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2012 CAFRVILLAGE OF BUFFALO GROVE, ILLINOIS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2012 Prepared by the 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 Position Statement of Activities Fund Financial Statements Balance Sheet -Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 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 Position -Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds Statement of Cash Flows -Proprietary Funds Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position Notes to the Financial Statements PAGE ii-vi vii viii 1-2 3-17 18-19 20-21 22 23 24 25 26 27 28-29 30 31 32-67 VILLAGE OF BUFFALO GROVE, ILLINOIS Table of Contents FINANCIAL SECTION REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Budgetary Basis) -General Fund Analysis of Funding Progress Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund Employer Contributions Illinois Municipal Retirement Fund Police Pension Fund Firefighters' Pension Fund Other Post-Employment Benefits Analysis of Funding Progress Employer Contributions Note to Required Supplementary Information COMBINING, INDIVIDUAL FUND. AND CAPITAL ASSET FINANCIAL STATEMENTS AND SCHEDULES GOVERNMENTAL FUND TYPES NONMAJOR GOVERNMENTAL FUNDS -COMBINING STATEMENTS Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances NONMAJOR SPECIAL REVENUE FUNDS Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Illinois Municipal Retirement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual PAGE 68 69 69 69 70 70 70 71 71 72 73 74 75 76 77 VILLAGE OF BUFFALO GROVE, ILLINOIS Table of Contents FINANCIAL SECTION COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET FINANCIAL STATEMENTS AND SCHEDULES (CONT.) GOVERNMENTAL FUND TYPES (CONT.) NONMAJOR SPECIAL REVENUE FUNDS (CONT.) Motor Fuel Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Parking Lot Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual NONMAJOR DEBT SERVICE FUNDS Facilities Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual NONMAJOR CAPITAL PROJECTS FUNDS Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Street Maintenance Fund Schedule 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 PAGE 78 79 80 81 82 83 84 VILLAGE OF BUFFALO GROVE, ILLINOIS Table 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) NON MAJOR ENTERPRISE FUNDS Combining Statement of Net Position Combining Statement of Revenues, Expenses and Changes in Net Position 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 85 86 87 88 89 90 91 VILLAGE OF BUFFALO 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 Position -Pension Trust Funds Combining Statement of Changes in Plan Net Position Pension Trust Funds Police Pension Fund Schedule of Changes in Plan Net Position -Budget and Actual Firefighters' Pension Fund Schedule of Changes in Plan Net Position -Budget and Actual School and Park Donations Agency Fund Schedule of Changes in Fiduciary Net Position 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 Position by Component Changes in Net Position Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds PAGE 92 93 94 95 96 97 98-99 100 101-102 103-106 107-108 109-110 VILLAGE OF BUFFALO GROVE, ILLINOIS Table of Contents STATISTICAL SECTION (UNAUDITED) Revenue Capacity Assessed and Actual Value of Taxable Property Property Tax Rates -Direct and Overlapping Governments Principal Property Taxpayers Property Tax Levies and Collections Sales Tax Revenue and Number of Principal Payers Revenue by Category Direct and Overlapping Sales Tax Rates Debt Capacity Ratio of Outstanding Debt by Type Ratio of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Schedule of Legal Debt Margin Demographic and Economic Information Demographic and Economic Statistics Principal Village Employers Operating Information Full-Time Equivalent Employees Operating Indicators Capital Asset Statistics PAGE 111-112 113-114 115 116-117 118-119 120 121 122 123 124 125 126 127-128 129-130 131-132 INTRODUCTORY SECTION VILLAGE OF BUFFALO GROVE, ILLINOIS Officers and Officials December 31, 2012 Jeffrey S. Braiman Village President Jeffrey 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 Village Trustees ******* Dane Bragg Village Manager Director of Management Information Systems Gregory Boysen, P .E. Village EngineerlDirector of Public Works Arthur Malinowski, Esq Director of Human Resources Janet M. Sirabian Village Clerk Beverly Sussman Mike Terson Steve Trilling Geoff Tollefson Arboretum Golf Manager Joe Bridges Buffalo Grove Golf Manager Robert Pfeil Village Planner Brian Sheehan Deputy Building Commissioner Katie Skibbe Assistant Finance Director Terrence Vavra Fire Chief VILLAGE OF BUFFALO GROVE Fifty Raupp Blvd. Buffalo Grove, IL 60089-2100 Phone 847-459-2500 Fax 847-459-0332 June 28,2013 The Honorable Jeffrey Braiman Members of the Village Board Citizens of the Village of Buffalo Grove The Comprehensive Annual Financial Report (CAFR) of the Village of Buffalo Grove for the year ended December 31,2012 is submitted herewith. This report represents a comprehensive picture of the Village's financial activities during Fiscal Year 2012 and the financial condition of its various funds at December 31, 2012. State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audit in accordance with generally accepted auditing standards by a firm of licensed 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 has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. Wolf & Company LLP, Independent Certified Public Accountants, have issued an unmodified (clean) opinion on the Village's financial statements for the fiscal year ended December 31, 2012. The independent auditor's report is presented at the front of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management's Discussion and Analysis (MD&A). The letter of transmittal is designated to complement the MD&A and should be read in conjunction with it. The Village of Buffalo Grove's MD&A can be found immediately following the report of the independent auditors. Profile of the Village of Buffalo 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 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 specifically granted, or prohibited, by the Illinois Constitution. As a home rule entity, the Village has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the issuance of debt or to increase property taxes. The Village operates under a Council/Manager form of government. Policy making and legislative authority are vested with the Village Board, which consists of a President and a six member Board of Trustees. The Village Board is responsible 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. 11 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 228 full-time and 92 part-time/seasonal positions in the Fiscal Year 2012 annual budget. Budgetary Control and Accounting Systems The annual budget serves as the foundation for the Village's fmancial planning and as a management spending control document. All departments of the Village of Buffalo Grove are required to submit budget requests by a specified date each year. These requests serve as the starting point for budget development. The proposed budget is presented to the Village Board in November and adopted by resolution in December with the property tax levy. Legal spending thresholds are established through an Appropriation Ordinance. The Village Board is required to hold a public hearing on the Appropriation Ordinance and must adopt a final budget no later than December 31 st of each year. The appropriated budget is prepared by fund, and department (e.g., police). Department directors may make transfers of appropriations within a department. Transfers of appropriations between fund/account groups, however, require the special approval of the Village Board. The accounts of the Village are organized on the basis of funds, each of which is considered a separate and distinct accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues 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 activities are controlled. The accounting 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 liability 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. Factors Affecting Financial Condition Local Economy The Village is primarily residential, with supporting commercial activity and limited industrial and manufacturing activity. There are approximately 700 licensed businesses operating in the Village. The majority of residents are employed in management, professional, sales and office occupations. The Village's unemployment statistics have consistently beat the national and state averages, with an unemployment rate at the end of the year at 7.2 percent besting the metro area by 1.5 percent. External economic factors at the national and state level continue to impact the Village's revenue profile and, subsequently, its ability to manage operating and capital resources. • Sales taxes (municipal and home rule) totaled $7,570,917, which is an increase from the previous year's total of $6,984,134. Last year's sales tax number was reduced by $.5 million due to sales taxes nexus error repaid in FY 2011. Factoring for the tax repayment, sales tax increased by 1.25 percent. • Prepared food and beverage tax revenues increased from $712,788 to $716,154 or.5 percent. • Real estate transfer taxes generated $459,036 in 2011 versus $629,375 in 2011. Sales of commercial and industrial properties slowed considerably in the current fiscal year. • Simplified telecommunications tax revenues increased from $2,134,462 to $2,200,809. The Village equalized assessed valuation decreased by $110 million or 6.2 percent to $1.66 billion in the 2011 levy year. The decrease is due primarily to property reassessments. 111 The unassigned fund balance of the General Fund will again exceed the 25 percent threshold of the subsequent year's budgeted expenditures, less transfers to pensions, which is 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 31, 2008 $11,587,937 $31,021,971 37.35% December 31, 2009 $ 9,005,069 $29,418,559 30.61% December 31,2010 $ 9,563,655 $29,266,181 32.68% December 31, 2011 $ 9,872,594 $29,271,054 33.73% December 31, 2012 $10,302,515 $29,768,828 34.61% Long-Term Financial Planning The Village compiles a Five-Year Financial Forecast annually which provides an analysis of future revenue and expenditures. This report is completed in tandem with start of the annual budget process. Other long- range financial plans include the five-year Capital Improvement Plan, Twenty-Year Water Fund Pro- Forma, and Reserve for Capital Replacement Funding Report. The Village assesses its capital needs through the Capital Improvement Plan (CIP) update. This document is a planning tool to identify short and medium 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 $42 million in capital improvements. Transportation-related projects represent a large percentage of the improvements at $29 million. Routine maintenance of existing streets accounts for $25 million of those projects. Approximately $7.5 million is allocated to improving and maintaining the water utility system. The Twenty-Year Water Fund Pro-Forma provides an overview of the Water Fund and adequacy of the current water rate to fund operating expenses and infrastructure improvements, as well as generating a reserve to continue with a pay-as-you-go approach to capital budgeting. The Reserve for Capital Replacement Funding Report lists all Village owned vehicles, service life, and its respective reserve balance. Major Initiatives The most significant economic development opportunity involves the potential redevelopment of the municipal campus and a portion of the Buffalo Grove Golf Club properties into a central business district development. On a smaller scale, the Village continues to coordinate with commercial property owners in the Dundee and Milwaukee Road corridors to affect redevelopment of vacant land and declining commercial areas. New retail developments include the addition of three restaurant establishments at Plaza Verde East. The Village also enjoyed the addition of several new non-retail commercial enterprises including the expansion of Connexion, Leica Microsystems, Sysmex and LG Electronics' North American R&D Center. The Village issued $6 million in general obligation bonds to fund pavement resurfacing of approximately 10.85 miles of roadway. This was the largest single annual street maintenance program in the history of the Village. The funds supplemented Motor Fuel Tax proceeds that are designated for annual street repairs. In order to address the Emerald Ash Borer infestation, the Village secured a $6 million line of credit to be used to pay for the eventual replacement of over 7,000 Village owned Ash trees over the next several years. iv The Village completed a financial software conversion during the year. One of the significant improvements with the new software is the ability to offer e-services to Village residents and customers. Awards and acknowledgments The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Buffalo Grove for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2011. This was the thirty-first consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfies both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the Village also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for the fiscal year beginning January 1, 2012. In order to qualify for the Distinguished Budget Presentation Award, the Village's budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device. The preparation of this report would not have been possible without the dedicated services of the entire staff of the Finance Department especially Assistant Finance Director Katie Skibbe. Credit also must be given to the Village President and Board of Trustees, and the Village Manager Dane Bragg for their assistance in planning and conducting the fiscal affairs of the Village in a responsible manner. Respectfully sut)mlttej:i, e:on Director of Finance/Village Treasurer v Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Buffalo Grove Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~"'.; p~"'" " ..... , ',' ". : . President Executive Director vi FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT Wolf 13l Company LLP To the Honorable Village President Members of the Board of Trustees Village of Buffalo Grove, Illinois INDEPENDENT AUDITOR'S REPORT Wolfi/,J Company Oakbrook Terrace Chicago We have audited the accompanying fmancial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information for the Village of Buffalo Grove, Illinois, as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fmancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo Grove, Illinois, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. PKr A PKF International Member Firm 1901 S. Meyers Road, Suite 500 630.545.4500 main Oakbrook Terrace, Illinois 60181-5209 630.574.7818/a.x www.wolfcpa.com Change in Accounting Principle As described in Note I.C to the financial statements, the Village of Buffalo Grove, Illinois, adopted GASB Statement No. 63 -Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position; and GASB Statement No. 65-3, Items Previously Reported as Assets and Liabilities, in 2012. Our opinion is not modified in respect to that matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and analysis of funding progress and employer contributions for the Village's defined contribution pension plans and other post-employment benefit plan on pages 3-17 and 68-72 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic [mancial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's response to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Buffalo Grove, Illinois' basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the aUditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the aUditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Oakbrook Terrace, Illinois June 28, 2013 MANAGEMENT'S DISCUSSION AND ANALYSIS VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2012 The Village of Buffalo Grove's Management's Discussion and Analysis (MD&A) offers the readers of the Village of Buffalo Grove's fmancial statements this narrative overview and analysis of the financial activities of the Village of Buffalo Grove for the fiscal year ended December 31, 2012. This information presented here should be considered in conjunction with additional information provided in the letter of transmittal, which is found on pages ii-v. Financial Highlights • The assets of the Village exceeded its liabilities at December 31, 2012 by $116.1 million (net position). The Net Position for governmental activities is $67.7 million or 58 percent of the total and business-type activities account for $48.4 million. Of this amount, $21 million is unrestricted and may be used to meet the Village's ongoing obligations to residents and creditors. • The Village's net position decreased by $3.4 million (or 2.9 percent) during the fiscal year ending December 31, 2012. The governmental net position decreased by $1 million and the business-type activities net position decreased by $2.4 million. • As of December 31,2012, the Village of Buffalo Grove's general fund reported combined ending fund balances of$19.7 million, an increase of$.9 million from the prior year. Of this amount, $10.8 million was unassigned. • The Village's total debt increased by $5.2 million (or 72.5 percent). The Village issued $6 million in general obligation debt to fund street maintenance. Overview of the Financial Statements The MD&A is intended to serve as an introduction to the Village's basic financial statements. The Village of Buffalo Grove's basic financial statements are comprised of three components: 1) government-wide fmancial statements, 2) fund financial statements, and 3) notes to the fmancial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide Financial Statements The government-wide fmancial statements (found on pages 18-21) are designed to provide readers with 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 for the Primary Government. The statement of net position presents information on all the Village's assets and liabilities, with the difference between the two reported as net position. Changing of the net position total over time can be one useful indicator in assessing the financial position of the Village. This statement combines and consolidates governmental funds' current financial resources (short-term spendable resources) with capital assets and long-term obligations using the accrual basis of accounting and economic resources measurement focus. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position 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). 3 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village 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 utility taxes finance the majority of these services. The Business- type Activities reflect private sector type operations and include Water and Sewer Funds, Refuse Fund, Buffalo Grove Golf Course and Arboretum Golf Course. The intent is for the fees to cover the costs of operations, infrastructure replacement, and debt services expenses. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village uses fund accounting to ensure 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 22-25) are used to account for primarily the same functions reported as governmental activities in the government-wide fmancial statements. The focus, unlike the government-wide financial statement, is on the sources and uses of available resources (cash and cash equivalents), in order to provide a near, or short-term view of the Village's operations. This information is useful in the evaluation of short-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide fmancial 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 fund balance sheet and the governmental fund 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 balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, which is classified as a major fund. Data on the other seven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the report. Proprietary Funds (see pages 26-29) are used to report the same functions presented as business-type activities in the government-wide fmancial statements. The Village uses enterprise 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 fmancial 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 85-91 of this report. Fiduciary Funds (see pages 30 and 31) 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 s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 92-96 of this report. 4 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Notes to the financial statements 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 32-67 of this report. Other Information 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 as 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 68-72 of this report. Government-wide Financial Analysis The assets of the Village of Buffalo Grove exceeded liabilities by $116.1 million as of December 31, 2012. The largest portion of the Village's net position reflects its investment in capital assets (76.5 percent). 