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2017-2021 Five Year PlanVILLAGE OF OAK BROOK 2017-2021 Five -Year Financial Plan OF 04 r1*) 0UN'T Village of Oak Brook, Illinois 1200 Oak Brook Road Oak Brook, Illinois 60523 www.oak-brook.org VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN TABLE OF CONTENTS SECTION PAGE Introduction 3 General Assumptions 3 Relationship to the Annual Budget 4 General Corporate Fund 6 Hotel/Motel Tax Fund 20 Motor Fuel Tax Fund 26 Infrastructure Fund 30 Promenade Special Tax Allocation Fund 35 Water Fund 39 Sports Core Fund 44 Self -Insurance Fund 62 Garage Fund 66 Equipment Replacement Fund 70 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN INTRODUCTION The Village of Oak Brook Five -Year Financial Plan is intended to provide the community with a long-range projection of the financial condition for each of the ten funds that comprise the financial structure of the Village of Oak Brook. The Five -Year Plan assumes the continuation of current service levels and being able to maintain those levels in future years. The forecast provides a foundation for discussion and policy decisions that will be made in the future to maintain the existing service levels and/or enhance service levels in specific areas. Each fund in the Village's financial structure is a separate financial entity. Although the Village's audited financial statements are prepared on an accrual or modified accrual basis (as applicable and consistent with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board), the Five -Year Financial Plan, like the annual Municipal Budget, is prepared and presented on a cash basis. This results in a more easily understood and more useful document. The presentation for each fund includes a summary, revenue projections, a general long-range operating budget and a capital improvement program, if applicable. The Capital Improvements Program focuses on all vehicles and all capital items that are over $5,000. The summary for each fund reflects the revenue and expenditure projections and presents a rolling five-year operating statement, beginning with cash available as of January 1, 2016 as reported in the audited financial statements as of December 31, 2015. GENERAL ASSUMPTIONS The principal assumptions for the Five -Year Financial Plan involve the rates for general inflation, "personnel inflation" (direct personnel costs as well as costs of fringe benefits and training), interest rates, and the rate of growth in sales tax, the principal revenue source of the Village. The 2017-2021 Five -Year Financial Plan is based on the following general assumptions: • Inflation is the measure of the increase in the cost of goods and services. Inflation is measured by the Consumer Price Index and impacts most expenditure categories. For the purpose of this report, inflation for the purchase of goods and services and operational and contractual services are forecasted at 2.5%. • Personnel inflation, (including benefits, training and merit adjustments applicable to personnel not at top -of -grade) are factored at 4.5% per year. • Interest earnings on invested funds at rates ranging from less than .2% to 2%, depending upon the fund, the type and length of investment. 3 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN • Sales tax receipts for 2017 are projected to increase 1.5% from the adjusted 2016 estimated cash collections. For each year thereafter the sales tax receipts are projected to increase 1.5%. Receipts from the non -home rule sales tax, are projected using the same assumptions as the growth in general sales tax receipts. In years 2017-2021, the long-range operating budget projections are adjusted by an experience factor intended to take into account normal positive variances in expenditures across the thousands of accounts that make up the Village's financial structure and to partially offset the effects of compounding of the inflation assumptions in the later years. Other assumptions specific to particular funds are described in the narrative preceding the presentation of each fund. RELATIONSHIP TO THE ANNUAL BUDGET For 2017, staff has prepared the 2017-2021 Five -Year Plan, 2017 Budget, and 2017 Program Objectives concurrently. This is done in order to streamline the budget process by reducing the amount of time spent overall by staff and the Village Board on budget -related activities. The 2017 Budget and 2017-2021 continues the Village Board directive that staff should prioritize items for inclusion in the 2017 budget and Five -Year Financial Plan using the following hierarchy: • Projects or expenditures necessary to maintain or replace critical equipment, projects already started yet not completed, projects that are the recipient of grant funding, and items required to comply with Illinois and Federal law. • Projects or expenditures that will directly contribute to increased revenues from sales tax, utility and telecommunications taxes, and Hotel/Motel taxes. • Projects or expenditures that will significantly increase the efficiency of Village operations. • Projects or expenditures that will significantly improve the safety, convenience, or quality of life for residents, non-residents, and businesses. • Projects or expenditures that will improve the aesthetics of the Village. • Discretionary projects or expenditures that add new services or amenities. 4 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN The actual 2017 Municipal Budget is provided in a separate document; whereas, the Five -Year Financial Plan is structured by Fund, the operating budget is structured according to cost centers (called "programs") and is presented at a level of detail far beyond that reflected in the Five -Year Plan. The capital improvement budget is based on the capital improvement program for the first year of the Five -Year Plan. At the fund level in the Budget document, revenue budgets are brought together with operating and capital improvement expenditure budgets to present a cash -basis income statement for each fund (called a "Fund Summary"). The Fund Summary can be compared to the first year of the relevant Five -Year Financial Plan Summary to ensure that the Budget matches the first year of the Five -Year Plan for that fund. 5 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN GENERAL CORPORATE FUND DESCRIPTION: The General Corporate Fund is the main operating fund of the Village which provides core services for its operations of the major Village departments such as Police, Fire, Library, and many other administrative departments. Capital improvements, contributions to pension funds (in lieu of property tax levies), transfers to the Garage and Equipment Replacement Funds (through user charges), and loans to other funds as appropriate are all included in the General Fund. OVERVIEW: The Village's budget methodology is to estimate revenues conservatively and to maintain a spending level less than or equal to current year resources. The General Corporate Fund 2017 Budget is operating at a balanced budget where revenues are at or exceed expenditures without using cash reserves. The proposed 2017 General Fund Revenues totals $24.1 million, an increase of $0.3 million over the 2016 budgeted revenues, or 1.2%. The total General Fund spending in the proposed 2017 Budget is $24.0 million, an increase of $0.2 million, or 1.0%, from the 2016 Budget. The following highlights some of the major budget issues facing the Village for 2017 and beyond: The pension issue needs to be addressed at the State level as the funding for these plans is becoming increasingly unsustainable for all Illinois municipalities. The actuarial rate of 6.75%, 100% level of funding, and the RP2000 projected to 2016 mortality table was budgeted in 2017 - 2021 for both the Police and Fire pension. Total contributions to the Police and Fire Pension Funds budgeted in 2017 are $3.8 million. In year 2021, total contributions to the Police and Fire Pension Funds are expected to reach $4.4 million. The impact of new healthcare reforms on employers is multi -faceted and complex. This will directly require employers to modify their practices and policies. • The sustainability of various revenue sources remains uncertain for future years. McDonald's will be departing its Oak Brook headquarters in 2018, which could result in the loss of 3,000 employees and numerous business visitors coming into the Village on a daily basis. Although the Village is losing McDonald's, it will be gaining Duchossois Group, Midwest Orthopedics, Hyatt House, and other business in the future years. C. VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN • Funding of Capital Improvements continues to be a challenge being able to prioritize and address all of the funding needs. A facility study will be conducted in 2016 to determine the future replacement and maintenance costs of the Butler Government Center. A study for Fire Station 93 will be conducted during 2017. The Village's 2017 — 2021 Five -Year Financial Plan represents the current conditions and future viability of the Village's finances. The overall objective of this plan is to provide analytical information for key budgetary decisions that will allow the Village to accomplish its goals over the next five-year period and beyond. Revenues: The principal source of revenue to the General Corporate Fund, and to the Village, is the sales tax. As a result, the rate of growth in sales tax receipts determines, to a significant extent, the Village's ability to meet the needs of the community and its overall financial condition. It has been the practice of the Village to project growth in sales tax receipts conservatively, and that practice is continued in this edition of the Five - Year Financial Plan (See GENERAL ASSUMPTIONS). For 2017, sales tax revenue is projected to be $13.0 million, which is even with the 2016 estimated collections. The flat sales tax estimate factors an adjustment downwards for non -routine tax collections that were received during 2016 from a newer business. Since historical data is not available, the 2017 budget takes a conservative approach to estimating future collections. The adjusted 2016 collections were increased 1.5% to arrive at the 2017 projection of $13.0 