2021 CAFR
VILLAGE OF BUFFALO
GROVE, ILLINOIS
ANNUAL COMPREHENSIVE FINANCIAL
REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2021
VILLAGE OF BUFFALO GROVE, ILLINOIS
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2021
Prepared by:
Finance Department
Chris Black
Finance Director/Village Treasurer
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
TABLE OF CONTENTS
1
2
Letter of Transmittal 3
7
INDEPENDENT AUDITORS' REPORT 10
MANAGEMENT’S DISCUSSION AND ANALYSIS 14
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 32
Statement of Activities 34
Fund Financial Statements
Balance Sheet – Governmental Funds 36
Reconciliation of Total Governmental Fund Balance to the
Statement of Net Position – Governmental Activities 38
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances to the Statement of Activities – Governmental Activities 42
Statement of Net Position – Proprietary Funds 44
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds 46
Statement of Cash Flows – Proprietary 48
Statement of Fiduciary Net Position 50
Statement of Changes in Fiduciary Net Position 51
Notes to Financial Statements 52
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Employer Contributions
Illinois Municipal Retirement Fund 112
Police Pension Fund 113
Firefighters' Pension Fund 114
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 115
Police Pension Fund 117
Firefighters’ Pension Fund 119
Schedule of Investment Returns
Police Pension Fund 121
Firefighters’ Pension Fund 122
Schedule of Changes in the Employer's Total OPEB Liability
Retiree Benefit Plan 123
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
General Fund 124
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Debt Service Fund 130
Facilities Development - Capital Projects Fund 131
Street Maintenance - Capital Projects Fund 132
Vehicle Equipment Replacement - Capital Projects Fund 133
Combining Balance Sheet - Nonmajor Governmental Funds 134
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds 135
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Motor Fuel Tax - Special Revenue Fund 136
Local Motor Fuel Tax - Special Revenue Fund 137
Metra Parking Lot - Special Revenue Fund 138
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
Water and Sewerage - Enterprise Fund 139
Arboretum Golf - Enterprise Fund 141
Combing Statement of Net Position - Nonmajor Enterprise Funds 143
Combining Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Enterprise Funds 145
Combining Statement of Cash Flows - Nonmajor Enterprise Funds 146
Schedule of Revenues, Expenses and Changes in Net Position - Budget and Actual
Buffalo Grove Golf - Enterprise Fund 147
Refuse Service - Enterprise Fund 149
Combining Statement of Net Position - Internal Service Funds 150
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 151
Combining Statement of Cash Flows - Internal Service Funds 152
Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual
Information Technology - Internal Service Fund 153
Central Garage - Internal Service Fund 154
Building Maintenance - Internal Service Fund 155
Combining Statement of Fiduciary Net Position - Pension Trust Funds 156
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 157
Schedule of Changes in Fiduciary Net Position - Budget and Actual
Police Pension - Pension Trust Fund 158
Firefighter's Pension - Pension Trust Fund 159
Consolidated Year-End Financial Report 160
Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with
Governmental Auditing Standards 161
SUPPLEMENTAL SCHEDULES
Long-Term Debt Requirements
General Obligation Bonds of 2012 164
General Obligation Bonds of 2016 165
General Obligation Refunding Bonds of 2019 166
General Obligation Bonds of 2020 167
IEPA Loan Payable of 2013 - Pump Stations Improvements 168
Installment Note Payable of 2015 169
Net Position by Component – Last Ten Fiscal Years 172
Changes in Net Position – Last Ten Fiscal Years 174
Fund Balances of Governmental Funds – Last Ten Fiscal Years 176
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 178
Assessed Value and Actual Value of Taxable Property – Last Ten Tax Levy Years 180
Direct and Overlapping Property Tax Rates – Last Ten Tax Levy Years 182
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 184
Property Tax Levies and Collections – Last Ten Tax Levy Years 185
Taxable Sales by Category – Last Ten Calendar Years 186
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 188
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 190
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 192
Schedule of Direct and Overlapping Governmental Activities Debt 193
Schedule of Legal Debt Margin 194
Demographic and Economic Statistics – Last Ten Fiscal Years 195
Principal Employers – Current Fiscal Year and Nine Fiscal Years Ago 196
Full-Time Equivalent Government Employees by Function/Program –
Last Ten Fiscal Years 198
Operating Indicators by Function/Program – Last Ten Fiscal Years 200
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 202
STATISTICAL SECTION (Unaudited) - Continued
PAGE
VILLAGE OF BUFFALO GROVE, ILLINOIS
List of Principal Officials
December 31, 2021
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
Christopher Stilling Chris Black
Deputy Village Manager Finance Director/Village Treasurer
Steven Casstevens William Baker
Chief of Police Fire Chief
Michael Skibbe Arthur Malinowski
Deputy Village Manager/Public Works Director Human Resource Director
Darren Monico Nicole Woods
Village Engineer Director of Community Development
Geoff Tollefson Vacant
Golf Course Manager Building Commissioner
Brett Robinson
Administrative Services Director
1
ORGANIZATIONAL CHART
Residents of
Buffalo Grove
Village Board
Village Manager/
Deputy Village
Clerk
Deputy Village
Manager
Community
Development
Building and
Zoning
Environmental
Health
Planning & Econ
Development
Finance
General Services
Fire
Emergency
Medical
Services
Fire
Suppression
and Rescue
Fire
Prevention
&Education
Emergency
Management
Human
Resources
Legal
Deputy Village
Manger
Police
Patrol
Investigations
Traffic
Police Records
Communications Golf Operations Public
Works
Building
Maintenance
Central Garage
Engineering
Forestry &
Grounds
Sewer &
Drainage
Streets
Water
Administrative
Services
Purchasing
Information
Technology
Records
Management
2
July 11, 2022
The Honorable Beverly Sussman
Members of the Village Board
Citizens of the Village of Buffalo Grove
The Annual Comprehensive Financial Report of the Village of Buffalo Grove for the year ended December 31,
2021, is submitted herewith. This report represents a comprehensive picture of the Village’s financial activities
during Fiscal Year 2021 and the financial condition of its various funds at December 31, 2021. 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 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, 2021. 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 2020 U.S. Census, serves a population of 43,212. 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.
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 202 full-time and 28 part-time/seasonal positions in the Fiscal Year 2021 annual budget.
3
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, department and 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. As Buffalo Grove and the metro area approach the end of the
COVID-19 pandemic, the Village finds itself in a strong fiscal position due to proactive leadership at all levels
of the organization. The Village Board and staff team have taken deliberate action to carefully monitor and adjust
operating expenses while using more frequent projection methods to predict revenue trends. Additionally, the
Village continues to pursue options to diversify revenue streams and reduce long-term liabilities.
The Village is primarily residential, with supporting commercial activity and limited industrial and
manufacturing activity. There are approximately 889 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 3.8 percent besting the state by 2.3 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 $16,970,657 which is a slight decline from the previous year’s total of
$17,035,362, a decrease of 0.4 percent.
• Water and Sewer collections increased from $14,625,649 in 2020 to $16,326,679 in 2021; a total
increase of 11.6 percent.
• Sales taxes [net of rebates], both state shared and home rule, generated $16,013,176 in 2021, an increase
of 31.8 percent.
The Village equalized assessed valuation decreased by $30.8 million or 1.7 percent to $1.79 billion for the 2020
levy year. The Lake County portion of the Village’s equalized assessed value decreased by 2.2 percent and Cook
County portion grew by 0.23 percent.
4
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, 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, 2019 $18,939,974 $43,948,348 43.10%
December 31, 2020 $20,134,162 $44,657,330 45.09%
December 31, 2021 $22,485,209 $44,610,467 50.40%
* 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.
The Village is in year two of a five-year Infrastructure Modernization Program that involves 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 2021, the Village of Buffalo Grove issued nearly 3,400 commercial and residential building permits. These
permits represent a total project valuation of $127 million invested into the Buffalo Grove community. In
addition to building permit activity, the following major projects occurred in 2021:
Plans neared completion 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.
Work continued on the new Link Crossing Development by K. Hovnanian Homes. This project will have a total
of 187 units and include a mix of 68 clustered single-family detached homes and 119 two-story townhomes.
5
The Village approved plans for the redevelopment of an existing office building at 700 E. Lake Cook Road into
multiple uses including an 8,720 square foot convenience store, fuel center and car wash complex, 8,550 square
foot retail center, and a 2,400 square foot quick service restaurant.
In late 2021, the Village reviewed and approved a submission for the redevelopment and expansion of the
Speedway gas station and 4,600 square foot convenience store. Located at 201 N. Milwaukee, the project is
situated on approximately 3.5 acres of land and will service both personal and commercial vehicles.
Additionally, Lou Malnati’ Pizza announced it will consolidate its headquarters and move to 900 Busch Parkway.
The 125,000 square foot building will service as the company’s home office, e-commerce site and fulfillment
center.
Plans were approved for WJ Golf, the new tenant at the Arboretum Club, to renovate the building to offer indoor
year-round golf simulators and private lessons, in addition to a newly refurbished and managed full-service
dining and entertainment area.
In November 2021, the Village passed a Memorandum of Understanding with Kensington Development Partners
to redevelop the 20-acre Town Center property at Route 83 and Lake Cook Roads. The proposed redevelopment
is a new, modern central entertainment and residential district anchored by a national grocery store, retail shops,
a park, restaurants and luxury multi-family residential and includes 65,000 square feet of retail space. Project
costs are estimated to exceed $150 million.
In 2021, 53 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 Annual Comprehensive Financial Report for the fiscal
year ended December 31, 2020. This was the thirty-ninth 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 Annual Comprehensive 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 Annual
Comprehensive 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, 2021. 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. Credit also must be given to the Village President and Board of Trustees, and the
Village Manager Dane Bragg for their assistance in planning and conducting the fiscal affairs of the Village in a
responsible manner.
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 Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
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
8
INDEPENDENT AUDITORS’ REPORT
This section includes the opinion of the Village’s independent auditing firm.
9
INDEPENDENT AUDITOR'S REPORT
July 11, 2022
The Honorable Village President
Members of the Board of Trustees
Village of Buffalo Grove, Illinois
Opinions
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, 2021, and the related notes to the financial statements,
which collectively comprise the Village’s basic financial statements as listed in the table of contents.
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, as of December 31, 2021,
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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report. We are required to be independent of the
Village, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as
a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
10
Village of Buffalo Grove, Illinois
July 11, 2022
Page 2
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore
is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would influence the
judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and budgetary comparison information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information is the responsibility of
management and, 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.
11
Village of Buffalo Grove, Illinois
July 11, 2022
Page 3
Supplementary 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 other supplementary
information and supplemental schedules are (is) presented for purposes of additional analysis and are not
a required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
other supplementary information and supplemental schedules are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Lauterbach & Amen, LLP
LAUTERBACH & AMEN, LLP
12
MANAGEMENT’S DISCUSSION AND ANAYLSIS
13
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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, 2021. 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, and the Village’s financial statements,
which can be found in the basic financial statement section of this report.
Financial Highlights
• The assets and deferred outflows of the Village exceeded its liabilities and deferred inflows at
December 31, 2021 by $101.2 million (net position). The Net Position for governmental activities
is $36.7 million or 36.3 percent of the total, and business-type activities account for $64.5 million.
Of this amount, $0.6 million is unrestricted. Governmental activities unrestricted amount is ($19.6)
million at the end of the year. This negative amount of unrestricted assets is directly related to the
recognition of all retirement obligations in noncurrent liabilities, which is $44.6 million for 2021
(a decrease of $15.1 million or 33.9% from 2020).
• The Village’s total debt decreased by $3.0 million (or 7.4 percent). Total general bonded debt
outstanding is $32.0 million as of December 31, 2021. The General Fund transferred $0.7 million
from fund balance to the Capital Projects Fund.
• The Village’s net position increased by $25.1 million (or 33.0 percent) from a restated beginning
balance of $76.1 million during the fiscal year ending December 31, 2021. The governmental net
position increased by $16.7 million (83.5 percent) from a restated beginning balance of $20.0
million and the business-type activities net position increased by $8.4 million (15.0 percent) from
a restated beginning balance of $56.1 million.
• As of December 31, 2021, the Village of Buffalo Grove’s General Fund reported ending fund
balance of $38.3 million, an increase of $7.8 million from the prior year. Of this amount, $22.5
million was unassigned.
• Beginning net position was restated to reflect an error in recognition of capital assets for both the
governmental and business-type activities.
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.
14
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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).
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.
15
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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.
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 $101.2 million as of December 31, 2021. The largest portion of the Village’s net position reflects its net
investment in capital assets ($95.7 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 ($4.9 million) represents resources that are subject to external
restrictions on how they may be used, of that amount $3.8 million is restricted for improvements to roadway,
public infrastructure, and other municipal public improvements. The remaining balance of unrestricted net
position of $0.6 million includes ($19.6) million in governmental activities which reduces total net position
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 $19.5 million
(103.2 percent).
16
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The Village’s combined net position increased by $25.1 million as a result of governmental activities
increasing by $16.7 million and business-type activities increasing by $8.4 million. The net position of the
Village’s governmental fund was $36.7 million. The Village’s unrestricted net position for governmental
activities that are available for day-to-day financial operations were ($19.6) million compared to ($35.6)
million at December 31, 2020. The net position of business-type activities was $64.5 million. The business
type activities unrestricted net position increased by $3.5 million from the previous year.
2021 2020 2021 2020 2021 2020
Assets
Current / Other Assets $76.5 72.4 23.3 19.3 99.8 91.7
Capital Assets 78.0 71.6 49.8 44.6 127.8 116.2
Total Assets 154.5 144.0 73.1 63.9 227.6 207.9
Deferred Outflows 14.6 12.2 2.3 2.3 16.9 14.5
Total Assets/Deferred Outflows 169.1 156.2 75.4 66.2 244.5 222.4
Liabilities
Current Liabilities 8.3 7.5 2.2 1.4 10.5 8.9
Non-Current Liabilities 76.7 93.9 7.8 8.9 84.5 102.8
Total Liabilities 85.0 101.4 10.0 10.3 95.0 111.7
Deferred Infows 47.4 35.6 0.9 0.5 48.3 36.1
Total Liabilities/ Deferred Inflows 132.4 137.0 10.9 10.8 143.3 147.8
Net Position:
Net Investment in Capital Assets 51.4 50.8 44.3 38.7 95.7 89.5
Restricted 4.9 4.0 - - 4.9 4.0
Unrestricted (19.6) (35.6) 20.2 16.7 0.6 (18.9)
Total Net Position 36.7 19.2 64.5 55.4 101.2 74.6
* Values may differ from financials due to rounding.
Village of Buffalo Grove's Net Position (in Millions)*
Governmental Business-Type
Activities Activities Total
17
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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 $4.1 million is
primarily related to $1.6 million more in cash and investments and $2.4 million more in receivables. The
Village experienced an increase of $1.1 million (23.4 percent) in service charge revenues, $6.0 million
(51.7 percent) in sales and use taxes, $1.0 million (27.7 percent) in income taxes, $0.6 million (60.0 percent)
in property transfer taxes, and $0.9 million (36 percent) in other revenues. Property taxes and utility taxes
stayed consistent to the prior year. The Village experienced a decrease of $0.2 (22.2 percent) in
telecommunications taxes, $0.6 (15.8 percent) in operating grants/contributions, and $0.3 (15.0 percent) in
capital grants/contributions.
The Village maintained capital improvement and asset purchases in 2021. 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:
18
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
2021 2020 2021 2020 2021 2020
Revenues
Program Revenues
Charges for Services $ 5.8 4.7 19.9 18.2 25.7 22.9
Grants / Contributions
Operating 3.2 3.8 - - 3.2 3.8
Capital 1.7 2.0 - 0.3 1.7 2.3
General Revenues
Property Taxes 17.0 17.0 - - 17.0 17.0
Sales and Use Taxes 17.6 11.6 - - 17.6 11.6
Income Taxes 5.6 4.6 - - 5.6 4.6
Telecommunications Taxes 0.7 0.9 - - 0.7 0.9
Utility Taxes 2.6 2.6 - - 2.6 2.6
Property Transfer Taxes 1.6 1.0 - - 1.6 1.0
Other General Revenues 3.4 2.5 0.8 0.6 4.2 3.1
Total Revenues 59.2 50.7 20.7 19.1 79.9 69.8
Expenses
General Government 7.7 7.2 - - 7.7 7.2
Public Safety 23.9 26.1 - - 23.9 26.1
Public Works 8.0 7.7 - - 8.0 7.7
Interest 1.0 1.2 - - 1.0 1.2
Water - - 10.5 10.4 10.5 10.4
Sewer - - 0.9 0.8 0.9 0.8
Golf - - 2.8 2.6 2.8 2.6
Total Expenses 40.6 42.2 14.2 13.8 54.8 56.0
Change in Net Position
Before Transfers 18.6 8.5 6.5 5.3 25.1 13.8
Transfers (1.9) (1.6) 1.9 1.6 - -
Change in Net Position 16.7 6.9 8.4 6.9 25.1 13.8
Net Position - Beginning as Restated 20.0 12.3 56.1 48.5 76.1 60.8
Net Position - Ending 36.7 19.2 64.5 55.4 101.2 74.6
* Values may differ from financials due to rounding.
Activities Activities Total
Village of Buffalo Grove's Changes in Net Position (in Millions)*
Governmental Business-Type
19
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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 $16.7 million to $36.7 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, 2021 were $59.2
million, an increase of $8.5 million or 16.8 percent. Property taxes continue to be one of the Village’s
largest source of revenue (28.7 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 40.7 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 $31.5 million or 53.2 percent of total governmental activities revenue. Property taxes decreased by
$0.06 million. There was a 0.3% decrease in the corporate agency tax levy collected in 2021, primarily due
to the deferred collection of property tax payments in Cook County. The corporate levy for 2021, to be
collected in 2022, is funding Police and Fire Protection.
