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2014-2018 Five Year PlanVILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN TABLE OF CONTENTS SECTION PAGE Introduction 2 General Assumptions 2 Relationship to the Annual Budget 3 General Corporate Fund 5 Hotel/Motel Tax Fund 17 Motor Fuel Tax Fund 22 Foreign Fire Insurance Tax Fund 26 Infrastructure Fund 30 Promenade Special Tax Allocation Fund 35 Water Fund 39 Sports Core Fund 44 Self -Insurance Fund 58 Garage Fund 62 Equipment Replacement Fund 66 Police and Firefighters' Pension Funds 70 VILLAGE OF OAK BROOK 2014-2018 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 thirteen fiends 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 Govermnental 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, 2013 as reported in the audited financial statements as of December 31, 2012. 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 fi•inge benefits and training), interest rates, and the rate of growth in sales tax, the principal revenue source of the Village. The 2014-2018 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. VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN • Interest earnings on invested funds at rates ranging from less than .2% to 6.75%, depending upon the fund, the type and length of investment. • Sales tax receipts for 2014 are projected to increase 2% from the 2013 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 2014-2018, 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 2014, staff has prepared the 2014-2018 Five -Year Plan, 2014 Budget, and 2014 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 2014 Budget and 2014-2018 continues the Village Board directive that staff should prioritize items for inclusion in the 2014 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. 3 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN The actual 2014 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. 4 VILLAGE OF OAK BROOK 2014-2018 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 is presented whereas the expenditures exceed revenues and the cash reserves are utilized. General Fund Revenues have increased for the 2014 budget, by $1,121,985, or 5.5% more than the 2013 budgeted revenues. General Fund expenses have increased by $2.3 million, or 11.5% compared to 2013 budgeted expenses. The following highlights some of the major budget issues facing the Village for 2014: • With sales tax being one of the major sources of revenues the Village has which supports our core services including police and fire protection, we are starting to see it increase. The Village has seen some increases in other revenue sources this year, particularly in permit fees, which is why for 2014 there is an increase in certain revenues. • Effective January 1, 2011, the State of Illinois passed legislation that increased the individual income tax rate from 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 2013 (May 1 to April 30) was $90.12 per person, or 10.7% higher than in FY 2012. The IML is estimating for FY 2014 to be $95.40 per person, or 5.9% higher than in FY 2013. For 2013, income tax revenues are projected at $95.40 per person for calendar year January — December 2014 as a means of being conservative in this economic environment. 9 VILLAGE OF OAK BROOD 2014-2018 FIVE-YEAR FINANCIAL PLAN • 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 2014, the utility tax revenues are projected to be $4.95 million, an increase of .8%. • 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 2015 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 2014 and could change depending on the investment markets for the remainder of the year as well as possible changes in actuarial assumptions. In 2013, the Village updated the mortality table from UP 1984 to RP2000 in its actuarial valuations. • The General Fund Capital Improvement plan includes utilizing $665,090 cash reserves due to certain projects being prolonged in prior years due to budget constraints. • The General Fund includes utilizing $495,880 as a Sports Core subsidy in 2014 and $200,000 in years 2015 — 2018. The Village's 2014 — 2018 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. RouoniiP- 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 $11,835,000, which is an increase by 2% of 2013 estimated collections. The 2014 budgeted sales tax is predicated on the following factors: Oakbrook Center mall, which is one of the Village's largest tax payers, has had significant renovations which will be completed in late 2013. Bloomingdale's space is being re- divided in order for Tommy Bahama, Hugo Boss, Container Store and Fixtures Living to go in along with a couple of other smaller retailers. Apple will be taking a new space near the large fountain in close proximity to Macy's and will be approximately two times the size of the current space. The new/expanded Apple Store should be open in mid December 2013. There will be two new restaurants in Neiman Marcus, a newly renovated Nordstroms, and Tesla will be having cars delivered in 2014. 9 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN Receipts from the utility tax on electric, natural gas, and telecommunications service are expected to end the year at $4.9 million slightly under $10,000 compared to the 2013 budget. Utility tax collections for 2014 are budgeted to increase by $40,000 or .8% from the 2013 estimated amount. Inflationary increases of 3% have been assumed in subsequent years 2015 - 2018. State shared revenues in total are projected using information provided by the Illinois Municipal League and for 2014 are projected to increase by 9.2%. The State Income Tax is expecting to increase by 13.9% than in FY 2013, Use tax is expected to increase by 4.8% than in FY 2013 and Replacement Tax is expecting to remain flat. State shared revenues are projected to increase by 3% in years 2015 — 2018. The rates imposed for a number of license and fee categories, such as electrical permits, building/inspection fees and 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 $50,000 for 20I4. 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. 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 General Management program includes an increase in part time salaries for an intern of $15,000 that will assist the Village with the new residential marketing plan, Baldrige process improvement issues, and other special projects. This budget also includes $5,000 for Baldrige training and related expenditures. The Human Resources budget includes customer service program for employees, $I5,000, compensation survey for $5,000, and $10,000 increase for Police and Fire testing due to two promotional tests expected to be administered in 2014. A new program was created for Communication and Marketing totaling $85,900. This program includes a part time intern, consulting fees, initial first year advertising fees for the residential marketing program and other related expenses. Information Technology budget increased by $64,000 due to maintenance on computers and hardware. The Transportation program includes consulting expenses for the distributor grant program which will be offset by grant revenues received. The Economic Development prograrn includes the annual $70,000 Chamber of Commerce partnership grant. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Financial Services. Financial Management reflects an increase in actuarial fees of $11,900 due to possibly changing actuarial firms. Interfund Transfers includes a transfer to the Sports Core for $495,880 from the General Corporate Fund and $125,000 to Infrastructure for 7 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN administrative costs. The Sports Core transfer from the General Corporate Fund accounts for Golf drainage project, $150,000, Polo operating expenses of $115,475, Capital improvements for $177,500, and $52,905 for operating expenses. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Public Works. Significant changes for this department include Program 335 — Forestry program was increased $103,300, mainly due to Ash Borer removals and replacements and $20,000 for a consulting arborist pending grant receipt. There are no significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Library. Library Youth Services includes moving a part time position to full time in order to fulfill the needs of this department. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Police. The Police budget in total is projected to increase by $582,210 from 2013. This is mainly due to full year in DuComm fees, addition of auxiliary officers and inflationary factors such as salaries, pension costs, health, etc.. Auxiliary Program is newly created to providing additional police resources for special events and support to traditional police patrol activities. This budget totals $46,360 in salaries and related expenditures. Police Support Services increased by $131,300. Part time salaries increased due to an increase in records clerics hours to handle the non -emergency calls. Weekend closure of one police records window will save au estimated $8,000. This program also includes DuComm Dues for $402,505. Overall, police pension contributions are budgeted to increase $131,220 or 12% compared to the 2013 Budget. 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 in total is projected to increase by $481,095 or 7.8% from 2013. Program 700 — Fire, Rescue, and EMS Operations includes an increase in overtime of $44,750 fi•om the 2013 budget due to staffing needs in this department. This program also includes an increase in vehicle replacement charges of $153,595. Emergency Medical Services includes capital costs of $19,000 for cot replacement and AED's. Overall, Village fire pension contributions are projected to increase by $90,365, or 9.3% compared to the 2013 Budget. There are no other significant changes projected in the operating budgets of this department, beyond application of the inflation assumptions. Community Development. Code Enforcement includes upgrading a current part time position to full time building inspector for $38,320 effective April 1. This budget also includes a part time plan reviewer for $27,989 effective April 1 plus one-time costs for a work station and training at $5,200. There are no other significant changes in the operating budgets of this department, beyond application of the inflation assumptions. VILLAGE OF OAK BROOK 2014-2018 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 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 100% 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 2015-2018 and will continue to be a healthy fund. If the General Fund does not make contributions in 2015-2018, then the Equipment Replacement fund would have an estimated five years before it depletes all of its cash. • 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 (such as Forestry, Buildings & Grounds, etc.). Capital Improvements: 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 fire station 93, reception area remodeling, architect costs related to the police department, and 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 every effort to maintain a six month reserve fund for operating expenses. The six month reserve fund is expected to end 2014 at 6.9 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. 9 Unrestricted Cash Available, January 1, 2013 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 Months Operating $11,573,014 Village of Oak Brook 2014-2018 Five -Year Financial Plan GENERAL CORPORATE FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $20,204,215 $21,466,735 $21,326,200 $24,992,979 $22,410,857 $22,929,974 $23,459,377 16,656,340 16,453,760 17,662, 875 17,408,564 18,000,820 18,813,844 19,457, 070 2,803,925 3,458,255 3,789,165 3,599,091 3,679,767 3,827,007 3,917,827 743,950 1,554,720 (125,840) 3,985,325 730,270 289,123 84,480 11,573,014 11,573,014 12,519,034 11,366,914 11,381,439 11,439,209 11,288,332 12,316,964 13,127,734 12,393,194 15,352,239 12,111,709 11,728,332 11,372,812 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12,316,964 13,127,734 12,393,194 15,352,239 12,111,709 11,728,332 11,372,812 701,300 608,700 1,026,280 3,970,800 672,500 440,000 347,500 $11,615,664 $I2,519,034 $11,366,914 $11,381,439 $11,439,209 $11,288,332 $11,025,312 $9,244,485 $9,244,485 $9,859,895 $9,913,496 $10,256,919 $10,715,835 $11,086,770 10 Village of Oak Brook 2014-2018 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections Total Licenses and Permits 952,425 1,549,185 1,083,000 1,083,000 1,083,000 1,083,000 I,083,000 11 2013 2013 Description Budget Estimate 2014 2015 2016 2017 2018 General Sales Tax 10,900,000 11,600,000 11,835,000 12,190,050 12,555,752 12,932,424 13,320,397 State Income Tax 660,000 792,100 752,000 767,040 782,381 798,028 813,989 Replacement Tax 285,000 285,000 285,000 290,700 296,514 302,444 308,493 York Township Road and Bridge Tax 40,000 13,650 7,570 7,570 7,570 7,570 7,570 State Income Tax -Use Tax 126,000 128,000 132,000 133,900 137,917 142,055 146,316 Charitable Games Tax 1,000 500 500 500 500 500 500 Grants 111,420 44,620 105,150 10,000 10,000 10,000 10,000 Telecommunications Tax/Utility 4,910,000 4,900,000 4,950,000 5,009,600 5,059,700 5,110,300 5,161,400 Total Intergovernmental 17,033,420 17,763,870 18,067,220 18,409,360 18,850,333 19,303,321 19,768,665 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 29,000 35,000 35,000 35,000 35,000 35,000 35,000 Tobacco License 1,700 1,700 1,700 1,700 1,700 1,700 1,700 Raffle Licenses 325 400 400 400 400 400 400 Building Permits 335,000 800,000 450,000 450,000 450,000 450,000 450,000 Electrical Pen -nits 200,000 300,000 225,000 225,000 225,000 225,000 225,000 PIumbing Permits 22,000 50,000 30,000 30,000 30,000 30,000 30,000 Alarm Application Fee 55,000 29,185 28,000 28,000 28,000 28,000 28,000 Annual Alarm Permit Fee I50 150 150 150 150 150 150 Accessory Structure Permits 23,000 25,000 24,000 24,000 24,000 24,000 24,000 HVAC Permits 47,500 75,000 50,000 50,000 50,000 50,000 50,000 Demolition Permits 15,000 9,000 15,000 15,000 15,000 15,000 15,000 Application/Occupancy Fees 45,000 45,000 45,000 45,000 45,000 45,000 45,000 Miscellaneous Licenses & Permits 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Solicitation Permits 750 750 750 750 750 750 750 Total Licenses and Permits 952,425 1,549,185 1,083,000 1,083,000 1,083,000 1,083,000 I,083,000 11 Village of Oak Brook 2014-2018 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 12 2013 2013 Description Budget Estimate 2014 2015 2016 2017 2018 Elevator Inspections 95,000 95,000 95,000 97,850 100,786 103,809 106,923 Zoning/Subdivision Appl. Fees 11,000 11,000 11,000 11,000 11,000 11,000 11,000 Plan Review Fees 40,000 52,000 50,000 50,000 50,000 50,000 50,000 Building(Inspection Fees 165,000 185,000 175,000 175,000 175,000 175,000 175,000 Ambulance Fees 570,000 582,000 576,000 593,280 611,078 629,411 648,293 Toll Road Fire Service 40,000 35,100 36,000 37,080 38,192 39,338 40,518 Special Services -EMS 18,000 8,000 18,000 18,900 19,845 20,837 21,879 Special Services -Fire 4,000 4,000 4,000 4,200 4,410 4,631 4,862 False Alarm -Fire 11,000 8,250 8,750 8,750 8,750 8,750 8,750 Compliance 3,000 12,000 12,000 12,000 12,000 12,000 12,000 Fingerprinting 3,700 4,000 4;000 4,000 4,000 4,000 4,000 Special Services -Police 60,000 13,000 15,000 15,750 16,538 17,364 18,233 Field Services -Police 150 100 150 150 150 150 150 Misc. Support Services -Police 2,000 3,500 3,500 3,500 3,500 3,500 3,500 False Alarm -Police 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Eng. Plan Review & Inspection 10,000 12,000 10,000 10,000 10,000 10,000 10,000 Subdivision Review & Inspection 2,000 500 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 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Bad Debt (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) (200,000) Total Charges for Services 882,850 873,450 868,400 891,460 915,249 939,790 965,108 Court Fines 200,000 200,000 200,000 206,000 212,180 218,545 225,102 Village Fines 50,000 25,000 25,000 25,000 25,000 25,000 25,000 Training Reimbursement -Police 2,360 18,570 2,360 2,360 2,360 2,360 2,360 Administrative Towing Fees 80,000 80,000 80,000 84,000 88,200 92,610 97,241 Administrative Fines 12,000 5,000 5,000 5,250 5,513 5,788 6,078 Library Fines 8,000 8,000 8,000 8,000 8,000 8,000 8,000 Bond Proceeds 3,200,000 Interest 30,000 44,000 50,000 113,669 227,629 228,784 225,767 12 Description 2013 Budget IMF/Franchise Fees 165,000 Rental Income 132,960 Road Maintenance Reimbursement 13,500 Miscellaneous 80,000 Total Other Revenues 773,820 Transfer From Water Fund 408,700 Transfer From Other Funds 153,000 Total interfund Revenues 561,700 Total Revenue 20,204,215 Village of Oak Brook 2014-2018 Five -Year Financial Plan GENERAL CORPORATE FUND Revenue Projections 2013 Estimate 2014 2015 165,000 165,000 169,950 132,960 137,375 141,940 15,000 15,000 15,450 25,000 30,000 30,000 718,530 717,735 4,001,619 408,700 370,375 381,486 153,000 219,470 226,054 561,700 