2020-08-03 - Village Board Committee of the Whole - Agenda Packet2
3.
Fifty Raupp Blvd
Buffalo Grove, IL 60089-2100
Phone: 847-459-2500
A. Open Meetings Act Compliance
Pursuant to Public Act 101-0640 as well as the Disaster Proclamation and Executive
Orders issued by Governor Pritzker, this meeting will be held in person with capacity -
limited physical attendance. Those not willing or able to physically attend can still fully
participate electronically by utilizing the Zoom link below.
Zoom Link: www.vbg.org/august3meeting
Phone Number: 312-626-6799
Meeting ID: 858 3325 1884
Instructions for how the public can see, listen and/or participate in meetings are listed
immediately below this statement.
In accordance with the Open Meetings Act, any person shall be permitted an opportunity
to address public officials under the rules established and recorded in the Buffalo Grove
Municipal Code. The Village President reserves the right to alter the order of the
appearance of speakers to maintain decorum during the meeting.
Due to the COVID-19 pandemic and CDC guidelines for social distancing, physical
attendance is limited to 20 persons in addition to Elected Officials and Staff. All seats are
on a first come, first served basis. All persons physically attending the meeting will be
required to don an appropriate face covering during the duration of the meeting and shall
be required to undergo a body temperature scan before entering the Jeffrey S. Braiman
Council Chambers. The Village of Buffalo Grove reserves the right to deny entry to any
person displaying COVID-19 symptoms or a body temperature exceeding 100.4 degrees
Fahrenheit. All meeting participants shall observe CDC -published guidelines for social
distancing while attending the meeting.
B. Pledge of Allegiance
Special Business
A. Fees & Fines Update (Trustee Weidenfeld) (Staff Contact: Julie Kamka)
B. Sunset Home Rule and Utility Taxes (Trustee Weidenfeld) (Staff Contact: Chris Black)
C. Twenty -Year Water Rate Proforma (Trustee Pike) (Staff Contact: Chris Stilling)
D. FY 2020 Six Month Budget Performance Report (Trustee Weidenfeld) (Staff Contact:
Chris Black)
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. 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 : Fees & Fines Update
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
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Staff recommends discussion.
As part of the annual budget development process, department directors submit recommendations to
update current fees and/or fines that will impact the budget (FY 2021). The recommendations are
consolidated and proposed at the same time to provide efficiency and continuity in the process.
There are several reasons why fees and/or fines are changed including; existing rate does not adequately
cover the cost of service, no fee/fine existed previously, the fine is no longer a deterrent to non-
compliance, the fee is lower than other municipal comparables for similar services.
ATTACHMENTS:
Memo 7-30-2020 (DOCX)
• 2021 Ambulance Fee Revision(PDF)
Administrative Fee and Fine Recommendations PD -July 2020 (DOCX)
Trustee Liaison
W eidenfeld
Monday, August 3, 2020
Staff Contact
Julie Kamka, Office of the Village Manager
Updated: 7/29/2020 3:43 PM
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2.A.a
VILLAC'E OF
BUFFALO CROVE'
MEMORANDUM
DATE: July 30, 2020
TO: Dane Bragg, Village Manager
FROM: Julie Kamka, Deputy Village Clerk
SUBJECT: Fees & Fines
Overview
As part of the annual budget development process, department directors submit recommendations to
update current fees and/or fines that will impact the budget (FY 2021). The recommendations are
consolidated and proposed at the same time to provide efficiency and continuity in the process.
There are several reasons why fees and/or fines are changed including; existing rate does not adequately
cover the cost of service, no fee/fine existed previously, the fine is no longer a deterrent to non-compliance,
the fee is lower than other municipal comparables for similar services.
The Community Development Department will be reviewing the current Residential Rental Inspection
Program and will be providing any recommended changes as a separate action item at a later date.
