2015 CAFRCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
VILLAGE OF BUFFALO GROVE, ILLINOIS
As of and for the Year Ended December 31, 2015
Prepared by the Department of Finance and General Services
Scott Anderson
Director of Finance and General Services
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS
As of and for the Year Ended December 31, 2015
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal i - iv
Certificate of Achievement for Excellence in Financial Reporting v
Organizational Chart vi
List of Elected and Appointed Officials vii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1 - 3
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis 4 - 18
BASIC FINANCIAL STATEMENTS
Government-W ide Financial Statements
Statement of Net Position 19 - 20
Statement of Activities 21 - 22
Fund Financial Statements
Balance Sheet - Governmental Funds 23 - 24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 25
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 26
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 27
Statement of Net Position - Proprietary Funds 28 - 31
Statement of Revenues, Expenses and Changes in Net Position - Proprietary
Funds 32 - 33
Statement of Cash Flows - Proprietary Funds 34 - 37
Statement of Fiduciary Net Position - Fiduciary Funds 38
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 39
Index to Notes to Financial Statements 40
Notes to Financial Statements 41 - 92
REQUIRED SUPPLEMENTARY INFORMATION
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - General 93
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2015
Page(s)
REQUIRED SUPPLEMENTARY INFORMATION (cont.)
Historical Pension Information
Illinois Municipal Retirement Fund - Schedule of Changes in the Village's Net
Pension Liability and Related Ratios 94
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 95
Police Pension Fund - Schedule of Changes in the Village's Net Pension
Liability and Related Ratios 96
Police Pension Fund - Schedule of Employer Contributions 97
Police Pension Fund - Schedule of Investment Returns 98
Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension
Liability and Related Ratios 99
Firefighters' Pension Fund - Schedule of Employer Contributions 100
Firefighters' Pension Fund - Schedule of Investment Returns 101
Other Post Employment Benefits - Schedule of Employer Contributions and Schedule
of Funding Progress 102
Notes to Required Supplementary Information 103
SUPPLEMENTARY INFORMATION
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 104 - 105
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 106
Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual
Motor Fuel Tax - Nonmajor special revenue fund 107
Metra Parking Lot - Nonmajor special revenue fund 108
Debt Service - Nonmajor debt service fund 109
Street Maintenance - Nonmajor capital projects fund 110
Facilities Development - Major capital projects fund 111
Enterprise Funds
Combining Statement of Net Position - Nonmajor Enterprise Funds 112
Combining Statement of Revenue, Expenses and Changes in Fund Net Position -
Nonmajor Enterprise Funds 113
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 114
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2015
Page(s)
SUPPLEMENTARY INFORMATION (cont.)
Schedules of Revenues, Expenses and Changes in Fund Net Position - Budget
and Actual - Non-GAAP Budgetary Basis
Buffalo Grove Golf - Nonmajor enterprise Fund 115
Refuse Service - Nonmajor enterprise Fund 116
Water and Sewerage - Major enterprise Fund 117
Arboretum Golf - Major enterprise Fund 118
Combining Statement of Net Position - Internal Services Funds 119
Combining Statement of Revenues, Expenses and Changes in Fund Net Position -
Internal Service Funds 120
Statement of Revenues, Expenses and Changes in Fund Net Position - Budget and
Actual
Information Technology - Internal Service Fund 121
Central Garage - Internal Service Fund 122
Building Maintenance - Internal Service Fund 123
Combining Statement of Cash Flows - Internal Service Funds 124
Combining Statement of Fiduciary Net Position - Pension Trust Funds 125
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 126
Schedules of Changes in Fiduciary Net Position - Budget and Actual
Police Pension - Pension Trust Fund 127
Firefighters' Pension - Pension Trust Fund 128
Statement of Changes in Fiduciary Assets and Liabilities - School and Park
Donations - Agency Fund 129
STATISTICAL SECTION
Net Position by Component 130 - 131
Change in Net Position 132 - 135
Fund Balances of Governmental Funds 136 - 137
Change in Fund Balances of Governmental Funds 138 - 139
Assessed and Actual Value of Taxable Property 140 - 141
Property Tax Rates - Direct and Overlapping Governments 142 - 143
Principal Property Taxpayers 144 - 145
Property Tax Levy and Collections 146 - 147
Sales Tax Revenue and Number of Principal Payers - Revenue by Category 148 - 149
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2015
Page(s)
STATISTICAL SECTION (cont.)
Direct and Overlapping Sales Tax Rates 150
Ratio of Outstanding Debt by Type 151 - 152
Ratio of General Bonded Debt Outstanding 153
Direct and Overlapping Governmental Activities Debt 154
Schedule of Legal Debt Margin 155
Demographic and Economic Statistics 156
Principal Village Employers 157
Full-Time Equivalent Employees 158 - 159
Operating Indicators 160 - 161
Capital Asset Statistics 162 - 163
VlllAGE OF
BUFFALO GROVE
Department of Finance & General Services
Fifty Raupp Bl vd.
Buffalo Grove, IL 60089-2100
Phone 847-459-2500
Fax 847-459·0332
June 29, 2016
The Honorable Beverly Sussman
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, 2015 is submitted herewith. This report represents a comprehensive picture of the Village's
financial activities during Fiscal Year 2015 and the financial condition of its various funds at December 31,
2015. 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
oflicensed 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.
Baker Tilly, Independent Certified Public Accountants, have issued an unmodified (clean) opinion on the
Village's financial statements for the fiscal year ended December 31, 2015. The independent auditors'
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
ofBuffalo 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.
ii
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 216 full-time and 78 part-time/seasonal positions in the
Fiscal Year 2015 annual budget.
Budgetary Control and Accounting Systems
The annual budget serves as the foundation for the Village’s financial 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 31st of each year. The appropriated budget is prepared by fund, and department (e.g.,
police). Department directors may make transfers of appropriations within a department. Transfers of
appropriations between 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 705 licensed business 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 5.0 percent besting the state by 2.1 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 $9,274,777 which is an increase from the previous
year’s total of $8,455,972 an increase of 8.5 percent.
Income and Use Tax increased from $4,104,736 to $5,409,875 or 31.8 percent.
Real estate transfer taxes generated $904,311 in 2015 versus $790,819 in 2014.Sales of
commercial and industrial properties increased considerably in the current fiscal year.
The Village equalized assessed valuation increased by $8 million or .6 percent to $1.43 billion in the 2014
levy year.The increase is due primarily to new properties.
The unassigned fund balance of the General Fund will again exceed the 25 percent threshold of the
subsequent year’s budgeted expenditures, less non-operating transfers, which is policy established by the
Village Board.
iii
Unassigned Budgeted
Fiscal Year Ended Fund Balance Expenditures Percent
December 31, 2007 $14,991,907 $30,202,380 49.64%
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%
December 31, 2013 $12,395,113 $35,511,109*34.90%
December 31, 2014 $13,225,644 $37,083,251 35.67%
December 31, 2015 $14,991,907 $38,165,617 39.29%
*Budget number includes employer pension costs beginning in FY 2013.
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 the 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 $42.7 million in capital
improvements. Transportation-related projects represent a large percentage of the improvements at $24.9
million. Routine maintenance of existing streets accounts for $21 million of those projects. Approximately
$13.7 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-yo u-go approach to capital budgeting.The Reserve for Capital
Replacement Funding Report lists all Village owned vehicles, the service life, and its respective reserve
balance.
Major Initiatives
In 2015, the Village of Buffalo Grove issued over 2,500 commercial and residential building permits.
These permits represent a total project valuation of over $40,000,000 invested into the Buffalo Grove
community. In addition to building permit activity, the following major projects were approved in 2015:
Sky Fitness, a private fitness and recreational facility at 1501 Busch Parkway is adding 19,050 square feet
to their facility.
Hamilton Partners is building the next and final phase of the Chevy Chase Business Park at 1050 Johnson
Drive. This phase includes the development of a new multi-tenant, one-story 66,526 square foot warehouse
and office facility.
Flextronics recently opened a new facility at 700-800 Corporate Grove Drive in Buffalo Grove.
Representatives have stated they are in the process of investing over $100 million in their Buffalo Grove
facilities and have hired 300 employees.
Flextronics recently opened a new facility at 700-800 Corporate Grove Drive in Buffalo Grove .
Representatives have stated they are in the process of investing over $100 million in their Buffalo Grove
facilities and have hired 300 employees.
In 2015, 77 businesses opened, expanded and/or relocated in the Village of Buffalo Grove.
Developed and completed the Village's first Economic Development Strategic Plan.
The Village outsourced maintenance operations at both the Arboretum and Buffalo Grove Golf Course
resulting in significant savings on course maintenance costs .
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 31,2015. This was the thirty-third 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, 2015. 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 Deputy Finance Director Andrew Brown. 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.
Scott D. Anderson
Director of Finance/Village Treasurer
IV
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Buffalo Grove
lllinois
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31,2014
Executive Director/CEO
vi
Organizational Chart
Residents of Buffalo
Grove
Village
Board
Village
Manager
Community
Development
Building and
Zoning
Enviromental
Health
Planning and
Economic
Development
Police
Department
Patrol
Investigations
Youth Services
Admin
Police
Records
Fire
Department
Emergency
Management
Services
Fire
Suppression
and Rescue
Fire
Prevention
&Education
Emergnecy
Management
Agency
Office of the
Village
Manager
Legal
Human
Resources
Golf
Operations
Information
Technology
Finance
General
Services
Deputy
Village Clerk
Village
Treasurer
Procurement
Public
Works
Admin and
Building
Maintenance
Engineering
Operations
Central
Garage
Streets,
Drainage &
Sewer
Forestry
Water
vii
VILLAGE OF BUFFALO GROVE, ILLINOIS
List of Elected and Appointed Officials
December 31, 2015
Beverly Sussman Janet M. Sirabian
Village President Village Clerk
Board of Trustees
Jeffrey Berman Andrew Stein
Joann Johnson Steven Trilling
Lester Ottenheimer David Weidenfeld
Appointed Officials
Dane Bragg
Village Manager
Jennifer Maltas Scott Anderson
Deputy Village Manager Finance Director/Village
Treasurer
Steven Casstevens Mike Baker
Chief of Police Fire Chief
Michael Reynolds Arthur Malinowski
Public Works Director Human Resource Director
Darren Monico Christopher Stilling
Village Engineer Director of Community
Development
Geoff Tollefson Brian Sheehan
Golf Course Manager Building Commissioner
~AKER TILLY
Baker Ti lly Vi rchow Krause, LLP
130 I W 22nd St, Ste 400
Oak Brook, IL 60523 -3389
te l 630 990 313 1
fax 630 990 0039
bake rtill y.com
INDEPENDENT AUDITORS' REPORT
To the Village President and Board of Trustees
Village of Buffalo Grove
Buffalo Grove , Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities , the business-type
activities, each major fund , and the aggregate remaining fund information of the Village of Buffalo Grove ,
Illinois , as of and for the year ended December 31 , 2015 , and the related notes to the financial statements,
which collectively comprise the Village of Buffalo Grove's basic financial statements as listed in the table of
contents.
Management's Responsibility fo r 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.
Auditors' Responsibility
Our responsibility is to express opin ions on these financial statements based on our audit. We did not audit the
financial statements of the investment in joint venture , which represent 13 .61 percent and 14 .96 percent,
respectively, of the assets and net position of the business-type activities and 16.76 percent and 18.68 percent,
respectively , of the assets and net position of the Water and Sewerage Fund. Those statements were audited
by other auditors whose report has been furn ished to us, and our opinion , insofar as it relates to the amounts
included for investment in joint venture , is based solely on the report of the other auditors . 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 auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements , whether due to fraud or error. In mak ing those
risk assessments, the auditor considers internal control relevant to the Village of Buffalo Grove'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 ex pressing an opinion on the effectiveness of the Village of Buffalo
Grove's internal control. Accordingly , we ex press 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 .
~ an Independent member of
BAKER TILLY
INTERNATIONAL
Page 1
To the Village President and Board of Trustees
Village of Buffalo Grove
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the Village of Buffalo
Grove, Illinois, as of December 31, 2015 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.
Emphasis of Matter
As discussed in Note I, the Village of Buffalo Grove adopted the provisions of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 and GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an
amendment of GASB Statement No. 68, effective January 1, 2015. Net position as of January 1, 2015 has been
restated as a result. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required
supplementary information as listed in the table of contents 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 financial 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 responses 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Buffalo Grove's basic financial statements. The supplementary information as listed in
the table of contents is presented for purposes of additional analysis and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements. The
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 supplementary information is fairly stated in all
material respects, in relation to the basic financial statements as a whole.
Page2
To the Village President and Board of Trustees
Village of Buffalo Grove
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Buffalo Grove's basic financial statements. The introductory section and statistical
section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information has 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 it.
g'~rdltJV~K'~1 LLP
Oak Brook, Illinois
June 29, 2016
Page 3
- 4 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
The Village of Buffalo Grove’s Management’s Discussion and Analysis (MD&A) offers the readers of the Village of
Buffalo Grove’s financial statements this narrative overview and analysis of the financial activities of the Village of
Buffalo Grove for the fiscal year ended December 31, 2015. This information presented here should be considered in
conjunction with additional information provided in the letter of transmittal, which is found on pages i-iv.
Financial Highlights
• The assets and deferred outflows of the Village exceeded its liabilities and deferred inflows at December 31,
2015 by $64.1 million (net position). The Net Position for governmental activities is $17.9 million or 28.0
percent of the total and business-type activities account for $46.2 million. Of this amount, $(26.8) million is
unrestricted, the negative amount of unrestricted assets is directly related to the recognition of all the
Villages pension obligations as noncurrent liabilities, which increased from $13.1 million in 2014 to $70.6
million in 2015.
• The Village’s net position decreased by $47.2 million (or 42.4 percent) during the fiscal year ending
December 31, 2015. The governmental net position decreased by $46.5 million (72.2 percent) and the
business-type activities net position decreased by $0.7 million (1.5 percent).
• As of December 31, 2015, the Village of Buffalo Grove’s general fund reported combined ending fund
balances of $23.3 million, an increase of $ 1.9 million from the prior year. Of this amount, $15.0 million was
unassigned.
• The Village’s total debt decreased by $0.5 million (or 5 percent). Total debt outstanding is $10.0 million.
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 financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements.
Government-wide financial statements
The government-wide financial statements (found on pages 19-22) are designed to provide readers with a broad
overview of the Village’s finances statements 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 deferred outflows and liabilities and
deferred inflows, 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).
- 5 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
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 23-27) are used to account for primarily the same functions reported as
governmental activities in the government-wide financial statements. The focus, unlike the government-wide financial
statement, is on the sources and 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 financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand the
long-term impact of the government’s near-term financing decisions. Both the governmental 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 six 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 and Facilities Development Funds, which are classified as major funds. Data on the
other four 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 28-37) are used to report the same functions presented as business-type activities in
the government-wide financial 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 financial statements, only in more detail. The proprietary fund
financial statements provide separate information for the Water and Sewerage Fund and the Arboretum Golf Fund as
they are considered to be major funds. The basic proprietary fund financial statements can be found on pages 28-37
of this report.
Fiduciary Funds (see pages 38-39) are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of
those funds are not available to support the Village’s own programs. The accounting used for fiduciary funds is much
- 6 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 38-39 of this
report. Notes to the financial statement provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements. The notes to the financial statements can be
found on pages 40-92 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 93-103 of this report.
Government-wide Financial Analysis
The assets and deferred outflows of the Village of Buffalo Grove exceeded liabilities and deferred inflows by $64.1
million as of December 31, 2015. The largest portion of the Village’s net position reflects its investment in capital
assets (138.8 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 ($1.9 million) represents resources that are subject to external
restrictions on how they may be used. $1.8 million is restricted for contractual construction obligations including the
street project that was debt financed. The remaining balance of unrestricted net position ($(26.8) million) reduces
total net position significantly due to GASB 67 and 68, which requires the Village to show the outstanding pension
obligations in noncurrent liabilities. The total decrease in unrestricted net position from the prior year is 49.0 million
(222.7 percent).
The Village’s combined net position decreased by $47.2 million as a result of governmental activities decreasing by
$46.5 million and business-type activities decreasing by $0.7 million. The net position of the Village’s governmental
fund was $17.9 million. The Village’s unrestricted net position for governmental activities that are available for day-to-
day financial operations were $(34.6) million compared to $11.0 million at December 31, 2014. The net position of
business-type activities was $46.2 million. The business type activities unrestricted net position decreased by $3.2
million from the previous year.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
Please refer to table below for condensed Statement of Net Position:
Table 1
Village of Buffalo Grove’s Net Position
As of December 31, 2015
(in millions)
Governmental Business-Type
Activities Activities Total
2015 2014* 2015 2014* 2015 2014*
Current and Other Assets $42.8 $43.7 $10.8 $12.6 $53.6 $56.3
Capital Assets 54.6 55.3 39.9 36.3 94.5 91.6
Total Assets $97.4 $99.0 $50.7 $48.9 $148.1 $147.9
Deferred Outflows 12.7 0.1 0.5 0.0 13.2 0.1
Long-Term Liabilities 67.9 12.5 2.7 0.6 $70.6 $13.1
Other Liabilities 6.6 7.5 2.2 1.4 8.8 8.9
Total Liabilities $74.5 $20.0 $4.9 $2.0 $79.4 $22.0
Deferred Inflows 17.7 14.7 0.1 0.0 17.8 14.7
Net Position:
Net Investment in Capital Assets $50.6 $50.7 $38.4 $35.9 $89.0 $86.6
Restricted 1.9 2.7 0.0 0.0 1.9 2.7
Unrestricted (34.6) 11.0 7.8 11.0 (26.8) 22.0
Total Net Position $17.9 $64.4 $46.2 $46.9 $64.1 $111.3
*Prior year information has not been updated for the effects of restatement due to the implementation of GASB statement No. 68
and No. 71 in 2015.
Normal Impacts
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.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
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 investment in capital
assets.
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 decrease in “Current and Other Assets” of $0.9 million is attributed to
the elimination of the net pension asset line item ($0.6 million in 2014). The Village experienced an increase in
receivables for taxes of 0.7 million in 2015 (3.8 percent). Due to the current uncertainty of the State of Illinois and
lack of an operating budget the Village of Buffalo Grove took a more liquid approach to its investment strategy as the
State of Illinois withheld and delayed many tax revenues from the Local Government Distributive Fund. This strategy
is reflected in the shift downward in investments and increase in cash and equivalents. The Village continued to
receive funding for capital improvements from the State of Illinois Department of Commerce and Economic
Opportunity. These funds are designated for street and bridge improvements. The excess receivable for water and
sewer accounts, $0.14 million (10 percent), was derived from an increase in the rates for those services.
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” are
primarily as a result of depreciation.
Changes in Net Position.
The Village’s total revenues and expenses for governmental and business-type activities are reflected in the following
chart:
- 9 -
Village of Buffalo Grove Changes in Net Position
For the Years Ended December 31, 2015 and 2014
Governmental Business-Type Total Primary
Activities Activities Government
Revenues 2015 2014* 2015 2014* 2015 2014*
Program Revenues
Charges for Service 3.4 3.6 12.9 12.4 16.3 16.0
Grants and Contributions
Operating 1.2 1.3 - - 1.2 1.3
Capital - - - - - -
General Revenue
Property Tax 14.7 14.6 - - 14.7 14.6
Sales and Use Tax 9.3 8.5 - - 9.3 8.5
Income Tax 5.4 4.1 - - 5.4 4.1
Telecommunications Tax 1.6 1.7 - - 1.6 1.7
Utility Taxes 2.6 2.8 - -
2.6 2.8
Property Transfer Tax 0.9 0.8 - - 0.9 0.8
Other 2.7 2.6 - 0.5 2.7 3.1
Total Revenue 41.8 40.0 12.9 12.9 54.7 52.9
Expenses
Governmental Activities
General Government 5.9 5.8 5.9 5.8
Public Safety 27.2 22.9 27.2 22.9
Public Works 11.6 13.6 11.6 13.6
Interest 0.3 0.3 0.3 0.3
Business Type
Water and Sewer
8.5 8.4 8.5 8.4
Refuse Services 0.7 0.8 0.7 0.8
Golf 3.3 2.8 3.3 2.8
Total Expenses 45.0 42.6 12.5 12.0 57.5 54.6
Excess before transfers and special items (3.2) (2.6) 0.4 0.9 (2.8) (1.7)
Transfers In (Out) 0.8 1.1 (0.8) (1.1) - -
Special items - - - -
Change in Net Position (2.4) (1.5) (0.4) (0.2) (2.8) (1.7)
Net position - beginning (as restated) 20.3 65.9 46.6 47.1 66.9 113.0
Net position – ending 17.9 64.4 46.2 46.9 64.1 111.3
*Prior year information has not been updated for the effects of restatement due to the implementation of GASB Statement No. 68 and No. 71 in 2015.
- 10 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
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 staffing.
Salary Increase (general wage adjustments and merit) – compensation adjustments to ensure the Village is able to
attract and retain high level employees.
Inflation – while overall inflation appears to be reasonably modest, the Village is a major consumer of certain
commodities such as supplies, fuels, and parts. Some functions may experience unusual commodity-specific
increases (e.g. fuel, road salt)
Current Year Impacts
Government Activities:
Governmental activities decreased the Village’s net position by $46.5 million to $17.9 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, 2015 were $41.8 million an
increase of $1.8 million or 4.5 percent. Property taxes continue to be the Village’s largest source of revenue (35.2
percent) at $14.7 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 and intergovernmental revenue including sales tax, state income tax, utility tax,
prepared food and beverage tax, hotel tax, and real estate transfer tax total $19.8 million or 47.6 percent of total
governmental activities revenue.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis(Unaudited)
December 31, 2015
Property taxes increased by $0.48 million. The increase in the corporate agency tax levy collected in 2015 was 4.0
percent. The corporate levy for 2015 is funding Police and Fire Protection. The Police Protection levy increased
$2.7 million (465.2 percent) and the Fire Protection Levy increased $1.2 million (28.9 percent). The total tax levy
increased 3.2 percent in total with decreases in the IMRF and Social Security levies of 2.3 percent. The pensions
levy increased 8.1 percent.
Sales tax increased by $0.82 million compared to the previous year. The growth in sales tax was 9.6 percent. Utility
taxes are down $.18 million, or 6.2 percent. The region experienced a moderate winter, leading to less natural gas
consumption than average. Income taxes have begun to rebound increasing $1.3 million from FY 2014, a 31.7
percent jump. Property transfer taxes continue to trend upward with an increase of $0.1 million. Income tax, sales
tax, and property transfer tax are key indicators for the Village of Buffalo Grove’s local economy and are improving
year over year.
Expenses:
The cost of all governmental activities this year was $45.0 million resulting in an increase of 5.6 percent from the
previous year ($42.6 million). The largest reduction was made in the Public Works reducing expenditures $2.0
million in 2015. Public Safety expenditures grew by $4.3 million (18.8 percent) for a total of $27.2 million dollars.
8% 3%
35%
22%
13%
4% 6%
2%
7%
Village of Buffalo Grove 2015 Revenue by Source
Governmental Activities
Charges for Service
Grants and Contributions
Property Tax
Sales and Use Tax
Income Tax
Telecommunications Tax
Utility Tax
Property Transfer Tax
13.1%
60.4%
25.8%
0.7%
Village of Buffalo Grove 2015 Expenditure by Function
Gvernmental Activities
General Government
Public Safety
Public Works
Interest
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
The Statement of Activities on pages 21-22 shows that $3.4 million in revenue was generated to finance for the
services rendered by those who use them. Another $1.2 million in revenue that finances, by operating and capital
grants and contributions, capital expenditures incurred, are essentially subsidies for capital improvement that is
needed or would be required over time.
Business-Type Activities:
Business-type activities net position decreased by $0.4 million. Significant changes are noted below.
Revenue:
Water sales increased $.5 million from the previous year. The average amount of water consumed in 2014 was
about 6,062 gallons per month per residential household. The increase in revenue was driven by a 4 percent water
rate increase. Average water consumption continues to be at historic lows due to maturing landscapes, more efficient
appliances, vacant properties, and resource conservation. The two golf courses generated $2.4 million in 2015,
which is consistent with the 2014 revenue earnings. The following graph shows a comparison of revenues and
expenses for each business type activity (less depreciation and operating transfers).