20
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The Police Protection levy increased $0.2 million (7.9 percent) and the Fire Protection Levy increased $0.35
million (17.6 percent). The total tax levy increased marginally by 0.08 percent.
Sales and use tax increased by $6.0 million compared to the previous year. The increase was due in part to
sales tax rebates being newly classified as an expense in 2021. Telecommunications taxes decreased $0.2
million compared to prior year. Income taxes continue to rebound increasing $1.0 million from FY 2020, a
21.7 percent change. Utility taxes stayed consistent with prior year. Property transfer taxes increased $0.6
million compared to 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 $40.6 million, a decrease of 3.8 percent from 2020
($42.2 million). The largest decrease was made in Public Safety expenses $2.2 million in 2021. General
Government expenses increased by $0.5 million (6.9 percent) and Public Works expenses increased by $0.3
million (3.9 percent).
10%
8%
29%
30%
9%1%4%3%6%
Village of Buffalo Grove 2021 Revenue by Source Govenmental Activities
Charges for Service
Grants and Contributions
Property Tax
Sales and Use Tax
Income Tax
Telecommunication
Utility Tax
Property Transfer Tax
Other Taxes
19%
59%
20%
2%
Village of Buffalo Grove 2021 Expenses by Function Governemntal
Activities Expenses
General Government
Public Safety
Public Works
Interest
21
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The Statement of Activities shows that $5.8 million in revenue was generated to finance the services
rendered by the user fees. Another $4.9 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 $8.4 million. Significant changes are noted below.
Revenue:
Water sales increased $1.3 million from the previous year. The total amount pumped was 1.26 billion
gallons in 2020 versus 1.29 billion in 2021. The utility increased revenue with a 4.0 percent water rate
increase. There was a slight increase in water consumed of .01 billion gallons (.84 percent). The two golf
courses generated $2.6 million in 2021, $0.1 million (4 percent) better than 2020 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 $0.4 million or 3.6 percent. The Water Fund
expenses increased by $0.2 million, which compares favorably to a budgeted increase in expenses. Golf
expenses were increased in 2021 to $2.8 million in total or 7.7 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.
22
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The Village’s governmental funds for the year ended December 31, 2021, reflect a combined fund balance
of $51.2 million on its balance sheet. This represents a $0.5 million dollar increase over the balance posted
last year. Governmental revenues increased a total of $8.4 million. Sales taxes, both state shared and home
rule, increased by $6.1 million dollars. The increase was due in part to sales tax rebates being newly
classified as an expense in 2021. State shared income taxes increased by $1.0 million and building permit
revenues increased by $0.9 million. Governmental expenditures increased over prior year by $2.1 million.
Due to the issuance in bonds in 2020, the net decrease in Fund Balance for the Debt Service Fund in 2021
was $8.6 million compared to a combined increase in all other Governmental Funds of $9.1 million. Of
the total fund balance of $51.2 million, $22.5 million is unassigned indicating availability for future
obligations.
The 2021 unassigned fund balance increased by $2.4 million. Nonspendable fund balance ($0.58 million)
represents amounts set aside for inventory and deposits. Restricted fund balance ($12.9 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 ($15.2 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,
its 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, 2021, the unassigned fund balance represents 45.7
percent of the FY 2021 operating budget. The Fund Balance of the General Fund increased by $7.7 million
for the fiscal year ended December 31, 2021.
General Fund revenues increased by $8.5 million in 2021. The most notable increases were in state shared
sales tax and home rule sales tax of $3.0 million and $3.1 million, respectively. As noted earlier, the increase
was due in part to sales tax rebates being newly classified as an expense in 2021 Income tax increased $1.0
million (23.49 percent) and local use tax decreased $0.24 million (12.8 percent). Real estate transfer taxes
increased by $0.62 million (61.9%) while building permit revenue increased by $0.91 million (73.1%).
Other State of Illinois shared revenues increased $74,751 (0.58%).
The overall increase in the General Fund revenue was 18.3 percent, while expenditures increased 4.4
percent ($1.9 million) in 2021.
23
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The surplus of revenues over expenditures (before other financing sources/uses) was $10.5 million. Adding
in the Other Financing Sources (Uses), the net change to fund balance resulted in an increase of $7.7 million.
Public Safety Expenditures increased $0.5 million, 1.7 percent, in FY 2021. Public Works decreased 10.0
percent ($0.7 million) and General Government spent $2.1 million more in 2021 versus 2020.
Special Revenue Funds have a combined fund balance of $3.8 million as of December 31, 2021. In 2021
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 Fund, and grant revenues in 2021.
Revenues received from the state share of the motor fuel tax were $2.6 million and local share of motor
fuel tax of $0.5 million. The scope of each year’s identified maintenance, as determined through pavement
analysis studies, typically surpasses the revenues received. The Capital Projects Street 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, 2021, the remainder will be expended in FY 2022. 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 $8.2 million at the end of FY 2021, The Village debt totals
$32.0 million, all general obligation bonds, and retired $1.6 million in principal in the current year. The
interest paid associated with the debt retired was $1.2 million. Debt per capita is $927.13 as of December
31, 2021.
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.
24
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The water and sewer utility experienced net operating income before interest and transfers of $5.8 million
for FY 2021, an increase of $1.4 million (31.8 percent) from the prior fiscal year. A rate increase of 4%
percent was applied to all water and sewer usage. Sewer operations accounted for 33.8 percent, or $5.0
million of the total Water and Sewer operational expenditures. Water operations accounted for $1.8 million
(12.4 percent) and capital outlay for both systems totaling $6.1 million (41.2 percent). The purchase of
water accounted for 12.5 percent, or $1.9 million. Sanitary sewer fees collected on behalf of Lake County
Public Works was $3.5 million for FY 2021. These two pass-through expenses account for 36.42 percent
of the total operating expense of the fund.
Non-operating revenue (expense) decreased $68,016 due to investment income.
The unrestricted net position of the Water and Sewer Fund at the end of the current fiscal year was $18.8
million and of that amount $8.8 million is the Village’s equity interest in the Northwest Water Commission.
The installment note to pay down the water meter replacement project is $5.1 million, or 55.3 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 $0.85 million.
Total revenues were up $55,000 from 2020. The Buffalo Grove Golf Course generated $1.5 million in
operating revenue while incurring $1.2 million in operating expenses. A total of 71,617 paid rounds were
played between the two courses in 2021.
25
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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.
Final
Budget Actual
Revenues and Transfers:
Taxes $39,851 47,041
Charges for Services 2,349 3,295
1,545 2,206
Licenses and permits 356 302
1,199 2,184
1,780 1,431
Total Revenues and Transfers 47,080 56,459
Expenditures and Transfers
44,610 44,561
4,566 4,157
49,176 48,718
Change in fund balance (2,096) 7,741
* Values may differ from financials due to rounding.
General Fund Budgetary Highlights
For the Fiscal Year Ended December 31, 2021
(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, income tax, real
estate transfer taxes and building permit revenue. Actual expenditures performed better than budget due to
the reduction in transfers out to other funds.
Capital Assets
At the end of December 31, 2021, the Village had a combined total capital assets of $127.8 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.
26
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
2021 2020 2021 2020 2021 2020
Land $39.5 39.5 6.2 6.2 45.7 45.7
Construction in Progress 8.0 3.0 5.2 1.8 13.2 4.8
Buildings 4.2 4.4 0.6 0.7 4.8 5.1
Equipment and Vehicles 7.4 7.7 0.1 - 7.5 7.7
Land Improvements 2.5 2.6 - - 2.5 2.6
Streets and Storm Sewers 16.4 15.1 - - 16.4 15.1
Water and Sewer Infrastructure - - 37.7 36.7 37.7 36.7
78.0 72.3 49.8 45.4 127.8 117.7
* Values may differ from financials due to rounding.
Village of Buffalo Grove Capital Assets at Year End (in millions)*
Governmental Business-Type
Activities Activities Total
The Governmental Activities net capital assets increased from last year by $5.7 million (7.9 percent). For
the Business-type activities, the net capital assets increased by $4.4 million or (9.7 percent).
The capital activity for the Village of Buffalo Grove is mostly in streets, water and sewer, 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 $37.5 million as shown in the next table:
2021 2020 2021 2020 2021 2020
General Obligation Bonds $32.0 34.6 - - 32.0 34.6
IEPA Loans - - 0.3 0.3 0.3 0.3
Installment Contracts Payable - - 5.2 5.6 5.2 5.6
32.0 34.6 5.5 5.9 37.5 40.5
* Values may differ from financials due to rounding.
Village of Buffalo Grove Long-Term Debt (in millions)*
Governmental Business-Type
Activities Activities Total
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”.
27
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
The total per capita general obligation (GO) debt for the community stands at $795.26 and represents 0.64
percent of the equalized assessed valuation of the Village.
The Village, under its home rule authority, does not have a legal debt limit.
Detailed information on the Village’s long-term debt can be found in Note 3.
Economic Factors and Next Year’s Budgets and Rates
The Village entered 2022 with a balanced operating budget. The budget for the fiscal year beginning
January 1, 2022, is $118,384,488 a 4.7 percent increase from the previous year. The operating budget totals
$52,136,718 resulting in a 6.0 percent increase over the previous year.
Total capital spending during the year is estimated to be $22.1 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 2022, the Village enters year 2 of 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 was not expected to increase for the 2021 tax levy (extended and collected in 2022). A tax levy
was adopted for the 2022 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 2022, included in the budget are
monies to restore a portion of the positions eliminated as part of the 2021 Budget due to Covid-19 and its
economic impact.
28
VILLAGE OF BUFFALO GROVE, ILLINOIS
Management’s Discussion and Analysis (Unaudited)
December 31, 2021
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 Christine Berman, Deputy Director of Finance, Village of Buffalo Grove, 50
Raupp Boulevard, Buffalo Grove, IL 60089.
29
• 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.
30
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position
December 31, 2021
See Following Page
31
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position
December 31, 2021
Business-Type
Activities Totals
Current Assets
Cash and Investments $49,222,036 11,605,786 60,827,822
Receivables - Net of Allowances 26,709,358 2,878,126 29,587,484
Prepaids/Inventories 583,442 37,432 620,874
Total Current Assets 76,514,836 14,521,344 91,036,180
Noncurrent Assets
Capital Assets
Nondepreciable 47,508,397 11,445,101 58,953,498
Depreciable 115,338,357 94,760,463 210,098,820
Accumulated Depreciation (84,816,431)(56,441,936)(141,258,367)
78,030,323 49,763,628 127,793,951
Other Assets
Investment in Joint Venture - 8,782,108 8,782,108
Total Noncurrent Assets 78,030,323 58,545,736 136,576,059
Total Assets 154,545,159 73,067,080 227,612,239
Derferred Items - ARO - 1,598,350 1,598,350
Deferred Items - IMRF 2,358,127 430,577 2,788,704
Deferred Items - Police Pension 4,454,306 - 4,454,306
Deferred Items - Firefighters' Pension 3,659,202 - 3,659,202
Deferred Items - RBP 4,108,162 232,617 4,340,779
Total Deferred Outflows of Resources 14,579,797 2,261,544 16,841,341
Total Assets and Deferred Outflows of Resources 169,124,956 75,328,624 244,453,580
Governmental
Activities
ASSETS
DEFERRED OUTFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
32
Business-Type
Activities Totals
Current Liabilities
Accounts Payable $3,433,406 1,295,833 4,729,239
Accrued Payroll 1,007,951 59,677 1,067,628
Deposits Payable 329,145 326,878 656,023
Other Payables 657,496 - 657,496
Compensated Absences Payable 268,908 24,958 293,866
Current Portion of Long-Term Debt 2,570,990 510,746 3,081,736
Total Current Liabilities 8,267,896 2,218,092 10,485,988
Noncurrent Liabilities
Compensated Absences Payable 1,075,632 99,834 1,175,466
Net Pension Liability - IMRF 675,579 123,357 798,936
Net Pension Liability - Police Pension 19,784,431 - 19,784,431
Net Pension Liability - Firefighters' Pension 8,450,055 - 8,450,055
Total OPEB Liability - RBP 14,725,648 833,813 15,559,461
General Obligation Bonds Payable - Net 32,041,590 - 32,041,590
IEPA Loan Payable - 252,725 252,725
Installment Note Payable - 4,687,282 4,687,282
Asset Retirement Obligation - 1,725,500 1,725,500
Total Noncurrent Liabilities 76,752,935 7,722,511 84,475,446
Total Liabilities 85,020,831 9,940,603 94,961,434
Grants 2,752,462 - 2,752,462
Property Taxes 17,115,541 - 17,115,541
Deferred Items - IMRF 4,987,137 910,616 5,897,753
Deferred Items - Police Pension 12,313,616 - 12,313,616
Deferred Items - Firefighters' Pension 9,795,621 - 9,795,621
Deferred Items - RBP 431,750 24,447 456,197
Total Deferred Inflows of Resources 47,396,127 935,063 48,331,190
Total Liabilities and Deferred Inflows of Resources 132,416,958 10,875,666 143,292,624
Net Investment in Capital Assets 51,402,847 44,312,875 95,715,722
Restricted - IMRF 514,540 - 514,540
Restricted - Public Safety 350,645 - 350,645
Restricted - Motor Fuel Tax 3,780,893 - 3,780,893
Restricted - Metra Parking Lot 15,100 - 15,100
Restricted - TIF 11,833 - 11,833
Restricted - Debt Service 247,676 - 247,676
Unrestricted (Deficit)(19,615,536)20,140,083 524,547
Total Net Position 36,707,998 64,452,958 101,160,956
NET POSITION
LIABILITIES
Activities
Governmental
DEFERRED INFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
33
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Activities
For the Fiscal Year Ended December 31, 2021
Charges Operating Capital
for Grants/Grants/
Services Contributions Contributions
Governmental Activities
General Government $7,742,034 3,612,362 - -
Public Safety 23,840,822 1,951,101 994,387 -
Public Works 8,011,808 254,557 2,163,064 1,642,292
Interest on Long-Term Debt 1,013,033 - - -
Total Governmental Activities 40,607,697 5,818,020 3,157,451 1,642,292
Business-Type Activities
Water and Sewerage 10,645,623 15,909,163 - -
Arboretum Golf 1,528,123 1,348,531 - -
Buffalo Grove Golf 1,238,423 1,494,672 - -
Refuse Service 908,620 1,122,716 - -
Total Business-Type Activities 14,320,789 19,875,082 - -
Total Primary Government 54,928,486 25,693,102 3,157,451 1,642,292
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 as Restated
Net Position - Ending
Expenses
Program Revenues
The notes to the financial statements are an integral part of this statement.
34
Governmental Business-Type
Activities Activities Totals
(4,129,672)- (4,129,672)
(20,895,334)- (20,895,334)
(3,951,895)- (3,951,895)
(1,013,033)- (1,013,033)
(29,989,934)- (29,989,934)
- 5,263,540 5,263,540
- (179,592)(179,592)
- 256,249 256,249
- 214,096 214,096
- 5,554,293 5,554,293
(29,989,934)5,554,293 (24,435,641)
16,970,657 - 16,970,657
6,873,226 - 6,873,226
716,737 - 716,737
2,662,956 - 2,662,956
1,601,370 - 1,601,370
923,393 - 923,393
5,643,154 - 5,643,154
9,139,951 - 9,139,951
1,616,041 - 1,616,041
42,887 - 42,887
302,397 - 302,397
(33,773)394,698 360,925
2,210,580 417,516 2,628,096
(1,955,738)1,955,738 -
46,713,838 2,767,952 49,481,790
16,723,904 8,322,245 25,046,149
19,984,094 56,130,713 76,114,807
36,707,998 64,452,958 101,160,956
Net (Expenses)/Revenues
Primary Government
The notes to the financial statements are an integral part of this statement.
35
VILLAGE OF BUFFALO GROVE, ILLINOIS
Balance Sheet - Governmental Funds
December 31, 2021
Cash and Investments $36,512,376
Receivables - Net of Allowances
Taxes 22,698,589
Other 2,369,642
Due from Other Funds 54,941
Inventories 124,965
Prepaids 458,477
Total Assets 62,218,990
Accounts Payable 2,419,849
Accrued Payroll 959,345
Deposits Payable 329,145
Due to Other Governments 657,496
Due to Other Funds 60,472
Total Liabilities 4,426,307
Grants 2,752,462
Property Taxes 16,780,272
19,532,734
Total Liabilities and Deferred Inflows
of Resources 23,959,041
Nonspendable 583,442
Restricted 865,185
Committed 14,326,113
Unassigned 22,485,209
Total Fund Balances 38,259,949
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 62,218,990
FUND BALANCES
General
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
The notes to the financial statements are an integral part of this statement.
36
Vehicle
Debt Facilities Street Equipment
Service Development Maintenance Replacement Nonmajor Totals
8,229,293 68,989 202,909 149,531 3,708,554 48,871,652
335,269 - - - - 23,033,858
4,222 - 1,147,327 - 154,309 3,675,500
- - - - - 54,941
- - - - - 124,965
- - - - - 458,477
8,568,784 68,989 1,350,236 149,531 3,862,863 76,219,393
735 27,682 551,715 131,786 96 3,131,863
- - - - - 959,345
- - - - - 329,145
- - - - - 657,496
- - - - 54,941 115,413
735 27,682 551,715 131,786 55,037 5,193,262
- - - - - 2,752,462
335,269 - - - - 17,115,541
335,269 - - - - 19,868,003
336,004 27,682 551,715 131,786 55,037 25,061,265
- - - - - 583,442
8,232,780 - - - 3,807,826 12,905,791
- 41,307 798,521 17,745 - 15,183,686
- - - - - 22,485,209
8,232,780 41,307 798,521 17,745 3,807,826 51,158,128
8,568,784 68,989 1,350,236 149,531 3,862,863 76,219,393
Capital Projects
The notes to the financial statements are an integral part of this statement.
