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2016-2020 Five Year PlanVILLAGE OF OAK BROOK 2016-2020 Five-Year Financial Plan QG� of ®Ake CIO fi ^� C1*) DUN-11 ' Village of Oak Brook, Illinois 1200 Oak Brook Road Oak Brook, Illinois 60523 www.oak-brook.org VILLAGE OF OAK BROOK 2016-2020 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 27 Infrastructure Fund 31 Promenade Special Tax Allocation Fund 36 Water Fund 40 Sports Core Fund 45 Self -Insurance Fund 63 Garage Fund 67 Equipment Replacement Fund 71 VILLAGE OF OAK BROOK 2016-2020 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, 2015 as reported in the audited financial statements as of December 31, 2014. 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 2016-2020 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 2016-2020 FIVE-YEAR FINANCIAL PLAN • Sales tax receipts for 2016 are projected to increase 2.5% from the 2015 estimated cash collections. For each year thereafter the sales tax receipts are projected to increase 3%. Receipts from the non -home rule sales tax, are projected using the same assumptions as the growth in general sales tax receipts. In years 2016-2020, 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 2016, staff has prepared the 2016-2020 Five -Year Plan, 2016 Budget, and 2016 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 2016 Budget and 2016-2020 continues the Village Board directive that staff should prioritize items for inclusion in the 2016 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. 11 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN The actual 2016 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. VILLAGE OF OAI{ BROOK 2016-2020 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 Protection, 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 2016 Budget is operating at a balanced budget where revenues are at or exceed expenditures without using cash reserves. The proposed 2016 General Fund Revenues totals $23.8 million, an increase of $1.1 million over the 2015 budgeted revenues, or 5.0%. The total General Fund spending in the proposed 2016 Budget is $23.7 million, an increase of $.4 million, or 2.0% from the 2015 Budget. The following highlights some of the major budget issues facing the Village for 2016 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 new RP2014 mortality table was budgeted in 2016 - 2020 for both the Police and Fire pension. Total contributions to the Police and Fire Pension Funds budgeted in 2016 are $3.8 million. In year 2019 and beyond, it becomes increasingly difficult to contribute at the 100% funding level unless expenditures are reduced and/or revenues are increased in order for the Village to maintain its six month cash reserve requirement. In the most recent State of Illinois budget address, Governor Rauner proposed reducing municipalities portion by 50% of the Local Government Distributive Fund (LGDF). The Village currently receives approximately $800,000 annually from this revenue source, and the proposed reduction would result in a loss of $400,000 of revenue going forward. The 2016 Budget assumes a 50% reduction effective May 1, 2016 and a 50% reduction in years 2017 - 2020. • The impact of new healthcare reforms on employers is multi -faceted and complex. This will directly require employers to modify their practices and policies. VILLAGE OF OAK BROOK 2016-2020 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 all Village buildings. The Village's 2016 — 2020 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. Revenue: 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 2016, sales tax revenue is projected to be $12.6 million, which is an increase of 2.5% over the 2015 estimated collections. The increase in sales tax is predicated on the reopening of the four closed theaters that were opened this summer, the new twelve screen theaters and new restaurant space, which will be brought on line during 4th quarter of 2016, the Pizza Barra has taken half of the vacant Grotto retail space in the Promenade, and there are very few vacant retail spaces in the Village. Receipts from the utility tax on electric, natural gas, and telecommunications service are expected to end the year at $5.5 million, an increase of 6.4% compared to the 2015 budget. Utility tax collections for 2016 are budgeted to remain flat from the 2015 estimated amount. Inflationary increases of 1% have been assumed in subsequent years 2017 - 2020. State shared revenues in total are projected using information provided by the Illinois Municipal League and for 2016 are projected to decrease by $194,000, or 16%. The State Income Tax is expecting to decrease by 50% effective May 1, 2016, Use tax is expected to increase by 32,000, or 22.7% than in FY 2015 and Replacement Tax is expecting to increase $5,000, or 1.7% from FY 2015. State shared revenues are projected to increase by 2% in years 2017 — 2020. 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 $110,000 for 2016. Most other revenue sources are projected to increase from 0% to 3% per year for the duration of the Five -Year Financial Plan. VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN Operations: 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 Legal program reflects a decrease in attorney fees, which are budgeted at $200,000, a decrease of 20% from the 2015 Budget. Labor Attorney fees of $100,000 are budgeted for Police and Fire negotiations. The General Management program reflects a decrease in salaries and benefits due to combining the vacant Assistant Village Manager position with the Finance Director duties. The Human Resources budget includes an increase in the bonus program due to those individuals at top of grade based on the updated compensation pay plan study. The Human Resources budget also includes an increase of $21,000 for testing processes and mandatory training. Employee recognition events were moved from the Board of Trustees program to the Human Resources budget for $10,000 and salaries and benefits decreased as the Payroll coordinator position was moved to Finance. The total increase of 6.1% in the Risk Management budget was mainly attributable to an increase in liability insurance. The Communication and Marketing program, Economic Development program, and Transportation program was dissolved due to lack of activity. Customer Service was moved back to Legislative and General Management from Finance and Purchasing and Payroll was moved to the Finance department due to a recent reorganization. Information Technology budget includes the continuation of full time contract services for a village -wide document imaging project for $30,000. A part time IT person is budgeted, which will be shared with the Village of Hinsdale. The person will be a full time employee of the Village of Oak Brook and 50% of their salary and benefits will be billed to the Village of Hinsdale. A 10% portion of the IT Director's salary and benefits will be allocated to the Geographic Information System program in year 2016. Financial Services This department includes all functions related to the Village's financial management activities. Financial Management reflects a decrease in salary and benefits due to 12% being allocated to the General Management program to assist with Assistant Village Manager duties. A decrease in auditing and actuarial fees is reflected to include updated pricing from recent contracts due to a request for proposal process. The Accounting and Reporting program increased 43.1% due to a reorganization, which resulted in the hiring of an Assistant Finance Director and moving the Payroll coordinator position in this program. The Customer Service program was moved to Legislative and General Management and Purchasing was moved under the realm of responsibility in Finance. Interfund Transfers includes a transfer to the Sports Core for $251,005 from the General Corporate Fund and $131,000 to Infrastructure for administrative costs. The Sports Core transfer from the General Corporate Fund accounts for Polo operating expenses of $50,000, Capital improvements for $103,000, and $98,005 in other operating expenses. Installment Contract Debt Service includes $294,545 for interest and principal on the West Wing building expansion. T.I.F. Note Debt Set -vice includes $430,000 for interest and principal on the $4.25 million limited obligation T.LF Note that was issued early in 2008. 