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2014 PAFRVillage of Buffalo Grove 2014 A Citizens Guide to Local Financial Activities Fiscal Year Ended December 31, 2014 A Message From the Village President Transparency is a high priority to your elected leaders. Your Elected Officials Digital Village Services Public Records Looking for meeting information, to contact elected officials, review financial information or request public records? One visit to the Village’s Transparency Portal web page brings all of this information and more at the click of a mouse. http://www.vbg.org/817/ Village-Transparency Full Financial Report, Budget, Annual Treasurers Report, and more on Village Website The full CAFR is online. Plus more financial data is available at the Village of Buffalo Grove website atwww.vbg.org. Access current and historical Financial Reports, Budgets, Treasurers Reports and other financial information. As part of the Village’s strategic plan, several digital services have recently been launched or will be available soon. The Village wants you to be able to conduct your business from the convenience of your home computer or mobile device! Village Clerk’s Office The Village Clerk and Deputy Village Clerk maintain all of the Village’s official records, meeting minutes and documents on behalf of our residents. In addition, a range of services includ- ing business and liquor licensing, voter registration and munici- pal code updates are provided daily. Contact the Village Clerk’s office at (847) 459-2511. Welcome to the Village of Buffalo Grove’s “A Citizen’s Guide to Local Financial Activities” for the fiscal year ended December 31, 2014. This report is intended to provide the residents of Buffalo Grove an overview of the Village’s progress and financial performance. This report summarizes the financial activities of the Village and is not intended to replace the full disclosure financial statements. This format presents financial data in a manner that gives every resident the opportunity to gain a general understanding of the Village’s major initiatives and financial activities for the fiscal year-end 2014. The full disclosure financial statement, the Comprehensive Annual Financial Report (CAFR), can be viewed at www.vbg.org. Thank you for taking the time to review this report, those residents who wish to review the Village’s financial data more in depth should refer to the 2014 CAFR. The Village Board and I appreciate your input regarding the contents of this report. It has been prepared as a tool for its readers regardless of financial background or training and we hope our commitment to maintain open communication and transparency with our residents is demonstrated within the material presented. Although a condensed report, the presentation of financial information in this Citizen’s Report conforms to generally accepted accounting principles (GAAP) and related reporting stand- ards. I hope you gain a clear and transparent view of our government while reviewing this report and I encourage all residents to take an active part in our local government and community. Our community gains strength every time a person, who calls Buffalo Grove home, invests their resources, time, and talents to make Buffalo Grove one of the best places to live. Sincerely, Jeffrey S. Braiman Village President Jeff Berman, Trustee Lester Ottenheimer, Trustee Andrew Stein, Trustee Beverly Sussman, Trustee Mike Terson, Trustee Steven Trilling, Trustee Follow the Village of Buffalo Grove on Social Media The Village of Buffalo Grove has joined social media! Find out about special events, news updates, and more by following us on Twitter, liking us on Facebook, and adding us on LinkedIn. Always know what is happening in your Vil- lage by tuning in through so- cial media. www.vbg.org Pay with Credit and Debit Cards at the Village of Buffalo Grove All licenses, fees, fines, registrations, permits, and bills can be paid via credit card. All credit card transactions are subject to a convenience fee of $1.80 per water payment and 2.39% for all other transactions. The fee is processed by a third party credit card provider. The Village currently accepts: Quality of Life in Buffalo Grove Buffalo Grove in Top 20 Safest Places to Live Neighborhood Scout named Buffalo Grove to its 100 Safest Cities in the U.S. Based on criteria such as crimes per 1,000 residents, total crimes and population greater than 25,000. Buffalo Grove continues to be a great place to