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2015 PAFR A Citizen’s Guide to Local Financial Activities Fiscal Year Ended December 31, 2015 A Message From the Village President “The Village of Buffalo Grove’s greatest resource is its volunteers. They donate endless hours to make our community great!” Your Elected Officials Public Records Looking for meeting infor- mation, to contact elected officials, review financial information or request public records? One visit to the Village’s Transpar- ency Portal web page brings all of this infor- mation and more at the click of a mouse. http://www.vbg.org/817/ Village-Transparency Buffalo Grove Wins Tree City USA Award for 28th Con- secutive Year Tree City USA recognized the Village of Buffalo Grove for its dedication to community forestry management. The Village maintains a forestry department, has community tree ordinanc- es, spends over two dollars per capita on trees and celebrates Arbor Day. Village of Buffalo Grove Receives 2015 Innovation Award from Lake County Municipal League The Village received the award due to its role in developing an Information Technology (IT) Consortium called GovITC, along with Lake Bluff, Kenilworth, Glenview and Lincolnshire. Each of the communities now outsource their IT functions to the same service provider, which allows greater availability of programming and security specialists. The five community mem- bers currently serve as back up and disaster recovery sites for one another, in addition to host- ing email archiving which all serve to drive down cost. The Village has saved $240,000 annually on staffing costs, while IT speed and reliability has increased. Other benefits include improved decision making and faster resolution of IT related issues. The Consortium’s long term goals include developing a five-year technology plan, and to share a data center and server space for joint software programs. The Lake County Munici- pal League recognizes municipalities who have developed strategic programs that solve munici- pal challenges and increase the effectiveness of local government. The awards program also creates an opportunity for the exchange of information and experiences to build capacity for Village Clerk’s Office The Village Clerk and Deputy Village Clerk maintain all of the Village’s official records, meeting minutes and documents on behalf of our residents. In addition, a range of services includ- ing business and liquor licensing, voter registration and munici- pal code updates are provided daily. Contact the Village Clerk’s office at (847) 459-2511. It is with great pleasure that the Village of Buf- falo Grove elected officials and I provide the annual “A Citizen’s Guide to Local Financial Activities” for the fiscal year ended December 31, 2015. It is my desire to deliver the resi- dents of Buffalo Grove an overview of the Village’s progress and financial performance that is transparent and easily understood. This report summarizes the financial activities of the Village and is not intended to replace the Comprehensive Annual Financial Report (CAFR). The full disclosure financial statements, or CAFR, can be found on the Village’s website at www.VBG.Org. The analysis conducted within this report outlines growth drivers, capital projects, and summarized financial and trend data. The presentation of financial information in the report has been derived from the audited financial statements and conforms to generally accepted accounting principles (GAAP) and related reporting standards. The Village will continue to make financial presentation and transparency a priority and provide open communication with its residents and businesses. It is my hope that the information and data contained in the 2015 guide to local financial activities will provide the reader a snapshot of the challenges and opportunities the Village of Buffalo Grove is managing today and into the future. Sincerely, Beverly Sussman Village President www.vbg.org Jeffery Berman, Trustee Joanne Johnson, Trustee Lester Ottenhieemer, Trustee Andrew Stein, Trustee Steve Trilling, Trustee David Weidenfeld, Trustee Quality of Life in Buffalo Grove Enjoying Buffalo Grove Buffalo Grove Days Relocates Labor Day Weekend Enjoy food, fun, music, carnival games, fire- works and more at this four-day celebration. Located at Mike Rylko Park 801 McHenry Rd Buffalo Grove, IL 60089. National American Public Works Assn. Awards Buffalo Grove Excellence in Snow and Ice Control This honor has been presented to the Village of Buffalo Grove for its excellence in the man- agement and admin- istration of public works snow and ice opera- tions while promoting best practices that mini- mize environmental impacts. The Village of Buffalo Grove is located approximately 33 miles northwest of downtown Chicago and 20 miles north of O’Hare International Airport. The