contributions as a percentage of covered- employee payroll 13.67%13.40%13.24%13.13% Notes to Schedule: Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation 2.75% Salary increases Investment rate of return 7.50% Retirement Age Mortality RP- 2014 CHBCA Other information: There were no benefit changes during the year. 3.75% to 14.50% including inflation Experience-based table of rates that are specific to the type of eligibility condition The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not available. Entry age normal Level percentage of payroll, closed 26 years 5-Year Smoothed Market See independent auditors' report and accompanying notes to required supplementary information.Page 90 2014 2015 2016 2017 2018 Total pension liability Service cost 826,067$ 816,276$ 800,389$ 833,296$ 890,871$ Interest 3,141,175 3,338,238 3,563,145 3,650,633 3,902,722 Differences between expected and actual experience 1,279,682 (48,037) (856,825) (347,589) 199,802 Changes of assumptions - 1,597,133 96,439 1,964,218 (182,060) Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) (2,315,047) (2,531,903) Net change in total pension liability 2,958,231 3,356,924 1,238,309 3,785,511 2,279,432 Total pension liability - beginning 46,854,212 49,812,440 53,169,364 54,407,673 58,193,184 Total pension liability - ending (a)49,812,443$ 53,169,364$ 54,407,673$ 58,193,184$ 60,472,616$ Plan fiduciary net position Employer contributions 1,259,824$ 1,336,683$ 1,527,927$ 1,748,025$ 1,946,714$ Employee contributions 358,339 358,499 383,238 386,727 410,316 Net investment income 1,115,158 (429,967) 2,176,018 4,461,837 (2,385,632) Benefit payments, including refunds of member contributions (2,288,693) (2,346,686) (2,364,839) (2,315,047) (2,531,903) Administration (47,609) (38,647) (39,522) (35,776) (54,667) Net change in plan fiduciary net position 397,019 (1,120,118) 1,682,822 4,245,766 (2,615,172) Plan fiduciary net position - beginning 32,574,327 32,971,346 31,851,228 33,534,050 37,779,816 Plan fiduciary net position - ending (b)32,971,346$ 31,851,228$ 33,534,050$ 37,779,816$ 35,164,644$ Village's net pension liability - ending (a) - (b)16,841,097$ 21,318,136$ 20,873,623$ 20,413,368$ 25,307,972$ Plan fiduciary net position as a percentage of the total pension liability 66.19%59.91%61.63%64.92%58.15% Covered payroll 3,631,184$ 3,735,548$ 3,829,224$ 3,892,216$ 3,849,863$ Village's net pension liability as a percentage of covered payroll 463.79%570.68%545.11%524.47%657.37% Notes to Schedule: VILLAGE OF OAK BROOK The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to reflect the most recent study conducted by the Illinois Department of Insurance. Last Five Fiscal Years SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS POLICE PENSION FUND See independent auditors' report and accompanying notes to required supplementary information.Page 91 2009 2010 2011 2012 Actuarially determined contribution 958,641$ 944,808$ 885,339$ 969,024$ Contributions in relation to the actuarially determined contribution 958,641 944,808 674,170 977,367 Contribution deficiency (excess)-$ -$ 211,169$ (8,343)$ Covered-employee payroll 3,288,064$ 3,433,002$ 3,288,064$ 3,310,998$ Contributions as a percentage of covered payroll 29.16%27.52%20.50%29.52% Notes to Schedule: N/A - Information is not available prior to 2009. Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality Mortality rates were based on the RP-2014 BCA Mortality Table Entry-age normal Level percentage of payroll, closed 23 years Market value 3.75%, average, including inflation 50-70 2.50% 6.75%, net of pension plan investment expense, including inflation The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. POLICE PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS VILLAGE OF OAK BROOK Last Ten Fiscal Years See independent auditors' report and accompanying notes to required supplementary information.Page 92 2013 2014 2015 2016 2017 2018 1,205,519$ 1,485,673$ 1,550,233$ 1,708,330$ 1,748,025$ 1,946,714$ 1,171,537 1,259,824 1,336,683 1,527,927 1,748,025 1,946,714 33,982$ 225,849$ 213,550$ 180,403$ -$ -$ 3,646,309$ 3,598,016$ 3,631,184$ 3,735,548$ 3,829,224$ 3,892,216$ 32.13%35.01%36.81%40.90%45.65%50.02% See independent auditors' report and accompanying notes to required supplementary information.Page 93 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 5.54%-1.32%6.89%13.35%-6.34% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Last Five Fiscal Years SCHEDULE OF INVESTMENT RETURNS POLICE PENSION FUND VILLAGE OF OAK BROOK See independent auditors' report and accompanying notes to required supplementary information.Page 94 2014 2015 2016 2017 2018 Total pension liability Service cost 746,748$ 746,748$ 756,771$ 782,892$ 786,115$ Interest 2,926,848 3,040,301 3,229,650 3,287,875 3,347,278 Differences between expected and actual experience 507,637 163,758 (569,891) (768,292) (96,554) Changes of assumptions - 1,474,675 90,432 300,225 (156,879) Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) (2,695,712) (2,756,038) Net change in total pension liability 1,795,742 2,810,076 861,692 906,988 1,123,922 Total pension liability - beginning 43,806,712 45,602,454 48,412,530 49,274,222 50,181,210 Total pension liability - ending (a)45,602,454$ 48,412,530$ 49,274,222$ 50,181,210$ 51,305,132$ Plan fiduciary net position Employer contributions 1,570,742$ 1,414,530$ 1,801,476$ 2,080,231$ 2,064,689$ Employee contributions 267,458 269,349 273,775 295,477 300,087 Net investment income 1,178,816 (256,566) 1,794,320 3,459,107 (1,255,489) Benefit payments, including refunds of member contributions (2,385,491) (2,615,406) (2,645,270) (2,695,712) (2,756,038) Administration (75,386) (46,351) (40,567) (41,034) (45,569) Net change in plan fiduciary net position 556,139 (1,234,444) 1,183,734 3,098,069 (1,692,320) Plan fiduciary net position - beginning 24,489,991 25,046,130 23,811,686 24,995,420 28,093,489 Plan fiduciary net position - ending (b)25,046,130$ 23,811,686$ 24,995,420$ 28,093,489$ 26,401,169$ Village's net pension liability - ending (a) - (b)20,556,324$ 24,600,844$ 24,278,802$ 22,087,721$ 24,903,963$ Plan fiduciary net position as a percentage of the total pension liability 54.92%49.18%50.73%55.98%51.46% Covered payroll 2,818,219$ 2,812,001$ 2,918,844$ 3,085,809$ 3,187,983$ Village's net pension liability as a percentage of covered payroll 729.41%874.85%831.80%715.78%781.18% Notes to Schedule: VILLAGE OF OAK BROOK The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to reflect the most recent study conducted by the Illinois Department of Insurance. FIREFIGHTERS' PENSION FUND SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS Last Five Fiscal Years 2009 2010 2011 2012 Actuarially determined contribution 839,550$ 933,925$ 1,082,677$ 1,065,173$ Contributions in relation to the actuarially determined contribution 839,550 933,925 995,110 1,001,528 Contribution deficiency (excess) -$ -$ 87,567$ 63,645$ Covered payroll 2,668,624$ 2,573,691$ 2,668,624$ 2,687,097$ Contributions as a percentage of covered payroll 31.46% 36.29% 37.29% 37.27% Notes to Schedule: N/A - Information is not available prior to 2009. Valuation date: Actuarially determined contributions are calculated as of December 31 of the current fiscal year. Methods and assumptions used to determine contribution rates: Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation Salary increases Investment rate of return Retirement age Mortality 50-70 Mortality rates were based on the RP-2014 BCA Mortality Table Level percentage of payroll, closed 23 years Market Value 2.50% 3.75%, average, including inflation 6.75%, net of pension plan investment expense, including inflation Entry-age normal The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is derived from actuarial valuations developed in conformity with GASB Statement No. 25 and 27. VILLAGE OF OAK BROOK Last Ten Fiscal Years FIREFIGHTERS' PENSION FUND SCHEDULE OF EMPLOYER CONTRIBUTIONS See independent auditors' report and accompanying notes to required supplementary information. Page 95 See independent auditors' report and accompanying notes to required supplementary information.Page 96 2013 2014 2015 2016 2017 2018 1,144,966$ 1,698,405$ 1,826,637$ 2,015,441$ 2,080,231$ 2,064,689$ 1,057,081 1,570,742 1,414,530 1,801,476 2,080,231 2,064,689 87,885$ 127,663$ 412,107$ 213,965$ -$ -$ 2,762,080$ 2,674,017$ 2,818,219$ 2,812,001$ 2,918,844$ 3,085,809$ 38.27%58.74%50.19%64.06%71.27%66.91% See independent auditors' report and accompanying notes to required supplementary information.Page 97 2014 2015 2016 2017 2018 Annual money-weighted rate of return, net of investment expense 5.10%-1.05%7.62%13.95%-4.51% Notes to Schedule: The Pension implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available. SCHEDULE OF INVESTMENT RETURNS Last Five Fiscal Years FIREFIGHTERS' PENSION FUND VILLAGE OF OAK BROOK See Auditors' Report and Notes to Required Supplementary Information Page 98 VILLAGE OF OAK BROOK OTHER POSTEMPLOYMENT BENEFIT PLAN SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS Most Recent Fiscal Year 2018 Total OPEB liability Service cost 325,218$ Interest 205,569 Other Changes 79,566 Changes of assumptions (315,894) Benefit payments, including refunds of member contributions (209,110) Net change in total OPEB liability 85,349 Total OPEB liability - beginning 5,552,825 Total OPEB liability - ending 5,638,174$ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% Covered payroll 11,490,969$ Village's total OPEB liability as a percentage of covered payroll 49.07% Notes to Schedule: The Village implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2018 is not available. VILLAGE OF OAK BROOK NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended December 31, 2018 BUDGETARY INFORMATION 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. Enterprise and Internal Service Funds are on the accrual basis and a current financial resources measurement focus except the Village does not budget depreciation or the impact from the net pension liability but does budget capital outlay and pension payments. 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 does not adopt a budget for the Foreign Fire Insurance Fund or the Pension Trust Funds. 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 Budget Officer 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 resident comments. 4. Subsequently, the budget is adopted by the Village Board. 5. Annual budgets are adopted for all funds on a basis consistent with generally accepted accounting principles. 6. Formal budgetary integration is employed as a management control device during the year for all funds of the Village. 7. Appropriations lapse at year end. 8. The Village Manager and Budget Officer are authorized to transfer budgeted amounts between line items within any program; however, any revisions that alter the total expenditures of any program or fund must be approved by the Village Board. The level of legal control is the individual program budget in total. 