2008-080ORDINANCE NO. 2008- 80
AN ORDINANCE FOR THE LEVY AND COLLECTION OF TAXES FOR
THE FISCAL YEAR COMMENCING ON THE 1ST DAY OF JANUARY, 2009
AND ENDING ON THE 31ST DAY OF DECEMBER, 2009
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO
GROVE, COUNTIES OF COOK AND LAKE, ILLINOIS, A HOME -RULE MUNICIPALITY:
SECTION 1. There is hereby levied upon all the taxable property within the corporate limits of said Village of Buffalo
Grove, Counties of Cook and Lake, State of Illinois, the total sum of Thirteen Million Four Hundred Sixty -Seven
Thousand Five Hundred Thirteen Dollars ($13,467,513.00) for the following specific purposes and for the fiscal year
commending January 1, 2009 and ending December 31, 2009.
SECTION 2. General Corporate Tax. A tax is hereby imposed for the General Corporate purposes in this Village in the
amount of Seven Million Two Hundred Twenty -Seven Thousand Seven Hundred Dollars ($7,227,700.00) spread equally
over the value, as assessed and equalized by the Department of Revenue of all the taxable property within the corporate
limits therein.
SECTION 3. Illinois Municipal Retirement Fund Tax. A fiuther tax is hereby imposed for the purpose of Village
retirement in this Village in the amount of One Million Four Hundred Eighty -One Thousand Nine Hundred Twenty -one
Dollars ($1,481,921.00) spread equally over the value, as assessed and equalized by the Department of Revenue of all
taxable property therein, all in accordance with the provisions of Chapter 40, Section 5/7 -171 of the Illinois Pension
Code.
SECTION 4. Police Pension Fund. A further tax is hereby imposed for the purpose of continuing to provide a Police
Pension Fund in this Village in the amount of One Million Seven Hundred Fifty -Four Thousand Six Hundred Sixty -Four
Dollars ($1,754,664.00) spread equally over the value, as assessed and equalized by the Department of Revenue of all the
taxable property therein all in accordance with the provision of Chapter 40, Section 5/3 -125 of the Illinois Pension Code.
SECTION 5. Firefighter's Pension Fund. A fiirther tax is hereby imposed for the purpose of continuing to provide a
Firemen's Pension Fund in this Village in the amount of One Million Five Hundred Six Thousand Three Hundred Forty-
Three Dollars ($1,506,343.00) spread equally over the value, as assessed and equalized by the Department of Revenue of
all the taxable property therein, all in accordance with the provisions of Chapter 40, Section 5/4 -118 of the Illinois
Pension Code.
SECTION 6. Corporate Purpose General Oblation Bonds -Series 2001 -A. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of Four Hundred
Twenty -Nine Thousand Five Hundred Seventeen Dollars and Fifty Cents ($429,517.50) spread equally over the value,
assessed and equalized by the Department of Revenue of all taxable property therein, all in accordance with Chapter 65,
Section 5/8 -4 -25 of the Illinois Municipal Code and by adoption of Ordinance No. 2001 -008.
SECTION 7. Corporate Purpose General Obligation Bonds -Series 2001 -B. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of Six Hundred
Six Thousand Five Hundred Thirty-Two Dollars and Fifty Cents ($606,532.50) spread equally over the value, assessed
and equalized by the.Department of Revenue of all taxable property therein, all in accordance with Chapter 65, Section
5/8 -4 -25 of the Illinois Municipal Code and by adoption of Ordinance No. 2001 -009.
SECTION 8. Corporate Purpose General Obligation Bonds - Series 2002 -B. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of One Hundred
Forty-Six Thousand Two Hundred Seventy -Five Dollars ($146,275.00) spread equally over the value, assessed and
equalized by the Department of Revenue of all taxable property therein, all in accordance with Chapter 65, Section 5/8 -4-
25 of the Illinois Municipal Code and by adoption of Ordinance No. 2002 -011.
SECTION 9. Corporate Purpose General Obligation Bonds - Series 2003. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of Three Hundred
Fourteen Thousand Five Hundred Sixty Dollars ($314,560.00) spread equally over the value, assessed and equalized by
the Department of Revenue of all taxable property therein, all in accordance with Chapter 65, Section 5/8 -4 -25 of the
Illinois Municipal Code and by adoption of Ordinance No. 2003 -023.