5 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN Public Works There are no significant changes projected in the operating budget of this department, beyond application of the inflation assumptions. The program budgets for the majority of the Village's capital improvement which can be found in this book. Library There are no significant changes projected in the operating budget of this department, beyond application of the inflation assumptions. Police Police Services Management reflects a decrease in Other expenditures of $78,020 as there is no longer a need to put money aside for a future DuComm building. Police Field Services includes the purchase of Taser replacement for $15,240. Support Services Records includes DuComm fees of $438,740, a 5% increase from 2015. Fire Fire, Rescue, and EMS Operations includes an increase in overtime of $40,000 from the 2015 budget due to staffing needs in this department. Fire gear for $18,200 and Starcom portable radios for $18,000 are included. Rescue & Fire Service Management reflects a decrease in overtime due to moving the 7G2 activity for fire inspections to a newly created Fire Prevention program. Contracted IT support services for $12,000 was added to Rescue & Fire Service Management to update their existing databases for better efficiencies in the department. Also, a decrease in Other expenditures of $24,505 for a future DuComm building is no longer needed. Emergency Medical Services program includes Zoll Monitor/Defibrillator for $35,200 and a Stryker Power Pro cot for $18,000, which are needed for safety measures. Fire Prevention program for 2016 will be reflected 100% in the Fire Department, whereas, 50% was in Development Services. Development Services Development Services Management for 2016 was reorganized to oversee the Engineering services department. The department director's salary and benefits are split between the Engineering program (40%) and the Development Services program (60%). A new Village Planner position is being proposed effective May 1, 2016 to support the Development Services department at 60% of their time and streetscape and beautification efforts from the Hotel Fund at 40%. This program also includes the continuation of utilizing a professional planning consultant for $70,000 to update codes and ordinances. Code Enforcement includes a new part time permit coordinator for $10,700 effective August 1. VILLAGE OF OAK BROOK 2016-2020 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 years 2017 — 2020 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 a reduction of $145,000 in year 2016 and 100% contributions in years 2017 - 2020. Prior to 2012, they have been eliminated for 2008, 2009, 2010 as well as 2011 due to General Corporate Fund revenue issues. The Equipment Replacement fund (page 68) factors in General Fund contributions for years 2017- 2020 and will continue to be a healthy fund. • An annual transfer 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 2016 at 7.1 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 1, 2015 $12,288,453 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Unrestricted Cash Available at Year -End 6 ddonths Operating Village of Oak Brook 2016-2020 Five -Year Financial Plan GENERAL CORPORATE FUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $22,612,340 $22,888,265 $23,759,255 $25,911,446 $24,156,963 $24,698,836 $25,243,919 17,962,460 17,365,185 18,208,175 18,009,131 18,626,558 19,443,860 20,114,263 3,979,150 4,179,785 4,844,775 5,258,100 5,179,990 5,437,680 5,514,940 670,730 1,343,295 706,305 2,644,215 350,415 (182,705) (385,283) 12,288,453 12,288,453 12,797,323 12,808,988 12,226,648 12,131,538 11,440,333 12,959,183 13,631,748 13,503,628 15,453,203 12,577,063 11,948,833 11,055,050 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12,959,183 13,631,748 13,503,628 15,453,203 12,577,063 11,948,833 11,055,050 1,364,420 834,425 694,640 3,226,555 445,525 508,500 678,590 $11,594,763 $12,797,323 $12,808,988 $12,226,648 $12,131,538 $11,440,333 $10,376,460 $10,088,405 $10,088,405 $10,797,313 $11,005,571 $11,203,054 $11,660,055 $12,110,381 Village of Oak Brook 2016-2020 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 12 2015 2015 Description Budget Estimate 2016 2017 2018 2019 2020 General Sales Tax 12,444,000 12,320,000 12,625,000 13,003,750 13,393,863 13,795,678 14,209,549 State Income Tax 771,000 825,000 540,000 408,000 416,160 424,483 432,973 Replacement Tax 290,000 295,000 295,000 300,900 306,918 313,056 319,317 York Township Road and Bridge Tax 7,000 15,000 15,000 15,000 15,000 15,000 15,000 State Income Tax -Use Tax 141,000 172,825 173,000 176,460 179,989 183,589 187,261 Charitable Games Tax 500 500 500 500 500 500 500 Grants 112,965 20,470 22,390 20,000 20,000 20,000 20,000 Telecommunications Tax/Utility 5,170,000 5,500,000 5,500,000 5,555,000 5,610,550 5,666,656 5,723,322 Total Intergovernmental 18,936,465 19,148,795 19,170,890 19,479,610 19,942,980 20,418,962 20,907,922 Liquor License 145,000 151,500 152,000 152,000 152,000 152,000 152,000 Scavenger Licenses 8,000 7,000 7,000 7,000 7,000 7,000 7,000 Taxi Licenses 41,000 40,000 41,000 41,000 41,000 41,000 41,000 Tobacco License 1,700 1,300 1,500 1,500 1,500 1,500 1,500 Raffle Licenses 500 500 500 500 500 500 500 Building Permits 650,000 625,000 796,500 796,500 796,500 796,500 796,500 Electrical Permits 240,000 175,000 200,000 200,000 200,000 200,000 200,000 Plumbing Permits 40,000 30,000 40,000 40,000 40,000 40,000 40,000 Alarm Application Fee 31,000 36,000 36,000 36,000 36,000 36,000 36,000 Annual Alarm Permit Fee 150 150 150 150 150 150 150 Accessory Structure Permits 22,000 19,000 20,000 20,000 20,000 20,000 20,000 HVAC Permits 70,000 50,000 65,000 65,000 65,000 65,000 65,000 Demolition Permits 15,000 7,500 8,500 8,500 8,500 8,500 8,500 Application/Occupancy Fees 45,000 48,000 65,000 65,000 65,000 65,000 65,000 Miscellaneous Licenses & Permits 40,000 30,000 40,000 40,000 40,000 40,000 40,000 Solicitation Permits 500 500 500 500 500 500 500 Total Licenses and Permits 1,349,850 1,221,450 1,473,650 1,473,650 1,473,650 1,473,650 1,473,650 12 2015 Description Budget Village of Oak Brook 2016-2020 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2015 Estimate 2016 2017 2018 2019 2020 Elevator Inspections 105,000 112,360 112,000 115,360 118,821 122,385 126,057 Zoning/Subdivision Appl. Fees 9,000 9,500 10,000 10,000 10,000 10,000 10,000 Plan Review Fees 55,000 53,000 60,000 60,000 60,000 60,000 60,000 Building/Inspection Fees 175,000 170,000 225,000 225,000 225,000 225,000 225,000 Ambulance Fees 584,000 620,150 620,000 638,600 657,758 677,491 697,815 Toll Road