2023-08-07 - Village Board Committee of the Whole - Agenda Packet2. Special Business
1. Citizen Life Saving Citation (Trustee Cesario) (Staff Contact: Mike Baker)
2. Promotion of Matthew Mills to Sergeant (Trustee Ottenheimer) (Staff Contact: Brian
Budds)
3. BG Moving Forward Update (Trustee Johnson, Trustee Ottenheimer) (Staff Contact:
Nicole Woods)
4. Market Presentation (Trustee Stein) (Staff Contact: Nicole Woods)
5. Review of 2024 Capital Improvement Program Requests (Trustee Stein) (Staff Contact:
Kyle Johnson)
6. Non -Represented General Wage Increase and Merit Pool Recommendation (Trustee
Ottenheimer) (Staff Contact: Arthur Malinowski)
7. Sunset Home Rule and Utility Taxes (Trustee Pike) (Staff Contact: Chris Black)
8. FY 2023 Budget — Six Month Status Update (Trustee Pike) (Staff Contact: Chris Black)
9. Discussion of Preliminary 2024 Property Tax Levy (Trustee Pike) (Staff Contact: Chris
Black)
3. Public Comment
Public Comment is 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 5 minutes and should be limited to concerns or comments regarding issues that are relevant to
Village Board 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.
2.1
Information Item : Citizen Life Saving Citation
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Recommendation of Action
Staff recommends presentation.
Chief Baker will recognize the life saving actions of Matthew Pangborn and BGFD personnel who
responded to an 9 year old unresponsive in a pool.
Trustee Liaison
Cesario
Monday, August 7, 2023
Staff Contact
Mike Baker, Fire
Updated: 8/3/2023 3:11 PM
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2.2
Information Item : Promotion of Matthew Mills to Sergeant
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Recommendation of Action
Staff recommends presentation.
A Promotional Oath of Office will be delivered by the Buffalo Grove Fire and Police Commissioners' Chair
McKee to the Department's new Sergeant, Matthew Mills.
Trustee Liaison
Ottenheimer
Monday, August 7, 2023
Staff Contact
Brian Budds, Police
Updated: 7/27/2023 11:18 AM
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2.3
Information Item : BG Moving Forward Update
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Recommendation of Action
Staff recommends presentation.
BG Moving Forward, which encompasses the three interrelated strategic growth initiatives: the Strategic
Plan, Comprehensive Plan, and Community Branding, continues to make great strides. Staff will present
an update for each project and will illustrate how the projects are moving forward both collectively and
individually.
ATTACHMENTS:
• Moving BG Forward Update Memo
Trustee Liaison
Johnson, Ottenheimer
Monday, August 7, 2023
(DOCX)
Staff Contact
Nicole Woods, Community Development
Updated: 8/4/2023 12:07 PM
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2.3.a
.:T h
MEMORANDUM
DATE: August 3, 2023
TO: Dane Bragg, Village Manager
FROM: Nicole Woods, Director of Community Development
Molly Gillespie, Director of Communications and Community Engagement
Evan Michel, Assistant to the Village Manager
SUBJECT: Moving BG Forward Update
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Moving BG Forward encompasses three interrelated strategic growth initiatives: the
Strategic Plan, Comprehensive Plan, and Community Branding. The initiatives are making great
strides both collectively and individually, and progress reports and anticipated timelines are
included.
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The key opportunities for synergy among the three projects include shared branding and
marketing, outreach and community engagement activities, and information sharing between
projects. To date, we estimate that we have reached approximately 700 unique individuals
through our collective and traditional outreach efforts to date. Through additional social media
paid advertising, we have reached nearly 14,000 additional users, garnering nearly 1,000
campaign engagements and link clicks. Information and data gathered from these efforts have
been multilaterally shared, ensuring each project's process is strongly informed and that the
three initiatives are aligned. Staff is currently developing an interactive Moving BG Forward
outreach opportunity for Buffalo Grove Days that can share information and capture additional
input from the community on all three projects. The opportunity will create a fun, unique way
for staff to share the exciting work underway at the Village, taking advantage of the large,
captive audience.
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2.3.a
Str"ate„..i''c" Plan
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On May 11, 2023, the Strategic Planning
Citizen Summit was successfully
conducted at the Alcott Center. Thirty-
four committed community members
participated, providing valuable insights
into Buffalo Grove's future. The format
consisted of a structured discussion in
three rounds, each examining a different
aspect of Buffalo Grove's prospective
future. Staff incorporated the insights and
themes from the Citizen Summit into the
Branding Initiative and Comprehensive
Planning process through the Moving BG
Forward initiative.
Subsequently, Lyle Sumek Associates
utilized these insights along with
additional input from the Village Board
and Staff interviews to develop five
overarching goals: Goal One: Enhanced
Beautiful, Safe And Sustainability Of
Neighborhoods; Goal Two: Strengthened
Buffalo Grove Community Identity And
Pride; Goal Three: More Livable Buffalo
Grove Community With Leisure
Experiences For All; Goal Four: Made Buffalo Grove A Vibrant And Innovative Community —
Leading Edge; Goal Five: Maintained Effective Village Government- Fiscally Responsible And
Providing Outstanding Responsive Services.
On July 29, 2023, a focus group session was held to delve deeper into these draft goals and
objectives. This session engaged five individuals who had been invitees to the summit. The
participants generally approved of the vision, mission, and goals that Lyle Sumek Associates
presented as well as provided a great deal of input on their aspirations for the future of Buffalo
Grove.
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2.3.a
Building on this extensive outreach and the additional engagement through Moving BG Forward,
Lyle Sumek Associates prepared an initial draft plan. This plan encapsulates the vision, mission,
goals, and objectives of Buffalo Grove.
