2007 CAFRVillage of Buffalo Grove, Illinois
Table of Contents
i
Page(s)
Introductory Section
Table of Contents i - iii
Officers and Officials iv
Letter of Transmittal v - ix
Organization Chart x
Certificate of Achievement for Excellence in Financial Reporting xi
Financial Section
Independent Auditor’s Report 1 - 2
Management’s Discussion and Analysis 3 - 13
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets 14 - 15
Statement of Activities 16 - 17
Fund Financial Statements
Balance Sheet - Governmental Funds 18
Reconciliation of the Balance Sheet - Governmental Funds to
the Statement of Net Assets 19
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds 20
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 21
Statement of Net Assets - Proprietary Funds 22 - 23
Statement of Revenues, Expenses, and Changes in Net Assets -
Proprietary Funds 24
Statement of Cash Flows - Proprietary Funds 25 - 26
Statement of Fiduciary Net Assets 27
Statement of Changes in Fiduciary Net Assets - Pension Trust Funds 28
Notes to Financial Statements 29 - 63
Required Supplementary Information (Unaudited)
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund (Budgetary Basis) 64
Analysis of Funding Progress
Illinois Municipal Retirement Fund 65
Police Pension Fund 65
Firefighters' Pension Fund 65
Employer Contributions
Illinois Municipal Retirement Fund 66
Police Pension Fund 66
Firefighters' Pension Fund 66
Note to Required Supplementary Information 67
Village of Buffalo Grove, Illinois
Table of Contents
ii
Page(s)
Financial Section (Continued)
Supplemental Data (Combining and Individual Fund Financial Statements
and Schedules, Budgetary Schedules, and Schedules of Capital
Assets Used in the Operation of Governmental Funds)
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 68
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds 69
Combining Balance Sheet - Nonmajor Special Revenue Funds 70
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances (Deficit) - Nonmajor Special Revenue Funds 71
Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual - Nonmajor Special Revenue Funds
Illinois Municipal Retirement Fund 72
Motor Fuel Tax Fund 73
Parking Lot Fund 74
Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Debt Service Fund – Facilities Development Fund 75
Combining Balance Sheet - Nonmajor Capital Projects Funds 76
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances (Deficit) - Nonmajor Capital Projects Funds 77
Schedule of Revenues, Expenditures, and Changes in
Fund Balances (Deficit) - Budget and Actual - Nonmajor Capital Projects Funds
Street Maintenance Fund 78
Facilities Development Fund 79
Proprietary Funds
Schedule of Operating and Nonoperating Revenues,
Operating and Nonoperating Expenses and Transfers - Budget and Actual
(Budgetary Basis)
Waterworks and Sewerage Fund 80
Arboretum Golf Course 81
Combining Statement of Net Assets - Nonmajor Enterprise Funds 82
Combining Statement of Revenues, Expenses and Changes in Net Assets
- Nonmajor Enterprise Funds 83
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 84
Village of Buffalo Grove, Illinois
Table of Contents
iii
Page(s)
Financial Section (Continued)
Supplemental Data (Continued)
Nonmajor Proprietary Funds
Schedule of Operating and Nonoperating Revenues, Operating and
Nonoperating Expenses and Transfers - Budget and Actual (Budgetary Basis) -
Buffalo Grove Golf Course 85
Schedule of Operating Revenues and Operating Expenses - Budget
and Actual (Budgetary Basis) - Refuse Service Fund 86
Fiduciary Funds
Combining Statement of Fiduciary Net Assets - Pension Trust Funds 87
Combining Statement of Changes in Fiduciary Net Assets -
Pension Trust Funds 88
Schedule of Changes in Fiduciary Net Assets - Budget and Actual
Police Pension Fund 89
Firefighters' Pension Fund 90
Statement of Changes in Assets and Liabilities - Agency Fund -
School and Park Donations 91
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source 92
Schedule by Function and Activity 93
Schedule of Changes by Function and Activity 94
Statistical Section (Unaudited)
Net Assets by Component – Last Four Fiscal Years 95
Change in Net Assets – Last Four Fiscal Years 96 - 97
Fund Balances of Governmental Funds – Last Ten Fiscal Years 98
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 99 – 100
Assessed Value and Actual Value of Taxable Property – Last Ten Levy Years 101
Property Tax Rates – Direct and Overlapping Governments – Last Ten Levy Years 102
Principal Property Taxpayers – Current Year and Five Years Ago 103
Property Tax Levies and Collections – Last Ten Levy Years 104
Sales Tax Base and Number of Principal Payers – Taxable Sales by Category –
Last Ten Calendar Years 105
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 106
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 107
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 108
Direct and Overlapping Governmental Activities Debt 109
Schedule of Legal Debt Margin 110
Pledged Revenue Coverage – Last Ten Fiscal Years 111
Demographic and Economic Information – Last Ten Fiscal Years 112
Principal Employers – Current and Five Years Ago 113
Full-Time Equivalent Employees – Last Ten Fiscal Years 114
Operating Indicators – Last Ten Fiscal Years 115
Capital Asset Statistics – Last Ten Fiscal Years 116
Village of Buffalo Grove, Illinois
Officers and Officials
Eight Months Ended December 31, 2007
iv
Elliott Hartstein Janet M. Sirabian
Village President Village Clerk
Village Trustees
Jeffrey Berman Bruce Kahn
Jeffrey Braiman Brian Rubin
DeAnn Glover Steve Trilling
Joseph Tenerelli
Treasurer
* * * * * * * * * *
William H. Brimm
Village Manager
Scott Anderson Ghida Neukirch
Director of Finance and General Deputy Village Manager
Services
Steve S. Balinski Robert Pfeil
Chief of Police Village Planner
Gregory P. Boysen, P.E. William G. Raysa
Director of Public Works Village Attorney
Robert Giddens Edward Schar
Director of Management Information Systems Director of Building and Zoning
Richard Kunekler, P.E. Terrence Vavra
Village Engineer Fire Chief
Arthur Malinowski Katie Skibbe
Director of Human Resources Assistant Finance Director
Carmen Molinaro
Director of Golf Operations
vii
Long-term Financial Planning
Transportation-related projects represent some of the major initiatives over the next five years. It is estimated that
$16.6 million will be spent on local street maintenance programs over the next five years to ensure the continued level
of roadway quality. These improvements continue to be cash financed. Due to the increasing scope of each year’s
projects, and the related costs, measured against the relatively static level of state funding (supplemented by Village
transfers) additional sources of funding will be presented for the FY 2009 budget in order to maintain the current level
of maintenance standards.
The only significant facility expansion contemplated in the next five years is an expansion of the Public Service Center
and major remodeling and expansion needs at several of the fire stations.
Major Initiatives
Comprehensive Plan Update. The Village continues with the update of its Comprehensive Plan. The Comprehensive
Plan serves as the principal policy and planning document guiding land use and development within the Village and
areas adjacent to its boundaries. The Village has held a series of public meetings, reviewed corridor planning,
redevelopment opportunities, annexation opportunities, land use options, and met with our government partners. The
Village staff and Plan Commission have been working diligently to prepare the Plan and will thereafter provide a
report and recommendation to the Village Board for adoption.
Economic Development Work Plan. The Village's Economic Development Strategy Plan sets forth an ambitious, yet
achievable, strategic economic development agenda for the Village of Buffalo Grove each year. The purpose of the
Plan is to articulate a set of measurable strategies and actions to facilitate continued economic growth and new
opportunities in the Village’s zoning districts. The Plan identifies efforts to be made and strategies to follow to work
with property owners, developers, brokers, retailers, consultants and others for continued economic prosperity and
enhanced vitality of the Village. The Plan is intended to provide guidance and direction for economic development
efforts within the Village. Copies of the Plan are available upon request from the Office of the Village Manager, or the
Plan can be obtained on the Village's web site at www.vbg.org.
Selection of New Fire Chief. The Village, in conjunction with a nationally recognized professional recruiting firm
specializing in public sector employment, conducted a search to fill a vacancy for fire chief. After an exhaustive
process, the Deputy Chief of Administration for the Lisle Woodridge Fire Protection District was selected.
Approximately $2.5 million was spent on the Motor Fuel Tax roadway maintenance program.
The Village completed an eight month transitional budget to bridge the gap to January 1, 2008 whereby the fiscal year
will follow the calendar year.
New Developments:
Berenesa Plaza. In September, 2007 the Village Board approved an amended Annexation Agreement and
Preliminary Plan for the development of Berenesa Plaza located at the north and southwest corners of Milwaukee
Avenue & Deerfield Parkway. The Preliminary Plan anticipates the development of a 166-room Hyatt Places Suites
Hotel, more than 50,000 s.f. of office, and more than 98,000 s.f. of retail/restaurant.
Land & Lakes. The Village is progressing with the annexation and development of the 60-acre site off Milwaukee
Avenue, north of Busch Parkway. The development will consist of relocating the existing landscape transfer facility to
the approximate 6-acre parcel east of Milwaukee Avenue, and annexation and zoning of the western 60-acre parcel
to B-3 for commercial development. The Concept Plan anticipates more than 700,000 s.f. of commercial
development on the west side of Milwaukee Avenue.
viii
Waterbury Place. Edward R. James is developing a mixed-use residential development on a 30-acre tract of land on
the south side of Half Day Road (IL Rt. 22), east of the railroad tracks. The site includes 62 row homes, 42 tuckunder
units, 30 single family villas, and 12 duplexes.
Cash Management policies and practices. Cash temporarily idle during the year was invested in certificates of
deposit, the Illinois State Treasurer’s Investment Pool (Illinois Funds), and the Illinois Metropolitan Investment Fund
(IMET). The maturities of the investments range from being immediately accessible (Illinois Funds), 180 days or less
(CDs), 2 to 3 years (IMET). The pension funds typically have a higher rate of return due to the long-term character of
most of their investment holdings. Investment income includes appreciation in the fair market value of investments.
Risk management. The Village continues to participate in a public entity risk pool to protect against casualty losses.
The Intergovernmental Risk Management Agency (IRMA) insures first party property losses, third party liability claims,
worker’s compensation claims and Public Official Liability claims up to $2,000,000. In addition, various control
techniques, including employee accident prevention training, have been implemented during the year to minimize
losses.
The Village self insures its health care program. Through work with a benefits consultant, the plan is reviewed on an
annual basis for funding and coverage adequacy. The Village is protected from catastrophic losses in the self insured
plan through the purchase of a stop-loss insurance policy. The Village has begun to focus on preventative measures
and education as a means of managing the risk and financial exposure of an unstable health industry.
Pension and other postemployment benefits. The Village sponsors separate single-employer defined benefit
pensions for both its police officers and firefighters. Each year, an independent actuary engaged by the Village
calculates the amount of the annual contribution that the Village, as employer, must make to the plans to ensure that
they will be able to fully meet their obligations to retired employees on a timely basis based on generally accepted
and statutory actuarial assumptions. As a matter of policy, the Village fully funds each year’s annual required
contribution to the pension plan as determined by the actuary. As a combined result of the Village’s funding policy,
the returns earned by the fund, and the level of retirement activity within the fund, the level of funding, as of April 30,
2006 (last year computed by actuary), is 61.49% of the actuarial accrued liabilities for the Police Pension Fund and
66.37% of the Firefighters Pension Fund. Due to the shortened fiscal period, the Village has opted to not conduct
actuarial valuations for the pension funds as of April 30, 2007, rather the valuations will be conducted as of December
31, 2007.
The Village also participates in a multi-employer defined benefit program for its non-public safety employees. These
benefits are provided through a state-wide plan managed by the Illinois Municipal Retirement Fund (IMRF). The
Village has no obligation to make, nor does it control, the employee benefits offered through this plan. The Village is
only responsible for its contractual payments to IMRF. Additional information on the Village’s pension arrangements
can be found in Note 6 to the financial statements.
Awards and acknowledgments. The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the Village of Buffalo Grove for its comprehensive annual
financial report (CAFR) for the fiscal year ended April 30, 2007. This was the twenty-sixth consecutive year that the
government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government
published an easily readable and efficiently organized CAFR. This report satisfies both GAAP and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to
meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its
eligibility for another certificate.
McGladrey & Pullen, LLP is a member firm of RSM International –
an affiliation of separate and independent legal entities.
- 1 -
Independent Auditor’s Report
To The Honorable Village President
Members of the Board of Trustees
Village of Buffalo Grove, Illinois
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
each major fund and the aggregate remaining fund information of the Village of Buffalo Grove, Illinois, as of and for
the eight months ended December 31, 2007, which collectively comprise the Village’s basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the management of the Village of
Buffalo Grove, Illinois. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund and the aggregate
remaining fund information of the Village of Buffalo Grove, Illinois, as of December 31, 2007, and the respective
changes in financial position and cash flows, where applicable, thereof for the eight months then ended in conformity
with accounting principles generally accepted in the United States of America.
As discussed in Note 1, the Village has changed its fiscal year end from April 30 to December 31, effective May 1,
2007. As such, this report covers an eight month period beginning May 1, 2007 through December 31, 2007.
The required supplementary information which includes management’s discussion and analysis (pages 3 – 13),
budgetary comparison information (page 64), pension related information (pages 65 and 66) and note (page 67) is not
a required part of the basic financial statements but is supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
- - 2
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
Village of Buffalo Grove, Illinois’ basic financial statements. The combining and individual nonmajor fund financial
statements and other schedules listed in the table of contents as supplementary information (pages 68 – 94), are
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The accompanying introductory and statistical sections, as listed in the table of contents, are presented for purposes
of additional analysis and are not a required part of the basic financial statements. This information has not been
subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we
express no opinion on them.
Schaumburg, Illinois
June 25, 2008
- - 3
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2007
The Management’s Discussion and Analysis (MD&A) offers the readers of the Village of Buffalo Grove’s financial
statements this narrative overview and analysis of the financial activities of the Village of Buffalo Grove for the eight
month period ended December 31, 2007. The information presented here should be considered in conjunction with
additional information provided in the letter of transmittal, which is found on pages v-ix.
Financial Highlights
• The assets of the Village exceeded its liabilities at December 31, 2007 by $141.2 million (net assets). Net
assets for governmental activities account for $81 million or 57% of the total and business-type activities
account for $60.2 million. Of this amount, $44.7 million is unrestricted and may be used to meet the Village’s
ongoing obligations.
• The Village’s net assets decreased by $10.6 million (or 7%) during the eight month period ended
December 31, 2007. The governmental net assets decreased by $9.5 million and the business-type activities
net assets decreased by $1.0 million. The conversion of the fiscal year to a calendar year and the
accounting treatment of property taxes within the eight month fiscal period was the primary reason for the
decrease in net assets.
• As of December 31, 2007, the Village of Buffalo Grove’s governmental funds reported combined ending fund
balances of $30.4 million, a decrease of $ 3.8 million from the amounts reported at April 30, 2007. Of this
amount, $18 million was unreserved and undesignated.
• The unreserved, undesignated fund balance for the General Fund represented 55% of total General Fund
expenditures.
Overview of the Financial Statements
The financial statement’s focus is on both the Village as a whole (government-wide) and on the major individual
funds. The Village of Buffalo Grove’s basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Also included in the
report is required supplementary information.
Government-wide financial statements
The government-wide financial statements (found on pages 14-17) report information about the overall finances of the
Village similar to those statements produced by a corporate enterprise. The statement of net assets presents
information on all the Village’s assets less liabilities to show the bottom line results of the Village and its governmental
and business-type activities. This statement combines and consolidates governmental fund’s current financial
resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of
accounting and economic resources measurement focus.
The statement of activities provides information which shows how the Village’s net assets changed as a result of the
costs of various services provided. This is intended to summarize and simplify the user’s analysis of the cost of
various governmental services and/or subsidy to various business-type activities.
The Statement of Net Assets and Statement of Activities distinguish functions of the Village that are financed primarily
by taxes, intergovernmental revenue, and charges for services (governmental activities) from functions where user
fees and charges to customers help to cover all or most of all costs of services (business-type activities).
- - 4
The Village’s governmental activities reflect the Village’s basic services, including police, fire, public works, building
and zoning, and administration. Property taxes, shared and home rule sales tax, shared state income tax, real estate
transfer tax, and telecommunication tax finances the majority of these services. The Business-type Activities reflect
private sector type operations and include the Waterworks and Sewerage Fund, the Refuse Fund, and the Buffalo
Grove Golf Course and Arboretum Golf Course.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The Village uses fund accounting to ensure and demonstrate fiscal accountability. The
Village uses governmental, proprietary, and fiduciary financial statements to provide more detailed information about
the Village’s most significant funds rather than the Village as a whole.
The Governmental Major Fund (see pages 18-21) presentation is presented within the context of near-term inflows
and outflows of spendable resources to provide a near, or short-term view of the Village’s operations. A reconciliation
is prepared of the governmental funds Balance Sheet to the Statement of Net Assets and the Statement of Revenue,
Expenditures, and Changes in Fund Balances of governmental funds to the Statement of Activities.
The Village of Buffalo Grove maintains eight individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in
fund balances for the General Fund, which is classified as a major fund. Data on the other governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds
is provided in the form of combining statements elsewhere in the report.
While the Business-type Activities column on the Business-type Fund Financial Statements (see pages 22-26) is the
same as the Business-type column at the Government-Wide Financial Statement, the governmental Major Funds
Total column requires a reconciliation because of the different measurement focus (current financial resources versus
total economic resources) which is reflected on the page following each statement (see pages 19 and 21). The flow of
current financial resources will reflect bond proceeds and interfund transfers as other financial sources as well as
capital expenditures and bond principal payments as expenditures. The reconciliation will eliminate these transactions
and incorporate the capital assets and long-term obligations (bonds and others) into the Governmental Activities
column (in the government-wide statements).
Infrastructure Assets
The Village’s infrastructure including streets, land (including right-of-way), and storm sewers are reported within the
Governmental column in the Government-Wide Statements. The Village has chosen to depreciate assets over their
estimated useful lives. If a road project is considered maintenance – a recurring cost that does not extend the road’s
original useful life or expand its capacity – the cost of the project will be expensed. An “overlay” of a road will be
considered maintenance whereas a “rebuild” of a road will be capitalized.
Government-wide Financial Analysis
As previously reported, the assets of the Village of Buffalo Grove exceeded liabilities by $141.2 million as of
December 31, 2007. The largest portion of the Village’s net assets reflects its investment in capital assets ($96.4
million or 68%) including land, buildings, infrastructure, and equipment, less any outstanding debt related to the
original acquisition. The Village uses these capital assets to help facilitate service delivery to its residents;
consequently, these assets are not available for future spending. Although the Village’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay the debt must be
provided from other sources, since the capital assets themselves cannot be used to reduce these liabilities.
- - 5
An additional portion of the Village’s net assets ($.1 million) represents resources that are subject to external
restrictions on how they may be used. This amount is restricted for debt service obligations. The remaining balance of
unrestricted net assets ($44.7 million or 31.7%) may be used to meet the government’s ongoing service obligations to
residents and provide for payments to all creditors. At the end of the current fiscal period, the Village is able to report
positive balances in all three categories of net assets for the government as a whole.
There were no new debt financed capital projects initiated during the shortened transitional fiscal period.
The Village’s combined net assets decreased by $10.6 million as a result of governmental activities decreasing by
$9.5 million and business-type activities decreasing by $1.0 million. Of the $9.5 million decrease in governmental
activities, approximately $8.7 million was due to the change in fiscal year and the recognition of property tax revenues
and the corresponding adjustment to deferred property taxes. Net assets of the Village’s governmental activities were
$81.0 million. The Village’s unrestricted net assets for governmental activities that are available for day-to-day
financial operations were $27.2 million compared to $35.5 million at April 30, 2007. The net assets of business-type
activities were $60.2 million. The business-type activities unrestricted net assets decreased by $1 million from the
previous year.
Please refer to table below for condensed Statement of Net Assets:
Dec. 31 April 30 Dec. 31 April 30 Dec. 31 April 30
Current and other assets 46.0 $ 44.9 $ 18.4 $ 19.3 $ 64.4 $ 64.2 $
Capital assets 62.6 63.9 42.6 43.2 105.2 107.1
Total assets 108.6 $ 108.8 $ 61.0 $ 62.5 $ 169.6 $ 171.3 $
Long-term liabilities 8.7 9.6 - - 8.7 9.6
Other liabilities 18.9 8.7 0.8 1.3 19.7 10.0
Total liabilities 27.6 $ 18.3 $ 0.8 $ 1.3 $ 28.4 $ 19.6 $
Net Assets:
Invested in capital
assets, net of debt 53.7 $ 53.7 $ 42.7 $ 42.7 $ 96.4 $ 96.4 $
Restricted 0.1 1.3 - - 0.1 1.3
Unrestricted 27.2 35.5 17.5 18.5 44.7 54.0
Total net assets 81.0 $ 90.5 $ 60.2 $ 61.2 $ 141.2 $ 151.7 $
Governmental Business-Type
Activities Activities Total
Table 1
Statement of Net Assets
As of December 31, 2007 and April 30, 2007
(in millions)
- - 6
At December 31, 2007, the Village of Buffalo Grove as a whole had assets greater than its liabilities by $141.2 million.
The majority (66.3%) of the Village’s net assets of governmental activities are invested in capital assets. The assets
are net of the outstanding principal of debt associated with the acquisition of these capital assets.
The net assets of the Village’s business-type activities are $60.2 million. As with the governmental activities, the
majority (70.9%) of the net assets are invested in capital assets.
There are six basic (normal) transactions that will affect the comparability of the Statement of Net Assets summary
presentation.
• Net Results of Activities – which will impact (increase/decrease) current assets and unrestricted net assets.
• Borrowing of Capital – which will increase current assets and long-term debt.
• Spending Borrowed Proceeds on New Capital – which will reduce current assets and increase capital
assets. There is a second impact, an increase in invested in capital assets and an increase in related net
debt which will not change the invested in capital assets, net of debt.
• Spending of Non-borrowed Current Assets on New Capital – which will (a) reduce current assets and
increase capital assets and (b) will reduce unrestricted net assets and increase invested in capital assets,
net of debt.
• Principal Payment on Debt – which will (a) reduce current assets and reduce long-term debt and (b) reduce
unrestricted net assets and increase invested in capital assets, net of debt.
