HomeMy WebLinkAbout2017 BudgetJanuary 01, 2017
—
December 31, 2017
2017
Draft
Budget
Adopted
Budget January 01, 2017 - December 31, 2017
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Village of Buffalo Grove
Adopted Budget: January 1, 2017 to December 31, 2017
Beverly Sussman, Village President
Dane Bragg, Village Manager
Janet Sirabian, Village Clerk
Jeffrey Berman, Trustee
Steven Trilling, Trustee
Andrew Stein, Trustee
Lester Ottenheimer, Trustee
David Weidenfeld, Trustee
Joanne Johnson, Trustee
Cover Images: Buffalo Grove Days Committee
®
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Pres entation
Award
PRESENTED TO
Village of Buffalo Grove
Illinois
For the Fiscal Year Beginning
January 1, 2016
Executive Director
Table of Contents
Section 1 Transmittal Letter
Dane C. Bragg, Village Manager ................................................................................................................. 1
Section 2: Organization and Services
List of Principal Officials ............................................................................................................................ 13
Organizational Chart ..................................................................................................................................15
Village Commissions, Committees & Boards ............................................................................................ 16
Village Overview ....................................................................................................................................... 17
Section 3: Budget Process and Structure
Budget Process ......................................................................................................................................... 29
Budget Timeline ........................................................................................................................................ 30
Budget Sections ........................................................................................................................................ 31
Basis of Budgeting .................................................................................................................................... 32
Annual Budget vs. Financial Statement .................................................................................................... 32
Fund Structure .......................................................................................................................................... 32
Financial Policies and Goals ...................................................................................................................... 33
Account Numbers ..................................................................................................................................... 34
Current Village Funds ............................................................................................................................... 36
Section 4: Executive Overview
Budget in Brief .......................................................................................................................................... 39
Strategic Planning ..................................................................................................................................... 49
Revenue Trends and Projections .............................................................................................................. 66
Expenditures Trends and Projections ....................................................................................................... 67
Debt Position ............................................................................................................................................ 80
Debt Service Schedules............................................................................................................................. 82
Fund Balance Projections by Fund............................................................................................................ 85
Section 5: General Fund Summary and Detail
General Fund Revenue ............................................................................................................................. 87
Office of the Village Manager ................................................................................................................... 92
Legislative
Legal Services
Finance Department ............................................................................................................................... 102
Human Resources ................................................................................................................................... 108
Fire Department/EMA ............................................................................................................................ 116
Police Department .................................................................................................................................. 124
Community Development Department .................................................................................................. 133
Public Works Management & Administration ........................................................................................ 140
Engineering Services
Building Services/Street Lighting
Street Operations and Maintenance
Forestry/Parkway/Landscape Maintenance
Central Garage
Drainage System
Non-Operating Transfer ......................................................................................................................... 164
Section 6: Capital Improvement Plan
Capital Improvement Request Summary ............................................................................................... 171
Capital Projects Budgeted by Fund ......................................................................................................... 174
Summary Sheet ...................................................................................................................................... 176
Detailed Project Sheets .......................................................................................................................... 179
Reserve for Capital Replacement - Vehicles ........................................................................................... 215
Motor Fuel Tax Fund .............................................................................................................................. 217
Capital Projects – Facilities Fund ............................................................................................................ 219
Capital Projects – Streets Fund ............................................................................................................... 221
Section 7: Enterprise Funds
Golf Course Funds................................................................................................................................... 225
Water & Sewer Operating ...................................................................................................................... 242
Refuse Fund ............................................................................................................................................ 253
Section 8: Internal Service Funds
Information Technology Fund ................................................................................................................ 258
Central Garage Fund .............................................................................................................................. 263
Building and Facility Maintenance Fund ................................................................................................ 267
Section 9: Fiduciary Funds
Police Pension ......................................................................................................................................... 273
Fire Pension ............................................................................................................................................ 277
Section 10: Other Funds
Parking Lot Fund ..................................................................................................................................... 283
Debt Service Fund ................................................................................................................................... 287
Appendix A: Comprehensive Fee & Tax Schedule
Administrative Fees Schedule ................................................................................................................ 293
Appendix B: Financial Policies & Projections
Fund Balance Policy ................................................................................................................................ 321
Purchasing Policy .................................................................................................................................... 323
Investment Policy ................................................................................................................................... 327
Debt Policy .............................................................................................................................................. 339
Fixed Asset and Capital Equipment Capitalization Policy ....................................................................... 347
Revenue Collection Policy.........................................................................................................................355
Five Year Operating Forecast .................................................................................................................. 360
Twenty-Year Water & Sewer Utility Forecast ......................................................................................... 375
Stormwater Fund 20 Year Pro Forma …………………………………………………………………………………………………381
Appendix C: Human Resources
Health Plan Benefits ............................................................................................................................... 385
Employee Staffing Levels ........................................................................................................................ 389
Appendix D: Document Definitions
Glossary .................................................................................................................................................. 395
Acronyms ................................................................................................................................................ 408
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Section 1
Transmittal Letter
Dane C. Bragg, Village Manager
Village Hall • Fifty Raupp Boulevard • Buffalo Grove, IL 60089-2100 • (847) 459-2500
1
VILLAGE OF
BUFFALO GROVE
MANAGEMENT’S LETTER TO THE
CORPORATE AUTHORITIES OF
THE VILLAGE OF BUFFALO GROVE, ILLINOIS
October 28, 2016
Honorable President Beverly Sussman and Board of Trustees:
It is my pleasure to submit to the Village Board the proposed budget for the Village of
Buffalo Grove for the Fiscal Year ending December 31, 2017. The Village Board and
staff share a thoughtful and long-term approach to fiscal stewardship and the
development of the annual operating plan and funding allocations. For 2017, the Village
of Buffalo Grove will again enter the year with a positive operating position and is
forecast to continue that position with a balanced budget. In addition, the Village will
continue its efforts to allocate additional dollars to long-term capital improvements,
aging infrastructure, and facilities.
The Village Board’s commitment to the redevelopment of capital assets in recent years is
unparalleled. Using a multi-pronged approach, the Village team has been able to develop
new revenue sources and allocations for water and sanitary sewer, stormwater, streets,
fleet, the urban forest and more. The Village has committed more than $19.6 million to
street repair and improvements alone in the past five years, surpassing the prior 10-year
investment. As the community nears its 60th anniversary, the need for additional
resources for infrastructure maintenance remains a high priority.
As you review the budget document, you will notice that the year-over-year growth in the
total budget is nominal, matched with a continued strong commitment to capital projects
and a nominal-growth ad valorem tax rate for the forthcoming year. In many ways, the
2017 budget is “status quo” in terms of general operations for public safety, infrastructure
management and health/safety services.
STRATEGIC PLANNING AND MANAGEMENT
Many of the Village’s efforts leading up to the preparation of the 2017 budget center on
the strategic management goals adopted by the Village Board in 2012. As the
organization enters its fifth full year of the adopted Strategic Plan, the Village Board has
embarked on a process to update its top three Board Priorities, focusing on economic
development, financial management and leadership/communication. To date, the
economic development and financial management portions of the Priorities document
have been completed.
Within the 2017 budget, financial resource allocations are directly tied to desired
strategic outcomes, as outlined in Section 4: Executive Summary.
The following strategic themes, as defined by the Village Board, have guided the
development of the budget, as a function of the Village’s vision and mission: Service
Optimization, Organizational Culture, Revenue Growth, Economic Development
and Infrastructure Sustainability. A more detailed analysis of the strategic initiatives
can be found in Section 4: Executive Summary and Section 5: Corporate Fund Summary
and Detail sections. The strategic themes and key performance indicators included in
this budget establish the framework for the Village’s 2017 work plan.
The Village will continue many of its now longstanding
initiatives in 2017. The major themes include continuing to
expand access to electronic services for residents and
customers, continuing the development of the community’s
economic development strategy, evaluating programs and
services to maximize efficiency, benchmarking service
level expectations and quality, as well as developing
employees through training and collaborative leadership
efforts.
As it pertains to financial goals, the Village will continue to
maximize revenue capture through audits of revenue
sources, controlling expenditures, recommending funding
strategies for vehicle and equipment replacements and
assessing financing options to continue priority street, water
and sanitary sewer projects.
The Village continued its commitment to long-term operational and capital planning by
updating and presenting its five-year Operating Financial Forecast 2017-2021 and the
20-Year Water and Sewer Pro-Forma. The 2017 projections were previously presented
to the Village Board on July 11, 2016 and the Five-Year Stormwater Utility Pro-Forma
was presented to the Village Board on Octover 14, 2016. A copy of each is included in
Appendix B.
The Village Board made a strategic decision in 2016 to leave the Intergovernmental Risk
Management Agency (IRMA) in 2017, a risk management pool. For 2017, the Village
will contract its risk management program and excess coverage through Arthur J.
Gallagher brokerage, with the intent to develop a large community pool for reinsurance in
future years. All costs for the 2017 program are included in the budget as proposed.
The Village’s overall strategic efforts since 2012 have resulted in a significant
restructuring of the expense ledger and corresponding reduction in the cost of providing
services. As discussed throughout the budget, the Village will continue its steadfast
pursuit of strategies that provide for continued revenue growth and cost reductions, in
2018 Outcomes
Customer Service
Ratings at 85% or
greater
General Fund
Reserves >35%
Capital Equipment
Funding = 50%
Program Based
Budget
Sales Tax Increases
15%
E-Services Portal
2
order to adequately fund future costs associated with infrastructure replacement and
legacy costs associated with pensions.
GENERAL OPERATIONS
The Village’s 2017 financial plan continues prior work in the areas of service efficiency,
cost reduction and capital investment targeted to highest priorities. As outlined later in
this correspondence, the Village will continue its plan to reinvest in core infrastructure
assets through its Capital Improvement Plan. No major areas of alternate service
delivery, insourcing or outsourcing have been identified for pursuit in 2017. Projected
total personnel will remain constant at 270 for the year, with full-time personnel expected
to reduce by one to 212 and part-time staff to increase from 57 to 58, year over year.
Over the past five years, total staffing Village-wide has decreased nearly 20 percent
through attrition and alternate service delivery models, from a peak of 327 in 2010.
The Village continues to struggle with its golf operations, where expenses outstrip
revenues at both facilities. Infrastructure replacement projects are warranted for
irrigation systems, fairway and tee box reconstruction and clubhouse improvements. The
Village has not been able to allocate funds for capital replacement of these items due to
weak demand for golf both in the region and the nation. For 2017, the head professional
estimates a 4.35 percent increase in revenues for both courses, against $3.2 million in
expenses. The 2017 expenditure amount includes $518,000 for remodeling and tenant
improvements at the BGGC clubhouse in tandem with remodeling of the restaurant
premises.
The post-recession revenue trend for golf is a 0.64 percent average year-over-year decline
in fee revenue. To offset the highly competitive market for golf patrons, the Village has
taken extraordinary steps to reduce operating costs while maintaining the highest level of
service possible at both the Buffalo Grove Golf Club and Arboretum Club courses. To
that end, the Village Board approved an agreement to outsource maintenance operations
in 2015, providing a 27.9 percent operational savings in year one, with a projected
(contractual) savings of $997,840 over five years. Even with these measures, operating
transfers totaling $299,563 are projected for the two courses in 2017, a decrease of
$2,286, of 0.76 percent, year-over-year.
Over the past three years, the Village has made a conscious effort to move to a program-
based budgeting model, developing service tiers and internal service funds for village-
wide in-house cost centers. Within Section 8: Internal Service Funds, the information
technology, building maintenance and central garage activities are budgeted. Within
each of the department or division budgets in Section 5: Corporate Fund Summary &
Detail can be found the chargeback for each service to the department’s operating
expenses. For 2017, elements of the new program based budget model will be shared for
review and feedback under separate cover.
General Fund Revenues
FY 2017 General Fund revenue is expected to increase $285,621, or 0.68 percent, over
2016 estimated actual, primarily due to reduced revenues from the planned departure of a
local retailer. Total General Fund revenue is estimated at $42,010,229.
3
For existing revenue sources, state and home rule sales tax
returns are projected to increase only slightly from 2016
estimated actual. State shared income taxes are projected
to decrease 7.19 percent from 2016 budget. Utility use
taxes for natural gas and electric service and rental
registration fees are expected to remain constant.
The ad valorem (property tax) levy is discussed in further
detail within this correspondence and within Section 4:
Executive Overview. The overall increase in the tax levy
is 2.64 percent year-over-year, factoring in $650,000 in
debt service abatements associated with the Series 2016
bond payment. The Village will need to sustain
significant debt service abatements until the 2021 tax levy to avoid material increases to
commercial and residential property owners.
The General Fund revenue projections included in the 2017 Budget are consistent with
the five-year projections presented to the Village Board on July 11, 2016. The
projections have been further refined based on budget balancing strategies and are
included in Appendix B: Financial Policies and Projections. Additional information
concerning revenue projections and trends may be reviewed in Section 4: Executive
Overview.
General Fund Expenditures
The Village has aggressively managed expenditures in recent years with a strong focus
on lean and efficient operations and competitive third-party contracts. General Fund
actual expenditures as a percentage of budget are expected to be 98.4 percent for 2016.
The 2017 General Fund Budget will increase $331,520, or 0.80 percent, year-over-year.
The proposed expenditure plan includes all necessary personnel wages and benefits,
commodity costs and general operations to operate the organization in accordance with
the Village Board’s expectations.
Fund Balance
The Village of Buffalo Grove utilizes an adopted fund
balance policy to provide for an unassigned fund balance.
As a home rule municipality, the Village is not subject to
state-mandated fund reserve policies. The corporate fund
reserve policy was decreased in 2010 from 35 percent to 25
percent of the subsequent year’s budget (less pension
transfers), or approximately three months of operating
expenditures.
The Village’s fund balance policy is structured to provide
sufficient cash-flow as necessary. The Village’s proactive
fund management has been cited by Standard & Poor’s and Moody’s Investor Services as
a key factor in maintaining a AAA and Aaa bond rating, respectively. These ratings were
again affirmed for existing debt and new ratings during the issuance of the Series 2016
bonds.
Projected Revenue Changes
$242,364 – Sales Tax
(Combined)
$497,468 – Property Tax
$130,635 – Real Estate
Transfer Tax
$214,200 – Building
Permits and Fees
$90,489 – Use Tax
Projected Fund Balance
25% Reserve -
$9,569,594
35% Reserve -
$13,397,432
Projected Reserve -
$14,991,907 (39.2%)
4
For 2017, an unassigned fund balance of $9.57 million is required to maintain sufficient
operating cash within the General Fund. Unassigned fund balance is projected to be
$14.9 million, or 39.2 percent of the 2017 budget, less capital project/equipment and
capital reserve transfers as of December 31, 2017. The proposed budget does not
anticipate the use of unassigned fund balance for general operations. Use of fund balance
is proposed for non-operating funds and for capital expenditures in the Refuse and Water
& Sanitary Sewer Funds.
ECONOMIC AND POLITICAL CLIMATE
The Village and the Chicago metropolitan area continue a slow comeback from the 2008
recession. At the national level, the seasonally adjusted unemployment rate has hovered
between 4.7 and 5.1 percent for the past year 1. While the unemployment rate has
declined significantly since the 10.0 percent peak in October 2009, the labor force
participation rate has not risen above 63 percent since March 2014, indicating weakened
interest in sustained job searches for the unemployed or underemployed. Pre-recession
labor force participation rates were over 65 percent. Other
national factors affecting or potentially affecting the Village
include the implementation of the Affordable Care Act,
specifically the Cadillac Tax provision, and the yet
unapproved Marketplace Fairness Act, which would create
a national basis upon which to tax internet sales.
Because the Village straddles two counties (Cook and Lake)
and due to the proximity of the community to the Tri-State
Tollway employment corridor, it is instructive to examine
the projections for employment growth for the Lake County
Local Workforce Investment Area (LWIA). For the 2012-
2022 projection period, the LWIA is expected to grow 1.43 percent, or 53,628 total
positions. Industries with the greatest growth potential include management,
scientific/technical services, computer system design related services, other health
practitioners and home health care services. Likewise, health occupations also show the
highest categorical projected growth rates, including home health aides, occupational
therapists, physical therapist and therapist aides, orthotists and prosthetists. Postal
service occupations expect the sharpest decline by 2022, with mail carriers, sorters,
superintendents and clerks rounding out the bottom of the list 2. The Village of Buffalo
Grove’s unemployment statistics have consistently beat the national and state averages,
with the August 2016 rate at 4.2 percent, 1.1 percent better than the metro area rate and
1.3 percent better than the state, for the same period 3. In looking at trend, both job
growth and unemployment reduction are happening at a faster rate in Buffalo Grove than
in other parts of the metro area and the state.
1 Source: U.S. Department of Labor, Bureau of Labor Statistics, September 2016, Seasonally Adjusted
2 Source: Local Workforce Investment Area Projections, 2012-2022, Illinois Department of Employment
Security 3 Source: Illinois Department of Security, Labor and Unemployment Statistics, September 2016, Not
Seasonally Adjusted
Key Stats
$295,000 – Median
Home Value
7.0% - YoY Increase –
Home Value
4.2% - Unemployment
Rate
0.85% - Assumed
Investment Yield
5
The local housing market continues a slow but steady recovery from the 2008 recession,
with median home sale prices sliding slightly from a six-year year high of $322,800 in
September 2015 4 to the current $289,400. The median sale price peaked in October of
2006 at $359,550, and subsequently hit its lowest point over a ten-year period at
$166,000 in April 2013. Real estate data tracker Zillow projects a 3.7 percent increase in
median home values over the next year.
The State of Illinois remains the greatest external economic threat to the Village’s
operations. In addition to the protracted budget debate that ended in a compromised
spending bill, there remains grave concerns over the state’s ability to pay its backlogged
bills. As of October 19, 2016, the state had a staggering $9.9 billion 5 in unpaid bills (up
from $4.4 billion one year ago). The state has struggled in recent months to fund health
and social services, transportation and pension obligations.
There remain several state-level factors affecting the Village’s ability to operate
effectively. Several proposals remain on the table which, if enacted, could severely
reduce the Village’s revenues – including a possible property tax levy freeze and a 50
percent reduction in state income tax revenues earned through the Local Government
Distributive Fund (LGDF). While the property tax freeze proposal generates an
immediate reduction of about $500,000 in Year 1, the LGDF reduction could create a
recurring revenue reduction of $2.1 million. Combined, these two proposals would
reduce the Village’s general fund revenues by 6.2 percent.
In addition, the budget impasse and ensuing political rhetoric has had a negative impact
on the market for bonds issued by Illinois governments in general. The State of Illinois
now has the lowest bond rating of all states (Baa2/negative outlook, Moody’s Investor
Services) and the City of Chicago’s bond rating is at Ba1, currently the only city in the
United States with a junk rating. Recent attempts to issue debt by the State, City of
Chicago and several state-funded universities have been met with limited buyers and high
interest costs. On October 21, Moody’s warned that “possible delays in monthly pension
contributions in the current fiscal year is credit negative, and could prompt the state’s
underfunded retirement plans to sell assets to pay retiree benefits. Such delays would
most likely affect state contributions in November, when tax revenues are typically
caught in a seasonal slowdown.” To date, constitutional officers and legislators have
been unable to agree on a strategy for funding pensions on a going forward basis.
The Village has, however, been able to maintain a strong balance sheet in the face of dire
external fiscal pressure. By restructuring cost centers, realigning services and seeking
diversified revenue sources, the Village has righted its economic ship in many respects.
There are still many long-term hurdles to cross with respect to infrastructure funding as
outlined in multiple projections prepared by infrastructure class throughout the year.
Economic development remains a cornerstone of the Village’s efforts to build
independence from state shared revenues, reduce the reliance on property tax and to
develop reserves for future infrastructure replacement. The Economic Development
4 Source: Zillow Home Index, Zillow.com
5 Source: Comptroller Leslie Geissler Munger, “The Ledger,” illinoiscomptroller.gov.
6
Strategic Plan was completed in 2015, and the Lake Cook Road Corridor Study was
approved in 2016, with substantial completion to occur in 2017. Work continues on the
branding and marketing initiative for economic development, as well as the development
of an annexation strategy.
Over the past year, the Village has successfully negotiated and attracted new
developments that will pay dividends into the future, including the expansion of
ConnexionES in the Aptakisic Creek Corporate Center, ThermFlo headquarters on Busch
Parkway, and the proposed development of a 240,000 square foot Woodman’s grocery
market at Deerfield and Milwaukee Avenues. These projects are anticipated to create
significant sales tax revenue streams for infrastructure development. Unfortunately,
some of this good news was offset by the recent announcement that long time retailer
Binny’s will relocate to Wheeling in Spring, 2017. In the balance, however, the Village’s
tax-generating additions will more than offset any relocation by existing retailers.
The prolonged economic stagnation has negatively affected the Village’s ability to
generate investment income. The 2017 budget anticipates corporate investment returns
of 0.85 percent, exclusive of pensions. The Village has maintained an aggressive
portfolio with regard to liquidity, holding as much as 60 percent of investments in short-
term funds and in anticipation of a future investment rate increase. Given the volatility of
state shared revenues, it is imperative that sufficient cash be held in short-term
investments, which ultimately reduces the Village’s investment yields. Pension
performance has been consistent and solid, with the Police and Fire pensions earning 0.33
and 1.30 percent returns, respectively, for the period ending December 31, 2015.
COMPREHENSIVE BUDGET
All Fund Revenue, Expense and Fund Balance
Eighty-eight percent of General Fund expenditures are financed with a variety of tax
revenues including property, replacement, state income and sales, local use and other
miscellaneous taxes. The total budget will increase 0.28 percent, or $212,005 from 2016.
The budget increase is largely driven by the increase in debt service due to the Series
2016 bond issue with partial offsets by reduced capital expenditures year-over-year.
Capital projects total $6.3 million for operating and enterprise projects, or 8.4 percent of
the total budget. The following table provides a summary of all funds.
Fund
12/31/17
Revenue & Other
Sources
General Fund $42,010,229
Special Revenue Funds 1,211,200
Debt Service Funds 1,673,895
Capital Project Funds 3,978,253
Enterprise Funds 15,158,156
Internal Service Funds 4,571,125
Permanent/Pension Funds 10,998,033
Total $79,600,891
7
Balance Sheet Considerations
The Village issued $6.1 million in new debt in 2016 for the street improvement program
and continues to take an aggressive approach to managing debt, having retired $525,000
in debt obligations in FY 2016. For 2017, the Village will retire an additional $1,275,000
on the Series 2010-A, Series 2010-B, Series 2012 and Series 2016 issues. By year-end
2017, the Village will have outstanding bonded debt totaling $14,365,000 with all current
debt maturing no later than 2031.
The Village maintains a line of credit in the amount of $8.0 million for the Emerald Ash
Borer project and to provide cash as needed for capital projects. To date, the Village has
drawn $4.5 million of the total line, $1.5 million of which was drawn in 2016. The
Village has used the line of credit entirely for the EAB response program. In 2017,
further draws in the amount of $1.0 million are contemplated to provide cash flow for
water and sewer system projects.
Village staff evaluated refinancing the line of credit balance with a refunding bond series
versus extending the line and recommended extending the line of credit for a period of
three years. With Village Board concurrence, an extension was negotiated with PNC
Bank in 2016.
The Village’s strategy to fund long term depreciation for capital facilities and equipment
was restructured in 2014 with the rebalanced budget process. A total of $1,126,557 in
reserve transfers for vehicles, building and infrastructure asset replacement is included in
the budget.
CAPITAL INVESTMENTS
In addition to contributions for depreciated assets, the Village
expends funds on an annual basis for the maintenance and
replacement of certain assets through its Capital Improvement
Plan. The plan is reviewed throughout the year with the
Village Board and is approved annually as part of the budget
process. The purpose of the plan is to present a five-year
projection of anticipated projects in order to secure necessary
funding allocations to complete the projects. The Capital
Improvement Plan is often oversubscribed, meaning there are
more funds requested than available. For this reason, the plan
is financially constrained and made a part of the budget process.
For 2017, the capital plan budget is $6,273,003 on requests totaling $12,694,303. The
unbudgeted portion of the plan is driven by street maintenance work ($3.4 million), water
and sanitary sewer main replacement projects ($1.9 million) and buildings and grounds
improvements ($500,000). The Village completed an extended street improvement
program in 2016. In total, $19.6 million has been spent on street improvement projects
since 2012, more than the prior 10-year period.
The capital plan has shifted from technology-laden expenditures in recent years to bricks-
and-mortar system replacements within facilities. Aging facilities continue to place a
Capital Program
$1,126,557 – Capital
Reserve Transfer
$7,943,166 – Capital
Projects & Equipment
12.8% of Total Budget
8
significant strain on the capital program. For 2017, $2.3 million is budgeted in various
facility improvements, with more than a quarter of the projects devoted to replacement of
HVAC systems. Total building maintenance expenses over the prior five years is $2.39
million, roughly equivalent to the 2017 request. More than $3.3 million in maintenance
and remodeling requests are projected through 2021, exclusive of requested additions and
building modifications. Factoring in the proposed fleet services expansion and bunkroom
addition at Station 26, the five-year building maintenance program swells to $11.3
million.
Water and sewer projects comprise 30 percent of the total capital expenditures budgeted
for the year, while 24 percent of the capital program is allocated to streets. For more
detailed information on the proposed capital plan, please refer to Section 6: Capital
Improvement Plan.
In addition to facility and infrastructure investments, the Village will also fund a $1.6
million equipment replacement program for 2017. Included within this program
allocation is the down payment for the replacement of one aerial ladder, one pumper
apparatus and one ambulance for use by the Fire Department. In total, fire equipment
purchases comprise 70 percent of the equipment replacement program for the coming
year. A full listing of equipment replacement priorities is included in Section 6: Capital
Improvement Plan.
ENTERPRISE ACTIVITIES
Water and Sewer Utility
The Village Board approved a rate increase for water and sanitary sewer services on July
9, 2012, which includes a four percent annual increase for infrastructure reserve. The
combined rate will increase from $5.69 per 1,000 gallons consumed to $5.91, effective
January 1, 2017.
The Lake County Department of Public Works prepared a rate analysis for the Southeast
Wastewater Treatment Plant and published its rate for Lake County-Buffalo Grove
residents in October 2015. The base rate will remain at $4.00 per 1,000 gallons for the
years 2016-2018, while the summer sewer credit factor will increase from 110 percent to
120 percent of average non-peak consumption.
The Village Board, along with the other member communities of Wheeling, Arlington
Heights and Palatine, approved a customer agreement between the City of Des Plaines
and the Northwest Water Commission in 2014 to provide a supplemental water supply.
Des Plaines began receiving water from the Commission in August, 2016 and is expected
to pump 125 million gallons per month. The revenue generated by the sale of water to
Des Plaines has been reserved to service debt payments associated with system looping
and standpipe projects.
Stormwater Utility
The Village Board enacted a stormwater utility fee, effective January 1, 2016. The fee is
$5.08 monthly for single family residential parcels and a calculated fee is applied to all
other parcels based on total lot area. There is no change to the fee for 2017.
9
FEES, SALES & USE TAXES AND THE PROPERTY TAX LEVY
The following rate/tax amendments are proposed in the FY 2017 budget:
Property Tax Levy
The 2016 (payable 2017) tax levy includes fully funded Fire, Police and IMRF pension
allocations, as determined by an independent actuary, as well as funding for public safety
and debt service, for a total Village levy of $16.6 million. Of the total levy request,
$1,669,894 will be used to service debt on the Series 2010-A, Series 2010-B, Series 2012
and Series 2016 bonds. Including abatements totaling $650,000, the net tax levy is
$15,594,223, or a 2.64 percent increase year-over-year.
No additional fee, rate or tax amendments are proposed for the year except as previously
approved by the Village Board.
PERSONNEL FACTORS
Staffing
Personnel levels are projected to remain stable, with 21 full-time and 59 part-time
positions included in the budget. For all positions, the ratio of municipal employees per
1,000 residents is 6.4/1,000, compared to a ratio of 7.8/1,000 in 2010.
Wages
It is desirable that the Village provide for a wage enhancement in 2017 in order to
maintain a competitive environment for talented individuals. A 2.0 percent general wage
increase has been included in the salaries of full-time and part-time personnel. Under the
pay-for-performance plan for non-represented employees, two allocations are provided
for performance incentives in 2017, $154,000 for satisfactory performance range
movement and $66,000 for performance that exceeds expectations, for a total of
$212,000, or a 3.7 percent increase year-over-year.
In total, the wage pool for 2016 is $22,132,708, a 2.9 percent increase against 2016
budget. The wage pool includes base wages, compensatory time payouts, overtime, step
increases, and pay for performance incentives for all employees.
The Village is currently operating under collective bargaining agreements with IAFF
Local 3177 through April 30, 2017, and with the Metropolitan Alliance of Police through
December 31, 2016. Both parties have requested to meet to negotiate new collective
bargaining agreements in the coming months.
Training
It remains a high priority to provide necessary training and professional development for
Village personnel, both in terms of providing for a well-rounded workforce and to
develop the next generation of leaders within the organization. The budget includes
training and professional development for employees totaling $219,853 and inclusive of
in-house training, tuition reimbursement and travel expenses. The Village’s 2017 cost-
10
per-employee for training activities is $814, some 35 percent or $219 less per employee
than the national average 6 and 12.2 percent lower year-over-year.
Employee Health & Wellness
For 2017, the Village will continue its membership with the Intergovernmental Personnel
Benefits Cooperative (IPBC) with network access provided through Blue Cross Blue
Shield of Illinois. The Village’s association with IPBC provides balance and
predictability to its self-funded health plan, with the incorporation of a nine percent fund
reserve mandated by the cooperative. Premiums will increase three percent, or
approximately $138,000, year-over-year. For additional information on the health plan
rate structure, please review Appendix C: Human Resources.
Acknowledgements:
The development of an annual budget is both a monumental and rewarding task,
reflecting the contributions of the entire organization. This year’s financial planning
process has been both challenging and rewarding. I cannot overemphasize my gratitude
to the entire Village staff for their diligence and perseverance in developing this
important financial tool. Many thanks to Director of Finance Scott Anderson and
Management Analyst Evan Michel for their contribution to creating the budget document.
Grateful appreciation is extended to Andrew Brown, Deputy Finance Director, Jennifer
Maltas, Deputy Village Manager, Mike Reynolds, Director of Public Works, Fire Chief
Mike Baker, Police Chief Steve Casstevens, Arthur Malinowski, Director of Human
Resources, Chris Stilling, Community Development Director, Franceska Fabyan,
Accountant, Darren Monico, Village Engineer, Brett Robinson, Purchasing Manager,
Geoff Tollefson and Joe Bridges of Golf, Nicole Woods, Village Planner, Brian Sheehan,
Building Commissioner, Mike Skibbe, Deputy Public Works Director and Peter Cahill,
Management Analyst for their cooperation, responsiveness and ability to get the job done.
Finally, the Village Board deserves sincere appreciation for their stewardship over
Village finances and thoughtful planning for the Village’s future.
Respectfully,
Dane Bragg,
Village Manager
6 Source: 2015 Industry Training Report, training expenditures per learner, small companies,
trainingmag.com.
11
Section 2
Organization and Services
List of Principal Officials
Organizational Chart
Village Commissions, Committees and Boards
Village Overview
Principal Officials
Elected Officials
Beverly Sussman Janet Sirabian
Village President Village Clerk
Jeffrey Berman Steven Trilling Andrew Stein
Village Trustee Village Trustee Village Trustee
Lester Ottenheimer David Weidenfeld Joanne Johnson
Village Trustee Village Trustee Village Trustee
13
Principal Officials
Appointed Officials/Department Directors
Dane Bragg Jennifer I. Maltas
Village Manager Deputy Village Manager
Christopher Stilling Scott Anderson Steven R. Casstevens
Community Development Finance Director Police Chief
Director
William Baker Michael Reynolds Art Malinowski
Fire Chief Public Works Director Human Resources Director
14
Organizational Chart
Residents of Buffalo
Grove
Village Board
Village Manager
Community
Development
Building and Zoning
Enviromental Health
Planning and
Economic
Development
Police Department
Patrol
Investigations Youth
Services
Admin
Police Records
Fire Department
Emergency
Medical
Services
Fire Suppression and
Rescue
Fire Prevention
&Education
Emergnecy
Management Agency
Office of the Village
Manager
Legal
Human Resources
Golf Operations
Information
Technology
Finance
General Services
Deputy Village Clerk
Village Treasurer
Public Works
Admin
Engineering
Building
Maintenance
Central Garage
Streets, Drainage &
Sewer
Forestry and Grounds
Water
Village Commissions, Committees & Boards
Village Commissions, Committees, and Boards are appointed by the Village’s Corporate Authorities. The list of
Commissions can be found in Title 2, Administration and Personnel, within the Village’s Municipal Code. The
Municipal Code can be found on the Village’s web site at www.vbg.org. Each Commission is established by
parameters for its operation including but not limited to duties of the Commission, members, meeting schedule
and purpose.
Individuals interested in volunteering for a Village Commission, Committee, or Board are encouraged to complete
Online Volunteer Application available on the Village’s web site or by contacting Village Hall. Appointments are
made by the Village President with the concurrence of the Board of Trustees. The following is the list of approved
Commissions, Committees, and Boards as set forth in the Municipal Code.
• Chapter 2.14 Police Pension Fund
• Chapter 2.24 Health Commission
• Chapter 2.26 Board of Local Improvements*
• Chapter 2.28 Board of Police and Fire Commissioners
• Chapter 2.32 Electrical Commission
• Chapter 2.40 Arts Commission
• Chapter 2.46 Planning and Zoning Commission
• Chapter 2.48 Ethics Commission
• Chapter 2.50 Firefighters Pension Fund
• Chapter 2.52 Transportation Commission
• Chapter 2.58 Commission for Residents with Disabilities
• Chapter 2.60 Buffalo Grove Days Committee
• Bicycle Path System Ad-Hoc Committee, approved by Resolution No. 2010-37 on October 18, 2010.
* The Board of Local Improvements consists of the Village Engineer and Members of the Village Board.
Village Overview
The Village of Buffalo Grove is located approximately 33 miles
northwest of downtown Chicago and 20 miles north of O’Hare
International Airport. The Village’s land area is 9.3 square miles, with
21.7 percent of the area in Cook County and 78.3 percent in Lake
County. Neighboring communities include Arlington Heights,
Lincolnshire, Long Grove, Riverwoods, Vernon Hills, and Wheeling.
The Village’s current population is 41,778 (2013 U.S. Census Bureau
estimate).
Buffalo Grove was incorporated in 1958 and experienced strong
growth in population and land area for several decades. The Village’s Comprehensive Plan projects the Village’s
land area could reach approximately 11.2 square miles with a total population of 48,000.
The Village has excellent transportation access for residents, businesses, employees, and visitors. The Village is
served by the Metra North Central rail line connecting to downtown Chicago and O’Hare airport. Pace bus service
provides access to adjacent communities, the Metra Milwaukee District North rail line, and the Skokie Swift CTA
Yellow Line. The regional road system serving the Village includes Aptakisic Road, Buffalo Grove Road, Lake Cook
Road, and state routes 21, 22, 45 and 68, with direct links to Route 53 and Interstate 94.
The Village’s commercial base includes several corporate business parks, a diverse retail sector, and a wide range
of professional services, including medical facilities. The Village’s residential areas include single-family
neighborhoods, townhomes, condominiums, and apartments. The housing stock is very diverse, with units of
different sizes and designs available at various price points to serve the community’s population.
The Village is served by four elementary school districts and two high school districts, all of which consistently
receive acknowledgement for providing high quality education for children and young adults in the community.
Buffalo Grove is served by two library districts and two park districts. The Village has over 800 acres of parks and
open space, including two municipal golf courses and a substantial bike path and sidewalk network. Numerous
opportunities for cultural and entertainment activities are available for residents and visitors.
Community Characteristics
The following statistical data and graphics provide a demographic profile of the community. The information is
2010 Census data unless otherwise noted.
Notable trends in the Village’s population include the increasing number of middle age and senior adults,
decreasing household size and increasing household and per capita income.
• Median age: 42.9 (2011-2013 American Community Survey 3-Year estimates)
• Median household income: $94,391 (2010-2012 American Community Survey 3-Year estimates)
• Per capita income: $45,077 (2010-2012 American Community Survey 3-Year estimates)
• Total housing units: 16,997 (2014 Village estimate)
• Persons per household: 2.55
• Owner occupied units, persons per household: 2.63
• Renter occupied units, persons per household: 2.18
Housing Value
The following information provides the average and median residential sale price from Village Real Estate Transfer
Tax Records, January 2015 - December 2015:
Number Sold Average Sale Price
Single Family Detached 442 352,000
Single Family Attached 145 238,000
Multi-Family 185 133,000
All Residential 772 241,000
Village of Buffalo Grove
Statistcal Breakdown
2014 Housing Distribution
it it it it it it it it it it
it it it it it it it it it it
it it it it it it it it it it
it it it it it it it it it it
it it it it it it it it it it
Multi· Family Housing IS%
Si ngle Family Housing 85% Land Use
Rlghl·Of·W•y-6.0%
Parks and Op~n Space 14 0%
PubUc 40 %
-Sin9lt F.1mity Ott~ht-<1 44 .0%
Multiple Fam ily 4 0% Single Family Attache-d 9 0%
Age of Village Residents
4k
2k
Ok
Aqc Groups
• Men •women
19
60k
c 40k
0
·~
~
~ a.
0
CL 20k
Ok
lOOk
SOk
Ok
Village of Buffalo Grove
2.0%
2 .0%
• Less than 9th Grade
• Bachelor's Degree
Statistcal Breakdown
Village Population 1980-2014
Year
Educational Attainment
• 9th-12th Grade • High School Graduate • Some College
Graduate or Professional Degree
Median Household Income 1980-2014
not adjusted for inflation
• House Hold Income 0 Per Capita Income
25.0%
• Associate's Degree
20
15 10 5 0 5 10 15
Age 0 to 4Age 5 to 9Age 10 to 14Age 15 to 17Age 18 to 20Age 21 to 24Age 25 to 34Age 35 to 44Age 45 to 49Age 50 to 54Age 55 to 59Age 60 to 64Age 65 to 74Age 75 to 84Age 85 and over
Percent
Ag
e
C
l
a
s
s
Population Pyramid for Buffalo Grove, 2000
% Female
% Male
10 5 0 5 10
Under 5 years 5 to 9 years 10 to 14 years 15 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years 60 to 64 years 65 to 74 years 75 to 84 years Age 85 and over
Percent
Ag
e
C
l
a
s
s
Population Pyramid for Buffalo Grove, 2010
% Female
% Male
21
Village Government
Home Rule Authority
The Village of Buffalo Grove is a Home Rule Unit by virtue of the provisions of the Constitution of the State of
Illinois of 1970. Home Rule allows a community to take actions not specifically prohibited by the state statutes.
Conversely, a non-home rule community can only undertake those actions specifically allowed for in the state
statues. Home rule enables a municipality or county to establish its own system of self-governance without
receiving a charter from the state. Home rule shifts much of the responsibility for local government from the state
legislature to the local community. The most significant powers granted to a home rule community include the
ability to enact its own police powers (health, safety, morals and general welfare), to issue bonds without
referendum and exemption from property tax caps under the Property Tax Extension Law Limit (PTELL).
Council-Manager Form of Government
The Village established the council-manager form of government by referendum on July 1, 1980. The council-
manager form is the system of local government that combines the strong political leadership of elected officials in
the form of a council or board, with the strong managerial experience of an appointed local government manager.
The form establishes a representative system where all policy is concentrated in the elected board and the board
hires a professionally trained manager to oversee the delivery of public services. Under council-manager form,
those duties not specifically reserved by the elected body pass to the Village Manager and his/her professional
staff.
Equalized Assessed Value
The equalized assessed value, or EAV, is the result of applying the state equalization factor to the assessed value of
a parcel of property. Tax bills are calculated by multiplying the EAV (after any deductions for homesteads) by the
tax rate.
Below are the Cook County, Lake County, and total EAV of property within the Village.
TAX YEAR COOK COUNTY % Increase
(Decrease) LAKE COUNTY % Increase
(Decrease) TOTAL VALUE % Increase
(Decrease)
2006 351,925,896 2.49% 1,325,296,511 4.78% 1,677,222,407 4.29%
2007TC 402,913,368 14.49% 1,407,908,107 6.23% 1,810,821,475 7.97%
2008 430,222,803 6.78% 1,450,871,616 3.05% 1,881,094,419 3.88%
2009QL 453,182,604 5.34% 1,443,599,910 (0.50%) 1,896,782,514 0.83%
2010TC 405,013,042 (10.63%) 1,369,087,745 (5.16%) 1,774,100,787 (6.47%)
2011 370,243,748 (9.39%) 1,294,187,616 (5.47%) 1,664,431,364 (6.18%)
2012 335,075,013 (10.50%) 1,196,068,204 (8.20%) 1,531,173,377 (8.70%)
2013TC/QL 279,396,765 (19.93%) 1,137,719,248 (5.13%) 1,417,116,013 (8.05%)
2014 283,496,811 1.45% 1,141,563,977 0.34% 1,425,060,788 0.56%
TC= Triennial property assessment cycle (Cook County)
QL= Quadrennial property assessment cycle (Lake County)
22
Economic Development Strategic Plan
In 2016, the Village of Buffalo Grove adopted an Economic Development Strategic Plan (Plan). The Plan represents
the culmination of several months of research and collaboration with the Village Board, Steering Committee,
business leaders and the public. The Plan is meant to be a long-
term guide in developing and implementing policies that will
position the community for economic development
opportunities now and in the future.
The Plan begins with the Introduction, which is followed by
three (3) sections that correspond with the plan’s major
themes of Economic Growth, Land Use & Development and
Quality of Life. The Plan concludes with the Implementation
Matrix, which summarizes the policy and program
recommendations.
The Plan provides the following key policy recommendations:
• Creating a Vision. The Plan recommends that the Village create a vision for the community through
a revised comprehensive plan, plans for various subareas, and an annexation strategy.
• Enhancing Administration. The Plan recommends the Village streamline and update its regulations
and processes through measures such as updating the Municipal Code’s content, format, and
organization.
• Improving Livability. The Plan proposes the Village diversify its housing stock to cater to millennials,
empty-nester, and young families; monitor demographic, economic, and development trends; and
continue to participate in the Northwest Suburban Housing Collaborative.
• Increasing Accessibility. The Plan advises the Village to enhance the accessibility to, from, and
around the Village. This accessibility initiative encompasses multimodal infrastructure to ensure
connectivity for residents, workers, and other travelers by automobile, train, bus, bicycle, and on-
foot.
• Enhancing Communication. The Plan encourages the Village to continue to work on communication
strategies such as the branding and marketing campaign to help market the Village to businesses,
developers, and residents.
• Maintaining and Strengthening Partnerships. The Plan recommends the Village maintain and grow
its relationships with its public, nonprofit, and private partners.
Lake Cook Corridor Market Study and Plan
Upon the adoption of the Economic Development Strategic Plan, one of the Plan’s key action steps for 2016 was to
begin to develop a vision for the Village’s Lake Cook Road Corridor via a consultant-led plan. In September, 2016,
the Village Board awarded a contract to Hellmuth, Obata & Kassabaum, Inc. (HOK) to begin the Lake Cook Corridor
Market Study and Plan. The Corridor Plan will assist Buffalo Grove in taking advantage of the Corridor’s strong
visibility, mix of land uses, and opportunities for development.
HOK will be the project leader and their proposal is complemented by
the services of JONES LANG LASALLE (JLL) for market analysis, KLOA
for transportation, and SPACECO regarding civil, environmental, and
watershed items. To round out the team, IMAGES, Inc. will lead the
stakeholder and community engagement process. The overall project
will consist of five (5) stages, comprising a robust community
engagement program with a project website and multiple public
meetings. The project is expected to be completed by the end of 2017.
Recent Development and Business Activity
850 Asbury Drive
Ridgeline Property Group is currently under construction to develop a new 160,000 square foot industrial building
at 850 Asbury Drive. The developer will demolish the existing building and construct the new state of the art
warehouse/office facility and associated infrastructure.
Rendering of Proposed Building at 850 Asbury Drive
Therm-Flo Inc. and Zonatherm Products Headquarters- 875 Busch Parkway
A formerly vacant property at 875 Busch Parkway in the Corporate Grove industrial park is being developed with a
new 40,437 square foot office and warehouse building. Therm-Flo Inc. and its sister company Zonatherm Products
have outgrown its current facility in Wheeling and have chosen to expand in Buffalo Grove. Therm-Flo Inc. designs,
sells, and services HVAC and generators specifically for commercial data centers and Zonatherm Products is a
commercial power system distributor.
Rendering of the Proposed Building at 875 Busch Parkway
24
Woodman’s Food Market
Woodman’s Food Markets and Shorewood Development Group are proceeding with plans for a 25-acre
commercial development at the western corners of Deerfield Parkway and Milwaukee Avenue. The development
will be anchored by a 242,000 square foot Woodman’s Food Market located on the northwest corner of the
intersection. Woodman’s also plans to develop a fuel center, convenience store, quick lube and carwash on the
north side of Deerfield Parkway. Additional commercial and retail developments would occupy the remaining 7-
acres at the southwest corner of the intersection, which would be developed by Shorewood Development Group.
Example Photo of Woodman’s Latest Store in Sun Prairie, WI
Connexion
Connexion is an electrical equipment supplier located in a 60,000 square foot warehouse at 1700 Leider Lane in
Buffalo Grove. In 2016, Connexion announced plans to expand into the adjacent space doubling their square
footage to over 120,000 square feet.
25
Link Farm
In 2016, K Hovnanian Homes announced their plans for the redevelopment of the unincorporated 50 acres located
at 16802 W Aptakisic Road (Link Farm). The property is located directly north of the existing Didier Farms. K
Hovnanian Homes is still finalizing their proposed plans, which will include a mix of single-family attached and
detached homes. The project requires a public hearing, in addition to zoning and annexation agreement approvals
from the Buffalo Grove Village Board.
26
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Section 3
Budget Process and Structure
Budget Process
Budget Timeline
Budget Sections
Basis of Budgeting
Annual Budget vs. Financial Statements
Fund Structure
Financial Policy and Goals
Account Numbers
Current Village Funds
Budget Responsibility
Budget Process
This budget document is the result of the Village’s financial and operational planning process and serves as the
guide for implementing those plans. The process brings together input from elected officials, department
directors, departmental staff and the public in order to shape the Village’s goals and objectives.
Staff begins preparing the next year’s budget nearly a year prior to its adoption. The Finance Director projects
fund balances remaining at the end of the current fiscal year and develops a revenue projection for the following
year. Individual departments are responsible for assessing current conditions, programs and needs. Each
Department Director is provided a target as a parameter to work within while developing departmental budgets.
Committee of the Whole meetings are held throughout the year to discuss long-range financial planning and
provide updates on the Village’s current financial condition. Mid-year, the Finance Director presents an update of
the five year operating forecast and the Water Fund’s twenty year pro forma. Additionally, staff does a yearly
review of all rate schedules.
Once Department Directors have reviewed their programs and services, initial budget requests are submitted to
the Finance Director. The Finance Department then consolidates all requests to analyze the budget as a whole.
After an initial analysis, meetings are set up between the Department Directors, Finance Director, and Village
Manager. They review major operational changes, discuss objectives and review capital project requests. An
effort is made to combine requests across departments and to discuss how to more efficiently accomplish
departmental goals. Any unjustified items are eliminated from the budget at this time.
Over the next month, the Finance Department works to compile the budget document. In addition to developing
budget summaries for each department, which outline requests, the Finance Department reviews and updates
other sections of the document. Before the first public hearing, the proposed budget is made available to the
public, both in hardcopy format at Village Hall and electronic format on the Village’s website, www.vbg.org. While
the proposed budget must be available for public inspection at least ten days prior to passage, the Village routinely
has it available in advance of this deadline.
In November, a series of meetings are conducted covering the proposed budget and tax levy. The Village Manager,
Finance Director, and Department Directors are present to address any issues or concerns presented by the Village
President, Trustees and residents. After the public meetings, the budget may be further revised and passed
without further public inspection, notice or hearing. Once approved, the budget is the official spending document
for fiscal year 2017.
Once the budget has been approved, the Village Manager and Finance Director continue to monitor the Village’s
rate of revenue collections and expenditures to assure a healthy financial condition. If revenue projections drop
below staff’s original estimates, the Village Manager will direct staff to reduce expenditures. Any adjustments or
addendums to the budget must be passed by the Village Board in the form of a budget amendment.
29
Budget Timeline
Date Event Requirement/Action
Wednesday, June 29, 2016 Budget/CIP Instructions Distributed Finance staff distribution
Friday, July 08, 2016 FY 2017 Initialized in New World Systems Staff creates FY 2017 in NWS
Monday, July 11, 2016 Committee of the Whole Meeting
Presentation of five year General and
Water Fund Operating Proforma
discussion. Program Budget discussion.
Management comments (audit)
Friday, July 29, 2016
Capital Improvement Plan Project &
Building Maintenance Requests Due. IT
Project Requests Due
Department submits five year capital
requests and FY 2016 building remodeling
and technology requests
Monday, August 01, 2016 Committee of the Whole Meeting Staff provide six month financial update on
FY 2016 Budget. CIP Discussion
Thursday, August 11, 2016 Capital Budget Meetings Review capital requests.
Friday, August 12, 2016 Village Fee & Fines Recommendation Department fee & fine recommendations
due to the Office of Village Manager
Wednesday, August 17, 2016 Meeting on Capital Reserve Funding Staff reviews funding requirement for
vehicles, buildings and technology
Friday, August 19, 2016 Salary and Health Insurance Budgets Added
to Department Budgets
Staff adds wage and insurance line-items.
Census reports distributed for review.
Monday, August 22, 2016 Capital Reserve Amounts Distributed and
Added into NWS
Reserve amounts calculated for vehicles,
technology and buildings.
Monday, August 29, 2016 General Fund Revenue Estimate Staff compiles estimated actual for FY 2016
and budget for FY 2017
Wednesday, August 31, 2016 Preliminary Budgets added to New World
Systems. All department budgets entered into NWS.
Friday, September 02, 2016 RFP/RFQ/Bidding Calendar Department Directors report FY 2017
activity to Brett Robinson.
Friday, September 02, 2016 Final Budget Requests Due Final department budget due.
September 15-16, 2016 Department Meetings
Department Directors discuss budget
requests to Village Manager/Deputy
Manager.
September 16 - October 7, 2016 Budget Preparation FY 2016 Budget production
Monday, October 10, 2016 Preliminary Detail Budget to Village Board Preliminary detail budget emailed to
Village Board
Friday, October 27, 2016 Draft Budget to Village Board Draft budget distributed to Village Board
Monday, November 07, 2016 Village Board Meeting Truth-in-Taxation determination.
Monday, November 14, 2016 Village Board Meeting FY 2017 Budget Presentation
Monday, December 05, 2016 Village Board Meeting FY 2016 tax levy (public hearing). Budget
adopted by resolution.
30
Budget Sections
The Budget is divided into ten sections and four appendices:
1. Transmittal Letter: The Transmittal Letter provides the Village Board and the public with a general
summary of the most important aspects of the budget, including current and previous fiscal years, and the
views and recommendations of the Village Manager.
2. Organization and Services: This section includes a list of principal officials, an organizational chart, and
general background information. The Organization and Services section provides an overview of Buffalo
Grove as well as villagewide Economic Development goals.
3. Budget Process and Structure: This section provides the reader with general information on how the
budget was developed, including a timeline and its general format.
4. Executive Overview: In the Executive Overview section, the overall revenues and expenditures are
presented by fund, as are fund balance projections, debt levels, staffing levels, and budget assumptions.
Trend analysis allows the Village to monitor changes and anticipate future issues. This section identifies
the factors that affect financial condition and logically arranges them to facilitate analysis and
measurement. This information serves as a management tool by combining information from Village
documents with relevant economic data. Strategic goals are presented in this section as a function of the
overall revenue and expense profile, targeted priorities and performance measures.
5. General Fund Summary and Detail: This section provides more in-depth financial, organizational and
staffing information at the department level including budget variances, changes, and performance
measures.
6. Capital Improvement Budget Summary: This section presents the planned investments in the long-term
assets of the Village. The Capital Improvement Plan provides a listing of capital projects over a 5-year
horizon.
7. Enterprise Fund Summary and Detail: This section provides more in-depth financial, organizational and
staffing information at the enterprise fund level including strategic goals, accomplishments, budget
variances and performance measures.
8. Internal Service Funds: This section includes funds that finance and account for services and
commodities that are designated to other departments within the Village. The funds generate revenue
through the annually budgeted expenditures within the departments that utilize those services.
9. Fiduciary Funds: This section presents both of the Village’s fiduciary funds – Police and Firefighters
Pension Funds.
10. Other Funds: This section provides the budgets for the Illinois Municipal Retirement Fund, the Parking Lot
Fund and the Facilities Development Debt Service Fund.
11. Appendix A Comprehensive Fee and Tax Schedule: All fees and taxes for the Village of Buffalo Grove.
12. Appendix B Financial Policies and Projections: All codified financial management policies and projections
presented to the Village Board throughout the year.
13. Appendix C Human Resources: A summary of health insurance plan benefits and aggregate staffing levels.
14. Appendix D Document Definitions: Includes definitions of key terms and acronyms found throughout the
budget book.
31
Basis of Budgeting
The Village of Buffalo Grove accounts for all funds and adopts a budget based on generally accepted accounting
principles (GAAP). A fund is a separate accounting entity with a set of self-balancing accounts that records assets,
liabilities, fund equity, revenues, and expenses or expenditures. Funds are segregated for the purpose of carrying
on specific activities or attaining certain objectives in accordance with regulations, restrictions, or limitations.
The Village uses three fund types:
Governmental Funds: use the modified accrual basis of accounting whereby revenues are recognized when they
are “measurable and available” and expenditures are recorded when the related fund liability is incurred.
Governmental funds usually account for tax-supported activities.
Proprietary Funds: use the full accrual basis of accounting. Under the full accrual basis, revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred. Proprietary funds are used to account
for business-type activities.
Fiduciary Funds: are accounted for on a full accrual basis. Fiduciary funds are used to account for resources that
are held by the government as an agent for parties outside the government and cannot be used to support the
Village’s own programs.
Annual Budget vs. Financial Statements
With the exception of the treatment of depreciation, the budget basis is consistent with GAAP. Depreciation is not
shown in the budget, the full purchase price of capital expenditures is included. A reconciliation of the difference
is provided in the Village’s Comprehensive Annual Financial Report (CAFR). Funds that are not budgeted, but are
part of the Comprehensive Annual Financial Report, are the Retiree Health Savings Fund and the School and Park
District Donations Fund.
Fund Structure
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 of Buffalo Grove, like other governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All funds are included in this budget
document and are appropriated by the Village Board. All funds are prepared on a cash-basis for budgeting
purposes. During the Village’s annual audit, final adjustments may be made to properly account for modified or
full accrual accounting based upon the fund type.
Governmental funds focus on the near-term inflows and outflows of spendable resources. The majority of the
Village’s business is accounted for in Governmental Funds including the General Fund and the Special Revenue
Funds: Parking Lot Fund and Motor Fuel Tax Fund. Other governmental funds include the Debt Service Fund which
is established to pay the principal and interest due on long-term debt. Additionally there are two Capital Project
Funds: Capital Projects – Facilities Fund and Capital Projects – Streets Fund. These funds provide resources for the
design and construction of capital projects, as well as the procurement of long-term assets.
The Village maintains two types of proprietary funds – an enterprise fund and three internal service funds.
Enterprise funds are used to report the business-type activities the Village engages in and charge fees designed to
recover the cost of the provided services. The Buffalo Grove Golf Fund, Arboretum Golf Fund, Water & Sewer
Funds, and Refuse Fund are included in this grouping. Internal Service Funds finance and account for services and
commodities that are provided to all village departments, in turn all the revenue generated in these funds are
32
derived from the departments which they serve through their budget, and are then transferred to the Internal
Service Funds. The internal service funds are Information Technology, Central Garage, and Building and Facility
Maintenance. The Finance department works closely with the Office of the Village Manager and Public works to
develop these budgets and allocate charges for service to each department.
Lastly, the Village acts as the fiduciary for the Police and Fire Pension Funds. The funds are supported by employee
and Village contributions and are established as single-employer funds. The funds are managed by pension boards
and are not available to support the Village’s programs. Civilian personnel are covered by the Illinois Municipal
Retirement Fund (IMRF), a multi-employer, defined benefit plan. The Village sends the employer and employee
contributions directly to IMRF.
Financial Policies and Goals
The Village of Buffalo Grove has adopted various revenue, debt and reserve policies. These policies provide and
help maintain a favorable financial picture for the Village. The policies are located in their entirety in Appendix B.
Investment Policy: This policy provides guidelines for investing Village funds in financial instruments that provide
for the safety of principal, remain sufficiently liquid to meet anticipated operating requirements, and provide a
market rate of return.
Purchasing Policy: This policy delineates the procedure for purchasing goods and services in the Village.
Competitive bidding is required for purchases over $20,000, except for professional services.
Debt Policy: The Debt Policy governs how, when, and why debt is used. It is the policy of the Village to never use
debt to finance current operations.
Fund Balance Policy: This policy establishes the appropriate level of unassigned fund balance in the General Fund.
Fund balance reserves should only be used for capital improvements or as a temporary stop-gap to bridge a deficit.
Capitalization Policy: Capital assets are assets with an initial, individual cost of more than $10,000 and an
estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life
of an asset, or that significantly increase the capacity of an asset, are capitalized.
33
Budgetary Goals:
1. Prepare a budget, providing meaningful and readily understandable information to interested residents as
well as the Village Board and staff.
2. Prepare a budget that allows for the implementation of the Village Board’s goals and objectives.
3. Pay for capital assets using pay-as-you-go financing.
4. Encourage intergovernmental cooperation.
5. Present a balanced budget defined as a budget where revenues meet or exceed expenses.
Account Numbers
Account numbers identify the fund, type of account, department, division, general revenue and expenditure
category, and type of purchase. Account numbers appears as follows:
100 15 510 16
Fund Department Account Line Item
The first three digits (100) indicate the fund (see following chart for fund numbers).
The fourth and fifth digits (15) indicate the department.
XXX.10 – Legislative
XXX.15 – Office of the Village Manager
XXX.20 – Legal
XXX.30 – Finance
XXX.35 – Human Resources
XXX.40 – Fire
XXX.45 – Police
XXX.50 – Building & Zoning
XXX.55 – Public Works
XXX.60 – Engineering
XXX.70 – Transfer Non-Operating
XXX.75 – Capital Improvement
XXX.81 – Metra Parking
XXX.84 – Golf
XXX.85 – Debt
XXX.86 – Refuse
XXX.88 – Police Pension
XXX.89 – Fire Pension
The Public Works Department is further delineated into divisions.
XXX.55.10 – Streets
XXX.55.15 – Administration
XXX.55.20 – Forestry
XXX.55.25 – Drainage
XXX.55.35 – Water
XXX.55.36 – Sewer
The first digit in the third grouping of numbers (XXX.XX.5XX.XX) indicates whether this is an income or expenditure
account.
1XX – Asset
2XX – Liability
3
3XX – Fund Equity
4XX – Income
5XX – Expenditure/Expense
6XX – Capital Outlay
7XX – Debt Service
The next two digits in the third grouping of numbers (XXX.XX.X10.XX) indicates the general category to be charged.
500 - Personal Services
505 - Personal Benefits
510 - Operating Expenses
515 – Insurance
520 - Legal Services
525 - Commission & Committees
530 – Commodities
535 - Maintenance & Repairs – Facilities
540 - Maintenance & Repairs - Water & Sewer
545 - Maintenance & Repairs – Vehicles
550 - Maintenance & Repairs – Other
555 - Capital Equipment
560 - Capital Projects
565 - Debt Service
570 - Operating Transfers
580 - All Other Expense
The last two numbers in the string indicate the object within the Category. For example: 510.16- Printing
Revenue accounts are not associated with a department or division and appear as follows:
100 465 90
Fund Department Account
The revenue account categories are as follows:
400 - Taxes – Property
410 - Taxes - State Shared
415 - Taxes – Local
420 - Business Licenses
425 - Liquor Licenses
430 - Animal Licenses
435 - Building Revenue & Fees
440 - Intergovernmental Revenue – Local
441 - Sales of Water
442 - Village Sewer
443 - Lake County Sewer
444 - Insurance Contributions
445 - Golf Course Fees
450 - Investment Revenue
455 - Fines & Fees
460 - Operating Transfers
465 - All Other Revenue
470 - Bond Proceeds
471 - Income From Joint Venture
472 - Capital Contributions
35
Current Village Funds
Type Fund Name Fund
No. Description
General General 100
The Village’s chief operating fund. Accounts for all financial
resources except those required to be accounted for in another
fund.
Special Revenue
Parking Lot 120
Accounts for fees collected at the Village’s mass transit parking
station site and expenditures required to maintain the parking
lot.
Motor Fuel Tax 130
Accounts for the use of the Village’s share of state gasoline taxes.
State law requires the MFT to be used for the Village street
program.
Debt Service Facilities
Development 140 Accounts for the accumulation of resources for, and the payment
of, general long-term debt principal and interest.
Capital Projects
Facilities 150 Accounts for the acquisition or construction of major capital
facilities (other than those in Enterprise Funds).
Street
Maintenance 160
Accounts for the costs of design, construction, and construction
engineering for various street maintenance and construction
projects.
Enterprise
Waterworks &
Sewerage 170 Accounts for the provision of water and sewer services to
customers of the Village.
Arboretum Golf
Course 190 Accounts for the operations of a municipal golf course.
Buffalo Grove
Golf Course 180 Accounts for the operations of a municipal golf course.
Refuse Service 200 Accounts for the provision of refuse disposal services to
customers of the Village.
Internal Service
Information
Technology 211 Accounts for all hardware, software, and other information
technology resources for the Village departments.
Central Garage 212 Accounts for all services and commodities to maintain the Village
department vehicles.
Building &
Facility
Maintenance
213 Accounts for all services and commodities to maintain the Village
building and facilities utilized by all departments.
Fiduciary
Police Pension 220 Accounts for the accumulation of resources to be used for the
retirement annuity payments to sworn police officers.
Fire Pension 230 Accounts for the accumulation of resources to be used for the
retirement annuity payments to firefighters.
36
Budget Responsibility
The following departments are responsible for budgeting revenues and/or expenses in the listed funds.
Fund Name Fund No. Department / Budget Responsibility
General 100 Legislative
Office of Village Manager
Legal
Finance
Human Resources
Fire
Police
Building and Zoning
Engineering
Public Works - Streets
Public Works - Administration
Public Works - Forestry
Public Works - Drainage
Operating Transfers - Finance
Parking Lot 120 Finance
Motor Fuel Tax 130 Engineering
Debt Service 140 Finance
Capital Projects - Facilities 150 Public Works - Administration
Capital Projects - Streets 160 Engineering
Water and Sewer 170 Public Works - Water & Sewer
Arboretum Golf Course 190 Arboretum Golf Course
Buffalo Grove Golf Club 180 Buffalo Grove Golf Course
Refuse 200 Finance
Information Technology 211 Office of the Village Manager
Finance
Central Garage 212 Public Works - Central Garage
Finance
Building and Facility Maintenance 213 Public Works - Building Maintenance
Finance
Police Pension 220 Finance
Fire Pension 230 Finance
37
Section 4
Executive Overview
Budget in Brief
Strategic Planning
Revenue Trends and Projections Summary
Expenditure Trends and Projections Summary
Debt Position
Fund Balance Projections by Fund
Budget in Brief
The Village of Buffalo Grove embraces a fiscally-conservative and forward-looking approach to budgeting for the
operations of municipal government. This approach is coupled with the service-delivery expectations of the
Village’s core customers – residents and businesses – and its extended customers – visitors, regional entities and
other units of government. 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. The Village provides the following core services: administration,
finance, public works, police protection, fire prevention and suppression, civil engineering, building inspections,
urban planning-zoning, golf operations and community event support. Additional non-core services are provided
by others through regional partnerships or commissions, including the supply of potable water and dispatch
services, information technology and contract services including sanitary sewer treatment and refuse collection.
Various direct and indirect fees are collected for non-core services via the 911-surcharge, ad valorem tax levy and
user fees.
The budget document serves the following purposes:
1. To define the strategic goals and operating plan in accordance with Board direction and staff
recommendations for the orderly delivery of core and non-core services;
2. To designate financial resources necessary to achieve the strategic goals and to provide for adequate
operational and capital resources;
3. To communicate the Village’s financial plan for the fiscal year in a comprehensive and comprehensible
format; and
4. To articulate the methodology used by the Village to develop revenue and expense projections, provide
for long-term financial planning and maintain a stable and efficient municipal government.
For fiscal year 2017, the Village’s proposed budget is
balanced and does not contemplate the implementation
of new taxes. The property tax levy will increase by
approximately 2.6 percent for the 2016 levy, payable
2017. The proposed tax levy includes fully funded
requests for pension contributions, the appropriation of
funds to service existing debt obligations and sufficient
funds for the general operation of the Village. The
following table illustrates the history of total property
levies for the tax years 2014, 2015 and 2016 (proposed)
for the Cook and Lake County portions of the Village.
The basis for developing the overall budget relies upon
the initial forecast of anticipated revenues derived from taxes, fees, licenses, intergovernmental revenue, fines,
investment proceeds and interfund transfers. The following table depicts total revenues by category for all funds
for the years 2015, 2016 and 2017 (proposed).
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
2014 2015 2016
Total Gross Tax Levy
Cook County Lake County
3
Revenues by Category
The total revenue budget for 2017 is $79,600,891. This budget is a 1.6 percent decrease over the 2016 estimated
actual amount and 13.3 percent more than the 2015 actual. A significant increase ($9.35 million) in 2017 as
compared to the 2015 actual is due to the addition in 2016 of a Storm Water Management Fee, investment
revenues generated in the pension funds, and operating transfers for capital projects.
Account Category FY 2015 Actual FY 2016
Est. Actuals FY 2017 Budget
Property Taxes $14,742,623 $15,177,308 $15,674,776
Other Taxes-State $12,278,330 $11,933,392 $12,321,651
Other Taxes-Local $9,712,719 $9,922,500 $9,963,240
Business Licenses $204,751 $142,025 $142,025
Liquor Licenses $138,731 $137,650 $137,650
Animal Licenses $6,560 $6,465 $6,465
Building Revenue & Fees $1,142,738 $1,332,750 $981,200
Intergovernmental Revenue-Local $309,993 $294,346 $302,573
Sales of Water/Sewer Fees $10,235,625 $11,025,596 $11,377,743
Golf Course Fees $2,331,478 $2,348,283 $2,366,460
Investment Revenue $1,178,101 $7,148,506 $5,423,600
Fines & Fees $1,931,512 $1,890,015 $1,882,778
Operating/Internal Service Transfers $12,374,604 $11,455,748 $14,077,352
All Other Revenue $3,783,348 $8,055,744 $4,943,378
Grand Total - All Fund Revenue $70,245,763 $80,870,328 $79,600,891
The chart below summarizes total revenue by source including transfers. The other taxes classification
incorporates state shared taxes including: income, sales and motor fuel taxes, and local taxes including home rule
sales tax, real estate transfer tax, telecommunications tax, food and beverage tax, and utility use taxes. Charges for
service include revenue collected for construction permitting and inspection, water and sewer billing, and golf
course fees. The All Other Revenue category includes refuse fees collected on behalf of the Solid Waste Agency of
Northern Cook County, cable television franchise fees, storm water management fees, and pension contributions
made by sworn police officers and firefighters.
Summary of Revenues by Source - All Funds
Description General Parking
Lot
Motor
Fuel
Tax
Debt Service
Capital
Projects
Facilities
Capital
Projects
Streets
Water &
Sewer
Arboretum
Golf
Course
Property Tax $14,504,881 $1,169,895
Other Taxes $21,267,407 $1,000,000
Licensing $286,140
Charges for
Service $920,200 $11,438,743 $1,268,760
Investments $65,800 $7,800
Fines and Fees $1,672,778 $210,000
Operating/Int.
Service Trans. $901,000 $504,000 $1,875,303 $1,537,950 $196,468
All Other
Revenue $2,392,023 $1,200 $565,000
FY 2017 Budget $42,010,229 $211,200 $1,000,000 $1,673,895 $2,440,303 $1,537,950 $11,446,543 $1,465,228
FY 2016 Budget $41,714,743 $230,000 $1,000,000 $807,063 $1,428,356 $1,049,727 $13,834,475 $1,424,200
40
Revenues by Source – All Funds
Summary of Revenues by Source - All Funds continued
Description
Buffalo
Grove Golf
Course
Inform.
Tech.
Central
Garage
Building
Services
Refuse Police
Pension
Firefighters
Pension All Funds
Property Tax $15,674,776
Other Taxes $8,742 $8,742 $22,284,891
Licensing $286,140
Charges for
Service $1,097,700 $14,725,403
Investment $3,150,000 $2,200,000 $5,423,600
Fines and Fees $1,882,778
Operating/Int.
Service Trans. $103,185 $1,351,359 $1,756,782 $1,462,984 $2,525,647 $1,862,674 $14,077,352
All Other
Revenue $500 $1,045,000 $682,740 $559,488 $5,245,951
FY 2017 Budget $1,201,385 $1,351,359 $1,756,782 $1,462,984 $1,045,000 $6,367,129 $4,630,904 $79,600,891
FY 2016 Budget $1,248,569 $1,224,249 $1,791,878 $1,396,763 $1,040,000 $6,233,461 $4,629,699 $79,053,184
Property Tax,
19.7%
Other Taxes,
28.0%
Licensing, 0.4%
Charges for
Service, 18.5%
Investment, 6.8%
Fines and Fees, 2.4%
Operating/Int.
Service, 17.7%
All Other Revenue,
6.6%
41
Revenues by Source Summarized - All Funds
Summary by
Funds General Special
Revenue
Capital
Projects
Debt
Service Enterprise Internal
Service
Trust &
Agency Total
Property Tax $14,504,881 $1,169,895 $15,674,776
Other Taxes $21,267,407 $1,000,000 17,484 $22,284,891
Licensing $286,140 $286,140
Charges for
Service $920,200 $13,805,203 $14,725,403
Investment
Revenue $65,800 $7,800 $5,350,000 $5,423,600
Fines and Fees $1,672,778 $210,000 $1,882,778
Operating
Transfers $901,000 $3,413,253 $504,000 $300,153 $4,571,125 $4,388,321 $14,077,352
All Other
Revenue $2,392,023 $1,200 $565,000 $500 $2,287,228 $5,245,951
FY 2017 Budget $42,010,229 $1,211,200 $3,978,253 $1,673,895 $14,160,340 $4,571,125 $12,043,033 $79,600,891
FY 2016 Budget $41,714,743 $1,230,000 $2,478,083 $807,063 $16,507,244 $4,412,890 $11,903,160 $79,053,184
Total Revenue by Fund
Fund Fund # FY 2014
Actual
FY 2015
Actual
FY 2016
Budget
FY 2017
Budget
% of Prior Year
Budget
General 100 $37,494,997 $40,820,195 $41,714,743 $42,010,229 100.71%
Parking Lot 120 $176,100 $183,329 $230,000 $211,200 91.83%
Motor Fuel Tax 130 $1,817,252 $1,014,469 $1,000,000 $1,000,000 100.00%
Debt Service 140 $1,081,513 $808,057 $807,063 $1,673,895 207.41%
Capital Projects - Facilities 150 $2,163,404 $1,158,644 $1,428,356 $2,440,303 170.85%
Capital Projects – Streets 160 $113,000 $0 $1,049,727 $1,537,950 146.51%
Water & Sewer 170 $11,494,412 $10,968,724 $13,834,475 $11,446,543 82.74%
Buffalo Grove Golf Course 180 $1,202,100 $1,233,526 $1,248,569 $1,201,385 96.22%
Arboretum Golf Course 190 $1,158,400 $1,472,929 $1,424,200 $1,465,228 102.88%
Refuse Service 200 $1,020,000 $1,039,875 $1,040,000 $1,045,000 100.48%
Information Technology 211 $0 $957,961 $1,224,249 $1,351,359 110.38%
Central Garage 212 $0 $1,528,484 $1,791,878 $1,756,782 98.04%
Building Maintenance 213 $0 $1,392,642 $1,396,763 $1,462,984 104.74%
Police Pension 220 $4,439,846 $3,322,713 $6,223,461 $6,367,129 102.31%
Fire Pension 230 $4,404,677 $3,506,006 $4,629,699 $4,630,904 100.03%
Total $66,565,701 $70,266,762 $79,053,184 $79,600,891 100.69%
42
Expenditures by Category
The development of projected expenses relies upon the forecasting of categorical expenditures in the areas of
personnel salaries and benefits, professional and contractual services, commodities, health insurance and general
liability expenses, maintenance, capital construction and spending, chargebacks for technology, building and
garage services, and interfund transfers. As a service provider, over half of the Village’s total budget (52.9 percent)
is apportioned to Personnel Services and Benefits. Included within those categories are wages, health insurance,
training/education, and pension contributions. Thus, a great deal of effort is expended in managing collective
bargaining activities, wage and compensation programs and employee benefits as a core cost containment
strategy. The following table depicts total expenses by category for all funds for the years 2015, 2016 and 2017
(proposed).
Account Category FY 2015 Actual FY 2016 Est.