9. Budgeted amounts are as originally adopted with the exceptions of approved transfers which were not material in relation to the budgets taken as a whole. See independent auditors' report. Page 99 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 with Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual INTERGOVERNMENTAL Municipal sales tax $12,453,000 $12,453,000 $12,586,320 $133,320 $12,381,929 Illinois state income and use tax 869,700 869,700 986,491 116,791 927,953 Corporate personal property replacement taxes 251,000 251,000 263,964 12,964 298,832 York Township road and bridge tax 24,000 24,000 37,879 13,879 24,462 Grants 12,500 12,500 25,817 13,317 7,381 Total Intergovernmental 13,610,200 13,610,200 13,900,471 290,271 13,640,557 Utility taxes 5,792,250 5,792,250 6,137,283 345,033 6,033,358 Licenses and permits 1,784,070 1,784,070 3,185,402 1,401,332 2,205,571 Charges for services 1,052,100 1,052,100 1,155,142 103,042 1,106,204 Fines, forfeitures and penalties 150,500 150,500 191,825 41,325 144,833 Investment income 195,000 195,000 329,065 134,065 190,254 MISCELLANEOUS Franchise fees 215,000 215,000 219,460 4,460 216,884 Other 168,250 168,250 379,612 211,362 189,049 Total Miscellaneous 383,250 383,250 599,072 215,822 405,933 TOTAL REVENUES $22,967,370 $22,967,370 $25,498,260 $2,530,890 $23,726,710 Page 100 Page 101 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual GENERAL GOVERNMENT Legislative and general management Board of Trustees Personnel 82,415$ 82,415$ 81,626$ 789$ 77,284$ Materials and supplies 3,700 3,700 306 3,394 436 Operation and contractual 66,500 66,500 53,008 13,492 49,630 Total board of trustees 152,615 152,615 134,940 17,675 127,350 Village clerk Personnel 144,635 142,110 129,337 12,773 166,984 Materials and supplies 3,435 3,435 2,702 733 2,602 Operation and contractual 15,000 17,525 15,326 2,199 5,040 Total Village clerk 163,070 163,070 147,365 15,705 174,626 Legal Personnel - - - - - Materials and supplies 70 70 - 70 288 Operation and contractual 293,000 293,000 270,701 22,299 254,554 Total legal 293,070 293,070 270,701 22,369 254,842 General management Personnel 314,290 314,290 312,591 1,699 304,713 Materials and supplies 55,175 55,175 48,273 6,902 43,297 Operation and contractual 16,670 16,670 11,949 4,721 21,226 Total general management 386,135 386,135 372,813 13,322 369,236 Human resources Personnel 129,610 154,275 157,081 (2,806) 140,930 Materials and supplies 2,550 2,550 763 1,787 614 Operation and contractual 69,100 84,880 81,662 3,218 29,418 Total human resources 201,260 241,705 239,506 2,199 170,962 Risk management Personnel 21,505 21,505 22,452 (947) 20,532 Materials and supplies 1,000 1,000 - 1,000 - Operation and contractual 346,250 282,530 251,162 31,368 447,255 Total risk management 368,755 305,035 273,614 31,421 467,787 Emergency management Personnel 600 600 727 (127) - Materials and supplies 1,000 1,000 2,274 (1,274) 4,296 Operation and contractual 13,680 13,680 9,616 4,064 13,860 Total emergency management 15,280 15,280 12,617 2,663 18,156 Information systems Personnel 325,230 327,260 329,991 (2,731) 307,152 Materials and supplies 29,600 23,580 22,663 917 36,596 Operation and contractual 500,715 481,480 479,666 1,814 436,867 Capital 183,200 225,670 225,667 3 315,269 Total information systems 1,038,745 1,057,990 1,057,987 3 1,095,884 2018 Budgeted Amounts Page 102 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual 2018 Budgeted Amounts GENERAL GOVERNMENT (continued) Legislative and general management (continued) Customer service Personnel 54,375$ 51,285$ 49,024$ 2,261$ 46,111$ Operation and contractual - 3,090 3,087 3 1,753 Total customer service 54,375 54,375 52,111 2,264 47,864 Total legislative and general management 2,673,305 2,669,275 2,561,654 107,621 2,726,707 Community development management Administration Personnel 364,885 379,140 376,466 2,674 377,445 Materials and supplies 2,380 2,380 790 1,590 589 Operation and contractual 31,100 16,845 2,188 14,657 17,447 Total administration 398,365 398,365 379,444 18,921 395,481 Code enforcement Personnel 543,770 543,770 531,118 12,652 518,912 Materials and supplies 4,950 4,950 3,902 1,048 3,897 Operation and contractual 48,340 48,340 38,739 9,601 40,100 Total code enforcement 597,060 597,060 573,759 23,301 562,909 Total community development management 995,425 995,425 953,203 42,222 958,390 Financial services Financial services management Personnel 141,795 141,795 140,640 1,155 136,075 Materials and supplies - 5,000 4,161 839 - Operation and contractual 66,285 61,285 58,608 2,677 53,769 Total financial services management 208,080 208,080 203,409 4,671 189,844 Accounting and reporting Personnel 319,975 319,975 317,940 2,035 304,942 Materials and supplies 2,945 2,945 3,380 (435) 2,464 Operation and contractual 28,480 28,480 28,417 63 28,445 Total accounting and reporting 351,400 351,400 349,737 1,663 335,851 PSEBA benefits Personnel 42,305 42,305 39,413 2,892 41,136 Total PSEBA benefits 42,305 42,305 39,413 2,892 41,136 Page 103 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual 2018 Budgeted Amounts GENERAL GOVERNMENT (continued) Financial services (continued) Purchasing Personnel 100,175$ 100,175$ 97,772$ 2,403$ 95,321$ Materials and supplies 21,250 21,250 16,504 4,746 16,375 Operation and contractual - - - - - Total purchasing 121,425 121,425 114,276 7,149 111,696 Total financial services 723,210 723,210 706,835 16,375 678,527 Municipal building improvement Operation and contractual 25,000 2,230 2,228 2 - Capital 2,707,665 2,842,783 2,822,690 20,093 882,909 Total municipal building improvement 2,732,665 2,845,013 2,824,918 20,095 882,909 Expenditure reimbursements paid to other funds 131,315 131,315 131,315 - 128,300 Subtotal general government 7,255,920 7,364,238 7,177,925 186,313 5,374,833 Less reimbursements from other funds (713,360) (713,360) (629,060) (84,300) (617,300) Total general government 6,542,560 6,650,878 6,548,865 102,013 4,757,533 PUBLIC SAFETY Police department Police services management Personnel 559,880 586,955 585,596 1,359 540,405 Materials and supplies 3,000 3,000 3,382 (382) 2,424 Operation and contractual 48,155 48,155 45,045 3,110 58,485 Total police services management 611,035 638,110 634,023 4,087 601,314 Police field services Personnel 5,064,560 5,174,450 5,171,431 3,019 4,759,627 Materials and supplies 13,300 13,300 14,823 (1,523) 14,882 Operation and contractual 292,160 292,160 289,723 2,437 358,751 Capital 7,900 7,900 7,965 (65) - Total police field services 5,377,920 5,487,810 5,483,942 3,868 5,133,260 Police auxiliary services Personnel 89,295 89,295 79,079 10,216 93,392 Operation and contractual 1,875 1,875 1,632 243 1,632 Total police auxiliary services 91,170 91,170 80,711 10,459 95,024 Support services general Personnel 733,295 704,710 680,677 24,033 702,127 Materials and supplies 66,455 75,960 75,485 475 64,348 Operation and contractual 2,865 2,865 2,551 314 2,562 Total support services general 802,615 783,535 758,713 24,822 769,037 Support services detectives Personnel 1,049,665 1,026,085 1,018,758 7,327 996,144 Materials and supplies 2,400 2,400 2,494 (94) 2,276 Operation and contractual 26,770 26,770 28,186 (1,416) 49,996 Total support services detectives 1,078,835 1,055,255 1,049,438 5,817 1,048,416 Page 104 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual 2018 Budgeted Amounts PUBLIC SAFETY (continued) Police department (continued) Police support services records Personnel 235,480$ 235,480$ 231,693$ 3,787$ 227,604$ Materials and supplies 20,935 20,935 18,015 2,920 18,323 Operation and contractual 487,360 487,360 466,910 20,450 439,679 Total support services records 743,775 743,775 716,618 27,157 685,606 Total police department 8,705,350 8,799,655 8,723,445 76,210 8,332,657 Fire department Fire, rescue, and EMS operations Personnel 6,109,140 6,043,875 6,012,476 31,399 5,835,994 Materials and supplies 46,755 52,580 50,014 2,566 39,048 Operation and contractual 279,110 279,110 273,006 6,104 307,668 Capital 39,375 95,525 86,480 9,045 168,584 Total fire, rescue, and EMS operations 6,474,380 6,471,090 6,421,976 49,114 6,351,294 Fire services management Personnel 357,870 365,040 354,678 10,362 346,269 Materials and supplies 5,645 5,645 4,364 1,281 2,213 Operation and contractual 200,310 193,140 187,118 6,022 187,600 Other 10,000 10,000 5,866 4,134 - Total fire services management 573,825 573,825 552,026 21,799 536,082 Special teams operations Materials and supplies 10,605 10,605 9,701 904 6,640 Operation and contractual 8,415 8,415 8,361 54 8,618 Total special teams operations 19,020 19,020 18,062 958 15,258 Rescue and fire training Personnel 45,490 45,490 33,323 12,167 41,246 Materials and supplies 925 925 60 865 - Operation and contractual 1,000 1,000 - 1,000 - Total rescue and fire training 47,415 47,415 33,383 14,032 41,246 Emergency medical services Personnel 37,815 32,530 23,829 8,701 27,785 Materials and supplies 19,990 19,990 16,926 3,064 21,320 Operation and contractual 628,230 633,515 631,881 1,634 619,425 Capital 59,700 59,700 60,699 (999) 34,450 Total emergency medical services 745,735 745,735 733,335 12,400 702,980 Fire prevention and public safety Personnel 166,075 131,210 120,917 10,293 122,985 Materials and supplies 9,965 9,965 6,688 3,277 6,344 Operation and contractual 6,800 6,800 1,093 5,707 4,569 Total fire prevention and public safety 182,840 147,975 128,698 19,277 133,898 Total fire department 8,043,215 8,005,060 7,887,480 117,580 7,780,758 Total public safety 16,748,565 16,804,715 16,610,925 193,790 16,113,415 Page 105 VILLAGE OF OAK BROOK SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual 2018 Budgeted Amounts PUBLIC WORKS Mosquito control Operation and contractual 79,905$ 79,905$ 64,045$ 15,860$ 64,687$ Total mosquito control 79,905 79,905 64,045 15,860 64,687 Buildings and grounds Personnel 259,960 248,715 141,462 107,253 114,507 Materials and supplies 48,660 48,660 44,544 4,116 39,744 Operation and contractual 280,155 291,400 283,454 7,946 267,007 Capital - - - - - Total buildings and grounds 588,775 588,775 469,460 119,315 421,258 Forestry Personnel 15,330 15,330 10,815 4,515 3,753 Materials and supplies 3,640 3,640 1,240 2,400 338 Operation and contractual 306,170 306,170 216,122 90,048 218,904 Total forestry 325,140 325,140 228,177 96,963 222,995 Total public works 993,820 993,820 761,682 232,138 708,940 CULTURE AND RECREATION Personnel Personnel 267,195 279,300 279,158 142 290,715 Materials and supplies 15,940 15,940 15,313 627 10,584 Operation and contractual 82,435 74,360 72,556 1,804 74,860 Total library general operations 365,570 369,600 367,027 2,573 376,159 Personnel Personnel 100,085 100,085 98,634 1,451 96,529 Materials and supplies 3,300 3,300 3,300 - 3,300 Operation and contractual 3,740 3,740 3,633 107 6,414 Total library technical services 107,125 107,125 