Fire Service 42,000 55,600 55,500 57,165 58,880 60,646 62,466 Special Services -EMS 6,000 6,000 6,000 6,300 6,615 6,946 7,293 Special Services -Fire 4,000 4,000 6,000 6,300 6,615 6,946 7,293 False Alarm -Fire 8,000 9,000 10,000 10,000 10,000 10,000 10,000 Compliance 20,000 18,000 20,000 20,000 20,000 20,000 20,000 Fingerprinting 4,500 4,500 4,500 4,500 4,500 4,500 4,500 Special Services -Police 80,000 80,000 80,000 84,000 88,200 92,610 97,241 Field Services -Police 500 500 500 500 500 500 500 Misc. Support Services -Police 3,500 3,500 3,500 3,500 3,500 3,500 3,500 False Alarm -Police 25,000 21,000 25,000 25,000 25,000 25,000 25,000 Eng. Plan Review & Inspection 10,000 8,000 10,000 10,000 10,000 10,000 10,000 Subdivision Review & Inspection 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Fire Plan Review Fees 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Library Services 10,000 8,500 9,000 9,000 9,000 9,000 9,000 Bad Debt (200,000) (217,700) (215,000) (215,000) (215,000) (215,000) (215,000) Total Charges for Services 958,500 982,910 1,059,000 1,087,225 1,116,389 1,146,524 1,177,665 Court Fines 200,000 150,000 155,000 159,650 164,440 169,373 174,454 Village Fines 25,000 16,000 18,000 18,000 18,000 18,000 18,000 Training Reimbursement -Police 5,000 7,585 7,500 7,500 7,500 7,500 7,500 Administrative Towing Fees 80,000 70,000 75,000 80,000 80,000 80,000 80,000 Administrative Fines 5,000 5,000 5,000 5,250 5,513 5,788 6,078 Library Fines 9,000 8,000 8,000 8,000 8,000 8,000 8,000 Bond Proceeds 2,400,000 Interest 60,000 93,000 110,000 128,090 244,533 242,631 228,807 13 Village of Oak Brook 2016-2020 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 14 2015 2015 Description Budget Estimate 2016 2017 - 2018 2019 2020 IMF/Franchise Fees 190,000 192,000 195,000 200,850 206,876 213,082 219,474 Rental Income 141,875 141,875 146,590 151,427 156,425 161,587 166,919 Road Maintenance Reimbursement 15,000 15,000 15,000 15,450 15,914 16,391 16,883 Miscellaneous 30,000 230,000 30,000 30,000 30,000 30,000 30,000 Total Other Revenues 760,875 928,460 765,090 3,204,217 937,199 952,351 956,114 Transfer From Water Fund 391,350 391,350 415,720 428,192 441,037 454,268 467,897 Transfer From Other Funds 215,300 215,300 874,905 238,552 245,709 253,080 260,672 Totallnterfund Revenues 606,650 606,650 1,290,625 666,744 686,746 707,348 728,569 Total Revenue 22,612,340 22,888,265 23,759,255 25,911,446 24,156,963 24,698,836 25,243,919 14 Village of Oak Brook 2016-2020 Five -Year Financial Plan GENERAL CORPORATE FUND Long -Range Operating Budget 15 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Personnel $13,080,400 $12,779,995 $13,648,975 $14,355,570 $15,099,062 $15,881,392 $16,704,605 Materials and Supplies 542,590 530,125 536,415 549,825 563,571 577,660 592,102 Operations and Contractual 4,339,470 4,055,065 4,022,785 4,051,585 4,152,854 4,225,905 4,331,533 Total Operating Budget $17,962,460 $17,365,185 $18,208,175 $18,956,980 $19,815,487 $20,684,958 $21,628,239 Adjustment for Budget Goal Attainment $18,208,175 $18,009,131 $18,626,558 $19,443,860 $20,114,263 Exceptional Charges Police Pension Contribution $1,410,355 $1,363,075 $1,855,400 $1,885,600 $1,917,700 $1,977,000 $2,025,700 Firefighters' Pension Contribution 1,337,365 1,419,800 1,957,200 $1,981,300 $2,012,600 $2,050,000 $2,080,800 Vehicle Replacement Charges 499,510 499,510 356,810 577,350 582,590 739,580 732,340 Transfer to DuComm Building Reserve 102,525 0 0 0 0 0 0 Transfer to Infrastructure Fund 124,000 124,000 130,620 135,000 139,000 143,000 148,000 Transfer to Sports Core Fund 213,705 481,710 251,005 250,000 250,000 250,000 250,000 Installment Contract Debt Service 291,690 291,690 293,740 428,850 278,100 278,100 278,100 Total Exceptional Charges $3,979,150 $4,179,785 $4,844,775 $5,258,100 $5,179,990 $5,437,680 $5,514,940 Capital Improvement Program (See Schedule) $1,364,420 $834,425 $694,640 $3,226,555 $445,525 $508,500 $678,590 Total Budget $23,306,030 $22,379,395 $23,747,590 $26,493,786 $24,252,073 $25,390,040 $26,307,793 15 CAPITAL REQUESTS GENERAL CORPORATE FUND Legislative and General Management: Computer Hardware and Software 175,000 176,680 100,000 175,000 200,000 225,000 245,000 945,000 Total Program 151 175,000 176,680 100,000 175,000 200,000 225,000 245,000 945,000 Municipal Complex: Undesignated Repairs/Safety Projects 15,000 15,000 15,000 15,000 15,000 15,000 15,000 75,OD0 Police Dep. Architect/Remodeling 100,000 100,000 - 1,700,000 - - 1,700,000 Police Dept. Upstairs Carpet - - - 50,000 - - - 50,000 Electrical Project 410,000 200,000 60,000 700,000 - - 760,000 Village Hall Carpet Replace West Wing - - - 50,000 - - 50,000 West Wing/Station 94 painting - - 5,000 5,000 5,000 - - 15,000 Galvanized Plumbing Replacement 15,000 15,000 15,000 15,000 15,000 15,000 15,000 75,000 Village Hall Exterior Beautification 7,500 7,500 7,500 7,500 7,500 7,500 7,500 37,500 Reception Area Remodeling 11,000 11,000 - - - - - - Station 94 Reseal Apparatus Floor - - - 50,000 50,000 Station 94 Humidifier/Dehumidifier - 60,000 - 60,000 Station 94 Apparatus FUR Hot Water - 6,300 - - - - - - Station 94 Dispatch Room 28,000 25,000 - - - - - Station 94 Plymovents - 12,000 - - - - - - Station 94Door Closer Safety System - - 75,000 - - - 75,000 16 CAPITAL REQUESTS GENERAL CORPORATE FUND Station 94 Ceiling Fans Ductwork Cleaning 10,000 10,000 Recoat North Walkway - - Electric Door Strikes 15,000 15,000 Innterior Signage - 10,000 Training Room Tables - 12,500 Bathrooms - - Station 93 Projects identified by Needs Study - - Station 93 Painting Outside/Bird Proofing - - Station 93 Interior Painting - - Bathrooms & Bunkroom Remodeling 89,000 50,000 Bathrooms - - Generator replacement - - Fire Station #93 Landscaping - - Public Works Building: - - Recondition/Reseal Garage Floor 25,000 25,000 Heritage Center HVAC, tank removal, concrete work 340,000 Water proofing, east planter box - 11,685 75,000 15,000 60,000 5,000 25,000 17 5,000 10,000 10,000 17,500 - 15,000 50,000 75,000 10,000 7,500 75,000 10,000 10,000 75,000 75,000 25,000 25,000 5,000 40,000 17,500 15,000 10,000 12,500 125,000 225,000 25,000 7,500 60,000 75,000 5,000 75,000 CAPITAL REQUESTS GENERAL CORPORATE FUND Kluber, elevator and renovations Electrical outlets Tank removal, concrete work, water pros Replacement of condenser unit Repoint exterior HVAC, tank removal, concrete work Library: Make Computer Roam Meeting Space Electrical Improvements in Anteroom New Reference Desks CCN in Meeting Room Install Window Shades Office Painting Replace Chairs Meeting Room Furniture Carpeting Replacement Exterior Wood Siding Maintenance Interior Lighting Change Out Total Program 421 18 5,845 1,995 - 110,000 110,000 20,000 - - - - 20,000 - 25,000 25,000 25,000 25,000 100,000 - - - 306,000 306,000 15,000 - 15,000 - 5,000 - 5,000 7,500 - - 7,500 - - 10,000 - 10,000 14,000 14,000 - - - - 5,000 5,000 5,000 5,000 - 10,000 5,000 5,000 - - - - - - 50,000 - 50,000 - - - 20,000 20,000 - - - 20,000 20,000 20,000 - 60,000 1,089,500 557,825 490,000 3,002,500 197,500 247,500 398,500 4,358,500 18 CAPITAL REQUESTS GENERAL CORPORATE FUND Police Patrol Rifle and Optics 13,640 13,640 Taser Replacement - - 15,240 15,240 Total Program 621 13,640 13,640 15,240 - - - - 15,240 Fire: Fire Gear Replacement 16,700 16,700 18,200 18,655 19,125 19,600 20,090 95,670 Starcom Mobile Radios 12,000 12,000 - - - - - - Starcom Portable Radios 12,000 12,000 18,000 - - 18,000 LDH Fire Hose - - - 9,000 - - - 9,000 Personal Flotation Devices (Class III) - - 8,900 8,900 8,900 - 26,700 