2016 CAFRCOMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
VILLAGE OF BUFFALO GROVE, ILLINOIS
As of and for the Year Ended December 31, 2016
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, 2016
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 - 26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 27
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 28 - 29
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 30
Statement of Net Position - Proprietary Funds 31 - 34
Statement of Revenues, Expenses and Changes in Net Position - Proprietary
Funds 35 - 36
Statement of Cash Flows - Proprietary Funds 37 - 40
Statement of Fiduciary Net Position - Fiduciary Funds 41
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 42
Index to Notes to Financial Statements 43
Notes to Financial Statements 44 - 95
REQUIRED SUPPLEMENTARY INFORMATION
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - General 96
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2016
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 97
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 98
Police Pension Fund - Schedule of Changes in the Village's Net Pension
Liability and Related Ratios 99
Police Pension Fund - Schedule of Employer Contributions 100
Police Pension Fund - Schedule of Investment Returns 101
Firefighters' Pension Fund - Schedule of Changes in the Village's Net Pension
Liability and Related Ratios 102
Firefighters' Pension Fund - Schedule of Employer Contributions 103
Firefighters' Pension Fund - Schedule of Investment Returns 104
Other Post Employment Benefits - Schedule of Employer Contributions and Schedule
of Funding Progress 105
Notes to Required Supplementary Information 106
SUPPLEMENTARY INFORMATION
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 107
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 108
Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual
Motor Fuel Tax - Nonmajor special revenue fund 109
Metra Parking Lot - Nonmajor special revenue fund 110
Debt Service - Nonmajor debt service fund 111
Facilities Development - Major capital projects fund 112
Street Maintenance - Major capital projects fund 113
Enterprise Funds
Combining Statement of Net Position - Nonmajor Enterprise Funds 114
Combining Statement of Revenue, Expenses and Changes in Fund Net Position -
Nonmajor Enterprise Funds 115
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 116
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2016
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 117
Refuse Service - Nonmajor enterprise Fund 118
Water and Sewerage - Major enterprise Fund 119
Arboretum Golf - Major enterprise Fund 120
Internal Service Funds
Combining Statement of Net Position - Internal Services Funds 121
Combining Statement of Revenues, Expenses and Changes in Fund Net Position -
Internal Service Funds 122
Statement of Revenues, Expenses and Changes in Fund Net Position - Budget and
Actual
Information Technology - Internal Service Fund 123
Central Garage - Internal Service Fund 124
Building Maintenance - Internal Service Fund 125
Combining Statement of Cash Flows - Internal Service Funds 126
Fiduciary Funds
Combining Statement of Fiduciary Net Position - Pension Trust Funds 127
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 128
Schedules of Changes in Fiduciary Net Position - Budget and Actual
Police Pension - Pension Trust Fund 129
Firefighters' Pension - Pension Trust Fund 130
Statement of Changes in Fiduciary Assets and Liabilities - School and Park
Donations - Agency Fund 131
STATISTICAL SECTION
Net Position by Component 132 - 133
Change in Net Position 134 - 137
Fund Balances of Governmental Funds 138 - 139
Change in Fund Balances of Governmental Funds 140 - 141
Assessed and Actual Value of Taxable Property 142 - 143
Property Tax Rates - Direct and Overlapping Governments 144 - 145
Principal Property Taxpayers 146 - 147
VILLAGE OF BUFFALO GROVE
TABLE OF CONTENTS (cont.)
As of and for the Year Ended December 31, 2016
Page(s)
STATISTICAL SECTION (cont.)
Property Tax Levy and Collections 148 - 149
Sales Tax Revenue and Number of Principal Payers - Revenue by Category 150 - 151
Direct and Overlapping Sales Tax Rates 152
Ratio of Outstanding Debt by Type 153 - 154
Ratio of General Bonded Debt Outstanding 155
Direct and Overlapping Governmental Activities Debt 156
Schedule of Legal Debt Margin 157
Demographic and Economic Statistics 158
Principal Village Employers 159
Full-Time Equivalent Employees 160 - 161
Operating Indicators 162 - 163
Capital Asset Statistics 164 - 165
WUA----G-E-OF-------------------------------J~·." BUFFALO GROVE
Department of Finance & General Services
Fifty Raupp Blvd.
VILLAGE OF
BuHalo Grove, IL 60089-2100
Phone 847-459-2500
Fax 847-459-0332
June 20, 2017
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, 2016 is submitted herewith. This report represents a comprehensive picture of the Village's
financial activities during Fiscal Year 2016 and the financial condition of its various funds at December 31,
2016. State law requires that all general-purpose local governments publish within six months of the close
of each fiscal year a complete set of financial statements presented in conformity with generally accepted
accounting principles (GAAP) and audit in accordance with generally accepted auditing standards by a firm
of licensed certified public accountants.
Management assumes full responsibility for the completeness and reliability of all of the information
presented in the report based upon a comprehensive internal control framework. Because the cost of
internal controls should not outweigh their benefits, the Village's comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement.
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, 2016. 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
of Buffalo Grove's MD&A can be found immediately following the report of the independent auditors.
Profile of the Village of Buffalo Grove
The Village of Buffalo Grove was incorporated March 7, 1958, and is located approximately 29 miles
northwest of the downtown of the City of Chicago. The Village resides in both Cook and Lake Counties
and spans 9.2 square miles and, based on the 2010 U.S. Census, serves a population of 41,496. The Village
of Buffalo Grove is empowered to levy a property tax on real property located within its boundaries. It is
also empowered by state statute to extend its corporate limits by annexation, which it has done from time to
time.
The Village became a home rule unit by referendum on July I, 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.
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 Jot. To provide these services there were 208 full-time and 61 part-time/seasonal positions in the
Fiscal Year 2016 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 arc established through the annual budget under the budget oflicer method. The
Village Board is required to hold a public hearing on the budget document and must adopt a final budget no
later than December 31'1 of each year. The 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.
All budget adjustments must go before the Village Board to amend the legal spending thresholds.
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 arc 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 act1v1ty and limited industrial and
manufacturing activity. There are approximately 760 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 at4.2 percent besting the state by 1.5 percent.
External economic factors at the national and state level continue to impact the Village's revenue profile
and, subsequently its ability to manage operating and capital resources.
• Property tax collections totaled $15,034,583 which is an increase from the previous year's total of
$14,742,622 an increase of 2.0 percent.
• Water and Sewer collections increased from $9,495,691 in 2015 to $10,304,638 in 2016. A total
increase of 8.5 percent.
• Real estate transfer taxes generated $1,115,360 in 2016 versus $904,311 in 2015. Sales of
residential, commercial and industrial properties increased considerably in the current fiscal year.
ii
The Village equalized assessed valuation increased by $51 million or 3.6 percent to $1.48 billion in the
2015 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.
Fiscal Year Ended
Unassigned
Fund Balance
Budgeted
Expenditures
December 31, 2008 $11,587,937 $31,021,971
December 31,2009 $ 9,005,069 $29,418,559
December 31,2010 $ 9,563,655 $29,266,181
December 31,2011 $ 9,872,594 $29,271,054
December 31,2012 $10,302,515 $29,768,828
December 31,2013 $12,395,113 $35,511,109*
December 31,2014 $13,225,644 $37,083,251
December 31,2015 $14,991,907 $38,165,617
December 31,2016 $16,143,726 $39,177,439
*Budget number includes employer pension costs beginning in FY 2013.
Long· Term Financial Planning
37.35%
30.61%
32.68%
33.73%
34.61%
34.90%
35.67%
39.29%
41.21%
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, Twenty-Year Storm Sewer 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 $50.5 million in capital
improvements. Transportation-related projects represent a large percentage of the improvements at $28.8
million. Routine maintenance of existing streets accounts for $20 million of those projects. Approximately
$14.0 million is allocated to improving and maintaining the water utility system.
The Twenty-Year Water Fund Pro-Forma provides an overview of the Water Fund and adequacy of the
current water rate to fund operating expenses and infrastructure improvements as well as generating a
reserve to continue with a pay-as-you-go approach to capital budgeting. The Reserve for Capital
Replacement Funding Report lists all Village owned vehicles, the service life, and its respective reserve
balance.
Major Initiatives
In 2016, the Village of Buffalo Grove issued over 2,900 commercial and residential building permits.
These permits represent a total project valuation of over $60,000,000 invested into the Buffalo Grove
community. In addition to building permit activity, the following major projects were approved in 2016:
Woodman's Food Markets and Shorewood Development Group arc proceeding with plans for a 25-acre
commercial development at the western corners of Deerfield Parkway and Milwaukee Avenue. The
development will be anchored by a 242,000 square foot Woodman's Food Market located on the northwest
corner of the intersection. Woodman's also plans to develop a fuel center, convenience store, quick lube
and carwash on the north side of Deerfield Parkway. Additional commercial and retail developments would
iii
occupy the remaining 7-acres at the southwest corner of the intersection, which would be developed by
Shorewood Development Group.
A formerly vacant property at 875 Busch Parkway in the Corporate Grove industrial park is being
developed with a new 40,437 square foot office and warehouse building. Therm-Fio Inc. and its sister
company Zonatherm Products have outgrown its current facility in Wheeling and have chosen to expand in
Buffalo Grove. Therm-Fio Inc. designs, sells, and services HVAC and generators specifically for
commercial data centers and Zonatherm Products is a commercial power system distributor.
Ridgeline Property Group is currently under construction to develop a new 160,000 square foot industrial
building at 850 Asbury Drive. The developer will demolish the existing building and construct the new
state of the art warehouse/office facility and associated infrastructure
Connexion is an electrical equipment supplier located in a 60,000 square foot warehouse at 1700 Leider
Lane in Buffalo Grove. In 2016, Connexion announced plans to expand into the adjacent space doubling
their square footage to over 120,000 square feet.
In 2016, 102 businesses opened, expanded and/or relocated in the Village of Buffalo Grove.
The Village replaced over 12,000 water meters village-wide on a performance contract. The project will be
paid for through the collections on more efficient water meters capturing 99.9 percent of water
consumption.
Awards und 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-fourth 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 arc 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 I, 2016. 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.
Director of FinanceNillage 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, 2015
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
Public Works
Admin
Engineering
Building
Maintenance
Central Garage
Streets, Drainage &
Sewer
Forestry and Grounds
Water
vii
VILLAGE OF BUFFALO GROVE, ILLINOIS
List of Elected and Appointed Officials
December 31, 2016
Beverly Sussman Janet M. Sirabian
Village President Village Clerk
Board of Trustees
Jeffrey Berman Andrew Stein
Joanne 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 William 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
Page 1
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, 2016, 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 for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of the investment in joint venture, which represent 12.27 percent and 14.71 percent,
respectively, of the assets and net position of the business-type activities and 14.74 percent and 18.21 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 furnished 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 c onducted 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 making 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 expressing an opinion on the effectiveness of the Village of Buffalo
Grove's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
To the Village President and
Board of Trustees
Page 2
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, 2016 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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. W e 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.
To the Village President and
Board of Trustees
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.
Oak Brook, Illinois
June 20, 2017
Page 3
- 4 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
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, 2016. 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,
2016 by $63.3 million (net position). The net position for governmental activities is $16.8 million or 26.5
percent of the total and business-type activities account for $46.5 million. Of this amount, $(25.6) million is
unrestricted, the negative amount of unrestricted assets is directly related to the recognition of all the
Villages pension obligations as noncurrent liabilities, total noncurrent liabilities increased from $70.6 million
in 2015 to $87.8 million in 2016.
• The Village’s net position decreased by $0.8 million (or 1.2 percent) during the fiscal year ending December
31, 2016. The governmental net position decreased by $1.1 million (6.4 percent) and the business-type
activities net position increased by $0.3 million (0.8 percent).
• As of December 31, 2016, the Village of Buffalo Grove’s general fund reported combined ending fund
balances of $25.1 million, an increase of $ 1.8 million from the prior year. Of this amount, $16.1 million was
unassigned.
• The Village’s total capital assets for Governmental and Business-Type activities increased $9.4 million (9.7
percent) as of December 31, 2016.
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, 2016
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 23-30) 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, Street Maintenance, and Facilities Development Funds, which are classified as major
funds. Data on the other three 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 31-40) 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 31-40
of this report.
Fiduciary Funds (see pages 41-42) 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, 2016
like that used for proprietary funds. 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 43-95 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 96-106 of this report.
Government-wide Financial Analysis
The assets and deferred outflows of the Village of Buffalo Grove exceeded liabilities and deferred inflows by $63.3
million as of December 31, 2016. The largest portion of the Village’s net position reflects its investment in capital
assets (137.8 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 ($1.6 million) represents resources that are subject to external
restrictions on how they may be used. $1.5 million is restricted for contractual construction obligations including the
street project that was debt financed. The remaining balance of unrestricted net position ($(25.6) 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 increase in unrestricted net position from the prior year is 1.2 million
(4.9 percent).
The Village’s combined net position decreased by $0.8 million as a result of governmental activities decreasing by
$1.1 million and business-type activities increasing by $0.3 million. The net position of the Village’s governmental
funds was $16.8 million. The Village’s unrestricted net position for governmental activities that are available for day-
to-day financial operations were $(36.6) million compared to $(34.6) million at December 31, 2015. The net position
of business-type activities was $46.5 million. The business type activities unrestricted net position increased by $3.2
million from the previous year.
- 7 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
Please refer to table below for condensed Statement of Net Position:
Table 1
Village of Buffalo Grove’s Net Position
As of December 31, 2016
(in millions)
Governmental Business-Type
Activities Activities Total
2016 2015 2016 2015 2016 2015
Current and Other Assets $46.1 $42.8 $13.1 $10.8 $59.1 $53.6
Capital Assets 61.1 54.6 42.7 39.9 103.9 94.5
Total Assets $107.2 $97.4 $55.8 $50.7 $163.0 $148.1
Deferred Outflows 14.4 12.7 1.0 0.5 15.4 13.2
Long-Term Liabilities 77.4 67.9 1.5 2.7 $78.9 $70.6
Other Liabilities 9.1 6.6 8.7 2.2 17.8 8.8
Total Liabilities $86.5 $74.5 $10.2 $4.9 $96.7 $79.4
Deferred Inflows 18.3 17.7 0.1 0.1 18.4 17.8
Net Position:
Net Investment in Capital Assets $51.8 $50.6 $35.5 $38.4 $87.3 $89.0
Restricted 1.6 1.9 0.0 0.0 1.6 1.9
Unrestricted (36.6) (34.6) 11.0 7.8 (25.6) (26.8)
Total Net Position $16.8 $17.9 $46.5 $46.2 $63.3 $64.1
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.
- 8 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
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 a $(0.8) million decrease in net position for the government
as a whole, $(1.1) million for governmental activities and $0.3 million for business-type activities.
Within the governmental activities, the Village increase in “Current and Other Assets” of $3.3 million is made up of a
$2.6 million increase in cash and equivalents and an investment increase of $0.8 million. 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 may withhold, delay, or reduce tax revenues from the Local
Government Distributive Fund. This strategy is reflected in increase in cash and equivalents. The Village
experienced an increase in receivables for taxes of 0.2 million in 2016 (1.3 percent). Most tax receivables held the
line from 2015 to 2016 with property tax increasing $0.4 million (2.6 percent), and telecom decreasing $0.1 million
(16.4 percent).
The Village continued to invest in itself through capital improvement and asset purchases. Capital assets
government wide increased $9.4 million (9.7 percent). The majority of the assets increases were streets, storm
sewers, water infrastructure and sanitary sewer infrastructure. The business-type activities cash and equivalents
increased $2.4 million (171 percent), was derived from an increase in the rates for those services and the addition of
a storm water utility fee implemented in 2016.
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, 2016 and 2015
Governmental Business-Type Total Primary
Activities Activities Government
Revenues 2016 2015 2016 2015 2016 2015
Program Revenues
Charges for Service 4.7 3.4 13.7 12.9 18.4 16.3
Grants and Contributions
Operating 1.3 1.2 - - 1.3 1.2
Capital - - 0.1 - 0.1 -
General Revenue
Property Tax 15.0 14.7 - - 15.0 14.7
Sales and Use Tax 10.1 9.3 - - 10.1 9.3
Income Tax 4.0 5.4 - - 4.0 5.4
Telecommunications Tax 1.5 1.6 - - 1.5 1.6
Utility Taxes 2.7 2.6 - -
2.7 2.6
Property Transfer Tax 1.1 0.9 - - 1.1 0.9
Other 2.8 2.7 0.2 - 3.0 2.7
Total Revenue 43.2 41.8 14.0 12.9 57.2 54.7
Expenses
Governmental Activities
General Government 6.4 5.9 6.4 5.9
Public Safety 30.5 27.2 30.5 27.2
Public Works 8.1 11.6 8.1 11.6
Interest 0.4 0.3 0.4 0.3
Business Type
Water and Sewer
9.0 8.5 9.0 8.5
Refuse Services 0.7 0.7 0.7 0.7
Golf 2.9 3.3 2.9 3.3
Total Expenses 45.4 45.0 12.6 12.5 58.0 57.5
Excess before transfers and special items (2.2) (3.2) 1.4 0.4 (0.8) (2.8)
Transfers In (Out) 1.1 0.8 (1.1) (0.8) - -
Special items - - - -
Change in Net Position (1.1) (2.4) 0.3 (0.4) (0.8) (2.8)
Net position - beginning (as restated) 17.9 20.3 46.2 46.6 64.1 66.9
Net position – ending 16.8 17.9 46.5 46.2 63.3 64.1
- 10 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
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 $1.1 million to $16.8 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, 2016 are $43.2 million, an
increase of $1.4 million or 3.3 percent. Property taxes continue to be the Village’s largest source of revenue (34.7
percent) at $15.0 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 30.38 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 $22.2 million or 51.4 percent of total
governmental activities revenue.
- 11 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
Property taxes increased by $0.3 million. The increase in the corporate agency tax levy collected in 2016 was 2.0
percent. The 2016 corporate levy, to be collected in 2017, is funding Police and Fire Protection. The Police
Protection levy increased $0.06 million (2.0 percent) and the Fire Protection Levy increased $0.11 million (2.0
percent). The total tax levy increased 2.6 percent in total. The Village abated $0.65 million of bond principle and
interest, which would have increased the tax levy an additional 4.3 percent. The pension levies account for 38.0
percent of the total 2016 Tax Levy.
Sales tax decreased by $0.05 million compared to the previous year. The decrease in sales tax equates to 1.0
percent. Utility taxes are up $0.02 million, or 0.6 percent. The region experienced a warm summer that continued
late into the year leading to higher than normal electric consumption in the fourth quarter. Income and use taxes are
down in 2016 as the state reduced the income tax rate from 5 to 3.75 percent. Income and use tax decreased, in
aggregate, $0.42 million from FY 2015, a 7.7 percent slide. Property transfer taxes continue to trend upward with an
increase of $0.2 million. Income tax, sales tax, and property transfer tax are key indicators for the Village of Buffalo
Grove’s local economy and continue to hold steady year over year.