Recommended changes to Chapter 1.16 — Fee Schedule are listed in the Table below:
Code Section
Fee or Fine
Current
Recommended
Amount
Amount
3.36.030
Resident who utilizes the emergency medical $850
$975
service: BLS
3.36.030
Resident who utilizes the emergency medical
$1,100
$1,275
service: ALS Level 1
3.36.030
Resident who utilizes the emergency medical
$1,300
$1,500
service: ALS Level 2
3.36.030
Nonresident who utilizes the emergency medical
$1,100
$1,300
service: BLS
3.36.030
Nonresident who utilizes the emergency medical
$1,200
$1,475
service: ALS Level 1
3.36.030
Nonresident who utilizes the emergency medical
$1,400
$1,675
service: ASL Level 2
6.08.030.C.
Animal impound fee per day
$15
$25
Chapter 3.36.030 — Fee Established
The Fire Department has based the recommended amounts based on ambulance fee surveys conducted
by the Naperville Fire Department between 2010 and 2019 to estimate the 2021 rate structure. Detailed
information is contained in Chief Baker's memo to the Village Board.
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Chapter 6.08.030.0 — Redemption (animal impound
Currently, the animal shelter receives the entire $15.00 for animals being impounded. Village staff
transports the animals to the shelter. The proposed increase is to recoup staff time and wear and tear on
Village vehicles.
Under the same Section 6.08.030.0 it is recommended to eliminate the fee for animals not wearing a current
license tag since the Village no longer issues animal tags and to eliminate the fees for dogs running at large
since those fines are contained in Table 2.62.015-1, Tables of Offenses and Fines.
Recommended changes to Chapter 2.62.015 — Village Code Hearing Jurisdiction are listed in the Table
below:
Code Section
9.16.020
9.48.020
9.48.030.A
9.48.040
9.52.020
9.68.010
*Must Appear Violation
Fee or Fine
Cannabis Offenses (All 9.16
sections)
Trespass
Damage to Village Property
Graffiti
Curfew
Chapter 9.16.020 - Cannabis
Current Recommended
Amount Amount
$100
$100*
$100*
$75*
$150
$150*
$150*
$150*
100*
It is recommended to separate each offense by creating sub -sections in order to assist officers when writing
tickets and for tracking purposes. It is also recommended to add an additional offense "Possession of
Cannabis of persons under 21" which would be a separate sub -section under 9.16.020. A text amendment
would be required.
Chapter 9.52.020 — Theft
Currently this section has only one offense for Theft with a minimum fine of $200*. It is recommended to
add Retail Theft with a minimum fine of $250*. This would require a text amendment.
The Police Department has also recommended doubling the fine amount, subject to Section 1.08.010, for
those who default on a notice of violation. A person who fails to appear at a hearing or fails to contest a
notice of violation is determined in default. Currently the Village imposes a $25 fee in addition to the original
fine amount. There were a total of 1,153 default orders in 2019 and 310 default orders through July, 2020.
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2.A.b
L I E F'
BUFFALO GI�
DATE:
TO:
FROM:
SUBJECT
August 13, 2020
President Beverly Sussman and Trustees
Mike Baker, Fire Chief
Proposed Ordinance Revision — Chapter 3.36 Emergency Medical Service and
Transportation Fee
BACKGROUND
The Buffalo Grove Village Board last updated the fees associated with Emergency Medical Services in
July of 2019 to reflect the growing cost of service delivery and to bring Buffalo Grove into alignment
with the fees charged by other fire and EMS agencies. As committed to in 2017, staff has continued to
monitor the region's ambulance fees and the appropriateness of the Village's current fee structure.
In order to analyze rates in conjunction with the budget cycle and because the results of the 2020 survey
will not be released until the first quarter of 2021, staff utilized the ambulance fee surveys conducted by
the Naperville Fire Department between 2010 and 2019 to estimate the 2021 rate structure. On average,
each billing category experienced 5-8% increase on an annual basis over the last decade. In accordance
with the Village Board's 2019 approval of the ambulance user fees, staff has proposed an increase to the
level of the estimated 2021 661h percentile.