million. Receipts from the utility tax on electric, natural gas, and telecommunications service are expected to end the year at $5.6 million, a increase of 2.5% compared to the 2016 budget. Utility tax collections for 2017 are budgeted to be down slightly from the 2016 estimated amount. Inflationary increases of 1.0% have been assumed in subsequent years 2018 - 2021. State shared revenues in total are projected using information provided by the Illinois Municipal League and for 2017 are projected to increase by $10,555, or 0.9%. The State Income Tax is projected to increase $23,775, or 3.0%, compared to the 2016 projected amount. Use tax is expected to increase by $1,795, or 1.0%, from the 2016 projected amount. Replacement Tax is expecting to decrease $15,015, or 5.6%, from 2016 projected amount. State shared revenues are projected to increase by 2% in years 2018 — 2021. The rates imposed for a number of license and fee categories, such as building permits are projected to increase and should positively impact revenues. Investment returns can significantly fluctuate depending on market conditions; therefore, interest revenue is projected at $125,000 for 2017. Most other revenue sources are projected to increase from 0% to 3% per year for the duration of the Five -Year Financial Plan. 7 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN Expenditures: Legislative and General Management. This department involves a wide variety of general -scope functions including the operations of the Village Board and the offices of the Village Clerk, Village Manager and Village Attorney. The Village Clerk budget includes an increase in salaries and benefits due to reallocating 65% of staff time from the Legal and Human Resources budget. This is offset by the elimination of a part time position in the Village Clerk budget for 2017. The Legal budget includes no salary and benefits as the 35% allocation of the Senior Administrative Assistant has been shifted to the Village Clerk budget. The Legal program reflects a decrease in attorney fees, which are budgeted at $120,000, a decrease of 40% from the 2016 Budget. The decrease in Village attorney fees is the result of a change in attorney early in 2016. Labor Attorney fees of $66,000 are budgeted for Fire and Public Works negotiations. The General Management program reflects a decrease in salaries and benefits due to combining the elimination of the Assistant Village Manager position. This position was previously combined with the Finance Director position. The Human Resources budget includes a decrease in full time salaries and benefits due to moving the Senior Administrative Assistant's 30% allocation to the Village Clerk budget. The Human Resources budget also includes an increase in part time salaries for an employee hired in late 2016. This employee will work less than 1,000 per year. Information Technology budget includes the continuation of two full time contract services for a village -wide document imaging project for $62,400. A part time IT person is budgeted to work less than 1,000 hours in 2017. This position was previously a full time employee that was split 50% with the Village of Hinsdale. This agreement was discontinued during 2016. A 10% portion of the IT Director's salary and benefits will continue to be allocated to the Geographic Information System program in year 2017. Financial Services This department includes all functions related to the Village's financial management activities. Financial Management reflects an increase in salary and benefits due to the elimination of 12% going to General Management program to help with Assistant Village Manager duties. The Accounting and Reporting program decreased 23.8% due to the elimination of the Assistant Finance Director position. Interfund Transfers includes a transfer to the Sports Core for $73,505 from the General Corporate Fund and $128,300 to Infrastructure for administrative costs. The Sports Core transfer from the General Corporate Fund is for Polo operating expenses of $50,000 and capital improvements for $23,505. Installment Contract Debt Service includes $289,800 for the final interest and principal payments on the West Wing building expansion. Public Works The Municipal Buildings Improvements budget includes $0.4 million in capital improvements, a decrease of $0.1 million from the 2016 budget. There are no significant projects scheduled for 2017 other than routine improvements and replacements. The program budgets for the majority of the Village's capital improvement which can be found in this book. Library The 2017 Budget includes the retirement of the Library Director. This position will be reclassified with a Head Librarian position. There are no other significant changes projected in the operating budget of this department, beyond the application of inflation assumptions. VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN Police Police Field Services includes an increase of $10,000 in special detail overtime compared to the 2016 Budget. Special detail hours are billed to outside sources and reimbursed to the Village. The Auxiliary budget includes an increase of $37,910 in personnel costs from the 2016 Budget due to an increase in special detail and training hours. Support Services Records includes DuComm fees of $460,675, a 5.0% increase from 2016. Police pension contributions are budgeted at $1.8 million, which is consistent with the 2016 budget. This amount reflects 100% of the actuarial determined contribution amount. Fire Fire, Rescue, and EMS Operations includes an increase in overtime of $36,310 from the 2016 budget due to staffing needs in this department. Fire Utility Vehicle for $160,000, Fire gear for $19,000, LDH fire hose for $9,000, Starcom portable radios for $18,000, and a fire gear dryer for $7,000 are included in the 2017 capital request. Emergency Medical Services program includes Zoll Monitor/Defibrillator for $35,200 which is needed for safety measures. Fire pension contributions are budgeted at $2.1 million, an increase of $126,400 or 6.5% compared to the 2016 Budget. This amount reflects 100% of the actuarial determined contribution amount. Development Services Development Services Management director's salary and benefits continue to be split between the Engineering program (40%) and the Development Services program (60%). The Village Planner position continues to be allocated to the Development Services department at 60% and to the Hotel Fund for their time on streetscape and beautification efforts at 40%. This program also includes the continuation of utilizing a professional planning consultant for $40,000 to update codes and ordinances and for the Commercial Revitalization Plan. Code Enforcement includes the transfer of a part time Permit Coordinator position to the Engineering Department. 9 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN Exceptional Charges: Exceptional Charges in the General Corporate Fund include: • Contributions to the Police and Firefighters' Pension Funds (in lieu of property taxes). These contributions are expected to increase for the duration of the Five -Year Financial Plan. • Debt service on installment contract certificates issued to fund a portion ($4 million) of the Municipal Complex Project. Additional debt service is assumed in 2018 for the police remodeling and electrical project as shown in the capital improvements five year plan. • Vehicle replacement charges are funded in the General Corporate Fund with 100% of funding contributions in years 2018 - 2021. Prior to 2012, they were eliminated for 2008, 2009, 2010, and 2011 due to General Corporate Fund revenue issues. The Equipment Replacement fund projected cash balance (page 72) factors in General Fund contributions for years 2017-2021 and will continue to be a healthy fund. • An annual reimbursement to the Infrastructure Fund in order to offset costs (primarily administrative) funded by the Infrastructure Fund that relate to General Corporate Fund activities. • An annual transfer to the Sports Core Fund in order to offset operating and capital costs. Capital Improvements: Significant capital expenditures reflected in the Plan include continued outlays for maintaining our current technology systems, Heritage Center improvements, improvements to fire station 93 and 94, replacement of critical equipment in the fire department, Butler Government Center improvements, and many more. The prioritization of specific projects are reviewed annually during the budget process and included if the General Corporate Fund has sufficient funds, but projecting them this far in advance is very difficult. OTHER CONSIDERATIONS: It is the financial policy of the Village Board to make every effort to maintain a six month reserve fund for operating expenses. The six month reserve fund is expected to end 2017 at 8.3 months once all of the budget changes noted here have been fully implemented. Oak Brook's current philosophy is to always try to keep reserves at or above 6 months even in downtimes. During years when we are in unexpected difficult economic times or having a significant unplanned expenditure, this excess fund balance could be used to keep the village at or above the 6 month reserve funding without making drastic cuts in services or personnel to deal with one or two years of financial issues. 