2016-08-01 - Village Board Committee of the Whole - Agenda Packet2. Special Business
A. National Research Center Presentation of the National Citizen Survey (President
Sussman)
B. Auditor Presentation (Trustee Johnson)
C. Tap Room Restaurant Plan Discussion (Trustee Johnson)
D. 6 Month Financial Report (Trustee Johnson)
E. Service Level Expectation Update (President Sussman)
F. 2017 Pay Plan and Pay Ranges Discussion (Trustee Berman)
3. Questions From the Audience
Questions from the audience are limited to items that are not on the regular agenda. In
accordance with Section 2.02.070 of the Municipal Code, discussion on questions from the
audience will be limited to 10 minutes and should be limited to concerns or comments regarding
issues that are relevant to Village business. All members of the public addressing the Village
Board shall maintain proper decorum and refrain from making disrespectful remarks or comments
relating to individuals. Speakers shall use every attempt to not be repetitive of points that have
been made by others. The Village Board may refer any matter of public comment to the Village
Manager, Village staff or an appropriate agency for review.
4. Executive Session
A. Executive Session- Section 2(C)(1) of the Illinois Open Meetings Act: the Appointment,
Employment, Compensation, Discipline, Performance, or Dismissal of Specific
Employees of the Public Body or Legal Counsel for the Public Body, Including Hearing
Testimony on a Complaint Lodged Against an Employee of the Public Body or Against
Legal Counsel for the Public Body to Determine Its Validity. (President Sussman)
5. Adjournment
The Village Board will make every effort to accommodate all items on the agenda by 10:30 p.m.
The Board, does, however, reserve the right to defer consideration of matters to another meeting
should the discussion run past 10:30 p.m.
The Village of Buffalo Grove, in compliance with the Americans with Disabilities Act, requests that
persons with disabilities, who require certain accommodations to allow them to observe and/or
participate in this meeting or have questions about the accessibility of the meeting or facilities,
contact the ADA Coordinator at 459-2525 to allow the Village to make reasonable
accommodations for those persons.
2.A
Information Item : National Research Center Presentation of the
National Citizen Survey
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
Morgan Adams, Survey Consultant and Research Associate, with the National Research Center will
present an overview of the National Citizen Survey. Staff will then present recommendations for further
action.
ATTACHMENTS:
• NCS MEMO Revised (DOCX)
Trustee Liaison
Sussman
Monday, August 1, 2016
Staff Contact
Jenny Maltas, Office of the Village Manager
Updated: 7/26/2016 9:22 AM
Page 1
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2.A.a
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MEMORANDUM
TO: Village President & Board of Trustees
FROM: Jennifer Maltas, Deputy Village Manager
Evan Michel, Management Analyst
DATE: July 26, 2016
RE: National Citizen Survey
Introduction
The Village Board approved strategic plan includes the development of a strategy to seek
feedback from residents regarding the quality of the services received from the Village. Staff
looked into several different options and is recommending that the Village Board consider the
use of The National Research Center's National Citizen Survey (NCS) as a tool to gauge resident
satisfaction and quality of service. Representatives from the NCS will be present at the meeting
to give the Village Board an overview of the program and deliverables that the Village Board can
expect.
NCS Overview
The National Research Center's National Citizen Survey is among the first scientific surveys to
gather resident opinions on a range of community issues and has been used by more than 350
unique jurisdictions in 44 states. The NCS is the only citizen survey tool endorsed by the
International City/County Management Association (ICMA) and the National League of Cities
(NLC). The NCS includes a customizable survey of questions relevant to a community. The
survey measures public opinion in eight key areas of community livability, which include Safety,
Mobility, Natural Environment, Built Environment, Economy, Recreation and Wellness,
Education and Enrichment, and Community Engagement. In each domain, residents report their
perceptions about the quality of their community and related services, as well as their own
engagement within the community.
The NCS includes:
• Multiple reports to communicate results in a way that enables every audience — staff,
elected officials, business owners, and residents — to quickly find the information they
need and want
• Surveys completed by a representative cross-section of the population
• Multiple contacts with residents to ensure adequate response rates
• Benchmarking to compare local results to those of similar communities
• Customized questions and reporting options to address specific needs
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The NCS basic service includes a multi -contact mailed survey to 1,500 households that provides
results that are statistically significant. NCS also offers a variety of add on services that can be
tailored to the community's needs.
Staff Recommendation
Staff recommends the basic service which includes:
• Full report of results, plus multiple layers of reporting to meet the needs of different
stakeholders
• Responses weighted to reflect characteristics of your entire community
• Benchmarking against more than 500 citizen survey results
• Tracking of results and response rates by geographic area
• Opt -in web survey included in addition to the scientific, random -sampled survey
Staff also recommends the "primarily by mail" option that does not utilize an online component
as the collection method for the NSC. This method provides direct contact with the preselected,
statistically significant segment of the residents of Buffalo Grove. The inclusion of unrestricted
online responses dilutes the effectiveness of the targeted response pool. As an example, if
someone receives an email with a link to the survey that person could then send the link to their
friends, family, and neighbors who can then all fill out the survey. This can result in responses
from individuals who are not a part of the community or slanted responses based on a certain
neighborhoods or groups of people. Utilizing the mail option ensures that the results received
are statistically significant.
Likewise, staff recommends the inclusion of the following add -on options:
Geographic Subgroup Comparison Report
This additional report will provide the board and staff with a geographical break down of the
survey data. This information will provided keen insight in to how various groups feel about
village services.
Custom Benchmark Comparison
The survey data can be benchmarked against communities meeting specific criteria. These
communities can include previous survey participants that are geographically near Buffalo Grove
such as Glenview, Long Grove, Skokie, Vernon Hills, and Highland Park. Likewise, the large
scope of the NCS partnership with the ICMA allows the data to be benchmarked against
communities with similar population nationwide. These communities include Englewood, CO,
Palm Beach Gardens, FL, Holland, MI, Jefferson City, MO, Galveston, TX, and Harrisonburg,
VA.
Next Step Workshop
The National Research Center offers a Next Step Workshop to provide survey participants a
facilitated, in-depth exploration into how to use the survey data in strategic planning. An NRC
representative will come to Buffalo Grove to lead a half -day interactive workshop to assist in
developing strategy and to offer recommendations.
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The Village of Buffalo Grove is entitled to a discounted price for the NCS due to the Village's
membership in ICMA. The "primarily by mail' collection method costs $13,860. The add-ons
recommended by staff have the following prices: Geographic Subgroup Comparison Report:
$810, Custom Benchmark Comparison: $945, and Next Step Workshop: $ 3,915; for a total cost
of $19,530.
If the Village Board wishes to move forward, Staff will budget this item as a part of the 2017
budgeting process. Assuming that the Village is satisfied with the services provided and the end
product, Staff would recommend completing this survey every 3 years to benchmark progress
towards strategic initiatives that may be developed as a result of the survey data.
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2.B
Information Item : Auditor Presentation
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
The auditors will be on site to present the Comprehensive Annual Financial Report and Management
Letter.
ATTACHMENTS:
• 2015 12 31 Village of Buffalo Grove CAFR (PDF)
• Management Responses FY 2015 Audit (PDF)
Trustee Liaison Staff Contact
Johnson Andrew Brown, Finance
Monday, August 1, 2016
Updated: 7/27/2016 10:05 AM Page 1
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COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
VILLAGE OF BUFFALO GROVE, ILLINOIS
As of and for the Year Ended December 31, 2015 0
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Prepared by the Department of Finance and General Services
Scott Anderson
Director of Finance and General Services
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VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS
As of and for the Year Ended December 31, 2015
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal
i - iv
Certificate of Achievement for Excellence in Financial Reporting
v
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Organizational Chart
vi
List of Elected and Appointed Officials
vii
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FINANCIAL SECTION
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INDEPENDENT AUDITORS' REPORT
1-3
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REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis
4 - 18
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
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Statement of Net Position
19 - 20
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Statement of Activities
21 - 22
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Fund Financial Statements
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Balance Sheet - Governmental Funds
23 - 24
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Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
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Net Position
25
Statement of Revenues, Expenditures and Changes in Fund Balances -
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Governmental Funds
26
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Reconciliation of the Statement of Revenues, Expenditures and Changes in
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Fund Balances of Governmental Funds to the Statement of Activities
27
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Statement of Net Position - Proprietary Funds
28 - 31
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Statement of Revenues, Expenses and Changes in Net Position - Proprietary
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Funds
32 - 33
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Statement of Cash Flows - Proprietary Funds
34 - 37
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Statement of Fiduciary Net Position - Fiduciary Funds
38
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
39
Index to Notes to Financial Statements
40
Notes to Financial Statements 41 - 92
REQUIRED SUPPLEMENTARY INFORMATION
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - General 93
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2.B.a
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2015
Page(s)
REQUIRED SUPPLEMENTARY INFORMATION (cont.)
Historical Pension Information
Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net
Pension Liability and Related Ratios 94
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 95
Police Pension Fund - Schedule of Changes in the Village's Net Pension
Liability and Related Ratios 96
Police Pension Fund - Schedule of Employer Contributions 97
Police Pension Fund - Schedule of Investment Returns 98
Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension
Liability and Related Ratios 99
Firefighters' Pension Fund - Schedule of Employer Contributions 100
Firefighters' Pension Fund - Schedule of Investment Returns 101
Other Post Employment Benefits - Schedule of Employer Contributions and Schedule
of Funding Progress 102
Notes to Required Supplementary Information 103
SUPPLEMENTARY INFORMATION
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 104 - 105
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 106
Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual
Motor Fuel Tax - Nonmajor special revenue fund 107
Metra Parking Lot - Nonmajor special revenue fund 108
Debt Service - Nonmajor debt service fund 109
Street Maintenance - Nonmajor capital projects fund 110
Facilities Development - Major capital projects fund ill
Enterprise Funds
Combining Statement of Net Position - Nonmajor Enterprise Funds 112
Combining Statement of Revenue, Expenses and Changes in Fund Net Position -
Nonmajor Enterprise Funds 113
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 114
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VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2015
Page(s)
SUPPLEMENTARY INFORMATION (cont.)
Schedules of Revenues, Expenses and Changes in Fund Net Position - Budget
and Actual - Non-GAAP Budgetary Basis
0
Buffalo Grove Golf - Nonmajor enterprise Fund
115
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Refuse Service - Nonmajor enterprise Fund
116
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Water and Sewerage - Major enterprise Fund
117
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Arboretum Golf - Major enterprise Fund
118
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Combining Statement of Net Position - Internal Services Funds
119
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Combining Statement of Revenues, Expenses and Changes in Fund Net Position -
Internal Service Funds
120
Statement of Revenues, Expenses and Changes in Fund Net Position - Budget and
Actual
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Information Technology - Internal Service Fund
121
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Central Garage - Internal Service Fund
122
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Building Maintenance - Internal Service Fund
123
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Combining Statement of Cash Flows - Internal Service Funds
124
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Combining Statement of Fiduciary Net Position - Pension Trust Funds
125
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Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds
126
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Schedules of Changes in Fiduciary Net Position - Budget and Actual
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Police Pension - Pension Trust Fund
127
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Firefighters' Pension - Pension Trust Fund
128
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Statement of Changes in Fiduciary Assets and Liabilities - School and Park
Donations - Agency Fund
129
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STATISTICAL SECTION
co
Net Position by Component
130 - 131
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Change in Net Position
132 - 135
Fund Balances of Governmental Funds
136 - 137
Change in Fund Balances of Governmental Funds
138 - 139
Assessed and Actual Value of Taxable Property
140 - 141
Property Tax Rates - Direct and Overlapping Governments
142 - 143
Principal Property Taxpayers
144 - 145
Property Tax Levy and Collections
146 - 147
Sales Tax Revenue and Number of Principal Payers - Revenue by Category
148 - 149
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VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2015
STATISTICAL SECTION (cont.)
Direct and Overlapping Sales Tax Rates
Ratio of Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Schedule of Legal Debt Margin
Demographic and Economic Statistics
Principal Village Employers
Full -Time Equivalent Employees
Operating Indicators
Capital Asset Statistics
Page(s)
150
151 - 152
153
154
155
156
157
158 - 159
160 - 161
162 - 163
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VUI,,AA(7x'rij OF
BUFFAID GROVE'
.......... . . . .................... . . . . . . . . . ...... _ . .... . ..........
Department of Finance & General Services
Fifty Raupp Blvd,
Buffalo Grove, It. 60089-2100
Phone 847-459-2500
Fax 847-459-0332
June 29, 2016
The Honorable Beverly Sussman
Members of the Village Board
Citizens of the Village of Buffalo Grove
The Comprehensive Annual Financial Report (CAFR) (if the Village of Buffalo Grove for the year ended S
December 31, 2015 is Submitted herewith. This report represents a comprehensive picture of the Village's .2
financial activities during Fiscal Year 2015 and the financial condition of its various funds at December 31,
2015. State law requires that all general-purpose local governments publish within six months of the close
of each fiscal year a complete set of financial statements presented in conformity with generally accepted
accounting principles (GAAP) and audit in accordance with generally accepted auditing standards by a firm CL
of licensed certified public accountants, 0
Management assumes full responsibility for the completeness and reliability of all of the information
presented in the report based upon a comprehensive internal control framework. Because the cost of
internal controls should not outweigh their benefits, the Village's comprehensive fi-amework of internal
to
controls has been designed to provide reasonable rather than absolute assurance that the financial n
statements will be free from material misstatement. ry,
Baker Tilly, Independent Certified Public Accountants, have issued an unmodified (clean) opinion on the
Village's financial statements for the fiscal year ended December 31, 2015. 'The independent auditors'
report is presented at the front of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of a Management's Discussion and Analysis (MD&A). The letter of
transmittal is designated to complement the MD&A and should be read in conjunction with it. The Village
of Buffalo Grove's MD&A can be found immediately following the report of the independent auditors.
Profile of the Village of Buffalo Grove
The Village of Buffalo Grove was incorporated March 7, 1958, and is located approximately 29 miles
northwest of the downtown of the City of Chicago. The Village resides in both Cook and Lake Counties
and spans 9.2 square miles and, based on the 2010 U.S. Census, serves a population of 41,496. The Village
of Buffalo Grove is empowered to levy a property tax on real property located within its boundaries. It is
also empowered by state statute to extend its corporate limits by annexation, which it has done from time to
time.
The Village became a home rule unit by referendum oil July 1, 1980, giving it additional powers to tax and
regulate in ways riot specifically granted, or prohibited, by the Illinois Constitution. As a home rule entity,
the Village has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the
issuance of debt or to increase property taxes,
The Village operates under a Council/Manager form of government. Policy making and legislative
authority are vested with the Village Board, which consists of a President and a six member Board of
Trustees. The Village Board is responsible, for passing ordinances and resolutions, adopting the annual
budget, appointing committees, and hiring the Village's Manager and Attorney. The Village Manager is
responsible for carrying out the policies, ordinances and resolutions of the Village Board, developing and
presenting an annual budget, overseeing the day-to-day operations of the Village, and appointing
department directors,
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The Village provides a full range of services including, police and fire protection, construction and
maintenance of streets and infrastructure, Village planning and zoning, water and sewer utilities, and
general administrative services. The Village also operates two golf courses and a municipal commuter
parking lot. To provide these services there were 216 full-time and 78 part-time/seasonal positions in the
Fiscal Year 2015 annual budget.
Budgetary Control and Accounting Systems
The annual budget serves as the foundation for the Village's financial planning and as a management
spending control document. All departments of the Village of Buffalo Grove are required to submit budget
requests by a specified date each year. These requests serve as the starting point for budget development.
The proposed budget is presented to the Village Board in November and adopted by resolution in
December with the property tax levy.
Legal spending thresholds are established through an Appropriation Ordinance. The Village Board is
required to hold a public hearing on the Appropriation Ordinance and must adopt a final budget no later
than December 31`t of each year. The appropriated budget is prepared by fund, and department (e.g.,
police). Department directors may make transfers of appropriations within a department. Transfers of
appropriations between fund/account groups, however, require the special approval of the Village Board.
The accounts of the Village are organized on the basis of funds, each of which is considered a separate and
distinct accounting entity. The operations of each fund are accounted for with a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Revenues
are allocated to and accounted for in individual funds based upon the purpose for which they are to be
expended and the means by which spending activities are controlled. The accounting records for general
governmental operations are maintained on the modified accrual basis, with revenues being recorded when
available and measurable and expenditures being recorded when the material or services are received and
the liability is incurred. Accounting records for the Village's enterprise funds, internal service funds,
agency funds and pension trust funds are maintained on the accrual basis of accounting.
Factors Affecting Financial Condition
Local Economy
The Village is primarily residential, with supporting commercial activity and limited industrial and
manufacturing activity. There are approximately 705 licensed business operating in the Village. The
majority of residents are employed in management, professional, sales and office occupations. The
Village's unemployment statistics have consistently beat the national and state averages, with an
unemployment rate at the end of the year at 5.0 percent besting the state by 2.1 percent.
External economic factors at the national and state level continue to impact the Village's revenue profile
and, subsequently its ability to manage operating and capital resources.
• Sales taxes (municipal and home rule) totaled $9,274,777 which is an increase from the previous
year's total of $8,455,972 an increase of 8.5 percent.
• Income and Use Tax increased from $4,104,736 to $5,409,875 or 31.8 percent.
Real estate transfer taxes generated $904,311 in 2015 versus $790,819 in 2014. Sales of
commercial and industrial properties increased considerably in the current fiscal year.
The Village equalized assessed valuation increased by $8 million or .6 percent to $1.43 billion in the 2014
levy year. The increase is due primarily to new properties.
The unassigned fund balance of the General Fund will again exceed the 25 percent threshold of the
subsequent year's budgeted expenditures, less non -operating transfers, which is policy established by the
Village Board.
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2.B.a
Unassigned
Budgeted
Fiscal Year Ended
Fund Balance
Expenditures
Percent
December 31, 2007
$14,991,907
$30,202,380
49.64%
December 31, 2008
$11,587,937
$31,021,971
37.35%
December 31, 2009
$ 9,005,069
$29,418,559
30.61%
December 31, 2010
$ 9,563,655
$29,266,181
32.68%
December 31, 2011
$ 9,872,594
$29,271,054
33.73%
December 31, 2012
$10,302,515
$29,768,828
34.61%
December 31, 2013
$12,395,113
$35,511,109*
34.90%
December 31, 2014
$13,225,644
$37,083,251
35.67%
December 31, 2015
$14,991,907
$38,165,617
39.29%
* Budget number includes employer pension costs beginning in FY 2013.
Long -Term Financial Planning
The Village compiles a Five -Year Financial Forecast annually which provides an analysis of future revenue
and expenditures. This report is completed in tandem with the start of the annual budget process. Other
long-range financial plans include the five-year Capital Improvement Plan, Twenty -Year Water Fund Pro -
Forma, and Reserve for Capital Replacement Funding Report.
The village assesses its capital needs through the Capital Improvement Plan (CIP) update. This document is
a planning tool to identify short and medium term capital needs (facilities, infrastructure and roadways) and
measure those demands against the village's ability to pay. For a project to be incorporated into the CIP, it
must involve the creation, improvement, or acquisition of a tangible asset with an original cost of at least
$25,000.
Within the next five years it is anticipated that the Village will require nearly $42.7 million in capital
improvements. Transportation -related projects represent a large percentage of the improvements at $24.9
million. Routine maintenance of existing streets accounts for $21 million of those projects. Approximately
$13.7 million is allocated to improving and maintaining the water utility system.
The Twenty -Year Water Fund Pro -Forma provides an overview of the Water Fund and adequacy of the
current water rate to fund operating expenses and infrastructure improvements as well as generating a
reserve to continue with a pay-as-you-go approach to capital budgeting. The Reserve for Capital
Replacement Funding Report lists all Village owned vehicles, the service life, and its respective reserve
balance.
Major Initiatives
In 2015, the Village of Buffalo Grove issued over 2,500 commercial and residential building permits.
These permits represent a total project valuation of over $40,000,000 invested into the Buffalo Grove
community. In addition to building permit activity, the following major projects were approved in 2015:
Sky Fitness, a private fitness and recreational facility at 1501 Busch Parkway is adding 19,050 square feet
to their facility.
Hamilton Partners is building the next and final phase of the Chevy Chase Business Park at 1050 Johnson
Drive. This phase includes the development of a new multi -tenant, one-story 66,526 square foot warehouse
and office facility.
Flextronics recently opened a new facility at 700-800 Corporate Grove Drive in Buffalo Grove.
Representatives have stated they are in the process of investing over $100 million in their Buffalo Grove
facilities and have hired 300 employees.
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Flextronics recently opened a new facility at 700-800 Corporate Grove Drive in Buffalo Grove.
Representatives have stated they are in the process of investing over $100 million in their Buffalo Grove
facilities and have hired 300 employees.
In 2015, 77 businesses opened, expanded and/or relocated in the Village of Buffalo Grove.
Developed and completed the Village's first Economic Development Strategic Plan.
The Village outsourced maintenance operations at both the Arboretum and Buffalo Grove Golf Course
resulting in significant savings on course maintenance costs.
Awards and acknowledgments.
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Village of Buffalo Grove for its comprehensive annual financial
report (CAFR) for the fiscal year ended December 31, 2015. This was the thirty-third consecutive year that
the government has received this prestigious award. In order to be awarded a Certificate of Achievement,
the government published an easily readable and efficiently organized CAFR. This report satisfies both
GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAER
continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
In addition, the Village also received the GFOA's Distinguished Budget Presentation Award for its annual
budget document for the fiscal year beginning January 1, 2015. In order to qualify for the Distinguished
Budget Presentation Award, the Village's budget document had to be judged proficient as a policy
document, a financial plan, an operations guide, and a communications device.
The preparation of this report would not have been possible without the dedicated services of the entire
staff of the Finance Department especially Deputy Finance Director Andrew Brown. Credit also must be
given to the Village President and Board of Trustees, and the Village Manager Dane Bragg for their
assistance in planning and conducting the fiscal affairs of the Village in a responsible manner.
Respectfully submitted,
e>Scott Anderson
Director of Finance/Village Treasurer
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2.B.a
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Buffalo Grove
Illinois
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2014
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Executive Director/CEO
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2.B.a
Organizational Chart
Residents of Buffalo
Grove
Community
Police
Fire
Development
Department
Department
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Building and
Emergency
Patrol
Management
Zoning
;
� Services
Enviromental
Investigations
Fire
Suppression
Health
Youth Services
and Rescue
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Planning and
Fire
Economic
Admin
Prevention
Development
&Education
Police
Emergnecy
Records
Management
Agency
Village
Boa rd
Village
Manager
N, i
Office of the
Village
Manager
Legal
Finance
General
Services
Human Deputy
Resources Village Clerk
Golf Village
Operations Treasurer
Information " Procurement
Technology
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Public
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Works
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Admin and
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Building
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Maintenance
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Operation
Central
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
List of Elected and Appointed Officials
December 31, 2015
Beverly Sussman
Village President
Jeffrey Berman
Joann Johnson
Lester Ottenheimer
Jennifer Maltas
Deputy Village Manager
Steven Casstevens
Chief of Police
Michael Reynolds
Public Works Director
Darren Monico
Village Engineer
Geoff Tollefson
Golf Course Manager
Board of Trustees
Appointed Officials
Dane Bragg
Village Manager
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Janet M. Sirabian
Village Clerk
Andrew Stein
Steven Trilling
David Weidenfeld
Scott Anderson
Finance Director/Village
Treasurer
Mike Baker
Fire Chief
Arthur Malinowski
Human Resource Director
Christopher Stilling
Director of Community
Development
Brian Sheehan
Building Commissioner
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Tothe Village President and Board ofTrustees
Village ofBuffalo Grove
Buffalo Grove, Illinois
Report onthe Financial Statements
VVehave audited the accompanying finencia|etatament ofthe governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo Grove,
Illinois, as of and for the year ended December 31, 2015, and the related notes to the financial statements,
which collectively comprise the Village of Buffalo Grove's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, imp|emenbation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstotement, whether due tofraud or error.
Auditors'Rmsponsibility
Our responsibility is to express opinions on these financial statements based on our audit. VVedid not audit the
financial statements of the investment in joint venture, which represent 13.61 percent and 14.QGpercent,
respectively, of the assets and net position of the business -type activities and 16.76 percent and 18.68 percent,
respectively, of the assets and net position of the Water and Sewerage Fund, Those statements were audited
by other auditors whose report has been furnished to us, and our opinion, insofar as it relates tothe amounts
included for investment in joint venture, in based solely on the report of the other auditors. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditona']udgment' including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the Village of Buffalo Grove's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the effectiveness of the Village of Buffalo
Grove's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made
by management, as well as evaluating the overall presentation of the financial statements.
INTERNATIONAL I Packet Pg. 19
Tothe Village President and Board ofTrustees
Village of Buffalo Grove
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo
Grove, Illinois, as of December 31, 2015 and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States ofAmerica.
Emphasis of Metter
As discussed in Note |. the Village of Buffalo Grove adopted the provisions ofG/\SB Statement No. 68,
Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27and GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an 5
�
amendment of GASB Statement No. 68, effective January 1, 2015. Net position as of January 1, 2015 has been ..
restated as result. Our opinions are not modified with respect to this matter.
�
Other Matters _^
Required Supplementary Information
Accounting principles generally accepted inthe United States ofAmerica require that the required
supplementary information as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion
nrprovide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Buffalo Grove's basic financial statements. The supplementary information as listed in
the table of contents is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all
material nespects, in relation to the basic financial statements as avvho|n.
2.B.a
To the Village President and Board of Trustees
Village of Buffalo Grove
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Buffalo Grove's basic financial statements. The introductory section and statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information has not been subjected to the auditing procedures applied in the audit of the
basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
galtz, 7-4
Oak Brook, Illinois
June 29, 2016
Page 3
Packet Pg. 21
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
The Village of Buffalo Grove's Management's Discussion and Analysis (MD&A) offers the readers of the Village of
Buffalo Grove's financial statements this narrative overview and analysis of the financial activities of the Village of
Buffalo Grove for the fiscal year ended December 31, 2015. This information presented here should be considered in
conjunction with additional information provided in the letter of transmittal, which is found on pages i-iv.
Financial Highlights o
• The assets and deferred outflows of the Village exceeded its liabilities and deferred inflows at December 31,
o
2015 by $64.1 million (net position). The Net Position for governmental activities is $17.9 million or 28.0
percent of the total and business -type activities account for $46.2 million. Of this amount, $(26.8) million is
unrestricted, the negative amount of unrestricted assets is directly related to the recognition of all the
a
Villages pension obligations as noncurrent liabilities, which increased from $13.1 million in 2014 to $70.6
0
million in 2015.
a
• The Village's net position decreased by $47.2 million (or 42.4 percent) during the fiscal year ending
December 31, 2015. The governmental net position decreased by $46.5 million (72.2 percent) and the
business -type activities net position decreased by $0.7 million (1.5 percent).
As of December 31, 2015, the Village of Buffalo Grove's general fund reported combined ending fund
balances of $23.3 million, an increase of $ 1.9 million from the prior year. Of this amount, $15.0 million was
unassigned.
• The Village's total debt decreased by $0.5 million (or 5 percent). Total debt outstanding is $10.0 million
Overview of the Financial Statements
The MD&A is intended to serve as an introduction to the Village's basic financial statements. The Village of Buffalo
Grove's basic financial statements are comprised of three components: 1) government -wide financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements.
Government -wide financial statements
The government -wide financial statements (found on pages 19-22) are designed to provide readers with a broad
overview of the Village's finances statements similar to the corporate sector in that all governmental and business -
type activities are consolidated into columns that add to total for the Primary Government.
The statement of net position presents information on all the Village's assets and deferred outflows and liabilities and
deferred inflows, with the difference between the two reported as net position. Changing of the net position total over
time can be one useful indicator in assessing the financial position of the Village. This statement combines and
consolidates governmental funds' current financial resources (short-term spendable resources) with capital assets
and long-term obligations using the accrual basis of accounting and economic resources measurement focus.
The statement of activities presents information showing how the government's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event causing the change
occurs, regardless of the timing of related cash flows. Revenues and expenses are reported in this statement for
some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes).
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
Both of the government -wide financial statements distinguish functions of the Village that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business -type activities). The governmental
activities of the Village include public safety (police and fire), public works, streets and sidewalks, building and
zoning, and general government. Property taxes, state and home rule sales tax, shared state income tax, real estate
transfer tax, prepared food and beverage tax, and utility taxes finance the majority of these services. The Business -
type Activities reflect private sector type operations and include Water and Sewer Funds, Refuse Fund, Buffalo
Grove Golf Course and Arboretum Golf Course. The intent is for the fees to cover the costs of operations,
infrastructure replacement, and debt services expenses.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The Village uses fund accounting to ensure and demonstrate fiscal accountability
and legal compliance. All of the funds of the Village can be divided into three categories; governmental funds,
proprietary funds, and fiduciary funds.
Governmental Funds (see pages 23-27) are used to account for primarily the same functions reported as
governmental activities in the government -wide financial statements. The focus, unlike the government -wide financial
statement, is on the sources and uses of available resources (cash and cash equivalents), in order to provide a near,
or short-term view of the Village's operations. This information is useful in the evaluation of short-term financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand the
long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Village of Buffalo Grove maintains six individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in
fund balances for the General and Facilities Development Funds, which are classified as major funds. Data on the
other four governmental funds are combined into a single, aggregated presentation. Individual fund data for each of
these non -major governmental funds is provided in the form of combining statements elsewhere in the report.
Proprietary Funds (see pages 28-37) are used to report the same functions presented as business -type activities in
the government -wide financial statements. The Village uses enterprise funds to account for its water and sewer
utility, refuse service, and activities at the Buffalo Grove and Arboretum Golf Courses. Proprietary funds provide the
same type of information as the government -wide financial statements, only in more detail. The proprietary fund
financial statements provide separate information for the Water and Sewerage Fund and the Arboretum Golf Fund as
they are considered to be major funds. The basic proprietary fund financial statements can be found on pages 28-37
of this report.
Fiduciary Funds (see pages 38-39) are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of
those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 38-39 of this
report. Notes to the financial statement provide additional information that is essential to a full understanding of the
data provided in the government -wide and fund financial statements. The notes to the financial statements can be
found on pages 40-92 of this report.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the budgetary comparison to actual for the general fund, as
well as the Village's progress in funding its obligation to provide pension and OPEB benefits to its employees.
Required supplementary information can be found on pages 93-103 of this report.
Government -wide Financial Analysis
The assets and deferred outflows of the Village of Buffalo Grove exceeded liabilities and deferred inflows by $64.1
million as of December 31, 2015. The largest portion of the Village's net position reflects its investment in capital
assets (138.8 percent). Those capital assets include land, buildings, streets, utility infrastructure, and equipment, less
any outstanding debt related to the original acquisition. The Village uses these capital assets to help facilitate service
delivery to its residents; consequently, these assets are not available for future spending. Although the Village's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay
the debt must be provided from other sources, since the capital assets cannot be used to reduce these liabilities.
An additional portion of the Village's net position ($1.9 million) represents resources that are subject to external
restrictions on how they may be used. $1.8 million is restricted for contractual construction obligations including the
street project that was debt financed. The remaining balance of unrestricted net position ($(26.8) million) reduces
total net position significantly due to GASB 67 and 68, which requires the Village to show the outstanding pension
obligations in noncurrent liabilities. The total decrease in unrestricted net position from the prior year is 49.0 million
(222.7 percent).
The Village's combined net position decreased by $47.2 million as a result of governmental activities decreasing by
$46.5 million and business -type activities decreasing by $0.7 million. The net position of the Village's governmental
fund was $17.9 million. The Village's unrestricted net position for governmental activities that are available for day-to-
day financial operations were $(34.6) million compared to $11.0 million at December 31, 2014. The net position of
business -type activities was $46.2 million. The business type activities unrestricted net position decreased by $3.2
million from the previous year.
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
Please refer to table below for condensed Statement of Net Position:
Table 1
Village of Buffalo Grove's Net Position
As of December 31, 2015
(in millions)
Governmental Business -Type
Activities Activities Total
2015
2014*
2015
2014*
2015
2014*
Current and Other Assets
$42.8
$43.7
$10.8
$12.6
$53.6
$56.3
Capital Assets
54.6
55.3
39.9
36.3
94.5
91.6
Total Assets
$97.4
$99.0
$50.7
$48.9
$148.1
$147.9
Deferred Outflows
12.7
0.1
0.5
0.0
13.2
0.1
Long -Term Liabilities
67.9
12.5
2.7
0.6
$70.6
$13.1
Other Liabilities
6.6
7.5
2.2
1.4
8.8
8.9
Total Liabilities
$74.5
$20.0
$4.9
$2.0
$79.4
$22.0
Deferred Inflows
17.7
14.7
0.1
0.0
17.8
14.7
Net Position:
Net Investment in Capital Assets
$50.6
$50.7
$38.4
$35.9
$89.0
$86.6
Restricted
1.9
2.7
0.0
0.0
1.9
2.7
Unrestricted
(34.6)
11.0
7.8
11.0
(26.8)
22.0
Total Net Position
$17.9
$64.4
$46.2
$46.9
$64.1
$111.3
*Prior year information has not been updated for the effects of restatement due
to the implementation of GASB statement No. 68
and No. 71 in 2015.
Normal Impacts
There are five basic (normal) transactions that will
affect the comparability
of the Statement of Net Position summary
presentation.
Net Results of Activities - which will impact (increase/decrease)
current
assets and
unrestricted
net position.
Borrowing of Capital- which will increase current assets
and long
term debt.
