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2011 CAFRVillage of Buffalo Grove, Illinois Comprehensive Annual Financial Report For the Year Ended December 31, 2011 Prepared by Department of Finance and General Services 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 of Net Assets Statement of Activiti es 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 of Net 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 i vii viii 2-16 17-18 19-20 21 22 23 24 25 26 27-28 29 30 31-65 VILLAGE OF BUFFALO GROVE, ILLINOIS Table of Contents FfNANCIAL 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 Pens ion Fund Firefighters' Pension Fund Other Post-Employment Benefits Analysis of Funding Progress Employer Contributions Note to Required Supplementary Information COMBfNfNG, fNDIVIDUAL FUND, AND CAPITAL ASSET FfNANCIAL STATEMENTS AND SCHEDULES GOVERNMENTAL FUND TYPES NONMAJORGOVERNMENTALFUNDS-COMB~GSTATEMENTS 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 66 67 67 67 68 68 . 68 69 69 70 71 72 73 74 75 VILLAGE OF BUFFALO GROVE, ILLINOIS Table of Contents FINANC IAL SECT IO N COMBINING. INDIVIDUAL FUND. AND CAPITAL ASSET FINANC IA L STATEMENTS AND SCHEDULES (CONT.) GOVERNMENTAL FUND TYPES (CONT.) NONMA JOR SPEC IAL REVENUE FuNDS (CONT.) Motor Fuel Tax Fund Schedu le of Revenues , Expenditures and Changes in Fun d Balances -Budget and Actual Parking Lot Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual NONMAJOR DEBT SERV ICE FUNDS Faci lities Development Fund Schedule of Revenues , ExpenditUres and Changes in Fu nd Balances -Budget and Actua l NONMAJOR CAPI TAL PROJECTS FUNDS Combining Balance Sheet Combini ng Statement of Revenues, Expenditures and Changes in Fund Balances Street Maintenance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual Facilities Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual PAG E 76 77 78 79 80 81 82 VILLAGE OF BUFFALO GROVE, ILLINOIS T able of Contents FINANCIAL SECTION COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET FINANCIAL STATEMENTS AND SCHEDULES (CONT.) PROPRIETARY FUND TYPES MAJOR ENTERPRISE FUNDS 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 FUNDS Combining Statement of Net Assets Combining State ment 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 83 84 85 86 87 88 89 VILLAGE OF BUFFAW GROVE, ILLINOIS Table of Contents FINANCIAL SECTION . COMBINING, INDIVIDUAL FUND. AND CAPITAL ASSET . FINANCIAL STATEMENTS AND SCHEDULES (CONT.) FIDUCIARY FUNDS Combining Statement of Plan Net Assets -Pension Trust Funds Combining Statement ofChanges in Plan Net Assets -Pension Trust Funds · Police Pension Fund Schedule of Changes in Plan Net Assets -Budget and Actual Firefighters' Pension Fund Schedule of Changes in Plan Net Assets -Budget and Actual School and Park Donat ions -Agency Fund . Schedule 9fChanges in Fiduciary Net Assets CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Schedule of Capital Assets by Source Schedule by Function and Activity Schedule of Changes by Function and Activity STATISTICAL SECTION (UNAUDITED) Financial Trends Net Ass~ts by Component Changes in Net Assets Fund Balances of Governmental Funds Changes in Fund Balances of Governmental' Funds PAGE 90 91 92 93 94 . 95 96-97 98 99-100 101-104 105-106 107-108 VILL AGE OF BUFFALO GROVE , ILLINOIS Table of Contents STATISTICAL SECTION (UNAUD ITED) Revenue Capacity Assessed and Actual Value of Taxable Property Property Tax Rates -Direct and Overlapping Governments Principal Property Taxpayers Property Tax Levies and Co ll ections Sa les Tax Revenue and Numb er of Principal Pay ers -Revenue by Category Direct and Overlapping Sa les Tax Rates Debt Capacity Ratio of Outstanding Debt by Type Ratio of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Schedule of Lega l Debt Margin Demographic and Economic Information Demographic and Econom ic Statistics Principal Village Employers Operating Informat io n Full-Time Equ ivalent Employees Operating Indicators Capita l Asset Statistics .PAGE 109-110 11 1-112 113 114-115 116-117 118 119 120 121 122 123 124 125-126 127-128 129-130 INTRODUCTORY SECTION VILLAGE OF BUFFALO GROVE, ILLINOIS Officers and Officials December 3 1, 2011 JeffreyS. Braiman Village President J effrey Berman Lester Ottenheimer Andrew Stein Scott Anderson Director of Finance and General Services I Village Treasurer Steve Balinski Chief of Police Carol Berman Deputy Building Commissioner Robert Giddens Director of Management Information Systems Richard Kunekler, P.E. Village Engin_eer Arthur Malinowski, Esq Director of Human Resources Village Trustees * * * * * * * Dane Bragg Village Manager Janet M. Sirabian Village Clerk Beverly Sussman Mike Terson Steve Trilling Carmen Molinaro Director of Golf Operations Ghida Neukirch Deputy Village Manager Robert Pfeil Village Planner Brian Scheehan Deputy Building Commissioner Katie Skibbe Assistant Finance Director Terrence Vavra Fire Chief W --LU--GE--OF--------------------------------~ BUFFALO GROVE -v- Fifty Raupp Blvd. VILLAGE Of Buffalo Grove , IL 60089-2100 Phone 847-459-2500 Fax 847-459-0332 June 22, 2011 The Honorable Jeffrey Braiman Members of the Village Board Citizens ofthe 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, 2011. These ordinances and statutes require that the Village issues an annual rep ort 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 w ith generally accepted auditing standards by an in dependent fi .rm of certified public accountants. Management assumes full responsibility for the completeness and reliability of all of the information presented in the report based upon a comprehensive internal control framework. Because the cost of internal controls should not outweigh their benefits, the Village 's comprehensive framework of internal controls bas been designed to provide reasonable rather than absolute assurance that the financ ial statements will be free from material misstatement. The Village's fmancial 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 financia l statements of the Village of Buffalo Grove for the fiscal year ended December 31 , 2011 , are free of material misstatement. 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, 2011, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the fmancial 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 financ ial statements. MD&A comp lements this letter of transmittal and should be read in conjunction with it. Pro file of t he V ill age of Bu ffa lo Grove The Village of Buffalo Grove was incorporated March 7, 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 9.2 0 square miles and, based on the 2010 U.S. Census, serves a population of 41 ,496. The Village of Buffalo Grove is empowered to levy a property tax on real property located within its boundaries. It is also empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The Village became a home rule unit by referendum on July 1, 1980, giving it additional powers to tax and regulate in ways not specifica lly granted, or prohibited, by the Illinois Constitution. The Village operates under a Council/Manager form of government. Policy making and legislative authority are vested w ith the Village Board, which consists of a President and a s ix member Board of Trustees. The Village Board is responsible, 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, developing and presenting an annual budget, overseeing the day-to-day operations of the Village, and appointing department directors. II The Board is elected on a non-partisan basis. Board members are elected to four-year staggered terms with t hree board members elected every two years . The President and C lerk are elected to four-year terms. All elections are at large. The Village provides a full range of services including, police and fire protection, construction and maintenance of streets and infrastructure, Village planning and zoning, water and sewer utilities, and general administrative services. The Village also operates two golf courses and a municipal commuter parking lot. To provide these services there were 234 full-t ime and 94 part-time/seasona l positions in the Fiscal Year 201 1 annual budget. The Village of Buffalo Grove is considered a desirable residential community due to the highly rated school systems with high schools receiving the U.S. Department of Education award of Blue Ribbon Schools, award winning park district faci li ties and programs, two libraries in close proximity to the Village, and more than 400 acres of parks and open space. Region al transportation can be accessed through the Tri-State Toll way (1-294) that provides a direct connection to Chicago or Milwaukee, Route 53 just two m il es to the west provides access to 1-290 and l -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. Financ ia l Pla nning & C ontrol The annual budget serves as the foundation for the Village 's financial planning and as a management control document. Legal s pend ing 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 fina l budget no later than December 31 51 of each year. The appropriated budget is prepare d by fund , and department (e.g., police). Department d irectors may make transfers of appropriations within a department. Transfers of appropriatio ns between departments and fund/accou nt g roups, however, require the special approval of the Village Board . The accounts ofthe V illage are organized on the basis of funds, each of wh ich is considered a separate and distinct accounting entity. The operat ions of each fu nd are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenu es and expenditures. Revenues are allocated to and accounted for in individual funds based upon the purpose for which they are to be expended and the means by which spending acti vities ar e controll ed. T he accountin g records for general governmental operations are maintained on the modified accrual basis, with revenues being ·recorded when available and measurable and expenditures being recorded when the material or services are received and the liabi lity is incurred. Accounting records for the Village's enterprise funds , internal service funds , agency funds and pension trust funds are maintained on the accrual basis of accounting. F a ctors Affecting Fina n c ia l C ondit.io n L ocal Econ o mic Outloo k Nearly 700 businesses are licensed in the Village of Buffalo Grove and are located within 21 plan ned shopping centers and industrial parks. Sales taxes are an important component of the Vi ll age's revenue profi le and 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 n,ew 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. The impact of the nationwide recession on the Village's tax revenues appears to have plateaued. Ill • Sales taxes (municipal and home rule) totaled $6,984, 134 which is a decrease from the previous year's total of $7,309,800. The entire decline is due to a $.5 million sales tax nexus error that was repaid in the current year. • Prepared food and beverage tax revenues increased from $691,1 14 to $7 12,789. • Rea l estate transfer taxes generated $629,375 in 20 II versus $545 ,5 15 in 2010. • Simplified telecommunications tax revenues decreased from $2 ,183,190 to $2,134,462. Employment levels in the Village have traditionally exceeded regional and state averages. As of December31 , 2011 the Village ~s unemployment rate was estimated to be 7.1 percent, compared to 9.5 percent for Lake County, 9.7 percent for Cook County, 9.3 percent for the State of Illinois, and 8.3 percent for the United States. Lo ng-term Fina nc ia l Planning The unassigned fund balance (previously noted as unreserved/undesignated) of the General Fund will again exceed the 25 percent threshold of the subsequent year's budgeted expenditures, less transfers to pensions, which is the policy established by the Village Board. Unassigned Budgeted Fiscal Year Ended Fund Balance Expenditures Percent December 31, 2007 $ 14,872,103 $ 30,202,380 49.24% December 3 I, 2008 $ 11,587,937 $ 31,021,971 37.35% December 31, 2009 $ 9,005,069 $ 29,418,559 30.6 1% December 31, 201 0 $ 9,563 ,655 $ 29,266,181 32.68% December 31, 20 I I $ 9,87 1,895 $ 29,271,054 33.73% Where financially prudent, the Vill age strives to maintain a pay-a.s-you-go approach to funding capital projects and equipment. Reserves are set aside and committed for capital replacement. The Village assesses its capital needs by publish.ing a five year Capital Improvement Plan (ClP) annually. This document is a p lanning tool to identify short and medi um term capital needs (facilities, infrastructure and roadways) and measure those demands against the Village 's ability to pay . For a project to be incorporated into the CIP, it must involve the creation, improvement, or acquisition of a tangible asset with an original cost of at least $25,000. Within the next five years it is anticipated that the Village will require nearly $38 million in capital improvements. Transportation-related projects represent a large percentage of the improvements at $25 million. Routine maintenance of existing streets accounts fo r $24 million of those projects. Approximately $6.4 million is allocated to improving and maintaining the water utility system. One s ignificant facility project is contemplated in the next five years. The project is the expansion of the Public Service Center and will address functional issues related to space constrai nts. Two long-term planning documents were submitted to the Village Board in 2011, a five year pro-forma for . the General Fund and a twenty year Water Fund pro-forma for water rate adequacy. Those reports will be revised on an annual basis and used to develop the Village 's short and long term financial plans. Maj o r Initiatives Buffalo Grove continues to be a premier and desirable commul')ity to live and work. The Village 's economic development approach remains aggressive as the V ill age is committed to quality development, IV business outreach, and community planning. The Economic Development Work P lan identifies efforts to be made and strategies to follow to work with property owners, developers, brokers , retailers and others for continued economic prosperity and enhanced vitality of the Village. Following are highlights of the overall permit activity in the Village for calendar year 20 II: Type of Permit Num ber of Permits Constru ction Valuation Residential 1,461 $ 15 ,281,815 Commercial 44 4,590,697 Office 24 7,277,796 Industrial 29 4,432,208 Other 349 4,446,428 Public/Semi-Public 23 215,354 Total 1,930 permits $ 36,244,298 The Village has worked with property owners, developers, architects, brokers, and others in the real estate indu stry to market avai lable property. When a business is secured for a lo cation, the Village's efficient plan review and permit process ensures that the business is approved for occupancy in the most expedited manner possible. Below are a few notable commercial, industrial and residential developments from 2011. CommerciaVlndustria l: Connexion. 1700 Leider Lane The Village worked diligently with this notable corporate headquarters as part of their business expansion and relocation to the Aptakisic Creek Corporate Center in Buffalo Grove. The business occupies 61 ,4 16 square feet in the Center. Connexion is a full service provider of electrical and energy business solutions. They service the electrical contracting, commercial, datacomm , industrial , and energy services markets, and offer a variety of electrical, lighting, and datacomm products from manufacturer s in the electrical industry . In an effort to maintain Connexion's business in Buffalo Grove and to assist w ith the relocation and expansion plans, the Village Board offered a seven-year economic ince ntive to the growing business. Leica Microsystems. 1700 Leider Lane In March 20 II , Leica M icrosystems established their North American Headquarters in Buffalo Grove. They operate within 63 ,601 square feet in the Aptakisic Creek Corporate Center. This German company specializes in microscopes and imaging equipment for medical, scientific a nd industrial use. Plaza Verde Shopping Center. 1205-1209 Dundee Road In the Fall of 20 II , the Village approved a three-unit outlot as an amended PlanJ1ed Unit Development to renovate a portion of the shopping center. The Village worked dilige ntl y with the property owner to replan th e southw est comer of Arlington Heights Road and Dundee Road, and worked with the owner to secure leases for three growin g businesses -Starbuck 's, Noodles & Co., and Moe 's. The newly constructed building is a total of7, 168 square feet. Jump Zone. 1465 Busch Parkway TBAS Entertainment LLC received special use approval from the Village Board to operate Jump Zone, an indoor play center in the Industrial District. This 12,721 square feet recreational use shares space in the multi-tenant building with notable businesses Tanstaafl Electric Cable Inc ., Joy of the Game Baseball & Softball Academy, Eitel Heineman Mechanical Services (EHMS), Allen Visual Systems and Kids & Com pany. v Sysmex America. 170 I Leid er Lane Sysmex is a global leader in the desi gn an d development of high-quality, reli abl e and innovative clinical diagnosti c hematology, coagulation and urinalysis. Th is business relocated to the Aptakis ic Creek Corporate Cen ter and operates fro m 146,850 square feet. R es id ential: The Village oversaw th e construction and wo rk ed with the construction teams for the new development of II hom es in Buffal o Grove: Village: Waterbury P lace , 4 homes Fairview Estates, 4 homes Villas of Buffalo Grove, 2 homes Whi spering Lakes Estates, I hom e Significant projects an d initiatives brou ght forth by the Vill age include: Completed the installation of a deep well to additional wate r capacity to s atisfy backup water for the ex isti ng water system. Offered a Voluntary Separation Incentive to defray labor costs and create opportunities to reduce . positions. App roved a Tier II compensation schedu le to redu ce entry level s alaries . Entered in to the Intergovernmental Professional Benefits Cooperative (IPB C) to pool health · in s urance risk with approximately seventy other municipalities. Awards and acknowled gments. The Government Fin ance Officers Association (GFOA) awarded a Ce rtificate of Achievement for Exce ll ence in Financial Reporting to the Village of Buffa lo Grove for its com preh ensive annual financial report (CA FR) for the fiscal ye ar ended Dec ember 31, 20 I 0. Thi s was the thirtieth consecutive ye ar that the government has received this prestigious award . In order to be awarded a Ce rtificate of Achi ~ve ment, the gov ernm ent publi shed an easi ly read ab le and effic ientl y organized C AFR. This rep ort satisfi es both G AAP and applicable legal requirements. A Certificate of Ac hi evement is va lid for a period of one ye ar only. We believe that our current CAF R continues to meet the Certificate of Achi evement Program's requirements and we are submitting it to the GFOA to dete rm ine its eligibility for another certificate. The prep aration of thi s report would not have bee n possible without the effic ient an d ded icated .services of th e entire sta ff o f the Finance Department es pe ciall y Assi stant Finance Director Katie Skibbe. Cred it also must be given to the Vi llage President and Board of Tru stees, and the Vi llage Manager for their assistance in planni ng and conducting the fiscal affairs of the Village in a responsib le manner. v Certificate of Achievement for Excellence in Financial Reporting Presented to . Village of Buffalo Gro ve Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31,2010 A Certificate of Achievement for ExceUence 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 (CAFR.s) achieve the highest standards in government accounting and financial reporting. Executive Director vti ;5. 1-'· 1-'· ~Village of Buffalo Gro ve Organiz ation Chart ~ Patrol · EMS ~il ding/Zoning H I Finance-General Srv. lnvestig./Youth Srv. Fire Supp./Rescue I Information Tech. H I Human Resrcs. Admn. Services !·Prevent/Education ~ ! Commu nications . ~ I Deputy Village Clrk. Po li ce Records I Plann ing I Commissions. Commit!ccs, & Boards :· Arts Commission Plan Commission · Blood Donor Com.mission Police Pension Fund Board of Health . Electrical Commission· Zoning Board of Appeals· Po lice & Fire Comm ission Firefighter Pens ion Fund Residents with Disabilities Finance Com mittee Administ rat ion ·Eng ineering Operations Buildings Centra l Garage Forestry Streets Water/Sewer ''--c--,j . ESDA Buffalo Grove G. C. Arboretum G.C. FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT Wolf&Company LLP Certified Public AccountnntJ To the Honorable Village President Members of the Board of Trustees Village of Buffalo Grove, Illinois INDEPENDENT AUDITOR'S.REPORT Wolf~ COmpany Oakbrook Terrace • Chicago We have audited the accompanying financial 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, 2011, which collectively comprise the Village's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Village of Buffalo Grove, IUinois: 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 fmancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, th~ respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information ofthe Village of Buffalo Grove, Illinois, as of December 31,2011, and the respective changes in financial pos ition and cash flows, where applicable thereof, for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Note 15 to the financ ial statements, the Village adopted Governmental Accounting Standards Board No. 54, which resulted in certain changes in the reporting of fund types and fund balance classifications for governmental funds during the year ending December ·31, 20 11 . The required supplementary information which includes management's discussion and analysis (pages 2 through 16), budgetary comparison information, and pension and other post-employment related information (pages 66 to 70) 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 meas urement 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 fmancial statements that collectively comprise the financial statements of the Village of Buffalo Grove, Illinois. The eombining, and individual nonrnajor 'fund financ ial statements and other schedules listed in the table of contents as supplementary information (pages 72 to 98), are presente d for purposes of additional analysis, and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the ·basic fmancial statements taken as a whole. The accompanying introductory section and statistical section listed in the table of contents are presented for additional analysis and are not a required part of the basic financial statements. This information has no~ been subjected to the auditing procedures applied in the audit of.the basic financial statements and, accordingly, we ·express no opinion on them. Oakbrook Terrace, Illinois June 22,2012 PKF A PKF International Member Firm 1901 S. Meye r·s Road, Suite 500 A Oakbrook Terrace, Illi~ois 6018 1-5209 630.545.4500 main • 630.574.7818/tl.