37
VILLAGE OF BUFFALO GROVE, ILLINOIS
Reconciliation of Total Governmental Fund Balance to
Net Position - Governmental Activities
December 31, 2021
Total Governmental Fund Balances $51,158,128
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.78,030,323
Deferred outflows (inflows) of resources related to the pensions not
reported in the funds.
Deferred Items - IMRF (2,629,010)
Deferred Items - Police Pension (7,859,310)
Deferred Items - Firefighters' Pension (6,136,419)
Deferred Items - RBP 3,676,412
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 60,707
Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds.
Compensated Absences Payable (1,344,540)
Net Pension Liability - IMRF (675,579)
Net Pension Liability - Police Pension (19,784,431)
Net Pension Liability - Firefighters' Pension (8,450,055)
Total OPEB Liability - RBP (14,725,648)
General Obligation Bonds Payable - Net (34,612,580)
Net Position of Governmental Activities 36,707,998
The notes to the financial statements are an integral part of this statement.
38
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended December 31, 2021
See Following Page
39
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Fiscal Year Ended December 31, 2021
Revenues
Taxes $29,302,675
Intergovernmental 17,738,817
Charges for Services 3,294,828
Licenses and Permits 301,917
Fines and Forfeitures 2,205,658
Interest (40,060)
Miscellaneous 2,210,580
Total Revenues 55,014,415
Expenditures
Current
General Government 8,707,739
Public Safety 29,352,949
Public Works 6,324,738
Capital Outlay 175,376
Debt Service
Principal Retirement -
Interest and Fiscal Charges -
Total Expenditures 44,560,802
Excess (Deficiency) of Revenues
Over (Under) Expenditures 10,453,613
Other Financing Sources (Uses)
Disposal of Capital Assets 13,500
Transfers In 1,431,386
Transfers Out (4,157,028)
(2,712,142)
Net Change in Fund Balances 7,741,471
Fund Balances - Beginning 30,518,478
Fund Balances - Ending 38,259,949
General
The notes to the financial statements are an integral part of this statement.
40
Vehicle
Debt Facilities Street Equipment
Service Development Maintenance Replacement Nonmajor Totals
414,823 - - - 30,841 29,748,339
- - 730,709 - 3,074,647 21,544,173
- - - - - 3,294,828
- - - - - 301,917
- - - - 15,617 2,221,275
6,287 - - - - (33,773)
- - - - - 2,210,580
421,110 - 730,709 - 3,121,105 59,287,339
- - - - 211,595 8,919,334
- - - - - 29,352,949
- - - - - 6,324,738
- 138,190 6,482,065 1,705,147 - 8,500,778
2,550,445 - - - - 2,550,445
1,200,773 - - - - 1,200,773
3,751,218 138,190 6,482,065 1,705,147 211,595 56,849,017
(3,330,108)(138,190)(5,751,356)(1,705,147)2,909,510 2,438,322
- - - - - 13,500
3,346,411 138,190 6,308,126 1,705,147 150,000 13,079,260
(8,612,990)- - - (2,264,980)(15,034,998)
(5,266,579)138,190 6,308,126 1,705,147 (2,114,980)(1,942,238)
(8,596,687)- 556,770 - 794,530 496,084
16,829,467 41,307 241,751 17,745 3,013,296 50,662,044
8,232,780 41,307 798,521 17,745 3,807,826 51,158,128
Capital Projects
The notes to the financial statements are an integral part of this statement.
41
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, 2021
Net Change in Fund Balances - Total Governmental Funds $496,084
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 8,254,757
Depreciation Expense (2,488,036)
Disposals - Cost (1,114,236)
Disposals - Accumulated Depreciation 1,074,687
The net effect of deferred outflows (inflows) of resources related
to the pensions not reported in the funds.
Change in Deferred Items - IMRF (2,307,678)
Change in Deferred Items - Police Pension (3,439,146)
Change in Deferred Items - Firefighters'' Pension (785,314)
Change in Deferred Items - RBP (106,830)
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 (62,771)
Change in Net Pension Liability - IMRF 4,484,897
Change in Net Pension Liability - Police Pension 6,835,676
Change in Net Pension Liability - Firefighters' Pension 3,824,923
Change in Total OPEB Liability - RBP (728,860)
Retirement of Debt 2,550,445
Amortization of Bond Premium 187,740
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.47,566
Changes in Net Position of Governmental Activities 16,723,904
The notes to the financial statements are an integral part of this statement.
42
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position - Proprietary Funds
December 31, 2021
See Following Page
43
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Net Position - Proprietary Funds
December 31, 2021
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
Current Assets
Cash and Investments $9,602,639 1,179,106 824,041 11,605,786 350,384
Receivables - Net of Allowances
Accounts 2,172,728 - - 2,172,728 -
Other 705,398 - - 705,398 -
Inventories - 27,806 9,626 37,432 -
Total Current Assets 12,480,765 1,206,912 833,667 14,521,344 350,384
Noncurrent Assets
Capital Assets
Nondepreciable 5,246,587 5,219,738 978,776 11,445,101 -
Depreciable 81,522,331 10,001,924 3,236,208 94,760,463 -
Accumulated Depreciation (43,828,493)(9,990,848)(2,622,595)(56,441,936)-
42,940,425 5,230,814 1,592,389 49,763,628 -
Other Assets
Investment in Joint Venture 8,782,108 - - 8,782,108 -
Total Noncurrent Assets 51,722,533 5,230,814 1,592,389 58,545,736 -
Total Assets 64,203,298 6,437,726 2,426,056 73,067,080 350,384
1,598,350 - - 1,598,350 -
Deferred Items - IMRF 328,006 32,657 69,914 430,577 -
Deferred Items - RBP 213,140 - 19,477 232,617 -
Total Deferred Outflows of Resources 2,139,496 32,657 89,391 2,261,544 -
Total Assets and Deferred
Outflows of Resources 66,342,794 6,470,383 2,515,447 75,328,624 350,384
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.
44
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
Current Liabilities
Accounts Payable $1,186,000 1,596 108,237 1,295,833 241,071
Accrued Payroll 46,055 6,109 7,513 59,677 48,606
Deposits Payable 25,075 301,803 - 326,878 -
Compensated Absences Payable 14,945 - 10,013 24,958 -
IEPA Loan Payable 19,983 - - 19,983 -
Installment Note Payable 490,763 - - 490,763 -
Total Current Liabilities 1,782,821 309,508 125,763 2,218,092 289,677
Noncurrent Liabilities
Compensated Absences Payable 59,780 - 40,054 99,834 -
Net Pension Liability - IMRF 93,971 9,356 20,030 123,357 -
Total OPEB Liability - RBP 763,997 - 69,816 833,813 -
IEPA Loan Payable 252,725 - - 252,725 -
Installment Note Payable 4,687,282 - - 4,687,282 -
Asset Retirement Obligation 1,725,500 - - 1,725,500 -
Total Noncurrent Liabilities 7,583,255 9,356 129,900 7,722,511 -
Total Liabilities 9,366,076 318,864 255,663 9,940,603 289,677
Deferred Items - IMRF 693,691 69,066 147,859 910,616 -
Deferred Items - RBP 22,400 - 2,047 24,447 -
Total Deferred Inflows of Resources 716,091 69,066 149,906 935,063 -
Total Liabilities and Deferred
Inflows of Resources 10,082,167 387,930 405,569 10,875,666 289,677
Net Investment in Capital Assets 37,489,672 5,230,814 1,592,389 44,312,875 -
Unrestricted 18,770,955 851,639 517,489 20,140,083 60,707
Total Net Position 56,260,627 6,082,453 2,109,878 64,452,958 60,707
Total Liabilities, Deferred Inflows of
Resources, and Net Position 66,342,794 6,470,383 2,515,447 75,328,624 350,384
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.
45
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds
For the Fiscal Year Ended December 31, 2021
Operating Revenues
Charges for Services $15,909,163
Interfund Services -
Miscellaneous 417,516
Total Operating Revenues 16,326,679
Operating Expenses
Operations 8,716,283
Capital Outlay 78,917
Depreciation and Amortization 1,715,455
Total Operating Expenses 10,510,655
Operating Income (Loss)5,816,024
Nonoperating Revenues (Expenses)
Interest Income 394,698
Interest Expense (134,968)
259,730
Income (Loss) Before Transfers 6,075,754
Transfers In 4,267,894
Transfers Out (2,241,950)
2,025,944
Change in Net Position 8,101,698
Net Position - Beginning as Restated 48,158,929
Net Position - Ending 56,260,627
Sewerage
Water and
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
46
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
1,348,531 2,617,388 19,875,082 -
- - - 4,943,749
- - 417,516 -
1,348,531 2,617,388 20,292,598 4,943,749
1,517,497 2,081,623 12,315,403 4,896,183
- 11,755 90,672 -
10,626 53,665 1,779,746 -
1,528,123 2,147,043 14,185,821 4,896,183
(179,592)470,345 6,106,777 47,566
- - 394,698 -
- - (134,968)-
- - 259,730 -
(179,592)470,345 6,366,507 47,566
129,794 - 4,397,688 -
- (200,000)(2,441,950)-
129,794 (200,000)1,955,738 -
(49,798)270,345 8,322,245 47,566
6,132,251 1,839,533 56,130,713 13,141
6,082,453 2,109,878 64,452,958 60,707
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
47
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended December 31, 2021
Cash Flows from Operating Activities
Receipts from Customers and Users $15,508,180
Interfund Services Provided -
Payments to Suppliers (7,445,102)
Payments to Employees (1,014,838)
7,048,240
Cash Flows from Capital and Related
Financing Activities
Purchase of Capital Assets (6,029,959)
Principal Retirement (456,502)
Interest Expense (134,968)
(6,621,429)
Cash Flows from Noncapital Financing Activities
Transfers In 4,267,894
Transfers Out (2,241,950)
2,025,944
Cash Flows from Investing Activities
Interest Income 394,698
Net Change in Cash and Cash Equivalents 2,847,453
Cash and Cash Equivalents - Beginning 6,755,186
Cash and Cash Equivalents - Ending 9,602,639
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities
Operating Income 5,816,024
Adjustments to Reconcile Operating Income to Net Cash Provided by
(Used in) Operating Activities:
Depreciation and Amortization Expense 1,715,455
Other Income (Expense)(589,330)
(Increase) Decrease in Current Assets (229,169)
Increase (Decrease) in Current Liabilities 335,260
Net Cash Provided by Operating Activities 7,048,240
Sewerage
Water and
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
48
Governmental
Activities
Arboretum Internal
Golf Nonmajor Totals Service
1,256,670 2,634,170 19,399,020 -
- - - 4,943,749
(1,076,618)(282,270)(8,803,990)(4,114,792)
(155,531)(1,708,525)(2,878,894)(1,003,613)
24,521 643,375 7,716,136 (174,656)
(11,077)- (6,041,036)-
- - (456,502)-
- - (134,968)-
(11,077)- (6,632,506)-
129,794 - 4,397,688 -
- (200,000)(2,441,950)-
129,794 (200,000)1,955,738 -
- - 394,698 -
143,238 443,375 3,434,066 (174,656)
1,035,868 380,666 8,171,720 525,040
1,179,106 824,041 11,605,786 350,384
(179,592)470,345 6,106,777 47,566
10,626 53,665 1,779,746 -
(93,892)25,326 (657,896)-
2,031 16,782 (210,356)-
285,348 77,257 697,865 (222,222)
24,521 643,375 7,716,136 (174,656)
Business-Type Activities - Enterprise
The notes to the financial statements are an integral part of this statement.
49
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Fiduciary Net Position
December 31, 2021
Cash and Cash Equivalents $5,656,621
Investments
U.S. Treasury Obligations 10,790,132
U.S. Agency Obligations 21,254,430
Corporate Bonds 15,094,448
State and Local Obligations 3,648,789
Mutual Funds 96,904,549
Equity Securities 31,064,401
Receivables - Net of Allowance
Accrued Interest 240,736
Due from Other Funds 60,472
Prepaids 795
Total Assets 184,715,373
Accounts Payable 60,565
Net Position Restricted for Pensions 184,654,808
NET POSITION
Trust
Pension
ASSETS
LIABILITIES
The notes to the financial statements are an integral part of this statement.
50
VILLAGE OF BUFFALO GROVE, ILLINOIS
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended December 31, 2021
Additions
Contributions - Employer $5,704,681
Contributions - Plan Members 1,256,282
Total Contributions 6,960,963
Investment Earnings
Interest Earned 3,642,465
Net Change in Fair Value 22,328,507
25,970,972
Less Investment Expenses (328,216)
Net Investment Income 25,642,756
Total Additions 32,603,719
Deductions
Administration 112,198
Benefits and Refunds 9,453,883
Total Deductions 9,566,081
Change in Fiduciary Net Position 23,037,638
Net Position Restricted for Pensions
Beginning 161,617,170
Ending 184,654,808
Pension
Trust
The notes to the financial statements are an integral part of this statement.
51
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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.
52
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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.
53
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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.
54
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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:
55
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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.).
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.
56
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
BASIS OF PRESENTATION – Continued
Fund Financial Statements – Continued
Fiduciary Funds – Continued
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.
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.
57
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued
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.
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.
58
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
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.
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.
59
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET
POSITION OR EQUITY – Continued
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. 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.
60
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued
ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET
POSITION OR EQUITY – Continued
Compensated Absences – Continued
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.
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.”
61
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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
Fund, Special Revenue Funds except for the Lake Cook Road TIF Fund, Debt Service Funds, Capital
Projects Funds, Proprietary Funds, 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.
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 $ 255,545
Buffalo Grove Golf 78,404
Refuse Service 70,957
Central Garage 120,336
Police Pension 467,892
Firefighters' Pension 212,818
Excess
62
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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.
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;
63
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
DEPOSITS AND INVESTMENTS – Continued
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 $30,288,891 and the bank balances totaled $21,750,620.
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
U.S. Treasuries $ 758,878 - 758,878 - -
State and Local Obligations 256,839 256,839 - - -
Illinois Funds 9,302,774 9,302,774 - - -
IMET 7,795,968 7,795,968 - - -
IPRIME 12,424,472 12,424,472 - - -
30,538,931 29,780,053 758,878 - -
Investment Maturities (in Years)
64
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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
The Village has the following recurring fair value measurements as of December 31, 2021:
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. Treasuries $ 758,878 758,878 - -
State and Local Obligations 256,839 - 256,839 -
1,015,717 758,878 256,839 -
Investments Measured at the Net Asset Value (NAV)
Illinois Funds 9,302,774
IMET 7,795,968
IPRIME 12,424,472
Total Investments at the (NAV)29,523,214
Total Investments Measured at Fair Value 30,538,931
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.
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.
65
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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
Credit Risk – Continued. 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. 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).
66
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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
Deposits. At year-end, the carrying amount of the Fund’s deposits totaled $3,320,835 and the bank
balances totaled $3,380,091.
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 $ 8,239,761 4,156,344 290,873 626,890 3,165,654
U.S. Agency Obligations 7,393,727 - 3,189,488 492,517 3,711,722
Corporate Bonds 9,291,226 1,036,913 4,015,304 4,239,009 -
24,924,714 5,193,257 7,495,665 5,358,416 6,877,376
Investment Maturities (in Years)
The Fund has the following recurring fair value measurements as of December 31, 2021:
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 $ 8,239,761 8,239,761 - -
U.S. Agency Obligations 7,393,727 - 7,393,727 -
Corporate Bonds 9,291,226 - 9,291,226 -
Equity Securities
Mutual Funds 38,871,210 38,871,210 - -
Equity Securities 31,064,401 31,064,401 - -
Total Investments Measured
at Fair Value 94,860,325 78,175,372 16,684,953 -
Totals
Fair Value Measurements Using
67
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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
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. 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 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.
68
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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. 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 $38,871,210 invested in mutual funds and $31,064,401 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).
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, 2021, are listed in the table above.
Rate of Return
For the year ended December 31, 2021, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 17.79%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
69
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $2,335,786 and the bank
balances totaled $2,335,786.
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 $ 2,550,371 - 1,860,855 689,516 -
U.S. Agency Obligations 13,860,703 859,320 4,430,393 8,570,990 -
Corporate Bonds 5,803,222 - 1,035,648 4,767,574 -
State and Local Obligations 3,648,789 241,578 1,436,982 1,634,229 336,000
25,863,085 1,100,898 8,763,878 15,662,309 336,000
Investment Maturities (in Years)
The Fund has the following recurring fair value measurements as of December 31, 2021:
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 $ 2,550,371 2,550,371 - -
U.S. Agency Obligations 13,860,703 - 13,860,703 -
Corporate Bonds 5,803,222 - 5,803,222 -
State and Local Obligations 3,648,789 - 3,648,789 -
Equity Securities
Mutual Funds 58,033,339 58,033,339 - -
Total Investments Measured
at Fair Value 83,896,424 60,583,710 23,312,714 -
Fair Value Measurements Using
Totals
70
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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
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. 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.
71
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $58,033,339 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, 2021, are listed in the table above.
Rate of Return
For the year ended December 31, 2021, the annual money-weighted rate of return on pension plan
investments, net of pension plan investment expense, was 13.76%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts actually
invested.