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
Spending Borrowed Proceeds on New Capital — which will reduce current assets and increase capital assets. There
is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change
the net investment in capital assets.
Reduction of Capital Assets through Depreciation — which will reduce capital assets and net investment in capital
assets.
Current Year Impacts
At the end of the current fiscal year, the Village reported positive balances in all three categories of net position, both
for the government as a whole, as well as for its separate governmental and business -type activities.
Within the governmental activities, the Village decrease in "Current and Other Assets" of $0.9 million is attributed to
the elimination of the net pension asset line item ($0.6 million in 2014). The Village experienced an increase in
receivables for taxes of 0.7 million in 2015 (3.8 percent). Due to the current uncertainty of the State of Illinois and
lack of an operating budget the Village of Buffalo Grove took a more liquid approach to its investment strategy as the
State of Illinois withheld and delayed many tax revenues from the Local Government Distributive Fund. This strategy
is reflected in the shift downward in investments and increase in cash and equivalents. The Village continued to
receive funding for capital improvements from the State of Illinois Department of Commerce and Economic
Opportunity. These funds are designated for street and bridge improvements. The excess receivable for water and
sewer accounts, $0.14 million (10 percent), was derived from an increase in the rates for those services.
The Village has adopted a philosophy of funding capital improvements to a large extent on a pay -as -you —go basis,
and retires debt obligations quickly, resulting in positive net position calculations. Declines in "Capital Assets" are
primarily as a result of depreciation.
Changes in Net Position.
The Village's total revenues and expenses for governmental and business -type activities are reflected in the following
chart:
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2.B.a
Revenues
Village of Buffalo Grove Changes in Net Position
For the Years Ended December 31, 2015 and 2014
Governmental Business -Type Total Primary
Activities Activities Government
2015 2014* 2015 2014* 2015 2014*
Program Revenues
Charges for Service
3.4
3.6
12.9
12.4
16.3
16.0
Grants and Contributions
Operating
1.2
1.3
-
-
1.2
1.3
Capital
-
-
-
-
General Revenue
Property Tax
14.7
14.6
14.7
14.6
Sales and Use Tax
9.3
8.5
9.3
8.5
Income Tax
5.4
4.1
5.4
4.1
Telecommunications Tax
1.6
1.7
1.6
1.7
Utility Taxes
2.6
2.8
2.6
2.8
Property Transfer Tax
0.9
0.8
-
0.9
0.8
Other
2.7
2.6
-
0.5
2.7
3.1
Total Revenue
41.8
40.0
12.9
12.9
54.7
52.9
Expenses
Governmental Activities
General Government
5.9
5.8
5.9
5.8
Public Safety
27.2
22.9
27.2
22.9
Public Works
11.6
13.6
11.6
13.6
Interest
0.3
0.3
0.3
0.3
Business Type
Water and Sewer
8.5
8.4
8.5
8.4
Refuse Services
0.7
0.8
0.7
0.8
Golf
3.3
2.8
3.3
2.8
Total Expenses
45.0
42.6
12.5
12.0
57.5
54.6
Excess before transfers and special items
(3.2)
(2.6)
0.4
0.9
(2.8)
(1.7)
Transfers In (Out)
0.8
1.1
(0.8)
(1.1)
Special items
Change in Net Position
(2.4)
(1.5)
(0.4)
(0.2)
(2.8)
(1.7)
Net position - beginning (as restated)
20.3
65.9
46.6
47.1
66.9
113.0
Net position - ending
17.9
64.4
46.2
46.9
64.1
111.3
*Prior year information has not been updated for the effects of restatement
due to the implementation of GASB
Statement No. 68 and
No. 71 in 2015.
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
Normal Impacts
Revenues
Economic Condition — which can reflect a declining, stable or growing economic environment and has a substantial
impact on property, sales, income, utility tax revenues as well as public spending habits for building permits, elective
user fees and volumes of consumption
Increase/Decrease in the Village Approved Rates — while certain tax rates are set by statute, the Village has
significant authority to impose and periodically increase/decrease rates (water, building and licensing fees,
ambulance fee, etc.)
Changing patterns in Intergovernmental and Grant Revenue — (both recurring and non -recurring) — certain recurring
revenue (state shared revenues) may experience significant changes periodically while non -recurring (one-time)
grants are less predictable and often distorting in their impact on year-to-year comparisons.
Market Impact on Investment Income — the Village's investment portfolio is structured to meet certain liabilities as
they become due and the income generated is subject to market conditions that may cause the investment income to
fluctuate.
Expenses
Changes in Authorized Personnel — changes in service demand may cause the Village to increase/decrease
authorized staffing.
Salary Increase (general wage adjustments and merit) — compensation adjustments to ensure the Village is able to
attract and retain high level employees.
Inflation — while overall inflation appears to be reasonably modest, the Village is a major consumer of certain
commodities such as supplies, fuels, and parts. Some functions may experience unusual commodity -specific
increases (e.g. fuel, road salt)
Current Year Impacts
Government Activities:
Governmental activities decreased the Village's net position by $46.5 million to $17.9 million. Significant elements
contributing to this net change are as follows;
Revenues:
Revenues for the Village's governmental activities for the year ended December 31, 2015 were $41.8 million an
increase of $1.8 million or 4.5 percent. Property taxes continue to be the Village's largest source of revenue (35.2
percent) at $14.7 million. Included within the property tax revenues are the pension levies for the Police and
Firefighter Pension Funds and IMRF/Social Security Levies. The pension levies account for 40.5 percent of the
property tax levy. Other taxes and intergovernmental revenue including sales tax, state income tax, utility tax,
prepared food and beverage tax, hotel tax, and real estate transfer tax total $19.8 million or 47.6 percent of total
governmental activities revenue.
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis(Unaudited)
December 31, 2015
Village of Buffalo Grove 2015 Revenue by Source
Governmental Activities
Charges for Service
c
IIIIIII Grants and Contributions
o
�a
IM Property Tax
c
d
IIIIIII Sales and Use Tax
d
L
a
IIIIIIIIIII Income Tax
c
11 Telecommunications Tax
Q
111111 Utility Tax
1111111 Property Transfer Tax
Property taxes increased by $0.48 million. The increase in the corporate agency tax levy collected in 2015 was 4.0
percent. The corporate levy for 2015 is funding Police and Fire Protection. The Police Protection levy increased
$2.7 million (465.2 percent) and the Fire Protection Levy increased $1.2 million (28.9 percent). The total tax levy
increased 3.2 percent in total with decreases in the IMRF and Social Security levies of 2.3 percent. The pensions
levy increased 8.1 percent.
Sales tax increased by $0.82 million compared to the previous year. The growth in sales tax was 9.6 percent. Utility
taxes are down $.18 million, or 6.2 percent. The region experienced a moderate winter, leading to less natural gas
consumption than average. Income taxes have begun to rebound increasing $1.3 million from FY 2014, a 31.7
percent jump. Property transfer taxes continue to trend upward with an increase of $0.1 million. Income tax, sales
tax, and property transfer tax are key indicators for the Village of Buffalo Grove's local economy and are improving
year. over year.
Expenses:
The cost of all governmental activities this year was $45.0 million resulting in an increase of 5.6 percent from the
previous year ($42.6 million). The largest reduction was made in the Public Works reducing expenditures $2.0
million in 2015. Public Safetv expenditures arew by $4.3 million (18.8 percent) for a total of $27.2 million dollars.
Village of Buffalo Grove 2015 Expenditure by Function
Gvernmental Activities
0.7%
1:11%
IIIIIIIIIII General Government
IIIIIIIIIII Public Safety
iiiiiii Public Works
IIIIIIIIIII Interest
Packet Pg. 29
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
The Statement of Activities on pages 21-22 shows that $3.4 million in revenue was generated to finance for the
services rendered by those who use them. Another $1.2 million in revenue that finances, by operating and capital
grants and contributions, capital expenditures incurred, are essentially subsidies for capital improvement that is
needed or would be required overtime.
Business -Type Activities:
Business -type activities net position decreased by $0.4 million. Significant changes are noted below.
Revenue:
Water sales increased $.5 million from the previous year. The average amount of water consumed in 2014 was
about 6,062 gallons per month per residential household. The increase in revenue was driven by a 4 percent water
rate increase. Average water consumption continues to be at historic lows due to maturing landscapes, more efficient
appliances, vacant properties, and resource conservation. The two golf courses generated $2.4 million in 2015,
which is consistent with the 2014 revenue earnings. The following graph shows a comparison of revenues and
expenses for each business type activity (less depreciation and operating transfers).
10
Village of Buffalo Grove 2015
Business -Type Activities
Revenues and Expenses (in millions)
Water Fund Refuse Fund Arboretum Golf Buffalo Grove
Golf
Revenue
Expenditure
Expenses:
Expenses from all business -type activities increased by $0.5 million or 4.2 percent. The Water Fund expenses
increased by $0.1 million due to capital maintenance. Golf expenses increased by $0.5 million due to internal service
fund and capital reserve contribution increases.
Financial Analysis of the Village's Funds
As noted earlier the Village utilizes fund accounting to ensure and demonstrate compliance with finance related legal
requirements.
Governmental Funds
The focus of the Village's governmental funds is to provide information on near -term inflows, outflows, and balances
of spendable resources.
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2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
The Village's governmental funds for the year ended December 31, 2015 reflect a combined fund balance of $21.6
million on its balance sheet (pages 23-24). This represents a $0.6 million dollar increase over the balance posted
last year. The Village grew revenues to match inflation and insurance cost, which continue to be the driving force
behind the increase in expenditures on an annual basis. Of the total fund balance of $21.6 million, $11.3 million is
unassigned indicating availability for future obligations.
The 2015 unassigned fund balance increased by $0.4 million. The largest contributing factor is due to a decrease in
total liabilities for the general fund of over $2.2 million (55 percent). Nonspendable fund balance ($.55 million)
represents amounts set aside for inventory and deposits. Restricted fund balance ($2.2 million) is allocated to capital
projects and employee pension benefits. Committed fund balance ($7.5 million) is to be use for future capital
replacement.
The General Fund is the Village's main operating fund and accounts for core municipal services including, public
safety (police and fire), public works, building and zoning, and general administration. As such, it useful to review the
liquidity of the fund by comparing the unassigned fund balance against the operating General Fund operating budget.
As of December 31, 2015, the unassigned fund balance represents 38.4 percent of the FY 2016 operating budget
(less transfers). The Fund Balance of the General Fund increased by $1.9 million from December 31, 2015. A
majority of the growth was generated through budget management.
16
14
12
10
8
6
4
2
0
Village of Buffalo Grove 2015 General Fund Revenue (in millions)
+
O�ret
2015
2014
The General Fund's revenues increased by $1.6 million in 2015. Sales and income tax both rebounded during the
fiscal year, with a positive outlook for FY 2016. The housing market continued its recover in 2015 as revenue
continues the uptick for the third consecutive year. Property taxes increased $1.5 million, while Miscellaneous
Income regressed $.3 million. Other Taxes grew $.15 million and charges for service went down 3.0 percent.
Interest Income dropped 76.6 percent in 2015 due to the uncertainty with the state of Illinois and its budget situation.
It was in the Villages best interest to take a more liquid position not knowing if disbursements would be held or
distributed throughout 2015. Fines and Fees and Licensing and Permits both increased in 2015 from the previous
year actuals. The overall growth in the General Fund of 4.3 percent is a positive indicator that the Village has been
able to generate adequate revenues. The under performing revenues also give the Village an opportunity to re-
evaluate those sources if there is a trend emerging or if it was related to a short term aberration.
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Packet Pg. 31
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
30
25
20
15
10
Village of Buffalo Grove 2015 General Fund Expenditures
(in millions)
General Governemnt Public Safety Public Works
General fund expenditures decreased by $.4 million or 1.11 percent. The surplus of revenues over expenditures was
$3.5 million. Adding in the Other Financing Sources (Uses), the net change to fund balance resulted in an increase of
$1.9 million. Public Safety Expenditures increased $2.5 million, 11 percent, in FY 2015. Public Works and General
Government were able to reduce their expenditures $2.5 million and $0.4 million respectively.
Special Revenue Funds have a combined fund balance of $1.8 million as of December 31, 2015 up $0.1 million from
December 31, 2014. In 2014 the Village continued its initiative to improve local roadways by resurfacing streets,
repairing bridges, and maintaining street, curb and gutter as needed. These projects were funded through Motor Fuel
Tax (MFT) funds, the Capital Projects Street Maintenance fund, and grant revenues in 2015. The Village historically
contributes .20 percent of home rule sales tax revenue to the MFT Fund. Revenues received from the state share of
the motor fuel tax were $1.01 million. The cost of the 2015 street maintenance program was $1.9 million. The scope
of each year's identified maintenance, as determined through pavement analysis studies, has surpassed the
relatively inelastic source of funding (more specifically the Motor Fuel Tax allotments). Given both the rise in the cost
of maintenance and the declining revenue, the amount of street surface area repaired each year will decline. The
intention of the debt issuance was to catch up with maintenance in order to maintain appropriate pavement standards
and try to complete all repairs before road resurfacing turns into a compete rebuild of the pavement. The Street
Maintenance Fund expended $0.08 million and the Village had access to $1.01 million in grant funds. Some street
projects tied to Grant funding are not complete as of December 31, 2015, the remainder will be expended in FY
2016. The Village continues to make streets a priority spending over the annual allotment for MFT by transferring
general fund revenues to funds that build and improve roadway infrastructure.
The Debt Service Fund has a fund balance of $0 at the end of FY 2015 an increase of over $25,486 from the
previous year. The Village Debt totals $10.0 million and are all general obligation bonds, $.51 million in principal was
retired in the current year. The interest paid associated with the debt retired was $296,747. Debt per capita is
$241.91 as of December 31, 2015. The Village has the fourth lowest total outstanding debt amongst all the taxing
bodies represented on the 2015 Lake and/or Cook County property tax bill.
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Packet Pg. 32
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
The Village's Capital Improvement plan continued in 2015. The Village expended over $2.7 million to the Facilities
Development fund infrastructure in FY 2015. The Water and Sewer funds added $1.2 million in Capital Assets and
an additional $4.0 million in process. Vehicles and Equipment decreased $1.1 million over FY 2015 due to disposals
and asset retirements.
Proprietary Funds o
The Village of Buffalo Grove's proprietary funds provide the same type of information found in the government -wide
financial statements, but in more detail.
d
The Village reports the both the Water and Sewer Fund and the Arboretum Golf Course as major proprietary funds.
a
The Water and Sewer Fund accounts for all operating expenses of the municipal water system. Water is purchased
o
wholesale from the City of Evanston through the Northwest Water Commission of which the Village is one of four
members. Sanitary sewer service is provided by the Lake County Public Works Department for those property
a
owners in Lake County. The Village acts as a billing partner to reduce administrative costs. The Metropolitan Water
qe
Reclamation District of Greater Chicago handles all the sanitary sewer treatment for Cook County residents and
recovers its expenses through a property tax levy.
The water and sewer utility experienced net operating income before contributions and transfers of $0.95 million for
FY 2015, which is 17.4 percent of revenue generated entity wide. A rate increase of 4 percent was applied to all
usage after January 1, 2015. Sewer operations accounted for 44.2 percent, or $3.8 million of the total Water and
Sewer operational expenditures. Water operations accounted for less than half of that at $1.9 million (22 percent).
Purchased water expense was $1.7 million, and sanitary sewer fees collected on behalf of Lake County Public Works
was $3 million for FY 2015. These two pass through expenditures account for 54.7 percent of the total operating
expense of the fund. Purchased water expense increased over $3,000 from the prior year.
Non -operating revenue (expense) decreased $8,708 due to a reduction in the amount of assets invested in the
market.
The unrestricted net position of the Water and Sewer Fund at the end of the current fiscal year was $6.93 million. Of
that amount $6.90 million is the Village's equity interest in the Northwest Water Commission and $0.4 million is
available to cash finance any major infrastructure improvements or enhancements to the water system.
The Village also reported the Arboretum Golf Course Fund as a major proprietary fund. This fund accounts for all
operations of the Arboretum Golf Course. The course reported a year end unrestricted net position deficit balance of
$70,545. Total revenues were $50,000 more than the previous year. The Village of Buffalo Grove owns and operates
two municipal golf courses. Golf rounds are returning to pre -recession levels. A total of 68,602 paid rounds were
played between the two courses.
General Fund Budgetary Highlights
The budget is formally presented to the Village Board in November and approved in December in conjunction with
the tax levy request. As the Village operates under the Appropriations Act, a public hearing is conducted after the
budget is adopted for public comment on the Appropriations Ordinance. The Ordinance sets the legal spending
ceiling for each fund. The budget is the day-to-day management tool to ensure fiscal accountability.
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Packet Pg. 33
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
General Fund Budgetary Highlights
For the Fiscal Year Ended December 31, 2015
(in thousands)
Budget Actual
Revenues and Transfers:
Taxes 33,956 35,085
Fines and Fees 2,480 3,079
Licenses and permits 292 350
Other Revenues 1,458 1,431
Transfers in 853 1,120
Total Revenues and Transfers 39,039 41,065
Expenditures and Transfers
Expenditures 38,001 36,460
Transfers Out 1,026 2,674
Total expenditures and Transfers 39,027 39,134
Change in fund balance 12 1,931
Revenue (taxes) performed better than expected due to strong sales and income tax revenue. Actual expenditures
exceeded budgeted expenditures due to unexpected, or scope modifications, of capital improvements.
Capital Assets
At the end of December 31, 2015, the Village had a combined total of capital assets of $94.6 million invested in a
broad range of capital assets including, buildings, streets, storm sewers, and equipment. This amount represents a
net increase (including additions and deductions) of $3.08 million.
Village of Buffalo Grove Capital Assets at Year End
Net of Depreciation
As of December 31, 2015 (in millions)
Governmental Business -Type
Activities Activities Total
2015 2014 2015 2014 2015 2014
Land
35.96
35.96
6.2
6.2
42.16
42.16
Construction in progress
.76
.47
4.12
-
4.88
.47
Land Improvements
2.17
2.90
2.17
2.90
Buildings
2.70
2.78
2.12
2.66
4.82
5.44
Equipment and Vehicles
3.54
3.55
3.54
3.55
Streets and storm sewers
9.52
9.59
9.52
9.59
Water and Sewer Infrastructure
27.51
27.41
27.51
27.41
Total
54.65
55.25
39.95
36.27
94.60
91.52
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Packet Pg. 34
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
The Governmental Activities net capital assets decreased from last year by $0.6 million (1.09 percent). For the
Business -type activities, the net capital assets increased by $3.68 million or (10.15 percent).
The most significant capital activity was the start of the Water Meter Replacement Program in the Water Fund. The
Village is replacing all water meters throughout the Village. The change will also allow the Village to replace the o
touch read system, with communication device that will allow each meter to be read from one location. This
decreases expenses operating expenses while increasing efficiency.
d
Detailed information on the Village's capital assets is included in Note 3 section C on pages 61-62 .
a
L
At year end, the Village had total bonded debt outstanding of $10.0 million as shown in the next table:
Q
Village of Buffalo Grove General Obligation Bonds
As of December 31, 2015 and 2014
`fl
(in millions)
Q
U
d
Governmental Business -Type
o
Activities Activities Total
0
0
2015 2014 2015 2014 2015 2014
w
General obligation bonds
Long -Term Debt
$10.04 $10.55 $
$10.04 $10.55
The Village maintains assigned "AAA" ratings on its general obligation bonds respectively from both Moody's Investor
Services and Standard and Poor's Corporation.
The total per capita general obligation (GO) debt for the community stands at $241.91 and represents .67 percent of
the percentage of equalized assessed valuation of the Village.
The Village, under its home rule authority, does not have a legal debt limit.
Detailed information on the Village's long-term debt can be found in note 3 section F on pages 65-68.
Economic Factors and Next Year's Budgets and Rates
The Village entered 2016 with a balanced operating budget. The budget for the fiscal year beginning January 1,
2016, is $74,908,609 a 4.9 percent decrease from the previous year. The operating budget totals $41,670,875
resulting in a 3.2 percent increase over the previous year. Total capital spending during the year is estimated to be
$10.8 million. Continued emphasis will remain on developing innovative ways to deliver services and reduce costs
while actively working to improve sales tax collections through economic development.
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Packet Pg. 35
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management's Discussion and Analysis (Unaudited)
December 31, 2015
Property taxes remain the Village's most stable revenue although the total assessed value of all taxable property is
expected to increase about .9 percent for the 2015 tax levy (extended and collected in 2016). A tax levy was adopted
for the 2016 budget that was 3.2 percent over the last year's request. Half of the growth in the levy is due to match
inflation. Other tax revenues, including municipal and home -rule sales tax are expected to increase due also to
inflation. Much of the sales taxes are generate through restaurants, grocery stores, and building material sales.
Income taxes are expected to increase by 3 percent. o
co
A twenty year proforma was completed on the Water Fund in FY 2015 and subsequently a water and sewer rate
recommendation was made, and adopted, that will increase water rates by 4 percent in 2015.
L
a
A Storm Water Management User Fee was introduced in the FY 2016 budget. This new user fees will offset the costs o
related to maintaining, repairing and developing an infrastructure reserve for future system needs. The new revenue 3
will result in an additional $1.2 million to the General Fund. a
It
Budgeted expenditures include general wage adjustment for non -represented employees and contractual salary
adjustments which are part of labor agreements. The Village current has two represented employee groups (police
and fire).
Health insurance increases were minimized through the change to the Intergovernmental Professional Benefits
Cooperative (IPBC). All other expenditures will be generally unchanged. There is no additional staffing recommended
for FY 2016.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview
of the Village's finances and to demonstrate the Village's accountability for the money it receives. Questions
concerning this report or requests for additional financial information should be directed to Scott Anderson, Director
of Finance, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089.
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Packet Pg. 36
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
As of December 31, 2015
ASSETS
Cash and equivalents
Investments
Receivables
Property taxes
Accounts - water and sewer
Municipal sales tax
Illinois income tax
Motor fuel tax
Telecommunications tax
Food and beverage tax
Utility tax
Interest
Other
Inventories
Due from fiduciary funds
Other
Deposits
Investment in joint venture
Internal balances
Capital Assets
Land
Construction in progress
Buildings
Land improvements
Equipment and vehicles
Streets and storm sewers
Water and sewer system infrastructure
Less: Accumulated depreciation
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Deferred outflows of resources related to pensions
Total Deferred Outflows of Resources
LIABILITIES
Accounts payable
Accrued wages
State withholding taxes payable
Development deposits
Due to fiduciary funds
Short term notes payable
Other
Noncurrent Liabilities
Due within one year
Due in more than one year
Total Liabilities
Governmental Business -type
Activities Activities Totals
$ 19,433,252 $ 1,387,322 $ 20,820,574
1,845,049 500,280 2,345,329
15,192,849
-
15,192,849
-
1,522,482
1,522,482
2,787,581
-
2,787,581
1,181,466
-
1,181,466
93,652
-
93,652
437,785
-
437,785
76,700
-
76,700
228,040
-
228,040
7,782
312
8,094
414,460
246,015
660,475
79,667
33,318
112,985
84,936
-
84,936
435,675
-
435,675
471,575
173,426
645,001
-
6,904,375
6,904,375
(17,082)
17,082
-
35,963,844
6,198,514
42,162,358
761,660
4,118,394
4,880,054
23,210,214
10,284,359
33,494,573
3,242,060
1,966,488
5,208,548
11,884,949
94,510
11,979,459
57,385,410
-
57,385,410
-
62,106,468
62,106,468
(77,798,717)
(44,818,704)
'122,617,421)
97,402,807
50,734,641
148,137,448
64,497
-
64,497
12,669,741
494,850
13,164,591
12,734,238
494,850
13,229,088
1,938,021
293,944
17,386
309,572
36,166
3,400,000
614,910
67,854,079
74,464,078
2,187,587 4,125,608
18,822 312,766
- 17,386
44,137 353,709
- 36,166
- 3,400,000
9,452 9,452
101,583 716,493
2,574,542 70,428,621
4,936,123 79,400,201
See accompanying notes to financial statements.
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Packet Pg. 37
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
As of December 31, 2015
DEFERRED INFLOWS OF RESOURCES
Property taxes levied for a future period
Deferred inflows of resources related to pensions
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted for
Road construction
Capital projects
Parking lot operations
Unrestricted
TOTAL NET POSITION
Governmental Business -type
Activities Activities Totals
$ 15,192,849 $ - $ 15,192,849
2,533,984 150,366 2,684,350
17, 726, 833 150,366 17, 877,199
50,609,420 38,372,943 88,982,363
1,765,559
- 1,765,559
147,158
- 147,158
61,398
- 61,398
(34,637,401)
7,770,059 (26,867,342)
$ 17,946,134 $ 46,143,002 $ 64,089,136
See accompanying notes to financial statements.
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Packet Pg. 38
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Functions/Proarams
Governmental Activities
General government
Public safety
Public works
Buildings and grounds
Interest and fiscal charges
Total Governmental Activities
Business -type Activities
Water and Sewerage
Refuse Service
Arboretum Golf
Buffalo Grove Golf
Total Business -type Activities
Total
Program Revenues
Operating
Charges for Grants and
Expenses Services Contributions
-
$ 5,885,811 $ 1,624,134 $
27,256,737
1,745,580
214,559
10,901,771
61,194
1,014,469
649,835
-
-
285,863
-
-
44,980,017
3,430,908
1,229,028
8,561,248
9,495,691
-
702,106
1,039,876
-
1,920,654
1,238,090
-
1,368,228
1,097,838
-
12,552,236
12,871,495
-
$ 57,532,253
$ 16,302,403
$ 1,229,028
General Revenues
Taxes
Property
Home rule sales
Telecommunications taxes
Utility
Property transfer
Other
Intergovernmental
State sales tax
Income and use
Other
Investment income
Gain on sale of assets
Miscellaneous
Total General Revenues
Transfers
Change in net position
NET POSITION - Beginning of Year
(as restated)
NET POSITION - END OF YEAR
See accompanying notes to financial statements.
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Packet Pg. 39
2.B.a
Net (Expenses) Revenues and Changes in Net Position
Governmental Business -type
Activities Activities Totals
$ (4,261,677) $
(25,296,598)
(9,826,108)
(649,835)
(285,863) _
(40,320,081) _
- $ (4,261,677)
- (25,296,598)
- (9,826,108)
- (649,835)
_ (285,863)
_ (40,320,081)
- 934,443 934,443
- 337,770 337,770
- (682,564) (682,564)
(270,390) (270,390)
- 319,259 319,259
(40,320,081) 319,259 (40,000,822)
14,742,622
-
14,742,622
3,631,432
-
3,631,432
1,644,309
-
1,644,309
2,643,642
-
2,643,642
904,311
-
904,311
889,024
-
889,024
5,643,345
-
5,643,345
5,409,875
-
5,409,875
203,530
-
203,530
25,061
10,112
35,173
1,601
-
1,601
1,458,118
5,737
1,463,855
37,196,870
15,849
37,212,719
749,027
(749,027)
-
(2,374,184) (413,919) (2,788,103)
20,320,318 46,556,921 66,877,239
$ 17,946,134 $ 46,1431002 $ 64,089,136
See accompanying notes to financial statements.
Page 22
Packet Pg. 40
2.B.a
ASSETS
Cash and equivalents
Investments
Receivables
Property taxes
Municipal sales tax
Illinois income tax
Motor fuel tax
Telecommunication tax
Food and beverage tax
Utility tax
Interest
Other
Due from other funds
Due from fiduciary funds
Inventory
Other assets
Deposits
TOTAL ASSETS
VILLAGE OF BUFFALO GROVE
BALANCE SHEET
GOVERNMENTALFUNDS
As of December 31, 2015
Facilities
General Fund Development
Nonmajor
Governmental
Funds Totals
$ 17,368,527 $ - $ 1,925,411 $ 19,293,938
1,845,049 - - 1,845,049
14,593,786
- 599,063 15,192,849
2,787,581
- - 2,787,581
1,181,466
- - 1,181,466
-
- 93,652 93,652
437,785
- - 437,785
76,700
- - 76,700
228,040
- - 228,040
7,782
- - 7,782
55,498
- 358,962 414,460
44,712
- - 44,712
84,936
- - 84,936
79,667
- - 79,667
435,675
- - 435,675
471.575
- - 471.575
$ 39,698,779 $ - $ 2,977,088 $ 42,675,867
See accompanying notes to financial statements.
Page 23
Packet Pg. 41
2.B.a
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable
Accrued wages
Development deposits
Due to fiduciary funds
Due to other funds
Payroll deductions payable
Short-term notes payable
Total Liabilities
Deferred Inflows of Resources
Property taxes levied for a future
period
Total Deferred Inflows of
Resources
Fund Balances (Deficit)
Nonspendable for inventory
Nonspendable for deposits
Restricted for road construction
Restricted for capital project
Restricted for employee pension
benefits
Restricted for parking lot operations
Committed for capital replacement
Unassigned (deficit)
Total Fund Balances (deficit)
TOTAL LIABILITIES,
DEFERRED INFLOWS OF
RESOURCES, AND FUND
BALANCES
Nonmajor
Facilities Governmental
General Fund Development Funds
Totals
$ 1,103,196 $ 307,560 $
403,910 $ 1,814,666
277,985 -
- 277,985
309,572 -
- 309,572
36,166 -
- 36,166
61,794 -
- 61,794
17,386 -
- 17,386
- 3,400,000
- 3,400,000
1,806,099 3,707,560
403,910 5,917,569
14,593,786 - 599,063 15,192,849
14,593,786 - 599,063 15,192,849
79,667 - - 79,667
471,575 - - 471,575
- - 1,765,559 1,765,559
- - 147,158 147,158
223,622 - - 223,622
- - 61,398 61,398
7,532,123 - - 7,532,123
14,991,907 (3,707,560) - 11,284,347
23,298,894 (3,707,560) 1,974,115 21,565,449
$ 39,698,779 $ - $ 2,977,088 $ 42,675,867
See accompanying notes to financial statements.
Page 24
Packet Pg. 42
2.B.a
VILLAGE OF BUFFALO GROVE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
As of December 31, 2015
Total Fund Balances - Governmental Funds $ 21,565,449
Amounts reported for governmental activities in the statement of net position are
different because:
.-.
c
0
Capital assets used in governmental funds are not financial resources and
a
therefore are not reported in the funds.
_
d
Land
35,963,844
Construction in progress
761,660
a
Buildings
23,210,214
c
Land Improvements
3,242,060
Equipment and vehicles
11,884,949
Streets and storm sewers
57,385,410
a
Less: Accumulated depreciation
(77,798,717)
A deferred charge on refunding represents a consumption of net position that
applies to a future period and, therefore, is not reported in the funds.
64,497
U.
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the Governmental Funds Balance Sheet. 12,669,741
Less amount reported in internal service funds below. (333,879)
Deferred inflows of resources related to pensions do not related to current financial
resources and are not reported in the Governmental Funds Balance Sheet. (2,533,984)
Less amount reported in internal service funds below. 101,453
Some liabilities, including long-term debt, are not due and payable in the current
period and therefore, are not reported in the funds.
Bonds payable (10,040,000)
Compensated absences (1,352,691)
Net other post -employment obligation (758,973)
Unamortized debt premium (162,453)
Net pension liability (56,154,872)
Less amount reported in internal service funds below. 664,329
The net position of the internal service funds are included in the governmental
activities in the Statement of Net Position (431,903)
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 17,946,134
See accompanying notes to financial statements.
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Packet Pg. 43
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
REVENUES
Property
Other taxes
Charges for services
Fines and fees
Licenses and permits
Intergovernmental
Interest
Miscellaneous income
Total Revenues
EXPENDITURES
Current
General government
Public safety
Public works
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Facilities
General Development
$ 14,114,565 $
9,712,718
1,330,097
1,748,855
350,042
11,256,750
25,061
1,404,841 _
39,942,929 _
Nonmajor
Governmental
Funds Totals
$ 628,057 $ 14,742,622
- 9,712,718
- 672
1,330,769
- 182,657
1,931,512
- -
350,042
- 1,014,469
12,271,219
- -
25,061
_ -
1,404,841
_ 1,825,855
41,768,784
4,911,919 -
25,237,115 -
6,310,830 -
- 2,746,734
172,853 5,084,772
- 25,237,115
1,781,905 8,092,735
81,460 2,828,194
- - 510,000 510,000
- - 296,747 296,747
36,459,864 2,746,734 2,842,965 42,049,563
3,483,065 (2,746,734) (1,017,110) (280,779)
Sales of capital assets 1,601 - - 1,601
Transfers in 1,120,393 1,337,984 1,063,383 3,521,760
Transfers out (2,674,312) - (12,000) (2,686,312)
Total Other Financing Sources (Uses) (1,552,318) 1,337,984 1,051,383 837,049
Net Change in Fund Balances
1,930,747 (1,408,750) 34,273 556,270
FUND BALANCES (DEFICIT) - Beginning of
Year 21,368,147 (2,298,810) 1,939,842 21,009,179
FUND BALANCES (DEFICIT) - END
OF YEAR $ 23,298,894 $ (3,707,560) $ 1,974,115 $ 21,565,449
See accompanying notes to financial statements.
Page 26
Packet Pg. 44
2.B.a
VILLAGE OF BUFFALO GROVE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the statement of
net position the cost of these assets is capitalized and they are depreciated over their
estimated useful lives and reported as depreciation expense in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements but is
capitalized in the government -wide financial statements
Some items reported as capital outlay were not capitalized
Depreciation is reported in the government -wide financial statements
Net book value of assets retired
Debt issued provides current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net position. Repayment of debt principal
is an expenditure in the governmental funds, but the repayment reduces long-term
liabilities in the statement of net position.
