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2013-2017 Five Year Plan1SECTION Introduction General Assumptions Relationship to the Annual Budget General Corporate Fund Hotel/Motel Tax Fund Motor Fuel Tax Fund Foreign Fire Insurance Tax Fund Infrastructure Fund VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN TABLE OF CONTENTS Promenade Special Tax Allocation Fund Water Fund Sports Core Fund Self~ Insurance Fund Garage Fund Equipment Replacement Fund Police and Firefighters' Pension Funds PAGE 2 2 3 5 18 23 27 31 36 40 45 59 63 67 71 2INTRODUCTION VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN 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 thirteen 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 accow1ting principles as promulgated by the Governmental Accounting Standards Board), the Five-Year Financial Plan, like the mmual 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 arc over $5,000. The summary for each fund ref1ects the revenue and expenditure projections and presents a rolling five-year operating statement, beginning with cash available as of January 1, 2012 as reported in the audited financial statements as of December 31,2011. GENERAL ASSUMPTIONS The principal assumptions for the Five-Year Financial Plan involve the rates for general inf1ation, "personnel inf1ation" (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 2013-2017 Five-Year Financial Plan is based on the following general assumptions: • Inf1ation is the measure of the increase in the cost of goods and services. Inf1ation is measured by the Consumer Price Index and impacts most expenditure categories. For the purpose of this report, inf1ation for the pmchase of goods and services is forecasted at 2.5%. • Personnel inf1ation, (including benefits, training and merit adjustments applicable to personnel not at top-of~grade) generally at 2.0% above the general inflation rate (or 4.5% per year). 3VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN • Interest earnings on invested funds at rates ranging from less than I% to 6. 75%, depending upon the fund, the type and length of investment. • Sales tax receipts for 2013 are projected to decrease .90% from the 2012 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 2013-2017, the long-range operating budget projections arc 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 pmtially offset the effects of compounding of the inflation assumptions in the later years. Other assumptions specific to particular funds are described in the nan·ative preceding the presentation of each fund. RELATIONSHIP TO THE ANNUAL BUDGET For 2013, staff has prepared the 2013-2017 Five-Year Plan, 2013 Budget, and 2013 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 2013 Budget and 2013-2017 continues the Village Board directive that sta1Tshould prioritize items for inclusion in the 2013 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 grm1t lunding, 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. 4VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN While there continues to be a slow progression in our revenue stream projected for 2013, staff has strived to minimize their affect on services to our residents and businesses. The General Corporate Fund supports the majority of the Village operations and due to the slow recove1y it has had a major impact on this fund because of its reliance on sales tax and no municipal property tax. The actual 2013 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-Y car 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 Summmy"). The Fund Summmy can be compared to the first year of the relevant Five-Year Financial Plan Summmy to ensure that the Budget matches the first year of the Five-Year Plan for that fund. 5DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN GENERAL CORPORATE FUND 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 depmtments. Capital improvements, contributions to pension funds (in lieu of property tax levies), transfers to the Garage and Equipment Replacement Funds (through user chm·ges), 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 is presented as a balanced budget in which the revenues meet or exceed expenditures and the cash reserves are not utilized. General Fund Revenues have increased for the 2013 budget, projecting at $393,460, or 1.9% more than the 2012 budgeted revenues. General Fund expenses have increased by $354,810, or 1.8% compared to 2012 budgeted expenses. The following highlights some of the major budget issues facing the Village for 2013: • With sales tax being one of the major sources of revenues that the Village has which supports our core services including police and fire protection, it remains relatively flat. This poses a challenge for the Village as costs of doing business continues to increase. • Effective January 1, 2011, the State of Illinois passed legislation that increased the individual income tax rate fl·om 3% to 5% and the corporate rate from 4.8% to 7%. However, the legislation did not provide municipalities with any additional share of the increased taxes. According to the IML (Illinois Municipal League), the actual income tax receipts distributed to municipalities in Fiscal Year 2012 (May I to April 30) was $81.44 per person, or 4.5% higher than in FY 2011. The IML is estimating for FY 2013 to be $88.00 per person, or 8.1% higher than in FY 2012. For 2013, income tax revenues are projected at $83.50 per person for calendar yem· Janumy-December 2013 as a means of being conservative in this economic environment. • Utility tax revenues are comprised of telecommunications, gas and electricity. Telecommunications tax revenues are based on a 6% tax on gross charges for communication services. The gas and electricity are based on the usage which fluctuate with weather conditions and consumer usage. For 2013, the utility tax revenues are projected to be $4.9 million, an increase of I%. 6VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN • With the recent changes in pension legislation, which allows municipalities until 2040 to fund 90% of their pension obligations there is some relief extended to municipalities. However, additional measures are necessary to ensure the Village can meet its future pension obligations. For 2014 and thereafter, Police and Firefighters' Pension Fund contributions are projected to increase slightly due to a turnaround in the market returns; the actual amount will not be determined until an actuarial study is completed in early 2013 and could change depending on the investment markets for the remainder of the year as well as possible changes in actuarial assumptions. The funding level of the Police Pension Fund decreased ti·om 73.40% to 68.60% and the Firefighters' Pension Fund decreased from 61.78% to 61.07% in 2011. • The General Fund Capital Improvement plan includes limited projects this year due to budget constraints. The Village's 2013 -2017 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 tive-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 2013, sales tax revenue is projected to be $10,900,000, which is a decrease by .90% of2012 estimated collections. The 2013 budgeted sales tax is predicated on the following factors: Oakbrook Center mall, which is one of the Village's largest tax payers, will undergo significant renovation which will be completed in late 2013. New tenants to new spaces should increase sales tax in the second half of the year and Tesla, an electric car dealer, should start to see some sales in pmt of 2013. Pinstripes, which opened in September, 2012 will be another new large sales lax producer to Oak Brook. Receipts from the utility tax on electric, natural gas, and telecommunications service are expected to end the year at $4.9 million compared to $4.6 million in the 2012 budget. Utility tax collections for 2013 are budgeted to increase by $50,000 or 1.0% fi·om the 2012 estimated amount. Inflationary increases of 3% have been assumed in subsequent years 2014-2017. State shared revenues in total are projected using information provided by the Illinois Municipal League and for 2013 are projected to increase by 12%. The State Income Tax is expecting to increase by 13% than in FY 2012, Use tax is expected to increase by I4% than in FY 2012 m1d Replacement Tax is expecting to increase by I 0%. State shared revenues are projected to increase by 3% in years 2014-2017. The rates imposed for a number of license and fee categories, such as liquor licenses, ambulance fees, and building permits are projected to increase and 7VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN should positively impact revenues. Interest revenue has significantly declined compared to prior years, and only $30,000 is expected for 2013, a decrease of $30,000 from the 2012 Budget due to low interest rates. Most other revenue sources are projected to increase from 0% to 3% per year for the duration of the Five-Year Financial Plan. Operations: Legislative and General Management. The Legislative and General Management overall budget increased ii·om the 2012 budget by $178,640, or 6%. The Board of Trustees includes residential enhancement committee consulting fees of $30,000, lobbyist services for $30,000 and team building of $5,000. The Legal budget increased slightly by $49,575 in relation to litigation contingencies. The General Management program includes a marketing consultant for $25,000 that will develop a marketing strategic plan. With the current intern position ending in 2012, it will be replaced with a marketing/communications intem for 2013. The Human Resources budget includes an increase of $35,000 in legal services, $15,000 for customer service and $25,000 for management education programs. Information Teclmology services includes a $45,000 telephone system upgrade. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Financial Services. Financial Services accounting and reporting includes printing services for outsourcing the printing and mailing of water bills and notices. The General Services program in Legislative and General Management was transferred to the Customer Service program directly repmting to finance. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Public Works. There are no significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Librmy. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Police. The budget decreased by $151,905, or 2.1% compared to the 2012 budget which is due to the consolidation of the Village's Communication Center with DuComm. Police Services Management includes a full year salary for the new police chief as well as a Deputy Chief. One-fourth cost of a new DuConun south building for $78,000 is included in this program to set aside for the potential of a contribution towards a new building divided amongst vm·ious users of the facility. The Police Field Services budget includes the cost of a new K-9 with equipment and pole mounted speed display board. The Police General Support personnel increased due to a commander being transferred fi·om police investigations to this program. The Communication Center budget is now part of Police Support Services budget due 8VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN to the consolidation with DuComm in July. Police Support Services includes DuComm dues of $288,800 since transfening our communications center operations to DuComm. The Administrative Adjudication program was transferred to Police Support Services. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Fire. The Fire department budget increased by $473,620, or 8.3% compared to the 2012 Budget. The budget includes higher vehicle operation and maintenance expenditures and vehicle replacement costs due to the replacement of higher priced vehicles such as an ambulance or fire engine. Fire, Rescue, and EMS Operations includes the replacement of fire gear for $52,800. Recue and Fire Service Management includes DuComm Dues of $118,040 due to the consolidation of our communications center with DuComm in July. One-fourth cost of a new DuComm south bLtilding for $24,505 is included in this program to set aside for the potential of a contribution towards a new building divided amongst various users of the facility. Emergency Medical Services budget includes $74,000 for the replacement of cardiac monitors and AED's as these are critical items. There are no other significant changes projected in the operating budgets of this department, beyond application of the inllation assumptions. Conmmnity Development. There are no other signilicant changes in the operating budgets of this department, beyond application of the inflation assumptions. Exceptional Charges: Exceptional Charges in the General Cmporate Fund include: • Contributions to the Police and Firefighters' Pension Funds (in lieu of property taxes). These contributions are expected to increase by approximately 3% 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. • Vehicle replacement charges are 50% funded in the General Corporate Fund. 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 2014-2017 and will continue to be a healthy fund. If the General Fund does not make contributions in 2014-2017, then the Equipment Replacement fund would have an estimated six years before it depletes all of its cash. • An mmual transfer to the Inli·astructure Fund in order to o!Tset costs (primarily administrative) funded by the Infrastructure Fund that relate to General Corporate Fund activities (such as Forestry, Buildings & Grow1ds, etc.). 9Capital Improvements: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN Significant capital expenditures reflected in the Plan include continued outlays for maintaining our current technology systems, repairs and maintenance of Heritage Center, improvements to the police firing range, reception area remodeling, HV AC and heating improvements to Fire Station #93, replacement of fire gear and critical equipment in the fire department. 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 eve1y etiort to maintain a six month reserve fund for operating expenses. The six month reserve fund is expected to end 2013 at 7.4months 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. 10Unrestricted Cash Available, Janumy 1, 2012 $10,730,304 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating I nco me Add Beginning of Year Cash Balance Estimated A vail able Funds Intcrfund Loan Inter fund Loan Repayment Adjusted Cash A vai1ab1e Less Capital Improvement Program Unrestricted Cash Available at Year~End 6 Months Operating Village of Oak Brook 2013-2017 Five-Year Financial Plan GENERAL CORPORATE FUND Summary 2012 Budget 2012 Estimate 2013 $19,810,755 $20,310,170 $20,204,215 16,610,870 16,213,350 16,656,340 2,374,460 2,547,895 2,803,925 825,425 1,548,925 743,950 10,730,304 10,730,304 11,375,309 11,555,729 12,279,229 12,ll9,259 0 (183,900) 0 0 0 0 11,555,729 12,095,329 12,119,259 821,425 720,020 701,300 $10,734,304 $ll,375,309 $11,417,959 $8,973,670 $8,973,670 $9,244,485 2014 2015 2016 2017 $20,649,346 $21,238,173 $21,736,343 $22,244,281 16,364,656 16,878,600 17,595,603 18,149,680 3,124,231 3,201,398 3,286,982 3,363,630 1,160,458 1,158,175 853,758 730,970 11,417,959 11,519,117 11,964,792 12,348,550 12,578,417 12,677,292 12,818,550 13,079,520 0 0 0 0 0 0 0 0 12,578,417 12,677,292 12,818,550 13,079,520 1,059,300 712,500 470,000 434,000 $11,519,117 $11,964,792 $12,348,550 $12,645,520 $9,265,432 $9,554,202 $9,948,282 $10,256,811 11Village of Oak Brook 2013-2017 Five-Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2012 2012 Description Budget Estimate 2013 2014 2015 2016 2017 General Sales Tax 10,655,000 11,000,000 10,900,000 11,227,000 11,563,810 11,910,724 12,268,046 State Income Tax 585,000 680,000 660,000 673,200 686,664 700,397 714,405 Replacement Tax 259,660 285,000 285,000 290,700 296,514 302,444 308,493 York Township Road and Bridge Tax 50,000 40,000 40,000 40,000 40,000 40,000 40,000 State Income Tax-Use Tax 110,400 116,500 126,000 130,000 134,000 138,000 142,000 Charitable Games Tax 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Grants 88,800 0 111,420 10,000 10,000 10,000 10,000 Telecommunications Tax/Utility 4,640,000 4,860,000 4,910,000 4,960,000 5,008,000 5,060,000 5,110,000 Total Intergovernmental 16,389,860 16,982,500 17,033,420 17,331,900 17,739,988 18,162,566 18,593,944 Liquor License 140,000 140,000 140,000 140,000 140,000 140,000 140,000 Scavenger Licenses 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Taxi Licenses 26,000 29,000 29,000 29,000 29,000 29,000 29,000 Tobacco License 1,700 1,700 1,700 1,700 1,700 1,700 1,700 Raffle Licenses 300 325 325 325 325 325 325 Building Permits 290,000 415,000 335,000 335,000 335,000 335,000 335,000 Electrical Permits 158,000 200,000 200,000 200,000 200,000 200,000 200,000 Plumbing Permits 15,000 30,000 22,000 22,000 22,000 22,000 22,000 Alarm Application Fee 59,000 60,000 55,000 55,000 55,000 55,000 55,000 Annual Alarm Pennit Fee 150 100 150 150 150 150 150 Accessmy Suucture Permits 26,000 20,000 23,000 23,000 23,000 23,000 23,000 HV AC Penn its 41,000 48,000 47,500 47,500 47,500 47,500 47,500 Demolition Permits 9,000 18,000 15,000 15,000 15,000 15,000 15,000 Application/Occupancy Fees 45,000 44,000 45,000 45,000 45,000 45,000 45,000 Miscellaneous Licenses & Petmits 20,000 37,000 30,000 30,000 30,000 30,000 30,000 Solicitation Permits 750 750 750 750 750 750 750 Total Licenses and Petmits 839,900 1,051,875 952,425 952,425 952,425 952,425 952,425 12Village of Oak Brool< 2013-2017 Five-Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2012 2012 Description Budget Estimate 2013 2014 2015 2016 2017 Elevator Inspections 84,000 95,000 95,000 97,850 100,786 I 03,809 106,923 Zoning/Subdivision Appl. Fees 10,500 16,000 11,000 11,000 11,000 11,000 11,000 Plan Review Fees 41,000 41,000 40,000 40,000 40,000 40,000 40,000 Building/Inspection