Office Chairs - - 5,000 5,000 - - 10,000 Fitness Equipment - - 7,500 7,500 7,500 7,500 30,000 Thermal Imaging Camera - - - 7,500 - 7,500 15,000 Total Program 700 40,700 40,700 36,200 49,055 48,025 36,000 35,090 204,370 Stryker Power Load 25,475 25,475 - - - - - Stryker Power Pro XT Stretcher 20,105 20,105 18,000 18,000 Defibrillators - - 35,200 35,200 Total Program 731 45,580 45,580 53,200 - - - - 53,200 Total General Corporate Fund 1,364,420 834,425 694,640 3,226,555 445,525 508,500 678,590 5,576,310 19 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN HOTEL/MOTEL TAX FUND 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 2016, revenues from the 3% Hotel/Motel Tax are projected to be $1.3 million, which is an increase of $196,035, or 17.9% compared to the 2015 Budget. For 2016 and thereafter, revenue is projected to increase 2% per year. Operations (1% Fund): For 2016, the projections reflect expenditures for marketing efforts of the Hotel, Convention and Visitors Committee of $349,550 from the 1% Fund as well as payment to the DuPage Convention and Visitors Bureau equal to 20% of the first 1% of the Hotel Tax imposed. Thereafter, expenditures increase approximately 3% per year. Exceptional Charges: The Plan reflects an annual transfer to the General Corporate Fund for administrative services of $90,305 from the Hotel, Convention and Visitors Committee. 20 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN Capital Improvement Program (2% Fund): The 2016 Budget includes $1,225,000 for 22nd street (Salt Creek — I294), which is offset by a grant for $424,900. Pedestrian access improvements are budgeted for $150,000 and $85,000 in design costs. Thereafter, additional outlays of specific projects are budgeted for improvements and maintenance in the Hotel Beautification District. 21 Unrestricted Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $3,569,460 Village of Oak Brook 2016-2020 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Summary 2015 Budget 2015 Estimate 2016 2018 2019 2020 $2,005,465 $1,356,750 $1,735,100 $2,062,584 $1,489,796 $1,392,433 $1,420,504 568,015 398,605 399,920 458,750 472,845 482,445 497,780 42,500 42,500 90,305 93,375 96,550 99,835 103,230 1,394,950 915,645 1,244,875 1,510,459 920,401 810,153 819,494 3,569,460 3,569,460 4,238,950 4,023,825 2,659,284 2,329,686 2,139,839 4,964,410 4,485,105 5,483,825 5,534,284 3,579,686 3,139,839 2,959,333 4,964,410 4,485,105 5,483,825 5,534,284 3,579,686 3,139,839 2,959,333 2,759,530 246,155 1,460,000 2,875,000 1,250,000 1,000,000 500,000 $2,204,880 $4,238,950 $4,023,825 $2,659,284 $2,329,686 $2,139,839 $2,459,333 22 Village of Oak Brook 2016-2020 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Revenue Projections 23 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Hotel/MotelTax $1,095,665 $1,222,355 $1,291,700 $1,317,565 $1,351,500 $1,380,785 $1,409,805 Grants 849,800 0 424,900 424,900 0 0 0 Interest 10,000 18,040 18,500 20,119 13,296 11,648 10,699 Miscellaneous 50,000 116,355 0 300,000 125,000 0 0 Total Revenue $2,005,465 $1,356,750 $1,735,100 $2,062,584 $1,489,796 $1,392,433 $1,420,504 23 Operations and Contractual Total Operating Budget Exceptional Charges Transfer to General Fund Total Exceptional Charges Capital Improvement Program Hotel Beautification and projects Total Budget Village of Oak Brook 2016-2020 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Long -Range Operating Budget 2015 Budget 2015 Estimate $568,015 $398,605 $568,015 $398,605 2016 2017 2018 2019 2020 $399,920 $458,750 $472,845 $482,445 $497,780 $399,920 $458,750 $472,845 $482,445 $497,780 $42,500 $42,500 $90,305 $93,375 $96,550 $99,835 $103,230 $42,500 $42,500 $90,305 $93,375 $96,550 $99,835 $103,230 $2,759,530 $246,155 $1,460,000 $2,875,000 $1,250,000 $1,000,000 $500,000 $3,370,045 $687,260 $1,950,225 $3,427,125 $1,819,395 $1,582,280 $1,101,010 24 CAPITAL REQUESTS HOTEL AND MOTEL FUND Beautification Program (2% Portion) Median/Streetlighting Projects 22nd St, (Salt Creek -1294) - Grant (849,800) IL 83 (22nd to 16th Ave) Design Design - Jorie, York, Perimeter of OB Center Construction -Jorie, York, Perimeter of OB Cent TBD Additional projects Total Media n/Streetlighting Projects Pedestrian Access Projects: Oak Brook Club Connection (Project B) Spring/Harger Connection Ph1 (Proj C) Design Spring/Harger Connection Ph1 (Proj C) Const Spring/Harger Connection Ph2 (Proj C) Design Spring/Harger Connection Ph2 (Proj C) Const Marriot/Regency Connection(Proj G1)Design Marriot/Regency Connection(Proj G1)Const 16th Street Connection (Proj A) Design 16th Street Connection (Proj A) Const Oak Brook Center to 16th St. Connection West Rte 83 Connection(Proj L) Design TBD Additional projects Total Pedestrian Access Projects 2,450,000 10,000 1,225,000 1,225,000 2,450,000 60,000 - - - - 80,000 50,000 50,000 - 100,000 - - 1,000,000 1,000,000 - - 2,000,000 - - - - - 1,000,000 500,000 1,500,000 2,590,000 10,000 1,275,000 2,275,000 1,000,000 1,000,000 500,000 6,050,000 48,260 50,000 - - - - - - - 20,490 150,000 121,155 - - 10,000 - 10,000 - 10,000 - -_ - 100,000 100,000 - 18,000 - - 61,270 65,000 - - 25,000 - 25,000 - 25,000 - - - 250,000 250,000 - - 125,000 - 125,000 35,000 - - - - - - - 25,000 250,000 250,000 525,000 329,530 274,645 185,000 600,000 250,000 - - 1,035,000 25 Gateway Signage Projects: Additional Signage Design Additional Signage Construction Total Gateway Signage Projects Total Program 171 Hotel and Motel Fund 15,000 10,000 50,000 - 65,000 10,000 - - 2,984,530 294,645 1,460,000 2,875,000 1,250,000 1,000,000 500,000 7,085,000 2,984,530 294,645 1,460,000 2,875,000 1,250,000 1,000,000 500,000 7,085,000 26 VILLAGE OF OAK BROOK 2016-2020 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. Revenues for 2016 are projected at $0. The State has held payments to the Village since July, 2015. For years, 2017 — 2020 revenues are projected to start receiving payments from the State. Exceptional Charges: There is a transfer budgeted to the Infrastructure Fund of $950,000 in 2016 and $700,000 in 2019 to supplement the road improvement program in those years. 27 Unrestricted Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan lnterfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $1,016,948 Village of Oak Brook 2016-2020 Five -Year Financial Plan MOTOR FUEL TAX FUND Summary 2015 Budget 2015 Estimate 2016 2018 2019 $237,500 $110,655 $2,500 $242,451 $250,924 $259,658 $265,160 0 0 0 0 0 0 0 900,000 100,000 950,000 0 0 700,000 0 (662,500) 10,655 (947,500) 242,451 250,924 (440,342) 265,160 1,016,948 1,016,948 1,027,603 80,103 322,554 573,478 133,136 354,448 1,027,603 80,103 322,554 573,478 133,136 398,296 0 0 0 0 0 0 0 0 0 0 0 0 0 0 354,448 1,027,603 80,103 322,554 573,478 133,136 398,296 0 0 0 0 0 0 0 $354,448 $1,027,603 $80,103 $322,554 $573,478 $133,136 $398,296 Village of Oak Brook 2016-2020 Five -Year Financial Plan MOTOR FUEL TAX FUND Revenue Projections 2015 Budget 2015 Estimate 2016 2017 2018 2019 Motor Fuel Tax Allotments $235,000 $106,655 $0 $242,050 $249,312 $256,791 Interest 2,500 4,000 2,500 401 1,613 2,867 Total Revenue $237,500 $110,655 $2,500 $242,451 $250,924 $259,658 29 2020 $264,495 666 $265,160 Village of Oak Brook 2016-2020 Five -Year Financial Plan MOTOR FUEL TAX FUND Long -Range Operating Budget 2015 Budget 2015 Estimate Exceptional Charges Transfer to Infrastructure Fund $900,000 $100,000 Total Exceptional Charges $900,000 $100,000 30 2016 2017 $950,000 $950,000 2018 $0 $0 $0 $0 2019 2020 $700,000 $700,000 $0 $0 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN INFRASTRUCTURE FUND 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 $5.8 million for 2016, which represents a slight increase from the 2015 budget. 