Expenses:
Expenses from all business-type activities increased by $0.5 million or 4.2 percent. The Water Fund expenses
increased by $0.1 million due to capital maintenance. Golf expenses increased by $0.5 million due to internal service
fund and capital reserve contribution increases.
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.
0
2
4
6
8
10
Water Fund Refuse Fund Arboretum Golf Buffalo Grove
Golf
Village of Buffalo Grove 2015
Business-Type Activities
Revenues and Expenses (in millions)
Revenue
Expenditure
- 13 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
The Village’s governmental funds for the year ended December 31, 2015 reflect a combined fund balance of $21.6
million on its balance sheet (pages 23-24). This represents a $0.6 million dollar increase over the balance posted
last year. The Village grew revenues to match inflation and insurance cost, which continue to be the driving force
behind the increase in expenditures on an annual basis. Of the total fund balance of $21.6 million, $11.3 million is
unassigned indicating availability for future obligations.
The 2015 unassigned fund balance increased by $0.4 million. The largest contributing factor is due to a decrease in
total liabilities for the general fund of over $2.2 million (55 percent). Nonspendable fund balance ($.55 million)
represents amounts set aside for inventory and deposits. Restricted fund balance ($2.2 million) is allocated to capital
projects and employee pension benefits. Committed fund balance ($7.5 million) is to be use for future capital
replacement.
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, 2015, the unassigned fund balance represents 38.4 percent of the FY 2016 operating budget
(less transfers). The Fund Balance of the General Fund increased by $1.9 million from December 31, 2015. A
majority of the growth was generated through budget management.
The General Fund’s revenues increased by $1.6 million in 2015. Sales and income tax both rebounded during the
fiscal year, with a positive outlook for FY 2016. The housing market continued its recover in 2015 as revenue
continues the uptick for the third consecutive year. Property taxes increased $1.5 million, while Miscellaneous
Income regressed $.3 million. Other Taxes grew $.15 million and charges for service went down 3.0 percent.
Interest Income dropped 76.6 percent in 2015 due to the uncertainty with the state of Illinois and its budget situation.
It was in the Villages best interest to take a more liquid position not knowing if disbursements would be held or
distributed throughout 2015. Fines and Fees and Licensing and Permits both increased in 2015 from the previous
year actuals. The overall growth in the General Fund of 4.3 percent is a positive indicator that the Village has been
able to generate adequate revenues. The under performing revenues also give the Village an opportunity to re-
evaluate those sources if there is a trend emerging or if it was related to a short term aberration.
0
2
4
6
8
10
12
14
16
Village of Buffalo Grove 2015 General Fund Revenue (in millions)
2015
2014
- 14 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
General fund expenditures decreased by $.4 million or 1.11 percent. The surplus of revenues over expenditures was
$3.5 million. Adding in the Other Financing Sources (Uses), the net change to fund balance resulted in an increase of
$1.9 million. Public Safety Expenditures increased $2.5 million, 11 percent, in FY 2015. Public Works and General
Government were able to reduce their expenditures $2.5 million and $0.4 million respectively.
Special Revenue Funds have a combined fund balance of $1.8 million as of December 31, 2015 up $0.1 million from
December 31, 2014. In 2014 the Village continued its initiative to improve local roadways by resurfacing streets,
repairing bridges, and maintaining street, curb and gutter as needed. These projects were funded through Motor Fuel
Tax (MFT) funds, the Capital Projects Street Maintenance fund, and grant revenues in 2015. The Village historically
contributes .20 percent of home rule sales tax revenue to the MFT Fund. Revenues received from the state share of
the motor fuel tax were $1.01 million. The cost of the 2015 street maintenance program was $1.9 million. The scope
of each year’s identified maintenance, as determined through pavement analysis studies, has surpassed the
relatively inelastic source of funding (more specifically the Motor Fuel Tax allotments). Given both the rise in the cost
of maintenance and the declining revenue, the amount of street surface area repaired each year will decline. The
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. The Street
Maintenance Fund expended $0.08 million and the Village had access to $1.01 million in grant funds. Some street
projects tied to Grant funding are not complete as of December 31, 2015, the remainder will be expended in FY
2016. The Village continues to make streets a priority spending over the annual allotment for MFT by transferring
general fund revenues to funds that build and improve roadway infrastructure.
The Debt Service Fund has a fund balance of $0 at the end of FY 2015 an increase of over $25,486 from the
previous year. The Village Debt totals $10.0 million and are all general obligation bonds, $.51 million in principal was
retired in the current year. The interest paid associated with the debt retired was $296,747. Debt per capita is
$241.91 as of December 31, 2015. The Village has the fourth lowest total outstanding debt amongst all the taxing
bodies represented on the 2015 Lake and/or Cook County property tax bill.
0
5
10
15
20
25
30
General Governemnt Public Safety Public Works
Village of Buffalo Grove 2015 General Fund Expenditures
(in millions)
2015
2014
- 15 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
The Village’s Capital Improvement plan continued in 2015. The Village expended over $2.7 million to the Facilities
Development fund infrastructure in FY 2015. The Water and Sewer funds added $1.2 million in Capital Assets and
an additional $4.0 million in process. Vehicles and Equipment decreased $1.1 million over FY 2015 due to disposals
and asset retirements.
Proprietary Funds
The Village of Buffalo Grove’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail.
The Village reports the both the Water and Sewer Fund and the Arboretum Golf Course as major proprietary funds.
The Water and Sewer Fund accounts for all 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 operating income before contributions and transfers of $0.95 million for
FY 2015, which is 17.4 percent of revenue generated entity wide. A rate increase of 4 percent was applied to all
usage after January 1, 2015. Sewer operations accounted for 44.2 percent, or $3.8 million of the total Water and
Sewer operational expenditures. Water operations accounted for less than half of that at $1.9 million (22 percent).
Purchased water expense was $1.7 million, and sanitary sewer fees collected on behalf of Lake County Public Works
was $3 million for FY 2015. These two pass through expenditures account for 54.7 percent of the total operating
expense of the fund. Purchased water expense increased over $3,000 from the prior year.
Non-operating revenue (expense) decreased $8,708 due to a reduction in the amount of assets invested in the
market.
The unrestricted net position of the Water and Sewer Fund at the end of the current fiscal year was $6.93 million. Of
that amount $6.90 million is the Village’s equity interest in the Northwest Water Commission and $0.4 million is
available to cash finance any major infrastructure improvements or enhancements to the water system.
The Village also reported the Arboretum Golf Course Fund as a major proprietary fund. This fund accounts for all
operations of the Arboretum Golf Course. The course reported a year end unrestricted net position deficit balance of
$70,545. Total revenues were $50,000 more than the previous year. The Village of Buffalo Grove owns and operates
two municipal golf courses. Golf rounds are returning to pre-recession levels. A total of 68,602 paid rounds were
played between the two courses.
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.
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VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
General Fund Budgetary Highlights
For the Fiscal Year Ended December 31, 2015
(in thousands)
Budget
Actual
Revenues and Transfers:
Taxes
33,956
35,085
Fines and Fees
2,480
3,079
Licenses and permits
292
350
Other Revenues
1,458
1,431
Transfers in
853
1,120
Total Revenues and Transfers
39,039
41,065
Expenditures and Transfers
Expenditures
38,001
36,460
Transfers Out
1,026
2,674
Total expenditures and Transfers 39,027
39,134
Change in fund balance
12
1,931
Revenue (taxes) performed better than expected due to strong sales and income tax revenue. Actual expenditures
exceeded budgeted expenditures due to unexpected, or scope modifications, of capital improvements.
Capital Assets
At the end of December 31, 2015, the Village had a combined total of capital assets of $94.6 million invested in a
broad range of capital assets including, buildings, streets, storm sewers, and equipment. This amount represents a
net increase (including additions and deductions) of $3.08 million.
Village of Buffalo Grove Capital Assets at Year End
Net of Depreciation
As of December 31, 2015 (in millions)
Governmental Business-Type
Activities Activities Total
2015 2014 2015 2014 2015 2014
Land 35.96 35.96 6.2 6.2 42.16 42.16
Construction in progress .76 .47 4.12 - 4.88 .47
Land Improvements 2.17 2.90 . . 2.17 2.90
Buildings 2.70 2.78 2.12 2.66 4.82 5.44
Equipment and Vehicles 3.54 3.55 . . 3.54 3.55
Streets and storm sewers 9.52 9.59 . . 9.52 9.59
Water and Sewer Infrastructure . . 27.51 27.41 27.51 27.41
Total 54.65 55.25 39.95 36.27 94.60 91.52
- 17 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
The Governmental Activities net capital assets decreased from last year by $0.6 million (1.09 percent). For the
Business-type activities, the net capital assets increased by $3.68 million or (10.15 percent).
The most significant capital activity was the start of the Water Meter Replacement Program in the Water Fund. The
Village is replacing all water meters throughout the Village. The change will also allow the Village to replace the
touch read system, with communication device that will allow each meter to be read from one location. This
decreases expenses operating expenses while increasing efficiency.
Detailed information on the Village’s capital assets is included in Note 3 section C on pages 61-62 .
At year end, the Village had total bonded debt outstanding of $10.0 million as shown in the next table:
Village of Buffalo Grove General Obligation Bonds
As of December 31, 2015 and 2014
(in millions)
Governmental Business-Type
Activities Activities Total
2015 2014 2015 2014 2015 2014
General obligation bonds $10.04 $10.55 $ - $ - $10.04 $10.55
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 $241.91 and represents .67 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 3 section F on pages 65-68.
Economic Factors and Next Year’s Budgets and Rates
The Village entered 2016 with a balanced operating budget. The budget for the fiscal year beginning January 1,
2016, is $74,908,609 a 4.9 percent decrease from the previous year. The operating budget totals $41,670,875
resulting in a 3.2 percent increase over the previous year. Total capital spending during the year is estimated to be
$10.8 million. Continued emphasis will remain on developing innovative ways to deliver services and reduce costs
while actively working to improve sales tax collections through economic development.
- 18 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2015
Property taxes remain the Village’s most stable revenue although the total assessed value of all taxable property is
expected to increase about .9 percent for the 2015 tax levy (extended and collected in 2016). A tax levy was adopted
for the 2016 budget that was 3.2 percent over the last year’s request. Half of the growth in the levy is due to match
inflation. Other tax revenues, including municipal and home-rule sales tax are expected to increase due also to
inflation. Much of the sales taxes are generate through restaurants, grocery stores, and building material sales.
Income taxes are expected to increase by 3 percent.
A twenty year proforma was completed on the Water Fund in FY 2015 and subsequently a water and sewer rate
recommendation was made, and adopted, that will increase water rates by 4 percent in 2015.
A Storm Water Management User Fee was introduced in the FY 2016 budget. This new user fees will offset the costs
related to maintaining, repairing and developing an infrastructure reserve for future system needs. The new revenue
will result in an additional $1.2 million to the General Fund.
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 2016.
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.
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
As of December 31, 2015
Governmental
Activities
Business-type
Activities Totals
ASSETS
Cash and equivalents $19,433,252 $1,387,322 $20,820,574
Investments 1,845,049 500,280 2,345,329
Receivables
Property taxes 15,192,849 -15,192,849
Accounts - water and sewer -1,522,482 1,522,482
Municipal sales tax 2,787,581 -2,787,581
Illinois income tax 1,181,466 -1,181,466
Motor fuel tax 93,652 -93,652
Telecommunications tax 437,785 -437,785
Food and beverage tax 76,700 -76,700
Utility tax 228,040 -228,040
Interest 7,782 312 8,094
Other 414,460 246,015 660,475
Inventories 79,667 33,318 112,985
Due from fiduciary funds 84,936 -84,936
Other 435,675 -435,675
Deposits 471,575 173,426 645,001
Investment in joint venture -6,904,375 6,904,375
Internal balances (17,082)17,082 -
Capital Assets
Land 35,963,844 6,198,514 42,162,358
Construction in progress 761,660 4,118,394 4,880,054
Buildings 23,210,214 10,284,359 33,494,573
Land improvements 3,242,060 1,966,488 5,208,548
Equipment and vehicles 11,884,949 94,510 11,979,459
Streets and storm sewers 57,385,410 -57,385,410
Water and sewer system infrastructure -62,106,468 62,106,468
Less: Accumulated depreciation (77,798,717)(44,818,704)(122,617,421)
Total Assets 97,402,807 50,734,641 148,137,448
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 64,497 -64,497
Deferred outflows of resources related to pensions 12,669,741 494,850 13,164,591
Total Deferred Outflows of Resources 12,734,238 494,850 13,229,088
LIABILITIES
Accounts payable 1,938,021 2,187,587 4,125,608
Accrued wages 293,944 18,822 312,766
State withholding taxes payable 17,386 -17,386
Development deposits 309,572 44,137 353,709
Due to fiduciary funds 36,166 -36,166
Short term notes payable 3,400,000 -3,400,000
Other -9,452 9,452
Noncurrent Liabilities
Due within one year 614,910 101,583 716,493
Due in more than one year 67,854,079 2,574,542 70,428,621
Total Liabilities 74,464,078 4,936,123 79,400,201
See accompanying notes to financial statements.
Page 19
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
As of December 31, 2015
Governmental
Activities
Business-type
Activities Totals
DEFERRED INFLOWS OF RESOURCES
Property taxes levied for a future period $15,192,849 $-$15,192,849
Deferred inflows of resources related to pensions 2,533,984 150,366 2,684,350
Total Deferred Inflows of Resources 17,726,833 150,366 17,877,199
NET POSITION
Net investment in capital assets 50,609,420 38,372,943 88,982,363
Restricted for
Road construction 1,765,559 -1,765,559
Capital projects 147,158 -147,158
Parking lot operations 61,398 -61,398
Unrestricted (34,637,401)7,770,059 (26,867,342)
TOTAL NET POSITION $17,946,134 $46,143,002 $64,089,136
See accompanying notes to financial statements.
Page 20
VILLAGE OF BUFFALO GROVE
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Governmental Activities
General government $5,885,811 $1,624,134 $-
Public safety 27,256,737 1,745,580 214,559
Public works 10,901,771 61,194 1,014,469
Buildings and grounds 649,835 --
Interest and fiscal charges 285,863 --
Total Governmental Activities 44,980,017 3,430,908 1,229,028
Business-type Activities
Water and Sewerage 8,561,248 9,495,691 -
Refuse Service 702,106 1,039,876 -
Arboretum Golf 1,920,654 1,238,090 -
Buffalo Grove Golf 1,368,228 1,097,838 -
Total Business-type Activities 12,552,236 12,871,495 -
Total $57,532,253 $16,302,403 $1,229,028
General Revenues
Taxes
Property
Home rule sales
Telecommunications taxes
Utility
Property transfer
Other
Intergovernmental
State sales tax
Income and use
Other
Investment income
Gain on sale of assets
Miscellaneous
Total General Revenues
Transfers
Change in net position
NET POSITION - Beginning of Year
(as restated)
NET POSITION - END OF YEAR
See accompanying notes to financial statements.
Page 21
Net (Expenses) Revenues and Changes in Net Position
Governmental
Activities
Business-type
Activities Totals
$(4,261,677)$-$(4,261,677)
(25,296,598)-(25,296,598)
(9,826,108)-(9,826,108)
(649,835)-(649,835)
(285,863)-(285,863)
(40,320,081)-(40,320,081)
-934,443 934,443
-337,770 337,770
-(682,564)(682,564)
-(270,390)(270,390)
-319,259 319,259
(40,320,081)319,259 (40,000,822)
14,742,622 -14,742,622
3,631,432 -3,631,432
1,644,309 -1,644,309
2,643,642 -2,643,642
904,311 -904,311
889,024 -889,024
5,643,345 -5,643,345
5,409,875 -5,409,875
203,530 -203,530
25,061 10,112 35,173
1,601 -1,601
1,458,118 5,737 1,463,855
37,196,870 15,849 37,212,719
749,027 (749,027)-
(2,374,184)(413,919)(2,788,103)
20,320,318 46,556,921 66,877,239
$17,946,134 $46,143,002 $64,089,136
See accompanying notes to financial statements.
Page 22
VILLAGE OF BUFFALO GROVE
BALANCE SHEET
GOVERNMENTAL FUNDS
As of December 31, 2015
General Fund
Facilities
Development
Nonmajor
Governmental
Funds Totals
ASSETS
Cash and equivalents $17,368,527 $-$1,925,411 $19,293,938
Investments 1,845,049 --1,845,049
Receivables
Property taxes 14,593,786 -599,063 15,192,849
Municipal sales tax 2,787,581 --2,787,581
Illinois income tax 1,181,466 --1,181,466
Motor fuel tax --93,652 93,652
Telecommunication tax 437,785 --437,785
Food and beverage tax 76,700 --76,700
Utility tax 228,040 --228,040
Interest 7,782 --7,782
Other 55,498 -358,962 414,460
Due from other funds 44,712 --44,712
Due from fiduciary funds 84,936 --84,936
Inventory 79,667 --79,667
Other assets 435,675 --435,675
Deposits 471,575 --471,575
TOTAL ASSETS $39,698,779 $-$2,977,088 $42,675,867
See accompanying notes to financial statements.
Page 23
General Fund
Facilities
Development
Nonmajor
Governmental
Funds Totals
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $1,103,196 $307,560 $403,910 $1,814,666
Accrued wages 277,985 --277,985
Development deposits 309,572 --309,572
Due to fiduciary funds 36,166 --36,166
Due to other funds 61,794 --61,794
Payroll deductions payable 17,386 --17,386
Short-term notes payable -3,400,000 -3,400,000
Total Liabilities 1,806,099 3,707,560 403,910 5,917,569
Deferred Inflows of Resources
Property taxes levied for a future
period 14,593,786 -599,063 15,192,849
Total Deferred Inflows of
Resources 14,593,786 -599,063 15,192,849
Fund Balances (Deficit)
Nonspendable for inventory 79,667 --79,667
Nonspendable for deposits 471,575 --471,575
Restricted for road construction --1,765,559 1,765,559
Restricted for capital project --147,158 147,158
Restricted for employee pension
benefits 223,622 --223,622
Restricted for parking lot operations --61,398 61,398
Committed for capital replacement 7,532,123 --7,532,123
Unassigned (deficit)14,991,907 (3,707,560)-11,284,347
Total Fund Balances (deficit)23,298,894 (3,707,560)1,974,115 21,565,449
TOTAL LIABILITIES,
DEFERRED INFLOWS OF
RESOURCES, AND FUND
BALANCES $39,698,779 $-$2,977,088 $42,675,867
See accompanying notes to financial statements.
Page 24
VILLAGE OF BUFFALO GROVE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
As of December 31, 2015
Total Fund Balances - Governmental Funds $21,565,449
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental funds are not financial resources and
therefore are not reported in the funds.
Land 35,963,844
Construction in progress 761,660
Buildings 23,210,214
Land Improvements 3,242,060
Equipment and vehicles 11,884,949
Streets and storm sewers 57,385,410
Less: Accumulated depreciation (77,798,717)
A deferred charge on refunding represents a consumption of net position that
applies to a future period and, therefore, is not reported in the funds.64,497
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the Governmental Funds Balance Sheet.12,669,741
Less amount reported in internal service funds below.(333,879)
Deferred inflows of resources related to pensions do not related to current financial
resources and are not reported in the Governmental Funds Balance Sheet.(2,533,984)
Less amount reported in internal service funds below.101,453
Some liabilities, including long-term debt, are not due and payable in the current
period and therefore, are not reported in the funds.
Bonds payable (10,040,000)
Compensated absences (1,352,691)
Net other post-employment obligation (758,973)
Unamortized debt premium (162,453)
Net pension liability (56,154,872)
Less amount reported in internal service funds below.664,329
The net position of the internal service funds are included in the governmental
activities in the Statement of Net Position (431,903)
NET POSITION OF GOVERNMENTAL ACTIVITIES $17,946,134
See accompanying notes to financial statements.
Page 25
VILLAGE OF BUFFALO GROVE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
General
Facilities
Development
Nonmajor
Governmental
Funds Totals
REVENUES
Property $14,114,565 $-$628,057 $14,742,622
Other taxes 9,712,718 --9,712,718
Charges for services 1,330,097 -672 1,330,769
Fines and fees 1,748,855 -182,657 1,931,512
Licenses and permits 350,042 --350,042
Intergovernmental 11,256,750 -1,014,469 12,271,219
Interest 25,061 --25,061
Miscellaneous income 1,404,841 --1,404,841
Total Revenues 39,942,929 -1,825,855 41,768,784
EXPENDITURES
Current
General government 4,911,919 -172,853 5,084,772
Public safety 25,237,115 --25,237,115
Public works 6,310,830 -1,781,905 8,092,735
Capital Outlay -2,746,734 81,460 2,828,194
Debt Service
Principal --510,000 510,000
Interest --296,747 296,747
Total Expenditures 36,459,864 2,746,734 2,842,965 42,049,563
Excess (deficiency) of revenues over
expenditures 3,483,065 (2,746,734)(1,017,110)(280,779)
OTHER FINANCING SOURCES (USES)
Sales of capital assets 1,601 --1,601
Transfers in 1,120,393 1,337,984 1,063,383 3,521,760
Transfers out (2,674,312)-(12,000)(2,686,312)
Total Other Financing Sources (Uses)(1,552,318)1,337,984 1,051,383 837,049
Net Change in Fund Balances 1,930,747 (1,408,750)34,273 556,270
FUND BALANCES (DEFICIT) - Beginning of
Year 21,368,147 (2,298,810)1,939,842 21,009,179
FUND BALANCES (DEFICIT) - END
OF YEAR $23,298,894 $(3,707,560)$1,974,115 $21,565,449
See accompanying notes to financial statements.
Page 26
VILLAGE OF BUFFALO GROVE
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Net change in fund balances - total governmental funds $556,270
Amounts reported for governmental activities in the statement of activities are different
because:
Governmental funds report capital outlays as expenditures. However, in the statement of
net position the cost of these assets is capitalized and they are depreciated over their
estimated useful lives and reported as depreciation expense in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements but is
capitalized in the government-wide financial statements 2,828,194
Some items reported as capital outlay were not capitalized (1,088,574)
Depreciation is reported in the government-wide financial statements (2,184,305)
Net book value of assets retired (168,877)
Debt issued provides current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net position. Repayment of debt principal
is an expenditure in the governmental funds, but the repayment reduces long-term
liabilities in the statement of net position.
Principal repaid 510,000
Governmental funds report debt premiums and discounts as other financing sources (uses)
or expenditures. However, in the statement of net position, these are reported as
additions to or deductions from long-term debt. These are allocated over the period the
debt is outstanding in the statement of activities and are reported as interest expense
Debt premium 18,050
Some expenses in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences (106,302)
Net other post employment benefit obligation (249,486)
Net pension liability (11,092,321)
Deferred outflows of resources due to pensions 11,474,767
Deferred inflows of resources due to pensions (2,432,531)
Amortization of deferred charge on refunding (7,166)
Internal service funds are used by management to charge information technology, central
garage, and building maintenance costs to individual funds. The change in net position of
the internal service funds is reported with governmental activities.(431,903)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $(2,374,184)
See accompanying notes to financial statements.
Page 27
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of December 31, 2015
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
ASSETS
Current Assets
Cash and equivalents $437,591 $11,981 $937,750 $1,387,322
Investments 500,280 --500,280
Receivables
Accounts - water and sewer 1,522,482 --1,522,482
Interest 312 --312
Other 35,429 14,922 195,664 246,015
Due from other funds -41,532 20,262 61,794
Inventory -13,863 19,455 33,318
Total Current Assets 2,496,094 82,298 1,173,131 3,751,523
Noncurrent Assets
Capital Assets
Land -5,219,738 978,776 6,198,514
Land improvements -1,516,051 450,437 1,966,488
Construction in progress 4,118,394 --4,118,394
Buildings and improvements -8,421,522 1,862,837 10,284,359
Machinery, equipment and
furnishings --94,510 94,510
Water and sewer infrastructure 62,106,468 --62,106,468
Less: Accumulated depreciation (34,612,913)(7,948,194)(2,257,597)(44,818,704)
Other Assets
Deposits 173,426 --173,426
Investment in joint venture 6,904,375 --6,904,375
Total Noncurrent Assets 38,689,750 7,209,117 1,128,963 47,027,830
Total Assets 41,185,844 7,291,415 2,302,094 50,779,353
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions 330,577 56,811 107,462 494,850
Total Deferred Outflows of Resources 330,577 56,811 107,462 494,850
See accompanying notes to financial statements.