Actuals FY 2017 Budget
Personal Services $21,072,786 $21,672,403 $22,430,898
Personal Benefits $15,317,605 $16,795,904 $17,329,241
Operating Expenses $6,902,440 $7,314,549 $7,896,844
Insurance $877,296 $943,254 $1,025,670
Legal Services $360,208 $387,480 $484,850
Commission & Committees $93,091 $105,740 $112,700
Commodities $3,638,250 $4,352,332 $4,424,391
Maintenance & Repairs - Facilities $2,399,863 $2,680,636 $2,542,500
Maintenance & Repairs - Water & Sewer $53,847 $97,830 $104,900
Maintenance & Repairs - Other $38,846 $75,316 $87,675
Maintenance & Repairs - Vehicles $2,179,209 $2,152,313 $2,647,982
Capital Equipment $1,882,899 $1,423,769 $1,195,243
Capital Projects $5,681,044 $8,923,000 $6,747,923
Debt Service $832,875 $1,164,183 $2,095,280
Operating Transfer $3,062,951 $3,214,315 $4,043,956
All Other Expense $3,106,571 $2,016,062 $1,950,560
Grand Total All Fund Expense $67,499,781 $73,319,086 $75,120,613
The Village further analyzes and presents budgeted revenues and expenses by fund, including the general (main
operating), enterprise, fiduciary, internal service and capital funds. The net increase in spending from the 2015
actual versus the 2016 estimated actuals and 2017 budget is due to spending on capital projects (2016 Est. Actuals)
and debt service obligations and operating transfers for 2017.
43
Summary of Expenditures by Source - All Funds
The following chart provides a summary of expenditures by source. Approximately 53 percent of all expenditures
are allocated to personal services and benefits. Capital Projects and Equipment represent the next largest
percentage of the total Village budget at 10.6 percent. It is anticipated in the budget that $7.9 million in capital
projects and equipment purchases will be made. Significant projects include replacing the Combined Area Fire
Training Site (CAFT), the annual street maintenance program, Buffalo Grove Golf Course clubhouse improvements,
system improvements for water, sewer, and drainage utilities. The improvements include repairing sections of
water main and storm sewer main. Facility costs include roof replacements, new HVAC units, and parking lot
maintenance.
Within Operating Transfers there is a transfer to the General Fund of $765,000 paid by the Water and Sewer Fund
to reimburse for administrative, maintenance and operation expenditures accounted for outside of the Water and
Sewer Fund. A transfer of approximately $2.5 million from the General Fund to the Capital Project Funds will
support non-enterprise capital spending. The Internal Service Funds will be charging back $4.6 million to cover the
costs associated with providing technology, building maintenance and central garage functions.
The debt service obligations paid through the Debt Service Fund for principal and interest owed on General
Obligation Bonds series 2010A, 2010B, 2012, and 2016, and an installment contract, total $2,095,280 in 2017.
Summary of Expenditures by Source - All Funds
Description Personal Services
& Benefits
Operating
Expenses
Legal/Ins
Services Commodities Maintenance &
Repairs
General Fund $30,011,675 $2,824,073 $1,303,608 $363,590 $2,969,172
Parking Lot $155,271 $13,750 $17,500
Motor Fuel Tax Total Special Revenue Funds $155,271 $13,750 $17,500
Debt Service Fund
Capital Projects - Facilities
Capital Projects - Streets
Total Capital Projects Funds
Water & Sewer $1,546,912 $1,970,368 $110,739 $3,782,800 $714,681
Buffalo Grove Golf Course $426,560 $548,312 $15,361 $64,000 $109,040
Arboretum Golf Course $214,990 $863,872 $4,277 $53,000 $217,589
Refuse Service
Total Enterprise Funds $2,188,462 $3,382,552 $130,377 $3,899,800 $1,041,310
Information Technology $1,329,002 $17,357 $5,000
Central Garage $754,992 $21,852 $32,320 $5,000 $887,400
Building Maintenance $622,098 $184,094 $26,846 $142,251 $462,675
Total Internal Service $1,377,090 $1,534,948 $76,535 $147,251 $1,355,075
Police Pension $3,650,000
Fire Pension $2,532,912
Total Fiduciary Funds $6,182,912
All Funds $39,760,139 $7,896,844 $1,510,520 $4,424,391 $5,383,057
44
Budget by Fund Type
Summary of Expenditures by Source - All Funds continued
Description Capital Equipment
& Projects
Debt
Service
Operating
Transfers
All Other
Expenses Grand Total
General Fund $1,199,061 $2,524,956 $806,260 $42,002,395
Parking Lot $24,000 $500 $211,021
Motor Fuel Tax $1,500,000 $1,500,000
Total Special Revenue Funds $1,000,000 $24,000 $500 $1,211,021
Debt Service Fund $1,679,144 $1,679,144
Capital Projects - Facilities $1,974,723 $1,974,723
Capital Projects - Streets $350,000 $350,000
Total Capital Projects Funds $2,324,723 $2,324,723
Water & Sewer $2,173,044 $416,136 $945,000 $11,659,680
Buffalo Grove Golf Course $555,600 $500 $1,719,373
Arboretum Golf Course $110,500 $1,000 $1,465,228
Refuse Service $550,000 $760,000 $1,310,000
Total Enterprise Funds $2,839,144 $416,136 $1,495,000 $761,500 $16,154,281
Information Technology $1,351,359
Central Garage $55,218 $1,756,782
Building Maintenance $25,020 $1,462,984
Total Internal Service Funds $80,238 $4,571,125
Police Pension $295,000 $3,945,000
Fire Pension $200,000 $2,732,912
Total Fiduciary Funds $495,000 $6,677,912
All Funds $7,943,166 $2,095,280 $4,043,956 $2,063,260 $75,120,613
General Fund,
55.9%
Special Revenue
Funds, 2.3%
Capital Projects
Funds, 3.1%
Enterprise
Funds, 21.5%
Internal Service
Funds, 6.1%
Fiduciary Funds, 8.9% Debt Service Fund,
2.2%
45
Total Expenditures by Fund and by Category
The chart below provides expenditure summary for all fifteen Village funds and further divides those fund totals
into expenditures by category. The total budget for all Village expenditures in 2017 is $75,120,613. That total is 0.3
percent more than the 2016 budget and 11 percent more than actual expenditure in 2015. Over fifty-five percent
of all expenditures support the General Fund. The General Fund is the main operating fund of the Village and
accounts for critical core services such as police, fire, administration and public works.
By
F
u
n
d
Fund Fund
#
FY 2014
Actual
FY 2015 Actual FY 2016
Budget
FY 2017
Budget
% of Prior
Year
Budget
General 100 $39,043,476 $38,755,925 $41,670,875 $42,002,395 100.80%
Parking Lot 120 $219,535 $184,852 $193,654 $211,021 108.97%
Motor Fuel Tax 130 $2,014,666 $1,688,228 $1,000,000 $1,500,000 150.00%
Debt Service 140 $1,103,664 $806,748 $810,063 $1,679,144 207.29%
Capital Projects -
Facilities
150 $1,383,234 $2,746,734 $1,428,356 $1,974,144 138.21%
Capital Projects-
Streets
160 $1,149,921 $440,422 $1,049,727 $350,000 33.34%
Water & Sewer 170 $9,160,908 $9,366,915 $14,914,247 $11,659,680 78.18%
Buffalo Grove Golf
Course
180 $1,168,803 $1,351,796 $1,242,963 $1,719,385 138.33%
Arboretum Golf
Course
190 $1,631,832 $1,994,178 $1,414,886 $1,465,228 103.56%
Refuse Service 200 $803,039 $777,105 $1,026,740 $1,310,000 127.59%
Information
Technology
211 $0 $957,961 $1,224,249 $1,351,359 110.38%
Central Garage 212 $0 $1,528,484 $1,791,878 $1,756,782 98.04%
Building
Maintenance
213 $0 $1,393,658 $1,396,763 $1,462,984 104.74%
Police Pension 220 $3,005,470 $3,192,215 $3,612,716 $3,945,000 109.20%
Firefighter Pension 230 $2,133,142 $2,314,558 $2,131,491 $2,732,912 128.22%
Grand Total $63,463,812 $67,499,781 $74,908,609 $75,120,613 100.28%
Personal Services $37,864,098 $36,390,391 $38,488,295 $39,760,139 103.30%
By
C
a
t
e
g
o
r
y
Operating Expenses $4,245,353 $6,902,440 $7,637,789 $7,314,549 95.77%
Commodities $4,348,816 $3,638,250 $4,467,470 $4,424,391 99.04%
Maintenance & Repairs $2,148,901 $4,671,765 $5,473,725 $5,006,095 91.46%
Capital Equipment &
Projects
$8,309,142 $7,563,943 $10,759,000 $10,346,769 96.17%
Debt Service $1,114,256 $832,875 $1,164,246 $1,679,144 144.23%
Operating Transfers $2,356,486 $3,106,571 $3,312,022 $2,016,062 60.87%
All Other Expenses $4,615,159 $4,393,546 $3,606,062 $4,573,464 126.83%
Grand Total $63,455,487 $67,499,781 $74,908,609 $75,120,613 100.28%
46
47
Summary of Revenue and Expenditures by Category
Revenue Account Category FY 201ϱ Actual FY 201ϲ Est.
Actuals FY 201ϳ Budget
Property Taxes $14,554,564 $14,659,756 $15,177,288
Other Taxes-State $11,169,731 $11,954,000 $12,392,400
Other Taxes-Local $9,471,570 $9,637,238 $9,770,513
Business Licenses $65,122 $142,400 $142,400
Liquor Licenses $134,290 $135,400 $135,400
Animal Licenses $7,000 $7,010 $7,010
Building Revenue & Fees $998,521 $1,085,805 $766,000
Intergovernmental Revenue-Local $416,445 $319,920 $311,123
Sales of Water/Sewer Fees $9,032,463 $10,198,346 $10,765,475
Golf Course Fees $2,245,604 $2,304,825 $2,370,330
Investment Revenue $7,409,325 $4,888,950 $5,118,950
Fines & Fees $1,803,318 $1,823,325 $1,848,622
Operating/Internal Service Transfers $6,620,420 $11,697,093 $12,351,784
All Other Revenue $6,954,761 $8,980,847 $7,895,889
Grand Total - All Fund Revenue $70,883,134 $77,834,915 $79,053,184
Expenditure Account Category FY 201ϱ Actual FY 201ϲ Est.
Actuals FY 201ϳ Budget
Personal Services $21,099,903 $20,878,303 $21,700,218
Personal Benefits $15,181,673 $15,816,648 $16,788,076
Operating Expenses $4,245,353 $6,114,488 $7,637,789
Insurance $938,588 $1,031,135 $1,002,212
Legal Services $373,232 $325,500 $374,050
Commission & Committees $125,331 $104,600 $111,800
Commodities $4,348,816 $4,414,832 $4,467,470
Maintenance & Repairs - Facilities $1,158,519 $2,219,021 $2,611,744
Maintenance & Repairs - Water & Sewer $79,634 $74,300 $103,500
Maintenance & Repairs - Other $63,963 $72,158 $90,810
Maintenance & Repairs - Vehicles $839,040 $2,003,012 $2,667,671
Capital Equipment $2,284,119 $936,077 $1,424,417
Capital Projects $6,025,023 $11,380,913 $9,334,584
Debt Service $1,114,256 $827,246 $1,164,246
Operating Transfer $2,356,489 $4,026,418 $3,312,022
All Other Expense $3,221,548 $1,958,968 $2,118,000
Grand Total All Fund Expense $63,455,487 $72,183,639 $74,908,609
Personnel and Benefits
The Village of Buffalo Grove relies upon a lean and efficient professional staff to accomplish the mission, vision and
strategic goals of the operation. The Village has historically maintained a highly-competitive total workforce
compared to other municipalities in the region. The Village’s ratio of employees per 1,000 residents has declined
substantially in recent years as a result of the economic downturn and rightsizing of staff.
Over the past few years, the Village has implemented several programs to contain the costs of personnel and
benefits:
1. Implementing alternate service delivery models.
2. Reevaluating employee salary ranges every 3 years and placing limits on compensation increases
for employees at the top of their salary ranges.
3. Implementing a comprehensive wellness program with a goal to contain healthcare costs.
4. Gradually increasing the employee contribution to health insurance from 10 percent to 15 percent
over a five-year period (15% for 2017).
The net effect of the Village’s personnel cost containment strategy has significantly reduced the pressure on
overall operating costs which resulted in a decrease of total wages by .1% from 2016.
For 2017, the Village proposes a full-time staff complement of 212 full-time personnel and 58 part-time personnel.
FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Office of Village Manager/Administration 6 0 3 0 3 1
Community Development 10 1 12 1 12 1
Finance & General Service 8 0 9 0 9 0
Fire Services 59 2 59 2 59 2
Golf Operations 7 51 3 32 3 32
Human Resources 2 0 2 0 2 0
Information Technology 0 0 0 0 0 0
Police Services 74 14 75 13 75 12
Public Works/Engineering 50 10 49 10 49 10
Total 216 78 212 58
212 58
Full & Part-Time Grand Total 294 270 270
2016 & 2017 Strategic Planning & Initiatives
Introduction
In 2012, the Village of Buffalo Grove embarked on the development of a new
Strategic Plan. As part of the project, the Village contracted with the NIU
Center for Governmental Studies to assist in the facilitation of the process.
The majority of the plan coordination and development was done internally
by Village staff.
The Village selected a cross section of employees to serve on an Integrated
Management Team to participate in the strategic planning process. Two
elected officials also participated in this initiative and were involved with
strategy development.
The Village of Buffalo Grove’s strategic planning process resulted in the development of a Strategic Plan that
involved the following:
1. Assessment of organizational strengths, weaknesses, opportunities and threats;
2. Development of strategic planning priorities and key performance indicators;
3. Identification of strategic initiatives and actions to achieve the strategic priorities:
4. A framework for a performance measurement system for use both internally and as a balanced scorecard
for public outreach; and
5. Establishment of a framework of financial strategies that support the Strategic Plan.
The planning process allowed the management team to clarify the Village’s Vision, Core Values, and Mission.
Likewise, five strategic planning priorities were identified through the work of the Village Board. These priorities
include Economic Development, Infrastructure Sustainability, Organizational Culture, Revenue Growth, and Service
Optimization.
Strategic Initiatives are new activities or programs that directly address the organization’s Strategic Priorities and
achievement of the outcomes. While the Village may have current programs or activities that support the
achievement of the Strategic Priorities, Strategic Initiatives are critical activities that will be required to realize fully
the organization’s vision. Specific departmental actions will be identified for each Strategic Initiative through the
formulation of annual action steps and will be communicated to representative employee groups through the
designated department project manager on a regular basis.
Vision and Mission Statements
Vision
The Village’s Management Theme is “Achieving Excellence.”
Mission
Excellence in Service Delivery: Continuously evaluate programs and service to ensure they are carried out
efficiently and effectively.
Excellent Community Focus: Promote programs and services which focus upon enhancements to family values,
social amenities and enhanced opportunities that contribute to business expansion and success.
Excellent Organizational Dynamics: Ensure that the organization remains accountable as it addresses change and
transition. We shall remain committed to competent, dependable and efficient service delivery by all of our staff.
Excellent Fiscal Responsibility: Deliver value with the public services in a responsive manner within the
parameters of adopted tax and fiscal responsibilities. Furthermore, we remain committed to managing and
maintaining the public infrastructure and assets with proactive services.
Core Values
The core values of the Village of Buffalo Grove are centered on a matrix of one-word descriptors. These words
represent the values we hold; and which form the foundation on which we perform work and conduct ourselves.
Strategy: Ongoing operations and future services are defined in terms of short, intermediate, and long-term
strategies that reflect the high-level service requirements, expectations, and demographics of the community. Our
core strategy focuses on fiscally-prudent, high-quality and differentiated services to residents.
Efficiency: The Village strives to deliver products and services in the most cost effective manner, seeking to
minimize time and resources obligated to core services and to lower the cost of service delivery through
competition, collaboration, and innovation.
Culture: The Village maintains a culture of service, loyalty, and dedication to our competencies through adherence
to a series of Goal Timelines and accountability.
Technology: The Villages’ priority is to launch technology as a means to provide better and more efficient services
to our internal and external customers. We evaluate and implement the newest technology as an ongoing effort
to improve efficiency and enhance communications
Strategic Priorities
Five strategic priorities drive how resources are expended within the Village of Buffalo Grove. These priorities
provide a framework for decision making. While the Vision and Mission statements are the “how” of what we do –
the strategic priorities are the “what.”
Definition: Based on needs and expectations of the community and prioritization of
core services, provide optimal service by supporting an adaptive and efficient work
force.
Categories: Core Services, Organizational Needs, Marketing, and Communication.
Definition: Create and maintain an environment that engages and empowers all
employees in the mission of the Village and encourages the development of human
capital and resources.
Categories: Leadership and Support, Technology and Collaboration, Personal Growth,
and Balance.
Definition: Maintain a positive financial position with a long term perspective by
diversifying revenue sources, aligning fee structures to adequately reflect service
demands, reducing the Village’s reliance on property and state shared taxes, and
ensuring revenues adequately fund services and infrastructure needs.
Categories: Diversification, Reserves, and Cost Control.
Definition: Maintain and enhance the quality of life in the community through on-
going assessment, public and private partnerships, and by leveraging resources to
meet community objectives. Create an inviting environment for doing business in the
community through targeted communication and marketing methods, consistent
with the needs and values of the village.
Categories: Active Development and Redevelopment, Opportunity Management,
Events, and Quality of Life Initiatives
Definition: Assess and maintain reliable high quality infrastructure which includes
Village buildings, streets, utilities (including water, sanitary sewer and drainage
systems), information assets, vehicle fleet, and other assets necessary for maintaining
service levels. Plan for the financial resources necessary to maintain current
infrastructure, upgrade for efficiency or enhanced capabilities, and plan for the future
infrastructure needs of the community.
Categories: Planning and Programming, Financial, and Green Infrastructure
PROGRESS TOWARDS 2016 GOALS
Strategic Planning Priority: Service Optimization
Based on needs and expectations of the community and prioritization of core services,
provide optimal service by supporting an adaptive and efficient work force.
Strategic Initiative: External Service Tier
Action Steps Status Project Manager(s)
Investigate the opportunity to deploy mobile
tablets in the field for Public Works.
Completed. Mobile tablets are
live in the field. Public Works Director
A catalog of services for each department
will be developed and presented to the
Village Board that identifies the Village’s
current service levels.
A sample of catalog services items
was presented to the Village
Board. The remaining items will
be completed in 2017.
Deputy Village Manager
Implement online police reporting for minor
incidents. Completed. Police Chief
Implement a new point of sale system for
BGCC and Arboretum.
Software analysis is complete and
the new system will go live early
2017.
Head Golf Professional
Evaluate the cost versus reward of GPS units
in golf carts. Completed. Head Golf Professional
Review all Village forms/applications and
develop a plan to transition them to the
website in an online format.
Goal has changed due to a review
of the website. This goal will
move into 2017.
Deputy Village Manager
Complete Cartegraph Implementation. Completed. Public Works Director
Migrate food and beverage tax payments
online.
Analysis was completed. Current
software does not allow for this
capability. Working with software
provider to allow for this in the
future.
Finance Director
Implement a revised vehicle utilization plan
in the Fire Department. Completed. Fire Chief
Analyze Police Department daily activity
reports and create a strategy for best use of
officer time. Use reports to create Goal
Timelines.
Goal moved to 2017. Police Chief
Strategic Initiative: Marketing and Communication
Action Steps Status Project Manager(s)
Analyze the success of social media
communications and revised the
communications strategy as needed.
Completed. Deputy Village Manager
Develop a style guide and brand standard
for all Village publications and
communication pieces.
Goal has changed due to the
branding strategy for the Lake
Cook Road Corridor Project.
Deputy Village Manager
Evaluate the cycle of the Village News and
develop a revised strategy for Village
Board approval.
Completed. Deputy Village Manager
Strategic Initiative: Organizational Needs
Action Steps Status Project Manager(s)
Update mutual aid agreements with all
communities surrounding the Village. Goal moved to 2017. Fire Chief
Evaluate the efficiency of moving all
inspectors into the Community
Development Department.
Goal moved to 2017. Community Development
Director
Evaluate Village Hall front counter needs
in light of the customer service counter
merger.
Completed. CD Director/Finance Director
Evaluate the opportunity to aggregate
water billing with Palatine and Wheeling.
Initial evaluation complete. Final
analysis to be completed in 2017. Finance Director
Strategic Planning Priority: Organizational Culture
Create and maintain an environment that engages and empowers all employees in the
mission of the Village and encourages the development of human capital and resources.
Strategic Initiative: Technology Collaboration
Action Steps Status Project Manager(s)
Retire Lotus Notes.
The IT Committee investigated various
options for finding new places to manage
data that remains in Lotus Notes. Staff is
recommending the purchase of SharePoint
to accommodate this need in 2017.
Deputy Village Manager
Implement employee event change
form in NWS. Completed. Human Resources
Director
Implement electronic employee benefit
enrollment.
Project was delayed due to an issue with
the vendor through the benefits
cooperative. A new vendor has been
chosen and it is likely the electronic
benefit enrollment will be available in
2017.
Human Resources
Director
Strategic Initiative: Personal Growth & Balance
Action Steps Status Project Manager(s)
Launch the BG Training Academy that
includes a supervisory track.
This project was selected as a capstone
project by UIC for their masters level
students. The students are working on
the project now and will have a report to
the Village in December of 2016.
Human Resources
Director
Develop an employee intranet with one
location to host all support
documentation for employees.
Completed. Human Resources
Director
Strategic Initiative: Leadership and Support
Action Steps Status Project Manager(s)
Review pay ranges in 2016 based on the
Village’s comparables with a January 1,
2017 implementation date.
Completed. Human Resources Director
Strategic Planning Priority: Revenue Growth
Maintain a positive financial position with a long-term perspective by diversifying revenue
sources, aligning fee structures to adequately reflect service demands, reducing the
Village’s reliance on property and state shared taxes, and ensuring revenues adequately
fund services and infrastructure needs.
Strategic Initiative: Diversification
Action Steps Status Project Manager(s)
Implement quarterly parking pass for
Metra parking lot.
Online payment for passes was
implemented in 2016. A quarterly/annual
option will be evaluated in 2017.
Finance Director
Strategic Initiative: Reserves
Action Steps Status Project Manager(s)
Evaluate the current EMA structure
and assets and make appropriate
recommendation.
Completed. Fire Chief
Complete a rate comparison analysis
for both golf courses and set a policy
for where each course should be
positioned in the market.
Analysis is complete. Recommendation
will go to the Village Board in early 2017. Head Golf Professional
Strategic Planning Priority: Economic Development
Maintain and enhance the quality of life in the community through ongoing assessment,
public and private partnerships, and by leveraging resources to meet community
objectives. Create an inviting environment for doing business in the community through
targeted communication and marketing methods, consistent with the needs of the
community.
Strategic Initiative: Active Development and Redevelopment
Action Steps Status Project Manager(s)
Develop a complete and revised
annexation strategy.
In process. A draft of the annexation
strategy was presented to the Village
Board on 10/14/2016.
Community
Development Director
Complete and implement corridor
planning and market analysis for
Prairie View and Lake Cook Road
corridors.
Prairie View study was changed to be a
part of a future Comprehensive Plan
update. A firm has been hired for the
Lake Cook Road Corridor and a plan for
the corridor is expected to be adopted by
the Village Board in October of 2017.
Community
Development Director
Strategic Initiative: Opportunity Management
Action Steps Status Project Manager(s)
Develop and distribute a series of
development brochures to the
business community and prospective
developers.
This will be completed in 2017 as the Lake
Cook Road Corridor consultant will be
developing marketing and branding
materials for the Corridor.
Community
Development Director
Complete the 2015 ICC Code Update. Draft complete. Final form will be
presented to the Village Board in 2017.
Community
Development Director
Strategic Planning Priority: Infrastructure Sustainability
Assess and maintain reliable and high quality infrastructure which includes Village buildings,
streets, utilities (including water, sanitary sewer and drainage systems), information
assets, vehicle fleet, and other assets necessary for maintaining service levels. Plan the
financial resources necessary to maintain current infrastructure, upgrade for efficiency or
enhanced capabilities, and plan for the future infrastructure needs of the community.
Strategic Initiative: Planning & Programming
Action Steps Status Project Manager(s)
Evaluate costs and benefits of a green
fleet program.
Project ongoing and will be complete in
2017. Public Works Director
Review the Village’s Bike System and
Bike Plan to identify priority
connections and develop a plan to
make connections.
Project ongoing and will be complete in
2017.
CD Director & PW
Director
Develop a plan for BGGC club house
improvements. Complete. Head Golf Professional
2017 STRATEGIC PLAN GOALS
In 2017, the Village will undertake a comprehensive review of the strategic plan to evaluate success and
create goals for the future. In 2016, the Village Board worked with a consultant and Staff to identify the
Village Board’s top priorities. Those priorities will be the starting point to a full review of the plan.
Some of the priorities identified are related to the goals set for 2017.
Strategic Planning Priority: Service Optimization
Based on needs and expectations of the community and prioritization of core services,
provide optimal service by supporting an adaptive and efficient work force.
Strategic Initiative: External Service Tier
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Evaluate snow plow routes for
efficiency and optimization.
100 Staff Hours
$4,968 August 31, 2017 Public Works Director
Develop a cost estimate to
enhance the tree trimming
cycle to 4 years and present to
the Village Board.
80 Staff Hours
$3,974 April 30, 2017 Public Works Director
A catalog of services for each
department will be developed
and presented to the Village
Board that identifies the
Village’s current service levels
and associated costs.
400 Staff Hours
$19,872 December 31, 2017 Deputy Village Manager
Work with the food and
beverage operator at both golf
courses to set a marketing and
targeted food plan for
customers.
200 Staff Hours
$9,936 March 30, 2017 Deputy Village Manager
Evaluate and improve
Community Development forms
and processes related to
development, permitting, and
inspections.
300 Staff Hours
$14,904
May 31, 2017 Community
Development Director
Increase social services
outreach due to the increase in
calls related to mental illness.
700 Staff Hours
$34,776
$44,000- Program Costs
March 30, 2017 Police Chief
Implement quarterly/annual
parking pass for the Metra
Parking Lot.
40 Hours
$1,987 June 30, 2017 Finance Director
Strategic Initiative: Marketing and Communication
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Expand current Everbridge
program for enhanced
communications with residents
and businesses.
80 Staff Hours
$3,974 May 31, 2017 Fire Chief
Complete citizen survey of all
residents in 2017.
200 Staff Hours
$9,936
$20,000- Program Costs
December 31, 2017 Deputy Village Manager
Develop style and brand
standards for all Village
publications and
communication pieces.
300 Staff Hours
$14,904 December 31, 2017 Deputy Village Manager
Review and improve the
Village’s website
300 Staff Hours
$14,904 September 30, 2017 Deputy Village Manager
Evaluate the success of the BG
Connect application and market
as needed.
80 Staff Hours
$3,974 December 31, 2017 Deputy Village Manager
Complete a building permit
customer service survey.
100 Staff Hours
$4,968 May 31, 2017 Community
Development Director
Create and implement a plan to
increase community outreach in
the Police Department.
1,000 Staff Hours
$49,680
June 30, 2017 plan
completion
December 31, 2017
plan operational
Police Chief
Implement a business electronic
newsletter.
80 Staff Hours
$3,974 June 30, 2017 Community
Development Director
E
Strategic Initiative: Organizational Needs
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Implement company level fire
inspections.
40 Staff Hours
$1,987 April 30, 2017 Fire Chief
Update mutual aid
agreements with other fire
departments and districts.
100 Staff Hours
$4,968 August 31, 2017 Fire Chief
Review Fire Department
policies and procedures in
anticipation of an ISO review.
200 Staff Hours
$9,936 December 31, 2017 Fire Chief
Evaluate and create a plan for
technology in Fire vehicles to
improve operations.
100 Staff Hours
$4,968 December 31, 2017 Fire Chief
Evaluate the staffing structure
for the golf operation.
80 Staff Hours
$3,974 February 28, 2017 Deputy Village Manager
Analyze Police Department
daily activity reports and
create a strategy for best use
of officer time.
100 Staff Hours
$4,968 March 30, 2017 Police Chief
Evaluate the efficiency of
moving all inspectors to the
Community Development
Department.
60 Staff Hours
$2,981 December 31, 2017 Community
Development Director
Implement new credit
card/online processor to
simplify back end processing.
40 Staff Hours
$1,987
July 31, 2017 Finance Director
Prepare for the
implementation of a new
police records management
system as part of the CAD
system upgrade.
100 Staff Hours
$4,968 December 31, 2017 Police Chief
Implement electronic
ticketing in the Police
Department.
80 Staff Hours
$3,974$10,000 -Program Costs December 31, 2017 Police Chief
Create a strategy to reduce
the number of false alarm
calls to the Police Department.
80 Staff Hours
$3,974 September 30, 2017 Police Chief
Strategic Planning Priority: Organizational Culture
Create and maintain an environment that engages and empowers all employees in the
mission of the Village and encourages the development of human capital and resources.
Strategic Initiative: Technology Collaboration
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Retire Lotus Notes.
800 Staff Hours
$39,744
$35,000-Program Costs
December 31, 2017 Deputy Village Manager
Strategic Initiative: Personal Growth & Balance
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Standardize and improve the
employee onboarding program.
80 Staff Hours
$3,974 June 30, 2017 HR Director
Review and update the
Personnel Manual.
150 Staff Hours
$7,452
$10,000-Legal Review Costs
September 30, 2017 HR Director
Strategic Initiative: Leadership and Support
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Implement employee benefit
statements.
80 Staff Hours
$3,974 January 30, 2017 HR Director
Review employee benefit
options for potential changes.
100 Staff Hours
$4,968 June 30, 2017 HR Director
Strategic Planning Priority: Revenue Growth
Maintain a positive financial position with a long-term perspective by diversifying revenue
sources, aligning fee structures to adequately reflect service demands, reducing the
Village’s reliance on property and state shared taxes, and ensuring revenues adequately
fund services and infrastructure needs.
Strategic Initiative: Diversification
Action Steps Budgetary Considerations Goal Timelines Project Manager(s)
Evaluate water service
connection fees for anticipated
annexations.
100 Staff Hours
$4,968 September 30, 2017 Public Works Director
Evaluate opportunities to pool
liability insurance and the
financial impacts of self-
insurance.
40 Staff Hours
$1,987 August 31, 2017 Human Resources
Director
Evaluate opportunities to sell
or share services with other
communities.
80 Staff Hours
$3,974 June 30, 2017 Deputy Village Manager
Evaluate opportunity to
expand the current business
licensing program.
40 Staff Hours
$1,987 June 30, 2017 Deputy Village Manager
Strategic Initiative: Cost Control
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Evaluate the budget for
establishment of additional
internal service funds.
60 Staff Hours
$2,981 June 30, 2017 Finance Director
Establish a program based
budget for FY 2018.
500 Staff Hours
$24,840 December 31, 2017 Finance Director
Strategic Planning Priority: Economic Development
Maintain and enhance the quality of life in the community through ongoing assessment,
public and private partnerships, and by leveraging resources to meet community
objectives. Create an inviting environment for doing business in the community through
targeted communication and marketing methods, consistent with the needs of the
community.
Strategic Initiative: Active Development and Redevelopment
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Complete Lake Cook Road
Corridor Study.
500 Staff Hours
$24,840
$100,000- Consultant Costs
October 31, 2017 Community
Development Director
Develop a work plan for a
Village-wide Comprehensive
Plan update with focus on the
Milwaukee Avenue and Prairie
View areas.
100 Staff Hours
$4,968 December 31, 2017 Community
Development Director
Present to the Village Board
example projects that
demonstrate how a variety of
economic development tools
that can be used to assist with
successful projects.
80 Staff Hours
$3,974
June 30, 2017 Community
Development Director
Strategic Initiative: Opportunity Management
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Create a formal procedure for
development improvement
agreements to streamline the
process for staff and
developers.
100 Staff Hours
$4,968
July 31, 2017 Public Works Director
Develop and distribute a series
of development brochures to
the business community and
prospective developers.
40 Staff Hours
$1,987
$2,000- Program Costs
December 31, 2017 Community
Development Director
Enhance the Village’s website
with information pertinent to
those interested in developing
in Buffalo Grove.
40 Staff Hours
$1,987
September 30, 2017 Community
Development Director
Work with Lake County
Partners and other
municipalities on the
development of a county-wide
Economic Development
Revolving Loan Fund that
would provide loans to help
businesses grow, create jobs,
and grow the local tax base.
80 Staff Hours
$3,974
September 30, 2017 Community
Development Director
Strategic Planning Priority: Infrastructure Sustainability
Assess and maintain reliable and high quality infrastructure which includes Village buildings,
streets, utilities (including water, sanitary sewer and drainage systems), information
assets, vehicle fleet, and other assets necessary for maintaining service levels. Plan the
financial resources necessary to maintain current infrastructure, upgrade for efficiency or
enhanced capabilities, and plan for the future infrastructure needs of the community.
Strategic Initiative: Planning & Programming
Action Steps Budgetary Considerations Goal Timeline Project Manager(s)
Evaluate the costs and benefits
of a green fleet program.
40 Staff Hours
$1,987 March 30, 2017 Public Works Director
Develop a fiscally constrained
plan for the irrigation systems
at both golf courses.
40 Staff Hours
$1,987 March 30, 2017 Deputy Village Manager
Evaluate the Village’s facilities
and develop a long term
strategy for space needs and
location of facilities.
100 Staff Hours
$4,968 December 31, 2017 Finance Director
Total funds committed to the implementation of Strategic Planning Priorities for 2107 are $611,111.
Revenue Trends and Projections
As a part of the development of both long-term financial forecasting and the corresponding annual budget, the
Village continually reviews external and internal functions that impact, or may impact, the collection of revenue.
Evaluating the impact of the national economy (macro) on the local economy (micro) is an important step in the
process.
The national economy affects both state and local economies, although this impact varies by jurisdiction and may
actually have an inverse effect on a community. The state economy has played a significant role in the discussion
of the budget. Several critical revenues that the state shares with the Village have been the subject of legislative
debate. Those revenues are threatened to be cut to help balance the state budget. At the time the budget was
developed nothing had materialized that would impact funding to the Village.
Some of the economic indicators the Village uses in financial analysis include: inflation, employment, housing
starts, vehicle sales, interest rates, and manufacturing activity.
Inflation – As inflation goes up, the cost of goods sold go up, increasing retail sales tax revenue. As prices rise, so
will business income tax receipts. Conversely, the Village will have to pay more for goods and services.
Employment – Retail and vehicle sales tend to have inverse relationships with the unemployment rate. Sales tend
to move in the opposite direction of the unemployment rate. Chronic unemployment often spills over into the
residential real estate market resulting in lost real estate transfer tax revenue.
Housing starts - This indicator provides a sense of the overall demand for housing, which can be indicative of local
housing activity. Data maintained by local realtor groups is useful in projecting the future of market recoveries.
Vehicle sales – Sales and use tax revenues tend to fall with vehicle sales, which are heavily dependent upon both
employment and interest rates. However, if increases in new vehicles are expected to reduce the value of used
vehicles, the sales and use tax base can actually decline if the depreciation of used vehicles is not equally offset by
the value of new vehicles.
Interest rates – Interest rates impact the Village’s revenues in several ways. First, investment income will be
affected by interest rates. Second, the availability and cost of capital directly affects business expansion and retail
purchases. As credit is extended and/or rates are lowered, revolving purchases may increase, thereby increasing
development plans and retail sales and, by extension, sales tax and business licenses revenues.
Manufacturing activity – If a Village has a large manufacturing sector, the ISM (Institute of Supply Management
Index) becomes a significant factor in revenue analysis and forecasting. Manufacturers respond to the demand for
their products by increasing production, building up inventories to meet the demand. The increased production
often requires new workers which lowers unemployment figures and can stimulate the local economy.
Property Tax
Property taxes (net of Road and Bridge taxes) are anticipated to be approximately $15.6 million and will be levied
in 2017. This is referred to as the 2016 property tax levy, payable in 2017. Property taxes account for about twenty
percent of all budgeted revenues. The total levy is anticipated to increase by 2.6 percent over the property taxes
extended in 2016.
There are three components to the property tax levy, the Corporate Tax Levy, the Pension and Special Purpose
Levies, and the Debt Service Levy. The Corporate Tax Levy helps to support the public safety departments including
police and fire. The Village is recommending a 2 percent increase to support these operations.
Property tax levies for Police and Fire pensions are based on an independent actuarial analysis of both funds’
normal costs as well as to provide an amount necessary to amortize a portion of the unfunded actuarial liability.
The levies both exceed the minimum requirements as contemplated under the Illinois Pension Code as that code
applies to police and fire sworn employee plans. The amount required for the Illinois Municipal Retirement Fund
(IMRF) is provided directly to the Village by the Illinois Municipal Retirement Fund. The amounts levied for FICA
and Medicare are dictated by the Internal Revenue Service. Over half of the tax levy request supports public safety
departments as noted in the chart below.
Distribution of Property Tax Dollars
The final component of the tax levy is for debt service obligations. Revenues collected through this levy are used to
pay principal and interest on the Village’s outstanding general obligation bonds. Principal and interest on General
Obligation Bonds due in 2017 is $1,669,894. $650,000 of the tax levy for debt service will be abated to reduce the
growth in the overall levy extension.
The Village of Buffalo Grove levies property taxes within two counties, Cook and Lake. The Illinois Department of
Revenue is tasked with the responsibility of assigning a tax burden to each county. For the 2016 property tax
levy, seventy-seven percent of all assessed valuation is located in Lake County and twenty-three percent is located
in Cook County. The following chart shows the growth of all real property in the Village over the last ten years.
Corporate Levy -
Public Safety
55%
Pension Levies
38%
Debt Service Levy
7%
Market values have stabilized and are seeing signs of positive growth after a four year decline during the recession.
Total Equalized Assessed Value (EAV) for the 2016 tax levy is $1.48 billion.
The rate at which property taxes are levied is determined by dividing the amount requested by the EAV. The EAV is
defined as one-third of the market value of all real property in the Village of Buffalo Grove. The Village levies the
dollars needed to fund operations, provide the statutory requirement for pensions and meet its debt
requirements. The rate is the fulcrum between the dollars requested and the value of all real property. In a
declining market value environment the tax rate will increase even if the tax levy dollar amount remains constant.
If all property values change uniformly across all classes of property, and the levied dollars do not change, there
will be no impact to a property owner’s tax bill. In reality, property values do not change in this manner. The five
year average decline in assessed value in both Cook and Lake Counties are (-6.3%) and (-2.5%) respectively.
State Shared Sales Tax
The Village receives one cent ($0.01) for each dollar of retail sales. The largest single sales tax generators are
grocery stores and restaurants whose sales are not as heavily influenced by economic conditions. Other significant
tax generators are businesses selling building and electrical supplies.
Sales taxes were up 1.2 percent during the current year due to stronger home sales (lumber credit processing
center in the Village) and industrial sales. The proposed budget does not reflect any new sales tax generating
business opening in the Village during the fiscal year.
The FY 2016 budget anticipated $5.7 million in sales tax revenue. The estimated actual will meet the budget target.
For 2017, the budget is anticipated to be $5.8 million or a 1.8 percent increase.
The following chart shows the last ten years of State Sales Tax revenue.
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
2,000,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Equalized Assessed Valuation
Cook County Total EAV Lake Couty
Home Rule Sales Tax
In 1992, the Village assessed a one-half cent ($.05) local option sales tax against all retail sales except food and
drug items and personal property titled with the State of Illinois. Performance of this revenue tends to follow
performance of the above referenced state sales tax, except for those excluded retail classes. The Village Board
voted in 2004, effective for January 1, 2005, to increase the home rule sales tax to one percent (1%). In 2017,
revenues are anticipated to increase by 2.64 percent from the 2016 estimated actual amount of $3.8 million to
$3.9 million. Growth in Home Rule Sales Tax is driven by inflationary growth.
The following is a ten year review of home rule sales tax collections.
The following chart is a distribution of sales taxes obtained from the Illinois Department of Revenue based upon
standard industrial classification (SIC) code reporting. The data encompasses the 2015 calendar year. The largest
single sales class is Drug and Miscellaneous Retail at 28.55 percent.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017
budget
State Sales Tax History
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017
budget
Home Rule Sales Tax History
69
Distribution of Sales Tax by SIC Code Reporting
Prepared Food & Beverage Tax
The Village receives one cent ($0.01) for each dollar of prepared food and beverage sales. This tax is levied on the
purchase of prepared food for immediate consumption and the sale of liquor either for consumption on premises
or packaged. Similar to sales tax, inflationary growth is the central driver of revenue increases for the next year.
There are a combined 110 food establishments and liquor stores that generate this tax. This revenue has had
consistent growth as a large percentage of the dining options within the Village are value oriented. The estimated
revenue for 2016 is 1.24 percent above the budget target. The budget for 2017 is $700,000. The tax was enacted in
2008.
Illinois Income & Use Tax
Illinois Income Tax is imposed on every individual, corporation, trust and estate earning or receiving income in the
state. The tax rate is levied at 3.75 percent of income for individuals and 5.25 percent for corporations. The Village
receives a pro rata allocation of Income Tax from the State of Illinois based on eight percent of net personal taxes
and 9.14 percent of corporate taxes. There is a perennial concern that the Illinois legislature will reduce the
amount remitted to municipalities to address state budget deficits.
The Use Tax is a form of sales tax designed to distribute the tax burden fairly among consumers and assures fair
competition between in-state and out-of-state businesses. The tax is owed on goods purchased out of Illinois and
brought into the state.
Based upon data provided by the Illinois Municipal League, the FY 2017 Income Tax budget is $4.3 million ($104.04
per capita) and Use Tax is $1 million ($24.36 per capita). Collectively, Income and Use tax will be at budget and are
projected to increase by five percent in FY 2017. The Village of Buffalo Grove’s unemployment statistics have
consistently beat the metro and state averages, with an September 2016 rate of 4.2 percent.
Provided below is the ten year trend on combined income and use taxes.
General
Merchandise, 0.08%
Food, 14.94%
Drinking and Eating
Places, 9.36%
Apparel, 0.93%
Furniture & House Hold &
Radio, 3.19%
Lumber, Bldge,
Hardware, 14.93%
Automotive & Filling
Stations, 9.90%
Drugs & Misc. Retail,
28.47%
Agriculture & All
Others, 15.63%
Manufacturers,
2.56%
Utility Use Taxes
The Village of Buffalo Grove levies three utility taxes for electricity, natural gas, and telecommunications. Use taxes
for electricity and natural gas were first imposed in FY 2010. The amount levied for electricity is the maximum
amount allowed by state statute and is based on a sliding scale that nets approximately $.05 per kilowatt hour.
Revenue is estimated to be $1.65 million for 2016 and the budget is largely unchanged for 2017 at $1.66 million.
Utility taxes for natural gas are levied at a rate of $0.05 per therm. The estimated amount for 2016 is $1 million
with the budget for FY 2017 increasing by $20,000.
Since both electricity and natural gas use taxes are based on unit charges there are no fluctuations due to
commodity pricing. Absent any increase in households or commercial buildings within the village, this revenue
source has little room for future growth. Weather conditions are the primary reason for changes in revenue but
the movement toward more efficient building technologies and appliances will be a constant pressure downward
on the collection of this revenue.
Telecommunications Tax
This tax is levied at six percent on all types of telecommunications except for digital subscriber lines (DSL)
purchased, used, or sold by a provider of internet service. The unbundling of phone and data services for the
purpose of extending the tax has had a significant negative impact on collections. Voice over Internet Protocol
(VoIP) phone services are subject to this taxation.
The estimated actual for 2016 will meet budgeted expectations at $1.6 million. The budget remains unchanged for
2017.
Real Estate Transfer Tax
Real estate transfer tax is collected at the rate of $3 per $1,000 of sales consideration. This revenue reached a peak
in 2005 at $1.3 million. In recent years, this revenue has relied heavily on the sale of large commercial properties
(sales consideration greater than one million dollars). The estimated amount for FY 2016 will exceed budget by
14.6 percent as the real estate market posted strong sales activity through much of the year.
The budget for 2017 is three percent more than the 2016 estimated actual of $.92 million and 15.9 percent higher
than the previous year’s budget.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017
budget
Income & Use Tax Revenue History
Building Revenue & Fees
This revenue is budgeted conservatively as a significant percentage of this revenue is considered non-recurring and
is reliant upon economic conditions. For 2017, it is estimated that the Easton Station Townhome project will be
completed. Furthermore, Woodman’s, Metro Storage and the addition to Sky Fitness will be under construction
resulting in over $100,000 in additional building permit and inspection revenue. All other revenue is anticipated to
be collected on improvements to existing structures. Total building revenues and fees for 2016 are estimated to
come in 60 percent over the budget amount. The Village has conservatively budgeted these line items as they are
volatile due to the direct correlation between these revenue streams and market conditions. The total amount
budgeted for FY 2017 is $.9 million.
Storm Water Management Fees
This was a new source of revenue for FY 2016. The system user fees are charged to all properties in the Village for
the proportionate cost of maintaining the storm water conveyance operating costs and infrastructure. The fee is
charged as a flat rate for all residential properties based upon the average lot size within the Village.
Commercial/industrial users pay a fee on the actual surface area. The budget for FY 2017 is $1.1 million.
Motor Fuel Tax
For FY 2017, the Village anticipates $1 million in Motor Fuel Tax proceeds as estimated by the Illinois Municipal
League. Local governments receive 1.25 percent of taxes assessed on gasoline and diesel and is then distributed on
a per capita basis. Street maintenance is a high priority for the Village of Buffalo Grove as noted in the Capital
Improvement Plan (CIP), detailed in Section 6 of this document. It is assumed that elevated fuel costs, alternative
energy options, availability and improvement of public transportation, and environmental awareness have already
slowed the growth of MFT revenues in recent years. It is becoming more common for employers to provide more
flexible work schedules and telecommuting to attract talented employees as technology and traditional work
environments evolve. These changes will impact growth in this revenue.
Water and Sewer Fees
Total fees collected for the sale of water combined with revenue collected on behalf of Lake County Public Works
for 2017 is $11.4 million. Over a quarter of the revenue (29.7 percent) is billed by the Village and then remitted
directly to Lake County for sanitary sewer treatment fees. Lake County owns and operates the south east region
sewer treatment plant. The Village bills the services on their behalf to reduce overhead and administrative costs.
The budgeted assumption for annual consumption is 1.2 billion gallons metered.
The decline in water usage has appeared to stabilize over the four years. The decreased demand was due to
weather (summer irrigation), an effective campaign to conserve water, eco-friendly landscape designs, energy
efficient appliances and a decrease in average household size. The Village does not impose a minimum or fixed fee
for service connection but will be researching the feasibility of one in future budgets.
It is estimated that the total amount of water consumed by the Village will remain unchanged in 2017. The chart
below illustrates the annual water consumption of all users (residential, commercial, industrial).
The justification for the water rate is based on a Water Fund sustainability study entitled the Twenty Year Water
Fund Pro-forma Analysis. The study is located in Appendix B. The purpose behind the analysis was to design a fee
structure that would adequately fund a utility system with a present day replacement cost of $.5 billion. The
components of the rate address operating costs, capital maintenance and repairs, and building reserves for future
infrastructure needs.
During high cost growth years (1980-2000), the Village amassed significant cash reserves from developer fees. The
original infrastructure was constructed by developers and donated to the Village. During that period of time, the
intent of the water user rate was to recover operating costs only. As the development and related revenues
slowed, cash reserves were used to subsidize the water rate to cover both operating and capital expenses.
The three year rate history is:
Year Water Rate* Sewer Rate* Combined Rate*
2015 $ 4.38 $ 1.09 $ 5.47
2016 $ 4.56 $ 1.13 $ 5.69
2017 $ 4.74 $ 1.17 $ 5.91
*all rates are per 1,000 gallons metered
Effective January 1, 2015 – rates are increased by 4 percent per annum
The annual rate increase will take several years to stabilize the fund and begin to accumulate a reserve for future
infrastructure improvements. The following chart shows the impact on cash reserves based on the proposed rate
structure and forecasted expenses over the next twenty years.
100,000
300,000
500,000
700,000
900,000
1,100,000
1,300,000
1,500,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Annual Gallons Billed (in thousands)
73
Working Cash represents a minimal amount of cash on hand needed that would cover 25 percent of operating
expenses.
The Lake County sanitary sewer fee estimate is on target with the 2016 budget and no changes in the rate for
2017. However, the summer sewer credit may change. The Village is working with Lake County Public Works
Department on a new use agreement. One change will be the summer sewer credit rate. Presently the cap is at
110 percent of non-summer usage. The cap will increase to 120 percent for 2017.
The Lake County Board sets the sanitary sewer charge. The revenue collected is a pass through as the amount is
remitted to Lake County upon collection. This fee is charged to Lake County customers. Cook County residents are
charged for sanitary sewer fees through a property tax levied by the Metropolitan Water Reclamation District of
Greater Chicago.
Golf Course Fees
A minor decrease in operating revenue was budgeted for FY 2017. The golf industry as a whole continues to
struggle with declining numbers of players in a market that is oversaturated with golf courses. In FY 2016, the
Arboretum is estimated to be $4,497 short of budgeted operating revenue. With daily paid rounds of golf being
the driver for revenues, the Arboretum got off to a slow start to the 2016 season. The green fee rates will not
increase at either course in 2016.
Total golf course operating revenues at the Buffalo Grove Golf Club in 2017 will result in a decrease of 1.16 percent
as measured against the 2016 budget. The club will continue to struggle with weather patterns as it currently sits
in a flood plain. The 2016 budget for the Buffalo Grove Golf Club does account for inclement weather patterns on
the revenue side and also a reduction of expenses to accommodate the short fall in revenue.
Investment Revenues
The Village’s investments are guided by three policies that address permitted investments in the portfolios of the
Police Pension Fund, Firefighter Pension Funds, and all other funds. Total investment revenue is expected to be
$5.4 million. All funds other than pension funds have durations less than three years with an average expected
yield of .5 percent. All investments are laddered to meet the cash flow needs of the fund. The primary strategy for
non-pension investments is safety and liquidity. Both pension funds have interest rate targets of seven percent for
their actuarial assumption. The pension funds are the only Village funds that purchase equity investments. The
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Twenty -Year Cash Position
Net Reserve Working Cash
Police and Firefighter Pension Fund Boards are fiduciaries of their respective funds and separately administer the
funds’ investments with the assistance of outside financial advisors.
Pension Revenues
The Village maintains two pension trust funds mandated by Illinois Compiled Statutes, one for sworn police officers
and one for sworn firefighters. All other full-time Village employees are covered by the Illinois Municipal
Retirement Fund (IMRF), a statewide Public Employees Retirement System (PERS).
Revenues received by the Police and Firefighter Pension Funds are calculated by an independent actuary. The
property tax levies for the Police and Firefighter Pension Funds are anticipated to increase by 3.5 percent and
decrease by 14.3 percent change, respectively. The levy for IMRF and Social Security/Medicare will increase by
2.5 percent. Employees contribute 9.91 percent of salary for police and 9.455 percent for firefighters. Employees
contribute 4.5 percent of salary for IMRF, 6.2 percent for Social Security and 1.45 percent for Medicare.
The actuarially assumed rate of investments is 7.0 percent for the public safety funds and 7.5 for IMRF. The current
level of funding for the pension funds are, Police Pension Fund (63.4%), Firefighters’ Pension Fund (72.9%),
and IMRF (70.7%).
Other Revenue Sources
The above information highlights the key revenue sources of the Village. Other revenues are less material and are
projected to be in line with inflation or other economic trends. There are no new taxes or fees contemplated
within the FY 2017 budget.
Expenditure Trends and Projections
Personnel Services
The primary mission of the Village of Buffalo Grove is to provide high quality services to residents and those
employed within its boundaries. To accomplish that purpose in 2017, 29.9 percent of all Village expenditures are
allocated to salaries and wages, up 1.0 percent from 2016.
The Village’s pay ranges are evaluated every 3 years to establish both internal and external equity within the market
and to ensure fair and competitive wages. The implementation of a Tier II pay system combined with limited pay
increases has allowed the Village to continue with expected service levels. In FY 2015, a pay for performance
system was implemented that will better measure employee progress against stated goals, fostering a stronger
environment of accountability.
There are two unionized labor groups subject to a collective bargaining agreement – International Association of
Firefighters Local #3177 – representing 51 firefighters and the Metropolitan Alliance of Police – representing 46
police officers. The current firefighter contract is set to expire April 30, 2017. The police union was certified in 2012
and the current contract expires on December 31, 2016. At this time negotiations are already underway.
The non-represented work force will receive a 2.0 percent general wage increase.
The proposed increase in wages from the 2016 budget is 3.4 percent. That increase is due to a general wage
adjustment for non-represented employees of 2.0 percent and pay for performance. Police and firefighter repres-
ented wages will increase based upon a negotiated agreement.
Personnel Benefits
The Village of Buffalo Grove is a member of the Intergovernmental Personnel Benefits Cooperative. The IPBC is a
pooled benefit cooperative with approximately eighty member communities. For 2017, the total amount budgeted
for health insurance is $4.3 million, down $0.2 million from the 2016 budget. The Village addresses the challenge
of increasing healthcare costs throughout the year to ensure claims are at or below budget. If the trend projects
that healthcare claims are going to be over budget, reductions within departments will be made to accommodate
the increase in plan usage. The other large component of personnel benefit cost is the Retiree Health Savings
(RHS) Program reserve. The RHS Program is designed to monetize unused employee sick time at the end of
employment to be used for unreimbursed medical expenses.
$5,000,000.00
$10,000,000.00
$15,000,000.00
$20,000,000.00
$25,000,000.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Wage Growth - All Funds
The Village has been proactive in trying to contain medical costs. Those efforts will continue in 2017 by focusing on
wellness and disease management. Employees cover 15 percent of the premium for the plan they choose to
participate in, while retirees who elect to stay on one of the Village healthcare plans pay 100 percent of the
premium.
Commodities
Approximately six percent of the entire Village budget is allocated to commodities. The single largest expense is for
the sanitary sewer fees collected on behalf of Lake County, budgeted at $3.4 million in 2017. The Lake County
sanitary sewer fees account for over 75 percent of the Village’s entire commodities budget. As these fees are a
pass through, there is corresponding revenue to offset this expense. The next most significant expenses are for
fuels, energy, and material costs for the snow and ice removal program. The Village purchases salt and other
routine equipment through the Northwest Municipal Conference’s Joint Purchasing Cooperative. This cooperative
creates economies of scale and leverages buying power. The most significant sources of electricity expenses are to
power the sanitary sewer lift station pumps, the booster pumps for water delivery, and street lighting.
Capital Projects & Equipment
Almost 13 percent of all 2017 budgeted expenditures are for capital projects and capital assets. These items are
identified in detail in the 2017-2021 Capital Improvement Plan as shown in Section 6: Capital Improvement Budget
Summary and reserves for capital. Capital projects are those that typically exceed $25,000 and either are new
construction (or acquisition) or add to service life of the asset. Each year, all proposed capital projects are
assessed in terms of reliability, performance and forecast maintenance experience and a plan is developed to
gauge the operational importance of the request versus the Village’s ability to pay for the improvement.
The Village maintains four capital reserve funds with the most recent addition, infrastructure replacement, coming
online in 2016. The first fund is the reserve for capital replacement. This reserve was established to fund all
vehicles and specialized equipment. As the asset nears the end of its service life, the funds are in place for a
replacement purchase. The second reserve is a reserve for technology. This reserve commits funds for future
technology investments. By allocating a transfer to the reserves each year, the capital spending amount is
smoothed out and not subject to spikes. The third reserve is a reserve for buildings and facilities. Budgeted dollars
will be allocated to future building repairs including roofs and mechanical systems. The fourth reserve as noted
above is for infrastructure. Those reserves will be allocated to maintaining the storm water system. As the Village
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Health Insurance Costs
77
facilities continue to age, maintenance costs will continue to rise. In total $1.12 million will be committed in 2017
for these four reserves.
Several significant capital projects are programmed for 2017. The first project is the annual street maintenance
program. This program continues to be a top priority of the Village Board. The resources directed to maintaining
and improving the Village’s roadway system are received from the State of Illinois pro rata share of Motor Fuel Tax.
The second project undertaken are the improvements needed at Village facilities. These improvements include
HVAC units at various sites, parking facility maintenance, roof replacements, floor replacements, and other items
detailed in Section 6, Capital Improvement Plan. The amount budgeted for facilities in 2017 is $1.88 million, which
accounts for 27 percent of the capital improvement budget.
The third project of note is the water and sewer fund capital needs. Like roads and facilities they need to be
maintained and replaced on a cyclical basis that carries on in perpetuity. The largest projects in those funds are
water main replacements ($0.9 million), lift station repair and rehab ($0.9 million), and pump house repairs and
security improvements ($0.3 million). Both funds total outlay for fiscal year 2017 is $2.18 million, or 31.7 percent
of the total capital improvement budget.
The Village will also continue to fund initiatives to Improve the Buffalo Grove Golf Clubhouse and Restaurant
($0.46 million), Storm Sewer Maintenance ($0.3 million), and Sidewalk/Bike Path Maintenance ($0.15 million).
Other Operating Expenditures
In general, when prices cannot be accurately determined or specific quantities identified, an incremental analysis is
performed comparing the estimated actual expense for 2016 along with expenditure trend information. A
reasonable estimation of expenditure is developed for 2017 and included within the line item budget.
The Village has centralized the purchasing function which controls purchases through a central contact (Purchasing
Manager). This has allowed the Village to better leverage purchasing power and provide better oversight of
contracts for products and services. Greater savings will be realized over the next few years as existing leases and
contracts expire and are renegotiated and/or bid under the new program.
The Purchasing manager is the delegate for the Village to the Suburban Purchasing Cooperative. The Suburban
Purchasing Cooperative is a joint purchasing program sponsored by the Northwest Municipal Conference (NWMC),
DuPage Mayors & Managers Conference (DMMC), South Suburban Mayors and Managers Association (SSMMA),
and Will County Governmental League (WCGL). Together the SPC represents 140 municipalities and townships in
northeastern Illinois.
Debt Service Expenditures
The Village currently has four bond issues outstanding as of January 1, 2017, all being General Obligation Bonds
(Series 2010A, Series 2010B, Series 2012, and Series 2016). Bond descriptions and amortization schedules are
listed within the Debt Profile of this section. Most Village debt service revenues are obtained through property tax.
Two funds will be abating a portion of the 2017 principal and interest due. The Refuse fund will transfer $425,000
and the Water and Sewer Fund will provide $180,000. The operating transfers from these funds to abate a portion
of the taxes are attributed to Public Service Center and road improvements.
The cost related to servicing the debt for performance contracting (water meter replacements) will be paid from
additional revenue earned though the use of more efficient meters. The line of credit principal and interest is paid
from the Capital Projects Fund.
Enterprise Fund Expenses
The Water and Sewer, Refuse, and Golf Funds are considered enterprise funds. Enterprise funds function like
private sector businesses in that retail prices (rates and user fees) must be set at appropriate levels that are
sufficient to pay for the costs of providing the goods. There is no property tax levey used to balance enterprise
fund operations. There is a subsidy transfer to the Buffalo Grove Golf Club from the General Fund of $103,185 and
another to the Arboretum Golf Club for $196,468. These transfers are necessary to stabilize golf operations due to
the charge back of the three internal service funds, information technology, central garage, and building
maintenance. These funds have increased the expenditure burden of all departments that utilize the services
provided. In an effort to drive down costs, both courses have outsourced the maintenance of the grounds
resulting in a reduction of labor costs.
As noted, the Water and Sewer Fund has a budgeted rate increase to provide sufficient operating revenues and
capital reserves. The largest cost within the Water and Sewer Fund is for capital improvements, the wholesale cost
of water ($1.7 million) through the Northwest Water Commission, and the pass through costs ($3.4 million) of Lake
County sanitary sewer services.
The costs within the Refuse Fund are the tipping fees collected and remitted to the Village by the current waste
hauler and sent to the Solid Waste Agency of Northern Cook County (SWANCC) for costs associated with
processing and delivering the waste. There is a transfer of $0.45 million to the Debt service fund to cover a portion
of the Series 2016 bonds issued for street repair and maintenance. A budgeted transfer of $0.1 million will be
made to the General Fund to reimburse for work performed on behalf of the fund to manage the service contract.
Internal Service Funds
The Information Technology, Central Garage, and Building Maintenance Funds are Internal Service Funds first
budgeted in 2015. In FY 2017 and future years, the actual department demand for services will result in a
modification to the subsequent year’s budget. An internal service fund accounts for goods and services designated
to a department that are utilized by one or more other governmental units and are reimbursed from the
departments that utilize these services. Each department has an expenditure line item for each service they
utilize. The expenditure is a combination of the budgeted costs their department would normally incur plus a
portion of overhead to operate the Internal Service Fund departments based on the weighted average of the
expenditures to be incurred. Costing out internal service funds allows the Village to gain a more accurate cost to
provide services.
The Information Technology Fund’s budget is $1,351,359, Central Garage is budgeted at $1,756,782, and Building
Maintenance is budgeted at $1,462,984. The Internal Service Funds are not intended to carry a fund balance at
the end of a fiscal year. As they are intended to break even, this may result in additional expenditures incurred by
each department to fund the additional costs, if a fund or funds come in over budget. Concurrently, if the internal
service funds come in below the budgeted amount(s), a refund will be distributed back to the departments which
will show the expenditure below budget for the year.
Debt Position
From time-to-time, the Village may use the issuance of long-term debt to further the Village’s Capital Improvement
Program. Long-term debt is used only for capital projects that cannot be financed from current revenue sources.
The Village accounts for repayment of long-term debt in the Facilities Development Debt Service Fund. In FY 2017,
debt service consists of $400,350 for Series 2010A, $277,438 for Series 2010B, $137,525 for Series 2012, and
$862,831 for Series 2016. Total debt outstanding as of December 31, 2016 is $15.64 million. The Village has an $8
million line of credit with a balance of $4.5 million as of December 31, 2016. The line of credit was extended in
November 2015 for an additional three years. Below is a chart depicting the future principal and interest payments
of all general obligation debt, exclusive of the line of credit.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Debt Service Schedule by Fiscal Year
Series 2016
Series 2010A
Series 2010B
Series 2012
80
The Village of Buffalo Grove is a home-rule community and has no legal debt limit set by the Illinois General
Assembly. The Village monitors the overlapping debt of all taxing districts and is sensitive to the burden debt
places on the taxpayer. As of December 31, 2016, the Village’s ratio of General Obligation bonded debt to EAV was
1.03 percent. Please see Appendix B: Financial Policies and Projections for a copy of the Village’s Debt Policy.
Below is a five year chart depicting debt as a percentage of EAV.
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Ratio of General Obligation Debt to EAV
81
Debt Service Schedules
Overview
The following summarizes the debt service obligations of the Village as of December 31, 2016.
2010A General Obligation Refunding Bonds
Purpose: Refunding all of the Village's outstanding debt: Series 2001A and Series 2001B.
The 2001A Bonds were issued to partially finance the rehabilitation and
improvement of existing golf course facilities and the 2001B proceeds were
used to finance the refunding of the Village's outstanding debt at that time.
Maturity Date: 12/30/2020
Original Principal Amount: $5,310,000
Investment Rating: Moody's Investors Service: AAA
Standard & Poor's: AAA
Principal Outstanding: $1,470,000
Interest: $ 146,750
2010B General Obligation Bonds
Purpose: Proceeds used to finance public capital infrastructure improvements including
storm water drainage, the construction of water detention facilities,
installation of storm sewers and storm box culverts, roadway reconstruction,
landscape walls reconstruction, and sidewalk removal and restoration.
Maturity Date: 12/30/2025
Original Principal Amount: $2,600,000
Investment Rating: Moody's Investors Service: AAA
Standard & Poor's: AAA
Principal Outstanding: $2,045,000
Interest Outstanding: $ 391,648
2012 General Obligation Bonds
Purpose: Proceeds used to complete street improvement projects identified in the FY
2013 Capital Improvement Plan.
Maturity Date: 12/30/2030
Original Principal Amount: $6,000,000
Investment Rating: Moody's Investors Service: AAA
Standard & Poor's: AAA
Principal Outstanding: $6,000,000
Interest Outstanding: $1,392,550
2016 General Obligation Bonds
Purpose: Proceeds used to complete street improvement projects identified in the FY
2016 Capital Improvement Plan.
Maturity Date: 12/30/2031
Original Principal Amount: $6,125,000
Investment Rating: Moody's Investors Service: AAA
Standard & Poor's: AAA
Principal Outstanding: $6,125,000
Interest Outstanding: $1,005,806
82
Debt Service Schedules
Annual Payments - General Obligation Debt
Principal
Fiscal Year Series 2010A Series 2010B Series 2012 Series 2016 Total
2017 345,000 200,000 - 730,000 1,275,000
2018 360,000 205,000 100,000 650,000 1,315,000
2019 370,000 210,000 100,000 530,000 1,210,000
2020 395,000 220,000 100,000 570,000 1,285,000
2021 - 225,000 415,000 300,000 940,000
2022 - 235,000 425,000 305,000 965,000
2023 - 240,000 440,000 310,000 990,000
2024 - 250,000 450,000 315,000 1,015,000
2025 - 260,000 470,000 325,000 1,055,000
2026 - - 650,000 330,000 980,000
2027 - - 650,000 335,000 985,000
2028 - - 700,000 345,000 1,045,000
2029 - - 750,000 350,000 1,100,000
2030 - - 750,000 360,000 1,110,000
2031 - - - 370,000 370,000
Total 1,470,000 2,045,000 6,000,000 6,125,000 15,640,000
83
Debt Service Schedules
Annual Payments - General Obligation Debt
Interest
Fiscal Year Series 2010A Series 2010B Series 2012 Series 2016 Total
2017 55,350 73,438 137,525 132,831 399,144
2018 45,000 66,938 137,525 118,231 367,694
2019 30,600 59,763 135,525 105,231 331,119
2020 15,800 52,413 133,525 94,631 296,369
2021 - 44,713 131,525 83,231 259,469
2022 - 36,725 123,225 77,231 237,181
2023 - 28,265 114,725 71,131 214,121
2024 - 19,385 105,925 64,931 190,241
2025 - 10,010 96,925 58,631 165,566
2026 - - 86,938 52,131 139,069
2027 - - 72,313 45,531 117,844
2028 - - 56,875 38,413 95,288
2029 - - 39,375 30,650 70,025
2030 - - 20,625 21,900 42,525
2031 - - - 11,100 11,100
Total 146,750 391,648 1,392,550 1,005,806 2,936,754
84
Fund Balance Projections by Fund
The fund balance is the fund equity of governmental funds. Changes in fund balances are the result of the
difference of revenues to expenditures. Fund balances increase when revenues exceed expenditures and decrease
when expenditures exceed revenues. For the General Fund, only unassigned fund balance is noted.
The Village of Buffalo Grove uses cash and investments as a proxy for fund equity in the enterprise funds. The
following table depicts the proposed revenues and expenditures by fund for the FY 2017 budget, with surplus
(deficit) shown for each fund.
Fund
Fund Balance
January 1,
2017 2017 Revenue
2017
Expenditures
Excess of
Revenue over
Expenditures
Fund Balance
December 31,
2017
General Fund 14,983,170 42,010,229 42,002,395 7,834 14,991,004
Special Revenue Funds
Parking Lot 80,344 211,200 211,021 179 80,523
Motor Fuel Tax 1,765,559 1,000,000 1,500,000 (500,000) 1,265,559
Debt Service Fund
Debt Service 5,282 1,673,895 1,679,144 (5,249) 33
Capital Project Funds
Facilities (3,707,560) 2,440,303 1,974,723 465,580 (3,241,980)
Streets 162,158 1,537,950 350,000 1,187,950 1,350,108
Enterprise Funds
Water and Sewer (cash) 2,695,205 11,446,543 11,659,680 (213,137) 2,482,068
Arboretum Golf Course - 1,465,228 1,465,228 - -
B.G. Golf Course - 1,201,385 1,719,385 (518,000) (518,000)
Internal Service Funds
Information Technology - 1,351,359 1,351,359 - -
Central Garage - 1,756,782 1,756,782 - -
Building Maintenance - 1,462,984 1,462,984 - -
Trust and Agency Funds
Police Pension 59,559,273 6,367,129 3,945,000 2,422,129 61,981,402
Firefighter Pension 53,793,983 4,630,904 2,732,912 1,897,992 55,691,975
Total All Funds 129,337,414 78,555,891 73,810,613 4,745,278 134,082,692
Multiple funds have an excess of 10 percent change in fund balance in fiscal year 2017. The Motor Fuel Tax Fund
will have an operating expenditure deficit of 28.32 percent which is attributed to a road project that was budgeted
to be completed in 2016 and will not be completed. This project and the funding for it has been moved forward to
FY2017. The Debt Service Fund has a small fund balance that will be used to offset debt service expenditures in
2017. The Buffalo Grove Golf Fund will decrease its fund balance by 55.17 percent due to clubhouse
improvements. Expenditures are budgeted to exceed revenues by $518,000. The Refuse Fund is budgeted to
transfer $265,000 to the Debt Service Fund to cover a portion of the road repairs funded by the Series 2016 bonds.
Across all funds the budgeted revenues and expenditures should increase the total fund balance 3.05 percent by
the end of FY 2017.
85
Section 5
General Fund Summary and Detail
General Fund Revenue
Office of the Village Manager
Finance and General Services
Human Resources
Fire Services/EMA
Police Services
Community Development
Public Works Management and Administration
Non-operating Transfers
General Fund Revenue
The General Fund Revenue Budget for 2017 is $42,010,229 representing a 0.71 percent increase over the 2016
budgeted amount, and a 0.69 percent increase over the 2015 actual revenues. Property taxes, state shared taxes
(sales tax and income tax), home-rule sales tax, prepared food & beverage tax, telecommunications tax, and other
taxes comprise 85.15 percent of the revenue budgeted in 2017.
For a more detailed description on revenues and assumptions, refer to Section 4 Executive Overview.