10 Unrestricted Cash Available, January I, 2016 $13,521,248 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Unrestricted Cash Available at Year -End 6 Months Operating # of Months Reserve Village of Oak Brook 2017-2021 Five -Year Financial Plan GENERAL CORPORATE FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $23,759,255 $24,119,720 $24,054,500 $27,221,724 $24,992,040 $25,334,314 $25,663,810 18,208,175 17,433,890 18,451,755 18,147,462 18,720,794 19,575,404 20,254,006 4,844,775 4,399,600 4,701,915 5,071,805 5,520,860 5,727,350 5,783,215 706,305 2,286,230 900,830 4,002,457 750,386 31,561 (373,411) 13,521,248 13,521,248 15,212,248 15,282, 768 15,659,280 15,946,446 15,310,501 14,227,553 15,807,478 16,113,078 19,285,225 16,409,666 15,978,006 14,937,090 694,640 595,230 830,310 3,625,945 463,220 667,505 926,680 $13,532,913 $15,212,248 $15,282,768 $15,659,280 $15,946,446 $15,310,501 $14,010,410 $10,797,313 $10,797,313 $11,003,878 $11,071,704 $11,438,615 $11,937,192 $12,307,728 7.5 8.5 8.3 8.5 8.4 7.7 6.8 11 Village of Oak Brook 2017-2021 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 12 2016 2016 Description Budget Estimate 2017 2018 2019 2020 2021 General Sales Tax 12,625,000 13,046,235 13,048,000 13,243,720 13,442,376 13,644,011 13,848,672 State Income Tax 540,000 784,725 808,500 824,670 841,163 857,987 875,146 Replacement Tax 295,000 267,750 252,735 257,790 262,945 268,204 273,568 York Township Road and Bridge Tax 15,000 14,500 15,000 15,000 15,000 15,000 15,000 State Income Tax -Use Tax 173,000 187,205 189,000 192,780 196,636 200,568 204,580 Charitable Games Tax 500 600 600 600 600 600 600 Grants 22,390 24,000 12,100 15,000 15,000 15,000 15,000 Telecommunications Tax/Utility 5,500,000 5,787,985 5,638,000 5,694,380 5,751,324 5,808,837 5,866,925 Total Intergovernmental 19,170,890 20,113,000 19,963,935 20,243,940 20,525,044 20,810,208 21,099,492 Liquor License 152,000 155,000 156,000 156,000 156,000 156,000 156,000 Scavenger Licenses 7,000 8,000 8,000 8,000 8,000 8,000 8,000 Taxi Licenses 41,000 26,000 30,000 30,000 30,000 30,000 30,000 Tobacco License 1,500 1,200 1,200 1,200 1,200 1,200 1,200 Raffle Licenses 500 600 600 600 600 600 600 Building Permits 796,500 1,200,000 1,250,000 1,300,000 1,300,000 1,300,000 1,300,000 Electrical Permits 200,000 60,000 60,000 60,000 60,000 60,000 60,000 Plumbing Permits 40,000 20,000 20,000 25,000 25,000 25,000 25,000 Alarm Application Fee 36,000 30,000 30,000 30,000 30,000 30,000 30,000 Annual Alarm Permit Fee 150 150 150 150 150 150 150 Accessory Structure Permits 20,000 45,000 40,000 45,000 45,000 45,000 45,000 HVAC Permits 65,000 25,000 25,000 30,000 30,000 30,000 30,000 Demolition Permits 8,500 20,000 15,000 20,000 20,000 20,000 20,000 Application/Occupancy Fees 65,000 35,000 35,000 40,000 40,000 40,000 40,000 Miscellaneous Licenses & Permits 40,000 50,000 40,000 40,000 40,000 40,000 40,000 Solicitation Permits 500 1,000 800 800 800 800 800 Total Licenses and Permits 1,473,650 1,676,950 1,711,750 1,786,750 1,786,750 1,786,750 1,786,750 12 Village of Oak Brook 2017-2021 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 13 2016 2016 Description Budget Estimate 2017 2018 2019 2020 2021 Elevator Inspections 112,000 110,000 115,000 120,000 120,000 120,000 120,000 Zoning/Subdivision Appl. Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Plan Review Fees 60,000 22,000 20,000 20,000 20,000 20,000 20,000 Building/Inspection Fees 225,000 105,000 110,000 120,000 120,000 120,000 120,000 Ambulance Fees 620,000 700,480 714,500 721,645 728,861 736,150 743,512 Toll Road Fire Service 55,500 41,850 34,000 34,000 34,000 34,000 34,000 Special Services -EMS 6,000 5,000 5,000 5,250 5,513 5,788 6,078 Special Services -Fire 6,000 5,000 5,000 5,250 5,513 5,788 6,078 False Alarm -Fire 10,000 2,500 3,000 3,000 3,000 3,000 3,000 Compliance 20,000 10,000 15,000 15,000 15,000 15,000 15,000 Fingerprinting 4,500 2,500 3,000 3,000 3,000 3,000 3,000 Special Services -Police 80,000 125,000 125,000 131,250 137,813 144,703 151,938 Field Services -Police 500 150 250 250 250 250 250 Misc. Support Services -Police 3,500 3,500 3,500 3,500 3,500 3,500 3,500 False Alarm -Police 25,000 20,500 22,500 22,500 22,500 22,500 22,500 Eng. Plan Review & Inspection 10,000 9,000 10,000 10,000 10,000 10,000 10,000 Subdivision Review & Inspection 2,000 0 1,000 1,000 1,000 1,000 1,000 Fire Plan Review Fees 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Library Services 9,000 9,000 10,000 10,000 10,000 10,000 10,000 Bad Debt (215,000) (215,000) (215,000) (215,000) (215,000) (215,000) (215,000) Total Charges for Services 1,059,000 981,480 1,006,750 1,035,645 1,049,949 1,064,679 1,079,855 Court Fines 155,000 120,675 123,090 126,783 130,586 134,504 138,539 Village Fines 18,000 19,200 20,000 20,000 20,000 20,000 20,000 Training Reimbursement -Police 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Administrative Towing Fees 75,000 38,000 50,000 50,000 50,000 50,000 50,000 Administrative Fines 5,000 1,250 2,500 2,625 2,756 2,894 3,039 Library Fines 8,000 7,000 8,000 8,000 8,000 8,000 8,000 Interest 110,000 131,000 125,000 152,828 313,186 318,929 306,210 IMF/Franchise Fees 195,000 219,040 207,200 213,416 219,818 226,413 233,205 Rental Income 146,590 146,600 166,475 171,969 177,644 183,506 189,562 Road Maintenance Reimbursement 15,000 15,000 15,000 15,450 15,914 16,391 16,883 Miscellaneous 30,000 15,000 30,000 30,000 30,000 30,000 30,000 13 Village of Oak Brook 2017-2021 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 14 2016 2016 Description Budget Estimate 2017 2018 2019 2020 2021 Installment Contract Proceeds 0 0 0 2,721,000 0 0 0 Total Other Revenues 765,090 720,265 754,765 3,519,570 975,404 998,137 1,002,937 Transfer From Water Fund 415,720 415,720 0 0 0 0 0 Transfer From Other Funds 874,905 212,305 0 0 0 0 0 Reimbursements From Other Funds 0 0 617,300 635,819 654,894 674,540 694,777 Total Interfund Revenues 1,290,625 628,025 617,300 635,819 654,894 674,540 694,777 Total Revenue 23,759,255 24,119,720 24,054,500 27,221,724 24,992,040 25,334,314 25,663,810 14 Village of Oak Brook 2017-2021 Five -Year Financial Plan GENERAL CORPORATE FUND Long -Range Operating Budget Exceptional Charges Police Pension Contribution 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Personnel $13,648,975 $13,186,005 $13,938,310 $14,521,993 $15,275,713 $16,068,896 $16,903,625 Materials and Supplies 536,415 533,255 554,530 560,904 574,927 589,300 604,033 Operations and Contractual 4,022,785 3,714,630 3,958,915 4,019,695 4,065,099 4,166,702 4,270,844 Total Operating Budget $18,208,175 $17,433,890 $18,451,755 $19,102,592 $19,915,738 $20,824,897 $21,778,501 Adjustment for Budget Goal Attainment 293,740 293,740 $18,451,755 $18,147,462 $18,720,794 $19,575,404 $20,254,006 Exceptional Charges Police Pension Contribution $1,855,400 $1,528,215 $1,766,300 $1,830,295 $1,907,160 $1,973,590 $2,001,725 Firefighters' Pension Contribution 1,957,200 1,839,210 2,083,600 2,165,650 2,249,275 2,325,390 2,359,725 Vehicle Replacement Charges 356,810 356,810 360,410 645,860 646,175 708,770 699,965 Reimbursement to Infrastructure Fund 130,620 130,620 128,300 135,000 139,000 143,000 148,000 Transfer to Sports Core Fund 251,005 251,005 73,505 250,000 250,000 250,000 250,000 Installment Contract Debt Service 293,740 293,740 289,800 45,000 329,250 326,600 323,800 Total Exceptional Charges $4,844,775 $4,399,600 $4,701,915 $5,071,805 $5,520,860 $5,727,350 $5,783,215 Capital Improvement Program (See Schedule) $694,640 $595,230 $830,310 $3,625,945 $463,220 $667,505 $926,680 Total Budget $23,747,590 $22,428,720 $23,983,980 $26,845,212 $24,704,874 $25,970,259 $26,963,901 15 Village of Oak Brook CAPITAL REQUESTS GENERAL CORPORATE FUND 16 2016 Total Project Name 2016 Projected 2017 2018 2019 2020 2021 2017-2021 Legislative and General Management: Computer Hardware and Software 100,000 100,000 209,610 355,835 162,715 107,060 136,260 971,480 Total Program 151 100,000 100,000 209,610 355,835 162,715 107,060 136,260 971,480 Municipal Complex: Undesignated Repairs/Safety Projects 15,000 - 15,000 15,000 15,000 15,000 15,000 75,000 Police Dep. Architect/Remodeling - - - 1,700,000 - - - 1,700,000 Construction Management - 20% est. - - - 340,000 - - - 340,000 Redesign East Entrance - - - - - - 75,000 75,000 Development Services Counter - - 15,000 - - - - 15,000 BGC Roof - - - - 500,000 500,000 Server Room A/C Units - - - - - 15,000 - 15,000 Police Dep. Upstairs Carpet - - - 50,000 - - - 50,000 Police Lower Level Repeater - - - 12,000 - - - 12,000 Electrical Project 60,000 68,675 - 400,000 - - - 400,000 Village Hall Carpet Replace West Wing - - 50,000 -50,000 West Wing/Station 94 Painting 5,000 - 5,000 5,000 5,000 5,000 5,000 25,000 Galvanized Plumbing Replacement 15,000 15,000 15,000 15,000 15,000 15,000 - 60,000 Village Hall Exterior Beautification 7,500 7,500 7,500 7,500 7,500 7,500 7,500 37,500 Station 94 Humidifier/Dehumidifier 60,000 60,000 - - - - _ 0 Station 94 Apparatus Floor Patching - - 10,000 - - - - 10,000 Station 94 Reseal Apparatus Floor - - - 50,000 - - - 50,000 16 CAPITAL REQUESTS GENERAL CORPORATE FUND Station 94 Ceiling Fans - - 5,000 - - - - 5,000 Station 94 Landscaping 5,000 - - _ - - - 0 Ductwork Cleaning - - 10,000 10,000 10,000 10,000 10,000 50,000 Police Walkway Design and Installation - - - 219,000 - - - 219,000 Electric Door Strikes - - 15,000 15,000 15,000 15,000 15,000 75,000 Upper Level Bathroom Remodel 75,000 112,000 - - - - - 0 Lower Level Bathroom Remodel - - 50,000 - - - - 50,000 Irrigation System - - 15,000 - - - - 15,000 Station 93 _ Station 93 Building Needs Study - - 25,000 - - - - 25,000 Station 93 Painting Outside/Bird Proofing 15,000 - - 10,000 - - - 10,000 Station 93 Door Close Safety System - - - 40,000 - - - 40,000 Station 93 Bunk & Bathroom Remodel 60,000 - - 150,000 - - - 150,000 Station 93 Interior Painting - - - 7,500 - - - 7,500 Generator Replacement - - - - 75,000 - - 75,000 Public Works Building: Recondition/Reseal Garage Floor 25,000 20,000 25,000 25,000 25,000 - - 75,000 Salt Dome Repairs - - 30,000 - - - - 30,000 Ceiling & Lights - - 20,000 - - - - 20,000 Pressure Washer Replacement - - 15,000 - - - - 15,000 Heritage Center - HVAC, tank removal, concrete work 110,000 112,000 - - - 306,000 - 306,000 17 Village of Oak Brook CAPITAL REQUESTS GENERAL CORPORATE FUND Project Name Repoint exterior (tentative estimate) Replacement of Condenser Unit Library: New Reference Desks CCTV in Meeting Rooms Floor Retile Lobby Electrical Improvements Bathroom Remodel Office Painting Carpeting Replacement Exterior Wood Siding Maintenance Electrical Improvements Interior Lighting Change Out Total Program 421 Police: Taser Replacement Hand Gun Replacement Total Program 621 18 2016 Total 2016 Projected 2017 2018 2019 2020 2021 2017-2021 - - 25,000 25,000 25,000 25,000 - 100,000 20,000 - - - - - - 0 7,500 - 0 10,000 - 0 - - - - - - 15,000 15,000 - - - 5,000 - - - 5,000 - - - - 50,000 50,000 - - 5,000 5,000 5,000 - 15,000 - - - 50,000 - - - 50,000 - - - - - 20,000 - 20,000 - - 5,000 - - - - 5,000 - - 10,000 20,000 20,000 - - 50,000 490,000 395,175 372,500 3,176,000 217,500 433,500 692,500 4,892,000 15,240 13,685 - - - - - - - - - - - 35,000 - 35,000 15,240 13,685 - - - 35,000 - 35,000 18 CAPITAL REQUESTS GENERAL CORPORATE FUND Fire: Fire Utility Vehicle Fire Gear Replacement LDH Fire Hose Starcom Portable Radios Mobile Radios Fire Gear Dryer Office Chairs Fitness Equipment Thermal Imaging Camera Total Program 700 Stryker Power Pro XT Stretcher Zoll Monitor/Defibrillator Total Program 731 Total Aal 0 21 2017-2021 - - 160,000 - - - - 160,000 18,200 18,200 19,000 19,125 19,600 20,090 20,595 98,410 - - 9,000 - - - - 9,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 90,000 - - - - - - 12,000 12,000 - - 7,000 - - - - 7,000 - - - 5,000 - - - 5,000 - - - 7,500 7,500 7,500 7,500 30,000 - - - 7,500 - 7,500 - 15,000 36,200 36,200 213,000 57,125 45,100 53,090 58,095 426,410 18,000 17,585 - 35,200 32,585 35,200 36,985 37,905 38,855 39,825 188,770 53,200 50,170 35,200 36,985 37,905 38,855 39,825 188,770 Total General Corporate Fund 694,640 595,230 830,310 3,625,945 463,220 667,505 926,680 6,513,660 Note - Totals above include engineering costs. 