Page 28
Governmental
Activities -
Internal
Service Funds
$139,314
-
-
-
-
-
-
139,314
-
-
-
-
-
-
-
-
-
-
139,314
333,879
333,879
See accompanying notes to financial statements.
Page 29
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of December 31, 2015
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
LIABILITIES
Current Liabilities
Accounts payable 2,061,387 77,549 48,651 2,187,587
Accrued wages 15,123 686 3,013 18,822
Other -(1,880)11,332 9,452
Development deposits 44,137 --44,137
Due to other funds 37,712 3,000 4,000 44,712
IEPA loan payable 17,426 --17,426
Compensated absences 3,611 -3,945 7,556
Installment note payable - current 76,552 --76,552
Total Current Liabilities 2,255,948 79,355 70,941 2,406,244
Noncurrent Liabilities
Long-Term Debt
Compensated absences 51,462 -55,404 106,866
IEPA loan payable 366,061 --366,061
Net pension liability 657,759 113,037 213,821 984,617
Installment note payable - long term 1,117,047 --1,117,047
Total Noncurrent Liabilities 2,192,329 113,037 269,225 2,574,591
Total Liabilities 4,448,277 192,392 340,166 4,980,835
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 100,450 17,262 32,654 150,366
Total Deferred Inflows of Resources 100,450 17,262 32,654 150,366
NET POSITION
Net investment in capital assets 30,034,863 7,209,117 1,128,963 38,372,943
Unrestricted (deficit)6,932,831 (70,545)907,773 7,770,059
TOTAL NET POSITION $36,967,694 $7,138,572 $2,036,736 $46,143,002
See accompanying notes to financial statements.
Page 30
Governmental
Activities -
Internal
Service Funds
123,355
15,959
-
-
-
-
-
-
139,314
-
-
664,329
-
664,329
803,643
101,453
101,453
-
(431,903)
$(431,903)
See accompanying notes to financial statements.
Page 31
VILLAGE OF BUFFALO GROVE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
OPERATING REVENUES
Water and sewer charges $9,401,310 $-$-$9,401,310
Daily greens fee and memberships -819,935 723,398 1,543,333
Merchandise sales -58,073 70,320 128,393
Connection and recapture fees 94,381 --94,381
Cart, club, and other rentals -252,957 222,306 475,263
Driving range fees --62,116 62,116
SW ANCC user fees --1,039,876 1,039,876
Miscellaneous 5,737 107,125 19,698 132,560
Internal service contributions ----
Total Operating Revenues 9,501,428 1,238,090 2,137,714 12,877,232
OPERATING EXPENSES
Water operations 1,857,580 --1,857,580
Sewer operations 3,824,799 --3,824,799
Water purchases 1,671,152 --1,671,152
Golf operations -1,384,020 1,286,038 2,670,058
Cost of sales - pro shop -47,978 49,406 97,384
Refuse operations --702,106 702,106
Loss from joint venture 77,861 --77,861
Depreciation 1,129,856 488,656 32,784 1,651,296
Internal service fund expenses ----
Total Operating Expenses 8,561,248 1,920,654 2,070,334 12,552,236
Operating Income (Loss)940,180 (682,564)67,380 324,996
NONOPERATING REVENUES
Interest 10,112 --10,112
Total Nonoperating Revenues 10,112 --10,112
Income (Loss) Before Transfers 950,292 (682,564)67,380 335,108
TRANSFERS
Transfers in -234,840 218,105 452,945
Transfers out (1,038,044)(34,828)(129,100)(1,201,972)
Total Transfers (1,038,044)200,012 89,005 (749,027)
Change in Net Position (87,752)(482,552)156,385 (413,919)
NET POSITION - Beginning of Year (as
restated)37,055,446 7,621,124 1,880,351 46,556,921
NET POSITION - END OF YEAR $36,967,694 $7,138,572 $2,036,736 $46,143,002
See accompanying notes to financial statements.
Page 32
Governmental
Activities -
Internal
Service Funds
$-
-
-
-
-
-
-
-
3,879,087
3,879,087
-
-
-
-
-
-
-
-
4,224,569
4,224,569
(345,482)
-
-
(345,482)
-
(86,421)
(86,421)
(431,903)
-
$(431,903)
See accompanying notes to financial statements.
Page 33
VILLAGE OF BUFFALO GROVE
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
CASH FLOWS FROM OPERATING
AC TIVITIES
Received from customers $9,366,309 $1,247,512 $2,081,964 $12,695,785
Received from interfund charges ----
Paid to suppliers for goods and services (6,808,744)(1,076,134)(1,532,645)(9,417,523)
Paid to employees for services (746,826)(351,028)(428,768)(1,526,622)
Net Cash Flows From Operating
Activities 1,810,739 (179,650)120,551 1,751,640
CASH FLOWS FROM INVESTING
AC TIVITIES
Investments sold and matured (500,000)--(500,000)
Interest income 9,832 --9,832
Gain (Loss) on investment 1,855 --1,855
Net Cash Flows From Investing
Activities (488,313)--(488,313)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in -193,308 197,843 391,151
Transfers (out)(1,009,332)(34,828)(129,100)(1,173,260)
Proceeds from notes 1,193,599 --1,193,599
Net Cash Flows From Noncapital
Financing Activities 184,267 158,480 68,743 411,490
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Purchase of capital assets (4,180,134)--(4,180,134)
IEPA loan paid (17,033)--(17,033)
Net Cash Flows From Capital and
Related Financing Activities (4,197,167)--(4,197,167)
Net Change in Cash and Cash
Equivalents (2,690,474)(21,170)189,294 (2,522,350)
CASH AND CASH EQUIVALENTS - Beginning
of Year 3,128,065 33,151 748,456 3,909,672
CASH AND CASH EQUIVALENTS - END
OF YEAR $437,591 $11,981 $937,750 $1,387,322
See accompanying notes to financial statements.
Page 34
Governmental
Activities -
Internal
Service Funds
$-
3,879,087
(2,771,425)
(881,927)
225,735
-
-
-
-
-
(86,421)
-
(86,421)
-
-
-
139,314
-
$139,314
See accompanying notes to financial statements.
Page 35
VILLAGE OF BUFFALO GROVE
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Operating income (loss)$940,180 $(682,564)$67,380 $324,996
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 1,129,856 488,656 32,784 1,651,296
Loss on joint venture 77,861 --77,861
Changes in assets and liabilities
Accounts receivable (135,503)9,422 (55,750)(181,831)
Accounts payable (334,364)60,956 21,589 (251,819)
Accrued salaries (39,223)(14,877)(17,466)(71,566)
Deposits 384 (1,880)-(1,496)
Inventory -4,163 1,480 5,643
Compensated absences 30,937 (96,859)6,100 (59,822)
Deferred outflows - pensions (208,930)(6,736)(49,193)(264,859)
Deferred inflows - pensions 100,450 17,262 32,654 150,366
Net pension liability 249,091 42,807 80,973 372,871
NET CASH FLOWS FROM
OPERATING ACTIVITIES $1,810,739 $(179,650)$120,551 $1,751,640
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
See accompanying notes to financial statements.
Page 36
Governmental
Activities -
Internal
Service Funds
$(345,482)
-
-
-
123,355
15,959
-
-
-
(333,879)
101,453
664,329
$225,735
See accompanying notes to financial statements.
Page 37
VILLAGE OF BUFFALO GROVE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
As of December 31, 2015
Pension Trusts Agency Fund
ASSETS
Cash $4,584,562 $525,757
Investments
U.S. treasuries 11,235,508 -
U.S. agencies 19,168,606 -
Mutual funds - other than bond funds 33,259,723 -
Equity securities 26,445,824 -
Municipal bonds 3,203,140 -
Corporate bonds 8,783,622 -
Receivables
Interest 182,779 -
Prepaid items 5,378 -
Due from primary government 36,166 -
Total Assets 106,905,308 525,757
LIABILITIES
Accounts payable 87,256 -
Due to primary government 84,936 -
Due to other governments -525,757
Total Liabilities 172,192 525,757
NET POSITION
Held in trust for pension benefits $106,733,116 $-
See accompanying notes to financial statements.
Page 38
VILLAGE OF BUFFALO GROVE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended December 31, 2015
Pension Trusts
AD DITIONS
Contributions
Employer $4,486,453
Plan members 1,193,791
Total Contributions 5,680,244
Investment income
Interest 1,080,293
Net appreciation in fair value of investments 68,185
Total Investment Income 1,148,478
Less Investment expense 307,218
Net Investment Income 841,260
Total Additions 6,521,504
DEDUCTIONS
Administration 88,233
Pension benefits and refunds 5,111,325
Total Deductions 5,199,558
Change in Net Position 1,321,946
NET POSITION - Beginning of Year 105,411,170
NET POSITION - END OF YEAR $106,733,116
See accompanying notes to financial statements.
Page 39
VILLAGE OF BUFFALO GROVE
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE Page
I Summary of Significant Accounting Policies 41
A.Reporting Entity 41
B.Government-W ide and Fund Financial Statements 42
C.Measurement Focus, Basis of Accounting, and Financial Statement
Presentation 45
D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources, and Net Position or Equity 46
1.Deposits and Investments 46
2.Receivables 50
3.Inventories 51
4.Capital Assets 51
5.Deferred Outflows of Resources 52
6.Compensated Absences 52
7.Long-Term Obligations 52
8.Deferred Inflows of Resources 53
9. Equity Classifications 53
II Stewardship, Compliance, and Accountability 55
A.Excess Expenditures Over Appropriations 55
B.Deficit Balances 55
III Detailed Notes on All Funds 56
A.Deposits and Investments 56
B.Receivables 60
C.Capital Assets 61
D.Interfund Receivables/Payables and Transfers 63
E.Short-Term Debt Activity 65
F.Long-Term Obligations 65
G.Lease Disclosures 68
H.Restatement of Net Position 69
IV Other Information 69
A.Employees' Retirement System 69
B.Risk Management 83
C.Commitments and Contingencies 84
D.Joint Ventures 85
E.Other Postemployment Benefits 87
F.Subsequent Events 90
G.Effect of New Accounting Standards on Current-Period Financial Statements 90
H.Pledged Revenue 91
See accompanying notes to financial statements.
Page 40
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Buffalo Grove, Illinois (the Village) was incorporated in 1958. The Village is a home-rule
municipality, under the 1970 Illinois Constitution, located in both Lake County, Illinois and Cook County,
Illinois. The Village operates under a Council-Manager form of government and provides the following
services as authorized by its charter: public safety (police and fire protection), sanitation (water and
sewer), building and zoning, engineering, recreation, civil defense and overall administration.
The accounting policies of the Village of Buffalo Grove, Illinois conform to accounting principles generally
accepted in the United States of America as applicable to governmental units. The accepted standard-
setting body for establishing governmental accounting and financial reporting principles is the
Governmental Accounting Standards Board (GASB).
A.REPORTING ENTITY
This report includes all of the funds of the Village. The reporting entity for the Village consists of the
primary government and its component units. Component units are legally separate organizations for
which the primary government is financially accountable or other organizations for which the nature and
significance of their relationship with the primary government are such that their exclusion would cause
the reporting entity's financial statements to be misleading. The Village has not identified any
organizations that meet this criteria.
The Police Pension Employees Retirement System (PPERS) is established for the Village's police
employees. PPERS functions for the benefit of these employees and is governed by a five-member
pension board. Two members appointed by the Village’s President, one pension beneficiary elected by the
membership, and two police employees elected by the membership constitute the pension board. The
Village and the PPERS participants are obligated to fund all PPERS costs based upon actuarial
valuations. The State of Illinois is authorized to establish benefit levels and the Village is authorized to
approve the actuarial assumptions used in the determination of contribution levels. Although it possesses
many characteristics of a legally separate government, PPERS is reported as if it were part of the primary
government because its sole purpose is to finance and administer the pensions of the Village’s police
employees and because of the fiduciary nature of such activities. PPERS is reported as a pension trust
fund and the data for the pension is included in the government's fiduciary fund financial statements. No
separate annual financial report is issued for the PPERS.
The Firefighters’ Pension Employees Retirement System (FPERS) is established for the Village's
firefighters. FPERS functions for the benefit of these employees and is governed by a five-member
pension board. Two members appointed by the Village’s President, one pension beneficiary elected by the
membership; and two fire employees elected by the membership constitute the pension board. The Village
and the FPERS participants are obligated to fund all FPERS costs based upon actuarial valuations. The
State of Illinois is authorized to establish benefit levels and the Village is authorized to approve the
actuarial assumptions used in the determination of contribution levels. Although it possesses many of the
characteristics of a legally separate government, FPERS is reported as if it were part of the primary
government because its sole purpose is to finance and administer the pensions of the Village’s firefighters
because of the fiduciary nature of such activities. FPERS is reported as a pension trust fund and the data
for the pension is included in the government's fiduciary fund financial statements. No separate annual
financial report is issued for the FPERS.
Page 41
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
In June 2012, the GASB issued statement No. 68 - Accounting and Financial Reporting for Pensions - an
amendment of GASB Statement No. 27. This statement establishes standards for measuring and
recognizing assets, liabilities, deferred outflows of resources, deferred inflows of resources, and
expense/expenditures related to pensions. In November 2013, the GASB issued statement No. 71 -
Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of
GASB Statement No. 68. This statement addresses an issue regarding application of the transition
provisions of Statement No. 68. These standards were implemented January 1, 2015.
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds.The
statements distinguish between governmental and business-type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Business-type activities are financed in whole or in part by fees charged to external parties for goods or
services. Likewise, the primary government is reported separately from certain legally separate
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The Village does not allocate indirect expenses to functions in the statement
of activities. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. Taxes and other items not included among program revenues are reported as
general revenues. Internally dedicated resources are reported as general revenues rather than as
program revenues.
Fund Financial Statements
Financial statements of the Village are organized into funds, each of which is considered to be a separate
accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts,
which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net
position/fund balance, revenues, and expenditures/expenses.
Page 42
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
Funds are organized as major funds or nonmajor funds within the governmental and proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary categories. A
fund is considered major if it is the primary operating fund of the Village or meets the following criteria:
a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources,
revenues, or expenditures/expenses of that individual governmental or enterprise fund are at
least 10% of the corresponding total for all funds of that category or type, and
b. The same element of the individual governmental or enterprise fund that met the 10% test
is at least 5% of the corresponding total for all governmental and enterprise funds combined.
c. In addition, any other governmental or enterprise fund that the Village believes is
particularly important to financial statement users may be reported as a major fund.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
The Village reports the following major governmental funds:
General Fund - accounts for the Village's primary operating activities. It is used to account for
and report all financial resources except those accounted for and reported in another fund.
Facilities Development Fund - to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or
construction of capital facilities and other capital assets.
The Village reports the following major enterprise funds:
Water and Sewerage Fund - accounts for operations of the water and sewerage system.
Arboretum Golf Fund - accounts for operations 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.
Page 43
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
The Village reports the following nonmajor governmental and enterprise funds:
Special Revenue Funds - used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditures for specified purposes (other than debt
service or capital projects).
Motor Fuel Tax Fund
Metra Parking Lot Fund
Debt Service Fund - used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for the payment of general long-term debt principal,
interest, and related costs.
Debt Service Fund
Capital Projects Fund - used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or
construction of capital facilities and other capital assets.
Street Maintenance Fund
Enterprise Funds - used to account for and report any activity for which a fee is charged to
external uses for goods or services, and must be used for activities which meet certain debt or
cost recovery criteria.
Buffalo Grove Golf Fund
Refuse Service Fund
In addition, the Village reports the following fund types:
Internal Service Fund - used to account for and report the financing of goods or services
provided by one department or agency to other departments or agencies of the Village, or to
other governmental units, on a cost-reimbursement basis.
Information Technology Fund
Central Garage Fund
Building Maintenance Fund
Page 44
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
Pension Trust Funds - used to account for and report resources that are required to be held in
trust for the members and beneficiaries of defined benefit pension plans.
Police Pension Fund
Firefighters' Pension Fund
Agency Fund - used to account for and report assets held by the Village in a trustee capacity or
as an agent for individuals, private organizations, and/or other governmental units.
School and Park Donations Fund
C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Government-Wide Financial Statements
The government-wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from
exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes
are recognized as revenues in the year for which they are levied. Taxes receivable for the following year
are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue as
soon as all eligibility requirements imposed by the provider are met. Special assessments are recorded as
revenue when earned. Unbilled receivables are recorded as revenues when services are provided.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recorded when they are both
measurable and available. Available means collectible within the current period or soon enough thereafter
to be used 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 period. Expenditures are
recorded when the related fund liability is incurred, except for unmatured interest on long-term debt,
claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund
liability when expected to be paid with expendable available financial resources.
Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognized
as revenues in the succeeding year when services financed by the levy are being provided.
Page 45
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.)
Fund Financial Statements (cont.)
Intergovernmental aids and grants are recognized as revenues in the period the Village is entitled the
resources and the amounts are available. Amounts owed to the Village which are not available are
recorded as receivables and unavailable revenues. Amounts received before eligibility requirements
(excluding time requirements) are met are recorded as liabilities. Amounts received in advance of meeting
time requirements are recorded as deferred inflows.
Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services,
special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees,
recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable
and available under the criteria described above.
Proprietary and fiduciary fund financial statements (other than agency funds) are reported using the
economic resources measurement focus and the accrual basis of accounting, as described previously in
this note. Agency funds follow the accrual basis of accounting, and do not have a measurement focus.
The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
Water and Sewer fund are charges to customers for sales and services. Special assessments are
recorded as receivables and contribution revenue when levied. Operating expenses for proprietary funds
include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
All Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estimates.
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND NET POSITION OR EQUITY
1.Deposits and Investments
For purposes of the statement of cash flows, the Village considers all highly liquid investments with an
initial maturity of three months or less when acquired to be cash equivalents.
Page 46
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
1.Deposits and Investments (cont.)
Illinois Statutes authorize the Village to make deposits/investments in insured commercial banks, savings
and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares,
money market mutual funds with portfolios of securities issued or guaranteed by the United States or
agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper
rated within the three highest classifications by at least two standard rating services, and the Illinois Funds
Investment Pool.
Pension funds may also invest in certain non-U.S. obligations, Illinois municipal corporations tax
anticipation warrants, veteran’s loans, obligations of the State of Illinois and its political subdivisions, and
the Illinois insurance company general and separate accounts, mutual funds meeting certain
requirements, equity securities, and corporate bonds meeting certain requirements. Pension funds with
net assets in excess of $10,000,000 and an appointed investment advisor may invest an additional portion
of its assets in common and preferred stocks and mutual funds, that meet certain requirements. The
police pension fund’s investment policy allows investments in all of the above listed accounts, but does
exclude any repurchase agreements. The firefighters pension fund allows funds to be invested in any type
of security authorized by the Illinois Pension Code.
The police pension fund's investment policy, in accordance with Illinois Statutes, establishes the following
target allocation across asset classes:
Asset Class Target
Long-Term
Expected Real
Rate of Return
Cash 2%(0.25)%
Fixed income 33%4.14%
Large cap domestic equities 52%5.34%
Small cap domestic equities 5%6.55%
International equities 5%5.84%
Real estate 3%5.92%
Illinois Compiled Statues (ILCS) limit the police pension fund's investments in equities, mutual funds and
variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The
blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio.
Page 47
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
1.Deposits and Investments (cont.)
The long-term expected rate of return on the police pension fund's investments was determined using a
building block method. The best-estimate of future real rates of return (net of pension plan investment
expense and inflation) were developed for each major asset class. These ranges were combined to
produce long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation. Best estimates or arithmetic real rates
of return for each major asset class included in the police pension fund's target asset allocation are listed
in the table above.
The firefighters' pension fund's investment policy, in accordance with Illinois Statutes, establishes the
following target allocation across asset classes:
Asset Class Target
Long-Term
Expected Real
Rate of Return
U.S. treasury bills/notes/bonds 15%2.20%
U.S. government agency securities (non-MBS)17.5%2.20%
U.S. government agency securities - callable 10%2.20%
U.S. government agency securities (MBS)2.5%2.20%
Taxable municipal securities 5%2.20%
U.S. large company stocks 35%7.00%
U.S. small company stocks 10%9.10%
International stocks 5%7.20%
Illinois Compiled Statues (ILCS) limit the firefighters' pension fund's investments in equities, mutual funds
and variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. The
blended asset class is comprised of all other asset classes to allow for rebalancing the portfolio.
The long-term expected rate of return on the firefighters' pension fund's investments was determined
using an asset allocation study conducted by the firefighters' pension fund's investment management
consultant in 2015 in which best-estimate ranges of expected future real rates of return (net of pension
plan investment expense and inflation) were developed for each major asset class. These ranges were
combined to produce long-term expected rate of return by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. Best estimates or
arithmetic real rates of return for each major asset class included in the firefighters' pension fund's target
asset allocation are listed in the table above
The Village, Police and Firefighters' pensions have adopted an investment policy. That policy follows the
state statute for allowable investments.
Page 48
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
1.Deposits and Investments (cont.)
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.
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.
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.
Custodial Credit Risk - Deposits
The Village's investment policy requires securing deposit collateral from depository institutions when
deposits are in excess of FDIC limits. The amount of deposits not collateralized or insured by an agency
of the federal government shall not exceed 75% of the capital stock and surplus of a banking institution.
These values shall be reviewed on a quarterly basis comparing actual deposits not insured or
collateralized against the capital stock and surplus measure. Values shall be taken from published
regulatory agency reports required by either the Comptroller of the Currency or the Commissioner of
Banks and Trust Companies.
If deposits are maintained with a savings and loan association, the amount of deposits not collateralized or
insured shall not exceed 75% of the net worth of the institution as defined and reported to the regulatory
agencies. The Police and Firefighters’ Pension investment policies limit exposure to deposit custodial
credit risk by requiring deposits in excess of FDIC insurable limits to be collateralized.
Page 49
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
1.Deposits and Investments (cont.)
Custodial Credit Risk - Investments
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.
Direct investments guaranteed by the United States or an agency of the United States do not require
collateral.
Investments are stated at fair value, which is the amount at which an investment could be exchanged in a
current transaction between willing parties. Fair values are based on quoted market prices. No
investments are reported at amortized cost. Adjustments necessary to record investments at fair value are
recorded in the operating statement as increases or decreases in investment income. Investment income
on commingled investments of municipal accounting funds is allocated based on average balances. The
difference between the bank statement balance and carrying value is due to outstanding checks and/or
deposits in transit.
Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows
governments within the State to pool their funds for investment purposes. Illinois Funds is not registered
with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the
Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price,
the price for which the investments could be sold.
Illinois Metropolitan Investment Fund (IMET) is a not-for-profit investment trust formed pursuant to the
Illinois Municipal Code and managed by a Board of Trustees elected from the participating members.
IMET is not registered with the SEC as an investment company. Investments in IMET are valued at
IMET's share price, the price for which the investment could be sold.
See Note III. A. for further information.
2.Receivables
Property taxes for levy year 2015 attaches as an enforceable lien on January 1, 2015, on property values
assessed as of the same date. Taxes are levied by December following the lien date (by passage of a Tax
Levy Ordinance).
Tax bills for levy year 2014 are prepared by Cook County and issued on or about February 1, 2015 and
July 1, 2015, and are payable in two installments, on or about March 1, 2015 and August 1, 2015 or within
30 days of the tax bills being issued.
Tax bills for levy year 2014 are prepared by Lake County and issued on or about June 1, 2015 and August
1, 2015, and are payable in two installments, on or about July 1, 2015 and September 1, 2015 or within 30
days of the tax bills being issued.