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 – General Fund
10 – Property Taxes
400.01 Property Corporate Levy –
Cook County 539,371 554,593 574,731 574,731 586,226
400.02 Property Corporate Levy –
Lake County 1,791,917 1,834,318 1,896,886 1,896,886 1,934,824
400.03 Property Police Protection –
Cook County 127,218 133,481 151,852 151,852 154,889
400.04 Property Police Protection –
Lake County 422,648 441,492 501,190 501,190 511,214
400.05 Property Crossing Guard
Levy – Cook Cty 12,487 13,050 - - -
400.06 Property Crossing Guard
Levy – Lake Cty 41,483 43,167 - - -
400.07 Property Fire Protection –
Cook County 909,708 951,333 989,173 989,173 1,008,957
400.08 Property Fire Protection –
Lake County 3,022,262 3,145,002 3,263,158 3,263,158 3,328,421
400.09 Property Street & Bridge
Levy – Cook Cty 169,202 176,856 183,278 183,278 186,944
400.10 Property Street & Bridge
Levy – Lake Cty 562,127 584,956 604,908 604,908 617,006
400.11 Property Street Lighting
Levy – Cook Cty 57,366 59,961 62,138 62,138 63,381
400.12 Property Street Lighting
Levy – Lake Cty 190,582 198,320 205,085 205,085 209,187
400.13 Property ESDA Levy – Cook
County 3,036 3,180 - - -
400.14 Property ESDA Levy – Lake
County 10,084 10,524 - - -
400.30 Property FICA Levy – Cook
County 155,583 151,371 156,113 156,133 156,133
400.31 Property FICA Levy – Lake
County 518,214 505,554 520,285 520,285 520,285
400.32 Property IMRF Levy – Cook
County 203,673 195,033 190,769 190,769 190,769
400.33 Property IMRF Levy – Lake
County 675,035 651,379 635,788 635,788 635,788
400.50 Property Police Pension – 1,594,352 1,745,722 1,877,032 1,877,032 1,878,255
Lake County
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
400.51 Property Police Pension –
Cook County 489,406 525,864 563,207 563,207 659,928
400.60 Property Fire Pension – Lake
County 1,660,269 1,682,255 1,672,727 1,672,727 1,415,632
400.61 Property Fire Pension –
Cook County 508,574 507,154 501,905 501,905 447,042
10 – Property Taxes 13,664,597 14,114,566 14,550,225 14,550,245 14,504,881
Percent Change 2017 vs. 2016 Budget -0.31%
15 – Other Taxes
410.05 State Shared Local Use Tax 810,688 922,950 920,400 944,027 1,010,889
410.10 State Shared State Income
Tax 3,929,756 4,519,494 4,628,000 4,079,435 4,317,278
410.15 State Shared Sales Tax –
State 5,602,290 6,198,496 5,665,000 5,708,150 5,796,000
410.16 State Shared Sales Tax
Rebate Payments -492,271 -555,151 - - -
410.20 State Shared Road & Bridge
Tax Wheeling 24,986 24,880 27,000 27,000 27,000
410.25 State Shared Road & Bridge
Tax Vernon 153,312 153,192 152,000 153,000 153,000
410.50 State Shared Replacement
Tax 6,407 - - - -
415.05 Local Sales Tax – Home Rule 3,939,275 4,275,043 3,748,636 3,825,000 3,860,000
415.10 Local Home Rule Rebate -593,322 -643,611 - - -
415.15 Local Real Estate Transfer
Tax 790,819 904,311 821,600 924,500 952,235
415.20 Local Hotel/Motel Tax 199,656 127,770 144,200 128,000 128,000
415.25 Local Simplified
Telecommunications Tx 1,679,653 1,644,309 1,639,327 1,640,000 1,640,000
415.30 Local Prepared Food &
Beverage Tax 728,515 761,254 746,750 755,000 700,000
415.35 Local Electricity Use Tax 1,644,022 1,628,529 1,650,000 1,650,000 1,663,005
415.40 Local Natural Gas Use Tax 1,175,405 1,015,113 1,020,000 1,000,000 1,020,000
415.50 Local Auto Rental Tax 955 - - - -
15 – Other Taxes 19,600,147 20,976,580 21,162,913 20,834,112 21,267,407
Percent Change 2017 vs. 2016 Budget 0.49%
20 – Intergovernmental Revenue
440.15 Local Reimb – District #214
Officer 234,999 177,809 90,130 90,130 95,741
440.20 Local Reimb – Various Govts
Fuel 88,665 54,408 70,000 70,000 70,000
440.25 Local Reimb – D.A.R.E.
Officer 13,206 10,703 89,780 87,254 92,044
440.35 Local Reimb – Park District IT
Support 23,080 - - - -
440.40 Local Crossing Guard
Reimbursement 19,865 26,047 33,558 20,974 21,499
88
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
440.45 Local GMAT/BATTLE 31,000 31,000 - - -
440.46 Local Overtime Reimb – DEA - 3,511 - 11,336 9,635
440.50 Local Overtime Reimb – ICE 5,631 6,514 5,789 6,652 5,654
440.90 Local Miscellaneous - - 21,866 8,000 8,000
20 – Intergovernmental Revenue 416,445 309,993 311,123 294,346 302,573
Percent Change 2017 vs. 2016 Budget -2.75%
25 – Licenses
420.05 Business Licenses 36,190 145,156 100,000 100,000 100,000
420.10 Tobacco Licenses 1,875 1,650 1,800 1,650 1,650
420.15 Vending Machine Licenses 4,680 3,250 3,150 3,000 3,000
420.20 Chauffer Licenses 1,560 1,375 1,450 1,375 1,375
420.25 Alarm Permits 9,920 44,025 27,000 27,000 27,000
420.50 All Other Licenses 11,197 9,295 9,000 9,000 9,000
425.00 Liquor Licenses 900 125,350 - - -
425.05 Liquor Licenses Class A 50,000 4,350 50,000 47,500 47,500
425.10 Liquor Licenses Class B 20,700 - 22,000 20,700 20,700
425.15 Liquor Licenses Class C 28,750 - 27,500 32,500 32,500
425.20 Liquor Licenses Class D 3,600 - 5,400 10,800 10,800
425.25 Liquor Licenses Class E 9,500 - 10,500 9,000 9,000
425.30 Liquor Licenses Class F 4,000 - 4,000 2,000 2,000
425.50 Liquor Licenses Other 17,740 9,031 16,000 15,150 15,150
430.05 Animal Licenses Dogs 6,695 6,095 6,700 6,000 6,000
430.10 Animal Licenses Cats 305 465 310 465 465
25 – Licenses 207,612 350,042 284,810 286,140 286,140
Percent Change 2017 vs. 2016 Budget 0.47%
30 – Permits
435.05 Development Building
Permits 44,278 36,924 35,000 10,000 10,000
435.10 Engineering Fees 79,988 44,655 45,000 95,000 100,000
435.15 Contractor Registration 86,770 92,700 83,000 92,700 92,700
435.20 Plan Review Fees 88,961 94,712 60,000 100,000 70,000
435.25 Filing Fees 4,400 5,553 2,500 6,500 3,500
435.30 Annexation Fees 6,300 16,100 - 6,300 -
435.35 Building Inspection Fees 289,597 355,736 200,000 500,000 350,000
435.40 Plumbing Inspection Fees 41,697 38,827 30,000 38,000 33,000
435.45 Electrical Inspection Fees 63,933 55,870 45,000 45,000 45,000
435.50 Mechanical Inspection Fees 16,975 29,402 18,000 30,000 20,000
435.55 Sign Inspection Fees 7,130 7,789 7,000 6,000 6,000
435.60 Elevator Inspection Fees 29,890 30,085 30,000 30,000 30,000
435.65 Fire Suppression Inspection
Fees 1,894 7,389 2,500 12,000 5,000
435.70 Rental Inspection Fees 145,935 159,498 103,000 110,000 110,000
435.71 Other Non-Business Lic &
Permits 46,488 44,865 45,000 45,000 45,000
30 – Permits 954,235 1,020,105 706,000 1,126,500 920,200
Percent Change 2017 vs. 2016 Budget 30.34%
35 – Fines and Fees
455.05 Court Fines Cook 9,525 9,182 12,000 16,000 16,000
89
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
455.10 Court Fines Lake 473,149 419,476 400,000 400,000 400,000
455.15 Village Ordinance Fines 65,022 105,336 92,000 160,000 170,000
455.20 Alarm Service Calls 48,425 26,925 31,000 35,000 35,000
455.25 Accident Reports 8,035 6,530 5,789 7,815 6,643
455.30 Fingerprint Fees - 3,265 2,000 2,820 2,397
455.35 Ambulance Transport Fees 824,428 1,031,546 886,512 890,000 890,000
455.40 Subpeona Fees 50 169 250 100 100
455.45 DUI Assessments 55,119 27,091 22,876 24,000 24,000
455.50 Impounding Fees 128,118 112,805 119,850 99,000 84,150
455.60 Administrative Bail Fee 7,760 6,520 7,395 5,280 4,488
455.65 Special Rescue Billing 3,540 - 40,000 40,000 40,000
455.85 Access & Review Criminal
History - 10 - - -
35 – Fines and Fees 1,623,171 1,748,855 1,619,672 1,680,015 1,672,778
Percent Change 2017 vs. 2016 Budget 3.28%
40 – Charges for Services
441.30 Sales of Water Construction
Water 488 1,601 - - -
444.05 Insurance Contributions
Retiree Premiums 387,219 391,140 - - -
444.10 Insurance Contributions
COBRA Premiums 15,373 - - - -
444.15 Insurance Contributions
Employee Premiums 558 946 - - -
40 – Charges for Services 403,638 393,688 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
45 – Interest Income
450.05 Savings 1,270 - 200 300 300
450.10 Investment Revenue Interest
Income –Investment Pool 795 1,756 750 1,000 500
450.15 Money Market 236 2,529 - - -
450.20 CD’s 92,941 28,038 35,000 32,000 40,000
450.25 Securities 8,525 18,643 14,000 16,500 25,000
450.35
Investment Revenue
Gain/Loss Security
Transaction
- -25,912 - - -
45 – Interest Income 103,766 25,054 49,950 49,800 65,800
Percent Change 2017 vs. 2016 Budget 31.73%
50 – Miscellaneous Revenue
465.05 Cable Franchise Fees 788,706 825,655 865,200 840,000 860,000
465.07 Storm Water Management
Fees - 11,305 1,200,000 1,100,000 1,130,000
465.10 Buffalo Grove Days 295 345 - - -
465.12 Symphonic Band 12,013 14,558 12,000 12,000 12,000
465.20 Facility Rental 3,850 3,521 3,850 3,850 3,850
90
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
465.30 Farmers Market 6,230 7,281 - - -
465.50 Misc
Reimbursements/Refunds -8,211 7,878 - - -
465.57 Reserve for Capital Replace-
Tech 142,600 - - - -
465.58 Reserve for Capital Replace-
Bldg 203,110 - - - -
465.60 Central Garage
Reimbursements 84,607 - - - -
465.65 Grants 212,500 - - - -
465.70 Recycling Proceeds 34,538 32,002 35,000 32,000 32,000
465.80 Cannabis Fees - - - 1,600 1,600
465.90 Miscellaneous Income 70,843 108,840 50,000 50,000 50,000
Total: 50 – Miscellaneous Revenue 1,551,081 1,011,385 2,166,050 2,039,450 2,089,450
Percent Change 2017 vs. 2016 Budget -3.54%
55 – Operating Transfers
460.05 Operating Transfers
Interfund Transfers In 749,627 869,928 864,000 864,000 901,000
55 – Operating Transfers 749,627 869,928 864,000 864,000 901,000
4.28%
Fund Total: 100 - Revenues 39,274,319 40,820,195 41,714,743 41,724,608 42,010,229
0.71%
91
Office of the Village Manager
The Office of the Village Manager (OVM) provides general management, staff
leadership, and administrative review and oversight to all Village departments.
Legislative Components
The objective of the Village Board is to assure the community efficient and economical government service, and to
establish policy and enact ordinances that protect the
health, safety and welfare of residents.
Village Board
Members of the Board are assigned specific areas of
responsibility by the Village President, and represent the
Village at meetings, workshops, and public hearings related
to their responsibilities.
• Board members are elected at-large and each
serves a four year term of office
• The Board establishes the vision and direction for
the Village
• The Board coordinates operations through the
Village Manager
Village Manager
• Executes policy set by Village Board
• Oversees Village day-to-day operations
Commissions, Committees and Boards
• Membership composed of Village residents
• Appointed by the Village President by and with the
consent of the Village Board
• More than 100 volunteers serve eleven
commissions, committees and boards
An overview of Village commissions, committees and board
as codified in the Municipal Code may be reviewed in
Section 2: Organization and Services.
Communications
The Village has outsourced its
communications function to a company
that specializes in communications. The
contract is managed by the Deputy
Village Manager and includes:
• Graphic Design Services
• Development and Layout of the
Village News
• Press Release Development and
Review
• Management of Social Media
Accounts
• Website Support
• On-Call Communications Support
Department Structure
Village Manager
Deputy Village
Manager
OVM Staff &
Communications
Information
Technology
Golf
93
2017 Staffing Summary
The Communications Manager position was outsourced in 2016. As part of the 2017 Budget the Office of the
Village Manager is requesting on Part Time Administrative Assistant.
Office of the Village Manager/ Administration FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Communications Manager 1 0 0 0 0 0
Deputy Village Manager 1 0 1 0 1 0
Management Analyst 1 0 1 0 1 0
Administrative Assistant* 0 0 0 0 0 1
Village Manager 1 0 1 0 1 0
Total 4 0 3 0 3 1
Full & Part-Time Total 4 3 4
Service Level Expectations
One of the goals listed in the Village Board approved strategic plan is to analyze all of the Village’s services to
determine the current service level and the resources necessary to continue the service at the current level. The
goal is to create a “catalog” of services that will highlight the costs associated with the services that the Village
provides which will also be key indicators to evaluate as the Village transitions to a program based budget.
OVM/Finance Current Service Level Revenue Expense Total Cost
Newsletter Bi-Monthly $6,000 $38,430 $32,430
Budget Summary
Legislative
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 32,650 33,000 33,000
Personal Benefits 29,747 35,525 37,525
Operating Expenses 5,546 4,915 6,200
Other Services 46,011 43,810 50,700
Other Expenses 20,402 18,000 38,000
Capital Outlay 267 75,600 -
Total 134,623 210,850 165,425
94
Budget Variance
Legislative
Line Item
Number Description Percent
Change
Amount
Change Description of Change
510.08 Reception & Community
Affairs -20% (1,500) Reduced based on anticipated usage in 2017.
525.35 Arts Commission 300% 3,000
Arts Commission is proposing to have a consultant
to come in and plan an event that is revenue
neutral. The funds budgeted include this
consultant ($3,500).
525.95 Other Boards &
Commissions -100% (100) Reduced based on anticipated usage in 2017.
580.05 All Other Expenses New 2,000 Citizen Service Request System Study.
580.10 Consultant Fees 300% 15,000 Community-wide survey.
580.45 Cable Television
Programming -33.33% (6,500)
Reduction in expenses due to the COW/Regular
Board meeting change. Less expense related to
record the Village Board meetings.
510.06 Office and Other
Equipment -100% (70,000) FY16 upgrades to council chambers.
134,623
210,850
165,425
Total
Legislative
2015 Actual 2016 Est Actual 2017 Budget
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 10 - Legislative 10 - Salaries
500.25 Personal Services Salaries - Elected Officials 33,000 32,650 33,000 33,000 33,000
10 - Salaries 33,000 32,650 33,000 33,000 33,000
Percent Change 2017 vs. 2016 Budget 0.00%
15 - Taxes and Benefits
505.10 Professional Training 605 180 - - -
505.15 Dues & Memberships 6,296 27,068 33,000 33,000 35,000
505.75 Employer's Contribution - FICA 2,046 2,024.61 2,046 2,046 2,046
505.85 Employer's Contribution Medicare 478.57 473.51 479 479 479
15 - Taxes and Benefits 9,425 29,747 35,525 35,525 37,525
Percent Change 2017 vs. 2016 Budget 5.63%
25 - Operating Expenses
510.04 Travel 71.02 - 100 - 100
510.08 Reception & Community Affairs 8,111 5,446 7,500 4,915 6,000
510.40 Supplies - Office - 99.47 100 - 100
25 - Operating Expenses 8,182 5,546 7,700 4,915 6,200
Percent Change 2017 vs. 2016 Budget -19.48%
35 - Other Services
525.05 Blood Commission 83.80 44 300 300 300
525.10 Buffalo Grove Days - 194 - - -
525.20 Fireworks for the Fourth 21,000 21,500 22,000 22,000 23,000
525.25 Plan Commission - 2,739.75 4,000 1,500 4,000
525.30 Residents with Disabilities - 314.88 700 810 700
525.35 Arts Commission 5,660 771 1,000 500 4,000
525.40 Zoning Board of Appeals 57 - - - -
525.45 Village Board 191 - - - -
525.50 Symphonic Band 14,047 17,045 16,200 16,200 16,200
525.55 Farmer's Market 4,321 3,401 2,500 2,500 2,500
525.95 Other Boards/Commissions - - 100 - -
35 - Other Services 45,361 46,011 46,800 43,810 50,700
Percent Change 2017 vs. 2016 Budget 8.33%
50 - Other Expenses
580.05 All Other Expenses - 738 - 2,000 2,000
580.10 Consultant Fees 3,200 79 5,000 - 20,000
580.45 Cable Television Programming 17,030 15,200 19,500 13,000 13,000
580.50 Senior Taxi Program 4,302.50 4,385 3,000 3,000 3,000
50 - Other Expenses 24,532 20,402 27,500 18,000 38,000
Percent Change 2017 vs. 2016 Budget 38.18%
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
55 - Capital Outlay
555.10 Office and Other Equipment - 266.60 70,000 75,600 -
55 - Capital Outlay - $266 $70,000 $75,600 -
Percent Change 2017 vs. 2016 Budget -100%
Department Total: 10 - Legislative 120,502 134,623 220,525 210,850 165,425
Percent Change 2017 vs. 2016 Budget -24.99%
97
98
Budget Summary
Office of the Village Manager
FY 201ϱ Actual FY 201ϲEst. Actual FY 201ϳ Budget
Personal Services 536,057 600,400 397,334
Personal Benefits 199,873 257,841 156,757
Operating Expenses 53,044 94,440 89,928
Contractual Services 1,823 1,823 2,188
Repairs and Maintenance - - 500
Other Expenses 5,393 11,000 41,800
Capital Outlay 92,191 6,620 6,620
Total 888,381 972,124 695,127
Budget Variances
Office of the Village Manager
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
500.05 Full Time (37.56%) (238,694) Reclassed Salary to Community
Development
505.05 Group & Medical Life (44.74%) (51,000) Reclassed insurance to Community
Development
505.75 Employer's Contribution -
FICA (47.42%) (16,579) Reclassed Salary to Community
Development
505.80 Employer's Contribution -
IMRF (35.29%) (30,051) Reclassed Salary to Community
Development
505.85 Employer's Contribution
Medicare (37.48%) (3,454) Reclassed Salary to Community
Development
510.06 Per Diem Allowance (80.00%) (400) Reduced based on usage
510.08 Reception & Community
Affairs 76.47% 650 Increased based on historical usage
510.16 Printing (20.00%) (100) New contracted price
510.21 IT Internal Svc
Contribution (44.08%) (16,139) Recalibrated cost basis
545.01 Vehicles Central Garage
Internal Svc (69.33%) (2,634) Recalibrated cost basis
580.10 Consultant Fees 166.67% 25,000 Outsourced communications function
555.10 Office and Other
Equipment (100.00%) (3,647) Reduced based on usage
912,395
718,489 738,902
Total
Office of the Village Manager
2015 Actual 2016 Est Actual 2017 Budget
99
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 15 - Office of the Village Manager
10 - Salaries
500.05 Full Time 486,485 593,223 396,834 422,014 392,000
500.10 Part Time 46,243 189 - - 40,000
500.35 Overtime 2,327 - - - -
500.40 Longevity 1,000 400 500 400 600
10 - Salaries 536,057 593,812 397,334 422,414 432,600
Percent Change 2017 vs. 2016 Budget 8.88%
15 - Taxes and Benefits
505.05 Group & Medical Life 73,246 75,747 63,000 60,000 59,811
505.10 Professional Training 5,794 7,091 6,500 7,000 7,000
505.15 Dues & Memberships 6,977 8,984 8,000 4,000 4,000
505.75 Employer's Contribution - FICA 27,890 29,970 18,386 20,601 21,171
505.80 Employer's Contribution - IMRF 78,201 78,474 55,110 56,376 60,087
505.85 Employer's Contribution Medicare 7,762 8,604 5,761 6,101 6,273
15 - Taxes and Benefits 199,873 208,873 156,757 154,078 158,342
Percent Change 2017 vs. 2016 Budget 1.01%
25 - Operating Expenses
510.02 Telephone 3,556 2,036 2,250 1,900 -
510.04 Travel 2,227 4,285 1,200 1,500 1,500
510.06 Per Diem Allowance 26 56 100 - -
510.08 Reception & Community Affairs 2,213 1,868 1,500 634 1,500
510.10 Maintenance Contracts 19,424 - - - -
510.14 Subscriptions & Publications 1,536 759 1,550 1,550 1,550
510.16 Printing - 274.75 400 - 400
510.18 Village Newsletter 23,349 19,446 33,000 33,000 33,000
510.21 IT Internal Svc Contribution - 31,816 20,474 18,326 20,934
510.40 Supplies - Office 710 1,339 2,000 1,000 1,500
535.01 Facilities Building Mnt Internal Svc Cntrb - 22,325 26,289 25,948 27,552
545.01 Vehicles Central Garage Internal Svc - 2,836 1,165 971 1,169
25 - Operating Expenses 53,043 87,045 89,928 84,829 89,105
Percent Change 2017 vs. 2016 Budget -0.92%
30 - Contractual Services
515.05 Premium 1,023 1,023 1,023 1,048 1,070
515.10 Unemployment Insurance 800 800 800 - 800
515.15 Deductible - Worker's Comp - - 219 - 219
515.20 Deductible - Non Wrker's Co - 2,190 146 - 146
30 - Contractual Services 1,823 4,013 2,188 1,048 2,235
Percent Change 2017 vs. 2016 Budget 2.15%
40 - Repairs and Maintenance
550.05 Other Department Equipment - - 500 - 500
40 - Repairs and Maintenance - - 500 - 500
Percent Change 2017 vs. 2016 Budget -3.39%
50 - Other Expenses
580.05 All Other Expenses 1,279 230 1,800 1,500 1,500
580.10 Consultant Fees 4,113 11,800 40,000 48,000 48,000
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
50 - Other Expenses 5,392 12,030 41,800 49,500 49,500
Percent Change 2017 vs. 2016 Budget 18.42%
55 - Capital Outlay
555.10 Office and Other Equipment 43,767 - - - -
555.40 Reserve for Technology 43,054 1,250 1,250 1,250 1,250
555.50 Reserve for Buildings 5,370 5,370 5,370 5,370 5,370
Account Classification Total: 55 - Capital Outlay 92,191 6,620 6,620 6,620 6,620
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 15 - Office of the Village Manager 888,381 912,394 695,127 718,489 738,902
Percent Change 2017 vs. 2016 Budget 6.30%
101
Finance Department
The Finance Department is established to provide the Village with a wide range of
financial, analytical, and administrative support.
The Finance Department is committed to serving
the needs of customers by providing excellent
customer service through sound financial
management and professionalism. The
department functions in a broad staff support
environment, assisting departments at different
levels.
Various programs have been established to
account for all Village financial transactions. The
procedures are articulated in the Village’s
Investment Policy and Procedures. The adopted
Purchasing Policy is affirmed as part of the
Village’s annual audit process as well as the
preparation of the Comprehensive Annual
Financial Report.
Finance Functions
1. Payroll and human resource support
(including health insurance
administration)
2. Financial administration, planning,
analysis and budgeting
3. General services and license
administration
4. Utility billing
5. Debt collection coordination
6. Bookkeeping, accounting and auditing
7. Electronic payment management
8. Statutory administrative services
9. Centralized purchasing
Comprehensive Annual Financial Report
Each summer, the Finance Department publishes a report
outlining revenues and expenditures from the previous
fiscal year. This report includes information about the
Village’s financial condition and fiscal activities.
The report is presented in accordance with the generally
accepted accounting principles (GAAP) outlined by the
Government Finance Officers Association.
Budget
Each winter, the Village Board of Trustees approves the
budget document for the following year. The document is
compiled by the Finance Department with input from all
levels of government in Buffalo Grove.
102
Department Structure
Director of Finance/Treasurer
Purchasing Manager Deputy
Finance Director
Utility Billing
Financial Reporting
Licensing
Acccounts Payable
Payroll
103
2017 Staffing Summary
Service Level Expectations
One of the goals listed in the Village Board approved strategic plan is to analyze all of the Village’s services to
determine the current service level and the resources necessary to continue the service at the current level. The
goal is to create a “catalog” of services that will highlight the costs associated with the services that the Village
provides which will also be key indicators to evaluate as the Village transitions to a program based budget.
OVM/Finance Current Service Level Revenue Expense Total Cost
Business License Issued Annually $100,000 $14,392 -$85,608
Water Billing - Residential Billed Bi-Monthly $0 $91,800 $91,800
Water Billing - Commercial Billed Monthly $0 $23,600 $23,600
Budget Summary
Finance and General Services
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 660,737 746,627 770,849
Personal Benefits 232,896 346,550 351,759
Operating Expenses 204,800 215,814 221,635
Contractual Services 2,263 15,867 1,918
Other Services 27,625 30,000 30,000
Repair & Maintenance - - 2,000
Other Expenses 44,531 25,500 32,000
Capital Outlay 8,660 8,660 8,660
Total 1,181,512 1,389,018 1,418,821
Finance & General Services FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Accountant 1 0 1 0 1 0
Deputy Clerk 0 0 .5 0 .5 0
Deputy Finance Director 1 0 1 0 1 0
Cashier 0 0 .5 0 .5 0
Clerk II 2 0 2 0 2 0
Clerk III 1 0 1 0 1 0
Director of Finance/Treasurer 1 0 1 0 1 0
Payroll Clerk III 1 0 1 0 1 0
Purchasing Manager 1 0 1 0 1 0
Total 8 0 9 0 9 0
Full & Part-Time Total 10 9 9
104
Budget Variances
Finance and General Services
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
500.35 Overtime -13.33% (600) Reduction based on historical usage.
500.40 Longevity 18.75% 600 Increase for anniversaries.
505.15 Dues & Memberships 43.88% 610 Additional Memberships Director and
Deputy Director for ILCMA.
505.75 Employer's Contribution -
FICA 11.30% 4,595 Salary and benefit increase. This includes
COLA and Pay for Performance.
505.80 Employer's Contribution -
IMRF 11.29% 10,888 Salary and benefit increase. This includes
COLA and Pay for Performance.
505.85 Employer's Contribution
Medicare 11.12% 1,122 Salary and benefit increase. This includes
COLA and Pay for Performance.
510.02 Telephone -100% (10,000) Telephone moved to Internal Service Fund
(IT).
510.03 Postage -14.29% (10,000) Water meter project mailings completed.
510.04 Travel 40% 1,000 GFOA Conference for Deputy Director.
510.06 Per Diem Allowance -50% (250) Added to Travel line item.
510.08 Reception & Community
Affairs 25% 100 Employee appreciation week contribution.
510.10 Maintenance Contracts -20% (2,000) Copier Maintenance Contract in Internal
Service Fund.
510.40 Supplies -Office -13.33% (1,000) Reduce supply orders.
525.10 Buffalo Grove Days -14.29% (5,000) Expenditure outlay less from site change.
1,181,512
1,389,018 1,418,821
Total
Finance
2015 Actual 2016 Est Actual 2017 Budget
105
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 30 - Finance 10 - Salaries
500.05 Full Time 618,409 649,479 723,863 736,727 758,649
500.10 Part Time 579 - - - -
500.25 Elected Officials 6,000 6,000 6,000 6,000 6,000
500.35 Overtime 8,386 2,057 4,500 1,700 3,900
500.40 Longevity 4,200 3,200 3,200 3,200 3,800
10 – Salaries 637,575 660,737 737,563 747,627 772,349
Percent Change 2017 vs. 2016 Budget 4.72%
15 - Taxes and Benefits
505.05 Group & Medical Life 127,891 87,398 189,000 185,000 179,433
505.10 Professional Training 2,498 7,706 7,500 5,500 7,500
505.15 Dues & Memberships 1,880 1,987 1,390 1,390 2,000
505.75 Employer's Contribution -
FICA 37,406 38,267 40,660 43,812 45,255
505.80 Employer's Contribution -
IMRF 87,232 87,958 96,475 100,024 107,363
505.85 Employer's Contribution
Medicare 9,226 9,576 10,086 10,824 11,208
15 - Taxes and Benefits 266,134 232,895 345,111 346,550 352,759
Percent Change 2017 vs. 2016 Budget 2.22%
25 - Operating Expenses
510 Operating Expenses - 104 - - -
510.02 Telephone 7,742 3,456 10,000 3,200 -
510.03 Postage 62,077 63,306 70,000 60,000 60,000
510.04 Travel 2,805 2,179 2,500 2,500 3,500
510.06 Per Diem Allowance 147 152 500 - 250
510.08 Reception & Comm. Affairs 680 380 400 400 500
510.10 Maintenance Contracts 60,814 1,563 10,000 8,000 8,000
510.12 Equipment Rental 3,267 2,450 3,468 3,468 3,468
510.14 Subscriptions & Publications 55 - 150 150 150
510.16 Printing 14,906 11,346 5,000 10,000 5,000
510.21 IT Internal Svc Contribution - 36,361 55,379 49,570 56,712
510.28 Audit Fees 36,225 49,580 42,400 42,400 42,400
510.40 Supplies - Office 7,642 8,403 7,500 5,500 6,500
535.01 Build Mnt Internal Svc Cntrb - 25,514 30,044 29,655 31,486
545.01 Central Garage Internal Svc - - 1,165 971 1,169
25 - Operating Expenses 196,364 204,799 238,506 215,814 219,135
Percent Change 2017 vs. 2016 Budget -8.12%
106
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
30 - Contractual Services
515.05 Insurance Premium 1,367 1,367 1,367 5,867 1,430
515.15 Deductible - Worker's Comp - - 293 - 293
515.20 Deductible - Non Wrker's Co - 896 195 10,000 195
30 - Contractual Services 1,367 2,263 1,855 15,867 1,918
Percent Change 2017 vs. 2016 Budget 3.40%
35 - Other Services
525.10 Buffalo Grove Days 49,802 27,625 35,000 30,000 30,000
35 - Other Services 49,802 27,625 35,000 30,000 30,000
Percent Change 2017 vs. 2016 Budget -14.29%
40 - Repairs and Maintenance
550.05 Other Department
Equipment 613 - 2,000 - 2,000
40 - Repairs and Maintenance 613 0 2,000 0 2,000
Percent Change 2017 vs. 2016 Budget 0%
50 - Other Expenses
580 All Other Expense - 110 - - -
580.05 All Other Expenses 3,486 17,819 13,000 5,500 12,000
580.10 Consultant Fees 25,443 26,002 20,000 20,000 20,000
580.40 Investment Fees - 597 - - -
50 - Other Expenses 28,929 44,530 33,000 25,500 32,000
Percent Change 2017 vs. 2016 Budget -3.03%
55 - Capital Outlay
555.40 Reserve for Technology 1,500 1,500 1,500 1,500 1,500
555.50 Reserve for Buildings 7,160 7,160 7,160 7,160 7,160
55 - Capital Outlay 8,660 8,66 8,660 8,660 8,660
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 30 - Finance 1,189,447 1,181,512 1,401,695 1,390,018 1,418,821
Percent Change 2017 vs. 2016 Budget 1.22%
107
Human Resources Department
The Department of Human Resources is responsible for a hiring, recruitment,
staffing, retention, and training of Village of Buffalo Grove employees.
The Human Resources Division is structured to provide
support to all Village departments, including but not
limited to recruitment, selection, training, promotion
and retention of quality employees; compensation and
benefit program administration; employee and labor
relations; collective bargaining negotiation and
management of current labor agreement(s);
administration of the pay for performance system; policy
administration and interpretation, assisting employees
and management staff with day-to-day human resources
issues; employee recognition programs; staff liaison to
the Board of Fire and Police Commissioners; appointed
member of the Fire Pension Board and delegate to
Intergovernmental Personnel Benefits Cooperative
(IPBC).
Additionally, payroll support is provided to the Finance
Department by Human Resources. This includes, but is
not limited to, bi-weekly reporting to the International
City/County Management Association Retirement
Corporation (ICMA/RC) 457 Deferred Compensation Plan,
Payroll deduction Roth IRA, and VantageCare Retiree
Health Savings (RHS) Plan.
The Board of Police and Fire
Commissioners
The Village’s Human Resources Department is
joined by the Board of Police and Fire
Commissioners in hiring for Buffalo Grove public
safety positions. The Board meets once each
month and has five members. Other
responsibilities of the Board of Police and Fire
Commissioners include:
• Testing and hiring of Police Officers and
Firefighter / Paramedics
• Testing and promotion of Police
Lieutenants, Police Sergeants, and Fire
Lieutenants
Department Structure
Human Resources
Risk Management Employee Benefits and
Compensation Labor/Employee Relations
109
2016 Staffing Summary
There are no staffing changes for 2017.
Human Resources FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Director of Human Resources 1 0 1 0 1 0
Management Analyst 1 0 1 0 1 0
Total 2 0 2 0 2 0
Full & Part-Time Total 2 2 2
Service Level Expectations
One of the goals listed in the Village Board approved strategic plan is to analyze all of the Village’s services to
determine the current service level and the resources necessary to continue the service at the current level. The
goal is to create a “catalog” of services that will highlight the costs associated with the services that the Village
provides which will also be key indicators to evaluate as the Village transitions to a program based budget.
OVM/Finance Current Service Level Revenue Expense Total Cost
Onboarding/Non-Sworn 45 Days $0 $2,475 $2,475
Onboarding/Hiring BFPC 90 Days (Candidate From List) $0 $6,186 $6,186
Budget Summary
Human Resources
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 191,534 205,718 331,681
141,018 146,181 181,202
Operating Expenses 27,724 35,696 45,836
Contractual Services 41,627 41,201 76,790
Other Services 19,454 31,930 32,000
Repair & Maintenance - - -
Other Expenses 545 1,500 1,500
Capital Outlay 20,556 12,745 1,045
Total 442,457 474,971 670,054
110
Budget Variances
Human Resources
Line Item
Number Description Percent
Change
Amount
Change Description of Change
510.02 Telephone -100% (1,000) Moved to Internal Service Fund (IT).
510.04 Travel 25% 500 NPELRA, IPELRA, travel to offsite
meetings.
510.14 Subscriptions & Publications -33.33% (1,000) Reduced based on historical trend.
510.21 IT Internal Svc Contribution -13.86% (2,000) Increase in contribution percentage.
510.22 Recruitment Charges -25% (2,500) Recruitment activities to be less costly.
510.24 CDL Testing 60% 1,200 Ongoing Employee (CDL holder)
Screening.
510.40 Supplies - Office -25% (250) Reduced based on historical trend.
555.10 Office and Other Equipment -100% (11,700) FY16 projects complete.
The dollars allocated for the Pay for Performance program are included in the Human Resources departmental
budget. At the time that Pay for Performance dollars are awarded to employees the amount of the award is
reflected in the individual department budgets resulting, in some departments, the salary expenditures to exceed
budget.
442,457 474,971
670,054
Total
Human Resources
2015 Actual 2016 Est Actual 2017 Budget
111
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 35 - Human Resources 10 - Salaries
500.05 Full Time 130,593 190,733 325,426 204,918 330,881
500.40 Longevity 800 800 800 800 800
10 - Salaries 131,393 191,533 326,226 205,718 331,681
Percent Change 2017 vs. 2016 Budget 1.67%
15 - Taxes and Benefits
505.05 Group & Medical Life 63,612 38,962 42,000 42,000 39,874
505.10 Professional Training 2,804 2,009 11,600 2,282 11,600
505.15 Dues & Memberships 1,134 819 1,600 1,600 1,600
505.40 Tuition Reimbursement 8,041 52,844 50,000 50,000 50,000
505.50 Employee Recognition 7,128 7,450 8,000 7,946 8,000
505.75 Employer's Contribution - FICA 7,566 10,742 19,208 11,755 19,247
505.80 Employer's Contribution - IMRF 21,667 25,429 45,248 27,610 46,071
505.85 Employer's Contribution Medicare 1,893 2,761 4,730 2,988 4,810
15 - Taxes and Benefits 113,847 141,018 182,386 146,181 181,202
Percent Change 2017 vs. 2016 Budget -0.65%
25 - Operating Expenses
510.02 Telephone 1,680 542 1,000 500 -
510.04 Travel 2,516 1,885 2,000 2,300 2,500
510.06 Per Diem Allowance 200 400 400 400 400
510.10 Maintenance Contracts - - 8,500 - 8,000
510.14 Subscriptions & Publications 1,039 1,509 3,000 1,920 2,000
510.21 IT Internal Svc Contribution - 9,090 14,431 12,917 12,431
510.22 Recruitment Charges 16,537 5,700 10,000 5,633 7,500
510.24 CDL Testing 2,408 1,797 2,000 3,176 3,200
510.40 Supplies - Office 38 419 1,000 465 750
535.01 Facilities Building Mnt Internal Svc Cntrb - 6,378 7,511 7,414 7,886
545.01 Vehicles Central Garage Internal Svc - - 1,165 971 1,169
25 - Operating Expenses 24,420 27,723 51,007 35,696 45,836
Percent Change 2017 vs. 2016 Budget -10.14%
30 - Contractual Services
515.05 Premium 8,731 1,410 1,411 3,541 1,476
515.10 Unemployment Insurance 160 1,205 160 160 160
515.15 Worker's Comp - - 92 - 92
515.20 Non Wrker's Co - 5,399 62 - 62
520.40 Special Counsel 47,302 33,610 75,000 37,500 75,000
30 - Contractual Services 56,193 41,626 76,725 41,201 76,790
Percent Change 2017 vs. 2016 Budget 0.08%
112
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
525.15 Fire and Police Commission 30,166 19,454 30,000 31,930 32,000
35 - Other Services 30,166 19,454 30,000 31,930 32,000
Percent Change 2017 vs. 2016 Budget 6.67%
50 - Other Expenses
580.05 All Other Expenses 535 544 1,500 1,500 1,500
580.65 IRMA Deductible - Worker's Comp 22,137 - - - -
580.66 IRMA Deductible - Non Wrkr's Cmp 8,284 - - - -
50 - Other Expenses 30,957 544 1,500 1,500 1,500
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment 15,714 19,510 11,700 11,700 -
555.40 Reserve for Technology 150 150 150 150 150
555.50 Reserve for Buildings 895 894.96 895 895 895
55 - Capital Outlay 16,759 20,555 12,745 12,745 1,045
Percent Change 2017 vs. 2016 Budget -91.80%
Department Total: 35 - Human Resources 403,738 442,457 680,589 474,971 670,054
Percent Change 2017 vs. 2016 Budget -1.55%
113
35 - Other Services
Budget Summary
Legal
2015 Actual 2016 Est Actual 2017 Budget
Operating Expenses 679 - -
Contractual Services 326,598 349,980 409,850
Total 327,277 349,980 409,850
Budget Variances
Legal
Line Item
Number Description Percent
Change
Amount
Change Description of Change
520.15 Attorney's Fees 48.03% 73,000 Increase due to the proposed rate of
$225/hr by Treslser.
520.25 Legal Notices 19% 1,900 Increase Due to Economic
Development Activities
520.40 Special Counsel 4000% 40,000 Collective Bargaining in 2017
520.45 Legal Reimburseables -81.82% (4,500) Reduced based on historical trend.
327,277 349,980
409,850
Total
Legal
2015 Actual 2016 Est Actual 2017 Budget
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 20 - Legal
25 - Operating Expenses
510.21 IT Internal Svc Contribution - 679 - - -
25 - Operating Expenses - $679 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
30 - Contractual Services
520.05 Retainer Fee 49,999 49,999 50,000 50,000 50,400
520.10 Prosecutor Fee 69,260 71,450 68,000 70,600 68,000
520.15 Attorney's Fees 190,472 167,885 152,000 200,000 225,000
520.20 Recording Fees 333 225 200 400 200
520.25 Legal Notices 8,392 9,308 10,000 11,850 11,900
520.30 Litigation Reserve 6,580 25,152 12,000 17,130 12,000
520.35 Messenger Fees - - 350 - 350
520.40 Special Counsel - 2,250 1,000 - 41,000
520.45 Legal Reimburseables 891 325.77 5,500 - 1,000
30 - Contractual Services 325,928 326,597 299,050 349,980 409,850
Percent Change 2017 vs. 2016 Budget 37.05%
Department Total: 20 - Legal 325,928 327,277 299,050 349,980 409,850
Percent Change 2017 vs. 2016 Budget 37.05%
Fire Department/Emergency Management Agency
The Buffalo Grove Fire Department is a full service fire department providing the
community with Suppression, Emergency Medical Services, Technical Rescue, and
Emergency Management Agency support.
The Buffalo Grove Fire Department’s Mission is to
“Provide professional services with Commitment,
Loyalty, Integrity, and Pride.” The Values Statement
of this organization is to meet the mission of the
organization through “Service, Adaptability, Fairness,
Empowerment, and Respect” with a Vision Statement
of “The Buffalo Grove Fire Department will aspire to
be the premier emergency service provider, delivering
exceptional service and value to our community”.
The Department operates 24 hours a day, 365 days a
year. There are a total of 57 full time sworn
members, 2 full time civilian and 2 part time members
operating out of three strategically located fire
stations, one with administrative offices. The fire
department provides a wide variety of services
including fire suppression, Emergency Medical
Services (EMS), technical rescue services including
above and below grade rescue and high angle rescue,
underwater rescue and recovery, hazardous materials
response and Emergency Management Agency
functions. The department also investigates all fires
in the Village. In 2015, The Fire Department
responded to 4,842 calls for service of which 3,060
were EMS (63.2%) and 1,782 were fire, rescue and
service related (36.8%). These percentages have
remained constant over the last ten years.
The Department continues its focus on public
education, conducting an Open House, participating
in Buffalo Grove Days and other Village wide events.
In addition to these programs, the members of the
Buffalo Grove Fire Department conducted school
drills and attended many block parties and special
events throughout the year.
The coordination of the many Emergency Manage‐
ment Agency functions including MobileComm and
CERT are now the responsibility of the Fire
Department.
Department Structure
Fire Chief/ EMA
Director
Emergency
Management
Agency
Deputy Fire Chief
Admin/Ops
Fire Inspector Battalion
Chief EMS/ Safety
Battalion Chief Black
Shift
Three Lieutenants
14 FF/PM
Battalion Chief Red
Shift
Three Lieutenants
14 FF/PM
Battalion Chief Gold
Shift
Three Lieutenants
14 FF/PM
Administrative
Assistant
117
2017 Staffing Summary
Service Level Expectations
One of the goals listed in the Village Board approved strategic plan is to analyze all of the Village’s services to
determine the current service level and the resources necessary to continue the service at the current level. The
goal is to create a “catalog” of services that will highlight the costs associated with the services that the Village
provides which will also be key indicators to evaluate as the Village transitions to a program based budget.
Fire Current Service Level Revenue Expense Total Cost
Fire Plan Review for Permits Review Completed in 10 Days $8,600 $12,290 $3,690
Annual Life Safety Inspections Inspection Completed Every 18 Months $0 $59,845 $59,845
Fire Response Less than 6 Minutes 90% of the Time $6,302 $1,284,131 $1,277,829
EMS Response Less than 6 Minutes 90% of the Time $919,565 $1,250,642 $331,077
Budget Summary
Fire Services
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 6,406,972 6,620,984 6,611,597
Personal Benefits 3,319,787 3,644,086 3,300,916
1,599,276 1,358,105 1,514,811
Contractual Services 250,884 250,386 285,294
Repair & Maintenance 14,269 91,013 50,900
Commodities 19,179 25,000 31,480
Other Expenses 41,440 56,200 79,865
Capital Outlay 273,071 214,795 215,295
Total 11,924,877 12,260,569 12,090,158
Fire Services FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Battalion Chief 4 0 4 0 4 0
Deputy Fire Chief 1 0 1 0 1 0
EMA Coordinator 0 1 0 1 0 1
Fire Chief 1 0 1 0 1 0
Fire Inspector 1 0 1 0 1 0
Fire Inspector/Public Education Officer 0 1 0 1 0 1
Fire Lieutenant 9 0 9 0 9 0
Firefighter/Paramedic 42 0 42 0 42 0
Administrative Assistant 1 0 1 0 1 0
Total 59 2 59 2 59 2
Full & Part-Time Total 61 61 61
118
Budget Variance
Fire Services
Line
Item
Number
Description Percent
Change
Amount
Change Description of Change
500.10 Part Time -10.88% (6,025) 5 year expenditure trend indicates a reduction is
warranted.
500.35 Overtime 33.33% 200,000 Current and future vacancies will create
additional OT funds to maintain staffing levels.
505.10 Professional Training -20.05% (7,500) 5 year expenditure trend indicates a reduction is
warranted.
505.15 Dues & Memberships -14.14% (1,660) 5 year expenditure trend indicates a reduction is
warranted.
505.20 Clothing Allowance 15.38% 4,800 Known and anticipated retirements require new
uniform issue to replacement personnel.
505.35 Safety Equipment 14.35% 7,180
Known and anticipated retirements require new
protective equipment issue to replacement
personnel.
505.61 Pension Payment - Fire -14.35% (311,958) Amount budgeted based on actuarial evaluation
505.80 Employer's Contribution
- IMRF -11.93% (2,949) Less hours budgeted for IMRF eligible employees.
510.02 Telephone -100% (25,100) All Telephone Expenditures moved to Internal
Service Fund (IT).
510.10 Maintenance Contracts -13.86% (12,750) 5 year expenditure trend indicates a reduction is
warranted.
510.14 Subscriptions &
Publications -24.39% (1,500) 5 year expenditure trend indicates a reduction is
warranted.
510.16 Printing 40% 600 New business inspection program will begin in
2017.
510.59 SCBA Equipment -100% (25,336) Payout of Village grant portion completed
515.10 Unemployment
Insurance -19.35% (2,400) Reduction based on estimated experience.
580.11 Contractual Services 58.47% 16,000
Increase is for the Village’s portion of the
recently added NWCD Joint Emergency
Management Coordinator subscription.
580.20 CAFT Site 100% 5,000 Annual maintenance fees increase, first since
CAFT inception.
120
11,924,877
12,260,569
12,090,158
Total
Fire
2015 Actual 2016 Est Actual 2017 Budget
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 40 - Fire 10 - Salaries
500.05 Full Time 321,028 144,482 147,865 155,698 152,754
500.10 Part Time 40,900 47,015 55,372 49,508 49,347
500.20 Sworn 5,295,789 5,365,733 5,513,944 5,527,778 5,571,496
500.30 Special Duty (11,106) (12,273) - - -
500.35 Overtime 729,430 821,812 600,000 850,000 800,000
500.40 Longevity 35,200 40,200 38,000 38,000 38,000
10 – Salaries 6,411,242 6,406,971 6,355,181 6,620,984 6,611,597
Percent Change 2017 vs. 2016 Budget 4.03%
15 - Taxes and Benefits
505.05 Group & Medical Life 1,167,220 1,079,964 1,239,000 1,230,000 1,176,283
505.10 Professional Training 27,452 3,641 37,400 20,000 29,900
505.15 Dues & Memberships 7,253 8,377 11,740 9,000 10,080
505.20 Clothing Allowance 23,000 25,172 31,200 28,000 36,000
505.35 Safety Equipment 18,593 32,002 50,020 50,000 57,200
505.61 Pension Payment - Fire 2,166,471 2,047,858 2,174,632 2,174,632 1,862,674
505.75 FICA 22,309 11,852 12,601 12,713 12,778
505.80 IMRF 20,933 19,667 24,722 24,722 21,773
505.85 Medicare 91,509 91,248 92,151 95,019 94,228
15 - Taxes and Benefits 3,544,745 3,319,787 3,673,466 3,644,086 3,300,916
Percent Change 2017 vs. 2016 Budget -10.14%
25 - Operating Expenses
510.02 Telephone 33,148 17,418 25,100 16,000 -
510.04 Travel 2,529 3,356 4,700 3,500 4,700
510.06 Per Diem Allowance 556 1,357 2,900 1,500 2,900
510.08 Reception &
Community Affairs 64.93 52 100 100 100
510.10 Maintenance
Contracts 87,952 70,150 92,000 70,000 79,250
510.12 Equipment Rental - - - 700 -
510.14 Subscriptions &
Publications 1,351 1,912 6,150 2,500 4,650
510.16 Printing 1,073 1,472 1,500 1,400 2,100
510.21 IT Internal Svc
Contribution - 256,578 352,581 315,596 384,061
510.40 Office 5,902 7,510 5,200 4,500 5,200
510.50 All Other 16,413 12,670 16,000 14,000 14,800
510.55 Department 95,823 111,143 90,950 85,000 85,950
510.59 SCBA Equipment - 272,640 25,336 - -
121
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
510.65 Northwest Central
Dispatch 148,257 157,432 160,000 160,000 165,800
535.01 Facilities Building Mnt
Internal Svc Cntrb - 268,213 261,652 313,364 286,862
545.01 Vehicles Central Garage
Internal Svc - 417,365 444,027 369,945 478,438
25 - Operating Expenses 393,073 1,599,275 1,488,196 1,358,105 1,514,811
Percent Change 2017 vs. 2016 Budget 1.79%
30 - Contractual Services
515.05 Insurance Premium 215,386 215,386 215,386 215,386 225,294
515.10 Unemployment
Insurance 12,400 12,399 12,400 - 10,000
515.15 Worker's Comp (19,591) 23,098 35,000 35,000 35,000
515.20 Non Wrker's Co 6,360 - 15,000 - 15,000
30 - Contractual Services 214,555 250,884 277,786 250,386 285,294
Percent Change 2017 vs. 2016 Budget 2.70%
40 - Repairs and Maintenance
535.20 Facilities Buildings &
Facilities 45,183 - 35,000 77,003 35,000
545.15 Vehicles Automotive
Parts 509 - - 10 -
545.40 Vehicles Contract Auto
Services 5,265 - - - -
550.05 Other Department
Equipment 15,928 14,268 17,200 14,000 15,900
40 - Repairs and Maintenance 66,888 14,268 52,200 91,013 50,900
Percent Change 2017 vs. 2016 Budget -2.49%
45 - Commodities
530.50 Small Equipment Tools
& Hardware 25,110 19,179 32,525 25,000 31,480
45 - Commodities 25,110 19,179 32,525 25,000 31,480
Percent Change 2017 vs. 2016 Budget -3.21%
50 - Other Expenses
580.05 All Other Expenses (22,035) 2,272 6,500 5,500 6,500
580.11 Contractual Services 8,154 27,701 27,365 27,000 43,365
580.20 CAFT Site (5,789) (7,278) 5,000 5,000 10,000
580.21 NWCH Admin Fee 18,008 18,744 18,900 18,700 20,000
50 - Other Expenses (1,662) 41,440 57,765 56,200 79,865
Percent Change 2017 vs. 2016 Budget 38.26%
55 - Capital Outlay
555.00 Capital Equipment - 55,126 - - -
555.10 Office and Other Equip - 632 4,000 3,500 4,000
555.30 Reserve for Capital
Replacement 135,000 138,061 135,000 135,000 135,000
122
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
555.40 Reserve for Technology 18,200 21,424 18,200 18,200 18,200
555.50 Reserve for Buildings 54,595 54,594 54,595 54,595 54,595
560.10 Land Improvements - 2,423 2,500 2,500 2,500
560.30 Buildings & Structures - 807 1,000 1,000 1,000
55 - Capital Outlay 207,795 273,070 215,295 214,795 215,295
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 40 - Fire 10,861,747 11,924,877 12,152,414 12,260,569 12,090,158
Percent Change 2017 vs. 2016 Budget -0.51%
123
Police Department
The Buffalo Grove Police Department exists to promote public safety; its mission
is to serve the community with pride, professionalism, and integrity.
The Buffalo Grove Police Department is currently
staffed by 63 sworn and 19 civilian personnel,
providing law enforcement services to a community
of 41,778 residents.
The police department is led by a Chief of Police and
two Deputy Chiefs and is structured into the
following sections:
Administration Division
The Administration Division is led by a Deputy Chief
and includes a Commander, Lieutenant,
Administrative Services Sergeant, Traffic Unit, Crime
Prevention Officer, School Resource Officers,
Records Section, Technical Services Administrator,
and an Evidence/Property Custodian.
Operations Division
The Operations Division is led by a Deputy Chief and
is divided into two areas; Patrol and Investigations.
The Patrol Unit has three Patrol Watches, each
supervised by one Lieutenant and two Sergeants.
This section also includes two Community Service
Officers (CSO), two full-time Desk Officers, two part-
time Desk Officers and a full-time Police Social
Worker (all civilian).
The Investigations Unit is led by a Commander and
includes the Investigations & Youth Section, which is
comprised of two Adult Crimes Investigators, two
Juvenile Crimes Investigators, one Investigator
assigned to the Drug Enforcement Agency Task Force
and one Investigator assigned to the Homeland
Security Department – Immigrations and Customs
Enforcement Task Force.
124
Chief of Police
Administration
Deputy Chief
Administrative
Services Lieutenant
Adminstrative
Services Sergeant
School Resource
Officers
Technical Services
Staff Support
Commander
Traffic Unit
Crime Prevention
Records
Evidence and
Property
Operations
Deputy Chief
Day Watch
Police Social
Worker
Night Watch Evening Watch
Directed Patrol
Unit
K-9 Unit
Investigations
Commander
Criminal
Investigators
Juvenile
Operations
Task Forces
Department Structure
125
2017 Staffing Summary
In 2017, the department will continue to evaluate calls for service and Officer Daily Activity Report data to
establish proper distribution of officer staffing on each patrol watch. Current staffing is sufficient to properly
deploy officers on each watch and will be maintained if retirements occur. The only expected change for 2017 is
moving the Police Social Worker to full time status.
Police Services FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Chief of Police 1 0 1 0 1 0
Clerk 2 1 2 1 2 1
Community Service Officer*** 3 0 2 0 2 0
Crossing Guard 0 9 0 9 0 9
Deputy Police Chief 1 0 2 0 2 0
Desk Officer** 2 3 3 2 3 2
Evidence Custodian 0 1 0 1 1 0
Lieutenant 3 0 4 0 4 0
Patrol Officer 48 0 47 0 46 0
Police Commander 3 0 2 0 2 0
Police Sergeant 8 0 8 0 8 0
Records Supervisor 1 0 1 0 1 0
Social Worker* 0 0 0 1 1 0
Technical Services Administrator 1 0 1 0 1 0
Administrative Assistant 1 0 1 0 1 0
Total 74 14 75 13 74 12
Full & Part-Time Total 88 88 87
*Social Worker Not Included in 2016 Budget
**1 Desk Officer moved to full-time in 2016.
***PT CSO Left Open
Service Level Expectations
One of the goals listed in the Village Board approved strategic plan is to analyze all of the Village’s services to
determine the current service level and the resources necessary to continue the service at the current level. The
goal is to create a “catalog” of services that will highlight the costs associated with the services that the Village
provides which will also be key indicators to evaluate as the Village transitions to a program based budget.
Police Current Service Level Revenue Expense Total Cost
Fingerprinting Under 30 minutes $2,580 $2,339 $240
Overweight/Truck Enforcement Weekly enforcement $151,812 $2202 ($149,609)
2017 Budget
Police Services
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 7,399,491 7,695,198 8,021,911
Taxes and Benefits 3,949,155 4,365,351 4,413,521
Operating Expenses 1,574,537 1,586,351 1,761,185
Contractual Services 332,398 373,434 423,403
Repair & Maintenance 7,661 15,900 13,900
Commodities - - -
Other Expenses 62,554 93,695 46,695
Capital Outlay 353,412 202,365 202,365
Total 13,679,208 14,332,294 14,882,980
2017 Variance
Police Services
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
500.05 Full Time 16.94% 114,388 Part-Time Employees moving to Full-Time.
500.10 Part Time -37.21% (66,998) Part-Time Employees moving to Full-Time.
505.80 Employer's
Contribution - IMRF 13.05% 13,414 Increase in employer contribution percentage per IMRF.
510.02 Telephone -100% (37,150) All Telephone Expenditures moved to Internal Service Fund
(IT).
510.04 Travel 72.07% 2,000 IACP, ILACP, Police Memorial, Springfield, Background
Investigations, Special Investigations.
510.16 Printing 30.93% 3,425
Citations (Adjudication/County), Case Jackets, Traffic
Printing (Chief's Challenge, Traffic Pamphlets, Coloring
Contests), Crime Prevention (Safety Pamphlets, Crime
Opportunity Cards, Citizen Survey), Field Directory, Patrol
Printing, FOSG Printing, Department Letterhead/Envelopes,
Mental Health/Domestic Violence Pamphlets.
510.42 Supplies - FOSG 13.13% 650
Evidence Tech Supplies, Major Crimes Task Force Supplies,
Digital Processing, Camera and Strobe Batteries,
Ribbons/Labels for Bar Coding, MOCIC, LexisNexis
Background Tool, Veri-Pic.
510.56 Patrol 26.79% 750
Traffic Unit Supplies (Car Seats, Education, Bike Rodeo,
Awards, Equipment), Lock-Jocks & Special Lock-Out Tools,
AR-15 Maintenance & Replacement.
510.66 NIPAS 24.56% 1,460 NIPAS/ILEAS Annual Memberships and Equipment.
535.01
Facilities Building
Mnt Internal Svc
Cntrb
10.78% 22,788 Increase in contribution due to increase in expenditures of
Fund.
545.01 Vehicles Central
Garage Internal Svc 21.99% 85,742 Increase in contribution based on historical usage.
550.20 Other Patrol
Equipment -38.46% (2,500) Firearm Repair/Parts, Range Maintenance, Breathalyzers,
Portable Breath Testers, Equipment Maintenance & Repair.
580.11 Contractual
Services -100% (40,000) Part-Time Employees moving to Full-Time.
580.15 Committee on
Accreditation 30.77% 2,000 Accreditation Fees and Supplies, CALEA Conference.
580.55 Records
Management -35.51% (9,000) Coplogic On-Line Reporting Annual Fee, ID Networks
RMS/Livescan Maintenance.
129
13,679,208
14,332,294
14,882,980
Total
Police
2015 Actual 2016 Est Actual 2017 Budget
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund
Department: 45 - Police
10 - Salaries
500.05 Full Time 678,423 581,515 675,133 688,772 789,521
500.10 Part Time 212,968 212,892 180,044 155,826 113,046
500.20 Sworn 6,034,917 6,271,101 6,577,986 6,500,000 6,767,544
500.30 Special Duty (4,686) - - - -
500.35 Overtime 327,483 284,380 300,000 300,000 300,000
500.40 Longevity 47,400 49,600 50,600 50,600 51,800
10 – Salaries 7,296,505 7,399,490 7,783,763 7,695,198 8,021,911
Percent Change 2017 vs. 2016 Budget 3.06%
15 - Taxes and Benefits
505.05 Group & Medical Life 1,248,733 1,176,389 1,597,027 1,595,000 1,524,302
505.10 Professional Training 39,745 44,433 52,284 52,284 52,400
505.15 Dues & Memberships 2,476 2,579 3,250 3,250 3,550
505.20 Clothing Allowance 26,931 32,449 6,250 6,250 6,250
505.25 Uniform Maintenance 26,256 26,064 3,000 3,000 3,000
505.30 Recruit Uniforms 3,295 3,300 3,500 3,500 3,750
505.60 Pension Payment - Police 2,082,089 2,413,137 2,440,239 2,440,239 2,538,183
505.75 Employer's Contribution – FICA 54,372 51,831 52,726 52,726 56,085
505.80 Employer's Contribution - IMRF 106,083 96,546 102,817 102,817 116,231
505.85 Employer's Contribution Medicare 100,215 102,423 106,285 106,285 109,770
15 - Taxes and Benefits 3,690,200 3,949,154 4,367,378 4,365,351 4,413,521
Percent Change 2017 vs. 2016 Budget 1.06%
25 - Operating Expenses
510.02 Telephone 43,008 33,985 37,150 37,150 -
510.04 Travel 1,816 2,447 2,775 2,775 4,775
510.06 Per Diem Allowance 1,530 1,492 1,750 1,750 1,750
510.10 Maintenance Contracts 42,169 41,148 41,148 41,148 41,148
510.14 Subscriptions & Publications 802 795 950 950 950
510.16 Printing 9,194 9,530 11,075 11,075 14,500
510.21 IT Internal Svc Contribution - 310,368 440,091 393,927 439,877
510.22 Recruitment Charges 1,457 498 500 500 500
510.26 Physical Fitness Equipment 599 4,994 5,000 5,000 5,000
510.30 Safety Equipment - Patrol 9,871 8,878 14,700 14,700 14,700
510.32 Safety Equipment - FOSG 498 446 500 500 500
510.33 Operating Equip – Staff 1,663 491 500 500 500
510.34 DUI Assessment Purchases 283 10,510 - - -
510.35 Reimburseable Expenses - 842 - - -
510.41 Supplies - Patrol 3,261 3,283 3,275 3,275 3,575
510.42 Supplies - FOSG 4,704 4,518 4,950 4,950 5,600
510.43 Supplies - Communications 1,538 1,451 2,000 2,000 2,000
510.44 Supplies - Records 6,399 9,736 8,500 8,500 8,750
510.45 Supplies - OCOP 450 445 750 750 750
510.46 Supplies - Training 8,540 12,550 14,100 14,100 14,515
510.47 Supplies - Crime Prevention 4,533 4,572 5,200 5,200 5,500
130
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
510.48 Supplies - Detention 1,181 1,085 1,200 1,200 1,200
510.55 Department 11,516 11,569 5,000 5,000 5,000
510.56 Patrol 3,236 2,930 2,800 2,800 3,550
510.57 FOSG 3,468 4,033 5,227 5,227 5,397
510.58 Communications 621 3,487 750 750 750
510.60 OCOP 164 189 750 750 750
510.61 Training 1,059 1,306 700 700 700
510.62 Detention - 98 150 150 150
510.63 Bike Patrol 1,300 590 500 500 500
510.64 Records 685 897 1,072 1,072 1,072
510.65 Northwest Central Dispatch 354,044 367,616 411,708 411,708 392,682
510.66 NIPAS 5,180 5,079 5,945 5,945 7,405
510.67 Northern IL Police Crime Lab 60,701 60,995 62,575 62,575 61,595
510.68 Animal Control 4,350 3,858 4,350 4,350 4,350
510.69 Prisoner Care 922 355 1,300 1,300 1,300
535.01 Facilities Building Mnt Internal Svc
Cntrb - 179,571 211,451 208,713 234,239
545.01 Vehicles Central Garage Internal Svc - 467,881 389,913 324,861 475,655
25 - Operating Expenses 590,757 1,574,536 1,700,305 1,586,351 1,761,185
Percent Change 2017 vs. 2016 Budget 3.58%
30 - Contractual Services
515.05 Premium 291,063 291,063 291,063 291,063 304,452
515.10 Unemployment Insurance 15,000 14,799 14,800 - 15,000
515.15 Deductible - Worker's Comp 84,538 20,036 62,371 62,371 62,371
515.20 Deductible - Non Wrker's Co 36,420 6,499 41,580 20,000 41,580
30 - Contractual Services 427,022 332,398 409,814 373,434 423,403
Percent Change 2017 vs. 2016 Budget 3.32%
40 - Repairs and Maintenance
545.05 Vehicles Gasoline 2,183 - - - -
545.40 Vehicles Contractual Auto Services 95 - - - -
550.10 Other Radios 3,366 2,419 4,760 4,500 4,750
550.15 Other Mobile Data Terminals 2,480 386 500 500 500
550.20 Other Patrol Equipment 5,050 1,440 6,500 6,500 4,000
550.25 Other F.O.S.G. Equipment 608 494 650 650 650
550.30 Other Staff Equipment 2,750 2,920 3,750 3,750 4,000
40 - Repairs and Maintenance 16,533 7,661 16,160 15,900 13,900
Percent Change 2017 vs. 2016 Budget -13.99%
50 - Other Expenses
580.05 All Other Expenses 6,263 6,838 9,650 9,650 9,650
580.11 Contractual Services 40,000 30,000 40,000 40,000 -
580.15 Committee on Accreditation 5,095 5,332 6,500 6,500 8,500
580.30 Overweight Truck Enforcement 1,731 1,585 2,200 2,200 2,200
580.55 Records Management 10,345 10,345 25,345 25,345 16,345
580.57 Police Grant Charges 2,007 8,453 10,000 10,000 10,000
50 - Other Expenses 65,443 62,554 93,695 93,695 46,695
Percent Change 2017 vs. 2016 Budget -50.16%
131
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
132
55 - Capital Outlay
555.10 Office and Other Equipment 5,749 14,697 23,450 23,450 23,450
555.20 Automobiles & Trucks - 159,800 - - -
555.30 Reserve for Capital Replacement 125,000 99,999 100,000 100,000 100,000
555.40 Reserve for Technology 33,333 9,999 10,000 10,000 10,000
555.50 Reserve for Buildings 68,915 68,915 68,915 68,915 68,915
55 - Capital Outlay 232,997 353,412 202,365 202,365 202,365
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 45 - Police 12,319,460 13,679,208 14,573,480 14,332,294 14,882,980
Percent Change 2017 vs. 2016 Budget 2.12%
Community Development Department
The Community Development Department is responsible for administering the Village’s building, zoning, and
development codes to ensure orderly development, redevelopment, and property maintenance within the
Village of Buffalo Grove. The department reviews plans,
issues permits, and performs the necessary inspections to
ensure adherence to proper construction and design codes.
The department is further responsible for health, housing,
and property maintenance inspections to protect the health
and well-being of Buffalo Grove’s residents. The Village of
Buffalo Grove Community Development Department consists
of three divisions:
• Building & Zoning
• Environmental Health
• Planning & Economic Development
Building & Zoning
The Building and Zoning Division provides for the
administration and inspection of all new
residential, commercial, and industrial
construction, existing structures, and all
businesses pursuant to Village ordinances, codes,
and applicable State Statutes. Appropriate
regulations and inspections of new and existing
buildings are necessary in order to protect the
public health, safety, and general welfare as
regulated by code and statute. Building Codes are
adopted and amended through the Buffalo Grove
Municipal Code.
Environmental Health
The Environmental Health division is responsible
for promoting public health and safety to prevent
environmental health hazards that can lead to
illness in the community. Responsibilities include
food establishment inspections, temporary food
event permitting, food establishment plan review,
food handling complaint investigation, mobile
vending licensing, and inspecting day care
centers/homes.
Planning & Economic Development
The Planning & Economic Development Division is
charged with reviewing new development and
redevelopment proposals, implementing
economic development strategies, administrating
the comprehensive plan, and preparing long-
range plans. The Planning & Economic
Development Division is responsible for oversight
of the Village’s Planning & Zoning Commission.
Projects Requiring Permits
•Home/Building Addition
•Air Conditioning (new or replacement)
•Building Demolition
•Deck
•Driveway and/or apron
•New Building
•Electrical work, including low voltage
•Interior Demolition
•Interior Remodeling
•Fence
•Fireplace
•Furnace (new or replacement)
•Garage
•Gazebo
•Generator
•Lawn Sprinkler System
•Patios and Sidewalks (new or replacement)
•Plumbing
•Roof Tear Off (no permit required to add a second
layer of shingles – maximum 2 layers)
•Shed
•Signs
•Stairs and Landings (new or replacement)
•Swimming Pool – above or below ground
•Water Heater (new or replacement)
•Windows (new or replacement)
Department Structure
Director of Community
Development
Village Planner Building Commissioner
Health Inspector
Building Inspectors
Property Maintenance
Inspectors
Plan Review
Administration/
Permit Clerks
Deputy Clerk/Permit
Technician
134
2017 Staffing Summary
In June of 2014, the customer service staffs of Community Development and Finance merged into one customer
service center located on the first floor of Village Hall. Based upon workload an additional full-time cashier
position was added to the joint customer service counter. This position is charged 0.5 FTE to Finance and 0.5 FTE
to Community Development. These changes are reflected below.
Service Level Expectations
One of the goals listed in the Village Board approved strategic plan is to analyze all of the Village’s services to
determine the current service level and the resources necessary to continue the service at the current level. The
goal is to create a “catalog” of services that will highlight the costs associated with the services that the Village
provides which will also be key indicators to evaluate as the Village transitions to a program based budget.
Community Development Current Service Level Revenue Expense Total Cost
Over-the Counter Permits Issued in 15 Minutes + 1 Inspection 46,450 60,385 13,935
Code Enforcement* Average Compliance in 1 Month 0 57,500 57,500
New Business Application
Processing Ave. Processing & Inspection in 2 Weeks 15,750 22,575 6,825
*The Village of Buffalo Grove provides contractual Code Enforcement services to the Village of Long Grove.
Community Development FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Administrative Assistant 2 0 2 0 2 0
Associate Planner 0 1 0 0 0 0
Building Commissioner 1 0 1 0 1 0
Building Inspector 1 0 1 0 1 0
Cashier 0 0 .5 0 .5 0
Clerk II 0 1 0 1 0 1
Community Development Director 1 0 1 0 1 0
Deputy Clerk 0 0 .5 0 .5 0
Electrical Inspector 1 0 1 0 1 0
Health Inspector 1 0 1 0 1 0
Planner 1 0 1 0 1 0
Plan Reviewer 1 0 1 0 1 0
Plumbing Inspector 1 0 1 0 1 0
Property Maintenance Inspector 1 0 1 0 1 0
Total 11 2 12 1 12 1
Full & Part-Time Total 13 13 13
Budget Summary
Community Development
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 937,981 1,169,481 1,173,076
391,320 499,029 497,671
Operating Expenses 180,092 204,611 233,065
Contractual Services 1,387 1,387 26,946
Repair & Maintenance - - -
Commodities 156 2,600 2,000
Other Expenses 13,785 131,000 121,000
Capital Outlay 13,855 13,855 13,855
Total 1,538,576 2,021,963 2,067,613
Budget Variance
Community Development
Line Item
Number Description Percent
Change
Amount
Change Description of Change
510.02 Telephone -100% (8,400) Moved to Internal Service Fund (IT).
510.04 Travel 150% 3,000
Increase in travel expenses related to offsite travel
for additional training and certifications for Plan
Reviewer, Deputy Clerk, Village Planner, Building
Commissioner and Director of Community
Development.
510.06 Per Diem Allowance 66.67% 400
Increase to accommodate the additional travel for
the Plan Reviewer, Deputy Clerk, Village Planner,
Building Commissioner and Director of Community
Development.
510.14 Subscriptions &
Publications -100% (500) No longer required as most subscriptions to trade
magazines have been cancelled.
510.40 Supplies - Office -16.67% (500) Reduced based on Historical Trends.
510.91 NW Economic
Development Program New 15,000 Regional Economic Development Program.
545.01 Vehicles Central
Garage Internal Svc 16.52% 4,588 Increase in allocation of services.
530.50 Small Equipment Tools
& Hardware -23.08% (600) Reduced based on Historical Trends.
580.10 Consultant Fees 20% 20,000 $100k - Lake Cook Corridor Study $20k - Branding
and Marketing.
1,538,576
2,021,963 2,067,613
Total
Community Development
2015 Actual 2016 Est Actual 2017 Budget
137
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund 50 - Community Development 10 - Salaries
500.05 Full Time 789,559 883,797 1,079,244 1,117,514 1,117,676
500.10 Part Time 38,176 39,806 40,460 40,567 44,000
500.35 Overtime 3,901 3,376 4,000 4,000 4,000
500.40 Longevity 6,600 11,000 7,400 7,400 7,400
10 - Salaries 838,237 937,980 1,131,104 1,169,481 1,173,076
Percent Change 2017 vs. 2016 Budget 3.71%
15 - Taxes and Benefits
505.05 Group & Medical Life 167,835 189,351 252,000 245,000 239,244
505.10 Professional Training 4,626 4,180 6,070 6,070 6,000
505.15 Dues & Memberships 1,232 1,767 3,000 3,000 3,000
505.35 Safety Equipment - 146 - - -
505.75 Emp Contribution - FICA 51,915 57,187 69,336 71,588 70,714
505.80 Emp Contribution - IMRF 111,284 125,083 156,884 156,442 161,820
505.85 Emp Contribution Medicare 12,164 13,604 16,401 16,929 16,893
15 - Taxes and Benefits 349,057 391,319 503,691 499,029 497,671
Percent Change 2017 vs. 2016 Budget -1.20%
25 - Operating Expenses
510.02 Telephone 5,760 4,411 8,400 8,400 -
510.04 Travel 990 920 2,000 2,000 5,000
510.06 Per Diem Allowance 194 194 600 600 1,000
510.08 Reception & Comm Affairs 696 1,126 - 1,000 -
510.10 Maintenance Contracts 48,298 48,298 49,900 50,091 49,900
510.14 Subscriptions & Publications 444 174 500 500 -
510.16 Printing 1,561 1,357 1,100 1,100 1,100
510.21 IT Internal Svc Contribution - 47,280 82,677 74,004 82,083
510.40 Supplies - Office 971 1,274 3,000 3,000 2,500
510.91 NW Economic Devlpmnt
Prgm - - - - 15,000
535.01 Facilities Building Mnt
Internal Svc Cntrb - 35,082 41,311 40,776 44,120
545.01 Vehicles Central Garage
Internal Svc - 39,972 27,774 23,140 32,362
25 - Operating Expenses 58,916 180,092 217,262 204,611 233,065
Percent Change 2017 vs. 2016 Budget 7.27%
30 - Contractual Services
515.05 Insurance Premium 1,387 1,387 1,387 1,387 1,451
515.15 Worker's Comp - - 297 - 297
515.20 Non Wrker's Co - - 198 - 198
580.12 Contractual Inspections - - - - 25,000
30 - Contractual Services 1,387 1,387 1,882 1,387 26,946
Percent Change 2017 vs. 2016 Budget 1,331.77%
40 - Repairs and Maintenance
550.05 Other Department
Equipment 155.32 - - - -
40 - Repairs and Maintenance 155 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
138
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
45 - Commodities
530.50 Small Equipment Tools &
Hardware 86 156 2,600 2,600 2,000
45 – Commodities 86 156 2,600 2,600 2,000
Percent Change 2017 vs. 2016 Budget -23.08%
50 - Other Expenses
580.05 All Other Expenses 380 730 1,000 1,000 1,000
580.10 Consultant Fees 8,057 13,054 100,000 130,000 120,000
50 - Other Expenses 8,438 13,785 101,000 131,000 121,000
Percent Change 2017 vs. 2016 Budget 19.80%
55 - Capital Outlay
555.30 Reserve for Capital
Replacement 4,000 3,999 4,000 4,000 4,000
555.40 Reserve for Technology 1,800 1,800 1,800 1,800 1,800
555.50 Reserve for Buildings 6,055 8,055 8,055 8,055 8,055
55 - Capital Outlay 11,855 13,854 13,855 13,855 13,855
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 50 - Community
Development 1,268,134 1,538,576 1,971,394 2,021,963 2,067,613
Percent Change 2017 vs. 2016 Budget 4.88%
139
Public Works Department
The Village of Buffalo Grove Public Works Department is divided into three
functional areas of responsibility: Administration, Engineering, and Operations.
Public Works Administration
Public Works Administration develops and oversees
effective Public Works service delivery programs and
policies. Strategic and long range planning of
departmental service programs, capital
improvement planning, project management and
programming and certain special projects, such as
new computer application development, are also
provided through the administration.
Engineering
Engineering consists of subdivision and development
control, capital improvement engineering, and
general engineering services. Engineering ensures
that safe, efficient, and economical land
development and utility service is provided in all
new developments of the Village. The Engineering
division works closely with the Community
Development Department on permit and zoning
reviews as well as the Police Department on traffic
and signage related issues.
Operations
The Public Works Department is responsible for the
repair and maintenance of all Village facilities, fleet,
and infrastructure. This effort is facilitated through
Public Works Operations and divided into the
Maintenance Division and the Utility Division, which
is comprised of seven Sections: Building
Maintenance, Street, Forestry & Grounds, Central
Garage, Drainage, Sewer, and Water.
Building Maintenance Section
The Building Maintenance Section provides a clean,
healthy, safe, and efficient working environment in
facilities, public areas and meeting places. This
division is responsible for maintaining 193,373
square feet of occupied building space as well as
2,700 streetlights. Major tasks of this Division
include HVAC, plumbing and electrical repairs and
maintenance, street light maintenance, and building
custodial service contract administration. Detailed
financial information can be found in the internal
service fund, Section 8, of the budget document.
