2009 CAFRVILLAGE OF BUFFALO GROVE, ILLINOIS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2009
Prepared by the Department OF Finance
And General Services Department
Scott Anderson
Director of Finance and General Services
Katie Skibbe
Assistant Director of Finance
VILLAGE OF BUFFALO GROVE, ILLINOIS
Table of Contents
INTRODUCTORY SECTION
Officers and Officials
Letter of Transmittal
Certificate of Achievement for Excellence in
Financial Reporting
Organization Chart
INDEPENDENT AUDITOR'S REPORT
FINANCIAL SECTION
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement ofNet Assets
Statement of Activities
Fund Financial Statements
Balance Sheet-Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in
Fund Balances -Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
Statement ofN et Assets -Proprietary Funds·
Statement of Revenues, Expenses and Changes in Net Assets-
Proprietary Funds
Statement of Cash Flows -Proprietary Funds
Statement of Fiduciary Net Assets
Statement of Changes in Fiduciary Net Assets
Notes to the Financial Statements
PAGE
ii-v
vi
Vll
1
2-14
15-16
17-18
19
20
21
22
23
24
25-26
27
28
29-61
VILLAGE OF BUFFALO GROVE, ILLINOIS
Table of Contents
FINANCIAL SECTION
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual (Budgetary Basis) -General Fund
Analysis of Funding Progress
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters' Pension Fund
Employer Contributions
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters' Pension Fund
Other Post-Employment Benefits
Analysis of Funding Progress
Employer Contributions
Note to Required Supplementary Information
COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET
FINANCIAL STATEMENTS AND SCHEDULES
GOVERNMENTAL FUND TYPES
NONMAJOR GOVERNMENTAL FUNDS-COMBINING STATEMENTS
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances
NONMAJOR SPECIAL REVENUE FUNDS
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Illinois Municipal Retirement Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balances-Budget and Actual
PAGE
62
63
63
63
64
64
64
65
65
66
67
68
69
70
71
VILLAGE OF BUFFALO GROVE, ILLINOIS
Table of Contents
FINANCIAL SECTION
COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET
FINANCIAL STATEMENTS AND SCHEDULES (CONT.)
GOVERNMENTAL FUND TYPES (CONT.)
NONMAJOR SPECIAL REVENUE FUNDS (CONT.)
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual
Parking Lot Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balances Budget and Actual
NONMAJOR DEBT SERVICE FUNDS
Facilities Development Fund
Schedule ofRevenues, Expenditures and Changes in
Fund Balances -Budget and Actual
NONMAJOR CAPITAL PROJECTS FUNDS
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Street Maintenance Fund
Schedule ofRevenues, Expenditures and Changes in
Fund Balances -Budget and Actual
Facilities Development Fund
Schedule of Revenues, Expenditures and Changes in
Fund Balances Budget and Actual
PAGE
72
73
74
75
76
77
78
VILLAGE OF BUFFALO GROVE, ILLINOIS
Table of Contents
FINANCIAL SECTION
COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET
FINANCIAL STATEMENTS AND SCHEDULES (CONT.)
GOVERNMENTAL FUND TYPES (CONT.)
ENTERPRISE FUND
Waterworks and Sewerage Fund
Schedule of Operating and Nonoperating Revenues,
Operating and Nonoperating Expenses and Transfers-
Budget and Actual (Budgetary Basis)
Arboretum Golf Course Fund
Schedule of Operating and Nonoperating Revenues,
Operating and Nonoperating Expenses and Transfers-
Budget and Actual (Budgetary Basis)
NONMAJOR ENTERPRISE FUND
Combining Statement of Net Assets
Combining Statement of Revenues, Expenses and
Changes in Net Assets
Combining Statement of Cash Flows
Buffalo Grove Golf Course Fund
Schedule of Operating and Nonoperating Revenues,
Operating and Nonoperating Expenses and Transfers-
Budget and Actual (Budgetary Basis)
Refuse Service Fund
Schedule of Operating and Nonoperating Revenues,
Operating and Nonoperating Expenses and Transfers
Budget and Actual (Budgetary Basis)
PAGE
79
80
81
82
83
84
85
VILLAGE OF BUFFALO GROVE, ILLINOIS
Table of Contents
FINANCIAL SECTION
COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET
FINANCIAL STATEMENTS AND SCHEDULES (CONT.)
GOVERNMENTAL FUND TYPES (CONT.)
FIDUCIARY FUNDS
Combining Statement of Fiduciary Net Assets-Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Assets-Pension
Trust Funds
Police Pension Fund
Schedule of Changes in Fiduciary Net Assets-Budget and Actual
Firefighters' Pension Fund
Schedule of Changes in Fiduciary Net Assets Budget and Actual
School and Park Donations -Agency Fund
Schedule of Changes in Fiduciary Net Assets
CAPITAL ASSETS USED IN Tti'E OPERATION OF GOVERNl\!LtoNTAL FlJNDS
Schedule of Capital Assets by Source
Schedule by Function and Activity
Schedule of Changes by Function and Activity
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Assets by Component
Changes in Net Assets
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
PAGE
86
87
88
89
90
91
92-93
94
95-96
97-100
101-102
103-104
VILLAGE OF BUFFALO GROVE, ILLINOIS
Table of Contents
STATISTICAL SECTION (UNAUDITED)
Revenue Capacity
Assessed and Actual Value of Taxable Property
Property Tax Rates -Direct and Overlapping Governments
Principal Property Taxpayers
Property Tax Levies and Collections
Sales Tax Revenue and Number of Principal Payers-Revenue by Category
Direct and Overlapping Sales Tax Rates
Debt Capacity
Ratio Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Governmental Activities Debt
Schedule of Legal Debt Margin
Demographic and Economic Information
Demographic and Economic Statistics
Principal Village Employers
Operating Information
Full-Time Equivalent Employees
Operating Indicators
Capital Asset Statistics
PAGE
105-106
107-108
109
110-111
112-113
114
115
116
117
118
119
120
121-122
123-124
125-126
VILLAGE OF BUFFALO GROVE, ILLINOIS
Officers and Officials
December 31, 2009
Elliott Hartstein
Village President
Jeffrey Berman
Jeffrey Braiman
DeAnn Glover
Village Trustees
Joseph Tenerelli
Treasurer
* * * * * * *
William H. Brimm
Village Manager
Scott Anderson
Director of Finance and General
Services
Steve Balinski
Chief of Police
Carol Berman
Deputy Building Commissioner
Gregory P. Boysen, P.E.
Director of Public Works
Robert Giddens
Director of Management Information
Systems
Richard Kunekler, P.E.
Village Engineer
Arthur Malinowski
Director of Human Resources
Janet M. Sirabian
Village Clerk
Lisa Stone
Beverly Sussman
Steve Trilling
Carmen Molinaro
Director of Golf Operations
Ghida Neukirch
Deputy Village Manager
Robert Pfeil
Village Planner
William G. Ray sa
Village Attorney
Brian Scheehan
Deputy Building Commissioner
Katie Skibbe
Assistant Finance Director
Terrence Vavra
Fire Chief
VILLAGE OF
BUFFALO GROVE
Fifty Raupp Blvd.
Buffalo Grove, IL 60089-21 00
Phone 84 7-459-2500
Fax 847-459-0332
June 15, 2010
The Honorable Elliott Hartstein
Members of the Village Board
Citizens of the Village of Buffalo Grove
As required by both local ordinances and state statutes, the Comprehensive Annual Financial Report is
hereby issued for the Village of Buffalo Grove (Village) for the year ended December 31, 2009. The
CAFR is the management's annual report to its taxpayers, governing board, oversight bodies, investors
and creditors. These ordinances and statutes require that the Village issue an annual report on its financial
position and activity presented in conformance with accounting principles generally accepted in the United
States of America (GAAP) and audited in accordance with generally accepted auditing standards by an
independent firm of certified public accountants.
This report consists of management's representations concerning the fmances of the Village of Buffalo
Grove. Consequently, management assumes full responsibility for the completeness and reliability of all of
the information presented in the report. To provide a reasonable basis for making these representations,
management of the Village has established a comprehensive internal control framework that is designed
both to protect the government's assets from loss, theft, or misuse, and to compile sufficient reliable
information for the preparation of the Village of Buffalo Grove's financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the Village's
comprehensive framework of internal controls has been designed to provide reasonable rather than
absolute assurance that the fmancial statements will be free from material misstatement.
The Village's financial statements have been audited by Wolf & Company, LLP, a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance that the
financial statements of the Village of Buffalo Grove for the fiscal year ended December 31, 2009, are free
of material misstatement. The independent audit involved examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering
an unqualified opinion that the Village's financial statements for the fiscal year ended December 31, 2009,
are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first
component of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
Profile ofthe Village of Buffalo Grove
The Village of Buffalo Grove provides a full range of services directly to its residents as established either
by statute or through ongoing policy decisions. Those services provided include public safety with full-
time police and fire protection; water utility distribution from external sources through intergovernmental
agreement; sewerage transmission and treatment by other governmental agencies; customary public works
services (streets, parkways, vehicle, facilities, and equipment maintenance); building, zoning, code
enforcement and planning, recreation (Buffalo Grove Golf Club and Arboretum Golf Course), and general
administrative support to all functions. To carry out these services, the Village maintains 274 full time
employees. Of those employees, 133 are sworn public safety officers (71 police and 62 fire). The fire
department operates out of three fire stations.
11
The Village of Buffalo Grove, a home rule community as defmed by the Illinois Constitution, was
incorporated in 1958 and is located approximately 29 miles northwest of the downtown of the City of
Chicago. The Village resides in both Cook and Lake Counties and spans 9.20 square miles and maintains
an estimated population of 45,148.
The Village of Buffalo Grove offers a diversified mix of retail, business and residential development. The
retail community includes twenty-one shopping centers offering a wide variety of stores, specialty shops
and eating establishments. The business parks and office centers contain some of the most successful and
reputable business organizations. As a community we are also quite proud of the more than 400 acres of
parks and open space throughout the Village featuring playgrounds, sports fields, bicycle trails, and picnic
areas. Residents of Buffalo Grove enjoy the benefits of its highly rated school systems, award winning
park district facilities and programs, two libraries in close proximity to the Village, and multiple
transportation options. Regional transportation can be accessed through the Tri-State Tollway (1-294) that
provides a direct connection to Chicago or Milwaukee, Route 53 just two miles to the west provides assess
to I-290 and 1-355, 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 I, 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 31 '1 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 fmal budget no later
than December 31 '1 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. Budget-to-actual comparisons are provided in this report for each individual governmental
fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is
presented on page 62 as part of the required supplementary information. For governmental funds, other
than the general fund, with appropriated annual budgets, this comparison is presented in the required
supplementary information or combing and individual fund financial statements. The approved budget is
made available to the public. Hard copies of the document can be obtained over the counter in the fmance
department or on line at www.vbg.org.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is taken in
context of the broader perspective of the specific environment within which the Village of Buffalo Grove
operates.
111
Local Economy
Although the Village strives to maintain a diverse revenue base, the current economic downturn has
impacted all sectors of the economy rather than specific revenue sources. The local economic condition is
similar to what is being faced at the national and regional levels. The second largest source of revenue for
the Village is sales taxes (both base and home rule). Collections dropped nearly 15% in 2009 and are
expected to further decline in 2010. Efforts to reduce operating expenditures to match declines in revenue
were successful in 2009 to mitigate the deficit. As state shared sales tax combined with the home rule sales
tax represents a significant portion of the Corporate Fund revenue profile 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 sixty-seven new businesses to either locate to the Village or expand their current
operations within the Village.
From an employment and industry perspective, the Village boasts a varied light industrial and
manufacturing base that helps to moderate the 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 its
potential for future annexation is limited and most ofthe commu.'lity is built-out with several small in-fill
parcels available for development.
Long-term Financial Planning
The Village assesses its capital needs by publishing a five year Capital Improvement Plan annually. This
document is a planning tool to identifY, in the short and medium term, what the capital needs (facilities
and roadways) and measure those demands against the Village's ability to pay.
Transportation-related projects represent some of the major initiatives over the next five years. It is
estimated that $11.0 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 2011 budget in order to maintain the current level of maintenance standards.
The Village will issue debt ($2.6 million) in FY 2010 to improve storm water drainage at various locations
utilizing the strategic placement of box culverts, additions or improvements to wet/dry detention basins,
and the re-grading of swales. This improvement should remedy a long time problem associated with storm
water mitigation.
Two significant facility projects are contemplated in the next five years including expansions of the Public
Service Center and Fire Station #26. Both improvements will address functional issues related to space
constraints and will work within the existing facilities.
As a Village, the Village President and Board of Trustees work diligently to establish policy and directives
that best serve the community. The Village staff, under the direction of the Village Manager, carries out
the policy in the most fiscally responsible and efficient means possible. The Village's work ethic is best
described in the management theme-"Commitment to Excellence". Below are a number of milestones
which set direction for the Village for the 2010 calendar year. Specific tasks have been identified for each
milestone noted. The complete list of milestones can be obtained from the Village's web site at
www.vbg.org.
IV
1. Maintain and promote an economic development strategy that is realistic, in compliance with the
Village's Comprehensive Plan, and that encourages revenue producing, high quality retail, commercial and
industrial development.
2. Remain diligent to, and advocate for, appropriate improvements to regional transportation systems and
networks.
3. Continue to provide the highest quality municipal services in balance with the fiscal and financial
resources available, allocated in an efficient and effective way so as to fairly meet the needs of the Village
as a whole, all the while supporting long-term sustainability and accountability.
4. Maintain an operating and capital fiscal plans that protect, sustain and enhance public infrastructure in a
way that provides for and preserves a high level of service to residents and property owners within the
Village.
5. Continue efforts that improve upon the general management effectiveness of Village departments and
divisions by planning for succession and leadership development through an effective investment in human
capital.
6. Assure residents and business owners that they will be safe in their homes, neighborhoods and
businesses by providing quality public safety and home security services designed to protect life and
property.
7. Promote and communicate on matters related to municipal governance so as to educate and inform the
community on Village programs and operations and to foster participation in the governmental process.
Awards and acknowledgments. The Government Finance Officers Association (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Village of Buffalo Grove for its
comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2008. This was the
twenty-eighth consecutive year that the government has received this prestigious award. In order to be
awarded a Certificate of Achievement, the government published an easily readable and efficiently
organized CAFR. This report satisfies both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated services of
the entire staff of the Finance Department especially Assistant Finance Director Katie Skibbe. Credit also
must be given to the Village President and Board of Trustees for their unfailing support for maintaining the
highest standards of professionalism in the management of the Village of Buffalo Grove.
Respectfully su1J!!lit~ ~
~~~> __!)._
/'scott D. Anderson
Director of Finance and General Services
v
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Buffalo Grove
Illinois
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31,2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and fmancial reporting.
President
P/Pr/.~
Executive Director
vi
<:
1-'·
1-'·
"'Village of Buffalo Grove Organization Chart ~
I Buffalo Grove Residents I
Patrol EMS Building/Zoning Finance-General Srv. Administration
Investig.N outh Srv. Fire Supp./Rescue Information Tech. Human Resrcs. Engineering
Admn. Services Prevent/Education Communications Deputy Village Clrk Operations
Police Records Planning
Buildings
Commissions, Committees, & Boards: Central Garag~
Arts Commission Plan Commission
Blood Donor Commission Police & Fire Commission
Police Pension Fund Firefighter Pension Fund Forestry
Board of Health Residents with Disabilities
Electrical Commission Finance Committee
Zoning Board of Appeals Streets
Water/Sewer l
ESDA
Buffalo Grove G. C.
Arboretum G.C.
INDEPENDENT AUDITOR'S REPORT
Wolf Company LLP
To the Honorable Village President
Members of the Board of Trustees
Village ofBuffalo Grove, Illinois
A Wolf Financial Group Member
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying fmancial statements of the governmental activities, business-type activities, each
major fund, and the aggregate remaining fund information for the Village of Buffalo Grove, Illinois, as of and for the
year ended December 31, 2009, which collectively comprise the Village's basic fmancial statements as listed in the
table of contents. These fmancial 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 fmancial statements referred to above present fairly, in all material respects, the respective
fmancial 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, 2009, 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 2 through 14),
budgetary comparison information, and pension and other post-employment related information (pages 62 to 66) 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the fmancial statements of the Village of Buffalo Grove, Illinois. The combining, and individual nomnajor fund
fmancial statements and other schedules listed in the table of contents as supplementary information (pages 67 to 94),
are presented for purposes of additional analysis, and are not a required part of the basic fmancial 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 section and statistical information listed in the table of contents are presented for
additional analysis and are not a required part of the basic fmancial 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.
Oak Brook, Illinois
June 15, 2010
2100 Clearwater Drive Oak Brook, Illinois 60523-1927
630.545.4500 main 630.574.78!8/<z.ct· www.wolfcpa.com
MANAGEMENT'S DISCUSSION AND ANALYSIS
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31,2009
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, 2009. This information presented here should be considered in conjunction
with additional information provided in the letter of transmittal, which is found on pages ii-v.
Financial Highlights
• The assets of the Village exceeded its liabilities at December 31, 2008 by $126.1 million (net assets). Net
assets for governmental activities account for $71.3 million or 57% of the total and business-type
activities account for $54.8 million. Of this amount, $31.6 million is unrestricted and may be used to
meet the Village's ongoing obligations.
• The Village's net assets decreased by $9.2 million (or 7%) during the fiscal year ending December 31,
2009. The governmental net assets decreased by $5.6 million and the business-type activities net assets
decreased by $3.6 million.
• As of December 31, 2009, the Village of Buffalo Grove's General Fund reported combined ending fund
balances of $19.6 million, a decrease of$ 4.4 million from the prior year. Of this amount, $9.3 million
was unreserved and undesignated.
• Of the $4.4 million dollar decrease within the General Fund, $3.0 million was used to acquire capital
equipment and used to fund facility and roadway improvements.
Overview of the Financial Statements
This discussion is meant as an introduction to the Village's basic financial statements. The Village of Buffalo
Grove's basic financial statements are comprised of three components: l) government-wide financial statements,
2) fund financial statements, and 3) notes to the financial statements. Also included in the report is required
supplementary information. 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.
Government-wide Financial Statements
The government-wide financial statements (found on pages 15 to 18) are designed to report information about the
overall fmances of the Village similar to statements produced by a corporate enterprise. The Statement of Net
Assets combines and consolidates governmental funds, current financial resources with capital assets and long-
term obligations. It uses 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 subsidies 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
financial position of the Village. The Statement of Activities demonstrates how the net assets changed during the
most recent fiscal period.