Page 50
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
2.Receivables (cont.)
The counties collect such taxes and remits them periodically. The 2015 property tax levy is recognized as
a receivable and deferred inflow in fiscal 2015. As the taxes become available to finance current
expenditures, they are recognized as revenues. At December 31, 2015, the property taxes receivable and
deferred inflow consisted of the estimated amount collectible from the 2015 levy.
During the course of operations, transactions occur between individual funds that may result in amounts
owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-term
interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund
receivables and payables between funds within governmental activities are eliminated in the statement of
net position. Any residual balances outstanding between the governmental activities and business-type
activities are reported in the governmental-wide financial statements as internal balances.
In the governmental fund financial statements, advances to other funds are offset equally by a
nonspendable fund balance account which indicates that they do not constitute expendable available
financial resources and, therefore, are not available for appropriation or by a restricted fund balance
account, if the funds will ultimately be restricted when the advance is repaid.
3.Inventories
Governmental fund inventories, if material, are recorded at cost based on the FIFO method using the
consumption method of accounting. Inventories consist of golf pro shop merchandise and central garage
fuel reserves.
4.Capital Assets
Government-Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial cost of more than
$10,000 and an estimated useful life in excess of 1 year. All capital assets are valued at historical cost, or
estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at their
estimated fair value at the date of donation.
Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the
statement of activities, with accumulated depreciation and amortization reflected in the statement of net
position. Depreciation and amortization is provided over the assets' estimated useful lives using the
straight-line method. The range of estimated useful lives by type of asset is as follows:
Page 51
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
4.Capital Assets (cont.)
Government-Wide Statements (cont.)
Buildings 20 Years
Well and System
Improvements 5 - 50 Years
Furniture and Equipment 2 - 10 Years
Vehicles 2 - 12 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary
fund operations are accounted for the same way as in the government-wide statements.
5. Deferred Outflows of Resources
A deferred outflow of resources represents a consumption of net position/fund balance that applies to a
future period and will not be recognized as an outflow of resources (expense/expenditure) until that future
time.
6.Compensated Absences
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. Terminated employees 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 due after one year. 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. A liability
for these amounts is reported in governmental funds only if they have mature, for example, as a result of
employee resignations or retirements and are payable with expendable resources.
7.Long-Term Obligations
All long-term obligations to be repaid from governmental and business-type resources are reported as
liabilities in the government-wide statements. The long-term obligations consist primarily of bonds
payable.
Page 52
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
7.Long-Term Obligations
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing sources and
payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the
same as it is in the government-wide statements.
For the government-wide statements and proprietary fund statements, bond premiums and discounts are
amortized over the life of the issue using the effective interest method. The balance at year end is shown
as an increase or decrease in the liability section of the statement of net position.
8.Deferred Inflows of Resources
A deferred inflow of resources represents an acquisition of net position/fund balance that applies to a
future period and therefore will not be recognized as an inflow of resources (revenue) until that future time.
9. Equity Classifications
Government-Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets - Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances (excluding
unspent debt proceeds) of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position - Consists of net position with constraints placed on their use either
by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments or, 2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position - All other net positions that do not meet the definitions of
"restricted" or "net investment in capital assets."
When both restricted and unrestricted resources are available for use, it is the Village's policy to use
restricted resources first, then unrestricted resources as they are needed.
Page 53
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCS AND
NET POSITION OR EQUITY (cont.)
Fund Statements
Governmental fund balances are displayed as follows:
a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are
not in spendable form or because legal or contractual requirements require them to be
maintained intact.
b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments or
2) law through constitutional provisions or enabling legislation.
c. Committed - Includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority. Fund balance amounts are committed through a formal action (ordinance) of
the Village Board. This formal action must occur prior to the end of the reporting period, but the
amount of the commitment, which will be subject to the constraints, may be determined in the
subsequent period. Any changes to the constraints imposed require the same formal action of
the Village Board that originally created the commitment.
d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific
purposes that do not meet the criteria to be classified as restricted or committed. The Village
has adopted a financial policy authorizing the Director of Finance to assign amounts for a
specific purpose. Assignments may take place after the end of the reporting period.
e. Unassigned - Includes residual positive fund balance within the general fund which has not been
classified within the other above mentioned categories. Unassigned fund balance may also
include negative balances for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those purposes.
Proprietary fund equity is classified the same as in the government-wide statements.
The Village considers restricted amounts to be spent first when both restricted and unrestricted fund
balance is available unless there are legal documents / contracts that prohibit doing this, such as in grant
agreements requiring dollar for dollar spending. Additionally, the Village would first use committed, then
assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made.
The Village has a formal minimum fund balance policy. That policy is to maintain fund balance in the
General Fund to fund operations for a period of at least three months. The amount in the General Fund is
adjusted annually with the adoption of the annual budget and is calculated as three months (25 percent) of
General Fund expenditures (excluding transfers to fund capital projects and pensions). The balance at
year end was $9,760,213, and is included in unassigned General Fund fund balance.
Page 54
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.EXCESS EXPENDITURES OVER APPROPRIATIONS
Funds
Budgeted
Expenditures
Actual
Expenditures
Excess
Expenditures Over
Budget
Street Maintenance $50,000 $81,460 $31,460
Police Pension 3,090,627 3,192,215 101,588
Firefighters' Pension 2,203,491 2,314,561 111,070
Arboretum Golf 1,361,050 1,431,998 70,948
Motor Fuel Tax 1,679,205 1,781,905 102,700
Metra Parking Lot 152,935 172,853 19,918
Buffalo Grove Golf 1,264,596 1,335,444 70,848
The Village controls expenditures at the department level. Some individual departments experienced
expenditures which exceeded appropriations. The detail of those items can be found in the Village's year-
end budget to actual report.
B.DEFICIT BALANCES
Generally accepted accounting principles require disclosure of individual funds that have deficit balances
at year end.
As of December 31, 2015, the following individual funds held a deficit balance:
Fund Amount Reason
Facilities Development $(3,707,560)Expenditures exceeded revenues
Central Garage (256,541)Expenses exceeded revenues
Building Maintenance (175,362)Expenses exceeded revenues
Page 55
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS
A.DEPOSITS AND INVESTMENTS
The Village's deposits and investments at year end were comprised of the following:
Carrying
Value
Statement
Balances Associated Risks
Deposits $10,108,960 $10,601,657 Custodial Credit Risk -
Deposits
Money market mutual funds 5,116,509 5,116,509 Credit Risk
Illinois Funds 4,664,982 4,584,744 Credit Risk
IMET - money market 1,825,561 1,825,561 Credit Risk
IMET - 1-3 year fund 4,212,181 4,212,181 Credit Risk, Custodial
Credit Risk - Investments,
Interest Rate Risk
U.S. treasuries 11,235,508 11,235,508 Custodial Credit Risk -
Investments, Interest
Rate Risk
U.S. agencies 21,018,363 21,018,363 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Mutual funds - other than bond funds 33,259,723 33,259,723 N/A
Equity securities 26,445,824 26,445,824 Custodial Credit Risk -
Investments,
Concentration of Credit
Risk
Municipal bonds 3,698,712 3,698,712 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Corporate bonds 8,783,622 8,783,622 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Petty cash 2,700 -N/A
Total Deposits and Investments $130,372,645 $130,782,404
Page 56
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Reconciliation to financial statements
Per statement of net position
Cash and equivalents $20,820,574
Investments 2,345,329
Per statement of net position - fiduciary
funds
Cash - pension trusts 4,584,562
Cash - agency 525,757
U.S. treasuries 11,235,508
U.S. agencies 19,168,606
Mutual funds - other than bond funds 33,259,723
Equity securities 26,445,824
Municipal bonds 3,203,140
Corporate bonds 8,783,622
Total Deposits and Investments $130,372,645
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and
savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing
and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the
government is located, insured amounts are further limited to a total of $250,000 for the combined amount
of all deposit accounts.
Custodial Credit Risk
Deposits
Custodial credit risk is the risk that in the event of a financial institution failure, the Village's deposits may
not be returned to the Village.
The Village does not have any deposits exposed to custodial credit risk.
Investments
For an investment, 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 that are in the
possession of an outside party.
The Village does not have any investments exposed to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Page 57
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Credit Risk (cont.)
As of December 31, 2015, the Village's investments were rated as follows:
Investment Type
Standard &
Poors
Moody's
Investors
Services
Money market mutual funds Not Rated Not Rated
Illinois Funds AAA Not Rated
Illinois Metropolitan Investment Fund AAA Not Rated
U.S. agencies
Not Rated,
AA+ to AAA Not Rated, Aaa
Municipal bonds
Not Rated, A to
AAA
Not Rated, A3
to Aaa
Corporate bonds
Not Rated, A-
to AAA
Not Rated, A3
to Aaa
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment.
As of December 31, 2015, the Village's investments were as follows:
Village
Maturity
Investment Type Fair Value
Less than one
year 1 - 5 years
U.S. agencies $1,849,757 $-$1,849,957
Municipal bonds 495,572 -495,572
Totals $2,345,329 $-$2,345,529
Page 58
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Interest Rate Risk (cont.)
Police Pension
Maturity
Investment Type Fair Value
Less than one
year 1-5 years 6-10 years
More than 10
years
U.S. treasuries $8,022,404 $1,197,394 $6,825,010 $-$-
U.S. agencies 3,767,589 993,288 1,276,027 1,498,274 -
Corporate bonds 8,783,622 -5,563,307 1,497,779 1,722,536
Totals $20,573,615 $2,190,682 $13,664,344 $2,996,053 $1,722,536
Firefighters' Pension
Maturity
Investment Type Fair Value
Less than one
year 1-5 years 6-10 years
More than 10
years
U.S. treasuries $3,213,104 $501,672 $2,083,236 $628,196 $-
U.S. agencies 15,401,017 201,601 3,691,955 10,747,923 759,538
Municipal bonds 3,203,140 155,000 1,136,792 1,435,828 475,520
Totals $21,817,261 $858,273 $6,911,983 $12,811,947 $1,235,058
Page 59
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Money-Weighted Rate of Return
Police Pension Fund
For the year ended December 31, 2015, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 0.67%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
Firefighters' Pension Fund
For the year ended December 31, 2015, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 1.32%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
See Note I.D.1. for further information on deposit and investment policies.
B.RECEIVABLES
All of the receivables on the balance sheet are expected to be collected within one year.
Page 60
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C.CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015, was as follows:
Beginning
Balance Additions Deletions
Ending
Balance
Governmental Activities
Capital assets not being depreciated
Land $35,963,844 $-$-$35,963,844
Construction in progress 472,361 453,593 164,294 761,660
Total Capital Assets Not Being
depreciated 36,436,205 453,593 164,294 36,725,504
Capital assets being depreciated
Buildings 22,722,897 487,317 -23,210,214
Equipment and vehicles 12,954,041 221,316 1,290,408 11,884,949
Land improvements 3,179,774 62,286 -3,242,060
Streets 19,040,719 679,402 -19,720,121
Storm sewers 37,665,289 --37,665,289
Total Capital Assets Being
Depreciated 95,562,720 1,450,321 1,290,408 95,722,633
Total Capital Assets 131,998,925 1,903,914 1,454,702 132,448,137
Less: Accumulated depreciation for
Buildings (19,943,035)(469,041)-(20,412,076)
Equipment and vehicles (9,402,542)(675,149)1,121,531 (8,956,160)
Land improvements (277,156)(64,846)-(342,002)
Streets (12,111,137)(381,463)-(12,492,600)
Storm sewers (35,002,073)(593,806)-(35,595,879)
Total Accumulated depreciation (76,735,943)(2,184,305)1,121,531 (77,798,717)
Net Capital Assets Being
Depreciated 18,826,777 (733,984)168,877 17,923,916
Total Governmental Activities
Capital Assets, Net of
Accumulated
Depreciation $55,262,982 $(280,391)$333,171 $54,649,420
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $250,916
Public safety 161,845
Public works 1,771,544
Total Governmental Activities Depreciation Expense $2,184,305
Page 61
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C.CAPITAL ASSETS (cont.)
Beginning
Balance Additions Deletions
Ending
Balance
Business-type Activities
Capital assets not being depreciation
Land $6,198,514 $-$-$6,198,514
Construction in progress -4,118,394 -4,118,394
Total Capital Assets Not Being
depreciation 6,198,514 4,118,394 -10,316,908
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 infrastructure 60,899,559 1,206,909 -62,106,468
Total Capital Assets Being
Depreciated 73,244,916 1,206,909 -74,451,825
Total Capital Assets 79,443,430 5,325,303 -84,768,733
Less: Accumulated depreciation for
Buildings (7,623,353)(521,440)-(8,144,793)
Land improvements (1,966,488)--(1,966,488)
Equipment (94,510)--(94,510)
Water/Sewer infrastructure (33,483,057)(1,129,856)-(34,612,913)
Total Accumulated depreciation (43,167,408)(1,651,296)-(44,818,704)
Net Capital Assets Being
Depreciated 30,077,508 (444,387)-29,633,121
Business-type Capital
Assets, Net of
Accumulated depreciation $36,276,022 $3,674,007 $-$39,950,029
Page 62
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
D.INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS
Interfund Receivables/Payables
The following is a schedule of interfund receivables and payables including any overdrafts on pooled cash
and investment accounts:
Receivable Fund Payable Fund Amount
General Water and Sewerage $37,712
General Arboretum Golf 3,000
General Nonmajor Business Type 4,000
Arboretum Golf General 41,532
Nonmajor Business Type General 20,262
Total - Fund Financial Statements 106,506
Less: Fund eliminations (123,588)
Total Internal Balances - Government-W ide Statement of
Net Position $(17,082)
All amounts are due within one year.
The principal purpose of these interfunds is due to negative cash balances in certain funds and other cash
related transactions. All remaining balances resulted from the time lag between the dates that (1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the
accounting system, and (3) payments between funds are made.
Page 63
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
D.INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS (cont.)
Transfers
The following is a schedule of interfund transfers:
Fund Transferred To Fund Transferred From Amount Principal Purpose
General Water and Sewerage $858,044
To fund administrative,
operating, and maintenance
expenses
General Arboretum Golf 34,828 Administrative expenses
General Nonmajor Business Type 129,100 Administrative expenses
General Nonmajor Governmental 12,000 To fund projects
General Internal Service Funds 86,421 Funding of capital reserve
Nonmajor Governmental General 883,383
Administrative expenses and
funding of capital reserve
Nonmajor Governmental Water and Sewerage 180,000 To fund debt service
Arboretum Golf General 234,840 Administrative expenses
Nonmajor Business Type General 218,105 Administrative expenses
Facilities Development General 1,337,984
Administrative expenses and
funding of capital reserve
Total - Fund Financial Statements 3,974,705
Less: Fund eliminations (3,225,678)
Total Transfers - Government-W ide Statement
of Activities $749,027
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the
budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the
receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations.
For the statement of activities, interfund transfers within the governmental activities or business-type
activities are netted and eliminated.
Page 64
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E.SHORT-TERM DEBT ACTIVITY
The Village issued short-term debt for funding costs related to the Emerald Ash Borer reforestation.
Short-term debt activity for the year ended December 31, 2015, was as follows:
Beginning
Balance Issued Redeemed
Ending
Balance
Line of credit $2,400,000 $1,000,000 $-$3,400,000
Totals $2,400,000 $1,000,000 $-$3,400,000
F.LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended December 31, 2015, was as follows:
Beginning
Balance (as
restated)Increases Decreases
Ending
Balance
Amounts Due
Within One
Year
Governmental Activities
Bonds Payable
General obligation debt $10,550,000 $-$510,000 $10,040,000 $525,000
Premium 180,503 -18,050 162,453 -
Sub-totals 10,730,503 -528,050 10,202,453 525,000
Other Liabilities
Vested compensated
absences 1,246,389 196,212 89,910 1,352,691 89,910
Other postemployment
benefits 509,487 608,091 358,605 758,973 -
Net pension liability 44,398,222 11,756,650 -56,154,872 -
Total Other Liabilities 46,154,098 12,560,953 448,515 58,266,536 89,910
Total Governmental
Activities Long-Term
Liabilities $56,884,601 $12,560,953 $976,565 $68,468,989 $614,910
Business-type Activities
Loans and Notes Payable
IEPA loan payable $400,519 $-$17,032 $383,487 $17,426
Water installment note -1,193,599 -1,193,599 76,552
Sub-totals 400,519 1,193,599 17,032 1,577,086 93,978
Other Liabilities
Vested compensated
absences 174,244 61,695 121,517 114,422 7,605
Net pension liability 611,746 372,871 -984,617 -
Total Other Liabilities 785,990 434,566 121,517 1,099,039 7,605
Total Business-type
Activities Long-Term
Liabilities $1,186,509 $1,628,165 $138,549 $2,676,125 $101,583
Page 65
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F.LONG-TERM OBLIGATIONS (cont.)
General Obligation Debt
All general obligation bonds payable are backed by the full faith and credit of the Village. Bonds in the
governmental funds will be retired by future property tax levies or tax increments accumulated by the debt
service fund.
Governmental Activities
General Obligation Debt
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
December 31,
2015
General Obligation
Bonds Series 2010A 4/6/2010 12/31/2020 2.0-4.0%$5,160,000 $1,805,000
General Obligation
Bonds Series 2010B 4/6/2010 12/31/2025 2.5-3.85%2,600,000 2,235,000
General Obligation
Bonds Series 2012 8/27/2012 6/30/2030 2.0-2.75%6,000,000 6,000,000
Total Governmental Activities - General Obligation Debt $10,040,000
Debt service requirements to maturity are as follows:
Governmental Activities
General Obligation Debt
Years Principal Interest
2016 $525,000 $282,063
2017 545,000 266,313
2018 665,000 249,463
2019 680,000 225,888
2020 715,000 201,738
2021-2025 3,410,000 711,423
2026-2030 3,500,000 276,125
Totals $10,040,000 $2,213,013
IEPA Loan Payable
The Village borrowed funds from the Illinois Environmental Protection Agency (IEPA) for the design,
construction, and installation of various architectural, mechanical and electrical improvements to the
Village's four existing pump stations. Under loan agreement #L17-4103, the Village can borrow up to
$710,000 and has borrowed $383,487 as of December 31, 2015.
Page 66
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F.LONG-TERM OBLIGATIONS (cont.)
Business-type Activities
IEPA Loan Payable
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
December 31,
2015
IEPA Loan Payable 11/20/2013 12/1/2033 2.295%$407,307 $383,487
Total Business-type Activities IEPA Loan Payable $383,487
Debt service requirements to maturity are as follows:
Business-type Activities
IEPA Loan Payable
Years Principal Interest
2016 $17,426 $8,702
2017 17,828 8,299
2018 18,240 7,888
2019 18,661 7,467
2020 19,092 7,036
2021-2025 102,275 28,364
2026-2030 114,636 16,003
2031-2033 75,329 3,054
Totals $383,487 $86,813
Water Installment Note
In fiscal year 2015, the Village entered into an installment note agreement with U.S. Bankcorp to fund its
water meter project. The Village receives installment proceeds as water meters are purchased or work is
performed on the project. U.S. Bankcorp (seller of the installment note) placed $6,970,999 into escrow on
the closing date of the agreement. As of December 31, 2015, the Village had received $1,193,599 in
installment note proceeds. The Village received an additional $3,421,774 in installment note proceeds
during fiscal year 2016. As the Village has not finished borrowing on the note, a debt service to maturity
schedule is not known. The Village is required to start making payments in 2016 ($76,552).
Other Debt Information
In the governmental activities, the Village's obligation for compensated absences, other postemployment
benefits, and net pension liability will be repaid from the General Fund.
Page 67
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F.LONG-TERM OBLIGATIONS (cont.)
Prior-Year Defeasance of Debt
In prior years, the Village defeased certain general obligation and other 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, 2015, $1,915,000 of bonds outstanding are considered
defeased.
G. LEASE DISCLOSURES
Lessee - Operating Leases
The Village has commitments with non-Village entities to lease certain property. Future minimum rental
commitments as of December 31, 2015 are as follows:
Years Amount
2016 $121,741
2017 124,176
2018 126,660
2019 129,193
2020 131,777
2021-2025 650,349
Totals $1,283,896
Page 68
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
H.RESTATEMENT OF NET POSITION
Net position has been restated as a result of the implementation of GASB Statement No. 68 - Accounting
and Financial Reporting for Pensions - an Amendment of GASB Statement No. 27 and implementation of
GASB Statement No. 71 - Pension Transition for Contributions Made Subsequent to the Measurement
Date. These statements require the net pension liability and related deferred outflows and deferred
inflows, if any, to be reported in the financial statements. The details of this restatement are as follows:
Government-W ide Financial
Statements Proprietary Financial Statements
Governmental
Activities
Business-type
Activities
Water &
Sewerage
Arboretum
Golf
Non-major
Enterprise
Funds
Net Position - December 31, 2014
(as reported)$64,425,792 $46,938,676 $37,342,467 $7,641,279 $1,119,875
Add: Prior year police net pension
liability 46,710 ----
Less: Prior year fire pension asset (615,057)----
Less: Net Pension liability - IMRF (2,989,805)(611,746)(408,688)(70,230)(132,848)
Add: Deferred outflows related to
pensions - IMRF 861,095 229,991 121,647 50,075 58,269
Less: Net pension liability - Police (25,087,541)----
Less: Net pension liability - Fire (16,320,876)----
Net position - December 31, 2014
(as restated)$20,320,318 $46,556,921 $37,055,426 $7,621,124 $1,045,296
NOTE IV - OTHER INFORMATION
A.EMPLOYEES' RETIREMENT SYSTEM
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund
(IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan which is
a single-employer pension plan; and the Firefighters' Pension Plan which is a single-employer pension
plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are
governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The
Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension
plans. IMRF does issue a publicly available report that includes financial statements and supplementary
information for the plan as a whole, but not for individual employers. That report can be obtained from
IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
Page 69
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Illinois Municipal Retirement Fund
Plan description. All employees (other than those covered by the Police and Firefighters' Pension plans)
hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as
participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois
Reciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2.
For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire at
or after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for life
in an amount equal to 1 2/3% of their final rate of earnings (average of the highest 48 consecutive months'
earnings during the last 10 years) for credited service up to 15 years and 2% for each year thereafter.
For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire at
or after age 67 with 10 years of service are entitled to an annual retirement benefit, payable monthly for
life in an amount equal to 1 2/3% of their final rate of earnings (average of the highest 96 consecutive
months' earnings during the last 10 years, capped at $106,800) for credited service up to 15 years and 2%
for each year thereafter. However, an employee’s total pension cannot exceed 75% of their final rate of
earnings. If an employee retires after 10 years of service between the ages of 62 and 67, and has less
than 30 years of service credit, the pension will be reduced by 1/2% for each month that the employee is
under the age of 67. If an employee retires after 10 years of service between the ages of 62 and 67, and
has between 30 and 35 years of service credit, the pension will be reduced by the lesser of 1/2% for each
month that the employee is under the age of 67 or 1/2% for each month of service credit less than 35
years. IMRF also provides death and disability benefits. These benefit provisions and all other
requirements are established by Illinois Compiled Statutes.
Plan membership. At December 31, 2014, the measurement date, membership in the plan was as
follows:
Retirees and beneficiaries 90
Inactive, non-retired members 51
Active members 107
Total 248
Contributions. As set by statute, Village employees participating in IMRF are required to contribute
4.50% of their annual covered salary. The statute requires the Village to contribute the amount necessary,
in addition to member contributions, to finance the retirement coverage of its own employees. The
Village's actuarially determined contribution rate for calendar year 2014 was 13.08% percent of annual
covered payroll. The Village also contributes for disability benefits, death benefits and supplemental
retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death
benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by
statute.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2014,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
actuarial valuation as of that date.