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 2017 — 2020 the revenues are estimated to grow approximately 3% per year (See GENERAL ASSUMPTIONS). Transfers from the Motor Fuel Tax Fund are reflected in 2016 and 2019 in order to supplement the roadway maintenance program. Transfers 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: There are no other significant changes beyond application of the inflation assumptions. Capital Improvements: The 2016 Street Improvement project will occur for approximately $4.5 million including engineering. St. Paschal Drive and 35°i Street project will be completed fully in spring with most of the reimbursements from the Illinois Department of Transportation, which could be approximately $950,000 coming from Motor Fuel Tax funds. Designs for 2017 Street Improvement Project, 2017 York Road STP Resurfacing Project and 2017 Bridge Improvements Project (various non-Tollway bridges) are budgeted for approximately $300,000. 31 Unrestricted Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds , Residual Equity Transfer To General Fund Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2016-2020 Five -Year Financial Plan INFRASTRUCTURE FUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $5,165,271 $7,190,575 $6,004,205 $7,005,035 $6,211,895 $6,395,894 $7,287,892 $6,788,350 3,204,420 2,680,630 3,036,235 2,933,501 2,990,592 3,048,677 3,107,766 295,015 295,015 316,625 326,186 340,938 346,577 355,548 3,691,140 3,028,560 3,652,175 2,952,208 3,064,364 3,892,637 3,325,035 5,165,271 5,165,271 4,093,501 3,204,271 2,271,578 1,700,161 1,674,997 8,856,411 8,193,831 7,745,676 6,156,479 5,335,943 5,592,798 5,000,032 0 0 0 0 0 0 0 8,856,411 8,193,831 7,745,676 6,156,479 5,335,943 5,592,798 5,000,032 5,050,330 4,100,330 4,541,405 3,884,901 3,635,782 3,917,801 2,976,938 $3,806,081 $4,093,501 $3,204,271 $2,271,578 $1,700,161 $1,674,997 $2,023,094 32 Village of Oak Brook 2016-2020 Five -Year Financial Plan INFRASTRUCTURE FUND Revenue Projections 33 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Non -Home Rule Sales Tax $5,437,000 $5,696,630 $5,835,000 $6,010,050 $6,190,352 $6,376,062 $6,567,344 Grants 454,000 0 0 0 0 0 0 Interest 15,000 23,000 25,000 6,409 4,543 5,100 8,375 Transfer From Motor Fuel Tax Fund 900,000 100,000 950,000 0 0 700,000 0 Transfers From Other Funds 169,575 169,575 180,035 185,436 190,999 196,729 202,631 Miscellaneous 215,000 15,000 15,000 10,000 10,000 10,000 10,000 Total Revenue $7,190,575 $6,004,205 $7,005,035 $6,211,895 $6,395,894 $7,287,892 $6,788,350 33 Village of Oak Brook 2016-2020 Five -Year Financial Plan INFRASTRUCTURE FUND Long -Range Operating Budget 34 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Personnel $1,549,340 $1,525,280 $1,641,725 $1,697,953 $1,756,270 $1,816,760 $1,879,507 Materials and Supplies 487,610 244,780 371,070 380,347 389,855 399,602 409,592 Operations and Contractual 1,153,970 903,570 953,590 977,430 1,001,865 1,026,912 1,052,585 Total Operating Budget 3,204,420 2,680,630 3,036,235 3,055,730 3,147,991 3,243,274 3,341,684 Exceptional Charges Vehicle Replacement Charges 151,015 151,015 161,625 163,436 170,050 167,145 167,145 Transfer to Other Funds 144,000 144,000 155,000 162,750 170,888 179,432 188,403 Total Exceptional Charges 295,015 295,015 316,625 326,186 340,938 346,577 355,548 Capital Improvement Program (See Schedule) 5,050,330 4,100,330 4,541,405 3,884,901 3,635,782 3,917,801 2,976,938 'total Budget $8,549,765 $7,075,975 $7,894,265 $7,144,588 $6,967,311 $7,313,055 $6,440,253 34 35 Village of Oak Brook 2016-2020 Five -Year Financial Plan INFRASTRUCTURE FUND Capital Improvement Program 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Roadway Improvements Street Resurfacing/Reconstruction $4,950,330 $4,000,330 $4,441,405 $3,784,901 $3,535,782 $3,817,801 $2,876,938 Street Cracksealing 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Total $5,050,330 $4,100,330 $4,541,405 3,884,901 3,635,782 $3,917,801 $2,976,938 35 VILLAGE OF OAK BROOK 2016-2020 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 the amount received for 2015. For 2017 and thereafter, real estate tax revenues are projected based on increasing at 3%. 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 2016 it is projected that current interest payments will be made and payments of the principal amount. 36 Unrestricted Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $228,557 Village of Oak Brook 2016-2020 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $420,025 $422,665 $427,015 $437,890 $451,031 $464,566 $478,507 4,350 3,975 3,800 3,895 3,992 4,092 4,194 445,000 420,000 430,000 454,780 460,220 464,060 479,680 (29,325) (1,310) (6,785) (20,785) (13,181) (3,586) (5,367) 228,557 228,557 227,247 220,462 199,677 186,496 182,910 199,232 227,247 220,462 199,677 186,496 182,910 177,543 199,232 227,247 220,462 199,677 186,496 182,910 177,543 0 0 0 0 0 0 0 $199,232 $227,247 $220,462 $199,677 $186,496 $182,910 $177,543 37 Village of Oak Brook 2016-2020 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Revenue Projections 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Real Estate Taxes $330,000 $325,655 $330,000 $339,900 $350,097 $360,600 $371,418 Sales Tax 90,000 97,000 97,000 97,970 100,909 103,936 107,054 Interest 25 10 15 20 25 30 35 Total Revenue $420,025 $422,665 $427,015 $437,890 $451,031 $464,566 $478,507 Operations and Contractual Total Operating Budget Exceptional Charges Debt Service Interest Debt Service Principal Total Exceptional Charges Total Budget Village of Oak Brook 2016-2020 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Long -Range Operating Budget 2015 Budget 2015 Estimate $4,350 $3,975 4,350 3,975 2016 2017 2018 2019 263,220 247,060 $3,800 $3,895 $3,992 $4,092 3,800 3,895 3,992 4,092 2020 $4,194 4,194 300,000 300,000 290,000 277,780 263,220 247,060 228,780 145,000 120,000 140,000 177,000 197,000 217,000 250,900 445,000 420,000 430,000 454,780 460,220 464,060 479,680 $ 449,350 $ 423,975 $ 433,800 $ 458,675 $ 464,212 $ 468,152 $ 483,874 39 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN WATER FUND The water utility is one of two large enterprises operated by the Village. It serves approximately 5,200 customers, 1,525 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 1.1 billion gallons billed per year and usage is projected to remain flat in order to mitigate fluctuations due to weather. In 2015, the Village Board conducted a comprehensive water rate study, which resulted in increasing the water rates by 10% and fixed charges by 36% in order to support the operating and maintenance of the system as well as capital improvements. The 2016-2020 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 2016 budget at $5.5 million and 5% increase in years 2017 — 2020. Capital Improvements: The capital improvement program reflects a focus on water main replacement for the next twenty years. .4 Unrestricted Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Fxpenses 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 $2,671,377 Village of Oak Brook 2016-2020 Five -Year Financial Plan WATER FUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $6,986,100 $7,319,000 $8,368,500 $9,291,190 $10,076,985 $10,945,136 $11,878,855 1,634,845 1,401,925 1,667,520 1,677, 836 1,722,575 1,768,409 1,815, 355 4,885,805 5,822,380 6,008,065 6,310,376 6,614,451 6,934,874 