Fees 163,000 170,000 165,000 165,000 165,000 165,000 165,000 Ambulance Fees 500,000 568,000 570,000 587,100 604,713 622,854 641,540 Toll Road Fire Service 50,000 38,200 40,000 41,200 42,436 43,709 45,020 Special Smvices-EMS 20,000 15,000 18,000 18,900 19,845 20,837 21,879 Special Services-Fire 6,000 4,000 4,000 4,200 4,410 4,631 4,862 False Alarm-Fire 15,000 I 0,875 11,000 11,000 11,000 11,000 11,000 Compliance 0 1,000 3,000 3,000 3,000 3,000 3,000 Fingerprinting 3,500 3,500 3,700 3,700 3,700 3,700 3,700 Special Services-Police 180,000 60,000 60,000 63,000 66,150 69,458 72,930 Field Services-Police 200 150 150 150 150 150 150 Misc. Support Services-Police 2,000 2,800 2,000 2,000 2,000 2,000 2,000 False Alann-Police 32,000 25,000 25,000 25,000 25,000 25,000 25,000 Eng. Plan Review & Inspection 10,000 8,000 I 0,000 10,000 I 0,000 I 0,000 10,000 Subdivision Review & Inspection 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Fire Plan Review Fees 14,500 16,000 15,000 15,000 15,000 15,000 15,000 Library Services 10,000 10,000 8,000 8,000 8,000 8,000 8,000 Bad Debt (100,000) (248,000) (200,000) (200,000) (200,000) (200,000) (200,000) Total Charges for Services 1,043,700 838,525 882,850 908,100 934,190 961,148 989,005 Court Fines 205,000 182,000 200,000 206,000 212,180 218,545 225,102 Village Fines 48,000 30,000 50,000 50,000 50,000 50,000 50,000 Training Reimbursement-Police 2,360 2,360 2,360 2,360 2,360 2,360 2,360 Administrative Towing Fees 90,000 80,000 80,000 84,000 88,200 92,610 97,241 Administrative Fines 35,000 0 12,000 12,600 13,230 13,892 14,586 Library Fines 11,000 11,000 8,000 8,000 8,000 8,000 8,000 Interest 60,000 25,000 30,000 114,180 230,382 239,296 246,971 IMP/Franchise Fees 150,000 160,000 165,000 169,950 175,049 180,300 185,709 13Village of Oal< Brook 2013-2017 Five-Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2012 2012 Description Budget Estimate 2013 2014 2015 2016 2017 Rental Income 127,710 138,685 132,960 137,375 141,940 146,665 151,545 Road Maintenance Reimbursement 13,500 13,500 13,500 13,905 14,322 14,752 15,194 Miscellaneous 30,000 30,000 80,000 80,000 80,000 80,000 80,000 Total Other Revenues 772,570 672,545 773,820 878,370 1,015,663 1,046,420 1,076,708 Transfer From Water Fund 342,725 342,725 408,700 420,961 433,590 446,598 459,995 Transfer From Other Funds 422,000 422,000 153,000 157,590 162,318 167,187 172,203 Total Interfund Revenues 764,725 764,725 561,700 578,551 595,908 613,785 632,198 Total Revenue 19,810,755 20,310,170 20,204,215 20,649,346 21,238,173 21,736,343 22,244,281 14Personnel Materials and Supplies Operations and Contractual Total Operating Budget Exceptional Charges Police Pension Contribution Firefighters' Pension Contribution Vehicle Replacement Charges Transfer to DuComm Building Reserve Transfer to Infrastructure Fund Transfer to Sports Core Fund Installment Contract Debt Service Total Exceptional Charges Capital Improvement Program (See Schedule) Total Budget 2012 Budget $12,251,805 567,160 3,791,905 $16,610,870 $832,275 971,465 159,540 0 I 16,605 0 294,575 $2,374,460 $821,425 $19,806,755 Village of Oak Brook 2013-2017 Five-Year Financial Plan GENERAL CORPORATE FUND Long-Range Operating Budget 20 I 2 Estimate 2013 $12,113,615 $12,224,395 562,525 563,045 3,537,210 3,868,900 $16,213,350 $I 6,656,340 $976,175 $1,087,855 1,001,000 1,015,975 159,540 182,995 0 102,525 116,605 120,000 183,900 0 294,575 294,575 $2,731,795 $2,803,925 $720,020 $701,300 $19,665,165 $20,161,565 2014 2015 2016 2017 $12,813,933 $13,431,971 $14,079,892 $14,759,144 577,121 591,549 606,338 621,496 3,834,900 3,932,437 4,032,496 4,135,145 $17,225,954 $17,955,958 $18,718,726 $19,515,785 $1,120,491 $1,154,105 $1,188,729 $1,224,390 $1,046,454 $1,077,848 $1,110,183 $1,143,489 538,449 547,757 559,333 565,951 0 0 0 0 125,000 130,000 135,000 140,000 0 0 0 0 293,838 291,688 293,738 289,800 $3,124,231 $3,201,398 $3,286,982 $3,363,630 $1,059,300 $712,500 $470,000 $434,000 $20,548, I 88 $20,792,498 $21,352,585 $21,947,310 15Legislative and General Management I computer Hardware And Software Engineering and Capital Projects Mu11icipal Complex· Undesignated Repairs Police Department Architect/Remodeling Interior/Exterior Signage VH!PD firing range bullet trap VH!PD booking ceiling and plumbing Village Hall carpet replacement Station 94 Patio Door Replacement Results fi·om Electric Survey Galvanized Plumbing Replacement Lower Level Washroom Improvements Firing Range Soundproofing Village Hall outside beautification Reception Area Remodeling Station 93/94 office area remodel due to Ducomm Station 94 Reseal apperatice floor FS No. 1 add humidifier Ductwork Cleaning Recoat North Walkway BGC Electric door strikes East Side Entrance Improvements(Sprinkler System) Parking Lot and Exterior Lights (DCEO Grant) Village of Oak Brook 2013-2017 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2012 2012 Budget Estimate 145,000 145,000 15,000 30,000 9,500 5,000 50,000 50,000 12,000 5,470 7,000 5,000 17,500 11,580 40,000 40,000 2013 2014 2015 2016 2017 180,000 225,000 250,000 275,000 3oo,ooo 1 15,000 15,000 15,000 15,000 15,000 100,000 100,000 85,000 25,000 6,000 67,000 80,000 15,000 15,000 15,000 15,000 15,000 25,000 7,500 7,500 7,500 20,000 10,000 I 0,000 . 10,000 30,000 10,000 10,000 10,000 10,000 10,000 17,500 5,000 15,000 15,000 20,000 20,000 20,000 16Fire S/11/ion #93: Painting outside and Bird proofing Rear drive replacement Cmpet replacement Bathrooms & Bunkroom Remodeling FS No.2 condenser unit HV AC System Replacement Apparatus Bay Heating Public Works Building: PW locker room floor and lunch room Roof Replacement & HV AC Screening PW Locker Room Renovation PW Recondition/Reseal Garage Floor Other Improvements: Heritage Center Library Refurbish Exterior Wood Paneling Sidewalk repair/replacement for public safety Electrical Outlets Outdoor Walkway Lights Install window shades Office Painting Replace chairs Carpeting Replacement Interior Lighting change out Police Evidence Management Barcode System Adjudication Software Zetron Alerting System Severe weather siren activation ModifY Fire Network VHF Build repeater network-VHF Police receiver Locks to close/secure village hall Village of Oak Brook 2013-2017 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2012 2012 Budget Estimate 15,000 50,000 17,845 I 0,000 I 0,000 75,000 94,350 60,000 60,000 75,000 75,000 50,000 12,000 7,500 5,000 5,000 13,220 12,620 23,000 0 25,000 25,000 20,000 20,000 15,000 15,000 20,000 20,000 15,000 15,000 2013 2014 2015 2016 2017 15,000 10,000 76,500 5,000 89,000 15,000 50,000 25,000 70,000 105,000 50,000 50,000 50,000 25,000 10,000 14,000 5,000 5,000 5,000 5,000 5,000 50,000 20,000 20,000 20,000 17Starcomm radio upgrades Speed display board Fire Starcomm radio upgrades Fire gear replacement Replace cardiac monitors Them1al Imaging Cameras Rep lace AED's Glide Scope Intubation Camera Mattress Replacement Cot Replacement Breathing Apparatus Replacement Total General Corporate Fund Village of Oak Brook 2013-2017 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2012 2012 Budget Estimate 18,200 17,650 10,005 10,005 11,000 11,000 7,500 7,500 821,425 720,020 2013 2014 2015 2016 2017 6,000 52,800 52,800 68,000 34,000 6,000 20,000 I 0,000 20,000 15,000 85,000 80,000 701,300 1,059,300 712,500 470,000 434,000 18DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 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 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. Late in 2006, 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 Board policy at the present time earmarks I% of the 3% Hotel/Motel Tax rate to funding activities of the Hotel, Convention and Visitors Committee; the remaining 2% ofthe 3% rate is dedicated to funding the Hotel Beautification District initiatives. OVERVIEW: Revenue: For 2013, revenues i!·om the 3% Hotel/Motel Tax are projected to be $830,000, which is an increase of6% compared to the 2012 Budget. For 2014 and thereafter, revenue is projected to increase 3% per year. Operations: For 2013, the projections reflect expenditures for marketing efforts of the Hotel, Convention and Visitors Committee of $165,000 as well as payment to the DuPage Convention and Visitors Bureau equal to 20% of the first I% of the Hotel Tax imposed. The Hotel/Motel program includes a Chamber of Commerce expenditure for $45,000, which is a reduction of $24,750 from 2012. Thereafter, expenditures increase approximately 3% per year. Exceptional Charges: The Plan reflects an annual transfer to the General Corporate Fund for administrative services of $39,000 from the Hotel, Convention and Visitors Committee. 19Capital Improvement Program VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN The 2013 Budget includes $664,000 for streetscape improvements in the Hotel Beautification District and $250,000 for pedestrian access projects. Thereafter, additional outlays of specific projects are budgeted for improvements and maintenance in the Hotel Beautification District. 