19 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN HOTEL/MOTEL TAX FUND DESCRIPTION: This fund is used to account for funds collected from imposition of the Village's Hotel/Motel Tax. State law requires that for non -home rule communities this revenue must be devoted to programs and activities designed to increase tourism and overnight stays in hotels located within the Village. For 2006 and prior, most expenditures of funds from the tax were those recommended by the Hotel, Convention and Visitors Committee and specifically approval of the Village Board. Beginning in 2007, the Village Board established a Hotel Beautification District designed to improve and maintain the landscape and hardscape features in the areas served by the hotels also in order to increase overnight stays in hotels located within the Village. Village code dedicates 1% of the 3% Hotel/Motel Tax rate to funding activities of the Hotel, Convention and Visitors Committee; the remaining 2% of the 3% rate is dedicated to funding the Hotel District streetscape projects. OVERVIEW: Revenue: For 2017, revenues from the 3% Hotel/Motel Tax are projected to be $1,266,000, which is a decrease of $25,700, or 2.0% compared to the 2016 Budget. For 2018 and thereafter, revenue is projected to increase 1.0% per year, with an adjustment for the new Hyatt hotel opening in late 2017. Operations 0% Fund): For 2017, the projections reflect expenditures for marketing efforts of the Hotel, Convention and Visitors Committee, as well as payments to the DuPage Convention and Visitors Bureau equal to 25% of the first 1% of the Hotel Tax imposed. This amount is projected to be $375,460 in 2017. Thereafter, expenditures increase approximately 3.0% per year. Exceptional Charges: The Plan reflects an annual transfer to the General Corporate Fund for administrative services of $93,400 from the Hotel, Convention and Visitors Committee. 20 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN Capital Improvement Program (2% Fund): The 2017 Budget includes $1,837,500 for 22nd street (Salt Creek —1294). Design work the area of Jorie, York, and the perimeter of Oak Brook Center is budgeted for $100,000 in 2017. Pedestrian access improvements are budgeted for $100,000. Thereafter, additional outlays of specific projects are budgeted for improvements and maintenance in the Hotel Beautification District. 21 Village of Oak Brook 2017-2021 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Unrestricted Cash Available, January 1, 2016 $3,832,269 Estimated Income $1,735,100 $1,271,820 $1,288,000 $1,692,556 $1,529,473 $1,418,516 $1,431,943 Less Estimated Operating Expenses Operating Budget 399,920 451,290 375,975 392,865 401,855 410,955 420,285 Exceptional Charges 90,305 90,305 93,400 96,200 99,085 102,055 105,115 Estimated Net Operating Income 1,244,875 730,225 818,625 1,203,491 1,028,533 905,506 906,543 Add Beginning of Year Cash Balance 3,832,269 3,832,269 3,949,994 2,711,119 2,294,610 2,303,143 2,188,648 Estimated Available Funds 5,077,144 4,562,494 4,768,619 3,914,610 3,323,143 3,208,648 3,095,192 Less Capital Improvement Program 1,460,000 612,500 2,057,500 1,620,000 1,020,000 1,020,000 520,000 Estimated Unrestricted Cash Balance at Year -End $3,617,144 $3,949,994 $2,711,119 $2,294,610 $2,303,143 $2,188,648 $2,575,192 22 Village of Oak Brook 2017-2021 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Revenue Projections 23 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Hotel/Motel Tax $1,291,700 $1,241,820 $1,266,000 $1,379,000 $1,393,000 $1,407,000 $1,421,000 Grants 424,900 0 0 0 0 0 0 Interest 18,500 30,000 22,000 13,556 11,473 11,516 10,943 Miscellaneous 0 0 0 300,000 125,000 0 0 Total Revenue $1,735,100 $1,271,820 $1,288,000 $1,692,556 $1,529,473 $1,418,516 $1,431,943 23 Village of Oak Brook 2017-2021 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Long -Range Operating Budget 24 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Operations and Contractual $399,920 $451,290 $375,975 $392,865 $401,855 $410,955 $420,285 Total Operating Budget $399,920 $451,290 $375,975 $392,865 $401,855 $410,955 $420,285 Exceptional Charges Transfer to General Fund $90,305 $90,305 $93,400 $96,200 $99,085 $102,055 $105,115 Total Exceptional Charges $90,305 $90,305 $93,400 $96,200 $99,085 $102,055 $105,115 Capital Improvement Program Hotel Beautification and projects $1,460,000 $612,500 $2,057,500 $1,620,000 $1,020,000 $1,020,000 $520,000 Total Budget $1,950,225 $1,154,095 $2,526,875 $2,109,065 $1,520,940 $1,533,010 $1,045,400 24 CAPITAL REQUESTS HOTEL AND MOTEL FUND Streetscape Program (2% Portion) Median/Streetlighting Projects 22nd St. (Salt Creek -1294) 1,225,000 612,500 1,837,500 - - - - 1,837,500 Design - Jorie, York, Perimeter of OB Center 50,000 - 30,000 - - - - 30,000 Construction - Jorie, York, Perimeter of OB Centei - - 1,000,000 1,000,000 - - 2,000,000 Median Plantings - 20,000 20,000 20,000 20,000 20,000 100,000 TBD Additional projects - - - - - 1,000,000 500,000 1,500,000 Total Median/Streetlighting Projects 1,275,000 612,500 1,887,500 1,020,000 1,020,000 1,020,000 520,000 5,467,500 Pedestrian Access Projects: 1,020,000 520,000 6,237,500 Spring/Harger Connection Ph2 (Prof C) Design 10,000 - 10,000 - - - - 10,000 Spring/Harger Connection Ph2 (Proj C) Const - - 100,000 100,000 16th Street Connection (Proj A) Design 25,000 - 25,000 - - 25,000 16th Street Connection (Proj A) Const - - 250,000 - 250,000 Oak Brook Center to 16th St. Connection 125,000 125,000 - - 125,000 Clearwater, York, and 22nd Street Connection - - 10,000 - - 10,000 TBD Additional projects 25,000 - 250,000 - - - 250,000 Total Pedestrian Access Projects 185,000 170,000 600,000 - - - 770,000 Total Program 171 1,460,000 612,500 2,057,500 1,620,000 1,020,000 1,020,000 520,000 6,237,500 Total Hotel and Motel Fund 1,460,000 612,500 2,057,500 1,620,000 1,020,000 1,020,000 520,000 6,237,500 Note - Totals above include engineering costs 25 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN MOTOR FUEL TAX FUND DESCRIPTION: The Motor Fuel Tax (MFT) Fund is used to account for funds distributed to the Village by the State of Illinois pursuant to the MFT distribution formula. State law limits the use of these funds for specified purposes. This edition of the Five -Year Financial Plan continues the practice of periodically allocating MFT funds to eligible street resurfacing and reconstruction projects. OVERVIEW: Revenue: The Motor Fuel Tax is levied on a cents -per -gallon basis and is deposited into a segregated fund at the State level. From there, funds are distributed to local governments on a per -capita basis, according to a formula and based on the last certified census. There was no budget for 2016 due to uncertainty of collections from the State. Actual collections in 2016 are projected to be $201,370. Revenues for 2017 are budgeted at $206,200, an increase of $4,830 over projected 2016 collections. For years, 2018 — 2021 revenues are projected to start receiving payments from the State and increase 2.0% each year. Exceptional Charges: There is a transfer budgeted to the Infrastructure Fund of $561,765 in 2017 and $750,000 in 2019 to supplement the road improvement program in those years. 26 Unrestricted Cash Available, January 1, 2016 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $1,215,112 Village of Oak Brook 2017-2021 Five -Year Financial Plan MOTOR FUEL TAX FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $2,500 $208,370 $209,200 $212,202 $217,470 $219,098 $224,569 0 0 0 0 0 0 0 950,000 695,290 561,765 0 750,000 0 0 (947,500) (486,920) (352,565) 212,202 (532,530) 219,098 224,569 1,215,112 1,215,112 728,192 375,627 587,829 55,299 274,396 267,612 728,192 375,627 587,829 55,299 274,396 498,966 0 0 0 0 0 0 0 $267,612 $728,192 $375,627 $587,829 $55,299 $274,396 $498,966 27 Motor Fuel Tax Allotments Interest Total Revenue Village of Oak Brook 2017-2021 Five -Year Financial Plan MOTOR FUEL TAX FUND Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $0 $201,370 $206,200 $210,324 $214,530 $218,821 $223,198 2,500 7,000 3,000 1,878 2,939 276 1,372 $2,500 $208,370 $209,200 $212,202 $217,470 $219,098 $224,569 28 Village of Oak Brook 2017-2021 Five -Year Financial Plan MOTOR FUEL TAX FUND Long -Range Operating Budget 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Exceptional Charges Transfer to Infrastructure Fund $950,000 $695,290 $561,765 $0 $750,000 $0 $0 Total Exceptional Charges $950,000 $695,290 $561,765 $0 $750,000 $0 $0 29 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN INFRASTRUCTURE FUND DESCRIPTION: The Infrastructure Fund was established to separately account for revenues and expenditures related to certain categories of capital projects including street resurfacing/reconstruction, safety pathways and drainage projects. Due to statutory restrictions on use, beginning in 2005 the Village's non -home rule sales tax of 0.25% (authorized by referendum in 2004) became the major source of funding for this Fund. In April, 2007 a second referendum was passed and the rate of tax increased to 0.50% effective January 1, 2008 (collections began in April, 2008). Periodic transfers from the Motor Fuel Tax Fund have been made in order to supplement the roadway maintenance program. In 2005 and after, most operating costs of the Public Works and Engineering Departments have been shifted to this fund. OVERVIEW: Revenue from the Village's Non -Home Rule Sales Tax is projected at $6.0 million for 2017, which represents a slight increase from the 2016 budget and flat from the 2016 projected amount. As is the case with the General Sales Tax, 20% of the incremental Non -Home Rule Sales Taxes generated by the Promenade Development are required to be deposited in the Promenade Special Tax Allocation Fund. Thereafter, for 2018 — 2021 the revenues are estimated to grow approximately 1.5% per year (See GENERAL ASSUMPTIONS). Transfers from the Motor Fuel Tax Fund are reflected in 2017 and 2019 in order to supplement the roadway maintenance program. Reimbursements from the General Corporate Fund are reflected in order to allocate costs (mostly administrative) that are funded by the Infrastructure Fund that relate to activities in these funds. Operations: The 2017 Budget includes the outsourcing of the Village project engineering functions. The 2017 Budget also includes the addition of a second part-time Permit Coordinator position. Capital Improvements: The 2017 Street Improvement project will occur for approximately $890,000 including engineering. Designs for 2018 Street Improvement Project, 2017 York Road STP Resurfacing Project and 2017 Bridge Improvements Project (various non-Tollway bridges) are budgeted for approximately $860,000. 