2016 Citizen PAFRVillage of Oak Brook, Illinois
Popular Annual Financial Report
For the Year Ended December 31, 2016
The Village of Oak Brook has been, and continues to be, one of the preeminent business centers in the
Chicago metropolitan area. Several Fortune 500 companies have facilities in the Village, including the
corporate headquarters of McDonald’s Corporation. As a retail center, Oak Brook offers upscale shopping,
fine restaurants, and Oak Brook Center—one of the leading outdoor shopping centers in the United States.
These factors, as well as the performance of the Illinois economy, have enabled the Village to operate without
a real estate tax due to the sales taxes generated from retail business activities. With sales taxes being the
largest source of revenue, the local and national economy has a significant effect on the amount of revenue
the Village receives.
Oak Brook has more than 7,800 residents across approximately 2,850 households.
The Village provides many key services, including police and fire protection, water delivery, street maintenance,
public improvements, public library, and recreation.
The Village is composed of residential subdivisions, the Oakbrook Center Mall, office and retail locations,
restaurants, and numerous corporate headquarters.
Principal employers in Oak Brook include Oakbrook Center Mall, McDonald’s Corporation, Advocate Healthcare,
Ace Hardware, Hub Group, and Inland Real Estate Group of Companies.
The Village of Oak Brook features 269 acres of open space, polo fields, golf courses, soccer fields, swimming and
tennis facilities, and other recreational opportunities not commonly found in a village of this size.
Only 15 miles west of downtown Chicago, Oak Brook is conveniently located along Interstates 88 and 294.
Oak Brook feeds into five outstanding elementary school districts: Butler District 53; Downers Grove District 58;
Elmhurst District 205; Hinsdale District 181; and Salt Creek District 48.
One aspect of life in Oak Brook that we are proud of is the wide range of entertainment and recreational
opportunities available in our community. Whether you’re participating in a Bath and Tennis Club activity,
watching a play at the Mayslake Peabody Estate, attending a Polo match, or jogging down the Oak Brook
Pathway System, there is something for everyone to enjoy.
Village of Oak Brook
2016 Quick Facts
Population 7,883
Per Capita Income $131,719
Unemployment Rate 5.1%
Total Cash and
Investments $33.5 million
General Fund Cash
and Investments $16.5 million
General Fund
Reserve (cash to 2017
budgeted operating
expenditures) 9.0 months
Outstanding Debt* $3.8 million
Other Long-Term
Liabilities** $51.9 million
2016Annual Budget $51.4 million
Employees (FTE’s) 129.0 FT, 24.9 PT,
32.7 Seasonal
About the Village of Oak Brook 1
*Outstanding debt of $0.3 million is for the West Wing Expansion of Village Hall, for which the last payment is in 2017. $3.5 million is a
note payable to the 2005 Tax Increment Financing (TIF) District located at the Promenade (22nd St. and Meyers Rd.). The TIF note is not
a general obligation to the Village and it expires in 2024. Repayment of the note is limited to the availability of pledged taxes and 20% of in-
cremental sales tax.
**Other long-term liabilities consist of net pension liability, net other postemployment benefit obligations, and compensated ab sences.
The Village of Oak Brook operates under the Trustee/Village form of government. The Village is governed
by our elected Village President and a six-member Board of Trustees—each elected at large for a four-year
term of office. The Village Clerk is elected for a four-year term, attends meetings of the Village Board, keeps
its minutes, and is the official custodian of Village records. Elections are held biennially, during odd-
numbered years, on the first Tuesday in April.
The Village Board’s primary function is policy making. The Village President, with the consent of the
Board, appoints a Village Manager to administer daily administrative operations of the Village. The Village
President presides over meetings of the Board, and selects and removes appointed officers of various boards,
commissions and committees with the consent of the Board.