20Unrestricted Cash Available, January I, 2012 $2,553,821 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Y car Cash Balance Estimated Available Funds Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year-End Village of Oak Brook 2013-2017 Five-Year Financial Plan HOTEL/MOTEL TAX FUND Summary 2012 Budget 2012 Estimate 2013 $783,780 $815,500 $1,356,000 309,750 299,750 275,335 394,000 394,000 39,000 80,030 121,750 1,041,665 2,553,821 2,553,821 2,653,571 2,633,851 2,675,571 3,695,236 2,633,851 2,675,571 3,695,236 290,000 22,000 974,000 $2,343,851 $2,653,571 $2,721,236 2014 2015 2016 2017 $2,520,342 $885,243 $911,843 $939,668 283,595 292, I 03 300,866 309,892 40,170 41,375 42,616 43,895 2,196,577 551,765 568,360 585,881 2,721,236 2,347,813 2,439,578 2,747,938 4,917,813 2,899,578 3,007,938 3,333,820 4,917,813 2,899,578 3,007,938 3,333,820 2,570,000 460,000 260,000 260,000 $2,347,813 $2,439,578 $2,747,938 $3,073,820 21Hotel/Motel Tax Grants Interest Total Revenue Village of Oak Brook 2013-2017 Five-Year Financial Plan HOTEL/MOTEL TAX FUND Revenue Projections 2012 Budget 2012 Estimate 2013 2014 $780,280 $812,000 $830,000 $854,900 $0 $0 522,000 1,660,000 3,500 3,500 4,000 5,442 $783,780 $815,500 $1,356,000 $2,520,342 2015 2016 2017 $880,547 $906,963 $934,172 $0 $0 $0 4,696 4,879 5,496 $885,243 $911,843 $939,668 222012 Budget Operations and Contractual $309,750 Total Operating Budget $309,750 Exceptional Charges Transfer to General Fund $39,000 Transfer to Infrastructure Fund $355,000 Total Exceptional Charges $394,000 Capital Improvement Program Hotel Beautification District Improvements 290,000 2% Portion Projects $0 Total Budget $993,750 Village of Oal< Brook 2013-2017 Five-Year Financial Plan HOTEL/MOTEL TAX FUND Long-Range Operating Budget 2012 Estimate 2013 2014 $299,750 $275,335 $283,595 $299,750 $275,335 $283,595 $39,000 $39,000 $40,170 $355,000 $0 $0 $394,000 $39,000 $40,170 22,000 724,000 2,460,000 $0 250,000 110,000 $715,750 $1,288,335 $2,893,765 2015 2016 2017 $292,103 $300,866 $309,892 $292,103 $300,866 $309,892 $41,375 $42,616 $43,895 $0 $0 $0 $41,375 $42,616 $43,895 330,000 260,000 260,000 130,000 $0 $0 $793,478 $603,482 $613,787 23DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN MOTOR FUEL TAX FUND The Motor Fuel Tax (MFT) Fw1d 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 2013 are projected at $200,000, which is a decrease of$55,500, or 22%. Exceptional Charges: There arc no MFT road projects budgeted for in 2013. There is a transfer budgeted to the Infrastructure Fund of $800,000 in 2014 and $500,000 in 2016 to supplement the road improvement program in those years. 24Unrestricted Cash Available, January 1, 2012 $446,161 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Y car Cash Balance Estimated Available Funds Intcrfund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year-End Village of Oak Brook 2013-2017 Five-Year Financial Plan MOTOR FUEL TAX FUND Summary 2012 Budget 2012 Estimate 2013 $256,500 $231,340 $201,000 0 0 0 0 0 0 256,500 231,340 201,000 446,161 446,161 677,501 702,661 677,50 l 878,501 0 0 0 0 0 0 702,661 677,501 878,501 0 0 0 $702,661 $677,501 $878,501 2014 2015 2016 2017 $207,757 $213,039 $221,042 $226,203 0 0 0 0 800,000 0 500,000 0 (592,243) 213,039 (278,958) 226,203 878,501 286,258 499,297 220,339 286,258 499,297 220,339 446,542 0 0 0 0 0 0 0 0 286,258 499,297 220,339 446,542 0 0 0 0 $286,258 $499,297 $220,339 $446,542 252012 Budget Motor Fuel Tax Allotments $255,500 Interest 1,000 Total Revenue $256,500 Village of Oal< Brook 2013-2017 Five-Year Financial Plan MOTOR FUEL TAX FUND Revenue Projections 2012 Estimate 2013 $230,340 $200,000 1,000 1,000 $231,340 $201,000 2014 2015 2016 2017 $206,000 $212,180 $218,545 $225,!02 1,757 859 2,496 1,102 $207,757 $213,039 $221,042 $226,203 262012 Budget Exceptional Charges Transfer to Infrastructure Fund $0 Total Exceptional Charges $0 Village of Oak Brook 2013-2017 Five-Year Financial Plan MOTORFUELTAXFUND Long-Range Operating Budget 20 12 Estimate 2013 $0 $0 $0 $0 2014 2015 2016 2017 $800,000 $0 $500,000 $0 $800,000 $0 $500,000 $0 27DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL I' LAN FOREIGN FIRE INSURANCE TAX FUND This fund is used to account for funds collected from imposition of the 2% tax on fire insurance policies written in the Village by insurance companies not incorporated in the State of Illinois. By law, expenditures fi·om the Fund must be for the maintenance, use and benefit of the Fire Department. Pmsuant to State law, expcnditmcs are directed by a Foreign Fire Insurance Tax Board elected by the members of the Fire Department. The accounting for this Fund is no longer under the jurisdiction of the Village and in May, 2003 the entire treasury function was turned over to the Treasurer of the Foreign Fire Insurance Tax Board. OVERVIEW: Revenue: Revenue is projected at $50,000 for 2013 and each year thereafter. Operations: Operating expenditmes are programmed for uses as determined by the Foreign Fire Insurance Tax Board. 28Unrestricted Cash Available, Januaty I, 2012 $206,563 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 A vai1ab1e Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year-End Village of Oak Bl'ook 2013-2017 Five-Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Summary 2012 Budget 2012 Estimate 2013 $50,400 $50,150 $50,400 39,525 26,525 39,525 0 0 0 10,875 23,625 10,875 206,563 206,563 188,188 217,438 230,188 199,063 217,438 230,188 199,063 50,000 42,000 15,000 $167,438 $188,188 $184,063 2014 2015 2016 2017 $50,400 $50,400 $50,400 $50,400 38,000 38,000 38,000 38,000 0 0 0 0 12,400 12,400 12,400 12,400 184,063 181,463 178,863 176,263 196,463 193,863 191,263 188,663 196,463 193,863 191,263 188,663 15,000 15,000 15,000 15,000 $181,463 $178,863 $176,263 $173,663 29Foreign Fire Insurance Tax Interest Total Revenue Village of Oal< Brool< 2013-2017 Five-Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Revenue Projections 2012 Budget 20 12 Estimate 2013 2014 $50,000 $50,000 $50,000 $50,000 400 150 400 400 $50,400 $50,150 $50,400 $50,400 2015 2016 2017 $50,000 $50,000 $50,000 400 400 400 $50,400 $50,400 $50,400 30Personnel Materials and Supplies Operation & Contractnal Total Operating Budget Capital Improvement Program Station Enhancements New Equipment Total Capital Improvement Program Total Budget Village of Oak Brook 2013-2017 Five-Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Long-Range Operating Budget 2012 Budget $2,000 31,750 5,775 $39,525 35,000 15,000 $50,000 $89,525 2012 Estimate $2,000 20,250 4,275 $26,525 30,000 12,000 $42,000 $68,525 2013 $2,000 31,750 5,775 $39,525 0 15,000 $15,000 $54,525 2014 $2,000 30,000 6,000 $38,000 0 15,000 $15,000 $53,000 2015 $2,000 30,000 6,000 $38,000 0 15,000 $15,000 $53,000 2016 $2,000 30,000 6,000 $38,000 0 15,000 $15,000 $53,000 2017 $2,000 30,000 6,000 $38,000 0 15,000 $15,000 $53,000 31DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN INFRASTRUCTURE FUND The Infrastructure Fund was established to separately account for revenues and expenditures related to ce11ain 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 I, 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 $5,015,000 for 2013, which represents slightly under .50% fi·om the I% municipal sales tax 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 2014 -2017 the revenues are estimated to grow approximately 3% per year (See GENERAL ASSUMPTIONS). Transfers fi·om the Motor Fuel Tax Fund are reflected in 2014 and 2016 in order to supplement the roadway maintenance program. Revenue from grants that have been secured are reilected in this budget. Transfers fi·om 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 ini1ation assumptions. Capital Improvements: The final payment of $1.7 million for the I-88/22m1 Street Bridge Project out of a total outlay for this project of $7.5 million is scheduled in 2013. 