30 Village of Oak Brook 2017-2021 Five -Year Financial Plan INFRASTRUCTURE FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Unrestricted Cash Available, January 1, 2016 $5,623,289 Estimated Income $7,005,035 $6,915,365 $6,752,900 $6,272,118 $7,114,092 $6,456,551 $6,553,593 Less Estimated Operating Expenses Operating Budget 3,036,235 2,831,370 2,802,295 2,762,600 2,817,684 2,873,788 2,930,924 Exceptional Charges 316,625 316,625 323,125 345,345 341,241 360,179 369,585 Estimated Net Operating Income 3,652,175 3,767,370 3,627,480 3,164,172 3,955,167 3,222,585 3,253,084 Add Beginning of Year Cash Balance 5,623,289 5,623,289 4,849,254 6,726,734 4,446,861 1,096,483 142,468 Estimated Available Funds 9,275,464 9,390,659 8,476,734 9,890,906 8,402,028 4,319,068 3,395,552 Less Capital Improvement Program 4,541,405 4,541,405 1,750,000 5,444,045 7,305,545 4,176,600 762,320 Estimated Unrestricted Cash Balance at Year -End $4,734,059 $4,849,254 $6,726,734 $4,446,861 $1,096,483 $142,468 $2,633,232 31 Village of Oak Brook 2017-2021 Five -Year Financial Plan INFRASTRUCTURE FUND Revenue Projections 32 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Non -Home Rule Sales Tax $5,835,000 $5,997,040 $5,982,000 $6,071,730 $6,162,806 $6,255,248 $6,349,077 Grants 0 0 0 0 p p p Interest 25,000 38,000 27,500 13,453 8,894 3,289 712 Transfer From Motor Fuel Tax Fund 950,000 695,290 561,765 0 750,000 0 0 Reimbursements From Other Funds 180,035 180,035 176,635 181,934 187,392 193,014 198,804 Miscellaneous 15,000 5,000 5,000 5,000 5,000 5,000 5,000 Total Revenue $7,005,035 $6,915,365 $6,752,900 $6,272,118 $7,114,092 $6,456,551 $6,553,593 32 Personnel Materials and Supplies Operations and Contractual Capital Outlay (not C.I.P.) Total Operating Budget Adjustment for Budget Goal Attainment Exceptional Charges Vehicle Replacement Charges Transfer to Other Funds Total Exceptional Charges Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 2017-2021 Five -Year Financial Plan INFRASTRUCTURE FUND Long -Range Operating Budget 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $1,641,725 $1,663,825 $1,474,390 $1,527,356 $1,582,371 $1,639,519 $1,698,887 371,070 207,575 351,095 359,872 368,869 378,091 387,543 953,590 934,065 946,810 970,480 994,742 1,019,611 1,045,101 69,850 25,905 30,000 20,000 20,000 20,000 20,000 3,036,235 2,831,370 2,802,295 2,877,709 2,965,983 3,057,221 3,151,531 2,802,295 2,762,600 2,817,684 2,873,788 2,930,924 161,625 161,625 160,625 174,720 162,085 172,065 172,065 155,000 155,000 162,500 170,625 179,156 188,114 197,520 316,625 316,625 323,125 345,345 341,241 360,179 369,585 4,541,405 4,541,405 1,750,000 5,444,045 7,305,545 4,176,600 762,320 $7,894,265 $7,689,400 $4,875,420 $8,551,990 $10,464,470 $7,410,567 $4,062,829 33 Village of Oak Brook 2017-2021 Five -Year Financial Plan INFRASTRUCTURE FUND Capital Improvement Program 34 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Roadway Improvements Street Resurfacing/Reconstruction 4,441,405 $4,441,405 1,650,000 $5,369,045 $7,230,545 $4,101,600 $687,320 Street Cracksealing 100,000 100,000 100,000 75,000 75,000 75,000 75,000 Total $4,541,405 $4,541,405 $1,750,000 5,444,045 7,305,545 $4,176,600 $762,320 34 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN PROMENDADE SPECIAL TAX ALLOCATION FUND DESCRIPTION: The Promenade Special Tax Allocation Fund was established in 2006 as a result of a redevelopment agreement approved by the Village Board that provides for Tax Increment Financing (T.I.F.) for certain infrastructure improvements for the Promenade Development. As provided for in the redevelopment agreement, the Village has issued a limited obligation note of $4.25 million bearing interest at 8%. The note is secured by 100% of the incremental real estate taxes and 20% of the incremental sales taxes generated by the Promenade Development. The note is not a general obligation of the Village and the Village's liability is limited to the pledge of incremental revenues previously noted for a period not to exceed 15 years. OVERVIEW: Revenue Revenues from the incremental real estate tax revenue generated by the development are projected based on a 1.5% increase from the amount received for 2016. For 2018 and thereafter, real estate tax revenues are projected based on increasing at 1.5%. Sales tax receipts from the General Fund and Infrastructure Fund is included based on 20% of the expected General Sales Tax and Non -Home Rule Sales Tax expected to be generated from the development. Exceptional Charges Exceptional charges consist of debt service on the $4.25 million limited obligation notes that were issued in early 2008. The notes provide in November each year the Village is to notify the holders of the notes as to the amount funds expected to be on hand to fund debt service for the subsequent year. Based on the amounts projected to be available for the succeed year debt service payments are to scheduled to be applied to (1) interest on past due interest, (2) current interest, and (3) repayment of principal. For 2017 it is projected that current interest payments will be made and payments of the principal amount. 35 Unrestricted Cash Available, January " $230,211 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2017-2021 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $427,015 $454,030 $455,600 $460,660 $465,778 $470,955 $476,192 3,800 3,940 4,070 4,172 4,276 4,383 4,493 430,000 435,220 454,380 459,820 463,660 479,280 486,170 (6,785) 14,870 (2,850) (3,332) (2,158) (12,708) (14.471) 230,211 230,211 245,081 242,231 238,899 236,741 224,034 223,426 245,081 242,231 238,899 236,741 224,034 209,563 0 0 0 0 0 0 0 $223,426 $245,081 $242,231 $238,899 $236,741 $224,034 $209,563 36 Real Estate Taxes Sales Tax Interest Total Revenue Village of Oak Brook 2017-2021 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $330,000 $354,830 $355,000 $358,550 $362,136 $365,757 $369,414 97,000 99,000 100,500 102,008 103,538 105,091 106,667 15 200 100 103 105 108 110 $427,015 $454,030 $455,600 $460,660 $465,778 $470,955 $476,192 37 Village of Oak Brook 2017-2021 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Long -Range Operating Budget 38 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Operations and Contractual $3,800 $3,940 $4,070 $4,172 $4,276 $4,383 $4,493 Total Operating Budget 3,800 3,940 4,070 4,172 4,276 4,383 4,493 Exceptional Charges Debt Service Interest 290,000 290,220 277,380 262,820 246,660 228,380 207,770 Debt Service Principal 140,000 145,000 177,000 197,000 217,000 250,900 278,400 Total Exceptional Charges 430,000 435,220 454,380 459,820 463,660 479,280 486,170 Total Budget $ 433,800 $ 439,160 $ 458,450 $ 463,992 $ 467,936 $ 483,663 $ 490,663 38 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN WATER FUND DESCRIPTION: The water utility is one of two large enterprises operated by the Village. It serves approximately 5,200 customers, nearly 2,000 of which are located outside the corporate limits of Oak Brook. The Water Fund supports both operations and capital improvements to the water system. The Water Fund is considered an enterprise fund and is operated on a self-supporting basis. OVERVIEW: Revenue: Revenue from the sale of water is based on an average of 900 million gallons billed per year and usage is projected to remain flat in order to mitigate fluctuations due to weather. In late 2015, the Village Board conducted a comprehensive water rate study, which resulted in increasing the water rates by 10% and fixed charges by 36% for 2016 in order to support the operating and maintenance of the system as well as capital improvements. Subsequent increases range from 7% to 10%. The 2017-2021 Five Year Plan reflects rate increases as proposed in the water rate study in order to fund expected long-term capital outlays due to the aging of the system and an estimated 5% rate increase from the City of Chicago to the DuPage Water Commission. Operations: The cost to DuPage Water Commission is reflective in the 2017 budget at $5.7 million and 5% increase in years 2018 — 2021. Ca itp al Improvements: The capital improvement program reflects a focus on water main replacement for the next twenty years. 