589,845 607,540 21,466,735 21,326,200 24,992,979 13 2016 20I7 2018 175,049 180,300 185,709 146,665 151,545 156,590 15,914 16,391 16,883 30,000 30,000 30,000 936,508 959,324 978,728 392,931 404,719 416,860 232,836 239,821 247,015 625,767 644,540 663,876 22,410,857 22,929,974 23,459,377 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Adjustment for Budget Goal Attainment Exceptional Charges Village of Oak Brook 2014-2018 .Five -Year Financial Plan GENERAL CORPORATE FUND Long -Range Operating Budget 2013 Budget 2013 Estimate $12,224,395 $12,129,710 563,045 548,280 3,868,900 3,775,770 $16,656,340 $16,453,760 2014 2015 2016 2017 2018 $13,048,430 $13,723,216 $14,433,192 $15,180,207 $15,966,209 545,605 559,245 573,226 587,557 602,246 4,068,840 4,042,343 4,143,390 4,246,964 4,353,126 $17,662,875 $18,324,804 $19,149,808 $20,014,728 $20,921,581 $17,662,875 $17,408,564 $18,000,820 $18,813,844 $19,457,070 Police Pension Contribution $1,087,855 $1,153,320 $1,219,075 $1,267,838 $1,318,552 $1,371,294 $1,426,145 Firefighters' Pension Contribution 1,015,975 1,066,840 1,106,340 $1,150,594 $1,196,617 $1,244,482 $1,294,261 Vehicle Replacement Charges 182,995 180,995 446,505 454,297 435,386 577,494 562,620 Transfer to DuComm Building Reserve 102,525 102,525 102,525 102,525 102,525 0 0 Transfer to infrastructure Fund 120,000 120,000 125,000 130,000 135,000 140,000 145,000 Transfer to Sports Core Fund 0 25,000 495,880 200,000 200,000 200,000 200,000 Transfer to Self Insurance Find 0 515,000 0 0 0 0 0 Installment Contract Debt Service 294,575 294,575 293,840 293,838 291,688 293,738 289,800 Total Exceptional Charges $2,803,925 $3,458,255 $3,789,165 $3,599,091 $3,679,767 $3,827,007 $3,917,827 Capital Improvement Program (See Schedule) $701,300 $608,700 $1,026,280 $3,970,800 $672,500 $440,000 $347,500 Total Budget $20,161,565 $20,520,715 $22,478,320 $24,978,455 $22,353,087 $23,080,851 $23,722,397 14 Village of Oak Brook 2014-2018 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2013 2013 Budget Estimate 20I4 2015 2016 2017 2018 Computer Hardware And Software 180,000 180,000 190,000 225,000 240,000 255,000 270,000 1 Municipal Complex: Undesignated Reairs/safeprojects 15,000 15,000 20,000 15,000 15,000 15,000 15,000 Police Department Architect/Remodelin 100,000 I,700,000 Electrical project 1,500,000 VH/PD firing range bullet trap 85,000 85,000 VH/PD booking ceiling and plumbing 25,000 Village Hall carpet replacement west wing 50,000 Station 94 Patio Door Replacement 6,000 Galvanized Plumbing Replacement 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Lower Level Washroom Improvements 25,000 Village Hall outside beautification 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Reception Area Remodeling 20,000 0 8,500 Station 93/94 office area remodel due to Ducomm 10,000 13,000 Station 94 Reseal apperatice floor 10,000 10,000 Station 94 humidifier 30,000 Ductwork Gleaning 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Recoat North Walkway 17,500 Electric door strikes 5,000 5,000 15,000 15,000 Sprinkler System {North & West side, Heritage Center and west side by monument 40,000 Station 94 shower improvements 20,000 Painting outside and Bird proofing 15,000 10,000 Station 93 Rear drive replacement 90,000 Carpet replacement 5,000 Bathrooms & Bunkrootn Remodeling 89,000 Fire Station #94 landscaping Station 93 condenser unit 15,000 5,000 Station 93 HVAC System Replacement 50,000 180,000 Station 93 Apparatus Bay Heating 25,000 Public Works Building: Recondition/Reseal Garage Floor 25,000 25,000 25,000 15 Village of Oak Brook 2014-2018 Five Year Financial Plan General Corporate Fund Capital Improvement Program 2013 2013 Budget Estimate 2014 2015 2016 2017 2018 Other Improvements: Heritage Center 105,000 125,000 222,000 50,000 70,000 70,000 30,000 Library Refurbish Exterior Wood Paneling 25,000 Library HVAC computer upgrade 20,000 Electrical Outlets 10,000 10,000 Outdoor Lights (GRANT 14,000) 20,000 Install window shades 14,000 Office Paintin 5,000 5,200 5,000 5,000 5,000 Replace chairs Meeting Room furniture 5,000 5,000 5,000 Carpeting Replacement 50,000 Interior Lighting change out 20,000 20,000 20,000 Police Police Patrol Rifle Replacement 15,300 Equipment re lacement - Su ort services 2,000 Starcomm radio upgrades 12,680 Speed display board 6,000 5,000 Fire Fire gear replacement 52,800 12,000 41,600 40,000 Replace cardiac monitors 68,000 100,000 Thermal Imaging Cameras 20,000 Replace AED's 6,000 4,000 4,000 15,000 Glide Scope Intubation Camera 10,000 Mattress Replacement 20,000 Cot Replacement 15,000 Wreathing Apparatus Replacement 85,000 80,000 Total General Corporate Fund 701,300 608,700 1,026,280 3,970,800 672,500 16 440,000 347,500 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN HOTEL/MOTEL TAX FUND DESCRIPTION: This fund is used to account for funds collected from imposition of the Village's Hotel/Motel Tax. State law requires that for non -home rule communities this revenue must be devoted to programs and activities designed to increase 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 tirne earmarks 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 Beautification District initiatives. OVERVIEW: Revenue: For 2014, revenues from the 3% Hotel/Motel Tax are projected to be $1,145,000, which is an increase of 38% compared to the 2013 Budget. This is mainly due to a newly remodeled hotel opening up for business in Spring 2014. For 2015 and thereafter, revenue is projected to increase 3% per year. Operations: For 2014, the projections- reflect expenditures for marketing efforts of the Hotel, Convention and Visitors Committee of $180,000 as well as payment to the DuPage Convention and Visitors Bureau equal to 20% of the first 1% of the Hotel Tax imposed. The Hotel/Motel program includes Chamber of Commerce expenditure for $45,000. Thereafter, expenditures increase approximately 3% per year. Exceptional Char The Plan reflects an annual transfer to the General Corporate Fund for administrative services of $40,170 from the Hotel, Convention and Visitors Committee. 17 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN Capital Improvement Program The 2014 Budget includes $335,000 for pedestrian access improvements, which is offset by $203,000 in reimbursements from private property owners. Entry signage at 22°d and York is budgeted for $85,000. Thereafter, additional outlays of specific projects are budgeted for improvements and maintenance in the Hotel Beautification District. 18 Unrestricted Cash Available, January 1, 2013 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 $2,699,121 Village of Oak Brook 2014-2018 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $1,356,000 $1,509,330 $1,355,500 $2,177,639 $1,220,907 $1,254,976 $1,294,251 275,335 285,335 311,635 320,985 330,615 340,535 39,000 39,000 40,170 41,380 42,620 43,900 1,041,665 1,184,995 1,003,695 1,815,274 847,672 870,541 2,699,121 2,699,121 2,909,116 3,429,811 2,058,875 1,267,858 3,740,786 3,884,116 3,912,811 5,245,085 2,906,548 2,138,399 3,740,786 3,884,116 3,912,811 5,245,085 2,906,548 2,138,399 974,000 975,000 483,000 3,186,210 1,638,690 290,550 $2,766,786 $2,909,116 $3,429,811 $2,058,875 $1,267,858 $1,847,849 19 350,755 45,220 898,276 1,847,849 2,746,125 2,746,125 292,515 $2,453,610 Hotel/Motel Tax Grants Interest Total Revenue Village of Oak Brook 2014-2018 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Revenge Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 $830,000 $980,000 $1,145,000 $I,179,350 $1,214,731 $1,251,172 522,000 522,000 203,000 988,000 0 0 4,000 7,330 7,500 10,289 6,177 3,804 2018 $1,288,708 0 5,544 $1,356,000 $1,509,330 $1,355,500 $2,177,639 $1,220,907 $1,254,976 $1,294,251 20 Village of Oak Brook 2014-2018 Five -Year Financial Plan HOTEL/MOTEL TAX FUND Long -Range Operating Budget 21 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Operations and Contractual $275,335 $285,335 $311,635 $320,985 $330,615 $340,535 $350,755 Total Operating Budget $275,335 $285,335 $311,635 $320,985 $330,615 $340,535 $350,755 Exceptional Charges Transfer to General Fund $39,000 $39,000 $40,170 $41,380 $42,620 $43,900 $45,220 Total Exceptional Charges $39,000 $39,000 $40,170 $41,380 $42,620 $43,900 $45,220 Capital Improvement Program Hotel Beautification and projects $974,000 $975,000 $483,000 $3,186,210 $1,638,690 $290,550 $292,515 Total Budget $1,288,335 $1,299,335 $834,805 $3,548,575 $2,011,925 $674,985 $688,490 21 VILLAGE OF OAK BROOK 201.4-201.8 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 2014 are projected at $200,000, which is projected to remain flat from 2013. Exceptional Charges: There is a transfer budgeted to the Infrastructure Fund of $700,000 in 2014 and $700,000 in 2017 to supplement the road improvement program in those years. 