32Unrestricted Cash A vail able, January 1, 2012 $5,072,280 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 Oal{ llrool' 2013~2017 Five-Year Financial Plan IN~'RASTRUCTURE FUND Summary 2012 Budget 2012 Estimate $5,887,105 $5,565,985 2,533,950 2,340,200 216,010 216,010 3,137,145 3,009,775 5,072,280 5,072,280 8,209,425 8,082,055 0 0 8,209,425 8,082,055 5,891,165 4,191,165 $2,318,260 $3,890,890 2013 $5,746,200 2,396,955 205,295 3,143,950 3,890,890 7,034,840 0 7,034,840 3,272,000 $3,762,840 2014 2015 2016 2017 $6,150,150 $5,514,459 $6,177,148 $5,848,471 2,455,748 2,511,331 2,564,825 2,618,425 240,747 256,996 268,907 279,814 3,453,655 2,746,131 3,343,416 2,950,233 3,762,840 4,666,495 4,287,626 4,648,042 7,216,495 7,412,626 7,631,042 7,598,275 0 0 0 0 7,216,495 7,412,626 7,631,042 7,598,275 2,550,000 3,125,000 2,983,000 3,072,450 $4,666,495 $4,287,626 $4,648,042 $4,525,825 33Village of Oak Brook 2013-2017 Five-Veal' Financial Plan INFRASTRUCTURE FUND Revenue Projections 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Non-Home Rule Sales Tax $4,815,000 $5,045,000 $5,015,000 $5,165,450 $5,320,414 $5,480,026 $5,644,427 Grants 562,000 2,000 560,000 0 0 0 0 Interest 3,500 7,000 10,000 18,814 23,332 21,438 23,240 Transfer From Motor Fuel Tax Fund 0 0 0 800,000 0 500,000 0 Transfers From Other Funds 506,605 506,605 156,200 160,886 165,713 I 70,684 175,804 Miscellaneous 0 5,380 5,000 5,000 5,000 5,000 5,000 Total Revenue $5,887,105 $5,565,985 $5,746,200 $6,150,150 $5,514,459 $6,177,148 $5,848,471 34Personnel Materials and Supplies Operations and Contractual Total Operating Budget Exceptional Charges Vehicle Replacement Charges Transfer to Other Funds Total Exceptional Charges Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 2013-2017 Five-Year Financial Plan INFRASTRUCTURE FUND Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 $1,393,840 $1,387,280 $1,433,495 295,705 205,595 215,045 844,405 747,325 748,415 2,533,950 2,340,200 2,396,955 108,010 108,010 91,295 108,000 108,000 114,000 216,010 216,010 205,295 5,891,165 4,191,165 3,272,000 $8,641,125 $6,747,375 $5,874,250 2014 2015 2016 2017 $1,483,738 $1,535,886 $1,590,015 $1,646,205 220,421 225,932 231,580 237,369 767,125 786,304 805,961 826,110 2,558,071 2,643,506 2,728,537 2,815,510 123,327 136,054 144,336 151,506 117,420 120,943 124,571 128,308 240,747 256,996 268,907 279,814 2,550,000 3,125,000 2,983,000 3,072,450 $5,246,495 $5,893,328 $5,816,732 $5,970,689 35Village of Oak Brook 2013-2017 Five-Year Financial Plan INFRASTRUCTURE FUND Capital Improvement Program 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Roadway Improvements Street Resurfacing/Reconstruction $2,725,000 2,450,000 $1,272,000 2,500,000 3,075,000 2,933,000 3,022,450 I-88/22nd Street Bridge Project 1,501,165 1,501,165 1,700,000 22nd St./Jorie/McDonald's Signalization 100,000 22nd St./Parkview/MacAr1hur Shops at Oak Brook Place Signalization 350,000 615 Hunter-FEMA Buyout 250,000 250,000 22nd St. storm sewer upgrades due to water main replacement 250,000 22nd St./Joric ITEP (Illinois Transportatioo Enhancement Program) 675,000 Jorie Boulevard LAPP Project 140,000 Street Cracksealing 140,000 I 09,000 50,000 50,000 50,000 50,000 50,000 Safety Pathway Improvements Jorie/Ginger Creek Trail 50,000 Harger Road bike path 100,000 Total $5,891,165 $4,191,165 $3,272,000 $2,550,000 $3,125,000 $2,983,000 $3,072,450 36DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL I' LAN PROMENDADE SPECIAL TAX ALLOCATION FUND 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.l.F.) for ce1iain infi·astructure 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 I 00% 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 fi·om the incremental real estate tax revenue generated by the development are projected based on the amount received for 2012. For 2014 and thereafter, real estate tax revenues are projected based on increasing at 3%. Sales tax receipts from the General Fund and Infrastructure Fund are 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 that 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 (I) interest on past due interest, (2) current interest, and (3) repayment of principal. For 2013 it is projected that current interest payments will be made and payments of the principal amount. 37Unrestricted Cash Available, Januaty I, 2012 $210,122 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 Village of Oak Brook 2013-2017 Five-Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND SummHt)' 2012 Budget 2012 Estimate 2013 2014 $417,825 $439,105 $439,110 $451,799 5,265 5,265 5,380 5,380 410,000 421,040 429,990 437,060 2,560 12,800 3,740 9,359 210,122 210,122 222,922 226,662 212,682 222,922 226,662 236,021 212,682 222,922 226,662 236,021 0 0 0 0 $212,682 $222,922 $226,662 $236,021 2015 2016 2017 $465,365 $480,620 $495,205 5,380 5,380 5,380 445,100 451,095 458,120 14,885 24,145 31,705 236,021 250,906 275,051 250,906 275,051 306,756 250,906 275,051 306,756 0 0 0 $250,906 $275,051 $306,756 38Real Estate Taxes Sales Tax Transfer From Other Funds Interest Total Revenue Village of Oak Brook 2013-2017 Five-Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Revenue Projections 2012 Budget 2012 Estimate 2013 2014 $345,000 $362,000 $362,000 $372,860 72,800 77,035 77,035 77,805 25 70 75 I, 133 $417,825 $439,105 $439,110 $451,799 2015 2016 2017 $384,046 $395,567 $407,434 80,140 82,544 85,020 I, 180 2,509 2,751 $465,365 $480,620 $495,205 39Operations and Contractual Total Operating Budget Exceptional Charges Debt Service Interest Debt Service Principal Total Exceptional Charges Total Budget Village of Oak Brool< 2013-2017 Five-Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 2014 $5,265 $5,265 $5,380 $5,380 5,265 5,265 5,380 5,380 330,115 330,040 322,290 313,360 79,885 91,000 107,700 123,700 410,000 421,040 429,990 437,060 $ 415,265 $ 426,305 $ 435,370 $ 442,440 2015 2016 2017 $5,380 $5,380 $5,380 5,380 5,380 5,380 303,100 291,395 278,220 142,000 159,700 179,900 445,100 451,095 458,120 $ 450,480 $ 456,475 $ 463,500 40DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 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 be flat in order to mitigate fluctuations due to weather. In 2010, the Village Board conducted a comprehensive water rate study that resulted in increasing the water rates in order to support the operating and maintenance of the system as well as capital improvements. The 2013 Budget reflects an increase in the water rate in order to fund expected long-term capital outlays due to the aging of the system and the rate increase from the City of Chicago to the DuPage Water Commission. Operations: The cost to DuPage Water Commission increased by 20%, which is reflective in the 2013 budget. Capital Improvements: The capital improvement program reflects a focus on water main replacement for the next twenty years. 41Umestrictcd Cash Available, January 1, 2012 $3,164,151 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 Y car-End Village of Oak Brook 2013-2017 Five-Year Financial Plan WATER FUND Summary 2012 Budget 2012 Estimate 2013 $6,357,500 $7,165,000 $7,571,800 1,435,040 1,345,035 946,705 3,647,915 3,647,915 4,648,190 1,274,545 2,172,050 1,976,905 3,164,151 3,164,151 3,496,201 4,438,696 5,336,201 5,473,106 2,139,000 1,840,000 696,900 $2,299,696 $3,496,201 $4,776,206 2014 2015 2016 2017 $7,813,099 $8,041,612 $8,277,260 $8,510,865 956,327 986,314 1,017,165 1,048,897 5,512,258 6,441,787 7,482,923 7,845,812 1,344,514 613,511 (222,827) (383,844) 4,776,206 6,100,720 5,810,231 5,567,404 6,120,720 6,714,231 5,587,404 5,183,560 20,000 904,000 20,000 1,698,000 $6,100,720 $5,810,231 $5,567,404 $3,485,560 42Village of Oak Brook 2013-2017 Five-Year Financial Plan WATER FUND Revenue Projections 2012 Budget 20 12 Estimate 2013 2014 2015 2016 2017 Water Sales $6,200,000 $7,008,000 $7,415,000 $7,637,450 $7,866,574 $8,102,571 $8,345,648 Urnnetered Sales 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Connection Fees 25,000 20,000 20,000 20,000 20,000 20,000 20,000 Meter Fees 6,000 12,000 10,000 10,000 10,000 10,000 10,000 Special Services 27,000 27,000 27,000 27,810 28,644 29,504 30,389 Plan Review Fees 500 1,000 800 500 500 500 500 Inspection Fees 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Interest 12,000 5,000 12,000 30,339 28,894 27,686 17,329 Miscellaneous 60,000 65,000 60,000 60,000 60,000 60,000 60,000 Total Revenue $6,357,500 $7,165,000 $7,571,800 $7,813,099 $8,041,612 $8,277,260 $8,510,865 43Village of Oak Brook 2013-2017 Five-Year Financial Plan WATER FUND Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Personnel $753,280 $739,710 $761,060 $795,308 $831,097 $868,496 $907,578 Materials and Supplies 98,615 88,020 93,710 96,521 99,417 102,399 105,471 Operations and Contractual 558,145 502,305 91,335 94,075 96,897 99,804 102,798 Other Expenditures 25,000 15,000 600 600 600 600 600 Total Operating Budget $1,435,040 $1,345,035 $946,705 $985,904 $1,027,411 $1,070,700 $1,115,848 Exceptional Charges DWC Fixed and 0 & M Charges $3,242,750 $3,242,750 $4,243,330 $5,091,996 $6,008,555 $7,030,010 $7,381,510 Transfer To General Corporate Fund 342,725 342,725 347,400 357,822 368,557 379,613 391,002 Vehicle Replacement Charges 62,440 62,440 57,460 62,440 64,675 73,300 73,300 Total Exceptional Charges $3,647,915 $3,647,915 $4,648,190 $5,512,258 $6,441,787 $7,482,923 $7,845,812 Capital Improvement Program (See Schedule) $2,139,000 $1,840,000 $696,900 $20,000 $904,000 $20,000 $1,698,000 Total Budget $7,221,955 $6,832,950 $6,291,795 $6,488,585 $8,332,101 $8,520,088 $10,592,709 44Village of Oak Brook 2013-2017 Five-Year Financial Plan WATER FUND Capital Improvement Program 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Distribution Improvements: Undesignated/Miscellaneous 20,000 20,000 100,000 20,000 20,000 20,000 $20,000 22nd St. (Salt Creek to Clearwater) Water Main 169,000 169,000 194,000 West 22nd Street 200,000 0 200,000 Replacement of water meters and data collectors 62,900 Croydon/Sheffield/Chatham/Windsor Water Main 1,750,000 I ,651,000 Mockingbird/Concord/Devonshire Water Main $1,678,000 Kimberley Cir/Ct!Cambridge Water Main 884,000 Well Maintenance: Well #6 (31st & Meyers) 125,000 Storage and Pumps: 35th Street Station Pumping System 15,000 Total Capital Improvement Program $2,139,000 $1,840,000 $696,900 $20,000 $904,000 $20,000 $1,698,000 45DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 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 resomces, 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 I 00% supported by user fees. Based on projections contained in this document, revenues are expected to cover all costs of the Sports Core Fund ali costs in the Five-Year Financial Plan. 