3
Village of Oak Brook Leadership 2
Front row from left to right: Trustee Donald Adler, Village Attorney Stewart Diamond, President Gopal
Lalmalani, Village Manager Riccardo Ginex, Trustee John Baar. Second row from left to right: Trustee Asif
Yusuf, Trustee Mark Moy, Village Clerk Charlotte Pruss, Trustee Michael Manzo, Trustee Edward Tiesenga.
Village of Oak Brook Organizational Chart
2016 Major Accomplishments 3
The Village had many accomplishments during fiscal year 2016. Below is a summary of some of the
significant accomplishments by each department. The 2017 budget document contains a full listing of 2016
accomplishments in each program objective narrative.
Planned Initiatives for 2016-2017 4
Every two years, the Village works on updating its Strategic Plan. The current 2016-2017 Strategic Plan
was developed in May 2015 through planning sessions with Village department heads and the Village Board.
The Village developed six key goals, along with objectives on how to achieve the goals:
The Statement of Net Position (commonly known as the “balance sheet”) reports information on all of the
Village’s assets, liabilities, and deferred inflows and outflows, with the difference reported as its “net
position.” Net position measures the resources (cash, investments, receivables, capital assets, etc.) of the
Village and any claims (payables, deposits, debt, etc.) against those resources. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the
Village is improving or deteriorating. The table below shows that, as of December 31, 2016, the Village’s
total net position was $81.2 million.
The largest portion of the Village’s net position, $91.0 million, reflects its investment in capital assets, less
any outstanding debt used to acquire those assets. The Village uses these capital assets to provide services
to its residents. Consequently, these assets are not available for future spending. An additional portion of
the net position, approximately $12.4 million, is subject to external restrictions on how it may be used.
The unrestricted portion of net position represents a $22.2 million deficit. This is primarily due to the
unfunded pension liabilities related to the IMRF (Illinois Municipal Retirement Fund), Police, and Fire
pension plans.
Financial Statements 5
Governmental Business-Type Total Primary
Activities Activities Government Total
2016 2015 2016 2015 2016 2015 Change
Cash and Investments $30.1 $27.3 $3.4 $1.8 $33.5 $29.1 $4.4
Current and Other Assets 8.3 7.4 1.9 1.7 10.2 9.1 1.1
Capital Assets 60.7 61.3 30.6 31.4 91.3 92.7 (1.4)
Total Assets $99.1 $96.0 $35.9 $34.9 $135.0 $130.9 $4.1
Deferred Outflows of Resources $7.2 $7.6 $0.9 $0.4 $8.1 $8.0 $0.1
Long-Term Liabilities $54.2 $54.0 $1.5 $0.7 $55.7 $54.7 $1.0
Other Liabilities 3.2 4.1 0.7 1.0 3.9 5.1 (1.2)
Total Liabilities $57.4 $58.1 $2.2 $1.7 $59.6 $59.8 $(0.2)
Deferred Inflows of Resources $2.1 $0.7 $0.2 $0.1 $2.3 $0.8 $1.5
Net Investment in
Capital Assets $60.5 $60.7 $30.5 $31.4 $91.0 $92.1 $(1.1)
Restricted 12.4 11.3 - - 12.4 11.3 1.1
Unrestricted (26.1) (27.2) 3.9 2.1 (22.2) (25.1) 2.9
Total Net Position $46.8 $44.8 $34.4 $33.5 $81.2 $78.3 $2.9
Statement of Net Position
(In millions)
The Statement of Activities (commonly known as the “income statement”) reports all financial activity for
the fiscal year ended December 31, 2016.
This statement presents high-level summary information about how the Village’s net position changed
during the fiscal year. Total revenues increased $3.2 million, or 7.8%, compared to prior year. The Village
experienced increases in all major revenue sources except other taxes and miscellaneous revenue. Sales and
local use taxes continue to be the Village’s largest revenue source and reflected an increase of $1.2 million, or
6.6%, compared to the prior year.