live! Police Department 2014 Illinois Traffic Safety Challenge 1st Place Buffalo Grove Police De- partment is awarded first place by the Illinois Chiefs of Police Traffic Safety Challenge. The officers excelled at Municipal Cate- gory 51-65, Commercial Vehicle and Distracted Driving enforcement. Enjoying Buffalo Grove Buffalo Grove Days Labor Day Weekend Enjoy food, fun, music, carnival games, fire- works and more at this four-day celebration. Located on the munici- pal campus at Lake Cook Road and Raupp Boulevard. Buffalo Grove Wins Tree City USA Award for 27th Consecutive Year Tree City USA recog- nized the Village of Buffalo Grove for its dedication to communi- ty forestry manage- ment. The Village maintains a forestry department, has com- munity tree ordinances, spends over two dollars per capita on trees and celebrates Arbor Day. The Village of Buffa- lo Grove is located approximately 33 miles northwest of downtown Chicago and 20 miles north of O’Hare International Airport. The Village’s land area is 9.3 square miles, with 21.7 percent of the area in Cook County and 78.3 percent in Lake County. Neighboring communities include Arlington Heights, Lincolnshire, Long Grove, Riverwoods, Vernon Hills and Wheeling. The Village’s current population is 41,987 (2014 Village estimate). Buffalo Grove was incorporated in 1958 and experienced strong growth in population and land area for several decades. The Village’s Comprehensive Plan projects the Village’s land area could reach approximately 11.2 square miles. The Village has ex- cellent transportation access for residents, businesses, employees and visitors. The Village is served by the Metra North Central rail line connecting to downtown Chicago and O’Hare airport. Pace bus service provides access to adjacent communities, the Metra Milwaukee District North rail line and the Skokie Swift CTA Yellow Line. The regional road system serving the Village includes Aptakisic Road, Buffalo Grove Road, Lake Cook Road, and state routes 21, 22, 45 and 68, with direct links to Route 53 and Interstate 94. The Village’s commercial base includes several corporate business parks, a diverse retail sector and a wide range of profes- sional services, including medical facilities. The Village’s residential areas include single-family neighborhoods, town- homes, condominiums and apartments. The housing stock is very di- verse, with units of differ- ent sizes and designs available at various price points to serve the community’s population. From January through December, Buffalo Grove offers many opportunities to enjoy community. Buffalo Grove residents place a high priority on quality events and programs for their families. During the warmer summer months, many events are going on throughout the Village, such as: Rotary Village Green concerts Lawn Chair Lyrics Movies Under the Stars Farmer’s Market Green Fair Buffalo Grove Symphonic Band Buffalo Grove Singers Buffalo Grove Days National Night Out Fourth of July Fireworks Golf at Buffalo Grove and Arboretum Golf Courses And, in the winter, there is plenty more to do inside, with many sports and extracur- ricular activities offered by the Buffalo Grove Park District, Buffalo Grove Recreation Association, township, library and local school district programs. Did You Know? Buffalo Grove boasts more than 800 acres of parks and open space—or 834 square feet of space per person. That’s 4.5 times more than Chicago! Comparative Data Buffalo Grove State of Illinois Median Income $94,391 $56,797 Median Housing Unit Value $304,100 $182,300 Homeownership Rate 80.6% 67.5% Unemployment % 5.7% 6.2% Persons below poverty line 4.6% 14.1% Buffalo Grove Statistical Trends 2014 2013 2012 Population 41,987 41,778 42,330 Income Per capita $46,183 $45,057 $44,687 Unemployment % 5.70% 6.80% 7.10% Debt per Capita $251.27 $271.43 $289.64 Streets Resurfaced 3.28 mi 10.84 mi 5.51 mi Farmer’s Market June to October Ranked Illinois’ best Farmer’s Market, come out to Mike Rylko Park on Sundays from 8:00 AM to 12:30 PM for the best in local food! Village of Buffalo Grove win’s 33rd Consecutive CAFR Award The Village of Buffalo Grove received its 33rd consecutive certificate of achievement for excel- lence in financial report- ing. The award criteria are based on the presen- tation of the annual finan- cial report in a manner that provides transparen- cy and full disclosure of the entity’s fiscal year. Providing this report goes beyond the minimum re- quirements of generally accepted accounting