2022 PAFR2022
Popular
Financial
Annual
Report
2022
Popular
Financial
Annual
Report
Village Trustees
Andrew Stein
Lester Ottenheimer
David Weidenfeld
Joanne Johnson
Frank Cesario
Gregory Pike
A Message from
the Village President
I'm very pleased for the Village
of Buffalo Grove to present its
annual “Citizenʼs Guide to Local
Financial Activities” (Public
Annual Financial Report) for the
fiscal year ended December 31, 2022.
I'm proud of our ability to deliver the Buffalo Grove
community with an overview of the Villageʼs progress
and financial performance in a manner that is both
transparent and easy to understand. This report does
not replace the Annual Comprehensive Financial
Report (ACFR), but rather provides a summary of
financial activities. The full disclosure financial
statements, or ACFR, are available online at
www.vbg.org/financialreports.
Analysis conducted within this report outlines growth
drivers, capital projects and summarized financial and
trend data. The presentation of financial information
in the report has been derived from audited financial
statements and conforms to generally accepted
accounting principles (GAAP) and related reporting
standards.
The Village continues to prioritize financial
transparency and open communication with its
residents and businesses. I hope the information and
data provided in this guide to local financial activities
in 2022 gives you a snapshot of the challenges and
opportunities the Village of Buffalo Grove is managing
today and into the future.
Sincerely,
The Village Clerk's office maintains all of the
Villageʼs official records, meeting minutes and
documents as well as a range of services including
business and liquor licensing, voter registration and
municipal code updates.
Budget Overview
Buffalo Grove's 2022 budget is designed to provide residents and other
interested parties with an easy-to-navigate format that clearly explains how
the Village allocates its resources. Each program strives to make BG more
responsible, resilient and/or safe. Every program consists of major services
the Village provides for its residents and the business community. Therefore,
the budget document is organized by areas, programs and major services.
The gray boxes on the following pages provide an overview of each area.
Each program provides oversight over the services that are provided either
directly to the community or indirectly as an internal support function. How
resources are allocated within the annual budget provides the reader insight
as to what the strategic priorities are and what services are valued by Village
stakeholders. The 2022 budget supports 18 programs that deliver 47
services.
Each year, the Village determines its level of service, strategic goals and
expectations and staffing levels based upon the demand for services,
anticipated revenues and progress toward long-term operational and capital
development goals.
Responsible Resilient Safe
BG is...
Janet Sirabian
Eric Smith
BG is...
of residents have some level of
post-secondary education
87%
Median household income in BG
$117,921
A Closer Look at BG
Responsible
BG is committed to
being prudent
stewards of the public
dollar.
To achieve this
commitment the
village takes the
following actions:
Innovating the
administrative,
personnel, and
legislative functions
Managing the Village's
finances, pension
funds and debt
service
Overseeing the
strategic use
of information
technology resources
The Villageʼs net position increased by $5.9 million (or 35.7 percent) during the
fiscal year ending December 31, 2021. The governmental net position decreased
by $6.2 million (16.9 percent) and the business-type activities net position
increased by $12.1 million (18.8 percent).
Equalized assessed valuation decreased by $36.6 million or 2.1 percent to
$1.75 billion for the 2021 levy year (collected in 2022).
Did you know?
Open BG provides a hub of
direct access to the Villageʼs
financial, historical and
contractual data. Anyone can
use this data to participate in
and improve government.
Check it out at vbg.org/openbg!
BG Quick Facts
Where Your Property Tax
Dollars Go
of residents in the labor force are
currently employed
97%
is the median age of a BG resident
41.2
of residents have access to 4+
acres per 1,000 residents
79%
Single-family homes in
Buffalo Grove
11,434
of residents were born outside of
the United States
35%
Total population in BG
43,212
74.3%
16.4%
9.3%
BG has a distinctive local economy with an employment
base of 20,000 daily workers.
BG has over 10 million square feet of commercial, office,
and industrial space. BG is home to several advanced
manufacturing centers as well as many high profile firms
such as Siemens, Plexus and Yaskawa.
2022 Top Employers
and Tax Payers
BG is...
Resilient
BG strives to provide
and maintain the
highest quality
infrastructure.
To achieve this
commitment the
village takes the
following actions:
Maintaining the
village's streets,
grounds, water,
drainage, and
sewer systems.
