2008 CAFR
Village of Buffalo Grove,
Illinois
Comprehensive Annual Financial Report
For the Year Ended December 31, 2008
VILLAGE OF BUFFALO GROVE, ILLINOIS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2008
Prepared by:
Department of Finance and General Services Department
Scott Anderson
Director of Finance and General Services
Katie Skibbe
Assistant Director of Finance
INTRODUCTORY SECTION
Village 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 - 14
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Assets 15 - 16
Statement of Activities 17 - 18
Fund Financial Statements
Balance Sheet - Governmental Funds 19
Reconciliation of the Balance Sheet - Governmental Funds to
the Statement of Net Assets 20
Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds 21
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 22
Statement of Net Assets - Proprietary Funds 23 - 24
Statement of Revenues, Expenses, and Changes in Net Assets -
Proprietary Funds 25
Statement of Cash Flows - Proprietary Funds 26 - 27
Statement of Fiduciary Net Assets 28
Statement of Changes in Fiduciary Net Assets - Pension Trust Funds 29
Notes to Financial Statements 30 - 66
Required Supplementary Information (Unaudited)
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund (Budgetary Basis) 67
Analysis of Funding Progress – Pension Benefits
Illinois Municipal Retirement Fund 68
Police Pension Fund 68
Firefighters' Pension Fund 68
Employer Contributions – Pension Benefits
Illinois Municipal Retirement Fund 69
Police Pension Fund 69
Firefighters' Pension Fund 69
Other Post-Employment Benefits
Analysis of Funding Progress 70
Employer Contributions 70
Note to Required Supplementary Information 71
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 72
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds 73
Combining Balance Sheet - Nonmajor Special Revenue Funds 74
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances (Deficit) - Nonmajor Special Revenue Funds 75
Schedule of Revenues, Expenditures and Changes in Fund Balance (Deficit) -
Budget and Actual - Nonmajor Special Revenue Funds
Illinois Municipal Retirement Fund 76
Motor Fuel Tax Fund 77
Parking Lot Fund 78
Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Debt Service Fund – Facilities Development Fund 79
Combining Balance Sheet - Nonmajor Capital Projects Funds 80
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances (Deficit) - Nonmajor Capital Projects Funds 81
Schedule of Revenues, Expenditures, and Changes in
Fund Balance (Deficit) - Budget and Actual - Nonmajor Capital Projects Funds
Street Maintenance Fund 82
Facilities Development Fund 83
Proprietary Funds
Schedule of Operating and Nonoperating Revenues,
Operating and Nonoperating Expenses and Transfers - Budget and Actual
(Budgetary Basis)
Waterworks and Sewerage Fund 84
Arboretum Golf Course 85
Combining Statement of Net Assets - Nonmajor Enterprise Funds 86
Combining Statement of Revenues, Expenses and Changes in Net Assets
- Nonmajor Enterprise Funds 87
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 88
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 89
Schedule of Operating Revenues and Operating Expenses - Budget
and Actual (Budgetary Basis) - Refuse Service Fund 90
Fiduciary Funds
Combining Statement of Fiduciary Net Assets - Pension Trust Funds 91
Combining Statement of Changes in Fiduciary Net Assets -
Pension Trust Funds 92
Schedule of Changes in Fiduciary Net Assets - Budget and Actual
Police Pension Fund 93
Firefighters' Pension Fund 94
Statement of Changes in Assets and Liabilities - Agency Fund -
School and Park Donations 95
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source 96
Schedule by Function and Activity 97
Schedule of Changes by Function and Activity 98
Statistical Section (Unaudited)
Net Assets by Component – Last Six Fiscal Years 99
Change in Net Assets – Last Six Fiscal Years 100 - 101
Fund Balances of Governmental Funds – Last Ten Fiscal Years 102
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 103 – 104
Assessed Value and Actual Value of Taxable Property – Last Ten Levy Years 105
Property Tax Rates – Direct and Overlapping Governments – Last Ten Levy Years 106
Principal Property Taxpayers – Current Levy Year and Six Years Ago 107
Property Tax Levies and Collections – Last Ten Levy Years 108
Sales Tax Revenue and Number of Principal Payers – Revenue by Category –
Last Ten Calendar Years 109
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 110
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 111
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 112
Direct and Overlapping Governmental Activities Debt 113
Schedule of Legal Debt Margin 114
Demographic and Economic Information – Last Ten Fiscal Years 115
Principal Employers – Current and Six Years Ago 116
Full-Time Equivalent Employees – Last Ten Fiscal Years 117
Operating Indicators – Last Ten Fiscal Years 118
Capital Asset Statistics – Last Ten Fiscal Years 119
Village of Buffalo Grove, Illinois
Officers and Officials
Year Ended December 31, 2008
iv
Elliott Hartstein Janet M. Sirabian
Village President Village Clerk
Village Trustees
Jeffrey Berman Lisa Stone
Jeffrey Braiman Beverly Sussman
DeAnn Glover Steve Trilling
Joseph Tenerelli
Treasurer
* * * * * * * * * *
William H. Brimm
Village Manager
Scott Anderson Carmen Molinaro
Director of Finance and General Director of Golf Operations
Services
Steve S. Balinski Ghida Neukirch
Chief of Police Deputy Village Manager
Carol Berman Robert Pfeil
Deputy Building Commissioner Village Planner
Gregory P. Boysen, P.E. William G. Raysa
Director of Public Works Village Attorney
Robert Giddens Brian Sheehan
Director of Management Information Systems Deputy Building Commissioner
Richard Kunekler, P.E. Katie Skibbe
Village Engineer Assistant Finance Director
Arthur Malinowski Terrence Vavra
Director of Human Resources Fire Chief
vi
facilities and programs, and transportation options. Regional transportation can be accessed through the Tri-State
Tollway (I-294) that provides a direct connection to Chicago or Milwaukee, Route 53 just two miles to the west
provides access to I-290 and I-355, the METRA North Central Service commuter line, or PACE, the suburban bus
division of the Regional Transportation Authority. Air transportation is available through O’Hare International Airport,
located just twenty miles from the Village, and Chicago Executive Airport located in the neighboring community of
Wheeling.
The Village of Buffalo Grove is empowered to levy a property tax on real property located within its boundaries. It is
also empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The
Village became a home rule unit by referendum on July 1, 1980, that gives it additional powers to tax and regulate in
ways not specifically granted, or prohibited, by the Illinois Constitution. The Village operates under a Council/Manager
form of government. Policy making and legislative authority are vested with the Village Board, which consists of a
President and a six member Board of Trustees. The Village Board is responsible, among other things, for passing
ordinances and resolutions, adopting the annual budget, appointing committees, and hiring the Village’s Manager and
Attorney. The Village Manager is responsible for carrying out the policies, ordinances and resolutions of the Village
Board, for overseeing the day-to-day operations of the Village, and for appointing the directors of the Village’s
departments. The Board is elected on a non-partisan basis. Board members are elected to four-year staggered terms
with three board members elected every two years. The President and Clerk are elected to four-year terms. All
elections are at large.
Financial Planning & Control
The annual budget serves as the foundation for the Village’s financial planning and as a management control
document. All departments of the Village are required to submit their budget requests to the Village Manager on or
before October 31st of each year. The Village Manager uses these requests as the starting point for developing a
proposed budget. The proposed budget is then presented before the Village Board. Legal spending thresholds are
established through an Appropriation Ordinance. The Village Board is required to hold a public hearing on the
Appropriation Ordinance and must adopt a final budget no later than December 31st of each year. The appropriated
budget is prepared by fund, and department (e.g., police). Department directors may make transfers of appropriations
within a department. Transfers of appropriations between departments and fund/account groups, however, require the
special approval of the Village Board.
Local Economy
The Village has experienced the impacts of a slowed economy similar to what is being faced at the national and
regional levels. The Village has a varied light industrial and manufacturing base that adds to the relative stability of
the unemployment rate as measured against state and national trends. Major industries within, or in close proximity
to, the Village’s boundaries include technology manufacturers, Research and Development firms, financial and
insurance institutions, and warehouse and distribution facilities. The area has grown substantially over the last few
decades but there is now relatively little land available for development.
The state shared sales tax combined with the home rule sales tax represents a significant portion of the Corporate
Fund revenue profile. That being said, the Village is proactive in protecting and promoting its retail tax base. The
Village has implemented a business retention program and is diligent about attracting new business to the area and
will work with property owners to market their sites to brokers, retailers, developers, and others in the real estate field.
During the course of the year, the Village worked with one hundred twenty-five new businesses to either locate to the
village or expand their current operations within the Village.
Long-term Financial Planning
Transportation-related projects represent some of the major initiatives over the next five years. It is estimated that $15
million potentially will be allocated to 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 with the FY 2010 budget in order to maintain the
current level of maintenance standards.
vii
Two significant facility projects are contemplated in the next five years including expansions of the Public Service
Center and Fire Station #26.
One project is being developed that would address storm water management to mitigate concerns regarding
residential property flooding.
Major Initiatives
The Village staff, under the directives set forth by the Village Manager and policies adopted by the Village Board,
have been involved in a variety of projects throughout the year. The most significant of these projects are detailed
below
Late in 2008, the Village Board unanimously approved the update of the Village’s 1998 Comprehensive Plan. The
Plan serves as the principal policy and planning document guiding land use and development within the Village and
areas adjacent to its boundaries. The Comprehensive Plan is available for public review on the Village’s web site at
www.vbg.org.
Implementation of an emergency notification system. The Village has partnered with a firm to enhance
communications to provide an expeditious method of emergency notifications throughout the community.
In conjunction with the notification system, the Village has relocated its Emergency Operations Center to better
coordinate service efforts during a crisis.
Approximately $2.9 million was spent on the Motor Fuel Tax roadway maintenance program.
A number of developments or initiatives have been approved or are under way throughout the community in year
2008, including but not limited to the following:
Aptakisic Creek Corporate Park. In October, 2007, the Village’s Corporate Authorities approved the development of
the Aptakisic Creek Corporate Park in Buffalo Grove. The Park is located on the south side of Aptakisic Road, east of
the railroad tracks. The overall site area is 28.7 acres, and includes maintaining the existing industrial building
(173,000 sq. ft.), and construction of two new industrial buildings (building #1, 187,598 sq. ft. and building #2, 146,250
sq. ft.). The existing industrial building was immediately leased to Prime Source Building Products. The balance of the
project is currently being marketed for industrial uses.
Land & Lakes. In June 2008, the Village’s Corporate Authorities approved the annexation of the Land & Lakes
property. The property includes three parcels: East Parcel, West Frontage Parcel and West Rear Parcel along
Milwaukee Avenue north of Busch Parkway. The East Parcel is 7.34 acres and was zoned Industrial with a special
use for a landscape transfer facility. The West Frontage is 17.4 acres, and the West Rear is 41 acres. These parcels
were zoned B-3 for commercial development. The conceptual plan depicts a full service hotel, and approximately
446,000 square feet of retail. The Village and developer, Land & Lakes, will provide for a high–quality commercial
development, including a unified architectural design for the buildings, an attractive sign package, and amenity
features such as central open space, extensive landscaping, and a network of interior sidewalks and paths linking
various portions of the Land & Lakes property and immediate adjacent properties to the north and south.
viii
Buffalo Grove Auto Dealers. The Village has been working closely with the owners of the three auto dealerships in
Buffalo Grove. Arlington Toyota operates on 5.28 acres and the owner has plans to relocate to a more than 12-acre
parcel in another community. The Village is coordinating with the property owners given the market of the auto
industry to either retain the properties for auto sales purposes, or plan for the highest and best use of the properties.
The entire planning area is 15.94 acres.
Waterbury Place – Edward R. James is continues to develop 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.
Berenesa Plaza. In September 2007, the Village’s Corporate Authorities approved a Preliminary Plan for the north
and southwest corners of Milwaukee Avenue & Deerfield Parkway. In 2008, the Village continued to work with the
property owner and developer to promote the property, and progress with development of the Plan, conducting site
logistics and obtaining permits from the county and state. The Preliminary Plan depicts ten buildings on the north
parcel (17.95 acres) including a hotel, a two-story office building, five restaurant buildings, and three retail buildings.
For the south tract (6.22 acres), the plans show an office building, a drug store, a bank and a retail building. A hotel is
planned on the north parcel.
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, were implemented and continue 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 and disabled 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
December 31, 2007 is 63.5% of the actuarial accrued liabilities for the Police Pension Fund and 67.7% of the
Firefighters Pension Fund.
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.
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
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 year ended December 31, 2008, 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, 2008, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
The required supplementary information which includes management’s discussion and analysis (pages 3 – 14),
budgetary comparison information and pension and other post-employment related information (pages 67 - 71) 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.
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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 72 – 98), 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 24, 2009
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis
December 31, 2008
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 fiscal
year ended December 31, 2008. This 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, 2008 by $135.3 million (net assets). Net
assets for governmental activities account for $76.9 million or 57% of the total and business-type activities
account for $58.4 million. Of this amount, $40.3 million is unrestricted and may be used to meet the Village’s
ongoing obligations.
• The Village’s net assets decreased by $5.9 million (or 4%) during the fiscal year ending December 31, 2008.
The governmental net assets decreased by $4.1 million and the business-type activities net assets
decreased by $1.8 million.
• As of December 31, 2008, the Village of Buffalo Grove’s governmental funds reported combined ending fund
balances of $27.0 million, a decrease of $3.0 million from the prior year. Of this amount, $13.7 million was
unreserved and undesignated.
• Of the $3 million dollar deficit within the general fund, $2.3 million was used to support capital projects and
roadway improvements within the Village.
• The unreserved, undesignated fund balance for the General Fund represented 34% 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 purpose of presenting both perspectives is to provide the user of the document an expanded basis for
comparison (year to year or government to government) and enhance the accountability of the Village. 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 15-18) 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 reports information on all of the Village’s assets and liabilities, with the difference being
reported as net assets. Changing of the net asset total over time can be one useful indicator in assessing the
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
financial position of the Village. The Statement of Activities demonstrates how the net assets changed during the
most recent fiscal period.
Both of the government-wide financial statements 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).
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, prepared food and beverage tax, and telecommunication tax finances the majority of these services. The
Business-type Activities reflect private sector type operations and include Water and Sewer Funds, Refuse Fund,
Buffalo Grove Golf Course and Arboretum Golf Course.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for
specific activities or objectives. The Village uses fund accounting to ensure and demonstrate fiscal accountability and
legal compliance. 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 19-22) is used to account for primarily the same functions as
governmental activities in the government–wide financial statements. The focus of the presentation is 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. It is within this context that the annual budget is developed.
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 seven 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 23-27) 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 20 and 22). 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.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
Government-wide Financial Analysis
As previously reported, the assets of the Village of Buffalo Grove exceeded liabilities by $135.3 million as of
December 31, 2008. The largest portion of the Village’s net assets reflects its investment in capital assets ($94.9
million or 70%) including land, buildings, infrastructure, and equipment, less any outstanding debt related to the
original acquisition. The Village uses these capital assets to help facilitate service delivery to its residents,
consequently, these assets are not available for future spending. Although the Village’s investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay the debt must be
provided from other sources, since the capital assets themselves cannot be used to reduce these liabilities.
An additional portion of the Village’s net assets ($.1 million) represents resources that are subject to external
restrictions on how they may be used. This amount is restricted for debt service and construction obligations. The
remaining balance of unrestricted net assets ($40.3 million or 29.8%) 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 fiscal year.
The Village’s combined net assets decreased by $5.9 million as a result of governmental activities decreasing by $4.1
million and business-type activities decreasing by $1.8 million. Net assets of the Village’s governmental fund were
$76.9 million. The Village’s unrestricted net assets for governmental activities that are available for day-to-day
financial operations were $23.3 million compared to $27.2 million at December 31, 2007. The net assets of business-
type activities were $58.4 million. The business-type activities unrestricted net assets decreased by $.5 million from
the previous year.