BLS-R
ALS 1-R
ALS 2-R
BLS-NR
ALS 1-
ALS 2-
Mileage-
Mileage-
NR
NR
R
NR
Current Fees
$850
$1,100
$1,300
$1,100
$1,200
$1,400
$15.00
$15.00
2019 Median
$825
$1000
$1200
$1071
$1200
$1404
$15.00
$15.00
2019 66"h Percentile
$900
$1182
$1395
$1200
$1391
$1582
$15.00
$16.00
.2020
t
$964
$1,273
$1,485
$1285
$1473
$1667
$15.69
$16.83
66 Percentile
66
Proposed
$975
$1,275
$1,500
$1,300
$1,475
$1,675
$15.00
$15.00
RECOMMENDATION
After consultation with the Village's billing company and feedback from Village Board members, Staff
recommends that rates be increased to better reflect the maximum insurance reimbursement schedules.
While there is no definitive way to determine what any one insurance company's maximum
reimbursement rate may be due to their proprietary nature, an increase in the Village's BLS, ALS, and
ALS 2 fees to reflect the upper third of responding agencies within the Village's comparable population
group will help to ensure that the Village is maximizing fee revenue. It is important to note that all
current policies regarding collection procedures would remain in place. Residents will not be required to
pay any remaining balance after insurance reimbursements, other than any policy specific deductible
that may apply. As in the past, only nonresidents will be billed for remaining balances.
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BUFFALO GROVE POLICE DEPARTMENT
INTERNAL MEMORANDUM
TO: Steven R. Casstevens, Chief of Police
Michael Szos, Deputy Chief
FROM: Tara Anderson, Lieutenant
DATE: July 24, 2020 CL
SUBJECT: Administrative Fee and Fine Recommendations
U.
06
After a review of current administrative offenses and fines, the following are recommended
adjustments.
Our Municipal Code currently has one offense for Theft (Ordinance 9.52.020 / fine $200*).
Consider creating a specific ordinance for "Retail Theft" with a recommended minimum fine
$250*. Possession of cannabis offenses are listed under 9.16.020. Each violation should
be delineated with its own subsection (9.16.020A, 9.16.020B, etc.). Consider adding a
specific ordinance for "Possession of Cannabis — Minor Under Age 21 ".
For those who default on a notice of violation, the Village imposes a $25 fee in addition to
the original fine amount; consider doubling the original fine amount (subject to Section
1.08.010 of the Buffalo Grove Municipal Code). There were 1,153 default orders in 2019
and 310 default orders through July 2020; this disparity is likely due to the COVID-19
pandemic. For reference, a person who fails to appear at a hearing or fails to contest a
notice of violation is determined to be in default. The individual may file a motion to set
aside a default judgment within twenty-one days of the issuance of a default order.
The following chart provides a list of recommended fine adjustments; refer to attached
"Administrative Fines and Fees Comparisons" for local comparables.
Chapter/Section
9.28.010
9.48.020
9.48.030A
9.48.040
9.68.010
9.16.020
Recommended Fine Adjustments
Title/Section
Disorderly Conduct
Trespass
Damage to Village Property
Graffiti
Curfew
Current Fine Recommended Fine
Cannabis Offenses (All 9.16 ordinances)
$100*
$150*
$100*
$150*
$100*
$150*
$75*
$150*
$75*
$100*
$100
$150
(* Must
Appear Violations)
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2.A.c
Below are the total number of violations for 2019 and 2020 to date for each of the proposed fine
increases:
9.16.020 ** ALL CANNABIS ORDINANCES
82
18
100
9.28.010 - Disorderly Conduct
13
2
15
9.48.020 - Trespass
3
2
5
9.48.030A - Damage to Village property
16
10
26
9.48.040 — Graffiti
0
0
0
9.68.010 - Curfew
0
0
0
Grand Total
114
32
146
Respectfully,
Tara Anderson
Staff Services Lieutenant
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2.B
Information Item : Sunset Home Rule and Utility Taxes
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
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Staff recommends discussion.
Staff recommends the continuation of the additional 0.5 percent Home Rule Sales Tax, Municipal Natural
Gas Use Tax, and Municipal Electricity Use Tax in fiscal year 2021. The total $4.81 million or 10.6
percent of the General Fund revenue budget is subject to sunset provisions. Based on the current service
levels, lack of surpluses in other revenue streams, and no new sources of revenue, staff recommends no
changes to Home Rule, Electricity or Natural Gas Use Taxes.