2
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
Both of the government-wide financial statements distinguish functions of the Village that are fmanced 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 state and home rule sales tax, shared state income
tax, real estate transfer tax, prepared food and beverage tax, and telecommunication tax finance the majority of
these services. The Business-type Activities reflect private sector type operations and include Water and Sewer
Funds, Refuse Fund, Buffalo Grove Golf Course and Arboretum Golf Course. The intent is for the fees to cover
the costs of operations and debt service expenses.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The Village uses fund accounting to insure 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 Funds (see pages 19 to 22) are used to account for primarily the same functions as
governmental activities in the government-wide financial statements. The focus is on the sources and uses of
available resources (cash and cash equivalents), in order to provide a near, or short-term view of the Village's
operations. It is within this context that the annual budget is developed and is an appropriate focus of any fiscal
analysis of government.
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 23 to 26) is the
same as the Business-type colunm at the Government-Wide Financial Statement, the governmental Major Funds
Total column requires a reconciliation because of the different measurement focus (current fmancial 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 wiii 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 Viiiage'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
wiii be considered maintenance whereas a "rebuild" of a road wiii be capitalized.
3
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31,2009
Government-wide Financial Analysis
As previously reported, the assets of the Village of Buffalo Grove exceeded liabilities by $126.1 million as of
December 31, 2009. The largest portion of the Village's net assets reflects its investment in capital assets
($94.4 million or 75%) including land, buildings, infrastructure, and equipment, less any outstanding debt related
to the original acquisition. The Village uses these capital assets to help facilitate service delivery to its residents,
consequently, these assets are not available for future spending. Although the Village's investment in its capital
assets is reported net of related debt, it should be noted that the resources needed to repay the debt must be
provided from other sources, since the capital assets themselves cannot be used to reduce these liabilities.
An additional portion of the Village's net assets ($.1 million) would represent resources that are subject to external
restrictions on how they may be used. This amount is restricted for construction obligations. The remaining
balance of unrestricted net assets ($31.6 million or 25%) 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 $9.2 million as a result of governmental activities decreasing by
$5.6 million and business-type activities decreasing by $3.6 million. Net assets of the Village's governmental
activities were $71.3 million. The Village's unrestricted net assets for governmental activities that are available
for day-to-day financial operations were $16.6 million compared to $23.3 million at December 31, 2008. The net
assets of business-type activities were $54.8 million. The business-type activities unrestricted net assets decreased
by $3.0 million from the previous year.
Please refer to table below for condensed Statement of Net Assets:
Statement of Net Assets
As of December 31,2009 and December 31,2008
(in millions)
Governmental Business-Type
Activities Activities Total
2009 2008 2009 2008 2009 2008
Current and Other Assets $ 40.3 43.7 16.1 18.1 56.4 61.8
Capital Assets 61.2 61.3 39.8 41.4 101.0 102.7
Total Assets 101.5 105.0 55.9 59.5 157.4 164.5
Long-Term Liabilities 7.1 7.7 7.1 7.7
Other Liabilities 23.1 20.4 1.1 1.1 24.2 21.5
Total Liabilities 30.2 28.1 1.1 1.1 31.3 29.2
Net Assets
Invested in Capital Assets,
Net of Debt 54.6 53.5 39.8 41.4 94.4 94.9
Restricted 0.1 0.1 0.1 0.1
Unrestricted 16.6 23.3 15.0 17.0 31.6 40.3
Total Net Assets $ 71.3 76.9 54.8 58.4 126.1 135.3
4
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
At December 31, 2009, the Village of Buffalo Grove as a whole had assets greater than its liabilities by
$126.1 million. The majority (75%) 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 $54.8 million. As with the governmental activities, the
majority (72%) ofthe net assets are invested in capital assets.
There are six basic (normal) transactions that will affect the comparability of the Statement ofNet 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.
5
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
Changes in Net Assets.
The Village's total revenues and expenses for governmental and business-type activities are reflected in the
following chart:
Statement of Changes in Net Assets
For the Years Ended December 31,2009 and 2008
(in millions)
Governmental Business-Type
Activities Activities Total
2009 2008 2009 2008 2009 2008
REVENUES
Program Revenues
Charges for Services $ 2.6 2.8 11.3 10.8 13.9 13.6
Grants and Contributions
Operating 1.3 1.3 1.3 1.3
Capital 0.1 0.1
General Revenues
Property 12.5 12.1 12.5 12.1
Sales and Use Taxes 7.2 8.4 7.2 8.4
Income Tax 3.6 4.6 3.6 4.6
Telecommunications Tax 2.3 2.4 2.3 2.4
Property Transfer Tax 0.7 0.6 0.7 0.6
Other 3.0 4.0 {0.42 0.5 2.6 4.5
Total Revenues 33.2 36.2 10.9 11.4 44.1 47.6
EXPENSES
Governmental Activities
General Government 6.2 5.7 6.2 5.7
Public Safety 22.8 21.1 22.8 21.1
Public Works 10.4 13.2 10.4 13.2
Interest 0.3 0.4 0.3 0.4
Business-type Activities
Water and Sewer 9.5 8.7 9.5 8.7
Refuse Services 1.0 1.0 1.0 1.0
Golf 3.1 3.4 3.1 3.4
Total Expenses 39.7 40.4 13.6 13.1 53.3 53.5
Deficiency before Transfers (6.5) (4.2) (2.7) (1.7) (9.2) (5.9)
Transfer In (Out) 0.9 0.1 {0.92 {0.12
Change in Net Assets (5.6) (4.1) (3.6) (1.8) (9.2) (5.9)
Net Assets, Beginning 76.9 81.0 58.4 60.2 135.3 141.2
Net Assets, Ending $ 71.3 76.9 54.8 58.4 126.1 135.3
6
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31,2009
Revenues for the Village's governmental activities for the year ended December 31, 2009 were $33.2 million.
Expenditures for the fiscal year exceeded revenues, resulting in a decrease in net assets, before transfers, of
$6.5 million. Charges for services were down $.2 million (7%), primarily due to the condition of the housing
market as it relates to building permits and inspection fees. Income, sales and use taxes decreased significantly
due to the State being slow in remitting funds to the Village and the overall state and regional economic
conditions. Overall revenues were down $3 million compared to the previous fiscal year, or a decrease of 8.3%.
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
II Charges for Services
• Grants and Contributions
DProperty
11% 0 Sales and Use Taxes
•Income Tax
Iii! Telecommunications Tax
• Property Transfer Tax
OOther
The cost of all governmental activities this year was $3 9. 7 million. The Statement of Activities on pages 17 and 18
shows that $2.6 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 $35.8 million.
7
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31,2009
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:
Expenses and Program Revenues-Governmental Activities
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
General Government Public Safety Public Works Interest
IIIII Expenses 11 Program Revenues I
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 $10.9 million for the year ended December 31, 2009. One
hundred percent of the revenues come from charges paid by the users. The costs of these activities were
$13.6 million. The Statement of Activities is on pages 17 and 18.
Financial Analysis of the Village's Funds
Governmental Funds
The Village's governmental funds for the year ended December 31, 2009 reflect a combined fund balance of
$21.7 million in its balance sheet on page 19. This represents a $5.5 million dollar decrease or 20.2% over the
balance posted last year. Of the total fund balance of$21.7 million, $10.5 million is unreserved and undesignated
indicating availability for continuing Village services, $1.2 million is designated as reserved for prepaid insurance
and inventory, $1 million is reserved for the Retiree Health Savings Program, and $9 million is designated for
capital replacement.
8
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
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, building and zoning, and general administration. The Fund
Balance of the General Fund decreased by $4.4 million or 18% from December 31, 2009 (from $24.0 million to
$19.6 million). The decrease in fund balance was due to a combination of a drop in the revenue base due to the
current economic condition and an increase in capital spending. State-shared taxes, including sales and income
taxes, dropped off significantly in the fiscal period. Sales taxes were down $1.2 million or 14%. State and
regional economic conditions play a significant role in sales tax receipts. Given the current prolonged downturn
the decline was anticipated. Adding to the decline was the fmal closeout of two auto dealerships. Similar to sales
taxes, income taxes were down substantially ($1 million-22% year over year). Historically high unemployment
rates coupled with the State of Illinois' delay in disbursing funds due municipalities resulted in the large decline.
General Revenues-Taxes
14
12
'iii" 10
c 8 ~ .E 6
:§. 4
2
0
£ X ~ en ~ ~ c
~ .Q
fil & ro c e (..) 12
ll. ~ 0 ·c: f-
(..) :::J (]) E E N E en 0 UJ (..)
~ & ~
The General Fund's revenues decreased by $2.6 million (8%). The remainder of the decline beyond what was
noted previously is due to declines in charges for service caused by a lack of development, both commercial and
residential, and the corresponding fees generated by those activities. Interest income also declined as investment
continued to mature they were reinvested at much lower rates as most investments are limited to a duration of less
than 36 months. The historically lower Federal Funds Rate has a significant impact on much of the General
Fund's investment portfolio.
Of the total fund balance, $9.3 million is unreserved indicating availability for continuing Village services.
$9 million is unreserved but designated for capital equipment. The Village maintains a funding schedule for each
major piece of capital equipment to insure funds are available for replacement upon the end of the equipment's
effective service life. Reserved fund balance of $1.2 million includes $1.2 million in reserves for prepaid
insurance and $.09 million for garage inventory.
9
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
General Fund expenditures increased by $.6 million (2%). The costs associated with wages and benefits
contributed to the increase in General Fund expenditures due to a 3% cost-of-living adjustment. The deficiency of
revenues over expenditures in the General Fund was $3.4 million. Adding in the net other financing uses, the total
change to fund balance of the General Fund totaled $4.4 million. The deficit is primarily due to anticipated, and
budgeted, declines in revenue, contributions of $1.2 million to pay-as-you-go financing of capital projects in
FY09, and $1.8 million for spending on capital equipment including $1.4 million on fire apparatus.
General Governmental Expenses
25
(I) 20
c
~ 15
.E 10
e 5
0
c ~ rJ)
~ .$2 -!!:
E ~ ~ Q) .s:! (.) i5 ]5 :B (9 ::J cr ~ 0.
Q)
fii
(9
Special Revenue Funds have a combined fund balance of $1.3 million as of December 31, 2009 up $.01 million
from December 31, 2008. The largest increase was in Motor Fuel Tax Fund. 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 program variances. Revenues received from the state share of the motor fuel tax was $1.1 million. The
cost of the 2009 street maintenance program was $2.2 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 negative fund balance of $.01 million as of the end of FY 2009, a decrease of
$.05 million from the previous year. The deficit is due to a lower amount of property tax collections due to an
under extension of taxes in Lake County. Total debt outstanding totals $6.6 million and is related to all general
obligation bonds.
The Village's Capital Improvement Funds (Facilities and Streets) have a total fund balance of $.9 million, down
$1 million from December 31, 2009. Significant projects completed were the White Pines Drainage Ditch, Old
Checker Road Culvert Improvement, and engineering on the Village-wide Drainage Improvement Project, and the
engineering study on the Weiland Road Corridor project. The Village-wide Drainage Improvement Project will
ultimately be debt fmanced.
10
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
Proprietary Funds
The Village of Buffalo Grove's proprietary funds provide the same type of information found in the government-
wide fmancial 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 ofwhich 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 $1.5 million as of December 31, 2009. Residential
consumption of water was at the lowest level in 18 years declining almost 14% against the historic average. An
unusually mild and wet spring and summer led to the reduced level of water consumption. Several capital
improvements were made to two sanitary sewer lift stations during the year. Improvements to the water and sewer
infrastructure has been cash financed.
Unrestricted net assets of the Water and Sewer Fund at the end of the current fiscal year was $15.2 million. Of
this amount, $7.5 million is available to cash finance any major infrastructure improvements or enhancements to
the water system.
The Village also reported the Arboretum Golf Course Fund as a major proprietary fund. This fund accounts for all
operations of the Arboretum Golf Course. The course reported a year-end unrestricted net asset deficit balance of
$.2 million. Total revenues were approximately $15,000 less than the previous year due to lower usage of golf
carts, clubs, and other rentals. The Village of Buffalo Grove owns and operates two municipal golf courses. Golf
play levels continue to be stagnant given both the economy and the state of the industry. A total of 59,723 paid
rounds were played between the two courses representing a 3.5% decline over the 10-year average. Membership
rounds add another 8,423 rounds of play. Despite the slack in daily play performance, the courses continue to
offer attractive open green space and serve to mitigate drainage issues for the residences on the periphery of the
courses.
General Fund Budgetary Highlights
The Village adopts a budget on a fund basis consistent with generally accepted accounting principles. The budget
represents the culmination of operational and financial planning and functions as a blue print for the Village's
policies. The budget is developed in a collaborative process. The Finance Department initially will provide a
planning calendar and an assessment of reserve levels and budget capacity. Early in the budget process, a finance
committee meeting will be held with the President and Board of Trustees to define preliminary targets, goals, and
objectives. Based on available data, each operating department will submit its request based upon perceived
needs. Department Directors will articulate those requests to the Village Manager and Finance Director. Often
discussed are new initiatives, program objectives, and capital needs.
As the document is near fmal form, another finance committee meeting is held to provide an opportunity for
comment and suggestions for modifications. The budget is formally presented to the Village Board in late
November or early December. As the Village operates under the Appropriations Act, a public hearing is
conducted after the budget is adopted for public comment on the Appropriations Ordinance. The Ordinance sets
the legal spending ceiling for each fund. The budget is the day-to-day management tool to insure fiscal
accountability.
11
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
Capital Assets
At the end of December 31, 2009, the Village had a combined total of capital assets of $100.9 million invested in a
broad range of capital assets including, buildings, streets, storm sewers, and equipment. This amount represents a
net decrease (including additions and deductions) of $1.8 million.
Land
Construction in Progress
Land Improvements
Buildings
Equipment and Vehicles
Streets and Storm Sewers
Water and Sewer Infrastructure
Capital Assets at Year End
Net of Depreciation
As of December 31,2009 and 2008
(in millions)
Governmental Business-Type
Activities Activities
2009 2008 2009 2008
$ 36.00 36.00 6.20 6.20
0.50 0.80 0.07 0.30
0.60 0.10
4.40 4.60 5.30 5.80
4.40 3.40
15.20 16.50
28.30 29.00
$ 61.10 61.30 39.87 41.40
Major additions to capital assets during the year included the following (in millions):
Governmental Activities
Building Improvements
Land Improvements
Vehicles and Equipment
Business-type Activities
Water and Sewer Systems Additions
0.5
0.6
1.8
0.4
Total
2009 2008
42.20 42.20
0.57 l.lO
0.60 0.10
9.70 10.40
4.40 3.40
15.20 16.50
28.30 29.00
100.97 102.70
The Governmental Activities net capital assets decreased from last year by $.2 million (.3%). 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 $1.6 million or (3 .9% ).
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, including $1.4 million in fire
apparatus, and donated developer assets as part of sewer system capacity improvements for new developments.
Land Improvement included a major culvert rebuild on Old Checker Road and costs associated with the Village-
wide Drainage Improvement Project.
Detailed information on the Village's capital assets is included in Note 5 on paes 38 and 39.
12
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31, 2009
Long-Term Debt
At year end, the Village had total bonded debt outstanding of$7.7 million as shown in the next table:
General Obligation Bonds and NWWC Contract Payable
As of December 31,2009 and 2008
(in millions)
Governmental Business-Type
Activities Activities
2009 2008 2009 2008
General Obligation Bonds $ 6.6 7.7
Contract Payable-Northwest Water
Commission 0.4
$ 6.6 7.7 0.4
Total
2009 2008
6.6 7.7
0.4
6.6 8.1
The Village maintains assigned "Aal" 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 $147.44 and represents .29% of the
percentage of equalized assessed valuation of the Village.
The Village, under its home rule authority, does not have a legal debt limit. In 20 l 0, the Village did issue
$2.6 million in bonds (Series 2010B) for the Village-wide Drainage Improvement Project. $5.2 million in bonds
(Series 2010A) were issued as refunding bonds.
Detailed information on the Village's long-term debt can be found in Note 6 on pages 40 and 41.
Economic Factors and Next Year's Budgets and Rates
The Village's share of the state sales and income tax plus the property tax continue to represent the largest portion
of the General Corporate Fund Revenue. The Village will remain diligent about protecting its established sales tax
base, and continue to move forward with its economic development initiatives, to enhance the economic climate of
the community. Sales tax will continue to be impacted in FY 2010 as the three auto dealerships, two of which
have moved operations out of the Village and the third (Saturn) has not found a buyer. The land will continue to
be marketed heavily for a similar use.
The taxable value of property in the Village dropped by .4% for the 2009 tax levy extended in 2010. Property
value trends will be closely monitored. The 2009 Corporate Fund Levy increased by .13% from the previous year
while the pension funds grew by 16.1% reflecting the impact of a dismal 2008 investment year.
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. Two new
sources of revenue were approved in 2010. The Village has implemented utility use taxes for both natural gas and
electricity. The use taxes were proposed as a stop gap measure to replace the significant decreases in sales and
income taxes. The additional revenue will allow the Village to maintain its same level of high quality public
services.
13
VILLAGE OF BUFFALO GROVE, ILLINOIS
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)
December 31,2009
In fiscal year 2010, 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 58% of the estimated
expenditures. This source of revenue will continue to be a challenge as collections are based upon units of gas
sold and not as a percentage of sales. As driving habits and commuting patterns change to offset some of the high
oil costs so will the demand for fuel.
The Village issued Series 2010A and 2010B General Obligation Bonds in 2010. One issue is for the Village-wide
Drainage Improvement project, the other is to refund existing debt to take advantage of a bond rating upgrade by
both Standard & Poor's and Moody's Investor Services to AAA.
The Village continues to suffer 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 2010 will be as challenging as FY
2009. Building related fees reflect the estimated construction activity anticipated during the year including several
housing developments. These fees are slowly reflecting the built out nature of our corporate limits.
The performance of the equity markets will be monitored closely as all three of the defined benefit plans (IMRF,
Police and Firefighter Pension Funds) have a actuarial interest performance target of 7 .5%. Given the state of the
fixed income market and the historically low Federal Funds rate, equities will need to perform exceptionally well
to attain the benchmark as the portfolio of the locally held funds (Police and Firefighter Pension Funds) are capped
at 45% equities. The funding status of all three funds will improve after the results of the 2009 investment year.
A continuing rebound in equities would reduce the pressure on property tax levy requirements.