>: A www.wo lf'cpa.com MANAGEMENT'S DISCUSSION AND ANALYSIS VILLAGE OF BUFFALO G ROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 The Management's Di scussion and Analysis (MD&A) offers the readers of the Village of Buffalo Grove's financia l statements this narrative overview and analysis of the financial activities of the Village of Buffalo Grove for the fiscal year ended December 31, 2011. This information presented here should be considered in conjunction with additional information provided in the letter of transm ittal, which is found on pages ii-vi. Financial Highl ig hts . • The assets of the Village exceeded its liabilities at December 31, 20 II by $119.5 million (net assets). Net assets for governmental activities account for $68.7 million or 58% of the total and business-type activities account for $50 ~8 million. Of this amount, $26.4 million is unrestricted and may be used to meet the Village's ongoing obligations to residents and creditors. · • The Village 's net assets decreased by $3.6 million (or 3%) during the fiscal year ending December 31, 20 II. The governmental net . assets decreased by $1.3 million and the business-type activities net assets decreased by $2.3 million . • As of December 31, 20 II, the Village of Buffalo Grove 's General Fund reported combined ending fund balances of $18 .9 million, a decrease of $.7 million from the prior year. Of this amount, $9.9 million was unassigned . • The Village's total debt decreased by $1 million (or 12.78%). Overview of the Financ ia l Statements The MD&A is intended to serve as an introduction to the Vill age's b.asic financial statements. The Village of Bu ffa lo Grove 's basic financia l statements are comprised of ·three components: 1) government-wid e financial stateme nt s, 2) fund financ ial statements, and 3) notes to the fmancial statements. This report also contains other supp lementary information in addition to the basic financial statements. Government-wide Fi nancial Statements The government-wide financial statements (found on pages 17 to 20) are designed to provide readers w ith a broad overview of the Village's finances, in a manner similar to the corporate sector in that all governmental and business- type activities are consolidated into columns that add to total the Primary Government. The Statement of Net Assets presents information on all the Village's assets and liabilities, with the difference between the two reported as net assets. Changing of the net asset total over time can be one useful indicator in assessing the financia l position of the Village. This statement combines and consolidates governmental funds' current financial resources (short-term spendable sources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event causing the change occurs, regardless of the timing of related cash flows . Revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g. uncollected taxes). Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and inte rgovernmental revenues (governmental activities) from other functions that are intended to recover all or a s ig nifi cant portion of their costs through user fees and charges (business-type activities). 2 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2011 The governmental activities of the Viilage include public safety (police and fire), public works, streets and sidewalks, building and zoning, and general government. Property taxes, 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 operati ons, infrastructure replacement, and debt service expenses. Fund Financial Statements A fun d 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. All of the funds of the . Village can be divided into three categories: governmental funds , proprietary funds, and fiduciary funds. Governmental Funds · (see pages 22 to 25) are used to account for primarily the same functions reported as governmental activities in the government-wide financial statements. The focus, unlike the government-wide financial statement, is on the sources and use s of available resources (cash and cash equivalents), in order to provide a near, or short-term view of the Village's operations. This information is useful in the evaluation of short-term financing requirements. Because the focu s of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so; readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village of Buffalo Grove maintains seven individual governmental funds .. Information is presented separately in the governmental fund s balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, which is classified as a major fund. Data on the other six governmental funds are combined into a single , aggregated presentation. Individual fund data for each of these non major governmental funds is provided in the form of combining statements elsewhere in the report. Proprietary Funds (see pages 25 to 28, 83 to 89) are used to report the same functions presented as business-type a ctivities in the government-wide financial statements. The Village uses Proprietary Funds to account for its water and sewer utility, refuse service, and activities at the Buffalo Grove and Arboretum Golf Courses. Proprietary Funds provide the same type of information as the government-wide financial statements, only in more detail. The Proprietary Fund financial statements provide separate information .for the Water ·and Sewerage Fund and the Arboretum Golf Fund as they are considered to be major funds. The basic Proprietary Fund financial statements can be found on pages 25 to 28 of this report. Fiduciary Funds (see pages 29 and 30, 90 to 94) are used to account for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in the government-wide financial statement because the resources of those funds 'are not available to support the Village's own programs. The accounting used for Fiduciary Funds is much like that used for Proprietary Funds. The basic Fid uc iary Fund financial statements can be found on pages 29 and 30 of this report. Notes to the financial statement provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 31 to 65 of this report. 3 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2011 In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the budgetary comparison to actual for the General Fund, as well a s the Village 's progress in funding its obligation to provide pension and OPEB benefits to its employees. Required supplementary information can be found on pages 66 to 70 of this report. Government-wide Financial Analysis The assets of the Village of Buffalo Grove exceeded liabilities by $119.5 million as of December 31, 2011. The largest portion of the Village 's net assets reflects its investment in capital assets (76.3%). Those capital assets include land , buildings, streets, utility 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 in vestment 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 ($1.9 million or 1.6%) would represent resources that are subject to external restrictions on how they may be used. This amount is restricted for contractual construction obligations. The remaining balance of unrestricted net assets ($26.4 million or 22.1%) 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 goveminent as a whole. The Village's combined net assets decreased by $3.6 million as a result of governmental activities decreasing by $1.3 million and business-type activities decreasing by $2.3 million. Net assets of the Village's governmental activities were $68.7 million. The Village 's unrestricted net assets for governme ntal activities that are available for day-to-day fin ancial operations were $13.4 mill ion compared to $15.4 million at December 31, 20 10. The net assets of business-type activities were $50.8 million. The business-type activities unrestricted net assets decreased by $1.7 million from the previo us year. 4 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) Decem ber 31, 2011 Please refer to table below for condensed Statement ofNet Assets: Statement of Net Assets As of December 31,2011 and December 31,2010 (in millions) Governmental Business-Type Activities Activities 2011 2010 2011 2010 Current and Other Assets $ 38.9 39.5 13.9 15.5 Capital Assets 60.5 61.9 37.8 38.4 Tota l Assets 99.4 101.4 51.7 53 .9 Long-Term Liabilities 8.0 8.9 Other Liabil ities 22.7 22.1 1.0 0.8 Total Liabilities 30.7 31.0 1.0 0.8 Net Assets Invested in Capital Assets, Net of Debt 53.4 53.6 37.8 38.4 Restricted 1.9 1.0 Unrestricted 13.4 15.4 13.0 14.7 Total Net Assets $ 68.7 70.0 50.8 53.1 Normal Impacts Total 2011 2010 52.8 55.0 98.3 100.3 151.1 155.3 8.0 8.9 23.7 22.9 31.7 31.8 91.2 92 .0 1.9 1.0 26.4 30.1 119.5 123 .1 There are five basic (normal) transactions that will affect the comparability of the Statement of Net Assets summary presentation. Net Results of Activities-which will impact (increase/decrease) current assets and unrestricted net assets. Borrowing of Capital-which will increase current assets and long-term debt. Spending Borrowed Proceeds on New Capital-which will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. 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, 2011 Current Year Impacts At the end of the current fiscal year, the Village reported positive balances in all three categories of net asset, both for the government as a whole, as well as for its separate governmental and business-type activities. Within the governmental activities, the Village decreased its "Current and Other Assets" due to declining receivables for sales and utility taxes. Declines in "Current and Other Assets" for business-type activities are due to reduced cash from weaker than expected golf course play and water consumption. The Village has adopted a philosophy of funding capital improvements to a large extent on a pay-as-you-go basis, and retires debt obligations quickly, resulting in positive net asset calculations. Declines in "Capital Assets" are primarily a result of depreciation . 6 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2011 Changes in Net Assets. The Vi ll age 's total revenues and expenses for governmental and business-type activities are reflected in the following chart: Statem ent of C h anges in Net Assets For t h e Year s Ended December 3 1,2011 a nd 20 10 (in m illio n s) G overn ment a l Business-Type A c t ivities Activities Total 20 11 2010 20 11 2010 . 2011 2010 REVENUES Program Revenues Charges for Services $ 2.7 2.7 11.0 12.2 13.7 14.9 Grants and Contributions Operating 1.2 1.3 1.2 1.3 Capital General Revenues Property 14 .5 13.3 14.5 13.3 Sales and Use Taxes 7.0 7.3 7.0 7.3 Income Tax 3.7 4.2 3.7 4.2 Telecommunications Tax 2 .1 2 .2 2 .1 2 .2 Utility Tax 2 .6 2.4 2.6 2.4 Property Transfer Tax 0.6 0.5 0.6 0.5 Other 2.7 3.0 0.1 2.7 3.1 Total Revenues 37.1 36.9 11.0 12.3 48.1 49.2 EXPENSES Governmental Activities General Government 5 .0 4 .8 5 .0 4.8 Public Safety 22.6 22.3 22.6 22.3 Public Works 11.1 11.1 11.1 11.1 Interest 0.2 0 .2 0 .2 0.2 Business-type Activities Water and Sewer 8.8 9 .9 8.8 9.9 Refuse Services 0.9 0.9 0.9 0.9 Golf 3.1 3.0 3 .1 3.0 Total Expenses 38 .9 38.4 12.8 13.8 51.7 52.2 Deficiency before Transfers (1.8) (1.5) (1.8) (1.5) (3.6) (3.0) Transfer In (Out) 0 .5 0.2 {0.5} {0.22 Change in Net Assets (1.3) (1 .3) (2.3) (1.7) (3.6) (3.0) Net Assets, Beginning (as Restated) 70 .0 71.3 53.1 54.8 123.1 126.1 Net Assets, Ending $ 68.7 70.0 50.8 53.1 119.5 123.1 7 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2011 No rmal Impacts Revenues Economic Condition -which can reflect a declining, stable or growing economic environment and has a substantial impact on property, sales, income, utility tax revenues as well as public spending habits for building permits, elective user fees and volumes of consumption Increase/Decrease in the Village Approved Rates -while certain tax rates are set by statute, the Village has significant authority to impose and periodically increase/decrease rates (water, building and licensing fees, ambulance fee, etc .) Changing Patterns in Intergovernmental and Grant Revenue-(both recurring and non-recurring) -certain recurring revenue (state shared revenues) may experience significant changes periodically while non-recurring (one time) grants are less predictable and often distorting in their impact on year-to-year comparisons. Market Impact 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. Expenses Changes in Authorized Personnel -changes in service demand may cause the Village 'to increase/decrease authorized staffing. Salary Increase (general wage adjustments and merit) -compensation adjustments to ensure the Village is able to attract and retain high level employees. Inflation -while overall inflation appears to be reasonably modest, the Village is a major consumer of certain commodities such as supplies, fuels, and parts. Some functions may experience unusual commodity-specific increases (e.g. fuel, road salt). Current Year Impacts Government Activities: Governmental activities decreased the Village 's net assets by $1.3 million to $68.7 million. Significant elements contributing to this net change are as follows: Revenues: Revenue s for the Village's governmental activities for the year ended December 31, 2011 were $37.1 million, an increase of $.2 million or .5%. Property taxes continue to be the Village's largest source of revenue (39.1%) at $14.5 million. Included within the property tax revenues are the pension levies for the Police and Firefighter Pension Funds. The pension levies account for 11.4% of the property tax levy. Other taxes including sales tax, utility tax, te lecommun.ications tax, prepared food and beverage tax, hotel tax, and real estate transfer tax total $15.0 million or 40.4% of total governmental activities revenue. Intergovernmental revenues, including state income tax, account for 10%. There was an adjustment to state sales tax due to a sales tax nexus and remitting error that was repaid in 2011. That adjustment was approximately $.5 million. 8 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DI SCUSSION AND ANALYS IS (CONT.) December 3 1, 2011 Village of Buffalo Grove 2011 Revenue by Source Governmental Activities 7.3% 3.2% 5.6% 18 .9% • Property Taxes • Sales and Use Taxes •Income Tax • Telecommunications Tax • Utility Taxes • Property Transfer Tax • Grants and Contributions • Charges for Service • Other Taxes Property taxes increased by $1.2 million. I ncreases to the Police and Firefighter Pension account for 31.8% of that increase. The remainder of the increase is due to combination of budgeted growth in the levy and additional taxes received due to a levy under exten sion in the previous year's levy. Sales tax declined by $.3 million due entirely to the sales tax repayment noted previously. Absent the repayment, there was a slight upturn in sales tax receipts. Utility taxes were up $.2 million as a result of a full twelve months of accounting for this revenue that was implemented in 20 I 0. The economy continues to put a strain on income taxes (down $.5 million). Ex penses: The cost of all governmental activities this year was $38.9 million, an increase of 1.5% from the previous year ($38.4 million). The increase is due, in large part, to inflationary costs applied to all operating costs. Village of Buffalo Grove 2011 Expenses by Source Governmental Activities 0.6% 12.8% • General Government • Public Safety • Public Works • Interest 58.1% 9 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AN D ANALYSIS (CONT.) December 31,2011 The Statement of Activities on pages 19 and 20 shows that $2.7 million was fmanced by those who use the services, $1.2 million was financed by operating and capital grants and contributions, with the Village 's general revenues financing $33.2 million. Business-type Activities: Business-type activities net assets decreased by $2.3 million. Significant decreases are noted below: Revenue: Water sales declined by $1.2 million from the previous year. A lmost a ll of the decrease was due to a change in billing methodology for Lake County Sanitary Sewer Fees. The Village bills the service on behalf of Lake County. There was a corresponding decline in expenses as the fees collected are pass-through revenues. The amount of water consumed in 2011 averaged about 6,100 gallons per month per residential household compared to last year's average of 5,975 gallons. The two golf courses generated $3.21 million versus $3.12 million in 2010. The following graph shows a comparison of revenues and expense for each business-type activity (less depreciation). 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4 ,000,000 3,000,000 2,000,000 1,000,000 Expenses: Village of Buffalo Grove 2011 Business-Type Activities Revenues and Expenses Water Fund Buffalo Grove Golf Club Arboretum Golf Club Refu se Fund 11 Revenue a Expense Expenses from all business-type activities decreased by $1.1 million or 8.0%. The amount paid to Lake County for sanitary sewer ser vice fees declined by $1.1 million. Expenses at the golf courses increased by $0.1 million in 2011. Financial Analysis of the Village's Funds As noted earlier, the Village utilizes fund accounting to ensure and demonstrate compliance with fmance related legal requirements. Governmental Funds The focus of the Village 's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. The Village's governmental funds for the year ended December 31 , 2011 reflect a combined fund balance of $20.7 million in its balance sheet on page 21 . This represents a $.9 million dollar decrease over the balance posted last year. Ofthe total fund balance of$20.7 million, $9.6 million is unassigned indicating availability. The 2011 10 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CO NT.) December 31, 2011 unassigned fund balance increased by $.3 million. The increase in unassigned fund balance is due to a Voluntary Separation Incentive (VSI) program offered to employees of retirement age. This program resulted in the retirement of over 20 employees. Cost savings were generated by a combination of hiring deferrals, rehiring at a lower rate of pay, or outright elimination of the position. The remainder of the fund is c lassified as nonspendable, restricted, committed, and assigned. Nonspendable fund balance ($1.0 million) represents amounts set aside for inventory and prepaid insurance. Restricted fund balance ($1.9 million) is allocated to debt service, capital projects, and pensions. Comm itted fund balance ($7.9 million) is to be used for capital replacement ($7.4 million) and post-employment benefits ($.6 million). The General Fund is the Village 's main operating fund and accounts for core municipal services including public safety (police and frre), public works, building and zoning, and general administration. As such, it is useful to review the liquidity of the fund by comparing the unassigned fund balance against the operating General Fund budget. As of December 31 , 2011 , the unassigned fund balance represents 33.7% of the operating budget. The Fund Balance of the General Fund decreased by $.7 million from December 31 ,2010. Savings generated by the VSI program were offset by increased capital spending for technology (phone system and financial software) in 2011. Village of Buffalo Grove 2011 General Fund Tax Revenue 16,000,000 ...---------------------- 14,000,000 ~&;;;;;;;111---------------------- 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 8 2011 •2010 The General Fund 's revenues decreased by $33 ,800 in 2011. Taxes that declined year over year include sales and use tax, income tax and telecommunications tax. Both income tax and telecommunications taxes still are impacted by the economic downturn. Income tax is impacted by unemployment and telecommunications tax is stagnant due to customers cutting costs and reducing phone service lines. Sales and use tax would have posted a gain if not for the sales tax repayments as a result of the nexus error. Property taxes increased by 5.9% because of increases in the general corporate portion and pension requirements. Real estate transfer taxes were up $83 ,861 {15.4%) as more housing inventory is turning over. Interest incomes continues to decline due to lower invested balances and as investments continue to mature and are reinvested at much lower rates. The historically low Federal Funds Rate has a significant impact on much of the General Fund's investment portfolio. II V IL LAGE O F BUFFA LO G ROVE, ILLIN OIS MANAGEMENT 'S DISCUSSION AND ANALYSI S (CONT.) Dece mber 3 1,2011 25,000,000 20,000,000 15,000,000 5,000,000 0 Vlllqe of Buffalo Grove 2011 Governmental Expenses Gene r al Government Public Safety Public Works General Fund expenditures increased by $.6 milJjon or 1.8%. Interest 11 2 011 11 2 010 The deficiency of revenues over expenditures was $86,706. Adding in the net other financing uses, the net change to fund balance resulted in a decrease of $.6 million. The deficit is due to anticipated and budgeted contributions of $.4 million to pay-as-you-go financing of capital projects in fisca l year 20 II , $.5 million for transfers to the golf courses (unanticipated), and $1 million for spending on capital equipment. Special Revenue Funds have a combined fund balance of $1.8 million as of December 31, 20 II, down $.3 million from December 31 , 20 I 0. The Retiree Health Savings Fund was reclassified out of Special Revenue and is included within the General Fund and identified as committed fund balance. The largest increase was in the Motor Fuel Tax Fund. The Fund accounts for the state-shared moto r fue l 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 were $1.1 million. The cost of the 2011 street mai ntenance program was $1.3 million. The Village contributed an additional $.6 million to the fund. The scope of each year's identified maintenance, as determined through pavement analys is 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 $1.6 million . The next largest increase ($.1 mill ion) in fund balance was in the Illinois Municipal Retirement Fund. The increase was due primarily to a reduction in pensionable earnings as several employees retired during the year through the VSI program. The Debt Service Fund has a fund balance of $12,543 as of the end of FY20 I I , an increase of $15,073 from the previous year. Total debt outstanding is $7.2 million and consists of general obligation bonds. The Village 's Capital Improvement Funds (Facilities and Streets) have a total fund balance deficit of$36,125, which is a reduction of$1 million from December 31,2010. Significant projects either completed or in progress were the Village-wide Drainage Improvement Project, engineeri ng study on the Weiland Road Corridor project, Dundee Road Streetscape Improvement, fmancia l software and phone system upgrade. 