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HomeMy WebLinkAbout2016 BudgetAdopted Budget Village of Buffalo Grove Adopted Budget: January 1, 2016 to December 31, 2016 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: Matthew Jacobsen Table of Contents Section 1 Transmittal Letter Dane C. Bragg, Village Manager ................................................................................................................. 1 Section 2: Organization and Services List of Principal Officials ............................................................................................................................ 15 Organizational Chart ................................................................................................................................. 17 Village Commissions, Committees & Boards ............................................................................................ 18 Village Overview ....................................................................................................................................... 19 Section 3: Budget Process and Structure Budget Process ......................................................................................................................................... 31 Budget Timeline ........................................................................................................................................ 32 Budget Sections ........................................................................................................................................ 33 Basis of Budgeting .................................................................................................................................... 34 Annual Budget vs. Financial Statement .................................................................................................... 34 Fund Structure .......................................................................................................................................... 34 Financial Policies and Goals ...................................................................................................................... 35 Account Numbers ..................................................................................................................................... 36 Current Village Funds ............................................................................................................................... 38 Section 4: Executive Overview Budget in Brief .......................................................................................................................................... 43 Strategic Planning ..................................................................................................................................... 53 Revenue Trends and Projections .............................................................................................................. 68 Expenditures Trends and Projections ....................................................................................................... 78 Debt Position ............................................................................................................................................ 82 Debt Service Schedules............................................................................................................................. 84 Fund Balance Projections by Fund............................................................................................................ 87 Section 5: General Fund Summary and Detail General Fund Revenue ............................................................................................................................. 91 Office of the Village Manager ................................................................................................................... 96 Legislative Legal Services Finance Department ............................................................................................................................... 107 Human Resources ................................................................................................................................... 115 Fire Department/EMA ............................................................................................................................ 123 Police Department .................................................................................................................................. 132 Community Development Department .................................................................................................. 141 Public Works Management & Administration ........................................................................................ 149 Engineering Services Building Services/Street Lighting Street Operations and Maintenance Forestry/Parkway/Landscape Maintenance Central Garage Drainage System Non-Operating Transfer ......................................................................................................................... 173 Section 6: Capital Improvement Plan Capital Improvement Request Summary ............................................................................................... 179 Capital Projects Budgeted by Fund ......................................................................................................... 183 Summary Sheet ...................................................................................................................................... 185 Detailed Project Sheets .......................................................................................................................... 187 Reserve for Capital Replacement - Vehicles ........................................................................................... 219 Motor Fuel Tax Fund .............................................................................................................................. 221 Capital Projects – Facilities Fund ............................................................................................................ 224 Capital Projects – Streets Fund ............................................................................................................... 226 Section 7: Enterprise Funds Golf Course Funds................................................................................................................................... 231 Water & Sewer Operating ...................................................................................................................... 247 Refuse Fund ............................................................................................................................................ 262 Section 8: Internal Service Funds Information Technology Fund ................................................................................................................ 268 Central Garage Fund .............................................................................................................................. 273 Building and Facility Maintenance Fund ................................................................................................ 280 Section 9: Fiduciary Funds Police Pension ......................................................................................................................................... 289 Fire Pension ............................................................................................................................................ 293 Section 10: Other Funds Parking Lot Fund ..................................................................................................................................... 299 Debt Service Fund ................................................................................................................................... 304 Appendix A: Comprehensive Fee & Tax Schedule Administrative Fees ................................................................................................................................ 309 Building & Development/Health Fees .................................................................................................... 313 Planning & Zoning Fees .......................................................................................................................... 318 Police Department Fees ......................................................................................................................... 319 Fire Department Fees ............................................................................................................................. 319 Engineering Fees ..................................................................................................................................... 321 Water Connection Fees .......................................................................................................................... 321 Business Taxes, Licenses and Regulations .............................................................................................. 321 Taxes Schedule ....................................................................................................................................... 323 Appendix B: Financial Policies & Projections Fund Balance Policy ................................................................................................................................ 327 Purchasing Policy .................................................................................................................................... 327 Investment Policy ................................................................................................................................... 333 Debt Policy .............................................................................................................................................. 335 Fixed Asset and Capital Equipment Capitalization Policy ....................................................................... 338 Five Year Operating Forecast .................................................................................................................. 341 Twenty-Year Water & Sewer Utility Forecast ......................................................................................... 358 Appendix C: Human Resources Health Plan Benefits ............................................................................................................................... 365 Employee Staffing Levels ........................................................................................................................ 367 Appendix D: Document Definitions Glossary .................................................................................................................................................. 374 Acronyms ................................................................................................................................................ 380 Section 1 Transmittal Letter Dane C. Bragg, Village Manager VILLAGE OF BUFFALO GROVE MANAGEMENT’S LETTER TO THE CORPORATE AUTHORITIES OF THE VILLAGE OF BUFFALO GROVE, ILLINOIS November 2, 2015 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, 2016. 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 2016, 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 additiona l dollars to long-term capital improvements to aging infrastructure and facilities. Over the past five years, the leadership team has worked cooperatively to clear significant financial hurdles, while repositioning the balance sheet with an eye toward sus tainability. To that end, several organizational and alternate service delivery models were adopted, the procurement process was restructured, new reserves were established for asset management and replacement, and programs were modified to meet long-term budget targets. While several targets are still in process, the Village has been able to effectively navigate choppy economic waters and re -establish sustainable trend lines for many long- term needs. Village staff members have worked diligently to provide for a nominal-growth ad valorem tax rate for the forthcoming year and appropriate resources allocated for public safety, infrastructure and general services. There are no material service or program changes proposed for 2016. STRATEGIC PLANNING AND MANAGEMENT Many of the Village’s efforts leading up to the preparation of the 2016 budget center on the strategic management goals adopted by the Village Board in 2012. As the organization enters its fourth full year of the adopted Strategic Plan , the Village Board is currently reviewing the plan’s progress to date and will soon consider amendments to the plan to better reflect actual conditions in achieving desired outcomes. 1 Within the 2016 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 2016 work plan. The Village will continue many of its now longstanding initiatives in 2016. 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 clearing backlogged 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 2016-2020 and the 20-Year Water and Sewer Pro-Forma. The 2016 projections were previously presented to the Village Board on August 17, 2015, a copy of each is included in Appendix B. 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 have to remain steadfast in pursuing strategies that provide for continued revenue growth and cost reductions, in order to adequately fund future costs associated with retirement and healthcare benefits. GENERAL OPERATIONS The Village’s 2016 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. Within the area of general operations, staffing levels are projected to remain nearly constant. Subsequent to the Village’s decision to outsource the golf course maintenance operations in 2015, projected total personnel will decrease from 294 to 269 for the year, with full-time personnel expected to 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 decrease from 216 to 208 and part-time staff reduced from 78 to 61, year over year. Over the past five years, total staffing Village -wide has decreased more than 21 percent through attrition and alternate service delivery models, from a peak of 327 in 2010. Staff will complete the implementation of the electronic work order and asset management system (Cartegraph) for Public Works to enhance efficiency and improve access to data in the field, as well as continued improvements to IT assets including fiber connections to and from Village sites. Further work is planned to improve supervisory control and data acquisition (SCADA) and telemetry system components for water system management purposes. The golf operation has stabilized in the post-recession economy, with 2014 fee revenue totaling $2,245,605. This revenue remains less than the pre -recession peak by approximately 3.2 percent, or $80,000 annually. The post-recession trend 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. For 2016, operating transfers totaling $301,939 are projected for the two courses, a decrease of $44,377, of 14.7 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 2016, internal service chargebacks have been reallocated based on actual experience, which shows as a net decrease in charges for operating departments and divisions. General Fund Revenues FY 2016 General Fund revenue is expected to increase $1,880,307 over 2015 estimated actual, primarily due to the scheduled implementation of a stormwater utility fee ($1,200,000) for drainage facility maintenance/ replacement in January 2016. Total General Fund revenue is estimated at $41,714,743. For existing revenue sources , state and home rule sales tax returns are projected to increase 3.0 percent from 2015 estimated actual, income tax is projected to increase by 4.0 percent from 2015 estimated actual. Utility use taxes for natural gas and electric service, building fees and rental registration fees are expected to remain constant. Projected Revenue Changes  $823,000 – Sales Tax (Combined)  $479,000 – Property Tax  $34,000 – Real Estate Transfer Tax  $1,200,000 – Storm Water Utility  $527,000 – Income Tax  The ad valorem (pr operty tax) levy is discussed in further detail within this correspondence and within Section 4: Executive Overview. It is important to note that, while the overall levy is projected to grow slightly year-over-year, the categorical charges in the levy have been redistributed to better represent actual public safety expenses for police, fire and emergency medical services. The General Fund revenue projections included in the 2016 budget are consistent with the five -year projections presented to the Village Board on August 17, 2015. 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 expenditure s as a percentage of budget are expected to be 100.6 percent for 2015, primarily due to unforeseen expenses associated with the replacement of the salt dome structure . The 2016 General Fund budget will increase $2,643,681 year-over -year. Primary drivers of the increased expenditures include contingency ($500,000), increases in healthcare benefit premiums for covered lives ($400,000), general wage increase ($450,000), additional capital projects ($700,000) and miscellaneous inflationary growth for commodities and services. 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 de creased in 2010 from 35 percent to 25 percent of the subsequent year’s budget (less pension transfers), or approximately three months of operating expenditure s. 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 r ating , respectively, and was again affirmed in 2014 for existing as well as new debt issued in 2012. For 2016, an unassigned fund balance of $9.52 million is required to maintain sufficient operating cash within the General Fund. Unassigned fund balance is projected to be $12.9 million, or 34.1 percent of the 2016 budget, less pension and capital reserve transfers as of December 31, 2016. 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 Water and Sanitary Sewer Fund. Projected Fund Balance  25% Reserve - $9,519,285  35% Reserve - $13,325,249  Projected Reserve - $12,975,644 (3 4.1%)  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 declined from 5.9 percent to 5.1 percent, year-over -year 1. While the unemployment rate has declined significantly since the 10.0 percent peak in October 2009, the year-over -year labor force participation rates have remained flat for the prior 18 months, indicating weakened interest in sustained job searches for the unemployed or underemployed. Other national factors 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. The Village straddles two counties (Cook and Lake), which can complicate economic trend analysis. Due to the community’s proximity to the Tri-State Tollway employment corridor and its position as a regional advanced manufacturing hub, it is logical to examine the projections for employment growth for the Lake County Local Workforce Investment Area. 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 a September 2015 rate of 4.2 percent, 0.7 percent better than the metro area rate and 0.9 percent better than the state, for the same period 3. The local housing market continues a slow but steady recovery from the 2008 recession, with median home sale prices hitting a six-year year high of $322,800 in September 2015 4. 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. The State of Illinois remains the greatest external economic threat to the Village’s operations. In addition to the ongoing political wrangling over a state budget (as of this writing, the state has been operating without a budget for more than four months), there are several state-level factors affecting the Village’s ability to operate effectively. Several proposals have surfaced which, if enacted, could severely reduce the Village’s 1 Source: U.S. Department of Labor, Bureau of Labor Statistics, September 2015, Seasonally Adjusted 2 Source: Local Workforce Investment Area Projections, 2012-2022, Illinois Department of Employment Security 3 Source: Illinois Department of Security, Lab or and Unemployment Statistics, September 2015, Not Seasonally Adjusted 4 Source: Zillow Home Index, Zillow.com Key Stats  $268,700 – Median Home Value  9.2% - YoY Increase – Home Sale Price  4.2% - Unemployment Rate  0.30% - Assumed Investment Yield  revenues – including a proposed 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. Moody’s Investor Services downgraded the State of Illinois bond rating to Baa1 earlier this year, just three notches above junk status. The City of Chicago was also recently downgraded to a junk status of Ba1 in May of this year. As late as October 27, Moody’s published downgrades for six public universities in Illinois, stating “the university’s reliance on the state will place a strain on operations and liquidity” for each of the affected entities. The Illinois Supreme Court further complicated matters in May 2015 by unilaterally striking down the state’s pension reform bill, reinforcing the need for the state to generate income to fill an estimated $105 billion unfunded pension liability. Together, the confluence of the pension situation, expiration of the increased state income tax, a backlog of state accounts payable of more than $4 billion and the lack of any foreseeable state budget have created a perfect storm of economic uncertainty for state government. Despite the bleak economic forecast for the state, the Village has been able to maintain a strong balance sheet. By restructuring cost centers, realigning services and seeking diversified revenue sources, the Village has righted its economic ship in many respects. Further, staff has developed contingency plans and options should the General Assembly and Governor push forward any of the revenue reduction proposals outline d above. The Village also repositioned its economic development strategy in 2015, kicking off a renewed Economic Development Strategic Plan process, which will be completed by year end. The Village hired its first Community Development Director at the end of 2014. Building & Zoning and Planning functions were unified into the Community Development Department. Staff has also developed several process efficiency improvements, electronic licensing and other value added services to enhance the building process in the Village. For 2016, the Village will look to further refine its economic development focus by creating a corridor strategy for the Lake Cook Road corridor, implementing new branding/marketing initiatives highlighting our regional position in the advanced manufacturing sector and focusing on opportunity management for both greenfield and redevelopment sites . Over the past year, the Village has successfully attracted new developments through the completion of the Easthaven of Buffalo Grove residential development, the opening of County Line Tavern, the reuse of the former Rexam facility by Nemera and Flextronics, the opening of ProSource and others. For 2016, the Village will be assessing a potential expans ion of an existing building materials supplier which could generate significant sales taxes for the local community. The Village also continues its work in assessing 6 options for the development of the Berenesa Plaza properties, and will further discuss annexation and redevelopment strategies for the Milwaukee Avenue corridor. The prolonged economic stagnation has negatively affected the Village’s ability to generate investment income. The 2016 budget anticipates corporate investment returns of 0.30 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 7.0 and 7.1 percent returns, respectively, for the period ending December 31, 2014. COMPREHENSIVE BUDGET All Fund Revenue, Expense and Fund Balance Eighty-seven 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 de crease 4.9 percent, or $3,828,739, from 2015. The budget de crease is largely driven by recalibration of internal service chargebacks, wrapping up the Emerald Ash Borer project and ongoing water meter automation projects, as well as changes in capital programs year-over-year. Capital projects total $9.3 million for operating and enterprise projects, or 12.4 percent of the total budget. The following table provides a summary of all funds. Fund 12/31/16 Revenue & Other Sources General Fund $41,714,743 Special Revenue Funds 1,230,000 Debt Service Funds 807,063 Capital Project Funds 2,478,083 Enterprise Funds 16,507,24 5 Internal Service Funds 4,412,890 Permanent/Pension Funds 11,903,160 Total $79,053,184 Balance Sheet Considerations The Village issued $2.5 million in new debt in 2015 for the automated water replacement program and continues to take an aggres sive approach to managing debt, having retired $510,000 in debt obligations in FY 2015. For 2016, the Village will retire an additional $525,000 on the Series 2010-A, Series 2010-B and Series 2012 issues. By year -end 2016, the Village will have outstanding bonded debt totaling $9,515,000 with all current debt maturing no later than 2030. 