On August 7, 2023, Lyle Sumek Associates will facilitate a brief session with the Village Board.
The aim is to gather prioritization and feedback on the initial draft plan from the Board. This
session represents the final formal interaction with the Village Board before moving forward.
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After the approval of the draft plan by the Village Board, staff will utilize the vision, mission,
goals, and objectives for the development of the 2024 Budget Document.
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Lyle Sumek Associates and staff will likewise collaborate to outline key actions, responsibilities, _
and deliverables during August and September. Once these items are finalized, the final draft o
plan will be presented to the board for review. The intent is to formally adopt this final draft
plan at the October or November Village Board meeting. m
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2.3.a
Coil�nprehei, 1,S]''Me Plan
Work for the Comprehensive Plan is underway. Currently, staff is completing the research and
analysis phase and has begun to draft the Existing Conditions Report. At the August 7t" COW,
staff intends to present preliminary Existing Conditions Report findings for discussion.
Outreach Activities and Initiatives
A variety of outreach activities have been conducted, are underway, or are planned in the near
future. Some of these efforts are in conjunction with the Strategic Plan and Branding projects.
Outreach initiatives directly tethered to the Comprehensive Plan include:
• Previous outreach activities (2018-2019)
• Citizen Summit (Joint Outreach with Strategic Plan — May 11th)
• Steering Committee Input (June 1st)
• PZC Workshop (June 19t")
• Board Interviews (Ongoing)
• Youth Focus Group (August 91n)
• Surveys (Running Parallel with Branding — Ongoing)
• BG Days (Joint Outreach with Branding and Strategic Plan - September 1st-4t")
The August 7t" Committee of the Whole meeting will include a presentation of preliminary Existing
Conditions Report findings for discussion, encompassing outreach, land use, housing,
demographics, transportation, natural resources, and economic development.
Outreach Initial Findings
Although outreach is still ongoing, staff feels we have gained the input of approximately 600
individuals, including over 550 people who have taken our survey. The following has been
identified as some preliminary themes:
• BG has great parks, schools, and diversity
• BG has an opportunity to build more housing especially for the aging population
• BG should explore additional retail and entertainment options and destination, focus on
redevelopment of key sites
• Connectivity and accessibility needs to continue to be enhanced especially in terms of
traffic flow
• Walkability is an area of focus
• Milwaukee Corridor has great potential for development and is an underutilized corridor
• Dundee Corridor is prime for redevelopment and further thought should be given to
transitional uses and modern place -making
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Additional Preliminary Findings
2.3.a
Through staffs analysis of data and information related to land use, transportation, economic
development, housing, demographics, and natural resources, staff has identified several key
findings. The results can be classified in the ways that we live, work, and move. Some of the
findings are deeply -rooted, meaning that have become a part of the inherent fabric of the
community. These are commonly acknowledged and have been discussed in plans and studies
before. Other findings are emerging, indicating that they become of significance in the recent
years and should be identified as an important part of the community's existing condition and
future.
Emerging
Live
Population is growing
Environmental sustainability and
climate adaption
Population is becoming more diverse,
aging while maintaining high
Deeply -
education and income levels
Rooted
Single-family homes dominate
Abundant parks and open space
Market Analysis Initial Findings
Work
Automation, technology,
innovation are rising
Hybrid working options
Advanced manufacturing
corridor is strong and
booming
Move
Walkability and trails are
increasingly important
Public transit service
continues to be a
challenge
Strong local network of
roads and connections to
regional interstates
Initial analysis has shown that overall, Buffalo Grove's industrial market is still going strong with
a low (6%) vacancy rate. This is on -track or better with the surrounding areas, and appears to
be consistent over the past five years. The office market continues to be a significant challenge,
which is showing significantly high vacancy rate and has increased over the past five years. Retail
vacancy has risen but overall is showing a large reuse of retail space towards experientable and
non-traditional commercial uses. high vacancy rates as well, particularly in Buffalo Grove. the
same time, residential market is still fairly strong. The luxury rental market is booming and with
a need for senior -targeted housing units.
To supplement the data, staff has invited Christian Beaudoin from Jones Lang Lasalle (JLL) to
present a more regional snapshot of market trends at the August 71" COW. As you may recall, Mr.
Beaudoin was the market analysis expert on the Lake Cook Corridor consultant team. He can
provide an important perspective on the regional market and Buffalo Grove, given his work with
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2.3.a
us in 2017 as well of his ongoing research work today. The presentation will aim to provide a
larger context for some of these trends, so as to provide a fuller understanding of the post-Covid
market.
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Staff will be presenting at the Village Committee off the Whole under the BG Moving Forward
Update as well as introduce Mr. Beaudoin to give a regional market snapshot. Staff hopes to
share the Board with the Existing Conditions Report in Early Fall.
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2.3.a
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-a, n d i n g
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Our community branding initiative is moving along on schedule. We are currently in the insight
gathering and research phase of the process. In June, representatives from North Star came to
Buffalo Grove for their site visit, where they completed a familiarization tour around BG to help
them understand and visualize all our community has to offer. They hosted one-on-one interviews
with the Village board and community leaders and hosted seven different focus groups.
Since their visit, North Star developed a communitywide survey which has been gathering
feedback the past three weeks and closes August 11. In addition, North Star is conducting
qualitative, in-depth phone interviews with professionals outside of Buffalo Grove to uncover
contextual perspectives. This includes representatives from surrounding municipalities, economic
development agencies, developers and business executives.
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As the research wraps up, the North Star team will be putting together our unique DNA and
strategy formation report - an important step in the process that will guide the management and
development of the brand that's ultimately created. A research and strategy presentation and
report will be previewed to Board members in September prior to a larger stakeholder, in -person
presentation.