22 Unrestricted Cash Available, January 1, 2013 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Interrund Loan Interfund Loan Repayment Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2014-2018 Five -Year Financial Plan MOTOR FUEL TAX FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $677,377 $201,000 $202,I45 $202,200 $207,145 $213,947 $220,954 $226,073 0 0 0 0 0 0 0 0 0 700,000 0 0 700,000 0 201,000 202,145 (497,800) 207,145 213,947 (479,046) 226,073 677,377 677,377 879,522 381,722 588,867 802,814 323,768 878,377 879,522 381,722 588,867 802,814 323,768 549,841 0 0 0 0 0 0 0 0 0 0 0 0 0 0 878,377 879,522 381,722 588,867 802,814 323,768 549,841 0 0 0 0 0 0 0 $878,377 $879,522 $381,722 $588,867 $802,814 $323,768 $549,841 23 24 Village of Oak Brook 2014-2018 Five -Year Financial Plan MOTOR FUEL TAX FUND Revenue Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Moto► Fuel Tax Allotments $200,000 $200,000 $200,000 $206,000 $212,180 $218,545 $225,102 Interest 1,000 2,145 2,200 1,145 1,767 2,408 971 Total Revenue $201,000 $202,145 $202,200 $207,145 $213,947 $220,954 $226,073 24 Village of Oak Brook 2014-2018 Five -Year Financial Plan MOTOR FUEL TAX FUND Long -Range Operating Budget 2013 Budget 2013 Estimate Exceptional Charges Transfer to Infrastructure Fund $0 $0 Total Exceptional Charges $0 $0 25 2014 2015 2016 2017 2018 $700,000 $0 $0 $700,000 $0 $700,000 $0 $0 $700,000 $0 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN FOREIGN FIRE INSURANCE TAX FUND DESCRIPTION: 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 from the Fund must be for the maintenance, use and benefit of the Fire Department. Pursuant to State law, expenditures 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 2014 and each year thereafter. Operations: Operating expenditures are programmed for uses as determined by the Foreign Fire Insurance Tax Board. 26 Unrestricted Cash Available, January 1, 2013 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 $233,204 Village of Oak Brook 2014-2018 Five -Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $50,400 $50,100 $50,250 $52,278 $53,860 $55,474 $57,154 39,525 16,865 29,275 30,153 31,058 31,990 32,949 0 0 0 0 0 0 0 10,875 33,235 20,975 22,125 22,802 23,485 24,205 233,204 233,204 263,439 259,414 271,539 279,341 292,826 244,079 266,439 284,414 281,539 294,341 302,826 317,030 244,079 266,439 284,414 281,539 294,341 302,826 317,030 15,000 3,000 25,000 10,000 15,000 10,000 15,000 $229,079 $263,439 $259,414 $271,539 $279,341 $292,826 $302,030 27 Foreign Fire Insurance Tax Interest Total Revenue Village of Oak Brook 2414-2018 Five -Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Revenue Projections 2013 Budget 2013 Estimate 2014 2015 $50,000 $50,000 $50,000 $51,500 400 100 250 778 2016 2017 $53,045 815 $50,400 $50,100 $50,250 $52,278 $53,860 28 2018 $54,636 $56,275 838 878 $55,474 $57,154 Personnel Materials and Supplies Operation & Contractual Total Operating Budget Capital Improvement Program Station Enhancements New Equipment Total Capital Improvement Program Total Budget Village of Oak Brook 20142018 Five -Year Financial Plan FOREIGN FIRE INSURANCE TAX FUND Long -Range Operating Budget 2013 Budget 2013 Estimate 2014 2015 2016 $15,000 $2,000 $6,090 $2,000 $2,060 $2,122 31,750 7,000 21,500 22,145 22,809 5,775 3,775 5,775 5,948 6,127 $39,525 $16,865 $29,275 $30,153 $31,058 15,000 3,000 25,000 10,000 15,000 $15,000 $3,000 $25,000 $10,000 $15,000 $54,525 $19,865 $54,275 $40,153 $46,058 29 2017 2018 $2,185 $2,251 23,494 24,198 6,310 6,500 $31,990 $32,949 10,000 15,000 $10,000 $15,000 $41,990 $47,949 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN INFRASTRUCTURE FUND DESCRIPTION: The Infrastructure Fund was established to separately account for revenues and expenditures related to certain categories of capital projects including street resurfacing/reconstruction, safety pathways and drainage projects. Due to statutory restrictions on use, beginning in 2005 the Village's non -home rule sales tax of 0.25% (authorized by referendum in 2004) became the major source of funding for this Fund. In April, 2007 a second referendum was passed and the rate of tax increased to 0.50% effective January 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 $5,315,000 for 2014, which represents slightly under .50% from the 1% municipal sales tax amount. As is the case with the General Sales Tax, 20% of the incremental Non -Horne Rule Sales Taxes generated by the Promenade Development are required to be deposited in the Promenade Special Tax Allocation Fund. Thereafter, for 2015 — 2018 the revenues are estimated to grow approximately 3% per year (See GENERAL ASSUMPTIONS). Transfers from the Motor Fuel Tax Fund are reflected in 2014 and 2017 in order to supplement the roadway maintenance program. Revenue from grants that have been secured are reflected in this budget. Transfers from the General Corporate Fund are reflected in order to allocate costs (mostly administrative) tbat 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 2014 Road program includes St Paschals Drive/35th Street resurfacing and safety pathway. Commerce Drive will be resurfaced and new sidewalks installed. A number of roads throughout the Village including: Golf Drive, Coolidge Street, and 35th Street (East of Route IL -83) will also be resurfaced and bridge decks over Route I-88 and I-294 on York road will also be repaired. KE Unrestricted Cash Available, January 1, 2013 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-F,nd $3,376,337 Village of Oak Brook 2014-2018 Five -'Year Financial Plan INFRASTRUCTURE FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 NOV $5,746,200 $5,987,675 $6,666,275 $5,666,571 $5,833,503 $6,706,672 $6,760,076 2,396,955 2,570,790 2,654,265 2,695,099 2,755,060 2,812,999 2,871,111 205,295 205,295 260,365 269,587 286,702 299,503 311,328 3,143,950 3,211,590 3,751,645 2,701,885 2,791,742 3,594,171 3,577,637 3,376,337 3,376,337 3,347,927 3,995,572 3,532,457 3,301,199 3,822,919 6,520,287 6,587,927 7,099,572 6,697,457 6,324,199 6,895,369 7,400,556 0 0 0 0 0 0 0 6,520,287 6,587,927 7,099,572 6,697,457 6,324,199 6,895,369 7,400,556 3,272,000 3,240,000 3,104,000 3,165,000 3,023,000 3,072,450 3,621,240 $3,248,287 $3,347,927 $3,995,572 $3,532,457 $3,301,199 $3,822,919 $3,779,316 31 32 Village of Oak Brook 2014-2018 Five -Year Financial Plan INFRASTRUCTURE FUND Revenue Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Non -Home Rule Sales Tax $5,015,000 $5,210,000 $5,315,000 $5,474,450 $5,638,684 $5,807,844 $5,982,079 Grants 560,000 560,000 454,000 0 0 0 571,240 Interest 10,000 10,000 10,000 19,978 17,662 16,506 19,115 Transfer From Motor Fuel Tax Fund 0 0 700,000 0 0 700,000 0 Transfers From Other Funds 156,200 156,200 162,275 167,143 172,158 177,322 182,642 Miscellaneous 5,000 51,475 25,000 5,000 5,000 5,000 5,000 Total Revenue $5,746,200 $5,987,675 $6,666,275 $5,666,571 $5,833,503 $6,706,672 $6,760,076 32 Exceptional Charges Village of Oak Brook 2014-2018 Five -Year Financial Plan Vehicle Replacement Charges 91,295 91,295 118,365 INFRASTRUCTURE FUND 136,054 144,336 151,506 Transfer to Other Funds 114,000 Long -Range Operating Budget 142,000 146,260 150,648 155,167 159,822 2013 Budget 2013 L;stimate 2014 2015 2016 2017 2018 Personnel $1;433,495 $1,428,615 $1,506,700 $1,559,730 $1,614,777 $1,671,922 $1,731,251 Materials and Supplies 215,045 150,300 341,320 349,853 358,599 367,564 376,753 Operations and Contractual 748,415 991,875 791,245 811,026 831,302 852,084 873,386 Total Operating Budget 2,396,955 2,570,790 2,654,265 2,807,395 2,900,063 2,992,552 3,087,216 Exceptional Charges Vehicle Replacement Charges 91,295 91,295 118,365 123,327 136,054 144,336 151,506 Transfer to Other Funds 114,000 114,000 142,000 146,260 150,648 155,167 159,822 Total Exceptional Charges 205,295 205,295 260,365 269,587 286,702 299,503 311,328 Capital Improvement Program (See Schedule) 3,272,000 3,240,000 3,104,000 3,165,000 3,023,000 3,072,450 3,621,240 Total Budget $5,874,250 $6,016,085 $6,018,630 $6,129,686 $6,064,761 $6,184,952 $6,803,679 33 Roadway Improvements Street Resurfacing/Reconstruction Engineering Construction Way finding signage I-88/22nd Street Bridge Project 615 Hunter - FEMA Buyout Street Cracksealing Total 1,700,000 Village of Oak Brook 2014-2018 Five -Year Financial Plan 50,000 INFRASTRUCTURE FUND Capital Improvement Program 2013 Budget 2013 Estimate 2014 $1,272,000 1,240,000 $3,104,000 332,000 300,000 507,000 940,000 940,000 2,597,000 1,700,000 1,700,000 250,000 250,000 50,000 50,000 $3,272,000 $3,240,000 34 $3,104,000 2015 2016 2017 2018 3,075,000 2,933,000 3,022,450 3,571,240 461,250 439,950 454,000 450,000 2,613,750 2,493,050 2,568,450 3,121,240 40,000 40,000 50,000 50,000 50,000 50,000 3,165,000 3;023,000 $3,072,450 $3,621,240 VILLAGE OF OAK BROOK 2014-2018 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 2013. For 2015 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 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 2014 it is projected that current interest payments will be made and payments of the principal amount. 