105,567 1,558 106,243 Personnel Personnel 161,565 161,565 154,642 6,923 152,085 Materials and supplies 102,400 102,400 101,436 964 100,475 Operation and contractual 3,000 3,000 2,994 6 2,000 Total library reference and adult services 266,965 266,965 259,072 7,893 254,560 Personnel Personnel 115,085 115,085 111,644 3,441 106,475 Materials and supplies 30,850 30,850 30,577 273 27,964 Operation and contractual 4,250 4,250 4,248 2 3,491 - - - - - Total library youth services 150,185 150,185 146,469 3,716 137,930 Total culture and recreation 889,845 893,875 878,135 15,740 874,892 DEBT SERVICE Principal 185,000 185,000 - 185,000 280,000 Interest and fiscal charges 78,350 78,350 - 78,350 9,800 Total debt service 263,350 263,350 - 263,350 289,800 Total expenditures 25,438,140$ 25,606,638$ 24,799,607$ 807,031$ 22,744,580$ N O N M A J O R G O V E R N M E N T A L F U N D S N O N M A J O R G O V E R N M E N T A L F U N D S SPECIAL REVENUE FUNDS Motor Fuel Tax Fund –to account for state gasoline tax allocations restricted for local roadway program expenditures. Foreign Fire Insurance Tax Fund –to account for foreign fire insurance tax revenue restricted for the purchase of items for the benefit of the fire department. VILLAGE OF OAK BROOK COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS As of December 31, 2018 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds ASSETS Cash and investments $779,844 $259,393 $1,039,237 Receivables Allotments 17,122 -17,122 Accrued interest 957 -957 Prepaid items -775 775 TOTAL ASSETS $797,923 $260,168 $1,058,091 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Fund Balances Nonspendable for prepaid items -775 775 Restricted for highways and streets 797,923 -797,923 Restricted for fire department -259,393 259,393 Total Fund Balances 797,923 260,168 1,058,091 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $797,923 $260,168 $1,058,091 Page 106 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2018 Special Revenue Motor Fuel Tax Foreign Fire Insurance Total Nonmajor Governmental Funds REVENUES Intergovernmental $201,771 $54,708 $256,479 Investment income 14,392 67 14,459 Fines, forfeitures and penalties 496 -496 Miscellaneous revenues -2,095 2,095 Total Revenues 216,659 56,870 273,529 EXPENDITURES Current Public safety -41,531 41,531 Total Expenditures -41,531 41,531 Excess (deficiency) of revenues over expenditures 216,659 15,339 231,998 OTHER FINANCING USES Transfers out (7,790)-(7,790) Total Other Financing Uses (7,790)-(7,790) Net Change in Fund Balances 208,869 15,339 224,208 FUND BALANCES - Beginning of Year 589,054 244,829 833,883 FUND BALANCES - END OF YEAR $797,923 $260,168 $1,058,091 Page 107 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX FUND - NONMAJOR SPECIAL REVENUE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual REVENUES Intergovernmental $204,160 $204,160 $201,771 $(2,389)$201,068 Fines, forfeitures and penalties --496 496 - Investment income 6,000 6,000 14,392 8,392 9,055 Total Revenues 210,160 210,160 216,659 6,499 210,123 EXPENDITURES Total Expenditures ----- Excess (deficiency) of revenues over (under) expenditures 210,160 210,160 216,659 6,499 210,123 OTHER FINANCING SOURCES (USES) Transfers out (500,000)(500,000)(7,790)492,210 (548,454) Total Other Financing Sources (Uses)(500,000)(500,000)(7,790)492,210 (548,454) Net Change in Fund Balance $(289,840)$(289,840)208,869 $498,709 (338,331) FUND BALANCE - Beginning of Year 589,054 927,385 FUND BALANCE - END OF YEAR $797,923 $589,054 Page 108 M A J O R G O V E R N M E N T A L F U N D S Infrastructure Fund –to account for revenues restricted for and expenditures relative to the construction and maintenance of roadways, drainage and safety pathway sys tems. Promenade TIF Fund –to account for the revenues and expenditures restricted to the Tax Increment Financing District located at 22nd Street and Meyers Road. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual REVENUES Intergovernmental - grants $-$-$-$-$3,142 Non-home rule sales tax 5,563,000 5,563,000 5,691,536 128,536 5,581,924 Investment income 42,000 42,000 173,890 131,890 67,434 Miscellaneous revenues 5,000 5,000 2,729 (2,271)5,745 Total Revenues 5,610,000 5,610,000 5,868,155 258,155 5,658,245 EXPENDITURES GENERAL GOVERNMENT Geographic information systems Personnel 19,850 19,850 18,824 1,026 17,876 Materials and supplies 1,700 1,700 118 1,582 2,408 Operation and contractual 156,980 156,980 147,288 9,692 144,644 Total geographic information systems 178,530 178,530 166,230 12,300 164,928 Total General Government 178,530 178,530 166,230 12,300 164,928 PUBLIC WORKS Management Personnel 426,710 426,710 398,055 28,655 406,346 Materials and supplies 5,425 5,425 5,393 32 2,083 Operation and contractual 164,360 164,360 97,168 67,192 235,936 Total management $596,495 $596,495 $500,616 $95,879 $644,365 Page 109 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual Streets - general salaries Personnel $726,875 $726,875 $630,952 $95,923 $654,964 Materials and supplies 4,480 4,480 4,117 363 4,646 Operation and contractual 3,050 3,050 1,826 1,224 3,233 Total streets - general salaries 734,405 734,405 636,895 97,510 662,843 Streets and traffic maintenance Materials and supplies 81,775 81,775 60,092 21,683 24,811 Operation and contractual 429,200 429,200 413,903 15,297 422,003 Capital ----8,792 Total streets and traffic maintenance 510,975 510,975 473,995 36,980 455,606 Snow removal Personnel 98,725 98,725 49,424 49,301 15,303 Materials and supplies 53,975 60,315 60,122 193 41,540 Operation and contractual 49,300 42,960 39,535 3,425 77,835 Capital ----24,680 Total snow removal 202,000 202,000 149,081 52,919 159,358 Drainage maintenance Materials and supplies 22,000 22,000 12,257 9,743 13,352 Operation and contractual 83,675 83,675 64,186 19,489 111,868 Capital 238,500 238,500 164,504 73,996 13,487 Total drainage maintenance 344,175 344,175 240,947 103,228 138,707 Page 110 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual Safe pathway maintenance Materials and supplies $12,000 $12,000 $7,705 $4,295 $2,623 Operation and contractual 27,420 27,420 17,270 10,150 37,940 Total safe pathway maintenance 39,420 39,420 24,975 14,445 40,563 Engineering and capital projects engineering Personnel 93,285 93,285 88,702 4,583 68,602 Materials and supplies 1,600 1,600 55 1,545 282 Operation and contractual 170,770 343,935 343,933 2 287,047 Total engineering and capital projects engineering 265,655 438,820 432,690 6,130 355,931 Roadway improvements Operation and contractual 400,000 235,550 235,546 4 224,792 Intergovernmental agreements 5,387,120 5,378,405 3,325,168 2,053,237 395,833 Total roadway improvements 5,787,120 5,613,955 3,560,714 2,053,241 620,625 Reimbursements from other funds Reimbursement s from other funds (181,130)(181,130)(181,130)-(176,635) Expenditure reimbursemen t paid to other funds 164,865 164,865 164,865 -162,500 Total reimburse ments from other funds (16,265)(16,265)(16,265)-(14,135) Page 111 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - INFRASTRUCTURE FUND - MAJOR CAPITAL PROJECTS FUND (Continued) For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual Total Public Works $8,463,980 $8,463,980 $6,003,648 $2,460,332 $3,063,863 Total Expenditures 8,642,510 8,642,510 6,169,878 2,472,632 3,228,791 Excess (deficiency) of revenues over (under) expenditures (3,032,510)(3,032,510)(301,723)2,730,787 2,429,454 OTHER FINANCING SOURCES (USES) Transfers in 500,000 500,000 7,790 (492,210)548,454 Total Other Financing Sources (Uses)500,000 500,000 7,790 (492,210)548,454 Net Change in Fund Balance $(2,532,510)$(2,532,510)(293,933)$2,238,577 2,977,908 FUND BALANCE - Beginning of Year 9,743,910 6,766,002 FUND BALANCE - END OF YEAR $9,449,977 $9,743,910 Page 112 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - PROMENADE TIF FUND - MAJOR CAPITAL PROJECTS FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual REVENUES TAXES Municipal sales tax $102,500 $102,500 $99,477 $(3,023)$99,281 Property taxes 385,000 385,000 373,267 (11,733)385,018 Investment income 250 250 1,975 1,725 925 Total Revenues 487,750 487,750 474,719 (13,031)485,224 EXPENDITURES Current General government 4,090 4,090 3,578 512 3,958 Debt service Principal 197,000 227,000 227,000 -177,000 Interest and fiscal charges 262,820 262,820 262,820 -277,380 Total Expenditures 463,910 493,910 493,398 512 458,338 Net Change in Fund Balance $23,840 $(6,160)(18,679)$(12,519)26,886 FUND BALANCE - Beginning of Year 276,164 249,278 FUND BALANCE - END OF YEAR $257,485 $276,164 Page 113 P R O P R I E T A R Y F U N D S M A J O R E N T E R P R I S E F U N D S 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 SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL WATERW ORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual OPERATING REVENUES Charges for services Water sales $9,730,425 $9,730,425 $9,517,554 $(212,871)$9,477,096 Unmetered sales 30,000 30,000 37,062 7,062 50,422 Water tap on charges 50,000 50,000 117,134 67,134 187,680 Meter fees and special services 60,000 60,000 44,380 (15,620)53,551 Miscellaneous 57,000 57,000 102,128 45,128 103,252 Total Operating Revenues 9,927,425 9,927,425 9,818,258 (109,167)9,872,001 OPERATING EXPENSES Operation of facilities 10,789,755 10,789,755 8,275,397 (2,514,358)7,325,897 Depreciation and amortization --517,190 517,190 551,415 Total Operating Expenses 10,789,755 10,789,755 8,792,587 (1,997,168)7,877,312 Operating income (862,330)(862,330)1,025,671 1,888,001 1,994,689 NON-OPERATING REVENUES (EXPENSES) Investment income 10,000 10,000 97,388 87,388 41,152 Grants ----3,386 Total Non-Operating Revenues (Expenses)10,000 10,000 97,388 87,388 44,538 Change in net position $(852,330)$(852,330)1,123,059 $1,975,389 2,039,227 NET POSITION - Beginning of Year, as previously reported 23,466,260 21,427,033 Restatement of beginning of year net position (162,922)- NET POSITION - Beginning of Year (as restated)23,303,338 21,427,033 NET POSITION - END OF YEAR $24,426,397 $23,466,260 Page 114 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - WATERWORKS SYSTEM FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operation of facilities Public works - water operations Personnel 817,490$ 776,915$ 724,292$ 52,623$ 767,512$ Materials and supplies 76,860 1,922,540 1,909,232 13,308 487,637 Operation and contractual 6,780,015 6,826,800 5,288,705 1,538,095 5,566,987 Reimbursements to other funds 405,170 405,170 405,170 - 401,600 Total public works - water operations 8,079,535 9,931,425 8,327,399 1,604,026 7,223,736 Capital improvements Capital outlay 2,710,220 858,330 114,314 744,016 57,700 Total capital improvements 2,710,220 858,330 114,314 744,016 57,700 Total operating expenses excluding depreciation and pension expense - Budgetary basis 10,789,755$ 10,789,755$ 8,441,713 2,348,042$ 7,281,436 Adjustments to GAAP Basis Capital expenditures (114,314) (57,700) Pension expense - IMRF (49,485) 84,684 