12 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSI S (CONT .) December 31, 2011 Pro prieta r y Funds The Village of Buffalo Grove 's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The Village reports the Water and Sewer Fund as a major proprietary fund. The Water and Sewer Fund accounts for all of the operations of the municipal water system . Water is purchased whol esale from the City of Evanston through the Northwest Water Commission of which the Village is one of four members . Sanitary sewer service is provided by the Lake County Public Works Department. for those property owners in Lake County. The Village acts as a " billing partner to reduce administrative costs. The Metropolitan Water Reclamat ion District ofGreater Chicago handl es all the sanitary sewer treatment for Cook County res idents and recovers its expenses through a property tax levy. The water and sewer utility experienced a net loss before contributions and transfers of $.9 m illion for FY20 I I as compared to a net loss of $.8 million in the prior year. In 2011 , $1 million was invested in capital improvements to improve a water main along Arlington Heights Road and the construction of a deep well to a redundant capacity backup. Operating income decreased $1.3 million due in large part to the change in billing methodology for Lake County sanitary sewer fees noted earlier and a $.1 million reduction in service connection fees. Purchased water expense and sanitary sewer fees collected on behalf of Lake County Publ ic Works for FY2011 accounted for 60.3% of the total operating expense of the fund. Purchased water expense increased by $80,544 from the prior year. Non-operating revenue (expense) decreased $36,77 1 due to reduced interest income. Unrestricted net assets of the Water and Sewer Fund at the end of the current fiscal year were $12.8 million. Of this amount, $7.2 mill ion is the Village's equity interest in the Northwest Water Comm ission and $5.6 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 $36,966. Total reven ues were $.2 million more than the previous year due to an 8.7% in crease in play. Although there was a rebound in daily golf rounds in 20 11 , economic and market factors continue to weigh heavily upon course revenues. The Village of Buffalo Grove owns and operates two municipal golf courses. Golf play levels continue to be stagnant g iven both the economy and the state of the industry. A tota l of 56,9 I 8 paid rounds were played between the two courses. General F und Budgetary Highlights The budget is formally pre se nted to the Village Board in late November or early December. As the Village operates under the Appropriations Act, a publi c hearing is conducted after the budget is adopted for public comment on the Appropriations O rdinance. The Ordinance sets the legal spending ceiling for each fund. The budget is the day-to- day management tool to ensure fiscal accountability. 13 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION 'AND ANALYSIS (CONT.) December 31, 2011 General Fund Budgetary Highlights For the Year Ended December 31,2011 (in thousands) Budget REVENUES AND TRANSFERS . Taxes $ 28,979 Fines and Fees 1,515 Licenses and Permits · 274 Other Revenues 1,888 Transfers In 705 Total Revenues and Transfers 33,361 EXPENDITURES AND TRANSFERS Expenditures 32,323 Transfers Out I 037 Total Expenditures and Transfers 33 360 Change in Fund Balance $ Ca pital Assets Actual 28,846 1,404 280 2,322 705 33,557 32,886 1 338 34 224 (667) At the end of December 31, 2011, the Village had a combined total of capital assets of $98,309,472 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$1.9 million. Land Construction in Progress La.nd Improvements Buildings Equipment and Vehicles Streets and Storm Sewers · Water and Sewer Infrastructure Capital Assets at Year En d. Net of Depreciation As of December 31,2011 and 2010 (in millions) Governmental Business-Type Activities Activities 2011 2010 2011 2010 $ 35.96 35 .96 6.20 6.20 0.38 2.51 1.24 0.30 3.02 0.58 3.75 4.27 4.22 4.70 4.53 4.48 12.86 14.00 26.15 27.20 $ 60.50 61.80 37.81 38.40 14 Totill 2011 2010 42.16 1.62 3.02 7.97 4.53 12.86 26.15 42.16 · 2.81 . 0.58 8.97 4.48 14.00 27.20 98.31 100 .20 VILLAGE OF BUFFALO GROVE, ILLINOIS . . MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2011 Major additions to capital assets during the year included the following (in millions): Governmental Activities Construction in Progress Vehicles and Equipment $ 1.3 0.4 The Governmental Activities net capital assets decreased from last year by $1.3 million (2.2%). For the Business- type Activities, the net capital assets decreased by $.6 million or 1.6%. The most significant capital activity was the completion of the Village-wide drainage improvement project, rehabilitation of the Cambridge on the Lake lift station, Weiland Road engineering study, Dundee Road Streetscape improvement, construction of a deep well at reservoir #7, and the scheduled vehicle replacements made during the year as part of a systematic funding and replacement program for all Village-owned vehicles. Detailed information on the Village 's capital assets is included in Note 5 on pages 41 and 42. Long-Term Debt At year end, the Village had total bonded debt outstanding of$7.2 million as shown in the next table: General Obligation Bonds General Obligation Bonds As of December 31,2011 and 2010 (in millions) Governmental Activities 2011 2010 $ 7.2 8.3 Business-Type Activities 2011 2010 Total 2011 2010 7.2 8.3 The Village maintains assigned "AAA" ratings on its general obligation bonds 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 $174.77 and represents .43% of the percentage of equalized assessed valuation of the Village. The Village, under its home rule authority, does not have a legal debt limit. ·Detailed information on the Village's long-term debt can be found in Note 6 on pages 43 and 44. Economic Factors and Next Year's Budgets and Rates The Village did enter 2012 with a balanced operating budget. The budget for the fiscal year beginning January 1, 2012 is $58,321 ,517, a 14.7% decrease from the previous year. The operating budget totals $33,434,649, resulting in a 0.2% decrease over the previous year. Total capital spending during the year is estimated to be $6.2 million. As the economy stabilizes and revenues begin to improve, emphasis will remain on developing in novative ways to del iver services and reduce costs. 15 VI LLAGE OF BUFFALO GROVE, ILLINOIS MANAGEM EN T 'S DISCUSSION AND ANAL YSI S (CO NT .) Dece mbe r 3 1, 20 11 Property taxes remain th e Village's most stable revenue although the total assessed va lue of all taxable property is expected to decline about 6% for the 2011 tax levy (extended and collected in 2012). A zero growth tax levy was adopted for the 2012 budget, recognizing the . economic strain on property ' owners within the V illage. Other tax revenue s, including municipal and home-rule sales tax are expected to increase due to inflation. Much of the sales taxes are generated through restaurants, grocery stores, and building material sales. Income taxes are expected to declin e due to the 20 l 0 census and the loss of I ,699 residents. Real estate transfer tax revenues are· expected to increase over the 2 0 I I budgeted revenues but still remain historically low as the bottom of the housing trough appears to be in s ight. A twenty year proforma was completed on the Water Fund· in ·FY2012 ,' ~md a subsequent water and sewer rate recommendation will be made in 2012 with. a 2013 effective date. A series of water and sewer rate increases will better match operating expenses and infrastructure reserve funding to system revenues. Budgeted expenditures include general wage adjustment for non-represented employees and contractual salary adjustments which are part of labor agreements. Health insurance increases were minimized through the change from being self-in sured to moving into a pool insurance group as part of the Intergovernmental Professional Benefits Cooperative (I PB C). All other expenditures will be generally un changed. There is no additional staffing recomm ended for FY20 12 . . C O NT ACTING T HE 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 thi s re port or requests fo r additional financia l information should be directed to Scott Anderson, Director of Finance and General Services, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089. 16 BASIC FINANCIAL STATEMENTS ·VILLAGE OF BUFFAL~ GROVE, ILLINOIS Statement of Net Assets December 3 I, 20 II (See Following Page) .- V ILLAGE O F BUFFA LO GROVE, ILLINOIS Statement of Net Assets December 3 1 , 20 11 Governmental Business-Type Activities Activities Total Assets Current Assets Cash and Equivalents $ 8,319,312 2,7 18,761 11 ,038,073 Investments 10,040,941 2,270,254 12,311,195 Receivables Property Taxes 14,20 1,796 14,201,796 Acco unts -Water 1,260,409 1,260,409. Municipal Sales Tax 1,846,187 1,846,187 Ill inois Income Tax 1,788,322 1,788,322 Motor Fuel Tax 87,281 87,281 Telecomm unications Tax 509,554 509,554 Food and Beverage Tax 71,222 7 1,222 Utility Tax 374,812 374,812 Interest 24,798 3,177 27,975 Other 32,328 86,350 118,678 Inventory 87 519 29,382 116,90 1 Total Current Assets 37,384!072 6!368!333 43!752,405 Noncurrent Assets Prepaid Items I ,065,99 5 335,336 1,401,331 Investment in Joint Venture 7,244,845 7,244,845 Net Pension Asset 519,643 5 19,643 Capital Assets, Net of Accumulated Depreciation Land 35,963,844 6,198,514 42,162,358 Construction in Process 379,588 1,237,320 1,616,908 Buildings 3,746,339 4,225,325 7,971 ,664 Land Improvements 3,018,356 3,018,356 Equipment and Vehicles 4,532,563 4 ,532,563 Streets and Storm Sewers 12,861,636 12,86 1,636 Water and Sewer System Infrastructure 26,145,987 26,145,987 Bond Issuance Costs, Net of Accumulated Amortization 106 220 106 220 Total Noncurrent Assets 62,194,184 45,387,327 107!58 1,511 Total Assets 991578 1256 51,755,660 151,333 1916 See accompanying Notes to the Financial Statements. (Cont.) 17 V ILLAGE O F BUFFALO GROVE, ILLINOIS Statement of Net Assets (Cont.) · December 31, 20 11 Governmental Business-Type Activities Activities · · Total Liabi lities Current Liabilities Accounts Payable and Accrued Liabilities 2,247,647 9 15,753 3,163 ,400 Accumulated Unpaid Sick Leave 180,240 180,240 Claims Payable 398,094 398,094 Deposits Payable 783,971 43,637 827,608 Unearned Property Taxes 14,201,796 14,201 ,796 Unearned Taxes -Other 862,279 862,279 Other Liabilities -Pension Funds 3,288,918 3,288,918 General Obligation Bonds Payable 920,000 920 000 Total Current Liabilities 22,882,945 9592390 23 ,842,335 Noncurrent Liabilities Net Other Post-Employment Obligation 320,966 320,966 Accumulated Unpaid Sick Leave 1,337,660 1,337,660 General Obligation Bonds Payable 6 326,399 6,326,399 Total Noncurrent Liabilities 7,985,025 7 985 025 Total Liabilities 30,867,970 959,390 3 1 827,360 Net Assets Invested in Capital Assets, Net of Related Debt 53,362,147 37,807,146 91 ,169,293 Restricted for Road Construction 1,561 ,323 1,561 ,323 Restricted for Employee Pension Benefits 146,316 146 ,316 Restricted for Debt Service 12,543 12 ,543 Restricted for Capital Projects 198 ,081 198 ,081 Unrestricted 13 2429,876 12,989 ,124 26 24192000 Total N et Assets $ 68 ,710,286 5027962270 1 19,506,556 See accompanying Notes to the Financial Statements. 18 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Activities Year Ended December 31, 2011 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 $ 5,010 ,274 22,657,643 11 ,106,433 248 539 39,022,889 8,753 ,149 935,365 3057912 .12 746 426. $ 51 ,769,315 See accompanying Notes to the Financial Statements. 19 Program Revenues Charges for Services Operating Grants and Contributions "1,240,547 1,404,308 86,421 2 731 276 7,782,000 1,036,872 ·2,175,418 10,994,290 13,725 ;566 169,668 1,060,719 1 230 387 1,230,387 General Revenue& and Transfers Taxes Property Sales and Home Rule Income and Use Telecommunications Utility Property Transfer Other Investment Income Miscellaneous Gain on Sale of Assets Transfers In (Out) Total General Revenues and Transfers _Change "in Net Assets Net Assets Beginning (as restated) ·Ending Capital Grants Contributions Net ~Ex2ense~2 Revenue and Changes in Net Assets Governmental Business-Type Activities Activities Total (3 ,769,727) (3,769,727) (2 1 ,083,667) (21 ,083,667) (9,959,293) (9,959,293) {248!539~ {248,539l {35 206 1 2 226~ {35!06 1 ,226l (97 1 '149) (971 '149) 101 ,507 101,507 ~882!494} ~882!494~ ~1!752,136) ~1 ,752!1 36~ (35,061 ,226) (1 ,752, 136) (36,813,362) 14 ,458,248 14,458,248 6 ,984 ,134 6,984,134 3,7 14 ,864 3 ,714,864 2,134,462 2,134,462 2 ,567,09 1 . 2,567,09 1 629,376 629,376 1,044,164 1,044,164 133,059 4 1,100 174,159 1,442,617 4,999 1,447,616 52,538 52,538 553 2000 (553!000) 33,713!553 (506,901) 33!206,652 (1,347,673) (2,259,037) (3,606, 7 1 0) 70 20572959 53!055,307 123 2113,266 68,710,286 50,796,270 119,506!556 20 VILLAGE OF BUFFALO GROVE, ILLINOIS Balance Sheet -Governmental Fun ds December 31 2011 Nonmajor Total General Governmental Governmental Fund Funds Funds Assets Cash and Equivalents $ 6,339,333 1,807,416 8,146,749 Investment 10,040,941 10,040,94 1 Receivables Property Taxes 11,693,695 2,508,101 14,20 1,796 Municipal Sales Tax 1,846,187 1,846,187 Illinois Income Tax 1,788,322 1,788,322 Motor Fuel Tax 87,281 87,281 Telecommunications Tax 509,554 509,554 Food and Beverage Tax 71,222 71,222 Utility Tax 374,812 374,812 Interest 24,798 24,798 Other 32,328 32,328 Due from Other Funds 857,043 857,043 Inventory 87,519 87,519 Prepaid Items 944,417 944,417 Total Assets $ 33,753,128 5,2592841 39,012,969 Liabilities Accounts Payable and Accrued Liabilities $ 1,507,415 574,359 2 ,081 ,774 Deposits Payable 783,971 783,971 Deferred Property Taxes 11,693,695 2,508,101 14,201 ,796 Deferred Taxes -Other 862,279 862,279 Due to Other Funds 53 593 347,208 400,801 Total Liabilities 14 ,900,953 3 24292668 182330,621 Fund Balances Nonspendable Inventory 87,519 87,519 Prepaid Items 944,417 944,417 Restricted Debt Service 12,543 12,543 Capital Projects 198,081 198 ,0 81 Road Construction 1,561,323 1,561 ,323 Employee Pension Benefits 146,316 146 ,316 Committed Employee Benefits 585,314 585,314 Capital Replacement 7,363,030 7,363,030 Assigned Parking Lot Operations 146,116 146,116 Unassigned Special Revenue Funds (234,206) (234,206) General Fund 9,871,895 9,871,895 Total Fund Balances 18,8522175 1,830,173 2026822348 Total Liabilities and Fund Balances $ 33,753,128 5 22592841 39,012,969 - See accompanying Notes to the Financial Statements. 21 VILLAGE OF BUFFALO GROVE, ILLINOIS Reconciliation ofthe Balance Sheet of Governmental Funds to the Statement of Net Assets December 31, 20 II Total Fund Balances -Governmental Funds Amounts reported for go.vernmental 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. Some assets (liabilities) reported in the . Statement of Net Assets do not provide or require the use of current financial resources and, therefore, are not reported as assets (liabilities) in the governmental funds. These assets (liabilities) consist of:. Net Pension Asset Net Other Post-Employment Obligation Other Liabilities to Pension Funds General Obligation Bonds Payable Accumulated Unpaid Sick Leave Deferred charges are amortized on the Statement of Activities, but are expensed in the year in which they were incurred in the governmental funds. Net Assets of Governmental Activities See accompanying Notes to the Financial Statements. 22 $ 20,682,348 60,502,326 (726,068) 519,643 (320,966) (3,288,918) (7,246,399) (I ,517,900) 106,220 $ 68,710,286 VILLAGE OF BUFF A.LO GROVE, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances- Governmental Funds Year Ended December 31,2011 Nonmajor Total General Governmental Governmental Fund Funds Funds Revenues Charges for Services $ 1,057,275 159,222 1,2l6,497 Licenses and Permits 280,139 280,139 1 ntergovemmental 1,060,719 1,060,719 Fines and Fees 1,404,308 1,404,308 Property Taxes 11,771,878 2,686,370 14,45 8,248 Other Taxes 17,074,091 17,074,091 Investment Income 132,710 486 133,196 Miscellaneous 1,079 ,191 363,426 1,442,6 17 Total Revenues 32,799,592 4,270,223 37,069,815 Expenditures Current General Government 4,883,254. 626,179 5,509,433 Public Safety 21,627,997 380,355 22,008,351 Public Works 6,375,047 1,881,032 8,256,079 Capital Outlay 1,510,924 1,510,924 Debt Service Principal 1,055,000 1,055,000 Interest and Fiscal Charges 248 539 248,539 Total Expenditures 32,886!298 5,702,028 38,588,326 Excess (Deficiency) of Revenues over Expenditures {86,706} { 11431 1805} {I 1518 1511} Other Financing Sources (Uses) Proceeds from Sale of Assets 52,538 52,538 Transfers In 705,000 1,186,354 1,891 ,354 Transfers Out {1,338,354} {I ,338,354} Total Other Financing Sources (Uses) {580,816) 1 z 1861354 605 1538 Net Change in Fund Balances (667,522) (245,451) (912,973) Fund Balances Beginning (as Restated) 19,519!697 2,075,624 21,595,321 Ending $ 18,852, I 75 1,830,173 20,682,348 See accompanying Notes to the Financial Statements. 23 V ILLAGE OF BUFFALO GROVE, ILLINOIS Reconciliation ofthe Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31 2011 Net Change in Fund Balances -Total Governmental Funds Amounts reported for governm ental 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 ($1,358,545 current additions less $2,690,334 depreciation). Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. ·· Premiums and other items from bond issuance are reported currentl y in the fund statements, but amortized over the bond life in the Statement of Activities. Premium on Issuance of Debt, Net of Current Amortization Bond Tssuan.ce Costs, Net of Current Amortization Loss on Bond Refunding, Net of Current Amortization 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: Increase in Pension Asset Increase in Net Other Post-Employment Obligation Decrease in Accumulated Unpaid Sick Leave · Change in Net Assets of Governmental Activities See accompanying Notes to the Financial Statements. 24 $ (9 12,973) (1,331,789) 1,055,000 18,357 (11 ,359) {10,749) (296,166) 128,995 (58,638) 71,649 $ (1,347,673) V ILLAGE OF BUFFALO GROVE, I LLINOIS Statement of Net Assets-Proprietary Funds December 3 I , 20 I I Governmental Business-T~Ee Activities-Ente!:_Erise Funds Activities Waterworks Arboretum Nonmajor Internal and Sewerage Gol f Course Enterprise Service Fund Fund Funds Total Fund Assets Current Assets Cash and Equivalents $ 2,522,145 1,335 195,281 2,718,761 172,563 Investments 2,270,254 2,270,254 Receivables Accounts-Water 1,260,409 1,260,409 Interest 3,177 3,177 Other 86,350 86,350 Inventory 7,391 21,991 29,382 Total Current Assets 6 ,055,985 8,726 303,622 6,368,333 172!563 Noncurrent Assets Prepaid Items 335,336 335,336 121 ,578 Investments in Joint Venture 7,244,845 7,244,845 Capital Assets, Net of Accumulated Depreciation Land 5,219,738 978,776 6,198,514 Construction in Progress 1,237,320 1,237,320 Buildings 3,944,005 281,320 4,225,325 Water and Sewer System 26,145 987 26 145 987 Total Noncurrent Assets 34,963,488 9,163!743 1,260,096 452387,327 121,578 Total Assets 41,019,473 9,172!469 1!5632718 51,755,660 294!141 Liabilities Current Liabilities Accounts Payable and Accrued Liabilities 824,721 45,692 45,340 915,7?3 165,873 C laims Payable 398,094 Deposits Payabl e 43,637 43 ,637 Due to Other Funds 456 242 Total Liabilities 8682358 45,692 45,340 959,390 12020!209 Net Assets Invested in Capital Assets 27,383,307 9,163,743 1,260,096 37,807,146 Unrestricted 12!767,808 {36,966} 2582282 12!989,124 {726,0682 Total Net Assets $ 40,151,1 15 9,1262777 1,518,378 50,796,270 {726,0682 See accompanying Notes to the Financial Statements. 25 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Revenues, Expenses, and Changes in Net Assets -Proprietary Funds Year Ended December 3 I, 20 II Governmental Business-Type 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 $ 7,743 ,700 7,743,700 Daily Greens Fees and Memberships 797,638 732,595 1,530,233 Merchandise Sales 50,456 71,536 121 ,992 Connection and Recapture Fees 38,300 38,300 Cart, Club and Other Rentals 231,516 205,769 437,285 Driving Range Fees 51,393 51,393 SWANCC User Fees ·1,036,872 1,036,872 Health Premiums 4,306,419 Miscellaneous 17,296 17 219 34,515 Total Operating Revenues 7!782,000 1,096,906 2!115!384 10,994!290 4!306,419 Operating Expenses Water Operations 1,609,772 1,609,772 Sewer Operations 4,367,840 4,367,840 Water Purchases 1,778,513 1,778 ,513 Golf Operations 1,224,886 1,206,865 2,431,751 Cost of Sales -Pro Shop 51,476 53,245 104,72 1 Refuse Operations 935,365 935,365 Health Services 4,602,448 Gain from Joint Venture (40,333) (40,333) Depreciation 1,037,357 488 656 32,784 1 558 797 Total Operating Expenses 8,753,149 1,765,018 2!228 ,259 12 ,746,426 4,602,448 Operating Loss {971,1492 {668,1122 ~112!8752 {1,752,1362 ~296,0292 Nonoperating Revenues (Expense) Investment Income · 41 ,571 (471) 41,100 (137) Other 4,999 4 999 46,570 {4712 46!099 {1372 Loss before Transfers {924,5792 ~668!1122 {113,346} {1,706!037} {296! 