Expenses:
The cost of all governmental activities this year was $45.4 million resulting in an increase of 0.9 percent from the
previous year ($45.0 million). Public Works reduced expenditures $3.5 million in 2016. Public Safety expenditures
grew by $3.3 million (13.0 percent) for a total of $30.5 million dollars.
11% 3%
35%
23%
9%
3% 6% 3%
7%
Village of Buffalo Grove 2016 Revenue by Source Govenmental
Activities
Charges for Service
Grants and Contributions
Property Tax
Sales and Use Tax
Income Tax
Telecommunication
Utility Tax
Property Transfer Tax
Other Taxes
14%
67%
18%
1%
Village of Buffalo Grove 2016 Expenditure by Function
Governemntal Activities Expenditures
General Government
Public Safety
Public Works
Interest
- 12 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
The Statement of Activities on pages 21-22 shows that $4.7 million in revenue was generated to finance for the
services rendered by those who use them. Another $1.3 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 $0.3 million. Significant changes are noted below.
Revenue:
Water sales increased $.8 million from the previous year. The average amount of water consumed in 2016 was
about 8,083 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 $2.2 million in 2016,
which is consistent with the 2015 revenue earnings. The following graph shows a comparison of revenues and
expenses for each business type activity (less depreciation and operating transfers).
Expenses:
Operating expenses from all business-type activities increased by $0.04 million or 0.3 percent. The Water Fund
expenses increased by $0.5 million due to capital maintenance. Golf expenses decreased by $0.4 million which
reflects the savings of outsourcing maintenance at both courses.
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
12
Water Fund Refuse Fund Arboretum Golf Buffalo Grove Golf
Village of Buffalo Grove 2016 Business Type Activities
Revenues and Expenditures
Revenues
Expenditures
- 13 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
The Village’s governmental funds for the year ended December 31, 2016 reflect a combined fund balance of $22.8
million on its balance sheet (pages 25-26). This represents a $1.3 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 $22.8 million, $12.3 million is
unassigned indicating availability for future obligations.
The 2016 unassigned fund balance increased by $1.0 million. This was achieved through oversight of the budget and
a surplus which is noted by the increase in cash and investments on the balance sheet. Nonspendable fund balance
($.17 million) represents amounts set aside for inventory, deposits, and prepaid items. Restricted fund balance ($1.9
million) is allocated to capital projects and employee pension benefits. Committed fund balance ($8.5 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 is useful to review
the liquidity of the fund by comparing the unassigned fund balance against the General Fund operating budget. As of
December 31, 2016, the unassigned fund balance represents 54.3 percent of the FY 2017 operating budget (less
transfers). The General Fund, fund balance increased by $1.7 million from the previous fiscal year. A majority of the
growth was generated through budget management.
The General Fund’s revenues increased by $1.3 million in 2016. Sales tax decreased 1 percent, while the reduction
of the state income tax rate from 5 to 3.75 percent was reflected in the decrease of $0.5 million. The housing stock
continues to turn over in the Village as real estate transfer tax continues its uptick for the fourth consecutive year.
Charges for services increased $0.2 million (15.4 percent) and Fines and Fees followed suit, up $1.1 million.
Property Tax revenue grew $.3 million while Interest Income increased 161.8 percent in 2016 due to the market
rebounding and providing more value in its offerings. Miscellaneous Income and Licensing and Permits both
decreased in 2016 from the previous year actuals. The overall growth in the General Fund of 3.3 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.
0246810121416
Village of Buffalo Grove 2016 General Fund Revenue
2016
2015
- 14 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
General Fund expenditures increased by $2.0 million or 5.6 percent. The surplus of revenues over expenditures was
$2.8 million. Adding in the Other Financing Sources (Uses), the net change to fund balance resulted in an increase of
$1.8 million. Public safety expenditures increased $2.2 million, 8.73 percent, in FY 2016. The general government
expenditures increased $0.6 million (12.2 percent) while public works was able to reduce their expenditures $0.8
million (12.7 percent).
Special Revenue Funds have a combined fund balance of $1.6 million as of December 31, 2016 down $0.2 million
from December 31, 2015. In 2016 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) Fund, the Capital Projects Street Maintenance Fund, grant revenues, and a debt service issuance of $6.1
million in 2016. Revenues received from the state share of the Motor Fuel Tax were $1.1 million. The cost of the
2016 street maintenance program was $8.8 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 $7.5 million and
the Village had access to $1.1 million in MFT funds. Some street projects are not complete as of December 31,
2016, the remainder will be expended in FY 2017. 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 2016. The Debt Service Fund is not designed to
carry a fund balance nor generate more revenue than is needed for the current year tax levy. The Village Debt totals
$15.6 million as of December 31, 2016. All Village bond issues are general obligation bonds, $.53 million in principal
was retired in the current year. The interest paid associated with the debt retired was $369,540. Debt per capita is
$376.87 as of December 31, 2016. The Village has the sixth lowest total outstanding debt amongst all the taxing
bodies represented on the 2016 Lake and Cook County property tax bill.
0
5
10
15
20
25
30
General Government Public Safety Public Works
Village of Buffalo Grove 2016 General Fund Expenditures
2016
2015
- 15 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
The Village’s Capital Improvement plan continued in 2016. The Village expended over $0.8 million from the Facilities
Development Fund for infrastructure. The Water and sewer funds added $4.8 million to the capital asset bottom line.
Vehicles and Equipment increased $0.7 million over FY 2016 through fleet replacements.
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 $1.6 million for FY
2016, an increase of $0.6 million (65.2 percent) over the prior fiscal year. A rate increase of 4 percent was applied to
all usage after January 1, 2016. Sewer operations accounted for 43.3 percent, or $3.9 million, of the total Water and
Sewer operational expenditures. Water operations accounted for almost half of that at $2.0 million (22.2 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 2016. These two pass through expenditures account for 52.2 percent of the total operating
expense of the fund.
Non-operating revenue (expense) increased $0.1 million due to an intergovernmental grant.
The unrestricted net position of the Water and Sewer Fund at the end of the current fiscal year was $10.0 million. Of
that amount $6.8 million is the Village’s equity interest in the Northwest Water Commission and $0.5 million is
invested and 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
$(37,106). Total revenues were down $0.05 million compared to 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 53,599
paid rounds were played between the two courses in 2016.
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.
- 16 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
General Fund Budgetary Highlights
For the Fiscal Year Ended December 31, 2016
(in thousands)
Budget
Actual
Revenues and Transfers:
Taxes
35,713
34,930
Fines and Fees
3.837
4,322
Licenses and permits
285
326
Other Revenues
1,016
1,669
Transfers in
864
1,158
Total Revenues and Transfers
41,714
42,404
Expenditures and Transfers
Expenditures
39,590
38,496
Transfers Out
2,080
2,154
Total expenditures and Transfers 41,670
40,650
Change in fund balance
44
1,754
Revenue performed better than expected due a high rate of collection on fines and fees and an increase in other
revenue. Actual expenditures came in below budget due to budget management strategy and outsourcing.
Capital Assets
At the end of December 31, 2016, the Village had a combined total of capital assets of $103.81 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 $9.21 million.
Village of Buffalo Grove Capital Assets at Year End
Net of Depreciation
As of December 31, 2016 (in millions)
Governmental Business-Type
Activities Activities Total
2016 2015 2016 2015 2016 2015
Land 36.90 35.96 6.2 6.2 43.10 42.16
Construction in progress 1.44 .76 .05 4.12 1.49 4.88
Land Improvements 2.83 2.17 . . 2.83 2.17
Buildings 3.34 2.70 1.71 2.12 5.05 4.82
Equipment and Vehicles 4.24 3.54 . . 4.24 3.54
Streets and storm sewers 12.30 9.52 . . 12.30 9.52
Water and Sewer Infrastructure . . 34.80 27.51 34.80 27.51
Total 61.05 54.65 42.76 39.95 103.81 94.60
- 17 -
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2016
The Governmental Activities net capital assets increased from last year by $6.4 million (11.7 percent). For the
Business-type activities, the net capital assets increased by $2.81 million or (7.0 percent).
The most significant capital activity was through the road program. The Village issued $6.1 million in general
obligation bonds to fund much needed road rebuild that included replacing water mains, storm sewer, and sanitary
sewer. Financing the replacement of the roads allows the Village to avoid rebuilding those roads before they
completely fail, which would be a more costly replacement in the future.
Detailed information on the Village’s capital assets is included in Note 3 section C on pages 65-66 .
At year end, the Village had total bonded debt outstanding of $15.6 million as shown in the next table:
Village of Buffalo Grove General Obligation Bonds
As of December 31, 2016 and 2015
(in millions)
Governmental Business-Type
Activities Activities Total
2016 2015 2016 2015 2016 2015
General obligation bonds $15.64 $10.04 $ - $ - $15.64 $10.04
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 $376.87 and represents 1.04 percent
of the total assessed value of the 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 69-72.
Economic Factors and Next Year’s Budgets and Rates
The Village entered 2017 with a balanced operating budget. The budget for the fiscal year beginning January 1,
2017, is $75,120,613 a 0.3 percent increase from the previous year. The operating budget totals $42,002,395
resulting in a 0.8 percent increase over the previous year. Total capital spending during the year is estimated to be
$8.0 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, 2016
Property taxes remain the Village’s most stable revenue although the total assessed value of all taxable property is
expected to increase about 1.5 percent for the 2016 tax levy (extended and collected in 2017). A tax levy was
adopted for the 2017 budget that was 2.6 percent over the last year’s request. The growth in the levy almost entirely
matches the additional funds needed for the 2016 bond issue. 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 2016 and subsequently a water and sewer rate
recommendation was made, and adopted, that will increase water rates by 4 percent in 2017.
A Storm Water Management User Fee was introduced in the FY 2016 budget. This user fee 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. A twenty-year proforma was completed to show the
estimated cost and replacement of storm sewer infrastructure and revenue generated from the new fee.
Budgeted expenditures include general wage adjustment for non-represented employees and contractual salary
adjustments which are part of labor agreements. The Village currently 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 2017.
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, 2016
Governmental
Activities
Business-type
Activities Totals
ASSETS
Cash and equivalents $22,027,112 $3,743,976 $25,771,088
Investments 2,684,462 505,125 3,189,587
Receivables
Property taxes 15,594,223 -15,594,223
Accounts - water and sewer -1,591,948 1,591,948
Municipal sales tax 2,746,351 -2,746,351
Illinois income tax 1,124,315 -1,124,315
Motor fuel tax 98,440 -98,440
Telecommunications tax 365,568 -365,568
Food and beverage tax 75,366 -75,366
Utility tax 265,786 -265,786
Interest 7,782 312 8,094
Other 822,945 370,934 1,193,879
Inventories 79,667 33,318 112,985
Prepaid items 60,000 -60,000
Due from fiduciary funds 84,936 -84,936
Deposits 28,290 -28,290
Investment in joint venture -6,846,607 6,846,607
Internal balances 38,947 (38,947)-
Capital Assets
Land 36,896,667 6,198,514 43,095,181
Construction in progress 1,443,830 50,114 1,493,944
Buildings 24,224,501 10,337,636 34,562,137
Land improvements 3,242,060 1,966,488 5,208,548
Equipment and vehicles 11,477,792 94,510 11,572,302
Streets and storm sewers 61,291,877 -61,291,877
Water and sewer system infrastructure -70,758,397 70,758,397
Less: Accumulated depreciation (77,529,175)(46,651,081)(124,180,256)
Total Assets 107,151,742 55,807,851 162,959,593
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 57,331 -57,331
Deferred outflows of resources related to pensions 14,349,267 1,001,686 15,350,953
Total Deferred Outflows of Resources 14,406,598 1,001,686 15,408,284
LIABILITIES
Accounts payable 3,377,930 1,018,931 4,396,861
Accrued wages 462,550 38,139 500,689
State withholding taxes payable 35,961 -35,961
Development deposits 298,482 144,137 442,619
Due to fiduciary funds 105,570 -105,570
Short term notes payable 3,400,000 -3,400,000
Other 988 18,174 19,162
Noncurrent Liabilities
Due within one year 1,407,861 285,891 1,693,752
Due in more than one year 77,395,547 8,673,976 86,069,523
Total Liabilities 86,484,889 10,179,248 96,664,137
See accompanying notes to financial statements.
Page 19
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
As of December 31, 2016
Governmental
Activities
Business-type
Activities Totals
DEFERRED INFLOWS OF RESOURCES
Property taxes levied for a future period $15,594,223 $-$15,594,223
Deferred inflows of resources related to pensions 2,681,990 101,393 2,783,383
Total Deferred Inflows of Resources 18,276,213 101,393 18,377,606
NET POSITION
Net investment in capital assets 51,756,933 35,494,070 87,251,003
Restricted for
Road construction 1,539,455 -1,539,455
Parking lot operations 93,479 -93,479
Unrestricted (36,592,629)11,034,826 (25,557,803)
TOTAL NET POSITION $16,797,238 $46,528,896 $63,326,134
See accompanying notes to financial statements.
Page 20
VILLAGE OF BUFFALO GROVE
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2016
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental Activities
General government $6,441,707 $1,855,506 $-$-
Public safety 30,528,127 1,718,647 225,217 -
Public works 7,099,195 1,151,594 1,056,515 -
Buildings and grounds 979,679 ---
Interest and fiscal charges 356,799 ---
Total Governmental Activities 45,405,507 4,725,747 1,281,732 -
Business-type Activities
Water and Sewerage 9,001,632 10,304,638 -94,326
Refuse Service 703,565 1,135,748 --
Arboretum Golf 1,710,697 1,193,609 --
Buffalo Grove Golf 1,175,707 1,047,259 --
Total Business-type Activities 12,591,601 13,681,254 -94,326
Total $57,997,108 $18,407,001 $1,281,732 $94,326
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
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
$(4,586,201)$-$(4,586,201)
(28,584,263)-(28,584,263)
(4,891,086)-(4,891,086)
(979,679)-(979,679)
(356,799)-(356,799)
(39,398,028)-(39,398,028)
-1,397,332 1,397,332
-432,183 432,183
-(517,088)(517,088)
-(128,448)(128,448)
-1,183,979 1,183,979
(39,398,028)1,183,979 (38,214,049)
15,034,583 -15,034,583
3,508,292 -3,508,292
1,513,254 -1,513,254
2,659,554 -2,659,554
1,115,360 -1,115,360
906,574 -906,574
5,587,179 -5,587,179
4,994,426 -4,994,426
203,929 -203,929
65,600 14,159 79,759
1,385 -1,385
1,596,806 249,946 1,846,752
37,186,942 264,105 37,451,047
1,062,190 (1,062,190)-
(1,148,896)385,894 (763,002)
17,946,134 46,143,002 64,089,136
$16,797,238 $46,528,896 $63,326,134
See accompanying notes to financial statements.
Page 22
VILLAGE OF BUFFALO GROVE
BALANCE SHEET
GOVERNMENTAL FUNDS
As of December 31, 2016
General Fund
Facilities
Development
Street
Maintenance
Nonmajor
Governmental
Funds
ASSETS
Cash and equivalents $19,921,405 $-$-$1,826,976
Investments 2,684,462 ---
Receivables
Property taxes 14,574,329 --1,019,894
Municipal sales tax 2,746,351 ---
Illinois income tax 1,124,315 ---
Motor fuel tax ---98,440
Telecommunication tax 365,568 ---
Food and beverage tax 75,366 ---
Utility tax 265,786 ---
Interest 7,782 ---
Other 687,300 -135,645 -
Due from other funds 334,751 ---
Due from fiduciary funds 84,936 ---
Inventory 79,667 ---
Deposits 28,290 ---
Prepaid items 60,000 ---
TOTAL ASSETS $43,040,308 $-$135,645 $2,945,310
See accompanying notes to financial statements.
Page 23
Totals
$21,748,381
2,684,462
15,594,223
2,746,351
1,124,315
98,440
365,568
75,366
265,786
7,782
822,945
334,751
84,936
79,667
28,290
60,000
$46,121,263
See accompanying notes to financial statements.
Page 24
VILLAGE OF BUFFALO GROVE
BALANCE SHEET
GOVERNMENTAL FUNDS
As of December 31, 2016
General Fund
Facilities
Development
Street
Maintenance
Nonmajor
Governmental
Funds
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $2,480,523 $86,986 $284,805 $292,482
Accrued wages 430,707 ---
Development deposits 298,482 ---
Due to fiduciary funds 105,570 ---
Due to other funds 61,794 139,211 57,190 27,417
Payroll deductions payable 35,961 ---
Short-term notes payable -3,400,000 --
Total Liabilities 3,413,037 3,626,197 341,995 319,899
Deferred Inflows of Resources
Property taxes levied for a future period 14,574,329 --1,019,894
Total Deferred Inflows of Resources 14,574,329 --1,019,894
Fund Balances (Deficit)
Nonspendable for inventory 79,667 ---
Nonspendable for deposits 28,290 ---
Nonspendable for prepaid items 60,000 ---
Restricted for road construction ---1,539,455
Restricted for employee pension
benefits 229,953 ---
Restricted for parking lot operations ---93,479
Committed for capital replacement 8,511,306 ---
Unassigned (deficit)16,143,726 (3,626,197)(206,350)(27,417)
Total Fund Balances (deficit)25,052,942 (3,626,197)(206,350)1,605,517
TOTAL LIABILITIES,
DEFERRED INFLOWS OF
RESOURCES, AND FUND
BALANCES $43,040,308 $-$135,645 $2,945,310
See accompanying notes to financial statements.
Page 25
Totals
$3,144,796
430,707
298,482
105,570
285,612
35,961
3,400,000
7,701,128
15,594,223
15,594,223
79,667
28,290
60,000
1,539,455
229,953
93,479
8,511,306
12,283,762
22,825,912
$46,121,263
See accompanying notes to financial statements.
Page 26
VILLAGE OF BUFFALO GROVE
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
As of December 31, 2016
Total Fund Balances - Governmental Funds $22,825,912
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 36,896,667
Construction in progress 1,443,830
Buildings 24,224,501
Land Improvements 3,242,060
Equipment and vehicles 11,477,792
Streets and storm sewers 61,291,877
Less: Accumulated depreciation (77,529,175)
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.57,331
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the Governmental Funds Balance Sheet.14,349,267
Less amount reported in internal service funds below.(749,278)
Deferred inflows of resources related to pensions do not relate to current financial
resources and are not reported in the Governmental Funds Balance Sheet.(2,681,990)
Less amount reported in internal service funds below.75,844
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 (15,640,000)
Compensated absences (1,518,278)
Net other post-employment obligation (969,738)
Unamortized debt premium (241,408)
Net pension liability (60,433,984)
Less amount reported in internal service funds below.1,168,445
The net position of the internal service funds are included in the governmental
activities in the Statement of Net Position (492,437)
NET POSITION OF GOVERNMENTAL ACTIVITIES $16,797,238
See accompanying notes to financial statements.