7 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, $2.0 million of which was drawn in 2015. The Village has used the line of credit entirely for the EAB response program. In 2016, further draws in the amount of $500,000 are contemplated to continue EAB tree replacements. Village staff evaluated refinancing the line of credit balance with a refunding bond series, but does not recommend this approach. Given current all- time lows for both short- and long-term financing, a current refunding to long-term paper could increase the Village’s total interest costs. Staff will continue to work with its financial advisors on a recommended approach to longer -term financing of the line of credit expenses, based upon market conditions. The Village will further contemplate a bond issuance for street and water sys tem improvements in 2016. Staff will present a property tax analysis and project schedule for consideration before year-end 2015. The Village’s strategy to fund long term depreciation for ca pital facilities and equipment was restructured in 2014 with the rebalanced budget process. A total of $1,268,776 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 a vailable. For this reason, the plan is financially constrained and made a part of the budget process. For 2016, the capital plan budget is $9,618,083 on requests totaling $14,068,356. The unbudgeted portion of the plan is driven by backlogged street maintenance work ($2.4 million) as well as water and sanitary sewer main replacement projects ($2.0 million). The Village completed a $6 million bond issue for street repair work in 2012 and will consider a second tranche of bond financing for street improve ments in 2016. The capital plan has shifted from technology-lade n expenditures in recent years to bricks - and-mortar system replacement of facilities. The public works work order system implementation will remain a budgeted item for completion in 2016. Street repair and replacement projects will total $1.7 million, in addition to fully funded sidewalk/bike path maintenance requests. The Village will incur approximately $3 million of its $6 million performance contracting project costs in 2015 for automated water meter replacements. Capital Program  $1,268,776 – Capital Reserve Transfer  $9 ,618,083 – Capital Projects  10.2% of Total Budget  Water and sewer projects comprise 57 percent of the total capital expenditures budgeted for the year, while 21 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. The Village has instituted a new chargeback to the Refuse Fund for the purpose of ongoing repair and maintenance of streets. For 2016, the Refuse Fund will provide $200,000 in reimbursements for street repairs. In addition to facility and infrastructure investments, the Village will also fund a $3.5 million equipment replacement program for 2016. Included within this program allocation is the replacement of one aerial ladder and one pumper apparatus for use by the Fire Department, comprising 64 percent of total expenditure s. 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. The combined rate will increase from $5.48 per 1,000 gallons consumed to $5.69, effective January 1, 2016. The Lake County Department of Public Works prepare d 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 fro m 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. This arrangement is expected to provide long term rate stabilization and capital project funding for Commission system improvements. Des Plaines is expected to receive Commission water in 2016. Stormwater Utility The Village Board enacted a stormwater utility fee on October 19, 2015. The utility fee will take effect on January 1, 2016, with a fixed fee of $5.08 monthly for single family residential parcels and a calculated fee based on lot size for all other parcels. 9 FEES, SALES & USE TAXES AND THE PROPERTY TAX LEVY The following rate/tax amendments are proposed in the FY 2016 budget: Property Tax Levy The 2015 (payable 2016) ta x levy includes fully funded Fire, P olice and IMRF pension allocations as well as funding for public safety and debt service , f or a total Village levy of $15.4 million . Of the total levy request, $607,063 will be used to service debt on the Series 2010-A, Series 2010-B and Series 2012 bonds after abatements totaling $200,000. The property tax levy is scheduled to increase 3.2 percent year-over -year, excluding abatements. An increase to the daily parking fee at the Sidney Mathias Train Station is included in the Parking Lot Fund budget, pending approval by the Village Board and Metra. 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 208 full-time and 61 part-time positions included in the budget. For all positions, the ratio of municipal employees per 1,000 residents is 6.4, compared to a ratio of 7.8/1,000 in 2010. Wages It is desirable that the Village provide for a general wage increase in 2016 in order to maintain a competitive environment for talented individuals. A 2.5 percent 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 alloca tions are provided for perfor mance incentives in 2016, $177,000 for satisfactory performance range movement and $35,000 for performance that exceeds expectations, for a total of $212,000, or 0.98 percent of payroll. In 2016, staff will evaluate salary ranges for all non-represented positions to ensure market competitiveness. In total, the wage pool for 2016 is $21,700,218, a 0.1 percent net decrease against 2015 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 wage reopeners scheduled for 2016. 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 10 training and profes sional development for employees totaling $245,662 and inclusive of in -house training, tuition reimbursement and travel expenses. The Village’s 2016 cost - per -employee for training activities is $913, some 36 percent or $325 less per employee than the national average.5 Employee Health & Wellness For 2016, 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 provide s balance and predictability to its self -funded health plan, with the incorporation of a nine percent fund reserve mandated by the cooperative. For 2016, various premium changes will take effect, including the fifth phased increase in employee percentage of premium contribution from 14 to 15 percent of total premium. Premiums will incr ease 10 percent, or approximately $400,000, 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 no exception and reflects the values, mission and vision of the entire Village . 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 deserve s sincere appreciation for their stewardship over Village finances and thoughtful planning for the Village ’s future. Respectfully, Dane Bragg, Village Manager 5 Source: 2014 Industry Training Report, training expenditures per learner, small companies, trainingmag.com. 11 This page intentionally left blank. 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 15 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 16 Organizational Chart Residents of Buffalo Grove Village Board Village Manager Community Development Building and Zoning Enviromental Health Planning and Economic Development Police Department Patrol I nvestigations Youth Services Admin Police Records Fire Department Emergency Management Services Fire Suppression and Rescue Fire Prevention &Education Emergnecy Management Agency Office of the Village Manager Legal Human Resources Golf Operations Information Technology Finance General Services Deputy Village Clerk Village Treasurer Public Works Admin and Building Maintenance Engineering Operations Central Garage Streets, Drainage & Sewer Forestry Water 17 Village Commissions, Committees & Boards Village Commissions, Committees, and Boards are approved 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 and provides parameters for its operation including but not limited to duties of the Commission, members, meeting schedule and purpose. I ndividuals interested in volunteering for a Village Commission, Committee, or Board are encouraged to complete a Talent Bank 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 2.34 Emergency Management Agency • 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 2014 - December 20 14: Number Sold Average Value Median Value Single Family Detached 343 $373,757 $355,000 Single Family Attached 234 $217,443 $205,000 Multi-Family 132 $110,931 $106,500 All Residential 707 $234,044 $205,000 20 21 22 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 23 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 under take those actions s pecifically allowed for in the state s tatues . Home rule enables a municipality or county to establish i ts 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 publi c 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) 24 Economic Development Strategic Plan In 2015, the Village of Buffalo Grove embarked on an Economic Development Strategic Plan (Plan). The Plan identifies how the Village can optimize its role to achieve long-term economic growth . It is a long-term plan and is meant to guide the Village over the next 10 -15 years . Moreover, it serves as a platform to leverage funding, partnerships, and programs with our private, public, and non-profit partners. The Plan includes a summary of existing conditions, goals, recommendations, and an implementation matrix. The summary of existing conditions provides an overview of the current conditions in Buffalo Grove and highlights the strengths as well as the weaknesses in the community. The goals and recommendations were developed in response to the existing conditions analysis and are organized under three themes: economic growth, development and redevelopment, and quality of life. The economic growth goal relates to business and employment growth. Specific recommendations under this theme include improving the collection and organization of business data, enhancing communications with businesses, developing a b randing and marketing campaign, promoting and supporting businesses, collaborating on workforce development programs, enhancing workforce accessibility, and exploring financial incentives for businesses development and growth. The development and redevelo pment goal focuses on new, enhanced, and expanded commercial development and redevelopment. Recommendations in this theme focus on refining the Village’s permit review and approval process, expanding municipal boundaries, creating a vision for key subareas in the community, updating the zoning code, exploring various incentives and programs to spur commercial development, encouraging environmental sustainability development, and maintaining and enhancing infrastructure. The quality of life goal addresses issues of livability and community character. Specific strategies include enhancing housing stock and opportunities, implementing beautification strategies, as well as monitoring, maintaining, and enhancing the livability and quality of life in Buffalo Grove. All of the goals and recommendations are then discussed in detail in the implementation matrix, which identifies actors and specific action steps needed to carry out the recommendations and goals. 25 Recent Development and Business Activity Sky Fitne ss Sky Fitness, a private fitness and recreational facility at 1501 Busch Parkway is adding 19,050 square feet to their facility. The multi -story expansion will house upscale amenities such as a basketball court, swimming pool, and open exercise area . Th e addition, which will continue the architectural features and aesthetics of the existing facility, represents a significant investment to the property, business, and the surrounding area. Photo Simulations of Sky Fitness Expansion. Chevy Chase Business Park – Lot 21 Hamilton Partners is building the next and final phase of the Chevy Chase Business Park at 1050 Johnson Drive. This phase includes the development of a new multi-tenant, one-story 66,526 square foot warehouse and office facility. The facility complements the rest of the Chevy Chase Business Park and contributes to the strong industrial and flex development base in the Village. Rendering Chevy Chase Business Park - Lot 2 1. 26 Easton Townhomes Spearhead Properties, LLC is developing a 15-unit townhome project at 23020 Easton Ave. As this townhouse style is generally not found in the Village, the project diversifies the Village’s housing stock and provides an additional and unique housing option for residents. Moreover, as the property was previously unincorporated, the project also helped expand the Village’s boundaries. Rendering of Easton Townhomes. Flex (Flextronics) Flex Facility 27 Looking Ahead Momentum for development and business attraction, expansion, and retention continues in various areas across the Village. Developers have come forward with concept ideas for Link Farm of the Didier Farms property, Berenesa Plaza, Prairie View area, as well as other vacant areas along Milwaukee Avenue. The Village has also been in discussions regarding redeveloping some of the older commercial areas such as Chase Plaza . New businesses, particularly advanced manufacturing businesses, are looking to expand their operations and facilities in the Village. 28 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 In 2015, the Village Board adopted the budget officer method of finances. This method does not require the Village to pass an appropriation ordinance. The legal spending document will be the budget on a stand-alone basis. Under the budget officer method the Village is required to appoint a Budget Officer. The board appointed the Finance Director to serve in the capacity of Budget Officer. The basis for budgeting, forecasting, analysis and other assumptions used by the Finance Department and other departments has not changed for the preparation of the 2016 Budget document. 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 figure as a parameter to work within while developing their respective 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 fo rmat 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 2016. 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 r educe expenditures. Any adjustments or addendums to the budget must be passed by the Village Board in the form of a budget amendment.  Budget Timeline Date Event Requirement/Action Friday, June 26, 2015 Budget/CIP Instructions Distributed Finance staff distribution Tuesday, July 07, 2015 FY 2016 Initialized in New World Systems Staff creates FY 2016 in NWS Monday, July 20, 2015 Committee of the Whole Meeting Staff provide six month financial update on FY 2015 Budget, Report on FY 2014 CAFR, Discuss Budget Ac t, Health Insurance Performance Wednesday, July 29, 2015 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 Thursday, July 30, 2015 Capital Budget Meetings Review capital requests Friday, July 31, 2015 Village Fee & Fines Recommendation Department fee & fine recommendations due to the Office of Village Manager Wednesday, August 05, 2015 Meeting on Capital Reserve Funding Staff reviews funding requirement for vehicles, buildings and technology Wednesday, August 12, 2015 Salary and Health Insurance Budgets Added to Department Budgets Staff adds wage and insurance line-items . Census reports distributed for review Monday, August 17, 2015 Committee of the Whole Meeting Presentation of five year General and Water Fund Operating Proforma discussion, CIP, Wage recommendations, Preliminary Tax Levy Wednesday, August 19, 2015 Capital Reserve Amounts Distributed and Added into NWS Reserve amounts calculated for veh icles, technology and buildings Friday, August 21, 2015 General Fund Revenue Estimate Staff compiles estimated actual for FY 2015 and budget for FY 2016 Friday, August 28, 2015 Preliminary Budgets added to New World Systems. All department budgets entered into NWS Monday, August 31, 2015 RFP/RFQ/Bidding Calendar Department Directors report FY 2016 activity to Brett Robinson August 31 - September 4, 2015 Department Meetings Department Directors discuss budget requests to Village Manager/Deputy Manager Friday, September 11, 2015 Final Budget Requests Due Final department budget due September 14 - October 9, 2015 Budget Preparation FY 2016 Budget production Friday, October 09, 2015 Preliminary Detail Budget to Village Board Preliminary detail budget emailed to Village Board Monday, October 19, 2015 Draft Budget to Village Board Draft budget distributed to Village Board Monday, November 02, 2015 Village Board Meeting Truth-in-Taxation determination Monday, November 16, 2015 Village Board Meeting FY 201 6 Budget Presentation Monday, December 07, 2015 Village Board Meeting FY 2015 tax levy (public hearing), Budget adopted by resolution 32 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 the reader with an overview of Buffalo Grove, as well as its villagewide goals are in Section 4 and Economic Development is in Section 2. 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 staffing, 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, staffing, 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 wi thin 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. 13. Appendix C Human Resources: A summary of health insurance plan benefits and an aggregate of Village staffing levels. 14. Appendix D Document Definitions: Includes definitions of key terms and acronyms that are found throughout the budget book. 33 Basis of Budgeting The Village of Buffalo Grove accounts for all funds and adopts a budget based on generally accepted accounting principals (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 the three following 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 that 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 Rep ort, 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 of the funds of the Village may be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 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 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. D 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 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 as 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 look like this: 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 36 2XX – Liability 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 look like this: 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 37 C urrent 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 and 20% of the Home Rule Sales Tax. 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. 38 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 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 39 This page intentionally left blank. 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, str ategic 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 partnershi ps 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 2016, the Village’s proposed budget is balanced and does not contemplate the implementation of new taxes. The property tax levy will increase by approximately 3.2 percent for the 2015 levy, payable 2016. 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 2013, 201 4 and 201 5 (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 tra nsfers . The following table depicts total revenues by category for all funds for the years 201 4, 2015 and 2016 (proposed). $0 $5,000,000 $10,000,000 $15,000,000 2013 2014 2015 Total Gross Tax Levy Cook County Lake County 43 Revenues by Category The total r evenue budget for 2016 is $79,053,184. This budget is a 1.6 percent increase over the 201 5 estimated actual and 11.5 percent more than the 201 4 actual. A significant increase ($5.5 million) in 2016 as compared to the 2014 actual is due to the addition in 2015 of three Internal Service Funds for Central Garage, Building Services and Information Technology. Account Category FY 2014 Actual FY 2015 Est. Actuals FY 2016 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 $1 34,290 $13 5,400 $135,400 Animal Licenses $7 ,000 $7,010 $7,010 Building Revenue & Fees $998,521 $1,085,805 $76 6,000 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 $2,2 45,604 $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 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, telecom 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 b y 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 $14,550,225 $627,063 Other Taxes $21,162,913 $1,000,000 Licensing $284,810 Charges for Service $706,000 $10,825,475 $1,269,180 Investments $49,950 $9,000 Fines and Fees $1,619,672 $228,950 Operating/Int. Service Trans. $864,000 $180,000 $928,356 $1,049,727 $155,020 All Other Revenue $2,477,173 $1,050 $500,000 $3,000,000 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 FY 2015 Budget $39,038,469 $181,100 $1,679,205 $804,813 $3,590,611 $50,000 $16,474,253 $1,361,050 44 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 $15,177,288 Other Taxes $22,162,913 Licensing $284,810 Charges for Service $1,101,150 $13,901,805 Investment $3,130,000 $1,930,000 $5,118,950 Fines and Fees $1,848,622 Operating/Int. Service Trans. $146,919 $1,224,249 $1,791,878 $1,396,763 $2,440,239 $2,174,632 $12,351,784 All Other Revenue $500 $1,040,000 $663,222 $525,067 $8,207,012 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 FY 2015 Budget $1,264,596 $1,101,570 $2,365,390 $2,042,347 $1,025,000 $6,610,786 $6 ,532,339 $84,121,529 Property Tax, 19.2% Other Taxes, 28.0% Licensing, 0.4% Charges for Service, 17.6% Investment , 6.5% Fines and Fees, 2.3% Operating/Internal Service Transfer, 15.6% All Other Revenue, 10.4% 45 Revenues by Source Summarized - All Funds Summary by Funds General Special Revenue Capital Projects Debt Service Enterprise Internal Service Trust & Agency Total Property Tax $14,550,225 $627,063 $15,177,288 Other Taxes $21,162,913 $1,000,000 $22,162,913 Licensing $284,810 $284,810 Charges for Service $706,000 $13,195,805 $13,901,805 Investment Revenue $49,9 50 $9,000 $5,060,00 0 $5,118,950 Fines and Fees $1,619,672 $228,950 $1,848,622 Operating Transfers $864,000 $1,978,083 $180,000 $301,939 $4,412,890 $4,614,871 $12,351,784 All Other Revenue $2,477,173 $1,050 $500,000 $3,000,500 $2,228,289 $8,207,012 FY 2016 Budget $41,714,743 $1,230,000 $2 ,478,083 $807,063 $16,507,244 $4,412,890 $1 1,903,160 $79,053,184 FY 2015 Budget $39,038,469 $1,860,305 $3,640,611 $804,813 $19,099,899 $5,509,307 $13,143,125 $84,121,529 Total Revenue by Fund Fund Fund # FY 2013 Actual FY 2014 Actual FY 2015 Budget FY 2016 Budget % of Prior Year Budget General 100 $35,546,713 $37,494,997 $39,038,469 $41,714,743 106.24% Illinois Municipal Retirement 110 $1,619,585 $0 $0 $0 0.00% Parking Lot 120 $149,536 $176,100 $181,100 $230,000 127.01% Motor Fuel Tax 130 $1,185,095 $1,817,252 $1,679,205 $1,000,000 59.56% Debt Service 140 $1,294,050 $804,8 13 $807,063 100.28% Capital Projects - Facilities 150 $320,538 $2,163,404 $3,590,611 $1,428,356 39.78% Capital Projects – Streets* 160 $708,980 $113,000 $50,000 $1,049,727 2,094.61% Water & Sewer 170 $8,885,865 $11,494,412 $16,4 74,253 $13,834,475 83.98% Buffalo Grove Golf Course 180 $1,087,726 $1,202,100 $1,264,596 $1,248,569 98.74% Arboretum Golf Course 190 $1,237,339 $1,158,400 $1,361,050 $1,424,200 104.64% Refuse Service 200 $1,040,878 $1,020,000 $1,025,000 $1,040,000 101.47% Information Technology 211 $0 $0 $1,1 01,570 $1,224,249 111.14% Central Garage 212 $0 $0 $2,365,390 $1,791,878 75.76% Building Maintenance 213 $0 $0 $2,0 42,347 $1,396,763 68.39% Police Pension 220 $8,490,951 $4,439,846 $6,610,786 $6,223,461 94.15% Fire Pension 230 $8,513,213 $4,404,677 $6,532,339 $4,629,699 70.88% Total $71,042,682 $66,565,701 $84,121,529 $79,053,184 93.98% *Transfer of 20 percent of home rule sales tax revenue for road maintenance moved from Motor Fuel Sales Tax Fund to Capital Projects Streets Fund in 2016. 