72
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 Lake Cook Road TIF $ 54,941
Police Pension General 35,328
Fire Pension General 25,144
115,413
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 Nonmajor Governmental $ 651,386 (1)
General Water and Sewerage 780,000 (1)
Debt Service General 402,511 (2)
Debt Service Water and Sewerage 1,461,950 (2)
Debt Service Nonmajor Governmental 1,281,950 (2)
Debt Service Nonmajor Business-Type 200,000 (2)
Facilities Development General 138,190 (2)
Street Maintenance General 1,631,386 (2)
Street Maintenance Debt Service 4,345,096 (1)
Street Maintenance Nonmajor Governmental 331,644 (1)
Vehicle Replacement General 1,705,147 (2)
Nonmajor Governmental General 150,000 (3)
Water and Sewerage Debt Service 4,267,894 (1)
Arboretum Golf General 129,794 (1)
17,476,948
Amount
73
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $ 39,502,936 - - 39,502,936
Construction in Progress 3,012,874 5,146,439 153,852 8,005,461
42,515,810 5,146,439 153,852 47,508,397
Depreciable Capital Assets
Buildings 26,763,204 256,357 - 27,019,561
Equipment and Vehicles 16,258,415 1,031,748 1,114,236 16,175,927
Land Improvements 3,242,060 - - 3,242,060
Streets 28,456,266 1,907,565 - 30,363,831
Storm Sewers 38,470,478 66,500 - 38,536,978
113,190,423 3,262,170 1,114,236 115,338,357
Less Accumulated Depreciation
Buildings 22,361,195 459,096 - 22,820,291
Equipment and Vehicles 8,568,470 1,237,651 1,074,687 8,731,434
Land Improvements 666,227 64,845 - 731,072
Streets 14,680,762 522,771 - 15,203,533
Storm Sewers 37,126,428 203,673 - 37,330,101
83,403,082 2,488,036 1,074,687 84,816,431
Net Depreciable Capital Assets 29,787,341 774,134 39,549 30,521,926
Net Capital Assets 72,303,151 5,920,573 193,401 78,030,323
Beginning
Balances
Restated
Depreciation expense was charged to governmental activities as follows:
General Government $ 149,024
Public Safety 924,012
Public Works 1,415,000
2,488,036
74
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 1,799,937 4,284,012 837,362 5,246,587
7,998,451 4,284,012 837,362 11,445,101
Depreciable Capital Assets
Buildings 11,170,610 11,077 - 11,181,687
Equipment and Vehicles 89,960 46,402 - 136,362
Land Improvements 1,966,485 - - 1,966,485
Infrastructure 78,939,022 2,536,907 - 81,475,929
92,166,077 2,594,386 - 94,760,463
Less Accumulated Depreciation
Buildings 10,508,225 62,310 - 10,570,535
Equipment and Vehicles 74,442 1,981 - 76,423
Land Improvements 1,966,485 - - 1,966,485
Infrastructure 42,240,188 1,588,305 - 43,828,493
54,789,340 1,652,596 - 56,441,936
Net Depreciable Capital Assets 37,376,737 941,790 - 38,318,527
Net Capital Assets 45,375,188 5,225,802 837,362 49,763,628
Beginning
Balances
Restated
Depreciation expense was charged to business-type activities as follows:
Water and Sewerage $ 1,588,305
Arboretum Golf 10,626
Buffalo Grove Golf 53,665
1,652,596
75
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $ 5,700,000 - 415,000 5,285,000
Debt
Service 3,645,000 - 300,000 3,345,000
Debt
Service 1,215,245 - 235,445 979,800
Debt
Service 24,000,000 - 1,600,000 22,400,000
34,560,245 - 2,550,445 32,009,800
Beginning
Balances
$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.
76
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $ 292,240 - 19,532 272,708
Beginning
BalancesIssue
$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.
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 $ 5,615,015 - 436,970 5,178,045
Beginning
BalancesIssue
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.
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.
77
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $ 1,281,769 125,542 62,771 1,344,540 268,908
Net Pension Liability - IMRF
Governmental Activities 5,160,476 - 4,484,897 675,579 -
Net Pension Liability - Police 26,620,107 - 6,835,676 19,784,431 -
Net Pension Liability - Firefighters'12,274,978 - 3,824,923 8,450,055 -
Total OPEB Liability - RBP 13,996,788 728,860 - 14,725,648 -
General Obligation Bonds 34,560,245 - 2,550,445 32,009,800 2,570,990
Plus: Unamortized Premium 2,790,520 - 187,740 2,602,780 -
96,684,883 854,402 17,946,452 79,592,833 2,839,898
Business-Type Activities
Compensated Absences 116,509 16,566 8,283 124,792 24,958
Net Pension Liability - IMRF 826,472 - 703,115 123,357 -
Total OPEB Liability - RBP 824,282 9,531 - 833,813 -
IEPA Loans Payable 292,240 - 19,532 272,708 19,983
Installment Note Payable 5,615,015 - 436,970 5,178,045 490,763
Asset Retirement Obligation 1,725,500 - - 1,725,500 -
9,400,018 26,097 1,167,900 8,258,215 535,704
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.
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.
78
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
LONG-TERM DEBT – Continued
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
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 - - - -
32,009,800 7,233,821 272,708 40,828 5,178,045 521,056
Installment
Note Payable
Business-Type ActivitiesGovernmental Activities
General Obligation IEPA
Fiscal Bonds Loan Payable
Year
Totals
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.
79
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
OPERATING LEASES
The Village has commitments with non-Village entities to lease certain property. Future minimum
rental commitments are as follows:
Fiscal
Year
2022 $138,917
2023 141,695
2024 144,529
425,141
Total
Payments
Lease
PROPERTY TAXES
Property taxes for 2020 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.
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, 2021, the Village owes Woodman’s Food Market, Inc. $437,583.
80
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
TAX ABATEMENTS – Continued
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, 2021 were $1,821,824.
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,
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, 2021 were
$144,344.
81
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
TAX ABATEMENTS – Continued
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, 2021 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 ofthat
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
82
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
TAX ABATEMENTS – Continued
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, 2021 were $681,262.
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.
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.
83
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued
FUND BALANCE/NET POSITION – Continued
Fund Balance Classifications – Continued
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 $124,965 - - - - - 124,965
Prepaids 458,477 - - - - - 458,477
583,442 - - - - - 583,442
Restricted
Seizure Funds 350,645 - - - - - 350,645
IMRF 514,540 - - - - - 514,540
Motor Fuel Tax - - - - - 3,780,893 3,780,893
Metra Parking Lot - - - - - 15,100 15,100
TIF - - - - - 11,833 11,833
Debt Service - 247,676 - - - - 247,676
Capital Projects - 7,985,104 - - - - 7,985,104
865,185 8,232,780 - - - 3,807,826 12,905,791
Committed
Capital Projects 14,326,113 - 41,307 798,521 17,745 - 15,183,686
Unassigned 22,485,209 - - - - - 22,485,209
Total Fund Balances 38,259,949 8,232,780 41,307 798,521 17,745 3,807,826 51,158,128
General
Capital Projects
84
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021:
Governmental Activities
Capital Assets - Net of Accumulated Depreciation $ 78,030,323
Plus: Unspent Bond Proceeds 7,985,104
Less Capital Related Debt:
General Obligation Bonds (32,009,800)
Unamortized Premium (2,602,780)
Net Investment in Capital Assets 51,402,847
Business-Type Activities
Capital Assets - Net of Accumulated Depreciation 49,763,628
Less Capital Related Debt:
IEPA Loans Payable (272,708)
Installment Note Payable (5,178,045)
Net Investment in Capital Assets 44,312,875
Restatement
Beginning net position was restated to reflect an error in recognition of capital assets for both the
governmental and business-type activities. Net position as originally reported and as restated is as
follows:
Net Position As Restated Increase
Governmental Activities $ 19,280,689 19,984,094 703,405
Business-Type Activities 55,340,713 56,130,713 790,000
Water and Sewerage 47,368,929 48,158,929 790,000
As Reported
85
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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.
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.
86
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Northwest Water Commission (NWWC) – Continued
The four members of NWWC and their percentage shares as of April 30, 2021 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 %
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, 2021:
Current Assets $18,690,589 Current Liabilities $ 769,589
Noncurrent Assets Noncurrent Liabilities -
Capital Assets 31,864,190
Total Liabilities 769,589
Total Assets 50,554,779
Net Position 49,785,190
87
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Northwest Water Commission (NWWC) – Continued
Summary of revenues, expenses and changes in net position for the year ended April 30, 2021:
Operating Revenues $ 11,230,964
Operating Expenses 10,655,496
Operating Income 575,468
Nonoperating Revenue (Expenses)120,686
Change in Net Position 696,154
Net Position - Beginning 49,089,036
Net Position - Ending 49,785,190
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.
NWWC 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.
88
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Northwest Water Commission (NWWC) – Continued
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 $1,856,787 to NWWC for the year
ended April 30, 2021. All payments were paid from the Water and Sewerage Fund. The Village’s share of
net position of NWWC was $8,782,108 at April 30, 2021.
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.
89
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
JOINT VENTURES – Continued
Solid Waste Agency of Northern Cook County (SWANCC) – Continued
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.
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
any statutory or constitutional limitation.
In accordance with the joint venture agreement, the Village remitted $908,620 to SWANCC for the
year ended December 31, 2021, 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.
90
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
The aggregate amount recognized for the three pension plans is:
Net Pension Deferred Deferred
Liability Outflows Inflows
IMRF $ (1,321,968) 798,936 2,788,704 5,897,753
Police Pension (62,654) 19,784,431 4,454,306 12,313,616
Firefighters' Pension (668,804) 8,450,055 3,659,202 9,795,621
(2,053,426) 29,033,422 10,902,212 28,006,990
Pension
(Revenue)
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.
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.
91
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Plan Descriptions – Continued
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.
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 123
Inactive Plan Members Entitled to but not yet Receiving Benefits 66
Active Plan Members 89
Total 278
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, 2021, the Village’s contribution was 13.26% of covered payroll.
Net Pension Liability. The Village’s net pension liability was measured as of December 31, 2020. 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, 2020, using the following actuarial methods and assumptions:
92
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Plan Descriptions – Continued
Actuarial Cost Method Entry Age
Normal
Asset Valuation Method Fair Value
Actuarial Assumptions
Interest Rate 7.25%
Salary Increases 2.85% to 13.75%
Cost of Living Adjustments 2.25%
Inflation 2.25%
For nondisabled retirees, the Pub-2010, Amount-Weighted, below-median income, General, Retiree,
Male (adjusted 106%) and Female (adjusted 105%) tables, and future mortality improvements projected
using scale MP-2020. For disabled retirees, the Pub-2010, Amount-Weighted, below-median income,
General, Disabled Retiree, Male and Female (both unadjusted) tables, and future mortality
improvements projected using scale MP-2020. For active members, the Pub-2010, Amount-Weighted,
below-median income, General, Employee, Male and Female (both unadjusted) tables, and future
mortality improvements projected using scale MP-2020.
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:
93
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
NOTE 4 – OTHER INFORMATION – Continued
EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued
Illinois Municipal Retirement Fund (IMRF) – Continued
Plan Descriptions – Continued
Long-Term
Expected Real
Asset Class Target Rate of Return
Fixed Income 28.00%1.30%
Domestic Equities 37.00%5.00%
International Equities 18.00%6.00%
Real Estate 9.00%6.20%
Blended 7.00% 2.85% - 6.95%
Cash and Cash Equivalents 1.00%0.70%
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)$ 9,218,380 798,936 (5,914,584)
1% Decrease 1% Increase
(6.25%)(8.25%)
94
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2019 $ 68,823,815 62,836,867 5,986,948
Changes for the Year:
Service Cost 941,942 - 941,942
Interest on the Total Pension Liability 4,904,123 - 4,904,123
Changes of Benefit Terms - - -
Difference Between Expected and Actual
Experience of the Total Pension Liability 980,313 - 980,313
Changes of Assumptions (738,149)- (738,149)
Contributions - Employer - 1,212,986 (1,212,986)
Contributions - Employees - 400,474 (400,474)
Net Investment Income - 8,789,950 (8,789,950)
Benefit Payments, including Refunds
of Employee Contributions (3,303,412) (3,303,412)-
Other (Net Transfer)- 872,831 (872,831)
Net Changes 2,784,817 7,972,829 (5,188,012)
Balances at December 31, 2020 71,608,632 70,809,696 798,936
95
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the Village recognized pension revenue of $1,321,968. At
December 31, 2021, 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 $ 1,146,557 - 1,146,557
Change in Assumptions 512,358 (665,969) (153,611)
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - (5,231,784) (5,231,784)
Total Pension Expense to be
Recognized in Future Periods 1,658,915 (5,897,753) (4,238,838)
Pension Contributions Made Subsequent
to the Measurement Date 1,129,789 - 1,129,789
Total Deferred Amounts Related to IMRF 2,788,704 (5,897,753) (3,109,049)
Deferred
Outflows of
Resources
$1,129,789 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, 2022. 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
2022 $ (1,008,168)
2023 (356,360)
2024 (2,024,496)
2025 (849,814)
2026 -
Thereafter -
Total (4,238,838)
96
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the measurement date, membership consisted of the
following:
Inactive Plan Members Currently Receiving Benefits 61
Inactive Plan Members Entitled to but not yet Receiving Benefits 10
Active Plan Members 58
Total 129 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.
97
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the Village’s contribution was 50.55% 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,
2021, 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%
98
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 $ 36,915,182 19,784,431 5,867,390
1% Decrease 1% Increase
(6.00%)(8.00%)
99
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2020 $ 111,111,390 84,491,283 26,620,107
Changes for the Year:
Service Cost 1,833,711 - 1,833,711
Interest on the Total Pension Liability 7,526,496 - 7,526,496
Changes of Benefit Terms - - -
Difference Between Expected and Actual
Experience of the Total Pension Liability 2,734,913 - 2,734,913
Changes of Assumptions 105,796 - 105,796
Contributions - Employer - 3,333,876 (3,333,876)
Contributions - Employees - 702,138 (702,138)
Contributions - Other - - -
Net Investment Income - 15,052,674 (15,052,674)
Benefit Payments, including Refunds
of Employee Contributions (5,271,645) (5,271,645)-
Administrative Expense - (52,096) 52,096
Net Changes 6,929,271 13,764,947 (6,835,676)
Balances at December 31, 2021 118,040,661 98,256,230 19,784,431
100
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the Village recognized pension revenue of $62,654. At
December 31, 2021, 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 $ 3,562,336 (33,883) 3,528,453
Change in Assumptions 891,970 (1,058,441) (166,471)
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - (11,221,292) (11,221,292)
Total Deferred Amounts Related to Police Pension 4,454,306 (12,313,616) (7,859,310)
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
2022 $ (2,226,980)
2023 (3,231,744)
2024 (1,441,830)
2025 (1,054,815)
2026 96,059
Thereafter -
Total (7,859,310)
Net Deferred
(Inflows)
of Resources
Outflows/
101
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the measurement date, membership consisted of the
following:
Inactive Plan Members Currently Receiving Benefits 50
Inactive Plan Members Entitled to but not yet Receiving Benefits 4
Active Plan Members 54
Total 108
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.
102
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the Village’s contribution was 40.55% 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.
103
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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,
2021, 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%
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.
104
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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/(Asset)$ 22,042,320 8,450,055 (2,635,023)
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, 2020 $ 89,400,865 77,125,887 12,274,978
Changes for the Year:
Service Cost 1,597,174 - 1,597,174
Interest on the Total Pension Liability 6,039,849 - 6,039,849
Changes of Benefit Terms - - -
Difference Between Expected and Actual
Experience of the Total Pension Liability 1,911,008 - 1,911,008
Changes of Assumptions 81,975 - 81,975
Contributions - Employer - 2,370,805 (2,370,805)
Contributions - Employees - 554,144 (554,144)
Net Investment Income - 10,590,082 (10,590,082)
Benefit Payments, including Refunds
of Employee Contributions (4,182,238) (4,182,238)-
Administrative Expense - (60,102) 60,102
Net Changes 5,447,768 9,272,691 (3,824,923)
Balances at December 31, 2021 94,848,633 86,398,578 8,450,055
105
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the Village recognized pension revenue of $668,804. At
December 31, 2021, 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 $ 2,653,141 (295,067) 2,358,074
Change in Assumptions 1,006,061 (503,768) 502,293
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - (8,996,786) (8,996,786)
Total Deferred Amounts Related to Firefighters' Pension 3,659,202 (9,795,621) (6,136,419)
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
2022 $ (1,689,889)
2023 (3,136,378)
2024 (1,673,611)
2025 (516,091)
2026 505,658
Thereafter 373,892
Total (6,136,419)
Net Deferred
(Inflows)
of Resources
Outflows/
106
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, 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, 2021, and was determined by an
actuarial valuation as of December 31, 2020.
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:
107
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 3.50%
Discount Rate 1.84%
Healthcare Cost Trend Rates
Retirees' Share of Benefit-Related Costs 100% of Benefit-Related Costs
5.75% for 2020,decreasing to an ultimate rate
of 4.50% for 2026 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, 2020 $ 14,821,070
Changes for the Year:
Service Cost 630,551
Interest on the Total Pension Liability 290,591
Changes of Benefit Terms -
Difference Between Expected and Actual Experience -
Changes of Assumptions or Other Inputs 400,334
Benefit Payments (583,085)
Net Changes 738,391
Balance at December 31, 2021 15,559,461
Total
OPEB
Liability
108
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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 1.84%, while the prior valuation used
2.00%. 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
(0.84%) (1.84%) (2.84%)
Total OPEB Liability $ 18,218,799 15,559,461 13,471,652
1% Decrease
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
(5.75% (6.75%
decreasing to decreasing to
4.50%) 5.50%)
Total OPEB Liability $ 13,184,498 15,559,461 18,665,623
3.50%)
(4.75%
decreasing to
109
VILLAGE OF BUFFALO GROVE, ILLINOIS
Notes to the Financial Statements
December 31, 2021
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, 2021, the Village recognized OPEB expense of $1,442,935. At
December 31, 2021, 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 $ 1,312,871 - 1,312,871
Change in Assumptions 3,027,908 (456,197) 2,571,711
Net Difference Between Projected and Actual
Earnings on Pension Plan Investments - - -
Total Deferred Amounts Related to OPEB 4,340,779 (456,197) 3,884,582
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
2022 $ 521,793
2023 521,793
2024 521,793
2025 521,793
2026 521,793
Thereafter 1,275,617
Total 3,884,582
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 $5,510,612 to be
received in two installments. On September 1, 2021 the Village received their first installment of
$2,742,462. As of the date of these financial statements, the Village has not received their second
installment.