7,269,736 465,450 94,695 692,915 1,302,978 1,739,959 2,241,854 2,793,764 2,671,377 2,671,377 1,145,982 1,653,497 2,276,515 1,688,960 3,930,814 3,136,827 2,766,072 1,838,897 2,956,475 4,016,474 3,930,814 6,724,578 1,620,090 1,620,090 185,400 679,960 2,327,514 0 2,012,520 $1,516,737 $1,145,982 $1,653,497 $2,276,515 $1,688,960 $3,930,814 $4,712,058 41 Village of Oak Brook 2016-2020 Five -Year Financial Plan WATER FUND Revenue Projections 42 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Water Sales $6,800,000 $7,125,000 $8,180,000 $9,105,000 $9,880,000 $10,725,000 $11,650,000 Unmetered Sales 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Connection Fees 20,000 28,000 30,000 30,000 30,000 30,000 30,000 Meter Fees 25,000 25,000 27,000 27,000 27,000 27,000 27,000 Special Services 30,000 30,000 30,000 30,900 31,827 32,782 33,765 Fire Service Charge 0 9,500 0 0 0 0 0 Plan Review Fees 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Inspection Fees 4,100 4,500 4,500 4,500 4,500 4,500 4,500 Interest 10,000 10,000 10,000 6,790 16,658 38,855 46,590 Miscellaneous 70,000 60,000 60,000 60,000 60,000 60,000 60,000 Total Revenue $6,986,100 $7,319,000 $8,368,500 $9,291,190 $10,076,985 $10,945,136 $11,878,855 42 Village of Oak Brook 2016-2020 Five -Year Financial Plan WATER FUND Long -Range Operating Budget 2015 Budget 2015 Estimate 2016 2017 2018 Personnel $816,185 $783,485 $812,125 $848,671 Materials and Supplies 101,395 60,330 74,545 76,781 Operations and Contractual 717,265 557,310 780,850 804,276 Other Expenditures 0 800 Total Operating Budget $1,634,845 $1,401,925 $1,667,520 $1,729,727 Adjustment for Budget Goal Attainment Exceptional Charges $5,516,595 $5,792,425 DWC Fixed and O & M Charges $4,412,000 Transfer To General Corporate Fund 399,350 Vehicle Replacement Charges 74,455 Total Exceptional Charges $4,885,805 Capital Improvement Program (See Schedule) $1,620,090 Total Budget $8,140,740 $1,667,520 $1,677,836 $5,348,575 $5,516,595 $5,792,425 399,350 423,720 436,432 74,455 67,750 81,520 $5,822,380 $6,008,065 $6,310,376 $1,620,090 $185,400 $679,960 $8,844,395 $7,860,985 $8,668,172 43 $886,861 79,085 828,404 $1,794,349 $1,722,575 $6,082,046 449,525 82,880 $6,614,451 $2,327,514 $10,664,540 2019 2020 $926,770 $968,474 81,457 83,901 853,256 878,854 $1,861,483 $1,931,229 $1,768,409 $1,815,355 $6,386,148 $6,705,456 463,010 476,901 85,715 87,380 $6,934,874 $7,269,736 $0 $2,012,520 $8,703,282 $11,097,611 44 2017 2018 2019 180,000 499,960 2,327,514 $679,960 $2,327,514 $0 6i111 C $2,012,520 $2,012,520 Village of Oak Brook 2016-2020 Five -Year Financial Plan WATER FUND Capital Improvement Program 2015 Budget 2015 Estimate 2016 Distribution Improvements: Replacement of water meters and data collectors. 180,000 180,000 185,400 Luthin Road Mockingbird/Camelot/Luthin Water Main 1,440,090 1,440,090 Concord/Ivy/Devonshire Watermain Charleton/Kimberly/Pembroke/Shelburne Water Main Cambridge/Carlisle/Heather Total Capital Improvement Program $1,620,090 $1,620,090 $185,400 44 2017 2018 2019 180,000 499,960 2,327,514 $679,960 $2,327,514 $0 6i111 C $2,012,520 $2,012,520 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND 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. 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 ($251,005), 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 2017 — 2020. 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. 45 Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan _ Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Cash Balance at Year -End $330,675 Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $3,988,950 $3,746,705 $3,414,165 $3,477,118 $3,551,943 $3,627,692 $3,707,240 3,413,600 3,273,245 3,166,745 3,266,761 3,374,112 3,485,358 3,600,652 62,220 162,220 0 0 0 0 0 513,130 311,240 247,420 210,357 177,831 142,333 106,588 330,675 330,675 206,040 243,460 188,817 180,648 147,982 843,805 641,915 453,460 453,817 366,648 322,982 254,570 0 0 0 0 0 0 0 0 0 0 0 0 0 0 843,805 641,915 453,460 453,817 366,648 322,982 254,570 510,500 435,875 210,000 265,000 186,000 175,000 165,000 $333,305 $206,040 $243,460 $188,817 $180,648 $147,982 $89,570 46 47 2019 Village of Oak Brook $3,516,692 $3,595,540 2016-2020 Five -Year Financial Plan 111,700 SPORTS CORE FUND -CONSOLIDATED $3,707,240 Revenue Projections 2015 Budget 2015 Estimate 2016 2017 2018 Sports Core Operations $3,867,450 $3,644,595 $3,302,665 $3,366,118 $3,440,243 Golf Surcharge 121,500 102,110 111,500 111,000 111,700 Total $3,988,950 $3,746,705 $3,414,165 $3,477,118 $3,551,943 47 2019 2020 $3,516,692 $3,595,540 111,000 111,700 $3,627,692 $3,707,240 Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Long -Range Operating Budget a 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Personnel $1,474,035 $1,383,775 $1,288,605 $1,346,592 $1,407,189 $1,470,512 $1,536,685 Materials and Supplies 716,910 697,925 677,230 694,161 711,515 729,303 747,535 Operations and Contractual 1,222,655 1,191,545 1,200,910 1,226,008 1,255,408 1,285,543 1,316,432 Total $3,413,600 $3,273,245 $3,166,745 $3,266,761 $3,374,112 $3,485,358 $3,600,652 Exceptional Charges Transfer to General Fund 62,220 62,220 0 0 0 0 0 Transfer from Golf Surcharge 100,000 Total $62,220 $162,220 $0 $0 $0 $0 $0 Capital Improvement Program Sports Core Operations 360,500 309,030 05,000 265,000 186,000 175,000 165,000 Golf Surcharge 150,000 126,845 75,000 0 0 0 0 Total $510,500 $435,875 $210,000 $265,000 $186,000 $175,000 $165,000 Total Budget $3,986,320 $3,871,340 $3,376,745 $3,531,761 $3,560,112 $3,660,358 $3,765,652 a VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Operations 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 2017 -2020, 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 decrease 22% over the 2015 budgeted amounts. In 2017 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 decrease by $85,450, or 14% due to a reduction in rentals and no grant revenue in 2016. In 2017 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 2016 budget includes $135,000 in capital improvements. ELI Unrestricted Cash Available, January 1, 2015 $69,643 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $3,867,450 $3,644,595 $3,302,665 $3,366,118 $3,440,243 $3,516,692 $3,595,540 3,413,600 3,273,245 3,166,745 3,266,761 3,374,112 3,485,358 3,600,652 62,220 62,220 0 0 0 0 0 391,630 309,130 135,920 99,357 66,131 31,333 (5,112) 69,643 69,643 69,743 70,663 (94,980) (214,849) (358,515) 461,273 378,773 205,663 170,020 (28,849) (183,515) (363,627) 0 0 0 0 0 0 0 461,273 378,773 205,663 170,020 (28,849) (183,515) (363,627) 360,500 309,030 135,000 265,000 186,000 175,000 165,000 100,773 69,743 70,663 (94,980) (214,849) (358,515) (528,627) 50 Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Bath & Tennis Club: General Administration Miscellaneous ($100) $580 $200 $500 $500 $500 $500 Grants $9,300 Transfer From General Fund 213,705 482,450 251,005 250,000 250,000 250,000 250,000 Transfer From Infrastructure Fund 24,000 24,000 24,000 24,000 24,000 24,000 24,000 Transfer From Water Fund 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Swimming Grants 85,000 Membership Allocation 1,760 Membership Allocation 178,290 133,170 138,270 142,418 146,691 151,091 155,624 Swim Fees 31,000 32,645 32,760 33,743 34,755 35,798 36,872 Tennis Grants 15,000 Membership Allocation 97,645 75,485 78,110 80,453 82,867 85,353 87,913 Tennis Lessons and Programs 47,650 33,180 33,650 34,660 35,699 36,770 37,873 Beverage & Pro Shop Revenue 225 200 200 206 212 219 225 Miscellaneous 200 200 200 Polo Food