46 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 (51.4 percent) is apportioned to P ersonnel Services and Benefits. Included within those categories are wages, health insurance, training/education, and pension contributions . Thus, a great deal of effo rt 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 201 4 , 2015 and 2016 (proposed). Account Category FY 2014 Actual FY 2015 Est. Actuals FY 2016 Budget Personal Services $21,099,903 $2 0,878,303 $2 1,700,218 Personal Benefits $15,181,673 $1 5,816,648 $1 6,788,076 Operating Expenses $4,245,353 $6 ,114,488 $7,637,789 Insurance $938,588 $1,0 31,135 $1,0 02,212 Legal Services $3 73,232 $325,500 $374 ,050 Commission & Committees $125,331 $104,600 $111,800 Commodities $4,348,816 $4,414,83 2 $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 $7 4,908,609 The Village further analyzes and presents budgeted revenues and expenses by fund, i ncluding the general (main operating), enterprise, fiduciary, internal service and capital funds. The net increase in spending from the 2014 actual versus the 201 5 estimated actuals and 2016 budget is due to a variety of reasons including capital projects and internal service chargebacks for technology, buildings and central garage functions. The internal service chargebacks result in significant increases in Operating Expenses (technology), Maintenance and Repairs-Facilities (building services) and Maintenance & Repairs -Vehicles (central garage). 47 Summary of Expenditures by Source - All Funds The following chart provides a summary of expenditures by source. Approximately 51 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 14.4 percent. I t is anticipated that $10.8 million in capital projects and equipment acquisitions are scheduled . Signific ant projects include the annual street maintenance program, the fourth year’s efforts to remove and replace Emerald Ash Borer infested trees, system improvements for water, sewer, and drainage utilities. The improvements include repairing sections of water main and storm sewer main and replacing all water meters that will allow for wireless meter read ing s. Facility costs include roof and carpet replacements , police department video surveillance system improvements, and parking lot maintenance. Technology enhancements are budgeted that wil l improve Public Works systems integration. 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 $1.8 million from the General Fund to the Capital Project and Motor Fuel Tax 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, and 2012, and an installment contract, total $1,164,246 in 2016. Summary of Expenditures by Source - All Funds Description Personal Services & Benefits Operating Expenses Legal/Ins Services Commodities Maintenance & Repairs General Fund $29,654,662 $2,787,072 $1,168,819 $438,725 $3,098,279 Parking Lot $149,654 $14 ,000 $17,500 Motor Fuel Tax Total Special Revenue Funds $149,654 $14,000 $17,500 Debt Service Fund Capital Projects - Facilities Capital Projects - Streets Total Capital Projects Funds Water & Sewer $1,498,178 $1,977,972 $107,199 $3,762,700 $689,871 Buffalo Grove Golf Course $438,102 $535,863 $1 5,361 $64,000 $100,037 Arboretum Golf Course $225,613 $839,388 $8 ,360 $65,000 $200,0 25 Refuse Service Total Enterprise Funds $2,161,893 $3,353,223 $130,920 $3,891,700 $989,933 Information Technology $1,169,673 $17,357 $5,000 Central Garage $797,437 $32,112 $32,320 $3,000 $871,791 Building Maintenance $587,595 $146,055 $26,846 $120,045 $491,222 Total Internal Service $1,343,744 $1,347,840 $76,523 $123,045 $1,368,013 Police Pension $3,320,216 Fire Pension $1,966,491 Total Fiduciary Funds $5,286,707 All Funds $38,488,294 $7,637,789 $1,376,262 $4,467,470 $5,473,725 48 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 $1,425,236 $2,080,022 $1,018,060 $41,670,875 Parking Lot $12,000 $500 $193,654 Motor Fuel Tax $1,000,000 $1,000,000 Total Special Revenue Funds $1,000,000 $12,000 $500 $1,193,655 Debt Service Fund $810,063 $810,063 Capital Projects - Facilities $1 ,428,356 $1,428,356 Capital Projects - Streets $1,049,727 $1,049,727 Total Capital Projects Funds $2 ,478,083 $2,478,083 Water & Sewer $5,579,144 $354,183 $945,000 $14,914,247 Buffalo Grove Golf Course $88,600 $1,000 $1,242,963 Arboretum Golf Course $75,500 $1,0 00 $1,414,886 Refuse Service $2 75,000 $751,740 $1,026,74 0 Total Enterprise Funds $5,743,244 $354,183 $1,220,000 $753,740 $18,598,836 Information Technology $32,219 $1,224,249 Central Garage $55,218 $1,791,878 Building Maintenance $25,000 $1,396,763 Total Internal Service $112,437 $4,412,890 Police Pension $295,500 $3,612,716 Fire Pension $165,000 $2,131,491 Total Fiduciary Funds $460,000 $5,744,207 All Funds $10,759,001 $1,164,246 $3,312,022 $2,232,300 $74,908,609 General Fund, 55.6% Special Revenue Funds, 1.6% Debt Service Fund, 1.1% Capital Projects Funds, 3.3% Enterprise Funds, 24.8% Internal Service Funds, 5.9% Fiduciary Funds, 7.7% 49 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 2016 is $74,908,609. That total is 4.9 percent less than the 201 5 budget and 18 percent more than actual expenditure in 2014. Over fifty 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 2013 Actual FY 2014 Actual FY 2015 Budget FY 2016 Budget % of Prior Year Budget General 100 $34,463,242 $39 ,043,476 $39 ,027,194 $41,670,875 106.78% Illinois Municipal Retirement 110 $1,598,101 $0 $0 $0 0 % Parking Lot 120 $192,398 $219,535 $152,938 $193,654 126.63% Motor Fuel Tax 130 $5 ,684,477 $2,014,666 $1,679,205 $1,000,000 59.56% Debt Service 140 $1,325,396 $1,103,664 $807,8 13 $810,063 100.28% Capital Projects - Facilities 150 $1,276,075 $1,383,234 $3,590,611 $1,428,356 39.78% Capital Projects- Streets 160 $388,451 $1,149,921 $50,000 $1,049,727 2,009.46% Water & Sewer 170 $9,098,579 $9,160,908 $19 ,035,519 $14,914,247 78.35% Buffalo Grove Golf Course 180 $1,119,627 $1,168,803 $1,264,596 $1,242,963 98.29% Arboretum Golf Course 190 $1,686,923 $1,631,832 $1,361,050 $1,414,886 103.96% Refuse Service 200 $902,810 $803,039 $965,000 $1,026,740 106.40% Information Technology 211 $0 $0 $1,1 01,570 $1,224,249 111.14% Central Garage 212 $0 $0 $2,365,390 $1,791,878 75.76% Building Maintenance 213 $0 $0 $2,0 42,347 $1,396,763 68.39% Police Pension 220 $2,684,741 $3,005,470 $3,090,627 $3,612,716 116.90% Firefighter Pension 230 $1,832,311 $2,133,142 $2,203,491 $2,131,491 96.74% Grand Total $62,261,128 $63 ,463,812 $78,737,348 $74,908,609 95.14% By C a t e g o r y Personal Services $31,584,591 $36 ,317,374 $37,864,098 $38,488,294 101.65% Operating Expenses $3,730,643 $4,245,353 $6,292,022 $7,637,789 121.39% Commodities $3 ,964,005 $4,348,816 $4,659,320 $4,467,470 95.89% Maintenance & Repairs $1 ,689,282 $2,148,901 $6,900,044 $5,473,725 79.33% Capital Equipment & Projects $8 ,417,711 $8,309,142 $16,185,995 $10,759,000 66.4 8 % Debt Service $1,678,218 $1,114,256 $813,823 $1,164,246 143.06% Operating Transfers $6 ,757,989 $2,356,486 $2,963,943 $3,312,022 111.75% All Other Expenses $4 ,438,689 $4,615,159 $3,058,103 $3,606,062 117.92% Grand Total $62,261,128 $63 ,455,487 $78,737,348 $74,908,609 95.14% 50 Summary of Revenue and Expenditures by Category Revenue Account Category FY 2014 Actual FY 2015 Est. Actuals FY 2016 Budget Property Taxes $14,55 4,564 $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 $76 6,000 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 2014 Actual FY 2015 Est. Actuals FY 2016 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 $74,3 00 $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 51 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 a lternate service delivery models. 2. Reevaluating employee salary ranges biannually 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 2016). 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 2015. For 2016, the Village proposes a full-time staff complement of 209 full-time personnel and 61 part-time personnel. FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Office of Village Manager/Administration 5 1 6 0 3 0 Building & Zoning 9 1 10 1 11 3 Finance & General Service 10 0 8 0 8 2 Fire Services 58 3 59 2 59 2 Golf Operations 7 51 7 51 3 32 Human Resources 2 0 2 0 2 0 Information Technology 3 0 0 0 0 0 Police Services 74 14 74 14 74 12 Public Works/Engineering 50 9 50 10 49 10 Total 218 79 216 78 209 61 Full & Part -Time Grand Total 297 294 270 52 2015 & 2016 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 a chieve 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. In 2015, the Village engaged a consultant to update the strategic plan and facilitate interactive discussions with the Village Board about their vision for Buffalo Grove’s future. This process will continue into 2016. When the process is complete, a formal amendment to the plan will be presented to the Village Board for approval. 53 Vision and Mission Statements Vision The Village’s Management Theme is “Achieving Excellence” Mission Excellence in Service Delivery: Continuously evaluate programs and services 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 o f 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 . 54 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 effici ent 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 fin ancial 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, Green Infrastructure. 55 PROGRESS TOWARDS 2015 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 The Village’s service areas are evaluated and resource needs are identified and/or priorities realigned based on Service Level Expectations (SLEs). Service delivery expectations are aligned with available resources, resulting in a balanced operating budget. A 311/CRM (Customer Relationship Management) platform is established to provide on-call services Village-wide by January 1, 2018. Action Steps Status Project Manager A plan to share assets with other governmental entities is developed An update to the purchasing policy was completed that requires staff to reach out to other entities prior to making significant purchases of assets. 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 listing of all services has been developed and service levels will be evaluated this winter. The goal will continue into 2016. Deputy Village Manager Go live with licensing, building permits, ticket collections, parking permits, and Police and Fire test sign up All licensing went live in 2015. Staff is currently working with the Village’s ERP provider to allow for building permits and ticket collections to be paid online. Staff is in progress with an applicant tracking software for Police and Fire candidates . Deputy Village Manger Review and update the Development Ordinance to streamline processes Development Ordinance changes were presented to the Village Board at COW in the fall. The Ordinance formally approving the changes will be complete by the end of December 2015. Public Works Director Evaluate the opportunity for a regional 311/CRM system A report regarding 311 services was provided to the Village Board. The Village Board decided not to move forward with a formal 311 system and directed staff to continually look for other ways to improve customer service. Deputy Village Manager 56 Action Steps Status Project Manager Implement online police reporting for minor incidents Due to State budget concerns, this project was put on hold in 2015. The project is included in the 2016 budget. Police Chief Review calls for service and evaluate possible changes to the police beat system Analysis has been complete and some minor changes will be made to the beat system this year. A formal overhaul will be complete when the Village transitions to a new CAD system with the regional dispatching agency. Police Chief Implement work order and asset management program for public works First and second phase of i mplementation complete in 2015. Third phase implementation will be a goal in 2016. Public Works Director Strategic Initiative: Marketing and Communication The Village will be rated 85 percent or higher customer service satisfaction rating for Village provided services as determined by data collected. Action Steps Status Project Manager Develop a plan to effectively evaluate customer service satisfaction for key Village services Staff has completed interviews with l all departments to determine feedback points. A survey of other municipalities has also been completed. A report will be generated and provided for discussion with Senior Staff by the end of 2015. Deputy Village Manager Strategic Initiative: Organizational Needs An internal asset-sharing program is operational and an intergovernmental asset-sharing program is operational. Action Steps Status Project Manager Evaluate the opportunity to merge the records and front desk windows and cross train the records clerks and desk officers Report was presented to the Village Manager’s Office. Cross training is ongoing; however, a formal merger cannot take place until the Village has available funds for a construction project. Police Chief Analyze the opportunity to civilianize the EMS Coordinator position using a RN An evaluation was presented to the Village Manager’s Office. No changes will be made until a retirement occurs. Fire Chief Update mutual aid agreements with all communities surrounding the Village Boilerplate language for all agreements were complete in November and negotiations with surrounding Villages will take place at that time. The final agreements will be complete in 2016. Fire Chief 57 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 The Village’s technology platform is capable of providing best-fit services that are reliable, consistent and integrated across departments and service areas by January 1, 2016. Personnel have the capability to easily request and receive services, develop reporting metrics and enhance technology services consistent with the Village’s technology plan and available resources. Action Steps Status Project Manager All personnel files converted to electronic format by 12/31/15 The folders in the document management system are set up and all new files are filed electronically. Funds will be budgeted to complete scanning of all files for existing employees each year. HR Director Retire Lotus Notes A list of remaining databases has been reviewed and over 100 have been identified for deletion. Many others will transfer over to new platforms in 2016. This goal will continue into 2016. Deputy Village Manager Implement Online Applicant Tracking Appli cant tracking will be implemented by January 1, 2016. HR Director Strategic Initiative: Personal Growth & Balance Create a Village-wide Comprehensive Training Program with training curricula that meets the needs of employees as well as leadership development. Action Steps Status Project Manager Launch the BG Training Academy that includes a supervisory track Academy program is in process and will be fully implemented June 1, 2016 HR Director Work with Wellness Committee to develop health insurance plan design changes The Wellness Committee developed a survey that was sent to all employees regarding plan design changes. A decision was made not to make plan design changes until 2017. HR Director 58 Strategic Initiative: Leadership and Support Foster an innovative culture of collaboration through the creation of a Village-wide Compensation Plan. Develop a formal performance improvement plan prior to May 1, 2015 evaluation cycle. Action Steps Status Project Manager Launch and Evaluate Pay for Performance Plan Pay for performance plan was successfully launched. All employees were evaluated and received the appropriate increase based on their evaluation. A staff meeting was held to evaluate a nd make changes for 2016. HR Director Develop a mid-year performance review program between employees and their immediate supervisors Guidelines for the mid -year review will be distributed to supervisors by the end of 2015. Meetings to take place in January of each year. 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: Cost Control Develop a program-based budget and put in place by January 1, 2018. Action Steps Status Project Manager Establish program/service cost centers This goal has been moved to 2016. Finance Director Train Village supervisors and employees on program based budgeting This goal moved to 2016. Finance Director Evaluate the success and use of performance contracting Due to the timing of the water meter project, this goal will be moved to 2016. Finance Director Develop a plan to audit Food & Beverage taxpayers and implement the plan Plan approved and ready for implementation by January 1, 2016 Finance Director 59 Strategic Initiative: Reserves Corporate fund reserves will increase to 30% by January 1, 2014 and to 35% by January 1, 2018. Action Steps Status Project Manager Create a fee schedule within the Village code Ordinance will be provided to the Village Board by January 1, 2016. Finance Director Evaluate the current EMA structure and assets and make appropriate recommendation Assets are in the process of being evaluated and a formal recommendation will take place in 2016. Fire Chief 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 Create an overall retail expansion and redevelopment plan by January 1, 2017. Action Steps Status Project Manager Create Economic Development Plan categorized by corridor An economic development strategic plan committee was formed and a final recommendation on a plan will come before the Village Board by the end of 2015. Community Development Director Conduct a corridor planning study of the Dundee Road Corridor This goal has been moved to a future year in light of the strategic planning committee mentioned above. Community Development Director 60 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: Financial Develop and follow an amortization schedule for capital equipment to achieve a target 50% replacement value in order for infrastructure sustainability by January 1, 2016. Action Steps Status Project Manager Audit equipment usage and lifecycles to ensure proper reserve payments ar e made This project is complete and adequate dollar amounts were included in the 2016 budget. Finance Director Evaluate a capital leasing strategy for large assets An evaluation of capital leasing was completed and presented to the Village Board at a Committee of the Whole meeting. It was decided to continue with a pay-as-you-go financing strategy. Finance Director Strategic Initiative: Green Infrastructure Identify a funding source for Storm Water Management System repairs and replacements. Action Steps Status Project Manager Implement a Stormwater Utility Program in order to create a capital funding source for stormwater utility improvements. The Village Board adopted a stormwater utility fee. The fee is included in the 2016 budget and will be implemented on January 1, 2016. Public Works Director 61 2016 STRATEGIC PLAN 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 The Village’s service areas are evaluated and resource needs are identified and/or priorities realigned based on Service Level Expectations (SLEs). Service delivery expectations are aligned with available resources, resulting in a balanced operating budget. A 311/CRM (Customer Relationship Management) platform is established to provide on-call services Village-wide by January 1, 2018. Note: Service Level Expectations are scheduled to be presented before the Village board at the end of 2016. The 311/CRM goal has been modified based on Village Board direction in 2015. The Village Board decided not to move forward with a formal 311 system, but instead directed staff to continue to look for ways to improve customer service through cross training, online offerings, and consolidation of services. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Investigate the opportunity to deploy mobile tablets in the field for Public Works. $1,200 10 Staff hours Tablets are implemented by June 1, 2016 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 100 Staff Hours Complete service catalog by June 1, 2016 Deputy Village Manager Implement online police reporting for minor incidents $15,000 10 Staff Hours Reporting software implemented by June 30, 2016 Police Chief Implement a new point of sale system for BGCC and Arboretum. $3,000 50 Staff Hours Software is implemented by March 1, 2016 Head Golf Professional Evaluate the cost versus reward of GPS units in golf carts. 20 Staff Hours Recommendation to Deputy Village Manager by December 31, 2016 Head Golf Professional Review all Village forms/applications and develop a plan to transition them to the website in an online format. 30 Staff Hours Plan complete September 1, 2016 Deputy Village Manager 62 Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Complete Cartegraph implementat ion $55,940 200 Staff Hours December 31, 2016 Public Works Director Migrate food and beverage tax payments online. 40 Staff Hours September 1, 2016 Finance Director Implement a revised vehicle utilization plan in the Fire Department. 