The Police Pension Fund levy has been calculated by an independent actuary based on an actuarial review of the Fund
and its membership as of December 31, 2007. The Annual Report of Condition for the Fund has been completed and is
part of this packet and was presented to the President and Board of Trustees on August 18, 2008 with some estimates
calculated for calendar 2009. The presentation of the Report is a requirement of the Pension Code and must precede the
adoption of an annual tax levy.
Likewise, the Fire Pension Fund levy has been calculated by the actuary as of December 31, 2007, following the same
criterion employed for the Police Pension Fund. The Annual Report of Condition for the Fund was also completed and is
also part of this packet, as presented to the President and Board of Trustees as of August 18, 2008 with some estimates
calculated for calendar 2009. As with the Police Pension Fund, presentation of the Report is a requirement within the
Pension Code and must precede the adoption of the tax levy.
As part of their pension oversight activities, the Illinois Department of Insurance provides a recommended levy for local
fire and police pension funds. However, the Village can utilize an independent actuarial review of the fund(s) for
purposes of establishing a levy. Past practice continues to indicate that the independent levy recommendation will
provide tax savings for the Village compared to IDOI recommendations while meeting the objectives of the Illinois
Pension Code. While the independent recommendations have been the basis for the levy proposal, the Village has
received valuations prepared by the Illinois Department of Insurance for the year ended December 31, 2007. It is
recommended that the alternate valuations be accepted as a conservative approach in addressing both immediate and long
term funding objectives for the Fund's. It is also recommended that the "Experience Analysis" section be reviewed for
both Fund's in order to obtain a clearer understanding as to the changes impacting the inter -year levy changes for both the
Police and Fire Pension funds.
Excerpts from the actuarial reports are attached as an exhibit to the levy development materials. The full reports have
been delivered to the pension boards and are available for review if desired.
The levies requested for the three pension programs total $4,742,928 versus $4,240,667 levied and $4,306,158 extended
in 2008 (for tax year 2007), an increase ofl 1.8% and 10.1 %, respectively.
Debt Service Levies: The debt levies to be considered are for the following issues and purposes:
Corporate Purpose Bonds - Series 2001 -A and 200 1 -B-Funding for the facilities development program at the
Arboretum Golf Course; to refund the Village's Series 1992, 1994 and 1995 Corporate Purpose Bonds (Partial).
Corporate Purpose Bonds - Series 2002 -B -to fund facilities development activities at the Arboretum Golf
Course.
Corporate Purpose Bonds- Series 2003, to fund infrastructure commitments for street and highway design and
construction.
The total amount levied is $1,496,885 versus $1,526,312 for the 2007 levy, a decrease of $29,427 or (1.93 %).
Abatements adopted for credit against the 2007 debt service levies totaled $785,000, or 51.4% of that period's debt
service needs. It is anticipated that abatements will be presented for consideration after additional analysis of all levies is
undertaken prior to December 31, 2008. Consideration will be based on an analysis of debt service fund balance,
operating reserves, transfers from operations, and alternative funding sources, especially from water and sewer as well as
golf rates and fees.
Tax Abatements: Any property tax levy can be reduced up to 100% of the original request prior to the final extension of
taxes. As stated, complete and/or partial abatements will be presented for certain of the debt service levies and possibly
for pension levies. A comprehensive property tax abatement ordinance will be presented to the President and Board of
Trustee prior to December 31, 2008. An analysis of tax abatements from tax year 1977 is attached for informational
purposes comparing levy as adopted, abatements approved, percentage of levy, and value per $100 A.E.V.
Truth -in- Taxation: The Act establishing Truth -in- Taxation requires that notice and a hearing be conducted if the
proposed tax levies for Corporate and Special Purpose Tax Levies exceed the prior years like extension by 5% or more.
The Act further requires that a determination be made if the proposed levies for Corporate and Special Purposes are
anticipated to exceed the prior year's like levy extensions by 5 %. That determination was made and entered into the
public record on Monday, November 3, 2008. At that time, it was determined that the 5% threshold would be exceeded
and therefore, a formal hearing would be required as contemplated in the Act.
As for the primary obligations under Truth In Taxation, the proposed levies for Corporate and Special Purpose levies
total $11,970,628 compared to the final 2007 extension plus adopted abatements of $11,328,115, an increase of 5.67 %.
Information regarding Truth -in- Taxation is attached. The Corporate Authorities, within the parameters of the Act, have
made the appropriate levy determination.