• Reduction of Capital Assets through Depreciation – which will reduce capital assets and invested in capital
assets, net of debt.
Changes in Net Assets
The Village’s total revenues and expenses for governmental and business-type activities are reflected in the following
chart:
Revenue Dec. 31 April 30 Dec. 31 April 30 Dec. 31 April 30
Program Revenues
Charges for Service 2.2 $ 3.4 $ 7.7 $ 10.0 $ 9.9 $ 13.4 $
Grants and Contributions
Operating 1.0 1.5 - - 1.0 1.5
Capital - - 0.5 0.4 0.5 0.4
General Revenue
Property 0.7 10.2 - 0.2 0.7 10.4
Sales and Use Taxes 5.7 8.6 - - 5.7 8.6
Income Tax 2.7 4.3 - - 2.7 4.3
Telecommunications Tax 2.0 2.4 - - 2.0 2.4
Property Transfer Tax 0.6 1.0 - - 0.6 1.0
Other 2.5 2.8 0.3 0.6 2.8 3.4
Total Revenue 17.4 34.2 8.5 11.2 25.9 45.4
Changes in Net Assets
For the Eight Month Period Ended December 31, 2007 and the Year Ended April 30, 2007
(in millions)
Total Primary
Government
Governmental
Activities
Business-Type
Activities
- - 7
Expenses Dec. 31 April 30 Dec. 31 April 30 Dec. 31 April 30
Governmental Activities
General Government 4.0 4.6 - 4.0 4.6
Public Safety 15.4 19.0 - 15.4 19.0
Public Works 8.2 12.5 - 8.2 12.5
Interest 0.2 0.5 - 0.2 0.5
Business Type
Water and Sewer - - 5.2 7.3 5.2 7.3
Refuse Services - - 0.8 1.0 0.8 1.0
Golf - - 2.6 3.1 2.6 3.1
Total Expenses 27.8 36.6 8.6 11.4 36.4 48.0
Excess before transfers and special items (10.4) (2.4) (0.1) (0.2) (10.5) (2.6)
Transfers In (Out)0.9 0.5 (0.9) (0.5) - -
Special items - - - - -
Change in Net Assets (9.5) (1.9) (1.0) (0.7) (10.5) (2.6)
Net assets - beginning 90.5 92.4 61.2 61.9 151.7 154.3
Net assets - ending 81.0 $ 90.5 $ 60.2 $ 61.2 $ 141.2 $ 151.7 $
Activities Activities Government
Governmental Business-Type Total Primary
Revenues for the Village’s governmental activities for the eight month period ended December 31, 2007 were $17.4
million. As stated previously, the revenue and expenditure (expense) comparisons are based on eight months ending
December 31, 2007 versus twelve months for the fiscal year ending April 30, 2007. Property tax revenue is typically
the largest component of General revenues and was significantly less due to the aforementioned accounting
treatment of the revenue for the transitional fiscal period. The remaining revenues have been viewed with an
expectation of the two-thirds of the previous year’s totals. There are four basic impacts on revenues as listed below:
• Economic Condition – which can reflect a declining, stable or growing economic environment and has a
substantial impact on state income and sales tax revenue as well as public spending habits for housing
construction or home improvements.
• Increase/Decrease in Village approved rates – while certain tax rates are set by statute, the Village Board
has significant authority to impose and periodically increase/decrease rates (water, licensing and fees, home
rule sales tax, property tax, etc.)
• Changing patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring) – certain
recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-
recurring (or one-time) grants are less predictable and often distorting in their impact on year to year
comparisons.
• Market Impacts on Investment Income – the Village’s investment portfolio is structured to meet certain
liabilities as they become due and the income generated is subject to market conditions that may cause the
investment income to fluctuate.
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Revenues by Source - Governmental Activities
13%
6%
4%
35%
16%
12%
1%
13%Charges for Services
Operating Grants and Contributions
Property Tax
Sales Taxes
Income Tax
Telecommunications Tax
Real Estate Transfer Tax
Other
The cost of all governmental activities this year was $27.7 million. The Statement of Activities on pages 16-17 shows
that $2.2 million was financed by those who use the services; $1.0 million was financed by operating and capital
grants and contributions, with the Village’s general revenues and beginning net assets financing $24.5 million.
The Village’s four largest programs are public safety, public works, general government, and interest and fiscal
charges. The graph below shows the expenses and programs revenues generated by governmental activities:
0.00
5,000,000.00
10,000,000.00
15,000,000.00
20,000,000.00
General
Government
Public Safety Public Works Interest and
Fiscal Charges
Expenses and Program Revenues - Governmental Activites
Expenses Program Revenues
The primary reasons for increases in expenses are:
Introduction of New Programs – within the functional expense categories (Public Safety, Public Works, General
Government, etc.) individual programs may be added or deleted to meet changing community needs.
Increase in Authorized Personnel – changes in service demand may cause the Village Board to increase/decrease
authorized staffing. Personnel costs (salary and related benefits) represent approximately 47% of the Village’s
operating cost.
- - 9
Business-type Activities.
Revenues for the Village’s business-type activities were $8.5 million for the eight month period ended December 31,
2007. Ninety-three (93%) percent of the revenues come from charges paid by the users of the services, 5.0% from
Capital Grants and Contributions, and 2.0% from Investment income.
Revenues by Source - Business-type Activities
Charges for Services
93%
Operating Grants and
Contributions
0%
Property Tax
0%
Capital Grants and Contributions
5%
Other
2%
Charges for Services
Operating Grants and Contributions
Property Tax
Capital Grants and Contributions
Other
The costs of these activities were $8.6 million. The Statement of Activities is on pages 16-17.
Financial Analysis of the Village’s Funds
Governmental Funds
The Village’s governmental funds for the eight month period ended December 31, 2007 reflect a combined fund
balance of $30.4 million in its balance sheet on page 18. This represents a $3.8 million dollar decrease or 11.2% over
the balance posted last year. Of the total fund balance of $30.4 million, $18.0 million is unreserved and undesignated
indicating availability for continuing Village services, $.1 million is reserved for debt service obligations, $10.3 million
is designated for capital replacement, $1.8 million is reserved for prepaid insurance and inventory.
Major Governmental Funds
The General Fund is the Village’s main operating fund and primarily accounts for municipal services including public
safety (police and fire), public works and general administration. The Fund Balance of the General Fund decreased
by $2.4 million or 8.1% from April 30, 2007 (from $29.4 million to $27.0 million). As noted previously, the property tax
calendar and related revenue recognition resulting from the conversion to a calendar fiscal year was the primary
cause of the decrease. Of the total fund balance, $25.2 million is unreserved indicating availability for continuing
Village services. $10.3 million is unreserved but designated for capital equipment and technology replacement or
enhancements. Reserved fund balance of $1.8 million includes, $1.7 million in reserves for prepaid insurance and
$.07 million for garage inventory.
The General Fund’s revenues decreased by $10.5 million (34%). Most of the decrease is due to the shortened fiscal
period and the property tax accounting. The Village did also eliminate the vehicle sticker registration program effective
May 1, 2008. Revenue comparisons (based on an annualized basis) show little variance for sales tax (home rule and
base), income tax, and telecommunications tax for the current fiscal year. Real estate transfer tax (annualized)
decreased approximately 9.5% from the previous period. The decrease was mitigated by several extraordinary
transactions (sales greater than $1 million) during the eight month period. Interest income (annualized) also
decreased about 10% as the Federal Fund rates were lowered adversely impacting all General Fund short term
investments.
- - 10
Expenditures decreased by $9.0 million (25%). Normalizing expenditures to create a true comparison of expenditures,
intuitively the year ending April 30, 2007 should be reduced by a third. Based upon that figure, expenditures
increased by $3.0 million or 11%. Most of the increase was due to pay plan modifications, increases in commodities,
and the fact that normalization does not effectively address construction programs that are completed in the eight
month fiscal period. The deficiency of revenues over expenditures was $1.0 million for the eight months ended
December 31, 2007, as compared to an excess of revenues over expenditures of $2.4 million for the year ended
April 30, 2007. Net other financing uses increased by $.1 million primarily due to more revenue being transferred to
the Motor Fuel Tax Fund as a fixed percentage of home rule sales tax, as dictated by Village policy. The General
Fund contributed $.5 million to pay-as-you-go financing of capital projects in FY07.
Proprietary Funds
The Village of Buffalo Grove’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
The Village reports the Waterworks and Sewer Fund as a major proprietary fund. This fund accounts for all of the
operations of the municipal water system. Water is purchased wholesale from the City of Evanston through the
Northwest Water Commission of which the Village is one of four members. Sanitary sewer service is provided by the
Lake County Public Works Department for those property owners in Lake County. The Village acts as a billing partner
to reduce administrative costs. The Metropolitan Water Reclamation District of Greater Chicago handles all the
sanitary sewer treatment for Cook County residents and recovers its expenses through a property tax levy.
The intent is for the Waterworks and Sewer Fund to breakeven as user charges are structured to offset operations of
the water and sewer system, including labor costs, supplies, infrastructure maintenance, and reserves for capital
replacement. The fund posted an operating loss of $.4 million for the eight months ended December 31, 2007.
Unrestricted net assets of the Waterworks and Sewer Fund at the end of the current fiscal year was $17.7 million and
is available to finance any major infrastructure improvements or enhancements to the water system. Revenue
collected from the sale of water was about a $.4 million (6%) more (annualized) than April 30, 2007. Weather always
plays a significant role in the water usage variance.
The Village also reported the Arboretum Golf Course Fund as a major proprietary fund. This fund accounts for all
operations of the Arboretum Golf Course. The course reported a year end unrestricted net asset deficit balance of $.3
million. Total annualized revenues were approximately $.1 million less that the previous year due to lower play levels
experienced. The Village of Buffalo Grove owns and operates two municipal golf courses, both were severely
impacted by storms in August that shut down operations for several days during the peak playing season.
General Fund Budgetary Highlights
Over the course of the year, there were no modifications made to the budget/appropriation ordinance. The General
Fund’s actual revenues fell short of budget by $2.2 million and actual expenditures were $.2 million more than
budgeted. The reason that revenues were less than budget were due to the impact on property taxes of changing the
fiscal year to December 31. The reason expenditures exceeded the budget is mainly due to a change in the pay
system. Previously, qualified employees were paid an annual bonus. The bonus system was eliminated and in lieu
of the bonus, eligible employees were moved to the top of the approved pay range. This moved certain payroll
expenditures into 2007 that were anticipated (budgeted) to be paid in 2008.
- - 11
Capital Assets
At the end of December 31, 2007, the Village had a combined total of capital assets of $105.3 million invested in a
broad range of capital assets including buildings, streets, storm sewers, and equipment. This amount represents a net
decrease (including additions and deductions) of $1.8 million.
Dec. 31 April 30 Dec. 31 April 30 Dec. 31 April 30
Land 36.0 $ 36.0 $ 6.2 $ 6.2 $ 42.2 $ 42.2 $
Construction in progress - - 0.2 - 0.2 -
Land Improvements - - 0.1 0.1 0.1 0.1
Buildings 5.4 6.0 6.4 6.8 11.8 12.8
Equipment and Vehicles 3.3 3.1 - - 3.3 3.1
Streets 9.5 9.8 - - 9.5 9.8
Storm Sewers 8.4 9.0 - - 8.4 9.0
Water and Sewer Infrastructure - - 29.8 30.1 29.8 30.1
Total 62.6 $ 63.9 $ 42.7 $ 43.2 $ 105.3 $ 107.1 $
Major additions to capital assets during the year included the following (in millions):
Governmental Activities:
Building improvements 0.1 $
Vehicles and equipment 0.6 $
Business-type Activities:
Water and Sewer System Additions 0.5 $
Governmental Business-Type
Activities Activities Total
As of December 31, 2007 and April 30, 2007
Capital Assets at Year End
Net of Depreciation
(in millions)
The Governmental Activities net capital assets decreased from last year by $1.3 million (2%). This is attributable to
the fact that the amount of additions was less than the amount of depreciation expensed this year.
For the Business-type activities, the net capital assets decreased by $.5 million or (1%).
The most significant capital activity was the scheduled vehicle replacements made during the year as part of a
systematic funding and replacement program for all Village-owned vehicles and donated developer assets as part of
sewer system capacity improvements for new developments.
Detailed information on the Village’s capital assets is included in Note 4 on pages 39-41.
- - 12
Long-Term Debt
At year end, the Village had total bonded debt outstanding of $8.9 million as shown in the next table:
Dec. 31 April 30 Dec. 31 April 30 Dec. 31 April 30
General obligation bonds 8.9 $ 10.2 $ -$ 0.2 $ 8.9 $ 10.4 $
Contract payable - Northwest
Water Commission - - - 0.4 - 0.4
8.9 $ 10.2 $ -$ 0.6 $ 8.9 $ 10.8 $
Total
Outstanding Debt
General Obligation Bonds and NWWC Contract Payable
(in millions)
Governmental
Activities Activities
Business-Type
As of December 31, 2007 and April 30, 2007
The Village maintains assigned “Aa1” and “AA+” ratings on its general obligation bonds respectively from both
Moody’s Investor Service and Standard and Poor’s Corporation.
The total per capita general obligation (GO) debt for the community stands at $202.05 and represents .43% of the
percentage of equalized assessed valuation of the Village.
The Village, under its home rule authority, does not have a legal debt limit. The Village is currently reviewing several
capital projects budgeted for FY 2008 that may require the issuance of debt.
Detailed information on the Village’s long-term debt can be found in Note 5 on pages 41-43.
Economic Factors and Next Year’s Budgets and Rates
The Village’s share of the state sales and income tax plus the property tax continue to represent the largest portion of
the General Corporate Fund Revenue. The Village will remain diligent about protecting its established sales tax base,
and continue to move forward with its economic development initiatives, to enhance the economic climate of the
community. Sales tax will be impacted in FY 2008 as three auto dealerships are relocating operations to larger
parcels outside of the Village. The fiscal impact will be towards the middle to end of the budget year. Management is
working diligently to reoccupy the properties.
In order to avoid over reliance on a particular source of revenue, the Village will continue to seek ways to diversify its
revenue structure. In fiscal year 2008, a new source of revenue was added to the Village’s profile, a Prepared Food
and Beverage Tax. Modifications were made to the Hotel/Motel Tax increasing the tax from 3% to 6%. The Village
will continue to transfer .20% of home rule sales tax proceeds to the Motor Fuel Tax Fund to partially offset the
variance in annual street maintenance costs versus the revenue generated by the Motor Fuel Tax. The estimated
Motor Fuel Tax allotment budgeted for next year will only cover about 39% of the estimated expenditures. This source
of revenue will continue to be a challenge as collections are based upon units of gas sold and not as a percentage of
sales. As driving habit and commuting patterns change to offset some of the high oil costs so will the demand for fuel.
- - 13
The Village is suffering from the resale housing market which in the past has generated consistent revenue from the
assessment of a local real estate transfer tax. It is anticipated the FY 2008 will be significantly worse than FY 2007
(December 31, 2007). Building related fees reflect the estimated construction activity anticipated during the year that
include several housing developments. These fees are slowly reflecting the built out nature of our corporate limits.
Any significant changes in the interest rate environment will have a significant impact on investment earnings
particularly as they relate to the pension funds.
The fiscal year ending December 31, 2008 Operating Budget Revenues are projected to be $58.3 million compared to
$44.5 million the previous year. Again please note that the transitional fiscal period was eight months. The projected
Operating Expenditures are $57.3 million ($44.9 million for December 31, 2007). No new programs or services are
contemplated for the budget year. As a service provider, the Village’s largest single cost is personnel related,
representing 49.3% of total Village expenditures. Pension and group health insurance represent a significant portion
of the annual personnel expenditures. The group health insurance costs in 2008 are projected to be $3.1 million.
Major modifications were made to the plan to help contain costs without jeopardizing the efficacy of the coverage.
CONTACTING THE VILLAGE’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of
the Village’s finances and to demonstrate the Village’s accountability for the money it receives. Questions concerning
this report or requests for additional financial information should be directed to Scott Anderson, Director of Finance
and General Services, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089.
Village of Buffalo Grove, Illinois
Statement of Net Assets
December 31, 2007
Governmental Business-Type
Activities Activities Total
Assets
Current
Cash and equivalents 15,119,994 $ 4,586,010 $ 19,706,004 $
Investments 12,633,179 4,939,000 17,572,179
Receivables
Property taxes 11,972,779 - 11,972,779
Accounts - water - 879,062 879,062
Municipal sales tax 2,616,269 - 2,616,269
Illinois income tax 495,364 - 495,364
Motor fuel tax 100,436 - 100,436
Telecommunications tax 722,532 - 722,532
Interest 49,905 19,400 69,305
Other 36,395 - 36,395
Internal balances 296,487 (296,487) -
Inventory 71,271 29,242 100,513
Total current assets 44,114,611 10,156,227 54,270,838
Noncurrent
Prepaid items 1,725,915 588,997 2,314,912
Investment in joint venture - 7,619,623 7,619,623
Net pension asset 203,961 - 203,961
Capital assets (net of
accumulated depreciation)
Land 35,963,844 6,198,514 42,162,358
Construction in progress 25,991 192,373 218,364
Buildings 5,432,033 6,331,381 11,763,414
Land improvements - 147,899 147,899
Equipment and vehicles 3,290,401 5,500 3,295,901
Streets and storm sewers 17,880,215 - 17,880,215
Water and sewer system infrastructure - 29,792,073 29,792,073
Total noncurrent assets 64,522,360 50,876,360 115,398,720
Total assets 108,636,971 $ 61,032,587 $ 169,669,558 $
(Continued)
See Notes to Financial Statements.
- 14 -
Village of Buffalo Grove, Illinois
Statement of Net Assets - Continued
December 31, 2007
Governmental Business-Type
Activities Activities Total
Liabilities
Current
Accounts payable and accrued liabilities 1,766,471 $ 791,085 $ 2,557,556 $
Accumulated unpaid sick leave 128,075 - 128,075
Claims payable 486,816 - 486,816
Deposits payable 1,015,142 64,568 1,079,710
Unearned property taxes 11,496,495 - 11,496,495
Other liabilities - pension funds 2,928,961 - 2,928,961
General obligation bonds payable 1,150,000 - 1,150,000
Total current liabilities 18,971,960 855,653 19,827,613
Noncurrent
Accumulated unpaid sick leave 939,210 - 939,210
General obligation bonds payable 7,740,000 - 7,740,000
Total noncurrent liabilities 8,679,210 - 8,679,210
Total liabilities 27,651,170 855,653 28,506,823
Net Assets
Invested in capital assets, net of related debt 53,702,484 42,667,740 96,370,224
Restricted for
Debt service 98,332 - 98,332
Unrestricted 27,184,985 17,509,194 44,694,179
Total net assets 80,985,801 $ 60,176,934 $ 141,162,735 $
See Notes to Financial Statements.
- 15 -
Village of Buffalo Grove, Illinois
Statement of Activities
Eight Months Ended December 31, 2007
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government 4,019,032 $ 1,139,242 $ -$ -$
Public safety 15,324,061 1,050,920 88,855 -
Public works 8,232,685 - 861,528 -
Interest and fiscal charges 216,379 - - -
Total governmental activities 27,792,157 2,190,162 950,383 -
Business-type activities
Waterworks and sewerage 5,165,701 4,799,193 - 497,875
Refuse service 777,716 704,841 - -
Golf courses 2,637,072 2,141,860 - -
Total business-type activities 8,580,489 7,645,894 - 497,875
Total 36,372,646 $ 9,836,056 $ 950,383 $ 497,875 $
General revenues
Taxes
Property
Sales and use
Income
Telecommunications
Property transfer
Other
Investment income
Miscellaneous
Transfers in (out)
Total general revenues, special items
and transfers
Change in net assets
Net assets - beginning
Net assets - ending
See Notes to Financial Statements.
Program Revenues
- 16 -
Governmental Business-Type
Activities Activities Total
(2,879,790) $ -$ (2,879,790) $
(14,184,286) - (14,184,286)
(7,371,157) - (7,371,157)
(216,379) - (216,379)
(24,651,612) - (24,651,612)
- 131,367 131,367
- (72,875) (72,875)
- (495,212) (495,212)
- (436,720) (436,720)
(24,651,612) (436,720) (25,088,332)
706,749 - 706,749
5,741,981 - 5,741,981
2,725,204 - 2,725,204
1,967,348 - 1,967,348
600,379 - 600,379
247,827 - 247,827
958,715 292,375 1,251,090
1,254,948 - 1,254,948
899,950 (899,950) -
15,103,101 (607,575) 14,495,526
(9,548,511) (1,044,295) (10,592,806)
90,534,312 61,221,229 151,755,541
80,985,801 $ 60,176,934 $ 141,162,735 $
Net (Expense), Revenue and Changes in Net Assets
- 17 -
Village of Buffalo Grove, Illinois
Balance Sheet - Governmental Funds
December 31, 2007
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Assets
Cash and equivalents 12,319,291 $ 1,614,980 $ 13,934,271 $
Investments 10,717,179 1,916,000 12,633,179
Receivables
Property taxes 9,919,761 2,053,018 11,972,779
Municipal sales tax 2,616,269 - 2,616,269
Illinois income tax 495,364 - 495,364
Motor fuel tax - 100,436 100,436
Telecommunications tax 722,532 - 722,532
Interest 38,258 11,647 49,905
Other 36,395 - 36,395
Due from other funds 412,821 31,707 444,528
Inventory 71,271 - 71,271
Prepaid items 1,725,915 - 1,725,915
Total assets 39,075,056 $ 5,727,788 $ 44,802,844 $
Liabilities
Accounts payable and accrued liabilities 1,422,282 $ 231,835 $ 1,654,117 $
Deposits payable 1,015,142 - 1,015,142
Due to other funds 96,211 116,334 212,545
Deferred property taxes 9,528,736 1,967,759 11,496,495
Total liabilities 12,062,371 2,315,928 14,378,299
Fund Balances
Reserved for inventory 71,271 - 71,271
Reserved for prepaid items 1,725,915 - 1,725,915
Reserved for debt service - 98,332 98,332
Unreserved - designated
General fund 10,343,396 - 10,343,396
Special revenue funds - 150,000 150,000
Unreserved - undesignated
General fund 14,872,103 - 14,872,103
Special revenue funds - 998,979 998,979
Capital projects funds - 2,164,549 2,164,549
Total fund balances 27,012,685 3,411,860 30,424,545
Total liabilities and fund balances 39,075,056 $ 5,727,788 $ 44,802,844 $
See Notes to Financial Statements.- 18 -
Village of Buffalo Grove, Illinois
December 31, 2007
Total fund balances-governmental funds 30,424,545 $
Amounts reported for governmental activities in the
Statement of Net Assets are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. 62,592,484
The net pension asset resulting from contributions in excess of the annual
required contribution are not financial resources and, therefore, are not reported
in the funds.203,961
An internal service fund is used to charge the cost of health insurance to the
Village's various departments. The assets and liabilities of the internal service
fund are included in the governmental activities in the Statement of
Net Assets. Internal service fund net assets are: 651,057
Some liabilities reported in the Statement of Net Assets do not
require the use of current financial resources and, therefore, are
not reported as liabilities in governmental funds. These
liabilities consist of:
Other liabilities to pension funds (2,928,961)
General obligation bonds payable (8,890,000)
Accumulated unpaid sick leave (1,067,285)
Net assets of governmental activities 80,985,801 $
See Notes to Financial Statements.