Total expenses decreased $(9.7) million, or (19.0)%, compared to the prior year. This was primarily due to
the implementation of GASB 68 and 71 in 2015, which recognized $10.4 million in pension expense in 2015
compared to $2.3 million in 2016. The difference relates to implementing the new standard in 2015 that
established beginning balances that were previously not measurable. The Village also experienced decreases
in capital spending related street repaving projects, reduced legal fees, and reduced other contractual services
during 2016. The Village’s net position has increased $2.9 million, or 3.7% during fiscal year 2016.
Financial Statements 6
Governmental Business-Type Total Primary
Activities Activities Government Total
2016 2015 2016 2015 2016 2015 Change
Revenues
Program Revenues
Charges for Services $3.5 $3.0 $12.2 $10.8 $15.7 $13.8 $1.9
Grants and Contributions 0.3 0.2 - - 0.3 0.2 0.1
General Revenues
Sales and Local Use Taxes 19.3 18.1 - - 19.3 18.1 1.2
Utility Taxes 6.0 5.7 - - 6.0 5.7 0.3
Other Taxes 2.7 2.8 - - 2.7 2.8 (0.1)
Investment Income 0.2 0.2 - - 0.2 0.2 -
Miscellaneous 0.1 0.3 - - 0.1 0.3 (0.2)
Transfers - (0.5) - 0.5 - - -
Total Revenues $32.1 $29.8 $12.2 $11.4 $44.3 $41.1 $3.2
Expenses
General Government $4.7 $5.3 $- $- $4.7 $5.3 $(0.6)
Public Safety 17.2 24.6 - - 17.2 24.6 (7.4)
Public Works 6.4 7.7 - - 6.4 7.7 (1.3)
Culture and Recreation 1.5 1.5 - - 1.5 1.5 -
Waterworks System - - 8.0 8.0 8.0 8.0 -
Sports Core - - 3.3 3.7 3.3 3.7 (0.4)
Interest and Fiscal Charges 0.3 0.3 - - 0.3 0.3 -
Total Expenses $30.1 $39.4 $11.3 $11.7 $41.4 $51.1 $(9.7)
Change in Net Position $2.0 $(9.6) $0.9 $(0.4) $2.9 $(10.0) $12.9
Net Position, January 1 $44.8 $54.4 $33.5 $33.9 $78.3 $88.3 $(10.0)
Net Position, December 31 $46.8 $44.8 $34.4 $33.5 $81.2 $78.3 $2.9
Statement of Activities
(In millions)
Key financial highlights of fiscal year 2016 include:
For the year ending December 31, 2016, the Village’s assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $81.2 million (referred to as net position).
For FY16, the Village recognized $2.3 million in pension expense in accordance with GASB Statements
68 and 71 related to its IMRF, Police, and Fire pension plans. See page 10 for further information on the
Village’s pension plans.
The governmental activities (general government, public safety, highways and streets, library and
community development) reported a total net position of $46.8 million, which is an increase of $2.0
million, or 4.5%, from the prior year balance. The unrestricted portion of the net position is a $(26.1)
million deficit (an excess of liabilities over assets), which is primarily the result of the unfunded pension
liability balance. The unfunded pension liability is a long-term liability that fluctuates over time with
investment returns, actuarial assumption changes, and funding policy changes. It is not necessarily what
the Village will budget to pay in the following fiscal year.
The business-type (for profit) activities (Water and Sports Core) reported a total net position of $34.4
million, which represents a $0.9 million, or 2.7%, increase from the prior year balance. Approximately
11.3% of the total, or $3.9 million is unrestricted.
The Village’s total net position increased by $2.9 million, or 3.7%, compared to the prior year balance.
This is primarily due to increases in revenue sources such as sales tax, non-home rule sales tax, utility/
telecommunications tax, building permit and licenses fees, and water sales. Expenditures also saw
decreases in 2016 compared to 2015 due to reductions in legal fees, other contractual services, street
resurfacing, and pension expense.
The Village had a total deficit of $(26.1) million in its unrestricted net position. This is an increase of
$2.9 million from the 2015 balance of a $(25.1) million deficit.