OPEB expense (2,517) 17,477 Depreciation and amortization 517,190 551,415 Total adjustments to GAAP basis 350,874 595,876 Total operating expenses 8,792,587$ 7,877,312$ 2018 Budgeted Amounts Page 115 MAJOR ENTERPRISE FUND With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual Revenues Charges for services Golf 2,097,650$ 2,097,650$ 1,934,913$ (162,737)$ 1,984,230$ Swimming and tennis 327,075 327,075 283,259 (43,816) 332,555 Special events 185,000 185,000 185,918 918 188,375 Rentals and commissions 387,500 387,500 461,266 73,766 462,458 Food and beverage 381,500 381,500 386,514 5,014 446,193 Total operating revenues 3,378,725 3,378,725 3,251,870 (126,855) 3,413,811 Operating expenses including depreciation Golf club 1,822,570 2,110,635 1,939,158 171,477 1,833,899 Swimming and tennis 568,070 486,800 571,811 (85,011) 516,686 Special events 190,000 200,240 200,237 3 172,830 Rentals and commissions 467,565 716,665 440,324 276,341 602,075 Food and beverage 315,775 325,490 334,889 (9,399) 387,967 Total operating expenses 3,363,980 3,839,830 3,486,419 353,411 3,513,457 Operating income (loss)14,745 (461,105) (234,549) (480,266) (99,646) Non-operating revenues (expenses) Gain (loss) on disposal of capital assets - - (59,701) 59,701 (1,088) Total non-operating revenues (expenses)- - (59,701) 59,701 (1,088) Net income (loss) before transfers 14,745 (461,105) (294,250) (420,565) (100,734) Transfers Transfers in - 285,500 234,088 (51,412) - Transfers out - - - - (431,457) Total Other Financing Sources (Uses) - 285,500 234,088 (51,412) (431,457) Change in net position 14,745$ (175,605)$ (60,162) (471,977)$ (532,191) NET POSITION - Beginning of Year (as previously reported) 11,809,988 12,342,179 Restatement of beginning of year net position (161,196) - NET POSITION - Beginning of Year (as restated)11,648,792 12,342,179 NET POSITION - END OF YEAR 11,588,630$ 11,809,988$ VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 31, 2018 2018 Budgeted Amount Page 116 Page 117 MAJOR ENTERPRISE FUND W ith Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual Charges for Services Golf Fees 1,625,650$ 1,625,650$ 1,462,441$ (163,209)$ 1,586,257$ Golf surcharge - - - - - Memberships 191,500 191,500 205,300 13,800 189,963 Merchandise sales 205,500 205,500 196,026 (9,474) 193,986 Butler range rental 75,000 75,000 70,000 (5,000) Miscellaneous - - 1,146 1,146 14,024 Total golf 2,097,650 2,097,650 1,934,913 (162,737) 1,984,230 Swimming and tennis Fees 100,700 100,700 51,029 (49,671) 105,522 Memberships 223,375 223,375 229,374 5,999 225,190 Merchandise sales - - 333 333 - Miscellaneous 3,000 3,000 2,523 (477) 1,843 Total swimming and tennis 327,075 327,075 283,259 (43,816) 332,555 Special events Independence Day/Taste of Oak Brook 185,000 185,000 185,918 918 188,375 Total special events 185,000 185,000 185,918 918 188,375 Rentals and commissions Open field rental 200,000 200,000 201,085 1,085 268,258 Other rental income 187,500 187,500 260,181 72,681 194,200 Total rentals and commissions 387,500 387,500 461,266 73,766 462,458 Food and beverage Food sales 145,500 145,500 157,330 11,830 177,514 Beverage sales 236,000 236,000 229,184 (6,816) 268,679 Total food and beverage 381,500 381,500 386,514 5,014 446,193 Total Operating Revenues 3,378,725$ 3,378,725$ 3,251,870$ (126,855)$ 3,413,811$ VILLAGE OF OAK BROOK SCHEDULE OF OPERATING REVENUES - BUDGET AND ACTUAL - SPORTS CORE FUND - For the Year Ended December 31, 2018 2018 Budgeted Amounts Page 118 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual Operating expenses excluding depreciation and pension expense Operations - golf club Golf club general operations Personnel 512,875$ 471,800$ 472,214$ (414)$ 475,424$ Materials and supplies 177,255 177,675 177,131 544 161,486 Operation and contractual 182,925 184,970 185,099 (129) 218,479 Capital 65,000 259,145 259,142 3 19,083 Total golf club general operations 938,055 1,093,590 1,093,586 4 874,472 Golf club range operations Personnel 67,395 57,445 55,007 2,438 77,720 Materials and supplies 17,000 17,000 19,579 (2,579) 11,243 Operation and contractual 14,200 14,200 14,058 142 14,077 Capital - - - - 8,526 Total golf club range operations 98,595 88,645 88,644 1 111,566 Golf cart operations Personnel 24,760 51,625 53,384 (1,759) 51,715 Materials and supplies 1,400 1,400 343 1,057 4,437 Operation and contractual 6,000 52,480 51,778 702 6,054 Capital 40,910 53,975 53,972 3 - Debt service 49,575 - - - - Total golf cart operations 122,645 159,480 159,477 3 62,206 Golf course maintenance Personnel 484,625 550,330 552,494 (2,164) 468,748 Materials and supplies 209,800 219,475 214,592 4,883 209,734 Operation and contractual 38,900 97,265 98,960 (1,695) 46,781 Capital 80,000 80,000 81,021 (1,021) 28,458 Total golf course maintenance 813,325 947,070 947,067 3 753,721 Reimbursements to other funds 28,100 - - - - Less reimbursement from other funds (178,150) (178,150) (178,150) - (186,200) Total operations - golf club 1,822,570 2,110,635 2,110,624 11 1,615,765 Operations - swimming and tennis General operations Personnel 155,600 101,135 101,375 (240) 163,808 Materials and supplies 12,580 4,290 6,533 (2,243) 21,391 Operation and contractual 118,540 74,435 71,948 2,487 123,735 Capital 15,000 38,845 38,845 - - Subtotal general operations 301,720 218,705 218,701 4 308,934 Reimbursements to other funds 56,200 - - - - Less reimbursement from other funds (32,000) (32,000) (32,000) - (32,000) Less overhead allocation (325,920) (325,920) (187,855) (138,065) (330,092) Total general operations - (139,215) (1,154) (138,061) (53,158) 2018 Budgeted Amounts Page 119 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual 2018 Budgeted Amounts Operating expenses excluding depreciation and pension expense (continued) Swimming operations Personnel 37,680$ 21,345$ 20,179$ 1,166$ 36,822$ Materials and supplies 12,000 14,005 12,729 1,276 42,030 Operation and contractual 179,520 287,600 290,343 (2,743) 171,564 Capital 149,750 46,285 45,980 305 - Overhead allocation 117,335 117,335 67,627 49,708 118,833 Total swimming operations 496,285 486,570 436,858 49,712 369,249 Tennis operations - outdoor Personnel 2,695 32,865 32,857 8 21,906 Materials and supplies 2,000 2,000 2,075 (75) 4,042 Operation and contractual 34,500 71,990 71,600 390 34,529 Overhead allocation 32,590 32,590 18,785 13,805 33,009 Total tennis operations - outdoor 71,785 139,445 125,317 14,128 93,486 Total operations - swimming and tennis 568,070 486,800 561,021 (74,221) 409,577 Special events Operation and contractual 190,000 200,240 200,237 3 172,830 Total special events 190,000 200,240 200,237 3 172,830 Rentals and commissions Personnel 100,305 127,990 129,328 (1,338) 101,959 Materials and supplies 7,200 15,700 15,678 22 31,481 Operation and contractual 182,100 196,675 195,405 1,270 291,142 Capital 15,000 213,340 213,207 133 45,725 Overhead allocation 162,960 162,960 93,927 69,033 165,046 Total rentals and commissions 467,565 716,665 647,545 69,120 635,353 Food and beverage Poolside grill Personnel - 23,820 24,004 (184) 19,790 Materials and supplies 650 16,825 16,059 766 55,015 Operation and contractual 2,750 770 1,272 (502) 2,122 Overhead allocation 13,035 13,035 7,515 5,520 13,204 Total poolside grill 16,435 54,450 48,850 5,600 90,131 Golf clubhouse Personnel 111,265 111,695 112,687 (992) 113,936 Materials and supplies 176,000 149,890 151,243 (1,353) 160,539 Operation and contractual 12,075 9,455 7,107 2,348 7,437 Total golf clubhouse 299,340 271,040 271,037 3 281,912 Total food and beverage 315,775 325,490 319,887 5,603 372,043 Page 120 VILLAGE OF OAK BROOK SCHEDULE OF OPERATING EXPENSES - BUDGET AND ACTUAL - SPORTS CORE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Variance With 2017 Original Final Actual Final Budget Actual 2018 Budgeted Amounts Total operating expenses - budgetary basis 3,363,980$ 3,839,830$ 3,839,314 516$ 3,205,568 Adjustments to GAAP basis Capital expenditures (692,167) (101,792) Depreciation expense - golf 173,658 193,872 Depreciation expense - swimming and tennis 94,463 93,384 Depreciation expense - food and beverage 14,004 11,235 Pension expense - IMRF 14,214 72,912 OPEB expense 42,933 38,278 Total adjustments to GAAP basis (352,895) 307,889 Total Operating Expenses 3,486,419$ 3,513,457$ N O N M A J O R E N T E R P R I S E F U N D Golf Surcharge Fund –to account for revenue collected related to the $3 surcharge on each golf round played. Funds are accumulated in this fund and used on golf course improvements. VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL GOLF SURCHARGE FUND - MAJOR ENTERPRISE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual OPERATING REVENUES Charges for services $120,000 $120,000 $106,267 $(13,733)$119,400 Total Operating Revenues 120,000 120,000 106,267 (13,733)119,400 OPERATING EXPENSES Total Operating Expenses ----- Operating income 120,000 120,000 106,267 (13,733)119,400 NON-OPERATING REVENUES (EXPENSES) Investment income 3,500 3,500 10,620 7,120 5,013 Total Non-Operating Revenues (Expenses)3,500 3,500 10,620 7,120 5,013 TRANSFERS Transfers in ----431,457 Transfers out -(285,500)(234,088)51,412 - Net Transfers -(285,500)(234,088)51,412 431,457 Change in net position $123,500 $(162,000)(117,201)$58,025 555,870 NET POSITION - Beginning of Year 555,870 - NET POSITION - END OF YEAR $438,669 $555,870 Page 121 I N T E R N A L S E R V I C E F U N D S 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 expenses relative to the replacement of major capital equipment, primarily vehicles. VILLAGE OF OAK BROOK COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS As of December 31, 2018 Self-Insurance Garage Capital Replacement Totals ASSETS Current Assets Cash and investments $468,568 $331,134 $1,622,866 $2,422,568 Receivables Accrued interest --5,423 5,423 Other 77,577 796 -78,373 Inventories -51,836 -51,836 Prepaid items 46,327 -268,877 315,204 Total Current Assets 592,472 383,766 1,897,166 2,873,404 Noncurrent Assets Capital assets Capital assets, net of accumulated depreciation -76,028 3,818,331 3,894,359 Total Noncurrent Assets -76,028 3,818,331 3,894,359 Total Assets 592,472 459,794 5,715,497 6,767,763 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - IMRF -17,928 -17,928 Deferred outflows related to OPEB -547 -547 Total Deferred Outflows of Resources -18,475 -18,475 LIABILITIES Current Liabilities Accounts payable 236,210 22,997 833 260,040 Accrued payroll -6,613 -6,613 Compensated absences payable -8,819 -8,819 Unearned revenues 33,310 --33,310 Claims payable 143,349 --143,349 Total Current Liabilities 412,869 38,429 833 452,131 Noncurrent Liabilities Net pension liability - IMRF -16,202 -16,202 Total other post employment benefits liability -44,319 -44,319 Lease obligations --61,509 61,509 Total Noncurrent Liabilities -60,521 61,509 122,030 Total Liabilities 412,869 98,950 62,342 574,161 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions - IMRF -69,692 -69,692 