Please refer to table below for condensed Statement of Net Assets:
2008 2007 2008 2007 2008 2007
Current and other assets 43.7 $ 46.0 $ 18.1 $ 18.4 $ 61.8 $ 64.4 $
Capital assets 61.3 63.9 41.4 42.6 102.7 106.5
Total assets 105.0 109.9 59.5 61.0 164.5 170.9
Long-term liabilities 7.7 8.7 - - 7.7 8.7
Other liabilities 20.4 18.9 1.1 0.8 21.5 19.7
Total liabilities 28.1 27.6 1.1 0.8 29.2 28.4
Net Assets:
Invested in capital
assets, net of debt 53.5 53.7 41.4 42.7 94.9 96.4
Restricted 0.1 0.1 - - 0.1 0.1
Unrestricted 23.3 27.2 17.0 17.5 40.3 44.7
Total net assets 76.9 $ 81.0 $ 58.4 $ 60.2 $ 135.3 $ 141.2 $
Governmental Business-Type
Activities Activities Total
Table 1
Statement of Net Assets
As of December 31, 2008 and 2007
(in millions)
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
At December 31, 2008, the Village of Buffalo Grove as a whole had assets greater than its liabilities by $135.3 million.
The majority (70.1%) of the Village’s net assets of governmental activities is invested in capital assets (for example,
land, buildings, vehicles, equipment), less any related outstanding debt used to acquire those assets.
The net assets of the Village’s business-type activities are $58.4 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.
- - 7
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
Changes in Net Assets.
The Village’s total revenues and expenses for governmental and business-type activities are reflected in the following
chart:
Revenue 2008 2007 2008 2007 2008 2007
Program Revenues
Charges for Service 2.8 $ 2.2 $ 10.8 $ 7.7 $ 13.6 $ 9.9 $
Grants and Contributions
Operating 1.3 1.0 - - 1.3 1.0
Capital - - 0.1 0.5 0.1 0.5
General Revenue
Property 12.1 0.7 - - 12.1 0.7
Sales and Use Taxes 8.4 5.7 - - 8.4 5.7
Income Tax 4.6 2.7 - - 4.6 2.7
Telecommunications Tax 2.4 2.0 - - 2.4 2.0
Property Transfer Tax 0.6 0.6 - - 0.6 0.6
Other 4.0 2.5 0.5 0.3 4.5 2.8
Total Revenue 36.2 17.4 11.4 8.5 47.6 25.9
Expenses
Governmental Activities
General Government 5.7 4.0 - - 5.7 4.0
Public Safety 21.1 15.4 - - 21.1 15.4
Public Works 13.2 8.2 - - 13.2 8.2
Interest 0.4 0.2 - - 0.4 0.2
Business Type
Water and Sewer - - 8.7 5.2 8.7 5.2
Refuse Services - - 1.0 0.8 1.0 0.8
Golf - - 3.4 2.6 3.4 2.6
Total Expenses 40.4 27.8 13.1 8.6 53.5 36.4
Excess before transfers and special items (4.2) (10.4) (1.7) (0.1) (5.9) (10.5)
Transfers In (Out)0.1 0.9 (0.1) (0.9) - -
Special items - - - - - -
Change in Net Assets (4.1) (9.5) (1.8) (1.0) (5.9) (10.5)
Net assets - beginning 81.0 90.5 60.2 61.2 141.2 151.7
Net assets - ending 76.9 $ 81.0 $ 58.4 $ 60.2 $ 135.3 $ 141.2 $
Changes in Net Assets
For the Years Ended December 31, 2008 and 2007
(in millions)
Total Primary
Government
Governmental
Activities
Business-Type
Activities
- - 8
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
Revenues for the Village’s governmental activities for the year ended December 31, 2008 were $36.2 million. The
revenue, and subsequently expenditure (expense), comparisons are based up eight months (fiscal year ending
December 31, 2007) versus twelve months for the fiscal year ending December 31, 2008. Property tax revenue is
typically the largest component of General revenues and was significantly more than the previous year due to the
accounting treatment of the revenue for the transitional fiscal period. Direct comparisons are difficult given the
different fiscal periods as the cyclical nature of some revenues and expenditures (expenses) does not allow for a
seamless annualization of the eight month fiscal year. That being stated, there were significant revenue decreases in
sales, income, and real estate transfer taxes. 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.
Revenue by Source - Governmental Activities
8%3%
33%
23%
13%
7%
2%11%Charges for Service
Grants and Contributions
Property
Sales and Use Taxes
Income Tax
Telecommunications Tax
Property Transfer Tax
Other
The cost of all governmental activities this year was $40.4 million. The Statement of Activities on pages 17-18 shows
that $2.8 million was financed by those who use the services, $1.3 million was financed by operating and capital
grants and contributions, with the Village’s general revenues financing $36.3 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:
- - 9
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
Expenses and Program Revenues - Governmental Activities
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
General Government Public Safety Public Works Interest and Fiscal
Charges
Expenses Program Revenues
The primary reason 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.
Business-type Activities.
Revenues for the Village’s business-type activities was $11.4 million for the year ended December 31, 2008. Ninety-
five (95%) percent of the revenues come from charges paid by the users of the services and the remainder of the
revenue is from Capital Grants and Contributions and Investment income.
Revenue by Source - Business-type Activities
Charges for Service
96%
Property Tax
0%Grants and Contributions
0%
Other
4%
Charges for Service
Grants and Contributions
Property Tax
Other
The costs of these activities were $13.1 million. The Statement of Activities is on pages 17-18.
- - 10
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
Financial Analysis of the Village’s Funds
Governmental Funds
The Village’s governmental funds for the year ended December 31, 2008 reflect a combined fund balance of $27.2
million in its balance sheet on page 19. This represents a $3.2 million dollar decrease or 10.5% over the balance
posted last year. Of the total fund balance of $27.2 million, $13.8 million is unreserved and undesignated indicating
availability for continuing Village services, $1 million is designated for the Retiree Health Saving Program. $.1 million
is reserved for debt service obligations, $10.9 million is designated for capital replacement, $1.5 million is reserved for
prepaid insurance and inventory.
Governmental Funds
The General Fund is the Village’s main operating fund and accounts for the primarily municipal services including,
public safety (police and fire), public works and general administration. The Fund Balance of the General Fund
decreased by $3.0 million or 13.3% from December 31, 2008 (from $27.0 million to $24.0 million).The decrease in
Fund Balance is primarily a product of a softening revenue base due to the current economic condition. State-shared
taxes, specifically sales taxes, dropped off significantly in the fiscal period. Driving that decrease are declines in the
auto industry and home building (lumber). Of the total fund balance, $11.6 million is unreserved indicating availability
for continuing village services. $10.9 million is unreserved but designated for capital equipment. Reserved fund
balance of $1.5 million includes, $1.4 million in reserves for prepaid insurance and $.07 million for garage inventory.
The General Fund’s revenues increased by $12 million (60%). Most of the increase is due to the shortened fiscal
period and the property tax accounting in the previous fiscal year. Revenue comparisons (based upon a factor of one
and a half times the December 31, 2007 total revenue) shows declines in sales taxes (5%), real estate transfer taxes
(24%), charges for service (25%), and investment income. Real Estate Transfer Tax decrease was mitigated by
several extraordinary transactions (sales greater than $1 million) in January 2008. The significant drop in charges for
service is due to the lack of development, both commercial and residential, and the corresponding fees generated by
those activities. Interest income (adjusted) also dipped about 50% as the short term investments held were adversely
impacted by rapid downward adjustments to the Federal Fund rates.
Expenditures increased by $11.0 million (52%). Normalizing expenditures to create a true comparison of expenditures
for the eight month period ending December 31, 2007 should be increased by 50%. Based upon that figure,
expenditures increased by $.3 million or 1.5%. Most of the increase was due to cost of living pay adjustments,
increases in health insurance premiums, and significant additional costs for the snow removal program. As stated
earlier in the report, normalization does not effectively address some cyclical expenditures that typically are expensed
in the first four months of a given fiscal year. The deficiency of revenues over expenditures was $.1 million. Adding in
the net other financing uses, the total change to fund balance totaled ($3.0). The deficit is primarily due to more
revenue being transferred to the Motor Fuel Tax Fund as a fixed percentage of home rule sales tax, to help fund
street maintenance programs as dictated by Village policy. The General Corporate Fund also contributed $1.0 million
to pay-as-you-go financing of capital projects in FY08.
Special Revenue Funds have a combined fund balance of $1.2 million as of December 31, 2008 up $.1 million from
December 31, 2007. The most significant increase was within the Motor Fuel Tax Fund account due to transfers from
the General Corporate Fund to eliminate the previous year’s deficit. The Fund accounts for the state shared motor
fuel tax revenue as well as the corresponding annual street maintenance program that is funded partially by this state
revenue. The Village also contributes .20% of home rule sales tax revenue to the MFT fund to offset
- - 11
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
program variances. Revenues received from the state share of the motor fuel tax was $1.1 million. The cost of the
2008 street maintenance program was $2.9 million. The scope of each year’s identified maintenance, as determined
through pavement analysis studies, has surpassed the relatively inelastic source of funding (more specifically the
Motor Fuel Tax allotments). Given both the rise in the cost of maintenance and the declining revenue, the amount of
street surface area repaired each year will decline. The available fund balance for the Motor Fuel Tax Fund stands at
$.1 million.
The Debt Service Fund has a total fund balance of $.03 million as of the end of FY 2008 a decrease of $.06 million
from the previous year. Total debt outstanding totals $7.7 million and are all general obligation bonds.
The Village’s Capital Improvement Funds (Facilities and Streets) have a total fund balance of $1.9 million down $.2
million from December 31, 2007. Significant projects completed in the current year include redesigning the
Emergency Operations Center, substantial completion of the White Pines drainage ditch, Dundee Road lighting
improvement, and the engineering study on the Weiland Road Corridor project.
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 Water 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 Water 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 $1.1 million as of December 31, 2008. Residential consumption of
water was at the lowest level in seventeen years declining almost 13% against the historic average.
Unrestricted net assets of the Water and Sewer Fund at the end of the current fiscal year was $17.0 million and is
available to cash finance any major infrastructure improvements or enhancements to the water system.
The Village also reported the Arboretum Golf Course Fund as a major proprietary fund. This fund accounts for all
operations of the Arboretum Golf Course. The course reported a year end unrestricted net asset deficit balance of
$.04 million. Total revenues were $.04 million more that the previous year due to slightly higher play levels
experienced. The Village of Buffalo Grove owns and operates two municipal golf courses. Similar to what is being
experienced on both national and regional golf fronts, growth in play has been relatively stagnant as the market
continues to be over-served by courses coupled with a weak economy.
General Fund Budgetary Highlights
Over the course of the year, there was one modification made to the budget/appropriation ordinance. A supplemental
appropriation ordinance was passed to address an increase in the Lake County sewer rates that was not anticipated
at the time the budget was developed. The General Fund’s actual revenues exceeded the budget by $.8 million and
actual expenditures were $1.6 million more than budgeted due to unanticipated transfers to the Motor
- - 12
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
Fuel Tax Fund and Arboretum Golf Course to offset deficit balances. Other unanticipated expenditures centered upon
increased commodity prices, most specifically, the cost of salt for the snow and ice control program.
Capital Assets
At the end of December 31, 2008, the Village had a combined total of capital assets of $102.7 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 $2.6 million.
2008 2007 2008 2007 2008 2007
Land 36.0 $ 36.0 $ 6.2 $ 6.2 $ 42.2 $ 42.2 $
Construction in progress 0.8 - 0.3 0.2 1.1 0.2
Land improvements - - 0.1 0.1 0.1 0.1
Buildings 4.6 5.4 5.8 6.4 10.4 11.8
Equipment and vehicles 3.4 3.3 - - 3.4 3.3
Streets and storm sewers 16.5 17.9 - - 16.5 17.9
Water and sewer infrastructure - 29.0 29.8 29.0 29.8
Total 61.3 $ 62.6 $ 41.4 $ 42.7 $ 102.7 $ 105.3 $
Major additions to capital assets during the year included the following (in millions):
Governmental Activities:
Building improvements 0.1
Vehicles and equipment 0.8
Business-type Activities:
Water and sewer system additions 0.4
Governmental Business-Type
Activities Activities Total
As of December 31, 2008 and 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 $1.3 million or (3%).
- - 13
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
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. Building improvements include the cost to redesign the
Village’s Emergency Operations Center.
Detailed information on the Village’s capital assets is included in Note 4 on pages 40-42.
Long-Term Debt
At year end, the Village had total bonded debt outstanding of $7.7 million as shown in the next table:
2008 2007 2008 2007 2008 2007
General obligation bonds 7.7 $ 8.9 $ -$ -$ 7.7 $ 8.9 $
7.7 $ 8.9 $ -$ -$ 7.7 $ 8.9 $
Total
Outstanding Debt
General Obligation Bonds
(in millions)
Governmental
Activities Activities
Business-Type
As of December 31, 2008 and 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 $171.82 and represents .35% 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 2009 that may require the issuance of debt. Those projects include the expansion of
fire station #26, expansion of the public service center, and drainage improvements.
Detailed information on the Village’s long-term debt can be found in Note 5 on pages 42-44.
Economic Factors
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
- - 14
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Continued)
December 31, 2008
the community. Sales tax will be impacted in FY 2009 as three auto dealerships are relocating operations to larger
parcels outside of the Village. One of dealerships has been reoccupied by Saturn. Management is working diligently
to reoccupy the properties.
In order to avoid over reliance on a particular source of revenue, the Village continues to seek ways to diversify its
revenue structure. In the current economic climate, the Village will need to address significant shortfalls in revenue
stemming from declining sales taxes, increased unemployment resulting in lower income taxes, and a significant drop
in interest earnings. Where possible, the Village will need to seek federal and state funding for capital improvements
and public safety service enhancements through various grant/loan opportunities.
In fiscal year 2009, the Village will continue to look for additional funding to supplement the Motor Fuel Tax. 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 54% 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.
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 2009 will be as challenging as FY 2008.
The performance of the equity markets will be monitored closely as all three of the defined benefit plans (IMRF, Police
and Firefighter Pension Funds) booked significant losses in FY 2008. The funding status of all three were impacted by
the poor returns widely missing interest assumption benchmarks. A rebound in equities would reduce the pressure on
property tax levy requirements.
The fiscal year ending December 31, 2009 Operating Budget Revenues are $60.1 million compared to $58.3 million
the previous year. The budgeted Operating Expenditures are $60.9 million ($57.3 million for December 31, 2008). 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 almost 50% of total Village expenditures. Pension and group health insurance
represent a significant portion of the annual personnel expenditures. The group health insurance costs in 2009 are
projected to be $3.4 million. Modifications continue to be made to the plan to help contain costs without threatening
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 of
General Services, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089.
BASIC FINANCIAL STATEMENTS
Village of Buffalo Grove, Illinois
Statement of Net Assets
December 31, 2008
Governmental Business-Type
Activities Activities Total
Assets
Current
Cash and equivalents 13,883,519 $ 4,938,529 $ 18,822,048 $
Investments 11,401,426 3,817,000 15,218,426
Receivables
Property taxes 12,762,513 - 12,762,513
Accounts - water - 1,009,442 1,009,442
Municipal sales tax 2,138,241 - 2,138,241
Illinois income tax 607,247 - 607,247
Motor fuel tax 104,912 - 104,912
Telecommunications tax 599,856 - 599,856
Food and beverage tax 58,805 - 58,805
Interest 38,661 25,032 63,693
Other 197,874 - 197,874
Inventory 64,976 28,485 93,461
Total current assets 41,858,030 9,818,488 51,676,518
Noncurrent
Prepaid items 1,471,595 506,307 1,977,902
Investment in joint venture - 7,804,998 7,804,998
Net pension asset 397,547 - 397,547
Capital assets (net of
accumulated depreciation)
Land 35,963,844 6,198,514 42,162,358
Construction in progress 778,042 283,814 1,061,856
Buildings 4,602,443 5,790,764 10,393,207
Land improvements - 69,229 69,229
Equipment and vehicles 3,419,566 - 3,419,566
Streets and storm sewers 16,527,370 - 16,527,370
Water and sewer system infrastructure - 29,031,948 29,031,948
Total noncurrent assets 63,160,407 49,685,574 112,845,981
Total assets 105,018,437 $ 59,504,062 $ 164,522,499 $
(Continued)
See Notes to Financial Statements.