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 investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay the debt must be provided from other sources, since the capital assets cannot be used to reduce these liabilities. An additional portion of the Village's net position ($6.3 million) represents resources that are subject to external restrictions on how they may be used. $6.1 million is restricted for contractual construction obligations including the street project that was debt financed. The remaining balance of unrestricted net position ($21 million or 18.1 percent) 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 position for the government as a whole. The Village's combined net position decreased by $3.4 million as a result of governmental activities decreasing by $1 million and business-type activities decreasing by $2.4 million. The net position of the Village's governmental activities was $67.7 million. The Village's unrestricted net position for governmental activities that are available for day-to-day financial operations were $9.3 million compared to $13.4 million at December 31, 2011. The net position of business-type activities was $48.4 million. The business-type activities unrestricted net position decreased by $1.3 million from the previous year. 5 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Please refer to table below for condensed Statement of Net Position: Statement of Net Position As of December 31, 2012 and 2011 (in millions) Governmental Business-Type Activities Activities 2012 2011 2012 2011 Current and Other Assets $ 45.2 38.9 12.9 l3.9 Capital Assets 58.5 60.5 36.8 37.9 Total Assets 103.7 99.4 49.7 51.8 Deferred Outflows 0.1 0.1 Long-Term Liabilities l3.2 8.1 Other Liabilities 8.5 8.5 1.3 1.0 Total Liabilities 21.7 16.6 1.3 1.0 Deferred Inflows 14.4 14.2 Net Assets Net Investment in Capital Assets 52.1 53.4 36.7 37.8 Restricted 6.3 1.9 Unrestricted 9.3 13.4 11.7 13.0 Total Net Position $ 67.7 68.7 48.4 50.8 Normal Impacts Total 2012 2011 58.1 52.8 95.3 98.4 153.4 151.2 0.1 0.1 l3.2 8.1 9.8 9.5 23.0 17.6 14.4 14.2 88.8 91.2 6.3 1.9 21.0 26.4 116.1 119.5 There are five basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net Results of Activities -which will impact (increase/decrease) current assets and unrestricted net position. 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 net investment in capital assets. Reduction of Capital Assets through Depreciation -which will reduce capital assets and net investments in capital assets. 6 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31,2012 Current Year Impacts At the end of the current fiscal year, the Village reported positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. Within the governmental activities, the Village increase in "Current and Other Assets" is due to the $6 million general obligation bond issuance. Declines in "Current and Other Assets" for business-type activities are due to reduced cash balances in the Water Funds as the Village continues with pay-as-you-go fmancing for utility system maintenance projects. 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 position calculations. Declines in "Capital Assets" decreased primarily as a result of depreciation. 7 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31,2012 Changes in Net Position. The Village's total revenues and expenses for governmental and business-type activities are reflected in the following chart: Statement of Changes in Net Position For the Years Ended December 31, 2012 and 2011 (in millions) Governmental Business-Type Activities Activities Total 2012 2011 2012 2011 2012 2011 REVENUES Program Revenues Charges for Services $ 2.6 $ 2.7 10.7 11.0 13.3 13.7 Grants and Contributions Operating 1.2 1.2 1.2 1.2 Capital General Revenues Property Tax 14.3 14.5 14.3 14.5 Sales and Use Taxes 7.6 7.0 7.6 7.0 Income Tax 5.5 3.7 5.5 3.7 Telecommunications Tax 2.2 2.1 2.2 2.1 Utility Tax 2.5 2.6 2.5 2.6 Property Transfer Tax 0.5 0.6 0.5 0.6 Other 2.4 2.7 2.4 2.7 Total Revenues 38.8 37.1 10.7 11.0 49.5 48.1 EXPENSES Governmental Activities General Government 5.6 5.0 5.6 5.0 Public Safety 22.3 22.7 22.3 22.7 Public Works 12.0 11.1 12.0 11.1 Interest 0.4 0.2 0.4 0.2 Business-type Activities Water and Sewer 8.7 8.8 8.7 8.8 Refuse Services 0.9 0.9 0.9 0.9 Golf 3.0 3.1 3.0 3.1 Total Expenses 40.3 39.0 12.6 12.8 52.9 51.8 Deficiency before Transfers (1.5) (1.9) (1.9) (1.8) (3.4) (3.7) Transfer In (Out) 0.5 0.5 (0.52 (0.52 Change in Net Position (1.0) (1.4) (2.4) (2.3) (3.4) (3.7) Net Position, Beginning 68.7 70.1 50.8 53.1 119.5 123.2 Net Position, Ending $ 67.7 68.7 48.4 50.8 116.1 119.5 8 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Normal 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 staffmg. 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 million to $67.7 million. Significant elements contributing to this net change are as follows; Revenues: Revenues for the Village's governmental activities for the year ended December 31,2012 were $38.8 million, an increase of $1.7 million or 4.6 percent. Property taxes continue to be the Village's largest source of revenue (36.9 percent) at $14.3 million. Included within the property tax revenues are the pension levies for the Police and Firefighter Pension Funds and IMRF/Social Security Levies. The pension levies account for 40.5 percent of the property tax levy. Other taxes including sales tax, utility tax, prepared food and beverage tax, hotel tax, and real estate transfer tax total $12.7 million or 32.7 percent of total governmental activities revenue. Intergovernmental revenues, including state income tax account for 14 percent. 9 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Village of Buffalo Grove 2012 Revenue by Source Governmental Activities II Charges for Service II Grants and Contributions Property Taxes II Sales and Use Taxes Income Tax TelecommunicationsTax Utility Taxes Property Transfer Tax Property taxes decreased by $.2 million. The decrease in the tax levy was due to the final payment of the series 2002 general obligation bonds at the end of 2011. The debt service levy decreased by 14.7 percent, while the all other components of the levy increased by 1.2 percent. Sales tax increased by $.6 million compared to the previous year. Last year there was a sales tax repayment due to a nexus error. The effective growth in sales tax was about 1.5 percent. Utility taxes were down $.1 million as the region experienced a very mild winter and revenue collected on natural gas use was down 20.3 percent. Income taxes increased by $1.8 million. $.8 million is due to stronger employment and corporate earnings and the remainder is the inclusion of deferred revenues that represent amounts owed by the State of Illinois. Expenses: The cost of all governmental activities this year was $40.3 million resulting in an increase of 3.3 percent from the previous year ($39 million). Most of the increase ($.9 million) is due to public works projects include the large debt financed street maintenance program. Village of Buffalo Grove 2012 Expenditure by Source Governmental Activities 1.0% 10 General Government II Public Safety Public Works II Interest VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 The Statement of Activities on pages 20 and 21 shows that $2.6 million was financed 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 $35.6 million. Business-type Activities: Business-type activities net position decreased by $2.4 million. Significant causes for the decrease are noted below. Revenue: Water sales declined by $.3 million from the previous year. The amount of water consumed in 2012 averaged about 6,150 gallons per month per residential household compared to last year total of 6,100 gallons. Average water consumption is at historic lows due to maturing landscapes, more efficient appliances, vacant properties and resource conservation. The two golf courses generated $2.22 million versus $2.12 million in 2011. The following graph shows a comparison of revenues and expenses for each business type activity (less depreciation and operating transfers). 9 8 7 6 5 4 3 2 1 Expenses: Village of Buffalo Grove 2012 Business-Type Activities Revenues and Expenses (in millions) Water Fund Buffalo Grove Golf Club Arboretum Golf Club Refuse Fund Revenue • Expense Expenses from all business-type activities decreased by $.2 million or 1.6 percent. Water Fund expenses remained the same as the previous year. Golf expenses decreased due to a reduction in merchandise purchasing. Financial Analysis of the Village's Funds As noted earlier, the Village utilizes fund accounting to ensure and demonstrate compliance with finance 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, 2012 reflect a combined fund balance of $25.7 million on its balance sheet (page 22). This represents a $5 million dollar decrease over the balance posted last year. All of the increase is due to the proceeds of the 2012 bond issue. Of the total fund balance of $25.7 million, $10.4 million is unassigned indicating availability for future obligations. 11 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 The 2012 unassigned fund balance increased by $.8 million. The growth in the unassigned fund balance is due a combination of budget cutting strategies that included position reductions through attrition, reductions in the amount transferred to the Motor Fuel Tax Fund for the annual street maintenance program, and better than anticipated Income Tax receipts. The remainder of fund balance is classified as nonspendable, restricted, committed and assigned. Nonspendable fund balance ($1.6 million) represents amounts set aside for inventory and prepaid insurance. Restricted fund balance ($6.3 million) is allocated to debt service, capital projects and pensions. Committed fund balance ($7.4 million) is to be used for capital replacement ($7 million) and post-employment benefits ($.4 million). Assigned fund balance ($.1 million) is set aside for expenditures at the Metra Commuter Parking Lot. The General Fund is the Village's main operating fund and accounts for core municipal services including, public safety (police and fire), public works, building and zoning, and general administration. As such, it useful to review the liquidity of the fund by comparing the unassigned fund balance against the operating General Fund operating budget. As of December 31,2012, the unassigned fund balance represents 34.8 percent of the operating budget. The Fund Balance of the General Fund increased by $.9 million from December 31,2012. A majority of the growth in the unassigned fund balance was due to an increase of $.6 million in deposits payable. The remainder was generated through budget management. 16 14 12 10 8 6 4 2 o Village of Buffalo Grove 2012 General Fund Tax Revenue 112012 82011 The General Fund's revenues increased by $1.1 million in 2012. Income and sales taxes accounted for all of the increase. The growth in sales tax is due to the repayment of taxes the previous year. Sales tax revenue expanded generally through inflation. The economy still is playing a significant impact on real estate transfer taxes ($.5 million) and revenues generated through construction permitting. Telecommunications tax is stagnant due to customers cutting costs and reducing phone service lines. Electricity and natural gas use taxes totaled $2.4 million and are stable. Interest income continues to decline as investments mature and are invested at lower rates. The historically low Federal Funds Rate has a significant impact on much of the General Fund's investment portfolio. 12 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31,2012 Village of Buffalo Grove 2012 Genera' Fund Expenses (in millions) 25 20 15 10 5 o General Governrrlent Public Safety Public Works Interest 2012 112011 General Fund expenditures decreased by $.5 million or 1.6 percent. The surplus of revenues over expenditures was $1.5 million. Adding in the Other Financing Sources (Uses), the net change to fund balance resulted in an increase of $.9 million. The increase is due to a reduction in the amount of home rule sales tax transferred to the Motor Fuel Tax Fund ($ .2 million), stronger than anticipated income tax receipts, and deferring position hiring upon retirement. During the year there were contributions of $1.6 million to pay-as-you-go financing of capital projects, $.3 million for transfers to the golf courses (unanticipated), and $.7 million for spending on capital equipment. Special Revenue Funds have a combined fund balance of $6.4 million as of December 31, 2012, up $4.5 million from December 31, 2011. The proceeds from the 2012 general obligation bonds were deposited in the Motor Fuel Tax Fund for the annual street maintenance program and accounts for almost all the increase in the fund balance year over year. The Village also contributes .20% of home rule sales tax revenue to the MFT Fund. Revenues received from the state share of the motor fuel tax were $1.1 million. The cost of the 2011 street maintenance program was $2.6 million. The Village contributed an additional $.2 million to the fund. The scope of each year's identified maintenance, as determined through pavement analysis studies, has surpassed the relatively inelastic source of funding (more specifically the Motor Fuel Tax allotments). Given both the rise in the cost of maintenance and the declining revenue, the amount of street surface area repaired each year will decline. The intention of the debt issuance was to catch up with maintenance in order to maintain appropriate pavement standards and try to complete all repairs before road resurfacing turns into a compete rebuild of the pavement. All other funds had slight decreases in fund balance. Illinois Municipal Retirement Fund accounts for employer pension and Social Security/Medicare costs. Fund balance decreased by $5,526 to $140,790. The Debt Service Fund has a fund balance of $19,527 at the end of FY 2012, an increase of $6,984 from the previous year. Total debt totals $12.3 million and are all general obligation bonds. $1 million in debt was paid down in the current year. 13 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31,2012 The Village's Capital Improvement Funds (Facilities and Streets) have a total fund balance deficit of $.4 million which is a reduction of $.3 million from December 31, 2012. Significant projects either completed or are in progress were the engineering study on the Weiland Road Corridor project, Dundee Road Streetscape Improvement, financial software and laserfiche upgrade, and interior improvements in the Village Hall. Proprietary Funds The Village of Buffalo Grove's proprietary funds provide the same type of information found in the govemment- wide financial statements, but in more detail. The Village reports both the Water and Sewer Fund and the Arboretum Golf Course as major proprietary funds. The Water and Sewer Fund accounts for all of the operating expenses of the municipal water system. Water is purchased wholesale from the City of Evanston through the Northwest Water Commission of which the Village is one of four members. Sanitary sewer service is provided by the Lake County Public Works Department for those property owners in Lake County. The Village acts as a billing partner to reduce administrative costs. The Metropolitan Water Reclamation District of Greater Chicago handles all the sanitary sewer treatment for Cook County residents and recovers its expenses through a property tax levy. The water and sewer utility experienced net loss before contributions and transfers of $l.2 million for FY 2012 as compared to net loss of $1 million for the prior year. A rate recommendation was presented, and adopted, in the current year that will better align service charges with operating and capital expenses. In 2012, $.5 million was invested in capital improvements to improve sewer lift stations. Purchased water expense and sanitary sewer fees collected on behalf of Lake County Public Works for FY 2012 account for 22.4 percent of the total operating expense of the fund. Purchased water expense decreased by $49,901 from the prior year. Non-operating revenue (expense) decreased $16,738 due to reduced interest income as a result of lower invested balances and maturing CDs invested at lower rates. Unrestricted net position of the Water and Sewer Fund at the end of the current fiscal year was $1l.2 million. Of that amount, $7.3 million is the Village's equity interest in the Northwest Water Commission and $3.9 is available to cash fmance 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 position deficit balance of $34,377. Total revenues were $1,212 more than the previous year. The Village of Buffalo Grove owns and operates two municipal golf courses. Golf play levels continue to be stagnant given both the economy and the state of the industry. A total of 57,217 paid rounds were played between the two courses. 14 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31,2012 General Fund Budgetary Highlights The budget is formally presented to the Village Board in November and approved in December in conjunction with the tax levy request. As the Village operates under the Appropriations Act, a public hearing is conducted after the budget is adopted for public comment on the Appropriations Ordinance. The Ordinance sets the legal spending ceiling for each fund. The budget is the day-to-day management tool to ensure fiscal accountability. General Fund Budgetary Highlights For the Year Ended December 31, 2012 (in thousands) Budget REVENUES AND TRANSFERS Taxes $ 29,071 Fines and Fees 1,383 Licenses and Permits 279 Other Revenues 2,069 Transfers In 705 Total Revenues and Transfers 33,507 EXPENDITURES AND TRANSFERS Expenditures 32,429 Transfers Out 1,006 Total Expenditures and Transfers 33,435 Change in Fund Balance $ 72 Actual 30,121 1,284 275 2,231 705 34,616 32,362 1,386 33,748 868 Revenue (taxes) performed better than expected due to strong income tax revenue. Actual expenditures exceeded budgeted expenditures due to unexpected, or scope modifications, of capital improvements. 15 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Capital Assets At the end of December 31, 2012, the Village had a combined total of capital assets of $95.2 million invested in a broad range of capital assets including, buildings, streets, storm sewers, and equipment. This amount represents a net decrease (including additions and deductions) of $3.1 million. Land Construction in Progress Land Improvements Buildings Equipment and Vehicles Streets and Storm Sewers Water and Sewer Infrastructure Capital Assets at Year End Net of Depreciation As of December 31, 2012 and 2011 (in millions) Governmental Business-Type Activities Activities 2012 2011 2012 2011 $ 35.96 35.96 6.20 6.20 0.10 0.38 0.05 1.24 2.49 3.02 3.67 3.75 3.70 4.22 4.54 4.53 11.73 12.86 26.75 26.15 $ 58.49 60.50 36.70 37.81 Total 2012 2011 42.16 0.15 2.49 7.37 4.54 11.73 26.75 42.16 1.62 3.02 7.97 4.53 12.86 26.15 95.19 98.31 The Governmental Activities net capital assets decreased from last year by $2 million (3.3 percent). For the Business-type activities, the net capital assets decreased by $1.1 million or (2.9 percent). The most significant capital activity was the completion of Village ERP system, continued progress on the Weiland Road Corridor Study, lift station improvements in the Water Fund, 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 44-45. At year end, the Village had total bonded debt outstanding of$12.3 million as shown in the next table: General Obligation Bonds General Obligation Bonds As of December 31, 2012 and 2011 (in millions) Governmental Activities 2012 2011 $ 12.3 7.2 16 Business-Type Activities 2012 2011 Total 2012 2011 12.3 7.2 VILLAGE OF BUFFALO GROVE, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.) December 31, 2012 Long-Term Debt The Village maintains assigned "AAA" ratings on its general obligation bonds respectively from both Moody's Investor Services and Standard and Poor's Corporation. The total per capita general obligation (GO) debt for the community stands at $289.64 and represents .78 percent 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 46 and 47. Economic Factors and Next Year's Budgets and Rates The Village did enter 2013 with a balanced operating budget. The budget for the fiscal year beginning January 1, 2013 is $61,273,057, a 3.6 percent increase from the previous year. The operating budget totals $33,009,551 resulting in a 1.5 percent over the previous year. Total capital spending during the year is estimated to be $8.7 million. As the economy continues to stabilize and revenues begin to improve, emphasis will remain on developing innovative ways to deliver services and reduce costs. Property taxes remain the Village's most stable revenue although the total assessed value of all taxable property is expected to decline about 6 percent for the 2012 tax levy (extended and collected in 2013). A tax levy was adopted for the 2013 budget that was 1.6% over the last year's request again recognizing the economic strain on property owners within the Village. Other tax revenues, including municipal and home-rule sales tax are expected to increase due to inflation. Much of the sales taxes is generated through restaurants, grocery stores, and building material sales. Income taxes are expected moderate to 2.5 percent growth. One new revenue was added in FY 2013. Rental inspection fees are budgeted at $75,000. One revenue was eliminated. Para mutuel was eliminated due to closure of the OTB facility operating in the Village. Real estate transfer tax revenues are expected to increase over the 2012 budgeted revenues but still remain historically low as the bottom of the housing trough appears to be in sight. A twenty year proforma was completed on the Water Fund in FY 2012, and subsequently a water and sewer rate recommendation was made, and adopted, that will increase water rates by 65 percent over the FY 2013 and 2014 budgets. Budgeted expenditures include general wage adjustment for non-represented employees and contractual salary adjustments which are part of labor agreements. The Village current has two represented employee groups (police and fire). Health insurance increases were minimized through the change to the Intergovernmental Professional Benefits Cooperative (IPBC). All other expenditures will be generally unchanged. There is no additional staffing recommended for FY 2013. CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the Village's finances and to demonstrate the Village's accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Scott Anderson, Director of Finance, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089. 