Street Section
This Section provides for the maintenance of 120.70
centerline miles of street and approximately 241.40
miles of curb and gutter to insure that they are
clean, safe, and structurally sound for vehicle and
pedestrian use. Major tasks of this Section include
snow & ice control, street sweeping, concrete and
asphalt repairs, regulatory street sign inventory and
maintenance, banner production and installation
and street striping.
140
Forestry and Grounds Section
The Forestry and Grounds Section provides for the
maintenance and care of 20,185 parkway trees and
151 acres of public property, which includes 74-
landscaped roadway medians, 39 retention,
detention basins. Major tasks of this Section include
tree trimming and removal, landscape maintenance,
holiday light installation and removal, and parkway
restoration.
Central Garage Section
The Central Garage Section provides for the repair
and maintenance of the Village’s fleet of 164
vehicles and 83 pieces of equipment. This Section is
also responsible for managing the Village’s vehicle
and equipment fueling system in accordance with
the requirements established by the Office of the
Illinois State Fire marshal (OSFM). Detailed financial
information can be found in the internal service
fund, section 8, of the budget document.
Drainage Section
This Section provides for the preventive
maintenance of the Village storm sewer and
drainage system in accordance with guidelines
established by the Illinois Environmental protection
Agency (IEPA), the Lake County stormwater
Management Commission (LCSMC) and the
Metropolitan Water Reclamation District of Greater
Chicago (MWRDGC). The system is comprised of 39
retention/detention basins (81 acres), 11.3 miles of
stream/creeks, 189 miles of storm sewer,
approximately 10,000 structures, and 2 stormwater
lift stations. Major tasks of this Section include
cleaning storm sewers and structures,
retention/detention basin inlet and outfall repairs
and roadway culvert maintenance.
141
Sewer Section
This Section provides for the inspection, cleaning
and maintenance of the 134 miles of sanitary gravity
sewer, 5 miles of force main, 12 sanitary lift stations
and 3,251 manholes that comprise the Village’s
sanitary sewer system. The system is maintained in
accordance with guidelines established by the Illinois
Environmental protection Agency (IEPA) Lake County
and the Metropolitan Water Reclamation District of
Greater Chicago (MWRDGC). Major tasks of this
Section include flushing and root cutting of the
system, manhole repairs, clearing blockages and
inflow/infiltration (I/I) testing and repairs. Financial
Information is located in the enterprise fund, Section
7 of the budget document.
Water Section
This Section provides for the repair and maintenance
of 180 miles of water main, 1,903 valves, 4,475 fire
hydrants and 4 pump stations and 4 emergency
back-up deep wells that comprise the Village’s water
system. The system is maintained in accordance
with guidelines established by the Illinois
Environmental protection Agency (IEPA), the
American Water Works Association (AWWA) and the
Northwest Water Commission. Major tasks of this
Section include repairing water main breaks, flushing
and repairing fire hydrants, reading and repairing
water meters, well and pump house maintenance
and collecting water samples. Financial Information
is located in the enterprise fund, Section 7 of the
budget document.
142
Department Structure
Director of Public Works
Administration Operations
Building Maintenance
Central Garage
Forestry
Streets
Utilities
Water
Sewer & Drainage
Engineering
143
2017 Staffing Summary
The current approved staffing level for the department is 59. Again In 2017, one approved Maintenance Worker
position is on hold as part of the water meter upgrade program.
Public Works/Engineering FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Automotive Mechanic II 3 0 3 0 1 0
Automotive Mechanic III 1 0 1 0 3 0
Automotive Shop Assistant 0 1 0 1 0 1
Building Maintenance Supervisor 1 0 0 0 0 0
Building Maintenance Manager 0 0 1 0 1 0
Building Maintenance Worker 2 0 2 0 2 0
Building Maintenance Worker II – CL 1 0 1 0 1 0
Civil Engineer I 1 0 1 0 0 0
Civil Engineer II 1 0 1 0 2 0
Deputy Director of Public Works 1 0 1 0 1 0
Director of Public Works 1 0 1 0 1 0
Engineering Aide 0 1 0 1 0 1
Engineering Technician 1 0 1 0 1 0
Fleet Manager 1 0 1 0 1 0
Forestry and Grounds Supervisor 1 0 0 0 0 0
Forestry & Grounds Manager 0 0 1 0 1 0
Laborer – Seasonal 0 6 0 6 0 6
Maintenance Worker I 8 0 6 0 7 0
Maintenance Worker II 13 0 14 0 14 0
Maintenance Worker II – CL 6 0 6 0 5 0
Superintendent of Maintenance 1 0 1 0 1 0
Seasonal Snow Plow Driver 0 1 0 1 0 1
Administrative Assistants 2 1 2 1 2 1
Sewer & Drainage Manager 1 0 1 0 1 0
Streets Manager 1 0 1 0 1 0
Superintendent of Utilities 1 0 1 0 1 0
Village Engineer 1 0 1 0 1 0
Water Manager 1 0 1 0 1 0
Total 50 10 49 10 49 10
Full & Part-Time Total 60 59 59
Service Level Expectations
Public Works Current Service Level Revenue Expense Total Cost
Annual Snow Removal Program 1 Pass on Each Street Every 8 Hours $0 $385,500 $385,500
Response to Pothole Complaints Pothole Repaired Same Day $0 $73,900 $73,900
Tree Trimming All Trees Trimmed Every 9 Years $0 $160,552 $160,552
Street Cleaning All Streets Cleaned Monthly $0 $96,270 $96,270
Hydrant Flushing All Hydrants Flushed Annually $0 $44,287 $44,287
Budget Summary
Streets
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 727,035 739,930 745,750
Personal Benefits 274,837 319,994 313,767
Operating Expenses 279,450 595,356 526,148
Contractual Services 23,684 31,425 32,450
Repair & Maintenance 455,370 635,100 420,650
211,607 367,700 315,660
Capital Outlay 483,706 79,943 79,968
Total 2,455,687 2,769,448 2,434,393
Budget Variance
Streets
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
505.10 Professional
Training 51.38% 1,120
$300 per employee for various annual training and
certifications x 6. $1000 for Section Manager IPSI
$500 for $25% of Maintenance Superintendent
annual training.
505.15 Dues &
Memberships 107.69% 280 APWA annual memberships - 6 employees x $70 CDL
reimbursement - 2 x $60.
505.26 Uniform Rental 12.32% 260 2017 will have new uniform contract - TBD.
510.02 Telephone -100% (2,457) Telephone moved to Internal Service Fund (IT) .
510.21 IT Internal Svc
Contribution 23.77% 11,243 Increase in utilization of fund.
510.55 Department 49.33% 740 This line item is designated for traffic control device
maintenance and new purchases.
545.01 Vehicles Central
Garage Internal Svc -36.02% (159,048) Decrease in utilization of fund.
535.05 Facilities Sidewalks,
Curbs, & Bikeways -49.95% (149,700) Reduction in capital budget.
535.10 Facilities Streets &
Highways -19.92% (64,750) Reduction in capital budget.
530.40 Snow & Ice Control
Mix -24.33% (86,600)
Salt - 3,000 tons @ $75/ton Liquids - 24,000 gallons
@ $1.40/gal Bagged material - 400 bags @ $12/each
Program Training, development, technology,
seminars $6,000.
2,455,687
2,769,448
2,434,393
Total
Public Works - Streets
2015 Actual 2016 Est Actual 2017 Budget
146
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 55 - Public Works Division: 10 - Streets 10 - Salaries
500.05 Full Time 486,585 570,444 601,210 623,970 627,124
500.10 Part Time - 944 - - -
500.35 Overtime 183,659 147,659 110,000 110,000 112,556
500.40 Longevity 3,630 7,985.76 5,960 5,960 6,070
10 - Salaries 673,874 727,034 717,170 739,930 745,750
Percent Change 2017 vs. 2016 Budget 3.99%
15 - Taxes and Benefits
505.00 Personal Benefits 9,847 - - - -
505.05 Group & Medical Life 131,635 127,931 158,250 158,250 150,338
505.10 Professional Training 624 3,343 2,180 2,180 3,300
505.15 Dues & Memberships 310 265 260 460 540
505.20 Clothing Allowance 1,609 383 1,595 1,500 1,740
505.26 Uniform Rental 2,302 3,531 2,110 2,200 2,370
505.35 Safety Equipment 266 1,129 925 925 1,000
505.75 FICA 37,175 44,956 44,465 44,465 44,465
505.80 IMRF 70,443 82,761 99,615 99,615 99,615
505.85 Employer's Contribution
Medicare 8,694 10,535 10,399 10,399 10,399
15 - Taxes and Benefits 262,910 274,836 319,799 319,994 313,767
Percent Change 2017 vs. 2016 Budget -1.89%
25 - Operating Expenses
510.02 Telephone 2,920 1,248 2,457 2,000 -
510.04 Travel 611 - - - -
510.10 Maintenance Contracts 80,756 78,182 100,000 100,000 100,000
510.12 Equipment Rental 599 - 400 400 400
510.14 Subscriptions & Publications - - 81 81 88
510.21 IT Internal Svc Contribution - 27,062 47,301 42,339 58,544
510.40 Office 1,012 393 514 514 560
510.50 All Other 3,508 4,843 5,000 5,000 5,400
510.55 Department 3,149 - 1,500 1,500 2,240
535.01 Facilities Building Mnt
Internal Svc Cntrb - 61,911 76,658 75,665 76,445
545.01 Vehicles Central Garage
Internal Svc - 105,808 441,519 367,857 282,471
25 - Operating Expenses 92,558 279,449 675,430 595,356 526,148
Percent Change 2017 vs. 2016 Budget -22.10%
30 - Contractual Services
515.05 Insurance Premium 22,271 22,271 22,271 22,271 23,296
515.10 Unemployment Insurance 1,200 1,200 1,200 1,200 1,200
515.15 Deductible - Worker's Comp - 213 4,772 4,772 4,772
515.20 Deductible - Non Wrker's Co 183 - 3,182 3,182 3,182
30 - Contractual Services 23,654 23,684 31,425 31,425 32,450
Percent Change 2017 vs. 2016 Budget 3.26%
147
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
40 - Repairs and Maintenance
535.00 Facilities (98) - - - -
535.05 M&R Facilities Sidewalks,
Curbs, & Bikeways 422,420 242,094 299,700 299,700 150,000
535.10 Facilities Streets & Highways 198,915 190,087 325,000 325,000 260,250
545.05 Vehicles Gasoline - 10,236 - - -
545.10 Vehicles Diesel Fuel - 14,308 - - -
545.15 Vehicles Automotive Parts - (3,021) - - -
550.05 Other Department
Equipment 1,235 1,663 9,800 9,800 9,800
550.10 Other Radios 1,239 - 600 600 600
40 - Repairs and Maintenance 623,711 455,369 635,100 635,100 420,650
Percent Change 2017 vs. 2016 Budget -33.77%
45 – Commodities
530.40 Snow & Ice Control Mix 448,753 180,679 356,000 325,000 269,400
530.50 Tools & Hardware 319 367 700 700 760
530.55 Traffic & Street Signs 32,594 30,560 42,000 42,000 45,500
45 - Commodities 481,667 211,606 398,700 367,700 315,660
Percent Change 2017 vs. 2016 Budget -20.83%
55 - Capital Outlay
555.10 Office and Other Equipment - 528 575 575 600
555.20 Automobiles & Trucks - 403,809 - - -
555.30 Capital Replacement 72,998 72,998 72,998 72,998 72,998
555.40 Reserve for Technology 1,000 999 1,000 1,000 1,000
555.50 Reserve for Buildings 5,370 5,370 5,370 5,370 5,370
55 - Capital Outlay 79,368 483,705 79,943 79,943 79,968
Percent Change 2017 vs. 2016 Budget 0.03%
Division Total: 10 - Streets 2,237,746 2,455,687 2,857,567 2,769,448 2,434,393
Percent Change 2017 vs. 2016 Budget -14.81%
148
Budget Summary
Public Works Administration
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 317,676 203,152 247,591
Personal Benefits 113,130 85,757 107,375
Operating Expenses 35,978 58,076 67,544
Contractual Services 7,447 7,047 10,288
Repair & Maintenance 46 2,000 2,000
Capital Outlay 5,344 18,380 18,380
Total 479,621 374,412 453,178
Budget Variance
Public Works Administration
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
500.05 Full Time 13.96% 30,339
This is a 13% increase over 2016. The vacated
Administrative Assistant was changed to a
Management Analyst. For budgeting purposes,
we have used the values of an internal
promotion for this estimate.
500.35 Overtime -100% (383) New Position is not eligible for overtime.
500.40 Longevity -100% (1,000) New Position is not eligible for Longevity.
505.15 Dues & Memberships 68.18% 3,060
This includes $4,000 for NIPSTA membership for
Public Works OSHA compliance training and
other training programs.
505.20 Clothing Allowance 60% 150 Increase to account for new employee.
505.75 FICA 13.25% 1,796 Increase to total budgeted payroll.
505.80 IMRF 13.24% 4,016 Increase in IMRF rate to 13.89%.
505.85 Employer's Contribution
Medicare 13.25% 420 Increase to total budgeted payroll.
510.02 Telephone -100% (2,800) Moved to Internal Service Fund (IT).
510.04 Travel 100% 600 Re-allocation of funds previously charged to
Dues & Memberships.
510.21 IT Internal Svc Contribution 16.62% 6,544 Increase in fund budget and proportional share.
535.01 Facilities Building Mnt
Internal Svc Cntrb 14.70% 1,542 Increase in fund budget and proportional share.
545.01 Vehicles Central Garage
Internal Svc -75.45% (879) Removed from internal service fund utilization.
479,621
374,412
453,178
Total
Public Works - Administration
2015 Actual 2016 Est Actual 2017 Budget
150
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Division: 15 - Administration
10 - Salaries
500.05 Full Time 257,530 315,675 217,252 202,152 247,591
500.35 Overtime - - 383 - -
500.40 Longevity 1,600 2,000 1,000 1,000 -
10 - Salaries 259,130 317,675 218,635 203,152 247,591
Percent Change 2017 vs. 2016 Budget 13.24%
15 - Taxes and Benefits
505.00 Personal Benefits 1,353 - - - -
505.05 Group & Medical Life 57,453 43,210 44,100 43,000 41,895
505.10 Professional Training 2,515 1,371 3,850 3,850 3,850
505.15 Dues & Memberships 3,910 3,772 4,488 3,344 7,548
505.20 Clothing Allowance 117 40 250 100 400
505.35 Safety Equipment - 350 400 175 400
505.75 FICA 14,080 17,682 13,555 10,166 15,351
505.80 IMRF 45,944 42,123 30,325 22,744 34,341
505.85 Employer's Contribution Medicare 3,686 4,578 3,170 2,378 3,590
15 - Taxes and Benefits 129,060 113,130 100,138 85,757 107,375
Percent Change 2017 vs. 2016 Budget 7.23%
25 - Operating Expenses
510.00 Operating Expenses 489 - - - -
510.02 Telephone 2,626 1,341 2,800 2,800 -
510.04 Travel 193 374 600 600 1,200
510.10 Maintenance Contracts 0 1,792 - - -
510.12 Equipment Rental 40 - - - -
510.14 Subscriptions & Publications 49 222 2,000 2,000 2,000
510.21 IT Internal Svc Contribution - 18,181 39,384 35,253 45,928
510.40 Office 1,574 5,505 5,600 5,600 5,600
510.50 All Other 34 90 500 500 500
535.01 Facilities Building Mnt Internal Svc Cntrb - 8,470 10,488 10,352 12,030
545.01 Vehicles Central Garage Internal Svc - - 1,165 971 286
25 - Operating Expenses 5,007 35,978 62,537 58,076 67,544
Percent Change 2017 vs. 2016 Budget 8.01%
30 - Contractual Services
515.05 Premium 7,047 7,047 7,047 7,047 7,371
515.10 Unemployment Insurance - 399 400 - 400
515.15 Deductible - Worker's Comp - - 1,510 - 1,510
515.20 Deductible - Non Wrker's Co - - 1,007 - 1,007
30 - Contractual Services 7,047 7,446 9,964 7,047 10,288
Percent Change 2017 vs. 2016 Budget 3.25%
40 - Repairs and Maintenance
545.05 Vehicles Gasoline 49 - - - -
550.05 Other Department Equipment - 45 2,000 2,000 2,000
40 - Repairs and Maintenance 49 45 2,000 2,000 2,000
Percent Change 2017 vs. 2016 Budget 0.00%
151
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
55 - Capital Outlay
555.10 Office and Other Equipment 6,867 763 13,800 13,800 13,800
555.40 Reserve for Technology 1,000 999 1,000 1,000 1,000
555.50 Reserve for Buildings 3,580 3,579 3,580 3,580 3,580
55 - Capital Outlay 11,447 5,343 18,380 18,380 18,380
Percent Change 2017 vs. 2016 Budget 0.00%
Division Total: 15 - Administration 411,743 479,620 411,654 374,412 453,178
Percent Change 2017 vs. 2016 Budget 10.09%
152
Budget Summary
Forestry
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 809,760 810,629 889,638
Personal Benefits 322,584 393,742 389,096
Operating Expenses 461,892 503,930 533,572
Contractual Services 22,564 30,705 29,860
Repair & Maintenance
- 1,100 102,100
1,560 3,375 12,650
Capital Outlay 404,039 71,197 70,845
Total 2,022,400 1,814,678 2,027,761
Budget Variance
Forestry
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
500.10 Part Time 33.86% 15,553
This budget line is increasing in 2017 to
accommodate the winter seasonal employees, at
an elevated pay rate. This increase will be mirrored
by a decrease in the Street Section overtime
budget for 2017.
500.35 Overtime 43.17% 2,456 Increased OT trending; salary adjustment increase
505.10 Professional Training 19.87% 920
$450 per employee for various continuing
education and license renewals x 9. $1000 for
Section Manager MAPSI $500 for 25% of
Maintenance Superintendent annual training.
510.02 Telephone -100% (2,615) Moved to Internal Service Fund (IT).
510.10 Maintenance Contracts 83.33% 90,000
Discontinued annual tree trimming contract;
Annual grass mowing contract; seasonal portable
restroom rentals + cleanings.
510.21 IT Internal Svc
Contribution 30.89% 16,678 Increase in Internal Service Fund budget.
535.01 Facilities Building Mnt
Internal Svc Cntrb 14.98% 7,805 Increase in Internal Service fund budget.
535.30 Facilities Parkway Trees New
Item 101,000
The EAB program is complete all tree replacements
are budgeted through Forestry as was prior
practice.
545.01 Vehicles Central Garage
Internal Svc -18.87% (45,095) Decrease in Internal Service fund budget.
530.45 Chemicals and
Fertilizers 380% 9,500
$2,300 to apply weed control to 150 acres twice
during growing season. $8300 to fertilize turf one
time during season. $1400 to treat fence lines,
planting beds, and natural areas.
153
2,022,400
1,814,678
2,027,761
Total
Public Works - Forestry
2015 Actual 2016 Est Actual 2017 Budget
154
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Division: 20 - Forestry
10 - Salaries
500.05 Full Time 718,071 758,195 796,239 772,425 812,547
500.10 Part Time 22,312 14,315 45,929 20,140 61,482
500.35 Overtime 7,710 29,463 5,689 10,000 8,145
500.40 Longevity 6,500 7,785 8,064 8,064 7,464
10 - Salaries 754,594 809,759 855,921 810,629 889,638
Percent Change 2017 vs. 2016 Budget 3.94%
15 - Taxes and Benefits
505.00 Personal Benefits 7,274 - - - -
505.05 Group & Medical Life 151,747 136,537 200,250 197,000 190,238
505.10 Professional Training 2,145 3,531 4,630 4,000 5,550
505.15 Dues & Memberships 1,662 1,963 1,795 2,489 1,960
505.20 Clothing Allowance 1,297 1,590 2,439 2,439 2,670
505.26 Uniform Rental 2,127 2,516 2,162 2,320 2,368
505.35 Safety Equipment 318 931 1,360 1,300 1,485
505.75 FICA 45,364 50,168 53,067 53,067 53,067
505.80 IMRF 102,077 113,591 118,716 118,716 118,716
505.85 Employer's Contribution
Medicare 10,609 11,754 12,411 12,411 13,042
15 - Taxes and Benefits 324,624 322,584 396,830 393,742 389,096
Percent Change 2017 vs. 2016 Budget -1.95%
25 - Operating Expenses
510.02 Telephone 1,592 2,084 2,615 2,200 -
510.10 Maintenance Contracts 5,372 107,934 108,000 180,000 198,000
510.12 Equipment Rental - - 900 500 985
510.14 Subscriptions & Publications - - 100 100 100
510.21 IT Internal Svc Contribution - 54,803 53,995 48,331 70,673
510.40 Office 116 237 500 500 500
510.50 All Other 5,027 4,992 5,400 18,500 5,900
510.55 Op. Expenses Department 2,861 4,195 3,250 3,200 3,550
535.01 Facilities Building Mnt
Internal Svc Cntrb - 42,090 52,117 51,442 59,922
545.01 Vehicles Central Garage
Internal Svc - 245,553 239,037 199,157 193,942
25 - Operating Expenses 14,969 461,891 465,914 503,930 533,572
Percent Change 2017 vs. 2016 Budget 14.52%
30 - Contractual Services
515.05 Premium 19,713 19,713 19,713 29,205 20,620
515.10 Unemployment Insurance 2,200 2,199 2,200 - 2,200
515.15 Deductible - Worker's Comp 1,528 651 4,224 1,500 4,224
515.20 Deductible - Non Wrker's Co - - 2,816 - 2,816
30 - Contractual Services 23,441 22,564 28,953 30,705 29,860
Percent Change 2017 vs. 2016 Budget 3.13%
155
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
40 - Repairs and Maintenance
535.30 Facilities Parkway Trees (19,382) - - - 101,000
550.05 Other Department
Equipment - - 650 600 600
550.10 Other Radios - - 500 500 500
40 - Repairs and Maintenance (19,382) - 1,150 1,100 102,100
Percent Change 2017 vs. 2016 Budget 8778.26%
45 - Commodities
530.45 Chemicals and Fertilizers 2,407 1,182 2,500 2,500 12,000
530.50 Small Equipment Tools &
Hardware 567 377 650 875 650
45 - Commodities 2,975 1,560 3,150 3,375 12,650
Percent Change 2017 vs. 2016 Budget 301.59%
55 - Capital Outlay
555.10 Office and Other Equipment - 528 - 352 -
555.20 Automobiles & Trucks 125,711 299,028 - - -
555.30 Capital Replacement 60,000 93,637 60,000 60,000 60,000
555.40 Reserve for Technology 1,299 999 1,000 1,000 1,000
555.50 Reserve for Buildings 9,845 9,845 9,845 9,845 9,845
55 - Capital Outlay 196,856 404,039 70,845 71,197 70,845
Percent Change 2017 vs. 2016 Budget 0.00%
Division Total: 20 - Forestry 1,298,079 2,022,399 1,822,763 1,814,678 2,027,761
Percent Change 2017 vs. 2016 Budget 11.25%
Budget Summary
Drainage
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 175,235 240,702 230,433
Personal Benefits 90,185 121,641 88,803
Operating Expenses 68,245 78,578 102,015
Contractual Services 9,484 8,620 12,898
Repair & Maintenance 6,739 8,550 12,100
160 800 1,050
Capital Outlay 489,733 710,851 570,851
Total 839,780 1,169,742 1,018,150
156
Budget Variance
Drainage
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
500.05 Full Time -10.79% (26,165) Two newer lower paid employees are
now working in the drainage section.
500.35 Overtime 71.43% 5,000 Based on last years OT hours work .
500.40 Longevity 10% 200 Account correction from last year.
505.75 FICA -57.78% (9,006) Decrease in budgeted payroll.
505.80 IMRF -57.72% (20,126) Decrease in budgeted payroll.
505.85 Employer's Contribution Medicare -57.78% (2,106) Decrease in budgeted payroll.
510.02 Telephone -100% (780) Moved to internal Service Fund (IT).
510.21 IT Internal Svc Contribution 190.56% 11,268 IT charge back.
535.01 Facilities Building Mnt Internal Svc
Cntrb 44.34% 8,627 Increase in internal service fund
budget.
545.01 Vehicles Central Garage Internal Svc -11.04% (6,093) Decrease in internal service fund
budget.
555.60 Reserve for Infrastructure -30.56% (110,000) Less funds available for reserves.
839,780
1,169,742
1,018,150
Total
Public Works - Drainage
2015 Actual 2016 Est Actual 2017 Budget
157
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Division: 25 - Drainage
10 - Salaries
500.05 Full Time 179,952 168,765 242,398 229,702 216,233
500.35 Overtime 5,161 5,350 7,000 9,000 12,000
500.40 Longevity 2,430 1,119 2,000 2,000 2,200
10 - Salaries 187,543 175,235 251,398 240,702 230,433
Percent Change 2017 vs. 2016 Budget -8.34%
15 - Taxes and Benefits
505.00 Personal Benefits 1,928 - - - -
505.05 Group & Medical Life 25,570 50,263 65,500 64,000 62,225
505.10 Professional Training 115 167 600 500 600
505.15 Dues & Memberships 80 132 200 220 215
505.20 Clothing Allowance 314 214 500 450 500
505.26 Uniform Rental 597 1,205 1,100 1,000 1,100
505.35 Safety Equipment 2,166 280 1,300 1,100 1,300
505.75 FICA 11,170 10,608 15,587 15,857 6,581
505.80 IMRF 26,247 24,770 34,869 34,869 14,743
505.85 Employer's Contribution
Medicare 2,612 2,542 3,645 3,645 1,539
15 - Taxes and Benefits 70,803 90,184 123,301 121,641 88,803
Percent Change 2017 vs. 2016 Budget -27.98%
25 - Operating Expenses
510.02 Telephone 144 109 780 700 -
510.12 Equipment Rental - - 300 200 300
510.14 Subscriptions & Publications - 3,500 5,200 5,200 5,200
510.21 IT Internal Svc Contribution - 7,732 5,913 5,293 17,181
510.40 Office 380 21 450 450 480
510.50 All Other 75 184 1,000 950 1,050
510.55 Department 317 - 600 600 625
535.01 Facilities Building Mnt Internal
Svc Cntrb - 15,712 19,455 19,203 28,082
545.01 Vehicles Central Garage Internal
Svc - 40,985 55,190 45,982 49,097
25 - Operating Expenses 917 68,244 88,888 78,578 102,015
Percent Change 2017 vs. 2016 Budget 14.77%
30 - Contractual Services
515.05 Premium 8,620 8,620 8,620 8,620 9,017
515.10 Unemployment Insurance 400 800 800 - 800
515.15 Deductible - Worker's Comp 1,668 64 1,850 - 1,850
515.20 Deductible - Non Wrker's Co - - 1,231 - 1,231
30 - Contractual Services 10,688 9,484 12,501 8,620 12,898
Percent Change 2017 vs. 2016 Budget 3.18%
40 - Repairs and Maintenance
540.35 Water & Sewer Storm and
Sanitary Sewers 3,478 5,990 8,000 5,000 8,000
550.05 Other Department Equipment - 748 3,200 2,800 3,300
550.10 Other Radios - - 200 150 200
158
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
550.30 Other Staff Equipment - - 600 600 600
40 - Repairs and Maintenance 3,478 6,738 12,000 8,550 12,100
Percent Change 2017 vs. 2016 Budget 0.83%
45 - Commodities
530.50 Small Equipment Tools &
Hardware 18 159 1,000 800 1,050
45 - Commodities 18 159 1,000 800 1,050
Percent Change 2017 vs. 2016 Budget 5%
55 - Capital Outlay
555.00 Capital Equipment - 60,202 - - -
555.10 Office and Other Equipment - 528 - - -
555.30 Reserve for Capital Replacement 18,301 18,300 18,301 18,301 18,301
555.40 Reserve for Technology 750 750 750 750 750
555.50 Reserve for Buildings 1,790 1,790 1,800 1,800 1,800
555.60 Reserve for Infrastructure - - 360,000 360,000 250,000
560.40 Improvements Other Than
Building 505,030 408,161 330,000 330,000 300,000
55 - Capital Outlay 525,871 489,733 710,851 710,851 570,851
Percent Change 2017 vs. 2016 Budget -19.69%
Division Total: 25 - Drainage 799,321 839,780 1,199,939 1,169,742 1,018,150
Percent Change 2017 vs. 2016 Budget -15.15%
159
Budget Summary
Engineering
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 431,256 465,423 477,000
Personal Benefits 182,087 195,999 191,872
Operating Expenses 63,350 65,488 87,179
Contractual Services 12,283 12,286 16,676
Repair & Maintenance - 1,000 3,300
- 600 750
Capital Outlay 11,177 11,177 11,177
Total 700,153 286,550 310,954
Budget Variance
Engineering
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
500.05 Full Time 14.96% 62,072 5 Full time employees.
500.10 Part Time -73.21% (27,332) 2 interns.
500.40 Longevity 14.29% 200 2 employees eligible for longevity
bonuses.
505.20 Clothing Allowance 50% 200 Clothing allowance for Division Employees.
510.02 Telephone -100% (3,600)
Cell Phone monthly fees and related
equipment purchases. IPad and/or
Surface network card monthly fees.
510.04 Travel 100% 100 Travel expenses for Division Employees.
510.14 Subscriptions & Publications -20% (50) Subscription to industry magazines such as
APWA or ASCE.
510.16 Printing -13.04% (300) Reduction in expenses per year.
510.21 IT Internal Svc Contribution 50.76% 13,194 Increase in internal service fund budget.
555.10 Office and Other Equipment -100% (4,500) Reduction in equipment planned to be
purchased in fiscal year.
700,153
286,550 310,954
Total
Engineering
2015 Actual 2016 Est Actual 2017 Budget
161
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Department: 60 - Engineering 10 - Salaries
500.05 Full Time 396,130 398,542 414,928 426,076 477,000
500.10 Part Time 12,402 31,314 37,332 37,697 10,000
500.35 Overtime - - 600 250 600
500.40 Longevity 2,400 1,400 1,400 1,400 1,600
10 - Salaries 410,932 431,256 454,260 465,423 489,200
Percent Change 2017 vs. 2016 Budget 7.69%
15 - Taxes and Benefits
505.05 Group & Medical Life 81,377 85,291 84,000 90,000 79,748
505.10 Professional Training 3,187 5,151 7,000 6,500 7,000
505.15 Dues & Memberships 1,123 1,289 800 650 800
505.20 Clothing Allowance 314 - 400 600 600
505.26 Uniform Rental 354 806 500 500 500
505.35 Safety Equipment - - 400 350 400
505.75 FICA 25,451 26,487 27,391 28,283 29,075
505.80 IMRF 55,629 56,820 61,776 62,367 66,778
505.85 Employer's Contribution Medicare 5,952 6,240 6,458 6,749 6,971
15 - Taxes and Benefits 173,390 182,087 188,725 195,999 191,872
Percent Change 2017 vs. 2016 Budget 1.67%
25 - Operating Expenses
510.02 Telephone 4,859 1,920 3,600 3,000 -
510.04 Travel 93 24 100 150 200
510.06 Per Diem Allowance - 45 250 200 250
510.14 Subscriptions & Publications - - 250 150 200
510.16 Printing 608 - 2,300 500 2,000
510.20 Computer Services 4,754 4,474 5,000 3,000 5,000
510.21 IT Internal Svc Contribution - 25,233 25,995 23,268 39,189
510.40 Office 1,435 1,359 1,500 1,500 1,500
510.50 All Other 2,127 444 1,500 1,500 1,500
535.01 Facilities Building Mnt Internal Svc Cntrb - 15,979 19,542 19,530 21,482
545.01 Vehicles Central Garage Internal Svc - 13,867 15,231 12,690 15,858
25 - Operating Expenses 13,878 63,349 75,268 65,488 87,179
Percent Change 2017 vs. 2016 Budget 15.82%
30 - Contractual Services
515.05 Premium 12,283 12,283 12,286 12,286 12,286
515.15 Deductible - Worker's Comp - - 2,635 - 2,635
515.20 Deductible - Non Wrker's Co 424 - 1,755 - 1,755
30 - Contractual Services 12,707 12,283 16,676 12,286 16,676
Percent Change 2017 vs. 2016 Budget 0.00%
40 - Repairs and Maintenance
550.05 Other Department Equipment 1,311 - 3,000 1,000 3,000
550.10 Other Radios - - 300 - 300
40 - Repairs and Maintenance 1,311 - 3,300 1,000 3,300
Percent Change 2017 vs. 2016 Budget 0.00%
162
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
45 - Commodities
530.50 Small Equipment Tools & Hardware 399 - 750 600 750
45 - Commodities 399 - 750 600 750
Percent Change 2017 vs. 2016 Budget 0.00%
50 - Other Expenses
580.05 All Other Expense All Other Expenses 10 - - - -
50 - Other Expenses 10 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment 4,428 - 4,500 - -
555.30 Reserve for Capital Replacement 3,702 3,702 3,702 3,702 3,702
555.40 Reserve for Technology 4,488 3,000 3,000 3,000 3,000
555.50 Reserve for Buildings 4,475 4,475 4,475 4,475 4,475
Account Classification Total: 55 - Capital Outlay 17,093 11,177 15,677 11,177 11,177
Percent Change 2017 vs. 2016 Budget -28.70%
Department Total: 60 - Engineering 629,724 700,153 754,656 751,973 800,154
Percent Change 2017 vs. 2016 Budget 6.03%
163
Non-Operating Transfers
This program provides for transfers from prior accumulations of Corporate Fund reserves for capital projects and
other operating uses as recommended and authorized within the Village’s Fund Balance Use policy for the General
Fund.
Additionally, funds will be transferred to the Facilities Development Capital Project Fund for various capital
development programs authorized by the Corporate Authorities as part of the Village’s FY 2017 through FY 2021
Capital Improvement Plan. Funding for these transfers will come from prior accumulation of unreserved General
Fund reserves.
Budget Summary
Non-Operating Transfers- General Government
2015 Actual 2016 Est Actual 2017 Budget
Other Expenses 99,506 400,000 300,000
Other Financing Uses 859,207 204,315 299,653
Total 958,713 604,315 599,653
Budget Variance
Non-Operating Transfers
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
580.05 All Other Expenses -45.45% (250,000) Reduced based on historical trend.
570.60 Operating Transfers Arboretum
Golf Course Fund 26.74% 41,448 Increase Subsidy for Arboretum Golf
Club.
570.70 Operating Transfers Buffalo Grove
Golf Course Fund -29.77% (43,734) Reduced subsidy for BG Golf Course.
164
958,713
604,315 599,653
Total
Transfers Non-Operating - General
Government
2015 Actual 2016 Est Actual 2017 Budget
165
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 100 - General Fund Department: 70 - Transfer Non-Operating Division: 40 - General Government 50 - Other Expenses
580.05 All Other Expense All Other Expenses 157,731 99,506 550,000 400,000 300,000
50 - Other Expenses 157,731 99,506 550,000 400,000 300,000
Percent Change 2017 vs. 2016 Budget -45.45%
65 - Other Financing Uses
570.50 Motor Fuel Tax Fund 767,601 859,206 - - -
570.60 Arboretum Golf Course Fund - - 155,020 109,424 196,468
570.70 Buffalo Grove Golf Course Fund 78,745 - 146,919 94,891 103,185
570.75 Health Insurance (15,373) - - - -
65 - Other Financing Uses 830,973 859,206 301,939 204,315 299,653
Percent Change 2017 vs. 2016 Budget -0.76%
Division Total: 40 - General Government 988,705 958,712 851,939 604,315 599,653
Percent Change 2017 vs. 2016 Budget -29.61%
166
Budget Summary
Non-Operating Transfers- Public Works
2015 Actual 2016 Est Actual 2017 Budget
Other Financing Uses 1,158,644 1,778,000 2,225,303
Total 1,158,644 1,778,000 2,225,303
Budget Variance
Non-Operating Transfers- Public Works
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
570.30 Capital Projects Fund 25.15% 447,220 Increase Funding of
Projects.
1,158,644
1,778,000
2,225,303
Total
Transfer Non-Operating - Public Works
2015 Actual 2016 Est Actual 2017 Budget
167
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Amount
2017
Budget
Division: 45 - Public Safety 65 - Other Financing Uses
570.90 Police Pension Fund 1,668 - - - -
570.95 Fire Pension Fund 2,371 - - - -
65 - Other Financing Uses 4,040 - - - -
Division Total: 45 - Public Safety 4,040 - - - -
Division: 50 - Public Works 65 - Other Financing Uses
570.30 Capital Projects Fund 635,217 1,158,644 1,778,083 1,778,000 2,225,303
65 - Other Financing Uses 635,217 1,158,644 1,778,083 1,778,000 2,225,303
Percent Change 2017 vs. 2016 Budget 25.15%
Division Total: 50 - Public Works 635,217 1,158,644 1,778,083 1,778,000 2,225,303
25.15%
168
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Section 6
Capital Improvement Plan
Capital Improvement Request Summary
Capital Projects Budgeted by Fund
Summary Sheet
Detailed Project Sheets
Criteria List and Scoring Matrix
Reserve for Capital Replacement - Vehicles
Capital Improvement Request Summary
The Capital Improvement Plan (CIP) is intended to be a decision-making tool for the Village Board and staff. The
operational need for capital expenditures must be weighed against the ability of the Village to finance these
projects. Capital improvement projects represent the equipment and infrastructure resources that all
municipalities need to provide resident and business services and generally provide future benefits with long
service life. A capital expenditure is incurred when the Village spends money to buy fixed assets or add value to an
existing fixed asset.
The Village Board’s ultimate approval of the CIP does not authorize spending on the included projects. Each
project must still be accepted for the current year’s budget. Projects must then go through the procurement
process including Board authorization to bid and Board award of bid. This insures that the project remains
consistent with the budget and that identified funding is available at the time of award.
Staff continues to review and evaluate each project as we lead into the 2017 budget cycle. Ongoing projects are
revisited yearly and changes in priority are made as current conditions warrant. This document represents the
formal requests that were received from all Village departments for inclusion in the 2017-2021 CIP, but this year,
as in past years, not all projects presented here will ultimately receive funding within the proposed 2017 budget.
Projects identified for FY 2017 total $12,694,303 and fall under six categories. The following chart illustrates each
category’s percentage as it relates to funding the capital program for FY 2017.
Water Main &
Sanitary Sewer
30%
Buildings and
Grounds
23%
Technology
2%
Storm Sewer
System
6%
Street, Sidewalk
& Bikepath
39%
2017 Capital Project Request by Category
171
The impact of the CIP on the 2017 budget and beyond will be significant as aging infrastructure needs to be
addressed. Facility costs continue to rise and become more of a pressing issue as the repairs required are only
keeping the buildings operational. None of the capital improvements budgeted for facilities increase
environmental efficiency, expand or create additional work space for staff, or improve the overall functionality of
the buildings. These expenditures simply allow the buildings to meet minimum standards for staff to occupy.
Information technology infrastructure and data sharing are high priority programs for the Village of Buffalo Grove.
In the strategic plan the Village outlined the need to upgrade hardware and software. FY 2017 will see new
software implemented and existing software upgraded. The Village will continue replacing terminals village-wide
based on the assessment done in 2014. The replacement schedule is in its third year of the five year replacement
cycle. Other hardware costs for servers and other essential equipment have been identified and placed on a
similar schedule based on the asset’s useful life cycle.
The largest outlay for the CIP is the annual street maintenance program. The work is carefully scheduled so that
maintenance and resurfacing activities can be accomplished before more costly road reconstruction becomes
necessary. It is imperative that the Village maintain this program. In 2016 the Village allocated over $8 million
dollars to roads. A more severely deteriorated or failed road is much more costly to replace than performing
periodic maintenance. The cost of reconstruction can be as much as three times the amount of timely
maintenance. The Engineering department assesses all Village maintained roads annually. Their assessment is a
continuous process that serves as the basis for road repair, maintenance, and replacement. The operating budgets
for road repairs and emergency maintenance activities can remain low as the Village continues to maintain a
minimum average pavement condition.
The Village continues to fund the capital reserve for vehicle replacement. This joint effort between OVM, Finance,
and Central Garage is intended to put high quality equipment in service so each department can complete its
responsibilities. Below is a list of the 2017 budgeted vehicle purchases:
Unit # Description Department Cost
213 E-One Pumper 1/2 Payment 2017 Fire $366,330
236 E-One Tower Ladder 1/2 2017 Fire $366,330
224 Ford Ambulance-09 Fire $230,000
292 Chevrolet Impala - 09 Fire $26,118
297 Chevrolet Impala - 08 Fire $26,1180
G13 Kohler Generator #26 Fire $80,000
710 Ford Explorer - 13 Police $26,118
719 Ford Explorer - 13 Police $26,118
725 Ford Taurus-13 Police $26,118
730 Ford Taurus-13 Police $26,118
732 Ford Crown-Victoria-07 Police $26,118
4 Ford Taurus-05 Code Enforcement $18,500
5 Ford Taurus-05 Code Enforcement $18,500
304 Ford Ranger -08 Code Enforcement $20,000
413 Chevrolet Astro-Van -00 Engineering $25,555
440 Chev Aerial w Utility -98 Building Maint. $100,000
441 Chev. 3/4 Ton Pickup -02 Building Maint. $32,625
460 Ford F350 Pickup-08 PW Street $32,625
461 Ford F350 Pickup-08 PW Street 32,625
450 Chevrolet 3/4 Ton Pickup -02 PW Water $32,625
GP09 Onan Portable Generator PW Sanitary Sewer $20,000
Total $1,558,541
The street and streetscape programs will be active again in FY 2017. The Village will also complete roof repairs
and needed maintenance, in addition to continued improvements of sidewalks and bike paths.
The Village will make needed upgrades, repairs, and maintenance to water facilities, water mains, and storm sewer
systems. These capital outlays are ongoing as these systems are very expensive to maintain. The Village has a
twenty year water proforma, which not only takes into account the revenues that will/can be generated, but the
costs that are anticipated to be incurred over that time. The Village assesses the system and plans upgrades and
replacements. These assessments allow the Village to avoid incurring excess costs due to breaks and failures
within the system as those items most in need of repair or replacement are done so prior to a failure.
2017 Capital Projects Budgeted By Fund Capital Projects Fund - Facilities Requested Budgeted
Building Replacement - CAFT $850,000 $286,000
Flooring Capital Replacement Projects $159,033 $159,033
HVAC Unit Replacements $550,000 $550,000
Increase Apparatus Door Height - Fire Station 26 $48,000 $48,000
Municipal Parking Facility Maintenance $254,000 $254,000
Repurpose Administration Area - Fire Station 26 $25,000 $25,000
Roof Capital Replacement Projects $276,850 $276,850
Fire Station Sign Replacement $28,000 $28,000
Fire Station 26 Brick Fascia Repair $24,000 $24,000
Village Campus Long Range Planning $100,000 $100,000
Village Gateway Feature $25,000 $25,000
Police Headquarters Jail Interlock Upgrade $99,420 $99,420
Subtotal $2,439,303 $1,875,303
Capital Projects Fund - Street Requested Budgeted
Annual Street Maintenance $4,000,000 $1,200,000
Collector Route Maintenance and Rehabilitation Program $300,000 $300,000
Dundee Road Median Improvements $40,000 $40,000
Dundee Road and Buffalo Grove Road Intersection $150,000 $150,000
Lake Cook Road Improvement $50,000 $50,000
Raupp Bridge Reconstruction $60,000 $60,000
Weiland Road/Lake Cook Road Improvements $50,000 $50,000
Subtotal $4,650,000 $1,850,000
General Fund Requested Budgeted
Annual Sidewalk/Bike Path Maintenance $325,000 $150,000
Storm Water System Upgrades and Repairs $778,000 $300,000
Subtotal $1,103,000 $450,000
Golf Fund Requested Budgeted
Buffalo Grove Golf Course Clubhouse Improvements $110,000 $110,000
Buffalo Grove Golf Course Restaurant Improvements $350,000 $350,000
Golf Course Improvements $25,000 $25,000
Golf Course Irrigation Improvements $33,000 $33,000
Subtotal $518,000 $518,000
Water and Sewer Fund Requested Budgeted
SCADA Improvements $200,000 $0
Capacity Management Operations & Maintenance $54,000 $54,000
Lift Station Repair & Rehabilitation $900,000 $900,000
Pump House Repairs & Security Improvements $550,000 $300,000
Villagewide Sanitary Sewer Replacement 1 $1,210,000 $0
Villagewide Water Main Replacement $1,070,000 $925,700
Subtotal $3,984,000 $2,179,700
Total $12,694,303 $6,873,003
1 Any essential repairs needed will be performed and drawn against the Village’s line of credit
174
27%
27%
7%
7%
32%
2017 Capital Projects Budgeted By Fund
Capital Projects Fund - Facilities
Capital Projects Fund - Street
General Fund
Golf Fund
Water and Sewer Fund
175
2017-2021 Capital Project Request Summary Table
2017 2018 2019 2020 2021
Buildings and Grounds Improvements
Building Replacement - CAFT $850,000 -$188,000 -$188,000 -$188,000 -
Flooring Capital Replacement Projects $159,033 $82,768 $98,154 - -
Fire Sprinkler System - Fire Station 27 - - $100,000 - -
Buffalo Grove Golf Course Clubhouse Improvements $110,000 $50,000 $50,000 - -
Buffalo Grove Golf Course Restaurant
Improvements $350,000 - - - -
Golf Course Improvements $25,000 $100,000 $100,000 $75,000
Golf Course Irrigation Improvements $33,000 $25,000 $55,000 - -
HVAC Unit Replacements $550,000 $120,000 $120,000 $120,000 $120,000
Increase Apparatus Door Height - Fire Station 26 $48,000 - - - -
Municipal Parking Facility Maintenance $254,000 $125,000 $125,000 $125,000 $125,000
Repurpose Administration Area - Fire Station 26 $25,000 - - - -
Roof Capital Replacement Projects $276,850 $429,800 - - $79,100
Fire Station Sign Replacement $28,000 $28,000 $28,000 - -
Fire Station 26 Brick Fascia Repair $24,000 - - - -
Village Campus Long Range Planning $100,000 - - - -
Village Gateway Feature – Deerfield/Milwaukee Ave $25,000 $50,000 $25,000 - -
Subtotal $2,857,883 $822,568 $513,154 $132,000 $324,100
Street, Sidewalk & Bikepath Maintenance
Annual Street Maintenance $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000
Collector Route Maintenance and Rehabilitation
Program $300,000 $180,000 $180,000 $2,250,000 $2,250,000
Dundee Road Median Improvements $40,000 $40,000 $40,000 $40,000 $40,000
Dundee Road and Buffalo Grove Road Intersection $150,000 - - - -
Lake Cook Road Improvement $50,000 $225,000 $225,000 $225,000 -
Raupp Bridge Reconstruction $60,000 - - - -
Annual Sidewalk/Bike Path Maintenance $325,000 $325,000 $325,000 $325,000 $325,000
Weiland Road/Lake Cook Road Improvements $50,000 $300,000 $500,000 - -
Subtotal $4,975,000 $5,070,000 $5,270,000 $6,840,000 $6,615,000
Storm Water Management
Storm Water System Upgrades and Repairs $778,000 $350,000 $520,000 $470,000 $450,000
Subtotal $778,000 $350,000 $520,000 $470,000 $450,000
Technology
Police Headquarters Jail Interlock Upgrade $99,420 - - - -
SCADA Improvements $200,000 $110,000 $20,000 $20,000 $20,000
Subtotal $299,420 $110,000 $20,000 $20,000 $20,000
Continued on next page.
176
Water Main & Sanitary Sewer Systems
Capacity Management Operations & Maintenance $54,000 $64,000 $42,000 $19,000 $39,000
Lift Station Repair & Rehabilitation $900,000 $440,000 $300,000 $300,000 $300,000
Pump House Repairs & Security Improvements $550,000 $400,000 $440,000 $220,000 $220,000
Villagewide Sanitary Sewer Replacement $1,210,000 $485,000 $485,000 $435,000 $400,000
Villagewide Water Main Replacement $1,070,000 $1,575,000 $1,540,000 $1,500,000 $1,000,000
Subtotal $3,784,000 $2,964,000 $2,807,000 $2,474,000 $1,959,000
Total $12,694,303 $9,316,568 $9,130,154 $9,936,000 $9,368,100
Grand Total 2016-2020 $50,445,125
177
Buildings & Grounds Improvements
The Village is responsible for maintaining 23 structures within its corporate boundaries. Village buildings and
grounds must be maintained regularly to remain functional. Village facilities must also periodically be upgraded to
ensure efficient operations. Expenditures in this category historically include projects that:
• Maintain the safety and appearance of Village owned property.
• Maximize the life of facilities.
• Maintain value of facilities through preventative maintenance before they become more
expensive to repair.
• Ensure that any issues affecting health and safety of building occupants are promptly addressed.
The Village’s facilities include:
• Village Hall
• Public Service Center & Salt Dome
• Police Department
• Fire Station Admin, Stations 25, 26, & 27, Fire Training Facility and Classroom Building
• Pump Stations 1, 2, 6, & 7
• BGGC & Arboretum Clubhouses, Halfway Houses, and Maintenance Buildings
• Train Station and Warming Shelters
• Youth Center
Building Replacement – CAFT
Summary: This proposal will fund the replacement of the CAFT training classroom which had an animal
infestation. Once a health analysis was completed, it was also determined that the windows
had been leaking for a number of years and there was a health hazard associated with the
mold growth. The building, which was constructed in 2000, was actually three donated
mobile offices connected together with a wood shell and pitched roof applied. Due to the
construction of the classroom, the classroom was never intended to be a permanent
structure and had an estimated life span of 5 to 10 years. The building was demolished in July
2016 with the intent of building a permanent structure. Building estimates have been
gathered from architects and pre-fabricated building manufacturers which resulted in a
building and contents estimate of $760,000. This cost would be divided by the four (4) CAFT
fire departments with each being responsible for their cost of $188,000. Engineering is being
funded at $70,000 and would also be split.
Budget Impact: This project would be funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 20120 FY 2021 TOTAL
Land
Design Services $ 70,000 $ 70,000
Construction $ 660,000 - - - - $ 660,000
Equipment $ 100,000 - - - - $ 100,000
Contingency $ 20,000 -$188,000 -$188,000 -$188,000 - ($ 544,000)
Sub-Total $ 850,000 -$188,000 -$188,000 -$188,000 $ 0 $ 286,000
Category: Facilities Maintenance
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2017
Project Coordinator: Fire
179
Flooring Capital Replacement Projects
Summary: This category covers planned flooring, both carpet and tile, replacements within Village
facilities. On average the carpet to be replaced will be 4 – 6 years past the date it was
scheduled to be replaced. 2017 flooring projects include Police HQ ($95,340), Fire Station #25
($16,940) and Public Service Center ($48,447). The oldest carpeting is from 1995 in Police,
with the Public Service Center and Fire Station #25 dating back to 2001.
Prior to 2017, this CIP item was specifically for carpeting, but several tile flooring issues arose
in FY 2016 and a decision was made to include all types of flooring in this replacement
schedule.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 32,452 $ 166,595 $199,047
Actual Expenditures $ 0 $ 0 $ 0 $ 32,452 $ 44,932 $ 77,384
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land Design Services Construction $ 159,033 $ 82,768 $ 98,154 - - $339,955
Equipment Contingency Sub-Total $ 159,033 $ 82,768 $ 98,154 - - $339,955
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2015
Project Coordinator: Public Works
180
Fire Sprinkler System – Fire Station 27
Summary: This proposal will address the need for the first floor of Fire Station 27 to have a fire sprinkler
system installed. The basement area of the fire station has been retrofitted with a fire
sprinkler system and this project will complete the retrofit for the entire fire station.
Budget Impact: This project would be funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services - - - - $ 1,000 $ 1,000
Construction - - - - $ 59,000 $ 59,000
Equipment - - - - $ 40,000 $ 40,000
Contingency
Sub-Total $ 0 $ 0 $ 0 $ 0 $ 100,000 $ 100,000
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2016
Project Coordinator: Fire
181
Buffalo Grove Golf Course Clubhouse Improvements
Summary: This proposal will address the need for renovations within the clubhouse itself, coinciding
with the restaurant improvements, but focusing on the golf specific areas including the main
hall, pro shop, and restroom areas that support golf operations. The clubhouse was originally
opened in 1989 and has only received cosmetic updates in the past 27 years.
Items specifically planned for 2017 include restoring and remodeling the restaurant and bar
portion of the building.
Budget Impact: This project would be funded through the Golf reserve for equipment.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 10,000 - - - - $ 10,000
Construction $100,000 $ 50,000 $ 50,000 - - $200,000
Equipment - - - - - -
Contingency
Sub-Total $110,000 $ 50,000 $ 50,000 $ 0 $ 0 $ 210,000
Category: Buildings & Grounds Improvements
Fund: Golf Reserves
Account Number:
Initial Proposal Date: 2016
Project Coordinator: Golf
Buffalo Grove Golf Course Restaurant Improvements
Summary: This project will support the build out and mechanical renovation needs for remodel of the
Village Bar and Grill restaurant space. While the tenant will renovate the soft areas, the
Village needs to update building mechanicals (plumbing, wall and flooring repairs, electrical,
and HVAC) before the restaurant and banquet areas are improved.
Budget Impact: This project would be funded through the Golf reserve for equipment.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 30,000 - - - - -
Construction $300,000 - - - - -
Equipment $ 20,000 - - - - -
Contingency
Sub-Total $350,000 $ 0 $ 0 $ 0 $ 0 $ 0
Category: Buildings & Grounds Improvements
Fund: Golf Reserves
Account Number:
Initial Proposal Date: 2016
Project Coordinator: Golf
183
Golf Course Improvements
Summary: This project will include reconstruction and restoration efforts on the golf courses. In 2017,
the 5th tee box at Arboretum requires reconstruction ($25,000). In 2018 through 2020, a three
year project to restore all 69 sand traps at Arboretum is being programmed.
Budget Impact: This project would be funded through the Golf reserve for equipment.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services - - - - - -
Construction $ 25,000 $100,000 $100,000 $ 75,000 - $300,000
Equipment - - - - - -
Contingency
Sub-Total $ 25,000 $100,000 $100,000 $ 75,000 $ 0 $300,000
Category: Buildings & Grounds Improvements
Fund: Golf Reserves
Account Number:
Initial Proposal Date: 2016
Project Coordinator: Golf
184
Golf Course Irrigation Repairs
Summary: This project will support irrigation repairs and piping replacements at both golf course
facilities. For 2017, a section of irrigation pipe crossing the creek and feeding the back nine at
BGGC is programed for replacement ($25,000). In addition, a variable frequency drive (VFD) is
needed for Arboretum golf course ($8,000). Additional work to irrigation pumps and control
systems is being programmed through 2019.
Budget Impact: This project would be funded through the Golf reserve for equipment.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $ 25,000 - - - - $ 25,000
Equipment $ 8,000 $ 25,000 $ 55,000 - - -
Contingency
Sub-Total $ 33,000 $ 25,000 $ 55,000 $ 0 $ 0 $ 113,000
Category: Buildings & Grounds Improvements
Fund: Golf Reserves
Account Number:
Initial Proposal Date: 2016
Project Coordinator: Golf
HVAC Unit Replacements
Summary: This project will provide for HVAC unit replacements at various Village facilities. The Village
maintains 61 HVAC units in total, and more than half are currently exceeding their 18 year life
expectancy. Specific replacements identified for 2017 include 3 units at Police Headquarters
which are original to the building (Installed 1989 – deferred 9 years), a unit at Fire Station 27
(Installed 1991 – deferred 7 years), and the unit at the Public Service Center ($350,000 -
Installed 2002). In all, 7 units have been identified for priority replacement. Units are also
prioritized based on their ongoing repair history and difficulty in acquiring replacements
parts, not strictly on age.
Budget Impact: This project would be funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 120,000 $ 120,000
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 92,237 $ 92,237
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $ 550,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $1,030,000
Equipment
Contingency
Sub-Total $ 550,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $1,030,000
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2015
Project Coordinator: Public Works
Increase Apparatus Door Height – Fire Station 25
Summary: This proposal is to address the need for an increased apparatus door height at Fire Station 25.
Currently only one bay (front and back doors) has enough clearance to allow Tower 25 to be
parked inside of the apparatus bay. Should Tower 25 need to be placed in another apparatus
bay for mechanical reasons, the only option is to store it at Public Works, if the space is
available.
Budget Impact: This project would be funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 20,000 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 20120 FY 2021 TOTAL
Land
Design Services $ 8,000 - - - - $ 8,000
Construction $ 28,000 - - - - $ 28,000
Equipment $ 12,000 - - - - $ 12,000
Contingency
Sub-Total $ 48,000 $ 0 $ 0 $ 0 $ 0 $ 48,000
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2016
Project Coordinator: Fire
187
Municipal Parking Facility Maintenance
Summary: This program provides for the routine sealing, restriping, and reconstruction of municipal lots.
The 2017 planned improvements includes lots at the Metra train station ($60,000), the
Buffalo Grove and Arboretum Golf Courses ($20,000), the Public Service Center ($155,000),
and at Fire Station #26 ($19,000).
Budget Impact: This project is funded through the General Fund’s operating revenues for station #26 and
Public Services Center, the Metra Parking Lot Fund and Arboretum Golf Fund will fund
their facility maintenance.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$65,000 $74,100 $110,000 $170,000 $125,000 $544,100
Actual Expenditures $65,000 $67,000 $110,000 $116,828 $125,000 $483,828
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $254,000 $125,000 $125,000 $125,000 $125,000 $754,000
Equipment
Contingency
Sub-Total $254,000 $125,000 $125,000 $125,000 $125,000 $754,000
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.40
Initial Proposal Date: Ongoing
Project Coordinator: PW-Engineering
188
Repurpose Administration Area – Fire Station 26
Summary: With the reorganization of the Fire Prevention Bureau and assignment of the Fire Inspector to
Village Hall, the area formerly occupied by the Fire Prevention Bureau is in need of being
repurposed to meet the current work space and storage needs of the Fire Department. This
proposal includes creating a reception area, an EMS room for walk in patients, additional
storage for EMS and Haz-Mat supplies and a work area for the part time Public Education
Officer and painting of the entire administrative office area.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 20120 FY 2021 TOTAL
Land
Design Services $ 3,000 - - - - $ 3,000
Construction $ 14,000 - - - - $ 14,000
Equipment $ 8,000 - - - - $ 6,000
Contingency
Sub-Total $ 25,000 $ 0 $ 0 $ 0 $ 0 $ 25,000
Category: Facilities Maintenance
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2016
Project Coordinator: Fire
189
Roof Capital Replacement Projects
Summary: This category covers full roof replacements on Village owned buildings. For 2017, work is
planned to include Village Hall ($107,800), Metra Station ($21,000), Pump Station #6
($21,000), Fire Station 25 ($42,000), BGGC Maintenance Building ($86,800), and Well House
#1 ($19,250).
Prior to 2014 these projects were not programmed in the CIP. Maintenance and repair work
remains in the Building Maintenance operating budget within Public Works, and is separate
from these replacements. Replacement projects were identified during the 2014 roof
inspection reports prepared by Industrial Roofing Services.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $225,000 $ 0 $ 286,825 $ 511,825
Actual Expenditures $ 0 $ 0 $ 0 $197,766 $ 72,000 $ 269,766
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $ 276,850 $ 429,800 - - $ 79,100 $ 785,750
Equipment
Contingency
Sub-Total $ 276,850 $ 429,800 - - $ 79,100 $ 785,750
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.40
Initial Proposal Date: 2014
Project Coordinator: Building Maintenance
190
Exterior and Streetscape Improvements – Fire Station 25, 26, 27
Summary: This proposal will address the current condition of the exterior landscaping at all three fire
stations. A comprehensive landscaping plan that takes into consideration ongoing
maintenance and screening needs from the nearby residents along with the replacement of
the current fire station signs will need to be completed. The current signs are made of wood,
in general poor condition and are placed parallel to the street which makes it difficult for
passing motorists to identify the fire station location until they are past the fire station
entrance. This proposal provides for the replacement of all three fire station signs with
masonry signs oriented perpendicular to the street.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 20120 FY 2021 TOTAL
Land $ 10,000 $ 10,000 $ 10,000 - - $30,000
Design Services $ 5,000 $ 5,000 $ 5,000 - - $15,000
Construction $ 13,000 $ 13,000 $ 13,000 - - $39,000
Equipment
Contingency
Sub-Total $ 28,000 $ 28,000 $ 28,000 $ 0 $ 0 $84,000
Category: Buildings and Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2016
Project Coordinator: Fire
191
Fire Station 26 – Brick Fascia Repair
Summary: This project will complete repairs of the brick fascia that is separating from the block wall in
the southwest corner of the apparatus bay at Fire Station 26. There are also louvers that are
no longer used and the steel lintel above these openings has shifted due to the weight of the
brick fascia above. These deficiencies were identified during the 2014 facility needs analysis
completed by FGM Architects.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 4,000 - - - - $ 4,000
Construction $ 20,000 - - - - $ 20,000
Equipment
Contingency
Sub-Total $ 24,000 $ 0 $ 0 $ 0 $ 0 $ 24,000
Category: Buildings and Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2017
Project Coordinator: Fire
192
Village Campus Long Range Planning
Summary: Several buildings on the Village Campus are nearing the end of their useful life, where major
renovations and mechanical system replacements begin to reach a significant percentage of
the estimated replacement cost of the facilities. When factoring in the current space needs
and business formats that have changed since the buildings were built, it is prudent to begin
analyzing the cost-benefit for extensive rehabilitation versus new construction. For example,
40 years is the higher end of the life spectrum for the occupancy load of Village Hall
(Originally built in 1970) or the industrial load of Public Works (Originally built in 1976). This
item is requested in order to begin long term planning of the Village Campus as an asset.
Future projects and improvements will be identified as part of the plan.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 100,000 - - - - $ 100,000
Construction
Equipment
Contingency
Sub-Total $ 100,000 $ 0 $ 0 $ 0 $ 0 $ 100,000
Category: Buildings and Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2017
Project Coordinator: OVM
193
Village Gateway Feature (Milwaukee Ave/Deerfield Ave)
Summary: As part of the Woodman’s project located at the northwest corner of Deerfield Parkway and
Milwaukee Avenue, staff is proposing to replace the existing Village entrance sign with a new
“gateway” feature which may include a new sign, landscaping and pedestrian amenities.
While Woodman’s will own the parcel, the Village will obtain an easement to allow the
construction and maintenance of the new feature. Staff is proposing to complete a design in
2017 (landscaping design and engineering) and begin construction in 2018.
Budget Impact: This project is funded through the General Fund’s operating revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual
Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 25,000 - - - - $ 25,000
Construction - $ 50,000 $ 25,000 - - $ 75,000
Equipment
Contingency
Sub-Total $ 25,000 $ 50,000 $ 25,000 $ 0 $ 0 $ 100,000
Category: Buildings & Grounds Improvements
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2017
Project Coordinator: Community Development
194
Street, Sidewalk & Bikepath Maintenance
The Village roadway network is comprised of state, county, and municipal roadways. Each roadway carries with it
a function such as arterial, collector or local streets. The break-down is as follows:
Municipal Roadways 117.70 miles
State Roadways 8.95 miles
Cook County Roadways 7.25 miles
Lake County Roadways 10.82 miles
Total 144.72 miles
Municipal roadways are evaluated every year and recommendations for the next several years of street projects
are developed. The projects involve traditional maintenance and rehabilitation of local streets based upon a
defined service life. The defined service life is designed to maintain quality surface conditions and avoid more
costly roadway rebuilds. Due to funding issues, since 2008 not all streets identified for maintenance have been
repaired. Cuts in the program were necessary given the current economic climate and funding limitation both
internally and externally, from the State of Illinois, due to reduced motor fuel tax revenues. A recent bond issue
allowed for a large catch-up project in 2016. The majority of work to be performed during the 2017 construction
season will be for the rehabilitation of street surface and curb/gutter along various identified local streets as well
as a patching, crack sealing, and a pavement rejuvenation program designed to extend the life of various streets.
The Village has committed $19.6 million dollars to the rebuild, repair, and maintenance of streets since 2012.
The following streets were identified from the results of the pavement inspection program and are scheduled for
repair in 2017 depending upon funding availability:
Street Miles Street Miles Caren Drive 0.51 Gail Court 0.05 Caren Court 0.07 Green Knolls Drive 0.50 Checker Drive 0.04 Ronnie Drive 0.36 Gail Drive 0.51 TOTAL 2.06
The Village of Buffalo Grove recognizes the need to have a network of pedestrian and mixed-use paths throughout
the community. The Village currently maintains 224 miles of concrete sidewalks and bikeways. The Village
actively pursues grant funding to expand or improve the current system and has created an ad-hoc bike path
committee to develop suggestions for future improvements.
195
Annual Street Maintenance
Summary: The annual street maintenance and rehabilitation program is covered in each year’s CIP. The
Village streets are reviewed annually and evaluated for all types of maintenance or
improvement.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues, bond proceeds, and a portion of home rule sales tax fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$1,700,000 $5,950,000 $2,250,000 $1,800,000 $8,000,000 $19,700,000
Actual Expenditures $4,078,000 $5,684,477 $2,014,665 $1,688,228 $8,000,000 $21,465,370
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $450,000 $450,000 $450,000 $450,000 $450,000 $2,250,000
Construction $3,600,000 $3,550,000 $3,550,000 $3,550,000 $3,550,000 $17,800,000
Equipment
Contingency
Sub-Total $4,050,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $20,050,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Streets
Account Number: 160.75.560.20
Initial Proposal Date: Ongoing
Project Coordinator: PW-Engineering
E
Collector Route Maintenance and Rehabilitation Program
Summary: The Collector Route Maintenance and Rehabilitation Program is being proposed in the 2017
CIP in order to separate collector street maintenance from the Annual Street Maintenance
Program. These Village streets have been identified by the Illinois Department of
Transportation as Collector Routes due to their width and amount of traffic. Federal funding
is available at up to 80% reimbursement for design and construction as part of the Federal
process. Currently, Brandywyn Lane and Thompson Boulevard are in design for anticipated
2020 and 2021 construction.
Budget Impact: These projects are funded through an internal transfer from the General Fund’s operating
revenues, bond proceeds, and a portion of the home rule sales tax fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$0 $0 $0 $0 $0 $0
Actual Expenditures $0 $0 $0 $0 $0 $0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 300,000 $ 300,000 $ 300,000 $ 650,000 $ 650,000 $ 2,200,000
Construction - - - $10,000,000 $10,000,000 $20,000,000
Equipment
Contingency - -$ 120,000 -$120,000 -$8,400,000 -$8,400,000 -$17,040,000
Sub-Total $ 300,000 $ 180,000 $ 180,000 $2,250,000 $2,250,000 $ 5,160,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Streets
Account Number: 160.75.560.20
Initial Proposal Date: 2017
Project Coordinator: PW-Engineering
197
Dundee Road Median Improvements
Summary: This project would continue improvements to the street scape along the Dundee Road
corridor through the addition of landscaped medians.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $40,000 $40,000 $40,000 $120,000
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $40,000 $40,000 $40,000 $40,000 $40,000 $200,000
Equipment
Contingency
Sub-Total $40,000 $40,000 $40,000 $40,000 $40,000 $200,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Streets
Account Number: 160.75.560.20
Initial Proposal Date: 2013
Project Coordinator: PW-Engineering
198
Dundee Road and Buffalo Grove Road Intersection
Summary: The Illinois Department of Transportation is planning to add right turning lanes on the
northwest and northeast corners of the intersection in 2017 to improve the intersection
performance. The Village is required to pay for the local improvements such as moving or
replacing the Village owned utilities and street lights.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$0 $0 $0 $0 $150,000 $0
Actual Expenditures $0 $0 $0 $0 $0 $0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $80,000 - - - - $80,000
Equipment
Contingency
Sub-Total $80,000 - - - - $80,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Streets
Account Number: 160.75.560.20
Initial Proposal Date: 2015
Project Coordinator: PW-Engineering
199
Lake Cook Road Improvement
Summary: The Cook County Highway and Transportation Department is planning on improving Lake
Cook Road from Lexington Drive to Raupp Boulevard. The design is anticipated to be
completed in 2017 with construction expected to begin in 2018. The Village is responsible for
a local share of the cost for such items as pedestrian facilities, street lights, and utility
relocations.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$0 $0 $113,000 $113,000 $50,000 $276,000
Actual Expenditures $0 $0 $63,000 $5,000 $50,000 $118,000
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 50,000 - - - - $ 50,000
Construction - $225,000 $225,000 $225,000 $0 $675,000
Equipment
Contingency
Sub-Total $ 50,000 $225,000 $225,000 $225,000 $0 $725,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Streets
Account Number: 160.75.560.20
Initial Proposal Date: 2008
Project Coordinator: PW-Engineering
200
Raupp Boulevard Bridge Reconstruction
Summary: This project covered the evaluation, design and construction of needed improvements to the
Raupp Boulevard Bridge. The construction was completed in 2016 and the project paperwork
involved in the Federal grant closeout process is expected to last into 2017. Significant
funding (80%) was provided by the Highway Bridge Replacement and Rehabilitation Program
administered by the USDOT Federal Highway Administration for the majority of the project.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$32,000 $40,000 $40,000 $392,000 $60,000 $564,000
Actual Expenditures $6,272 $40,297 $40,000 $834,431 $0 $981,000
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $60,000 - - - - $60,000
Construction
Equipment
Contingency
Sub-Total $60,000 - - - - $60,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Facilities
Account Number: 150.75.560.30
Initial Proposal Date: 2011
Project Coordinator: PW-Engineering
201
Annual Sidewalk/Bike Path Maintenance
Summary: Annual sidewalk and bike path maintenance and rehabilitation program. In FY 2016 new
pedestrian facility improvements include repairing sidewalk in the northeast and eastern
sections of the Village.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$325,000 $100,000 $325,000 $325,000 $325,000 $1,400,000
Actual Expenditures $214,500 $93,936 $422,421 $242,094 $250,000 $1,222,951
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $325,000 $325,000 $325,000 $325,000 $325,000 $1,625,000
Equipment
Contingency
Sub-Total $325,000 $325,000 $325,000 $325,000 $325,000 $1,625,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: General Fund
Account Number: 100.55.10.535.05
Initial Proposal Date: Ongoing
Project Coordinator: PW- Engineering
202
Weiland Road/Prairie Road Improvement
Summary: The Lake County Department of Transportation is planning on improving Weiland Road and
Prairie Road from Route 22 to Lake Cook Road. The design is anticipated to be completed in
2017 with construction expected to begin in 2018. The Village is responsible for a local share
of the cost for such items as pedestrian facilities, street lights, and utility relocations.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$235,000 $100,000 $0 $0 $0 $335,000
Actual Expenditures $299,012 $100,452 $0 $0 $0 $399,464
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $50,000 - - - - $50,000
Construction - $300,000 $500,000 - - $800,000
Equipment
Contingency
Sub-Total $50,000 $300,000 $500,000 $0 $0 $850,000
Category: Street, Sidewalk & Bike Path Maintenance
Fund: Capital Projects - Streets
Account Number: 160.75.560.20
Initial Proposal Date: 2008
Project Coordinator: PW-Engineering
Storm Sewer System
The Village of Buffalo Grove maintains a piped network of 180 miles of storm sewer, one storm water lift station at
Jackson Drive, and several miles of creeks and streams. While most periodic maintenance and cleaning efforts are
included in the Public Works Drainage Section operating budget, system repairs are being included in the CIP due
to the size and scope of necessary repairs.
Repair locations are identified through the annual Storm Sewer Televising program. The program allows a
televised inspection of 10% of the Village’s storm sewers each year. Tapes are then reviewed by engineering staff
and repair recommendations are grouped by point repair, sewer lining, or pipe replacement.
In the past, most Storm Sewer repairs have been handled by in-house Public Works staff or in conjunction with
scheduled street maintenance. As infrastructure ages, the list of identified repairs has increased. A contractual
repair contract will be necessary and repairs will be addressed in order of priority.
Beginning in 2016, a Storm Water Utility Fee was established in order to provide a separate utility funding source
for storm water work. Previously, work was charged to the General Fund. It is anticipated that the storm sewer
system repair program will be an ongoing need.
204
Storm Water System Upgrades and Repairs
Summary: This program provides for storm sewer lining, point repairs or replacements at priority
locations within the Village’s storm sewer network as identified through the Annual Storm
Sewer Televising Inspection Program ($200,000). Funding is also being requested to
add/repair drainage improvements to village streets in conjunction with the Annual Street
Maintenance Program ($250,000). Funding is being requested for a streambank stabilization
project within the Buffalo Creek Nature Preserve ($263,000). The Village is applying for a 319
Grant to cover $170,000 of the project cost. Funding is being requested to perform a GPS
inventory of all pipes, catch basins, streams, detention basins, and related infrastructure for
the purposes of quantifying the system and providing a long-range capital replacement
program ($15,000).
The Village of Buffalo Grove is responsible for the cost to relocate storm sewers during major
road improvements by other jurisdictions. The estimated cost to relocate sewers during the
Lake Cook Road project is $20,000 in 2018, 2019, and 2020. The estimated cost for Weiland
Road project is estimated to be $50,000 in 2018 and 2019.