The fiscal year ending December 31, 2010 Operating Budget Revenues are projected to be $64.4 million compared
to $60.1 million the previous year. The projected Operating Expenditures are $62.4 million ($60.9 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% oftotal Village expenditures. All
employee groups' wages were frozen in 2010 in response to the current budget challenges. The Corporate Fund in
2010 operationally is in balance with a planned deficit of $.2 million after transfers are made for investments in
capital. Pension and group health insurance represent a significant portion of the annual personnel expenditures.
The group health insurance costs in 2010 are projected to be $3.3 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 and General Services, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo
Grove, IL 60089.
14
BASIC FINANCIAL STATEMENTS
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement ofNet Assets
December 31, 2009
(See Following Page)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement ofNet Assets
December 31,2009
Governmental Business-Type
Activities Activities Total
Assets
Current Assets
Cash and Equivalents $ 9,155,833 3,357,262 12,513,095
Investments 11,127,276 3,187,025 14,314,301
Receivables
Property Taxes 13,536,785 13,536,785
Accounts-Water 1,299,235 1,299,235
Municipal Sales Tax 1,977,049 1,977,049
Illinois Income Tax 1,172,533 1,172,533
Motor Fuel Tax 88,855 88,855
Telecommunications Tax 551,385 551,385
Food and Beverage Tax 67,564 67,564
Interest 35,115 4,756 39,871
Other 31,191 137,849 169,040
Due from Other Funds 1,324,238 357,061 1,681,299
Inventory 90,532 37,500 128,032
Total Current Assets 39,158,356 8,380,688 47,539,044
Noncurrent Assets
Prepaid Items 1,157,896 405,210 1,563,106
Investment in Joint Venture 7,332,072 7,332,072
Capital Assets, Net of Accumulated
Depreciation
Land 35,963,844 6,198,514 42,162,358
Construction in Process 535,875 73,344 609,219
Buildings 4,407,203 5,268,205 9,675,408
Land Improvements 594,159 594,159
Equipment and Vehicles 4,412,665 4,412,665
Streets and Storm Sewers 15,224,639 15,224,639
Water and Sewer System Infrastructure 28,268,826 28,268,826
Total Noncurrent Assets 62,296,281 47,546,171 109,842,452
Total Assets 101,454,637 55,926,859 157,381,496
(Cont.)
See accompanying Notes to the Financial Statements.
15
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Assets (Cont.)
December 31, 2009
Governmental Business-Type
Activities Activities Total
Liabilities
Current Liabilities
Accounts Payable and Accrued Liabilities 2,281,665 693,745 2,975,410
Accumulated Unpaid Sick Leave 39,820 39,820
Claims Payable 268,746 268,746
Deposits Payable 891,728 50,726 942,454
Unearned Property Taxes 13,172,924 13,172,924
Unearned Taxes -Other 500,333 500,333
Due to Other Funds 1,319,009 362,290 1,681,299
Net Pension Liability 329,850 329,850
Net Other Post-Employment Obligation 123,065 123,065
Other Liabilities -Pension Funds 3,288,918 3,288,918
General Obligation Bonds Payable 885,000 885,000
Total Current Liabilities 23,101,058 1,106,761 24,207,819
Noncurrent Liabilities
Accumulated Unpaid Sick Leave 1,369,430 1,369,430
General Obligation Bonds Payable 5,690,000 5,690,000
Total Noncurrent Liabilities 7,059,430 7,059,430
Total Liabilities 30,160,488 1,106,761 31,267,249
Net Assets
Invested in Capital Assets, Net of Related Debt 54,563,385 39,808,889 94,372,274
Restricted for Road Construction 140,712 140,712
Unrestricted 16,590,052 15,011,209 31,601,261
Total Net Assets $ 71,294,149 54,820,098 126,114,247
See accompanying Notes to the Financial Statements.
16
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Activities
Year Ended December 31, 2009
Functions/Programs
Governmental Activities
General Government
Public Safety
Public Works
Interest and Fiscal Charges
Total Governmental Activities
Business-Type Activities
Waterworks and Sewerage
Refuse Service
Golf Courses
Total Business-Type Activities
Expenses
$ 6,182,475
22,753,590
10,421,659
334,142
39,691,866
9,519,169
944,392
3,118,647
13,582,208
$ 53,274,074
See accompanying Notes to the Financial Statements.
17
Program Revenues
Charges for
Services
977,464
1,563,236
50,709
2,591,409
8,008,360
1,004,431
2 320,247
11 333,038
13,924,447
General Revenues
Taxes
Property
Operating
Grants and
Contributions
242,810
1,106,234
1,349,044
1,349,044
Sales and Home Rule, Net
Income and Use
Telecommunications
Property Transfer
Other
Investment Income (Loss)
Miscellaneous
Gain on sale of assets
Transfers In (Out)
Total General Revenues
and Transfers
Change in Net Assets
Net Assets
Beginning
Ending
Capital
Grants
Contributions
Net ~ExEense1, Revenue and Changes in Net Assets
Governmental Business-Type
Activities Activities Total
(5,205,011) (5,205,011)
(20,947,544) (20,947,544)
(9,264,716) (9,264,716)
{334,1422 ~334,142}
(35,751,413) (35,751,413)
(1,510,809) (1,510,809)
60,039 60,039
{798,4002 ~798,4002
{2,249, 1702 {2,249,1702
(35,751,413) (2,249, 170) (38,000,583)
12,504,508 12,504,508
7,196,969 7,196,969
3,601,619 3,601,619
2,345,249 2,345,249
670,762 670,762
1,006,249 1,006,249
490,881 (374,632) 116,249
1,369,900 1,315 1,371,215
33,383 33,383
935,000 {935,0002
30,154,520 {1,308,3172 28,846,203
(5,596,893) (3,557,487) (9,154,380)
76,891,042 58,377,585 135 268 627
71,294,149 54,820,098 126,114,247
18
VILLAGE OF BUFFALO GROVE, ILLINOIS
Balance Sheet -Governmental Funds
December 31, 2009
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
Assets
Cash and Equivalents $ 6,381,513 2,201,361 8,582,874
Investment 11,127,276 11,127,276
Receivables
Property Taxes 11,181,725 2,355,060 13,536,785
Municipal Sales Tax 1,977,049 1,977,049
Illinois Income Tax 1,172,533 1,172,533
Motor Fuel Tax 88,855 88,855
Telecommunications Tax 551,385 551,385
Food and Beverage Tax 67,564 67,564
Interest 35,115 35,115
Other 31,191 31,191
Due from Other Funds 72,915 1,251,323 1,324,238
Inventory 90,532 90,532
Prepaid Items 1,157,896 1,157,896
Total Assets $ 33,846,694 5,896,599 39,743,293
Liabilities
Accounts Payable and Accrued Liabilities $ 2,015,220 146,021 2,161,241
Deposits Payable 891,728 891,728
Deferred Property Taxes 10,883,715 2,289,209 13,172,924
Deferred Taxes -Other 500,333 500,333
Due to Other Funds 1,319,009 1,319,009
Total Liabilities 14,290,996 3,754,239 18,045,235
Fund Balances
Reserved for Inventory 90,532 90,532
Reserved for Prepaid Items 1,157,896 1,157,896
Reserved for Debt Service (12,970) (12,970)
Unreserved -Designated
General Fund 9,005,069 9,005,069
Special Revenue Funds 978,688 978,688
Unreserved -Undesignated
General Fund 9,302,201 9,302,201
Special Revenue Funds 273,327 273,327
Capital Projects Funds 903,315 903,315
Total Fund Balances 19,555,698 2,142,360 21,698,058
Total Liabilities and Fund Balances $ 33,846,694 5,896,599 39,743,293
See accompanying Notes to the Financial Statements.
19
VILLAGE OF BUFFALO GROVE, ILLINOIS
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets
December 31,2009
Total Fund Balances -Governmental Funds
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.
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
funds are included in the governmental activities in the Statement of Net
Assets. Interest service fund net assets are:
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
the governmental funds. These liabilities consist of:
Net Pension Obligations
Net Other Post-employment Obligation
Other Liabilities to Pension Funds
General Obligation Bonds Payable
Accumulated Unpaid Sick Leave
Net Assets of Governmental Activities
See accompanying Notes to the Financial Statements.
20
$ 21,698,058
61,138,385
183,789
(329,850)
(123,065)
(3,288,918)
( 6,575,000)
(1 ,409,250)
$ 71,294,149
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Year Ended December 31, 2009
Revenues
Charges for Services
Licenses and Permits
Intergovernmental
Fines and Fees
Property Taxes
Other Taxes
Investment Income
Miscellaneous
Total Revenues
Expenditures
Current
General Government
Public Safety
Public Works
Capital Outlay
Debt Service
Principal
Interest and Fiscal Charges
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances
Beginning
$
General
Fund
831,363
276,857
1,559,190
10,372,145
14,806,744
483,749
1,146,496
29,476,544
5,008,355
20,417,910
7,505,004
32,931,269
(3 ,454, 725)
705,000
(1,675,967)
(970,967)
( 4,425,692)
23,981,390
Ending $ 19,555,698
See accompanying Notes to the Financial Statements.
21
Nonmajor Total
Governmental Governmental
Funds Funds
139,174 970,537
276,857
1,106,234 1,106,234
1,559,190
2,132,363 12,504,508
14,806,744
7,132 490,881
298,114 1,444,610
3,683,017 33,159,561
588,467 5,596,822
464,835 20,882,745
2,832,086 10,337,090
1,245,940 1,245,940
1,165,000 1,165,000
334,142 334,142
6,630,470 39,561,739
(2,947,453) ( 6,402, 178)
2,204,382 2,909,382
(298,415) (1,974,382)
1,905,967 935,000
(1,041,486) (5,467,178)
3,183,846 27,165,236
2,142,360 21,698,058
VILLAGE OF BUFFALO GROVE, ILLINOIS
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended December 31, 2009
Net Change in Fund Balances-Total Governmental Funds
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures while
governmental activities report depreciation expense to allocate
those expenditures over the life of the assets. This is the amount
by which depreciation exceeded capital outlays in the current
period ($2,677,604 current additions less $2,828,797 depreciation).
Repayment of principal is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the Statement of
Net Assets.
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 governmental activities.
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
Increase in Pension Obligation
Increase in Net Other Post-employment Obligation
Increase in Accumulated Unpaid Sick Leave
Increase in Other Liabilities to Pension Funds
Change in Net Assets of Governmental Activities
See accompanying Notes to the Financial Statements.
22
$ (5,467,178)
(151,193)
1,165,000
(35,021)
(1,687)
(727,397)
(55,450)
(296,056)
(27,911)
$ (5,596,893)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Assets-Proprietary Funds
December 31, 2009
Governmental
Business-T~Ee Activities-EnterErise Funds Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Assets
Current Assets
Cash and Equivalents $ 3,287,390 700 69,172 3,357,262 572,959
Investments 3,187,025 3,187,025
Receivables
Accounts -Water 1,299,235 1,299,235
Interest 4,756 4,756
Other 50,780 87,069 137,849
Due from Other Funds 357,061 357,061
Inventory 14,745 22,755 37,500
Total Current Assets 8,135,467 66,225 178,996 8,380,688 572,959
Noncurrent Assets
Prepaid Items 405,210 405,210
Investments in Joint Venture 7,332,072 7,332,072
Capital Assets, Net of Accumulated
Depreciation
Land 5,219,738 978,776 6,198,514
Construction in Progress 73,344 73,344
Buildings 4,921,317 346,888 5,268,205
Water a11d Sewer System 28,268,826 28,268,826
Total Noncurrent Assets 36,079,452 10,141,055 1,325,664 47,546,171
Total Assets 44,214,919 10,207,280 1,504,660 55,926,859 572,959
Liabilities
Current Liabilities
Accounts Payable and Accrued
Liabilities 607,379 38,562 47,804 693,745 120,424
Claims Payable 268,746
Deposits Payable 50,726 50,726
Due to Other Funds 199,258 163,032 362,290
Total Liabilities 658,105 237,820 210,836 1,106,761 389,170
Net Assets
Invested in Capital Assets 28,342,170 10,141,055 1,325,664 39,808,889
Unrestricted 15,214,644 {171,595} {31,840} 15,011,209 183,789
Total Net Assets $ 43,556,814 9,969,460 1,293,824 54,820,098 183,789
See accompanying Notes to the Financial Statements.
23
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenses, and
Changes in Net Assets -Proprietary Funds
Year Ended December 31, 2009
Governmental
Business-Tl:Ee Activities-Ente!:Erise Funds Activities
Waterworks Arboretum Nonmajor Internal
and Sewerage Golf Course Enterprise Service
Fund Fund Funds Total Fund
Operating Revenues
Water and Sewerage Charges $ 7,956,955 7,956,955
Daily Greens Fees and Memberships 757,200 855,959 1,613,159
Merchandise Sales 42,618 73,506 116,124
Connection and Recapture Fees 51,405 51,405
Cart, Club and Other Rentals 269,399 217,764 487,163
Driving Range Fees 70,439 70,439
SWANCC User Fees 1,004,431 1,004,431
Health Premiums 4,011,316
Miscellaneous 17,494 15,868 33,362
Total Operating Revenues 8,008,360 1,086,711 2,237,967 11 333,038 4,011,316
Operating Expenses
Water Operations 1,619,520 1,619,520
Sewer Operations 5,041,603 5,041,603
Water Purchases 1,663,987 1,663,987
Golf Operations 1,166,707 1,242,620 2,409,327
Cost of Sales -Pro Shop 47,958 69,577 117,535
Refuse Operations 944,392 944,392
Health Services 4,048,436
Depreciation 1,194,059 536,793 54,992 1,785,844
Total Operating Expenses 9,519,169 1,751,458 2,311,581 13,582,208 4,048,436
Operating Loss {1,510,809} {664,7472 {73,6142 {2,249, 1702 {37,1202
Nonoperating Revenues (Expense)
Loss from Joint Venture (472,925) (472,925)
Investment Income 98,317 (24) 98,293 2,099
Other 1,315 1 315
{373,2932 {242 {373,317} 2,099
Loss before Transfers (1,884, 1 02) (664,747) (73,638) (2,622,487) (35,021)
Transfers Out {885,0002 {50,000} {935,0002
Change in Net Assets (2,769,102) (664,747) (123,638) (3,557,487) (35,021)
Net Assets
Beginning 46,325,916 10,634,207 1,417,462 58,377,585 218,810
Ending $ 43,556,814 9,969,460 1,293,824 54,820,098 183,789
See accompanying Notes to the Financial Statements.
24
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Cash Flows -Proprietary Funds
Year Ended December 31, 2009
Governmental
Business-T~2e Activities-Ente!:£rise Funds 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 $ 7,667,162 7,667,162
Cash Received from Residents for
Connections 51,405 51,405
Cash Received for Golf Activities 1,035,931 1,233,536 2,269,467
Cash Received for Refuse Services 917,362 917,362
Cash Received from Other Funds
for Services 4,011,316
Payments to Employees (1,287,348) (697,591) (773,987) (2,758,926)
Payments to Suppliers {7,296,7352 {538,2562 {1,492,3682 {9,327,3592 {3,889,306}
{865,5162 {199,9162 {115,4572 {1, 180,8892 122,010
Cash Flows from Noncapital Financing
Activities
Change in Due to/from Other Funds, Net (357,061) 199,258 163,032 5,229 (63,261)
Transfers Out {885,0002 {50,0002 {935,0002
{1,242,0612 199,258 113,032 {929,7712 {63,2612
Cash Flows from Capital and Related
Financing Activities
Capital Assets Purchased {220,4672 {220,4672
Cash Flows from Investing Activities
Interest Received 104,884 (24) 104,860 2,099
Sale ofinvestments 645,000 645,000 512,111
749,884 {242 749,860 514,210
Net Increase (Decrease) in Cash
and Equivalents (1,578,160) (658) (2,449) (1,581,267) 572,959
Cash and Equivalents
Beginning 4,865,550 1,358 71,621 4,938,529
Ending $ 3,287,390 700 69 172 3,357,262 572,959
(Cont.)
See accompanying Notes to the Financial Statements.
25
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Cash Flows-Proprietary Funds (Cont.)
Year Ended December 31, 2009
Reconciliation of Operating Loss to Net Cash
Provided (Used) by Operating Activities
Operating Loss
Adjustments to Reconcile Operating Loss
to Net Cash Provided (Used) by
Operating Activities
Depreciaiion
Changes in Assets and Liabilities
Receivables
Inventory
Prep aids
Accounts Payable and Accrued
Liabilities
Deposits Payable
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Sununary ofNoncash Investing Activities
Loss from Joint Venture
Net Appreciation ofinvestments
See accompanying Notes to the Financial Statements.
Business-TyPe Activities -Enterprise Funds
Waterworks Arboretum Nonmajor
and Sewerage Golf Course Enterprise
Fund Fund Funds Total
$ (1,510,809) (664,747) (73,614) (2,249, 170)
1,194,059 536,793 54,992 1,785,844
(289,793) (50,780) (87,069) (427,642)
(5,203) (3,809) (9,012)
101,097 101,097
(350,391) (15,979) (5,957) (372,327)
{9,6792 {9,6792
645,293 464,831 {41,8432 1,068,281
$ {865,5162 (199,9162 015,4572 ( 1,180,8892
$ {472,9252 {472,9252
$ 15,025 15,025
26
Governmental
Activities
Internal
Service
Fund
(37,120)
159,130
159,130
122,010
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Fiduciary Net Assets
December 31, 2009
Assets
Cash and Equivalents
Investments
Certificates of Deposit
U.S. Government and Agency Obligations
Open-end Mutual Funds
Receivables
Pension Contributions
Interest
Total Assets
Liabilities
Accounts Payable
Due to Other Governments
Total Liabilities
Net Assets
Restricted for Pension Benefits
See accompanying Notes to the Financial Statements.
27
Pension
Trust
Funds
$ 5,717,496
15,501,802
16,208,045
25,261,319
3,288,918
93,038
66,070,618
24,189
24,189
$ 66,046,429
Agency
Fund
422,993
422,993
422,993
422,993
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Changes in Fiduciary Net Assets
December 31, 2009
Additions
Contributions
Employer
Participants
Investment Income
Net Appreciation in Fair Value oflnvestments
Interest Income
Less Investment Expense
Total Additions
Deductions
Administration
Pension Benefits and Refunds
Total Deductions
Change in Net Assets
Net Assets
Beginning
Ending
See accompanying Notes to the Financial Statements.
28
$ 3,212,597
1,108,268
4,320,865
5,234,730
450,895
(128,042)
5,557,583
9,878,448
83,005
2,038,710
2,121,715
7,756,733
58,289,696
$ 66,046,429
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
I. 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.
A. Financial 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 fmancial statements present the
Village (the primary government) and its component units. In evaluating how to defme 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
fmancial benefit to, or impose a fmancial burden on, the primary government; or
(2) Fiscal dependency on the primary government.