17 BASIC FINANCIAL STATEMENTS VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position December 31, 2012 Governmental Business-Type Activities Activities Total Assets Current Assets Cash and Equivalents $ 14,963,731 2,231,488 17,195,219 Investments 8,547,611 1,777,329 10,324,940 Receivables Property Taxes 14,367,232 14,367,232 Accounts -Water 927,934 927,934 Municipal Sales Tax 2,127,138 2,127,138 Illinois Income Tax 1,959,068 1,959,068 Motor Fuel Tax 85,898 85,898 Telecommunications Tax 494,647 494,647 Food and Beverage Tax 64,475 64,475 Utility Tax 378,779 378,779 Interest 15,332 2,289 17,621 Other 19,757 86,599 106,356 Inventory 106,974 31,669 138,643 Internal Balances 7,770 (7,770) Due from Fiduciary Fund 5,539 5,539 Total Current Assets 43,143,951 5,049,538 48,193,489 Noncurrent Assets Prepaid Items 1,518,445 563,572 2,082,017 Investment in Joint Venture 7,327,160 7,327,160 Net Pension Asset 549,054 549,054 Capital Assets, Net of Accumulated Depreciation Land 35,963,844 6,198,514 42,162,358 Construction in Process 102,205 51,657 153,862 Buildings 3,673,005 3,703,885 7,376,890 Land Improvements 3,030,017 3,030,017 Equipment and Vehicles 4,005,029 4,005,029 Streets and Storm Sewers 11,732,691 11,732,691 Water and Sewer System Infrastructure 26,752,105 26,752,105 Total Noncurrent Assets 60,574,290 44,596,893 105,171,183 Total Assets 103,718,241 49,646,431 153,364,672 Deferred Outflows of Resources Loss on Refunding, Net of Accumulated Amortization 85,995 85,995 See accompanying Notes to the Financial Statements. (Cont.) 18 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position (Cont.) December 31,2012 Governmental Business-Type Activities Activities Total Liabilities Current Liabilities Accounts Payable and Accrued Liabilities 2,524,484 1,262,717 3,787,201 Accumulated Unpaid Sick Leave 176,554 176,554 Due to Fiduciary Fund 3,762 3,762 Deposits Payable 1,545,049 25,844 1,570,893 Other Liabilities -Pension Funds 3,288,918 3,288,918 General Obligation Bonds Payable 940,000 940,000 Total Current Liabilities 8,478,767 1,288,561 9,767,328 Noncurrent Liabilities Net Other Post-Employment Obligation 374,609 374,609 Accumulated Unpaid Sick Leave 1,294,728 1,294,728 General Obligation Bonds Payable 11,556,603 11,556,603 Total Noncurrent Liabilities 13,225,940 13,225,940 Total Liabilities 21,704,707 1,288,561 22,993,268 Deferred Inflows of Resources Deferred Property Taxes 14,367,232 14,367,232 Net Position Net Investment in Capital Assets 52,096,183 36,706,161 88,802,344 Restricted for Road Construction 6,067,760 6,067,760 Restricted for Employee Pension Benefits 140,790 140,790 Restricted for Debt Service 19,527 19,527 Restricted for Capital Projects 39,962 39,962 Unrestricted 9,368,075 11,651,709 21,019,784 Total Net Position $ 67,732,297 48,357,870 116,090,167 See accompanying Notes to the Financial Statements. 19 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Activities Year Ended December 31, 2012 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 $ 5,642,049 22,344,117 12,026,911 384,180 40,397,257 8,702,680 874,366 2,991,170 12,568,216 $ 52,965,473 See accompanying Notes to the Financial Statements. 20 Program Revenues Charges for Services Operating Grants and Contributions 1,226,552 1,283,956 118,547 2,629,055 7,464,870 1,050,386 2,221,714 10,736,970 l3,366,025 166,493 1,011,949 1,178,442 1,178,442 General Revenues 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 Position Net Position Beginning Ending Capital Grants Contributions Net (ExEensel, Revenue and Chan~es in Net Position Governmental Business-Type Activities Activities Total (4,415,497) (4,415,497) (20,893,668) (20,893,668) (10,896,415) (10,896,415) ~384,1801 ~384,1801 ~36,589,7601 ~36,589,7601 (1,237,810) (1,237,810) 176,020 176,020 {769,456 1 ~769,4561 ~1,831,2461 ~1,831,2461 (36,589,760) (1,831,246) (38,421,006) 14,330,407 14,330,407 7,570,915 7,570,915 5,462,111 5,462,111 2,200,809 2,200,809 2,510,242 2,510,242 459,036 459,036 1,070,409 1,070,409 132,436 27,087 159,523 1,239,861 1,259 1,241,120 45 45 635,500 (635,500) 35,611,771 (607,1541 35,004,617 (977,989) (2,438,400) (3,416,389) 68,710,286 50,796,270 119,506,556 67,732,297 48,357,870 116,090,167 21 VILLAGE OF BUFFALO GROVE, ILLINOIS Balance Sheet -Governmental Funds December 31, 2012 Nonmajor Total General Governmental Governmental Fund Funds Funds Assets Cash and Equivalents $ 8,669,577 6,294,154 14,963,731 Investment 8,547,611 8,547,611 Receivables Property Taxes 11,864,138 2,503,094 14,367,232 Municipal Sales Tax 2,127,138 2,127,138 Illinois Income Tax 1,959,068 1,959,068 Motor Fuel Tax 85,898 85,898 Telecommunications Tax 494,647 494,647 Food and Beverage Tax 64,475 64,475 Utility Tax 378,779 378,779 Interest 15,332 15,332 Other 19,757 19,757 Due from Other Funds 462,959 155,336 618,295 Inventory 106,974 106,974 Prepaid Items 1,518,445 1,518,445 Total Assets $ 36,228,900 9,038,482 45,267,382 Liabilities Accounts Payable and Accrued Liabilities $ 2,147,004 377,100 2,524,104 Deposits Payable 1,545,049 1,545,049 Due to Other Funds 3,762 155 2336 159,098 Total Liabilities 3,695,815 532,436 4,228,251 Deferred Inflows of Resources Deferred Property Taxes 11,864,138 2,503,094 14,367,232 Deferred Taxes -Other 947,908 947,908 Total Deferred Inflows of Resources 12,812,046 2,503,094 15,315,140 Fund Balances N onspendable Inventory 106,974 106,974 Prepaid Items 1,518,445 1,518,445 Restricted Debt Service 19,527 19,527 Capital Projects 39,962 39,962 Road Construction 6,067,760 6,067,760 Employee Pension Benefits 140,790 140,790 Committed Employee Benefits 352,986 352,986 Capital Replacement 6,982,699 6,982,699 Assigned Parking Lot Operations 144,075 144,075 Unassigned Special Revenue Funds (409,162) (409,162) General Fund 10,759,935 10,759,935 Total Fund Balances 19,721,039 6,002,952 25,723,991 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 36,228,900 9,038 2482 45,267,382 See accompanying Notes to the Financial Statements. 22 VILLAGE OF BUFFALO GROVE, ILLINOIS Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position December 31, 2012 Total Fund Balances -Governmental Funds Amounts reported for governmental activities in the Statement of Net Position 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 Position. Some assets (liabilities) reported in the Statement of Net Position 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 Certain Deferred Inflows of Resources in the governmental funds are earned revenues in the Statement of Net Position Loss on refunding of debt is reported as a Deferred Outflows of Resources in the Statement of Net Position, but does not provide current financial resources. Therefore, it is not reported in the governmental funds. Net Position of Governmental Activities See accompanying Notes to the Financial Statements. 23 $ 25,723,991 58,506,791 (450,030) 549,054 (374,609) (3,288,918) (12,496,603) (1,471,282) 947,908 85,995 $ 67,732,297 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2012 Nonmajor Total General Governmental Governmental Fund Funds Funds Revenues Charges for Services $ 1,084,881 151,277 1,236,158 Licenses and Permits 275,434 275,434 Intergovernmental 1,011,949 1,011,949 Fines and Fees 1,283,956 1,283,956 Property Taxes 11,797,071 2,533,336 14,330,407 Other Taxes 18,324,094 1,520 18,325,614 Investment Income 131,804 653 132,457 Miscellaneous 1,014,090 225,771 1,239,861 Total Revenues 33,911,330 3,924,506 37,835,836 Expenditures Current General Government 4,401,067 696,076 5,097,142 Public Safety 21,381,466 409,752 21,791,218 Public Works 6,579,347 3,286,376 9,865,723 Capital Outlay 1,561,904 1,561,904 Debt Service Principal 920,000 920,000 Interest and Fiscal Charges 220,885 220,885 Bond Issuance Costs 64,535 64,535 Total Expenditures 32,361,879 7,159,528 39,521,407 Excess (Deficiency) of Revenues over Expenditures 1,549,451 p,235,0221 p,685,571 1 Other Financing Sources (Uses) Proceeds from Sale of Assets 45 45 Proceeds from Issuance of Debt 6,000,000 6,000,000 Premium on Issuance of Debt 91,669 91,669 Transfers In 705,000 1,916,132 2,621,132 Transfers Out {1,385,6321 {600,0001 p,985,6321 Total Other Financing Sources (Uses) {680,5871 7,407,801 6,727,214 Net Change in Fund Balances 868,864 4,172,779 5,041,643 Fund Balances Beginning 18,852,175 1,830,173 20,682,348 Ending $ 19,721,039 6,002,952 25,723,991 See accompanying Notes to the Financial Statements. 24 VILLAGE OF BUFFALO GROVE, ILLINOIS Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended December 31, 2012 Net Change in Fund Balances -Total Governmental Funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets. This is the amount by which depreciation exceeded capital outlays in the current period ($583,394 current additions less $2,578,929 depreciation). Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Premiums and other items from bond issuance are reported currently in the fund statements, but amortized over the bond life in the Statement of Activities. Premium on Issuance of Debt, 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. Revenues not providing current resources are not reported as revenues in the fund statements. 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: Bond Issuance Costs Increase in Pension Asset Increase in Net Other Post-Employment Obligation Decrease in Accumulated Unpaid Sick Leave Change in Net Position of Governmental Activities See accompanying Notes to the Financial Statements. 25 $ 5,041,643 (1,995,535) (5,080,000) (73,460) (10,749) 276,038 947,908 (106,220) 29,411 (53,643) 46,618 $ (977,989) VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Net Position -Proprietary Funds December 31, 2012 Governmental Business-Tl:Ee Activities -EnteEErise Funds Activities Waterworks Arboretum Nonmajor Internal and Sewerage Golf Course Enterprise Service Fund Fund Funds Total Fund Assets Current Assets Cash and Equivalents $ 1,862,502 368,986 2,231,488 Investments 1,777,329 1,777,329 Receivables Accounts -Water 927,934 927,934 Interest 2,289 2,289 Other 86,599 86,599 Inventory 9,513 22,156 31,669 Total Current Assets 4,570,054 9,513 477,741 5,057,308 Noncurrent Assets Prepaid Items 563,572 563,572 Investments in Joint Venture 7,327,160 7,327,160 Capital Assets, Net of Accumulated Depreciation Land 5,219,738 978,776 6,198,514 Construction in Progress 51,657 51,657 Buildings 3,455,347 248,538 3,703,885 Water and Sewer System 26,752,105 26,752,105 Total Noncurrent Assets 34,694,494 8,675,085 1,227,314 44,596,893 Total Assets 39,264,548 8,684,598 1,705,055 49,654,201 Liabilities Current Liabilities Accounts Payable and Accrued Liabilities 1,200,567 37,667 24,483 1,262,717 380 Deposits Payable 25,844 25,844 Due to Other Funds 6,223 1,547 7,770 449,650 Total Liabilities 1,226,411 43,890 26,030 1,296,331 450,030 Net Position Net Investment in Capital Assets 26,803,762 8,675,085 1,227,314 36,706,161 Unrestricted 11,234,375 {34,3772 451,711 11,651,709 {450,0302 Total Net Position $ 38,038,137 8,640,708 1,679,025 48,357,870 {450,0302 See accompanying Notes to the Financial Statements. 26 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Revenues, Expenses, and Changes in Net Position -Proprietary Funds Year Ended December 31,2012 Governmental Business-TYEe Activities -EnterErise Funds Activities Waterworks Arboretum Nonmajor Internal and Sewerage Golf Course Enterprise Service Fund Fund Funds Total Fund Operating Revenues Water and Sewerage Charges $ 7,409,420 7,409,420 Daily Greens Fees and Memberships 772,329 758,884 1,531,213 Merchandise Sales 47,666 77,185 124,851 Connection and Recapture Fees 55,450 55,450 Cart, Club and Other Rentals 232,941 209,328 442,269 Driving Range Fees 51,409 51,409 SWANCC User Fees 1,050,386 1,050,386 Health Premiums 1,147,400 Miscellaneous 45,182 26,790 71,972 Total Operating Revenues 7,464,870 1,098,118 2,173,982 10,736,970 1,147,400 Operating Expenses Water Operations 1,623,918 1,623,918 Sewer Operations 4,365,026 4,365,026 Water Purchases 1,728,612 1,728,612 Golf Operations 1,266,132 1,108,473 2,374,605 Cost of Sales -Pro Shop 46,397 48,725 95,122 Refuse Operations 855,091 855,091 Other 19,275 19,275 Health Services 871,341 Gain from Joint Venture (82,315) (82,315) Depreciation 1,067,439 488,658 32,785 1,588,882 Total Operating Expenses 8,702,680 1,801,187 2,064,349 12,568,216 871,341 Operating Income (Loss) {1,237,81O l {703,069 1 109,633 {l,831,2461 276,059 Nonoperating Revenues (Expense) Investment Income 28,573 (1,486) 27,087 (21) Other 1,259 1,259 29,832 {1,4861 28,346 {21 1 Income (Loss) before Transfers {1,207,978 1 {703,069 1 108,147 {1,802,9OO1 276,038 Transfers In 217,000 52,500 269,500 Transfers Out {905,0001 {905,0001 Transfers, Net {905,0001 217,000 52,500 {635,5OO1 Change in Net Position (2,112,978) (486,069) 160,647 (2,438,400) 276,038 Net Position Beginning 40,151,115 9,126,777 1,518,378 50,796,270 {726,068 1 Ending $ 38,038,137 8,640,708 1,679,025 48,357,870 {450,030 1 See accompanying Notes to the Financial Statements. 27 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Cash Flows -Proprietary Funds Year Ended December 31! 2012 Governmental Business-Type Activities -Entef(~rise Funds Activities Waterworks Arboretum Nonmajor Internal and Sewerage Golf Course Enterprise Service Fund Fund Funds Total Fund Cash Flows from Operating Activities Cash Received from Residents for Water/Sewer Services $ 7,741,895 7,741,895 Cash Received from Residents for Connections 55,450 55,450 Cash Received for Golf Activities 1,098,118 1,123,596 2,221,714 Cash Received for Refuse Services 1,050,137 1,050,137 Cash Received from Other Funds for Services 1,147,400 Payments to Employees (1,359,128) (773,815) (694,314) (2,827,257) Payments to Suppliers { 6,228,611 2 {548,861 2 {1,358,275 2 {8,135,7472 {1,313,3502 209,606 {224,558 2 121,144 106,192 {165,9502 Cash Flows from Noncapital Financing Activities Change in Internal Balance, Net 1,547 1,547 (6,592) Transfers In 223,223 52,500 275,723 Transfers Out {905,0002 {905,0002 {905,0002 223,223 54,047 ~627,7302 {6,592 2 Cash Flows from Capital and Related Financing Activities Capital Assets Purchased {487,894 2 {487,8942 Cash Flows from Investing Activities Interest Received(Paid) 30,720 (1,486) 29,234 (21 ) Sale of Investments 492,925 492,925 523,645 {1,4862 522,159 {212 Net Increase (Decrease) in Cash and Equivalents (659,643) (I,335) 173,705 (487,273) (172,563) Cash and Equivalents Beginning 2,522,145 1,335 195,281 2,718,761 172,563 Ending $ 1,862,502 368,986 2,231,488 See accompanying Notes to the Financial Statements. (Cont.) 28 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Cash Flows -Proprietary Funds (Cont.) Year Ended December 31, 2012 Business-Type Activities -Enterprise Funds Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Adjustments to Reconcile Operating Income (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 Appreciation of Investments Waterworks Arboretum Nonmajor and Sewerage Golf Course Enterprise Fund Fund Funds Total $ (1,237,810) (703,069) 109,633 (1,831,246) 1,067,439 488,658 32,785 1,588,882 (82,315) (82,315) 332,475 (249) 332,226 (2,122) (165) (2,287) (228,236) (228,236) 375,846 (8,025) (20,860) 346,961 (17,793) (17,793) 1,447,416 478,511 11,511 1,937,438 $ 209,606 (224,558) 121,144 106,192 $ 7,300 7,300 See accompanying Notes to the Financial Statements. 29 Governmental Activities Internal Service Fund 276,059 121,578 (563,587) (442,009) (165,950) VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Fiduciary Net Position December 31, 2012 Assets Cash and Equivalents Investments U.S. Government and Agency Obligations Open-end Mutual Funds Receivables Pension Contributions Interest Due From Village Total Assets Liabilities Accounts Payable Due to Village Due to Other Governments Total Liabilities Net Position Restricted for Pension Benefits See accompanying Notes to the Financial Statements. 30 Pension Trust Funds $ 5,189,495 38,037,841 42,036,012 3,288,918 110,035 3,762 88,666,063 42,552 5,539 48,091 $ 88,617,972 Agency Fund 600,595 600,595 600,595 600,595 VILLAGE OF BUFFALO GROVE, ILLINOIS Statement of Changes in Fiduciary Net Position Year Ended December 31, 2012 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 Position Net Position Beginning Ending See accompanying Notes to the Financial Statements. 31 $ 4,213,620 1,177,508 5,391,128 6,035,159 830,424 (313,408) 6,552,175 11,943,303 41,891 3,340,904 3,382,795 8,560,508 80,057,464 $ 88,617,972 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 1. Summary of Significant Accounting Policies The Village of Buffalo Grove, Illinois (Village) was incorporated on 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 financial statements present the Village (the primary government) and its component units. In evaluating how to defme the reporting entity, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made based upon the significance of their operational or financial relationships with the primary government. Financial accountability is defined as: (1) Appointment of a voting majority of the component unit's board and either (a) the ability to impose will by the primary government, or (b) the possibility that the component unit will provide a fmancial benefit to, or impose a fmancial burden on, the primary government; or (2) Fiscal dependency on the primary government. The accompanying financial statements present the Village of Buffalo Grove. The Village has determined that no other entity meets the above criteria and, therefore, no other entity has been included as a component unit in the Village's financial statements. B. Government-wide and Fund Financial Statements Government-wide Financial Statements The government-wide Statement of Net Position and Statement of Activities report the overall financial activity of the Village. Eliminations generally have been made to minimize the double-counting of internal activities of the Village; however, interfund services provided and used are not eliminated in the process of consolidation. The financial activities of the Village consist of governmental activities, which are primarily supported by taxes and intergovernmental revenues, and business-type activities, which rely to a significant extent on fees and charges for services. The Statement of Net Position presents the Village's non-fiduciary assets and liabilities with the difference reported in three categories: Net investment in capital assets 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 position result when constraints placed on net position use are either externally imposed by creditors, grantors, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation. Unrestricted net position consist of net position that do not meet the criteria of the two preceding categories. 32 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 1. Summary of Significant Accounting Policies (Cont.) B. Government-wide and Fund Financial Statements (Cont.) Government-wide Financial Statements (Cant.) The Statement of Activities demonstrates the degree to which the direct expenses of a given function (i.e. general government, public safety, etc.) are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs (including fines and fees), and (b) grants and contributions that are restricted to meeting the operational requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fiduciary funds are excluded from the government-wide financial statements. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds and fiduciary (agency) funds, even though the latter are excluded from the government-wide financial statements. The fund financial statements provide information about the Village's funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. The Village has the following major governmental fund -General Fund. All remaining governmental funds are aggregated and reported as nonmajor governmental funds. The Village has the following major proprietary funds -Waterworks and Sewerage Fund and Arboretum Golf Course Fund. All remaining proprietary funds are aggregated and reported as nonmajor proprietary funds. The Village administers the following major governmental funds: General Fund -This is the Village's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The services which are administered by the Village and accounted for in the General Fund include general government, public safety and public works. The Village administers the following major proprietary funds: Waterworks and Sewerage Fund -This fund accounts for the provision of water and sewer services to the residents of the Village. All activities necessary to provide such services are accounted for in this fund, including but not limited to, administration, operations, maintenance, financing and related debt service and billing and collection. Arboretum Golf Course Fund -This fund accounts for the operation of the Arboretum golf course. All activities necessary to provide the service are accounted for in this fund including, but not limited to, administration, operations, maintenance and related debt service. The Village also administers one internal service fund, the Health Insurance Reserve Fund, to account for the activities of its health benefits program. 33 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 1. Summary of Significant Accounting Policies (Cont.) B. Government-wide and Fund Financial Statements (Cont.) Fund Financial Statements (Cont.) Additionally, the Village administers fiduciary funds (pension trust and agency) for assets held by the Village in a fiduciary capacity. Included are the Village's Police Pension Fund and Firefighters' Pension Fund which accumulate resources for the retirement annuity payments to sworn officers and firefighters. The Village's agency fund, the School and Parks Donation Fund, accounts for monies deposited by developers for local schools and park districts. C. Measurement Focus and Basis of Accounting and Financial Statement Presentation The government-wide fmancial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flow takes place. Nonexchange transactions, in which the Village gives (or receives) value without directly receiving (or giving) equal value in exchange, include various taxes, State shared revenues and various State, Federal and local grants. On an accrual basis, revenues from taxes are recognized when the Village has a legal claim to the resources. Grants, entitlements, State-shared revenues and similar items are recognized in the fiscal year in which all eligibility requirements imposed by the provider have been met. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal year, except for property taxes which are described in Note 4. Significant revenue sources which are susceptible to accrual include property, 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 employee retirement or termination). General capital asset acquisitions are reported as expenditures in governmental funds. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the proprietary fund's principal ongoing operations. When both restricted and unrestricted resources are available for use, it is the Village's policy to use the restricted resources first, then unrestricted resources as they are needed. 34 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 1. Summary of Significant Accounting Policies (Cont.) C. Measurement Focus and Basis of Accounting and Financial Statement Presentation (Cont.) The Village adopted Governmental Accounting Standards No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (GASB No. 63). GASB No. 63 provides guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of fmancial position and related disclosures. The Village also adopted Governmental Accounting Standards No. 65, Items Previously Reported as Assets and Liabilities (GASB No. 65). GASB No. 65 reclassifies as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities. The Village reports deferred inflows of resources on its statement of net position. Deferred inflows of resources arise when resources are received by the Village that represent an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. In subsequent periods, when the Village has a legal claim to the resources, the liability for deferred inflows of resources is removed from the Statement of Net Position and revenue is recognized. D. Cash Equivalents For purposes of the statement of cash flows, the Village considers all highly liquid investments (including restricted assets) with maturity of three months or less when purchased to be cash equivalents. E. Cash and Investments The investments which the Village may purchase are limited by Illinois law to the following: (1) securities which are guaranteed by the full faith and credit of the U.S. Government as to principal and interest; (2) bonds, notes, debentures or other similar obligations of the United States of America or its agencies; (3) certificates of deposit or time deposits of any bank, as defmed by the Illinois Banking Act, or savings and loan association incorporated under the laws of Illinois which are insured by a Federal corporation; (4) short-term discount obligations of the Federal National Mortgage Association; (5) certain short-term obligations of corporations (commercial paper) organized in the United States with assets exceeding $500 million that are rated at the time of purchase in the three highest classifications by at least two of the major rating services and which mature not later than 180 days from purchase, and such purchases do not exceed 10% of the corporation's outstanding obligations; (6) the State Treasurer's Illinois Funds; (7) the Illinois Metropolitan Investment Fund; and (8) money market mutual funds which invest only in securities authorized above. In addition, Pension Trust Funds are also permitted to invest in the following instruments: (1) general accounts of Illinois-licensed life insurance companies; (2) separate accounts of Illinois-licensed companies invested in stocks, bonds, and real estate, limited to 10% of the funds' investments; (3) certain equities (subject to limitations). F. Investments Investments are stated at fair value. 35 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 1. Summary of Significant Accounting Policies (Cont.) 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 in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. H. Interfund Receivables/Payables The Village has the following types of transactions between funds: Loans and Advances -amounts provided with a requirement for repayment. In the fund financial statements, interfund loans are reported as due from other funds in lender funds and due to other funds in borrower funds. Any residual balances outstanding between the governmental activities and business-type activities are reported as internal balances in the government-wide Statement of Net Position. Services Provided and Used -sales and purchases of goods and services between funds for a price approximating their external exchange value. Interfund services provided and used are reported as revenues in seller funds and expenditures or expenses in purchaser funds. Unpaid amounts are reported as due to/from other funds in the fund Balance Sheets or fund Statements of Net Position. 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 defined as assets with an initial, individual cost of more than $10,000, and an estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset, are capitalized. Expenditures for asset acquisitions and improvements are stated as capital outlay expenditures in the governmental funds. Interest incurred during the construction phase of capital assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. 36 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 1. Summary of Significant Accounting Policies (Cont.) I. Capital Assets (Cont.) 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 Position and is provided on the straight-line basis over the following estimated useful lives: Buildings Well and System Improvements Furniture and Equipment Vehicles 20 years 5-50 years 2-10 years 2-12 years Gains or losses from sales or retirements of capital assets are included in the operations on the Statement of Activities. J. Deferred Inflows of Resources Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. K. Sick Leave, Vacation Pay and Postretirement Benefits Vacation pay does vest; employees may carry over vacation time equivalent of one full year's allowance. All vacation hours carried over from the previous year must be used in the current year or be subject to forfeit. Terminees are reimbursed for any accumulated and earned vacation pay. The amounts of such accumulated vacation benefits are not material. In the event of termination, any vested amounts due to Village employees for accumulated unused sick leave will be paid to ICMA Retirement Corporation based on the formula set forth in the Village's personnel manual. Except for those amounts for known retirements in the upcoming year, accrued amounts are generally considered to be noncurrent. Amounts are reported as liabilities in the Government-wide Statement of Net Position. 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 position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund fmancial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 37 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 1. Summary of Significant Accounting Policies (Cont.) L. Long-Term Obligations (Cont.) 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 fmancial resources is reported as a fund liability of a governmental fund. M. Net PositionlFund Balances There are five classifications of net position/fund balances: (1) Nonspendable -amounts that are not in spendable form (such as inventory) or are required to be maintained 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. The Village Board is the highest level of decision-making authority for the Village that can, by adoption of ordinance or resolution prior to the end of the year, commit fund balance. Once adopted, the limitation remains in place until a similar action is taken (adoption of another ordinance or resolution) to remove or revise the limitation. (4) Assigned -amounts a government intends to use for a specific purpose but do not meet the criteria to be classified as committed. The Village's fund balance policy authorizes the Finance Director to assign fund balance. (5) Unassigned -amounts that are available for any purpose. These amounts are only reported in the General Fund. Net position 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 highest level of constraint are expended first. If restricted or unrestricted funds are available for spending, the restricted funds are spent first. Additionally, if different levels of unrestricted 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 $6,982,699 for the replacement of capital equipment in the General Fund. The Street Maintenance Fund has a deficit balance of$409,162. The deficit will be funded by a transfer from the Motor Fuel Tax Fund in 2013. The Internal Service Fund has a deficit balance of $450,030. The deficit will be funded by a transfer from the General Fund in 2013. 38 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 1. Summary of Significant Accounting Policies (Cont.) N. Accounting Estimates The preparation of the fmancial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures/expenses during the period. Actual results could differ from these estimates. O. Eliminations and Reclassification In the process of aggregating data for the government-wide Statement of Activities, some amounts reported as interfund activity and interfund balances in the funds are eliminated or reclassified. 2. Legal Compliance The budget data included in the 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 financial statements: (1) The Village Manager submits to the Board a proposed program budget for the fiscal year commencing January 1. The program budget includes proposed expenditures and the means of financing them. (2) Appropriation ordinance public hearings are conducted by the Village to obtain taxpayer comments, and the ordinance is subsequently adopted by the Board. (3) The program budget is legally enacted through a resolution adopted by the Board. (4) Any expenditures that exceed the total appropriations at the fund level must be approved by the Board of Trustees. The Village Manager is authorized to transfer budgeted amounts between departments within any fund. However, any modifications to the legally adopted appropriation ordinance may not exceed expenditure limits, at the fund level, mandated by the appropriation ordinance without approval by the Board. 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 net position for subsequent year expenditures. For 2012, the Motor Fuel Tax Fund expenditures exceeded fmal budget by $946,373. Illinois Municipal Retirement Fund expenditures exceeded final budget by $62,192. Arboretum Golf Course Fund expenditures exceed fmal budget by $70,723. Facilities Development Capital Projects Fund expenditures exceeded fmal budget by $439,470. Facilities Development Debt Service Fund expenditures exceed budget by $315. 39 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 3. Deposits and Investments A. Investments As of December 31,2012, the Village's cash and investments consisted of the following: Cash and Cash Equivalents Investments Government-wide $ 17,195,219 10,324,940 $ 27,520,159 Fiduciary 5,790,090 80,073,853 85,863,943 Total 22,985,309 90,398,793 113,384,102 For disclosure purposes, this amount is segregated into three components: 1) cash on hand; 2) deposits with financial institutions, which include amounts held in demand accounts, savings accounts, and certificates of deposit; and 3) other investments. Other investments consist of investments in the Federal National Mortgage Association, Federal Home Loan Banks, Federal Farm Credit Banks, U.S. Government treasuries, municipal bonds, corporate bonds, mutual funds, and common stocks as follows: Cash on Hand Deposits with Financial Institutions -City Deposits with Financial Institutions -Police and Firefighters' Pension Funds and Agency Fund Other Investments -Police and Firefighters' Pension Funds 40 $ 2,700 27,517,459 8,949,660 76,914,283 $ 113,384,102 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 3. Deposits and Investments (Cont.) A. Investments (Cont.) As of December 31, 2012, the Police and Firefighters' Pension Funds have the following investments and maturities: u.s. Government Treasuries U.S. Treasuries -TIPS FNMA's GNMA's U.S. Agencies Municipal Bonds Corporate Bonds Fair Value $ 2,958,674 15,470,122 225,009 1,367 12,046,742 1,572,882 2,603,473 $ 34,878,269 Investments Not Subject to Interest Rate Risk: Equity Mutual Funds Other Investements $ 17,024,530 23,282,931 1,728,553 $ 42,036,014 Less Than One Year 496,569 496,569 Investment Maturities (In Years) 1 to 5 6 to 10 Years Years 1,004,656 1,954,018 12,003,573 3,466,549 225,009 1,367 2,969,589 6,429,972 540,045 543,871 837,122 758,032 17,356,352 13,377,451 More Than 10 Years 2,150,612 488,966 1,008,319 3,647,897 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, 2012: Fair Less Than Value One Year FNMAs $ 752,805 Illinois Funds * 6,408,814 6,408,814 Illinois Metropolitan 4,358,363 4,358,363 Investment Fund* Money Market Funds * 4,185,717 4,185,717 $ 15,705,699 14,952,894 *Based on the weighted average maturity of the respective fund. 41 Maturities (in Years) It05 6tol0 Years Years 752,805 752,805 More Than 10 Years VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 3. Deposits and Investments (Cont.) A. Investments (Cont.) The Illinois Metropolitan Investment Fund (lMET) and The Illinois Funds Investment Pool (lFIP) are not registered with the SEC. Oversight for IMET is provided by the IMET Board. The Board is responsible for policy formulation, as well as policy and administration oversight. Oversight for IFIP is provided by the Auditor General's Office of the State of Illinois. For both pools, the fair value of the position in the pool is the same as the value of the pool shares. B. Interest Rate Risk The Village's investment policy protects against fair value losses resulting from rising interest rates by diversifying its investment portfolio to prevent over-concentration of assets in a specific maturity, a specific issuer, or a specific class of securities. The Village does not have a formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. C. Credit Risk The Village's investment policy applies the "prudent person" standard in managing its investment portfolio. As such, all investments are made with such judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The Village's investment policy also limits investments in commercial paper to the highest rating classifications, as established by at least two of the four major rating services, and which mature not later than 180 days from the purchase date. Such purchases may not exceed 10% of the issuer corporation's outstanding obligations. Credit ratings for the Village's investments in debt securities as described by Standard & Poor's and Moody's, respectively, at December 31, 2012 (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 Illinois Metropolitan Investment Fund Money Market Funds NR -Not Rated 42 Ratings AAAlAA+ AA2, AA3/A, NR AA2, AAA3/AA+, AA- AAAINR AAAlNR AAAlNR %of Investment TyPe 100% 100% 100% 100% 100% 100% VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 3. Deposits and Investments (Cont.) D. Concentration of Credit Risk The Village limits the amount that can be invested in commercial paper to one-third of the Village's total investments. As of December 31, 2012, the Village's investments were not exposed to concentration of credit risk. E. Custodial Credit Risk The Village's investment policy requires all investments and investment collateral to be held in safekeeping by a third party custodial institution as designated by the Treasurer 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 $15,176,883 and the bank balances totaled $15,820,276. As of December 31, 2012, $2,700 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 installments on March 1 and August 1 during the following year in Cook County and on July 1 and September 1 in Lake County. The first installment is an estimated bill and is one-half of the prior year's tax bill while the second installment is based on the current levy, assessment and equalization, and any changes from the prior year less what was paid as part of the first installment. Taxes must be levied by the third Tuesday in December for the current levy year. The levy becomes an enforceable lien against the property as of January 1 of the levy year. The 2012 property tax levy is recorded as a receivable and deferred (unearned) revenue as it is intended to finance fiscal year 2013. 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. 43 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 5. Capital Assets A. Governmental Activities A summary of changes in capital assets for governmental activities of the Village is as follows: Balances Balances Janua!11 Additions Deletions December 31 Capital Assets Not Being Depreciated Land $ 35,963,844 35,963,844 Construction in Progress 379,588 44,680 322,063 102,205 36,343,432 44,680 322,063 36,066,049 Capital Assets Being Depreciated Buildings 22,034,535 561,067 22,595,602 Equipment and Vehicles 12,762,075 75,260 12,837,335 Land Improvements 3,104,714 224,450 106,057 3,223,107 Streets 19,040,719 19,040,719 Storm Sewers 37,665,289 37,665,289 94,607,332 860,777 106,057 95,362,052 Less Accumulated Depreciation For Buildings 18,288,196 634,401 18,922,597 Equipment and Vehicles 8,229,512 63,599 8,293,111 Land Improvements 86,358 751,984 106,057 732,285 Streets 11,004,841 369,392 11,374,233 Storm Sewers 32,839,531 759,553 33,599,084 70,448,438 2,578,929 106,057 72,921,310 Total Capital Assets Being Depreciated, Net 24,158,894 (1,718,152l 22,440,742 Governmental Activities Capital Assets, Net $ 60,502,326 (1,673,472l 322,063 58,506,791 44 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 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 Janua!11 Additions Deletions December 31 Capital Assets Not Being Depreciated Land $ 6,198,514 6,198,514 Construction in Progress 1,237,320 51,657 1,237,320 51,657 7,435,834 51,657 1,237,320 6,250,171 Capital Assets Being Depreciated Buildings 10,284,359 10,284,359 Land Improvements 1,966,488 1,966,488 Equipment 94,510 94,510 Water/Sewer System Infrastructure 56,395,383 1,673,557 58,068,940 68,740,740 1,673,557 70,414,297 Less Accumulated Depreciation For Buildings 6,059,034 521,440 6,580,474 Land Improvements 1,966,485 3 1,966,488 Equipment 94,510 94,510 Water/Sewer System Infrastructure 30,249,396 1,067,439 31,316,835 38,369,425 1,588,882 39,958,307 Total Capital Assets Being Depreciated, Net 30,371,315 84,675 30,455,990 Business-type Activities Capital Assets, Net $ 37,807,149 136,332 1,237,320 36,706,161 C. Depreciation Charged to Functions/Activities Depreciation was charged to functions/activities as follows: Governmental Business-Type Activities Activities General Government $ 368,612 Public Safety 687,434 Public Works 1,522,883 Waterworks and Sewerage 1,067,439 Golf Courses 521,443 $ 2,578,929 1,588,882 45 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 6. Long-Tenn 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]). The General Fund is typically used to liquidate these liabilities. Changes in long-tenn debt were as follows: Due Balances Balances Within Janu~ 1 Additions Reductions December 31 One Year Governmental Activities General Obligation Bonds $2,600,000, 2.25%-3.25% General Corporate Purpose Bond Series of 2003; payable in annual installments of$150,000 to $320,000 through December 31, 20l3. $ 625,000 305,000 320,000 320,000 $5,160,000,2.0%-4.0% General Corporate Purpose Refunding Bond Series of 20 lOA; payable in annual installments of$325,000 to $620,000 through December 31, 2020. 3,975,000 615,000 3,360,000 620,000 $2,600,000,2.500/0-3.85% General Corporate Purpose Bond Series of 2010B; payable in annual installments of$180,000 to $260,000 through December 31, 2025. 2,600,000 2,600,000 $6,000,000,2.00%-2.75% General Corporate Purpose Bond Series of 2012; payable in annual installments of$100,000 to $750,000 through June 30, 2030. 6,000,000 6,000,000 Unamortized bond premium 143,143 91,669 18,209 216,603 Total General Obligation Bonds 7,343,143 6,091,669 938,209 12,496,603 940,000 Accumulated Unpaid Sick Leave 1,517,900 315,797 362,415 1,471,282 176,554 Total Governmental Activities $ 8,861,043 6,407,466 1,300,624 13,967,885 1,116,554 46 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 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 31,2012, $3,460,000 of bonds outstanding are considered defeased. Annual Debt Service Requirements to Maturity The annual requirements to amortize all debt outstanding as of December 31, 2012, for governmental activities are as follows: Governmental Activities Year Ending General Obli~ation Bonds December 31, Principal Interest 2013 $ 940,000 381,300 2014 790,000 311,513 2015 510,000 294,813 2016 525,000 282,063 2017 545,000 266,313 2018·2022 3,360,000 1,013,275 2023·2027 3,410,000 534,485 2028-2030 2,200,000 116,873 $ 12,280,000 3,200,635 7. Employee Retirement Systems A. Illinois Municipal Retirement Plan Description The Village's defined benefit pension plan for regular employees provides retirement and disability benefits, post-retirement increases, and death benefits to plan members and beneficiaries. The Village plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained on-line at www.imrf org. Funding Policy As set by statute, your employer regular plan members are required to contribute 4.50% of their annual covered salary. The statute requires 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 2012 was 13.02%. 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 retirem~nt benefits rate is set by statute. 47 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 7. Employee Retirement Systems (Cont.) A. Illinois Municipal Retirement (Cont.) Annual Pension Cost The required contribution for calendar year 2012 was $1,097,798. Three-Year Trend Information for the Regular Plan Annual Percentage Fiscal Pension ofAPC Year Cost (APC) Contributed 12/3112012 $ 1,097,798 100% 12/3112011 1,080,295 100% 12/3112010 1,064,445 100% Net Pension Obligation 0 0 0 The required contribution for 2012 was determined as part of the December 31, 2010 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2010 included (a) 7.5% investment rate of return (net of administrative and direct investment expenses); (b) projected salary increases of 4.00% a year, attributable to inflation; (c) additional projected salary increases ranging from 0.4% to 10% per year depending on age and service, attributable to seniority/merit; and (d) post-retirement benefit increases of 3% annually. The actuarial value of the Village's regular plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and market value of assets. The Village's regular plan's unfunded actuarial accrued liability at December 31, 2010 is being amortized as a level percentage of payroll on an open 30 year basis. Funded Status and Funding Progress As of December 31,2012, the most recent actuarial valuation date, the regular plan was 72.10% funded. The actuarial liability for benefits was $27,990,982 and the actuarial value of assets was $20,181,453, resulting in an underfunded actuarial accrued liability (UAAL) of $7,809,529. The covered payroll for calendar year 2012 (annual payroll of active employees covered by the plan) was $8,431,628 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 the Financial Statements, presents multi-year trend information about whether the actuarial value of plan assets in increasing or decreasing overtime relative to the actuarial accrued liability for benefits. Defined Benefit Pension Plans for Public Safety Employees The information included in sections B through F pertaining to the Village's Police and Firefighters' pension 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 31,2012. 