After that, the real fun happens - the creative! These tangible products that embody Buffalo Grove
will include straplines, logos, colors, looks and messaging with brand standards. Other custom
deliverables will be identified and created as well. Following, North Star will put together an action
and implementation plan to ensure the brand gains traction and maintains momentum after
adoption. A final report and presentation will come in December, and the new year will kick off
with a new brand that truly represents Buffalo Grove's authentic identity.
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2.4
Information Item : Market Presentation
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Recommendation of Action
Staff recommends presentation.
To help lay the groundwork for the economic development elements of the Comprehensive Plan,
Christian Beaudoin from Jones Lang Lasalle (JLL) will be presenting a snapshot of regional market
trends. Mr. Beaudoin was the market analysis expert on the Lake Cook Corridor Plan consultant team.
The presentation will aim to provide a broader understand of the current trends and forecast for retail,
commercial, residential, office, and industrial market.
Trustee Liaison
Stein
Monday, August 7, 2023
Staff Contact
Nicole Woods, Community Development
Updated: 7/28/2023 2:40 PM
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2.5
Information Item : Review of 2024 Capital Improvement Program
Requests
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
Public Works will provide an overview of the Capital Improvement Program requests received for the
2024 budget cycle.
ATTACHMENTS:
• Memo Draft CIP 8.7.23 (DOCX)
• 2024 Draft Requests_Working_Copy (PDF)
• 8.7.12_CIP_Requests (PDF)
Trustee Liaison
Stein
Monday, August 7, 2023
Staff Contact
Kyle Johnson, Engineering
Updated: 8/3/2023 1:52 PM
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2.5.a
I L rt T OF
MEMORANDUM
DATE: August 1st, 2023
TO: Dane Bragg, Village Manager
FROM: Kyle Johnson, Deputy Public Works DirectorNillage Engineer
SUBJECT: 2024 Capital Improvement Program Requests
IN
Attached please find the initial presentation of the 2024 Capital Improvement Program (CIP) requests
Staff will present the requests to the Village Board for discussion purposes only.
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2.5.b
Village of Buffalo Grove
CIP Project List By Fund
2024
Project # Title
Year 1
Year 2
Year 3
Year 4
Year 5
Year 1-5
2024
2025
2026
2027
2028
1001 Village Campus Long Range Planning
$
40,000
$ 25,000
$ 25,000
$ -
$ -
$ 90,000
1002 Villagewide Comprehensive Plan and Design
$
22,000
$ -
$ -
$ -
$ -
$ 22,000
1009 Unified Development Ordinance
$
60,000
$ 80,000
$ -
$ -
$ -
$ 140,000
5011 Fire External CPR Device Replacement
$
-
$ 38,000
$ 38,000
$ 19,000
$ -
$ 95,000
5013 Fire Radio Replacement
$
70,400
$ -
$ 175,000
$ 300,000
$ -
$ 545,400
5014 Fire SCBA Equipment
$
2,000
$ 350,000
$ -
$ -
$ -
$ 352,000
5015 Fire Extrication Equipment
$
45,000
$ 65,000
$ 20,000
$ -
$ -
$ 130,000
5016 Automated License Plate Readers
$
45,000
$ 50,000
$ 45,000
$ 45,000
$ 50,000
$ 235,000
5017 Unmanned Aerial Vehicle - Drones
$
10,000
$ -
$ 10,000
$ -
$ 10,000
$ 30,000
Subtotal $
294,400
$ 608,000
$ 313,000
$ 364,000
$ 60,000
$ 1,639,400
MINOR
1003 Flooring Capital Replacement Projects
$
30,000
$ 20,000
$ 20,000
$ 20,000
$ 20,000
$ 110,000
1004 Fire Station #27 Remodel
$
55,000
$ -
$ 99,200
$ 1,240,000
$ -
$ 1,394,200
1005 HVAC Unit Replacements
$
12,000
$ 150,000
$ 120,000
$ 120,000
$ 120,000
$ 522,000
1006 Roof Capital Replacement Projects
$
250,000
$ -
$ -
$ -
$ -
$ 250,000
1007 Combined Area Fire Training Facility
$
980,000
$ -
$ -
$ -
$ -
$ 980,000
1008 Electric Charging Stations
$
780,000
$ 10,000
$ 10,000
$ 10,000
$ 10,000
$ 820,000
1010 Police Headquarters
$
160,000
$ -
$ -
$ 884,800
$ 11,060,000
$ 12,104,800
1011 Fire Station #26 Addition/Remodel
$
-
$ 498,400
$ 6,230,000
$ -
$ -
$ 6,728,400
1012 Public Works Facility
$
19,167,980
$ -
$ -
$ -
$ -
$ 19,167,980
1013 Village Hall
$
-
$ -
$ -
$ 399,200
$ 4,990,000
$ 5,389,200
1014 Fire Station #25 Rebuild
$
882,400
$ 11,030,000
$ -
$ -
$ -
$ 11,912,400
1015 Pace/Metra Facility
$
70,000
$ -
$ -
$ -
$ -
$ 70,000
1019 Outdoor Warning Siren Upgrades/Replacements
$
-
$ 30,000
$ -
$ 30,000
$ 60,000
$ 120,000
1021 Village Entrance Signage