The accompanying fmancial 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 fmancial statements.
B. 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 fmancial 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.
29
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
l. Summary of Significant Accounting Policies (Cont.)
B. Government-wide and Fund Financial Statements (Cont.)
Government-wide Financial Statements (Cont.)
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 fmes 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 fmancial 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 nomnajor 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 nomnajor 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, fmancing 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.
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.
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.
30
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
1. Summary of Significant Accounting Policies (Cont.)
C. Measurement Focus and Basis of Accounting and Financial Statement Presentation
The government-wide fmancial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund fmancial 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 fmancial 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, telecommunications, 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 fmancial reporting issued prior to December 1, 1989, generally
are followed in both the government-wide and proprietary fund fmancial 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.
D. 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.
31
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
I. Summary of Significant Accounting Policies (Cont.)
E. Cash and Investments
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 defmed 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).
F. Investments
Investments are stated at fair value.
G. Inventory 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.
H. 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.
32
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
1. Summary of Significant Accounting Policies (Cont.)
H. lnterfund Receivables/Payables (Cont.)
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.
I. 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 defmed 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:
Buildings
Well and System Improvements
Furniture and Equipment
Vehicles
20 years
5-50 years
2-10 years
2-12 years
Gains or losses from sales or retirements of capital assets are included in the operations on the Statement
of Activities.
J. 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.
33
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
1. Summary of Significant Accounting Policies (Cont.)
K. Sick Leave, Vacation Pay and Postretirement Benefits
Vacation pay does vest; employees may carry over vacation time equivalent of one full year's allowance.
All vacation hours carried over from the previous year must be used in the current year or be subject to
forfeit. 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
non vesting accumulating rights to receive sick pay benefits.
L. Long-Term Obligations
In the government-wide fmancial statements and proprietary fund fmancial 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 fmancial 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 fmancing sources while
discounts on debt issuances are reported as other fmancing 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.
M. Fund Equity
In the fund fmancial 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 fmancial resources. As of
December 31, the Village reported the following designated amounts:
General Fund-The Village has designated $9,005,069 for capital equipment replacement.
N. Accounting Estimates
The preparation of the fmancial 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.
34
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
I. Summary of Significant Accounting Policies (Cont.)
0. Eliminations 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.
2. Legal Compliance
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 fmancial 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 offmancing 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.
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.
General Fund actual expenditures for 2009 exceeded final budget by $722,083.
35
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
3. 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.
A. 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, 2009:
Maturities ~in Years 1
Fair Less Than 1 to 5 6 to 10 More Than
Value One Year Years Years 10 Years
U.S. Treasuries-Zero Coupon $11,503,341 966,853 3,601,743 3,909,644 3,025,101
U.S. Treasuries-TIPS 3,792,150 1,169,920 2,622,230
GNMAs 2,302 2,302
U.S. Agencies 71,226 71,226
Illinois Funds* 1,809,072 1,809,072
Illinois Metropolitan
Investment Fund* 8,633,171 8,633,171
Money Market Funds* 1,473,334 1,473,334
$27,284,596 4,249,258 13,404,835 6,605,402 3,025,101
*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.
B. 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.
C. 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.
36
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
3. Deposits and Investments (Cont.)
C. Credit Risk (Cont.)
Credit ratings for the Village's investments in debt securities as described by Standard & Poor's and
Moody's, respectively, at December 31, 2009 (excluding investments in U.S. Treasuries and GNMA's
which are not considered to have credit risk) are as follows:
Investment Type
U.S. Agencies
Illinois Funds
Illinois Metropolitan Investment Fund
Money Market Funds
NR -Not Rated
D. Concentration of Credit Risk
Ratings
AAA/Aaa
AAAINR
AAA/NR
AAA/NR
%of
Investment
Type
100%
100%
100%
100%
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, 2009, the Village's investments were not exposed to concentration of
credit risk.
E. 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, or his designee, 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. At year end the carrying amount of the Village's deposits totaled
$21,205,716 and the bank balances totaled $21,636,536. As of December 31, 2009, $45,103 of the
Village's investments were exposed to custodial credit risk.
4. 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.
37
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
4. Receivables-Property Taxes (Cont.)
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 2009 property tax levy is recorded as a receivable and deferred (unearned) revenue as it is intended to
fmance fiscal year 2010. 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.
5. Capital Assets
A. Governmental Activities
A summary of changes in capital assets for governmental activities of the Village is as follows:
Balances Balances
Janu~ I Additions Deletions December 31
Capital Assets Not Being Depreciated
Land $ 35,963,844 35,963,844
Construction in Progress 778,042 432,109 674,276 535,875
36,741,886 432,109 674,276 36,499,719
Capital Assets Being Depreciated
Buildings 20,832,378 551,233 21,383,611
Equipment and Vehicles 10,415,598 1,762,253 211,002 11,966,849
Land Improvements 606,285 606,285
Streets 19,040,719 19,040,719
Storm Sewers 37,665,289 37,665,289
87,953,984 2,919,771 211,002 90,662,753
Less Accumulated Depreciation For
Buildings 16,229,935 746,472 16,976,407
Equipment and Vehicles 6,996,032 767,467 209,315 7,554,184
Land Improvements 12,126 12,126
Streets 9,886,351 374,794 10,261,145
Storm Sewers 30,292,287 927,938 31,220,225
63,404,605 2,828,797 209,315 66,024,087
Total Capital Assets Being
Depreciated, Net 24,549,379 90,974 1,687 24,638,666
Governmental Activities Capital
Assets, Net $ 61,291,265 523,083 675,963 61,138,385
38
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
5. Capital Assets (Cont.)
B. Business-Type Activities
A summary of changes in capital assets for business-type activities of the Village is as follows:
Capital Assets Not Being Depreciated
Land
Construction in Progress
Capital Assets Being Depreciated
Buildings
Land Improvements
Equipment
Water/Sewer System Infrastructure
Less Accumulated Depreciation For
Buildings
Land Improvements
Equipment
Water/Sewer System Infrastructure
Total Capital Assets Being
Depreciated, Net
Business-type Activities Capital
Assets, Net
Balances
January 1
$ 6,198,514
$
283,814
6,482,328
10,284,359
1,966,488
94,510
55,853,653
68,199,010
4,493,595
1,897,259
94,510
26,821,705
33,307,069
34,891,941
41,374,269
C. Depreciation Charged to Functions/ Activities
Depreciation was charged to functions/activities as follows:
General Government
Public Safety
Public Works
Waterworks and Sewerage
Golf Courses
39
Additions Deletions
73,344 283,814
73,344 283,814
430,934
430,934
522,559
69,226
1,194,059
1,785,844
(1,354,910)
(1,281,566) 283,814
Governmental
Activities
$ 389,273
851,134
1,588,390
$ 2,828,797
Balances
December 31
6,198,514
73,344
6,271,858
10,284,359
1,966,488
94,510
56,284,587
68,629,944
5,016,154
1,966,485
94,510
28,015,764
35,092,913
33,537,031
39,808,889
Business-Type
Activities
1,194,059
591,785
1,785,844
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 3 2009
6. 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 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.
Changes in long-term debt were as follows:
Due
Balances Balances Within
Janua!)::1 Additions Reductions December 31 One Year
Governmental Activities
General Obligation Bonds
$4,500,000, 4.5%-4.9% General
Corporate Purpose Bond Series
of2001A; payable in annual
installments of$25,000 to $425,000
through December 31, 2020. $ 3,890,000 245,000 3,645,000 255,000
$5,485,000, 4.1%-4.4% General
Corporate Purpose Refunding
Bond Series of2001B; payable in
annual installments of$215,000 to
$645,000 through December 31, 2014. 1,975,000 520,000 1,455,000 215,000
$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. 405,000 130,000 275,000 135,000
$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 3 1, 20 13. 1,470,000 270,000 1,200,000 280,000
Total General Obligation Bonds 7,740,000 1,165,000 6,575,000 885,000
Accumulated Unpaid Sick Leave 1,002,725 381,379 106,989 1,277,115 39,820
Total Governmental Activities $ 8,742,725 381,379 1,271,989 7,852,115 924,820
Business-type Activities
Accumulated Unpaid Sick Leave $ 110,469 28,494 6,828 132,135
40
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
6. Long-Term Obligations (Cont.)
Annual Debt Service Requirements to Maturity
The annual requirements to amortize all debt outstanding as of December 31, 2009, for governmental activities
are as follows:
Governmental Activities
Year Ending General Obligation Bonds
December 31, Principal Interest
2010 $ 885,000 285,703
2011 1,015,000 251,198
2012 895,000 210,801
2013 925,000 174,812
2014 615,000 139,055
2015-2019 1,815,000 378,585
2020 425,000 20,825
$ 6,575,000 1,460,979
See also Note 15.
7. Employee Retirement Systems
A. Illinois Municipal Retirement
Plan Description
The Village's defmed 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 fmancial statements and
required supplementary information. That report may be obtained on-line at www.imrforg.
Funding Policy
As set by statute, employer regular plan members are required to contribute 4.50% of their annual covered
salary. The statutes require employers to contribute the amount necessary, in addition to member
contributions, to fmance the retirement coverage of its own employees. The employer contribution rate for
calendar year 2009 was 11.23% 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 Villages annual pension cost of$967,012 for the regular plan was equal to the Village's required and
actual contributions.
41
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
A. Illinois Municipal Retirement (Cont.)
Three-Year Trend Jriformation for the Regular Plan
Fiscal
Year
12/31/2009
12/31/2008
12/31/2007
Annual
Pension
Cost (APC)
$ 967,012
907,890
819,958
Percentage
ofAPC
Contributed
100%
100%
100%
Net Pension
Obligation
0
0
0
The required contribution was determined as part of the December 31, 2007 actuarial valuation using the
entry age normal actuarial cost method. The actuarial assumptions at December 31, 2006 included (a)
7.5% 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 10% 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 15% 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, 2007 was 23 years.
Funded Status and Funding Progress
As of December 31 2009, the regular plan was 73.06% funded. The actuarial liability for benefits was
$27,343,323 and the actuarial value of assets was $19,976,965, resulting in an underfunded actuarial
accrued liability (UAAL) of$7,366,358. The covered payroll (annual payroll of active employees covered
by the plan) was $8,610,969 and the ratio of the UAAL to the covered payroll was 86%. In conjunction
with the December 2009 actuarial valuation the market value of investments was determined using
techniques that spread the effect 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. In 2010, the unfunded
actuarial liability is being amortized on a level percentage of projected payroll on an open 30 year basis.
The Schedule of Funding Progress, presented as Required Supplementary Information following the Notes
to the Financial Statements, presents multi-year trend information about whether the actuarial value of plan
assets in increasing or decreasing overtime 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, 2008. 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, 2009.
42
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
B. 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 defmed 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.
The Police Pension Plan membership consisted of:
Retirees and Beneficiaries Currently Receiving Benefits
and Terminated Employees Entitled to Benefits but Not
Yet Receiving Them
Current Employees
Vested
Non vested
Total
29
53
~
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 armual
retirement benefit of2.5% offmal salary for each year of service up to 30 years, to a maximum of75% 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% offmal 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% offmal salary.
The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977
is increased armually, following the first armiversary date of retirement and 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.
43
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
B. Police Pension (Cont.)
Annual Pension Cost and Net Pension Asset
At December 31, 2009, the Village's annual pension cost was $2,036,812. The Village's actual
contribution was $1,722,986. For a description of the significant actuarial assumptions, see "Significant
Actuarial Assumptions."
The net pension obligation at December 31, 2009 was $98,176, comprised of the following components:
Annual Required Contribution (ARC) $ 2,038,612
Interest on the Net Pension Asset (5,877)
Adjustment on the ARC 4,077
Annual Pension Cost 2,036,812
Contributions Made 1,722,986
Decrease in Pension Asset (313,826)
Pension Asset at January 1, 2009 215,650
Pension Obligation at December 31, 2009 $ {98,176}
The net pension obligation of $98,176 is reported by the Village in the government-wide Statement of Net
Assets at December 31, 2009.
Three-Year Trend Information for the Police Pension Plan
Annual Percentage Net Pension
Fiscal Pension ofAPC Asset
Year Cost{APC} Contributed {Obligation}
12/31/2009 $ 2,036,812 84.59% (98, 176)
12/31/2008 1,752,254 106.66% 78,354
12/31/2007 1,426,580 98.30% 98,906
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.
44
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
C. Firefighters' Pension
Plan Description
Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defmed 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
Current Employees
Vested
Non vested
Total
13
48
_1.1
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 fmal 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 fmal 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.
45
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
C. Firefighters' Pension (Cont.)
Annual Pension Cost and Net Pension Asset
At December 31, 2009, the Village's annual pension cost was $1,903,182. The Village's actual
contribution was $1,489,611. For a description ofthe significant actuarial assumptions, see "Significant
Actuarial Assumptions."
The net pension obligation at December 31, 2009 was $231,674, comprised of the following components:
Annual Required Contribution (ARC) $ 1,905,833
Interest on the Net Pension Asset (8,656)
Adjustment on the ARC 6 005
Annual Pension Cost 1,903,182
Contributions Made 1 489,611
Decrease in Pension Asset (413,571)
Pension Asset at January 1, 2009 181,897
Pension Obligation at December 31, 2009 $ {231,6742
The net pension obligation of $231,674 is reported by the Village in the government-wide Statement of
Net Assets at December 31, 2009.
Three-Year Trend Information for the Firefighters' Police Pension Plan
Annual Percentage Net Pension
Fiscal Pension ofAPC Asset
Year Cost (APC) Contributed (Obligation)
12/31/2009 $ 1,903,182 78.27% (231,674)
12/31/2008 1,503,783 105.10% 181,897
12/31/2007 1,291,341 88.70% 105,055
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.
D. 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 conunitment
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.
46
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
E. Funded Status and Funding Progress -Pension Trust Funds
The funded status of the Police and Firefighters' Pension Plans as of December 31, 2008, the most recent
actuarial valuation date, is as follows:
Actuarial Unfunded UAALasa
Actuarial Accrued (Overfunded) Percentage
Value of Liability (AAL) AAL Funded Covered of Covered
Assets Entry Age (UAAL) Ratio Payroll Payroll
Plan {a) {b) (b-a) (alb) {c2 {b-a)/c
Police Pension $ 33,736,412 57,812,420 24,076,008 58.35% 5,831,457 412.86%
Firefighters' Pension 24,553,284 42,711,057 18,157,773 57.49% 5,208,552 348.61%
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 actuarial accrued liabilities for
benefits.
F. Significant Actuarial Assumption
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 Police Firefighters'
Retirement Pension Pension
Actuarial Valuation Date December 31, December 31, December 31,
2009 2008 2008
Actuarial Cost Method Entry Age Entry Age Entry Age
Normal Normal Normal
Asset Valuation Method Five-Year Three-Year Three-Year
Smoothed Smoothed Smoothed
Market Value Market Value Market Value
Amortization Method Level Percentage Level Percentage Level Percentage
of Projected of Projected of Projected
Payroll -Closed Payroll -Closed Payroll -Closed
Basis Basis Basis
47
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
F. Significant Actuarial Assumptions (Cont.)
Significant Actuarial Assumptions
(a) Remaining Amortization Period
(Years)
(b) Rate ofRetum on Investment of
Present and Future Assets
(c) Projected Salary Increases-
Attributable to Inflation
(d) Additional Projected Salary
Increases -Attributable to
Seniority/Merit
(e) Postretirement Benefit Increases
G. Individual Plan Financial Statements
Illinois
Municipal
Retirement
23
7.50%
Compounded
Annually
4.00%
Compounded
Annually
0.4% to 10.0%
3.00%
Statement of Fiduciary Net Assets-Pension Trust Funds
Assets
Cash and Cash Equivalents
Investments
Certificates ofDeposit
U.S. Govermnent and Agency Obligations
Open-end Mutual Funds
Receivables
Pension Contributions
Interest
Total Assets
Liabilities
Accounts Payable
Net Assets
Held in Trust for Pension Benefits
48
$
Police
Pension
25
7.50%
Compounded
Annually
5.00%
Compounded
Annually
Firefighters'
Pension
25
7.50%
Compounded
Annually
5.00%
Compounded
Annually
(Note: Separate Information
for (b) and (c) not available)
3.00% 3.00%
Compounded Compounded
Annually Annually
Police Firefighters'
Pension Pension
4,878,643 838,853
15,501,802
16,208,045
14,032,134 11,229,185
1,769,840 1,519,078
31,743 61,295
36,920,405 29,150,213
23,573 616
$ 36,896,832 29,149,597
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
G. Individual Plan Financial Statements (Cont.)
H.
Schedules of Funding Progress for the Plans are presented in the Required Supplemental Information
Section.
Statement of Changes in Fiduciary Net Assets-Pension Trust Funds
Police Firefighters'
Pension Pension
Additions
Contributions
Employer $ 1,722,986 1,489,611
Participants 601 882 506,386
2,324,868 1,995,997
Investment Income
Net Depreciation in Fair Value
of Investments 2,382,943 2,851,787
Interest Income 50,391 400,504
Less: Investment Expense {83,7072 {44,3352
2,349,627 3,207,956
Total Additions 4,674,495 5,203,953
Deductions
Administration 55,236 27,769
Pension Benefits and Refunds 1,458,840 579,870
Total Deductions 1,514,076 607,639
Change in Net Assets 3,160,419 4,596,314
Net Assets
Beginning 33,736,413 24,553 283
Ending $ 36,896,832 29,149,597
Other Post-Employment Benefits (OPEB)
Plan Description
In addition to providing the pension benefits described above, 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 defmed 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 as an irrevocable trust has not
been established. The Village does not issue a Plan financial report.
49
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
H. Other Post-Employment Benefits (OPEB) (Cont.)
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 2009, the Village
contributed $68,239 to the plan, including $68,239 for current premiums (approximately 20% of total
premiums). Plan members receiving benefits contributed $316,492, or approximately 80% of the total
premiums, through their required contribution of$463.09 per month for retiree-only coverage, $934.92 per
month for retiree and dependent coverage, and $1,640.23 per month for family coverage.