48 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 7. Employee Retirement Systems (Cont.) B. Police Pension Plan Description Police sworn personnel are covered by the Police Pension Plan, which is a defined benefit single- employer pension plan. Although this is a single-employer pension plan, the defined benefits and employee and employer contributions levels are governed by Illinois Compiled Statutes and may be amended only by the Illinois legislature. The Village accounts for the Plan as a pension trust fund. The Plan does not issue a stand-alone financial report. The Police Pension Plan membership consisted of: Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but Not Yet Receiving Them Current Employees Vested Nonvested Total 33 53 --.l2 The Police Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of 2.5% of final salary for each year of service up to 30 years, to a maximum of 75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced benefit. Effective for police employees hired after January 1, 2012, the normal 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 pensionable salary shall not exceed $106,800; however, effective January 1, 2012, that amount shall annually thereafter be increased by the lesser of (1) 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 50% of final salary or the employee's retirement benefit. Employees disabled in the line of duty receive 65% of final salary. The monthly pension of a police officer who retired with 20 or more years of service after January 1, 1977 is increased annually, following the first anniversary date of retirement and paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% annually thereafter. 49 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 7. Employee Retirement Systems (Cont.) B. Police Pension (Cont.) 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 fmance 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 Police Pension Plan is fully funded. Actuarial valuations are performed annually. Annual Pension Cost and Net Pension Asset At December 31, 2012, the Village's annual pension cost was $2,192,541. The Village's actual contribution was $2,192,860. For a description of the significant actuarial assumptions, see "Significant Actuarial Assumptions. " The net pension asset at December 31,2012 was $255,859, comprised of the following components: Annual Required Contribution (ARC) $ 2,198,690 Interest on the Net Pension Asset (17,888) Adjustment on the ARC 11,739 Annual Pension Cost 2,192,541 Contributions Made 2,192,860 Increase in Pension Asset 319 Pension Asset at January 1, 2012 255,540 Pension Asset at December 31, 2012 $ 255,859 The net pension asset of $255,859 is reported by the Village in the government-wide Statement of Net Position at December 31, 2012. Three-Year Trend Inform ation for the Police Pension Plan Annual Percentage Fiscal Pension ofAPC Net Pension Year Cost ~APC2 Contributed Asset 12/3112012 $ 2,192,541 100.01% 255,859 12/3112011 2,140,865 102.80% 255,540 12/3112010 2,035,302 101.40% 194,812 Reserves and Concentration of Investments There are no assets legally reserved for purposes other than the payment of plan member benefits. There are no long-term contracts for contributions. There are no investments (other than those issued or guaranteed by the U. S. government) that represent 5% or more of net assets available for benefits. 50 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 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 Terminated Employees Entitled to Benefits but Not Yet Receiving Them Current Employees Vested Nonvested Total 22 38 .2l The Firefighters' Pension Plan provides retirement benefits as well as death and disability benefits. Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to receive an annual retirement benefit of one-half of the salary attached to the rank held in the fire service on the last day of service. The pension is increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years, to a maximum of 75% of such salary. Employees with at least 10 years but less than 20 years of credited service may retire at or after age 60 and receive a reduced retirement benefit. Effective for firefighters hired after January 1, 2012, the normal 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 pensionable salary shall not exceed $106,800; however, effective January 1, 2012, that amount shall annually thereafter be increased by the lesser of (l) 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 firefighter who retired with 20 or more years of service after January 1, 1977 is increased annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the original pension and 3% annually thereafter. 51 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 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, 2012, the Village's annual pension cost was $1,997,207. The Village's actual contribution was $2,026,299. For a description of the significant actuarial assumptions, see "Significant Actuarial Assumptions." The net pension asset at December 31,2012 was $293,195, comprised of the following components: Annual Required Contribution (ARC) $ 2,003,757 Interest on the Net Pension Asset (18,487) Adjustment on the ARC 11,937 Annual Pension Cost 1,997,207 Contributions Made 2,026,299 Increase in Pension Asset 29,092 Pension Asset at January 1,2012 264z103 Pension Asset at December 31,2012 $ 293,195 The net pension asset of $293,195 is reported by the Village in the government-wide Statement of Net Position at December 31,2012. Three-Year Trend Information for the Firefighters' Police Pension Plan Annual Percentage Fiscal Pension ofAPC Net Pension Year Cost ~APC2 Contributed Asset 12/3112012 $ 1,997,207 101.50% 293,195 12/3112011 1,965,831 103.50% 264,103 12/3112010 1,902,270 100.80% 195,836 Reserves and Concentration of Investments There are no assets legally reserved for purposes other than the payment of plan member benefits. There are no long-term contracts for contributions. There are no investments (other than those issued or guaranteed by the U. S. government) that represent 5% or more of net assets available for benefits. 52 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 7. Employee Retirement Systems (Cont.) D. Summary of Significant Accounting Policies and Plan Asset Matters The fmancial statements for the Police and Firefighters' Pension Trust Funds are prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in which the contributions are due. Employer contributions are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Administrative costs for the Police and Firefighters' Pension Plans are financed primarily through investment earnings. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. E. Funded Status and Funding Progress -Pension Trust Funds The funded status of the Police and Firefighters' Pension Plans as of December 31, 2011, the most recent actuarial valuation date, is as follows: Actuarial Unfunded UAALasa Actuarial Accrued (Overfunded) Percentage Value of Liability (AAL) AAL Funded Covered of Covered Assets Entry Age (UAAL) Ratio Payroll Payroll Plan (al (b) ~b-al (a/bl (cl (b-al/c Police Pension $ 45,414,255 73,221,793 27,807,538 62.02% 5,963,940 466.26% Firefighters' Pension 35,572,790 58,315,678 22,742,888 61.00% 5,076,411 448.01% The Schedules of Funding Progress, presented as Required Supplementary Information following the Notes to the Financial Statements, present multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. F. Significant Actuarial Assumption The information presented in the notes and the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Illinois Municipal Police Firefighters' Retirement Pension Pension Actuarial Valuation Date December 31, December 31, December 31, 2012 2011 2011 Actuarial Cost Method Entry Age Entry Age Entry Age Normal Normal Normal Asset Valuation Method Five-Year Five-Year Three-Year Smoothed Smoothed Smoothed Market Value Market Value Market Value 53 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 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 SenioritylMerit (e) Postretirement Benefit Increases Illinois Municipal Retirement Level Percentage of Projected Payroll -Open 30 Year Basis 30 7.50% Compounded Annually 4.00% Compounded Annually 0.4% to 10.0% 3.00% 54 Police Pension Level Precentage of Projected Payroll -Closed Basis 28 7.00% Compounded Annually 5.50% Compounded Annually Firefighters' Pension Level Precentage of Projected Payroll -Closed Basis 28 7.00% Compounded Annually 5.00% Compounded Annually (Note: Separate Information for (b) and (c) not available) 3.00% 3.00% Compounded Compounded Annually Annually VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 7. Employee Retirement Systems (Cont.) F. Significant Actuarial Assumption (Cont.) Statement of Fiduciary Net Position -Pension Trust Funds Assets Cash and Cash Equivalents Investments U.S. Government and Agency Obligations Open-end Mutual Funds Receivables Pension Contributions Interest Due from Village Total Assets Liabilities Accounts Payable Due to Village Total Liabilities Net Position Held in Trust for Pension Benefits Police Firefighters' Pension Pension $ 4,983,960 205,535 20,993,534 17,044,307 20,770,894 21,265,118 1,769,840 1,519,078 17,839 92,196 3,762 48,536,067 40,129,996 26,452 16,100 5,539 31,991 16,100 $ 48,504,076 40,113,896 Schedules of Funding Progress for the Plans are presented in the Required Supplementary Information Section. 55 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 7. Employee Retirement Systems (Cont.) G. Individual Plan Financial Statements (Cont.) H. Statement o/Changes in Fiduciary Net Position -Pension Trust Funds 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 Position Net Position Beginning Ending Other Post-Employment Benefits (OPEB) Plan Description $ Police Pension 2,187,321 672,100 2,859,421 3,080,789 360,711 (125,158) 3,316,342 6,175,763 41,891 2,114,471 2,156,362 4,019,401 44,484,675 $ 48,504,076 Firefighters' Pension 2,026,299 505,408 2,531,707 2,954,370 469,713 (188,250) 3,235,833 5,767,540 1,226,433 1,226,433 4,541,107 35,572,789 40,113,896 In addition to providing the pension benefits described above, the Village provides post-employment health care benefits (OPEB) for retired employees. The Village of Buffalo Grove Group Health Plan (the Plan) is a single-employer defmed benefit healthcare plan administered by the Village. The Plan provides medical and dental insurance benefits to eligible retirees and their dependents. The benefits, benefit levels, employee contributions and employer contributions are governed by the Village Board and can only be amended by the Village Board. The Plan is not accounted for as a trust fund as an irrevocable trust has not been established. The Village does not issue a Plan fmancial report. 56 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 7. Employee Retirement Systems (Cont.) H. Other Post-Employment Benefits (OPEB) (Cont.) Funding Policy The contribution requirements of plan members and the Village are established and may be amended by the Village Board and are detailed in the "Plan Document and Summary Plan Description." The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2012, the Village contributed $218,831 to the Plan, including $218,831 for current premiums (approximately 60% of total premiums). Plan members receiving benefits contributed $334,457, which is 100% of the total premiums, through their required contribution of $583.62 per month for retiree-only coverage, $1,178.91 per month for retiree and dependent coverage, and $2,083.50 per month for family coverage. AnnualOPEB 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 funding excess) over a period not to exceed thirty years. The following table shows the components of the Village's annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the Village's net OPEB obligation to the Plan: Annual Required Contribution (ARC) $ 267,125 Interest on the Net OPEB Obligation 16,048 Adjustment to Annual Required Contribution {10,6991 Annual OPEB cost 272,474 Village Contributions Made 218,831 Increase in OPEB Liability 53,643 Net OPEB Liability at January 1,2012 3202966 Net OPEB Liability at December 31,2012 $ 374,609 The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2012 was as follows: Annual of Annual Fiscal OPEB OPEB cost NetOPEB Year Cost Contributed Obligation 12/3112012 $ 272,474 80.30% 374,609 12/3112011 126,877 53.80% 320,966 12/3112010 125,916 54.20% 262,328 57 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 7. Employee Retirement Systems (Cont.) H. Other Post-Employment Benefits (OPEB) (Cont.) Funding Status and Funding Progress As of December 31, 2012, the Plan was 100% unfunded. The actuarial accrued 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 $18,429,698, and the ratio of the VAAL to the covered payroll was 23.74%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as Required Supplementary Information following the Notes to the Financial Statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the December 31, 2012 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 VAAL 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 lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Village's attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the Village. Northwest Water Commission (NWWC) The Village's water purchase contract with the Northwest Water Commission (Note 11.B) provides that each member is liable for its proportionate share of any costs arising from defaults in payment obligations by other members. 58 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 8. Contingent Liabilities (Cont.) Solid Waste Agency of Northern Cook County (SWANCC) The Village's contract with the Solid Waste Agency of Northern Cook County (Note I1.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, 2012 are shown as follows: Receivable Fund Pa~able Fund Amount General Fund Police Pension $ 5,539 Buffalo Grove Golf Course General Fund 1,547 Arboretum Golf Course General Fund 6,223 Internal Service Fund General Fund 449,650 Fire Pension Fund General Fund 3,762 Interfund balances arise during the normal course of business and are generally closed by routine transfers of cash between funds. B. Transfers In/Out Interfund transfers during the year ended December 31, 2012 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 General Fund General Fund General Fund The purpose of the significant transfers is as follows: Amount $ 705,000 200,000 438,980 677,152 217,000 52,500 The General Fund transferred $677,152 for capital projects to the Facilities Development Capital Projects Fund; $438,980 for street maintenance to the Motor Fuel Tax Fund; $223,223 to the Arboretum Golf Course Fund for operations; $54,047 to the Buffalo Grove Golf Course Fund for operations; and $449,650 to the Health Insurance Fund for operations. The Motor Fuel Tax Fund transferred $755,336 capital projects to the Street Maintenance Fund. The Waterworks and Sewerage Fund transferred $705,000 for administrative expenses to the General Fund and $200,000 for debt service to the Facilities Development Debt Service Fund. 59 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 10. Risk Management The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and injuries to the Village's employees. The Village currently reports all its risk management activities related to its participation in the Intergovernmental Risk Management Agency in its General Fund and Waterworks and Sewerage Fund. Beginning in fiscal year 2006, the Village elected to self-insure its health claims program. The Village accounts for this activity in an internal service fund -the Health Insurance Reserve Fund. The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois, which have formed an association under the Illinois Intergovernmental Cooperation Statute to pool its risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers' compensation claim administration/litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The Village's payments to IRMA are displayed on the 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 eligible revenue as defined in the by-laws of IRMA, experience modification factors based on past member loss experience, and optional deductible credits. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. There has been no reduction in the Village's insurance coverage for any of its programs since the prior fiscal year. Settlements have not exceeded insurance coverage for the current year or prior three fiscal years. The Village reports its risks of loss for health claims in the Health Insurance Reserve Fund, which is reported as an internal service fund. The self-insurance liability includes an estimate of incurred but not reported claims through December 31, 2011. As of January 1, 2012, the Village has obtained commercial insurance coverage for health and related benefits. All outstanding claims from prior to January 1, 2012, were settled during 2012. A reconciliation of the total claims liability for 2010 through 2012 is below: Unpaid Claims Liability -Beginning of Year Claims Incurred Claims Paid Unpaid Claims Liability -End of Year 60 2012 $ 398,094 10,082 {408,176 l $ 2011 2010 334,173 268,746 3,743,361 3,885,636 {3,679,44O l {3,820,209l 398,094 334,173 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 11. Joint Ventures A. Solid Waste Agency of Northern Cook County (SWANCC) Description of Joint Venture The Village is a member of the Solid Waste Agency of Northern Cook County (the Agency), which consists of 23 municipalities. The Agency is a municipal corporation and public body politic and corporate established pursuant to the Constitution of the State of Illinois and the Intergovernmental Cooperation Act of the State of Illinois, as amended (the Act). The Agency is empowered under the Act to plan, construct, finance, operate and maintain a solid waste disposal system to serve its members. The members of the Agency and their percentage shares based on a formula contained in the Agency agreement are: % Share % Share Arlington Heights 11.13 Mount Prospect 8.05 Barrington 1.65 Niles 3.44 Buffalo Grove 6.37 Palatine 9.14 Elk Grove Village 5.77 Park Ridge 5.08 Evanston 7.91 Prospect Heights 1.38 Glencoe 1.53 Rolling Meadows 2.90 Glenview 4.77 Skokie 8.15 Hoffinan Estates 3.71 South Barrington 0.70 Inverness 1.15 Wheeling 4.06 Kenilworth 0.81 Wilmette 4.23 Lincolnwood 1.84 Winnetka 3.09 Morton Grove 3.14 100.00 These percentage shares are subject to change in future years based on the population of the municipalities. The members form a contiguous geographic service area which is located northwest of downtown Chicago. Under the Agency Agreement, additional members may join the Agency upon the approval of each member. The Agency is governed by a Board of Directors, which consists of one appointed Mayor or President from each member municipality. Each Director has an equal vote. The officers of the Agency are appointed by the Board of Directors. The Board of Directors determines the general policy of the Agency, makes all appropriations, approves contracts, adopts resolutions providing for the issuance of bonds or notes by the Agency, adopts by-laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the Agency Agreement or the by-laws. The Executive Committee of the Agency consists of seven members elected by the Board of Directors. Each member is entitled to one vote on the Executive Committee. The Executive Committee may take any action not specifically reserved to the Board of Directors by the Act, the Agency Agreement or the Bylaws. 61 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 11. Joint Ventures (Cont.) A. Solid Waste Agency of North em Cook County (SWANCC) (Cont.) Summary Financial Information of Joint Venture Summary of Financial Position as of April 30, 2012: Current Assets Restricted Assets Capital Assets Other Assets $ 3,426,814 2,939,109 10,753,169 39,921 $ 17,159,013 Liabilities and Net Assets Current Liabilities Long-term Liabilities Total Liabilities Net Assets $ 4,517,395 3,641,584 8,158,979 9,000,034 $ 17,159,013 Summary of Revenue, Expenses and Changes in Net Assets for the year ended April 30, 2012: Operating Revenues Operating Expenses Operating Income Nonoperating Expenses Change in Net Assets Net Assets May 1 April 30 $ 15,681,910 14,695,938 985,972 (171,098) 814,874 8,185,160 $ 9,000,034 Complete financial statements for SWANCC can be obtained from the Agency's administrative office at 2700 Patriot Boulevard, Suite 110, Glenview, Illinois 60026. The Agency's bonds are revenue obligations. They are limited obligations of the Agency with a claim for payment solely from and secured by a pledge of the revenues of the System and amounts in various funds and accounts established by Agency resolutions. The bonds are not a debt of any member. The Agency has no power to levy taxes. Revenues of the System consist of (a) all receipts derived from Solid Waste Disposal Contracts or any other contracts for the disposal of waste; (b) all income derived from the investment of monies; and (c) all income, fees, service charges and all grants, rents and receipts derived by the Agency from the ownership and operation of the system. The minimum annual cost includes operation and maintenance of the System as well as project costs. 