Page 27
VILLAGE OF BUFFALO GROVE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2016
General
Facilities
Development
Street
Maintenance
Nonmajor
Governmental
Funds
REVENUES
Property taxes $14,441,210 $-$-$593,373
Other taxes 9,701,271 ---
Charges for services 1,503,266 --1,134
Fines and fees 2,818,888 --206,740
Licenses and permits 326,177 ---
Intergovernmental 10,787,297 --1,056,515
Interest 65,600 ---
Miscellaneous income 1,602,527 --8,219
Total Revenues 41,246,236 --1,865,981
EXPENDITURES
Current
General government 5,529,349 --163,793
Public safety 27,407,019 ---
Public works 5,559,733 -135,955 1,282,619
Capital Outlay -846,993 7,405,611 -
Debt Service
Principal ---525,000
Interest ---371,456
Total Expenditures 38,496,101 846,993 7,541,566 2,342,868
Excess (deficiency) of revenues over
expenditures 2,750,135 (846,993)(7,541,566)(476,887)
OTHER FINANCING SOURCES (USES)
Sales of capital assets 1,385 ---
General obligation debt issued --6,125,000 -
Transfers in 1,157,065 928,356 1,049,727 267,447
Transfers out (2,154,537)-(87,447)(12,000)
Premium on debt issued --100,778 -
Total Other Financing Sources (Uses)(996,087)928,356 7,188,058 255,447
Net Change in Fund Balances 1,754,048 81,363 (353,508)(221,440)
FUND BALANCES (DEFICIT) - Beginning of
Year 23,298,894 (3,707,560)147,158 1,826,957
FUND BALANCES (DEFICIT) - END OF
YEAR $25,052,942 $(3,626,197)$(206,350)$1,605,517
See accompanying notes to financial statements.
Page 28
Totals
$15,034,583
9,701,271
1,504,400
3,025,628
326,177
11,843,812
65,600
1,610,746
43,112,217
5,693,142
27,407,019
6,978,307
8,252,604
525,000
371,456
49,227,528
(6,115,311)
1,385
6,125,000
3,402,595
(2,253,984)
100,778
7,375,774
1,260,463
21,565,449
$22,825,912
See accompanying notes to financial statements.
Page 29
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, 2016
Net change in fund balances - total governmental funds $1,260,463
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 8,604,115
Depreciation is reported in the government-wide financial statements (2,193,260)
Net effect of certain miscellaneous adjustments to capital assets (12,723)
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.
Debt issued (6,125,000)
Principal repaid 525,000
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
Premium on bonds sold (100,778)
Amortization of bond premium 21,823
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 (165,587)
Net other post employment benefit obligation (210,765)
Net pension liability (4,279,112)
Deferred outflows of resources due to pensions 1,679,526
Deferred inflows of resources due to pensions (148,006)
Amortization of deferred charge on refunding (7,166)
Less amount reported in internal service funds below.63,108
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.(60,534)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $(1,148,896)
See accompanying notes to financial statements.
Page 30
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of December 31, 2016
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
ASSETS
Current Assets
Cash and equivalents $2,464,597 $-$1,279,379 $3,743,976
Investments 505,125 --505,125
Receivables
Accounts - water and sewer 1,591,948 --1,591,948
Interest 312 --312
Other 208,855 176 161,903 370,934
Due from other funds -41,532 20,262 61,794
Inventory -13,863 19,455 33,318
Total Current Assets 4,770,837 55,571 1,480,999 6,307,407
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 37,310 -12,804 50,114
Buildings and improvements -8,474,799 1,862,837 10,337,636
Machinery, equipment and
furnishings --94,510 94,510
Water and sewer infrastructure 70,758,397 --70,758,397
Less: Accumulated depreciation (35,955,397)(8,405,303)(2,290,381)(46,651,081)
Other Assets
Investment in joint venture 6,846,607 --6,846,607
Total Noncurrent Assets 41,686,917 6,805,285 1,108,983 49,601,185
Total Assets 46,457,754 6,860,856 2,589,982 55,908,592
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions 748,242 59,092 194,352 1,001,686
Total Deferred Outflows of Resources 748,242 59,092 194,352 1,001,686
See accompanying notes to financial statements.
Page 31
Governmental
Activities -
Internal
Service Funds
$278,731
-
-
-
-
-
-
278,731
-
-
-
-
-
-
-
-
-
278,731
749,278
749,278
See accompanying notes to financial statements.
Page 32
VILLAGE OF BUFFALO GROVE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of December 31, 2016
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
LIABILITIES
Current Liabilities
Accounts payable 920,046 7,925 90,960 1,018,931
Accrued wages 31,410 1,492 5,237 38,139
Other -1,119 17,055 18,174
Development deposits 44,137 -100,000 144,137
Due to other funds 51,614 43,103 6,024 100,741
IEPA loan payable 17,828 --17,828
Compensated absences 5,620 -6,395 12,015
Installment note payable - current 256,048 --256,048
Other current liabilities ----
Total Current Liabilities 1,326,703 53,639 225,671 1,606,013
Noncurrent Liabilities
Long-Term Debt
Compensated absences 58,605 -66,682 125,287
IEPA loan payable 348,233 --348,233
Net pension liability 1,166,830 92,149 303,078 1,562,057
Installment note payable - long term 6,638,399 --6,638,399
Total Noncurrent Liabilities 8,212,067 92,149 369,760 8,673,976
Total Liabilities 9,538,770 145,788 595,431 10,279,989
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 75,739 5,981 19,673 101,393
Total Deferred Inflows of Resources 75,739 5,981 19,673 101,393
NET POSITION
Net investment in capital assets 27,579,802 6,805,285 1,108,983 35,494,070
Unrestricted (deficit)10,011,685 (37,106)1,060,247 11,034,826
TOTAL NET POSITION $37,591,487 $6,768,179 $2,169,230 $46,528,896
See accompanying notes to financial statements.
Page 33
Governmental
Activities -
Internal
Service Funds
233,134
31,843
-
-
10,192
-
-
-
988
276,157
-
-
1,168,445
-
1,168,445
1,444,602
75,844
75,844
-
(492,437)
$(492,437)
See accompanying notes to financial statements.
Page 34
VILLAGE OF BUFFALO GROVE
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
OPERATING REVENUES
Water and sewer charges $10,129,149 $-$-$10,129,149
Daily greens fee and memberships -750,853 685,129 1,435,982
Merchandise sales -58,066 70,139 128,205
Connection and recapture fees 175,489 --175,489
Cart, club, and other rentals -234,655 208,299 442,954
Driving range fees --58,014 58,014
SW ANCC user fees --1,135,748 1,135,748
Miscellaneous 249,946 150,035 25,678 425,659
Internal service contributions ----
Total Operating Revenues 10,554,584 1,193,609 2,183,007 13,931,200
OPERATING EXPENSES
Water operations 1,739,505 --1,739,505
Sewer operations 3,911,630 --3,911,630
Water purchases 1,663,914 --1,663,914
Golf operations -1,203,530 1,090,783 2,294,313
Cost of sales - pro shop -50,058 52,140 102,198
Refuse operations --703,565 703,565
Loss from joint venture 57,767 --57,767
Depreciation 1,342,484 457,109 32,784 1,832,377
Internal service fund expenses ----
Total Operating Expenses 8,715,300 1,710,697 1,879,272 12,305,269
Operating Income (Loss)1,839,284 (517,088)303,735 1,625,931
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - grants 94,326 --94,326
Interest revenue 14,159 --14,159
Interest expense (286,332)--(286,332)
Total Nonoperating Revenues
(Expenses)(177,847)--(177,847)
Income (Loss) Before Transfers 1,661,437 (517,088)303,735 1,448,084
TRANSFERS
Transfers in -202,095 174,359 376,454
Transfers out (1,037,644)(55,400)(345,600)(1,438,644)
Total Transfers (1,037,644)146,695 (171,241)(1,062,190)
Change in Net Position 623,793 (370,393)132,494 385,894
NET POSITION (DEFICIT) - Beginning of Year 36,967,694 7,138,572 2,036,736 46,143,002
NET POSITION (DEFICIT) - END OF
YEAR $37,591,487 $6,768,179 $2,169,230 $46,528,896
See accompanying notes to financial statements.
Page 35
Governmental
Activities -
Internal
Service Funds
$-
-
-
-
-
-
-
-
3,720,374
3,720,374
-
-
-
-
-
-
-
-
3,694,487
3,694,487
25,887
-
-
-
-
25,887
-
(86,421)
(86,421)
(60,534)
(431,903)
$(492,437)
See accompanying notes to financial statements.
Page 36
VILLAGE OF BUFFALO GROVE
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
Business-type Activities - Enterprise Funds
Water and
Sewerage
Arboretum
Golf
Nonmajor
Enterprise
Funds Totals
CASH FLOWS FROM OPERATING
AC TIVITIES
Received from customers $10,485,118 $1,208,355 $2,216,768 $13,910,241
Received from interfund charges ----
Paid to suppliers for goods and services (7,013,748)(1,131,540)(1,257,980)(9,403,268)
Paid to employees for services (1,256,669)(222,317)(428,954)(1,907,940)
Net Cash Flows From Operating
Activities 2,214,701 (145,502)529,834 2,599,033
CASH FLOWS FROM INVESTING
AC TIVITIES
Investments sold and matured (10,680)--(10,680)
Interest income 19,995 --19,995
Net Cash Flows From Investing
Activities 9,315 --9,315
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in -202,095 174,359 376,454
Transfers (out)(1,023,742)(15,297)(343,576)(1,382,615)
Net Cash Flows From Noncapital
Financing Activities (1,023,742)186,798 (169,217)(1,006,161)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Cash received from capital grants 94,326 --94,326
Purchase of capital assets (4,664,684)(53,277)(18,988)(4,736,949)
Water installment note proceeds received 5,777,400 --5,777,400
Water installment note principal paid (76,552)--(76,552)
Water installment note interest paid (277,630)--(277,630)
IEPA loan principal paid (17,426)--(17,426)
IEPA loan interest paid (8,702)--(8,702)
Net Cash Flows From Capital and
Related Financing Activities 826,732 (53,277)(18,988)754,467
Net Change in Cash and Cash
Equivalents 2,027,006 (11,981)341,629 2,356,654
CASH AND CASH EQUIVALENTS - Beginning
of Year 437,591 11,981 937,750 1,387,322
CASH AND CASH EQUIVALENTS - END
OF YEAR $2,464,597 $-$1,279,379 $3,743,976
See accompanying notes to financial statements.
Page 37
Governmental
Activities -
Internal
Service Funds
$-
3,720,374
(2,136,347)
(1,368,381)
215,646
-
-
-
-
(76,229)
(76,229)
-
-
-
-
-
-
-
-
139,417
139,314
$278,731
See accompanying notes to financial statements.
Page 38
VILLAGE OF BUFFALO GROVE
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended December 31, 2016
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)$1,839,284 $(517,088)$303,735 $1,625,931
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 1,342,484 457,109 32,784 1,832,377
Loss on joint venture 57,767 --57,767
Changes in assets and liabilities
Accounts receivable (69,466)14,746 33,761 (20,959)
Accounts payable (1,047,502)(69,624)54,216 (1,062,910)
Accrued salaries 16,287 806 2,224 19,317
Deposits -2,999 100,000 102,999
Compensated absences 9,152 -13,728 22,880
Deferred outflows - pensions (417,665)(2,281)(86,890)(506,836)
Deferred inflows - pensions (24,711)(11,281)(12,981)(48,973)
Net pension liability 509,071 (20,888)89,257 577,440
NET CASH FLOWS FROM
OPERATING ACTIVITIES $2,214,701 $(145,502)$529,834 $2,599,033
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
See accompanying notes to financial statements.
Page 39
Governmental
Activities -
Internal
Service Funds
$25,887
-
-
-
109,779
16,872
-
-
(415,399)
(25,609)
504,116
$215,646
See accompanying notes to financial statements.
Page 40
VILLAGE OF BUFFALO GROVE
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
As of December 31, 2016
Pension Trusts Agency Fund
ASSETS
Cash $1,722,664 $253,494
Investments
U.S. treasuries 12,663,886 -
U.S. agencies 20,725,251 -
Mutual funds - other than bond funds 38,661,792 -
Equity securities 29,132,573 -
Municipal bonds 3,213,043 -
Corporate bonds 7,448,510 -
Receivables
Interest 198,320 -
Prepaid items 5,838 -
Due from primary government 105,570 -
Total Assets 113,877,447 253,494
LIABILITIES
Accounts payable 86,297 -
Due to primary government 84,936 -
Due to other governments -253,494
Total Liabilities 171,233 253,494
NET POSITION
Restricted for pensions $113,706,214 $-
See accompanying notes to financial statements.
Page 41
VILLAGE OF BUFFALO GROVE
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended December 31, 2016
Pension Trusts
AD DITIONS
Contributions
Employer $4,596,057
Plan members 1,138,620
Total Contributions 5,734,677
Investment income
Interest 728,190
Net appreciation in fair value of investments 6,426,856
Total Investment Income 7,155,046
Less Investment expense 321,419
Net Investment Income 6,833,627
Total Additions 12,568,304
DEDUCTIONS
Administration 86,253
Pension benefits and refunds 5,508,953
Total Deductions 5,595,206
Change in Net Position 6,973,098
NET POSITION - Beginning of Year 106,733,116
NET POSITION - END OF YEAR $113,706,214
See accompanying notes to financial statements.
Page 42
VILLAGE OF BUFFALO GROVE
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE Page
I Summary of Significant Accounting Policies 44
A.Reporting Entity 44
B.Government-W ide and Fund Financial Statements 45
C.Measurement Focus, Basis of Accounting, and Financial Statement
Presentation 48
D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources, and Net Position or Equity 49
1.Deposits and Investments 49
2.Receivables 53
3.Inventories and Prepaid Items 54
4.Capital Assets 54
5.Deferred Outflows of Resources 55
6.Compensated Absences 55
7.Long-Term Obligations 55
8.Deferred Inflows of Resources 56
9. Equity Classifications 56
II Stewardship, Compliance, and Accountability 58
A.Excess Expenditures Over Appropriations 58
B.Deficit Balances 58
III Detailed Notes on All Funds 59
A.Deposits and Investments 59
B.Receivables 64
C.Capital Assets 65
D.Interfund Receivables/Payables and Transfers 67
E.Short-Term Debt Activity 69
F.Long-Term Obligations 69
G.Lease Disclosures 73
IV Other Information 73
A.Employees' Retirement System 73
B.Risk Management 87
C.Commitments and Contingencies 87
D.Joint Ventures 88
E.Other Postemployment Benefits 90
F.Tax Abatement 93
G.Effect of New Accounting Standards on Current-Period Financial Statements 95
Page 43
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 44
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
In February 2015, the GASB issued statement No. 72 - Fair Value Measurement and Application. This
statement addresses accounting and financial reporting issues related to fair value measurements. It
defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. This standard was
implemented January 1, 2016.
In August 2015, the GASB issued statement No. 77 - Tax Abatement Disclosures. This statement
addresses financial reporting related to tax abatement programs. It establishes requirements for
disclosures about a reporting government's own tax abatements agreements and agreements entered into
by other governments that reduce the reporting government's tax revenues. This standard was
implemented January 1, 2016.
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.
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 45
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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.
Street Maintenance 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.
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 46
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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
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 Funds - 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
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
Page 47
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
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.
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.
Page 48
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.)
Fund Financial Statements (cont.)
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.
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.
Page 49
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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.)
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%0.00%
Fixed income 33%4.50%
Large cap domestic equities 52%4.75%
Small cap domestic equities 5%5.00%
International equities 5%5.50%
Real estate 3%3.75%
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.
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:
Page 50
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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.)
Asset Class Target
Long-Term
Expected Real
Rate of Return
U.S. treasury bills/notes/bonds 15%1.25%
U.S. government agency securities (non-MBS)17.5%1.25%
U.S. government agency securities - callable 10%1.25%
U.S. government agency securities (MBS)2.5%1.25%
Taxable municipal securities 5%1.25%
U.S. large company stocks 35%6.45%
U.S. small company stocks 10%8.45%
International stocks 5%6.75%
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 2016 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.
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.
Page 51
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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.)
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.
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.
Page 52
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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.)
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. Investment in IMET's 1-3 year fund
may be redeemed with 5 business days' notice.
See Note III. A. for further information.
2.Receivables
Property taxes for levy year 2016 attaches as an enforceable lien on January 1, 2016, 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 2015 are prepared by Cook County and issued on or about February 1, 2016 and
July 1, 2016, and are payable in two installments, on or about March 1, 2016 and August 1, 2016 or within
30 days of the tax bills being issued.
Tax bills for levy year 2015 are prepared by Lake County and issued on or about June 1, 2016 and August
1, 2016, and are payable in two installments, on or about July 1, 2016 and September 1, 2016 or within 30
days of the tax bills being issued.
The counties collect such taxes and remits them periodically. The 2016 property tax levy is recognized as
a receivable and deferred inflow in fiscal 2016. As the taxes become available to finance current
expenditures, they are recognized as revenues. At December 31, 2016, the property taxes receivable and
related deferred inflows consisted of the estimated amount collectible from the 2016 levy.
Page 53
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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.)
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 and Prepaid Items
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. The cost of inventory is recorded as expenditures/expenses when consumed rather than
when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. The cost of prepaid items are
recorded as expenditures/expenses when consumed rather than when purchased.
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 54
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 55
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 56
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $9,897,713, and is included in unassigned General Fund fund balance.