$
150,000
$ 150,000
$ 150,000
$ 50,000
$ -
$ 500,000
1022 Clove Park
$
25,000
$ 150,000
$ 1,500,000
$ -
$ -
$ 1,675,000
Subtotal S
22,562,380
S 12,038,400
$ 8,129,200
$ 2,754,000
$ 16,260,005
S E743'980
3001 Annual Sidewalk Maintenance
3002 Annual Bike Path Maintenance
3003 Annual Street Maintenance
3004 Collector Route Maintenance & Rehabilitation Projects
3005 Lake Cook Road Improvement
3006 Weiland/Prairie Road Improvements
3007 Municipal Parking Facility Maintenance
3008 Buffalo Grove Road Improvement
3009 Arlington Heights Road Improvement
3010 Aptakisic Road Improvement
3011 Median and Street Scalping Improvements
3012 Street Light LED Conversion
3013 Deerfield Parkway Intersection Improvements
4001 Stormwater System Improvements
$ 440,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 1,640,000
$ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000
$ 15,840,000 $ 19,000,000 $ 15,000,000 $ 15,000,000 $ 15,000,000 $ 79,840,000
$ 4,950,000 $ 4,400,000 $ - $ 5,000,000 $ - $ 14,350,000
$ 535,000 $ 535,000 $ 330,000 $ - $ - $ 1,400,000
$ 500,000 $ 1,000,000 $ - $ - $ - $ 1,500,000
$ 117,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 617,000
$ - $ 3,025,000 $ 3,525,000 $ 3,525,000 $ - $ 10,075,000
$ 527,000 $ 527,000 $ - $ - $ $ 1,054,000
$ 19,000 $ - $ $ $ $ 19,000
$ 40,000 $ 30,000 $ $ $ $ 70,000
$ 240,000 $ 65,000 $ 210,000 $ - $ - $ 515,000
$ - $ 300,000 $ - $ - $ - $ 300,000
$ 6,700,000 $ 655,000 $ 655,000 $ 100,000 $ 750,000 $ 8,860,000
$ 30,008,000
$ 30,062,000
$ 20,245,000
$ 24,150,000
$ 16,275,000
$ 120,740,000
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIISIIIIuIIIIbIIIItIIIIoIIIItIIIIaIIII/IIII
II�VI�VI�VI�VI�VI�VI�VI� E=��'p w w� ������������������������������
1020 Water and Truck Weighing Station
$ 400,000
$ 100,000
$ -
$ -
$ -
$ 500,000
6001 Capacity Management Operations and Maintenance
$ 201,000
$ 197,000
$ 204,000
$ 200,000
$ 200,000
$ 1,002,000
6002 Lift Station Repair and Rehabilitation
$ 770,000
$ 130,000
$ 1,300,000
$ 140,000
$ 1,400,000
$ 3,740,000
6003 Pump House Repairs and Upgrades
$ 350,000
$ 50,000
$ 750,000
$ 750,000
$ 750,000
$ 2,650,000
6004 Villagewide Sanitary Sewer Replacement
$ 350,000
$ 350,000
$ 350,000
$ 350,000
$ 350,000
$ 1,750,000
6005 Villagewide Water Main Replacement
$ 4,800,000
$ 9,250,000
$ 6,801,000
$ 4,100,000
$ 4,100,000
$ 29,051,000
6006 Water Loss Management
$ 117,000
$ 120,000
$ 130,000
$ 130,000
$ 120,000
$ 617,000
6007 SCADA Hardware and Software Updates
$ 200,000
$ 150,000
$ 150,000
$ 150,000
$ 50,000
$ 700,000
Subtotal
$ 7,188,000
$ 10,347,000
$ 9,685,000
$ 5,820,000
$ 6,970,000
$ 40,010,000
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5004 Service Delivery Communication Software
$ 100,000
$ 65,000
$ 65,000
$ 65,000
$ 65,000
$ 360,000
5005 Police Tasers
$ 177,600
$ 31,000
$ 32,000
$ 34,000
$ 35,000
$ 309,600
5006 Police/Fire Mobile Devices
$ 74,500
$ 120,000
$ -
$ -
$ -
$ 194,500
5007 Server and Hardware Replacements
$ 86,000
$ -
$ -
$ 35,000
$ -
$ 121,000
5008 Aerial Mapping Ortho Imagery
$ -
$ -
$ 100,000
$ -
$ -
$ 100,000
5009 HR Travel and Training Software
$ 20,000
$ -
$ -
$ -
$ -
$ 20,000
5010 Network & Security Improvements
$ 105,000
$ -
$ -
$ -
$ -
$ 105,000
Subtotal
$ 563,100
$ 216,000
$ 197,000
$ 134,000
$ 100,000
$ 1,210,100
2001 Buffalo Grove Golf Course Improvements
$ 144,000
$ -
$ -
$ -
$ -
$ 114,000
2002 Arboretum Golf Course Improvements
$ 336,000
$ 95,000
$ 85,000
$ 85,000
$ 85,000
$ 686,000
Subtotal
$ "0,000
$ 95, 000
$ 85, 000
$ 15,000
$ 85, 000
$ 830, 000
TOTAL
S1 61.095.880
S 53.366.400
5 38.654.200
'S 33.307.000
S 39.750.000
1 S 226.173.480
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2.6
Information Item : Non -Represented General Wage Increase and
Merit Pool Recommendation
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
Based on internal and external factors, including but not limited to external economic conditions and
internal equity considerations, staff is proposing the following FY 2024 general wage increase and
compensation pool for the Villages non -represented employees to maintain the Villages strategic pay
structure and pay for performance program.
With Board concurrence, staff anticipates incorporating the information contained herein into the FY 2024
budget which will be discussed with the Board on several occasions in the coming months.