prin- ciples. The Village has also complied with Gov- ernmental Accounting Standards Board stand- ards as they have changed the manner in which post employment benefits are presented and disclosed. This is the highest honor from the Government Finance Officers Association. Village of Buffalo Grove win’s 3rd Consecutive Distinguished Budget Award The Village achieved its goal for the third year in a row being awarded the Distinguished Budget Award for 2014. The method for which the Vil- lage of Buffalo Grove budget is compiled takes into account the guide- lines provided by the Na- tional Advisory Council on State and Local Budget- ing and the Government Finance Officers Associa- tion’s best practices on budgeting. The award shows the continued suc- cess of Village staff to produce a high quality document that is fiscally responsible. This is the highest budgetary honor that is bestowed on a community from the Gov- ernment Finance Officers Association. The Village relies on various tax sources as they make up 84.97percent of the total revenue into the Village. These revenues give the Village the ability to provide essential public services. The table at right shows the actual amounts the Village collected for each revenue source for governmental activities. Miscellaneous income is mostly comprised of one-time, extraordinary items and grant funds. These funds are responsible for covering the costs of the services the Village of Buffalo Grove provides. Property and other taxes are tied to the core services that the Village provides. Proposed Legislation in the Illinois General Assembly could reduce the amount of revenue the Village is able to collect from income tax, use tax, and other taxes the state collects and distributes back to municipalities. The Village allocates a significant amount of resources to core services such as Police, Fire, and Public Works. The graphs on this page show how the Village has allocated its resources in fiscal year 2014. The bar graph provides a visual representation of how many actual dollars were spent on each function. Public Safety and Public Works combine for more than $34,356,000. The general government expenditures are five times less than Public Safety and Public Works. General Government includes: Office of the Village Manager, Finance Depart- ment, Human Resources, and Building and Zoning. Capital outlay and debt service are also tied into Public Safety and Public Works. Capital outlay was over 80 percent dedicated to non- general government activities. All of the debt service is related to infrastructure which was ex- pended by Public Works. When those amounts are allocated back to their uses the total ex- penditures for Public Safety and Public Works tops $36,750,000. The Village of Buffalo Grove expended over 84 percent of its resources on Public Safety and Public Works. Property Taxes,  36.52% Other Taxes,  48.45% Licenses  and  Permits, 0.74% Intergovernment,  2.51% Fines and  Forfitures, 4.15%Charges for  Services, 2.55% Investment  Income, 0.14% Miscellaneous,  4.94% 2014 Revenues by Source  ‐  5,000,000  10,000,000  15,000,000  20,000,000  25,000,000 General Government Public Safety Public Works Capital Outlay Debt Svc 6,468,700  21,952,614  12,404,718  1,347,276 1,325,396  2014 Expenditures by Function ($) Revenue Source Amount ($) Property Taxes 14,504,750 Other Taxes 19,240,365 Licenses and Permits 294,622 Intergovernmental 997,371 Fines and Forfeitures 1,647,364 Charges for Services 1,010,868 Investment Income 54,522 Miscellaneous 1,963,074 How are Village Resources Expended? Where Do Village Resources Come From? Buffalo Grove Wins 1st PAFR Award The Village of Buffalo Grove was awarded its first Popular Annual Financial Reporting (PAFR) Award for the fiscal year 2013. This was the first year the Village prepared a PAFR. The PAFR is a summary of the Comprehensive Annual Financial Re- port (CAFR) issued by the Village and is meant to be a document that can communicate the financial information of the Village to those residents without a background in finance. Budgeted Employment by Department—2014 28.5 81 59.5 54.5 32.5 0 10 20 30 40 50 60 70 80 90 Administration Police Department Fire Department Public Works Golf Emergency Management Agency The Village maintains an emergency management agency to provide re- sponse to natural or man -made disasters in our community. Working throughout the year and behind the scenes, EMA volunteers prepare for worst case scenario events, network