Village’s land area is 9.3 square miles, with 21.7 percent of the area in Cook County and 78.3 percent in Lake County. Neighboring communities include Arlington Heights, Lincolnshire, Long Grove, Riverwoods, Vernon Hills and Wheeling. The Vil- lage’s current popula- tion is 41,987 (2014 Village estimate). Buffalo Grove was incorporated in 1958 and experienced strong growth in population and land area for several decades. The Village’s Comprehensive Plan projects the Village’s land area could reach approximately 11.2 square miles. The Village has ex- cellent transportation access for residents, businesses, employees and visitors. The Village is served by the Metra North Central rail line connecting to downtown Chicago and O’Hare airport. Pace bus service provides access to adjacent communities, the Metra Milwaukee District North rail line and the Skokie Swift CTA Yellow Line. The regional road system serving the Village includes Aptakisic Road, Buffalo Grove Road, Lake Cook Road, and state routes 21, 22, 45 and 68, with direct links to Route 53 and Interstate 94. The Village’s commercial base includes several corpo- rate business parks, a diverse retail sector and a wide range of professional services, in- cluding medical facilities. The Village’s residential areas in- clude single-family neighbor- hoods, townhomes, condo- miniums and apartments. The housing stock is very diverse, with units of different sizes and designs available at vari- ous price points to serve the community’s population. The Village is served by four elementary school districts and two high school districts, all of which consistently receive acknowledgement for providing high quality education for children and young adults in the community. Buffalo Grove is served by two library districts and two park districts. The Village has over 800 acres of parks and open space, including two municipal golf courses and a substantial bike path and sidewalk network. Numerous opportunities for cultural and entertainment activities are available for residents and visitors. From January through December, Buffalo Grove offers many opportunities to enjoy community. Buffalo Grove residents place a high priority on quality events and programs for their families. During the warmer summer months, many events are going on throughout the Village, such as:  Rotary Village Green concerts  Lawn Chair Lyrics  Movies Under the Stars  Farmer’s Market  Green Fair  Buffalo Grove Symphonic Band  Buffalo Grove Singers  Buffalo Grove Days  National Night Out  Fourth of July Fireworks  Golf at Buffalo Grove and Arboretum Golf Courses And, in the winter, there is plenty more to do inside, with many sports and extracur- ricular activities offered by the Buffalo Grove Park District, Buffalo Grove Recreation Association, township, library and local school district programs. Did You Know? Buffalo Grove boasts more than 800 acres of parks and open space —or 834 square feet of space per person. That’s 4.5 times more than Chicago! Farmers Market June to October Ranked Illinois’ best Farmer’s Market, come out to Mike Rylko Park on Sundays from 8:00 AM to 12:30 PM for the best in local food! Comparative Data (Source: US Census) Buffalo Grove State of Illinois United States of America Median Income $96,768 $57,166 $53,482 Median Home Value $295,500 $175,700 $175,700 Homeownership Rate 80.2% 66.9% 64.4% Unemployment % 4.2% 6.0% 5.4% Persons in Poverty 4.50% 14.40% 14.80% 44% 9%4%5% 2%11% 4% 14% 6% 1% Buffalo Grove Land Use Single Family Detached (SFD) Single Family Attached (SFA) Multiple Family (MF) Commercial Office Industrial Public/Semi-Public Pay with Credit and Debit Cards at the Village of Buffalo Grove All licenses, fees, fines, registrations, permits, and bills can be paid via credit card. All credit card trans- actions are subject to a convenience fee of $1.80 per water payment and 2.39% for all other transac- tions. The fee is processed by the third party credit card provider. The Village currently accepts Visa, MasterCard, and Discover. Follow the Village of Buffalo Grove on Social Media The Village of Buffalo Grove has joined social media! Find out about special events news up- dates, and more by follow- ing us on Twitter, liking us on Facebook, and adding us on LinkedIn. Always know what is happening in your Village by tuning in through social media. Buffalo Grove Stats 2015 2014 2013 Population 41,503 41,987 41,778 Income Per Capita $46,517 $46,183 $45,057 Expenditures Per Capita $1,655 $1,501 $1,510 Debt Per Capita $241.91 $251.27 $271.43 Streets Resurfaced 2.45 mi 3.28 mi 10.84 mi Village of Buffalo Grove wins 34th Consecutive CAFR Award The Village of Buffalo Grove received its 34th consecutive certificate of achievement for excellence in financial reporting. The award criteria are based on the presentation of the annual financial report in a