Page 57
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.EXCESS EXPENDITURES OVER APPROPRIATIONS
Funds
Budgeted
Expenditures
Actual
Expenditures
Excess
Expenditures Over
Budget
Motor Fuel Tax $1,000,000 $1,282,619 $282,619
Debt Service 810,063 896,456 86,393
Street Maintenance 1,049,727 7,541,566 6,491,839
Firefighters' Pension 2,006,491 2,267,694 261,203
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, 2016, the following individual funds held a deficit balance:
Funds Amount Reason
Debt Service $(27,417)Expenditures exceeded revenues
Facilities Development (3,626,197)Expenditures exceeded revenues
Street Maintenance (206,350)Expenditures exceeded revenues
Central Garage (291,058)Expenses exceeded revenues
Building Maintenance (201,379)Expenses exceeded revenues
Page 58
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $9,893,811 $9,996,646 Custodial Credit Risk -
Deposits
Money market mutual funds 1,940,010 1,940,010 Credit Risk
Illinois Funds 9,105,056 8,605,056 Credit Risk
IMET - money market 2,146,322 2,146,322 Credit Risk
IMET - 1-3 year fund 4,659,348 4,659,348 Credit Risk, Custodial
Credit Risk - Investments,
Interest Rate Risk
U.S. treasuries 12,663,886 12,663,886 Custodial Credit Risk -
Investments, Interest
Rate Risk
U.S. agencies 22,660,500 22,660,500 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Mutual funds - other than bond funds 38,661,792 38,661,792 N/A
Equity securities 29,132,573 29,132,573 Custodial Credit Risk -
Investments,
Concentration of Credit
Risk
Municipal bonds 4,467,380 4,467,380 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Corporate bonds 7,448,510 7,448,510 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Petty cash 2,700 -N/A
Total Deposits and Investments $142,781,888 $142,382,023
Page 59
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $25,771,088
Investments 3,189,587
Per statement of net position - fiduciary
funds
Cash - pension trusts 1,722,664
Cash - agency 253,494
U.S. treasuries 12,663,886
U.S. agencies 20,725,251
Mutual funds - other than bond funds 38,661,792
Equity securities 29,132,573
Municipal bonds 3,213,043
Corporate bonds 7,448,510
Total Deposits and Investments $142,781,888
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.
The Village categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
Page 60
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
The valuation methods for recurring fair value measurements are as follows:
As of December 31, 2016, the Village's investments were measured using the market valuation method
and valuation inputs as follows:
Village
December 31, 2016
Investment Type Level 1 Level 2 Level 3 Total
U.S. agencies $-$1,935,249 $-$1,935,249
Municipal bonds -1,254,338 -1,254,338
Total $-$3,189,587 $-$3,189,587
Police Pension
December 31, 2016
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasuries $-$9,636,997 $-$9,636,997
U.S. agencies -6,007,441 -6,007,441
Corporate bonds -7,448,510 -7,448,510
Equity securities 29,132,573 --29,132,573
Mutual funds - other than bond funds 5,759,944 --5,759,944
Total $34,892,517 $23,092,948 $-$57,985,465
Firefighters' Pension
December 31, 2016
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasuries $-$3,026,889 $-$3,026,889
U.S. agencies -14,717,810 -14,717,810
Municipal bonds -3,213,043 -3,213,043
Mutual funds - other than bond funds 32,901,848 --32,901,848
Total $32,901,848 $20,957,742 $-$53,859,590
Page 61
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
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.
As of December 31, 2016, 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
Page 62
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
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, 2016, the Village's investments were as follows:
Village
Maturity
Investment Type Fair Value
Less than one
year 1 - 5 years
U.S. agencies $1,935,249 $-$1,935,249
Municipal bonds 1,254,338 250,688 1,003,650
Totals $3,189,587 $250,688 $2,938,899
Police Pension
Maturity
Investment Type Fair Value
Less than one
year 1-5 years 6-10 years
More than 10
years
U.S. treasuries $9,636,997 $-$6,952,486 $-$2,684,511
U.S. agencies 6,007,441 1,311,086 2,645,350 1,273,201 777,804
Corporate bonds 7,448,510 1,535,661 3,030,186 2,144,709 737,954
Totals $23,092,948 $2,846,747 $12,628,022 $3,417,910 $4,200,269
Firefighters' Pension
Maturity
Investment Type Fair Value
Less than one
year 1-5 years 6-10 years
More than 10
years
U.S. treasuries $3,026,889 $-$2,344,471 $682,418 $-
U.S. agencies 14,717,810 450,222 3,001,678 10,963,230 302,680
Municipal bonds 3,213,043 145,941 1,447,375 1,457,118 162,609
Totals $20,957,742 $596,163 $6,793,524 $13,102,766 $465,289
Page 63
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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, 2016, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 5.71%. 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, 2016, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 6.78%. 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 64
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C.CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016, was as follows:
Beginning
Balance Adjustments*Additions Deletions
Ending
Balance
Governmental Activities
Capital assets not being
depreciated
Land $35,963,844 $-$932,823 $-$36,896,667
Construction in progress 761,660 -1,443,830 761,660 1,443,830
Total Capital Assets Not
Being depreciated 36,725,504 -2,376,653 761,660 38,340,497
Capital assets being depreciated
Buildings 23,210,214 -1,014,287 -24,224,501
Equipment and vehicles 11,884,949 (35,730)2,068,368 2,439,795 11,477,792
Land improvements 3,242,060 ---3,242,060
Streets 19,720,121 -3,293,169 -23,013,290
Storm sewers 37,665,289 -613,298 -38,278,587
Total Capital Assets Being
Depreciated 95,722,633 (35,730)6,989,122 2,439,795 100,236,230
Total Capital Assets 132,448,137 (35,730)9,365,775 3,201,455 138,576,727
Less: Accumulated depreciation for
Buildings (20,412,076)-(471,985)-(20,884,061)
Equipment and vehicles (8,956,160)(23,007)(750,373)2,439,795 (7,243,731)
Land improvements (342,002)-(64,845)-(406,847)
Streets (12,492,600)-(437,511)-(12,930,111)
Storm sewers (35,595,879)-(468,546)-(36,064,425)
Total Accumulated
depreciation (77,798,717)(23,007)(2,193,260)2,439,795 (77,529,175)
Net Capital Assets Being
Depreciated 17,923,916 (12,723)4,795,862 -22,707,055
Total Governmental
Activities Capital
Assets, Net of
Accumulated
Depreciation $54,649,420 $(12,723)$7,172,515 $761,660 $61,047,552
* The Village made adjustments to their capital asset records during the fiscal year in order to properly
report net book values.
Page 65
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C.CAPITAL ASSETS (cont.)
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $271,197
Public safety 578,716
Public works 1,343,347
Total Governmental Activities Depreciation Expense $2,193,260
Beginning
Balance Additions Deletions
Ending
Balance
Business-type Activities
Capital assets not being depreciated
Land $6,198,514 $-$-$6,198,514
Construction in progress 4,118,394 50,114 4,118,394 50,114
Total Capital Assets Not Being
depreciated 10,316,908 50,114 4,118,394 6,248,628
Capital assets being depreciated
Buildings 10,284,359 53,277 -10,337,636
Land improvements 1,966,488 --1,966,488
Equipment 94,510 --94,510
Water/Sewer infrastructure 62,106,468 8,651,929 -70,758,397
Total Capital Assets Being
Depreciated 74,451,825 8,705,206 -83,157,031
Total Capital Assets 84,768,733 8,755,320 4,118,394 89,405,659
Less: Accumulated depreciation for
Buildings (8,144,793)(488,420)-(8,633,213)
Land improvements (1,966,488)(1,473)-(1,967,961)
Equipment (94,510)--(94,510)
Water/Sewer infrastructure (34,612,913)(1,342,484)-(35,955,397)
Total Accumulated depreciation (44,818,704)(1,832,377)-(46,651,081)
Net Capital Assets Being
Depreciated 29,633,121 6,872,829 -36,505,950
Business-type Capital
Assets, Net of
Accumulated depreciation $39,950,029 $6,922,943 $4,118,394 $42,754,578
Page 66
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $51,614
General Arboretum Golf 43,103
General Nonmajor Business Type 6,024
General Internal Service 10,192
General Street Maintenance 57,190
General Facilities Development 139,211
General Nonmajor Governmental 27,417
Arboretum Golf General 41,532
Nonmajor Business Type General 20,262
Total - Fund Financial Statements 396,545
Less: Fund eliminations (357,598)
Total Internal Balances - Government-W ide Statement of
Net Position $38,947
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 67
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $857,644
To fund administrative,
operating, and maintenance
expenses
General Arboretum Golf 55,400 Administrative expenses
General Nonmajor Governmental 12,000 Administrative expenses
General Nonmajor Business Type 145,600 Administrative expenses
General Internal Service Funds 86,421 Funding of capital reserve
Facilities Development General 928,356 Funding of capital projects
Street Maintenance General 849,727 Funding of capital projects
Street Maintenance Nonmajor Business Type 200,000 Funding of capital projects
Arboretum Golf General 202,095 Administrative expenses
Nonmajor Business Type General 174,359 Administrative expenses
Nonmajor Governmental Water and Sewerage 180,000 To fund debt service
Nonmajor Governmental Street Maintenance 87,447 To fund debt service
Total - Fund Financial Statements 3,779,049
Less: Fund eliminations (2,716,859)
Total Transfers - Government-W ide Statement
of Activities $1,062,190
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 68
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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, 2016, was as follows:
Beginning
Balance Issued Redeemed
Ending
Balance
Line of credit $3,400,000 $-$-$3,400,000
Totals $3,400,000 $-$-$3,400,000
F.LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended December 31, 2016, was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Amounts Due
Within One
Year
Governmental Activities
Bonds Payable
General obligation debt $10,040,000 $6,125,000 $525,000 $15,640,000 $1,275,000
Premium 162,453 100,778 21,823 241,408 -
Sub-totals 10,202,453 6,225,778 546,823 15,881,408 1,275,000
Other Liabilities
Vested compensated
absences 1,352,691 298,448 132,861 1,518,278 132,861
Other postemployment
benefits 758,973 633,942 423,177 969,738 -
Net pension liability 56,154,872 9,794,776 5,515,664 60,433,984 -
Total Other Liabilities 58,266,536 10,727,166 6,071,702 62,922,000 132,861
Total Governmental
Activities Long-Term
Liabilities $68,468,989 $16,952,944 $6,618,525 $78,803,408 $1,407,861
Business-type Activities
Loans and Notes Payable
IEPA loan payable $383,487 $-$17,426 $366,061 $17,828
Water installment note 1,193,599 5,777,400 76,552 6,894,447 256,048
Sub-totals 1,577,086 5,777,400 93,978 7,260,508 273,876
Other Liabilities
Vested compensated
absences 114,422 47,217 24,337 137,302 12,015
Net pension liability 984,617 749,670 172,230 1,562,057 -
Total Other Liabilities 1,099,039 796,887 196,567 1,699,359 12,015
Total Business-type
Activities Long-Term
Liabilities $2,676,125 $6,574,287 $290,545 $8,959,867 $285,891
Page 69
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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,
2016
General Obligation
Bonds Series 2010A 4/6/2010 12/31/2020 2.0-4.0%$5,160,000 $1,470,000
General Obligation
Bonds Series 2010B 4/6/2010 12/31/2025 2.5-3.85%2,600,000 2,045,000
General Obligation
Bonds Series 2012 8/27/2012 6/30/2030 2.0-2.75%6,000,000 6,000,000
General Obligation
Bonds Series 2016 5/3/2016 12/30/2031 2.0 - 3.0%6,125,000 6,125,000
Total Governmental Activities - General Obligation Debt $15,640,000
Debt service requirements to maturity are as follows:
Governmental Activities
General Obligation Debt
Years Principal Interest
2017 $1,275,000 $399,144
2018 1,315,000 367,694
2019 1,210,000 331,119
2020 1,285,000 296,369
2021 940,000 259,469
2022-2026 5,005,000 946,179
2027-2031 4,610,000 336,781
Totals $15,640,000 $2,936,755
Page 70
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F.LONG-TERM OBLIGATIONS (cont.)
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 $407,307 as of December 31, 2016.
Business-type Activities
IEPA Loan Payable
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
December 31,
2016
IEPA Loan Payable 11/20/2013 12/1/2033 2.295%$407,307 $366,061
Total Business-type Activities IEPA Loan Payable $366,061
Debt service requirements to maturity are as follows:
Business-type Activities
IEPA Loan Payable
Years Principal Interest
2017 $17,828 $8,299
2018 18,240 7,888
2019 18,661 7,467
2020 19,092 7,036
2021 19,532 6,595
2022-2026 104,636 26,063
2027-2031 117,282 13,357
2032-2033 50,790 1,465
Totals $366,061 $78,170
Page 71
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
F.LONG-TERM OBLIGATIONS (cont.)
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, 2016, the Village had received all of the
installment note proceeds.
Business-type Activities
Water Installment Note
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
December 31,
2016
Water Installment Note 3/27/2015 6/1/2029 2.350%$6,970,999 $6,894,447
Total Business-type Activities Incentive Agreements $6,894,447
Debt service requirements to maturity are as follows:
Business-type Activities
IEPA Loan Payable
Years Principal Interest
2017 $256,048 $160,088
2018 296,530 153,703
2019 340,052 146,338
2020 386,802 137,921
2021 436,970 128,372
2022-2026 3,072,004 453,014
2027-2031 2,106,041 68,041
Totals $6,894,447 $1,247,477
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.
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, 2016, $1,570,000 of bonds outstanding are considered
defeased.
Page 72
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
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, 2016 are as follows:
Years Amount
2017 $124,176
2018 126,660
2019 129,193
2020 131,777
2021 134,412
2022-2025 515,937
Totals $1,162,155
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.
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
age 55 (at reduced benefits) or after age 60 (at full benefits) 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 3% for each year thereafter.
Page 73
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants,
pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced
benefits) or after age 67 (at full benefits) 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 for the first 15
years of service credit, plus 2% for each year of service after 15 years to a maximum of 75% of their final
rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months
within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased every year after
retirement, upon reaching age 67, by the lesser of 3% of the original pension amount or 1/2 of the
increase in the Consumer Price Index of the original pension amount.
Plan membership. At December 31, 2015, the measurement date, membership in the plan was as
follows:
Retirees and beneficiaries 99
Inactive, non-retired members 58
Active members 94
Total 251
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 2015 was 13.40% of annual covered
payroll for IMRF. 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, 2015,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
actuarial valuation as of that date.
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.
Page 74
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations
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
Investment Rate of Return 7.47%
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.
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 38.00%8.85%7.39%
International equities 17.00%9.55%7.59%
Fixed income 27.00%3.05%3.00%
Real estate 8.00%7.20%6.00%
Alternatives 9.00%
Private equity 13.15%8.15%
Hedge funds 5.55%5.25%
Commodities 4.40%2.75%
Cash equivalents 1.00%2.25%2.25%
Page 75
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.47%. The
discount rate calculated using the December 31, 2014 measurement date was 7.49%. 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 rate 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 3.57% for tax exempt 20-year general obligation municipal bonds with an
average AA credit rating at December 31, 2015 to arrive at a discount rate of 7.47%used to determine the
total pension liability. The year ending December 31, 2084 is the last year in the 2016 to 2115 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 net pension liability/(asset) of the Village
calculated using the discount rate of 7.47% 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 (6.47%) or 1 percentage point
higher (8.47%) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $66,453,583 $58,559,118 $52,091,222
Plan fiduciary net pension 48,644,743 48,644,743 48,644,743
Net pension liability/(asset)$17,808,840 $9,914,375 $3,446,479
Page 76
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar
year ended December 31, 2015 were as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(a) - (b)
Balances at December 31, 2014 $54,600,269 $48,803,503 $5,796,766
Service cost 860,654 -860,654
Interest on total pension liability 4,031,299 -4,031,299
Differences between expected and actual
experience of the total pension liability
1,338,146 -1,338,146
Change of assumptions 145,117 -145,117
Benefit payments, including refunds of
employee contributions
(2,416,367)(2,416,367)-
Contributions - employer -1,093,142 (1,093,142)
Contributions - employee -402,168 (402,168)
Net investment income -241,715 (241,715)
Other (net transfer)-520,582 (520,582)
Balances at December 31, 2015 $58,559,118 $48,644,743 $9,914,375
Plan fiduciary net position as a percentage of
the total pension liability %83.07
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended December 31, 2016, the Village recognized pension expense of
$1,592,229. 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 $1,038,019 $643,540
Assumption changes 1,104,182 -
Net difference between projected and actual earnings on pension
plan investments 3,095,285 -
Contributions subsequent to the measurement date 1,120,212 -
Total $6,357,698 $643,540
Page 77
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 . The remaining amounts reported as deferred outflows and inflows of resources related to
pensions ($4,593,946) will be recognized in pension expense as follows:
Year Ending December 31,Village
2016 $1,268,271
2017 1,268,271
2018 1,224,135
2019 833,269
Total $4,593,946
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 of 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 78
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Plan membership. At December 31, 2016, the Police Pension membership consisted of:
Retirees and beneficiaries 48
Inactive, non-retired members 3
Active members 63
Total 114
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, 2016 was 37.50% of annual covered
payroll.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2016,
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.
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed as
of December 31, 2016 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Interest rate 6.72%
Inflation 2.50%
Projected salary increases 3.50%
Cost-of-living adjustments 2.50%
Page 79
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Mortality rates were based on the L&A 2016 Illinois Police Mortality Table. The actuarial assumptions
were based on the results of an actuarial experience study conducted by Lauterbach & Amen, LLP in
2016.
Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan
was 6.72%. The discount rate calculated using the December 31, 2015 measurement date was 6.81%.
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 not 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 of 7.00% was blended with the index rate of 3.78% for tax exempt 20-year general
obligation municipal bonds with an average AA credit rating as of December 31, 2016 to arrive at a
discount rate of 6.72% used to determine the total pension liability. The year ending December 31, 2067
is the last year in the 2016 to 2096 projection period for which projected benefit payments are fully
funded.
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 6.72% 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 (5.72%) or 1 percentage point higher (7.72%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $107,962,350 $93,634,056 $82,030,469
Plan fiduciary net position 59,527,769 59,527,769 59,527,769
Net pension liability $48,434,581 $34,106,287 $22,502,700
Page 80
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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, 2016 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at December 31, 2015 $88,992,905 $56,384,952 $32,607,953
Service cost 1,534,051 -1,534,051
Interest on total pension liability 5,861,687 -5,861,687
Differences between expected and actual
experience of the total pension liability 358,140 -358,140
Change of assumptions 170,816 -170,816
Benefit payments, including refunds of employee
contributions (3,283,543)(3,283,543)-
Contributions - employer -2,430,017 (2,430,017)
Contributions - employee -622,198 (622,198)
Net investment income -3,418,114 (3,418,114)
Administration -(43,969)43,969
Balances at December 31, 2016 $93,634,056 $59,527,769 $34,106,287
Plan fiduciary net position as a percentage of the
total pension liability 63.57%
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended December 31, 2016, the Village recognized pension expense of
$4,443,500. 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 $402,544 $684,888
Assumption changes 3,290,945 -
Net difference between projected and actual earnings on pension
plan investments 2,664,884 -
Total $6,358,373 $684,888
Page 81
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($5,673,485)
will be recognized in pension expense as follows:
Year Ending December 31,Amount
2017 $1,563,302
2018 1,563,302
2019 1,563,299
2020 813,457
2021 161,545
Thereafter 8,580
Total $5,673,485
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 of 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 82
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Plan membership. At December 31, 2016, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries 35
Inactive, non-retired members 1
Active members 55
Total 91
Contributions. Participants contribute a fixed percentage of their base salary to the plans. At December
31, 2016, 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, 2016 was 32.10% of annual covered payroll.