ATTACHMENTS:
• BOT Memo (DOCX)
Trustee Liaison
W eidenfeld
Monday, August 3, 2020
Staff Contact
Chris Black, Finance
Updated: 7/29/2020 11:26 AM
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2.B.a
FROM: Chris Black, Director of Finance
DATE: July 27, 2020
RE: Home Rule Sales and Utility Taxes — Sunset Provisions
In 2004, the Village Board adopted Ordinance No. 2004-16 amending Chapter 3.40 of the
Municipal Code to increase the Hoene Rule Sales Tax by 0.5 percent to 1.0 percent effective July
1, 2004. Within the recitals of the ordinance was a requirement that by January 2006 and each
January thereafter, a review is to be undertaken to determine if the rate should remain at the current
level. The 0.5 percent increase in Home Rule Sales Tax is budgeted at $2.1 million in the 2020
budget.
In 2010 (effective 2011), the Village Board adopted ordinances for the collection of Utility Use
Taxes on electricity and natural gas. Within the recitals of the ordinances were requirements that
a review is to be undertaken to determine if the rate should remain at the current level. The 2020
budgeted revenue for utility taxes totals $2.71 million.
Staff recommends the continuation of the additional 0.5 percent Home Rule Sales Tax, Municipal
Natural Gas Use Tax, and Municipal Electricity Use Tax in fiscal year 2021. The total $4.81
million or 10.6 percent of the General Fund revenue budget is subject to sunset provisions. Based
on the current service levels, lack of surpluses in other revenue streams, and no new sources of
revenue, staff recommends no changes to Home Rule, Electricity or Natural Gas Use Taxes.
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2.0
Information Item : Twenty -Year Water Rate Proforma
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
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Staff recommends discussion.
Attached for the Board's discussion is the Twenty -Year Water Rate Proforma which reflect the latest rates
and capital expenditures.
ATTACHMENTS:
BOT Memo 7.30.20 (DOCX)
• 20 year Water Proforma Update 7.30.20 (PDF)
Trustee Liaison Staff Contact
Pike Chris Stilling, Community Development
Monday, August 3, 2020
Updated: 7/30/2020 4:00 PM Page 1
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2.C.a
TO: Dane C. Bragg, Village Manager
FROM: Chris Stilling, Deputy Village Manager
DATE: July 29, 2020
RE: FY 2021 20-year Water Pro -Forma
Background
In 2012, the Village developed a 20-year Water and Sewer Fund pro -forma to evaluate the water and
sewer system's infrastructure needs. As identified in previous pro-formas, the Village's historical rates
were not sufficient to fund water and sewer operations and capital needs. As a result, in 2019, the
Village Board directed staff to develop a formal funding strategy for the Water and Sewer Fund that
will allow needed capital improvement to occur over the next 20 years. The goal was to develop a
funding strategy to cover $150 million of sewer/water infrastructure with no impact to the tax levy and
maintain a competitive rate amongst other providers within the region. As a result, the Village Board
adopted a new rate structure and fixed facility fee, effective January 2020. Furthermore, the Village
implemented a new local motor fuel tax in effort to align roadwork with water/sewer improvements.
For the Board's review is an updated 20-year water pro -forma reflecting the new rate structure as well
as the recent issuance of debt. The pro -forma shows that Public Works is able to complete over $150
million in water and sewer capital infrastructure through 2039.
The Village maintained a water and sewer rate of $1.80/1,000 gallons for a period of twenty three
years (1983-2005). One significant reason leading to this period of rate stability was due to the age of
the water and sewer infrastructure. During the peak growth decades of the 1980's and 1990's,
developers donated approximately 53 percent of the water and sewer system assets. Through a
combination of minimal capital expenses, receipt of building and development fees, coupled with a
period of growing water consumption, the Water Fund was able to generate strong cash reserves to
allow for a strategy of pay-as-you-go financing for future infrastructure repair. Funding for future
infrastructure replacement (funding depreciation) was never a component of the rate structure.