Budget Impact: This project is funded through the Village’s Storm Water Utility Fee.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$0 $200,000 $200,000 $200,000 $330,000 $930,000
Actual Expenditures $0 $133,084 $200,000 $250,000 $330,000 $913,084
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $65,000 - - - - $65,000
Construction $713,000 $520,000 $520,000 $470,000 $450,000 $2,673,000
Equipment
Contingency - -$170,000 - - - -$170,000
Sub-Total $778,000 $350,000 $520,000 $470,000 $450,000 $2,568,000
Category: Storm Sewer
Fund: Storm Water Utility Fund
Account Number: 100.55.25.560.40
Initial Proposal Date: 2013
Project Coordinator: PW-Engineering
Technology
The Village of Buffalo Grove’s Information Technology (IT) group is responsible for maintenance of local and wide
area networks that facilitate effective interdepartmental communication among Village offices and facilities. The
Village joined the Government Information Technology Consortium (GovITC) in 2014. The employees of the
Consortium who work in Buffalo Grove report to the Deputy Village Manager and currently maintain the entire
Village network including:
• 50 Virtual Servers
• 230+ Desktop and Mobile Workstations
• Approximately 100 Printers and Specialty Devices
The backbone of the Village’s data systems is a redundant wide area network comprised of fiber optic cable and
secure wireless transmission. This network links the data systems of three fire stations, two golf courses, Police
headquarters, Public Works, and Village Hall.
Police Headquarters Jail Interlock Upgrade
Summary: The door control interlock system for the jail has failed on several occasions. The system and
parts have not been manufactured in more than 10 years causing extreme difficulty in
obtaining repair parts. This system is governed and inspected by the Illinois Department of
Corrections.
Budget Impact: This project is funded through an internal transfer from the General Fund’s operating
revenues.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 30,075 $ 30,075
Actual Expenditures $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services
Construction $ 99,420 - - - - $ 99,420
Equipment
Contingency
Sub-Total $ 99,420 $ 0 $ 0 $ 0 $ 0 $ 99,420
Category: Technology
Fund: Capital Projects - Facilities
Account Number: 150.75.560.50
Initial Proposal Date: 2014
Project Coordinator: Police
207
SCADA Improvements
Summary: Implement recommended improvements as detailed in the SCADA System Master Plan. The
main goal for 2017 is to maintain reliable radio communications to the lift station sites for
control and telemetry purposes. Work also continues to update software and hardware
within the SCADA system in order to update security and alarming functionality, and replace
key components which are no longer serviceable due to obsolescence.
Budget Impact: This program is funded by the Water & Sewer Fund Reserves.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $77,000 $85,800 $200,000 $200,000 $562,800
Actual Expenditures $ 0 $ 0 $129,042 $25,000 $180,000 $334,042
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $20,000 $10,000 - - - $30,000
Construction
Equipment $180,000 $100,000 $20,000 $20,000 $20,000 $340,000
Contingency
Sub-Total $200,000 $110,000 $20,000 $20,000 $20,000 $370,000
Category: Technology
Fund: Water & Sewer
Account Number: 170.55.35.560.60
Initial Proposal Date: 2012
Project Coordinator: Public Works
Water Main & Sanitary Sewer Systems
The Village of Buffalo Grove’s oldest water main was constructed in 1929 with the majority, approximately 50%, of
water main put into place between 1983 and 1996. Currently, the water main system has 181 linear miles of water
main and has a replacement value of approximately $773 million. Other water system features include:
• 2,475 Hydrants
• 1,900 Valves
• 4 Pump Houses with storage reservoirs and back-up deep wells
Due to the relatively young age of the water system, between 1993 and 2010 the only major capital expense was
$229,527 for the St. Mary’s Parkway water main replacement. In the most recent five year period between 2012
and 2016, there were $2,474,489 in capital expenditures related to water system replacements and
improvements.
The Village of Buffalo Grove’s sanitary sewer system is a combination of gravity lines, force mains, and lift stations.
There are 134.20 miles of gravity sewer and 5.07 miles of force main. Currently, there are 12 sanitary sewer lift
stations in operation (6 in Cook County and 6 in Lake County).
All municipal waste is conveyed through Village owned and maintained sanitary sewer mains. The wastewater is
then routed to either Lake County Public Works or Midwest Water Reclamation District (Cook County).
Expenditures in this category historically include repairs and reliability enhancements to the water and wastewater
systems.
Capacity Management Operations & Maintenance (CMOM)
Summary: On July 10, 2014, MWRD adopted Article 8 of the Watershed Management Ordinance (WMO) that
outlines the requirements of the new Inflow/Infiltration Control Program (IICP) that applies to all
separate sanitary sewer systems tributary to MWRD. These requirements are essentially a revision
and update of the MWRD’s Operation and Maintenance Requirements as released in 1989 as part
of the Sanitary Sewer Evaluation Survey (SSES). Per the MWRD guidance document, the primary
purpose of the IICP is to reduce sanitary sewer overflows (SSOs) and basement backups (BBs).
There is a minimum level of requirements for all communities with additional requirements where
SSOs and BBs occur. The IICP is split into two program requirements; a Short Term Program and a
Long Term Program. The requirements of the Short Term Program are to be met by the end of
2019. The Long Term Program then starts in 2020 and continues in perpetuity or until MWRD
develops a program to replace it.
Budget Impact: This program is funded by the Water and Sewer Fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Actual Expenditures $ 0 $ 0 $ 0 $ 9,600 $ 5,700 $ 15,300
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 54,000 $ 64,000 $ 42,000 $ 19,000 $ 39,000 $218,000
Construction
Equipment Contingency $ 54,000 $ 64,000 $ 42,000 $ 19,000 $ 39,000 $218,000
Category: Water Main & Sanitary Sewer
Fund: Water & Sewer Fund
Account Number: 170.55.36.560.70
Initial Proposal Date: 2017
Project Coordinator: Public Works
Lift Station Repair & Rehabilitation Program
Summary: This program provides for the replacement of the Golfview Lift Station ($730,000), and other
required work identified at the Village’s 12 lift station sites, such as condition evaluations,
pump repairs, cathodic protection system renovations, maintenance lift repairs, and
contractual painting.
Budget Impact: This program is funded by the Water & Sewer Fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$300,000 $780,000 $530,000 $560,000 $560,000 $2,730,000
Actual Expenditures $48,898 $976 $530,000 $363,432 $220,000 $1,163,306
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 80,000 $ 40,000 $ 30,000 $ 30,000 $ 30,000 $ 210,000
Construction $ 800,000 $ 400,000 $ 270,000 $ 270,000 $ 270,000 $2,010,000
Equipment $ 20,000 - - - - $ 20,000
Contingency
Sub-Total $ 900,000 $ 440,000 $ 300,000 $ 300,000 $ 300,000 $2,240,000
Category: Water Main & Sanitary Sewer
Fund: Water & Sewer Fund
Account Number: 170.55.36.560.70
Initial Proposal Date: 2001
Project Coordinator: Public Works
211
Pump House & Security Improvements
Summary: This program incorporates pump house repair projects identified in the 2008 Comprehensive
Water Study Update and improvements identified in the federally mandated vulnerability
study.
In 2017, brick fascia repairs and access hatch security improvements, along with other minor
pump house site improvements, are scheduled. Some expenses from the improved electrical
feed to station 7 are planned to carry over. Well maintenance at sites 1 & 2 is programmed
for completion in 2018 and 2019.
Budget Impact: This program is funded by the Water & Sewer Fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$600,000 $610,318 $550,000 $550,000 $550,000 $2,860,318
Actual Expenditures $ 0 $17,209 $300,000 $400,000 $350,000 $1,067,209
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 50,000 $ 40,000 $ 40,000 $ 20,000 $ 20,000 $170,000
Construction $500,000 $400,000 $400,000 $200,000 $200,000 $1,700,000
Equipment
Contingency
Sub-Total $550,000 $400,000 $440,000 $220,000 $220,000 $1,830,000
Category: Water Main & Sanitary Sewer
Fund: Water & Sewer Fund
Account Number: 170.55.35.560.60
Initial Proposal Date: 2010
Project Coordinator: PW-Engineering
Villagewide Sanitary Sewer Replacement Program
Summary: This program provides for sanitary sewer lining, point repairs, or replacements at priority
locations. The locations are identified through the Annual Sanitary Sewer Televising
Inspection Program and from reviewing maintenance and flushing reports. The major sewer
interceptor and the associated manholes on Old Arlington Heights Road are planned to be
lined ($600,000) as well as other sanitary manholes in Cook County are planned to be lined
($100,000). The Linden Avenue Force Main is planned for replacement in 2017 ($450,000).
The annual sewer televising program is planned to review approximately 10% of the total
Village’s sanitary sewer system ($100,000) and smoke testing is planned for 2017 ($50,000).
The Village is responsible for the cost of relocating sanitary sewer lines during major road
improvements by other jurisdictions. The estimated cost for sewer line relocation for Lake
Cook Road is $35,000 in 2018, 2019, and 2020. The estimated cost for Weiland Road is
estimated to be $50,000 in 2018 and 2019.
Budget Impact: This program is funded by the Water & Sewer Fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$650,000 $0 $ 700,000 $ 850,000 $1,175,000 $3,375,000
Actual Expenditures $650,000 $0 $ 505,031 $ 652,934 $ 675,000 $2,482,965
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 25,000 - - - - $ 25,000
Construction $1,185,000 $485,000 $485,000 $435,000 $400,000 $2,990,000
Equipment
Contingency
Sub-Total $1,210,000 $485,000 $485,000 $435,000 $400,000 $3,015,000
Category: Water Main & Sanitary Sewer
Fund: Water & Sewer Fund
Account Number: 170.55.36.560.70
Initial Proposal Date: 2012
Project Coordinator: PW-Engineering
213
Villagewide Water Main Replacement Program
Summary: This program provides for water main replacements at priority locations in older portions of
the Village as identified through Water Service Interruption Reports. Projects have been
identified at several locations within the Village. A total of approximately 3,000 feet is
anticipated for replacement every year. The Village is responsible for the cost to move water
mains during major road projects of other jurisdictions. The local share for the intersection of
Buffalo Grove Road and Dundee Road is $70,000 in 2017. The estimated cost for Lake Cook
Road is $500,000 in 2018, 2019, and 2020. The estimated cost for Weiland Road is estimated
to be $75,000 in 2018 and $40,000 in 2019.
Budget Impact: This program is funded by the Water & Sewer Fund.
5 Year Expenditure History
Budgeted Amount FY 2012 FY 2013 FY 2014 FY 2015 Estimated TOTAL FY 2016
$0 $160,000 $1,376,000 $850,000 $500,000 $2,886,000
Actual Expenditures $0 $153,150 $1,566,560 $154,779 $600,000 $2,474,489
5 Year Projected Expenditures
Expense Category FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 TOTAL
Land
Design Services $ 75,000 $ 100,000 $ 100,000 $ 100,000 $ 75,000 $ 450,000
Construction $ 995,000 $1,475,000 $1,440,000 $1,400,000 $ 925,000 $6,235,000
Equipment
Contingency
Sub-Total $1,070,000 $1,575,000 $1,540,000 $1,500,000 $1,000,000 $6,685,000
Category: Water Main & Sanitary Sewer
Fund: Water & Sewer Fund
Account Number: 170.55.35.560.60
Initial Proposal Date: 2012
Project Coordinator: PW-Engineering
214
215
Reserve for Capital Replacement – Vehicles
The Village maintains unique sets of capital equipment for six divisions; Police, Fire, Public Works, Engineering,
Community Development, and Golf Operations. When a vehicle or piece of equipment is acquired, a projected life
span is assigned and amortization costs are calculated based on past performance of vehicles or equipment of
similar class that are in current inventory. Additionally, vehicles and equipment are assessed on an annual basis to
determine whether the projected replacement date is reasonable and units which evaluate favorably for condition,
operational need, cost of operation/maintenance, equipment suitability and parts availability can be deferred
beyond the original replacement date projections.
The Village maintains a capital replacement fund with the intent to fund the amortization on each vehicle. Ideally,
when vehicles are scheduled for replacement the replacement cost will be fully funded with available money.
The 2017 budget includes $518,252 to fund the reserve account in order to minimize a direct impact on the
operating budget as equipment comes up for replacement in the near future. Currently, $6.0 million is in the
reserve account and the table below shows the projected replacement costs through 2023. It is important that the
reserve be funded in order to minimize impact to future budgets.
Finally, the Village Board's approval of the funding reserve does not authorize spending for equipment
replacement. Each replacement vehicle or equipment purchase must go through the procurement process
including Board authorization to bid and Board award of bid. This ensures that the procurement remains
consistent with the budget and that identified funding is available at the time of purchase.
Planned Capital Reserve Replacements by Department - Vehicles (in dollars)
Department 2017 2018 2019 2020 2021 2022 2023 Subtotal
OVM
-
-
17,557
-
-
-
-
17,557
Fire
1,094,896
633,157
496,298
96,672
866,440
69,418
302,449
3,559,331
Police
130,590
401,339
117,540
50,401
60,117
-
-
759,987
Community
Development
57,000
61,915
19,440
-
-
-
-
138,355
Engineering
25,555
-
-
57,797
-
-
30,717
114,069
Building
Maintenance
132,625
80,515
70,956
49,119
-
10,015
-
343,230
Streets
65,250
636,412
205,126
202,300
-
183,653
-
1,292,742
Forestry
-
627,613
133,639
8,648
-
228,335
-
998,235
Drainage
-
-
-
-
-
391,926
-
391,926
Water
32,625
389,573
189,925
138,749
-
181,140
-
932,012
Sanitary Sewer
20,000
499,394
113,286
-
65,987
-
-
698,667
Central Garage
133,773
-
20,000
-
-
-
153,773
Total
1,558,541
3,463,692
1,363,768
623,686
992,545
1,064,488
333,166
9,399,885
216
The following graph projects the balance of the Reserve for Capital Replacement for Vehicles assuming a yearly
funding level of $600,000. The trend is not as volatile down due to the outsourcing of golf and the equipment that
would have been required to replacement. The Village has many capital vehicle and equipment needs in fiscal year
2018 due to the age and condition of current equipment coupled with deferred purchases due to the increase in
2017 resources dedicated to facility maintenance.
The graph below charts total replacement cost against the capital reserve fund balance. All vehicles have an
estimated replacement value of $16.1 million. The two lines show where the Village was as the budget was
proposed last year (2016 est.) vs the proposed 2017 Budget (2017 est.). Due to the age, use, and required
equipment needed for departments certain items must be replaced sooner than expected which causes a larger
variance in the 2018 and 2019 projected funding. Major equipment in Fire is scheduled to be replaced over the
next 3 years.
-
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
2017 2018 2019 2020 2021 2022 2023
Projected Reserve Balance - Vehicles
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
2016 2017 2018 2019 2020 2021 2022
Projected Funding Ratio
Est 2017
Est 2016
Motor Fuel Tax Fund - 130
Motor Fuel Tax improvements and projects are needed to provide for safety and capacity improvements for Village
roadways. They also provide for the ongoing maintenance and improvement of local Village-owned streets, where
designed and required. Detailed plans and specifications will be prepared for the identified streets including
surface treatments, base repairs and any necessary drainage and curb improvement. Construction will be
performed by a contractor selected through a competitive bidding process with construction engineering to be
performed by a consulting engineer. The Village Engineer will perform administration of the engineering service
and construction contract.
2015 Actual 2016 Est Actual 2017 Budget
Capital Outlay 1,688,228 1,000,000 1,500,000
Total 1,688,228 1,000,000 1,500,000
1,688,228
1,000,000
1,500,000
Total
Motor Fuel Tax Fund
2015 Actual 2016 Est Actual 2017 Budget
217
Revenues
Description 2014
Actual
2015
Actual
2016
Budget
2016
Est Actual
2017
Budget
Fund: 130 - Motor Fuel Tax Fund
Revenues
15 - Other Taxes
410.60 Motor Fuel Tax 1,045,913 1,014,469 1,000,000 1,000,000 1,000,000
15 - Other Taxes 1,045,913 1,014,469 1,000,000 1,000,000 1,000,000
45 - Interest Income
0.00%
450.10 Investment Pool 31 - - - -
45 - Interest Income 31 - - - -
50 - Miscellaneous Revenue
0.00%
465.65 Grants 375,164 - - - -
50 - Miscellaneous Revenue 375,164 - - - -
55 - Operating Transfers
0.00%
460.05 Transfers In 767,602 859,207 - - -
55 - Operating Transfers 767,602 859,207 - - -
0.00%
Fund Total: 130 - Motor Fuel Tax Fund 2,188,710 1,873,676 1,000,000 1,000,000 1,000,000
0.00%
Expenditures
Description 2014
Actual
2015
Actual
2016
Budget
2016
Est Actual
2017
Budget
Fund: 130 - Motor Fuel Tax Fund
Expenditures
75 - Capital Improvement
55 - Capital Outlay
560.20 Streets & Highways 2,083,301 1,688,228 1,000,000 1,000,000 1,500,000
55 - Capital Outlay 2,083,301 1,688,228 1,000,000 1,000,000 1,500,000
50.00%
Fund Total: 130 - Motor Fuel Tax Fund 2,083,301 1,688,228 1,000,000 1,000,000 1,500,000
50.00%
Capital Projects - Facilities Fund – 150
This Fund provides for the accounting of design, acquisition and construction elements of various Village capital
facilities and equipment. The identified projects have been previously planned for as part of the FY 2017 portion of
the Village’s comprehensive Capital Improvement Plan for the FY 2017 through FY 2021. Funding will come from
several sources, most notably the transfer of prior accumulations of unreserved General Fund Balance and Water
and Sewer Fund equity as authorized under current Village use policies.
Budget Summary
CP-Facilities
2015 Actual 2016 Est Actual 2017 Budget
Capital Outlay 2,746,734 1,200,000 1,974,723
Total 2,746,734 1,200,000 1,974,723
Budget Variance
CP-Facilities
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
560.30 Buildings &
Structures 141.98% 1,100,333
Allocation of more facility maintenance and repair
including clubhouse and restaurant remodel at BG Golf
Club.
560.40
Improvements
Other Than
Building
-100.00% (500,000) Reallocation of funds to Building and Structure projects.
560.50 Technology -35.18% (53,966) Reduction of IT projects in FY2017.
2,746,734
1,200,000
1,974,723
Total
Capital Projects - Facilities
2015 Actual 2016 Est Actual 2017 Budget
Revenues
Description 2014
Actual
2015
Actual
2016
Budget
2016
Est Actual
2017
Budget
Fund: 150 - Capital Projects Facilities Fund
Revenues
50 - Miscellaneous
465.90 Miscellaneous
Income - - 500,000 350,000 565,000
50 - Miscellaneous Revenue - - 500,000 350,000 565,000
55 - Operating Transfers
13.00%
460.05 Transfers In 635,217 1,158,644 928,356 850,000 1,875,303
55 - Operating Transfers 635,217 1,158,644 928,356 850,000 1,875,303
102.00%
Revenues Total 635,217 1,158,644 1,428,356 1,200,000 2,440,303
70.85%
Expenditures
Description 2014
Actual
2015
Actual
2016
Budget
2016
Est Actual
2017
Budget
Fund: 150 - Capital Projects Facilities Fund
Expenditures
70.85%
75 - Capital Improvement
55 - Capital Outlay
560.10 Land
Improvements (74,183) 175,721 - - -
560.30 Buildings &
Structures 208,941 834,431 774,970 700,000 1,875,303
560.40
Improvements
Other Than
Building 1,383,234 1,571,952 500,000 350,000 -
560.50 Technology 500,459 164,630 153,386 150,000 99,420
Total: 55 - Capital Outlay 2,018,451 2,746,734 1,428,356 1,200,000 1,974,723
38.25%
Expenditures Total 2,018,451 2,746,734 1,428,356 1,200,000 1,974,723
38.25%
220
Capital Projects – Streets Fund – 160
The elements of this program have been identified and recommended as part of the Village’s comprehensive
Capital Improvement Plan for the period FY 2017 through FY 2021. Proceeds for the street maintenance fund are
funded through transfers from the General Fund.
Budget Summary
CP-Streets
2015 Actual 2016 Est Actual 2017 Budget
Capital Outlay 440,422 1,000,000 350,000
Total 440,422 1,000,000 350,000
Budget Variance
CP-Streets
Line Item Number Description Percent Change Dollar Amount
Change Description of Change
560.20 Streets &
Highways -66.66% (699,727) Reduction in road projects
440,422
1,000,000
350,000
Total
Capital Projects - Streets
2015 Actual 2016 Est Actual 2017 Budget
221
Revenues
Description 2014
Actual
2015
Actual
2016
Budget
2016
Est Actual
2017
Budget
Fund: 160 - Capital Projects Streets Fund Revenues 55 - Operating Transfers
460.05 Transfers In - - 1,049,727 1,015,000 1,537,950
Total: 55 - Operating Transfers - - 1,049,727 1,015,000 1,537,950
46.51%
Revenues Total - - 1,049,727 1,015,000 1,537,950
46.51%
Expenditures
Description 2014
Actual
2015
Actual
2016
Budget
2016
Est Actual
2017
Budget
Fund: 160 - Capital Projects Streets Fund
Expenditures
Department: 75 - Capital Improvement
55 - Capital Outlay
560 Capital Projects - (183,192) - - -
560.20 Streets & Highways (1) 623,614 1,049,727 1,000,000 350,000
Total: 55 - Capital Outlay (1) 440,422 1,049,727 1,000,000 350,000
-66.66%
Expenditure Total (1) 440,422 1,049,727 1,000,000 350,000
-66.66%
222
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Section 7
Enterprise Fund Summary and Detail
Golf Course Fund
Water and Sewer Operating
Refuse Fund
Golf
The Village of Buffalo Grove operates two municipal golf courses. The Arboretum
Club on Half Day Road and the Buffalo Grove Golf Club on Raupp Boulevard.
The Buffalo Grove Golf Club and Arboretum Golf
Funds provide the entire scope of staff and
administrative services necessary to operate the
Buffalo Grove Golf Club and Arboretum Golf Club on
an annual basis. The majority of the services are of a
physical nature in that the programs identified
provide for the efficient and effective operations of
both golf courses. The overall objectives of the
Funds are to maintain the physical quality of two 18-
hole golf courses, a driving range and practice areas
in a manner that is acceptable to the patron and to
enhance the enjoyment of the game. Pro Shop
activities provide support services to the patron in
the form of retail activity.
Golf Course Fees
A conservative increase was budgeted for the Buffalo Grove Golf Club in FY 2017 over the estimated actual of
$14,100, or 1.3 percent. The Buffalo Grove Golf Club is estimated to attain 94.4% of budgeted revenues of
$1,248,569 in FY 2016. In 2016, the total rounds played at Buffalo Grove Golf Club will be 36,000 rounds, which is
just short of the trailing 5-year average of 37,100.
Total golf revenues at the Arboretum Club in 2016 will attain 99.65% of budgeted revenue goal of $1,269,180 The
total rounds played at the Arboretum Club in 2016 will be 30,800 rounds, which is also short of the trailing 5-year
average of 31,000.
For the 2017 season, both the Arboretum and Buffalo Grove Golf Clubs are projecting to host over 68,000 rounds
of golf in which over 27,000 are residential. The Golf Department will be planning for over $2.5 million in revenues
mostly derived through green fee revenues at both golf courses. The projected 2017 expenses for the department
will be $3.1 million, which includes an estimated $470,000 restoration project for the Buffalo Grove Clubhouse.
As an Enterprise Fund, the intent of the golf fee structure, absent additional public funding (i.e. property tax), is to
cover operating expenses, amounts reserved for future capital equipment/facilties replacement, and capital
maintenance and improvement costs.
At the Buffalo Grove Golf Club, the average subidy per round is $16.32. This subsidy factors in the cost of the
clubhouse repairs. When the repairs are complete, holding all factors constant, the subsidy drops to $3.21. The
subsidy is the amount that the Village will transfer out of the General Fund (main operating fund) for each round
played.
At the Arboretum Golf Club, the estimated General Fund subsidy per paid round is $6.96.
The follow chart illustrates that the level of course play under the current fee structure is not financially supporting
all facets of golf operations. In order for both courses to breakeven, an additional 39,471 rounds will need to be
played.
Operating Revenues
Buffalo Grove Golf Club Arboretum Golf Club
Total rounds projected 37,000 31,000
Daily green fees and memberships 713,000 822,000
Merchandise sales 65,000 51,500
Cart, club, and other rental fees 236,700 249,000
Driving range fees 62,000 -
Miscellaneous 500 94,000
Total Operating Revenues 1,077,200 1,216,500
Operating Expenses
Buffalo Grove Golf Club Arboretum Golf Club
Golf Operations (Personal, Operating
Expenses, Maintenance/Repair,
Commodities)
1,021,116 1,101,620
Internal Service Fund Expense 104,269 220,308
Capital Reserve 70,600 55,400
Capital Projects 485,000 55,000
Total Operating Expenses 1,680,985 1,432,328
Profit/Loss Statement
Buffalo Grove Golf Club Arboretum Golf Club
Total Operating Revenue 1,077,200 1,216,500
Total Operating Expense 1,680,985 1,432,328
Profit/(Loss) (603,785) (215,828)
Subsidy per Round (16.32)1 (6.96)2
Breakeven Analysis
Buffalo Grove Golf Club Arboretum Golf Club
Total rounds projected 37,000 31,000
Daily green fees and memberships 713,000 822,000
Revenue per round 19.27 26.52
Additional rounds to offset loss 31,3333 8,138
1The subsidy per round includes $485,000 of capital project cost related to the improvement of the clubhouse. The
subsidy amount related to that improvement is $13.11.
226
2The subsidy per round does not include the annual principal and interest on the $6.2 million bond issuance for the
clubhouse. Those bonds were refinanced as the Series 2010A Bonds and carry an average annual payment of
$400,000 per annum. If the debt were included in the profit/loss statement, the subsidy would be 12.90/round.
3The total amount of additional rounds needed for breakeven includes the $485,000 clubhouse improvement.
Removing that expense from the analysis, the additional amount of rounds needed drops to 6,164.
227
BUFFALO GROVE GOLF CLUB
Golf & Cart Rates 2017
Saturday, Sunday and Holidays
Description Non-Resident Resident of Buffalo Grove
18 Holes $42.00 $34.00
After 2:00 p.m. $29.00 $24.00
After 5:30 p.m. $16.00 $13.00
Special After 5:30 p.m., 1 child 14 or younger is free with each paying adult
Monday through Friday
Description Non-Resident Resident of Buffalo Grove
18 Holes $29.00 $24.00
9 Holes $19.00 $15.50
After 6:00 p.m. $16.00 $13.00
Senior (65 or older) 18 Holes
Junior (18 or younger) $24.00 $20.50
Senior (65 or older) 9 Holes
Junior (18 or younger) $16.00 $14.00
Cart Rates
Power Cart Rates Pull Carts
18 Holes $34.00 (for two riders) $4.00
9 Holes $17.00 (for two riders) $2.00
Driving Range Rates
Full Bucket $7.50 40-45 Range Balls
Warm Up Bucket $3.75 20-25 Range Balls
Range Card $45.00 Includes two free tokens
228
ARBORETUM CLUB OF BUFFALO
GROVE
Golf & Cart Rates 2017
Saturday, Sunday and Holidays
Description Non-Resident Resident of Buffalo Grove
18 Holes $57.00 $47.00
After 2:00 p.m. $36.00 $26.00
After 5:00 p.m. $21.00 $18.00
Special After 5:30 p.m., 1 child 14 or younger is free with each paying adult
Monday through Friday
Description Non-Resident Resident of Buffalo Grove
18 Holes $47.00 $36.00
After 2:00 p.m. $27.00 $21.00
After 5:00 p.m. $20.00 $16.00
9 Holes $26.00 $21.00
Senior (65 or older) 18 Holes
Junior (18 or younger) $31.00 $25.00
Senior (65 or older) 9 Holes
Junior (18 or younger) $20.00 $16.00
Cart Rates
Power Cart Rates Pull Carts
18 Holes $40.00 (for two riders) $5.00
9 Holes $20.00(for two riders) $3.00
229
Department Structure
Deputy Village Manager
Golf Operations
Buffalo Grove Golf Course
Pro Shop
Maintentance
Arboretum Golf Course
Pro Shop
Maintentance
230
2017 Staffing Summary
In 2015, the Golf Department outsourced the golf course maintenance function. The change in staffing is reflected
below:
Golf Operations FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Head Golf Professional 2 0 2 0 2 0
Assistant Golf Professional 1 2 1 2 1 2
Golf Course Attendants- Seasonal 0 15 0 30 0 30
Golf Course Cashier- Seasonal 0 9 0 0 0 0
Golf Course Maintenance Worker- Seasonal 0 14 0 0 0 0
Golf course maintenance worker II 1 0 0 0 0 0
Golf course maintenance worker III 1 0 0 0 0 0
Golf Course starter/ranger- seasonal 0 11 0 0 0 0
Golf Course Superintendent 1 0 0 0 0 0
Horticulturalist 1 0 0 0 0 0
Total 7 51 3 32 3 32
Full & Part-Time Total 58 35 35
Budget Summary
Buffalo Grove Golf Fund
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 374,244 322,168 329,812
Personal Benefits 107,592 94,596 96,748
Operating Expenses 660,939 618,466 637,352
Contractual Services 25,266 15,361 15,373
Repair & Maintenance 29,877 18,800 20,000
Commodities 63,930 28,500 64,000
Other Expenses 33,723 500 500
Capital Outlay 43,126 80,600 555,600
Other financing Uses 13,100 - -
Total 1,351,796 1,178,991 1,719,385
231
Budget Variance
Buffalo Grove Golf Fund
Line Item
Number Description Percent
Change Amount Change Description of Change
500.15 Salaries - Seasonal -16.67% (16,000) Outsourced.
510.02 Telephone -100% (1,500) Moved to internal service
fund (IT).
510.83 Credit Card Fees 20% 5,000 Increase based on
historical trend.
535.35 Facilities Golf Course 75% 3,000 Increase based on prior
year utilization.
535.40 Facilities Irrigation System -20% (1,000) Decrease based on current
year needs.
580.05 All Other Expenses -50% (500) Decrease based on current
year needs.
560.30 Buildings and Structures 234% 468,000 Capital Improvements for
Clubhouse.
1,351,796
1,178,991
1,719,385
Total
Buffalo Grove Golf Course
2015 Actual 2016 Est Actual 2017 Budget
232
Revenue
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 180 - Buffalo Grove Golf Fund
40 - Charges for Services
445.10 Greens Fees 630,964 661,255 655,000 645,000 657,000
445.15 Power Cart Rental 157,610 161,601 162,000 162,000 162,000
445.20 Pull Cart Rental 2,692 3,500 3,500 3,500 3,500
445.25 Driving Range Fees 61,338 62,116 61,500 61,500 62,000
445.30 Memberships & Passes 62,471 62,143 62,500 55,000 56,000
445.35 Merchandise Sales 62,895 64,529 65,000 65,000 65,000
445.40 Sales Tax 5,601 5,791 5,850 5,850 5,850
445.55 Club Rental Fees 1,210 1,140 1,100 1,100 1,200
445.57 Club Storage 365 150 200 150 150
445.60 Rental Income Facility 43,422 34,370 40,000 40,000 40,000
445.65 Rental Income Cell Tower 25,107 21,545 29,500 29,500 30,000
445.70 Utility Reimbursement 27,621 15,478 15,000 15,000 15,000
445.90 Other Revenue 92 (231) - - -
40 - Charges for Services 1,081,389 1,093,389 1,101,150 1,083,600 1,097,700
Percent Change 2017 vs. 2016 Budget -0.31%
50 - Miscellaneous Revenue
465.90 Miscellaneous Income (5,745) 4,451 500 500 500
50 - Miscellaneous Revenue (5,745) 4,451 500 500 500
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Operating Transfers
460.05 Interfund Transfers In 78,745 135,686 146,919 94,891 103,185
55 - Operating Transfers 78,745 135,686 146,919 94,891 103,185
Percent Change 2017 vs. 2016 Budget -29.77%
Fund: 180 - Buffalo Grove Golf Fund 1,154,388 1,233,526 1,248,569 1,178,991 1,201,385
Percent Change 2017 vs. 2016 Budget -3.78%
233
Expense
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 180 - Buffalo Grove Golf Fund
Department: 84 - Golf
10 - Salaries
500.05 Full Time 299,063 244,135 193,980 195,768 197,187
500.10 Part Time 113,392 43,725 49,000 49,000 50,225
500.15 Seasonal 98,905 82,983 96,000 75,000 80,000
500.35 Overtime 13,818 - - - -
500.40 Longevity 2,400 3,400 2,400 2,400 2,400
10 - Salaries 527,577 374,244 341,380 322,168 329,812
Percent Change 2017 vs. 2016 Budget -3.39%
15 - Taxes and Benefits
505.05 Group & Medical Life 43,431 38,371 35,000 35,000 35,000
505.10 Professional Training 460 - 250 250 250
505.15 Dues & Memberships 2,357 1,848 1,900 1,900 1,900
505.25 Uniform Maintenance 1,094 - - - -
505.35 Safety Equipment 247 - - - -
505.75 Employer's Contribution -
FICA 32,669 23,135 21,884 19,975 20,449
505.80 Employer's Contribution -
IMRF 58,269 38,829 32,570 32,799 34,366
505.85 Employer's Contribution
Medicare 7,641 5,410 5,118 4,672 4,783
15 - Taxes and Benefits 146,168 107,592 96,722 94,596 96,748
Percent Change 2017 vs. 2016 Budget 0.03%
25 - Operating Expenses
510.02 Telephone 3,414 699 1,500 700 -
510.04 Travel 238 - - - -
510.10 Maintenance Contracts 3,859 386,291 384,052 384,052 391,733
510.16 Printing 412 331 500 500 500
510.20 Computer Services 7,547 1,668 - - -
510.21 IT Internal Svc Contribution - 17,501 13,961 12,497 15,229
510.28 Audit Fees - - 1,500 1,500 1,500
510.40 Supplies - Office 3,152 3,732 3,500 3,500 3,500
510.49 Supplies - Golf Course 3,578 5,778 7,000 7,000 7,000
510.50 Supplies - All Other 108 - - - -
510.70 Merchandise Purchases 51,814 49,406 50,000 50,000 50,000
510.73 Golf Cart Rental 32,797 33,361 35,000 34,000 35,000
510.76 Driving Range 3,011 132 3,000 2,905 3,000
510.79 Advertising & Promotions 2,758 - 5,000 4,000 5,000
510.83 Credit Card Fees 27,471 38,190 25,000 30,000 30,000
510.85 State Sales Tax 5,522 5,665 5,850 5,850 5,850
535.01 Building Mnt Internal Svc
Cntrb - 118,184 83,037 81,962 86,974
234
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
545.01 Central Garage Internal Svc - - - - 2,066
25 - Operating Expenses 145,679 660,939 618,900 618,466 637,352
Percent Change 2017 vs. 2016 Budget 2.98%
30 - Contractual Services
515.05 Insurance Premium 266 266 266 266 278
515.10 Unemployment Insurance 25,000 25,000 15,000 15,000 15,000
515.15 Insurance Deductible -
Worker's Comp - - 57 57 57
515.20 Insurance Deductible - Non
Wrker's Co 1,556 - 38 38 38
30 - Contractual Services 26,822 25,266 15,361 15,361 15,373
Percent Change 2017 vs. 2016 Budget 0.08%
40 - Repairs and Maintenance
535.20 Buildings & Facilities 20,325 - - 2,800 1,000
535.35 Golf Course 29,546 17,368 4,000 7,000 7,000
535.40 Irrigation System 8,515 - 5,000 2,000 4,000
545.05 Gasoline 26,624 9,350 8,000 7,000 8,000
545.10 Diesel Fuel 569 - - - -
545.15 Automotive Parts 535 - - - -
545.20 Garage Labor 754 - - - -
550.05 Other Department
Equipment 14,407 3,158 - - -
40 - Repairs and Maintenance 101,275 29,877 17,000 18,800 20,000
Percent Change 2017 vs. 2016 Budget 17.65%
45 - Commodities
530.05 Electricity - Facilities 65,115 56,399 55,000 22,000 55,000
530.20 Gas - Facilities 13,398 7,531 9,000 6,500 9,000
530.45 Chemicals and Fertilizers 62,995 - - - -
530.50 Small Equipment Tools &
Hardware 401 - - - -
45 - Commodities 141,908 63,930 64,000 28,500 64,000
Percent Change 2017 vs. 2016 Budget 0.00%
50 - Other Expenses
580.05 All Other Expenses 12,321 939 1,000 500 500
800 Depreciation 32,784 32,784 - - -
50 - Other Expenses 45,105 33,723 1,000 500 500
Percent Change 2017 vs. 2016 Budget -50.00%
55 - Capital Outlay
555.30 Reserve for Capital
Replacement 30,000 30,000 - - -
555.40 Reserve for Technology 1,000 1,000 1,000 1,000 1,000
555.50 Reserve for Buildings 10,000 10,000 10,000 10,000 10,000
555.60 Reserve for Infrastructure - - 59,600 59,600 59,600
560.30 Capital Projects Buildings &
Structures - 2,125 2,000 - 470,000
235
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
560.80 Capital Projects Golf Course 4,591 - 16,000 10,000 15,000
55 - Capital Outlay 45,591 43,126 88,600 80,600 555,600
Percent Change 2017 vs. 2016 Budget 527.09%
65 - Other Financing Uses
570.10 Operating Transfers
Corporate Fund 4,000 13,100 - - -
65 - Other Financing Uses 4,000 13,100 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 84 - Golf 1,184,126 1,351,796 1,242,963 1,178,991 1,719,385
Percent Change 2017 vs. 2016 Budget 38.33%
236
Budget Summary
Arboretum Golf Fund
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 240,881 157,952 168,400
Personal Benefits 51,745 44,889 46,590
Operating Expenses 1,092,629 1,033,135 1,072,995
Contractual Services 27,240 8,265 4,277
Repair & Maintenance 8,123 5,466 8,466
Commodities 53,555 50,000 53,000
Other Expenses 490,005 1,000 1,000
Capital Outlay 30,000 73,400 110,500
Total 1,994,178 1,374,107 1,465,228
Budget Variance
Arboretum Golf Fund
Line Item
Number Description Percent
Change
Amount
Change Description of Change
500.40 Salaries - Longevity -33.33% (200) Employee anniversary.
505.15 Dues & Memberships -12.50% (200) Reduced based on prior year activity.
505.75 Employer's Contribution -
FICA -33.85% (5,343) Director of Golf split between both courses.
505.80 Employer's Contribution -
IMRF -12.61% (1,631) Increase in IMRF rate to 13.89%.
505.85 Employer's Contribution
Medicare -33.84% (1,249) Director of Golf split between both courses.
510.21 IT Internal Svc Contribution 67.24% 4,497 Increase in internal service fund budget.
510.83 Credit Card Fees 15.38% 4,000 Increase in credit card payments.
515.10 Unemployment Insurance -50% (4,000) Reduced due to outsourcing course
maintenance.
515.15 Deductible - Worker's Comp -100% (57) Reduced due to outsourcing course
maintenance
515.20 Deductible - Non Wrker's Co -100% (38) Reduced due to outsourcing course
maintenance.
535.40 Facilities Irrigation System -20% (1,000) Decrease due to current year needs.
530.05 Electricity - Facilities -10% (5,000) Decrease due to historical trend.
530.20 Gas - Facilities -46% (7,000) Decrease due to historical trend.
545.01 Internal Svc Central Garage New 4,852 Allocation of shared internal fund services.
560.80 Capital Projects Golf Course 175% 35,000 Irrigation system repairs.
237
1,994,178
1,374,107 1,465,228
Total
Arboretum Golf Club
2015 Actual 2016 Est Actual 2017 Budget
238
Revenues
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 190 - Arboretum Golf Fund
40 - Charges for Services
445.10 Greens Fees 744,329 767,635 770,000 768,000 772,000
445.15 Power Cart Rental 182,744 192,221 190,000 190,000 190,000
445.20 Pull Cart Rental 848 864 900 1,000 940
445.30 Memberships & Passes 51,670 52,300 49,000 52,925 50,000
445.35 Merchandise Sales 51,546 53,772 51,000 51,000 51,500
445.36 Coupon Sales 29,221 23,860 27,000 21,474 23,000
445.40 Sales Tax 4,125 4,301 4,080 4,080 4,120
445.50 GPS Income - 7,574 - - -
445.55 Club Rental Fees 3,160 2,040 3,000 2,000 3,000
445.56 Locker Room Rental 105 115 200 204 200
445.60 Rental Income Facility 60,468 50,258 55,000 55,000 55,000
445.70 Utility Reimbursement 30,957 20,054 25,000 25,000 25,000
445.90 Other Revenue 5,043 63,095 94,000 94,000 94,000
40 - Charges for Services 1,164,216 1,238,089 1,269,180 1,264,683 1,268,760
Percent Change 2017 vs. 2016 Budget -0.03%
50 - Miscellaneous Revenue
465.65 Grants 17,630 - - - -
50 - Miscellaneous Revenue 17,630 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Operating Transfers
460.05 Interfund Transfers In - 234,840 155,020 109,424 196,468
55 - Operating Transfers - 234,840 155,020 109,424 196,468
Percent Change 2017 vs. 2016 Budget 26.74%
Fund Total: 190 - Arboretum Golf Fund 1,181,845 1,472,929 1,424,200 1,374,107 1,465,228
Percent Change 2017 vs. 2016 Budget
2.88%
239
Expenses
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 190 - Arboretum Golf Fund
Department: 84 - Golf
10 - Salaries
500.05 Full Time 225,454 130,752 50,000 47,552 50,000
500.10 Part Time 142,188 20,545 30,000 30,000 31,000
500.15 Seasonal 84,682 88,184 90,000 80,000 87,000
500.35 Overtime 18,039 - - - -
500.40 Longevity 1,600 1,400 600 400 400
10 - Salaries 471,963 240,881 170,600 157,952 168,400
Percent Change 2017 vs. 2016 Budget -1.29%
15 - Taxes and Benefits
505.05 Group & Medical Life 42,639 10,561 21,000 21,000 21,000
505.10 Professional Training 2,552 - - - -
505.15 Dues & Memberships 2,098 2,134 1,600 1,358 1,400
505.25 Uniform Maintenance 1,424 - - - -
505.35 Safety Equipment 323 100 - - -
505.75 Employer's Contribution - FICA 29,218 14,931 15,784 9,794 10,441
505.80 Employer's Contribution - IMRF 50,075 20,527 12,938 10,446 11,307
505.85 Employer's Contribution
Medicare 6,833 3,491 3,691 2,291 2,442
15 - Taxes and Benefits 135,161 51,745 55,013 44,889 46,590
Percent Change 2017 vs. 2016 Budget -15.31%
25 - Operating Expenses
510.02 Telephone 6,465 540 - 700 -
510.04 Travel 238 - - - -
510.10 Maintenance Contracts - 667,134 672,000 667,248 685,437
510.16 Printing 639 534 700 700 750
510.20 Computer Services 2,907 1,212 - - -
510.21 IT Internal Svc Contribution - 21,368 6,688 5,987 11,185
510.28 Audit Fees - - 1,500 1,500 1,500
510.40 Supplies - Office 5,056 5,283 5,000 5,000 5,000
510.49 Supplies - Golf Course 9,870 13,033 13,500 13,500 14,000
510.70 Merchandise Purchases 39,668 47,978 45,000 47,000 47,000
510.73 Golf Cart Rental 57,638 66,605 55,000 55,000 55,000
510.79 Advertising & Promotions 12,127 16,060 10,000 10,000 10,000
510.83 Credit Card Fees 26,681 35,182 26,000 30,000 30,000
510.85 State Sales Tax 4,049 4,228 4,000 4,000 4,000
535.01 Building Mnt Internal Svc Cntrb - 213,472 195,025 192,500 204,271
545.01 Central Garage Internal Svc - - - - 4,852
25 - Operating Expenses 165,338 1,092,629 1,034,413 1,033,135 1,072,995
Percent Change 2017 vs. 2016 Budget 3.73%
30 - Contractual Services
515.05 Insurance Premium 265 265 265 265 277
515.10 Unemployment Insurance 25,000 26,975 8,000 8,000 4,000
240
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
515.15 Insurance Deductible - Worker's
Comp 10,324 - 57 - -
515.20 Insurance Deductible - Non
Wrker's Co - - 38 - -
30 - Contractual Services 35,589 27,240 8,360 8,265 4,277
Percent Change 2017 vs. 2016 Budget -48.84%
40 - Repairs and Maintenance
535.20 Buildings & Facilities 40,696 - - - -
535.35 Golf Course 21,902 8,123 - 4,466 4,466
535.40 Irrigation System 7,121 - 5,000 1,000 4,000
545.05 Gasoline 19,239 - - - -
550.05 Other Department Equipment 10,473 - - - -
40 - Repairs and Maintenance 99,431 8,123 5,000 5,466 8,466
Percent Change 2017 vs. 2016 Budget 69.32%
45 - Commodities
530.05 Electricity - Facilities 53,219 42,790 50,000 42,000 45,000
530.20 Gas - Facilities 4,663 7,607 15,000 8,000 8,000
530.45 Chemicals and Fertilizers 90,847 3,159 - - -
530.50 Small Equipment Tools &
Hardware 1,289 - - - -
45 - Commodities 150,018 53,555 65,000 50,000 53,000
Percent Change 2017 vs. 2016 Budget -18.46%
50 - Other Expenses
580.05 All Other Expenses 3,587 1,349 1,000 1,000 1,000
800 Depreciation 488,656 488,656 - - -
50 - Other Expenses 492,243 490,005 1,000 1,000 1,000
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment 22,081 - 100 - 100
555.30 Reserve for Capital Replacement 30,000 20,000 - - -
555.50 Reserve for Buildings 13,940 10,000 10,000 10,000 10,000
555.60 Reserve for Infrastructure - - 45,400 45,400 45,400
560.30 Capital Projects Buildings &
Structures 1,250 - - - -
560.80 Capital Projects Golf Course 17,408 - 20,000 18,000 55,000
55 - Capital Outlay 84,679 30,000 75,500 73,400 110,500
Percent Change 2017 vs. 2016 Budget 46.36%
Department Total: 84 - Golf 1,634,422 1,994,178 1,414,886 1,374,107 1,465,228
Percent Change 2017 vs. 2016 Budget 3.56%
241
Water and Sewer Fund
The departmental goals and the staffing summary of the Water and Sewer Fund
are included in the Public Works Department report, Section 5 Corporate Fund
Summary and Detail.
For FY 2017, the proposed revenue budget for the Village's Water and Sewer Fund totals $11,446,543 compared to
$13,834,475 for FY 2016. This is a decrease of $2,387,932 or 17.26 percent. The drop in revenue is caused by the
water meter replacement program completion. The installment note proceeds were recorded as miscellaneous
revenue in FY2015 and FY2016. Water usage is projected to be low from a historical standpoint, but in line with
the current trend of actual usage in 2015 and 2016. Water Fund revenues include building fees, sales of water,
investment income and all other revenues.
Building Revenue & Fees: The revenue for development fees are $60,000 for the proposed budget. This account
group takes into consideration anticipated building and development plans. Building revenue and fees are
developed in conjunction with estimates used by the Community Development Department.
Sales of Water: Significant revenue accrues from the metered sale of water along with sanitary sewer treatment
fees due the County of Lake.
Sales of Water and Village Sewer combined rate for 2017 adjusts to $5.91/1,000 gallons. The Water rate is $4.74
and Sewer is $1.17. The combined rate will continue to increase four percent each year. The rate
recommendations were the result of the twenty-year proforma analysis. This report will be updated and reviewed
annually.
Over the last three years, water usage has stabilized and no significant growth in consumption was factored for FY
2017. The only growth projected is a result of the installation of new meters. Consumption in Buffalo Grove has
significantly decreased in the last ten years. The decrease in consumption is due to several factors including
economic decisions to better manage water use, recent weather patterns of cooler and wetter summers, and
more efficient appliances.
The last line item of significance is Lake County Sanitary Sewer Treatment Fees. Lake County residents pay
$4/1,000 gallons of water metered for sanitary sewer treatment. The rate is set by the County of Lake. The Village
of Buffalo Grove bills on behalf of the county to save administrative costs. Cook County residents pay for sanitary
sewer treatment through a property tax levied by the Greater Water Reclamation District of Chicago.
2017 Personnel Summary- Water/Sewer
Water/Sewer FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Maintenance Worker I 8 0 6 0 7 0
Maintenance Worker II 13 0 14 0 14 0
Maintenance Worker II – CL 6 0 6 0 5 0
Water Manager 1 0 1 0 1 0
Sewer & Drainage Manager 1 0 1 0 1 0
Superintendent of Utilities 1 0 1 0 1 0
Total 30 0 29 0 29 0
Full & Part-Time Total 30 29 29
Budget Summary
Water
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 535,885 601,723 676,217
Personal Benefits 209,262 299,507 318,520
Operating Expenses 2,101,453 2,178,913 2,262,453
Contractual Services 74,797 65,506 67,662
Repair & Maintenance 37,573 116,780 118,900
Commodities 216,899 266,200 286,300
Other Expenses 1,129,991 - -
Capital Outlay 234,102 4,311,700 1,187,400
Debt Service 26,128 354,183 416,136
Other Financing Uses 945,000 945,000 945,000
Total 5,511,091 9,139,512 6,278,588
243
Budget Variance
Water
Line Item
Number Description Percent
Change
Dollar Amount
Change Description of Change
500.35 Overtime 32.65% 19,689 Based on last years OT hours work.
510.02 Telephone -100.00% (6,500) Moved to internal service fund (IT).
510.21 IT Internal Svc
Contribution 29.78% 14,187 Increase in internal service fund budget.
530.65 Water Meter Purchases New 20,000 Meters to be purchased for new
developments.
535.01 Building Mnt Internal Svc
Cntrb -11.88% (25,563) Decrease in allocation of internal service
fund budget.
545.01 Central Garage Internal
Svc 40.73% 50,362 Decrease in internal service fund budget.
555.10 Office and Other
Equipment -100.00% (800) Decrease in office equipment need.
560.60 Capital Projects Water
System -73.51% (3,124,300) Meter project is done.
565.10 Debt Service Principal 234.47% 179,495 Water Meter Project Installment Note
Payment.
565.20 Debt Service Interest -42.34% (117,542) Water Meter Project Installment Note
Payment.
5,511,091
9,139,512
6,278,588
Total
Public Works - Water
2015 Actual 2016 Est Actual 2017 Budget
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 170 - Water & Sewer Fund
30 - Permits
435.75 Water Connection Fees 1,650 5,275 1,500 10,700 2,500
435.76 Lake County Sewer Tap On
Fees 30,600 84,506 50,000 160,000 50,000
435.77 Village Sewer Tap On Fees 450 4,600 1,000 5,050 1,000
435.78 Water Meter Sales 4,786 10,070 2,500 11,500 2,500
435.79 System Improvement Fees 6,800 18,182 5,000 19,000 5,000
30 - Permits 44,286 122,633 60,000 206,250 61,000
Percent Change 2017 vs. 2016 Budget 1.67%
40 - Charges for Services
441.05 Sales of Water Resident -
Regular 4,296,045 5,449,201 5,805,580 6,072,760 6,315,670
441.15 Sales of Water Debt Service
Charge (4) - - - -
441.20 Sales of Water Penalties 91,188 98,438 100,000 130,000 100,000
441.30 Sales of Water Construction
Water 118 - 250 423 250
441.60 Sales of Water Fees - Turn On 1,271 1,300 1,000 500 1,000
442.05 Village Sewer Resident -
Regular 1,071,335 1,358,903 1,458,645 1,500,791 1,560,823
443.00 Lake County Sewer Sanitary
Sewer Service Fees 2,711,056 3,326,182 3,400,000 3,321,122 3,400,000
40 - Charges for Services 8,171,009 10,234,024 10,765,475 11,025,596 11,377,743
Percent Change 2017 vs. 2016 Budget 5.69%
45 - Interest Income
450.05 Interest Income - Savings 3,014 - 500 5,000 5,000
450.10 Interest Income -Investment
Pool - 2,434 - - -
450.15 Interest Income - Money
Market 9 3 - - -
450.20 Interest Income - CD's 4,333 884 5,000 300 300
450.25 Interest Income - Securities 11,462 1,250 3,500 2,500 2,500
450.35 Gain/Loss Security Transaction - 5,541 - - -
45 - Interest Income 18,818 10,112 9,000 7,800 7,800
Percent Change 2017 vs. 2016 Budget -13.33%
50 - Miscellaneous Revenue
465.90 Miscellaneous Income 520,521 5,737 3,000,000 3,500,000 -
50 - Miscellaneous Revenue 520,521 5,737 3,000,000 3,500,000 -
Percent Change 2017 vs. 2016 Budget -100.00%
55 - Operating Transfers
460.05 Interfund Transfers In - 596,218 - - -
55 - Operating Transfers - 596,218 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
Fund Total: 170 - Water & Sewer Fund 8,754,634 10,968,724 13,834,475 14,739,646 11,446,543
Percent Change 2017 vs. 2016 Budget
-17.26%
245
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 170 - Water & Sewer Fund
Department: 55 - Public Works
Division: 35 - Water
10 - Salaries
500.05 Full Time 518,232 472,483 576,725 518,226 592,217
500.10 Part Time 753 - - - -
500.35 Overtime 82,117 60,283 60,311 79,720 80,000
500.40 Longevity 3,500 3,119 4,000 3,777 4,000
10 - Salaries 604,602 535,885 641,036 601,723 676,217
Percent Change 2017 vs. 2016 Budget 5.49%
15 - Taxes and Benefits
505 Personal Benefits 5,283 - - - -
505.05 Group & Medical Life 112,581 86,643 181,000 160,000 171,950
505.10 Professional Training 1,604 4,001 4,200 3,142 4,578
505.15 Dues & Memberships 221 366 900 480 900
505.20 Clothing Allowance 1,239 581 2,100 2,121 2,100
505.25 Uniform Maintenance 795 - - - -
505.26 Uniform Rental 2,179 2,801 2,700 2,500 2,700
505.35 Safety Equipment 6,795 2,013 7,000 6,400 7,000
505.75 Employer's Contribution - FICA 36,110 32,939 36,169 36,087 37,215
505.80 Employer's Contribution - IMRF 79,536 72,155 87,624 80,338 83,374
505.85 Employer's Contribution Medicare 8,445 7,763 9,160 8,439 8,703
15 - Taxes and Benefits 254,787 209,262 330,853 299,507 318,520
Percent Change 2017 vs. 2016 Budget -3.73%
25 - Operating Expenses
510 Operating Expenses 47 - - - -
510.02 Telephone 4,572 2,963 6,500 5,900 -
510.10 Maintenance Contracts 60,230 17,771 114,000 118,600 120,443
510.12 Equipment Rental - - 1,018 1,000 1,018
510.14 Subscriptions & Publications 240 - - - -
510.16 Printing - - 4,000 4,000 4,000
510.21 IT Internal Svc Contribution - 36,361 47,641 42,644 61,828
510.40 Supplies - Office 931 975 500 519 500
510.50 Supplies - All Other 908 573 2,800 2,800 3,000
510.55 Operating Equip - Department 336 3,415 6,000 6,000 6,000
510.83 Credit Card Fees 1,064 1,192 2,000 2,000 2,000
510.84 Bank Fees 19,773 - - - -
510.90 Northwest Water Commission 1,668,240 1,671,152 1,700,000 1,680,000 1,700,000
535.01 Building Mnt Internal Svc Cntrb - 261,241 215,225 212,438 189,662
545.01 Central Garage Internal Svc - 105,809 123,640 103,012 174,002
25 - Operating Expenses 1,756,340 2,101,453 2,223,324 2,178,913 2,262,453
Percent Change 2017 vs. 2016 Budget 1.76%
246
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
515.05 Insurance Premium 46,868 46,868 46,868 46,868 49,024
515.10 Unemployment Insurance 1,600 1,600 1,600 1,600 1,600
515.15 Insurance Deductible - Worker's
Comp 14,512 20,703 10,043 10,043 10,043
515.20 Insurance Deductible - Non Wrker's
Co 8,789 5,627 6,995 6,995 6,995
30 - Contractual Services 71,769 74,797 65,506 65,506 67,662
Percent Change 2017 vs. 2016 Budget 3.29%
40 - Repairs and Maintenance
535.05 Sidewalks, Curbs, & Bikeways - - 25,000 25,000 25,000
535.20 Buildings & Facilities 4,455 - - - -
540.05 Water & Sewer Well Equipment 615 454 10,000 10,000 10,000
540.10 Water & Sewer Pumping Stations 11,738 10,039 10,000 9,280 10,900
540.15 Water & Sewer Watermains &
Services 15,720 12,519 16,000 16,000 16,500
540.20 Water & Sewer Reservoirs 225 - 5,000 5,000 5,000
540.25 Water & Sewer Water Meters 5,666 572 15,000 15,000 15,000
540.30 Water & Sewer Hydrants & Valves 31,881 11,512 20,000 20,000 20,000
545 Vehicles 720 - - - -
545.05 Gasoline 6,632 - - - -
545.10 Diesel Fuel 10,756 - - - -
545.15 Automotive Parts 6,162 - - - -
545.20 Garage Labor 13,914 - - - -
545.40 Contractual Auto Services 21,576 - - - -
550.05 Other Department Equipment 32 2,478 16,000 16,000 16,000
550.10 Other Radios 570 - 500 500 500
40 - Repairs and Maintenance 130,660 37,573 117,500 116,780 118,900
Percent Change 2017 vs. 2016 Budget 1.19%
45 - Commodities
530.15 Electricity - Water & Sewer 188,049 191,295 230,000 230,000 230,000
530.20 Gas - Facilities 2,901 1,853 4,400 4,400 4,400
530.45 Chemicals and Fertilizers 1,487 2,460 5,200 5,200 5,200
530.50 Small Equipment Tools & Hardware 1,503 1,699 1,600 1,600 1,700
530.60 Water Sample Analysis 15,400 19,592 25,000 25,000 25,000
530.65 Water Meter Purchases 25,597 - - - 20,000
45 - Commodities 234,938 216,899 266,200 266,200 286,300
Percent Change 2017 vs. 2016 Budget 7.55%
50 - Other Expenses
580.05 All Other Expenses 1,007 - - - -
580.40 Investment Fees - 135 - - -
800 Depreciation 1,083,180 1,129,856 - - -
50 - Other Expenses 1,084,187 1,129,991 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
247
30 -Contractual Services
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
555 Capital Equipment - 113,874 - - -
555.10 Office and Other Equipment - 529 800 - -
555.30 Reserve for Capital Replacement 54,255 54,255 54,000 54,000 54,000
555.40 Reserve for Technology 2,088 1,500 1,500 1,500 1,500
555.50 Reserve for Buildings 6,265 6,265 6,200 6,200 6,200
560.60 Capital Projects Water System 232,898 57,680 4,250,000 4,250,000 1,125,700
55 - Capital Outlay 295,506 234,102 4,312,500 4,311,700 1,187,400
Percent Change 2017 vs. 2016 Budget -72.47%
60 - Debt Service
565.10 Debt Service Principal (0) 17,033 76,553 76,553 256,048
565.20 Debt Service Interest 3,804 9,095 277,630 277,630 160,088
60 - Debt Service 3,804 26,128 354,183 354,183 416,136
Percent Change 2017 vs. 2016 Budget 17.49%
65 - Other Financing Uses
570.10 Operating Transfers Corporate Fund 774,000 765,000 765,000 765,000 765,000
570.20 Operating Transfers Debt Service
Fund 200,000 180,000 180,000 180,000 180,000
65 - Other Financing Uses 974,000 945,000 945,000 945,000 945,000
Percent Change 2017 vs. 2016 Budget 0.00%
Division Total: 35 - Water 5,410,593 5,511,091 9,256,102 9,139,512 6,278,588
Percent Change 2017 vs. 2016 Budget -32.17%
248
55 -Capital Outlay
Budget Summary
Sewer
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 343,266 331,312 348,000
Personal Benefits 146,646 171,230 204,175
Operating Expenses 226,659 273,562 267,796
Contractual Services 23,707 41,693 43,077
Repair & Maintenance 12,761 33,310 35,900
Commodities 2,919,963 3,407,472 3,496,500
Capital Outlay 182,822 1,142,444 985,644
Total 3,855,825 5,401,023 5,381,092
Budget Variance
Sewer
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
505.26 Uniform Rental 33.33% 400 Correction from error in last years budget.
505.75 Employer's
Contribution - FICA 26.22% 5,401 Increase in budgeted payroll.
505.80 Employer's
Contribution - IMRF 25.86% 11,918 Increase in IMRF rate to 13.89%.
505.85 Employer's
Contribution Medicare 26.61% 1,282 Increase in budgeted payroll.
510.02 Telephone -100.00% (15,000) Moved to internal service fund (IT).
510.10 Maintenance
Contracts -51.02% (25,000) SCADA Support Service agreement with BW.
510.21 IT Internal Svc
Contribution 100.16% 17,766 Increase in internal service fund budget.
530.65 Water Meter
Purchases New 20,000 Added back to budget due to completion of Meter
replacement program.
545.01 Vehicles Central
Garage Internal Svc -13.05% (6,643) Decrease in internal service fund budget.
560.70 Capital Projects Sewer
System -104.55% 12,893
Includes $900,000 for golfview lift station, 54000
smoke testing and $1.2 m for sanitary sewer
replacement.
3,855,825
5,401,023 5,381,092
Total
Public Works - Sewer
2015 Actual 2016 Est Actual 2017 Budget
250
Expense
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 170 - Water & Sewer Fund
Department: 55 - Public Works
Division: 36 - Sewer
10 - Salaries
500.05 Full Time 296,793 324,120 317,590 312,420 328,450
500.35 Overtime 15,964 14,827 15,000 18,114 16,350
500.40 Longevity 1,640 4,319 3,200 778 3,200
10 - Salaries 314,397 343,266 335,790 331,312 348,000
Percent Change 2017 vs. 2016 Budget 3.64%
15 - Taxes and Benefits
505 Personal Benefits 2,718 - - - -
505.05 Group & Medical Life 53,444 69,481 107,500 90,000 102,125
505.10 Professional Training 775 679 1,600 1,440 1,600
505.15 Dues & Memberships 30 133 200 233 200
505.20 Clothing Allowance 279 373 700 580 750
505.25 Uniform Maintenance 174 - - - -
505.26 Uniform Rental 699 1,466 1,200 1,500 1,600
505.35 Safety Equipment 2,258 1,233 7,800 7,020 7,800
505.75 Employer's Contribution - FICA 18,937 21,015 20,599 20,162 26,000
505.80 Employer's Contribution - IMRF 42,111 47,291 46,082 45,580 58,000
505.85 Employer's Contribution Medicare 4,429 4,975 4,818 4,715 6,100
15 - Taxes and Benefits 125,854 146,646 190,499 171,230 204,175
Percent Change 2017 vs. 2016 Budget 7.18%
25 - Operating Expenses
510.02 Telephone 15,207 1,924 15,000 13,000 -
510.10 Maintenance Contracts 12,238 28,845 49,000 46,312 24,000
510.12 Equipment Rental - - 200 150 200
510.14 Subscriptions & Publications - - 75 50 75
510.21 IT Internal Svc Contribution - 16,143 17,738 15,877 35,504
510.40 Supplies - Office 132 208 500 420 500
510.50 Supplies - All Other 1,163 2,876 3,500 3,787 3,800
510.55 Operating Equip - Department 11,462 - 7,500 6,750 7,500
535.01 Building Mnt Internal Svc Cntrb - 118,493 146,717 144,817 151,971
545.01 Central Garage Internal Svc - 58,169 50,889 42,399 44,246
25 - Operating Expenses 40,202 226,659 291,119 273,562 267,796
Percent Change 2017 vs. 2016 Budget -8.01%
30 - Contractual Services
515.05 Insurance Premium 32,748 30,477 30,093 30,093 31,477
515.10 Unemployment Insurance 800 800 800 800 800
515.15 Insurance Deductible - Worker's
Comp (2,120) (7,570) 6,500 6,500 6,500
251
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
515.20 Insurance Deductible - Non Wrker's
Co 4,028 - 4,300 4,300 4,300
30 - Contractual Services 35,456 23,707 41,693 41,693 43,077
Percent Change 2017 vs. 2016 Budget 3.32%
40 - Repairs and Maintenance
535.05 Sidewalks, Curbs, & Bikeways - - 10,000 10,000 10,000
540.35 Water & Sewer Storm and Sanitary
Sewers 5,056 6,661 5,500 4,950 5,500
540.40 Water & Sewer Lift Stations 5,256 6,101 14,000 12,600 14,000
545.05 Gasoline 2,015 - - - -
545.10 Diesel Fuel 5,462 - - - -
545.15 Automotive Parts 2,822 - - - -
545.20 Garage Labor 7,039 - - - -
545.40 Contractual Auto Services 99 - - - -
550.05 Other Department Equipment - - 6,200 5,580 6,200
550.10 Other Radios - - 200 180 200
40 - Repairs and Maintenance 27,750 12,761 35,900 33,310 35,900
Percent Change 2017 vs. 2016 Budget 0.00%
45 - Commodities
530.15 Electricity - Water & Sewer 36,219 37,865 45,000 35,000 45,000
530.50 Small Equipment Tools & Hardware 476 3,737 1,500 1,350 1,500
530.70 Lake County Tap-On Fees 30,600 159,256 50,000 50,000 50,000
530.75 Lake County Sanitary Sewer Fees 3,033,384 2,719,104 3,400,000 3,321,122 3,400,000
45 - Commodities 3,100,679 2,919,963 3,496,500 3,407,472 3,496,500
Percent Change 2017 vs. 2016 Budget 0.00%
50 - Other Expenses
580.05 All Other Expenses 70 - - - -
50 - Other Expenses 70 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment - 529 700 - 700
555.30 Reserve for Capital Replacement 26,044 26,044 26,044 26,044 26,044
555.40 Reserve for Technology 1,350 1,400 1,400 1,400 1,400
555.50 Reserve for Buildings 3,580 3,580 3,500 3,500 3,500
560.70 Capital Projects Sewer System 84,010 151,269 1,235,000 1,111,500 954,000
55 - Capital Outlay 114,984 182,822 1,266,644 1,142,444 985,644
Percent Change 2017 vs. 2016 Budget -22.18%
Division Total: 36 - Sewer 3,759,392 3,855,825 5,658,145 5,401,023 5,381,092
Percent Change 2017 vs. 2016 Budget -4.90%
252
Refuse Fund
The Refuse Fund was established as required by the project use agreement between the Village and the Solid
Waste Agency of Northern Cook County (SWANCC). The Fund accounts for all user fees collected by the Village on
behalf of the Agency for transfer and waste disposal services. The budget is based on the FY 2016-2017
commitment by the Village of an estimated 15,289 tons of refuse to be processed at a rate of $49.17/ton.
On April 16, 2012, the Village Board approved a five-year contract with Waste Management. On July 8, 2015, the
agreement was amended to extend the contract to April 30, 2019. The negotiated rates are fixed during the
duration of the initial contract, upon renewal the rates will increase five percent on May 1, 2017. The effective
rates are noted below and will be valid through April 30, 2019.
Single Family Monthly Rate Multi Family Monthly Rate
Solid Waste Collection with Cart $7.99 $7.92
Recycling Collection with Cart $3.36 1.94*
Landscape Collection without Cart $3.15 -
Additional weekly service $4.46* NA
Tipping Fee $5.65 $4.50
Total - 1 Collection per Week $20.15 $12.42
Total - 2 Collections per Week $24.61* NA
The tipping fee is charged by the Solid Waste Agency of Northern Cook County (SWANCC) and is administered
outside of the Waste Management contract.
* Optional service
Budget Summary
Refuse
2015 Actual 2016 Est Actual 2017 Budget
Other Expenses 702,105 760,000 760,000
Other Financing Uses 75,000 275,000 550,000
Total 777,105 1,035,000 1,310,000
Budget Variance
Refuse
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
570.10 Operating Transfers
Corporate Fund 33.33% 25,000 Increase in Operating fund outlay for refuse.
570.20 Operating Transfers
Debt Service New 450,000
One time transfer for curb and gutter
replacement of debt service used on street
repair.
570.30 Operating Transfers
Capital Projects Fund -100.00% (200,000) Reclassed for transfer to debt service.
253
777,105
1,035,000
1,310,000
Total
Refuse Fund
2015 Actual 2016 Est Actual 2017 Budget
254
Revenue
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 200 - Refuse Fund
50 - Miscellaneous Revenue
465.55 SWANCC User Fees 1,044,442 1,039,875 1,040,000 1,045,000 1,045,000
50 - Miscellaneous Revenue 1,044,442 1,039,875 1,040,000 1,045,000 1,045,000
Percent Change 2017 vs. 2016 Budget 0.48%
Fund Total: 200 - Refuse Fund 1,044,442 1,039,875 1,040,000 1,045,000 1,045,000
Percent Change 2017 vs. 2016 Budget
0.48%
Expense
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 200 - Refuse Fund
Department: 86 - Refuse
50 - Other Expenses
580.35 All Other Expense SWANCC User Fees 803,039 702,105 751,740 760,000 760,000
50 - Other Expenses 803,039 702,105 751,740 760,000 760,000
Percent Change 2017 vs. 2016 Budget 1.10%
65 - Other Financing Uses
570.10 Operating Transfers Corporate Fund - 75,000 75,000 75,000 100,000
570.20 Operating Transfers Debt Service
Fund - - - - 450,000
570.30 Operating Transfers Capital Projects
Fund - - 200,000 200,000 -
65 - Other Financing Uses - 75,000 275,000 275,000 550,000
Percent Change 2017 vs. 2016 Budget 100.00%
Department Total: 86 - Refuse 803,039 777,105 1,026,740 1,035,000 1,310,000
Percent Change 2017 vs. 2016 Budget 27.59%
255
Section 8
Internal Service Funds
Information Technology Fund
Central Garage Fund
Building and Facility Maintenance Fund
Internal Service Funds
Internal Service Funds provide funding for services to other Village departments
to efficiently provide goods and services to Village of Buffalo Grove residents.
Internal service funds are activities that produce goods or services to be provided to other departments within the
governmental unit or amongst multiple governmental units. The Village’s internal service funds only support
internal operations. The Village’s internal service funds are:
• Fund 211 – Information Technology
• Fund 212 – Central Garage
• Fund 213 – Building Maintenance
Internal service funds are operated and accounted for on a business basis. All expenditures incurred for the Village
related to technology, building maintenance, and central garage are charged to the corresponding fund. The
Finance Department establishes the budget for an internal service fund the same way it does for any other
department or fund. Expenditures are assessed to each department based on the direct cost of the good or
service and an overhead amount that covers indirect costs. The operating expenditures can be found in the
department budgets under the following accounts; I.T. contribution (510.21), building maintenance contribution
(535.01), and central garage contribution (545.01).
The internal service funds generate revenue from the expenditures incurred at the department level. The funds
maintain year-end operating statements in the Comprehensive Annual Financial Report (CAFR) in the Statement of
Revenues, Expenditures, and Change in Fund Net Assets.
Internal service funds allow the Village to better cost the services provided to residents. Building maintenance
department costs are charged to departments based on the square footage occupied. Central Garage costs are
based on each department’s historical usage of fuel, parts, and contracted repairs. The allocation of direct costs to
the departments for salaries and benefits is applied to Central Garage overhead. IT costs are based on the number
of employees in a department, or the number of software licenses that are used amongst multiple departments.
Information Technology
Information Technology provides management, review, and oversight of each
Village Department’s information system needs.
Information Technology is provided through the
Government IT Consortium of which the Village of
Buffalo Grove is a founding member. Each member
of the consortium shares the same contractor for IT
services. Contract administration is housed within
the Office of the Village Manager. The Division is
staffed by full-time employees hired by the
Consortium’s contractor with IT management
provided by the manager of the Consortium.
Prior to joining the Consortium, many of the Village’s
applications were out of date. Due to the significant
savings in personnel costs as a result of joining the
Consortium, the Village has been able to reinvest the
savings into much needed improvements to IT
infrastructure.
Information Technology allows all departments to
access the network, email, and all other
technologies. The IT fund allocations are distributed
by function based on applications used by
department and IT users. Most of the costs
budgeted in the fund are contracted service or
maintenance agreements programs the Village
utilizes.
Other costs include a formal computer replacement
plan which was established for the first time in the
2015 budget.
Government IT Consortium Mission
The mission of the Government IT Consortium is to
reduce the costs of IT by sharing service providers,
making joint purchases, and sharing infrastructure.
258
2017 Staffing Summary
In 2014, the Village opted to join the Government IT Consortium and out-sourced the IT function.
Budget Summary
Information Technology
2015 Actual 2016 Est Actual 2017 Budget
Operating Expenses 816,647 1,044,647 1,329,002
Contractual Services 17,357 17,357 17,357
Repair & Maintenance 7,273 1,606 5,000
Capital Outlay 116,685 32,219 -
Total 957,961 1,095,829 1,351,359
Budget Variance
Information Technology
Line Item
Number Description Percent
Change
Amount
Change Description of Change
510.02 Telephone 93.76% 98,450 Moved into Internal Service fund from all
other Departments.
510.10 Maintenance
Contracts 28.02% 227,349
Moved all IT contracts from other departments into
IT Fund (including contracts from Police, Fire,
Human Resources, an Public Works, final expenses
for Cartegraph implementation, increase to
InterDev contract and anticipated increase in
Canon Copier lease up this year.
510.20 Computer Services -69.74% (165,270)
One-time projects eliminated such as Council
Chambers A/V and purchase of Laserfiche web
portal.