1662 Transfers In 168,000 184,000 352,000 Transfers Out {905,0002 ~905,000} Transfers, Net ~905,0002 168!000 184,000 {553!0002 Change in Net Assets (1,829,579) (500, 112) 70,654 (2,259,037) (296,166) Net Assets Beginning 41!980,694 9,6262889 1!447,724 53,055!307 {42929022 Ending $ 402151,115 9,126,777 1!5182378 50,796,270 {726,068} See accompanying Notes to the Financial Statements. 26 VILLAGE OF BUFFALO GROVE, I LLINOIS Statement of Cash Flows -Proprietary Funds Year Ended December 31 2011 Governmental Bu siness-T~12e Activities-Ente!Erise Funds Activities Waterworks Arboretum Non major Internal and Sewerage Golf Course En terprise Service Fund Fund Funds Total Fund Cash Flows from Operating Activities Cash Received from Res idents for Water/Sewer Services $ 7,97 1,897 7,971,897 Cash Received from Residents for Connections 38,300 38,300 Cash Received for Golf Activities 1,096,906 1,078,5 12 2,175,418 Cash Received for Refuse Services 1,036,697 1,036,697 Cash Received from Other Funds for Services 4,306,419 Payments to Employees ( 1 ,3 42,070) (743 ,0 17) (754,766) (2,839,853) Payments to Suppliers {6 22642483} {519,799} {1,441 '126} {8,2252408} { 42563 ,490} 403,644 {165,910} {802683} 1572051 {257,071} Cash Flows from Noncapital Financing Activities Change in Due to/from Other Funds, Net 1,374 (1,605) 231 182 ,012 Transfers In 168,000 184,000 352,000 Transfers Out {905,000} {905,000} {903,626) I66,395 184,231 {553,000) 1822012 Cash Flows from Capital and Related Financing Activ ities Capital Assets Purchased {954,977} {9542977} Cash Flows from Investing Activities Interest Received 54,882 (471) 54,411 (137) Sale of Investments 115 000 11 5 000 169,882 {47Q 169,411 {137} Net Increase (Decrease) in Cash and Equivalents ( 1 ,285 ,077) 485 103,077 (1,181,515) (75, 196) Cash and Equivalents Beginning 3!807,222 850 922204 3,900,276 247!759 Ending $ 225222145 1,335 1952281 2!718,761 17225 63 See accompanying Notes to the Financial Statements. (Cont.) 27 VILLAGE O F BU FFALO GROVE, ILLINO IS Statement of Cash Flows-Proprietary Funds (Cont.) Year Ended December 3 1 , 20 1 I Business-Type Activities-Enterprise Funds Waterworks Arboretum Nonmajor and Sewerage Golf Course Enterprise 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 Depreciation Investment in Joint Venture Changes in Assets and Liabilities Receivables Inventory Prepaids Accounts Payable and Accrued Liabilities Deposits Payable Total Adjustments Net Cash Provided (Used) by Operating Activities Summary of Noncash Investing Activities Net Depreciation of Investments $ $ $ See accompanying Notes to the Financial Statements. Fund Fund ·Funds Total (971,149) (668, 112) (112,875) (1,752,136) 1,037,357 488,656 32,784 1,558 ,797 (40,333) (40,333) 228,197 (175) 228,022 6,754 1,422 8,176 31,039 31,039 123,322 6,792 (1,839) 128,275. (4,789) (4,789) 1,374,793 '502,202 32,192 1,909,187 403,644 (165 ,910) (80,683) 157,051 7,856 . 7,856 28 Governmental Activities Internal Service Fund (296,029) (121,578) 160,536 38,958 (257,071) VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Fiduciary Net Assets December 31, 2011 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. 29 Pension Trust Funds $ 8,758 ,840 9,091,863 24,787,951 34,054,117 3,288,918 85,784 80,067,473 10,009 10,009 $ 80 057,464 Agency Fund 585,387 585 ,387 585,387 585,387 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Changes in Fiduciary Net Assets Year Ended December 31 20 I I Additi ons Contributions Employer Participants In vest men t In come Net Appreciation in Fair Value of Investments Interest Income Less: In vestment Expense Total Additi ons Deductions Administration Pension Benefits and Refunds Total Deductions Chan ge in Net Assets Net Assets Beginning Ending See accompanyin g Notes to the Financial Statements. .30 $ 4,235,591 1,317,654 5,553,245 2,092 ,277 543,496 (205,525) 2,430,248 7,983,493 63,820 2,788,247 2,852,067 5,131,426 74,926,038 $ 80,057,464 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2011 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 t9 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: (I) Appointment of a voting majority of the component unit's board and either (a) the ability to impose will by the primary government, or (b) the possibility that the component unit will provide a financial benefit to, or impose a financial burden on, the primary government; 9r (2) Fiscal dependency on the primary government. The accompanying financial statements present the Village of Buffalo Grove. The Village has determined that no other entity meets the above criteria and, therefore, no other entity has been included as a component unit in the Village's 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 Vi.llage'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. 31 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 20 11 I. 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 iden t ifiable with a specific function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs (including fines and fees), and (b) grants and contributions that are restricted to meeting the operational requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fiduciary funds are excluded from the government-wide fmancial statements . Fund Financial Statements: Separate financial statements are provided for governmental funds , proprietary funds and fiduciary (agency) funds, even though the latter are excluded from the government-.wide financial statements. The fund financial statements provide information about the Village's funds. The emphasis of fund fmancial statements is on major governmental funds, each disp layed in a separate column. The VilJage has the following major governmental fund -General Fund. All remaining governmental funds are aggregated and reported as nonmajor governmental funds . The Village has the following major proprietary funds - Waterworks and Sewerage Fund and Arboretum Golf Course Fund. All remaining proprietary funds are aggregated and reported as nonmajor proprietary funds. The Village administers the following major governmental funds: General Fund -This is the Village's primary operating fund . It accounts for all financial re sources of the general government, except those required to be accounted for in another fund. The services which are administered by the Village and accounted for in the General Fund include general · government, public safety and public works . The Village administers the following major proprietary funds: Waterworks and Sewerage Fund -This fund accounts for the provision of water and sewer services to the residents of the Village. All activities necessary to provide such services are accounted for in this fund, including but not limited to, administration, operations, maintenance, financing and related debt service and billing and collection. Arboretum Golf Course Fund -This fund accounts for the operation of the Arboretum golf course. All activities necessary to provide the service are accounted for in this fund including, but not limited to, administration, operations, maintenance and related debt service. The VilJage 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 VilJage 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. 32 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 20 II I. Summary of Significant Accounting Policies (Cont.} C. Measurement Focus and Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis o f accounting; as ·are the proprietary fund financial statements. Revenues are recorded when ·earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flow takes place. Nonexchange transactions, in which the Village gives (or receives) value without directly receiving (or giving) equal vafue in exchange, include various taxes, State shared revenues and various State, Federal and local grants .. On an accrual basis, revenues from taxes are recognized when the Village has a legal claim to the resources. Grants, entitlements, State-shared revenues and similar items are recognized in the fiscal year in which all eligibility requirements imposed by the provider have been met. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or . soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal year. Significant revenue sources which are susceptible to accrual include sales, telecommunications, income, utility use 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 e.mployee retirement or termination). General capital asset acquisitions are reported as expenditures in governmental funds. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are fo ll owed in both the government-wide and proprietary fu nd fi nanc ial statements to the extent that those standards do QOt conflict with or contradict guidance of the Governmental Accounting Standards Board. Proprietary funds distinguish operating re~eQues '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 frrst, then unrestricted resources as they are needed . D. Cash Equivalents . . For purposes of th e 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. 33 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 3I, 20 II 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: (I) securities wh ich are guaranteed by the full faith and credit of the U.S. Government as to principal and interest; (2) bonds, notes, debentures or other· similar obligations of the United States of America or its agencies; (3) certificates of deposit or time deposits of any bank, as defined by the Illinois Banking Act, or savings and loan association incorporated under the laws of Illinois which are insured by a Federal corporation; (4) short-tenn discount obligations of the Federal National Mortgage Association; (5) certain short-tenn 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 I80 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 pennitted to invest in the following instruments: (I) general accounts of Illinois-licensed life insurance companies; (2) separate accounts of Illinois-licensed companies invested in stocks, bonds, and real estate, limited to I 0 percent 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 fo r 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 bet,ween funds for a price approximating their external exchange value. lnterfund services provided and used are reported as revenues in sell er 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. 34 VILLAGE OF BUFFALO GROVE, ILLINO IS Notes to the Financial Statements December 31, 20 11 I . 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 acquisit ion s 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 per iod. 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 th e 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 rev~nue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. 35 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 20 II I. 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 carri ed 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 acc umulated vacation benefits are not material. In the event of termination, any vested amounts due to Village employees for accumulated unused sick leave will be paid to ICMA Retirement Corporation based on the formula set forth in the Village's personnel manual. Except for those amounts for known retirements in the upcoming year, accrued amounts are generally considered to be noncurrent. Amounts are reported as liabilities in the Government-wide Statement of Net Assets. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. L. Long-Term Obligations In the government-wide financial statements and proprietary ·fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities and proprietary fund statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bond issuance costs are reported as deferred charges and amortized .over the term of the related debt. In the fund financial statements, governmental funds recognize bond .premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt i~suances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Debt service funds are specifically established to account for and service the long-term obligations for the governmental funds debt. Proprietary funds individually account for and service the applicable debt that benefits those funds. Long-term debt is recognized as a liability in a governmental fund when due, or when resources have been accumulated for payment early in the following year. For other long-term obligations, only that portion expected to be financed with available financial resources is reported as a fund liability of a governmental fund . M. Fund Balances/Net Assets There are five classifications of fund balance: (l) Nonspendable-amounts that are not in spendable form (such as inventory) or are required to be main tained intact. (2) Restricted -amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through constitutional provisions or by enabling legislation. (3) Committed -amounts constrained to specific purpose by a government itself, using its highest level of decision-making. authority. To be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint. (4) Assigned-amounts a government intends to use for a specific purpose. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. 36 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 3 I , 20 II 1. Summary of Significant Accounting Policies (Cont.) M. Fund Balances/Net Assets (Cont.) (5) Unassigned -amounts that are available for any purpose. These amounts are on ly reported in the General Fund. Fund balance is displayed in the order of the relative strength ·of the spending constraints placed on the purposes for which resources can be used . The Village's flow of funds assumption prescribes that the funds with the hig hest level of constraint are expended first. If restricted or umestricted funds are available for spending, the restricted funds are spent first. Additionally, if different levels ofumestricted funds are available for spending, the Village considers committed funds to be expended first followed by assigned and the unassigned funds. The Village has committed $7,362,030 for the replacement of capital equipment in the General Fund. The Street Maintenance Fund has a deficit balance of $234,206. The deficit will be funded by a transfer from the Motor Fuel Tax Fund in 20 12. N. Accounting Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of conting~nt 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. 0. Eliminations and Reclassification In the process of aggregating data for the government-wide Statement of Act\vities, 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 fmancial statements represent the Village's program budget and the appropriations represent the Village's legal expenditure limit. Budgets are adopted for General, Special Revenue, 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 of financing them . (2) Appropriation ordinance public hearings are conducted by the Village to obtain taxpayer comments, and the ordinance is subsequently adopted by the Board. (3) The program budget is legally enacted through a resolution adopted by the Board . (4) Any expenditures that exceed the total appropriations at the fund level must be approved by the Board of Trustees. 37 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 20 II 2. Legal Compliance (Cont.) The Village Manager is authorized to transfer budgeted amounts between departruents 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 2011 exceeded fmal budget by $563,509. Street Maintenance Fund expenditures exceeded fmal budget by $108,665. 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 31,2011: Maturities (in Years) Fair Less Than 1 to 5 6 to 10 More Than Value One Year Years Years 10 Years U.S. Treasuries-Zero Coupon $10,ll3,98l 999,141 4,879,295 4,235,545 U.S. Treasuries-TIPS 5,881,789 2,573,658 3,308,131 U.S. Treasuries 1,865,242 953,557 911,685 FNMAs 1,250,940 1,000,162 250,778 GNMAs 1,707 599 1,108 U.S. Agencies 5,008,612 742,847 4,265,765 Municipal Bonds 215,480 49,824 165,656 Corporate Bonds 1,200,199 211,581 988,618 Illinois Funds* 966,559 966,559 Illinois Metropolitan Investment Fund* 6,346,041 6,346,041 Money Market Funds* 5,959,651 5,959,651 $38,810,201 7,925,351 16,757,564 14,127,286 *Based on the weighted average maturity of the respective fund. The Illinois Metropolitan Investment Fund (!MET) and The Illinois Funds Investment Pool (IFIP) are not registered with the SEC. Oversight for !MET is provided by the !MET 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. 38 VILLAGE OF BUFFALO GROVE, ILLINO IS Notes to the Financial Statements December 31, 20 II 3. Deposits and Investments (Cont.) 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 speci fic issuer, or a specific c lass 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 I 0% of the issuer corporation's outstanding obligations . Credit ratings for the Village's investments in debt securities as described by Standard & Poor's and Moody's, respectively, at December 31, 2011 (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 Municipal Bonds Corporate Bonds Illinois Funds lllinois Metropolitan Investment Fund Money Market Funds NR -Not Rated D. Concentration of C redit Risk Ratings AAA/AA+ AA2, AA3 /A, NR AA2, AAA3/AA+, AA- AAA/NR AAA/NR AAA/NR %of Investment TyPe 100% 100% 100% 100% 100% IOO% 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, 20 II , the Village's investments were not exposed to concentration of credit risk. 39 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2011 3. Deposits and Investments (Cont.) 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 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 $10,351,337 and the bank balances totaled $11,146,564. As of December 31, 2011, $1,822 of the Village's deposits 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. The County Assessors of Cook and Lake Counties are responsible for assessment of the taxable real property of the Village lying within their respective counties. One quarter of Lake County is reassessed each year on a repeating quadrennial schedule established by the Assessor. One-third of Cook County is reassessed each year on a repeating triennial schedule established by the Assessor. The County Clerks compute the annual tax for each parcel of real property and prepare tax books used by the County Collectors as the basis for issuing tax bills to all taxpayers in each County. Property taxes are collected by the County Collectors and are submitted to the County Treasurers, who remit to the units their respective shares of the collections. Taxes levied in one year become due and payable in two instalhnents on March I and August 1 during the following year in Cook County and on July I and September I in Lake County. The first installment is an estimated bill and is one-half of the prior year's tax bill while the second instalhnent is based on the current levy, assessment and equalization, and any changes from the prior year less what was paid as part of the frrst instalhnent. 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 I ofthe levy year. The 2011 property tax levy is recorded as a receivable and deferred (unearned) revenue as it is intended to fmance fiscal year 2012. 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 40 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 20 II 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!!!2: I Additions Deletions December 31 Capital Assets Not Being Depreciated Land $ 35,963,844 35 ,963 ,844 Construction in Progress 2,517,931 321 ,950 2,460,293 379,588 38,481,775 32 1,950 2,460,293 36,343,432 Capital Assets Being Depreciated Bu ildings 21,900,349 134,186 22,034,535 Equipment and Vehicles 12,400,496 864,273 502,694 12,762,075 Land Improvements 606,285 2,498,429 3 ,104,714 Streets 19,040,719 19,040,719 Storm Sewers 37,665,289 37,665,289 91 ,613,138 3,496,888 502,694 94,607,332 Less Accumulated Depreciation For Buildings 17,625,592 662,604 18,288,196 Equipment and Vehicles 7 ,919,775 812,431 502,694 8,229,512 Land Improvements 24,250 62,108 86,358 Streets 10,633 ,788 371 ,053 11 ,004,841 Storm Sewers 32,057,393 782,138 32,839,531 68,260,798 2,690,334 502,694 70,448,438 Total Capital Assets Being Depreciated, Net 23,352,340 806,554 24,158,894 Governmenta l Activities Capital Assets, Net $ 61 ,834,115 1,128,504 2,460,293 60,502,326 41 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the F inancial Statements December 31, 20 II 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: Balances Balances Janu!!!X I Additions Deletions December 31 Capital Assets Not Being Depreciated Land $ 6,198,514 6,198,5 14 Construction in Progress 282,343 954,977 1,237,320 6,480,857 954,977 7,435,834 Capital Assets Being Depreciated Bui ldi ngs 10,284,359 10,284,359 Land Improvements 1,966,488 1,966,488 Equipment 94,510 94,510 Water/Sewer System Infrastructure 56,395,383 56,395,383 68,740,740 68,740,740 Less Accumulated Depreciation For Buildings 5,537,594 521,440 6,059,034 Land Improvements 1,966,485 1,966,485 Eq uipment 94,510 94,510 Water/Sewer Infrastructure 29,212,039 1,037,357 30,249,396 36,810,628 1,558,797 38,369,425 Total Capital Assets Being Depreciated, Net 31 ,930,112 ~1,558,7972 30,371,315 Business-type Activities Capital Assets, Net $ 38,410,969 (603 ,820) 37,807,149 c. Depreciation Charged to Functions/ Activities Depreciation was charged to functions/activities as follows: Governmental Business-Type Activities Activities General Government $ 386,697 Public Safety 749,629 Public Works 1,554,008 Waterworks and Sewerage 1,037,357 Golf Courses 521,440 $ 2,690,334 1,558,797 42 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2011 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: Governmental Activities General Obligation Bonds (Cont.) $1,000,000; 2.65o/o-4.1% General Corporate Purpose Bond Series of 20028; payable in annual installments of$110,000 to $140,000 through December 31, 20 11. $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 December31,2013: · $5,160,000, 2.0o/o-4.0% General Corporate Purpose Refunding Bond Series o f20 lOA ; payable in annual . installments of$325,000 to $620,000 through December 31, 2020. $2,600,000 , 2.50%-3.85% General Corporate Purpose Bond Series of 201 OB; payable in annual installments of$180,000 to $260,000 through December 31, 2025. Loss on refunding Unamortized bond premium Total General Obligation Bonds . Accumulated Unpaid Sick Leave Total Governmental Activities $ $ Balances January! 