- 15 -
Village of Buffalo Grove, Illinois
Statement of Net Assets - Continued
December 31, 2008
Governmental Business-Type
Activities Activities Total
Liabilities
Current
Accounts payable and accrued liabilities 2,195,070 $ 1,066,072 $ 3,261,142 $
Accumulated unpaid sick leave 33,314 - 33,314
Claims payable 226,252 - 226,252
Deposits payable 1,035,893 60,405 1,096,298
Unearned property taxes 12,488,364 - 12,488,364
Net other post-employment obligation 67,615 - 67,615
Other liabilities - pension funds 3,261,007 - 3,261,007
General obligation bonds payable 1,165,000 - 1,165,000
Total current liabilities 20,472,515 1,126,477 21,598,992
Noncurrent
Accumulated unpaid sick leave 1,079,880 - 1,079,880
General obligation bonds payable 6,575,000 - 6,575,000
Total noncurrent liabilities 7,654,880 - 7,654,880
Total liabilities 28,127,395 1,126,477 29,253,872
Net Assets
Invested in capital assets, net of related debt 53,551,265 41,374,269 94,925,534
Restricted for
Debt service 33,167 - 33,167
Road construction 47,271 - 47,271
Unrestricted 23,259,339 17,003,316 40,262,655
Total net assets 76,891,042 $ 58,377,585 $ 135,268,627 $
See Notes to Financial Statements.
- 16 -
Village of Buffalo Grove, Illinois
Statement of Activities
Year Ended December 31, 2008
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government 5,705,497 $ 1,211,188 $ -$ -$
Public safety 21,115,737 1,514,666 173,488 -
Public works 13,222,026 94,670 1,134,407 -
Interest and fiscal charges 379,501 - - -
Total governmental activities 40,422,761 2,820,524 1,307,895 -
Business-type activities
Waterworks and sewerage 8,684,651 7,538,534 - 133,599
Refuse service 1,017,164 923,207 - -
Golf courses 3,423,903 2,356,962 - -
Total business-type activities 13,125,718 10,818,703 - 133,599
Total 53,548,479 $ 13,639,227 $ 1,307,895 $ 133,599 $
General revenues
Taxes
Property
Sales and use
Income
Telecommunications
Property transfer
Other
Investment income
Miscellaneous
Transfers in (out)
Total general revenues
and transfers
Change in net assets
Net assets - beginning
Net assets - ending
See Notes to Financial Statements.
Program Revenues
- 17 -
Governmental Business-Type
Activities Activities Total
(4,494,309) $ -$ (4,494,309) $
(19,427,583) - (19,427,583)
(11,992,949) - (11,992,949)
(379,501) - (379,501)
(36,294,342) - (36,294,342)
- (1,012,518) (1,012,518)
- (93,957) (93,957)
- (1,066,941) (1,066,941)
- (2,173,416) (2,173,416)
(36,294,342) (2,173,416) (38,467,758)
12,058,815 - 12,058,815
8,436,647 - 8,436,647
4,646,776 - 4,646,776
2,417,496 - 2,417,496
590,596 - 590,596
1,076,929 - 1,076,929
810,982 267,263 1,078,245
2,081,112 187,034 2,268,146
80,230 (80,230) -
32,199,583 374,067 32,573,650
(4,094,759) (1,799,349) (5,894,108)
80,985,801 60,176,934 141,162,735
76,891,042 $ 58,377,585 $ 135,268,627 $
Net (Expense), Revenue and Changes in Net Assets
- 18 -
Village of Buffalo Grove, Illinois
Balance Sheet - Governmental Funds
December 31, 2008
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Assets
Cash and equivalents 10,413,319 $ 3,470,200 $ 13,883,519 $
Investments 10,889,314 - 10,889,314
Receivables
Property taxes 10,488,707 2,273,806 12,762,513
Municipal sales tax 2,138,241 - 2,138,241
Illinois income tax 607,247 - 607,247
Motor fuel tax - 104,912 104,912
Telecommunications tax 599,856 - 599,856
Food and beverage tax 58,805 - 58,805
Interest 38,661 - 38,661
Other 28,987 168,887 197,874
Due from other funds 63,261 - 63,261
Inventory 64,976 - 64,976
Prepaid items 1,471,595 - 1,471,595
Total assets 36,862,969 $ 6,017,805 $ 42,880,774 $
Liabilities
Accounts payable and accrued liabilities 1,581,994 $ 609,287 $ 2,191,281 $
Deposits payable 1,035,893 - 1,035,893
Deferred property taxes 10,263,692 2,224,672 12,488,364
Total liabilities 12,881,579 2,833,959 15,715,538
Fund Balances
Reserved for inventory 64,976 - 64,976
Reserved for prepaid items 1,471,595 - 1,471,595
Reserved for debt service - 33,167 33,167
Unreserved - designated
General fund 10,856,882 - 10,856,882
Special revenue funds - 985,206 985,206
Unreserved - undesignated
General fund 11,587,937 - 11,587,937
Special revenue funds - 254,295 254,295
Capital projects funds - 1,911,178 1,911,178
Total fund balances 23,981,390 3,183,846 27,165,236
Total liabilities and fund balances 36,862,969 $ 6,017,805 $ 42,880,774 $
See Notes to Financial Statements.- 19 -
Village of Buffalo Grove, Illinois
December 31, 2008
Total fund balances-governmental funds 27,165,236 $
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. 61,291,265
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.397,547
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: 218,810
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:
Net other post-employment obligation (67,615)
Other liabilities to pension funds (3,261,007)
General obligation bonds payable (7,740,000)
Accumulated unpaid sick leave (1,113,194)
Net assets of governmental activities 76,891,042 $
See Notes to Financial Statements.
Reconciliation of the Balance Sheet - Governmental Funds
to the Statement of Net Assets
- 20 -
Village of Buffalo Grove, Illinois
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds
Year Ended December 31, 2008
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Revenues
Charges for services 1,036,282 $ 164,099 $ 1,200,381 $
Licenses and permits 278,965 - 278,965
Intergovernmental - 1,134,407 1,134,407
Fines and fees 1,514,666 - 1,514,666
Property taxes 9,984,535 2,074,280 12,058,815
Other taxes 17,168,444 - 17,168,444
Investment income 710,624 79,620 790,244
Miscellaneous 1,452,574 628,538 2,081,112
Total revenues 32,146,090 4,080,944 36,227,034
Expenditures
Current
General government 4,862,350 596,612 5,458,962
Public safety 20,099,369 399,635 20,499,004
Public works 7,309,675 3,483,256 10,792,931
Capital projects - 1,286,175 1,286,175
Debt service
Principal - 1,150,000 1,150,000
Interest and fiscal charges - 379,501 379,501
Total expenditures 32,271,394 7,295,179 39,566,573
Deficiency of revenues over expenditures (125,304) (3,214,235) (3,339,539)
Other financing sources (uses)
Transfers in 635,230 3,486,221 4,121,451
Transfers out (3,541,221) (500,000) (4,041,221)
Total other financing sources (uses) (2,905,991) 2,986,221 80,230
Net change in fund balances (3,031,295) (228,014) (3,259,309)
Fund balances - beginning 27,012,685 3,411,860 30,424,545
Fund balances - ending 23,981,390 $ 3,183,846 $ 27,165,236 $
See Notes to Financial Statements.
- 21 -
Village of Buffalo Grove, Illinois
Year Ended December 31, 2008
Net change in fund balances-total governmental funds (3,259,309) $
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. ($1,707,520 current additions less $2,980,759 depreciation) (1,273,239)
Repayment of principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the
Statement of Net Assets. 1,150,000
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. (432,247)
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 disposal of capital assets (27,980)
Increase in pension asset 193,586
Increase in net other post-employment obligation (67,615)
Increase in accumulated unpaid sick leave (45,909)
Increase in other liabilities to pension funds (332,046)
Change in net assets of governmental activities (4,094,759) $
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
- 22 -
Village of Buffalo Grove, Illinois
Statement of Net Assets - Proprietary Funds
December 31, 2008
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Assets
Current
Cash and equivalents 4,865,550 $ 1,358 $ 71,621 $ 4,938,529 $ -$
Investments 3,817,000 - - 3,817,000 512,111
Receivables
Accounts - water 1,009,442 - - 1,009,442 -
Interest 25,032 - - 25,032 -
Inventory - 9,542 18,943 28,485 -
Total current assets 9,717,024 10,900 90,564 9,818,488 512,111
Noncurrent
Prepaid items 506,307 - - 506,307 -
Investment in joint venture 7,804,998 - - 7,804,998 -
Capital assets (net of
accumulated depreciation)
Land - 5,219,738 978,776 6,198,514 -
Construction in progress 283,814 - - 283,814 -
Buildings - 5,407,188 383,576 5,790,764 -
Land improvements - 50,922 18,307 69,229 -
Water and sewer system
infrastructure 29,031,948 - - 29,031,948 -
Total noncurrent assets 37,627,067 10,677,848 1,380,659 49,685,574 -
Total assets 47,344,091 $ 10,688,748 $ 1,471,223 $ 59,504,062 $ 512,111 $
(Continued)
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 23 -
Village of Buffalo Grove, Illinois
Statement of Net Assets - Proprietary Funds - Continued
December 31, 2008
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Liabilities
Current
Accounts payable and
accrued liabilities 957,770 $ 54,541 $ 53,761 $ 1,066,072 $ 3,788 $
Claims payable - - - - 226,252
Deposits payable 60,405 - - 60,405 -
Due to other funds - - - - 63,261
Total liabilities 1,018,175 54,541 53,761 1,126,477 293,301
Net Assets
Invested in capital assets, net of
related debt 29,315,762 10,677,848 1,380,659 41,374,269 -
Unrestricted 17,010,154 (43,641) 36,803 17,003,316 218,810
Total net assets 46,325,916 $ 10,634,207 $ 1,417,462 $ 58,377,585 $ 218,810 $
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 24 -
Village of Buffalo Grove, Illinois
Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds
Year Ended December 31, 2008
Governmental
Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Operating revenues
Water and sewerage charges 7,202,622 $ -$ -$ 7,202,622 $ -$
Daily greens fees and memberships - 724,939 847,268 1,572,207 -
Merchandise sales - 55,681 82,907 138,588 -
Connection and recapture fees 335,912 - - 335,912 -
Cart, club and other rentals - 283,696 251,370 535,066 -
Driving range fees - - 59,622 59,622 -
SWANCC user fees - - 923,207 923,207 -
Health premiums - - - - 3,509,693
Miscellaneous - 37,171 14,308 51,479 -
Total operating revenues 7,538,534 1,101,487 2,178,682 10,818,703 3,509,693
Operating expenses
Water operations 1,447,925 - - 1,447,925 -
Sewer operations 4,312,530 - - 4,312,530 -
Water purchases 1,803,823 - - 1,803,823 -
Golf operations - 1,348,964 1,320,208 2,669,172 -
Cost of sales - pro shop - 61,247 68,697 129,944 -
Refuse operations - - 1,017,164 1,017,164 -
Health services - - - - 3,962,678
Depreciation 1,120,373 504,790 119,997 1,745,160 -
Total operating expenses 8,684,651 1,915,001 2,526,066 13,125,718 3,962,678
Operating (loss) (1,146,117) (813,514) (347,384) (2,307,015) (452,985)
Nonoperating revenues (expenses)
Income from joint venture 185,374 - - 185,374 -
Investment income 266,479 - 784 267,263 20,738
Other - 1,660 - 1,660 -
Total nonoperating revenues (expenses) 451,853 1,660 784 454,297 20,738
(Loss) before transfers
and capital contributions (694,264) (811,854) (346,600) (1,852,718) (432,247)
Capital contributions 133,599 - - 133,599 -
Transfers in - 561,000 214,000 775,000 -
Transfers out (815,230) (40,000) - (855,230) -
(681,631) 521,000 214,000 53,369 -
Change in net assets (1,375,895) (290,854) (132,600) (1,799,349) (432,247)
Net assets - beginning 47,701,811 10,925,061 1,550,062 60,176,934 651,057
Net assets - ending 46,325,916 $ 10,634,207 $ 1,417,462 $ 58,377,585 $ 218,810 $
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 25 -
Village of Buffalo Grove, Illinois
Statement of Cash Flows – Proprietary Funds
Year Ended December 31, 2008
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 7,072,242 $ -$ -$ 7,072,242 $ -$
Cash received from residents for connections 335,912 - - 335,912 -
Cash received for golf activities - 1,101,487 1,255,475 2,356,962 -
Cash received for refuse services - - 923,207 923,207 -
Cash received from other funds for services - - - - 3,509,693
Payments to employees (1,330,363) (751,021) (798,751) (2,880,135) -
Payments to suppliers (5,882,729) (871,768) (1,688,142) (8,442,639) (4,204,043)
Net cash flows from operating activities 195,062 (521,302) (308,211) (634,451) (694,350)
Cash flows from noncapital financing activities
Property taxes - 1,660 - 1,660 -
Transfers in - 561,000 214,000 775,000 -
Transfers out (815,230) (40,000) - (855,230) -
Net cash flows from noncapital financing activities (815,230) 522,660 214,000 (78,570) -
Cash flows from capital and related
financing activities
Capital assets purchased (318,090) - - (318,090) -
Cash flows from investing activities
Interest received 260,846 - 784 261,630 20,738
Purchase of investments (690,000) - - (690,000) (512,111)
Sale of investments 1,812,000 - - 1,812,000 -
Net cash flows from investing activities 1,382,846 - 784 1,383,630 (491,373)
Net increase (decrease) in cash and
equivalents 444,588 1,358 (93,427) 352,519 (1,185,723)
Cash and equivalents - beginning 4,420,962 - 165,048 4,586,010 1,185,723
Cash and equivalents - ending 4,865,550 $ 1,358 $ 71,621 $ 4,938,529 $ -$
See Notes to Financial Statements.(Continued)
Business-Type Activities - Enterprise Funds
- 26 -
Village of Buffalo Grove, Illinois
Statement of Cash Flows – Proprietary Funds - Continued
Year Ended December 31, 2008
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 (1,146,117) $ (813,514) $ (347,384) $ (2,307,015) $ (452,985) $
Adjustments to reconcile operating loss
to net cash flows from operating activities
Depreciation 1,120,373 504,790 119,997 1,745,160 -
Changes in assets and liabilities
Receivables (130,380) - - (130,380) -
Inventory - (1,077) 1,834 757 -
Prepaids 82,690 - - 82,690 -
Accounts payable and accrued liabilities 272,659 10,410 (8,082) 274,987 (304,626)
Deposits payable (4,163) - - (4,163) -
Due to other funds - (221,911) (74,576) (296,487) 63,261
Total adjustments 1,341,179 292,212 39,173 1,672,564 (241,365)
Net cash flows from operating activities 195,062 $ (521,302) $ (308,211) $ (634,451) $ (694,350) $
Summary of noncash capital and related
financing activities
Capital assets contributed by developers 133,599 $ -$ -$ 133,599 $ -$
Summary of noncash investing activities
Income from joint venture 185,374 $ -$ -$ 185,374 $ -$
See Notes to Financial Statements.
Business-Type Activities - Enterprise Funds
- 27 -
Village of Buffalo Grove, Illinois
Statement of Fiduciary Net Assets
Year Ended December 31, 2008
Pension Trust Agency
Funds Fund
Assets
Cash and equivalents 12,100,316 $ 406,193 $
Investments
Certificates of deposit 8,514,000 -
U.S. government and agency obligations 21,211,476 -
Open-end mutual funds 13,144,825 -
Receivables
Pension contributions 3,261,007 -
Interest 66,275 -
Total assets 58,297,899 406,193
Liabilities
Accounts payable 8,203 -
Due to other governments - 406,193
Total liabilities 8,203 406,193
Net Assets
Restricted for pension benefits 58,289,696 $ -$
See Notes to Financial Statements.