Explanation, Analysis, and Discussion of Financial Statements 7
Overview of Financial Position and Results of Activities
Like other local governments, the Village of Oak Brook utilizes fund accounting. Fund accounting
segregates related accounts and activities into separate funds to ensure and demonstrate compliance with
legal and regulatory requirements. Village funds can be classified in three categories: governmental funds,
business-type funds, and fiduciary funds.
Governmental funds are used to account for all or most of the Village’s general activities, including general
administration, public safety, highways and streets, library, and community development. The General Fund
is used to account for and report all financial resources not accounted for and reported in another fund.
Business-type funds are used to account for activities similar to those found in the private sector, where the
determination of net income is necessary or useful for sound financial administration. Goods or services
from these activities can be provided to either outside parties (enterprise funds) or to other departments or
agencies primarily within the government (internal service funds) with costs being recovered through user -
fees and charges.
Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments,
or on behalf of other funds within the government. The Police and Fire Pension funds are governed by
separate five member pension boards, consisting of two members appointed by the Village Board, one elected
by retired pension members, and two elected by active pension members. The Village and active pension
members are obligated to fund all pension costs based upon actuarial valuations, which are approved by the
Village Board. Financial activity of fiduciary funds are not included in governmental or business-type
activities.
Explanation, Analysis, and Discussion of Financial Statements 8
Village Fund Structure
The foundation of the Village’s financial planning is centered on the Village Board’s well publicized policy of
maintaining a cash and investments reserve in the General Fund that meets or exceeds six months of annual
operating expenses. The six month policy level was established due to the Village not having the
predictability of real estate tax revenue and the fact that most of its general revenues are collected by the
State (sales and telecommunications tax) having a two to three month delay. This conservative policy seeks
to ensure the Village will have sufficient funds on hand to operate in an emergency situation as well as
having sufficient time to address any economic downturns.
As of December 31, 2016, the Village had $33.5 million in cash and investments on hand, an increase of $4.4
million from December 31, 2015. The General Corporate Fund cash and investments balance of $16.5
million is equal to 9.0 months of 2017 budgeted operating expenses. Cash and investments by fund was as
follows:
Explanation, Analysis, and Discussion of Financial Statements 9
The Village’s overall cash and investment balance is made up of various sources. As of December 31, 2016,
the Village’s cash and investment portfolio consisted of:
Summary on Village Cash and Investments
General
Corporate
49.3%
Hotel/Motel
Tax
13.1%
Motor Fuel
Tax
2.7%
Promenade
TIF
0.9%
Water
8.1%
Foreign Fire
Insurance
0.6%
Self-Insurance
1.8%
Sports Core
2.1%
Equipment
Replacement
4.5%
Infrastructure
16.1%Garage
0.9%
Checking, $1.0
Illinois Funds,
$12.4
Certificates of
Deposit, $6.0
Municipal Bonds,
$7.6
Corporate Bonds,
$3.7
Government &
Agency
Obligations, $2.8
in millions
Explanation, Analysis, and Discussion of Financial Statements 10
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund
(IMRF), an agent multiple-employer public employee retirement system; the Police Pension Plan, which is a
single-employer pension plan; and the Firefighter’s Pension Plan, which is also a single-employer pension
plan. The benefits, benefit levels, employee contributions, and employer contributions for all three plans are
governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. For
further information on these pension plans, refer to the Village’s 2016 CAFR.
Related to these pension plans, the Village reports, under long-term liabilities on the Statement of Net
Position, an unfunded pension liability of $48.8 million for governmental activities and $1.3 million for
business-type activities, for a total of $50.1 million as of December 31, 2016.
Actual cash contributions to the pension funds for 2016 totaled $4.0 million. This consisted of: $0.7 million
for the IMRF pension plan, $1.5 million for the Police pension plan, and $1.8 million for the Fire pension
plan. Current State statutes require the Village’s contributions must accumulate to the point where the past
service cost for the Police and Fire pension plans is 90% funded by the year 2040. The Village also
recognized pension expense on the Statement of Activities related to GASB Statements 68 and 71 of $2.2
million for governmental activities and $0.1 million for business-type activities, for a total of $2.3 million for
FY2016. Between cash contributions and GASB 68 and 71 reporting adjustments, the Village realized a
total of pension expense of $6.3 million in 2016.