Deferred inflows related to OPEB -2,173 -2,173 Total Deferred Inflows of Resources -71,865 -71,865 NET POSITION Investment in capital assets -76,028 3,818,331 3,894,359 Unrestricted 179,603 231,426 1,834,824 2,245,853 TOTAL NET POSITION $179,603 $307,454 $5,653,155 $6,140,212 Page 122 VILLAGE OF OAK BROOK COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Self-Insurance Garage Capital Replacement Totals OPERATING REVENUES Charges for services $3,197,936 $611,798 $340,940 $4,150,674 Total Operating Revenues 3,197,936 611,798 340,940 4,150,674 OPERATING EXPENSES Claims and insurance 2,974,394 --2,974,394 Operation of facilities -717,717 -717,717 Miscellaneous --18,972 18,972 Depreciation and amortization -16,919 616,755 633,674 Total Operating Expenses 2,974,394 734,636 635,727 4,344,757 Operating Income (Loss)223,542 (122,838)(294,787)(194,083) NONOPERATING REVENUES (EXPENSES) Investment income 5,935 7,133 29,768 42,836 Gain (loss) on disposal of capital assets --89,225 89,225 Total Nonoperating Revenues (Expenses)5,935 7,133 118,993 132,061 Change in net position 229,477 (115,705)(175,794)(62,022) NET POSITION (DEFICIT) - Beginning of Year (as restated)(49,874)423,159 5,828,949 6,202,234 NET POSITION - END OF YEAR $179,603 $307,454 $5,653,155 $6,140,212 Page 123 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CASH FLOW S INTERNAL SERVICE FUNDS For the Year Ended December 31, 2018 Self-Insurance Garage Capital Replacement Totals CASH FLOWS FROM OPERATING AC TIVITIES Received from customers $1,084,647 $-$-$1,084,647 Receipts from internal service transactions 2,115,564 611,690 340,940 3,068,194 Payments to suppliers (2,782,620)(570,850)(82,662)(3,436,132) Payments to employees -(144,248)-(144,248) Net Cash Flows From Operating Activities 417,591 (103,408)258,278 572,461 CASH FLOWS FROM INVESTING AC TIVITIES Investments sold and matured --59,348 59,348 Investment income 5,935 7,133 32,589 45,657 Purchase of investments --(168,781)(168,781) Net Cash Flows From Investing Activities 5,935 7,133 (76,844)(63,776) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets --(312,088)(312,088) Proceeds from sale of capital assets --(89,225)(89,225) Net Cash Flows From Capital and Related Financing Activities --(401,313)(401,313) Net Change in Cash and Cash Equivalents 423,526 (96,275)(219,879)107,372 CASH AND CASH EQUIVALENTS - Beginning of Year 45,042 427,409 847,178 1,319,629 CASH AND CASH EQUIVALENTS - END OF YEAR $468,568 $331,134 $627,299 $1,427,001 Page 124 Self-Insurance Garage Capital Replacement Totals RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss)$223,542 $(122,838)$(294,787)$(194,083) Adjustments to Reconcile Operating Income (Loss) to Net Cash Flows From Operating Activities Depreciation -16,919 616,755 633,674 Changes in assets and liabilities Accounts receivable 1,842 (108)-1,734 Prepaid items 20,045 --20,045 Inventories -(8,978)-(8,978) Deferred outflows - pensions -26,992 -26,992 Deferred outflows - OPEB -95 -95 Accounts payable 231,134 (8,256)(63,690)159,188 Claims payable (57,548)--(57,548) Accrued salaries (1,857)529 -(1,328) Compensated absences payable -(814)-(814) Other postemployment benefits payable -(462)-(462) Net pension liability -(71,636)-(71,636) Deferred inflows - pensions -65,524 -65,524 Deferred inflows - OPEB -(375)-(375) Unearned revenues 433 --433 NET CASH FLOWS FROM OPERATING ACTIVITIES $417,591 $(103,408)$258,278 $572,461 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE STATEMENT OF NET POSITION Cash and cash equivalents $468,568 $331,134 $627,299 $1,427,001 Investments --995,567 995,567 Total Cash and investments $468,568 $331,134 $1,622,866 $2,422,568 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES None Page 125 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL SELF-INSURANCE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 2018 Budgeted Amounts Original Final Actual Variance with Final Budget 2017 Actual OPERATING REVENUES Charges for services $3,256,830 $3,256,830 $3,197,936 $(58,894)$3,143,647 Total Operating Revenues 3,256,830 3,256,830 3,197,936 (58,894)3,143,647 OPERATING EXPENSES Claims and insurance Insurance and administration 1,092,920 1,246,330 1,149,233 97,097 1,074,002 Health claims 2,225,000 2,071,590 1,825,161 246,429 2,452,717 Total Operating Expenses 3,317,920 3,317,920 2,974,394 343,526 3,526,719 Operating Income (Loss)(61,090)(61,090)223,542 284,632 (383,072) NON-OPERATING REVENUES (EXPENSES) Investment income 2,500 2,500 5,935 3,435 4,066 Miscellaneous revenues ----2,840 Total Non-Operating Revenues (Expenses)2,500 2,500 5,935 3,435 6,906 Change in net position $(58,590)$(58,590)229,477 $288,067 (376,166) NET POSITION - Beginning of Year (49,874)326,292 NET POSITION - END OF YEAR $179,603 $(49,874) Page 126 Page 127 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL - GARAGE FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Budgeted Amounts Variance With 2017 Original Final Actual Final Budget Actual Operating Revenues Charges for services 611,730$ 611,730$ 611,798$ 68$ 744,972$ Total Revenues 611,730 611,730 611,798 68 744,972 Operating Expenses Excluding Depreciation Garage operations Personnel 229,010 229,010 201,549 27,461 139,591 Materials and supplies 224,040 227,760 180,848 46,912 142,914 Operation and contractual 302,840 299,120 273,892 25,228 315,499 Expenditure reimbursement paid to other fund 41,290 41,290 41,290 - 40,135 Capital - - - - - Total operating expenses excluding depreciation 797,180 797,180 697,579 99,601 638,139 Operating Income (Loss)(185,450) (185,450) (85,781) 99,669 106,833 Non-Operating Revenues (Expenses) Investment income 1,000 1,000 7,133 979 3,288 Total non-operating revenues (expenses)1,000 1,000 7,133 979 3,288 Change in Net Position - Budgetary Basis (184,450)$ (184,450)$ (78,648) 100,648$ 110,121 Adjustments to GAAP Basis Pension expense - IMRF (20,880) (9,746) OPEB expense 742 (5,203) Depreciation and amortization (16,919) (16,919) Total adjustments to GAAP basis (37,057) (31,868) Change in Net Position - GAAP basis (115,705) 78,253 NET POSITION - Beginning of Year (as previously reported)457,087 378,834 Restatement of beginning of year net position (33,928) - NET POSITION - Beginning of Year (as restated)423,159 378,834 NET POSITION - END OF YEAR 307,454$ 457,087$ 2018 Page 128 VILLAGE OF OAK BROOK SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - BUDGET AND ACTUAL CAPITAL REPLACEMENT FUND - INTERNAL SERVICE FUND For the Year Ended December 31, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Budgeted Amounts Variance With 2017 Original Final Actual Final Budget Actual Operating Revenues Charges for services 340,940$ 340,940$ 340,940$ -$ 605,330$ Intergovernmental - - - - 148,929 Total Revenues 340,940 340,940 340,940 - 754,259 Operating Expenses Excluding Depreciation Capital expenditures 614,205 640,860 302,088 338,772 1,232,167 Miscellaneous - 18,975 18,972 3 84,000 Total operating expenses excluding depreciation 614,205 659,835 321,060 338,775 1,316,167 Operating Income (Loss)(273,265) (318,895) 19,880 943,711 (561,908) Non-Operating Revenues (Expenses) Gain (loss) on disposal of capital assets 50,000 50,000 89,225 (39,225) 27,788 Investment income 12,000 12,000 29,768 (17,768) 18,167 Total non-operating revenues (expenses)62,000 62,000 118,993 (56,993) 45,955 Change in Net Position - Budgetary Basis (211,265)$ (256,895)$ 138,873 886,718$ (515,953) Adjustments to GAAP Basis Capital expenditures (302,088) 1,232,167 Depreciation and amortization 616,755 (607,821) Total adjustments to GAAP basis 314,667 624,346 Change in Net Position - GAAP basis (175,794) 108,393 NET POSITION - Beginning of Year 5,828,949 5,720,556 NET POSITION - END OF YEAR 5,653,155$ 5,828,949$ 2018 F I D U C I A R Y F U N D S P E N S I O N T R U S T F U N D S 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. Firefighter’s 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 COMBINING STATEMENT OF FIDUCIARY NET POSITION PENSION TRUST FUNDS As of December 31, 2018 Police Pension Firefighters' Pension Totals ASSETS Cash $113,281 $613,553 $726,834 Investments Certificates of deposit 616,104 248,274 864,378 Money markets 1,507,606 25,050 1,532,656 U.S. treasuries 224,911 897,202 1,122,113 U.S. agencies 4,878,371 6,395,094 11,273,465 State and local obligations 1,066,231 1,482,362 2,548,593 Corporate bonds 4,791,935 1,719,379 6,511,314 Mutual funds 21,855,588 14,959,740 36,815,328 Accrued interest 118,926 75,790 194,716 Prepaid items 3,202 1,469 4,671 Total Assets 35,176,155 26,417,913 61,594,068 LIABILITIES Accounts payable 11,511 16,744 28,255 Total Liabilities 11,511 16,744 28,255 NET POSITION Restricted for pension benefits $35,164,644 $26,401,169 $61,565,813 Page 129 VILLAGE OF OAK BROOK COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION TRUST FUNDS For the Year Ended December 31, 2018 Police Pension Firefighters' Pension Total AD DITIONS Contributions Employer $1,946,714 $2,064,689 $4,011,403 Employee 391,382 300,087 691,469 Other 18,953 -18,953 Total Contributions 2,357,049 2,364,776 4,721,825 Investment income Net appreciation in fair value (4,664,191)(2,426,049)(7,090,240) Interest 2,353,246 1,226,212 3,579,458 Total Investment Income (2,310,945)(1,199,837)(3,510,782) Less Investment expense 74,705 55,650 130,355 Net Investment Income (2,385,650)(1,255,487)(3,641,137) Total Additions (28,601)1,109,289 1,080,688 DEDUCTIONS Benefits and refunds 2,531,903 2,756,038 5,287,941 Administrative 54,668 45,571 100,239 Total Deductions 2,586,571 2,801,609 5,388,180 Net Decrease in Net Position (2,615,172)(1,692,320)(4,307,492) NET POSITION - Beginning of Year 37,779,816 28,093,489 65,873,305 NET POSITION, END OF YEAR $35,164,644 $26,401,169 $61,565,813 Page 130 S T A T I S T I C A L S E C T I O N Statistical Section This part of the Village's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, not disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time.131 - 140 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate it's property and sales taxes.141 - 147 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future.148 - 152 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place and to help make comparisons over time and with other governments.153 - 166 Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's financial information relates to the services the Village provides and the activities it performs.167 - 170 Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Page 131 2009 2010 2011 2012 Governmental Activities Net Investment in Capital Assets 60.6$ 55.3$ 56.2$ 57.6$ Restricted - 3.5 9.4 9.4 Unrestricted 16.9 17.4 13.7 14.0 77.5$ 76.2$ 79.3$ 81.0$ Business-type Activities Net Investment in Capital Assets 24.5$ 26.5$ 28.5$ 30.0$ Unrestricted 5.5 3.6 1.8 1.2 Total Business-type Activities 30.0$ 30.1$ 30.3$ 31.2$ Primary Government Net Investment in Capital Assets 85.1$ 81.8$ 84.7$ 87.6$ Restricted - 3.5 9.4 9.4 Unrestricted 