manner that provides transparency and full disclosure of the entity’s fiscal year. Providing this report goes beyond the minimum requirements of generally accepted accounting principles. The Village has also complied with Governmental Account- ing Standards Board standards as they have changed the manner in which post employment benefits are presented and disclosed. This is the highest honor from the Government Finance Officers Association. Village of Buffalo Grove wins 4th Consecutive Distinguished Budget Award The Village achieved its goal for the third year in a row being awarded the Distinguished Budget Award for 2015. The method for which the Vil- lage of Buffalo Grove budget is compiled takes into account the guide- lines provided by the Na- tional Advisory Council on State and Local Budget- ing and the Government Finance Officers Associa- tion’s best practices on budgeting. The award shows the continued suc- cess of Village staff to produce a high quality document that is fiscally responsible. This is the highest budgetary honor that is bestowed on a community from the Gov- ernment Finance Officers Association. The Village relies on various tax sources as they make up 58.55 percent of the total revenue into the Village. These revenues give the Village the ability to provide essential public ser- vices. The table below shows the actual amounts the Village collected for each revenue source for governmental activities. Miscellaneous income is mostly comprised of one -time, extra ordi- nary items and grant funds. Property and other taxes are tied to the core services, Police, Fire and Public Works, that the Village provides. Proposed Legislation in the Illinois House of Rep- resentatives and Senate could reduce the amount of revenue the Village would collect from income tax, use tax, and other taxes. Passing legislation of this nature would severely impact the Village’s ability to maintain the current levels of service the residents of Buffalo Grove re- ceive. The Village allocates a significant amount of resources to core services like Police, Fire, and Public Works. The graphs on this page show the Village has allocated its resources in fiscal year 2015. The bar graph provides a visual based on how many actual dollars were spent on each function. Public Safety and Public Works combine for more than $33,900,000. The gen- eral government expenditures are six times less than Public Safety and Public Works. The General Government includes: Office of the Village Manager, Finance Department, Human Re- sources, and Building and Zoning. Capital outlay and debt service are also tied into Public Safety and Public Works. Capital Outlay was divided between facilities development costs and road improvements, while debt service spending is related to infrastructure improvements al- ready made. When those amounts are allocated with the total expenditures for Public Safety and Public Works the total tops $37,500,000. The Village of Buffalo Grove expended over 88 percent of its resources on Public Safety, Public Works, Facilities and Infrastructure. How are Village Resources Expended? Where Do Village Resources Come From? 26 31 47.5 60 81 Administration Golf Public Works Fire Department Police Department Budgeted Employment by Department - 2015 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 General Government Public Safety Public Works Capital Outlay Debt Service 5,084,772 25,237,115 8,092,735 2,828,194 806,747 2015 Expenditures by Function ($) 14,742,622 12,271,219 9,712,718 1,931,512 1,404,841 1,330,769 350,042 25,061 Revenues by Source ($) Property Taxes 35% Intergovernmental 29% Other Taxes 23% Fines and Forfeitures 5%Miscellaneous 3% Charges for Services 3%Licenses and Permits 1% Investment Income < 1% 2015 Revenues by Source Emergency Management Agency The Village maintains an emergency management agency to provide re- sponse to natural or man -made disasters in our community. Working throughout the year and behind the scenes, EMA volunteers prepare for worst case scenario events, network with other EMA local and re- gional agencies and pro- vide support services to other events throughout the Chicagoland area. The Emergency Man- agement Director is Fire Chief Mike Baker. Reverse 911 Do you want the Village to be able to contact you in the event of a commu- nity emergency? If so, make sure to sign up through the Village’s web site: http://www.vbg.org/830/ Everbridge-Citizen- Portal You can choose to receive email, text and phone alerts, and your contact information will never be sold or used for another purpose. As a full service organization, the Village of Buffalo Grove pro- vides critical water, wastewater, storm water, street, pedestrian and pathway, forestry and grounds maintenance services. Public Safety is a high priority for the Village and its residents. Comprising 65 percent