Beginning in 2003, a pattern of declining water usage started. In 2002, 1.63 billion gallons of water
were billed. In 2019, 1.15 billion gallons were billed, a decrease of nearly 30%. There is no expectation
that the amount of water billed will reach those levels again absent a significant drought orthe addition
of heavy industrial uses. The following chart shows the annual gallons billed since 2010.
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The latest pro -forma uses an estimate of 1.15 billion gallons and will carry forward through the next
20 years. Although there will be an increase in total consumers over the next two decades with Link
Crossing and the Lake Cook Corridor Developments, continued conservation efforts, weather patterns,
and other impacts on water usage could partially counterbalance that growth.
Water and Sewer System Assets
The utility system consists of 186 linear miles of water and sewer main. Based on actual experience in
the field, the service life of the water main infrastructure is 65 years. Over the next 20 years, it is
estimated that 24 percent of the water mains will reach their useful life. As the first iterations of
infrastructure replacement have come due, the Village has engaged in extensive study of the system and
developed a replacement program, culminating in 2020's Infrastructure Modernization Program. The
following chart shows the pattern of construction of water main since 1929.
EM
Water Main Construction En Uineair Fee'
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M M M M M
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Sewer assets have a longer life span as the structures are not pressurized. The Village's preferred
approach is to line existing sanitary sewer mains, thereby extending the life considerably while reducing
the life cycle cost of the asset. As a general rule, sanitary sewer lining can extend the life of a gravity -
fed main by 50 years.
Recent ate Changes
Fixed Facility Fee
As recommended in the water and sewer rate analysis prepared by Strand and Associates, the Village
Board implemented a new fixed facility fee per metered utility account, starting in 2020. The fixed
facility fee is a flat rate assessed to each metered account for access to the water and sewer system.
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The fixed fees collected are used for them a intenance and replacement of the capital infrastructure for
the delivery of clean water and the removal of the wastewater. The current fee schedule is as follows:
All Single -Family Detached, Single -Family Attached
$17.39
Residential/Governmental/Institutional
Multi -Family, Commercial/Industrial Based on Meter
Size
1" meters or less
$17.39
1.5" meters _
$22.02
2" meters
$45.17
3" meters
$115.68
4" meters
$180.68
6" meters
$199.20
The fixed feewill beevaluated everyfiveyears by utilizingthe aggregate Consumer Price Index(CPI-U) over
the preceding five-year period to determine if the rate must be increased. The 20-Year Water/Sewer
Pro -Forma assumes a 10 percent increase to the facility fee to occur in 2025.
Water/Sewer Rate
The Village's consumption model is driven by water rate and consumer use. The fees collected from
system users should cover operating expenses such as the cost of the water sourced from the
Northwest Water Commission as well as the cost for pumping, storage and distribution. In 2020, the
Village Board approved a one-time 11 percent increase to meet and sustain growth in operating
expenditures. The combined sewer and water rate per 1000 gallons is $7.07. This rate will increase
each year by 4 percent, as adopted by ordinance by the Village Board.
Historically, the Water and Sewer Fund addressed infrastructure maintenance and improvement on a
pay as you go basis. Due to the relative age of the system, many system repairs and replacements are
coming due over the next 20 years based on the growth periods for the Village. Since 2012, $18.7
million in infrastructure repairs and improvements has been spent, including $6 million in water meter
replacement costs. The meter replacement costs were funded through an installment note scheduled
to be retired in 2033.
As noted, the Village Board approved two revenue streams, a fixed facility fee combined with a
water/sewer rate increase and a local motor fuel tax to fund capital improvements. These actions
allow the Village to address the first generation of major water and sewer infrastructure replacement
as well as street repair and replacement. By combining utility and street improvements, the Village is
able to comprehensively address repairs and improvements in neighborhoods and limit disruption to
residents.
In May 2020, the Board also approved the issuance of a bond totaling $26 million - $13 million for
water/sewer and $13 million for streets, to begin the Infrastructure Modernization Program. Over the
next five years, the Village will invest approximately $50 million into water, sanitary sewer and streets.