Reconciliation of the Balance Sheet - Governmental Funds
to the Statement of Net Assets
- 19 -
Village of Buffalo Grove, Illinois
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds
Eight Months Ended December 31, 2007
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Revenues
Charges for services 930,786 $ 98,024 $ 1,028,810 $
Licenses and permits 245,148 - 245,148
Intergovernmental - 815,669 815,669
Fines and fees 1,050,918 - 1,050,918
Property taxes 4,674,053 1,123,793 5,797,846
Other taxes 11,282,739 - 11,282,739
Investment income 800,917 110,527 911,444
Miscellaneous 1,227,304 27,644 1,254,948
Total revenues 20,211,865 2,175,657 22,387,522
Expenditures
Current
General government 2,966,010 489,203 3,455,213
Public safety 13,917,502 293,878 14,211,380
Public works 4,358,578 2,866,809 7,225,387
Capital projects - 502,701 502,701
Debt service
Principal - 1,312,381 1,312,381
Interest and fiscal charges - 424,220 424,220
Total expenditures 21,242,090 5,889,192 27,131,282
Deficiency of revenues over expenditures (1,030,225) (3,713,535) (4,743,760)
Other financing sources (uses)
Transfers in 654,790 2,409,376 3,064,166
Transfers out (2,014,216) (150,000) (2,164,216)
Total other financing sources (uses) (1,359,426) 2,259,376 899,950
Net change in fund balances (2,389,651) (1,454,159) (3,843,810)
Fund balances - beginning 29,402,336 4,866,019 34,268,355
Fund balances - ending 27,012,685 $ 3,411,860 $ 30,424,545 $
See Notes to Financial Statements.
- 20 -
Village of Buffalo Grove, Illinois
Eight Months Ended December 31, 2007
Net change in fund balances-total governmental funds (3,843,810) $
Amounts reported for governmental activities in the Statement of
Activities are different because:
Governmental funds report capital outlays as expenditures while
govermental activities report depreciation expense to allocate
those expenditures over the lives of the assets. This is the amount
by which depreciation exceeded capital outlay in the current
period. ($744,025 current additions less $1,995,101 depreciation) (1,251,076)
Revenues in the Statement of Activities for the prior year that did not provide
current financial resources were deferred in the funds, and reported as revenue
in the governmental funds during the current year. (5,091,097)
Repayment of principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the
Statement of Net Assets. 1,312,381
An internal service fund is used to charge the cost of health insurance
to Village departments. The net revenue (expenses) of the internal
service fund is reported within govermental activities. (19,087)
Some expenses reported in the Statement of Activities do not
require the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds. These
activities consist of:
Loss on sale of capital assets (85,750)
Decrease in accrued interest 207,841
Decrease in pension asset (170,230)
Increase in accumulated unpaid sick leave (282,020)
Increase in other liabilities to pension funds (325,663)
Change in net assets of governmental activities (9,548,511) $
See Notes to Financial Statements.
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
- 21 -
Village of Buffalo Grove, Illinois
Statement of Net Assets - Proprietary Funds
December 31, 2007
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Assets
Current
Cash and equivalents 4,420,962 $ -$ 165,048 $ 4,586,010 $ 1,185,723 $
Investments 4,939,000 - - 4,939,000 -
Receivables
Accounts - water 879,062 - - 879,062 -
Interest 19,400 - - 19,400 -
Inventory - 8,465 20,777 29,242 -
Total current assets 10,258,424 8,465 185,825 10,452,714 1,185,723
Noncurrent
Prepaid items 588,997 - - 588,997 -
Investment in joint venture 7,619,623 - - 7,619,623 -
Capital assets (net of
accumulated depreciation)
Land - 5,219,738 978,776 6,198,514 -
Construction in progress 192,373 - - 192,373 -
Buildings - 5,859,613 471,768 6,331,381 -
Land improvements - 103,287 44,612 147,899 -
Equipment - - 5,500 5,500 -
Water and sewer system
infrastructure 29,792,073 - - 29,792,073 -
Total noncurrent assets 38,193,066 11,182,638 1,500,656 50,876,360 -
Total assets 48,451,490 $ 11,191,103 $ 1,686,481 $ 61,329,074 $ 1,185,723 $
(Continued)
See Notes to Financial Statements.
Business-Type Activities - Proprietary Funds
- 22 -
Village of Buffalo Grove, Illinois
Statement of Net Assets - Proprietary Funds - Continued
December 31, 2007
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Liabilities
Current
Accounts payable and
accrued liabilities 685,111 $ 44,131 $ 61,843 $ 791,085 $ 47,850 $
Claims payable - - - - 486,816
Deposits payable 64,568 - - 64,568 -
Due to other funds - 221,911 74,576 296,487 -
Total liabilities 749,679 266,042 136,419 1,152,140 534,666
Net Assets
Invested in capital assets, net of
related debt 29,984,446 11,182,638 1,500,656 42,667,740 -
Unrestricted 17,717,365 (257,577) 49,406 17,509,194 651,057
Total net assets 47,701,811 $ 10,925,061 $ 1,550,062 $ 60,176,934 $ 651,057 $
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 23 -
Village of Buffalo Grove, Illinois
Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds
Eight Months Ended December 31, 2007
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Operating revenues
Water and sewerage charges 4,664,149 $ -$ -$ 4,664,149 $ -$
Daily greens fees and memberships - 709,675 785,981 1,495,656 -
Merchandise sales - 58,425 83,605 142,030 -
Connection and recapture fees 135,044 - - 135,044 -
Cart, club and other rentals - 249,828 142,467 392,295 -
Driving range fees - - 59,382 59,382 -
SWANCC user fees - - 704,841 704,841 -
Health premiums - - - - 2,437,959
Miscellaneous - 46,991 5,506 52,497 -
Total operating revenues 4,799,193 1,064,919 1,781,782 7,645,894 2,437,959
Operating expenses
Water operations 869,794 - - 869,794 -
Sewer operations 2,227,712 - - 2,227,712 -
Water purchases 1,254,874 - - 1,254,874 -
Golf operations - 1,020,169 958,360 1,978,529 -
Cost of sales - pro shop - 45,163 55,372 100,535 -
Refuse operations - - 777,716 777,716 -
Health services - - - - 2,504,317
Depreciation 799,179 295,541 123,780 1,218,500 -
Total operating expenses 5,151,559 1,360,873 1,915,228 8,427,660 2,504,317
Operating (loss) (352,366) (295,954) (133,446) (781,766) (66,358)
Nonoperating revenues (expenses)
Investment income 289,093 683 2,599 292,375 47,271
Interest expense (14,142) (7,857) - (21,999) -
Other - (130,830) - (130,830) -
Total nonoperating revenues (expenses) 274,951 (138,004) 2,599 139,546 47,271
(Loss) before transfers
and capital contributions (77,415) (433,958) (130,847) (642,220) (19,087)
Capital contributions 497,875 - - 497,875 -
Transfers out (834,790) - (65,160) (899,950) -
(336,915) - (65,160) (402,075) -
Change in net assets (414,330) (433,958) (196,007) (1,044,295) (19,087)
Net assets - beginning 48,116,141 11,359,019 1,746,069 61,221,229 670,144
Net assets - ending 47,701,811 $ 10,925,061 $ 1,550,062 $ 60,176,934 $ 651,057 $
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 24 -
Village of Buffalo Grove, Illinois
Statement of Cash Flows – Proprietary Funds
Eight Months Ended December 31, 2007
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Cash flows from operating activities
Cash received from residents for
water/sewer services 4,757,997 $ -$ -$ 4,757,997 $ -$
Cash received from residents for connections 135,044 - - 135,044 -
Cash received for golf activities - 935,723 1,001,561 1,937,284 -
Cash received for refuse services - - 704,841 704,841 -
Cash received from other funds for services - - - - 2,437,959
Payments to employees (825,126) (574,516) (587,049) (1,986,691) -
Payments to suppliers (3,230,375) (353,193) (1,207,564) (4,791,132) (2,504,650)
Net cash flows from operating activities 837,540 8,014 (88,211) 757,343 (66,691)
Cash flows from noncapital financing activities
Property taxes - 85,720 - 85,720 -
Transfers out (834,790) - (65,160) (899,950) -
Net cash flows from noncapital financing activities (834,790) 85,720 (65,160) (814,230) -
Cash flows from capital and related
financing activities
Capital assets purchased (192,373) - - (192,373) -
Principal paid on contract payable (353,696) - - (353,696) -
Interest paid on contract payable (14,142) - - (14,142) -
Principal paid on general obligation bonds - (174,768) - (174,768) -
Interest paid on general obligation bonds - (7,857) - (7,857) -
Net cash flows from capital and related
financing activities (560,211) (182,625) - (742,836) -
Cash flows from investing activities
Interest received 315,716 683 2,599 318,998 47,271
Purchase of investments (643,929) - - (643,929) -
Sale of investments 895,498 - - 895,498 -
Net cash flows from investing activities 567,285 683 2,599 570,567 47,271
Net increase (decrease) in cash and
equivalents 9,824 (88,208) (150,772) (229,156) (19,420)
Cash and equivalents - beginning 4,411,138 88,208 315,820 4,815,166 1,205,143
Cash and equivalents - ending 4,420,962 $ -$ 165,048 $ 4,586,010 $ 1,185,723 $
See Notes to Financial Statements.(Continued)
Business-Type Activities - Enterprise Funds
- 25 -
Village of Buffalo Grove, Illinois
Statement of Cash Flows – Proprietary Funds - Continued
Eight Months Ended December 31, 2007
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Reconciliation of operating loss to
net cash flows from operating activities
Operating loss (352,366) $ (295,954) $ (133,446) $ (781,766) $ (66,358) $
Adjustments to reconcile operating loss
to net cash flows from operating activities
Depreciation 799,179 295,541 123,780 1,218,500 -
Changes in assets and liabilities
Receivables 93,848 - - 93,848 -
Inventory - 3,479 1,095 4,574 -
Accounts payable and accrued liabilities 296,841 12,372 27,068 336,281 (333)
Deposits payable 38 - - 38 -
Due to other funds - 121,773 (31,327) 90,446 -
Deferred revenue - (129,197) (75,381) (204,578) -
Total adjustments 1,189,906 303,968 45,235 1,539,109 (333)
Net cash flows from operating activities 837,540 $ 8,014 $ (88,211) $ 757,343 $ (66,691) $
Summary of noncash capital and related
financing activities
Capital assets contributed by developers 497,875 $ -$ -$ 497,875 $ -$
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 26 -
Village of Buffalo Grove, Illinois
Statement of Fiduciary Net Assets
Eight Months Ended December 31, 2007
Pension Trust Agency
Funds Fund
Assets
Cash and equivalents 16,418,937 $ 423,141 $
Investments
Certificates of deposit 2,518,000 -
U.S. government and agency obligations 23,321,731 -
Open-end mutual funds 15,733,256 -
Receivables
Pension contributions 2,928,961 -
Interest 69,394 -
Due from other funds 64,504 -
Total assets 61,054,783 423,141
Liabilities
Accounts payable 1,710 -
Due to other governments - 423,141
Total liabilities 1,710 423,141
Net Assets
Restricted for pension benefits 61,053,073 $ -$
See Notes to Financial Statements.
- 27 -
Village of Buffalo Grove, Illinois
Statement of Changes in Fiduciary Net Assets - Pension Trust Funds
Eight Months Ended December 31, 2007
Additions
Contributions
Employer 2,913,796 $
Participants 731,782
3,645,578
Investment income
Net appreciation in fair value of investments 737,570
Interest income 1,240,754
Less investment expense (50,174)
1,928,150
Total additions 5,573,728
Deductions
Administration 37,083
Pension benefits and refunds 1,132,872
Total deductions 1,169,955
Change in net assets 4,403,773
Net assets - beginning 56,649,300
Net assets - ending 61,053,073 $
See Notes to Financial Statements.
- 28 -
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 29
Note 1. Summary of Significant Accounting Policies
The Village of Buffalo Grove, Illinois (Village) was incorporated March 7, 1958. The Village operates under a Council-
Manager form of government and provides the following services as authorized by its articles of incorporation: public
safety, waterworks, sewerage, building and zoning, engineering, recreation, civil defense and overall administration.
Reporting Entity
The Village is a municipal corporation governed by an elected board. As required by accounting principles generally
accepted in the United States of America, these financial statements present the Village (the primary government)
and its component units. In evaluating how to define the reporting entity, management has considered all potential
component units. The decision to include a potential component unit in the reporting entity was made based upon the
significance of their operational or financial relationships with the primary government. Financial accountability is
defined as:
(1) Appointment of a voting majority of the component unit’s board, and either (a) the ability to impose will by the
primary government or (b) the possibility that the component unit will provide a financial benefit to, or impose
a financial burden on, the primary government; or
(2) Fiscal dependency on the primary government.
The accompanying financial statements present the Village of Buffalo Grove. The Village has determined that no
other entity meets the above criteria and, therefore, no other entity has been included as a component unit in the
Village’s financial statements.
Government-wide and Fund Financial Statements
Government-wide Financial Statements: The government-wide Statement of Net Assets and Statement of
Activities report the overall financial activity of the Village. Eliminations generally have been made to minimize the
double-counting of internal activities of the Village; however, interfund services provided and used are not eliminated
in the process of consolidation. The financial activities of the Village consist of governmental activities, which are
primarily supported by taxes and intergovernmental revenues, and business-type activities, which rely to a significant
extent on fees and charges for services.
The Statement of Net Assets presents the Village’s non-fiduciary assets and liabilities with the difference reported in
three categories:
Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and
reduced by outstanding balances for bonds and other debt that are attributable to the acquisition, construction, or
improvement of those assets.
Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors,
grantors, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation.
Unrestricted net assets consist of net assets that do not meet the criteria of the two preceding categories.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 30
Note 1. Summary of Significant Accounting Policies (Continued)
The Statement of Activities demonstrates the degree to which the direct expenses of a given function (i.e. general
government, public safety, etc.) are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function. Program revenues include (a) charges paid by the recipients of goods or services
offered by the programs (including fines and fees), and (b) grants and contributions that are restricted to meeting the
operational requirements of a particular program. Revenues that are not classified as program revenues, including all
taxes, are presented as general revenues.
Fiduciary funds are excluded from the government-wide financial statements.
Fund Financial Statements: Separate financial statements are provided for governmental funds, proprietary funds
and fiduciary (agency) funds, even though the latter are excluded from the government-wide financial statements.
The fund financial statements provide information about the Village’s funds. The emphasis of fund financial
statements is on major governmental funds, each displayed in a separate column. The Village has the following
major governmental fund - General Fund. All remaining governmental funds are aggregated and reported as
nonmajor governmental funds. The Village has the following major proprietary funds – Waterworks and Sewerage
Fund and Arboretum Golf Course Fund. All remaining proprietary funds are aggregated and reported as nonmajor
proprietary funds.
The Village administers the following major governmental funds:
General Fund – This is the Village’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund. The services which are administered by the
Village and accounted for in the general fund include general government, public safety and public works.
The Village administers the following major proprietary funds:
Waterworks and Sewerage Fund – This fund accounts for the provision of water and sewer services to the
residents of the Village. All activities necessary to provide such services are accounted for in this fund, including but
not limited to, administration, operations, maintenance, financing and related debt service and billing and collection.
Arboretum Golf Course Fund – This fund accounts for the operation of the Arboretum golf course. All activities
necessary to provide the service are accounted for in this fund including, but not limited to, administration, operations,
maintenance and related debt service.
Additionally, the Village administers fiduciary funds (pension trust and agency) for assets held by the Village in a
fiduciary capacity. Included are the Village’s Police Pension Fund and Firefighters’ Pension Fund which accumulate
resources for the retirement annuity payments to sworn officers and firefighters. The Village’s agency fund, the
School and Parks Donation Fund accounts for monies deposited by developers for local schools and park districts.
The Village also administers one internal service fund, the Health Insurance Reserve Fund, to account for the
activities of its self-insured health benefits program.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 31
Note 1. Summary of Significant Accounting Policies (Continued)
Measurement Focus and Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flow takes place.
Nonexchange transactions, in which the Village gives (or receives) value without directly receiving (or giving) equal
value in exchange, include various taxes, State shared revenues and various State, Federal and local grants. On an
accrual basis, revenues from taxes are recognized when the Village has a legal claim to the resources. Grants,
entitlements, State shared revenues and similar items are recognized in the fiscal year in which all eligibility
requirements imposed by the provider have been met.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual
basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected
within 90 days of the end of the current fiscal year (60 days for property taxes).
Significant revenue sources which are susceptible to accrual include property taxes, other taxes, grants, charges for
services, and interest. All other revenue sources are considered to be measurable and available only when cash is
received.
Expenditures generally are recorded when the liability is incurred, as under accrual accounting. However,
compensated absences are recorded only when payment is due (upon employee retirement or termination). General
capital asset acquisitions are reported as expenditures in governmental funds.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are
followed in both the government-wide and proprietary fund financial statements to the extent that those standards do
not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services in connection with the proprietary fund’s principal ongoing
operations.
When both restricted and unrestricted resources are available for use, it is the Village’s policy to use the restricted
resources first, then unrestricted resources as they are needed.
Cash and Investments
Under Illinois law, the Village is restricted to investing funds in specific types of investment instruments. The following
generally represents the types of instruments allowable by State law, as adopted within the Village’s investment
policy:
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 32
Note 1. Summary of Significant Accounting Policies (Continued)
Cash and Investments (Continued)
The investments which the Village may purchase are limited by Illinois law to the following: (1) securities which are
guaranteed by the full faith and credit of the U.S. Government as to principal and interest; (2) bonds, notes,
debentures or other similar obligations of the United States of America or its agencies; (3) certificates of deposit or
time deposits of any bank, as defined by the Illinois Banking Act, or savings and loan association incorporated under
the laws of Illinois which are insured by a Federal corporation; (4) short-term discount obligations of the Federal
National Mortgage Association; (5) certain short-term obligations of corporations (commercial paper) organized in the
United States with assets exceeding $500 million that are rated at the time of purchase in the three highest
classifications by at least two of the major rating services and which mature not later than 180 days from purchase,
and such purchases do not exceed 10% of the corporation’s outstanding obligations; (6) the State Treasurer’s Illinois
Funds; (7) the Illinois Metropolitan Investment Fund; and (8) money market mutual funds which invest only in
securities authorized above.
In addition, Pension Trust Funds are also permitted to invest in the following instruments: (1) general accounts of
Illinois-licensed life insurance companies; (2) separate accounts of Illinois-licensed companies invested in stocks,
bonds, and real estate, limited to 10.00% of the funds’ investments; (3) certain equities (subject to limitations).
Although permitted under State law, the Village’s policy does not allow investments in repurchase, or reverse
repurchase agreements or in chartered credit unions.
Cash Equivalents
For purposes of the statement of cash flows, the Village considers all highly liquid investments (including restricted
assets) with maturity of three months or less when purchased to be cash equivalents.
Investments
Investments are stated at fair value.
Inventories and Prepaid Items
Inventories, consisting of golf pro shop merchandise and central garage parts and materials, are stated at lower of
cost (first-in, first-out) or market (net realizable value). The costs of governmental fund-type inventories are recorded
as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
items/expenses.
Interfund Receivables/Payables
The Village has the following types of transactions between funds:
Loans and Advances—amounts provided with a requirement for repayment. In the fund financial statements,
interfund loans are reported as due from other funds in lender funds and due to other funds in borrower funds. Any
residual balances outstanding between the governmental activities and business-type activities are reported as
internal balances in the government-wide statement of net assets.
Services provided and used—sales and purchases of goods and services between funds for a price approximating
their external exchange value. Interfund services provided and used are reported as revenues in seller funds and
expenditures or expenses in purchaser funds. Unpaid amounts are reported as due to/from other funds in the fund
balance sheets or fund statements of net assets.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 33
Note 1. Summary of Significant Accounting Policies (Continued)
Reimbursements—repayments from the funds responsible for particular expenditures or expenses to the funds that
initially paid for them. Reimbursements are reported as expenditures in the reimbursing fund and as a reduction of
expenditures in the reimbursed fund.
Transfers—flows of assets (such as cash or goods) without equivalent flows of assets in return and without a
requirement for repayment. In governmental funds, transfers are reported as other financing uses in the funds
making transfers and as other financing sources in the funds receiving transfers. In proprietary funds, transfers in/out
are reported as a separate category after nonoperating revenues and expenses.
Capital Assets
Capital assets which include land, streets, buildings, storm sewers, sanitary sewers, water mains, vehicles and
equipment are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements. Capital assets are defined as assets with an initial, individual cost of more than $10,000, and an
estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life of an
asset, or that significantly increase the capacity of an asset are capitalized. Expenditures for asset acquisitions and
improvements are stated as capital outlay expenditures in the governmental funds.
Interest incurred during the construction phase of capital assets is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets’
lives are not capitalized.