of Village employees, the Buffalo Grove Fire and Police Departments provide the highest quality safety services to residents and businesses. Some of the programs offered by the departments include:  Coffee with a Cop  Infant/Child Seat Safety Checks  Home Security Inspections  School Crossing Guards  School Resource Officers  Citizen & Junior Police Academies  Bicycle Registration  Care Trak Program  Premise Alert Notifications  K-9  Police Social Worker  CPR Classes  School Fire Drills  Smoke Education Trailer  Open House  Block Parties  Station Tours Public Safety Services Infrastructure and General Services With a dedicated staff of professional maintenance personnel, the Public Works Depart- ment provides around the clock infrastructure services, ranging from maintenance of Vil- lage facilities to providing clean, high-quality Lake Michigan water. Always there to serve, our team of professionals strives to maintain a clean, attractive and high-functioning net- work of streets, sewers, mains and paths for your enjoyment. The Village also provides administrative support to its residents and departments through its Building and Zoning, Finance, and Office of the Village Manager personnel. Compris- ing 11 percent of the Village’s staffing complement, these professionals specialize in the building and construction trades, architecture, technology, accounting, finance, technical analysis and management fields. Police Department Number Physical Arrests 809 Adjudication Citations 3,766 Traffic Citations 7,969 DUI Arrests 97 Vehicle Crash Responses 363 Fire Department Number Ambulance Calls 3,123 Service Calls 340 Fire Calls 1,585 Auto Aid/MABAS 1,055 Did you know? The Village of Buffalo Grove Maintains 118.20 miles of street and has resurfaced 22.08 miles in the last 4 years. Buffalo Grove Wins 2nd Consecutive Popular Annual Financial Reporting Award The Village of Buffalo Grove was awarded its second Popular Annual Financial Reporting (PAFR) Award for the fiscal year 2014. The PAFR is a summary of the Comprehensive Annual Financial Report (CAFR) issued by the Village and is meant to be a document that can communicate financial information of the Village to those residents without a background in finance. The report highlights the projects and initiatives in the Village over the past fiscal year. It also provides an overview of the balance sheet, revenues, and expenditures to under- score the stability and perfor- mance of operations of the Village. Streetlights Replaced through Performance Contracting The Village of Buffalo Grove partnered with Siemens to replace 1,436 inefficient street lights with new Light Emitting Diode (LED) technology. The new lamps will save the village 60% on energy consumption, and last 5 to 7 times longer between replacement cycles. This initiative has allowed the Village to upgrade a key part of its infrastructure, lower energy consumption, and reduce operating expenses. The savings are guaranteed by contract, which has allowed the Village to cover financing costs and redirect the savings to other priorities. The old high pressure sodium lamps had a yellow/orange glow to them that tends to wash away colors and make it harder for people to see clearly at night. The new LED lamps feature a whiter light designed to be more visible to the human eye, thus improving the color rendition and clarity in the streets. This is a major perk in terms of the safety of our streets for our residents. The picture to the right shows the new white light LED’s. This allows better color rendition and clarity than the old high pressure sodium lights, as shown on the left. High Pressure Sodium (Before) Light Emitting Diode (After) Equalized Assessed Valuation 2015 Village EAV $1,493,483,771 Total EAV Per Capita $35,985 Village of Buffalo Grove holds high- est Bond Rating attainable Moody’s Investor Ser- vices currently recogniz- es the Village as Aaa bond rated for its exist- ing debt. The rating by Moody’s was assigned in 2012 The Village is also rated AAA by Standard & Poor’s . The AAA rat- ing was last affirmed 2015. Village of Buffalo Grove EAV increas- es for second con- secutive year The Villages EAV in- creased from $1,425,060,788 in 2014 to $1,493,483,771 in 2015. This is the second consecutive increase in EAV in as many years. The increase trend is a great indicator that As- sessed Property Values in the Village are re- bounding from the recent recession and the con- tinuance of that trend has a positive outlook. More commonly referred to as EAV, is the ratio of the total value of real estate compared to all oth- er properties in the jurisdiction of the government, which the gov- ernment has set as a basis for levying taxes. EAV calculations are different for residential and commercial prop- erties. In addition, Cook and Lake Counties use differing formulas to establish