510.40 Supplies - Office -100.00% (1,200) Reduced based on usage.
555.40 Reserve for
Technology -100.00% (32,219) Included with each departments capital
contribution.
D
957,961
1,095,829
1,351,359
Total
Information Technology Fund
2015 Actual 2016 Est Actual 2017 Budget
260
Revenues
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 211 - Information Technology Fund
55 - Operating Transfers
461.01 Contributions Information
Technology Fund - 957,961 1,224,249 1,095,829 1,351,359
55 - Operating Transfers - 957,961 1,224,249 1,095,829 1,351,359
Percent Change 2017 vs. 2016 Budget 10.38%
Expenses
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 211 - Information Technology Fund
Department: 92 - Information Technology
10 - Salaries
500.05 Full Time 216,407 - - - -
500.35 Overtime 233 - - - -
500.40 Longevity 1,400 - - - -
10 - Salaries 218,039 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
15 - Taxes and Benefits
505.05 Group & Medical Life 33,907 - - - -
505.10 Professional Training 14,497 - - - -
505.75 Employer's Contribution - FICA 13,467 - - - -
505.80 Employer's Contribution - IMRF 29,744 - - - -
505.85 Employer's Contribution Medicare 3,150 - - - -
15 - Taxes and Benefits 94,765 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
25 - Operating Expenses
510.02 Telephone 12,772 67,352 105,000 105,000 203,450
510.04 Travel 176 - - - -
510.06 Per Diem Allowance 220 - - - -
510.08 Reception & Community Affairs 32 - - - -
510.10 Maintenance Contracts 343,294 607,366 811,503 806,073 1,038,852
510.14 Subscriptions & Publications 234 732 15,000 15,000 15,000
510.20 Computer Services 85,238 139,767 236,970 118,574 71,700
510.40 Supplies - Office 3,939 1,431 1,200 - -
261
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
25 - Operating Expenses 445,905 816,647 1,169,673 1,044,647 1,329,002
Percent Change 2017 vs. 2016 Budget 13.62%
30 - Contractual Services
515.05 Insurance Premium 1,016 - - - -
515.20 Insurance Deductible - Non Wrker's
Co - 17,357 17,357 17,357 17,357
30 - Contractual Services 1,016 17,357 17,357 17,357 17,357
Percent Change 2017 vs. 2016 Budget 0.00%
40 - Repairs and Maintenance
550.05 Other Department Equipment 691 7,273 5,000 1,606 5,000
40 - Repairs and Maintenance 691 7,273 5,000 1,606 5,000
Percent Change 2017 vs. 2016 Budget 0.00%
50 - Other Expenses
580.05 All Other Expenses 95 - - - -
50 - Other Expenses 95 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment 4,674 - - - -
555.40 Reserve for Technology 112,196 116,685 32,219 32,219 -
555.50 Reserve for Buildings 2,685 - - - -
55 - Capital Outlay 119,555 116,685 32,219 32,219 -
Percent Change 2017 vs. 2016 Budget -100.00%
Fund Total: 92 - Information Technology 880,067 957,961 1,224,249 1,095,829 1,351,359
Percent Change 2017 vs. 2016 Budget
10.38%
262
Central Garage Fund
The department goals for Central Garage Fund are included in section 5 of the Corporate Fund Summary in Public
Works. Central Garage serves most departments of the Village of Buffalo Grove. The departments that rely most
on Central Garage are those with vehicles, equipment, or machinery that require maintenance and/or fuel. The
heaviest users are the Police Department, Fire Department, and Public Works. The Central Garage Department’s
primary service is providing Village employees with safe and reliable tools, equipment, and vehicles to complete
tasks efficiently.
Central Garage FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Automotive Mechanic II 3 0 3 0 1 0
Automotive Mechanic III 1 0 1 0 3 0
Automotive Shop Assistant 0 1 0 1 0 1
Fleet Manager 1 0 1 0 1 0
Total 5 1 5 1 5 1
Full & Part-Time Total 6 6 6
Budget Summary
Garage
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 537,281 505,833 502,047
Personal Benefits 248,109 240,747 252,945
Operating Expenses 44,452 15,889 21,852
Contractual Services 23,399 32,320 32,320
Repair & Maintenance 635,606 653,876 887,400
Commodities 1,798 9,186 5,000
Other Expenses 101 - -
Capital Outlay 37,739 55,218 55,218
Total 1,528,484 1,513,069 1,756,782
263
Budget Variances
Garage
Line
Item
Number
Description Percent
Change
Dollar
Amount
Change
Description of Change
500.10 Part Time -23.86% (4,384) New employee; lower pay scale.
500.35 Overtime 11.11% 700 Increased OT trend, cost of living
adjustment.
505.10 Professional Training 114.29% 800 Added DDPW & Maint. Super (17% & 25%
respectively).
510.02 Telephone -100.00% (1,500) Moved to internal service fund (IT).
510.14 Subscriptions & Publications -98.55% (5,420) CFA moved to IT fund.
510.50 Supplies - All Other 50.00% 2,500 Increased repair cost trending
510.55 Operating Equip - Department -36.87% (5,840) Replacement of equipment, removed.
545.10 Vehicles Diesel Fuel -21.62% (51,028) Market rate.
545.40 Vehicles Contractual Auto
Services 32.24% 67,045 Several large FD contractual jobs.
530.50 Small Equipment Tools &
Hardware 66.67% 2,000 Equipment needed for new fleet adds.
550.20 Radio’s New 200 Equipment required for fleet.
1,528,484 1,513,069
1,756,782
Total
Public Works - Central Garage
2015 Actual 2016 Est Actual 2017 Budget
Revenues
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 212 - Central Garage Fund
55 - Operating Transfers
461.03 Contributions Central Garage Fund - 1,528,484 1,791,878 1,492,926 1,756,782
55 - Operating Transfers - 1,528,484 1,791,878 1,492,926 1,756,782
Percent Change 2017 vs. 2016 Budget -1.96%
Fund Total: 212 - Central Garage Fund - 1,528,484 1,791,878 1,492,926 1,756,782
Percent Change 2017 vs. 2016 Budget
-1.96%
Expenditures
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 212 - Central Garage Fund
Department: 93 - Central Garage
10 - Salaries
500.05 Full Time 462,210 499,684 524,953 484,100 476,397
500.10 Part Time 16,856 16,897 18,370 10,245 13,986
500.35 Overtime 1,057 16,114 6,300 6,888 7,000
500.40 Longevity 4,300 4,586 4,664 4,600 4,664
10 - Salaries 484,423 537,281 554,287 505,833 502,047
Percent Change 2017 vs. 2016 Budget -9.42%
15 - Taxes and Benefits
505 Personal Benefits 4,484 - - - -
505.05 Group & Medical Life 137,745 130,143 116,250 125,245 125,245
505.10 Professional Training 150 60 700 406 1,500
505.15 Dues & Memberships 311 133 200 200 200
505.20 Clothing Allowance 758 563 1,069 1,000 1,069
505.26 Uniform Rental 3,977 4,518 4,898 4,056 4,898
505.35 Safety Equipment - 699 750 450 750
505.75 Employer's Contribution - FICA 28,860 32,536 34,366 31,767 34,366
505.80 Employer's Contribution - IMRF 64,352 71,657 76,880 70,194 76,880
505.85 Employer's Contribution
Medicare 6,816 7,801 8,037 7,429 8,037
15 - Taxes and Benefits 247,453 248,109 243,150 240,747 252,945
Percent Change 2017 vs. 2016 Budget 4.03%
25 - Operating Expenses
510.02 Telephone 1,002 786 1,500 795 -
510.10 Maintenance Contracts - 1,661 3,500 2,276 3,500
510.12 Equipment Rental - - 300 - 300
510.14 Subscriptions & Publications 2,660 3,915 5,500 3,500 80
510.21 IT Internal Svc Contribution - 24,288 - - -
510.40 Supplies - Office - 92 472 472 472
510.50 Supplies - All Other 4,434 5,126 5,000 5,346 7,500
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
510.55 Operating Equip - Department 6,794 8,584 15,840 3,500 10,000
25 - Operating Expenses 14,890 44,452 32,112 15,889 21,852
Percent Change 2017 vs. 2016 Budget -31.95%
30 - Contractual Services
515.05 Insurance Premium 23,078 - 23,078 23,078 23,078
515.10 Unemployment Insurance 1,000 1,000 1,000 1,000 1,000
515.15 Insurance Deductible - Worker's
Comp 3,954 22,399 4,945 4,945 4,945
515.20 Insurance Deductible - Non
Wrker's Co - - 3,297 3,297 3,297
30 - Contractual Services 28,032 23,399 32,320 32,320 32,320
Percent Change 2017 vs. 2016 Budget 0.00%
40 - Repairs and Maintenance
545 Maintenance & Repairs -
Vehicles - 14,206 - - -
545.05 Gasoline 206,183 144,881 221,058 115,885 225,000
545.10 Diesel Fuel 198,449 111,492 236,028 74,916 185,000
545.15 Automotive Parts 159,099 165,060 194,250 167,137 190,000
545.25 Lubricants 5,250 7,231 8,500 6,649 8,200
545.35 Body Work - 180 - - -
545.40 Contractual Auto Services 137,757 191,005 207,955 287,789 275,000
550.05 Other Department Equipment 3,051 1,549 4,000 1,500 4,000
550.10 Radios - - - - 200
40 - Repairs and Maintenance 709,790 635,606 871,791 653,876 887,400
Percent Change 2017 vs. 2016 Budget 1.79%
45 - Commodities
530.50 Equipment Tools & Hardware 1,902 1,798 3,000 9,186 5,000
45 - Commodities 1,902 1,798 3,000 9,186 5,000
Percent Change 2017 vs. 2016 Budget 66.67%
50 - Other Expenses
580.05 All Other Expenses - 101 - - -
50 - Other Expenses - 101 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment - 529 1,400 1,400 1,400
555.20 Automobiles & Trucks 1,023,425 2,135 18,743 18,743 18,743
555.30 Reserve for Capital
Replacement 20,511 30,000 30,000 30,000 30,000
555.40 Reserve for Technology 900 600 600 600 600
555.50 Reserve for Buildings 4,475 4,475 4,475 4,475 4,475
55 - Capital Outlay 1,049,311 37,739 55,218 55,218 55,218
Percent Change 2017 vs. 2016 Budget 0.00%
Department Total: 93 - Central Garage 2,535,801 1,528,484 1,791,878 1,513,069 1,756,782
Percent Change 2017 vs. 2016 Budget -1.96%
267
Building Maintenance Fund
The department goals for the Building Maintenance Department are included in the Public Works Department in
Section 5 Corporate Fund Summary.
The Building Maintenance Department services all Village facilities and properties. Each year, in conjunction with
the development of the Capital Improvement Plan (CIP), departments submit building requests for the coming
fiscal year. These are requests for building improvements, general maintenance is performed regularly through
out the year as scheduled. Those projects are included in the budget based on the ability to fund the improvement
or repair.
Building Maintenance FY 2015 FY 2016 FY 2017
FT PT FT FT PT FT
Building Maintenance Supervisor 1 0 0 0 0 0
Building Maintenance Manager 0 0 1 0 1 0
Building Maintenance Worker 2 0 2 0 2 0
Building Maintenance Worker II – CL 1 0 1 0 1 0
Total 4 0 4 0 4 0
Full & Part-Time Total 4 4 4
Budget Summary
Building Maintenance
2015 Actual 2016 Est Actual 2017 Budget
Personal Services 357,091 399,157 427,596
Personal Benefits 187,306 191,850 194,502
Operating Expenses 135,478 133,890 184,094
Contractual Services 11,106 26,846 26,846
Repair & Maintenance 533,498 477,388 462,675
Commodities 149,442 179,649 142,251
Other Expenses 81 - -
Capital Outlay 19,656 25,000 25,020
Total 1,393,658 1,433,780 1,462,984
268
Budget Variance
Building Maintenance
Line Item
Number Description Percent
Change
Dollar
Amount
Change
Description of Change
500.35 Overtime 27.01% 2,701 Increased OT trend anticipation.
500.40 Longevity 15.02% 400 Employee at new plateau.
505.10 Professional
Training 87.50% 1,750
$500 per employee for various HVAC, electrical, service
specific training x 4. $1,000 for RPZ backflow device
certification $500 for 25% of Maintenance
Superintendent annual training. $250 for 17% of
Deputy Director annual training.
505.15 Dues &
Memberships 25.00% 125 APWA Memberships Electrical & Plumbing License
renewals CDL license reimbursements.
510.02 Telephone -100.00% (2,500) Moved to Internal Service Fund (IT).
510.10 Maintenance
Contracts 34.87% 37,769
Elevator Maint. & Inspections Fire Alarm Maint. &
Inspections Flat Roof Repairs Overhead door Maint.
Security & Surveillance repair Cleaning contract; all
facilities.
535.20 Facilities Buildings
& Facilities 12.99% 28,078 Village Remodeling Request - $159,300 Keep Stock
items - $20,000 BM Expenses - $30,000.
535.35 Facilities Golf
Course -100.00% (56,800) Removed from this line item; CIP.
530.10 Electricity - Street
Lights 28.23% 27,661 Increased based on historical trend.
530.25 Gas - Street Lights -100.00% (5,500) Gas lighting has been removed and replaced with Solar
lighting.
1,393,658
1,433,780
1,462,984
Total
Public Works - Building Maintenance
2015 Actual 2016 Est Actual 2017 Budget
Revenue
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 213 - Building Maintenance Fund
55 - Operating Transfers
461.02 Contributions Building
Maintenance Fund - 1,392,642 1,396,763 1,433,780 1,462,984
55 - Operating Transfers - 1,392,642 1,396,763 1,433,780 1,462,984
Percent Change 2017 vs. 2016 Budget 4.74%
Fund Total: 213 - Building Maintenance - 1,392,642 1,396,763 1,433,780 1,462,984
Percent Change 2017 vs. 2016 Budget
4.74%
Expenditures
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 213 - Building Maintenance Fund
Department: 94 - Building Maintenance
10 - Salaries
500.05 Full Time 292,961 342,376 382,906 382,906 411,831
500.10 Part Time 770 - - - -
500.35 Overtime 10,479 12,430 10,000 13,587 12,701
500.40 Longevity 3,200 2,286 2,664 2,664 3,064
10 - Salaries 307,410 357,091 395,570 399,157 427,596
Percent Change 2017 vs. 2016 Budget 8.10%
15 - Taxes and Benefits
505 Personal Benefits 2,909 - - - -
505.05 Group & Medical Life 91,160 101,685 95,250 95,250 95,250
505.10 Professional Training 920 649 2,000 2,000 3,750
505.15 Dues & Memberships 366 90 500 500 625
505.20 Clothing Allowance 953 366 875 900 955
505.26 Uniform Rental 9,606 6,583 6,273 6,273 6,620
505.35 Safety Equipment - 1,707 2,000 1,800 2,175
505.75 Employer's Contribution - FICA 18,233 22,062 24,525 24,525 24,525
505.80 Employer's Contribution - IMRF 41,256 48,982 54,866 54,866 54,866
505.85 Employer's Contribution
Medicare 4,264 5,182 5,736 5,736 5,736
15 - Taxes and Benefits 169,668 187,306 192,025 191,850 194,502
Percent Change 2017 vs. 2016 Budget 1.29%
25 - Operating Expenses
510.02 Telephone 4,944 2,405 2,500 2,270 -
510.10 Maintenance Contracts 65,068 76,211 108,300 98,000 146,069
269
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
510.12 Equipment Rental 11,682 - 540 300 590
510.14 Subscriptions & Publications - - 220 220 240
510.20 Computer Services - 339 - - -
510.21 IT Internal Svc Contribution - 17,113 - - -
510.40 Supplies - Office 489 673 600 600 600
510.50 Supplies - All Other 1,883 8,502 33,350 32,000 36,000
510.55 Operating Equip - Department - - 545 500 595
545.01 Central Garage Internal Svc - 30,234 - - -
25 - Operating Expenses 84,066 135,478 146,055 133,890 184,094
Percent Change 2017 vs. 2016 Budget 26.04%
30 - Contractual Services
515.05 Insurance Premium 17,823 - 17,900 17,900 17,900
515.10 Unemployment Insurance 800 3,356 800 800 800
515.15 Insurance Deductible - Worker's
Comp (1,430) 7,750 5,600 5,600 5,600
515.20 Insurance Deductible - Non
Wrker's Co - - 2,546 2,546 2,546
30 - Contractual Services 17,193 11,106 26,846 26,846 26,846
Percent Change 2017 vs. 2016 Budget 0.00%
40 - Repairs and Maintenance
535 Facilities 7,123
535.05 Sidewalks, Curbs, & Bikeways - 13,778 - - -
535.10 Streets & Highways 788 - - - -
535.15 Street Lights 203,829 201,528 216,000 160,102 216,000
535.20 Buildings & Facilities 97,557 305,964 216,222 315,233 244,300
535.35 Golf Course - 11,150 56,800 - -
535.40 Irrigation System - 1,077 - 53 -
550.05 Other Department Equipment - - 2,100 2,000 2,275
550.10 Radios - - 100 - 100
40 - Repairs and Maintenance 302,174 533,498 491,222 477,388 462,675
Percent Change 2017 vs. 2016 Budget -5.81%
45 - Commodities
530.10 Electricity - Street Lights 129,904 119,539 98,000 122,931 125,661
530.20 Gas - Facilities 69,227 24,183 16,000 53,726 16,000
530.25 Gas - Street Lights 9,982 5,405 5,500 2,447 -
530.50 Small Equipment Tools &
Hardware - 314 545 545 590
45 - Commodities 209,114 149,442 120,045 179,649 142,251
Percent Change 2017 vs. 2016 Budget 18.50%
270
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
50 - Other Expenses
580.05 All Other Expenses 269 81 - - -
50 - Other Expenses 269 81 - - -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Capital Outlay
555.10 Office and Other Equipment - 529 250 250 270
555.20 Automobiles & Trucks - - 5,623 5,623 5,623
555.30 Reserve for Capital
Replacement 14,207 14,207 14,207 14,207 14,207
555.40 Reserve for Technology 1,000 1,000 1,000 1,000 1,000
555.50 Reserve for Buildings 3,580 3,920 3,920 3,920 3,920
55 - Capital Outlay 18,787 19,656 25,000 25,000 25,020
Percent Change 2017 vs. 2016 Budget 0.08%
Total: 94 - Building Maintenance 1,108,681 1,393,658 1,396,763 1,433,780 1,462,984
Percent Change 2017 vs. 2016 Budget 4.74%
271
Section 9
Fiduciary Funds
Police Pension Fund
Firefighters Pension Fund
Police Pension Fund
The Police Pension Fund provides retirement, disability, and survivor benefits for all sworn police personnel. The
defined benefit pension plan is in conformance with Illinois State Statutes under the oversight of the Illinois
Division of Insurance. Employees contribute 9.91 percent of their annual salary to the Police Pension Fund.
Standards have been established regarding investment returns and salary increases in order to actuarially
determine annual employer contribution levels. The annual benchmark for investment returns is 7 percent. The
annual salary increase assumption remains at 4.00-8.67 percent.
The Police Pension Board has invested, as of August 31, 2016, 57.34 percent of its investment portfolio in equity
related instruments (mutual funds and separate stocks) and 42.66 percent in fixed income investments (money
market funds, certificates of deposit, treasury bonds, and government agencies).
The Police Pension’s rate of return for the last fiscal year was 00.33 percent, net of investment fees. The previous
fiscal year return was 7.10 percent, with a five year return of 7.61 percent.
The 2016 budget includes pensions for 48 annuitants. 38 are traditional retirements, two are disability pensions,
two are surviving spouses, and six are deferred pensioners.
Performance Activities and Measures
January 1, 2014 January 1, 2015 January 1, 2016
Unfunded Liability
(in thousands) 24,553 25,088 32,620
Assets (in thousands) 52,540 56,254 56,510
Percent Funded 69.19% 69.16% 63.34%
Number of Active
Participants 63 63 61
Number of Inactive
Participants 48 48 50
Data has been obtained from the actuarial report that coincides with the date of the column.
Departmental Staffing
No full time or part time employees are assigned to this program.
Budget Summary
Police Pension Fund
2015 Actual 2016 Est Actual 2017 Budget
Personal Benefits 2,969,656 3,242,593 3,650,000
Other Expenses 222,558 289,820 295,000
Total 3,192,215 3,532,413 3,945,000
273
Budget Variance
Police Pension Fund
Line Item
Number Description Percent
Change Dollar Amount Change Description of Change
505.55 Survivor Pension - Police 43.62% 75,925 Additional Retirees.
505.60 Pension Payment - Police 10.16% 295,177 Additional Retirees.
505.65 Disability Payment - Police -45.25% (41,318) Decrease in Retirees.
3,192,215
3,532,413
3,945,000
Total
Police Pension Fund
2015 Actual 2016 Est Actual 2017 Budget
274
Revenue
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 220 - Police Pension Fund
15 - Other Taxes
410.50 State Shared Replacement
Tax
-
12,729
-
10,890
8,742
15 - Other Taxes - 12,729 - 10,890 8,742
Percent Change 2017 vs. 2016 Budget 0.00%
45 - Interest Income
450.25 Securities 454,322 510,436 495,000 59,819 300,000
450.26 Fixed Income 197,252 204,137 250,000 260,379 250,000
450.45 Stock Dividend 168,697 148,550 200,000 435,356 250,000
450.50 Fixed Income 382,168 (55,682) 125,000 484,944 200,000
450.55 Mutual Funds 372 (384,275) 60,000 573,496 150,000
450.60 Equity Securities 2,778,211 (53,844) 2,000,000 2,013,019 2,000,000
45 - Interest Income 3,981,022 369,321 3,130,000 3,827,013 3,150,000
Percent Change 2017 vs. 2016 Budget 0.64%
50 - Miscellaneous Revenue
465.41 Pension Contributions - EE 654,674 669,027 663,222 606,730 682,740
465.90 Miscellaneous Income 20 50 - - -
50 - Miscellaneous Revenue 654,694 669,077 663,222 606,730 682,740
Percent Change 2017 vs. 2016 Budget 2.94%
55 - Operating Transfers
460.05 Interfund Transfers In 2,083,758 2,271,586 2,440,239 2,262,101 2,525,647
55 - Operating Transfers 2,083,758 2,271,586 2,440,239 2,262,101 2,525,647
Percent Change 2017 vs. 2016 Budget 3.50%
Fund Total: 220 - Police Pension 6,719,474 3,322,713 6,233,461 6,706,734 6,367,129
Percent Change 2017 vs. 2016 Budget
2.14%
Expense
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 220 - Police Pension Fund
Department: 88 - Police Pension
15 - Taxes and Benefits
505.55 Survivor Pension - Police 98,534 190,224 174,075 217,610 250,000
505.60 Pension Payment - Police 2,461,964 2,709,467 2,904,823 2,959,886 3,200,000
505.65 Disability Payment - Police 89,528 69,966 91,318 42,579 50,000
505.70 Pension Refund - Police 97,566 - 150,000 22,518 150,000
15 - Taxes and Benefits 2,747,592 2,969,656 3,320,216 3,242,593 3,650,000
Percent Change 2017 vs. 2016 Budget 9.93%
50 - Other Expenses
580.05 All Other Expenses 33,343 39,871 42,500 41,150 45,000
580.40 Investment Fees 224,535 182,688 250,000 248,670 250,000
50 - Other Expenses 257,878 222,558 292,500 289,820 295,000
Percent Change 2017 vs. 2016 Budget 0.85%
Department Total: 88 - Police Pension 3,005,470 3,192,215 3,612,716 3,532,413 3,945,000
Percent Change 2017 vs. 2016 Budget 9.20%
276
Firefighters Pension Fund
The Firefighters Pension Fund provides retirement, disability and survivor benefits for all sworn fire personnel. The
defined benefit pension plan is in conformance with Illinois State Statutes under the oversight of the Illinois
Division of Insurance. Employees contribute 9.455 percent of their annual salary to the Firefighter Pension Fund.
Standards have been established regarding investment returns and salary increases in order to actuarially
determine annual employer contribution levels. The Village’s annual benchmark for investment return is 7
percent. The annual salary increase assumption remains at 4.25 to 9.73 percent.
The Firefighters Pension Board has invested 55.44 percent of its portfolio in equity related instruments (mutual
funds and separate stocks) and 44.56 percent in fixed income investments (money market funds, certificates of
deposit, treasury bonds, and government agencies).
The Firefighters Pension’s rate of return for the last fiscal year is 1.33 percent, net of investment fees. The prior
year rate of return was 7.01 percent, and the five year return is 7.00 percent.
The 2017 budget includes pensions for 36 annuitants. 28 are traditional retirements, four are disability pensions
and four surviving spouse/children.
Performance Activities and Measures
January 1, 2014 January 1, 2015 January 1, 2016
Unfunded Liability
(in thousands) 18,280 16,321 18,747
Assets (in thousands) 49,182 49,189 50,370
Percent Funded 72.08% 75.07% 72.86%
Number of Active
Participants 55 55 55
Number of Inactive
Participants 30 33 34
*Data has been obtained from the actuarial report that coincides with the date of the column.
Departmental Staffing
No full time or part time employees are assigned to this program.
Budget Summary
Fire Pension Fund
2015 Actual 2016 Est Actual 2017 Budget
Personal Benefits 2,141,667 2,202,559 2,532,912
Other Expenses 172,891 188,847 200,000
Total 2,314,558 2,391,406 2,732,912
277
Budget Variance
Fire Pension Fund
Line Item
Number Description Percent Change Dollar Amount Change Description of Change
505.61 Pension Payment - Fire 35.65% 565,000 Additional retirees.
580.05 All Other Expenses 25.00% 10,000 Additional admin expenses.
580.40 Investment Fees 20.00% 25,000 Increase in fees.
2,314,558
2,391,406
2,732,912
Total
Fire Pension Fund
2015 Actual 2016 Est Actual 2017 Budget
278
Revenue
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 230 - Fire Pension Fund
15 - Other Taxes
410.50 State Shared
Replacement Tax - 12,729 - 10,890 8,742
15 - Other Taxes - 12,729 - 10,890 8,742
Percent Change 2017 vs. 2016
Budget 0.00%
45 - Interest Income
450.20 CD's 1,951,217 569,857 475,000 442,783 450,000
450.45 Stock Dividend - 1,271,961 350,000 149,078 300,000
450.50 Fixed Income 445,422 (133,351) 125,000 797,106 250,000
450.55 Mutual Funds 946,640 (929,312) 980,000 1,874,926 1,200,000
45 - Interest Income 3,343,279 779,155 1,930,000 3,263,893 2,200,000
Percent Change 2017 vs. 2016
Budget 13.99%
50 - Miscellaneous Revenue
465.41 Pension Contributions -
EE 502,014 524,694 525,067 504,645 559,488
465.90 Miscellaneous Income - 20 - - -
50 - Miscellaneous Revenue 502,014 524,714 525,067 504,645 559,488
Percent Change 2017 vs. 2016
Budget 6.56%
55 - Operating Transfers
460.05 Interfund Transfers In 2,168,844 2,189,409 2,174,632 2,057,797 1,862,674
55 - Operating Transfers 2,168,844 2,189,409 2,174,632 2,057,797 1,862,674
Percent Change 2017 vs. 2016
Budget -14.35%
Fund Total: 230 - Fire Pension 6,014,137 3,506,006 4,629,699 5,837,225 4,630,904
Percent Change 2017 vs. 2016
Budget
0.03%
279
Expense
Description
2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 230 - Fire Pension Fund
Department: 89 - Fire Pension
15 - Taxes and Benefits
505.56 Survivor Pension - Fire 1,941,594 81,491 81,491 81,281 82,912
505.61 Pension Payment - Fire - 1,748,933 1,585,000 1,901,652 2,150,000
505.66 Disability Payment - Fire - 218,650 300,000 219,626 300,000
505.71 Pension Refund - Fire 1,818 92,594 - - -
15 - Taxes and Benefits 1,943,411 2,141,667 1,966,491 2,202,559 2,532,912
Percent Change 2017 vs. 2016 Budget 28.80%
50 - Other Expenses
28.80%
580.05 All Other Expenses 42,368 48,361 40,000 45,348 50,000
580.40 Investment Fees 147,363 124,530 125,000 143,499 150,000
50 - Other Expenses 189,731 172,891 165,000 188,847 200,000
Percent Change 2017 vs. 2016 Budget 21.21%
Department Total: 89 - Fire Pension 2,133,142 2,314,558 2,131,491 2,391,406 2,732,912
Percent Change 2017 vs. 2016 Budget 28.22%
280
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Section 10
Other Funds
Parking Lot Fund
Debt Service Fund
Parking Lot Fund
The Parking Lot Fund provides for the accounting of both revenues and expenditures related to the Village’s
operation of the commuter station parking lot at the Canadian National/METRA site. Rates for daily parking are
$2.00/day. The Village offers a bi-monthly prepaid parking pass for $80.00, which saves commuters time and
money over paying daily. As fuel costs continue to fluctuate and employment numbers steadily increase, the
revenue performance should begin trending upward for Metra fees. Revenues for the commuter rail are tied
directly to the economy and employment trends.
Expenditures are based on projections for maintenance for the parking lot and commuter station. The largest
obligation is for a land lease from Commonwealth Edison. There is an additional contract with PACE that requires
the Village to pay a percentage of revenue to PACE for vehicles parked in the PACE owned area of the parking lot.
The Village has invested significant resources to modernize the Metra parking lot payment system. Commuters
have the option to pay with cash or credit card at the terminals located in the Metra station. Additionally,
payments are accepted through the website of the automated fare box company or through a downloadable app
on supporting smart phone devices at no additional charge by the Village.
Budget Summary
Parking Lot
2015 Actual 2016 Est Actual 2017 Budget
Operating Expenses 156,802 151,004 155,271
Repair & Maintenance 16,050 17,500 17,500
Commodities - 11,250 13,750
Other Expenses - 500 500
Other Financing Uses 12,000 12,000 24,000
Total 184,852 192,254 211,021
Budget Variance
Parking Lot
Line Item
Number Description Percent
Change
Dollar Amount
Change Description of Change
510.10 Maintenance Contracts 156% 3,900 Online pass sales.
510.83 Credit Card Fees -10% (750) Decrease in historical trend.
530.20 Gas – Facilities -12.50% (250) Decrease in historical trend.
570.10 Operating Transfers Corporate
Fund 100% 12,000 Reimburse operating fund.
184,852
192,254
211,021
Total
Parking Lot Fund
2015 Actual 2016 Est Actual 2017 Budget
284
Revenue
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 120 - Metra Parking Lot Fund
35 - Fines and Fees
455.70 Parking Fees - Daily Metra 54,330 57,907 62,700 70,000 70,000
455.75 Parking Fees - Parking Passes 125,816 124,750 166,250 140,000 140,000
35 - Fines and Fees 180,146 182,656 228,950 210,000 210,000
Percent Change 2017 vs. 2016 Budget -8.28%
50 - Miscellaneous Revenue
465.20 Facility Rental 1,097 672 1,050 1,200 1,200
50 - Miscellaneous Revenue $1,096.85 $672.28 $1,050.00 $1,200.00 $1,200.00
Percent Change 2017 vs. 2016 Budget 14.29%
Fund Total: 120-Metra Parking Lot 181,243 183,329 230,000 211,200 211,200
Percent Change 2017 vs. 2016 Budget -8.17%
285
Expenses
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 120 - Metra Parking Lot Fund
10 - Salaries
500.10 Part Time 1,403 - - - -
10 - Salaries 1,403 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
15 - Taxes and Benefits
505.75 Employer's Contribution - FICA 87 - - - -
505.85 Employer's Contribution Medicare 20 - - - -
15 - Taxes and Benefits 107 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
25 - Operating Expenses
510.10 Maintenance Contracts 2,861 1,548 2,500 6,400 6,400
510.50 Supplies - All Other 1,604 3,160 1,800 250 1,800
510.83 Credit Card Fees 6,076 9,223 7,500 6,500 6,750
510.92 Lease Payments 118,989 125,228 123,354 123,354 125,821
510.95 Pace Fees 11,847 17,644 14,500 14,500 14,500
25 - Operating Expenses 141,378 156,802 149,654 151,004 155,271
Percent Change 2017 vs. 2016 Budget 3.75%
40 - Repairs and Maintenance
535.20 Facilities Buildings & Facilities 73,747 4,800 15,000 15,000 15,000
535.25 Facilities Parking Lots 2,900 11,250 2,500 2,500 2,500
40 - Repairs and Maintenance 76,647 16,050 17,500 17,500 17,500
Percent Change 2017 vs. 2016 Budget 0.00%
45 - Commodities
530.05 Electricity - Facilities - - 10,000 8,000 10,000
530.10 Electricity - Street Lights - - 2,000 1,500 2,000
530.20 Gas - Facilities - - 2,000 1,750 1,750
45 - Commodities - - 14,000 11,250 13,750
Percent Change 2017 vs. 2016 Budget -1.79%
50 - Other Expenses
580.05 All Other Expenses - - 500 500 500
50 - Other Expenses - - 500 500 500
Percent Change 2017 vs. 2016 Budget 0.00%
65 - Other Financing Uses
570.10 Operating Transfers Corp Fund - 12,000 12,000 12,000 24,000
65 - Other Financing Uses - 12,000 12,000 12,000 24,000
Percent Change 2017 vs. 2016 Budget 100.00%
Fund: 120 - Metra Parking Lot Fund 219,535 184,852 193,654 192,254 211,021
Percent Change 2017 vs. 2016 Budget 8.97%
286
Debt Service Fund
The Debt Service Fund provides for the payment of principal, interest and fiscal agent fees on corporate purpose
general obligation bonds. All bonds were issued to fund various capital development and construction projects in
the Village. As of January 1, 2017, the Village has $15.64 million in outstanding general obligation debt with an
average interest rate of 2.56 percent. Property taxes will be levied as the primary funding source for the annual
principal and interest payments.
The Village Board has adopted a policy that governs debt issuance. As tenets of that policy (1) no debt financing
will be used to finance current expenditures, (2) capital projects will not be financed beyond their useful lives, (3)
total outstanding general obligation debt will not exceed the amount allowed non-home rule municipalities and (4)
pay-as-you-go financing is the preferred method of financing. The Village’s bond rating was upgraded in 2010 to
AAA by Standard & Poor’s and Moody’s Investor Services and the Village affirmed that rating in 2016 for existing as
well as new debt.
Budget Summary
Debt Service Fund
2015 Actual 2016 Est Actual 2017 Budget
Debt Service 806,748 810,000 1,679,144
Total 806,748 810,000 1,679,144
Budget Variance
Debt Service
Line Item Number Description Percent Change Dollar Amount Change Description of Change
565.10 Principal 142.86% 750,000 2016 bond issue.
565.20 Interest 41.51% 117,081 2016 bond issue.
565.30 Paying Agent Fees 66.67% 2,000 2016 bond issue.
287
806,748 810,000
1,679,144
Total
Debt Service Fund
2015 Actual 2016 Est Actual 2017 Budget
288
Revenue
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 140 - Debt Service Fund
10 - Property Taxes
400.40 Debt Service - Lake County 683,772 480,076 149,456 149,456 889,120
400.41 Debt Service - Cook County 206,195 147,981 477,607 477,607 280,775
10 - Property Taxes 889,967 628,057 627,063 627,063 1,169,895
Percent Change 2017 vs. 2016 Budget 86.57%
45 - Interest Income
450.10 Investment Pool 31 - - - -
45 - Interest Income 31 - - - -
Percent Change 2017 vs. 2016 Budget 0.00%
50 - Miscellaneous Revenue
465.90 Miscellaneous Income - - - 8,219 -
50 - Miscellaneous Revenue - - - 8,219 -
Percent Change 2017 vs. 2016 Budget 0.00%
55 - Operating Transfers
460.05 Interfund Transfers In 200,000 180,000 180,000 180,000 504,000
55 - Operating Transfers 200,000 180,000 180,000 180,000 504,000
Percent Change 2017 vs. 2016 Budget 180.00%
Fund Total: 140 - Debt Service 1,089,998 808,057 807,063 815,282 1,673,895
Percent Change 2017 vs. 2016 Budget
107.41%
289
Expenses
Description 2014
Actual
2015
Actual
2016
Budget
2016 Est
Actual
2017
Budget
Fund: 140 - Debt Service Fund
Department: 85 - Debt
60 - Debt Service
565.10 Principal 790,000 510,000 525,000 525,000 1,275,000
565.20 Interest 311,513 294,813 282,063 282,000 399,144
565.30 Paying Agent Fees 2,151 1,935 3,000 3,000 5,000
60 - Debt Service 1,103,664 806,748 810,063 810,000 1,679,144
Percent Change 2017 vs. 2016 Budget 107.29%
Fund Total: 140 - Debt Service 1,103,664 806,748 810,063 810,000 1,679,144
Percent Change 2017 vs. 2016 Budget 107.29%
290
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Appendix A
Comprehensive Fee and Tax Schedule
Buffalo Grove
Municipal Code
Section
Classification Fee
2.63.130 subsection B. Expense of preparing and filing a certified report with the Secretary of
State. $20.00
3.06.020 subsection A. All one and two family dwelling - variations for principal structures $125.00
3.06.020 subsection A. All one and two family dwelling - variations other than principal
structures $75.00
3.06.020 subsection B. All multiple family dwellings - variations for principal structures $175.00
3.06.020 subsection B. All multiple family dwellings - variations, other than principal structures $125.00
3.06.020 subsection C. All business, office/research and industrial buildings - variations for
principal structures $175.00
3.06.020 subsection C. All business, office/research and industrial buildings - variations, other
than principal structures $125.00
3.06.020 subsection D. To appeal a decision of the Building Commissioner $175.00
3.06.020 subsection E. Variation for special uses property in R-E through R-7 districts $100.00
3.06.020 subsection E. Variation for special uses property in all other districts $200.00
3.06.020 subsection F. Planned unit development (PUD) amendment - variation $100.00
3.06.020 subsection F. Planned unit development (PUD) new development - variation $200.00
3.06.020 subsection G. Rezoning or variation (if not part of a petition for special use or PUD) $200.00
3.06.020 subsection H. Zoning text amendment - variation $100.00
3.06.020 subsection I. Concept/preliminary plan review for sites five acres or less -variation $150.00
3.06.020 subsection I. Concept/preliminary plan review per acre (or fraction thereof) for sites
larger than five acres - variation $25.00
3.06.030 subsection A. Special uses for property in R-E through R-7 districts. Petition filing fee $100.00
3.06.030 subsection A. Special uses for property in all other districts. Petition filing fee $200.00
293
Buffalo Grove
Municipal Code
Section
Classification Fee
3.06.030 subsection B. Planned unit development (PUD) amendment. Petition filing fee $100.00
3.06.030 subsection B. Planned unit development (PUD) new development. Petition filing fee $200.00
3.06.030 subsection C. Rezoning or variation (if not part of a petition for special use or PUD).
Petition filing fee $200.00
3.06.030 subsection D. Zoning text amendment. Petition filing fee $100.00
3.06.030 subsection E. Concept/preliminary plan review for sites five acres or less. Petition
filing fee $150.00
3.06.030 subsection E. Concept/preliminary plan review per acre (or fraction thereof) for sites
larger than five acres. Petition filing fee $25.00
3.06.030 subsection G. Development Ordinance variation for residential property. Petition
filing fee $125.00
3.20.060 subsection A. For industrial projects or pollution control facility revenue bonds
One-tenth of one percent of
the principal amount of any
bonds issued pursuant to
the provisions of Chapter
3.20.
3.20.060 subsection B. For multi-family housing project revenue bonds
One percent of the principal
amount of any bonds issued
pursuant to the provisions
of Chapter 3.20.
3.36.030 Nonresident who utilizes the emergency medical service: BLS $800.00*
3.36.030 Nonresident who utilizes the emergency medical service: ALS Level 1 $950.00*
3.36.030 Nonresident who utilizes the emergency medical service: ALS Level 2 $1,100.00*
3.36.030 Nonresident who utilizes the emergency medical service: Treat, Non-
Transport $175.00*
3.36.030 Nonresident who utilizes the emergency medical service: Mileage/mile $13.50*
3.36.030 Resident who utilizes the emergency medical service: BLS $600.00
3.36.030 Resident who utilizes the emergency medical service: ALS Level 1 $700.00
3.36.030 Resident who utilizes the emergency medical service: ALS Level 2 $900.00
3.36.030 Resident who utilizes the emergency medical service: Treat, Non-
Transport $0.00
294
Buffalo Grove
Municipal Code
Section
Classification Fee
3.36.030 Resident who utilizes the emergency medical service: Mileage/mile $13.50
3.36.030 *Nonresident annual fee increase
Beginning January 1, 2017
the fees for non-residents
shall increase by five
percent and each year
thereafter.
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Motor Vehicle Incidents Level 1 $435.00
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Motor Vehicle Incidents Level 2 $495.00
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Motor Vehicle Incidents Level 3 $605.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Motor Vehicle Incidents Level 4 $900.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Motor Vehicle Incidents Level 4 $1,800.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Motor Vehicle Incidents Level 5 $1,100.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Motor Vehicle Incidents Level 5 $2,200.00
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Motor Vehicle Incidents Level 6 Itemized
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Hazardous Materials Incidents Level 1 $350.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Hazardous Materials Incidents Level 1 $700.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Hazardous Materials Incidents Level 2 $1,250.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Hazardous Materials Incidents Level 2 $2,500.00
295
Buffalo Grove
Municipal Code
Section
Classification Fee
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Hazardous Materials Incidents Level 3 $2,500.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Hazardous Materials Incidents Level 3 $5,900.00
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Haz Mat Technician per hour $50.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Pipeline/ Power line Incidents Level 1 $200.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Pipeline/ Power line Incidents Level 1 $400.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Pipeline/ Power line Incidents Level 2 $500.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Pipeline/ Power line Incidents Level 2 $1,250.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Pipeline/ Power line Incidents Level 3 Itemized
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Pipeline/ Power line Incidents Level 3 Itemized
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Fire Investigations per hour $275.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Water Incidents Level 1 $200.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Water Incidents Level 1 $400.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Water Incidents Level 2 $400.00
296
Buffalo Grove
Municipal Code
Section
Classification Fee
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Water Incidents Level 2 $800.00
3.38.030 Resident who utilizes the emergency services of the Buffalo Grove Fire
Department: Water Incidents Level 3 $1,000.00
3.38.030 Nonresident who utilizes the emergency services of the Buffalo Grove
Fire Department: Water Incidents Level 3 $2,000.00
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Water Incidents Technician per hour $50.00
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: specialized rescue Itemized
3.38.030 Nonresident or resident who utilizes the emergency services of the
Buffalo Grove Fire Department: Technician per hour $50.00
3.52.020 subsection A. Daily fee for the purpose of parking within the Village's commuter
parking $2.00
3.52.030 Parking for a defined two-month period paid the 1st through 15th of
first month $80.00
3.52.030 Parking for a defined two-month period paid the 16th through end of
first month $60.00
3.52.030 Parking for a defined two-month period paid the 1st through 15th of
second month $40.00
3.52.030 Parking for a defined two-month period paid the 16th through end of
second month $20.00
3.52.055 subsection B. Daily fee for parking within a commuter parking lot (from 6:00 a.m. to
8:00 p.m.) $1.50
3.56.030 subsection A. Telecommunication infrastructure maintenance fee
1% of all gross charges by
telecommunications retailer
to service addresses within
the Village for
telecommunications
originating or received in
the Village
3.65.030 subsection A. Gas tax $0.05 per therm
3.70.010 Administrative fee for persons arrested, processed and released on bail $20.00
3.71.030 subsections C. Stormwater utility fee tier 1: residential (single family attached and
detached). Annual fee $60.96
297
Buffalo Grove
Municipal Code
Section
Classification Fee
3.71.030 subsections C. Stormwater utility fee tier 2: multi-family, commercial and industrial.
Annual fee
$0.006950 × Property
Square Footage
3.72.010 Fingerprinting service $50.00
3.72.020 Local records check for visa/immigration matters $15.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office up to 5,000 square feet $90.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office up to 10,000 square feet $150.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office up to 20,000 square feet $200.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office up to 50,000 square feet $300.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office up to 75,000 square feet $350.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office up to and including 100,000 square feet $400.00
5.04.110 subsection A. Annual fee for a business license for service/retail and wholesale
sales/office more than 100,000 square feet $450.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office up to 5,000 square feet $45.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office up to 10,000 square feet $75.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office up to 20,000 square feet $100.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office up to 50,000 square feet $150.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office up to 75,000 square feet $175.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office up to and including 100,000 square feet $200.00
5.04.110 subsection A. Annual fee after July 1st for a business license for service/retail and
wholesale sales/office more than 100,000 square feet $225.00
298
Buffalo Grove
Municipal Code
Section
Classification Fee
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office up to 5,000 square feet $135.00
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office up to 10,000 square feet $225.00
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office up to 20,000 square feet $300.00
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office up to 50,000 square feet $450.00
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office up to 75,000 square feet $525.00
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office up to and including 100,000 square feet $600.00
5.04.110 subsection A. Renewal fee after January 15th for a business license for service/retail
and wholesale sales/office more than 100,000 square feet $675.00
5.04.110 subsection A. License fee for a food establishment or service/retail with food
accessory up to 5,000 square feet $100.00
5.04.110 subsection A. License fee for a food establishment or service/retail with food
accessory up to 10,000 square feet $150.00
5.04.110 subsection A. License fee for a food establishment or service/retail with food
accessory up to and including 20,000 square feet $200.00
5.04.110 subsection A. License fee for a food establishment or service/retail with food
accessory more than 20,000 square feet $250.00
5.04.110 subsection A. License fee after July 1st for a food establishment or service/retail with
food accessory up to 5,000 square feet $50.00
5.04.110 subsection A. License fee after July 1st for a food establishment or service/retail with
food accessory up to 10,000 square feet $75.00
299
Buffalo Grove
Municipal Code
Section
Classification Fee
5.04.110 subsection A. License fee after July 1st for a food establishment or service/retail with
food accessory up to and including 20,000 square feet $100.00
5.04.110 subsection A. License fee after July 1st for a food establishment or service/retail with
food accessory more than 20,000 square feet $125.00
5.04.110 subsection A. License renewal fee after Jan 15th for a food establishment or
service/retail with food accessory up to 5,000 square feet $150.00
5.04.110 subsection A. License renewal fee after Jan 15th for a food establishment or
service/retail with food accessory up to 10,000 square feet $225.00
5.04.110 subsection A.
License renewal fee after Jan 15th for a food establishment or
service/retail with food accessory up to and including 20,000 square
feet
$300.00
5.04.110 subsection A. License renewal fee after Jan 15th for a food establishment or
service/retail with food accessory with more than 20,000 square feet $375.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 100,000 square feet $200.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 150,000 square feet $250.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 200,000 square feet $300.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 250,000 square feet $350.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 300,000 square feet $400.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 350,000 square feet $450.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 400,000 square feet $500.00
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5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to 450,000 square feet $550.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) up to and including 500,000 square feet $600.00
5.04.110 subsection A. License fee for industrial/research and development (including industrial
w/food accessory or processing) more than 500,000 square feet $700.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 100,000
square feet
$100.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 150,000
square feet
$125.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 200,000
square feet
$150.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 250,000
square feet
$175.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 300,000
square feet
$200.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 350,000
square feet
$225.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 400,000
square feet
$250.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to 450,000
square feet
$275.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) up to and including
500,000 square feet
$300.00
5.04.110 subsection A.
License fee after July 1st for industrial/research and development
(including industrial w/food accessory or processing) more than 500,000
square feet
$350.00
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5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
100,000 square feet
$300.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
150,000 square feet
$375.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
200,000 square feet
$450.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
250,000 square feet
$525.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
300,000 square feet
$600.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
350,000 square feet
$675.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
400,000 square feet
$750.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
450,000 square feet
$825.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) up to
and including 500,000 square feet
$900.00
5.04.110 subsection A.
License fee renewal after January 15th for industrial/research and
development (including industrial w/food accessory or processing) more
than 500,000 square feet
$1,050.00
5.04.110 subsection A. Licensee fee for hotel/motel up to and including 150,000 square feet $750.00
302
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5.04.110 subsection A. Licensee fee for hotel/motel more than 150,000 square feet $1,000.00
5.04.110 subsection A. Licensee fee after July 1st for hotel/motel up to and including 150,000
square feet $375.00
5.04.110 subsection A. Licensee fee after July 1st for hotel/motel more than 150,000 square
feet $500.00
5.04.110 subsection A. Licensee fee renewal after January 15th for hotel/motel up to and
including 150,000 square feet $1,125.00
5.04.110 subsection A. Licensee fee renewal after January 15th for hotel/motel more than
150,000 square feet $1,500.00
5.04.170 Day care business license
$85.00 annually, $42.50 if
purchased on or after July
1st of any year
5.08.050 subsection A. Amusement permit fee $50.00
5.08.050 subsection B. Carnival fee $10.00 per day
5.08.050 subsection C. Mechanical inspection fee (charged per ride per day) $5.00
5.10.040 subsection A. Arts and crafts vendor six days or fewer $20.00
5.10.040 subsection A. Arts and crafts vendor per week $50.00
5.10.040 subsection A. Arts and crafts vendor per month $75.00
5.10.040 subsection A. Arts and crafts vendor per year $150.00
5.12.050 Amusement device fee
$50.00 for each device;
however, for any license
issued between November
1st and April 30th of the
following calendar year, the
fee shall be $25.00 for each
device.
5.20.070 subsection A. Class A liquor license $2,500.00
5.20.070 subsection B. Class B liquor license $2,300.00
5.20.070 subsection C. Class C liquor license $2,500.00
5.20.070 subsection D. Class D liquor license $1,800.00
5.20.070 subsection D. Class D liquor license, if authorized by the Liquor Control Commissioner
and approved by the Village Board, combined with a Class A or Class B
$300.00 plus cost of Class A
or Class B liquor license
5.20.070 subsection D1. Class D1 liquor license $1,800.00
5.20.070 subsection E. Class E liquor license $1,500.00
5.20.070 subsection F.4. Class F liquor license $2,000.00
5.20.070 subsection
G.1.d. Class G1 liquor license $25.00
5.20.070 subsection
G.2.c. Class G2 liquor license $100.00
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5.20.070 subsection
G.3.c. Class G3 liquor license $25.00
5.20.070 subsection
G.4.b. Class G4 liquor license $25.00
5.20.070 subsection
G.5.d. Class G5 liquor license $25.00
5.20.070 subsection
G.6.d. Class G6 liquor license $25.00
5.20.070 subsection
G.7.c. Class G7 liquor license $100.00
5.20.070 subsection H.4. Class H liquor license $250.00
5.20.070 subsection I. Class I liquor license $1,200.00
5.20.070 subsection J. Class J liquor license $4,000.00
5.20.070 subsection K. Class K liquor license $4,000.00
5.20.071 First time liquor license applicant fee $500.00
5.20.075 subsection B.2. Monthly tasting permit $25.00
5.20.075 subsection C.2. Yearly tasting permit $1,000.00
5.20.090 subsection B. Fee for a make-up liquor/alcohol awareness training seminar shall not exceed $500.00
per licensee
5.20.100 subsection C. Fee to transfer liquor license $100.00
5.20.155 subsection D. Application fee for video gaming (regardless of number of terminals) $250.00
5.20.155 subsection E. Annual fee for video gaming locations $1,000.00
5.20.165 subsection C.4. Processing fee for special server application for minors $35.00
5.24.050 subsection B. Solicitor permits
$50.00 (which includes one
solicitor) plus $15.00 for
each additional person that
is added to the permit
5.28.020 subsection E. Business public passenger vehicle license fee
$50.00, provided that the
fee for licenses issued for
less than a year shall be
prorated for the period
from the date of issuance to
the end of the year.
5.28.030 subsection E. Annual fee for a public passenger vehicle license $20.00
5.28.030 subsection E. Annual fee for a public passenger vehicle license issued July 1st or after $10.00
5.28.150 subsection G. Chauffeur’s license original application filing fee $75.00
5.28.150 subsection G. Chauffeur’s license renewal application filing fee $35.00
5.32.040 Tobacco dealer's license $75.00
5.32.070 Tobacco dealer license fee for mechanical devices (for each mechanical
device) $50.00
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5.44.050 Massage establishment license application fee
$250.00, provided the fee
for licenses issued for less
than a calendar year shall
be prorated for the period
from the date of issuance to
December 31st of that year.
5.46.040 subsection B. Application fee for initial license for a pawnbroker or resale shop dealer $250.00
5.46.060 Resale shop license fee $1,500.00
5.46.060 Pawn shop license fee $2,000.00
5.52.050 Food/beverage vending machines license per year $30.00
5.52.050 Food/beverage vending machines license for half of a year $15.00
5.52.070 Health Officer reinspection fee for a food/beverage vending machine $10.00
5.70.050 subsection B. Processing fee for an Adult Establishment license or renewal $200.00
6.08.030 subsection C. Animal impound fee per day $15.00
6.08.030 subsection C. Additional fee for animals not wearing a current license tag (in addition
to the payment for a license if the animal is unlicensed) $100.00
6.08.030 subsection C. Additional fee for dogs running at large $50.00
6.08.030 subsection C. Additional fee for second and subsequent offenses of a dog running at
large $100.00
6.12.020 subsection A. Tag fee for each dog or cat $1.00
6.12.020 subsection D. Licensee fee for cats, dogs and animals.
$10.00, except for an animal
found to be a potentially
dangerous shall be $50.00.
There shall be no license fee
for dogs leading special
needs persons, or dogs use
as part of law enforcement.
8.16.020 subsection C. Annual fee for a food-vending vehicle license $100.00
8.16.030 Food-vending vehicle mobile food vendor permit original application
fee. $75.00
8.16.030 Food-vending vehicle mobile food vendor permit renewal application
fee. $35.00
8.20.170 Licensee fee for garbage and refuse removal services $500.00
8.44.040 subsection B.1. Annual licensing fee to operate a swimming pool $50.00
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9.04.030 subsection A. Alarm registration fee for both original and renewal permits for any
single police burglar alarm or single fire alarm for any occupancy. $10.00
9.04.030 subsection A. Alarm registration fee for both original and renewal permits for any
combination fire/police alarm for any occupancy. $20.00
9.04.080 For the first response to premises at which no other false alarm has
occurred within the Annual Period $0.00
9.04.080 For the second response to premises at which a previous false alarm has
occurred within the Annual Period $75.00
9.04.080 For the third response to premises at which a previous false alarm had
occurred within the Annual Period $125.00
9.04.080 For the fourth response to premises at which a previous false alarm had
occurred within the Annual Period $175.00
9.04.080 For the fifth through ninth responses to premises at which a previous
false alarm had occurred within the Annual Period $200.00
9.04.080 For the tenth or more responses to premises at which a previous false
alarm had occurred within the Annual Period $250.00
BG-15-307 subsection B.
Category 1A: fee for single vehicle with 2 axles, max weight across axles
of 48000 and max weight on any single axle of 25000 for a single trip;
round trip; quarterly and annually
$15.00; $25.00; $85.00;
$340.00
BG-15-307 subsection B.
Category 2A: fee for single vehicle with 2 axles, max weight across axles
of 54000 and max weight on any single axle of 28000 for a single trip;
round trip; quarterly and annually
$20.00; $35.00; $100.00;
$400.00
BG-15-307 subsection B.
Category 3A: fee for single vehicle with 3+ axles, max weight across
axles of 60000, max weight on any single axle of 21000 and max weight
for any 2 axle tandem of 40000 for a single trip; round trip; quarterly
and annually
$25.00; $45.00; $115.00;
$460.00
BG-15-307 subsection B.
Category 4A: fee for single vehicle with 3+ axles, max weight across
axles of 68000, max weight on any single axle of 25000 and max weight
for any 2 axle tandem of 48000 for a single trip; round trip; quarterly
and annually
$30.00; $55.00; $130.00;
$520.00
BG-15-307 subsection B.
Category 5A: fee for single vehicle with 3+ axles, max weight across
axles of 72000, max weight on any single axle of 25000 and max weight
for any 2 axle tandem of 48000 for a single trip; round trip; quarterly
and annually
$60.00; $115.00; $270.00;
$1080.00
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BG-15-307 subsection B.
Category 6A: fee for single vehicle with 3+ axles, max weight across
axles of 80000, max weight on any single axle of 27000 and max weight
for any 2 axle tandem of 54000 for a single trip; round trip; quarterly
and annually
$70.00; $135.00; $285.00;
$1140.00
BG-15-307 subsection B.
Category 7A: fee for single vehicle with 4+ axles, max weight across
axles of 72000, max weight on any single axle of 21000 and max weight
for any 2 axle tandem of 40000 for a single trip; round trip; quarterly
and annually
$35.00; $65.00; $145.00;
$580.00
BG-15-307 subsection B.
Category 8A: fee for single vehicle with 4+ axles, max weight across
axles of 76000, max weight on any single axle of 23000 and max weight
for any 2 axle tandem of 44000 for a single trip; round trip; quarterly
and annually
$40.00; $75.00; $160.00;
$640.00
BG-15-307 subsection B.
Category 9A: fee for single vehicle with 4+ axles, max weight across
axles of 80000, max weight on any single axle of 27000, max weight for
any 2 axle tandem of 54000, and max weight on 3 or 4 axle group of
60,000 for a single trip; round trip; quarterly and annually
$60.00; $100.00; $225.00;
$900.00
BG-15-307 subsection B.
Category 1B: fee for single combination vehicle with 5+ axles, max
weight across axles of 88000, max weight on any single axle of 23000
and max weight for any 2 axle tandem or 3 or 4 axle group 44000 for a
single trip; round trip; quarterly and annually
$30.00; $55.00; $190.00;
$760.00
BG-15-307 subsection B.
Category 2B: fee for single combination vehicle with 5+ axles, max
weight across axles of 100000, max weight on any single axle of 25000
and max weight for any 2 axle tandem or 3 or 4 axle group 48000 for a
single trip; round trip; quarterly and annually
$40.00; $75.00; $220.00;
$880.00
BG-15-307 subsection B.
Category 3B: fee for single combination vehicle with 6+ axles, max
weight across axles of 110000, max weight on any single axle of 23000,
max weight for any 2 axle tandem of 44000 and max for any 3 or 4 axle
group of 54000 for a single trip; round trip; quarterly and annually
$45.00; $85.00; $235.00;
$940.00
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BG-15-307 subsection B.
Category 4B: fee for single combination vehicle with 6+ axles, max
weight across axles of 120000, max weight on any single axle of 25000,
max weight for any 2 axle tandem of 48000 and max for any 3 or 4 axle
group of 60000 for a single trip; round trip; quarterly and annually
$50.00; $95.00; $250.00;
$1000.00
BG-15-307 subsection B.
Category 5B: fee for single combination vehicle with 6+ axles, max
weight across axles of 143000, max weight on any single axle of 27000,
max weight for any 2 axle tandem of 54000 and max for any 3 or 4 axle
group of 78000 for a single trip; round trip; quarterly and annually
$60.00; $115.00; $325.00;
$1300.00
BG-15-307 subsection B.
Category 6B: fee for single combination vehicle with 7+ axles, max
weight across axles of 162000, max weight on any single axle of 25000,
max weight for any 2 axle tandem of 50000, max for any 3 axle group of
75000 and max for any four axle group of 10000 for a single trip; round
trip; quarterly and annually
$70.00; $135.00; $400.00;
$1600.00
BG-15-307 subsection B.
Category 7B: fee for single combination vehicle with 7+ axles, max
weight across axles of 187000, max weight on any single axle of 25000,
max weight for any 2 axle tandem of 50000, max for any 3 axle group of
75000 and max for any four axle group of 10000 for a single trip; round
trip; quarterly and annually
$80.00; $155.00; $500.00;
$2000.00
BG-15-307 subsection B.
Category 1C: fee for over dimension (oversized vehicles) with a max
sizes: WIDTH: 10'; HEIGHT: 13'6"; LENGTH: 115' for single trip, round
trip, quarterly and annually
$15.00; $25.00; $75.00;
$300.00
BG-15-307 subsection B.
Category 2C: fee for over dimension (oversized vehicles) with a max
sizes: WIDTH: 12'; HEIGHT: 13'6"; LENGTH: 115' for single trip, round
trip, quarterly and annually
$20.00; $40.00; $120.00;
$480.00
BG-15-307 subsection B.
Category 3C: fee for over dimension (oversized vehicles) with a max
sizes: WIDTH: 14'; HEIGHT: 13'6"; LENGTH: 115' for single trip, round
trip, quarterly and annually
$30.00; $55.00; $165.00;
$660.00
BG-15-307 subsection B.
Category 4C: fee for over dimension (oversized vehicles) with a max
sizes: WIDTH: 18'; HEIGHT: 16'; LENGTH: 135' for single trip and round
trip
$50.00; $95.00
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BG-15-307 subsection B.
Category 5C: fee for over dimension (oversized vehicles) with a max
sizes: WIDTH: >18'; HEIGHT: >16'; LENGTH: >135' for single trip and
round trip
$100.00; $195.00
10.20.040 Administrative fee for a properly impounded vehicle $500.00
10.20.050 subsection C. Administrative fee for a properly impounded vehicle to be posted for a
vehicle to be released prior to a preliminary probable cause hearing $500.00
12.04.040 subsection F. Application fee for construction of any facility that affects a public right-
of-way $750.00
12.08.030 Driveway apron, service walk, carriage walk or other appurtenance
permit fee $50.00
13.04.040 subsection B. Water system improvement fee for single-family dwelling $680.00
13.04.040 subsection B. Water system improvement fee for townhouse $585.00
13.04.040 subsection B. Water system improvement fee for condominium unit $485.00
13.04.040 subsection B. Water system improvement fee for multi-family apartment unit $390.00
13.04.040 subsection B. Water system improvement fee for business, commercial or industrial $95.00 per 100 gallons of
maximum daily usage
13.04.060 Fee for connecting to a water main for each 1 inch water connection
(which includes labor cost but not the cost of the meter) $100.00
13.04.060 Fee for connecting to a water main for each 1.25 inch water connection
(which includes labor cost but not the cost of the meter) $125.00
13.04.060 Fee for connecting to a water main for each 1.5 inch water connection
(which includes labor cost but not the cost of the meter) $150.00
13.04.060 Fee for connecting to a water main for each 2 inch water connection
(which includes labor cost but not the cost of the meter) $400.00
13.04.060 Fee for connecting to a water main for each 2.5 inch water connection
(which includes labor cost but not the cost of the meter) $625.00
13.04.060 Fee for connecting to a water main for each 3 inch water connection
(which includes labor cost but not the cost of the meter) $900.00
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13.04.060 Fee for connecting to a water main for each 4 inch water connection
(which includes labor cost but not the cost of the meter) $1,600.00
13.04.060 Fee for connecting to a water main for each 6 inch water connection
(which includes labor cost but not the cost of the meter) $1,800.00
13.04.060 Fee for connecting to a water main for each 8 inch water connection
(which includes labor cost but not the cost of the meter) $2,000.00
13.04.180 subsection C. Cost to remove, test and replacement water meter
$150.00, provided the cost
may increase if additional
work is required to shut off
the water or otherwise
complete the test.
13.04.190 subsection B. Annual increase for each user/consumer of water services
Beginning January 1, 2015
the water service rate will
be increased by four
percent (4%) each year
thereafter.
13.04.190 subsection C. Monthly basic charge to each user/consumer of water service $1.90
13.04.210 Fee a contractor or owner to use water before water is installed on any
building where the value of construction is between $0 and $29,999.99 $17.50
13.04.210
Fee a contractor or owner to use water before water is installed on any
building where the value of construction is between $30,000 and
$49,999.99
$18.50
13.04.210
Fee a contractor or owner to use water before water it is installed on
any building where the value of construction is between $50,000 and
$74,999.99
$20.00
13.04.210 Fee a contractor or owner to use water before water it is installed on
any building where the value of construction is $75,000 or more
$20.00 plus $0.25 per
thousand dollars in excess
of $75,000
13.04.230 Surcharge if Village cannot access to read, examine, test, replace and
repair water meters (per water billing period) $100.00
13.04.250 subsection A. Reconnection fee for delinquent payment $50.00
13.04.250 subsection A. Reconnection fee for delinquent payment if reconnected after 4:00 pm
Monday through Friday or on Saturday or Sunday $100.00
13.04.250 subsection D. Processing fee if the reconnection fee is returned due to insufficient
funds $25.00
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Classification Fee
13.04.290 subsection A.3. Sewer user charges for each user/consumer serviced by the Lake County
sanitary sewer.
$4.00 per 1,000 gallons of
water consumed
13.04.290 subsection D.
Sewer user rate basic charge for operation, maintenance and
replacement
Beginning January 1, 2015
the basic unit charge of
$1.05 will increase by four
percent (4%) each year
thereafter.
13.04.290 subsection D. The bimonthly fixed sewer user rate for all non-metered residential
users
Beginning January 1, 2015
the bimonthly fixed rate for
all non-metered residential
users of $15.60 shall
increase by four percent
(4%) each year thereafter.
13.04.310 subsection B. Permit and inspection fee for construction of a private sewage disposal
system $25.00
13.04.320 subsection F.1. Fee paid per 6 inch connection to the Village sewer system $50.00
13.04.320 subsection F.1. Fee paid per 8 inch connection to the Village sewer system $200.00
13.04.320 subsection F.1. Fee paid per 10 inch connection to the Village sewer system $300.00
13.04.320 subsection F.2. Fees paid for each connection to the Village sewer system in Lake
County per residential unit $5,150.00
13.04.320 subsection F.2. Fees paid for each connection to the Village sewer system in Lake
County per industrial, commercial and institutional
$5150.00 per single-family
residential equivalent.
13.05.130 subsection B. Water reconnection fee after defects and corrections have been
eliminated $1,500.00
13.18.090 Review of plans and inspection fee for each water well permit issued. $500.00
14.12.030 subsection A. Wall signs, non-illuminated
$50.00 plus $0.25 cents per
square foot of larger face,
plus $50.00 plan review fee
14.12.030 subsection A. Wall signs, illuminated
$50.00 plus $0.25 cents per
square foot of larger face
$50.00 plan review fee, plus
a $50.00 electrical fee
14.12.030 subsection A. Ground signs
$75.00 plus $0.25 cents per
square foot of larger face,
plus $50.00 plan review fee.
If internally illuminated, a
$50.00 electrical fee shall
apply
14.12.030 subsection A. Banners, pennants, searchlights, balloons or gas-filled figures and Grand
Opening signs $50.00
14.12.030 subsection A. Temporary identification sign $50.00
311
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14.12.030 subsection A. Permit renewal for special signs $50.00
14.12.030 subsection A. Tenant panel sign $50.00
14.12.030 subsection A. For Rent, Sale, Lease signs less than 6 square feet. $0.00
14.12.030 subsection A. For Rent, Sale, Lease signs more than 6 square feet.
$75.00 plus $0.25 cents per
square foot of larger face,
plus $50.00 plan review fee,
plus (if applicable) a $50.00
annual renewal fee
14.12.030 subsection A. An awning sign Priced as a wall sign
14.12.030 subsection A. All other signs requiring a permit, that are not combined with additional
sign fees $50.00
14.20.060 Renewal fee for a “For Rent, Sale, or Lease” sign $50.00
14.40.020 subsection B. Variance application fee $125.00
15.04.020 Section 108.2
subsection A.1. Building permit fee for construction costs up to one thousand dollars. $50.00
15.04.020 Section 108.2
subsection A.1. Building permit fee for construction costs over one thousand dollars.
$50.00 for the first $1,000
of construction cost plus
$10.00 for each additional
$1,000 or fraction thereof.
15.04.020 Section 108.2
subsection A.1. Building permit fee for decks, sheds, gazebos and patios
$50.00 base fee plus fifteen
cents per sq. ft. (not
including any electrical
fees).
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of up to 500 square feet $50.00
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of 501 through 1,000 square feet $75.00
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of 1,001 through 2,000 square feet $125.00
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of 2,001 through 3,000 square feet $175.00
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of 3,001 through 4,000 square feet $200.00
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of 4,001 through 5,000 square feet $250.00
15.04.020 Section 108.2
subsection A.2. Building plan review fee for buildings of 5,001 and over square feet $0.05 per sq. ft.
15.04.020 Section 108.2
subsection A.2.
Alterations and remodeling where it is impractical to compute plan
review fees on a square foot basis
One-quarter percent (.0025)
of the cost of the work to be
performed with a minimum
fee of $50.00
15.04.020 Section 108.2
subsection A.2. Amendment Form plan review fee. $50.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a water heater $50.00
312
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15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a each sump pump pit $15.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a each sewer service $15.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a each water service $15.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a each water meter $15.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a each clean out $10.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a each plumbing fixture or opening not listed $10.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for an in-ground swimming pool $60.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a lawn sprinkler system $4.00/head $75.00
minimum
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a sewer repair $65.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a RPZ installation (new or replacement) $50.00
15.04.020 Section 108.2
subsection A.3. Minimum plumbing fee $50.00
15.04.020 Section 108.2
subsection A.3. Plumbing permit fees for a plan review fee
$50.00 or 25 percent of
building plan review fee,
whichever is greater
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for each closed circuit of 15 AMPS $7.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for each closed circuit of 20 AMPS $12.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for each closed circuit of 30 AMPS $20.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for each closed circuit of 40 AMPS $25.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for each closed circuit of 50 AMPS $30.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for each closed circuit of 60 AMPS $40.00
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 100
AMPS $50.00
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 101
through 200 amp $75.00
313
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15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 201
through 400 amp $100.00
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 401
through 800 amp $150.00
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 801
through 1199 amp $200.00
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 1200
through 4000 amp $250.00
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee for services, including service revisions, of 4001
through 8000 amp $300.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for feeder circuits of 60 through 100 amp $35.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for feeder circuits of 101 through 200 amp $50.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for feeder circuits of 201 through 400 amp $65.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for feeder circuits of 401 through 600 amp $85.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for feeder circuits of 601 through 1000 amp $110.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for feeder circuits of 1001 through 2000 amp $130.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fee for a motor three quarter horsepower or more
The circuit fee plus $25.00
for the first and $15.00 for
each additional
15.04.020 Section 108.2
subsection A.4.
Electrical permit fee except for residential units, the fee for a motor less
than three-quarter horsepower $10.00 plus the circuit fee
15.04.020 Section 108.2
subsection A.4. Audio communications system fee $50.00
15.04.020 Section 108.2
subsection A.4. Burglar alarm system fee $50.00
15.04.020 Section 108.2
subsection A.4. Electronic computer/data processing system fee $50.00
15.04.020 Section 108.2
subsection A.4. Fire alarm system fee $100.00
15.04.020 Section 108.2
subsection A.4. Intercom and public address system fee $50.00 per system
15.04.020 Section 108.2
subsection A.4. Relocatable wired partitions system fee $50.00
15.04.020 Section 108.2
subsection A.4. Temporary wiring system fee $50.00
314
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15.04.020 Section 108.2
subsection A.4. Electrical permit minimum fee for all installations, except signs $50.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fees for a sign of 15 AMPS $7.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fees for a sign of 20 AMPS $12.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fees for a sign of 30 AMPS $20.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fees for a sign of 40 AMPS $25.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fees for a sign of 50 AMPS $30.00
15.04.020 Section 108.2
subsection A.4. Electrical permit fees for a sign of 60 AMPS $40.00
15.04.020 Section 108.2
subsection A.4. Electrical permit minimum plan review fee
$50.00 or 25% of the
building plan review fee—
whichever is greater.
15.04.020 Section 108.2
subsection A.5.
Mechanical permit fees for heating in residential (new or replacement
unit) $50.00
15.04.020 Section 108.2
subsection A.5.
Mechanical permit fees for heating in all non-residential uses (new
installations) per 2,000 square feet or fraction thereof $50.00
15.04.020 Section 108.2
subsection A.5.
Mechanical permit fee for air conditioning (window units not included)
in a residence (new or replacement unit) $50.00
15.04.020 Section 108.2
subsection A.5.
Mechanical permit fee for air conditioning (window units not included)
in any non-residential unit (new installations) per 2,000 sq. ft. or fraction
thereof
$50.00
15.04.020 Section 108.2
subsection A.5. Minimum mechanical permit fee for modification of existing duct work $50.00
15.04.020 Section 108.2
subsection A.5. Mechanical permit fee plan review fee
$50.00 or 25% of building
plan review fee —
whichever is greater
15.04.020 Section 108.2
subsection A.6.
Elevator permit fee - new installation charge per each elevator,
dumbwaiter, moving walk, escalator, conveyor or manlift (includes
initial inspection)
$125.00
15.04.020 Section 108.2
subsection A.6.
Elevator permit fee - Semi-annual inspection/Certificate of compliance
per each inspection per elevator, dumbwaiter, moving walk, escalator,
conveyor or manlift
$80.00
315
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15.04.020 Section 108.2
subsection A.6.
Elevator permit fee - Semi-annual inspection/Certificate of compliance
per each inspection for repairs and reinspection $80.00
15.04.020 Section 108.2
subsection A.6.
Elevator permit fee - Plan review fee for each elevator, conveyor,
dumbwaiter, moving walk, escalator or manlift for buildings of four
stories or less
$175.00
15.04.020 Section 108.2
subsection A.6.
Elevator permit fee - additional fee per floor for every story above four
stories: $10.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, new automatic sprinkler system, each
system, 1-100 heads $125.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, new automatic sprinkler system, every 100
additional heads or fraction thereof $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to an existing system of 20 heads
or less $25.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to an existing system of 21-100
heads $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to an existing system every 100
additional heads or fraction thereof $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to partial system of the domestic
water system $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: standpipes
(each) $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: fire pumps
(each) $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: hood
suppression systems $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: clean agent
extinguishing systems $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: alternate fire
extinguishing systems $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: means of
egress access control systems $50.00
15.04.020 Section 108.2
subsection A.7.