Depreciation of capital assets is recorded in the Statement of Activities with accumulated depreciation reflected in the
Statement of Net Assets and is provided on the straight-line basis over the following estimated useful lives:
Gains or losses from sales or retirements of capital assets are included in the operations on the Statement of
Activities.
Sick Leave, Vacation Pay and Postretirement Benefits
Vacation pay does not vest; employees must take vacation by December 31 of the year in which it is earned.
Terminees are reimbursed for any accumulated and earned vacation pay. The amounts of such accumulated vacation
benefits are not material. In the event of termination, any vested amounts due to Village employees for accumulated
unused sick leave will be paid to ICMA Retirement Corporation based on the formula set forth in the Village's
personnel rules. Except for those amounts for known retirements in the upcoming year, accrued amounts are
generally considered to be noncurrent. Amounts are reported as liabilities in the Government - Wide Statement of
Net Assets. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
Years
Buildings 20
Well and system improvements 5 - 50
Furniture and equipment 2 - 10
Vehicles 2 - 12
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 34
Note 1. Summary of Significant Accounting Policies (Continued)
Budget
The budget data included in the financial statements represent the Village's program budget and the appropriations
represent the Village's legal expenditure limit. Budgets are legally adopted for General, Special Revenue (except the
Retiree Health Savings Fund), Debt Service, Capital Projects, Proprietary, and Pension Trust Funds. The Internal
Service Fund did not adopt a budget. All Governmental Fund type budgets and Pension Trust Fund type budgets are
adopted on a basis consistent with GAAP. Proprietary Funds are adopted on a basis other than GAAP in that
depreciation expense, income from the joint venture and contributions from developers are not budgeted, and
principal payments on long-term debt are budgeted.
The Village Board of Trustees follows these procedures in establishing the budgetary and appropriations data
reflected in the financial statements:
(1) The Village Manager submits to the Board a proposed program budget for the fiscal year commencing May 1.
The program budget includes proposed expenditures and the means of financing them.
(2) Appropriation ordinance hearings are conducted by the Village to obtain taxpayer comments, and the
ordinance is subsequently adopted by the Board.
(3) The program budget is legally enacted through a resolution adopted by the Board.
(4) Any expenditures that exceed the total appropriations at the fund level must be approved by the Board of
Trustees.
The Village Manager is authorized to transfer budgeted amounts between departments within any fund. However,
any modifications to the legally adopted program budget/appropriation ordinance may not exceed expenditure limits,
at the fund level, mandated by the appropriation ordinance without approval by the Board. No modifications were
made to the budget/appropriation ordinance during the year.
None of the funds exceeded the legally adopted appropriation ordinance.
Appropriations, which are not expended by year-end, lapse and must be reappropriated in the following year for the
expenditure to be made. The Village does not employ the encumbrance method of accounting to reserve fund
balance for subsequent year expenditures.
The original and final budgets presented in this report cover the eight month period commencing May 1, 2007 and
ending December 31, 2007 to reflect the change in the Village’s fiscal year. Beginning with fiscal year 2008, the
budget will be adopted for a full calendar year,
Deferred and Unearned Revenue
The Village defers revenue recognition in connection with resources that have been received, but not yet earned.
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to
be available to liquidate liabilities of the current period.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 35
Note 1. Summary of Significant Accounting Policies (Continued)
Long-term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-
term obligations are reported as liabilities in the applicable governmental or business-type activities and proprietary
fund statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
over the life of the bonds using the effective interest method. Bond issuance costs are reported as deferred charges
and amortized over the term of the related debt.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
Debt service funds are specifically established to account for and service the long-term obligations for the
governmental funds debt. Proprietary funds individually account for and service the applicable debt that benefits
those funds. Long-term debt is recognized as a liability in a governmental fund when due, or when resources have
been accumulated for payment early in the following year. For other long-term obligations, only that portion expected
to be financed with available financial resources is reported as a fund liability of a governmental fund.
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally segregated for a specific purpose.
Designated fund balances represent tentative plans for future use of financial resources. As of December 31, the
Village reported the following designated amounts:
General Fund – The Village has designated $10,343,396 for capital equipment replacement.
Retiree Health Savings Fund (Nonmajor Special Revenue) – The Village has designated $150,000 for employee
benefits.
The Motor Fuel Tax and Facilities Development Funds had deficit balances of $65,105 and $17,757, respectively, as
of December 31, 2007. The Village plans to eliminate these deficits with transfers from the General Fund.
Accounting Estimates
The preparation of the financial statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the
financial statements, and the reported amount of revenues and expenditures/expenses during the period. Actual
results could differ from these estimates.
Elimination and Reclassification
In the process of aggregating data for the government-wide Statement of Activities, some amounts reported as
interfund activity and interfund balances in the funds are eliminated or reclassified.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 36
Note 1. Summary of Significant Accounting Policies (Continued)
Fiscal Year
Effective May 1, 2007, the Village has adopted a calendar year for budget and financial reporting purposes. The
change was made to create efficiencies in auditing by syncing the fiscal years of the Village and its two golf courses
and create efficiencies in budgeting by (1) having the budget year run consecutive with the payroll year and (2)
budget for construction projects that start and finish in the same fiscal year (i.e. motor fuel tax programs). As a result,
this report includes only the eight month period beginning May 1, 2007 and ending December 31, 2007.
Note 2. Deposits and Investments
Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of a bank failure, the Village’s
deposits may not be returned to it. The Village’s policy requires collateralization of all deposits in excess of FDIC
insured limits.
Investments
The following schedule reports the fair values and maturities (using the segmented time distribution method) for the
Village’s investments in debt securities at December 31, 2007:
*Represents the weighted average maturity of the respective fund.
The Illinois Metropolitan Investment Fund (IMET) and The Illinois Funds Investment Pool (IFIP) are not registered with
the SEC. Oversight for IMET is provided by the IMET Board. The Board is responsible for policy formulation, as well
as policy and administration oversight. Oversight for IFIP is provided by the Auditor General’s Office of the State of
Illinois. For both pools, the fair value of the positions in the pool is the same as the value of the pool shares.
Interest Rate Risk
The Village’s investment policy protects against fair value losses resulting from rising interest rates by diversifying its
investment portfolio to prevent over-concentration of assets in a specific maturity, a specific issuer, or a specific class
of securities. The Village does not have a formal policy that limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates.
Fair Less Than Greater Than
Investment Type Value 1 Year 1-5 Years 6-10 Years 10 Years
U.S. Treasuries - Zero Coupon 17,342,493 $ 981,520 $ 9,298,286 $ 4,288,787 $ 2,773,900 $
GNMA's 2,778 - - 2,778 -
U.S. Agencies 7,032,771 - 1,256,886 4,427,105 1,348,780
Illinois Funds* 22,702,659 22,702,659 - - -
Illinois Metropolitan Investment Fund* 9,520,031 - 9,520,031 - -
Money Market Funds* 3,411,487 3,411,487 - - -
Total Investments 60,012,219 $ 27,095,666 $ 20,075,203 $ 8,718,670 $ 4,122,680 $
Investment Maturities (in Years)
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 37
Note 2. Deposits and Investments (Continued)
Credit Risk
The Village’s investment policy applies the “prudent person” standard in managing its investment portfolio. As such,
all investments are made with such judgment and care, under circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable income to be derived. The
Village’s investment policy also limits investments in commercial paper to the highest rating classifications, as
established by at least two of the four major rating services, and which mature not later than 180 days from the
purchase date. Such purchases may not exceed 10% of the issuer corporation’s outstanding obligations.
Credit ratings for the Village’s investments in debt securities as described by Standard & Poor’s and Moody’s,
respectively, at December 31, 2007 (excluding investments in U.S. Treasuries and GNMA’s which are not considered
to have credit Risk) are as follows:
NR = Not Rated
Concentration of Credit Risk
The Village limits the amount that can be invested in commercial paper to one-third of the Village’s total investments.
Custodial Credit Risk
The Village’s investment policy requires all investments and investment collateral to be held in safekeeping by a third
party custodial institution as designated by the Treasurer, in the Village’s name. Custodial credit risk is the risk that,
in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or
collateral securities which are in the possession of the outside party. As of December 31, 2007, the Village’s
investments were not exposed to custodial credit risk.
Note 3. Receivables – Property Taxes
The Village is a home-rule community under the 1970 Illinois Constitution and, accordingly, does not have a statutory
rate limit.
The Village's property tax is levied each calendar year on all taxable property located in the Village. For
governmental funds only, property taxes collected within the fiscal year, or within 60 days after fiscal year-end, are
recognized as revenue. Amounts not received within 60 days after year-end are reflected as deferred revenue.
Property taxes on the proprietary funds are recorded on the accrual basis.
% of
Investment
Investment Type RatingsType
U.S. Agencies AAA/Aaa 100%
Illinois Funds AAA/NR 100%
Illinois Metropolitan Investment Fund AAA/NR 100%
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 38
Note 3. Receivables – Property Taxes (Continued)
The County Assessors of Cook and Lake Counties are responsible for assessment of the taxable real property of the
Village lying within their respective Counties. One quarter of Lake County is reassessed each year on a repeating
quadrennial schedule established by the Assessor. One-third of Cook County is reassessed each year on a
repeating triennial schedule established by the Assessor.
The County Clerks compute the annual tax for each parcel of real property and prepare tax books used by the County
Collectors as the basis for issuing tax bills to all taxpayers in each County.
Property taxes are collected by the County Collectors and are submitted to the County Treasurers, who remit to the
units their respective shares of the collections. Taxes levied in one year become due and payable in two installments
on March 1 and August 1 during the following year in Cook County and on July 1 and September 1 in Lake County.
The first installment is an estimated bill and is one-half of the prior year's tax bill while the second installment is based
on the current levy, assessment and equalization, and any changes from the prior year less what was paid as part of
the first installment. Taxes must be levied by the third Tuesday in December for the current levy year. The levy
becomes an enforceable lien against the property as of January 1 of the levy year.
The 2007 property tax levy is recorded as a receivable and deferred (unearned) revenue as it is intended to finance
fiscal year 2008. Based upon collection histories, the Village has not provided an allowance for uncollectible real
property taxes. All uncollected taxes relating to prior years' levies have been written off.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 39
Note 4. Capital Assets
Governmental Activities
A summary of changes in capital assets for governmental activities of the Village is as follows:
Balance Balance
May 1 Additions Deletions Dec. 31
Government activities:
Capital assets not being depreciated:
Land 36,049,594 $ -$ 85,750 $ 35,963,844 $
Construction in progress - 25,991 - 25,991
Total capital assets not being depreciated 36,049,594 25,991 85,750 35,989,835
Capital assets being depreciated:
Buildings 20,592,345 106,365 - 20,698,710
Equipment and vehicles 9,625,107 611,669 193,241 10,043,535
Streets 19,040,719 - - 19,040,719
Storm sewers 37,665,289 - - 37,665,289
86,923,460 718,034 193,241 87,448,253
Less accumulated depreciation for:
Buildings 14,633,417 633,260 - 15,266,677
Equipment and vehicles 6,526,685 419,690 193,241 6,753,134
Streets 9,256,545 253,459 - 9,510,004
Storm sewers 28,627,097 688,692 - 29,315,789
59,043,744 1,995,101 193,241 60,845,604
Total capital assets being depreciated, net 27,879,716 (1,277,067) - 26,602,649
Governmental activities capital assets, net 63,929,310 $ (1,251,076) $ 85,750 $ 62,592,484 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 40
Note 4. Capital Assets (Continued)
Business-Type Activities
A summary of changes in capital assets for business-type activities of the Village is as follows:
Transfers
Balance and Reclass- Balance
May 1 Additions ifications Deletions April 30
Business-type activities:
Capital assets not being depreciated:
Land 6,198,514 $ -$ -$ -$ 6,198,514 $
Construction-in-progress - 192,373 - - 192,373
Total capital assets not
being depreciated 6,198,514 192,373 192,373 - 6,390,887
Capital assets being depreciated:
Buildings 10,284,359 - - - 10,284,359
Land improvements 1,921,716 - 44,772 - 1,966,488
Equipment 137,239 - (42,729) - 94,510
Water/sewer system infrastructure 54,995,530 497,875 - - 55,493,405
67,338,844 497,875 2,043 - 67,838,762
Less accumulated depreciation for:
Buildings 3,485,151 360,640 107,187 - 3,952,978
Land improvements 1,827,823 53,181 (62,415) - 1,818,589
Equipment 126,239 5,500 (42,729) - 89,010
Water/sewer system infrastructure 24,902,153 799,179 - - 25,701,332
30,341,366 1,218,500 2,043 - 31,561,909
Total capital assets being
depreciated, net 36,997,478 (720,625) - - 36,276,853
Business-type activities
capital assets, net 43,195,992 $ (528,252) $ 192,373 $ -$ 42,667,740 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 41
Note 4. Capital Assets (Continued)
Depreciation Charged to Functions / Activities
Depreciation was charged to functions/activities as follows:
Governmental Business-Type
Activities Activities
General government 271,761 $ -$
Public safety 547,116 -
Public works 1,176,224 -
Waterworks and sewerage - 799,179
Golf courses - 419,321
1,995,101 $ 1,218,500 $
Note 5. Long-Term Obligations
General Obligation Bonds
The Village issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. General obligation bonds have been issued for both general government and proprietary activities. These
bonds, therefore, are reported in the proprietary funds if they are expected to be repaid from proprietary revenues. In
addition, general obligation bonds have been issued to refund both general obligation bonds and revenue bonds.
Contract Payable – NWWC
The Village entered into a long-term contract with the Northwest Water Commission (NWWC), a proprietary joint
venture reported in the waterworks and sewerage fund. Under the terms of the contract, NWWC has constructed a
booster station to benefit Buffalo Grove. The Village will reimburse the NWWC for the financing of the construction
costs. As of December 31, 2007, this liability has been fully retired.
Accumulated Unpaid Sick Leave
Upon retirement after 20 years of service or attaining age 55, employees are paid for eligible accumulated unused
sick leave based on the Village’s policy (see Note 1). The General Fund is typically used to liquidate these liabilities.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 42
Note 5. Long-Term Obligations (Continued)
Changes in long-term debt were as follows:
* These liabilities will be liquidated by the General Fund.
Balance Balance Due Within
May 1 Additions Retirements Dec. 31 One Year
Governmental Activities:
General Obligation Bonds
$4,500,000, 4.5%-4.9% General
Corporate Purpose Bond Series of
2001A; payable in annual installments
of $25,000 to $425,000 through
December 31, 2020 4,275,000 $ -$ 150,000 $ 4,125,000 $ 235,000 $
$5,485,000, 4.1%-4.4% General
Corporate Purpose Refunding Bond
Series of 2001B; payable in annual
installments of $215,000 to $645,000
through December 31, 2014 3,150,000 - 645,000 2,505,000 530,000
$1,364,070, 2%-3.875% General
Corporate Purpose Refunding Bond
Series 2002A; payable in annual
installments of $305,000 to $625,000
through December 31, 2007 142,381 - 142,381 - -
$1,000,000, 2.65%-4.1% General
Corporate Purpose Bond Series of
2002B; payable in annual installments
of $110,000 to $140,000 through
December 31, 2011 655,000 - 125,000 530,000 125,000
$2,600,000, 2.25%-3.25% General
Corporate Purpose Bond Series of
2003; payable in annual installments
of $150,000 to $320,000 through
December 31, 2013 1,980,000 - 250,000 1,730,000 260,000
Total General Obligation Bonds 10,202,381 - 1,312,381 8,890,000 1,150,000
Accumulated Unpaid Sick Leave* 785,265 386,002 103,982 1,067,285 128,075
Total Governmental Activities 10,987,646 $ 386,002 $ 1,416,363 $ 9,957,285 $ 1,278,075 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 43
Note 5. Long-Term Obligations (Continued)
Annual Debt Service Requirements to Maturity
The annual requirements to amortize all debt outstanding as of December 31, 2007, for governmental activities is as
follows:
Year Ending
December 31, Principal Interest
2008 1,150,000 $ 373,952 $
2009 1,165,000 330,840
2010 885,000 285,703
2011 1,015,000 251,198
2012 895,000 210,801
2013-2017 2,570,000 590,837
2018-2020 1,210,000 120,540
8,890,000 $ 2,163,871 $
General Obligation Bonds
Governmental Activities
Balance Balance Due Within
May 1 Additions Retirements Dec. 31 One Year
Business-type Activities:
Waterworks and Sewerage
$2,000,000, 4.4%-6.4% contract
payable to NWWC, payable in
annual installments of $50,000 to
$375,000 through May 1, 2008 353,696 $ -$ 353,696 $ -$ -$
$1,710,930, 2% - 3.875% General
Corporate Purpose Refunding Bond
Series of 2002A, payable in annual
installments of $305,000 to $625,000
through December 31, 2007 174,768 - 174,768 - -
Total Business-type Activities 528,464 - 528,464 - -
Total Long-Term Debt 11,516,110 $ 386,002 $ 1,944,827 $ 9,957,285 $ 1,278,075 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 44
Note 6. Employee Retirement Systems
Illinois Municipal Retirement
Plan Description
The Village’s defined benefit pension plan, Illinois Municipal Retirement Fund (IMRF), provides retirement, disability,
annual cost of living adjustments, and death benefits to plan members and beneficiaries. IMRF is an agent multiple-
employer pension plan that acts as a common investment and administrative agent for local governments and school
districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended
by the Illinois General Assembly.
IMRF issues a financial report that includes financial statements and required supplementary information. The report
may be obtained at www.imrf.org/pubs/pubs_homepage.htm or by writing to the Illinois Municipal Retirement Fund,
2211 York Road, Suite 500, Oak Brook, Illinois 60523.
Funding Policy
Participating employees are required to contribute 4.5% of their annual salary to IMRF. The Village is required to
contribute the remaining amounts necessary to fund the benefits of its own employees in the System, using the
actuarial basis specified by state statute (entry age normal); for calendar 2007 the rate was 10.06%. The employer
contribution requirements are established and may be amended by the IMRF Board of Trustees.
Annual Pension Cost and Net Pension Obligation
The Village's annual pension cost of $819,958 was equal to the Village's required and actual contributions. The
required contributions were determined as part of the December 31, 2005 actuarial valuation. For a description of the
significant actuarial assumptions, see “Significant Actuarial Assumptions.”
Defined Benefit Pension Plans for Public Safety Employees
The information included in this section pertaining to the Village’s Police and Fire pension funds, is based on actuarial
valuations performed May 1, 2006. Those actuarial valuations were performed to determine the Village’s required
contributions and annual pension costs for those plans for its fiscal year ended April 30, 2007. Effective May 1, 2007,
the Village adopted a calendar year end. The actuarial valuation was not updated through the calendar year end. As
such, the following section reports the same actuarial information that was presented in the comprehensive annual
financial report (CAFR) for the fiscal year ended April 30, 2007. The Village intends to obtain new actuarial valuations
consistent with its new calendar year, beginning with calendar year 2008.
Police Pension
Plan Description
Police sworn personnel are covered by the Police Pension Plan which is a defined benefit single-employer pension
plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contributions
levels are governed by Illinois Compiled Statutes and may be amended only by the Illinois legislature. The Village
accounts for the plan as a pension trust fund. The plan does not issue a stand-alone financial report.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 45
Note 6. Employee Retirement Systems (Continued)
Defined Benefit Pension Plans for Public Safety Employees (Continued)
Police Pension (Continued)
Plan Description (Continued)
The Police Pension Plan membership consisted of:
The Police Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining
the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit
of 2.5% of final salary for each year of service up to 30 years, to a maximum of 75% of such salary. Employees with
at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit.
Surviving spouses receive 100% of final salary for fatalities resulting from an act of duty, or otherwise the greater of
50% of final salary or the employee’s retirement benefit. Employees disabled in the line of duty receive 65% of final
salary.
The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 is
increased annually, following the first anniversary date of retirement and be paid upon reaching the age of at least 55
years, by 3% of the original pension and 3% annually thereafter.
Funding Policy
Covered employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee
leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded
without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the
plan as actuarially determined by an enrolled actuary. By the year 2033 the Village's contributions must accumulate to
the point where the past service cost for the Police Pension Plan is fully funded. Actuarial valuations are performed
annually.
Annual Pension Cost and Net Pension Asset
At April 30, 2007, the Village's annual pension cost was $1,426,580. The Village's actual contribution was
$1,401,979. For a description of the significant actuarial assumptions, see “Significant Actuarial Assumptions.”
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 23
Current employees
Vested 55
Nonvested 13
Total 91
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 46
Note 6. Employee Retirement Systems (Continued)
Police Pension (Continued)
Plan Description (Continued)
Annual Pension Cost and Net Pension Asset (Continued)
The net pension asset at April 30, 2007, was $98,906. It was comprised of the following components:
The net pension asset of $98,906 is also reported by the Village in the government-wide Statement of Net Assets at
December 31, 2007.
Reserves and Concentration of Investments
There are no assets legally reserved for purposes other than the payment of plan member benefits. There are no
long-term contracts for contributions. There are no investments (other than those issued or guaranteed by the U.S.
government) that represent 5% or more of net assets available for benefits.
Firefighters' Pension
Plan Description
Fire sworn personnel are covered by the Firefighters' Pension Plan which is a defined benefit single-employer
pension plan. Although this is a single-employer pension plan, the defined benefits as well as the employee and
employer contributions levels are mandated by Illinois Compiled Statutes and may be amended only by the Illinois
legislature. The Village accounts for the plan as a pension trust fund. The plan does not issue a stand-alone financial
report.
Annual required contribution (ARC) 1,429,749 $
Interest on the net pension asset (9,263)
Adjustment on the ARC 6,094
Annual pension cost 1,426,580
Contributions made 1,401,979
Decrease in pension asset (24,601)
Pension asset at May 1, 2006 123,507
Pension asset at April 30, 2007 98,906 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 47
Note 6. Employee Retirement Systems (Continued)
Firefighters’ Pension (Continued)
The Firefighters' Pension Plan membership consisted of:
The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Employees
attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement
benefit of one-half of the salary attached to the rank held in the fire service on the last day of service. The pension is
increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years, to a maximum of
75% of such salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after
age 60 and receive a reduced retirement benefit.