The long-term goal is to transition from a debt/cash strategy to a cash -only strategy (pay-as-you-go) to
fund all system replacements.
From 2020 through 2024, the Village has programmed $30 million in water and sewer capital projects.
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Many of these projects are identified on the ii.11.11age' iACebsite as part of the Infrastructure
Modernization Program. From 2025 through 2029, the Water and Sewer fund will be self -funded for
necessary capital improvements. In 2030 and again in 2033, the Village will need to issue additional
debt to keep pace with the water and sewer improvements. As shown, that debt could be fully
supported by revenues generated in the Water and Sewer Fund. All debt is scheduled to be retired by
2048.
After completing the largest surge of infrastructure replacement through 2034, the Water and Sewer
fund begins to rebuild cash balances exceeding $9.2 million from 2035-2039, while also supporting
over $27 million in capital improvements during the same period. As a result of the Village's careful
infrastructure planning, Public Works is able to complete over $150 million in water and sewer capital
infrastructure through 2039, consistent with the recommendations of the Strand & Associates
water/sewer system study.
Page 4
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Information Item : FY 2020 Six Month Budget Performance Report
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Discussion of mid -year budget performance.
June 30, 2020 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.
ATTACHMENTS:
• Six Month Report FY 2020_final (DOCX)
Trustee Liaison Staff Contact
Weidenfeld Chris Black, Finance
Monday, August 3, 2020
Updated: 7/29/2020 11:27 AM Page 1
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11 I AGE OF
TO: Dane C. Bragg, Village Manager
Jennifer Maltas, Deputy Village Manager
Chris Stilling, Deputy Village Manager
FROM: Chris Black, Director of Finance
DATE: July 27, 2020
RE: FY 2020 BUDGET — SIX MONTH STATUS UPDATE
01
The six month revenue and expenditure report provides an overview of current year performance
measured against the 2020 Budget and the prior year's six month totals. The six month report provides
information to make any necessary adjustments in spending and service delivery to respond to an
unanticipated revenue decline or unforeseen expenditures.
The Village's 2020 budget consists of $85,755,363 in total revenue and $80,837,127 in total expenses. As
a reminder, the approximately $4.9 million dollar surplus is comprised almost entirely of additional
pension revenue used to address actuarially determined future pension liabilities.
The COVID-19 pandemic has significantly affected the Village's revenues and expenses. As a result, our
overall fiscal operations for the first six months will differ from our 2020 budget assumptions. Several
major revenue sources have declined and will continue to do so for the remainder of the year. Expense
reductions have been made to mitigate revenue losses. Several measures such as not filling vacant
positions, deferring capital equipment purchases, and other operating reductions are reflected in the
report.
In a typical year, revenues and expenses would be approximately 50 percent of the annual budget. Some
major revenue sources have season variation that could lead to a variance from the expected amount.
Expenses traditionally will be less than 50 percent due to the timing of payroll, debt service payments,
and construction and equipment purchases.
General Fund Revenue Highlights
Nearly 81 percent of the General Fund's revenue are comprised of five sources of revenue including
property tax, sales tax, use tax, income tax and excise taxes. Provided below is a chart of total General
Fund Revenue collected to date and a description of the major revenues.
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General Fund revenues are trending at 45.8 percent of the 2020 budget. Collections have decreased 13.2
percent, or $3,172,789, from the first six months of 2019. The following is a review of all major sources of
revenue.
Property Taxes - 44.0%
Revenue to date represents the first installments of the 2019 levy extensions for both Lake and
Cook Counties. Receipts are less than last year because Lake County has allowed taxpayers to
defer 50 percent of their first installment payment 60 days. Historically, 99.8 percent of taxes
levied are collected so budget estimates will likely be realized by year-end.
Combined Sales Taxes (Base/Home Rule) — 46.4%
Base Sales Tax and Home Rule net receipts will likely be under budget for the year due to the
effects of the stay-at-home order and business restrictions that occurred earlier in the year and a
decline in sales activity. Receipts are approximately 5 percent less than the prior year. The largest
generators of sales tax are grocery stores and building and electrical supplies.