Principal repaid
Governmental funds report debt premiums and discounts as other financing sources (uses)
or expenditures. However, in the statement of net position, these are reported as
additions to or deductions from long-term debt. These are allocated over the period the
debt is outstanding in the statement of activities and are reported as interest expense
Debt premium
Some expenses in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences
Net other post employment benefit obligation
Net pension liability
Deferred outflows of resources due to pensions
Deferred inflows of resources due to pensions
Amortization of deferred charge on refunding
$ 556,270
2,828,194
(1,088,574)
(2,184,305)
(168,877)
510,000
18,050
(106,302)
(249,486)
(11,092,321)
11,474,767
(2,432,531)
(7,166)
Internal service funds are used by management to charge information technology, central
garage, and building maintenance costs to individual funds. The change in net position of
the internal service funds is reported with governmental activities. (431,903)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ (2,374.184)
See accompanying notes to financial statements.
Page 27
Packet Pg. 45
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of December 31, 2015
ASSETS
Current Assets
Cash and equivalents
Investments
Receivables
Accounts - water and sewer
Interest
Other
Due from other funds
Inventory
Total Current Assets
Noncurrent Assets
Capital Assets
Land
Land improvements
Construction in progress
Buildings and improvements
Machinery, equipment and
furnishings
Water and sewer infrastructure
Less: Accumulated depreciation
Other Assets
Deposits
Investment in joint venture
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions
Total Deferred Outflows of Resources
Business -type Activities - Enterprise Funds
Water and
Sewerage
Nonmajor
Arboretum Enterprise
Golf Funds Totals
$ 437,591 $
11,981 $
937,750 $
1,387,322
500,280
-
-
500,280
1,522,482
-
-
1,522,482
312
-
-
312
35,429
14,922
195,664
246,015
-
41,532
20,262
61,794
-
13,863
19,455
33,318
2,496,094
82,298
1,173,131
3,751,523
- 5,219,738 978,776 6,198,514
- 1,516,051 450,437 1,966,488
4,118,394 - - 4,118,394
- 8,421,522 1,862,837 10,284,359
- - 94,510 94,510
62,106,468 - - 62,106,468
(34,612,913) (7,948,194) (2,257,597) (44,818,704)
173,426 - - 173,426
6,904,375 - - 6,904,375
38,689,750 7,209,117 1,128,963 47,027,830
41,185,844 7,291,415 2,302,094 50,779,353
330,577 56,811 107,462 494,850
330,577 56,811 107,462 494,850
See accompanying notes to financial statements.
Page 28
Packet Pg. 46
2.B.a
Governmental
Activities -
Internal
$ 139,314
139,314
139,314
333,879
333,879
See accompanying notes to financial statements.
Page 29
Packet Pg. 47
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of December 31, 2015
LIABILITIES
Current Liabilities
Accounts payable
Accrued wages
Other
Development deposits
Due to other funds
IEPA loan payable
Compensated absences
Installment note payable - current
Total Current Liabilities
Noncurrent Liabilities
Long -Term Debt
Compensated absences
IEPA loan payable
Net pension liability
Installment note payable - long term
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
TOTAL NET POSITION
Business -type Activities - Enterprise Funds
Water and
Sewerage
Nonmajor
Arboretum Enterprise
Golf Funds Totals
2,061,387
77,549
48,651
2,187,587
15,123
686
3,013
18,822
-
(1,880)
11,332
9,452
44,137
-
-
44,137
37,712
3,000
4,000
44,712
17,426
-
-
17,426
3,611
-
3,945
7,556
76,552
-
-
76,552
2,255,948
79,355
70,941
2,406,244
51,462 - 55,404 106,866
366,061 - - 366,061
657,759 113,037 213,821 984,617
1,117,047 - - 1,117,047
2,192,329 113,037 269,225 2,574,591
4,448,277 192,392 340,166 4,980,835
100,450 17,262 32,654 150,366
100,450 17,262 32,654 150,366
30,034,863 7,209,117 1,128,963 38,372,943
6,932,831 (70,545) 907,773 7,770,059
$ 36,967,694 $ 7,138,572 $ 2,036,736 $ 46,143,002
See accompanying notes to financial statements.
Page 30
Packet Pg. 48
2.B.a
Governmental
Activities -
Internal
.qaniica Fiinrlc
123,355
15,959
139,314
664,329
664,329
803,643
101,453
101,453
(431,903)
$ (431,903)
See accompanying notes to financial statements.
Page 31
Packet Pg. 49
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
OPERATING REVENUES
Water and sewer charges
Daily greens fee and memberships
Merchandise sales
Connection and recapture fees
Cart, club, and other rentals
Driving range fees
SWANCC user fees
Miscellaneous
Internal service contributions
Total Operating Revenues
OPERATING EXPENSES
Water operations
Sewer operations
Water purchases
Golf operations
Cost of sales - pro shop
Refuse operations
Loss from joint venture
Depreciation
Internal service fund expenses
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES
Interest
Total Nonoperating Revenues
Income (Loss) Before Transfers
TRANSFERS
Transfers in
Transfers out
Total Transfers
Change in Net Position
NET POSITION - Beginning of Year (as
restated)
NET POSITION - END OF YEAR
Business -type Activities - Enterprise Funds
Nonmajor
Water and
Arboretum
Enterprise
Sewerage
Golf
Funds
Totals
$ 9,401,310
$ -
$ -
$ 9,401,310
-
819,935
723,398
1,543,333
-
58,073
70,320
128,393
94,381
-
-
94,381
-
252,957
222,306
475,263
-
-
62,116
62,116
-
-
1,039,876
1,039,876
5,737
107,125
19,698
132,560
9,501,428
1,238,090
2,137,714
12,877,232
1,857,580
-
-
1,857,580
3,824,799
-
-
3,824,799
1,671,152
-
-
1,671,152
-
1,384,020
1,286,038
2,670,058
-
47,978
49,406
97,384
-
-
702,106
702,106
77,861
-
-
77,861
1,129,856
488,656
32,784
1,651,296
8,561,248
1,920,654
2,070,334
12,552,236
940,180
(682,564)
67,380
324,996
10,112
-
-
10,112
10,112
-
-
10,112
950,292
(682,564)
67,380
335,108
- 234,840 218,105 452,945
(1,038,044) (34,828) (129,100) (1,201,972)
(1,038,044) 200,012 89,005 (749.027)
(87,752) (482,552) 156,385 (413,919)
37,055,446 7,621,124 1,880,351 46,556,921
$ 36,967,694 $ 7,138,572 $ 2,036,736 $ 46,143,002
See accompanying notes to financial statements.
Page 32
Packet Pg. 50
2.B.a
Governmental
Activities -
Internal
3,879,087
3,879,087
4,224,569
4,224,569
(345,482)
(345,482)
(86,421)
(86,421)
(431,903)
$ (431,903)
See accompanying notes to financial statements.
Page 33
Packet Pg. 51
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
CASH FLOWS FROM OPERATING
ACTIVITIES
Received from customers
Received from interfund charges
Paid to suppliers for goods and services
Paid to employees for services
Net Cash Flows From Operating
Activities
CASH FLOWS FROM INVESTING
ACTIVITIES
Investments sold and matured
Interest income
Gain (Loss) on investment
Net Cash Flows From Investing
Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in
Transfers (out)
Proceeds from notes
Net Cash Flows From Noncapital
Financing Activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchase of capital assets
IEPA loan paid
Net Cash Flows From Capital and
Related Financing Activities
Net Change in Cash and Cash
Equivalents
Business -type Activities - Enterprise Funds
Water and
Sewerage
Nonmajor
Arboretum Enterprise
Golf Funds Totals
$ 9,366,309 $ 1,247,512 $ 2,081,964 $ 12,695,785
(6,808,744) (1,076,134) (1,532,645) (9,417,523)
(746,826) (351,028) (428,768) (1,526,622)
1,810,739 (179,650) 120,551 1,751,640
(500,000) - - (500,000)
9,832 - - 9,832
1,855 - - 1,855
(488,313) - - (488,313)
-
193,308
197,843
391,151
(1,009,332)
(34,828)
(129,100)
(1,173,260)
1,193, 599
-
-
1,193, 599
184,267
158,480
68,743
411,490.
(4,180,134)
-
-
(4,180,134)
(17,033)
-
-
(17,033)
(4,197,167)
-
-
(4,197,167)
(2,690,474)
(21,170)
189,294
(2,522,350)
CASH AND CASH EQUIVALENTS - Beginning
of Year 3,128,065 33,151 748,456 3,909,672
CASH AND CASH EQUIVALENTS - END
OFYEAR $ 437,591 $ 11,981 $ 937,750 $ 1,387,322
c
0
co
c
d
d
L
a
L
0
Q
m
U.
Q
U
d
0
0
0
�a
w
0
m
w
0
d
a�
�a
M
N
Lo
o
N
c
m
E
s
co
Q
See accompanying notes to financial statements.
Page 34
Packet Pg. 52
2.B.a
Governmental
Activities -
Internal
Service Funds
3,879,087
(2,771,425)
(881,927)
225,735
(86,421)
(86,421)
139,314
$ 139,314
See accompanying notes to financial statements.
Page 35
Packet Pg. 53
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation
Loss on joint venture
Changes in assets and liabilities
Accounts receivable
Accounts payable
Accrued salaries
Deposits
Inventory
Compensated absences
Deferred outflows - pensions
Deferred inflows - pensions
Net pension liability
NET CASH FLOWS FROM
OPERATING ACTIVITIES
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
Business -type Activities - Enterprise Funds
Water and
Sewerage
Nonmajor
Arboretum Enterprise
Golf Funds Totals
$ 940,180 $ (682,564) $ 67,380 $ 324,996
1,129,856
488,656
32,784
1,651,296
77,861
-
-
77,861
(135,503)
9,422
(55,750)
(181,831)
(334,364)
60,956
21,589
(251,819)
(39,223)
(14,877)
(17,466)
(71,566)
384
(1,880)
-
(1,496)
-
4,163
1,480
5,643
30,937
(96,859)
6,100
(59,822)
(208,930)
(6,736)
(49,193)
(264,859)
100,450
17,262
32,654
150,366
249.091
42.807
80.973
372.871
$ 1,810,739 $ (179,650) $ 120,551 $ 1,751,640
See accompanying notes to financial statements.
Page 36
Packet Pg. 54
2.B.a
Governmental
Activities -
Internal
Service Funds
$ (345,482)
123,355
15,959
(333,879)
101,453
664,329
$ 225,735
See accompanying notes to financial statements.
Page 37
Packet Pg. 55
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
As of December 31, 2015
ASSETS
Cash
Investments
U.S. treasuries
U.S. agencies
Mutual funds - other than bond funds
Equity securities
Municipal bonds
Corporate bonds
Receivables
Interest
Prepaid items
Due from primary government
Total Assets
LIABILITIES
Accounts payable
Due to primary government
Due to other governments
Total Liabilities
NET POSITION
Held in trust for pension benefits
Pension Trusts Agency Fund
$ 4,584,562 $ 525,757
11,235,508 -
19,168,606 -
33,259,723 -
26,445,824 -
3,203,140 -
8,783,622 -
182,779 -
5,378 -
36,166 -
106,905,308 525,757
87,256 -
84,936 -
- 525,757
172,192 525,757
$ 106,733,116 $ -
See accompanying notes to financial statements.
Page 38
Packet Pg. 56
2.B.a
VILLAGE OF BUFFALO GROVE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended December 31, 2015
Pension Trusts
ADDITIONS
Contributions
Employer
$ 4,486,453
Plan members
1,193,791
0
Total Contributions
5,680,244
a
c
d
Investment income
d
Interest
1,080,293
a
Net appreciation in fair value of investments
68,185
0
Total Investment Income
1,148,478
Less Investment expense
307,218
'
a
Net Investment Income
841,260
Total Additions
6,521,504
DEDUCTIONS
Administration
88,233
.�
Pension benefits and refunds
5,111,325
U.
Total Deductions
5,199,558
Q
Change in Net Position 1,321,946
NET POSITION - Beginning of Year 105,411,170
NET POSITION - END OF YEAR $ 106,733,116
See accompanying notes to financial statements.
Page 39
Packet Pg. 57
2.B.a
VILLAGE OF BUFFALO GROVE
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE Paqe
I Summary of Significant Accounting Policies 41
A.
Reporting Entity
41
B.
Government -Wide and Fund Financial Statements
42
C.
Measurement Focus, Basis of Accounting, and Financial Statement
0
Presentation
45
D.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources, and Net Position or Equity
46
N
1. Deposits and Investments
46
P
2. Receivables
50
1-
L
3. Inventories
51
° 0
4. Capital Assets
51
5. Deferred Outflows of Resources
52
a
6. Compensated Absences
52
7. Long -Term Obligations
52
8. Deferred Inflows of Resources
53
9. Equity Classifications
53
II Stewardship, Compliance, and Accountability
55
U.
v
A.
Excess Expenditures Over Appropriations
55
>
B.
Deficit Balances
55
0
C9
III Detailed Notes on All Funds
56
0
A.
Deposits and Investments
56
w
B.
Receivables
60
0
C.
Capital Assets
61
0
D.
Interfund Receivables/Payables and Transfers
63
°
E.
Short -Term Debt Activity
65
F.
Long -Term Obligations
65
=
G.
Lease Disclosures
68
>
H.
Restatement of Net Position
69
M
N
IV Other Information
69
A.
Employees' Retirement System
69
c
B.
Risk Management
83
`�'
C.
Commitments and Contingencies
84
D.
Joint Ventures
85
E
E.
Other Postemployment Benefits
87
F.
Subsequent Events
90
`0
G.
Effect of New Accounting Standards on Current -Period Financial Statements
90
Q
H.
Pledged Revenue
91
See accompanying notes to financial statements.
Page 40
Packet Pg. 58
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Buffalo Grove, Illinois (the Village) was incorporated in 1958. The Village is a home -rule
municipality, under the 1970 Illinois Constitution, located in both Lake County, Illinois and Cook County,
Illinois. The Village operates under a Council -Manager form of government and provides the following
services as authorized by its charter: public safety (police and fire protection), sanitation (water and
sewer), building and zoning, engineering, recreation, civil defense and overall administration.
The accounting policies of the Village of Buffalo Grove, Illinois conform to accounting principles generally
accepted in the United States of America as applicable to governmental units. The accepted standard -
setting body for establishing governmental accounting and financial reporting principles is the
Governmental Accounting Standards Board (GASB).
A. REPORTING ENTITY
This report includes all of the funds of the Village. The reporting entity for the Village consists of the
primary government and its component units. Component units are legally separate organizations for
which the primary government is financially accountable or other organizations for which the nature and
significance of their relationship with the primary government are such that their exclusion would cause
the reporting entity's financial statements to be misleading. The Village has not identified any
organizations that meet this criteria.
The Police Pension Employees Retirement System (PPERS) is established for the Village's police
employees. PPERS functions for the benefit of these employees and is governed by a five -member
pension board. Two members appointed by the Village's President, one pension beneficiary elected by the
membership, and two police employees elected by the membership constitute the pension board. The
Village and the PPERS participants are obligated to fund all PPERS costs based upon actuarial
valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to
approve the actuarial assumptions used in the determination of contribution levels. Although it possesses
many characteristics of a legally separate government, PPERS is reported as if it were part of the primary
government because its sole purpose is to finance and administer the pensions of the Village's police
employees and because of the fiduciary nature of such activities. PPERS is reported as a pension trust
fund and the data for the pension is included in the government's fiduciary fund financial statements. No
separate annual financial report is issued for the PPERS.
The Firefighters' Pension Employees Retirement System (FPERS) is established for the Village's
firefighters. FPERS functions for the benefit of these employees and is governed by a five -member
pension board. Two members appointed by the Village's President, one pension beneficiary elected by the
membership; and two fire employees elected by the membership constitute the pension board. The Village
and the FPERS participants are obligated to fund all FPERS costs based upon actuarial valuations. The
State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the
actuarial assumptions used in the determination of contribution levels. Although it possesses many of the
characteristics of a legally separate government, FPERS is reported as if it were part of the primary
government because its sole purpose is to finance and administer the pensions of the Village's firefighters
because of the fiduciary nature of such activities. FPERS is reported as a pension trust fund and the data
for the pension is included in the government's fiduciary fund financial statements. No separate annual
financial report is issued for the FPERS.
Page 41
Packet Pg. 59
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
In June 2012, the GASB issued statement No. 68 - Accounting and Financial Reporting for Pensions - an
amendment of GASB Statement No. 27. This statement establishes standards for measuring and
recognizing assets, liabilities, deferred outflows of resources, deferred inflows of resources, and
expense/expenditures related to pensions. In November 2013, the GASB issued statement No. 71 -
Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of
GASB Statement No. 68. This statement addresses an issue regarding application of the transition
provisions of Statement No. 68. These standards were implemented January 1, 2015.
Government -Wide Financial Statements
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds. The
statements distinguish between governmental and business -type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Business -type activities are financed in whole or in part by fees charged to external parties for goods or
services. Likewise, the primary government is reported separately from certain legally separate
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The Village does not allocate indirect expenses to functions in the statement
of activities. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not included among program revenues are reported as
general revenues. Internally dedicated resources are reported as general revenues rather than as
program revenues.
Fund Financial Statements
Financial statements of the Village are organized into funds, each of which is considered to be a separate
accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts,
which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net
position/fund balance, revenues, and expenditures/expenses.
Page 42
Packet Pg. 60
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.) o
�a
Funds are organized as major funds or nonmajor funds within the governmental and proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary categories. A
fund is considered major if it is the primary operating fund of the Village or meets the following criteria: a
L
a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources,
revenues, or expenditures/expenses of that individual governmental or enterprise fund are at a
least 10% of the corresponding total for all funds of that category or type, and
It
b. The same element of the individual governmental or enterprise fund that met the 10% test
is at least 5% of the corresponding total for all governmental and enterprise funds combined. rr
C. In addition, any other governmental or enterprise fund that the Village believes is
particularly important to financial statement users may be reported as a major fund.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
The Village reports the following major governmental funds:
General Fund - accounts for the Village's primary operating activities. It is used to account for
and report all financial resources except those accounted for and reported in another fund.
Facilities Development Fund - to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or
construction of capital facilities and other capital assets.
The Village reports the following major enterprise funds:
Water and Sewerage Fund - accounts for operations of the water and sewerage system.
Arboretum Golf Fund - accounts for operations of the Arboretum golf course. All activities
necessary to provide the service are accounted for in this fund including, but not limited to,
administration, operations, maintenance and related debt service.
Page 43
Packet Pg. 61
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
o
�a
The Village reports the following nonmajor governmental and enterprise funds:
d
L
Special Revenue Funds - used to account for and report the proceeds of specific revenue
a
sources that are restricted or committed to expenditures for specified purposes (other than debt
6.
o
service or capital projects).
a
Motor Fuel Tax Fund
Metra Parking Lot Fund
Debt Service Fund - used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for the payment of general long-term debt principal,
v
interest, and related costs.
Debt Service Fund
Capital Projects Fund - used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or
construction of capital facilities and other capital assets.
Street Maintenance Fund
Enterprise Funds - used to account for and report any activity for which a fee is charged to
external uses for goods or services, and must be used for activities which meet certain debt or
cost recovery criteria.
Buffalo Grove Golf Fund
Refuse Service Fund
In addition, the Village reports the following fund types:
Internal Service Fund - used to account for and report the financing of goods or services
provided by one department or agency to other departments or agencies of the Village, or to
other governmental units, on a cost -reimbursement basis.
Information Technology Fund
Central Garage Fund
Building Maintenance Fund
Page 44
Packet Pg. 62
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
o
�a
Pension Trust Funds - used to account for and report resources that are required to be held in
trust for the members and beneficiaries of defined benefit pension plans.
L
a
Police Pension Fund
o
Firefighters' Pension Fund
Q
Agency Fund - used to account for and report assets held by the Village in a trustee capacity or
as an agent for individuals, private organizations, and/or other governmental units.
School and Park Donations Fund
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Government -Wide Financial Statements
The government -wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange -like transactions are recognized when the exchange takes place. Property taxes
are recognized as revenues in the year for which they are levied. Taxes receivable for the following year
are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as
revenue when earned. Unbilled receivables are recorded as revenues when services are provided.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recorded when they are both
measurable and available. Available means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. For this purpose, the Village considers revenues to be
available if they are collected within 90 days of the end of the current fiscal period. Expenditures are
recorded when the related fund liability is incurred, except for unmatured interest on long-term debt,
claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund
liability when expected to be paid with expendable available financial resources.
Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized
as revenues in the succeeding year when services financed by the levy are being provided.
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Packet Pg. 63
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.)
Fund Financial Statements (cont.)
o
�a
Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled the
resources and the amounts are available. Amounts owed to the Village which are not available are
recorded as receivables and unavailable revenues. Amounts received before eligibility requirements
a
(excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting
c
time requirements are recorded as deferred inflows.
Q
Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services,
special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees,
recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable
and available under the criteria described above.
.v
Proprietary and fiduciary fund financial statements (other than agency funds) are reported using the
economic resources measurement focus and the accrual basis of accounting, as described previously in
this note. Agency funds follow the accrual basis of accounting, and do not have a measurement focus.
The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
Water and Sewer fund are charges to customers for sales and services. Special assessments are
recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds
include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
All Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estimates.
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the Village considers all highly liquid investments with an
initial maturity of three months or less when acquired to be cash equivalents.
Page 46
Packet Pg. 64
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
Illinois Statutes authorize the Village to make deposits/investments in insured commercial banks, savings
and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares,
money market mutual funds with portfolios of securities issued or guaranteed by the United States or
agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper
rated within the three highest classifications by at least two standard rating services, and the Illinois Funds
Investment Pool.
Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax
anticipation warrants, veteran's loans, obligations of the State of Illinois and its political subdivisions, and
the Illinois insurance company general and separate accounts, mutual funds meeting certain
requirements, equity securities, and corporate bonds meeting certain requirements. Pension funds with
net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion
of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The
police pension fund's investment policy allows investments in all of the above listed accounts, but does
exclude any repurchase agreements. The firefighters pension fund allows funds to be invested in any type
of security authorized by the Illinois Pension Code.
The police pension fund's investment policy, in accordance with Illinois Statutes, establishes the following
target allocation across asset classes:
Long -Term
Expected Real
Asset Class Target Rate of Return
Cash
2%
(0.25)%
Fixed income
33%
4.14%
Large cap domestic equities
52%
5.34%
Small cap domestic equities
5%
6.55%
International equities
5%
5.84%
Real estate
3%
5.92%
Illinois Compiled Statues (ILCS) limit the police pension fund's investments in equities, mutual funds and
variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The
blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio.
Page 47
Packet Pg. 65
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
C
O
1. Deposits and Investments (cont.)
c
d
The long-term expected rate of return on the police pension fund's investments was determined using a
building block method. The best -estimate of future real rates of return (net of pension plan investment
a
expense and inflation) were developed for each major asset class. These ranges were combined to
c
produce long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates or arithmetic real rates
'
a
of return for each major asset class included in the police pension fund's target asset allocation are listed
in the table above.
It
The firefighters' pension fund's investment policy, in accordance with Illinois Statutes, establishes the
following target allocation across asset classes:
U.
Long -Term
cap
Expected Real
>
Asset Class Target Rate of Return
o
0
U.S. treasury bills/notes/bonds 15% 2.20%
c
U.S. government agency securities (non-MBS) 17.5% 2.20%
�a
m
U.S. government agency securities - callable 10% 2.20%
c
U.S. government agency securities (MBS) 2.5% 2.20%
d
Taxable municipal securities 5% 2.20%
U.S. large company stocks 35% 7.00%
N
U.S. small company stocks 10% 9.10%
Lo
International stocks 5% 7.20%
0
`�'
Illinois Compiled Statues (ILCS) limit the firefighters' pension fund's investments in equities, mutual funds
and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The
blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio.
The long-term expected rate of return on the firefighters' pension fund's investments was determined
using an asset allocation study conducted by the firefighters' pension fund's investment management
consultant in 2015 in which best -estimate ranges of expected future real rates of return (net of pension
plan investment expense and inflation) were developed for each major asset class. These ranges were
combined to produce long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. Best estimates or
arithmetic real rates of return for each major asset class included in the firefighters' pension fund's target
asset allocation are listed in the table above
The Village, Police and Firefighters' pensions have adopted an investment policy. That policy follows the
state statute for allowable investments.
Page 48
Packet Pg. 66
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
C
O
1. Deposits and Investments (cont.)
c
d
Interest Rate Risk
d
L
a
The Village's investment policy protects against fair value losses resulting from rising interest rates by o
diversifying its investment portfolio to prevent over -concentration of assets in a specific maturity, a
specific issuer, or a specific class of securities. The Village does not have a formal policy that limits a
investment maturities as a means of managing its exposure to fair value losses arising from increasing
interest rates.
Credit Risk W
The Village's investment policy applies the "prudent person" standard in managing its investment
portfolio. As such, all investments are made with such judgment and care, under circumstances then
prevailing, which persons of prudence, discretion and intelligence exercise in management of their own
affairs, not for speculation, but for investment, considering the probable safety of their capital as well as
the probable income to be derived.
The Village's investment policy also limits investments in commercial paper to the highest rating
classifications, as established by at least two of the four major rating services, and which mature not
later than 180 days from the purchase date. Such purchases may not exceed 10% of the
issuer corporation's outstanding obligations.
Concentration of Credit Risk
The Village limits the amount that can be invested in commercial paper to one-third of the Village's total
investments.
Custodial Credit Risk - Deposits
The Village's investment policy requires securing deposit collateral from depository institutions when
deposits are in excess of FDIC limits. The amount of deposits not collateralized or insured by an agency
of the federal government shall not exceed 75% of the capital stock and surplus of a banking institution.
These values shall be reviewed on a quarterly basis comparing actual deposits not insured or
collateralized against the capital stock and surplus measure. Values shall be taken from published
regulatory agency reports required by either the Comptroller of the Currency or the Commissioner of
Banks and Trust Companies.
If deposits are maintained with a savings and loan association, the amount of deposits not collateralized or
insured shall not exceed 75% of the net worth of the institution as defined and reported to the regulatory
agencies. The Police and Firefighters' Pension investment policies limit exposure to deposit custodial
credit risk by requiring deposits in excess of FDIC insurable limits to be collateralized.
Page 49
Packet Pg. 67
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
Custodial Credit Risk - Investments
The Village's investment policy requires all investments and investment collateral to be held in
safekeeping by a third party custodial institution as designated by the Treasurer in the Village's name
Direct investments guaranteed by the United States or an agency of the United States do not require
collateral.
Investments are stated at fair value, which is the amount at which an investment could be exchanged in a
current transaction between willing parties. Fair values are based on quoted market prices. No
investments are reported at amortized cost. Adjustments necessary to record investments at fair value are
recorded in the operating statement as increases or decreases in investment income. Investment income
on commingled investments of municipal accounting funds is allocated based on average balances. The
difference between the bank statement balance and carrying value is due to outstanding checks and/or
deposits in transit.
Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows
governments within the State to pool their funds for investment purposes. Illinois Funds is not registered
with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the
Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund's share price,
the price for which the investments could be sold.
Illinois Metropolitan Investment Fund (IMET) is a not -for -profit investment trust formed pursuant to the
Illinois Municipal Code and managed by a Board of Trustees elected from the participating members.
IMET is not registered with the SEC as an investment company. Investments in IMET are valued at
IMET's share price, the price for which the investment could be sold.
See Note III. A. for further information.
2. Receivables
Property taxes for levy year 2015 attaches as an enforceable lien on January 1, 2015, on property values
assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax
Levy Ordinance).
Tax bills for levy year 2014 are prepared by Cook County and issued on or about February 1, 2015 and
July 1, 2015, and are payable in two installments, on or about March 1, 2015 and August 1, 2015 or within
30 days of the tax bills being issued.
Tax bills for levy year 2014 are prepared by Lake County and issued on or about June 1, 2015 and August
1, 2015, and are payable in two installments, on or about July 1, 2015 and September 1, 2015 or within 30
days of the tax bills being issued.
Page 50
Packet Pg. 68
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
C
O
2. Receivables (cont.)
c
d
The counties collect such taxes and remits them periodically. The 2015 property tax levy is recognized as
a receivable and deferred inflow in fiscal 2015. As the taxes become available to finance current a
expenditures, they are recognized as revenues. At December 31, 2015, the property taxes receivable and c
deferred inflow consisted of the estimated amount collectible from the 2015 levy.
Q
During the course of operations, transactions occur between individual funds that may result in amounts
owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term
interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund
receivables and payables between funds within governmental activities are eliminated in the statement of W
net position. Any residual balances outstanding between the governmental activities and business -type U.
activities are reported in the governmental -wide financial statements as internal balances. cap
In the governmental fund financial statements, advances to other funds are offset equally by a
nonspendable fund balance account which indicates that they do not constitute expendable available
financial resources and, therefore, are not available for appropriation or by a restricted fund balance
account, if the funds will ultimately be restricted when the advance is repaid.
3. Inventories
Governmental fund inventories, if material, are recorded at cost based on the FIFO method using the
consumption method of accounting. Inventories consist of golf pro shop merchandise and central garage
fuel reserves.
4. Capital Assets
Government -Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government -wide financial
statements. Capital assets are defined by the government as assets with an initial cost of more than
$10,000 and an estimated useful life in excess of 1 year. All capital assets are valued at historical cost, or
estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their
estimated fair value at the date of donation.
Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the
statement of activities, with accumulated depreciation and amortization reflected in the statement of net
position. Depreciation and amortization is provided over the assets' estimated useful lives using the
straight-line method. The range of estimated useful lives by type of asset is as follows:
Page 51
Packet Pg. 69
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
C
O
4. Capital Assets (cont.)
c
d
Government -Wide Statements (cont.)
L
a
Buildings 20 Years
c
Well and System
Improvements 5 - 50 Years
'
a
Furniture and Equipment 2 - 10 Years
Vehicles 2 - 12 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary
fund operations are accounted for the same way as in the government -wide statements.
5. Deferred Outflows of Resources
A deferred outflow of resources represents a consumption of net position/fund balance that applies to a
future period and will not be recognized as an outflow of resources (expense/expenditure) until that future
time.
6. Compensated Absences
Vacation pay does vest; employees may carry over vacation time equivalent of one full year's
allowance. All vacation hours carried over from the previous year must be used in the current year or be
subject to forfeit. Terminated employees are reimbursed for any accumulated and earned vacation pay.
The amounts of such accumulated vacation benefits are not material. In the event of termination, any
vested amounts due to Village employees for accumulated unused sick leave will be paid to ICMA
Retirement Corporation based on the formula set forth in the Village's personnel manual. Except for those
amounts for known retirements in the upcoming year, accrued amounts are generally considered
to be due after one year. Amounts are reported as liabilities in the Government -wide Statement of Net
Position. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. A liability
for these amounts is reported in governmental funds only if they have mature, for example, as a result of
employee resignations or retirements and are payable with expendable resources.
7. Long -Term Obligations
All long-term obligations to be repaid from governmental and business -type resources are reported as
liabilities in the government -wide statements. The long-term obligations consist primarily of bonds
payable.
Page 52
Packet Pg. 70
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
C
O
7. Long -Term Obligations
c
d
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing sources and a
payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the c
same as it is in the government -wide statements.
Q
For the government -wide statements and proprietary fund statements, bond premiums and discounts are
amortized over the life of the issue using the effective interest method. The balance at year end is shown
as an increase or decrease in the liability section of the statement of net position.
8. Deferred Inflows of Resources
A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a
future period and therefore will not be recognized as an inflow of resources (revenue) until that future time.
9. Equity Classifications
Government -Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets - Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances (excluding
unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position - Consists of net position with constraints placed on their use either
by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments or, 2) law through constitutional provisions or enabling legislation.
C. Unrestricted net position - All other net positions that do not meet the definitions of
"restricted" or "net investment in capital assets."
When both restricted and unrestricted resources are available for use, it is the Village's policy to use
restricted resources first, then unrestricted resources as they are needed.
Page 53
Packet Pg. 71
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
C
O
Fund Statements
c
d
Governmental fund balances are displayed as follows:
L
a
a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are o
not in spendable form or because legal or contractual requirements require them to be
maintained intact. '
Q
It
b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments or
2) law through constitutional provisions or enabling legislation. rr
c. Committed - Includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority. Fund balance amounts are committed through a formal action (ordinance) of
the Village Board. This formal action must occur prior to the end of the reporting period, but the
amount of the commitment, which will be subject to the constraints, may be determined in the
subsequent period. Any changes to the constraints imposed require the same formal action of
the Village Board that originally created the commitment.
d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific
purposes that do not meet the criteria to be classified as restricted or committed. The Village
has adopted a financial policy authorizing the Director of Finance to assign amounts for a
specific purpose. Assignments may take place after the end of the reporting period.
e. Unassigned - Includes residual positive fund balance within the general fund which has not been
classified within the other above mentioned categories. Unassigned fund balance may also
include negative balances for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those purposes.
Proprietary fund equity is classified the same as in the government -wide statements.
The Village considers restricted amounts to be spent first when both restricted and unrestricted fund
balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant
agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then
assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made.
The Village has a formal minimum fund balance policy. That policy is to maintain fund balance in the
General Fund to fund operations for a period of at least three months. The amount in the General Fund is
adjusted annually with the adoption of the annual budget and is calculated as three months (25 percent) of
General Fund expenditures (excluding transfers to fund capital projects and pensions). The balance at
year end was $9,760,213, and is included in unassigned General Fund fund balance.