Net pension liability/(asset). The net pension liability/(asset) was measured as of December 31, 2016,
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.
Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as
of December 31, 2016 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 2.50%
Projected salary increases 3.50%
Cost-of-living adjustments 2.50%
Page 83
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Mortality rates were based on the L&A 2016 Illinois Firefighters' Mortality Table. The actuarial
assumptions were based on the results of an actuarial experience study conducted by Lauterbach &
Amen, LLP in 2016..
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 $83,383,819 $72,153,824 $63,054,432
Plan fiduciary net position 54,178,445 54,178,445 54,178,445
Net pension liability $29,205,374 $17,975,379 $8,875,987
Page 84
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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, 2016 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at December 31, 2015 $69,082,934 $50,348,164 $18,734,770
Service cost 1,260,242 -1,260,242
Interest on total pension liability 4,757,916 -4,757,916
Differences between expected and actual
experience of the total pension liability (133,067)-(133,067)
Change of assumptions (588,791)-(588,791)
Benefit payments, including refunds of employee
contributions (2,225,410)(2,225,410)-
Contributions - employer -2,166,040 (2,166,040)
Contributions - employee -516,422 (516,422)
Net investment income -3,415,513 (3,415,513)
Administration -(42,284)42,284
Balances at December 31, 2016 $72,153,824 $54,178,445 $17,975,379
Plan fiduciary net position as a percentage of the
total net position 75.09%
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended December 31, 2016, the Village recognized pension expense of
$2,516,726. 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 $-$936,763
Assumption changes 864,601 518,192
Net difference between projected and actual earnings on pension
plan investments 1,770,281 -
Total $2,634,882 $1,454,955
Page 85
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($1,179,927)
will be recognized in pension expense as follows:
Year Ending December 31,Amount
2017 $502,474
2018 502,474
2019 502,470
2020 (54,725)
2021 (79,397)
Thereafter (193,369)
Total $1,179,927
PENSION SEGMENT INFORMATION
Fiduciary Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Assets
Cash $1,549,434 $173,230 $1,722,664
Investments
U.S. treasuries 9,636,997 3,026,889 12,663,886
U.S. agencies 6,007,441 14,717,810 20,725,251
Mutual funds - other than bond funds 5,759,944 32,901,848 38,661,792
Equity securities 29,132,573 -29,132,573
Municipal bonds -3,213,043 3,213,043
Corporate bonds 7,448,510 -7,448,510
Receivables
Interest 74,182 124,138 198,320
Prepaid items 3,426 2,412 5,838
Due from primary government 52,237 53,333 105,570
Total Assets 59,664,744 54,212,703 113,877,447
Liabilities
Accounts payable 52,346 33,951 86,297
Due to primary government 84,629 307 84,936
Total Liabilities 136,975 34,258 171,233
Net Position
Held in trust for pension benefits $59,527,769 $54,178,445 $113,706,214
Page 86
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $2,430,017 $2,166,040 $4,596,057
Plan members 622,198 516,422 1,138,620
Total Contributions 3,052,215 2,682,462 5,734,677
Investment Income
Net appreciation in fair value of investments 3,477,459 2,949,397 6,426,856
Interest 129,646 598,544 728,190
Total Investment income 3,607,105 3,547,941 7,155,046
Less investment income 188,991 132,428 321,419
Net investment income 3,418,114 3,415,513 6,833,627
Total Additions 6,470,329 6,097,975 12,568,304
Deductions
Administration 43,969 42,284 86,253
Pension benefits and refunds 3,283,543 2,225,410 5,508,953
Total Deductions 3,327,512 2,267,694 5,595,206
Net change in net position 3,142,817 3,830,281 6,973,098
Net position, beginning of year 56,384,952 50,348,164 106,733,116
Net position, end of year $59,527,769 $54,178,445 $113,706,214
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. All of these risks are
covered through the purchase of commercial insurance, with minimal deductibles. Settled claims have not
exceeded the commercial coverage in any of the past three years. There were no significant reductions in
coverage compared to the prior year.
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 87
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $703,565 to SW ANCC for the year
ended December 31, 2016.
Page 88
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 89
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $1,663,914 to NW WC for the year
ended December 31, 2016. The Village's equity interest in NW WC was $6,846,607 at December 31,
2016. 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 (Village of Buffalo Grove
Group Health Plan (the plan) provides health insurance contributions for eligible retirees and their spouses
through the Village’s group health insurance plan, which cover both active and retired members. Benefit
provisions are established through personnel policy guidelines and state that eligible retirees and their
spouses receive healthcare insurance to age 65 at established contribution rates. The plan does not issue
a publicly available financial report.
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 2016, the Village contributed $423,177 to the Plan. Plan
members receiving benefits contributed $449,498 through their required contribution of $614 per month
for retiree only coverage and $1,241 per month for retiree and spouse coverage.
Page 90
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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 $628,882
Interest on net OPEB obligation 30,359
Adjustment to annual required contribution (25,299)
Annual OPEB cost 633,942
Contributions made (423,177)
Increase in net OPEB obligation (asset)210,765
Net OPEB Obligation (Asset) - Beginning of Year 758,973
Net OPEB Obligation (Asset) - End of Year $969,738
The Village's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2016 were as follows:
Fiscal Year Ended
Annual OPEB
Cost
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
December 31, 2014 $269,622 81.16%$425,400
December 31, 2015 302,918 72.24%758,973
December 31, 2016 633,942 66.75%969,738
Page 91
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
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, 2016, was 30 years.
Page 92
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
F.TAX ABATEMENT
Tax abatements are a reduction in tax revenues that results from an agreement between one or more
governments and an individual or entity in which (a) one or more governments promise to forgo tax
revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific
action after the agreement has been entered into that contributes to economic development or otherwise
benefits the governments or the citizens of those governments.
The Village is disclosing all abatement agreements individually.
The Village of Buffalo Grove has entered into a tax abatement agreement with W oodman’s Food Market,
Inc. as an incentive to stimulate economic development. The abatement is authorized through a
Development Improvement Agreement passed by the Village board in Ordinance 2016-067 on December
19, 2016. W oodman’s will be financially responsible for constructing all necessary offsite roadway and
intersection improvements as required by the Village, County, or State along the public roadways along
the perimeter of the property. The offsite improvements are estimated to be $4,000,000. The Village will
reimburse W oodman’s, an amount not to exceed $4,000,000 for the roadway improvements and an
additional payment of $3,000,000 for a combined total of $7,000,000. In order to promote and assist
Woodman’s with the project, the Village agrees to share certain sales tax received that corresponds to the
new sales tax revenue generated from the retail sales of the project. The sales tax allowable is limited to
the sales tax associated with grocery, general merchandise, and products only. W oodman’s must acquire
or otherwise be authorized to use the premise in Buffalo Grove, construct and operate the business, and
construct the offsite roadway improvements to be eligible for the incentives. Incentive payments as of
December 31, 2016 were $0.
The Village of Buffalo Grove has entered into a tax abatement agreement with Edward Hines Lumber Co.
as an incentive to stimulate economic development. The abatement is authorized through Village
Ordinance 2000-67 on November 20, 2000 and has since been amended with Village Ordinance 2003-18
on March 3, 2003 and Ordinance 2009-47 on August 3, 2009. Edward Hines Lumber Co. shall maintain a
single order-acceptance point policy for all Credit Sales and shall not relocate the single order-acceptance
point outside of the Village unless it violates or contravenes any state or federal law or court
decision/determination. The Village will remit 60 percent of the Municipal Sales tax resulting from the
Credit Sales received by the Village to Edward Hines Lumber Co. The Village will keep the remaining 40
percent. Incentive payments as of December 31, 2016 were $1,223,458.
Page 93
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
F.TAX ABATEMENT (cont.)
The Village of Buffalo Grove has entered into a tax abatement agreement with LAB Development, LLC as
an incentive to stimulate economic development. The abatement is authorized through Village Ordinance
2011-14 on March 21, 2011 and has since been amended with Village Ordinance 2016-032 on May 10,
2016. LAB Development, LLC shall conduct its business in Buffalo Grove, maintain a single order-
acceptance point on premise. The amendment to the original agreement in 2016 requires LAB
Development to extend their current lease at the premise in Buffalo Grove and expand the operation from
61,416 square feet to 124,605 square feet. The lease extension must be no less than 8.5 years,
commencing January 1, 2016. The original agreement provided LAB Development with a tax abatement
of 100% of the Municipal Sales Tax in year one of the agreement, this percentage decreases 10% per
year until year seven of the agreement. The amount of Municipal Sales tax abated to LAB Development
could not exceed $500,000 over the seven year term. The amended agreement extended the abatements
to LAB Development under new terms. LAB is entitled to 80 percent of the base Municipal Sales Tax
above $162,207 in year one. The percentage per year decreases 10 percent until year five, from year five
to eight and a half the percentage is fixed at 50 percent. The base Municipal Sales tax amount of
$162,207 is fixed for the term of the contract and prorated for the half year in 2024. The amount of
Municipal Sales Tax to be abated is not to exceed $2,600,000 over the life of the amended agreement. If
LAB Development, LLC relocates or ceases business operations on the premise within five years of the
commencement date of the amended contract they shall reimburse the Village 100 percent of the
Municipal Sales Tax payments to the Village within ninety days. If LAB Development, LLC relocates or
ceases business operations on the premise after the fifth year they will remit $750,000 to the Village within
ninety days. If LAB Development, LLC relocates or ceases business operations on the premise after the
sixth year they will remit $375,000 to the Village within ninety days. If LAB Development, LLC relocates or
ceases business operations on the premise after the seventh year they will remit $187,500 to the Village
within ninety days. If LAB Development conducts less than $30,000,000 of taxable sales at the premise in
any given year of the contract they shall not receive more than 50 percent of the Municipal Sales Tax
increment for that year. Incentive payments as of December 31, 2016 were $248,322.
The Village of Buffalo Grove has entered into a tax abatement agreement with Bob V. Rohrman as an
incentive to stimulate economic development. The abatement is authorized through Village Ordinance
2014-61 on August 29, 2014. The Village will remit 50 percent of the Municipal Sales tax resulting from
the Municipal Sales Tax generated to Bob V. Rohrman. The amount remitted may not exceed $1,500,000
and the Village is not obligated to make any Municipal Sales Tax payment for any sales tax year in which
gross receipts on the premise are less than $15,000,000. Incentive payments as of December 31, 2016
were $0.
Page 94
VILLAGE OF BUFFALO GROVE
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2016
NOTE IV - OTHER INFORMATION (cont.)
G.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved the following:
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. 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 Statements No. 67, No. 68,
and No. 73
Statement No. 83, Certain Asset Retirement Obligations
Statement No. 84, Fiduciary Activities
Statement No. 85, Omnibus 2017
Statement No. 86, Certain Debt Extinguishment Issues
When they become effective, application of these standards may restate portions of these financial
statements.
Page 95
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, 2016
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Property taxes $14,550,225 $14,441,210 $(109,015)
Other taxes 9,770,513 9,701,271 (69,242)
Charges for services 1,017,123 1,503,266 486,143
Fines and fees 2,819,672 2,818,888 (784)
Licenses and permits 284,810 326,177 41,367
Intergovernmental 11,392,400 10,787,297 (605,103)
Interest 49,950 65,600 15,650
Miscellaneous income 966,050 1,602,527 636,477
Total Revenues 40,850,743 41,246,236 395,493
EXPENDITURES
Current:
General government 5,818,380 5,529,349 289,031
Public safety 26,725,894 27,407,019 (681,125)
Public works 7,046,579 5,559,733 1,486,846
Total Expenditures 39,590,853 38,496,101 1,094,752
Excess of revenues over expenditures 1,259,890 2,750,135 1,490,245
OTHER FINANCING SOURCES (USES)
Sales of capital assets -1,385 1,385
Transfers in 864,000 1,157,065 293,065
Transfers out (2,080,022)(2,154,537)(74,515)
Total Other Financing Sources (Uses)(1,216,022)(996,087)219,935
Net Change in Fund Balance $43,868 1,754,048 $1,710,180
FUND BALANCE - Beginning of Year 23,298,894
FUND BALANCE - END OF YEAR $25,052,942
See independent auditors' report and accompanying notes to required supplementary information.
Page 96
See independent auditors' report and accompanying notes to required supplementary information.
Page 97
VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY
AND RELATED RATIOS
For the past two fiscal years
2015 2016
Total pension liability
Service cost 964,574$ 860,654$
Interest 3,808,085 4,031,299
Differences between expected and actual experience (1,126,970) 1,338,146
Changes of assumptions 1,736,515 145,117
Benefit payments, including refunds of member contributions (2,148,231) (2,416,367)
Net change in total pension liability 3,233,973 3,958,849
Total pension liability - beginning 51,366,296 54,600,269
Total pension liability - ending (a)54,600,269$ 58,559,118$
Plan fiduciary net position
Employer contributions 1,071,994$ 1,093,142$
Employee contributions 369,278 402,168
Net investment income 2,892,087 241,715
Benefit payments, including refunds of member contributions (2,148,231) (2,416,367)
Other (net transfer)(1,146,370) 520,582
Net change in plan fiduciary net position 1,038,758 (158,760)
Plan fiduciary net position - beginning 47,764,745 48,803,503
Plan fiduciary net position - ending (b)48,803,503$ 48,644,743$
Employer's net pension liability - ending (a) - (b)5,796,766$ 9,914,375$
Plan fiduciary net position as a percentage of the total
pension liability 89.38%83.07%
Covered-employee payroll 8,195,678$ 8,157,772$
Employer's net pension liability as a percentage of covered-
employee payroll 70.73%121.53%
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 98
VILLAGE OF BUFFALO GROVE
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the past two fiscal years
2015 2016
Actuarially determined contribution 1,071,995$ 1,093,141$
Contributions in relation to the actuarially
determined contribution (1,071,994) (1,093,142)
Contribution deficiency (excess)1$ (1)$
Covered-employee payroll 8,195,678$ 8,157,772$
Contributions as a percentage of covered-
employee payroll 13.08%13.40%
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.
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
28 Years
5-Year Smoothed Market
4.40% to 16.00% including inflation
Experience-based table of rates that are specific to the type of eligibility
condition
See independent auditors' report and accompanying notes to required supplementary information.
Page 99
2014 2015 2016
Total pension liability
Service cost 1,415,171$ 1,386,660$ 1,534,051$
Interest 5,318,732 5,438,273 5,861,687
Difference between expected and actual experience - (1,015,708) 358,140
Changes in assumptions - 4,811,344 170,816
Benefit payments, including refunds of member contributions (2,747,592) (2,969,657) (3,283,543)
Net change in total pension liability 3,986,311 7,650,912 4,641,151
Total pension liability - beginning 77,355,682 81,341,993 88,992,905
Total pension liability - ending (a)81,341,993$ 88,992,905$ 93,634,056$
Plan fiduciary net position
Employer contributions 2,083,758$ 2,284,315$ 2,430,017$
Employee contributions 654,693 669,077 622,198
Net investment income 3,756,487 186,635 3,418,114
Benefit payments, including refunds of member contributions (2,747,592) (2,969,657) (3,283,543)
Administration (33,343) (39,870) (43,969)
Net change in plan fiduciary net position 3,714,003 130,500 3,142,817
Plan fiduciary net position - beginning 52,540,449 56,254,452 56,384,952
Plan fiduciary net position - ending (b)56,254,452$ 56,384,952$ 59,527,769$
Village's net pension liability - ending (a) - (b)25,087,541$ 32,607,953$ 34,106,287$
Plan fiduciary net position as a percentage of the total
pension liability 69.16%63.36%63.57%
Covered-employee payroll 5,984,178$ 6,056,962$ 6,406,672$
Village's net pension liability as a percentage of covered-
employee payroll 419.23%538.35%532.36%
Notes to Schedule:
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, 2016
The Village 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.
Page 100
2014 2015 2016
Actuarially determined contribution 2,359,777$ 2,256,676$ 2,407,865$
Contributions in relation to the actuarially
determined contribution 2,083,758 2,284,315 2,430,017
Contribution deficiency (excess)276,019$ (27,639)$ (22,152)$
Covered-employee payroll 5,984,178$ 6,056,962$ 6,406,672$
Contributions as a percentage of covered-
employee payroll 34.82%37.71%37.93%
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.
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the Year Ended December 31, 2016
The Plan implemented GASB Statement No. 67 in fiscal year 2014. Information prior to fiscal year 2014 is not available.
Entry-age
Level percentage of payroll, closed
24 years
Market Value
2.50%
4.00% to 8.67%, average, including
See independent auditors' report and accompanying notes to required supplementary information.
Page 101
2014 2015 2016
Annual money-weighted rate of return,
net of investment expense 7.00%0.67%5.71%
Notes to Schedule:
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
As of December 31, 2016
The Village 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.
Page 102
2014 2015 2016
Total pension liability
Service cost 1,378,069$ 1,179,270$ 1,260,242$
Interest 4,304,137 4,508,473 4,757,916
Differences between expected and actual experience 218,159 (1,080,688) (133,067)
Changes of assumptions (938,734) 1,139,953 (588,791)
Benefit payments, including refunds of member contributions (1,943,411) (2,141,668) (2,225,410)
Net change in total pension liability 3,018,220 3,605,340 3,070,890
Total pension liability - beginning 62,459,374 65,477,594 69,082,934
Total pension liability - ending (a)65,477,594$ 69,082,934$ 72,153,824$
Plan fiduciary net position
Employer contributions 2,168,844$ 2,202,138$ 2,166,040$
Employee contributions 502,014 524,714 516,422
Net investment income 3,195,916 654,625 3,415,513
Benefit payments, including refunds of member contributions (1,943,409) (2,141,668) (2,225,410)
Administration (42,368) (48,363) (42,284)
Net change in plan fiduciary net position 3,880,997 1,191,446 3,830,281
Plan fiduciary net position - beginning 45,275,721 49,156,718 50,348,164
Plan fiduciary net position - ending (b)49,156,718$ 50,348,164$ 54,178,445$
Village's net pension liability - ending (a) - (b)16,320,876$ 18,734,770$ 17,975,379$
Plan fiduciary net position as a percentage of the total
pension liability 75.07%72.88%75.09%
Covered-employee payroll 5,224,950$ 5,308,713$ 5,390,509$
Village's net pension liability as a percentage of covered-
employee payroll 312.36%352.91%333.46%
Notes to Schedule:
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, 2016
The Village 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.
Page 103
2014 2015 2016
Actuarially determined contribution 1,884,815$ 1,848,990$ 1,728,496$
Contributions in relation to the actuarially
determined contribution 2,168,844 2,202,138 2,166,040
Contribution deficiency (excess)(284,029)$ (353,148)$ (437,544)$
Covered-employee payroll 5,224,950$ 5,308,713$ 5,390,509$
Contributions as a percentage of covered-
employee payroll 41.51%41.48%40.18%
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.