35 Village of Oak Brook 2014-2018 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Summary 2013 Budget 2013 Estimate Unrestricted Cash Available, January 1, 2013 $221,926 2014 2015 2016 2017 2018 Estimated Income $439,110 $465,350 $425,050 $437,186 $450,161 $464,499 $478,493 Less Estimated Operating Expenses Operating Budget 5,380 4,130 4,250 4,250 4,250 4,250 4,250 Exceptional Charges 429,990 439,925 456,775 454,975 452,375 448,975 444,775 Estimated Net Operating Income 3,740 21,295 (35,975) (22,039) (6,464) 11,274 29,468 Add Beginning of Year Cash Balance 221,926 221,926 243,221 207,246 185,207 178,743 190,017 Estimated Available Funds 225,666 243,221 207,246 185,207 178,743 190,017 219,485 Adjusted Cash Available 225,666 243,221 207,246 185,207 178,743 190,017 219,485 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Unrestricted Cash Balance at Year -End $225,666 $243,221 $207,246 $185,207 $178,743 $190,017 $219,485 36 Real Estate Taxes Sales Tax Transfer From Other Funds Interest Total Revenue Village of Oak Brook 2014-2018 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Revenue Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 $362,000 $345,000 $345,000 $355,350 $366,011 $376,991 77,035 120,300 80,000 80,800 83,224 85,721 75 50 50 1,036 926 1,787 $439,110 $465,350 $425,050 $437,186 $450,161 $464,499 37 2018 $388,301 88,292 1,900 $478,493 Operations and Contractual Total Operating Budget Exceptional Charges Debt Service hiterest Debt Service Principal Total Exceptional Charges Total Budget Village of Oak Brook 2014-2018 Five -Year Financial Plan PROMENADE SPECIAL TAX ALLOCATION (T.I.F.) FUND Long -Range Operating Budget 20I3 Budget 2013 Estimate 2014 $5,380 $4,130 $4,250 5,380 4,130 4,250 2015 2016 2017 2018 $4,250 $4,250 $4,250 $4,250 4,250 4,250 4,250 4,250 322,290 322,125 311,775 299,975 287,375 273,975 259,775 107,700 117,800 145,000 155,000 165,000 175,000 185,000 429,990 439,925 456,775 454,975 452,375 448,975 444,775 $ 435,370 $ 444,055 $ 461,025 $ 459,225 $ 456,625 $ 453,225 $ 449,025 38 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN WATER FUND DESCRIPTION: The water utility is one of two large enterprises operated by the Village. It serves approximately 5,200 customers, 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 2014 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 18%, which is reflective in the 2014 budget and 5% in 2015 — 2018. Capital Improvements: The capital improvement program reflects a focus on water main replacement for the next twenty years. 39 Unrestricted Cash Available, January 1, 2013 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End $2,886,549 Village of Oak Brook 2014-2018 Five -Year Financial Plan WATER FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $7,571,800 $6,966,290 $7,312,400 $8,092,268 $8,355,781 $8,628,974 $8,907,277 946,705 1,307,550 1,415,945 1,424,906 1,464,141 1,504,371 1,545,615 4,648,190 4,169,860 4,849,660 5,614,206 5,886,235 6,177,910 6,474,871 1,976,905 1,488,880 1,046,795 1,053,156 1,005,405 946,694 886,792 2,886,549 2,886,549 3,744,429 3,196,724 3,333,880 4,229,285 3,337,979 4,863,454 4,375,429 4,791,224 4,249,880 4,339,285 5,175,979 4,224,771 696,900 631,000 1,594,500 916,000 110,000 1,838,000 1,750,000 $4,166,554 $3,744,429 $3,196,724 $3,333,880 $4,229,285 $3,337,979 $2,474,771 Village of Oak Brook 2014-2018 Five -Year Financial Plan WATER FUND Revenue Projections 41 2018 $8,735,000 25,000 20,000 20,000 30,389 500 4,000 7,389 65,000 $8,907,277 2013 Budget 2013 Estimate 2014 2015 2016 2017 Water Sales $7,415,000 $6,775,000 $7,140,000 57,920,000 $8,180,000 $8,455,000 Unmetered Sales 25,000 25,000 25,000 25,000 25,000 25,000 Connection Fees 20,000 35,000 20,000 20,000 20,000 20,000 Meter Fees 10,000 21,000 20,000 20,000 20,000 20,000 Special Services 27,000 36,490 27,000 27,810 28,644 29,504 Plan Review Fees 800 I,800 1,400 500 500 500 Inspection Fees 2,000 4,000 4,000 4,000 4,000 4,000 Interest 12,000 8,000 10,000 9,958 12,636 9,971 Miscellaneous 60,000 60,000 65,000 65,000 65,000 65,000 Total Revenue $7,571,800 $6,966,290 $7,3I2,400 $8,092,268 $8,355,781 $8,628,974 41 2018 $8,735,000 25,000 20,000 20,000 30,389 500 4,000 7,389 65,000 $8,907,277 Village of Oak Brook 2014-2018 Five -Year Financial Plan WATER FUND Long -Range Operating Budget Capital Improvement Program (See Schedule) $696,900 $631,000 $1,594,500 $916,000 $110,000 $1,838,000 $1,750,000 Total Budget $6,291,795 $6,I08,410 $7,860,105 $7,955,112 $7,460,376 $9,520,280 $9,770,486 42 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Personnel $761,060 $761,035 $772,095 $806,839 $843,147 $881,089 $920,738 Materials and Supplies 93,710 91,880 96,040 98,921 1.01,889 104,946 108,094 Operations and Contractual 91,335 453,635 546,8I0 563,214 580,111 597,514 615,439 Other Expenditures 600 1,000 1,000 1,000 1,000 1,000 1,000 Total Operating Budget $946,705 $1,307,550 $1,415,945 $1,468,975 $1,525,147 $1,583,548 $I,644,271 Adjustment for Budget Goal Attainment $1,415,945 $1,424,906 $1,464,141 $1,504,371 $1,545,615 Exceptional Charges DWC Fixed and O & M Charges $4,243,330 $3,765,000 $4,412,000 $5,162,040 $5,420,142 $5,691,149 $5,975,707 Transfer To General Corporate Fund 347,400 347,400 378,375 389,726 401,418 413,461 425,864 Vehicle Replacement Charges 57,460 57,460 59,285 62,440 64,675 73,300 73,300 Total Exceptional Charges $4,648,190 $4,169,860 $4,849,660 $5,614,206 $5,886,235 $6,177,910 $6,474,871 Capital Improvement Program (See Schedule) $696,900 $631,000 $1,594,500 $916,000 $110,000 $1,838,000 $1,750,000 Total Budget $6,291,795 $6,I08,410 $7,860,105 $7,955,112 $7,460,376 $9,520,280 $9,770,486 42 Distribution Improvements: Undesignated/Miscellaneous 22nd St. (Salt Creek to Clearwater) Water Main West 22nd Street Replacement of water meters and data collectors Mockingbird/Concord/Devonshire Water Main Kimberley Cir/Ct/Cambridge Water Main York Woods Phase II Well Maintenance: Well 96 (31 st & Meyers) Storage and Pumps: 35th Street Station Pumping System Total Capital Improvement Program 125,000 15,000 $696,900 80,000 916,000 50,000 1,350,000 120,000 2016 110,000 2017 50,000 1,788,000 2018 1,750,000 $631,000 $1,594,500 $916,000 $110,000 $1,838,000 $1,750,000 43 Village of Dalt Brook 2014-2018 Five -Year Financial Plan WATER FUND Capital Improvement Program 2013 Budget 2013 Estimate 2014 2015 100,000 194,000 230,000 200,000 169,000 62,900 62,000 164,500 125,000 15,000 $696,900 80,000 916,000 50,000 1,350,000 120,000 2016 110,000 2017 50,000 1,788,000 2018 1,750,000 $631,000 $1,594,500 $916,000 $110,000 $1,838,000 $1,750,000 43 VILLAGE OF OAK BROOK 20142018 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND DESCRIPTION: The Oak Brook Sports Core is the other large enterprise operated by the Village. The Sports Core Fund supports the entire operation including uses of the Sports Core's fields and forest areas, the Oak Brook Golf Club, the Oak Brook Bath and Tennis Club (all available for use by the general public) and food and beverage services at the various Sports Core venues. It is considered an enterprise fund since the majority of its revenues are derived from user fees. In order to make clear the specific designation of certain resources, the Sports Core Fund is broken down into three segments: Sports Core Operations, the Golf Surcharge Account and the Capital Improvement Account. The Sports Core Fund - Consolidated presentation brings all of the parts together. OVERVIEW: For many years it has been the goal of the Village to operate the Sports Core on a self-sufficient basis; that is, it should be 100% supported by user fees. Based on projections contained in this document, revenues are expected to cover 90% of operating expenses. A subsidy from the General Corporate Fund ($345,800), Infrastructure Fund ($24,000), and Water Fund ($8,000) is included in this plan for capital needs, non - golf supervision, and to continue polo operations. The plan also includes a General Fund subsidy of $200,000 in years 2015 -- 2018. 