Annual OPEB Cost and Net OPEB Obligation
The Village's annual other post-employment 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 ofGASB 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)
Interest on the Net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB cost
Village Contributions Made
Increase in OPEB Liability
Net OPEB Liability at January 1, 2009
Net OPEB Liability at December 31, 2009
$ 123,689
123,689
68,239
55,450
67,615
$ 123,065
The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2009 was as follows:
Percentage
Annual of Annual
Fiscal OPEB OPEB cost NetOPEB
Year Cost Contributed Obligation
12/3112009 $ 123,689 55.20% 123,065
12/31/2208 239,435 71.76% 67,615
50
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
7. Employee Retirement Systems (Cont.)
H. Other Post-Employment Benefits (OPEB) (Cont.)
Funding Status and Funding Progress
As of December 31, 2009, the plan was 100% unfunded. The actuarial accrued liability for benefits was
$2,108,079, and the actuarial value of assets was $0 (zero), resulting in an unfunded actuarial accrued
liability (UAAL) of $2,108,079. The covered payroll (annual payroll of active employees covered by the
plan) was $19,764,651, and the ratio of the UAAL to the covered payroll was 10.67%.
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 multi-year 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 fmancial 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, the entry age actuarial cost method was used. The actuarial
assumptions included a 5.0% 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% initially, reduced by decrements to an ultimate rate of 6% ultimately. Both rates included a
3.0% 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.
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 fmancial condition of the Village.
Northwest Water Commission (NWWC)
The Village's water purchase contract with the Northwest Water Commission (Note ll.B) provides that each
member is liable for its proportionate share of any costs arising from defaults in payment obligations by other
members.
51
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
8. Contingent Liabilities (Cont.)
Solid Waste Agency of Northern Cook County (SWANCC)
The Village's contract with the Solid Waste Agency of Northern Cook County (Note 1l.A) provides that each
member is liable for its proportionate share of any costs arising from defaults in payment obligations by other
members.
9. Interfund Activities
A. To/From Other Funds
Individual interfund balances for the Village at December 31, 2009, are shown as follows:
Receivable Fund
Due to/from Other Funds
General Fund
Capital Projects Street
Maintenance Fund
Waterworks and Sewerage Fund
Payable Fund
Refuse Fund
Arboretum Golf Fund
Buffalo Grove Golf Course
Capital Projects Facilities Development
Facilities Development Debt Service
Facilities Development Debt Service
$
Amount
72,915
199,258
90,117
522,261
439,687
357,061
Interfund balances arise during the normal course of business and are generally closed by routine transfers
of cash between funds.
B. Transfers In/Out
Interfund transfers during the year ended December 31, 2009 consisted of the following:
Receiving Fund
General Fund
Capital Projects Faciliites Development
Facilities Development Debt Service
Motor Fuel Tax Fund
General Fund
Motor Fuel Tax Fund
Facilities Development Debt Service
Transferring Fund
Waterworks and Sewerage Fund
General Fund
General Fund
General Fund
Refuse Fund
Capital Projects Facilities Development
Facilities Development Debt Service
The purpose of the significant transfers is as follows:
Amount
$ 705,000
295,342
525,000
905,625
50,000
298,415
180,000
The General Fund transferred $525,000 for debt service to the Facilities Development Debt Service Fund,
$295,342 for capital projects to the Capital Projects Facilities Development Fund, and $905,625 for street
maintenance to the Motor Fuel Tax Fund.
The Capital Projects Facilities Development Fund transferred $298,415 for street maintenance to the
Motor Fuel Tax Fund.
The Waterworks and Sewerage Fund transferred $705,000 for administrative expenses to the General
Fund.
52
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
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.
The Village's payments to IRMA are displayed on the financial statements as expenditures/expenses in
appropriate funds. Each member assumes the frrst $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 ofloss 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 2008 and 2009 is below:
2009 2008 2007*
Unpaid Claims Liability-Beginning ofYear $ 226,252 486,816 491,845
Claims Incurred 3,407,284 4,051,848 2,910,738
Claims Paid (3,364,790) (4,312,412) (2,915,767)
Unpaid Claims Liability-End ofYear $ 268,746 226,252 486,816
*Prior to May 1, 2007, the Village reported a fiscal year ending April30.
53
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
11. Joint Ventures
A. Solid Waste Agency ofNorthem 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 0.70
Inverness 1.15 Wheeling 4.06
Kenilworth 0.81 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.
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.
54
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
11. Joint Ventures (Cont.)
A. Solid Waste Agency ofNorthem Cook County (SWANCC) (Cont.)
Summary Financial Jriformation of Joint Venture
Summary of Financial Position as of April30, 2009:
Current Assets
Capital Assets
Other Assets
$ 5,744,977
12,179,879
139,293
$ 18,064,149
Liabilities and Net Assets
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Assets
$ 3,636,265
5,982,799
9,619,064
8 445 085
$ 18,064,149
Summary of Revenue, Expenses and Changes in Net Assets for the year ended April30, 2009:
Operating Revenues
Operating Expenses
Operating Income
Nonoperating Expenses
Change in Net Assets
Net Assets
May 1
April30
$ 16,703,205
15,624,015
1,079,190
(50,316)
1,028,874
7,416,211
$ 8,445,085
Complete fmancial statements for SW ANCC can be obtained from the Agency's administrative office at
2700 Patriot Boulevard, Suite 110, Glenview, Illinois 60026.
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.
55
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
11. Joint Ventures (Cont.)
A. Solid Waste Agency ofNorthem Cook County (SWANCC) (Cont.)
Summary Financial Information of Joint Venture (Cont.)
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 $944,392 to SWANCC for the year
ended December 31, 2009.
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.
B. 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, fmance, operate and maintain a water supply system to serve its
members and other potential water purchasers.
56
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 3 2009
11. Joint Ventures (Cont.)
B. Northwest Water Commission (NWWC) (Cont.)
Description of Joint Venture (Cont.)
The four members of the Commission and their percentage shares as of the date of this report are as
follows:
Village of Arlington Heights
Village ofBuffalo Grove
Village ofPalatine
Village ofWheeling
%Share
35.29
18.52
27.97
18.22
100.00
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.
Summary Financial Information of Joint Venture for the fiscal year ended April30, 2009:
Liabilities and Net Assets
Current Assets
Restricted Assets
Capital Assets
Other Assets
$ 3,313,209
11,108,098
36,730,173
136,905
$ 51,288,385
57
Current Liabilities
Long-term Liabilities
Total Liabilities
Net Assets
$ 3,639,608
8,058,754
11,698,362
39,590,023
$ 51,288,385
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
11. Joint Ventures (Cont.)
B. Northwest Water Commission (NWWC) (Cont.)
Description of Joint Venture (Cont.)
Operating Revenues
Operating Expenses
Change in Net Assets
Net Assets
May I
April30
$ 9,582,762
9,758,675
(175,913)
39,765,936
$ 39,590,023
Complete fmancial 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.
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 armual 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.
58
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
11. Joint Ventures (Cont.)
B. Northwest Water Commission (NWWC) (Cont.)
Description of Joint Venture (Cont.)
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 $1,663,987 to NWWC for the year
ended December 31, 2009. The Village's equity interest in NWWC was $7,332,072 at December 31,
2009. 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 18.52%. In future years, this allocation percentage will be subject to change.
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.
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 August 2009, and terminates in calendar year 2020.
The terms of the agreement indicate that beginning in November 2000, the Village and the retailer shall
distribute on a monthly basis, the municipal sales taxes 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 July 2009, 80% to the retailer and 20% to the Village, in addition to
any interest accrued on such amounts; and
for August 2009 through 2020, 60% to the retailer and 40% to the Village .
59
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
13. Pledged Revenues (Cont.)
Not withstanding 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
2008;and
effective July 2009, there is no minimum municipal sales tax revenue guaranteed to the Village .
In the event that the municipal sales taxes retained by the Village fell below the minimum amount noted above,
1lte Village was to document t~e 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, 2009, amounted to
$2,613,467, of which $412,728 (or 16%) was remitted to the local retailer. Municipal sales taxes totaling
$49,359 was due to the local retailer as of December 31, 2009, and is included in accounts payable on the
statement of net assets and governmental funds balance sheet.
14. Operating Lease Commitments
15.
The Village has commitments with non-Village entities to lease certain property. Future minimum rental
commitments as of December 30, 2009 are as follows:
Year Ending
December 31, Amount
2010 $ 108,103
2011 110,265
2012 112,470
2013 114,720
2014 117,014
2015-2019 621,124
2020-2024 685,773
2025 96,353
$ 1,965,822
Subsequent Event
The Village issued $2.6 million (Series 2010B) bonds for the Village-wide Drainage Improvement Project and
$5.2 million (Series 2010A) bonds to refund existing general obligation debt to take advantage of bond rating
upgrades to AAA by both Standard & Poor's and Moody's Investor Services.
16. 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 ofthis Statement is to establish accounting
and fmancial 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.
60
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2009
16. New Governmental Accounting Standards (Cont.)
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 defmitions. 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 fmancial
statements.
61
REQURIED 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, 2009
Revenues
Charges for Services
Licenses and Permits
Fines and Fees
Property Taxes
Other Taxes
Investment Income
Miscellaneous
Total Revenues
Expenditures
Current
General Government
Public Safety
Public Works
Total Expenditures
Excess (Deficiency) of Revenues
over Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balance
Fund Balance
Beginning
Ending
See Note to Required Supplementary Information.
Original/Final
Appropriations
$
5,095,439
22,421,401
7,638,500
35,155,340
(35,155,340)
(3,050,0002
(3,050,0002
$ (38,205,3402
62
Final
Budget Actual
1,022,330 831,363
266,500 276,857
1,508,100 1,559,190
10,401,920 10,372,145
17,236,225 14,806,744
663,000 483,749
734,898 1,146,496
31,832,973 29,476,544
4,368,788 5,008,355
21,342,829 20,417,910
6,497,569 7,505,004
32,209,186 32,931,269
(376,213) (3,454,725)
705,000 705,000
(2,046,8292 (1,675,9672
(I ,341,8292 (970,9672
(1,718,0422 ( 4,425,692)
23,981,390
19,555,698
Variance
from Final
Budget
Over (Under)
(190,967)
10,357
51,090
(29,775)
(2,429,481)
(179,251)
411,598
{2,356,4292
639,567
(924,919)
1,007,435
722,083
(3,078,512)
370,862
370,862
(2, 707,6502
VILLAGE OF BUFFALO GROVE, ILLINOIS
Required Supplementary Information
Analysis of Funding Progress
December 31, 2009
Illinois Municipal Retirement Fund
(b) ((b-a)/c)
(a) Actuarial (b)-(a) UAALasa
Actuarial Actuarial Accrued Unfunded (a)/(b) (c) Percentage
Valuation Value of Liability (AAL) AAL Funded Covered of Covered
Date Assets Ent!1Age {UAAL} Ratio Pa~roll Pai:roll
2009 $ 19,976,965 27,343,323 7,366,358 73.06 % 8,610,969 85.55 %
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
(b) ((b-a)/c)
(a) Actuarial (b)-(a) UAALasa
Actuarial Actuarial Accrued Unfunded (a)/(b) (c) Percentage
Valuation Value of Liability (AAL) AAL Funded Covered of Covered
Date Assets Entry Age {UAAL} Ratio PaY!:oll PaY!:oll
2008 $ 33,736,413 57,812,420 24,076,007 58.35 % 5,831,457 412.86 %
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
(b) ((b-a)/c)
(a) Actuarial (b)-(a) UAALasa
Actuarial Actuarial Accrued Unfunded (a)/(b) (c) Percentage
Valuation Value of Liability (AAL) AAL Funded Covered of Covered
Date Assets Ent!1 Age {UAAL} Ratio Pa~roll Pai:roll
2008 $ 24,553,284 42,711,057 18,157,773 57.49 % 5,208,552 348.61 %
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 4,372,047 242.34
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
See Note to Required Supplementary Information.
63
VILLAGE OF BUFFALO GROVE, ILLINOIS
Required Supplementary Information
Employer Contributions
Year Ended December 31,2009
Illinois Municipal Retirement Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2009 $ 967,012 100.0 %
2008 907,890 100.0
2007 819,958 100.0
2006 800,153 100.0
2005 704,606 100.0
2004 666,772 100.0
2003 434,187 100.0
Police Pension Fund
Actuarial Annual
Valuation Required Percentage
Date Contribution Contributed
2008 $ 2,038,612 84.6 %
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
2008 $ 1,905,833 78.3 %
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
See Note to Required Supplementary Information.
64
VILLAGE OF BUFFALO GROVE, ILLINOIS
Required Supplementary Information
Other Post-Employment Benefits
December 31, 2009
Analysis of Funding Progress
Actuarial
Valuation
Date
12/3112008
12/3112007
$
(a)
Actuarial
Value of
Assets
Employer Contributions
Fiscal
Year
Ending
12/31/2009
12/31/2008
(b)
Actuarial
Accrued
Liability (AAL)
Entry Age
2,108,079
1,718,898
See Note to Required Supplementary Information.
$
(b)-(a)
Unfunded
AAL
(UAAL)
2,108,079
1,718,898
Required
Contribution
126,135
129,324
65
(a)/(b)
Funded
Ratio
%
Percentage
Contributed
54.10 %
38.80
(c)
Covered
Payroll
19,764,651
18,725,417
((b-a)/c)
UAALasa
Percentage
of Covered
Payroll
10.67 %
9.18
VILLAGE OF BUFFALO GROVE, ILLINOIS
Note to Required Supplementary Information
December 3 2009
I. 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.
66
COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET
FINANCIAL STATEMENTS AND SCHEDULES
GOVERNMENTALFUNDTYPES
NONMAJOR GOVERNMENT FUNDS-
COMrnnrrNGSTATEMENTS
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2009
Special Debt Capital
Revenue Service Projects Total
Assets
Cash and Equivalents $ 1,207,392 761,396 232,573 2,201,361
Receivables
Property Taxes 1,564,110 790,950 2,355,060
Motor Fuel Tax 88,855 88,855
Due from Other Funds 1 251,323 1,251,323
Total Assets $ 2,860,357 1,552,346 1,483,896 5,896,599
Liabilities
Accounts Payable and
Accrued Liabilities $ 87,701 58,320 146,021
Deferred Property Taxes 1,520,641 768,568 2,289,209
Due to Other Funds 796,748 522,261 1,319,009
Total Liabilities 1,608,342 1,565,316 580,581 3,754,239
Fund Balances
Unreserved
Designated for Employee Benefits 978,688 978,688
Undesignated 273,327 {12,9702 903,315 1,163,672
Total Fund Balances 1,252,015 {12,9702 903,315 2,142,360
Total Liabilities and
Fund Balances $ 2,860,357 1,552,346 1,483,896 5,896,599
67
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2009
Special Debt Capital
Revenue Service Projects Total
Revenues
Charges for Services $ 139,174 139,174
Intergovernmental 1,106,234 1,106,234
Property Taxes 1,384,620 747,743 2,132,363
Investment Income 2,998 262 3,872 7,132
Miscellaneous 60,836 237,278 298,114
Total Revenues 2,693,862 748,005 241,150 3,683,017
Expenditures
Current
General Government 588,467 588,467
Public Safety 464,835 464,835
Public Works 2,832,086 2,832,086
Capital Projects 1,245,940 1,245,940
Debt Service
Principal 1,165,000 1,165,000
Interest and Fiscal Charges 334,142 334,142
Total Expenditures 3,885,388 1,499,142 1,245,940 6,630,470
Deficiency of Revenues over Expenditures (1, 191,526) (751,137) (1 ,004,790) (2,947,453)
Other Financing Sources (Uses)
Transfers In 1,204,040 705,000 295,342 2,204,382
Transfers Out {298,4152 {298,4152
Total Financing Sources (Uses) 1,204,040 705,000 {3,073} 1,905,967
Net Change in Fund Balances 12,514 (46,137) (I ,007,863) (1,041,486)
Fund Balances
Beginning 1,239,501 33,167 1,911,178 3,183,846
Ending $ 1,252,015 {12,9702 903,315 2,142,360
68
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, 2009
Illinois Motor Retiree
Municipal Fuel Parking Health
Retirement Tax Lot Savings Total
Assets
Cash and Equivalents $ 27,353 54,165 136,287 989,587 1,207,392
Receivables
Property Taxes 1,564,110 1,564,110
Motor Fuel Tax 88,855 88,855
Total Assets $ 1,591,463 143,020 136,287 989,587 2,860,357
Liabilities
Accounts Payable and
Accrued Liabilities $ 69,540 2,308 4,954 10,899 87,701
Deferred Property Taxes 1,520,641 1,520,641
Total Liabilities 1,590,181 2,308 4,954 10,899 1,608,342
Fund Balances
Unreserved
Designated for Employee Benefits 978,688 978,688
Undesignated 1,282 140,712 131,333 273,327
Total Fund Balances 1,282 140,712 131,333 978,688 1,252,015
Total Liabilities and
Fund Balances $ 1,591,463 143,020 136,287 989,587 2,860,357
69
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2009
Illinois Motor Retiree
Municipal Fuel Parking Health
Retirement Tax Lot Savings Total
Revenues
Charges for Services $ 139,174 139,174
Intergovernmental 1,106,234 1,106,234
Property Taxes 1,384,620 1,384,620
Investment Income 272 2,726 2,998
Miscellaneous 26,023 34,813 60,836
Total Revenues 1,384,620 1,132,529 139,174 37,539 2,693,862
Expenditures
General Government 412,808 162,987 12,672 588,467
Public Safety 450,991 13,844 464,835
Public Works 571,417 2,243,128 17,541 2,832,086
TotarExpenditures 1,435,216 2,243,128 162,987 44,057 3,885,388
Deficiency of Revenues over Expenditures (50,596) (1,110,599) (23,813) (6,518) (1,191,526)
Other Financing Sources
Transfers In 1,204,040 1,204,040
Net Change in Fund Balances (50,596) 93,441 (23,813) (6,518) 12,514