140,000 920,000 4,595,000 2,600,000 (107,493) 161 500 8,309,007 1,5 89,549 9,898,556 43 Balances Additions Reductions December 31 140,000 295,000 625,000 620,000 3,975,000 2,600,000 (10,749) (96,744) 18,357 143,143 1,062 ,608 7,246,399 281,179 352,828 11517 1900 281 ,179 1,415,436 8,764,299 Due Wi thin One Year 305,000 615,000 920,000 180,240 1,100,240 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 2011 6 . Long-Term Obligations (Cont.) In prior years, the Village defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Village's financial statements. At December 31, 20 II, $4,050,000 of bonds outstanding are considered defeased. Annual Debt Service Requirements to Maturity The annual requirements to amortize all debt outstanding as of December 31, 2011, for governmental activities are as follows: Governmental Activities Year Ending General Obligation Bonds December 3 I, Principal Interest 2012 $ 920,000 218 ,695 2013 940,000 196,788 2014 790,000 173 ,988 2015 510,000 157,288 2016 525,000 144,538 2017-2021 2,530,000 444,013 2022-2025 985 000 94,385 $ 7,2002000 1,429,695 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 financial 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 armual covered salary. The statutes require employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rate for calendar year 2011 was 12.92% 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. 44 VILLAGE OF BUFFALO GROVE, ILLI NOIS Notes to the Financial Statements December 31 , 20 II 7. ·Employee Retirement Systems (Cont.) A. Ill inois Municipal Retirement (Cont.) Annual Pension Cost The Villages annual pension cost of $1 ,080,295 for the regular plan was equal to the Village's required and actual contributions. Three-Year Trend Information for the Regular Plan Fiscal Year 12/31 /2011 12/31 /2010 12/31 /2009 Annual Pension Cost (APC) $ 1,080,295 1,064,445 967,012 Percentage ofAPC ·Contributed 100% 100% 100% Net Pension Obligation 0 0 0 The required contribution was determined as part of the Dece mber 31, 2009 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31 , 2009 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 I 0% per year depending on age and service, attributable to seniority/merit; and (d) post-retirement benefit increases of 3% annually. T he actuarial value of the Village's regular plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and market value of assets. T he Village's regular plan's unfunded actuaria l accrued liabi lity at December 31, 2009 is being amortized as a level percentage of payroll on an open 30 year basis. Funded Status and Funding Progress As of December 3 1 201 1, the regular plan was 72.53% funded. The actuarial liability for benefits was $28,250,245 and the actuarial va lue of assets was $20,488,69 1, resulting in an underfunded actuarial accrued liability (UAAL) o f $7,761,554 . The covered payroll for calendar year 201 1 (annual payroll of active employees covered by the plan) was $8,361,416 and the ratio of the UAAL to the covered payroll was 93%. The Schedule of Funding Progress, presented as Required Supplementary Information following the Notes to th~ 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 li ability for benefits. Defined Benefit Pension Plans for Public Safety Employees The information included in sections 8 through F pertaining to the Village's Police and F irefighters' p ension funds is based on actuarial valuations performed December 31, 2010. 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, 2011. 45 VILLAGE OF BUFFALO GROV E, ILLINOIS Notes to the Financial Statements December 3 1, 20 II 7. Employee Retirement Systems (Cont.) B. Police Pension Plan Description Poli ce 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 Compi led 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 Tenninated Employees Entit led to Benefits but Not Yet Receiving Them Current Employees Vested Non vested Total 3 1 55 _H The PoliCe Pension Plan provides · retirement benefits as we ll as death and disabili ty benefits. Employees atta~ning the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of2.5% of final salary for each year of service up to 30 years, to a maximum of 75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. Effective for police employees hired after January l , 20 11 , the nonnal retirement age will be 55. Employees will be eligible to retire at age 50 with a 6% reduction for each year prior to age 55. The annual pens ionable sa lary shall not exceed $106,800; however, effective January l, 2011, that amount shall annually th ereafter be increased by the lesser of (I) 3% of that amount, including all previous adjustments, or (2) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index for the 12 months ending with the September preceding each November l, including all previous adjustments. Surviving spouses receive I 00% of final salary for fatalities resulting from an act of duty, or otherwise the greater of 50% of final salary or the employee's retirement benefit. Employees disabled in the line of duty receive 65% of final salary. · · The month ly pension of a poli ce officer who retired with 20 or more years of service after January 1, 1977 is increased annually, following the first anniversary date of retirement and 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 detennined by an enrolled actuary. By the year 204 1 the Village's contributions must accumulate to the point where the past service cost for the Police Pension Pl an is fully funded. Actuarial valuations are perfonned annually. 46 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financi.al Statements December 31, 20 II 7. Employee Retirement Systems (Cont.)· B. Police Pension (Cont.) Annual Pension Cost and Net Pension Asset At December 31, 2011, the Village's annual pension cost was $2,140,865. The Village's actual contribution was $2,201,593. For a description of the significant actuarial assumptions, see "Significant Actuarial Assumptions." The net pension asset at December 31,2011 was $255,540, comprised of the following components: Annual Required Contribution (ARC) $ 2,145,917 Interest on the Net Pension Asset (13,637) Adjustment on the ARC 8 585 Annual Pension Cost 2,140,865 Contributions Made 2,201,593 Increase in Pension Asset 60,728 Pension Asset at January 1, 2011 194,812 Pension Asset at December 31, 2011 $ 255!540 The net pension asset of $255,540 is reported by the Village in the · government-wide Statement of Net Assets at December 3 l, 20 II. Three-Year Trend Information/or the Police Pension Plan Fiscal Pension Year Cost(APC) 12/31 /2011 $ 2,140,865 12/31 /2010 2,'035,302 12/31/2009 1,750,490 Reserves and Concentration of Investments ofAPC Contributed · 102.80% 101.40% 98.40% Net Pension Asset 255,540 194,812 166,984 There are no as'sets 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. 47 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2011 7. Employee Retirement Systems (Cont.) C. Firefighters' Pension Plan Description Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined benefit single- employer pension plan. Although this is a single-employer pension plan, the defined benefits as well as the employee and employer contributions levels are mandated by Illinois Compiled Statutes and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension trust fund . The plan does not issue a stand-alone financial report. The Firefighters' Pension Plan membership consisted of:· Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but Not Yet Receiving Them Current Employees Vested Non vested Total 12 49 J1 The Firefighters' Pen.sion 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 frre 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. Effective for firefighters hired after January I , 2011 , the normal retirement age will be 55. Employees will be e li gible to retire at age 50 with a 6% reduction for each year prior to age 55. The annual pensionable salary shall not exceed $106,800; however, effective January I, 2011 , that amount shall annually thereafter be increased by the lesser of (I) 3% of that amount, including all previous adjustments, or (2) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index for the 12 months ending with the September preceding each November 1, including all previous adjustments. Surviving spouses receive 100% of final salary for fatalities resulting from an act of duty, or otherwise the greater of 54% of the final salary or the monthly retirement pension that the deceased firefighter was receiving at the time of death. Surviving children receive 12% of the final salary. The maximum family survivor benefit is 75% of final salary. Employees disabled in the line of duty receive 65.% of final salary. The monthly pension of a frrefighter who retired with 20 or more years of service after January I , 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. 48 VILLAGE OF BUFFALO GROVE, ILLINO IS Notes to the Financial Statements December 3I, 20 II 7. Employee Retirement Systems (Cont.) C. Firefighters' Pension (Cont.) 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 2041 the Village's contributions must accumulate to the point where the past service cost for the Firefighters' Pension Plan is fully funded. Actuarial valuations are performed annually. Annual Pension Cost and Net Pension Asset At December 31, 2011, the Village's annual pension cost was $1,965,831. The Village's actual contribution was $2,033,998. For a description of the significant actuarial assumptions, see "Significant Actuarial Assumptions." The net pension asset at December 3I, 20II was $264,103, comprised of the following components: Annual Required Contribution (ARC) $ 1,970 ,913 Interest on the Net Pension Asset (13,716) Adjustment on the ARC 8 634 Annual Pension Cost I ,965,831 Contributions Made 2,033,998 Increase in Pension Asset 68,167 Pension Asset at J anuary I, 20 II 195,936 Pension Asset at December 3I, 20 II $ 264,I03 The net pension asset of $264,103 is reported by the Village in the government-wide Statement of Net Assets at December 3I, 20 II. Three-Year Trend Information for the Firefighters ' Police Pension Plan Fiscal Year I2/31/2011 I2/31/20IO 12/31/2009 Annual Pension Cost (APC) $ 1,965,831 1,902,270 1,502,215 Reserves and Concentration of Investments Percentage ofAPC Contributed I03.50% 100.80% 99.20% Net Pension Asset 264,103 I95,836 179,74I 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. 49 VILLAGE OF BUFFALO GROVE, ILLINOI S Notes to the Financial Statements December 31 , 20 II 7 . Employee Retirement Systems (Cont.) 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 p eriod in which the contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Administrative costs for the Police and F irefighters' Pension Plans are fmanced primarily through investment earnings. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. 1 , E. Funded Status and Funding P rogress -Pension Trust Funds The funded status of the Police and Firefighters' Pension P lans as of December 31, 20 I 0, the most recent actuarial valuation date, is as follows: Actuarial Unfunded UAALas a Actuarial Accrued (Overfunded) Percentage Value of Liability (AAL) AAL Funded Covered of Covered Assets Entry Age (UAAL) Ratio Payroll Payroll Plan ~a2 ~b2 ~b-a2 ~alb2 ~c2 ~b-a21c Police Pension $ 41 ,427,183 68,989,180 27,561 ,997 60.05% 5,923,012 465 .34% Firefighters' Pension 33 ,498,856 52,883,349 19,384,493 63.34% 5,486,606 353.31% The Schedules of Funding Progress, presented as Required Supplementary Information following the Notes to the financial Statements, present multi-year trend information about w hether 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 2011 20 11 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 50 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 3I, 20 II 7. Employee Retirement Systems (Cont.) F. Significant Actuarial Assumption (Cont.) Amortization Method Significant Actuarial Assumptions (a) Remaining Amortization Period (Years) (b) Rate of Return 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 Illinois Municipal Retirement Level Percentage ()f Projected Payroll -Open 30 Year Basis 30 7.50% Compounded Annually 4.00% Compounded Annually 0.4% to IO .O% 3.00% 51 Police Firefighters' Pension Pension . Level Precentage Level Precentage of Projected of Projected Payroll -Closed Payroll -Closed Basis Basis 29 29 7.00% 7.00% Compounded Compounded Annually Annually 5.00% 5.00% Compounded Compounded Annually Annually (Note: Separate Information for (b) and (c) not available) 3.00% 3.00% Compounded Compounded VILLAGE OF BUFFALO GROVE, ILLINO IS Notes to the Financial Statements December 31 , 20 II 7. Employee Retirement Systems (Cont.) F. Significant Actuarial Assumption (Cont.) Statement of Fiduciary N et Assets -Pension Trust Funds Assets Cash and Cash Equivalents Investments Certificate s 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 Police Firefighters' Pension Pension $ 7 ,331 ,908 1,426,93 2 9 ,091,863 18,302,682 6 ,485,269 17,078,917 16 ,975 ,200 1,769,840 1,5 19,078 8 167 77 617 44,491,514 35,575 ,959 6 839 3 170 $ 44,484 ,675 35 1572,789 Schedules of Funding Progress for the Plans are presented in the Required Supplemental Information Section. -~. 52 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 20 I I 7. Employee Retirement Systems (Cont.) G. Individual Plan Financial Statements (Cont.) H. Statement of Changes in Fiduciary Net Assets-Pension Trust Funds Police Firefighters' Pension Pension Additions Contributions Employer $ 2 ,20 1,593 2 ,033 ,998 Participants 812!363 505 1291 3 1013 1956 2!539!289 Investment Income Net Appreciation in Fair Value of Investments 1,914,001 178 ,276 Interest Income 96,902 446,594 Less: Investment Expense ~126!431 ~ {79 1094~ I 884 472 545 776 Total Additions 4,898!428 3!08\065 Deductions Administration 18,628 45 ,192 Pension Benefits and Refunds 1,822!308 965!939 Total Deductions 1!840!936 11011 1131 Change in Net Assets 3,057,492 2,073 ,934 Net Assets Beginning 41!427)83 33!498!855 Ending $ 44,484,675 35,572,789 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 defined benefit healthcare plan administered by the Village. The Plan provides medical and dental insurance benefits to eligible retirees and their dependents. The benefits, benefit levels, employee contributions and employer contributions are governed by the Village Board and can only be amended by the Village Board. The Plan is not accounted for as a trust fund as an irrevocabl e trust has not been establi shed. The Village does not issue a Plan fmancial report. 53 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 20 I I 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 Descri ption." The required contribution is based on projected pay-as-you-go fmancing requirements. For fiscal year 2011, the Village cqntributed $68,239 to the plan, including $68,239 for current premiums (approximately 20% of total premiums). Plan members receiving benefits contributed $343,326, or approximately 80% of the total premiums, through their required contribution of $586.04 per month for retiree-only coverage, $1,168.91 per month fo r retiree and dependent coverage, and $2,059.12 per mo nth for fam il ~coverage. !4nnual 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 of GASB Statement 45. ·The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or fund ing excess) over a period not to exceed thirty years. The fo ll owing table shows the components of the Village's annual O PEB cost for the year, the amount actuall y 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 Contr ibution Annual O PEB cost Village Contributions Made Increase in OPEB Liabi lity Net O PEB Liability at January I , 20 I I ~et OPEB Liability at December 3 1, 20 I I $ 122,505 13,116 (8,744) 126,877 68,239 58,638 262,328 $ 320,966 The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net O PEB obligation for 20 II was as fo llows: Annual of Annual Fiscal .OPEB OPEB cost NetOPEB Year Cost Contributed Obligation 12/31 /20 1 1 $ 126,877 53.80% 320,966 . 12/3 1/2010 125,916 54.20% 262,328 12/31 /2009 126,135 54.10% 204,651 54 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 20 II 7. Employee Retirement Systems (Co1_1t.) . H. Other Post-Employment Benefits {OPEB) (Cont.) Funding Status and Funding Progress As of December 3 1, 20 II, the plan was I 00% unfunded. The actuarial accru ed liability for benefits was $4,375,822; and the actuarial value of assets was $0 (zero), resulting in an unfunded actuarial accrued liability (UAAL) of $4,375,822. The covered payroll (annual payroll of active employees covered by the plan) was $18,846,443, and the ratio of the UAAL to the cov~red payroll was 23.22%. 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. A ctuarial 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 h istorical pattern 9f 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-teim volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with·the long-term perspective of the calculations. In the December 3 1, 2009 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%. 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 an open 30 year.basis. 8. Contingent Liabilities Litigation The Village is a defendant in various 'tawsuits. Although th e outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney, the resolution of these matters wi ll not have a material adverse effect on the financial condition of the Village. Northwest Water Commission (NWWC) The Village's water purchase contract with the Northwest Water Commission (Note ll.B) provides that each member is li able for its proportionate share of any costs arising from defaults in payment obligations by other members. · 55 VILLAGE OF BUFFALO GROVE, ILLI NOIS Notes to the Financial Statements December 31 , 20 I I 8. Contingent Liabilities (Cont.) Solid Waste Agency of Northern Cook County (SW ANCC) The Village's contract with the Solid Waste Agency of Northern Cook County (Note ll.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 31,2011, are shown as follows: Receivable Fund Payable Fund Amount Due to/from Other Funds Motor Fuel Tax Fund Capital Projects -Streets $ 347,208 Motor Fuel Tax Fund Health Insurance Fund 456,242 Motor Fuel T ax Fund General Fund 53 ,593 lnterfund 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 , 201 1 consisted of the following : Receiving Fund General Fund Facilities Development Debt Service Motor Fuel Tax Fund Facilities Development Capital Projects Arboretum Golf Course Fund Buffalo Grove Golf Course Fund Transferring Fund Waterworks and Sewerage Fund Waterworks and Sewerage Fund General Fund G eneral Fund General Fund G eneral Fund The purpose of the significant transfers is as follows: Amount $ 705,000 200,000 6 15 ,284 371,070 168 ,000 184,000 The General Fund transferred $371,070 for capital projects to the Facilities Development Capital Projects Fund, $615,284 for street maintenance to the Motor Fuel Tax Fund, $168,000 to the Arboretum Golf Course Fund for op erations, and $184,000 to the Buffalo Grove Golf Course Fund for operations . The Waterworks and Sewerage F und transferred $705,000 for administrative expenses to the General Fund and $200,000 for debt service to the Facilities Development Debt Service Fund. 56 VIL LAGE OF BUFFALO G ROVE, IL LI NOIS Notes to the Financial Statements December 31, 20 II 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 Ill inois 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 90nsulting and training programs; and a risk information system and fmancial reporting service for its members. The Village's payments to IRMA are displayed on the fmancial statements as expenditures/expenses in appropriate funds. Each member assumes the first $1,000 of each occurrence for years prior to 2004, and $2,500 for each occurrence in 2004 and subsequent years. Beginning in 2005, members were given the option to assume higher deductibles. IRMA has a mix of self-insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The Village does not exercise any control over the activities of the Agency beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual member's eligib le 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 Vill age reports its risks of loss for health claims in the Health Insurance Reserve Fund, which is reported as an internal service fund. T he self-insurance liability includes an estimate of incurred but not reported claims. A reconci li ation of the total claims liability for 2009 through 2011 is below: 2011 20 10 2009 Unpaid Claims Liability -Beginning of Year $ 334,173 268,746 226,252 C laims Incurred 3,743,361 3,885,636 3,407,284 Claims Paid (3,679,440) (3,820 ,209) (3,364,790) Unpaid Claims Liability-End of Year $ 398!094 334,173 268,746 57 VILLAGE OF BUFFALO GROVE , ILLINOIS Notes to the Financial Statements December 31, 2011 II. Joint Ventures A. Solid Waste Agency of Northern Coo.k County (SW ANCC) 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, finan ce, operate and maintain a solid waste disposal system to ser ve its members. The members of the Agency and theii percentage shares based on a fonnula contained in the Agency agreement are: %Share %Share Arlington Heights ll.l 3 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 He ights 1.38 Glencoe , 1.5 3 Rolling Meadows 2.90 Glenview 4.77 Skokie 8 .15 Hoffman Estates 3.71 South Barrington 0.70 Inverness l.l5 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 fonn 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 detennines the general policy of the Agency, makes a ll 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 perfonns such d uties 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 specifi cally reserved to the Board of Directors by the Act, the Agency Agreement or the Bylaws. 