Surviving spouses receive 100% of final salary for fatalities resulting from an act of duty, or otherwise the greater of
54% of the final salary or the monthly retirement pension that the deceased firefighter was receiving at the time of
death. Surviving children receive 12% of the final salary. The maximum family survivor benefit is 75% of final salary.
Employees disabled in the line of duty receive 65% of final salary.
The monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 is increased
annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the
original pension and 3% annually thereafter.
Funding Policy
Covered employees are required to contribute 9.455% of their salary to the Firefighters' Pension Plan. If an employee
leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded
without accumulated interest. The Village is required to contribute the remaining amounts necessary to finance the
plan as actuarially determined by an enrolled actuary. By the year 2033 the Village's contributions must accumulate
to the point where the past service cost for the Firefighters' Pension Plan is fully funded. Actuarial valuations are
performed annually.
Annual Pension Cost and Net Pension Asset
At April 30, 2007, the Village's annual pension cost was $1,291,341. The Village's actual contribution was
$1,145,712. For a description of the significant actuarial assumptions, see “Significant Actuarial Assumptions.”
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 6
Current employees
Vested 50
Nonvested 11
Total 67
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 48
Note 6. Employee Retirement Systems (Continued)
Firefighters' Pension (Continued)
Annual Pension Cost and Net Pension Asset (Continued)
The net pension asset at April 30, 2007, was $105,055. It was comprised of the following components:
The net pension asset of $105,055 is also reported by the Village in the government-wide Statement of Net Assets at
December 31, 2007.
Reserves and Concentration of Investments
There are no assets legally reserved for purposes other than the payment of plan member benefits. There are no
long-term contracts for contributions. There are no investments (other than those issued or guaranteed by the U.S.
government) that represent 5% or more of net assets available for benefits
Summary of Significant Accounting Policies and Plan Asset Matters
The financial statements are prepared using the accrual basis of accounting. Plan member contributions are
recognized in the period in which the contributions are due. Employer contributions are recognized when due and the
employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when
due and payable in accordance with the terms of the plan. Administrative costs for the Police and Firefighters’
Pension Plans are financed primarily through investment earnings. Investments are reported at fair value. Short-term
investments are reported at cost, which approximates fair value.
Annual required contribution (ARC) 1,297,773 $
Interest on the net pension asset (18,801)
Adjustment on the ARC 12,369
Annual pension cost 1,291,341
Contributions made 1,145,712
Decrease in pension asset (145,629)
Pension asset at May 1, 2006 250,684
Pension asset at April 30, 2007 105,055 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 49
Note 6. Employee Retirement Systems (Continued)
Significant Actuarial Assumptions
The information presented in the notes and the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:
Illinois
Municipal
Retirement
Police
Pension
Fire-
fighters'
Pension
Actuarial Valuation Date December 31,
2007
May 1,
2006
May 1,
2006
Actuarial Cost Method Entry Age
Normal
Entry Age
Normal
Entry Age
Normal
Method Used to Determine Actuarial
Value of Assets
Five-Year
Smoothed
Market Value
Three-Year
Smoothed
Market Value
Three-Year
Smoothed
Market Value
Amortization Method Level Percent-
age of Projected
Payroll-Closed
Basis
Level Percent-
age of Projected
Payroll-Closed
Basis
Level Percent-
age of Projected
Payroll-Closed
Basis
Amortization Period Remaining 25 years 27 years 27 years
Significant Actuarial Assumptions
(a) Rate of Return on Investment of
Present and Future Assets
7.50%
compounded
annually
7.50%
compounded
annually
7.50%
compounded
annually
(b) Projected Salary Increases -
Attributable to Inflation
4.00%
compounded
annually
5.00%
compounded
annually
5.00%
compounded
annually
(c) Additional Projected Salary
Increases - Attributable to
Seniority/Merit
0.4% to 10.0%
(Note - separate information for (b
and c) not available)
(d) Postretirement Benefit Increases 3.00% 3.00%
compounded
annually
3.00%
compounded
annually
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 50
Note 6. Employee Retirement Systems (Continued)
Individual Plan Financial Statements
Statements of Fiduciary Net Assets – Pension Trust Funds
December 31, 2007
Police Firefighters'
Pension Pension
Assets
Cash and equivalents 9,816,035 $ 6,602,902 $
Investments
Certificates of deposit - 2,518,000
U.S. government and agency obligations 16,815,524 6,506,207
Open-end mutual funds 6,234,653 9,498,603
Receivables
Pension contributions 1,594,227 1,334,734
Interest 9,325 60,069
Due from other funds 33,838 30,666
Total assets 34,503,602 26,551,181
Liabilities
Accounts payable - 1,710
Net Assets
Held in trust for pension benefits
(Schedules of funding progress for the
plans are presented in the required
supplementary information section.) 34,503,602 $ 26,549,471 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 51
Note 6. Employee Retirement Systems (Continued)
Individual Plan Financial Statements
Statements of Changes in Fiduciary Net Assets – Pension Trust Funds
Eight Months Ended December 31, 2007
Police Firefighters'
Pension Pension
Additions
Contributions
Employer 1,571,265 $ 1,342,531 $
Participants 400,527 331,255
1,971,792 1,673,786
Investment income
Net appreciation in fair
value of investments 546,327 191,243
Interest income 830,037 410,717
Less investment expense (20,941) (29,233)
1,355,423 572,727
Total additions 3,327,215 2,246,513
Deductions
Administration 6,223 30,860
Pension benefits and refunds 902,961 229,911
Total deductions 909,184 260,771
Change in net assets 2,418,031 1,985,742
Net assets - beginning 32,085,571 24,563,729
Net assets - ending 34,503,602 $ 26,549,471 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 52
Note 6. Employee Retirement Systems (Continued)
Trend Information
*IMRF is reported on a calendar year and the Police and Firefighter’s Pension information is reported on a fiscal year
ending April 30th.
Note 7. Contingent Liabilities
Litigation
The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable,
in the opinion of the Village’s attorney the resolution of these matters will not have a material adverse effect on the
financial condition of the Village.
Northwest Water Commission (NWWC)
The Village's water purchase contract with the Northwest Water Commission provides that each member is liable for
its proportionate share of any costs arising from defaults in payment obligations by other members.
Solid Waste Agency of Northern Cook County (SWANCC)
The Village's contract with the Solid Waste Agency of Northern Cook County provides that each member is liable for
its proportionate share of any costs arising from defaults in payment obligations by other members.
Note 8. Segment Information
The Village maintains two major proprietary funds. One major fund accounts for the activities of providing water and
sewer services to residents of the Village. The other major fund accounts for the operation of the Arboretum golf
course. The Village also maintains two non-major proprietary funds. One non-major fund maintained by the Village is
the Buffalo Grove Golf Course Fund, which is supported by charges to users. The other non-major fund maintained
by the Village is the Refuse Service Fund, which is supported by charges to the residents. There are no bonds or
other revenue backed debt instruments in either of the nonmajor proprietary funds.
Illinois Fire-
Municipal Police fighters'
Year* Retirement Pension Pension
Annual Pension Cost 2005 704,606 $ 985,067 $ 966,226 $
2006 800,153 1,070,771 979,169
2007 819,958 1,426,580 1,291,341
Percent Contributed 2005 100.00 % 103.15 % 101.90 %
2006 100.00 96.20 104.20 %
2007 100.00 98.30 88.70
Net Pension Asset 2005 -$ 163,757 $ 209,594 $
2006 - 123,507 250,684
2007 - 98,906 105,055
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 53
Note 9. Interfund Activity
Due To/From Other Funds
Individual interfund balances for the Village at December 31, 2007, are shown as follows:
Due From
Detail/Explanation Other Funds
General Fund
Arboretum Golf Course Fund Loan for short-term cash needs 221,911 $
Nonmajor Governmental Fund Loan for short-term cash needs 116,334
Nonmajor Enterprise Fund Loan for short-term cash needs 74,576
Nonmajor Governmental Funds
General Fund Loan for short-term cash needs 31,707
Police Pension Fund
General Fund Loan for short-term cash needs 33,838
Fire Pension Fund
General Fund Loan for short-term cash needs 30,666
Total 509,032 $
Due To
Detail/Explanation Other Funds
General Fund
Nonmajor Governmental Funds Loan for short-term cash needs 31,707 $
Police Pension Fund Loan for short-term cash needs 33,838
Fire Pension Fund Loan for short-term cash needs 30,666
Arboretum Golf Course Fund
General Fund Loan for short-term cash needs 221,911
Nonmajor Governmental Funds
General Fund Loan for short-term cash needs 116,334
Nonmajor Enterprise Fund
General Fund Loan for short-term cash needs 74,576
Total 509,032 $
Fund
Fund
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 54
Note 9. Interfund Activity (Continued)
Transfers In/Out
The interfund transfers for the eight months ended December 31, 2007, are as follows:
Note 10. Risk Management
The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; natural disasters; and injuries to the Village's employees. The Village currently reports all its risk
management activities related to its participation in the Intergovernmental Risk Management Agency in its General
Fund and Waterworks and Sewerage Fund. Beginning in fiscal year 2006, the Village elected to self-insure its health
claims program. The Village accounts for this activity in an internal service fund – the Health Insurance Reserve
Fund.
The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of
municipalities and special districts in Northeastern Illinois, which have formed an association under the Illinois
Intergovernmental Cooperation Statute to pool its risk management needs. The agency administers a mix of self-
insurance and commercial insurance coverages; property/casualty and workers' compensation claim
administration/litigation management services; unemployment claim administration; extensive risk management/loss
control consulting and training programs; and a risk information system and financial reporting service for its
members.
Detail Amount
General Fund
Waterworks and Sewerage Fund Administrative expenses 654,790 $
Nonmajor Governmental Funds
Waterworks and Sewerage Fund Debt service 180,000
General Fund Subsidy for street maintenance 893,360
General Fund Subsidy for capital projects funding 311,576
General Fund Subsidy for retirement plan funding 200,000
General Fund Debt service 609,280
Nonmajor Enterprise Fund Debt service 65,160
Nonmajor Governmental Fund Subsidy for street maintenance 150,000
Total 3,064,166 $
Receiving Fund/Disbursing Fund
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 55
Note 10. Risk Management (Continued)
The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate
funds. Each member assumes the first $1,000 of each occurrence for years prior to 2004 and $2,500 for each
occurrence in 2004 and subsequent years. Beginning in 2005, members were given the option to assume higher
deductibles. IRMA has a mix of self-insurance and commercial insurance at various amounts above that level.
Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of
Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the
Board of Directors.
Initial contributions are determined each year based on the individual member's eligible revenue as defined in the by-
laws of IRMA, experience modification factors based on past member loss experience, and optional deductible
credits. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during
which they were a member. Supplemental contributions may be required to fund these deficits.
There has been no reduction in the Village's insurance coverage for any of its programs since the prior fiscal year.
Settlements have not exceeded insurance coverage for the current year or prior three fiscal years.
The Village reports its risks of loss for health claims in the Health Insurance Reserve Fund, which is reported as an
internal service fund. The self-insurance liability includes an estimate of incurred but not reported claims.
A reconciliation of the total claims liability for the current year is below:
Unpaid claims liability - April 30, 2006 364,956 $
Claims incurred 4,528,286
Claims paid (4,401,397)
Unpaid claims liability - April 30, 2007 491,845 $
Unpaid claims liability - May 1, 2007 491,845 $
Claims incurred 2,991,133
Claims paid (2,996,162)
Unpaid claims liability - December 31, 2007 486,816 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 56
Note 11. Joint Ventures
Solid Waste Agency of Northern Cook County (SWANCC)
Description of Joint Venture
The Village is a member of the Solid Waste Agency of Northern Cook County (the Agency), which consists of 23
municipalities. The Agency is a municipal corporation and public body politic and corporate established pursuant to
the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois,
as amended (the Act). The Agency is empowered under the Act to plan, construct, finance, operate and maintain a
solid waste disposal system to serve its members.
The members of the Agency and their percentage shares based on a formula contained in the Agency agreement
are:
% Share % Share
Arlington Heights 11.13% Mount Prospect 8.05
Barrington 1.65 Niles 3.44
Buffalo Grove 6.37 Palatine 9.14
Elk Grove Village 5.77 Park Ridge 5.08
Evanston 7.91 Prospect Heights 1.38
Glencoe 1.53 Rolling Meadows 2.90
Glenview 4.77 Skokie 8.15
Hoffman Estates 3.71 South Barrington .70
Inverness 1.15 Wheeling 4.06
Kenilworth .81 Wilmette 4.23
Lincolnwood 1.84 Winnetka 3.09
Morton Grove 3.14
100.00%
These percentage shares are subject to change in future years based on the population of the municipalities. The
members form a contiguous geographic service area which is located northwest of downtown Chicago. Under the
Agency Agreement, additional members may join the Agency upon the approval of each member.
The Agency is governed by a Board of Directors, which consists of one appointed Mayor or President from each
member municipality. Each Director has an equal vote. The officers of the Agency are appointed by the Board of
Directors. The Board of Directors determines the general policy of the Agency, makes all appropriations, approves
contracts, adopts resolutions providing for the issuance of Bonds or Notes by the Agency, adopts by-laws, rules and
regulations, and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or
the by-laws.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 57
Note 11. Joint Ventures (Continued)
Solid Waste Agency of Northern Cook County (SWANCC) (Continued)
Description of Joint Venture (Continued)
The Executive Committee of the Agency consists of seven members elected by the Board of Directors. Each member
is entitled to one vote on the Executive Committee. The Executive Committee may take any action not specifically
reserved to the Board of Directors by the Act, the Agency Agreement or the Bylaws.
Summary Financial Information of Joint Venture
Summary of Financial Position as of April 30, 2007:
Summary of Revenues, Expenses and Changes in Net Assets for the year ended April 30, 2007:
Complete financial statements for SWANCC can be obtained from the Agency's administrative office at 2700 Patriot
Boulevard, Suite 110, Glenview, Illinois 60026.
Assets Liabilities and Net Assets
Current assets 6,267,738 $ Current liabilities 4,259,962 $
Restricted assets 1,034,968 Long-Term liabilities 7,917,288
Capital assets 13,490,546
Other assets 111,573 Total liabilities 12,177,250
Net assets 8,727,575
Total liabilities
Total Assets 20,904,825 $ and net assets 20,904,825 $
Operating revenues 15,663,824 $
Operating expenses 15,847,883
Operating loss (184,059)
Nonoperating revenue 167,073
Net loss (16,986)
Net assets
Beginning 8,744,561
Ending 8,727,575 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 58
Note 11. Joint Ventures (Continued)
The Agency's bonds are revenue obligations. They are limited obligations of the Agency with a claim for payment
solely from and secured by a pledge of the Revenues of the System and amounts in various Funds and Accounts
established by Agency resolutions. The bonds are not a debt of any member. The Agency has no power to levy
taxes.
Revenues of the system consist of (a) all receipts derived from Solid Waste Disposal Contracts or any other contracts
for the disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees, service
charges and all grants, rents and receipts derived by the Agency from the ownership and operation of the system.
The minimum annual cost includes operation and maintenance of the system as well as project costs.
The Agency covenants to establish fees and charges sufficient to provide revenues to meet all its requirements.
The Agency has entered into Solid Waste Disposal Contracts with the member municipalities. The Contracts are
irrevocable and may not be terminated or amended except as provided in the Contract. Each member is obligated,
on a "take or pay" basis, to purchase or in any event to pay for a minimum annual cost of the system. The minimum
annual cost includes operation and maintenance of the system as well as project costs.
The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable,
without regard to performance or nonperformance by the Agency of its obligations under this Contract.
The payments required to be made by the Village under this Contract shall be required to be made solely from
revenues to be derived by the Village from the operation of the Village's System. The Village is not prohibited by the
Contract from using any other available funds to make the payments required by the Contract. The Contract shall not
constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation.
In accordance with the joint venture agreement, the Village remitted $777,716 to SWANCC for the eight months
ended December 31, 2007.
The Village has committed to make payments to the Solid Waste Agency of Northern Cook County. The Village has
committed to pay approximately $770,000 annually. This amount has been calculated using the Village’s current
allocation percentage of 6.37%. In future years, this allocation percentage will be subject to change.
Northwest Water Commission (NWWC)
Description of Joint Venture
The Village is a member of the Northwest Water Commission (the Commission), which consists of four municipalities.
The Commission is a municipal corporation and public body politic and corporate established pursuant to the
Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the
Act). The Commission is empowered under the Act to plan, construct, improve, extend, acquire, finance, operate and
maintain a water supply system to serve its members and other potential water purchasers.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 59
Note 11. Joint Ventures (Continued)
The four members of the Commission and their percentage shares as of the date of this report are as follows:
These percentage shares are based on formulae contained in the water supply agreement and are subject to change
in future years based on the consumption by the municipalities.
The members form a contiguous geographic service area which is located northwest of downtown Chicago. Under
the Commission Agreement, additional members may join the Commission upon the approval of each member.
The Commission is governed by a Board of Commissioners, which consists of one Village Manager from each
member municipality. Each Commissioner has an equal vote. The officers of the Commission are appointed by the
Board of Commissioners. The Board of Commissioners determines the general policy of the Commission, makes all
appropriations, approves contracts for sale or purchase of water, adopts resolutions providing for the issuance of
Bonds or Notes by the Commission, adopts by-laws, rules and regulations, and exercises such powers and performs
such duties as may be prescribed in the Commission Agreement or the by-laws.
Village of Arlington Heights 35.96 %
Village of Buffalo Grove 17.86
Village of Palatine 27.61
Village of Wheeling 18.57
100.00 %
% Share
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 60
Note 11. Joint Ventures (Continued)
Summary Financial Information of Joint Venture for the fiscal year ended April 30, 2007:
Complete financial statements for NWWC can be obtained from the Commission's administrative office at 1525 North
Wolf Road, Des Plaines, Illinois, 60016.
The Commission's bonds are revenue obligations. They are limited obligations of the Commission with a claim for
payment solely from and secured by a pledge of the Revenues of the System and amounts in various Funds and
Accounts established by Commission resolutions. The bonds are not a debt of any member. The Commission has
no power to levy taxes.
Revenues of the system consist of (1) all receipts derived from Water Supply Contract of any other contract for the
supply of water; (2) all income derived from the investment of monies; and (3) all income, fees, water service charges
and all grants, rents and receipts derived by the Commission from the ownership and operation of the system and the
sale of water.
The Commission covenants to establish fees and charges sufficient to provide revenues to meet all its requirements.
Assets Liabilities and Net Assets
Current assets 2,756,683 $ Current liabilities 4,046,650 $
Restricted assets 11,094,091 Long-Term liabilities 11,920,445
Capital assets 40,295,349 Total Liabilities 15,967,095
Long-term receivable 353,966
Other assets 202,510 Net assets 38,735,504
Total Liabilities
Total Assets 54,702,599 $ and Net Assets 54,702,599 $
Total revenues 9,515,558 $
Total expenses 8,788,387
Change in net assets 727,171
Net assets
Beginning of year 38,008,333
End of year 38,735,504 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 61
Note 11. Joint Ventures (Continued)
The Commission has entered into Water Supply Contracts with the four member municipalities for a term of 40 years,
extending to 2025. The Contracts are irrevocable and may not be terminated or amended except as provided in the
Contract. Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum
annual quantity of water.
The Commission has entered into an agreement with the City of Evanston under which the City has agreed to sell
quantities of Lake Water sufficient to supply the projected water needs of the Commission through the year 2025.
The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable,
without regard to performance or nonperformance by the Commission of its obligations under this Contract.
The payments required to be made by the Village under this Contract shall be required to be made solely from
revenues to be derived by the Village from the operation of the Village's System. The Village is not prohibited by the
Contract from using any other available funds to make the payments required by the Contract. The Contract shall not
constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation.
The obligation of the Village to make payments required by this Contract from revenues of the Village's System shall
be payable from the operation and maintenance account of the Village's System Fund and from all other accounts of
the Village's System Fund in which there are available funds.
In accordance with the joint venture agreement, the Village remitted $1,269,018 to NWWC for the eight months ended
December 31, 2007. The Village's equity interest in NWWC was $7,619,623 at December 31, 2007. The Village's
net investment and its share of the operating results of NWWC are recorded in the Village's Waterworks and
Sewerage Fund.
Commitments to the Northwest Water Commission (NWWC)
The Village has committed to retire a portion of the outstanding debt of the Northwest Water Commission of
approximately $3 million. These amounts have been calculated using the Village's current allocation percentage of
18.2%. In future years, this allocation percentage will be subject to change.
Note 12. Retiree Health Savings Plan
The Village determined that the establishment of a retiree health savings plan, to be administered by the ICMA
Retirement Corporation, serves the interests of the Village by enabling it to provide reasonable security regarding
such employees’ health needs during retirement, by providing increased flexibility in its personnel management
systems, and by assisting in the attraction and retention of competent personnel. The Village adopted the plan in the
form of the ICMA Retirement Corporation's VantageCare Retiree Health Savings Plan. The assets of the plan will be
held in a trust, with the Village serving as trustee, for the exclusive benefit of the plan participants and their
beneficiaries.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 62
Note 13. Pledged Receivables
The Village has pledged a portion of future sales tax revenues to a local retailer. In order to increase its
competitiveness in the marketplace by establishing a single-order acceptance point for all its credit sales, the local
retailer entered into a municipal sales tax incentive agreement with the Village, where the Village will pay to the
retailer, a portion of the municipal component of the sales tax revenue generated by the retailer from credit sales as
provided in the agreement. The agreement commenced November 2000 (first sales tax year), was amended in
March 2003 and terminates in calendar year 2020.
The terms of the agreement indicate that beginning in November 2000, the Village and the retailer shall distribute on
a monthly basis, the municipal sales taxes resulting from taxable credit sales with single-order acceptance at the
retailer’s property and received by the Village in the following amounts:
• for the first sales tax year through calendar year 2010, 80% to the retailer and 20% to the Village, in addition
to any interest accrued on such amounts;
• for calendar year 2011 through 2020, 75% to the retailer and 25% to the village.