ATTACHMENTS:
• 2024 GWI and Merit Pool (DOCX)
Trustee Liaison
Ottenheimer
Monday, August 7, 2023
Staff Contact
Arthur a Malinowski, Human Resources
Updated: 7/27/2023 1:07 PM
Page 1
Packet Pg. 25
VILLAGE OF BUFFALO GROVE
Memorandum
DATE: August 7, 2023
TO: Dane C. Bragg, Village Manager
FROM: Arthur A. Malinowski, Director of Human Resources
Kathryn A. Golbach, Human Resources Manager
SUBJECT: 2024 General Wage Increase and Compensation Pool
Background
On an annual basis, staff evaluates general wage increase and merit pool data for non -represented
employees to support the Village's compensation strategy. Staff's process includes, but is not limited to,
a review of salary data by our comparable communities, an assessment of the Village's financial data and
the external labor market. Based on these internal and external factors, staff has developed the following
analysis and recommendations to aid in the development of the 2024 budget.
Staff has developed several scenarios based on estimated employee totals and estimated general wage
increase percentages. Currently, the Village has 133 non -represented employees (inclusive of full-time
and permanent part-time employees) who will be eligible for a general wage increase in 2024.
Non Represented Employees
Estimated Percent (%) Increase
Number of
Employees
Total Gross
Salary
2.50%
Difference
3.00%
Difference
3.25%
Difference
3.50%
Difference
133
13, 456, 674.92
$13, 793, 091.79
$336, 416.87
$13, 860, 375.17
$403, 700.25
$ 13,894,016.85
$437, 341.93
$13, 927, 658.54
$470, 983.6.
The above matrix presents estimated general wage totals based on the previously mentioned internal and
external factors. Based on a recent general wage increase survey of our comparables as well as other
relevant market data, the average estimated general wage increase for similar situated employers is
forecasted between 2.5% and 3.5% for 2024; However, is it pertinent to note that this is a rough estimate
in that many similar situated employers with a January 1 fiscal year budget, are still in the early stages of
the budgeting process.
A general wage increase of 3.25% would yield a net cost increase of $437,341.93. We should also
acknowledge that estimates for general wage increases for collective bargaining groups will also yield
Page 1 of 3
Packet Pg. 26
2.6.a
higher percentages in the coming year. Contract negotiations including wages for police will begin in late
2023 and early 2024 for firefighter/paramedics and fire lieutenants' wage reopener.
Represented Employees
Estimated Percent (%) Increase
Position
Number of
Employees
Total Gross Salary
2%
Difference
2.50%
Difference
3%
Difference
Firefighter/Paramedic
40
$ 4,156,412.51
$ 4,239,540.76
$ 83,128.25
$ 4,260,322.82
$103,910.31
$ 4,281,104.89
$ 124,692.38
Firefighter/Lieutenant
9
$ 1,218,647.19
$ 1,243,020.13
$ 24,372.94
$ 1,249,113.37
$ 30,466.18
$ 1,255,206.61
$ 36,559.42
Police Officer
41
$ 4,449,660.80
$ 4,538,654.02
$ 88,993.22
1 $ 4,560,902.32
$111,241.52
$ 4,583,150.62
$ 133,489.82
Totals
90
$ 9,824,720.50
510,021,214.91
$ 196,494.411
$10,070,338.51
$245,618.01
$10,119,462.12
$ 294,741.62
Although negotiations have not yet begun for 2024, the above matrix presents estimated general wage
totals. These percentages are based on historical trends from previous collective bargaining agreements
as well as agreements that were ratified this year. The general wage increase received this year for
firefighter/paramedic was 2.0% and 2.5 for Firefighter/Lieutenant. The police officer general wage
increase was 3.5% in 2023. Currently data from our comparables and other similarly situated communities
suggest increased rates for 2024.
The village's compensation strategy is based on a pay for performance model ' which ties a non -
represented employee's merit increase to their annual performance. A merit increase should not be
confused with a bonus as awarded merit increases move emF-loy,,ees through their ran e. Converselti,
our represented employees move through their range via a step plan negotiated through collective
bargaining which is not based an performance, but rather based on their years of service.
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Page 2 of 3
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2.6.a
The chart on page two conveys the difference between a represented employee ani a non -represented
employee as they progress through their pay range. Based on annual increases, it takes 3 years longer
for a non -represented employee to reach their maximum pay within their pay range.
Village
The continues# use the same rating scale as in the past to determine awarded merit pay. For
employeeexample, an employee who scores a 2 ("Needs Improvement") would receive no merit pay, however, an
• scoreswould receive on average a 3% increase. The table
below outlines the merit pool totals over the last three years including estimated totals for 2024.
months
full and are not at # 4 of i range. As employees achieve# + . tenure with the
organization, fewer employees are eligible for merit increases as merit increases are not awarded to
pay range, the smaller their merit increase may be. Conversely, the closer an employee is to the
minimum of pay range, the largerbe.
Merit Pool Totals ($)
Fiscal Year
Merit Pool Total
Number of Employees Eligible
Average Wage Increase ($)
2020
$
197,489.44
38
$
3,033.00
2021
$
220, 794.00
55
$
2,200.00
2022
$
215,402.72
60
$
3,000.00
2023
1 $
333,459.36
1 99
$
3,309.44
2024
1 $
345,130.45 (estimated)
1 85
$
3,500.00 (estimated)
The increase can be attributed to previous ineligible employees becoming eligible as a biproduct of the
Villages comprehensive salary survey, which was completed and approved by the Village Board in
December 2022. Additionally, the increase can be attributed to the number of new hires welcomed in
2022, o became eligiblefor r pro -rated or 0
Based on internal and external factors, staff recommends the Village Board budget a general wage
increase of 3.25% for the Village's non -represented employees for 2024. Additionally, staff recommends
the continuation of the pay for performance program for continued motivation of our outstanding
workforce as well as to maintain equity between out represented and non -represent employees,
including a 2024 estimated merit pool of $345130.45 for those eligible non -represented employees.