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. Irl 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 annual basis. 44 Cash Available, January 1, 2013 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 $185,079 Village of Oak Broom 2014-2018 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $3,604,870 $3,202,780 $4,138,455 $3,755,123 $3,849,117 $3,945,254 $4,043,597 3,042,800 3,123,915 3,335,630 3,447,837 3,564,881 3,686,238 3,812,080 64,060 64,060 63,140 62,220 0 0 0 498,010 14,805 739,685 245,066 284,236 259,016 231,516 185,079 185,079 55,064 176,249 1,315 137,552 (3,433) 683,089 199,884 794,749 421,315 285,552 396,567 228,084 0 0 0 0 0 0 0 0 0 0 0 0 0 0 683,089 199,884 794,749 421,315 285,552 396,567 228,084 3I6,000 144,820 618,500 420,000 148,000 400,000 111,000 $367,089 $55,064 $176,249 $1,315 $137,552 ($3,433) $117,084 45 Village of Oak Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Revenue Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Sports Core Operations $3,484,370 $3,065,010 $3,867,955 $3,634,623 $3,728,417 $3,824,354 $3,922,497 Golf Surcharge 120,500 137,770 270,500 120,500 1.20,700 120,900 121,100 Total $3,604,870 $3,202,780 $4,138,455 $3,755,123 $3,849,117 $3,945,254 $4,043,597 Personnel Materials and Supplies Operations and Contractual Total Village of Oalt Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND -CONSOLIDATED Long -Range Operating Budget 2013 Budget 2013 Estimate 2014 $1,515,800 $1,416,820 $1,475,950 669,900 671,710 725,445 857,100 1,035,385 1,134,235 $3,042,800 $3,123,915 $3,335,630 2015 2016 2017 2018 $1,542,368 $1,611,774 $1,684,304 $1,760,098 743,581 762,171 781,225 800,756 1,161,888 1,190,936 1,220,709 1,251,227 $3,447,837 $3,564,881 $3,686,238 $3,8I2,080 Exceptional Charges Transfer to General Fund 64,060 64,060 63,140 62,220 0 0 0 Total $64,060 $64,060 $63,140 $62,220 $0 $0 $0 Capital Improvement Program Spoils Core Operations 316,000 69,820 468,500 195,000 148,000 150,000 111,000 Golf Surcharge 0 75,000 150,000 225,000 0 250,000 0 Total $316,000 $144,820 $618,500 $420,000 $148,000 $400,000 $111,000 Total Budget $3,422,860 $3,332,795 $4,017,270 $3,930,057 $3,712,881 $4,086,238 $3,923,080 47 VILLAGE OF OAK BROOK 20X4-2018 FIVE-YEAR FINANCIAL PLAN SPORTS CORE FUND Operations DESCRIPTION: The Sports Core Fund Operations presentation combines the operating projections for the Golf Club, Bath and Tennis Club, Sports Core Food and Beverage operations, and open fields operations. It also includes capital expenditures for equipment and similar purposes not assigned to the Golf Surcharge Account. OVERVIEW: Revenue: The total number of Golf Club members is projected at 145 throughout the planning period. For years 2014 -2018, 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 5% over the 2013 actual amounts. In 2015 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 preferred caterer list to accommodate a wide variety of client needs and wants. Operations: The Bath and Tennis Clubhouse will continue to market the preferred caterer (partner) concept to our wedding and special event clients. Additional seasonal staff 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 2014 budget includes $468,500 in capital improvements, of which, $187,800 is funded by a grant. 48 Unrestricted Cash Available, January 1, 2013 $46,494 Estimated Income Less Estimated Operating Expenses Operating Budget Exceptional Charges Estimated Net Operating Income Add Beginning of Year Cash Balance Estimated Available Funds Transfer From Golf Surcharge -Flood Interfund Loan Adjusted Cash Available Less Capital Improvement Program Estimated Unrestricted Cash Balance at Year -End Village of Oak Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $3,484,370 $3,065,010 $3,867,955 $3,634,623 $3,728,417 $3,824,354 $3,922,497 3,042,800 3,123,915 3,335,630 3,447,837 3,564,881 3,686,238 3,812,080 64,060 64,060 63,140 62,220 0 0 0 377,510 (122,965) 469,185 124,566 163,536 138,116 110,416 46,494 46,494 (146,291) (145,606) (216,040) (200,503) (212,388) 424,004 (76,471) 322,894 (21,040) (52,503) (62,388) (101,971) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 424,004 (76,471) 322,894 (21,040) (52,503) (62,388) (101,971) 316,000 69,820 468,500 195,000 148,000 150,000 111,000 108,004 (146,291) (145,606) (216,040) (200,503) (212,388) (212,971) 49 Village of Oalc Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Bath & Tennis Club: General Administration Miscellaneous $1,950 ($650) $950 $950 $950 $950 $950 Transfer From General Fund 345,880 200,000 200,000 200,000 200,000 Transfer From Infrastructure Fund 24,000 24,000 24,000 24,000 24,000 Transfer From Water Fund 8,000 8,000 8,000 8,000 8,000 Swimming Grants 110,000 110,000 Membership Allocation 185,905 176,320 185,665 191,235 196,972 202,881 208,968 Swim Fees 35,840 25,120 27,770 28,603 29,461 30,345 31,255 Tennis Grants 41,000 41,000 Membership Allocation 100,005 94,955 99,625 102,614 105,692 108,863 112,129 Tennis Lessons and Programs 42,400 47,975 48,800 50,264 51,772 53,325 54,925 Beverage & Pro Shop Revenue 525 45 525 541 557 574 591 Miscellaneous 200 315 200 Polo Sponsorships, Memberships, & Admissions 42,890 88,500 110,500 113,815 117,229 120,746 124,369 Open Fields Field Rental 203,460 182,460 203,460 218,460 225,014 231,764 238,717 Sponsorships, Memberships, & Admissions 180,000 181,750 180,000 180,000 180,000 180,000 180,000 Total Bath & Tennis Club $944,175 $804,790 $1,396,375 $1,128,782 $1,150,256 $1,172,376 $1,195,158 50 Village of Oak Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Revenue Projections Golf Club: Memberships 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Food & Beverage: 960,000 840,000 900,000 927,000 954,810 983,454 1,0I2,958 Clubhouse Rood & Beverage 206,500 174,300 201,300 201,300 201,300 201,300 201,300 Grants $36,800 250,500 36,800 258,500 258,500 258,500 258,500 Rental Income 160,000 147,000 160,000 180,000 200,000 220,000 240,000 Miscellaneous 2,000 4,330 2,000 2,000 2,000 2,000 2,000 Poolside Grill 2,100 2,350 2,250 2,250 2,250 2,250 2,250 Food Sales 46,250 42,000 46,250 47,638 49,067 50,539 52,055 Beverage/Liquor Sales 20,640 17,000 20,640 21,259 21,897 22,554 23,231 Golf Club Lounge Food Sales 128,000 104,000 128,000 131,840 135,795 139,869 144,065 Beverage/Liquor Sales 180,000 170,000 I80,000 185,400 190,962 196,691 202,592 Candy/Cigarette Sales 7,800 7,800 7,800 8,034 8,275 8,523 8,779 Total Food & Beverage $581,490 $492,130 $581,490 $576,171 $607,996 $640,176 $672,721 Golf Club: Memberships $188,105 $182,040 $182,040 $187,501 $193,126 $198,920 $204,888 Golf Fees 960,000 840,000 900,000 927,000 954,810 983,454 1,0I2,958 Merchandise Sales 206,500 174,300 201,300 201,300 201,300 201,300 201,300 Driving Range Fees 256,000 250,500 258,500 258,500 258,500 258,500 258,500 Cart Rental Fees 346,000 318,900 346,000 352,920 359,978 367,178 374,522 Grants Miscellaneous 2,100 2,350 2,250 2,250 2,250 2,250 2,250 Total Golf Club $1,958,705 $1,768,090 $1,890,090 $1,929,471 $1,969,965 $2,011,602 $2,054,417 Total Sports Core Operations $3,484,370 $3,065,010 $3,867,955 $3,634,423 $3,728,217 $3,824,154 $3,922,297 51 Personnel Materials and Supplies Operations and Contractual Total Village of Oak Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND OPERATIONS Long -Range Operating Budget 2013 Budget 2013 Estimate 2014 $1,515,800 $1,416,820 $1,475,950 669,900 671,710 725,445 857,100 1,035,385 1,134,235 $3,042,800 $3,123,915 $3,335,630 2015 2016 2017 2018 $1,542,368 $1,611,774 $1,684,304 $1,760,098 743,581 762,171 781,225 800,756 1,161,888 1,190,936 1,220,709 1,251,227 $3,447,837 $3,564,881 $3,686,238 $3,812,080 Exceptional Charges Transfer to General Fund 64,060 64,060 63,140 62,220 0 0 0 Total $64,060 $64,060 $63,140 $62,220 $0 $0 $0 Capital Improvement Program (See Schedule) $316,000 $69,820 $468,500 $195,000 $148,000 $150,000 $111,000 Total Budget $3,422,860 $3,257,795 $3,867,270 $3,705,057 $3,712,881 $3,836,238 $3,923,080 52 Village of Oak Brook Five Year Financial Plan Sports Core Fund Operations Capital Improvement Program 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Bath & Tennis Club: Pool Heater 20,000 I-Iot water tank replacement 20,000 Locker Room Improvements 40,000 60,000 Pool