10 Staff Hours March 1, 2016 Fire Chief Analyze Police Department daily activity reports and create a strategy for best use of officer time. Use reports to create Goal Timelines. 30 Staff Hours Analysis provided to Village Manager by May 1, 2016 Police Chief Strategic Initiative: Marketing and Communication The Village will be rated 85 percent or higher customer service satisfaction rating for Village provided services as determined by data collected. Note: There are a variety of ways the Village currently seeks feedback from residents and businesses. In 2015, staff is reviewing the current ways in which the Village seeks feedback and will make recommendations to the Village Board on how to move forward by the end of 2015. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Analyze the success of social media communications and revise the communications strategy as needed. 5 Staff Hours Report presented to Village Manager by July 31, 2016 Deputy Village Manager Develop a style guide and brand standard for all Village publications and communication pieces. $8,750 20 Staff Hours Consultant to provide final guidelines by June 30, 2016 Deputy Village Manager Evaluate the cycle of the Village News and develop a revised strategy for Village Board approval. 5 Staff Hours Recommendation to Village Board by March 31, 2016 Deputy Village Manager Strategic Initiative: Organizational Needs An internal asset-sharing program is operational and an intergovernmental asset-sharing program is operational. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Update mutual aid agreements with all communities surrounding the Village 12 Staff Hours April 1, 2016 Fire Chief Evaluate the efficiency of moving all inspectors into Community Development . 40 Staff Hours Analysis provided to the Village Manager by July 1, 2016 Community Development Director 63 Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Evaluate Village Hall front counter needs in light of the customer service counter merger. $80,000 40 Staff Hours Final plan complete March 31, 2016 CD Director/Finance Director Evaluate the opportunity to aggregate water billing with other communities. 20 Staff Hours Evaluation complete December 31, 2016 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 The Village’s technology platform is capable of providing best-fit services that are reliable, consistent and integrated across departments and service areas by January 1, 2016. Personnel have the capability to easily request and receive services, develop reporting metrics and enhance technology services consistent with the Village’s technology plan and available resources. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Retire Lotus Notes $100,000 150 Staff Hours Less than 50 databases left in Lotus Notes by December 31, 2016 Deputy Village Manager Implement employee event change form in NWS 20 Staff Hours Electronic event change form implemented by April 1, 2016 Human Resources Director Implement electronic employee benefit enrollment. 40 Staff Hours Electronic enrollment available by July 1, 2016 Human Resources Director 64 Strategic Initiative: Personal Growth & Balance Create a Village-wide Comprehensive Training Program with training curricula that meets the needs of employees as well as leadership development. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Launch the BG Training Academy that includes a supervisory track $12,000 100 Staff Hours Academy will be launched by June 1, 2016 Human Resources Director Develop an employee intranet with one location to host all support documentation for employees. 20 Staff Hours Intranet Implemented February 1, 2016 Human Resources Director Strategic Initiative: Leadership and Support Foster an innovative culture of collaboration through the creation of a Village-wide Compensation Plan. Develop a formal performance improvement plan prior to May 1, 2015 evaluation cycle. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Review pay ranges in 2016 based on the Village’s comparables with a January 1, 2017 implementation date. 100 Staff Hours Pay range review complete by June 1, 2016. Salary Ranges adopted by Village Board January, 2017. 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 The Village’s portion of the annual property tax bill will remain a stable percentage (11%) or decline. Action Steps Budgetary Considerations Goal Timelines Project Manager(s) Implement quarterly parking pass for Metra parking lot. 10 Staff Hours Parking pass implemented March 30, 2016 Finance Director 65 Strategic Initiative: Reserves Corporate fund reserves will increase to 30% by January 1, 2014 and to 35% by January 1, 2018. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Evaluate the current EMA structure and assets and make appropriate recommendation 20 Staff Hours Formal recommendation to Village Manager by May 1, 2016 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. 15 Staff Hours Report and recommendation provided to Deputy Village Manager by February 1, 2016 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 Deve lopment and Redevelopment Create an overall retail expansion and redevelopment plan by January 1, 2017. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Develop a complete and revised annexation strategy. 120 Staff Hours Strategy presented to the Village Board for consideration by October 1, 2016 Community Development Director Complete and implement corridor planning and market analysis for Prairie View and Lake Cook Road corridors. $100,000 400 Staff Hours Corridor plans presented to the Village Board by December 31, 2016 Community Development Director 66 Strategic Initiative: Opportunity Management Improve and simplify the development review process and procedures through a thorough evaluation by January 1, 2014. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Develop and distribute a series of development brochures to the business community and prospective developers. $5,000 80 Staff Hours New brochures complete and distributed June 1, 2016 Community Development Director Complete the 2015 ICC Code Update. $1,500 100 Staff Hours ICC Code Update presented to the Village Board for consideration by October 1, 2016 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 Create a strategy for incorporating fleet, major equipment, and major building improvement planning into capital forecasts and the annual budget program for the FY17 budget. Note: In 2015, the goal to fund capital equipment at a 50% ratio was revised as the purchase of one major piece of equipment (e.g. fire apparatus) could drop the funding ratio below 50% while at the same time the Village reserve amounts remain stable. Action Steps Budgetary Considerations Goal Timeline Project Manager(s) Evaluate costs and benefits of a green fleet program. 50 Staff Hours Report on evaluation provided to the Village Manager by June 1, 2016 Public Works Director Review the Village’s Bike System and Bike Plan to identify priority connections and develop a plan to make connections. 20 Staff Hours Plan presented to the Village Manager by May 31, 2016 CD Director & PW Director Develop a plan for BGGC club house improvements. 20 Staff Hours Recommendation to Deputy Village Manager by June 1, 2016 Head Golf Professional 67 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 imp act of the na tional economy (macro) on the local economy (micro) is a n 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 subjec t 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. Vehic le 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 rate 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 Roa d and Bridge taxes) are anticipated to be approximately $15.2 million and will be levied in 2016. This is referred to as the 2015 property tax levy, payable in 2016. Property taxes account for about 19 percent of all budgeted revenues. The total levy is an ticipated to increase by 3.2 percent over the property taxes extended in 2015. 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 core functions of the Village including public safety and health, public works, and general administration. The Village traditionally uses an inflation metric created by American City and Government and published as the Municipal Cost Index to set the growth target for the Corporate Tax Levy. The Municipal Cost Index is an amalgam of combined inflationary indices 68 (Consumer Price Index-Urban, Producer Price Index and Employer Cost Index) applied to how a local government typically spends its resources. The trailing twelve month inflation rate is .2 percent. In order to meet the demand of current service levels the Village is recommending a 3.8 percent increase beyond inflation for a total Corporate Tax Levy increase of four percent. 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. Most of the growth in the tax levy dollars (excluding debt service) is due to mandated pension obligations as noted in the graph below. 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 due in 2016 is $807,063. The Village of Buffalo Grove levies property taxes within two counties, Cook and Lake, and the Illinois Department of Revenue is tasked with the responsibility of assigning a tax burden to each county. For the 2015 property tax levy, 76.87 percent of all assessed valuation is located in Lake County and 23.13 percent is located in Cook County. The following chart shows the growth of all real property in the Village over the last ten years. $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 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Components of Tax Levy - Truth in Taxation Net of Debt Service Fire Pension Police Pension IMRF/FICA Corporate 69 Market values have stabilized after a four year decline during the recession. The estimated tax rate will be $1.09 per $100 of equalized assessed valuation for the 2015 tax levy (extended in 201 6). The rate at which property taxes are levied is determined by dividing the amount requested by the total equalized assessed valuation (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 and ten year average decline in assessed value in both Cook and Lake Counties are (-30.01% and -1.74%) and (-16.62% and -.97%) 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. State shared sales taxes surpassed the pre-recessionary peak in 2006. Sales taxes were up eleven percent during the current year due to stronger home sales (lumber credit processing center in the Village), strong industrial sales, and a full year of higher volume grocery stores replacing closed Dominick’s locations. The FY 201 5 budget anticipated $5.2 million in sales tax revenue. The estimated actual will be approximately 5.8 percent more or $5.3 million. For 2016, the budget is anticipated to be $5.7 million. Growth is based on 3 percent inflation. The following chart shows the las t ten year s of State Sales Tax revenue. 0 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 1,800,000,000 2,000,000,000 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014 Equalized Assessed Valuation Cook County Total EAV Lake Couty 70 Home Rule Sales Tax In 1992, the Village assessed a one-half cent ($.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%). As a condition of that increase, 20 percent of all home rule sales taxes are transferred to help fund street maintenance. The budgeted tra nsfer is $.7 million. In 201 6 , revenues are anticipated to increase by three percent from the 201 5 estimated actu al amount of $3.64 million to $3.75 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 2014 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 2007 2008 2009 2010 2011 2012 2013 2014 2015 pro.2016 est. State Sales Tax History $0 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 pro 2016 est Home Rule Sales Tax History 71 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 11 2 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. Two restaurants ceased operations during the year which caused a drop in the estimated actual revenue for FY 2015. The estimated revenue for 201 5 is seven percent below the budget target and 2016 is forecast to grow three percent to $7 46,750. This revenue does not account for any more businesses to locate within the jurisdiction. 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 changed on January 1st , 2015 to 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 s tate. Based upon data provided by the Illinois Municipal League, the FY 2016 Income Tax budget is $4.6 million ($109.80 per capita) and Use Tax is $.92 million ($22 .37 per capita). Collectively, Income and Use tax will be at budget and are projected to increase by four percent in FY 2016. Unemployment in the State of Illinois is recovering to pre-recessionary levels. The state unemployment rate is 5.4 percent (Bureau of Labor Statistics - September 2015) compared to 6.6 percent one year ago. The Village of Buffalo Grove’s unemployment statistics have consistently beat the national and state averages, with an September 2015 rate of 4.2 percent. General Merchandise, 0.08% Food, 14.94% Drinking and Eating Places, 9.36% Apparel, 0.93% Furniture & H.H. & 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% 72 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 $1.6 4 million for 2014 and the budget is largely unchanged for 2015 at $1.65 million. Utility taxes for natural gas are levied at a rate of $0.05 per therm. The estimated amount for 2015 is $1 million with the budget remaining the same for FY 2016. 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 (effective July 1, 2008). The unbundling of phone and data services for the p urpose of extending the tax has had a significant negative impact on collections. Combined with the economic decisions to consolidate, or eliminate, additional phone lines, revenue is down 34 percent from the peak in 2007. Voice over Internet Protocol (VoI P) phone services such as those provided by Xfinity/Comcast and Vonage are subject to this taxation. The estimated actual for 2015 is 1 2.6 percent less than budget and the FY 2016 contemplates another decline of two percent. Attached is a chart showing the last ten years of revenue. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 est 2016 pro Income & Use Tax Revenue History 73 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. Since 2005, collections have dropped 40 percent as a result of the collapse of the housing market. In recent years, this revenue has relied heavily on the sale of large commercial properties (sales consideration > one million dollars). A review of sales data indicates that numbers of traditional sales transactions continue to increas e. The Village’s home resale inventories have decreased sharply, with a 52 percent decrease over the last year. Distressed properties such as foreclosures and short sales account for less than six percent of all sales . The budget for 2016 is four percent more than the 2015 estimated actual of $.7 8 million and 4.3 percent higher than the previous year’s budget. 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 2015, it is estimated that 12-14 single family homes of the approved 38 in the East Haven subdivision will be built generating an average of $7,000 per home in building revenue. Fisher Container Corp . is also in the process of building an additional 25,000 square foot facility in 2015. The anticipated revenue from this project is $26,000. All other revenue is anticipated to be collected on improvements to existing structures. Total buildi ng revenues and fees for 201 5 are estimated to come in 22 percent over the budget amount. Specifically, plan review, engineering, and building inspections fees accounted for $120,000 of the $151,550 that is estimated to be over the budgeted revenue. The Village has conservatively budgeted these line items, along with the others, as they are volatile due to the direct correlation between these revenue streams and market conditions. Storm Water Management Fees This is a new source of revenue for FY 2016. The system user fees will be charged to all properties in the Village for the proportionate cost of maintaining the storm water conveyance operating costs and infrastructure. $1.2 million is included in the budget. Motor Fuel Tax For FY 201 6, 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. In the past, the Village transferred 20 percent of the home rule sales tax to the MFT fund. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 est 2016 pro Telecommunication Tax History 74 Although this practice will continue in 201 6, the transfer will be credited to the Capital Projects – Streets Fund for roadway repairs. The transfer is budgeted at $749,247 . Street maintenance is a high priority for the Village of Buffalo Grove as noted in the Capital I mprovement Plan (CIP), detailed in Section 6 of this d ocument. It is assumed that elevated fuel costs, alternative energy options, av ailability 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 2016 is $13.8 million. A quarter of the revenue (2 4.6 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 Vi llage bills the services on their behalf to reduce overhead and administrative costs. The anticipated revenue for 2015 is $13.3 million. The budgeted assumption for annual consumption was 85 million gallons (7 %) less due to the cool and wet summer. The decline in water usage has appeared to stabilize over the last three years. The decreased demand was d ue 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 2016. The chart below illustrates the average monthly 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 dev elopers 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 operati ng and capital expenses. 0 200,000 400,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Annual Gallons Billed (in thousands) 75 The three year rate history is: Year Water Rate* Sewer Rate* Combined Rate* 2014 $ 4.21 $ 1.05 2015 $ 4.38 $ 1.09 $ 5.47 2016 $ 4.56 $ 1.13 $ 5.69 *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 nex t twenty years. 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 2015 budget and no changes in the rate 2016. 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 2016. The La ke County Board sets the sanitary sewer charge. The revenue collected is a pass through as the amount is remitted to Lake C ounty 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 very conservative increase was budgeted for FY 2016 over the estimated actual of $32,591, or 2.7 percent. 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 2015, the Arboretum is estimated to be 9.23 percent short of budgeted revenue. With daily paid rounds of golf being the driver for revenues, the Arboretum got off to a slow start to the 201 5 season. The extended winter prevented the course from opening as targeted and the brutal winter caused significant - 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 76 damage to the greens. The 2016 budgeted revenues do account for inclement weather patterns which influences play volume. The Arboretum does have a rate increase of $1.00 per person for cart rental fees proposed for the 2016 season. The green fee rates will not increase at either course in 201 6. Total golf course revenues at the Buffalo Grove Golf C lub in 2016 will result in a decrease of 5.84 percent as measured against the 2015 budget. In addition to being very sensitive to economic conditions and competition for discretionary spending, the Buffalo Grove Golf Club experienced the same environmental issues to begin 2015 as the Arboretum. Additionally, the high volume of rain that fell in late April through early June compromised the first half of the season at Buffalo Grove Golf Club. 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 $5.2 million. All funds other than pension funds have durations less than three years with an average expected yield of .3 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 pens ion funds are the only Village funds that purchase equity investments. The 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 8.1 percent and no change, respectively. The levy for IMRF and Social Security/Medicare will decrease by 2.3 percent. Employees contribute 9.91 percent of salary for police and 9.455 percent for firefighters. Employees contribute 4.5 per cent of salary for IMRF, 6.2 percent for Social Security and 1.45 percent for Medicare. The actuarially assumed rate of investments is 7 percent for the public safety funds and 7.5 for IMRF. The public safety pension funds are structured to be 100 percen t funded by the year 2040. IMRF has a rolling amortization period. The c urrent level of funding for the Police and Firefighters’ Pension Funds is 70.2 and 69.8. IMRF is 71.5. 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 is one large transaction accounted for within Other Revenue Sources. The Village is currently engaged in performance contracting for water meter replacements and street lightening improvements. Approximately $6 million was borrowed to cover the initial capital improvements. Those funds are in escrow and will be drawn down over the next year as project cost reimbursements. Repayment of the loan will be generated from the efficiencies in water metering and , in turn, be used to cover the principal and interest. The only new revenue for FY 2016 was noted earlier in the section, storm water management fees . 77 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 2016, 2 8.9 percent of all Village expenditures are allocated to salaries and wages, up 1 percent from 201 5. The Village’s pay ranges are evaluated each year 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 sta ted 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 54 firefighters and the Metropolitan Alliance of Police – representing 51 police officers. The current firefighter contract is not set to expire until April 30, 2017, with an optional re-opener April 30, 2016. The police union was certified in 2012 and the current contract expires on December 31, 2016. The non-represented work force will receive a 2.5 percent general wage increase. The period between 2007 and 2008 encompasses the change of the fiscal year from an April 30 year end to December 31.There are two cost of living adjustments ov er the 20 month period resulting in the wage spike. The proposed increase in wages from the 201 5 estimated actual is 3.9 percent. That increase is due to a general wage adjustment for non-repres ented employees of 2.5 percent and pay for performance range movement. Police and firefighter represented 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 cooperati ve with approximately eighty member communities. For 2016, the total amount budgeted for health insurance is $4.5 million, up over $.4 million from the 2015 budget. The Village had a challenging year with heavier claim experience than anticipated . The other component of the expenditure line item is the cost to fund 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 2007 2009 2010 2011 2012 2013 2014 2015 2016 Wage Growth - All Funds 78 The Village has been proactive in trying to contain medical costs. Those efforts will continue in 2016 with a  continued focus on wellness and disease management combined with additional health insurance premium  contributions by employees. Through 2011, all employees contributed 10 percent of the medical premium.  