62 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 11. Joint Ventures (Cont.) A. Solid Waste Agency of Northern Cook County (SWANCC) (Cont.) Summary Financial Information of Joint Venture (Cont.) The Agency covenants to establish fees and charges sufficient to provide revenues to meet all its requirements. The Agency has entered into Solid Waste Disposal Contracts with the member municipalities. The Contracts are irrevocable and may not be terminated or amended except as provided in the Contract. Each member is obligated, on a "take or pay" basis, to purchase or in any event to pay for a minimum annual cost of the System. The minimum annual cost includes operation and maintenance of the System as well as project costs. The obligation of the Village to make all payments as required by this Contract is unconditional and irrevocable, without regard to performance or nonperformance by the Agency of its obligations under this Contract. The payments required to be made by the Village under this Contract shall be required to be made solely from revenues to be derived by the Village from the operation of the Village's System. The Village is not prohibited by the Contract from using any other available funds to make the payments required by the Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. In accordance with the joint venture agreement, the Village remitted $855,091 to SWANCC for the year ended December 31,2012. 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. 63 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 11. Joint Ventures (Cont.) B. Northwest Water Commission (NWWC) (Cont.) Description of Joint Venture (Cont.) The four members of the Commission and their percentage shares as of the date of this report are as follows: Village of Arlington Heights Village of Buffalo Grove Village of Palatine Village of Wheeling % Share 33.64 18.78 30.71 16.87 100.00 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 aU appropriations, approves contracts for sale or purchase of water, adopts resolutions providing for the issuance of bonds or notes by the Commission, adopts by- laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in the Commission Agreement or the by-laws. Summary Financial Information of Joint Venture for the fiscal year ended April 30, 2012: Current Assets Restricted Assets Capital Assets Other Assets $ 2,707,272 11,433,511 31,709,348 36,780 $ 45,886,911 64 Liabilities and Net Assets Current Liabilities Long-term Liabilities Total Liabilities Net Assets $ 3,105,612 2,165,112 5,270,724 40,616,187 $ 45,886,911 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31,2012 11. Joint Ventures (Cont.) B. Northwest Water Commission (NWWC) (Cont.) Description of Joint Venture (Cont.) Operating Revenues Operating Expenses Operating Income Non -Operating Expenses Change in Net Assets Net Assets May 1 April 30 $ 10,006,504 8,537,722 1,468,782 (120,046) 1,348,736 39,267,451 $ 40,616,187 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. 65 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 11. Joint Ventures (Cont.) B. Northwest Water Commission (NWWC) (Cont.) Description of Joint Venture (Cont.) The payments required to be made by the Village under this Contract shall be required to be made solely from revenues to be derived by the Village from the operation of the Village's System. The Village is not prohibited by the Contract from using any other available funds to make the payments required by the contract. The Contract shall not constitute an indebtedness of the Village within the meaning of any statutory or constitutional limitation. The obligation of the Village to make payments required by this Contract from revenues of the Village's System shall be payable from the operation and maintenance account of the Village's System Fund and from all other accounts of the Village's System Fund in which there are available funds. In accordance with the joint venture agreement, the Village remitted $1,728,612 to NWWC for the year ended December 31, 2012. The Village's equity interest in NWWC was $7,327,160 at December 31, 2012. The Village's net investment and its share of the operating results of NWWC are recorded in the Village's Waterworks and Sewerage Fund. Commitments to the Northwest Water Commission (NWWC) The Village has committed to retire a portion of the outstanding debt of the Northwest Water Commission of approximately $3 million. These amounts have been calculated using the Village's current allocation percentage of 18.45%. 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 enabling it to provide reasonable security regarding such employees' health needs during retirement, by providing increased flexibility in its personnel management systems, and by assisting in the attraction and retention of competent personnel. The Village adopted the Plan in the form of the ICMA Retirement Corporation's VantageCare Retiree Health Savings Plan. The assets of the Plan will be held in a trust, with the Village serving as trustee, for the exclusive benefit of the plan participants and their beneficiaries. 13. Pledged Revenues The Village has pledged a portion of future sales tax revenues to a local retailer. In order to increase its competitiveness in the marketplace by establishing a single-order acceptance point for all its credit sales, the local retailer entered into a municipal sales tax incentive agreement with the Village, where the Village will pay to the retailer, a portion of the municipal component of the sales tax revenue generated by the retailer from credit sales as provided in the agreement. The agreement commenced November 2000 (first sales tax year), was amended in March 2003 and August 2009, and terminates in calendar year 2020. 66 VILLAGE OF BUFFALO GROVE, ILLINOIS Notes to the Financial Statements December 31, 2012 13. Pledged Revenues (Cont.) The terms of the agreement indicate that beginning in November 2000, the Village and the retailer shall distribute on a monthly basis, the municipal sales taxes resulting from taxable credit sales with single-order acceptance at the retailer's property and received by the Village in the following amounts: • For the first sales tax year through calendar year 2010, 80% to the retailer and 20% to the Village, in addition to any interest accrued on such amounts. For calendar years 2012 through 2020, 75% to the retailer and 25% to the Village; and • Amended in August 2009 to reflect that for calendar years 2010 through 2020, 60% to the retailer and 40% to the Village. Notwithstanding the terms stated above, the minimum municipal sales taxes to be retained by the Village shall be as follows: • No less than $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 fell below the minimum 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 $439,810. Municipal sales taxes totaling $48,786 was due to the local retailer as of December 31, 2012, and is included in accounts payable on the Statement of Net Position and Governmental Funds Balance Sheet. 14. Operating Lease Commitments The Village has commitments with non-Village entities to lease certain property. Future minimum rental commitments as of December 31, 2012 are as follows: Year Ending December 31 , Amount 2013 $ 114,720 2014 117,014 2015 119,354 2016 121,741 2017 124,176 2018-2022 659,143 2023-2025 378,836 $ 1,634,984 67 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, 2012 Revenues Charges for Services Licenses and Permits Fines and Fees Property Taxes Other Taxes Investment Income Miscellaneous Total Revenues Expenditures Current General Government Public Safety Public Works Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources (Uses) Proceeds from Sale of Assets Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance Beginning Ending See Note to Required Supplementary Information. Original/Final Appropriations $ 7,643,052 7,643,052 5,818,721 23,395,807 7,102,929 36,317,457 (28,674,405) (1,800,000} (1,800,000} $ (30,474,405} 68 Variance from Final Final Budget Budget Actual Over (Under) 1,133,127 1,084,881 (48,246) 279,220 275,434 (3,786) 1,382,650 1,283,956 (98,694) 11,656,497 11,797,071 140,574 17,414,360 18,324,094 909,734 131,663 131,804 141 804,583 1,014,090 209,507 32,802,100 33,911,330 1,109,230 4,863,019 4,395,807 (467,212) 21,245,528 21,381,809 136,281 6,320,202 6,584,263 264,061 32,428,749 32,361,879 (66,870) 373,351 1,549,451 1,176,100 45 45 705,000 705,000 (1,005,901} (1,385,632} (379,731} (300,901} (680,587} (379,686} 72,450 868,864 796,414 18,852,175 19,721,039 VILLAGE OF BUFFALO GROVE, ILLINOIS Required Supplementary Information Analysis of Funding Progress December 31, 2012 Illinois Municipal Retirement Fund (b) ((b-a)/c) (a) Actuarial (b)-(a) UAAL as a Actuarial Actuarial Accrued Unfunded (a)/(b) (c) Percentage Valuation Value of Liability (AAL) AAL Funded Covered of Covered Date Assets EntrxAge {UAAq Ratio Pa~rol1 Pa~rol1 2012 $ 20,181,453 27,990,982 7,809,529 72.10 % 8,431,628 92.62 % 2011 20,488,691 28,250,245 7,761,554 72.53 8,361,416 92.83 2010 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 Police Pension Fund (b) ((b-a)/c) (a) Actuarial (b)-(a) UAALasa Actuarial Actuarial Accrued Unfunded (a)/(b) (c) Percentage Valuation Value of Liability (AAL) AAL Funded Covered of Covered Date Assets EntrxAge {UAAL) Ratio Pa~rol1 Pa~roll 2011 $ 45,414,255 73,221,793 27,807,538 62.02 % 5,963,940 466.26 % 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 Fund (b) ((b-a)/c) (a) Actuarial (b)-(a) UAAL as a Actuarial Actuarial Accrued Unfunded (a)/(b) (c) Percentage Valuation Value of Liability (AAL) AAL Funded Covered of Covered Date Assets EntrxAge {UAAL) Ratio Pa~roll Pa~rol1 2011 $ 35,572,790 58,315,678 22,742,888 61.00 % 5,076,411 448.01 % 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. 69 VILLAGE OF BUFFALO GROVE, ILLINOIS Required Supplementary Information Employer Contributions Year Ended December 31, 2012 Illinois Municipal Retirement Fund Actuarial Annual Valuation Required Percentage Date Contribution Contributed 2012 $ 1,097,798 100.0 % 2011 1,080,295 100.0 2010 1,064,445 100.0 2009 967,012 100.0 2008 907,890 100.0 2007 819,958 100.0 2006 800,153 100.0 2005 704,606 100.0 Police Pension Fund Actuarial Annual Valuation Required Percentage Date Contribution Contributed 2012 $ 2,198,690 99.7 % 2011 2,145,917 102.6 2010 2,038,612 101.2 2009 1,754,664 98.2 2008 1,754,664 106.5 2007 1,594,227 98.6 2006 1,429,749 98.1 2005 1,075,170 95.8 Firefighters' Pension Fund Actuarial Annual Valuation Required Percentage Date Contribution Contributed 2012 $ 2,003,757 101.1 % 2011 1,970,913 103.2 2010 1,905,833 100.7 2009 1,506,343 98.9 2008 1,506,343 104.9 2007 1,334,734 100.6 2006 1,297,773 88.3 2005 984,799 103.6 See Note to Required Supplementary Information. 70 VILLAGE OF BUFFALO GROVE, ILLINOIS Required Supplementary Information Other Post-Employment Benefits December 31, 2012 Analysis of Funding Progress Actuarial Valuation Date 12/3112012 12/3112011 12/3112010 $ (a) Actuarial Value of Assets Employer Contributions Fiscal Year Ending 12/3112012 1213112011 12/3112010 (b) Actuarial Accrued Liability (AAL) Entry Age 4,375,822 4,375,822 2,108,079 See Note to Required Supplementary Information. $ (b)-(a) Unfunded AAL (UAAL) 4,375,822 4,375,822 2,108,079 Required Contribution 267,125 122,505 122,505 71 ((b-a)/c) UAALasa (a)/(b) (c) Percentage Funded Covered of Covered Ratio Payroll Payroll % 18,429,698 23.74 % 18,846,443 23.22 21,307,066 9.89 Percentage Contributed 81.92 % 55.70 55.70 VILLAGE OF BUFFALO GROVE, ILLINOIS Note to Required Supplementary Information December 31, 2012 1. Budgetary Basis of Accounting The General Fund Budget is adopted on a basis of accounting consistent with accounting principles generally accepted in the United States of America. 72 COMBINING, INDIVIDUAL FUND, AND CAPITAL ASSET FINANCIAL STATEMENTS AND SCHEDULES GOVERNMENTAL FUND TYPES NONMAJOR GOVERNMENT FUNDS- COMBllaNGSTATEMENTS VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Governmental Funds Combining Balance Sheet December 31, 2012 Special Debt Capital Revenue Service Projects Total Assets Cash and Equivalents $ 6,208,223 20,677 65,254 6,294,154 Receivables Property Taxes 1,600,793 902,301 2,503,094 Motor Fuel Tax 85,898 85,898 Due from Other Funds 155,336 155,336 Total Assets $ 8,050,250 922,978 65,254 9,038,482 Liabilities Accounts Payable and Accrued Liabilities $ 96,832 1,150 279,118 377,100 Due to Other Funds 155,336 155,336 Total Liabilities 96,832 1,150 434,454 532,436 Deferred Inflows of Resources Deferred Property Taxes 1,600,793 902,301 2,503,094 Fund Balances Restricted 6,208,550 19,527 39,962 6,268,039 Assigned 144,075 144,075 Unassigned {409,1621 {409,162 1 Total Fund Balances 6,352,625 19,527 {369,2OO 1 6,002,952 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 8,050,250 922,978 65 2254 9,038,482 73 VILLAGE OF BUFFALO GROVE, ILLINOIS N onmaj or Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2012 Special Debt Capital Revenue Service Projects Total Revenues Charges for Services $ 151,277 151,277 Intergovernmental 1,011,949 1,011,949 Property Taxes 1,585,467 947,869 2,533,336 Other Taxes 1,520 1,520 Investment Income 622 31 653 Miscellaneous 209,590 16,181 225,771 Total Revenues 2,960,425 947,869 16,212 3,924,506 Expenditures Current General Government 696,076 696,076 Public Safety 409,752 409,752 Public Works 3,286,376 3,286,376 Capital Projects 1,561,904 1,561,904 Debt Service Principal 920,000 920,000 Interest and Fiscal Charges 220,885 220,885 Bond Issuance Costs 64,535 64,535 Total Expenditures 4,392,204 1,140~885 1,626,439 7,159,528 Excess (Deficiency) of Revenues over Expenditures {1 ,431,779 1 {193,016 1 {1,61O,2271 {3,235,0221 Other Financing Sources (Uses) Proceeds from Issuance of Debt 6,000,000 6,000,000 Premium on Issuance of Debt 91,669 91,669 Transfers In 438,980 200,000 1,277,152 1,916,132 Transfers Out {600,0001 {600,0001 Total Financing Sources (Uses) 5,930,649 200,000 1,277~152 7,407,801 Net Change in Fund Balances 4,498,870 6,984 (333,075) 4,172,779 Fund Balances Beginning 1,853,755 12,543 {36,125 1 1,830,173 Ending $ 6,352,625 19,527 {369,2OO 1 6,002,952 74 NONMAJOR SPECIAL REVENUE FUNDS Illinois Municipal Retirement Fund -to account for revenues derived from a separate property tax levy and employee contributions which are subsequently paid to the State-sponsored Illinois Municipal Retirement Fund. Motor Fuel Tax Fund -to account for allotment of motor fuel taxes and to accumulate monies for payment of the $6,000,000, 2.00%-2.75% General Corporate Purpose Bond Series 2012. These allotments are received from the State of Illinois and are financed by a specific annual property tax levy and by transfers from the General Fund. Parking Lot Fund -to account for revenues derived from daily parking fees along with the sale of bimonthly parking passes, less expenditures required to maintain the lots at the Village's mass transit train station site. VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2012 Illinois Motor Municipal Fuel Parking Retirement Tax Lot Total Assets Cash and Equivalents $ 217,443 5,841,526 149,254 6,208,223 Receivables Property Taxes 1,600,793 1,600,793 Motor Fuel Tax 85,898 85,898 Due from Other Funds 155,336 155,336 Total Assets $ 1,818,236 6,082,760 149,254 8,050,250 Liabilities Accounts Payable and Accrued Liabilities 76,653 15,000 5,179 96,832 Deferred Inflows of Resources Deferred Property Taxes 1,600,793 1,600,793 Fund Balances Restricted 140,790 6,067,760 6,208,550 Assigned 144,075 144,075 Total Fund Balances 140,790 6,067,760 144,075 6,352,625 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,818 z236 6 z082,760 149,254 8,050,250 75 VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2012 Illinois Motor Municipal Fuel Parking Retirement Tax Lot Total Revenues Charges for Services $ 151,277 151,277 Intergovernmental 1,011,949 1,011,949 Property Taxes 1,585,467 1,585,467 Other Taxes 1,520 1,520 Investment Income 622 622 Miscellaneous 209,590 209,590 Total Revenues 1,586,987 1,222,161 151,277 2 z960,425 Expenditures General Government 542,758 153,318 696,076 Public Safety 409,752 409,752 Public Works 640,003 2,646,373 3,286,376 Total Expenditures 1,592,513 2,646,373 153,318 4,392,204 Excess (Deficiency) of Revenues over Expenditures ~5,5262 ~1,424,2122 ~2,0412 ~lz431,7792 Other Financing Sources (Uses) Proceeds from Issuance of Debt 6,000,000 6,000,000 Premium on Issuance of Debt 91,669 91,669 Transfers In 438,980 438,980 Transfers Out ~600,0002 ~600,0002 Total Other Financing Sources (Uses) 5,930,649 5,930,649 Net Change in Fund Balances (5,526) 4,506,437 (2,041) 4,498,870 Fund Balances Beginning 146,316 I z561,323 146,116 1,853,755 Ending $ 140,790 6,067,760 144,075 6,352,625 76 VILLAGE OF BUFFALO GROVE, ILLINOIS Illinois Municipal Retirement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31,2012 Revenues Property Taxes Other Taxes Investment Income Total Revenues Expenditures General Government Public Safety Public Works Total Expenditures Net Change in Fund Balance Fund Balance Beginning Ending Original/Final A ppropriations $ 1,600,793 1,600,793 536,789 405,246 632,965 1,575,000 $ 25,793 77 Final Budget Actual 1,566,868 1,585,467 1,520 50 1,566,918 1,586,987 521,562 542,758 393,750 409,752 615,010 640,003 1,530,321 1,592,513 36,597 (5,526) 146,316 140,790 VILLAGE OF BUFFALO GROVE, ILLINOIS Motor Fuel Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31, 2012 Revenues Intergovernmental Investment Income Miscellaneous Total Revenues Expenditures Public Works Excess (Deficiency) of Revenues over Expenditures Other Financing Sources (Uses) Proceeds from Issuance of Debt Premium on Issuance of Debt Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance Beginning Ending 78 OriginallFinal Final AEEroEriations Budget Actual $ 985,530 1,011,949 200 622 187,582 209,590 1,173,312 1,222,161 5,700,000 1,700,000 2,646,373 {5,700,0001 {526,688 1 {I,424,2121 6,000,000 91,669 608,820 438,980 {600,0001 {600,0001 8,820 5,930,649 $ {5,700,0001 {517,8681 4,506,437 1,561,323 6,067z760 VILLAGE OF BUFFALO GROVE, ILLINOIS Parking Lot Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31, 2012 Revenues Charges for Services Expenditures General Government Net Change in Fund Balance Fund Balance Beginning Ending 79 OriginallFinal Final Appropriations Bud~et Actual $ 163,870 151,277 257,245 163,715 153,318 $ £257,245 2 155 (2,041) 146,116 144,075 NONMAJOR DEBT SERVICE FUND Facilities Development Fund -to accumulate monies for payment of the $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. VILLAGE OF BUFFALO GROVE, ILLINOIS Facilities Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31,2012 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 Ending 80 OriginallFinal Final Appropriations Budget Actual $ 1,321,301 938,696 947,869 120 1,321,301 938,816 947,869 2,000,000 920,000 920,000 232,500 220,570 220,885 2,232,500 1,140,570 1,140,885 (911,199) (201,754) (193,016) 200,000 200,000 $ ~911,1992 ~1,7542 6,984 12,543 19,527 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, 2012 Street Facilities Maintenance DeveloEment Total Assets Cash and Equivalents $ 65,254 65,254 Liabilities Accounts Payable and Accrued Liabilities $ 253,826 25,292 279,118 Due to Other Funds 155,336 155,336 Total Liabilities 409,162 25,292 434,454 Fund Balances Restricted 39,962 39,962 Unassigned {409,1621 {409,1621 Total Fund Balance {409,162 1 39,962 {369,2OO 1 Total Liabilities and Fund Balances $ 65,254 65,254 81 VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended December 31, 2012 Street Facilities Maintenance Develo,Ement Total Revenues Investment Income $ 31 31 Miscellaneous 16,181 16,181 Total Revenues 16,212 16,212 Expenditures Capital Proj ects 764,956 796,948 1,561,904 Bond Issuance Costs 10,000 54,535 64,535 Total Expenditures 774,956 851,483 1,626,439 Excess (Deficiency) of Revenues over Expenditures (774,956) (835,271) (1,610,227) Other Financing Sources Transfers In 600,000 677,152 1,277,152 Net Change in Fund Balances (174,956) (158,119) (333,075) Fund Balances Beginning {234,2062 198,081 {36,125 2 Ending $ {409,1622 39,962 {369,2OO 2 82 VILLAGE OF BUFFALO GROVE, ILLINOIS Street Maintenance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31,2012 Revenues Investment Income Miscellaneous Total Revenues Expenditures Capital Projects Bond Issuance Costs Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance Beginning Ending 83 OriginallFinal Appropriations $ 1,305,454 1,305,454 (1,305,454) {1,305,4 54 2 Final Budget 400 134,533 134,933 1,048,247 1,048,247 (913,314) 600,000 {313,3142 Actual 764,956 10,000 774,956 (774,956) 600,000 (174,956) {234,206) {409,162) VILLAGE OF BUFFALO GROVE, ILLINOIS Facilities Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Year Ended December 31, 2012 Revenues Investment Income Miscellaneous Total Revenues Expenditures Capital Projects Bond Issuance Costs Total Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources Transfers In Net Change in Fund Balance Fund Balance Beginning Ending 84 OriginallFinal Final AEEroEriations Budget Actual $ 31 16,181 16,212 985,000 412,013 796,948 54,535 985,000 412,013 851,483 (985,000) (412,013) (835,271) 412,013 677,152 $ {985,0002 (158,119) 198,081 39,962 ENTERPRISE FUNDS Major Funds Waterworks and Sewerage Fund -to account for the provision of water and sewer services to all residential and commerciaVindustrial customers of the Village. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, related debt service and billing and collection. Arboretum Golf Course Fund -to account for the operation of the Arboretum Golf Course. All activities necessary to provide the service are accounted for in this fund including but not limited to, administration, operations, maintenance and related debt service. Nonmajor Funds Buffalo Grove Golf Course Fund -to account for the operation of the Buffalo Grove Golf Course. All activities necessary to provide the service are accounted for in this fund including, but not limited to, administration, operations, maintenance and related debt service. Refuse Service Fund -to account for the provision of refuse disposal services to all customers of the Village. All activities necessary to provide such services are accounted for in this fund. VILLAGE OF BUFFALO GROVE, ILLINOIS Waterworks and Sewerage Fund (Major Fund) Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses and Transfers -Budget and Actual (Budgetary Basis) Year Ended December 31, 2012 Operating Revenues Water and Sewerage Charges Connection and Recapture Fees Total Operating Revenues Operating Expenses Excluding Depreciation Less: Capital Assets Capitalized Total Operating Expenses Operating Loss (Budgetary Basis) Nonoperating Revenues Investment Income Transfers Transfers Out Net Loss (Budgetary Basis) 85 Original/Final Appropriations $ 12,762,572 12,762,572 (12,762,572) (905,000) $ (13,667,572) Final Budget Actual 8,060,111 7,409,420 27,000 55,450 8,087,111 7,464,870 10,479,463 8,205,450 (487,894) 10,479,463 7,717,556 (2,392,352) (252,686) 31,675 28,573 (885,000) (905,000) (3,245,677) (1,129,113) VILLAGE OF BUFFALO GROVE, ILLINOIS Arboretum Golf Course Fund (Major Fund) Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses and Transfers -Budget and Actual (Budgetary Basis) Year Ended December 31, 2012 Operating Revenues Daily Greens Fees and Memberships Merchandise Sales Cart, Club and Other Rentals Miscellaneous Total Operating Revenues Operating Expenses Excluding Depreciation Golf Operations Cost of Sales -Pro Shop Total Operating Expenses Excluding Depreciation Operating Loss (Budgetary Basis) Transfers Transfers In Net Loss (Budgetary Basis) 86 OriginallFinal Appropriations $ 1,284,000 54,000 1,338,000 (1,338,000) $ (1,338,000) Final Budget Actual 810,000 772,329 64,800 47,666 251,700 232,941 45,200 45,182 1,171,700 1,098,118 1,196,806 1,266,132 45,000 46,397 1,241,806 1,312,529 (70,106) (214,411) 70,106 217,000 (214,411) VILLAGE OF BUFFALO GROVE, ILLINOIS Nonmajor Enterprise Funds Combining Statement of Net Position December 31, 2012 Buffalo Grove Refuse Golf Course Service Total Assets Current Cash and Equivalents $ 368,986 368,986 Receivables 86,599 86,599 Pro Shop Inventory 22,156 22,156 Total Current Assets 22,156 455,585 477,741 Noncurrent Capital Assets, Net of Accumulated Depreciation Land 978,776 978,776 Buildings 248,538 248,538 Total Noncurrent Assets 1,227,314 1,227,314 Total Assets 1,249,470 455,585 1,705,055 Liabilities Current Accounts Payable and Accrued Liabilities 24,483 24,483 Due to Other Fund 1,547 1,547 Total Liabilities 26,030 26,030 Net Position Net Investment in Capital Assets 1,227,314 1,227,314 Unrestricted ~3,8741 455,585 451,711 Total Net Position $ 1,223,440 455,585 1,679,025 87 VILLAGE OF BUFFALO GROVE, ILLINOIS N onmaj or Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Net Position Year Ended December 31, 2012 Buffalo Grove Refuse Golf Course Service Total Operating Revenues Daily Greens Fees and Memberships $ 758,884 758,884 Merchandise Sales 77,185 77,185 Cart, Club and Other Rentals 209,328 209,328 Driving Range Fees 51,409 51,409 SW ANCC User Fees 1,050,386 1,050,386 Miscellaneous 26,790 26,790 Total Operating Revenues 1,123,596 1,050,386 2,173,982 Operating Expenses Excluding Depreciation Golf Operations 1,108,473 1,108,473 Cost of Sales -Pro Shop 48,725 48,725 Refuse Operations 855,091 855,091 Other 19,275 19,275 Total Operating Expenses Excluding Depreciation 1,157,198 874,366 2,031,564 Operating Income (Loss) before Depreciation (33,602) 176,020 142,418 Depreciation 32,785 32,785 Operating Income (Loss) (66,387) 176,020 109,633 Nonoperating Revenues Interest Income, Net of Related Expenses {1,4861 {1,486 1 Income (Loss) before Transfers (67,873) 176,020 108,147 Transfers Transfers In 52,500 52,500 Change in Net Position (15,373) 176,020 160,647 Net Position Beginning 1,238,813 279,565 1,518,378 Ending $ 1,223,440 455,585 1,679,025 88 VILLAGE OF BUFFALO GROVE, ILLINOIS N onmaj or Enterprise Funds Combining Statement of Cash Flows Year Ended December 31, 2012 Buffalo Grove Refuse Golf Course Service Total Cash Flows from Operating Activities Cash Received for Golf Activities $ 1,123,596 1,123,596 Cash Received for Refuse Services 1,050,137 1,050,137 Payments to Employees (694,314) (694,314) Payments to Suppliers {483,9091 {874,3661 {l,358,2751 {54,6271 175,771 121,144 Cash Flows from Noncapital Financing Activities Transfers In 52,500 52,500 Change in Due to/from Other Funds, Net 1,547 1,547 54,047 54,047 Cash Flows from Investing Activities Interest Received {1,4861 {l,4861 Net Increase (Decrease) in Cash and Cash Equivalents (2,066) 175,771 173,705 Cash and Cash Equivalents Beginning of Year 2,066 193,215 195,281 End of Year $ 368,986 368,986 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) $ {66,3871 176,020 109,633 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation 32,785 32,785 Change in Assets and Liabilities Inventory (165) (165) Receivables (249) (249) Accounts Payable and Accrued Liabilities {20,8601 {20,8601 Total Adjustments 11,760 {2491 11,511 Net Cash Provided (Used) by Operating Activities $ {54,6271 175,771 121,144 89 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, 2012 Operating Revenues Daily Greens Fees and Memberships Merchandise Sales Cart, Club and Other Rentals Driving Range Fees Miscellaneous Total Operating Revenues Operating Expenses Excluding Depreciation Golf Operations Cost of Sales -Pro Shop Operating Income (Loss) (Budgetary Basis) Nonoperating Revenues Interest Income, Net of Related Expenses Transfers Transfers In Transfers Out Net Income (Budgetary Basis) 90 OriginallFinal Appropriations $ 1,364,980 52,000 1,416,980 (1,416,980) (85,000) $ (1,501,980) Final Budget 855,000 77,000 241,400 70,000 16,300 1,259,700 1,141,138 45,000 1,186,138 73,562 (70,106) 3,456 Actual 758,884 77,185 209,328 51,409 26,790 1,123,596 1,108,473 48,725 1,157,198 (33,602) (1,486) 52,500 17,412 VILLAGE OF BUFFALO GROVE, ILLINOIS Refuse Service Fund (Nonmajor Fund) Schedule of Operating and Nonoperating Revenues, Operating and Nonoperating Expenses and Transfers -Budget and Actual (Budgetary Basis) Year Ended December 31,2012 Original/Final AEEroEriations Operating Revenues SW ANCC User Fees $ Operating Expenses Refuse Operations 1,250,000 Other Total Operating Expenses 1,250,000 Net Income (Loss) (Budgetary Basis) $ {1,250,0002 91 Final Budget Actual 1,039,387 1,050,386 969,321 855,091 19,275 969,321 874,366 70,066 176,020 TRUST AND AGENCY FUNDS Pension Trust Police Pension Fund -to account for the accumulation of resources to be used for disability and retirement annuity payments to uniformed police department personnel at appropriate amounts and times in the future. Resources are contributed by employees along with interest income and by property tax levies. Firefighters' Pension Fund -to account for the accumulation of resources to be used for disability and retirement annuity payments to uniformed fire department personnel at appropriate amounts and times in the future. Resources are contributed by employees along with interest income and by property tax levies. Agency School and Park District Donations Fund -to account for monies deposited by developers for local schools and park districts. These funds are deposited with the Village and later remitted to the applicable school or park district. VILLAGE OF BUFFALO GROVE, ILLINOIS Fiduciary Funds Combining Statement of Plan Net Position -Pension Trust Funds December 31, 2012 Police Firefighters' Pension Pension Total Assets Cash and Equivalents $ 4,983,960 205,535 5,189,495 Investments U.S. Government and Agency Obligations 20,993,534 17,044,307 38,037,841 Open-end Mutual Funds 20,770,894 21,265,118 42,036,012 Receivables Pension Contributions 1,769,840 1,519,078 3,288,918 Interest 17,839 92,196 nO,035 Due from Other Fund 3,762 3,762 Total Assets 48,536,067 40,129,996 88,666,063 Liabilities Accounts Payable 26,452 16,100 42,552 Due to Other Fund 5,539 5,539 Total Liabilities 31,991 16,100 48,091 Net Position Held in Trust for Pension Benefits $ 48,504,076 40,113,896 88,617,972 92 VILLAGE OF BUFFALO GROVE, ILLINOIS Fiduciary Funds Combining Statement of Changes in Plan Net Position -Pension Trust Funds Year Ended December 31, 2012 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 Position Net Position Held in Trust for Pension Benefits Beginning Ending 93 $ Police Pension 2,187,321 672,100 2,859,421 3,080,789 360,711 (125,158) 3,316,342 6,175,763 41,891 2,114,471 2,156,362 4,019,401 44,484,675 $ 48,504,076 Firefighters Pension 2,026,299 505,408 2,531,707 2,954,370 469,713 (188,250) 3,235,833 5,767,540 1,226,433 1,226,433 4,541,107 35,572,789 40,113,896 Total 4,213,620 1,177,508 5,391,128 6,035,159 830,424 (313,408) 6,552,175 11,943,303 41,891 3,340,904 3,382,795 8,560,508 80,057,464 88,617,972 VILLAGE OF BUFFALO GROVE, ILLINOIS Police Pension Fund Schedule of Changes in Plan Net Positions -Budget and Actual Year Ended December 31, 2012 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 Position Net Position Held in Trust for Pension Benefits Beginning Ending 94 Original/Final Appropriations $ 150,000 2,200,000 2,350,000 $ (2,350!0002 Final Budget Actual 2,159,838 2,187,321 569,300 672,100 2,729,138 2,859,421 1,548,816 3,080,789 36,360 360,711 {105,0002 {125,158 2 1,480,176 3,316,342 4,209,314 6,175,763 32,000 41,891 2,003,663 2,114,471 2,035!663 2,156,362 2,173,651 4,019,401 44,484,675 48,504,076 VILLAGE OF BUFFALO GROVE, ILLINOIS Firefighters' Pension Fund Schedule of Changes in Plan Net Position -Budget and Actual Year Ended December 31, 2012 Additions Contributions Employer Participants Investment Income Net Appreciation (Depreciation) in Fair Value of Investments Interest Income Less: Investment Expense Total Additions Deductions Administration Pension Benefits and Refunds Total Deductions Change in Net Position Net Position Held in Trust for Pension Benefits Beginning Ending Original/Final Appropriations $ 125,000 1,350,000 1,475,000 $ 0,475,000) 95 Final Budget Actual 2,003,757 2,026,299 496,574 505,408 2,500,331 2,531,707 (790,757) 2,954,370 360,270 469,713 P03,738 2 {188,2502 {534,225 2 3,235,833 1,966,106 5,767,540 1,215,766 1,226,433 1,215,766 1,226,433 750,340 4,541,107 35,572,789 40,113,896 VILLAGE OF BUFFALO GROVE, ILLINOIS Agency Fund School and Park Donations Schedule of Changes in Fiduciary Net Position Year Ended December 31, 2012 Assets Cash and Cash Equivalents Liabilities Due to Other Governments Balances Janua!1:: 1 $ 585,387 $ 585,387 96 Balances Additions Deductions December 31 71,047 55,839 600,595 71,047 55,839 600,595 CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS VILLAGE OF BUFFALO GROVE, ILLINOIS Capital Assets Used in the Operation of Government Funds Schedule of Capital Assets by Source December 31,2012 Assets Governmental Funds Capital Assets Land Construction in Progress Buildings Land Improvements Equipment and Vehicles Streets Storm Sewers Total Governmental Funds Capital Assets Investment in Governmental Funds Capital Assets by Source Capital Projects Current Revenues Debt Issuance Contributions Total Governmental Funds Capital Assets $ 35,963,844 102,205 22,595,602 3,179,974 12,880,468 19,040,719 37,665,289 $ 131,428,101 $ 7,651,823 6,727,456 23,400,489 93,648,333 $ 131,428,101 97 VILLAGE OF BUFFALO GROVE, ILLINOIS Capital Assets Used in the Operation of Government Funds Schedule by Function and Activity December 31,2012 General Government Public Safety Public Works Land $ 6,254,297 29,709,547 $ 35,963,844 98 Construction in Progress 102,205 102,205 Buildings 7,946,966 9,845,494 4,803,142 22,595,602 Equipment and Vehicles 1,535,424 6,771,367 4,573,677 12,880,468 Land Storm Streets Improvements Sewers Total 15,736,687 16,616,861 19,040,719 3,179,974 37,665,289 99,074,553 19,040,719 3,179,974 37,665,289 131,428,101 99 VILLAGE OF BUFFALO GROVE, ILLINOIS Capital Assets Used in the Operation of Government Funds Schedule of Changes by Function and Activity Year Ended December 31, 2012 General Government Public Safety Public Works Balances January 1, 2012 $ 15,349,224 16,584,318 99,017,222 $ 130,950,764 100 Balances December 31, Additions Deductions 2012 689,412 301,949 15,736,687 83,901 51,358 16,616,861 132,144 74,813 99,074,553 905,457 428,120 131,428,101 STATISTICAL SECTION (UNAUDITED) The infonnation 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 OF BUFFALO GROVE, ILLINOIS Statistical Section This portion of the Village of Buffalo Grove's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the fmancial statements, note disclosures, and required supplementary information says about the Village's overall economic condition. Contents Financial Trends These schedules contain trend information to help the reader understand how the Village's fmancial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the factors affecting the Village's ability to generate its property and sales taxes. Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's fmancial activities take place and to help make comparisons over time and other governments. Operating Information These schedules contain information about the Village's operations and resources to help the reader understand how the Village's fmancial information relates to the services the Village provides and the activities it performs. Sources: 101-110 111-120 121-124 125-126 127-l32 Unless otherwise noted, the information in these schedules is derived from the Village's Comprehensive Annual Financial Reports for the relevant year. The Village implemented GASB Statement 34 in 2004; schedules presenting government-wide information include information beginning in that year. FINANCIAL TRENDS VILLAGE OF BUFFALO GROVE, ILLINOIS Net Position by Component Last Ten Fiscal Years Fiscal Year 2012 2011 2010 Governmental Activities Net Investment in Capital Assets $ 52,096,183 53,362,147 53,742,519 Restricted 6,268,039 1,918,263 956,803 Unrestricted 9,368,075 13,429,876 15,738,272 Total Governmental Activities Net Assets $ 67,732,297 68,710,286 70,437,594 Business-type Activities Net Investment in Capital Assets $ 36,706,161 37,807,146 38,410,966 Restricted Unrestricted 11,651,709 12,989,124 14,644,341 Total Business-type Activities Net Assets $ 48,357,870 50,796,270 53,055,307 Primary Government Net Investment in Capital Assets $ 88,802,344 91,169,293 92,153,485 Restricted 6,268,039 1,918,263 956,803 Unrestricted 21,019,784 26,419,000 30,382,613 Total Primary Government Net Assets $ 116,090,167 119,506,556 123,492,901 *Transitional fiscal year May 1, 2007 through December 31, 2007. Data Source Audited Financial Statements 101 2009 2008 2007* 2007 2006 2005 2004 54,563,385 53,551,265 53,702,484 53,726,929 53,188,591 49,264,115 48,009,890 140,712 80,438 33,167 1,294,897 1,425,988 4,955,378 4,368,460 16,590,052 23,259,339 27,184,985 35,512,486 37,786,827 34,551,091 34,708,597 71,294,149 76,891,042 80,920,636 90,534,312 92,401,406 88,770,584 87,086,947 39,808,889 41,374,269 42,667,740 42,667,526 43,646,133 44,123,414 45,491,776 15,011,209 17,003,316 17,509,194 18,553,703 18,300,838 18,375,098 17,690,967 54,820,098 58,377,585 60,176,934 61,221,229 61,946,971 62,498,512 63,182,743 94,372,274 94,925,534 96,370,224 96,394,455 96,834,724 93,387,529 93,501,666 140,712 80,438 33,167 1,294,897 1,425,988 4,955,378 4,368,460 31,601,261 40,262,655 44,694,179 54,066,189 56,087,665 52,926,189 52,399,564 126,114,247 135,268,627 141,097,570 151,755,541 154,348,377 151,269,096 150,269,690 102 VILLAGE OF BUFFALO GROVE, ILLINOIS Changes in Net Position Last Ten Fiscal Years Fiscal Year 2012 2011 2010 2009 Expenses Governmental Activities General Government $ 5,642,049 5,010,274 4,769,874 6,182,475 Public Safety 22,344,117 22,657,643 22,312,910 22,753,590 Public Works 12,026,911 11,106,433 11,081,374 10,421,659 Interest 384,180 248,539 194,655 334,142 Total Governmental Activities Expenses 40,397,257 39,022,889 38,358,813 39,691,866 Business-type Activities Water and Sewer 8,702,680 8,753,149 9,865,981 9,519,169 Refuse Service 874,366 935,365 942,757 944,392 Golf Courses 2,991,170 3,057,912 3,043,367 3,118,647 Total Business-type Activities Expenses 12,568,216 12,746,426 13,852,105 13,582,208 Total Primary Government Expenses $ 52,965,473 51,769,315 52,210,918 53,274,074 Program Revenues Governmental Activities Charges for Services General Government $ 1,226,552 1,240,547 1,195,928 977,464 Public Safety 1,283,956 1,404,308 1,419,761 1,563,236 Public Works 118,547 86,421 71,606 50,709 Operating Grants and Contributions 1,178,442 1,230,387 1,253,103 1,349,044 Capital Grants and Contributions Total Governmental Activities Program Revenues 3,807,497 3,961,663 3,940,398 3,940,453 Business-type Activities Charges for Services Water and Sewer 7,464,870 7,782,000 9,091,520 8,008,360 Refuse Service 1,050,386 1,036,872 1,041,661 1,004,431 Golf Courses 2,221,714 2,175,418 2,088,106 2,320,247 Operating Grants and Contributions Capital Grants and Contributions Total Business-type Activities Program Revenues 10,736,970 10,994,290 12,221,287 11,333,038 Total Primary Government Program Revenues $ 14,544,467 14,955,953 16,161,685 15,273,491 Net (Expense) Revenue Governmental Activities $(36,589,760) (35,061,226) (34,418,415) (35,751,413) Business-type Activities {I,831,2461 {1,752,1361 {I,630,8181 {2,249,1701 Total Primary Government Net Expense ${38,421,006) {36,813,3621 {36,049,233 1 {38,000,583) *Transitional fiscal year May 1,2007 through December 31, 2007. 103 2008 2007* 2007 2006 2005 2004 5,705,497 4,019,032 4,686,330 4,582,741 4,701,408 4,749,920 21,115,737 15,324,061 18,951,546 18,137,721 16,822,265 16,396,186 13,222,026 8,232,685 12,479,424 11,441,440 9,523,240 9,550,018 379,501 216,379 529,858 1,217,883 994,708 877,924 40,422,761 27,792,157 36,647,158 35,379,785 32,041,621 31,574,048 8,684,651 5,165,701 7,256,639 7,168,405 6,780,153 6,843,943 1,017,164 777,716 1,024,248 956,915 971,980 936,573 3,423,903 2,637,072 3,102,770 3,333,644 3,101,134 3,236,932 13,125,718 8,580,489 11,383,657 11,458,964 10,853,267 11,017,448 53,548,479 36,372,646 48,030,815 46,838,749 42,894,888 42,591,496 1,211,188 1,139,242 1,880,714 2,048,850 1,683,585 1,802,120 1,514,666 1,050,920 1,525,943 1,553,949 1,476,845 1,358,439 94,670 94,670 192,193 1,307,895 950,383 1,532,557 1,218,020 4,128,419 3,235,215 4,939,214 3,602,799 3,160,430 4,570,772 7,538,534 4,799,193 6,694,051 7,688,143 6,279,172 6,322,045 923,207 704,841 991,140 990,113 975,290 957,435 2,356,962 2,141,860 2,323,919 2,567,759 2,637,717 2,592,370 1,444,395 1,915,746 1,106,103 133,599 497,875 450,000 1,867,859 760,726 2,361,256 10,952,302 8,143,769 10,459,110 14,558,269 12,568,651 13,339,209 15,080,721 11,378,984 15,398,324 18,161,068 15,729,081 17,909,981 (36,294,342) (24,556,942) (31,707,944) (31,776,986) (28,881,191) (27,003,276) {2,173,4162 {436,7202 {924,5472 3,099,305 1,715,384 2,321,761 {38,467,758 2 {24 z993,6622 {32,632,491 2 {28,677,681 2 {27, 165 ,8072 {24,681,515 2 (Cont.) 104 VILLAGE OF BUFFALO GROVE, ILLINOIS Changes in Net Position (Cont.) Last Ten Fiscal Years Fiscal Year 2012 2011 2010 2009 General Revenues and Other Changes in Net Assets Governmental Activities Taxes Property 14,330,407 14,458,248 13,657,589 12,504,508 Sales and Home Rule 7,570,915 6,9'84,134 7,309,800 7,196,969 Income and Use 5,462,111 3,714,864 4,165,248 3,601,619 Telecommunications 2,200,809 2,134,462 2,183,190 2,345,249 Utility 2,510,242 2,567,091 2,393,340 Property Transfer 459,036 629,376 545,515 670,762 Other 1,070,409 1,044,164 1,017,612 1,006,249 Investment Earnings 132,436 133,059 250,290 490,881 Miscellaneous 1,239,906 1,495,155 1,822,276 1,403,283 Transfers 635,500 553,000 217,000 935,000 Proceeds from Insurance Pool Total Governmental Activities 35,611,771 33,713,553 33,561,860 30,154,520 Business-type Activities Property Investment Earnings 27,087 41,100 (46,666) (374,632) Miscellaneous 1,259 4,999 2,133 1,315 Transfers ~635,5002 ~553,0002 ~217,0002 ~935,0002 Total Business-type Activities ~607,1542 ~506z9012 ~261,5332 ~1,308,3172 Total Primary Government $ 35,004,617 33,206,652 33,300,327 28,846,203 Change in Net Position Governmental Activities $ (977,989) (1,347,673) (856,555) (5,596,893) Business-type Activities ~2,438,4002 ~2,259,0372 ~1,892,3512 p,557,487 2 Total Primary Government Change in Net Assets $ p,416,3892 p,606,7102 ~2,748z9062 ~9,154,3802 Data Source Audited Financial Statements 105 2008 2007* 2007 2006 2005 2004 12,058,815 706,749 10,214,926 11,622,088 10,868,824 11,788,975 8,436,647 5,741,981 8,619,267 8,800,041 7,960,163 6,349,520 4,646,776 2,725,204 4,280,237 3,855,616 3,433,471 3,001,889 2,417,496 1,967,348 2,436,233 2,230,092 2,442,641 2,624,965 590,596 600,379 980,213 1,346,946 1,212,292 1,253,906 1,076,929 247,827 273,335 293,990 291,839 253,516 810,982 958,715 1,636,589 1,109,664 599,072 430,943 2,081,112 1,254,948 855,100 1,126,625 1,058,732 751,134 80,230 899,950 544,950 784,625 414,760 (203,740) 925,867 32,199,583 15,103,101 29,840,850 32,095,554 28,281,794 26,251,108 166,007 82,989 122,832 114,998 267,263 292,375 445,766 363,044 175,347 122,106 187,034 131,982 (80,230) (899,950) (544,950) (784,625) (414,760) 203,740 374,067 (607,575) 198,805 (338,592) (116,581) 440,844 32,573,650 14,495,526 30,039,655 31,756,962 28,165,213 26,691,952 (4,094,759) (9,453,841) (1,867,094) 318,568 (599,397) (752,168) (1,799,349) ( 1 ,044,295) (725,742) 2,760,713 1,598,803 2,762,605 (5,894,108) (10,498,136) (2,592,836) 3,079,281 999,406 2,010,437 106 VILLAGE OF BUFFALO GROVE, ILLINOIS Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2012 2011 2010 2009 2008 General Fund Non Spendable $ 1,625,419 1,031,936 Restricted Committed 7,335,685 7,948,344 Assigned Unassigned 10,759,935 9,871,895 Reserved 1,138,273 1,248,428 1,536,571 Unreserved 17,763,849 18,307,270 22,444,819 Total General Fund 19,721,039 18,852,175 18,902,122 19,555,698 23,981,390 All Other Governmental Funds Non Spendable Restricted 6,112,703 1,918,263 Committed Assigned 144,075 146,116 Unassigned (253,826) (234,206) Reserved Unreserved Reserved 20,271 (12,970) 33,167 Unreserved, Reported In Special Revenue Funds 2,124,937 1,252,015 1,239,501 Capital Projects Funds 927,626 903,315 1,911,178 Total All Other Governmental Funds 6,002,952 1,830,173 3,072,834 2,142,360 3,183,846 Total Governmental Funds $ 25,723,991 20,682,348 21,974,956 21,698,058 27,165,236 *Transitional fiscal year May 1, 2007 through December 31, 2007. Data Source Audited Financial Statements 107 2007* 2007 2006 2005 2004 2003 1,846,137 1,846,137 1,787,884 1,524,130 1,339,393 1,155,677 27,556,199 27,556,199 27,252,660 23,935,055 23,556,556 22,975,100 29,402,336 29,402,336 29,040,544 