Mortality rates were based on the L&A 2016 Illinois
2.50%
7.00%, net of pension plan
investment expense, including
Entry-age
Level percentage of payroll, closed
24 years
Market Value
4.00% to 9.73%, average, including
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the Year Ended December 31, 2016
See independent auditors' report and accompanying notes to required supplementary information.
Page 104
2014 2015 2016
Annual money-weighted rate of return,
net of investment expense 7.08%1.32%6.78%
Notes to Schedule:
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
As of December 31, 2016
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, 2016
Year Ended
Annual
Required
Contribution
Percentage
Contributed
12/31/16 $628,882 67.29 %
12/31/15 604,694 58.97
12/31/14 300,421 72.84
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%$19,951,806 46.78%
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 105
VILLAGE OF BUFFALO GROVE
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2016
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 106
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, 2016
Motor Fuel
Tax
Metra Parking
Lot Debt Service
Total
Nonmajor
Governmental
Funds
ASSETS
Cash $1,729,363 $97,613 $-$1,826,976
Receivables
Property taxes --1,019,894 1,019,894
Motor fuel tax 98,440 --98,440
TOTAL ASSETS $1,827,803 $97,613 $1,019,894 $2,945,310
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $288,348 $4,134 $-$292,482
Due to other funds --27,417 27,417
Total Liabilities 288,348 4,134 27,417 319,899
Deferred Inflows of Resources
Property taxes levied for a future period --1,019,894 1,019,894
Total Deferred Inflows of Resources --1,019,894 1,019,894
Fund Balances
Restricted for parking lot operations -93,479 -93,479
Restricted for road construction 1,539,455 --1,539,455
Unassigned --(27,417)(27,417)
Total Fund Balances 1,539,455 93,479 (27,417)1,605,517
TOTAL LIABILITIES,
DEFERRED INFLOWS OF
RESOURCES, AND FUND
BALANCES $1,827,803 $97,613 $1,019,894 $2,945,310
Page 107
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2016
Motor Fuel
Tax
Metra Parking
Lot Debt Service
Total
Nonmajor
Governmental
Funds
REVENUES
Property taxes $-$-$593,373 $593,373
Intergovernmental 1,056,515 --1,056,515
Miscellaneous income --8,219 8,219
Charges for services -1,134 -1,134
Fines and fees -206,740 -206,740
Total Revenues 1,056,515 207,874 601,592 1,865,981
EXPENDITURES
Current
General government -163,793 -163,793
Capital improvement 1,282,619 --1,282,619
Debt Service
Principal --525,000 525,000
Interest --371,456 371,456
Total Expenditures 1,282,619 163,793 896,456 2,342,868
Excess (deficiency) of revenues over
expenditures (226,104)44,081 (294,864)(476,887)
OTHER FINANCING SOURCES (USES)
Transfers in --267,447 267,447
Transfers out -(12,000)-(12,000)
Total Other Financing Sources (Uses)-(12,000)267,447 255,447
Net Change in Fund Balances (226,104)32,081 (27,417)(221,440)
FUND BALANCES - Beginning of Year 1,765,559 61,398 -1,826,957
FUND BALANCES (DEFICIT) - END OF
YEAR $1,539,455 $93,479 $(27,417)$1,605,517
Page 108
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX - NONMAJOR SPECIAL REVENUE FUND
For the Year Ended December 31, 2016
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Intergovernmental $1,000,000 $1,056,515 $56,515
Total Revenues 1,000,000 1,056,515 56,515
EXPENDITURES
Current:
Public works 1,000,000 1,282,619 (282,619)
Total Expenditures 1,000,000 1,282,619 (282,619)
Net Change in Fund Balance $-(226,104)$(226,104)
FUND BALANCE - Beginning of Year 1,765,559
FUND BALANCE - END OF YEAR $1,539,455
Page 109
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, 2016
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Charges for services $1,050 $1,134 $84
Fines and fees 228,950 206,740 (22,210)
Total Revenues 230,000 207,874 (22,126)
EXPENDITURES
Current:
General government 181,654 163,793 17,861
Total Expenditures 181,654 163,793 17,861
Excess (deficiency) of revenues over (under)
expenditures 48,346 44,081 (4,265)
OTHER FINANCING SOURCES (USES)
Transfers out (12,000)(12,000)-
Total Other Financing Sources (Uses)(12,000)(12,000)-
Net Change in Fund Balance $36,346 32,081 $(4,265)
FUND BALANCE - Beginning of Year 61,398
FUND BALANCE - END OF YEAR $93,479
Page 110
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, 2016
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Property taxes $627,063 $593,373 $(33,690)
Miscellaneous income -8,219 8,219
Total Revenues 627,063 601,592 (25,471)
EXPENDITURES
Debt Service
Principal 525,000 525,000 -
Interest 285,063 371,456 (86,393)
Total Expenditures 810,063 896,456 (86,393)
Excess (deficiency) of revenues over (under)
expenditures (183,000)(294,864)(111,864)
OTHER FINANCING SOURCES
Transfers in 180,000 267,447 87,447
Total Other Financing Sources 180,000 267,447 87,447
Net Change in Fund Balance $(3,000)(27,417)$(24,417)
FUND BALANCE - Beginning of Year -
FUND BALANCE (DEFICIT) - END OF YEAR $(27,417)
Page 111
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, 2016
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Miscellaneous income $500,000 $-$(500,000)
Total Revenues 500,000 -(500,000)
EXPENDITURES
Capital Outlay 1,428,356 846,993 581,363
Total Expenditures 1,428,356 846,993 581,363
Excess (deficiency) of revenues over (under)
expenditures (928,356)(846,993)81,363
OTHER FINANCING SOURCES
Transfers in 928,356 928,356 -
Total Other Financing Sources 928,356 928,356 -
Net Change in Fund Balance $-81,363 $81,363
FUND BALANCE (DEFICIT) - Beginning of Year (3,707,560)
FUND BALANCE (DEFICIT) - END OF YEAR $(3,626,197)
Page 112
VILLAGE OF BUFFALO GROVE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - STREET MAINTENANCE - MAJOR CAPITAL PROJECTS
FUND
For the Year Ended December 31, 2016
Original and
Final Budget Actual
Variance with
Final Budget
REVENUES
Total Revenues $-$-$-
EXPENDITURES
Public works -135,955 (135,955)
Capital Outlay 1,049,727 7,405,611 (6,355,884)
Total Expenditures 1,049,727 7,541,566 (6,491,839)
Excess (deficiency) of revenues over (under)
expenditures (1,049,727)(7,541,566)(6,491,839)
OTHER FINANCING SOURCES
Transfers in 1,049,727 1,049,727 -
Transfers out -(87,447)(87,447)
General obligation bonds issued -6,125,000 6,125,000
Premium on debt issued -100,778 100,778
Total Other Financing Sources 1,049,727 7,188,058 6,138,331
Net Change in Fund Balance $-(353,508)$(353,508)
FUND BALANCE - Beginning of Year 147,158
FUND BALANCE (DEFICIT) - END OF YEAR $(206,350)
Page 113
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
As of December 31, 2016
Buffalo Grove
Golf
Refuse
Service
Total Nonmajor
Enterprise
Funds
ASSETS
Current Assets
Cash and equivalents $110,970 $1,168,409 $1,279,379
Receivables
Other 1,828 160,075 161,903
Due from other funds 20,262 -20,262
Inventory 19,455 -19,455
Total Current Assets 152,515 1,328,484 1,480,999
Noncurrent Assets
Capital Assets
Land 978,776 -978,776
Construction in progress 12,804 -12,804
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 (2,290,381)-(2,290,381)
Total Noncurrent Assets 1,108,983 -1,108,983
Total Assets 1,261,498 1,328,484 2,589,982
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 194,352 -194,352
Total Deferred Outflows of Resources 194,352 -194,352
LIABILITIES
Current Liabilities
Accounts payable 17,484 73,476 90,960
Accrued wages 5,237 -5,237
Due to other funds 6,024 -6,024
Other 17,055 -17,055
Compensated absences 6,395 -6,395
Development deposits 100,000 -100,000
Total Current Liabilities 152,195 73,476 225,671
Noncurrent Liabilities
Long-Term Debt
Compensated absences 66,682 -66,682
Net pension liability 303,078 -303,078
Total Noncurrent Liabilities 369,760 -369,760
Total Liabilities 521,955 73,476 595,431
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 19,673 -19,673
Total Deferred Inflows of Resources 19,673 -19,673
NET POSITION
Net investment in capital assets 1,108,983 -1,108,983
Unrestricted (deficit)(194,761)1,255,008 1,060,247
TOTAL NET POSITION $914,222 $1,255,008 $2,169,230
Page 114
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2016
Buffalo Grove
Golf
Refuse
Service
Total Nonmajor
Enterprise
Funds
OPERATING REVENUES
Daily greens fee and memberships $685,129 $-$685,129
Merchandise sales 70,139 -70,139
Cart, club, and other rentals 208,299 -208,299
Driving range fees 58,014 -58,014
SW ANCC user fees -1,135,748 1,135,748
Miscellaneous 25,678 -25,678
Total Operating Revenues 1,047,259 1,135,748 2,183,007
OPERATING EXPENSES
Golf operations 1,090,783 -1,090,783
Cost of sales - pro shop 52,140 -52,140
Refuse operations -703,565 703,565
Depreciation 32,784 -32,784
Total Operating Expenses 1,175,707 703,565 1,879,272
Operating Income (Loss)(128,448)432,183 303,735
TRANSFERS
Transfers in 174,359 -174,359
Transfers out (70,600)(275,000)(345,600)
Total Transfers 103,759 (275,000)(171,241)
Change in Net Position (24,689)157,183 132,494
NET POSITION - Beginning of Year 938,911 1,097,825 2,036,736
NET POSITION - END OF YEAR $914,222 $1,255,008 $2,169,230
Page 115
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CASH FLOW S
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2016
Buffalo Grove
Golf
Refuse
Service Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Received from customers $1,081,020 $1,135,748 $2,216,768
Paid to suppliers for goods and services (627,891)(630,089)(1,257,980)
Paid to employees for services (428,954)-(428,954)
Net Cash Flows From Operating Activities 24,175 505,659 529,834
CASH FLOWS FROM NONCAPITAL FINANCING
AC TIVITIES
Transfers in 174,359 -174,359
Transfers (out)(68,576)(275,000)(343,576)
Net Cash Flows From Noncapital Financing Activities 105,783 (275,000)(169,217)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (18,988)-(18,988)
Net Cash Flows From Capital and Related Financing
Activities (18,988)-(18,988)
Net Change in Cash and Cash Equivalents 110,970 230,659 341,629
CASH AND CASH EQUIVALENTS - Beginning of Year -937,750 937,750
CASH AND CASH EQUIVALENTS - END OF YEAR $110,970 $1,168,409 $1,279,379
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss)$(128,448)$432,183 $303,735
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Flows From Operating Activities
Depreciation 32,784 -32,784
Changes in assets and liabilities
Accounts payable (19,260)73,476 54,216
Accrued wages 2,224 -2,224
Accounts receivable 33,761 -33,761
Compensated absences 13,728 -13,728
Deferred outflows - pensions (86,890)-(86,890)
Deferred inflows - pensions (12,981)-(12,981)
Net pension liability 89,257 -89,257
Deposits 100,000 -100,000
NET CASH FLOWS FROM OPERATING
AC TIVITIES $24,175 $505,659 $529,834
NONCASH CAPITAL AND RELATED FINANCING
AC TIVITIES
None
Page 116
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Daily greens fee and memberships $717,500 $685,129 $(32,371)
Merchandise sales 70,850 70,139 (711)
Cart, club, and other rentals 236,300 208,299 (28,001)
Driving range fees 61,500 58,014 (3,486)
Miscellaneous 15,500 25,678 10,178
Total Operating Revenues 1,101,650 1,047,259 (54,391)
OPERATING EXPENSES
Golf operations 1,192,963 1,090,783 102,180
Cost of sales - pro shop 50,000 52,140 (2,140)
Add: Capital assets capitalized -12,804 (12,804)
Total Operating Expenses 1,242,963 1,155,727 87,236
Operating Income (Loss) - Non-GAAP Budgetary
Basis (141,313)(108,468)32,845
TRANSFERS
Transfers in 146,919 174,359 27,440
Transfers out -(70,600)(70,600)
Net Transfers 146,919 103,759 (43,160)
Change in net position - Non-GAAP Budgetary
Basis $5,606 $(4,709)$(10,315)
Page 117
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
SW ANCC user fees $1,040,000 $1,135,748 $95,748
Total Operating Revenues 1,040,000 1,135,748 95,748
OPERATING EXPENSES
Refuse operations 751,740 703,565 48,175
Total Operating Expenses 751,740 703,565 48,175
Operating Income - Non-GAAP Budgetary Basis 288,260 432,183 143,923
TRANSFERS
Transfers out (275,000)(275,000)-
Net Transfers (275,000)(275,000)-
Change in net position - Non-GAAP Budgetary
Basis $13,260 $157,183 $143,923
Page 118
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Water and sewer charges $10,772,975 $10,129,149 $(643,826)
Connection and recapture fees 52,500 175,489 122,989
Miscellaneous 3,000,000 249,946 (2,750,054)
Total Operating Revenues 13,825,475 10,554,584 (3,270,891)
OPERATING EXPENSES
Water operations 6,333,472 1,739,505 4,593,967
Sewer operations 5,658,145 3,911,630 1,746,515
Water purchases 1,700,000 1,663,914 36,086
Add: Capital assets capitalized -4,762,569 (4,762,569)
Total Operating Expenses 13,691,617 12,077,618 1,613,999
Operating Income (Loss) - Non-GAAP Budgetary
Basis 133,858 (1,523,034)(1,656,892)
NON-OPERATING REVENUES (EXPENSES)
Intergovernmental - grants -94,326 94,326
Interest Revenue 9,000 14,159 5,159
Interest Expense (277,630)(286,332)(8,702)
Total Non-Operating Revenues (Expenses)(268,630)(177,847)90,783
Net Income (Loss) Before Transfers - Non-
GAAP Budgetary Basis (134,772)(1,700,881)(1,566,109)
TRANSFERS
Transfers out (945,000)(1,037,644)(92,644)
Net Transfers (945,000)(1,037,644)(92,644)
Change in net position - Non-GAAP Budgetary
Basis $(1,079,772)$(2,738,525)$(1,658,753)
Page 119
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Daily greens fee and memberships $819,000 $750,853 $68,147
Merchandise sales 55,080 58,066 (2,986)
Cart, club, and other rentals 248,900 234,655 14,245
Miscellaneous 146,200 150,035 (3,835)
Total Operating Revenues 1,269,180 1,193,609 (75,571)
OPERATING EXPENSES
Golf operations 1,369,886 1,203,530 166,356
Cost of sales - pro shop 45,000 50,058 (5,058)
Add: Capital assets capitalized -53,277 (53,277)
Total Operating Expenses 1,414,886 1,306,865 108,021
Operating (Loss) - Non-GAAP Budgetary Basis (145,706)(113,256)32,450
TRANSFERS
Transfers in 155,020 202,095 47,075
Transfers out -(55,400)(55,400)
Net Transfers 155,020 146,695 (8,325)
Change in net position - Non-GAAP Budgetary
Basis $9,314 $33,439 $24,125
Page 120
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
As of December 31, 2016
Information
Technology
Central
Garage
Building
Maintenance Totals
ASSETS
Current Assets
Cash $100,744 $64,636 $113,351 $278,731
Total Current Assets 100,744 64,636 113,351 278,731
Total Assets 100,744 64,636 113,351 278,731
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions -432,220 317,058 749,278