Beginning in 2012, employee premium contributions have increased one percent per year and conclude in 2016  with employees covering 15 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 2016.  The Lake County  sanitary sewer fees account for almost 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  Just over 14 percent of all 2016 budgeted expenditures are for capital projects and capital assets.  These items are  identified in detail in the 2016‐2020 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 three capital reserve funds and has added a fourth for infrastructure replacement 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 facilities  $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 $5,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Health Insurance Costs  continue to age maintenance costs will continue to rise. In total $1.3 million will be committed in 2016 for these three reserves. Several significant capital projects are programmed for 2016 . 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 is the Village’s reforestation program due to the Emerald Ash Borer infestation. 2016 marks the final year of the four year project. In total it is anticipated that approximately 6,300 Village owned Ash Trees will be replaced. In 2016, the removal and replacement costs are estimated to be $.5 million dollars. The third project is the Village wide Water Meter Replacement program. This program provides for water meter replacements at all customer sites, while also establishing Advanced Metering Infrastructure (AMI) to allow for remote reading of meters and increased customer service through real time data. The project is currently being evaluated as a performance contracting project with Siemens, but could also occur as a standalone project managed by the Village. This project is currently budgeted at $3 million dollars and accounts for 3 2 percent of the total capital budget in 2016. The Village will also continue to fund initiatives to replace water main and sanitary sewer system items. In 201 6 there are five infrastructure projects related to water main and sewer replacements. These projects total $2.5 million, or 26.9 percent, of the 201 6 capital project budgets . 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 2015 along with expenditure trend information. A reasonable estimation of expenditure is developed for 2016 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 p roducts 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 Purchasi ng 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 three bond issues outstanding as of January 1, 2016, all being General Obligation Bonds (Series 2012, Series 2010A, and Series 2010B). Bond descriptions and amortization schedules are listed within the Debt Profile of this section. Most Village debt service revenues are obtained through property tax. The Water and Sewer Fund provides a $200,000 operating transfer to abate a portion of the taxes attributed to the Public Service Center 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. 80 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 subsidy used to balance enterprise fund operations. There is a subsidy transfer to the Buffalo Grove Golf Club from the General Fund of $155 ,020 and another to the Arboretum Golf Club for $146,919. 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 and the need to fund reserves for future equipment purchases. 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 the 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 $75,000 to the General Fund to reimburse for work performed on behalf of the fund to manage the service contract and $.2 million will be transferred to Capital Projects – Streets to assist in roadway maintenance as refuse vehicles put a significant strain on the roadway adjacent to the curb line. Internal Service Funds The Information Technology, Central Garage, and Building Maintenance Funds are Internal Service Funds first budgeted in 2015. In FY 2016 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 utili ze 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 $1,224 ,249, Central Garage is budgeted at $1,791 ,878 , and Building Maintenance is budgeted at $1,396,763. 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. 81 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 201 6, debt service consists of $400,400 for Series 2010A, $269,138 for Series 2010B, and $137,525 for Series 2012. Total debt outstanding as of December 31, 2015 is $10.04 million. The Village has an $8 million line of credit with a balance of $3.5 million as of December 31, 2015. 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. - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 1,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Debt Schedule by Fiscal Year Series 2010A Series 2010B Series 2012 82 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, 201 5, the Village’s ratio of General Obligation Bonded Debt to EAV was 0.7 0 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 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2009 2010 2011 2012 2013 2014 2015 Ratio of G.O. Debt to EAV 83 Debt Service Schedules Overview The following summarizes the debt service obligations of the Village as of December 31, 201 5. 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: $1,805,000 Interest: $ 212,150 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: $2,235,000 Interest: $ 470,785 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: $1,530,075 84 Debt Service Schedules Annual Payments - General Obligation Debt Principal Fiscal Year Series 2010A Series 2010B Series 2012 Total 2016 335,000 190,000 - 525,000 2017 345,000 200,000 - 545,000 2018 360,000 205,000 100,000 665,000 2019 370,000 210,000 100,000 680,000 2020 395,000 220,000 100,000 715,000 2021 - 225,000 415,000 640,000 2022 - 235,000 425,000 660,000 2023 - 240,000 440,000 680,000 2024 - 250,000 450,000 700,000 2025 - 260,000 470,000 730,000 2026 - - 650,000 650,000 2027 - - 650,000 650,000 2028 - - 700,000 700,000 2029 - - 750,000 750,000 2030 - - 750,000 750,000 Total 2,130,000 2,420,000 6,000,000 10,550,000 85 Debt Service Schedules Annual Payments - General Obligation Debt Interest Fiscal Year Series 2010A Series 2010B Series 2012 Total 2016 65,400 79,138 137,525 282,063 2017 55,350 73,438 137,525 266,313 2018 45,000 66,938 137,525 249,463 2019 30,600 59,763 135,525 225,888 2020 15,800 52,413 133,525 201,738 2021 - 44,713 131,525 176,238 2022 - 36,725 123,225 159,950 2023 - 28,265 114,725 142,990 2024 - 19,385 105,925 125,310 2025 - 10,010 96,925 106,935 2026 - - 86,938 86,938 2027 - - 72,313 72,313 2028 - - 56,875 56,875 2029 - - 39,375 39,375 2030 - - 20,625 20,625 Total 285,675 554,551 1,667,601 2,507,827 86 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 2016 budget, with surplus  (deficit) shown for each fund.  Fund  Fund  Balance  January 1,  2016  2016  Revenue  2016  Expenditures  Excess of Revenue  over Expenditures  Fund  Balance  December  31, 2016  General Fund 13,725,644 41,714,743 41,670,875 43,868 13,769,512  Special Revenue Funds  Parking Lot 61,877 230,000 193,654 36,346 98,223  Motor Fuel Tax 1,673,788 1,000,000 1,000,000 ‐ 1,673,788  Debt Service Fund  Debt Service (25,486) 807,063 810,063 (3,000) (28,486)  Capital Project Funds  Facilities 1,428,356 1,428,356 ‐ 0  Streets 1,049,727 1,049,727 ‐  Enterprise Funds  Water & Sewer (cash) 2,574,982 13,834,475 14,914,247 (1,079,772) 1,495,210  Arboretum Golf Course ‐ 1,424,200 1,414,886 9314 9,314  B.G. Golf Course ‐ 1,248,569 1,242,963 5,606 5,606  Refuse Service 835,055 1,040,000 1,026,740 13,260 848,315  Internal Service Funds  Information Technology ‐ 1,224,249 1,224,249 ‐ ‐  Central Garage ‐ 1,791,878 1,791,878 ‐ ‐  Building Maintenance ‐ 1,396,763 1,396,763 ‐ ‐  Trust & Agency Funds  Police Pension 57,254,452 6,233,462 3,612,717 2,620,745 59,875,197  Firefighter Pension 50,156,718 4,629,699 2,131,491 2,498,208 52,654,926  Total All Funds 126,257,030 79,053,184 74,908,609 4,129,655 130,386,685  There are two funds that are budgeted to have greater than a ten percent variance in fund balance during 2016.  The Debt Service Fund fund balance will decrease by $3,000.00 or 11 percent.  The decrease represents the annual  bank fee charges to facilitate the debt service on behalf of the Village.  The Water Fund’s cash position will  decrease by 42 percent based on capital improvements that are scheduled in 2016.   This page intentionally left blank. 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 2016 is $41,714,743 representing a 6.86 percent increase over the 2015 budgeted amount, and a 7.39 percent increase over the 201 4 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 85.61 percent of the revenue budgeted in 2016 . A new revenue for 2016 is the Storm Water Management Fee. This fee will fund the replacement, repairs, and maintenance for the Village’s Storm Water Sewer System infrastructure. For a more detailed description on revenues and assumptions, refer to Section 4 Executive Overview. Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund 10 - Property Taxes 400.01 Corporate Levy - Cook County 527,195 539,371 552,626 552,626 - 400.02 Corporate Levy - Lake County 1,732,005 1,791,917 1,823,929 1,823,929 - 400.03 Police Protection - Cook County 126,405 127,218 133,008 133,008 909,861 400.04 Police Protection - Lake County 415,273 422,648 438,991 438,991 3,002,984 400.05 Crossing Guard Levy - Cook Cty 12,407 12,487 13,004 13,004 - 400.06 Crossing Guard Levy - Lake Cty 40,759 41,483 42,923 42,923 - 400.07 Fire Protection - Cook County 903,893 909,708 947,959 947,959 1,051,311 400.08 Fire Protection - Lake County 2,969,527 3,022,262 3,127,189 3,127,189 3,468,243 400.09 Street & Bridge Levy - Cook Cty 168,120 169,202 176,229 176,229 - 400.10 Street & Bridge Levy - Lake Cty 552,319 562,127 581,643 581,643 - 400.11 Street Lighting Levy - Cook Cty 56,999 57,366 59,748 59,748 - 400.12 Street Lighting Levy - Lake Cty 187,257 190,582 197,197 197,197 - 400.13 ESDA Levy - Cook County 3,016 3,036 3,169 3,169 - 400.14 ESDA Levy - Lake County 9,908 10,084 10,464 10,464 - 400.30 FICA Levy - Cook County - 155,583 150,834 150,834 156,113 400.31 FICA Levy - Lake County - 518,214 502,691 502,691 520,285 400.32 IMRF Levy - Cook County - 203,673 194,341 194,341 190,769 400.33 IMRF Levy - Lake County - 675,035 647,690 647,690 635,788 400.50 Police Pension - Lake County 1,698,624 1,594,352 1,735,835 1,735,835 1,877,032 400.51 Police Pension - Cook County 527,999 489,406 520,841 520,841 563,207 400.60 Fire Pension - Lake County 1,563,783 1,660,269 1,672,727 1,672,727 1,672,727 400.61 Fire Pension - Cook County 484,588 508,574 501,905 501,905 501,905 10 - Property Taxes 11,980,078 13,664,597 14,034,943 14,034,943 14,550,225 Percent Change 2016 vs 2015 Budget 3.67% 91 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 15 - Other Taxes 410.05 Local Use Tax 714,844 810,688 827,065 885,000 920,400 410.10 State Income Tax 3,953,754 4,018,406 4,101,071 4,450,000 4,628,000 410.15 Sales Tax - State 4,991,999 5,602,290 5,195,046 5,500,000 5,665,000 410.16 Sales Tax Rebate Payments (499,117) (492,271) - - - 410.20 Road & Bridge Tax Wheeling 27,201 24,986 27,000 27,000 27,000 410.25 Road & Bridge Tax Vernon 155,353 153,312 152,000 152,000 152,000 410.30 Foreign Fire Insurance Tax - - - - - 410.50 Replacement Tax - 6,407 - - - 415 Taxes - Local - - - - - 415.05 Sales Tax - Home Rule 3,667,414 3,939,275 3,396,028 3,639,453 3,748,636 415.10 Home Rule Rebate (356,547) (593,322) - - - 415.15 Real Estate Transfer Tax 760,164 790,819 787,500 790,000 821,600 415.20 Hotel/Motel Tax 110,836 199,656 140,000 140,000 144,200 415.25 Simplified Telecommunications Tx 1,943,811 1,679,653 1,875,000 1,672,785 1,639,327 415.30 Prepared Food & Beverage Tax 742,468 728,515 780,740 725,000 746,750 415.35 Electricity Use Tax 1,681,745 1,628,090 1,640,000 1,650,000 1,650,000 415.40 Natural Gas Use Tax 1,109,799 1,097,928 1,000,000 1,020,000 1,020,000 415.45 Para Mutual Tax - - - - - 415.50 Auto Rental Tax 10,574 955 - - - 15 - Other Taxes 19,014,296 19,595,388 19,921,450 20,651,238 21,162,913 Percent Change 2016 vs 2015 Budget 6.23% 20 - Intergovernmental Revenue 440.05 Police Training - - - - 440.10 Fire Training - - - - - 440.15 District #214 Officer 151,423 234,999 95,195 90,130 90,130 440.20 Various Govts Fuel 82,393 88,665 87,000 65,000 70,000 440.25 D.A.R.E. Officer - 13,206 88,443 87,254 89,780 440.30 Police Grant Program - - - - - 440.35 Park District IT Support 12,715 23,080 - - - 440.40 Crossing Guard - 19,865 32,000 32,726 33,558 440.45 GMAT/BATTLE - 31,000 124,000 34,000 - 440.46 Reimb - DEA Overtime - - - - - 440.50 Reimb - ICE Overtime - 5,631 8,500 6,810 5,789 440.90 Miscellaneous - - - 4,000 21,866 20 - Intergovernmental Revenue 246,531 416,445 435,138 319,920 311,123 Percent Change 2016 vs 2015 Budget -28.50% 25 - Licenses 420.05 Business Licenses 103,742 35,890 100,000 100,000 100,000 420.10 Tobacco Licenses 1,875 1,875 1,800 1,800 1,800 420.15 Vending Machine Licenses 1,630 4,680 4,650 3,150 3,150 92 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 420.20 Chauffer Licenses 2,130 1,560 2,100 1,450 1,450 420.25 Alarm Permits 29,305 9,920 30,000 27,000 27,000 420.50 All Other Licenses 8,430 11,197 9,000 9,000 9,000 425.05 Class A 50,208 50,000 50,000 50,000 50,000 425.10 Class B 21,472 20,700 22,000 22,000 22,000 425.15 Class C 41,050 28,750 27,500 27,500 27,500 425.20 Class D 6,200 3,600 5,400 5,400 5,400 425.25 Class E 6,000 9,500 10,500 10,500 10,500 425.30 Class F 2,000 4,000 4,000 4,000 4,000 425.50 Other 12,440 17,740 16,000 16,000 16,000 430 Animal Licenses - - - - - 430.05 Dogs 7,645 6,695 8,000 6,700 6,700 430.10 Cats 495 305 650 310 310 25 - Licenses 294,622 207,312 291,600 284,810 284,810 Percent Change 2016 vs 2015 Budget -2.33% 30 – Permits 435.05 Development Building Permits 32,935 44,278 35,000 40,000 35,000 435.10 Engineering Fees 56,722 79,988 85,000 85,000 45,000 435.15 Contractor Registration 79,750 86,770 80,000 83,000 83,000 435.20 Plan Review Fees 68,418 88,961 60,000 80,000 60,000 435.25 Filing Fees 3,650 4,400 2,500 5,300 2,500 435.30 Annexation Fees - 6,300 - 13,300 - 435.35 Building Inspection Fees 231,338 289,597 160,000 340,000 200,000 435.40 Plumbing Inspection Fees 39,012 41,697 30,000 36,000 30,000 435.45 Electrical Inspection Fees 53,369 63,933 45,000 55,000 45,000 435.50 Mechanical Inspection Fees 20,750 16,975 17,000 20,000 18,000 435.55 Sign Inspection Fees 8,772 7,130 7,000 7,000 7,000 435.60 Elevator Inspection Fees 31,120 29,890 35,000 30,000 30,000 435.65 Fire Suppression Inspection Fees 6,673 1,894 1,500 5,300 2,500 435.70 Rental Inspection Fees 89,633 145,935 103,000 103,000 103,000 435.71 Other Non -Business Lic & Permits 41,204 46,488 45,000 45,000 45,000 435.82 Inspections- Long Grove - - - - - 30 - Permits 763,345 954,235 706,000 947,900 706,000 Percent Change 2016 vs 2015 Budget 0.00% 35 - Fines and Fees 455.05 Court Fines Cook 14,626 9,525 14,750 12,000 12,000 455.10 Court Fines Lake 569,965 473,149 505,000 420,000 400,000 455.15 Village Ordinance Fines 52,250 65,022 150,000 90,180 92,000 455.20 Alarm Service Calls 18,570 48,425 35,000 31,000 31,000 455.25 Accident Reports 4,850 8,035 6,503 6,810 5,789 455.30 Fingerprint Fees - - 2,040 3,265 2,000 93 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 455.35 Ambulance Transport Fees 740,228 824,428 775,000 886,512 886,512 455.40 Subpoena Fees 358 50 250 250 250 455.45 DUI Assessments 26,672 55,119 55,000 26,913 22,876 455.50 Impounding Fees 68,400 128,118 142,800 119,000 119,850 455.60 Administrative Bail Fee 2,900 7,760 7,395 7,395 7,395 455.65 Special Rescue Billing - 3,540 80,000 40,000 40,000 455.85 Access & Review Criminal History - - - - - 35 - Fines and Fees 1,498,820 1,623,171 1,773,738 1,643,325 1,619,672 Percent Change 2016 vs 2015 Budget -8.69% 40 - Charges for Services 441.30 Construction Water - 488 - - - 40 - Charges for Services - 488 - - - Percent Change 2016 vs 2015 Budget 0.00% 45 - Interest Income 450.05 Savings 797 - 800 200 200 450.10 Investment Pool 2,051 795 250 750 750 450.15 Money Market (1,887) 236 - - - 450.20 CD's 52,307 52,959 45,000 40,000 35,000 450.25 Securities 1,954 11,943 14,000 14,000 14,000 450.30 Amortization -Security Disc/Prem - - - - - 450.35 Gain/Loss Security Transaction - - - - - 450.40 Annuity Gain/Loss - - - - - 450.45 Stock Dividend - - - - - 45 - Interest Income 55,223 65,933 60,050 54,950 49,950 Percent Change 2016 vs 2015 Budget -16.82% 50 - Miscellaneous Revenue 465.05 Cable Franchise Fees 765,825 788,706 770,000 824,000 865,200 465.07 Storm Water Management Fees - - - - 1,200,000 465.10 Buffalo Grove Days 186 295 - - - 465.12 Symphonic Band - 12,013 16,200 12,000 12,000 465.15 Other Community Festivals - - - - - 465.20 Facility Rental 3,850 3,850 3,850 3,850 3,850 465.25 Ins Property Damage Recovery - - - - - 465.26 Ins Worker's Comp Recovery - - - - - 465.27 Ins Excess Loss Recovery - - - - - 94 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 465.30 Farmers Market - 6,230 - - - 465.35 Sales - Fixed Assets - - - - - 465.50 Misc Reimbursements/Refunds 712 (8,211) - - - 465.51 Miscellaneous Donations - - - - - 465.52 Miscellaneous Forfeitures - - - - - 465.57 Reserve for Capital Replace- Tech - 142,600 - - - 465.58 Reserve for Capital Replace- Bldg - 203,110 - - - 465.60 Central Garage Reimbursements 87,338 84,607 90,000 - - 465.65 Grants - 212,500 - - - 465.70 Recycling Proceeds 33,309 34,538 37,000 35,000 35,000 465.75 Auction Proceeds - - - - - 465.90 Miscellaneous Income 37,579 70,843 46,000 170,000 50,000 472 Capital Contributions - - - - - 50 - Miscellaneous Revenue 928,799 1,551,081 963,050 1,044,850 2,166,050 Percent Change 2016 vs 2015 Budget 124.92% 55 - Operating Transfers 460.05 Interfund Transfers In 765,000 765,000 852,500 852,500 864,000 55 - Operating Transfers 765,000 765,000 852,500 852,500 864,000 Percent Change 2016 vs 2015 Budget 1.35% Revenues Total 35,546,713 38,843,649 39,038,469 39,834,436 41,714,743 Percent Change 2016 vs 2015 Budget 6.86% 95 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 c onsent 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. Legal Division The Village receives legal services from an outside firm that include specific research, ordinance preparation, annexation agreements, contracts and litigation. Village Attorney • Provides legal service and advice to the Village staff, Village Board and Village Commissions, Committees and Boards • Attends Village Board meetings, Planning and Zoning Commission public hearings • I s available for staff conferences as needed Village Prosecutor • On retainer to represent Village interests in court cases 50 Raupp Boulevard, Buffalo Grove, IL 60089 | www.vbg.org | (847) 459-2525  Department Structure Village Manager Legal Deputy Village Manager OVM Staff & Communications Information Technology Golf 97 2016 Staffing Summary For 2016, there are a few staffing changes in the Office of the Village Manager. With the hiring of a Community Development Director in 2015, the Community Development function has been moved out of the Office of the Village Manager into its own department. Additionally, the Communications Manager position will be outsourced in 2016. Office of the Village Manager/ Administration FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Administrative Intern 0 1 0 0 0 0 Communications Manager * 0 0 1 0 0 0 Deputy Village Manager 1 0 1 0 1 0 Management Analyst 1 0 1 0 1 0 Secretary 1 0 0 0 0 0 Village Manager 1 0 1 0 1 0 Total 4 1 4 0 3 0 Full & Part -Time Total 5 4 3 Strategic Priorities and Measures Office of the Village Manager Strategic Priorities Measure Averaged Baseline Q1 Q2 Q3 Service Optimization No Measure Identified N/A N/A N/A Organizational Culture Total Number of Unique Visitors to Facebook Page 1,267 1,004 1,100 1,697 Organizational Culture Unique People who Have Seen Village Content 60,233 59,254 75,889 45,557 Revenue Growth No Measure Identified N/A N/A N/A N/A Economic Development No Measure Identified N/A N/A N/A N/A Infrastructure Stability No Measure Identified N/A N/A N/A N/A Village staff is in the process of implementing a performance management program. During the first year of the program, departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. 