Fund Balances
Beginning 51,878 47,271 155,146 985,206 1,239,501
Ending $ 1,282 140,712 131,333 978,688 1,252,015
70
VILLAGE OF BUFFALO GROVE, ILLINOIS
Illinois Municipal Retirement Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual
Year Ended December 31, 2009
Revenues
Property Taxes
Other Taxes
Investment Income
Total Revenues
Expenditures
General Government
Public Safety
Public Works
Total Expenditures
Net Change in Fund Balance
Fund Balance
Beginning
Ending
Original/Final
Appropriations
$ 1,570,000
1,570,000
451,576
493,344
625,080
1,570,000
$
71
Final
Budget Actual
1,469,668 1,384,620
7,500
750
1,477,918 1,384,620
431,254 412,808
471,143 450,991
596,951 571,417
1,499,348 1,435,216
~21,4302 (50,596)
51,878
1,282
VILLAGE OF BUFFALO GROVE, ILLINOIS
Motor Fuel Tax Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual
Year Ended December 31, 2009
Revenues
Intergovernmental
Investment Income
Miscellaneous
Total Revenues
Expenditures
Public Works
Deficiency of Revenues over Expenditures
Other Financing Sources
Transfers In
Net Change in Fund Balance
Fund Balance
Beginning
Ending
Original/Final
Appropriations
$ 4,000,000
4,000,000
4,000,000
$
72
Final
Budget Actual
1,248,335 1,106,234
200 272
15,000 26,023
1,263,535 1,132,529
2,300,000 2,243,128
(1,036,465) (1,110,599)
957,860 1,204,040
{78,605} 93,441
47,271
140,712
VILLAGE OF BUFFALO GROVE, ILLINOIS
Parking Lot Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual
Year Ended December 31,2009
Revenues
Charges for Services
Expenditures
General Government
Net Change in Fund Balance
Fund Balance
Beginning
Ending
73
Original/Final Final
Appropriations Budget Actual
$ 199,340 151,500 139,174
199,340 185,782 162,987
$ (34,282) (23,813)
155,146
131,333
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
Facilities Development Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual
Year Ended December 31, 2009
Revenues
Property Taxes
Investment Income
Total Revenues
Expenditures
Principal
Interest and Fiscal Charges
Total Expenditures
Deficiency of Revenues over Expenditures
Other Financing Sources
Transfers In
Net Change in Fund Balance
Fund Balance
Beginning
Ending
74
Original/Final Final
Appropriations Budget Actual
$ 1,577,500 785,338 747,743
1,400 262
1,577,500 786,738 748,005
1,200,000 1,165,000 1,165,000
377,500 334,685 334,142
1,577,500 1,499,685 1,499,142
(712,947) (751,137)
705,000 705,000
$ {7,9472 (46,137)
33,167
{12,9702
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, 2009
Street Facilities
Maintenance Development Total
Assets
Cash and Equivalents $ 34,667 197,906 232,573
Due from Other Funds 1,251,323 1,251,323
Total Assets $ 1,285,990 197,906 1,483,896
Liabilities
Accounts Payable and
Accrued Liabilities $ 21,342 36,978 58,320
Due to Other Funds 522,261 522,261
Total Liabilities 21,342 559,239 580,581
Fund Balances
Unreserved
Undesignated 1,264,648 (361,333) 903,315
Total Liabilities and
Fund Balances $ 1,285,990 197,906 1,483,896
75
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Year Ended December 31, 2009
Street Facilities
Maintenance Development Total
Revenues
Investment Income $ 3,847 25 3,872
Miscellaneous 54,152 183,126 237,278
Total Revenues 57,999 183,151 241,150
Expenditures
Capital Projects 389,644 856,296 1,245,940
Deficiency of Revenues over Expenditures (331,645) (673,145) (1,004,790)
Other Financing Sources (Uses)
Transfers In 295,342 295,342
Transfers Out ~298,4152 ~298,4152
Total Other Financing Sources (Uses) (298,415) 295,342 (3,0732
Net Change in Fund Balances (630,060) (377,803) (1,007,863)
Fund Balances
Beginning 1,894,708 16,470 1,911,178
Ending $ 1,264,648 {361,3332 903,315
76
VILLAGE OF BUFFALO GROVE, ILLINOIS
Street Maintenance Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances -Budget and Actual
Year Ended December 31, 2009
Revenues
Investment Income
Miscellaneous
Total Revenues
Expenditures
Capital Projects
Deficiency of Revenues over Expenditures
Other Financing Uses
Transfers Out
Net Change in Fund Balance
Fund Balance
Beginning
Ending
77
Original/Final Final
AEEfO£riations Budget Actual
$ 14,520 3,847
2,635,000 92,995 54,152
2,635,000 107,515 57,999
2,635,000 1,759,229 389,644
(1,651,714) (331,645)
{298,4152
$ {1,651,7142 (630,060)
1,894,708
1,264,648
VILLAGE OF BUFFALO GROVE, ILLINOIS
Facilities Development Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balances-Budget and Actual
Year Ended December 31, 2009
Revenues
Investment Income
Miscellaneous
Total Revenues
Expenditures
Capital Projects
Deficiency of Revenues over Expenditures
Other Financing Sources
Transfers In
Net Change in Fund Balance
Fund Balance
Beginning
Ending
78
Original/Final Final
AEErOEriations Budget Actual
$ 25
5,436,000 2,374,350 183,126
5,436,000 2,374,350 183,151
5,436,000 2,963,395 856,296
(589,045) (673,145)
589,045 295,342
$ (377,803)
16,470
{361,333}
ENTERPRISE FUNDS
Major Funds
Waterworks and Sewerage Fund-to account for the provision of water and sewer services to all residential
and commerciaVindustrial 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 (Major Fund)
Schedule of Operating and Nonoperating Revenues, Operating and
Nonoperating Expenses and Transfers-Budget and Actual (Budgetary Basis)
Year Ended December 31,2009
Operating Revenues
Water and Sewerage Charges
Connection and Recapture Fees
Total Operating Revenues
Operating Expenses
Excluding Depreciation
Less Capital Assets Capitalized
Total Operating Expenses
Operating Loss (Budgetary Basis)
Nonoperating Revenues
Investment Income
Transfers Out
Net Loss (Budgetary Basis)
79
Original/Final
Appropriations
$
12,633,504
(1,703,547)
10,929,957
(10,929,957)
(885,000)
$ (11,814,957)
Final
Budget Actual
8,644,475 7,956,955
71,300 51,405
8,715,775 8,008,360
10,753,572 8,829,391
(1,274,247) (504,281)
9,479,325 8,325,110
(763,550) (316,750)
277,500 98,317
(885,000) (885,000)
(1,371,050) (1,103,433)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Arboretum Golf Course Fund (Major Fund)
Schedule of Operating and Nonoperating Revenues, Operating and
Nonoperating Expenses and Transfers-Budget and Actual (Budgetary Basis)
Year Ended December 31, 2009
Operating Revenues
Daily Greens Fees and Memberships
Merchandise Sales
Cart, Club and Other Rentals
Miscellaneous
Total Operating Revenues
Operating Expenses Excluding Depreciation
Golf Operations
Cost of Sales -Pro Shop
Total Operating Expenses Excluding
Depreciation
Operating Loss
Nonoperating Revenues
Interest Income
Transfers
Transfers In
Transfers Out
Net Loss
80
Original/Final
Appropriations
$
1,429,268
65,000
1,494,268
1,494,268
(1,494,268)
(100,000)
(100,000)
$ (1,594,268)
Final
Budget
855,000
70,000
321,000
61,050
1,307,050
1,317,474
60,000
1,377,474
1,377,474
(70,424)
91,908
(75,000)
16,908
(53,016)
Actual
757,200
42,618
269,399
17,494
1,086,711
1,166,707
47,958
1,214,665
1,214,665
(127,954)
(127,954)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Net Assets
December 31, 2009
Buffalo Grove Refuse
Golf Course Service Total
Assets
Current
Cash and Equivalents $ 4,172 65,000 69,172
Receivables 87,069 87,069
Pro Shop Inventory 22,755 22,755
Total Current Assets 26,927 152,069 178,996
Noncurrent
Capital Assets, net of Accumulated Depreciation
Land 978,776 978,776
Buildings 346,888 346,888
Total Noncurrent Assets 1,325,664 1,325,664
Total Assets 1,352,591 152,069 1,504,660
Liabilities
Current
Accounts Payable and Accrued Liabilities 47,804 47,804
Due to Other Funds 90,117 72,915 163,032
Total Liabilities 137,921 72,915 210,836
Net Assets
Investment in Capital Assets 1,325,664 1,325,664
Unrestricted (110,994) 79,154 (31,840)
Total Net Assets $ 1,214,670 79,154 1,293,824
81
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses
and Changes in Net Assets
Year Ended December 31, 2009
Buffalo Grove Refuse
Golf Course Service Total
Operating Revenues
Daily Greens Fees and Memberships $ 855,959 855,959
Merchandise Sales 73,506 73,506
Cart, Club and Other Rentals 217,764 217,764
Driving Range Fees 70,439 70,439
SWANCC User Fees 1,004,431 1,004,431
Miscellaneous 15,868 15,868
Total Operating Revenues 1,233,536 1,004,431 2,237,967
Operating Expenses Excluding Depreciation
Golf Operations 1,242,620 1,242,620
Cost of Sales -Pro Shop 69,577 69,577
Refuse Operations 944,392 944,392
Total Operating Expenses Excluding Depreciation 1,312,197 944,392 2,256,589
Operating Income (Loss) before Depreciation (78,661) 60,039 (18,622)
Depreciation 54,992 54,992
Operating Income (Loss) (133,653) 60,039 (73,614)
Nonoperating Revenues
Interest Income, net of related expenses (24) (24)
Income (Loss) before Transfers (133,677) 60,039 (73,638)
Transfers
Transfers Out (50,000) (50,000)
Change in Net Assets (133,677) 10,039 (123,638)
Net Assets
Beginning 1,348,347 69,115 1,417,462
Ending $ 1,214,670 79,154 1,293,824
82
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
Year Ended December 31, 2009
Cash Flows from Operating Activities
Cash Received for Golf Activities
Cash Received for Refuse Services
Payments to Employees
Payments to Suppliers
Cash Flows from Noncapital Financing Activities
Transfers Out
Change in Due to/from Other Funds, Net
Cash Flows from Investing Activities
Interest Received, net of related expenses
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents
Beginning ofYear
End ofYear
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating Income
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities
Depreciation
Change in Assets and Liabilities
Inventory
Receivables
Accounts Payable and Accrued Liabilities
Total Adjustments
Net Cash Used in Operating Activities
83
Buffalo Grove
Golf Course
$ 1,233,536
$
$
$
(773,987)
(547,974)
(88,425)
1,668
2,504
4,172
{133,6532
54,992
(3,809)
{5,9552
45,228
{88,4252
Refuse
Service Total
1,233,536
917,362 917,362
(773,987)
(944,394) (1 ,492,368)
(27,032) (115,457)
(4,117) (2,449)
69,117 71,621
65,000 69,172
60,039 {73,6142
54,992
(3,809)
(87,069) (87,069)
{22 {5,9572
(87,0712 (41,8432
{27,0322 {115,4572
VILLAGE OF BUFFALO GROVE, ILLINOIS
Buffalo Grove Golf Course (Nonmajor Fund)
Schedule of Operating and Nonoperating Revenues, Operating and
Nonoperating Expenses and Transfers-Budget and Actual (Budgetary Basis)
Year Ended December 31, 2009
Operating Revenues
Daily Greens Fees and Memberships
Merchandise Sales
Cart, Club and Other Rentals
Driving Range Fees
Miscellaneous
Total Operating Revenues
Operating Expenses Excluding Depreciation
Golf Operations
Cost of Sales -Pro Shop
Total Operating Expenses Excluding
Depreciation
Operating Income (Loss)
Nonoperating Revenues
Interest Income, net of related expenses
Transfers
Transfers Out
Net Income (Loss)
84
Original/Final
Appropriations
$
1,506,238
75,000
1,581,238
1,581,238
(1,581,238)
100,000
$ (1,481,238)
Final
Budget
930,000
90,000
294,100
68,500
27,800
1,410,400
1,305,316
65,000
1,370,316
1,370,316
40,084
900
41,984
82,968
Actual
855,959
73,506
217,764
70,439
15,868
1,233,536
1,242,620
69,577
1,312,197
1,312,197
(78,661)
(24)
(78,685)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Refuse Service Fund (Nonmajor Fund)
Schedule of Operating and Nonoperating Revenues, Operating and
Nonoperating Expenses and Transfers-Budget and Actual (Budgetary Basis)
Year Ended December 31, 2009
Operating Revenues
SW ANCC User Fees
Operating Expenses
Refuse Operations
Operating Income
Transfers
Transfers Out
Net Income
85
Original/Final
Appropriations
$
1,300,000
(1,300,000)
$ (1,300,000)
Final
Budget Actual
1,044,560 1,004,431
1,023,730 944,392
20,830 60,039
20,830 10,039
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 aud 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, 2009
Assets
Cash and Equivalents
Investments
Certificates of Deposit
U.S. Government and Agency Obligations
Open-end Mutual Funds
Receivables
Pension Contributions
Interest
Total Assets
Liabilities
Accounts Payable
Net Assets
Held in Trust for Pension Benefits
86
Police Firefighters'
Pension Pension Total
$ 4,878,643 838,853 5,717,496
15,501,802 15,501,802
16,208,045 16,208,045
14,032,134 11,229,185 25,261,319
1,769,840 1,519,078 3,288,918
31,743 61,295 93,038
36,920,405 29,150,213 66,070,618
23,573 616 24,189
$ 36,896,832 29,149,597 66,046,429
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fiduciary Funds
Combining Statement of Changes in Fiduciary Net Assets -Pension Trust Funds
Year Ended December 31, 2009
Additions
Contributions
Employer
Participants
Investment Income
Net Appreciation (Depreciation) in
Fair Value of Investments
Interest Income
Less Investment Expense
Total Additions
Deductions
Administration
Pension Benefits and Refunds
Total Deductions
Change in Net Assets
Net Assets
Beginning
Ending
87
Police
Pension
$ 1,722,986
601,882
2,324,868
2,382,943
50,391
{83,7072
2,349,627
4,674,495
55,236
1,458,840
1,514,076
3,160,419
33,736,413
$ 36,896,832
Firefighters
Pension Total
1,489,611 3,212,597
506,386 1,108,268
1,995,997 4,320,865
2,851,787 5,234,730
400,504 450,895
{44,3352 {128,0422
3,207,956 5,557,583
5,203,953 9,878,448
27,769 83,005
579,870 2,038,710
607,639 2,121,715
4,596,314 7,756,733
24,553,283 58,289,696
29,149,597 66,046,429
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Schedule of Changes in Fiduciary Net Assets -Budget and Actual
Year Ended December 31, 2009
Additions
Contributions
Employer
Participants
Investment Income (Loss)
Net Appreciation in Fair Value
of Investments
Interest Income
Less Investment Expense
Total Additions
Deductions
Administration
Pension Benefits and Refunds
Total Deductions
Change in Net Assets
Net Assets
Beginning
Ending
88
Original/Final
Appropriations
$
75,000
1,500,000
1,575,000
$ {1,575,000}
Final
Budget Actual
1,740,156 1,722,986
622,950 601,882
2,363,106 2,324,868
892,359 2,382,943
171,250 50,391
{83,707}
1,063,609 2,349,627
3,426,715 4,674,495
58,000 55,236
1,438,040 1,458,840
1,496,040 1,514,076
1,930,675 3,160,419
33,736,413
36,896,832
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Schedule of Changes in Fiduciary Net Assets -Budget and Actual
Year Ended December 31, 2009
Additions
Contributions
Employer
Participants
Investment Income (Loss)
Net Appreciation in Fair Value
of Investments
Interest Income
Less Investment Expense
Total Additions
Deductions
Administration
Pension Benefits and Refunds
Total Deductions
Change in Net Assets
Net Assets
Beginning
Ending
89
Original/Final
Appropriations
$
90,000
625,000
715,000
$ (715,0002
Final
Budget Actual
1,493,888 1,489,611
505,365 506,386
1,999,253 1,995,997
407,569 2,851,787
452,500 400,504
{44,3352
860,069 3,207,956
2,859,322 5,203,953
75,000 27,769
570,369 579,870
645 369 607,639
2,213,953 4,596,314
24,553,283
29,149,597
VILLAGE OF BUFFALO GROVE, ILLINOIS
Agency Fund
School and Park Donations
Schedule of Changes in Fiduciary Net Assets
Year Ended December 31, 2009
Assets
Cash and Cash Equivalents
Liabilities
Due to Other Governments
Balances
Janua!}:: 1
$ 406,193
$ 406,193
90
Balances
Additions Deductions December 31
70,713 53,913 422,993
70,713 53,913 422,993
CAPITAL ASSETS USED IN THE OPERATIONS
OF GOVERNMENTAL FUNDS
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Assets Used in the Operation of Government Funds
Schedule of Capital Assets by Source
Year Ended December 31, 2009
Assets
Governmental Funds Capital Assets
Land
Construction in Progress
Buildings
Land Improvements
Equipment and Vehicles
Streets
Storm Sewers
Total Governmental Funds Capital Assets
Investment in Governmental Funds Capital Assets by Source
Capital Projects
From Current Revenues
Debt Issuance
Contributions
Total Governmental Funds Capital Assets
$ 35,963,844
535,875
21,383,611
606,285
11,966,849
19,040,719
37,665,289
$ 127,162,472
$ 5,926,436
7,138,633
20,449,070
93,648,333
$ 127,162,472
91
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Assets Used in the Operation of Government Funds
Schedule by Function and Activity
Year Ended December 31, 2009
General Government
Public Safety
Public Works
Land
$ 6,254,297
29,709,547
$ 35,963,844
92
Construction
in Progress
535,875
535,875
Buildings
7,251,692
9,786,096
4,345,823
21,383,611
Equipment
and Vehicles
1,223,181
6,674,465
4,069,203
11,966,849
Land Storm
Streets Improvements Sewers Total
14,729,170
16,460,561
19,040,719 606,285 37,665 289 95,972,741
19,040,719 606,285 37,665,289 127,162,472
93
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Assets Used in the Operation of Government Funds
Schedule of Changes by Function and Activity
Year Ended December 31, 2009
Balances Balances
January 1, December 31,
2009 Additions Deductions 2009
General Government $ 14,378,077 351,093 14,729,170
Public Safety 15,018,353 1,602,008 159,800 16,460,561
Public Works 95,299,440 724,504 51,203 95,972,741
$ 124,695,870 2,677,605 211,003 127,162,472
94
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statistical Section
This portion of the Village of Buffalo Grove's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the fmancial statements, note disclosures, and
required supplementary information says about the Village's overall economic condition.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the Village's
fmancial performance and well-being have changed over time.
Revenue Capacity
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
These schedules present information to help the reader assess the affordability of the
Village's current levels of outstanding debt and the Village's ability to issue additional
debt.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the Village's financial activities take place and to help make
comparisons over time and other governments.
Operating Information
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:
95-104
105-114
115-118
119-120
121-126
Unless otherwise noted, the information in these schedules is derived from the Village's Comprehensive Annual
Financial Reports for the relevant year. The Village implemented GASB Statement 34 in 2004; schedules
presenting government-wide information include information beginning in that year.
FINANCIAL TRENDS
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Assets by Component
Last Seven Fiscal Years
(See Following Page)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Assets by Component
Last Seven Fiscal Years
Fiscal Year
Governmental Activities
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Governmental Activities Net Assets
Business-type Activities
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Business-type Activities Net Assets
Primary Government
Invested in Capital Assets, Net of Related Debt
Restricted
Unrestricted
Total Primary Government Net Assets
*Transitional fiscal year May I, 2007 through December 31, 2007.