Total Deferred Outflows of Resources -432,220 317,058 749,278
LIABILITIES
Current Liabilities
Accounts payable 100,400 50,060 82,674 233,134
Accrued wages -14,281 17,562 31,843
Other current liabilities 344 204 440 988
Due to other funds -5,602 4,590 10,192
Total Current Liabilities 100,744 70,147 105,266 276,157
Noncurrent Liabilities
Net pension liability -674,016 494,429 1,168,445
Total Noncurrent Liabilities -674,016 494,429 1,168,445
Total Liabilities 100,744 744,163 599,695 1,444,602
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions -43,751 32,093 75,844
NET POSITION
Unrestricted -(291,058)(201,379)(492,437)
TOTAL NET POSITION $-$(291,058)$(201,379)$(492,437)
Page 121
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2016
Information
Technology
Central
Garage
Building
Maintenance Totals
OPERATING REVENUES
Internal service contributions $1,064,828 $1,456,984 $1,198,562 $3,720,374
Total Operating Revenues 1,064,828 1,456,984 1,198,562 3,720,374
OPERATING EXPENSES
Information technology 1,032,609 --1,032,609
Central garage -1,456,426 -1,456,426
Building maintenance --1,205,452 1,205,452
Total Operating Expenses 1,032,609 1,456,426 1,205,452 3,694,487
Operating Income (Loss)32,219 558 (6,890)25,887
Income (Loss) Before Transfers 32,219 558 (6,890)25,887
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 -(34,517)(26,017)(60,534)
NET POSITION (DEFICIT) - Beginning of Year -(256,541)(175,362)(431,903)
NET POSITION (DEFICIT) - END OF
YEAR $-$(291,058)$(201,379)$(492,437)
Page 122
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Internal service contributions $1,224,249 $1,064,828 $(159,421)
Total Operating Revenues 1,224,249 1,064,828 (159,421)
OPERATING EXPENSES
Information technology 1,224,249 1,032,609 191,640
Total Operating Expenses 1,224,249 1,032,609 191,640
Operating Income -32,219 32,219
TRANSFERS
Transfers out -(32,219)(32,219)
Total Transfers -(32,219)(32,219)
Change in net position $-$-$-
Page 123
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Internal service contributions $1,791,878 $1,456,984 $(334,894)
Total Operating Revenues 1,791,878 1,456,984 (334,894)
OPERATING EXPENSES
Central garage 1,791,878 1,456,426 335,452
Total Operating Expenses 1,791,878 1,456,426 335,452
Operating Income -558 558
TRANSFERS
Transfers out -(35,075)(35,075)
Total Transfers -(35,075)(35,075)
Change in net position $-$(34,517)$(34,517)
Page 124
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, 2016
Original And
Final Budget Actual
Variance with
Final Budget
OPERATING REVENUES
Internal service contributions $1,396,763 $1,198,562 $(198,201)
Total Operating Revenues 1,396,763 1,198,562 (198,201)
OPERATING EXPENSES
Building maintenance 1,396,763 1,205,452 191,311
Total Operating Expenses 1,396,763 1,205,452 191,311
Operating Income -(6,890)(6,890)
TRANSFERS
Transfers out -(19,127)(19,127)
Total Transfers -(19,127)(19,127)
Change in net position $-$(26,017)$(26,017)
Page 125
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CASH FLOW S
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2016
Information
Technology
Central
Garage
Building
Maintenance Totals
CASH FLOWS FROM OPERATING
AC TIVITIES
Received from interfund charges $1,064,828 $1,456,984 $1,198,562 $3,720,374
Paid to suppliers for goods and services (1,008,950)(617,481)(509,916)(2,136,347)
Paid to employees for services 344 (787,867)(580,858)(1,368,381)
Net Cash Flows From Operating
Activities 56,222 51,636 107,788 215,646
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers (out)(32,219)(29,473)(14,537)(76,229)
Net Cash Flows From Noncapital
Financing Activities (32,219)(29,473)(14,537)(76,229)
Net Change in Cash and Cash
Equivalents 24,003 22,163 93,251 139,417
CASH AND CASH EQUIVALENTS - Beginning
of Year 76,741 42,473 20,100 139,314
CASH AND CASH EQUIVALENTS - END
OF YEAR $100,744 $64,636 $113,351 $278,731
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss)$32,219 $558 $(6,890)$25,887
Changes in assets and liabilities
Accounts payable 23,659 16,827 69,293 109,779
Accrued wages 344 5,245 11,283 16,872
Deferred outflows - pensions -(233,903)(181,496)(415,399)
Deferred inflows - pensions -(16,510)(9,099)(25,609)
Net pension liability -279,419 224,697 504,116
NET CASH FLOWS FROM
OPERATING ACTIVITIES $56,222 $51,636 $107,788 $215,646
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
Page 126
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
As of December 31, 2016
Police Pension
Firefighters'
Pension Totals
ASSETS
Cash $1,549,434 $173,230 $1,722,664
Investments
U.S. treasuries 9,636,997 3,026,889 12,663,886
U.S. agencies 6,007,441 14,717,810 20,725,251
Mutual funds - other than bond funds 5,759,944 32,901,848 38,661,792
Equity securities 29,132,573 -29,132,573
Municipal bonds -3,213,043 3,213,043
Corporate bonds 7,448,510 -7,448,510
Receivables
Interest 74,182 124,138 198,320
Prepaid items 3,426 2,412 5,838
Due from primary government 52,237 53,333 105,570
Total Assets 59,664,744 54,212,703 113,877,447
LIABILITIES
Accounts payable 52,346 33,951 86,297
Due to primary government 84,629 307 84,936
Total Liabilities 136,975 34,258 171,233
NET POSITION
Restricted for pensions $59,527,769 $54,178,445 $113,706,214
Page 127
VILLAGE OF BUFFALO GROVE
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended December 31, 2016
Police Pension
Firefighters'
Pension Total
AD DITIONS
Contributions
Employer $2,430,017 $2,166,040 $4,596,057
Plan members 622,198 516,422 1,138,620
Total Contributions 3,052,215 2,682,462 5,734,677
Investment income
Interest 129,646 598,544 728,190
Net appreciation in fair value of investments 3,477,459 2,949,397 6,426,856
Total Investment Income 3,607,105 3,547,941 7,155,046
Less Investment expense 188,991 132,428 321,419
Net Investment Income 3,418,114 3,415,513 6,833,627
Total Additions 6,470,329 6,097,975 12,568,304
DEDUCTIONS
Pension benefits and refunds 3,283,543 2,225,410 5,508,953
Administration 43,969 42,284 86,253
Total Deductions 3,327,512 2,267,694 5,595,206
Change in Net Position 3,142,817 3,830,281 6,973,098
NET POSITION - Beginning of Year 56,384,952 50,348,164 106,733,116
NET POSITION, END OF YEAR $59,527,769 $54,178,445 $113,706,214
Page 128
VILLAGE OF BUFFALO GROVE
POLICE PENSION FUND
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31, 2016
Original and
Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $2,440,239 $2,430,017 $(10,222)
Plan members 663,222 622,198 (41,024)
Total contributions 3,103,461 3,052,215 (51,246)
Investment Income
Interest 495,000 129,646 (365,354)
Net appreciation in fair value of investments 2,635,000 3,477,459 842,459
Total investment income 3,130,000 3,607,105 477,105
Less Investment expense 250,000 188,991 61,009
Net investment income 2,880,000 3,418,114 538,114
Total additions 5,983,461 6,470,329 486,868
Deductions
Pension benefits and refunds 3,320,216 3,283,543 36,673
Administration 42,500 43,969 (1,469)
Total deductions 3,362,716 3,327,512 35,204
Change in net position $2,620,745 3,142,817 $522,072
Net position, beginning of year 56,384,952
Net position, end of year $59,527,769
Page 129
VILLAGE OF BUFFALO GROVE
FIREFIGHTERS' PENSION FUND
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION - BUDGET AND ACTUAL
For the Year Ended December 31, 2016
Original and
Final Budget Actual
Variance and
Final Budget
Additions
Contributions
Employer $2,174,632 $2,166,040 $(8,592)
Plan members 525,067 516,422 (8,645)
Total contributions 2,699,699 2,682,462 (17,237)
Investment Income
Interest 475,000 598,544 123,544
Net appreciation in fair value of investments 1,455,000 2,949,397 1,494,397
Total investment income 1,930,000 3,547,941 1,617,941
Less Investment expense 125,000 132,428 (7,428)
Net investment income 1,805,000 3,415,513 1,610,513
Total additions 4,504,699 6,097,975 1,593,276
Deductions
Pension benefits and refunds 1,966,491 2,225,410 (258,919)
Administration 40,000 42,284 (2,284)
Total deductions 2,006,491 2,267,694 (261,203)
Change in net position $2,498,208 3,830,281 $1,332,073
Net position, beginning of year 50,348,164
Net position, end of year $54,178,445
Page 130
Page 131
VILLAGE OF BUFFALO GROVE
AGENCY FUND
SCHOOL AND PARK DONATIONS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Year Ended December 31, 2016
Balances Balances
January 1 Additions Deletions December 31
Assets
Cash & Cash Equivalents 525,757$ 114,582$ 386,845$ 253,494$
Liabilities
Due to Other Governments 525,757$ 114,582$ 386,845$ 253,494$
Statistical Section
Contents Page
Financial Trends 132 - 141
Revenue Capacity 142 - 152
Debt Capacity 153 - 157
Demographic and Economic Information 158 - 161
Operating Information 162 - 165
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 132
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
Fiscal Years 2016 2015 2014 2013
Governmental Activities
Net Investment in Capital Assets 51,756,933$ 50,609,420$ 50,712,982$ 51,011,919$
Restricted 1,632,934 1,974,115 2,664,110 2,412,222
Unrestricted (36,592,629) (34,637,401) 11,048,700 12,387,400
Total Governmental Activities Net Position 16,797,238$ 17,946,134$ 64,425,792$ 65,811,541$
Business-type Activities
Net Investment in Capital Assets 35,494,070$ 38,372,943$ 35,871,503$ 35,553,648$
Unrestricted 11,034,826 7,770,059 11,067,173 11,515,793
Total Business-type Activities Net Position 46,528,896$ 46,143,002$ 46,938,676$ 47,069,441$
Primary Government
Net Investment in Capital Assets 87,251,003$ 88,982,363$ 86,584,485$ 86,565,567$
Restricted 1,632,934 1,974,115 2,664,110 2,412,222
Unrestricted (25,557,803) (26,867,342) 22,115,873 23,903,193
Total Primary Government Net Position 63,326,134$ 64,089,136$ 111,364,468$ 112,880,982$
*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 133
2012**2011 2010 2009 2008 2007*
52,096,183$ 53,362,147$ 53,742,519$ 54,563,385$ 53,551,265$ 53,702,484$
6,268,039 1,918,263 956,803 140,712 80,438 33,167
11,550,011 13,429,876 15,738,272 16,590,052 23,259,339 27,184,985
69,914,233$ 68,710,286$ 70,437,594$ 71,294,149$ 76,891,042$ 80,920,636$
36,706,161$ 37,807,146$ 38,410,966$ 39,808,889$ 41,374,269$ 42,667,740$
11,242,301 12,989,124 14,644,341 15,011,209 17,003,316 17,509,194
47,948,462$ 50,796,270$ 53,055,307$ 54,820,098$ 58,377,585$ 60,176,934$
88,802,344$ 91,169,293$ 92,153,485$ 94,372,274$ 94,925,534$ 96,370,224$
6,268,039 1,918,263 956,803 140,712 80,438 33,167
22,792,312 26,419,000 30,382,613 31,601,261 40,262,655 44,694,179
117,862,695$ 119,506,556$ 123,492,901$ 126,114,247$ 135,268,627$ 141,097,570$
Page 134
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Net Position
Last Ten Fiscal Years
Fiscal Years 2016 2015 2014 2013
Expenses
Governmental Activities
General Government 6,441,707$ 5,885,811$ 5,843,623$ 6,567,545$
Public Safety 30,528,127 27,256,737 22,920,180 21,964,989
Public Works 7,099,195 10,901,771 13,553,093 15,091,414
Building and Grounds 979,679 649,835 - -
Interest 356,799 285,863 302,781 374,511
Total Governmental Activities Expenses 45,405,507$ 44,980,017$ 42,619,677$ 43,998,459$
Business-type Activities
Water & Sewer 9,001,632 8,561,248 8,435,463 8,079,364
Refuse Service 703,565 702,106 803,039 902,811
Golf Courses 2,886,404 3,288,882 2,739,077 2,942,747
Total Business-type Activities Expenditures 12,591,601 12,552,236 11,977,579 11,924,922
Total Primary Government Expenses 57,997,108$ 57,532,253$ 54,597,256$ 55,923,381$
Program Revenue
Governmental Activities
Charges for Services
General Government 1,855,506$ 1,624,134$ 1,901,996$ 1,207,504$
Public Safety 1,718,647 1,745,580 1,623,171 1,498,819
Public Works 1,151,594 61,194 88,665 82,393
Operating Grants and Contributions 1,281,732 1,229,028 1,285,396 1,161,509
Total Governmental Activities Program
Revenues 6,007,479 4,659,936 4,899,228 3,950,225
Business-type activities
Charges for Services
Water & Sewer 10,304,638 9,495,691 9,076,261 8,692,812
Refuse Service 1,135,748 1,039,876 1,044,442 1,040,878
Golf Courses 2,240,868 2,335,928 2,257,494 1,178,368
Operating Grants and Contributions - - - 1,072,499
Capital Grants and Contributions 94,326 - - -
Total Business-type Activities Program
Revenues 13,775,580 12,871,495 12,378,197 11,984,557
Total Primary Government Revenues 19,783,059$ 17,531,431$ 17,277,425$ 15,934,782$
Net (Expense) Revenue
Governmental Activities (39,398,028)$ (40,320,081)$ (37,720,449)$ (40,048,234)$
Business-type Activities 1,183,979 319,259 400,618 59,635
Total Primary Government Net Expense (38,214,049)$ (40,000,822)$ (37,319,831)$ (39,988,599)$
*Transitional fiscal year May 1, 2007 through December 31, 2007
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
Page 135
2012**2011 2010 2009 2008 2007*
6,101,008$ 5,010,274$ 4,769,874$ 6,182,475$ 5,705,497$ 4,019,032$
22,344,117 22,657,643 22,312,910 22,753,590 21,115,737 15,324,061
12,026,911 11,106,433 11,081,374 10,421,659 13,222,026 8,232,685
- - - - - -
384,180 248,539 194,655 334,142 379,501 216,379
40,856,216$ 39,022,889$ 38,358,813$ 39,691,866$ 40,422,761$ 27,792,157$
8,931,336 8,753,149 9,865,981 9,519,169 8,684,651 5,165,701
874,366 935,365 942,757 944,392 1,017,164 777,716
2,991,170 3,057,912 3,043,367 3,118,647 3,423,903 2,637,072
12,796,872 12,746,426 13,852,105 13,582,208 13,125,718 8,580,489
53,653,088$ 51,769,315$ 52,210,918$ 53,274,074$ 53,548,479$ 36,372,646$
1,226,552$ 1,240,547$ 1,195,928$ 977,464$ 1,211,188$ 1,139,242$
1,283,956 1,404,308 1,419,761 1,563,236 1,514,666 1,050,920
118,547 86,421 71,606 50,709 94,670 94,670
1,178,442 1,230,387 1,253,103 1,349,044 1,307,895 950,383
3,807,497 3,961,663 3,940,398 3,940,453 4,128,419 3,235,215
7,464,870 7,782,000 9,091,520 8,008,360 7,538,534 4,799,193
1,050,386 1,036,872 1,041,661 1,004,431 923,207 704,841
2,221,714 2,175,418 2,088,106 2,320,247 2,356,962 2,141,860
- - - - - -
- - - - 133,599 497,875
10,736,970 10,994,290 12,221,287 11,333,038 10,952,302 8,143,769
14,544,467$ 14,955,953$ 16,161,685$ 15,273,491$ 15,080,721$ 11,378,984$
(37,048,719)$ (35,061,226)$ (34,418,415)$ (35,751,413)$ (36,294,342)$ (24,556,942)$
(2,059,902) (1,752,136) (1,630,818) (2,249,170) (2,173,416) (436,720)
(39,108,621)$ (36,813,362)$ (36,049,233)$ (38,000,583)$ (38,467,758)$ (24,993,662)$
Page 136
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Net Position (Cont.)