Income Tax - 52.0%
Income tax revenues are performing below budgeted expectations and approximately 13.4
percent less than the prior year. The state postponement of the tax filing deadline from April 15th
to July 15th resulted in April 2020 receipts being $415,000 less than April 2019. The revenue
shortfall for April is expected to be offset for the most part by July receipts. The revenue source
is expected to be slightly under budget for the year.
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• Use and Utility Taxes (Local Use/Electricity/Natural Gas) — 61.8%/45.7%/74.9%
Local Use Tax is applicable to purchases made where Illinois sales tax has not been charged and
the purchase will be used or consumed in Illinois. The primary example is non -taxed internet
sales. Due to the pandemic, internet sales have increased and revenue is 13.9 percent higher
than for the same period in 2019. Electricity Use Tax is at the benchmark with higher usage in
summer months in the second half of the year. Typically 75 percent of the annual budget of
Natural Gas Use Tax revenues are received during the first six months of the year because usage
is highest during the winter months. Both revenue sources will likely meet the annual budget
target.
• Real Estate Transfer Tax — 36.2%
Receipts from the Real Estate Transfer Tax has decreased 17.7 percent from the last year. The
pandemic resulted in limited real estate activity in March through May. June revenues met
budget projections. We anticipate the revenue source will end the year below the budget
amount.
• Telecommunications Tax — 31.6%
Telecommunications Excise Tax is levied at a rate of 6 percent collected by the retailer and
submitted to the State of Illinois. The revenue is down $560,000 from the previous year. The
revenue source is expected to perform closer to budget expectations for the last six months of
the year. Revenues are expected to end the year at approximately 35 percent under budget.
• Prepared Food and Beverage Tax — 42.0%
Revenue to date generated from the Village's 1 percent Prepared Food and Beverage Tax is
$315,200 or $55,000 less than the previous year. Tax receipts have decreased due to pandemic
related restrictions on restaurants. Revenues are expected to end the year under budget.
• Development Fees/ Permits — 52.6%
Construction and development related fees and licenses are generated in both the General and
Water Funds. This revenue is a strong indicator of the development occurring in Buffalo Grove.
Revenue is generated from permits, inspections, and associated development and engineering
fees. Total revenue are 31.6 percent less that the first six months of 2019 and 52.6 percent of the
2020 budget amount. Permit activity slowed in March and April but has rebounded the last two
months. Revenues are expected to slightly underperform budget expectations for the year.
• All Other Revenue
This line is comprised of cable franchise, medical marijuana, storm water, sale of assets and other
fees. These are all expected to come in slightly below forecasted amounts for fiscal year 2020.
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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 — 54.8%
Revenue is typically less than 50 percent of the annual budget for the first six months of the year.
Billing of residential users is two months in arrears and for commercial and multi -family customers
the lag is one month. As a result, customers have not been billed for all water consumed in May
and June. Revenue is higher than expected, which is typically approximately 42 percent, because
the budgeted amount is based on a four percent rate increase (rather than the actual 11 percent
increase) and does not include the fixed facility fee.
�1313ollf Enterprise Revenue Highlights
Buffalo Grove Golf Club
Through June 30, 2020, a total of $362,600 or 30.7 percent of the annual budget was generated in
operating and non -operating revenue. Revenues are 19.8 percent less than the same time period the
prior year. The pandemic resulted in the course being closed in April and with limitations on the number
of golfers in May. Receipts rebounded in June and July. Revenue will likely end the year between 10
percent and 20 percent under budget.
Revenues at the golf course tend to be less than the 50 percent benchmark as the highest number of
rounds are played in July and August. Through the midpoint of the year 10,711 rounds have been played
as compared to 11,280 a year ago, a decrease of 5 percent.