22.4 21.0 15.5 15.2 Total Primary Government 107.5$ 106.3$ 109.6$ 112.2$ Data Source Audited Financial Statements Data in millions Note: The Village implemented GASB Statement No. 68 in 2015. Prior years have not been restated. VILLAGE OF OAK BROOK Net Position by Component Last Ten Fiscal Years Page 132 2013 2014 2015 2016 2017 2018 59.3$ 60.7$ 60.7$ 60.5$ 61.8$ 65.4$ 9.8 11.5 11.3 12.3 14.8 15.3 13.3 12.1 (27.2) (26.1) (27.1) (32.3) 82.4$ 84.3$ 44.8$ 46.7$ 49.5$ 48.4$ 29.6$ 30.6$ 31.3$ 30.6$ 29.9$ 29.8$ 4.6 3.7 2.2 3.9 6.6 7.3 34.2$ 34.3$ 33.5$ 34.5$ 36.5$ 37.1$ 88.9$ 91.3$ 92.0$ 91.1$ 91.7$ 95.2$ 9.8 11.5 11.3 12.3 14.8 15.3 17.9 15.8 (25.0) (22.2) (20.5) (25.0) 116.6$ 118.6$ 78.3$ 81.2$ 86.0$ 85.5$ Page 133 2009 2010 2011 2012 Expenses Governmental Activities General Government 5.3$ 3.9$ 4.2$ 3.7$ Public Safety 11.9 13.2 12.3 13.4 Public Works 11.9 4.4 4.9 6.1 Culture and Recreation 1.7 1.7 1.7 1.8 Interest on Long-Term Debt 0.1 0.4 0.4 0.4 Total Governmental Activities Expenses 30.9 23.6 23.5 25.4 Business-type Activities Water 4.0 4.5 4.9 5.6 Sports Core 3.5 3.1 3.1 3.3 Total Business-type Activities Expenses 7.5 7.6 8.0 8.9 Total Primary Government Expenses 38.4$ 31.2$ 31.5$ 34.3$ Program Revenues Governmental Activities Charges for Services General Government 1.1$ 1.4$ 1.1$ 1.6$ Public Safety 0.8 1.1 1.5 1.1 Other Activities 0.1 - - - Operating Grants and Contributions 0.3 0.3 0.3 0.3 Capital Grants - 0.7 0.7 - Total Governmental Activities Program Revenues 2.3 3.5 3.6 3.0 Business-type Activities Charges for Services W ater 4.0 5.1 5.3 6.7 Sports Core 3.3 2.5 2.9 3.2 Golf Surcharge - - - - Total Business-type Activities Program Revenues 7.3 7.6 8.2 9.9 Total Primary Government Program Revenues 9.6$ 11.1$ 11.8$ 12.9$ Net (Expense) Revenue Governmental Activities (28.6)$ (20.1)$ (19.9)$ (22.4)$ Business-type Activities (0.2) - 0.2 1.0 Total Primary Government Net (Expense) Revenue (28.8)$ (20.1)$ (19.7)$ (21.4)$ Last Ten Fiscal Years Change in Net Position VILLAGE OF OAK BROOK Page 134 2013 2014 2015 2016 2017 2018 4.3$ 4.5$ 5.3$ 4.7$ 5.7$ 5.5$ 13.7 14.7 24.6 17.2 17.4 18.9 4.8 4.9 7.7 6.4 3.8 5.0 1.8 2.0 1.5 1.5 1.7 1.7 0.4 0.3 0.3 0.3 0.3 0.3 25.0 26.4 39.4 30.1 28.9 31.4 6.3 7.0 8.0 7.9 7.9 8.8 3.4 3.6 3.7 3.4 3.5 3.5 9.7 10.6 11.7 11.3 11.4 12.3 34.7$ 37.0$ 51.1$ 41.4$ 40.3$ 43.7$ 2.1$ 1.9$ 1.8$ 2.1$ 2.6$ 4.5$ 1.1 1.2 1.2 1.3 1.3 1.5 - - - - - - 0.4 0.4 0.2 0.2 0.2 0.2 0.5 0.3 - - - - 4.1 3.8 3.2 3.6 4.1 6.2 6.9 7.0 7.7 8.8 9.9 9.8 3.2 3.1 3.2 3.4 3.4 3.2 - - - - 0.1 0.1 10.1 10.1 10.9 12.2 13.4 13.1 14.2$ 13.9$ 14.1$ 15.8$ 17.5$ 19.3$ (20.9)$ (22.6)$ (36.2)$ (26.5)$ (24.8)$ (25.2)$ 0.4 (0.5) (0.8) 0.9 2.0 0.8 (20.5)$ (23.1)$ (37.0)$ (25.6)$ (22.8)$ (24.4)$ Page 135 2009 2010 2011 2012 General Revenues and Other Changes in Net Position Governmental Activities Taxes Sales and Local Use Taxes 14.2$ 16.1$ 16.0$ 16.7$ Utility 4.9 4.7 4.7 4.9 Other 2.5 2.3 2.2 2.5 Investment Earnings 0.1 0.1 - - Miscellaneous - - - - Transfers - - - - Total Governmental Activities 21.7 23.2 22.9 24.1 Business-type Activities Investment Earnings - - - - Miscellaneous - (0.1) - - Transfers - - - Total Business-type Activities - (0.1) - - Total Primary Government 21.7$ 23.1$ 22.9$ 24.1$ Change in Net Position Governmental Activities (6.9)$ 3.1$ 3.0$ 1.7$ Business-type Activities (0.2) (0.1) 0.2 1.0 Total Primary Government Change in Net Position (7.1)$ 3.0$ 3.2$ 2.7$ Data Source Audited Financial Statements Data in millions VILLAGE OF OAK BROOK Change in Net Position Last Ten Fiscal Years Page 136 2013 2014 2015 2016 2017 2018 17.3$ 17.7$ 18.1$ 19.3$ 18.3$ 18.6$ 5.0 5.2 5.7 6.0 6.0 6.1 2.4 2.5 2.8 2.7 3.0 3.2 0.1 (0.2) 0.2 0.3 0.3 0.6 - - 0.2 - - - (0.2) (0.5) (0.5) - - - 24.6 24.7 26.5 28.3 27.6 28.5 - - - - - 0.1 - - - - - - 0.2 0.5 0.5 - - - 0.2 0.5 0.5 - - 0.1 24.8$ 25.2$ 27.0$ 28.3$ 27.6$ 28.6$ 3.7$ 2.1$ (9.7)$ 1.8$ 2.8$ 3.3$ 0.6 - (0.3) 0.9 2.0 0.9 4.3$ 2.1$ (10.0)$ 2.7$ 4.8$ 4.2$ Page 137 2009 2010 2011 2012 2013 2014 General Fund Reserved 1,495,000$ -$ -$ -$ -$ -$ Unreserved 10,787,853 - - - - - Nonspendable - 1,917,000 2,087,000 2,545,898 168,016 109,092 Unrestricted Committed - - 364,483 224,878 224,878 - Assigned - - - - 102,525 205,050 Unassigned - 11,708,050 13,532,992 14,772,181 15,902,982 15,799,127 Total General Fund 12,282,853$ 13,625,050$ 15,984,475$ 17,542,957$ 16,398,401$ 16,113,269$ Infrastructure Fund Unreserved 4,682,620$ -$ -$ -$ -$ -$ Nonspendable - 337,699 - - - - Restricted - 5,004,945 5,864,870 5,398,644 5,152,351 6,706,262 Total Infrastructure Fund 4,682,620$ 5,342,644$ 5,864,870$ 5,398,644$ 5,152,351$ 6,706,262$ All Other Governmental Funds Restricted -$ 3,672,971$ 3,451,553$ 3,924,483$ 4,560,128$ 4,826,298$ Unreserved, reported in Special Revenue Funds 2,986,576 - - - - - Capital Project Fund 225,075 - - - - - Nonspendable - - - - - 775 Total All Other Governmental Funds 3,211,651$ 3,672,971$ 3,451,553$ 3,924,483$ 4,560,128$ 4,827,073$ Data Source Audited Financial Statements Last Ten Fiscal Years Fund Balances of Governmental Funds VILLAGE OF OAK BROOK Page 138 2015 2016 2017 2018 -$ -$ -$ -$ - - - - 53,406 58,444 56,649 56,010 - - - - - - - - 17,206,014 20,014,100 20,998,025 21,697,317 17,259,420$ 20,072,544$ 21,054,674$ 21,753,327$ -$ -$ -$ -$ - - - - 5,791,896 6,766,002 9,743,910 9,449,977 5,791,896$ 6,766,002$ 9,743,910$ 9,449,977$ 5,504,093$ 5,673,352$ 5,068,576$ 5,905,692$ - - - - - - - - 775 - 775 775 5,504,868$ 5,673,352$ 5,069,351$ 5,906,467$ Page 139 2009 2010 2011 2012 2013 2014 Revenues Sales Tax Revenue 9,748,649$ 11,121,649$ 11,070,404$ 11,326,929$ 11,385,834$ 12,149,324$ Non-home Rule Sales Tax 4,410,438 4,833,425 4,833,972 5,230,137 5,171,232 5,384,857 Other Intergovernmental 1,771,733 2,545,066 2,411,395 1,841,378 2,530,416 2,274,102 Utility Taxes 4,922,115 4,669,414 4,657,683 4,900,869 5,047,306 5,203,835 Hotel/Motel Taxes 882,649 881,887 853,638 940,008 964,684 1,049,631 Licenses and Permits 741,380 843,139 948,872 1,201,998 1,686,269 1,448,471 Charges for Services 695,630 943,638 1,089,783 970,778 1,021,858 1,044,934 Fines and Penalties 313,395 229,246 248,120 231,865 184,959 189,060 Investment Income 80,345 110,837 31,018 47,363 86,287 (155,427) Miscellaneous 403,580 532,891 323,742 355,548 364,452 424,552 Total Revenues 23,969,914 26,711,192 26,468,627 27,046,873 28,443,297 29,013,339 Expenditures General Government 4,932,449 3,522,790 3,319,839 3,600,061 4,289,515 5,072,205 Public Safety 11,496,681 12,536,938 11,755,031 12,986,730 13,440,798 14,324,720 Public Works 10,458,211 4,036,771 4,698,190 4,706,731 4,457,705 4,937,146 Culture and Recreation 1,596,440 1,536,853 1,569,377 1,638,863 1,684,276 1,898,393 Capital Outlay 994,776 382,039 281,457 607,097 - - Debt Service 1,706,163 1,769,263 1,827,087 1,842,163 1,876,754 425,000 Interest and issuance costs 95,415 462,997 386,259 375,042 362,129 346,094 Total Expenditures 31,280,135 24,247,651 23,837,240 25,756,687 26,111,177 27,003,558 Excess of Revenues over (under) Expenditures (7,310,221) 2,463,541 2,631,387 1,290,186 2,332,120 2,009,781 Other Financing Sources (Uses) Transfers In - - - 275,000 - 156,840 Transfers Out - - - - (725,324) (630,897) Debt Issuance 9,788,606 - - - - - Debt Issuance premium 8,861 - - - - - Payment to refund bond escrow agent (2,250,850) - - - - - Sale of Capital Assets - - 28,846 - - - Total Other Financing Sources (Uses)7,546,617 - 28,846 275,000 (725,324) (474,057) Net Change in Fund Balances 236,396$ 2,463,541$ 2,660,233$ 1,565,186$ 1,606,796$ 1,535,724$ Debt Service as a percentage of Noncapital Expenditures 5.95%9.35%9.40%8.82%8.57%2.86% Data Source Audited Financial Statements VILLAGE OF OAK BROOK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Page 140 2015 2016 2017 2018 12,346,857$ 13,072,837$ 12,481,210$ 12,685,797$ 5,637,241 5,991,262 5,581,924 5,691,536 1,925,962 1,939,598 1,929,507 1,943,897 5,673,868 5,967,345 6,033,358 6,137,283 1,194,811 1,270,131 1,265,583 1,340,495 1,385,341 1,882,598 2,205,571 3,185,402 1,058,929 1,075,234 1,106,204 1,155,142 177,588 159,799 144,833 192,321 138,593 203,467 309,786 596,092 625,504 421,967 457,543 609,096 30,164,694 31,984,238 31,515,519 33,537,061 4,331,061 4,343,678 5,019,819 6,818,223 14,597,010 15,190,063 16,155,248 16,652,456 7,520,877 6,055,657 3,772,803 6,765,330 1,635,690 1,709,465 2,467,432 1,569,396 - - - - 384,913 420,000 457,000 227,000 326,465 309,761 287,180 262,820 28,796,016 28,028,624 28,159,482 32,295,225 1,368,678 3,955,614 3,356,037 1,241,836 - 516,221 548,454 7,790 (459,098) (516,221) (548,454) (7,790) - - - - - - - - - - - - - - - - (459,098) - - - 909,580$ 3,955,614$ 3,356,037$ 1,241,836$ 2.47%2.69%2.84%1.83% Page 141 Less:Total Taxable Levy Residential Commercial Industrial Railroad Tax-Exempt Assessed Year Property Property Property Property Property Value 2008 1,179,126 607,923 - - - 1,787,049 2009 1,176,749 562,531 - - - 1,739,280 2010 1,088,414 511,191 - - - 1,599,605 2011 1,003,641 490,189 - - - 1,493,830 2012 910,922 448,374 - 13 - 1,359,309 2013 856,140 419,122 - 13 - 1,275,275 2014 849,811 414,919 - 13 - 1,264,743 2015 895,787 440,733 - 13 - 1,336,533 2016 967,753 461,677 - 13 - 1,429,443 2017 1,025,265 486,517 - 13 - 1,511,795 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. VILLAGE OF OAK BROOK Assessed Value and Actual Value of Taxable Property Last Ten Levy Years (data in thousands) Page 142 Total Estimated Estimated Direct Actual Actual Tax Taxable Taxable Rate Value Value - 5,361,147 33.333% - 5,217,840 33.333% - 4,798,815 33.333% - 4,481,490 33.333% - 4,077,927 33.333% - 3,825,825 33.333% - 3,794,229 33.333% - 4,009,599 33.333% - 4,288,329 33.333% - 4,535,385 33.333% Page 143 Tax Levy Year 2008 2009 2010 2011 2012 2013 2014 Tax Rates Village of Oak Brook - - - - - - - Basic Town 0.3567 0.3579 0.3875 0.4166 0.4567 0.4892 0.4993 Junior College #502 0.1858 0.2127 0.2349 0.2495 0.2681 0.2956 0.2975 Grade School #53 0.7936 0.8159 0.9164 1.0099 1.1465 1.2491 1.2932 High School #86 1.0804 1.0948 1.2011 1.3362 1.4984 1.5681 1.5921 Oak Brook Park District 0.1504 0.1555 0.1740 0.1904 0.2174 0.2369 0.2442 Total Tax Rates 2.5669 2.6368 2.9139 3.2026 3.5871 3.8389 3.9263 Data Source Office of the County Clerk NOTE: Basic town includes all county, forest preserve and township rates. Property tax rates are per $100 of assessed valuation. Last Ten Levy Years Property Tax Rates - Direct and Overlapping Governments VILLAGE OF OAK BROOK Page 144 2015 2016 2017 - - - 0.4783 0.4490 0.4145 0.2786 0.2626 0.2431 1.2435 1.1710 1.1415 1.5592 1.4731 1.4380 0.2349 0.2229 0.2184 3.7945 3.5786 3.4555 Page 145 Sales Sales Taxes Taxes Taxpayer Revenue Taxpayer Revenue Apple Computer Inc.Apple Computer Costco Wholesale Costco Wholesale Louis Vuitton USA Inc.Macy's Macy's Macy's Home Store Neiman Marcus Neiman Marcus Nordstrom Rack Nordstrom Rack Nordstrom, Inc.Nordstrom, Inc. Peloton Interactive Inc.Sears Roebuck & Co. Room & Board Inc.Tiffany & Co. Tiffany & Co.Walter E. Smithe Furniture Top 10 total 5,600,563 $ Top 10 total 4,807,559 $ Total Sales Tax Revenue 12,364,673 $ Total Sales Tax Revenue 10,024,077 $ Top 10 as a Percent of Sales Top 10 as a Percent of Sales Tax Revenue 45.29%Tax Revenue 47.96% Data Source Illinois Department of Revenue - above represents January 1 - December 31 Village cash collections. 