2020 CAFR
VILLAGE OF BUFFALO
GROVE, ILLINOIS
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2020
VILLAGE OF BUFFALO GROVE, ILLINOIS
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2020
Prepared by:
Finance Department and General Services
Chris Black
Director of Finance Director and General Services
VILLAGE OF BUFFALO GROVE, ILLINOIS
TABLE OF CONTENTS
1
2
Letter of Transmittal 3 -6
7
INDEPENDENT AUDITORS' REPORT 8 -10
MANAGEMENT’S DISCUSSION AND ANALYSIS 11 -26
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 27 -28
Statement of Activities 29 -30
Fund Financial Statements
Balance Sheet – Governmental Funds 31 -32
Reconciliation of Total Governmental Fund Balance to the
Statement of Net Position – Governmental Activities 33
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 34 -35
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities – Governmental Activities 36
Statement of Net Position – Proprietary Funds 37 -38
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 39 -40
Statement of Cash Flows – Proprietary 41 -42
Statement of Fiduciary Net Position 43
Statement of Changes in Fiduciary Net Position 44
Notes to Financial Statements 45 -105
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
Illinois Municipal Retirement Fund 106
Police Pension Fund 107
Firefighters' Pension Fund 108
FINANCIAL SECTION
PAGE
INTRODUCTORY SECTION
List of Principal Officials
Organizational Chart
Certificate of Achievement for Excellence in Financial Reporting
VILLAGE OF BUFFALO GROVE, ILLINOIS
TABLE OF CONTENTS
REQUIRED SUPPLEMENTARY INFORMATION – Continued
Schedule of Changes in the Employer's Net Pension Liability
Illinois Municipal Retirement Fund 109 -110
Police Pension Fund 111 -112
Firefighters’ Pension Fund 113 -114
Schedule of Investment Returns
Police Pension Fund 115
Firefighters’ Pension Fund 116
Schedule of Changes in the Employer's Total OPEB Liability
Retiree Benefit Plan 117
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General Fund 118
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Debt Service Fund 119
Facilities Development - Capital Projects Fund 120
Street Maintenance - Capital Projects Fund 121
Vehicle Equipment Replacement - Capital Projects Fund 122
Combining Balance Sheet - Nonmajor Governmental Funds 123
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds 124
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Motor Fuel Tax - Special Revenue Fund 125
Local Motor Fuel Tax - Special Revenue Fund 126
Lake Cook Road TIF - Special Revenue Fund 127
Metra Parking Lot - Special Revenue Fund 128
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
Waterworks and Sewerage - Enterprise Fund 129 -130
Arboretum Golf - Enterprise Fund 131 -132
Combing Statement of Net Position - Nonmajor Enterprise Funds 133 -134
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Funds 135
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 136
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
Buffalo Grove Golf - Enterprise Fund 137 -138
Refuse Service - Enterprise Fund 139
Combining Statement of Net Position - Internal Service Funds 140
PAGE
FINANCIAL SECTION – Continued
VILLAGE OF BUFFALO GROVE, ILLINOIS
TABLE OF CONTENTS
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES – Continued
Combining Statement of Revenues, Expenses and Changes in Net Position
Internal Service Funds 141
Combining Statement of Cash Flows - Internal Service Funds 142
Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual
Information Technology - Internal Service Fund 143
Central Garage - Internal Service Fund 144
Building Maintenance - Internal Service Fund 145
Combining Statement of Fiduciary Net Position - Pension Trust Funds 146
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 147
Schedule of Changes in Fiduciary Net Position - Budget and Actual
Police Pension - Pension Trust Fund 148
Firefighter's Pension - Pension Trust Fund 149
Consolidated Year-End Financial Report 150
SUPPLEMENTAL SCHEDULES
Long-Term Debt Requirements
General Obligation Bonds of 2012 151
General Obligation Bonds of 2016 152
General Obligation Refunding Bonds of 2019 153
General Obligation Bonds of 2020 154
IEPA Loan Payable of 2013 - Pump Stations Improvements 155
Installment Note Payable of 2015 156
Net Position by Component – Last Ten Fiscal Years 157 -158
Changes in Net Position – Last Ten Fiscal Years 159 -160
Fund Balances of Governmental Funds – Last Ten Fiscal Years 161 -162
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 163 -164
Assessed Value and Actual Value of Taxable Property – Last Ten Tax Levy Years 165 -166
Direct and Overlapping Property Tax Rates – Last Ten Tax Levy Years 167 -168
STATISTICAL SECTION (Unaudited)
PAGE
FINANCIAL SECTION – Continued
VILLAGE OF BUFFALO GROVE, ILLINOIS
TABLE OF CONTENTS
Principal Property Tax Payers – Current Tax Levy Year and Nine Fiscal Years Ago 169
Property Tax Levies and Collections – Last Ten Tax Levy Years 170
Taxable Sales by Category – Last Ten Calendar Years 171 -172
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 173
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 174 -175
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 176
Schedule of Direct and Overlapping Governmental Activities Debt 177
Schedule of Legal Debt Margin 178
Demographic and Economic Statistics – Last Ten Fiscal Years 179
Principal Employers – Current Fiscal Year and Nine Fiscal Years Ago 180
Full-Time Equivalent Government Employees by Function/Program –
Last Ten Fiscal Years 181 -182
Operating Indicators by Function/Program – Last Ten Fiscal Years 183 -184
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 185 -186
STATISTICAL SECTION (Unaudited) - Continued
PAGE
INTRODUCTORY SECTION
This section includes miscellaneous data regarding the Village of Buffalo Grove, including:
• List of Principal Officials
• Organizational Chart
• Letter of Transmittal
• GFOA Certificate of Achievement for Excellence in Financial Reporting
VILLAGE OF BUFFALO GROVE, ILLINOIS
List of Principal Officials
December 31, 2020
Beverly Sussman Janet M. Sirabian
Village President Village Clerk
Board of Trustees
Gregory S. Pike Andrew Stein
Joanne Johnson Lester Ottenheimer
Eric Smith David Weidenfield
Appointed Officials
Dane Bragg, Village Manager
Jennifer Maltas Chris Black
Deputy Village Manager Finance Director/Village
Treasurer
Steven Casstevens William Baker
Chief of Police Fire Chief
Michael Skibbe 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
Brett Robinson
Administrative Services Director
1
ORGANIZATIONAL CHART
Residents of
Buffalo Grove
Village Board
Village Manager
Community
Development
Building and
Zoning
Environmental
Health
Planning and
Economic
Development
Police
Department
Patrol
Investigations Youth
Services
Police Records
Fire Department
Emergency
Medical Services
Fire Suppression
and Rescue
Fire Prevention
&Education
Emergency
Management
Agency
Office of the
Village Manager
Legal
Human Resources
Communications
Information
Technology
Deputy Village
Clerk
Finance
General Services
Accounting
Services
Village Treasurer
Golf Operations
Public Works
Engineering
Building
Maintenance
Central Garage
Streets
Forestry &
Grounds
Water
Sewer & Drainage
Page 15 of 4242
VILLAGE OF
BUFFALO GROVE
August 5, 2021
The Honorable Beverly Sussman
Members of the Village Board
Citizens of the Village of Buffalo Grove
The Comprehensive Annual Financial Report of the Village of Buffalo Grove for the year ended December 31, 2020
is submitted herewith. This report represents a comprehensive picture of the Village’s financial activities during Fiscal
Year 2020 and the financial condition of its various funds at December 31, 2020. 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.
Lauterbach & Amen, Independent Certified Public Accountants, have issued an unmodified (clean) opinion on the
Village’s financial statements for the fiscal year ended December 31, 2020. 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 1, 1980, giving it additional powers to tax and regulate
in ways not specifically granted, or prohibited, by the Illinois Constitution. As a home rule entity, the Village has no
tax rate or debt limits, nor is it required to conduct a referendum to authorize the issuance of debt or to increase
property taxes.
The Village operates under a Council/Manager form of government. Policy making and legislative authority are vested
with the Village Board, which consists of a President and a six member Board of Trustees. The Village Board is
responsible for passing ordinances and resolutions, adopting the annual budget, appointing committees, and hiring the
Village’s Manager and Attorney. The Village Manager is responsible for carrying out the policies, ordinances and
resolutions of the Village Board, developing and presenting an annual budget, overseeing the day-to-day operations
of the Village, and appointing department directors.
Department of Finance &
General Services Fifty Raupp Blvd. Buffalo Grove, IL. 60089-2100 Phone 847-459-2500 Fax 847-459-0332
3
The Village provides a full range of services including police and fire protection, construction and
maintenance of streets and infrastructure, planning and zoning, water and sewer utilities, and general
administrative services. The Village also operates two golf courses and a municipal commuter parking lot.
To provide these services there were 217 full-time and 55 part-time/seasonal positions in the Fiscal Year
2020 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 ordinance in December
concurrently with the property tax levy.
Legal spending thresholds are established through the annual budget under the budget officer 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 31st of each year. The budget is prepared by fund, and department program. Department
directors may make transfers of budget allocations within a department. Transfers of budget allocations
between funds, however, require the approval of the Village Board. All budget adjustments must be approved
by 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 are received and the liability is
incurred. Accounting records for the Village’s enterprise funds, internal service funds, agency funds and
pension trust funds are maintained on the accrual basis of accounting.
Factors Affecting Financial Condition
Local Economy
The Village of Buffalo Grove, like many other communities, suffered a major economic decline following
the onset of the COVID-19 pandemic in March 2020. The Village was approximately $1 million under the
FY 2020 budget amounts in state sales tax and home rule sales tax combined. However, a financial plan to
reduce operating expenses to mitigate the use of financial reserves was implemented. The plan included a
voluntary separation incentive program, maintaining staff vacancies, and reducing operating expenditures.
The Village is primarily residential, with supporting commercial activity and limited industrial and
manufacturing activity. There are approximately 820 licensed businesses operating in the Village. The
majority of residents are employed in management, professional, sales and office occupations. The Village’s
unemployment statistics have consistently been lower than the national and state averages, with an
unemployment rate at the end of the year at 5.7 percent besting the state by 1.4 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 $17,035,362 which is an increase from the previous year’s total of
$16,321,876 an increase of 4.4 percent.
• Water and Sewer collections increased from $10,938,035 in 2019 to $14,625,649 in 2020. A total
increase of 33.7 percent.
• Sales taxes [net of rebates], both state shared and home rule, generated $9,829,765 in 2020 versus
$9,945,749 in 2019, a decrease of 1.1 percent.
4
The Village equalized assessed valuation increased by $127.8 million or 7.6 percent to $1.82 billion for the
2019 levy year. The increase is due primarily to the triennial and quadrennial assessments in Lake and Cook
Counties respectively as well as new property and development experienced during the year.
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.
Unassigned Budgeted
Fiscal Year Ended Fund Balance Expenditures Percent
December 31, 2011 $ 9,872,594 $29,271,054 33.73%
December 31, 2012 $10,302,515 $29,768,828 34.61%
December 31, 2013 $12,395,113 $35,511,109* 34.90%
December 31, 2014 $13,225,644 $37,083,251 35.67%
December 31, 2015 $14,991,907 $38,165,617 39.29%
December 31, 2016 $16,143,726 $39,177,439 41.21%
December 31, 2017 $18,902,476 $39,477,439 47.88%
December 31, 2018 $17,039,974 $39,717,331 42.90%
December 31, 2020 $18,939,974 $43,948,348 43.10%
December 31, 2020 $20,304,913 $44,657,330 45.47%
* Budget number includes employer pension costs beginning in FY 2013.
Long-Term Financial Planning
The Village compiles a General Fund Five-Year Financial Forecast annually which provides an analysis of
future revenue and expenditures. This report is completed in tandem with the start of the annual budget
process. Other long-range financial plans include the five-year Capital Improvement Plan, Twenty-Year
Water Fund Pro-Forma, and a Twenty-Year Storm Sewer Pro Forma.
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 wil l be involved with or managing over $175
million in capital projects. Transportation-related projects represent a large percentage of the improvements
at $76 million. Routine maintenance of existing streets accounts for $63 million of those projects.
Approximately $32 million and $7.5 million respectively, is allocated to improving and maintaining the water
utility and sanitary sewer systems.
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 2020, the Village of Buffalo Grove issued nearly 2,700 commercial and residential building permits. These
permits represent a total project valuation of $58 million invested into the Buffalo Grove community. In
addition to building permit activity, the following major projects occurred in 2020:
Plans continued into 2020 regarding the Lake Cook Road Corridor implementation strategy to stimulate
redevelopment of land within the corridor consistent with the adopted plan. Northwest Community
Healthcare (NCH) and their development partner, MedProperties Group, continued to redevelop the 7.5 acre
site at 15 S McHenry Road and 125 E Lake Cook Road into new four -story, 70,000 square foot medical
office building to accommodate NCH. The project also includes a 4,900 square foot retail building.
5
The Combined Area Fire Training (CAFT) Facility redevelopment was completed at 851 Krause
Drive. Other developments in 2020 include the Woodman’s unattended gas station, which is owned and
operated by Woodman’s Food Market on 1.5 acres of land just south of its grocery store at 1550 Deerfield
Parkway. The Link Crossing subdivision on 50 acres at 16802 W. Aptakisic Road continued its development
in 2020.
The project by K. Hovnanian Homes will have a total of 187 units and include a mix of 68 clustered single -
family detached homes and 119 two-story townhomes. Plans for future development include a Ricky Rockets
gas station and retail space at 700 East Lake Cook and a new industrial and office headquarters at 1305 Busch
Parkway. Other preliminary plans include a new townhome development and commercial redevelopment
plans in the Village’s commercial corridors.
In July 2020, the Village established a Tax Increment Financing (TIF) District in the Lake Cook Corridor to
help spur private development and implement the Lake Cook Corridor Market Study and Plan. The Village
also took major steps to complete a new Comprehensive Plan to establish a new l ong-term vision for the
entire community.
In 2020, 62 businesses opened, expanded and/or relocated in the Village of Buffalo Grove.
Awards and Acknowledgments
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence
in Financial Reporting to the Village of Buffalo Grove for its Comprehensive Annual Financial Report for
the fiscal year ended December 31, 2019. This was the thirty-eighth consecutive year that the government
has received this prestigious award. To be awarded a Certificate of Achievement, the government published
an easily readable and efficiently organized Comprehensive Annual Financial Report. 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
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the Village also received the GFOA’s Distinguished Budget Presentation Award for its annual
budget document for the fiscal year beginning January 1, 2020. 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 Cheryl Mosqueda, CPA, CGFM. 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 m anner.
Respectfully submitted,
Chris Black
Director of Finance/Village Treasurer
6
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Buffalo Grove
Illinois
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
7
FINANCIAL SECTION
This section includes:
• Independent Auditors’ Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
• Combining and Individual Fund Statements and Schedules
• Supplemental Schedules
INDEPENDENT AUDITORS’ REPORT
This section includes the opinion of the Village’s independent auditing firm.
INDEPENDENT AUDITORS' REPORT
August 5, 2021
The Honorable Village President
Members of the Board of Trustees
Village of 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, 2020, and the related notes to the financial statements,
which collectively comprise the Village’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the Village’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’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
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Village of Buffalo Grove, Illinois
August 5, 2021
Page 2
Opinions
In our opinion, 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,
2020, 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 management’s
discussion and analysis as listed in the table of contents and budgetary information reported in the required
supplementary information as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Village of Buffalo Grove, Illinois’ basic financial statements. The introductory section, other
supplementary information, supplemental schedules, and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
The other supplementary information and supplemental schedules are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the other supplementary information and supplemental schedules are fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
9
Village of Buffalo Grove, Illinois
August 5, 2021
Page 3
Other Matters – Continued
Other Information – Continued
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 5, 2021,
on our consideration of the Village’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Village’s internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the Village’s internal
control over financial reporting and compliance.
Lauterbach & Amen, LLP
LAUTERBACH & AMEN, LLP
10
MANAGEMENT’S DISCUSSION AND ANAYLSIS
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
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, 2020. This information presented here should be considered in
conjunction with additional information provided in the letter of transmittal, which is found in the introductory section of
this report.
Financial Highlights
• The assets and deferred outflows of the Village exceeded its liabilities and deferred inflows at December 31,
2020 by $74.6 million (net position). The Net Position for governmental activities is $19.2 million or 25.7
percent of the total, and business-type activities account for $55.4 million. Of this amount, ($18.9) million is
unrestricted, the negative amount of unrestricted assets is directly related to the recognition of all retirement
obligations in noncurrent liabilities, which is $59.7 million for 2020 (a decrease of $12.6 million or 17.4% from
2019).
• The Village’s total debt increased by $22.3 million (or 122.5 percent). Total general bonded debt outstanding
is $34.6 million as of December 31, 2020. The General Fund transferred $2.9 million from fund balance to
the Capital Projects Fund.
• The Village’s net position increased by $13.8 million (or 22.7 percent) during the fiscal year ending December
31, 2020. The governmental net position increased by $6.9 million (56.1 percent) and the business-type
activities net position increased by $6.9 million (14.2 percent).
• As of December 31, 2020, the Village of Buffalo Grove’s General Fund reported ending fund balance of $30.5
million, an increase of $2.6 million from the prior year. Of this amount, $20.1 million was unassigned.
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 are designed to provide readers with a broad overview of the Village’s
finances similar to the corporate sector in that all governmental and business-type activities are consolidated into one
total for the Primary Government.
The statement of net position presents information on all 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).
11
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
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, community development, 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 most 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 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 nine 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, Debt Service, Facilities Development, Street Maintenance, and Vehicle Equipment
Replacement Funds, which are classified as major funds. Data on the other four governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided
in the form of combining statements elsewhere in the report.
Proprietary Funds 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 Sewer Fund and the Arboretum Golf Fund as they are considered major funds.
12
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary
funds are reflected in the government-wide financial statement since the implementation of GASB 67 & 68. The
implementation was completed in fiscal year 2015. The accounting used for fiduciary funds is much 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.
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 retiree benefit plans to its employees.
Government-wide Financial Analysis
The assets and deferred outflows of the Village of Buffalo Grove exceeded liabilities and deferred inflows by $74.6
million as of December 31, 2020. The largest portion of the Village’s net position reflects its net investment in capital
assets ($89.5 million). 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.
A portion of the Village’s net position ($4.0 million) represents resources that are subject to external restrictions on how
they may be used, of that amount $3.0 million is restricted for improvements to roadway, public infrastructure, and
other municipal public improvements. The remaining balance of unrestricted net position (($18.9) million) reduces total
net position significantly due to GASB 68 and 75, which requires the Village to show the outstanding retirement
obligations in noncurrent liabilities. The total increase in unrestricted net position from the prior year is $9.9 million
(34.4 percent).
The Village’s combined net position increased by $13.8 million as a result of governmental activities increasing by $6.9
million and business-type activities increasing by $6.9 million. The net position of the Village’s governmental fund was
$19.2 million. The Village’s unrestricted net position for governmental activities that are available for day-to-day
financial operations were ($35.6) million compared to ($40.2) million at December 31, 2019. The net position of
business-type activities was $55.4 million. The business type activities unrestricted net position increased by $5.3
million from the previous year.
13
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
Please refer to table below for condensed Statement of Net Position:
2020 2019 2020 2019 2020 2019
Assets
Current / Other Assets $72.4 51.0 19.3 14.6 91.7 65.6
Capital Assets 71.6 62.5 44.6 43.4 116.2 105.9
Total Assets 144.0 113.5 63.9 58.0 207.9 171.5
Deferred Outflows 12.2 14.1 2.3 1.0 14.5 15.1
Total Assets/Deferred Outflows 156.2 127.6 66.2 59.0 222.4 186.6
Liabilities
Current Liabilities 7.5 6.0 1.4 2.1 8.9 8.1
Non-Current Liabilities 93.9 80.7 8.9 8.2 102.8 88.9
Total Liabilities 101.4 86.7 10.3 10.3 111.7 97.0
Deferred Infows 35.6 28.6 0.5 0.2 36.1 28.8
Total Liabilities/ Deferred Inflows 137.0 115.3 10.8 10.5 147.8 125.8
Net Position:
Net Investment in Capital Assets 50.8 50.7 38.7 37.1 89.5 87.8
Restricted 4.0 1.8 - - 4.0 1.8
Unrestricted (35.6) (40.2) 16.7 11.4 (18.9) (28.8)
Total Net Position 19.2 12.3 55.4 48.5 74.6 60.8
Village of Buffalo Grove's Net Position (in Millions)
Governmental Business-Type
Activities Activities Total
14
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2020
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.
Spending Borrowed Proceeds on New Capital – which will reduce current assets and increase capital assets. There is
a second impact, an increase in invested in capital assets and an increase in related net debt which will not change
the net investment in capital assets.
Reduction of Capital Assets through Depreciation – which will reduce capital assets and net investment in capital
assets.
Current Year Impacts
At the end of the current fiscal year, the Village reported positive balances in all three categories of net position, both
for the government as a whole, as well as for its separate governmental and business-type activities.
Within the governmental activities, the Village increase in “Current and Other Assets” of $21.5 million is primarily related
to $20.9 million more in cash and investments, $0.2 million more in receivables and $0.4 million more in prepaid
reserves related to terminal illness coverage at the end of 2020 compared to 2019. The Village experienced a slight
decrease of $0.2 million (-4.1 percent) in service charge revenues, $0.4 million (-30.8 percent) in telecommunications
taxes, $0.2 million (-7.1 percent) in utility taxes and $2.5 million (-51% percent) in other general revenues. Real estate
(property) transfer taxes stayed consistent to the prior year. Interest Income decreased $0.5 million (-66 percent) and
miscellaneous income decreased $1.5 million (-58 percent).
The Village maintained capital improvement and asset purchases in 2020. 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:
15
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2020
2020 2019 2020 2019 2020 2019
Revenues
Program Revenues
Charges for Services $ 4.7 4.9 18.2 13.8 22.9 18.7
Grants / Contributions
Operating 3.8 1.7 - - 3.8 1.7
Capital 2.0 0.2 0.3 0.3 2.3 0.5
General Revenues
Property Taxes 17.0 16.3 - - 17.0 16.3
Sales and Use Taxes 11.6 11.3 - - 11.6 11.3
Income Taxes 4.6 4.5 - - 4.6 4.5
Telecommunications Taxes 0.9 1.3 - - 0.9 1.3
Utility Taxes 2.6 2.8 - - 2.6 2.8
Property Transfer Taxes 1.0 1.0 - - 1.0 1.0
Other General Revenues 2.5 4.9 0.6 0.8 3.1 5.7
Total Revenues 50.7 48.9 19.1 14.9 69.8 63.8
Expenses
General Government 7.2 7.0 - - 7.2 7.0
Public Safety 26.1 30.2 - - 26.1 30.2
Public Works 7.7 10.2 - - 7.7 10.2
Interest 1.2 0.3 - - 1.2 0.3
Water - - 10.4 9.7 10.4 9.7
Sewer - - 0.8 2.8 0.8 2.8
Golf - - 2.6 0.8 2.6 0.8
Total Expenses 42.2 47.7 13.8 13.3 56.0 61.0
Change in Net Position
Before Transfers 8.5 1.2 5.3 1.6 13.8 2.8
Transfers (1.6) 1.2 1.6 (1.2) - -
Change in Net Position 6.9 2.4 6.9 0.4 13.8 2.8
Net Position - Beginning 12.3 9.9 48.5 48.1 60.8 58.0
Net Position - Ending 19.2 12.3 55.4 48.5 74.6 60.8
Activities Activities Total
Village of Buffalo Grove's Changes in Net Position (in Millions)
Governmental Business-Type
16
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
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 can 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 increased the Village’s net position by $6.8 million to $19.1 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, 2020 were $50.7 million an
increase of $1.8 million or 3.7 percent. Property taxes continue to be the Village’s largest source of revenue (33.5
percent) at $17.0 million. Included within the property tax revenues are the pension levies for the Police and Firefighter
Pension Funds and IMRF/Social Security. The pension levies account for 39.5 percent of the property tax levy. Other
taxes and intergovernmental revenue including sales tax, state income tax, utility tax, prepared food and beverage tax,
hotel tax, and real estate transfer tax total $20.7 million or 40.8 percent of total governmental activities revenue.
Property taxes increased by $0.7 million. There was a 0% increase in the corporate agency tax levy collected in 2020.
The corporate levy for 2020, to be collected in 2021, is funding Police and Fire Protection.
17
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
The Police Protection levy increased $.2 million (4.8 percent) and the Fire Protection Levy decreased $.2 million (3.0
percent). The total tax levy decreased .16 percent due to $.6 million in abatements.
Sales and use tax increased by $0.3 million compared to the previous year primarily due to sales tax (net of rebates)
declining 2.7%. Utility taxes decreased $0.2 million compared to prior year. Income taxes continue to rebound
increasing $0.1 million from FY 2019, a 2.2 percent jump. Real estate transfer taxes stayed consistent with prior year.
Income tax and sales and use tax are key indicators for the Village of Buffalo Grove’s local economy and are improving
year over year.
Expenses:
The cost of all governmental activities this year was $42.2 million, a decrease of 11.5 percent from 2019 ($47.7 million).
The largest decrease was made in Public Safety expenses $4.1 million in 2020. Public Works expenses decreased by
$2.5 million (24.5 percent).
18
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
The Statement of Activities shows that $4.7 million in revenue was generated to finance the services rendered by the
user fees. Another $5.8 million in revenue was generated by operating and capital grants and other contributions that
was expended for capital improvement.
Business-Type Activities:
Business-type activities net position increased by $6.9 million. Significant changes are noted below.
Revenue:
Water sales increased $3.9 million from the previous year. The total amount pumped was 1.24 billion gallons in 2019
versus 1.26 billion in 2020. The utility increased revenue with a 11.0 percent water rate increase. There was a slight
increase in water consumed .05 billion gallons (4.3 percent). The two golf courses generated $2.5 million in 2020, $0.5
million (25 percent) better than 2019 earnings. The following graph shows a comparison of revenues and expenses for
each business type activity (excludes non-operating activity, transfers and GAAP adjustments).
Expenses:
Expenses from all business-type activities increased by $0.5 million or 3.8 percent. The Water Fund expenses
increased by $0.7 million due to more expenses in 2020 related to capital projects that weren’t capitalized at year end.
Golf expenses were increased in 2020 to $2.6 million in total or increase of 225.0 percent.
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.
0.0
5.0
10.0
15.0
20.0
Water Fund Refuse Fund Arboretum Golf Buffalo Grove Golf
Village of Buffalo Grove 2020 Business Type Activities Revenues and Expenses
(In Millions)
Revenues
Expenses
19
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
The Village’s governmental funds for the year ended December 31, 2020 reflect a combined fund balance of $50.7
million on its balance sheet. This represents a $21.1 million dollar increase over the balance posted last year. While
most revenue streams for the Village decreased from 2019, the Village issued $24 million in General Obligation Bonds
in 2020 and experienced an overall increase in revenues of $1.9 million. New revenue streams due to Illinois Rebuild
funds of $.9 million, $.5 million in Motor Fuel Tax Transportation Renewal Distribution funds, and $.4 million in Local
Motor Fuel Tax funds were received in 2020. While the Village curbed expenditures due to Covid-19, the overall
increase over prior year of $8.3 million is due to inflationary costs along with an increase in capital project expenditure
activity of $5.9 million. Of the total fund balance of $50.7 million, $20.2 million is unassigned indicating availability for
future obligations.
The 2020 unassigned fund balance increased by $1.2 million. Nonspendable fund balance ($0.57 million) represents
amounts set aside for inventory and deposits. Restricted fund balance ($20.6 million) relates to the remaining proceeds
available on the 2020 General Obligation Bond, federal and state seizure funds, and non-major special revenue fund
balances including the Motor Fuel Tax and Local Motor Fuel Tax funds. Committed fund balance ($9.3 million) is to be
used 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, community development, and general administration. As such, it useful to review the
liquidity of the fund by comparing the unassigned fund balance against the operating General Fund operating budget.