39 Village of Oak Brook 2017-2021 Five -Year Financial Plan WATER FUND Summary 40 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Unrestricted Cash Available, January 1, 2016 $1,473,811 Estimated Income $8,368,500 $8,726,400 $9,345,500 $10,123,216 $10,972,695 $11,907,880 $12,955,540 Less Estimated Operating Expenses Operating Budget 1,667,520 1,658,575 1,711,935 1,722,545 1,768,497 1,815,573 1,863,793 Exceptional Charges 6,008,065 5,894,970 6,143,170 6,443,476 6,756,068 7,082,729 7,423,720 Estimated Net Operating Income 692,915 1,172,855 1,490,395 1,957,195 2,448,130 3,009,578 3,668,027 Add Beginning of Year Cash Balance 1,473,811 1,473,811 2,461,266 716,651 1,903,886 1,754,502 2,481,559 Estimated Available Funds 2,166,726 2,646,666 3,951,661 2,673,846 4,352,016 4,764,079 6,149,586 Less Capital Improvement Program 185,400 185,400 3,235,010 769,960 2,597,514 2,282,520 270,000 Estimated Unrestricted Cash Balance at Year -End $1,981,326 $2,461,266 $716,651 $1,903,886 $1,754,502 $2,481,559 $5,879,586 40 Village of Oak Brook 2017-2021 Five-Year Financial Plan WATER FUND Revenue Projections 41 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Water Sales $8,180,000 $8,471,500 $9,143,000 $9,921,000 $10,771,000 $11,698,000 $12,711,000 Unmetered Sales 25,000 30,000 25,000 25,000 25,000 25,000 25,000 Connection Fees 30,000 70,000 30,000 30,000 30,000 30,000 30,000 Meter Fees 27,000 25,000 25,000 25,000 25,000 25,000 25,000 Special Services 30,000 30,700 31,000 31,930 32,888 33,875 34,891 Fire Service Charge 0 12,000 10,000 0 0 0 0 Plan Review Fees 2,000 2,200 2,000 2,000 2,000 2,000 2,000 Inspection Fees 4,500 5,000 4,500 4,500 4,500 4,500 4,500 Interest 10,000 10,000 10,000 18,786 17,307 24,506 58,149 Miscellaneous 60,000 70,000 65,000 65,000 65,000 65,000 65,000 Total Revenue $8,368,500 $8,726,400 $9,345,500 $10,123,216 $10,972,695 $11,907,880 $12,955,540 41 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Adjustment for Budget Goal Attainment Exceptional Charges DWC Fixed and O & M Charges Reimbursement To General Corporate Fund Vehicle Replacement Charges Total Exceptional Charges Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 2017-2021 Five -Year Financial Plan WATER FUND Long -Range Operating Budget 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 67,750 77,810 $812,125 $820,915 $835,110 $872,690 $911,961 $952,999 $995,884 74,545 65,550 70,660 72,780 74,963 77,212 79,528 780,850 772,110 806,165 830,350 855,260 880,918 907,346 $1,667,520 $1,658,575 $1,711,935 $1,775,820 $1,842,185 $1,911,130 $1,982,758 $1,711,935 $1,722,545 $1,768,497 $1,815,573 $1,863,793 $5,516,595 $5,403,500 $5,663,760 423,720 423,720 401,600 67,750 67,750 77,810 $6,008,065 $5,894,970 $6,143,170 $5,946,948 $6,244,295 $6,556,510 $6,884,336 413,648 426,057 438,839 452,004 82,880 85,715 87,380 87,380 $6,443,476 $6,756,068 $7,082,729 $7,423,720 $185,400 $185,400 $3,235,010 $769,960 $2,597,514 $2,282,520 $270,000 $7,860,985 $7,738,945 $11,090,115 $8,935,981 $11,122,079 $11,180,822 $9,557,513 42 CAPITAL REQUESTS WATER FUND 43 2016 Total Project Name 2016 Projected 2017 2018 2019 2020 2021 2017-2021 Distribution Improvements: Water System Controls Radio Upgrade - - 115,000 - 115,000 Replacement Water Meters 185,400 185,400 50,000 - 50,000 Total Program 351 185,400 185,400 165,000 - - - - 165,000 New Water Meters and Radio Collectors - - 2,500,000 20,000 20,000 20,000 20,000 2,580,000 Install Master Meters - 340,010 250,000 250,000 250,000 250,000 1,340,010 Luthin Road Engineering and Construction - 20,000 499,960 - - - 519,960 Control Valve Reservoir A - - 150,000 - - - - 150,000 Generator Reservoir B - - 80,000 - - - - 80,000 Concord/Ivy/Devonshire Watermain - - - 2,327,514 - - 2,327,514 Charleton/Kimberly, Pembroke/Shelburne V - - - - - 2,012,520 - 2,012,520 Total Program 451 - - 31090,010 769,960 2,597,514 2,282,520 270,000 9,010,004 Total Water Fund 185,400 185,400 3,255,010 769,960 2,597,514 2,282,520 270.000 9.175.004 43 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND DESCRIPTION: The Oak Brook Sports Core is the other large enterprise operated by the Village. The Sports Core Fund supports the entire operation including uses of the Sports Core's fields and forest areas, the Oak Brook Golf Club, the Oak Brook Bath and Tennis Club (all available for use by the general public) and food and beverage services at the various Sports Core venues. It is considered an enterprise fund since the majority of its revenues are derived from user fees. In order to make clear the specific designation of certain resources, the Sports Core Fund is broken down into three segments: Sports Core Operations, the Golf Surcharge Account and the Capital Improvement Account. The Sports Core Fund - Consolidated presentation brings all of the parts together. OVERVIEW: For many years it has been the goal of the Village to operate the Sports Core on a self-sufficient basis; that is, it should be 100% supported by user fees. Based on projections contained in this document, revenues are expected to cover 90% of operating expenses. A subsidy from the General Corporate Fund ($73,505), Infrastructure Fund ($24,000), and Water Fund ($8,000) is included in this plan for capital needs and operating expenses, including $50,000 for polo. The plan also includes a General Fund subsidy of $250,000 in years 2018 — 2021. FUTURE CONSIDERATIONS: Although the future projections are encouraging, favorable operating results of the Sports Core Fund are largely dependent on favorable weather, annual increases in user fee revenue, and improved financial results of the Food and Beverage operations. Capital improvements completed over the past several years were planned with a view toward making more favorable operating results possible on an annual basis. 44 Cash Available, January 1, 2016 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Estimated Cash Balance at Year -End $358,390 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $3,414,165 $3,607,225 $3,377,485 $3,629,319 $3,707,034 $3,787,702 $3,870,904 3,166,745 3,129,285 3,151,485 3,262,173 3,381,265 3,504,847 3,633,100 0 0 0 0 0 0 0 247,420 477,940 226,000 367,146 325,769 282,855 237,804 358,390 358,390 627,590 627,590 554,626 599,395 656,250 605,810 836,330 853,590 994,736 880,395 882,250 894,054 210,000 208,740 226,000 440,110 281,000 226,000 321,000 $395,810 $627,590 $627,590 $554,626 $599,395 $656,250 $573,054 45 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Sports Core Operations $3,302,665 $3,494,225 $3,264,985 $3,517,319 $3,595,534 $3,676,202 $3,759,404 Golf Surcharge 111,500 113,000 112,500 112,000 111,500 111,500 111,500 Total $3,414,165 $3,607,225 $3,377,485 $3,629,319 $3,707,034 $3,787,702 $3,870,904 46 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Long -Range Operating Budget Capital Improvement Program Sports Core Operations 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Personnel $1,494,805 $1,540,885 $1,609,185 $1,681,598 $1,757,270 $1,836,347 $1,918,983 Materials and Supplies 677,230 672,355 700,870 718,392 736,352 754,760 773,629 Operations and Contractual 1,200,910 1,122,245 1,047,630 1,068,383 1,093,843 1,119,939 1,146,687 Other (206.200) (200.200) (20 200) (206.200) (206,200) (200.200) (206.20O} Total $3,166,745 $3,129,285 $3,151,485 $3,262,173 $3,381,265 $3,504,847 $3,633,100 Capital Improvement Program Sports Core Operations 135,000 133,740 226,000 390,110 281,000 226,000 321,000 Golf Surcharge 75,000 75,000 0 50,000 0 0 0 Total $210,000 $208,740 $226,000 $440,110 $281,000 $226,000 $321,000 Total Budget $3,376,745 $3,338,025 $3,377,485 $3,702,283 $3,662,265 $3,730,847 $3,954,100 47 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Operations DESCRIPTION: The Sports Core Fund Operations presentation combines the operating projections for the Golf Club, Bath and Tennis Club, Sports Core Food and Beverage operations, and open fields operations. It also includes capital expenditures for equipment and similar purposes not assigned to the Golf Surcharge Account. OVERVIEW: Revenue: The total number of Golf Club members is projected at 142 throughout the planning period. For years 2018 - 2021, memberships are to remain flat and membership fees are increased 3% per year. Daily greens fees increase $.50 to $1.00 per round per year. Other revenues are adjusted consistent with market factors. Membership revenue for the Bath & Tennis Club is budgeted to increase 26.2% over the 2016 budgeted amounts. In 2018 and thereafter, a 3% increase in the number of members is included as well as a $25 annual increase in rates for all membership categories. Food and Beverage revenue is budgeted to increase by $12,300, or 2.4%, in 2017 compared to the 2016 budget. In 2018 and thereafter, rental income revenue is projected to increase 5%. Operations: The Bath and Tennis Clubhouse will continue to market the preferred caterer (partner) concept to our wedding and special event clients. Capital Improvements: The capital improvement program in the Sports Core Fund Operations presentation reflects an ongoing program of maintaining existing equipment and facilities. The 2017 budget includes $226,000 in capital improvements. 48 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Summary 49 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Unrestricted Cash Available, January 1, 2016 $85,560 Estimated Income $3,302,665 $3,494,225 $3,264,985 $3,517,319 $3,595,534 $3,676,202 $3,759,404 Less Estimated Operating Expenses Operating Budget 3,166,745 3,129,285 3,151,485 3,262,173 3,381,265 3,504,847 3,633,100 Exceptional Charges 0 0 0 0 0 0 0 Estimated Net Operating Income 135,920 364,940 113,500 255,146 214,269 171,355 126,304 Add Beginning of Year Cash Balance 85,560 85,560 316,760 204,260 69,296 2,565 (52,080) Estimated Available Funds 221,480 450,500 430,260 459,406 283,565 173,920 74,224 Less Capital Improvement Program 135,000 133,740 226,000 390,110 281,000 226,000 321,000 Estimated Unrestricted Cash Balance at Year -End 86,480 316,760 204,260 69,296 2,565 (52,080) (246,776) 49 Bath & Tennis Club: General Administration Miscellaneous Transfer From General Fund Transfer From Infrastructure Fund Transfer From Water Fund Swimming Membership Allocation Swim Fees Tennis Membership Allocation Tennis Lessons and Programs Beverage & Pro Shop Revenue Miscellaneous Open Fields Field Rental Sponsorships, Memberships, & Admissions Total Bath & Tennis Club Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2020 2021 $200 $100 $200 $200 $200 $200 $200 251,005 251,005 73,505 250,000 250,000 250,000 250,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 138,270 142,340 246,830 254,235 261,862 269,718 277,809 32,760 32,895 72,500 74,675 76,915 79,223 81,599 78,110 89,070 26,250 27,038 27,849 28,684 29,545 33,850 23,300 51,750 53,303 54,902 56,549 58,245 0 0 300 309 318 328 338 200 215 0 0 0 0 0 265,000 286,000 265,000 272,950 281,139 289,573 298,260 180,000 185,200 180,000 