Sales 30,000 15,600 0 0 0 0 0 Sponsorships, Memberships, & Admissions 192,220 118,225 0 0 0 0 0 Open Fields Grants 15,000 Field Rental 250,000 260,000 265,000 265,000 272,950 281,139 289,573 Sponsorships, Memberships, & Admissions 180,000 185,010 180,000 180,000 180,000 180,000 180,000 Total Bath & Tennis Club $1,377,135 $1,370,505 $1,011,395 $1,018,980 $1,035,674 $1,052,869 $1,070,580 51 Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections 52 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Food & Beverage: Clubhouse Food & Beverage Grants 63,500 Rental Income 180,000 147,000 160,000 168,000 176,400 185,220 194,481 Miscellaneous 2,000 0 0 0 0 0 0 Poolside Grill Food Sales 41,000 36,000 41,000 42,230 43,497 44,802 46,146 Beverage/Liquor Sales 17,500 13,625 17,500 18,025 18,566 19,123 19,696 Golf Club Lounge Food Sales 112,350 101,000 112,350 115,721 119,192 122,768 126,451 Beverage/Liquor Sales 180,000 180,000 180,000 185,400 190,962 196,691 202,592 Candy/Cigarette Sales 9,150 9,200 9,200 9,476 9,760 10,053 10,355 Total Food & Beverage $605,500 $486,825 $520,050 $538,852 $558,377 $578,656 $599,720 Golf Club: Memberships $185,150 $167,150 $167,150 $172,165 $177,329 $182,649 $188,129 Golf Fees 900,000 754,445 838,000 863,140 889,034 915,705 943,176 Merchandise Sales 195,415 195,850 195,650 195,650 195,650 195,650 195,650 Driving Range Fees 256,000 224,350 232,000 232,000 232,000 232,000 232,000 Cart Rental Fees 346,000 304,600 335,600 342,312 349,158 356,141 363,264 Grants Miscellaneous 2,250 2,820 2,820 2,820 2,820 2,820 2,820 Total Golf Club $1,884,815 $1,787,265 $1,771,220 $1,808,087 $1,845,992 $1,884,966 $1,925,039 Total Sports Core Operations $3,867,450 $3,644,595 $3,302,665 $3,365,918 $3,440,043 $3,516,492 $3,595,340 52 Personnel Materials and Supplies Operations and Contractual Total Exceptional Charges Transfer to General Fund Total Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Long -Range Operating Budget 2015 Budget 2015 Estimate 2016 2017 0 $1,407,189 $1,470,512 $1,536,685 $1,474,035 $1,383,775 $1,288,605 $1,346,592 716,910 697,925 677,230 694,161 1,222,655 1,191,545 1,200,910 1,226,008 $3,413,600 $3,273,245 $3,166,745 $3,266,761 2018 2019 2020 0 0 $1,407,189 $1,470,512 $1,536,685 711,515 729,303 747,535 1,255,408 1,285,543 1,316,432 $3,374,112 $3,485,358 $3,600,652 62,220 62,220 0 0 0 0 0 $62,220 $62,220 $0 $0 $0 $0 $0 $360,500 $309,030 $135,000 $265,000 $186,000 $175,000 $165,000 $3,836,320 $3,644,495 $3,301,745 $3,531,761 $3,560,112 $3,660,358 $3,765,652 53 CAPITAL REQUESTS SPORTS CORE FUND Bath & Tennis General Operations: New entrance for administratioi 25,000 15,000 25,000 25,000 Total Program 811 25,000 15,000 25,000 25,000 Bath & Tennis Club: Hot Water Tank Replacement Locker Room Improvements Pool Awning Replacement Pool Painting/Repairs New Air Conditioner Structural Support repairs Pool Deck Refurbish Pool Deck Furniture Total Program 812 20,000 38,000 - - - - - 20,000 20,000 10,000 500 - 10,000 10,000 - - 20,000 15,000 23,660 15,500 10,000 20,000 10,000 10,000 65,500 40,000 31,500 - - - - - - 20,000 11,340 - - - - - 10,000 - - 10,000 20,000 - - - 10,000 - 5,000 - 15,000 105,000 105,000 25,500 30,000 30,000 15,000 40,000 140,500 Fencing for Courts 15,000 19,500 - - 20,000 20,000 Move Pro Shop to Clubhouse - - 5,000 5,000 - - 10,000 Pro Shop Roof Replacement - - - - - 15,000 15,000 Total Program 813 15,000 19,500 5,000 5,000 20,000 15,000 45,000 54 CAPITAL REQUESTS SPORTS CORE FUND SC Bldg. Roof 20,000 20,000 Drainage - Open Fields 15,000 3,000 10,000 - 10,000 Total Program 816 15,000 3,000 10,000 20,000 30,000 Food and Beverage: Exterior Stain and Soffit Repair 42,000 36,500 - - - New Air Conditioner 40,000 40,000 - - Kitchen Equip. Replacement - - - 20,000 20,000 Drainage - Kitchen Door - - - - - - Dishwasher Replacement - - - 25,000 25,000 Roof Scuppers - - - 20,000 20,000 Dining Room Improv. 12,500 12,500 - - - Saddle Room Floor - - - 20,000 - 20,000 Clubhouse Furniture 11,000 11,000 - - 10,000 10,000 Total Program 821 105,500 100,000 65,000 30,000 95,000 Golf Club: Exterior Staining 55 15,000 15,000 (Village of Oak Brook CAPITAL REQUESTS SPORTS CORE FUND Tractors/Mowers 30,000 29,915 30,000 50,000 80,000 Dump Truck - - - 20,000 20,000 Seeder 31,000 31,000 56 Total 016 2017 2018 2019 2020 2016-2020 Lighting - - 15,000 - 15,000 Kitchen Dishwasher 15,000 15,000 - - 15,000 Carpeting Replacement - - - - 25,000 - 25,000 Clubhouse Furniture 20,000 9,865 - 20,000 - - 20,000 HVAC Improvements 10,000 8,135 - 10,000 10,000 - 20,000 Golf Car Ramp Replacement - - - 65,000 - - 65,000 Total Program 831 45,000 18,000 15,000 110,000 50,000 - 175,000 Ball Dispenser Replacement - - 7,500 - - - 7,500 Total Program 832 - - 7,500 - 7,500 New Golf Car Fleet - - - 65,000 65,000 130,000 Battery Replacement Golf Carts - - 50,000 - - 50,000 Total Program 833 - - 50,000 65,000 65,000 180,000 Tractors/Mowers 30,000 29,915 30,000 50,000 80,000 Dump Truck - - - 20,000 20,000 Seeder 31,000 31,000 56 CAPITAL REQUESTS SPORTS CORE FUND - 2015, Total - 2015 Projected 2016 2017 2018 2019 2020 2016-2020 Deep Tine Aerifier 25,000 - 25,000 Sprayer - - - - 45,000 45,000 Greens Mowers 20,000 18,615 27,000 - - - - 27,000 Total Program 834 50,000 48,530 27,000 30,000 101,000 25,000 45,000 228,000 Drainage Study - - - - - - - - Drainage Project 150,000 126,845 75,000 75,000 Total Program 844 150,000 126,845 75,000 - - - - 75,000 Total Sports Core Fund 510,500 435,875 210,000 265,000 186,000 175,000 165,000 1,001,000 57 VILLAGE OF OAK BROOK 2016-2020 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 38,630 rounds per year. Capital Improvements: Drainage project is included at $75,000 in this program for 2016. .? Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Restricted Cash Available, January 1, 2015 $261,032 Estimated Income $121,500 $102,110 $111,500 $111,000 $111,700 $111,000 $111,700 Less Estimated Operating Expenses Operating Budget 0 0 0 0 0 0 0 Exceptional Charges 0 100,000 0 0 0 0 0 Estimated Net Operating Income 121,500 2,110 111,500 111,000 111,700 111,000 111,700 Add Beginning of Year Cash Balance 261,032 261,032 136,297 172,797 283,797 395,497 506,497 Estimated Available Funds 382,532 263,142 247,797 283,797 395,497 506,497 618,197 Interfund Loan Repayment (General Fund) 0 0 0 0 0 0 0 Adjusted Cash Available 382,532 263,142 247,797 283,797 395,497 506,497 618,197 Less Capital Improvement Program 150,000 126,845 75,000 0 0 0 0 Estimated Restricted Cash Balance at Year -End $232,532 $136,297 $172,797 $283,797 $395,497 $506,497 $618,197 59 Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Revenue Projections Account 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Golf Surcharge $120,000 $99,110 $110,000 $110,000 $110,000 $110,000 $110,000 Interest 1,500 3,000 1,500 1,000 1,700 1,000 1,700 Total Revenue $121,500 $102,110 $111,500 $111,000 $111,700 $111,000 $111,700 Village of Oak Brook 2016-2020 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Long -Range Operating Budget Exceptional Charges 2015 Budget Transfer Out Total Exceptional Charges 2015 Estimate 2016 100,000 61 2017 2018 2019 2020 CAPITAL REQUESTS GOLF SURCHARGE ACCOUNT Drainage Project 150,000 126,845 75,000 Total Program 844 150,000 126,845 75,000 75,000 Total Golf Surcharge 150,000 126,845 75,00 SIGNIFICANT NON -ROUTINE PROJECTS Drainage Project - The front nine holes of the Oak Brook Golf Course is located on a flood plain. Over the past 5 years the occurrence of flooding has become more frequent. The drainage project would de -water the golf holes in a manner more efficient to minimize flood damage. For 2016, dreging the channel on hole #9 and replacement of the putting green adjacent to the channel. 