Improving the
quality of municipal
buildings, parking
lots, and vehicles.
Directing the long
term structural
needs through
engineering.
Revenues for the Villageʼs governmental activities for the year ended
December 31, 2022 were $66.3 million, an increase of $7.0 million or
11.8 percent. Property taxes continue to be the Villageʼs largest source
of revenue (25.7 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 33.2
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 $34.4
million or 52.0 percent of total governmental activities revenue.
Revenue Overview
Did you know?
MoneyGeek.com recently evaluated small cities and
towns across the United States - those with 30,000 to
100,000 residents - and ranked them according to the
per capita cost of crime. They ranked Buffalo Grove the
#1 safest town in the U.S., with a $22 crime cost per
capita.
Local Economy
External economic factors at the national and state level continue to
impact the Villageʼs revenue profile and, subsequently its ability to
manage operating and capital resources.
Property tax collections totaled $17,037,557 which is a slight increase
from the previous yearʼs total of $16,970,657, an increase of 0.4
percent.
Water and Sewer collections decreased from $16,326,679 in 2021 to
$16,119,322 in 2022, a total decrease of 1.3 percent.
Sales taxes, both state shared and home rule, generated $17,037,557 in
2022 versus $16,013,176 in 2021, an increase of .4 percent.
MoneyGeek.com recently evaluated small cities
and towns across the United States - those with
30,000 to 100,000 residents - and ranked them
according to the per capita cost of crime. They
ranked Buffalo Grove the #1 safest town in the
U.S., with a $22 crime cost per capita.
Did you
know?
BG is...
SafeBG knows that the
community expects to be
safe in their homes, at
work, and around town.
To achieve this
commitment, the village
takes the following
actions:
Insuring the public's
safety through
emergency medical ,
fire, and police
services.
Inspecting the
environmental and
health impacts of
businesses.
Developing standards
for the permitting and
zoning of the village's
built environment.
The Clove
Village leadership, along with developers
Kensington Development Partners and
Urban Street Group broke ground on the 22-
acre Town Center property redevelopment.
Construction of The Clove is underway to
transform the area into a new, modern
entertainment, commercial and residential
district. This compact central district will
feature contemporary building design, as
well as upscale tenants and be a unique
destination for residents and visitors alike.
Following the groundbreaking, several
buildings were demolished. Construction is
underway on the 43,000 square foot grocery
store, as well as the 7-story, 297-unit high-
end apartment building with 16,000
square feet of commercial space on the
ground floor. Distinctive of this building, the
NCH and retail outlot
Northwest Community Healthcare (NCH) redeveloped
into a new 4-story medical office building that was
awarded the 2022 Best Medical Property in the state.
NCH's site plans also include a 4,900 square foot retail
outlot at the northwest corner, and construction is
underway for Wild Fork and Veterinary Emergency Group.
New Public Works Facility
focus is creating an amenity-rich,
convenience-filled environment. The plan
also provides nearly 20,000 square feet of
new retail and restaurants scattered
throughout the site. So far Chick-fil-A and
Guzman y Gomez have made
commitments and construction for their
new restaurants is in the works. A nearly
one-acre Village-owned “Central Park”
will sit in the middle of the site and can
be programmed for concerts and other
events. The 34,000 square feet located
on the northern portion of the site,
creating new opportunities for existing
and future tenants.
The Village purchased the building at 1650 Leider Lane and began planning
for construction. The new 173,000 square foot facility provides enough
space to accommodate public works operations now and well into the
future. Repurposing an existing building will save the Village approximately
40% of costs compared to that of a new building. While construction costs
are at a premium, staff has planned for value engineering to keep costs in
line. The project will be financed with combination of AAA-rated bonds and
capital fund reserves. The remainder of the project cost will come from the
sale of the existing public works property and other sources, with no
additional cost to BG taxpayers. Occupancy is anticipated sometime in 2024.
BGPD
Quick
Facts
Expense Overview
The cost of all governmental activities this year was $67.1
million, an increase of 65.3 percent from 2021 ($40.6 million). The
largest decrease was made in General Government expenses $19.4
million in 2022. Public Safety expenses increased by $6.9 million
(28.9 percent) and Public Works expenses remained stable at $8.0
million.