98 Budget Summary Legislative FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget Personal Services 33,000 33,000 33,000 Personal Benefits 9,426 34,545 35,525 Operating Expenses 8,183 5,100 7,700 Other Services 45,361 44,600 46,800 Other Expenses 24,533 18,500 27,500 Capital Outlay - 267 70,000 Total 120,502 136,012 220,525 Budget Variance Legislative Line Item Number Account Description Percentage Change Dollar Amount Change Description of Change 505.10 Professional Training (100.00%) (500) 525.25 Plan Commission New 4,000 Minutes for meetings 525.35 Arts Commission (80.00%) (4,000) Dec reased Arts Festival c ontract 525.55 Farmer's Market 400.00% 2,000 Credit card fees 580.05 All Other Expenses (100.00%) (50) Reduced based on trends 555.10 Office and Other Equipment New 70,000 Audio for Council Chambers 99 120,502 136,012 220,525 Total Legislative FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget 100 Description 2013 Actual 2014 Actual 2015 Adopted 2015 Est Actual 2016 Budget Fund: 100 Department: 10 - Legislative 10 - Salaries 500.10 Part Time - - - - - 500.25 Elected Officials 33,000 33,000 33,000 33,000 33,000 10 - Salaries 33,000 33,000 33,000 33,000 33,000 Percent Change 2016 vs. 2015 Budget 0.00% 15 - Taxes and Benefits 505.10 Professional Training 49 605 500 20 - 505.15 Dues & Memberships 29,626 6,296 32,000 32,000 33,000 505.75 Employer's Contribution FICA - 2,046 2,173 2,046 2,046 505.80 Employer's Contribution IMRF - - - - - 505.85 Employer's Contribution Medicare - 479 486 479 479 15 - Taxes and Benefits 29,675 9,426 35,159 34,545 35,525 Percent Change 2016 vs. 2015 Budget 1.04% 25 - Operating Expenses 510.02 Telephone 183 - - - - 510.04 Travel 17 71 100 - 100 510.08 Reception & Community Affairs 7,170 8,112 7,500 5,000 7,500 510.14 Subscriptions & Publications - - - - - 510.21 IT Internal Svc Contribution - - - - - 510.40 Supplies - Office 67 - 100 100 100 535.01 Facilities Building Mnt Internal Svc - - - - - 545.01 Vehicles Central Garage Internal Svc - - - - - 25 - Operating Expenses 7,437 8,183 7,700 5,100 7,700 Percent Change 2016 vs. 2015 Budget 0.00% 35 - Other Services 525.05 Blood Commission 164 84 300 200 300 525.10 Buffalo Grove Days - - - - - 525.15 Fire and Police Commission - - - - - 525.20 Fireworks for the Fourth 20,000 21,000 21,500 21,500 22,000 525.25 Plan Commission - - - 2,500 4,000 525.30 Residents with Disabilities (100) - 700 700 700 525.35 Arts Commission 5,605 5,660 5,000 1,000 1,000 525.40 Zoning Board of Appeals - 57 - - - 525.45 Village Board 339 192 - - - 525.50 Symphonic Band 4,702 14,047 16,200 16,200 16,200 101 Description 2013 Actual 2014 Actual 2015 Adopted 2015 Est Actual 2016 Budget 525.55 Farmer's Market (3,000) 4,322 500 2,500 2,500 525.95 Other Boards/Commissions 540 - 100 - 100 35 - Other Services 28,251 45,361 44,300 44,600 46,800 Percent Change 2016 vs. 2015 Budget 5.64% 50 - Other Expenses 580.05 All Other Expenses 1,031 - 50 - - 580.10 Consultant Fees 1,109 3,200 5,000 - 5,000 580.45 Cable Television Programming 18,937 17,030 19,500 15,500 19,500 580.50 Senior Taxi Program 3,863 4,303 3,000 3,000 3,000 50 - Other Expenses 24,939 24,533 27,550 18,500 27,500 Percent Change 2016 vs. 2015 Budget -0.18% 55 - Capital Outlay 555.10 Office and Other Equipment 1,121 - - 267 70,000 55 - Capital Outlay 1,121 - - 267 70,000 Percent Change 2016 vs. 2015 Budget 0.00% Department Total: 10 - Legislative 124,422 120,502 147,709 136,012 220,525 Percent Change 2016 vs. 2015 Budget 49.30% 102 Budget Summary  Office of the Village Manager   FY 2014 Actual FY 2015 Est. Actual FY 2016 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     888,746 972,124 695,127 Total Office of the Village Manager FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget 104 Description 2013 Actual 2014 Actual 2015 Adopted 2015 Est Actual 2016 Budget Fund: 100- General Department: 15 - Office of the Village Manager 10 - Salaries 500.05 Full Time 546,695 486,486 635,528 600,000 396,834 500.10 Part Time 106,747 46,244 - - - 500.35 Overtime 4,049 2,327 - - - 500.40 Longevity 1,400 1,000 - 400 500 10 - Salaries 658,891 536,057 635,528 600,400 397,334 Percent Change 2016 vs. 2015 Budget -37.48% 15 - Taxes and Benefits 505.05 Group & Medical Life 88,824 73,246 114,000 114,000 63,000 505.10 Professional Training 2,167 5,794 6,500 6,500 6,500 505.15 Dues & Memberships 8,932 6,978 8,800 8,000 8,000 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 27,890 34,965 34,965 18,386 505.80 Employer's Contribution - IMRF - 78,201 85,161 85,161 55,110 505.85 Employer's Contribution Medicare - 7,763 9,215 9,215 5,761 15 - Taxes and Benefits 99,923 199,873 258,641 257,841 156,757 Percent Change 2016 vs. 2015 Budget -39.39% 25 - Operating Expenses 510.02 Telephone 2,553 3,557 2,250 2,250 2,250 510.03 Postage - - - - - 510.04 Travel 1,740 2,227 1,200 1,200 1,200 510.06 Per Diem Allowance 230 27 500 100 100 510.08 Reception & Community Affairs 1,656 2,214 850 1,500 1,500 510.10 Maintenance Contracts 21,337 19,424 - - - 510.14 Subscriptions & Publications 1,382 1,536 1,550 1,550 1,550 510.16 Printing 1,000 - 500 400 400 510.18 Village Newsletter 33,632 23,349 33,000 33,000 33,000 510.21 IT Internal Svc Contribution - - 36,613 30,838 20,474 510.40 Supplies - Office 1,251 710 2,000 1,500 2,000 535.01 Facilities Building Mnt Internal Svc - - 24,262 19,587 26,289 545.01 Vehicles Central Garage Internal Svc - - 3,799 2,515 1,165 25 - Operating Expenses 64,781 53,044 106,524 94,440 89,928 Percent Change 2016 vs. 2015 Budget -15.58% 30 - Contractual Services 515.05 IRMA Premium - 1,023 1,023 1,023 1,023 515.10 Unemployment Insurance 800 800 800 800 800 515.15 IRMA Deductible - Worker's Comp - - 219 - 219 515.20 IRMA Deductible - Non Wrker's Co - - 146 - 146 30 - Contractual Services 800 1,823 2,188 1,823 2,188 Percent Change 2016 vs. 2015 Budget 0.00% 105 Description 2013 Actual 2014 Actual 2015 Adopted 2015 Est Actual 2016 Budget 40 - Repairs and Maintenance 545.05 Vehicles Gasoline - - - - - 545.10 Vehicles Diesel Fuel - - - - - 545.15 Vehicles Automotive Parts - - - - - 545.20 Vehicles Garage Labor - - - - - 545.25 Vehicles Lubricants - - - - - 545.30 Vehicles Garage Overhead - - - - - 545.35 Vehicles Body Work - - - - - 545.40 Vehicles Contractual Auto Services - - - - - 550 Other - - - - - 550.05 Other Department Equipment 135 - 500 - 500 40 - Repairs and Maintenance 135 - 500 - 500 Percent Change 2016 vs. 2015 Budget 0.00% 50 - Other Expenses 580 All Other Expense - - - - - 580.05 All Other Expenses 1,631 1,279 1,800 1,000 1,800 580.10 Consultant Fees - 4,113 15,000 10,000 40,000 50 - Other Expenses 1,631 5,393 16,800 11,000 41,800 Percent Change 2016 vs. 2015 Budget 148.81% 55 - Capital Outlay 555 Capital Equipment - - - - - 555.10 Office and Other Equipment 18,318 43,767 3,647 - - 555.30 Reserve for Capital Replacement - - - - - 555.40 Reserve for Technology 22,009 43,054 1,250 1,250 1,250 555.50 Reserve for Buildings - 5,370 5,370 5,370 5,370 55 - Capital Outlay 40,327 92,191 10,267 6,620 6,620 Percent Change 2016 vs. 2015 Budget -35.52% Department Total: 15 - Office of the Village Manager 866,487 888,381 1,030,448 972,124 695,127 Percent Change 2016 vs. 2015 Budget -32.54% 106 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 commi tted 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 establish ed 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 i nsurance a dministration) 2. Financial a dministration, planning, a nalysis and budgeting 3. General s ervices and l icense a dministration 4. Utility billing 5. Debt collection coordination 6. Bookkeeping, a ccounting and a uditing 7. Electronic payment management 8. Statutory a dministrative s ervices 9. Centralized p urchasing 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. 50 Raupp Boulevard, Buffalo Grove, IL 60089 | www.vbg.org | (847) 459-2500 107 Department Structure Village Manager Director of Finance/Treasurer Purchasing Manager Deputy Finance Director Utility Billing Accountant Customer Service Clerk Acccounts Payable Payroll 108   2016 Staffing Summary  For 2016, the personnel counts reflect the strategic move to a combined customer service counter for Community  Development and Finance. To improve customer service, a dedicated customer service representative will be hired  and will work exclusively at the front counter. Employees designated as FT .5 are shared between departments.     Finance & General Services FY 2014 FY 2015 FY 2016    FT PT FT PT FT PT  Accountant 1 0 1 0 1 0  Deputy Clerk 0 0 0 0 .5 0  Deputy Finance Director 1 0 1 0 1 0  Cashier 0 0 0 0 .5 0  Clerk II 2 0 2 0 2 0  Clerk III 2 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  Secretary 1 0 0 0 0 0  Total 10 0 8 0 9 0  Full & Part‐Time Total  10 8 9    Strategic Priorities and Measures   Finance Department  Strategic Priorities Measure Averaged  Baseline Q1 Q2 Q3  Service Optimization Percent of Revenue Budget Collected 43.5 21.4 53.5 55.6  Service Optimization General Fund Expenditures Per Capita $455.58 $252.91 $449.87 $663.97  Service Optimization Average Number of Bids Received 4 4 4.75 3.25  Organizational Culture  No Measure Identified N/A N/A N/A N/A  Revenue Growth No Measure Identified N/A N/A N/A N/A  Economic  Development No Measure Identified N/A N/A N/A N/A  Infrastructure Stability No Measure Identified N/A N/A N/A N/A  Village staff is in the process of implementing a performance management program.  During the first year of the  program departments are establishing baseline performance.  This baseline is currently determined by averaging  the past four quarters of performance data.     2016 Budget Summary Finance and General Services FY 2014 FY 2015 Est. Actual FY 2016 Budget Personal Service 637,576 658,245 737,563 Personal Benefits 266,134 291,900 345,111 Operating Expenses 196,365 216,542 238,506 Contractual Services 1,367 1,855 1,855 Other Services 49,803 40,000 35,000 Repairs and Maintenance 613 1,000 2,000 Other Expenses 28,930 33,000 33,000 Capital Outlay 8,660 8,660 8,660 Total 1,189,447 1,251,202 1,401,695 2016 Budget Variances Finance and General Services Line Item Number Description Percent Change Dollar Amount Change Description of Change 500.05 Full Time 10.69% 69,918 Additional employee budgeted 500.35 Overtime (35.71%) (2,500) Reduction due to new employee 500.40 Longevity 45.45% 1,000 Employee milestones 505.05 Group & Medical Life 24.34% 37,000 Additional employee budgeted 505.10 Professional Training 50.00% 2,500 Additional staff training 505.15 Dues & Memberships 12.55% 155 Additional membership 505.80 Employer's Contribution - IMRF 10.09% 8,846 Additional employee budgeted 510.04 Travel 66.67% 1,000 Additional staff training 510.08 Reception & Community Affairs (33.33%) (200) Reduced based on historical usage 510.10 Maintenance Contracts (77.27%) (34,000) Lease moved to IT fund 510.16 Printing (37.50%) (3,000) New contract 510.21 IT Internal Svc Contribution 32.35% 13,536 Recalibrated cost basis 545.01 Vehicles Central Garage Internal Svc New 1,165 Recalibrated cost basis 580.05 All Other Expenses 420.00% 10,500 Credit card fees 580.10 Consultant Fees (20.00%) (5,000) Reduction based on usage 110 1,189,447 1,251,202 1,401,695 Total Finance Department FY 2014 FY 2015 Est. Actual FY 2016 Budget 111 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Expenditure Department: 30 - Finance 10 - Salaries 500.10 Part Time 36,868 579 - - - 500.25 Elected Officials 6,000 6,000 6,000 6,000 6,000 500.35 Overtime 8,444 8,386 7,000 2,700 4,500 500.40 Longevity 4,800 4,200 2,200 3,200 3,200 10 - Salaries 700,860 637,576 669,145 658,245 737,563 Percent Change 2016 vs. 2015 Budget 10.22% 15 - Taxes and Benefits 505.05 Group & Medical Life 153,889 127,891 152,000 152,000 189,000 505.10 Professional Training 2,209 2,498 5,000 4,500 7,500 505.15 Dues & Memberships 1,035 1,880 1,235 1,570 1,390 505.45 ICMA Deferred Compensation - - - - - 505.50 Employee Recognition - - - - - 505.75 Employer's Contribution - FICA - 37,406 38,229 37,847 40,660 505.80 Employer's Contribution - IMRF - 87,232 87,629 86,611 96,475 505.85 Employer's Contribution Medicare - 9,226 9,483 9,372 10,086 15 - Taxes and Benefits 157,133 266,134 293,576 291,900 345,111 Percent Change 2016 vs. 2015 Budget 17.55% 25 - Operating Expenses 510.02 Telephone 20,896 7,743 10,000 10,000 10,000 510.03 Postage 74,485 62,078 70,000 70,000 70,000 510.04 Travel 1,737 2,805 1,500 1,500 2,500 510.06 Per Diem Allowance 247 148 500 100 500 510.08 Reception & Community Affairs 678 681 600 350 400 510.10 Maintenance Contracts 43,311 60,814 44,000 10,000 10,000 510.12 Equipment Rental 3,267 3,267 3,647 3,468 3,468 510.14 Subscriptions & Publications 337 55 150 - 150 510.16 Printing 10,255 14,906 8,000 10,000 5,000 510.21 IT Internal Svc Contribution - - 41,843 35,243 55,379 112 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.28 Audit Fees 40,400 36,225 42,400 46,000 42,400 510.40 Supplies - Office 5,303 7,642 7,500 7,500 7,500 535.01 Facilities Building Mnt Internal Svc - - 27,727 22,381 30,044 545.01 Vehicles Central Garage Internal Svc - - - - 1,165 25 - Operating Expenses 200,916 196,365 257,867 216,542 238,506 Percent Change 2016 vs. 2015 Budget -7.51% 30 - Contractual Services 515.05 IRMA Premium - 1,367 1,367 1,367 1,367 515.10 Unemployment Insurance 960 - - - - 515.15 IRMA Deductible - Worker's Comp - - 293 293 293 515.20 IRMA Deductible - Non Wrker's Co - - 195 195 195 30 - Contractual Services 960 1,367 1,855 1,855 1,855 Percent Change 2016 vs. 2015 Budget 0.00% 35 - Other Services 525 Commission & Committees - - - - - 525.10 Buffalo Grove Days 32,264 49,803 32,000 40,000 35,000 35 - Other Services 32,264 49,803 32,000 40,000 35,000 Percent Change 2016 vs. 2015 Budget 9.38% 40 - Repairs and Maintenance 545.05 Gasoline - - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Other - - - - - 550.05 Other Department Equipment 242 613 2,000 1,000 2,000 40 - Repairs and Maintenance 242 613 2,000 1,000 2,000 Percent Change 2016 vs. 2015 Budget 0.00% 113 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 50 - Other Expenses 580 All Other Expense - - - - - 580.05 All Other Expenses 2,030 3,486 2,500 13,000 13,000 580.10 Consultant Fees 26,085 25,444 25,000 20,000 20,000 50 - Other Expenses 28,114 28,930 27,500 33,000 33,000 Percent Change 2016 vs. 2015 Budget 20.00% 55 - Capital Outlay 555.10 Office and Other Equipment 406 - - - - 555.40 Reserve for Technology - 1,500 1,500 1,500 1,500 555.50 Reserve for Buildings - 7,160 7,160 7,160 7,160 55 - Capital Outlay 406 8,660 8,660 8,660 8,660 Percent Change 2016 vs. 2015 Budget 0.00% Department Total: 30 - Finance 1,120,895 1,189,447 1,292,603 1,251,202 1,401,695 Percent Change 2016 vs. 2015 Budget 8.44% 114 Human Resources Department The Department of Human Resources is responsible for a variety of elements related to 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 negotiatio n 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 r esources issues; employee recognition programs; s taff liaison to the Board of Fire and Police Commissioners; a ppointed member of the Fire Pension Board and delegate to both the Intergovernmental Personnel Benefits Cooperative (IPBC) and the Intergovernmental Risk Management Agency (IRMA). 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 Compens ation 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 an d promotion of Police Lieutenants, Police Sergeants, and Fire Lieutenants 50 Raupp Boulevard, Buffalo Grove, IL 60089 | www.vbg.org | (847) 459-2549  Department Structure Village Manager Human Resources Risk Management Employee Benefits and Compensation Labor/Employee Relations 116 2016 Staffing Summary There are no staffing changes for 2016. Human Resources FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Director of Human Resources 1 0 1 0 1 0 Management Analyst 0 0 1 0 1 0 Secretary 0 1 0 0 0 0 Total 1 1 2 0 2 0 Full & Part -Time Total 2 2 2 Strategic Priorities and Measures Human Resources Strategic Priorities Measure Averaged Baseline Q1 Q2 Q3 Service Optimization No Measure Identified N/A N/A N/A Organizational Culture Total Number of Active Employees 256 238 250 281 Revenue Growth No Measure Identified N/A N/A N/A N/A Economic Development No Measure Identified N/A N/A N/A N/A Infrastructure Stability No Measure Identified N/A N/A N/A N/A Village staff is in the process of implementing a performance management program. During the first year of the program departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. Budget Summary Human Resources FY 2014 FY 2015 Est. Actual FY 2016 Budget Personal Service 131,393 310,730 326,226 Personal Benefits 113,848 170,676 182,386 Operating Expenses 24,420 27,500 51,007 Contractual Services 48,975 41,863 76,725 Other Services 30,167 20,000 30,000 Other Expenses 30,958 1,000 1,500 Capital Outlay 16,759 12,061 12,745 Total 396,519 583,830 680,589 117 Budget Variances  Human Resources  Line Item  Number Description Percent  Change  Dollar Amount  Change Description of Change  505.05 Group & Medical Life 10.53% 4,000 Health insurance premium increase  505.10 Professional Training 16.00% 1,600 HR Certification Course  505.40 Tuition  Reimbursement 233.33% 35,000 Expanded employee  reimbursement program  505.50 Employee Recognition 23.08% 1,500 Expand program  510.06 Per Diem Allowance (20.00%) (100) Reduction in travel days  510.10 Maintenance  Contracts New 8,500 NeoGov and Applicant tracking  510.21 IT Internal Svc  Contribution 37.95% 3,970 Recalibrated cost basis  510.22 Recruitment Charges (28.57%) (4,000) Less recruitment anticipated in  2016  515.05 IRMA Premium 227.38% 980 Increase based on historical use  520.40 Special Counsel (16.67%) (15,000) Less labor negotiation hours in 2016  555.10 Office and Other  Equipment (36.76%) (6,800) Implementation costs no longer  needed        396,519 583,830 680,589 Total Human Resources FY 2014 FY 2015 Est. Actual FY 2016 Budget  Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Expenditure Department: 35 - Human Resources 10 - Salaries 500.05 Full Time 129,770 130,593 309,930 309,930 325,426 500.10 Part Time - - - - - 500.40 Longevity 600 800 800 800 800 10 - Salaries 130,370 131,393 310,730 310,730 326,226 Percent Change 2016 vs. 2015 Budget 4.99% 15 - Taxes and Benefits 505.05 Group & Medical Life 28,506 63,612 38,000 38,000 42,000 505.10 Professional Training 1,768 2,804 10,000 10,000 11,600 505.15 Dues & Memberships 749 1,134 1,600 1,600 1,600 505.40 Tuition Reimbursement 13,967 8,041 15,000 50,000 50,000 505.45 ICMA Deferred Compensation - - - - - 505.50 Employee Recognition 5,183 7,129 6,500 6,500 8,000 505.75 Employer's Contribution - FICA - 7,566 18,551 18,551 19,208 505.80 Employer's Contribution - IMRF - 21,667 41,531 41,531 45,248 505.85 Employer's Contribution Medicare - 1,893 4,494 4,494 4,730 15 - Taxes and Benefits 50,172 113,848 135,676 170,676 182,386 Percent Change 2016 vs. 2015 Budget 34.43% 25 - Operating Expenses 510.02 Telephone 1,061 1,680 1,000 1,000 1,000 510.04 Travel 1,138 2,100 1,600 2,000 510.06 Per Diem Allowance 450 200 500 400 400 510.10 Maintenance Contracts - - - - 8,500 510.14 Subscriptions & Publications 1,731 1,040 3,000 3,000 3,000 510.21 IT Internal Svc Contribution - - 10,461 8,811 14,431 510.22 Recruitment Charges 40,214 16,538 14,000 5,200 10,000 510.24 CDL Testing 2,554 2,409 2,000 1,400 2,000 510.40 Supplies - Office 570 38 1,000 500 1,000 535.01 Building Mnt Internal Svc - - 6,932 5,589 7,511 545.01 Central Garage Internal Svc - - - - 1,165 25 - Operating Expenses 47,718 24,420 40,993 27,500 51,007 Percent Change 2016 vs. 2015 Budget 24.43% 30 - Contractual Services 515.05 IRMA Premium 426,658 1,512 431 1,411 1,411 515.10 Unemployment Insurance 160 160 160 160 160 515.15 IRMA Deductible - Worker's Comp - - 92 92 92 119 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 515.20 IRMA Deductible - Non Wrker's Co - - 62 7,200 62 520 Legal Services - - - - - 520.40 Special Counsel 66,337 47,303 90,000 33,000 75,000 30 - Contractual Services 493,156 48,975 90,745 41,863 76,725 Percent Change 2016 vs. 2015 Budget -15.45% 35 - Other Services 525.15 Fire and Police Commission 1,302 30,167 30,000 20,000 30,000 35 - Other Services 1,302 30,167 30,000 20,000 30,000 Percent Change 2016 vs. 2015 Budget 0.00% 50 - Other Expenses 580.05 All Other Expenses 1,997 536 1,500 1,000 1,500 580.65 IRMA Deductible - Worker's Comp 127,395 22,138 - - - 580.66 IRMA Deductible - Non Wrkr's Cmp 104,952 8,284 - - - 50 - Other Expenses 234,345 30,958 1,500 1,000 1,500 Percent Change 2016 vs. 2015 Budget 0.00% 55 - Capital Outlay 555.10 Office and Other Equipment 92 15,714 18,500 11,016 11,700 555.40 Reserve for Technology - 150 150 150 150 555.50 Reserve for Buildings - 895 895 895 895 55 - Capital Outlay 92 16,759 19,545 12,061 12,745 Percent Change 2016 vs. 2015 Budget -34.79% Department Total: 35 - Human Resources 957,154 396,519 629,189 583,830 680,589 Percent Change 2016 vs. 2015 Budget 8.17% 120 Budget Summary Legal FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget Operating Expenses - 659 - Contractual Services 325,929 292,500 299,050 Total 325,929 293,159 299,050 Budget Variances Legal Line Item Number Description Percent Change Dollar Amount Change Description of Change 510.21 IT Internal Svc (100.00%) (782) Recalibrated cost basis 520.25 Legal Notices 19.05% 1,600 Administrative Adjudication 520.30 Litigation Reserve 185.71% 7,800 Administrative Adjudication 325,929 293,159 299,050 Total Legal FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget 121 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Expenditures Department: 20 - Legal 25 - Operating Expenses 510.21 IT Internal Svc - - 782 659 - 535.01 Facilities Building Mnt Internal Svc - - - - - 545.01 Vehicles Central Garage Internal Svc - - - - - 25 - Operating Expenses - - 782 659 - Percent Change 2016 vs. 2015 Budget -100.00% 30 - Contractual Services 520.05 Retainer Fee 50,000 50,000 50,000 50,000 50,000 520.10 Prosecutor Fee 73,345 69,260 68,000 68,000 68,000 520.15 Attorney's Fees 153,468 190,472 152,000 152,000 152,000 520.20 Recording Fees 450 333 200 - 200 520.25 Legal Notices 8,520 8,392 8,400 10,000 10,000 520.30 Litigation Reserve 15,962 6,580 4,200 12,000 12,000 520.35 Messenger Fees - - 350 - 350 520.40 Special Counsel - - 1,000 - 1,000 520.45 Legal Reimburseables 79 891 5,500 500 5,500 30 - Contractual Services 301,824 325,929 289,650 292,500 299,050 Percent Change 2016 vs. 2015 Budget 3.25% Department Total: 20 - Legal 301,824 325,929 290,432 293,159 299,050 Percent Change 2016 vs. 2015 Budget 2.97% 122 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 Vision of this organization is to meet the mission of the organization through “Service, Adaptability, Fairness, Empowerment, and Respect.” 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 al l fires in the Village. In 2014, The Fire Department responded to over 5,000 calls for service of which 3,056 were EMS and 2,060 were fire and rescue related . This equates to 59.7 percent EMS / 40.3 percent fire split. 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 large programs the members of the Buffalo Grove Fire Departmen t conducted school drills and attended many block parties and special events throughout the year. The coordination of the many Emergency Management Agency functions including Mobile Comm and CERT are now the responsibility of the Fire Department. 1051 Highland Grove Drive, Buffalo Grove, IL 60089 | www.vbg.org | (847) 537-0995 123 Village Manager Fire Chief 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 Department Structure 124 2016 Staffing Summary One part time position was eliminated through attrition Strategic Priorities and Measures Fire/EMA Department Strategic Priorities Measure Averaged Baseline Q1 Q2 Q3 Service Optimization Incident Loss The department’s performance management software vendor went out of business during Q2. Therefore, there is no consistent data at this time Service Optimization First Unit Arrival Response Time Service Optimization Overtime Costs Organizational Culture No Measure Identified N/A N/A N/A N/A Revenue Growth No Measure Identified N/A N/A N/A N/A Economic Development No Measure Identified N/A N/A N/A N/A Infrastructure Stability No Measure Identified N/A N/A N/A N/A Village staff is in the process of implementing a performance management program. During the first year of the program departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. Fire Services FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Battalion Chief 4 0 4 0 4 0 Deputy Fire Chief 1 0 1 0 1 0 Deputy Fire Marshall 0 0 0 0 0 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 0 1 1 0 1 0 Total 58 3 59 2 59 2 Full & Part -Time Total 6 1 61 61 125 Budget Summary Fire Services FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 6,411,242 6,126,884 6,355,466 Personal Benefits 3,643,040 3,462,568 3,673,466 Operating Expenses 393,073 1,235,039 1,488,196 Contractual Services 214,556 277,785 277,786 Repairs and Maintenance 66,888 17,000 52,200 Capital Equipment 207,795 215,740 215,295 Commodities 25,110 25,400 32,525 All Other Expenses (1,663) 49,400 57,765 Total 10,960,042 11,409,816 12,153,814 *Additionally, three full-time Building Inspectors serve as part-time fire inspectors. 