0
SECTION 10. A recapitulation of the foregoing levied funds is as follows:
LEVIED FUNDS
General Corporate
$ 7,227,700.00
Illinois Municipal Retirement Fund
1,481,921.00
Police Pension Fund
1,754,664.00
Firefighter's Pension Fund
1,506,343.00
Facilities Development Debt Service -Series 2001 -A
429,517.50
Facilities Development Debt Service -Series 2001 -B
606,532.50
Facilities Development Debt Service -Series 2002 -B
146,275.00
Facilities Development Debt Service -Series 2003
314,560.00
Grand Total Tax Levy
$13,467,513.00
SECTION 11. The Village Clerk is hereby authorized to file a copy of this Ordinance, duly certified, along with any
statutory representations or certifications, with the County Clerk of Cook County, Illinois, and the County Clerk of Lake
County, Illinois, within the time limit prescribed by law.
SECTION 12. If any item or portion of this Ordinance is for any reason held invalid, such decision shall not affect the
validity of the remaining portion of such item or the remaining portion of this Ordinance.
SECTION 13. Detailed Appropriations by line item for the fiscal year commencing on the 1 st day of January 2009 and
ending on the 31 st day of December 2009, along with corresponding levy by Fund are attached as Exhibit "A" to this
Ordinance.
SECTION 14. That this Ordinance shall be in full force and effect from and after its passage and approval. This
Ordinance shall not be codified.
AYES: 6 — Braiman, Glover, Berman, Kahn, Trilling, Rubin
NAYES: 0 — None
ABSENT: 0 — None
PASSED this 1st day of December , 2008.
APPROVED this 1st day of December , 2008.
Village President
ATTEST:
(13v--j CZ71`9
lage Clerk jv_tic� '
STATE OF ILLINOIS) ss.
COUNTY OF COOK )
CERTIFICATE
I, Janet M. Sirabian, certify that I am the duly elected
and acting Village Clerk of the Village of Buffalo
Grove, Cook and Lake Counties, Illinois. I fixrther
certify that on, December 1, 2008 the Corporate
Authorities of the Village passed and approved
Ordinance No. 2008 -80, AN ORDINANCE FOR THE
LEVY AND COLLECTION OF TAXES FOR THE FISCAL
YEAR COMMENCING ON THE 1ST DAY OF JANUARY, 2009
AND ENDING ON THE 31ST DAY OF DECEMBER, 2009
provided by its terms that it should be published in
pamphlet form.
The pamphlet form of Ordinance No. 2008 -80,
including the Ordinance and a sheet thereof, was
prepared, and a copy of such Ordinance was posted
in and at the Village Hall, commencing on December
1, 2008 and continuing for at least ten days thereafter.
Copies of such Ordinance were also available for
public inspection upon request in the Office of
Village Clerk.
Dated at Buffalo Grove, Illinois, this 2ndh day of
December, 2008.
�k��i • �%� U c/�LQ/I7/
Villa Clerk
By
ORDINANCE NO. 2008- 80
AN ORDINANCE FOR THE LEVY AND COLLECTION OF TAXES FOR
THE FISCAL YEAR COMMENCING ON THE 1ST DAY OF JANUARY, 2009
AND ENDING ON THE 31ST DAY OF DECEMBER, 2009
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO
GROVE, COUNTIES OF COOK AND LAKE, ILLINOIS, A HOME -RULE MUNICIPALITY:
SECTION 1. There is hereby levied upon all the taxable property within the corporate limits of said Village of Buffalo
Grove, Counties of Cook and Lake, State of Illinois, the total sum of Thirteen Million Four Hundred Sixty -Seven
Thousand Five Hundred Thirteen Dollars ($13,467,513.00) for the following specific purposes and for the fiscal year
commending January 1, 2009 and ending December 31, 2009.
SECTION 2. General Corporate Tax. A tax is hereby imposed for the General Corporate purposes in this Village in the
amount of Seven Million Two Hundred Twenty -Seven Thousand Seven Hundred Dollars ($7,227,700.00) spread equally
over the value, as assessed and equalized by the Department of Revenue of all the taxable property within the corporate
limits therein.
SECTION 3. Illinois Municipal Retirement Fund Tax. A further tax is hereby imposed for the purpose of Village
retirement in this Village in the amount of One Million Four Hundred Eighty -One Thousand Nine Hundred Twenty -one
Dollars ($1,481,921.00) spread equally over the value, as assessed and equalized by the Department of Revenue of all
taxable property therein, all in accordance with the provisions of Chapter 40, Section 5/7 -171 of the Illinois Pension
Code.