EAV. Buffalo Grove By the Numbers Tax Collection By Source Tax Type Amount ($) Property 14,742,622 Sales & Home Rule 9,274,777 Income & Use 5,409,875 Telecommunication 1,644,309 Utility 2,643,642 Property Transfer 904,311 Other 1,092,554 Total 35,712,090 Use of Taxes By Function Fund Assets Liabilities Fund Balance Governmental Funds Major General 39,698,779 16,399,885 23,298,894 Facilities Development 0 3,707,560 (3,707,560) Non-Major Motor Fuel 1,897,638 132,079 1,765,559 Metra Parking Lot 67,943 6,545 61,398 Debt Service 599,063 599,063 0 Street Maintenance 412,444 265,286 147,158 Enterprise Funds Major Water & Sewer 41,516,421 4,548,727 36,967,694 Arboretum Golf Club 7,348,226 209,654 7,138,572 Non-Major Buffalo Grove Golf Club 1,204,269 340,166 864,103 Refuse 1,097,825 0 1,097,825 Fiduciary Funds Pension Trusts 106,905,308 172,192 106,733,116 Agency 525,757 525,757 0 TOTAL 201,273,673 26,906,914 174,366,759 2015 Balance Sheet ($) Capital Assets by Category Asset/Fund Governmental Enterprise Total 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/Vehicles 11,884,949 94,510 11,979,459 Streets & Storm Sewers 57,385,410 0 57,385,410 Water & Sewer System 0 62,106,468 62,106,468 LESS: Accumulated De- preciation (77,798,717) (44,818,704) (122,617,421) TOTAL 54,649,420 39,950,029 94,599,449 By The Numbers: Village of Buffalo Grove Balance Sheet The Village of Buffalo Grove carries $7.48 of assets for every dollar of liability. Buffalo Grove maintains a high fund balance primarily because of three funds; the Pen- sion Trust Funds, Water and Sewer Fund, and the General Fund. Major Funds account for 94.13 percent of the fund balance while minor funds account for 4 percent, net of the Fiduciary Funds. Capital Asset Values: What is the most valuable Asset in the Village? The Village’s infrastructure and other capital assets are main contributors to the Water and Sewer Fund and the General Fund balances. The Village’s water and sewer system is the most valuable capital asset, followed by streets and storm sewers. The third highest is land. These three asset categories make up sixty percent of the capital assets, before depreciation. Top Ten Real Estate Tax Payers Equalized Assessed Valuation ($) Chevy Chase Business Park Ltd. 26,362,226 Hamilton Partners 8,949,806 Millbrook 8,914,242 Riverwalk II LLC 8,519,221 Penobscot Management LLC 8,450,998 Riverwalk South LLC 8,099,217 Aptakisic Creek Corp Park, LLC 7,728,838 Arthur J. Rodger and Co 7,705,919 Manufacturers Life Insurance 6,018,549 MFREVF-Windbrooke LP 5,901,309 * Lake County, Lake County Forest Preserve, Buffalo Grove Park District, Vernon Area Public Library, and Townships * Cook County, Cook County Forest Preserve, Buffalo Grove Park District, Indian Trails Public Library, Metropolitan Water Reclamation District of Greater Chicago and Townships Tax Rates by County $100 of Property Taxes Collected by County Village of Buffalo Grove Total Debt Outstanding 4th Smallest Amongst All Taxing Districts in Cook and Lake County The Village of Buffalo Grove, as of 12/31/15 has outstand- ing debt of $10,040,000, which is the 4th smallest of all taxing bodies. The following round out the five smallest debt issuers: School Dist 96 - $405,000 School Dist 102 - $3,780,000 School Dist 103 - $6,535,000 Wheeling Park Dist - $10,820,000 Below are the top five govern- mental units that have authori- ty to levy tax in Buffalo Grove: Cook County - $3,361,910,000 Metropolitan Water Reclama- tion District of Greater Chica- go - $2,543,400,740 Lake County Forest Preserve Dist - $259,605,000 Lake County - $190,325,000 Cook County Forest Preserve Dist - $165,330,000 All taxing bodies that have the authority to levy tax in Buffalo Grove can be found in the statistical section of the Village of Buffalo Grove 2015 Comprehensive Annual Financial Report. The table lists each entity and the amount of outstanding debt as of December 31, 2015. - 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 Combined School Districts (102, 125, 532) Village of Buffalo Grove County, including Forest Preserve Buffalo Grove Park District Vernon Area Public Library All Other (*) Lake County Tax Rates by Unit * Other taxing bodies are Township Road and Bridge and Township General Assistance - 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000 Combined School Districts (21, 214, 512) Village of Buffalo Grove Buffalo Grove Park District Indian Trails Public Library District Metropolitan Water Reclaimation District County, including Forest Preserve All Other (*) Cook County Tax Rates by Unit  All other taxing bodies are Northwest Mosquito Abatement, Township Road and Bridge, and Township General Assistance LAKE COUNTY COOK COUNTY Buffalo Grove $10.51 School Districts 21, 214, and 512 $73.69 *All Other $15.80 Buffalo Grove $9.75 School Districts 102, 125, and 532 $71.81 *All Other $18.44