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. In addition, management is seeking ways to improve the management of the non-golf Sports Core recreation operations. Capital improvements completed over the past several years were planned with a view toward making more favorable operating results possible on an mmual basis. 46Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND-CONSOLIDATED Summary 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Cash Available, JanuaJy I, 2012 $82,063 Estimated Income $3,311,435 $3,114,120 $3,604,870 $3,516,941 $3,610,648 $3,706,490 $3,804,530 Less Estimated Operating Expenses Operating Budget 3,015,985 2,965,965 3,042,800 3,118,783 3,196,752 3,276,671 3,358,588 Exceptional Charges 129,000 130,340 64,060 63,140 62,220 0 0 Estimated Net Operating Income 166,450 17,815 498,010 335,018 351,676 429,820 445,942 Add Beginning of Year Cash Balance 82,063 82,063 (80,152) 101,858 251,376 458,053 788,872 Estimated Available Funds 248,513 99,878 417,858 436,876 603,053 887,872 1,234,814 Interfund Loan 0 0 0 0 0 0 0 Interfund Loan Repayment 0 0 0 0 0 0 0 Adjusted Cash Available 248,513 99,878 417,858 436,876 603,053 887,872 1,234,814 Less Capital Improvement Program 160,500 180,030 316,000 185,500 145,000 99,000 135,000 Estimated Cash Balance at Year-End $88,013 ($80,152) $101,858 $251,376 $458,053 $788,872 $1,099,814 47Sports Core Operations Golf Surcharge Total Village of Oak Brool< 2013-2017 Five-Year Financial Plan SPORTS CORE FUND-CONSOLIDATED Revenue Projections 2012 Budget 2012 Estimate 2013 2014 $3,190,935 120,500 $3,011,870 I 02,250 $3,484,370 120,500 $3,396,441 120,500 $3,311,435 $3,114,120 $3,604,870 $3,516,941 2015 $3,489,948 120,700 $3,610,648 2016 $3,585,590 120,900 $3,706,490 2017 $3,683,430 121,100 $3,804,530 48Personnel Materials and Supplies Operations and Contractual Total Exceptional Charges B&T Clubhouse Addition Debt Service Transfer to General Fund Total Capital Improvement Program Sports Core Operations Golf Surcharge Total Total Budget Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND-CONSOLIDATED Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 $1,504,360 $1,382,485 $1,515,800 654,930 648,165 669,900 856,695 935,315 857, I 00 $3,015,985 $2,965,965 $3,042,800 129,000 129,000 0 1,340 64,060 $129,000 $130,340 $64,060 160,500 180,030 316,000 0 0 0 $160,500 $180,030 $316,000 $3,305,485 $3,276,335 $3,422,860 2014 2015 2016 2017 $1,553,695 $1,592,537 $1,632,351 $1,673,160 686,648 703,814 721,409 739,444 878,440 900,401 922,91 I 945,984 $3,118,783 $3,196,752 $3,276,671 $3,358,588 0 0 0 0 63,140 62,220 0 0 $63,140 $62,220 $0 $0 185,500 145,000 99,000 135,000 0 0 0 0 $185,500 $145,000 $99,000 $135,000 $3,367,423 $3,403,972 $3,375,671 $3,493,588 49DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Ope.-ations 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 pmposes not assigned to the Golf Surcharge Account. OVERVIEW: Revenue: The total number of Golf Club members is projected at 181 throughout the planning period. For years 2013 -2017, 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 3% over the 2012 actual amounts. In 2014 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 operations consist of the Golf Cafe, Poolside Grill and the Bath and Tennis Clubhouse. The Poolside Grill was outsourced in 2009 and 2010. In 2011 the Poolside Grill was operated by the Sports Core staff. The Bath and Tennis Clubhouse outsourcing agreement was not renewed in 2011. A part-time venue salesperson was hired and developed a prefened caterer list to accommodate a wide variety of client needs and wants. Operations: The Bath and Te1mis Clubhouse will continue to market the preferred caterer (partner) concept to our wedding and special event clients. Additional seasonal statT has been added to expand customer service offerings for membership sales. Capital Improvements: The capital improvement program in the Sports Core Fund Operations presentation reflects an ongoing program of maintaining existing equipment and facilities. The 2013 budget includes $187,800 in capital improvements funded by a grant. 50Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND OPERATIONS Summary 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Unrestricted Cash Available, January I, 2012 $911 Estimated Income $3,190,935 $3,011,870 $3,484,370 $3,396,441 $3,489,948 $3,585,590 $3,683,430 Less Estimated Operating Expenses Operating Budget 3,015,985 2,965,965 3,042,800 3,118,783 3,196,752 3,276,671 3,358,588 Exceptional Charges 129,000 130,340 64,060 63,140 62,220 0 0 Estimated Net Operating Income 45,950 (84,435) 377,510 214,518 230,976 308,920 324,842 Add Beginning of Year Cash Balance 911 911 (263,554) (202,044) (173,026) (87,049) 122,870 Estimated Available Funds 46,861 (83,524) 113,956 12,474 57,951 221,870 447,712 Transfer From Golf Surcharge-Flood 0 0 0 0 0 0 0 Interfund Loan 0 0 0 0 0 0 0 Adjusted Cash Available 46,861 (83,524) 113,956 12,474 57,951 221,870 447,712 Less Capital Improvement Program 160,500 180,030 316,000 185,500 145,000 99,000 135,000 Estimated Unrestricted Cash Balance at Year-End (113,639) (263,554) (202,044) (173,026) (87,049) 122,870 312,712 51Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections 2012 Budget 20 12 Estimate 2013 2014 2015 2016 2017 Bath & Tennis Club: General Administration Miscellaneous $1,800 $1,200 $1,950 $1,950 $1,950 $1,950 $1,950 Swimming Grants 110,000 Membership Allocation 167,210 180,650 185,905 191,482 197,227 203,143 209,238 Swim Fees 38,640 34,760 35,840 36,915 38,023 39,163 40,338 Tennis Grants 41,000 Membership Allocation 86,855 97,290 100,005 103,005 106,095 109,278 112,557 Tennis Lessons and Programs 47,600 42,355 42,400 43,672 44,982 46,332 47,722 Beverage & Pro Shop Revenue 1,000 215 525 541 557 574 591 Miscellaneous 215 200 Polo Sponsorships, Memberships, & Admissions 26,250 17,625 42,890 44,177 45,502 46,867 48,273 Open Fields Field Rental 186,000 203,460 203,460 218,460 225,014 231,764 238,717 Sponsorships, Memberships, & Admissions 150,000 187,205 180,000 180,000 180,000 180,000 180,000 Total Bath & Tennis Club $705,355 $764,975 $944,175 $820,202 $839,350 $859,071 $879,385 52Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections Food & Beverage: Clubhouse Food & Beverage Grants $36,800 Catering 3,165 Rental Income 125,000 100,675 160,000 180,000 200,000 220,000 240,000 Miscellaneous 2,415 2,000 2,000 2,000 2,000 2,000 Poolside Grill Food Sales 45,000 46,250 46,250 47,638 49,067 50,539 52,055 Beverage/Liquor Sales 20,200 20,640 20,640 21,259 21,897 22,554 23,231 Golf Club Lounge Food Sales 128,000 103,000 128,000 131,840 135,795 139,869 144,065 Beverage/Liquor Sales 180,000 I 73,500 180,000 I 85,400 190,962 196,69 I 202,592 Candy/Cigarette Sales 7,360 7,800 7,800 8,034 8,275 8,523 8,779 Total Food & Beverage $505,560 $457,445 $581,490 $576,171 $607,996 $640,176 $672,721 Golf Club: Memberships $235,600 $188,090 $188,105 $193,748 $199,561 $205,547 $211,714 Golf Fees 909,020 847,000 960,000 988,800 1,018,464 1,049,018 1,080,488 Merchandise Sales 206,500 I 95,760 206,500 206,500 206,500 206,500 206,500 Driving Range Fees 269,000 239,000 256,000 256,000 256,000 256,000 256,000 Cart Rental Fees 357,000 313,950 346,000 352,920 359,978 367,178 374,522 Grants 3,525 Miscellaneous 2,900 2,125 2,100 2,100 2,100 2,100 2,100 Total Golf Club $1,980,020 $1,789,450 $1,958,705 $2,000,068 $2,042,603 $2,086,343 $2,131,324 Total Sports Core Operations $3,190,935 $3,011,870 $3,484,370 $3,396,441 $3,489,948 $3,585,590 $3,683,430 53Personnel Materials and Supplies Operations and Contractual Total Exceptional Charges B&T Clubhouse Addition Debt Service Transfer to General Fund Total Capital Improvement Program (See Schedule) Total Budget Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND OPERATIONS Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 $1,504,360 $1,382,485 $1,515,800 654,930 648,165 669,900 856,695 935,315 857,100 $3,015,985 $2,965,965 $3,042,800 $129,000 $129,000 $0 1,340 64,060 $129,000 $130,340 $64,060 $160,500 $180,030 $316,000 $3,305,485 $3,276,335 $3,422,860 2014 2015 2016 2017 $1,553,695 $1,592,537 $1,632,351 $1,673,160 686,648 703,814 721,409 739,444 878,440 900,401 922,911 945,984 $3,118,783 $3,196,752 $3,276,671 $3,358,588 $0 $0 $0 $0 63,140 62,220 0 0 $63,140 $62,220 $0 $0 $I 85,500 $145,000 $99,000 $135,000 $3,367,423 $3,403,972 $3,375,671 $3,493,588 54Village of Oak Br-ook Five Year Financial Plan Sports Core Fund Operations Capital Improvement Pro g.