Expenses from all business-type activities increased by $5.3
million or 37.3 percent. The Water Fund expenses increased by
$5.1 million, which compares favorably to a budgeted increase in
expenses. Golf expenses were decreased in 2022 to $2.0 million
in total or 4.8 percent.
Affirmative Action
Recruiting Plan has
been in place since
1986 and updated
every 3 years.
Biased Based
Policing Annual
review revealed the
21st consecutive year
without any
complaints of biased
based profiling.
Officers complete an
8-hour mental health
first aid and a
40-hour crisis
intervention training.
Village Pension Obligations
The Fire Pension Fund had a funded ratio of 82%
as of December 31, 2022. The annual interest rate
assumption is 7% with a the five-year average
return is 6.36% as of December 31, 2022.
The Police Pension Fund had a funded ratio of
78% as of December 31, 2022. The annual interest
rate assumption is 7% with a five-year average
return of 5.68% as of December 31, 2022.
75% of total retirement expenses are related to
pension costs. In 2022, the Village contributed
$5.8 million in employer obligations for current
and future annuitants and $9.4 million was
distributed to retired pensioners.
Finance and Liabilities
2022
Adequate Reserves
The Village had $17,701,070
in unassigned fund balance
available in the General Fund
on December 31, 2022.
Debt Reduction
The Village retired a total of
$2,570,990 in general obligation
debt in fiscal year 2022.
Public Safety
Pension Funding
The Fire Pension Fund is funded
at 81.9%, and the Police Pension
Fund is funded at 77.5%. State
statute mandates that pensions
be funded at 100% by 2040.
Financial Stability
The Village holds a AAA⏤the
highest possible⏤bond rating
from Standard & Poor's on all
current bonded general
obligation debt.
The Village's financial policy requires a
25% fund balance for general operations.
Learn more at www.vbg.org/financialreports.
Cambridge on the Lake Lift Station Relocation
Forest/Glendale Street + Utility
Thompson + Brandywyn Road Contract 3
Maintenance Projects
Learn more about key
IMP Projects
Connect
with the
Village and
stay
informed
The Infrastructure Modernization Program encompasses
the largest initiative in the Villageʼs history to replace and
rehabilitate core infrastructure assets. Due to the
development patterns of the Village since 1958, much of the
water and sewer infrastructure as well as road deficiencies
exist in the Cook County portions of the Village. However,
given the desire to balance the needs of the entire village
with this initiative, several projects are planned village-wide
now through 2027.
Key IMP Project Impacts and Results
2021 Projects Street
Miles
Water
Miles Total Cost
Melinda/Hiawatha 0.79 0.78 $2,350,800
Vintage 0.77 0.0 $456,000
Cambridge 0.75 0.70 $3,787,000
Thompson/Brandywyn 1.14 0.0 $4,324,000
TOTAL 6.79 1.49 $10,917,800
2022 Projects Street
Miles
Water
Miles Total Cost
COTL Li Station 0 0.1 $3,289,000
Forest/Glendale 1.21 2.7 $6,890,000
Thompson/Brandywyn 1.82 0 $2,842,000
TOTAL 3.03 2.8 $13,021,000
Make significant
Investments into
infrastructure
upgrades and
replacements.
Embark on the
largest
infrastructure
project in the
Village's history.
2.
1.
Complete
planned Capital
Improvements
over time.3.
Minimize
resident
disruption.4.
Secure
sustainable
funding into
the future.5.
The Village Board approved two significant
revenue streams for this purpose, the
implementation of a fixed facility fee and
water/sewer rate increase for water and sewer
main replacement and a local motor fuel tax
to fund road improvements.
In 2020, the Board approved a bond issue
totaling $24 million - $14 million for
water/sewer and $10 million for streets, to
begin our infrastructure modernization
project, with minimal impact on the
property tax levy.
The Village projects investing over $50
million into water, sewer and streets
between 2020 and 2023.
To the extent possible, project sequencing
will be arranged such that entire
neighborhoods will be completed within one
to three years based on outside funding in an
effort to reduce service interruptions and
overall disruption.
The Village Board and staff have devoted a
great deal of time to developing sustainable
practices to improve and maintain our core
infrastructure.
Infrastructure
Modernization
Program
Buffalo Grove will...