110
• 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.
111
VILLAGE OF BUFFALO GROVE, ILLINOIS
Illinois Municipal Retirement Fund
Required Supplementary Information
Schedule of Employer Contributions
December 31, 2021
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%
2021 1,129,789 1,129,789 - 8,520,279 13.26%
Notes to the Required Supplementary Information:
Actuarial Cost Method Entry Age Normal
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 23 Years
Asset Valuation Method 5-Year Smoothed Market
Inflation 2.50%
Salary Increases 3.35% - 14.25%
Investment Rate of Return 7.25%
Retirement Age See the Notes to the Financial Statements
Mortality
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).
Contributions
in Relation to
the Actuarially
Determined
Contribution
112
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Required Supplementary Information
Schedule of Employer Contributions
December 31, 2021
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%
2021 3,361,940 3,333,876 (28,064)6,594,984 50.55%
Notes to the Required Supplementary Information:
Actuarial Cost Method Entry Age Normal
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 19 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
Contributions
in Relation to
the Actuarially
Payroll
Covered
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
113
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Required Supplementary Information
Schedule of Employer Contributions
December 31, 2021
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%
2021 2,390,386 2,370,805 (19,581)5,846,393 40.55%
Notes to the Required Supplementary Information:
Actuarial Cost Method Entry Age Normal
Amortization Method Level % Pay (Closed)
Remaining Amortization Period 19 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 (7% at 50 to 100% at age 65)
Mortality
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
Contributions
in Relation to
Actuarially the Actuarially Contribution
114
VILLAGE OF BUFFALO GROVE, ILLINOIS
Illinois Municipal Retirement Fund
Required Supplementary Information
Schedule of Changes in the Employer's Net Pension Liability
December 31, 2021
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
115
12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20
860,654 871,953 858,070 843,915 908,935 941,942
4,031,299 4,310,485 4,434,597 4,483,157 4,689,245 4,904,123
1,338,146 (921,372) 40,460 582,645 492,814 980,313
145,117 (220,386) (1,963,662) 1,849,878 - (738,149)
(2,416,367) (2,582,301) (2,637,150) (2,792,678) (2,983,908) (3,303,412)
3,958,849 1,458,379 732,315 4,966,917 3,107,086 2,784,817
54,600,269 58,559,118 60,017,497 60,749,812 65,716,729 68,823,815
58,559,118 60,017,497 60,749,812 65,716,729 68,823,815 71,608,632
1,093,142 1,112,901 1,164,635 1,218,342 1,053,229 1,212,986
402,168 428,936 377,312 394,144 421,491 400,474
241,715 3,350,903 8,949,122 (2,997,666) 10,038,062 8,789,950
(2,416,367) (2,582,301) (2,637,150) (2,792,678) (2,983,908) (3,303,412)
520,582 (346,357) (974,388) 938,575 58,920 872,831
(158,760) 1,964,082 6,879,531 (3,239,283) 8,587,794 7,972,829
48,803,503 48,644,743 50,608,825 57,488,356 54,249,073 62,836,867
48,644,743 50,608,825 57,488,356 54,249,073 62,836,867 70,809,696
9,914,375 9,408,672 3,261,456 11,467,656 5,986,948 798,936
83.07%84.32%94.63%82.55%91.30%98.88%
8,157,772 8,023,803 8,384,700 8,758,756 9,272,947 8,899,385
121.53%117.26%38.90%130.93%64.56%8.98%
116
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Required Supplementary Information
Schedule of Changes in the Employer's Net Pension Liability
December 31, 2021
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.
117
2015 2016 2017 2018 2019 2020 2021
1,386,660 1,534,051 1,637,139 1,628,794 1,649,198 1,978,338 1,833,711
5,438,273 5,861,687 6,171,179 6,489,093 6,772,474 7,214,313 7,526,496
(1,015,708) 358,140 353,405 (92,557) 1,380,756 832,348 2,734,913
4,811,344 170,816 (3,590,403) - 1,501,809 (639,813) 105,796
- - - - 425,172 - -
(2,969,657) (3,283,543) (3,602,086) (3,803,918) (4,150,161) (4,677,746) (5,271,645)
7,650,912 4,641,151 969,234 4,221,412 7,579,248 4,707,440 6,929,271
81,341,993 88,992,905 93,634,056 94,603,290 98,824,702 106,403,950 111,111,390
88,992,905 93,634,056 94,603,290 98,824,702 106,403,950 111,111,390 118,040,661
2,284,315 2,430,017 2,524,306 2,668,632 2,899,820 3,095,593 3,333,876
669,077 622,198 627,548 674,488 660,350 820,098 702,138
- - 117,147 28,742 83,945 - -
186,635 3,418,114 8,300,527 (2,726,611) 13,161,796 8,491,232 15,052,674
(2,969,657) (3,283,543) (3,602,086) (3,803,919) (4,150,161) (4,677,746) (5,271,645)
(39,870) (43,969) (62,733) (51,073) (59,767) (56,614) (52,096)
130,500 3,142,817 7,904,709 (3,209,741) 12,595,983 7,672,563 13,764,947
56,254,452 56,384,952 59,527,769 67,432,478 64,222,737 76,818,720 84,491,283
56,384,952 59,527,769 67,432,478 64,222,737 76,818,720 84,491,283 98,256,230
32,607,953 34,106,287 27,170,812 34,601,965 29,585,230 26,620,107 19,784,431
63.36%63.57%71.28%64.99%72.20%76.04%83.24%
6,056,962 6,406,672 6,565,793 6,738,022 6,957,008 7,316,636 6,594,984
538.35%532.36%413.82%513.53%425.26%363.83%299.99%
118
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Required Supplementary Information
Schedule of Changes in the Employer's Net Pension Liability
December 31, 2021
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.
119
2015 2016 2017 2018 2019 2020 2021
1,179,270 1,260,242 1,348,459 1,325,255 1,264,639 1,621,266 1,591,437
4,508,473 4,757,917 4,961,836 5,226,040 5,477,561 5,825,574 6,039,648
(1,080,688) (133,067) 204,895 234,796 1,246,145 (121,525) 1,916,946
1,139,953 (588,791) - - 1,195,177 (453,769) 81,975
- - - - 640,951 - -
(2,141,668) (2,225,410) (2,540,912) (2,940,773) (3,445,092) (3,823,483) (4,182,238)
3,605,340 3,070,891 3,974,278 3,845,318 6,379,381 3,048,063 5,447,768
65,477,594 69,082,934 72,153,825 76,128,103 79,973,421 86,352,802 89,400,865
69,082,934 72,153,825 76,128,103 79,973,421 86,352,802 89,400,865 94,848,633
2,202,138 2,166,040 1,863,911 1,897,968 1,915,164 2,019,305 2,370,805
524,714 516,422 520,184 533,534 542,215 535,959 554,144
- - 588 - - - -
654,625 3,415,513 7,601,179 (2,917,744) 11,064,141 10,436,145 10,590,082
(2,141,668) (2,225,410) (2,540,912) (2,940,773) (3,445,092) (3,823,483) (4,182,238)
(48,363) (42,284) (60,925) (75,110) (104,664) (74,148) (60,102)
1,191,446 3,830,281 7,384,025 (3,502,125) 9,971,764 9,093,778 9,272,691
49,156,718 50,348,164 54,178,445 61,562,470 58,060,345 68,032,109 77,125,887
50,348,164 54,178,445 61,562,470 58,060,345 68,032,109 77,125,887 86,398,578
18,734,770 17,975,380 14,565,633 21,913,076 18,320,693 12,274,978 8,450,055
72.88%75.09%80.87%72.60%78.78%86.27%91.09%
5,308,713 5,390,509 5,585,881 5,836,466 6,026,152 5,890,818 5,846,393
352.91%333.46%260.76%375.45%304.02%208.37%144.53%
120
VILLAGE OF BUFFALO GROVE, ILLINOIS
Police Pension Fund
Required Supplementary Information
Schedule of Investment Returns
December 31, 2021
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%
2021 17.79%
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
121
VILLAGE OF BUFFALO GROVE, ILLINOIS
Firefighters' Pension Fund
Required Supplementary Information
Schedule of Investment Returns
December 31, 2021
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%
2021 13.76%
Note: This schedule is intended to show information for ten years. Information for additional years will be
displayed as it becomes available.
122
VILLAGE OF BUFFALO GROVE, ILLINOIS
Retiree Benefit Plan
Required Supplementary Information
Schedule of Changes in the Employer's Total OPEB Liability
December 31, 2021
2019 2020 2021
Total OPEB Liability
Service Cost $298,851 263,570 525,258 630,551
Interest 321,987 360,862 304,253 290,591
Changes in Benefit Terms - - - -
Differences Between Expected and Actual Experience - - 1,668,331 -
Change of Assumptions or Other Inputs (774,109) 2,158,863 1,494,795 400,334
Benefit Payments (389,489) (409,592) (551,381) (583,085)
Net Change in Total OPEB Liability (542,760) 2,373,703 3,441,256 738,391
Total OPEB Liability - Beginning 9,548,871 9,006,111 11,379,814 14,821,070
Total OPEB Liability - Ending 9,006,111 11,379,814 14,821,070 15,559,461
Covered-Employee Payroll $21,900,270 22,925,736 19,323,659 20,861,759
Total OPEB Liability as a Percentage
of Covered-Employee Payroll 41.12%49.64%76.70%74.58%
Notes:
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75.
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 through 2021.
123
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, 2021
Final
Budget Actual
Revenues
Property Taxes $16,712,894 16,712,894 16,524,993
Other Taxes 10,285,256 10,285,256 12,777,682
Intergovernmental 12,854,480 12,854,480 17,738,817
Charges for Services 2,348,540 2,348,540 3,294,828
Licenses and Permits 355,600 355,600 301,917
Fines and Forfeitures 1,544,600 1,544,600 2,205,658
Interest 143,500 143,500 (40,060)
Miscellaneous 1,055,810 1,055,810 2,210,580
Total Revenues 45,300,680 45,300,680 55,014,415
Expenditures
Current
General Government 8,643,181 8,643,181 8,707,739
Public Safety 28,829,663 28,829,663 29,352,949
Public Works 7,067,623 7,067,623 6,324,738
Capital Outlay 70,000 70,000 175,376
Total Expenditures 44,610,467 44,610,467 44,560,802
Excess (Deficiency) of Revenues
Over (Under) Expenditures 690,213 690,213 10,453,613
Other Financing Sources (Uses)
Disposal of Capital Assets - - 13,500
Transfers In 1,780,000 1,780,000 1,431,386
Transfers Out (4,566,155)(4,566,155)(4,157,028)
(2,786,155)(2,786,155)(2,712,142)
Net Change in Fund Balance (2,095,942)(2,095,942)7,741,471
Fund Balance - Beginning 30,518,478
Fund Balance - Ending 38,259,949
Budget
Original
124
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.
125
DEBT SERVICE 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
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
126
Street Maintenance Fund
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.
INDIVIDUAL FUND SCHEDULES
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.
127
The Buffalo Grove Golf Fund is used to account for revenue and expenses associated with operating the
Village's 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 areas and public areas.
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
128
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 of 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
129
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, 2021
Final
Budget Actual
Revenues
Taxes
Property Taxes $402,648 402,648 414,823
Interest - - 6,287
Total Revenues 402,648 402,648 421,110
Expenditures
Debt Service
Principal Retirement 2,550,445 2,550,445 2,550,445
Interest and Fiscal Charges 1,203,614 1,203,614 1,200,773
Total Expenditures 3,754,059 3,754,059 3,751,218
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,351,411)(3,351,411)(3,330,108)
Other Financing Sources (Uses)
Transfers In 3,346,411 3,346,411 3,346,411
Transfers Out (11,390,948)(11,390,948)(8,612,990)
(8,044,537)(8,044,537)(5,266,579)
Net Change in Fund Balance (11,395,948)(11,395,948)(8,596,687)
Fund Balance - Beginning 16,829,467
Fund Balance - Ending 8,232,780
Budget
Original
130
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, 2021
Final
Budget Actual
Revenues
None $- - -
Expenditures
Capital Outlay 159,000 159,000 138,190
Excess (Deficiency) of Revenues
Over (Under) Expenditures (159,000)(159,000)(138,190)
Other Financing Sources
Transfers In 159,000 159,000 138,190
Net Change in Fund Balance - - -
Fund Balance - Beginning 41,307
Fund Balance - Ending 41,307
Original
Budget
131
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, 2021
Final
Budget Actual
Revenues
Intergovernmental $- - 730,709
Expenditures
Capital Outlay 7,634,626 7,634,626 6,482,065
Excess (Deficiency) of Revenues
Over (Under) Expenditures (7,634,626)(7,634,626)(5,751,356)
Other Financing Sources
Transfers In 7,634,626 7,634,626 6,308,126
Net Change in Fund Balance - - 556,770
Fund Balance - Beginning 241,751
Fund Balance - Ending 798,521
Original
Budget
132
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, 2021
Final
Budget Actual
Revenues
None $- - -
Expenditures
Capital Outlay 1,969,850 1,969,850 1,705,147
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,969,850)(1,969,850)(1,705,147)
Other Financing Sources
Transfers In 1,969,850 1,969,850 1,705,147
Net Change in Fund Balance - - -
Fund Balance - Beginning 17,745
Fund Balance - Ending 17,745
Original
Budget
133
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2021
Local Lake Metra
Motor Cook Parking
Fuel Tax Road TIF Lot Totals
Cash and Investments $3,400,209 226,375 66,774 15,196 3,708,554
Receivables - Net of Allowances
Other 154,309 - - - 154,309
Total Assets 3,554,518 226,375 66,774 15,196 3,862,863
Accounts Payable - - - 96 96
Due to Other Funds - - 54,941 - 54,941
Total Liabilities - - 54,941 96 55,037
Restricted 3,554,518 226,375 11,833 15,100 3,807,826
Total Liabilities and Fund Balances 3,554,518 226,375 66,774 15,196 3,862,863
Special Revenue
FUND BALANCES
Motor
Fuel
Tax
ASSETS
LIABILITIES
134
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, 2021
Local Lake Metra
Motor Cook Parking
Fuel Tax Road TIF Lot Totals
Revenues
Taxes $- - 30,841 - 30,841
Intergovernmental 2,587,872 486,775 - - 3,074,647
Charges for Services - - - - -
Fines and Forfeitures - - - 15,617 15,617
Total Revenues 2,587,872 486,775 30,841 15,617 3,121,105
Expenditures
Current
General Government - - 19,008 192,587 211,595
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,587,872 486,775 11,833 (176,970)2,909,510
Other Financing Sources (Uses)
Transfers In - - - 150,000 150,000
Transfers Out (1,783,030)(481,950)- - (2,264,980)
(1,783,030)(481,950)- 150,000 (2,114,980)
Net Change in Fund Balances 804,842 4,825 11,833 (26,970)794,530
Fund Balances - Beginning 2,749,676 221,550 - 42,070 3,013,296
Fund Balances - Ending 3,554,518 226,375 11,833 15,100 3,807,826
Motor
Fuel
Tax
Special Revenue
135
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, 2021
Final
Budget Actual
Revenues
Intergovernmental
Motor Fuel Tax $1,600,000 1,600,000 1,676,289
Grants 911,600 911,600 911,583
Total Revenue 2,511,600 2,511,600 2,587,872
Expenditures
Current
None - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,511,600 2,511,600 2,587,872
Other Financing (Uses)
Transfers Out (2,153,139)(2,153,139)(1,783,030)
Net Change in Fund Balance 358,461 358,461 804,842
Fund Balance - Beginning 2,749,676
Fund Balance - Ending 3,554,518
Original
Budget
136
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, 2021
Final
Budget Actual
Revenues
Intergovernmental
Local Motor Fuel Tax $485,000 485,000 486,775
Expenditures
None - - -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 485,000 485,000 486,775
Other Financing (Uses)
Transfers Out (481,950)(481,950)(481,950)
Net Change in Fund Balance 3,050 3,050 4,825
Fund Balance - Beginning 221,550
Fund Balance - Ending 226,375
Original
Budget
137
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, 2021
Final
Budget Actual
Revenues
Charges for Services $400 400 -
Fines and Forfeitures 60,000 60,000 15,617
Total Revenues 60,400 60,400 15,617
Expenditures
Current
General Government 196,917 196,917 192,587
Excess (Deficiency) of Revenues
Over (Under) Expenditures (136,517)(136,517)(176,970)
Other Financing Sources
Transfers In 125,000 125,000 150,000
Net Change in Fund Balance (11,517)(11,517)(26,970)
Fund Balance - Beginning 42,070
Fund Balance - Ending 15,100
Budget
Original
138
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, 2021
Final
Budget Actual
Operating Revenues
Charges for Services
Water and Sewer Charges $14,621,258 14,621,258 15,399,503
Connection and Recapture Fees 106,000 106,000 509,660
Miscellaneous 20,000 20,000 417,516
Total Operating Revenues 14,747,258 14,747,258 16,326,679
Operating Expenses
Operations
Water 2,337,807 2,337,807 1,842,533
Sewer 4,603,073 4,603,073 5,016,963
Water Purchases 1,725,000 1,725,000 1,856,787
Capital Outlay 7,491,105 7,491,105 6,108,876
Total Operating Expenses 16,156,985 16,156,985 14,825,159
Operating Income (Loss)(1,409,727)(1,409,727)1,501,520
Nonoperating Revenue (Expenses)
Interest Income 39,696 39,696 394,698
Interest Expense (134,968)(134,968)(134,968)
(95,272)(95,272)259,730
Income (Loss) Before Contributions and Transfers (1,504,999)(1,504,999)1,761,250
Transfers In 6,089,461 6,089,461 4,267,894
Transfers Out (2,441,950)(2,441,950)(2,241,950)
3,647,511 3,647,511 2,025,944
Income Before GAAP Adjustments 2,142,512 2,142,512 3,787,194
Beginning Net Position - Budgetary Basis 5,085,813