58 VJ·LLAG E OF BUFFALO GROVE, ILLINOIS Notes to the. financial Statements December 31, 20 II II . Joint Ventures (Cont.) A. Solid Waste Agency ofNortheq~ Cook County (SWANCC) (Cont.) Summary Financial Information of Joint Venture Summary of Financial Position as of April 30, 20 I I : Current Assets Restricted Assets ·Capital Assets Other Assets $ 4 ,471 ,458 2,371,951 I I,228,739 66,091 $ 18 ,13 8,239 ·Liabilities and Net Assets . Current Liabili ties Long-term Liabilities Total Liabiliti es Net Assets $ 5,I64,235 4,788,844 9,953,079 8,185,160 .. $ 18,I38,239 Summary of Revenue, Expenses and Changes in Net Assets for the year ended Aprll 30, 20 l l : · Operating Revenues Operating Expenses Operating Income Nonoperating Expenses Change in Net Assets Net Assets May 1 April30 $ 14,222,737 13 ,893,000 329,737 (242,615) 87 ,I22 8 ,098 ,03 8 $ 8 ,185,160 Complete financial statements for SW ANCC can be obtained from the Agency's adm inistrative office at 2700 Patriot Boulevard, Suite 110, Glenview, Illinois 60026. _The Agency's bonds are reven ue obligations. They are limited obligations of the Agency with a claim fo r 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 th e disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees, service c harges 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 ~ well as project costs. 59' VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2011 II. 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 ofthe 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 constitutionaJ limitation. In accordance with the joint venture agreement, the Village remitted $935,365 to SWANCC for the year ended December 31, 2011. 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, finance, operate and maintain a water supply system to serve its members and other potential water purchasers. 60 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 20 1 1 II . 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 of Buffalo Grove Village of Palatine Village of Wheeling %Share 35.82 18.45 27.90 17.83 100 .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 provid ing 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 Fin ancial Information of Joint Venture for the fiscal year ended April30, 2011: Current Assets Restricted Assets Capital Assets Other Assets $ 2,488,227 11,207,631 33,375,476 71 803 $ 47,143,137 61 Liabilities and Net Assets Current Liabilities Long-term Liabilities Total Liabilities Net Assets $ 3,649,032 4,226,654 7,875,686 39,267,451 $ 47,14 3,137 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2011 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 1 April30 $ 9 ,075,414 9,349,739 (274,325) 39,541,776 $ 39,267 ,451 Complete financial statements for NWWC can be obtained from the Commission's administrative office at 1525 North Wolf Road, Des Plaines, Illinois 60016. The Commission's bonds are revenue obligations. They are limited obligations of the Commission with a claim for payment solely from and secured by a pledge of the revenues of the System and amounts in various funds and accounts established by Commission resolutions. The bonds are not a debt of any member. The Commission has no power to levy taxes. Revenues of the System consist of (1) all receipts derived from Water Supply Contract of any other contract for the supply of water; (2) all income derived from the investment of monies; and (3) all income, fees, water service charges and all grants, rents and receipts derived by the Commission from the ownership and operation of the System and the sale of water. The Commission covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. The Commission has entered into Water Supply Contracts with the four member municipalities for a term of 40 years, extending to 2025. The Contracts are irrevocable and may not be terminated or amended except as provided in the Contract. Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum annual quantity of water. The Commission has entered into an agreement with the City of Evanston under which the City has agreed to sell quantities of lake water sufficient to supply the projected water needs of the Commission through the year 2025. · The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable, without regard to performance or nonperformance by the Commission of its obligations under this Contract. The payments required to be made by the Village under this Contract shall be required to be made solely from revenues to be derived by the Village from the operation of the Village's System. The Village is not prohibited by the Contract from using any other available funds to make the payments required by the Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. 62 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 20 11 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 a ll other accounts ofthe Village's System Fund in which there are available funds. In accordance with the joint venture agreement, the Village remitted $1,778,513 to .NWWC for the year ended December 31, 2011. The Village's equity interest in NWWC was $7,244,845 at December 31, 20 II. The Village's net investment and its share of the operating results of NWWC are recorded in the Village's Waterworks and Sewerage Fund. C ommitments 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 18.45%. 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 enablin g 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 ofthe 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 l;>enefit 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 th e retailer from credit sales as provided in the agreement. The agreement commenced November 2000 (first sales tax year), was amended in March 2003 and August 2009, and terminates in calendar year 2020. The terms of th e agreement indicate that beginning in November 2000, the Village and the retailer shall distribute on a monthly basis, the· municipal sales taxes resulting from taxable credit sales with single-order acceptance at the retailer's property and received by the Village in the following amounts: • For the first sales tax year through calendar year 2010, 80% to the retailer and 20% to the VIllage, in addition to any interest accrued on such amounts. For calendar years 20 II through 2020, 75% to the retailer and 25% to the Village; and • Amended in August 2009 to reflect that for calendar years 20 I 0 through 2020, 60% to the retailer and 40% to the Village. 63 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 20 ll 13. Pledged Revenues (Cont.) Not withstanding the terms stated above, the minintum municipal sales taxes to be retained by the Village shall be as follows: · • No.less than $500,000 annually beginning with calendar years 2011 through 2020; and • Amended in August 2009, the minimum sales tax cap was eliminated. In the event that the municipal sales taxes retained by the Village fe ll below the mi n imum amount noted above, the Village was to document the difference and invoice the retailer for the said amount, which shall be paid within 30 days of receipt. The total municipal sales taxes remitted to the local retailer was $266,672 . Municipal sales taxes totaling S58,200 was due to the local retailer as of December 31 , 2011 , and is included in accounts payable on the Statement ofNet 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 31,2011 are as follows: Year Ending December 31 , Amount 2012 $ 112,470 2013 114,720 2014 11 7 ,014 2015 119,354 20 16 121,741 2017-2021 646 ,218 2022-2025 515,937 $ 1,747,454 Restatements During the year ended December 31, 2011, the Village implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which enhanced the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied, and by clarifYing the existing governmental fund type definitions. Previously, fund balance of governmental funds ·was d ivided into three categories -reserved, unreserved/designated and unreserved/undesignated. The new reporting requirement eliminated those categories and replaced them with five new categories th at are described in Note l.M. In addition, under the new governmental fund type defmitions, one of the Village 's funds no longer meets the criteria t o be represented as a special revenue fund. 64 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31 , 20 I I 15. Restatements (Cont.) During the year ended December 31, 20 II , the Village changed its method of recording deferred property tax revenue. In the past the Village had followed the 60-day rule for determining currentyear revenue. The Village no longer follows the 60-day rule as the entire levy is intended to fund the next year's operations. During the year ended December 31, 2011, the. Village re stated beginning fund balances of governmental funds and net assets of Governmental Activities as follows: · . (a) Beginning fund balance of the Retiree Health Savings Fund totaling $931 ,345 was combined with the General Fund, since it no longer meets the criteria to be classified as a speCial revenue fund under GASB Statement No. 54. (b) Fund balances of the General, Facilities Development Debt Service, and lMRF Funds were adjusted as a result of a change in methodology for recording deferred property tax revenue, aJso resulting in a . decrease in Governmental Activities Net Assets of $379,635. Fund balance of the General, Facil ities Development Debt Service, and IMRF Funds decreased by $313,770, ·$22,80 1, and $43,064, respectively. Net Assets Governmental Activities Fund Balance General Fund Facilities Development Debt Service Fund · IMRF Fund Retiree Health Savings Fund Balance at January 1, 2011 as Previously Reported . $ 70,437,594 65 18,902,122 20,271 91,466 931,345 Adjustments (379,635) (b) 617,575 (a),(b) (22,801) (b) (43,064) (b) (931,345) (a) Balance at January I , 2011 . as Restated 70,057,959 19,5 19,697 (2,530) 48,402 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, 20 I I Revenues Charges for Services Licenses and Permits Fines and Fees Property Taxes Other Taxes Investment In come Miscellaneous Total Revenues Expenditures Current General Government Public Safety Public Works Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financi ng Sources (Uses) Proceeds from Sale of Assets Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance Beginning (as Restated) Ending See Note to Required Supplementary Information. Original/Final Appropriations $ 7,447,161 7 ,447,161 5,3 99,7 10 23 ,779,250 7 364,872 36,543,832 (29,096,671} {1 ,740,000} {1 174010002 $ {30183M712 66 Variance from Final Final Budget Budget Actual Over (Under} 934,957 1,057,275 122,318 273,900 280,139 6 ,239 1,514,700 1,404,308 (110,392} 11,504,690 11 ,771,878 267,188 17,401 ,187 17,074,091 (327,096} 254,012 132,7 10 (121 ,302} 772,746 1 079 191 306,445 32,656,192 32 799 592 143,400 4 ,369,580 4 ,883,254 513,674 22,068,875 21 ,627,997 (440,878) 5 ,884,334 6 375 047 490,713 32,322,789 32,886,298 563 ,509 333,403 (86,706} (420,109) 52,538 52,538 . 705,000 705,000 {11037!2032 {1 ,338,354} {301 ,1512 {332,2032 {5801816} {248,613} 1,200 (667,522) (668,722} 19,5191697 181852,175 VILLAGE OF BUFFALO GROVE, ILLINOIS Required Supplementary Information Analysis of Funding Progress December 3 1, 2011 Ill inois M unicipal Ret irement F und (b) ((b-a)lc) (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!l: Age {UAAL} Ratio Parroll Pa:l::roll 20 11 $ 20,488,691 28,250,245 7,761,554 72.53 % 8,361,416 92 .83 % 20 10 20,093,313 27,438,537 7 ,345,224 73.23 8,434,588 87 .08 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 Pol ice Pension Fund (b) ((b-a)lc) (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 Parroll Parroll 2010 $ 41 ,427,183 68,989,180 27,561 ,997 60.05 % 5,923,012 465 .34 % 2009 36,896,831 61,278,367 24,381,536 60.21 5,998,088 406.49 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 Firefighters' Pension F un d (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!l: Age {UAAq Ratio Parroll Pa:l::roll 2010 $ 33,498,856 52,883,349 19,384,493 63.34 % 5,486,606 353.31 % 2009 29,149,597 46,895,213 17,745,616 62 .16 5,429,462 326 .84 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 See Note to Required Supplementary Information. 67 VILL AGE OF BUFFALO GROVE, ILLIN OI S . Required Supplementary Information Employer Contributions Year Ended December 3 I 20 II Illinois Mun ici pal Retirement Fund Actuarial Valuation Date 2011 2010 2009 2008 2007 2006 2005 Poli ce Pension Fu nd Actuarial Valuation Date 2011 20 10 2009 2008 2007 2006 2005 Firefi ghters' Pens ion Fund Actuarial Valuation Date 2011 2010 2009 2008 2007 2006 2005 See Note to Required Supplementary Information. $ $ $ 68 Annual Required Percentage Contribution Contributed 1,080,295 100.0 % 1,064,445 100.0 967,012 100.0 907,890 100.0 819,958 100.0 800,153 100.0 704,606 100.0 Annual Required Percentage Contribution Contributed 2,145,917 102.6 % 2,038,612 101.2 1,754,664 98.2 1,754,664 106.5 1,594,227 98.6 1,429,749 98.1 1,075 ,170 95.8 Annual Required Percentage Contribution Contributed 1,970,913 103 .2 % 1,905,833 100.7 1,506,343 98.9 1,506,343 104 .9 1,334,734 100.6 1,297,773 88.3 984,799 103 .6 VILLAG E OF BUFFALO GROV E, ILLINOIS Required Supplementary Information · Other Post-Employment Benefits December 3 I 20 I I Ana lys is of Funding P r ogress Actuarial Valuation Date 12/31/20 11 12/31/20 10 12/31/2009 $ (a) Act uarial Value of Assets Em ployer C ontributions Fiscal Year Ending 12/31/2011 12/3 1/2010 12/31/2009 (b) Actuarial Accrued L iability .(AAL) E ntry Age 4 ,375,822 2 ,108,079 2 ,108,079 See Note to Req ui red Supplementary Infor mat ion . $ (b)-(a) Unfunded AAL (UAAL) 4,375,822 2 ,108,079 2 ,108,079 Required Cont ribution 122,505 122,505 123,689 69 ((b-a)/c) UAALasa (a)/(b) (c) Percentage Fun ded Covered of Covered Ratio P ayroll Payroll % 18,846,443 23.22 % 2 1,307,066 9.89 19,764 ,65 1 10 .67 P ercentage Cont ributed 55.70 % 55.70 55.17 VILLAGE OF BUFFALO GROVE, ILLINOIS Note to Required Supplementary Infonnation December 31 , 20 II · I. Budgetary Basis of Accounting The General Fund Budget is adopted m1 a basis of accounting consistent with accounting principles generally accepted in the United States of America. 70 COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET FINANCDlLSTATEMENTSANDSCHEDULES GOVERNMENTAL FUND TYPES NONMAJOR GOVERNMENT FUNDS - COMBU«NGSTATEMENTS VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2011 Special Debt Capital Revenue Service Projects Total Assets Cash and Equivalents $ 1,079,380 12,918 715,118 1,807,416 Receivab les Property Taxes . 1,569,405 938,696 2,508,101 Motor Fuel Tax 87,2 81 87,281 Due from Other Funds 857,043 857 043 Total Assets $ 3,593,109 951,614 715,118 5,259,841 Liabi lities Accounts Payable and Accrued Liabilities $ 169,949 375 404,035 574,359 Deferred Property Taxes 1,569,405 938,696 2,508,101 Due to Other Funds 347,208 347,208 Total Liabilities 1,739,354 939,071 751 1243 3,4291668 Fund Balances Restricted 1,707,639 12,543 198,081 1,918,263 Assigned 146,116 146,116 Unassigned {234,2062 {2341206} TotarFund Balances 11853 1755 12,543 {36,125} 118301173 Total Liabilities and Fund Balances $ 3,593 1109 951,614 715,118 5,259,841 71 72 NONMAJOR SPECIAL REVENUE FUNDS Illinois Municipal R etirement Fu nd -to account for revenues de riv ed from a separate property tax levy and employee contributio ns which are subsequently paid to the State-sponsored Illinois Municipal Retirement Fund. Motor Fuel Tax F und -to account for allotment of motor fuel taxes. These allotments are received from the State of lllinois. 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 trai n station site. VILLAGE OF BUFFALO G ROVE, ILLIN OI S Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 20 II Illinois Motor Municipal Fuel Parking Retirement Tax Lot Total Assets Cash and Equivalents $ 216,768 708,209 154,403 1,079,380 Receivables Property Taxes 1,569,405 1,569,405 Motor Fuel Tax 87,281 87,281 Due from Other Funds 857,043 857,043 Total Assets $ 1,786,173 1,652,533 154,403 3!593,109 Liabili ties Accounts Payable and Accrued Liabilities $ 70,452 91,210 8,287 169,949 Deferred Property Taxes 1,569,405 I 569 405 Total Liabilities 1,639,857 91,210 8,287 1,739,354 Fund Balances Restricted 146,316 1,561,323 1,707,639 Assigned 146 116 146,116 Total Fund ·Balances 146!316 1,561,323 146,1 16 1,853 ,755 Total Liabilities and Fund Balances $ 1!786!173 1,652,533 154,403 3,593!109 73 VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31 , 2011 Illinois Motor Mun icipal Fuel Parking Retirement Tax Lot Total Revenues Charges for Services $ 159,222 159,222 Intergovernmental 1,060,719 1,060,719 Property Taxes 1,567,758 1,567,758 Investment Income 227 227 Miscellaneous 187,582 187,582 Total Revenues 1!567,758 1,248,528 159,222 2,975 ,508 Expenditures General Government 467,750 158,429 626,179 Public Safety 380,355 380,355 Public Works 621 ,740 1,259,292 1,881 ,032 Total Expenditures 1,469,844 1!259,292 158,429 2!887!565 Excess (Deficiency) of Revenues over Expenditures 97,914 (10,764) 793 87,943 Other Financing Sources Transfers In 615,284 615 ,284 Net Change in Fund Balances 97,9 14 604,520 793 703,227 Fund Balances Beginning (as Restated) 48,402 956,803 145,323 1,150!528 Ending $ 146,316 1,561!323 146,116 1,853!755 74 V ILL AGE OF BUF FALO G RO VE, ILLI NOI S Illinois Municipal Retirement Fund Schedu le of Revenues, Expenditures and Changes in Fund Balances-Budget and Act ua l Year Ended December 31, 20 I I Revenues Property Taxes Investment Income Total Revenues Expenditu res General Government Public Safety Public Works Total Expenditures Net Change in Fun d Balance Fund Balance Beg inn in g (as Restated) Endi ng 75 Original/Final Final App ropriations Budget Actual $ 1,546,972 1,546,972 1,567,758 100 1,546,972 1,547,072 1,567,758 5 17,190 494,283 467,750 420,557 401 ,930 380,355 687,456 657,008 621 740 11625,203 11553 ,22 1 114691844 $ {78,231l {6,149} 97,914 48 402 14613 16 V ILLAGE OF BUFFALO G ROVE, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 3 1, 2011 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues Expenditures Public Works Excess (Deficiency) of Revenues over Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance Beginning Ending 76 Orig inal/Final Final Appropriations Budget Actual $ 1,105,792 1,060,719 50 227 187 582 187,582 1,293,424 1,248,528 2,400,000 1,750!000 11259,292 (2,400,000) (456,576) (10,764) 548,3 17 615 284 $ (214001000) 91,741 604,520 956,803 1,561!323 VILLAGE OF BUFFALO GROVE, ILLINOIS Parking Lot Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31 2011 Revenues Charges for Services Expenditures General Government Ne t Change in Fund Balance Fund Balance Beginning Ending 77 OriginaVFinal Final Appropriations Budset Actual $ 147,100 159,222 222,672 1832221 158,429 $ (222 2672} {36, 121} 793 1452323 146 116 NONMAJOR DEBT SERVICE FUND Facilities Development Fund -to accumulate monies for payment of the $1,000,000, 2.65%-4.1% General Corporate Purpose Bond Series 2002B; $2,600,000, 2.25%-3.25% General Corporate Purpose Bond Series of 2003; $5,160,000, 2.0%-4.0% General Corporate Purpose Refunding Bond Series of 2010A; and $2,600,000, 2.5%-3.85% General Corporate Purpose Bond Series of 2010B. Amounts being accumulated are financed by a specific annual property tax levy and by transfers from the General Fund. V ILLAGE OF BUFFALO GROVE, ILLINOI S Facilities Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31, 2011 Revenues Property Taxes Investment Income Total Revenues Expenditures Principal Interest and Fiscal Charges Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance Beginning (as Restated) Ending 78 Original/Final Final Appropriations Budget Actual $ 1,300,833 1,112,869 1,118,6 12 300 1,300!833 1!113!169 1,118,6 12 1,076,100 1,055,000 1,055,000 251,770 248,633 248 539 1!327!870 1,303 ,633 1,303 ,539 (27,037) (190,464) (184,927) 200 000 200,000 $ ~27!037} 9,536 15,073 (2!530} 12,543 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 , 20 II Street Facilities Maintenance DeveloEment Total Assets Cash and Equivalents $ 162,677 552,441 715,118 Liabilities Accounts Payable and Accrued Liabilities $ 49,675 354,360 404,035 Due to Other Funds 347,208 347,208 Total Liabilities 396,883 354 360 751,243 Fund Balances Restricted 198,081 198,081 Unassigned ~234,2062 ~234 ,206} Total Fund Balance ~2342206} 198,081 ~362 125} Total Liabilities and Fund Balances $ 162,677 552 441 715 ,118 79 VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31 , 20 1 1 Revenues Investment Income Miscell aneous Total Revenues /' Expenditures Capital Projects Excess (Deficiency) of Revenues over Expenditures Other Financ in g Sources Transfers In Net Change in Fund Balances Fund Balances Beginning Ending 80 Street Facilities Maintenance DeveloEment Total $ 196 63 259 158285 17 559 175,844 158,481 17,622 176,103 1!134!372 376,552 1,510,924 (975,891) (358,930) (1,334,821) 371,070 371 070 (975,891) 12,140 (963,751) 741,685 185,941 927,626 $ {234!2062 198,081 {36,1252 VILLAGE OF BUFFALO GROVE, ILLINOIS Street Maintenance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31, 20 11 Revenues Investment Income Miscellaneous Total Revenues Expenditures Capital Projects Net Change in Fund Balance Fund Balance Beginning Ending Original/Final Appropriations $ 1,595,000 $ (1,595,000) 81 Final Budget Actual 400 196 245,508 158 285 245,908 158,481 1,025,707 1,134,372 {779,7992 (975,891) 741,685 {2342206} V ILLAGE OF B UFFA LO G ROVE, ILLI NOIS Facilities Development Fund Schedule of Rev~nues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 3 1, 20 11 Revenues Investment Income Miscellaneous Total Revenues Expenditures Capital Projects Excess (Deficiency) of Revenues over Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance Beginning Ending 82 Original/Final Final Appropriations Budget Actual $ 63 490,469 17,559 490,469 17,622 1,220,000 875,212 376,552 (1,220,000) (384,743) (358,930) 384,743 371,070 $ (1 ,220,000) 12,140 185z941 198 081 ENTERPRISE FUNDS Major Funds Waterworks and Sewerage Fund -to account for the provision of water and sewer services to all residential and commercial/industrial customers of the Village. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, related debt service and billing and collection. Arboretum Golf Course Fund -to 'account for the operation of the Arboretum Golf Course. All activities necessary to provide the service are accounted for in this fund including but not limited to, administration, operations, maintenance and related debt service. Nonmajor Funds Buffalo Grove Golf Course Fund -to account for the operation of the Buffalo Grove Golf Course. All activities necessary to provide the service are accounted for in this fund including, but not limited to, administration, operations, maintenance and related debt service. Refuse Service Fund -to account for the provision of refuse disposal services to all customers of the Village. All activities necessary to provide such services are accounted for in this fund. VILLAGE OF BUFFALO GROVE, ILLINOIS Waterworks and Sewerage Fund (Major Fund) Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses and Transfers-Budget and Actual (Budgetary Basis) Year Ended December 31 2011 · 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 Income (Loss) (Budgetary Basis) Nonoperating Revenues Investment income Transfers Transfers Out Net Loss (Budgetary Basis) 83 Original/Final Appropriations $ 21,654,908 (5,686,200) 15,968,708 (15,968 ,708) (885,000) $ (16,853,708) Final Budget Actual 9 ,210,438 7,743 ,700 43 000 38 ,300 9,253,438 7,782,000 15,586,974 8,670,769 (3,458,500) (954,977) 12,128,474 7,715,792 (2 ,875,036) 66,208 51,020 41 ,571 (885,000) (905,000) (3,709,016) (797,221) VILLAGE OF BUFFA LO GROVE, ILLINOIS Arboretum Golf Course Fund (Major Fund) Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses and Transfers-Budget and Actual (B udgetary Basis) Year Ended December 31, 2011 Operating Revenues Daily Greens Fees and Memberships Merchandise Sales Cart, Club and Other Rentals M iscell aneous Total Operating Revenues Operat ing Expenses Excluding D epreciation Golf Operations Cost of Sales -Pro Shop Operating Loss (Budgetary Basis) Nonoperating Revenues Interest Income Transfers Transfers· In Net Loss (Budgetary Basis) 84 Original/F inal Appropriations $ 1,310,266 54,000 1,364,266 (1,364,266) $ (1 ,364,266) Final Budget 759,000 64,800 248,350 40 500 1 112,650 1,208,047 45,000 1,253,047 (140,397) 250 36 004 (104,143) Actual 797,638 50,456 231,516 17 296 1,096 906 1,224,886 51 476 1,276,362 (179,456) 168,000 (179,456) V ILLA G E OF BUFFALO G ROVE, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Net Assets December 3 1, 20 II Buffalo Grove Refuse Golf Course Service Total Assets C urrent Cash and Equivalents $ 2 ,066 193,215 195 ,281 Receivables 86,350 86,350 Pro Shop Inventory 21,991 21 991 Total Current Assets 24,057 279,565 303 622 Noncurrent Capital Assets, Net of Accumulated Depreciation Land 978,776 978,776 Buildings 281,320 281 320 Total Noncurrent Assets 1 260,096 1,260,096 Total Assets 1,284!153 279,565 1,563 ,718 Liabi lit ies Current Accounts Payable and Accrued Liabilities 45 340 45 ,340 Net Assets Investment in Capital Assets 1,260,096 1,260,096 Unrestricted {21,283~ 279!565 258,282 Total Net Assets $ 1!238,813 279,565 1!5 18!378 85 VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Enterprise Funds Combinin g Statement of Revenues, Expenses and Changes in Net Assets Year Ended December 3 I 2011 Buffalo Grove Refuse Golf Course Service Total Operating Revenues Daily Greens Fees and Memberships $ 732,595 732,595 Merchandise Sales 71,536 71,536 Cart, Club and Other Rentals 205,769 205,769 Driving Range Fees 51,393 51,393 SWANCC User Fees 1,036,872 1,036,872 Miscell aneous 17,219 17,219 Total Operating Revenues 11078,512 1,036,872 2,115,384 Operating Expenses Excluding Depreciation Golf Operations 1,206,8~5 1,206,865 Cost of Sales -Pro Shop 53,245 53 ,245 Refuse Operations 935,365 935 ,365 Total Operat ing Expenses Excluding Depreciation 1 ,260,110 9351365 211951475 Operating Income (Loss) before Depreciation (181,598) 101,507 (80,091) Depreciation 32 784 32,784 Operating Income (Loss) (214,382) 101,507 (112,875) Nonoperating Revenues Interest Income, Net of Related Expenses {471} {471} Income (Loss) before Transfers (214,853) 101,507 (113,346) Transfers Transfers In 184,000 184 000 Change in Net Assets (30,853) 101 ,507 70,654 Net Assets Beginning 1,269,666 178,058 1 447,724 Ending $ 11238,813 2791565 1 !518!378 86 V ILLAGE OF BUFFALO GROVE, ILLIN OI S Nonmajor Enterprise Funds Combining Statement of Cash Flows Year Ended December 31 2011 Buffalo Grove Refuse Golf Course Service Total Cash Flows from Operating Activities Cash Received for Golf Activities $ 1,078,512 1,078,5 12 Cash Received for Refuse Services 1,036,697 1,036,697 Payments to Employees (754,766) (754,766) Payments to Suppliers {505,7612 {935,3652 {I ,44 I ,1262 {I 82 20152 101!332 {80!6832 Cash Flows from Noncapital Financing Activities Transfers In 184,000 184,000 Change in Due to/from Other Funds, Net 231 231 184,231 184,231 Cash Flows from Investing Activities Interest Received {4712 {4712 Net Increase in Cash and Cash Equivalents 1,745 101,332 103,077 Cash and Cash Equivalents Beginning of Year 321 91,883 92 204 End of Year $ 2,066 193 2215 195,281 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) $ {214,3822 101!507 {112,8752 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation 32,784 32,784 Change in Assets and Liabilities Inventory 1,422 1,422 Receivables (175) (I 75) Accounts Payable and Accrued Liabilities {1 28392 {1,839} Total Adjustments 32,367 {175} 322192 Net Cash Provided (Used) by Operating Activities $ {182,015} 101!332 {80,6832 87 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, 201 I Operating Revenues Daily Greens Fees and Memberships Merchandise Sales Cart, Club and Other Rentals Driv ing Range Fees Miscellaneous Total Operating Revenues Operating Expenses Exclud ing Depreciation Golf Operations Cost of Sales -Pro Shop Operating Income (Loss) (Budgetary Basis) Nonoperating Revenues Interest Income, Net of Related Expenses Transfers Transfers In Transfers Out Ne t Income (Loss) (B udgetary Basis) 88 Original/Final Appropriations $ 1,349,473 60,000 1,409,473 {1 ,409,473) (40,000) $ (1,449,473) Final Budget 890,000 82,500 268,000 72,000 16,300 1,328,800 1,243,296 50 000 1,293,296 35,504 500 (36,004) Actual 732,595 71,536 205 ,769 51,393 17,219 1,078,512 1,206,865 53 245 1,260,110 (181 ,598) (47 1) 184,000 1,93 1 V ILLAGE 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, 20 II Original/Final Appropriations Operating Revenues SWANCC User Fees $ Operating Expenses Refuse Operations 1,250,000 Net Income (Loss) (Budgetary Basis) $ {1,2501000} 89 Final Budget Actual 1,046,730 1,036,872 961,691 935,365 85,039 101,507 TRUST AND AGENCY FUNDS Pension Trust Police Pension Fund -to account for the accumulation of resources to be used for disability and retirement annuity payments to uniformed police department personnel at appropriate amounts and times in the future. Resources are contributed by employees along with interest income and by property tax levies. Firefighters' Pension Fund -to account for the accumulation of resources to be used for disability and retirement annuity payments to uniformed fire department personnel at appropriate amounts and times in the future. Resources are contributed by employees along with interest income and by property tax levies. Agency School and Park District Donations Fund -to account for monies deposited by developers for local schools and park districts. These funds are deposited with the Village and later remitted to the applicable school or park district. / V ILLAGE OF BUFFALO GROVE, ILLINOIS· Fiduciary Funds Combining Statement of Plan Net Assets -Pension Trust Funds December 3 1, 2011 · Pol ice Fi refighters' Pension Pension Total Assets Cash and Equivalents $ 7,331,908 1,426,932 8,758,840 Investments Certificates of Deposit 9,09 1,863 9,091,863 U.S. Government and Agency Obligations 18,302,682 6,485,269 24,787,951 Open-end Mutual Funds 17,078,917 16,975,200 34 ,054,117 Receivables Pension Contributions 1,769,840 1,519,078 3,288,918 Interest 8,167 77 617 85 784 Total Assets 44,491,5 14 35,575 ,959 80,067,473 Liabilities Accounts Payable 6,839 3,170 10 009 Net Assets Held in Trust for Pen sion Benefits $ 4414841675 35,572,789 80,057,464 90 V ILLAGE OF BUFFALO GROVE, ILLINOIS Fiduciary Funds Combining Statement of Changes in Plan Net Assets -Pension Trust Funds Year Ended December 3 1 2011 Additions Contributions Employer Participants Investment Income 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 Held in Trust for Pension Benefits Beginning Ending 91 Police Pension $ 2 ,201,593 812,363 3,013 ,956 1,914,00 1 96,902 {126,4312 1,884,472 4,898,428 18,628 128222308 1,840,936 3,057,492 41,427,183 $ 44,484!675 Firefighters Pension Total 2,033,998 4,235,591 505229 1 1,317,654 225392289 5,553,245 178,276 . . 2,092,277 446,594 543,496 {79!0942 {20525252 545 ,776 2!430,248 320852065 7,983,493 45,192 63,820 965,939 2,788 ,247 120112131 2i8522067 2,073,934 5;131,426 33,4982855 7429262038 35,572!789 8020571464 V ILLAGE O F BUFFALO GROVE, ILLINOIS Police Pension Fund Schedule of Changes in Plan Net Assets-Budget and Actual Year Ended December 31, 2011 Additions Contr.ibutions Emp loyer Participants Investment Income Net Appreciation in Fair Value of Investments · Interest Income Less: Investment Expense Total Additions Deductions Administration Pension Benefits and Refunds Total Deduction? Change in Net Assets. Net Assets Held in Trust fo r Pension Benefits Beginning Ending 92 Original/Final ·Appropriations $ 110,000 165!000 275,000 $ {275,0002 Final Budget 2,134,544 618,429 2 752 973 1,294,579 13,225 {100,0001 I 207 804 3,960 777 13,000 1,537,460 1,550,460 2,410,317 Actual 2,201,593 812,363 3,013 956 1,9 14,001 96,902 {126,4312 1,884 472 4 898 428 18,628 1,822,308 I 840,936 3,057,492 41,427,183 44,484,675 . VILLAGE OF BUFFALO GROVE, ILLINOIS Firefighters' Pension Fund Schedule of Changes in Plan Net Assets-Budget and Actual Year Ended December 31 2011 Additions Contributions Employer Partic ipants Investment Income 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 Held in Trust for Pension Benefits Beginning Ending OriginaVFinal. Appropriations $ 100,000 675,000 775,000 $ {775,000} 93 Final Budget Actual 1,960,467 2,033,998 528,748 505 291 2 489 215 2,539 289 906,000 178,276 150,700 446,594. {501000} {79 1094.} 1,006,700 545,776 . 3 495 9 15 3 085 065 42,000 45,192 763,315 965,939 805,315 1 0ll,13 1 2,690!600 2,073,93 4 33,498,855 35,5721789 V ILLAGE OF BUFFALO GROVE, IL LI NOIS Agency Fund School and Park Donations Sched ul e of C hanges in Fiduciary Net Assets Year Ended December 31, 2011 Assets Cash and Cash Equ ivalents Liabilities Due to Other Governments Balances January I $ 735!628 $ 735;628 94 Balances A dditi o ns Deductions December 31 93!726 243 2967 585!3 87 93!726 243 2967 · 585,3 87 CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS VILLAGE O F B UFFAL O GROVE, ILLINOIS Capital Assets Used in the Operation of Government Funds Schedule of Capital Assets by Source Year Ended December 31 20 I I Assets Governmental Funds Capital Assets Land Construction in Progress Buildings Land Improvements Equipment and Vehicles · Streets Storm Sewers Total Governmental Funds Cap ital Assets Investment in Governmental Funds Capital Assets by Source Capital Projects Current Revenues Debt Issuance Contri butions Total Governmental Funds Capital Assets 95 $ 35,963,844 379,588 22,034,535 3,104,714 12,762,075 19,040,719 37,665,289 $ 130,950,764 $ 7,651,824 6,609,063 . 23,041,544 93,648,333 $ 130,950,764 VILLAGE OF BUFFALO GROVE , ILLINOIS Capital Assets Used in the Operation of Government Funds Schedule by Function and Activity Year Ended December 31 , 20 I I General Gover:nment Publ ic Safety Public Works Land $ 6,254,297 2917091547 $ 35,963 1844 96 Construct ion Equipment in Progress Buildings and Vehicles 247,250 7,385,878 1,461,799 9,845,494 6,738,824 1321338 4 1803,163 4,561 1452 3791588 22,03 41535 1217621075 Land St~mn S treets Improvements Sewers Total 15 ,349,224 16,584,318 19,040,719 3,104,714 37,665,289 99,0 17,222 19,040,719 3,104,7 14 37,665,289' 130,950,764 97 V ILLAG E OF BUFFALO GROVE, ILLI NOIS Capi tal Assets Used in the Operation of Government Funds Schedule of Changes by Function and Acti vity Year Ended December 3 1 , 20 1 I General Government Public Safety Public Works Balances January I , 2011 $ 14,796,903 16,700,7 12 9825971298 $ i 30,09429 I 3 98 Balances D ecember 31, Addition-s Deductions 2011 552,321 15,349,224 120,410 236,804 16,584 ,318 6851814 265 2890 99,0172222 1,3 58,545 502!694 13019501764 STATISTICAL SECTION (UNAUDITED) The information in this section differs from financial statements in that it usually covers a period of time more than two fiscal years and may contain data not related to accounting. The purpose of the financial statements is, among other things, to show that legal provisions have been complied with and that all funds have been properly accounted for. Statistical tables reflect social and economic data, financial trends and the fiscal capacity of the Village. VILLAGE O F BUFFALO GROVE, ILLINOIS Statistical Section This portion of the Village of Buffa lo Grove's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the infonnation in the financial statements, note disclosures, and required supplementary information s ays about the Village's overall economic condition . · Cont e nts Financial Trends These schedul es contain trend information to he lp the reader understand how the Village's financ ial performance and well-being have changed over time. · Revenue Capacit y These schedules contain information to help the reader assess th e factors affecting the Village's ability to generate its property and sales taxes. Debt Cap acity 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 additiona l debt. Demographic a nd Economic Information These schedules offer d emographic and economic indicators to help the reader understand the enviro nm ent within which the Village's financial activities take place and to help make comparisons over time an d 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: 99-108 109-113 114-118 119-122 123-130 Unless otherwise noted, the information in these schedules is derived from the Village's Compr ehensive Annual Financial Reports for the relevant year. The Village implemented GASB Statement 34 in 2004; schedules presenting governm ent-wide information include information beginning in that year. FINANCIAL TRENDS VILLAGE OF BUFFALO GROVE, ILLINOIS Net Assets by Component Last Nine Fiscal Years (See Following Page) VILLAGE OF BUFFAW GROVE, ILLINOIS I Net Assets by Component Last Nine Fi scal Years Fiscal Year 2011 2010 2009 2008 Governmental Activities Invested in Capital Assets, Net of Related Debt $ 53,362,147 53,742,519 54,563,3 85 53,55 1,265 Restricted 1,918,263 956,803 140,712 80,438 Unrestricted 13,429,876 15,738,272 16,590,052 23,259,339 Total Governmental Activities Net Assets 68 ,710,286 70 ,437,594 7 1,294,149 76,891,042 Business-type Activities Invested in Capital Assets, Net of Related Debt $ 37,807,146 38,410,966 39,808,889 41,374,269 Restricted U nrestri~ted 12,9 89,124 14,644,341 15 ,0 11 ,209 17,003,3 16 Total Business-type Activities Net Assets 50,796,270 53 ,05 5,307 54,820,098 58,377,585 Primary Government Invested in Capital Assets, Net of Related Debt $ 91 ,169,293 92,153 ,485 94,372,274 94,925,534 Restricted 1,918,263 956,803 140,712 80,438 Unrestricted 26,419,000 30,3 82,613 31,601,261 40,262,655 Total Primary Government Net Assets .119,506,556 123,492,901 126,114,247 135 ,268,627 *Transitional fiscal year May I , 2007 through December 31, 2007. Data Source Audited Financial Statements 99 2007* 2007 2006 2005 2004 53,702,484 53,726,929 53,188,591 49,264,115 48,009,890 33,167 1,294,897 1,425,988 4,955,378 4,368,460 27,184,985 3525122486 3727862827 34,551,091 34,708,597 80,920,636 90,534) 12 92,4012406 88,770,584 87,086,947 42,667,740 42,667,526 43,646,133 44,123,414 45,491,776 17,509,194 18,553,703 1823002838 18,375,098 17,690,967 60,1762934 61,221 ,229 61,946,971 6224982512 63,1822743 96,370,224 96,394,455 96,834,724 93,387,529 93,501,666 33,167 1,294,897 1,425,988 4,955,378 4,368,460 4426942i79 542066,189 56,087,665 52,926,189 52,3992564 141 20972570 1512755,541 154,348,3 77 151,2692096 1 50!269!690 . 100 VILLAGE OF BUFFALO GROVE, ILLINOIS Changes in Net Assets Last Nine Fiscal Years Fiscal Year 2011 2010 2009 2008 Expenses Governmental Activities General Government 5,010,274 4,769,874 6,182,475 5,705,497 Public Safety 22,657,643 22,312,910 22,753,590 21,115,737 Publ ic Works 11 ,106,433 11,081,374 10,421,659 13,222,026 Interest 248,539 1941655 334,142 379,501 Total Governmental Activities Expenses 39,022,889 38,358,813 39,6911866 40,422,761 Business-type Activities Water and Sewer 8,753,149 9,865,981 9,519,169 8,684,651 Refuse Service 935,365 942,757 944,392 1,017,164 Golf Courses 310572912 3,043,367 311181647 3,423,903 Total Business-type Activities Expenses 12,746,426 13 ,852,105 1\582,208 13,125,718 Total Primary Government Expenses 51,769,315 52,210,918 53,274,074 5325481479 Program Revenues Governmental Activities Charges for Services General Government $ 1,240,547 1,195,928 977,464 1,211 ,188 Public Safety 1,404,308 1,419,761 1,563,236 1,514,666 Public Works 86,421 71,606 50,709 94,670 Operating Grants and Contributions 1,230,387 1,253,103 1,349,044 1,307,895 Capital Grants and Contributions Total Governmental Activities Program Revenues 3,961,663 3,940,398 32940,453 4,128,419 Business-type Activities Charges for Services Water and Sewer 7,782,000 9,091,520 8,008,360 7,538,534 Refuse Service 1,036,872 1,041,66 1 1,004,431 923,207 Golf Courses 2,175,418 2,088,106 2,320,247 2,356,962 Operating Grants and Contributions Capital Grants and Contributions 133,599 Total Business-type Activities Program Revenues 10 19941290 12,221 2287 11 ,333,038 102952,302 Total Primary Government Program Revenues 14,955,953 16,161 ,685 15 ,273,49 1 15,0801721 Net (Expense) Revenue Governmental Activities (35,061,226) (34,4 18 ,415) (35, 751 ,413) (36,294,342) Business-type Activities (1,752,136) (I ,630,8 18) (21249, 170) (2,173,416) Total Primary Government Net Expense (36,813,362) (361049 ,233) (382000,583) (38,4672758) *Transitional fiscal year May 1, 2007 through December 31, 2007. 101 2007* 2007 2006 2005 2004 4,019 ,032 4,6 86 ,330 4,582,741 4,70 1,408 4 ,749,920 15,324,061 18,95 1,546 18,137,721 16,822,265 16,396,186 8,232,6 85 12,479,424 11,441,440 9,523,240 9,550,018 2 16,379 529,858 1,2 17,883 994,708 877,924 27,792,157 36,647,158 35,379,785 32,04 1,62 1 31,574,048 5,165,70 1 7 ,256,63 9 7,168,405 6,780,153 6,843 ,943 777,7 16 1,024 ,248 956,915 97 1,980 936,573 2,637,072 3,102,770 3,333,644 3 ,10 1,134 3,236,932 8,580,489 11,383,657 11,458,964 10,853 ,267 11 ,0 17,448 36,372,646 48,030,8 15 46,838,749 42,894,888 42,591,496 1,139,242 1,880,714 2,048,850 1,683 ,5 85 1,802,120 1,050,920 1,525,943 1,553,949 1,476,845 "1,358,439 94,670 192,193 950,383 1,532,557 1,2 18,020 3,235,2 15 4,939,2 14 3,602,799 3,160,430 4 ,570,772 4,799,193 6,694,05 1 7,688,143 6,279,172 6,322,04 5 704,84 1 99 1,140 990,11 3 975,290 957,435 2,14 1,860 2,323,9 19 2,567,759 2,637,71 7 2,592,370 1,444,395 1,915,746 I, I 06,103 4 97,875 450,000 1,867,859 760,726 2,36 1,256 8,143,769 10,459,110 14,558,269 12 ,568,65 1 13 ,339,209 11 ,378,984 15 ,398,324 18,16 1,068 15,729,081 17,909,981 (24,556,942) (3 1 ,707,944) (3 I , 776,986) (28,8 81 , 191) (27,003,276) (436,720) (924 ,5 47) 3,099,305 1,715 ,3 84 2,321,76 1 (2 4,993,662) (32,632,49 1) (28,677 ,68 1) (27, 165 ,807) (24,68 1 ,5 15) (Co nt.) 102 V ILLAGE OF BUFFALO G ROVE, ILLINO IS Changes in Net Assets (Cont.) Last N ine Fiscal Years Fiscal Year 2011 2010 2009 2008 General Revenues and Other Changes iri Net Assets Governmental Activities Taxes Property $ 14,458,248 13,657,589 12,504 ,508 12,058,815 Sales and Home Rule 6,984,134 7,309,800 7,196,969 8,436,647 Income and Use 3,714,864 4 ,165 ,248 3,601,619 4,646,776 Telecommunications 2,134,462 2,183,190 2,345,249 2,4 17,496 Utility 2,567,091 2,393,340 Property Transfer 629,376 545,515 670,762 590,596 Other 1,044,164 1,0 17,6 12 1,006,249 1,076,929 Investment Income 133,059 250,290 490,881 810,982 Miscellaneous 1,495,155 1,822,276 1,403 ,283 2,081,112 Transfers 553,000 217,000 935,000 80,230 Proceeds from Insurance Pool Total Governmental Activities 3317131553 33,561,860 3011541520 3211991583 Business-type Activities Property Investment Earn in gs 41,100 80,894 (374,632) 267,263 Miscellaneous 4,999 2,133 1,315 187,034 Transfers {553,0002 {217,0002 {935 ,0002 {8012302 Total Business-type Activities {506,9012 {133 1973} {I 13081317} 374,067 Total Primary Government $ 3312061652 33 1427,887 28,846,203 32,573,650 Change in Net Assets Governmental Activities $ (1,3 47,673) (856,555) (5,596,893) (4,094,759) Business-type Activities {2,259,0372 {1 1764 179'2 {3,55714872 {1 1799,3 492 Total Primary Government Change in Net Assets $ {3,606,710} {2 1621 1346} {9, 154,380} {5,894, I 08} Data Source Audited Financial Statements 103 2007* 2007 2006 2005 2004 706,749 10,2 14,926 11 ,622,088 10,868,824 11 ,788,975 5,741,981 8,6 19,267 8,800,041 7,960,163 6,349,520 2,725,204 4,280 ,237 3,855,616 3,433,471 3,001,889 1,967,348 2,436,233 2,230,092 2,442,641 2,624,965 600,379 980,213 1,3 46,946 1,212,292 1,253,906 247,827 273 ,33 5 293,990 291 ,839 253,516 958,71 5 1,636,589 1,109,664 599,072 430,943 1,254,948 855,100 1,126,625 1,058,732 751 ,134 899,950 544,950 784,625 414,760 (203,740) 925 867 15,103,10 1 29,840,850 32,095,554 28,281,794 26,251,108 166,007 82,989 122,832 114,998 292,375 445,766 363,044 175 ,347 122,106 131 ,982 (899,950) (544,950) (784,625) (414,760) 203,740 (607,575) 198,805 (338,592) (1 16,581) 440,844 14,495 ,526 30,039,655 3 1,756,962 28,165 ,213 26,691,952 (9,453,84 1) (1,867,094 ) 318,568 (599,397) (752,168) (I ,044 ,295) (725,74 2) 2,760,713 1,598,803 2,762,605 (I 0,498, 136) (2,592,836) 3,079,28 1 999,406 2,0 10,437 104 VILLAGE OF BUFFALO GROVE, ILLINOIS Fund Balances of Governmental Funds Last Ten Fiscal Years . Fisca l Year 2011 2010 2009 2008 2007* General Fund Nonspendable $ 1,031,936 Restricted Committed 7,948,344 Assigned Unassigned 9,871 ;895 Reserved 1,138,273 1,248,428 1,536,571 1,846,137 Unreserved 17!763!849 1813071270 22!4441819 2715561199 Total General Fund 1828522175 1829022122 1925552698 23.19812390 2914021336 All Other Governmental Funds Nonspendable Restricted 1 ,918,26~ Committed Assigned 146,116 Unassigned (234,206) Reserved 20,271 (12,970) . 