Notwithstanding the terms stated above, the minimum municipal sales taxes to be retained by the Village shall be as
follows:
• no less than $450,000 annually effective as of the third sales tax year (2002) through calendar year
2010
• no less than $500,000 annually beginning with calendar year 2011 through 2020
In the event that the municipal sales taxes retained by the Village fall below the minimum noted above, the Village
shall document the difference and invoice the retailer for the said amount, which shall be paid within 30 days of
receipt.
The total municipal sales taxes collected by the Village during the eight months ended December 31, 2007, amounted
to $5,212,222, of which $1,111,939 (or 21%) was remitted to the local retailer). Municipal sales taxes totaling
$358,225 was due to the local retailer as of December 31, 2007, and is included in accounts payable on the
statement of net assets.
Note 14. New Governmental Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following statements:
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions, establishes standards for the measurement, recognition, and display of OPEB expense/expenditures and
related liabilities (assets), note disclosures, and if applicable, required supplementary information. The Village is
required to implement this Statement for the year ending December 31, 2008.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 63
Note 14. New Governmental Accounting Standards (Continued)
Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, will be effective for the
Village beginning with its year ending December 31, 2008. This statement addresses accounting and financial
reporting for pollution (including contamination) remediation obligations, which are obligations to address the current
or potential detrimental effects of existing pollution by participating in pollution remediation activities such as site
assessment and cleanups.
Statement No. 50, Pension Disclosures – an amendment to GASB Statements No. 25 and No. 27, will be effective for
the Village beginning with its year ending December 31, 2008. This statement more closely aligns the financial
reporting requirements for pensions with those for other postemployment benefits (OPEB) and, in doing so, enhances
information disclosed in the notes to the financial statements or presented as required supplementary information
(RSI) by pension plans and by employers that provide pension benefits.
Statement No. 51, Accounting and Financial Reporting for Intangible Assets, will be effective for the Village beginning
with its year ending December 31, 2010. The objective of this Statement is to establish accounting and financial
reporting requirements for intangible assets to reduce these inconsistencies, thereby enhancing the comparability of
the accounting and financial reporting of such assets among state and local governments.
Management has not currently determined what impact, if any, these Statements may have on its financial
statements.
Village of Buffalo Grove, Illinois
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund
Eight Months Ended December 31, 2007
Original/Final Final Over/
Appropriations Budget Actual Under
Revenues
Charges for services -$ 1,180,250 $ 930,786 $ (249,464) $
Licenses and permits - 247,900 245,148 (2,752)
Fines and fees - 948,450 1,050,918 102,468
Property taxes - 7,658,200 4,674,053 (2,984,147)
Other taxes - 11,286,793 11,282,739 (4,054)
Investment income - 672,500 800,917 128,417
Miscellaneous - 400,370 1,227,304 826,934
Total revenues - 22,394,463 20,211,865 (2,182,598)
Expenditures
Current
General government 3,234,987 2,892,591 2,966,010 (73,419)
Public safety 14,985,180 14,022,162 13,917,502 104,660
Public works 4,775,065 4,111,119 4,358,578 (247,459)
Total expenditures 22,995,232 21,025,872 21,242,090 (216,218)
Excess (deficiency) of revenues
over expenditures (22,995,232) 1,368,591 (1,030,225) (2,398,816)
Other financing sources (uses)
Transfers in - 654,790 654,790 -
Transfers out (2,695,000) (2,139,590) (2,014,216) 125,374
Total other financing sources (uses) (2,695,000) (1,484,800) (1,359,426) 125,374
Net change in fund balance (25,690,232) $ (116,209) $ (2,389,651) (2,273,442) $
Fund balance - beginning 29,402,336
Fund balance - ending 27,012,685 $
See Note to Required Supplementary Information.
- 64 -
Village of Buffalo Grove, Illinois
Required Supplementary Information
Analysis of Funding Progress
December 31, 2007
Illinois Municipal Retirement Fund
(1) (2) (2)–(1)
Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3)
Valuation Value of Liability (AAL) AAL Funded Covered
Date Assets Entry Age (UAAL) Ratio Payroll
2007 20,472,503 $ 24,448,341 $ 3,975,838 $ 83.74 % 8,150,673 $ 48.78 %
2006 18,857,833 21,509,448 2,651,615 87.67 7,354,350 36.06
2005 19,165,236 21,249,065 2,083,829 90.19 7,219,323 28.86
2004 18,026,362 20,890,805 2,864,443 86.29 7,327,170 39.09
2003 17,323,921 18,757,785 1,433,864 92.36 6,848,381 20.94
2002 16,599,668 17,044,061 444,393 97.39 6,676,240 6.66
Police Pension Fund
(1) (2) (2)–(1)
Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3)
Valuation Value of Liability (AAL) AAL Funded Covered
Date Assets Entry Age (UAAL) Ratio Payroll
2006 29,227,995 $ 47,531,537 $ 18,303,542 $ 61.49 % 5,054,280 $ 362.14 %
2005 27,639,953 43,348,257 15,708,304 63.76 4,996,214 314.40
2004 26,227,214 36,676,875 10,449,661 71.51 4,852,494 215.35
2003 24,644,688 31,112,833 6,468,145 79.21 4,685,876 138.03
2002 22,787,535 28,638,849 5,851,314 79.57 4,606,411 127.03
2001 21,081,167 25,371,812 4,290,645 83.09 4,295,215 99.89
Firefighters' Pension Fund
(1) (2) (2)–(1)
Actuarial Actuarial Actuarial Accrued Unfunded (1)/(2) (3)
Valuation Value of Liability (AAL) AAL Funded Covered
Date Assets Entry Age (UAAL) Ratio Payroll
2006 21,406,226 $ 32,252,477 $ 10,846,251 $ 66.37 % 4,585,548 $ 236.53 %
2005 18,764,563 29,359,761 10,595,198 63.91 4,372,057 242.34
2004 16,695,162 22,101,873 5,406,711 75.54 4,179,633 129.36
2003 14,412,919 18,910,282 4,497,363 76.22 4,045,642 111.17
2002 13,088,767 16,632,406 3,543,639 78.69 3,842,336 92.23
2001 11,281,291 14,324,444 3,043,153 78.76 3,646,010 83.47
Payroll
((2-1)/3)
((2-1)/3)
UAAL as a
Percentage of
Covered
UAAL as a
Percentage of
Covered
Payroll
((2-1)/3)
UAAL as a
Percentage of
Covered
Payroll
- 65 -
Village of Buffalo Grove, Illinois
Required Supplementary Information
Employer Contributions
Eight Months Ended December 31, 2007
Illinois Municipal Retirement Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2007 $ 819,958 100 %
2006 800,153 100
2005 704,606 100
2004 666,772 100
2003 434,187 100
2002 371,199 100
Police Pension Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2006 $ 1,429,749 98.1 %
2005 1,075,170 95.8
2004 984,482 103.2
2003 793,475 101.4
2002 842,181 98.5
2001 655,827 103.9
Firefighters' Pension Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2006 $ 1,297,773 88.3 %
2005 984,799 103.6
2004 965,384 101.9
2003 896,876 101.6
2002 853,379 98.2
2001 764,158 103.3
- 66 -
Village of Buffalo Grove, Illinois
Note to Required Supplementary Information
- - 67
Note 1. Budgetary Basis of Accounting
The General Fund Budget is adopted on a basis of accounting consistent with accounting principles generally accepted in
the United States of America.
Village of Buffalo Grove, Illinois
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2007
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Assets
Cash and equivalents 1,228,866 $ 33,200 $ 352,914 $ 1,614,980 $
Investments - - 1,916,000 1,916,000
Receivables
Property taxes 1,311,706 741,312 - 2,053,018
Motor fuel tax 100,436 - - 100,436
Interest - - 11,647 11,647
Due from other funds - 31,707 - 31,707
Total assets 2,641,008 $ 806,219 $ 2,280,561 $ 5,727,788 $
Liabilities
Accounts payable and accrued liabilities 115,823 $ -$ 116,012 $ 231,835 $
Due to other funds 116,334 - - 116,334
Deferred property taxes 1,259,872 707,887 - 1,967,759
Total liabilities 1,492,029 707,887 116,012 2,315,928
Fund Balances
Reserved for debt service - 98,332 - 98,332
Unreserved
Designated for employee benefits 150,000 - - 150,000
Undesignated 998,979 - 2,164,549 3,163,528
Total fund balances 1,148,979 98,332 2,164,549 3,411,860
Total liabilities and fund balances 2,641,008 $ 806,219 $ 2,280,561 $ 5,727,788 $
- 68 -
Village of Buffalo Grove, Illinois
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Eight Months Ended December 31, 2007
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Revenues
Charges for services 98,024 $ -$ -$ 98,024 $
Intergovernmental 815,669 - - 815,669
Property taxes 643,476 480,317 - 1,123,793
Investment income 28,438 13,230 68,859 110,527
Miscellaneous 27,644 - - 27,644
Total revenues 1,613,251 493,547 68,859 2,175,657
Expenditures
Current
General government 489,203 - - 489,203
Public safety 293,878 - - 293,878
Public works 2,866,809 - - 2,866,809
Capital projects - - 502,701 502,701
Debt service
Principal - 1,312,381 - 1,312,381
Interest and fiscal charges - 424,220 - 424,220
Total expenditures 3,649,890 1,736,601 502,701 5,889,192
Deficiency of revenues over
expenditures (2,036,639) (1,243,054) (433,842) (3,713,535)
Other financing sources (uses)
Transfers in 1,243,360 854,440 311,576 2,409,376
Transfers out - - (150,000) (150,000)
Total other financing sources (uses) 1,243,360 854,440 161,576 2,259,376
Net change in fund balances (793,279) (388,614) (272,266) (1,454,159)
Fund balances - beginning 1,942,258 486,946 2,436,815 4,866,019
Fund balances - ending 1,148,979 $ 98,332 $ 2,164,549 $ 3,411,860 $
- 69 -
Village of Buffalo Grove, Illinois
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2007
Illinois Motor Retiree
Municipal Fuel Parking Health
Retirement Tax Lot Savings Totals
Assets
Cash and equivalents 47,228 $ -$ 195,905 $ 985,733 $ 1,228,866 $
Receivables
Property taxes 1,311,706 - - - 1,311,706
Motor fuel tax - 100,436 - - 100,436
Total assets 1,358,934 $ 100,436 $ 195,905 $ 985,733 $ 2,641,008 $
Liabilities
Accounts payable and accrued liabilities 42,394 $ 49,207 $ 24,222 $ -$ 115,823 $
Due to other funds - 116,334 - - 116,334
Deferred property taxes 1,259,872 - - - 1,259,872
Total liabilities 1,302,266 165,541 24,222 - 1,492,029
Fund Balances
Unreserved - designated for
employee benefits - - - 150,000 150,000
Unreserved - undesignated 56,668 (65,105) 171,683 835,733 998,979
Total fund balances (deficit)56,668 (65,105) 171,683 985,733 1,148,979
Total liabilities and fund balances 1,358,934 $ 100,436 $ 195,905 $ 985,733 $ 2,641,008 $
- 70 -
Village of Buffalo Grove, Illinois
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit)
Eight Months Ended December 31, 2007
Illinois Motor Retiree
Municipal Fuel Parking Health
Retirement Tax Lot Savings Totals
Revenues
Charges for services -$ -$ 98,024 $ -$ 98,024 $
Intergovernmental - 815,669 - - 815,669
Property taxes 643,476 - - - 643,476
Investment income 445 22 - 27,971 28,438
Miscellaneous - 27,644 - - 27,644
Total revenues 643,921 843,335 98,024 27,971 1,613,251
Expenditures
General government 300,294 - 155,757 33,152 489,203
Public safety 264,660 - - 29,218 293,878
Public works 363,025 2,463,706 - 40,078 2,866,809
Total expenditures 927,979 2,463,706 155,757 102,448 3,649,890
Deficiency of revenues
over expenditures (284,058) (1,620,371) (57,733) (74,477) (2,036,639)
Other financing sources
Transfers in - 1,043,360 - 200,000 1,243,360
Net change in fund balances (284,058) (577,011) (57,733) 125,523 (793,279)
Fund balances - beginning 340,726 511,906 229,416 860,210 1,942,258
Fund balances (deficit) - ending 56,668 $ (65,105) $ 171,683 $ 985,733 $ 1,148,979 $
- 71 -
Village of Buffalo Grove, Illinois
Illinois Municipal Retirement Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Revenues
Property taxes -$ 1,025,329 $ 643,476 $
Other taxes - 5,400 -
Investment income - 1,500 445
Total revenues - 1,032,229 643,921
Expenditures
General government 308,714 288,176 300,294
Public safety 272,081 253,979 264,660
Public works 373,205 348,375 363,025
Total expenditures 954,000 890,530 927,979
Net change in fund balance (954,000) $ 141,699 $ (284,058)
Fund balance - beginning 340,726
Fund balance - ending 56,668 $
- 72 -
Village of Buffalo Grove, Illinois
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Revenues
Intergovernmental -$ 823,585 $ 815,669 $
Investment income - 200 22
Miscellaneous - 25,000 27,644
Total revenues - 848,785 843,335
Expenditures
Public works 3,000,000 2,765,000 2,463,706
Deficiency of revenues over expenditures (3,000,000) (1,916,215) (1,620,371)
Other financing sources
Transfers in - 893,360 1,043,360
Net change in fund balance (3,000,000) $ (1,022,855) $ (577,011)
Fund balance - beginning 511,906
Fund balance (deficit) - ending (65,105) $
- 73 -
Village of Buffalo Grove, Illinois
Parking Lot Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Revenues
Charges for services -$ 83,070 $ 98,024 $
Expenditures
General government 206,550 149,142 155,757
Net change in fund balance (206,550) $ (66,072) $ (57,733)
Fund balance - beginning 229,416
Fund balance - ending 171,683 $
- 74 -
Village of Buffalo Grove, Illinois
Debt Service Fund - Facilities Development Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Revenues
Property taxes -$ 790,519 $ 480,317 $
Investment income - 3,250 13,230
Total revenues - 793,769 493,547
Expenditures
Principal 1,325,000 1,309,190 1,312,381
Interest and fiscal charges 481,500 428,515 424,220
Total expenditures 1,806,500 1,737,705 1,736,601
Deficiency of revenues over expenditures (1,806,500) (943,936) (1,243,054)
Other financing sources
Transfers in - 854,440 854,440
Net change in fund balance (1,806,500) $ (89,496) $ (388,614)
Fund balance - beginning 486,946
Fund balance - ending 98,332 $
- 75 -
Village of Buffalo Grove, Illinois
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2007
Street Facilities
Maintenance Development Totals
Assets
Cash and equivalents 319,694 $ 33,220 $ 352,914 $
Investments 1,916,000 - 1,916,000
Receivables
Interest 11,647 - 11,647
Total assets 2,247,341 $ 33,220 $ 2,280,561 $
Liabilities
Accounts payable and accrued liabilities 65,035 $ 50,977 $ 116,012 $
Fund Balances (Deficit)
Unreserved 2,182,306 (17,757) 2,164,549
Total liabilities and fund balances 2,247,341 $ 33,220 $ 2,280,561 $
- 76 -
Village of Buffalo Grove, Illinois
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances (Deficit)
Eight Months Ended December 31, 2007
Street Facilities
Maintenance Development Totals
Revenues
Investment income 68,618 $ 241 $ 68,859 $
Expenditures
Capital projects 124,301 378,400 502,701
Deficiency of revenues over expenditures (55,683) (378,159) (433,842)
Other financing sources (uses)
Transfers in - 311,576 311,576
Transfers out (150,000) - (150,000)
Total other financing sources (uses) (150,000) 311,576 161,576
Net change in fund balances (205,683) (66,583) (272,266)
Fund balances - beginning 2,387,989 48,826 2,436,815
Fund balances (deficits) - ending 2,182,306 $ (17,757) $ 2,164,549 $
- 77 -
Village of Buffalo Grove, Illinois
Street Maintenance Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Revenues
Investment income -$ 69,800 $ 68,618 $
Miscellaneous - 1,116,500 -
Total revenues - 1,186,300 68,618
Expenditures
Capital projects 3,690,000 2,823,404 124,301
Deficiency of revenues over expenditures (3,690,000) (1,637,104) (55,683)
Other financing uses
Transfers out - - (150,000)
Net change in fund balance (3,690,000) $ (1,637,104) $ (205,683)
Fund balance - beginning 2,387,989
Fund balance - ending 2,182,306 $
- 78 -
Village of Buffalo Grove, Illinois
Facilities Development Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance (Deficit) – Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Revenues
Investment income -$ -$ 241 $
Miscellaneous - 2,250,000 -
Total revenues - 2,250,000 241
Expenditures
Capital projects 3,185,000 2,886,950 378,400
Deficiency of revenues over expenditures (3,185,000) (636,950) (378,159)
Other financing sources
Transfers in - 636,950 311,576
Net change in fund balance (deficit)(3,185,000) $ -$ (66,583)
Fund balance - beginning 48,826
Fund deficit - ending (17,757) $
- 79 -
Village of Buffalo Grove, Illinois
Waterworks and Sewerage Fund
Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating
Expenses and Transfers - Budget and Actual (Budgetary Basis)
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Operating revenues
Water and sewerage charges -$ 4,326,436 $ 4,664,149 $
Connection and recapture fees - 94,500 135,044
Total operating revenues - 4,420,936 4,799,193
Operating expenses excluding depreciation 5,086,227 4,616,264 4,544,753
Less capital assets capitalized (655,000) (598,592) (192,373)
Total operating expenses
(excluding depreciation)4,431,227 4,017,672 4,352,380
Nonoperating revenues (expenses)
Investment income - 268,900 289,093
Principal retirement (353,696) (353,696) (353,696)
Interest expense (14,142) (14,142) (14,142)
(367,838) (98,938) (78,745)
Transfers out (835,000) (834,790) (834,790)
- 80 -
Village of Buffalo Grove, Illinois
Arboretum Golf Course
Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses
and Transfers - Budget and Actual (Budgetary Basis)
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Operating revenues
Daily greens fees and memberships -$ 840,000 $ 709,675 $
Merchandise sales - 75,000 58,425
Cart, club and other rentals - 259,700 249,828
Miscellaneous - 101,125 46,991
Total operating revenues - 1,275,825 1,064,919
Operating expenses excluding depreciation
Golf operations 1,356,300 1,243,675 1,020,169
Cost of sales - pro shop 65,000 60,000 45,163
1,421,300 1,303,675 1,065,332
Capital assets capitalized - (40,000) -
Total operating expenses (excluding depreciation) 1,421,300 1,263,675 1,065,332
Nonoperating revenues (expenses)
Principal retirement (177,000) (175,814) (174,768)
Interest income - 3,000 683
Interest expense (8,000) (6,813) (7,857)
Other - 91,313 (130,830)
Net nonoperating revenues (expenses) (185,000) (88,314) (312,772)
Transfer in - 117,000 -
- 81 -
Village of Buffalo Grove, Illinois
Nonmajor Enterprise Funds
Combining Statement of Net Assets
December 31, 2007
Buffalo Grove Refuse
Golf Course Service Totals
Assets
Current
Cash and equivalents -$ 165,048 $ 165,048 $
Pro shop inventory 20,777 - 20,777
Total current assets 20,777 165,048 185,825
Noncurrent
Capital assets (net of accumulated depreciation)
Land 978,776 - 978,776
Buildings 471,768 - 471,768
Land improvements 44,612 - 44,612
Equipment 5,500 - 5,500
Total noncurrent assets 1,500,656 - 1,500,656
Total assets 1,521,433 $ 165,048 $ 1,686,481 $
Liabilities
Current
Accounts payable and accrued liabilities 59,867 $ 1,976 $ 61,843 $
Due to other funds 74,576 - 74,576
Total current liabilities 134,443 1,976 136,419
Net Assets
Invested in capital assets, net of related debt 1,500,656 - 1,500,656
Unrestricted (113,666) 163,072 49,406
Total net assets 1,386,990 $ 163,072 $ 1,550,062 $
- 82 -
Village of Buffalo Grove, Illinois
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Net Assets
Eight Months Ended December 31, 2007
Buffalo Grove Refuse
Golf Course Services Totals
Operating revenues
Daily greens fees and memberships 785,981 $ -$ 785,981 $
Merchandise sales 83,605 - 83,605
Cart, club and other rentals 142,467 - 142,467
Driving range fees 59,382 - 59,382
SWANCC user fees - 704,841 704,841
Miscellaneous 5,506 - 5,506
Total operating revenues 1,076,941 704,841 1,781,782
Operating expenses excluding depreciation
Golf operations 958,360 - 958,360
Cost of sales - pro shop 55,372 - 55,372
Refuse operations - 777,716 777,716