180,000 180,000 180,000 180,000 $1,011,395 $1,047,795 $948,335 $1,144,709 $1,165,184 $1,186,274 $1,207,996 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Food & Beverage: Clubhouse Food & Beverage B&T Membership Allocation 0 0 4,500 4,635 4,774 4,917 5,065 Rental Income 160,000 140,000 165,000 173,250 181,913 191,008 200,559 Miscellaneous 0 5 0 0 0 0 0 Poolside Grill 232,000 270,000 255,250 255,250 255,250 255,250 255,250 Food Sales 41,000 38,025 42,000 43,260 44,558 45,895 47,271 Beverage/Liquor Sales 17,500 16,685 19,000 19,570 20,157 20,762 21,385 Golf Club Lounge Total Golf Club $1,771,220 $1,895,615 $1,784,300 $1,820,990 $1,858,716 $1,897,507 Food Sales 112,350 112,350 112,350 115,721 119,192 122,768 126,451 Beverage/Liquor Sales 180,000 230,000 180,000 185,400 190,962 196,691 202,592 Candy/Cigarette Sales 9,200 13,750 9,500 9,785 10,079 10,381 10,692 Total Food & Beverage $520,050 $550,815 $532,350 $551,621 $571,634 $592,421 $614,014 Golf Club: Memberships $167,150 $180,665 $166,000 $170,980 $176,109 $181,393 $186,834 Golf Fees 838,000 895,000 840,000 865,200 891,156 917,891 945,427 Merchandise Sales 195,650 196,400 195,500 195,500 195,500 195,500 195,500 Driving Range Fees 232,000 270,000 255,250 255,250 255,250 255,250 255,250 Cart Rental Fees 335,600 350,600 325,500 332,010 338,650 345,423 352,332 Miscellaneous 2,820 2,950 2,050 2,050 2,050 2,050 2,050 Total Golf Club $1,771,220 $1,895,615 $1,784,300 $1,820,990 $1,858,716 $1,897,507 $1,937,394 Total Sports Core Operations $3,302,665 $3,494,225 $3,264,985 $3,517,319 $3,595,534 $3,676,202 $3,759,404 51 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Long -Range Operating Budget Capital Improvement Program (See Schedule) 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Personnel $1,494,805 $1,540,885 $1,609,185 $1,681,598 $1,757,270 $1,836,347 $1,918,983 Materials and Supplies 677,230 672,355 700,870 718,392 736,352 754,760 773,629 Operations and Contractual 1,200,910 1,122,245 1,047,630 1,068,383 1,093,843 1,119,939 1,146,687 Other (206.200) (206200) (206.200) (206.200) (206.200206,200` (-. r (206.00) Total $3,166,745 $3,129,285 $3,151,485 $3,262,173 $3,381,265 $3,504,847 $3,633,100 Capital Improvement Program (See Schedule) $135,000 $133,740 $226,000 $390,110 $281,000 $226,000 $321,000 Total Budget $3,301,745 $3,263,025 $3,377,485 $3,652,283 $3,662,265 $3,730,847 $3,954,100 52 Village of Oak Brook CAPITAL REQUESTS SPORTS CORE FUND 2016 Project Name 2016 Projected 2017 Bath & Tennis General Operations: New Sign on 31st Street B&T Clubhouse Front Entrance Redesif B&T Clubhouse Exterior Painting B&T Clubhouse Interior Painting B&T A/C Unit B&T Clubhouse Roof Scuppers Total Program 811 Total 2018 2019 2020 2021 2017-2021 - 15,000 - - - - 15,000 - - - - 25,000 25,000 - - - 30,000 - 30,000 - - - 10,000 - 10,000 - - - 25,000 25,000 - 20,000 - - - 20,000 15,000 20,000 - 40,000 50,000 125,000 Bath & Tennis Club: HVAC Unit - 24,200 Wading Pool Improvements - - Pool Lounge Chairs - - Pool Painting/Repairs 15,500 15,500 Pool Deck Refurbish 10,000 - 1m Dive Stand and Fulcrum - - 3m Dive Stand and Fulcrum - - Slide - - Pool Awning Replacement - - Pool Painting - - 25,000 - - - - 25,000 6,000 6,000 6,000 6,000 6,000 30,000 - 17,500 - - - 17,500 - 5,610 - - - 5,610 - 15,000 - - - 15,000 - 10,000 10,000 - - 20,000 - - 10,000 - - 10,000 Total Program 812 25,500 39,700 31,000 54,110 26,000 6,000 6,000 123,110- 53 Village of Oak Brook CAPITAL REQUESTS SPORTS CORE FUND Food and Beverage: New Carpeting and Dance Floor - Oak I - B&T Clubhouse Faux Stone/Brick - Light Fixtures - Oak Brook Room - Fans - Oak Brook Room - Dishwasher Replacement - B&T Clubhouse Bar Update - B&T Clubhouse Furniture - Saddle Room Floor Replacement - B&T Clubhouse Front Entrace Bird Nett - B&T Clubhouse Hot Water Heater - Kitchen Equipment Replacement - B&T Clubhouse Entrance to Pond Roor - 20,000 - - - - 20,000 15,000 - - - - 15,000 5,000 - - - 5,000 - 5,000 - - - 5,000 - 25,000 - - - 25,000 - - 20,000 - - 20,000 10,000 - - 10,000 - - - - - 20,000 20,000 - - - 15,000 - 15,000 - 15,000 - 15,000 - 20,000 - 20,000 - - - 10,000 - - 10,000 54 2016 Total Project Name 2016 Projected 2017 2018 2019 2020 2021 2017-2021 Fencing for Courts - - - - 20,000 - 20,000 40,000 Total Program 813 - - - - 20,000 - 20,000 40,000 Drainage Project 10,000 12,000 - - - _ - Soccer Building Siding - - 15,000 15,000 15,000 - - 45,000 Total Program 816 10,000 12,000 15,000 15,000 15,000 - - 45,000 Food and Beverage: New Carpeting and Dance Floor - Oak I - B&T Clubhouse Faux Stone/Brick - Light Fixtures - Oak Brook Room - Fans - Oak Brook Room - Dishwasher Replacement - B&T Clubhouse Bar Update - B&T Clubhouse Furniture - Saddle Room Floor Replacement - B&T Clubhouse Front Entrace Bird Nett - B&T Clubhouse Hot Water Heater - Kitchen Equipment Replacement - B&T Clubhouse Entrance to Pond Roor - 20,000 - - - - 20,000 15,000 - - - - 15,000 5,000 - - - 5,000 - 5,000 - - - 5,000 - 25,000 - - - 25,000 - - 20,000 - - 20,000 10,000 - - 10,000 - - - - - 20,000 20,000 - - - 15,000 - 15,000 - 15,000 - 15,000 - 20,000 - 20,000 - - - 10,000 - - 10,000 54 CAPITAL REQUESTS SPORTS CORE FUND 2016 - Total 2016 Projected 2017. 2018 _ 019 2017-2021 B&T Clubhouse Bathrooms - - - - - - 15,000 15,000 Total Program 821 - - 35,000 35,000 40,000 50,000 35,000 195,000 Golf Club: Exterior Staining - - - 15,000 - - - 15,000 Outdoor Furniture - - 35,000 - - - - 35,000 Indoor Furniture - - 25,000 - - - - 25,000 Interior Flooring - - 25,000 - - - - 25,000 Kitchen Dishwasher 15,000 - - - _ _ _ - Back Patio - - - 150,000 - - - 150,000 Interior Design Improvements - - 15,000 - - - - 15,000 Parking Lot Renovation - - - - 50,000 - - 50,000 New Lighting - Pro Shop - - - - - 25,000 - 25,000 HVAC Improvements - - - - - - 45,000 45,000 Total Program 831 15,000 - 100,000 165,000 50,000 25,000 45,000 385,000 Ball Dispenser Replacement 7,500 6,165 - - - - - _ Picker Cart Replacement - - - - 15,000 - - 15,000 Total Program 832 7,500 6,165 - - 15,000 - - 15,000 Battery Replacement - Golf Carts 50,000 51,080 55 CAPITAL REQUESTS SPORTS CORE FUND W -e. - New Golf Cart Fleet Total Program 833 Tractors/Mowers Dump Truck Seeder Deep Tine Aerifier Sprayer Spinkler Pipe Utility Vehicle (2) Greens Mower Fairway Mower Total Program 834 201 2016 Projected -2017-- Total 017 TotaI - 70,000 70,000 70,000 210,000 50,000 51,080 - - 70,000 70,000 70,000 210,000 - - 30,000 50,000 - - - 80,000 - - - 20,000 - - - 20,000 - - - 31,000 - - - 31,000 - - - - - 35,000 - 35,000 - - - - 45,000 - - 45,000 - 5,040 - - - - - - 40,000 40,000 27,000 19,755 - - - - - - - 55,000 55,000 27,000 24,795 30,000 101,000 45,000 35,000 95,000 306,000 Total Sports Core Operations 135,000 133,740 226,000 390,110 281,000 226,000 321,000 1,444,110 56 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Golf Surcharge Account DESCRIPTION: The Golf Surcharge Account is the repository for revenues received from the $3.00 per round surcharge levied on every round of golf played at the Oak Brook Golf Club. Surcharge revenues are reserved for golf course improvements and for restoration of flood damage to the course, should it be necessary in the future. OVERVIEW: Revenue: Revenue is projected based on the $3.00 surcharge applied to 36,665 rounds per year. Capital Improvements: No capital improvements are included in the 2017 budget. $50,000 is planned in 2018 to rebuild the practice chipping green. 57 Restricted Cash Available, January 1, 2016 $272,830 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Estimated Restricted Cash Balance at Year -End Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Summary 2016 Budget 2016 Estimate 2017 2018 0 0 $111,500 $113,000 $112,500 $112,000 2019 2020 2021 $111,500 $111,500 $111,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 111,500 113,000 112,500 112,000 111,500 111,500 111,500 272,830 272,830 310,830 423,330 485,330 596,830 708,330 384,330 385,830 423,330 535,330 596,830 708,330 819,830 75,000 75,000 0 50,000 0 0 0 $309,330 $310,830 $423,330 $485,330 $596,830 $708,330 $819,830 58 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Revenue Projections Account 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Golf Surcharge $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 Interest 1,500 3,000 2,500 2,000 1,500 1,500 1,500 Total Revenue $111,500 $113,000 $112,500 $112,000 $111,500 $111,500 $111,500 59 Village of Oak Brook 2017-2021 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Long -Range Operating Budget Exceptional Charges 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Capital Improvement Program (See schedule) $75,000 $75,000 $0 $50,000 $0 $0 $0 Total Budget $75,000 $75,000 $0 $50,000 $0 $0 $0 Village of Oak Brook CAPITAL REQUESTS SPORTS CORE FUND 61 2016 Total Project Name 2016 Projected 2017 2018 2019 2020 2021 2017-2021 Drainage Project 75,000 75,000 50,000 50,000 Total Program 844 75,000 75,000 - 50,000 - - - 50,000 Total Golf Surcharge 75,000 75,000 - 50,000 - - - 50,000 61 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN SELF-INSURANCE FUND DESCRIPTION: The Self -Insurance Fund is an internal service fund used for funding the Village's employee welfare benefit programs, including the self- insured medical and dental plans and group life and accidental death insurance coverage. These programs also are made available to employees of the Oak Brook Park District, retired Village employees and separated employees and their dependents pursuant to COBRA regulations. OVERVIEW: Revenue: Revenue comes principally from charges to other funds, through the budgets of departments where plan participants are employed, charges to the Oak Brook Park District, charges to retirees, and charges to COBRA participants. The Plan also reflects increased participant contribution to the cost of health and dental insurance for all covered Village employees. Revenue from equivalent premiums is projected to increase at a rate sufficient to fund projected expenses. Operations: Since 2012, the amount expended for health insurance claims has moderated due primarily to a change in the third party administrator to Blue Cross/Blue Shield and alternative plan offerings. The Village offers a PPO, HMO alternative and High Deductible plans to all employees. For 2017, claims