33,167 486,946 Unreserved, Reported In Specjal Revenue Funds 2 ,124,937 1,252,015 1,239,501 1,942,258 Capital Projects Funds 927 626 . 903 315 1 911 178 2 436 815 Total All Other Governmental Funds 118301173 320721834 211421360 311831846 418661019 Total Governmental Funds $ 20,682,348 211974,956 21,698,058 27,1651236 341268,355 *Transitional fiscal year May I, 2007 through December 31, 2007. Data Source Audited Financial Statements 105 2007 1,846,137 27,556,199 2006 1,787,884 27,252,6,60 2005 1,524,130 23,935 ,055 2004 1,339,393 23,556,556 . 2003 1,155,677 22,975 ,100 29,402,336 29,040,544 25,459,185 24,895 ,949 . 24,130,777 486,946 499,743 4,543,605 4,3 11 ,770 4,238,926 1,942,258 1,813 ,406 1,496,628 953,672 988,142 2,436,815 3,888,047 3,928,552 3,6 18,540 3,732,973 4,866,019 6,201 ,196 9,968,785 8,883,982 8,960,041 34,268,355 35!24 1,740 35 ,427,970 33 ,7791931 33 ,090,818 106 VILLAGE OF BUFFALO GROVE, ILLI NOI S Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2011 2010 2009 2008 2007* Revenues Property Taxes $ 14,458,248 13,657,589 12,504,508 12,0 58,815 5,797,846 Other Taxes 17,074,091 17,6 14,705 14,806,744 i7,168,444 11 ,282,739 Licenses and Permits 280,139 278,164 276,857 278,965 245,148 Intergovernmental 1,060,719 1,096,794 1,106,234 1,134,407 815 ,669 Fines and Forfeitures 1,404,308 1,419,761 1,559,190 1,514,666 1,050,918 Charges for Services 1,216,497 1,145 ,679 970,537 1,200,381 1,028,810 Investment Income 133,196 249,396 490,881 790,244 911,444 Miscellaneous 124422617 127202640 124442610 2 2081 2112 12254,948 Total Revenues 3720692815 37,182,728 33 ,1592561 36,227,034 . 22,387,522 Expenditures Current General Government 5,509,433 . 4,979,904 5,596,822 5,458,962 3,455,213 Public Safety 22,008,351 21,802,732 20,882,745 20,499,004 14,2 11 ,3 80 Public Works 8,256,079 8,704,005 10 ,337,090 10,792,931 7,225,387 Capital Outlays 1,510,924 3,157,156 1,245 ,9 40 1,2 86,175 502,701 Debt Service Principal 1,055,000 980,000 1,165,000 1,150,000 1,312,381 Interest 248,539 194,655 334,142 379,501 424,220 Other Charges 127,930 Total Expenditures 38,588,326 39,946,382 39,561,739 39,566,573 27,131,282 Excess (Deficiency) of Revenues over Expenditures {I 2518 25112 {2!763 26542 { 6,402, 1782 {3 ,339,5392 {4,743,7602 Other Financing Sources (Uses) Transfers In 1,891,354 2,153,190 2,909,382 4,121 ,451 3,064,166 Transfers Out {I ,338,354) (I ,936, 190) (1,974,382) (4,041 ,221) {2,164,216) Proceeds from Sales of Assets 52,538 103,565 Proceeds from Issuance of Debt 7,760,000 Premium on Issuance of Debt 178,229 Transfer to Escrow Agent {5,218,2422 Total Other Financing Sources (Uses) 605 2538 32040,552 935,000 80,230 899!950 Net Change in Fund Balance $ {912!9732 276!898 {5,46721782 {3 225923092 {3 2843 281 02 Debt Service as a Percentage of Noncapital Expenditures 3.50% 3.21% 3.93% 4.00% 6.52% *Transitional fiscal year May 1, 2007 through December 31, 2007. Data Source Audited Financial Statements 107 2007 2006 2005 2004 2003 10,402,764 11 ,245 ,966 11 ,7 15,601 12,463,170 9 ,874,681 16,589,285 16,526,685 15 ,340,405 13,483,796 13,207,726 825 ,69 1 836,279 860,838 764,834 1,724,062 1,253,3 19 3,11 0,490 2,283,034 1,2 18,020 1,222,699 1,525,943 1,553 ,949 I ,476,845 1,200,967 9 14,637 1,334,260 1,41 4,337 822,748 1,3 86,951 693,936 1,562,29 1 1,094,843 599,072 430,943 622,866 855 2101 121262625 I 205 8,732 902,824 20824 22 34,348,654 362909,174 34,15 7,275 31 ,851 ,505 28,469!029 4,955,659 4,276,374 4,326,708 4 ,044,058 6,43 1,336 18,185 ,545 17,52 1,978 16,390,15 6 16,4 11 ,2 19 15 ,931,648 9,319,23 1 8,011 ,07 1 7,189,290 6,783 ,338 3,047,952 1,945 ,05 3 2,285 ,510 750,020 1,498,844 6,065,692 1,234,765 6,020,700 3,362,8 14 3,521 ,160 3,167,250 476,736 1,440,436 905,008 998,046 1,220,546 36,116,989 3925562069 32,923,996 33,256,665 35 ,864,424 (I 2768 ,3 35) (22646,895) 1!233,279 (1,405!1 60) (7,395 ,395) 3,453 ,845 3,586,075 2,770,109 9,503,218 2,978,357 (2,658,895) (2,895,578) (2,355 ,349) (2,879,098) (2,468,2 13) 2 ,600,000 794!950 690!497 4 14 !760 6!6242120 321102144 (973 2385) (I ,956,398) 12648,039 5,218,960 ( 4 ,285,25 I) 5.01% 20.02% 13.26% 14 .23% 14 .72% 0 108 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 Levy Years Tax Total Levy Residential Commercial Industrial Other Assessed Year Pro12erty Pro12erty Pro12erty Pro12erty Value 2011 $1 ,327,130,857 331 ;907,554 4,660,688 832,266 1,664,531,365 * 2010 1,445,087,809 337 ,607~065 16,376,462 539,883 1,799,611,219 2009 1,504,629,708 351,499,013 17,047,821 646,171 1 ,896, 782,514 2008 I ,483,527,804 364,403,255 5,048,950 804,975 I ,881,094,419 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 I ,608,264, 793 2004 1,155,398,804 325,308,649 11,332,296 738,791 I ,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 *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 109 Estimated Estim ated Total Actual Actual Direct Taxable Taxable Tax Rate Value Value N/A 4,993,594,092 33.333% 0.800 5,398,833,657 33.333% 0.736 5,690,347,542 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 4,824,794,379 33.333% 0.642 1 4,478,335;620 33.333% 0.6539 4,180,255,152 33.333% 0.6448 3,958,116,804 33.333% 110 VILLAGE OF BUFFALO GROVE, ILLINOIS Property Tax Rates -Direct and Overlapping Governments Last Ten Levy Years Tax Levy Year Lake County (2) V illage of Buffalo Grove County, including Forest Preserve District Combined School Districts (District #96, District #125 and District #532) Buffalo Grove Park District Indian Trails Public Library District All Other Percentage Change-Year-to-Year Cook County Village of Buffalo Grove County, including Forest Preserve District Metropolitan Water Reclamation District of Greater Chicago Combined School Districts (District #21, District #2 14 and District #5 12) Buffalo Grove Park District Indian Trails Public Library D istrict A ll Other · Percentage Change -Year-to-Year Notes: 201 1 0.852 0 .755 6 .158 0.452 0.385 0.092 8.694. 9.33% N /A N/A NIA NIA NIA NIA N /A NIA NIA Comparative Tax Rates (Per $100 Assessed and Equalized Valuation) 2010 2009 2008 0 .797 0.750 0.665 0 .703 0.664 0.652 5.610 5.301 5.102 0.425 0.351 0 .370 0.315 0.301 0 .222 0.102 0.094 0.092 . 7 .952 7.46 1 7.103 6.58% 5 .04% 0.74% 0 .810 0.691 0 .670 0.474 0.464 0.466 0 .274 0.26 1 0 .252 5 .792 5 .103 5 .004 0.439 0.371 0 .376 0 .347 0.307 0 .308 0 .071 0.068 0 .067 8 .207 7.265 7.143 12.97% 1.71% -2.39% (I) Taxes levied on a calendar year basis for collection in the subsequent fiscal year. (2) Overlapping tax rates for Lake County represented only District #I 02 and Indian Trail Library District as the majority of Buffalo Grove is w ithin 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 T ax Extension Office Il l 2007 0 .649 0.645 5.066 0 .380 0.219 0 .092 7 .051 -4.96% 0 .729 0.499 0.263 5 .035 0.416 0 .297 0 .079 7.318 -8.98% Comparative Tax Rates (Per $100 Assessed and Eq ua lized Valuation) 2006 2005 2004 2003 2002 0.633 0.608 0.603 0.615 0.626 0.654 0 .664 0.684 0.715 0.734 5.318 5 .234 5.300 5.144 5.077 0.403 0.375 0.349 0.387 0.365 0 .3 17 0.223 0.325 0.265 0.267 0.094 0.093 0.120 0.101 0.105 7.419 7.197 7.381 7 .227 7.174 3.08% -2 .00% 2.13% 0.74% -0.17% 0 .73 1 0.726 0.785 0.807 0 .7 14 0.557 0 .607 0 .662 0.728 0.751 0 .284 0.315 0.347 0.361 0 .371 5 .613 5.434 5.359 5.867 5 .449 0.455 0.435 0.457 0.498 0.407 0.320 0 .312 0.323 0.335 0.304 0.080 0 .076 0.064 0.074 0.075 8.040 7 .905 7 .997 8.670 8.071 1.71% -1.1 5% -7.76% 7.42% 1.68% 112 VILLAGE OF BUFFALO GROVE, I LLINOIS Principal Property Taxpayers Current Fiscal Year and N ine Years Ago 2011 . 2002 · Percentage Percentage of Total of Total Village Taxable Taxable Equalized Equalized Assessed Assessed Assessed Assessed Tax~a~er Value Rank Valuation Valuation Rank Valuation Chevy Chase Business Park $ 32,419,958 I 1.95 % 13 ,030,188 3 0 .99% Hami lton Partners (I) 18,164,709 2 1.09 15,029,138 1.14 Remax Consumer Plastics, Inc. 13,732,947 3 0 .83 Millbrook 10,526,585 4 0 .63 Penobscot Management (3) 9,204,717 5 . 0.55 8,264,390 6 0.63 Rogers Center for Commerce (4) 8 ,994,528 6 0 .54 8,34Q ,994 5 0.63 Riverwalk South LLC (2) 8,388,778 7 :0.50 10,786,360 4 0.82 Am li at Windbrooke LP 6,427,630 8 0 .39 Aptakisic Creek Corporate Park LLC 6,394,414 '9 0.38 Inland Woodland LLC 6,078,177 10 0.37 Am li at Chevy Chase, LP 13 ,8 10,599 2 1.05 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 $ 120!3322443 7.23 % 9427892805 7 .20 % No te:·. 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. · · (I) Previously HP Riverwalk II, LLC (2) Previously Marack and Associates (3) Previously The Wh eatlands LLC (4) Previously American National Bank and Trust of Chicago Data Source Offices of the County Clerk of Cook and Lake Counties 113 VILLAGE OF BUFFALO GROVE, ILLI NOIS Property Tax Levies and Co ll ections Last Ten Fiscal Years (See Following Page) VI LLAGE OF B UFFALO G ROVE, ILLIN OIS Property Tax Levies and Collections Last Ten Fiscal Years Levy Tax Year Levied 2010 $ 10,911 ,629 2009 10,826,999 2008 9,648 ,296 2007 9,137,324 2006 8,389,127 2005 7,690,488 2004 7,068,040 2003 6,833,964 2002 6,496,642 2001 6,188,984 Lake Coun~ Collected With in the Fiscal Year After the Levy Percentage Amount of Levy 10,902,757 99.92% 10,8 18,398 99.92% 9,63 9,444 99 .91% 9,133,824 99 .96% 8,383,359 99.93% 7,692,967 100.00% 7,063,323 99.93% 6,833,112 99.99% 6,493,138 99.95% 6,19 1,0 84 100.00% No tes: Property is assessed at 33 1/3% of actual va lue. Cook Coun~ Collected Within the Fiscal Year After the Le~ Tax Percentage Levied Amount of Levy 3,280,083 3,203,676 97.67% 3,131,059 2,992,768 95.58% 2,88 2,493 2 ,902,223 100.00% 2,937,238 2,871,428 97.76% 2,572,578 2,538,174 98.66% 2,492,952 2,454,868 98.47% 2~516,966 2,465,488 97.95% 2,277,392 2,259,270 99.20% 2,010,4 10 1,991,316 99.05% 1,893,52.8 1,881,11 3 99.34% Property is assessed on the following basis: Cook County-Triennial; Lake County-Quadrennia l (minimum). Collections for prior tax years are immater ial. Data Source Office of the County C lerk 114 Village Total Percentage Co ll ected of Levy 14,106,433 99.40% 13,811,167 98.95% 12,54 1,667 100.00% 12,005 ,252 99.43% 10,921,533 99.63% 10,147,835 99.65% 9,528 ,811 99.41% 9,092,382 99.79% 8,484,454 99.73% 8,072,197 99.87% I 15 · VILLAGE OF BUFFALO GROVE, ILLINOI S Sales Tax Revenue and N um ber of Principal Payers Revenu e by Category Last Ten Calendar Years 2011 General Merchandise $ 18,5 14 Food 1,244,667 Drinking and Eating Places 921,617 Apparel 129,402 Fu rnitu re, Househo ld s and Radio 378,836 Lu mber, Building and Hardware 534,413 Automotive Filling Stations 853 ,864 Drugs an d Miscellaneous Retail 1,982,824 Agriculture an d All Other 1,193 ,620 Manufacturers 378,3 26 $ 7 ,636,083 Total Number o f Payers 1,286 Village Di rect Sales Tax Rate 1.00% Village Home Rul e tax Rate 1.00% Note: 2010 3,90 1 1,362,170 933,212 128 ,663 415 ,396 402,483 1,36 1,3 76 1,431,121 1,062,978 379!893 7,48 1!1 94 997 1.00% 1.00% Calendar Year 2009 2008 2007 4 ,637 5,819 3 ,793 1,357,3 78 1,415,835 1,3 71 ,195 941,804 906,628 874,3 07 11 2,95 1 104,376 ll 0,386 223,008 521,316 422,342 716 ,935 1,379,764 2,181 ,496 1,222,500 1,177,121 1,7 15,400 1,432,484 1,285 ,513 1,237,894 1,25 7 ,806 2 ,082,955 1,777,144 399,141 390,034 3382494 7,668 2644 9,269,36 1 10!032!451 975 1,002 1,196 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 o f the Cook and Lake County Clerks 116 Calendar Year 2006 2005 2004 2003 2002 1,346 1,662 4,6 14 1,340,177 1,360,403 1,256,33 1 1,206,548 1,238,333 924,738 932,646 833,941 630,398 559,474 67,072 100,045 81,888 47,529 48,015 530,825 534,243 456,248 455,215 405,114 3,326,323 3,666,077 3,279,174 2,388,782 2,2 14,964 1,5 81,217 1,459,577 1,266,367 1,15 1,643 1,148,487 1,206,917 1,088,992 929,343 829,97 1 786,327 1,755,277 1,744,041 1,25 8,957 . 1,127,987 1,333,021 438 1024 502 1410 4981294 182!256 132,869 11,17 1,916 11,390,096 9!865,157 8!0 20,329 718661604 I ,3 11 1,271 1,189 1,213 1,174 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 0.5 0% 0.50% 0.50% 11 7 V ILLAGE OF BU FFA LO GROVE, ILLINOIS Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years State of Village Illinois Fiscal Direct Sales Tax Year Rate Rate 2011 1.00% 6.50% 2010 1.00% 6.50% 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% *Transitional fiscal year May I, 2007 through December 31, 2007. Data Source Illinois Department of Revenue 118 DEBT CAPACITY VILLAGE OF BUFFAW GROVE, ILLINOIS Ratio of Outstanding Debt by Type Last Ten Years Ratio of Business-Type Total Governmental Activities Activities Outstanding T ax 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 CaEita{l ~ 12/31/2011 $ 7,200,000 7,200,000 0.43% 171.79 12/3 1/2010 8,255,000 8 ,255,000 0 .46% 198.93 12/3112009 6,575,000 6,575,000 0 .35% 156.62 12/3112008 7,740,000 7,740,000 0.41% 183.54 12/3 112007* 8,890,000 8,890,000 0.49% 209.47 4/3012007 10,202,381 174,768 10,377,149 0.62% 243 .80 4/3012006 11,437,146 345,003 11,782,149 0 .73% 274.96 4/30/2005 12,597,846 3,400,000 1,460,000 689,303 18,147,149 1.22% 420.12 4/3012004 13,530,660 4,150,000 3,140,000 1,034,647 21,855,307 1.57% 508.70 4/3012003 14,201,820 5,505,000 4,63 5,000 1,367,443 25,709,263 1.95% 596.50 *Transitional fiscal year May I, 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. (I) See the Schedule of Demograph ic and Economic Statistics for equalized assessed valuation of property and population data. Personal income information is not available. 11 9 VIL.LAGE OF BUFF ALO G ROVE, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Amounts Available General in Debt Fiscal Obligation Service Year Bonds Fund 201 1 $ 7,200,000 12,543 2010 8,255,000 (2,530) 2009 6,575,000 (12,970) 2008 7,740,000 33 ,167 2007 * 8,890,000 98,332 2007 10,202,381 486,946 2006 11 ,780,000 499,743 2005 12,597,846 2004 14,565,307 2003 15 ,565 ,000 Total 7 ,187 ,457 8,257,530 6 ,587,970 7,706,833 8,791 ,668 9 ,715,435 11 ,280,257 12,597,846 14,565,307 15,565,000 *Transitional fiscal year May 1, 2007 through December 31, 2007. Notes : Percentage of Estimated Actual Taxable Value of Property (l) 0.43% 0.46% 0.35% 0.41% 0.49% 0.58% 0.70% 0.84% 1.05% 1.18% Details of the V illage's outstanding debt can be found in the Notes to the Financial Statements. Per Capita 171 .49 199 .00 156 .93 182 .76 207.16 228.25 263.24 291.65 339.02 361.14 (1) See the Schedule of Assessed Value and estimated Actual Value of Taxable Property for property value data. 120 V ILLAGE OF BUFFALO GROVE, ILLINOIS Direct and Overlapping Governmental Activities Debt As of December 31 , 20 11 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 $ 32,658 ,355 17.70% 5,780,529 Ki ldeer Countryside Community Consolidated #96 2,555,000 40 .07% 1,023 ,789 Aptakisic-Tripp Community Consolidated #I 02 5,725,000 76.24% 4 ,364,740 Lincolnshire-Half Day District #103 . 3,035,000 11.88% 360 ,558 Adlai E. Stevenson H.S. District # 125 24,265,000 37.81% 9 ,174,597 Wheeling Township H.S. District #214 76 ,235,000 3.89% 2,965,542 Harper Community College #512 185,775,000 1.79% 3,325,373 Coll ege of Lake County #532 24 ,350 ,000 5.10% 1,241,850 Total School Districts 354 ,598,355 28,236,976 Other Than School Districts Lake County 84 ,330,000 4.84% 4,081,572 Lake County Forest Preserve 295 ,270,000 4.84% 14,291 ,068 Cook County 3,709,260,000 0.24% 8,902,224 Cook County Forest Preserve 94,885,000 0.24% 227,724 Metropol itan Water Reclamation District 2,300,335 ,115 0.25% 5,750,838 Buffalo Grove Park District 16,145 ,000 95 .19% 15,368,426 Wheeling Park District 12,180,000 . 6.21% 756,378 Total Other Than School Districts 6,512,405,115 49,378,229 Total Overlapping Debt 6,867,003 ,470 77,615,205 Total V illage of Buffalo Grove Direct Debt 7,200,000 100.00% 7,200,000 Total Direct and Overlapping Debt $ 6,874,203,470 84 ,815,205 *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 ofthe Village of Buffalo Grove. This process recognizes that, when consider ing 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. 121 VILLAGE OF BUFFALO GROVE, ILLINOIS Schedule of Legal Debt Margin December 31, 201 I Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as set by the General Assembly. 122 DEMOGRAPHIC AND ECONOMIC INFORMATION VI LLAGE OF BUFFALO GROVE, ILLINOIS Demographic and Economic Statistics Last Ten Years Equalized Per Capita Personal Fiscal Assessed Personal Income Per Capita Unemployment Year PoEulation Value {EA V) EAV {in thousands} Income Rate 2011 41,911 (E) $ I ,664,531 ,365 39,716 1,854,3 10 44,244 (E) 7.6% 2010 41,496 (A) 1,799,611 ,219 43,368 2,098,868 (E) 50,580 (E) 8.0% 2009 41,980 (E) I ,896, 782,514 45,183 2,102,316 (E) 50,079 (E) 7.8% 2008 42,170 (E) I ,88 1 ,094,419 44,607 2 ,090,915 (E) 49,583 (E) 6.5% 2007 * 42,440 (E) 1,8 10,82 1,475 42,668 2,083,464 (3) 49,092 (3) 3 .7% 2007 42,564 (E) I ,677,222,407 39,405 2,017,321 (E) 47,395 (E) 3.2% 2006 42,851 (E) 1 ,608,264, 793 37,532 1,9 15,997 (E) 44,713 (E) 4.8% 2005 43,195 (A) I ,492, 778,540 34,559 1,822,051 (E) 42,182 (E) 5.6% 2004 42,963 (A) I ,393,4 18,384 32,433 1,709,670 (2) 39,794 (2) 5 .2% 2003 43,100 (E) I ,319,372,268 30,612 1,703,226 (E) 39,518 (E) 4.7% (A) Actual (E) Estimate *Transitional fiscal year May I , 2007 through December 31, 2007. (I) US Census (2) Northern Illinois University Estimate (3) ESRI Estimate Data Source U.S. Department of Labor, Bureau of Labor Statistics 123 VILLAGE OF B UFFALO GROVE, IL LINOIS Principal Village Employers Current Year and Nine Years Ago EmEioler Siemens Building Technologies Rexam (I) Vapor Bus Dominick's Finer Foods (three locations) Plexus Corporation Harris Trust & Savings Bank SMS-NA USA Baxter Global Technical Services Care mark ASAP Software RG Ray Corporation Federal Express All state Insurance Company Vi ll age of Buffalo Grove Data Source Village Records-earliest available records (I) prior to 2005 -Courtesy Corporation EmEiolees 1,030 573 483 483 370 371 354 250 230 230 2011 Rank I 2 3 4 5 6 7 8 9 10 124 2002 Percent Percent of Total of Total Village Village PoEulation EmEiolees Rank PoEulation 2.48% 1,015 2 2 .36% 1.38% 590 3 1.37% 1.16% 1.16% 480 4 1.1 2% 0.89% 400 5 0.93% 0.89% 345 6 0.80% 0.85% 0.60% 0.55% 0.55% 200 10 0.47% 245 8 0.57% 300 7 0.70% 1,310 l 3.05% 239 9 0.56% OPERATING INFORMATION VILLAGE OF BUFFALO GROVE, ILLINOIS Full-Time Equivalent Employees Last Ten Years (See Following Page) VILLAGE OF BUFFALO GROVE, ILLINOIS Full -Time Equ iva lent Employees Last Ten Years Function/Program 2011 2010 2009 2008 2007* General Government Administration Village Manager's Office 4.0 4.0 4.5 5.0 5.0 Planning 1.5 1.5 1.5 1.5 .1.5 Information Technology 3.5 3.5 3.5 3.5 3.5 Finane« 8.5 8.5 9 .0 9 .5 9.5 Building and Zoning 11.0 10.0 10.0 10 .5 10.5 Public Safety Police Full-Time Police Officers 69.0 69.0 71.0 7 1.0 71.0 Community Service Officers 3.0 3.0 3.0 3.0 3.0 Civil ians 17.5 17.5 20 .5 21.5 21.5 Fire Full-time Firefighters/Paramedics 62.0 62.0 62.0 62 .0 61.0 Civilians 6.0 6.0 6.0 6 .0 6.0 Public Works Pubic Works Administration 11.0 12.0 12.0 14.5 14.5 Streets/Forestry 20.0 20.0 20.0 20 .0 20.0 Water and Sewer 13.0 13.0 13 .0 14.0 14.0 Central Garage 5.5 5.5 5.5 5 .0 5.0 Bui ld ing 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 15.0 268.0 268.0 274.0 279.5 278.5 Recreation Seasonal 34.0 34.0 34.0 34.0 34.0 *Transitional fiscal year May I, 2007 through December 31, 2007. Data Source Village Finance Department 125 2007 2006 2005 2004 2003 4.5 4.5 4.5 4.5 5.0 1.5 1.5 2.0 2.0 2.0 3.5 3.0 3.0 3.0 3.0 9.5 9.5 9.5 10 .0 10.0 10.5 10.5 10.5 10.5 10.5 70.0 70.0 71.0 70.0 76.5 3.0 3.0 3.0 3.0 3.0 22 .5 22.0 22.5 22.0 25.0 62.0 62.0 62.0 62.0 62.0 6.0 5.0 5.0 5.0 6.0 14.5 15.5 15 .5 15 .5 15.5 20.0 19.0 20.0 21.0 21.0 14.0 13 .0 10.0 11.0 12.0 4.0 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 15.0 278 .0 276.0 276.0 277.0 289 .0 34.0 34 .0 34.0 34.0 34 .0 126 VILLAGE OF BUFFA LO GROVE, ILLIN OI S Operating Indicators Last Ten Fiscal Years Function/Program 2011 2010 2009 2008 2007** General Government Build ing and Zoning Building Permits Issued 1,930 1,959 1,922 1,746 1,695 Building Inspections Conducted 9,661 7,088 6,633 5,054 21,383 Property Maintenance Inspections Conducted 3,462 3,158 2 ,348 2,159 2,962 Public Safety Police Physical Arrests 820 981 989 1,085 2 ,143 Parking Violations 2,03 1 2,062 3,267 3,451 4,72 1 Traffic Violations 11 ,867 I 1,999 11,373 15,795 12,0 10 DUI Arrests 164 222 267 337 482 Vehicle Crashes 1,396 1,391 1,414 1,786 1,555 Fire Ambulance Calls/EMS 2,568 2,743 2,553 2,590 2,943 Service Call 1,053 610 718 751 678 Fire Call 737 735 774 88 1 858 Auto Aid/Mutual Aid 676 654 672 689 379 P ublic Works Streets Street Resurfacing (Miles) 2.90 3.00 4.94 4.94 8.23 Parks and Recreation Park Sites 46 46 46 46 46 Golf Courses -Combined Golf Rounds Played -Paid 56,918 52,740 59,723 58,097 60,258 Water New Connections (Tap-ons) 12 50 7 25 33 Average Daily Consumption* 4.09 4 .30 4 .21 4.089 4.347 Peak Daily Consumption* 7.84 7.30 7.29 7.027 8.393 *(millions of gallon) **Transitional fisca l year May I , 2007 through December 31, 2007. N/A-not available Data Source Various Village Departments 127 2007 1,2 82 13 ,416 3,448 N/A N/A N/A NIA NI A 2,583 684 788 406 8.30 46 61,005 98 4 .6 13 8.882 2006 2,01 1 14,744 4,530 2,489 4,751 12 ,0 10 457 1,692 2,66 8 6 14 810 3 15 8.25 46 60,678 6 5.094 9 .791 2005 1,843 12,058 3,260 2,609 ' 5,598 12,312 440 1,7 19 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 128 2,6 18 16,429 1,3 43 2,878 4 ,539 10,686 515 1,792 2,474 754 735 544 5.5 3 46 62,241 II 4.915 10.733 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 (Mi les) Streetlights Water Water Main s (Mil es) Fire Hydrants Wastewater Sanitary Sewers (Miles) 20 11 l 36 3 21 117.70 2,778 180.25 2,475 139.27 •Transitional fisca l year May I , 2007 through December 31 , 2007. Data Source Variou s Village Departments 129 2010 I 36 3 21 117 .70 2,745 179.83 2 ,475 139.27 2009 I 36 3 2 1 117.70 2,743 179.82 2,474 139.27 2008 I 36 3 20 117.50 2,714 180.63 2 ,474 139.24 2007* I 36 3 20 117.50 2,6 14 179.57 2,468 139.12 2007 I 35 3 20 117.50 2,374 178.36 2,449 138.72 2006 I 35 3 20 117 .50 2,374 178.36 2 ,449 138 .72 2005 35 3 20 117.50 2,3 74 178.36 2 ,449 138.72 2004 I 35 3 20 117 .50 2,374 178.36 2,449 138.72 130 2003 I 35 3 20 117.50 2,374 178.36 2,449 138.72