Page 70
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Summary of Significant Accounting Policies. For purposes of measuring the net pension
liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of IMRF and additions to/deductions from
IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
Actuarial Assumptions. The assumptions used to measure the total pension liability in the December 31,
2014 annual actuarial valuation included a 7.49% investment rate of return, (b) projected salary increases
from 3.75% to 14.50%, including inflation, and (c) inflation of 3.50% and price inflation of 2.75%. The
retirement age is based on experience-based table of rates that are specific to the type of eligibility
condition. The tables were last updated for the 2014 valuation pursuant to an experience study of the
period 2011-2013.
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Investment Rate of Return 7.49%
Inflation 3.50%
Salary increases 3.75% to 14.50%, including inflation
Price inflation 2.75%
Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational
projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014
Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For
disabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-
2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled Retirees
Mortality Table applying the same adjustment that were applied for non-disabled lives. For active
members, an IMRF specific mortality table was used with fully generational projection scale MP-2014
(base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table
with adjustments to match current IMRF experience.
Page 71
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan
investments was determined using an asset allocation study in which best-estimate ranges of expected
future real rates of return (net of pension plan investment expense and inflation) were developed for each
major asset class. These ranges were combined to produce long-term expected rate of return by the
target asset allocation percentage and by adding expected inflation. The target allocation and best
estimates of arithmetic and geometric real rates of return for each major asset class are summarized in
the following table:
Projected Returns/Risks
Asset Class
Target
Allocation
One Year
Arithmetic
Ten Year
Geometric
Equities 63.20%9.15%7.60%
International Equities 2.60%9.80%7.80%
Fixed income 23.50%3.05%3.00%
Real estate 4.30%7.35%6.15%
Alternatives 4.50%
Private equity 13.55%8.50%
Hedge funds 5.55%5.25%
Commodities 4.40%2.75%
Cash equivalents 1.90%2.25%2.25%
Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.49%. The
discount rate calculated using the December 31, 2013 measurement date was 7.50%. The projection of
cash flows used to determine the discount rate assumed that member contributions will be made at the
current contribution rate and that Village contributions will be made at rates equal to the difference
between actuarially determined contribution rates and the member rate. Based on those assumptions, the
fiduciary net position was projected not to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on investments of 7.50% was
blended with the index rate of 3.56% for tax exempt 20-year general obligation municipal bonds with an
average AA credit rating at December 31, 2014 to arrive at a discount rate of 7.49% used to determine the
total pension liability. The year ending December 31, 2086 is the last year in the 2015 to 2114 projection
period for which projected benefit payments are fully funded.
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to
changes in the discount rate. The table below presents the pension liability of the Village calculated using
the discount rate of 7.49% as well as what the net pension liability/(asset) would be if it were to be
calculated using a discount rate that is 1 percentage point lower (6.49%) or 1 percentage point higher
(8.49%) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $62,091,898 $54,600,269 $48,460,300
Plan fiduciary net pension 48,803,503 48,803,503 48,803,503
Net pension liability/(asset)$13,288,395 $5,796,766 $(343,203)
Page 72
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset). The Village's changes in net pension liability/(asset) for the
calendar year ended December 31, 2014 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability/(Asset) (a)
- (b)
Balances at December 31, 2013 $51,366,296 $47,764,745 $3,601,551
Service cost 964,574 -964,574
Interest on total pension liability 3,808,085 -3,808,085
Differences between expected and actual
experience of the total pension liability
(1,126,970)-(1,126,970)
Change of assumptions 1,736,515 -1,736,515
Benefit payments, including refunds of
employee contributions
(2,148,231)(2,148,231)-
Contributions - employer -1,071,994 (1,071,994)
Contributions - employee -369,278 (369,278)
Net investment income -2,892,087 (2,892,087)
Other (net transfer)-(1,146,370)1,146,370
Balances at December 31, 2014 $54,600,269 $48,803,503 $5,796,766
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended December 31, 2015, the Village recognized pension expense of
$2,291,785. The Village reported deferred outflows and inflows of resources related to pension from the
following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience $-$885,255
Assumption changes 1,364,064 -
Net difference between projected and actual earnings on pension
plan investments 496,615 -
Contributions subsequent to the measurement date 1,052,666 -
Total $2,913,345 $885,255
Page 73
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amount reported as deferred outflows resulting from contributions subsequent to the measurement
date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year
ending December 31, 2015. The remaining amounts reported as deferred outflows and inflows of
resources related to pensions ($975,424) will be recognized in pension expense as follows:
Year Ending December 31,Village
2015 $254,890
2016 254,890
2017 254,890
2018 210,754
Total $975,424
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 contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS
5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension
trust fund.
As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death
and disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1,
2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police Pension
Fund as provided for in Illinois Compiled Statutes.
Tier 1 - Covered 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 on the last
day of service, or for one year prior to the last day, whichever is greater. The pension shall be 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 8 years but less than 20 years of credited service may retire
at or after age 60 and receive a reduced retirement benefit. The monthly pension of a police officer who
retired with 20 or more years of service after January 1, 1977 shall be 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% compounded annually thereafter.
Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are
entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable
service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%
of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50
and receive a reduced retirement benefit. The monthly pension of a police officer shall be increased
annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of
the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one half the
annual unadjusted percentage increase in the CPI, whichever is less.
Page 74
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Plan membership. At December 31, 2015, the Police Pension membership consisted of:
Retirees and beneficiaries 46
Inactive, non-retired members 4
Active members 61
Total 111
Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police
Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The Village is required to
contribute the remaining amounts necessary to finance the plans as actuarially determined by an enrolled
actuary. Effective January 1, 2011 the Village’s contributions must accumulate to the point where the past
service cost for the Police Pension Plan is 90% funded by the year 2040. The Village's actuarially
determined contribution rate for the fiscal year ending December 31, 2015 was 37.50% of annual covered
payroll.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2015,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
annual actuarial valuation as of that date.
Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are
prepared using the accrual basis of accounting. Plan member contributions are recognized in the period in
which contributions are due. The Village’s contributions are recognized when due and a formal
commitment to provide the contributions are made. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which
approximated fair value. Investments that do not have an established market are reported at estimated
fair values.
Page 75
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as
of December 31, 2015 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Interest rate 6.81%
Inflation 2.50%
Projected salary increases 3.50%
Cost-of-living adjustments Tier 1 - 3.00%
Tier 2 - 2.00%
Mortality rates were based on the L&A 2016 Illinois Police Mortality Table. The actuarial assumptions
were based on the results of an actuarial assumption study conducted by Lauterbach & Amen, LLP in
2016.
Long-term expected real rate of return. See Note I. D. 1 for Police Pension Fund investment policy,
including target allocations and long-term expected real rate of return.
Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan
was 6.81%, the same as the prior valuation. The projection of cash flows used to determine the discount
rate assumed that member contributions will be made at the current contribution rate and that Village
contributions will be made at rates equal to the difference between actuarially determined contribution
rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projected
to be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on Plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in
the discount rate. The table below presents the pension liability of the Village calculated using the
discount rate of 6.81% as well as what the net pension liability would be if it were to be calculated using
a discount rate that is 1 percentage point lower (5.81%) or 1 percentage point higher (7.81%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $102,777,674 $88,992,906 $77,810,721
Plan fiduciary net position 56,384,953 56,384,953 56,384,953
Net pension liability $46,392,721 $32,607,953 $21,425,768
Page 76
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the
calendar year ended December 31, 2015 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at January 1, 2015 $81,341,993 $56,254,452 $25,087,541
Service cost 1,386,660 -1,386,660
Interest on total pension liability 5,438,273 -5,438,273
Differences between expected and actual
experience of the total pension liability (1,015,708)-(1,015,708)
Change of assumptions 4,811,344 -4,811,344
Benefit payments, including refunds of employee
contributions (2,969,657)(2,969,657)-
Contributions - employer -2,284,315 (2,284,315)
Contributions - employee -669,077 (669,077)
Net investment income -186,635 (186,635)
Administration -(39,870)39,870
Balances at December 31, 2015 $88,992,905 $56,384,952 $32,607,953
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended December 31, 2015, the Village recognized pension expense of
$2,247,587. The Village reported deferred outflows and inflows of resources related to pension from the
following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience $-$848,925
Assumption changes 4,021,303 -
Net difference between projected and actual earnings on pension
plan investments 2,999,262 -
Total $7,020,565 $848,925
Page 77
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($6,171,640)
will be recognized in pension expense as follows:
Year Ending December 31,Amount
2016 $1,373,074
2017 1,373,074
2018 1,373,074
2019 1,373,072
2020 623,258
Thereafter 56,088
Total $6,171,640
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
and employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS
5/3) and may be amended only by the Illinois legislature. The Village accounts for the plan as a pension
trust fund.
As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement
benefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is for
employees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following is
a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes.
Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service are
entitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank held
in the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5%
of such monthly salary for each additional month over 20 years of service through 30 years of service to a
maximum of 75% of such monthly 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. The monthly
pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall be
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% compounded annually thereafter.
Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service are
entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable
service. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%
of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50
and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annually
on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the
pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase in the CPI, whichever is less.
Page 78
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Plan membership. At December 31, 2015, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries 33
Inactive, non-retired members 1
Active members 55
Total 89
Contributions. Participants contribute a fixed percentage of their base salary to the plans. At December
31, 2015, the contribution percentage was 9.455%. If a participant leaves covered employment with less
than 20 years of service, accumulated participant contributions may be refunded without accumulated
interest. The Village is required to contribute the remaining amounts necessary to finance the plans as
actuarially determined by an enrolled actuary. Effective January 1, 2011 the Village’s contributions must
accumulate to the point where the past service cost for the Firefighters' Pension Plan is 90% funded by
the year 2040. The Village's actuarially determined contribution rate for the fiscal year ending December
31, 2015 was 40.07% of annual covered payroll.
Net pension liability/(asset). The net pension liability/(asset) was measured as of December 31, 2015,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
annual actuarial valuation as of that date.
Summary of significant accounting policies. The financial statements of the Firefighters' Pension Plan
are prepared using the accrual basis of accounting. Plan member contributions are recognized in the
period in which contributions are due. The Village’s contributions are recognized when due and a formal
commitment to provide the contributions are made. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which
approximated fair value. Investments that do not have an established market are reported at estimated
fair values.
Page 79
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as
of December, 2015 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Interest rate 7.00%
Inflation 3.00%
Projected salary increases 5.25%
Cost-of-living adjustments Tier 1 - 3.00%
Tier 2 - 2.00%
Mortality rates were based on the L&A 2016 Illinois Firefighters Mortality Table. The actuarial
assumptions were based on the results of an actuarial assumption study conducted by Lauterbach &
Amen, LLP in 2016.
Long-term expected real rate of return. See Note I. D. 1 for Firefighters' Pension Fund investment
policy including target allocation and long-term expected real rate of return.
Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension
Plan was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the
discount rate assumed that member contributions will be made at the current contribution rate and that
Village contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on Plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes in
the discount rate. The table below presents the pension liability of the Village calculated using the
discount rate of 7.00% as well as what the net pension liability would be if it were to be calculated using
a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $79,990,118 $69,082,934 $60,228,179
Plan fiduciary net position 50,348,164 50,348,164 50,348,164
Net pension liability $29,641,954 $18,734,770 $9,880,015
Page 80
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset).The Village's changes in net pension liability/(asset) for the
calendar year ended December 31, 2015 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at January 1, 2015 $65,477,594 $49,156,718 $16,320,876
Service cost 1,179,270 -1,179,270
Interest on total pension liability 4,508,473 -4,508,473
Differences between expected and actual
experience of the total pension liability (1,080,688)-(1,080,688)
Change of assumptions 1,139,953 -1,139,953
Benefit payments, including refunds of employee
contributions (2,141,668)(2,141,668)-
Contributions - employer -2,202,138 (2,202,138)
Contributions - employee -524,714 (524,714)
Net investment income -654,625 (654,625)
Administration -(48,363)48,363
Balances at December 31, 2015 $69,082,934 $50,348,164 $18,734,770
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended December 31, 2015, the Village recognized pension expense of
$2,335,501. The Village reported deferred outflows and inflows of resources related to pension from the
following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience $-$950,170
Assumption changes 1,002,277 -
Net difference between projected and actual earnings on pension
plan investments 2,228,404 -
Total $3,230,681 $950,170
Page 81
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($2,280,511)
will be recognized in pension expense as follows:
Year Ending December 31,Amount
2016 $564,259
2017 564,259
2018 564,259
2019 564,259
2020 7,158
Thereafter 16,317
Total $2,280,511
PENSION SEGMENT INFORMATION
Fiduciary Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Assets
Cash $4,099,718 $484,844 $4,584,562
Investments
U.S. treasuries 8,022,404 3,213,104 11,235,508
U.S. agencies 3,767,589 15,401,017 19,168,606
Mutual funds - other than bond funds 5,334,653 27,925,070 33,259,723
Equity securities 26,445,824 -26,445,824
Municipal bonds -3,203,140 3,203,140
Corporate bonds 8,783,622 -8,783,622
Receivables
Interest 49,521 133,258 182,779
Prepaid items 3,297 2,081 5,378
Due from primary government 15,821 20,345 36,166
Total Assets 56,522,449 50,382,859 106,905,308
Liabilities
Accounts payable 52,868 34,388 87,256
Due to primary government 84,629 307 84,936
Total Liabilities 137,497 34,695 172,192
Net Position
Held in trust for pension benefits $56,384,952 $50,348,164 $106,733,116
Page 82
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in Plan Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Additions
Contributions
Employer $2,284,315 $2,202,138 $4,486,453
Plan members 669,077 524,714 1,193,791
Total Contributions 2,953,392 2,726,852 5,680,244
Investment Income
Net appreciation in fair value of investments (141,113)209,298 68,185
Interest 510,436 569,857 1,080,293
Total Investment income 369,323 779,155 1,148,478
Less investment income 182,688 124,530 307,218
Net investment income 186,635 654,625 841,260
Total Additions 3,140,027 3,381,477 6,521,504
Deductions
Administration 39,870 48,363 88,233
Pension benefits and refunds 2,969,657 2,141,668 5,111,325
Total Deductions 3,009,527 2,190,031 5,199,558
Net change in net position 130,500 1,191,446 1,321,946
Net position, beginning of year 56,254,452 49,156,718 105,411,170
Net position, end of year $56,384,952 $50,348,164 $106,733,116
B.RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. The Village participates in
a public entity risk pool called the Intergovernmental Risk Management Agency (IRMA) to provide
coverage for losses from torts; theft of, damage to and destruction of assets; errors and omissions;
natural disasters; and injuries to the Village's employees. The Village purchases commercial insurance
coverage for health and related benefits.
Page 83
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
B.RISK MANAGEMENT (cont.)
Public Entity Risk Pool
IRMA
The Village participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an
organization of municipalities and special districts in Northeastern Illinois that have formed an association
under the Illinois Intergovernmental Co-operations Statute to pool their risk management needs. The
agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and
workers’ compensation claim administration/litigation management services; unemployment claim
administration; extensive risk management/loss control consulting and training programs; and a risk
information system and financial reporting service for its members.
The Village’s payments to IRMA are displayed on the financial statements as expenditures/expenses in
appropriate funds. Each member assumes the first $2,500 of each occurrence, and 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 IRMA 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 bylaws of IRMA and experience modification factors based on past member loss
experience. Members have a contractual obligation to fund any deficit of IRMA attributable to any
membership year during which they were a member. Supplemental contributions may be required to fund
these deficits.
C.COMMITMENTS AND CONTINGENCIES
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting
Standards Board pronouncements are met. The liability and expenditure for claims and judgments are
only reported in governmental funds if it has matured. Claims and judgments are recorded in the
government-wide statements and proprietary funds as expenses when the related liabilities are incurred.
Page 84
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
D.JOINT VENTURES
Solid Waste Agency of Northern Cook County (SWANCC)
The Village is a member of the Solid W aste 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 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.
The Agency covenants to establish fees and charges sufficient to provide revenues to meet all its
requirements.
The Agency has entered into Solid W aste 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 $702,105 to SW ANCC for the year
ended December 31, 2015.
Page 85
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
D.JOINT VENTURES (cont.)
The Village has committed to make payments to the Solid W aste 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.
Complete financial statements for SW ANCC can be obtained from the Agency's administrative office at
2700 Patriot Boulevard, Suite 110, Glenview, Illinois 60026.
Northwest Water Commission (NWWC)
The Village is a member of the Northwest W ater 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.
The members form a contiguous geographic service area which is located northwest of downtown
Chicago. Under the Commission Agreement, additional members may join the Commission upon the
approval of each member.
The Commission is governed by a Board of Commissioners, which consists of one Village Manager
from each member municipality. Each Commissioner has an equal vote. The officers of the
Commission are appointed by the Board of Commissioners. The Board of Commissioners determines
the general policy of the Commission, makes all appropriations, approves contracts for sale or purchase
of water, adopts resolutions providing for the issuance of bonds or notes by the Commission, adopts by
laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed in
the Commission Agreement or the by-laws.
The Commission has entered into W ater 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.
Page 86
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
D.JOINT VENTURES (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 W ater and
Sewerage Fund and from all other accounts of the Village's W ater and Sewerage Fund in which there are
available funds.
In accordance with the joint venture agreement, the Village remitted $1,671,152 to NW WC for the year
ended December 31, 2015. The Village's equity interest in NW WC was $6,904,375 at December 31,
2015. The Village's net investment and its share of the operating results of NW WC are recorded in the
Village's W ater and Sewerage Fund.
The Village has committed to retire a portion of the outstanding debt of the Northwest W ater 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.
Complete financial statements for NW WC can be obtained from the Commission's administrative office at
1525 North W olf Road, Des Plaines, Illinois 60016.
E.OTHER POSTEMPLOYMENT BENEFITS
The Village administers a single-employer defined benefit healthcare plan The (the Village of Buffalo
Grove Group Health Plan (the plan) provides for eligible retirees and their spouses through the Village’s
which covers both active and retired members. Benefit provisions are established through and state that
eligible retirees and their spouses at established contribution rates.
Contribution requirements are established through personnel policy guidelines and may be amended by
the action of the governing body.The plan may be amended by the Village Board and is 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 2015, the Village contributed $358,605 to the Plan. Plan
members receiving benefits contributed $391,140 through their required contribution of $614 per month
for retiree only coverage and $1,241 per month for retiree and spouse coverage.
Page 87
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
The Village’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the
annual required contribution of the employer (ARC) 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 plan, and
changes in the Village’s net OPEB obligation to the Retiree Health Plan:
Annual required contribution $604,694
Interest on net OPEB obligation 20,380
Adjustment to annual required contribution (16,983)
Annual OPEB cost 608,091
Contributions made (358,605)
Increase in net OPEB obligation (asset)249,486
Net OPEB Obligation (Asset) - Beginning of Year 509,487
Net OPEB Obligation (Asset) - End of Year $758,973
The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2015 were as follows:
Fiscal Year Ended
Annual OPEB
Cost
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
December 31, 2013 $269,622 81.16%$425,400
December 31, 2014 302,918 72.24%509,487
December 31, 2015 608,091 58.97%758,973
Page 88
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
The funded status of the plan as of December 31, 2015, the most recent actuarial valuation date, was as
follows:
Actuarial accrued liability (AAL)$9,333,479
Actuarial value of plan assets -
Unfunded Actuarial Accrued Liability (UAAL)$9,333,479
Funded ratio (actuarial value of plan assets/AAL)-%
Covered payroll (active plan members)$19,769,052
UAAL as a percentage of covered payroll 47%
Actuarial valuations of an ongoing plan involve estimates for 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 annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing benefit costs between the employer and plan members
to that point. The methods and assumptions used include techniques that are designed to reduce 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, 2015 actuarial valuation, the entry age actuarial cost method was used. The actuarial
assumptions include a 4.00% investment rate of return and an annual healthcare cost trend rate of 7.30%
initially, reduced by decrements to an ultimate rate of 5.50% after 10 years. Both rates include a 3.00%
inflation assumption. The actuarial value of Retiree Health Plan assets was determined using techniques
that spread the effects of short-term volatility in the market value of investments over a three-year period.
The plan’s unfunded actuarial accrued liability is being amortized as a level percentage of projected
payroll on an open basis. The amortization period at December 31, 2015, was 30 years.
Page 89
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
F.SUBSEQUENT EVENTS
On April 18, 2016 the Village issued general obligation corporate purpose bonds, series 2016 in the
amount of $6,280,000 with annual principal payments ranging from $300,000 to $730,000 beginning
December 30, 2017 and ending on December 30, 2031 with an interest rate of 2.00% to 3.00%. This
amount will be used to finance street improvements and related infrastructure.
G.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved the following:
Statement No. 72, Fair Value Measurement and Application
Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets
That Are Not Within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68
Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions
Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and
Local Government
Statement No. 77, Tax Abatement Disclosures
Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined Benefit
Pension Plans
Statement No. 79, Certain External Investment Pools and Pool Participants
Statement No. 80, Blending Requirements for Certain Component Units - an amendment of
GASB Statement No. 14
Statement No. 81 Irrevocable Split-Interest Agreements
Statement No. 82, Pension Issues - an amendment of GASB Statement No. 67, No. 68, and
No. 73
When they become effective, application of these standards may restate portions of these financial
statements.
Page 90
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
H.PLEDGED REVENUE
The Village has pledged a portion of future sales tax revenues to local retailers. In order to increase its
competitiveness in the marketplace by establishing a single-order acceptance point for all its credit sales,
the local retailers entered into a municipal sales tax incentive agreement with the Village, where the
Village will pay to the retailers, a portion of the municipal component of the sales tax revenue generated
by the retailers from credit sales as provided in the agreement.
The first agreement commenced November 2000 (first sales tax year), was amended in March 2003 and
August 2009, and terminates in calendar year 2020. The terms of 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 $476,436. There was no municipal sales
taxes due to the local retailer as of December 31, 2015.
The second agreement commenced March 2011. The terms of the agreement indicate that beginning in
March 2011, 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, 100% of that year's incremental municipal sales tax, declining 10%
each year until the sixth sales tax year.
Page 91
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2015
NOTE IV - OTHER INFORMATION (cont.)
H.PLEDGED REVENUE (cont.)
For the seventh tax year, 50% of that year's incremental municipal sales tax will be distributed to
the local retailer.
The Village will continue the municipal tax payments for seven years through the term of the
agreement or for an incentive of $500,000, whichever comes first.
If the local retailer ceases its business on the premises within seven years of the commencement date of
the agreement, the local retailer must reimburse the Village 100% of the payments received within 90
days of cessation of the business. Should the local retailer relocate or conduct less than $10,000 in sales
tax in an annual period for two consecutive years, the local retailer must reimburse the Village 100% of the
municipal tax payments received within 90 days of written demand from the Village.
The total municipal sales taxes remitted to the local retailer was $167,175. There were no municipal
sales taxes due to the local retailer as of December 31, 2015.
Page 92
R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Charges for services $1,141,138 $1,330,097 $188,959
Licenses and permits 291,600 350,042 58,442
Fines and fees 1,773,738 1,748,855 (24,883)
Property 14,034,943 14,114,565 79,622
Other taxes 9,619,268 9,712,718 93,450
Intergovernmental 10,302,182 11,256,750 954,568
Interest 60,050 25,061 (34,989)
Miscellaneous income 963,050 1,404,841 441,791
Total Revenues 38,185,969 39,942,929 1,756,960
EXPENDITURES
Current:
General government 5,013,943 4,911,919 102,024
Public safety 26,018,564 25,237,115 781,449
Public works 6,050,744 6,310,830 (260,086)
Total Expenditures 37,083,251 36,459,864 623,387
Excess of revenues over expenditures 1,102,718 3,483,065 2,380,347
OTHER FINANCING SOURCES (USES)
Sales of capital assets -1,601 1,601
Transfers in 852,500 1,120,393 267,893
Transfers out (1,943,943)(2,674,312)(730,369)
Total Other Financing Sources (Uses)(1,091,443)(1,552,318)(460,875)
Net Change in Fund Balance $11,275 1,930,747 $1,919,472
FUND BALANCE - Beginning of Year 21,368,147
FUND BALANCE - END OF YEAR $23,298,894
See independent auditors' report and accompanying notes to required supplementary information.
Page 93
See independent auditors' report and accompanying notes to required supplementary information.