Fire protection system fee, renovation to existing system: plan
review/inspection fee for fire suppression systems $100.00
15.04.020 Section 108.2
subsection A.7.
Fire alarm system fee: new or modification to an existing system (this is
in addition to a $100.00 electrical fee) $60.00
316
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15.04.020 Section 108.2
subsection A.7.
Fire alarm system fee: plan review/inspection fee for fire alarm systems
of 5,000 square feet or less $50.00
15.04.020 Section 108.2
subsection A.7.
Fire alarm system fee: plan review/inspection fee for fire alarm systems
of 5,001 to 10,000 square feet
$5.00 per device (minimum
$100.00)
15.04.020 Section 108.2
subsection A.7.
Fire alarm system fee: plan review/inspection fee for fire alarm systems
of 10,000 square feet or more
$5.00 per device (minimum
$150.00)
15.04.020 Section 108.2
subsection A.8. Above-ground pool installation or alteration permit fee $50.00
15.04.020 Section 108.2
subsection A.9. Plan review fee for the Health Department
$50.00 or 25% of building
plan review fee —
whichever is greater
15.04.020 Section 108.2
subsection A.10.
Any inspection or reinspection not covered by the fees designated in
section 108.2 (per inspection) $50.00
15.04.020 Section 108.2
subsection A.11.
Where work has been started prior to the issuance of a permit, the
normal permit fee shall be increased to
Doubled the original permit
fee (with a minimum of
$50.00 and a maximum of
$1,000.00)
15.04.020 Section 108.2
subsection A.12. The fee for Certificate of Occupancy: residential (per unit) $50.00
15.04.020 Section 108.2
subsection A.12. The fee for Certificate of Occupancy: non-residential (per unit) $150.00
15.04.020 Section 108.2
subsection A.13. Zoning/Code Compliance Letter (non-residential only) $150.00
15.04.020 Section 108.2
subsection A.14. Parking Lot Repairs/Restriping $50.00
15.04.020 Section 108.2
subsection A.15.
Permit fee for Fire Department construction inspections (includes one
reinspection) $50.00
15.04.020 Section 108.2
subsection A.15. Fee per reinspection by the Fire Department after the first reinspection $50.00
15.04.020 Section 108.2
subsection A.15.
Fire Department annual safety inspection fee (original inspection or the
first reinspection) $0.00
15.04.020 Section 108.2
subsection A.15.
Fire Department annual safety inspection fee per reinspection
subsequent to first reinspection $50.00
15.04.020 Section 108.2
subsection A.16. Temporary food service permit fee $75.00
15.20.030 subsection A. Fence permit fee
$35.00 for the first one
hundred lineal feet and
$5.00 for each additional
one hundred lineal feet or
any part thereof
317
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15.32.030 Contractor, subcontractor or construction manager annual fee
$100.00 for the first trade.
If registering for more than
one trade then $100.00 for
the first trade and $50.00
for each subsequent trade.
Any contractor registering
on or after July 1st will pay
one-half the required fee
until the end of the year.
15.32.040 subsection A.2. Electrical contractor annual registration fee $50.00
15.36.050 subsection C.
New license or renewal license for renting a single family home,
condominium, townhome, or row house. (includes the initial inspection
and one reinspection )
$75.00
15.36.050 subsection C. New license or renewal license for renting an apartment complex
(includes the initial inspection and one reinspection )
$150.00 per building plus
$30.00 per dwelling unit
15.36.050 subsection C. The fee for any reinspection after the first reinspection $50.00
15.36.060 subsection F.
The fee for any reinspection after the first reinspection (except that a
single reinspection shall be conducted at the end of the conditional
license term without any fee for the purpose of determining
compliance)
$50.00
16.20.020 subsection D. Concept plan filing fee
$150.00 plus $25.00 for
each acre or fraction
thereof in excess of 5 acres,
not to exceed $1,000.00
dollars
16.20.020 subsection H. Public Hearing fee and an Engineering Review fee for a public hearing
with the Planning & Zoning Commission
1.0% of the total estimated
cost of construction of all
improvements required
pursuant to Title 16.
16.20.080 subsection D.1. Plat filing application fee for a developer
3.5% of the total estimated
cost of all improvements,
both public and private,
governed by Title 16, less
the amount of the
engineering review fee, paid
pursuant to Section
16.20.020
16.20.105 subsection C. Filing fee for an administrative subdivision $100.00
16.20.105 subsection D. Initial payment and recoverable cost escrow for an administrative
subdivision $500.00
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17.36.020 subsection A.2. Permit fee for any construction, reconstruction, re-striping or expansion
or modification of a parking lot
$50.00 plus an engineering
and reviewing fee of 3.5% of
the first $10,000 of the
construction cost estimate
plus 1.0% of the remaining
construction cost estimate
19.01.030 subsection C. Subdivider or developer cash contribution for library services (per
person in the subdivision or development) $93.85
19.01.040 subsection B. Fair market value of improved land in the Village for purposes of
determining cash contributions in lieu of land (per acre) $175,000.00
319
Appendix B
Financial Policies and Projections
Fund Policy
Purchasing Policy
Investment Policy
Debt Policy
Fixed Asset and Capital Equipment Capitalization Policy
Five-Year Operating Forecast
Twenty-Year Water and Sewer Utility Forecast
Stormwater Fund 20 Year Pro Forma
Village of Buffalo Grove
Fund Balance and Reserve Policy
321
Fund Balance and Reserve Policy
Definitions
Fund Balance – the difference between assets and liabilities in a Governmental Fund.
Nonspendable Fund Balance – the portion of a Governmental Fund’s net assets that are not available to be spent ,
either short tern or long term, in either form or through legal restrictions.
Restricted Fund Balance – the portion of a Government Fund’s net assets that are subject to external enforceable
legal restrictions.
Committed Fund Balance – the portion of a Governmental Fund’s net assets with self-imposed constraints or
limitations that have been placed by formal action at the highest level of decision-making.
Assigned Fund Balance – the portion of a Governmental Fund’s net assets to denote an intended use of resources.
Unassigned Fund Balance – available expendable financial resources in a Governmental Fund that are not the
object of tentative management plan (i.e. designations). (Only in the General Fund, unless negative)
Note: In Non-Governmental Funds, management may decide to “assign” funds for a specific purpose. This will be
done as an internal budgeting procedure rather than as a formal accounting entry, creating a fund automatically
assigns fund balance.
Fund Policy
A. It is the policy of the Village of Buffalo Grove to maintain Committed Fund Balance in the General Fund to
fund operations for a period of at least three months. The committed amount in the General Fund is
adjusted annually with the adoption of the annual budget and is calculated as three months (25 percent)
of General Fund expenditures (excluding transfers to fund capital projects and pensions). During the
development of the subsequent year’s annual budget, should the Committed Fund Balance be expected
to fall below the 25 percent target notification will be given to the Village’s Finance Committee. While
identified uses of Fund Balance may be proposed that could continue the trend below 25%, such uses will
be disclosed and approved by the Committee.
B. The annual budget (appropriation) will include a contribution to (or drawdown from) the Committed Fund
Balance to assure compliance with this policy. The levels of other required restrictions, commitments,
and assignments will fluctuate depending on activity.
C. Unassigned Fund Balance shall be reviewed annually and, where appropriate, a determination will be
made as to how much of the unassigned fund balance will be transferred to the Reserves for Capital
Replacement. Although the policy minimum is 25 percent for Committed Fund Balance, 30 percent is
considered the preferred balance and any unassigned balances exceeding 30 percent will be considered
for transfer.
D. This policy may be amended from time to time according to the requests of the Village of Buffalo Grove
President and Board of Trustees.
E. The Village will spend the most restricted dollars before less restricted, in the following order;
a. Nonspendable Fund Balance (if funds become spendable)
b. Restricted Fund Balance
c. Committed Fund Balance
d. Assigned Fund Balance
e. Unassigned Fund Balance
F. The Finance Director will determine if a portion of fund balance should be assigned.
322
Village of Buffalo Grove
Purchasing Policy Overview
323
Purchasing Policy Overview
*Revised by Resolution 2015-24 on August 3, 2015. Full policy available on the website.
The procurement policy is intended for use as a guide to the Village of Buffalo Grove procurement methods. When
used properly, the policies will enable the Village to obtain needed materials, equipment, supplies, and services
efficiently and economically.
The basic goals of the Village’s procurement program are:
1. To comply with the legal requirements of public procurement and purchasing.
2. To assure vendors that impartial and equal treatment is afforded to all who wish to do business with the
Village.
3. To receive maximum value for each dollar spent by awarding purchase orders to the lowest responsible
bidder, taking into consideration quality, performance, technical support, delivery schedule, past
performance and other relevant factors.
4. To provide Village departments the required goods, equipment and services at the time and place needed
and in the proper quantity and quality.
5. To promote environmentally safe products and services while taking into consideration factors such as
price, performance, availability and safety.
6. To promote good and effective vendor relations, cultivated by informed and fair buying practices and
strict maintenance of ethical standards.
The purpose of this purchasing policy is to provide the Village of Buffalo Grove staff with guidelines and directions
for the acquisition of goods and services. This policy is designed to be a fluid document and will be modified from
time to time to conform to changes in legislation, technology, and actual practice.
The Village Manager, or his/her designee, shall be the final authority with regards to enforcement of any of the
provisions of this policy. Failure to follow the procedures outlined in this policy may lead to disciplinary action in
accordance with the provisions of the Village of Buffalo Grove Personnel Manual.
This policy is not intended to provide third parties with any specific rights when transacting with the Village of
Buffalo Grove. All policies and procedures in this Policy are subject to modification by the appropriate Village
employees and, therefore, vendors or other third parties shall not be entitled to rely on the contents of this policy.
Amount Of Purchase Procurement Method Notification Approval
Purchases of $100.00 or less Petty Cash Procedures
Credit Card
Supervisor or
Designee
Supervisor or
Designee
$100.01 to $250.00 Purchases
Request for Payment Method
Or Invoice submitted
Purchase Order Procedure
Department
Supervisor or
Designee
Department
Supervisor or
Designee
$250.01 to $1,499.99 Purchases
Quotes (verbal, fax, email, written)
3 Quotes Recommended
Purchase Order Procedure
Department
Supervisor or
Designee
Purchasing
Manager
$1,500.00 to $3,499.99
Purchases
Quotes (written, faxed or email)
3 Quotes Required
Purchase Order Procedure
Purchasing
Manager
Finance Director,
Purchasing
Director
$3,500.00 to $20,000.00
Purchases
Contact the Purchasing Manager
Quotes (written, faxed or email)
3 Quotes or State Contract/GSA
Purchase Order Procedures
Department
Director or
Designee
Village Manager
or Designee
Purchase Exceeds $20,000.00
Contact the Purchasing Manager
Formal Procurement Process
Award by Village Board
Village Manager
or Designee Village Board
32
Village Manager Authority and Responsibilities
1. Purchase all materials, supplies, equipment, personal services, and contracts for which funds are provided
in the budget, but no item or personal service which exceeds any budget appropriation may be
purchased.
2. For a purchase of more than twenty thousand dollars, with the exception of professional services, the
Village Manager should solicit bids and such bids shall be presented to the Corporate Authorities for
approval or rejection.
3. The Village Manager shall solicit bids for any public improvement, which will exceed twenty thousand
dollars, which is not to be paid for in whole or in part by a special assessment or special tax.
4. The Village Manager will make recommendations to the Corporate Authorities with respect to all bids.
5. The Village Manager may issue rules and regulations governing requisitions and the transaction of the
business of the purchasing agent and the heads of departments, officers, and employees of the Village.
6. In case of circumstances creating an emergency, the Village Manager may, without prior consent of the
Corporate Authorities, award contracts and make purchases for the purpose of meeting the emergency.
In such cases the Village Manager will notify the Corporate Authorities as soon as is practicable of all
emergency procurements that exceed $20,000
Petty Cash
Purpose: To reimburse an employee for small incidental purchases.
Appropriate use of the Petty Cash: Petty cash funds may be used for small incidental nonrecurring cash purchases
that do not exceed $100. The use of petty cash should not be considered as a substitute for regular procurement
procedures.
Requests for reimbursement using petty cash must be accompanied by the Petty Cash Form. These forms must be
completed and then submitted to the Accounts Payable Clerk.
Advance Check Request
Purpose: To request a check for payment when an invoice is not issued.
Appropriate use of Advance Check Request for Payment: Occasionally, a check is needed when there is no
invoice. These occurrences include, but are not limited to:
• An employee request for reimbursement for out of pocket expense.
• Vendors requiring payment in advance.
• Mail in catalog orders requiring pre-payment.
When the Advance Check Request form is used, a cash receipt, a written quote, or a copy of the catalog order
must be submitted as supporting documentation.
Purchase Orders
Purpose: To provide a legal document that places an obligation on both the Village and the vendor. When
properly endorsed by the Finance Department, the purchase order obligates the Village to purchase the items
listed at the prices stated. The vendor is obligated according to the terms and prices stated on the purchase order
to deliver the goods or services. The purchase order provides specifications for goods and services ordered and
shipping and billing information.
Appropriate Use of the Purchase Order: A purchase order shall be used for procurement of any item or service
that requires a written order or any purchase of $50.01 or more. Purchase orders are not required for prepaid
orders.
32
Blanket Purchase Orders
Purpose: Blanket purchase orders will be used for repetitive purchases from certain vendors.
Appropriate Use of the Blanket Purchase Order: If the Village has entered into contract with a Vendor then a
Blanket purchase may be issued for each fiscal year of that contract. Departments should follow standard
purchase order procedures. For repetitive purchases, rather than issuing a purchase order for each purchase, one
purchase order with a dollar limit is issued for a period of up to three months.
Procurement Card Program
A policy has been designed to establish the procedures to be used with the Village of Buffalo Grove’s procurement
card program.
326
Village of Buffalo
Investment Policy
327
I. Policy:
The Village of Buffalo Grove, as a public agency, has an inherent fiduciary responsibility to properly account for and
manage public funds. Public funds are to be considered current operating funds, special funds, debt service and
other funds of any kind or character belonging to or in the custody of any public agency (Chapter 30, paragraph
235/1 through 235/7, Public Funds Investment Act, Illinois Complied Statutes
II. Scope:
This investment policy applies to all financial assets of the Village of Buffalo Grove except for the Police and
Firefighter’s Pension Funds which are subject to those individual fund boards.
1. Pooling of Funds
Except for cash in certain restricted and special funds, the Village of Buffalo Grove will consolidate and reserve
balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment
pricing, safekeeping and administration. Investment income will be allocated to the various funds based on
their respective participation and in accordance with generally accepted accounting principles.
III. General Objectives:
The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:
1. Safety
Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a
manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate
credit risk and interest rate risk
(a). Credit Risk
The Village of Buffalo Grove will minimize credit risk, which is the risk of loss due to the failure of the
security issuer or backer, by:
• Limiting investment to the types of securities listed in Section VII of this Investment Policy.
• Pre-qualifying the financial institutions, broker/dealers, intermediaries, and adviser with
which the Village of Buffalo Grove will do business in accordance with Section V.
• Diversifying the investment portfolio so that the impact of potential losses from any one
type of security or from any one individual issuer will be minimized.
(b). Interest Rate Risk
The Village of Buffalo Grove will minimize interest rate risk, which is the risk that the marker values of
securities in the portfolio will fall due to changes in market interest rates, by:
• Structuring the investment portfolio so that securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to
maturity
• Investing operating funds primarily in shorter-term securities, money market mutual funds,
or similar investment pools and limiting the average maturity of the portfolio in accordance
with this policy (see section VIII).
2. Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be
reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent
with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands
cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets
(dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or
local government investment pools which offer same day liquidity for short-term funds.
3. Yield
The investment portfolio shall be designed with the objective of attaining a market rate of return throughout
budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return
on investment is of secondary importance compared to the safety and liquidity objectives described above. The
core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to
the risk being assumed. Securities shall generally be held until maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal.
• A security swap would improve the quality, yield, or target duration in the portfolio.
• Liquidity needs of the portfolio require that the security be sold.
IV. Standards of Care:
1. Prudence
The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall
be applied in the context of managing the overall portfolio. Investment officers acting in accordance with
written procedures and this investment policy and exercising due diligence shall be relieved of personal
responsibility for an individual security’s credit risk or market price changes, provided deviations from
expectations are reported in a timely fashion and the liquidity and the sale of securities are carried out in
accordance with the terms of this policy.
2. Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that
could conflict with the proper execution and management of the investment program, or that could impair
their ability to make impartial decisions. Employees and investment officials shall disclose any material interests
in financial institutions with which they conduct business. They shall further disclose any personal
financial/investment positions that could be related to the performance of the investment portfolio. Employees
and officers shall refrain from undertaking personal investment transactions with the same individual with
whom business is conducted on behalf of the Village of Buffalo Grove.
3. Delegation of Authority
Authority to mange the Village of Buffalo Grove’s investment program is derived from the following:
The establishment of investment policies is the responsibility of the Village Board. Management and
administrative responsibility for the investment program is hereby delegated to the Finance Director who,
under the direction of the Village Manager, shall establish written procedures for the operation of the
investment program consistent with this investment policy. Procedures should include references to:
safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements,
collateral/depository agreements and banking service contracts. Such procedures shall include explicit
delegation of authority to persons responsible for investment transactions. No person may engage in an
investment transaction except as provided under the terms of this policy and the procedures established by the
Finance Director. The Finance Director shall be responsible for all transactions undertaken and shall establish a
system of controls to regulate the activities of subordinate officials. The Finance Director may from time to time
amend the written procedures in a manner not inconsistent with this policy or state statutes.
The responsibility for investment activities of the Police and Firefighter Pension Funds rest with the trustees of
the respective fund boards.
V. Authorized Financial Institutions, Depositories and Broker/Dealers:
The Finance Director will maintain a list of financial institutions authorized to provide investment services. In
addition, a list will be maintained of approved security broker/dealers selected by credit worthiness. These may
include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule
15C3-1 (uniform net capital rule). No public deposit shall be made except at a qualified public depository as
established by state statutes.
All financial institutions and broker/dealers who desire to become qualified become qualified bidders for
investment transactions must supply the Finance Director with the following:
• Audited financial statements demonstrating compliance with state and federal capacity adequacy
guidelines
• Proof of National Association of Security Dealers (NASD) certification (not applicable to Certificate of
Deposit counterparties)
• Proof of state registration
• Completed broker/dealer questionnaire
• Certification of having read the Village’s Investment Policy
VI. Safekeeping and Custody:
All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are
deposited in an eligible financial institution prior to the release of funds.
Securities will be held by an independent third-party custodian selected by the Village as evidenced by safekeeping
receipts in the Village’s name. The safekeeping institution shall annually provide a copy of their most recent report
on internal controls (Statement of Auditing Standard No. 70, or SAS 70).
1. Internal Controls
The Finance Director is responsible for establishing and maintaining an internal control structure designed to
ensure that the assets of the Village of Buffalo Grove are protected from loss, theft or misuse. Details of the
internal controls system shall be documented in an investment procedures manual and shall be reviewed and
updated annually. The internal control structure shall be designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not
exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and
judgments by management.
The internal controls structure shall address the following points:
• Control of collusion
• Separation of transaction authority from accounting and recordkeeping
• Custodial safekeeping
• Avoidance of physical delivery securities
• Clear delegation of authority to subordinate staff members
• Written confirmation of transactions for investments and wire transfers
• Dual authorizations of wire transfers
• Development of a wire transfer agreement with the lead bank and third-party custodian
Accordingly, the Finance Director shall establish a process for annual independent review by an external auditor
to assure compliance with policies and procedures.
VII. Suitable and Authorized Investments:
The Village may invest in any type of the security allowed for in Illinois Compile Statutes (30 ILCS 235/2) regarding
the investment of public funds. Approved investments include:
• Bonds, notes, certificates of indebtedness, treasury bill, or any other securities now or hereafter issued,
which are guaranteed by the full faith and credit of the United States of American as to principal and
interest;
• Bonds, notes, debentures or other similar obligations of the United States of America or its agencies;
• Interest-bearing savings accounts, interest-bearing certificates of deposit or interest-bearing time
deposits or any other investments constituting direct obligations of any bank as defined by the Illinois
Banking Act; and is insured by the Federal Deposit Insurance Corporation;
• Short-term obligations of corporations organized in the United States with assets exceeding $500,000,000
if (i) such obligations are rated at the time of purchase at one of the three highest classifications
established by at least two standard rating services and which mature not later than 180 days for the date
of purchase, (ii) such purchases do not exceed 10% of the corporation’s outstanding obligations and (iii)
no more than 25% of the Village’s funds may be investing in short-term obligations of corporations;
• Illinois Public Treasurer’s Investment Pool (Illinois Funds), and the Illinois Metropolitan Investment Fund
(IMET)
• Short-term discount obligations of the Federal National Mortgage Association (FNMA) or I shares of other
forms of securities or other allowable investments legally issued by savings and loan associations
incorporated under the laws of this state or any other state or under the laws of the United States.
Investments may be made only in those savings and loan associations of which the shares or investment
certificates are insured by the Federal Deposit Insurance Corporation (FDIC).
• Investment options suitable under ILCS including Fixed Rate General Obligation Municipal Bonds whose
credit quality is restrict to “AA” or better.
1. Collateralization:
It is the policy of the Village of Buffalo Grove and in accordance with the GFOA’s Recommended Practices on
the Collateralization of Public Deposits (attachment #2), the Village requires that funds on deposit in excess of
FDIC limits be secured with some form of collateral, including surety bonds or letters of credit. The Village will
accept any of the following assists as collateral:
• Government Securities
• Obligations of Federal Agencies
• Obligations of Federal Instrumentalities
• Fixed Rate General Obligation Municipal Bonds rated “AA” or better
• Obligations of the State of Illinois
(The Village reserves the right to accept/reject any form of the above named securities.)
The amount of collateral provided will not be less than 103% of the fair market value of the net amount of
public funds secured. The ratio of fair market value of collateral to the amount of funds secured will be
reviewed monthly, and additional collateral will be required when the ratio declines below the level required
and collateral will be released if the fair market value exceeds the required level. Pledged collateral will be held
in safekeeping by an independent third party depository designated by the Village of Buffalo Grove and
evidenced by a safekeeping agreement. Collateral agreements will preclude the release of the pledged assets
without an authorized signature from the Village of Buffalo Grove. The Village realizes that there is a cost factor
involved with collateralization and the Village will pay any reasonable and customary fees related to
collateralization.
VIII. Investment Parameters:
1. Diversification
In order to reduce the risk of default, the investment portfolio of the Village of Buffalo Grove shall be
diversified by:
• Limiting investments to avoid over-concentration in securities from a specific issuer or business sector
(U.S. Treasury and Agency securities),
- Monies deposited at a financial institution shall not exceed 75% of the capital stock and
surplus of that institution.
- Commercial paper shall not exceed 33% of the Village’s investment portfolio.
- Brokered certificates of deposit shall not exceed 25% of the Village’s investment portfolio.
• Investing in securities with varying maturities, and
• Continuously investing a portion of the portfolio in readily available funds such as local government
investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that
appropriate liquidity is maintained in order to meet ongoing obligations.
2. Maximum Maturities
To the extent possible, the Village of Buffalo Grove will attempt to match its investments with anticipated cash
flow requirements. Unless matched to a specific cash flow, the Village will not directly invest in securities
maturing more than three years from the date of purchase.
Reserve funds and other funds with longer-term investment horizons may be invested in securities exceeding
three year if the maturities of such investments are made to coincide as nearly as practicable with the expected
use of funds.
Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio
should be continuously invested in readily available funds such as LGIPs, money market funds, or overnight
repurchase agreements to ensure that appropriate liquidity is maintained to meet ongoing obligations.
IX. Reporting:
The Finance Director shall prepare as investment report at least quarterly, including a management summary that
provides an analysis of the status of the current investment portfolio. This management summary will be prepared
in a manner which will allow the Village to ascertain whether investment activities during the reporting period
have conformed to the investment policy. This report should be provided to the Village Manager and Village
Board. The report will include the following:
• Listing of individual securities held, by fund, at the end of the reporting period.
• Average weighted yield to maturity of portfolio.
• Listing of investments by maturity date.
• Percentage of total portfolio which each type of investment represents.
1. Performance Standards
The investment portfolio will be managed in accordance with the parameters specified within this policy. The
portfolio should obtain a market average rate of return during a market/economic environment of stable
interest rates. Portfolio performance should be compared to appropriate benchmarks on a regular basis. The
benchmarks shall be reflective of the actual securities being purchased and risks undertaken, and the
benchmark shall have similar weighted average as the portfolio.
2. Market Yield
The Village’s investment strategy is passive. Given this strategy, the basis used by the Finance Director to
determine whether market yield are being achieved shall be the six-month U.S. Treasury Bill.
3. Marking to Market
The market value of the portfolio shall be calculated at least quarterly and a statement of the market value of
the portfolio shall be issued at least quarterly. This will ensure that review of the investment portfolio, in terms
of value and price volatility, has been performed consistent with the GFOA recommended Practices on “Mark-
to-Market Practices for State and Local Government Investment Portfolios and Investment Pools” (attachment
#3). In defining market value, considerations should be given to the GASB Statement 31 pronouncement.
X. Investment Policy Adoption:
The Village of Buffalo Grove’s investment policy shall be adopted by resolution of the Village Board of Trustees.
This policy shall be reviewed on an annual basis by the Finance Director and any modifications thereto must be
approved by the Village Board of Trustees.
XI. Glossary:
AGENCIES: Informal name that refers to securities issued by the United States government and U.S. government
sponsored instrumentalities.
ASKED: The trading price proposed by the prospective seller of securities. Also called the offer or offered price.
BANKERS' ACCEPTANCE (BA): A short-term financial instrument that is the unconditional obligation of the
accepting bank.
BASIS POINT (BP): A unit of measurement for interest rates or yields that are expressed in percentages. (One
hundred basis points equal 1 percent.)
BID: The trading price acceptable to a prospective buyer of securities.
BOND EQUIVALENT YIELD (BEY): An annual yield, expressed as a percentage, describing the return provided to
bond holders. The BEY is a way to compare yields available from discount securities such as Treasury bills and BAs
with yields available from coupon securities.
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BROKER: A party who brings buyers and sellers together. Brokers do not take ownership of the property being
traded. They are compensated by commissions. They are not the same as dealers; however, the same individuals
and firms that act as brokers in some transactions may act as dealers in other transactions.
BROKERED AND NEGOTIABLE CERTIFICATES OF DEPOSIT: Short-term (2 to 52 weeks) large denomination
($100,000 minimum). Certificate of Deposit that is issued at a discount on its par value, or at a fixed interest rate
payable at maturity and are freely traded in secondary markets.
CERTIFICATE OF DEPOSIT (CD): A deposit of funds, in a bank or savings and loan association, for a specific term
that earns interest at a specified rate or rate formula. CDs may be secured or unsecured, may be in negotiable or
nonnegotiable form and may be issued in either physical or book entry form.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a
loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COMMERCIAL PAPER (CP): Unsecured, short-term promissory notes issued by corporations for specific amounts
and with specific maturity dates.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the Village of Glenview. It
includes five combined statements and basic financial statements for each individual fund and account group
prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance
with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical
Section.
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face
value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A firm or individual who buys and sells for their own account. Dealers have ownership between a
purchase from one party and a sale to another party. Dealers are compensated by the spread between the price
they pay and the price they receive.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT (DVP): The simultaneous exchange of securities and cash. The safest method of
settling either the purchase or sale of a security. In a DVP settlement, the funds are wired from the buyer's account
and the security is delivered from the seller's account in simultaneous independent wires.
DISCOUNT: The amount by which the price for a security is less than its par.
DISCOUNT SECURITIES: Securities that do not pay periodic interest. Investors earn the difference between the
discount issue price and the full face value paid at maturity. Treasury bills, bankers’ acceptances and zero coupon
bonds are discount securities.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various classes of
institutions and individuals, e.g., S & L's, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT OF INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up
to $100,000 per deposit.
FEDERAL FUNDS RATE: The rate for which overnight federal funds are traded.
FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The
Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member
commercial banks.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or FANNIE MAE): FNMA is a federal corporation working
under the auspices of the Department of Housing & Urban Development, HUD. It is the largest single provider of
residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-
owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in
addition to fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely
payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five
of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a
permanent member while the other Presidents serve on a rotation basis. The Committee periodically meets to set
Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means
of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven
member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are
members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE): GNMA, like FNMA, was chartered
under the Federal National Mortgage Association Act of 1938. Securities guaranteed by GNMA and issued by
mortgage bankers, commercial banks, savings and loan associations and other institutions. Security holder is
protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM
mortgages. The term pass-throughs is often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be readily converted to cash through sale in an active secondary market.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): Pools through which governmental entities may invest short
term cash. Examples of LGIP's are the Illinois Funds, administered by the Illinois State Treasurer and the Illinois
Metropolitan Investment Fund.
MARKET VALUE: The price at which a security could presumably be purchased or sold.
MARK TO MARKET: The process of restating the carrying value of an asset or liability to equal its current market
value.
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MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between parties. The
agreement establishes each party’s right in the transaction. Repurchase Agreements (REPO’s) are a form of short-
term borrowing for dealers in government securities. The dealer sells the government securities to investors,
usually on an overnight basis, and then buys them back the following day. For the party selling the security (and
agreeing to repurchase it in the future), it is a repo; for the party on the other end of the transaction (buying the
security and agreeing to sell in the future), it is a reverse repurchase agreement. A master agreement will often
specify, among other things, the right to liquidate the underlying securities in the event of default.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET: The aggregation of buyers and sellers actively trading money market instruments.
OFFER OF OFFERED PRICE: The trading price proposed by the prospective seller of securities (also called the asked
or asking price).
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market
by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and
credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit;
sales have the opposite effect. Open market operations are the Federal Reserve's most important and most
flexible monetary policy tool.
PORTFOLIO: Collection of financial assets belonging to a single owner.
PREMIUM: The amount by which the price for a security is greater than its par amount.
PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and
positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal
oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers,
banks, and a few unrelated firms.
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a
trustee, may invest money only in a list of securities selected by the state - the so-called legal list. In other states
the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and
intelligence who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of
any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the
benefit of the commission eligible collateral having a value of not less than its maximum liability and which has
been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This
may be the amortized yield to maturity on a bond or the current income return.
REINVESTMENT RISK: The risk that all or part of the principal may be received when interest rates are lower than
when the security was originally purchased, so that the principal must be reinvested at a lower rate than the rate
originally received by the investor.
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REPURCHASE AGREEMENT (RP OR REPO): See Master Repurchase Agreement.
SAFEKEEPING: A service rendered by banks whereby securities and valuables of all types and descriptions are held
by the bank.
SEC RULE 15C3-1: See uniform net capital rule.
SECONDARY MARKET: Markets for the purchase and sale of any previously issued financial instrument.
SECURITIES & EXCHANGE COMMISSION (SEC): The federal agency with responsibility for regulating financial
exchanges for cash instruments.
SPREAD OVER TREASURIES: The difference between the bond equivalent yield for any investment and the bond
equivalent yield for a Treasury investment with the same maturity.
TREASURY BILLS (T-BILLS): Short-term obligations issued by the U.S. Treasury for maturities of one year or less.
They do not pay interest but are issued on a discount basis instead.
TREASURY BONDS (T-BONDS): Long-term obligations issued by the U.S. Treasury with initial maturities of more
than ten years.
TREASURY NOTES (T-NOTES): Medium-term obligations issued by the U.S. Treasury with initial maturities of from
one to ten years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as
non-member broker dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1;
also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm including margin
loans and commitments to purchase securities, one reason new public issues are spread among members of
underwriting syndicate. Liquid capital includes cash and assets easily converted to cash.
YIELD: Loosely refers to the annual return on an investment expressed as a percentage on an annual basis. For
interest-bearing securities, the yield is a function of the rate, the purchase price, the income that can be earned
from the reinvestment of income received prior to maturity, call or sale. Different formulas or methods are used to
calculate yields.
Adopted April 18, 2016
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Village of Buffalo Grove
Debt Policy
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I. PURPOSE AND GOALS
The Debt Policy sets forth comprehensive guidelines for the financing of capital expenditures. It is the objective of
the policies that (1) the Village obtain financing only when necessary, (2) the process for identifying the timing and
amount of debt or other financing be as efficient as possible, (3) the most favorable interest rate and other related
costs be obtained, and (4) when appropriate, future financial flexibility be maintained.
Debt financing, which includes general obligation bonds, special assessment bonds, revenue bonds, temporary
notes, lease/purchase agreements, lines of credit, and other Village obligations permitted to be issued or incurred
under Illinois law, shall only be used to purchase capital assets that cannot be acquired from either available
current revenues or fund balances. The useful life of the asset or project shall exceed the payout schedule of any
debt the Village assumes.
To enhance creditworthiness and prudent financial management, the Village is committed to systematic capital
planning and long-term financial planning. Evidence of this commitment to capital planning will be demonstrated
through the annual adoption of a Capital Improvement Plan (CIP) identifying the benefits, costs and method of
funding each capital improvement planned for the succeeding five years.
GOALS
In following this policy, the Village shall pursue the following goals when issuing debt:
• Long-term debt will not be used to finance current operations or to capitalize operating expenses. The
capitalization of expenses, which represents a shift of operating costs into long-term debt, should be a
practice that is expressly prohibited. Long-term debt will be used only for capital projects that cannot be
financed from current revenue sources. Where capital improvements or acquisitions are financed through the
issuance of debt, such debt will be retired in a period not to exceed the expected life of the improvement or
acquisition.
• Assess financial alternatives to include new and innovative financing approaches as well as seeking categorical
grants, revolving loans or other state/federal aid
• The Village will also issue long-term debt for refunding of other outstanding debt for the purpose of interest
rate savings. As a guide, the minimum net present value savings shall be three percent (3%) of the par value
of the proposed new bonds to be issued. However, circumstances may occur where a refunding may be
advantageous with net present value savings of less than 3%. In those cases, approval of the President and
Board of Trustees will be required in order to proceed.
• Determine the amortization (maturity) schedule which will best fit with the overall debt structure of the
Village’s general obligation debt and related tax levy at the time the new debt is issued. The Village may
choose to delay principal payments or capitalize interest during the project construction. For issuance of
revenue bonds, the amortization schedule which will best fit with the overall debt structure of the enterprise
fund and its related rate structure will be considered. Consideration will be given to coordinating the length of
the issue with the lives of assets, whenever practicable, while considering repair and replacement costs of
those assets to be incurred in future years as an offset to the useful lives, and the related length of time in the
payout structure.
• Level or declining debt service shall be employed unless operational matters dictate otherwise, or except to
achieve overall level debt service with existing bonds. The Village shall be mindful of the potential benefits of
bank qualification and will strive to limit its annual issuance of debt to $10 million or less when such estimated
benefits are greater than the benefits of exceeding the bank qualification limit. Should subsequent changes in
the law raise this limit, then the Village policy will be adjusted accordingly.
• The cost of taxable debt is higher than for tax-exempt debt. However, the issuance of taxable debt is
mandated in some circumstances and may allow valuable flexibility in subsequent contracts with users or
managers of the improvement constructed with the bond proceeds. Therefore, the Village will usually issue
obligations tax exempt, but may occasionally issue taxable obligations.
II. DEBT ISSUANCE IN GENERAL
A. Authority and Purposes of the Issuance of Debt
The laws of the State of Illinois authorize the issuance of debt by the Village. The Local Bond Law
confers upon municipalities the power and authority to contract debt, borrow money, and issue bonds
for public improvement projects as defined therein. Under these provisions, the Village may contract
debt to pay for the cost of acquiring, constructing, reconstruction, improving, extending, enlarging, and
equipping such projects or to refund bonds. The Village Charter authorizes the Village Board to incur
debt by issuing bonds for any lawful municipal purpose as authorized by the State Constitution or it
Home Rule Powers.
B. Types of Debt Issued
i) Short-Term (three years or less) The Village may issue short-term debt to finance the purchase of
capital equipment having a life exceeding one year or provide increased flexibility in financing
programs.
ii) Long-Term (more than three years) The Village may issue long-term debt which may include, but not
limited to, general obligation bonds, certificates of participation, capital appreciation bonds, tax
increment allocation revenue bonds, special assessment bonds, special service area bonds, self-
liquidation bonds and double barreled bonds. The Village may also enter into long-term leases for
public facilities, property, and equipment with a useful life greater than one year.
C. Capital Improvement Program
The Capital Improvement Plan (CIP) as approved by the Village Board shall determine the Village’s
capital needs. The program shall be a five-year plan for the acquisition, development and/or
improvement of the Village’s infrastructure. The first year of the program shall be the Capital Budget. If
the current resources are insufficient to meet the needs identified in the Capital Budget, the Village Board
may consider incurring debt to fund the shortfall. The Village Board, upon advice from the Village’s
financial advisor, may also consider funding multiple years of the Capital Improvement Program by
incurring debt. The CIP should be revised and supplemented each year in keeping with the Village’s policies
on debt management.
D. Structure of Debt Issues
The duration of a debt issue shall not exceed the economic or useful life of the improvement or asset
that the issue is financing. The Village shall design the financing schedule and repayment of the debt so as
to take best advantage of market conditions and, as practical, to recapture or maximize its credit capacity
for future use, and moderate the impact to the taxpayer.
E. Sale of Securities
All debt issues should be sold through a competitive bidding process based upon the lowest offered
True Interest Cost (TIC), unless the Board deems a negotiated sale the most advantageous to the Village.
F. Credit Enhancements
The Village may enter into agreements with commercial banks or other financial entities for the
purpose of acquiring letters of credit, municipal bond insurance, or other credit enhancements that will
provide the Village with access to credit under terms and as specified in such agreements when their use is
judged cost effective or otherwise advantageous. Any such agreements shall be approved by the Village
Board.
III. LEGAL CONSTRAINTS AND OTHER LIMITATIONS ON THE ISSUANCE OF DEBT
The Village Board may utilize the guidelines established by this policy, or may choose, in its discretion, to
consider other relevant factors in incurring debt. The validity of any debt incurred in accordance with appli-
cable law shall not be invalidated, impaired or otherwise affected by non-compliance with any part of the
procedure set forth pursuant to this policy.
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A. State Law
30 ILCS 305/0.01, et. Seq.: the short title is “The Bond Authorization Act.”
B. Authority for Debt
The Village may, by bond ordinance, incur indebtedness or borrow money, and authorize the issue of
negotiable obligations, including refunding bonds, for any capital improvement of property, land acquisition,
or any lawful purpose except current expenses, unless approved by the Village Board.
C. Debt Limitation
Because the Village of Buffalo Grove is a Home Rule Community, the debt limitations of the bond laws
are not applicable.
D. Methods of Sale
All bonds shall be sold at a public sale, except that bonds may be sold at a private sale in
accordance with 30 ILCS 350/10. The Village may issue short-term notes by negotiated sale if the
bond ordinance or subsequent resolution so provides.
i) Bonds All bonds will mature within the period or average period of usefulness of the assets financed;
and the bonds will mature in installments, the first of which is payable not more than five years from
the dated date of the bonds. Term bonds may be allowable if recommended by the Village’s financial
advisor and approved by the Village Board.
ii) Financial Advisor To ensure independence, the Financial Advisor will not bid on nor underwrite any
Village debt issues on which it is advising.
IV. DEBT ADMINISTRATION
A. Financial Disclosures
The Village shall prepare appropriate disclosures as required by the Security and Exchange
Commission, the federal government, the State of Illinois, rating agencies, underwriters, investors, agencies,
taxpayers, and other appropriate entities and persons to ensure compliance with applicable laws and
regulations.
B. Review of Financing Proposals
All capital financing proposals that involve a pledge of the Village’s credit through the sale of securities,
execution of loans or lease agreements and/or otherwise directly involve the lending or pledging of the Villag-
e’s credit shall be referred to the Director of Finance/Treasurer who shall determine the financial feasibility,
and the impact on existing debt of such proposal, and shall make recommendations accordingly to the Village
Manager.
C. Establishing Financing Priorities
The Director of Finance/Treasurer shall administer and coordinate the Village’s debt issuance program
and activities, including timing of issuance, method of sale, structuring the issue, and marketing
strategies. The Director of Finance/Treasurer along with the Village’s financial advisor shall meet, as
appropriate, with the Village Manager and Village Board regarding the status of the current year’s
program and to make specific recommendations.
D. Rating Agency Relations
The Village shall endeavor to maintain effective relations with the rating agencies. The Village Manager,
Director of Finance/Treasurer, and the Village’s financial advisors should meet with, make presentations to,
or otherwise communicate with the ratings agencies on a consistence and regular basis in order to keep
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the agencies informed concerning the Village’s capital plan, debt issuance program, and other
appropriate financial information.
E. Refunding Policy
The Village should consider refunding outstanding debt when legally permissible and financially
advantageous. A net present value debt service savings of at least three percent or greater should be
achieved.
F. Post-Issuance Compliance
The Finance Director/Treasurer shall be responsible for following post-issuance compliance for all debt
issues. The procedures are noted in the Post-Issuance Procedures Manual for Tax-Exempt Bonds Issued by
The Village of Buffalo Grove.
V. GLOSSARY OF TERMS
Ad Valorem Tax – A direct tax based “according to value” of property.
Advanced Refunding Bonds – Bonds issued to refund an outstanding bond issue prior to the date which the
outstanding bonds become due or callable. Proceeds of the advanced refunding bonds are deposited in
escrow with a fiduciary, invested in United States Treasury Bonds or other authorized securities, and used to
redeem the underlying bonds at maturity or call date.
Amortization – the process of paying the principal amount of an issue of bonds by periodic payments either
directly to bondholders or to a sinking fund for the benefit of bondholders.
Arbitrage – Usually refers to the difference between the interest paid on the tax-exempt securities and the
interest earned by investing the proceeds in higher yielding taxable securities. Internal Revenue Service
regulations govern arbitrage (references I.R.S. Reg. 1.103-13 through 1.103-15).
Arbitrage Bonds – Bonds which are deemed by the I.R.S. to violate federal arbitrage regulations. The interest
on such bonds becomes taxable and the bondholders must include this interest as part of gross income for
federal income tax purposes (I.R.S. Reg. 1.103-13 through 1.103-15).
Assessed Value – An annual determination of the just or fair market value of property for purposes of ad
valorem taxation.
Basis Point – 1/100 of one percent.
Bond – Written evidence of the issuer’s obligation to repay a specified principal amount on a date certain,
together with interest at a stated rate, or according to a formula for determining that rate.
Bond Anticipation Notes (BANS) – Short-term interest bearing notes issued by a government in anticipation of
bonds to be issued at a later date. The notes are retired from proceeds of the bond issue to which they are
related.
Bond Counsel – An attorney retained by the Village to render a legal opinion whether the Village is authorized
to issue the proposed bonds, has met all legal requirements necessary for issuance, and whether interest on
the bonds is, or is not, exempt from federal and state income taxation.
Bonded Debt – The portion of an issuers total indebtedness represented by outstanding bonds.
Callable Bond – A bond which permits or requires the issuer to redeem the obligation before the state
maturity date at a specified price, the call price, usually at or above par value.
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Capital Appreciation Bonds (CAB) – A long-term security on which the investment return is reinvested at a
state compound rate until maturity. The investor receives a single payment at maturity representing both the
principal and investment return.
Commercial Paper – Very short-term, unsecured promissory notes issued in either registered or bearer form,
and usually backed by a line of credit with a bank.
Coupon Rate – The annual rate of interest payable on a coupon bond (a bearer bond or bond registered as to
principal only, carrying coupons evidencing future interest payments), expressed as a percentage of the
principal amount.
Debt Limit – The maximum amount of debt which an issuer is permitted to incur under constitutional,
statutory or charter provision.
Debt Service – The amount of money necessary to pay interest on an outstanding debt, the serial maturities of
principal for serial bonds, and the required contributions to an amortization or sinking fund for term bonds.
Demand Notes (Variable Rate) – A short-term security which is subject to a frequently available put option
feature under which the holder may put the security back to the issuer after giving specified notice. Many of
these securities are floating or variable rate, with the put option exercisable on dates on which the floating
rate changes.
Double Barreled Bonds (Alternative Revenue Bonds) – A bond which is payable from the revenues of a
governmental enterprise and are also backed by the full faith and credit of the governmental unit.
Enterprise Funds - Funds that are financed and operated in a manner similar to private business in that goods
and services provided are financed primarily through user charges.
General Obligation Bond - A bond for whose payment the full faith and credit of the issuer has been pledged.
More commonly, but not necessarily, general obligation bonds are payable from ad valorem property taxes
and other general revenues.
Lease Purchase Agreement (Capital Lease) - A contractual agreement whereby the government borrows
funds from a financial institution or a vendor to pay for capital acquisition. The title to the asset(s) normally
belongs to the government with the lessor acquiring security interest or appropriate lien therein.
Letter of Credit - A commitment, usually made by a commercial bank, to honor demands for payment of a
debt upon compliance with conditions and/or the occurrence of certain events specified under the terms of
the commitment.
Level Debt Service - An arrangement of serial maturities in which the amount of principal maturing increases
at approximately the same rate as the amount of interest declines.
Long-Term Debt - Long-term debt is defined, for purposes of this policy, as any debt incurred whose final
maturity is more than three years.
Maturity - The date upon which the principal of a municipal bond becomes due and payable to bondholders.
Mini-bonds - A small denomination bond directly marketed to the public.
Net Interest Cost (NIC) - The traditional method of calculating bids for new issues of municipal securities. The
total dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount
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bid, and then reduced to an average annual rate. The other method is known as the true interest cost (see
"true interest cost").
Offering Circular - Usually a preliminary and final document prepared to describe or disclose to investors and
dealers information about an issue of securities expected to be offered in the primary market. As a part of the
offering circular, an official statement shall be prepared by the Village describing the debt and other pertinent
financial and demographic data used to market the bonds to potential buyers.
Other Contractual Debt - Purchase contracts and other contractual debt other than bonds and notes. Other
contractual debt does not affect annual debt limitation and is not a part of indebtedness within the meaning
of any constitution or statutory debt limitation or restriction.
Par Value or Face Amount - In the case of bonds, the amount of principal which must be paid at maturity.
Parity Bonds - Two or more issues of bonds which have the same priority of claim or lien against pledged revenues
or the issuer's full faith and credit pledge.
Principal - The face amount or par value of a bond or issue of bonds payable on stated dates of maturity.
Private Activity Bonds - One of two categories of bonds established under the Tax Reform Act of 1986, both of
whom are subject to certain tests and State volume caps to preserve tax exemption.
Ratings - Evaluations of the credit quality of notes and bonds, usually made by independent rating services, which
generally measure the probability of the timely repayment of principal and interest on municipal bonds.
Refunding Bonds - Bonds issued to retire bonds already outstanding.
Registered Bond - A bond listed with the registrar as to ownership, which cannot be sold or exchanged without a
change of registration.
Reserve Fund - A fund which may be used to pay debt service if the sources of the pledged revenues do not
generate sufficient funds to satisfy the debt service requirements.
Self-Supporting or Self Liquidating Debt - Debt that is to be repaid from proceeds derived exclusively from the
enterprise activity for which the debt was issued.
Short-Term Debt -Short-term debt is defined for purposes of this policy as any debt incurred whose final maturity
is three years or less.
Spread - The income earned by the underwriting syndicate as a result of differences in the price paid to the issuer
for a new issue of municipal bonds, and the prices at which the bonds are sold to the investing public, usually
expressed in points or fractions thereof.
Tax-Exempt Bonds - For municipal bonds issued by the Village tax-exempt means interest on the bonds are not
included in gross income for federal income tax purposes; the bonds are not items of tax preference for purposes
of the federal, alternative minimum income tax imposed on individuals and corporations; and the bonds are
exempt
from taxation by the State of Illinois.
Tax Increment Bonds - Bonds secured by the incremental property tax revenues generated from a redevelopment
project area.
Term Bonds - Bonds coming due in a single maturity.
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True Interest Cost (TIC) - Also known as Canadian Interest Cost. A rate which, when used to
discount each amount of debt service payable in a bond issue, will produce a present value precisely equal to the
amount of money received by the issuer in exchange for the bonds. The TIC method considers the time value of
money while the net interest cost (NIC) method does not.
Yield to Maturity - The rate of return to the investor earned from payments of principal and interest, with interest
compounded semiannually and assuming that interest paid is reinvested at the same rate.
Zero Coupon Bond - A bond which pays no interest, but is issued at a deep discount from par, appreciating to its
full value at maturity.
Dated April 18, 2016
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Village of Buffalo Grove
Fixed Asset and Capital Equipment Capitalization Policy
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Fixed Asset and Capital Equipment Capitalization
Purpose and Overview:
The government’s role is to provide services to its citizens and as part of that duty, a responsibility exists to
maintain stewardship over the resources that are used to provide those services. Control over fixed assets is
necessary to ensure that these assets are used properly and efficiently. Appropriate systems and procedures will
be established and revised from time-to-time in order to be assured that assets are adequately controlled.
The purpose of recording the general fixed assets of the Village is primarily for stewardship purposes, in order to
provide for physical and dollar control, and for an accounting of general governmental capital planning and
acquisitions over the years. In addition, generally accepted accounting principles as they apply to public entities
require the inclusion of financial data regarding fixed and general asset accounting within the Village’s
Comprehensive Annual Financial Report.
Assets included within a fixed asset control system should possess the following attributes:
1. They must be tangible
2. Have a useful life of greater than one year
3. Be of a "significant" dollar value
The general purpose given to recording fixed and general assets is to facilitate the protective custody of the
property. A good system permits the fixation of responsibility of custody and for the proper use of specific assets
within the using department(s). The taking of an actual physical inventory on a regular basis can increase the
control capabilities of the Village’s system and help insure overall integrity. Other purposes usually cited for asset
control is:
1. Insuring assets for risk management purposes
2. Centralizing asset documentation and reporting systems
3. Developing estimates for asset replacement purposes
4. Allowing for completeness of financial statements
5. Providing for management of fixed assets regarding acquisition, declaration of surplus and
disposition.
The end purpose of this Policy will be to provide a guide to the organization, inventory and reporting of data for
the Village of Buffalo Grove’s Fixed and General Asset Management System.
Asset Control Policy:
The following will apply regarding asset control policies for the Village of Buffalo Grove:
1. All assets acquired by the Village will be recorded within the Fixed Asset Management System
maintained within Lotus Notes as an independent database. Assets to be controlled should be acquired
as a capital acquisition and possess a significant value. The minimum value for control purposes will be
$10,000 per individual piece of equipment. Equipment carrying a value less than $10,000 will be
accounted for internally based the type of asset and upon the discretion of the Department Director.
The capitalization threshold for capital construction and/or infrastructure improvements will be $25,000.
2. The cost of the asset will include the actual purchase price plus any other additional charges incurred to
put the asset into service. Absent any data on original cost, a realistic estimate will be used. New capital
construction will be value as the sum of all charges and costs to put the asset into service.
3. Responsibility for all asset control will be assigned to the individual department. All changes in the
inventory for whatever reason must be reported by that department.
4. The system will be maintained by the Department of Finance and General Services but will be available
within the MIS network within Lotus Notes as a read-only database. Finance will input new acquisitions
as well as deletions and transfers. The status of all assets will be posted through an Inventory Control
Record.
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5. The department initiating an acquisition, deletion or transfer of an asset should notify the Finance
Department of these events. Changes to the database will be initiated as appropriate.
6. All asset acquisitions should be by purchase order unless they are for assets donated or contributed to
the Village. All deletions/retirements will be declared surplus by ordinance. Such ordinances will be
prepared by the Finance Department.
7. All asset acquisitions will be identified, when appropriate, with tags provided by the Finance
Department. Tags will be affixed to the asset acquired by department personnel.
8. At a minimum once per year, an inventory will be conducted of all general fixed assets. This will be prior
to the conclusion of the fiscal year and will be used for posting to the Village’s financial records and for
preparation of any surplus declaration.
9. Any final inventory values will be considered the official financial record of the Village subject to
independent review and audit.
Costing of General Fixed Assets:
General fixed assets should be recorded at their original cost; if original cost is unknown, an estimate will be
acceptable if reasonable and customary for similar assets. As stated, an asset that is to be included within the
inventory should have a significant value. The significant value test is mostly subjective, and accordingly, it is
necessary to exercise some level of judgment in determining which items should be treated as controlled assets.
The judgment will be minimized when controls are improved when capitalization policies are in place and
accepted.
Maintaining the System:
Accounting for additions can be accomplished through several methods. Data from purchasing records for all
assets that are quantified are to be noted on the departmental requisition/purchase order for identification and
entry into the database. Accounting for deletions can be more difficult because of trade-ins, transfers,
retirements, loss or strip downs for spare parts. The database will be considered the primary link between the
individual asset and the general ledger fixed asset accounts. It should be possible to reconcile the detail in the
fixed asset database with the general ledger control account(s). The basic elements to be included as part of the
asset record will be as follows:
• Description of the asset
• Model and serial numbers
• Date acquired/deleted/changed
• Purchasing department as well as location of the asset
• Estimated useful life
• Cost, purchase order number, vendor
• Asset control number
• Date, method and authorization for disposition
Other information may be requested, as is determined necessary to maintain the control system.
Once the asset control system is in place and operational, it will be necessary to perform periodic reviews to
determine whether the system has been properly established, supported and functioning. The objective of an
inventory is to determine if the assets are still in service, on-hand and to make any corrective actions as soon as
possible. In addition to what is assumed would be a full departmental inventory, periodic review can consist of any
of the following:
1. Reconciling the asset control ledgers to the Village’s general ledger
2. Tracing a random sample of assets from the database to the physical location of assets
3. Taking the database list and tracing a random sample of entries to actual assets
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Tagging of Assets:
There will be two primary considerations when a decision is made to tag an asset. First, is it important to identify
this individual asset from another of a similar kind? Will records need to be changed each time the asset moves to
a new location of is retired? If the answer is yes to both questions, the assets should and will be tagged.
Inventory control numbers will be assigned in consecutive order without regard to type of asset or location. The
use of a permanent number (unless lost and replaced) permits control over an asset throughout its useful life
regardless of status until such asset is retired or disposed of. Once an asset is disposed, the number will be retired
and not reissued. Placement location will be left to the discretion of the department. Ideally, tags will be placed
where they are accessible and not subject to defacement or marring by normal activity.
Inventory Control Record:
Anytime the status of an asset is affected, the Inventory Control Record (attached) must be completed by the
initiating department. With an acquisition, the Record will be prepared by the Department of Finance and General
Services although this does not preclude a purchasing department from preparing a Record in the case of a
donation or acquisition that may be occur. With an acquisition, a copy of the Record will be returned to the
purchasing department with an assigned control tag.
Amendments and Adoptions to current Village of Buffalo Grove Policies:
The policies in the budget document are all reflective of their current, board approved, versions. Policies and
procedures are examined by staff annually, in some cases they may be looked more frequently depending on the
demands of the residents, department efficiencies, or market demands. Any changes that are proposed by staff
and presented to the board for approval are done so in a manner that they are a standalone amendment to the
current ordinance. No policy and procedure shall be passed through the adoption of a larger document, such as
the budget or comprehensive annual financial report. Staff will clearly present the proposed amendments to, or
adoption of, any policy changes and additions. Each item will be presented as a single item to ensure a
transparent explanation of what is requested and the intended outcome of the request.
Revenue Collection Policy
1. Purpose
The purpose of this document is to serve as a guide to identify major revenue sources, the method of
collection, and the process of improving compliance rates. The ability of Village to influence the success of
collection is discussed with each category.
2. Scope
The scope of this document will be to explore all defined and ordinary revenue streams of the Village.
Revenues will be identified by category, which will correspond directly to the budget document. Within each
category a discussion of each type or similar type revenue will be addressed. This document will not discuss
each revenue line item in the budget, nor will it go in depth about miscellaneous one time or non-recurring
revenue.
3. Overview
Listed below is an overview of each revenue category that includes a short synopsis of the system of collection
of major revenues and the influence the Village has on the collection of the revenue. It also includes a
collection plan to improve collection of the revenue.
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4. Revenue Sources
4.1 Real Estate Taxes
Real estate property tax revenues are one of the most stable as collections typically exceed
ninety-nine percent of the amount levied each year. Once the counties are directed to extend
the levy, the Village has no ability to either control the timing of the tax bill mailings or the
collection of the amount due. The counties control the revenue distribution dates to the Village.
The counties do add late fees to late payments. In the event the property tax is not collected
from a parcel the property will be sold at a judicial sale to recoup the amount owed.
The Village does have an option to allow each county to overextend the levy to offset loss in
collections. Lake County allows for an over-extension of two percent on the debt service levies.
Cook County allows for an overextension of three percent on corporate purpose and pension
levies and five percent on debt service levies. Historically, with strong rates of collection, the
Village opts out of the over-extension option through resolution.
4.2 Utility Billing Enterprise
The Village directly bills all water utility customers for the amount of water consumed and for a
storm water management fee. The storm water fee is charged as a flat amount to residential
properties and based upon square footage for commercial/industrial properties. In order to
create efficiencies in billing, the Village also bills all Lake County sanitary sewer fees to Lake
County properties.
Over ninety-three percent of the water billing revenue due is paid on time. The entire Village is
billed over a two month period. Commercial, industrial and multifamily properties are billing
monthly. Lake County single family households are billed on odd months and Cook County single
family households are billed on even months.
The Village uses a combination of penalties including late fees and service interruption fees to
reduce the number of delinquent service accounts.
Late fees are assessed to service accounts that fail to pay the amount due by the due date. Water
utility customers have approximately twenty-one days to pay the Village. The late fee is charged
at a rate of 1.5 percent per month on the balance due.
For those accounts that fall into delinquency past sixty days, the account is subject to be shut off.
A warning notice is mailed to the service address with the date of the impending service
interruption. Once the water is turned off, the customer must pay a service interruption charge
to reinstate service.
At any point in the billing and collection process, up to water being shut off, a resident can enter
into a payment plan for past due balances. Upon a successful completion of the terms of the
plan, the customer will avoid losing water service. A utility customer is limited to one payment
plan arrangement per year.
All customers are required to pay the entire water bill balance, current and outstanding, before a
real estate transfer tax stamp is issued.
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4.3 State Taxes
The State is responsible for collecting and remitted base sales taxes (1%), home rule sales tax
(1%), income and use tax (per capita), telecommunications tax (6%) and motor fuel tax (per
capita). Enforcement of revenue collection is handled by the Illinois Department of Revenue
(IDOR). Payments are made to the village on a monthly basis. Staff monitors the IDOR website to
ensure timely remittances from the State of Illinois.
4.4 Locally Collected Taxes/Fees
The Village collects certain tax revenues, defined by state or local ordinance, directly from the
taxpayer. These types of taxes include natural gas ($.05/therm), electricity (sliding usage scale –
maximum by statute), and cable franchise (5%). The finance department currently monitors
these taxes on a monthly basis for the utility taxes and bi-monthly for the cable franchise fees.
Upon a new property being established in the Village, that address is forwarded to the utility
companies including, ComEd, NiCOR or Northshore Gas, Comcast and/or AT&T to establish tax
collections. Staff is provided with an annual list of accounts by the utility companies to cross
reference with the Village’s GIS data.
4.5 Village Imposed Taxes
The Village imposes taxes related to locally generated revenue from specific businesses. These
taxes are defined by ordinance. These taxes include prepared food and beverage tax(1%) and
hotel/motel tax (5%). Staff reviews the State of Illinois tax filings (ST-1) to compare to the
amount paid to the Village. The Village requires state tax documentation to be remitted with the
payment of these taxes for auditing purposes.
The Village reserves the right to audit a businesses’ tax records if staff determines that the
business may either be underreporting taxable income or not submitting taxes on a timely basis.
Real estate transfer taxes ($3/$1,000 sales consideration) are collected when homes are sold.
The real estate transfer tax stamp will not be issued unless all obligations owed the Village are
satisfied.
4.6 Licensing Fees
Business, tobacco, liquor, vending machine, chauffer, alarm, and pet licenses are minor revenue
sources and renew annually. The major licensing efforts are for business licenses that are due
January 1st and liquor licenses due May 1st when the renewal period ends the Community
Development will send the inspector out to ensure those businesses that did not renew, or the
new businesses that did not obtain the proper licenses are no longer conducting business.
Businesses found to be without the appropriate licensing will be closed until the license fee and
all associated fines for operating without a license are paid.
Gaining compliance for pet licensing is a perennial challenge. For animal licensing, the Village will
attempt to work with the counties to obtain rabies certificate data. Those residences with a pet
that received a rabies inoculation, but did not purchase an animal tag, will receive a notice about
the Village ordinance requiring a tag.
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4.7 Community Development Revenue and Fees
Building development, engineering, contractor registration, plan review, filing, inspection, and
permits fees are easy to collect based upon the conditional nature of the fee. Without the
payment of the fee work cannot proceed. The Community Development Department performs
random inspections of neighborhoods to ensure all work is being completed under permit and to
the specifications of adopted building codes. To improve compliance, the Village doubles the cost
of permit fees when work is completed without a permit.
4.8 Fines and Administrative Fees
Fines and administrative fees are an important revenue into the Village of Buffalo Grove. Certain
line items like accident reports, impounding fees, DUI assessments, subpoena fees, and bail fees
have a high rate of collection because the user has a direct need as a result of paying those fees.
Other items Village ordinance fines, false alarm fees, and paramedic services are more volatile.
Paramedic Service fees are collected less than billed due to insurance reductions and in some
cases the timeliness is stretched out over a long period of time due to the fact that users do not
pay and these fees are ultimately collected through a collection agency or written off.
Village ordinance fines are more difficult to collect. There is an escalating penalty based on the
length a ticket remains unpaid. There are also two programs in place to recapture unpaid fines.
One was mentioned previously, a resident cannot sell a home until all financial obligations are
met The second program is the Village’s participation in the Illinois Debt Recovery Program. This
program collects any debt due the Village through a garnishment from the debtors pay check or
tax refund. This will be an additional part of the regular collection process for the Village of
Buffalo Grove. After the debt has been outstanding for seven years it is no longer eligible for the
Illinois debt recovery program it will be sent to a collection agency to be recouped.
The Village also collects a portion of tickets that go to Cook and Lake County. The Village adopted
an Administrative Adjudication Program. Local ordinance violations are sent to administrative
adjudication to be heard. Upon the disposition of the hearing, the adjudicate must pay the fine
prior to leaving Village Hall.
4.9 Golf Revenues
The Village owns and operates two 18 hole golf courses. Fees are charges to play daily golf, use
the driving range, to obtain a membership, and purchase merchandise. Collection rates are not
an issue as a service or product is not received without payment.
Both golf courses are home to restaurant facilities that are required to pay rent for use of the
Village owned facilities. Both tenants currently pay 5 percent of the net earnings from their
restaurant operations back to the village. The funds are due by the 15th of the concurring month.
The rent payment is to be accompanied by the state of Illinois sales tax submission document to
ensure the appropriate amount is paid to the Village as an internal audit of the process. Within
the lease agreement is the option for Village staff to inspect financial records.
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4.10 Investment Income
The Village has implemented a strategy of purchasing A+ or higher municipal step bonds and
other securities backed by FDIC, insurance, or the full faith in credit of the United States
Government. The terms will be staggered to take advantage of better interest rates on longer
term investments, while concurrently investing in short term ventures that yield a competitive
term and make funds available as the Village needs them based on the cash flow analysis
completed by the finance department. The collection of this revenue is highly reliable and
therefore there is no plan to improve collections.
The Village will look for opportunities to increase revenue by continuous reviewing collection patterns of
revenue and examine methods to increase the compliance rates. The policy will be reviewed annually
and amended with new sources of revenue and/or changes in the strategies to collect the revenue.
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Village of Buffalo Grove
Revenue Collection Policy
355
VILLAGE OF BUFFALO GROVE – REVENUE COLLECTION POLICY
1. Purpose
The purpose of this document is to serve as a guide to identify major revenue sources, the method of
collection, and the process of improving compliance rates. The ability of Village to influence the success of
collection is discussed with each category.
2. Scope
The scope of this document will be to explore all defined and ordinary revenue streams of the Village.
Revenues will be identified by category, which will correspond directly to the budget document. Within each
category a discussion of each type or similar type revenue will be addressed. This document will not discuss
each revenue line item in the budget, nor will it go in depth about miscellaneous one time or non-recurring
revenue.
3. Overview
Listed below is an overview of each revenue category that includes a short synopsis of the system of collection
of major revenues and the influence the Village has on the collection of the revenue. It also includes a
collection plan to improve collection of the revenue.
4. Revenue Sources
4.1 Real Estate Taxes
Real estate property tax revenues are one of the most stable as collections typically exceed
ninety-nine percent of the amount levied each year. Once the counties are directed to extend
the levy, the Village has no ability to either control the timing of the tax bill mailings or the
collection of the amount due. The counties control the revenue distribution dates to the Village.
The counties do add late fees to late payments. In the event the property tax is not collected
from a parcel the property will be sold at a judicial sale to recoup the amount owed.
The Village does have an option to allow each county to overextend the levy to offset loss in
collections. Lake County allows for an over-extension of two percent on the debt service levies.
Cook County allows for an overextension of three percent on corporate purpose and pension
levies and five percent on debt service levies. Historically, with strong rates of collection, the
Village opts out of the over-extension option through resolution.
4.2 Utility Billing Enterprise
The Village directly bills all water utility customers for the amount of water consumed and for a
storm water management fee. The storm water fee is charged as a flat amount to residential
properties and based upon square footage for commercial/industrial properties. In order to
create efficiencies in billing, the Village also bills all Lake County sanitary sewer fees to Lake
County properties.
Over ninety-three percent of the water billing revenue due is paid on time. The entire Village is
billed over a two month period. Commercial, industrial and multifamily properties are billing
356
monthly. Lake County single family households are billed on odd months and Cook County single
family households are billed on even months.
The Village uses a combination of penalties including late fees and service interruption fees to
reduce the number of delinquent service accounts.
Late fees are assessed to service accounts that fail to pay the amount due by the due date. Water
utility customers have approximately twenty-one days to pay the Village. The late fee is charged
at a rate of 1.5 percent per month on the balance due.
For those accounts that fall into delinquency past sixty days, the account is subject to be shut off.
A warning notice is mailed to the service address with the date of the impending service
interruption. Once the water is turned off, the customer must pay a service interruption charge
to reinstate service.
At any point in the billing and collection process, up to water being shut off, a resident can enter
into a payment plan for past due balances. Upon a successful completion of the terms of the
plan, the customer will avoid losing water service. A utility customer is limited to one payment
plan arrangement per year.
All customers are required to pay the entire water bill balance, current and outstanding, before a
real estate transfer tax stamp is issued.
4.3 State Taxes
The State is responsible for collecting and remitted base sales taxes (1%), home rule sales tax
(1%), income and use tax (per capita), telecommunications tax (6%) and motor fuel tax (per
capita). Enforcement of revenue collection is handled by the Illinois Department of Revenue
(IDOR). Payments are made to the village on a monthly basis. Staff monitors the IDOR website to
ensure timely remittances from the State of Illinois.
4.4 Locally Collected Taxes/Fees
The Village collects certain tax revenues, defined by state or local ordinance, directly from the
taxpayer. These types of taxes include natural gas ($.05/therm), electricity (sliding usage scale –
maximum by statute), and cable franchise (5%). The finance department currently monitors
these taxes on a monthly basis for the utility taxes and bi-monthly for the cable franchise fees.
Upon a new property being established in the Village, that address is forwarded to the utility
companies including, ComEd, NiCOR or Northshore Gas, Comcast and/or AT&T to establish tax
collections. Staff is provided with an annual list of accounts by the utility companies to cross
reference with the Village’s GIS data.
4.5 Village Imposed Taxes
The Village imposes taxes related to locally generated revenue from specific businesses. These
taxes are defined by ordinance. These taxes include prepared food and beverage tax(1%) and
hotel/motel tax (5%). Staff reviews the State of Illinois tax filings (ST-1) to compare to the
357
amount paid to the Village. The Village requires state tax documentation to be remitted with the
payment of these taxes for auditing purposes.
The Village reserves the right to audit a businesses’ tax records if staff determines that the
business may either be underreporting taxable income or not submitting taxes on a timely basis.
Real estate transfer taxes ($3/$1,000 sales consideration) are collected when homes are sold.
The real estate transfer tax stamp will not be issued unless all obligations owed the Village are
satisfied.
4.6 Licensing Fees
Business, tobacco, liquor, vending machine, chauffer, alarm, and pet licenses are minor revenue
sources and renew annually. The major licensing efforts are for business licenses that are due
January 1st and liquor licenses due May 1st when the renewal period ends the Community
Development will send the inspector out to ensure those businesses that did not renew, or the
new businesses that did not obtain the proper licenses are no longer conducting business.
Businesses found to be without the appropriate licensing will be closed until the license fee and
all associated fines for operating without a license are paid.
Gaining compliance for pet licensing is a perennial challenge. For animal licensing, the Village will
attempt to work with the counties to obtain rabies certificate data. Those residences with a pet
that received a rabies inoculation, but did not purchase an animal tag, will receive a notice about
the Village ordinance requiring a tag.
4.7 Community Development Revenue and Fees
Building development, engineering, contractor registration, plan review, filing, inspection, and
permits fees are easy to collect based upon the conditional nature of the fee. Without the
payment of the fee work cannot proceed. The Community Development Department performs
random inspections of neighborhoods to ensure all work is being completed under permit and to
the specifications of adopted building codes. To improve compliance, the Village doubles the cost
of permit fees when work is completed without a permit.
4.8 Fines and Administrative Fees
Fines and administrative fees are an important revenue into the Village of Buffalo Grove. Certain
line items like accident reports, impounding fees, DUI assessments, subpoena fees, and bail fees
have a high rate of collection because the user has a direct need as a result of paying those fees.
Other items Village ordinance fines, false alarm fees, and paramedic services are more volatile.
Paramedic Service fees are collected less than billed due to insurance reductions and in some
cases the timeliness is stretched out over a long period of time due to the fact that users do not
pay and these fees are ultimately collected through a collection agency or written off.
Village ordinance fines are more difficult to collect. There is an escalating penalty based on the
length a ticket remains unpaid. There are also two programs in place to recapture unpaid fines.
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One was mentioned previously, a resident cannot sell a home until all financial obligations are
met The second program is the Village’s participation in the Illinois Debt Recovery Program. This
program collects any debt due the Village through a garnishment from the debtors pay check or
tax refund. This will be an additional part of the regular collection process for the Village of
Buffalo Grove. After the debt has been outstanding for seven years it is no longer eligible for the
Illinois debt recovery program it will be sent to a collection agency to be recouped.
The Village also collects a portion of tickets that go to Cook and Lake County. The Village adopted
an Administrative Adjudication Program. Local ordinance violations are sent to administrative
adjudication to be heard. Upon the disposition of the hearing, the adjudicate must pay the fine
prior to leaving Village Hall.
4.9 Golf Revenues
The Village owns and operates two 18 hole golf courses. Fees are charges to play daily golf, use
the driving range, to obtain a membership, and purchase merchandise. Collection rates are not
an issue as a service or product is not received without payment.
Both golf courses are home to restaurant facilities that are required to pay rent for use of the
Village owned facilities. Both tenants currently pay 5 percent of the net earnings from their
restaurant operations back to the village. The funds are due by the 15th of the concurring month.
The rent payment is to be accompanied by the state of Illinois sales tax submission document to
ensure the appropriate amount is paid to the Village as an internal audit of the process. Within
the lease agreement is the option for Village staff to inspect financial records.
4.10 Investment Income
The Village has implemented a strategy of purchasing A+ or higher municipal step bonds and
other securities backed by FDIC, insurance, or the full faith in credit of the United States
Government. The terms will be staggered to take advantage of better interest rates on longer
term investments, while concurrently investing in short term ventures that yield a competitive
term and make funds available as the Village needs them based on the cash flow analysis
completed by the finance department. The collection of this revenue is highly reliable and
therefore there is no plan to improve collections.
The Village will look for opportunities to increase revenue by continuous reviewing collection patterns of revenue
and examine methods to increase the compliance rates. The policy will be reviewed annually and amended with
new sources of revenue and/or changes in the strategies to collect the revenue.
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Village of Buffalo Grove
FY 2017-2021 Five Year Operating Forecast
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VILLAGE OF
BUFFALO GROVE
Purpose
The Five-Year Operating Forecast takes a forward look at the Village’s General Fund’s fund revenues and
expenditures with the purpose of identifying financial trends and potential shortfalls so the Village can proactively
address them. For the purposes of constructing the forecast, operating revenues are measured against operation
expenditures without including any prior period fund balance to subsidize revenue.
The goals of the Five-Year Operating Forecast are to assess the Village’s ability, over the next five years, to
maintain current service levels based on projected revenue growth, evaluate future sustainability by aligning
operating revenues and expenditures, and ensure proper funding of reserves for vehicles, buildings and
technology. The assessment analyzes the capacity to fund capital projects and also restore unassigned fund
balance reserves to ultimately reach a balance that will cover four and a half months of expenditures (35%).
It is important to stress that this forecast is not a budget. It does not dictate expenditure decisions; rather it
identifies the need to prioritize allocations of Village resources. The forecast sets the stage for the budget process
and aids both staff and the President and Board of Trustee in establishing priorities and allocating resources
appropriately. As part of the process, the Village is working on aligning core
revenues with core services. The revenues that are less dependable because
they are subject to market or economic risk will support less essential
services.