As of December 31, 2020, the unassigned fund balance represents 47.2 percent of the FY 2020 operating budget. The
Fund Balance of the General Fund increased by $2.6 million for the fiscal year ended December 31, 2020.
General Fund revenues decreased by $0.2 million in 2020. Fines and Fees increased slightly reporting $3.1 million,
while Miscellaneous Income is down $1.6 million (59.3 percent) from 2019. State Sales tax (net of rebates) reported
for 2020 was down 2 percent ($0.1 million). Income tax increased $0.1 million (2.6 percent) and use tax increased
$0.45 million (32.3 percent). Real estate transfer taxes decreased by $35,000 (-3.5 percent). Other State of Illinois
shared revenues decreased $18,000 (-6.24%). It should be noted that these revenues tend to be threatened to be
reduced annually by the state legislature. The Village of Buffalo Grove is focused on developing self-sustaining
revenue sources.
20
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
The overall decrease in the General Fund revenue was 0.4 percent, while expenditures increased 6.7 percent ($2.7
million) in 2020.
The surplus of revenues over expenditures (before other financing sources/uses) was $3.8 million. Adding in the Other
Financing Sources (Uses), the net change to fund balance resulted in an increase of $2.6 million. Public Safety
Expenditures increased $1.3 million, 3.4 percent, in FY 2020. Public Works increased 14.8 percent ($0.9 million) and
General Government spent $0.5 million more in 2020 versus 2019.
Special Revenue Funds have a combined fund balance of $3.0 million as of December 31, 2020. In 2020 the Village
continued its initiative to improve local roadways by resurfacing streets, repairing bridges, and maintaining street, curb
and gutter as needed. These projects were funded through Motor Fuel Tax (MFT) funds, Local Motor Fuel Tax (LMFT)
funds, the Capital Projects Street Maintenance fund, and grant revenues in 2020. Revenues received from the state
share of the motor fuel tax were $2.4 million and local share of motor fuel tax of $0.4 million. The scope of each year’s
identified maintenance, as determined through pavement analysis studies, surpasses the revenues typically received;
however, in 2020, new revenue streams brought in additional funding: Motor Fuel Transportation Renewal Fund
revenues, Local Motor Fuel Tax revenues and Illinois Rebuild grant revenues to help with the relatively inelastic funding
source provided by Motor Fuel Tax allotments. The intention of the 2020 debt issuance was to help fund the Village’s
streets and water and sewer infrastructure modernization program. The Street Maintenance Fund expended $7.5
million which was mostly transferred from the General Fund. Some street projects tied to grant funding are not complete
as of December 31, 2020, the remainder will be expended in FY 2021. 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 $16.8 million at the end of FY 2020, The Village debt totals $34.6 million,
all general obligation bonds, and retired $1.3 million in principal in the current year and issued $24.0 million in general
obligation bonds. The interest paid associated with the debt retired was $1.2 million. Debt per capita is $916.91 as of
December 31, 2020.
The Village’s Capital Improvement plan continued in 2020. The Village expended over $0.5 million to the Facilities
Development fund infrastructure in FY 2020.
21
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
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 that 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 interest and transfers of $4.4 million for FY 2020,
an increase of $3.0 million (26.1 percent) from the prior fiscal year. A rate increase of 11% percent was applied to all
water and sewer usage as well as a new fixed facility fee assessed for single family homes and town homes effective
January 1, 2020. Sewer operations accounted for 35.7 percent, or $4.2 million of the total Water and Sewer operational
expenditures. Water operations accounted for $1.8 million (15.5 percent) and capital outlay for both systems totaling
$3.9 million (33.8 percent). The purchase of water accounted for 14.9 percent, or $1.7 million. Sanitary sewer fees
collected on behalf of Lake County Public Works was $3.3 million for FY 2020. These two pass-through expenses
account for 41.7 percent of the total operating expense of the fund.
Non-operating revenue (expense) decreased $5,782 due to investment income.
The unrestricted net position of the Water and Sewer Fund at the end of the current fiscal year was $15.6 million and
of that amount $8.4 million is the Village’s equity interest in the Northwest Water Commission. The installment note to
pay down the water meter replacement project is $5.6 million, or 65.2 percent, of total liabilities in the water and sewer
enterprise. The note is paid off by the increased margin of water metering accuracy.
The Village of Buffalo Grove owns and operates two municipal golf courses. 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 balance of $0.9 million. Total revenues were up $268,000 from
2019. The Buffalo Grove Golf Course generated $1.2 million in operating revenue while incurring $1.0 million in
operating expenses. A total of 58,297 paid rounds were played between the two courses in 2020.
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 Budget Officer Act, a public hearing, for public comment is
conducted, before the budget is adopted. The budget document sets the legal spending ceiling for each fund and
serves as the day-to-day management tool to ensure fiscal accountability.
22
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
Final
Budget Actual
Revenues and Transfers:
Taxes $36,217 40,221
2,570 3,084
Licenses and permits 240 301
2,005 2,885
2,008 2,008
Total Revenues and Transfers 43,040 48,499
Expenditures and Transfers
44,727 42,670
3,340 3,209
48,067 45,879
Change in fund balance (5,027) 2,620
General Fund Budgetary Highlights
For the Fiscal Year Ended December 31, 2020
(in thousands)
Total expenditures and Transfers
Fines and Fees
Other Revenues
Transfers in
Expenditures
Transfers Out
Revenue (taxes) performed better than expected due to stronger than anticipated sales and income tax revenue. Actual
expenditures performed better than budget due to the reduction in spending efforts as a result of the Covid-19
environment.
Capital Assets
At the end of December 31, 2020, the Village had a combined total capital assets of $116.1 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 $10.1 million.
23
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2020
2020 2019 2020 2019 2020 2019
Land $39.5 38.1 6.2 6.2 45.7 44.3
Construction in Progress 2.3 1.6 1.0 - 3.3 1.6
Buildings 4.4 3.5 0.7 1.0 5.1 4.5
Equipment and Vehicles 7.6 5.4 - 0.2 7.6 5.6
Land Improvements 2.6 2.6 - - 2.6 2.6
Streets and Storm Sewers 15.1 11.4 - -15.1 11.4
Water and Sewer Infrastructure - - 36.7 36.0 36.7 36.0
71.5 62.6 44.6 43.4 116.1 106.0
Village of Buffalo Grove Capital Assets at Year End (in millions)
Governmental Business-Type
Activities Activities Total
2020 2019 2020 2019 2020 2019
General Obligation Bonds $34.6 11.9 - - 34.6 11.9
IEPA Loans - - 0.3 0.3 0.3 0.3
Installment Contracts Payable - - 5.6 6.0 5.6 6.0
34.6 11.9 5.9 6.3 40.5 18.2
The Governmental Activities net capital assets increased from last year by $8.9 million (14.2 percent). For the Business-
type activities, the net capital assets increased by $1.2 million or (2.8 percent).
The capital activity for the Village of Buffalo Grove is mostly in streets, water and sewers and vehicles including the
construction in progress in these areas. The amounts added to the asset classes was offset by accumulated
depreciation and not shown in the table above.
Detailed information on the Village’s capital assets is included in Note 3.
Long-Term Debt
At year end, the Village had total debt outstanding of $40.5 million as shown in the next table:
Village of Buffalo Grove Long-Term Debt (in millions)
Governmental Business-Type
Activities Activities Total
24
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2020
The Village maintains assigned “AAA” ratings on its general obligation bonds from Standard and Poor’s Corporation.
Moody’s Investor Services rates the Village of Buffalo Grove as “AA1”.
The total per capita general obligation (GO) debt for the community stands at $916.91 and represents 0.69 percent of
the percentage of equalized assessed valuation of the Village.
The Village, under its home rule authority, does not have a legal debt limit.
Detailed information on the Village’s long-term debt can be found in Note 3.
Economic Factors and Next Year’s Budgets and Rates
The Village entered 2021 with a balanced operating budget. The budget for the fiscal year beginning January 1, 2021,
is $113,221,559 a 40.1 percent increase from the previous year. The operating budget totals $49,176,622 resulting in
an 8.4 percent increase over the previous year.
Total capital spending during the year is estimated to be $17.4 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. In 2021, the Village begins a five-year capital program to address the community’s
water and sanitary sewer system infrastructure replacement and street resurfacing and reconstructions projects.
The additional funding that increases in water and sewer utility rates as well as the new fixed facility fees bring in are
allocated entirely to capital projects and used to offset debt service exposure in the property tax levy.
Property taxes remain the Village’s most stable revenue although the total assessed value of all taxable property
decreased 1.7 percent for the 2020 tax levy (extended and collected in 2021). A tax levy was adopted for the 2021
budget at the same level as the prior year for an increase of 0.0 percent. The Village mitigated an additional $3.34
million in levied taxes through full abatements of the 2016 and 2020 bonds, as well as a partial abatement of the 2012
bonds. If these amounts were not abated the levy increase would have been 19.6 percent. The Village will use
operating funds to pay the bond payable amount not covered by the tax levy.
A Storm Water Management User Fee introduced in the FY 2016 budget offsets the costs related to maintaining,
repairing and developing an infrastructure reserve for future system needs. This revenue stream has resulted in an
additional $1.1 million to the General Fund that is funding new and replacement storm sewer infrastructure.
Budgeted expenditures include general wage adjustments 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 are minimized by the economies of scale provided by the Village’s membership in the
Intergovernmental Personnel Benefits Cooperative (IPBC). In 2021, plans remain on hold for backfilling vacancies as
a result of the uncertainty in the economic environment due to Covid-19 and its impact.
25
VILLAGE OF BUFFALO GROVE, ILLINOIS Management’s Discussion and Analysis (Unaudited)
December 31, 2020
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 Chris Black, Director of Finance or
Cheryl Mosqueda, Deputy Director of Finance, Village of Buffalo Grove, 50 Raupp Boulevard, Buffalo Grove, IL 60089.
26
• Government-Wide Financial Statements
• Fund Financial Statements
Governmental Funds
Proprietary Funds
Fiduciary Funds
BASIC FINANCIAL STATEMENTS
The basic financial Statements include integrated sets of financial statements as required by the GASB. The
sets of statements include:
In addition, the notes to the financial statements are included to provide information that is essential to a user’s
understanding of the basic financial statements.
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position
December 31, 2020
See Following Page
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position
December 31, 2020
Business-Type
Activities Totals
Current Assets
Cash and Cash Equivalents $47,603,189 8,171,720 55,774,909
Receivables - Net of Allowances 24,351,380 2,648,957 27,000,337
Prepaids/Inventories 571,654 56,245 627,899
Total Current Assets 72,526,223 10,876,922 83,403,145
Noncurrent Assets
Capital Assets
Nondepreciable 41,812,405 7,208,451 49,020,856
Depreciable 113,190,423 92,166,077 205,356,500
Accumulated Depreciation (83,403,082)(54,789,340)(138,192,422)
71,599,746 44,585,188 116,184,934
Other Assets
Investment in Joint Venture - 8,374,590 8,374,590
Total Noncurrent Assets 71,599,746 52,959,778 124,559,524
Total Assets 144,125,969 63,836,700 207,962,669
Derferred Items - ARO - 1,725,500 1,725,500
Deferred Items - IMRF 2,464,270 394,664 2,858,934
Deferred Items - Police Pension 2,986,027 - 2,986,027
Deferred Items - Firefighters' Pension 2,418,583 - 2,418,583
Deferred Items - RBP 4,289,126 252,590 4,541,716
Total Deferred Outflows of Resources 12,158,006 2,372,754 14,530,760
Total Assets and Deferred Outflows of Resources 156,283,975 66,209,454 222,493,429
Governmental
Activities
ASSETS
DEFERRED OUTFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
27
Business-Type
Activities Totals
Current Liabilities
Accounts Payable $3,329,063 899,356 4,228,419
Accrued Payroll 959,295 61,630 1,020,925
Deposits Payable 443,377 31,820 475,197
Other Payables 3,762 - 3,762
Compensated Absences Payable 256,354 23,302 279,656
Current Portion of Long-Term Debt 2,550,445 456,502 3,006,947
Total Current Liabilities 7,542,296 1,472,610 9,014,906
Noncurrent Liabilities
Compensated Absences Payable 1,025,415 93,207 1,118,622
Net Pension Liability - IMRF 5,160,476 826,472 5,986,948
Net Pension Liability - Police Pension 26,620,107 - 26,620,107
Net Pension Liability - Firefighters' Pension 12,274,978 - 12,274,978
Total OPEB Liability - RBP 13,996,788 824,282 14,821,070
General Obligation Bonds Payable - Net 34,800,320 - 34,800,320
IEPA Loan Payable - 272,708 272,708
Installment Note Payable - 5,178,045 5,178,045
Asset Retirement Obligation - 1,725,500 1,725,500
Total Noncurrent Liabilities 93,878,084 8,920,214 102,798,298
Total Liabilities 101,420,380 10,392,824 111,813,204
Property Taxes 17,115,541 - 17,115,541
Deferred Items - IMRF 2,785,602 446,126 3,231,728
Deferred Items - Police Pension 7,406,191 - 7,406,191
Deferred Items - Firefighters' Pension 7,769,688 - 7,769,688
Deferred Items - RBP 505,884 29,791 535,675
Total Deferred Inflows of Resources 35,582,906 475,917 36,058,823
Total Liabilities and Deferred Inflows of Resources 137,003,286 10,868,741 147,872,027
Net Investment in Capital Assets 50,847,075 38,677,933 89,525,008
Restricted - Public Safety 760,160 - 760,160
Restricted - Motor Fuel Tax 2,971,226 - 2,971,226
Restricted - Metra Parking Lot 42,070 - 42,070
Restricted - Debt Service 231,373 - 231,373
Unrestricted (Deficit)(35,571,215)16,662,780 (18,908,435)
Total Net Position 19,280,689 55,340,713 74,621,402
NET POSITION
LIABILITIES
Activities
Governmental
DEFERRED INFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
28
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Activities
For the Fiscal Year Ended December 31, 2020
Charges Operating Capital
for Grants/Grants/
Services Contributions Contributions
Governmental Activities
General Government $7,164,852 1,658,024 - -
Public Safety 26,110,362 1,675,331 2,474,586 -
Public Works 7,760,350 1,409,408 1,307,198 2,002,648
Interest on Long-Term Debt 1,206,369 - - -
Total Governmental Activities 42,241,933 4,742,763 3,781,784 2,002,648
Business-Type Activities
Water and Sewerage 10,375,028 14,589,445 - 341,254
Arboretum Golf 1,585,158 1,293,423 - -
Buffalo Grove Golf 1,079,557 1,176,219 - -
Refuse Service 803,999 1,148,303 - -
Total Business-Type Activities 13,843,742 18,207,390 - 341,254
Total Primary Government 56,085,675 22,950,153 3,781,784 2,343,902
General Revenues
Taxes
Property
Home Rule Sales Tax
Telecommunications Tax
Utiltiy Tax
Property Transfer Tax
Other Taxes
Intergovernmental - Unrestricted
State Income Tax
Sales Tax
Local Use Tax
Replacement Tax
Other Taxes
Interest
Miscellaneous
Transfers - Internal Activity
Change in Net Position
Net Position - Beginning
Net Position - Ending
Expenses
Program Revenues
The notes to the financial statements are an integral part of this statement.
29
Governmental Business-Type
Activities Activities Totals
(5,506,828)- (5,506,828)
(21,960,445)- (21,960,445)
(3,041,096)- (3,041,096)
(1,206,369)- (1,206,369)
(31,714,738)- (31,714,738)
- 4,555,671 4,555,671
- (291,735)(291,735)
- 96,662 96,662
- 344,304 344,304
- 4,704,902 4,704,902
(31,714,738)4,704,902 (27,009,836)
17,035,362 - 17,035,362
3,690,631 - 3,690,631
906,071 - 906,071
2,643,697 - 2,643,697
989,118 - 989,118
740,646 - 740,646
4,569,557 - 4,569,557
6,139,134 - 6,139,134
1,852,931 - 1,852,931
24,812 - 24,812
221,639 - 221,639
305,366 472,703 778,069
1,176,737 36,204 1,212,941
(1,629,358)1,629,358 -
38,666,343 2,138,265 40,804,608
6,951,605 6,843,167 13,794,772
12,329,084 48,497,546 60,826,630
19,280,689 55,340,713 74,621,402
Net (Expenses)/Revenues
Primary Government
The notes to the financial statements are an integral part of this statement.
30
VILLAGE OF BUFFALO GROVE, ILLINOIS
Balance Sheet - Governmental Funds
December 31, 2020
Cash and Investments $26,910,646
Receivables - Net of Allowances
Taxes 21,608,148
Other 1,719,155
Due from Other Funds 151,403
Inventories 113,850
Prepaids 457,804
Total Assets 50,961,006
Accounts Payable 2,273,835
Accrued Payroll 917,409
Deposits Payable 443,377
Due to Other Governments 3,762
Due to Other Funds 91,251
Total Liabilities 3,729,634
Property Taxes 16,712,894
Total Liabilities and Deferred Inflows
of Resources 20,442,528
Nonspendable 571,654
Restricted 760,160
Committed 9,052,502
Unassigned 20,134,162
Total Fund Balances 30,518,478
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 50,961,006
FUND BALANCES
General
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
31
Vehicle
Debt Facilities Street Equipment
Service Development Maintenance Replacement Nonmajor Totals
16,812,407 74,501 280,021 50,495 2,950,079 47,078,149
402,647 - - - - 22,010,795
17,060 - 466,618 - 137,752 2,340,585
- - - - - 151,403
- - - - - 113,850
- - - - - 457,804
17,232,114 74,501 746,639 50,495 3,087,831 72,152,586
- 33,194 504,888 32,750 7,761 2,852,428
- - - - - 917,409
- - - - - 443,377
- - - - - 3,762
- - - - 66,774 158,025
- 33,194 504,888 32,750 74,535 4,375,001
402,647 - - - - 17,115,541
402,647 33,194 504,888 32,750 74,535 21,490,542
- - - - - 571,654
16,829,467 - - - 3,013,296 20,602,923
- 41,307 241,751 17,745 - 9,353,305
- - - - - 20,134,162
16,829,467 41,307 241,751 17,745 3,013,296 50,662,044
17,232,114 74,501 746,639 50,495 3,087,831 72,152,586
Capital Projects
The notes to the financial statements are an integral part of this statement.
32
VILLAGE OF BUFFALO GROVE, ILLINOIS
Reconciliation of Total Governmental Fund Balance to
Net Position - Governmental Activities
December 31, 2020
Total Governmental Fund Balances $50,662,044
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial
resources and therefore, are not reported in the funds.71,599,746
Deferred outflows (inflows) of resources related to the pensions not
reported in the funds.
Deferred Items - IMRF (321,332)
Deferred Items - Police Pension (4,420,164)
Deferred Items - Firefighters' Pension (5,351,105)
Deferred Items - RBP 3,783,242
Internal service funds are used by the Village to charge the costs of vehicle and
equipment management and employee compensated absences to individual funds.
The assets and liabilities of the internal service funds are included in
the governmental activities in the Statement of Net Position 13,141
Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds.
Compensated Absences Payable (1,281,769)
Net Pension Liability - IMRF (5,160,476)
Net Pension Liability - Police Pension (26,620,107)
Net Pension Liability - Firefighters' Pension (12,274,978)
Total OPEB Liability - RBP (13,996,788)
General Obligation Bonds Payable - Net (37,350,765)
Net Position of Governmental Activities 19,280,689
The notes to the financial statements are an integral part of this statement.
33
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended December 31, 2020
See Following Page
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended December 31, 2020
Revenues
Taxes $25,114,736
Intergovernmental 15,107,505
Charges for Services 1,478,955
Licenses and Permits 301,321
Fines and Forfeitures 3,084,739
Interest 278,176
Miscellaneous 1,126,929
Total Revenues 46,492,361
Expenditures
Current
General Government 6,582,800
Public Safety 28,891,545
Public Works 6,973,359
Capital Outlay 222,871
Debt Service
Principal Retirement -
Interest and Fiscal Charges -
Total Expenditures 42,670,575
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,821,786
Other Financing Sources (Uses)
Debt Issuance -
Premium on Debt Issuance -
Transfers In 2,008,315
Transfers Out (3,209,874)
(1,201,559)
Net Change in Fund Balances 2,620,227
Fund Balances - Beginning 27,898,251
Fund Balances - Ending 30,518,478
General
The notes to the financial statements are an integral part of this statement.
34
Vehicle
Debt Facilities Street Equipment
Service Development Maintenance Replacement Nonmajor Totals
890,789 - - - - 26,005,525
- - 466,618 - 2,843,228 18,417,351
- - - - 302 1,479,257
- - - - - 301,321
- - - - 52,600 3,137,339
27,190 - - - - 305,366
- - 49,808 - - 1,176,737
917,979 - 516,426 - 2,896,130 50,822,896
- - - - 251,243 6,834,043
- - - - - 28,891,545
- - - - - 6,973,359
- 511,270 7,505,067 1,332,255 - 9,571,463
1,299,030 - - - - 1,299,030
1,196,044 - - - - 1,196,044
2,495,074 511,270 7,505,067 1,332,255 251,243 54,765,484
(1,577,095)(511,270)(6,988,641)(1,332,255)2,644,887 (3,942,588)
24,000,000 - - - - 24,000,000
2,720,164 - - - - 2,720,164
1,262,650 550,000 6,971,962 1,350,000 202,959 12,345,886
(9,577,055)- - - (1,188,315)(13,975,244)
18,405,759 550,000 6,971,962 1,350,000 (985,356)25,090,806
16,828,664 38,730 (16,679)17,745 1,659,531 21,148,218
803 2,577 258,430 - 1,353,765 29,513,826
16,829,467 41,307 241,751 17,745 3,013,296 50,662,044
Capital Projects
The notes to the financial statements are an integral part of this statement.
35
VILLAGE OF BUFFALO GROVE, ILLINOIS
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities - Governmental Activities
For the Fiscal Year Ended December 31, 2020
Net Change in Fund Balances - Total Governmental Funds $21,148,218
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 Activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital Outlays 11,016,201
Depreciation Expense (1,999,753)
Disposals - Cost (164,403)
Disposals - Accumulated Depreciation 164,403
The net effect of deferred outflows (inflows) of resources related
to the pensions not reported in the funds.
Change in Deferred Items - IMRF (4,795,287)
Change in Deferred Items - Police Pension (1,987,284)
Change in Deferred Items - Firefighters'' Pension (4,644,852)
Change in Deferred Items - RBP 2,533,429
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal on long-term
debt consumes the current financial resources of the governmental funds.
Change in Compensated Absences Payable 600,147
Change in Net Pension Liability - IMRF 4,740,251
Change in Net Pension Liability - Police Pension 2,965,123
Change in Net Pension Liability - Firefighters' Pension 6,045,715
Change in Total OPEB Liability - RBP (3,238,844)
Retirement of Debt 1,299,030
Issuance of Debt (24,000,000)
Premium on Issuance of Debt (2,720,164)
Amortization of Bond Premium 6,396
Amortization of Loss on Refunding (16,721)
Internal service funds are used by the Village to charge the costs of vehicle and equipment
management and employee compensated absences to individual funds.
The net revenue of certain activities of internal service funds is
reported with governmental activities.-
Changes in Net Position of Governmental Activities 6,951,605
The notes to the financial statements are an integral part of this statement.
36
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position - Proprietary Funds
December 31, 2020
See Following Page
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position - Proprietary Funds
December 31, 2020
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
Current Assets
Cash and Investments $6,755,186 1,035,868 380,666 8,171,720 525,040
Receivables - Net of Allowances
Accounts 2,158,538 - - 2,158,538 -
Other 490,419 - - 490,419 -
Inventories - 29,837 26,408 56,245 -
Total Current Assets 9,404,143 1,065,705 407,074 10,876,922 525,040
Noncurrent Assets
Capital Assets
Nondepreciable 1,009,937 5,219,738 978,776 7,208,451 -
Depreciable 78,939,022 9,990,847 3,236,208 92,166,077 -
Accumulated Depreciation (42,240,188)(9,980,222)(2,568,930)(54,789,340)-
37,708,771 5,230,363 1,646,054 44,585,188 -
Other Assets
Investment in Joint Venture 8,374,590 - - 8,374,590 -
Total Noncurrent Assets 46,083,361 5,230,363 1,646,054 52,959,778 -
Total Assets 55,487,504 6,296,068 2,053,128 63,836,700 525,040
1,725,500 - - 1,725,500 -
Deferred Items - IMRF 306,282 62,781 25,601 394,664 -
Deferred Items - RBP 223,997 - 28,593 252,590 -
Total Deferred Outflows of Resources 2,255,779 62,781 54,194 2,372,754 -
Total Assets and Deferred
Outflows of Resources 57,743,283 6,358,849 2,107,322 66,209,454 525,040
DEFERRED OUTFLOWS OF
RESOURCES
Business-Type Activities - Enterprise
ASSETS
Water and
Sewerage
Deferred Items - ARO
The notes to the financial statements are an integral part of this statement.
37
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
Current Liabilities
Accounts Payable $846,988 21,125 31,243 899,356 470,013
Accrued Payroll 52,284 3,035 6,311 61,630 41,886
Deposits Payable 25,075 - 6,745 31,820 -
Compensated Absences Payable 14,450 - 8,852 23,302 -
IEPA Loan Payable 19,532 - - 19,532 -
Installment Note Payable 436,970 - - 436,970 -
Total Current Liabilities 1,395,299 24,160 53,151 1,472,610 511,899
Noncurrent Liabilities
Compensated Absences Payable 57,798 - 35,409 93,207 -
Net Pension Liability - IMRF 641,390 131,471 53,611 826,472 -
Total OPEB Liability - RBP 730,975 - 93,307 824,282 -
IEPA Loan Payable 272,708 - - 272,708 -
Installment Note Payable 5,178,045 - - 5,178,045 -
Asset Retirement Obligation 1,725,500 - - 1,725,500 -
Total Noncurrent Liabilities 8,606,416 131,471 182,327 8,920,214 -
Total Liabilities 10,001,715 155,631 235,478 10,392,824 511,899
Deferred Items - IMRF 346,220 70,967 28,939 446,126 -
Deferred Items - RBP 26,419 - 3,372 29,791 -
Total Deferred Inflows of Resources 372,639 70,967 32,311 475,917 -
Total Liabilities and Deferred
Inflows of Resources 10,374,354 226,598 267,789 10,868,741 511,899
Net Investment in Capital Assets 31,801,516 5,230,363 1,646,054 38,677,933 -
Unrestricted 15,567,413 901,888 193,479 16,662,780 13,141
Total Net Position 47,368,929 6,132,251 1,839,533 55,340,713 13,141
Total Liabilities, Deferred Inflows of
Resources, and Net Position 57,743,283 6,358,849 2,107,322 66,209,454 525,040
DEFERRED INFLOWS OF
RESOURCES
LIABILITIES
NET POSITION
Business-Type Activities - Enterprise
Water and
Sewerage
The notes to the financial statements are an integral part of this statement.