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. 2018 2009 Current Year and Nine Years Ago Principal Revenue Taxpayers VILLAGE OF OAK BROOK Page 146 Village DuPage County Regional Fiscal Direct State DuPage County Water Transportation Year Rate Rate Rate Commission Authority 2009 1.00%5.00%0.25%0.25%0.75% 2010 1.00%5.00%0.25%0.25%0.75% 2011 1.00%5.00%0.25%0.25%0.75% 2012 1.00%5.00%0.25%0.25%0.75% 2013 1.00%5.00%0.25%0.25%0.75% 2014 1.00%5.00%0.25%0.25%0.75% 2015 1.00%5.00%0.25%0.25%0.75% 2016 1.00%5.00%0.25%0.00%0.75% 2017 1.00%5.00%0.25%0.00%0.75% 2018 1.00%5.00%0.25%0.00%0.75% Data Source Village and County Records VILLAGE OF OAK BROOK Direct and Overlapping Sales Tax Rates Last Ten Levy Years Page 147 Village Non-Home Rule Total Rate Rate 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.75% 0.50%7.50% 0.50%7.50% 0.50%7.50% Page 148 Governmental Activities Activities Ratio of Total Fiscal Installment Installment Total Outstanding Debt Year Notes Notes Capital Primary To Equalized Ended Payable Payable Leases Government Assessed Valuation* 2009 12,332,443 325,000 - 12,657,443 0.71% 2010 10,563,180 731,511 - 11,294,691 0.65% 2011 8,736,093 462,674 - 9,198,767 0.58% 2012 6,984,930 168,837 7,153,767 0.48% 2013 5,017,176 - - 5,017,176 0.37% 2014 4,592,176 - - 4,592,176 0.36% 2015 4,207,263 - - 4,207,263 0.33% 2016 3,787,263 - - 3,787,263 0.28% 2017 3,330,263 - - 3,330,263 0.23% 2018 3,103,263 - 61,509 3,164,772 0.21% 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 153 for personal income and population data. Business-Type VILLAGE OF OAK BROOK Ratios of Outstanding Debt By Type Last Ten Fiscal Years Page 149 Total Total Outstanding Outstanding Debt Per Debt Per Personal Income Capita* 0.86%1,454.54 0.76%1,297.94 0.89%1,166.91 0.69%907.49 0.48%636.46 0.44%582.54 0.41%533.71 0.36%480.43 0.32%422.46 0.30%401.47 Page 150 (2) *Percentage (1)of Debt (3) Gross Applicable to **Government's Governmental Unit Bonded Debt Government Share of Debt Village of Oak Brook -$ 100%- DuPage County 186,444,944 3.95%7,364,575 DuPage Forest Preserve 134,538,473 3.95%5,314,270 DuPage Water Commission - 4.37%- Sanitary Districts - 17.67%- Park Districts 3,334,552 82.32%2,745,003 Elementary School Districts 117,434,462 20.68%24,285,447 High School Districts 137,876,254 10.91%15,045,884 Junior College 502 165,718,604 4.08%6,767,616 Unit District 205 85,639,289 5.03%4,307,656 Subtotal-Overlapping Debt 830,986,578$ 65,830,452$ Total Direct and Overlapping Debt 830,986,578$ 65,830,452$ *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 December 31, 2018 Schedule of Direct and Overlapping Bonded Debt VILLAGE OF OAK BROOK Page 151 2009 2010 2011 2012 2013 Legal debt limit 154,132,970 $ 150,013,021 $ 137,966,087 $ 128,842,981 $ 117,240,487 $ Total net debt 2,400,000 2,055,000 1,710,000 1,335,000 1,080,000 applicable to limit Legal debt margin 151,732,970 147,958,021 136,256,087 127,507,981 116,160,487 Total net debt applicable 1.56%1.37%1.24%1.04%0.92% to the limit as a percentage of debt limit Last Ten Fiscal Years VILLAGE OF OAK BROOK Legal Debt Margin Information Page 152 2014 2015 2016 2017 2018 109,992,484 $ 109,084,108 $ 115,276,061 $ 123,289,569 $ 130,392,337 $ 820,000 555,000 280,000 - - 109,172,484 108,529,108 114,996,061 123,289,569 130,392,337 0.75%0.51%0.24%0.00%0.00% Legal Debt Margin Calculation for Fiscal 2017 Assessed Value 1,511,795,209$ Legal debt margin 8.625% Debt limit 130,392,337 Debt applicable to limit General obligation bonds - Legal debt margin 130,392,337$ Page 153 Per Capita Total (2) Fiscal Personal Personal Unemployment Year Population Income Income Rate 2009 8,702 (E)169,718 1,476,886,036 9.0% 2010 8,702 (E)169,718 1,476,886,036 7.6% 2011 7,883 (A)131,719 1,038,340,877 7.5% 2012 7,883 (E)131,719 1,038,340,877 7.3% 2013 7,883 (E)131,719 1,038,340,877 6.4% 2014 7,883 (E)131,719 1,038,340,877 4.6% 2015 7,883 (E)131,719 1,038,340,877 4.6% 2016 7,883 (E)131,719 1,038,340,877 4.4% 2017 8,077 (E)131,719 1,063,894,363 3.9% 2018 8,077 (E)131,719 1,063,894,363 2.9% (A) Actual (E) Estimate Note: Latest information available Data Source U.S. Bureau of Labor Statistics VILLAGE OF OAK BROOK Demographic and Economic Information Last Ten Fiscal Years Page 154 2018 2010 Percentage of Total Percentage of Employer Rank Employees Village Population Rank Employees Village Population Oakbrook Center Mall 1 7,160 88.6%1 3,150 36.2% Advocate Health Care 2 1,240 15.4%3 1,980 22.8% Ace Hardware 3 962 11.9%5 780 9.0% Hub Group 4 779 9.6% Chamberlain Group 5 650 8.0% Inland Real Estate Group of Companies 6 406 5.0%4 800 9.2% TreeHouse Foods 7 402 5.0% Blistex 8 396 4.9% Lion's Club International 9 341 4.2%8 285 3.3% Millenium Trust 10 312 3.9% McDonald's Corporation 2 3000 34.5% ADT Security Services Inc.6 350 4.0% Follet Higher Education Group 7 338 3.9% Sanford Corporation 9 271 3.1% Reed Elsevier 10 230 2.6% Data Source A-Z Database; Selective Telephone Survey Current Year and Eight Years Ago Principal Employers VILLAGE OF OAK BROOK Page 155 (1) Estimated Sales 2018 Municipality Rank Sales Per Capita Population Chicago 1 29,555,991,500$ 10,880$ 2,716,450 Naperville 2 3,430,678,700 23,230 147,682 Schaumburg 3 3,269,724,600 44,076 74,184 Springfield 4 2,831,201,200 24,647 114,868 Rockford 5 2,495,486,600 16,970 147,051 Joliet 6 2,336,084,600 15,735 148,462 Mount Prospect 7 2,275,829,600 42,200 53,930 Aurora 8 2,219,690,700 11,045 200,965 Peoria 9 2,199,985,800 19,489 112,883 Orland Park 10 2,077,095,500 35,346 58,765 Glenview 11 1,804,703,800 37,867 47,659 Champaign 12 1,711,599,500 19,576 87,432 Elgin 13 1,621,625,700 14,420 112,456 Bolingbrook 14 1,566,136,500 20,826 75,201 Niles 15 1,560,002,000 52,914 29,482 Vernon Hills 16 1,531,968,700 58,354 26,253 Skokie 17 1,515,346,900 23,685 63,978 Tinley Park 18 1,447,165,200 25,538 56,668 Bloomington 19 1,410,835,700 18,103 77,934 Des Plaines 20 1,403,263,400 24,114 58,193 Downers Grove 21 1,296,229,100 26,165 49,540 Gurnee 22 1,280,893,100 41,632 30,767 Arlington Heights 23 1,269,385,600 16,783 75,634 Elmhurst 24 1,269,322,100 27,202 46,662 Oak Brook 25 1,258,799,200 155,850 8,077 Source: Illinois Department of Revenue - Local Tax Allocation Division and the U.S. Census Bureau. VILLAGE OF OAK BROOK Retail Sales Volume - Top 25 Illinois Communities State Collection Period January 1, 2018 Through December 31, 2018 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 March 1, 2018 through February 28, 2019. Page 156 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 2009 10,024,077 -9.4%4,447,786 4.1%14,471,863 -5.7% 2010 10,457,375 4.3%4,703,153 5.7%15,160,528 4.8% 2011 11,048,561 5.7%4,939,565 5.0%15,988,126 5.5% 2012 11,147,846 0.9%5,132,229 3.9%16,280,075 1.8% 2013 11,641,063 4.4%5,171,736 0.8%16,812,799 3.3% 2014 12,004,427 3.1%5,336,836 3.2%17,341,263 3.1% 2015 12,376,637 3.1%5,667,235 6.2%18,043,872 4.1% 2016 13,021,926 5.2%5,997,652 5.8%19,019,578 5.4% 2017 12,541,909 -3.7%5,711,846 -4.8%18,253,755 -4.0% 2018 12,364,673 -1.4%5,581,941 -2.3%17,946,614 -1.7% Source: Village Records Note: The Village's Non-Home rule sales tax rate increased from .25% to .50% in 2008. VILLAGE OF OAK BROOK Sales Tax Receipts Cash Basis Last Ten Fiscal Years Page 157 VILLAGE OF OAK BROOK State Sales Tax Receipts By Month Cash Basis Last Five Fiscal Years Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/14 Ended 12/31/15 Ended 12/31/16 Ended 12/31/17 Ended 12/31/18 January 965,587 $ 989,753 $ 994,739 $ 1,007,103 $ 941,951 $ February 1,007,170 1,069,783 1,045,429 1,114,054 1,041,681 March 1,684,678 1,707,798 1,658,727 1,594,758 1,639,138 April 668,268 796,933 847,398 856,442 837,767 May 746,691 748,968 939,441 791,176 768,902 June 982,179 1,004,066 1,165,340 975,861 994,866 July 911,040 928,749 945,183 922,697 918,572 August 994,734 1,011,901 1,041,277 1,020,651 1,066,624 September 1,070,696 993,355 1,218,034 1,083,420 1,058,046 October 980,261 1,011,858 1,045,493 1,020,709 1,020,698 November 1,039,263 1,086,052 1,084,781 1,118,016 1,092,064 December 953,862 1,027,421 1,036,284 1,037,022 984,364 Total 12,004,429 $ 12,376,637 $ 13,022,126 $ 12,541,909 $ 12,364,673 $ Source: Village Records Page 158 FY 2015 FY 2016 FY 2017 FY 2018 2.5%0.5%1.2%-6.5% 6.2%-2.3%6.6%-6.5% 1.4%-2.9%-3.9%2.8% 19.3%6.3%1.1%-2.2% 0.3%25.4%-15.8%-2.8% 2.2%16.1%-16.3%1.9% 1.9%1.8%-2.4%-0.4% 1.7%2.9%-2.0%4.5% -7.2%22.6%-11.1%-2.3% 3.2%3.3%-2.4%0.0% 4.5%-0.1%3.1%-2.3% 7.7%0.9%0.1%-5.1% 3.1%5.2%-3.7%-1.4% From Preceding Year Percentage Change Page 159 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Month Ended 12/31/14 Ended 12/31/15 Ended 12/31/16 Ended 12/31/17 Ended 12/31/18 January 432,662 $ 457,128 $ 457,292 $ 466,623 $ 420,506 $ February 447,936 495,179 485,225 524,829 472,116 March 758,692 795,630 778,457 756,825 758,180 April 292,394 361,858 383,224 382,843 373,991 May 331,429 338,862 431,470 361,160 341,784 June 416,907 457,660 539,151 445,584 449,890 July 405,594 423,983 434,261 425,623 417,534 August 436,072 469,228 481,286 459,149 486,225 September 457,975 456,114 567,454 492,607 482,931 October 439,287 468,027 481,499 458,506 465,528 November 453,963 474,287 476,167 471,254 469,270 December 463,924 469,279 482,166 466,843 443,986 Total 5,336,835 $ 5,667,235 $ 5,997,652 $ 5,711,846 $ 5,581,941 $ Source: Village Records VILLAGE OF OAK BROOK Last Five Fiscal Years Cash Basis Non-Home Rule Sales Tax Receipts By Month Page 160 FY 2015 FY 2016 FY 2017 FY 2018 5.7%0.0%2.0%-9.9% 10.5%-2.0%8.2%-10.0% 4.9%-2.2%-2.8%0.2% 23.8%5.9%-0.1%-2.3% 2.2%27.3%-16.3%-5.4% 9.8%17.8%-17.4%1.0% 4.5%2.4%-2.0%-1.9% 7.6%2.6%-4.6%5.9% -0.4%24.4%-13.2%-2.0% 6.5%2.9%-4.8%1.5% 4.5%0.4%-1.0%-0.4% 1.2%2.7%-3.2%-4.9% 6.2%5.8%-4.8%-2.3% From Preceding Year Percentage Change Page 161 Fiscal Years 2009 2010 2011 2012 2013 2014 2015 General Merchandise 1,864,664$ 1,988,286$ 2,025,257$ 2,087,873$ 1,859,342$ 1,611,302$ 1,408,191$ Food 68,576 49,666 45,910 49,616 52,331 57,974 170,497 Drinking and eating places 1,270,903 1,388,881 1,428,598 1,506,289 1,615,029 1,717,184 1,770,370 Apparel 2,711,321 2,987,468 3,034,654 3,110,107 3,065,618 3,141,898 3,078,876 Furniture, H.H. and radio 840,999 957,980 975,472 1,090,244 1,251,860 1,421,458 1,606,454 Lumber, building and hardware 32,472 17,588 12,853 24,600 10,653 8,686 6,623 Automotive and filling stations 1,568,808 1,623,980 1,509,528 1,619,343 1,674,689 1,682,593 1,698,040 Drugs and other retail 1,046,055 1,265,890 1,472,117 1,124,986 1,250,569 1,530,596 1,817,539 Agriculture and all others 414,462 354,622 422,368 418,871 421,724 486,652 506,631 Manufacturers 100,642 83,952 126,281 174,572 