with other EMA local and re- gional agencies and pro- vide support services to other events throughout the Chicagoland area. The Emergency Man- agement Director is Dep- uty Chief Mike Baker. Reverse 911 Do you want the Village to be able to contact you in the event of a commu- nity emergency? If so, make sure to sign up through the Village’s web site: http://www.vbg.org/830/ Everbridge-Citizen- Portal You can choose to receive email, text and phone alerts, and your contact information will never be sold or used for another purpose. Emerald Ash Borer Removal Continues The Village of Buffalo Grove removed 2,000 more trees in 2014 and planted 1,800. The project is scheduled to remove 6,000 infected trees. The Village will plant 3,100 trees in 2015 and 2,200 in 2016. When the project concludes in the Fall of 2016 the Village will have planted 7,300 trees of 29 different species. Buffalo Grove Employees Participate in Annual Bike to Work Week From Left: Trustee Mike Terson, Ofc. Mike Ro- driguez, Deputy Police Chief Mike Szos, Pur- chasing Director Brett Robinson, Community Development Clerk Su- san Levy, Village Plan- ner Nicole Woods, Vil- lage Manager Dane Bragg, Ofc. Matt Mills and Village Engineer Darren Monico. As a full service organization, the Village of Buffalo Grove pro- vides critical water, wastewater, storm water, street, pedestrian and pathway, forestry and grounds maintenance services. Public Safety is a high priority for the Village and its residents. Comprising 65 percent of Village employees, the Buffalo Grove Fire and Police Departments provide the highest quality safety services to residents and businesses. Some of the programs offered by the departments include: Coffee with a Cop Infant/Child Seat Safety Checks Home Security Inspections School Crossing Guards School Resource Officers Citizen & Junior Police Academies Bicycle Registration Care Trak Program Premise Alert Notifications Police Social Worker CPR Classes School Fire Drills Smoke Education Trailer Open House Block Parties Station Tours Public Safety Services Infrastructure and General Services With a dedicated staff of 41 professional maintenance personnel, the Public Works De- partment provides around the clock infrastructure services, ranging from maintenance of Village facilities to providing clean, high-quality Lake Michigan water. Always there to serve, our team of professionals strives to maintain a clean, attractive and high-functioning network of streets, sewers, mains and paths for your enjoyment. The Village also provides administrative support to its residents and departments through its Building and Zoning, Finance, and Office of the Village Manager personnel. Compris- ing 11 percent of the Village’s staffing complement, these professionals specialize in the building and construction trades, architecture, technology, accounting, finance, technical analysis and management fields. Police Department Number Physical Arrests 886 Parking Violations 3,634 Traffic Citations 8,349 DUI Arrests 154 Vehicle Crash Responses 1,429 Fire Department Number Ambulance Calls 3,385 Service Calls 1,245 Fire Calls 821 Auto Aid/MABAS 1063 Did you know? The Village of Buffalo Grove Maintains 118.20 miles of streets and has resurfaced 22.53 miles in the last four years. Equalized Assessed Valuation 2014 Village EAV $1,414,244,088 Total EAV Per Capita $33,683 Village of Buffalo Grove holds high- est Bond Rating attainable Moody’s Investor Ser- vices currently recogniz- es the Village as Aaa bond rated for its exist- ing debt. The rating by Moody’s was assigned in 2012. The Village is also rated AAA by Standard & Poor’s . The AAA rating was last af- firmed in 2010. Village of Buffalo Grove EAV increas- es for the first time since 2009 The Villages EAV in- creased from $1,417,116,013 in 2013 to $1,425,060,788 in 2014. This is the first increase in EAV since 2009. The increase of just over one half per- cent is an indicator that Assessed Property Val- ues in the Village are rebounding from the re- cent recession and should continue that trend. More commonly referred to as EAV, is the ratio of the total value of real estate compared to all oth- er properties in the jurisdiction of the government, which the gov- ernment has set as a basis for levying taxes. EAV calculations are different for residential and commercial prop- erties. In addition, Cook and Lake Counties use differing formulas to establish EAV. Buffalo Grove By the Numbers Top Ten Real Estate Tax Payers Equalized