38
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds
For the Fiscal Year Ended December 31, 2020
Operating Revenues
Charges for Services $14,589,445
Interfund Services -
Miscellaneous 36,204
Total Operating Revenues 14,625,649
Operating Expenses
Operations 7,796,963
Capital Outlay 858,468
Depreciation 1,574,640
Total Operating Expenses 10,230,071
Operating Income (Loss)4,395,578
Nonoperating Revenues (Expenses)
Interest Income 472,703
Interest Expense (144,957)
327,746
Income (Loss) Before Contributions and Transfers 4,723,324
Capital Contributions 341,254
Transfers In 3,553,408
Transfers Out (1,549,050)
2,345,612
Change in Net Position 7,068,936
Net Position - Beginning 40,299,993
Net Position - Ending 47,368,929
Sewerage
Water and
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
39
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
1,293,423 2,324,522 18,207,390 -
- - - 5,750,319
- - 36,204 -
1,293,423 2,324,522 18,243,594 5,750,319
1,303,957 1,810,840 10,911,760 5,750,319
- - 858,468 -
281,201 72,716 1,928,557 -
1,585,158 1,883,556 13,698,785 5,750,319
(291,735)440,966 4,544,809 -
- - 472,703 -
- - (144,957)-
- - 327,746 -
(291,735)440,966 4,872,555 -
- - 341,254 -
- - 3,553,408 -
- (375,000)(1,924,050)-
- (375,000)1,970,612 -
(291,735)65,966 6,843,167 -
6,423,986 1,773,567 48,497,546 13,141
6,132,251 1,839,533 55,340,713 13,141
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
40
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended December 31, 2020
Cash Flows from Operating Activities
Receipts from Customers and Users $13,894,832
Interfund Services Provided -
Payments to Suppliers (8,329,991)
Payments to Employees (962,349)
4,602,492
Cash Flows from Capital and Related
Financing Activities
Purchase of Capital Assets (2,779,154)
Principal Retirement (405,894)
Interest Expense (144,957)
(3,330,005)
Cash Flows from Noncapital Financing Activities
Transfers In 3,553,408
Transfers Out (1,549,050)
2,004,358
Cash Flows from Investing Activities
Interest Income 472,703
Net Change in Cash and Cash Equivalents 3,749,548
Cash and Cash Equivalents - Beginning 3,005,638
Cash and Cash Equivalents - Ending 6,755,186
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities
Operating Income 4,395,578
Adjustments to Reconcile Operating Income to Net Cash Provided by
(Used in) Operating Activities:
Depreciation and Amortization Expense 1,574,640
Other Income (Expense)67,418
(Increase) Decrease in Current Assets (798,235)
Increase (Decrease) in Current Liabilities (636,909)
Net Cash Provided by Operating Activities 4,602,492
Noncash Activity
Capital Contributions 341,254
Sewerage
Water and
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
41
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
1,383,482 2,317,076 17,595,390 -
- - - 5,750,319
(1,126,797)(282,270)(9,739,058)(4,636,631)
(155,531)(1,629,861)(2,747,741)(1,003,613)
101,154 404,945 5,108,591 110,075
- - (2,779,154)-
- - (405,894)-
- - (144,957)-
- - (3,330,005)-
- - 3,553,408 -
- (375,000)(1,924,050)-
- (375,000)1,629,358 -
- - 472,703 -
101,154 29,945 3,880,647 110,075
934,714 350,721 4,291,073 414,965
1,035,868 380,666 8,171,720 525,040
(291,735)440,966 4,544,809 -
281,201 72,716 1,928,557 -
83,933 99,265 250,616 -
6,126 (7,446)(799,555)-
21,629 (200,556)(815,836)110,075
101,154 404,945 5,108,591 110,075
- - 341,254 -
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
42
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Fiduciary Net Position
December 31, 2020
Cash and Cash Equivalents $6,772,978
Investments
U.S. Treasury Obligations 7,556,203
U.S. Agency Obligations 21,659,500
Corporate Bonds 17,629,079
State and Local Obligations 2,728,349
Mutual Funds 59,402,083
Equity Securities 45,689,083
Receivables - Net of Allowance
Accrued Interest 246,279
Due from Other Funds 91,251
Total Assets 161,774,805
Accounts Payable 73,006
Due to Other Funds 84,629
Total Liabilities 157,635
Net Position Restricted for Pensions 161,617,170
NET POSITION
Trust
Pension
ASSETS
LIABILITIES
The notes to the financial statements are an integral part of this statement.
43
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended December 31, 2020
Additions
Contributions - Employer $5,114,898
Contributions - Plan Members 1,356,057
Total Contributions 6,470,955
Investment Earnings
Interest Earned 3,191,911
Net Change in Fair Value 16,016,643
19,208,554
Less Investment Expenses (281,177)
Net Investment Income 18,927,377
Total Additions 25,398,332
Deductions
Administration 130,762
Benefits and Refunds 8,501,229
Total Deductions 8,631,991
Change in Fiduciary Net Position 16,766,341
Net Position Restricted for Pensions
Beginning 144,850,829
Ending 161,617,170
Pension
Trust
The notes to the financial statements are an integral part of this statement.
44
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Village of Buffalo Grove, Illinois (the Village) incorporated in 1958, 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 public safety (police
and fire protection), sanitation (water and sewer), building and zoning, engineering, recreation, civil
defense and overall administration.
The government-wide financial statements are prepared in accordance with generally accepted
accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible
for establishing GAAP for state and local governments through its pronouncements (Statements and
Interpretations). The more significant of the Village’s accounting policies established in GAAP and
used by the Village are described below.
REPORTING ENTITY
The Village’s financial reporting entity comprises the following:
Primary Government: Village of Buffalo Grove
In determining the financial reporting entity, the Village complies with the provisions of GASB
Statement No. 61, “The Financial Reporting Omnibus – an Amendment of GASB Statements No. 14
and No. 34,” and includes all component units that have a significant operational or financial
relationship with the Village. Based upon the criteria set forth in the GASB Statement No. 61, there are
no component units included in the reporting entity.
Police Pension Employees Retirement System
The Village’s sworn police employees participate in the Police Pension Employees Retirement System
(PPERS). 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 elected pension beneficiary and
two elected police employees constitute the pension board. The participants are required to contribute a
percentage of salary as established by state statute and the Village is obligated to fund all remaining
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 is legally separate from the Village, the PPERS is reported as if it were
part of the primary government because its sole purpose is to provide retirement benefits for the
Village’s police employees. The PPERS is reported as a fiduciary fund, and specifically a pension trust
fund, due to the fiduciary responsibility exercised over the PPERS.
45
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
REPORTING ENTITY – Continued
Firefighters’ Pension Employees Retirement System
The Village’s sworn firefighters participate in the Firefighters’ Pension Employees Retirement System
(FPERS). FPERS functions for the benefit of those employees and is governed by a five-member
pension board, with two members appointed by the Village President, two elected from active
participants of the Fund, and one elected from the retired members of the Fund. The participants are
required to contribute a percentage of salary as established by state statute and the Village is obligated
to fund all remaining 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 is legally separate from the Village, the FPERS is
reported as if it were part of the primary government because its sole purpose is to provide retirement
benefits for the Village’s sworn firefighters. The FPERS is reported as a fiduciary fund, and specifically
a pension trust fund, due to the fiduciary responsibility exercised over the FPERS.
BASIS OF PRESENTATION
Government-Wide Statements
The Village’s basic financial statements include both government-wide (reporting the Village as a
whole) and fund financial statements (reporting the Village’s major funds). Both the government-wide
and fund financial statements categorize primary activities as either governmental or business type. The
Village’s police and fire safety, public works, and general administrative services are classified as
governmental activities. The Village’s water and sewerage, Arboretum golf, Buffalo Grove golf,
and refuse services are classified as business-type activities.
In the government-wide Statement of Net Position, both the governmental and business-type activities
columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual,
economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as
well as long-term debt/deferred inflows and obligations. The Village’s net position is reported in three
parts: net investment in capital assets; restricted; and unrestricted. The Village first utilizes restricted
resources to finance qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of each of the
Village’s functions and business-type activities (general government, police and fire safety, public
works, etc.). The functions are supported by general government revenues (property, sales and use
taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities
reduces gross expenses (including depreciation) by related program revenues, which include 1) charges
to customers or applicants who purchase, use, or directly benefit from foods, 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.
46
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
BASIS OF PRESENTATION – Continued
Government-Wide Statements – Continued
The net costs (by function or business-type activity) are normally covered by general revenue (property
tax, sales tax, intergovernmental revenues, interest income, etc.).
The Village does not allocate indirect costs. An administrative service fee is charged by the General
Fund to the other operating funds that is eliminated like a reimbursement (reducing the revenue and
expense in the General Fund) to recover the direct costs of General Fund services provided (finance,
personnel, purchasing, legal, technology management, etc.).
This government-wide focus is more on the sustainability of the Village as an entity and the change in
the Village’s net position resulting from the current year’s activities.
Fund Financial Statements
The financial transactions of the Village are reported in individual funds in the fund financial
statements. Each fund is accounted for by providing a separate set of self-balancing accounts that
comprises its assets/deferred outflows, liabilities/deferred inflows, fund equity, revenues and
expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and
fiduciary. The emphasis in fund financial statements is on the major funds in either the governmental or
business-type activities categories.
GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows,
liabilities/deferred inflows, revenues or expenditures/expenses of either fund category or the
governmental and enterprise combined) for the determination of major funds. The Village electively
added funds, as major funds, which either have debt outstanding or a specific or community focus. The
nonmajor funds are combined in a column in the fund financial statements. A fund is considered major
if it is the primary operating fund of the Village or meets the following criteria:
Total assets/deferred outflows, liabilities/deferred inflows, revenues, or
expenditures/expenses of that individual governmental or enterprise fund
are at least 10 percent of the corresponding total for all funds of that
category or type; and
Total assets/deferred outflows, liabilities/deferred inflows, revenues, or
expenditures/expenses of the individual governmental fund or enterprise
fund are at least 5 percent of the corresponding total for all governmental
and enterprise funds combined.
47
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
BASIS OF PRESENTATION – Continued
Fund Financial Statements – Continued
The various funds are reported by generic classification within the financial statements. The following
fund types are used by the Village:
Governmental Funds
The focus of the governmental funds’ measurement (in the fund statements) is upon determination of
financial position and changes in financial position (sources, uses, and balances of financial resources)
rather than upon net income. The following is a description of the governmental funds of the Village:
General Fund is the general operating fund of the Village. It is used to account for all financial
resources except those required to be accounted for in another fund. The General Fund is a major fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specified purposes. The Village maintains four nonmajor special revenue
funds.
Debt Service Funds are used to account for the accumulation of funds for the periodic payment of
principal and interest on general long-term debt. The Debt Service Fund is treated as a major fund.
Capital Projects Funds are used to account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by business-type/proprietary funds).
The Facilities Development Fund, a major fund, is used to account for and reports financial resources
that are restricted, committed or assigned to expenditures for acquisition, construction, improvement,
repair, and replacement of the Village’s capital facilities. The Street Maintenance Fund, also a major
fund, is used to account for and reports financial resources that are restricted, committed or assigned to
expenditures for acquisition, construction, improvement, repair, and replacement of the Village’s
roadways. The Vehicle Equipment Replacement Fund, also a major fund, is used to account for and
reports financial resources that are restricted, committed or assigned to expenditures for the acquisition,
construction, improvement, repair, and replacement of the Village's vehicles and equipment.
Proprietary Funds
The focus of proprietary fund measurement is upon determination of operating income, changes in net
position, financial position, and cash flows. The generally accepted accounting principles applicable are
those similar to businesses in the private sector. The following is a description of the proprietary funds
of the Village:
48
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
BASIS OF PRESENTATION – Continued
Fund Financial Statements – Continued
Proprietary Funds – Continued
Enterprise Funds are required to account for operations for which a fee is charged to external users for
goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net
revenues, (b) has third party requirements that the cost of providing services, including capital costs, be
recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designed
to recover similar costs. The Village maintains four enterprise funds. The Water and Sewerage Fund, a
major fund, is used to account for the revenue and expenses related to the operation of the water and
sewerage system. The Arboretum Golf Fund, also a major fund, is used to account for the revenues and
expenses related to the operation of the golf course.
Internal Service Funds are used to account for the financing of goods or services provided by an
activity to other departments, funds or component units of the Village on a cost-reimbursement basis.
The Village maintains three internal services funds. The Information Technology Fund is used to
account for all costs associated with providing technology services to all departments for the operation
of the Village. The Central Garage Fund is used to account for the activity necessary to operate and
maintain the Village’s automotive fleet. User departments are charged a proportionate share determined
by the number and types of vehicles in each department. The Building Maintenance Fund is used to
account for providing a clean, healthy, and safe working environment in Village facilities, meeting
areas and public areas.
The Village’s internal service funds are presented in the proprietary fund financial statements. Because
the principal users of the internal services are the Village’s governmental activities, the financial
statements of the internal service funds are consolidated into the governmental column when presented
in the government-wide financial statements. To the extent possible, the cost of these services is
reported in the appropriate functional activity (general government, police and fire safety, public works,
etc.).
49
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
BASIS OF PRESENTATION – Continued
Fund Financial Statements – Continued
Fiduciary Funds
Fiduciary funds are used to report assets held in a trustee or custodial capacity for others and therefore
are not available to support Village programs. The reporting focus is on net position and changes in net
position and is reported using accounting principles similar to proprietary funds.
Pension Trust Funds are used to account for assets held in a trustee capacity for pension benefit
payments. The Police Pension Fund accounts for the accumulation of resources to pay retirement and
other related benefits for sworn members of the Village’s police force. The Firefighters’ Pension Fund
accounts for the accumulation of resources to pay retirement and other related benefits for sworn
members of the Village’s Fire Department.
The Village’s pension trust funds are presented in the fiduciary fund financial statements. Since by
definition these assets are being held for the benefit of a third party (pension participants) and cannot be
used to address activities or obligations of the Village, these funds are not incorporated into the
government-wide statements.
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus is a term used to describe “which” transactions are recorded within the various
financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the
measurement focus applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both governmental
and business-type activities are presented using the economic resources measurement focus as defined
below.
In the fund financial statements, the “current financial resources” measurement focus or the “economic
resources” measurement focus is used as appropriate.
50
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued
Measurement Focus – Continued
All governmental funds utilize a “current financial resources” measurement focus. Only current
financial assets/deferred outflows and liabilities/deferred inflows are generally included on their
balance sheets. Their operating statements present sources and uses of available spendable financial
resources during a given period. These funds use fund balance as their measure of available spendable
financial resources at the end of the period.
All proprietary and pension trust funds utilize an “economic resources” measurement focus. The
accounting objectives of this measurement focus are the determination of operating income, changes in
net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows and
liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported.
Proprietary and pension trust fund equity is classified as net position.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and
business-type activities are presented using the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred
inflow is incurred or economic asset used. Revenues, expenses, gains, losses, assets/deferred outflows,
and liabilities/deferred inflows resulting from exchange and exchange-like transactions are recognized
when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of
accounting. Under this modified accrual basis of accounting, revenues are recognized when
“measurable and available.” Measurable means knowing or being able to reasonably estimate the
amount. Available means collectible within the current period or within sixty days after year-end. The
Village recognizes property taxes when they become both measurable and available in accordance with
GASB Codification Section P70. A sixty-day availability period is used for revenue recognition for all
other governmental fund revenues. Expenditures (including capital outlay) are recorded when the
related fund liability is incurred, except for general obligation bond principal and interest which are
recognized when due.
In applying the susceptible to accrual concept under the modified accrual basis, those revenues
susceptible to accrual are property taxes, sales and use taxes, franchise taxes, licenses, interest revenue,
and charges for services. All other revenues are not susceptible to accrual because generally they are
not measurable until received in cash.
51
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued
Basis of Accounting – Continued
All proprietary and pension trust funds utilize 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.
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 Village’s enterprise funds and of the Village’s internal service funds are charges to customers for
sales and services. The Village also recognizes as operating revenue the portion of tap fees intended to
recover the cost of connecting new customers to the system. Operating expenses for enterprise funds
and internal service 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.
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET
POSITION OR EQUITY
Cash and Investments
For the purpose of the Statement of Net Position, cash and cash equivalents are considered to be cash
on hand, demand deposits, and cash with fiscal agent. For the purpose of the proprietary funds
“Statement of Cash Flows,” cash and cash equivalents are considered to be cash on hand, demand
deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three
months or less.
Investments are generally reported at fair value. Short-term investments are reported at cost, which
approximates fair value. For investments, 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.
Receivables
In the government-wide financial statements, receivables consist of all revenues earned at year-end and
not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and
the periodic aging of accounts receivable. Major receivables balances for governmental activities
include property taxes, sales and use taxes, franchise taxes, and grants. Business-type activities report
charges for services as their major receivables.
52
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET
POSITION OR EQUITY – Continued
Interfund Receivables, Payables and Activity
Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are
reported as interfund receivables and payables as appropriate and are subject to elimination upon
consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues
and expenditures/expenses. Internal service fund services provided and used are not eliminated in the
process of consolidation. Reimbursements are when one fund incurs a cost, charges the appropriate
benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are
treated as transfers. Transfers between governmental or proprietary funds are netted as part of the
reconciliation to the government-wide financial statements.
Prepaids/Inventories
Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO)
method. Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaids in both the government-wide and fund financial statements. The costs of
governmental fund-type prepaids/inventories are recorded as expenditures when consumed rather than
when purchased.
Capital Assets
Capital assets purchased or acquired with an original cost of $10,000 or more (depending on asset class)
are reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition
value as of the date received. Additions, improvements and other capital outlays that significantly
extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are
expensed as incurred.
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. General capital assets are long-lived assets of the Village as a whole. When purchased, such
assets are recorded as expenditures in the governmental funds and capitalized. Infrastructure such as
streets, traffic signals and signs are capitalized. The valuation basis for general capital assets are
historical cost, or where historical cost is not available, estimated historical cost based on replacement
costs.
Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The
valuation bases for proprietary fund capital assets are the same as those used for the general capital
assets. Donated capital assets are recorded at acquisition value on the date donated.
53
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET
POSITION OR EQUITY – Continued
Capital Assets – Continued
Depreciation on all assets is computed and recorded using the straight-line method of depreciation over
the following estimated useful lives:
Buildings 20 Years
Equipment and Vehicles 2 – 10 Years
Land Improvements 5 – 50 Years
Streets 5 – 50 Years
Storm Sewers 5 – 50 Years
Infrastructure 5 – 50 Years
Deferred Outflows/Inflows of Resources
Deferred outflow/inflow of resources represents an acquisition/reduction of net position that applies to a
future period and therefore will not be recognized as an outflow of resources (expense)/inflow of
resources (revenue) until that future time.
Compensated Absences
The Village accrues accumulated unpaid vacation and associated employee-related costs when earned
(or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is
recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is
recognized for that portion of accumulated sick leave that is estimated to be taken as “terminal leave”
prior to retirement.
All vacation pay is accrued when incurred in the government-wide and proprietary fund financial
statements. A liability for these amounts is reported in the governmental funds only if they have
matured, for example, as a result of employee resignations and retirements.
54
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET
POSITION OR EQUITY – Continued
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type Statement of Net Position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective
interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond
issuance costs are reported as expenses at the time of issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
Net Position
In the government-wide financial statements, equity is classified as net position and displayed in three
components:
Net Investment in Capital Assets – Consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by
the outstanding balances of any bonds, mortgages, notes or other
borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
Restricted – Consists of net position with constraints placed on the 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 legislations.
Unrestricted – All other net position balances that do not meet the
definition of “restricted” or “net investment in capital assets.”
55
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
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 the 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 re-appropriated 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.
56
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
EXCESS OF ACTUAL EXPENDITURES/EXPENSES OVER BUDGET IN INDIVIDUAL
FUND
The following funds had an excess of actual expenditures/expenses, exclusive of depreciation, over
budget as of the date of this report:
Fund
Arboretum Golf $ 24,127
Police Pension 292,047
Firefighters' Pension 637,086
Excess
NOTE 3 – DETAIL NOTES ON ALL FUNDS
DEPOSITS AND INVESTMENTS
The Village maintains a cash and investment pool that is available for use by all funds except the
pension trust funds. Each fund type's portion of this pool is displayed on the financial statements as
"cash and investments." In addition, investments are separately held by several of the Village’s funds.
The deposits and investments of the pension trust funds are held separately from those of other funds.
Permitted Deposits and Investments – Statutes authorize the Village to make deposits/invest in
commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies,
obligations of States and their political subdivisions, credit union shares, repurchase agreements,
commercial paper rated within the three highest classifications by at least two standard rating services,
Illinois Funds, the Illinois Metropolitan Investment Fund and the Illinois Public Reserves Investment
Management Trust.
The Illinois Funds is an investment pool managed by the Illinois Public Treasurer’s Office 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. Investments in Illinois Funds are valued at the share
price, the price for which the investment could be sold.
The Illinois Metropolitan Investment Fund (IMET) is a non-for-profit investment trust formed pursuant
to the Illinois Municipal Code. IMET is 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 the share price, the price for which the investment could be sold.
57
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
The Illinois Public Reserves Investment Management Trust (IPRIME) is an investment opportunity and
cash management service for Illinois Municipal Treasurers acting on behalf of counties, townships,
cities, towns, villages, special road districts, public water supply districts, fire protection districts,
drainage districts, levee districts, sewer districts, housing authorities, and all other political corporations
or subdivisions of the State of Illinois. Participation in IPRIME is voluntary. IPRIME is not registered
with the SEC as an Investment Company. Investments in IPRIME are valued at the share price, the
price for which the investment could be sold.
The deposits and investments of the Pension Funds are held separately from those of other Village funds.
Statutes authorize the Pension Fund to make deposits/invest in interest bearing direct obligations of the
United States of America; obligations that are fully guaranteed or insured as to the payment of principal
and interest by the United States of America; bonds, notes, debentures, or similar obligations of agencies
of the United States of America; savings accounts or certificates of deposit issued by banks or savings and
loan associations chartered by the United States of America or by the State of Illinois, to the extent that
the deposits are insured by the agencies or instrumentalities of the federal government; credit unions, to
the extent that the deposits are insured by the agencies or instrumentalities of the federal government;
State of Illinois bonds; pooled accounts managed by the Illinois Funds Market Fund (formerly known as
IPTIP, Illinois Public Treasurer’s Investment Pool), or by banks, their subsidiaries or holding companies,
in accordance with the laws of the State of Illinois; bonds or tax anticipation warrants of any county,
township, or municipal corporation of the State of Illinois; direct obligations of the State of Israel; money
market mutual funds managed by investment companies that are registered under the Federal Investment
Company Act of 1940 and the Illinois Securities Law of 1953 and are diversified, open-ended
management investment companies, provided the portfolio is limited to specified restrictions; general
accounts of life insurance companies; and separate accounts of life insurance companies and mutual
funds, the mutual funds must meet specific restrictions, provided the investment in separate accounts
and mutual funds does not exceed ten percent of the Pension Fund’s plan net position; and corporate
bonds managed through an investment advisor, rated as investment grade by one of the two largest
rating services at the time of purchase. Pension Funds with plan net position of $2.5 million or more
may invest up to forty-five percent of plan net position in separate accounts of life insurance companies
and mutual funds. Pension Funds with plan net position of at least $5 million that have appointed an
investment advisor, may through that investment advisor invest up to forty-five percent of the plan net
position in common and preferred stocks that meet specific restrictions. In addition, Pension Funds with
plan net position of at least $10 million that have appointed an investment advisor, may invest up to
fifty percent of its net position in common and preferred stocks and mutual funds that meet specific
restrictions effective July 1, 2011 and up to fifty-five percent effective July 1, 2012.
Village – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk
Deposits. At year-end, the carrying amount of the Village’s deposits for governmental and business-
type activities totaled $18,802,003 and the bank balances totaled $16,286,768.
58
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Village – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk –
Continued
Investments. The Village has the following investment fair values and maturities:
Fair Less Than More Than
Investment Type Value 1 1 to 5 6 to 10 10
State and Local Obligations $ 918,586 657,196 261,390 - -
Illinois Funds 8,698,318 8,698,318 - - -
IMET 7,835,919 7,835,919 - - -
IPRIME 19,520,083 19,520,083 - - -
36,972,906 36,711,516 261,390 - -
Investment Maturities (in Years)
The Village has the following recurring fair value measurements as of December 31, 2020:
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level (Level 1) (Level 2) (Level 3)
Debt Securities
State and Local Obligations $ 918,586 - 918,586 -
Investments Measured at the Net Asset Value (NAV)
Illinois Funds 8,698,318
IMET 7,835,919
IPRIME 19,520,083
Total Investments at the (NAV)36,054,320
Total Investments Measured at Fair Value 36,972,906
Fair Value Measurements Using
Totals
59
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Village – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk –
Continued
Investments - Continued. Debt Securities classified in Level 2 of the fair value hierarchy are valued
using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’
relationship to benchmark quoted prices.
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investment. The Village’s investment policy protects against fair value losses resulting from
rising interest rates by diversifying its investment portfolio to prevent over-concentration of assets in a
specific maturity, a specific issuer, or a specific class of securities. The Village does not have a formal
policy that limits investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The Village’s investment policy applies the “prudent person” standard in managing its
investment portfolio. As such, all investments are made with such judgement 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. At year-
end, the Village’s investment in the Illinois Funds was rated AAAm by Standard & Poor’s, the Illinois
Metropolitan Investment Trust Convenience Fund was not rated and the Illinois Public Reserves
Investment Management Trust was rated AAAm by Standard & Poor’s. The ratings on the Village’s
investments in the state and local obligations are rated AA to AA+ by Standard & Poor’s.
Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the
Village’s deposits may not be returned to it. 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.
60
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Village – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk –
Continued
Custodial Credit Risk – Continued. 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. At year-end, the entire amount of the bank balance
of deposits was covered by collateral, federal depository or equivalent insurance.
For an investment, this 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. It is the policy of the Village to require 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. The Village’s investments in the Illinois Funds, IMET, and IPRIME are not subject
to custodial credit risk.
Concentration Risk. This is the risk of loss attributed to the magnitude of the Village’s investment in a
single issuer. The Village limits the amount that can be invested in commercial paper to one-third of the
Village’s total investments. At year-end, the Village does not have any investments over 5 percent of
the total cash and investment portfolio (other than investments issued or explicitly guaranteed by the
U.S. government and investments in mutual funds, external investment pools, and other pooled
investments).
Police Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration
Risk
Deposits. At year-end, the carrying amount of the Fund’s deposits totaled $4,291,646 and the bank
balances totaled $4,300,806.
Investments. The Fund has the following investment fair values and maturities:
Fair Less Than More Than
Investment Type Value 1 1 to 5 6 to 10 10
U.S. Treasury Obligations $ 4,804,948 275,911 597,992 3,931,045 -
U.S. Agency Obligations 7,803,370 2,434,957 4,119,348 501,183 747,882
Corporate Bonds 12,515,277 602,212 3,539,175 7,475,478 898,412
25,123,595 3,313,080 8,256,515 11,907,706 1,646,294
Investment Maturities (in Years)
61
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Police Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration
Risk – Continued
The Fund has the following recurring fair value measurements as of December 31, 2020:
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level (Level 1) (Level 2) (Level 3)
Debt Securities
U.S. Treasury Obligations $ 4,804,948 4,804,948 - -
U.S. Agency Obligations 7,803,370 - 7,803,370 -
Corporate Bonds 12,515,277 - 12,515,277 -
Equity Securities
Mutual Funds 9,356,385 9,356,385 - -
Equity Securities 45,689,083 45,689,083 - -
Total Investments Measured
at Fair Value 80,169,063 59,850,416 20,318,647 -
Totals
Fair Value Measurements Using
Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing
technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark
quoted prices.
Interest Rate Risk. The Fund’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 Fund 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.
62
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Police Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration
Risk – Continued
Credit Risk. The Fund’s investment policy applies the “prudent person” standard in managing its
investment portfolio. As such, all investments are made with such judgement 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 Fund’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. At year-end,
the Fund’s investments in U.S. agency obligations ratings were not available and investments in
corporate bonds were rated Baa1 to A1 by Moody’s.
Custodial Credit Risk. The Fund’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. At year-end, the
entire amount of the bank balance of deposits was covered by collateral, federal depository or
equivalent insurance.
For an investment, this is the risk that in the event of the failure of the counterparty, the Fund will not
be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. It is the policy of the Fund to require all investments and investment collateral to be held
in safekeeping by a third-party custodial institution as designated by the Treasurer in the Fund’s name.