- 28 -
Village of Buffalo Grove, Illinois
Statement of Changes in Fiduciary Net Assets - Pension Trust Funds
Year Ended December 31, 2008
Additions
Contributions
Employer 3,449,623 $
Participants 1,021,936
4,471,559
Investment income (loss)
Net depreciation in fair value of investments (5,928,876)
Interest income 660,846
Less investment expense (91,554)
(5,359,584)
Total additions (888,025)
Deductions
Administration 45,857
Pension benefits and refunds 1,829,495
Total deductions 1,875,352
Change in net assets (2,763,377)
Net assets - beginning 61,053,073
Net assets - ending 58,289,696 $
See Notes to Financial Statements.
- 29 -
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 30
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
- - 31
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
- - 32
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 including sales,
telecommunucations, income, and prepared food and beverage 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
- - 33
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).
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 fuel reserves and parts, 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
- - 34
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, land improvements, 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:
Years
Buildings 20
Well and system improvements 5 - 50
Furniture and equipment 2 - 10
Vehicles 2 - 12
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 manual. 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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 35
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 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 (if any) 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 January
1. The program budget includes proposed expenditures and the means of financing them.
(2) Appropriation ordinance public hearings are conducted by the Village to obtain taxpayer comments, and the
ordinance is subsequently adopted by the Board.
(3) The program budget is legally enacted through a resolution adopted by the Board.
(4) Any expenditures that exceed the total appropriations at the fund level must be approved by the Board of
Trustees.
The Village Manager is authorized to transfer budgeted amounts between departments within any fund. However,
any modifications to the legally adopted appropriation ordinance may not exceed expenditure limits, at the fund level,
mandated by the appropriation ordinance without approval by the Board. There was a supplemental appropriation
ordinance passed by the Village Board during the fiscal period.
The Water and Sewer Fund and Parking Lot Funds exceeded the legally adopted appropriation ordinance requiring
supplemental appropriations.
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.
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
- - 36
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 $10,856,882 for capital equipment replacement.
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
- - 37
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, 2008:
Fair Less Than Greater Than
Investment Type Value 1 Year 1-5 Years 6-10 Years 10 Years
U.S. Treasuries - Zero Coupon 18,162,008 $ 4,490,460 $ 5,285,896 $ 5,007,052 $ 3,378,600 $
GNMA's 2,497 - - 2,497 -
U.S. Agencies 3,046,971 - - 2,213,127 833,844
Illinois Funds* 15,640,158 15,640,158 - - -
Illinois Metropolitan Investment Fund* 9,863,701 - 9,863,701 - -
Money Market Funds* 924,483 924,483 - - -
Total 47,639,818 $ 21,055,101 $ 15,149,597 $ 7,222,676 $ 4,212,444 $
Maturities (in Years)
*Based on 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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 38
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, 2008 (excluding investments in U.S. Treasuries and GNMA’s which are not considered
to have credit Risk) are as follows:
% of
Investment
Investment Type Ratings Type
U.S. Agencies AAA/Aaa 100%
Illinois Funds AAA/NR 100%
Illinois Metropolitan Investment Fund AAA/NR 100%
Money Market Funds AAA/NR 100%
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.
As of December 31, 2008, the Village’s investments were not exposed to concentration of credit risk.
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, 2008, the Village’s
investments were not exposed to custodial credit risk.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 39
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 in the proprietary funds and government-wide financial statements are recorded on the accrual basis.
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 2008 property tax levy is recorded as a receivable and deferred (unearned) revenue as it is intended to finance
fiscal year 2009. 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
- - 40
Note 4. Capital Assets
Governmental Activities
A summary of changes in capital assets for governmental activities of the Village is as follows:
Balance, Balance,
January 1, December 31,
2008 Additions Deletions 2008
Government activities:
Capital assets not being depreciated:
Land 35,963,844 $ -$ -$ 35,963,844 $
Construction in progress 25,991 778,042 25,991 778,042
Total capital assets not being depreciated 35,989,835 778,042 25,991 36,741,886
Capital assets being depreciated:
Buildings 20,698,710 133,668 - 20,832,378
Equipment and vehicles 10,043,535 795,810 423,747 10,415,598
Streets 19,040,719 - - 19,040,719
Storm sewers 37,665,289 - - 37,665,289
87,448,253 929,478 423,747 87,953,984
Less accumulated depreciation for:
Buildings 15,266,677 963,258 - 16,229,935
Equipment and vehicles 6,753,134 664,656 421,758 6,996,032
Streets 9,510,004 376,347 - 9,886,351
Storm sewers 29,315,789 976,498 - 30,292,287
60,845,604 2,980,759 421,758 63,404,605
Total capital assets being depreciated, net 26,602,649 (2,051,281) 1,989 24,549,379
Governmental activities capital assets, net 62,592,484 $ (1,273,239) $ 27,980 $ 61,291,265 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 41
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:
Balance, Balance,
January 1, December 31,
2008 Additions Deletions 2008
Business-type activities:
Capital assets not being depreciated:
Land 6,198,514 $ -$ -$ 6,198,514 $
Construction in progress 192,373 283,814 192,373 283,814
Total capital assets not
being depreciated 6,390,887 283,814 192,373 6,482,328
Capital assets being depreciated:
Buildings 10,284,359 - - 10,284,359
Land improvements 1,966,488 - - 1,966,488
Equipment 94,510 - - 94,510
Water/sewer system infrastructure 55,493,405 360,248 - 55,853,653
67,838,762 360,248 - 68,199,010
Less accumulated depreciation for:
Buildings 3,952,978 540,617 - 4,493,595
Land improvements 1,818,589 78,670 - 1,897,259
Equipment 89,010 5,500 - 94,510
Water/sewer system infrastructure 25,701,332 1,120,373 - 26,821,705
31,561,909 1,745,160 - 33,307,069
Total capital assets being
depreciated, net 36,276,853 (1,384,912) - 34,891,941
Business-type activities
capital assets, net 42,667,740 $ (1,101,098) $ 192,373 $ 41,374,269 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 42
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 260,627 $ -$
Public safety 652,947 -
Public works 2,067,185 -
Waterworks and sewerage - 1,120,373
Golf courses - 624,787
2,980,759 $ 1,745,160 $
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.
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
- - 43
Note 5. Long-Term Obligations (Continued)
Changes in long-term debt were as follows:
Balance Balance Due Within
January 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 4,125,000 $ -$ 235,000 $ 3,890,000 $ 245,000 $
$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 2,505,000 - 530,000 1,975,000 520,000
$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 530,000 - 125,000 405,000 130,000
$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 1,730,000 - 260,000 1,470,000 270,000
Total General Obligation Bonds 8,890,000 - 1,150,000 7,740,000 1,165,000
Accumulated Unpaid Sick Leave* 1,067,285 212,320 166,411 1,113,194 33,314
Total Governmental Activities 9,957,285 $ 212,320 $ 1,316,411 $ 8,853,194 $ 1,198,314 $
Total Long-Term Debt 9,957,285 $ 212,320 $ 1,316,411 $ 8,853,194 $ 1,198,314 $
* These liabilities will be liquidated by the General Fund.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 44
Note 5. Long-Term Obligations (Continued)
Annual Debt Service Requirements to Maturity
The annual requirements to amortize all debt outstanding as of December 31, 2008, for governmental activities is as
follows:
Year Ending
December 31, Principal Interest
2009 1,165,000 $ 330,840 $
2010 885,000 285,703
2011 1,015,000 251,198
2012 895,000 210,801
2013 925,000 174,812
2014-2018 2,030,000 475,315
2019-2020 825,000 61,250
7,740,000 $ 1,789,919 $
General Obligation Bonds
Governmental Activities
Note 6. Employee Retirement Systems
Illinois Municipal Retirement
Plan Description
The Village’s defined benefit pension plan for regular employees provides retirement and disability benefits, post
retirement increases, and death benefits to plan members and beneficiaries. The Village plan is affiliated with the
Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by
statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available
financial report that includes financial statements and required supplementary information. That report may be
obtained on-line at www.imrf.org.
Funding Policy
As set by statute, employer regular plan members are required to contribute 4.50 percent of their annual covered
salary. The statutes require employers to contribute the amount necessary, in addition to member contributions, to
finance the retirement coverage of its own employees. The employer contribution rate for calendar year 2008 was
10.48 percent of annual covered payroll. The Village also contributes for disability benefits, death benefits and
supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death
benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute.
Annual Pension Cost
The Village's annual pension cost of $907,890 for the regular plan was equal to the Village’s required and actual
contributions.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 45
Note 6. Employee Retirement Systems (Continued)
Illinois Municipal Retirement (Continued)
Three-Year Trend Information for the Regular Plan
For Annual Percentage Net Pension
Fiscal Pension of APC Asset
Year Cost (APC) Contributed (Obligation)
12/31/2008 907,890 $ 100% -
12/31/2007 819,958 100% -
12/31/2006 800,153 100% -
The required contribution was determined as part of the December 31, 2006 actuarial valuation using the entry age
normal actuarial cost method. The actuarial assumptions at December 31, 2006 included (a) 7.5 percent investment
rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.00% a year,
attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 11.6% per year depending on
age and service, attributable to seniority/merit, and (d) post retirement benefit increases of 3% annually. The
actuarial value of the Village’s regular plan assets was determined using techniques that spread the effects of short-
term volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and
market value of assets. The Village’s regular plan’s unfunded actuarial accrued liability is being amortized as a level
percentage of projected payroll on a closed basis. The remaining amortization period at December 31, 2006 was 24
years.
Funded Status and Funding Progress
As of December 31, 2008, the regular plan was 73.71 percent funded. The actuarial liability for benefits was
$25,777,985 and the actuarial value of assets was $19,002,171 resulting in an underfunded actuarial accrued liability
(UAAL) of $6,775,814. The covered payroll (annual payroll of active employees covered by the plan) was $8,663,075
and the ratio of the UAAL to the covered payroll was 78.21 percent.
The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets in increasing or decreasing over time relative
to the actuarial accrued liability for benefits.
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 December 31, 2007. Those actuarial valuations were performed to determine the Village’s
required contributions and annual pension costs for those plans for its fiscal year ended December 31, 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
- - 46
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:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 28
Current employees
Vested 54
Nonvested 17
Total 99
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 December 31, 2008, the Village's annual pension cost was $1,752,254. The Village's actual contribution was
$1,868,998. For a description of the significant actuarial assumptions, see “Significant Actuarial Assumptions.”
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 47
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 December 31, 2008, was $215,650. It was comprised of the following components:
Annual required contribution (ARC) 1,754,664 $
Interest on the net pension asset (7,418)
Adjustment on the ARC 5,008
Annual pension cost 1,752,254
Contributions made 1,868,998
Increase in pension asset 116,744
Pension asset at January 1, 2008 98,906
Pension asset at December 31, 2008 215,650 $
The net pension asset of $215,650 is also reported by the Village in the government-wide Statement of Net Assets at
December 31, 2008.
Three-Year Trend Information for the Police Pension
For Annual Percentage Net Pension
Fiscal Pension of APC Asset
Year Cost (APC) Contributed (Obligation)
12/31/2008 1,752,254 $ 106.66 % 215,650 $
12/31/2007 1,426,580 98.30 98,906
12/31/2006 1,070,771 96.20 123,507
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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 48
Note 6. Employee Retirement Systems (Continued)
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.
The Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries currently receiving
benefits and terminated employees entitled
to benefits but not yet receiving them 11
Current employees
Vested 49
Nonvested 12
Total 72
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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 49
Note 6. Employee Retirement Systems (Continued)
Firefighters' Pension (Continued)
Annual Pension Cost and Net Pension Asset
At December 31, 2008, the Village's annual pension cost was $1,503,783. The Village's actual contribution was
$1,580,625. For a description of the significant actuarial assumptions, see “Significant Actuarial Assumptions.”
The net pension asset at December 31, 2008, was $181,897. It was comprised of the following components:
Annual required contribution (ARC) 1,506,343 $
Interest on the net pension asset (7,879)
Adjustment on the ARC 5,319
Annual pension cost 1,503,783
Contributions made 1,580,625
Increase in pension asset 76,842
Pension asset at January 1, 2008 105,055
Pension asset at December 31, 2008 181,897 $
The net pension asset of $181,897 is also reported by the Village in the government-wide Statement of Net Assets at
December 31, 2008.
Three-Year Trend Information for the Firefighters’ Pension
For Annual Percentage Net Pension
Fiscal Pension of APC Asset
Year Cost (APC) Contributed (Obligation)
12/31/2008 1,503,783 $ 105.10 % 181,897 $
12/31/2007 1,291,341 88.70 105,055
12/31/2006 979,169 104.20 250,684
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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 50
Note 6. Employee Retirement Systems (Continued)
Summary of Significant Accounting Policies and Plan Asset Matters
The financial statements for the Police and Firefighters’ Pension Trust Funds 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.
Funded Status and Funding Progress – Pension Trust Funds
The funded status of the Police and Firefighters’ Pension Plans as of December 31, 2007, the most recent actuarial
valuation date, is as follows:
(1) (2) (2)–(1)
Actuarial Actuarial Accrued Unfunded (1)/(2) (3)
Value of Liability (AAL) AAL Funded Covered
Assets Entry Age (UAAL) Ratio Payroll
Police 34,503,602 $ 54,297,346 $ 19,793,744 $ 63.55 % 5,580,751 $ 354.68 %
Firefighters 26,549,471 39,224,368 12,674,897 67.69 4,859,001 260.85
Payroll
((2-1)/3)
UAAL as a
Percentage of
Covered
The schedules of funding progress, presented as required supplementary information (RSI) following the notes to the
financial statements, present multi-year trend information about whether the actuarial values of plan assets are
increasing or decreasing over time relative to the AAL’s for benefits.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 51
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,
2008
December 31,
2007
December 31,
2007
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 24 years 26 years 26 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 11.6%
(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
- - 52
Note 6. Employee Retirement Systems (Continued)
Individual Plan Financial Statements
Statements of Fiduciary Net Assets – Pension Trust Funds
December 31, 2008
Police Firefighters'
Pension Pension
Assets
Cash and equivalents 9,217,390 $ 2,882,926 $
Investments
Certificates of deposit - 8,514,000
U.S. government and agency obligations 17,060,976 4,150,500
Open-end mutual funds 5,710,757 7,434,068
Receivables
Pension contributions 1,754,664 1,506,343
Interest - 66,275
Total assets 33,743,787 24,554,112
Liabilities
Accounts payable 7,374 829
Net Assets
Held in trust for pension benefits
(Schedules of funding progress for the
plans are presented in the required
supplementary information section.) 33,736,413 $ 24,553,283 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 53
Note 6. Employee Retirement Systems (Continued)
Individual Plan Financial Statements
Statements of Changes in Fiduciary Net Assets – Pension Trust Funds
Year Ended December 31, 2008
Police Firefighters'
Pension Pension
Additions
Contributions
Employer 1,868,998 $ 1,580,625 $
Participants 556,685 465,251
2,425,683 2,045,876
Investment income (loss)
Net depreciation in fair
value of investments (1,943,625) (3,985,251)
Interest income 208,854 451,992
Less investment expense (44,047) (47,507)
(1,778,818) (3,580,766)
Total additions 646,865 (1,534,890)
Deductions
Administration 19,083 26,774
Pension benefits and refunds 1,394,971 434,524
Total deductions 1,414,054 461,298
Change in net assets (767,189) (1,996,188)
Net assets - beginning 34,503,602 26,549,471
Net assets - ending 33,736,413 $ 24,553,283 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 54
Note 7. Other Post-Employment Benefits (OPEB)
Plan Description.
In addition to providing the pension benefits described in Note 6, the Village provides post-employment health care
benefits (OPEB) for retired employees. The Village of Buffalo Grove Group Health Plan (the Plan) is a single-
employer defined benefit healthcare plan administered by the Village. The Plan provides medical and dental
insurance benefits to eligible retirees and their dependents. The benefits, benefit levels, employee contributions and
employer contributions are governed by the Village Board and can only be amended by the Village Board. The Plan
is not accounted for as a trust fund and an irrevocable trust has not been established. The Village does not issue a
Plan financial report.
Funding Policy
The contribution requirements of plan members and the Village are established and may be amended by the Village
Board and are detailed in the “Plan Document and Summary Plan Description.” The required contribution is based on
projected pay-as-you-go financing requirements. For fiscal year 2008, the Village contributed $50,184 to the plan,
including $50,184 for current premiums (approximately 20 percent of total premiums). Plan members receiving
benefits contributed $196,619, or approximately 80 percent of the total premiums, through their required contribution
of $429.47 per month for retiree-only coverage, $800.31 for retiree and dependent coverage and $1,353.41 for family
coverage.