Page 54
Packet Pg. 72
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. EXCESS EXPENDITURES OVER APPROPRIATIONS
Funds
Street Maintenance
Police Pension
Firefighters' Pension
Arboretum Golf
Motor Fuel Tax
Metra Parking Lot
Buffalo Grove Golf
Budgeted
Exaenditures
$ 50,000
3,090,627
2,203,491
1,361,050
1,679,205
152,935
1,264,596
Actual
Exaenditures
$ 81,460
3,192,215
2,314,561
1,431,998
1,781,905
172,853
1,335,444
Excess
Expenditures Over
Budaet
$ 31,460
101,588
111,070
70,948
102,700
19,918
70,848
The Village controls expenditures at the department level. Some individual departments experienced
expenditures which exceeded appropriations. The detail of those items can be found in the Village's year-
end budget to actual report.
B. DEFICIT BALANCES
Generally accepted accounting principles require disclosure of individual funds that have deficit balances
at year end.
As of December 31, 2015, the following individual funds held a deficit balance:
Fund
Facilities Development
Central Garage
Building Maintenance
Amount Reason
$ (3,707,560) Expenditures exceeded revenues
(256,541) Expenses exceeded revenues
(175,362) Expenses exceeded revenues
Page 55
Packet Pg. 73
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
The Village's deposits and investments at year end were comprised of the following:
o
�a
Carrying
Statement
=
Value
Balances
Associated Risks
L
a
Deposits $
10,108,960
$ 10,601,657
Custodial Credit Risk-
c
Deposits
Money market mutual funds
5,116,509
5,116,509
Credit Risk
'
Q
Illinois Funds
41664,982
4,584,744
Credit Risk
IMET- money market
1,825,561
1,825,561
Credit Risk
IMET - 1-3 year fund
41212,181
4,212,181
Credit Risk, Custodial
Credit Risk- Investments,
Interest Rate Risk
LL
U.S. treasuries
11,235,508
11,235,508
Custodial Credit Risk -
Q
U
Investments, Interest
>
Rate Risk
o
U.S. agencies
21,018,363
21,018,363
Credit Risk, Custodial
C9
Credit Risk - Investments,
°
Concentration of Credit
w
Risk, Interest Rate Risk
'
m
Mutual funds - other than bond funds
33,259,723
33,259,723
N/A
c
Equity securities
26,445,824
26,445,824
Custodial Credit Risk -
Investments,
ra
Concentration of Credit
Risk
Municipal bonds
3,698,712
3,698,712
Credit Risk, Custodial
N
Credit Risk - Investments,
Concentration of Credit
`r'
Risk, Interest Rate Risk
N
Corporate bonds
8,783,622
8,783,622
Credit Risk, Custodial
Credit Risk- Investments,
s
Concentration of Credit
Risk, Interest Rate Risk
Petty cash
2,700
-
N/A
Q
Total Deposits and Investments $130,372,645 $130,782,404
Page 56
Packet Pg. 74
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Reconciliation to financial statements
Per statement of net position
Cash and equivalents
$ 20,820,574
Investments
2,345,329
Per statement of net position - fiduciary
funds
Cash - pension trusts
4,584,562
Cash - agency
525,757
U.S. treasuries
11,235,508
U.S. agencies
19,168,606
Mutual funds - other than bond funds
33,259,723
Equity securities
26,445,824
Municipal bonds
3,203,140
Corporate bonds
8,783,622
Total Deposits and Investments $130,372,645
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and
savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest -bearing
and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the
government is located, insured amounts are further limited to a total of $250,000 for the combined amount
of all deposit accounts.
Custodial Credit Risk
Deposits
Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may
not be returned to the Village.
The Village does not have any deposits exposed to custodial credit risk.
Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
Village will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party.
The Village does not have any investments exposed to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Page 57
Packet Pg. 75
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Credit Risk (cont.)
As of December 31, 2015, the Village's investments were rated as follows:
Investment Type
Money market mutual funds
Illinois Funds
Illinois Metropolitan Investment Fund
U.S. agencies
Municipal bonds
Corporate bonds
Interest Rate Risk
Moody's
Standard & Investors
Poors Services
Not Rated
AAA
AAA
Not Rated,
AA+ to AAA
Not Rated, A to
AAA
Not Rated, A -
to AAA
Not Rated
Not Rated
Not Rated
Not Rated, Aaa
Not Rated, A3
to Aaa
Not Rated, A3
to Aaa
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment.
As of December 31, 2015, the Village's investments were as follows:
Village
Investment Type
U.S. agencies
Municipal bonds
Totals
Maturity
Less than one
Fair Value year 1 - 5 years
$ 1,849,757 $ - $ 1,849,957
495,572 - 495,572
$ 2,345,329 $ - $ 2,345,529
Page 58
Packet Pg. 76
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Interest Rate Risk (cont.)
Police Pension
Maturity
Less than one More than 10
Investment Type Fair Value year 1-5 years 6-10 years years
U.S. treasuries $ 8,022,404 $ 1,197,394 $ 6,825,010 $ - $ -
U.S. agencies 3,767,589 993,288 1,276,027 1,498,274 -
Corporate bonds 8,783,622 - 5,563,307 1,497,779 1,722,536
Totals $ 20,573,615 $ 2,190,682 $ 13,664,344 $ 2,996,053 $ 1,722,536
Firef4ghters' Pension
Maturity
Less than one
More than 10
Investment Type
Fair Value
year
1-5 years
6-10 years
years
U.S. treasuries
$ 3,213,104
$ 501,672
$ 2,083,236
$ 628,196
$ -
U.S. agencies
15,401,017
201,601
3,691,955
10,747,923
759538
Municipal bonds
3,203,140
155,000
1,136,792
1,435,828
475:520
Totals
$ 21,817,261
$ 858,273
$ 6,911,983
$ 12,811,947
$ 1,235,058
Page 59
Packet Pg. 77
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Money -Weighted Rate of Return
Police Pension Fund
For the year ended December 31, 2015, the annual money -weighted rate of return on pension plan
investments, net of pension plan investment expense, was 0.67%. The money -weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
Firefighters' Pension Fund
For the year ended December 31, 2015, the annual money -weighted rate of return on pension plan
investments, net of pension plan investment expense, was 1.32%. The money -weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
See Note I.D.1. for further information on deposit and investment policies.
B. RECEIVABLES
All of the receivables on the balance sheet are expected to be collected within one year.
Page 60
Packet Pg. 78
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015, was as follows:
Governmental Activities
Capital assets not being depreciated
Land
Construction in progress
Total Capital Assets Not Being
depreciated
Capital assets being depreciated
Buildings
Equipment and vehicles
Land improvements
Streets
Storm sewers
Total Capital Assets Being
Depreciated
Total Capital Assets
Less: Accumulated depreciation for
Buildings
Equipment and vehicles
Land improvements
Streets
Storm sewers
Total Accumulated depreciation
Net Capital Assets Being
Depreciated
Total Governmental Activities
Capital Assets, Net of
Accumulated
Depreciation
Beginning
Ending
Balance
Additions
Deletions
Balance
$ 35,963,844
$ -
$ -
$ 35,963,844
472,361
453,593
164,294
761,660
36,436,205
453,593
164,294
36,725,504
22,722,897
487,317
-
23,210,214
12,954,041
221,316
1,290,408
11,884,949
3,179,774
62,286
-
3,242,060
19,040,719
679,402
-
19,720,121
37,665,289
-
-
37,665,289
95,562,720
1,450,321
1,290,408
95,722,633
131,998,925
1,903,914
1,454,702
132,448,137
(19,943,035)
(469,041)
-
(20,412,076)
(9,402,542)
(675,149)
1,121,531
(8,956,160)
(277,156)
(64,846)
-
(342,002)
(12,111,137)
(381,463)
-
(12,492,600)
(35,002,073)
(593,806)
-
(35,595,879)
(76,735,943)
(2,184,305)
1,121,531
(77,798,717)
18,826,777 (733,984) 168,877 17,923,916
$ 55,262,982 $ (280,391) $ 333,171 $ 54,649,420
Depreciation expense was charged to functions as follows:
Governmental Activities
General government
Public safety
Public works
Total Governmental Activities Depreciation Expense
$ 250,916
161,845
1,771,544
$ 2,184,305
Page 61
Packet Pg. 79
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS (cont.)
Business -type Activities
Capital assets not being depreciation
Land
Construction in progress
Total Capital Assets Not Being
depreciation
Capital assets being depreciated
Buildings
Land improvements
Equipment
Water/Sewer infrastructure
Total Capital Assets Being
Depreciated
Total Capital Assets
Less: Accumulated depreciation for
Buildings
Land improvements
Equipment
Water/Sewer infrastructure
Total Accumulated depreciation
Net Capital Assets Being
Depreciated
Beginning
Ending
Balance
Additions Deletions
Balance
$ 6,198,514
$ - $ -
$ 6,198,514
-
4,118,394 -
4,118,394
6,198,514
4,118,394 -
10,316,908
10,284,359
- -
10,284,359
1,966,488
- -
1,966,488
94,510
- -
94,510
60,899,559
1,206,909 -
62,106,468
73,244,916
1,206,909 -
74,451,825
79,443,430
5,325,303 -
84,768,733
(7,623,353)
(521,440) -
(8,144,793)
(1,966,488)
- -
(1,966,488)
(94,510)
- -
(94,510)
(33,483,057)
(1,129,856) -
(34,612,913)
(43,167,408)
(1,651,296) -
(44,818,704)
30,077,508 (444,387) - 29,633,121
Business -type Capital
Assets, Net of
Accumulated depreciation $ 36,276,022 $ 3,674,007 $ - $ 39,950,029
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Page 62
Packet Pg. 80
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS
Interfund Receivables/Payables
The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash
and investment accounts:
Receivable Fund
General
General
General
Arboretum Golf
Nonmajor Business Type
Payable Fund
Water and Sewerage
Arboretum Golf
Nonmajor Business Type
General
General
Total - Fund Financial Statements
Less: Fund eliminations
Total Internal Balances - Government -Wide Statement of
Net Position
All amounts are due within one year.
Amount
$ 37,712
3,000
4,000
41,532
20,262
106,506
(123,588)
$ (17,082)
The principal purpose of these interfunds is due to negative cash balances in certain funds and other cash
related transactions. All remaining balances resulted from the time lag between the dates that (1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the
accounting system, and (3) payments between funds are made.
Page 63
Packet Pg. 81
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS (cont.)
Transfers
The following is a schedule of interfund transfers:
Fund Transferred To
Fund Transferred From
Amount
General
Water and Sewerage
$ 858,044
General
Arboretum Golf
34,828
General
Nonmajor Business Type
129,100
General
Nonmajor Governmental
12,000
General
Internal Service Funds
86,421
Nonmajor Governmental
General
883,383
Nonmajor Governmental
Water and Sewerage
180,000
Arboretum Golf
General
234,840
Nonmajor Business Type
General
218,105
Facilities Development
General
1,337,984
Total - Fund Financial Statements
3,974,705
Less: Fund eliminations
(3,225,678)
Total Transfers - Government
-Wide Statement
of Activities
$ 749,027
Principal Purpose
To fund administrative,
operating, and maintenance
expenses
Administrative expenses
Administrative expenses
To fund projects
Funding of capital reserve
Administrative expenses and
funding of capital reserve
To fund debt service
Administrative expenses
Administrative expenses
Administrative expenses and
funding of capital reserve
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the
budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the
receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations.
For the statement of activities, interfund transfers within the governmental activities or business -type
activities are netted and eliminated.
Page 64
Packet Pg. 82
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E. SHORT-TERM DEBT ACTIVITY
The Village issued short-term debt for funding costs related to the Emerald Ash Borer reforestation.
Short-term debt activity for the year ended December 31, 2015, was as follows:
Beginning Ending
Balance Issued Redeemed Balance
Line of credit $ 2,400,000 $ 1,000,000 $ - $ 3,400,000
Totals $ 2,400,000 $ 1,000,000 $ - $ 3,400,000
F. LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended December 31, 2015, was as follows:
Beginning
Balance (as
restated) Increases
Amounts Due
Ending Within One
Decreases Balance Year
Governmental Activities
Bonds Payable
General obligation debt
$
10,550,000
$
-
$
510,000
$
10,040,000
$
525,000
Premium
180,503
-
18,050
162,453
-
Sub -totals
10,730,503
-
528,050
10,202,453
525,000
Other Liabilities
Vested compensated
absences
1,246,389
196,212
89,910
1,352,691
89,910
Other postemployment
benefits
509,487
608,091
358,605
758,973
-
Net pension liability
44,398,222
11,756,650
-
56,154,872
-
Total Other Liabilities
46,154,098
12,560,953
448,515
58,266,536
89,910
Total Governmental
Activities Long -Term
Liabilities
$
56,884,601
$
12,560,953
$
976,565
$
68,468,989
$
614,910
Business -type Activities
Loans and Notes Payable
IEPA loan payable
$
400,519
$
-
$
17,032
$
383,487
$
17,426
Water installment note
-
1,193,599
-
1,193,599
76,552
Sub -totals
400,519
1,193,599
17,032
1,577,086
93,978
Other Liabilities
Vested compensated
absences
174,244
61,695
121,517
114,422
7,605
Net pension liability
611,746
372,871
-
984,617
-
Total Other Liabilities
785,990
434,566
121,517
1,099,039
7,605
Total Business -type
Activities Long -Term
Liabilities
$
1,186,509
$
1,628,165
$
138,549
$
2,676,125
$
101,583
Page 65
Packet Pg. 83
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F. LONG-TERM OBLIGATIONS (cont.)
General Obligation Debt
All general obligation bonds payable are backed by the full faith and credit of the Village. Bonds in the
governmental funds will be retired by future property tax levies or tax increments accumulated by the debt
service fund.
Governmental Activities
General Obligation Debt
General Obligation
Bonds Series 2010A
General Obligation
Bonds Series 2010B
General Obligation
Bonds Series 2012
Date of Final
Issue Maturity
Balance
Interest Original December 31,
Rates Indebtedness 2015
4/6/2010 12/31/2020 2.0-4.0% $ 5,160,000 $ 1,805,000
4/6/2010 12/31/2025 2.5-3.85% 2,600,000 2,235,000
8/27/2012 6/30/2030 2.0-2.75%
Total Governmental Activities - General Obligation Debt
Debt service requirements to maturity are as follows:
Years
2016
2017
2018
2019
2020
2021-2025
2026-2030
Totals
IEPA Loan Payable
Governmental Activities
General Obligation Debt
Principal Interest
$ 525,000 $ 282,063
545,000
665,000
680,000
715,000
3,410,000
3.500.000
$ 10,040,000
266,313
249,463
225,888
201,738
711,423
276.125
$ 2,213,013
6,000,000 6,000,000
$ 10,040,000
The Village borrowed funds from the Illinois Environmental Protection Agency (IEPA) for the design,
construction, and installation of various architectural, mechanical and electrical improvements to the
Village's four existing pump stations. Under loan agreement #L17-4103, the Village can borrow up to
$710,000 and has borrowed $383,487 as of December 31, 2015.
Page 66
Packet Pg. 84
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F. LONG-TERM OBLIGATIONS (cunt.)
Business -type Activities Date of Final
IEPA Loan Payable Issue Maturity
IEPA Loan Payable 11/20/2013 12/1/2033
Total Business -type Activities IEPA Loan Payable
Debt service requirements to maturity are as follows:
Years
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2033
Totals
Water Installment Note
Balance
Interest Original December 31,
Rates Indebtedness 2015
2.295% $ 407,307 $ 383,487
Business -type Activities
IEPA Loan Payable
Principal Interest
$ 17,426
17,828
18,240
18,661
19,092
102,275
114,636
75,329
$ 8,702
8,299
7,888
7,467
7,036
28,364
16,003
3,054
$ 383,487 $ 86,813
$ 383,487
In fiscal year 2015, the Village entered into an installment note agreement with U.S. Bankcorp to fund its
water meter project. The Village receives installment proceeds as water meters are purchased or work is
performed on the project. U.S. Bankcorp (seller of the installment note) placed $6,970,999 into escrow on
the closing date of the agreement. As of December 31, 2015, the Village had received $1,193,599 in
installment note proceeds. The Village received an additional $3,421,774 in installment note proceeds
during fiscal year 2016. As the Village has not finished borrowing on the note, a debt service to maturity
schedule is not known. The Village is required to start making payments in 2016 ($76,552).
Other Debt Information
In the governmental activities, the Village's obligation for compensated absences, other postemployment
benefits, and net pension liability will be repaid from the General Fund.
Page 67
Packet Pg. 85
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F. LONG-TERM OBLIGATIONS (cont.)
Prior -Year Defeasance of Debt o
�a
In prior years, the Village defeased certain general obligation and other bonds by placing the proceeds of
new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the a
Village's financial statements. At December 31, 2015, $1,915,000 of bonds outstanding are considered c
defeased.
Q
G. LEASE DISCLOSURES
Lessee - Operating Leases
The Village has commitments with non -Village entities to lease certain property. Future minimum rental
commitments as of December 31, 2015 are as follows:
Years
Amount
2016
$ 121,741
2017
124,176
2018
126,660
2019
129,193
2020
131,777
2021-2025
650,349
Totals
$ 1,283,896
Page 68
Packet Pg. 86
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
H. RESTATEMENT OF NET POSITION
Net position has been restated as a result of the implementation of GASB Statement No. 68 - Accounting
and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27 and implementation of
GASB Statement No. 71 - Pension Transition for Contributions Made Subsequent to the Measurement
Date. These statements require the net pension liability and related deferred outflows and deferred
inflows, if any, to be reported in the financial statements. The details of this restatement are as follows:
Government -Wide Financial
Statements
Proprietary Financial Statements
Non -major
Governmental Business -type Water & Arboretum Enterprise
Activities Activities Sewerage Golf Funds
Net Position - December 31, 2014
(as reported) $ 64,425,792 $ 46,938,676 $37,342,467 $ 7,641,279 $ 1,119,875
Add: Prior year police net pension
liability
46,710 - - - -
Less: Prior year fire pension asset
(615,057) - - - -
Less: Net Pension liability- IMRF
(2,989,805) (611,746) (408,688) (70,230) (132,848)
Add: Deferred outflows related to
pensions - IMRF
861,095 229,991 121,647 50,075 58,269
Less: Net pension liability - Police
(25,087,541) - - - -
Less: Net pension liability - Fire
(16,320,876) - - - -
Net position - December 31, 2014
(as restated)
$ 20,320,318 $ 46,556,921 $37,055,426 $ 7,621,124 $ 1,045,296
NOTE IV - OTHER INFORMATION
A. EMPLOYEES ' RETIREMENT SYSTEM
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 Firefighters' Pension Plan which is a single -employer pension
plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are
governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The
Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension
plans. IMRF does issue a publicly available report that includes financial statements and supplementary
information for the plan as a whole, but not for individual employers. That report can be obtained from
IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
Page 69
Packet Pg. 87
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Illinois Municipal Retirement Fund
Plan description. All employees (other than those covered by the Police and Firefighters' Pension plans)
hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as
participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois
Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2.
For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at
or after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life
in an amount equal to 1 2/3% of their final rate of earnings (average of the highest 48 consecutive months'
earnings during the last 10 years) for credited service up to 15 years and 2% for each year thereafter.
For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at
or after age 67 with 10 years of service are entitled to an annual retirement benefit, payable monthly for
life in an amount equal to 1 2/3% of their final rate of earnings (average of the highest 96 consecutive
months' earnings during the last 10 years, capped at $106,800) for credited service up to 15 years and 2%
for each year thereafter. However, an employee's total pension cannot exceed 75% of their final rate of
earnings. If an employee retires after 10 years of service between the ages of 62 and 67, and has less
than 30 years of service credit, the pension will be reduced by 1/2% for each month that the employee is
under the age of 67. If an employee retires after 10 years of service between the ages of 62 and 67, and
has between 30 and 35 years of service credit, the pension will be reduced by the lesser of 1/2% for each
month that the employee is under the age of 67 or 1/2% for each month of service credit less than 35
years. IMRF also provides death and disability benefits. These benefit provisions and all other
requirements are established by Illinois Compiled Statutes.
Plan membership. At December 31, 2014, the measurement date, membership in the plan was as
follows:
Retirees and beneficiaries
Inactive, non -retired members
Active members
Total
90
51
107
248
Contributions. As set by statute, Village employees participating in IMRF are required to contribute
4.50% of their annual covered salary. The statute requires the Village to contribute the amount necessary,
in addition to member contributions, to finance the retirement coverage of its own employees. The
Village's actuarially determined contribution rate for calendar year 2014 was 13.08% percent of annual
covered payroll. The Village also contributes for disability benefits, death benefits and supplemental
retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death
benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by
statute.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2014,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
actuarial valuation as of that date.
Page 70
Packet Pg. 88
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cunt.)
Summary of Significant Accounting Policies. For purposes of measuring the net pension
o
liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of IMRF and additions to/deductions from
IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when due
a
and payable in accordance with the benefit terms. Investments are reported at fair value.
c
0
Actuarial Assumptions. The assumptions used to measure the total pension liability in the December 31,
'
a
2014 annual actuarial valuation included a 7.49% investment rate of return, (b) projected salary increases
from 3.75% to 14.50%, including inflation, and (c) inflation of 3.50% and price inflation of 2.75%. The
retirement age is based on experience -based table of rates that are specific to the type of eligibility
condition. The tables were last updated for the 2014 valuation pursuant to an experience study of the
period 2011-2013.
Q
Actuarial cost method Entry Age Normal
v
d
Asset valuation method Market Value
o
0
Actuarial assumptions
o
Investment Rate of Return 7.49%
Ta
m
Inflation 3.50%
c
d
Salary increases 3.75% to 14.50%, including inflation
�a
Price inflation 2.75%
Mortality. For non -disabled retirees, an IMRF specific mortality table was used with fully generational
projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014
Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For
disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-
2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled Retirees
Mortality Table applying the same adjustment that were applied for non -disabled lives. For active
members, an IMRF specific mortality table was used with fully generational projection scale MP-2014
(base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table
with adjustments to match current IMRF experience.
Page 71
Packet Pg. 89
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Long -Term Expected Real Rate of Return. The long-term expected rate of return on pension plan
investments was determined using an asset allocation study in which best -estimate ranges of expected
future real rates of return (net of pension plan investment expense and inflation) were developed for each
major asset class. These ranges were combined to produce long-term expected rate of return by the
target asset allocation percentage and by adding expected inflation. The target allocation and best
estimates of arithmetic and geometric real rates of return for each major asset class are summarized in
the following table:
Asset Class
Projected Returns/Risks
Target One Year Ten Year
Allocation Arithmetic Geometric
Equities
63.20%
9.15%
7.60%
International Equities
2.60%
9.80%
7.80%
Fixed income
23.50%
3.05%
3.00%
Real estate
4.30%
7.35%
6.15%
Alternatives
4.50%
Private equity
13.55%
8.50%
Hedge funds
5.55%
5.25%
Commodities
4.40%
2.75%
Cash equivalents
1.90%
2.25%
2.25%
Discount rate. The discount rate used to measure the total pension liability for IMRF was 7.49%. The
discount rate calculated using the December 31, 2013 measurement date was 7.50%. The projection of
cash flows used to determine the discount rate assumed that member contributions will be made at the
current contribution rate and that Village contributions will be made at rates equal to the difference
between actuarially determined contribution rates and the member rate. Based on those assumptions, the
fiduciary net position was projected not to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on investments of 7.50% was
blended with the index rate of 3.56% for tax exempt 20-year general obligation municipal bonds with an
average AA credit rating at December 31, 2014 to arrive at a discount rate of 7.49% used to determine the
total pension liability. The year ending December 31, 2086 is the last year in the 2015 to 2114 projection
period for which projected benefit payments are fully funded.
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to
changes in the discount rate. The table below presents the pension liability of the Village calculated using
the discount rate of 7.49% as well as what the net pension liability/(asset) would be if it were to be
calculated using a discount rate that is 1 percentage point lower (6.49%) or 1 percentage point higher
(8.49%) than the current rate:
Current
1 % Decrease Discount Rate 1 % Increase
Total pension liability $ 62,091,898 $ 54,600,269 $ 48,460,300
Plan fiduciary net pension 48,803,503 48,803,503 48,803,503
Net pension liability/(asset) $ 13,288,395 $ 5,796,766 $ (343,203)
Page 72
Packet Pg. 90
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset). The Village's changes in net pension liability/(asset) for the
calendar year ended December 31, 2014 was as follows:
Balances at December 31, 2013
Service cost
Interest on total pension liability
Differences between expected and actual
experience of the total pension liability
Change of assumptions
Benefit payments, including refunds of
employee contributions
Contributions - employer
Contributions - employee
Net investment income
Other (net transfer)
Balances at December 31, 2014
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset) (a)
(a) (b) -(b)
$ 51,366,296 $ 47,764,745 $ 3,601,551
964,574 - 964,574
3,808,085 - 3,808,085
(1,126,970) - (1,126,970)
1,736,515
(2,148,231)
$ 54,600,269
(2,148,231)
1,071,994
369,278
2,892,087
(1,146,370)
$ 48,803,503
1,736,515
(1,071,994)
(369,278)
(2,892,087)
1,146, 370
$ 5,796,766
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions. For the year ended December 31, 2015, the Village recognized pension expense of
$2,291,785. The Village reported deferred outflows and inflows of resources related to pension from the
following sources:
Difference between expected and actual experience
Assumption changes
Net difference between projected and actual earnings on pension
plan investments
Contributions subsequent to the measurement date
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 885,255
1,364,064
496,615
1,052,666
$ 2,913,345 $ 885,255
Page 73
Packet Pg. 91
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amount reported as deferred outflows resulting from contributions subsequent to the measurement
date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year
ending December 31, 2015. The remaining amounts reported as deferred outflows and inflows of
resources related to pensions ($975,424) will be recognized in pension expense as follows:
Year Ending December 31, Village
2015
2016
2017
2018
Total
Police Pension
$ 254,890
254,890
254,890
210,754
$ 975,424
Plan description. Police sworn personnel are covered by the Police Pension Plan, which is a defined
benefit single -employer pension plan. Although this is a single employer pension plan, the defined benefits
and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS
5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension
trust fund.
As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death
and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1,
2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension
Fund as provided for in Illinois Compiled Statutes.
Tier 1- Covered employees attaining the age of 50 or more with 20 or more years of creditable service are
entitled to receive an annual retirement benefit of one half of the salary attached to the rank on the last
day of service, or for one year prior to the last day, whichever is greater. The pension shall be increased
by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of
75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retire
at or after age 60 and receive a reduced retirement benefit. The monthly pension of a police officer who
retired with 20 or more years of service after January 1, 1977 shall be increased annually, following the
first anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the original
pension and 3% compounded annually thereafter.
Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are
entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable
service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%
of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50
and receive a reduced retirement benefit. The monthly pension of a police officer shall be increased
annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of
the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one half the
annual unadjusted percentage increase in the CPI, whichever is less.
Page 74
Packet Pg. 92
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Plan membership. At December 31, 2015, the Police Pension membership consisted of:
Retirees and beneficiaries
Inactive, non -retired members
Active members
Total
46
4
61
111
Contributions. Covered employees are required to contribute 9.91 % of their base salary to the Police
Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The Village is required to
contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled
actuary. Effective January 1, 2011 the Village's contributions must accumulate to the point where the past
service cost for the Police Pension Plan is 90% funded by the year 2040. The Village's actuarially
determined contribution rate for the fiscal year ending December 31, 2015 was 37.50% of annual covered
payroll.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2015,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
annual actuarial valuation as of that date.
Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are
prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in
which contributions are due. The Village's contributions are recognized when due and a formal
commitment to provide the contributions are made. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which
approximated fair value. Investments that do not have an established market are reported at estimated
fair values.
Page 75
Packet Pg. 93
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as
o
of December 31, 2015 using the following actuarial methods and assumptions:
Actuarial cost method
Entry Age Normal
c
d
Asset valuation method
Market Value
a
Actuarial assumptions
L
°
Interest rate
6.81%
a
Inflation
2.50%
Projected salary increases
3.50%
Cost -of -living adjustments
Tier 1 - 3.00%
LL
Tier 2 - 2.00%
Q
Mortality rates were based on the L&A 2016 Illinois Police Mortality Table. The actuarial assumptions
were based on the results of an actuarial assumption study conducted by Lauterbach & Amen, LLP in
2016.
Long-term expected real rate of return. See Note I. D. 1 for Police Pension Fund investment policy,
including target allocations and long-term expected real rate of return.
Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan
was 6.81 %, the same as the prior valuation. The projection of cash flows used to determine the discount
rate assumed that member contributions will be made at the current contribution rate and that Village
contributions will be made at rates equal to the difference between actuarially determined contribution
rates and the member rate. Based on those assumptions, the Plan's fiduciary net position was projected
to be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on Plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability to changes in
the discount rate. The table below presents the pension liability of the Village calculated using the
discount rate of 6.81 % as well as what the net pension liability would be if it were to be calculated using
a discount rate that is 1 percentage point lower (5.81 %) or 1 percentage point higher (7.81 %) than the
current rate:
Current
1 % Decrease Discount Rate 1 % Increase
Total pension liability $ 102,777,674 $ 88,992,906 $ 77,810,721
Plan fiduciary net position 56,384,953 56,384,953 56,384,953
Net pension liability $ 46,392,721 $ 32,6073953 $ 21,425,768
Page 76
Packet Pg. 94
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset). The Village's changes in net pension liability/(asset) for the
calendar year ended December 31, 2015 was as follows:
Balances at January 1, 2015
Service cost
Interest on total pension liability
Differences between expected and actual
experience of the total pension liability
Change of assumptions
Benefit payments, including refunds of employee
contributions
Contributions - employer
Contributions - employee
Net investment income
Administration
Balances at December 31, 2015
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/Asset
(a) (b) (a) - (b)
$ 81,341,993 $ 56,254,452 $ 25,087,541
1,386,660 - 1,386,660
5,438,273 - 5,438,273
(1,015,708) - (1,015,708)
4,811,344 - 4,811,344
(2,969,657)
$ 88,992,905
(2,969,657)
2,284,315
669,077
186,635
(39,870)
$ 56,3843952
(2,284,315)
(669,077)
(186,635)
39,870
$ 32,607,953
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions. For the year ended December 31, 2015, the Village recognized pension expense of
$2,247,587. The Village reported deferred outflows and inflows of resources related to pension from the
following sources:
Difference between expected and actual experience
Assumption changes
Net difference between projected and actual earnings on pension
plan investments
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 848,925
4,021,303
2,999,262
$ 7,020,565 $ 848,925
Page 77
Packet Pg. 95
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($6,171,640)
will be recognized in pension expense as follows:
Year Ending December 31,
2016
2017
2018
2019
2020
Thereafter
Total
Firefighters' Pension
Amount
$ 1,373,074
1,373,074
1,373,074
1,373,072
623,258
56,088
$ 6,171,640
Plan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined
benefit single -employer pension plan. Although this is a single employer pension plan, the defined benefits
and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS
5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension
trust fund.
As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement
benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for
employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is
a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes.
Tier 1- Covered employees attaining the age of 50 or more with 20 or more years of creditable service are
entitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank held
in the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5%
of such monthly salary for each additional month over 20 years of service through 30 years of service to a
maximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years of
credited service may retire at or after age 60 and receive a reduced retirement benefit. The monthly
pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be
increased annually, following the first anniversary date of retirement and paid upon reaching at least the
age 55, by 3% of the original pension and 3% compounded annually thereafter.
Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are
entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable
service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%
of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50
and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually
on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the
pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase in the CPI, whichever is less.
Page 78
Packet Pg. 96
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Plan membership. At December 31, 2015, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries
Inactive, non -retired members
Active members
Total
33
1
55
Contributions. Participants contribute a fixed percentage of their base salary to the plans. At December
31, 2015, the contribution percentage was 9.455%. If a participant leaves covered employment with less
than 20 years of service, accumulated participant contributions may be refunded without accumulated
interest. The Village is required to contribute the remaining amounts necessary to finance the plans as
actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village's contributions must
accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90% funded by
the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December
31, 2015 was 40.07% of annual covered payroll.
Net pension liability/(asset). The net pension liability/(asset) was measured as of December 31, 2015,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
annual actuarial valuation as of that date.
•
Summary of significant accounting policies. The financial statements of the Firefighters' Pension Plan
are prepared using the accrual basis of accounting. Plan member contributions are recognized in the
period in which contributions are due. The Village's contributions are recognized when due and a formal
commitment to provide the contributions are made. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which
approximated fair value. Investments that do not have an established market are reported at estimated
fair values.
Page 79
Packet Pg. 97
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as
o
of December, 2015 using the following actuarial methods and assumptions:
Actuarial cost method
Entry Age Normal
c
d
Asset valuation method
Market Value
a
Actuarial assumptions
L
°
Interest rate
7.00%
a
Inflation
3.00%
Projected salary increases
5.25%
Cost -of -living adjustments
Tier 1 - 3.00%
LL
Tier 2 - 2.00%
Q
Mortality rates were based on the L&A 2016 Illinois Firefighters Mortality Table. The actuarial
assumptions were based on the results of an actuarial assumption study conducted by Lauterbach &
Amen, LLP in 2016.
Long-term expected real rate of return. See Note I. D. 1 for Firefighters' Pension Fund investment
policy including target allocation and long-term expected real rate of return.
Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension
Plan was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the
discount rate assumed that member contributions will be made at the current contribution rate and that
Village contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, the Plan's fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on Plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability to changes in
the discount rate. The table below presents the pension liability of the Village calculated using the
discount rate of 7.00% as well as what the net pension liability would be if it were to be calculated using
a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the
current rate:
Current
1 % Decrease Discount Rate 1 % Increase
Total pension liability $ 79,990,118 $ 69,082,934 $ 60,228,179
Plan fiduciary net position 50,348,164 50,348,164 50,348,164
Net pension liability $ 29,641,954 $ 18,7343770 $ 9,880,015
Page 80
Packet Pg. 98
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset). The Village's changes in net pension liability/(asset) for the
calendar year ended December 31, 2015 was as follows:
Balances at January 1, 2015
Service cost
Interest on total pension liability
Differences between expected and actual
experience of the total pension liability
Change of assumptions
Benefit payments, including refunds of employee
contributions
Contributions - employer
Contributions - employee
Net investment income
Administration
Balances at December 31, 2015
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/Asset
(a) (b) (a) - (b)
$ 65,477,594 $ 49,156,718 $ 16,320,876
1,179,270 - 1,179,270
4,508,473 - 4,508,473
(1,080,688) - (1,080,688)
1,139, 953 - 1,139, 953
(2,141,668)
$ 69,082,934
(2,141,668)
2,202,138
524,714
654,625
(48,363)
$ 50,3483164
(2,202,138)
(524,714)
(654,625)
48,363
$ 18,734,770
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions. For the year ended December 31, 2015, the Village recognized pension expense of
$2,335,501. The Village reported deferred outflows and inflows of resources related to pension from the
following sources:
Difference between expected and actual experience
Assumption changes
Net difference between projected and actual earnings on pension
plan investments
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 950,170
1,002,277
2,228,404
$ 3,230,681 $ 950,170
Page 81
Packet Pg. 99
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($2,280,511)
will be recognized in pension expense as follows:
Year Ending December 31,
2016
2017
2018
2019
2020
Thereafter
Total
PENSION SEGMENT INFORMATION
Fiduciary Net Position
Assets
Cash
Investments
U.S. treasuries
U.S. agencies
Mutual funds - other than bond funds
Equity securities
Municipal bonds
Corporate bonds
Receivables
Interest
Prepaid items
Due from primary government
Total Assets
Liabilities
Accounts payable
Due to primary government
Total Liabilities
Net Position
Held in trust for pension benefits
Amount
$ 564,259
564,259
564,259
564,259
7,158
16,317
$ 2,280,511
Pension Trust
Police Firefighters'
Pension Pension Total
$ 4,099,718 $ 484,844 $ 4,584,562
8,022,404
3,213,104
11,235,508
3,767,589
15,401,017
19,168,606
5,334,653
27,925,070
33,259,723
26,445,824
-
26,445,824
-
3,203,140
3,203,140
8,783,622
-
8,783,622
49,521
133,258
182,779
3,297
2,081
5,378
15,821
20,345
36,166
56,522,449
50,382,859
106,905,308
52,868
34,388
87,256
84,629
307
84,936
137,497
34,695
172,192
$ 56,384,952 $ 50,348,164 $ 106,733,116
Page 82
Packet Pg. 100
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in Plan Net Position
Additions
Contributions
Employer
Plan members
Total Contributions
Investment Income
Net appreciation in fair value of investments
Interest
Total Investment income
Less investment income
Net investment income
Total Additions
Deductions
Administration
Pension benefits and refunds
Total Deductions
Net change in net position
Net position, beginning of year
Net position, end of year
B. RISK MANAGEMENT
Pension Trust
Police Firefighters'
Pension Pension Total
$ 2,284,315
$ 2,202,138
$ 4,486,453
669,077
524,714
1,193,791
2,953,392
2,726,852
5,680,244
(141,113)
209,298
68,185
510,436
569,857
1,080,293
369,323
779,155
1,148,478
182,688
124,530
307,218
186,635
654,625
841,260
3,140,027
3,381,477
6,521,504
39,870
48,363
88,233
2,969,657
2,141,668
5,111,325
3,009,527
2,190,031
5,199,558
130,500
1,191,446
1,321,946
56,254,452
49,156,718
105,411,170
$ 56,384,952
$ 50,348,164
$ 106,733,116
The Village is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. The Village participates in
a public entity risk pool called the Intergovernmental Risk Management Agency (IRMA) to provide
coverage for losses from torts; theft of, damage to and destruction of assets; errors and omissions;
natural disasters; and injuries to the Village's employees. The Village purchases commercial insurance
coverage for health and related benefits.
Page 83
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2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
B. RISK MANAGEMENT (cont.)
Public Entity Risk Pool o
�a
IRMA
d
d
L
The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an a
6.
organization of municipalities and special districts in Northeastern Illinois that have formed an association o
under the Illinois Intergovernmental Co -operations Statute to pool their risk management needs. The
agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and a
workers' compensation claim administration/litigation management services; unemployment claim
It
administration; extensive risk management/loss control consulting and training programs; and a risk
information system and financial reporting service for its members.
The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in
appropriate funds. Each member assumes the first $2,500 of each occurrence, and IRMA has a mix of
self-insurance and commercial insurance at various amounts above that level.
Each member appoints one delegate, along with an alternate delegate, to represent the member on the
Board of Directors. The Village does not exercise any control over the activities of IRMA beyond its
representation on the Board of Directors.
Initial contributions are determined each year based on the individual member's eligible revenue as
defined in the bylaws of IRMA and experience modification factors based on past member loss
experience. Members have a contractual obligation to fund any deficit of IRMA attributable to any
membership year during which they were a member. Supplemental contributions may be required to fund
these deficits.
C. COMMITMENTS AND CONTINGENCIES
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting
Standards Board pronouncements are met. The liability and expenditure for claims and judgments are
only reported in governmental funds if it has matured. Claims and judgments are recorded in the
government -wide statements and proprietary funds as expenses when the related liabilities are incurred
Page 84
Packet Pg. 102
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
D. JOINT VENTURES
Solid Waste Agency of Northern Cook County (SWANCC)
o
�a
The Village is a member of the Solid Waste Agency of Northern Cook County (the Agency), which
consists of 23 municipalities. The Agency is a municipal corporation and public body politic and corporate
established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act
a
of the State of Illinois, as amended (the Act). The Agency is empowered under the Act to plan, construct,
c
finance, operate and maintain a solid waste disposal system to serve its members.
Q
The Agency is governed by a Board of Directors, which consists of one appointed Mayor or President from
each member municipality. Each Director has an equal vote. The officers of the Agency are appointed
by the Board of Directors. The Board of Directors determines the general policy of the Agency, makes all
appropriations, approves contracts, adopts resolutions providing for the issuance of bonds or notes by the
Agency, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as
LL
may be prescribed in the Agency Agreement or the by-laws.
tai
The Executive Committee of the Agency consists of seven members elected by the Board of Directors.
Each member is entitled to one vote on the Executive Committee. The Executive Committee may take
any action not specifically reserved to the Board of Directors by the Act, the Agency Agreement or the
Bylaws.
The Agency covenants to establish fees and charges sufficient to provide revenues to meet all its
requirements.
The Agency has entered into Solid Waste Disposal Contracts with the member municipalities. The
Contracts are irrevocable and may not be terminated or amended except as provided in the Contract.
Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum
annual cost of the System. The minimum annual cost includes operation and maintenance of the
System as well as project costs.
The obligation of the Village to make all payments as required by this Contract is unconditional and
irrevocable, without regard to performance or nonperformance by the Agency of its obligations under this
Contract.
The payments required to be made by the Village under this Contract shall be required to be made solely
from revenues to be derived by the Village from the operation of the Village's System. The Village is not
prohibited by the Contract from using any other available funds to make the payments required by the
Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any
statutory or constitutional limitation.
In accordance with the joint venture agreement, the Village remitted $702,105 to SWANCC for the year
ended December 31, 2015.
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Packet Pg. 103
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
D. JOINT VENTURES (cont.)
The Village has committed to make payments to the Solid Waste Agency of Northern Cook County. The
Village has committed to pay approximately $1,000,000 annually. This amount has been calculated using
the Village's current allocation percentage of 6.37%. In future years, this allocation percentage will be
subject to change.
Complete financial statements for SWANCC can be obtained from the Agency's administrative office at
2700 Patriot Boulevard, Suite 110, Glenview, Illinois 60026.
Northwest Water Commission (NWWC)
The Village is a member of the Northwest Water Commission (the Commission), which consists of four
municipalities. The Commission is a municipal corporation and public body politic and corporate
established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act
of the State of Illinois, as amended (the Act). The Commission is empowered under the Act to plan,
construct, improve, extend, acquire, finance, operate and maintain a water supply system to serve its
members and other potential water purchasers.
The members form a contiguous geographic service area which is located northwest of downtown
Chicago. Under the Commission Agreement, additional members may join the Commission upon the
approval of each member.
The Commission is governed by a Board of Commissioners, which consists of one Village Manager
from each member municipality. Each Commissioner has an equal vote. The officers of the
Commission are appointed by the Board of Commissioners. The Board of Commissioners determines
the general policy of the Commission, makes all appropriations, approves contracts for sale or purchase
of water, adopts resolutions providing for the issuance of bonds or notes by the Commission, adopts by
laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in
the Commission Agreement or the by-laws.
The Commission has entered into Water Supply Contracts with the four member municipalities for a term
of 40 years, extending to 2025. The Contracts are irrevocable and may not be terminated or amended
except as provided in the Contract. Each member is obligated, on a "take or pay" basis, to purchase or in
any event to pay for a minimum annual quantity of water.
The Commission has entered into an agreement with the City of Evanston under which the City has
agreed to sell quantities of lake water sufficient to supply the projected water needs of the Commission
through the year 2025.
The obligation of the Village to make all payments as required by this Contract is unconditional and
irrevocable, without regard to performance or nonperformance by the Commission of its obligations under
this Contract.
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Packet Pg. 104
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
D. JOINT VENTURES (cont.)
The payments required to be made by the Village under this Contract shall be required to be made solely o
from revenues to be derived by the Village from the operation of the Village's System. The Village is not
prohibited by the Contract from using any other available funds to make the payments required by the
contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any
statutory or constitutional limitation. a
L
The obligation of the Village to make payments required by this Contract from revenues of the Village's
System shall be payable from the operation and maintenance account of the Village's Water and '
Sewerage Fund and from all other accounts of the Village's Water and Sewerage Fund in which there are a
available funds.
In accordance with the joint venture agreement, the Village remitted $1,671,152 to NWWC for the year
ended December 31, 2015. The Village's equity interest in NWWC was $6,904,375 at December 31, LL
2015. The Village's net investment and its share of the operating results of NWWC are recorded in the cap
Village's Water and Sewerage Fund.
The Village has committed to retire a portion of the outstanding debt of the Northwest Water Commission
of approximately $3 million. These amounts have been calculated using the Village's current allocation
percentage of 18.45%. In future years, this allocation percentage will be subject to change.
Complete financial statements for NWWC can be obtained from the Commission's administrative office at
1525 North Wolf Road, Des Plaines, Illinois 60016.
E. OTHER POSTEMPLOYMENT BENEFITS
The Village administers a single -employer defined benefit healthcare plan The (the Village of Buffalo
Grove Group Health Plan (the plan) provides for eligible retirees and their spouses through the Village's
which covers both active and retired members. Benefit provisions are established through and state that
eligible retirees and their spouses at established contribution rates.
Contribution requirements are established through personnel policy guidelines and may be amended by
the action of the governing body. The plan may be amended by the Village Board and is detailed in the
"Plan Document and Summary Plan Description." The required contribution is based on projected pay-as-
you-go financing requirements. For fiscal year 2015, the Village contributed $358,605 to the Plan. Plan
members receiving benefits contributed $391,140 through their required contribution of $614 per month
for retiree only coverage and $1,241 per month for retiree and spouse coverage.
Page 87
Packet Pg. 105
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
E. OTHER POSTEMPLOYMENT BENEFITS (cont.)
The Village's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the
o
annual required contribution of the employer (ARC) The ARC represents a level of funding that, if paid on
an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the
components of the Village's annual OPEB cost for the year, the amount actually contributed to plan, and
a
changes in the Village's net OPEB obligation to the Retiree Health Plan:
c
0
Annual required contribution $ 604,694
'
a
Interest on net OPEB obligation 20,380
Adjustment to annual required contribution (16,983)
Annual OPEB cost 608,091
Contributions made (358,605)
LL
Increase in net OPEB obligation (asset) 249,486
tai
Net OPEB Obligation (Asset) - Beginning of Year 509,487
Net OPEB Obligation (Asset) - End of Year $ 758,973
The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2015 were as follows:
Percentage of
Annual OPEB
Annual OPEB
Cost
Net OPEB
Fiscal Year Ended
Cost
Contributed
Obligation
December 31, 2013
$ 269,622
81.16%
$ 425,400
December 31, 2014
302,918
72.24%
509,487
December 31, 2015
608,091
58.97%
758,973
Page 88
Packet Pg. 106
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
E. OTHER POSTEMPLOYMENT BENEFITS (cont.)
The funded status of the plan as of December 31, 2015, the most recent actuarial valuation date, was as
follows:
Actuarial accrued liability (AAL)
Actuarial value of plan assets
Unfunded Actuarial Accrued Liability (UAAL)
Funded ratio (actuarial value of plan assets/AAL)
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
$ 9,333,479
$ 9,333,479
$ 19,769,052
47%
Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing benefit costs between the employer and plan members
to that point. The methods and assumptions used include techniques that are designed to reduce short-
term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.
In the December 31, 2015 actuarial valuation, the entry age actuarial cost method was used. The actuarial
assumptions include a 4.00% investment rate of return and an annual healthcare cost trend rate of 7.30%
initially, reduced by decrements to an ultimate rate of 5.50% after 10 years. Both rates include a 3.00%
inflation assumption. The actuarial value of Retiree Health Plan assets was determined using techniques
that spread the effects of short-term volatility in the market value of investments over a three-year period.
The plan's unfunded actuarial accrued liability is being amortized as a level percentage of projected
payroll on an open basis. The amortization period at December 31, 2015, was 30 years.
Page 89
Packet Pg. 107
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
F. SUBSEQUENT EVENTS
On April 18, 2016 the Village issued general obligation corporate purpose bonds, series 2016 in the
amount of $6,280,000 with annual principal payments ranging from $300,000 to $730,000 beginning
December 30, 2017 and ending on December 30, 2031 with an interest rate of 2.00% to 3.00%. This
amount will be used to finance street improvements and related infrastructure.
G. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT -PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved the following:
> Statement No. 72, Fair Value Measurement and Application
> Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68
> Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans
> Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions
> Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and
Local Government
> Statement No. 77, Tax Abatement Disclosures
> Statement No. 78, Pensions Provided Through Certain Multiple -Employer Defined Benefit
Pension Plans
> Statement No. 79, Certain External Investment Pools and Pool Participants
> Statement No. 80, Blending Requirements for Certain Component Units - an amendment of
GASB Statement No. 14
> Statement No. 81 Irrevocable Split -Interest Agreements
> Statement No. 82, Pension Issues - an amendment of GASB Statement No. 67, No. 68, and
No. 73
When they become effective, application of these standards may restate portions of these financial
statements.
Page 90
Packet Pg. 108
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
H. PLEDGED REVENUE
The Village has pledged a portion of future sales tax revenues to local retailers. In order to increase its o
competitiveness in the marketplace by establishing a single -order acceptance point for all its credit sales,
the local retailers entered into a municipal sales tax incentive agreement with the Village, where the
Village will pay to the retailers, a portion of the municipal component of the sales tax revenue generated
by the retailers from credit sales as provided in the agreement. a
L
The first agreement commenced November 2000 (first sales tax year), was amended in March 2003 and
August 2009, and terminates in calendar year 2020. The terms of the agreement indicate that beginning in '
November 2000, the Village and the retailer shall distribute on a monthly basis, the municipal sales taxes a
resulting from taxable credit sales with single -order acceptance at the retailer's property and received by It
the Village in the following amounts:
> For the first sales tax year through calendar year 2010, 80% to the retailer and 20% to the Village,
in addition to any interest accrued on such amounts. For calendar years 2012 through 2020, 75%
to the retailer and 25% to the Village; and
> Amended in August 2009 to reflect that for calendar years 2010 through 2020, 60% to the retailer
and 40% to the Village.
Notwithstanding the terms stated above, the minimum municipal sales taxes to be retained by the Village
shall be as follows:
> No less than $500,000 annually beginning with calendar years 2011 through 2020; and
> Amended in August 2009, the minimum sales tax cap was eliminated.
In the event that the municipal sales taxes retained by the Village fell below the minimum amount noted
above, the Village was to document the difference and invoice the retailer for the said amount, which shall
be paid within 30 days of receipt.
The total municipal sales taxes remitted to the local retailer was $476,436. There was no municipal sales
taxes due to the local retailer as of December 31, 2015.
The second agreement commenced March 2011. The terms of the agreement indicate that beginning in
March 2011, the Village and the retailer shall distribute on a monthly basis, the municipal sales taxes
resulting from taxable credit sales with single -order acceptance at the retailer's property and received by
the Village in the following amounts:
> For the first sales tax year, 100% of that year's incremental municipal sales tax, declining 10%
each year until the sixth sales tax year.
Page 91
Packet Pg. 109
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
H. PLEDGED REVENUE (cunt.)
> For the seventh tax year, 50% of that year's incremental municipal sales tax will be distributed to 0
the local retailer. a
c
d
> The Village will continue the municipal tax payments for seven years through the term of the L
agreement or for an incentive of $500,000, whichever comes first. a
L
If the local retailer ceases its business on the premises within seven years of the commencement date of
the agreement, the local retailer must reimburse the Village 100% of the payments received within 90 a
days of cessation of the business. Should the local retailer relocate or conduct less than $10,000 in sales
tax in an annual period for two consecutive years, the local retailer must reimburse the Village 100% of the m
municipal tax payments received within 90 days of written demand from the Village.
The total municipal sales taxes remitted to the local retailer was $167,175. There were no municipal
sales taxes due to the local retailer as of December 31, 2015.
Page 92
Packet Pg. 110
2.B.a
It
qe
REQUIRED SUPPLEMENTARY INFORMATION `r°
Packet Pg. 111
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL
For the Year Ended December 31, 2015
Original and
Variance with
Final Budget
Actual
Final Budget
REVENUES
Charges for services
$ 1,141,138
$ 1,330,097
$ 188,959
Licenses and permits
291,600
350,042
58,442
Fines and fees
1,773,738
1,748,855
(24,883)
Property
14,034,943
14,114,565
79,622
Other taxes
9,619,268
9,712,718
93,450
Intergovernmental
10,302,182
11,256,750
954,568
Interest
60,050
25,061
(34,989)
Miscellaneous income
963,050
1,404,841
441,791
Total Revenues
38,185,969
39,942,929
1,756,960
EXPENDITURES
Current:
General government
5,013,943
4,911,919
102,024
Public safety
26,018,564
25,237,115
781,449
Public works
6,050,744
6,310,830
(260,086)
Total Expenditures
37,083,251
36,459,864
623,387
Excess of revenues over expenditures
1,102,718
3,483,065
2,380,347
OTHER FINANCING SOURCES (USES)
Sales of capital assets
-
1,601
1,601
Transfers in
852,500
1,120,393
267,893
Transfers out
(1,943,943)
(2,674,312)
(730,369)
Total Other Financing Sources (Uses)
(1,091,443)
(1,552,318)
(460,875)
Net Change in Fund Balance
$ 11,275
1,930,747
$ 1,919,472
FUND BALANCE - Beginning of Year
FUND BALANCE - END OF YEAR
21,368,147
$ 23,298,894
See independent auditors' report and accompanying notes to required supplementary information.
Page 93
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2.B.a
VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND - REGULAR PLAN
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY
AND RELATED RATIOS
Most Recent Fiscal Year
2015
Total pension liability
Service cost $ 964,574
Interest 3,808,085
c
Differences between expected and actual experience (1,126,970) 0
Changes of assumptions
1,736,515
M
Benefit payments, including refunds of member contributions
(2,148,231)
N
Net change in total pension liability
3,233,973
d
a
L
Total pension liability - beginning
51,366,296
Total pension liability - ending (a)
$ 54,600,269
a
It
Plan fiduciary net position
Employer contributions
$ 1,071,994
W
Employee contributions
369,278
v
Net investment income
2,892,087
Benefit payments, including refunds of member contributions
(2,1487231)
o
Other (net transfer)
(1,146,370)
0
0
Net change in plan fiduciary net position
1,038,758
w
0
m
Plan fiduciary net position - beginning
47,764,745
c
Plan fiduciary net position - ending (b)
$ 48,803,503
ca
Employer's net pension liability - ending (a) - (b)
$ 5,796,766 T>
M
N
T_
Plan fiduciary net position as a percentage of the total
Lo
pension liability
89.38% N
Covered -employee payroll
c
$ 8,195,678 E
Employer's net pension liability as a percentage of covered -
employee payroll
70.73% Q
Notes to Schedule:
The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
See independent auditors' report and accompanying notes to required supplementary information.
Page 94
Packet Pg. 113
2.B.a
VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND - REGULAR PLAN
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Most Recent Fiscal Year
2015
Actuarially determined contribution $ 1,071,995
Contributions in relation to the actuarially
determined contribution (1,071,994)
Contribution deficiency (excess)
$ 1
0
c
d
Covered -employee payroll
$ 8,195,678
N
d
L
a
Contributions as a percentage of covered -
L
employee payroll
13.08%
a
Notes to Schedule:
The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
LL
Q
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Valuation date:
d
0
Actuarially determined contribution rates are calculated as of December 31 each year, one year prior to the end of the
0
fiscal year in which contributions are reported.
0
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w
0
Methods and assumptions used to determine contribution rates:
o
Actuarial cost method
Entry age normal
d
Amortization method
Level percentage of payroll, closed
Remaining amortization period
29 years
Asset valuation method
5-Year Smoothed Market
Inflation
3.00%
N
Salary increases
4.40% to 16.00% including inflation
Lo
Investment rate of return
7.50%
cam•,
Retirement Age
Experience -based table of rates that are specific to the type of eligibility
c
condition
E
E
Mortality
RP-2000 CHBCA
co
Other information:
Q
There were no benefit changes during the year.
See independent auditors' report and accompanying notes to required supplementary information.
Page 95
Packet Pg. 114
2.B.a
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS
As of and for the Year Ended December 31, 2015
2014
2015
Total pension liability
Service cost
$ 1,415,171
$ 1,386,660
Interest
5,318,732
5,438,273
Difference between expected and actual experience
-
(1,015,708)
Changes in assumptions
-
4,811,344
Benefit payments, including refunds of member contributions
(2,747,592)
(2,969,657)
Net change in total pension liability
3,986,311
7,650,912
Total pension liability - beginning
77,355,682
81,341,993
Total pension liability - ending (a)
$ 81,341,993
$ 88,992,905
Plan fiduciary net position
Employer contributions $ 2,083,758 $ 2,284,315
Employee contributions 654,693 669,077
Net investment income 3,756,487 186,635
Benefit payments, including refunds of member contriutions (2,747,592) (2,969,657)
Administration (33,343) (39,870)
Net change in plan fiduciary net position 3,714,003 130,500
Plan fiduciary net position - beginning 52,540,449 56,254,452
Plan fiduciary net position - ending (b) $ 56,254,452 $ 56,384,952
Village's net pension liability - ending (a) - (b) $ 25,087,541 $ 32,607,953
Plan fiduciary net position as a percentage of the total
pension liability 69.16% 63.36%
Covered -employee payroll
$ 5,984,178 $ 6,056,962
Village's net pension liability as a percentage of covered -
employee payroll 419.23% 538.35%
Notes to Schedule:
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
See independent auditors' report and accompanying notes to required supplementary information.
Packet Pg. 115
2.B.a
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the Year Ended December 31, 2015
Actuarially determined contribution
Contributions in relation to the actuarially
determined contribution
Cotnribution deficiency (excess)
Covered -employee payroll
Contributions as a percentage of covered -
2014 2015
$ 2,359,777 $ 2,256,676
2,083,758
$ 276,019
$ 5,984,178
2,284,315
$ (27,639)
$ 6,056,962
employee payroll 34.82% 37.71 %
Notes to Schedule:
The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
Valuation date: January 1, 2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry -age
Amortization method Level percentage of payroll, closed
Remaining amortization period 30 years
Asset valuation method Market Value
Inflation 2.50%
Salary increases 4.00% to 8.67%, average, including inflation
Investment rate of return 7.00%, net of pension plan investment expense, including inflation
Mortality Mortality rates were based on L&A 2016 Illinois Police table.
See independent auditors' report and accompanying notes to required supplementary information.
c
0
co
c
d
d
a
0
Q
u.
Q
U
d
0
0
0
Ta
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Packet Pg. 116
2.B.a
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
As of December 31, 2015
2014 2015
Annual money -weighted rate of return,
net of investment expense 7.00% 0.67%
c
Notes to Schedule: °
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not `0
c
available. °
W
d
L
a
L
°
See independent auditors' report and accompanying notes to required supplementary information.
It
r
Packet Pg. 117
2.B.a
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS
As of and for the Year Ended December 31, 2015
2014 2015
Total pension liability
Service cost $ 1,378,069 $ 1,179,270
Interest Changes of benefit terms 4,304,137 4,508,473
Differences between expected and actual experience 218,159 (1,080,688)
Changes of assumptions (938,734) 1,139,953
Benefit payments, including refunds of member contributions (1,943,411) (2,141,668)
Net change in total pension liability 3,018,220 3,605,340
Total pension liability - beginning 62,459,374 65,477,594
Total pension liability - ending (a) $ 65,477,594 $ 69,082,934
Plan fiduciary net position
Employer contributions $ 2,168,844 $ 2,202,138
Employee contributions 502,014 524,714
Net investment income 3,195,916 654,625
Benefit payments, including refunds of member contriutions (1,943,409) (2,141,668)
Administration (42,368) (48,363)
Net change in plan fiduciary net position 3,880,997 1,191,446
Plan fiduciary net position - beginning 45,275,721 49,156,718
Plan fiduciary net position - ending (b) $ 49,156,718 $ 50,348,164
Village's net pension liability - ending (a) - (b) $ 16,320,876 $ 18,734,770
Plan fiduciary net position as a percentage of the total
pension liability 75.07% 72.88%
Covered -employee payroll
$ 5,224,950 $ 5,308,713
Village's net pension liability as a percentage of covered -
employee payroll 312.36% 352.91 %
Notes to Schedule:
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
See independent auditors' report and accompanying notes to required supplementary information.
Packet Pg. 118
2.B.a
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the Year Ended December 31, 2015
Actuarially determined contribution
Contributions in relation to the actuarially
determined contribution
Cotnribution deficiency (excess)
Covered -employee payroll
Contributions as a percentage of covered-
2014 2015
$ 1,884,815 $ 1,848,990
2,168,844
$ (284,029)
$ 5,224,950
2,202,138
$ (353,148)
$ 5,308,713
employee payroll 41.51 % 41.48%
Notes to Schedule:
The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
Valuation date: January 1, 2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry -age
Amortization method Level percentage of payroll, closed
Remaining amortization period 26 years
Asset valuation method Market Value
Inflation 2.50%
Salary increases 4.25% to 9.73%, average, including inflation
7.00%, net of pension plan investment expense,
Investment rate of return including inflation
Mortality Mortality rates were based on the L&A 2016 Illinois Firefighters Table.
See independent auditors' report and accompanying notes to required supplementary information.
Packet Pg. 119
2.B.a
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
As of December 31, 2015
2014 2015
Annual money -weighted rate of return,
net of investment expense 7.08% 1.32%
c
Notes to Schedule: °
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not `0
c
available. °
W
d
L
a
L
°
See independent auditors' report and accompanying notes to required supplementary information.
It
r
Packet Pg. 120
2.B.a
VILLAGE OF BUFFALO GROVE
OTHER POST EMPLOYMENT BENEFITS
SCHEDULE OF EMPLOYER CONTRIBUTIONS AND SCHEDULE OF FUNDING PROGRESS
December 31, 2015
Annual
Required
Percentage
Year Ended
Contribution
Contributed
12/31/15
$ 604,694
58.97 %
12/31 /14
300,421
72.84
12/31 /13
267,125
81.92
Actuarial
UAAL as a
Accrued
Percentage
Actuarial
Actuarial Value Liability (AAL)
Unfunded AAL
Funded Covered
of Covered
Valuation
of Assets - Entry Age
(UAAL)
Ratio Payroll
Payroll
Date
(a) (b)
(b-a)
(a/b) (c)
((b-a)/c)
12/31/15
$ - $ 9,333,479
$ 9,333,479
0.00% $ 19,769,052
47.21%
12/31/13
- 4,545,910
4,545,910
0.00% 19,787,930
22.97%
12/31/11
- 4,375,822
4,375,822
0.00% 18,846,443
23.22%
Note: In the current year, the actuarial valuation had an assumption change regarding the implicit costs for retiree
coverage. The prior report estimated the implicit liability using a factor of 40% of the premium. The current year
report revised the determination method for implicit costs to calculate gross costs on an age specific basis and
compare to the blended premium to generate implicit retiree costs. The current year report also revised the
expected increases in medical costs.
See independent auditors' report and accompanying notes to required supplementary information.
Page102
Packet Pg. 121
2.B.a
VILLAGE OF BUFFALO GROVE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December31, 2015
BUDGETARY INFORMATION
The budget data included in the financial statements represent the Village's program budget and the "c'
appropriations represent the Village's legal expenditure limit. Budgets are adopted for General, Special
Revenue, Debt Service, Capital Projects, Proprietary, Pension Trust Funds and Internal Service Funds. `0
c
All governmental fund -type budgets, pension trust fund -type budgets and internal service fund -type N
budgets are adopted on a basis consistent with GAAP. Proprietary funds are adopted on a basis other L
than GAAP in that depreciation expense, income from the joint venture, and contributions from developers a
L
are not budgeted, and principal payments on long-term debt (if any) are budgeted.
The Village Board of Trustees follows these procedures in establishing the budgetary and appropriations Q
data reflected in the financial statements:
(1) The Village Manager submits to the Board a proposed program budget for the fiscal year
commencing January 1. The program budget includes proposed expenditures and the means of financing
them. If
(2) Appropriation ordinance public hearings are conducted by the Village to obtain taxpayer
comments, and the ordinance is subsequently adopted by the Board.
(3) The program budget is legally enacted through a resolution adopted by the Board.
(4) Any expenditures that exceed the total appropriations at the fund level must be approved by the
Board of Trustees.
The Village Manager is authorized to transfer budgeted amounts between departments within any fund.
However, any modifications to the legally adopted appropriation ordinance may not exceed expenditure
limits, at the fund level, mandated by the appropriation ordinance without approval by the Board.
Appropriations, which are not expended by year-end, lapse and must be reappropriated in the following
year for the expenditure to be made. The Village does not employ the encumbrance method of
accounting to reserve net position for subsequent year expenditures.
See independent auditors' report.