are projected based on various rates used to set equivalent premiums. For 2018 and beyond, a claims inflation factor of 8% per year has been used. Other expenses, including reinsurance costs, are also projected to increase 3% to 5% annually, beginning in July 2017. FUTURE CONSIDERATIONS: The future of health insurance is changing and the Affordable Care Act (ACA) presents the Village a number of challenges in forecasting and budgeting for federally mandated increases in benefits and taxes. We will continue to conservatively budget in order to prepare for unforeseen circumstances related to the on-going implementation of the ACA. 62 Village of Oak Brook 2017-2021 Five -Year Financial Plan SELF-INSURANCE FUND Summary 63 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Unrestricted Cash Available, January 1, 2016 $406,555 Estimated Income $2,991,035 $2,988,505 $3,203,000 $3,446,444 $3,708,720 $3,991,786 $4,297,347 Less Estimated Operating Expenses Operating Budget 0 0 0 0 0 0 0 Exceptional Charges 2,977,500 2,933,740 3,238,150 3,469,195 3,718,430 3,986,395 4,274,330 Estimated Net Operating Income 13,535 54,765 (35,150) (22,751) (9,710) 5,391 23,017 Add Beginning of Year Cash Balance 406,555 406,555 461,320 426,170 403,419 393,709 399,100 Estimated Available Funds 420,090 461,320 426,170 403,419 393,709 399,100 422,117 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Unrestricted Cash Balance at Year -End $420,090 $461,320 $426,170 $403,419 $393,709 $399,100 $422,117 63 Village Contributions Participant Contributions Park District Contributions Retiree Contributions Interest Transfer from General Corporate Fund Total Revenue Village of Oak Brook 2017-2021 Five -Year Financial Plan SELF-INSURANCE FUND Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $1,540,910 $1,529,620 $1,701,500 $1,854,635 $2,021,550 $2,203,490 $2,401,805 400,000 421,425 434,000 460,040 487,640 516,900 547,915 510,000 546,815 563,000 596,780 632,585 670,540 710,775 540,000 488,950 503,500 533,710 565,735 599,675 635,655 125 1,695 1,000 1,279 1,210 1,181 1,197 0 0 0 0 0 0 0 $2,991,035 $2,988,505 $3,203,000 $3,446,444 $3,708,720 $3,991,786 $4,297,347 64 Exceptional Charges Stop -Loss Premiums HMO Premiums Vision Insurance Premiums Life Insurance Premiums Health Claims Dental Claims Plan Administration Expense Total Exceptional Charges Village of Oak Brook 2017-2021 Five -Year Financial Plan SELF-INSURANCE FUND Long -Range Operating Budget 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $278,000 $282,330 $305,000 $327,900 $352,585 $379,200 $407,900 300,000 334,545 355,000 376,300 398,880 422,810 448,180 0 7,915 8,150 8,395 8,900 9,430 10,000 23,000 21,070 25,000 25,750 26,525 27,320 28,140 2,050,000 1,928,960 2,155,000 2,327,400 2,513,600 2,714,680 2,931,855 140,000 163,185 175,000 182,000 189,280 196,850 204,725 186,500 195,735 215,000 221,450 228,660 236,105 243,530 $2,977,500 $2,933,740 $3,238,150 $3,469,195 $3,718,430 $3,986,395 $4,274,330 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN GARAGE FUND DESCRIPTION: This fund is an internal service fund financed by charges to Village departments for maintenance of vehicle fleet equipment. Expenditures support the operation and maintenance of cars, trucks, most fire equipment, public works construction equipment and related items. OVERVIEW: Revenue: Revenues are calculated as charge -backs to various operating budget programs based on historical fuel and maintenance cost information. Operations: All costs associated with operation and maintenance of the Village's vehicle and equipment fleet are charged to this fund. Annual transfers to the General Corporate Fund for administrative services are also included. The projections include increases in the cost of fuel due to elevated oil prices as well as increases in the cost of repairs. Capital Expenditures: A vehicle exhaust and lift arms project for $8,500 is budgeted in 2017. M. Village of Oak Brook 2017-2021 Five -Year Financial Plan GARAGE FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Unrestricted Cash Available, January 1, 2016 $197,247 Estimated Income $700,060 $701,210 $744,675 $844,165 $869,491 $895,571 $922,367 Less Estimated Operating Expenses Operating Budget 724,380 671,805 763,755 787,919 812,915 838,774 865,529 Exceptional Charges 40,415 40,415 46,620 48,627 50,734 52,946 55,269 Estimated Net Operating Income (64,735) (11,010) (65,700) 7,620 5,843 3,851 1,568 Add Beginning of Year Cash Balance 197,247 197,247 149,237 75,037 82,657 88,499 72,350 Estimated Available Funds 132,512 186,237 83,537 82,657 88,499 92,350 73,918 Less Capital Improvement Program 40,000 37,000 8,500 0 0 20,000 0 Estimated Unrestricted Cash Balance at Year -End $92,512 $149,237 $75,037 $82,657 $88,499 $72,350 $73,918 67 Vehicle O & M Charges Interest Miscellaneous Total Revenue Village of Oak Brook 2017-2021 Five -Year Financial Plan GARAGE FUND Revenue Projections 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $700,010 $700,010 $743,875 $843,440 $868,743 $894,805 $921,650 50 700 300 225 248 265 217 0 500 500 500 500 500 500 $700,060 $701,210 $744,675 $844,165 $869,491 $895,571 $922,367 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Exceptional Charges Transfer to Infrastructure Fund Vehicle Replacement Charge Total Exceptional Charges Capital Improvement Program Floor Lift Fuel Island Concrete Replacement Vehicle Exhaust, Lift Arms Total Capital Improvement Program Total Budget Village of Oak Brook 2017-2021 Five -Year Financial Plan GARAGE FUND Long -Range Operating Budget 2016 Budget 2016 Estimate 2017 2021 $253,940 $165,385 $253,495 232,670 215,540 230,390 237,770 290,880 279,870 $724,380 $671,805 $763,755 2018 2019 2020 2021 $44,249 $264,902 $276,823 $289,280 $302,298 236,150 242,053 248,105 254,307 286,867 294,038 301,389 308,924 $787,919 $812,915 $838,774 $865,529 $40,415 $40,415 $40,135 $42,142 $44,249 $46,461 $48,784 0 0 6,485 6,485 6,485 6,485 6,485 $40,415 $40,415 $46,620 $48,627 $50,734 $52,946 $55,269 0 0 0 0 0 $20,000 $0 40,000 37,000 0 0 0 0 0 0 0 8,500 0 0 0 0- $40,000 $37,000 $8,500 $0 $0 $20,000 $0 $804,795 $749,220 $818,875 $836,546 $863,649 $911,720 $920,798 VILLAGE OF OAK BROOK 2017-2021 FIVE-YEAR FINANCIAL PLAN EQUIPMENT REPLACEMENT FUND DESCRIPTION: This fund was created as a means of pre -funding replacement of major capital equipment, primarily vehicles. It has been supported by other funds, principally the General Corporate, Infrastructure, and Water Funds, through vehicle user charges. This fund is utilized solely for replacement of fleet equipment. Acquisition of new equipment (i.e., not as replacements) is reflected in the fund where the using department or division resides. OVERVIEW: Revenue: Prior to 2002, revenues were calculated as charge -backs to various operating budget programs based on future replacement cost and funded over the remaining life of existing vehicles and equipment. In 2002, the charge -back attributable to the General Corporate Fund was eliminated and replaced with 20% of utility tax collections (i.e. 1% of the total 5% rate). For 2003 and 2004, the Equipment Replacement Fund's share of utility tax collections was redirected to the General Corporate Fund in order to fund operating needs (the General Corporate Fund share was not funded). For 2005 and thereafter there is a return to the 2002 practice whereby operating budget programs are assessed a charge -back based on future replacement cost. Due to budget issues the Village has encountered over the last several years, the General Corporate Fund contribution was either limited or no contribution was made. For 2017, the General Corporate Fund is budgeted to contribute 64.3% of the full contribution towards the funding of the equipment replacement needs. Exceptional Charges: None in 2017. vital Expenditures: The capital program reflects normal scheduled replacements of existing fleet vehicles. The actual timing of the replacement will be based on mileage, condition, and maintenance history of the vehicle at that time. The deferral of the replacement of some vehicles from the schedule contained here is likely to occur. 70 Unrestricted Cash Available, January 1, 2016 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $2,046,172 Village of Oak Brook 2017-2021 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Summary 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $655,595 $823,115 $667,330 $972,065 $962,710 $1,037,075 $1,028,395 0 0 0 0 0 0 0 662,600 0 0 0 0 0 0 (7,005) 823,115 667,330 972,065 962,710 1,037,075 1,028,395 2,046,172 2,046,172 1,462,827 1,656,787 1,835,067 2,313,627 2,845,732 2,039,167 2,869,287 2,130,157 2,628,852 2,797,777 3,350,702 3,874,127 746,070 1,406,460 473,370 793,785 484,150 504,970 459,645 $1,293,097 $1,462,827 $1,656,787 $1,835,067 $2,313,627 $2,845,732 $3,414,482 71 Village of Oak Brook 2017-2021 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Revenue Projections 72 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 Vehicle Replacement Charges 586,185 586,185 605,330 909,945 900,460 974,700 965,895 Grants 0 148,930 0 0 0 0 0 Interest 16,000 18,000 12,000 12,120 12,250 12,375 12,500 Sales/Insurance Proceeds 53,410 70,000 50,000 50,000 50,000 50,000 50,000 Total Revenue $655,595 $823,115 $667,330 $972,065 $962,710 $1,037,075 $1,028,395 72 Exceptional Charges Transfer to General Fund Total Exceptional Charges Village of Oak Brook 2017-2021 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Long -Range Operating Budget 2016 Budget 2016 Estimate 2017 2018 2019 2020 2021 $662,600 $0 $0 $0 $0 $0 $0 $662,600 $0 $0 $0 $0 $0 $0 73 CAPITAL REQUESTS EQUIPMENT REPLACEMENT FUND 11ject Name . General Management Vehicles - 15,000 15,000 Engineering Vehicles - - - 35,000 - - - 35,000 Police Vehicles 156,820 170,190 115,500 115,500 344,150 255,940 178,645 1,009,735 Fire and EMS Vehicles 285,000 946,470 182,500 315,325 75,000 45,000 281,000 898,825 Code Enforcement Vehicles 39,550 26,960 - - _ - _ Public Works Vehicles 50,500 48,640 107,000 233,170 - 204,030 544,200 Water Vehicles 214,200 214,200 68,370 79,790 65,000 - - 213,160 Total Program 342 746,070 1,406,460 473,370 793,785 484,150 504,970 459,645 2,715,920 Total Equip Replacement Fund 746,070 1,406,460 473,370 793,785 484,150 504,970 459,645 2,715,920 74