Annual OPEB Cost and Net OPEB Obligation
The Village’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal
cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
years. The following table shows the components of the Village’s annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the Village’s net OPEB obligation to the Plan:
Annual required contribution (ARC) 117,799 $
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB cost 117,799
Contribution made 50,184
Increase in net OPEB obligation 67,615
Net OPEB obligation beginning of year -
Net OPEB obligation end of year 67,615 $
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 55
Note 7. Other Post-Employment Benefits (OPEB) (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
The Village’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2008 was as follows:
Percentage
Annual of Annual
Fiscal Year OPEB OPEB Cost Net OPEB
Ending Cost Contributed Obligation
12/31/2008 117,799 $ 42.6% 67,615 $
Funded Status and Funding Progress
As of December 31, 2008, the plan was 100% unfunded. The actuarial accrued liability for benefits was $1,718,898,
and the actuarial value of assets was $0 (zero), resulting in an unfunded actuarial accrued liability (UAAL) of
$1,718,898. The covered payroll (annual payroll of active employees covered by the plan) was $18,725,417, and the
ratio of the UAAL to the covered payroll was 9.18 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by
the employer and the plan members) and include the types of benefits provided at the time of each valuation and the
historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
In the December 31, 2007 actuarial valuation (most recent available), the entry age actuarial cost method was used.
The actuarial assumptions included a 5.0 percent investment rate of return (net of administrative expenses), which is
a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments
calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 8
percent initially, reduced by decrements to an ultimate rate of 6 percent ultimately. Both rates included a 3.0 percent
inflation assumption. The actuarial value of assets was determined using market value. The UAAL is being amortized
as a level percentage of projected payroll on a closed basis. The remaining amortization period at December 31,
2007, was 30 years.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 56
Note 8. 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 9. Interfund Activity
Due To/From Other Funds
Individual interfund balances for the Village at December 31, 2008, are shown as follows:
Due From
Detail/Explanation Other Funds
General Fund
Health Insurance Reserve Fund Loan for short-term cash needs 63,261 $
Due To
Detail/Explanation Other Funds
Health Insurance Reserve Fund
General Fund Loan for short-term cash needs 63,261 $
Fund
Fund
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 57
Note 9. Interfund Activity (Continued)
Transfers In/Out
The interfund transfers for the year ended December 31, 2008, are as follows:
Detail Amount
General Fund
Waterworks and Sewerage Fund Administrative expenses 635,230$
Nonmajor Governmental Funds
General Fund Subsidy for street maintenance 1,364,197
General Fund Subsidy for capital projects funding 902,024
General Fund Debt service 500,000
Waterworks and Sewerage Fund Debt service 180,000
Arboretum Golf Course Fund Debt service 40,000
Nonmajor Governmental Fund Subsidy for street maintenance 500,000
Arboretum Golf Course Fund
General Fund Subsidy for operations 561,000
Nonmajor Enterprise Fund
General Fund Subsidy for operations 214,000
Total 4,896,451$
Receiving Fund/Disbursing Fund
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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 58
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 - May 1, 2007* 491,845 $
Claims incurred 2,910,738
Claims paid (2,915,767)
Unpaid claims liability - December 31, 2007 486,816 $
Unpaid claims liability - January 1, 2008 486,816 $
Claims incurred 4,051,848
Claims paid (4,312,412)
Unpaid claims liability - December 31, 2008 226,252 $
* Prior to May 1, 2007, the Village reported a fiscal year ending April 30. For the year ended April 30, 2007, the
Village incurred claims totaling $4,528,286, and paid claims totaling $4,401,397.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 59
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
- - 60
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, 2008:
Assets Liabilities and Net Assets
Current assets 5,237,757 $ Current liabilities 4,769,267 $
Restricted assets 952,279 Long-Term liabilities 6,832,203
Capital assets 12,739,965
Other assets 87,680 Total liabilities 11,601,470
Net assets 7,416,211
Total liabilities
Total Assets 19,017,681 $ and net assets 19,017,681 $
Summary of Revenues, Expenses and Changes in Net Assets for the year ended December 31, 2008:
Operating revenues 15,558,015 $
Operating expenses 16,058,907
Operating loss (500,892)
Nonoperating revenue (expenses) (810,472)
Net loss (1,311,364)
Net assets
Beginning 8,727,575
Ending 7,416,211 $
Complete financial statements for SWANCC can be obtained from the Agency's administrative office at 2700 Patriot
Boulevard, Suite 110, Glenview, Illinois 60026.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 61
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 $1,017,164 to SWANCC for the year ended
December 31, 2008.
The Village has committed to make payments to the Solid Waste Agency of Northern Cook County. The Village has
committed to pay approximately $1,000,000 annually. This amount has been calculated using the Village’s current
allocation percentage of 6.37%. In future years, this allocation percentage will be subject to change.
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
- - 62
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:
Village of Arlington Heights 35.50 %
Village of Buffalo Grove 17.99
Village of Palatine 28.23
Village of Wheeling 18.28
100.00 %
% Share
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 Buffalo Grove, Illinois
Notes to Financial Statements
- - 63
Note 11. Joint Ventures (Continued)
Summary Financial Information of Joint Venture for the fiscal year ended April 30, 2008:
Assets Liabilities and Net Assets
Current assets 3,569,246 $ Current liabilities 4,013,934 $
Restricted assets 11,403,464 Long-Term liabilities 9,834,244
Capital assets 38,474,336 Total Liabilities 13,848,178
Other assets 167,068
Net assets 39,765,936
Total Liabilities
Total Assets 53,614,114 $ and Net Assets 53,614,114 $
Total revenues 9,635,787 $
Total expenses 8,605,355
Change in net assets 1,030,432
Net assets
Beginning of year 38,735,504
End of year 39,765,936 $
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.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 64
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 $1,827,901 to NWWC for the year ended
December 31, 2008. The Village's equity interest in NWWC was $7,804,998 at December 31, 2008. 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
- - 65
Note 13. Pledged Revenues
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 year ended December 31, 2008, amounted to
$4,917,061, of which $785,069 (or 16%) was remitted to the local retailer. Municipal sales taxes totaling $31,758 was
due to the local retailer as of December 31, 2008, and is included in accounts payable on the statement of net assets.
Note 14. New Governmental Accounting Standards
The Governmental Accounting Standards Board (GASB) has issued the following statements:
Statement No. 51, Accounting and Financial Reporting for Intangible Assets, will be effective for the Village beginning
with its year ending December 31, 2010. The objective of this Statement is to establish accounting and financial
reporting requirements for intangible assets to reduce these inconsistencies, thereby enhancing the comparability of
the accounting and financial reporting of such assets among state and local governments.
Village of Buffalo Grove, Illinois
Notes to Financial Statements
- - 66
Note 14. New Governmental Accounting Standards (Continued)
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, will be effective for the Village
beginning with its year ending December 31, 2011. This Statement was issued to enhance the usefulness of fund
balance information by providing clearer fund balance classifications and by clarifying the existing fund type
definitions. This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the
extent to which a government is bound to observe constraints imposed on the use of the resources reported in
governmental funds.
Management has not currently determined what impact, if any, these Statements may have on its financial
statements.
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
Village of Buffalo Grove, Illinois
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund
Year Ended December 31, 2008
Original/Final Final Over/
Appropriations Budget Actual Under
Revenues
Charges for services -$ 1,281,425 $ 1,036,282 $ (245,143) $
Licenses and permits - 237,150 278,965 41,815
Fines and fees - 1,422,600 1,514,666 92,066
Property taxes - 9,878,159 9,984,535 106,376
Other taxes - 16,851,620 17,168,444 316,824
Investment income - 1,026,500 710,624 (315,876)
Miscellaneous - 626,440 1,452,574 826,134
Total revenues - 31,323,894 32,146,090 822,196
Expenditures
Current
General government 5,254,700 4,361,317 4,862,350 (501,033)
Public safety 29,250,091 20,402,391 20,099,369 303,022
Public works 7,210,372 5,940,803 7,309,675 (1,368,872)
Total expenditures 41,715,163 30,704,511 32,271,394 (1,566,883)
Excess (deficiency) of revenues
over expenditures (41,715,163) 619,383 (125,304) (744,687)
Other financing sources (uses)
Transfers in - 635,230 635,230 -
Transfers out (3,250,000) (2,414,550) (3,541,221) (1,126,671)
Total other financing sources (uses) (3,250,000) (1,779,320) (2,905,991) (1,126,671)
Net change in fund balance (44,965,163) $ (1,159,937) $ (3,031,295) (1,871,358) $
Fund balance - beginning 27,012,685
Fund balance - ending 23,981,390 $
See Note to Required Supplementary Information.
- 67 -
Village of Buffalo Grove, Illinois
Pension Benefits
Required Supplementary Information
Analysis of Funding Progress
December 31, 2008
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
2008 19,002,171 $ 25,777,985 $ 6,775,814 $ 73.71 % 8,663,075 $ 78.21 %
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
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
2007 34,503,602 $ 54,297,346 $ 19,793,744 $ 63.55 % 5,580,751 $ 354.68 %
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
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
2007 26,549,471 $ 39,224,368 $ 12,674,897 $ 67.69 % 4,859,001 $ 260.85 %
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
((2-1)/3)
UAAL as a
Percentage of
Covered
Payroll
UAAL as a
Percentage of
Covered
Payroll
Payroll
((2-1)/3)
((2-1)/3)
UAAL as a
Percentage of
Covered
- 68 -
Village of Buffalo Grove, Illinois
Pension Benefits
Required Supplementary Information
Employer Contributions
Year Ended December 31, 2008
Illinois Municipal Retirement Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2008 $ 907,890 100 %
2007 819,958 100
2006 800,153 100
2005 704,606 100
2004 666,772 100
2003 434,187 100
Police Pension Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2007 $ 1,754,664 106.5 %
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
Firefighters' Pension Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2007 $ 1,506,343 104.9 %
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
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Village of Buffalo Grove, Illinois
Other Post-Employment Benefits
Required Supplementary Information
Year Ended December 31, 2008
Analysis of Funding Progress UAAL
Unfunded as a
Actuarial Actuarial Percentage
Value Actuarial Accrued of Annual
Actuarial of Accrued Liability Funded Covered Covered
Valuation Assets Liability (UAAL) Ratio Payroll Payroll
Date (a) (b) (b) - (a) (a)/(b) (c) ((b - a) / c)
12/31/2007 - 1,718,898$ 1,718,898$ - % 18,725,417$ 9.18 %
Employer Contributions
Fiscal Year Required Percentage
Ending Contribution Contributed
12/31/2008 117,799 $ 43%
Information is presented for as many years as is available The Village implemented
GASB Statement No. 45 in fiscal year 2008.
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Village of Buffalo Grove, Illinois
Note to Required Supplementary Information
- - 71
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.
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS – COMBINING STATEMENTS
Village of Buffalo Grove, Illinois
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2008
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Assets
Cash and equivalents 1,370,508 $ 16,025 $ 2,083,667 $ 3,470,200 $
Investments
Receivables
Property taxes 1,481,921 791,885 - 2,273,806
Motor fuel tax 104,912 - - 104,912
Other - - 168,887 168,887
Total assets 2,957,341 $ 807,910 $ 2,252,554 $ 6,017,805 $
Liabilities
Accounts payable and accrued liabilities 267,911 $ -$ 341,376 $ 609,287 $
Deferred property taxes 1,449,929 774,743 - 2,224,672
Total liabilities 1,717,840 774,743 341,376 2,833,959
Fund Balances
Reserved for debt service - 33,167 - 33,167
Unreserved
Designated for employee benefits 985,206 - - 985,206
Undesignated 254,295 - 1,911,178 2,165,473
Total fund balances 1,239,501 33,167 1,911,178 3,183,846
Total liabilities and fund balances 2,957,341 $ 807,910 $ 2,252,554 $ 6,017,805 $
- 72 -
Village of Buffalo Grove, Illinois
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2008
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Projects Funds
Revenues
Charges for services 164,099 $ -$ -$ 164,099 $
Intergovernmental 1,134,407 - - 1,134,407
Property taxes 1,334,467 739,813 - 2,074,280
Investment income 21,798 4,523 53,299 79,620
Miscellaneous 51,057 - 577,481 628,538
Total revenues 2,705,828 744,336 630,780 4,080,944
Expenditures
Current
General government 596,612 - - 596,612
Public safety 399,635 - - 399,635
Public works 3,483,256 - - 3,483,256
Capital projects - - 1,286,175 1,286,175
Debt service
Principal - 1,150,000 - 1,150,000
Interest and fiscal charges - 379,501 - 379,501
Total expenditures 4,479,503 1,529,501 1,286,175 7,295,179
Deficiency of revenues over
expenditures (1,773,675) (785,165) (655,395) (3,214,235)
Other financing sources (uses)
Transfers in 1,864,197 720,000 902,024 3,486,221
Transfers out - - (500,000) (500,000)
Total other financing sources (uses) 1,864,197 720,000 402,024 2,986,221
Net change in fund balances 90,522 (65,165) (253,371) (228,014)
Fund balances - beginning 1,148,979 98,332 2,164,549 3,411,860
Fund balances - ending 1,239,501 $ 33,167 $ 1,911,178 $ 3,183,846 $
- 73 -
NONMAJOR SPECIAL REVENUE FUNDS
Illinois Municipal Retirement Fund - to account for revenues derived from a separate property tax levy and employee
contributions which are subsequently paid to the State sponsored Illinois Municipal Retirement Fund.
Motor Fuel Tax Fund - to account for allotment of motor fuel taxes. These allotments are received from the State of Illinois.
Parking Lot Fund - to account for revenues derived from daily parking fees along with the sale of bimonthly parking passes,
less expenditures required to maintain the lots at the Village’s mass transit train station site.
Retiree Health Savings Fund - to account for the accumulation of resources to be used for health care premiums and costs
to eligible personnel at appropriate amounts and times in the future. Resources are contributed by the Village along with
interest income.