Page103
Packet Pg. 122
2.B.a
SUPPLEMENTARY INFORMATION
Packet Pg. 123
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
As of December 31, 2015
ASSETS
Cash
Receivables
Property taxes
Motor fuel tax
Other
TOTAL ASSETS
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable
Total Liabilities
Deferred Inflows of Resources
Property taxes levied for a future period
Total Deferred Inflows of Resources
Fund Balances
Motor Fuel Metra Parking Street
$ 1,803,986 $ 67,943 $ - $ 53,482
- - 599,063 93,652 - - -
- - - 358,962
$ 1,897,638 $ 67,943 $ 599,063 $ 412,444
$ 132,079 $ 6,545 $ - $ 265,286
132,079 6,545 - 265,286
- - 599,063 -
- - 599,063 -
Restricted for capital project - - - 147,158
Restricted for parking lot operations - 61,398 - -
Restricted for road construction 1,765,559 - - -
Total Fund Balances 1,765,559 61,398 - 147,158
TOTAL LIABILITIES,
DEFERRED INFLOWS OF
RESOURCES, AND FUND
BALANCES $ 1,897,638 $ 67,943 $ 599,063 $ 412,444
c
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Page104
Packet Pg. 124
2.B.a
Total
Nonmajor
Governmental
Funds
$ 1,925,411
599,063
93,652
358,962
$ 2,977,088
$ 403,910
403,910
599,063
599,063
147,158
61,398
1,765,559
1,974,115
$ 2,977,088
Page105
Packet Pg. 125
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
REVENUES
Property
Intergovernmental
Charges for services
Fines and fees
Total Revenues
EXPENDITURES
Current
General government
Capital improvement
Capital Outlay
Debt Service
Principal
Interest
Total Expenditures
Excess (deficiency) of
Total
Nonmajor
Motor Fuel Metra Parking Street Governmental
Tax Lot Debt Service Maintenance Funds
$ - $ - $ 628,057 $ - $ 628,057
1,014,469 - - - 1,014,469
- 672 - - 672
- 182,657 - - 182,657
1,014,469 183,329 628,057 - 1,825,855
- 172,853 - - 172,853
1,781,905 - - - 1,781,905
- - - 81,460 81,460
- - 510,000 - 510,000
- - 296,747 - 296,747
1,781,905 172,853 806,747 81,460 2,842,965
revenues over expenditures (767,436) 10,476 (178,690) (81,460) (1,017,110)
OTHER FINANCING
SOURCES (USES)
Transfers in 859,207 - 204,176 - 1,063,383
Transfers out - (12,000) - - (12,000)
Total Other Financing
Sources (Uses) 859,207 (12,000) 204,176 - 1,051,383
Net Change in Fund
Balances 91,771 (1,524) 25,486 (81,460) 34,273
FUND BALANCES (DEFICIT)
- Beginning of Year 1,673,788 62,922 (25,486) 228,618 1,939,842
FUND BALANCES -
END OFYEAR $ 1,765,559 $ 61,398 $ - $ 147,158 $ 1,974,115
Page106
Packet Pg. 126
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX
For the Year Ended December 31, 2015
REVENUES
Intergovernmental
Total Revenues
EXPENDITURES
Current:
Public works
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCE - Beginning of Year
FUND BALANCE - END OF YEAR
Original and
Final Budget
Actual
Variance with
Final Budget
$ 1,000,000 $ 1,014,469 $ 14,469
1,000,000 1,014,469 14,469
1,679,205 1,781,905 (102,700)
1,679,205 1,781,905 (102,700)
(679,205) (767,436) (88,231)
679,205 859,207 180,002
679,205 859,207 180,002
$ - 91,771 $ 91,771
1,673,788
$ 1,765,559
Page107
Packet Pg. 127
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - METRA PARKING LOT - NONMAJOR SPECIAL REVENUE
FUND
For the Year Ended December 31, 2015
REVENUES
Charges for services
Fines and fees
Total Revenues
EXPENDITURES
Current:
General government
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCE - Beginning of Year
FUND BALANCE - END OF YEAR
Original and
Final Budget
Actual
Variance with
Final Budget
$ 1,100 $ 672 $ (428)
180,000 182,657 2,657
181,100 183,329 2,229
152,935 172,853 (19,918)
152,935 172,853 (19,918)
28,165 10,476 (17,689)
_ (12,000) (12,000)
_ (12,000) (12,000)
$ 28,165 (1,524) $ (29,689)
62,922
$ 61,398
Page108
Packet Pg. 128
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE - NONMAJOR DEBT SERVICE FUND
For the Year Ended December 31, 2015
REVENUES
Property
Total Revenues
EXPENDITURES
Debt Service
Principal
Interest
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES
Transfers in
Total Other Financing Sources
Net Change in Fund Balance
FUND BALANCE (DEFICIT) - Beginning of Year
FUND BALANCE (DEFICIT) - END OF YEAR
Original and
Final Budget
Actual
Variance with
Final Budget
$ 624,813 $ 628,057 $ 3,244
624,813 628,057 3,244
510,000 510,000 -
297,813 296,747 1,066
807,813 806,747 1,066
(183,000) (178,690) 4,310
180,000
204,176
24,176
180,000
204,176
24,176
$ (2000)
25,486
$ 28,486
(25,486)
Page109
Packet Pg. 129
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - STREET MAINTENANCE - NONMAJOR CAPITAL PROJECTS
FUND
For the Year Ended December 31, 2015
REVENUES
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES
Transfers in
Total Other Financing Sources
Net Change in Fund Balance
FUND BALANCE - Beginning of Year
FUND BALANCE - END OF YEAR
Original and
Final Budget
Actual
Variance with
Final Budget
50,000 81,460 (31,460)
50,000 81,460 (31,460)
(50,000) (81,460) (31,460)
50,000 - (50,000)
50,000 - (50,000)
$ - (81,460) $ (81,460)
228,618
$ 147,158
Page110
Packet Pg. 130
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - FACILITIES DEVELOPMENT - MAJOR CAPITAL PROJECTS
FUND
For the Year Ended December 31, 2015
REVENUES
Miscellaneous income
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
Excess (deficiency) of revenues over (under)
expenditures
OTHER FINANCING SOURCES
Transfers in
Total Other Financing Sources
Net Change in Fund Balance
FUND BALANCE (DEFICIT) - Beginning of Year
FUND BALANCE (DEFICIT) - END OF YEAR
Original and
Final Budget
Actual
Variance with
Final Budget
$ 2,722,189 $ - $ (2,722,189)
2,722,189 - (2,722,189)
3,590,611 2,746,734 843,877
3,590,611 2,746,734 843,877
(868,422) (2,746,734) (1,878,312)
868,422 1,337,984 469,562
868,422 1,337,984 469,562
$ - (1,408,750) $ (1,408,750)
(2,298,810)
$ (3,707,560)
Page111
Packet Pg. 131
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
As of December 31, 2015
ASSETS
Current Assets
Cash and equivalents
Receivables
Other
Due from other funds
Inventory
Total Current Assets
Noncurrent Assets
Capital Assets
Land
Land improvements
Buildings and improvements
Machinery, equipment and furnishings
Less: Accumulated depreciation
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities
Accounts payable
Accrued wages
Due to other funds
Other
Compensated absences
Total Current Liabilities
Noncurrent Liabilities
Long -Term Debt
Compensated absences
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
TOTAL NET POSITION
Total Nonmajor
Buffalo Grove
Refuse
Enterprise
Golf
Service
Funds
$ - $
937,750
$ 937,750
35,589
160,075
195,664
20,262
-
20,262
19,455
-
19,455
75,306
1,097,825
1,173,131
978,776
-
978,776
450,437
-
450,437
1,862,837
-
1,862,837
94,510
-
94,510
(2,257,597)
-
(2,257,597)
1,128,963
-
1,128,963
1,204,269
1,097,825
2,302,094
107,462 - 107,462
107.462 - 107.462
48,651
- 48,651
3,013
- 3,013
4,000
- 4,000
11,332
- 11,332
3,945
- 3,945
70,941
- 70,941
55,404
- 55,404
213,821
- 213,821
269,225
- 269,225
340.166
- 340.166
32,654 - 32,654
32,654 - 32,654
1,128, 963 - 1,128, 963
(190,052) 1,097,825 907,773
$ 938,911 $ 1,097,825 $ 2,036,736
Page112
Packet Pg. 132
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2015
OPERATING REVENUES
Daily greens fee and memberships
Merchandise sales
Cart, club, and other rentals
Driving range fees
SWANCC user fees
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Golf operations
Cost of sales - pro shop
Refuse operations
Depreciation
Total Operating Expenses
Operating Income (Loss)
TRANSFERS
Transfers in
Transfers out
Total Transfers
Change in Net Position
NET POSITION - Beginning of Year (as restated)
NET POSITION - END OF YEAR
Total Nonmajor
Buffalo Grove
Refuse
Enterprise
Golf
Service
Funds
$ 723,398 $
-
$ 723,398
70,320
-
70,320
222,306
-
222,306
62,116
-
62,116
-
1,039,876
1,039,876
19,698
-
19,698
1,097,838
1,039,876
2,137,714
1,286,038
-
1,286,038
49,406
-
49,406
-
702,106
702,106
32,784
-
32,784
1,368,228
702,106
2,070,334
(270,390)
337,770
67,380
218,105 - 218,105
(54,100) (75,000) (129,100)
164,005 (75,000) 89,005
(106,385) 262,770 156,385
1,045,296 835,055 1,880,351
$ 938,911 $ 1,097,825 $ 2,036,736
Page113
Packet Pg. 133
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers
Paid to suppliers for goods and services
Paid to employees for services
Net Cash Flows From Operating Activities
Buffalo Grove Refuse
Golf Service Totals
$ 1,115,564 $ 966,400 $ 2,081,964
(830,539) (702,106) (1,532,645)
(428,768) - (428,768)
(143,743) 264,294 120,551
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers in 197,843 - 197,843
Transfers (out) (54,100) (75,000) (129,100)
Net Cash Flows From Noncapital Financing Activities 143,743 (75,000) 68,743
Net Change in Cash and Cash Equivalents
CASH AND CASH EQUIVALENTS - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Flows From Operating Activities
Depreciation
Changes in assets and liabilities
Inventory
Accounts payable
Accrued wages
Accounts receivable
Compensated absences
Deferred outflows - pensions
Deferred inflows - pensions
Net pension liability
NET CASH FLOWS FROM OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
None
- 189,294 189,294
_ 748,456 748,456
$ - $ 937,750 $ 937,750
$ (270,390) $ 337,770 $ 67,380
32,784 - 32,784
1,480 -
1,480
21,589 -
21,589
(17,466) -
(17,466)
17,726 (73,476)
(55,750)
6,100 -
6,100
(49,193) -
(49,193)
32,654 -
32,654
80.973 -
80.973
$ (143,743) $ 264,294 $ 120,551
Page114
Packet Pg. 134
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
BUFFALO GROVE GOLF - NONMAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Variance with
Final Budget
Actual
Final Budget
OPERATING REVENUES
Daily greens fee and memberships
$ 729,000
$ 723,398
$ 5,602
Merchandise sales
62,130
70,320
(8,190)
Cart, club, and other rentals
237,300
222,306
14,994
Driving range fees
61,500
62,116
(616)
Miscellaneous
15,500
19,698
(4,198)
Total Operating Revenues
1,105,430
1,097,838
7,592
OPERATING EXPENSES
Golf operations 1,219,596 1,286,038 (66,442)
Cost of sales - pro shop 45,000 49,406 (4,406)
Total Operating Expenses 1,264,596 1,335,444 (70,848)
Operating Income (Loss) - Non-GAAP Budgetary
Basis
TRANSFERS
Transfers in
Transfers out
Net Transfers
Change in net position - Non-GAAP Budgetary
Basis
(159,166) (237,606) 78,440
159,166 218,105 (58,939)
- (54,100) 54,100
159,166 164,005 (4,839)
$ - $ (73,601) $ 73,601
Page115
Packet Pg. 135
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
REFUSE SERVICE - NONMAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
OPERATING REVENUES
SWANCC user fees
Total Operating Revenues
OPERATING EXPENSES
Refuse operations
Total Operating Expenses
Operating Income - Non-GAAP Budgetary Basis
TRANSFERS
Transfers out
Net Transfers
Change in net position - Non-GAAP Budgetary
Basis
Original And Variance with
Final Budget Actual Final Budget
$ 1,025,000 $ 1,039,876 $ (14,876)
1,025,000 1,039,876 (14,876)
890,000 702,106 187,894
890,000 702,106 187,894
135,000 337,770 (202,770)
(75,000) (75,000) -
(75,000) (75,000) -
$ 60,000 $ 262,770 $ (202,770)
Page116
Packet Pg. 136
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
WATER AND SEWERAGE - MAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Variance with
Final Budget
Actual
Final Budget
OPERATING REVENUES
Water and sewer charges
$ 10,437,253
$ 9,401,310
$ 1,035,943
Connection and recapture fees
26,750
94,381
(67,631)
Miscellaneous
6,000,000
5,737
5,994,263
Total Operating Revenues
16,464,003
9,501,428
6,962,575
OPERATING EXPENSES
Water operations
10,999,672
1,857,580
9,142,092
Sewer operations
5,290,847
3,824,799
1,466,048
Water purchases
1,800,000
1,671,152
128,848
Add: Capital assets capitalized
-
5,325,303
(5,325,303)
Total Operating Expenses
18,090,519
12,678,834
5,411,685
Operating Income (Loss) - Non-GAAP Budgetary
Basis
NON -OPERATING REVENUES
Interest
Total Non -Operating Revenues
Net Income (Loss) Before Transfers - Non-
GAAP Budgetary Basis
TRANSFERS
Transfers out
Net Transfers
Change in net position - Non-GAAP Budgetary
Basis
(1,626,516) (3,177,406) 1,550,890
10,250 10,112 138
10,250 10,112 138
(1,616,266) (3,167,294) 1,551,028
(945,000) (1,038,044) 93,044
(945,000) (1,038,044) 93,044
$ (2,561,266) $ (4,205.338) $ 1,644,072
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Page117
Packet Pg. 137
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
ARBORETUM GOLF - MAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Variance with
Final Budget
Actual
Final Budget
OPERATING REVENUES
Daily greens fee and memberships
$ 813,000
$ 819,935
$ (6,935)
Merchandise sales
54,000
58,073
(4,073)
Cart, club, and other rentals
248,800
252,957
(4,157)
Miscellaneous
58,100
107,125
(49,025)
Total Operating Revenues
1,173,900
1,238,090
64,190
OPERATING EXPENSES
Golf operations
1,321,050
1,384,020
(62,970)
Cost of sales - pro shop
40,000
47,978
(7,978)
Total Operating Expenses
1,361,050
1,431,998
(70,948)
Operating (Loss) - Non-GAAP Budgetary Basis
(187,150)
(193,908)
6,758
TRANSFERS
Transfers in
187,150
234,840
(47,690)
Transfers out
-
(34,828)
34,828
Net Transfers
187,150
200,012
(12,862)
Change in net position - Non-GAAP Budgetary
Basis $ - $ 6,104 $ (6,104)
Page118
Packet Pg. 138
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
As of December 31, 2015
ASSETS
Current Assets
Cash
Receivables
Total Current Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities
Accounts payable
Accrued wages
Total Current Liabilities
Noncurrent Liabilities
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions
NET POSITION
Unrestricted
TOTAL NET POSITION
Information Central
Technology Garage
Building
Maintenance Totals
$ 76,741 $ 42,473 $ 20,100 $ 139,314
76,741 42,473 20,100 139,314
76,741 42,473 20,100 139,314
- 198,317 135,562 333,879
- 198,317 135,562 333,879
76,741 33,233 13,381 123,355
- 9,240 6,719 15,959
76,741 42,473 20,100 139,314
- 394,597 269,732 664,329
- 394,597 269,732 664,329
76,741 437,070 289,832 803,643
- 60,261 41,192 101,453
_ (256,541) (175,362) (431,903)
$ - $ (256,541) $ (175,362) $ (431,903)
Page119
Packet Pg. 139
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Information Central Building
Technology Garage Maintenance Totals
OPERATING REVENUES
Internal service contributions $ 957,961 $ 1,528,484 $ 1,392,642 $ 3,879,087
Total Operating Revenues 957,961 1,528,484 1,392,642 3,879,087
OPERATING EXPENSES
Information technology
925,742
-
-
925,742
Central garage
-
1,749,950
-
1,749,950
Building maintenance
-
-
1,548,877
1,548,877
Total Operating Expenses
925,742
1,749,950
1,548.877
4,224,569
Operating Income (Loss)
32,219
(221,466)
(156,235)
(345,482)
Income (Loss) Before Transfers
32,219
(221,466)
(156,235)
(345,482)
TRANSFERS
Transfers out
(32,219)
(35,075)
(19,127)
(86,421)
Total Transfers
(32,219)
(35,075)
(19,127)
(86,421)
Change in net position
-
(256,541)
(175,362)
(431,903)
NET POSITION - Beginning of Year - - - -
NET POSITION - END OF YEAR $ - $ (256,541) $ (175,362) $ (431,903)
Page120
Packet Pg. 140
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL
INFORMATION TECHNOLOGY - INTERNAL SERVICE FUND
For the Year Ended December 31, 2015
OPERATING REVENUES
Internal service contributions
Total Operating Revenues
OPERATING EXPENSES
Information technology
Total Operating Expenses
Operating Income
TRANSFERS
Transfers out
Total Transfers
Change in net position
Original And Variance with
Final Budget Actual Final Budget
$ 1,101,570 $ 957,961 $ 143,609
1,101,570 957,961 143,609
1,101,570 925,742 175,828
1,101,570 925,742 175,828
32,219 (32,219)
- (32,219) 32,219
- (32,219) 32,219
Page 121
Packet Pg. 141
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL
CENTRAL GARAGE - INTERNAL SERVICE FUND
For the Year Ended December 31, 2015
OPERATING REVENUES
Internal service contributions
Total Operating Revenues
OPERATING EXPENSES
Central garage
Total Operating Expenses
Operating Income
TRANSFERS
Transfers out
Total Transfers
Change in net position
Original And
Variance with
Final Budget
Actual
Final Budget
$ 2,365,390
$ 1,528,484
$ 836,906
2,365,390
1,528,484
836,906
2,365,390
1,749,950
615,440
2,365,390
1,749,950
615,440
-
(221,466)
221,466
-
(35,075)
35,075
-
(35,075)
35,075
$ -
$ (256,541)
$ 256,541
Page122
Packet Pg. 142
2.B.a
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL
BUILDING MAINTENANCE - INTERNAL SERVICE FUND
For the Year Ended December 31, 2015
OPERATING REVENUES
Internal service contributions
Total Operating Revenues
OPERATING EXPENSES
Building maintenance
Total Operating Expenses
Operating Income
TRANSFERS
Transfers out
Total Transfers
Change in net position
Original And
Variance with
Final Budget
Actual
Final Budget
$ 2,042,347
$ 1,392,642
$ 649,705
2,042,347
1,392,642
649,705
2,042,347
1,548,877
493,470
2,042,347
1,548,877
493,470
-
(156,235)
156,235
-
(19,127)
19,127
-
(19,127)
19,127
$ -
$ (175,362)
$ 175,362
Page123
Packet Pg. 143
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
CASH FLOWS FROM OPERATING
ACTIVITIES
Received from interfund charges
Paid to suppliers for goods and services
Paid to employees for services
Net Cash Flows From Operating
Activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers (out)
Net Cash Flows From Noncapital
Financing Activities
Net Change in Cash and Cash
Equivalents
CASH AND CASH EQUIVALENTS - Beginning
of Year
CASH AND CASH EQUIVALENTS - END
OF YEAR
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss)
Changes in assets and liabilities
Accounts payable
Accrued wages
Deferred outflows - pensions
Deferred inflows - pensions
Net pension liability
NET CASH FLOWS FROM
OPERATING ACTIVITIES
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
Information Central Building
Technology Garage Maintenance Totals
$ 957,961
$ 1,528,484
$ 1,392,642
$ 3,879,087
0
(849,001)
(931,326)
(991,098)
(2,771,425)
a
-
(519,610)
(362,317)
(881,927)
d
108,960
77,548
39,227
225,735
a
L
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(32,219)
(35,075)
(19,127)
(86,421)
(32,219)
(35,075)
(19,127)
(86,421)
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76,741
42,473
20,100
139,314
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$ 42,473
$ 20,100
$ 139,314
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$ (156,235)
$ (345,482)
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13,381
123,355
Lo
- 9,240
6,719
15,959
N
- (198,317)
(135,562)
(333,879)
};
- 60,261
41,192
101,453
- 394,597
269,732
664,329
E
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$ 108,960 $ 77,548
$ 39,227
$ 225,735
Q
Page124
Packet Pg. 144
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
As of December 31, 2015
ASSETS
Cash
Investments
U.S. treasuries
U.S. agencies
Mutual funds - other than bond funds
Equity securities
Municipal bonds
Corporate bonds
Receivables
Interest
Prepaid items
Due from primary government
Total Assets
LIABILITIES
Accounts payable
Due to primary government
Total Liabilities
NET POSITION
Held in trust for pension benefits
Firefighters'
Police Pension Pension Totals
$ 4,099,718 $
484,844
$ 4,584,562
O
8,022,404
3,213,104
11,235,508
a
3,767,589
15,401,017
19,168,606
5,334,653
27,925,070
33,259,723
26,445,824
-
26,445,824
a
-
3,203,140
3,203,140
0
8,783,622
-
8,783,622
Q
49,521
133,258
182,779
3,297
2,081
5,378
15,821
20,345
36,166
56,522,449
50,382,859
106,905,308
U.
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52,868
34,388
87,256
d
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307
84,936
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137,497
34,695
172,192
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$ 56,384,952 $
50,348,164
$ 106,733,116
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Page125
Packet Pg. 145
2.B.a
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended December 31, 2015
ADDITIONS
Contributions
Employer
Plan members
Total Contributions
Investment income
Interest
Net appreciation in fair value of investments
Total Investment Income
Less Investment expense
Net Investment Income
Total Additions
DEDUCTIONS
Pension benefits and refunds
Administration
Total Deductions
Change in Net Position
NET POSITION - Beginning of Year
NET POSITION, END OF YEAR
Firefighters'
Police Pension Pension Total
$ 2,284,315 $
2,202,138 $
4,486,453
669,077
524,714
1,193,791
2,953,392
2,726,852
5,680,244
510,436
569,857
1,080,293
(141,113)
209,298
68,185
369,323
779,155
1,148,478
182,688
124,530
307,218
186,635
654,625
841,260
3,140,027
3,381,477
6,521,504
2,969,657
2,141,668
5,111,325
39,870
48,363
88,233
3,009,527
2,190,031
5,199,558
130,500
1,191,446
1,321,946
56,254,452 49,156,718 105,411,170
$ 56,384,952 $ 50,348,164 $ 106,733,116
Page126
Packet Pg. 146
2.B.a
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Additions
Contributions
Employer
Plan members
Total contributions
Investment Income
Interest
Net appreciation in fair value of investments
Total investment income
Less Investment expense
Net investment income
Total additions
Deductions
Pension benefits and refunds
Administration
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Original and
Variance with
Final Budget
Actual
Final Budget
$ 2,256,676
$ 2,284,315
$ (27,639)
641,947
669,077
(27,130)
2,898,623
2,953,392
(54,769)
411,519
510,436
(98,917)
3,300,644
(141,113)
3,441,757
3,712,163
369,323
3,342,840
165,000
182,688
(17,688)
3,547,163
186,635
3,360,528
6,445,786
3,140,027
3,305,759
2,885,627
2,969,657
(84,030)
40,000
39,870
130
2,925,627
3,009,527
(83,900)
$ 3,520,159
130,500
$ 3,389,659
56,254,452
$ 56,384,952
Page127
Packet Pg. 147
2.B.a
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS' PENSION FUND
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Additions
Contributions
Employer
Plan members
Total contributions
Investment Income
Interest
Net appreciation in fair value of investments
Total investment income
Less Investment expense
Net investment income
Total additions
Deductions
Pension benefits and refunds
Administration
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
Original and
Final Budget
$ 2,174,632
545,000
2,719,632
430,249
3.382.458
3,812,707
52,000
3,760,707
6,480,339
2,081,491
70,000
2,151,491
$ 4,328,848
Actual
$ 2,202,138
524,714
2,726,852
569,857
209.298
779,155
124,530
654,625
3,381,477
2,141,668
48.363
2,190,031
1,191,446
49,156,718
$ 50,348,164
Variance and
Final Budget
$ (27,506)
20,286
(7,220)
(139,608)
3.173.160
3,033,552
(72,530)
3,106,082
3,098,862
(60,177)
21,637
(38,540)
$ 3,137,402
Page128
Packet Pg. 148
2.B.a
VILLAGE OF BUFFALO GROVE
AGENCYFUND
SCHOOL AND PARK DONATIONS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended December 31, 2015
Assets
Cash & Cash Equivalents
Liabilities
Due to Other Governments
Balances
January 1
$ 408,569
$ 408,569
Additions
$ 172,009
$ 172,009
Deletions
$ 54,821
$ 54,821
Balances
December 31
$ 525,757
It
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Packet Pg. 149
2.B.a
Statistical Section
This portion of the Village of Buffalo Grove's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the Village's overall economic condition.
Contents Page
Financial Trends 130 - 139
These schedules contain trend information to help the reader understand how the Village's
financial performance and well-being have changed over time.
0
co
Revenue Capacity 140 - 150 =
d
These schedules contain information to help the reader assess the factors affecting the
Village's ability to generate its property and sales taxes. a
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Debt Capacity 151 - 155 '
Q
These schedules present information to help the reader assess the affordability of the Village's
current levels of outstanding debt and the Village's ability to issue additional debt.
Demographic and Economic Information 156 - 159
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place and to help make
comparisons over time and other governments.
Operating Information 160 - 163
These schedules contain information about the Village's operations and resources to help the
reader understand how the Village's financial information relates to the services the Village
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
Packet Pg. 150
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fiscal Years
Governmental Activities
Net Investment in Capital Assets
Restricted
Unrestricted
Total Governmental Activities Net Position
Business -type Activities
Net Investment in Capital Assets
Unrestricted
Total Business -type Activities Net Position
Primary Government
Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary Government Net Position
Net Position by Component
Last Ten Fiscal Years
2015 2014 2013 2012**
$ 50,609,420 $ 50,712,982 $ 51,011,919 $ 52,096,183
1,974,115 2,664,110 2,412,222 6,268,039
(34,637,401) 11,048,700 12,387,400 11,550,011
$ 17,946,134 $ 64,425,792 $ 65,811,541 $ 69,914,233
$ 38,372,943 $ 35,871,503 $ 35,553,648 $ 36,706,161
7,770,059 11,067,173 11,515,793 11,242,301
$ 46,143,002 $ 46,938,676 $ 47,069,441 $ 47,948,462
$ 88,982,363 $ 86,584,485 $ 86,565,567 $ 88,802,344
1,974,115 2,664,110 2,412,222 6,268,039
(26,867,342) 22,115,873 23,903,193 22,792,312
$ 64,089,136 $ 111,364,468 $ 112,880,982 $ 117,862,695
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
***Beginning in 2015, the Village implemented GASB 68 which resulted in the inclusion
of a net pension liability.
Data Source
Audited Financial Statements
Page130
Packet Pg. 151
2.B.a
2011 2010 2009 2008 2007* 2007
$ 53,362,147 $ 53,742,519 $ 54,563,385 $ 53,551,265 $ 53,702,484 $ 53,726,929
1,918,263 956,803 140,712 80,438 33,167 1,294,897
13,429,876 15,738,272 16,590,052 23,259,339 27,184,985 35,512,486
$ 68,710,286 $ 70,437,594 $ 71,294,149 $ 76,891,042 $ 80,920,636 $ 90,534,312
$ 37,807,146 $ 38,410,966 $ 39,808,889 $ 41,374,269 $ 42,667,740 $ 42,667,526
12,989,124 14,644,341 15,011,209 17,003,316 17,509,194 18,553,703
$ 50,796,270 $ 53,055,307 $ 54,820,098 $ 58,377,585 $ 60,176,934 $ 61,221,229
$ 91,169,293 $ 92,153,485 $ 94,372,274 $ 94,925,534 $ 96,370,224 $ 96,394,455
1,918,263 956,803 140,712 80,438 33,167 1,294,897
26,419,000 30,382,613 31,601,261 40,262,655 44,694,179 54,066,189
$ 119,506,556 $ 123,492,901 $ 126,114,247 $ 135,268,627 $ 141,097,570 $ 151,755,541
Page131
Packet Pg. 152
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Net Position
Last Ten Fiscal Years
Fiscal Years
Expenses
Governmental Activities
General Government
Public Safety
Public Works
Building and Grounds
Interest
Total Governmental Activities Expenses
Business -type Activities
2015 2014 2013 2012**
$ 5,885,811 $ 5,843,623 $ 6,567,545 $ 6,101,008
27,256,737
22,920,180
21,964,989
22,344,117
10,901,771
13,553,093
15,091,414
12,026,911
649,835
-
-
-
285,863
302,781
374,511
384,180
$ 44,980,017
$ 42,619,677
$ 43,998,459
$ 40,856,216
Water & Sewer
8,561,248
8,435,463
8,079,364
8,931,336
Refuse Service
702,106
803,039
902,811
874,366
Golf Courses
3,288,882
2,739,077
2,942,747
2,991,170
Total Business -type Activities Expenditures
12,552,236
11,977,579
11,924,922
12,796,872
Total Primary Government Expenses
Program Revenue
Governmental Activities
Charges for Services
General Government
Public Safety
Public Works
Operating Grants and Contributions
Total Governmental Activities Program
Revenues
Business -type activities
Charges for Services
Water & Sewer
Refuse Service
Golf Courses
Operating Grants and Contributions
Capital Grants and Contributions
Total Business -type Activities Program
Revenues
Total Primary Government Revenues
Net (Expense) Revenue
Governmental Activities
Business -type Activities
Total Primary Government Net Expense
$ 57,532,253 $ 54,597,256 $ 55,923,381 $ 53,653,088
$ 1,624,134 $
1,901,996
$ 1,207,504 $
1,226,552
1,745,580
1,623,171
1,498,819
1,283,956
61,194
88,665
82,393
118,547
1,229,028
1,285,396
1,161,509
1,178,442
4,659,936
4,899,228
3,950,225
3,807,497
9,495,691 9,076,261 8,692,812 7,464,870
1,039,876 1,044,442 1,040,878 1,050,386
2,335,928 2,257,494 1,178,368 2,221,714
- - 1,072,499 -
12,871,495 12,378,197 11,984,557 10,736,970
$ 17,531,431 $ 17,277,425 $ 15,934,782 $ 14,544,467
$ (40,320,081) $ (37,720,449) $ (40,048,234) $ (37,048,719)
319,259 400,618 59,635 (2,059,902)
$ (40,000,822) $ (37,319,831) $ (39,988,599) $ (39,108,621)
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
Page132
Packet Pg. 153
2.B.a
2011 2010 2009 2008 2007* 2007
$ 5,010,274 $ 4,769,874 $ 6,182,475 $ 5,705,497 $ 4,019,032 $ 4,686,330
22,657,643
22,312,910
22,753,590
21,115,737
15,324,061
18,951,546
11,106,433
11,081,374
10,421,659
13,222,026
8,232,685
12,479,424
248,539
194,655
334,142
379,501
216,379
529,858
$ 39,022,889
$ 38,358,813
$ 39,691,866
$ 40,422,761
$ 27,792,157 $
36,647,158
8,753,149
9,865,981
9,519,169
8,684,651
5,165,701
7,256,639
935,365
942,757
944,392
1,017,164
777,716
1,024,248
3,057,912
3,043,367
3,118,647
3,423,903
2,637,072
3,102,770
12,746,426
13,852,105
13,582,208
13,125,718
8,580,489
11,383,657
$ 51,769,315 $ 52,210,918 $ 53,274,074 $ 53,548,479 $ 36,372,646 $ 48,030,815
$ 1,240,547 $
1,195,928 $
977,464 $
1,211,188 $
1,139,242 $
1,880,714
1,404,308
1,419,761
1,563,236
1,514,666
1,050,920
1,525,943
86,421
71,606
50,709
94,670
94,670
-
1,230,387
1,253,103
1,349,044
1,307,895
950,383
1,532,557
3,961,663
3,940,398
3,940,453
4,128,419
3,235,215
4,939,214
7,782,000
9,091,520
8,008,360
7,538,534
4,799,193
6,694,051
1,036,872
1,041,661
1,004,431
923,207
704,841
991,140
2,175,418
2,088,106
2,320,247
2,356,962
2,141,860
2,323,919
-
-
-
133,599
497,875
450,000
10,994,290
12,221,287
11,333,038
10,952,302
8,143,769
10,459,110
$ 14,955,953 $ 16,161,685 $ 15,273,491 $ 15,080,721 $ 11,378,984 $ 15,398,324
$ (35,061,226) $ (34,418,415) $ (35,751,413) $ (36,294,342) $ (24,556,942) $ (31,707,944)
(1,752,136) (1,630,818) (2,249,170) (2,173,416) (436,720) (924,547)
$ (36,813,362) $ (36,049,233) $ (38,000,583) $ (38,467,758) $ (24,993,662) $ (32,632,491)
Page133
Packet Pg. 154
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Net Position (Cont.)