Awning Replacement 10,000 10,000 10,000 Pool Painting 20,000 20,000 10,000 20,000 Basement Stairway 40,000 40,000 New air conditioner 40,000 Fencing for courts I & 2 15,000 15,000 Move pro shop to clubhouse 26,000 26,000 5,000 5,000 Pro Shop Roof Replacement 7,500 Drainage - open fields 15,000 15,000 15,000 Pool deck furniture 10,000 10,000 Food And Beverage: Exterior stain and soffit repair 45,000 New air conditioner 80,000 40,000 Drainage - kitchen door 10,000 Tile replacement 15,000 Dishwasher Replacement 10,000 Roof Scuppers 20,000 Saddle Room Floor 20,000 Clubhouse Furniture 30,000 Entrance sign 10,000 Golf Club: Tractors/Mowcrs 10,000 10,000 65,000 60,000 53,000 50,000 Exterior staining 15,000 Lighting 15,000 Greens mower 9,000 9,000 Kitchen Dishwasher 15,000 15,000 Deep Tine Aeraifier 26,000 20,820 Carpeting Replacement 25,000 Clubhouse Furniture 20,000 Battery replacement on golf carts 50,000 HVAC Improvements 30,000 Dump Truck 20,000 Seeder 31,000 Golf Car Ramp Replacement 65,000 Fairway Cultivator 20,000 Total Capital Improvement Program $316,000 $69,820 $468,500 $195,000 $148,000 $150,000 $111,000 53 VILLAGE OF OAK BROOK 2014-2018 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 fixture. OVERVIEW: Revenue: Revenue is projected based on the $3.00 surcharge applied to 40,000 rounds per year. Capital Improvements: Drainage project funded by reserves from the General Corporate Fund in 2014 and the Golf Surcharge Fund in 2015 — 2018. 54 Restricted Cash Available, January 1, 2013 $138,585 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 Repayment (General Fund) Adjusted Cash Available Less Capital Improvement Program Estimated Restricted Cash Balance at Year -End Village of Oak Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $I20,500 $137,770 $270,500 $120,500 $120,700 $120,900 $121,100 0 0 0 0 0 0 0 0 0 0 0 0 0 0 120,500 137,770 270,500 120,500 120,700 120,900 121,100 138,585 138,585 201,355 321,855 217,355 338,055 208,955 259,085 276,355 471,855 442,355 338,055 458,955 330,055 0 0 0 0 0 0 0 259,085 276,355 471,855 442,355 338,055 458,955 330,055 0 75,000 150,000 225,000 0 250,000 0 $259,085 $201,355 $321,855 $217,355 $338,055 $208,955 $330,055 55 Village of Oak Brook 201.4-201.8 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Revenue Projections Account 2013 Budget 2013 Estimate Golf Surcharge $120,000 $112,000 Transfer from General Corporate Fund $25,000 Interest 500 770 Total Revenue $120,500 $137,770 56 2014 2015 2016 2017 2018 $120,000 $120,000 $120,000 $120,000 $120,000 $150,000 500 500 700 900 1,100 $270,500 $120,500 $120,700 $120,900 $121,100 Village of Oal(Brook 2014-2018 Five -Year Financial Plan SPORTS CORE FUND -GOLF SURCHARGE ACCOUNT Long -Range Operating Budget 2013 Budget 20I3 Estimate Capital Improvement Program Drainage study 25,000 Drainage project Other Improvements 50,000 Total $0 $75,000 Total Budget $0 $75,000 57 2014 2015 2016 2017 2018 50,000 100,000 225,000 250,000 $150,000 $225,000 $0 $250,000 $0 $150,000 $225,000 $0 $250,000 $0 VILLAGEOFOAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN SELF-INSURANCE FUND DESCRIPTION: The Self -Insurance Fund is an internal service fund used for funding the Village's employee welfare benefit programs, including the self- insured medical and dental plans and group life and accidental death insurance coverage. These programs also are made available to employees of the Oak Brook Park District, retired Village employees and separated employees and their dependents pursuant to COBRA regulations. OVERVIEW: Revenue: Revenue comes principally from charges to other funds, through the budgets of departments where plan participants are employed, charges to the Oak Brook Park District, charges to retirees, and charges to COBRA participants. The Plan also reflects increased participant contribution to the cost of health and dental insurance for all covered Village employees. Revenue from equivalent premiums is projected to increase at a rate sufficient to fund projected expenses. Operations: Over the last five 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 1, 2005 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 2014, claims are projected based on various rates used to set equivalent premiums. For 2015 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 2014. 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 the significant changes may affect the Village of Oak Brook starting in the year 2015. 58 Unrestricted Cash Available, January 1, 2013 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 $581,942 Village of Oak Brook 2014-2018 Five -Year Financial Plan SELF-INSURANCE FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $2,746,315 $3,177,125 $3,050,61.0 $3,307,887 $3,865,912 $4,309,511 $4,807,528 0 0 0 0 0 0 0 2,970,200 3,091,645 3,344,500 3,600,520 3,878,630 4,178,545 4,501,735 (223,885) 85,480 (293,890) (292,633) (12,718) 130,966 305,793 581,942 581,942 667,422 373,532 80,899 68,181 199,147 358,057 667,422 373,532 80,899 68,181 199,147 504,941 358,057 667,422 373,532 80,899 68,181 199,147 504,941 0 0 0 0 0 0 0 $358,057 $667,422 $373,532 $80,899 $68,181 $199,147 $504,941 Village of Oak Brook 2014-2018 Five -Year Financial Plan SELF-INSURANCE FUND Revenue Projections v 2013 Budget 2013 Estimate 2014 2015 20I6 2017 2018 Village Contributions $1,470,315 $1,460,000 $1,690,360 $1,817,140 $2,I80,500 $2,400,000 $2,640,000 Participant Contributions 400,000 312,000 425,000 467,500 561,000 673,200 807,840 Park, District Contributions 370,000 372,500 400,000 440,000 484,000 532,400 585,640 Retiree Contributions 500,000 517,500 525,000 577,500 635,250 698,775 768,650 Cobra Contributions 5,000 0 10,000 5,000 5,000 5,000 5,000 Interest 1,000 125 250 747 162 136 398 Transfer fi•om General Corporate Fund 515,000 Total Revenue $2,746,315 $3,177,125 $3,050,610 $3,307,887 $3,865,912 $4,309,511 $4,807,528 v Village of Oak Brook 2014-2418 Five -Year Financial Plan SELF-INSURANCE FUND Long -Range Operating Budget 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Exceptional Charges Stop -Loss Premiums $229,000 $195,000 $200,000 $214,800 $230,725 $247,860 $266,300 HMO Premiums 455,000 350,000 450,000 486,000 524,880 566,870 612,220 Vision Premiums 6,500 6,500 6,695 7,230 7,8I0 8,435 Life Insurance Premiums 25,000 22,500 25,500 25,750 26,525 27,320 28,140 Health Claims 1,900,000 2,186,645 2,300,000 2,484,000 2,682,720 2,897,340 3,129,125 Dental CIaims 175,000 160,000 175,000 188,125 202,235 217,400 233,705 Plan Administration Expense 186,200 171,000 187,500 195,150 204,315 213,945 223,810 Total Exceptional Charges $2,970,200 $3,09I,645 $3,344,500 $3,600,520 $3,878,630 $4,178,545 $4,501,735 61 VILLAGE OF OAIC BROOK 20I4-2018 FIVE-YEAR FINANCIAL PLAN GARAGE FUND DESCRIPTION: This fund is an internal service fund financed by charges to Village departments for maintenance of vehicle fleet equipment. Expenditures support the operation and maintenance of cars, trucks, most fire equipment, public works construction equipment and related items. OVERVIEW: Revenue: Revenues are calculated as charge -backs to various operating budget programs based on historical fuel and maintenance cost information. Operations; All costs associated with operation and maintenance of the Village's vehicle and equipment fleet are charged to this fund. Annual transfers to the General Corporate Fund for administrative services are also included. The projections include increases in the cost of fuel due to elevated oil prices as well as increases in the cost of repairs. Capital Expenditures: Laptop and diagnostic software for $6,400 is budgeted in 2014. 