Village of Buffalo Grove, Illinois
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2008
Illinois Motor Retiree
Municipal Fuel Parking Health
Retirement Tax Lot Savings Totals
Assets
Cash and equivalents 77,950 $ 134,915 $ 164,412 $ 993,231 $ 1,370,508 $
Receivables
Property taxes 1,481,921 - - - 1,481,921
Motor fuel tax - 104,912 - - 104,912
Total assets 1,559,871 $ 239,827 $ 164,412 $ 993,231 $ 2,957,341 $
Liabilities
Accounts payable and accrued liabilities 58,064 $ 192,556 $ 9,266 $ 8,025 $ 267,911 $
Deferred property taxes 1,449,929 - - - 1,449,929
Total liabilities 1,507,993 192,556 9,266 8,025 1,717,840
Fund Balances
Unreserved - designated for
employee benefits - - - 985,206 985,206
Unreserved - undesignated 51,878 47,271 155,146 - 254,295
Total fund balances 51,878 47,271 155,146 985,206 1,239,501
Total liabilities and fund balances 1,559,871 $ 239,827 $ 164,412 $ 993,231 $ 2,957,341 $
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Village of Buffalo Grove, Illinois
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2008
Illinois Motor Retiree
Municipal Fuel Parking Health
Retirement Tax Lot Savings Totals
Revenues
Charges for services -$ -$ 164,099 $ -$ 164,099 $
Intergovernmental - 1,134,407 - - 1,134,407
Property taxes 1,334,467 - - - 1,334,467
Investment income 199 645 - 20,954 21,798
Miscellaneous - 27,257 - 23,800 51,057
Total revenues 1,334,666 1,162,309 164,099 44,754 2,705,828
Expenditures
General government 402,373 - 180,636 13,603 596,612
Public safety 386,567 - - 13,068 399,635
Public works 550,516 2,914,130 - 18,610 3,483,256
Total expenditures 1,339,456 2,914,130 180,636 45,281 4,479,503
Deficiency of revenues
over expenditures (4,790) (1,751,821) (16,537) (527) (1,773,675)
Other financing sources
Transfers in - 1,864,197 - - 1,864,197
Net change in fund balances (4,790) 112,376 (16,537) (527) 90,522
Fund balances (deficit) - beginning 56,668 (65,105) 171,683 985,733 1,148,979
Fund balances - ending 51,878 $ 47,271 $ 155,146 $ 985,206 $ 1,239,501 $
- 75 -
Village of Buffalo Grove, Illinois
Illinois Municipal Retirement Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Revenues
Property taxes -$ 1,306,205 $ 1,334,467 $
Other taxes - 7,000 -
Investment income - 1,500 199
Total revenues - 1,314,705 1,334,666
Expenditures
General government 435,580 420,818 402,373
Public safety 418,470 404,288 386,567
Public works 595,950 575,754 550,516
Total expenditures 1,450,000 1,400,860 1,339,456
Net change in fund balance (1,450,000) $ (86,155) $ (4,790)
Fund balance - beginning 56,668
Fund balance - ending 51,878 $
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Village of Buffalo Grove, Illinois
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Revenues
Intergovernmental -$ 1,248,335 $ 1,134,407 $
Investment income - 200 645
Miscellaneous - 20,000 27,257
Total revenues - 1,268,535 1,162,309
Expenditures
Public works 3,200,000 2,990,000 2,914,130
Deficiency of revenues over expenditures (3,200,000) (1,721,465) (1,751,821)
Other financing sources
Transfers in - 1,641,550 1,864,197
Net change in fund balance (3,200,000) $ (79,915) $ 112,376
Fund balance (deficit) - beginning (65,105)
Fund balance - ending 47,271 $
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Village of Buffalo Grove, Illinois
Parking Lot Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Year Ended December 31, 2008
Original Final Final
Appropriations Appropriations Budget Actual
Revenues
Charges for services -$ -$ 130,580 $ 164,099 $
Expenditures
General government 178,045 208,000 169,046 180,636
Net change in fund balance (178,045) $ (208,000) $ (38,466) $ (16,537)
Fund balance - beginning 171,683
Fund balance - ending 155,146 $
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NONMAJOR DEBT SERVICE FUND
Facilities Development Fund - to accumulate monies for payment of the $4,500,000, 4.5%-4.9% General Corporate
Purpose Bond Series of 2001A, $5,485,000, 4.1%-4.4% General Corporate Purpose Refunding Bond Series of 2001B,
$1,000,000, 2.65%-4.1% General Corporate Purpose Bond Series 2002B and $2,600,000 General Corporate Purpose Bond
Series of 2003, 2.25%-3.25%. Amounts being accumulated are financed by a specific annual property tax levy and by
transfers from the General Fund.
Village of Buffalo Grove, Illinois
Debt Service Fund - Facilities Development Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Revenues
Property taxes -$ 737,904 $ 739,813 $
Investment income - 3,200 4,523
Total revenues - 741,104 744,336
Expenditures
Principal 1,200,000 1,150,000 1,150,000
Interest and fiscal charges 402,500 378,315 379,501
Total expenditures 1,602,500 1,528,315 1,529,501
Deficiency of revenues over expenditures (1,602,500) (787,211) (785,165)
Other financing sources
Transfers in - 755,000 720,000
Net change in fund balance (1,602,500) $ (32,211) $ (65,165)
Fund balance - beginning 98,332
Fund balance - ending 33,167 $
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NONMAJOR CAPITAL PROJECTS FUNDS
Street Maintenance Fund - to account for the costs of design, construction and construction engineering for various street
maintenance and construction projects. Financing is provided by bonded debt proceeds.
Facilities Development Fund - to account for the costs of constructing various Village facilities as defined and approved in
the Village’s annual capital improvement plan which is a five-year program adopted annually by the Village. Financing was
provided for the most part by operating transfers from the General Fund along with bonded debt proceeds.
Village of Buffalo Grove, Illinois
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2008
Street Facilities
Maintenance Development Totals
Assets
Cash and equivalents 1,919,439 $ 164,228 $ 2,083,667 $
Receivables
Other - 168,887 168,887
Total assets 1,919,439 $ 333,115 $ 2,252,554 $
Liabilities
Accounts payable and accrued liabilities 24,731 $ 316,645 $ 341,376 $
Fund Balances
Unreserved, undesignated 1,894,708 16,470 1,911,178
Total liabilities and fund balances 1,919,439 $ 333,115 $ 2,252,554 $
- 80 -
Village of Buffalo Grove, Illinois
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Year Ended December 31, 2008
Street Facilities
Maintenance Development Totals
Revenues
Investment income 53,299 $ -$ 53,299 $
Miscellaneous 408,593 168,888 577,481
Total revenues 461,892 168,888 630,780
Expenditures
Capital projects 249,490 1,036,685 1,286,175
Excess/(Deficiency) of revenues over expenditures 212,402 (867,797) (655,395)
Other financing sources (uses)
Transfers in - 902,024 902,024
Transfers out (500,000) - (500,000)
Total other financing sources (uses) (500,000) 902,024 402,024
Net change in fund balances (287,598) 34,227 (253,371)
Fund balances (deficit) - beginning 2,182,306 (17,757) 2,164,549
Fund balances - ending 1,894,708 $ 16,470 $ 1,911,178 $
- 81 -
Village of Buffalo Grove, Illinois
Street Maintenance Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Revenues
Investment income -$ 34,020 $ 53,299 $
Miscellaneous - 1,116,500 408,593
Total revenues - 1,150,520 461,892
Expenditures
Capital projects 3,425,000 2,739,444 249,490
Excess (Deficiency) of revenues over expenditures (3,425,000) (1,588,924) 212,402
Other financing uses
Transfers out - (500,000) (500,000)
Net change in fund balance (3,425,000) $ (2,088,924) $ (287,598)
Fund balance - beginning 2,182,306
Fund balance - ending 1,894,708 $
- 82 -
Village of Buffalo Grove, Illinois
Facilities Development Fund
Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Revenues
Miscellaneous -$ 2,250,000 $ 168,888 $
Expenditures
Capital projects 3,870,000 1,689,000 1,036,685
Deficiency of revenues over expenditures (3,870,000) 561,000 (867,797)
Other financing sources
Transfers in - 689,000 902,024
Net change in fund balance (deficit)(3,870,000) $ 1,250,000 $ 34,227
Fund balance (deficit) - beginning (17,757)
Fund balance - ending 16,470 $
- 83 -
ENTERPRISE FUNDS
Major Funds:
Waterworks and Sewerage Fund - to account for the provision of water and sewer services to all residential and
commercial/industrial customers of the Village. All activities necessary to provide such services are accounted for in this
fund including, but not limited to, administration, operations, maintenance, related debt service and billing and collection.
Arboretum Golf Course Fund - to account 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.
Nonmajor Funds:
Buffalo Grove Golf Course Fund - to account for the operation of the Buffalo Grove 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.
Refuse Service Fund - to account for the provision of refuse disposal services to all customers of the Village. All activities
necessary to provide such services are accounted for in this fund.
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)
Year Ended December 31, 2008
Original Final Final
Appropriations Appropriations Budget Actual
Operating revenues
Water and sewerage charges -$ -$ 6,702,560 $ 7,202,622 $
Connection and recapture fees - - 73,150 335,912
Total operating revenues - - 6,775,710 7,538,534
Operating expenses excluding depreciation 6,900,985 7,900,985 6,983,928 7,882,368
Less capital assets capitalized (700,000) (700,000) (552,245) (318,090)
Total operating expenses
(excluding depreciation)6,200,985 7,200,985 6,431,683 7,564,278
Nonoperating revenues
Investment income - - 380,000 266,479
- - 380,000 266,479
Transfers out (815,230) (815,230) (815,230) (815,230)
- 84 -
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)
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Operating revenues
Daily greens fees and memberships -$ 855,000 $ 724,939 $
Merchandise sales - 70,000 55,681
Cart, club and other rentals - 315,500 283,696
Miscellaneous - 64,300 37,171
Total operating revenues - 1,304,800 1,101,487
Operating expenses excluding depreciation
Golf operations 1,353,095 1,261,540 1,348,964
Cost of sales - pro shop 70,000 60,000 61,247
1,423,095 1,321,540 1,410,211
Capital assets capitalized (62,000) (50,000) -
Total operating expenses (excluding depreciation) 1,361,095 1,271,540 1,410,211
Nonoperating revenues (expenses)
Interest income - 3,000 -
Other - - 1,660
Net nonoperating revenues (expenses) - 3,000 1,660
Transfers in - 139,000 561,000
Transfers out (85,000) (75,000) (40,000)
- 85 -
Village of Buffalo Grove, Illinois
Nonmajor Enterprise Funds
Combining Statement of Net Assets
December 31, 2008
Buffalo Grove Refuse
Golf Course Service Totals
Assets
Current
Cash and equivalents 2,504 $ 69,117 $ 71,621 $
Pro shop inventory 18,943 - 18,943
Total current assets 21,447 69,117 90,564
Noncurrent
Capital assets (net of accumulated depreciation)
Land 978,776 - 978,776
Buildings 383,576 - 383,576
Land improvements 18,307 - 18,307
Total noncurrent assets 1,380,659 - 1,380,659
Total assets 1,402,106 $ 69,117 $ 1,471,223 $
Liabilities
Current
Accounts payable and accrued liabilities 53,759 $ 2 $ 53,761 $
Net Assets
Invested in capital assets, net of related debt 1,380,659 - 1,380,659
Unrestricted (32,312) 69,115 36,803
Total net assets 1,348,347 $ 69,115 $ 1,417,462 $
- 86 -
Village of Buffalo Grove, Illinois
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Net Assets
Year Ended December 31, 2008
Buffalo Grove Refuse
Golf Course Service Totals
Operating revenues
Daily greens fees and memberships 847,268 $ -$ 847,268 $
Merchandise sales 82,907 - 82,907
Cart, club and other rentals 251,370 - 251,370
Driving range fees 59,622 - 59,622
SWANCC user fees - 923,207 923,207
Miscellaneous 14,308 - 14,308
Total operating revenues 1,255,475 923,207 2,178,682
Operating expenses excluding depreciation
Golf operations 1,320,208 - 1,320,208
Cost of sales - pro shop 68,697 - 68,697
Refuse operations - 1,017,164 1,017,164
Total operating expenses excluding depreciation 1,388,905 1,017,164 2,406,069
Operating loss before depreciation (133,430) (93,957) (227,387)
Depreciation 119,997 - 119,997
Operating loss (253,427) (93,957) (347,384)
Nonoperating revenues
Investment income 784 - 784
Loss before transfer (252,643) (93,957) (346,600)
Transfer in 214,000 - 214,000
Change in net assets (38,643) (93,957) (132,600)
Net assets - beginning 1,386,990 163,072 1,550,062
Net assets - ending 1,348,347 $ 69,115 $ 1,417,462 $
- 87 -
Village of Buffalo Grove, Illinois
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
Year Ended December 31, 2008
Buffalo Grove Refuse
Golf Course Service Totals
Cash flows from operating activities
Cash received for golf activities 1,255,475 $ -$ 1,255,475 $
Cash received for refuse services - 923,207 923,207
Payments to employees (798,751) - (798,751)
Payments to suppliers (669,004) (1,019,138) (1,688,142)
Net cash flows from operating actiivities (212,280) (95,931) (308,211)
Cash flows from noncapital financing activities
Transfers in 214,000 - 214,000
Cash flows from investing activities
Interest received 784 - 784
Net increase (decrease) in cash and equivalents 2,504 (95,931) (93,427)
Cash and equivalents - beginning - 165,048 165,048
Cash and equivalents - ending 2,504 $ 69,117 $ 71,621 $
Reconciliation of operating loss to net cash
flows from operating activities
Operating loss (253,427) $ (93,957) $ (347,384) $
Adjustments to reconcile operating loss to
net cash flows from operating activities
Depreciation 119,997 - 119,997
Changes in assets and liabilities
Inventory 1,834 - 1,834
Accounts payable and accrued liabilities (6,108) (1,974) (8,082)
Due to other funds (74,576) - (74,576)
Total adjustments 41,147 (1,974) 39,173
Net cash flows from operating activities (212,280) $ (95,931) $ (308,211) $
- 88 -
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)
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Operating revenues
Daily greens fees and memberships -$ 940,000 $ 847,268 $
Merchandise sales - 80,000 82,907
Cart, club and other rentals - 292,600 251,370
Driving range fees - 68,000 59,622
Miscellaneous - 32,700 14,308
Total operating revenues - 1,413,300 1,255,475
Operating expenses excluding depreciation
Golf operations 1,403,650 1,294,721 1,320,208
Cost of sales - pro shop 75,000 65,000 68,697
1,478,650 1,359,721 1,388,905
Less capital assets capitalized (56,000) (45,000) -
Total operating expenses (excluding depreciation) 1,422,650 1,314,721 1,388,905
Nonoperating revenues
Interest income - 3,500 784
Transfers in - - 214,000
Transfers out (90,000) (55,000) -
- 89 -
Village of Buffalo Grove, Illinois
Refuse Service Fund
Schedule of Operating Revenues and Operating Expenses
- Budget and Actual (Budgetary Basis)
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Operating revenues
SWANCC user fees -$ 915,192 $ 923,207 $
Operating expenses
Refuse operations 1,200,000 1,016,312 1,017,164
- 90 -
TRUST AND AGENCY FUNDS
Pension Trust
Police Pension Fund - to account for the accumulation of resources to be used for disability and retirement annuity
payments to uniformed police department personnel at appropriate amounts and times in the future. Resources are
contributed by employees along with interest income and by property tax levies.
Firefighters' Pension Fund - to account for the accumulation of resources to be used for disability and retirement annuity
payments to uniformed fire department personnel at appropriate amounts and times in the future. Resources are contributed
by employees along with interest income and by property tax levies.
Agency
School and Park District Donations Fund - to account for monies deposited by developers for local schools and park
districts. These funds are deposited with the Village and later remitted to the applicable school or park district.