Direct investments guaranteed by the United States or an agency of the United States do not require
collateral.
Concentration Risk. The Fund limits the amount that can be invested in commercial paper to one-third
of the Fund’s total investments. In addition to the securities and fair values listed above, the Fund also
has $9,356,385 invested in mutual funds and $45,689,083 invested in equity securities. At year-end, the
Fund does not have any investments over 5 percent of net plan assets available for retirement benefits
(other than investments issued or explicitly guaranteed by the U.S. government and investments in
mutual funds, external investment pools, and other pooled investments).
63
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Police Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration
Risk – Continued
Concentration Risk – Continued. The Fund’s investment policy in accordance with Illinois Compiled
Statutes (ILCS) establishes the following target allocation across asset classes:
Long-Term
Expected Real
Asset Class Target Rate of Return
Fixed Income 33.00% 0.70% - 3.20%
Large Cap Domestic Equities 52.00%3.60%
Small Cap Domestic Equities 5.00%4.50%
International Equities 5.00%5.20%
Real Estate 3.00%4.00%
Cash and Cash Equivalents 2.00%0.00%
Illinois Compiled Statutes (ILCS) limit the 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 long-term expected rate of return on the Fund’s investments was determined using an asset
allocation study conducted by the Fund’s investment management consultant in January of 2021 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 the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic
real rates of return for each major asset class included in the Fund’s target asset allocation as of
December 31, 2020, are listed in the table above.
Rate of Return
For the year ended December 31, 2020, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 11.06%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
64
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Firefighters’ Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and
Concentration Risk
Deposits. At year-end, the carrying amount of the Fund’s deposits totaled $2,481,332 and the bank
balances totaled $2,481,339.
Investments. The Fund has the following investment fair values and maturities:
Fair Less Than More Than
Investment Type Value 1 1 to 5 6 to 10 10
U.S. Treasury Obligations $ 2,751,255 354,399 772,762 1,624,094 -
U.S. Agency Obligations 13,856,130 - 4,492,477 9,363,653 -
Corporate Bonds 5,113,802 201,214 1,076,157 3,836,431 -
State and Local Obligations 2,728,349 357,340 884,513 1,358,583 127,913
24,449,536 912,953 7,225,909 16,182,761 127,913
Investment Maturities (in Years)
The Fund has the following recurring fair value measurements as of December 31, 2020:
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Investments by Fair Value Level (Level 1) (Level 2) (Level 3)
Debt Securities
U.S. Treasury Obligations $ 2,751,255 2,751,255 - -
U.S. Agency Obligations 13,856,130 - 13,856,130 -
Corporate Bonds 5,113,802 - 5,113,802 -
State and Local Obligations 2,728,349 - 2,728,349 -
Equity Securities
Mutual Funds 50,045,698 50,045,698 - -
Total Investments Measured
at Fair Value 74,495,234 52,796,953 21,698,281 -
Fair Value Measurements Using
Totals
Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing
technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark
quoted prices.
65
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Firefighters’ Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and
Concentration Risk – Continued
Interest Rate Risk. The Fund’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 Fund does not have a formal
policy that limits investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates.
Credit Risk. The Fund’s investment policy applies the “prudent person” standard in managing its
investment portfolio. As such, all investments are made with such judgement 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 Fund’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. At year-end,
the Fund’s investments in U.S. agency obligations and corporate bonds ratings were not available and
investments in state and local obligations were not rated or rated Aaa to Aa1 by Moody’s.
Custodial Credit Risk. The Fund’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. At year-end, the
entire amount of the bank balance of deposits was covered by collateral, federal depository or
equivalent insurance.
For an investment, this is the risk that in the event of the failure of the counterparty, the Fund will not
be able to recover the value of its investments or collateral securities that are in the possession of an
outside party. It is the policy of the Fund to require all investments and investment collateral to be held
in safekeeping by a third-party custodial institution as designated by the Treasurer in the Fund’s name.
Direct investments guaranteed by the United States or an agency of the United States do not require
collateral.
66
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
Firefighters’ Pension Fund – Interest Rate Risk, Credit Risk, Custodial Credit Risk and
Concentration Risk – Continued
Concentration Risk. The Fund limits the amount that can be invested in commercial paper to one-third
of the Fund’s total investments. In addition to the securities and fair values listed above, the Fund also
has $50,045,698 invested in mutual funds. At year-end, the Fund does not have any investments over 5
percent of net plan assets available for retirement benefits (other than investments issued or explicitly
guaranteed by the U.S. government and investments in mutual funds, external investment pools, and
other pooled investments).
The Fund’s investment policy in accordance with Illinois Compiled Statutes (ILCS) establishes the
following target allocation across asset classes:
Long-Term
Expected Real
Asset Class Target Rate of Return
Fixed Income 35.00%1.50%
Large Cap Domestic Equities 45.50%5.90%
Small Cap Domestic Equities 13.00%7.70%
International Equities 6.50%7.20%
Cash and Cash Equivalents 0.00%0.00%
Illinois Compiled Statutes (ILCS) limit the 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 long-term expected rate of return on the Fund’s investments was determined using an asset
allocation study conducted by the Fund’s investment management consultant in January of 2021 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 the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic
real rates of return for each major asset class included in the Fund’s target asset allocation as of
December 31, 2020, are listed in the table above.
Rate of Return
For the year ended December 31, 2020, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 15.46%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
67
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
INTERFUND BALANCES
Interfund balances are advances in anticipation of receipts to cover temporary cash shortages. The
composition of interfund balances as of the date of this report, is as follows:
Receivable Fund Payable Fund
General Nonmajor Governmental $ 66,774
General Police Pension 84,629
Police Pension General 55,236
Fire Pension General 36,015
242,654
Amount
INTERFUND TRANSFERS
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from
the funds collecting the receipts to the Debt Service Fund as debt service payments become due, and (3)
use unrestricted revenues collected in the General Fund to finance various programs accounted for in
other funds in accordance with budgetary authorizations. Interfund transfers for the year consisted of
the following:
Transfer In Transfer Out
General Debt Service $ 240,000 (1)
General Nonmajor Governmental 988,315 (1)
General Water and Sewerage 780,000 (1)
Debt Service General 118,600 (2)
Debt Service Water and Sewerage 769,050 (2)
Debt Service Nonmajor Business-Type 375,000 (2)
Facilities Development General 550,000 (2)
Street Maintenance General 988,315 (2)
Street Maintenance Debt Service 5,783,647 (1)
Street Maintenance Nonmajor Governmental 200,000 (1)
Vehicle Replacement General 1,350,000 (2)
Nonmajor Governmental General 202,959 (3)
Water and Sewerage Debt Service 3,553,408 (1)
15,899,294
Amount
68
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
CAPITAL ASSETS
Governmental Activities
Governmental capital asset activity for the year was as follows:
Ending
Increases Decreases Balances
Nondepreciable Capital Assets
Land $ 38,160,179 1,342,757 - 39,502,936
Construction in Progress 1,581,460 2,309,469 1,581,460 2,309,469
39,741,639 3,652,226 1,581,460 41,812,405
Depreciable Capital Assets
Buildings 25,509,852 1,253,352 - 26,763,204
Equipment and Vehicles 13,342,453 3,080,365 164,403 16,258,415
Land Improvements 3,242,060 - - 3,242,060
Streets 23,844,548 4,611,718 - 28,456,266
Storm Sewers 38,470,478 - - 38,470,478
104,409,391 8,945,435 164,403 113,190,423
Less Accumulated Depreciation
Buildings 21,956,843 404,352 - 22,361,195
Equipment and Vehicles 7,854,880 877,993 164,403 8,568,470
Land Improvements 601,382 64,845 - 666,227
Streets 14,247,025 433,737 - 14,680,762
Storm Sewers 36,907,602 218,826 - 37,126,428
81,567,732 1,999,753 164,403 83,403,082
Net Depreciable Capital Assets 22,841,659 6,945,682 - 29,787,341
Net Capital Assets 62,583,298 10,597,908 1,581,460 71,599,746
Beginning
Balances
Depreciation expense was charged to governmental activities as follows:
General Government $ 170,505
Public Safety 518,125
Public Works 1,311,123
1,999,753
69
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
CAPITAL ASSETS – Continued
Business-Type Activities
Business-type capital asset activity for the year was as follows:
Ending
Increases Decreases Balances
Nondepreciable Capital Assets
Land $ 6,198,514 - - 6,198,514
Construction in Progress - 1,009,937 - 1,009,937
6,198,514 1,009,937 - 7,208,451
Depreciable Capital Assets
Buildings 11,170,610 - - 11,170,610
Equipment and Vehicles 89,960 - - 89,960
Land Improvements 1,966,485 - - 1,966,485
Infrastructure 76,828,552 2,110,470 - 78,939,022
90,055,607 2,110,470 - 92,166,077
Less Accumulated Depreciation
Buildings 10,156,289 351,936 - 10,508,225
Equipment and Vehicles 72,461 1,981 - 74,442
Land Improvements 1,966,485 - - 1,966,485
Infrastructure 40,665,548 1,574,640 - 42,240,188
52,860,783 1,928,557 - 54,789,340
Net Depreciable Capital Assets 37,194,824 181,913 - 37,376,737
Net Capital Assets 43,393,338 1,191,850 - 44,585,188
Beginning
Balances
Depreciation expense was charged to business-type activities as follows:
Water and Sewerage $ 1,574,640
Arboretum Golf 281,201
Buffalo Grove Golf 72,716
1,928,557
70
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
LONG-TERM DEBT
General Obligation Bonds
The Village issues general obligation bonds to provide funds for the acquisition and construction of
major capital facilities. General obligation bonds have been issued for governmental activities. General
obligation bonds are direct obligations and pledge the full faith and credit of the Village. General
obligation bonds currently outstanding are as follows:
Fund Debt Ending
Issue Retired by Issuances Retirements Balances
Debt
Service $ 395,000 - 395,000 -
Debt
Service 5,800,000 - 100,000 5,700,000
Debt
Service 4,215,000 - 570,000 3,645,000
Debt
Service 1,449,275 - 234,030 1,215,245
Debt
Service - 24,000,000 - 24,000,000
11,859,275 24,000,000 1,299,030 34,560,245
Beginning
Balances
$5,160,000 General Obligation
Refunding Bonds of 2010A -Due
in annual installments of $325,000
to $620,000 plus interest at 2.00%
to 4.00% through December 30,
2020.
$6,000,000 General Obligation
Bonds of 2012 -Due in annual
installments of $100,0000 to
$750,000 plus interest at 2.00%to
2.75% through June 30, 2030.
$6,125,000 General Obligation
Bonds of 2016 -Due in annual
installments of $300,000 to
$730,000 plus interest at 2.00%to
3.00% through December 30, 2031.
$1,449,275 General Obligation
Refunding Bonds of 2019 -Due in
annual installments of $234,030 to
$251,180 plus interest at 1.40%to
1.80% through December 30, 2025.
$24,000,000 General Obligation
Bonds of 2020 -Due in annual
installments of $1,330,000 to
$1,840,000 plus interest at 3.00%
to 5.00% through December 30,
2035.
71
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
LONG-TERM DEBT – Continued
IEPA Loans Payable
The Village has entered into loan agreements with the IEPA to provide low interest financing for pump
station improvements. IEPA loans currently outstanding are as follows:
Fund Debt Ending
Retired by Issuances Retirements Balances
Water and
Sewerage $ 311,332 - 19,092 292,240
Issue
$6,638,399 IEPA Loan Payable of
2013 -Pump Stations
Improvements -Due in semi-annual
installments of $6,788 to $12,916,
plus interest at 2.295%, through
December 1, 2033.
Beginning
Balances
Installment Contract Payable
The Village also issues installment contracts payable to provide funds for the purchase of capital assets.
Installment contracts currently outstanding are as follows:
Fund Debt Ending
Retired by Issuances Retirements Balances
Water and
Sewerage $ 6,001,817 - 386,802 5,615,015
Issue
Installment Note Payable dated
March 27, 2015, due in quarterly
installments of $21,449 to
$227,680, plus interest at 2.35%
through June 1, 2029.
Beginning
Balances
Asset Retirement Obligation
The Village has recognized an asset retirement obligation (ARO) and related deferred outflow of
resources in connection with its obligation to seal and abandon various water wells, to seal underground
tanks, and lift station at the end of their estimated useful lives in accordance with federal, state, and/or
local requirements. The ARO was measured using actual historical costs for similar abandonments,
adjusted for inflation through the end of the year. The estimated remaining useful lives of the water
wells are 25 years, underground tanks are 1-50 years, and lift stations are 5 years.
72
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS
LONG-TERM DEBT – Continued
Long-Term Liability Activity
Changes in long-term liabilities during the fiscal year were as follows:
Amounts
Ending Due within
Additions Deductions Balances One Year
Governmental Activities
Compensated Absences $ 1,881,916 600,147 1,200,294 1,281,769 256,354
Net Pension Liability - IMRF
Governmental Activities 9,900,727 - 4,740,251 5,160,476 -
Net Pension Liability - Police 29,585,230 - 2,965,123 26,620,107 -
Net Pension Liability - Firefighters'18,320,693 - 6,045,715 12,274,978 -
Total OPEB Liability - RBP 10,757,944 3,238,844 - 13,996,788 -
General Obligation Bonds 11,859,275 24,000,000 1,299,030 34,560,245 2,550,445
Plus: Unamortized Premium 76,752 2,720,164 6,396 2,790,520 -
82,382,537 30,559,155 16,256,809 96,684,883 2,806,799
Business-Type Activities
Compensated Absences 101,971 29,076 14,538 116,509 23,302
Net Pension Liability - IMRF 1,566,929 - 740,457 826,472 -
Total OPEB Liability - RBP 621,870 202,412 - 824,282 -
IEPA Loans Payable 311,332 - 19,092 292,240 19,532
Installment Note Payable 6,001,817 - 386,802 5,615,015 436,970
Asset Retirement Obligation - 1,725,500 - 1,725,500 -
8,603,919 1,956,988 1,160,889 9,400,018 479,804
Beginning
Type of Debt Balances
For the governmental activities, payments on the compensated absences, the net pension liabilities and
the total OPEB liability are made by the General Fund. Payments on general obligation bonds are being
liquidated by the Debt Service Fund.
73
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
LONG-TERM DEBT – Continued
Long-Term Liability Activity – Continued
Additionally, for the business-type activities, the compensated absences are being liquidated by the
Water and Sewerage Fund and the Buffalo Grove Golf Fund. The net pension liability is being
liquidated by the Water and Sewerage Fund, the Arboretum Golf Fund and the Buffalo Grove Golf
Fund. The total OPEB liability is being liquidated by the Water and Sewerage Fund and Buffalo Grove
Golf Fund. The IEPA loans payable, installment note payable and asset retirement obligation are being
liquidated by the Water and Sewerage Fund.
Debt Service Requirements to Maturity
The annual debt service requirements to maturity, including principal and interest, are as follows:
Principal Interest Principal Interest Principal Interest
2021 $ 2,550,445 1,198,614 19,532 6,596 436,970 128,372
2022 2,570,990 1,100,782 19,983 6,145 490,763 117,611
2023 2,591,265 1,002,446 20,444 5,684 548,394 105,549
2024 2,611,365 903,466 20,916 5,212 610,091 92,095
2025 2,646,180 803,976 21,399 4,729 676,096 77,149
2026 2,310,000 702,969 21,893 4,235 746,659 60,610
2027 2,385,000 615,244 22,398 3,730 822,046 42,367
2028 2,510,000 522,688 22,915 3,213 902,537 22,304
2029 2,640,000 424,175 23,444 2,684 381,459 3,371
2030 2,695,000 350,475 23,985 2,143 - -
2031 2,005,000 271,500 24,539 1,589 - -
2032 1,685,000 211,350 25,105 1,023 - -
2033 1,735,000 160,800 25,687 441 - -
2034 1,785,000 108,750 - - - -
2035 1,840,000 55,200 - - - -
34,560,245 8,432,435 292,240 47,424 5,615,015 649,428
Fiscal Bonds Loan Payable
Year
Totals
Installment
Note Payable
Business-Type ActivitiesGovernmental Activities
General Obligation IEPA
74
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
LONG-TERM DEBT – Continued
Legal Debt Margin
Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin.
“The General Assembly may limit by law the amount and require referendum approval of debt to the
incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of
the following percentages of the assessed value of its taxable property…(2) if its population is more
than 25,000 and less than 500,000 an aggregate of one percent: indebtedness which is outstanding on
the effective date (July 1, 1971) of this constitution or which is thereafter approved by
referendum…shall not be included in the foregoing percentage amounts.” To date the Illinois General
Assembly has set no limits for home rule municipalities. The Village is a home rule municipality.
OPERATING LEASES
The Village has commitments with non-Village entities to lease certain property. Future minimum
rental commitments are as follows:
Fiscal
Year
2021 $136,193
2022 138,917
2023 141,695
2024 144,529
561,334
Total
Payments
Lease
PROPERTY TAXES
Property taxes for 2019 attach as an enforceable lien on January 1, on property values assessed as of the
same date. Taxes are levied by December of the subsequent fiscal year (by passage of a Tax Levy
Ordinance). Tax bills are prepared by Lake County and are payable in two installments, on or about
July 1 and September 1 during the following year. The County collects such taxes and remits them
periodically. The allowance for uncollectible taxes has been stated at 1% of the tax levy to reflect actual
collection experience.
75
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
TAX ABATEMENTS
The Village has entered into a tax abatement agreement with Woodman’s Food Market, Inc. as an
incentive to stimulate economic development. The abatement is authorized through a Development
Agreement passed by the Village Board in Ordinance 2016-067 on December 19, 2018. Woodman’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 Woodman’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. Woodman’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. As of
December 31, 2020, the Village owes Woodman’s Food Market, Inc. $865,504.
The Village 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,
Ordinance 2009-47 on August 3 2009 and Ordinance 2020-060 on August 17, 2020. 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 6o 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. The Village's incentive payments for the year ended
December 31, 2020 were $1,323,149.
The Village 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, LLC 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, LLC with a
tax abatement of 100 percent of the municipal sales tax in year one of the agreement, this percentage
decreases 10 percent per year until year seven of the agreement. The amount of municipal sales tax
abated to LAB Development, LLC could not exceed $500,000 over the seven-year term. The amended
agreement extended the abatements to LAB Development, LLC under new terms. LAB Development,
76
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
TAX ABATEMENTS – Continued
LLC 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 year 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, LLC 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. The Village's incentive payments for the year ended December 31, 2020 were
$186,364.
The Village has entered into a tax abatement agreement with Zonatherm. In order to encourage
Zonatherm to maintain its business operation in the Village, and to assist with their project in the
Village, the Village agrees to share home rule sales tax received by the Village using a formula which
corresponds to new sales tax generated by Zonatherm over a finite period of time. For the fist sales tax
year, 100 percent of that year’s incremental municipal sales tax above the base of $100,000 will be paid
to Zonatherm. For the second sales tax year 90 percent of that year’s municipal sales tax above the base
of $100,000 will be paid to Zonatherm. For the third sales tax year 80 percent of that year’s municipal
sales tax above the base of $100,000 will be paid to Zonatherm. For the fourth sales tax year 70 percent
of that year’s municipal sales tax above the base of $100,000 will be paid to Zonatherm. For the fifth
sales tax year 60 percent of that year’s municipal sales tax above the base of $100,000 will be paid to
Zonatherm. For the sixth sales tax year 50 percent of that year’s municipal sales tax above the base of
$100,000 will be paid to Zonatherm. For the seventh sales tax year 50 percent of that year’s municipal
sales tax above the base of $100,000 will be paid to Zonatherm. The entire distribution cannot exceed
$500,000 in aggregate. This agreement will end upon the completion of the seventh year or the
$500,000 cap. In the event that Zonatherm ceases the business with seven years or generate less than
$1,000 in sales tax in any sales tax year, Zonatherm shall reimburse the Village 100 percent of the
municipal sales tax payments received. The Village's incentive payments for the year ended December
31, 2020 were $0.
In order to encourage BITS to relocate its business operation to the Village of Buffalo Grove, and to
assist with their project in the Village, the Village agrees to share a portion of its home rule sales tax
received by the Village using a formula which corresponds to new sales tax revenue generated by the
business over a finite period of time. For the first sales tax year, 75 percent of that year’s home rule
sales tax received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of
77
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
TAX ABATEMENTS – Continued
that year’s home rule sales tax for annual taxable sales greater than $40,000,000. For the second sales
tax year, 75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000
in annual taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales
greater than $40,000,000. For the third sales tax year, 75 percent of that year’s home rule sales tax
received by the Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s
home rule sales tax for the annual taxable sales greater than $40,000,000. For the fourth sales tax year,
75 percent of that year’s home rule sales tax received by the Village for the first $40,000,000 in annual
taxable sales and 100 percent of that year’s home rule sales tax for the annual taxable sales greater than
$40,000,000. For the fifth sales tax year, 75 percent of that year’s home rule sales tax received by the
Village for the first $40,000,000 in annual taxable sales and 100 percent of that year’s home rule sales
tax for the annual taxable sales greater than $40,000,000. For the sixth sales tax year, 75 percent of that
year’s home rule sales tax received by the Village for the first $40,000,000 in annual taxable sales and
100 percent of that year’s home rule sales tax for the annual taxable sales greater than $40,000,000.
Should BITS relocate or cease its business within the first two years of the agreement BITS shall
reimburse the Village 85 percent of the total home rule sales tax distributed. Should BITS relocate or
cease business after two years of this agreement than BITS agrees to reimburse the Village 75 percent
of the total home rules sales tax payments received. Should BITS relocate or cease business after three
years of this agreement than BITS agrees to reimburse the Village 55 percent of the total home rules
sales tax payments received. Should BITS relocate or cease business after four years of this agreement
than BITS agrees to reimburse the Village 40 percent of the total home rules sales tax payments
received. Should BITS relocate or cease business after five years of this agreement than BITS agrees to
reimburse the Village 35 percent of the total home rules sales tax payments received. The Village's
incentive payments for the year ended December 31, 2020 were $441,261.
FUND BALANCE/NET POSITION
Fund Balance Classifications
In the governmental fund financial statements, the Village considers restricted amounts to have been
spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available. The Village first utilizes committed, then assigned and then unassigned fund
balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are
available.
Nonspendable Fund Balance. Consists of resources that cannot be spent because they are either: a) not
in a spendable form; or b) legally or contractually required to be maintained intact.
Restricted Fund Balance. Consists of resources that are restricted to specific purposes, that is, when
constraints placed on the use of resources are either: a) externally imposed by creditors (such as through
debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by
law through constitutional provisions or enabling legislation.
78
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
FUND BALANCE/NET POSITION – Continued
Fund Balance Classifications – Continued
Committed Fund Balance. Consists of resources constrained (issuance of an ordinance) to specific
purposes by the government itself, using its highest level of decision-making authority, the Village
Board; to be reported as committed, amounts cannot be used for any other purpose unless the
government takes the same highest-level action to remove or change the constraint.
Assigned Fund Balance. Consists of amounts that are constrained by the Village Board intent to be used
for specific purposes but are neither restricted nor committed. Intent is expressed by the Village Board
itself or by a body or official to which the Village Board has delegated the authority to assign amounts
to be used for specific purposes. The Village’s’ highest level of decision-making authority is the
Village Board, who is authorized to assign amounts to a specific purpose.
Unassigned Fund Balance. Consists of residual net resources of a fund that has not been restricted,
committed, or assigned within the General Fund and deficit fund balances of other governmental funds.
Minimum Fund Balance Policy. The Village’s fund balance policy for the General Fund requires
committed fund balance to be maintained at a minimum of 25% of budgeted operating expenditures.
The following is a schedule of fund balance classifications for the governmental funds as of the date of
this report:
Vehicle
Debt Facilities Street Equipment
Service Development Maintenance Replacement Nonmajor Totals
Fund Balances
Nonspendable
Inventories $113,850 - - - - - 113,850
Prepaids 457,804 - - - - - 457,804
571,654 - - - - - 571,654
Restricted
Seizure Funds 497,577 - - - - - 497,577
IMRF 262,583 - - - - - 262,583
Motor Fuel Tax - - - - - 2,971,226 2,971,226
Metra Parking Lot - - - - - 42,070 42,070
Debt Service - 231,373 - - - - 231,373
Capital Projects - 16,598,094 - - - - 16,598,094
760,160 16,829,467 - - - 3,013,296 20,602,923
Committed
Capital Projects 9,052,502 - 41,307 241,751 17,745 - 9,353,305
Unassigned 20,134,162 - - - - - 20,134,162
Total Fund Balances 30,518,478 16,829,467 41,307 241,751 17,745 3,013,296 50,662,044
General
Capital Projects
79
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
NET POSITION/FUND BALANCE – Continued
Net Position Classifications
Net investment in capital assets was comprised of the following as of December 31, 2020:
Governmental Activities
Capital Assets - Net of Accumulated Depreciation $ 71,599,746
Plus: Unspent Bond Proceeds 16,598,094
Less Capital Related Debt:
General Obligation Bonds (34,560,245)
Unamortized Premium (2,790,520)
Net Investment in Capital Assets 50,847,075
Business-Type Activities
Capital Assets - Net of Accumulated Depreciation 44,585,188
Less Capital Related Debt:
IEPA Loans Payable (292,240)
Installment Note Payable (5,615,015)
Net Investment in Capital Assets 38,677,933
NOTE 4 – OTHER INFORMATION
RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of
assets; errors and omissions; natural disasters; and injuries to the Village’s employees. The Village has
purchased insurance from private insurance companies. Risks covered included certain types of
liabilities and bonds. Premiums have been displayed as expenditures/expenses in appropriate funds.
There were no significant changes in insurance coverages from the prior year and settlements did not
exceed insurance coverage in any of the past three fiscal years.
80
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
CONTINGENT LIABILITIES
Litigation
The Village is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, in the opinion of the Village’s attorney, the resolution of these matters will not have a
material adverse effect on the financial condition of the Village.
Grants
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which
may be disallowed by the grantor cannot be determined at this time although the Village expects such
amounts, if any, to be immaterial.
Financial Impact of COVID-19
In March of 2020, the World Health Organization declared the COVID-19 virus a public health
emergency. As of the date of this report, the extent of the impact of COVID-19 on the Village’s
operations and financial position cannot be determined.
JOINT VENTURES
Northwest Water Commission (NWWC)
The Village is a member of the Northwest Water Commission (NWWC) which consists of four
municipalities. NWWC 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). NWWC 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 four members of NWWC and their percentage shares as of April
30, 2020 are as follows:
Percent
Share
Village of Arlington Heights 36.43 %
Village of Buffalo Grove 17.06
Village of Palatine 29.10
Village of Wheeling 17.41
100.00 %
81
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Northwest Water Commission (NWWC) – Continued
These percentage shares are based upon formula contained in the water supply agreement and are
subject to change in future years based on consumption by the municipalities.
The members form a contiguous geographic service area which is located northwest of downtown
Chicago. Under the NWWC Agreement, additional members may join NWWC upon the approval of
each member.
NWWC 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 NWWC are appointed by
the Board of Commissioners. The Board of Commissioners determines the general policy of NWWC,
makes all appropriations, approves contracts for sale or purchase of water, adopts by-laws, rules and
regulations, and exercises such powers and performs such duties as may be prescribed in the NWWC
Agreement or the by-laws.
Summary of financial positions as of April 30, 2020:
Current Assets $16,034,979 Current Liabilities $ 748,620
Noncurrent Assets Noncurrent Liabilities -
Capital Assets 33,802,677
Total Liabilities 748,620
Total Assets 49,837,656
Net Position 49,089,036 Summary of revenues, expenses and changes in net position for the year ended April 30, 2020:
Operating Revenues $ 12,606,012
Operating Expenses 10,898,057
Operating Income 1,707,955
Nonoperating Revenue (Expenses)517,692
Change in Net Position 2,225,647
Net Position - Beginning 46,863,389
Net Position - Ending 49,089,036
82
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Northwest Water Commission (NWWC) – Continued
Complete financial statements can be obtained from the Northwest Water Commission, 1525 North Wolf
Road, Des Plaines, Illinois 60015.