687,312 451,814 238,943 Total 9,918,901$ 10,718,314$ 11,053,036$ 11,206,502$ 11,889,128$ 12,110,156$ 12,302,164$ Village direct sales tax rate 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 April 1 and March 31 as reported by the State. VILLAGE OF OAK BROOK Sales Tax By Category Last Ten Fiscal Years Page 162 2016 2017 2018 1,305,272$ 1,180,117$ 1,142,607$ 167,143 191,370 212,053 1,844,551 1,866,420 1,931,879 2,989,258 2,931,827 2,947,860 1,613,318 1,472,053 1,601,424 4,642 6,603 1,478 1,683,947 1,884,059 1,921,190 1,857,751 1,842,238 1,761,720 1,368,475 805,122 633,820 204,789 262,420 499,353 13,039,146$ 12,442,227$ 12,653,383$ 1.00%1.00%1.00% Page 163 Fiscal Years 2009 2010 2011 2012 2013 General Merchandise 926,187$ 973,309$ 1,006,608$ 1,028,630$ 923,522$ Food 20,652 19,332 20,436 22,769 24,206 Drinking and eating places 632,360 692,224 710,688 749,294 804,095 Apparel 1,353,324 1,492,720 1,516,414 1,554,292 1,532,230 Furniture, H.H. and radio 419,064 478,065 486,841 544,734 624,646 Lumber, building and hardware 16,233 8,807 6,427 12,299 5,326 Automotive and filling stations 419,622 438,722 413,502 444,986 462,595 Drugs and other retail 455,080 496,243 522,092 574,857 581,045 Agriculture and all others 191,955 160,284 190,247 186,919 189,403 Manufacturers 50,271 41,947 63,114 75,056 74,826 Total 4,484,747$ 4,801,654$ 4,936,368$ 5,193,836$ 5,221,895$ Village non-home rule sales tax rate 0.50%0.50%0.50%0.50%0.50% Source: Illinois Department of Revenue - Local Tax Allocation Division Note The Village's Non-Home rule sales tax increased from .25% to .50% effective January 1, 2008. VILLAGE OF OAK BROOK Non-Home Rule Sales Tax By Category Last Ten Fiscal Years Note: Gross receipts include both Cook and DuPage County 1% municipal sales tax. Amounts reflect sales tax collected between April 1 and March 31 as reported by the State. Page 164 2014 2015 2016 2017 2018 799,234$ 697,506$ 646,561$ 584,228$ 566,703$ 26,475 82,154 79,404 90,688 100,691 854,898 880,598 916,540 927,586 945,281 1,570,256 1,538,617 1,493,830 1,464,698 1,450,824 707,730 801,746 806,090 737,997 788,327 4,341 3,290 2,311 3,292 721 461,447 454,848 443,470 505,785 523,197 717,631 862,594 880,058 871,568 824,589 221,375 233,499 662,998 375,069 282,685 78,163 80,757 88,331 125,245 240,930 5,441,550$ 5,635,608$ 6,019,593$ 5,686,156$ 5,723,949$ 0.50%0.50%0.50%0.50%0.50% Page 165 Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 111 Board of Trustees 0.50 0.50 0.75 0.50 0.50 0.50 0.50 0.50 0.50 0.50 112 Village Clerk 3.25 1.50 1.75 1.95 1.25 1.25 2.75 2.08 2.03 1.58 121 Legal 0.25 0.25 0.25 0.35 0.25 0.25 0.25 0.35 0.00 0.00 131 General Management 2.50 2.25 3.00 2.55 2.50 3.00 2.00 1.72 1.60 1.60 132 Human Resources 1.50 1.75 1.50 1.75 2.00 2.00 2.00 1.10 1.28 0.95 134 Risk Management 0.50 0.50 0.50 0.40 0.50 0.50 0.50 0.20 0.20 0.20 136 General Services 1.25 2.00 1.75 1.35 0.00 0.00 0.00 1.20 1.20 1.20 137 Business Licenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 138 Communications and Marketing 0.00 0.00 0.00 0.00 0.00 0.50 0.00 0.00 0.00 0.00 141 Purchasing 0.00 0.50 0.50 0.85 1.00 1.00 1.00 0.00 0.00 0.00 151 Information Services 3.00 2.25 2.00 2.60 2.00 2.00 2.00 2.65 2.90 2.40 152 Geographic Information Systems 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.35 0.35 0.35 Legislative and General Management Total 12.75 11.50 12.00 12.30 10.00 11.00 11.00 10.15 10.06 8.78 211 Financial Services Management 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.88 1.00 1.00 221 Accounting and Reporting 5.00 3.00 2.75 2.75 3.00 3.00 3.00 4.05 3.05 3.05 231 Customer Service 0.00 0.00 0.00 0.00 1.50 1.50 1.50 0.00 0.00 0.00 241 Purchasing 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00 Financial Services Total 6.00 4.00 3.75 3.75 5.50 5.50 5.50 5.93 5.05 5.05 321 Buildings and Grounds 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 3.00 335 Forestry 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 0.20 341 Garage Operations 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.48 2.48 1.98 351 Water Operations 7.50 6.50 6.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 360 Public Works Management 3.00 2.50 2.50 2.00 2.50 2.50 2.50 3.00 3.00 3.00 361 Streets - General Salaries 8.00 8.00 8.00 8.00 6.50 6.50 6.50 6.90 7.90 7.40 Public Works Total 21.50 20.00 19.50 19.00 19.00 19.00 19.00 20.58 22.08 22.58 511 Library General Operations 7.00 4.00 4.50 5.25 5.50 5.50 6.50 5.88 5.75 4.75 521 Technical Services 2.50 3.00 2.75 2.75 2.00 2.00 2.00 1.80 1.80 1.80 531 Reference and User Services 2.50 1.75 2.25 2.50 3.00 3.00 2.00 1.95 1.90 1.90 541 Youth Services 2.75 1.50 2.00 1.50 1.50 2.00 2.00 1.95 1.90 1.90 Library Total 14.75 10.25 11.50 12.00 12.00 12.50 12.50 11.58 11.35 10.35 (Continued) Last Ten Fiscal Years Budgeted Full-Time Equivalent Employees VILLAGE OF OAK BROOK Page 166 Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 611 Police Services Management 3.00 3.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 621 Police Field Services 35.25 31.50 31.50 32.20 31.00 31.00 31.00 32.20 32.20 32.20 622 Police Auxiliary 0.00 0.00 0.00 0.00 0.00 0.00 5.00 0.28 0.50 0.50 631 Police General Support 3.50 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 4.00 632 Police Investigations 6.00 8.00 8.00 7.00 6.00 6.00 6.00 6.00 6.00 6.00 633 Village Communications Center 12.00 9.00 7.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 634 Police Support Services 3.00 2.50 2.50 6.55 3.50 3.50 3.50 3.25 3.25 3.25 635 Police Public Relations/Crime Prevention 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 636 Police Adjudication 0.00 0.00 0.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Police Total 62.75 57.00 54.50 50.75 47.50 47.50 52.50 48.73 48.95 48.95 700 Fire and EMS - General Salaries**33.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 31.00 711 Rescue and Fire Service Management 2.50 1.50 1.50 1.50 1.50 2.20 2.85 2.35 2.35 2.35 723 Fire Rescue and Training 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.20 0.20 0.20 731 Emergency Medical Service 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.40 6.40 6.60 741 Fire Prevention and Public Safety Education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.60 3.60 3.60 Fire Total***41.50 38.50 38.50 38.50 38.50 39.20 39.85 43.55 43.55 43.75 811 Sports Core General Operations 2.25 1.75 1.50 0.75 0.25 1.50 0.50 1.40 1.50 1.40 812 Swimming Operations 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.15 1.15 813 Tennis 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 0.65 0.75 821 Sports Core Food & Beverage Operations 2.75 0.00 0.50 0.50 0.50 1.00 1.50 1.50 1.75 1.10 822 Poolside Grill Food & Beverage Operations 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.00 823 Golf Club Food & Beverage Operations 0.25 0.50 0.50 0.50 0.50 0.50 0.50 3.80 3.80 3.80 831 Golf Club General Operations 3.25 2.75 2.25 2.00 2.00 2.00 2.00 8.00 10.15 10.15 832 Golf Learning and Practice 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 833 Golf Cart Operations 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 834 Golf Course Maintenance 3.00 3.00 3.00 3.00 3.00 3.00 3.00 13.50 12.50 12.50 Sports Core Total 17.45 13.95 13.70 12.70 12.20 13.95 13.45 34.15 34.90 33.45 460 Engineering 4.00 3.50 3.25 3.50 3.50 3.50 3.50 3.40 2.36 1.88 911 Community Development Management 2.00 2.00 2.00 2.00 2.00 2.50 2.50 2.60 2.60 3.08 921 Code Enforcement 3.50 3.50 3.50 4.25 4.25 5.50 6.00 5.91 5.23 5.23 Community Development Total 9.50 9.00 8.75 9.75 9.75 11.50 12.00 11.91 10.19 10.19 GRAND TOTAL ALL DEPARTMENTS 186.20 164.20 162.20 158.75 154.45 160.15 165.80 186.58 186.13 183.10 **Six contract firefighter/paramedics are used to supplement the full-time complement of firefighter/paramedics. Source: Village Records ***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. *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. Last Ten Fiscal Years VILLAGE OF OAK BROOK Budgeted Full-Time Equivalent Employees (Continued) Page 167 Function/Program 2009 2010 2011 2012 2013 Public Safety Police Physical arrests 399 357 267 234 178 Parking violations 1,113 877 1,245 636 501 Traffic violations 3,464 4,090 3,374 3,137 2,897 Fire EMS Incidents 1,069 1,006 1,091 1,113 1,191 Fire Incidents 802 918 788 656 667 Communications Center Police calls dispatched 9,911 9,666 9,666 12,696 18,552 Fire/EMS calls dispatched 2,176 2,240 2,156 2,071 2,294 Water New water meters installed 10 10 11 14 15 Water main breaks repaired 63 59 50 61 48 Water pumped (Mil. Gals.)1,105 1,136 1,060 1,173 1,113 Library Total Circulation 90,287 87,906 84,768 91,017 93,300 Avg. Daily Circulation 267.9 260.5 253.0 269.0 274.0 Total Holdings 111,051 116,386 124,757 128,343 131,658 Community Development Building permits issues 606 696 705 770 811 Inspections 2,090 2,193 2,139 2,311 2,617 Estimated construction value 51,776,407$ 51,559,533$ 58,775,804$ 76,987,646$ 131,935,998$ Sports Core B&T Recreation Membership 259 300 320 363 347 Social Memberships 80 64 59 67 68 Total Events 123 39 35 56 66 Golf Memberships 219 207 182 154 146 Total Golf Rounds 39,686 37,750 35,196 38,637 34,670 Data Source Various village departments n/a Information was unavailable for this given period. Last Ten Fiscal Years Operating Indicators VILLAGE OF OAK BROOK Page 168 2014 2015 2016 2017 2018 196 208 191 212 181 306 299 901 443 404 2,986 2,082 1,465 1,495 1,398 1,321 1,329 1,432 1,380 1,408 742 600 630 672 722 19,853 19,442 23,924 21,656 23,716 2,448 2,246 2,407 2,493 2,616 16 33 19 23 13 36 17 43 31 29 1,080 1,152 1,087 995 966 90,485 91,205 112,423 105,129 114,014 265.0 270.0 318.0 312.0 337.0 131,973 102,441 97,201 94,353 91,789 837 850 841 943 908 2,648 2,790 2,999 2,963 2,607 110,922,495$ 174,948,935$ 99,520,330$ 176,470,285$ 135,704,908$ 338 307 317 294 307 82 81 77 - - 72 71 75 65 74 143 142 145 151 158 33,861 34,019 39,324 39,863 35,256 Page 169 Function/Program 2009 2010 2011 2012 2013 2014 Public Safety Police Stations 1 1 1 1 1 1 Area patrols 5 4 5 5 5 5 Patrol units 15 12 11 11 11 11 Fire Fire stations 2 2 2 2 2 2 Engine 1 1 1 1 1 1 Truck 1 1 1 1 1 1 Squad 1 1 1 1 1 1 Ambulances 2 2 2 2 2 2 Incident Command Vehicle 1 1 1 1 1 1 Reserve Apparatus 4 4 4 4 4 4 Staff & Support Vehicles 5 5 5 5 5 4 Public Works Arterial streets (miles)8.5 8.5 8.5 8.5 8.5 8.5 Residential streets (miles)49 49 49 49 49 49 Streetlights 565 565 565 565 565 565 Traffic intersections 11 11 11 11 11 11 Water Water mains (miles)105 105 105 105 105 105 Fire hydrants 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. Data Source Various village departments Last Ten Fiscal Years Capital Asset Statistics VILLAGE OF OAK BROOK Page 170 2015 2016 2017 2018 1 1 1 1 5 5 5 5 11 11 11 11 2 2 2 2 1 1 2 1 1 1 1 1 1 1 2 1 2 2 2 2 1 1 1 1 4 4 4 4 3 3 3 3 8.5 8.5 8.5 8.5 49 49 49 49 565 565 565 565 11 11 11 11 105 105 105 105 1,500 1,500 1,500 1,500 8.0 mil.8.0 mil.8.0 mil.8.0 mil.