Arboretum Golf Club:
Arboretum Golf Club six month operating revenue totaled $392,700 or 30.7 percent of annual budget
compared to the previous year's revenue of $452,000, or 33.5 percent of the budget amount. The
pandemic resulted in the course being closed in April and with limitations on the number of golfers in
May. Receipts rebounded in June and July. Revenue will likely end the year between 10 percent
percent under budget. Packet Pg. 22
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The operating transfer is only made if the Arboretum Club expenses exceed its revenue, after the full year
is accounted for and reviewed. To date, 9,425 rounds have been played. At the same point last year
10,076 rounds were played, a 6.5 percent decrease. It should be noted that the final debt service payment
for the Arboretum Club House improvements will be made in 2020. The debt service is not sourced from
the Golf Fund.
All Othe°r Village Pone Revenues
The remaining funds revenues are listed below:
The largest variances year over year are:
• Police Pension Fund and Fire Pension Fund increases are market -based and investments are not
performing as well as the prior year. Year-end revenue reported for 2020 could be less than the
current position as these amounts fluctuate in the same manner as the market.
Capital Projects are funded through operating transfers and at this point half of those funds have
been allocated to streets even though the projects may not have begun at this point in the year.
The transfer from the General Fund to facilities will likely not be made this year as a cost reduction
measure. The dollar change is based on the amount budgeted to complete capital projects in
each fiscal year.
Certain revenue, such as inter -fund transfers, generally are not posted until the second half of the period
and only based on the need of the receiving fund. All revenue categories will be monitored closely and all
efforts maximized to enhance revenue.
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General Fend Expenditure Review
Expenditures to date total $18,915,575 or 41.7 percent of the approved budget. This compares to
$20,956,658 or 47.1 percent in FY 2019. General Fund expenses will be less than the 2020 budget at year
end. The following chart depicts expenditure performance:
Personal Services / Personal Benefits — 43.6 percent/43.2
Personal Services is the single largest expense account category budgeted by the Village. In terms of total
budget, Personal Services and Benefits account for 75.4 percent of expenditures. Salary typically trends
just below the 50 percent benchmark due to the timing of payroll and the accrual of the first payroll of
the year. Wage and benefit expenditures are approximately 4.9 percent less than the prior year due in
part to several vacant positions being unfilled as an expense reduction effort to mitigate revenue losses
due to COVID-19.
Most spending categories are below or at expected levels through the first six months of the year.
Operating expenses are 5.2 percent above the prior year amount due in part to COVID-19 related
expenses that will likely be reimbursed with CARES Act funds. Operating transfers are $750,100 less than
the prior year. Capital transfers were eliminated as a cost reduction measure. Capital purchases made
through the reserve accounts have been reduced and will be reconciled at year end. Insurance is higher
than expected because the annual general liability and worker compensation insurance premium is paid
each year in January.
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Water& Sewer Fund E,xpense Review
As of June 30, 2020, the Water and Sewer fund has expended 26.4 percent of its budget.
The largest notable variances are in Commodities and Capital Projects -Water. Commodities are less
because a payment has not been made to Lake County this yearfor sanitary sewerfees the Village collects
on behalf of the County. Capital Projects —Water has increased because a higher volume of capital project
work was completed in 2020 as compared to the previous year.
Golf Enterprise Expense Review
The Buffalo Grove Golf Club and Arboretum Club combined have expended 41 percent of the annual
budget in the first six months of fiscal year 2020. Personal expenses are lower for both courses because
of a decrease in part-time labor costs due to the courses being closed or having limited operations March
through May.
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All Other Village Fun ., e i �t°i,,ires E e s'e,��
• The Parking lot fund annual major expense for the land lease payment to Corn Ed is made in the
second half of the year.
• The timing of construction impacts the recognition of the Capital Project Fund's expenditures.
These budgets are planned and spent in full.
• MFT expenditures are charged to Public Works departments throughout the year and a
reconciliation is completed before the end of the fiscal year to account for the qualifying
expenditures which then are reclassed into the MFT Fund.
• The Refuse Fund is billed in arrears by SWANNC and the first quarterly payment is annually
accrued back to the prior fiscal period.
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The following charts provide the snapshot of budget performance to date for all Village Funds.
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Department directors will continue to monitor spending on a monthly basis. Staff will present a series of
budget amendments intandem with the development ofthe FYZ0Z0budget.