NWWC’s bonds are revenue obligations. They are limited obligations of NWWC with a claim for
payment solely from and secured by a pledge of the revenues of the system and amounts in various funds
and accounts established by NWWC resolutions. The bonds are not a debt of any member. NWWC has
no power to levy taxes.
Revenues of the system consist of: (a) all receipts derived from Water Supply Contracts or any other
contract for the supply of water; (b) all income derived from the investment of monies; and (c) all income,
fees, water service charges, and all rates, rents and receipts derived by NWWC from the ownership and
operation of the system and the sale of water. JAWA covenants to establish fees and charges sufficient to
provide revenues to meet all its requirements.
N/WWC has entered into Water Supply Contracts with the four-member municipalities for a term of 40
years, extending to 2030. The Water Supply Contracts are irrevocable and may not be terminated or
amended except as provided in the Water Supply 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.
NWWC 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 NWWC through the year 2030.
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 NWWC of its obligations under this
Contract.
The payments required to be made by the Village under this Contract are required to be made solely from
revenues to be derived by the Village from the operation of the Village’s system. Members are not
prohibited by the Contract from using other available funds to make payments required under the
Contract. This 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 Agreement from revenues of the
Waterworks and Sewerage System shall be payable from the operation and maintenance account of the
Water and Sewerage Fund.
In accordance with the joint venture agreement, the Village remitted $1,756,594 to NWWC for the year
ended April 30, 2020. All payments were paid from the Water and Sewerage Fund. The Village’s share of
net position of NWWC was $8,374,590 at April 30, 2020.
83
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Solid Waste Agency of Northern Cook County (SWANCC)
The Village is a member of the Solid Waste Agency of Northern Cook County (SWANCC) which
consists of twenty-three municipalities. SWANCC is a municipal corporation and public body politic
established pursuant to the Constitution Act of the State of Illinois and the Intergovernmental
Cooperation Act of the State of Illinois, as amended.
SWANCC is empowered to plan, construct, finance, operate, and maintain a solid waste disposal
system to serve its members. SWANCC is governed by a Board of Directors which consists of one
appointed representative from each member municipality. Each Director has an equal vote. The officers
of SWANCC are appointed by the Board of Directors.
The Board of Directors determines the general policy of SWANCC, makes all appropriations, approves
contracts, adopts resolutions providing for the issuance of bonds or notes by SWANCC, adopts by-
laws, rules and regulations, and exercises such powers and performs such duties as may be prescribed
in the SWANCC agreement or the by-laws. Separate audited financial statements are available at 77 W
Hintz Road, Suite 200, Wheeling, Illinois 60090.
SWANCC’s bonds are revenue obligations. They are limited obligations of SWANCC, with a claim for
payment solely from and secured by a pledge of the revenues of the system, and amounts in various
funds and accounts established by SWANCC resolutions. SWANCC has no power to levy taxes.
Revenues of the system consist of: (a) all receipts derived from Solid Waste Disposal Contracts or any
other contracts for the disposal of waste; (b) all income derived from the investment of monies; and (c)
all income, fees, service charges, and all grants, rents, and receipts derived by SWANCC from the
ownership and operation of the system.
SWANCC covenants to establish fees and charges sufficient to provide revenues to meet all its
requirements.
SWANCC has entered into Solid Waste Disposal Contracts with the member municipalities. The
Contracts are irrevocable, and may not be terminated or amended, except as provided in the Contract.
Each member is obligated, on a “take or pay” basis, to purchase or in any event to pay for a minimum
annual cost of the system.
The obligation of the Village to make all payments as required by this Contract is unconditional and
irrevocable, without regard to performance or nonperformance by SWANCC of its obligations under
this Contract.
84
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Solid Waste Agency of Northern Cook County (SWANCC) – Continued
The payments required to be made by the Village under this Contract are required to be made solely
from revenues to be derived by the Village from the operation of the Municipal Waste System Fund.
The Village is not prohibited by the Contract from using any other funds to make the payments required
by the Contract. The Contract shall not constitute an indebtedness of the Village within the meaning of
nay statutory or constitutional limitation.
In accordance with the joint venture agreement, the Village remitted $803,999 to SWANCC for the
year ended December 31, 2020, which is recorded in the Village’s Refuse Service Fund.
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS
The Village contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund
(IMRF), a defined benefit agent multiple-employer public employee retirement system and the Police
Pension Plan which is a single-employer pension plan, and the Firefighters’ Pension Plan which is a
single-employer pension plan. A separate report is issued for the Police Pension Plan and Firefighters’
Pension Plan and may be obtained by writing to the Village at 50 Raupp Boulevard, Buffalo Grove,
Illinois 60089. IMRF issues a publicly available financial report that includes financial statements and
required supplementary information for the plan as a whole, but not by individual employer. That report
may be obtained online at www.imrf.org. The benefits, benefit levels, employee contributions, and
employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by
the Illinois General Assembly.
The aggregate amount recognized for the three pension plans is:
Net Pension Deferred Deferred
Liability Outflows Inflows
IMRF $ 1,292,481 5,986,948 2,858,934 3,231,728
Police Pension 2,117,754 26,620,107 2,986,027 7,406,191
Firefighters' Pension 618,442 12,274,978 2,418,583 7,769,688
4,028,677 44,882,033 8,263,544 18,407,607
Pension
Expense
Illinois Municipal Retirement Fund (IMRF)
Plan Descriptions
Plan Administration. All employees (other than those covered by the Police Pension Plan and the
Firefighters’ Pension Plan) hired in positions that meet or exceed the prescribed annual hourly standard
must be enrolled in IMRF as participating members. The plan is accounted for on the economic
resources measurement focus and the accrual basis of accounting. Employer and employee
contributions are recognized when earned in the year that the contributions are required, benefits and
refunds are recognized as an expense and liability when due and payable.
85
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Plan Descriptions – Continued
Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the
Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs,
and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials
elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date).
IMRF provides two tiers of pension benefits. Employees hired before January 1, 2011, are eligible for
Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of
qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60
(at full benefits) with eight years of service are entitled to an annual retirement benefit, payable
monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of
service credit, plus 2% for each year of service credit 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 consecutive 48
months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3%
of the original amount on January 1 every year after retirement.
Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees,
pension benefits vest after ten years of service. Participating employees who retire at age 62 (at
reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an
annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate
of earnings for the first 15 years of service credit, plus 2% for each year of service credit 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 on January 1 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.
86
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Plan Descriptions – Continued
Plan Membership. As of December 31, 2019, the measurement date, the following employees were
covered by the benefit terms:
Inactive Plan Members Currently Receiving Benefits 112
Inactive Plan Members Entitled to but not yet Receiving Benefits 58
Active Plan Members 100
Total 270
Contributions. As set by statute, the Village’s Regular Plan Members are required to contribute 4.5%
of their annual covered salary. The statute requires employers to contribute the amount necessary, in
addition to member contributions, to finance the retirement coverage of its own employees. For the
year-ended December 31, 2020, the Village’s contribution was 13.63% of covered payroll.
Net Pension Liability. The Village’s net pension liability was measured as of December 31, 2019. The
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date.
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed,
as of December 31, 2019, using the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age
Normal
Asset Valuation Method Market
Actuarial Assumptions
Interest Rate 7.25%
Salary Increases 3.35% to 14.25%
Cost of Living Adjustments 3.25%
Inflation 2.50%
87
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Plan Descriptions – Continued
Actuarial Assumptions – Continued. For non-disabled retirees, an IMRF specific mortality table was
used with fully generational projection scale MP-2017 (base year 2015). 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-2017 (base year 2015). 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-2017 (base year 2015). The IMRF specific rates were developed from
the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense, and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return to the target asset allocation percentage and adding expected inflation. The target
allocation and best estimates of geometric real rates of return for each major asset class are summarized
in the following table:
Long-Term
Expected Real
Asset Class Target Rate of Return
Fixed Income 28.00%3.25%
Domestic Equities 37.00%5.75%
International Equities 18.00%6.50%
Real Estate 9.00%5.20%
Blended 7.00% 3.60% - 7.60%
Cash and Cash Equivalents 1.00%1.85%
88
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Discount Rate
The discount rate used to measure the total pension liability was 7.25%, 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 the actuarially determined contribution rates and the member rate. Based on
those assumptions, the IMRF’s fiduciary net position was projected to be available to make all project
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all period 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 as well as
what the Village’s net pension liability would be if it were calculated using a discount rate that is one
percentage point lower or one percentage point higher than the current rate:
Current
Discount Rate
(7.25%)
Net Pension Liability/(Asset)$ 14,663,672 5,986,948 (1,164,549)
1% Decrease 1% Increase
(6.25%)(8.25%)
89
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Changes in the Net Pension Liability
Total
Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(A) (B) (A) - (B)
Balances at December 31, 2018 $ 65,716,729 54,249,073 11,467,656
Changes for the Year:
Service Cost 908,935 - 908,935
Interest on the Total Pension Liability 4,689,245 - 4,689,245
Changes of Benefit Terms - - -
Difference Between Expected and Actual
Experience of the Total Pension Liability 492,814 - 492,814
Changes of Assumptions - - -
Contributions - Employer - 1,053,229 (1,053,229)
Contributions - Employees - 421,491 (421,491)
Net Investment Income - 10,038,062 (10,038,062)
Benefit Payments, including Refunds
of Employee Contributions (2,983,908) (2,983,908)-
Other (Net Transfer)- 58,920 (58,920)
Net Changes 3,107,086 8,587,794 (5,480,708)
Balances at December 31, 2019 68,823,815 62,836,867 5,986,948
90
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to
Pensions
For the year ended December 31, 2020, the Village recognized pension expense of $1,292,481. At
December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Inflows of
Resources Totals
Difference Between Expected and Actual Experience $ 682,363 (55,664) 626,699
Change in Assumptions 958,198 (586,806) 371,392
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments -(2,589,258) (2,589,258)
Total Pension Expense to be
Recognized in Future Periods 1,640,561 (3,231,728) (1,591,167)
Pension Contributions Made Subsequent
to the Measurement Date 1,218,373 -1,218,373
Total Deferred Amounts Related to IMRF 2,858,934 (3,231,728) (372,794)
Deferred
Outflows of
Resources
$1,218,373 reported as deferred outflows of resources related to pensions resulting from employer
contributions subsequent to the measurement date and will be recognized as a reduction of the net
pension liability in the reporting year ended December 31, 2021. Amounts reported as deferred
outflows of resources and deferred inflows of resources related to pensions will be recognized in
pension expense in future periods as follows:
Net Deferred
Outflows/
Fiscal (Inflows)
Year of Resources
2021 $ (581,083)
2022 (215,188)
2023 436,620
2024 (1,231,516)
2025 -
Thereafter -
Total (1,591,167)
91
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Police Pension Plan
Plan Descriptions
Plan Administration. The Police Pension Plan is a single-employer defined benefit pension plan that
covers all sworn police personnel. The defined benefits and employee and minimum employer
contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and may be amended
only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is
governed by a five-member pension board. Two members of the Board are appointed by the Village
President, one member is elected by pension beneficiaries and two members are elected by active police
employees.
Plan Membership. At December 31, 2020, the measurement date, membership consisted of the
following:
Inactive Plan Members Currently Receiving Benefits 54
Inactive Plan Members Entitled to but not yet Receiving Benefits 8
Active Plan Members 64
Total 126 Benefits Provided. The following is a summary of the Police Pension Plan as provided for in Illinois
State Statutes.
The Police Pension Plan provides retirement benefits through two tiers of benefits as well as death and
disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the age of 50 or
older with 20 or more years of creditable service are entitled to receive an annual retirement benefit of
½ of the salary attached to the rank held on the last day of service, or for one year prior to the last day,
whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each
additional year of service over 20 years up to 30 years, to a maximum of 75 percent of such salary.
Employees with at least eight years but less than 20 years of credited service may retire at or after age
60 and receive a reduced benefit. The monthly benefit 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 be paid upon reaching the age of at least 55 years, by 3 percent of the original pension
and 3 percent compounded annually thereafter. Covered employees hired on or after January 1, 2011
(Tier 2), attaining the age of 55 or older with 10 or more years of creditable service are entitled to
receive an annual retirement benefit equal to the average monthly salary obtained by dividing the total
salary of the police officer during the 48 consecutive months of service within the last 60 months of
service in which the total salary was the highest by the number of months of service in that period.
Police officer salary for the pension purposes is capped at $106,800, plus the lesser of ½ of the annual
change in the Consumer Price Index or 3 percent compounded.
92
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Police Pension Plan – Continued
Plan Descriptions – Continued
Benefits Provided – Continued. The annual benefit shall be increased by 2.5 percent of such a salary for
each additional year of service over 20 years up to 30 years to a maximum of 75 percent of such salary.
Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit (i.e., ½
percent for each month under 55). The monthly benefit of a Tier 2 police officer shall be increased
annually at age 60 on the January 1st after the police officer retires, or the first anniversary of the
pension starting date, whichever is later. Noncompounding increases occur annually, each January
thereafter. The increase is the lesser of 3 percent or ½ of the change in the Consumer Price Index for the
proceeding calendar year.
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 plan and the administrative costs as actuarially
determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the Village to
contribute a minimum amount annually calculated using the projected unit credit actuarial cost method
that will result in the funding of 90% of the past service cost by the year 2040. For the year-ended
December 31, 2020, the Village’s contribution was 42.31% of covered payroll.
Concentrations. At year end, the Pension Plan does not have any investments (other than investments
issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external
investment pools, and other pooled investments) in any one organization that represent 5 percent or more
of net position available for benefits.
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation performed, as of December 31,
2020, using the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market
Actuarial Assumptions
Interest Rate 7.00%
Salary Increases Graded by Years of Service
Cost of Living Adjustments 3.25%
Inflation 2.25%
93
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Police Pension Plan – Continued
Actuarial Assumptions – Continued
Mortality rates were based on the PubS-2010(A) adjusted for plan status, collar, and Illinois Public
Pension data, as appropriate.
Discount Rate
The discount rate used to measure the total pension liability 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 the actuarially determined contribution rates and the member rate. Based on
those assumptions, the Fund’s fiduciary net position was projected to be available to make all project
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all period 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 as well as
what the Village’s net pension liability would be if it were calculated using a discount rate that is one
percentage point lower or one percentage point higher than the current rate:
Current
Discount Rate
(7.00%)
Net Pension Liability $ 44,362,120 26,620,107 12,297,499
1% Decrease 1% Increase
(6.00%)(8.00%)
94
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Police Pension Plan – Continued
Changes in the Net Pension Liability
Total
Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(A) (B) (A) - (B)
Balances at December 31, 2019 $ 106,403,950 76,818,720 29,585,230
Changes for the Year:
Service Cost 1,978,338 - 1,978,338
Interest on the Total Pension Liability 7,214,313 - 7,214,313
Changes of Benefit Terms - - -
Difference Between Expected and Actual
Experience of the Total Pension Liability 832,348 - 832,348
Changes of Assumptions (639,813)- (639,813)
Contributions - Employer - 3,095,593 (3,095,593)
Contributions - Employees - 820,098 (820,098)
Contributions - Other - - -
Net Investment Income - 8,491,232 (8,491,232)
Benefit Payments, including Refunds
of Employee Contributions (4,677,746) (4,677,746)-
Administrative Expense - (56,614) 56,614
Net Changes 4,707,440 7,672,563 (2,965,123)
Balances at December 31, 2020 111,111,390 84,491,283 26,620,107
95
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Police Pension Plan – Continued
Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to
Pensions
For the year ended December 31, 2020, the Village recognized pension expense of $2,117,754. At
December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources Totals
Difference Between Expected and Actual Experience $ 1,849,559 (63,619) 1,785,940
Change in Assumptions 1,136,468 (1,758,538) (622,070)
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - (5,584,034) (5,584,034)
Total Deferred Amounts Related to Police Pension 2,986,027 (7,406,191) (4,420,164)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense in future periods as follows:
Fiscal
Year
2021 $ (1,615,759)
2022 (939,239)
2023 (1,944,003)
2024 (154,089)
2025 232,926
Thereafter -
Total (4,420,164)
Net Deferred
(Inflows)
of Resources
Outflows/
96
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Firefighters’ Pension Plan
Plan Descriptions
Plan Administration. The Firefighters’ Pension Plan is a single-employer defined benefit pension plan
that covers all sworn firefighter personnel. The defined benefits and employee and minimum employer
contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and may be amended
only by the Illinois legislature. The Village accounts for the Fund as a pension trust fund. The Fund is
governed by a five-member pension board. Two members of the Board are appointed by the Village
President, one member is elected by pension beneficiaries and two members are elected by active fire
employees.
Plan Membership. At December 31, 2020, the measurement date, membership consisted of the
following:
Inactive Plan Members Currently Receiving Benefits 47
Inactive Plan Members Entitled to but not yet Receiving Benefits 1
Active Plan Members 56
Total 104
Benefits Provided. The following is a summary of the Firefighters’ Pension Plan as provided for in
Illinois State Statutes.
The Firefighters’ Pension Plan provides retirement benefits through two tiers of benefits as well as
death and disability benefits. Covered employees hired before January 1, 2011 (Tier 1), attaining the
age of 50 or older with 20 or more years of creditable service are entitled to receive an annual
retirement benefit of ½ of the salary attached to the rank held on the last day of service, or for one year
prior to the last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such
salary for each additional year of service over 20 years up to 30 years, to a maximum of 75 percent of
such salary. Employees with at least eight years but less than 20 years of credited service may retire at
or after age 60 and receive a reduced benefit. The monthly benefit 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 be paid upon reaching the age of at least 55 years, by 3 percent of the
original pension and 3percent compounded annually thereafter.
97
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Firefighters’ Pension Plan – Continued
Plan Descriptions – Continued
Benefits Provided – Continued. Covered employees hired on or after January 1, 2011 (Tier 2), attaining
the age of 55 or older with 10 or more years of creditable service are entitled to receive an annual
retirement benefit equal to the average monthly salary obtained by dividing the total salary of the
firefighter during the 48 consecutive months of service within the last 60 months of service in which the
total salary was the highest by the number of months of service in that period. Firefighters’ salary for
the pension purposes is capped at $106,800, plus the lesser of ½ of the annual change in the Consumer
Price Index or 3 percent compounded. The annual benefit shall be increased by 2.5 percent of such a
salary for each additional year of service over 20 years up to 30 years to a maximum of 75 percent of
such salary. Employees with at least 10 years may retire at or after age 50 and receive a reduced benefit
(i.e., ½ percent for each month under 55). The monthly benefit of a Tier 2 firefighter shall be increased
annually at age 60 on the January 1st after the firefighter retires, or the first anniversary of the pension
starting date, whichever is later. Noncompounding increases occur annually, each January thereafter.
The increase is the lesser of 3 percent or ½ of the change in the Consumer Price Index for the
proceeding calendar year.
Contributions. Covered employees are required to contribute 9.455% of their base salary to the
Firefighters’ Pension Plan. If an employee leaves covered employment with less than 20 years of service,
accumulated employee contributions may be refunded without accumulated interest. The Village is
required to contribute the remaining amounts necessary to finance the plan and the administrative costs as
actuarially determined by an enrolled actuary. However, effective January 1, 2011, ILCS requires the
Village to contribute a minimum amount annually calculated using the projected unit credit actuarial cost
method that will result in the funding of 90% of the past service cost by the year 2040. For the year-ended
December 31, 2020, the Village’s contribution was 34.28% of covered payroll.
Concentrations. At year end, the Pension Plan does not have any investments (other than investments
issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external
investment pools, and other pooled investments) in any one organization that represent 5 percent or more
of net position available for benefits.
98
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Firefighters’ Pension Plan – Continued
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation performed, as of December 31,
2020, using the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age
Normal
Asset Valuation Method Market
Actuarial Assumptions
Interest Rate 7.00%
Salary Increases Graded by Years of Service
Cost of Living Adjustments 3.25%
Mortality rates were based on the PubS-2010(A) adjusted for plan status, collar, and Illinois Public
Pension data, as appropriate.
Discount Rate
The discount rate used to measure the total pension liability 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 the actuarially determined contribution rates and the member rate. Based on
those assumptions, the Fund’s fiduciary net position was projected to be available to make all project
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all period of projected benefit payments to determine the total
pension liability.
99
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Firefighters’ Pension Plan – Continued
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 as well as
what the Village’s net pension liability would be if it were calculated using a discount rate that is one
percentage point lower or one percentage point higher than the current rate:
Current
Discount Rate
(7.00%)
Net Pension Liability $ 25,529,577 12,274,978 1,522,854
1% Decrease 1% Increase
(6.00%)(8.00%)
Changes in the Net Pension Liability
Total
Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(A) (B) (A) - (B)
Balances at December 31, 2019 $ 86,352,802 68,032,109 18,320,693
Changes for the Year:
Service Cost 1,621,266 - 1,621,266
Interest on the Total Pension Liability 5,825,574 - 5,825,574
Changes of Benefit Terms - - -
Difference Between Expected and Actual
Experience of the Total Pension Liability (121,525)- (121,525)
Changes of Assumptions (453,769)- (453,769)
Contributions - Employer - 2,019,305 (2,019,305)
Contributions - Employees - 535,959 (535,959)
Net Investment Income - 10,436,145 (10,436,145)
Benefit Payments, including Refunds
of Employee Contributions (3,823,483) (3,823,483)-
Administrative Expense - (74,148) 74,148
Net Changes 3,048,063 9,093,778 (6,045,715)
Balances at December 31, 2020 89,400,865 77,125,887 12,274,978
100
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Firefighters’ Pension Plan – Continued
Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to
Pensions
For the year ended December 31, 2020, the Village recognized pension expense of $618,442. At
December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources Totals
Difference Between Expected and Actual Experience $ 1,200,307 (456,967) 743,340
Change in Assumptions 1,218,276 (631,966) 586,310
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - (6,680,755) (6,680,755)
Total Deferred Amounts Related to Firefighters' Pension 2,418,583 (7,769,688) (5,351,105)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense in future periods as follows:
Fiscal
Year
2021 $ (1,676,708)
2022 (913,453)
2023 (2,359,942)
2024 (897,176)
2025 260,345
Thereafter 235,829
Total (5,351,105)
Net Deferred
(Inflows)
of Resources
Outflows/
101
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
OTHER POST-EMPLOYMENT BENEFITS
General Information about the OPEB Plan
Plan Description. The Village’s defined benefit OPEB plan, Village of Buffalo Grove Retiree Benefits
Plan (RBP), provides OPEB for all permanent full-time general and public safety employees of the
Village. RBP is a single-employer defined benefit OPEB plan administered by the Village. Article 11 of
the State Compiled Statutes grants the authority to establish and amend the benefit terms and financing
requirements to the Village Board. No assets are accumulated in a trust that meets the criteria in
paragraph 4 of Statement 75.
Benefits Provided. RBP offers medical, prescription, vision, dental, life insurance coverage to retirees.
Retirees pay full cost of coverage. Coverage ends at age 65 or once retirees are eligible for Medicare.
Plan Membership. As of December 31, 2020, the measurement date, the following employees were
covered by the benefit terms:
Inactive Plan Members Currently Receiving Benefits 60
Inactive Plan Members Entitled to but not yet Receiving Benefits -
Active Plan Members 195
Total 255
Total OPEB Liability
The Village’s total OPEB liability was measured as of December 31, 2020, and was determined by an
actuarial valuation as of that date.
Actuarial assumptions and other inputs. The total OPEB liability in the December 31, 2020 actuarial
valuation was determined using the following actuarial assumptions and other inputs, applied to all
periods included in the measurement, unless otherwise specified:
102
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
OTHER POST-EMPLOYMENT BENEFITS – Continued
Total OPEB Liability – Continued
Actuarial assumptions and other inputs - Continued.
Inflation 2.25%
Salary Increases 3.00%
Discount Rate 2.00%
Healthcare Cost Trend Rates
Retirees' Share of Benefit-Related Costs 100% of Benefit-Related Costs
6.00% for 2020,decreasing to an ultimate rate
of 4.50% for 2024 and later years
The discount rate was based on a combination of the expected long-term rate of return on plan
investments and the municipal bond rate.
Mortality rates were based on the sex distinct raw rates as developed in the RP-2014 study, with blue
collar adjustment. These rates are improved generationally using MP-2020 improvement rates.
Change in the Total OPEB Liability
Balance at December 31, 2019 $ 11,379,814
Changes for the Year:
Service Cost 525,258
Interest on the Total Pension Liability 304,253
Changes of Benefit Terms -
Difference Between Expected and Actual Experience 1,668,331
Changes of Assumptions or Other Inputs 1,494,795
Benefit Payments (551,381)
Net Changes 3,441,256
Balance at December 31, 2020 14,821,070
Total
OPEB
Liability
103
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
OTHER POST-EMPLOYMENT BENEFITS – Continued
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The discount rate used to measure the total pension liability was 2.00%, while the prior valuation used
2.74%. The following presents the total OPEB liability, calculated using the discount rate, as well as
what the total OPEB liability would be if it were calculated using a discount rate that is one percentage
point lower or one percentage point higher:
Current
Discount Rate 1% Increase
(2.00%) (3.00%)
Total OPEB Liability $ 17,314,562 14,821,070 12,858,816
1% Decrease
(1.00%)
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following is a sensitivity analysis of the total OPEB liability to changes in the healthcare cost trend
rates. The table below presents the OPEB liability of the Village calculated using the discount rate as
well as what the Village’s total OPEB liability would be if it were calculated using healthcare trend
rates that are one percentage point lower or one percentage point higher than the current rates:
Healthcare
Cost Trend
Rates
(6.00% (7.00%
decreasing to decreasing to
4.50%) 5.50%)
Total OPEB Liability $ 12,589,522 14,821,070 17,732,162
3.50%)
(5.00%
decreasing to
104
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2020
NOTE 4 – OTHER INFORMATION – Continued
OTHER POST-EMPLOYMENT BENEFITS – Continued
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended December 31, 2020, the Village recognized OPEB expense of $1,308,656. At
December 31, 2020, the Village reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred
Inflows of
Resources Totals
Difference Between Expected and Actual Experience $ 1,490,601 - 1,490,601
Change in Assumptions 3,051,115 (535,675) 2,515,440
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - - -
Total Deferred Amounts Related to OPEB 4,541,716 (535,675) 4,006,041
Deferred
Outflows of
Resources
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Net Deferred
Fiscal Outflows
Year of Resources
2021 $ 479,145
2022 479,145
2023 479,145
2024 479,145
2025 479,145
Thereafter 1,610,316
Total 4,006,041
SUBSEQUENT EVENT
On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law. This act provides
$350 billion in funding for local governments. The Village has been allocated $5,002,946 to be
received in two installments. As of the date of these financial statements, the Village has not received
their first installment.
105
• Schedule of Employer Contributions
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters' Pension Fund
• Schedule of Changes in the Employer’s Net Pension Liability
Illinois Municipal Retirement Fund
Police Pension Fund
Firefighters' Pension Fund
• Schedule of Investment Returns
Police Pension Fund
Firefighters' Pension Fund
• Schedule of Changes in the Employer's Total OPEB Liability
Retiree Benefit Plan
• Budgetary Comparison Schedule
General Fund
Notes to the Required Supplementary Information
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information includes financial information and disclosures that are required by the
GASB but are not considered a part of the basic financial statements. Such information includes:
Budgetary Information –Budgets are adopted on a basis consistent with generally accepted accounting
principles.