62 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN SELF-INSURANCE FUND 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. Operatimis: 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 2016, claims are projected based on various rates used to set equivalent premiums. For 2017 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 2016. 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. 63 Unrestricted Cash Available, January 1, 2015 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $713,325 Village of Oak Brook 2016-2020 Five -Year Financial Plan SELF-INSURANCE FUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $2,914,915 $2,725,135 $2,991,035 $3,256,730 $3,791,775 $4,223,700 $4,709,830 0 0 0 0 0 0 0 2,839,400 2,952,200 2,977,500 3,191,725 3,422,775 3,671,285 3,938,410 75,515 (227,065) 13,535 65,005 369,000 552,415 771,420 713,325 713,325 486,260 499,795 564,800 933,800 1,486,215 788,840 486,260 499,795 564,800 933,800 1,486,215 2,257,635 788,840 486,260 499,795 564,800 933,800 1,486,215 2,257,635 0 0 0 0 0 0 0 $788,840 $486,260 $499,795 $564,800 $933,800 $1,486,215 $2,257,635 64 Village of Oak Brook 2016-2020 Five -Year Financial Plan SELF-INSURANCE FUND Revenue Projections Transfer from General Corporate Fund Total Revenue $2,914,915 $2,725,135 $2,991,035 $3,256,730 $3,791,775 $4,223,700 $4,709,830 65 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Village Contributions $1,519,790 $1,345,000 $1,540,910 $1,656,480 $1,987,775 $2,186,550 $2,405,205 Participant Contributions 380,000 375,000 400,000 440,000 528,000 633,600 760,320 Park District Contributions 500,000 486,500 510,000 561,000 617,100 678,810 746,690 Retiree Contributions 515,000 518,525 540,000 594,000 653,400 718,740 790,615 Cobra Contributions 0 0 0 5,000 5,000 5,000 5,000 Interest 125 110 125 250 500 1,000 2,000 Transfer from General Corporate Fund Total Revenue $2,914,915 $2,725,135 $2,991,035 $3,256,730 $3,791,775 $4,223,700 $4,709,830 65 Village of Oak Brook 2016-2020 Five -Year Financial Plan SELF-INSURANCE FUND Long -Range Operating Budget 2015 Budget 2015 Estimate Exceptional Charges 2017 2018 Stop -Loss Premiums $228,000 $280,000 HMO Premiums 350,000 295,000 Life Insurance Premiums 23,000 19,800 Health Claims 1,880,000 2,050,000 Dental Claims 155,000 140,000 Plan Administration Expense 203,400 167,400 Total Exceptional Charges $2,839,400 $2,952,200 66 2016 2017 2018 2019 2020 $278,000 $298,340 $320,255 $343,855 $369,290 300,000 318,000 337,080 357,305 378,745 23,000 23,690 24,400 25,135 25,890 2,050,000 2,214,000 2,391,120 2,582,410 2,789,000 140,000 145,600 151,425 157,480 163,780 186,500 192,095 198,495 205,100 211,705 $2,977,500 $3,191,725 $3,422,775 $3,671,285 $3,938,410 VILLAGE OF OAK BROOK 2016-2020 FIVE-YEAR FINANCIAL PLAN GARAGE FUND 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: Fuel Island concrete for $40,000 is budgeted in 2016. 67 Unrestricted Cash Available, January 1, 2015 $89,508 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2016-2020 Five -Year Financial Plan GARAGEFUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $811,695 $812,470 $700,060 $800,075 $840,069 $865,345 $891,385 774,650 708,515 724,380 743,759 763,661 784,100 805,089 43,565 43,565 40,415 48,926 51,048 53,275 55,615 (6,520) 60,390 (64,735) 7,391 25,361 27,970 30,681 89,508 89,508 129,898 25,163 23,054 48,414 76,384 82,988 149,898 65,163 32,554 48,414 76,384 107,066 0 0 0 0 0 0 0 0 0 0 0 0 0 0 82,988 149,898 65,163 32,554 48,414 76,384 107,066 25,000 20,000 40,000 9,500 0 0 20,000 $57,988 $129,898 $25,163 $23,054 $48,414 $76,384 $87,066 I Village of Oak Brook 2016-2020 Five -Year Financial Plan GARAGEFUND Revenue Projections 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Vehicle O & M Charges $811,680 $811,680 $700,010 $800,000 $840,000 $865,200 $891,156 Interest 15 40 50 75 69 145 229 Miscellaneous 750 Total Revenue $811,695 $812,470 $700,060 $800,075 $840,069 $865,345 $891,385 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 Brake Lathe Total Capital Improvement Program Total Budget Village of Oak Brook 2016-2020 Five -Year Financial Plan GARAGEFUND Long -Range Operating Budget 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $234,595 $233,475 $253,940 $261,558 $269,405 $277,487 $285,812 309,165 246,025 232,670 238,487 244,449 250,560 256,824 230,890 229,015 237,770 243,714 249,807 256,052 262,454 $774,650 $708,515 $724,380 $743,759 $763,661 $784,100 $805,089 $37,075 $37,075 $40,415 $42,436 $44,558 $46,785 $49,125 6,490 6,490 0 6,490 6,490 6,490 6,490 $43,565 $43,565 $40,415 $48,926 $51,048 $53,275 $55,615 25,000 20,000 $20,000 $40,000 $9,500 $25,000 $20,000 $40,000 $9,500 $0 $0 $20,000 $843,215 $772,080 $804,795 $802,185 $814,709 $837,375 $880,704 70 VILLAGE OF OAK BROOK 2016-2020 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 2016, the General Corporate Fund is budgeted to contribute $145,000 less towards the funding of the equipment replacement needs. Exceptional Charges: There is a transfer budgeted to the General Fund of $662,600 in 2016 to help pay for police and fire pension costs. Capital 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. 71 Unrestricted Cash Available, January I, 2015 $2,347,687 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2016-2020 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Summary 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 $791,470 $872,185 $655,595 $875,590 $895,115 $1,047,295 $1,040,635 0 0 0 0 0 0 0 0 0 662,600 0 0 0 0 791,470 872,185 (7,005) 875,590 895,115 1,047,295 1,040,635 2,347,687 2,347,687 2,087,947 1,334,872 1,453,942 1,255,772 1,982,112 3,139,157 3,219,872 2,080,942 2,210,462 2,349,057 2,303,067 3,022,747 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,139,157 3,219,872 2,080,942 2,210,462 2,349,057 2,303,067 3,022,747 718,600 1,131,925 746,070 756,520 1,093,285 320,955 665,525 $2,420,557 $2,087,947 $1,334,872 $1,453,942 $1,255,772 $1,982,112 $2,357,222 72 Village of Oak Brook 2016-2020 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Revenue Projections 73 2015 Budget 2015 Estimate 2016 2017 2018 2019 2020 Vehicle Replacement Charges 731,470 731,470 586,185 817,885 836,095 988,865 977,250 Interest 10,000 15,000 16,000 7,705 9,020 8,430 13,385 Sales/Insurance Proceeds 50,000 125,715 53,410 50,000 50,000 50,000 50,000 Total Revenue $791,470 $872,185 $655,595 $875,590 $895,115 $1,047,295 $1,040,635 73 2015 Budget Exceptional Charges Transfer to General Fund Total Exceptional Charges $0 Village of Oak Brook 2016-2020 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Long -Range Operating Budget 2015 Estimate 2016 2017 2018 2019 $662,600 $0 $662,600 $0 $0 74 Newel $0 $0 CAPITAL REQUESTS EQUIPMENT REPLACEMENT FUND General Management Vehicles 15,000 15,000 Engineering Vehicles - - 35,000 - - 35,000 Police Vehicles 199,000 209,380 156,820 269,940 321,340 43,050 277,640 1,068,790 Fire and EMS Vehicles 265,000 229,030 285,000 319,210 408,985 212,905 183,855 1,409,955 Code Enforcement Vehicles 39,550 - - - - 39,550 Public Works Vehicles 78,600 629,075 50,500 99,000 233,170 - 204,030 586,700 Water Vehicles 176,000 64,440 214,200 68,370 79,790 65,000 - 427,360 Total Program 342 718,600 1,131,925 746,070 756,520 1,093,285 320,955 665,525 3,582,355 Total Equip Replacement Fund 718,600 1,131,925 746,070 756,520 1,093,285 320,955 665,525 3,582,355'> 75