As a governmental entity, changes in strategy that involve service delivery
should be slow and methodical. The forecast provides a snapshot of the
Village’s fiscal health based on numerous assumptions over the next five
years. The Five-Year Financial Forecast is a planning tool and should be
considered fluid in its construction. As new significant data or trends
emerge the document will be revised, at minimum, on an annual basis.
Financial Focus and Methodologies
The General Fund is the main operating fund and accounts for the core and
support services provided by the Village including public safety (police &
fire), public works, community development, and administration. All major discretionary revenues such as
property tax, sales tax, income tax, telecommunication, and utility use tax are accounted for within the General
Fund. For purposes of the analysis, final audited 2015 expenditures set the baseline for analysis and are inflated or
adjusted accordingly based upon changing service needs and known changes that were incorporated in the FY
2016 Budget. The General Fund is the primary focus of the forecast as it represents about 50 percent of the total
Village Budget. The second largest Village Fund is the Water and Sewer Fund accounting for 24 percent of the total
budget. A twenty-year funding analysis is completed annually for that enterprise activity
In the absence of any known service level modifications, the forecast assumes the continuation of current service
levels and the costs projected over five years. Revenues are estimated based on anticipated growth and does not
consider increases in revenues generated by new fees or increases in fees, new development, and/or charges
beyond what is prescribed by current ordinance.
In the development of a long-term financial forecast, the Village reviews external and internal factors that could
impact the either the collection of revenue or the price of acquiring goods or providing services. Evaluating how
The intent of the Five Year Operating Forecast is to evaluate resource allocations to ensure the proper funding levels for services, capital, infrastructure and maintaining reserves.
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the regional impact of the national economy (macro) influences the local economy (micro) is an important step in
the process.
The national economy affects both state and local economies, although this impact varies by jurisdiction and may
actually have an inverse effect on a community. Some of the economic indicators the Village uses in financial
analysis include; inflation, stock market returns, employment, housing starts, vehicle sales, interest rates, and
manufacturing activity.
ECONOMIC INDICATORS
Inflation – As inflation goes up, the cost of goods sold go up, increasing retail sales tax revenue. As prices rise, so
will business income tax receipts. Conversely, the Village will have to pay more for goods and services. The Village
uses the Illinois Municipal Cost Index (MCI) as the primary inflation metric. The MCI is an amalgam of price indices
based on types and goods purchased by Illinois Municipalities. The MPI is .96 percent. The most recent (June 2015)
Consumer Price Index is at 1.45 percent, Production Price Index is -2.29 percent and Construction Cost index is
2.63 percent.
Stock Market Returns – Stock market returns are a leading indicator and will change before the economy changes.
Approximately 55 percent of all Village pension funds are invested in equities and/or individual stocks. The
performance of the stock market is a significant factor in determining the growth of the property tax levy for
pensions.
Employment – Retail and vehicle sales tend to have inverse relationships with the unemployment rate. Sales tend
to move in the opposite direction of the unemployment rate. Chronic unemployment often spills over into the
residential real estate market resulting in lost real estate transfer tax revenue.
Housing starts - This indicator provides a sense of the overall demand for housing, which can be indicative of local
housing activity. Data maintained by local realtor groups is useful in projecting the future of market recoveries.
Vehicle sales – sales and use tax revenues tend to fall with vehicle sales, which are heavily dependent upon both
employment and interest rates. However, if increases in new vehicles are expected to reduce the value of used
vehicles, the sales and use tax base can actually decline if the depreciation of used vehicles is not equally offset by
the value of new vehicles.
Interest rates – the interest rate impacts the Village’s revenues in several ways. First, investment income will be
affected by interest rates. Second, the availability and cost of capital directly affects business expansion and retail
purchases. As credit is extended and/or rates are lowered, revolving purchases may increase, thereby increasing
development plans and retail sales and, by extension, sales tax and business licenses revenues.
Manufacturing activity – If a Village has a large manufacturing sector, the ISM (Institute of Supply Management
Index) becomes a significant factor in revenue analysis and forecasting. Manufacturers respond to the demand for
their products by increasing production and building up inventories to meet the demand. The increased production
often requires new workers which lowers unemployment figures and can stimulate the local economy.
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Overview of Fiscal Year 2016
Beginning in FY 2014 and continuing through the forecast is a continued effort to evaluate and consolidate services
to improve work flow efficiencies, appropriately fund all capital reserves and increase the resources allocated to
infrastructure maintenance. Over the next two years, the Village will be moving towards program based budgeting.
The result of the change is that budgets will be developed around cost centers and will provide a better framework
to discuss how much services cost.
The first step in program based budgeting was the designation of Internal Service Funds in the FY 2015 Budget.
Internal Service Funds are departments that have a primary objective to support internal operations. That support,
in turn, allows other department to provide core services to the public. Internal Services include Building
Maintenance, Central Garage, and Information Technology.
Factors that are to be considered moving into the next five year update include;
• Impact of the real estate market and assessed valuations. Assessed values for taxable property have
declined 11.3 percent over the last four years. The brunt of the changing tax burden has fallen on
residential properties. Property values are moderating as tax year 2015 was the first year of growth since
2009.
• State of Illinois budget crisis. The State of Illinois will have an emergency spending plan that will likely
carry through to the next election. At this point it appears that the Local Government Distributive Fund
distribution is safe.
• Impact of Employer Pension Costs. The tax levies for the three pension systems account for 40 percent of
the property tax levy. Additional pressure on the tax levy to support growing pension costs will impact the
ability to increase taxes for core services.
• Health Care Cost and the Patient Protection Affordable Care Act. The Village is currently on track to attain
“Cadillac Tax” status in 2018. The Village will continue to promote wellness initiatives as a means of
controlling health care costs.
• Commercial/Retail Development. The economy’s impact on existing sales tax generators as well as
development or redevelopment of Dundee, Milwaukee Road corridors and Lake Cook Corridors.
• Infrastructure. The ability to keep pace with the maintenance needs of Village owned assets continues to
be a significant financial challenge.
Forecast Assumptions
The following is forecasted revenues and expenditures for the next five years. The column on the far right is an
inflation index (if warranted).
General Fund Revenues Projected (2017-2021)
2017 2018 2019 2020 2021 Growth
Property Taxes 14,455,991 14,745,111 15,040,013 15,340,814 15,647,630 1.02
Income & Use Taxes 5,660,141 5,829,945 6,004,844 6,184,989 6,370,539 1.03
State Sales Tax 5,812,657 6,487,037 7,181,648 7,897,097 8,134,010 1.03
Home Rule Sales Tax 3,740,375 3,852,586 3,968,164 4,087,209 4,209,825 1.03
Real Estate Transfer Tax 910,000 937,300 965,419 994,382 1,024,213 1.03
Telecommunications Tax 1,644,309 1,644,309 1,644,309 1,644,309 1,644,309 1.00
Prepared Food and Beverage Tax 776,479 799,773 823,767 848,480 873,934 1.03
Utility Tax-Electric/Natural Gas 2,640,000 2,666,400 2,693,064 2,719,995 2,747,195 1.01
Licenses 291,600 291,600 291,600 291,600 291,600 1.00
Building Revenue & Fees 1,020,000 1,030,200 1,040,502 1,050,907 1,061,416 1.01
Intergovernmental Revenue-Local 270,956 276,375 281,902 287,540 293,291 1.02
Fines & Fees-Police & Fire 1,748,855 1,748,855 1,748,855 1,748,855 1,748,855 1.00
Storm Water Management Fees 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1.00
Operating Transfers 748,075 770,517 793,633 817,442 841,965 1.03
Miscellaneous Revenue 1,520,414 1,535,618 1,550,974 1,566,484 1,582,148 1.01
Total Revenues 42,439,851 43,815,626 45,228,693 46,680,101 47,670,930
Annual Increase 3.2% 3.2% 3.2% 2.1%
General Fund Expenditures Projected
(2017-2021)
2017 2018 2019 2020 2021 Growth
Personal Services 20,032,017 20,833,298 21,666,630 22,533,295 23,434,627 1.04
Personal Benefits 10,793,107 11,224,831 11,673,825 12,140,778 12,626,409 1.04
Operating Expenses 2,787,072 2,842,813 2,899,670 2,957,663 3,016,816 1.02
Insurance & Legal Services 1,168,819 1,215,572 1,264,195 1,314,762 1,367,353 1.04
Commodities 448,377 459,586 471,076 482,853 494,924 1.025
Maintenance & Repairs 3,098,279 3,175,736 3,255,129 3,336,508 3,419,920 1.025
Capital Outlay 408,800 419,020 429,496 440,233 451,239 1.025
All Other Expenses 355,250 364,131 373,235 382,565 392,130 1.025
Total Expenditures 39,091,721 40,534,988 42,033,254 43,588,657 45,203,417
Operating Surplus/(Deficit) 3,348,130 3,280,638 3,195,439 3,091,444 2,467,512
Annual Increase 3.7% 3.7% 3.7% 3.7%
General Fund Transfers Projected
(2017-2021)
2017 2018 2019 2020 2021
Capital Reserve - Vehicles 700,000 700,000 700,000 700,000 700,000
Capital Reserve - Facilities 300,000 300,000 300,000 300,000 300,000
Capital Reserve - Technology 100,000 100,000 100,000 100,000 100,000
Capital Reserve – Storm Water 360,000 360,000 360,000 360,000 360,000
Motor Fuel Tax 748,075 770,517 793,633 817,442 841,965
Capital Improvement Plan 1,095,695 1,162,374 960,000 360,000 400,000
Total Transfers 3,303,770 3,392,891 3,213,633 2,637,442 2,701,965
Total Fund Surplus/(Deficit) 44,360 (112,253) (18,194) 454,002 (234,453)
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The forecast provides two levels of analysis. The first level is to show the General Fund’s ability to meet day-to-day
expenditures. The highlighted row designed as Operating Surplus/ (Deficit) is an indicator of whether anticipated
revenues support operating expenditures. In all five years of the forecast, revenues will support current services.
This is a measure of short-term sustainability.
The second level of the analysis includes transfers for capital projects and infrastructure reserves. Long term
sustainability is measured through the Village’s ability to invest in infrastructure including funding reserves for
vehicles, buildings, equipment, technology, streets (though Motor Fuel Tax), and projects in the Capital
Improvement Plan. Commitments to long term capital programs are identified under “General Fund Transfers –
Projected”. All projects submitted for inclusion in the FY 2017-2021 have been added to this report. After including
these transfers, the total fund surplus at the end of FY 2017 is estimated to be nearly $.04 million.
One of the financial indices the bond rating houses (Standard & Poors and Moody’s Investor Services) cite as the
reason for the current AAA bond rating is the low level of debt. The current budgeting strategy is to try and fully
fund capital reserve programs in order to remain on a pay-as-you-go basis of capital asset financing. If reserve
amounts are depleted, or inadequately funded, staff will need to consider debt financing for future expenditures,
A continued commitment to properly funding capital will require a continued commitment to economic
development and building the sales tax base.
General Fund Reserves
The General Fund Fund Balance Reserve Policy sets forth a minimum unassigned reserve level of 25 percent of the
subsequent year’s budget (capital funding and reserve transfers). Within the adopted Strategic Priorities is a goal
of reestablishing a 35 percent threshold by the end of FY 2017.
It is important to maintain a strong reserve level for several reasons, (1) it provides more time to react and
respond to revenue threats created by economic conditions, (2) it helps to better withstand any unfunded
legislative mandates that will create additional expenditure obligations without corresponding revenue, and (3) to
fund unforeseen infrastructure/capital asset costs. Spending down of prior period reserve balances allows the
Village time to reallocate resources within the budget and restructure service levels to react to the fiscal
environment. After drawing down on the balance to respond to emergency conditions, it is important to rebuild
those reserves in order to remain flexible to respond to the next threat.
The following chart provides a history of fund balance reserves and includes estimates for the current fiscal year
and the five forecasted years using the assumptions in the financial forecast.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
04-05 05-06 06-07 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
pro
2017
pro
2018
pro
2019
pro
2020
pro
2021
pro
Unassigned Fund Balance General Fund
365
The red line on the graph represents the fund balance policy minimum of 25 percent less pension and capital
transfers. In FY 2016 the policy minimum is adjusted to 35 percent to be consistent with Village Strategic Priorities.
At the conclusion of the last audited fiscal year (2015) unassigned fund balance represents 34.03 percent of the
operating expenses of the FY 2016 Budget. Based upon the five year analysis, if all capital and reserve transfers are
made the 35 percent target will not be attained over the next five years if all capital projects and reserve transfers
are programmed.
Revenue Review
Approximately 86 percent of all General Fund revenue is generated from seven revenue sources including property
tax, combined sales tax including prepared food and beverage, income and use tax, telecommunications tax, utility
(natural gas & electricity) use tax and real estate transfer tax.
Almost half of the Village’s major revenue sources are elastic. Elastic revenues are those sources that tend to
fluctuate with the economy. A balance between elastic and inelastic revenue is desired as a hedge against market
volatility. General Fund revenues considered to be elastic include: sales and use taxes, income taxes,
telecommunications tax, real estate transfer tax, building revenue and fees, and investment income. The property
tax is an example of a non-elastic source of revenue as collections are stable and predictable.
The following is a summary of significant Village revenue sources.
PROPERTY TAX
Growth in the corporate property tax levy is tied to the Municipal Cost Index (MCI). The MCI is an amalgam of
several key inflationary indices including the Producer Price Index (PPI), Employment Cost Index (ECI), and the
Consumer Price Index–Urban (CPI-U). The MCI weights the indices accordingly based on how a typical municipality
spends its resources.
The Police and Firefighter Pension Funds levies are calculated by an independent actuary. The pension levies are
pass-through revenues that will have a corresponding expenditure. Beginning in FY 2014, the pension levies for
the Illinois Municipal Retirement Fund and Social Security/Medicare have been added to the General Fund.
FY 2015 is the first year since 2009 where property values had a substantial increase. The increase is due to new
property (additions) coming online. Moving forward the Village should start seeing growth near 3 percent
annually. Because the Village levies a dollar amount, a uniform change across all property classifications has no
financial impact to tax payers.
Listed below is a history of equalized assessed valuations since 2004.
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Future ability to raise property tax revenue to support General Fund operations is challenging, as the corporate
levy must compete for tax dollars with pension and debt service levies. In 2003, levies for pensions accounted for
32.1 percent of the tax extension. In the most recent tax year (2015), pensions represent 39 percent of property
tax as illustrated below. The corporate levy, which funds core General Fund services, has been stagnant until the
current year. There was a 3 percent increase in the 2014 levy. The large increase in 2007 was due to the
elimination of the Village Vehicle Sticker Program. Those revenues were shifted to the property tax with a net
revenue grow of zero.
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
4,000,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Equalized Assessed Valuation
Cook County Total EAV Lake Couty
Corporate Levy -
Public Safety
53%
Pension Levies
39%
Debt Service Levy
8%
Distribution of Property Tax Dollars
367
SALES TAX
Inflation sets the growth baseline for both the base (3%) and home rule sales taxes (3%). Combined, this is the
second largest revenue source for the Village. The base sales tax revenue is directly related to the dollar value of
sales made within the Village. Home rule sales tax applies to the same transactions as the base sales tax except in
the following transactions, food for human consumption off the premises where sold (groceries), prescription and
non-prescription medicines and tangible personal property that is titled with an agency of the State of Illinois.
The assumption for the five-year analysis is that the retail mix will remain substantially similar to what is present
today. The forecast applied to both base and home rule sales tax produces the following;
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 pro 2017 est
State Sales Tax History
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017 pro
Home Rule Sales Tax History
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INCOME TAX
The Illinois Income Tax is imposed on every individual, corporation, trust, and estate earning or receiving income.
The tax is calculated by multiplying net income by a flat rate. The current rate is five percent of net income. The
rate reverted to 3.75 percent beginning January 1, 2015 to December 31, 2024. The rate will then reduce to 3.25
percent starting on January 1, 2025. The formula for distribution for local governments was 10 percent of the
revenue, allocated on a per capita basis, when the rate was 3 percent. When the state rate increased to 5 percent,
the increase was not included in the distribution making the effective per capita distribution to municipalities six
percent.
The Village’s unemployment rate as of May 2016 is 4.4 percent, Cook County is 5.7 percent, Lake County is 5.0
percent, and the State of Illinois is 6.1 percent. The growth in revenue is due to improving corporate earnings,
recovery in employment, and tax changes to increase total net income. The forecast accounts for 3 percent
growth each year through the duration of the forecast. The chart below shows the performance of the revenue
since FY 2006.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017 pro
Income & Use Tax Revenue History
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PREPARED FOOD AND BEVERAGE TAX
This tax (1%) was adopted in 2008 and is levied on the purchase of prepared food for immediate consumption and
the sale of liquor. Similar to sales tax, inflationary growth is the central driver of revenue increases with five-year
increases projected at two percent annually. There are 109 establishments that charge and remit this tax to the
Village. The following chart shows the growth of the revenue since inception.
TELECOMMUNICATIONS TAX
This tax levied at 6 percent on all types of telecommunications except for digital subscriber lines (DSL)
purchased, used, or sold by a provider of internet service (effective July 1, 2008). The exemption of DSL service has
made a significant impact on collections. Recent legislation has also mandated that data packages no longer be
bundled with all other telecommunications billing for the sake of taxation. Those services have been exempted.
This revenue is down almost 37 percent from the peak in FY 2007. The forecast calls for no change over the
remainder of the plan.
$615,000
$635,000
$655,000
$675,000
$695,000
$715,000
$735,000
$755,000
$775,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017 pro
Prepared Food and Beverage Tax
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 est 2017 pro
Telecommunication Tax History
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UTILITY USE TAX (NATURAL GAS & ELECTRICITY)
Natural gas and electricity charges are based on consumption and will fluctuate with seasonal demands. The
Village is charging the highest statutory rate. No growth is projected over the next five years. Any new growth will
be predicated on adding square footage to houses or buildings and offset by more energy efficient construction
and mechanical systems.
REAL ESTATE TRANSFER TAX
Real estate transfer tax is collected at the rate of $3 per $1,000 of sales consideration. This revenue reached a
peak in 2005 at $1.3 million. There has been a recovery in sales since the market reached a bottom in FY 2012.
Traditional sales are increasing as well as the number of high value commercial transactions.
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 est
Real Estate Transfer Tax
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Expenditure Review
The average annual increase in operating expenditures over the next five years is 3.7 percent. In each of the next
five years, wages and benefits account for about 72 percent of all expenditures. The next largest expenditure
account group is for Operating Expenditures (7 percent). For FY 2017 the distribution of General Fund
expenditures is shown in the table below.
PERSONAL SERVICES
Wages are anticipated to increase by a factor of 4 percent each year. The wage forecast anticipates the general
wage increases plus merit based pay range adjustments. The forecast does not anticipate another Voluntary
Separation Incentive (VSI) during the review period. If one is offered, the forecast will need to be adjusted to
reflect as the impact of retirements, the effect of any service realignments, and any hiring decisions become more
evident.
Personnel levels have decreased significantly since 2010 as a result of the Village’s previous VSI programs
combined with reorganization strategies. Full time staffing is at 217 employees or 10.8 percent less than staffing
levels five years ago.
A major initiative in FY 2015 was to establish a pay for performance system that will allow employees to move
through their pay ranges. A merit wage pool will be included with the FY 2017 Budget and managed by the Human
Resources Department. The ability to advance employees through their pay range based upon performance is
critical in maintaining an effective and motivated work force.
Another significant initiative for FY 2016 was the outsourcing of golf course maintenance. The operational savings
will reduce the amount General Fund subsidies to help with cash flow challenges.
PERSONAL BENEFITS
The largest single expenditure within Personal Benefits is for health insurance. The Village is a member of the
Intergovernmental Professional Benefits Cooperative (IPBC). As a member of IPBC, the Village is better able to
stabilize medical costs through risk pooling and provide for a mechanism to help establish positive cash flow and
rebuild reserves. The forecast calls for 4 percent growth each year in premium expenses. Representative from
Arthur J. Gallagher continue to be a strong resource for plan design assistance.
The employees’ contribution is set at 15 percent of the premium in FY 2017. Continued efforts will be made to
maintain costs. A renewed emphasis on wellness programs and evaluating data will be critical in the next few
years to help stabilize experience.
47%
25%
7%
3%
1% 7%
1%
1%
3% 2% 3%
FY 2017 Expenditure Distribution
Personal Services
Personal Benefits
Operating Expenses
Insurance & Legal
Commodities
Maintenance & Repairs
Capital Outlay
All Other Expenses
Capital Reserve Transfers
Motor Fuel Tax
Capital Improvement Plan
372
Staff will be actively working with the IPBC to manage tax implications of the Patient Protection and Affordability
Care Act. The Village’s plan will be subject to the ‘Cadillac Tax’ in FY 2018 whereby any premium expenses that
exceed the mandated threshold will be subject to a 40 percent tax.
Beginning in FY 2014, employer pensions obligations for police and firefighters are classified under Personal
Benefits instead of all other expenses and the Illinois Municipal Retirement Fund has been closed. Employer
pension costs have been assigned to each operating department budget. The intent of the change was to better
represent the true cost of providing a specific service. Employer pension obligations are anticipated to be $6.1
million in 2017 or 14.2 percent of the General Fund Budget.
INSURANCE
Within the Insurance category is the premium paid for general liability and workers’ compensation coverage. In FY
2016, staff will be evaluating a move from Intergovernmental Risk Management Pool (IRMA) for general liability
and workers’ compensation coverage to a fully uninsured stand-alone program. Half of the proposed savings has
been included in this analysis.
The deductible was raised in FY 2016 from $25,000 to $50,000 due to the recent proliferation of worker’s
compensation claims. The forecast assumes growth of 4 percent as recent claims experience will factor into the
rolling five-year claims experience modifier.
COMMODITIES
The single largest expenditure within the Commodity account group is for purchase of salt for the snow and ice
control program. The forecast calls for increases of 2.5 percent per annum. Staff continues to seek innovative
ways to reduce commodity costs, such as bulk electric procurement, and utilizing centralized purchasing to
leverage the Village’s buying power.
MAINTENANCE & REPAIR
Expenditure growth in this account group is estimated to be 2.5 percent per year. Included in these expenditures
are costs related to the maintenance and repair of sidewalks and bike paths, street patching, streetlights, building
facilities, vehicles, and parkway trees. Included in these costs are Internal Service Chargebacks for Central Garage
and Building Maintenance expenditures.
373
General Fund Transfers
Included in the transfers are $7.3 million for vehicles, technology, storm water, and building reserves over the next
five years. If the Village intends to continue with a pay-as-you-go approach to acquiring vehicles and technology
infrastructure, and repairing facilities, then these transfers must be programmed.
$4 million is allocated for transfer to the Motor Fuel Tax Fund to supplement state funding for road repairs. The
annual transfer to the Motor Fuel Tax Fund, in conjunction with state allocation, only covers about 40 percent of
the streets identified for improvement in a given year.
The Five Year Financial Forecast calls for a cumulative five-year surplus of $.1 million over the review period. The
first iteration of the five-year forecast was completed in FY 2012. Over the last five years, the forecast has moved
from a projected $7.78 million shortfall to the current $.1 million surplus. In FY 2012 reserve funding was set at $2
million over five years. This forecast calls for $7.3 million. This is a testament to cost containment decisions,
consolidating and outsourcing services, and generating new revenue through service fees and economic
development ledger. On the expenditure side, there is little ability to reduce significant operating costs that are
not wage and benefit driven. Those efforts have taken place over the last five years.
While efforts will continue to focus on how to deliver the same high level of services at lower unit costs, staff
recognizes that revenues will also need to be reviewed. Every opportunity to grow the sales tax base should
continue to be considered. Staff must ensure that revenues are reviewed for adequacy (fees), efficiency
(collections), and efficacy (diversified). New revenue sources should be researched, discussed, and if warranted,
presented to the Village Board for consideration.
This report will be used as a guide for the development of the FY 2017 Budget and will help shape the discussion
about how the Village adapts to the current and future financial landscape. Staff seeks further input from the
Village Board on the operating forecast.
374
Village of Buffalo Grove
FY 2016 – Water Fund 20 Year Pro Forma Annual Update
375
VILLAGE OF
BUFFALO GROVE
TO: Dane C. Bragg, Village Manager
FROM: Scott D. Anderson, Finance Director
DATE: July 7, 2016
RE: FY 2016 – Water Fund 20 Year Pro Forma Annual Update
System Status Update
In FY 2016 the combined Village water and sewer rate was increased by four percent. The intent of the rate is to
match the true cost of the system (operating, capital, and depreciation and reserve costs) with the consumption
fees assessed to water customers. In determining the adequacy of the rate, the Twenty-Year Water Fund
Proforma is updated to provide either a justification for the current rate or a recommendation to modify the water
rate ordinance.
A review of the audited 2014 Water Fund performance results in the following;
• The cash and investment balance is $2.6 million
• The fund generated a deficit of $1 million. The previous year was a surplus of $.1 million.
• Total gallons billed were 1.21 billion (proforma estimate – 1.31 billion).
The rate increase in the current year was $.22 moving the water rate from $5.47/1,000 gallons to $5.69/1,000
gallons.
Rate and Consumption History
The Village maintained a water and sewer rate of $1.80/1,000 gallons for a period of twenty three years (1983-
2005). One significant reason leading to this period of rate stability was due to the age of the water and sewer
infrastructure. During the peak growth decades of the 1980’s and 1990’s, developers donated approximately 53
percent of the water and sewer system assets. Through a combination of minimal capital expenses, receipt of
building and development fees, coupled with a period of growing water consumption, the Water Fund was able to
generate strong cash reserves to allow for a strategy of pay-as-you-go financing for future infrastructure repair.
Funding for future infrastructure replacement (funding depreciation) was never a component of the rate structure.
Beginning in 2003, a pattern of declining water usage started. In 2002, 1.63 billion gallons of water were billed. In
2015, 1.26 billion gallons were billed, a decrease of 22 percent. There is no expectation that the amount of water
billed will reach those levels again absent a significant drought or the addition of heavy industrial uses.
The following chart shows the annual gallons billed since 1996.
The outlier in FY 2005 was drought induced. If that year is removed from the analysis, a fairly linear decline begins
after FY 2002 and plateaus in FY 2014. Even with the decline, the Water Fund was able to cover its operating
expenses and generate a small surplus each year until 2006. A rate recommendation was made to increase the
rate by 33 percent to $2.40/1,000 gallons effective January 1, 2007. The increase stabilized the fund but did not
start building additional cash reserves for future asset replacement. A second rate increase of 25 percent to
$3.00/1,000 was implemented for 2010. Again the increase helped to ensure that water sales would offset
operating expenditures. The next increase was to $4.05/1,000 or 35 percent in FY 2013 and the most recent
increase to $5.47/1,000 or 4 percent. The new rates begin the process of developing a fully loaded water rate that
will fund operating, capital and infrastructure reserve demands.
This year, water usage is trending similar to the previous year due to an unusually mild and wet summer to date.
Factors that continue to impact water usage include weather, conservation, mature landscaping and more efficient
appliances. The Village’s philosophy on establishing an infrastructure reserve is to cash finance system
replacement over the long term.
It is estimated, in the study, that the current fiscal year will close at 1.2 billion gallons billed. The analysis uses an
estimate of 1.3 billion gallons and will carry forward through the next 20 years. Although there will be an increase
in total consumers over the next two decades, continued conservation efforts could partially counterbalance that
growth.
The Village has completed replacing all water meters in the Village. It is estimated that the more efficient and
accurate meters will generate about 3 percent for revenue. Ideally, the savings generated through more efficient
measurement will offset the cost of the capital (meters).
Water Fund Financials
During the high growth years of the water system, the Water and Sewer Fund was able to amass a cash balance
that allowed for a reserve to address infrastructure maintenance and improvement. Due to the relative age of the
system, over a fifteen year span (1993-2007) the only capital expense was $229,527 for the St. Mary’s Road water
main replacement. Since 2008, $5.1 million in infrastructure repairs and improvements has been spent. In FY 2015,
it is anticipated that another $8.8 million will be invested in system infrastructure. $6 million of the infrastructure
improvement is related the performance contracting program. Over the next year and a half, all water meters are
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
19
9
6
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
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6
20
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7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
20
1
4
20
1
5
Annual Gallons Billed
(in thousands)
377
being replaced. The revenue generated by the guaranteed efficiency rates of the new meters will be used to
service the debt for the meters.
On the attached financial analysis, staff has presented a twenty year estimate of revenues, operating expenses,
Capital expenses and Operating Transfers. Revenues include all building fees and billed amounts for water
consumption. Operating expenses are those expenses related to the day to day activities such as wholesale water
purchase, labor and materials, and energy costs. Capital expenses are those amounts spent to repair or improve
capital assets and infrastructure. Operating transfers are amounts paid to reimburse the General Fund for
expenditures related to Water Fund activities.
Working cash represents 25 percent of operating expenses. Once the working cash balance reaches the 25 percent
threshold, remaining funds are then allocated as the ‘net reserve’ that is available for capital and infrastructure
spending. At the end of FY 2016, working cash is anticipated to be $1.12 million and the net reserve is $2.9 million.
Those funds support an enterprise system valued at $.5 billion.
The following chart shows the impact of the current rate structure (with 4% inflationary increases beginning FY
2016) on the fund’s cash position.
The Water Fund remains in a precarious financial position for the next few years. Any significant unanticipated
repairs will deplete the working cash and reserve balances.
Water and Sewer System Assets
The utility system consists of 181 linear miles of water and sewer main. The value of the water main alone in
today’s dollars is approximately $200 million. The service life of the infrastructure ranges from 50 years for cast
iron main to 75 years for ductile iron. The replacement cost of the entire system (water and sewer main, lift
stations) at the end of the 20 year study, inflated at 3% per year, is $700 million. The assumption used for replacing
any future water mains is that on any given year where sections of the system have reached the end of their useful
life 25% of the system will be replaced. For instance, water main constructed in 1965 has a replacement cost of
about $372,000; we then forecast that $94,000 in repairs would occur in FY 2016. This cost estimate compensates
for the improbability that the entire section will be replaced. The estimates reflect rolling replacements where in
certain instances only sections are repaired. Another factor for consideration is that the replacement cost includes
a curb-to-curb street reconstruction. About 50 percent of that expense will be charged to the Capital Projects
Street Fund or the Motor Fuel Tax Fund.
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Cash Position
Net Reserve Working Cash
378
Within the straight line depreciation calculation beginning with the oldest main constructed in 1929, the first
replacement should have occurred in 1979. Approximately $13 million in water mains have ‘expired’ but have not
needed to be repaired. Estimating the actual asset life at times is more abstract than qualitative. Pipe that is
ensconced in stable soil and subjected to consistent water pressure may have a service life that may double an
engineering estimate, and conversely, weak soils or pressure fluctuations may reduce the life by many years.
The following chart shows the pattern of construction of water main since 1929.
During the thirteen years spanning 1983-1996, almost 50% of the water system was constructed. Fortunately
during those years, the more resilient ductile iron was used. The cost of that original installation was paid by
developers as specified within development agreements.
The age distribution of the water main leads to the cost estimates to replace the system noted in the graph
presented below:
Replacement costs begin to ramp up in the 2060s and 2070s as main installed during the peak construction years
reaches seventy years of age.
Water main is only one component of the delivery system. Other assets include the sanitary sewer main, lift
stations, and booster stations. The sanitary sewer mains have roughly the same total mileage as the water main.
The service life of the sewer mains should be significantly higher than water mains as they are not subjected to
0
20,000
40,000
60,000
80,000
19
2
9
19
5
8
19
6
0
19
6
2
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6
6
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6
8
19
7
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19
7
2
19
7
4
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6
19
7
8
19
8
0
19
8
2
19
8
4
19
8
6
19
8
8
19
9
0
19
9
2
19
9
4
19
9
6
19
9
8
20
0
0
20
0
2
20
0
4
20
0
6
20
0
8
20
1
0
Water Main Construction
in linear feet
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
20
2
0
20
3
0
20
4
0
20
5
0
20
6
0
20
7
0
20
8
0
20
9
0
Projected Infrastructure Replacement
379
pressure. Since the Village does not treat waste there are no treatment facilities to fund. For the purpose of the
pro forma, the FY 2014-2018 Capital Improvement Plan was added to the calculation. Beyond 2018, a flat amount
is budgeted each year to address sanitary sewer system and lift station repairs.
Water Rate Recommendations
Each year staff reviews the financial condition of the fund to determine the adequacy of current rates. The rate is
set by ordinance to increase in FY 2017 by 4 percent annually. There are no changes recommended with this
update.
The impact of infrastructure maintenance costs and the related strain on the water and sewer fund is not unique
to the Village of Buffalo Grove. All communities to varying degrees are challenged on how to maintain and protect
their system assets. A proper rate structure is the first step to ensuring that the fund will have the resources
available to maintain the integrity of the system.
Staff is recommending to review the tap on fees for adequacy. There is the potential for a significant amount of
development and the fees need to cover the cost of material and labor to make the connection. This will require
an independent analysis from an consulting firm.
At some point in the future, staff will present recommendations to institute a minimum usage for billing. Residents
who consume no water still should share fixed cost related to maintaining the enterprise infrastructure.
380
Village of Buffalo Grove
FY 2016 – Stormwater Fund 20 Year Pro Forma
381
VILLAGE OF
BUFFALO GROVE
TO: Dane C. Bragg, Village Manager
FROM: Mike Reynolds, Director of Public Works
DATE: August 17, 2016
RE: FY 2016 – Stormwater Fund 20 Year Pro Forma Annual Update
System Status Update
As part of the 2012 Strategic Planning process, the Village Board directed staff to investigate the feasibility of
implementing a Storm Water Utility Fee in Buffalo Grove. Presentations were made at the March 3, 2014, July 20,
2015 and September 24, 2015 Committee of the Whole meetings. The Village Board ratified staff’s
recommendation to enact a Storm Water Utility Fee on October 19, 2015 and the new fee became effective on
January 1, 2016. Additionally, there were two ordinance modifications related to the implementation of this fee.
The first is an addition chapter to Title 13 – Water and Sewers. This provides for the creation and administration of
the program. The second is an addition chapter to Title 3 – Revenue and Finance. This outlines changes related to
finance, billing and collections.
Rate and Revenue Discussion
Base Fee Calculation: Staff proposed a tiered approach based upon a base fee per parcel square footage value.
Using the impervious data provided by GIS, the base fee was determined based upon the total parcel square
footage of all parcels within the Village that contain impervious surface such as buildings, driveways and parking
lots, and the funds required to maintain and update the stormwater system. The property parcel square footage
breakdown and base fee calculation is provided below.
213,877,084.99 – Parcel Square Footage - Buffalo Grove (All Parcels Incorporated)
182,087,589.08 – Parcel Square Footage with Impervious Surface
The proposed budget target for 2016 was $1,265,876. This included both an operating budget component
($484,000) and a capital budget component ($781,501 @ 25% of the scheduled replacement value). This results in
a base fee of $0.006950 per square foot.
Tiered Fee Structure: The fee is applied to all parcels within the village that have impervious surface using a tiered
approach. The tiers are as follows:
Tier 1 - Single Family Residence Attached & Detached (fixed fee)
$0.006950 x Median Lot size (8,771.66 square footage) = Annual Fee ($60.96)
Tier 2 - Multi-Family & Commercial / Industrial / Government/Non-Profit (calculated fee)
$0.006950 x Property Square Footage = Annual Fee (varies as calculated)
It is estimated that the current fiscal year will close at $1.05 million in revenues collected. Part of this shortfall is
that we bill in arrears, so collections as of December 31 will be one month behind for commercial accounts and
two months behind for residential accounts. This will balance out in future years since this was the first year for
the fund. Other variances include re-classification of certain parcels, variances in the Lake and Cook County
382
property data bases, delinquent accounts and accounts where the correct property owner has yet to be
determined. The analysis uses a revenue estimate of $1.2 million hrough 2021 and 3% increases from 2022
through 2034.
Stormwater Fund Financials
On the attached financial analysis, staff has presented a twenty year estimate of revenues, operating expenses,
Capital expenses and Operating Transfers. Revenues include stormwater grant funding and revenue amounts for
the Stormwater fee. Operating expenses are those expenses related to the day to day activities such as labor,
equipment, materials, and energy costs associated with system operations. Capital expenses are those amounts
spent to repair or improve capital assets and infrastructure. Operating transfers are amounts received from, or
paid to the General Fund for expenditures related to Stormwater Fund activities. We have earmarked an
Operating Reserve Balance of 25% of the annual operating budget. This will provide three months of operations
should the fund suffer a catastrophic occurrence. Working cash represents the amount of revenue that exceed
expenses. At the end of FY 2016, working cash is anticipated to be $172,000. Those funds are intended to support
an enterprise system valued at $.25 billion. A summary of those expenses is provided below.
While the Stormwater Fund appears to be solid through 2022, any significant unanticipated repairs will deplete the
working cash and reserve balances. The Board should consider a rate increase beginning in 2023 and beyond.
Stormwater System Assets
The stormwater system consists of 189 linear miles of stormwater pipe, 11.3 miles of ditches, streams and creeks,
39 detention/retention basins totaling 81 acres, 1 lift station and thousands of structures. The value of the
stormwater infrastructure in today’s dollars is approximately $250 million. The service life of the infrastructure
can range from 50 years to 100 years. The replacement cost of the entire system at the end of the 20 year study,
inflated at 3% per year, is $452 million. The assumption used for future Stormwater replacements is that the
system will have an 80 year life and capital replacement would consist of 25% of the amortized value in any given
year. The chart below illustrates this concept as evaluated over the next 20 years.
-$5,000,000
-$4,000,000
-$3,000,000
-$2,000,000
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
20
1
5
20
1
6
20
1
7
20
1
8
20
1
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2
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2
2
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3
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8
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3
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3
1
20
3
2
20
3
3
20
3
4
Stormwater Utility 20-Year Pro -Forma
Beginning Cash Total Revenue Total Expenses Ending Cash
383
This cost estimate compensates for the improbability that entire sections of the system will be replaced at one
time. Estimating the actual asset life at times is more abstract than qualitative. Pipe that is ensconced in stable
soil and subjected to consistent stormwater impacts may have a service life that may double an engineering
estimate, and conversely, weak soils, capacity limitations, development, traffic or other external factors may
reduce the life by many years.
Most of the storm sewer systems were installed as part of subdivision development. The following chart shows
the pattern of subdivision construction in the Village since 1957.
For the purpose of the pro forma, the FY 2017-2021 Capital Improvement Plan was added to the calculation.
Beyond 2021, a flat amount, including 3% increases, is budgeted each year to address storm sewer system repairs.
0
2
4
6
8
10
12
14
16
18
19
5
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9
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Nu
m
b
e
r
o
f
S
u
b
d
i
v
i
s
i
o
n
s
Year
Subdivisions by Year
384
Future Program Considerations
The Public Works Department continues to refine the program and inventory the stormwater system assets. Once
the inventory is complete and the GIS system has been updated, we will have a much clearer picture of the system.
Future program modifications provides for the inclusion of curb and gutter repairs and replacement as part of the
annual street program. This would allow for more road construction annually. Additionally, staff is working with
GIS to determine what parcels outside the Village benefit from our system and if the fee could possibly be applied
to those parcels.
Stormwater Rate Recommendations
Each year staff will review the financial condition of the fund to determine the adequacy of current rates. The rate
is set by ordinance with no pre-determined increases and there are no changes recommended at this time. In the
future, as the system inventory gets solidified and other projects become clearer, a rate increase may be
appropriate. It appears that the fund will remain relatively stable until 2022. The Board should consider rate
increases beginning in 2023 and beyond.
The impact of infrastructure maintenance costs and the related challenges with the Stormwater Fund is not unique
to the Village of Buffalo Grove. All communities to varying degrees are challenged on how to maintain and protect
their system assets. A proper rate structure is the first step to ensuring that the fund will have the resources
available to maintain the integrity of the system.
385
Appendix C
Human Resources
Health Plan Benefits
Employee Staffing Levels
Health Plan Benefits
The Village offers three health insurance coverage options (2 PPOs and 1 HMO) on a self insured, pooled basis
using the BlueCross BlueShield network. The Village also offers Basic Life /AD&D through Reliance Standard and
Dental insurance coverage on a self-funded, pooled basis through MetLife.
On January 1, 2012, the Village entered the Intergovernmental Personnel Benefits Cooperative (IPBC). Established
in 1978, the IPBC is a benefits pool, created under Illinois Law and regulated by the Illinois Department of
insurance. Comprised of approximately 80 municipalities and similar units of local government, the IPBC covers
over 12,000 active employees and retiree lives. Participation in the IPBC provides the Village with great benefits,
including, but not limited to the following:
1. IPBC rate increases have historically trended lower than industry benchmarks.
2. Economies of scale are experienced from negotiating and purchasing insurance products in
intergovernmental consortiums.
3. The IPBC has expanded access to more effective cost containment options by negotiating contracts with
BlueCross BlueShield, Cigna, and United Healthcare.
4. The IPBC provided a wealth of information and support services to assist the Village in regard to the
impact of Healthcare Reform, compliance, and cost analysis.
5. IPBC provides reimbursement for a range of wellness services including our PUSH Wellness program and
annual employee flu shots.
Employee Health Care Premium Contributions
This year the employee contribution will be 15%. This medical insurance premium contribution schedule has been
adopted for all eligible Village employees, including those in bargaining units.
37
2016 versus 2017 Premium Structure ($)
2016 Monthly rates 2017 Monthly rates
PPO-A Medical
Plan
90% In-
Network /
70% Out of
network
benefit
Employee Village Total Employee Village Total
Single
employee 95.00 538.31 633.31 98.46 557.93 656.39
Single + 1
dependent 191.89 1087.40 1279.29 198.89 1127.03 1325.92
Family + 2
dependents 339.14 1921.77 2260.91 351.50 1991.82 2343.32
2016 Monthly rates 2017 Monthly Rates
PPO-B Medical
Plan
100% In-
Network /
0% Out of
network
benefit
Employee Village Total Employee Village Total
Single
employee 99.98 566.57 666.56 103.63 587.22 690.85
Single + 1
dependent 201.97 1144.48 1346.45 209.33 1186.19 1395.52
Family + 2
dependents 356.94 2022.68 2379.63 369.95 2096.41 2466.36
2016 Monthly rates 2017 Monthly rates
HMO Medical
Plan Employee Village Total Employee Village Total
Single
employee 78.43 444.45 522.89 81.67 462.78 544.45
Single + 1
dependent 158.44 977.67 1,056.25 164.97 934.83 1099.80
Family +2
dependents 280.01 1727.83 1,866.72 291.55 1652.14 1943.70
DENTAL 2016 Monthly rates 2017 Monthly rates No employee
contribution Employee Village Total
Premium Employee Village Total
Single
employee 0 $44.00 $44.00 0 $45.80 $45.80
Single + 1
dependent 0 $74.08 $74.08 0 $77.09 $77.09
Family + 2
dependents 0 $124.22 $124.22 0 $129.28 $129.28
388
Employee Staffing Levels
Office of the Village Manager/
Administration FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Communications Manager 1 0 0 0 0 0
Deputy Village Manager 1 0 1 0 1 0
Management Analyst 1 0 1 0 1 0
Administrative Assistant* 0 0 0 0 0 1
Village Manager 1 0 1 0 1 0
Total 4 0 3 0 3 1
Full & Part-Time Total 4 3 4
*Budget Request- part-time secretary.
Human Resources FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Director of Human Resources 1 0 1 0 1 0
Management Analyst 1 0 1 0 1 0
Total 2 0 2 0 2 0
Full & Part-Time Total 2 2 2
Finance & General Services FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Accountant 1 0 1 0 1 0
Deputy Clerk 0 0 .5 0 .5 0
Deputy Finance Director 1 0 1 0 1 0
Cashier 0 0 .5 0 .5 0
Clerk II 2 0 2 0 2 0
Clerk III 1 0 1 0 1 0
Director of Finance/Treasurer 1 0 1 0 1 0
Payroll Clerk III 1 0 1 0 1 0
Purchasing Manager 1 0 1 0 1 0
Administrative Assistant 0 0 0 0 0 0
Total 8 0 9 0 9 0
Full & Part-Time Total 10 9 9
389
*Additionally, two full-time Building Inspectors serve as part-time fire inspectors.
Community Development FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Administrative Assistant 2 0 2 0 2 0
Associate Planner 0 1 0 0 0 0
Building Commissioner 1 0 1 0 1 0
Building Inspector 1 0 1 0 1 0
Cashier 0 0 .5 0 .5 0
Clerk II 0 1 0 1 0 1
Community Development Director 1 0 1 0 1 0
Deputy Clerk 0 0 .5 0 .5 0
Electrical Inspector 1 0 1 0 1 0
Health Inspector 1 0 1 0 1 0
Planner 1 0 1 0 1 0
Plan Reviewer 1 0 1 0 1 0
Plumbing Inspector 1 0 1 0 1 0
Property Maintenance Inspector 1 0 1 0 1 0
Total 11 2 12 1 12 1
Full & Part-Time Total 13 13 13
Fire Services FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Battalion Chief 4 0 4 0 4 0
Deputy Fire Chief 1 0 1 0 1 0
EMA Coordinator 0 1 0 1 0 1
Fire Chief 1 0 1 0 1 0
Fire Inspector* 1 0 1 0 1 0
Fire Inspector/Public Education
Officer 0 1 0 1 0 1
Fire Lieutenant 9 0 9 0 9 0
Firefighter/Paramedic 42 0 42 0 42 0
Secretary 1 0 1 0 1 0
Total 59 2 59 2 59 2
Full & Part-Time Total 61 61 61
390
Police Services FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Chief of Police 1 0 1 0 1 0
Clerk 2 1 2 1 2 1
Community Service Officer*** 3 0 2 0 2 0
Crossing Guard 0 9 0 9 0 9
Deputy Police Chief 1 0 2 0 2 0
Desk Officer** 2 3 3 2 3 2
Evidence Custodian 0 1 0 1 1 0
Lieutenant 3 0 4 0 4 0
Patrol Officer 48 0 47 0 46 0
Police Commander 3 0 2 0 2 0
Police Sergeant 8 0 8 0 8 0
Records Supervisor 1 0 1 0 1 0
Social Worker* 0 0 0 1 1 0
Technical Services Administrator 1 0 1 0 1 0
Administrative Assistant 1 0 1 0 1 0
Total 74 14 75 13 75 12
Full & Part-Time Total 88 88 87
*Social Worker Not Included in 2016 Budget
**1 Desk Officer moved to full-time in 2016.
***PT CSO Left Open
Golf Operations FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Head Golf Professional 2 0 2 0 2 0
Assistant Golf Professional 1 2 1 2 1 2
Golf Course Attendants- Seasonal 0 15 0 30 0 30
Golf Course Cashier- Seasonal 0 9 0 0 0 0
Golf Maintenance worker I 0 0 0 0 0 0
Golf Course Maintenance Worker-
Seasonal 0 14 0 0 0 0
Golf course maintenance worker II 1 0 0 0 0 0
Golf course maintenance worker III 1 0 0 0 0 0
Golf Course starter/ranger- seasonal 0 11 0 0 0 0
Golf Course Superintendent 1 0 0 0 0 0
Horticulturalist 1 0 0 0 0 0
Total 7 51 3 32 3 32
Full & Part-Time Total 58 35 35
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Public Works/Engineering FY 2015 FY 2016 FY 2017
FT PT FT PT FT PT
Automotive Mechanic II 3 0 3 0 1 0
Automotive Mechanic III 1 0 1 0 3 0
Automotive Shop Assistant 0 1 0 1 0 1
Building Maintenance Supervisor 1 0 0 0 0 0
-Building Maintenance Manager 0 0 1 0 1 0
Building Maintenance Worker 2 0 2 0 2 0
Building Maintenance Worker II – CL 1 0 1 0 1 0
Civil Engineer I 1 0 1 0 0 0
Civil Engineer II 1 0 1 0 2 0
Deputy Director of Public Works 1 0 1 0 1 0
Director of Public Works 1 0 1 0 1 0
Engineering Aide 0 1 0 1 0 1
Engineering Technician 1 0 1 0 1 0
Fleet Manager 1 0 1 0 1 0
Forestry and Grounds Supervisor 1 0 0 0 0 0
Forestry & Grounds Manager 0 0 1 0 1 0
Laborer – Seasonal 0 6 0 6 0 6
Maintenance Worker I 8 0 6 0 7 0
Maintenance Worker II 13 0 14 0 14 0
Maintenance Worker II – CL 6 0 6 0 5 0
-Superintendent of Maintenance 1 0 1 0 1 0
Seasonal Snow Plow Driver 0 1 0 1 0 1
Administrative Assistant 2 1 2 1 2 1
Sewer & Drainage Manager 1 0 1 0 1 0
Streets Manager 1 0 1 0 1 0
Superintendent of Utilities 1 0 1 0 1 0
Village Engineer 1 0 1 0 1 0
Water Manager 1 0 1 0 1 0
Total 50 10 49 10 49 10
Full & Part-Time Total 60 59 59
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Appendix D
Document Definitions
Glossary
Acronyms
Glossary
The Annual Budget contains terminology unique to public finance and budgeting. This glossary was prepared to
assist the reader of this document in the understanding of some of these terms.
Abatement:
A partial or complete cancellation of a levy imposed by the Village. Abatements usually apply to tax, levies special
assessments, and service charges.
Ad Valorem Tax:
A direct tax based “according to value” of property.
Advanced Refunding Bonds:
Bonds issued to refund an outstanding bond issue prior to the date which the outstanding bonds become due or
callable. Proceeds of the advanced refunding bonds are deposited in escrow with a fiduciary, invested in United
States Treasury Bonds or other authorized securities, and used to redeem the underlying bonds at maturity or call
date.
Agencies:
Informal name that refers to securities issued by the United States government and U.S. government sponsored
instrumentalities.
Agency Fund:
A fund normally used to account for assets held by a government as an agent for individuals, private organizations
or other governments and/or other funds.
Amortization:
The process of paying the principal amount of an issue of bonds by periodic payments either directly to
bondholders or to a sinking fund for the benefit of bondholders.
Appropriation:
A legal authorization granted by the Village Board to make expenditures and to incur obligations for specific
purposes. An appropriation usually is limited in amount and time it may be expended.
Arbitrage Bonds:
Bonds which are deemed by the I.R.S. to violate federal arbitrage regulations. The interest on such bonds becomes
taxable and the bondholders must include this interest as part of gross income for federal income tax purposes
(I.R.S. Reg. 1.103-13 through 1.103-15).
Asked:
The trading price proposed by the prospective seller of securities. Also called the offer or offered price.
Assessed Valuation:
A value that is established for real or personal property and used as a basis for levying property taxes. (Note:
property values are established by the Township Assessor.)
Assessed Value:
An annual determination of the just or fair market value of property for purposes of ad valorem taxation.
395
Assets:
Property including cash on hand, facilities, and equipment owned by a government.
Audit:
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation.
Balance Sheet:
That portion of the Village's financial statement that discloses the assets, liabilities, reserves, and balances of a
specific governmental fund as of a specific date.
Bankers' Acceptance (BA):
A short-term financial instrument that is the unconditional obligation of the accepting bank.
Basis of Accounting:
A term used when revenues, expenditures, expenses, transfers, assets and liabilities are recognized in the accounts
and reported in the financial statements. Specifically, it relates to the timing of the measurements made,
regardless of the nature of the measurement, on the cash, modified accrual, or the accrual method.
Basis Point:
1/100 of one percent.
Bid:
The trading price acceptable to a prospective buyer of securities.
Bond:
A written promise to pay a sum of money on a specific date at a specified interest rate. The interest payments and
the repayment of the principal are detailed in a bond ordinance. The most common types of bonds are general
obligation and revenue bonds. These are most frequently used for the financing of capital improvements.
Bond Anticipation Notes (BANS):
Short-term interest bearing notes issued by a government in anticipation of bonds to be issued at a later date. The
notes are retired from proceeds of the bond issue to which they are related.
Bond Counsel:
An attorney retained by the Village to render a legal opinion whether the Village is authorized to issue the
proposed bonds, has met all legal requirements necessary for issuance, and whether interest on the bonds is, or is
not, exempt from federal and state income taxation.
Bonded Debt:
The portion of an issuers total indebtedness represented by outstanding bonds.
Bond Equivalent Yield (BEY):
An annual yield, expressed as a percentage, describing the return provided to bond holders. The BEY is a way to
compare yields available from discount securities such as Treasury bills and BAs with yields available from coupon
securities.
Broker:
A party who brings buyers and sellers together. Brokers do not take ownership of the property being traded. They
are compensated by commissions. They are not the same as dealers; however, the same individuals and firms that
act as brokers in some transactions may act as dealers in other transactions.
Brokered and Negotiable Certificates of Deposit:
Short-term (2 to 52 weeks) large denomination ($100,000 minimum). Certificate of Deposit that is issued at a
discount on its par value, or at a fixed interest rate payable at maturity and are freely traded in secondary markets
Budget:
A plan of Village financial operations, which includes an estimate of proposed expenditures and a proposed means
of financing them. The term used without any modifier usually indicates a financial plan for a single operating
year. The budget is the primary means by which the expenditure and service levels of the Village are controlled.
Budget Act:
The Budget Act allows the municipality to adopt a single document that serves as the annual budget and the
appropriation ordinance.
Budget Message:
The opening section of the budget, which provides the Village Board and the public with a general summary of the
most important aspects of the budget, changes from the current and previous fiscal years, and the v iews and
recommendations of the Village Manager.
Callable Bond:
A bond which permits or requires the issuer to redeem the obligation before the state maturity date at a specified
price, the call price, usually at or above par value.
Capital Appreciation Bonds (CAB):
A long-term security on which the investment return is reinvested at a state compound rate until maturity. The
investor receives a single payment at maturity representing both the principal and investment return.
Cash Management:
The management of cash necessary to pay for government services while investing temporary cash excesses in
order to earn interest revenue. Cash management refers to the activities of forecasting the inflows and outflows
of cash, mobilizing cash to improve its availability for investment, establishing and maintaining banking
relationships, and investing funds in order to achieve the balance of the highest interest and return, liquidity and
minimal risk with these temporary cash balances.
Certificate of Deposit:
A negotiable or non-negotiable receipt for monies deposited in a bank of financial institution for a specified period
for a specified rate of interest.
Charges for Service:
User charges for services provided by the Village to those specifically benefiting from those services.
Collateral:
Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also
refers to securities pledged by a bank to secure deposits of public monies.
Commercial Paper:
Very short-term, unsecured promissory notes issued in either registered or bearer form, and usually backed by a
line of credit with a bank.
Comprehensive Annual Financial Report (CAFR):
The official annual report for the Village of Buffalo Grove. It includes five combined statements and basic financial
statements for each individual fund and account group prepared in conformity with GAAP. It also includes
supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions,
extensive introductory material, and a detailed Statistical Section.
Coupon Rate:
The annual rate of interest payable on a coupon bond (a bearer bond or bond registered as to principal only,
carrying coupons evidencing future interest payments), expressed as a percentage of the principal amount.
Dealer:
A firm or individual who buys and sells for their own account. Dealers have ownership between a purchase from
one party and a sale to another party. Dealers are compensated by the spread between the price they pay and the
price they receive.
Debenture:
A bond secured only by the general credit of the issuer.
Debt:
A financial obligation resulting from the borrowing of money. Debts of government include bonds, notes, lines of
credit, and land contracts.
Debt Limit:
The maximum amount of debt which an issuer is permitted to incur under constitutional, statutory or charter
provision.
Debt Service:
The amount of money necessary to pay interest on an outstanding debt, the serial maturities of principal for serial
bonds, and the required contributions to an amortization or sinking fund for term bonds.
Deficit:
The excess of expenditures or expenses over revenues or income during a single accounting period.
Delivery Versus Payment:
The simultaneous exchange of securities and cash. The safest method of settling either the purchase or sale of a
security. In a DVP settlement, the funds are wired from the buyer's account and the security is delivered from the
seller's account in simultaneous independent wires.
Demand Notes (Variable Rate):
A short-term security which is subject to a frequently available put option feature under which the holder may put
the security back to the issuer after giving specified notice. Many of these securities are floating or variable rate,
with the put option exercisable on dates on which the floating rate changes.
Department:
A major administrative division of the Village, which indicates overall management responsibility for an operation.
Depreciation:
The allocation of the cost of a fixed asset over the asset’s useful life. Through this process, the entire cost of this
asset less any salvage value is ultimately charged off as an expense. This method of cost allocation is used in
proprietary funds.
Discount:
The amount by which the price for a security is less than its par.
Discount Securities:
Securities that do not pay periodic interest. Investors earn the difference between the discount issue price and the
full face value paid at maturity. Treasury bills, bankers’ acceptances and zero coupon bonds are discount securities.
Distinguished Budget Award Program:
Award program that recognizes exemplary budget documentation as prescribed by the Government Finance
Officers Association. Budgets are reviewed using a comprehensive checklist and those judged proficient receive
the award.
Diversification:
Dividing investment funds among a variety of securities offering independent returns.
Double Barreled Bonds (Alternative Revenue Bonds):
A bond which is payable from the revenues of a governmental enterprise and are also backed by the full faith and
credit of the governmental unit.
Enterprise Fund:
A fund established to account for operations (a) that are financed and operated in a manner similar to private
business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation)
of providing goods or services to the general public on a continuing basis be financed or recovered primarily
through user charges; or (b) where the governing body has 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 purposes.
Expenditures:
Decreases in net financial resources. Expenditures include current operating expenses requiring the present or
future use of net current assets, debt service and capital outlays, and intergovernmental transfers.
Expenses:
Charges incurred, whether paid or unpaid, resulting from the delivery of Village services.
Federal Credit Agencies:
Agencies of the Federal Government set up to supply credit to various classes of institutions and individuals, e.g., S
& L's, small business firms, students, farmers, farm cooperatives, and exporters.
Federal Deposit of Insurance Corporation (FDIC):
A federal agency that insures bank deposits, currently up to $100,000 per deposit.
Federal Funds Rate:
The rate for which overnight federal funds are traded.
Federal Home Loan Banks (FHLB):
The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role
analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.
Federal National Mortgage Association (FNMA or FANNIE MAE):
FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development,
HUD. It is the largest single provider of residential mortgage funds in t he United States. Fannie Mae, as the
corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of
adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA assumes and guarantees that all
security holders will receive timely payment of principal and interest.
Federal Open Market Committee (FOMC):
Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents.
The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a
rotation basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales
of Government Securities in the open market as a means of influencing the volume of bank credit and money.
Federal Reserve System:
The central bank of the United States created by Congress and consisting of a seven member Board of Governors
in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.
Fiscal Policy:
The Village's policies with respect to revenues, spending, and debt management as these relate to government
services, programs, and capital investment. Fiscal policy provides an agreed upon set of principles for the planning
and programming of government budgets and their funding.
Fiscal Year:
A 12-month period to which the Village's annual operating budget applies and at the end to which the Village
determines its financial position and the results of its operation. The Village has specified January 1 to December
31 as its fiscal year.
Fixed Assets:
Assets of a long-term character which are intended to continue to be held or used. Examples of fixed assets
include items such as land, buildings, machinery, furniture, and other equipment.
Fund:
An accounting entity with a self-balancing set of accounts, which are segregated for the purpose of carrying on
specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
Fund Balance:
The fund equity of governmental funds. Changes in fund balances are the result of the difference of revenues to
expenditures. Fund balances increase when revenues exceed expenditures and decrease when expenditures
exceed revenues.
Generally Accepted Accounting Principles (GAAP):
Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and
content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures
necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of
general application, but also detailed practices and procedures. GAAP provides a standard by which to measure
financial presentations. The primary authoritative body on the application of GAAP to state and local governments
is the Governmental Accounting Standards Board (GASB).
General Obligation Bonds:
Bonds that finance a variety of public projects such as streets, buildings, and improvements; the repayment of
these bonds is usually made from the Debt Service Fund, and these bonds are backed by the full faith and credit of
the issuing government.
GIS Consortium (GISC):
The Consortium gives the Village access to staffing and development tools through a cooperative, regional
consortium. Specifically GISC is a group of local communities working together to develop geographic information
systems (GIS) solutions. These local governments have broad backgrounds in GIS-related technologies and share a
common objective—to achieve the full benefits of GIS by maximizing value while reducing cost and risk. The GIS
Consortium was established with the goal of investigating existing approaches to GIS in local government and
integrating best practices into a unified model.
Governmental Fund Types:
Funds used to account for the acquisition, use and balances of expendable financial resources and the related
current liabilities, except those accounted for in proprietary and trust funds. In essence, these funds are an
accounting segregation of financial resources. Expendable assets are assigned to a particular governmental fund
type according to the purposes for which they may or must be used. Current liabilities are assigned to the fund
type from which they are to be paid. The difference between the assets and the liabilities of governmental fund
types is referred to as fund balance. The measurement focus in this fund type is on the determination of financial
position and changes in financial position (sources, uses and balances of financial resources), rather than on net
income determination. The statement of revenues, expenditures, and changes in fund balance is the primary
governmental fund type operating statement. It may be supported or supplemented by more detailed schedules
of revenues, expenditures, transfers and other changes in fund balance. Under current GAAP, there are four
governmental fund types: general, special revenue, debt service and capital projects.
Governmental National Mortgage Association (GNMA OR GINNIE MAE):
GNMA, like FNMA, was chartered under the Federal National Mortgage Association Act of 1938. Securities
guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations and other
institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are
backed by FHA, VA or FMHM mortgages. The term pass-throughs is often used to describe Ginnie Maes.
Income:
A term used in proprietary fund type accounting to represent (1) revenues, or (2) the excess of revenues over
expenses.
Intergovernmental Revenue:
Funds received from federal, state, and other local government sources in the form of grants, shared revenues,
and payments in lieu of taxes.
Internal Service Fund:
A fund that is comprised of one or more departments that provides services to other departments within the
governmental unit or amongst multiple governmental units. These services are funded through expenditures in
the departments that utilize the services provided and recorded as revenue in the internal service fund created.
Investment Policy:
The Budget Act allows the municipality to adopt a single document that serves as the annua l budget and the
appropriation ordinance.
Lease Purchase Agreement (Capital Lease):
A contractual agreement whereby the government borrows funds from a financial institution or a vendor to pay
for capital acquisition. The title to the asset(s) normally belongs to the government with the lessor acquiring
security interest or appropriate lien therein.
Letter of Credit:
A commitment, usually made by a commercial bank, to honor demands for payment of a debt upon compliance
with conditions and/or the occurrence of certain events specified under the terms of the commitment.
Level Debt Service:
An arrangement of serial maturities in which the amount of principal maturing increases at approximately the
same rate as the amount of interest declines.
Levy:
(Verb) to impose taxes, special assessments, or service charges for the support of governmental activities. (Noun)
The total amount of taxes, special assessments, or service charges imposed by the Village.
Liability:
Debt or other legal obligations arising out of transactions in the past, which must be liquidated, renewed or
refunded at some future date.
Liquidity:
A liquid asset is one that can be readily converted to cash through sale in an active secondary market.
Local Government Investment Pool (LGIP): Pools through which governmental entities may invest short term cash.
Examples of LGIP's are the Illinois Funds, administered by the Illinois State Treasurer and the Illinois Metropolitan
Investment Fund.
Long-Term Debt:
Long-term debt is defined, for purposes of this policy, as any debt incurred whose final maturity is more than three
years.
Maturity:
The date upon which the principal of a municipal bond becomes due and payable to bondholders.
Market Value::
The price at which a security could presumably be purchased or sold.
Mark to Market:
The process of restating the carrying value of an asset or liability to equal its current market value.
Master Repurchase Agreement:
A written contract covering all future transactions between parties. The agreement establishes each party’s right in
the transaction. Repurchase Agreements (REPO’s) are a form of short-term borrowing for dealers in government
securities. The dealer sells the government securities to investors, usually on an overnight basis, and then buys
them back the following day. For the party selling the security (and agreeing to repurchase it in the future), it is a
repo; for the party on the other end of the transaction (buying the security and agreeing to sell in the future), it is a
reverse repurchase agreement. A master agreement will often specify, among other things, the right to liquidate
the underlying securities in the event of default.
Mini-bonds:
A small denomination bond directly marketed to the public.
Modified Accrual Basis:
The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues
and other financial resource increments (e.g., bond issue proceeds) are recognized when they become susceptible
to accrual; that is when they become both "measurable" and "available" to financial expenditures of the current
period: "Available” means collectible in the current period or soon enough thereafter to be used to pay liabilities of
the current period. Expenditures are recognized when the fund liability is incurred except for (1) inventories of
materials and supplies that may be considered expenditures either when purchased or when used, and (2) prepaid
insurance and similar items that may be considered expenditures either when paid for or when consumed. All
governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis
of accounting.
Net Income:
Proprietary fund excess of operating revenues, non-operating revenues, and operating transfers over operating
expenses, non-operating expenses, and operating transfers out.
Net Interest Cost (NIC) - The traditional method of calculating bids for new issues of municipal securities. The total
dollar amount of interest over the life of the bonds is adjusted by the amount of premium or discount bid, and
then reduced to an average annual rate. The other method is known as the true interest cost (see "true interest
cost").
Offer to Offered Price:
The trading price proposed by the prospective seller of securities (also called the asked or asking price).
Offering Circular:
Usually a preliminary and final document prepared to describe or disclose to investors and dealers information
about an issue of securities expected to be offered in the primary market. As a part of the offering circular, an
official statement shall be prepared by the Village describing the debt and other pertinent financial and
demographic data used to market the bonds to potential buyers.
Open Market Operations:
Purchases and sales of government and c ertain other securities in the open market by the New York Federal
Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy.
Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite
effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
Other Contractual Debt:
Purchase contracts and other contractual debt other than bonds and notes. Other contractual debt does not affect
annual debt limitation and is not a part of indebtedness within the meaning of any constitution or statutory debt
limitation or restriction.
Par Value or Face Amount:
In the case of bonds, the amount of principal which must be paid at maturity.
Parity Bonds:
Two or more issues of bonds which have the same priority of claim or lien against pledged revenues or the issuer's
full faith and credit pledge.
Performance Contracting:
Performance Contracting allows the village to combine project planning with other governmental units to combine
purchasing power to share fixed costs of a project and pay each participants own share of actual costs. Each
participant shares the risks and rewards of the project.
Principal:
The face amount or par value of a bond or issue of bonds payable on stated dates of maturity.
Private Activity Bonds:
One of two categories of bonds established under the Tax Reform Act of 1986, both of whom are subject to certain
tests and State volume caps to preserve tax exemption.
Portfolio:
Collection of financial assets belonging to a single owner.
Premium:
The amount by which the price for a security is greater than its par amount.
Primary Dealer:
A group of government securities dealers that submit daily reports of market activity and positions and monthly
financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary
dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few
unrelated firms.
Property Tax:
Taxes levied on real property according to the property's valuation and the tax rate.
Proprietary Fund Types:
The classification used to account for a Village's ongoing organizations and activities that are similar to those often
found in the private sector (i.e., enterprise and internal service funds). All assets, liabilities, equities, revenues,
expenses and transfers relating to the government's business and quasi-business activities are accounted for
through proprietary funds. The GAAP used are generally those applicable to similar businesses in the private
sector and the measurement focus is on determination of net income, financial position and changes in financial
position. However, where the GASB has issued pronouncements applicable to those entities and activities, they
should be guided by these pronouncements.
Prudent Person Rule:
An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only
in a list of securities selected by the state - the so-called legal list. In other states the trustee may invest in a
security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a
reasonable income and preservation of capital.
Qualified Public Depositories:
A financial institution which does not claim exemption from the payment of any sales or compensating use or ad
valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible
collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit
Protection Commission to hold public deposits.
Rate of Return:
The yield obtainable on a security based on its purchase price or its current market price. This may be the
amortized yield to maturity on a bond or the current income return.
Ratings:
Evaluations of the credit quality of notes and bonds, usually made by independent rating services, which generally
measure the probability of the timely repayment of principal and interest on municipal bonds.
Refunding Bonds:
Bonds issued to retire bonds already outstanding.
Registered Bond:
A bond listed with the registrar as to ownership, which cannot be sold or exchanged without a change of
registration.
Reinvestment Risk:
The risk that all or part of the principal may be received when interest rates are lower than when the security was
originally purchased, so that the principal must be reinvested at a lower rate than the rate originally received by
the investor.
Repurchase Agreement (RP OR REPO):
See Master Repurchase Agreement.
Reserve Fund:
A fund which may be used to pay debt service if the sources of the pledged revenues do not generate sufficient
funds to satisfy the debt service requirements.
Retained Earnings:
An equity account reflecting the accumulated earnings of the Village's Proprietary Funds.
Revenue:
Funds that the government receives as income. It includes such items as tax receipts, fees from specific services,
receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income.
Safekeeping:
A service rendered by banks whereby securities and valuables of all types and descriptions are held by the bank.
SEC RULE 15C3-1: See uniform net capital rule.
Secondary Market:
Markets for the purchase and sale of any previously issued financial instrument.
Securities and Exchange Commission (SEC):
The federal agency with responsibility for regulating financial exchanges for cash instruments.
Self-Supporting or Self Liquidating Debt:
Debt that is to be repaid from proceeds derived exclusively from the enterprise activity for which the debt was
issued.
Short-Term Debt:
Short-term debt is defined for purposes of this policy as any debt incurred whose final maturity is three years or
less.
Spread:
The income earned by the underwriting syndicate as a result of differences in the price paid to the issuer for a new
issue of municipal bonds, and the prices at which the bonds are sold to the investing public, usually expressed in
points or fractions thereof.
Surplus:
Surplus is more than or in excess of what is needed or required
Tax Increment District:
A legal entity created by local resolution to promote improvements, jobs, etc. The taxes generated from the
assessed value "increment" above the base year is used to finance the costs of the improvements, which generate
the increased assessed valuation.
Tax-Exempt Bonds:
For municipal bonds issued by the Village tax-exempt means interest on the bonds are not included in gross
income for federal income tax purposes; the bonds are not items of tax preference for purposes of the federal,
alternative minimum income tax imposed on individuals and corporations; and the bonds are exempt from
taxation by the State of Illinois.
Tax Increment Bonds:
Bonds secured by the incremental property tax revenues generated from a redevelopment project area.
Tax Levy:
The total amount to be raised by general property taxes for operating and debt service purposes.
Tax Rate:
The amount of tax levied for each $100 of assessed valuation.
Tax Year:
Tax year pertains to the fiscal year in which the taxes are assessed and collected, but not distributed.
Term Bonds:
Bonds coming due in a single maturity.
Treasury Bills (T-BILLS):
Short-term obligations issued by the U.S. Treasury for maturities of one year or less. They do not pay interest but
are issued on a discount basis instead.
TREASURY BONDS (T-BONDS): Long-term obligations issued by the U.S. Treasury with initial maturities of more
than ten years.
Treasury Notes (T-NOTES):
Medium-term obligations issued by the U.S. Treasury with initial maturities of from one to ten years.
True Interest Cost (TIC):
Also known as Canadian Interest Cost. A rate which, when used to discount each amount of debt service payable in
a bond issue, will produce a present value precisely equal to the amount of money received by the issuer in
exchange for the bonds. The TIC method considers the time value of money while the net interest cost (NIC)
method does not.
Trust Funds:
Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations,
other governments, and/or other funds.
Uniform Net Capital Rule:
Securities and Exchange Commission requirement that member firms as well as non-member broker dealers in
securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net
capital ratio. Indebtedness covers all money owed to a firm including margin loans and commitments to purchase
securities, one reason new public issues are spread among members of underwriting syndicate. Liquid capital
includes cash and assets easily converted to cash.
Yield:
Loosely refers to the annual return on an investment expressed as a percentage on an annual basis. For interest-
bearing securities, the yield is a function of the rate, the purchase price, the income that can be earned from the
reinvestment of income received prior to maturity, call or sale. Different formulas or methods are used to calculate
yields.
Yield to Maturity:
The rate of return to the investor earned from payments of principal and interest, with interest compounded
semiannually and assuming that interest paid is reinvested at the same rate.
Zero Coupon Bond:
A bond which pays no interest, but is issued at a deep discount from par, appreciating to its full value at maturity.
Acronyms
CAD: Computer Aided Dispatch
CAFT: Combined Area Fire Traing
CIF: Capital Improvement Fund
CIP: Capital Improvement Plan
EAB: Emerald Ash Borer
EAV: Equalized Assessed Valuation
EMA: Emergency Management Agency
FLSA: Fair Labor Standards Act
GAAP: Generally Accepted Accounting Principals
GFOA: Government Finance Officers Association
GovITC: Government Information Technology Consortium
HVAC: Heating, Ventilation Air Conditioning
IEPA: Illinois Environmental Protection Agency
IMF: Infrastructure Maintenance Fee
IMRF: Illinois Municipal Retirement Fund
IRMA: Intergovernmental Risk Management Agency
MCSC3: Mobile Comm Support Center 3
MDC: Mobile Data Computer
MFT: Motor Fuel Tax
NWCDS: Northwest Central Dispatch System
NWWC: Northwest Water Commission
OTSW: Opportunities, Threats, Strengths, and Weaknesses
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SOP: Standard Operating Procedure
SWANCC: Solid Waste Agency of Northern Cook County
TERF: Technology Equipment and Replacement Fund
TIF: Tax Increment Financing
VSI: Voluntary Separation Incentive
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