VILLAGE OF BUFFALO GROVE, ILLINOIS
Illinois Municipal Retirement Fund
Required Supplementary Information
Schedule of Employer Contributions
December 31, 2020
Contributions as
Fiscal a Percentage of
Year Covered Payroll
2014 $1,020,544 $1,071,994 $51,450 $7,802,324 13.74%
2015 1,093,142 1,093,142 - 8,157,772 13.40%
2016 1,112,901 1,112,901 - 8,023,803 13.87%
2017 1,164,635 1,164,635 - 8,384,700 13.89%
2018 1,225,584 1,225,584 - 8,810,810 13.91%
2019 1,045,988 1,053,229 7,241 9,272,947 11.36%
2020 1,218,373 1,218,373 - 8,938,907 13.63%
Notes to the Required Supplementary Information:
Actuarial Cost Method Entry Age Normal
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 24 Years
Asset Valuation Method 5-Year Smoothed Market
Inflation 2.50%
Salary Increases 3.35% - 14.25%
Investment Rate of Return 7.50%
Retirement Age See the Notes to the Financial Statements
Mortality
Contributions
in Relation to
the Actuarially
Determined
Contribution
Covered
Payroll
Actuarially
Determined
Contribution
Contribution
Excess/
(Deficiency)
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
An IMRF specific mortality table was used with fully generational
projection scale MP-2017 (base year 2015).
106
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Required Supplementary Information
Schedule of Employer Contributions
December 31, 2020
Contributions as
Fiscal a Percentage of
Year Covered Payroll
2014 $2,359,777 $2,083,758 $(276,019)$5,984,178 34.82%
2015 2,256,676 2,284,315 27,639 6,056,962 37.71%
2016 2,407,865 2,430,017 22,152 6,406,672 37.93%
2017 2,538,183 2,641,453 103,270 6,565,793 40.23%
2018 2,673,256 2,668,632 (4,624)6,738,022 39.61%
2019 2,795,672 2,899,820 104,148 6,957,008 41.68%
2020 3,034,524 3,095,593 61,069 7,316,636 42.31%
Notes to the Required Supplementary Information:
Actuarial Cost Method Entry Age Normal
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 20 Years
Asset Valuation Method 5-Year Smoothed Market
Inflation 2.25%
Salary Increases Graded by Years of Service
Investment Rate of Return 7.00%
Retirement Age Graded by Age (11% at 50 to 100% at age 62)
Mortality
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
Contribution
Determined Excess/
Contribution (Deficiency)
Actuarially
Determined
Contribution
PubS-2010(A) Adjusted for Plan Status, Collar, and Illinois Public Pension
Data, as Appropriate
Contributions
in Relation to
the Actuarially
Payroll
Covered
107
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Required Supplementary Information
Schedule of Employer Contributions
December 31, 2020
Contributions as
Fiscal a Percentage of
Year Covered Payroll
2014 $1,884,815 $2,168,844 $284,029 $5,224,950 41.51%
2015 1,848,990 2,202,138 353,148 5,308,713 41.48%
2016 1,728,496 2,166,040 437,544 5,390,509 40.18%
2017 1,862,674 1,864,498 1,824 5,585,881 33.38%
2018 1,897,942 1,897,968 26 5,836,466 32.52%
2019 1,859,212 1,915,164 55,952 6,026,152 31.78%
2020 1,984,773 2,019,305 34,532 5,890,818 34.28%
Notes to the Required Supplementary Information:
Actuarial Cost Method Entry Age Normal
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 20 Years
Asset Valuation Method 5-Year Smoothed Market
Inflation 2.20%
Salary Increases Graded by Years of Service
Investment Rate of Return 7.00%
Retirement Age Graded by Age (11% at 50 to 100% at age 62)
Mortality
Contributions
in Relation to
Actuarially the Actuarially Contribution
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
Determined Determined Excess/Covered
Contribution Contribution (Deficiency)Payroll
PubS-2010(A) Adjusted for Plan Status, Collar, and Illinois Public Pension
Data, as Appropriate
108
VILLAGE OF BUFFALO GROVE, ILLINOIS
Illinois Municipal Retirement Fund
Required Supplementary Information
Schedule of Changes in the Employer's Net Pension Liability
December 31, 2020
Total Pension Liability
Service Cost $964,574
Interest 3,808,085
Differences Between Expected and Actual Experience (1,126,970)
Change of Assumptions 1,736,515
Benefit Payments, Including Refunds of Member Contributions (2,148,231)
Net Change in Total Pension Liability 3,233,973
Total Pension Liability - Beginning 51,366,296
Total Pension Liability - Ending 54,600,269
Plan Fiduciary Net Position
Contributions - Employer $1,071,994
Contributions - Members 369,278
Net Investment Income 2,892,087
Benefit Payments, Including Refunds of Member Contributions (2,148,231)
Other (Net Transfer)(1,146,370)
Net Change in Plan Fiduciary Net Position 1,038,758
Plan Net Position - Beginning 47,764,745
Plan Net Position - Ending 48,803,503
Employer's Net Pension Liability $5,796,766
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 89.38%
Covered Payroll $8,195,678
Employer's Net Pension Liability as a Percentage of Covered Payroll 70.73%
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
12/31/14
109
12/31/15 12/31/16 12/31/17 12/31/18 12/31/19
860,654 871,953 858,070 843,915 908,935
4,031,299 4,310,485 4,434,597 4,483,157 4,689,245
1,338,146 (921,372) 40,460 582,645 492,814
145,117 (220,386) (1,963,662) 1,849,878 -
(2,416,367) (2,582,301) (2,637,150) (2,792,678) (2,983,908)
3,958,849 1,458,379 732,315 4,966,917 3,107,086
54,600,269 58,559,118 60,017,497 60,749,812 65,716,729
58,559,118 60,017,497 60,749,812 65,716,729 68,823,815
1,093,142 1,112,901 1,164,635 1,218,342 1,053,229
402,168 428,936 377,312 394,144 421,491
241,715 3,350,903 8,949,122 (2,997,666) 10,038,062
(2,416,367) (2,582,301) (2,637,150) (2,792,678) (2,983,908)
520,582 (346,357) (974,388) 938,575 58,920
(158,760) 1,964,082 6,879,531 (3,239,283) 8,587,794
48,803,503 48,644,743 50,608,825 57,488,356 54,249,073
48,644,743 50,608,825 57,488,356 54,249,073 62,836,867
9,914,375 9,408,672 3,261,456 11,467,656 5,986,948
83.07%84.32%94.63%82.55%91.30%
8,157,772 8,023,803 8,384,700 8,758,756 9,272,947
121.53%117.26%38.90%130.93%64.56%
110
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Required Supplementary Information
Schedule of Changes in the Employer's Net Pension Liability
December 31, 2020
Total Pension Liability
Service Cost $1,415,171
Interest 5,318,732
Differences Between Expected and Actual Experience -
Change of Assumptions -
Change of Benefit Terms -
Benefit Payments, Including Refunds of Member Contributions (2,747,592)
Net Change in Total Pension Liability 3,986,311
Total Pension Liability - Beginning 77,355,682
Total Pension Liability - Ending 81,341,993
Plan Fiduciary Net Position
Contributions - Employer $2,083,758
Contributions - Members 654,693
Contributions - Other -
Net Investment Income 3,756,487
Benefit Payments, Including Refunds of Member Contributions (2,747,592)
Administrative Expense (33,343)
Net Change in Plan Fiduciary Net Position 3,714,003
Plan Net Position - Beginning 52,540,449
Plan Net Position - Ending 56,254,452
Employer's Net Pension Liability 25,087,541
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 69.16%
Covered Payroll $5,984,178
Employer's Net Pension Liability as a Percentage of Covered Payroll 419.23%
2014
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
111
2015 2016 2017 2018 2019 2020
1,386,660 1,534,051 1,637,139 1,628,794 1,649,198 1,978,338
5,438,273 5,861,687 6,171,179 6,489,093 6,772,474 7,214,313
(1,015,708) 358,140 353,405 (92,557) 1,380,756 832,348
4,811,344 170,816 (3,590,403) - 1,501,809 (639,813)
- - - - 425,172 -
(2,969,657) (3,283,543) (3,602,086) (3,803,918) (4,150,161) (4,677,746)
7,650,912 4,641,151 969,234 4,221,412 7,579,248 4,707,440
81,341,993 88,992,905 93,634,056 94,603,290 98,824,702 106,403,950
88,992,905 93,634,056 94,603,290 98,824,702 106,403,950 111,111,390
2,284,315 2,430,017 2,524,306 2,668,632 2,899,820 3,095,593
669,077 622,198 627,548 674,488 660,350 820,098
- - 117,147 28,742 83,945 -
186,635 3,418,114 8,300,527 (2,726,611) 13,161,796 8,491,232
(2,969,657) (3,283,543) (3,602,086) (3,803,919) (4,150,161) (4,677,746)
(39,870) (43,969) (62,733) (51,073) (59,767) (56,614)
130,500 3,142,817 7,904,709 (3,209,741) 12,595,983 7,672,563
56,254,452 56,384,952 59,527,769 67,432,478 64,222,737 76,818,720
56,384,952 59,527,769 67,432,478 64,222,737 76,818,720 84,491,283
32,607,953 34,106,287 27,170,812 34,601,965 29,585,230 26,620,107
63.36%63.57%71.28%64.99%72.20%76.04%
6,056,962 6,406,672 6,565,793 6,738,022 6,957,008 7,316,636
538.35%532.36%413.82%513.53%425.26%363.83%
112
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Required Supplementary Information
Schedule of Changes in the Employer's Net Pension Liability
December 31, 2020
Total Pension Liability
Service Cost $1,378,069
Interest 4,304,137
Differences Between Expected and Actual Experience 218,159
Change of Assumptions (938,734)
Change in Benefit Terms -
Benefit Payments, Including Refunds of Member Contributions (1,943,411)
Net Change in Total Pension Liability 3,018,220
Total Pension Liability - Beginning 62,459,374
Total Pension Liability - Ending 65,477,594
Plan Fiduciary Net Position
Contributions - Employer $2,168,844
Contributions - Members 502,014
Contributions - Other -
Net Investment Income 3,195,916
Benefit Payments, Including Refunds of Member Contributions (1,943,409)
Administrative Expense (42,368)
Net Change in Plan Fiduciary Net Position 3,880,997
Plan Net Position - Beginning 45,275,721
Plan Net Position - Ending 49,156,718
Employer's Net Pension Liability 16,320,876
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 75.07%
Covered Payroll $5,224,950
Employer's Net Pension Liability as a Percentage of Covered Payroll 312.36%
2014
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
113
2015 2016 2017 2018 2019 2020
1,179,270 1,260,242 1,348,459 1,325,255 1,264,639 1,621,266
4,508,473 4,757,917 4,961,836 5,226,040 5,477,561 5,825,574
(1,080,688) (133,067) 204,895 234,796 1,246,145 (121,525)
1,139,953 (588,791) - - 1,195,177 (453,769)
- - - - 640,951 -
(2,141,668) (2,225,410) (2,540,912) (2,940,773) (3,445,092) (3,823,483)
3,605,340 3,070,891 3,974,278 3,845,318 6,379,381 3,048,063
65,477,594 69,082,934 72,153,825 76,128,103 79,973,421 86,352,802
69,082,934 72,153,825 76,128,103 79,973,421 86,352,802 89,400,865
2,202,138 2,166,040 1,863,911 1,897,968 1,915,164 2,019,305
524,714 516,422 520,184 533,534 542,215 535,959
- - 588 - - -
654,625 3,415,513 7,601,179 (2,917,744) 11,064,141 10,436,145
(2,141,668) (2,225,410) (2,540,912) (2,940,773) (3,445,092) (3,823,483)
(48,363) (42,284) (60,925) (75,110) (104,664) (74,148)
1,191,446 3,830,281 7,384,025 (3,502,125) 9,971,764 9,093,778
49,156,718 50,348,164 54,178,445 61,562,470 58,060,345 68,032,109
50,348,164 54,178,445 61,562,470 58,060,345 68,032,109 77,125,887
18,734,770 17,975,380 14,565,633 21,913,076 18,320,693 12,274,978
72.88%75.09%80.87%72.60%78.78%86.27%
5,308,713 5,390,509 5,585,881 5,836,466 6,026,152 5,890,818
352.91%333.46%260.76%375.45%304.02%208.37%
114
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Required Supplementary Information
Schedule of Investment Returns
December 31, 2020
Annual Money-
Weighted Rate
of Return, Net
Fiscal of Investment
Year Expense
2014 7.00%
2015 0.67%
2016 5.71%
2017 14.38%
2018 (4.09%)
2019 20.58%
2020 11.06%
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
115
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Required Supplementary Information
Schedule of Investment Returns
December 31, 2020
Annual Money-
Weighted Rate
of Return, Net
Fiscal of Investment
Year Expense
2014 7.08%
2015 1.32%
2016 6.78%
2017 14.05%
2018 (4.77%)
2019 19.23%
2020 15.46%
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
116
VILLAGE OF BUFFALO GROVE, ILLINOIS
Retiree Benefit Plan
Required Supplementary Information
Schedule of Changes in the Employer's Total OPEB Liability
December 31, 2020
2019 2020
Total OPEB Liability
Service Cost $298,851 263,570 525,258
Interest 321,987 360,862 304,253
Changes in Benefit Terms - - -
Differences Between Expected and Actual Experience - - 1,668,331
Change of Assumptions or Other Inputs (774,109) 2,158,863 1,494,795
Benefit Payments (389,489) (409,592) (551,381)
Net Change in Total OPEB Liability (542,760) 2,373,703 3,441,256
Total OPEB Liability - Beginning 9,548,871 9,006,111 11,379,814
Total OPEB Liability - Ending 9,006,111 11,379,814 14,821,070
Covered Payroll $21,900,270 22,925,736 19,323,659
Total OPEB Liability as a Percentage of Covered Payroll 41.12%49.64%76.70%
Notes:
2018
This schedule is intended to show information for ten years. Information for additional years will be displayed
as it becomes available.
Changes of Assumptions.Changes in assumptions related to the discount rate were made in 2018, 2019 and
2020.
117
VILLAGE OF BUFFALO GROVE, ILLINOIS
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
Property Taxes $16,202,772 16,040,744 16,144,573
Other Taxes 10,310,000 8,283,100 8,970,163
Intergovernmental 12,348,247 11,894,557 15,107,505
Charges for Services 1,293,657 1,116,717 1,478,955
Licenses and Permits 349,600 239,600 301,321
Fines and Forfeitures 2,880,591 2,570,591 3,084,739
Interest 290,000 145,000 278,176
Miscellaneous 952,340 741,340 1,126,929
Total Revenues 44,627,207 41,031,649 46,492,361
Expenditures
Current
General Government 6,717,432 7,243,961 6,582,800
Public Safety 29,107,950 29,882,678 28,891,545
Public Works 8,253,126 7,530,691 6,973,359
Capital Outlay 70,000 70,000 222,871
Total Expenditures 44,148,508 44,727,330 42,670,575
Excess (Deficiency) of Revenues
Over (Under) Expenditures 478,699 (3,695,681)3,821,786
Other Financing Sources (Uses)
Transfers In 780,000 2,008,315 2,008,315
Transfers Out (1,228,394)(3,339,668)(3,209,874)
(448,394)(1,331,353)(1,201,559)
Net Change in Fund Balance 30,305 (5,027,034)2,620,227
Fund Balance - Beginning 27,898,251
Fund Balance - Ending 30,518,478
Budget
Original
118
Such statements and schedules include:
• Budgetary Comparison Schedules – Major Governmental Funds
• Combining Statements – Nonmajor Governmental Funds
• Budgetary Comparison Schedules – Nonmajor Governmental Funds
• Budgetary Comparison Schedules – Major Enterprise Funds
• Combining Statements – Nonmajor Enterprise Funds
• Budgetary Comparison Schedules – Nonmajor Enterprise Funds
• Combining Statements – Internal Service Funds
• Budgetary Comparison Schedules – Internal Service Funds
• Combining Statements – Pension Trust Funds
• Budgetary Comparison Schedules – Pension Trust Funds
• Consolidated Year-End Financial Report
OTHER SUPPLEMENTARY INFORMATION
Other supplementary information includes financial statements and schedules not required by the GASB, nor a
part of the basic financial statements, but are presented for purposes of additional analysis.
DEBT SERVICE FUND
The Local Motor Fuel Tax Fund is used to finance local road and street improvements from local gasoline tax
revenues collected and distributed by the State of Illinois.
Lake Cook Road TIF Fund
The Lake Cook Road TIF Fund is used to account for incremental revenues generated within the TIF boundaries
and costs incurred from the formation and redevelopment of the Village's Lake Cook Road Corridor.
INDIVIDUAL FUND SCHEDULES
GENERAL FUND
The General Fund is used to account for all financial resources except those required to be accounted for in
another fund.
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
fiduciary funds or capital projects funds) that are legally restricted to expenditure for specified purposes.
The Motor Fuel Tax Fund is used to account for expenditures related to approved motor fuel tax projects and
revenue from the state gasoline tax as collected and distributed by the State of Illinois.
The Metra Parking Lot fund is used to account for revenue generated and costs incurred from the operation of
the Metra parking lot operated by the Village.
The Debt Service Fund is used to account for monies restricted, committed or assigned to pay for principal and
interest payments on the Village’s debt obligations.
Motor Fuel Tax Fund
Metra Parking Lot Fund
Local Motor Fuel Tax Fund
Street Maintenance Fund
INDIVIDUAL FUND SCHEDULES
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private
business enterprises where the intent is that costs of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or where it has been decided that
periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital
maintenance, public policy, management control, accountability or other purpose.
Vehicle Equipment Replacement Fund
The Vehicle Equipment Replacement Fund is used to account for the purchase of vehicles and capital equipment
for the General Fund operating departments. Financing is typically provided by the General Fund committed
fund balance.
CAPITAL PROJECTS FUNDS
The Street Maintenance Fund is used to account for and reports financial resources that are restricted,
committed or assigned to expenditures for acquisition, construction, improvement, repair, and replacement of
the Village’s roadways.
The Capital Projects Funds are used to account for all resources used for the acquisition of capital assets except
those financed by Proprietary Funds.
Facilities Development Fund
The Facilities Development Fund is used to account for and reports financial resources that are restricted,
committed or assigned to expenditures for acquisition, construction, improvement, repair, and replacement of
the Village’s capital facilities.
Water and Sewerage Fund
The Water and Sewerage Fund is used to account for the revenue and expenses related to the operation of the
water and sewerage system.
Arboretum Golf Fund
The Arboretum Fund is used to account for the revenues and expenses related to the operation of the Arboretum
golf course.
The Buffalo Grove Golf Fund is used to account for revenue and expenses associated with operating the
Villages golf course.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing of goods or services provided by one department or
agency to other departments or agencies other governmental unit, or to other governmental units, on a cost-
reimbursement basis.
Information Technology Fund
Central Garage Fund
Building Maintenance Fund
The Building Maintenance Fund is used to account for providing a clean, healthy, and safe working
environment in Village facilities, meeting area’s and public area’s.
The Central Garage Fund is used to account for the activities required to operate and maintain the Village’s
automotive fleet. Department charges are derived from the work order process; which documents the type of
work performed and cost(s) associated with the work.
The Technology Fund is used to account for all costs associated with providing technology services to all
departments in the Village. This fund accounts for global technology costs, shared, and/or exclusive department
specific hardware, software, and other technology needs. Costs are assessed to each department by combining
the cost of all direct and indirect/shared services as incurred. The indirect/shared costs are charged back per the
user base of service(s).
INDIVIDUAL FUND SCHEDULES
Refuse Service Fund
The Refuse Fund is used to account for refuse services contracted by the Village for the benefit of its citizens by
a private entity. The fund is financed by the fees charged to residents by the private entity and remitted back to
the Village of Buffalo Grove.
Buffalo Grove Golf Fund
ENTERPRISE FUNDS - Continued
Firefighter's Pension Fund
Police Pension Fund
The Police Pension Fund is used to account for the resources necessary to provide retirement and disability
pension benefits to full-time sworn police personnel. Although this is a single-employer pension plan, the
defined benefits and employer and employee contribution levels are governed by Illinois Compiled Statutes (40
ILCS 5/3-1) and may be amended only by the Illinois legislature. Financing is provided by the Village
contributions, employee payroll withholdings, and investment income.
The Firefighters’Pension Fund is used to account for the accumulation of resources to be used for retirement
annuity payments to employees on the fire department at appropriate amounts and times in the future. Resources
are contributed by employees at rates fixed by law and by the Village at amounts determined by an annual
actuarial study.