126 Budget Variance Fire Services Line item Number Account Description Percent Change Dollar Amount Change Description of Change 500.10 Part Time (27.01%) (20,489) Reduction of one part time employee 500.35 Overtime 16.50% 85,000 Increase based on historical Usage 505.05 Group & Medical Life 14.40% 156,000 Increase in health c are premium 505.10 Professional Training 59.83% 15,400 Additional training and nutritionist 505.20 Clothing Allowance 17.74% 4,700 Replacement Uniforms 505.35 Safety Equipment 56.21% 18,000 Replace all turnout gear 505.75 Employer's Contribution - FICA 22.47% 2,312 Results from additional overtime and COLA budgeted 505.80 Employer's Contribution - IMRF 29.48% 5,629 Results from additional overtime and COLA budgeted 505.85 Employer's Contribution Medicare 19.97% 15,340 Results from additional overtime and COLA budgeted 510.04 Travel 27.03% 1,000 Increase in training budget 510.06 Per Diem Allowance 52.63% 1,000 Increase in training budget 510.10 Maintenance Contracts 27.78% 20,000 Shared cost of Northwest central dispatch 510.21 IT Internal Svc Contribution 19.41% 57,321 Change due to actual experience 510.40 Supplies - Office (36.59%) (3,000) Reduction based on historical usage 510.55 Operating Equip - Department (18.25%) (20,300) Reduction based on historical usage 510.59 SCBA Equipment NEW 25,336 SCBA Equipment 535.01 Building Mnt Internal Svc (10.23%) (29,823) Change due to actual experience 545.01 Central Garage Internal Svc (20.57%) (114,992) Change due to actual experience 515.15 IRMA Deductible - Worker's Comp (24.17%) (11,154) Reduction based on historical usage 515.20 IRMA Deductible - Non Wrker's Co (51.25%) (15,769) Reduction based on historical usage 535.20 Buildings & Facilities New 35,000 Rehab funds for fire stations 550.05 Other Department Equipment (22.52%) (5,000) Reduction for new equipment purchased 530.50 Small Equipment Tools & Hardware 14.12% 4,025 Additional items required for Fire Department projects 580.11 Contractual Services 15.15% 3,601 Return to work evaluations 127 10,960,042 11,409,816 12,153,814 Fire Department/EMA FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 128 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund Expenditures Department: 40 - Fire 10 - Salaries 500.05 Full Time 261,053 321,028 142,484 142,484 147,865 500.10 Part Time 22,951 40,900 75,861 55,400 55,372 500.20 Sworn 5,304,995 5,295,789 5,398,685 5,241,000 5,513,944 500.30 Special Duty (2,216) (11,106) - - - 500.35 Overtime 516,952 729,431 515,000 650,000 600,000 500.40 Longevity 39,800 35,200 38,000 38,000 38,000 10 - Salaries 6,143,535 6,411,242 6,170,030 6,126,884 6,355,181 Percent Change 2016 vs. 2015 Budget 3.00% 15 - Taxes and Benefits 505.05 Group & Medical Life 1,214,148 1,167,221 1,083,000 1,083,000 1,239,000 505.10 Professional Training 10,774 27,453 23,400 18,500 37,400 505.15 Dues & Memberships 9,119 7,253 11,740 9,100 11,740 505.20 Clothing Allowance 18,358 23,000 26,500 25,100 31,200 505.35 Safety Equipment 13,118 18,593 32,020 32,000 50,020 505.45 ICMA Deferred Compensation - - - - - 505.50 Employee Recognition - - - - - 505.61 Pension Payment - Fire - 2,264,767 2,174,632 2,174,632 2,174,632 505.75 Employer's Contribution - FICA - 22,310 10,289 12,297 12,601 505.80 Employer's Contribution - IMRF - 20,934 19,093 19,093 24,722 505.85 Employer's Contribution Medicare - 91,509 76,811 88,846 92,151 15 - Taxes and Benefits 1,265,517 3,643,040 3,457,485 3,462,568 3,673,4 66 Percent Change 2016 vs. 2015 Budget 6.2 5% 25 - Operating Expenses 510.02 Telephone 27,517 33,148 25,100 19,000 25,100 510.04 Travel 918 2,529 3,700 3,700 4,700 510.06 Per Diem Allowance 149 557 1,900 1,900 2,900 510.08 Reception & Community Affairs 27 65 100 100 100 510.10 Maintenance Contracts 84,397 87,952 72,000 70,000 92,000 510.12 Equipment Rental - - - - - 510.14 Subscriptions & Publications 4,557 1,351 6,150 4,300 6,150 510.16 Printing 1,047 1,073 1,500 1,500 1,500 510.21 IT Internal Svc - - 295,260 248,687 352,581 129 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Contribution 510.40 Supplies - Office 4,727 5,903 8,200 5,900 5,200 510.50 Supplies - All Other 8,669 16,414 16,000 14,000 16,000 510.55 Operating Equip - Department 100,337 95,823 111,250 100,000 90,950 510.59 SCBA Equipment - - - - 25,336 510.65 Northwest Central Dispatch 155,556 148,257 160,000 160,000 535.01 Building Mnt Internal Svc - - 291,475 244,877 261,652 545.01 Central Garage Internal Svc - - 559,019 361,075 444,027 25 - Operating Expenses 387,900 393,073 1,551,654 1,235,039 1,488,196 Percent Change 2016 vs. 2015 Budget -4.09% 30 - Contractual Services 515.05 IRMA Premium - 215,386 215,386 215,386 215,386 515.10 Unemployment Insurance 12,400 12,400 12,400 12,399 12,400 515.15 IRMA Deductible - Worker's Comp - (19,591) 46,154 35,000 35,000 515.20 IRMA Deductible - Non Wrker's Co - 6,361 30,769 15,000 15,000 30 - Contractual Services 12,400 214,556 304,709 277,785 277,786 Percent Change 2016 vs. 2015 Budget -8.84% 40 - Repairs and Maintenance 535.20 Buildings & Facilities 16,334 45,184 - - 35,000 545 Vehicles - - - - - 545.05 Gasoline 154 - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts 155 510 - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work 2,896 - - - - 545.40 Contractual Auto Services 4,903 5,266 - - - 550 Other Department Equipment - - - - - 550.05 Other Department Equipment 13,898 15,929 22,200 17,000 17,200 40 - Repairs and Maintenance 38,341 66,888 22,200 17,000 52,200 Percent Change 2016 vs. 2015 Budget 135.14% 130 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 45 - Commodities 530.50 Small Equipment Tools & Hardware 8,150 25,110 28,500 25,400 32,525 45 - Commodities 8,150 25,110 28,500 25,400 32,525 Percent Change 2016 vs. 2015 Budget 14.12% 50 - Other Expenses 580.05 All Other Expenses (3,170) (22,035) 6,500 6,400 6,500 580.10 Consultant Fees - - - - - 580.11 Contractual Services 4,912 8,154 23,764 20,000 27,365 580.20 CAFT Site (3,318) (5,790) 5,000 5,000 5,000 580.21 NWCH Administration Fee 15,816 18,009 19,212 18,000 18,900 580.65 IRMA Deductible - Worker's Comp - - - - - 50 - Other Expenses 14,240 (1,663) 54,476 49,400 57,765 Percent Change 2016 vs. 2015 Budget 6.04% 55 - Capital Outlay 555.10 Office and Other Equipment 17,980 - 4,000 2,000 4,000 555.30 Reserve for Capital Replacement 106,604 135,000 135,000 137,446 135,000 555.40 Reserve for Technology 19,565 18,200 18,200 18,200 18,200 555.50 Reserve for Buildings - 54,595 54,595 54,594 54,595 560 Capital Projects - - - - - 560.10 Land Improvements - - 2,500 2,500 2,500 560.30 Buildings & Structures - - 1,000 1,000 1,000 55 - Capital Outlay 144,149 207,795 215,295 215,740 215,295 Percent Change 2016 vs. 2015 Budget 0.00% Department Total: 40 - Fire 8,014,232 10,960,042 11,804,349 11,409,816 12,152,414 Percent Change 2016 vs. 2015 Budget 2.9 5% 131 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 64 sworn and 22 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 Front Desk Officers and  three part‐time Front Desk Officers (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.                                           46 Raupp Boulevard, Buffalo Grove, IL  60089 | www.vbg.org | (847) 459‐2560   Village Manager 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 (Red Team) Night Watch (Blue Team) Evening Watch (White Team) Directed Patrol Unit Investigations Commander Criminal Investigators Juvenile Operations Task Forces Department Structure 133 2016 Staffing Summary In 2016, the department will reduce the number of Community Service Officers and Crossing Guards by one. The Patrol Commander will be moved to an administrative position. The School Resource Officers will also be moved to the Administration Division under the supervision of the Administrative Services Lieutenant. The Evidence Custodian position will be moved from part-time to full-time to assist with Administrative Adjudication . We will continue to evaluate calls for service and Officer Daily Activity Report data in 2016 to establish proper distribution of officer staffing on each patrol watch. Our current staffing is sufficient to properly deploy officers on each watch. Police Services FY 2014 FY 2015 FY 2016 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 3 0 2 0 Crossing Guard 0 9 0 9 0 8 Deputy Police Chief 1 0 2 0 2 0 Desk Officer 2 3 2 3 2 3 Evidence Custodian 0 1 0 1 1 0 Lieutenant 3 0 4 0 4 0 Patrol Officer 48 0 47 0 4 7 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 Technical Services Administrator 1 0 1 0 1 0 Administrative Assistant 1 0 1 0 1 0 Total 74 14 74 14 74 12 Full & Part -Time Total 88 88 86 134 Strategic Priorities and Measures Police Department Strategic Priorities Measure Averaged Baseline Q1 Q2 Q3 Service Optimization Citations and Adjudication Tickets 2,469 1,495 3,258 2,654 Service Optimization Active Case Status 87 65 90 107 Service Optimization Overtime Costs $12,271 $6,057 $10,652 $20,103 Organizational Culture No Measure Identified N/A N/A N/A N/A Revenue Growth Dollars collected from overweight vehicles $26,321 $8,139 $42,226 $28,599 Economic Development No Measure Identified N/A N/A N/A N/A Infrastructure Stability No Measure Identified N/A N/A N/A N/A Village staff is in the process of implementing a performance management program. During the first year of the program departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. 2016 Budget Police Services FY 2014 Actual FY 2015 Est. Actuals FY 2016 Budget Personal Services 7,296,506 7,681,586 7,783,763 Personal Benefits 3,810,336 4,057,078 4,367,378 Operating Expenses 590,757 1,456,981 1,700,305 Contractual Services 427,023 409,814 409,814 Maintenance & Repair 16,533 8 ,400 16,160 Capital Equipment 232,997 198,915 202,365 All Other Expenses 65,444 73,295 93,695 Total 12,439,595 13,886,069 14,573,480 135 2016 Variance Police Services Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 500.10 Part Time (14.49%) (30,502) Reduction of staff 505.05 Group & Medical Life 11.25% 161,500 Health i nsurance Premium increase 505.10 Professional Training 18.02% 7,984 NEMRT, Relias, Basic Academy, Staff/Command s pecialized training 505.15 Dues & Memberships 30.00% 750 IACP, ILACP, and Chiefs associations 505.20 Clothing Allowance (80.75%) (26,225) Reclassed to s alary 505.25 Uniform Maintenance (88.49%) (23,064) Reclassed to s alary 510.06 Per Diem Allowance 16.67% 250 Additional training budgeted 510.16 Printing 19.41% 1,800 Additional c itations 510.21 IT Internal Svc Contribution 23.22% 82,932 Recalibrated cost basis 510.30 Safety Equipment - Patrol 65.17% 5,800 Replace equipment and AED's 510.43 Supplies - Communications 33.33% 500 Replacement parts 510.45 Supplies - OCOP 66.67% 300 Supplies and equipment 510.46 Supplies - Training 12.35% 1,550 Ammo, AV equipment 510.47 Supplies - Crime Prevention 13.04% 600 Promotional items 510.55 Operating Equip - Department (56.60%) (6,520) Reduction of taser and firearms supplies 510.57 Operating Equip - FOSG 29.61% 1,194 LEADS, APB, 3si, Kantana, and other software 510.60 Operating Equip - OCOP 275.00% 550 Grant a wards 510.63 Operating Equip - Bike Patrol (50.00%) (500) Reduction of bike repairs 510.65 Northwest Central Dispatch 15.69% 55,839 Increase in membership 510.66 NIPAS 13.35% 700 Annual Membership 545.01 Central Garage Internal Svc (37.78%) (236,767) Recalibrated cost basis 550.10 Radios 25.46% 966 Chi -comm contract 550.20 Patrol Equipment 209.52% 4,400 Breathalyzers, range repairs, and other misc 580.05 All Other Expenses 38.85% 2,700 Vaccinations l ead and hearing tests, background and credit checks 580.15 Committee on Accreditation 18.18% 1,000 Assessment costs 580.55 Records Management 145.00% 15,000 RMS and Livescan reporting 136 12,439,595 13,886,069 14,573,480 Police FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 137 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund Expenditures Department: 45 - Police 10 - Salaries 500.05 Full Time 656,322 678,423 642,875 642,875 675,133 500.10 Part Time 243,075 212,968 210,546 210,546 180,044 500.20 Sworn 5,965,994 6,034,917 6,477,765 6,477,765 6,577,986 500.30 Special Duty (21,309) (4,686) - - - 500.35 Overtime 260,998 327,483 300,000 300,000 300,000 500.40 Longevity 49,400 47,400 50,400 50,400 50,600 10 - Salaries 7,154,479 7,296,506 7,681,586 7,681,586 7,783,763 Percent Change 2016 vs. 2015 Budget 1.33% 15 - Taxes and Benefits 505.05 Group & Medical Life 1,291,583 1,248,734 1,435,527 1,435,527 1,597,027 505.10 Professional Training 32,452 39,746 44,300 44,300 52,284 505.15 Dues & Memberships 2,080 2,477 2,500 2,500 3,250 505.20 Clothing Allowance 25,220 26,932 32,475 32,475 6,250 505.25 Uniform Maintenance 26,653 26,256 26,064 26,064 3,000 505.30 Recruit Uniforms 4,412 3,296 3,300 3,300 3,500 505.45 ICMA Deferred Compensation - - - - - 505.60 Pension Payment - Police - 2,202,224 2,256,676 2,256,676 2,440,239 505.75 Employer's Contribution - FICA - 54,373 52,660 52,660 52,726 505.80 Employer's Contribution - IMRF - 106,083 98,592 98,592 102,817 505.85 Employer's Contribution Medicare - 100,216 104,984 104,984 106,285 15 - Taxes and Benefits 1,382,400 3,810,336 4,057,078 4,057,078 4,367,378 Percent Change 2016 vs. 2015 Budget 7.65% 25 - Operating Expenses 510.02 Telephone 31,813 43,008 36,000 35,000 37,150 510.04 Travel 1,029 1,817 2,775 2,500 2,775 510.06 Per Diem Allowance 1,364 1,531 1,500 1,500 1,750 510.10 Maintenance Contracts 43,300 42,169 43,260 43,260 41,148 510.14 Subscriptions & Publications 764 802 950 900 950 510.16 Printing 8,565 9,194 9,275 9,275 11,075 510.21 IT Internal Svc Contribution - - 357,159 300,822 440,091 510.22 Recruitment Charges 194 1,458 500 500 500 510.26 Physical Fitness Equipment 393 600 5,000 5,000 5,000 510.30 Safety Equipment - Patrol 4,816 9,871 8,900 8,900 14,700 510.32 Safety Equipment - FOSG 483 498 500 500 500 510.33 Operating Equip - Staff 531 1,663 500 500 500 510.34 DUI Assessment Purchases 1,515 283 - - - 510.35 Reimburseable Expenses 1,078 - - - - 510.41 Supplies - Patrol 2,258 3,261 3,275 3,275 3,275 510.42 Supplies - FOSG 3,154 4,704 4,700 4,700 4,950 510.43 Supplies - Communications 1,440 1,538 1,500 1,500 2,000 510.44 Supplies - Records 9,498 6,400 9,000 9,000 8,500 510.45 Supplies - OCOP 450 450 450 450 750 510.46 Supplies - Training 7,995 8,540 12,550 12,550 14,100 510.47 Supplies - Crime Prevention 4,776 4,533 4,600 4,600 5,200 510.48 Supplies - Detention 684 1,182 1,300 1,300 1,200 510.55 Operating Equip - Department 11,859 11,517 11,520 11,520 5,000 510.56 Operating Equip - Patrol 1,849 3,237 2,800 2,800 2,800 510.57 Operating Equip - FOSG 3,468 3,468 4,033 4,033 5,227 138 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.58 Operating Equip - Communications 511 622 750 750 750 510.60 Operating Equip - OCOP 86 165 200 200 750 510.61 Operating Equip - Training - 1,060 700 700 700 510.62 Operating Equip - Detention - - 150 100 150 510.63 Operating Equip - Bike Patrol 1,125 1,300 1,000 600 500 510.64 Operating Equipment - Records 1,094 685 1,072 1,072 1,072 510.65 Northwest Central Dispatch 350,793 354,045 355,869 355,869 411,708 510.66 NIPAS 4,845 5,181 5,245 5,100 5,945 510.67 Northern IL Police Crime Lab 58,334 60,701 63,075 61,000 62,575 510.68 Animal Control 4,235 4,351 4,350 4,000 4,350 510.69 Prisoner Care 517 923 1,300 1,000 1,300 535.01 Building Mnt Internal Svc - - 195,145 157,498 211,451 545.01 Central Garage Internal Svc - - 626,680 404,707 389,913 25 - Operating Expenses 564,816 590,757 1,777,583 1,456,981 1,700,305 Percent Change 2016 vs. 2015 Budget -4.35% 30 - Contractual Services 515.05 IRMA Premium - 291,063 291,063 291,063 291,063 515.10 Unemployment Insurance 15,400 15,000 14,800 14,800 14,800 515.15 IRMA Deductible - Worker's Comp - 84,539 62,371 62,371 62,371 515.20 IRMA Deductible - Non Wrker's Co - 36,421 41,580 41,580 41,580 520.05 Legal Services Retainer Fee - - - - - 30 - Contractual Services 15,400 427,023 409,814 409,814 409,814 Percent Change 2016 vs. 2015 Budget 0.00% 40 - Repairs and Maintenance 545.05 Gasoline - 2,183 - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - 95 - - - 550.10 Radios 2,711 3,366 3,794 3,000 4,760 550.15 Mobile Data Terminals 2,386 2,480 500 400 500 550.20 Patrol Equipment 4,125 5,050 2,100 1,500 6,500 550.25 F.O.S.G. Equipment 679 608 650 500 650 550.30 Staff Equipment 2,750 2,750 3,750 3,000 3,750 40 - Repairs and Maintenance 12,652 16,533 10,794 8,400 16,160 Percent Change 2016 vs. 2015 Budget 49.71% 50 - Other Expenses 580.05 All Other Expenses 5,917 6,264 6,950 6,950 9,650 580.10 Consultant Fees - - - - - 580.11 Contractual Services 40,000 40,000 40,000 40,000 40,000 580.15 Committee on Accreditation 5,347 5,096 5,500 5,500 6,500 580.25 OMNI Youth Services 2,815 - - - - 580.30 Overweight Truck Enforcement 1,748 1,732 2,200 1,500 2,200 580.55 Records Management 10,345 10,345 10,345 10,345 25,345 580.57 Police Grant Charges 5,210 2,008 10,000 9,000 10,000 580.58 Il. Criminal Justice Info. Auth. - - - - - 580.65 IRMA Deductible - Worker's Comp - - - - - 139 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 50 - Other Expenses 71,382 65,444 74,995 73,295 93,695 Percent Change 2016 vs. 2015 Budget 24.93% 55 - Capital Outlay 555.10 Office and Other Equipment 17,641 5,749 23,450 20,000 23,450 555.20 Automobiles & Trucks 14 - - - - 555.30 Reserve for Capital Replacement 52,950 125,000 100,000 100,000 100,000 555.40 Reserve for Technology - 33,333 10,000 10,000 10,000 555.50 Reserve for Buildings - 68,915 68,915 68,915 68,915 55 - Capital Outlay 70,605 232,997 202,365 198,915 202,365 Percent Change 2016 vs. 2015 Budget 0.00% Department Total: 45 - Police 9,271,734 12,439,595 14,214,215 13,886,069 14,573,480 Percent Change 2016 vs. 2015 Budget 2.53% 140 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, 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 Work •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) 50 Raupp Boulevard, Buffalo Grove, IL 60089 | www.vbg.org | (847) 459-2530  Department Structure Village Manager Director of Community Development Village Planner Building Commissioner Health Inspector Building Inspectors Property Maintenance Inspectors Plan Review Administration/ Permit Clerks Deputy Clerk/Permit Technician 142 2016 Staffing Summary  In June of 2014, the customer service staffs of Building & Zoning 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 Community Development Department.  These changes are reflected below.           Community Development FY 2014 FY 2015 FY 2016  FT PT FT PT FT PT  Administrative Assistants 2 0 2 0 2 0  Associate Planner 0 1 0 1 0 0  Building Commissioner 1 0 1 0 1 0  Building Inspector 1 0 1 0 1 0  Cashier 0 0 0 0 0 1  Clerk II 0 2 0 1 0 1  Community Development Director 0 0 1 0 1 0  Deputy Building Commissioner 0 0 0 0 0 0  Deputy Clerk 0 0 0 0 0 1  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 10 3 11 2 11 3  Full & Part‐Time Total 13 13 14   Strategic Priorities and Measures Community Development Strategic Priorities Measure Averaged Baseline Q1 Q2 Q3 Service Optimization No Measure Identified N/A N/A N/A N/A Organizational Culture No Measure Identified N/A N/A N/A N/A Revenue Growth No Measure Identified N/A N/A N/A N/A Economic Development Permit Applications 584 284 792 678 Economic Development Fees Collected $277,409 $140,000 $344,876 $347,351 Economic Development Total Valuation of Work Performed $13,361,337 $4,929,814 $17,514,299 $17,639,899 Infrastructure Stability No Measure Identified N/A N/A N/A N/A Village staff is in the process of implementing a performance management program. During the first year of the program departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. Budget Summary Community Development FY 2014 FY 2015 Est. Actual FY 2016 Budget Personal Service 838,238 892,937 1,131,104 Personal Benefits 349,057 389,774 503,691 Operating Expenses 58,917 169,543 217,262 Contractual Services 1,387 1,387 1,882 Repairs and Maintenance 155 - - Commodities 86 55 2,600 Other Expenses 8,439 25,626 101,000 Capital Outlay 11,855 13,855 13,855 Total 1,268,134 1,493,177 1,971,394 144 Budget Variance Building/Zoning/Health Line Item Number Description Percent Change Dollar Amount Change Description of Change 500.05 Full Time 28.16% 237,170 Additional employees from OVM 500.40 Longevity 12.12% 800 Employee milestones 505.05 Group & Medical Life 32.63% 62,000 Additional employees from OVM 505.10 Professional Training 10.36% 570 Additional conferences 505.15 Dues & Memberships 114.29% 1,600 Additional memberships 505.35 Safety Equipment (100.00%) (100) Reclassed to Tools & Hardware 505.75 Employer's Contribution - FICA 22.17% 12,583 Additional employees from OVM 505.80 Employer's Contribution - IMRF 27.90% 34,225 Additional employees from OVM 505.85 Employer's Contribution Medicare 23.57% 3,128 Additional employees from OVM 510.02 Telephone 86.67% 3,900 Additional lines 510.04 Travel 135.29% 1,150 Additional conferences 510.08 Reception & Community Affairs (100.00%) (850) Reclassed to supplies 510.12 Equipment Rental (100.00%) (100) Reduced based on usage 510.14 Subscriptions & Publications (54.55%) (600) Reclassed to Dues & Memberships 510.21 IT Internal Svc Contribution 51.96% 28,269 Recalibrated cost basis 510.40 Supplies - Office 50.00% 1,000 Reclassed from Reception and Community 545.01 Central Garage Internal Svc (48.12%) (25,765) Recalibrated cost basis 550.05 Other Department Equipment (100.00%) (3,000) Reduced based on historical usage 530.50 Tools & Hardware 333.33% 2,000 Reclassed from Safety Equipment 580.10 Consultant Fees 306.07% 75,374 Land use study 145 1,268,134 1,493,177 1,971,394 Total Community Development FY 2014 FY 2015 Est. Actual FY 2016 Budget 146 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General 10 - Salaries 500.05 Full Time 767,800 789,560 842,074 842,275 1,079,244 500.10 Part Time 64,341 38,177 39,462 39,462 40,460 500.35 Overtime 2,849 3,901 4,000 4,000 4,000 500.40 Longevity 7,400 6,600 6,600 7,200 7,400 10 - Salaries 842,390 838,238 892,136 892,937 1,131,104 Percent Change 2016 vs. 2015 Budget 26.79% 15 - Taxes and Benefits 505.05 Group & Medical Life 144,498 167,835 190,000 190,000 252,000 505.10 Professional Training 3,656 4,626 5,500 5,500 6,070 505.15 Dues & Memberships 1,537 1,232 1,400 1,400 3,000 505.25 Uniform Maintenance - - - - - 505.35 Safety Equipment - - 100 147 - 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 51,916 56,753 56,765 69,336 505.80 Employer's Contribution - IMRF - 111,284 122,659 122,686 156,884 505.85 Employer's Contribution Medicare - 12,164 13,273 13,276 16,401 15 - Taxes and Benefits 149,691 349,057 389,685 389,774 503,691 Percent Change 2016 vs. 2015 Budget 29.26% 25 - Operating Expenses 510.02 Telephone 4,323 5,760 4,500 4,500 8,400 510.04 Travel 707 990 850 350 2,000 510.06 Per Diem Allowance 116 195 600 100 600 510.08 Reception & Community Affairs 442 696 850 750 - 510.10 Maintenance Contracts 48,547 48,298 49,606 49,606 49,900 510.12 Equipment Rental - - 100 - - 510.14 Subscriptions & Publications 1,203 445 1,100 70 500 510.16 Printing 1,156 1,561 1,100 1,500 1,100 510.21 IT Internal Svc Contribution - - 54,408 45,826 82,677 510.40 Supplies - Office 2,888 971 2,000 1,500 3,000 535.01 Building Mnt Internal Svc - - 38,125 30,765 41,311 545.01 Central Garage Internal Svc - - 53,539 34,576 27,774 25 - Operating Expenses 59,383 58,917 206,778 169,543 217,262 Percent Change 2016 vs. 2015 Budget 5.07% 30 - Contractual Services 515.05 IRMA Premium - 1,387 1,387 1,387 1,387 515.10 Unemployment Insurance 1,800 - - - - 515.15 IRMA Deductible - Worker's Comp - - 297 - 297 515.20 IRMA Deductible - Non Wrker's Co - - 198 - 198 147 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 30 - Contractual Services 1,800 1,387 1,882 1,387 1,882 Percent Change 2016 vs. 2015 Budget 0.00% 40 - Repairs and Maintenance 545.05 Gasoline - - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Other - - - - - 550.05 Other Department Equipment 1,953 155 3,000 - - 40 - Repairs and Maintenance 1,953 155 3,000 - - Percent Change 2016 vs. 2015 Budget -100.00% 45 - Commodities 530.50 Tools & Hardware 242 86 600 55 2,600 45 - Commodities 242 86 600 55 2,600 Percent Change 2016 vs. 2015 Budget 333.33% 50 - Other Expenses 580.05 All Other Expenses 1,822 381 1,000 1,000 1,000 580.10 Consultant Fees 30,571 8,058 24,626 24,626 100,000 50 - Other Expenses 32,393 8,439 25,626 25,626 101,000 Percent Change 2016 vs. 2015 Budget 294.13% 55 - Capital Outlay 555.10 Office and Other Equipment - - - - - 555.30 Reserve for Capital Replacement 3,064 4,000 4,000 4,000 4,000 555.40 Reserve for Technology - 1,800 1,800 1,800 1,800 555.50 Reserve for Buildings - 6,055 8,055 8,055 8,055 55 - Capital Outlay 3,064 11,855 13,855 13,855 13,855 Percent Change 2016 vs. 2015 Budget 0.00% Department Total:50 - Community Development 1,090,916 1,268,134 1,533,562 1,493,177 1,971,394 Percent Change 2016 vs. 2015 Budget 28.55% 148 51 Raupp Boulevard, Buffalo Grove, IL 60089 | www.vbg.org | (847) 459-2547 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 comp uter application development, are also provided through the administration. Engineering Engineering consists of subdivision and development control, capital improvement engineering, staff 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 Divis ion and the Utility Divis ion, 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 Division include snow & ic e control, street sweeping, concrete and asphalt repairs, regulatory street sign inventory and maintenance, banner production and installation and street striping. 