25,459,185 24,895,949 24,130,777 486,946 486,946 499,743 4,543,605 4,311,770 4,238,926 1,942,258 1,942,258 1,813,406 1,496,628 953,672 988,142 2,436,815 2,436,815 3,888,047 3,928,552 3,618,540 3,732,973 4,866,019 4,866,019 6,201,196 9,968,785 8,883,982 8,960,041 34,268,355 34,268,355 35,241,740 35,427,970 33,779,931 33,090,818 108 VILLAGE OF BUFFALO GROVE, ILLINOIS Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2012 2,011 2010 2009 2008 Revenues Property Taxes $ 14,330,407 14,458,248 13,657,589 12,504,508 12,058,815 Other Taxes 18,325,614 17,074,091 17,614,705 14,806,744 17,168,444 Licenses and Permits 275,434 280,139 278,164 276,857 278,965 Intergovernmental 1,011,949 1,060,719 1,096,794 1,106,234 1,134,407 Fines and Forfeitures 1,283,956 1,404,308 1,419,761 1,559,190 1,514,666 Charges for Services 1,236,158 1,216,497 1,145,679 970,537 1,200,381 Investment Income 132,457 133,196 249,396 490,881 790,244 Miscellaneous 1,239,861 1,442,617 1,720,640 1,444,610 2,081,112 Total Revenues 37,835,836 37,069,815 37,182,728 33,159,561 36,227,034 Expenditures Current General Government 5,097,142 5,509,433 4,979,904 5,596,822 5,458,962 Public Safety 21,791,218 22,008,351 21,802,732 20,882,745 20,499,004 Public Works 9,865,723 8,256,079 8,704,005 10,337,090 10,792,931 Capital Outlays 1,561,904 1,510,924 3,157,156 1,245,940 1,286,175 Debt Service Principal 920,000 1,055,000 980,000 1,165,000 1,150,000 Interest 285,420 248,539 194,655 334,142 379,501 Other charges 127,930 Total Expenditures 39,521,407 38,588,326 39,946,382 39,561,739 39,566,573 Excess (Deficiency) of Revenues over Expenditures {l,685,571 2 {1,518,511 2 {2,763,6542 {6,402,1782 p,339,5391 Other Financing Sources (Uses) Transfers In 2,621,132 1,891,354 2,153,190 2,909,382 4,121,451 Transfers Out (1,985,632) (1,338,354) (1,936,190) (1,974,382) (4,041,221) Auction Proceeds 45 52,538 103,565 Bonds Issued 6,000,000 7,760,000 Premium on Issuance of Debt 91,669 178,229 Transfer to Escrow Agent {5,218,2422 Total Other Financing Sources (Uses) 6,727,214 605,538 3,040,552 935,000 80,230 Net Change in Fund Balance $ 5,041,643 1912,9732 276,898 !5,467,1782 {3,259,3092 Debt Service as a Percentage of N oncapital Expenditures 3.10% 3.65% 3.13% 3.93% 4.00% *Transitional fiscal year May 1,2007 through December 31,2007. Data Source Audited Financial Statements 109 2007* 2007 2006 2005 2004 2003 5,797,846 10,402,764 11,245,966 11,715,601 12,463,170 9,874,681 11,282,739 16,589,285 16,526,685 15,340,405 13,483,796 13,207,726 245,148 825,691 836,279 860,838 764,834 1,724,062 815,669 1,253,319 3,110,490 2,283,034 1,218,020 1,222,699 1,050,918 1,525,943 1,553,949 1,476,845 1,200,967 914,637 1,028,810 1,334,260 1,414,337 822,748 1,386,951 693,936 911,444 1,562,291 1,094,843 599,072 430,943 622,866 1,254,948 855,101 1,126,625 1,058,732 902,824 208,422 22,387,522 34,348,654 36,909,174 34,157,275 31,851,505 28,469,029 3,455,213 4,955,659 4,276,374 4,326,708 4,044,058 6,431,336 14,211,380 18,185,545 17,521,978 16,390,156 16,411,219 15,931,648 7,225,387 9,319,231 8,011,071 7,189,290 6,783,338 3,047,952 502,701 1,945,053 2,285,510 750,020 1,498,844 6,065,692 1,312,381 1,234,765 6,020,700 3,362,814 3,521,160 3,167,250 424,220 476,736 1,440,436 905,008 998,046 1,220,546 27,131,282 36,116,989 39,556,069 32,923,996 33,256,665 35,864,424 (4,743,760) (1,768,335) (2,646,895) 1,233,279 (1,405,160) (7,395,395) 3,064,166 3,453,845 3,586,075 2,770,109 9,503,218 2,978,357 (2,164,216) (2,658,895) (2,895,578) (2,355,349) (2,879,098) (2,468,213) 2,600,000 899,950 794,950 690,497 414,760 6,624,120 3,110,144 (3,843,810) (973,385) (1,956,398) 1,648,039 5,218,960 ( 4,285,251) 6.52% 5.01% 20.02% 13.26% 14.23% 14.72% 110 REVENUE CAPACITY 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 ProEerty ProEerty ProEerty ProEerty Value 2012 $1,248,844,566 312,328,617 4,385,758 783,171 1,566,342,112 * 2011 1,338,206,375 315,118,343 10,706,904 832,216 1,664,431,364 2010 1,435,137,071 325,603,742 12,723,472 636,502 1,774,100,787 2009 1,535,445,605 346,125,532 14,583,031 628,346 1,896,782,514 2008 1,510,235,133 353,063,176 17,166,096 630,017 1,881,094,422 2007 1,454,038,913 339,683,354 16,474,758 624,450 1,810,821,475 2006 1,338,444,546 322,892,024 15,268,492 617,345 1,677,222,407 2005 1,276,516,807 318,031,796 13,102,464 613,726 1,608,264,793 2004 1,155,398,804 325,308,649 11,332,296 738,791 1,492,778,540 2003 1,078,494,828 303,655,927 10,578,013 689,616 1,393,418,384 *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 111 Estimated Estimated Total Actual Actual Direct Taxable Taxable Tax Rate Value Value 0.9187 4,699,026,336 33.333% 0.8594 4,993,294,092 33.333% 0.7999 5,322,302,361 33.333% 0.7359 5,690,347,542 33.333% 0.6661 5,643,283,266 33.333% 0.6668 5,432,464,425 33.333% 0.6536 5,031,667,221 33.333% 0.6330 4,824,794,379 33.333% 0.6421 4,478,335,620 33.333% 0.6539 4,180,255,152 33.333% 112 VILLAGE OF BUFFALO GROVE, ILLINOIS Property Tax Rates -Direct and Overlapping Governments Last Ten Levy Years Comparative Tax Rates (Per $100 Assessed and Equalized Valuation) Tax Levy Year Lake County (2) Village 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 -Y ear-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 #214 and District #512) Buffalo Grove Park District Indian Trails Public Library District All Other Percentage Change -Y ear-to-Year Notes: 2012 2011 0.929 0.852 0.82 0.755 6.779 6.158 0.511 0.452 0.441 0.385 0.106 0.092 9.586 8.694 10.26% 9.33% N/A 0.886 N/A 0.520 N/A 0.320 N/A 6.565 N/A 0.479 N/A 0.393 N/A 0.107 N/A 9.270 N/A 12.95% (1) Taxes levied on a calendar year basis for collection in the subsequent fiscal year. 2010 2009 0.797 0.750 0.703 0.664 5.610 5.301 0.425 0.351 0.315 0.301 0.102 0.094 7.952 7.461 6.58% 5.04% 0.810 0.691 0.474 0.464 0.274 0.261 5.792 5.103 0.439 0.371 0.347 0.307 0.071 0.068 8.207 7.265 12.97% 1.71% (2) Overlapping tax rates for Lake County represented only District #102 and Indian Trail Library District as the majority of Buffalo Grove is within those districts. Overlapping rates for District #96 available upon request. NI A -not yet available. Data Source Cook County Tax Extension Office and Lake County Tax Extension Office 113 2008 0.665 0.652 5.102 0.370 0.222 0.092 7.103 0.74% 0.670 0.466 0.252 5.004 0.376 0.308 0.067 7.143 -2.39% 2007 2006 2005 2004 2003 0.649 0.633 0.608 0.603 0.615 0.645 0.654 0.664 0.684 0.715 5.066 5.318 5.234 5.300 5.144 0.380 0.403 0.375 0.349 0.387 0.219 0.317 0.223 0.325 0.265 0.092 0.094 0.093 0.120 0.101 7.051 7.419 7.197 7.381 7.227 -4.96% 3.08% -2.49% 2.13% 0.74% 0.729 0.731 0.726 0.785 0.807 0.499 0.557 0.607 0.662 0.728 0.263 0.284 0.315 0.347 0.361 5.035 5.613 5.434 5.359 5.867 0.416 0.455 0.435 0.457 0.498 0.297 0.320 0.312 0.323 0.335 0.079 0.080 0.076 0.064 0.074 7.318 8.040 7.905 7.997 8.670 -8.98% 1.71% -1.15% -7.76% 7.42% 114 VILLAGE OF BUFFALO GROVE, ILLINOIS Principal Property Taxpayers Current Fiscal Year and Nine Years Ago 2012 2003 Percentage Percentage of Total of Total Village Village Equalized Taxable Equalized Equalized Assessed Assessed Assessed Assessed TaxEayer Valuation Rank Valuation Valuation Rank Valuation Chevy Chase Business Park $ 26,804,771 1 1.71 % 18,153,246 2 1.30 % Hamilton Partners (1) 10,702,140 2 0.68 12,794,836 4 0.92 Millbrook 9,545,944 3 0.61 Penobscot Management (3) 8,771,928 4 0.56 8,878,064 6 0.64 Rogers Center for Commerce (4) 8,313,454 5 0.53 20,442,855 1 1.47 Riverwalk South LLC (2) 7,749,476 6 0.49 12,106,414 5 0.87 Remax Consumer Plastics, Inc. 7,739,513 7 0.49 Aptakisic Creek Corporate Park LLC 7,379,117 8 0.47 Amil at Windbrooke LP 6,125,414 9 0.39 6,190,285 9 0.44 Manufacturer's Life Insurance 5,821,022 10 0.37 6,432,844 8 0.46 Amli at Chevy Chase, LP 14,836,110 3 1.07 Inland Real Estate Group 7,213,448 7 0.52 First Chicago Property 5,884,659 10 0.42 American National Bank Courtesy Corporation $ 98 z952:779 6.32 % 112,932,761 8.11 % Note: Every effort was made to seek out and report the largest taxpayers. However, many of the taxpayers contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked. (1) Previously HP Riverwalk II, LLC (2) Previously Marack and Associates (3) Previously The Wheatlands LLC (4) Previously American National Bank and Trust of Chicago Data Source Offices of the County Clerk of Cook and Lake Counties 115 VILLAGE OF BUFFALO GROVE, ILLINOIS Property Tax Levies and Collections Last Ten Fiscal Years Lake Coun!i: Collected Within the Fiscal Year After the Le~ Levy Tax Percentage Year Levied Amount ofLe~ 2011 $ 11,026,478 11,019,638 99.94% 2010 10,911,629 10,902,757 99.92% 2009 10,826,999 10,818,398 99.92% 2008 9,648,296 9,639,444 99.91% 2007 9,l37,324 9,l33,824 99.96% 2006 8,389,127 8,383,359 99.93% 2005 7,690,488 7,692,967 100.00% 2004 7,068,040 7,063,323 99.93% 2003 6,833,964 6,833,112 99.99% 2002 6,496,642 6,493,l38 99.95% Notes: Property is assessed at 33 113% of actual value. Cook Coun!i: Collected Within the Fiscal Year After the Le~ Tax Percentage Levied Amount of Levy 3,279,285 3,225,824 98.37% 3,280,083 3,203,676 97.67% 3,l31,059 2,992,768 95.58% 2,882,493 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% 2,010,410 1,991,316 99.05% Property is assessed on the following basis: Cook County -Triennial; Lake County -Quadrennial (minimum). Collections for prior tax years are immaterial. Data Source Office of the County Clerk 116 Vi1la~e Total Percentage Collected of Levy 14,245,462 99.58% 14,106,433 99.40% 13,811,167 98.95% 12,541,667 100.00% 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% 117 VILLAGE OF BUFFALO GROVE, ILLINOIS Sales Tax Revenue and Number of Principal Payers Revenue by Category Last Ten Calendar Years General Merchandise Food Drinking and Eating Places Apparel Furniture, Households and Radio Lumber, Building and Hardware Automotive Filling Stations Drugs and Miscellaneous Retail Agriculture and All Other Manufacturers Total Number of Payers Village Direct Sales Tax Rate Village Home Rule tax Rate Note: 2012 2011 $ 17,526 18,514 1,193,312 1,244,667 997,738 921,617 130,163 129,402 437,774 378,836 812,434 534,413 954,996 853,864 1,847,550 1,982,824 1,347,303 1,193,620 334,442 378,326 $ 8,073,237 7,636,083 966 1,286 1.00% 1.00% 1.00% 1.00% Calendar Year 2010 2009 2008 3,901 4,637 5,819 1,362,170 1,357,378 1,415,835 933,212 941,804 906,628 128,663 112,951 104,376 415,396 223,008 521,316 402,483 716,935 1,379,764 959,870 1,222,500 1,177,121 1,431,121 1,432,484 1,285,513 1,062,978 1,257,806 2,082,955 379,893 399,141 390,034 7,079,687 7,668,644 9,269,361 997 975 1,002 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Blank categories have less than four taxpayers; therefore, no data is shown to protect the confidentiality of individual taxpayers. Data Source Illinois Department of Revenue Offices of the Cook and Lake County Clerks 118 2007 2006 2005 2004 2003 3,793 1,346 1,662 4,614 1,371,195 1,340,177 1,360,403 1,256,331 1,206,548 874,307 924,738 932,646 833,941 630,398 110,386 67,072 100,045 81,888 47,529 422,342 530,825 534,243 456,248 455,215 2,181,496 3,326,323 3,666,077 3,279,174 2,388,782 1,715,400 1,581,217 1,459,577 1,266,367 1,151,643 1,237,894 1,206,917 1,088,992 929,343 829,971 1,777,144 1,755,277 1,744,041 1,258,957 1,127,987 338,494 438,024 502,410 498,294 182,256 10,032,451 11,171,916 11,390,096 9,865,157 8,020,329 1,196 1,311 1,271 1,189 1,213 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 0.50% 0.50% 119 VILLAGE OF BUFFALO GROVE, ILLINOIS Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years State of Village Illinois Fiscal Direct Sales Tax Year Rate Rate 2012 1.00% 6.50% 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 1, 2007 through December 31, 2007. Data Source Illinois Department of Revenue 120 DEBT CAPACITY VILLAGE OF BUFFALO GROVE, ILLINOIS Ratio of Outstanding Debt by Type Last Ten Years Governmental Activities Tax General Increment Special Year Obligation Financing Service Area Ended Bonds Bonds Bonds 12/3112012 $ 12,280,000 12/3112011 7,200,000 12/3112010 8,255,000 12/3112009 6,575,000 12/3112008 7,740,000 12/3112007* 8,890,000 4/30/2007 10,202,381 4/30/2006 11,437,146 4/30/2005 12,597,846 3,400,000 1,460,000 4/30/2004 13,530,660 4,150,000 3,140,000 4/3012003 14,201,820 5,505,000 4,635,000 Business-Type Activities General Obligation Revenue Bonds Bonds 174,768 345,003 689,303 1,034,647 1,367,443 *Transitional fiscal year May 1, 2007 through December 31, 2007. December 31, 2007 represents an eight-month period. Notes: Total Primary Government 12,280,000 7,200,000 8,255,000 6,575,000 7,740,000 8,890,000 10,377,149 11,782,149 18,147,149 21,855,307 25,709,263 Details of the Village's outstanding debt can be found in the Notes to the Financial Statements. Ratio of Total Outstanding Debt Debt to Total Outstanding Equalized Outstanding as a Percentage Assessed Debt of Personal Valuation Eer CaEita{ 12 Income 0.78% 290.10 0.65% 0.43% 171.79 0.39% 0.47% 198.93 0.45% 0.35% 156.62 0.36% 0.41% 183.54 0.44% 0.49% 209.47 0.51% 0.62% 243.80 0.60% 0.73% 274.96 0.69% 1.22% 420.12 1.08% 1.57% 508.70 1.28% 1.95% 596.50 1.53% (I) See the Schedule of Demographic and Economic Statistics for equalized assessed valuation of property, personal income, and population data. 121 VILLAGE OF BUFFALO GROVE, ILLINOIS Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Percentage Amounts of Estimated Available Actual General in Debt Taxable Fiscal Obligation Service Value of Year Bonds Fund Total ProEe~ {12 Per CaEita 2012 $ 12,280,000 19,527 12,260,473 0.78% 289.64 2011 7,200,000 12,543 7,187,457 0.43% 171.49 2010 8,255,000 20,271 8,234,729 0.46% 198.45 2009 6,575,000 (12,970) 6,587,970 0.35% 156.93 2008 7,740,000 33,167 7,706,833 0.41% 182.76 2007 * 8,890,000 98,332 8,791,668 0.49% 207.16 2007 10,202,381 486,946 9,715,435 0.58% 228.25 2006 11,780,000 499,743 11,280,257 0.70% 263.24 2005 12,597,846 12,597,846 0.84% 291.65 2004 14,565,307 14,565,307 1.05% 339.02 2003 15,565,000 15,565,000 1.18% 361.14 *Transitional fiscal year May 1, 2007 through December 31, 2007. Notes: Details of the Village's outstanding debt can be found in the Notes to the Financial Statements. (1) See the Schedule of Assessed Value and estimated Actual Value of Taxable Property for property value data. 122 VILLAGE OF BUFFALO GROVE, ILLINOIS Direct and Overlapping Governmental Activities Debt As of December 31, 2012 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 $ 47,585,000 18.09% 8,608,127 Kildeer Countryside Community Consolidated #96 1,285,000 39.57% 508,475 Aptakisic-Tripp Community Consolidated #102 4,525,000 76.48% 3,460,720 Lincolnshire -Half Day District #103 2,840,000 11.84% 336,256 Adlai E. Stevenson H.S. District #125 20,985,000 37.71% 7,913,444 Wheeling Township H.S. District #214 71,550,000 3.93% 2,811,915 Harper Community College #512 182,990,000 1.80% 3,293,820 College of Lake County #532 20,535,000 4.89% 1,004,162 Total School Districts 352,295,000 27,936,917 Other Than School Districts Lake County 82,495,000 4.89% 4,034,006 Lake County Forest Preserve 305,415,000 4.89% 14,934,794 Cook County 3,706,435,000 0.24% 8,895,444 Cook County Forest Preserve 187,950,000 0.24% 451,080 Metropolitan Water Reclamation District 2,238,816,507 0.25% 5,597,041 Buffalo Grove Park District 15,960,000 95.49% 15,240,204 Wheeling Park District 9,885,000 6.51% 643,514 Total Other Than School Districts 6,546,956,507 49,796,082 Total Overlapping Debt 6,899,251,507 77,732,999 Total Village of Buffalo Grove Direct Debt $ 12,280z000 100.00% 12,280,000 Total Direct and Overlapping Debt $ 6,911,531,507 90,012,999 *Determined by ratio of assessed valuation of property subject to taxation in the Village of Buffalo Grove to valuation of property subject to overlapping unit. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of Buffalo Grove. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 123 VILLAGE OF BUFFALO GROVE, ILLINOIS Schedule of Legal Debt Margin December 31,2012 Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as set by the General Assembly_ 124 DEMOGRAPHIC AND ECONOMIC INFORMATION VILLAGE OF BUFFALO GROVE, ILLINOIS Demographic and Economic Statistics Last Ten Years Equalized Per Capita Fiscal Assessed Personal Year PO,Eulation Value {EAVl EAV 2012 42,330 (E) $ 1,566,342,112 37,003 2011 41,911 (E) 1,664,431,364 39,714 2010 41,496 (A) 1,774,100,787 42,754 2009 41,980 (E) 1,896,782,514 45,183 2008 42,170 (E) 1,881,094,422 44,607 2007 * 42,440 (E) 1,810,821,475 42,668 2007 42,564 (E) 1,677,222,407 39,405 2006 42,851 (E) 1,608,264,793 37,532 2005 43,195 (A) 1,492,778,540 34,559 2004 42,963 (A) 1,393,418,384 32,433 2003 43,100 (E) 1,319,372,268 30,612 (A) Actual (E) Estimate *Transitional fiscal year May 1, 2007 through December 31, 2007. (l) US Census (2) Northern Illinois University Estimate (3) American Community Survey 3 Year Estimates Data Source U.S. Department of Labor, Bureau of Labor Statistics 125 Personal Per Capita Unemployment Income Income Rate 1,891,582,681 44,687 (E) 7.1% 1,854,311,029 44,244 (E) 7.6% 1,817,773,776 43,806 (3) 8.4% 1,802,196,362 42,930 (E) 7.8% 1,774,145,979 42,071 (E) 4.8% 1,749,795,121 41,230 (E) 3.7% 1,719,809,470 40,405 (E) 3.2% 1,696,777,664 39,597 (E) 3.2% 1,676,191,104 38,805 (E) 3.8% 1,709,669,622 39,794 (2) 4.2% 1,680,818,972 38,998 (E) 4.8% VILLAGE OF BUFFALO GROVE, ILLINOIS Principal Village Employers Current Year and Nine Years Ago Em12lo~er Siemens Building Technologies SMS-NA USA Rexam (1) Dominick's Finer Foods (three locations) GSF -USA, Inc Plexus Corporation Harris Trust & Savings Bank Dell Tenex Corp Amerisource Bergen Technology Group Crosscom National, Inc Leica Microsystems, Inc ASAP Software RG Ray Corporation Federal Express Allstate Insurance Company Village of Buffalo Grove Data Source Village Records -earliest available records (1) prior to 2005 -Courtesy Corporation Em12lo~ees 2,000 1,200 800 483 450 370 350 225 220 200 200 200 2012 Rank 1 2 3 4 5 6 7 8 9 lO 10 lO 126 2003 Percent Percent of Total of Total Village Village P012ulation Em12lo~ees Rank P012ulation 4.72% 1,036 2 2.41% 2.83% 1.89% 585 3 1.36% 1.14% 480 4 1.12% 1.06% 0.87% 400 5 0.93% 0.83% 350 6 0.81% 0.53% 0.52% 0.47% 0.47% 0.47% 2lO lO 0.49% 245 8 0.57% 300 7 0.70% 1,250 1 2.91% 239 9 0.56% OPERATING INFORMATION VILLAGE OF BUFFALO GROVE, ILLINOIS Full-Time Equivalent Employees Last Ten Years Function/Program 2012 2011 2010 2009 2008 General Government Administration Village Manager's Office 4.5 4.0 4.0 4.5 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 Finance 8.5 8.5 8.5 9.0 9.5 Building and Zoning 10 10.0 10.0 10.0 10.5 Public Safety Police Full-Time Police Officers 69 69 69.0 71.0 71.0 Community Service Officers 3 3 3.0 3.0 3.0 Civilians 16.5 17.5 17.5 20.5 21.5 Fire Full-time Firefighters/Paramedics 62 62.0 62.0 62.0 62.0 Civilians 3.5 6.0 6.0 6.0 6.0 Public Works Pubic Works Administration 11.0 11.0 12.0 12.0 14.5 Streets/F orestry 20.0 20.0 20.0 20.0 20.0 Water and Sewer 13.0 13.0 13.0 13.0 14.0 Central Garage 5.5 5.5 5.5 5.5 5.0 Building Maintenance 4.0 4.0 4.0 4.0 4.0 Recreation Administration 13.5 13.5 13.5 13.5 13.5 Grounds Maintenance 15.0 15.0 15.0 15.0 15.0 264.0 267.0 268.0 274.0 279.5 Recreation Seasonal 34.0 34.0 34.0 34.0 34.0 *Transitional fiscal year May 1, 2007 through December 31, 2007. Data Source Village Finance Department 127 2007* 2007 2006 2005 2004 5.0 4.5 4.5 4.5 4.5 1.5 1.5 1.5 2.0 2.0 3.5 3.5 3.0 3.0 3.0 9.5 9.5 9.5 9.5 10.0 10.5 10.5 10.5 10.5 10.5 71.0 70.0 70.0 71.0 70.0 3.0 3.0 3.0 3.0 3.0 21.5 22.5 22.0 22.5 22.0 61.0 62.0 62.0 62.0 62.0 6.0 6.0 5.0 5.0 5.0 14.5 14.5 15.5 15.5 15.5 20.0 20.0 19.0 20.0 21.0 14.0 14.0 13.0 10.0 11.0 5.0 4.0 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 15.0 278.5 278.0 276.0 276.0 277.0 34.0 34.0 34.0 34.0 34.0 128 VILLAGE OF BUFFALO GROVE, ILLINOIS Operating Indicators Last Ten Fiscal Years Function/ProS,!am 2012 2011 2010 2009 General Government Building and Zoning Building Permits Issued 2,206 1,930 1,959 1,922 Building Inspections Conducted 15,858 9,661 7,088 6,633 Property Maintenance Inspections Conducted 5,828 3,462 3,158 2,348 Public Safety Police Physical Arrests 671 820 981 989 Parking Violations 3,341 2,031 2,062 3,267 Traffic Violations 10,826 11,867 11,999 11,373 DUI Arrests 107 164 222 267 Vehic1e Crashes 1,260 1,396 1,391 1,414 Fire Ambulance Calls/EMS 2,789 2,568 2,743 2,553 Service Call 487 1,053 610 718 Fire Call 698 737 735 774 Auto Aid/Mutual Aid 680 676 654 672 Public Works Streets Street Resurfacing (Miles) 5.51 2.90 3.00 4.94 Parks and Recreation Park Sites 46 46 46 46 Golf Courses -Combined Golf Rounds Played -Paid 59,937 56,918 52,740 59,723 Water New Connections (Tap-ons) 15 12 50 7 Average Daily Consumption * 3.917 4.09 4.30 4.21 Peak Daily Consumption * 7.927 7.84 7.30 7.29 *(millions of gallon) * *Transitional fiscal year May 1, 2007 through December 31, 2007. N/ A -not available Data Source Various Village Departments 129 2008 1,746 5,054 2,159 1,085 3,451 15,795 337 1,786 2,590 751 881 689 4.94 46 58,097 25 4.089 7.027 2007** 1,695 21,383 2,962 2,143 4,721 12,010 482 1,555 2,943 678 858 379 8.23 46 60,258 33 4.347 8.393 2007 1,282 13,416 3,448 N/A N/A N/A N/A N/A 2,583 684 788 406 8.30 46 61,005 98 4.613 8.882 2006 2,011 14,744 4,530 2,489 4,751 12,010 457 1,692 2,668 614 810 315 8.25 46 60,678 6 5.094 9.791 130 2005 1,843 12,058 3,260 2,609 5,598 12,312 440 1,719 2,610 645 810 360 8.59 46 61,937 16 4.668 8.577 2004 2,099 11,597 3,057 2,673 4,990 10,181 452 1,842 2,622 682 788 403 6.95 46 60,275 66 4.733 9.024 VILLAGE OF BUFFALO GROVE, ILLINOIS Capital Asset Statistics Last Ten Fiscal Years Function/Pro~ram 2012 2011 2010 2009 2008 Public Safety Police Stations 1 1 1 1 1 Patrol Units 34 36 36 36 36 Fire Stations 3 3 3 3 3 Fire Apparatus 21 21 21 21 20 Public Works Streets Streets (Miles) 117.70 117.70 117.70 117.70 117.50 Streetlights 2,778 2,778 2,745 2,743 2,714 Water Water Mains (Miles) 180.25 180.25 179.83 179.82 180.63 Fire Hydrants 2,475 2,475 2,475 2,474 2,474 Wastewater Sanitary Sewers (Miles) 139.27 139.27 139.27 139.27 139.24 *Transitional fiscal year May 1, 2007 through December 31, 2007. Data Source Various Village Departments 131 2007* 1 36 3 20 117.50 2,614 179.57 2,468 139.12 2007 1 35 3 20 117.50 2,374 178.36 2,449 138.72 2006 1 35 3 20 117.50 2,374 178.36 2,449 138.72 2005 1 35 3 20 117.50 2,374 178.36 2,449 138.72 132 2004 1 35 3 20 117.50 2,374 178.36 2,449 138.72