Page 3 of 3
Packet Pg. 28
2.7
Information Item : Sunset Home Rule and Utility Taxes
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Recommendation of Action
Staff recommends discussion.
In 2004, the Village Board adopted Ordinance No. 2004-16 amending Chapter 3.40 of the Municipal
Code to increase the Home 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.
ATTACHMENTS:
BOT Memo 8.1.23 Sunset (DOCX)
Trustee Liaison
Pike
Monday, August 7, 2023
Staff Contact
Chris Black, Finance
Updated: 8/4/2023 12:08 PM
Page 1
Packet Pg. 29
2.7.a
DATE: August 7, 2023
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 Home 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 the Home Rule
Sales Tax is budgeted at approximately $3.02 million in the 2023 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 2023 budget revenue for utility taxes totals $2.7 million.
Staff recommends the continuation of the 0.5 percent Home Rule Sales Tax, Municipal
Natural Gas Use Tax, and Municipal Electricity Use Tax for fiscal year 2024. The total of
$5.7 million or 11.2 percent of the General Fund revenue budget is subject to sunset
provisions. Based on the current service levels, lack of sustainable surpluses in other
revenue streams, and no new sources of revenue, staff recommends no changes to Home
Rule Sales Tax or the Electricity or Natural Gas Use Taxes.
Packet Pg. 30
2.8
Information Item : FY 2023 Budget — Six Month Status Update
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Recommendation of Action
Staff recommends discussion.
The six-month revenue and expenditure report provides an overview of current year performance
measured against the 2023 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.
ATTACHMENTS:
• Six Month Report FY 2023 (DOCX)
Trustee Liaison
Pike
Monday, August 7, 2023
Staff Contact
Chris Black, Finance
Updated: 8/4/2023 12:08 PM
Page 1
Packet Pg. 31
2.8.a
The six-month revenue and expenditure report provides an overview of current year performance
measured against the 2023 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 2023 budget consists of $110,476,457 in forecasted total revenue and $126,164,748
in planned expenses. It is important to note that expenditures planned to exceed revenues include
$15.1 million in capital outlays from reserve funds and bond proceeds. The budget includes a
planned surplus in the pension funds ($2.6 million).
In a typical year, revenues and expenses would be approximately 50 percent of the annual
budget. Some major revenue sources have seasonal variations 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 Reiifienue Highlights
Nearly 82 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.
Packet Pg. 32
2.8.a
General Fund revenues are trending at 64.7 percent of the 2023 budget. Collections have
increased 12.5 percent, or $3,667,500from the first six months of 2022. The following is a review
of all major sources of revenue.
Property Taxes - 49.0%
Revenue to date represents the first installments of the 2022 levy extensions for both
Lake and Cook counties. Receipts are typical of historical levels. Generally, 99.8 percent
of taxes levied are collected so budget estimates will likely be realized by year-end. Of
note is the fact that Cook County will not be sending out the second installment tax bill
until November 2023, resulting in a delay in property tax revenues as the bills are normally
due August 111 of each year.
Combined Sales Taxes (Base/Home Rule) — 60.3%
Base Sales Tax and Home Rule net receipts are significantly over budget. Retail sales
have continued, and receipts are approximately 3.76 percent more than the prior year.
The largest generators of sales tax are grocery stores and building and electrical supplies.
• Income Tax — 66.7%
Income tax revenues are performing significantly above budget expectations. The Village
anticipates, based on a revised Illinois Municipal League estimate, to outperform the $5.67
million budget by approximately $0.70 million in 2023. Total receipts are $299,700 less
than the first six months of 2022.
• Use and Utility Taxes (Local Use — 56.7% / Electricity — 45.0 % /
Natural Gas— 77.3%
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. The Local Use Tax is expected to end the year at approximately
the budgeted amount. 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 — 49.2%
Receipts from the Real Estate Transfer Tax has decreased 38.7 percent from the last year.
We anticipate the revenue source will be less than the actual receipts in the prior two year
but meet the annual budget target.
Telecommunications Tax — 46.8%
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 $24,200 from the previous
year. The revenue source continues to decline for many municipalities as
telecommunication providers receipts decrease due to many factors, including the switch
from landlines to mobile phones and data packages not being subject to the tax.
Revenues are expected to end the year at or slightly under budget.
• Prepared Food and Beverage Tax — 59.2%
Revenue to date generated from the Village's 1 percent Prepared Food and Beverage Tax
Packet Pg. 33
2.8.a
is $456,121 or $14,300 less than the previous year. Annual revenues are expected to
exceed pre -pandemic levels for the second consecutive year.
Development Fees/ Permits — 124.8%
Construction and development related fees and licenses are 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 is 86.3 percent more than the first six months of 2022,
mainly due to a large permit related to the new Clove development.
• All Other Revenue
This line is comprised of cable franchise, medical marijuana, storm water, sale of assets
and other fees. These revenues are 122.2% of budget for the first six months of the year
as interest income and grant revenue are well above budget and a parcel of land was sold
for $1.4M, which was not budgeted.
Water "' 5 i er Fund Reiiii(enue fig t
The following chart is the distribution of Water & Sewer Fund revenue and performance to date.
• Sales of Water — 46.40/a
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. Revenue is approximately 2 percent greater than
last year.
• Development fees and Permit revenue is $1.86 million over the six-month budget amount;
mainly due to a $1 million permit for the new Clove Development.
Gold" Entearprise Reiventie Highfight.,q
Buffalo Grove Golf Club
Through June 30, 2023, a total of $724,729 or 50.4 percent of the annual budget was generated
in operating and non -operating revenue. Revenues are 23 percent higher than the same period
the prior year as the weather has been warmer and drier in 2023 than in 2022.