The Village’s total net pension liability at 12/31/16 is:
IMRF Police Pension Fire Pension Total
Total Pension Liability $ 36,777,570 $ 54,407,673 $ 49,274,222 $ 140,459,465
Plan Fiduciary Net Position 31,841,190 33,534,050 24,995,420 90,370,660
Unfunded Pension Liability $ 4,936,380 $ 20,873,623 $ 24,278,802 $ 50,088,805
Combined annual Public Safety (Police and Fire) recommended pension contributions are expected to
increase from $3.8 million in 2017 to $6.0 million in 2040 assuming a 100% funding target. The unfunded
pension liability is expected to range from $42.4 million in 2017 to $5.5 million in 2040 assuming 100%
funding, with a peak of $45.5 million forecasted in 2021. Actual contributions and unfunded liability for
these years could vary depending on key actuarial assumptions, including salary increases, mortality tables,
investment returns, and Village funding levels.
Summary on Village Pension Plans
2016 Total Revenues $44,294,387
Explanation, Analysis, and Discussion of Financial Statements 11
2016 Actual % of Total
Sales Tax
Sales tax covers all the various taxes imposed under the Retailers Occupation tax, the service Occupation tax,
and the Use Tax Act. Every business conducting revenue operations must pay sales tax to the State of Illinois.
The Village currently receives 1.50% of eligible sales.
$19,261,998 43.5%
Utility/Telecom Tax
The Village taxes telecommunications, natural gas, and electricity. Electricity and gas are based on usage,
therefore, revenues will fluctuate with consumer usage and weather conditions. The Village receives 5% tax
from NICOR and a 10-tiered formula based on kilowatts used from Commonwealth Edison. Taxes are also
imposed on interstate or intrastate telecommunications originating or received in the Village by a person at a
rate of 6% of gross charges.
5,967,345 13.5%
Hotel/Motel Tax
Tax imposed upon the use and privilege of renting rooms in a hotel or motel within the Village. The Village
imposes a 3% tax, of which 1% is used to promote overnight stays and 2% for beautification in the hotel district.
1,270,131 2.9%
Intergovernmental
Amounts received from other governments for support of particular functions or for general financial support.
Includes State income tax and personal property replacement tax.
1,047,144 2.3%
Charges for Services
Charges imposed for providing services. Total charges for services is comprised of: Water $8,812,128, Sports
Core $3,381,345, and Governmental (licenses, permits, fees) $3,487,454.
15,680,927 35.4%
Grants
Funds received from federal and state agencies to assist the Village in offsetting expenditures related to various
programs.
272,790 0.6%
All Other Revenue Sources
794,052 1.8% Consists of property tax, other tax, gain on disposal of capital assets, investment income, and other revenue.
$44,294,387 100.0%
Revenue Overview
$36
$37
$38
$39
$40
$41
$42
$43
$44
$45
2012 2013 2014 2015 2016Millions
2016 Total Expenses $41,366,137
Explanation, Analysis, and Discussion of Financial Statements 12
2016 Actual % of Total
General Government
Includes various administrative services of the Village (Legislative and General Management, Human Re-
sources, Finance, Information Systems, and Community Development).
$4,658,830 11.2%
Public Safety
Includes expenses associated with providing police and fire protection services to the
Village.
17,162,874 41.5%
Public Works
Includes Public Works administration, buildings and grounds, forestry, snow removal, and streets services. 6,444,838 15.6%
Culture and Recreation
Includes Library services and Hotel/Motel expenses to increase overnight stays in hotels within the Village. 1,521,582 3.7%
Waterworks System
Includes the costs associated with providing water services to the Village. 7,933,966 19.2%
Sports Core
Includes all Sports Core operations (Bath & Tennis Club, Polo, Taste of Oak Brook, Golf Club). 3,339,863 8.1%
Interest
304,184 0.7% Includes interest costs on all Village debt.