Last Ten Fiscal Years
Fiscal Years 2016 2015 2014 2013
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property 15,034,583$ 14,742,622$ 14,554,564$ 14,504,750$
Sales and Home Rule 9,095,471 9,274,777 8,455,972 7,803,749
Income and Use 4,994,426 5,409,875 4,104,736 4,737,656
Telecommunications 1,513,254 1,644,309 1,679,653 1,943,811
Utility 2,659,554 2,643,642 2,819,427 2,629,997
Property Transfer 1,115,360 904,311 790,819 760,164
Other 1,110,503 1,092,554 1,113,831 1,052,788
Investment Earnings 65,600 25,061 107,765 54,522
Miscellaneous 1,596,806 1,458,118 1,636,721 1,506,994
Transfers 1,062,190 749,027 1,070,724 951,111
Gain on sale of assets 1,385 1,601 488 -
Total Government Activities 38,249,132 37,945,897 36,334,700 35,945,542
Business-type Activities
Investment Earnings 14,159$ 10,112$ 18,820$ 12,455$
Miscellaneous 249,946 5,737 520,521 -
Transfers (1,062,190) (749,027) (1,070,724) (951,111)
Total Business-type Activities (798,085) (733,178) (531,383) (938,656)
Total Primary Government 37,451,047$ 37,212,719$ 35,803,317$ 35,006,886$
Change in Net Position
Governmental Activities (1,148,896)$ (2,374,184)$ (1,385,749)$ (4,102,692)$
Business-type Activities 385,894 (413,919) (130,765) (879,021)
Total Primary Government Change
in Net Position (763,002)$ (2,788,103)$ (1,516,514)$ (4,981,713)$
Data Source
Audited Financial Statements
Page 137
2012 2011 2010 2009 2008 2007*
14,330,407$ 14,458,248$ 13,657,589$ 12,504,508$ 12,058,815$ 706,749$
7,570,915 6,984,134 7,309,800 7,196,969 8,436,647 5,741,981
5,462,111 3,714,864 4,165,248 3,601,619 4,646,776 2,725,204
2,200,809 2,134,462 2,183,190 2,345,249 2,417,496 1,967,348
2,510,242 2,567,091 2,393,340 - - -
459,036 629,376 545,515 670,762 590,596 600,379
1,070,409 1,044,164 1,017,612 1,006,249 1,076,929 247,827
132,436 133,059 250,290 490,881 810,982 958,715
1,239,906 1,495,155 1,822,276 1,403,283 2,081,112 1,254,948
635,500 553,000 217,000 935,000 80,230 899,950
- - - - - -
35,611,771 33,713,553 33,561,860 30,154,520 32,199,583 15,103,101
27,087$ 41,100$ (46,666)$ (374,632)$ 267,263$ 292,375$
1,259 4,999 2,133 1,315 187,034 -
(635,500) (553,000) (217) (935,000) (80,230) (899,950)
(607,154) (506,901) (44,750) (1,308,317) 374,067 (607,575)
35,004,617$ 33,206,652$ 33,517,110$ 28,846,203$ 32,573,650$ 14,495,526$
(1,436,948)$ (1,347,673)$ (856,555)$ (5,596,893)$ (4,094,759)$ (9,453,841)$
(2,667,056) (2,259,037) (1,675,568) (3,557,487) (1,799,349) (1,044,295)
(4,104,004)$ (3,606,710)$ (2,532,123)$ (9,154,380)$ (5,894,108)$ (10,498,136)$
Page 138
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2016 2015 2014 2013
General Fund
Nonspendable 167,957$ 551,242$ 573,812$ 562,399$
Restricted 229,953 223,622 130,435 162,274
Committed 8,511,306 7,532,123 7,438,256 7,345,420
Unassigned 16,143,726 14,991,907 13,225,644 12,395,113
Reserved - - - -
Unreserved - - - -
Total General Fund 25,052,942 23,298,894 21,368,147 20,465,206
All other Governmental Funds
Restricted 1,632,934 1,974,115 1,965,328 1,796,997
Assigned - - - 101,213
Unassigned (3,859,964) (3,707,560) (2,324,296) (927,395)
Unreserved - - - -
Unreserved, Reported in
Special Revenue Funds - - - -
Capital Projects Funds - - - -
Total All other Governmental Funds (2,227,030) (1,733,445) (358,968) 970,815
Total Governmental Funds 22,825,912$ 21,565,449$ 21,009,179$ 21,436,021$
*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 139
2012**2011 2010 2009 2008 2007*
518,437$ 1,031,936$ -$ -$ -$ -$
- - - - - -
7,335,685 7,948,344 - - - -
10,759,935 9,871,895 - - - -
- - 1,138,273 1,248,428 1,536,571 1,846,137
- - 17,763,849 18,307,270 22,444,819 27,556,199
18,614,057 18,852,175 18,902,122 19,555,698 23,981,390 29,402,336
6,112,703 1,918,263 - - - -
144,075 146,116 - - - -
(253,826) (234,206) - - - -
- - 20,271 (12,970) 33,167 486,946
- - 2,124,937 1,252,015 1,239,501 1,942,258
- - 927,626 903,315 1,911,178 2,436,815
6,002,952 1,830,173 3,072,834 2,142,360 3,183,846 4,866,019
24,617,009$ 20,682,348$ 21,974,956$ 21,698,058$ 27,165,236$ 34,268,355$
Page 140
VILLAGE OF BUFFALO GROVE, ILLINOIS
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2016 2015 2014***2013
Revenues
Property Taxes 15,034,583$ 14,742,622$ 14,554,564$ 14,504,750$
Other Taxes 9,701,271 9,712,718 9,564,978 19,240,365
Licenses and Permits 326,177 1,330,769 207,312 294,622
Intergovernmental 11,843,812 1,931,512 11,081,081 997,371
Fines and Forfeitures 3,025,628 350,042 1,803,317 1,647,364
Charges for Services 1,504,400 12,271,219 1,371,779 1,010,868
Investment Income 65,600 25,061 107,765 54,522
Miscellaneous 1,610,746 1,404,841 2,107,628 1,506,994
Total Revenue 43,112,217 41,768,784 40,798,424 39,256,856
Expenditure
Current
General Government 5,693,142$ 5,084,772$ 5,522,549 6,465,636
Public Safety 27,407,019 25,237,115 22,773,535 21,805,910
Public Works 6,978,307 8,092,735 10,878,278 12,178,705
Capital Outlay 8,252,604 2,828,194 2,018,451 1,347,276
Debt Service
Principal 525,000 510,000 790,000 940,000
Interest 371,456 296,747 313,665 385,395
Other Charges - - - -
Total Expenditures 49,227,528 42,049,563 42,296,478 43,122,922
Excess (Deficiency) of Revenues
over Expenditures (6,115,311) (280,779) (1,498,054) (3,866,066)
Other Financing Sources (Uses)
Transfers In 3,402,595$ 3,521,760$ 2,552,288 2,119,313
Transfers Out (2,253,984) (2,686,312) (1,481,564) (1,434,235)
Sales of fixed assets 1,385 1,601 488
Auction Proceeds - - - -
Bond Issued 6,125,000 - - -
Premium on Issuance of Debt 100,778 - - -
Transfer to Escrow Agent - - - -
Total Other Financing Sources (Uses)7,375,774 837,049 1,071,212 685,078
Net Change in Fund Balance 1,260,463$ 556,270$ (426,842) (3,180,988)
Debt Service
as a Percentage of Non-Capital Expenditures 2.19%2.06%2.68%3.17%
*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 141
2012**2011 2010 2009 2008 2007*
14,330,407$ 14,458,248$ 13,657,589$ 12,504,508$ 12,058,815$ 5,797,846$
18,325,614 17,074,091 17,614,705 14,806,744 17,168,444 11,282,739
275,434 280,139 278,164 276,857 278,965 245,148
1,011,949 1,060,719 1,096,794 1,106,234 1,134,407 815,669
1,283,956 1,404,308 1,419,761 1,559,190 1,514,666 1,050,918
1,236,158 1,216,497 1,145,679 970,537 1,200,381 1,028,810
132,457 133,196 249,396 490,881 790,244 911,444
1,239,861 1,442,617 1,720,640 1,444,610 2,081,112 1,254,948
37,835,836 37,069,815 37,182,728 33,159,561 36,227,034 22,387,522
5,556,101 5,509,433 4,979,904 5,596,822 5,458,962 3,455,213
21,791,218 22,008,351 21,802,732 20,882,745 20,499,004 14,211,380
9,865,723 8,256,079 8,704,005 10,337,090 10,792,931 7,225,387
1,561,904 1,510,924 3,157,156 1,245,940 1,286,175 502,701
920,000 1,055,000 980,000 1,165,000 1,150,000 1,312,381
285,420 248,539 194,655 334,142 379,501 424,220
- - 127,930 - - -
39,980,366 38,588,326 39,946,382 39,561,739 39,566,573 27,131,282
(2,144,530) (1,518,511) (2,763,654) (6,402,178) (3,339,539) (4,743,760)
2,621,132 1,891,354 2,153,190 2,909,382 4,121,451 3,064,166
(1,985,632) (1,338,354) (1,936,190) (1,974,382) (4,041,221) (2,164,216)
45 52,538 103,565 - - -
6,000,000 - 7,760,000 - - -
91,669 - 178,229 - - -
- - (5,218,242) - - -
6,727,214 605,538 3,040,552 935,000 80,230 899,950
4,582,684 (912,973) 276,898 (5,467,178) (3,259,309) (3,843,810)
3.14%3.52%3.19%3.91%4.00%6.52%
Page 142
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed and Actual Value of Taxable Property
Last Ten Levy Years
Tax Levy Residential Commercial Industrial Other
Year Property Property Property Property
2016 *1,249,925,407 *302,093,041 *3,611,330 *636,718
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 143
Estimated Estimated
Total Assessed Total Direct Actual Taxable Actual Taxable
Value Tax Rate Value Value (%)
*1,556,266,496 *1.0363 *4,668,799,488 *33.333%
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 144
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 2016 2015 2014 2013 2012
Lake County
Village of Buffalo Grove 0.921 0.955 0.993 0.983 0.929
County, including Forest Preserve 0.825 0.871 0.893 0.881 0.820
Combined School Districts (102, 125, 532)6.680 7.034 7.164 7.068 6.779
Buffalo Grove Park District 0.492 0.517 0.553 0.537 0.511
Vernon Area Public Library 0.293 0.308 0.317 0.311 0.441
All Other (3)0.104 0.110 0.113 0.105 0.106
Total (4)9.315 9.794 10.033 9.885 9.586
-4.90%-2.38%1.50%3.12%10.26%
Cook County
Village of Buffalo Grove N/A 1.316 1.235 1.211 1.030
County, including Forest Preserve N/A 0.621 0.126 0.125 0.594
Metropolitan Water Reclamation District
of Greater Chicago N/A 0.426 0.430 0.417 0.370
Combined School Districts (21, 214, 512)N/A 8.989 8.657 8.053 6.917
Buffalo Grove Park District N/A 0.714 0.677 0.658 0.557
Indian Trails Public Library District N/A 0.534 0.529 0.504 0.463
All Other (3)N/A 0.130 0.094 0.129 0.187
Total (5)N/A 12.730 11.748 11.097 10.118
Percentage Change Year -to-Year N/A 8.36%5.86%9.68%9.15%
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 145
2011 2010 2009 2008 2007
0.852 0.797 0.750 0.665 0.649
0.755 0.703 0.664 0.652 0.645
6.158 5.610 5.301 5.102 5.066
0.452 0.425 0.351 0.370 0.380
0.385 0.315 0.301 0.222 0.219
0.092 0.102 0.094 0.092 0.092
8.694 7.952 7.461 7.103 7.051
9.33%6.58%5.04%0.74%-4.96%
0.886 0.810 0.691 0.670 0.729
0.520 0.474 0.464 0.466 0.499
0.320 0.274 0.261 0.252 0.263
6.565 5.792 5.103 5.004 5.035
0.479 0.439 0.371 0.376 0.416
0.393 0.347 0.307 0.308 0.297
0.107 0.071 0.068 0.067 0.079
9.270 8.207 7.265 7.143 7.318
12.95%12.97%1.71%-2.39%-8.98%
Page 146
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Property Taxpayers
Current Fiscal Year and Eight Years Ago
2016
Percentage
of Total
Village
Equalized Taxable
Assessed Assessed
Taxpayer Valuation Rank Valuation
Chevy Chase Business Park Ltd 27,410,584$ 1 1.786%
Hamilton Partners(1)12,230,070 2 0.606%
Millbrook 9,532,000 3 0.604%
Riverwalk II LLC 9,109,603 4 0.577%
Penobscot Management LLC(3)9,036,652 5 0.573%
Riverwalk South LLC(2)8,264,447 6 0.549%
Aptakisic Creek Corporate Park, LLC 7,827,747 7 0.524%
Arthur J. Rogers and Company (4)7,487,894 8 0.522%
Manufactures Life Insurance 6,310,270 9 0.408%
MFREVF-Windbrooke LP 6,053,195 10 0.400%
Amli at Chevy Chase, LP - -
Remax Consumers Plastics, Inc - -
Inland Wooland LLC - -
NTL Shopping Plaza Inc - -
103,262,462$ 6.549%
(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
(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 mulitiple parcels, and it is possible that some parcels and their valuations have been
overlooked.
Page 147
2008
Percentage
of Total
Village
Equalized Equalized
Assessed Assessed
Valuation Rank Valuation
18,960,235 2 1.050%
12,986,131 3 0.720%
11,978,786 4 0.660%
- 0.000%
9,405,158 5 0.520%
9,241,551 6 0.510%
- 0.000%
9,012,393 7 0.500%
- 0.000%
- 0.000%
22,307,549 1 1.230%
7,355,354 8 0.410%
6,464,954 9 0.360%
6,289,692 10 0.350%
114,001,803$ 6.310%
Page 148
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
2015 11,678,742$ 11,426,115$ 97.84%3,514,106$ 3,608,468$ 102.69%
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%
Note:
Data Source:
Office of the County Clerk
Page 149
Village Total
Percentage
Collected of Levy
15,034,583$ 98.96%
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%
Page 150
VILLAGE OF BUFFALO GROVE, ILLINOIS
Sales Tax Revenue and Number of Principal Payers
Revenue By Category
Last Ten Calendar Years
2016 2015 2014 2013
General Merchandise $86,125 66,228$ *9,098$ 10,105$
Food 1,481,195 1,552,983 1,080,556 1,133,605
Drinking and Eating Places 1,118,330 1,062,206 1,023,545 1,025,547
Apparel 92,409 94,538 104,229 120,210
Furniture, Households and radio 369,583 521,007 356,095 463,678 *
Lumber, Building and Hardware 2,074,008 1,879,818 1,666,708 1,236,689
Automotive Filling Stations 867,250 918,216 947,278 857,713
Drugs and Miscellaneous Retail 1,986,578 1,790,381 2,349,469 1,915,937
Agriculture and All Other 2,231,299 2,313,502 1,693,506 1,572,248
Manufacturers 220,927 351,808 270,063 285,848
10,550,687$ 10,550,687$ 9,500,547$ 8,621,580$
Total Number of Payers 1,022 1,043 974 972
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 151
Calendar Year
2012 2011 2010 2009 2008 2007
17,526$ 18,514$ 3,901$ 4,637$ 5,819$ 3,793$
1,193,312 1,244,667 1,362,170 1,357,378 1,415,835 1,371,195
997,738 921,617 933,212 941,804 906,628 874,307
130,163 129,402 128,663 112,951 104,376 110,386
437,774 378,836 415,396 223,008 521,316 422,342
812,434 534,413 402,483 716,935 1,379,764 2,181,496
954,996 853,864 959,870 1,222,500 1,177,121 1,715,400
1,847,550 1,982,824 1,431,121 1,432,484 1,285,513 1,237,894
1,347,303 1,193,620 1,062,978 1,257,806 2,082,955 1,777,144
334,442 378,326 379,893 399,141 390,034 338,494
8,073,238$ 7,636,083$ 7,079,687$ 7,668,644$ 9,269,361$ 10,032,451$
966 1,286 997 975 1,002 1,196
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 152
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
2016 1.00%6.50%
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%
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Illinois Department of Revenue
Page 153
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
12/31/2016 15,881,408$ -$ 366,060$ 6,894,447$ 23,141,915$
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
*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 154
Ratio of
Total
Outstanding Debt
Debt to Total Outstanding
Equalized Outstanding as a Percentage
Assessed Debt of Personal
Valuation Per Capita (1)Income
0.50%557.64 1.19%
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%
Page 155
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)
2016 15,881,408$ -$ 15,881,408$ 0.34%382.68
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
*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 156
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Governmental Activities Debt
As of December 31, 2016
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 33,950,000$ 17.83%6,053,285$
Killdeer Countryside Community Consolidated #96 155,000 38.30%59,365
Aptakisic-Tripp Community Consolidated #102 3,385,000 76.74%2,597,649
Lincolnshire-Half Day District #103 6,270,000 12.08%757,416
Adlai E. Stevenson H.S. District # 125 7,215,000 37.24%2,686,866
Wheeling Township H.S. District #214 49,035,000 3.76%1,843,716
Harper Community College #512 153,255,000 1.68%2,574,684
College of Lake County #532 64,070,000 5.39%3,453,373
Total School Districts 317,335,000 20,026,354
Other Than School Districts
Lake County $186,350,000 5.11%$9,522,485
Lake County Forest Preserve 270,445,000 5.11%13,819,740
Cook County 3,313,286,750 0.21%6,957,902
Cook County Forest Preserve 176,365,000 0.21%370,367
Metropolitan Water Reclamation District 2,802,575,327 0.21%5,885,408
Buffalo Grove Park District 14,420,000 96.23%13,876,366
Wheeling Park District 9,705,000 8.05%781,253
Total Other than School Districts 6,773,147,077 51,213,520
Total Overlapping Debt 7,090,482,077 71,239,874
Total Village of Buffalo Grove Direct Debt 15,640,000 100.00%15,640,000
Total Direct and Overlapping Debt 7,106,122,077$ 86,879,874$
*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 157
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Legal Debt Margin
December 31, 2016
Under the 1970 Illinois Constitution, there is no legal limit for home rule municipalities except as
set by the General Assembly.
Page 158
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
2016 41,500 E 1,556,266,496$ 37,500 1,949,794,500$ 46,983 1 5.7%
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%
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 159
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Village Employers
Current Year and Nine Years Ago
2016 2007
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%
Crosscom National, LLC 170 11 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 160
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Employees
Last Ten Years
Function/Program 2016 2015 2014 2013
General Government
Administration
Village Managers Office 5.0 6.0 7.5 5.5
Planning - - 1.5 1.5
Information Technology - - 3.0 3.5
Finance 9.0 8.0 10.0 9.5
Building and Zoning 12.0 12.0 9.5 10.0
Public Safety
Police
Full-Time Police Officers 63.0 63.0 63.0 64.0
Community Service Officers 3.0 3.0 3.0 3.0
Civilians 15.5 15.0 15.0 17.0
Fire
Full-time Firefighters/Paramedics 59.0 59.0 58.0 58.0
Civilians 1.0 1.0 1.5 3.5
Public Works
Public Works Administration 6.0 6.0 6.0 5.0
Streets/Forestry 20.0 20.0 18.5 18.5
Water/Sewer 9.0 10.0 9.0 8.0
Central garage 5.5 5.5 5.5 5.5
Building Maintenance 6.0 6.0 6.0 4.0
Recreation
Administration 3.0 19.5 19.5 18.0
Grounds Maintenance - 11.5 11.5 16.0
217.0 245.5 248.0 250.5
Recreation
Seasonal 24.5 24.5 24.5 24.5
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Village Finance Department
Page 161
2012 2011 2010 2009 2008 2007*
4.5 4.0 4.0 4.5 5.0 5.0
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 8.5 9.0 9.5 9.5
10.0 10.0 10.0 10.0 10.5 10.5
69.0 69.0 69.0 71.0 71.0 71.0
3.0 3.0 3.0 3.0 3.0 3.0
16.5 17.5 17.5 20.5 21.5 21.5
62.0 62.0 62.0 62.0 62.0 61.0
3.5 6.0 6.0 6.0 6.0 6.0
11.0 11.0 12.0 12.0 14.5 14.5
20.0 20.0 20.0 20.0 20.0 20.0
13.0 13.0 13.0 13.0 14.0 14.0
5.5 5.5 5.5 5.5 5.0 5.0
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
264.0 267.0 268.0 274.0 279.5 278.5
34.0 34.0 34.0 34.0 34.0 34.0
Page 162
VILLAGE OF BUFFALO GROVE, ILLINOIS
Operating Indicators
Last Ten Fiscal Years
Function/Program 2016 2015 2014 2013
General Government
Building and Zoning
Building Permits Issued 2,957 2,582 2,833 2,651
Building Inspections Conducted 9,053 11,625 7,074 7,456
Property Maintenance Inspections Conducted 2,160 1,894 3,172 3,288
Public Safety
Police
Physical Arrests 521 809 886 759
Parking Violations 5,754 3,766 3,634 2,984
Traffic Violations 6,054 7,969 8,349 13,171
DUI Arrests 74 97 154 124
Vehicle Crashes 1,473 363 1,429 1,507
Fire
Ambulance Calls/EMS 3,160 3,123 3,385 2,613
Service Calls 309 340 1,245 483
Fire Calls 1,279 1,585 821 865
Auto Aid/Mutual Aid 987 1,055 1,063 654
Public Works
Streets
Street Resurfacing (Miles)11.40 2.45 3.28 10.84
Parks and Recreation
Park Sites 46 46 46 46
Golf Course - Combined
Golf Rounds Played - Paid 53,599 68,602 54,689 53,639
Water
New Connections (Tap-ons)19 23 9 27
Average Daily consumption (1)3.60 3.39 3.58 3.70
Peak Daily consumption (1)5.54 5.14 5.40 6.20
(1) - Millions of Gallons
*Transitional fiscal year May 1, 2007 through December 31, 2007
N/A - Not Available
Data Source:
Various Village Departments
Page 163
2012 2011 2010 2009 2008 2007*
2,206 1,930 1,959 1,922 1,746 1,695
15,858 9,661 7,088 6,633 5,054 21,383
5,828 3,462 3,158 2,348 2,159 2,962
671 820 981 989 1,085 2,143
3,341 2,031 2,062 3,267 3,451 4,721
10,826 11,867 11,999 11,373 15,795 12,010
107 164 222 267 337 482
1,260 1,396 1,391 1,414 1,786 1,555
2,789 2,568 2,743 2,553 2,590 2,943
487 1,053 610 718 751 678
698 737 735 774 881 858
680 676 654 672 689 379
5.51 2.90 3.00 4.94 4.94 8.23
46 46 46 46 46 46
59,937 56,918 52,740 59,723 58,097 60,258
15 12 50 7 25 33
3.92 4.09 4.30 4.21 4.09 4.35
7.93 7.84 7.30 7.29 7.03 8.39
Page 164
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Asset Statistics
Last Ten Fiscal Years
Function/Program 2016 2015 2014 2013
Public Safety
Police
Stations 1 1 1 1
Patrol Units 29 30 29 28
Fire
Stations 3 3 3 3
Fire Apparatus 20 20 20 21
Public Works
Streets
Street (Miles)118.22 118.20 118.20 117.70
Streetlights 2,789 2,789 2,786 2,778
Water
Water Mains 181.31 181.14 180.90 180.30
Fire Hydrants 2,501 2,493 2,487 2,477
Wastewater
Sanitary Sewers 139.92 139.92 139.80 139.30
*Transitional fiscal year May 1, 2007 through December 31, 2007
Data Source:
Various Village Departments
Page 165
2012 2011 2010 2009 2008 2007*
1 1 1 1 1 1
34 36 36 36 36 36
3 3 3 3 3 3
21 21 21 21 20 20
117.70 117.70 117.70 117.70 117.50 117.50
2,778 2,778 2,745 2,743 2,714 2,614
180.25 180.25 179.83 179.82 180.63 179.57
2,475 2,475 2,475 2,474 2,474 2,468
139.27 139.27 139.27 139.27 139.24 139.12