-am 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Bath & Tennis Club: Pool pump 6,000 4,000 Hot water tank replacement 20,000 Pool Painting 19,000 14,900 Locker Room Shower and Tile Replacement 20,000 9,300 Locker Room Improvements 40,000 Pool Awning Replacement 10,000 7,000 10,000 In·igation Project 18,000 15,365 Basement Stairway 40,000 Fencing for courts 1 & 2 15,000 Move pro shop to clubhouse 26,000 Drainage -open fields 15,000 Pro Shop Roof Replacement 7,500 Food And Beverage: Clubhouse Improvements 25,000 25,500 New air conditioner 80,000 Dishwasher Replacement 10,000 Clubhouse Furniture 30,000 Entrance sign 10,000 Exterior stain and soffit repair 45,000 Roof Scuppers 20,000 Saddle Room Floor 20,000 GolfC1ub: Tractors/Mowers 40,000 36,800 10,000 45,000 27,000 39,000 Exterior staining 7,500 16,370 Greens mower 9,000 18,000 18,000 10,000 Sprayer 50,000 Kitchen Dishwasher 15,000 Deep Tine Aeraifier 26,000 Carpeting Replacement 15,000 12,380 Clubhouse Furniture 60,000 Battery replacement on golf carts 50,000 HV AC Improvements 30,740 30,000 Lighting 7,675 Roof Replacement 65,000 Golf Car Ramp Replacement 20,000 Total Capital Improvement Program $160,500 $180,030 $316,000 $185,500 $145,000 $99,000 $135,000 55DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Golf SUJ·cha1·ge Account The Golf Surcharge Account is the repository for revenues received fi·om 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 il be necessary in the future. OVERVIEW: Revenue: Revenue is projected based on the $3.00 surcharge applied to 40,000 rounds per year. Capital Improvements: None planned at this time. 56Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND-GOLF SURCHARGE ACCOUNT Summary 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Restricted Cash Available, January I, 2012 $81,152 Estimated Income $120,500 $102,250 $120,500 $120,500 $120,700 $120,900 $121,100 Less Estimated Operating Expenses Operating Budget 0 0 0 0 0 0 0 Exceptional Che~rges 0 0 0 0 0 0 0 Estimated Net Operating Income 120,500 102,250 120,500 120,500 120,700 120,900 121,100 Add Beginning of Year Cash Balance 81' 152 81,152 183,402 303,902 424,402 545,102 666,002 Estimated Available Funds 201,652 183,402 303,902 424,402 545,102 666,002 787,102 Interfund Loan Repayment (General Fund) 0 0 0 0 0 0 0 Adjusted Cash Available 201,652 183,402 303,902 424,402 545,102 666,002 787,102 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Restricted Cash Balance at Year-End $201,652 $183,402 $303,902 $424,402 $545,102 $666,002 $787,102 57Village of Oak Brook 2013-2017 Five-Year Financial Plan SPORTS CORE FUND-GOLF SURCHARGE ACCOUNT Revenue Projections ______ _:_:Ac:;:cc:::o:.::u:::n:..t _______ 2::0::1:.::2:..::B:::u:::d:s;g=et 2012 Estimate 2013 2014 Golf Surcharge $120,000 $102,000 $120,000 $120,000 Interest 500 250 500 500 Total Revenue $120,500 $102,250 $120,500 $120,500 2015 2016 2017 $120,000 $120,000 $120,000 700 900 1,100 $120,700 $120,900 $121,100 58Capitallmprovement Program Total Total Budget Village of Oak Brool< 2013-2017 Five-Year Financial Plan SPORTS CORE FUND-GOLF SURCHARGE ACCOUNT Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 2014 0 $0 $0 $0 $0 $0 $0 $0 2015 2016 2017 $0 $0 $0 $0 $0 $0 59DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 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 fi·om charges to other funds, through the budgets of depmiments 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: Over the last four years, 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. On July I, 2008 the Village began offering an HMO alternative to non-union employees and by 2011 all the Unions agreed to the Village's terms per their respective collective bargained agreements (CBA's). For 2013, claims m·e projected based on various rates used to set equivalent premiums. For 2014 and beyond, a claims inflation factor of 6% per year has been used. Other expenses, including reinsurance costs, are also projected to increase 3% to 5% annually, beginning in July 2013. FUTURE CONSIDERATIONS: On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act. The impact of new healthcare reforms on employers is multi-faceted and complex. This will directly require employers to modify their practices and policies. Some of these changes may affect the Village of Oak Brook stmting in the year 2014. 60Unrestricted Cash Available, January 1, 2012 $1,081,782 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated A vail able Funds Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year-End Village of Oal{ Brook 2013-2017 Five-Year Financial Plan SELF-INSURANCE FUND Summary 2012 Budget 2012 Estimate 2013 $2,786,000 $2,588,060 $2,746,315 0 0 0 3,156,200 3,095,500 2,970,200 (370,200) (507,440) (223,885) 1,081,782 1,081,782 574,342 711,582 574,342 350,457 711,582 574,342 350,457 0 0 0 $711,582 $574,342 $350,457 2014 2015 2016 2017 $2,984,150 $3,244,715 $3,594,000 $3,979,550 0 0 0 0 3,167,835 3,380,454 3,607,560 3,849,466 (183,685) (135,739) (13,560) 130,084 350,457 166,772 31,033 17,473 166,772 31,033 17,473 147,557 166,772 31,033 17,473 147,557 0 0 0 0 $166,772 $31,033 $17,473 $147,557 612012 Budget Village Contributions $1,505,000 Participant Contributions 400,000 Park District Contributions 350,000 Retiree Contributions 525,000 Cobra Contributions 5,000 Interest 1,000 Total Revenue $2,786,000 Village of Oak Brook 2013-2017 Five-Year Financial Plan SELF-INSURANCE FUND Revenue Projections 2 0 12 Estimate 2013 2014 $1,390,000 $1,470,315 $1,580,590 335,000 400,000 440,000 360,000 370,000 406,560 500,000 500,000 550,000 2,340 5,000 5,000 720 1,000 2,000 $2,588,060 $2,746,315 $2,984,150 2015 2016 2017 $1,700,000 $1,870,000 $2,056,000 484,000 557,000 640,000 447,215 492,000 541,000 605,000 665,500 732,050 5,000 5,000 5,000 3,500 4,500 5,500 $3,244,715 $3,594,000 $3,979,550 622012 Budget Exceptional Charges Stop-Loss Premiums $224,000 HMO Premiums 255,000 Life Insurance Premiums 18,000 Health Claims 2,010,000 Dental Claims 200,000 Plan Administration Expense 174,200 Transfer to General Fund 275,000 Total Exceptional Charges $3,156,200 Village of Oak Brook 2013-2017 Five-Year Financial Plan SELF-INSURANCE FUND Long-Range Operating Budget 2012 Estimate 2013 2014 $191,000 $229,000 $244,250 450,000 455,000 486,850 22,000 25,000 25,750 1,820,500 1,900,000 2,033,000 172,000 175,000 185,500 165,000 186,200 192,485 275,000 0 0 $3,095,500 $2,970,200 $3,167,835 2015 2016 2017 $260,529 $277,905 $296,456 520,930 557,395 596,410 26,525 27,320 28,140 2,175,310 2,327,580 2,490,510 196,630 208,430 220,935 200,530 208,930 217,015 0 0 0 $3,380,454 $3,607,560 $3,849,466 63DESCIUPTION: VILLAGE OF OAK BROOK 2013-2017 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 vanous 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: None planned at this time. 64Unrestricted Cash Available, January I, 2012 $7,246 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 2013-2017 Five-Year Financial Plan GARAGE FUND Summary 2012 Budget 2012 Estimate 2013 $725,245 $727,310 $785,110 696,045 662,810 719,300 40,500 40,500 36,200 (II ,300) 24,000 29,610 7,246 7,246 2,246 (4,054) 31,246 31,856 0 0 0 0 0 0 (4,054) 31,246 31,856 29,000 29,000 0 ($33,054) $2,246 $31,856 2014 2015 2016 2017 $792,924 $800,847 $824,884 $853,762 738,461 758,136 778,340 799,086 37,000 44,820 45,620 46,420 17,463 (2, 109) 924 8,256 31,856 29,319 7,210 8,134 49,319 27,210 8,134 16,390 0 0 0 0 0 0 0 0 49,319 27,210 8,134 16,390 20,000 20,000 0 9,500 $29,319 $7,210 $8,134 $6,890 652012 Budget Vehicle 0 & M Charges $725,045 Interest 200 Miscellaneous Total Revenue $725,245 Village of Oal< Brook 2013-2017 Five-Year Financial Plan GARAGE FUND Revenue Projections 2012 Estimate 2013 2014 $725,045 $785,010 $792,860 25 100 64 2,240 $727,310 $785,110 $792,924 2015 2016 2017 $800,789 $824,812 $853,681 59 72 81 $800,847 $824,884 $853,762 662012 Budget Personnel $232,605 Materials and Supplies 253,850 Operations and Contractual 209,590 Total Operating Budget $696,045 Exceptional Charges Transfer to Infrastructure Fund $35,000 Vehicle Replacement Charge 5,500 Total Exceptional Charges $40,500 Capital Improvement Program Lap top and diagnostic software 9,000 Fuel island 20,000 Above ground hoist Floor coating Brake Lathe Total Capital improvement Program $29,000 Total Budget $765,545 Village of Oal< Brook 2013-2017 Five-Year Financial Plan GARAGE FUND Long-Range Operating Budget 2012 Estimate 2013 2014 $230,635 $235,695 $242,766 224,250 269,445 276,181 207,925 214,160 219,514 $662,810 $719,300 $738,461 $35,000 $36,200 $37,000 5,500 0 0 $40,500 $36,200 $37,000 9,000 20,000 20,000 $29,000 $0 $20,000 $732,310 $755,500 $795,461 2015 2016 2017 $250,049 $257,550 $265,277 283,086 290,163 297,417 225,002 230,627 236,393 $758,136 $778,340 $799,086 $37,800 $38,600 $39,400 7,020 7,020 7,020 $44,820 $45,620 $46,420 $20,000 $9,500 $20,000 $0 $9,500 $822,956 $823,960 $855,006 67DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINAN ClAL PLAN EQUIPMENT REPLACEMENT FUND 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. I% 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 2013, the General Corporate Fund is budgeted to partially contribute towards the funding of the equipment replacement needs. 