Data Source
Audited Financial Statements
95
2009
$ 54,563,385
140,712
16,590,052
$ 71,294,149
$ 39,808,889
15,011,209
$ 54,820,098
$ 94,372,274
140,712
31,601,261
$ 126,114,247
2008 2007* 2007
53,551,265 53,702,484 53,726,929
80,438 33,167 1,294,897
23,259,339 27,184,985 35,512,486
76,891,042 80,920,636 90,534,312
41,374,269 42,667,740 42,667,526
17,003,316 17,509,194 18,553,703
58,377,585 60,176,934 61,221,229
94,925,534 96,370,224 96,394,455
80,438 33,167 1,294,897
40,262,655 44,694,179 54,066,189
135,268,627 141,097,570 151,755,541
2006 2005 2004
53,188,591 49,264,115 48,009,890
1,425,988 4,955,378 4,368,460
37,786,827 34,551,091 34,708,597
92 401,406 88,770,584 87,086,947
43,646,133 44,123,414 45,491,776
18,300,838 18,375,098 17,690,967
61,946,971 62,498,512 63,182,743
96,834,724 93,387,529 93,501,666
1,425,988 4,955,378 4,368,460
56,087,665 52,926,189 52,399,564
154,348,377 151,269,096 150,269,690
96
VILLAGE OF BUFFALO GROVE, ILLINOIS
Changes in Net Assets
Last Seven Fiscal Years
Fiscal Year 2009 2008 2007* 2007
Expenses
Governmental Activities
General Government $ 6,182,475 5,705,497 4,019,032 4,686,330
Public Safety 22,753,590 21,115,737 15,324,061 18,951,546
Public Works 10,421,659 13,222,026 8,232,685 12,479,424
Interest 334,142 379,501 216,379 529,858
Total Governmental Activities Expenses 39,691,866 40,422,761 27,792,157 36,647,158
Business-type Activities
Water and Sewer 9,519,169 8,684,651 5,165,701 7,256,639
Refuse Service 944,392 1,017,164 777,716 1,024,248
Golf Courses 3,118,647 3,423,903 2,637,072 3,102,770
Total Business-type Activities Expenses 13,582,208 13,125,718 8,580,489 11,383,657
Total Primary Government Expenses $ 53,274,074 53,548,479 36,372,646 48,030,815
Program Revenues
Governmental Activities
Charges for Services
General Government $ 977,464 1,211,188 1,139,242 1,880,714
Public Safety 1,563,236 1,514,666 1,050,920 1,525,943
Public Works 50,709 94,670 94,670
Operating Grants and Contributions 1,349,044 1,307,895 950,383 1,532,557
Capital Grants and Contributions
Total Governmental Activities Program
Revenues 3,940,453 4,128,419 3,235,215 4,939,214
Business-type Activities
Charges for Services
Water and Sewer 8,008,360 7,538,534 4,799,193 6,694,051
Refuse Service 1,004,431 923,207 704,841 991,140
Golf Courses 2,320,247 2,356,962 2,141,860 2,323,919
Operating Grants and Contributions
Capital Grants and Contributions 133,599 497,875 450,000
Total Business-type Activities Program
Revenues 11,333,038 10,952,302 8,143,769 10,459,110
Total Primary Government Program Revenues $ 15,273,491 15,080,721 11,378,984 15,398,324
Net (Expense) Revenue
Governmental Activities $(35,751,413) (36,294,342) (24,556,942) (31, 707,944)
Business-type Activities {2,249,1702 {2,173,4162 {436,7202 {924,5472
Total Primary Government Net Expense ${38,000,5832 {38,467,7582 {24,993,6622 {32,632,4912
*Transitional fiscal year May 1, 2007 through December 31, 2007.
97
2006 2005 2004
4,582,741 4,701,408 4,749,920
18,137,721 16,822,265 16,396,186
11,441,440 9,523,240 9,550,018
1,217,883 994,708 877,924
35,379,785 32,041,621 31,574,048
7,168,405 6,780,153 6,843,943
956,915 971,980 936,573
3,333,644 3,101,134 3,236,932
11,458,964 10,853,267 11,017,448
46,838,749 42,894,888 42,591,496
2,048,850 1,683,585 1,802,120
1,553,949 1,476,845 1,358,439
192,193
1,218,020
3,602,799 3,160,430 4,570,772
7,688,143 6,279,172 6,322,045
990,113 975,290 957,435
2,567,759 2,637,717 2,592,370
1,444,395 1,915,746 1,106,103
1,867,859 760,726 2,361,256
14,558,269 12,568,651 13,339,209
18,161,068 15,729,081 17,909,981
(31,776,986) (28,881,191) (27,003,276)
3,099,305 1,715,384 2,321,761
(28,677,681) (27,165,807) (24,681,515)
(Cont.)
98
VILLAGE OF BUFFALO GROVE, ILLINOIS
Changes in Net Assets (Cont.)
Last Seven Fiscal Years
Fiscal Year 2009 2008 2007* 2007
General Revenues and Other Changes in Net Assets
Governmental Activities
Taxes
Property $ 12,504,508 12,058,815 706,749 10,214,926
Sales and Home Rule 7,196,969 8,436,647 5,741,981 8,619,267
Income and Use 3,601,619 4,646,776 2,725,204 4,280,237
Telecommunications 2,345,249 2,417,496 1,967,348 2,436,233
Property Transfer 670,762 590,596 600,379 980,213
Other 1,006,249 1,076,929 247,827 273,335
Investment Earnings 490,881 810,982 958,715 1,636,589
Miscellaneous 1,403,283 2,081,112 1,254,948 855,100
Transfers 935,000 80,230 899,950 544,950
Proceeds from Insurance Pool
Total Governmental Activities 30,154,520 32,199,583 15,103,101 29,840,850
Business-type Activities
Property 166,007
Investment Earnings (374,632) 267,263 292,375 445,766
Miscellaneous 1,315 187,034 131,982
Transfers {935,000} {80,230} {899,950} {544,9502
Total Business-type Activities {1,308,317) 374,067 {607,5752 198,805
Total Primary Government $ 28,846,203 32,573,650 14,495,526 30,039,655
Change in Net Assets
Governmental Activities $ (5,596,893) ( 4,094,759) (9,453,841) (1,867,094)
Business-type Activities (3,557,4872 0,799,349} {1,044,2952 (725,742)
Total Primary Government Change
in Net Assets $ {9,154,3802 {5,894,1082 {10,498,136} {2,592,836)
Data Source
Audited Financial Statements
99
2006 2005 2004
11,622,088 10,868,824 11,788,975
8,800,041 7,960,163 6,349,520
3,855,616 3,433,471 3,001,889
2,230,092 2,442,641 2,624,965
1,346,946 1,212,292 1,253,906
293,990 291,839 253,516
1,109,664 599,072 430,943
1,126,625 1,058,732 751,134
784,625 414,760 (203,740)
925,867
32,095,554 28,281,794 26,251,108
82,989 122,832 114,998
363,044 175,347 122,106
(784,625) (414,760) 203,740
(338,592) (116,581) 440,844
31,756,962 28,165,213 26,691,952
318,568 (599,397) (752,168)
2,760,713 1,598,803 2,762,605
3,079,281 999,406 2,010,437
100
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year 2009 2008 2007* 2007 2006
General Fund
Reserved $ 1,248,428 1,536,571 1,846,137 1,846,137 1,787,884
Unreserved 18,307,270 22,444,819 27,556,199 27,556,199 27,252,660
Total General Fund 19,555,698 23,981,390 29,402,336 29,402,336 29,040,544
All Other Governmental Funds
Reserved (12,970) 33,167 486,946 486,946 499,743
Unreserved, Reported In
Special Revenue Funds 1,252,015 1,239,501 1,942,258 1,942,258 1,813,406
Capital Projects Funds 903,315 1,911,178 2,436,815 2,436,815 3,888,047
Total All Other Governmental Funds 2,142,360 3,183,846 4,866,019 4,866,019 6,201,196
Total Governmental Funds $ 21,698,058 27,165,236 34,268,355 34,268,355 35,241,740
*Transitional fiscal year May 1, 2007 through December 31, 2007.
Data Source
Audited Financial Statements
101
2005 2004 2003 2002 2001
1,524,130 1,339,393 1,155,677 1,623,983 1,658,164
23,935,055 23,556,556 22,975,100 26,232,523 19,770,340
25,459,185 24,895,949 24,130,777 27,856,506 21,428,504
4,543,605 4,311,770 4,238,926 4,560,473 3,891,877
1,496,628 953,672 988,142 239,505 1,347,688
3,928,552 3,618,540 3,732,973 5,303,373 6,496,954
9,968,785 8,883,982 8,960,041 10,103,351 11,736,519
35,427,970 33,779,931 33,090,818 37,959,857 33,165,023
102
VILLAGE OF BUFFALO GROVE, ILLINOIS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year 2009 2008 2007* 2007 2006
Revenues
Property Taxes $ 12,504,508 12,058,815 5,797,846 10,402,764 11,245,966
Other Taxes 14,806,744 17,168,444 11,282,739 16,589,285 16,526,685
Licenses and Permits 276,857 278,965 245,148 825,691 836,279
Intergovernmental 1,106,234 1,134,407 815,669 1,253,319 3,110,490
Fines and Forfeitures 1,559,190 1,514,666 1,050,918 1,525,943 1,553,949
Charges for Services 970,537 1,200,381 1,028,810 1,334,260 1,414,337
Investment Income 490,881 790,244 911,444 1,562,291 1,094,843
Miscellaneous 1,444,610 2,081,112 1,254,948 855,101 1,126 625
Total Revenues 33,159,561 36,227,034 221387,522 34,348,654 36,909,174
Expenditures
Current
General Government 5,596,822 5,458,962 3,455,213 4,955,659 4,276,374
Public Safety 20,882,745 20,499,004 14,211,380 18,185,545 17,521,978
Public Works 10,337,090 10,792,931 7,225,387 9,319,231 8,011,071
Capital Outlays 1,245,940 1,286,175 502,701 1,945,053 2,285,510
Debt Service
Principal 1,165,000 1,150,000 1,312,381 1,234,765 6,020,700
Interest 334,142 379,501 424,220 476,736 1,440,436
Other charges
Total Expenditures 39,561,739 39,566,573 27,131,282 36,116,989 39,556,069
Excess (Deficiency) of Revenues
over Expenditures {6,402,1782 {3,339,5392 { 4,743,7602 {1,768,3352 {2,646,8952
Other Financing Sources (Uses)
Transfers In 2,909,382 4,121,451 3,064,166 3,453,845 3,586,075
Transfers Out (1,974,382) (4,041,221) (2, 164,216) (2,658,895) (2,895,578)
Bonds Issued
Discount on Bonds Issued
Total Other Financing Sources (Uses) 935,000 80,230 899,950 794,950 690,497
Net Change in Fund Balance $ {5,467,1782 {3,259,3092 {3,843,81 02 {973,3852 {1,956,3982
Debt Service as a Percentage of
Noncapital Expenditures 3.91% 4.00% 6.52% 5.01% 20.02%
*Transitional fiscal year May 1, 2007 through December 31, 2007.
Data Source
Audited Financial Statements
103
2005 2004 2003 2002 2001
11,715,601 12,463,170 9,874,681 10,333,002 10,184,512
15,340,405 13,483,796 13,207,726 15,174,770 14,341,241
860,838 764,834 1,724,062 1,361,482 1,487,324
2,283,034 1,218,020 1,222,699 1,196,099 1,323,889
1,476,845 1,200,967 914,637 1,557,281 1,180,755
822,748 1,386,951 693,936 358,808 628,471
599,072 430,943 622,866 1,176,088 1,770,949
1,058,732 902,824 208,422 704,610 916,779
34,157,275 31,851,505 28,469,029 31,862,140 31,833,920
4,326,708 4,044,058 6,431,336 7,064,048 5,174,278
16,390,156 16,411,219 15,931,648 15,762,282 15,316,592
7,189,290 6,783,338 3,047,952 4,140,949 3,880,322
750,020 1,498,844 6,065,692 3,279,431 1,558,890
3,362,814 3,521,160 3,167,250 2,967,264 2,349,400
905,008 998,046 1,220,546 1,075,663 1,251,789
90,148 199,508
32,923,996 33,256,665 35,864,424 34,379,785 29,730,779
1,233,279 (1,405,160) (7,395,395) (2,517,645) 2,103,141
2,770,109 9,503,218 2,978,357 2,079,470 1,598,275
(2,355,349) (2,879,098) (2,468,213) (1,532,325) (1,157,275)
2,600,000 2,376,284 10,023,604
{1,288,720} {5,417,342}
414,760 6,624,120 3 110,144 1,634,709 5,047,262
1,648,039 5,218,960 {4,285,2511 {882,936} 7,150,403
13.26% 14.23% 14.72% 13.00% 12.78%
104
REVENUE CAPACITY
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
(See Following Page)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed Value and Actual Value of Taxable Property
Last Ten Le Years
Tax Total
Levy Residential Commercial Industrial Other Assessed
Year ProEerty ProEerty ProEerty ProEerty Value
2009 $1,504,629,708 351,499,013 17,047,821 646,171 1,873,822,713 *
2008 1,483,527,804 364,403,255 5,048,950 804,975 1,853,784,984 *
2007 1,454,038,913 339,683,354 16,474,758 624,450 1,810,821,475
2006 1 ,298,156,901 365,502,946 12,732,486 830,074 1,677,222,407
2005 1 ,244, 784,253 350,475,595 12,209,000 795,945 1,608,264,793
2004 1,155,398,804 325,308,649 11,332,296 738,791 1,492,778,540
2003 1,078,494,828 303,655,927 10,578,013 689,616 1,393,418,384
2002 1,021,183,719 287,519,681 10,015,898 652,970 1,319,372,268
2001 937,809,471 268,320,644 9,875,235 661,025 1,216,666,375
2000 851,160,676 248,834,328 8,311,573 602,232 1,108,908,809
1999 825,943,840 240,554,475 8,387,367 790,102 1,075,675,784
*Cook County property class and assessed valuation is an estimate. Cook County information is not yet available.
Note: Total Direct Tax Rate is weighted for both Cook and Lake Counties.
Data Source
Offices of the Cook and Lake County Clerks
105
Estimated Estimated
Total Actual Actual
Direct Taxable Taxable
Tax Rate Value Value
N/A 5,621,468,139 33.333%
0.666 5,643,283,257 33.333%
0.0690 5,432,464,425 33.333%
0.6536 5,031,667,221 33.333%
0.6330 4,824, 794,3 79 33.333%
0.6421 4,478,335,620 33.333%
0.6539 4,180,255,152 33.333%
0.6448 3,958,116,804 33.333%
0.6643 3,649,999,125 33.333%
0.6798 3,326, 726,427 33.333%
0.6866 3,227,027,352 33.333%
106
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Rates -Direct and Overlapping Governments
Last Ten Levy Years
Comparative Tax Rates
(Per $100 Assessed and Egualized Valuation)
Tax Levy Year 2009 2008 2007 2006
Lake County (2)
Village ofBuffalo Grove 0.750 0.665 0.649 0.633
County, including Forest Preserve District 0.664 0.652 0.645 0.654
Combined School Districts (District #96,
District #125 and District #532) 5.301 5.102 5.066 5.318
Buffalo Grove Park District 0.351 0.370 0.380 0.403
Indian Trails Public Library District 0.301 0.222 0.219 0.317
All Other 0.094 0.092 0.092 0.094
7.461 7.103 7.051 7.419
Percentage Change -Year-to-Year 5.04% 0.74% -4.96% 3.08%
Cook County
Village ofBuffalo Grove N/A 0.670 0.729 0.731
County, including Forest Preserve District N/A 0.466 0.499 0.557
Metropolitan Water Reclamation District
of Greater Chicago N/A 0.252 0.263 0.284
Combined School Districts (District #21,
District #214 and District #512) N/A 5.004 5.035 5.613
Buffalo Grove Park District N/A 0.376 0.416 0.455
Indian Trails Public Library District N/A 0.308 0.297 0.320
All Other N/A 0.067 0.079 0.080
N/A 7.143 7.318 8.040
Percentage Change -Year-to-Year N/A -2.39% -8.98% 1.71%
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 Trail 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
107
2005
0.608
0.664
5.234
0.375
0.223
0.093
7.197
-2.00%
0.726
0.607
0.315
5.434
0.435
0.312
0.076
7.905
-1.15%
Comparative Tax Rates
(Per $100 Assessed and Equalized Valuation)
2004 2003 2002 2001 2000
0.603 0.615 0.626 0.647 0.637
0.684 0.715 0.734 0.799 0.752
5.300 5.144 5.077 5.026 5.199
0.349 0.387 0.365 0.355 0.426
0.325 0.265 0.267 0.316 0.305
0.120 0.101 0.105 0.043 0.152
7.381 7.227 7.174 7.186 7.471
2.13% 0.74% -0.17% -3.81% 5.27%
0.785 0.807 0.714 0.728 0.818
0.662 0.728 0.751 0.820 0.924
0.347 0.361 0.371 0.401 0.419
5.359 5.867 5.449 5.183 5.528
0.457 0.498 0.407 0.422 0.386
0.323 0.335 0.304 0.281 0.304
0.064 0.074 0.075 0.103 0.126
7.997 8.670 8.071 7.938 8.505
-7.76% 7.42% 1.68% -10.34% 4.09%
108
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Property Taxpayers
Current Fiscal Year and Six Years Ago
2009 2002*
Percentage Percentage
of Total of Total
Village
Taxable Taxable Equalized Equalized
Assessed Assessed Assessed Assessed
TaxEa~er Value Rank Valuation Valuation Rank Valuation
Amli at Chevy Chase, LP $ 22,307,549 1 1.19 % 13,810,599 2 1.05%
Chevy Chase Business Park 18,960,235 2 1.01 13,030,188 3 0.99
Hamilton Partners (1) 12,986,131 3 0.69 15,029,138 1.14
Millbrook 11,978,786 4 0.64
PenobscotManagement(3) 9,405,158 5 0.50 8,264,390 6 0.63
Riverwalk South LLC (2) 9,241,551 6 0.49 10,786,360 4 0.82
Rogers Center for Commerce ( 4) 9,012,393 7 0.48 8,340,994 5 0.63
Remax Consumer Plastics, Inc. 7,355,354 8 0.39
Inland Woodland LLC 6,895,030 9 0.37
NTL Shopping Plaza Inc. 6,587,600 10 0.35
Manufacturer's Life Insurance 5,988,180 10 0.45
Inland Real Estate Group 7,193,965 7 0.55
American National Bank 6,332,947 8 0.48
Courtesy Corporation 6,013,044 9 0.46
$ 114,729,787 6.11 % 94,789,805 7.20 %
*2002 is the most recent information available.