SECTION 4. Police Pension Fund. A further tax is hereby imposed for the purpose of continuing to provide a Police
Pension Fund in this Village in the amount of One Million Seven Hundred Fifty -Four Thousand Six Hundred Sixty -Four
Dollars ($1,754,664.00) spread equally over the value, as assessed and equalized by the Department of Revenue of all the
taxable property therein all in accordance with the provision of Chapter 40, Section 5/3 -125 ofthe Illinois Pension Code.
SECTION 5. Firefighter's Pension Fund. A fiurther tax is hereby imposed for the purpose of continuing to provide a
Firemen's Pension Fund in this Village in the amount of One Million Five Hundred Six Thousand Three Hundred Forty-
Three Dollars ($1,506,343.00) spread equally over the value, as assessed and equalized by the Department of Revenue of
all the taxable property therein, all in accordance with the provisions of Chapter 40, Section 5/4 -118 of the Illinois
Pension Code.
SECTION 6. Corporate Purpose General Obligation Bonds -Series 2001 -A. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of Four Hundred
Twenty -Nine Thousand Five Hundred Seventeen Dollars and Fifty Cents ($429,517.50) spread equally over the value,
assessed and equalized by the Department of Revenue of all taxable property therein, all in accordance with Chapter 65,
Section 5/8 -4 -25 of the Illinois Municipal Code and by adoption of Ordinance No. 2001 -008.
SECTION 7. Corporate Purpose General Obligation Bonds -Series 2001 -B. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of Six Hundred
Six Thousand Five Hundred Thirty-Two Dollars and Fifty Cents ($606,532.50) spread equally over the value, assessed
and equalized by the Department of Revenue of all taxable property therein, all in accordance with Chapter 65, Section
5/8 -4 -25 of the Illinois Municipal Code and by adoption of Ordinance No. 2001 -009.
SECTION 8. Corporate Purpose General Obligation Bonds -Series 2002 -B. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of One Hundred
Forty-Six Thousand Two Hundred Seventy -Five Dollars ($146,275.00) spread equally over the value, assessed and
equalized by the Department of Revenue of all taxable property therein, all in accordance with Chapter 65, Section 5/8-4-
25 of the Illinois Municipal Code and by adoption of Ordinance No. 2002 -011.
SECTION 9. Corporate Purpose General Obligation Bonds - Series 2003. A further tax is hereby imposed for the
retirement of Corporate Purpose General Obligation Bonds, bond principal and interest, in the amount of Three Hundred
Fourteen Thousand Five Hundred Sixty Dollars ($314,560.00) spread equally over the value, assessed and equalized by
the Department of Revenue of all taxable property therein, all in accordance with Chapter 65, Section 5/8 -4 -25 of the
Illinois Municipal Code and by adoption of Ordinance No. 2003 -023.
The Police Pension Fund levy has been calculated by an independent actuary based on an actuarial review of the Fund
and its membership as of December 31, 2007. The Annual Report of Condition for the Fund has been completed and is
part of this packet and was presented to the President and Board of Trustees on August 18, 2008 with some estimates
calculated for calendar 2009. The presentation of the Report is a requirement of the Pension Code and must precede the
adoption of an annual tax levy.
Likewise, the Fire Pension Fund levy has been calculated by the actuary as of December 31, 2007, following the same
criterion employed for the Police Pension Fund. The Annual Report of Condition for the Fund was also completed and is
also part of this packet, as presented to the President and Board of Trustees as of August 18, 2008 with some estimates
calculated for calendar 2009. As with the Police Pension Fund, presentation of the Report is a requirement within the
Pension Code and must precede the adoption of the tax levy.
As part of their pension oversight activities, the Illinois Department of Insurance provides a recommended levy for local
fire and police pension funds. However, the Village can utilize an independent actuarial review of the fund(s) for
purposes of establishing a levy. Past practice continues to indicate that the independent levy recommendation will
provide tax savings for the Village compared to IDOI recommendations while meeting the objectives of the Illinois
Pension Code. While the independent recommendations have been the basis for the levy proposal, the Village has
received valuations prepared by the Illinois Department of Insurance for the year ended December 31, 2007. It is
recommended that the alternate valuations be accepted as a conservative approach in addressing both immediate and long
term funding objectives for the Fund's. It is also recommended that the `Experience Analysis" section be reviewed for
both Fund's in order to obtain a clearer understanding as to the changes impacting the inter -year levy changes for both the
Police and Fire Pension funds.