Last Ten Fiscal Years
Fiscal Years
2015
2014
2013
2012
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property
$ 14,742,622 $
14,554,564 $
14,504,750
$ 14,330,407
Sales and Home Rule
9,274,777
8,455,972
7,803,749
7,570,915
Income and Use
5,409,875
4,104,736
4,737,656
5,462,111
Telecommunications
1,644,309
1,679,653
1,943,811
2,200,809
Utility
2,643,642
2,819,427
2,629,997
2,510,242
Property Transfer
904,311
790,819
760,164
459,036
Other
1,092,554
1,113,831
1,052,788
1,070,409
Investment Earnings
25,061
107,765
54,522
132,436
Miscellaneous
1,458,118
1,636,721
1,506,994
1,239,906
Transfers
749,027
1,070,724
951,111
635,500
Gain on sale of assets
1,601
488
-
-
Total Government Activities
37,945,897
36,334,700
35,945,542
35,611,771
Business -type Activities
Property
-
-
-
Investment Earnings
$ 10,112
18,820
12,455
27,087
Miscellaneous
5,737
520,521
-
1,259
Transfers
(749,027)
(1,070,724)
(951,111)
(635,500)
Total Business -type Activities
(733,178)
(531,383)
(938,656)
(607,154)
Total Primary Government
$ 37,212,719
$ 35,803,317
$ 35,006,886
$ 35,004,617
Change in Net Position
Governmental Activities
$ (2,374,184)
$ (1,385,749)
$ (4,102,692)
$ (1,436,948)
Business -type Activities
(413,919)
(130,765)
(879,021)
(2,667,056)
Total Primary Government Change
in Net Position
$ (2,788,103)
$ (1,516,514)
$ (4,981,713)
$ (4,104,004)
Data Source
Audited Financial Statements
Page 134
Packet Pg. 155
2.B.a
2011
2010
2009
2008
2007*
2007
$ 14,458,248
$ 13,657,589
$ 12,504,508
$ 12,058,815
$ 706,749
$ 10,214,926
6,984,134
7,309,800
7,196,969
8,436,647
5,741,981
8,619,267
3,714,864
4,165,248
3,601,619
4,646,776
2,725,204
4,280,237
2,134,462
2,183,190
2,345,249
2,417,496
1,967,348
2,436,233
2,567,091
2,393,340
-
-
-
-
629,376
545,515
670,762
590,596
600,379
980,213
1,044,164
1,017,612
1,006,249
1,076,929
247,827
273,335
133,059
250,290
490,881
810,982
958,715
1,636,589
1,495,155
1,822,276
1,403,283
2,081,112
1,254,948
855,100
553,000
217,000
935,000
80,230
899,950
544,950
33,713,553
33,561,860
30,154,520
32,199,583
15,103,101
29,840,850
166,007
41,100
(46,666)
(374,632)
267,263
292,375 445,766
4,999
2,133
1,315
187,034
- 131,982
(553,000)
(217)
(935,000)
(80,230)
(899,950) (544,950)
(506,901)
(44,750)
(1,308,317)
374,067
(607,575) 198,805
$ 33,206,652 $ 33,517,110 $ 28,846,203 $ 32,573,650 $ 14,495,526 $ 30,039,655
$ (1,347,673) $ (856,555) $ (5,596,893) $ (4,094,759) $ (9,453,841) $ (1,867,094)
(2,259,037) (1,675,568) (3,557,487) (1,799,349) (1,044,295) (725,742)
$ (3,606,719) $ (2,532,123) L (9,154,38JO $ (5,894,10J8 $ (10,498,13J6 $ (2,592,83J6
Page 135
Packet Pg. 156
2.B.a
Fiscal Years
General Fund
Nonspendable
Restricted
Committed
Unassigned
Reserved
Unreserved
Total General Fund
All other Governmental Funds
Restricted
Assigned
Unassigned
Unreserved
Unreserved, Reported in
Special Revenue Funds
Capital Projects Funds
Total All other Governmental Funds
Total Governmental Funds
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2015 2014 2013 2012**
$ 551,242 $ 573,812 $ 562,399 $ 518,437
223,622 130,435 162,274 -
7,532,123 7,438,256 7,345,420 7,335,685
14,991,907 13,225,644 12,395,113 10,759,935
23,298,894 21,368,147 20,465,206 18,614,057
1,974,115 1,965,328
(3,707,560) (2,324,296)
1,796,997 6,112,703
101,213 144,075
(927,395) (253,826)
(1,733,445) (358,968) 970,815 6,002,952
$ 21,565,449 $ 21,009,179 $ 21,436,021 $ 24,617,009
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
Data Source
Audited Financial Statements
Page 136
Packet Pg. 157
2.B.a
2011 2010 2009 2008 2007' 2007
$ 1,031,936 $ $ $ $ $
7,948,344
9,871,895
- 1,138,273 1,248,428 1,536,571 1,846,137 1,846,137
- 17,763,849 18,307,270 22,444,819 27,556,199 27,556,199
18,852,175 18,902,122 19,555,698 23,981,390 29,402,336 29,402,336
1,918,263
146,116
(234,206) - - - -
20,271 (12,970) 33,167 486,946 486,946
2,124,937 1,252,015 1,239,501 1,942,258 1,942,258
927,626 903,315 1,911,178 2,436,815 2,436,815
1,830,173 3,072,834 2,142,360 3,183,846 4,866,019 4,866,019
$ 20,682,348 $ 21,974,956 $ 21,698,058 $ 27,165,236 $ 34,268,355 $ 34,268,355
Page 137
Packet Pg. 158
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years
Revenues
Property Taxes
Other Taxes
Licenses and Permits
Intergovernmental
Fines and Forfeitures
Charges for Services
Investment Income
Miscellaneous
Total Revenue
Expenditure
Current
General Government
Public Safety
Public Works
Capital Outlay
Debt Service
Principal
Interest
Other Charges
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Sales of fixed assets
Auction Proceeds
Bond Issued
Premium on Issuance of Debt
Transfer to Escrow Agent
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Debt Service
as a Percentage of Non -Capital Expenditures
2015 2014*** 2013 2012**
$ 14,742,622 $ 14,554,564 $ 14,504,750 $ 14,330,407
9,712,718
9,564,978
19,240,365
18,325,614
1,330,769
207,312
294,622
275,434
1,931,512
11,081,081
997,371
1,011,949
350,042
1,803,317
1,647,364
1,283,956
12,271,219
1,371,779
1,010,868
1,236,158
25,061
107,765
54,522
132,457
1,404,841
2,107,628
1,506,994
1,239,861
41,768,784
40,798,424
39,256,856
37,835,836
$ 5,084,772
5,522,549
6,465,636
5,556,101
25,237,115
22,773,535
21,805,910
21,791,218
8,092,735
10,878,278
12,178,705
9,865,723
2,828,194
2,018,451
1,347,276
1,561,904
510,000
790,000
940,000
920,000
296,747
313,665
385,395
285,420
42,049,563
42,296,478
43,122,922
39,980,366
(280,779) (1,498,054) (3,866,066) (2,144,530)
$ 3,521,760
2,552,288
2,119,313 2,621,132
(2,686,312)
(1,481,564)
(1,434,235) (1,985,632)
1,601
488
-
-
- 45
-
-
- 6,000,000
-
-
- 91,669
837,049
1,071,212
685,078 6,727,214
$ 556,270 (426,842) (3,180,988) 4,582,684
2.06% 2.68% 3.17% 3.14%
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
*** Beginning in 2014, state shared revenues have been recorded as intergovernmental revenues.
Packet Pg. 159
2.B.a
2011 2010 2009 2008 2007* 2007
$ 14,458,248 $ 13,657,589 $ 12,504,508 $ 12,058,815 $ 5,797,846 $ 10,402,764
17,074,091
17,614,705
14,806,744
17,168,444
11,282,739
16, 589,285
280,139
278,164
276,857
278,965
245,148
825,691
1,060,719
1,096,794
1,106,234
1,134,407
815,669
1,253,319
1,404,308
1,419,761
1,559,190
1,514,666
1,050,918
1,525,943
1,216,497
1,145,679
970,537
1,200,381
1,028,810
1,334,260
133,196
249,396
490,881
790,244
911,444
1,562,291
1,442,617
1,720,640
1,444,610
2,081,112
1,254,948
855,101
37,069,815
37,182,728
33,159,561
36,227,034
22,387,522
34,348,654
5,509,433
4,979,904
5,596,822
5,458,962
3,455,213
4,955,659
22,008,351
21,802,732
20,882,745
20,499,004
14,211,380
18,185,545
8,256,079
8,704,005
10,337,090
10,792,931
7,225,387
9,319,231
1,510,924
3,157,156
1,245,940
1,286,175
502,701
1,945,053
1,055,000
980,000
1,165,000
1,150,000
1,312,381
1,234,765
248,539
194,655
334,142
379,501
424,220
476,736
-
127,930
-
-
-
-
38,588,326
39,946,382
39,561,739
39,566,573
27,131,282
36,116,989
(1,518,511) (2,763,654) (6,402,178) (3,339,539) (4,743,760) (1,768,335)
1,891, 354 2,153,190 2,909,382 4,121,451 3,064,166 3,453,845
(1,338,354) (1,936,190) (1,974,382) (4,041,221) (2,164,216) (2,658,895)
52,538 103,565 - - - -
- 7,760,000 - - - -
- 178,229 - - - -
- (5,218,242) - - - -
605,538 3,040,552 935,000 80,230 899,950 794,950
(912,973) 276,898 (5,467,178) (3,259,309) (3,843,810) (973,385)
3.52% 3.19% 3.91 % 4.00% 6.52% 5.01 %
Packet Pg. 160
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Tax Levy
Residential
Commercial
Industrial
Other
Year
Property
Property
Property
Property
2015 *
$ 1,191,523,466
$ 297,951,249 $
3,377,285
$ 631,771
.-.
2014
1,120,788,463
294,457,084
9,119,150
696,091
c
0
2013
1,115,221,955
292,225,583
9,050,042
618,433
2012
1,223,424,081
296,910,564
10,221,534
617,198
2011
1,338,206,375
315,118,343
10,706,904
832,216
L
2010
1,435,137,071
325,603,742
12,723,472
636,502
M
2009
1,535,445,605
346,125,532
14,583,031
628,346
L
0
2008
1,510,235,133
353,063,176
17,166,096
630,017
2007
1,454,038,913
339,683,354
16,474,758
624,450
Q
*Cook County property class and assessed
valuation is an estimate.
Cook County information not
yet available.
Note: Total Direct Tax Rate is weighted for both Cook and Lake Counties
U.
v
d
0
/L^
V
_0
W
m
W
0
d
Data Source
Office of Cook County Clerk
Office of Lake County Clerks
iII
N
Lo
O
N
C
N
E
M
V
�0
Q
Page 140
Packet Pg. 161
2.B.a
Estimated
Estimated
Total Assessed
Total Direct
Actual Taxable
Actual Taxable
Value
Tax Rate
Value
Value (%)
$ 1,493,483,771
1.0110
$ 4,480,451,313
33.333%
1,425,060,788
1.0411
4,275,182,364
33.333%
1,417,116,013
1.0280
4,251,348,039
33.333%
1,531,173,377
0.9187
4,593,520,131
33.333%
1,664,431,364
0.8594
4,993,294,092
33.333%
1,774,100,787
0.7999
5,322,302,361
33.333%
1,896,782,514
0.7359
5,690,347,542
33.333%
1,881,094,422
0.6661
5,643,283,266
33.333%
1,810,821,475
0.6668
5,432,464,425
33.333%
Page 141
Packet Pg. 162
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Rates - Direct and Overlapping Governments
Last Ten Levy Years
Tax Levy Year
Lake County
Village of Buffalo Grove
County, including Forest Preserve
Combined School Districts (102, 125, 532)
Buffalo Grove Park District
Vernon Area Public Library
All Other (3)
Total (4)
Cook County
Village of Buffalo Grove
County, including Forest Preserve
Metropolitan Water Reclamation District
of Greater Chicago
Combined School Districts (21, 214, 512)
Buffalo Grove Park District
Indian Trails Public Library District
All Other (3)
Total (5)
Percentage Change Year -to-Year
Comparative Tax Rates
(Per $100 Assessed and Equalized Valuation)
2015 2014 2013 2012 2011
0.955
0.993
0.983
0.929
0.852
0.871
0.893
0.881
0.820
0.755
7.034
7.164
7.068
6.779
6.158
0.517
0.553
0.537
0.511
0.452
0.308
0.317
0.311
0.441
0.385
0.110
0.113
0.105
0.106
0.092
9.794
10.033
9.885
9.586
8.694
-2.38%
1.50%
3.12%
10.26%
9.33%
N/A
N/A
N/A
1.030
0.886
N/A
N/A
N/A
0.594
0.520
N/A
N/A
N/A
0.370
0.320
N/A
N/A
N/A
6.917
6.565
N/A
N/A
N/A
0.557
0.479
N/A
N/A
N/A
0.463
0.393
N/A
N/A
N/A
0.187
0.107
N/A
N/A
N/A
10.118
9.270
N/A
N/A
N/A
9.15%
12.95%
Notes:
(1) Taxes Levied on a calendar year basis for collection in the subsequent year.
(2) The Village is a home rule unit under the 1970 Illinois State Constitution and, as such, has no statutory
tax rate limitations.
(3) Includes Road and Bridge and General Assistance for the Township herein.
(4) Representative tax rates for other government units are from Vernon Township Tax Code 16- 92, which
represents the largest portion of the Village's 2013 EAV.
(5) Representative tax rates for other government units are from Cook County Tax Code 38077, which
represents the largest portion of the Village's 2012 EAV within Cook County.
N/A - Not Yet Available
Data Source
Cook County Tax Extension
Lake County Tax Extension
Page142
Packet Pg. 163
2.B.a
2010
2009
2008
2007
2006
0.797
0.750
0.665
0.649
0.633
0.703
0.664
0.652
0.645
0.654
5.610
5.301
5.102
5.066
5.318
0.425
0.351
0.370
0.380
0.403
0.315
0.301
0.222
0.219
0.317
0.102
0.094
0.092
0.092
0.094
7.952
7.461
7.103
7.051
7.419
6.58%
5.04%
0.74%
-4.96%
3.08%
0.810
0.691
0.670
0.729
0.731
0.474
0.464
0.466
0.499
0.557
0.274
0.261
0.252
0.263
0.284
5.792
5.103
5.004
5.035
5.613
0.439
0.371
0.376
0.416
0.455
0.347
0.307
0.308
0.297
0.320
0.071
0.068
0.067
0.079
0.080
8.207
7.265
7.143
7.318
8.040
12.97%
1.71 %
-2.39%
-8.98%
1.71 %
Page143
Packet Pg. 164
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
Taxpayer
Chevy Chase Business Park Ltd
Hamilton Partners(1)
Millbrook
Riverwalk II LLC
Penobscot Management LLC(3)
Riverwalk South LLC(2)
Aptakisic Creek Corporate Park, LLC
Arthur J. Rogers and Company (4)
Manufactures Life Insurance
MFREVF-Windbrooke LP
Amli at Chevy Chase, LP
First Chicago Property
Strathmore Square
LaSalle Bank
2015
Percentage
of Total
Village
Equalized
Taxable
Assessed
Assessed
Valuation
Rank
Valuation
$ 26,362,226
1
1.77%
8,949,806
2
0.599%
8,914,242
3
0.597%
8,519,221
4
0.570%
8,450,998
5
0.566%
8,099,217
6
0.542%
7,728,838
7
0.518%
7,705,919
8
0.516%
6,018,549
9
0.403%
5,901,309
10
0.395%
Note: Every effort was made to seek out and report the largest taxpayers. However, many of the
taxpayers contain multiple parcels, and it is possible that some parcels and their valuations have been
overlooked.
(1) Previously HP Riverwalk II, LLC
(2) Previously Marack and Associates
(3) Previously The Wheatlands LLC
(4) Previously American National Bank and Trust of Chicago
Data Source:
Office of the County Clerk of Cook
Office of the County Clerk of Lake
Page144
Packet Pg. 165
2.B.a
2006
Percentage
of Total
Village
Equalized
Equalized
Assessed
Assessed
Valuation
Rank
Valuation
15,021,946
2
0.90%
16,872,585
1
1.006%
11,679,495
4
0.696%
8,752,095
6
0.522%
10,105,206
5
0.602%
8,459,468
7
0.504%
14,647,024
3
0.873%
7,308,089
8
0.436%
6,878,960
9
0.410%
6,746,003
10
0.402%
Page 145
Packet Pg. 166
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Levy and Collections
Last Ten Fiscal Years
Lake County Cook County
Collected within the Collected within the
Fiscal Year After the Levy Fiscal Year After the Levy
Levy Tax Percentage Tax Percentage
Year Levied Amount of Levy Levied Amount of Levy
2014
$ 11,339,326
$ 11,322,087
99.85%
$ 3,500,800
$ 3,409,452
97.39%
2013
11,413,067
11,172,745
97.89%
3,424,515
3,381,819
98.75%
2012
11,183,780
11,105,274
99.30%
3,449,572
3,399,477
98.55%
2011
11,026,478
11,019,638
99.94%
3,279,285
3,225,824
98.37%
2010
10,911,629
10,902,757
99.92%
3,280,083
3,203,676
97.67%
2009
10,826,999
10,818,398
99.92%
3,131,059
2,992,768
95.58%
2008
9,648,296
9,639,444
99.91%
2,882,493
2,902,223
100.68%
2007
9,137,324
9,133,824
99.96%
2,937,238
2,871,428
97.76%
2006
8,389,127
8,383,359
99.93%
2,572,578
2,538,174
98.66%
2005
7,690,488
7,692,967
100.03%
2,492,952
2,454,868
98.47%
Note: Property Assessed at 33 1/3%of actual value
Property is assessed on the following basis:
Collection of prior year taxes are immaterial
Data Source:
Office of the County Clerk
Cook County - Triennial; Lake County Quadrennial (minimum)
Page146
Packet Pg. 167
2.B.a
Village Total
Percentage
Collected of Levy
14,731,539
99.27%
14,554,564
98.09% p
14,504,751
99.12%
14,245,462
99.58%
14,106,433
99.40% N
13,811,166
98.95% L
12,541,667
100.09% a
12,005,252
L
99.43% O
10,921,533
99.63%
10,147,835
99.65% Q
It
qe
Page147
Packet Pg. 168
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Sales Tax Revenue and Number of Principal Payers
Revenue By Category
Last Ten Calendar Years
General Merchandise
Food
Drinking and Eating Places
Apparel
Furniture, Households and radio
Lumber, Building and Hardware
Automotive Filling Stations
Drugs and Miscellaneous Retail
Agriculture and All Other
Manufacturers
Total Number of Payers
Village Direct Sales Tax rate
Village Home Rule Tax rate
2015 2014 2013 2012
$ 66,228
$ 9,098
1,552,983
1,080,556
1,062,206
1,023,545
94,538
104,229
521,007
356,095
1,879,818
1,666,708
918,216
947,278
1,790,381
2,349,469
2,313,502
1,693,506
351,808
270,063
$ 10,550,687 $ 9,500,547
1,043 974
1.00% 1.00%
1.00% 1.00%
$ 10,105 $
17,526
1,133,605
1,193,312
1,025,547
997,738
120,210
130,163
463,678
437,774
1,236,689
812,434
857,713
954,996
1,915,937
1,847,550
1,572,248
1,347,303
285,848
334,442
$ 8,621,580 $ 8,073,238
972 966
1.00% 1.00%
1.00% 1.00%
Note: Blank Catagories have less than four taxpayers; therefore, no data is shown to protect the
confidentiality of individual taxpayers.
* Excludes values for taxpayers in Cook County.
Data Source:
Office of the County Clerk of Cook
Office of the County Clerk of Lake
Illinois Department of Revenue
Page148
Packet Pg. 169
2.B.a
Calendar Year
2011
2010
2009
2008
2007
2006
$ 18,514
$ 3,901
$ 4,637
$ 5,819
$ 3,793 $
1,346
1,244,667
1,362,170
1,357,378
1,415,835
1,371,195
1,340,177
0
921,617
933,212
941,804
906,628
874,307
924,738
a
129,402
128,663
112,951
104,376
110,386
67,072
d
378,836
415,396
223,008
521,316
422,342
530,825
N
d
534,413
402,483
716,935
1,379,764
2,181,496
3,326,323
a
853,864
959,870
1,222,500
1,177,121
1,715,400
1,581,217
c
1,982,824
1,431,121
1,432,484
1,285,513
1,237,894
1,206,917
+=
1,193,620
1,062,978
1,257,806
2,082,955
1,777,144
1,755,277
Q
378,326
379,893
399,141
390,034
338,494
438,024
$ 7,636,083
$ 7,079,687
$ 7,668,644
$ 9,269,361
$ 10,032,451 $
11,171,916
1,286
997
975
1,002
1,196
1,311
LL
Q
U
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
d
0
1.00%
1.00%
1.00%
1.00%
1.00%
1.00%
CD
0
�a
w
0
m
w
0
d
a�
ca
M
N
T-
Lo
T-
O
N
C
N
E
t
V
�0
Q
Page149
Packet Pg. 170
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal years
Fiscal
Year
2015
2014
2013
2012
2011
2010
2009
2008
*2007
2007
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Illinois Department of Revenue
State of
Village Illinois
Direct Sales Tax
Rate Rate
1.00%
6.50%
o
1.00%
6.50%
1.00%
6.50%
d
1.00%
6.50%
aNi
L
1.00%
6.50%
a
1.00%
6.50%
o
1.00%
6.50%
1.00%
6.50%
Q
1.00%
6.50%
1.00%
6.50%
coo
Page150
Packet Pg. 171
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratio of Outstanding Debt by Type
Last Ten Years
Governmental
Activities
Business -type Activities
General General
Total
Year Obligation Obligation IEPA
Installment Primary
Ended Bonds Bonds Loan
Note Government
12/31/2015 $ 10,202,453 $ - $ 383,487
$ 1,193,599 $ 11,779,539
12/31/2014 10,730,503 - 400,519
- 11,131,022
12/31/2013 11,340,000 - 173,618
- 11,513,618
12/31/2012 12,280,000 - -
- 12,280,000
12/31/2011 7,200,000 - -
- 7,200,000
12/31/2010 8,255,000 - -
- 8,255,000
12/31/2009 6,575,000 - -
- 6,575,000
12/31/2008 7,740,000 - -
- 7,740,000
*12/31/2007 8,890,000 - -
- 8,890,000
4/30/2007 10,202,381 174,768 -
- 10,377,149
*Transitional fiscal year May 1, 2007 through December 31, 2007
December 31, 2007 represents an eight -month period.
Notes:
Details of the Village's outstanding debt can be found in the Notes to the Financial Statements.
(1) See the Schedule of Demographic and Economic Statistics for equalized assessed valuation
of property, personal income, and population data.
Page 151
Packet Pg. 172
2.B.a
Ratio of
Total
Outstanding
Debt to
Total
Equalized
Outstanding
Assessed
Debt
Valuation
Per Capita (1)
Debt
Outstanding
as a Percentage
of Personal
Income
0.26% $
283.82
0.61 %
0.26%
265.11
0.57%
0.27%
275.59
0.61 %
0.27%
290.10
0.65%
0.14%
171.79
0.39%
0.16%
198.93
0.45%
0.12%
156.62
0.36%
0.14%
183.54
0.44%
0.16%
209.47
0.51 %
0.22%
243.80
0.60%
Page152
Packet Pg. 173
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Ratio of
Total
Amounts
Outstanding
Available
Debt to
General
in Debt
Equalized
Fiscal
Obligation
Service
Assessed
Year
Bonds
Fund
Total
Valuation
2015
$ 10,202,453
$ -
$ 10,202,453
0.23%
2014
10,730,503
-
10,730,503
0.25%
2013
11,340,000
-
11,340,000
0.27%
2012
12,280,000
19,527
12,260,473
0.27%
2011
7,200,000
12,543
7,187,457
0.14%
2010
8,255,000
20,271
8,234,729
0.15%
2009
6,575,000
(12,970)
6,587,970
0.12%
2008
7,740,000
33,167
7,706,833
0.14%
2007*
8,890,000
98,332
8,791,668
0.16%
2007
10,202,381
486,946
9,715,435
0.20%
*Transitional
fiscal year May 1, 2007 through December
31, 2007
Notes:
Details of the Village's outstanding debt can be found in the Notes to the
Financial Statements.
(1) See the
Schedule of Assessed
Value and Estimated Actual Value of
Taxable Property
for property
value data.
Total
Outstanding
Debt
Per Capita (1)
$ 245.82
255.57
271.43
289.64
171.49
198.45
156.93
182.76
207.16
228.25
Page153
Packet Pg. 174
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Governmental Activities Debt
As of December 31, 2015
Percentage of
Village of
Debt Applicable
Buffalo Grove
Gross
to the Village of
Share
Debt
Buffalo Grove*
of Debt
Overlapping Debt
School Districts
Cook County School District #21
$ 40,805,000
17.78%
$ 7,255,129
Kildeeer Countryside Community Consolidated #96
720,000
38.38%
276,336
Aptakisic-Tripp Community Consolidated #102
3,780,000
76.12%
2,877,336
Lincolnshire -Half Day District #103
2,515,000
11.78%
296,267
Adlai E. Stevenson H.S. District # 125
14,355,000
37.10%
5,325,705
Wheeling Township H.S. District #214
58,210,000
3.76%
2,188,696
Harper Community College #512
170,935,000
1.68%
2,871,708
College of Lake County #532
73,135,000
5.31%
3,883,469
Total School Districts
364,455,000
24,974,646
Other Than School Districts
Lake County
103,460,000
5.04%
5,214,384
Lake County Forest Preserve
274,450,000
5.04%
13,832,280
Cook County
3,466,835,000
0.22%
7,627,037
Cook County Forest Preserve
172,535,000
0.22%
379,577
Metropolitan Water Reclamation District
2,642,374,005
0.23%
6,077,460
Buffalo Grove Park District
18,290,000
96.12%
17,580,348
Wheeling Park District
12,770,000
8.27%
1,056,079
Total Other than School Districts
6,690,714,005
51,767,165
Total Overlapping Debt
7,055,169,005
76,741,811
Total Village of Buffalo Grove Direct Debt
10,202,453
100.00%
10,202,453
Total Direct and Overlapping Debt
$ 7,065,371,453
$ 86,944,264
"Determined by ratio of assessed valuation of property subject to taxation in the Village of Buffalo Grove
to valuation of property subject to overlapping unit
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the
Village. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne
by the residents and businesses of the Village of Buffalo Grove. This process recognizes that, when considering
the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and
therefore responsible for repaying the debt, of each overlapping government.
Page154
Packet Pg. 175
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Legal Debt Margin
December 31, 2015
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as
set by the General Assembly.
Page155
Packet Pg. 176
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Demographic and Economic Statistics
Last Ten Years
Equalized
Per Capita
Fiscal
Assessed
Personal Personal
Per Capita
Unemployment
Year
Population
Valuation
EAV Income
Income
Rate
2015
41,503
E
$1,493,483,771
35,985 $1,930,595,051
46,517
1
4.2%
o
2014
41,987
E
1,425,060,788
33,941 1,939,085,621
46,183
E
5.7%
2013
41,778
E
1,456,040,510
34,852 1,882,391,346
45,057
1
6.8%
2012
42,330
E
1,531,173,377
36,172 1,891,582,681
44,687
E
7.1%
N
2011
41,911
E
1,664,431,364
39,713 1,854,311,029
44,244
E
7.6%
L
2010
41,496
A
1,774,100,787
42,754 1,817,773,776
43,806
3
8.4%
a
2009
41,980
E
1,896,782,514
45,138 1,802,196,362
42,930
E
7.8%
L
o
2008
42,170
E
1,881,094,422
44,607 1,774,145,979
42,071
E
4.8%
M
*2007
42,440
E
1,810,821,475
42,668 1,749,795,121
41,230
E
3.7%
Q
2007
42,564
E
1,677,222,407
39,405 1,719,809,470
40,405
E
3.2%
A - Actual
1- US Census
E - Estimate
2- Northern Illinois
University Estimate
3 - American Community Survey 3 Year Estimates
LL
Q
U
*Transitional fiscal year May 1, 2007 through
December 31, 2007
y
0
/L^
V
_G
W
m
W
O
d
iII
N
T-
L0
T-
O
N
Data Source: Q
U.S. Department of Labor, Bureau of Labor Statistics
U.S. Census Bureau
Page156
Packet Pg. 177
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Village Employers
Current Year and Nine Years Ago
Employer
Siemens Building Technologies
I.S.I.
ESS
Plexus Corporation
Veritas Document Solutions
Dell
Intelligent Hospital Solutions
Vapor Bus Direct
Leica Microsystems, Inc
Berry Plastics
Wes -Tech Automation Solutions
Allstate Insurance Company
Rexam
Dominicks Finer Foods (3 locations)
Harris Trust & Savings Bank
Federal Express
RG Ray
Village of Buffalo Grove
Automated Technologies
Data Source:
Village Records - Earliest available
2015 2006
Percent
Percent
of Total
of Total
Village
Village
Employees
Rank
Population
Employees
Rank
Population
1,800
1
4.34%
1,030
2
2.43%
1,200
2
2.89%
550
3
1.33%
370
4
0.89%
400
5
0.94%
300
5
0.72%
225
6
0.54%
200
7
0.48%
200
8
0.48%
200
9
0.48%
180
10
0.43%
180
10
0.43%
1,323
1
3.12%
599
3
1.41 %
483
4
1.14%
350
6
0.82%
300
7
0.71 %
250
8
0.59%
241
9
0.57%
224
10
0.53%
Page157
Packet Pg. 178
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full -Time Equivalent Employees
Last Ten Years
Function/Program
General Government
Administration
Village Managers Office
Planning
Information Technology
Finance
Building and Zoning
Public Safety
Police
Full -Time Police Officers
Community Service Officers
Civilians
Fire
Full-time Firefighters/Paramedics
Civilians
Public Works
Public Works Administration
Streets/Forestry
Water/Sewer
Central garage
Building Maintenance
Recreation
Administration
Grounds Maintenance
Recreation
Seasonal
2015 2014 2013 2012
6.0 7.5
5.5
4.5
- 1.5
1.5
1.5
- 3.0
3.5
3.5
8.0 10.0
9.5
8.5
12.0 9.5
10.0
10.0
63.0
63.0
64.0
69.0
3.0
3.0
3.0
3.0
15.0
15.0
17.0
16.5
59.0
58.0
58.0
62.0
1.0
1.5
3.5
3.5
6.0
6.0
5.0
11.0
20.0
18.5
18.5
20.0
10.0
9.0
8.0
13.0
5.5
5.5
5.5
5.5
6.0
6.0
4.0
4.0
19.5
19.5
18.0
13.5
11.5
11.5
16.0
15.0
245.5
248.0
250.5
264.0
24.5
24.5
24.5
34.0
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Village Finance Department
Page158
Packet Pg. 179
2.B.a
2011 2010 2009 2008 2007* 2007
4.0
4.0
4.5
5.0
5.0
4.5
0
1.5
1.5
1.5
1.5
1.5
1.5
a
3.5
3.5
3.5
3.5
3.5
3.5
d
8.5
8.5
9.0
9.5
9.5
9.5
10.0
10.0
10.0
10.5
10.5
10.5
a
L
Q
69.0
69.0
71.0
71.0
71.0
70.0
3.0
3.0
3.0
3.0
3.0
3.0
17.5
17.5
20.5
21.5
21.5
22.5
LL
Q
62.0
62.0
62.0
62.0
61.0
62.0
v
6.0
6.0
6.0
6.0
6.0
6.0
0
/L^
V
O
limo
12.0
12.0
14.5
14.5
14.5
w
20.0
20.0
20.0
20.0
20.0
20.o
m
13.0
13.0
13.0
14.0
14.0
14.o
c
5.5
5.5
5.5
5.0
5.0
4.0
4.0
4.0
4.0
4.0
4.0
4.0
ca
13.5
13.5
13.5
13.5
13.5
13.5
M
N
15.0
15.0
15.0
15.0
15.0
15.0
L,
T-
0
267.0
268.0
274.0
279.5
278.5
278.0
N
};
c
m
E
34.0
34.0
34.0
34.0
34.0
34.0
Q
Page159
Packet Pg. 180
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Operating Indicators
Last Ten Fiscal Years
Function/Program
General Government
Building and Zoning
Building Permits Issued
Building Inspections Conducted
Property Maintenance Inspections Conducted
Public Safety
Police
Physical Arrests
Parking Violations
Traffic Violations
DUI Arrests
Vehicle Crashes
Fire
Ambulance Calls/EMS
Service Calls
Fire Calls
Auto Aid/Mutual Aid
Public Works
Streets
Street Resurfacing (Miles)
Parks and Recreation
Park Sites
Golf Course - Combined
Golf Rounds Played - Paid
Water
New Connections (Tap-ons)
Average Daily consumption (1)
Peak Daily consumption (1)
2015 2014 2013 2012
2,582
2,833
2,651
2,206
11,625
7,074
7,456
15,858
11894
3,172
3,288
5,828
809
886
759
671
3,766
3,634
2,984
3,341
7,969
8,349
13,171
10,826
97
154
124
107
363
1,429
1,507
1,260
3,123
3,385
2,613
2,789
340
1,245
483
487
1,585
821
865
698
1,055
1,063
654
680
2.45
3.28
10.84
5.51
46
46
46
46
68,602
54,689
53,639
59,937
23
9
27
15
3.39
3.58
3.70
3.92
5.14
5.40
6.20
7.93
(1) - Millions of Gallons
*Transitional fiscal year May 1, 2007 through December 31, 2007
N/A - Not Available
Various Village Departments
Page160
Packet Pg. 181
2.B.a
2011 2010 2009 2008 2007* 2007
1,930 1,959 1,922
9,661 7,088 6,633
3,462 3,158 2,348
1,746 1,695 1,282
5,054 21,383 13,416
2,159 2,962 3,448
820
981
989
1,085
2,143
N/A
2,031
2,062
3,267
3,451
4,721
N/A
11,867
11,999
11,373
15,795
12,010
N/A
164
222
267
337
482
N/A
1,396
1,391
1,414
1,786
1,555
N/A
2,568
2,743
2,553
2,590
2,943
2,583
1,053
610
718
751
678
684
737
735
774
881
858
788
676
654
672
689
379
406
2.90
3.00
4.94
4.94
8.23
8.30
46
46
46
46
46
46
56,918
52,740
59,723
58,097
60,258
61,005
12
50
7
25
33
98
4.09
4.30
4.21
4.09
4.35
4.61
7.84
7.30
7.29
7.03
8.39
8.88
Page 161
Packet Pg. 182
2.B.a
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Asset Statistics
Last Ten Fiscal Years
Function/Program
2015
Public Safety
Police
Stations
1
Patrol Units
30
Fire
Stations
3
Fire Apparatus
20
Public Works
Streets
Street (Miles)
118.20
Streetlights
2,789
Water
Water Mains
181.14
Fire Hydrants
2,493
Wastewater
Sanitary Sewers
139.92
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Various Village Departments
2014 2013 2012
1
1
1
29
28
34
3
3
3
20
21
21
118.20
117.70
117.70
2,786
2,778
2,778
180.90
180.30
180.25
2,487
2,477
2,475
139.80
139.30
139.27
Page162
Packet Pg. 183
2.B.a
2011
2010
2009
2008
2007*
2007
1
1
1
1
1
1
36
36
36
36
36
35
3
3
3
3
3
3
21
21
21
20
20
20
117.70
117.70
117.70
117.50
117.50
117.50
2,778
2,745
2,743
2,714
2,614
2,374
180.25
179.83
179.82
180.63
179.57
178.36
2,475
2,475
2,474
2,474
2,468
2,449
139.27
139.27
139.27
139.24
139.12
138.72
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Page163
Packet Pg. 184
2.B.b
Alil[,L I; Of
Oi iFFA GI OIE
TO: Dane C. Bragg - Village Manager
Scott Anderson - Director of Finance and General Services
Michael Cipolla — Baker Tilly Virchow Krause LLP
FROM: Andrew Brown - Deputy Director of Finance
DATE: July 5, 2016
in
RE: Management Responses to Baker Tilly Management Letter FY 2015
Below are the findings of Baker Tilly Virchow Krause LLP in the 2015 fiscal year audit and staff responses.