$41,366,137 100.0%
Note - The increase in total expenses in 2015 relates to the recording of $10.4 million in pension expense related to the
implementation of GASB Statements No. 68 and 71. Fiscal year 2015 was the first year the expense was recorded on the Village ’s
financial statements.
Expense Overview
$32
$34
$36
$38
$40
$42
$44
$46
$48
$50
$52
2012 2013 2014 2015 2016Millions
Key Statistics 13
2012 2013 2014 2015 2016
General
Debt per capita $907 $636 $583 $534 $480
DuPage County unemployment rate 7.3% 7.5% 5.7% 4.7% 5.1%
Property tax rate* 3.2026 3.5871 3.8389 3.9263 3.7945
Estimated retail sales $1,118,547,800 $1,110,317,900 $1,209,120,800 $1,235,726,800 $1,310,311,500
Total sales tax receipts—cash basis $16,280,075 $16,812,799 $17,341,263 $18,043,872 $19,019,578
Police
Physical arrests 234 178 196 208 191
Parking violations 636 501 306 299 901
Traffic violations 3,137 2,897 2,986 2,082 1,465
Fire
EMS incidents 1,113 1,191 1,321 1,329 1,432
Fire incidents 656 667 742 600 630
Communications Center (DUCOMM)
Police calls dispatched 12,696 18,552 19,853 19,442 23,924
Fire/EMS calls dispatched 2,071 2,294 2,448 2,246 2,407
Library
Total circulation 91,017 93,300 90,485 91,205 112,423
Total holdings 128,343 131,658 131,973 102,441 97,201
Community Development
Building permits issued 770 811 837 850 841
Estimated construction value $76,987,646 $131,935,998 $110,922,495 $174,948,935 $99,520,330
Inspections 2,311 2,617 2,648 2,790 2,999
Sports Core
B&T recreation memberships 363 347 338 307 317
Social memberships 67 68 82 81 77
Total events 56 66 72 71 75
Golf memberships 154 146 143 142 145
Total golf rounds 38,637 34,670 33,861 34,019 39,324
*Individual property tax rates may vary depending on school district boundaries.
If you have any questions concerning this report or would like to offer any ideas or suggestions for
improvement, please feel free to contact Jason Paprocki, Finance Director, at (630) 368-5070 or email at
jpaprocki@oak-brook.org.
The Village maintains a digital platform powered by OpenGov that provides residents, elected officials, and
staff unprecedented access to the Village’s finances. Financial information is updated on a monthly basis.
OpenGov is a fully interactive platform that allows users to sort and filter financial data as they choose.
Users can review things such as historical spending by department, a Village cash and investments summary,
and all vendor checks written since 2008. Please visit http://www.oak-brook.org/362/Open-Government
for more information.
Important Numbers
and Addresses
Village Hall
630/368-5000
1200 Oak Brook Road
Oak Brook, IL 60523
Fire HQ
(Non-Emergency)
630/368-5200
Police HQ
(Non-Emergency)
630/368-8700
Public Works
630/368-5270
For Police or Fire
Emergencies
Dial 911
Management Team
Village Manager
Riccardo Ginex
rginex@oak-brook.org
Police Chief IT Director
James Kruger James Fox
jkruger@oak-brook.org jfox@oak-brook.org
Fire Chief Head Librarian
Barry Liss Jacob Post
bliss@oak-brook.org jpost@oak-brook.org
Public Works Director Golf Superintendent
Doug Patchin Sean Creed
dpatchin@oak-brook.org screed@oak-brook.org
Development Services Director B&T Club Manager
Robert Kallien Chris Thompson
rkallien@oak-brook.org cthompson@oak-brook.org
Finance Director
Jason Paprocki
jpaprocki@oak-brook.org
Contact Information 14
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