Packet Pg. 34
2.8.a
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 14,755 rounds have
been played as compared to 13,422 a year ago, an increase of 10 percent.
Arboretum Golf Club:
Arboretum Golf Club six-month operating revenue totaled $803,087 or 57.7 percent of annual
budget compared to the previous year's revenue of $590,938, or 43.7 percent of the budget
amount.
To date, 13,482 rounds have been played. At the same point last year 11,634 rounds were played,
a 15.9 percent increase.
Packet Pg. 35
2.8.a
The remaining funds revenues are listed below:
The largest variances year over year are:
• During 2022, the Motor Fuel Tax Fund received a Rebuild Illinois grant in the amount of
$455.000. The Rebuild Illinois grant revenues ended in 2022.
• Capital Projects are funded through operating transfers and grants and at this point half
of those funds have been allocated even though the projects may not have begun at this
point in the year. The budget for Capital Projects- Facilities streets is $7.69 million in
2023 versus $1.0 million in 2022. The budget for Capital Projects — Streets is $2.7 million
in 2023 versus $5.4 million in 2022.
• Debt Service revenue is greater in 2023 due to the amount needed to cover payments on
the new 2022 GO Bonds.
• In 2023, revenue for Information Technology, Central Garage and Building Maintenance
Funds is allocated based on what was spent whereas the revenue for those funds in 2022
was based on a pro -rated amount of 50% of what was budgeted.
• Police and Fire pension fund revenues are a pro -rated portion of the budget. For 2023,
the budget for police pension was increased whereas the budget for fire pension was
decreased, resulting in the variances year over year.
Packet Pg. 36
2.8.a
"General Fund Expendittire Review
Expenditures to date total $23,950,254 or 47.0 percent of the approved budget. This compares
to $22,438,776 or 45.9 percent in FY 2022. General Fund expenses will be likely be slightly less
than the 2023 budget at year end. The following chart depicts expenditure performance:
Personal Services / Personal Benefits — 47.7 12ercent/47.9
Personal Services is the single largest expense account category budgeted by the Village. In terms
of total budget, Personal Services and Benefits account for 77.0 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 8.1 percent
more than the prior year, which is expected due to the increased budget in 2023 as compared to
2022, which included an additional 4 full-time positions.
Most spending categories are below or at expected levels through the first six months of the year.
Legal expenses are 28.4 percent less the prior year amount due to timing of invoices. Operating
transfers are lower than the previous year as the overall budget is lower in 2023 than in 2022.
Other expenses include sales tax incentive payments. Finally, nearly the entire budget for
insurance is expended because the general liability and worker compensation insurance premium
is paid annually in January.
Water e mee d Expense Review
As of June 30, 2023, the Water and Sewer fund has expended 49.6 percent of its budget.
Packet Pg. 37
2.8.a
The largest notable variances are in Commodities and Capital Projects -Water. Commodities are
more because of timing of payments made to Lake County for sanitary sewer fees as well as a
$1M tap on fee paid to the County for the new Clove Development, which is a pass -through
expense. Capital Projects —Water has decreased because a lower volume of capital project work
is budgeted and completed in 2023 as compared to the prior year.
Enterpri.,9e Expense Re iiii�,ie in,
The Buffalo Grove Golf Club and Arboretum Club combined have expended 38.1 percent of the
annual budget in the first six months of fiscal year 2023. The most significant change is in capital
projects as projects have not yet begun in 2023.
Packet Pg. 38
2.8.a
�,111111111 Other Village x trod xp xes,11 ,E,%� p xx
• The Parking lot fund annual major expense for the land lease payment to Com 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.
Packet Pg. 39
2.8.a
The following charts provide the snapshot of budget performance to date for all Village Funds.
General
32,964,805
23,950,254
9,014,550
Water & Sewer
9,327,326
7,757,970
1,569,356
BGGC
724,729
537,649
187,080 .
AGC
803,087
602,038
201,048
Parking Lot
41,887
36,731
5,155 .
Motor Fuel Tax
886,301
437,500
448,801
Local Motor Fuel �Tax
307,096208,246,,,,,,,,,,,,,,,,,,,,,,,
98,850„
Capital Projects Facilities
4,032,689
270,405
31762,283
Capital Projects Streets�"',,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1,373,000,,,,,,,,,,,,,,,,,,,,,,,,,,,
395,218"',,,,,,,,.-
977,782�
Information Technology
641,443
641,443
-
Central Garage
823,456
823,456
J
Building Maintenance
1,005,054
1,005,054
-
Debt Service
2,397,982
1,207,469
1,190,514 .
Police Pension
3,642,149
2,825,078
817,071
Fire Pension
2,780,9672,282,786,,,,,,,,,,,,,,,,,,,
498,181„
Refuse
688,479
536,387
152,092
Total 62,440,449
43,517,685
18,9221765
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 2024 budget.
Packet Pg. 40
2.9
Information Item : Discussion of Preliminary 2024 Property Tax
Levy
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Recommendation of Action
Staff recommends discussion.
In conjunction with the development of the FY 2024 Village Budget, staff is developing a recommendation
for the FY 2023 Property Tax Levy to be extended and collected in 2024.
ATTACHMENTS:
• BOT 8.1.23 Pre Tax Levy (DOCX)
Trustee Liaison
Pike
Monday, August 7, 2023
Staff Contact
Chris Black, Finance
Updated: 8/4/2023 12:08 PM
Page 1
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2.9.a
.:T h
MEMORANDUM
DATE: August 7, 2023
TO: Dane Bragg, Village Manager
FROM: Chris Black, Finance Director
SUBJECT: Proposed 2023 Tax Levy
In conjunction with the development of the FY 2024 Village Budget, staff is developing a recommendation
for the FY 2023 Property Tax Levy to be extended and collected in 2024. The current year's levy (2022 Tax
Levy/collected in 2023) is $21,586,238, minus abatements of $4,470,697, resulting in a net levy of
$17,115,541. The net levy was at the same level as the prior year for an increase of 0.0 percent. The
components of the change were the following:
Property Tax Il..evy IPrior to Abatement — Three Scenarios
Since this preliminary request is being developed early in the budget process and prior to having a full
understanding of general fund revenue needs, staff is presenting three scenarios that increase property
tax revenues for operations by two, three and four percent.