Assessed Valuation ($) Chevy Chase Business Park Ltd. 22,706,965 Penobscot Management 10,986,298 Hamilton Partners 10,187,546 Millbrook 9,032,568 REXAM Consumer Plastics 8,472,433 MFREVF - Windbrooke LLP 8,261,833 Riverwalk South LLC 8,206,726 Arthur J. Rodger and Co 7,625,134 Riverwalk II LLC 7,400,417 Aptakisic Creek Corp Park LLC 7,831,429 Tax Collection By Source Property 14,554,564 Sales & Home Rule 8,455,972 Income & Use 4,104,736 Telecommunication 1,679,653 Utility 2,819,427 Property Transfer 790,819 Other 1,113,831 Total 33,519,002 Tax Type Amount ($) General   Government 11% Public  Safety 41% Public  Works 27% Interest 1% Water  & Sewer 14% Refuse   Service 1%Golf  Courses 5% Use of Taxes By Function Fund Assets Liabilities Fund Balance Governmental Funds Major General 39,311,714 17,864,822 21,446,892 Facilities Development 379,621 2,678,4361 (2,298,810) Non-Major Motor Fuel 1,860,640 186,852 1,673,788 Metra Parking Lot 68,554 5,632 62,922 Debt Service 604,813 630,299 (25,468) Street Maintenance 865,632 119,187 746,445 Enterprise Funds Major Water & Sewer 39,125,187 1,782,720 37,342,467 Arboretum Golf Club 7,7773,294 132,015 7,641,279 Non-Major Buffalo Grove Golf Club 1,157,252 116,122 1,041,130 Refuse 835,055 0 835,055 Fiduciary Funds Pension Trusts 105,710,565 300,170 105,411,170 Agency 408,569 530,339 (121,770) TOTAL 268,100,896 48,452,519 173,755,100 2014 Balance Sheet ($) Capital Assets by Category Asset/Fund Governmental Enterprise Total Land 35,963,844 6,198,514 42,162,358 Construction in Progress 472,361 0 472,361 Buildings 22,722,897 10,284,359 33,007,256 Land Improvements 3,179,774 1,966,488 5,146,262 Equipment/Vehicles 12,954,041 94,510 13,048,551 TOTAL 98,943,527 48,874,788 147,818,315 Streets & Storm Sewers 56,706,008 0 56,706,008 Water & Sewer System 0 60,899,559 60,889,559 LESS: Accumulated De- preciation (76,735,943) (43,167,408) (119,903,351) By The Numbers: Village of Buffalo Grove Balance Sheet The Village of Buffalo Grove carries $5.53 of assets for every dollar of liability. The top three funds are the Pension Trust Funds, Water and Sewer Fund, and the General Fund. Major Funds account for 94 percent of the fund balance while minor funds account for 4 percent, net of the Fiduciary Funds. Capital Asset Values: What are the Villages most valuable assets? The Village’s infrastructure and other capital assets are main contributors to the Water and Sewer Fund and the General Fund balances. The Village’s water and sewer system is the most valuable capital asset. The Village’s streets and storm sewers are a very close second. The third highest is land. These three asset categories make up sixty percent of the capital assets, before depreciation. For every one hundred dollars Lake County residents pay in property taxes: - The Village of Buffalo Grove collects $9.90 - School Districts 102, 125, and 532 collect $71.41 - Lake County, Forest Preserve, Buffalo Grove Park District, Vernon Area Public Library, and Townships collect $18.69 For every one hundred dollars Cook County residents pay in property taxes: - The Village of Buffalo Grove collects $10.92 - School Districts 21, 214, and 512 collect $72.57 - Cook County, Forest Preserve, Buffalo Grove Park District, Indian Trails Public Library, Metropolitan Water Reclamation District of Greater Chicago and Townships collect $16.52 $100 of Property Taxes Collected—Lake County $100 of Property Taxes Collected—Cook County Village of Buffalo Grove Total Debt Outstanding 4th Smallest Amongst All Taxing Districts in Cook and Lake County The Village of Buffalo Grove, as of 12/31/14 has outstanding debt of $10,550,000, which is the 4th smallest of all taxing bodies. The following round out the five smallest debt issuers: School Dist 96 - $720,000 School Dist 103 - $2,515,000 School Dist 102 - $3,780,000 Village of BG - $10,550,000 Wheeling Park Dist - $12,770,000 The top five most indebted taxing bodies on the tax bills of residents are: Cook County - $3,466,835,000 Metropolitan Water Reclama- tion District of Greater Chicago - $2,642,374,000 Lake County Forest Preserve Dist - $274,450,000 Cook County Forest Preserve Dist - $172,535,000 Community College Dist 512 - $170,935,000 All of the five largest indebted taxing bodies share those outstanding debt figures among many other communities. Please refer to the statistical section of the CAFR for a full list of indebtedness of all agencies on your tax bill as well as the portions assessed to the Village of Buffalo Grove.