All responses take into account current staffing levels and weigh the cost/benefit relationship of
increasing staff to address auditor findings. The draft management letter from Baker Tilly Virchow
Krause LLP is attached. The Finance Department does not anticipate any changes to this letter as we
have reviewed it in its entirety and do not intend on rebutting any of the matters that have been
identified or reported on. The full management report from Baker Tilly Virchow Krause is attached.
Material Weakness
Finding
INTERNAL CONTROL OVER FINANCIAL REPORTING
The Village's internal controls over financial reporting should be designed to prepare financial
statements in accordance with United States Generally Accepted Accounting Principles (GAAP). Material
journal entries as a result of audit procedures in the current year or subsequent discovery of material
financial reporting errors and the required correction of previously issued financial statements indicates
thatthere is a material weakness in the Village's financial reporting system.
Our audit procedures in the current year resulted in material entries to the Village's trial balances in
order to present financial statements that were reasonable in all material respects. Adjustments were
necessary to correct beginning fund balances by recording prior year audit entries, to adjust the Village's
reserve for health insurance, and adjustments to properly reflect revenue and expenditures related to
state shared roadwork projects. Through our review of internal controls, we noted that there is no
documented review of the accrual preparation and final trial balances before they are presented tothe
auditors. We recommended that the Village implement internal controls that encompass a secondary
review of year-end accrual adjustments and final trial balances by someone other than the original
preparer of the documents.
Packet Pg. 185
2.B.b
Response
At the conclusion of the audit, the Accountant and Deputy Director of Finance will review all proposed
audit adjustments with the audit team to evaluate the impact on the financial position of the Village.
Once the adjustments are agreed upon, the Finance Director will authorize the final posting to close the
fiscal year.
The Accountant will create an offsetting journal entry to the medical and dental insurance liability
account to transfer the premiums collected to the reserve for health insurance liability account as part
of the monthly close out procedure.
The Finance Department will also require more detailed reporting from public works, specifically as it
pertains to intergovernmental projects. These measures will allow the Village to assess all
recommendations made by the audit staff and ensure the accounting treatment of all transactions are
reviewed.
SIGNIFICANT DEFICIENCIES
Finding
SEGREGATION OF DUTIES
In an ideal situation, the Village would segregate the duties of authorization, bookkeeping, and custody
amongst different members of the finance department. During our review of your internal control
procedures, we noted the following items that collectively result in a significant deficiency in internal
controls.
1. Persons processing payroll should be separate from the following processes: entering new
employees into the payroll system, payroll entry (pay rates and deductions), check signing,
and check distribution. While the Village does have monitoring controls over the payroll
process,the Village should be aware that the control activities and access levels currently in
place allowfor mistakes or errors to occur without detection in a timely manner.
2. Persons processing accounts payable should be separate from those ordering and receiving
goods and run checks. While the Village does have monitoring controls over the accounts
payable process these duties should be segregated to further prevent an employee from
using Village funds to make inappropriate purchases.
Packet Pg. 186
2.B.b
During our review, we also noted that the Village began to implement additional controls in order to
reduce the payroll segregation of duties risk. Starting in November 2015, the Village began having its
Human Resources Department review and confirm that the information entered into the payroll system
(new employees, pay rates, and pay deductions) by the payroll clerk is accurate. Additionally, the Village
determined to implement printing out a payroll change report from the financial system for Human
Resources to review each pay period and sign off indicating their approval. However, the Village did not
implement this control until the beginning of FY16. This control is to mitigate the risk of the payroll clerk
not only having access to change payroll information but also having access to process payroll. As these
additional controls did not exist for the majority of the fiscal year, we are required to report the related
significant deficiencies in this report. We will include the new controls in our assessment of the Village's
internal controls related to the FY16 audit and report internal control weaknesses to the Board if
necessary. We recommend that management and the Board continue their efforts to establish
procedures which are designed to improve controls.
Response
The Village of Buffalo Grove takes segregation of duties seriously and, given the limited amount of
staffing, does its best to incorporate appropriate separation and oversight of all processes. The
significant deficiencies will be addressed in the same order as identified by Baker Tilly:
1. Payroll Processes —
When a new employee is employed by the Village of Buffalo Grove the Human Resources
Department forwards the new employee's information to the payroll clerk for processing.
The payroll clerk will send a confirmation email back to the Human Resources Department
that the task has been completed. At that time, the Human Resources Department will
review in the system the information to confirm accuracy.
On a monthly basis the Human Resources Department will audit payroll distributions
through random selections. There will be a graduated scale of how many records are
selected, and how many additional records are to be selected based on the number of
exceptions found in the sample taken.
It is time and cost effective for the Village of Buffalo Grove to print the signatures on the
payroll checks. All Village payrolls are approved by the Village Board.
Staff will continue the practice instituted in FY16 to mitigate risk of payroll errors and
incorporating Human Resources oversight of the changes made to employee payroll profiles
going forward.
Packet Pg. 187
2.B.b
2. Accounts Payable Processes -
The Village of Buffalo Grove has implemented a multi -layer approval process for all purchase
orders and invoices. This process requires multiple approvals for a purchase order and also
allows the accounts payable clerk to over see the final amount per the approval at the
invoice level. Once approved the item is included on the warrant to go before the Village
Board. After Board approval and the checks are issued and will be prepared for mailed by a
staff member other than the Account Payable Clerk. The accountant will also process the
ACH direct deposit to vendors in lieu of checks.
In closing the Village Manager, Finance Department and other department directors have bi-weekly staff
meetings to review and discuss issues/updates on department activities, staff, policy and procedures. It
is the intention of the Village of Buffalo Grove to maintain open lines of communication and develop
efficient and effective policies and procedures with all departments and employees and through these
efforts improve process and controls.
Packet Pg. 188
2.0
Information Item : Tap Room Restaurant Plan Discussion
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
Representatives from Tap Room will be in attendance to present a potential new concept that would
replace the Village Bar & Grill concept.
Trustee Liaison
Johnson
Monday, August 1, 2016
Staff Contact
Dane Bragg, Office of the Village Manager
Updated: 7/28/2016 2:29 PM
Page 1
Packet Pg. 189
2.D
Information Item : 6 Month Financial Report
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
June 30, 2016 marked the mid -point of the fiscal year. This report provides an overview of current year
performance measured against the approved Budget and makes a comparison against the previous
year?s totals. While department directors review expenditures on a monthly basis, the six month report is
an important analysis as there is time to make significant adjustments in spending and/or service delivery
to respond to an unanticipated drop in revenues or an unforeseen expenditure. If a drop in revenue is
short term, the appropriate response may be to defer capital spending and reserve transfers. If the trend
is long term then corresponding adjustment will need to be incorporated into the next year?s budget.
ATTACHMENTS:
• Six Month Report FY 2016 (DOCX)
Trustee Liaison
Johnson
Monday, August 1, 2016
Staff Contact
Scott Anderson, Finance
Updated: 7/28/2016 1:34 PM
Page 1
Packet Pg. 190
2.D.a
FROM: Scott D. Anderson, Finance Director
DATE: July 26, 2016
RE: FY 2016 BUDGET —SIX MONTH STATUS UPDATE
June 30, 2016 marked the mid -point of the fiscal year. This report provides an overview of current year
performance measured against the approved Budget and makes a comparison against the previous
year's totals. While department directors review expenditures on a monthly basis, the six month report
is an important analysis as there is time to make significant adjustments in spending and/or service
delivery to respond to an unanticipated drop in revenues or an unforeseen expenditure. If a drop in
revenue is short term, the appropriate response may be to defer capital spending and reserve transfers.
If the trend is long term then corresponding adjustment will need to be incorporated into the next
year's budget.
The total Budget for the entire Village is $74,908,609 offset by revenue expectations of $79,053,184. As
a reminder, the approximately $4.1 million dollar surplus is comprised almost entirely of additional
pension revenue that is used to address actuarially determined future pension liabilities.
Based upon a review of revenue and expenditure/expense trends the Village's overall fiscal operations
appear to be, in most line items, consistent with budget assumptions made during development of the
current budget. The Village did move to the Budget Act in FY 2016 and any excess spending over the
adopted departmental/fund budget will require an amendment.
Intuitively, one would expect that at the mid -point of the fiscal year both revenues and expenses would
be at the SO percent mark. Revenues typically hover near or above the SO percent mark while expenses
traditionally slightly lag the 50 percent mark due to the timing of invoices and payroll, December debt
service payments, and the phasing of construction and contractual payments.
General Fund Revenue Highlights
Almost 80 percent of the General Fund's revenue is comprised of five sources including, property tax,
sales tax, use tax, income tax and excise tax. There was one new source of revenue in FY 2016, Storm
Water Management Fees. Provided below is a chart of total General Fund Revenue collected to date and
a description of the major revenues.
Packet Pg. 191
2.D.a
lip u �
Property Taxes
14,550,225
7,193,699
49.44%
7,185,891
51.20%
0.11%
7,808
Base Sales Tax
5,665,000
2,911,304
51 39%
2,839,496
54 70%
2 47%
71,808
Home Rule Sales Taxes
3,748,636
1,954,540
52.14%
1,875,660
55.20%
4.04%
78,880
Income Taxes
4,628,000
2,355,574
50 90%
2,564,741
62 50%
8 88%
209 167
UseTaxes- Electricity
1,650,000
840,119
50.92%
794,932
47.50%
5.38%
45,187
Use Taxes Natural Gas
1,020,000
736,474
72 20%
834,823
83 50%
13 35%
98 349
Telecomm/Excise Taxes
1,639,327
840,119
51.25%
791,591
42.20%
5.78%
48,528
Fines and Fees
1,619,672
886,132
54.71%
815,919
46.00%
7.92%
70,213
Real Estate Transfer Tax
821,600
498,862
60 72%
359,311
45 60%
27 97%
139,551
III
Food and Beverage Tax
746,750
403,222
54.00%
354,625
45.40%
12.05%
48,597
Hotel/Motel Tax
144,200
49,271
34 17%
62,870
44 90%
27 60%
13 599 j
II
Development Fees & Permits
706,000
482,080
68.28%
535,848
75.90%
-11.15%
-53,768
Business & Liquor Licensing
277,800
182,827
65.81%
233,095
82.40%
-27.49%
-50,268
Interest Income
49,950
45,891
91 87%
20,112
33 50%
56 17%
25,779
Operating Transfers
864,000
432,000
50.00%
426,250
50.00%
1.33%
5,750
All Other Revenue
3,583,583
2,514,660
70.17%
1,185,897
49.90%
52 84%
f
1,328,763
1
Total
41,714,743
22,326,774
0
53.52/0
20,881,061
0
53.50%
0
6 48/0
1,445,713
General Fund revenues are trending at 53.52 percent surpassing last year by .2 percent in collections
and 6.5 percent or $1,445,713 in dollars. The following is a review of all major sources of revenue.
0 Property Taxes - 49.44%
Revenue to date represents the first installments of the 2015 levy extensions for both Lake and
Cook Counties. Historically, 99.8% of taxes levied are collected so it is anticipated that budget
estimates will be realized by year-end. Property taxes extended in Cook County trend higher in
the first installment as five percent is added to the previous year's extension. The second
installment trues -up the levy request for the current year.
• Combined Sales Taxes (Sales/Home Rule) — 51.69
Base Sales Tax net receipts total $2,911,304 million which represents an increase from FY 2015
of $71,808. Home -Rule Sales Tax receipts total $1,954,540 compared to $1,875,660 last year.
These receipts account for all taxable customer spending through March 2016. The largest
generators of sales tax are in manufacturing/lumber and grocery/food sales. There are two
sales tax incentives that are paid on an annual basis in the second half of the year. It is
expected that the combined revenue will meet budget.
0 Income Tax - 50.9%
Income taxes are performing at budgeted expectations. The tax grows through strong
employment numbers and corporate earnings. This revenue is distributed on a per capita
Packet Pg. 192
2.D.a
basis. The highest collection month is always in the first half of the fiscal year (May) due to
Income taxes being filed.
• Utility Use Tax (Electricity/Natural Gas) — 50.92% / 72.20%
Electricity Use Tax is at the benchmark with the higher summer usage months in the second
half of the year. Natural gas use tax is skewed due to higher usage months in the first half of
the fiscal year. Assuming no major deviation in seasonal temperatures the remainder of the
year, it is anticipated that both revenues sources will be at 100 percent of budget.
• Real Estate Transfer Tax - 60.72%
Receipts from the Real Estate Transfer Tax total $498,862 as compared to $359,311 in FY 2015.
The real estate market has improved significantly over the last three years. The budgeted
revenue anticipates about 15 percent of the revenue will be due to extraordinary
transactions (greater than $1m in sales consideration).
• Telecommunications Tax - 51.25%
Receipts from the Telecommunications Excise Tax levied at a rate of 6 percent totaled
$840,119. The revenue is up $48,528 from the previous year. A major reason for the
variance is that there was a repayment of taxes incorrectly collected by the state in 2015. The
repayment period concluded in July 2015. This revenue has plateaued after a seven year drop in
collections.
• Prepared Food and Beverage Tax - 54.0%
Revenue to date generated from the Village's 1% Prepared Food and Beverage Tax is $403,222
or $48,597 more than the previous year. Growth in this revenue was expected to match
inflation. This revenue is on target.
• Development Fees/ Permits — 68.28%
Construction and development related fees and licenses are generated in both the General
and Water Funds. This amount is skewed higher in the first half of the year due to the collection
of rental inspection fees.
• Storm Water Management Fees — 34.2%
This is a new revenue implemented for 2016. The fees charged cover the operating expenditures
of the Drainage Department and builds reserves for future capital improvements. Similar to
water billing, the benchmark will always be under the 50 percent mark due to the timing of
billing accruals. The revenue reflects only four months of billing.
Packet Pg. 193
2.D.a
Water &Sewer Fund Revenue Highlights
The following chart is the distribution of Water & Sewer Fund revenue and performance to date.
Sales of Water/ Debt Service - 32.72%
2
Revenue earned at mid -year, as anticipated, trails the benchmark due to the timing and accrual
of water sales and sanitary sewer treatment fees to be received in the second half of the fiscal c
period. While revenue reflects mid -year performance, what is not reflected is June, 2016 Cook '_
County residential, along with the May -June, 2016 Lake County revenue for residential and
commercial user/consumer rates and fees to be billed as of June 30, 2016. The performance 2
number is lower than the previous year due to $3 million budget in All Other Revenue for debt
related to the performance contractual meter replacement program. Absent those revenues, to
v
be collected in the second half of the year, the revenue is 40.59 percent of its target and in line
with historical budget performance. The village wide water consumption average in 2016 is 93.9
million gallons per month. The five year average is 92.6 million gallons, an increase of 1.3 N
percent. >_
Golf Enterprise Revenue Highlights
Buffalo Grove Golf Club:
Through June 30, 2016, a total of $448,628 in operating and non -operating revenue has been realized
against a budget of $1,248,569 amounting to 35.93 percent of budget. This compares to June 30, 2015
revenue of $443,452 or 40.1 percent of budget.
Revenues at the golf course tend to be less than the 50 percent benchmark as the strong play months
are July and August. Through the midpoint of the year 14,550 rounds have been played vs. 13,902 a
year ago (4.67 percent increase).
Packet Pg. 194
2.D.a
Arboretum Golf Club:
Arboretum Golf Club operating revenue, exclusive of equity transfers totaled $558,230 or 39.2 percent
of budget compared to the previous year's revenue of $528,361 (38.8% of budget).
Most of the difference in the percentage of budget attained is to the timing of the operating transfer.
This transfer is not made until the full year is accounted for and reviewed. To date, 12,707 rounds have
been played. At the same point last year 12,070 rounds were played (5.28 percent increase).
All (Wier a, Fund Revenues
The remaining funds revenues are listed below;
The largest variances year over year are,
Capital Projects Facilities revenue budget represents a final draw on the line of credit for the
EAB project and General Fund Transfers.
Motor Fuel revenues only reflect the allotment from the State of Illinois beginning in 2016. The
subsidy from the Home Rule Sales Taxes is now accounted for within Capital Projects -Streets.
Certain revenue, such as Inter -Fund Transfers, generally are not posted until the second half of the
period and then only based on the need of the receiving fund. All revenue categories will be m packet Pg. 195
2.D.a
closely and all efforts maximized to enhance revenue.
"metal Fend Expenditure Review
Expenditures to date total $20,432,287 or 49.03 percent of the approved budget. This compares to
$18,794,760 or 48.2 percent in FY 2015. The performance of the entire fund is on track with budgeted
expectations. The following chart depicts expenditure performance;
III ,III
f„II
uy
Personal Services
19,261,555
9,327,695
48.43%
8,681,517
46.00%
7.44%
646,178
Personal Benefits
10,393,107
4,894,119
47
09%
4,414,646
45
40%
10
86%
479,473
Operating Expenses
2,787,072
1,422,601
51.04°%
1,293,033
52.90%
10.02%
129,568
Insurance
794,769
621,634
78
22%
595,741
72
600%
4
35%
25,893
Legal Services
374,050
138,674
37.07%
154,396
40.70%
-10.18%
-15,722
Committees & Commissions
111,800
34,978
31
29%
24,681
23
20%
41
72%
10,297
Commodities
438,725
275,336
62.76%
140,136
32.40%
96.48%
135,200
Maintenance & Repair Facilities
1,416,219
724,644
51
17%
622,057
49
00%
16
49%
102,587
Maintenance&Repair -Other
56,710
-26,960
-47.54%
-1,621
-2.80%
1563.18%
-25,339
Maintenance & Repair Vehicle
1,617,351
807,046
49
90%
899,119
50
30%
10
24%
92 073
Capital Improvement - Facilities
333,500
233,384
69.98%
272,849
134.10%
-14.46%
-39,465
Capital Equipment
1,091,736
563,980
51.66%
615,859
91.70%
-8.42%
-51,879
Operating Transfer
2,080,022
974,588
46
85%
939,778
48
30°%
3
70%
34,810
1
All Other Expenses
914,260
440,569
48.19%
142,570
43.70%
209.02%
297,999
Total
41,670,875
20,432,287
49.03%
18,794,760
48.20%
8.71%
1,637,527
Personal Services / Personal Benefits - 48.43% / 47.09%
Personal Services is the single largest expense account category budgeted by the Village. In terms of
total budget, Personal Services and Benefits account for 71.17 percent of expenditures. Salary typically
trends below the 50 percent benchmark due to the timing of payrolls and the accrual of the first payroll
of the year back to the previous year. There was a 10 percent increase in the health insurance premium
in 2016 and the employee's contribution increased by 1 percent to 15 percent of the premium.
There are no specific expenditure areas of concern. Capital Equipment represents, in part, transfers
made to the capital reserve for vehicles, buildings and technology. Insurance is skewed higher as the
annual general liability/worker comp premium is paid every January. Commodities are higher than the
benchmark due to an early purchase of salt in 2016.
Packet Pg. 196
2.D.a
Water ,,g Sewer Fund E,Kpense Review
As of June 30, 2016, the Water and Sewer fund has expended 50.99 percent of its budget.
The largest notable variance is in Capital Projects -Water. The water meter replacement program was
completed in the first half of the fiscal year. The variance within operation expenses is due to the timing
of a quarterly payment to the Northwest Water Commission
Golf Enterprise Expense Review
Tota I
341,380
144,548
42.34%
175,981
32.30%
-17.86%
-31,433
96,722
49,908
51.60%
52,315
30.70%
-4.60%
-2,407
535,863
186,419
34.79%
300,688
105.70%
-38.00%
114,269
15,361
5,051
32.88%
12,765
50.30%
-60.43%
-7,714
64,000
17,397
27.18%
27,180
20.90%
-35.99%
-9,783
92,037
48,777
53.00%
0
0.00%
0.00%
48,777
0
0
0.00%
9,164
45.80%
100.00%
-9,164
2
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8,000
2,399
29.99%
455
1.70%
427.23%
1,944
18,000
2,992
16
62%
5,643
25 70%
46
97%
2 651
f
70,600
35,431
50.19%
20,500
49.40%
72.83%
14,931
0
0
0.00%
0
0.00%
0.00%
0
1,000
233.48
23.35%
0
0.00%
0.00%
233
1,242,963
493,156
39.68%
604,691
47.80%
-18.44%
111,535
Packet Pg. 197
2.D.a
Personal Services
170,600
69,901
40.97%
137,099
27.30%
-49.01%
-67,199
Personal Benefits
55,013
11,513
20 93%
37,540
23 50%
69 33%
26 027
Operating Expenses
839,388
279,747
33 33%
217,360
50 80%
28 70%
62,387
JJJ(
Insurance
8,360
4,977
59.53%
12,765
50.30%
-61.01%
-7,788
Commodities
65,000
12,096
18 61%
18,431
11 50%
34 37%
6 335
Maintenance & Repair
200,025
99,101
49 54%
0
0 00%
°
00% 0
99,101
Facilities
Maintenance & Repair
ai
Othr
0
0
0 00%
0
0 00%
°
0 00%
0
Maintenance &Repair.
o
o
Vehicle
0
0
0 00%
0
0 00%
°
0 00%
0
Capital Project Facilities
20,000
0
0 00%
2,442
718 50%
100 00%
2 442
J
Capital Equipment
55,500
27,700
49.91%
41,703
81.60%
-33.58%
-14,003
Operating Transfer
0
0
0 00%
0 00%
0 00%
0
All Other Expenses
1,000
533.48
53 35%
516
103 20%
3 39%
17
Total
1,414,886
505,568
35.73%
709,692
52.10%
41.80%
204,124
The significant variances at both courses are due to the outsourcing of course maintenance. Capital
Projects -Facilities account for the contractual expenses for the course maintenance.
All Other Village Fund E'xp err ditureslEypensels
• Almost 75 percent of expenses in the Parking Lot Fund are for the ComEd right of way land
lease. That payment is made in the second half of the year
• The timing of construction in the MFT Fund and both Capital Project Funds result in most of the
expense being posted in late summer/early fall.
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2.D.a
The following charts provide the snapshot of budget performance to date for all Village Funds.
General
22, 326, 774
20, 432, 287
1,894,487
Water & Sewer
4,526,531
7,072,921
2 546 390 1
„BGGC
448,628
493,156
44 528
AGC
558,230
505,568
52,662
Parking Lot
83,090
15,142
67,948 ,
J
Motor Fuel Tax
541,904
693,638
151,734
Capital Projects
304,242
304,242
0 ,
1
Capital Projects Streets
426,031
402,697
23,334
Debt Service
408,655
141,831
266,824 ,
J
Police Pension
2,200,565
1,798,555
402,010
Fire Pension
1,875,454
1,022,356
853,098 ,
1
Refuse
608,925
420,449
188,476 J
Tota I
34 309 029
33 302 842
1 006 187
Department Directors will continue to monitor spending on a monthly basis. Staff will present a series of
budget amendments in tandem with the development of the FY 2017 budget. One known amendment
will be to Capital Projects -Street to adjust for the issuance of $6 million in debt for the street
maintenance program.
Packet Pg. 199
2.E
Information Item : Service Level Expectation Update
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
Staff will present on update on the service level expectations process.
ATTACHMENTS:
• Service Level Expectations Update (DOC)
Trustee Liaison
Sussman
Monday, August 1, 2016
Staff Contact
Jenny Maltas, Office of the Village Manager
Updated: 7/28/2016 2:31 PM
Page 1
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2.E.a
13 U FFA L0 1 I .R0 VE
MEMORANDUM
TO: Village President & Board of Trustees
FROM: Jennifer Maltas, Deputy Village Manager
DATE: August 1, 2018
RE: Service Level Expectations Update
Introduction
One of the goals listed in the Village Board approved strategic plan is to analyze all of the
Village's services to determine the current service level and the resources necessary to continue
the service at the current level. The goal is to create a "catalog" of services that will highlight
the costs associated with the services that the Village provides which will also be key indicators
to evaluate as the Village transitions to a program based budget.
Process
Staff reviewed the services that the Village provides as a part of the core services exercise in
2013. It was determined that rather than trying to put together the entire catalog at one time, it
would be best to start with some key indicators from each department and build on the catalog
moving forward. With this approach, both Staff and the Village Board can become comfortable
with the process and give feedback prior to a full buildout of the catalog. The first set of
indicators for each department were chosen by identifying what information the Village currently
tracks as well as information that is important to the publicNiillage Board. It will take some time
to build out the full catalog because in some cases the Village has not historically tracked some
of the data needed to complete the full service catalog.
Examples
Below is a table that shows five services in the Public Works Department and their current
service levels and costs.
The chart shows that in order for the Village to sweep every street on a monthly basis it costs
$96,270 annually to maintain that service level. For snow removal, in order to make 1 pass on
each street every 8 hours through a snow event the Village spends $385,500 annually. Having
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Packet Pg. 201
2.E.a
this information, the Village Board can make policy decisions on whether the service levels are
acceptable and whether to spend more or less money to improve or reduce any service level.
To further illustrate the process, below are examples of services throughout the Village with
demonstrations on different ways to view and use the data.
The services listed above also include revenue. For the newsletter, the Park District provides the
Village payment for their portion of the newsletter (2) pages. Revenues were not included for
water billing because if the Village Board were to choose to bill customers on a monthly basis,
the revenue profile would not change as the bi-monthly bills include consumption from two
months. On the other hand, revenues were included on the business licensing side because if
additional license categories were added that would change both the expense and the revenue
profile for the program. A negative number in the cost column indicates that the service is a
revenue generating program for the Village.
On the Community Development side, most of the programs do have a revenue source. Code
Enforcement activities typically do not as the Village's policy is compliance versus revenue
generation. However, on the permitting side, the attempt is to recuperate costs while also
keeping in mind the cost of permits that the Village's comparables charge. The chart above not
only provides the service level but also indicates that the current cost structure for over-the-
counter permits and the new business application/inspection fees are not fully covering the
Village's costs.
Of note in the Fire Department is that the commercial life safety inspections are currently
running on an 18 months cycle instead of the desired 12 month cycle. Understanding this data is
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2.E.a
important to identifying issues such as this and making changes. Due to the 1S month cycle, the
Fire Department is working with the Firefighter/Paramedics and Lieutenants to complete these
inspections while they are not on a call for service. This will allow for some additional staffing
in this area without impacting the cost profile of the Department. In Fire and EMS response,
only the time that the Department commits to these activities are listed in the expense column
(including equipment expenses). Therefore, time that the Department spends doing other
activities such as training or landscape work at the stations are not included. As you can see
above, even when the actual time spent on response is included in the total cost, the Village does
not generate enough revenue through EMS billing to cover costs.
The Police Department did not submit data for this round and will be included in future
discussions.
Next Steps
Based on feedback from the Village Board on the examples provided in this memorandum, Staff
will continue to work with Departments to develop a full catalog of services that the Village
provides to assist with decision making at both the Staff and Village Board level.
-3-
Packet Pg. 203
2.F
Information Item : 2017 Pay Plan and Pay Ranges Discussion
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
The Village of Buffalo Grove has adopted a formal classification and compensation strategy, which is
closely aligned with the Village's strategic initiatives, as well as the external and internal labor market.
Using these methods, staff has developed the attached 2017 pay ranges for non -represented employees.
The establishment of this market driven compensation plan is a key component of our continuing pay for
performance program and overall compensation strategy.
ATTACHMENTS:
• 2017 Pay Ranges Cover Memo 07 28 2016 (DOCX)
• 2017 Draft Pay Ranges (PDF)
Trustee Liaison
Berman
Monday, August 1, 2016
Staff Contact
Arthur a Malinowski, Human Resources
Updated: 7/28/2016 8:26 AM
Page 1
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2.F.a
III) VILLAGI�� u� h,
WR$ak& d xp-c;o'v'e, H ¢.00811) 1,r°MP,!„r
� ax 8,�4 459 1,,l06
MEMORANDUM
TO: Dane C. Bragg, Village Manager
FROM: Arthur A. Malinowski, Jr., Director of Human Resources
Peter M. Cahill, Human Resources Management Analyst
DATE: August 1, 2016
RE: Proposed 2017 Pay Ranges For Non -Represented Employees.
11
The Village of Buffalo Grove has adopted a formal classification and compensation strategy,
which is closely aligned with the Village's strategic initiatives, as well as the external and
internal labor market. Using these methods, staff has developed the attached 2017 pay ranges for
non -represented employees. The establishment of this market driven compensation plan is a key
component of our continuing pay for performance program and overall compensation strategy.
In order to maintain external equity, the proposed 2017 pay ranges incorporate the Village's
strategy to establish the pay ranges at the third position for compensation paid for like positions
among the Village's fourteen comparable communities. This practice is currently utilized via the
collective bargaining process with both the Buffalo Grove Professional Firefighter/Paramedic
Association and the Metropolitan Alliance of Police. Additionally, the Village Manager's Office
analyzed the data to ensure the internal equity of the compensation plan. Together, these two
methods led to the development of the attached pay plan.
Based on a survey of our comparable communities, staff is preliminarily proposing a 2.5%
general wage increase, contingent on the ongoing budget process. The attached ranges include
the preliminary proposed 2.5% general wage increase for 2017. With this said, the Village Board
will determine the actual 2017 general wage increase for non -represented staff at a later date.
Additionally, as a result of the internal and external analysis completed, staff is recommending
that three job titles be reclassified from the prior classification plan. The titles are: (1) Deputy
Director of Public Works - from Pay Grade 58 to Pay Grade 62; (2) Public Works
Superintendent — from Pay Grade 54 to Pay Grade 58; and (3) Civil Engineer I - from Pay Grade
34 to Pay Grade 42.
It is important to note that although the pay ranges may be amended, the actual salaries of
individual employees will not be changed unless their current salaries fall under the new
minimum salary for their range.
If adopted, the compensation plan recommended herein will be reflected in the 2017 budget.
Packet Pg. 205
2.F.b
2017 Pay Ranges with Proposed General Wage Increase
Position
New Min
Step
New Max
Step
Pay Grade 70
Director of Finance
$117,361.92
386
$174,907.20
466
Police Chief
Fire Chief
Director of Public Works
Deputy Village Manager
Director of Community Development
Pay Grade 66
Deputy Fire Chief
$99,550.88
353
$148,364.32
433
Director of Human Resources
Deputy Police Chief
Village Engineer
Pay Grade 62
Police Commander
$102,063.62
341
$139,744.80
421
Battalion Chief
Deputy Director of Public Works
Pay Grade 58
Police Lieutenant
$84,023.68
319
$125,222.24
399
Deputy Finance Director
Building Commissioner
Head Golf Professional BG & Arbo
Public Works Superintendent
Pay Grade 54
Civil Engineer II
$77,192.96
302
$115,042.72
382
Village Planner
Police Sergeant
Pay Grade 50
Fire Lieutenant/ Paramedic
$103,602.72
361
$113,900a80
380
(May 1 2016-April 20, 2017)
Pay Grade 46
Fire Lieutenant/ Non -Paramedic
$101,556.00
357
$111,65232
376
(May 1 2016-April 30, 2017)
Pay Grade 42
Public Works Manager
$71,273.28
286
1 $106,219.36
366
Purchasing Manager
Packet Pg. 206
2.F.b
Civil Engineer I
Pay Grade 34
Plan Reviewer
$66,466.40
272
$99,055.84
352
Mechanic III
Building Maintenance Crew Leader
Pay Grade 2
Firefighter/Paramedic
$60,457.28
253
$98,562.88
351
(May 1 2016-April 30, 2017)
Pay Grade 2
Patrol Officer
$65,478.40
269
$96,616.00
347
(January 12016-December 312016)
Pay Grade 21
Building Inspector
$60,155.68
252
$89,650.08
332
Health Inspector
Electrical & Mechanical Inspector
Fire Inspector
Plumbing Inspector
Records Supervisor
Property Maintenance Inspector
Mechanic II
Building Maintenance Worker
Accountant
Associate Planner
Admin. Assistant/Deputy Village Clerk
Engineering Technician
Technical Services Manager
Management Analyst
Maintenance Worker III
Crew Leader
Golf Course Supervisor
Head Golf Professional
Pay Grade 17
Maintenance Worker II
$52,838.24
226
$78,748.80
306
Pay Grade 13
Permit Coordinator
$46,182.24
199
$68,827.20
279
Administrative Assistant
Utility Billing Coordinator
Accounts Payable Coordinator
Payroll Coordinator
Packet Pg. 207
2.F.b
Maintenance Worker I
Golf Horticulturalist
Assistant Golf Professional
Pay Grade 9
Community Service Officer
$42,427.84
182
$63,232.00
262
Desk Officer
Social Worker
Evidence Custodian
Clerk
Pay Grade 5
Fleet Maintenance Shop Assistant
$24,390.08
71
$36,348.00
151
Engineering Aide
Pay Grade 1
School Crossing Guard
$18,536.96
16
$27,491.36
95
Laborer
Golf Course Attendant
Packet Pg. 208
4.A
Information Item : Executive Session- Section 2(C)(1) of the Illinois
Open Meetings Act: the Appointment, Employment, Compensation,
Discipline, Performance, or Dismissal of Specific Employees of the
Public Body or Legal Counsel for the Public Body, Including
Hearing Testimony on a Complaint Lodged Against an Employee of
the Public Body or Against Legal Counsel for the Public Body to
Determine Its Validity.
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Recommendation of Action
Staff recommends approval.
Executive Session- Section 2(C)(1) of the Illinois Open Meetings Act: the Appointment, Employment,
Compensation, Discipline, Performance, or Dismissal of Specific Employees of the Public Body or Legal
Counsel for the Public Body, Including Hearing Testimony on a Complaint Lodged Against an Employee
of the Public Body or Against Legal Counsel for the Public Body to Determine Its Validity.
Trustee Liaison
Sussman
Monday, August 1, 2016
Staff Contact
Dane Bragg, Office of the Village Manager
Updated: 7/27/2016 4:48 PM
Page 1
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