TRUST AND CUSTODIAL FUNDS
PENSION TRUST FUNDS
INDIVIDUAL FUND SCHEDULES
VILLAGE OF BUFFALO GROVE, ILLINOIS
Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
Taxes
Property Taxes $912,769 898,460 890,789
Interest - - 27,190
Total Revenues 912,769 898,460 917,979
Expenditures
Debt Service
Principal Retirement 1,285,000 1,300,000 1,299,030
Interest and Fiscal Charges 301,369 1,205,000 1,196,044
Total Expenditures 1,586,369 2,505,000 2,495,074
Excess (Deficiency) of Revenues
Over (Under) Expenditures (673,600)(1,606,540)(1,577,095)
Other Financing Sources (Uses)
Debt Issuance - 26,382,646 24,000,000
Premium on Debt Issuance - - 2,720,164
Transfers In 673,600 1,262,650 1,262,650
Transfers Out - (9,577,055)(9,577,055)
673,600 18,068,241 18,405,759
Net Change in Fund Balance - 16,461,701 16,828,664
Fund Balance - Beginning 803
Fund Balance - Ending 16,829,467
Budget
Original
119
VILLAGE OF BUFFALO GROVE, ILLINOIS
Facilities Development - Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
None $- - -
Expenditures
Capital Outlay 375,000 520,000 511,270
Excess (Deficiency) of Revenues
Over (Under) Expenditures (375,000)(520,000)(511,270)
Other Financing Sources
Transfers In 375,000 550,000 550,000
Net Change in Fund Balance - 30,000 38,730
Fund Balance - Beginning 2,577
Fund Balance - Ending 41,307
Original
Budget
120
VILLAGE OF BUFFALO GROVE, ILLINOIS
Street Maintenance - Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
Intergovernmental $- 650,000 466,618
Miscellaneous - - 49,808
Total Revenues - 650,000 516,426
Expenditures
Capital Outlay 1,600,000 7,514,000 7,505,067
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,600,000)(6,864,000)(6,988,641)
Other Financing Sources
Transfers In 1,600,000 6,971,962 6,971,962
Net Change in Fund Balance - 107,962 (16,679)
Fund Balance - Beginning 258,430
Fund Balance - Ending 241,751
Original
Budget
121
VILLAGE OF BUFFALO GROVE, ILLINOIS
Vehicle Equipment Replacement - Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
None $- - -
Expenditures
Capital Outlay - 1,339,000 1,332,255
Excess (Deficiency) of Revenues
Over (Under) Expenditures - (1,339,000)(1,332,255)
Other Financing Sources
Transfers In - 1,350,000 1,350,000
Net Change in Fund Balance - 11,000 17,745
Fund Balance - Beginning -
Fund Balance - Ending 17,745
Original
Budget
122
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2020
Local Lake Metra
Motor Cook Parking
Fuel Tax Road TIF Lot Totals
Cash and Investments $2,611,924 221,550 72,959 43,646 2,950,079
Receivables - Net of Allowances
Other 137,752 - - - 137,752
Total Assets 2,749,676 221,550 72,959 43,646 3,087,831
Accounts Payable - - 6,185 1,576 7,761
Due to Other Funds - - 66,774 - 66,774
Total Liabilities - - 72,959 1,576 74,535
Restricted 2,749,676 221,550 - 42,070 3,013,296
Total Liabilities and Fund Balances 2,749,676 221,550 72,959 43,646 3,087,831
Special Revenue
FUND BALANCES
Motor
Fuel
Tax
ASSETS
LIABILITIES
123
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Fiscal Year Ended December 31, 2020
Local Lake Metra
Motor Cook Parking
Fuel Tax Road TIF Lot Totals
Revenues
Intergovernmental $2,421,678 421,550 - - 2,843,228
Charges for Services - - - 302 302
Fines and Forfeitures - - - 52,600 52,600
Total Revenues 2,421,678 421,550 - 52,902 2,896,130
Expenditures
Current
General Government - - 72,959 178,284 251,243
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,421,678 421,550 (72,959)(125,382)2,644,887
Other Financing Sources (Uses)
Transfers In - - 72,959 130,000 202,959
Transfers Out (988,315)(200,000)- - (1,188,315)
(988,315)(200,000)72,959 130,000 (985,356)
Net Change in Fund Balances 1,433,363 221,550 - 4,618 1,659,531
Fund Balances - Beginning 1,316,313 - - 37,452 1,353,765
Fund Balances - Ending 2,749,676 221,550 - 42,070 3,013,296
Motor
Fuel
Tax
Special Revenue
124
VILLAGE OF BUFFALO GROVE, ILLINOIS
Motor Fuel Tax - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
Intergovernmental
Motor Fuel Tax $1,600,000 1,600,000 885,648
Grants - - 1,536,030
Total Revenue 1,600,000 1,600,000 2,421,678
Expenditures
Current
Public Works 1,600,000 - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 1,600,000 2,421,678
Other Financing (Uses)
Transfers Out - (988,315)(988,315)
Net Change in Fund Balance - 611,685 1,433,363
Fund Balance - Beginning 1,316,313
Fund Balance - Ending 2,749,676
Original
Budget
125
VILLAGE OF BUFFALO GROVE, ILLINOIS
Local Motor Fuel Tax - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
Intergovernmental
Local Motor Fuel Tax $- 400,000 421,550
Expenditures
None - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures - 400,000 421,550
Other Financing (Uses)
Transfers Out - (200,000)(200,000)
Net Change in Fund Balance - 200,000 221,550
Fund Balance - Beginning -
Fund Balance - Ending 221,550
Original
Budget
126
VILLAGE OF BUFFALO GROVE, ILLINOIS
Lake Cook Road TIF - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
None $- - -
Expenditures
Current
General Government -72,959 72,959
Excess (Deficiency) of Revenues
Over (Under) Expenditures -(72,959)(72,959)
Other Financing Sources
Transfers In -72,959 72,959
Net Change in Fund Balance - - -
Fund Balance - Beginning -
Fund Balance - Ending -
Original
Budget
127
VILLAGE OF BUFFALO GROVE, ILLINOIS
Metra Parking Lot - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Revenues
Charges for Services $950 950 302
Fines and Forfeitures 215,000 215,000 52,600
Total Revenues 215,950 215,950 52,902
Expenditures
Current
General Government 202,654 202,654 178,284
Excess (Deficiency) of Revenues
Over (Under) Expenditures 13,296 13,296 (125,382)
Other Financing Sources (Uses)
Transfers In - 130,000 130,000
Transfers Out (12,000)(12,000)-
(12,000)118,000 130,000
Net Change in Fund Balance 1,296 131,296 4,618
Fund Balance - Beginning 37,452
Fund Balance - Ending 42,070
Budget
Original
128
VILLAGE OF BUFFALO GROVE, ILLINOIS
Water and Sewerage - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Charges for Services
Water and Sewer Charges $12,219,500 14,715,942 14,293,950
Connection and Recapture Fees 106,000 106,000 295,495
Miscellaneous - - 36,204
Total Operating Revenues 12,325,500 14,821,942 14,625,649
Operating Expenses
Operations
Water 2,519,165 2,519,165 1,830,642
Sewer 4,450,127 4,450,127 4,209,727
Water Purchases 1,725,000 1,725,000 1,756,594
Capital Outlay 3,085,544 8,881,934 3,978,875
Total Operating Expenses 11,779,836 17,576,226 11,775,838
Operating Income (Loss)545,664 (2,754,284)2,849,811
Nonoperating Revenue (Expenses)
Interest Income 60,500 60,500 472,703
Interest Expense (137,921)(137,921)(144,957)
(77,421)(77,421)327,746
Income (Loss) Before Contributions and Transfers 468,243 (2,831,705)3,177,557
Capital Contributions - - 341,254
Transfers In - 3,553,408 3,553,408
Transfers Out (960,000)(1,549,050)(1,549,050)
(960,000)2,004,358 2,345,612
Income (Loss) Before GAAP Adjustments (491,757)(827,347)5,523,169
Beginning Net Position - Budgetary Basis (437,356)
Ending Net Position - Budgetary Basis 5,085,813
Original
Budget
129
VILLAGE OF BUFFALO GROVE, ILLINOIS
Water and Sewerage - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Income (Loss) Before GAAP Adjustments $(491,757)(827,347)5,523,169
GAAP Adjustments
Capitalized Assets - - 3,120,407
Depreciation - - (1,574,640)
- - 1,545,767
Change in Net Position 468,243 (2,831,705)7,068,936
Net Position - Beginning 40,299,993
Net Position - Ending 47,368,929
Original
Budget
130
VILLAGE OF BUFFALO GROVE, ILLINOIS
Arboretum Golf - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Charges for Services
Daily Greens Fee and Membership $816,000 816,000 967,257
Merchandise Sales 56,160 56,160 56,819
Cart, Club and Other Rentals 224,400 224,400 237,986
Miscellaneous 53,500 53,500 31,361
Total Operating Revenues 1,150,060 1,150,060 1,293,423
Operating Expenses
Operations
Golf Operations 1,234,830 1,234,830 1,263,535
Cost of Sales - Pro Shop 45,000 45,000 40,422
Total Operating Expenses 1,279,830 1,279,830 1,303,957
(Loss) Before Transfers (129,770)(129,770)(10,534)
Transfers In 129,794 129,794 -
Income Before GAAP Adjustments 24 24 (10,534)
Beginning Net Position - Budgetary Basis 896,252
Ending Net Position - Budgetary Basis 885,718
Original
Budget
131
VILLAGE OF BUFFALO GROVE, ILLINOIS
Arboretum Golf - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Income Before GAAP Adjustments $24 24 (10,534)
GAAP Adjustments
Depreciation - - (281,201)
Change in Net Position 24 24 (291,735)
Net Position - Beginning 6,423,986
Net Position - Ending 6,132,251
Original
Budget
132
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Net Position
December 31, 2020
Refuse
Service Totals
ASSETS
Current Assets
Cash and Investments $200,151 180,515 380,666
Inventories 26,408 - 26,408
Total Current Assets 226,559 180,515 407,074
Noncurrent Assets
Capital Assets
Nondepreciable 978,776 - 978,776
Depreciable 3,236,208 - 3,236,208
Accumulated Depreciation (2,568,930)- (2,568,930)
Total Noncurrent Assets 1,646,054 - 1,646,054
Total Assets 1,872,613 180,515 2,053,128
Deferred Items - IMRF 25,601 - 25,601
Deferred Items - RBP 28,593 - 28,593
Total Deferred Outflows of Resources 54,194 - 54,194
Total Assets and Deferred Outflows of Resources 1,926,807 180,515 2,107,322
Buffalo Grove
Golf
DEFERRED OUTFLOWS OF RESOURCES
133
Refuse
Service Totals
LIABILITIES
Current Liabilities
Accounts Payable $16,313 14,930 31,243
Accrued Payroll 6,311 - 6,311
Deposit Payable 6,745 - 6,745
Compensated Absences Payable 8,852 - 8,852
Total Current Liabilities 38,221 14,930 53,151
Noncurrent Liabilities
Compensated Absences Payable 35,409 - 35,409
Net Pension Liability - IMRF 53,611 - 53,611
Total OPEB Liability - RBP 93,307 - 93,307
Total Noncurrent Liabilities 182,327 - 182,327
Total Liabilities 220,548 14,930 235,478
Deferred Items - IMRF 28,939 - 28,939
Deferred Items - RBP 3,372 - 3,372
Total Deferred Inflows of Resources 32,311 - 32,311
Total Liabilities and Deferred Inflow of Resources 252,859 14,930 267,789
Investment in Capital Assets 1,646,054 - 1,646,054
Unrestricted (Deficit)27,894 165,585 193,479
Total Net Position 1,673,948 165,585 1,839,533
Total Liabilities, Deferred Inflows of Resources,
and Net Position 1,926,807 180,515 2,107,322
NET POSITION
DEFERRED INFLOWS OF RESOURCES
Buffalo Grove
Golf
134
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Net Position
For the Fiscal Year Ended December 31, 2020
Refuse
Service Totals
Operating Revenues
Charges for Services $1,176,219 1,148,303 2,324,522
Operating Expenses
Operations
Golf Operations 973,939 - 973,939
Cost of Sales - Pro Shop 32,902 - 32,902
Refuse - 803,999 803,999
Depreciation 72,716 - 72,716
Total Operating Expenses 1,079,557 803,999 1,883,556
Income Before Transfers 96,662 344,304 440,966
Transfers Out - (375,000)(375,000)
Change in Net Position 96,662 (30,696)65,966
Net Position - Beginning 1,577,286 196,281 1,773,567
Net Position - Ending 1,673,948 165,585 1,839,533
Buffalo Grove
Golf
135
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2020
Refuse
Service Totals
Cash Flows from Operating Activities
Receipts from Customers and Users $1,168,773 1,148,303 2,317,076
Payments to Employees (282,270)- (282,270)
Payments to Suppliers (772,037)(857,824)(1,629,861)
114,466 290,479 404,945
Cash Flows from Noncapital Financing Activities
Transfers Out - (375,000)(375,000)
Net Change in Cash and Cash Equivalents 114,466 (84,521)29,945
Cash and Cash Equivalents - Beginning 85,685 265,036 350,721
Cash and Cash Equivalents - Ending 200,151 180,515 380,666
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income (Loss)96,662 344,304 440,966
Adjustments to Reconcile Operating Income to Net Income
to Net Cash Provided by (Used in) Operating Activities
Depreciation and Amortization Expense 72,716 - 72,716
Other Income (Expense)99,265 - 99,265
(Increase) Decrease in Current Assets (7,446)- (7,446)
Increase (Decrease) in Current Liabilities (146,731)(53,825)(200,556)
Net Cash Provided by Operating Activities 114,466 290,479 404,945
Buffalo Grove
Golf
136
VILLAGE OF BUFFALO GROVE, ILLINOIS
Buffalo Grove Golf - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Charges for Services
Daily Greens Fee and Membership $733,000 733,000 768,655
Merchandise Sales 73,700 73,700 63,951
Cart, Club and Other Rentals 271,050 271,050 231,517
Driving Range Fees 70,000 70,000 96,420
Miscellaneous 32,200 32,200 15,676
Total Operating Revenues 1,179,950 1,179,950 1,176,219
Operating Expenses
Operations
Golf Operations 1,039,775 1,039,775 973,939
Cost of Sales - Pro Shop 50,000 50,000 32,902
Capital Outlay 75,600 75,600 -
Total Operating Expenses 1,165,375 1,165,375 1,006,841
Income Before GAAP Adjustments 14,575 14,575 169,378
Beginning Net Position - Budgetary Basis 944,557
Ending Net Position - Budgetary Basis 1,113,935
Original
Budget
137
VILLAGE OF BUFFALO GROVE, ILLINOIS
Buffalo Grove Golf - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual - Continued
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Income Before GAAP Adjustments $14,575 14,575 169,378
GAAP Adjustments
Depreciation - - (72,716)
Change in Net Position 14,575 14,575 96,662
Net Position - Beginning 1,577,286
Net Position - Ending 1,673,948
Original
Budget
138
VILLAGE OF BUFFALO GROVE, ILLINOIS
Refuse Service - Enterprise Fund
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Charges for Services
SWANCC User Fees $1,060,000 1,060,000 1,148,303
Operating Expenses
Operations
Refuse 870,000 870,000 803,999
Income Before Transfers 190,000 190,000 344,304
Transfers Out (375,000)(375,000)(375,000)
Change in Net Position (185,000)(185,000)(30,696)
Net Position - Beginning 196,281
Net Position - Ending 165,585
Original
Budget
139
VILLAGE OF BUFFALO GROVE, ILLINOIS
Internal Service Funds
Combining Statement of Net Position
December 31, 2020
Central Building
Garage Maintenance Totals
Current Assets
Cash and Investments $177,617 113,502 233,921 525,040
LIABILITIES
Current Liabilities
Accounts Payable 176,827 89,382 203,804 470,013
Accrued Payroll - 19,027 22,859 41,886
Total Liabilities 176,827 108,409 226,663 511,899
Unrestricted 790 5,093 7,258 13,141
Total Liabilities and Net Position 177,617 113,502 233,921 525,040
Information
ASSETS
NET POSITION
Technology
140
VILLAGE OF BUFFALO GROVE, ILLINOIS
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position
For the Fiscal Year Ended December 31, 2020
Central Building
Garage Maintenance Totals
Operating Revenues
Interfund Services $1,871,458 2,139,433 1,739,428 5,750,319
Operating Expenses
Operations
Information Technology 1,871,458 - - 1,871,458
Central Garage - 2,139,433 - 2,139,433
Building Maintenance - - 1,739,428 1,739,428
Total Operating Expenses 1,871,458 2,139,433 1,739,428 5,750,319
Change in Net Position - - - -
Net Position - Beginning 790 5,093 7,258 13,141
Net Position - Ending 790 5,093 7,258 13,141
Information
Technology
141
VILLAGE OF BUFFALO GROVE, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2020
Central Building
Garage Maintenance Totals
Cash Flows from Operating Activities
Interfund Services Provided $1,871,458 2,139,433 1,739,428 5,750,319
Payments to Suppliers (1,820,843)(1,670,893)(1,144,895)(4,636,631)
Payments to Employees - (551,350)(452,263)(1,003,613)
50,615 (82,810)142,270 110,075
Cash and Cash Equivalents - Beginning 127,002 196,312 91,651 414,965
Cash and Cash Equivalents - Ending 177,617 113,502 233,921 525,040
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income - - - -
Adjustments to Reconcile Operating Income
to Net Cash Provided by (Used in)
Operating Activities
Increase (Decrease) in Current
Liabilities 50,615 (82,810)142,270 110,075
Net Cash Provided by Operating Activities 50,615 (82,810)142,270 110,075
Technology
Information
142
VILLAGE OF BUFFALO GROVE, ILLINOIS
Information Technology - Internal Service Fund
Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Interfund Services $1,819,152 1,949,152 1,871,458
Operating Expenses
Operations
Information Technology 1,819,152 1,949,152 1,871,458
Change in Net Position - - -
Net Position - Beginning 790
Net Position - Ending 790
Original
Budget
143
VILLAGE OF BUFFALO GROVE, ILLINOIS
Central Garage - Internal Service Fund
Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Interfund Services $1,788,935 2,470,192 2,139,433
Operating Expenses
Operations
Central Garage 1,788,935 2,470,192 2,139,433
Change in Net Position - - -
Net Position - Beginning 5,093
Net Position - Ending 5,093
Original
Budget
144
VILLAGE OF BUFFALO GROVE, ILLINOIS
Building Maintenance - Internal Service Fund
Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Operating Revenues
Interfund Services $1,755,455 1,755,455 1,739,428
Operating Expenses
Operations
Building Maintenance 1,755,455 1,755,455 1,739,428
Change in Net Position - - -
Net Position - Beginning 7,258
Net Position - Ending 7,258
Original
Budget
145
VILLAGE OF BUFFALO GROVE, ILLINOIS
Pension Trust Funds
Combining Statement of Fiduciary Net Position
December 31, 2020
Firefighters'
Pension Totals
Cash and Cash Equivalents $4,291,646 2,481,332 6,772,978
Investments
U.S. Treasury Obligations 4,804,948 2,751,255 7,556,203
U.S. Agency Obligations 7,803,370 13,856,130 21,659,500
Corporate Bonds 12,515,277 5,113,802 17,629,079
State and Local Obligations - 2,728,349 2,728,349
Mutual Funds 9,356,385 50,045,698 59,402,083
Equity Securities 45,689,083 - 45,689,083
Receivables - Net of Allowance
Accrued Interest 107,946 138,333 246,279
Due from Other Funds 55,236 36,015 91,251
Total Assets 84,623,891 77,150,914 161,774,805
Accounts Payable 47,979 25,027 73,006
Due to Other Funds 84,629 - 84,629
Total Liabilities 132,608 25,027 157,635
Net Position Restricted for Pensions 84,491,283 77,125,887 161,617,170
Pension
ASSETS
LIABILITIES
NET POSITION
Police
146
VILLAGE OF BUFFALO GROVE, ILLINOIS
Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended December 31, 2020
Police Firefighters'
Pension Pension Totals
Additions
Contributions - Employer $3,095,593 2,019,305 5,114,898
Contributions - Plan Members 820,098 535,959 1,356,057
Total Contributions 3,915,691 2,555,264 6,470,955
Investment Income
Interest Earned 1,384,182 1,807,729 3,191,911
Net Change in Fair Value 7,286,235 8,730,408 16,016,643
8,670,417 10,538,137 19,208,554
Less Investment Expenses (179,185)(101,992)(281,177)
Net Investment Income 8,491,232 10,436,145 18,927,377
Total Additions 12,406,923 12,991,409 25,398,332
Deductions
Administration 56,614 74,148 130,762
Benefits and Refunds 4,677,746 3,823,483 8,501,229
Total Deductions 4,734,360 3,897,631 8,631,991
Change in Fiduciary Net Position 7,672,563 9,093,778 16,766,341
Net Position Restricted for Pensions
Beginning 76,818,720 68,032,109 144,850,829
Ending 84,491,283 77,125,887 161,617,170
147
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension - Pension Trust Fund
Schedule of Changes in Fiduciary Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Additions
Contributions - Employer $3,125,296 3,125,296 3,095,593
Contributions - Plan Members 730,557 730,557 820,098
Total Contributions 3,855,853 3,855,853 3,915,691
Investment Income
Interest Earned 535,000 535,000 1,384,182
Net Change in Fair Value 3,059,500 3,059,500 7,286,235
3,594,500 3,594,500 8,670,417
Less Investment Expenses (250,000)(250,000)(179,185)
Net Investment Income 3,344,500 3,344,500 8,491,232
Total Additions 7,200,353 7,200,353 12,406,923
Deductions
Administration 65,000 65,000 56,614
Benefits and Refunds 4,377,313 4,377,313 4,677,746
Total Deductions 4,442,313 4,442,313 4,734,360
Change in Fiduciary Net Position 2,758,040 2,758,040 7,672,563
Net Position Restricted for Pensions
Beginning 76,818,720
Ending 84,491,283
Budget
Original
148
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension - Pension Trust Fund
Schedule of Changes in Fiduciary Net Position - Budget and Actual
For the Fiscal Year Ended December 31, 2020
Final
Budget Actual
Additions
Contributions - Employer $2,042,773 2,042,773 2,019,305
Contributions - Plan Members 545,365 545,365 535,959
Total Contributions 2,588,138 2,588,138 2,555,264
Investment Income
Interest Earned 374,500 374,500 1,807,729
Net Change in Fair Value 3,288,500 3,288,500 8,730,408
3,663,000 3,663,000 10,538,137
Less Investment Expenses (200,000)(200,000)(101,992)
Net Investment Income 3,463,000 3,463,000 10,436,145
Total Additions 6,051,138 6,051,138 12,991,409
Deductions
Administration 100,000 100,000 74,148
Benefits and Refunds 3,160,545 3,160,545 3,823,483
Total Deductions 3,260,545 3,260,545 3,897,631
Change in Fiduciary Net Position 2,790,593 2,790,593 9,093,778
Net Position Restricted for Pensions
Beginning 68,032,109
Ending 77,125,887
Original
Budget
149
VILLAGE OF BUFFALO GROVE, ILLINOIS
Consolidated Year-End Financial Report
December 31, 2020
CSFA #Program Name State Federal Other Totals
494-00-2554 Local - Federal COVID Relief Funding $- 1,369,327 - 1,369,327
494-00-1488 Motor Fuel Tax Program 1,188,315 - - 1,188,315
494-42-0495 Local Surface Transportation Program - 574,547 - 574,547
494-10-0343 State and Community Highway
Safety/National Priority Safety Program 7,595 14,223 - 21,818
Other Grant Programs and Activities - 923,288 9,500 932,788
All Other Costs Not Allocated - - 51,998,880 51,998,880
Totals 1,195,910 2,881,385 52,008,380 56,085,675
150
SUPPLEMENTAL SCHEDULES
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Bonds of 2012
December 31, 2020
Date of Issue August 27, 2012
Date of Maturity June 30, 2030
Authorized Issue $6,000,000
Denomination of Bonds $5,000
Interest Rates 2.00% - 2.75%
Interest Dates June 30 and December 30
Principal Maturity Date December 30
Payable at Amalgamated Bank of Chicago
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Fiscal
Year Interest Totals Jun. 30 Amount Dec. 30 Amount
2021 $415,000 131,525 546,525 2021 65,762 2021 65,763
2022 425,000 123,225 548,225 2022 61,612 2022 61,613
2023 440,000 114,725 554,725 2023 57,362 2023 57,363
2024 450,000 105,925 555,925 2024 52,962 2024 52,963
2025 470,000 96,925 566,925 2025 48,462 2025 48,463
2026 650,000 86,938 736,938 2026 43,469 2026 43,469
2027 650,000 72,313 722,313 2027 36,156 2027 36,157
2028 700,000 56,875 756,875 2028 28,437 2028 28,438
2029 750,000 39,375 789,375 2029 19,687 2029 19,688
2030 750,000 20,625 770,625 2030 10,312 2030 10,313
5,700,000 848,451 6,548,451 424,221 424,230
Requirements Interest Due on
Principal
151
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Bonds of 2016
December 31, 2020
Date of Issue May 3, 2016
Date of Maturity December 30, 2031
Authorized Issue $6,125,000
Denomination of Bonds $5,000
Interest Rates 2.00% - 3.00%
Interest Dates June 30 and December 30
Principal Maturity Date December 30
Payable at Amalgamated Bank of Chicago
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Fiscal
Year Interest Totals Jun. 30 Amount Dec. 30 Amount
2021 $300,000 83,231 383,231 2021 41,615 2021 41,616
2022 305,000 77,231 382,231 2022 38,615 2022 38,616
2023 310,000 71,131 381,131 2023 35,565 2023 35,566
2024 315,000 64,931 379,931 2024 32,465 2024 32,466
2025 325,000 58,631 383,631 2025 29,315 2025 29,316
2026 330,000 52,131 382,131 2026 26,065 2026 26,066
2027 335,000 45,531 380,531 2027 22,765 2027 22,766
2028 345,000 38,413 383,413 2028 19,206 2028 19,207
2029 350,000 30,650 380,650 2029 15,325 2029 15,325
2030 360,000 21,900 381,900 2030 10,950 2030 10,950
2031 370,000 11,100 381,100 2031 5,550 2031 5,550
3,645,000 554,880 4,199,880 277,436 277,444
Requirements Interest Due on
Principal
152
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Refunding Bonds of 2019
December 31, 2020
Date of Issue December 17, 2019
Date of Maturity December 30, 2025
Authorized Issue $1,449,275
Denomination of Bonds $5,000
Interest Rates 1.40% - 1.80%
Interest Dates June 30 and December 30
Principal Maturity Date December 30
Payable at Amalgamated Bank of Chicago
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Fiscal
Year Interest Totals Jun. 30 Amount Dec. 30 Amount
2021 $235,445 19,958 255,403 2021 9,979 2021 9,979
2022 240,990 16,426 257,416 2022 8,213 2022 8,213
2023 241,265 12,690 253,955 2023 6,345 2023 6,345
2024 246,365 8,710 255,075 2024 4,355 2024 4,355
2025 251,180 4,520 255,700 2025 2,260 2025 2,260
1,215,245 62,304 1,277,549 31,152 31,152
Requirements Interest Due on
Principal
153
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Bonds of 2020
December 31, 2020
Date of Issue May 20, 2020
Date of Maturity December 30, 2035
Authorized Issue $24,000,000
Denomination of Bonds $5,000
Interest Rates 3.00% - 5.00%
Interest Dates June 30 and December 30
Principal Maturity Date December 30
Payable at Amalgamated Bank of Chicago
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Fiscal
Year Interest Totals Jun. 30 Amount Dec. 30 Amount
2021 $1,600,000 963,900 2,563,900 2021 481,950 2021 481,950
2022 1,600,000 883,900 2,483,900 2022 441,950 2022 441,950
2023 1,600,000 803,900 2,403,900 2023 401,950 2023 401,950
2024 1,600,000 723,900 2,323,900 2024 361,950 2024 361,950
2025 1,600,000 643,900 2,243,900 2025 321,950 2025 321,950
2026 1,330,000 563,900 1,893,900 2026 281,950 2026 281,950
2027 1,400,000 497,400 1,897,400 2027 248,700 2027 248,700
2028 1,465,000 427,400 1,892,400 2028 213,700 2028 213,700
2029 1,540,000 354,150 1,894,150 2029 177,075 2029 177,075
2030 1,585,000 307,950 1,892,950 2030 153,975 2030 153,975
2031 1,635,000 260,400 1,895,400 2031 130,200 2031 130,200
2032 1,685,000 211,350 1,896,350 2032 105,675 2032 105,675
2033 1,735,000 160,800 1,895,800 2033 80,400 2033 80,400
2034 1,785,000 108,750 1,893,750 2034 54,375 2034 54,375
2035 1,840,000 55,200 1,895,200 2035 27,600 2035 27,600
24,000,000 6,966,800 30,966,800 3,483,400 3,483,400
Requirements Interest Due on
Principal
154
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
IEPA Loan Payable of 2013 - Pump Stations Improvements
December 31, 2020
Date of Issue November 20, 2013
Date of Maturity December 1, 2033
Authorized Issue $407,307
Interest Rate 2.295%
Interest Dates June 1 and December 1
Principal Maturity Date December 1
Payable at Illinois Environmental Protection Agency
Fiscal
Year Interest Totals
2021 $19,532 6,596 26,128
2022 19,983 6,145 26,128
2023 20,444 5,684 26,128
2024 20,916 5,212 26,128
2025 21,399 4,729 26,128
2026 21,893 4,235 26,128
2027 22,398 3,730 26,128
2028 22,915 3,213 26,128
2029 23,444 2,684 26,128
2030 23,985 2,143 26,128
2031 24,539 1,589 26,128
2032 25,105 1,023 26,128
2033 25,687 441 26,128
292,240 47,424 339,664
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Principal
155
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
Installment Note Payable of 2015
December 31, 2020
Date of Issue March 27, 2015
Date of Maturity June 1, 2029
Original Contract $6,970,999
Interest Rate 2.35%
Interest Dates Quarterly
Principal Maturity Date Quarterly
Payable at U.S. Bank National Association
Fiscal
Year Interest Totals
2021 $436,970 128,372 565,342
2022 490,763 117,611 608,374
2023 548,394 105,549 653,943
2024 610,091 92,095 702,186
2025 676,096 77,149 753,245
2026 746,659 60,610 807,269
2027 822,046 42,367 864,413
2028 902,537 22,304 924,841
2029 381,459 3,371 384,830
5,615,015 649,428 6,264,443
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Principal
156
These schedules contain trend information to help the reader understand how the Village’s financial
performance and well-being have changed over time.
STATISTICAL SECTION
(Unaudited)
This part of the 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 financial health.
Financial Trends
These schedules contain service and infrastructure data to help the reader understand how the information in the
Village’s financial report relates to the services the Village provides and the activities it performs.
Operating Information
Revenue Capacity
These schedules contain information to help the reader assess the Village’s most significant local revenue
Debt Capacity
These schedules present information to help the reader assess the affordability of the Village’s current levels of
outstanding debt and the Village’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment
within which the Village’s financial activities take place.
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Position by Component - Last Ten Fiscal Years*
2012**2013 2014
Governmental Activities
Net Investment in Capital Assets $53,362,147 52,096,183 51,011,919 50,712,982
Restricted 1,918,263 6,268,039 2,412,222 2,664,110
Unrestricted (Deficit)13,429,876 11,550,011 12,387,400 11,048,700
Total Governmental
Activities Net Position 68,710,286 69,914,233 65,811,541 64,425,792
Business-Type Activities
Net Investment in Capital Assets 37,807,146 36,706,161 35,553,648 35,871,503
Unrestricted 12,989,124 11,242,301 11,515,793 11,067,173
Total Business-Type
Activities Net Position 50,796,270 47,948,462 47,069,441 46,938,676
Primary Government
Net Investment in Capital Assets 91,169,293 88,802,344 86,565,567 86,584,485
Restricted 1,918,263 6,268,039 2,412,222 2,664,110
Unrestricted (Deficit)26,419,000 22,792,312 23,903,193 22,115,873
Total Primary Government
Net Position 119,506,556 117,862,695 112,880,982 111,364,468
* Accrual Basis of Accounting
** Auditors restated 2012, from 2011 and earlier have not been adjusted.
Data Source: Audited Financial Statements
December 31, 2020 (Unaudited)
*** Beginning in 2015, the Village implemented GASB 68 which resulted in the inclusion of
net pension liabilities.