Total operating expenses excluding depreciation 1,013,732 777,716 1,791,448
Operating income (loss) before depreciation 63,209 (72,875) (9,666)
Depreciation 123,780 - 123,780
Operating loss (60,571) (72,875) (133,446)
Nonoperating revenues
Investment income 2,599 - 2,599
Loss before transfer (57,972) (72,875) (130,847)
Transfer out (65,160) - (65,160)
Change in net assets (123,132) (72,875) (196,007)
Net assets - beginning 1,510,122 235,947 1,746,069
Net assets - ending 1,386,990 $ 163,072 $ 1,550,062 $
- 83 -
Village of Buffalo Grove, Illinois
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
Eight Months Ended December 31, 2007
Buffalo Grove Refuse
Golf Course Services Totals
Cash flows from operating activities
Cash received for golf activities 1,001,561 $ -$ 1,001,561 $
Cash received for refuse services - 704,841 704,841
Payments to employees (587,049) - (587,049)
Payments to suppliers (427,874) (779,690) (1,207,564)
Net cash flows from operating actiivities (13,362) (74,849) (88,211)
Cash flows from noncapital financing activities
Transfers out (65,160) - (65,160)
Cash flows from investing activities
Interest received 2,599 - 2,599
Net (decrease) in cash and equivalents (75,923) (74,849) (150,772)
Cash and equivalents - beginning 75,923 239,897 315,820
Cash and equivalents - ending -$ 165,048 $ 165,048 $
Reconciliation of operating loss to net cash
flows from operating activities
Operating loss (60,571) $ (72,875) $ (133,446) $
Adjustments to reconcile operating loss to
net cash flows from operating activities
Depreciation 123,780 - 123,780
Changes in assets and liabilities
Inventory 1,095 - 1,095
Accounts payable and accrued liabilities 29,042 (1,974) 27,068
Due to other funds (31,327) - (31,327)
Deferred revenue (75,381) - (75,381)
Total adjustments 47,209 (1,974) 45,235
Net cash flows from operating activities (13,362) $ (74,849) $ (88,211) $
- 84 -
Village of Buffalo Grove, Illinois
Buffalo Grove Golf Course
Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses
and Transfers - Budget and Actual (Budgetary Basis)
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Operating revenues
Daily greens fees and memberships -$ 932,000 $ 785,981 $
Merchandise sales - 75,000 83,605
Cart, club and other rentals - 257,500 142,467
Driving range fees - 68,000 59,382
Miscellaneous - 34,663 5,506
Total operating revenues - 1,367,163 1,076,941
Operating expenses excluding depreciation
Golf operations 1,358,750 1,227,532 958,360
Cost of sales - pro shop 70,000 60,000 55,372
1,428,750 1,287,532 1,013,732
Less capital assets capitalized - (56,000) -
Total operating expenses (excluding depreciation) 1,428,750 1,231,532 1,013,732
Nonoperating revenues
Interest income - 3,700 2,599
Transfers out (115,200) (82,160) (65,160)
- 85 -
Village of Buffalo Grove, Illinois
Refuse Service Fund
Schedule of Operating Revenues and Operating Expenses
- Budget and Actual (Budgetary Basis)
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Operating revenues
SWANCC user fees -$ 660,800 $ 704,841 $
Operating expenses
Refuse operations 800,000 687,300 777,716
- 86 -
Village of Buffalo Grove, Illinois
Fiduciary Funds
Combining Statement of Fiduciary Net Assets - Pension Trust Funds
December 31, 2007
Police Firefighters'
Pension Pension Total
Assets
Cash and equivalents 9,816,035 $ 6,602,902 $ 16,418,937 $
Investments
Certificates of deposit - 2,518,000 2,518,000
U.S. government and agency obligations 16,815,524 6,506,207 23,321,731
Open-end mutual funds 6,234,653 9,498,603 15,733,256
Receivables
Pension contributions 1,594,227 1,334,734 2,928,961
Interest 9,325 60,069 69,394
Due from other funds 33,838 30,666 64,504
Total assets 34,503,602 26,551,181 61,054,783
Liabilities
Accounts payable - 1,710 1,710
Net Assets
Held in trust for pension benefits
(Schedules of funding progress for the
plans are presented in the required
supplementary information section.)34,503,602 $ 26,549,471 $ 61,053,073 $
- 87 -
Village of Buffalo Grove, Illinois
Fiduciary Funds
Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds
Eight Months Ended December 31, 2007
Police Firefighters'
Pension Pension Totals
Additions
Contributions
Employer 1,571,265 $ 1,342,531 $ 2,913,796 $
Participants 400,527 331,255 731,782
1,971,792 1,673,786 3,645,578
Investment income
Net appreciation in fair
value of investments 546,327 191,243 737,570
Interest income 830,037 410,717 1,240,754
Less investment expense (20,941) (29,233) (50,174)
1,355,423 572,727 1,928,150
Total additions 3,327,215 2,246,513 5,573,728
Deductions
Administration 6,223 30,860 37,083
Pension benefits and refunds 902,961 229,911 1,132,872
Total deductions 909,184 260,771 1,169,955
Change in net assets 2,418,031 1,985,742 4,403,773
Net assets - beginning 32,085,571 24,563,729 56,649,300
Net assets - ending 34,503,602 $ 26,549,471 $ 61,053,073 $
- 88 -
Village of Buffalo Grove, Illinois
Police Pension Fund
Schedule of Changes in Fiduciary Net Assets - Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Additions
Contributions
Employer -$ 1,268,151 $ 1,571,265 $
Participants - 385,223 400,527
- 1,653,374 1,971,792
Investment income
Net appreciation in fair value
of investments - 233,233 546,327
Interest income - 663,930 830,037
Less investment expense - - (20,941)
- 897,163 1,355,423
Total additions - 2,550,537 3,327,215
Deductions
Administration 100,000 75,000 6,223
Pension benefits and refunds 900,000 854,036 902,961
Total deductions 1,000,000 929,036 909,184
Change in net assets (1,000,000) $ 1,621,501 $ 2,418,031
Net assets - beginning 32,085,571
Net assets - ending 34,503,602 $
- 89 -
Village of Buffalo Grove, Illinois
Firefighters' Pension Fund
Schedule of Changes in Fiduciary Net Assets - Budget and Actual
Eight Months Ended December 31, 2007
Original/Final Final
Appropriations Budget Actual
Additions
Contributions
Employer -$ 1,164,971 $ 1,342,531 $
Participants - 356,419 331,255
- 1,521,390 1,673,786
Investment income
Net appreciation in fair value
of investments - 337,000 191,243
Interest income - 255,158 410,717
Less investment expense - - (29,233)
- 592,158 572,727
Total additions - 2,113,548 2,246,513
Deductions
Administration 65,000 43,500 30,860
Pension benefits and refunds 200,000 154,724 229,911
Total deductions 265,000 198,224 260,771
Change in net assets (265,000) $ 1,915,324 $ 1,985,742
Net assets - beginning 24,563,729
Net assets - ending 26,549,471 $
- 90 -
Village of Buffalo Grove, Illinois
Agency Fund - School and Park Donations
Statement of Changes in Assets and Liabilities
Eight Months Ended December 31, 2007
Balances Balances
May 1 Additions Deductions April 30
Assets
Cash and equivalents 334,145 $ 146,237 $ 57,241 $ 423,141 $
Liabilities
Due to other governments 334,145 $ 146,237 $ 57,241 $ 423,141 $
- 91 -
Village of Buffalo Grove, Illinois
Capital Assets Used in the Operation of Governmental Funds
Schedule of Capital Assets by Source
December 31, 2007
Assets
Governmental funds capital assets
Land 35,963,844 $
Construction in Progress 25,991
Buildings 20,698,710
Equipment and vehicles 10,043,535
Streets 19,040,719
Storm sewers 37,665,289
Total governmental funds capital assets 123,438,088 $
Investment in Governmental Funds Capital Assets By Source
Capital projects 4,301,522 $
From current revenues 5,039,163
Debt issuance 20,449,070
Contributions 93,648,333
Total governmental funds capital assets 123,438,088 $
- 92 -
Village of Buffalo Grove, Illinois
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
December 31, 2007
Construction in Equipment and Storm
Land Progress Buildings Vehicles Streets Sewers Total
General government 6,254,297 $ 25,991 $ 6,700,440 $ 1,243,351 $ -$ -$ 14,224,079 $
Public safety - - 9,652,448 4,987,447 - - 14,639,895
Public works 29,709,547 - 4,345,822 3,812,737 19,040,719 37,665,289 94,574,114
35,963,844 $ 25,991 $ 20,698,710 $ 10,043,535 $ 19,040,719 $ 37,665,289 $ 123,438,088 $
- 93 -
Village of Buffalo Grove, Illinois
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
Eight Months Ended December 31, 2007
Balance
Balance December 31,
May 1, 2007 Additions Deletions 2007
General government 14,177,275 $ 132,554 $ 85,750 $ 14,224,079 $
Public safety 14,285,447 354,448 - 14,639,895
Public works 94,510,332 257,023 193,241 94,574,114
122,973,054 $ 744,025 $ 278,991 $ 123,438,088 $
- 94 -
Statistical Section
This part of the Village of Buffalo Grove's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures,
and required supplementary information says about the Village's overall financial health.
Contents Page
Financial Trends 95 - 100
These schedules contain trend information to help the reader understand how the
Village's financial performance and well-being have changed over time.
Revenue Capacity 101 - 105
These schedules contain information to help the reader assess the factors affecting
the Village's ability to generate its property and sales taxes.
Debt Capacity 106 - 111
These schedules present information to help the reader assess the affordability of
the Village's current levels of outstanding debt and the Village's ability to issue additional
debt in the future.
Demographic and Economic Information 112 - 114
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Village's financial activities take place
and to help make comparisons over time and with other governments.
Operating Information 115 - 116
These schedules contain information about the Village's operations and resources to
help the reader understand how the Village's financial information relates to the
services the Village provides and the activities it performs.
Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year. The Village implemented Statement 34 in 2004;
schedules presenting government-wide information include information beginning in that year.
Village of Buffalo Grove, Illinois
Net Assets by Component
Last Five Years*
Dec. 31,
2004 2005 2006 2007 2007*
Governmental Activities
Invested in Capital Assets
Net of Related Debt 48,009,890$ 49,264,115$ 53,188,591$ 53,726,929$ 53,702,484$
Restricted 4,368,460 4,955,378 1,425,988 1,294,897 98,332
Unrestricted 34,708,597 34,551,091 37,786,827 35,512,486 27,184,985
Total Governmental Activities 87,086,947$ 88,770,584$ 92,401,406$ 90,534,312$ 80,985,801$
Business-type Activities
Invested in Capital Assets
Net of Related Debt 45,491,776$ 44,123,414$ 43,646,133$ 42,667,526$ 42,667,740$
Restricted - - - - -
Unrestricted 17,690,967 18,375,098 18,300,838 18,553,703 17,509,194
Total Business-type Activities 63,182,743$ 62,498,512$ 61,946,971$ 61,221,229$ 60,176,934$
Primary Government
Invested in Capital Assets
Net of Related Debt 93,501,666$ 93,387,529$ 96,834,724$ 96,394,455$ 96,370,224$
Restricted 4,368,460 4,955,378 1,425,988 1,294,897 98,332
Unrestricted 52,399,564 52,926,189 56,087,665 54,066,189 44,694,179
Total Primary Government 150,269,690$ 151,269,096$ 154,348,377$ 151,755,541$ 141,162,735$
Data Source
Audited Financial Statements
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
Fiscal Year
- 95 -
Village of Buffalo Grove, Illinois
Change in Net Assets
Last Five Years
Eight
Months Ended
2004 2005 2006 2007 2007*
Expenses
Governmental Activities
General Government 4,749,920$ 4,701,408$ 4,582,741$ 4,686,330$ 4,019,032$
Public Safety 16,396,186 16,822,265 18,137,721 18,951,546 15,324,061
Public Works 9,550,018 9,523,240 11,441,440 12,479,424 8,232,685
Interest 877,924 994,708 1,217,883 529,858 216,379
Total Governmental Activities Expenses 31,574,048 32,041,621 35,379,785 36,647,158 27,792,157
Business-type Activities
Water and Sewer 6,843,943 6,780,153 7,168,405 7,256,639 5,165,701
Refuse Service 936,573 971,980 956,915 1,024,248 777,716
Golf Courses 3,236,932 3,101,134 3,333,644 3,102,770 2,637,072
Total Business-type Activities Expenses 11,017,448 10,853,267 11,458,964 11,383,657 8,580,489
Total Primary Government Expenses 42,591,496$ 42,894,888$ 46,838,749$ 48,030,815$ 36,372,646$
Program Revenues
Governmental Activities
Charges for Services
General Government 1,802,120$ 1,683,585$ 2,048,850$ 1,880,714$ 1,139,242$
Public Safety 1,358,439 1,476,845 1,553,949 1,525,943 1,050,920
Public Works 192,193 - - - -
Operating Grants and Contributions 1,218,020 - - 1,532,557 950,383
Capital Grants and Contributions - - - - -
Total Governmental Activities Program Revenues 4,570,772 3,160,430 3,602,799 4,939,214 3,140,545
Business-type Activities
Charges for Services
Water and Sewer 6,322,045 6,279,172 7,688,143 6,694,051 4,799,193
Refuse Service 957,435 975,290 990,113 991,140 704,841
Golf Courses 2,592,370 2,637,717 2,567,759 2,323,919 2,141,860
Operating Grants and Contributions 1,106,103 1,915,746 1,444,395 - -
Capital Grants and Contributions 2,361,256 760,726 1,867,859 450,000 497,875
Total Business-type Activities Program Revenues 13,339,209 12,568,651 14,558,269 10,459,110 8,143,769
Total Primary Government Program Revenues 17,909,981$ 15,729,081$ 18,161,068$ 15,398,324$ 11,284,314$
Net (Expense) Revenue
Governmental Activites (27,003,276) (28,881,191) (31,776,986) (31,707,944) (24,651,612)
Business-type Activities 2,321,761 1,715,384 3,099,305 (924,547) (436,720)
Total Primary Government Net (Expense)
Revenue (24,681,515)$ (27,165,807)$ (28,677,681)$ (32,632,491)$ (25,088,332)$
(Continued)
Fiscal Year Ended
- 96 -
Village of Buffalo Grove, Illinois
Change in Net Assets (Continued)
Last Five Years
Eight
Months Ended
2004 2005 2006 2007 2007*
General Revenues and Other Changes in Net Assets
Governmental Activities
Taxes
Property 11,788,975$ 10,868,824$ 11,622,088$ 10,214,926$ 706,749$
Sales 6,349,520 7,960,163 8,800,041 8,619,267 5,741,981
Income and Use 3,001,889 3,433,471 3,855,616 4,280,237 2,725,204
Telecommunications 2,624,965 2,442,641 2,230,092 2,436,233 1,967,348
Property Transfer 1,253,906 1,212,292 1,346,946 980,213 600,379
Other 253,516 291,839 293,990 273,335 247,827
Investment Earnings 430,943 599,072 1,109,664 1,636,589 958,715
Miscellaneous 751,134 1,058,732 1,126,625 855,100 1,254,948
Transfers (203,740) 414,760 784,625 544,950 899,950
Proceeds from Insurance Pool - - 925,867 - -
Total Governmental Activities 26,251,108 28,281,794 32,095,554 29,840,850 15,103,101
Business-type Activities
Property 114,998 122,832 82,989 166,007 -
Investment Earnings 122,106 175,347 363,044 445,766 292,375
Miscellaneous - - - 131,982 -
Transfers 203,740 (414,760) (784,625) (544,950) (899,950)
Total Business-type Activities 440,844 (116,581) (338,592) 198,805 (607,575)
Total Primary Government 26,691,952$ 28,165,213$ 31,756,962$ 30,039,655$ 14,495,526$
Change in Net Assets
Governmental Activities (752,168)$ (599,397)$ 318,568$ (1,867,094)$ (9,548,511)$
Business-type Activities 2,762,605 1,598,803 2,760,713 (725,742) (1,044,295)
Total Primary Government Change in Net Assets 2,010,437$ 999,406$ 3,079,281$ (2,592,836)$ (10,592,806)$
Data Source
Audited Financial Statements
*Beginning May 1, 2007, the Village changed from an April 30 fiscal
year-end to a December 31 calendar year-end.
Fiscal Year
- 97 -
Village of Buffalo Grove, Illinois
Fund Balances of Governmental Funds
Last Ten Years
December 31,
1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*
General Fund
Reserved 1,102,522$ 1,600,275$ 1,658,164$ 1,623,983$ 1,155,677$ 1,339,393$ 1,524,130$ 1,787,884$ 1,846,137$ 1,797,186$
Unreserved 13,868,120 17,757,362 19,770,340 26,232,523 22,975,100 23,556,556 23,935,055 27,252,660 27,556,199 25,215,499
Total General Fund 14,970,642 19,357,637 21,428,504 27,856,506 24,130,777 24,895,949 25,459,185 29,040,544 29,402,336 27,012,685
All Other Governmental Funds
Reserved 1,550,831 3,221,595 3,891,877 4,560,473 4,238,926 4,311,770 4,543,605 499,743 486,946 98,332
Unreserved, reported in
Special Revenue Funds 724,767 1,109,270 1,347,688 239,505 988,142 953,672 1,496,628 1,813,406 1,942,258 1,148,979
Capital Project Funds 2,652,987 2,503,977 6,496,954 5,303,373 3,732,973 3,618,540 3,928,552 3,888,047 2,436,815 2,164,549
Total All Other Governmental Funds 4,928,585$ 6,834,842$ 11,736,519$ 10,103,351$ 8,960,041$ 8,883,982$ 9,968,785$ 6,201,196$ 4,866,019$ 3,411,860$
Data Source
Audited Financial Statements
*Beginning May 1, 2007, the Village changed from an April 30 fiscal
year-end to a December 31 calendar year-end.
Fiscal Year
- 98 -
Village of Buffalo Grove, Illinois
Changes in Fund Balances of Governmental Funds
Last Ten Years
Eight
Months Ended
1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*
Revenues
Property Taxes 8,893,874$ 9,554,904$ 10,184,512$ 10,333,002$ 9,874,681$ 12,463,170$ 11,715,601$ 11,245,966$ 10,402,764$ 5,797,846$
Other Taxes 10,004,017 6,067,090 14,341,241 15,174,770 13,207,726 13,483,796 15,340,405 16,526,685 16,589,285 11,282,739
Licenses and Permits 1,466,678 1,513,789 1,487,324 1,361,482 1,724,062 764,834 860,838 836,279 825,691 245,148
Intergovernmental 1,004,391 1,176,286 1,323,889 1,196,099 1,222,699 1,218,020 2,283,034 3,110,490 1,253,319 815,669
Fines and Forfeitures 1,006,245 1,084,188 1,180,755 1,557,281 914,637 1,200,967 1,476,845 1,553,949 1,525,943 1,050,918
Charges for Services 706,906 607,188 628,471 358,808 693,936 1,386,951 822,748 1,414,337 1,334,260 1,028,810
Investment Income 1,016,405 1,511,152 1,770,949 1,176,088 622,866 430,943 599,072 1,094,843 1,562,291 911,444
Miscellaneous 1,747,298 2,518,759 916,779 704,610 208,422 902,824 1,058,732 1,126,625 855,101 1,254,948
Total Revenues 25,845,814 24,033,356 31,833,920 31,862,140 28,469,029 31,851,505 34,157,275 36,909,174 34,348,654 22,387,522
Expenditures
General Government 4,730,835 4,740,084 5,174,278 7,064,048 6,431,336 4,044,058 4,326,708 4,276,374 4,955,659 3,455,213
Public Safety 13,482,021 14,035,837 15,316,592 15,762,282 15,931,648 16,411,219 16,390,156 17,521,978 18,185,545 14,211,380
Public Works 1,689,422 3,402,901 3,880,322 4,140,949 3,047,952 6,783,338 7,189,290 8,011,071 9,319,231 7,225,387
Capital Outlay 1,129,623 881,054 1,558,890 3,279,431 6,065,692 1,498,844 750,020 2,285,510 1,945,053 502,701
Debt Service
Principal 2,024,400 2,187,968 2,349,400 2,967,264 3,167,250 3,521,160 3,362,814 6,020,700 1,234,765 1,312,381
Interest 1,512,825 1,389,733 1,251,789 1,075,663 1,220,546 998,046 905,008 1,440,436 476,736 424,220
Other Charges - - 199,508 90,148 - - - - - -
Total Expenditures 24,569,126 26,637,577 29,730,779 34,379,785 35,864,424 33,256,665 32,923,996 39,556,069 36,116,989 27,131,282
Excess of Revenues over (under)
Expenditures 1,276,688 (2,604,221) 2,103,141 (2,517,645) (7,395,395) (1,405,160) 1,233,279 (2,646,895) (1,768,335) (4,743,760)
(Continued)
Fiscal Year
- 99 -
Village of Buffalo Grove, Illinois
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Years
Eight
Months Ended
1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*
Other financing Sources (Uses)
Transfers In 2,239,538 2,114,351 1,598,275 2,079,470 2,978,357 9,503,218 2,770,109 3,586,075 3,453,845 3,064,166
Transfers Out (1,968,419) (1,730,971) (1,157,275) (1,532,325) (2,468,213) (2,879,098) (2,355,349) (2,895,578) (2,658,895) (2,164,216)
Bonds Issued - - 10,023,604 2,376,284 2,600,000 - - - - -
Discount on Bonds Issued - - (5,417,342) (1,288,720) - - - - - -
Total Other Financing Sources (Uses) 271,119 383,380 5,047,262 1,634,709 3,110,144 6,624,120 414,760 690,497 794,950 899,950
Net Change in Fund Balances 1,547,807$ (2,220,841)$ 7,150,403$ (882,936)$ (4,285,251)$ 5,218,960$ 1,648,039$ (1,956,398)$ (973,385)$ (3,843,810)$
Debt Service as a Percentage of
Noncapital Expenditures 15.09% 13.89% 12.78% 13.00% 14.72% 14.23% 13.26% 20.02% 5.01% 6.52%
Data Source
Audited Financial Statements
*Beginning May 1, 2007, the Village changed from an April 30 fiscal
year-end to a December 31 calendar year-end.