Ending Net Position - Budgetary Basis 8,873,007
Original
Budget
139
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, 2021
Final
Budget Actual
Income Before GAAP Adjustments $2,142,512 2,142,512 3,787,194
GAAP Adjustments
Capitalized Assets - - 6,029,959
Depreciation and Amortization - - (1,715,455)
- - 4,314,504
Change in Net Position 2,142,512 2,142,512 8,101,698
Net Position - Beginning as Restated 48,158,929
Net Position - Ending 56,260,627
Original
Budget
140
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, 2021
Final
Budget Actual
Operating Revenues
Charges for Services
Daily Greens Fee and Membership $818,000 818,000 1,018,931
Merchandise Sales 56,160 56,160 59,281
Cart, Club and Other Rentals 224,650 224,650 229,917
Miscellaneous (53,800)(53,800)40,402
Total Operating Revenues 1,045,010 1,045,010 1,348,531
Operating Expenses
Operations
Golf Operations 1,228,029 1,228,029 1,471,732
Cost of Sales - Pro Shop 45,000 45,000 56,842
Total Operating Expenses 1,273,029 1,273,029 1,528,574
(Loss) Before Transfers (228,019)(228,019)(180,043)
Transfers In 129,794 129,794 129,794
Income Before GAAP Adjustments (98,225)(98,225)(50,249)
Beginning Net Position - Budgetary Basis 885,718
Ending Net Position - Budgetary Basis 835,469
Original
Budget
141
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, 2021
Final
Budget Actual
Income Before GAAP Adjustments $(98,225)(98,225)(50,249)
GAAP Adjustments
Capitalized Assets - - 11,077
Depreciation - - (10,626)
- - 451
Change in Net Position (98,225)(98,225)(49,798)
Net Position - Beginning 6,132,251
Net Position - Ending 6,082,453
Original
Budget
142
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Net Position
December 31, 2021
Refuse
Service Totals
ASSETS
Current Assets
Cash and Investments $548,270 275,771 824,041
Inventories 9,626 - 9,626
Total Current Assets 557,896 275,771 833,667
Noncurrent Assets
Capital Assets
Nondepreciable 978,776 - 978,776
Depreciable 3,236,208 - 3,236,208
Accumulated Depreciation (2,622,595)- (2,622,595)
Total Noncurrent Assets 1,592,389 - 1,592,389
Total Assets 2,150,285 275,771 2,426,056
Deferred Items - IMRF 69,914 - 69,914
Deferred Items - RBP 19,477 - 19,477
Total Deferred Outflows of Resources 89,391 - 89,391
Total Assets and Deferred Outflows of Resources 2,239,676 275,771 2,515,447
Buffalo Grove
Golf
DEFERRED OUTFLOWS OF RESOURCES
143
Refuse
Service Totals
LIABILITIES
Current Liabilities
Accounts Payable $12,147 96,090 108,237
Accrued Payroll 7,513 - 7,513
Compensated Absences Payable 10,013 - 10,013
Total Current Liabilities 29,673 96,090 125,763
Noncurrent Liabilities
Compensated Absences Payable 40,054 - 40,054
Net Pension Liability - IMRF 20,030 - 20,030
Total OPEB Liability - RBP 69,816 - 69,816
Total Noncurrent Liabilities 129,900 - 129,900
Total Liabilities 159,573 96,090 255,663
Deferred Items - IMRF 147,859 - 147,859
Deferred Items - RBP 2,047 - 2,047
Total Deferred Inflows of Resources 149,906 - 149,906
Total Liabilities and Deferred Inflow of Resources 309,479 96,090 405,569
Investment in Capital Assets 1,592,389 - 1,592,389
Unrestricted 337,808 179,681 517,489
Total Net Position 1,930,197 179,681 2,109,878
Total Liabilities, Deferred Inflows of Resources,
and Net Position 2,239,676 275,771 2,515,447
NET POSITION
DEFERRED INFLOWS OF RESOURCES
Buffalo Grove
Golf
144
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, 2021
Refuse
Service Totals
Operating Revenues
Charges for Services $1,494,672 1,122,716 2,617,388
Operating Expenses
Operations
Golf Operations 1,135,226 - 1,135,226
Cost of Sales - Pro Shop 37,777 - 37,777
Capital Outlay 11,755 - 11,755
Refuse - 908,620 908,620
Depreciation 53,665 - 53,665
Total Operating Expenses 1,238,423 908,620 2,147,043
Income Before Transfers 256,249 214,096 470,345
Transfers Out - (200,000)(200,000)
Change in Net Position 256,249 14,096 270,345
Net Position - Beginning 1,673,948 165,585 1,839,533
Net Position - Ending 1,930,197 179,681 2,109,878
Buffalo Grove
Golf
145
VILLAGE OF BUFFALO GROVE, ILLINOIS
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2021
Refuse
Service Totals
Cash Flows from Operating Activities
Receipts from Customers and Users $1,511,454 1,122,716 2,634,170
Payments to Employees (282,270)- (282,270)
Payments to Suppliers (881,065)(827,460)(1,708,525)
348,119 295,256 643,375
Cash Flows from Noncapital Financing Activities
Transfers Out - (200,000)(200,000)
Net Change in Cash and Cash Equivalents 348,119 95,256 443,375
Cash and Cash Equivalents - Beginning 200,151 180,515 380,666
Cash and Cash Equivalents - Ending 548,270 275,771 824,041
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income 256,249 214,096 470,345
Adjustments to Reconcile Operating Income to Net Income
to Net Cash Provided by (Used in) Operating Activities
Depreciation and Amortization Expense 53,665 - 53,665
Other Income (Expense)25,326 - 25,326
(Increase) Decrease in Current Assets 16,782 - 16,782
Increase (Decrease) in Current Liabilities (3,903)81,160 77,257
Net Cash Provided by Operating Activities 348,119 295,256 643,375
Buffalo Grove
Golf
146
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, 2021
Final
Budget Actual
Operating Revenues
Charges for Services
Daily Greens Fee and Membership $734,000 734,000 972,573
Merchandise Sales 73,700 73,700 51,214
Cart, Club and Other Rentals 271,700 271,700 294,543
Driving Range Fees 71,000 71,000 124,384
Miscellaneous 30,000 30,000 51,958
Total Operating Revenues 1,180,400 1,180,400 1,494,672
Operating Expenses
Operations
Golf Operations 1,056,354 1,056,354 1,135,226
Cost of Sales - Pro Shop 45,000 45,000 37,777
Capital Outlay 5,000 5,000 11,755
Total Operating Expenses 1,106,354 1,106,354 1,184,758
Income Before GAAP Adjustments 74,046 74,046 309,914
Beginning Net Position - Budgetary Basis 1,113,935
Ending Net Position - Budgetary Basis 1,423,849
Original
Budget
147
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, 2021
Final
Budget Actual
Income Before GAAP Adjustments $74,046 74,046 309,914
GAAP Adjustments
Depreciation - - (53,665)
Change in Net Position 74,046 74,046 256,249
Net Position - Beginning 1,673,948
Net Position - Ending 1,930,197
Original
Budget
148
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, 2021
Final
Budget Actual
Operating Revenues
Charges for Services
SWANCC User Fees $1,085,000 1,085,000 1,122,716
Operating Expenses
Operations
Refuse 837,663 837,663 908,620
Income Before Transfers 247,337 247,337 214,096
Transfers Out (200,000)(200,000)(200,000)
Change in Net Position 47,337 47,337 14,096
Net Position - Beginning 165,585
Net Position - Ending 179,681
Original
Budget
149
VILLAGE OF BUFFALO GROVE, ILLINOIS
Internal Service Funds
Combining Statement of Net Position
December 31, 2021
Central Building
Garage Maintenance Totals
Current Assets
Cash and Investments $71,281 114,730 164,373 350,384
LIABILITIES
Current Liabilities
Accounts Payable 70,491 83,721 86,859 241,071
Accrued Payroll - 25,916 22,690 48,606
Total Liabilities 70,491 109,637 109,549 289,677
Unrestricted 790 5,093 54,824 60,707
Total Liabilities and Net Position 71,281 114,730 164,373 350,384
Information
ASSETS
NET POSITION
Technology
150
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, 2021
Central Building
Garage Maintenance Totals
Operating Revenues
Interfund Services $1,572,786 1,645,138 1,725,825 4,943,749
Operating Expenses
Operations
Information Technology 1,572,786 - - 1,572,786
Central Garage - 1,645,138 - 1,645,138
Building Maintenance - - 1,678,259 1,678,259
Total Operating Expenses 1,572,786 1,645,138 1,678,259 4,896,183
Change in Net Position - - 47,566 47,566
Net Position - Beginning 790 5,093 7,258 13,141
Net Position - Ending 790 5,093 54,824 60,707
Information
Technology
151
VILLAGE OF BUFFALO GROVE, ILLINOIS
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended December 31, 2021
Central Building
Garage Maintenance Totals
Cash Flows from Operating Activities
Interfund Services Provided $1,572,786 1,645,138 1,725,825 4,943,749
Payments to Suppliers (1,679,122)(1,092,560)(1,343,110)(4,114,792)
Payments to Employees - (551,350)(452,263)(1,003,613)
(106,336)1,228 (69,548)(174,656)
Cash and Cash Equivalents - Beginning 177,617 113,502 233,921 525,040
Cash and Cash Equivalents - Ending 71,281 114,730 164,373 350,384
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating Income - - 47,566 47,566
Adjustments to Reconcile Operating Income
to Net Cash Provided by (Used in)
Operating Activities
Increase (Decrease) in Current
Liabilities (106,336)1,228 (117,114)(222,222)
Net Cash Provided by Operating Activities (106,336)1,228 (69,548)(174,656)
Technology
Information
152
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, 2021
Final
Budget Actual
Operating Revenues
Interfund Services $1,637,111 1,637,111 1,572,786
Operating Expenses
Operations
Information Technology 1,637,111 1,637,111 1,572,786
Change in Net Position - - -
Net Position - Beginning 790
Net Position - Ending 790
Original
Budget
153
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, 2021
Final
Budget Actual
Operating Revenues
Interfund Services $1,524,802 1,524,802 1,645,138
Operating Expenses
Operations
Central Garage 1,524,802 1,524,802 1,645,138
Change in Net Position - - -
Net Position - Beginning 5,093
Net Position - Ending 5,093
Original
Budget
154
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, 2021
Final
Budget Actual
Operating Revenues
Interfund Services $1,784,915 1,784,915 1,725,825
Operating Expenses
Operations
Building Maintenance 1,681,215 1,681,215 1,678,259
Change in Net Position 103,700 103,700 47,566
Net Position - Beginning 7,258
Net Position - Ending 54,824
Original
Budget
155
VILLAGE OF BUFFALO GROVE, ILLINOIS
Pension Trust Funds
Combining Statement of Fiduciary Net Position
December 31, 2021
Firefighters'
Pension Totals
Cash and Cash Equivalents $3,320,835 2,335,786 5,656,621
Investments
U.S. Treasury Obligations 8,239,761 2,550,371 10,790,132
U.S. Agency Obligations 7,393,727 13,860,703 21,254,430
Corporate Bonds 9,291,226 5,803,222 15,094,448
State and Local Obligations - 3,648,789 3,648,789
Mutual Funds 38,871,210 58,033,339 96,904,549
Equity Securities 31,064,401 - 31,064,401
Receivables - Net of Allowance
Accrued Interest 96,754 143,982 240,736
Due from Other Funds 35,328 25,144 60,472
Prepaids 795 - 795
Total Assets 98,314,037 86,401,336 184,715,373
Accounts Payable 57,807 2,758 60,565
Net Position Restricted for Pensions 98,256,230 86,398,578 184,654,808
Pension
ASSETS
LIABILITIES
NET POSITION
Police
156
VILLAGE OF BUFFALO GROVE, ILLINOIS
Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended December 31, 2021
Police Firefighters'
Pension Pension Totals
Additions
Contributions - Employer $3,333,876 2,370,805 5,704,681
Contributions - Plan Members 702,138 554,144 1,256,282
Total Contributions 4,036,014 2,924,949 6,960,963
Investment Income
Interest Earned 1,504,432 2,138,033 3,642,465
Net Change in Fair Value 13,775,429 8,553,078 22,328,507
15,279,861 10,691,111 25,970,972
Less Investment Expenses (227,187)(101,029)(328,216)
Net Investment Income 15,052,674 10,590,082 25,642,756
Total Additions 19,088,688 13,515,031 32,603,719
Deductions
Administration 52,096 60,102 112,198
Benefits and Refunds 5,271,645 4,182,238 9,453,883
Total Deductions 5,323,741 4,242,340 9,566,081
Change in Fiduciary Net Position 13,764,947 9,272,691 23,037,638
Net Position Restricted for Pensions
Beginning 84,491,283 77,125,887 161,617,170
Ending 98,256,230 86,398,578 184,654,808
157
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, 2021
Final
Budget Actual
Additions
Contributions - Employer $3,361,940 3,361,940 3,333,876
Contributions - Plan Members 750,000 750,000 702,138
Total Contributions 4,111,940 4,111,940 4,036,014
Investment Income
Interest Earned 234,000 234,000 1,504,432
Net Change in Fair Value 3,366,000 3,366,000 13,775,429
3,600,000 3,600,000 15,279,861
Less Investment Expenses (250,000)(250,000)(227,187)
Net Investment Income 3,350,000 3,350,000 15,052,674
Total Additions 7,461,940 7,461,940 19,088,688
Deductions
Administration 65,000 65,000 52,096
Benefits and Refunds 4,790,849 4,790,849 5,271,645
Total Deductions 4,855,849 4,855,849 5,323,741
Change in Fiduciary Net Position 2,606,091 2,606,091 13,764,947
Net Position Restricted for Pensions
Beginning 84,491,283
Ending 98,256,230
Budget
Original
158
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, 2021
Final
Budget Actual
Additions
Contributions - Employer $2,390,386 2,390,386 2,370,805
Contributions - Plan Members 545,000 545,000 554,144
Total Contributions 2,935,386 2,935,386 2,924,949
Investment Income
Interest Earned 219,780 219,780 2,138,033
Net Change in Fair Value 3,443,220 3,443,220 8,553,078
3,663,000 3,663,000 10,691,111
Less Investment Expenses (175,000)(175,000)(101,029)
Net Investment Income 3,488,000 3,488,000 10,590,082
Total Additions 6,423,386 6,423,386 13,515,031
Deductions
Administration 110,000 110,000 60,102
Benefits and Refunds 3,919,522 3,919,522 4,182,238
Total Deductions 4,029,522 4,029,522 4,242,340
Change in Fiduciary Net Position 2,393,864 2,393,864 9,272,691
Net Position Restricted for Pensions
Beginning 77,125,887
Ending 86,398,578
Original
Budget
159
VILLAGE OF BUFFALO GROVE, ILLINOIS
Consolidated Year-End Financial Report
December 31, 2021
CSFA #Program Name State Federal Other Totals
494-00-1488 Motor Fuel Tax Program $2,264,980 - - 2,264,980
494-42-0495 Local Surface Transportation Program - 913,386 - 913,386
Other Grant Programs and Activities 28,886 791,978 16,194 837,058
All Other Costs Not Allocated - - 50,913,062 50,913,062
Totals 2,293,866 1,705,364 50,929,256 54,928,486
160
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
July 11, 2022
The Honorable Village President
Members of the Board of Trustees
Village of Buffalo Grove, Illinois
We have audited, in accordance with the 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, the 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, 2021, and the related notes
to the financial statements, which collectively comprise the Village’s basic financial statements, and have
issued our report thereon dated July 11, 2022.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control.
According, we do not express an opinion on the effectiveness of the Village’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the Village’s
financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that were not identified.
161
Village of Buffalo Grove, Illinois
July 11, 2022
Page 2
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed
no instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Village’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Lauterbach & Amen, LLP
LAUTERBACH & AMEN, LLP
162
SUPPLEMENTAL SCHEDULES
163
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Bonds of 2012
December 31, 2021
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
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
5,285,000 716,926 6,001,926 358,459 358,467
Requirements Interest Due on
Principal
164
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Bonds of 2016
December 31, 2021
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
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
3,345,000 471,649 3,816,649 235,821 235,828
Requirements Interest Due on
Principal
165
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Refunding Bonds of 2019
December 31, 2021
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
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
979,800 42,346 1,022,146 21,173 21,173
Requirements Interest Due on
Principal
166
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
General Obligation Bonds of 2020
December 31, 2021
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
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
22,400,000 6,002,900 28,402,900 3,001,450 3,001,450
Requirements Interest Due on
Principal
167
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
IEPA Loan Payable of 2013 - Pump Stations Improvements
December 31, 2021
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
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
272,708 40,828 313,536
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Principal
168
VILLAGE OF BUFFALO GROVE, ILLINOIS
Long-Term Debt Requirements
Installment Note Payable of 2015
December 31, 2021
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
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
5,178,045 521,056 5,699,101
CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS
Principal
169
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
sources.