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 histmy of the vehicle at that time. The deferral of the replacement of some vehicles from the schedule contained here is likely to occur. 68Unrestricted Cash Available, January I, 2012 $3,300,860 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 Oal{ Brook 2013-2017 Five-Year Financial Plan EQUIPMENT REPLACEMENT FUND Summary 2012 Budget 2012 Estimate 2013 $347,990 $386,990 $384,250 0 0 0 0 0 0 347,990 386,990 384,250 3,300,860 3,300,860 2,688,615 3,648,850 3,687,850 3,072,865 0 0 0 0 0 0 3,648,850 3,687,850 3,072,865 534,500 999,235 1,327,000 2014 $649,124 0 0 649,124 1,745,865 2,394,989 0 0 2,394,989 899,900 $3,114,350 $2,688,615 $1,745,865 $1,495,089 2015 2016 2017 $769,515 $777,726 $845,185 0 0 0 0 0 0 769,515 777,726 845,185 1,495,089 1,080,005 1,497,731 2,264,605 1,857,731 2,342,916 0 0 0 0 0 0 2,264,605 1,857,731 2,342,916 1,184,600 360,000 318,890 $1,080,005 $1,497,731 $2,024,026 69Vehicle Replacement Charges Interest Sales/Insurance Proceeds Total Revenue Village of Oak Brook 2013-2017 Five-Year Financial Plan EQUIPMENT REPLACEMENT FUND Revenue Projections 2012 Budget 20 I 2 Estimate 20I3 335,490 335,490 33 I,750 12,500 I I ,500 I2,500 0 40,000 40,000 $347,990 $386,990 $384,250 2014 20I5 2016 2017 630,395 752,040 756,926 820,208 8,729 7,475 I 0,800 I4,977 10,000 10,000 10,000 IO,OOO $649,124 $769,515 $777,726 $845,185 702012 Budget General Management Vehicles $0 Engineering Vehicles 0 Police Vehicles 225,000 Fire and EMS Vehicles 0 Code Enforcement Vehicles 0 Public Works Vehicles 151,800 Water Vehicles 157,700 Total $534,500 Village of Oak Brook 2013-2017 Five-Year Financial Plan EQUIPMENT REPLACEMENT FUND Capital Improvement Program 2012 Estimate 2013 2014 $13,710 0 $0 0 0 0 299,355 156,000 53,000 235,000 1,018,500 383,000 13,710 0 0 279,760 152,500 408,000 157,700 0 55,900 $999,235 $1,327,000 $899,900 2015 2016 2017 $0 $0 $0 0 0 0 180,000 228,000 0 750,000 0 270,890 0 0 0 78,600 108,000 36,000 176,000 24,000 12,000 $1,184,600 $360,000 $318,890 71DESCRIPTION: VILLAGE OF OAK BROOK 2013-2017 FIVE-YEAR FINANCIAL PLAN POLICE AND FIREFIGHTERS' PENSION FUNDS The Police and firefighters' Pension Fw1ds are separate financial entities mandated by Illinois law. The respective pension boards, in cooperation with the Village, strive to provide financially sound pension funds through application of proper actuarial practices and compliance with statutory requirements. The specific pension benefits are determined by the Illinois General Assembly. OVERVIEW: Revenue: Traditionally, local pension systems are property tax supported. Lacking legal authority to levy for this or any other purpose, Oak Brook has met its funding requirements via contributions fi·om the General Corporate Fund. Thus, the Police and Firefighters' Pension Funds have been supported primarily by the sales tax. The amonnts contributed are based on payroll and are made via percentage factors that are determined by actuarial studies and updated annually. Investment earnings are projected at the current actuarially assumed rate of 6.75% (Police) and 6.75% (Firefighters') over the 20 I 3-20 I 7 plmming period. Operations: Expense projections in each pension fund reflect projected increases in the number of retirees in each system and annual adjustments to pension benefits in accordance with applicable law. FUTURE CONSIDERATIONS: State tax cap legislation prohibits the Village from levying a property tax for pension purposes without voter approval. Therefore, the General Corporate Fund must continue to plan for contributions to the pension funds in amounts sufficient to fund future benefits in accordance with actuarial requirements and applicable law. 722012 Budget Restricted Cash Available, January I, 2012 $27,927,231 Estimated Income $2,544,460 Less Estimated Operating Expenses Operating Budget 115,915 Exceptional Charges 2,062,000 Estimated Net Operating Income 366,545 Add Beginning of Year Cash Balance 27,927,231 Estimated Available Funds 28,293,776 Adjusted Cash Available 28,293,776 Less Capital Improvement Program 0 Estimated Restricted Cash Balance at Year-End $28,293,776 Village of Oali Brooli 2013-2017 Five-Year Financial Plan POLICE PENSION FUND Summary 2012 Estimate 2013 $3,402,175 $3,562,855 120,770 127,830 1,951,000 2,045,000 1,330,405 1,390,025 27,927,231 29,257,636 29,257,636 30,647,661 29,257,636 30,647,661 0 0 $29,257,636 $30,647,661 2014 2015 2016 2017 $3,575,458 $3,707,426 $3,842,684 $3,981,288 132,066 135,383 138,785 142,273 2,158,000 2,258,000 2,361,000 2,468,000 1,285,392 1,314,043 1,342,899 1,371,015 30,647,661 31,933,053 33,247,096 34,589,995 31,933,053 33,247,096 34,589,995 35,961,009 31,933,053 33,247,096 34,589,995 35,961,009 0 0 0 0 $31,933,053 $33,247,096 $34,589,995 $35,961,009 732012 Budget Village Contributions $711,460 Employee Contributions 333,000 Interest 1,500,000 Total Revenue $2,544,460 Village of Oak Brook 2013-2017 Five-Year Financial Plan POLICE PENSION FUND Revenue Projections 2012 Estimate 2013 2014 $976,175 $1,087,855 $1,120,491 336,000 375,000 386,250 2,090,000 2,100,000 2,068,717 $3,402,175 $3,562,855 $3,575,458 2015 2016 2017 $1,154,106 $1,188,729 $1,224,391 397,839 409,776 422,072 2,155,481 2,244,179 2,334,825 $3,707,426 $3,842,684 $3,981,288 742012 Budget Personnel $9,150 Materials and Supplies 0 Operations and Contractual 106,765 Total Operating Budget $115,915 Exceptional Charges Pension Benefits $2,062,000 Pension Refunds 0 Total Exceptional Charges $2,062,000 Total Budget $2,177,915 Village of Oak Brook 2013-2017 Five-Year Financial Plan POLICE PENSION FUND Long-Range Operating Budget 20 I 2 Estimate 2013 2014 $7,275 $7,975 $8,214 0 0 1,000 113,495 119,855 122,851 $120,770 $127,830 $132,066 $1,951,000 $2,045,000 $2,153,000 0 0 5,000 $1,951,000 $2,045,000 $2,158,000 $2,071,770 $2,172,830 $2,290,066 2015 2016 2017 $8,461 $8,714 $8,976 1,000 1,000 1,000 125,923 129,071 132,297 $135,383 $138,785 $142,273 $2,253,000 $2,356,000 $2,463,000 5,000 5,000 5,000 $2,258,000 $2,361,000 $2,468,000 $2,393,383 $2,499,785 $2,610,273 75Village of Oak Brook 2013-2017 Five-Year Financial Plan FIREFIGHTERS' PENSION FUND Summary 2012 Budget 2012 Estimate 2013 2014 2015 2016 2017 Restricted Cash Available, January I, 2012 $22,166,462 Estimated Income $2,118,120 $3,101,000 $3,180,975 $2,941,888 $3,023,564 $3,075,972 $3,156,366 Less Estimated Operating Expenses Operating Budget 111,570 111,130 115,505 118,285 121,135 124,056 127,050 Exceptional Charges 1,997,500 2,085,000 2,100,000 2,200,000 2,730,000 2,383,000 2,481,000 Estimated Net Operating Income 9,050 904,870 965,470 623,603 172,429 568,916 548,316 Add Beginning of Year Cash Balance 22,166,462 22,166,462 23,071,332 24,036,802 24,660,405 24,832,834 25,401,750 Estimated Available Funds 22,175,512 23,071,332 24,036,802 24,660,405 24,832,834 25,401,750 25,950,067 Adjusted Cash Available 22,175,512 23,071,332 24,036,802 24,660,405 24,832,834 25,401,750 25,950,067 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Restricted Cash Balance at Year-End $22,175,512 $23,071,332 $24,036,802 $24,660,405 $24,832,834 $25,401,750 $25,950,067 76Village Contributions Employee Contributions Interest Total Revenue Village of Oak Brook 2013-2017 Five-Year Financial Plan FIREFIGHTERS' PENSION FUND Revenne Projections 2012 Budget 2012 Estimate 2013 2014 864,120 1,001,000 1,015,975 1,046,454 $254,000 $260,000 $265,000 $272,950 1,000,000 1,840,000 1,900,000 I ,622,484 $2,118,120 $3,101,000 $3,180,975 $2,941,888 2015 2016 2017 1,077,848 1,110,183 1,143,488 $281,139 $289,573 $298,260 1,664,577 1,676,216 1,714,618 $3,023,564 $3,075,972 $3,156,366 77Personnel Materials and Supplies Operations and Contractual Total Operating Budget Exceptional Charges Pension Benefits Pension Refunds Total Exceptional Charges Total Budget Village of Oak Brook 2013-2017 Five-Year Financial Plan FIREFIGHTERS' PENSION FUND Long-Range Operating Budget 2012 Budget 2012 Estimate 2013 2014 3,800 4,100 4,300 4,300 0 0 0 0 107,770 107,030 111,205 113,985 $111,570 $111,130 $115,505 $118,285 $1,997,500 $2,085,000 $2,100,000 $2,200,000 0 0 0 0 $1,997,500 $2,085,000 $2,100,000 $2,200,000 $2,109,070 $2,196,130 $2,215,505 $2,318,285 2015 2016 2017 4,300 4,300 4,300 0 0 0 116,835 119,756 122,750 $121,135 $124,056 $127,050 $2,730,000 $2,383,000 $2,481,000 0 0 0 $2,730,000 $2,383,000 $2,481,000 $2,851,135 $2,507,056 $2,608,050