A proposed levy (prior to abatement consideration) of $21,529,963 or a 0.0 percent change would result
in a 2.0 percent increase in the property tax levy after abatement consideration. The components of the
change are as follows:
Table 1. 2.0% Increase Scenario
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2.9.a
A proposed levy (prior to abatement consideration) of $21,701,219 or a 0.8 percent increase would result
in a 3.0 percent increase in the property tax levy after abatement consideration. The components of the
change are as follows:
Table 2. 3.0% Increase Scenario
A proposed levy (prior to abatement consideration) of $231,872,374 or a 1.6 percent increase would result
in a 4.0 percent increase in the property tax levy after abatement consideration. The components of the
change are as follows:
Table 3. 4.0% Increase Scenario
The purpose of this preliminary report is to present the levy including the full debt service amount
(principal and interest) prior to discussion about tax abatement. The final levy will be adjusted contingent
upon capacity within the budget for a supplemental transfer of recurring revenues to lower the gross tax
extension amount.
Corporate (Levy
The amount requested of $9,171,988 represents an increase of 0.0% from the prior year for the Corporate
Levy which is used to support public safety operations. The Village uses the Municipal Cost Index (MCI)
to measure inflation. The MCI is a composite index that adjusts to the cost of materials and supplies,
wages and contracted -for services. The composite index includes the Consumer Price Index, Producer
Price Index, and a construction cost index. The MCI for the annual period ending May 2023 is — 0.6%
percent.
The current year's debt service requirement was $4,751,677. Next year's debt service is $4,407,481. The
debt service payment on the Series 2022 Bonds declines $265,300, making up the majority of the total
decrease. The components of the debt payments are as follows:
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2.9.a
The Village will make debt service payments on five existing bond issues in 2024. The Village has
committed a combination of general fund revenue and water/sewer revenue to service both the 2020
Bonds and 2022 Bonds. When factoring in these abatements, the debt service levy has decreased every
year since 2019.
Peinsioins
An independent actuary calculates the amount to be levied for both the Police and Fire pension funds on
an annual basis. In the past, the Village has funded above the actuarily required contribution if financially
feasible while maintaining a stable property tax levy. The Village's history of meeting its annual pension
funding obligations and high funding levels is an important element to our AAA bond rating.
The proposed levy is above the actuarily required contribution for the second consecutive year. For the
2022 levy (collected in 2023) the property tax levies for police and fire pension were $1.7 million greater
than the required contribution for the two pension funds. For FY 2024, the proposed Firefighter Pension
Levy is $2,371,240 and the Police Pension Levy is $3,446,992. The total combined amount for the police
and fire pension levies is $5,818,162, the same as the prior year, and $576,092 above the required
contribution for the two funds. In future years, the Village will be required to increase the levy for police
and fire pensions. As recent as the 2020 Levy, the combined required contribution for police and fire
pensions increased $604,300.
The additional contribution will allow the Village to lessen the impact of reduced investment returns
projected in the upcoming years and possibly mitigate volatility in future police and fire pension
contributions. The Village Board has successfully used this approach in the past to moderate future tax
levy spikes.
The Illinois Municipal Retirement Fund (IMRF) calculates the employer portion of the pension. The IMRF
and Social Security portion of the levy will remain the same as the prior year.
Equalized Assessed Values (IEAV)
After two consecutive years of decline, the Village's EAV increases by an estimated 1.85 percent for the
2022 levy (collected in 2023). The EAV is not available for the portion of the village located in Cook
County. The total EAV in Buffalo Grove is estimated at $1.78 billion. The change between the two counties
was disproportionate as Lake County increased by 1.56 percent and Cook County is estimated to increase
by 3.0 percent. Lake County properties are assigned 80 percent of the total property tax burden for the
Village.
EAV calculations reside with each county's assessor's office. The final percentage allocation is assigned by
the Illinois Department of Revenue.
Below is a graph depicting the growth of EAV over the last ten years.
Packet Pg. 44
2.9.a
2,000
1,500
1,000
500
0
1
Impact
The tentative proposed levy based on the first scenario detailed earlier in the memo, prior to abatement,
of $21,529,963 or a 0.0 percent change. At this point in the process the gross levy appears as follows:
Considerations
Staff recommends an abatement of $4,072,212 made up of $475,731 on the series 2012 bonds, $379,931
on the Series 2016 Bonds, $2,323,900 on the Series 2020 bonds, and $892,650 on the Series 2022 bonds.
With the proposed abatements, the proposed net levy is $17,457,751, an increase of 2.0 percent or
$342,210 year -over -year. A 3.0 percent and 4.0 percent increase after proposed abatements would result
in increases to the net levy of $513,466 and $684,600, respectively. It should be noted a percentage
increase or decrease in the levy does not equal the change in a homeowner's tax bill, depending upon
Packet Pg. 45
2.9.a
growth in EAV and redistribution of assessed values across different real estate types (residential,
industrial, commercial, and agricultural).
This proposed tax levy request will be formally made at the November 6t" board meeting as part of the
truth -in -taxation resolution. The truth -in -taxation levy growth [which excludes debt service] is estimated
to be 2.0 percent. A public hearing will not be required.
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