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.
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 annual comprehensive 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
170
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Position by Component - Last Ten Fiscal Years*
December 31, 2021
See Following Page
171
VILLAGE OF BUFFALO GROVE, ILLINOIS
Net Position by Component - Last Ten Fiscal Years*
2013 2014 2015**
Governmental Activities
Net Investment in Capital Assets $52,096,183 51,011,919 50,712,982 50,609,420
Restricted 6,268,039 2,412,222 2,664,110 1,974,115
Unrestricted (Deficit)11,550,011 12,387,400 11,048,700 (34,637,401)
Total Governmental
Activities Net Position 69,914,233 65,811,541 64,425,792 17,946,134
Business-Type Activities
Net Investment in Capital Assets 36,706,161 35,553,648 35,871,503 38,372,943
Unrestricted 11,242,301 11,515,793 11,067,173 7,770,059
Total Business-Type
Activities Net Position 47,948,462 47,069,441 46,938,676 46,143,002
Primary Government
Net Investment in Capital Assets 88,802,344 86,565,567 86,584,485 88,982,363
Restricted 6,268,039 2,412,222 2,664,110 1,974,115
Unrestricted (Deficit)22,792,312 23,903,193 22,115,873 (26,867,342)
Total Primary Government
Net Position 117,862,695 112,880,982 111,364,468 64,089,136
* Accrual Basis of Accounting
Data Source: Audited Financial Statements
December 31, 2021 (Unaudited)
2012
** Beginning in 2015, the Village implemented GASB 68 which resulted in the inclusion of net pension
liabilities.
172
2016 2017 2018 2019 2020 2021
51,756,933 53,318,041 49,126,833 50,663,992 50,847,075 51,402,847
1,632,934 1,629,079 1,909,851 1,839,449 4,004,829 4,920,687
(36,592,629) (36,022,097) (41,165,382) (40,174,356) (35,571,215) (19,615,536)
16,797,238 18,925,023 9,871,302 12,329,085 19,280,689 36,707,998
35,494,070 36,802,425 36,831,535 37,080,189 38,677,933 44,312,875
11,034,826 10,837,462 11,296,427 11,417,357 16,662,780 20,140,083
46,528,896 47,639,887 48,127,962 48,497,546 55,340,713 64,452,958
87,251,003 90,120,466 85,958,368 87,744,181 89,525,008 95,715,722
1,632,934 1,629,079 1,909,851 1,839,449 4,004,829 4,920,687
(25,557,803) (25,184,635) (29,868,955) (28,756,999) (18,908,435) 524,547
63,326,134 66,564,910 57,999,264 60,826,631 74,621,402 101,160,956
173
VILLAGE OF BUFFALO GROVE, ILLINOIS
Changes in Net Position - Last Ten Fiscal Years*
2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities
General Government $6,101,008 6,567,545 5,843,623 5,885,811 6,441,707 6,642,798 7,576,163 7,040,728 7,164,852 7,742,034
Public Safety 22,344,117 21,964,989 22,920,180 27,256,737 30,528,127 27,384,964 30,266,207 30,187,967 26,110,362 23,840,822
Public Works 12,026,911 15,091,414 13,553,093 11,551,606 8,078,874 9,764,874 9,173,584 10,161,059 7,760,350 8,011,808
Interest on Long-Term Debt 384,180 374,511 302,781 285,863 356,799 384,073 363,925 252,590 1,206,369 1,013,033
Total Governmental
Activities Expenses 40,856,216 43,998,459 42,619,677 44,980,017 45,405,507 44,176,709 47,379,879 47,642,344 42,241,933 40,607,697
Business-Type Activities
Water & Sewer 8,931,336 8,079,364 8,435,463 8,561,248 9,001,632 9,454,554 10,078,594 9,671,845 10,375,028 10,645,623
Refuse Service 874,366 902,811 803,039 702,106 703,565 705,393 868,794 816,849 803,999 908,620
Golf Courses 2,991,170 2,942,747 2,739,077 3,288,882 2,886,404 2,888,873 2,748,035 2,828,168 2,664,715 2,766,546
Total Business-Type
Activities Expenses 12,796,872 11,924,922 11,977,579 12,552,236 12,591,601 13,048,820 13,695,423 13,316,862 13,843,742 14,320,789
Total Primary
Government Expenses 53,653,088 55,923,381 54,597,256 57,532,253 57,997,108 57,225,529 61,075,302 60,959,206 56,085,675 54,928,486
Program Revenues
Governmental Activities
Charges for Services
General Government 1,226,552 1,207,504 1,901,996 1,624,134 1,855,506 2,148,760 1,748,555 2,001,018 1,658,024 3,612,362
Public Safety 1,283,956 1,498,819 1,623,171 1,745,580 1,718,647 1,687,759 1,686,390 1,796,065 1,675,331 1,951,101
Public Works 118,547 82,393 88,665 61,194 1,151,594 1,209,784 1,134,383 1,141,998 1,409,408 254,557
Operating Grants/Contributions 1,178,442 1,161,509 1,285,396 1,229,028 1,281,732 1,271,602 1,309,324 1,664,537 3,781,784 3,157,451
Capital Grants/Contributions - - - - - 1,478,015 - 254,814 2,002,648 1,642,292
Total Governmental Activities
Program Revenues 3,807,497 3,950,225 4,899,228 4,659,936 6,007,479 7,795,920 5,878,652 6,858,432 10,527,195 10,617,763
Business-Type Activities
Charges for Services
Water & Sewer 7,464,870 8,692,812 9,076,261 9,495,691 10,304,638 11,060,938 10,832,782 10,663,766 14,589,445 15,909,163
Refuse Service 1,050,386 1,040,878 1,044,442 1,039,876 1,135,748 970,268 1,053,759 1,058,282 1,148,303 1,122,716
Golf Courses 2,221,714 1,178,368 2,257,494 2,335,928 2,240,868 2,201,460 2,042,747 2,039,584 2,469,642 2,843,203
Operating Grants/Contributions - 1,072,499 - - - - - - - -
Capital Grants/Contributions - - - - 94,326 - 250,622 350,000 341,254 -
Total Business-Type Activities
Program Revenues 10,736,970 11,984,557 12,378,197 12,871,495 13,775,580 14,232,666 14,179,910 14,111,632 18,548,644 19,875,082
Total Primary Government
Program Revenues 14,544,467 15,934,782 17,277,425 17,531,431 19,783,059 22,028,586 20,058,562 20,970,064 29,075,839 30,492,845
December 31, 2021 (Unaudited)
2012
174
2013 2014 2015 2016 2017 2018 2019 2020 2021
Net (Expense) Revenue
Governmental Activities $(37,048,719) (40,048,234) (37,720,449) (40,320,081) (39,398,028) (36,380,789) (41,501,227) (40,783,912) (31,714,738) (29,989,934)
Business-Type Activities (2,059,902) 59,635 400,618 319,259 1,183,979 1,183,846 484,487 794,770 4,704,902 5,554,293
Total Primary Government
Net (Expense) Revenue (39,108,621) (39,988,599) (37,319,831) (40,000,822) (38,214,049) (35,196,943) (41,016,740) (39,989,142) (27,009,836) (24,435,641)
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property 14,330,407 14,504,750 14,554,564 14,742,622 15,034,583 15,510,127 15,980,771 16,321,876 17,035,362 16,970,657
Sales and Home Rule 7,570,915 7,803,749 8,455,972 9,274,777 9,095,471 9,229,254 10,159,866 9,945,744 9,829,765 16,013,177
Income and Use 5,462,111 4,737,656 4,104,736 5,409,875 4,994,426 4,843,251 5,221,827 5,852,397 6,422,488 7,259,195
Telecommunications 2,200,809 1,943,811 1,679,653 1,644,309 1,513,254 1,586,128 1,761,326 1,304,425 906,071 716,737
Utility 2,510,242 2,629,997 2,819,427 2,643,642 2,659,554 2,532,662 2,805,912 2,763,471 2,643,697 2,662,956
Property Transfer 459,036 760,164 790,819 904,311 1,115,360 1,256,919 969,039 1,024,769 989,118 1,601,370
Other 1,070,409 1,052,788 1,113,831 1,092,554 1,110,503 1,019,807 1,087,497 1,340,564 987,097 1,268,677
Investment Earnings 132,436 54,522 107,765 25,061 65,600 153,816 292,340 807,330 305,366 (33,773)
Miscellaneous 1,239,906 1,506,994 1,636,721 1,458,118 1,596,806 1,409,537 1,884,579 2,694,331 1,176,737 2,210,580
Transfers 635,500 951,111 1,070,724 749,027 1,062,190 958,315 53,715 1,186,788 (1,629,358) (1,955,738)
Gain on sales of assets - - 488 1,601 1,385 8,758 - - - -
Total Governmental Activities
General Revenues 35,611,771 35,945,542 36,334,700 37,945,897 38,249,132 38,508,574 40,216,872 43,241,695 38,666,343 46,713,838
Business-Type Activities
Investment Earnings 27,087 12,455 18,820 10,112 14,159 492,132 359,371 487,333 472,703 394,698
Miscellaneous 1,259 - 520,521 5,737 249,946 393,328 242,058 274,269 36,204 417,516
Transfers (635,500) (951,111) (1,070,724) (749,027) (1,062,190) (958,315) (53,715) (1,186,788) 1,629,358 1,955,738
Total Business-Type Activities
General Revenues (607,154) (938,656) (531,383) (733,178) (798,085) (72,855) 547,714 (425,186) 2,138,265 2,767,952
Total Primary Government
General Revenues 35,004,617 35,006,886 35,803,317 37,212,719 37,451,047 38,435,719 40,764,586 42,816,509 40,804,608 49,481,790
Changes in Net Position
Governmental Activities (1,436,948) (4,102,692) (1,385,749) (2,374,184) (1,148,896) 2,127,785 (1,284,355) 2,457,783 6,951,605 16,723,904
Business-Type Activities (2,667,056) (879,021) (130,765) (413,919) 385,894 1,110,991 1,032,201 369,584 6,843,167 8,322,245
Total Primary Government
Changes in Net Position (4,104,004) (4,981,713) (1,516,514) (2,788,103) (763,002) 3,238,776 (252,154) 2,827,367 13,794,772 25,046,149
* Accrual Basis of Accounting
Data Source: Audited Financial Statements
2012
175
VILLAGE OF BUFFALO GROVE, ILLINOIS
Fund Balances of Governmental Funds - Last Ten Fiscal Years*
2013 2014 2015
General Fund
Nonspendable $518,437 562,399 573,812 551,242
Restricted - 162,274 130,435 223,622
Committed 7,335,685 7,345,420 7,438,256 7,532,123
Unassigned 10,759,935 12,395,113 13,225,644 14,991,907
Total General Fund 18,614,057 20,465,206 21,368,147 23,298,894
All Other Governmental Funds
Restricted 6,112,703 1,796,997 1,965,328 1,974,115
Assigned 144,075 101,213 - -
Committed - - - -
Unassigned (253,826) (927,395) (2,324,296) (3,707,560)
Total All Other
Governmental Funds 6,002,952 970,815 (358,968) (1,733,445)
Total Governmental Funds 24,617,009 21,436,021 21,009,179 21,565,449
* Modified Accrual Basis of Accounting
Data Source: Audited Financial Statements
December 31, 2021 (Unaudited)
2012
176
2016 2017 2018 2019 2020 2021
167,957 132,843 132,134 159,494 571,654 583,442
229,953 252,729 607,411 484,881 760,160 865,185
8,511,306 7,758,348 6,827,236 8,313,902 9,052,502 14,326,113
16,143,726 18,902,476 17,039,974 18,939,974 20,134,162 22,485,209
25,052,942 27,046,396 24,606,755 27,898,251 30,518,478 38,259,949
1,632,934 1,629,079 1,302,440 1,354,568 19,842,763 12,040,606
- - - - -
- - - 261,007 300,803 857,573
(3,859,964) (3,714,759) (268,260) - - -
(2,227,030) (2,085,680) 1,034,180 1,615,575 20,143,566 12,898,179
22,825,912 24,960,716 25,640,935 29,513,826 50,662,044 51,158,128
177
VILLAGE OF BUFFALO GROVE, ILLINOIS
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years*
2013 2014**2015
Revenues
Propety Taxes $14,330,407 14,504,750 14,554,564 14,742,622
Other Taxes 18,325,614 19,240,365 9,564,978 9,712,718
Licenses and Permits 275,434 294,622 207,312 1,330,769
Intergovernmental 1,011,949 997,371 11,081,081 1,931,512
Fines and Forteitures 1,283,956 1,647,364 1,803,317 350,042
Charges for Services 1,236,158 1,010,868 1,371,779 12,271,219
Interest 132,457 54,522 107,765 25,061
Miscellaneous 1,239,861 1,506,994 2,107,628 1,404,841
Total Revenues 37,835,836 39,256,856 40,798,424 41,768,784
Expenditures
Current
General Government 5,556,101 6,465,636 5,522,549 5,084,772
Public Safety 21,791,218 21,805,910 22,773,535 25,237,115
Public Works 9,865,723 12,178,705 10,878,278 8,092,735
Capital Outlay 1,561,904 1,347,276 2,018,451 2,828,194
Debt Service
Principal 920,000 940,000 790,000 510,000
Interest 285,420 385,395 313,665 296,747
Total Expenditures 39,980,366 43,122,922 42,296,478 42,049,563
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,144,530) (3,866,066) (1,498,054) (280,779)
Other Financing Sources (Uses)
Transfers In 2,621,132 2,119,313 2,552,288 3,521,760
Transfers Out (1,985,632) (1,434,235) (1,481,564) (2,686,312)
Sales of Capital Assets - - 488 1,601
Auction Proceeds 45 - - -
Bond Issued 6,000,000 - - -
Premium of Issuance of Debt 91,669 - - -
Transfer to Escrow Agent - - - -
Total Other Financing Sources (Uses)6,727,214 685,078 1,071,212 837,049
Net Change in Fund Balances 4,582,684 (3,180,988) (426,842) 556,270
Debt Service as a Percentage
of Noncapital Expenditures 3.14%3.17%2.68%2.06%
* Modified Accrual Basis of Accounting
**Beginning in 2014, state shared revenues have been recorded as intergovernmental revenues.
Data Source: Village Records
December 31, 2021 (Unaudited)
2012
178
2016 2017 2018 2019 2020 2021
15,034,583 15,510,127 15,980,771 16,321,876 17,035,362 16,970,657
9,701,271 9,816,523 10,494,959 9,835,616 8,970,163 12,777,682
326,177 1,763,982 344,389 362,747 301,321 301,917
11,843,812 3,043,453 12,623,735 14,074,544 18,417,351 21,544,173
3,025,628 330,475 2,820,773 3,121,111 3,137,339 2,221,275
1,504,400 11,709,919 1,600,263 1,695,784 1,479,257 3,294,828
65,600 153,816 292,340 807,330 305,366 (33,773)
1,610,746 1,456,876 1,884,579 2,694,331 1,176,737 2,210,580
43,112,217 43,785,171 46,041,809 48,913,339 50,822,896 59,287,339
5,693,142 5,774,748 6,804,142 6,293,156 6,834,043 8,919,334
27,407,019 25,776,184 26,732,460 27,561,835 28,891,545 29,352,949
6,978,307 8,101,888 8,710,363 7,341,611 6,973,359 6,324,738
8,252,604 1,362,213 1,502,272 3,689,375 9,571,463 8,500,778
525,000 1,275,000 1,315,000 1,210,000 1,299,030 2,550,445
371,456 401,609 370,202 325,743 1,196,044 1,200,773
49,227,528 42,691,642 45,434,439 46,421,720 54,765,484 56,849,017
(6,115,311) 1,093,529 607,370 2,491,619 (3,942,588) 2,438,322
3,402,595 4,204,943 9,068,487 5,397,700 12,345,886 13,079,260
(2,253,984) (3,192,426) (8,995,638) (4,171,708) (13,975,244) (15,034,998)
1,385 28,758 - 163,085 - 13,500
- - - - - -
6,125,000 - - 1,449,275 24,000,000 -
100,778 - - - 2,720,164 -
- - - (1,457,080) - -
7,375,774 1,041,275 72,849 1,381,272 25,090,806 (1,942,238)
1,260,463 2,134,804 680,219 3,872,891 21,148,218 496,084
2.19%4.24%3.89%3.48%5.70%7.72%
179
VILLAGE OF BUFFALO GROVE, ILLINOIS
Assessed Value and Actual Value of Taxable Property - Last Ten Tax Levy Years
Tax
Levy
Year
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 1,493,688,565 284,382,018 5,900,081 691,021
2021 1,488,518,173 *283,058,665 *5,872,625 *687,805
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, 2021 (Unaudited)
Property Property Property Property
Residential Commercial Industrial Other
180
Estimated
Tax Rate Actual Taxable
for Lake County Value %
$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%
1,784,661,685 5,362,795,164 0.9032 33.333%
1,778,137,268 *5,334,411,804 0.9043 33.333%
Value Value
Estimated
Total Assessed Actual Taxable
181
VILLAGE OF BUFFALO GROVE, ILLINOIS
Direct and Overlapping Property Tax Rates - Last Ten Tax LevyYears
2012 2013 2014
Direct Rate
Lake County
Village of Buffalo Grove 0.929 0.983 0.993
Cook County
Village of Buffalo Grove 1.030 1.211 1.235
Total 1.959 2.194 2.228
Overlapping Rate
Lake County
County, including Forest Preserve 0.820 0.881 0.893
Combined School Districts (102, 125, 532)6.779 7.068 7.164
Buffalo Grove Park District 0.511 0.537 0.553
Vernon Area Public Library 0.441 0.311 0.317
All Other (1)0.106 0.105 0.113
Cook County
County, including Forest Preserve 0.594 0.125 0.126
Metropolitan Water Reclamation District
of Greater Chicago 0.370 0.417 0.430
Combined School Districts (21, 214, 512)6.917 8.053 8.657
Buffalo Grove Park District 0.557 0.658 0.677
Indian Trails Public Library District 0.463 0.504 0.529
All other (2)0.187 0.129 0.094
Total (3)17.745 18.788 19.553
Notes:
(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 2021 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.