62 Unrestricted Cash Available, January 1, 2013 $25,504 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 Broolk 2014-2018 Five -Year Financial Plan GARAGE FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $785,110 $785,020 $810,090 $834,519 $859,564 $885,432 $912,057 719,300 728,695 751,510 771,522 792,072 813,173 834,840 36,200 36,200 37,275 38,075 38,875 39,675 40,475 29,610 20,125 21,305 24,921 28,618 32,584 36,742 25,504 25,504 35,629 50,534 55,455 84,073 107,157 55,I14 45,629 56,934 75,455 84,073 116,657 143,899 0 0 0 0 0 0 0 0 0 0 0 0 0 0 55,114 45,629 56,934 75,455 84,073 116,657 143,899 0 10,000 6,400 20,000 0 9,500 0 $55,114 $35,629 $50,534 $55,455 $84,073 $107,157 $143,899 63 Village of Oak Brook 2014-2018 Five -Year Financial Plan GARAGE FUND Revenue Projections 2013 Budget 2013 Estimate 2014 2015 20162017 2018 Vehicle O & M Charges $785,010 $785,010 $810,065 $834,367 $859,398 $885,180 $911,735 Interest 100 10 25 152 166 252 321 Miscellaneous Total Revenue $785,110 $785,020 $810,090 $834,519 $859,564 $885,432 $912,057 64 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 Lap top and diagnostic software Fuel Island Floor coating Brake Lathe Total Capital Improvement Program Total Budget Village of Oak Brook 2014-2018 Five -Year Financial Plan GARAGE FUND Long -Range Operating Budget 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 0 $235,695 $233,395 $244,915 $252,262 $259,830 $267,625 $275,654 269,445 276,830 285,335 292,468 299,780 307,275 314,956 214,160 218,470 221,260 226,792 232,461 238,273 244,230 $719,300 $728,695 $751,510 $771,522 $792,072 $813,173 $834,840 $36,200 $36,200 $37,275 $38,075 $38,875 $39,675 $40,475 0 0 0 0 0 $36,200 $36,200 $37,275 $38,075 $38,875 $39,675 $40,475 6,400 10,000 $20,000 $9,500 $0 $10,000 $6,400 $20,000 $0 $9,500 $0 $755,500 $774,895 $795,185 $829,597 $830,947 $862,348 $875,315 65 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN EQUIPMENT REPLACEMENT FUND DESCRIPTION: This fiend 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 2014, the General Corporate Fund is budgeted to fully 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 history of the vehicle at that time. The deferral of the replacement of some vehicles from the schedule contained here is likely to occur. Me Unrestricted Cash Available, January 1, 20I3 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 $2,731,432 Village of Oak Brook 2014-2018 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 $384,250 $381,750 $734,155 $736,467 $754,368 $919,648 $921,342 0 0 0 0 0 0 0 0 0 0 0 0 0 0 384,250 381,750 734,155 736,467 754,368 919,648 921,342 2,731,432 2,731,432 1,874,152 1,223,362 1,262,669 1,529,332 2,079,715 3,115,682 3,113,182 2,608,307 1,959,829 2,017,037 2,448,980 3,001,058 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,115,682 3,113,182 2,608,307 1,959,829 2,017,037 2,448,980 3,001,058 1,327,000 1,239,030 1,384,945 697,160 487,705 369,265 399,245 $1,788,682 $1,874,152 $1,223,362 $1,262,669 $1,529,332 $2,079,715 $2,601,813 67 Village of Oak Brook 2014-2018 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Revenue Projections 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Vehicle Replacement Charges 331,750 331,750 624,155 700,350 718,055 874,355 870,545 Interest 12,500 10,000 10,000 6,117 6,313 15,293 20,797 Sales/Insurance Proceeds 40,000 40,000 100,000 30,000 30,000 30,000 30,000 Total Revenue $384,250 $381,750 $734,155 $736,467 $754,368 $919,648 $921,342 General Management Vehicles Engineering Vehicles Police Vehicles Fire and EMS Vehicles Code Enforcement Vehicles Public Works Vehicles Water Vehicles Total Village of Oak Brook 2014-2018 Five -Year Financial Plan EQUIPMENT REPLACEMENT FUND Capital Improvement Program 2013 Budget 2013 Estimate 2014 2015 $30,000 2016 2017 156,000 122,355 155,120 162,560 222,705 73,265 1,018,500 888,000 759,500 250,000 133,000 260,000 152,500 I68,167 408,000 78,600 108,000 36,000 60,508 62,325 176,000 24,000 $1,327,000 $1,239,030 $1,384,945 $697,160 $487,705 $369,265 2018 22,000 125,795 10,890 15,000 160,770 64,790 $399,245 VILLAGE OF OAK BROOK 2014-2018 FIVE-YEAR FINANCIAL PLAN POLICE AND FIREFIGHTERS' PENSION FUNDS DESCRIPTION: The Police and Firefighters' Pension Funds 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: RPVPf911P' 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 from the General Corporate Fund. Thus, the Police and Firefighters' Pension Funds have been supported primarily by the sales tax. The amounts 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 assurned rate of 6.75% (Police) and 6.75% (Firefighters') over the 2014-2018 planning 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 fixture benefits in accordance with actuarial requirements and applicable law. 70 Village of Onk Brook 2014-2018 Five -Year Financial Plan POLICE PENSION FUND Summnry 71 2013 Budget 2013 Estimate 2014 2015 2016 2017 20I8 Restricted Cash Available, January 1, 2013 $29,814,630 Estimated Income $3,562,855 $3,209,035 $3,684,060 $3,814,542 $3,960,437 $4,110,336 $4,264,547 Less Estimated Operating Expenses Operating Budget 127,830 115,145 I29,025 133,291 136,639 140,073 143,593 Exceptional Charges 2,045,000 1,993,000 2,130,400 2,245,000 2,350,000 2,455,000 2,565,000 Estimated Net Operating Income 1,390,025 1,100,890 1,424,635 1,436,251 1,473,798 1,515,263 1,555,954 Add Beginning of Year Cash Balance 29,814,630 29,814,630 30,915,520 32,340,155 33,776,406 35,250,204 36,765,468 Estimated Available Funds 31,204,655 30,915,520 32,340,155 33,776,406 35,250,204 36,765,468 38,321,422 Adjusted Cash Available 31,204,655 30,915,520 32,340,155 33,776,406 35,250,204 36,765,468 38,321,422 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Restricted Cash Balance at Year -End $31,204,655 $30,915,520 $32,340,155 $33,776,406 $35,250,204 $36,765,468 $38,321,422 71 Village of Oak Brook 2014-2018 Five -Year Financial Plan POLICE PENSION FUND Revenue Projections 72 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Village Contributions $1,087,855 $I,153,320 $1,219,075 $1,255,647 $1,293,316 $1,332,115 51,372,078 Employee Contributions 375,000 345,715 364,985 375,935 387,214 398,832 410,800 Interest 2,100,000 1,710,000 2,100,000 2,182,960 2,279,907 2,379,389 2,491,669 Total Revenue $3,562,855 $3,209,035 $3,684,060 $3,814,542 $3,960,437 $4,110,336 $4,264,547 72 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Village of Oak Brook 2014-2018 Five -Year Financial Plan POLICE PENSION FUND Long -Range Operating Budget 2013 Budget 2013 Estimate $7,975 $2,575 0 0 119,855 112,570 $127,830 $115,145 2015 2016 2017 $8,000 $8,240 $8,487 $8,742 0 1,000 1,000 1,000 121,025 I24,051 127,152 130,331 $129,025 $133,291 $136,639 $140,073 2018 $9,004 1,000 133,589 $143,593 Exceptional Charges Pension Benefits $2,045,000 $1,993,000 $2,130,400 $2,240,000 $2,345,000 $2,450,000 $2,560,000 Pension Refunds 0 0 0 5,000 5,000 5,000 5,000 Total Exceptional Charges $2,045,000 $1,993,000 $2,130,400 $2,245,000 $2,350,000 $2,455,000 $2,565,000 Total Budget $2,172,830 $2,108,145 $2,259,425 $2,378,291 $2,486,639 $2,595,073 $2,708,593 73 Village of Oak Broom 2014-2018 Five -Year Financial Plan FIREFIGHTERS' PENSION FUND Summary 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Restricted Cash Available, January 1, 2013 $23,364,733 Estimated Income $3,180,975 $2,966,110 $3,075,245 $3,098,705 $3,190,122 $3,283,555 $3,377,656 Less Estimated Operating Expenses Operating Budget 115,505 112,095 118,575 121,432 124,360 127,362 130,438 Exceptional Charges 2,100,000 2,108,415 2,145,480 2,252,500 2,330,000 2,430,000 2,530,000 Estimated Net Operating Income 965,470 745,600 811,190 724,773 735,762 726,193 717,218 Add Beginning of Year Cash Balance 23,364,733 23,364,733 24,110,333 24,921,523 25,646,296 26,382,058 27,108,251 Estimated Available Funds 24,330,203 24,110,333 24,921,523 25,646,296 26,382,058 27,108,251 27,825,469 Adjusted Cash Available 24,330,203 24,110,333 24,921,523 25,646,296 26,382,058 27,108,251 27,825,469 Less Capital Improvement Program 0 0 0 0 0 0 0 Estimated Restricted Cash Balance at Year -End $24,330,203 $24,110,333 $24,921,523 $25,646,296 $26,382,058 $27,108,251 $27,825,469 74 Village of Oat{ Brook 2014-2018 Five-Year Finaucial Plan FIRE,EFIGHTERS' PENSION FUND Revenue Projections 75 2013 Budget 2013 Estimate 2014 2015 2016 2017 2018 Village Contributions 1,015,975 1,106,340 1,106,340 1,139,530 1,173,716 1,208,927 1,245,195 Employee Contributions $265,000 $259,770 $268,905 $276,972 $285,281 $293,839 $302,654 Interest 1,900,000 1,600,000 1,700,000 1,682,203 1,731,125 1,780,789 1,829,807 Total Revenue $3,180,975 $2,966,110 $3,075,245 $3,098,705 $3,190,122 $3,283,555 $3,377,656 75 Personnel Materials and Supplies Operations and Contractual Total Operating Budget Village of Oak Brook 2014-2018 Five -Year Financial Plan FIREFIGHTERS' PENSION FUND Long -Range Operating Budget 2013 Budget 2013 Estimate 2014 4,300 4,075 4,300 0 0 0 11.1,20 5 108,020 114,275 $115,505 $112,095 $118,575 2015 2016 4,300 4,300 0 0 117,132 120,060 $121,432 $124,360 2017 2018 4,300 4,300 0 0 123,062 126,138 $127,362 $130,438 Exceptional Charges Pension Benefits $2,100,000 $2,108,415 $2,145,480 $2,252,500 $2,330,000 $2,430,000 $2,530,000 Pension Refunds 0 0 0 0 0 0 0 Total Exceptional Charges $2,100,000 $2,108,415 $2,145,480 $2,252,500 $2,330,000 $2,430,000 $2,530,000 Total Budget $2,215,505 $2,220,510 $2,264,055 $2,373,932 $2,454,360 $2,557,362 $2,660,438 76