Page 94
VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND - REGULAR PLAN
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY
AND RELATED RATIOS
Most Recent Fiscal Year
2015
Total pension liability
Service cost 964,574$
Interest 3,808,085
Differences between expected and actual experience (1,126,970)
Changes of assumptions 1,736,515
Benefit payments, including refunds of member contributions (2,148,231)
Net change in total pension liability 3,233,973
Total pension liability - beginning 51,366,296
Total pension liability - ending (a)54,600,269$
Plan fiduciary net position
Employer contributions 1,071,994$
Employee contributions 369,278
Net investment income 2,892,087
Benefit payments, including refunds of member contributions (2,148,231)
Other (net transfer)(1,146,370)
Net change in plan fiduciary net position 1,038,758
Plan fiduciary net position - beginning 47,764,745
Plan fiduciary net position - ending (b)48,803,503$
Employer's net pension liability - ending (a) - (b)5,796,766$
Plan fiduciary net position as a percentage of the total
pension liability 89.38%
Covered-employee payroll 8,195,678$
Employer's net pension liability as a percentage of covered-
employee payroll 70.73%
Notes to Schedule:
The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
See independent auditors' report and accompanying notes to required supplementary information.
Page 95
VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND - REGULAR PLAN
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Most Recent Fiscal Year
2015
Actuarially determined contribution 1,071,995$
Contributions in relation to the actuarially
determined contribution (1,071,994)
Contribution deficiency (excess)1$
Covered-employee payroll 8,195,678$
Contributions as a percentage of covered-
employee payroll 13.08%
Notes to Schedule:
Valuation date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation 3.00%
Salary increases
Investment rate of return 7.50%
Retirement Age
Mortality RP-2000 CHBCA
Other information:
There were no benefit changes during the year.
4.40% to 16.00% including inflation
Experience-based table of rates that are specific to the type of eligibility
condition
Actuarially determined contribution rates are calculated as of December 31 each year, one year prior to the end of the
fiscal year in which contributions are reported.
The Village implemented GASB Statement No. 68 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
Entry age normal
Level percentage of payroll, closed
29 years
5-Year Smoothed Market
Page 96
2014 2015
Total pension liability
Service cost 1,415,171$ 1,386,660$
Interest 5,318,732 5,438,273
Difference between expected and actual experience - (1,015,708)
Changes in assumptions - 4,811,344
Benefit payments, including refunds of member contributions (2,747,592) (2,969,657)
Net change in total pension liability 3,986,311 7,650,912
Total pension liability - beginning 77,355,682 81,341,993
Total pension liability - ending (a)81,341,993$ 88,992,905$
Plan fiduciary net position
Employer contributions 2,083,758$ 2,284,315$
Employee contributions 654,693 669,077
Net investment income 3,756,487 186,635
Benefit payments, including refunds of member contriutions (2,747,592) (2,969,657)
Administration (33,343) (39,870)
Net change in plan fiduciary net position 3,714,003 130,500
Plan fiduciary net position - beginning 52,540,449 56,254,452
Plan fiduciary net position - ending (b)56,254,452$ 56,384,952$
Village's net pension liability - ending (a) - (b)25,087,541$ 32,607,953$
Plan fiduciary net position as a percentage of the total
pension liability 69.16%63.36%
Covered-employee payroll 5,984,178$ 6,056,962$
Village's net pension liability as a percentage of covered-
employee payroll 419.23%538.35%
Notes to Schedule:
See independent auditors' report and accompanying notes to required supplementary information.
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS
As of and for the Year Ended December 31, 2015
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
Page 97
2014 2015
Actuarially determined contribution 2,359,777$ 2,256,676$
Contributions in relation to the actuarially
determined contribution 2,083,758 2,284,315
Cotnribution deficiency (excess)276,019$ (27,639)$
Covered-employee payroll 5,984,178$ 6,056,962$
Contributions as a percentage of covered-
employee payroll 34.82%37.71%
Notes to Schedule:
Valuation date: January 1, 2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return 7.00%, net of pension plan investment expense, including inflation
Mortality Mortality rates were based on L&A 2016 Illinois Police table.
The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
See independent auditors' report and accompanying notes to required supplementary information.
Entry-age
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the Year Ended December 31, 2015
Level percentage of payroll, closed
30 years
Market Value
2.50%
4.00% to 8.67%, average, including inflation
Page 98
2014 2015
Annual money-weighted rate of return,
net of investment expense 7.00%0.67%
Notes to Schedule:
See independent auditors' report and accompanying notes to required supplementary information.
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
As of December 31, 2015
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
Page 99
2014 2015
Total pension liability
Service cost 1,378,069$ 1,179,270$
Interest Changes of benefit terms 4,304,137 4,508,473
Differences between expected and actual experience 218,159 (1,080,688)
Changes of assumptions (938,734) 1,139,953
Benefit payments, including refunds of member contributions (1,943,411) (2,141,668)
Net change in total pension liability 3,018,220 3,605,340
Total pension liability - beginning 62,459,374 65,477,594
Total pension liability - ending (a)65,477,594$ 69,082,934$
Plan fiduciary net position
Employer contributions 2,168,844$ 2,202,138$
Employee contributions 502,014 524,714
Net investment income 3,195,916 654,625
Benefit payments, including refunds of member contriutions (1,943,409) (2,141,668)
Administration (42,368) (48,363)
Net change in plan fiduciary net position 3,880,997 1,191,446
Plan fiduciary net position - beginning 45,275,721 49,156,718
Plan fiduciary net position - ending (b)49,156,718$ 50,348,164$
Village's net pension liability - ending (a) - (b)16,320,876$ 18,734,770$
Plan fiduciary net position as a percentage of the total
pension liability 75.07%72.88%
Covered-employee payroll 5,224,950$ 5,308,713$
Village's net pension liability as a percentage of covered-
employee payroll 312.36%352.91%
Notes to Schedule:
See independent auditors' report and accompanying notes to required supplementary information.
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS
As of and for the Year Ended December 31, 2015
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
Page 100
2014 2015
Actuarially determined contribution 1,884,815$ 1,848,990$
Contributions in relation to the actuarially
determined contribution 2,168,844 2,202,138
Cotnribution deficiency (excess)(284,029)$ (353,148)$
Covered-employee payroll 5,224,950$ 5,308,713$
Contributions as a percentage of covered-
employee payroll 41.51%41.48%
Notes to Schedule:
Valuation date: January 1, 2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Mortality
The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the Year Ended December 31, 2015
See independent auditors' report and accompanying notes to required supplementary information.
Mortality rates were based on the L&A 2016 Illinois Firefighters Table.
2.50%
7.00%, net of pension plan investment expense,
including inflation
Entry-age
Level percentage of payroll, closed
26 years
Market Value
4.25% to 9.73%, average, including inflation
Page 101
2014 2015
Annual money-weighted rate of return,
net of investment expense 7.08%1.32%
Notes to Schedule:
See independent auditors' report and accompanying notes to required supplementary information.
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
As of December 31, 2015
The Village implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not
available.
VILLAGE OF BUFFALO GROVE
OTHER POST EMPLOYMENT BENEFITS
SCHEDULE OF EMPLOYER CONTRIBUTIONS AND SCHEDULE OF FUNDING PROGRESS
December 31, 2015
Year Ended
Annual
Required
Contribution
Percentage
Contributed
12/31/15 $604,694 58.97 %
12/31/14 300,421 72.84
12/31/13 267,125 81.92
Actuarial
Valuation
Date
Actuarial Value
of Assets
(a)
Actuarial
Accrued
Liability (AAL)
- Entry Age
(b)
Unfunded AAL
(UAAL)
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
12/31/15 $-$9,333,479 $9,333,479 0.00%$19,769,052 47.21%
12/31/13 -4,545,910 4,545,910 0.00%19,787,930 22.97%
12/31/11 -4,375,822 4,375,822 0.00%18,846,443 23.22%
Note: In the current year, the actuarial valuation had an assumption change regarding the implicit costs for retiree
coverage. The prior report estimated the implicit liability using a factor of 40% of the premium. The current year
report revised the determination method for implicit costs to calculate gross costs on an age specific basis and
compare to the blended premium to generate implicit retiree costs. The current year report also revised the
expected increases in medical costs.
See independent auditors' report and accompanying notes to required supplementary information.
Page 102
VILLAGE OF BUFFALO GROVE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015
BUDGETARY INFORMATION
The budget data included in the financial statements represent the Village's program budget and the
appropriations represent the Village's legal expenditure limit. Budgets are adopted for General, Special
Revenue, Debt Service, Capital Projects, Proprietary, Pension Trust Funds and Internal Service Funds.
All governmental fund-type budgets, pension trust fund-type budgets and internal service 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.
See independent auditors' report.
Page 103
S U P P L E M E N T A R Y I N F O R M A T I O N
VILLAGE OF BUFFALO GROVE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
As of December 31, 2015
Motor Fuel
Tax
Metra Parking
Lot Debt Service
Street
Maintenance
ASSETS
Cash $1,803,986 $67,943 $-$53,482
Receivables
Property taxes --599,063 -
Motor fuel tax 93,652 ---
Other ---358,962
TOTAL ASSETS $1,897,638 $67,943 $599,063 $412,444
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $132,079 $6,545 $-$265,286
Total Liabilities 132,079 6,545 -265,286
Deferred Inflows of Resources
Property taxes levied for a future period --599,063 -
Total Deferred Inflows of Resources --599,063 -
Fund Balances
Restricted for capital project ---147,158
Restricted for parking lot operations -61,398 --
Restricted for road construction 1,765,559 ---
Total Fund Balances 1,765,559 61,398 -147,158
TOTAL LIABILITIES,
DEFERRED INFLOWS OF
RESOURCES, AND FUND
BALANCES $1,897,638 $67,943 $599,063 $412,444
Page 104
Total
Nonmajor
Governmental
Funds
$1,925,411
599,063
93,652
358,962
$2,977,088
$403,910
403,910
599,063
599,063
147,158
61,398
1,765,559
1,974,115
$2,977,088
Page 105
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
Motor Fuel
Tax
Metra Parking
Lot Debt Service
Street
Maintenance
Total
Nonmajor
Governmental
Funds
REVENUES
Property $-$-$628,057 $-$628,057
Intergovernmental 1,014,469 ---1,014,469
Charges for services -672 --672
Fines and fees -182,657 --182,657
Total Revenues 1,014,469 183,329 628,057 -1,825,855
EXPENDITURES
Current
General government -172,853 --172,853
Capital improvement 1,781,905 ---1,781,905
Capital Outlay ---81,460 81,460
Debt Service
Principal --510,000 -510,000
Interest --296,747 -296,747
Total Expenditures 1,781,905 172,853 806,747 81,460 2,842,965
Excess (deficiency) of
revenues over expenditures (767,436)10,476 (178,690)(81,460)(1,017,110)
OTHER FINANCING
SOURCES (USES)
Transfers in 859,207 -204,176 -1,063,383
Transfers out -(12,000)--(12,000)
Total Other Financing
Sources (Uses)859,207 (12,000)204,176 -1,051,383
Net Change in Fund
Balances 91,771 (1,524)25,486 (81,460)34,273
FUND BALANCES (DEFICIT)
- Beginning of Year 1,673,788 62,922 (25,486)228,618 1,939,842
FUND BALANCES -
END OF YEAR $1,765,559 $61,398 $-$147,158 $1,974,115
Page 106
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Intergovernmental $1,000,000 $1,014,469 $14,469
Total Revenues 1,000,000 1,014,469 14,469
EXPENDITURES
Current:
Public works 1,679,205 1,781,905 (102,700)
Total Expenditures 1,679,205 1,781,905 (102,700)
Excess (deficiency) of revenues over (under)
expenditures (679,205)(767,436)(88,231)
OTHER FINANCING SOURCES (USES)
Transfers in 679,205 859,207 180,002
Total Other Financing Sources (Uses)679,205 859,207 180,002
Net Change in Fund Balance $-91,771 $91,771
FUND BALANCE - Beginning of Year 1,673,788
FUND BALANCE - END OF YEAR $1,765,559
Page 107
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - METRA PARKING LOT - NONMAJOR SPECIAL REVENUE
FUND
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Charges for services $1,100 $672 $(428)
Fines and fees 180,000 182,657 2,657
Total Revenues 181,100 183,329 2,229
EXPENDITURES
Current:
General government 152,935 172,853 (19,918)
Total Expenditures 152,935 172,853 (19,918)
Excess (deficiency) of revenues over (under)
expenditures 28,165 10,476 (17,689)
OTHER FINANCING SOURCES (USES)
Transfers out -(12,000)(12,000)
Total Other Financing Sources (Uses)-(12,000)(12,000)
Net Change in Fund Balance $28,165 (1,524)$(29,689)
FUND BALANCE - Beginning of Year 62,922
FUND BALANCE - END OF YEAR $61,398
Page 108
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE - NONMAJOR DEBT SERVICE FUND
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Property $624,813 $628,057 $3,244
Total Revenues 624,813 628,057 3,244
EXPENDITURES
Debt Service
Principal 510,000 510,000 -
Interest 297,813 296,747 1,066
Total Expenditures 807,813 806,747 1,066
Excess (deficiency) of revenues over (under)
expenditures (183,000)(178,690)4,310
OTHER FINANCING SOURCES
Transfers in 180,000 204,176 24,176
Total Other Financing Sources 180,000 204,176 24,176
Net Change in Fund Balance $(3,000)25,486 $28,486
FUND BALANCE (DEFICIT) - Beginning of Year (25,486)
FUND BALANCE (DEFICIT) - END OF YEAR $-
Page 109
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - STREET MAINTENANCE - NONMAJOR CAPITAL PROJECTS
FUND
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Total Revenues $-$-$-
EXPENDITURES
Capital Outlay 50,000 81,460 (31,460)
Total Expenditures 50,000 81,460 (31,460)
Excess (deficiency) of revenues over (under)
expenditures (50,000)(81,460)(31,460)
OTHER FINANCING SOURCES
Transfers in 50,000 -(50,000)
Total Other Financing Sources 50,000 -(50,000)
Net Change in Fund Balance $-(81,460)$(81,460)
FUND BALANCE - Beginning of Year 228,618
FUND BALANCE - END OF YEAR $147,158
Page 110
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - FACILITIES DEVELOPMENT - MAJOR CAPITAL PROJECTS
FUND
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Miscellaneous income $2,722,189 $-$(2,722,189)
Total Revenues 2,722,189 -(2,722,189)
EXPENDITURES
Capital Outlay 3,590,611 2,746,734 843,877
Total Expenditures 3,590,611 2,746,734 843,877
Excess (deficiency) of revenues over (under)
expenditures (868,422)(2,746,734)(1,878,312)
OTHER FINANCING SOURCES
Transfers in 868,422 1,337,984 469,562
Total Other Financing Sources 868,422 1,337,984 469,562
Net Change in Fund Balance $-(1,408,750)$(1,408,750)
FUND BALANCE (DEFICIT) - Beginning of Year (2,298,810)
FUND BALANCE (DEFICIT) - END OF YEAR $(3,707,560)
Page 111
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
As of December 31, 2015
Buffalo Grove
Golf
Refuse
Service
Total Nonmajor
Enterprise
Funds
ASSETS
Current Assets
Cash and equivalents $-$937,750 $937,750
Receivables
Other 35,589 160,075 195,664
Due from other funds 20,262 -20,262
Inventory 19,455 -19,455
Total Current Assets 75,306 1,097,825 1,173,131
Noncurrent Assets
Capital Assets
Land 978,776 -978,776
Land improvements 450,437 -450,437
Buildings and improvements 1,862,837 -1,862,837
Machinery, equipment and furnishings 94,510 -94,510
Less: Accumulated depreciation (2,257,597)-(2,257,597)
Total Noncurrent Assets 1,128,963 -1,128,963
Total Assets 1,204,269 1,097,825 2,302,094
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 107,462 -107,462
Total Deferred Outflows of Resources 107,462 -107,462
LIABILITIES
Current Liabilities
Accounts payable 48,651 -48,651
Accrued wages 3,013 -3,013
Due to other funds 4,000 -4,000
Other 11,332 -11,332
Compensated absences 3,945 -3,945
Total Current Liabilities 70,941 -70,941
Noncurrent Liabilities
Long-Term Debt
Compensated absences 55,404 -55,404
Net pension liability 213,821 -213,821
Total Noncurrent Liabilities 269,225 -269,225
Total Liabilities 340,166 -340,166
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 32,654 -32,654
Total Deferred Inflows of Resources 32,654 -32,654
NET POSITION
Net investment in capital assets 1,128,963 -1,128,963
Unrestricted (deficit)(190,052)1,097,825 907,773
TOTAL NET POSITION $938,911 $1,097,825 $2,036,736
Page 112
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2015
Buffalo Grove
Golf
Refuse
Service
Total Nonmajor
Enterprise
Funds
OPERATING REVENUES
Daily greens fee and memberships $723,398 $-$723,398
Merchandise sales 70,320 -70,320
Cart, club, and other rentals 222,306 -222,306
Driving range fees 62,116 -62,116
SW ANCC user fees -1,039,876 1,039,876
Miscellaneous 19,698 -19,698
Total Operating Revenues 1,097,838 1,039,876 2,137,714
OPERATING EXPENSES
Golf operations 1,286,038 -1,286,038
Cost of sales - pro shop 49,406 -49,406
Refuse operations -702,106 702,106
Depreciation 32,784 -32,784
Total Operating Expenses 1,368,228 702,106 2,070,334
Operating Income (Loss)(270,390)337,770 67,380
TRANSFERS
Transfers in 218,105 -218,105
Transfers out (54,100)(75,000)(129,100)
Total Transfers 164,005 (75,000)89,005
Change in Net Position (106,385)262,770 156,385
NET POSITION - Beginning of Year (as restated)1,045,296 835,055 1,880,351
NET POSITION - END OF YEAR $938,911 $1,097,825 $2,036,736
Page 113
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CASH FLOW S
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2015
Buffalo Grove
Golf
Refuse
Service Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers $1,115,564 $966,400 $2,081,964
Paid to suppliers for goods and services (830,539)(702,106)(1,532,645)
Paid to employees for services (428,768)-(428,768)
Net Cash Flows From Operating Activities (143,743)264,294 120,551
CASH FLOWS FROM NONCAPITAL FINANCING
AC TIVITIES
Transfers in 197,843 -197,843
Transfers (out)(54,100)(75,000)(129,100)
Net Cash Flows From Noncapital Financing Activities 143,743 (75,000)68,743
Net Change in Cash and Cash Equivalents -189,294 189,294
CASH AND CASH EQUIVALENTS - Beginning of Year -748,456 748,456
CASH AND CASH EQUIVALENTS - END OF YEAR $-$937,750 $937,750
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)$(270,390)$337,770 $67,380
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Flows From Operating Activities
Depreciation 32,784 -32,784
Changes in assets and liabilities
Inventory 1,480 -1,480
Accounts payable 21,589 -21,589
Accrued wages (17,466)-(17,466)
Accounts receivable 17,726 (73,476)(55,750)
Compensated absences 6,100 -6,100
Deferred outflows - pensions (49,193)-(49,193)
Deferred inflows - pensions 32,654 -32,654
Net pension liability 80,973 -80,973
NET CASH FLOWS FROM OPERATING
AC TIVITIES $(143,743)$264,294 $120,551
NONCASH CAPITAL AND RELATED FINANCING
AC TIVITIES
None
Page 114
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
BUFFALO GROVE GOLF - NONMAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Daily greens fee and memberships $729,000 $723,398 $5,602
Merchandise sales 62,130 70,320 (8,190)
Cart, club, and other rentals 237,300 222,306 14,994
Driving range fees 61,500 62,116 (616)
Miscellaneous 15,500 19,698 (4,198)
Total Operating Revenues 1,105,430 1,097,838 7,592
OPERATING EXPENSES
Golf operations 1,219,596 1,286,038 (66,442)
Cost of sales - pro shop 45,000 49,406 (4,406)
Total Operating Expenses 1,264,596 1,335,444 (70,848)
Operating Income (Loss) - Non-GAAP Budgetary
Basis (159,166)(237,606)78,440
TRANSFERS
Transfers in 159,166 218,105 (58,939)
Transfers out -(54,100)54,100
Net Transfers 159,166 164,005 (4,839)
Change in net position - Non-GAAP Budgetary
Basis $-$(73,601)$73,601
Page 115
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
REFUSE SERVICE - NONMAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
SW ANCC user fees $1,025,000 $1,039,876 $(14,876)
Total Operating Revenues 1,025,000 1,039,876 (14,876)
OPERATING EXPENSES
Refuse operations 890,000 702,106 187,894
Total Operating Expenses 890,000 702,106 187,894
Operating Income - Non-GAAP Budgetary Basis 135,000 337,770 (202,770)
TRANSFERS
Transfers out (75,000)(75,000)-
Net Transfers (75,000)(75,000)-
Change in net position - Non-GAAP Budgetary
Basis $60,000 $262,770 $(202,770)
Page 116
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
WATER AND SEW ERAGE - MAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Water and sewer charges $10,437,253 $9,401,310 $1,035,943
Connection and recapture fees 26,750 94,381 (67,631)
Miscellaneous 6,000,000 5,737 5,994,263
Total Operating Revenues 16,464,003 9,501,428 6,962,575
OPERATING EXPENSES
Water operations 10,999,672 1,857,580 9,142,092
Sewer operations 5,290,847 3,824,799 1,466,048
Water purchases 1,800,000 1,671,152 128,848
Add: Capital assets capitalized -5,325,303 (5,325,303)
Total Operating Expenses 18,090,519 12,678,834 5,411,685
Operating Income (Loss) - Non-GAAP Budgetary
Basis (1,626,516)(3,177,406)1,550,890
NON-OPERATING REVENUES
Interest 10,250 10,112 138
Total Non-Operating Revenues 10,250 10,112 138
Net Income (Loss) Before Transfers - Non-
GAAP Budgetary Basis (1,616,266)(3,167,294)1,551,028
TRANSFERS
Transfers out (945,000)(1,038,044)93,044
Net Transfers (945,000)(1,038,044)93,044
Change in net position - Non-GAAP Budgetary
Basis $(2,561,266)$(4,205,338)$1,644,072
Page 117
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL -
NON-GAAP BUDGETARY BASIS
ARBORETUM GOLF - MAJOR ENTERPRISE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Daily greens fee and memberships $813,000 $819,935 $(6,935)
Merchandise sales 54,000 58,073 (4,073)
Cart, club, and other rentals 248,800 252,957 (4,157)
Miscellaneous 58,100 107,125 (49,025)
Total Operating Revenues 1,173,900 1,238,090 64,190
OPERATING EXPENSES
Golf operations 1,321,050 1,384,020 (62,970)
Cost of sales - pro shop 40,000 47,978 (7,978)
Total Operating Expenses 1,361,050 1,431,998 (70,948)
Operating (Loss) - Non-GAAP Budgetary Basis (187,150)(193,908)6,758
TRANSFERS
Transfers in 187,150 234,840 (47,690)
Transfers out -(34,828)34,828
Net Transfers 187,150 200,012 (12,862)
Change in net position - Non-GAAP Budgetary
Basis $-$6,104 $(6,104)
Page 118
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
As of December 31, 2015
Information
Technology
Central
Garage
Building
Maintenance Totals
ASSETS
Current Assets
Cash $76,741 $42,473 $20,100 $139,314
Receivables
Total Current Assets 76,741 42,473 20,100 139,314
Total Assets 76,741 42,473 20,100 139,314