2011
157
2015***2016 2017 2018 2019 2020
50,609,420 51,756,933 53,318,041 49,126,833 50,663,992 50,847,075
1,974,115 1,632,934 1,629,079 1,909,851 1,839,449 4,004,829
(34,637,401) (36,592,629) (36,022,097) (41,165,382) (40,174,356) (35,571,215)
17,946,134 16,797,238 18,925,023 9,871,302 12,329,085 19,280,689
38,372,943 35,494,070 36,802,425 36,831,535 37,080,189 38,677,933
7,770,059 11,034,826 10,837,462 11,296,427 11,417,357 16,662,780
46,143,002 46,528,896 47,639,887 48,127,962 48,497,546 55,340,713
88,982,363 87,251,003 90,120,466 85,958,368 87,744,181 89,525,008
1,974,115 1,632,934 1,629,079 1,909,851 1,839,449 4,004,829
(26,867,342) (25,557,803) (25,184,635) (29,868,955) (28,756,999) (18,908,435)
64,089,136 63,326,134 66,564,910 57,999,264 60,826,631 74,621,402
158
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0
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fund Balances of Governmental Funds - Last Ten Fiscal Years*
2012**2013 2014
General Fund
Nonspendable $1,031,936 518,437 562,399 573,812
Restricted - - 162,274 130,435
Committed 7,948,344 7,335,685 7,345,420 7,438,256
Unassigned 9,871,895 10,759,935 12,395,113 13,225,644
Total General Fund 18,852,175 18,614,057 20,465,206 21,368,147
All Other Governmental Funds
Restricted 1,918,263 6,112,703 1,796,997 1,965,328
Assigned 146,116 144,075 101,213 -
Committed - - - -
Unassigned (234,206) (253,826) (927,395) (2,324,296)
Total All Other
Governmental Funds 1,830,173 6,002,952 970,815 (358,968)
Total Governmental Funds 20,682,348 24,617,009 21,436,021 21,009,179
* Modified Accrual Basis of Accounting
**Auditors restated 2012, from 2011 and earlier have not been adjusted.
Data Source: Audited Financial Statements
December 31, 2020 (Unaudited)
2011
161
2015 2016 2017 2018 2019 2020
551,242 167,957 132,843 132,134 159,494 571,654
223,622 229,953 252,729 607,411 484,881 760,160
7,532,123 8,511,306 7,758,348 6,827,236 8,313,902 9,052,502
14,991,907 16,143,726 18,902,476 17,039,974 18,939,974 20,134,162
23,298,894 25,052,942 27,046,396 24,606,755 27,898,251 30,518,478
1,974,115 1,632,934 1,629,079 1,302,440 1,354,568 19,842,763
- - - - - -
- - - - 261,007 300,803
(3,707,560) (3,859,964) (3,714,759) (268,260) - -
(1,733,445) (2,227,030) (2,085,680) 1,034,180 1,615,575 20,143,566
21,565,449 22,825,912 24,960,716 25,640,935 29,513,826 50,662,044
162
VILLAGE OF BUFFALO GROVE, ILLINOIS
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years*
2012**2013 2014***
Revenues
Propety Taxes $14,458,248 14,330,407 14,504,750 14,554,564
Other Taxes 17,074,091 18,325,614 19,240,365 9,564,978
Licenses and Permits 280,139 275,434 294,622 207,312
Intergovernmental 1,060,719 1,011,949 997,371 11,081,081
Fines and Forteitures 1,404,308 1,283,956 1,647,364 1,803,317
Charges for Services 1,216,497 1,236,158 1,010,868 1,371,779
Investment Income 133,196 132,457 54,522 107,765
Miscellaneous 1,442,617 1,239,861 1,506,994 2,107,628
Total Revenues 37,069,815 37,835,836 39,256,856 40,798,424
Expenditures
Current
General Government 5,509,433 5,556,101 6,465,636 5,522,549
Public Safety 22,008,351 21,791,218 21,805,910 22,773,535
Public Works 8,256,079 9,865,723 12,178,705 10,878,278
Capital Outlay 1,510,924 1,561,904 1,347,276 2,018,451
Debt Service
Principal 1,055,000 920,000 940,000 790,000
Interest 248,539 285,420 385,395 313,665
Total Expenditures 38,588,326 39,980,366 43,122,922 42,296,478
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,518,511) (2,144,530) (3,866,066) (1,498,054)
Other Financing Sources (Uses)
Transfers In 1,891,354 2,621,132 2,119,313 2,552,288
Transfers Out (1,338,354) (1,985,632) (1,434,235) (1,481,564)
Sales of Capital Assets - - - 488
Auction Proceeds 52,538 45 - -
Bond Issued - 6,000,000 - -
Premium of Issuance of Debt - 91,669 - -
Transfer to Escrow Agent - - - -
Total Other Financing Sources (Uses)605,538 6,727,214 685,078 1,071,212
Net Change in Fund Balances (912,973) 4,582,684 (3,180,988) (426,842)
Debt Service as a Percentage
of Noncapital Expenditures 3.52%3.14%3.17%2.68%
* Modified Accrual Basis of Accounting
**Auditors restated 2012, from 2011 and earlier have not been adjusted.
***Beginning in 2014, state shared revenues have been recorded as intergovernmental revenues.
Data Source: Village Records
December 31, 2020 (Unaudited)
2011
163
2015 2016 2017 2018 2019 2020
14,742,622 15,034,583 15,510,127 15,980,771 16,321,876 17,035,362
9,712,718 9,701,271 9,816,523 10,494,959 9,835,616 8,970,163
1,330,769 326,177 1,763,982 344,389 362,747 301,321
1,931,512 11,843,812 3,043,453 12,623,735 14,074,544 18,417,351
350,042 3,025,628 330,475 2,820,773 3,121,111 3,137,339
12,271,219 1,504,400 11,709,919 1,600,263 1,695,784 1,479,257
25,061 65,600 153,816 292,340 807,330 305,366
1,404,841 1,610,746 1,456,876 1,884,579 2,694,331 1,176,737
41,768,784 43,112,217 43,785,171 46,041,809 48,913,339 50,822,896
5,084,772 5,693,142 5,774,748 6,804,142 6,293,156 6,834,043
25,237,115 27,407,019 25,776,184 26,732,460 27,561,835 28,891,545
8,092,735 6,978,307 8,101,888 8,710,363 7,341,611 6,973,359
2,828,194 8,252,604 1,362,213 1,502,272 3,689,375 9,571,463
510,000 525,000 1,275,000 1,315,000 1,210,000 1,299,030
296,747 371,456 401,609 370,202 325,743 1,196,044
42,049,563 49,227,528 42,691,642 45,434,439 46,421,720 54,765,484
(280,779) (6,115,311) 1,093,529 607,370 2,491,619 (3,942,588)
3,521,760 3,402,595 4,204,943 9,068,487 5,397,700 12,345,886
(2,686,312) (2,253,984) (3,192,426) (8,995,638) (4,171,708) (13,975,244)
1,601 1,385 28,758 - 163,085 -
- - - - - -
- 6,125,000 - - 1,449,275 24,000,000
- 100,778 - - - 2,720,164
- - - - (1,457,080) -
837,049 7,375,774 1,041,275 72,849 1,381,272 25,090,806
556,270 1,260,463 2,134,804 680,219 3,872,891 21,148,218
2.06%2.19%4.24%3.89%3.48%5.70%
164
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years
Tax
Levy
Year
2011 $1,338,206,375 $315,118,343 $10,706,904 $832,216 $
2012 1,223,424,081 296,910,564 10,221,534 617,198
2013 1,115,221,955 292,225,583 9,050,042 618,433
2014 1,120,788,463 294,457,084 9,119,150 696,091
2015 1,181,620,776 290,063,933 3,377,285 631,771
2016 1,299,550,777 310,452,203 3,611,330 636,718
2017 1,336,606,286 318,894,119 3,900,196 628,731
2018 1,347,695,708 334,731,537 4,684,958 653,520
2019 1,445,252,883 365,037,719 5,211,860 42,604
2020 1,426,077,134 *354,930,152 *5,900,081 *691,021 *
Note: Total Direct Tax Rate is weighted for both Cook and Lake Counties.
Data Source: Office of the Cook County Clerk/Office of the Lake County Clerk
* Cook County property class and assessed valuation is an estimate. Cook County information not yet
available.
December 31, 2020 (Unaudited)
Property Property Property Property
Residential Commercial Industrial Other
165
Estimated
Tax Rate Actual Taxable
for Lake County Value %
$1,664,863,838 $4,994,591,514 0.8520 33.333%
1,531,173,377 4,593,520,131 0.9290 33.333%
1,417,116,013 4,251,348,039 0.9830 33.333%
1,425,060,788 4,275,182,364 0.9930 33.333%
1,475,693,765 4,427,081,295 0.9550 33.333%
1,614,251,028 4,842,753,084 0.9210 33.333%
1,660,029,332 4,980,087,996 0.9080 33.333%
1,687,765,723 5,063,297,169 0.9070 33.333%
1,815,545,066 5,446,635,198 0.8905 33.333%
1,787,598,388 *5,362,795,164 0.9032 33.333%
Value Value
Estimated
Total Assessed Actual Taxable
166
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Property Tax Rates - Last Ten Tax LevyYears
2011 2012 2013
Direct Rate
Lake County
Village of Buffalo Grove 0.852 0.929 0.983
Cook County
Village of Buffalo Grove 0.886 1.030 1.211
Total 1.738 1.959 2.194
Overlapping Rate
Lake County
County, including Forest Preserve 0.755 0.820 0.881
Combined School Districts (102, 125, 532)6.158 6.779 7.068
Buffalo Grove Park District 0.452 0.511 0.537
Vernon Area Public Library 0.385 0.441 0.311
All Other (1)0.092 0.106 0.105
Cook County
County, including Forest Preserve 0.520 0.594 0.125
Metropolitan Water Reclamation District
of Greater Chicago 0.320 0.370 0.417
Combined School Districts (21, 214, 512)6.565 6.917 8.053
Buffalo Grove Park District 0.479 0.557 0.658
Indian Trails Public Library District 0.393 0.463 0.504
All other (2)0.107 0.187 0.129
Total (3)16.226 17.745 18.788
Notes:
Taxes Levied on a calendar year basis for collection in the subsequent year.
(1) Includes Road and Bridge and General Assistance for the Township herein.
N/A - Not Available
Data Source: Cook County Tax Extension/Lake County Tax Extension
December 31, 2020 (Unaudited)
The Village is home rule unit under the 1970 Illinois State Constitution and,as such, has
no statutory tax rate limitations.
(2) Includes Northwest Mosquito Abatement, Consolidated Elections, Road and Bridge,
and General Assistance for the Township herein.
(3) Representative tax rates for other government units are from Vernon Township Tax
Code 16-92, which the largest portion of the Village's 2019 EAV. Representative tax
rates for other government units are from Cook County Tax Code 38077, which
represents the largest portion of the Village's 2018 EAV within Cook County.
167
2014 2015 2016 2017 2018 2019 2020
0.993 0.955 0.921 0.908 0.907 0.890 0.903
1.235 1.316 1.138 0.969 1.210 1.136 N/A
2.228 2.271 2.059 1.877 2.117 2.026 0.903
0.893 0.871 0.825 0.809 0.794 0.776 0.780
7.164 7.034 6.680 6.634 6.665 6.459 6.754
0.553 0.517 0.492 0.482 0.480 0.465 0.478
0.317 0.308 0.293 0.291 0.294 0.293 0.304
0.113 0.110 0.104 0.099 0.096 0.091 0.093
0.126 0.621 0.596 0.558 N/A 0.513 N/A
0.430 0.426 0.406 0.402 N/A 0.389 N/A
8.657 8.989 7.909 8.010 N/A 7.450 N/A
0.677 0.714 0.606 0.641 N/A 0.584 N/A
0.529 0.534 0.476 0.481 N/A 0.446 N/A
0.094 0.130 0.073 0.108 N/A 0.100 N/A
19.553 20.254 18.460 18.515 8.328 17.565 N/A
168
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Property Tax Payers - Current Year and Nine Years Ago
Percentage Percentage
of Total Village of Total Village
Taxable Taxable
Assessed Assessed
Taxpayer Rank Value Rank Value
Chevy Chase Busniess Park Ltd $36,245,336 1 2.00%$32,419,958 1 1.95%
The Wheatlands, LLC 12,585,977 2 0.69%
BRI 1862 Riverwalk LLC (5)9,547,124 3 0.53%
Millbrook 9,504,994 4 0.52%10,526,585 4 0.63%
Resource Real Estate Inc 8,788,755 5 0.48%
Leider Lane Investors LLC 8,736,753 6 0.48%
Arthur J. Rogers and Co (4)8,470,984 7 0.47%8,994,528 6 0.54%
Riverwalk South LLC (2)6,747,740 8 0.37%8,388,778 7 0.50%
Woodman's Food Market Inc 6,442,584 9 0.35%
Inland Woodlands LLC 6,423,126 10 0.35%6,078,177 10 0.37%
Hamilton Partners (1)18,164,709 2 1.09%
Remax Consumer Plastics Inc 13,732,947 3 0.83%
Penobscot Management LLC (3)9,204,717 5 0.55%
Amli at Chevy Chase LP 6,427,630 8 0.39%
Aptakisic Creek Corporate Park 6,394,414 9 0.38%
113,493,373 6.25%120,332,443 7.23%
Data Source: Office of the County Clerk of Cook/Office of the County Clerk of Lake
Value Value
Note: Every effort was made to seek out and report the largest taxpayers. However, many of the taxpayers contain
multiple parcels, and it is possible that some parcels and their valuations have been overlooked.
December 31, 2020 (Unaudited)
2020 2011
Taxable Taxable
Assessed Assessed
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0
VILLAGE OF BUFFALO GROVE, ILLINOIS
Taxable Sales by Category - Last Ten Calendar Years
December 31, 2020 (Unaudited)
2012 2013
General Merchandise $18,514 17,526 10,105
Food 1,244,667 1,193,312 1,133,605
Drinking and Eating Places 921,617 997,738 1,025,547
Apparel 129,402 130,163 120,210
Furniture, Households and radio 378,836 437,774 463,678
Lumber, Building and Hardware 534,413 812,434 1,236,689
Automobile and Filling Stations 853,864 954,996 857,713
Drugs and Misc. Retail 1,982,824 1,847,550 1,915,937
Agriculture and All Others 1,193,620 1,347,303 1,572,248
Manufacturers 378,326 334,442 285,848
Totals 7,636,083 8,073,238 8,621,580
Total Number of Taxpayers 1,286 966 972
Village Direct Sales Tax rate 1.00%1.00%1.00%
Village Home Rule Tax rate 1.00%1.00%1.00%
*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
2011
Note: Blank Categories have less than four taxpayers; therefore, no data is
shown to protect the confidentiality of the individual taxpayers.
171
2014 2015 2016 2017 2018 2019 2020
9,098 66,228 86,125 - - - 66,754
1,080,556 1,552,983 1,481,195 1,557,474 1,836,131 2,419,704 2,485,816
1,023,545 1,062,206 1,118,330 1,107,878 1,133,048 1,203,642 987,063
104,229 94,538 92,409 68,075 66,797 167,211 57,933
356,095 521,007 369,583 380,907 1,250,788 1,294,886 1,482,689
1,666,708 1,879,818 2,074,008 2,357,551 2,202,029 2,119,185 2,267,449
947,278 918,216 867,250 1,007,356 1,068,115 1,089,620 848,373
2,349,469 1,790,381 1,986,578 1,568,024 1,536,061 1,481,357 1,515,668
1,693,506 2,313,502 2,231,299 2,573,323 2,470,229 2,484,560 2,303,808
270,063 351,808 220,927 200,727 180,646 213,851 170,291
9,500,547 10,550,687 10,527,704 10,821,315 11,743,844 12,474,017 12,185,844
974 1,043 1,022 1,036 1,036 987 902
1.00%1.00%1.00%1.00%1.00%1.00%1.00%
1.00%1.00%1.00%1.00%1.00%1.00%1.00%
172
State of
Village Village Illinois
Fiscal Direct Home Rule Sales Tax
Year Rate Rate Rate
2011 1.00%1.00%6.50%
2012 1.00%1.00%6.50%
2013 1.00%1.00%6.50%
2014 1.00%1.00%6.50%
2015 1.00%1.00%6.50%
2016 1.00%1.00%6.50%
2017 1.00%1.00%6.50%
2018 1.00%1.00%6.50%
2019 1.00%1.00%6.50%
2020 1.00%1.00%6.50%
Data Source: Illinois Department of Revenue
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years
December 31, 2020 (Unaudited)
173
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratios of Outstanding Debt By Type - Last Ten Fiscal Years
Fiscal
Year
2011 $7,200,000 $- $- $-
2012 12,280,000 - - -
2013 11,340,000 - 173,618 -
2014 10,730,503 - 400,519 -
2015 10,202,453 - 383,487 1,193,599
2016 15,881,408 - 366,060 6,894,447
2017 14,581,706 - 348,233 6,638,399
2018 13,243,707 - 329,993 6,341,869
2019 11,936,027 - 311,332 6,001,817
2020 37,350,765 - 292,240 5,615,015
Notes: Details of the Village's outstanding debt can be found in the Notes to Financial Statements.
Obligation Obligation IEPA Installment
General
(2) See the Schedule of Assessed Value and Actual Value of Taxable Property for equalized assessed valuation
data.
(1) See the Schedule of Demographic and Economic Statistics for personal income and population data.
December 31, 2020 (Unaudited)
General
Activities
Bonds Bonds Loan Note
Governmental
Business-Type Activities
174
Ratio of
Total
Outstanding Debt
Debt to Total Outstanding
Equalized Outstanding as a Percentage
Assessed Debt of Personal
Valuation (2)Per Capita (1)Income (1)
$7,200,000 0.14%171.79 0.39%
12,280,000 0.27%290.10 0.65%
11,513,618 0.27%275.59 0.61%
11,131,022 0.26%265.11 0.57%
11,779,539 0.27%283.82 0.61%
23,141,915 0.48%557.64 1.19%
21,568,338 0.43%523.17 1.11%
19,915,569 0.39%487.49 0.98%
18,249,176 0.34%450.66 0.84%
43,258,020 0.81%1068.26 2.00%
Government
Notes: Details of the Village's outstanding debt can be found in the Notes to Financial Statements.
Total
Primary
175
Percentage of
Total Taxable
Less: Amounts Assessed
Fiscal Available in Value of Per
Year Debt Service Total Property (1)Capita (2)
2011 $7,200,000 $- $7,200,000 0.14%$171.79
2012 12,280,000 - 12,280,000 0.27%290.10
2013 11,340,000 - 11,340,000 0.27%271.43
2014 10,730,503 - 10,730,503 0.25%255.57
2015 10,202,453 - 10,202,453 0.23%245.82
2016 15,881,408 - 15,881,408 0.33%382.68
2017 14,581,706 - 14,581,706 0.29%353.70
2018 13,243,707 - 13,243,707 0.26%324.18
2019 11,936,027 803 11,935,224 0.22%294.74
2020 37,350,765 231,373 37,119,392 0.69%916.66
(1) See the Schedule of Assessed Value and Actual Value of Taxable Property for property value data.
(2) See the Schedule of Demographic and Economic Statistics for population data.
Note: Details of the Village's outstanding debt can be found in the Notes to the Financial Statements.
Data Source: Village Records
Bonds
December 31, 2020 (Unaudited)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years
General
Obligation
176
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Direct and Overlapping Governmental Activities Debt
Percentage of
Debt
Applicable
Governmental Unit to Village (1)
Village $37,350,765 100.00%$37,350,765
Overlapping Debt
School Districts
Cook County School District #21 88,265,000 18.25%16,111,191
Kildeer Countryside Community Consolidated #96 - 38.78%-
Aptakisic-Tripp Community Consolidated #102 16,700,000 75.06%12,535,540
Lincolnshire-Half Day District #103 6,785,000 12.21%828,667
Adlai E. Stevenson H.S. District #125 37,245,000 38.21%14,232,027
Wheeling Township H.S. District #214 27,650,000 3.81%1,054,335
Harper Community College #512 254,770,000 1.78%4,534,925
College of Lake County #532 43,070,000 5.42%2,332,414
Total of School Districts 474,485,000 51,629,099
Other than School Districts
Lake County 147,785,000 5.16%7,620,547
Lake County Forest Preserve 206,810,000 5.16%10,664,176
Cook County 2,596,351,750 0.23%5,937,478
Cook County Forest Preserve 122,255,000 0.23%279,579
Metropolitan Water Reclamation District 2,181,154,590 0.23%5,075,027
Buffalo Grove Park District 11,663,000 95.69%11,160,113
Wheeling Park District 9,725,000 7.15%695,135
Total Other than School Districts 5,275,744,340 41,432,055
Total Direct and Overlapping Debt 5,313,095,105 93,061,154
Data Source: Cook County Tax Extension Department
Note: Overlapping governments are those that coincide,at least in part, with the geographic boudries 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 a debt, of each overlapping government.
December 31, 2020 (Unaudited)
Village's
Share of
Gross Debt Debt
(1) Determined by ratio of assessed valuation of property subject to taxation in the Village to valuation of
property subject to taxation in overlapping unit.
177
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Legal Debt Margin
December 31, 2020 (Unaudited)
The Village is a home rule municipality.
Article VII, Section 6(k) of the 1970 Illinois constitution governs computation of legal debt margin.
To date the General Assembly has set no limits for home rule municipalities.
The General Assembly may limit by law the amount and require referendum approval of debt to be
incurred by some home rule municipalities, payable from ad valorem property tax receipts, only in
excess of the following percentages of the assessed value of its taxable property...(2)if its
population is more than 25,000 and less than 500,000 an aggregate of one percent: indebtedness
which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter
approved by referendum...shall not be included in the foregoing percentage amounts.
178
VILLAGE OF BUFFALO GROVE, ILLINOIS
Demographic and Economic Statistics - Last Ten Fiscal Years
December 31, 2020 (Unaudited)
Per
Equalized Capita
Fiscal Assessed Personal Personal Per Capita Unemployment
Year Population Valuation EAV Income Income Rate
2011 41,911 E $1,664,431,364 $39,713 1,854,311,029 44,244 E 7.6%
2012 42,330 E 1,531,173,377 36,172 1,891,582,681 44,687 E 7.1%
2013 41,778 E 1,456,040,510 34,852 1,882,391,346 45,057 (1) 6.8%
2014 41,987 E 1,425,060,788 33,941 1,939,085,621 46,183 E 5.7%
2015 41,503 E 1,475,693,765 35,556 1,930,595,051 46,517 (1) 4.2%
2016 41,500 E 1,614,251,028 38,898 1,949,794,500 46,983 (2) 4.3%
2017 41,226 E 1,662,450,463 40,325 1,938,570,198 47,023 (2) 5.7%
2018 40,853 E 1,687,765,723 41,313 2,041,301,851 49,967 (2) 3.3%
2019 40,494 E 1,815,545,066 44,835 2,161,569,720 53,380 (2) 3.0%
2020 40,494 E 1,787,598,388 44,145 2,159,342,550 53,325 (2) 13.7%
E - Estimate (1) - US Census Website
(2) - Illinois Department of Employment Security
Data Source: U.S. Department of Labor, Bureau of Labor Statistics, U.S. Census Bureau
179
VILLAGE OF BUFFALO GROVE, ILLINOIS
Principal Employers - Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Village Village
Employer Rank Employment Rank Employment
Siemens Building Technologies 1,800 1 4.45%1,030 1 2.48%
I.S.I.1,200 2 2.96%
ESS 550 3 1.36%
Plexus Corp 370 4 0.91%370 5 0.89%
Veritas Document Solutions 300 5 0.74%
US LBM Holdings, LLC 250 6 0.62%
Village of Buffalo Grove 217 7 0.54%
ARxIUM 200 8 0.49%
Vapor Bus International 200 9 0.49%483 3 1.16%
Leica Microsystems Inc.200 9 0.49%
Rexam 573 2 1.38%
Dominick's Finer Foods (three locations)483 4 1.16%
Harris Trust & Savings Bank 371 6 0.89%
SMS-NA USA 354 7 0.85%
Baxter Global Technical Services 250 8 0.60%
Caremark 230 9 0.55%
ASAP Software 230 10 0.55%
5,287 13.06%4,374 10.51%
Data Source:
Sources: 2020 Illinois Manufacturing Directory
2020 Illinois Services Directory and a selective telephone survey
Employees Employees
December 31, 2020 (Unaudited)
2020 2011
180
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Village Government Employees by Function - Last Ten Fiscal Years
2012 2013
General Government
Administration
Village Managers Office 4.0 4.5 5.5
Information Technology 3.5 3.5 3.5
Human Resources 2.0 2.0 2.0
Finance 8.5 8.5 9.5
Community Development 10.0 10.0 10.0
Planning 1.5 1.5 1.5
Public Safety
Police
Full-Time Police Officers 69.0 69.0 64.0
Community Service Officers 3.0 3.0 3.0
Civilians 17.5 16.5 17.0
Fire
Full-time Firefighters/Paramedics 62.0 62.0 58.0
Civilians 6.0 3.5 3.5
Public Works
Public Works Administration 11.0 11.0 5.0
Streets/Forestry 20.0 20.0 18.5
Water/Sewer 13.0 13.0 8.0
Central garage 5.5 5.5 5.5
Building Maintenance 4.0 4.0 4.0
Recreation
Administration 13.5 13.5 18.0
Grounds Maintenance 15.0 15.0 16.0
Total 269.0 266.0 252.5
Recreation
Seasonal 34.0 34.0 30.0
Data Source: Village Finance Department
December 31, 2020 (Unaudited)
2011
181
2014 2015 2016 2017 2018 2019 2020
7.5 6.0 5.0 5.5 5.5 5.5 4.5
3.0 - - - - - -
2.0 2.0 2.0 2.0 2.0 2.0 2.0
10.0 8.0 9.0 9.0 9.0 8.0 9.0
9.5 12.0 12.0 14.0 15.0 13.0 13.0
1.5 - - - - - -
63.0 63.0 63.0 61.0 61.0 63.0 60.0
3.0 3.0 3.0 2.0 2.0 2.0 2.0
15.0 15.0 15.5 16.0 16.0 20.0 16.0
58.0 59.0 59.0 58.0 59.0 56.0 56.0
1.5 1.0 1.0 4.5 5.0 7.0 9.0
6.0 6.0 6.0 12.0 11.5 10.0 11.0
18.5 20.0 20.0 20.0 20.0 17.0 17.0
9.0 10.0 9.0 12.0 12.0 13.0 12.0
5.5 5.5 5.5 5.5 5.5 5.5 5.5
6.0 6.0 6.0 4.5 4.5 4.5 4.5
19.5 19.5 4.0 4.0 4.0 2.0 2.0
11.5 11.5 - - - - -
250.0 247.5 220.0 230.0 232.0 228.5 223.5
30.0 30.0 30.0 30.0 30.0 29.0 38.0
182
VILLAGE OF BUFFALO GROVE, ILLINOIS
Operating Indicators by Function/Program - Last Ten Fiscal Years
2012 2013
General Government
Building and Zoning
Building Permits Issued 1,930 2,206 2,651
Building Inspections Conducted 9,661 15,858 7,456
Property Maintenance Inspections Conducted 3,462 5,828 3,288
Public Safety
Police
Physical Arrests 820 671 759
Parking Violations 2,031 3,341 2,984
Traffic Violations 11,867 10,826 13,171
DUI Arrests 164 107 124
Vehicle Crashes 1,396 1,260 1,507
Fire
Ambulance Calls/EMS 2,568 2,789 2,613
Service Calls 1,053 487 483
Fire Calls 737 698 865
Auto Aid/Mutual Aid 676 680 654
Public Works
Streets
Street Resurfacing (Miles)2.90 5.51 10.84
Parks and Recreation
Park Sites 46 46 46
Golf Course - Combined
Golf Rounds Played - Paid 56,918 59,937 53,639
Water
New Connections (Tap ons)12 15 27
Average Daily Consumption (1)4.09 3.92 3.70
Peak Daily Consumption (1)7.84 7.93 6.20
(1) - Millions of Gallons
Data Source: Various Village Departments
December 31, 2020 (Unaudited)
2011
183
2014 2015 2016 2017 2018 2019 2020
2,833 2,582 2,957 2,567 2,502 3,443 2,697
7,074 11,625 9,053 6,692 6,817 7,361 5,540
3,172 1,894 2,160 1,954 1,902 2,254 1,856
886 809 521 441 452 406 283
3,634 3,766 5,754 6,781 5,748 3,404 2,185
8,349 7,969 6,054 5,310 6,054 4,844 3,439
154 97 74 87 85 74 54
1,429 363 1,473 1,294 1,353 1,459 829
3,385 3,123 3,160 3,201 3,145 3,145 3,276
1,245 340 309 293 309 409 249
821 1,585 1,279 1,082 1,257 1,253 1,096
1,063 1,055 987 1,045 967 1,193 1,198
3.28 2.45 11.40 2.76 0.97 2.64 4.97
46 46 46 46 46 46 46
54,689 68,602 53,599 51,138 48,770 44,000 58,297
9 23 19 3 23 11 23
3.58 3.39 3.60 3.23 3.49 3.13 3.33
5.40 5.14 5.54 5.98 5.69 4.83 4.97
184
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Asset Statistics by Function/Program - Last Ten Fiscal Years
2012 2013
Public Safety
Police
Stations 1 1 1
Vehicles 36 34 28
Fire
Stations 3 3 3
Vehicles*21 21 21
Public Works
Streets 117.70 117.70 117.70
Street (Miles)2,778 2,778 2,778
Streetlights
Water
Water Mains 180.25 180.25 180.30
Fire Hydrants 2,474 2,475 2,477
Wastewater
Sanitary Sewers 139.27 139.27 139.30
Data Source: Various Village Departments
* Includes fire engines/towers, ambulances, and staff cars
December 31, 2020 (Unaudited)
2011
185
2014 2015 2016 2017 2018 2019 2020
1 1 1 1 1 1 1
29 30 29 31 30 29 30
3 3 3 3 3 3 3
20 20 20 20 20 20 20
118.20 118.20 118.22 114.02 114.02 113.90 110.83
2,786 2,789 2,789 2,790 2,755 2,437 3,115
180.90 181.14 181.31 181.97 185.99 186.19 188.60
2,487 2,493 2,501 2,514 2,507 2,507 2,584
139.80 139.92 139.92 139.96 141.60 135.94 137.38
186