Village of Buffalo Grove, Illinois
Fiduciary Funds
Combining Statement of Fiduciary Net Assets - Pension Trust Funds
December 31, 2008
Police Firefighters'
Pension Pension Total
Assets
Cash and equivalents 9,217,390 $ 2,882,926 $ 12,100,316 $
Investments
Certificates of deposit - 8,514,000 8,514,000
U.S. government and agency obligations 17,060,976 4,150,500 21,211,476
Open-end mutual funds 5,710,757 7,434,068 13,144,825
Receivables
Pension contributions 1,754,664 1,506,343 3,261,007
Interest - 66,275 66,275
Total assets 33,743,787 24,554,112 58,297,899
Liabilities
Accounts payable 7,374 829 8,203
Net Assets
Held in trust for pension benefits
(Schedules of funding progress for the
plans are presented in the required
supplementary information section.)33,736,413 $ 24,553,283 $ 58,289,696 $
- 91 -
Village of Buffalo Grove, Illinois
Fiduciary Funds
Combining Statement of Changes in Fiduciary Net Assets - Pension Trust Funds
Year Ended December 31, 2008
Police Firefighters'
Pension Pension Totals
Additions
Contributions
Employer 1,868,998 $ 1,580,625 $ 3,449,623 $
Participants 556,685 465,251 1,021,936
2,425,683 2,045,876 4,471,559
Investment income (loss)
Net depreciation in fair
value of investments (1,943,625) (3,985,251) (5,928,876)
Interest income 208,854 451,992 660,846
Less investment expense (44,047) (47,507) (91,554)
(1,778,818) (3,580,766) (5,359,584)
Total additions 646,865 (1,534,890) (888,025)
Deductions
Administration 19,083 26,774 45,857
Pension benefits and refunds 1,394,971 434,524 1,829,495
Total deductions 1,414,054 461,298 1,875,352
Change in net assets (767,189) (1,996,188) (2,763,377)
Net assets - beginning 34,503,602 26,549,471 61,053,073
Net assets - ending 33,736,413 $ 24,553,283 $ 58,289,696 $
- 92 -
Village of Buffalo Grove, Illinois
Police Pension Fund
Schedule of Changes in Fiduciary Net Assets - Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Additions
Contributions
Employer -$ 1,587,542 $ 1,868,998 $
Participants - 597,995 556,685
- 2,185,537 2,425,683
Investment income (loss)
Net appreciation (depreciation)
in fair value of investments - 916,420 (1,943,625)
Interest income - 230,250 208,854
Less investment expense - - (44,047)
- 1,146,670 (1,778,818)
Total additions - 3,332,207 646,865
Deductions
Administration 75,000 50,000 19,083
Pension benefits and refunds 1,450,000 1,384,243 1,394,971
Total deductions 1,525,000 1,434,243 1,414,054
Change in net assets (1,525,000) $ 1,897,964 $ (767,189)
Net assets - beginning 34,503,602
Net assets - ending 33,736,413 $
- 93 -
Village of Buffalo Grove, Illinois
Firefighters' Pension Fund
Schedule of Changes in Fiduciary Net Assets - Budget and Actual
Year Ended December 31, 2008
Original/Final Final
Appropriations Budget Actual
Additions
Contributions
Employer -$ 1,329,136 $ 1,580,625 $
Participants - 492,999 465,251
- 1,822,135 2,045,876
Investment income (loss)
Net appreciation (depreciation)
in fair value of investments - 398,850 (3,985,251)
Interest income - 445,150 451,992
Less investment expense - - (47,507)
- 844,000 (3,580,766)
Total additions - 2,666,135 (1,534,890)
Deductions
Administration 75,000 60,000 26,774
Pension benefits and refunds 500,000 421,612 434,524
Total deductions 575,000 481,612 461,298
Change in net assets (575,000) $ 2,184,523 $ (1,996,188)
Net assets - beginning 26,549,471
Net assets - ending 24,553,283 $
- 94 -
Village of Buffalo Grove, Illinois
Agency Fund - School and Park Donations
Statement of Changes in Assets and Liabilities
Year Ended December 31, 2008
Balances Balances
January 1 Additions Deductions December 31
Assets
Cash and equivalents 423,141 $ 87,500 $ 104,448 $ 406,193 $
Liabilities
Due to other governments 423,141 $ 87,500 $ 104,448 $ 406,193 $
- 95 -
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
Village of Buffalo Grove, Illinois
Capital Assets Used in the Operation of Governmental Funds
Schedule of Capital Assets by Source
December 31, 2008
Assets
Governmental funds capital assets
Land 35,963,844 $
Construction in progress 778,042
Buildings 20,832,378
Equipment and vehicles 10,415,598
Streets 19,040,719
Storm sewers 37,665,289
Total governmental funds capital assets 124,695,870 $
Investment in Governmental Funds Capital Assets By Source
Capital projects 5,186,240 $
From current revenues 5,412,227
Debt issuance 20,449,070
Contributions 93,648,333
Total governmental funds capital assets 124,695,870 $
- 96 -
Village of Buffalo Grove, Illinois
Capital Assets Used in the Operation of Governmental Funds
Schedule by Function and Activity
December 31, 2008
Construction in Equipment and Storm
Land Progress Buildings Vehicles Streets Sewers Total
General government 6,254,297 $ 139,219 $ 6,834,108 $ 1,150,453 $ -$ -$ 14,378,077 $
Public safety - 83,333 9,652,448 5,282,572 - - 15,018,353
Public works 29,709,547 555,490 4,345,822 3,982,573 19,040,719 37,665,289 95,299,440
35,963,844 $ 778,042 $ 20,832,378 $ 10,415,598 $ 19,040,719 $ 37,665,289 $ 124,695,870 $
- 97 -
Village of Buffalo Grove, Illinois
Capital Assets Used in the Operation of Governmental Funds
Schedule of Changes by Function and Activity
Year Ended December 31, 2008
Balance Balance
January 1, December 31,
2008 Additions Deletions 2008
General government 14,224,079 $ 332,102 $ 178,104 $ 14,378,077 $
Public safety 14,639,895 571,370 192,912 15,018,353
Public works 94,574,114 804,048 78,722 95,299,440
123,438,088 $ 1,707,520 $ 449,738 $ 124,695,870 $
- 98 -
STATISTICAL SECTION
(UNAUDITED)
The information in this section differs from financial statements in that it usually covers a period of time more than two fiscal
years and may contain data not related to accounting. The purpose of the financial statements is, among other things, to
show that legal provisions have been complied with and that all funds have been properly accounted for. Statistical tables
reflect social and economic data, financial trends and the fiscal capacity of the Village.
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 99 - 104
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 105 - 109
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 110 - 114
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 115 - 117
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 118 - 119
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 Six Fiscal Years*
2004 2005 2006 2007 2007* 2008
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$ 53,551,265$
Restricted 4,368,460 4,955,378 1,425,988 1,294,897 33,167 80,438
Unrestricted 34,708,597 34,551,091 37,786,827 35,512,486 27,184,985 23,259,339
Total Governmental Activities 87,086,947$ 88,770,584$ 92,401,406$ 90,534,312$ 80,920,636$ 76,891,042$
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$ 41,374,269$
Restricted - - - - - -
Unrestricted 17,690,967 18,375,098 18,300,838 18,553,703 17,509,194 17,003,316
Total Business-type Activities 63,182,743$ 62,498,512$ 61,946,971$ 61,221,229$ 60,176,934$ 58,377,585$
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$ 94,925,534$
Restricted 4,368,460 4,955,378 1,425,988 1,294,897 33,167 80,438
Unrestricted 52,399,564 52,926,189 56,087,665 54,066,189 44,694,179 40,262,655
Total Primary Government 150,269,690$ 151,269,096$ 154,348,377$ 151,755,541$ 141,097,570$ 135,268,627$
Data Source
Audited Financial Statements
*Transitional fiscal year May 1, 2007 through December 31, 2007
Fiscal Year
- 99 -
Village of Buffalo Grove, Illinois
Change in Net Assets
Last Six Fiscal Years
2004 2005 2006 2007 2007* 2008
Expenses
Governmental Activities
General Government 4,749,920$ 4,701,408$ 4,582,741$ 4,686,330$ 4,019,032$ 5,705,497$
Public Safety 16,396,186 16,822,265 18,137,721 18,951,546 15,324,061 21,115,737
Public Works 9,550,018 9,523,240 11,441,440 12,479,424 8,232,685 13,222,026
Interest 877,924 994,708 1,217,883 529,858 216,379 379,501
Total Governmental Activities Expenses 31,574,048 32,041,621 35,379,785 36,647,158 27,792,157 40,422,761
Business-type Activities
Water and Sewer 6,843,943 6,780,153 7,168,405 7,256,639 5,165,701 8,684,651
Refuse Service 936,573 971,980 956,915 1,024,248 777,716 1,017,164
Golf Courses 3,236,932 3,101,134 3,333,644 3,102,770 2,637,072 3,423,903
Total Business-type Activities Expenses 11,017,448 10,853,267 11,458,964 11,383,657 8,580,489 13,125,718
Total Primary Government Expenses 42,591,496$ 42,894,888$ 46,838,749$ 48,030,815$ 36,372,646$ 53,548,479$
Program Revenues
Governmental Activities
Charges for Services
General Government 1,802,120$ 1,683,585$ 2,048,850$ 1,880,714$ 1,139,242$ 1,211,188$
Public Safety 1,358,439 1,476,845 1,553,949 1,525,943 1,050,920 1,514,666
Public Works 192,193 - - - 94,670 94,670
Operating Grants and Contributions 1,218,020 - - 1,532,557 950,383 1,307,895
Capital Grants and Contributions - - - - - -
Total Governmental Activities
Program Revenues 4,570,772 3,160,430 3,602,799 4,939,214 3,235,215 4,128,419
Business-type Activities
Charges for Services
Water and Sewer 6,322,045 6,279,172 7,688,143 6,694,051 4,799,193 7,538,534
Refuse Service 957,435 975,290 990,113 991,140 704,841 923,207
Golf Courses 2,592,370 2,637,717 2,567,759 2,323,919 2,141,860 2,356,962
Operating Grants and Contributions 1,106,103 1,915,746 1,444,395 - - -
Capital Grants and Contributions 2,361,256 760,726 1,867,859 450,000 497,875 133,599
Total Business-type Activities
Program Revenues 13,339,209 12,568,651 14,558,269 10,459,110 8,143,769 10,952,302
Total Primary Government Program
Revenues 17,909,981$ 15,729,081$ 18,161,068$ 15,398,324$ 11,378,984$ 15,080,721$
Net (Expense) Revenue
Governmental Activites (27,003,276)$ (28,881,191)$ (31,776,986)$ (31,707,944)$ (24,556,942)$ (36,294,342)$
Business-type Activities 2,321,761 1,715,384 3,099,305 (924,547) (436,720) (2,173,416)
Total Primary Government Net (Expense)
Revenue (24,681,515)$ (27,165,807)$ (28,677,681)$ (32,632,491)$ (24,993,662)$ (38,467,758)$
(Continued)
Fiscal Year Ended
- 100 -
Village of Buffalo Grove, Illinois
Change in Net Assets (Continued)
Last Six Fiscal Years
2004 2005 2006 2007 2007* 2008
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$ 12,058,815$
Sales 6,349,520 7,960,163 8,800,041 8,619,267 5,741,981 8,436,647
Income and Use 3,001,889 3,433,471 3,855,616 4,280,237 2,725,204 4,646,776
Telecommunications 2,624,965 2,442,641 2,230,092 2,436,233 1,967,348 2,417,496
Property Transfer 1,253,906 1,212,292 1,346,946 980,213 600,379 590,596
Other 253,516 291,839 293,990 273,335 247,827 1,076,929
Investment Earnings 430,943 599,072 1,109,664 1,636,589 958,715 810,982
Miscellaneous 751,134 1,058,732 1,126,625 855,100 1,254,948 2,081,112
Transfers (203,740) 414,760 784,625 544,950 899,950 80,230
Proceeds from Insurance Pool - - 925,867 - - -
Total Governmental Activities 26,251,108 28,281,794 32,095,554 29,840,850 15,103,101 32,199,583
Business-type Activities
Property 114,998 122,832 82,989 166,007 - -
Investment Earnings 122,106 175,347 363,044 445,766 292,375 267,263
Miscellaneous - - - 131,982 - 187,034
Transfers 203,740 (414,760) (784,625) (544,950) (899,950) (80,230)
Total Business-type Activities 440,844 (116,581) (338,592) 198,805 (607,575) 374,067
Total Primary Government 26,691,952$ 28,165,213$ 31,756,962$ 30,039,655$ 14,495,526$ 32,573,650$
Change in Net Assets
Governmental Activities (752,168)$ (599,397)$ 318,568$ (1,867,094)$ (9,453,841)$ (4,094,759)$
Business-type Activities 2,762,605 1,598,803 2,760,713 (725,742) (1,044,295) (1,799,349)
Total Primary Government Change
in Net Assets 2,010,437$ 999,406$ 3,079,281$ (2,592,836)$ (10,498,136)$ (5,894,108)$
Data Source
Audited Financial Statements
*Transitional fiscal year May 1, 2007 through December 31, 2007
Fiscal Year
- 101 -
Village of Buffalo Grove, Illinois
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2000 2001 2002 2003 2004 2005 2006 2007 2007* 2008
General Fund
Reserved 1,600,275$ 1,658,164$ 1,623,983$ 1,155,677$ 1,339,393$ 1,524,130$ 1,787,884$ 1,846,137$ 1,846,137$ 1,536,571$
Unreserved 17,757,362 19,770,340 26,232,523 22,975,100 23,556,556 23,935,055 27,252,660 27,556,199 27,556,199 22,444,819
Total General Fund 19,357,637 21,428,504 27,856,506 24,130,777 24,895,949 25,459,185 29,040,544 29,402,336 29,402,336 23,981,390
All Other Governmental Funds
Reserved 3,221,595 3,891,877 4,560,473 4,238,926 4,311,770 4,543,605 499,743 486,946 486,946 33,167
Unreserved, reported in
Special Revenue Funds 1,109,270 1,347,688 239,505 988,142 953,672 1,496,628 1,813,406 1,942,258 1,942,258 1,239,501
Capital Project Funds 2,503,977 6,496,954 5,303,373 3,732,973 3,618,540 3,928,552 3,888,047 2,436,815 2,436,815 1,911,178
Total All Other Governmental Funds 6,834,842$ 11,736,519$ 10,103,351$ 8,960,041$ 8,883,982$ 9,968,785$ 6,201,196$ 4,866,019$ 4,866,019$ 3,183,846$
Data Source
Audited Financial Statements
*Transitional fiscal year May 1, 2007 through December 31, 2007
Fiscal Year
- 102 -
Village of Buffalo Grove, Illinois
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
2000 2001 2002 2003 2004 2005 2006 2007 2007* 2008
Revenues
Property Taxes 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$ 12,058,815$
Other Taxes 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 17,168,444
Licenses and Permits 1,513,789 1,487,324 1,361,482 1,724,062 764,834 860,838 836,279 825,691 245,148 278,965
Intergovernmental 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 1,134,407
Fines and Forfeitures 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 1,514,666
Charges for Services 607,188 628,471 358,808 693,936 1,386,951 822,748 1,414,337 1,334,260 1,028,810 1,200,381
Investment Income 1,511,152 1,770,949 1,176,088 622,866 430,943 599,072 1,094,843 1,562,291 911,444 790,244
Miscellaneous 2,518,759 916,779 704,610 208,422 902,824 1,058,732 1,126,625 855,101 1,254,948 2,081,112
Total Revenues 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 36,227,034
Expenditures
General Government 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 5,458,962
Public Safety 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 20,499,004
Public Works 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 10,792,931
Capital Outlay 881,054 1,558,890 3,279,431 6,065,692 1,498,844 750,020 2,285,510 1,945,053 502,701 1,286,175
Debt Service
Principal 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 1,150,000
Interest 1,389,733 1,251,789 1,075,663 1,220,546 998,046 905,008 1,440,436 476,736 424,220 379,501
Other Charges - 199,508 90,148 - - - - - - -
Total Expenditures 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 39,566,573
Excess of Revenues over (under)
Expenditures (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) (3,339,539)
(Continued)
Fiscal Year
- 103 -
Village of Buffalo Grove, Illinois
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
2000 2001 2002 2003 2004 2005 2006 2007 2007* 2008
Other financing Sources (Uses)
Transfers In 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 4,121,451
Transfers Out (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) (4,041,221)
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) 383,380 5,047,262 1,634,709 3,110,144 6,624,120 414,760 690,497 794,950 899,950 80,230
Net Change in Fund Balances (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)$ (3,259,309)$
Debt Service as a Percentage of
Noncapital Expenditures 13.89% 12.78% 13.00% 14.72% 14.23% 13.26% 20.02% 5.01% 6.52% 4.00%
Data Source
Audited Financial Statements
*Transitional fiscal year May 1, 2007 through December 31, 2007
Fiscal Year
- 104 -
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
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 1,454,038,913 339,683,354 16,474,758 624,450 1,810,821,475 0.6490 5,432,464,425 33.333%
2008 1,483,527,804 364,403,255 5,048,950 804,975 1,853,784,984 * N/A 5,561,354,952 33.333%
Data Source
Office of the Cook and Lake County Clerks
Total Direct Tax Rated is weighted for both Cook and Lake Counties
* Cook County property class and assessed valuation is an estimate. Cook County information is not yet available.