Excerpts from the actuarial reports are attached as an exhibit to the levy development materials. The full reports have
been delivered to the pension boards and are available for review if desired.
The levies requested for the three pension programs total $4,742,928 versus $4,240,667 levied and $4,306,158 extended
in 2008 (for tax year 2007), an increase ofl 1.8% and 10.1 %, respectively.
Debt Service Levies: The debt levies to be considered are for the following issues and purposes:
Corporate Purpose Bonds - Series 2001 -A and 200 1 -B-Funding for the facilities development program at the
Arboretum Golf Course; to refund the Village's Series 1992, 1994 and 1995 Corporate Purpose Bonds (Partial).
Corporate Purpose Bonds - Series 2002 -B -to fund facilities development activities at the Arboretum Golf
Course.
Corporate Purpose Bonds - Series 2003, to fund infrastructure commitments for street and highway design and
construction.
The total amount levied is $1,496,885 versus $1,526,312 for the 2007 levy, a decrease of $29,427 or (1.93 %).
Abatements adopted for credit against the 2007 debt service levies totaled $785,000, or 51.4% of that period's debt
service needs. It is anticipated that abatements will be presented for consideration after additional analysis of all levies is
undertaken prior to December 31, 2008. Consideration will be based on an analysis of debt service fund balance,
operating reserves, transfers from operations, and alternative funding sources, especially from water and sewer as well as
golf rates and fees.
Tax Abatements: Any property tax levy can be reduced up to 100% of the original request prior to the final extension of
taxes. As stated, complete and/or partial abatements will be presented for certain of the debt service levies and possibly
for pension levies. A comprehensive property tax abatement ordinance will be presented to the President and Board of
Trustee prior to December 31, 2008. An analysis of tax abatements from tax year 1977 is attached for informational
purposes comparing levy as adopted, abatements approved, percentage of levy, and value per $100 A.E.V.
Truth -in- Taxation: The Act establishing Truth -in- Taxation requires that notice and a hearing be conducted if the
proposed tax levies for Corporate and Special Purpose Tax Levies exceed the prior years like extension by 5% or more.
The Act further requires that a determination be made if the proposed levies for Corporate and Special Purposes are
anticipated to exceed the prior year's like levy extensions by 5 %. That determination was made and entered into the
public record on Monday, November 3, 2008. At that time, it was determined that the 5% threshold would be exceeded
and therefore, a formal hearing would be required as contemplated in the Act.
As for the primary obligations under Truth In Taxation, the proposed levies for Corporate and Special Purpose levies
total $11,970,628 compared to the final 2007 extension plus adopted abatements of $11,328,115, an increase of 5.67 %.
Information regarding Truth -in- Taxation is attached. The Corporate Authorities, within the parameters of the Act, have
made the appropriate levy determination.
I
r
SECTION 10. A recapitulation of the foregoing levied funds is as follows:
LEVIED FUNDS
General Corporate
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighter's Pension Fund
Facilities Development Debt Service -Series 2001 -A
Facilities Development Debt Service -Series 2001 -B
Facilities Development Debt Service -Series 2002 -B
Facilities Development Debt Service -Series 2003
Grand Total Tax Levy
$ 7,227,700.00
1,481,921.00
1,754,664.00
1,506,343.00
429,517.50
606,532.50
146,275.00
314,560.00
$13,467,513.00
SECTION 11. The Village Clerk is hereby authorized to file a copy of this Ordinance, duly certified, along with any
statutory representations or certifications, with the County Clerk of Cook County, Illinois, and the County Clerk of Lake
County, Illinois, within the time limit prescribed by law.
SECTION 12. If any item or portion of this Ordinance is for any reason held invalid, such decision shall not affect the
validity of the remaining portion of such item or the remaining portion of this Ordinance.
SECTION 13. Detailed Appropriations by line item for the fiscal year commencing on the 1 st day of January 2009 and
ending on the 31st day of December 2009, along with corresponding levy by Fund are attached as Exhibit "A" to this
Ordinance.
SECTION 14. That this Ordinance shall be in full force and effect from and after its passage and approval. This
Ordinance shall not be codified.
AYES: 6 — Braiman, Glover, Berman, Kahn, Trilling, Rubin
NAYES: 0 — None
ABSENT: 0 — None
PASSED this 1st day of December , 2008.
APPROVED this Is t day of December , 2008.
Village President
ATTEST:
lage Clerk,