Note: Every effort was made to seek out and report the largest taxpayers. However, many of the taxpayers contain
multiple parcels, and it is possible that some parcels and their valuations have been overlooked.
(1) Previously HP Riverwalk II, LLC
(2) Previously Marack and Associates
(3) Previously The Wheatlands LLC
(4) Previously American National Bank and Trust of Chicago
Data Source
Offices ofthe County Clerk of Cook and Lake Counties
109
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Levies and Collections
Last Ten Fiscal Years
(See Following Page)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Levies and Collections
Last Ten Fiscal Years
Lake Coun~ CookCoun~
Collected Within the Collected Within the
Fiscal Year After the Levy Fiscal Year After the Levy
Levy Tax Percentage Tax Percentage
Year Levied Amount of Levy Levied Amount of Levy
2008 $ 9,648,296 9,639,444 99.91% 2,882,493 2,884,649 100.07%
2007 9,137,324 9,133,824 99.96% 2,937,238 2,932,507 99.84%
2006 8,389,127 8,383,359 99.93% 2,572,578 2,512,709 97.67%
2005 7,690,488 7,692,967 100.03% 2,492,952 2,474,867 99.27%
2004 7,068,040 7,063,323 99.93% 2,516,966 2,498,742 99.28%
2003 6,833,964 6,833,112 99.99% 2,277,392 2,270,357 99.69%
2002 6,496,642 6,493,138 99.95% 2,010,410 1,984,883 98.73%
2001 6,188,984 6,191,084 100.03% 1,893,528 1,891,611 99.90%
2000 5,676,190 5,671,695 99.92% 1,862,422 1,850,419 99.36%
1999 5,595,209 5,602,218 100.13% 1,790,022 1,798,926 100.50%
Notes: 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.
Data Source
Office ofthe County Clerk
110
Village Total
Percentage
Collected of Levy
12,524,093 99.95%
12,066,331 99.93%
10,896,068 99.40%
10,167,834 99.85%
9,562,065 99.76%
9,103,469 99.91%
8,478,021 99.66%
8,082,695 100.00%
7,522,114 99.78%
7,401,144 100.22%
111
VILLAGE OF BUFFALO GROVE, ILLINOIS
Sales Tax Revenue and Number of Principal Payers
Revenue by Category
Last Ten Calendar Years
2009
General Merchandise $ 4,637
Food 1,357,378
Drinking and Eating Places 941,804
Apparel 112,951
Furniture, Households and Radio 223,008
Lumber, Building and Hardware 716,935
Automotive Filling Stations 1,222,500
Drugs and Miscellaneous Retail 1,432,484
Agriculture and All Other 1,257,806
Manufacturers 399,141
$ 7,668,644
Total Number of Payers 975
Village Direct Sales Tax Rate 1.00%
Village Home Rule tax Rate 100.00%
Note:
2008
5,819
1,415,835
906,628
104,376
521,316
1,379,764
1,177,121
1,285,513
2,082,955
390,034
9,269,361
1,002
1.00%
1.00%
Calendar Year
2007 2006 2005
3,793 1,346 1,662
1,371,195 1,340,177 1,360,403
874,307 924,738 932,646
110,386 67,072 100,045
422,342 530,825 534,243
2,181,496 3,326,323 3,666,077
1,715,400 1,581,217 1,459,577
1,237,894 1,206,917 1,088,992
1,777,144 1,755,277 1,744,041
338,494 438,024 502,410
10,032,451 11,171,916 11,390,096
1,196 1,311 1,271
1.00% 1.00% 1.00%
1.00% 1.00% 1.00%
Blank categories have less than four taxpayers; therefore, no data is shown to protect the confidentiality of individual taxpayers.
Data Source
Illinois Department of Revenue
Offices of the Cook and Lake County Clerks
112
Calendar Year
2004 2003 2002 2001 2000
4,614
1,256,331 1,206,548 1,238,333 1,248,750 1,283,824
833,941 630,398 559,474 572,107 574,975
81,888 47,529 48,015 51,710 94,798
456,248 455,215 405,114 498,596 487,403
3,279,174 2,388,782 2,214,964 2,259,554 43,051
1,266,367 1,151,643 1,148,487 1,337,169 1,291,260
929,343 829,971 786,327 815,961 833,344
1,258,957 1,127,987 1,333,021 1,953,994 1,704,271
498,294 182,256 132,869 175,162 122,859
9,865,157 8,020,329 7,866,604 8,913,003 6,435,785
1,189 1,213 1,174 1,094 1,101
1.00% 1.00% 1.00% 1.00% 1.00%
0.50% 0.50% 0.50% 0.50% 0.50%
113
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
State of
Village Illinois
Fiscal Direct Sales Tax
Year Rate Rate
2009 1.00% 6.50%
2008 1.00% 6.50%
2007 * 1.00% 6.50%
2007 1.00% 6.50%
2006 1.00% 6.50%
2005 1.00% 6.50%
2004 1.00% 6.50%
2003 0.05% 6.50%
2002 0.05% 6.50%
2001 0.05% 6.50%
*Transitional fiscal year May 1, 2007 through December 31, 2007.
Data Source
Illinois Department of Revenue
114
DEBT CAPACITY
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratio of Outstanding Debt by Type
Last Ten Years
Ratio of
Business-Type Total
Governmental Activities Activities Outstanding
Tax Debt to Total
General Increment Special General Total Equalized Outstanding
Year Obligation Financing Service Area Obligation Revenue Primary Assessed Debt
Ended Bonds Bonds Bonds Bonds Bonds Government Valuation Eer Ca[!ita{l}
12/31/2009 $ 6,575,000 6,575,000 0.35% 145.63
12/31/2008 7,740,000 7,740,000 0.35% 175.91
12/31/2007* 8,890,000 8,890,000 0.49% 197.48
4/30/2007 10,202,381 174,768 10,377,149 0.62% 230.52
4/30/2006 11,437,146 345,003 11,782,149 0.73% 262.05
4/30/2005 12,597,846 3,400,000 1,460,000 689,303 18,147,149 1.22% 407.59
4/30/2004 13,530,660 4,150,000 3,140,000 1,034,647 21,855,307 1.57% 491.20
4/30/2003 14,201,820 5,505,000 4,635,000 1,367,443 25,709,263 1.95% 580.95
4/30/2002 12,374,070 6,490,000 6,045,000 1,710,930 26,620,000 2.19% 603.68
4/31/2001 12,050,984 7,360,000 7,390,000 2,019,016 28,820,000 2.60% 654.33
*Transitional fiscal year May 1, 2007 through December 31,2007.
December 31, 2007 represents an eight -month period.
Notes:
Details of the Village's outstanding debt can be found in the Notes to the Financial Statements.
(1) See the Schedule of Demographic and Economic Statistics for equalized assessed valuation of property and population data.
Personal income information is not available.
115
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage
Amounts of Estimated
Available Actual
General inDebt Taxable
Fiscal Obligation Service Value of
Year Bonds Fund Total Property (1) Per Capita
2009 $ 6,575,000 (12,970) 6,587,970 0.35% 145.63
2008 7,740,000 33,167 7,706,833 0.41% 171.10
2007 * 8,890,000 98,332 8,791,668 0.49% 196.73
2007 10,202,381 486,946 9,715,435 0.58% 219.46
2006 11,780,000 499,743 11,280,257 0.70% 254.81
2005 12,597,846 12,597,846 0.84% 291.65
2004 14,565,307 14,565,307 1.05% 339.02
2003 15,565,000 15,565,000 1.18% 361.14
2002 14,085,000 14,085,000 1.16% 327.56
2001 12,050,984 12,050,984 1.09% 280.85
*Transitional fiscal year May 1, 2007 through December 31, 2007.
Notes:
Details of the Village's outstanding debt can be found in the Notes to the Financial Statements.
(1) See the Schedule of Assessed Value and estimated Actual Value of Taxable Property for property value data.
116
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Governmental Activities Debt
As of December 31, 2009
Percentage of Village of
Debt Applicable Buffalo Grove
Gross to the Village of Share
Debt Buffalo Grove* of Debt
Overlapping Debt
School Districts
Cook County School District #21 $ 39,872,934 16.93% 6,750,488
Kildeer Countryside Community Consolidated #96 6,085,000 39.95% 2,430,958
Aptakisic-Tripp Community Consolidated # 102 6,855,000 75.54% 5,178,267
Lincolnshire-Half Day District #103 4,180,000 11.05% 461,890
Adlai E. Stevenson H.S. District #125 29,420,000 37.29% 10,970,718
Wheeling Township H.S. District #214 30,145,000 3.77% 1,136,467
Harper Community College #512 194,545,000 1.72% 3,346,174
College of Lake County #532 7,545,560 5.01% 378,033
Total School Districts 318,648,494 30,652,993
Other Than School Districts
Lake County 37,150,000 4.76% 1,768,340
Lake County Forest Preserve 266,575,000 4.76% 12,688,970
Cook County 2,826,300,000 0.25% 7,065,750
Cook County Forest Preserve 108,665,000 0.25% 271,663
Metropolitan Water Reclamation District 1,959,099,576 0.25% 4,897,749
Indian Trails Library District 780,000 46.88% 365,664
Buffalo Grove Park District 14,985,000 95.32% 14,283,702
Wheeling Park District 3,230,000 5.99% 193,477
Total Other Than School Districts 5,216,784,576 41,535,314
Total Overlapping Debt 5,535,433,070 72,188,308
Total Village of Buffalo Grove Direct Debt 6,575,000 100.00% 6,575,000
Total Direct and Overlapping Debt $ 5,542,008,070 78,763,308
*Determined by ratio of assessed valuation of property subject to taxation in the Village of Buffalo Grove to valuation of
property subject to overlapping unit.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by
the residents and businesses of the Village ofBuffalo 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.
117
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Legal Debt Margin
December 31, 2009
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as set by the General
Assembly.
118
DEMOGRAPHIC AND ECONOMIC INFORMATION
VILLAGE OF BUFFALO GROVE, ILLINOIS
Demographic and Economic Statistics
Last Ten Years
Equalized Per Capita
Fiscal Assessed Personal Unemployment
Year Population Value (EAV) EAV Rate
2009 45,148 (E) $ 1,873,822,713 41,504 7.9%
2008 45,043 (E) 1,881,094,419 41,156 6.5%
2007 * 44,688 (E) 1,810,821,475 40,521 3.7%
2007 44,500 (E) 1,677,222,407 37,690 3.2%
2006 44,270 (E) 1 ,608,264, 793 36,329 4.8%
2005 43,195 (A) 1 ,492, 778,540 34,559 5.6%
2004 42,963 (A) 1,393,418,384 32,433 5.2%
2003 43,100 (E) 1,319,372,268 30,612 4.7%
2002 43,000 (E) 1,216,666,375 28,295 4.5%
2001 43,000 (A) 1' 108,908,809 25,843 4.6%
2000 42,909 (E) 1,075,675,784 24,728 4.0%
(A) Actual
(E) Estimate
*Transitional fiscal year May 1, 2007 through December 31, 2007.
Note: Personal income data not currently available.
Data Source
U.S. Department ofLabor, Bureau ofLabor Statistics
119
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Village Employers
Current Year and Seven Years Ago
EmJ21oyer
Siemens Building Technologies
Rexam (I)
Allstate Insurance Company
Dominick's Finer Foods (three loations)
Plexus Corporation
Harris Trust & Savings Bank
Federal Express
Baxter Global Technical Services
RGRay
Village of Buffalo Grove
Amerisource Bergen
ASAP Software
Data Source
Village Records-earliest available records
(I) prior to 2005-Courtesy Corporation
EmJ21oyees
1,030
745
681
483
400
371
280
250
234
224
2009
Rank
1
2
3
4
5
6
7
8
9
IO
I20
2002
Percent Percent
of Total of Total
Village Village
PoJ2ulation EmJ21oyees Rank PoJ2ulation
2.3I% l,OI5 2 2.36%
1.70% 590 3 1.37%
2.24% I,3IO I 3.05%
1.09% 480 4 1.12%
0.90% 400 5 0.93%
0.79% 345 6 0.80%
0.56% 300 7 0.70%
0.56%
245 8 0.57%
0.55% 239 9 0.56%
0.50%
200 IO 0.47%
OPERATING INFORMATION
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Employees
Last Ten Years
(See Following Page)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Employees
Last Ten Years
Function/Program 2009 2008 2007* 2007 2006
General Govermnent
Administration
Village Manager's Office 4.5 5.0 5.0 4.5 4.5
Planning 1.5 1.5 1.5 1.5 1.5
Information Technology 3.5 3.5 3.5 3.5 3.0
Finance 9.0 9.5 9.5 9.5 9.5
Building and Zoning 10.0 10.5 10.5 10.5 10.5
Public Safety
Police
Full-Time Police Officers 71.0 71.0 71.0 70.0 70.0
Community Service Officers 3.0 3.0 3.0 3.0 3.0
Civilians 20.5 21.5 21.5 22.5 22.0
Fire
Full-time Firefighters/Paramedics 62.0 62.0 61.0 62.0 62.0
Civilians 6.0 6.0 6.0 6.0 5.0
Public Works
Pubic Works Administration 12.0 14.5 14.5 14.5 15.5
Streets/Forestry 20.0 20.0 20.0 20.0 19.0
Water and Sewer 13.0 14.0 14.0 14.0 13.0
Central Garage 5.5 5.0 5.0 4.0 5.0
Building Maintenance 4.0 4.0 4.0 4.0 4.0
Recreation
Administration 13.5 13.5 13.5 13.5 13.5
Grounds Maintenance 15.0 15.0 15.0 15.0 15.0
274.0 279.5 278.5 278.0 276.0
Recreation
Seasonal 34.0 34.0 34.0 34.0 34.0
*Transitional fiscal year May 1, 2007 through December 31,2007.
Data Source
Village Finance Department
121
2005 2004 2003 2002 2001
4.5 4.5 5.0 5.5 5.5
2.0 2.0 2.0 2.0 2.0
3.0 3.0 3.0 3.0 3.0
9.5 10.0 10.0 10.0 10.0
10.5 10.5 10.5 11.0 11.0
71.0 70.0 76.5 76.5 76.5
3.0 3.0 3.0 3.5 3.5
22.5 22.0 25.0 24.0 22.0
62.0 62.0 62.0 62.0 61.0
5.0 5.0 6.0 6.0 6.5
15.5 15.5 15.5 15.5 16.0
20.0 21.0 21.0 23.0 23.0
10.0 11.0 12.0 13.0 14.0
5.0 5.0 5.0 5.0 5.0
4.0 4.0 4.0 4.0 4.0
13.5 13.5 13.5 13.5 13.5
15.0 15.0 15.0 15.0 15.0
276.0 277.0 289.0 292.5 291.5
34.0 34.0 34.0 34.0 34.0
122
VILLAGE OF BUFFALO GROVE, ILLINOIS
Operating Indicators
Last Ten Fiscal Years
Function/Pro~Q:am 2009 2008 2007** 2007
General Government
Building and Zoning
Building Permits Issued 1,922 1,746 1,695 1,282
Building Inspections Conducted 6,633 5,054 21,383 13,416
Property Maintenance Inspections Conducted 2,348 2,159 2,962 3,448
Public Safety
Police
Physical Arrests 989 1,085 2,143 N/A
Parking Violations 3,267 3,451 4,721 N/A
Traffic Violations 11,373 15,795 12,010 N/A
DUI Arrests 267 337 482 N/A
Vehicle Crashes 1,414 1,786 1,555 N/A
Fire
Ambulance Calls/EMS 2,553 2,590 2,943 2,583
Service Call 718 751 678 684
Fire Call 774 881 858 788
Auto Aid/Mutual Aid 672 689 379 406
Public Works
Streets
Street Resurfacing (Miles) 4.94 4.94 8.23 8.30
Parks and Recreation
Park Sites 46 46 46 46
Golf Courses -Combined
Golf Rounds Played-Paid 59,723 58,097 60,258 61,005
Water
New Connections (Tap-ons) 7 25 33 98
Average Daily Consumption* 4.21 4.089 4.347 4.613
Peak Daily Consumption* 7.29 7.027 8.393 8.882
*(millions of gallon)
**Transitional fiscal year May 1, 2007 through December 31, 2007.
N/A-not available
Data Source
Various Village Departments
123
2006
2,011
14,744
4,530
2,489
4,751
12,010
457
1,692
2,668
614
810
315
8.25
46
60,678
6
5.094
9.791
2005
1,843
12,058
3,260
2,609
5,598
12,312
440
1,719
2,610
645
810
360
8.59
46
61,937
16
4.668
8.577
2004
2,099
11,597
3,057
2,673
4,990
10,181
452
1,842
2,622
682
788
403
6.95
46
60,275
66
4.733
9.024
2003
2,618
16,429
1,343
2,878
4,539
10,686
575
1,792
2,474
754
735
544
5.53
46
62,241
11
4.915
10.733
124
2002
1,721
NIA
N/A
3,076
5,704
10,240
504
1,805
2,454
713
689
547
3.42
46
63,317
48
4.729
10.238
2001
1,390
N/A
N/A
3,146
4,153
10,108
502
1,985
2,391
760
902
538
6.20
46
62,394
24
4.695
7.769
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Asset Statistics
Last Ten Fiscal Years
Function/Program
Public Safety
Police
Stations
Patrol Units
Fire
Stations
Fire Apparatus
Public Works
Streets
Streets (Miles)
Streetlights
Water
Water Mains (Miles)
Fire Hydrants
Wastewater
Sanitary Sewers (Miles)
*Transitional fiscal year May 1, 2007 through December 31, 2007.
Data Source
Various Village Departments
I25
2009
I
36
3
2I
II7.70
2,743
I79.82
2,474
139.27
2008
I
36
3
20
II7.50
2,714
I80.63
2,474
139.24
2007*
I
36
3
20
II7.50
2,614
I79.57
2,468
139.12
2007
I
35
3
20
II7.50
2,374
178.36
2,449
138.72
2006
1
35
3
20
117.50
2,374
178.36
2,449
138.72
2005
1
35
3
20
117.50
2,374
178.36
2,449
138.72
2004
1
35
3
20
117.50
2,374
178.36
2,449
138.72
2003
1
35
3
20
117.50
2,374
178.36
2,449
138.72
126
2002
1
35
3
20
117.50
2,374
178.36
2,449
138.72
2001
1
36
3
15
117.50
2,374
178.36
2,449
138.72