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions -198,317 135,562 333,879
Total Deferred Outflows of Resources -198,317 135,562 333,879
LIABILITIES
Current Liabilities
Accounts payable 76,741 33,233 13,381 123,355
Accrued wages -9,240 6,719 15,959
Total Current Liabilities 76,741 42,473 20,100 139,314
Noncurrent Liabilities
Net pension liability -394,597 269,732 664,329
Total Noncurrent Liabilities -394,597 269,732 664,329
Total Liabilities 76,741 437,070 289,832 803,643
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions -60,261 41,192 101,453
NET POSITION
Unrestricted -(256,541)(175,362)(431,903)
TOTAL NET POSITION $-$(256,541)$(175,362)$(431,903)
Page 119
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Information
Technology
Central
Garage
Building
Maintenance Totals
OPERATING REVENUES
Internal service contributions $957,961 $1,528,484 $1,392,642 $3,879,087
Total Operating Revenues 957,961 1,528,484 1,392,642 3,879,087
OPERATING EXPENSES
Information technology 925,742 --925,742
Central garage -1,749,950 -1,749,950
Building maintenance --1,548,877 1,548,877
Total Operating Expenses 925,742 1,749,950 1,548,877 4,224,569
Operating Income (Loss)32,219 (221,466)(156,235)(345,482)
Income (Loss) Before Transfers 32,219 (221,466)(156,235)(345,482)
TRANSFERS
Transfers out (32,219)(35,075)(19,127)(86,421)
Total Transfers (32,219)(35,075)(19,127)(86,421)
Change in net position -(256,541)(175,362)(431,903)
NET POSITION - Beginning of Year ----
NET POSITION - END OF YEAR $-$(256,541)$(175,362)$(431,903)
Page 120
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL
INFORMATION TECHNOLOGY - INTERNAL SERVICE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Internal service contributions $1,101,570 $957,961 $143,609
Total Operating Revenues 1,101,570 957,961 143,609
OPERATING EXPENSES
Information technology 1,101,570 925,742 175,828
Total Operating Expenses 1,101,570 925,742 175,828
Operating Income -32,219 (32,219)
TRANSFERS
Transfers out -(32,219)32,219
Total Transfers -(32,219)32,219
Change in net position $-$-$-
Page 121
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL
CENTRAL GARAGE - INTERNAL SERVICE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Internal service contributions $2,365,390 $1,528,484 $836,906
Total Operating Revenues 2,365,390 1,528,484 836,906
OPERATING EXPENSES
Central garage 2,365,390 1,749,950 615,440
Total Operating Expenses 2,365,390 1,749,950 615,440
Operating Income -(221,466)221,466
TRANSFERS
Transfers out -(35,075)35,075
Total Transfers -(35,075)35,075
Change in net position $-$(256,541)$256,541
Page 122
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - BUDGET AND ACTUAL
BUILDING MAINTENANCE - INTERNAL SERVICE FUND
For the Year Ended December 31, 2015
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Internal service contributions $2,042,347 $1,392,642 $649,705
Total Operating Revenues 2,042,347 1,392,642 649,705
OPERATING EXPENSES
Building maintenance 2,042,347 1,548,877 493,470
Total Operating Expenses 2,042,347 1,548,877 493,470
Operating Income -(156,235)156,235
TRANSFERS
Transfers out -(19,127)19,127
Total Transfers -(19,127)19,127
Change in net position $-$(175,362)$175,362
Page 123
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CASH FLOW S
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Information
Technology
Central
Garage
Building
Maintenance Totals
CASH FLOWS FROM OPERATING
AC TIVITIES
Received from interfund charges $957,961 $1,528,484 $1,392,642 $3,879,087
Paid to suppliers for goods and services (849,001)(931,326)(991,098)(2,771,425)
Paid to employees for services -(519,610)(362,317)(881,927)
Net Cash Flows From Operating
Activities 108,960 77,548 39,227 225,735
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers (out)(32,219)(35,075)(19,127)(86,421)
Net Cash Flows From Noncapital
Financing Activities (32,219)(35,075)(19,127)(86,421)
Net Change in Cash and Cash
Equivalents 76,741 42,473 20,100 139,314
CASH AND CASH EQUIVALENTS - Beginning
of Year ----
CASH AND CASH EQUIVALENTS - END
OF YEAR $76,741 $42,473 $20,100 $139,314
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss)$32,219 $(221,466)$(156,235)$(345,482)
Changes in assets and liabilities
Accounts payable 76,741 33,233 13,381 123,355
Accrued wages -9,240 6,719 15,959
Deferred outflows - pensions -(198,317)(135,562)(333,879)
Deferred inflows - pensions -60,261 41,192 101,453
Net pension liability -394,597 269,732 664,329
NET CASH FLOWS FROM
OPERATING ACTIVITIES $108,960 $77,548 $39,227 $225,735
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
Page 124
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
As of December 31, 2015
Police Pension
Firefighters'
Pension Totals
ASSETS
Cash $4,099,718 $484,844 $4,584,562
Investments
U.S. treasuries 8,022,404 3,213,104 11,235,508
U.S. agencies 3,767,589 15,401,017 19,168,606
Mutual funds - other than bond funds 5,334,653 27,925,070 33,259,723
Equity securities 26,445,824 -26,445,824
Municipal bonds -3,203,140 3,203,140
Corporate bonds 8,783,622 -8,783,622
Receivables
Interest 49,521 133,258 182,779
Prepaid items 3,297 2,081 5,378
Due from primary government 15,821 20,345 36,166
Total Assets 56,522,449 50,382,859 106,905,308
LIABILITIES
Accounts payable 52,868 34,388 87,256
Due to primary government 84,629 307 84,936
Total Liabilities 137,497 34,695 172,192
NET POSITION
Held in trust for pension benefits $56,384,952 $50,348,164 $106,733,116
Page 125
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended December 31, 2015
Police Pension
Firefighters'
Pension Total
AD DITIONS
Contributions
Employer $2,284,315 $2,202,138 $4,486,453
Plan members 669,077 524,714 1,193,791
Total Contributions 2,953,392 2,726,852 5,680,244
Investment income
Interest 510,436 569,857 1,080,293
Net appreciation in fair value of investments (141,113)209,298 68,185
Total Investment Income 369,323 779,155 1,148,478
Less Investment expense 182,688 124,530 307,218
Net Investment Income 186,635 654,625 841,260
Total Additions 3,140,027 3,381,477 6,521,504
DEDUCTIONS
Pension benefits and refunds 2,969,657 2,141,668 5,111,325
Administration 39,870 48,363 88,233
Total Deductions 3,009,527 2,190,031 5,199,558
Change in Net Position 130,500 1,191,446 1,321,946
NET POSITION - Beginning of Year 56,254,452 49,156,718 105,411,170
NET POSITION, END OF YEAR $56,384,952 $50,348,164 $106,733,116
Page 126
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $2,256,676 $2,284,315 $(27,639)
Plan members 641,947 669,077 (27,130)
Total contributions 2,898,623 2,953,392 (54,769)
Investment Income
Interest 411,519 510,436 (98,917)
Net appreciation in fair value of investments 3,300,644 (141,113)3,441,757
Total investment income 3,712,163 369,323 3,342,840
Less Investment expense 165,000 182,688 (17,688)
Net investment income 3,547,163 186,635 3,360,528
Total additions 6,445,786 3,140,027 3,305,759
Deductions
Pension benefits and refunds 2,885,627 2,969,657 (84,030)
Administration 40,000 39,870 130
Total deductions 2,925,627 3,009,527 (83,900)
Change in net position $3,520,159 130,500 $3,389,659
Net position, beginning of year 56,254,452
Net position, end of year $56,384,952
Page 127
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS' PENSION FUND
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Original and
Final Budget Actual
Variance and
Final Budget
Additions
Contributions
Employer $2,174,632 $2,202,138 $(27,506)
Plan members 545,000 524,714 20,286
Total contributions 2,719,632 2,726,852 (7,220)
Investment Income
Interest 430,249 569,857 (139,608)
Net appreciation in fair value of investments 3,382,458 209,298 3,173,160
Total investment income 3,812,707 779,155 3,033,552
Less Investment expense 52,000 124,530 (72,530)
Net investment income 3,760,707 654,625 3,106,082
Total additions 6,480,339 3,381,477 3,098,862
Deductions
Pension benefits and refunds 2,081,491 2,141,668 (60,177)
Administration 70,000 48,363 21,637
Total deductions 2,151,491 2,190,031 (38,540)
Change in net position $4,328,848 1,191,446 $3,137,402
Net position, beginning of year 49,156,718
Net position, end of year $50,348,164
Page 128
VILLAGE OF BUFFALO GROVE
AGENCY FUND
SCHOOL AND PARK DONATIONS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended December 31, 2015
Balances Balances
January 1 Additions Deletions December 31
Assets
Cash & Cash Equivalents 408,569$ 172,009$ 54,821$ 525,757$
Liabilities
Due to Other Governments 408,569$ 172,009$ 54,821$ 525,757$
Page 129
Statistical Section
Contents Page
Financial Trends 130 - 139
Revenue Capacity 140 - 150
Debt Capacity 151 - 155
Demographic and Economic Information 156 - 159
Operating Information 160 - 163
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 financial statements, note disclosures, and
required supplementary information says about the Village's overall economic condition.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
These schedules contain trend information to help the reader understand how the Village's
financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the factors affecting the
Village's ability to generate its property and sales taxes.
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.
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place and to help make
comparisons over time and other governments.
These schedules contain information about the Village's operations and resources to help the
reader understand how the Village's financial information relates to the services the Village
provides and the activities it performs.
Page 130
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
Fiscal Years 2015 2014 2013 2012**
Governmental Activities
Net Investment in Capital Assets 50,609,420$ 50,712,982$ 51,011,919$ 52,096,183$
Restricted 1,974,115 2,664,110 2,412,222 6,268,039
Unrestricted (34,637,401) 11,048,700 12,387,400 11,550,011
Total Governmental Activities Net Position 17,946,134$ 64,425,792$ 65,811,541$ 69,914,233$
Business-type Activities
Net Investment in Capital Assets 38,372,943$ 35,871,503$ 35,553,648$ 36,706,161$
Unrestricted 7,770,059 11,067,173 11,515,793 11,242,301
Total Business-type Activities Net Position 46,143,002$ 46,938,676$ 47,069,441$ 47,948,462$
Primary Government
Net Investment in Capital Assets 88,982,363$ 86,584,485$ 86,565,567$ 88,802,344$
Restricted 1,974,115 2,664,110 2,412,222 6,268,039
Unrestricted (26,867,342) 22,115,873 23,903,193 22,792,312
Total Primary Government Net Position 64,089,136$ 111,364,468$ 112,880,982$ 117,862,695$
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
***Beginning in 2015, the Village implemented GASB 68 which resulted in the inclusion
of a net pension liability.
Data Source
Audited Financial Statements
Page 131
2011 2010 2009 2008 2007*2007
53,362,147$ 53,742,519$ 54,563,385$ 53,551,265$ 53,702,484$ 53,726,929$
1,918,263 956,803 140,712 80,438 33,167 1,294,897
13,429,876 15,738,272 16,590,052 23,259,339 27,184,985 35,512,486
68,710,286$ 70,437,594$ 71,294,149$ 76,891,042$ 80,920,636$ 90,534,312$
37,807,146$ 38,410,966$ 39,808,889$ 41,374,269$ 42,667,740$ 42,667,526$
12,989,124 14,644,341 15,011,209 17,003,316 17,509,194 18,553,703
50,796,270$ 53,055,307$ 54,820,098$ 58,377,585$ 60,176,934$ 61,221,229$
91,169,293$ 92,153,485$ 94,372,274$ 94,925,534$ 96,370,224$ 96,394,455$
1,918,263 956,803 140,712 80,438 33,167 1,294,897
26,419,000 30,382,613 31,601,261 40,262,655 44,694,179 54,066,189
119,506,556$ 123,492,901$ 126,114,247$ 135,268,627$ 141,097,570$ 151,755,541$
Page 132
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Net Position
Last Ten Fiscal Years
Fiscal Years 2015 2014 2013 2012**
Expenses
Governmental Activities
General Government 5,885,811$ 5,843,623$ 6,567,545$ 6,101,008$
Public Safety 27,256,737 22,920,180 21,964,989 22,344,117
Public Works 10,901,771 13,553,093 15,091,414 12,026,911
Building and Grounds 649,835 - - -
Interest 285,863 302,781 374,511 384,180
Total Governmental Activities Expenses 44,980,017$ 42,619,677$ 43,998,459$ 40,856,216$
Business-type Activities
Water & Sewer 8,561,248 8,435,463 8,079,364 8,931,336
Refuse Service 702,106 803,039 902,811 874,366
Golf Courses 3,288,882 2,739,077 2,942,747 2,991,170
Total Business-type Activities Expenditures 12,552,236 11,977,579 11,924,922 12,796,872
Total Primary Government Expenses 57,532,253$ 54,597,256$ 55,923,381$ 53,653,088$
Program Revenue
Governmental Activities
Charges for Services
General Government 1,624,134$ 1,901,996$ 1,207,504$ 1,226,552$
Public Safety 1,745,580 1,623,171 1,498,819 1,283,956
Public Works 61,194 88,665 82,393 118,547
Operating Grants and Contributions 1,229,028 1,285,396 1,161,509 1,178,442
Total Governmental Activities Program
Revenues 4,659,936 4,899,228 3,950,225 3,807,497
Business-type activities
Charges for Services
Water & Sewer 9,495,691 9,076,261 8,692,812 7,464,870
Refuse Service 1,039,876 1,044,442 1,040,878 1,050,386
Golf Courses 2,335,928 2,257,494 1,178,368 2,221,714
Operating Grants and Contributions - - 1,072,499 -
Capital Grants and Contributions - - - -
Total Business-type Activities Program
Revenues 12,871,495 12,378,197 11,984,557 10,736,970
Total Primary Government Revenues 17,531,431$ 17,277,425$ 15,934,782$ 14,544,467$
Net (Expense) Revenue
Governmental Activities (40,320,081)$ (37,720,449)$ (40,048,234)$ (37,048,719)$
Business-type Activities 319,259 400,618 59,635 (2,059,902)
Total Primary Government Net Expense (40,000,822)$ (37,319,831)$ (39,988,599)$ (39,108,621)$
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
Page 133
2011 2010 2009 2008 2007*2007
5,010,274$ 4,769,874$ 6,182,475$ 5,705,497$ 4,019,032$ 4,686,330$
22,657,643 22,312,910 22,753,590 21,115,737 15,324,061 18,951,546
11,106,433 11,081,374 10,421,659 13,222,026 8,232,685 12,479,424
- - - - - -
248,539 194,655 334,142 379,501 216,379 529,858
39,022,889$ 38,358,813$ 39,691,866$ 40,422,761$ 27,792,157$ 36,647,158$
8,753,149 9,865,981 9,519,169 8,684,651 5,165,701 7,256,639
935,365 942,757 944,392 1,017,164 777,716 1,024,248
3,057,912 3,043,367 3,118,647 3,423,903 2,637,072 3,102,770
12,746,426 13,852,105 13,582,208 13,125,718 8,580,489 11,383,657
51,769,315$ 52,210,918$ 53,274,074$ 53,548,479$ 36,372,646$ 48,030,815$
1,240,547$ 1,195,928$ 977,464$ 1,211,188$ 1,139,242$ 1,880,714$
1,404,308 1,419,761 1,563,236 1,514,666 1,050,920 1,525,943
86,421 71,606 50,709 94,670 94,670 -
1,230,387 1,253,103 1,349,044 1,307,895 950,383 1,532,557
3,961,663 3,940,398 3,940,453 4,128,419 3,235,215 4,939,214
7,782,000 9,091,520 8,008,360 7,538,534 4,799,193 6,694,051
1,036,872 1,041,661 1,004,431 923,207 704,841 991,140
2,175,418 2,088,106 2,320,247 2,356,962 2,141,860 2,323,919
- - - - - -
- - - 133,599 497,875 450,000
10,994,290 12,221,287 11,333,038 10,952,302 8,143,769 10,459,110
14,955,953$ 16,161,685$ 15,273,491$ 15,080,721$ 11,378,984$ 15,398,324$
(35,061,226)$ (34,418,415)$ (35,751,413)$ (36,294,342)$ (24,556,942)$ (31,707,944)$
(1,752,136) (1,630,818) (2,249,170) (2,173,416) (436,720) (924,547)
(36,813,362)$ (36,049,233)$ (38,000,583)$ (38,467,758)$ (24,993,662)$ (32,632,491)$
Page 134
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Net Position (Cont.)
Last Ten Fiscal Years
Fiscal Years 2015 2014 2013 2012
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property 14,742,622$ 14,554,564$ 14,504,750$ 14,330,407$
Sales and Home Rule 9,274,777 8,455,972 7,803,749 7,570,915
Income and Use 5,409,875 4,104,736 4,737,656 5,462,111
Telecommunications 1,644,309 1,679,653 1,943,811 2,200,809
Utility 2,643,642 2,819,427 2,629,997 2,510,242
Property Transfer 904,311 790,819 760,164 459,036
Other 1,092,554 1,113,831 1,052,788 1,070,409
Investment Earnings 25,061 107,765 54,522 132,436
Miscellaneous 1,458,118 1,636,721 1,506,994 1,239,906
Transfers 749,027 1,070,724 951,111 635,500
Gain on sale of assets 1,601 488 - -
Total Government Activities 37,945,897 36,334,700 35,945,542 35,611,771
Business-type Activities
Property - - -
Investment Earnings 10,112$ 18,820 12,455 27,087
Miscellaneous 5,737 520,521 - 1,259
Transfers (749,027) (1,070,724) (951,111) (635,500)
Total Business-type Activities (733,178) (531,383) (938,656) (607,154)
Total Primary Government 37,212,719$ 35,803,317$ 35,006,886$ 35,004,617$
Change in Net Position
Governmental Activities (2,374,184)$ (1,385,749)$ (4,102,692)$ (1,436,948)$
Business-type Activities (413,919) (130,765) (879,021) (2,667,056)
Total Primary Government Change
in Net Position (2,788,103)$ (1,516,514)$ (4,981,713)$ (4,104,004)$
Data Source
Audited Financial Statements
Page 135
2011 2010 2009 2008 2007*2007
14,458,248$ 13,657,589$ 12,504,508$ 12,058,815$ 706,749$ 10,214,926$
6,984,134 7,309,800 7,196,969 8,436,647 5,741,981 8,619,267
3,714,864 4,165,248 3,601,619 4,646,776 2,725,204 4,280,237
2,134,462 2,183,190 2,345,249 2,417,496 1,967,348 2,436,233
2,567,091 2,393,340 - - - -
629,376 545,515 670,762 590,596 600,379 980,213
1,044,164 1,017,612 1,006,249 1,076,929 247,827 273,335
133,059 250,290 490,881 810,982 958,715 1,636,589
1,495,155 1,822,276 1,403,283 2,081,112 1,254,948 855,100
553,000 217,000 935,000 80,230 899,950 544,950
- - - - - -
33,713,553 33,561,860 30,154,520 32,199,583 15,103,101 29,840,850
- - - - - 166,007
41,100 (46,666) (374,632) 267,263 292,375 445,766
4,999 2,133 1,315 187,034 - 131,982
(553,000) (217) (935,000) (80,230) (899,950) (544,950)
(506,901) (44,750) (1,308,317) 374,067 (607,575) 198,805
33,206,652$ 33,517,110$ 28,846,203$ 32,573,650$ 14,495,526$ 30,039,655$
(1,347,673)$ (856,555)$ (5,596,893)$ (4,094,759)$ (9,453,841)$ (1,867,094)$
(2,259,037) (1,675,568) (3,557,487) (1,799,349) (1,044,295) (725,742)
(3,606,710)$ (2,532,123)$ (9,154,380)$ (5,894,108)$ (10,498,136)$ (2,592,836)$
Page 136
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2015 2014 2013 2012**
General Fund
Nonspendable 551,242$ 573,812$ 562,399$ 518,437$
Restricted 223,622 130,435 162,274 -
Committed 7,532,123 7,438,256 7,345,420 7,335,685
Unassigned 14,991,907 13,225,644 12,395,113 10,759,935
Reserved - - - -
Unreserved - - - -
Total General Fund 23,298,894 21,368,147 20,465,206 18,614,057
All other Governmental Funds
Restricted 1,974,115 1,965,328 1,796,997 6,112,703
Assigned - - 101,213 144,075
Unassigned (3,707,560) (2,324,296) (927,395) (253,826)
Unreserved - - - -
Unreserved, Reported in
Special Revenue Funds - - - -
Capital Projects Funds - - - -
Total All other Governmental Funds (1,733,445) (358,968) 970,815 6,002,952
Total Governmental Funds 21,565,449$ 21,009,179$ 21,436,021$ 24,617,009$
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
Data Source
Audited Financial Statements
Page 137
2011 2010 2009 2008 2007*2007
1,031,936$ -$ -$ -$ -$ -$
- - - - - -
7,948,344 - - - - -
9,871,895 - - - - -
- 1,138,273 1,248,428 1,536,571 1,846,137 1,846,137
- 17,763,849 18,307,270 22,444,819 27,556,199 27,556,199
18,852,175 18,902,122 19,555,698 23,981,390 29,402,336 29,402,336
1,918,263 - - - - -
146,116 - - - - -
(234,206) - - - - -
- 20,271 (12,970) 33,167 486,946 486,946
- 2,124,937 1,252,015 1,239,501 1,942,258 1,942,258
- 927,626 903,315 1,911,178 2,436,815 2,436,815
1,830,173 3,072,834 2,142,360 3,183,846 4,866,019 4,866,019
20,682,348$ 21,974,956$ 21,698,058$ 27,165,236$ 34,268,355$ 34,268,355$
Page 138
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2015 2014***2013 2012**
Revenues
Property Taxes 14,742,622$ 14,554,564$ 14,504,750$ 14,330,407$
Other Taxes 9,712,718 9,564,978 19,240,365 18,325,614
Licenses and Permits 1,330,769 207,312 294,622 275,434
Intergovernmental 1,931,512 11,081,081 997,371 1,011,949
Fines and Forfeitures 350,042 1,803,317 1,647,364 1,283,956
Charges for Services 12,271,219 1,371,779 1,010,868 1,236,158
Investment Income 25,061 107,765 54,522 132,457
Miscellaneous 1,404,841 2,107,628 1,506,994 1,239,861
Total Revenue 41,768,784 40,798,424 39,256,856 37,835,836
Expenditure
Current
General Government 5,084,772$ 5,522,549 6,465,636 5,556,101
Public Safety 25,237,115 22,773,535 21,805,910 21,791,218
Public Works 8,092,735 10,878,278 12,178,705 9,865,723
Capital Outlay 2,828,194 2,018,451 1,347,276 1,561,904
Debt Service
Principal 510,000 790,000 940,000 920,000
Interest 296,747 313,665 385,395 285,420
Other Charges - - - -
Total Expenditures 42,049,563 42,296,478 43,122,922 39,980,366
Excess (Deficiency) of Revenues
over Expenditures (280,779) (1,498,054) (3,866,066) (2,144,530)
Other Financing Sources (Uses)
Transfers In 3,521,760$ 2,552,288 2,119,313 2,621,132
Transfers Out (2,686,312) (1,481,564) (1,434,235) (1,985,632)
Sales of fixed assets 1,601 488
Auction Proceeds - - - 45
Bond Issued - - - 6,000,000
Premium on Issuance of Debt - - - 91,669
Transfer to Escrow Agent - - - -
Total Other Financing Sources (Uses)837,049 1,071,212 685,078 6,727,214
Net Change in Fund Balance 556,270$ (426,842) (3,180,988) 4,582,684
Debt Service
as a Percentage of Non-Capital Expenditures 2.06%2.68%3.17%3.14%
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
*** Beginning in 2014, state shared revenues have been recorded as intergovernmental revenues.
Page 139
2011 2010 2009 2008 2007*2007
14,458,248$ 13,657,589$ 12,504,508$ 12,058,815$ 5,797,846$ 10,402,764$
17,074,091 17,614,705 14,806,744 17,168,444 11,282,739 16,589,285
280,139 278,164 276,857 278,965 245,148 825,691
1,060,719 1,096,794 1,106,234 1,134,407 815,669 1,253,319
1,404,308 1,419,761 1,559,190 1,514,666 1,050,918 1,525,943
1,216,497 1,145,679 970,537 1,200,381 1,028,810 1,334,260
133,196 249,396 490,881 790,244 911,444 1,562,291
1,442,617 1,720,640 1,444,610 2,081,112 1,254,948 855,101
37,069,815 37,182,728 33,159,561 36,227,034 22,387,522 34,348,654
5,509,433 4,979,904 5,596,822 5,458,962 3,455,213 4,955,659
22,008,351 21,802,732 20,882,745 20,499,004 14,211,380 18,185,545
8,256,079 8,704,005 10,337,090 10,792,931 7,225,387 9,319,231
1,510,924 3,157,156 1,245,940 1,286,175 502,701 1,945,053
1,055,000 980,000 1,165,000 1,150,000 1,312,381 1,234,765
248,539 194,655 334,142 379,501 424,220 476,736
- 127,930 - - - -
38,588,326 39,946,382 39,561,739 39,566,573 27,131,282 36,116,989
(1,518,511) (2,763,654) (6,402,178) (3,339,539) (4,743,760) (1,768,335)
1,891,354 2,153,190 2,909,382 4,121,451 3,064,166 3,453,845
(1,338,354) (1,936,190) (1,974,382) (4,041,221) (2,164,216) (2,658,895)
52,538 103,565 - - - -
- 7,760,000 - - - -
- 178,229 - - - -
- (5,218,242) - - - -
605,538 3,040,552 935,000 80,230 899,950 794,950
(912,973) 276,898 (5,467,178) (3,259,309) (3,843,810) (973,385)
3.52%3.19%3.91%4.00%6.52%5.01%
Page 140
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Tax Levy Residential Commercial Industrial Other
Year Property Property Property Property
2015 *1,191,523,466$ *297,951,249$ *3,377,285$ *631,771$
2014 1,120,788,463 294,457,084 9,119,150 696,091
2013 1,115,221,955 292,225,583 9,050,042 618,433
2012 1,223,424,081 296,910,564 10,221,534 617,198
2011 1,338,206,375 315,118,343 10,706,904 832,216
2010 1,435,137,071 325,603,742 12,723,472 636,502
2009 1,535,445,605 346,125,532 14,583,031 628,346
2008 1,510,235,133 353,063,176 17,166,096 630,017
2007 1,454,038,913 339,683,354 16,474,758 624,450
*Cook County property class and assessed valuation is an estimate. Cook County information not
yet available.