- 105 -
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
Lake County (2)
Village of Buffalo Grove 0.665 0.649 0.633 0.608 0.603 0.615 0.626 0.647 0.637 0.653
County, including Forest Preserve District 0.652 0.645 0.654 0.664 0.684 0.715 0.734 0.799 0.752 0.708
Combined school districts (District #96,
District #125 and District #532) 5.102 5.066 5.318 5.234 5.3 5.144 5.077 5.026 5.199 4.894
Buffalo Grove Park District 0.370 0.380 0.403 0.375 0.349 0.387 0.365 0.355 0.426 0.447
Indian Trails Public Library District 0.222 0.219 0.317 0.223 0.325 0.265 0.267 0.316 0.305 0.280
All other 0.092 0.092 0.094 0.093 0.12 0.101 0.105 0.043 0.152 0.115
Total 7.103 7.051 7.419 7.197 7.381 7.227 7.174 7.186 7.471 7.097
Percentage change - year-to-year 0.74% -4.96% 3.08% (2.00%) 2.13% 0.74% (0.17%) (3.81%) 5.27 0.01
Cook County
Village of Buffalo Grove 0.729 0.731 0.726 0.785 0.807 0.714 0.728 0.855 0.818
County, including Forest Preserve District n/a 0.499 0.557 0.607 0.662 0.728 0.751 0.82 0.901 0.924
Metropolitan Water Reclamation District of
Greater Chicago n/a 0.263 0.284 0.315 0.347 0.361 0.371 0.401 0.415 0.419
Combined school districts (District #21,
District #214 and District #512) n/a 5.035 5.613 5.434 5.359 5.867 5.449 5.183 5.458 5.528
Buffalo Grove Park District n/a 0.416 0.455 0.435 0.457 0.498 0.407 0.422 0.486 0.386
Indian Trails Public Library District n/a 0.297 0.320 0.312 0.323 0.335 0.304 0.281 0.314 0.304
All other n/a 0.079 0.080 0.076 0.064 0.074 0.075 0.103 0.424 0.126
Total n/a 7.318 8.040 7.905 7.997 8.67 8.071 7.938 8.853 8.505
Percentage change - year-to-year n/a (8.98%) 1.71% (1.15%) (7.76%) 7.42% 1.68% (10.34%) 4.09% (1.15%)
Notes:
(1) Taxes levied on a calendar year basis for collection in the subsequent fiscal year.
(2) 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
Village of Buffalo Grove, Illinois
Property Tax Rates - Direct and Overlapping Governments
Last Ten Levy Years
Comparative Tax Rates (Per $100 Assessed and Equalized Valuation)
- 106 -
Percentage Percentage
of Total of Total
Village Village
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Amli at Chevy Chase, LP 22,307,549$ 1 1.23% 13,810,599$ 2 1.05%
Chevy Chase Business Park 18,960,235 2 1.05% 13,030,188 3 0.99%
Hamilton Partners (1) 12,986,131 3 0.72% 15,029,138 1 1.14%
Millbrook 11,978,786 4 0.66% - 0.00%
Penobscot Management (3) 9,405,158 5 0.52% 8,264,390 6 0.63%
Riverwalk South LLC (2) 9,241,551 6 0.51% 10,786,360 4 0.82%
Rogers Center for Commerce (4) 9,012,393 7 0.50% 8,340,994 5 0.63%
Remax Consumer Plastics, Inc. 7,355,354 8 0.41% - 0.00%
Inland Woodland LLC 6,464,954 9 0.36% - 0.00%
NTL Shopping Plaza Inc. 6,289,692 10 0.35% - 0.00%
Manufacturer's Life Insurance - 0.00% 5,988,180 10 0.45%
Inland Real Estate Group - 0.00% 7,193,965 7 0.55%
American National Bank - 0.00% 6,332,947 8 0.48%
Courtesy Corporation - 0.00% 6,013,044 9 0.46%
114,001,803$ 6.30% 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 Six Years Ago
2008 2002*
- 107 -
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
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%
2007 9,137,324 9,133,824 99.96% 2,937,238 2,932,507 99.84% 12,066,331 99.93%
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.
2008 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
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Village of Buffalo Grove, Illinois
Sales Tax Revenue and Number of Principal Payers
Revenue by Category
Last Ten Calendar Years
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
General Merchandise -$ -$ -$ -$ -$ 4,614$ 1,662$ 1,346$ 3,793$ 5,819$
Food 1,290,692 1,283,824 1,248,750 1,238,333 1,206,548 1,256,331 1,360,403 1,340,177 1,371,195 1,415,835
Drinking and Eating Places 527,728 574,975 572,107 559,474 630,398 833,941 932,646 924,738 874,307 906,628
Apparel 129,950 94,798 51,710 48,015 47,529 81,888 100,045 67,072 110,386 104,376
Furniture & H.H. & Radio 576,811 487,403 498,596 405,114 455,215 456,248 534,243 530,825 422,342 521,316
Lumber, Building, Hardware 44,313 43,051 2,259,554 2,214,964 2,388,782 3,279,174 3,666,077 3,326,323 2,181,496 1,379,764
Automobile and Filling Stations 1,323,341 1,291,260 1,337,169 1,148,487 1,151,643 1,266,367 1,459,577 1,581,217 1,715,400 1,177,121
Drugs and Miscellaneous Retail 708,883 833,344 815,961 786,327 829,971 929,343 1,088,992 1,206,917 1,237,894 1,285,513
Agriculture and All Others 2,904,980 1,704,271 1,953,994 1,333,021 1,127,987 1,258,957 1,744,041 1,755,277 1,777,144 2,082,955
Manufacturers 72,897 122,859 175,162 132,869 182,256 498,294 502,410 438,024 338,494 390,034
Total 7,579,595$ 6,435,786$ 8,913,003$ 7,866,603$ 8,020,330$ 9,865,159$ 11,390,098$ 11,171,916$ 10,032,451$ 9,269,361$
Total Number of Payers 1,169 1,101 1,094 1,174 1,213 1,189 1,271 1,311 1,196 1,002
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%
Village home rule tax rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 1.00% 1.00% 1.00% 1.00%
Data Source
Illinois Department of Revenue
Cook and Lake Counties
N/A - not yet available.
Note: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers
Calendar Year
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Village of Buffalo Grove, Illinois
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Village State of Illinois
Fiscal Direct Sales Tax
Year Rate Rate
2000 0.05% 6.50%
2001 0.05% 6.50%
2002 0.05% 6.50%
2003 0.05% 6.50%
2004 1.00% 6.50%
2005 1.00% 6.50%
2006 1.00% 6.50%
2007 1.00% 6.50%
2007* 1.00% 6.50%
2008 1.00% 6.50%
Data Source
Illinois Department of Revenue
*Transitional fiscal year May 1, 2007 through December 31, 2007
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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)
4/30/00 7,965,384$ 7,885,000$ 8,575,000$ 2,604,616$ -$ 27,030,000$ 2.51% 629.15$
4/30/01 12,050,984 7,360,000 7,390,000 2,019,016 - 28,820,000 2.60% 654.33
4/30/02 12,374,070 6,490,000 6,045,000 1,710,930 - 26,620,000 2.19% 603.68
4/30/03 14,201,820 5,505,000 4,635,000 1,367,443 - 25,709,263 1.95% 580.95
4/30/04 13,530,660 4,150,000 3,140,000 1,034,647 - 21,855,307 1.57% 491.20
4/30/05 12,597,846 3,400,000 1,460,000 689,303 - 18,147,149 1.22% 407.59
4/30/06 11,437,146 - - 345,003 - 11,782,149 0.73% 262.05
4/30/07 10,202,381 - - 174,768 - 10,377,149 0.62% 230.52
12/31/07* 8,890,000 - - - - 8,890,000 0.49% 197.48
12/31/08 7,740,000 - - - - 7,740,000 0.35% 175.91
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 for equalized assessed valuation of property and population data.
Personal income information is not available.
*Transitional fiscal year May 1, 2007 through December 31, 2007
December 31, 2007 represents an eight-month period.
Village of Buffalo Grove, Illinois
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Village of Buffalo Grove, Illinois
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Less: Amounts Estimated
General Available Actual Taxable
Fiscal Obligation In Debt Value of Per
Year Bonds Service Fund Total Property (1) Capita
2000 7,965,384 $ -$ 7,965,384 $ 0.74% 183.11 $
2001 12,050,984 - 12,050,984 1.09% 280.85
2002 14,085,000 - 14,085,000 1.16% 327.56
2003 15,565,000 - 15,565,000 1.18% 361.14
2004 14,565,307 - 14,565,307 1.05% 339.02
2005 12,597,846 - 12,597,846 0.84% 291.65
2006 11,780,000 499,743 11,280,257 0.70% 254.81
2007 10,202,381 486,946 9,715,435 0.58% 219.46
2007* 8,890,000 98,332 8,791,668 0.49% 196.73
2008 7,740,000 33,167 7,706,833 0.42% 171.10
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.
*Transitional fiscal year May 1, 2007 through December 31, 2007
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Village of Buffalo Grove, Illinois
Direct and Overlapping Govermental Activities Debt
As of December 31, 2008
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 42,864,205 $ 16.58%7,106,885 $
Kildeer Countryside Community Consolidated #96 7,625,000 39.95%3,046,188
Aptakisic-Tripp Community Consolidated #102 4,595,000 75.54%3,471,063
Lincolnshire - Half Day District #103 5,095,000 11.05%562,998
Adlai E. Stevenson H.S. District #125 32,160,000 37.29%11,992,464
Wheeling Township H.S. District #214 31,670,000 3.71%1,174,957
Harper Community College #512 44,550,000 1.81%806,355
College of Lake County #532 8,660,229 5.01%433,877
Total School Districts 177,219,434 28,594,787
Other than school districts
Lake County 38,945,000 4.76%1,853,782
Lake County Forest Preserve 252,435,000 4.76%12,015,906
Cook County 2,897,975,000 0.25%7,244,938
Cook County Forest Preserve 115,105,000 0.25%287,763
Metropolitan Water Reclaimation District 1,392,699,076 0.26%3,621,018
Indian Trails Library District 1,150,000 46.79%538,085
Buffalo Grove Park District 17,415,000 95.43%16,619,135
Wheeling Park District 4,235,000 6.12%259,182
Total Other Than School Activities 4,719,959,076 42,439,807
Total Overlapping Debt 4,897,178,510 71,034,594
Total Village of Buffalo Grove Direct Debt 7,740,000 100%7,740,000
Total direct and overlapping debt 4,904,918,510 $ 78,774,594 $
* 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, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
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Village of Buffalo Grove, Illinois
Schedule of Legal Debt Margin
December 31, 2008
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as set by the General
Assembly.
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Equalized
Assessed Per
Fiscal Value Capita Unemployment
Year Population (EAV) EAV Rate
2000 43,500 (E) 1,075,675,784$ 24,728$ 4.00%
2001 42,909 (A) 1,108,908,809 25,843 4.60%
2002 43,000 (E) 1,216,666,375 28,295 4.50%
2003 43,100 (E) 1,319,372,268 30,612 4.70%
2004 42,963 (A) 1,393,418,384 32,433 5.20%
2005 43,195 (A) 1,492,778,540 34,559 5.60%
2006 44,270 (E) 1,608,264,793 36,329 4.80%
2007 44,500 (E) 1,677,222,407 37,690 3.20%
2007* 44,688 (E) 1,810,821,475 40,521 3.70%
2008 45,043 (E) 1,853,784,984 41,156 6.50%
(A) Actual
(E) Estimate
Data Sources
(1) U.S. Department of Labor, Bureau of Labor Statistics
*Transitional fiscal year May 1, 2007 through December 31, 2007
Note: Personal income data not currently available
Village of Buffalo Grove, Illinois
Demographic and Economic Information
Last Ten Years
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% of % of
Total Village Total Village
Employer Employees Rank Population Employees Rank Population
Siemens Building Technologies 1030 1 2.31% 1015 2 2.36%
Allstate Insurance Company 996 2 2.24% 1310 1 3.05%
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%
Eagle Test Systems 266 7 0.60% - - -
Federal Express 250 8 0.56% 300 7 0.70%
RG Ray 245 8 0.57%
Baxter Global Technical Services 250 9 0.56% - - -
Village of Buffalo Grove 245 10 0.55% 239 9 0.56%
ASAP Software - - - 200 10 0.47%
44500 43000
Data Source
Village Records
earliest available records
(1) Prior to 2005 - Courtesy Corporation
Village of Buffalo Grove, Illinois
Principal Employers
Current Year and Six Years Ago
2008 2002
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Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2007* 2008
General Government
Administration
Village Manager's Office 66655555 5 5
Planning 22222222 2 2
Information Technology 33333334 4 4
Finance 10 10 10 10 10 10 10 10 10 10
Building and Zoning 11 11 11 11 11 11 11 11 11 11
Public Safety
Police
Full-time Police Officers 76 77 77 77 70 71 70 70 71 71
Community Service Officers 4.5 3.5 3.5 33333 3 3
Civilians 20 22 24 25 22 23 22 23 22 22
Fire
Full-time firefighters/paramedics 61 61 62 62 62 62 62 62 61 62
Civilians 6 6.5 665556 6 6
Public Works
Public Works Administration 16 16 16 16 16 16 16 15 15 15
Streets / Forestry 23 23 23 21 21 20 19 20 20 20
Water and Sewer 13 14 13 12 11 10 13 14 14 14
Central Garage 55555554 5 5
Building Maintenance 44444444 4 4
Recreation
Administration 14 14 14 14 14 14 14 14 14 14
Grounds Maintenance 15 15 15 15 15 15 15 15 15 15
Seasonal 34 34 34 34 34 34 34 34 34 34
Total 322 325.5 326.5 323 311 310 310 312 313 314
Data Source
Village Finance Department
*Transitional fiscal year May 1, 2007 through December 31, 2007
December 31Full-Time-Equivalent Employees as of April 30
Village of Buffalo Grove, Illinois
Full-Time Equivalent Employees
Last Ten Years
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Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2007* 2008
General Government
Building & Zoning
Building permits issued 1624 1390 1721 2,618 2,099 1,843 2,011 1,282 1,695 1,746
Building inspections conducted N/A N/A N/A 16,429 11,597 12,058 14,744 13,416 21,383 5,054
Property maintenance N/A N/A N/A 1,343 3,057 3,260 4,530 3,448 2,962 2,159
inspections conducted
Public Safety
Police
Physical arrests 3,599 3,146 3,076 2,878 2,673 2,609 2,489 N/A 2,143 1,085
Parking violations 5,495 4,153 5,704 4,539 4,990 5,598 4,751 N/A 4,721 3,451
Traffic violations 12,949 10,108 10,240 10,686 10,181 12,312 12,010 N/A 12,010 15,795
DUI Arrests 832 502 504 575 452 440 457 N/A 482 337
Vehicle Crashes 1,968 1,985 1,805 1,792 1,842 1,719 1,692 N/A 1,555 1,786
Fire
Ambulance Calls / EMS 2,285 2,391 2,454 2,474 2,622 2,610 2,668 2,583 2,943 2,590
Service Call 810 760 713 754 682 645 614 684 678 751
Fire Call 813 902 689 735 788 819 810 788 858 881
Auto Aid/Mutual Aid 537 538 547 544 403 360 315 406 379 689
Public Works
Streets
Street resurfacing (miles)5.32 6.20 3.42 5.53 6.95 8.59 8.25 8.30 8.23 4.94
Parks and Recreation
Park sites 46 46 46 46 46 46 46 46 46 46
Golf Courses - Combined
Golf Rounds Played - Paid 70,144 62,394 63,317 62,241 60,275 61,937 60,678 61,005 60,258 58,097
Water
New Connections (tap-ons) 62 24 48 11 66 16 6 98 33 26
Average daily consumption* 5.326 4.695 4.729 4.915 4.733 4.668 5.094 4.613 4.347 4.089
Peak daily consumption* 9.944 7.769 10.238 10.733 9.024 8.577 9.791 8.882 8.393 7.027
* (millions of gallons)
N/A - not available
Data Source
Various Village departments
*Transitional fiscal year May 1, 2007 through December 31, 2007
Village of Buffalo Grove, Illinois
Operating Indicators
Last Ten Years
Fiscal Year
- 118 -
Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2007* 2008
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units 36 36 35 35 35 35 35 35 36 36
Fire
Stations 3 3 3 3 3 3 3 3 3 3
Fire Appartus 14 15 20 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 2,614 2,714
Water
Water mains (miles) 178.36 178.36 178.36 178.36 178.36 178.36 178.36 178.36 179.57 180.63
Fire hydrants 2,449 2,449 2,449 2,449 2,449 2,449 2,449 2,449 2,468 2,474
Wastewater
Sanitary sewers (miles) 138.72 138.72 138.72 138.72 138.72 138.72 138.72 138.72 139.12 139.24
Data Source
Various Village departments
*Transitional fiscal year May 1, 2007 through December 31, 2007
Village of Buffalo Grove, Illinois
Capital Asset Statistics
Last Ten Years
Fiscal Year
- 119 -