Taxes Levied on a calendar year basis for collection in the subsequent year.
The Village is home rule unit under the 1970 Illinois State Constitution and,as such, has no statutory tax
rate limitations.
(1) Includes Road and Bridge and General Assistance for the Township herein.
Data Source: Cook County Tax Extension/Lake County Tax Extension
N/A - Not Available
December 31, 2021 (Unaudited)
182
2015 2016 2017 2018 2019 2020 2021
0.955 0.921 0.908 0.907 0.890 0.903 0.904
1.316 1.138 0.969 1.210 1.136 N/A N/A
2.271 2.059 1.877 2.117 2.026 0.903 0.904
0.871 0.825 0.809 0.794 0.776 0.780 0.777
7.034 6.680 6.634 6.665 6.459 6.754 7.045
0.517 0.492 0.482 0.480 0.465 0.478 0.491
0.308 0.293 0.291 0.294 0.293 0.304 0.312
0.110 0.104 0.099 0.096 0.091 0.093 0.095
0.621 0.596 0.558 N/A 0.513 N/A N/A
0.426 0.406 0.402 N/A 0.389 N/A N/A
8.989 7.909 8.010 N/A 7.450 N/A N/A
0.714 0.606 0.641 N/A 0.584 N/A N/A
0.534 0.476 0.481 N/A 0.446 N/A N/A
0.130 0.073 0.108 N/A 0.100 N/A N/A
20.254 18.460 18.515 8.328 17.565 N/A N/A
Data Source: Cook County Tax Extension/Lake County Tax Extension
183
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 2.03%$32,419,958 1 1.95%
The Wheatlands, LLC 12,585,977 2 0.71%
Newport Equities LLC 9,657,767 3 0.54%
BRI 1862 Riverwalk LLC 9,547,124 4 0.54%
Millbrook 9,504,994 5 0.53%10,526,585 4 0.63%
Resource Real Estate Inc 8,788,755 6 0.49%
Chicago Infill Industrial 8,470,984 7 0.47%
Rivewalk South LLC 6,747,740 8 0.38%8,388,778 7 0.50%
Woodman's Food Market Inc 6,442,584 9 0.36%
Inland Woodlands LLC 6,423,126 10 0.36%6,078,177 10 0.37%
Arthur J. Rogers and Co (4)8,994,528 6 0.54%
Hamilton Partners (1)18,164,709 2 1.09%
Remax Consumer Plastics Inc 13,732,947 3 0.83%
Penobscot Management LLC 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%
114,414,387 6.41%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, 2021 (Unaudited)
2020 2011
Taxable Taxable
Assessed Assessed
184
VILLAGE OF BUFFALO GROVE, ILLINOIS
Property Tax Levies and Collections - Last Ten Fiscal Years
December 31, 2021 (Unaudited)
Tax
Levy Percentage Percentage Percentage
Year of Levy of Levy of Levy
2011 $11,026,478 $11,019,638 99.94%$3,279,285 $3,225,824 98.37%$14,245,462 99.58%
2012 11,183,780 11,105,274 99.30%3,449,572 3,399,477 98.55%14,504,751 99.12%
2013 11,413,067 11,172,745 97.89%3,424,515 3,381,819 98.75%14,554,564 98.09%
2014 11,339,326 11,322,087 99.85%3,500,800 3,409,458 97.39%14,731,545 99.27%
2015 11,678,742 11,426,115 97.84%3,514,106 3,608,468 102.69%15,034,583 98.96%
2016 11,783,047 11,761,365 99.82%3,811,228 3,748,763 98.36%15,510,128 99.46%
2017 12,055,130 12,055,130 100.00%4,022,627 3,916,453 97.36%15,971,583 99.34%
2018 12,296,750 12,273,540 99.81%4,177,992 4,048,337 96.90%16,321,877 99.07%
2019 12,767,830 12,528,898 98.13%4,333,453 4,245,195 97.96%16,774,093 98.09%
2020 12,663,437 12,618,734 99.65%4,455,175 4,312,066 96.79%16,930,800 98.90%
Data Source: Office of the County Clerk of Cook/Office of the County Clerk of Lake
the Fiscal
Amount Year Amount Amount
Village Total
Lake County
Taxes
Levied for
Collected within the Taxes Collected within the
the Fiscal
Year
Cook County
Fiscal Year of the Levy Levied for Fiscal Year of the Levy
185
VILLAGE OF BUFFALO GROVE, ILLINOIS
Taxable Sales by Category - Last Ten Calendar Years
December 31, 2021 (Unaudited)
2013 2014
General Merchandise $17,526 10,105 9,098
Food 1,193,312 1,133,605 1,080,556
Drinking and Eating Places 997,738 1,025,547 1,023,545
Apparel 130,163 120,210 104,229
Furniture, Households and Radio 437,774 463,678 356,095
Lumber, Building and Hardware 812,434 1,236,689 1,666,708
Automobile and Filling Stations 954,996 857,713 947,278
Drugs and Misc. Retail 1,847,550 1,915,937 2,349,469
Agriculture and All Others 1,347,303 1,572,248 1,693,506
Manufacturers 334,442 285,848 270,063
Totals 8,073,238 8,621,580 9,500,547
Total Number of Taxpayers 966 972 974
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
2012
Note: Blank Categories have less than four taxpayers; therefore, no data is shown to protect the confidentiality
of the individual taxpayers.
186
2015 2016 2017 2018 2019 2020 2021
66,228 86,125 - - - 66,754 133,228
1,552,983 1,481,195 1,557,474 1,836,131 2,419,704 2,485,816 2,772,036
1,062,206 1,118,330 1,107,878 1,133,048 1,203,642 987,063 1,166,982
94,538 92,409 68,075 66,797 167,211 57,933 94,887
521,007 369,583 380,907 1,250,788 1,294,886 1,482,689 2,132,025
1,879,818 2,074,008 2,357,551 2,202,029 2,119,185 2,267,449 3,132,250
918,216 867,250 1,007,356 1,068,115 1,089,620 848,373 1,059,622
1,790,381 1,986,578 1,568,024 1,536,061 1,481,357 1,515,668 3,054,824
2,313,502 2,231,299 2,573,323 2,470,229 2,484,560 2,303,808 2,364,628
351,808 220,927 200,727 180,646 213,851 170,291 192,379
10,550,687 10,527,704 10,821,315 11,743,844 12,474,017 12,185,844 16,102,861
1,043 1,022 1,036 1,036 987 902 902
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%
187
State of
Village Village Illinois
Fiscal Direct Home Rule Sales Tax
Year Rate Rate Rate
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%
2021 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, 2021 (Unaudited)
188
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratios of Outstanding Debt By Type - Last Ten Fiscal Years
See Following Page
December 31, 2021 (Unaudited)
189
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratios of Outstanding Debt By Type - Last Ten Fiscal Years
Fiscal
Year
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
2021 34,612,580 - 272,708 5,178,045
(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, 2021 (Unaudited)
General
Activities
Bonds Bonds Loan Note
Governmental
Business-Type Activities
Notes: Details of the Village's outstanding debt can be found in the Notes to Financial Statements.
Obligation Obligation IEPA Installment
General
190
Ratio of
Total
Outstanding Debt
Debt to Outstanding
Equalized as a Percentage
Assessed of Personal
Valuation (2)Income (1)
$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%
40,063,333 0.75%927.13 1.70%
Notes: Details of the Village's outstanding debt can be found in the Notes to Financial Statements.
Total
Primary
Total
Outstanding
Debt
Per Capita (1)Government
191
Percentage of
Total Taxable
Less: Amounts Assessed
Fiscal Available in Value of Per
Year Debt Service Total Property (1)Capita (2)
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
2021 34,612,580 247,676 34,364,904 0.64%795.26
(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, 2021 (Unaudited)
VILLAGE OF BUFFALO GROVE, ILLINOIS
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years
General
Obligation
192
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Direct and Overlapping Governmental Activities Debt
Percentage of
Debt
Applicable
Governmental Unit to Village (1)
Village $34,612,580 100.00%$34,612,580
Overlapping Debt
School Districts
Cook County School District #21 84,350,000 17.63%14,867,282
Aptakisic-Tripp Community Consolidated #102 16,580,000 75.06%12,445,465
Lincolnshire-Half Day District #103 6,595,000 12.21%805,462
Adlai E. Stevenson H.S. District #125 47,840,000 38.21%18,280,579
Wheeling Township H.S. District #214 25,000,000 3.75%936,835
Harper Community College #512 243,530,000 1.76%4,287,474
College of Lake County #532 45,110,000 5.42%2,442,888
Total of School Districts 469,005,000 54,065,985
Other than School Districts
Lake County 137,310,000 5.16%7,080,403
Lake County Forest Preserve 181,865,000 5.16%9,377,885
Cook County 2,425,146,750 0.22%5,336,983
Cook County Forest Preserve 113,105,000 0.22%248,908
Metropolitan Water Reclamation District 2,759,628,416 0.22%6,178,289
Buffalo Grove Park District 10,153,000 95.69%9,702,248
Wheeling Park District 9,725,000 7.15%630,584
Total Other than School Districts 5,636,933,166 38,555,300
Total Direct and Overlapping Debt 5,671,545,746 92,621,285
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, 2021 (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.
193
VILLAGE OF BUFFALO GROVE, ILLINOIS
Schedule of Legal Debt Margin
December 31, 2021 (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.
194
VILLAGE OF BUFFALO GROVE, ILLINOIS
Demographic and Economic Statistics - Last Ten Fiscal Years
December 31, 2021 (Unaudited)
Per
Equalized Capita
Fiscal Assessed Personal Personal Per Capita Unemployment
Year Population Valuation EAV Income Income Rate
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%
2021 43,212 E 1,778,137,268 41,149 2,356,263,936 54,528 (1) 3.8%
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
195
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%2,000 1 4.72%
I.S.I.1,200 2 2.96%
ESS 550 3 1.36%
Plexus Corp 370 4 0.91%370 6 0.87%
Veritas Document Solutions 300 5 0.74%
US LBM Holdings, LLC 250 6 0.62%
Village of Buffalo Grove 202 7 0.50%
ARxIUM 200 8 0.49%
Vapor Bus International 200 9 0.49%
Leica Microsystems Inc.200 10 0.49%
SMS-NA USA 1,200 2 2.83%
Rexam 800 3 1.89%
Dominick's Finer Foods (three locations)483 4 1.14%
GSF-USA, Inc.450 5 1.06%
Harris Trust & Savings Bank 350 7 0.83%
Dell 225 8 0.53%
Texex Corp 220 9 0.52%
Amerisource Bergen 200 10 0.47%
5,272 13.02%6,298 14.86%
Data Source:
Sources: 2022 Illinois Manufacturing Directory
Employees Employees
December 31, 2021 (Unaudited)
2021 2012
196
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Village Government Employees by Function - Last Ten Fiscal Years
December 31, 2021 (Unaudited)
See Following Page
197
VILLAGE OF BUFFALO GROVE, ILLINOIS
Full-Time Equivalent Village Government Employees by Function - Last Ten Fiscal Years
2013 2014
General Government
Administration
Village Managers Office 4.5 5.5 7.5
Information Technology 3.5 3.5 3.0
Human Resources 2.0 2.0 2.0
Finance 8.5 9.5 10.0
Community Development 10.0 10.0 9.5
Planning 1.5 1.5 1.5
Public Safety
Police
Full-Time Police Officers 69.0 64.0 63.0
Community Service Officers 3.0 3.0 3.0
Civilians 16.5 17.0 15.0
Fire
Full-time Firefighters/Paramedics 62.0 58.0 58.0
Civilians 3.5 3.5 1.5
Public Works
Public Works Administration 11.0 5.0 6.0
Streets/Forestry 20.0 18.5 18.5
Water/Sewer 13.0 8.0 9.0
Central garage 5.5 5.5 5.5
Building Maintenance 4.0 4.0 6.0
Recreation
Administration 13.5 18.0 19.5
Grounds Maintenance 15.0 16.0 11.5
Total 266.0 252.5 250.0
Recreation
Seasonal 34.0 30.0 30.0
Data Source: Village Finance Department
December 31, 2021 (Unaudited)
2012
198
2015 2016 2017 2018 2019 2020 2021
6.0 5.0 5.5 5.5 5.5 4.5 4.5
- - - - - - -
2.0 2.0 2.0 2.0 2.0 2.0 2.0
8.0 9.0 9.0 9.0 8.0 9.0 8.0
12.0 12.0 14.0 15.0 13.0 13.0 10.0
- - - - - - -
63.0 63.0 61.0 61.0 63.0 60.0 58.0
3.0 3.0 2.0 2.0 2.0 2.0 2.0
15.0 15.5 16.0 16.0 20.0 16.0 12.5
59.0 59.0 58.0 59.0 56.0 56.0 57.0
1.0 1.0 4.5 5.0 7.0 9.0 4.5
6.0 6.0 12.0 11.5 10.0 11.0 11.0
20.0 20.0 20.0 20.0 17.0 17.0 15.0
10.0 9.0 12.0 12.0 13.0 12.0 12.0
5.5 5.5 5.5 5.5 5.5 5.5 5.5
6.0 6.0 4.5 4.5 4.5 4.5 3.0
19.5 4.0 4.0 4.0 2.0 2.0 2.0
11.5 - - - - - -
247.5 220.0 230.0 232.0 228.5 223.5 207.0
30.0 30.0 30.0 30.0 29.0 38.0 38.0
199
VILLAGE OF BUFFALO GROVE, ILLINOIS
Operating Indicators by Function/Program - Last Ten Fiscal Years
2013 2014
General Government
Building and Zoning
Building Permits Issued 2,206 2,651 2,833
Building Inspections Conducted 15,858 7,456 7,074
Property Maintenance Inspections Conducted 5,828 3,288 3,172
Public Safety
Police
Physical Arrests 671 759 886
Parking Violations 3,341 2,984 3,634
Traffic Violations 10,826 13,171 8,349
DUI Arrests 107 124 154
Vehicle Crashes 1,260 1,507 1,429
Fire
Ambulance Calls/EMS 2,789 2,613 3,385
Service Calls 487 483 1,245
Fire Calls 698 865 821
Auto Aid/Mutual Aid 680 654 1,063
Public Works
Streets
Street Resurfacing (Miles)5.51 10.84 3.28
Parks and Recreation
Park Sites 46 46 46
Golf Course - Combined
Golf Rounds Played - Paid 59,937 53,639 54,689
Water
New Connections (Tap ons)15 27 9
Average Daily Consumption (1)3.92 3.70 3.58
Peak Daily Consumption (1)7.93 6.20 5.40
(1) - Millions of Gallons
Data Source: Various Village Departments
December 31, 2021 (Unaudited)
2012
200
2015 2016 2017 2018 2019 2020 2021
2,582 2,957 2,567 2,502 3,443 2,697 3,339
11,625 9,053 6,692 6,817 7,361 5,540 6,097
1,894 2,160 1,954 1,902 2,254 1,856 1,543
809 521 441 452 406 283 233
3,766 5,754 6,781 5,748 3,404 2,185 2,180
7,969 6,054 5,310 6,054 4,844 3,439 3,760
97 74 87 85 74 54 44
363 1,473 1,294 1,353 1,459 829 948
3,123 3,160 3,201 3,145 3,145 3,276 3,444
340 309 293 309 409 249 256
1,585 1,279 1,082 1,257 1,253 1,096 1,209
1,055 987 1,045 967 1,193 1,198 790
2.45 11.40 2.76 0.97 2.64 4.97 4.50
46 46 46 46 46 46 46
68,602 53,599 51,138 48,770 44,000 58,297 71,617
23 19 3 23 11 23 34
3.39 3.60 3.23 3.49 3.13 3.33 3.51
5.14 5.54 5.98 5.69 4.83 4.97 5.67
201
VILLAGE OF BUFFALO GROVE, ILLINOIS
Capital Asset Statistics by Function/Program - Last Ten Fiscal Years
2013 2014
Public Safety
Police
Stations 1 1 1
Vehicles 34 28 29
Fire
Stations 3 3 3
Vehicles*21 21 20
Public Works
Streets 117.70 117.70 118.20
Street (Miles)2,778 2,778 2,786
Streetlights
Water
Water Mains 180.25 180.30 180.90
Fire Hydrants 2,475 2,477 2,487
Wastewater
Sanitary Sewers 139.27 139.30 139.80
Data Source: Various Village Departments
* Includes fire engines/towers, ambulances, and staff cars
December 31, 2021 (Unaudited)
2012
202
2015 2016 2017 2018 2019 2020 2021
1 1 1 1 1 1 1
30 29 31 30 29 30 31
3 3 3 3 3 3 3
20 20 20 20 20 20 20
118.20 118.22 114.02 114.02 113.90 110.83 116.07
2,789 2,789 2,790 2,755 2,437 3,115 2,958
181.14 181.31 181.97 185.99 186.19 188.60 185.43
2,493 2,501 2,514 2,507 2,507 2,584 2,607
139.92 139.92 139.96 141.60 135.94 137.38 137.08
203