Note: Total Direct Tax Rate is weighted for both Cook and Lake Counties
Data Source
Office of Cook County Clerk
Office of Lake County Clerks
Page 141
Estimated Estimated
Total Assessed Total Direct Actual Taxable Actual Taxable
Value Tax Rate Value Value (%)
1,493,483,771$ *1.0110 *4,480,451,313$ *33.333%
1,425,060,788 1.0411 4,275,182,364 33.333%
1,417,116,013 1.0280 4,251,348,039 33.333%
1,531,173,377 0.9187 4,593,520,131 33.333%
1,664,431,364 0.8594 4,993,294,092 33.333%
1,774,100,787 0.7999 5,322,302,361 33.333%
1,896,782,514 0.7359 5,690,347,542 33.333%
1,881,094,422 0.6661 5,643,283,266 33.333%
1,810,821,475 0.6668 5,432,464,425 33.333%
Page 142
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 2015 2014 2013 2012 2011
Lake County
Village of Buffalo Grove 0.955 0.993 0.983 0.929 0.852
County, including Forest Preserve 0.871 0.893 0.881 0.820 0.755
Combined School Districts (102, 125, 532)7.034 7.164 7.068 6.779 6.158
Buffalo Grove Park District 0.517 0.553 0.537 0.511 0.452
Vernon Area Public Library 0.308 0.317 0.311 0.441 0.385
All Other (3)0.110 0.113 0.105 0.106 0.092
Total (4)9.794 10.033 9.885 9.586 8.694
-2.38%1.50%3.12%10.26%9.33%
Cook County
Village of Buffalo Grove N/A N/A N/A 1.030 0.886
County, including Forest Preserve N/A N/A N/A 0.594 0.520
Metropolitan Water Reclamation District
of Greater Chicago N/A N/A N/A 0.370 0.320
Combined School Districts (21, 214, 512)N/A N/A N/A 6.917 6.565
Buffalo Grove Park District N/A N/A N/A 0.557 0.479
Indian Trails Public Library District N/A N/A N/A 0.463 0.393
All Other (3)N/A N/A N/A 0.187 0.107
Total (5)N/A N/A N/A 10.118 9.270
Percentage Change Year -to-Year N/A N/A N/A 9.15%12.95%
Notes:
(1) Taxes Levied on a calendar year basis for collection in the subsequent year.
(2) The Village is a home rule unit under the 1970 Illinois State Constitution and, as such, has no statutory
tax rate limitations.
(3) Includes Road and Bridge and General Assistance for the Township herein.
(4) Representative tax rates for other government units are from Vernon Township Tax Code 16- 92, which
represents the largest portion of the Village's 2013 EAV.
(5) Representative tax rates for other government units are from Cook County Tax Code 38077, which
represents the largest portion of the Village's 2012 EAV within Cook County.
N/A - Not Yet Available
Data Source
Cook County Tax Extension
Lake County Tax Extension
Page 143
2010 2009 2008 2007 2006
0.797 0.750 0.665 0.649 0.633
0.703 0.664 0.652 0.645 0.654
5.610 5.301 5.102 5.066 5.318
0.425 0.351 0.370 0.380 0.403
0.315 0.301 0.222 0.219 0.317
0.102 0.094 0.092 0.092 0.094
7.952 7.461 7.103 7.051 7.419
6.58%5.04%0.74%-4.96%3.08%
0.810 0.691 0.670 0.729 0.731
0.474 0.464 0.466 0.499 0.557
0.274 0.261 0.252 0.263 0.284
5.792 5.103 5.004 5.035 5.613
0.439 0.371 0.376 0.416 0.455
0.347 0.307 0.308 0.297 0.320
0.071 0.068 0.067 0.079 0.080
8.207 7.265 7.143 7.318 8.040
12.97%1.71%-2.39%-8.98%1.71%
Page 144
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
2015
Percentage
of Total
Village
Equalized Taxable
Assessed Assessed
Taxpayer Valuation Rank Valuation
Chevy Chase Business Park Ltd 26,362,226$ 1 1.77%
Hamilton Partners(1)8,949,806 2 0.599%
Millbrook 8,914,242 3 0.597%
Riverwalk II LLC 8,519,221 4 0.570%
Penobscot Management LLC(3)8,450,998 5 0.566%
Riverwalk South LLC(2)8,099,217 6 0.542%
Aptakisic Creek Corporate Park, LLC 7,728,838 7 0.518%
Arthur J. Rogers and Company (4)7,705,919 8 0.516%
Manufactures Life Insurance 6,018,549 9 0.403%
MFREVF-Windbrooke LP 5,901,309 10 0.395%
Amli at Chevy Chase, LP
First Chicago Property
Strathmore Square
LaSalle Bank
(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:
Office of the County Clerk of Cook
Office of the County Clerk of Lake
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.
Page 145
2006
Percentage
of Total
Village
Equalized Equalized
Assessed Assessed
Valuation Rank Valuation
15,021,946 2 0.90%
16,872,585 1 1.006%
11,679,495 4 0.696%
8,752,095 6 0.522%
10,105,206 5 0.602%
8,459,468 7 0.504%
14,647,024 3 0.873%
7,308,089 8 0.436%
6,878,960 9 0.410%
6,746,003 10 0.402%
Page 146
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Levy and Collections
Last Ten Fiscal Years
Lake County Cook County
Collected within the Collected within the
Fiscal Year After the Levy Fiscal Year After the Levy
Levy Tax Percentage Tax Percentage
Year Levied Amount of Levy Levied Amount of Levy
2014 11,339,326$ 11,322,087$ 99.85%3,500,800$ 3,409,452$ 97.39%
2013 11,413,067 11,172,745 97.89%3,424,515 3,381,819 98.75%
2012 11,183,780 11,105,274 99.30%3,449,572 3,399,477 98.55%
2011 11,026,478 11,019,638 99.94%3,279,285 3,225,824 98.37%
2010 10,911,629 10,902,757 99.92%3,280,083 3,203,676 97.67%
2009 10,826,999 10,818,398 99.92%3,131,059 2,992,768 95.58%
2008 9,648,296 9,639,444 99.91%2,882,493 2,902,223 100.68%
2007 9,137,324 9,133,824 99.96%2,937,238 2,871,428 97.76%
2006 8,389,127 8,383,359 99.93%2,572,578 2,538,174 98.66%
2005 7,690,488 7,692,967 100.03%2,492,952 2,454,868 98.47%
Note: Property Assessed at 33 1/3%of actual value
Property is assessed on the following basis: Cook County - Triennial; Lake County Quadrennial (minimum)
Collection of prior year taxes are immaterial
Data Source:
Office of the County Clerk
Page 147
Village Total
Percentage
Collected of Levy
14,731,539$ 99.27%
14,554,564 98.09%
14,504,751 99.12%
14,245,462 99.58%
14,106,433 99.40%
13,811,166 98.95%
12,541,667 100.09%
12,005,252 99.43%
10,921,533 99.63%
10,147,835 99.65%
Page 148
VILLAGE OF BUFFALO GROVE, ILLINOIS
Sales Tax Revenue and Number of Principal Payers
Revenue By Category
Last Ten Calendar Years
2015 2014 2013 2012
General Merchandise 66,228$ *9,098$ 10,105$ 17,526$
Food 1,552,983 1,080,556 1,133,605 1,193,312
Drinking and Eating Places 1,062,206 1,023,545 1,025,547 997,738
Apparel 94,538 104,229 120,210 130,163
Furniture, Households and radio 521,007 356,095 463,678 *437,774
Lumber, Building and Hardware 1,879,818 1,666,708 1,236,689 812,434
Automotive Filling Stations 918,216 947,278 857,713 954,996
Drugs and Miscellaneous Retail 1,790,381 2,349,469 1,915,937 1,847,550
Agriculture and All Other 2,313,502 1,693,506 1,572,248 1,347,303
Manufacturers 351,808 270,063 285,848 334,442
10,550,687$ 9,500,547$ 8,621,580$ 8,073,238$
Total Number of Payers 1,043 974 972 966
Village Direct Sales Tax rate 1.00%1.00%1.00%1.00%
Village Home Rule Tax rate 1.00%1.00%1.00%1.00%
Note: Blank Catagories have less than four taxpayers; therefore, no data is shown to protect the
confidentiality of individual taxpayers.
* Excludes values for taxpayers in Cook County.
Data Source:
Office of the County Clerk of Cook
Office of the County Clerk of Lake
Illinois Department of Revenue
Page 149
Calendar Year
2011 2010 2009 2008 2007 2006
18,514$ 3,901$ 4,637$ 5,819$ 3,793$ 1,346$
1,244,667 1,362,170 1,357,378 1,415,835 1,371,195 1,340,177
921,617 933,212 941,804 906,628 874,307 924,738
129,402 128,663 112,951 104,376 110,386 67,072
378,836 415,396 223,008 521,316 422,342 530,825
534,413 402,483 716,935 1,379,764 2,181,496 3,326,323
853,864 959,870 1,222,500 1,177,121 1,715,400 1,581,217
1,982,824 1,431,121 1,432,484 1,285,513 1,237,894 1,206,917
1,193,620 1,062,978 1,257,806 2,082,955 1,777,144 1,755,277
378,326 379,893 399,141 390,034 338,494 438,024
7,636,083$ 7,079,687$ 7,668,644$ 9,269,361$ 10,032,451$ 11,171,916$
1,286 997 975 1,002 1,196 1,311
1.00%1.00%1.00%1.00%1.00%1.00%
1.00%1.00%1.00%1.00%1.00%1.00%
Page 150
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
2015 1.00%6.50%
2014 1.00%6.50%
2013 1.00%6.50%
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%
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Illinois Department of Revenue
Page 151
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratio of Outstanding Debt by Type
Last Ten Years
Governmental
Activities
General General Total
Year Obligation Obligation IEPA Installment Primary
Ended Bonds Bonds Loan Note Government
12/31/2015 10,202,453$ -$ 383,487$ 1,193,599$ 11,779,539$
12/31/2014 10,730,503 - 400,519 - 11,131,022
12/31/2013 11,340,000 - 173,618 - 11,513,618
12/31/2012 12,280,000 - - - 12,280,000
12/31/2011 7,200,000 - - - 7,200,000
12/31/2010 8,255,000 - - - 8,255,000
12/31/2009 6,575,000 - - - 6,575,000
12/31/2008 7,740,000 - - - 7,740,000
*12/31/2007 8,890,000 - - - 8,890,000
4/30/2007 10,202,381 174,768 - - 10,377,149
*Transitional fiscal year May 1, 2007 through December 31, 2007
December 31, 2007 represents an eight-month period.
Notes:
Details of the Village's outstanding debt can be found in the Notes to the Financial Statements.
(1) See the Schedule of Demographic and Economic Statistics for equalized assessed valuation
of property, personal income, and population data.
Business-type Activities
Page 152
Ratio of
Total
Outstanding Debt
Debt to Total Outstanding
Equalized Outstanding as a Percentage
Assessed Debt of Personal
Valuation Per Capita (1)Income
0.26%283.82$ 0.61%
0.26%265.11 0.57%
0.27%275.59 0.61%
0.27%290.10 0.65%
0.14%171.79 0.39%
0.16%198.93 0.45%
0.12%156.62 0.36%
0.14%183.54 0.44%
0.16%209.47 0.51%
0.22%243.80 0.60%
Page 153
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Ratio of
Total
Amounts Outstanding
Available Debt to Total
General in Debt Equalized Outstanding
Fiscal Obligation Service Assessed Debt
Year Bonds Fund Total Valuation Per Capita (1)
2015 10,202,453$ -$ 10,202,453$ 0.23%245.82$
2014 10,730,503 - 10,730,503 0.25%255.57
2013 11,340,000 - 11,340,000 0.27%271.43
2012 12,280,000 19,527 12,260,473 0.27%289.64
2011 7,200,000 12,543 7,187,457 0.14%171.49
2010 8,255,000 20,271 8,234,729 0.15%198.45
2009 6,575,000 (12,970) 6,587,970 0.12%156.93
2008 7,740,000 33,167 7,706,833 0.14%182.76
2007*8,890,000 98,332 8,791,668 0.16%207.16
2007 10,202,381 486,946 9,715,435 0.20%228.25
*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.
Page 154
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Governmental Activities Debt
As of December 31, 2015
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 40,805,000$ 17.78%7,255,129$
Kildeeer Countryside Community Consolidated #96 720,000 38.38%276,336
Aptakisic-Tripp Community Consolidated #102 3,780,000 76.12%2,877,336
Lincolnshire-Half Day District #103 2,515,000 11.78%296,267
Adlai E. Stevenson H.S. District # 125 14,355,000 37.10%5,325,705
Wheeling Township H.S. District #214 58,210,000 3.76%2,188,696
Harper Community College #512 170,935,000 1.68%2,871,708
College of Lake County #532 73,135,000 5.31%3,883,469
Total School Districts 364,455,000 24,974,646
Other Than School Districts
Lake County 103,460,000 5.04%5,214,384
Lake County Forest Preserve 274,450,000 5.04%13,832,280
Cook County 3,466,835,000 0.22%7,627,037
Cook County Forest Preserve 172,535,000 0.22%379,577
Metropolitan Water Reclamation District 2,642,374,005 0.23%6,077,460
Buffalo Grove Park District 18,290,000 96.12%17,580,348
Wheeling Park District 12,770,000 8.27%1,056,079
Total Other than School Districts 6,690,714,005 51,767,165
Total Overlapping Debt 7,055,169,005 76,741,811
Total Village of Buffalo Grove Direct Debt 10,202,453 100.00%10,202,453
Total Direct and Overlapping Debt 7,065,371,453$ 86,944,264$
*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 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.
Page 155
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Legal Debt Margin
December 31, 2015
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as
set by the General Assembly.
Page 156
VILLAGE OF BUFFALO GROVE, ILLINOIS
Demographic and Economic Statistics
Last Ten Years
Equalized Per Capita
Fiscal Assessed Personal Personal Per Capita Unemployment
Year Population Valuation EAV Income Income Rate
2015 41,503 E 1,493,483,771$ 35,985 1,930,595,051$ 46,517 1 4.2%
2014 41,987 E 1,425,060,788 33,941 1,939,085,621 46,183 E 5.7%
2013 41,778 E 1,456,040,510 34,852 1,882,391,346 45,057 1 6.8%
2012 42,330 E 1,531,173,377 36,172 1,891,582,681 44,687 E 7.1%
2011 41,911 E 1,664,431,364 39,713 1,854,311,029 44,244 E 7.6%
2010 41,496 A 1,774,100,787 42,754 1,817,773,776 43,806 3 8.4%
2009 41,980 E 1,896,782,514 45,138 1,802,196,362 42,930 E 7.8%
2008 42,170 E 1,881,094,422 44,607 1,774,145,979 42,071 E 4.8%
*2007 42,440 E 1,810,821,475 42,668 1,749,795,121 41,230 E 3.7%
2007 42,564 E 1,677,222,407 39,405 1,719,809,470 40,405 E 3.2%
A - Actual 1- US Census
E - Estimate 2- Northern Illinois University Estimate
3 - American Community Survey 3 Year Estimates
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
U.S. Department of Labor, Bureau of Labor Statistics
U.S. Census Bureau
Page 157
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Village Employers
Current Year and Nine Years Ago
2015 2006
Percent Percent
of Total of Total
Village Village
Employer Employees Rank Population Employees Rank Population
Siemens Building Technologies 1,800 1 4.34%1,030 2 2.43%
I.S.I.1,200 2 2.89%
ESS 550 3 1.33%
Plexus Corporation 370 4 0.89%400 5 0.94%
Veritas Document Solutions 300 5 0.72%
Dell 225 6 0.54%
Intelligent Hospital Solutions 200 7 0.48%
Vapor Bus Direct 200 8 0.48%
Leica Microsystems, Inc 200 9 0.48%
Berry Plastics 180 10 0.43%
Wes-Tech Automation Solutions 180 10 0.43%
Allstate Insurance Company 1,323 1 3.12%
Rexam 599 3 1.41%
Dominicks Finer Foods (3 locations)483 4 1.14%
Harris Trust & Savings Bank 350 6 0.82%
Federal Express 300 7 0.71%
RG Ray 250 8 0.59%
Village of Buffalo Grove 241 9 0.57%
Automated Technologies 224 10 0.53%
Data Source:
Village Records - Earliest available
Page 158
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Employees
Last Ten Years
Function/Program 2015 2014 2013 2012
General Government
Administration
Village Managers Office 6.0 7.5 5.5 4.5
Planning - 1.5 1.5 1.5
Information Technology - 3.0 3.5 3.5
Finance 8.0 10.0 9.5 8.5
Building and Zoning 12.0 9.5 10.0 10.0
Public Safety
Police
Full-Time Police Officers 63.0 63.0 64.0 69.0
Community Service Officers 3.0 3.0 3.0 3.0
Civilians 15.0 15.0 17.0 16.5
Fire
Full-time Firefighters/Paramedics 59.0 58.0 58.0 62.0
Civilians 1.0 1.5 3.5 3.5
Public Works
Public Works Administration 6.0 6.0 5.0 11.0
Streets/Forestry 20.0 18.5 18.5 20.0
Water/Sewer 10.0 9.0 8.0 13.0
Central garage 5.5 5.5 5.5 5.5
Building Maintenance 6.0 6.0 4.0 4.0
Recreation
Administration 19.5 19.5 18.0 13.5
Grounds Maintenance 11.5 11.5 16.0 15.0
245.5 248.0 250.5 264.0
Recreation
Seasonal 24.5 24.5 24.5 34.0
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Village Finance Department
Page 159
2011 2010 2009 2008 2007*2007
4.0 4.0 4.5 5.0 5.0 4.5
1.5 1.5 1.5 1.5 1.5 1.5
3.5 3.5 3.5 3.5 3.5 3.5
8.5 8.5 9.0 9.5 9.5 9.5
10.0 10.0 10.0 10.5 10.5 10.5
69.0 69.0 71.0 71.0 71.0 70.0
3.0 3.0 3.0 3.0 3.0 3.0
17.5 17.5 20.5 21.5 21.5 22.5
62.0 62.0 62.0 62.0 61.0 62.0
6.0 6.0 6.0 6.0 6.0 6.0
11.0 12.0 12.0 14.5 14.5 14.5
20.0 20.0 20.0 20.0 20.0 20.0
13.0 13.0 13.0 14.0 14.0 14.0
5.5 5.5 5.5 5.0 5.0 4.0
4.0 4.0 4.0 4.0 4.0 4.0
13.5 13.5 13.5 13.5 13.5 13.5
15.0 15.0 15.0 15.0 15.0 15.0
267.0 268.0 274.0 279.5 278.5 278.0
34.0 34.0 34.0 34.0 34.0 34.0
Page 160
VILLAGE OF BUFFALO GROVE, ILLINOIS
Operating Indicators
Last Ten Fiscal Years
Function/Program 2015 2014 2013 2012
General Government
Building and Zoning
Building Permits Issued 2,582 2,833 2,651 2,206
Building Inspections Conducted 11,625 7,074 7,456 15,858
Property Maintenance Inspections Conducted 1,894 3,172 3,288 5,828
Public Safety
Police
Physical Arrests 809 886 759 671
Parking Violations 3,766 3,634 2,984 3,341
Traffic Violations 7,969 8,349 13,171 10,826
DUI Arrests 97 154 124 107
Vehicle Crashes 363 1,429 1,507 1,260
Fire
Ambulance Calls/EMS 3,123 3,385 2,613 2,789
Service Calls 340 1,245 483 487
Fire Calls 1,585 821 865 698
Auto Aid/Mutual Aid 1,055 1,063 654 680
Public Works
Streets
Street Resurfacing (Miles)2.45 3.28 10.84 5.51
Parks and Recreation
Park Sites 46 46 46 46
Golf Course - Combined
Golf Rounds Played - Paid 68,602 54,689 53,639 59,937
Water
New Connections (Tap-ons)23 9 27 15
Average Daily consumption (1)3.39 3.58 3.70 3.92
Peak Daily consumption (1)5.14 5.40 6.20 7.93
(1) - Millions of Gallons
*Transitional fiscal year May 1, 2007 through December 31, 2007
N/A - Not Available
Data Source:
Various Village Departments
Page 161
2011 2010 2009 2008 2007*2007
1,930 1,959 1,922 1,746 1,695 1,282
9,661 7,088 6,633 5,054 21,383 13,416
3,462 3,158 2,348 2,159 2,962 3,448
820 981 989 1,085 2,143 N/A
2,031 2,062 3,267 3,451 4,721 N/A
11,867 11,999 11,373 15,795 12,010 N/A
164 222 267 337 482 N/A
1,396 1,391 1,414 1,786 1,555 N/A
2,568 2,743 2,553 2,590 2,943 2,583
1,053 610 718 751 678 684
737 735 774 881 858 788
676 654 672 689 379 406
2.90 3.00 4.94 4.94 8.23 8.30
46 46 46 46 46 46
56,918 52,740 59,723 58,097 60,258 61,005
12 50 7 25 33 98
4.09 4.30 4.21 4.09 4.35 4.61
7.84 7.30 7.29 7.03 8.39 8.88
Page 162
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Asset Statistics
Last Ten Fiscal Years
Function/Program 2015 2014 2013 2012
Public Safety
Police
Stations 1 1 1 1
Patrol Units 30 29 28 34
Fire
Stations 3 3 3 3
Fire Apparatus 20 20 21 21
Public Works
Streets
Street (Miles)118.20 118.20 117.70 117.70
Streetlights 2,789 2,786 2,778 2,778
Water
Water Mains 181.14 180.90 180.30 180.25
Fire Hydrants 2,493 2,487 2,477 2,475
Wastewater
Sanitary Sewers 139.92 139.80 139.30 139.27
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Various Village Departments
Page 163
2011 2010 2009 2008 2007*2007
1 1 1 1 1 1
36 36 36 36 36 35
3 3 3 3 3 3
21 21 21 20 20 20
117.70 117.70 117.70 117.50 117.50 117.50
2,778 2,745 2,743 2,714 2,614 2,374
180.25 179.83 179.82 180.63 179.57 178.36
2,475 2,475 2,474 2,474 2,468 2,449
139.27 139.27 139.27 139.24 139.12 138.72