Fiscal Year
- 100 -
Village of Buffalo Grove, Illinois
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Total Estimated Estimated
Total Taxable Direct Actual Actual
Levy Residential Commercial Industrial Other Assessed Tax Taxable Taxable
Year Property Property Property Property Value Rate Value Value
1998 794,595,331$ 222,130,074$ 8,131,229$ 597,680$ 1,025,454,314$ 0.6624 3,076,362,942$ 33.333%
1999 825,943,840 240,554,475 8,387,367 790,102 1,075,675,784 0.6866 3,227,027,352 33.333%
2000 851,160,676 248,834,328 8,311,573 602,232 1,108,908,809 0.6798 3,326,726,427 33.333%
2001 937,809,471 268,320,644 9,875,235 661,025 1,216,666,375 0.6643 3,649,999,125 33.333%
2002 1,021,183,719 287,519,681 10,015,898 652,970 1,319,372,268 0.6448 3,958,116,804 33.333%
2003 1,078,494,828 303,655,927 10,578,013 689,616 1,393,418,384 0.6539 4,180,255,152 33.333%
2004 1,155,398,804 325,308,649 11,332,296 738,791 1,492,778,540 0.6421 4,478,335,620 33.333%
2005 1,244,784,253 350,475,595 12,209,000 795,945 1,608,264,793 0.6330 4,824,794,379 33.333%
2006 1,298,156,901 365,502,946 12,732,486 830,074 1,677,222,407 0.6536 5,031,667,221 33.333%
2007* 1,389,336,411 391,175,019 13,626,786 888,377 1,795,026,593 0.6490 5,385,079,779 33.333%
Data Source
Office of the Cook and Lake County Clerks
Total Direct Tax Rated is weighted for both Cook and Lake Counties
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
- 101 -
2007* 2006 2005 2004 2003 2002 2001 2000 1999 1998
Lake County (1)
Village of Buffalo Grove 0.649 0.633 0.608 0.603 0.615 0.626 0.647 0.637 0.653 0.648
County, including Forest Preserve District 0.645 0.654 0.664 0.684 0.715 0.734 0.799 0.752 0.708 0.688
Combined school districts (District #96,
District #125 and District #532) 5.066 5.318 5.234 5.3 5.144 5.077 5.026 5.199 4.894 4.951
Buffalo Grove Park District 0.380 0.403 0.375 0.349 0.387 0.365 0.355 0.426 0.447 0.404
Indian Trails Public Library District 0.219 0.317 0.223 0.325 0.265 0.267 0.316 0.305 0.280 0.284
All other 0.092 0.094 0.093 0.12 0.101 0.105 0.043 0.152 0.115 0.121
Total 7.051 7.419 7.197 7.381 7.227 7.174 7.186 7.471 7.097 7.096
Percentage change - year-to-year -4.96% 3.08% (2.00%) 2.13% 0.74% (0.17%) (3.81%) 5.27 0.01 (1.21)
Cook County
Village of Buffalo Grove 0.731 0.726 0.785 0.807 0.714 0.728 0.855 0.818 0.718
County, including Forest Preserve District n/a 0.557 0.607 0.662 0.728 0.751 0.82 0.901 0.924 0.983
Metropolitan Water Reclamation District of
Greater Chicago n/a 0.284 0.315 0.347 0.361 0.371 0.401 0.415 0.419 0.444
Combined school districts (District #21,
District #214 and District #512) n/a 5.613 5.434 5.359 5.867 5.449 5.183 5.458 5.528 5.590
Buffalo Grove Park District n/a 0.455 0.435 0.457 0.498 0.407 0.422 0.486 0.386 0.445
Indian Trails Public Library District n/a 0.320 0.312 0.323 0.335 0.304 0.281 0.314 0.304 0.304
All other n/a 0.080 0.076 0.064 0.074 0.075 0.103 0.424 0.126 0.120
Total n/a 8.040 7.905 7.997 8.67 8.071 7.938 8.853 8.505 8.604
Percentage change - year-to-year n/a 1.71% (1.15%) (7.76%) 7.42% 1.68% (10.34%) 4.09% (1.15%) (3.68%)
Notes:
(1) Overlapping tax rates for Lake County represented only District #102 and Indian Trails Library
District as the majority of Buffalo Grove is within those districts. Overlapping rates for
District #96 available upon request.
n/a - not yet available.
Data Source
Cook County Tax Extension Office and Lake County Tax Extension Office
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
Village of Buffalo Grove, Illinois
Property Tax Rates - Direct and Overlapping Governments
Last Ten Levy Years
Comparative Tax Rates (Per $100 Assessed and Equalized Valuation)
- 102 -
Percentage Percentage
of Total of Total
Village Village
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Amli at Chevy Chase, LP 21,414,561$ 1 1.19% 13,810,599$ 2 1.05%
Chevy Chase Business Park 18,284,882 2 1.02% 13,030,188 3 0.99%
Hamilton Partners (1) 11,636,705 3 0.65% 15,029,138 1 1.14%
Millbrook 11,219,111 4 0.63%
Riverwalk South LLC (2) 9,226,843 5 0.51% 10,786,360 4 0.82%
Penobscot Management (3) 9,028,662 6 0.50% 8,264,390 6 0.63%
Rogers Center for Commerce (4) 8,803,462 7 0.49% 8,340,994 5 0.63%
First Chicago Management 7,242,819 8 0.40%
Strathmore Square 6,817,523 9 0.38%
Manufacturer's Life Insurance 6,365,026 10 0.35% 5,988,180 10 0.45%
LaSalle Bank
Inland Real Estate Group 7,193,965 7 0.55%
American National Bank 6,332,947 8 0.48%
Courtesy Corporation 6,013,044 9 0.46%
110,039,594$ 6.13% 94,789,805$ 7.18%
Data Source
Office of the County Clerk of Cook and Lake Counties
Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the
taxpayers contain multiple parcels, and it is possible that some parcels and their valuations have
been overlooked.
* 2002 is the most recent information available
(1) Previously HP Riverwalk II, LLC
(2) Previously Marack and Associates
(3) Previously The Wheatlands LLC
(4) Previously American National Bank and Trust of Chicago
Village of Buffalo Grove, Illinois
Principal Property Taxpayers
Current Levy Year and Five Years Ago
2007 2002*
- 103 -
Village of Buffalo Grove, Illinois
Property Tax Levies and Collections
Last Ten Levy Years
Levy Percentage Percentage
Year Tax Levied Amount of Levy Tax Levied Amount of Levy Collected % of Levy
1997 5,198,349$ 5,224,401$ 100.50% 1,487,166$ 1,468,828$ 98.77% 6,693,229$ 100.12%
1998 5,276,869 5,283,751 100.13% 1,516,118 1,511,325 99.68% 6,795,076 100.03%
1999 5,595,209 5,602,218 100.13% 1,790,022 1,798,926 100.50% 7,401,144 100.22%
2000 5,676,190 5,671,695 99.92% 1,862,422 1,850,419 99.36% 7,522,114 99.78%
2001 6,188,984 6,191,084 100.03% 1,893,528 1,891,611 99.90% 8,082,695 100.00%
2002 6,496,642 6,493,138 99.95% 2,010,410 1,984,883 98.73% 8,478,021 99.66%
2003 6,833,964 6,833,112 99.99% 2,277,392 2,270,357 99.69% 9,103,469 99.91%
2004 7,068,040 7,063,323 99.93% 2,516,966 2,498,742 99.28% 9,562,065 99.76%
2005 7,690,488 7,692,967 100.03% 2,492,952 2,474,867 99.27% 10,167,834 99.85%
2006 8,389,127 8,383,359 99.93% 2,572,578 2,512,709 97.67% 10,896,068 99.40%
Data Source
Office of the County Clerk
Note: Property is assessed at 33 1/3 % of actual value.
Property is assessed on the following basis: Cook County - Triennial;
Lake County- Quadrennial (minimum)
Collections for prior tax years are immaterial.
2007 information not yet available
Village Totals
Fiscal Year after the Levy Fiscal Year after the Levy
Lake County Cook County
Collected within the Collected within the
- 104 -
Village of Buffalo Grove, Illinois
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category
Last Ten Calendar Years
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
General Merchandise 16,383$ -$ -$ -$ -$ -$ 62,250$ 82,549$ 67,729$ -$
Food 117,647,166 138,724,670 148,777,253 146,141,288 145,193,388 140,042,319 141,346,293 147,684,295 160,187,651 150,560,818
Drinking and Eating Places 32,967,819 34,495,205 37,594,368 37,381,417 36,725,244 41,488,379 47,428,310 46,440,601 46,444,281 219,453,629
Apparel 8,508,479 8,671,696 6,320,494 3,447,499 3,201,048 3,169,094 4,621,028 4,996,173 5,897,025 n/a
Furniture & H.H. & Radio 50,288,200 36,588,659 32,527,349 33,263,860 27,018,297 30,352,130 26,317,838 26,730,898 26,546,026 n/a
Lumber, Building, Hardware 5,423,735 2,954,696 2,870,374 150,644,357 147,666,342 159,252,873 184,636,466 183,375,943 166,316,199 n/a
Automobile and Filling Stations 120,647,621 126,276,368 119,146,464 115,418,956 109,257,662 98,945,202 111,922,940 123,378,359 101,712,942 n/a
Drugs and Miscellaneous Retail 171,432,462 172,479,254 194,216,630 173,255,387 160,790,602 167,062,615 164,536,993 182,557,766 183,432,161 n/a
Agriculture and All Others 74,547,563 124,504,324 108,059,330 119,436,015 87,110,237 74,872,198 71,358,855 106,281,144 88,338,421 n/a
Manufacturers 8,213,200 3,733,440 6,727,536 9,940,578 7,390,989 10,840,624 27,396,682 17,084,473 20,987,583 n/a
Total 589,692,628$ 648,428,312$ 656,239,798$ 788,929,357$ 724,353,809$ 726,025,434$ 779,627,655$ 838,612,201$ 799,930,018$ 370,014,447$
Total Number of Payers 1,368 1,169 1,101 1,094 1,174 1,213 1,189 1,271 1,311 N/A
Village direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Data Source
Illinois Department of Revenue
Cook and Lake Counties
N/A - not yet available.
Calendar Year
- 105 -
Village of Buffalo Grove, Illinois
Direct and Overlapping Sales Tax Rates
Last Ten Years
Village
Direct State
Year Rate Rate
1998 0.50% 6.50%
1999 0.50% 6.50%
2000 0.50% 6.50%
2001 0.50% 6.50%
2002 0.50% 6.50%
2003 0.50% 6.50%
2004 1.00% 6.50%
2005 1.00% 6.50%
2006 1.00% 6.50%
2007* (April 30 and December 31) 1.00% 6.50%
Data Source
Village and County Records
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
- 106 -
Ratios of Outstanding Debt by Type
Last Ten Years
Governmental Activities Business-Type Activities Ratio of Total Total
General Tax Special General Total Outstanding Debt Outstanding
Year Obligation Increment Service Area Obligation Revenue Primary To Equalized Debt Per
Ended* Bonds Financing Bonds Bonds Bonds Bonds Government Assessed Valuation*Capita(1)
4/30/99 8,638,384$ 8,300,000$ 9,675,000$ 4,056,648$ -$ 30,670,032$ 2.99% 709.13$
4/30/00 7,965,384 7,885,000 8,575,000 2,604,616 - 27,030,000 2.51% 621.38
4/30/01 12,050,984 7,360,000 7,390,000 2,019,016 - 28,820,000 2.60% 671.65
4/30/02 12,374,070 6,490,000 6,045,000 1,710,930 - 26,620,000 2.19% 619.07
4/30/03 14,201,820 5,505,000 4,635,000 1,367,443 - 25,709,263 1.95% 596.50
4/30/04 13,530,660 4,150,000 3,140,000 1,034,647 - 21,855,307 1.57% 508.70
4/30/05 12,597,846 3,400,000 1,460,000 689,303 - 18,147,149 1.22% 420.12
4/30/06 11,437,146 - - 345,003 - 11,782,149 0.73% 266.14
4/30/07 10,202,381 - - 174,768 - 10,377,149 0.62% 233.19
12/31/07* 8,890,000 - - - - 8,890,000 0.50% 198.93
Note: Details of the Village's outstanding debt can be found in the notes to the financial statements.
(1) See the Schedule of Demographic and Economic Statistics on page 112 for equalized assessed valuation of property and population data.
Personal income information is not available.
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
December 31, 2007 represents an eight-month period.
Village of Buffalo Grove, Illinois
- 107 -
Village of Buffalo Grove, Illinois
Ratios of General Bonded Debt Outstanding
Last Ten Years
Percentage of
Less: Amounts Estimated
General Available Actual Taxable
Year Obligation In Debt Value of Per
Ended* Bonds Service Fund Total Property(1) Capita
4/30/99 8,638,352 $ -$ 8,638,352 $ 0.84% 199.73 $
4/30/00 7,965,384 - 7,965,384 0.74% 183.11
4/30/01 12,050,984 - 12,050,984 1.09% 280.85
4/30/02 14,085,000 - 14,085,000 1.16% 327.56
4/30/03 13,530,660 - 13,530,660 1.03% 313.94
4/30/04 13,530,660 - 13,530,660 0.97% 314.94
4/30/05 12,597,846 - 12,597,846 0.84% 291.65
4/30/06 11,780,000 499,743 11,280,257 0.70% 254.81
4/30/07 10,202,381 486,946 9,715,435 0.58% 218.32
12/31/07* 8,890,000 98,332 8,791,668 0.49% 196.73
Note: Details of the Village's outstanding debt can be found in the notes to the financial statements.
(1) See the Schedule of Assessed Value and estimated Actual Value of Taxable Property
for property value data.
Per Capita:
1 - Special Census
2 - Federal Census
3 - Estimate
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar
year-end. December 31, 2007 represents an eight-month period.
- 108 -
Village of Buffalo Grove, Illinois
Direct and Overlapping Govermental Activities Debt
As of December 31, 2007
Percentage Village of
Debt Applicable Buffalo Grove
Gross to the Village of Share
Governmental unit Debt Buffalo Grove* of Debt
Overlapping Debt
School districts:
Cook County School District #21 45,625,929 $ 16.61%7,578,467 $
Kildeer Countryside Community Consolidated #96 9,100,000 40.14%3,652,740
Aptakisic-Tripp Community Consolidated #102 6,120,000 75.62%4,627,944
Lincolnshire - Half Day District #103 5,975,000 10.76%642,910
Adlai E. Stevenson H.S. District #125 34,012,053 37.36%12,706,903
Wheeling Township H.S. District #214 26,639,614 3.77%1,004,313
Harper Community College #512 56,385,000 1.71%964,184
College of Lake County #532 9,772,475 5.04%492,533
Total School Districts 193,630,071 31,669,993
Other than school districts:
Lake County 3,585,000 4.79%171,722
Lake County Forest Preserve 206,524,439 4.79%9,892,521
Cook County 2,960,875,000 0.24%7,106,100
Cook County Forest Preserve 121,270,000 0.24%291,048
Metropolitan Water Reclaimation District 1,453,547,772 0.25%3,633,869
Indian Trails Library District 1,500,000 48.05%720,750
Buffalo Grove Park District 17,280,000 95.86%16,564,608
Wheeling Park District 4,200,000 6.55%275,100
Total Other Than School Activities 4,768,782,211 38,655,718
Total Overlapping Debt 4,962,412,282 70,325,711
Total Village of Buffalo Grove Direct Debt 8,890,000 100%8,890,000
Total direct and overlapping debt 4,971,302,282 $ 79,215,711 $
* Determined by ratio of assessed valuation of property subject to taxation in the Village of
Buffalo Grove to valuation of property subject to taxation in overlapping unit.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the
Village of Buffalo Grove. This process recognizes that, when considering the government's ability to issue and repay long-term debt, th
entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government
- 109 -
Village of Buffalo Grove, Illinois
Schedule of Legal Debt Margin
December 31, 2007
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as set by the General
Assembly.
- 110 -
Village of Buffalo Grove, Illinois
Pledged Revenue Coverage
Last Ten Fiscal Years
Water Revenue Bonds
Water
Charges Less: Net
Fiscal and Operating Available Debt Service
Year Other Expenses Revenue Principal Interest Coverage
1998 7,278,896$ 5,873,448$ 1,405,448$ 905,000$ 329,288$ 1.14
1999 6,997,094 5,194,569 1,802,525 4,270,000 227,086 0.40
Note: All revenue bonds were fully retired by April 30, 1999.
Details of the Village's outstanding debt can be found in the notes to the financial statements.
Water Charges and Other includes investment earnings but excludes sale of property and grants.
Operating expenses do not include debt service, depreciation or reserve requirements.
- 111 -
Equalized
Assessed Per
Fiscal Value Capita Unemployment
Year Population (EAV) EAV Rate
4/30/99 43,250 (E) 1,025,454,314$ 23,710$ 4.10%
4/30/00 43,500 (E) 1,075,675,784 24,728 4.00%
4/30/01 42,909 (A) 1,108,908,809 25,843 4.60%
4/30/02 43,000 (E) 1,216,666,375 28,295 4.50%
4/30/03 43,100 (E) 1,319,372,268 30,612 4.70%
4/30/04 42,963 (A) 1,393,418,384 32,433 5.20%
4/30/05 43,195 (A) 1,492,778,540 34,559 5.60%
4/30/06 44,270 (E) 1,608,264,793 36,329 4.80%
4/30/07 44,500 (E) 1,677,222,407 37,690 3.20%
12/31/07* 44,688 (E) 1,795,026,593 40,168 3.70%
(A) Actual
(E) Estimate
Data Sources
(1) U.S. Department of Labor, Bureau of Labor Statistics
*Beginning May 1, 2007, the Village changed from an April 30 fiscal
year-end to a December 31 calendar year-end.
Village of Buffalo Grove, Illinois
Demographic and Economic Information
Last Ten Years
- 112 -
% of % of
Total Village Total Village
Employer Employees Rank Population Employees Rank Population
Allstate Insurance Company 1323 1 2.97% 1310 1 3.05%
Siemens Building Technologies 1030 2 2.31% 1015 2 2.36%
Rexam (1) 756 3 1.70% 590 3 1.37%
Dominick's Finer Foods (three locations) 483 4 1.09% 480 4 1.12%
Plexus Corporation 400 5 0.90% 400 5 0.93%
Harris Trust & Savings Bank 350 6 0.79% 345 6 0.80%
Federal Express 300 7 0.67% 300 7 0.70%
RG Ray 250 8 0.56% 245 8 0.57%
Village of Buffalo Grove 245 9 0.55% 239 9 0.56%
Automed Technologies 224 10 0.50% - - -
ASAP Software - - - 200 10 0.47%
44500 43000
Data Source
Village Records
earliest available records
(1) Prior to 2005 - Courtesy Corporation
* Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
Village of Buffalo Grove, Illinois
Principal Employers
Current Year and Five Years Ago*
2007 2002
- 113 -
December 31,
Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*
General Government
Administration
Village Manager's Office 5 5.5 5.5 5.5 5 4.5 4.5 4.5 4.5 5
Planning 22222221.51.51.5
Information Technology 2.5 33333333.53.5
Finance 10 10 10 10 10 10 9.5 9.5 9.5 9.5
Building and Zoning 11 11 11 11 10.5 10.5 10.5 10.5 10.5 10.5
Public Safety
Police
Full-time Police Officers 75.5 75.5 76.5 76.5 76.5 70 71 70 70 71
Community Service Officers 4.5 4.5 3.5 3.5 33333 3
Civilians 20 20 22 24 25 22 22.5 22 22.5 21.5
Fire
Full-time firefighters/paramedics 61 61 61 62 62 62 62 62 62 61
Civilians 5 6 6.5 665556 6
Public Works
Public Works Administration 16 16 16 15.5 15.5 15.5 15.5 15.5 14.5 14.5
Streets / Forestry 23 23 23 23 21 21 20 19 20 20
Water and Sewer 11 13 14 13 12 11 10 13 14 14
Central Garage 555555554 5
Building Maintenance 444444444 4
Recreation
Administration 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5
Grounds Maintenance 15 15 15 15 15 15 15 15 15 15
Seasonal 34 34 34 34 34 34 34 34 34 34
Total 318 322 325.5 326.5 323 311 310 310 312 312.5
Data Source
Village Finance Department
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
Full-Time-Equivalent Employees as of April 30
Village of Buffalo Grove, Illinois
Full-Time Equivalent Employees
Last Ten Years
- 114 -
December 31,
Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*
General Government
Building & Zoning
Building permits issued 1552 1624 1390 1721 2,618 2,099 1,843 2,011 1,282 1,695
Building inspections conducted N/A N/A N/A N/A 16,429 11,597 12,058 14,744 13,416 21,383
Property maintenance N/A N/A N/A N/A 1,343 3,057 3,260 4,530 3,448 2,962
inspections conducted
Public Safety
Police
Physical arrests 3,643 3,599 3,146 3,076 2,878 2,673 2,609 2,489 N/A 2,143
Parking violations 5,251 5,495 4,153 5,704 4,539 4,990 5,598 4,751 N/A 4,721
Traffic violations 13,324 12,949 10,108 10,240 10,686 10,181 12,312 12,010 N/A 12,010
DUI Arrests 911 832 502 504 575 452 440 457 N/A 482
Vehicle Crashes 1,874 1,968 1,985 1,805 1,792 1,842 1,719 1,692 N/A 1,555
Fire
Ambulance Calls / EMS 2,249 2,285 2,391 2,454 2,474 2,622 2,610 2,668 2,583 2,943
Service Call 875 810 760 713 754 682 645 614 684 678
Fire Call 797 813 902 689 735 788 819 810 788 858
Auto Aid/Mutual Aid 586 537 538 547 544 403 360 315 406 379
Public Works
Streets
Street resurfacing (miles)3.05 5.32 6.20 3.42 5.53 6.95 8.59 8.25 8.30 8.23
Parks and Recreation
Park sites 46 46 46 46 46 46 46 46 46 46
Golf Courses - Combined
Golf Rounds Played - Paid 69,777 70,144 62,394 63,317 62,241 60,275 61,937 60,678 61,005 60,258
Water
New Connections (tap-ons) 84 62 24 48 11 66 16 6 98 33
Average daily consumption* 4.781 5.326 4.695 4.729 4.915 4.733 4.668 5.094 4.613 4.347
Peak daily consumption* 9.552 9.944 7.769 10.238 10.733 9.024 8.577 9.791 8.882 8.393
* (millions of gallons)
N/A - not available
Data Source
Various Village departments
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December calendar year-end.
Village of Buffalo Grove, Illinois
Operating Indicators
Last Ten Years
Fiscal Year
- 115 -
December 31,
Function/Program 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007*
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 36 36 36 35 35 35 35 35 35 36
Fire
Stations 3 3 3 3 3 3 3 3 3 3
Fire Appartus 14 14 15 20 20 20 20 20 20 20
Public Works
Streets
Streets (miles) 117.50 117.50 117.50 117.50 117.50 117.50 117.50 117.50 117.50 117.50
Streetlights 2,374 2,374 2,374 2,374 2,374 2,374 2,374 2,374 2,374 2,614
Water
Water mains (miles) 178.36 178.36 178.36 178.36 178.36 178.36 178.36 178.36 178.36 179.57
Fire hydrants 2,449 2,449 2,449 2,449 2,449 2,449 2,449 2,449 2,449 2,468
Wastewater
Sanitary sewers (miles) 138.72 138.72 138.72 138.72 138.72 138.72 138.72 138.72 138.72 139.12
Data Source
Various Village departments
*Beginning May 1, 2007, the Village changed from an April 30 fiscal year-end to a December 31 calendar year-end.
Village of Buffalo Grove, Illinois
Capital Asset Statistics
Last Ten Years
Fiscal Year
- 116 -