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 an d 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 informa tion can be found in the internal service fund, section 8, of the budget document. 149 Drainage Section This Section provides for the preventive maintenance of the Village storm sewer and drainage system in accordance with guidelines established by the I llinois 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. 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 C ounty 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. Financi al 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 Enterpri se Fund, Section 7 of the budget document. 150 Department Structure Village Manager Director of Public Works Administration Operations Maintenance Building Maintenance Central Garage Forestry Streets Utilities Water Sewer & Drainage Engineering 151 2016 Staffing Summary The current approved staffing level for the department is 59. In 2016, one Maintenance Worker position in the Forestry section will be eliminated as part of a move to contract tree trimming services. One of the three approved Maintenance Worker position additions was put on hold as part of the water meter upgrade program. Public Works/Engineering FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Automotive Mechanic II 3 0 3 0 3 0 Automotive Mechanic III 1 0 1 0 1 0 Automotive Shop Assistant 0 1 0 1 0 1 Building Maintenance Supervisor 1 0 1 0 0 0 -Building Maintenance Manager 0 0 0 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 1 0 Civil Engineer II 1 0 1 0 1 0 Clerk II 0 0 0 0 0 0 Deputy Director of Public Works 1 0 1 0 1 0 Director of Public Works 1 0 0 1 0 Engineering Aide 0 1 0 1 0 1 Engineering Technician 1 0 1 0 1 0 Facility Coordinator 0 0 0 0 0 0 Fleet Manager 1 0 1 0 1 0 Forestry and Grounds Supervisor 1 0 1 0 0 0 Forestry & Grounds Manager 0 0 0 0 1 0 Laborer – Seasonal 0 6 0 6 0 6 Maintenance Worker I 9 0 8 0 6 0 Maintenance Worker II 10 0 13 0 14 0 Maintenance Worker II – CL 7 0 6 0 6 0 Maintenance Worker III 1 0 0 0 0 0 Metra Station Attendant 0 0 0 0 0 0 Operations Mgr – Streets, Drainage, Sanitary Sewer 1 0 0 0 0 0 -Superintendent of Maintenance 0 0 1 0 1 0 Seasonal Snow Plow Driver 0 1 0 1 0 1 Secretary 3 0 2 1 2 1 Sewer & Drainage Manager 0 0 1 0 1 0 Streets Manager 0 0 1 0 1 0 Superintendent of Water Operations 1 0 0 0 0 0 Superintendent of Utilities 0 0 1 0 1 0 Village Engineer 1 0 1 0 1 0 Water Manager 0 0 1 0 1 0 Total 48 9 50 10 49 10 Full & Part -Time Total 57 60 59 152 Strategic Priorities and Measures Public Works Strategic Priorities Measure Averaged Baseline Q1 Q2 Q3 Service Optimization Miles of Road Plowed N/A 26,697 N/A N/A Service Optimization Tree Trimmed 356 926 98 44 Organizational Culture No Measure Identified N/A N/A N/A N/A Revenue Growth No Measure Identified N/A N/A N/A N/A Economic Development No Measure Identified N/A N/A N/A N/A Infrastructure Stability Tons of Fill per Road Mile 11.92 8 22.75 5 Village staff is in the process of implementing a performance management program. During the first year of the program departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. Budget Summary Streets FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 673,875 691,068 717,170 Personal Benefits 262,911 296,330 319,799 Operating Expenses 92,559 337,044 675,430 Contractual Services 23,655 31,425 31,425 Repairs & Maintenance 623,712 534,600 635,100 Capital Outlay 79,368 79,896 79,943 Commodities 481,668 398,540 398,700 Total 2,237,746 2,368,903 2,857,567 Budget Variance Streets Line item Number Account Description Percent Change Dollar Amount Change Description of Change 505.15 Dues & Memberships 100.00% 130 Additional membership 510.21 IT Internal Svc Contribution 51.89% 16,159 Recalibrated cost basis 535.01 Building Mnt Internal Svc 13.94% 9,377 Recalibrated cost basis 545.01 Central Garage Internal Svc 211.54% 299,799 Recalibrated cost basis 535.10 Streets & Highways 28.46% 72,000 Reclassed from Building Maintenance 530.50 Small Equipment Tools & Hardware 29.63% 160 Additional tools required 555.10 Office and Other Equipment New 575 Increase based on historical trend 153 2,237,746 2,368,903 2,857,567 Total Streets FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 154 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund Department: 55 - Public Works Division: 10 - Streets 500.05 Full Time 504,028 486,586 575,598 575,598 601,210 500.10 Part Time 81 - - - - 500.35 Overtime 149,192 183,659 107,711 110,000 110,000 500.40 Longevity 4,697 3,630 5,470 5,470 5,960 10 - Salaries 657,998 673,875 688,779 691,068 717,170 Percent Change 2016 vs. 2015 Budget 4.12% 15 - Taxes and Benefits 505.05 Group & Medical Life 133,502 131,635 144,394 144,394 158,250 505.10 Professional Training 10 625 2,000 2,000 2,180 505.15 Dues & Memberships 79 311 130 300 260 505.20 Clothing Allowance 1,302 1,610 1,463 1,463 1,595 505.26 Uniform Rental 701 2,303 1,936 1,936 2,110 505.35 Safety Equipment 645 267 850 1,250 925 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 37,176 42,704 42,704 44,465 505.80 Employer's Contribution - IMRF - 70,443 92,296 92,296 99,615 505.85 Employer's Contribution Medicare - 8,694 9,987 9,987 10,399 15 - Taxes and Benefits 136,239 262,911 295,760 296,330 319,799 Percent Change 2016 vs. 2015 Budget 8.13% 25 - Operating Expenses 510.02 Telephone 480 2,921 2,255 2,255 2,457 510.04 Travel - 612 - - - 510.10 Maintenance Contracts 87,258 80,756 105,066 105,066 100,000 510.12 Equipment Rental 422 599 400 400 400 510.14 Subscriptions & Publications - - 75 75 81 510.21 IT Internal Svc Contribution - - 31,142 26,230 47,301 510.40 Supplies - Office 881 1,013 472 472 514 510.50 Supplies - All Other 4,464 3,508 5,000 5,000 5,000 510.55 Operating Equip - Department 5,325 3,150 1,500 1,500 1,500 535.01 Building Mnt Internal Svc - - 67,281 54,326 76,658 545.01 Central Garage Internal Svc - - 141,720 141,720 441,519 25 - Operating Expenses 98,831 92,559 354,911 337,044 675,430 Percent Change 2016 vs. 2015 Budget 90.31% 30 - Contractual Services 515.05 IRMA Premium - 22,271 22,271 22,271 22,271 515.10 Unemployment Insurance 1,200 1,200 1,200 1,200 1,200 515.15 IRMA Deductible - Worker's Comp - - 4,772 4,772 4,772 515.20 IRMA Deductible - Non Wrker's Co - 184 3,182 3,182 3,182 30 - Contractual Services 1,200 23,655 31,425 31,425 31,425 Percent Change 2016 vs. 2015 Budget 0.00% 155 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 40 - Repairs and Maintenance 535.05 Sidewalks, Curbs, & Bikeways 93,936 422,421 275,000 275,000 299,700 535.10 Streets & Highways 155,023 198,915 253,000 250,000 325,000 545.05 Gasoline - - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 6,675 1,236 9,000 9,000 9,800 550.10 Radios - 1,239 600 600 600 40 - Repairs and Maintenance 255,634 623,712 537,600 534,600 635,100 Percent Change 2016 vs. 2015 Budget 18.14% 45 - Commodities 530.40 Snow & Ice Control Mix 54,034 448,754 356,000 356,000 356,000 530.50 Small Equipment Tools & Hardware 425 319 540 540 700 530.55 Traffic & Street Signs 42,617 32,594 42,000 42,000 42,000 45 - Commodities 97,077 481,668 398,540 398,540 398,700 Percent Change 2016 vs. 2015 Budget 0.04% 55 - Capital Outlay 555.10 Office and Other Equipment - - - 528 575 555.20 Automobiles & Trucks - - - - - 555.30 Reserve for Capital Replacement 72,998 72,998 72,998 72,998 72,998 555.40 Reserve for Technology 7 1,000 1,000 1,000 1,000 555.50 Reserve for Buildings - 5,370 5,370 5,370 5,370 55 - Capital Outlay 73,005 79,368 79,368 79,896 79,943 Percent Change 2016 vs. 2015 Budget 0.72% Division Total: 10 - Streets 1,319,984 2,237,746 2,386,383 2,368,903 2,857,567 Percent Change 2016 vs. 2015 Budget 156 Budget Summary  Public Works Administration    FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Services 259,131 210,402 218,635  Personal Benefits 129,061 100,614 100,138  Operating Expenses 5,008 36,562 62,537  Contractual Services 7,047 9,964 9,964  Repairs and Maintenance 49 2,000 2,000  Capital Outlay 11,448 18,380 18,380  Total 411,743 377,922 411,654    Budget Variance  Public Works Administration  Line  item  Number  Account Description Percent  Change  Dollar  Amount  Change  Description of Change  505.05 Group & Medical Life 15.75% 6,000 Health insurance premium increase  505.75 Employer's Contribution ‐ FICA (12.85%) (1,998) Calculation error in prior year  505.80 Employer's Contribution ‐ IMRF (11.76%) (4,041) Calculation error in prior year  505.85 Employer's Contribution Medicare (12.84%) (467) Calculation error in prior year  510.21 IT Internal Svc Contribution 88.24% 18,462 Recalibrated cost basis  535.01 Building Mnt Internal Svc 13.94% 1,283 Recalibrated cost basis  545.01 Central Garage Internal Svc New 1,165 Recalibrated cost basis        411,743 377,922 411,654 Total PW Admin FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 158 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund Expenditures Department: 55 - Public Works Division: 15 - Administration 10 - Salaries 500.05 Full Time 192,467 257,531 209,028 209,028 217,252 500.10 Part Time - - - - - 500.35 Overtime - - 374 374 383 500.40 Longevity 2,000 1,600 1,000 1,000 1,000 10 - Salaries 194,467 259,131 210,402 210,402 218,635 Percent Change 2016 vs. 2015 Budget 3.91% 15 - Taxes and Benefits 505.05 Group & Medical Life 33,959 57,453 38,100 38,100 44,100 505.10 Professional Training 126 2,515 3,850 3,850 3,850 505.15 Dues & Memberships 3,886 3,910 4,458 4,458 4,488 505.20 Clothing Allowance - 117 250 250 250 505.35 Safety Equipment 207 - 400 400 400 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 14,081 15,553 15,553 13,555 505.80 Employer's Contribution - IMRF - 45,945 34,366 34,366 30,325 505.85 Employer's Contribution Medicare - 3,686 3,637 3,637 3,170 15 - Taxes and Benefits 38,178 129,061 100,614 100,614 100,138 Percent Change 2016 vs. 2015 Budget -0.47% 25 - Operating Expenses 510.02 Telephone 2,106 2,626 2,800 2,800 2,800 510.04 Travel - 193 600 600 600 510.10 Maintenance Contracts 50 - - - - 510.12 Equipment Rental - 40 - - - 510.14 Subscriptions & Publications 5,958 49 2,000 2,000 2,000 510.21 IT Internal Svc Contribution - - 20,922 17,622 39,384 510.40 Supplies - Office 1,732 1,574 5,600 5,600 5,600 510.50 Supplies - All Other 31 35 500 500 500 535.01 Building Mnt Internal Svc - - 9,205 7,440 10,488 545.01 Central Garage Internal Svc - - - - 1,165 25 - Operating Expenses 9,885 5,008 41,627 36,562 62,537 Percent Change 2016 vs. 2015 Budget 50.23% 30 - Contractual Services 515.05 IRMA Premium - 7,047 7,047 7,047 7,047 515.10 Unemployment Insurance 1,000 - 400 400 400 515.15 IRMA Deductible - Worker's Comp - - 1,510 1,510 1,510 515.20 IRMA Deductible - Non Wrker's Co - - 1,007 1,007 1,007 30 - Contractual Services 1,000 7,047 9,964 9,964 9,964 Percent Change 2016 vs. 2015 Budget 0.00% 159 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 40 - Repairs and Maintenance 545.05 Gasoline - 49 - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 346 - 2,000 2,000 2,000 40 - Repairs and Maintenance 346 49 2,000 2,000 2,000 Percent Change 2016 vs. 2015 Budget 0.00% 55 - Capital Outlay 555.10 Office and Other Equipment 2,351 6,868 13,800 13,800 13,800 555.30 Reserve for Capital Replacement - - - - - 555.40 Reserve for Technology - 1,000 1,000 1,000 1,000 555.50 Reserve for Buildings - 3,580 3,580 3,580 3,580 55 - Capital Outlay 2,351 11,448 18,380 18,380 18,380 Percent Change 2016 vs. 2015 Budget 0.00% Division Total: 15 - Administration 246,227 411,743 382,987 377,922 411,654 Percent Change 2016 vs. 2015 Budget 7.49% 160 Budget Summary  Forestry  FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Services 754,595 764,230 855,921  Personal Benefits 324,625 400,142 396,830  Operating Expenses 14,970 413,918 465,914  Contractual Services 23,442 28,953 28,953  Repairs and Maintenance (19,382) 1,100 1,150  Capital Outlay 196,856 70,845 70,845  Commodities 2,975 3,100 3,150  Total 1,298,080 1,682,288 1,822,763    Budget Variance  Forestry  Line item  Number Account Description Percent  Change  Dollar Amount  Change Description of Change  510.10 Maintenance Contracts 1284.62% 100,200 Outsourced tree trimming  510.21 IT Internal Svc Contribution (14.38%) (9,070) Recalibrated cost basis  535.01 Building Mnt Internal Svc Cntrb 13.94% 6,376 Recalibrated cost basis  545.01 Central Garage Internal Svc (27.32%) (89,857) Recalibrated cost basis        1,298,080 1,682,288 1,822,763 Total Forestry FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 162   Description 2013  Actual  2014  Actual  2015  Budget  2015 Est  Actual  2016  Budget  Fund:      100 ‐ General Fund       Expenditures        Department:       55 ‐ Public Works       Division:       20 ‐ Forestry       10 ‐ Salaries         500.05 Full Time 789,880 718,072 840,175 716,320 796,239   500.10 Part Time 21,852 22,312 45,929 12,246 45,929   500.35 Overtime 16,395 7,711 5,663 28,000 5,689   500.40 Longevity 7,567 6,500 7,664 7,664 8,064  10 ‐ Salaries  835,693 754,595 899,431 764,230 855,921   Percent Change 2016 vs. 2015 Budget     ‐4.84%                 15 ‐ Taxes and Benefits        505.05 Group & Medical Life 189,517 151,747 201,769 201,769 200,250   505.10 Professional Training 1,716 2,145 4,250 4,250 4,630   505.15 Dues & Memberships 1,904 1,662 1,795 1,795 1,795   505.20 Clothing Allowance 978 1,297 2,439 2,000 2,439   505.26 Uniform Rental 2,255 2,128 2,162 2,162 2,162   505.35 Safety Equipment 960 319 1,250 1,250 1,360   505.45 ICMA Deferred Compensation  ‐ ‐ ‐ ‐ ‐   505.75 Employer's Contribution ‐ FICA ‐ 45,365 55,765 55,765 53,067   505.80 Employer's Contribution ‐ IMRF ‐ 102,078 120,524 120,524 118,716   505.85 Employer's Contribution Medicare ‐ 10,610 13,042 10,627 12,411  15 ‐ Taxes and Benefits 197,330 324,625 402,996 400,142 396,830   Percent Change 2016 vs. 2015 Budget     ‐1.53%                 25 ‐ Operating Expenses        510.02 Telephone 3,062 1,592 2,615 2,615 2,615   510.04 Travel  ‐ ‐ ‐ ‐ ‐   510.10 Maintenance Contracts 5,967 5,372 7,800 107,934 108,000   510.12 Equipment Rental ‐ ‐ 835 835 900   510.14 Subscriptions & Publications ‐ ‐ 100 ‐ 100   510.21 IT Internal Svc Contribution ‐ ‐ 63,065 53,117 53,995   510.40 Supplies ‐ Office 51 116 472 472 500   510.50 Supplies ‐ All Other 6,243 5,027 5,000 5,000 5,400   510.55 Operating Equip ‐ Department 2,981 2,862 3,000 4,195 3,250   535.01 Building Mnt Internal Svc Cntrb ‐ ‐ 45,741 36,939 52,117   545.01 Central Garage Internal Svc ‐ ‐ 328,894 202,811 239,037   580.05 Other Expense  ‐16 ‐ ‐ ‐ ‐  25 ‐ Operating Expenses 18,288 14,970 457,522 413,918 465,914   Percent Change 2016 vs. 2015 Budget     1.83%                 30 ‐ Contractual Services        515.05 IRMA Premium ‐ 19,713 19,713 19,713 19,713   515.10 Unemployment Insurance 2,400 2,200 2,200 2,200 2,200   515.15 IRMA Deductible ‐ Worker's Comp ‐ 1,529 4,224 4,224 4,224   515.20 IRMA Deductible ‐ Non Wrker's Co ‐ ‐ 2,816 2,816 2,816  30 ‐ Contractual Services 2,400 23,442 28,953 28,953 28,953   Percent Change 2016 vs. 2015 Budget     0.00%   Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 40 - Repairs and Maintenance 535.30 Parkway Trees (63,395) (19,382) - - - 545.05 Gasoline - - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment - - 600 600 650 550.10 Radios - - 500 500 500 40 - Repairs and Maintenance (63,395) (19,382) 1,100 1,100 1,150 Percent Change 2016 vs. 2015 Budget 4.55% 45 - Commodities 530.45 Chemicals and Fertilizers 292 2,407 2,500 2,500 2,500 530.50 Small Equipment Tools & Hardware 669 568 600 600 650 45 - Commodities 961 2,975 3,100 3,100 3,150 Percent Change 2016 vs. 2015 Budget 1.61% 55 - Capital Outlay 555.10 Office and Other Equipment 267 - - - - 555.20 Automobiles & Trucks 2,049 125,712 - - - 555.30 Reserve for Capital Replacement 57,911 60,000 60,000 60,000 60,000 555.40 Reserve for Technology - 1,300 1,000 1,000 1,000 555.50 Reserve for Buildings - 9,845 9,845 9,845 9,845 55 - Capital Outlay 60,227 196,856 70,845 70,845 70,845 Percent Change 2016 vs. 2015 Budget 0.00% Division Total: 20 - Forestry 1,051,504 1,298,080 1,863,947 1,682,288 1,822,763 Percent Change 2016 vs. 2015 Budget -2.21% 164   Budget Summary  Drainage  FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Services 187,543 168,447 251,398  Personal Benefits 70,803 116,386 123,301  Operating Expenses 918 65,068 88,888  Contractual Services 10,688 16,878 12,501  Repairs & Maintenance 3,478 11,000 12,000  Capital Equipment 525,872 270,851 710,851  Commodities 19 900 1,000  Total 799,322 649,530 1,199,939      Budget Variance  Drainage  Line item  Number Account Description Percent  Change  Dollar  Amount  Change  Description of Change  500.35 Overtime 79.90% 3,109 Increase based on historical usage  505.05 Group & Medical Life 10.14% 6,030 Health insurance premium increase  505.15 Dues & Memberships 100.00% 100 Additional membership  505.26 Uniform Rental 51.72% 375 Additional uniform  510.14 Subscriptions & Publications 45.45% 1,625 Additional subscriptions  510.21 IT Internal Svc Contribution (33.55%) (2,985) Recalibrated cost basis  535.01 Building Mnt Internal Svc 13.94% 2,380 Recalibrated cost basis  555.60 Reserve for Infrastructure New 360,000 Storm sewer replacement              799,322 649,530 1,199,939 Total Drainage FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 166 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund Expenditures Department: 55 - Public Works Division: 25 - Drainage 10 - Salaries 500.05 Full Time 213,849 179,952 248,399 160,000 242,398 500.10 Part Time 81 - - - - 500.35 Overtime 4,247 5,161 3,891 6,500 7,000 500.40 Longevity 1,897 2,430 1,947 1,947 2,000 10 - Salaries 220,074 187,543 254,237 168,447 251,398 Percent Change 2016 vs. 2015 Budget -1.12% 15 - Taxes and Benefits 505.05 Group & Medical Life 22,330 25,571 59,470 59,470 65,500 505.10 Professional Training - 115 600 600 600 505.15 Dues & Memberships 109 81 100 200 200 505.20 Clothing Allowance 258 314 492 500 500 505.26 Uniform Rental 417 597 725 1,100 1,100 505.35 Safety Equipment 293 2,167 1,300 1,000 1,300 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 11,170 15,762 15,762 15,587 505.80 Employer's Contribution - IMRF - 26,247 34,068 34,068 34,869 505.85 Employer's Contribution Medicare - 2,612 3,686 3,686 3,645 15 - Taxes and Benefits 23,406 70,803 116,203 116,386 123,301 Percent Change 2016 vs. 2015 Budget 6.11% 25 - Operating Expenses 510.02 Telephone 264 144 780 700 780 510.04 Travel - - - - - 510.10 Maintenance Contracts 1,296 - - - - 510.12 Equipment Rental - - 300 300 300 510.14 Subscriptions & Publications - - 3,575 5,300 5,200 510.21 IT Internal Svc Contribution - - 8,898 7,495 5,913 510.40 Supplies - Office 46 380 450 450 450 510.50 Supplies - All Other 450 76 1,000 1,000 1,000 510.55 Operating Equip - Department - 318 600 600 600 535.01 Building Mnt Internal Svc - - 17,075 13,793 19,455 545.01 Central Garage Internal Svc - - 54,896 35,430 55,190 25 - Operating Expenses 2,057 918 87,574 65,068 88,888 Percent Change 2016 vs. 2015 Budget 1.50% 30 - Contractual Services 515.05 IRMA Premium - 8,620 8,620 13,000 8,620 515.10 Unemployment Insurance 200 400 800 800 800 515.15 IRMA Deductible - Worker's Comp - 1,668 1,847 1,847 1,850 515.20 IRMA Deductible - Non Wrker's Co - - 1,231 1,231 1,231 30 - Contractual Services 200 10,688 12,498 16,878 12,501 Percent Change 2016 vs. 2015 Budget 0.02% 167 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 40 - Repairs and Maintenance 540.35 Storm and Sanitary Sewers 13,189 3,478 8,000 7,000 8,000 545.05 Gasoline - - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 1,654 - 3,200 3,200 3,200 550.10 Radios - - 200 200 200 550.30 Staff Equipment - - 600 600 600 40 - Repairs and Maintenance 14,843 3,478 12,000 11,000 12,000 Percent Change 2016 vs. 2015 Budget 0.00% 45 - Commodities 530.50 Small Equipment Tools & Hardware 131 19 1,000 900 1,000 45 - Commodities 131 19 1,000 900 1,000 Percent Change 2016 vs. 2015 Budget 0.00% 55 - Capital Outlay 555.10 Office and Other Equipment - - - - - 555.30 Reserve for Capital Replacement 18,301 18,301 18,301 18,301 18,301 555.40 Reserve for Technology - 750 750 750 750 555.50 Reserve for Buildings - 1,790 1,790 1,800 1,800 555.60 Reserve for Infrastructure - - - - 360,000 560 Capital Projects - - - - - 560.40 Improvements Other Than Building 133,084 505,031 200,000 250,000 330,000 55 - Capital Outlay 151,385 525,872 220,841 270,851 710,851 Percent Change 2016 vs. 2015 Budget 221.88% Division Total: 25 - Drainage 412,096 799,322 704,353 649,530 1,199,939 Percent Change 2016 vs. 2015 Budget 70.36% 168 Budget Summary Engineering FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget Personal Service 410,933 418,400 454,260 Personal Benefits 173,391 171,200 188,725 Operating Expenses 13,879 60,686 75,268 Contractual Services 12,707 16,670 16,676 Repairs and Maintenance 1,312 1,100 3,300 Commodities 399 500 750 Other Expenses 10 - - Capital Outlay 17,094 15,677 15,677 Total 629,724 684,233 754,656 Budget Variance Engineering Line Item Number Description Percent Change Dollar Amount Change Description of Change 500.10 Part Time 13.13% 4,332 Merit increase and cost of living 505.05 Group & Medical Life 10.53% 8,000 Health insurance premium increase 505.15 Dues & Memberships (11.11%) (100) Reduced memberships 505.26 Uniform Rental 19.05% 80 Additional uniform Safety Equipment (20.00%) (100) Reduction based on historical usage 510.14 Subscriptions & Publications (37.50%) (150) Reduction based on historical usage 510.20 Computer Services 11.11% 500 Additional IPad 510.21 IT Internal Svc Contribution (10.48%) (3,043) Recalibrated cost basis 535.01 Building Mnt Internal Svc Cntrb 12.54% 2,177 Recalibrated cost basis 545.01 Central Garage Internal Svc (18.00%) (3,343) Rrecalibrated cost basis 169 629,724 684,233 754,656 Total Engineering FY 2014 Actual FY 2015 Est. Actual FY 2016 Budget 170 Description 2013 Actual 2014 Actual 2015 Adopted 2015 Estimated 2016 Department Department: 60 - Engineering 10 - Salaries 500.05 Full Time 423,039 396,131 388,000 386,000 414,928 500.10 Part Time 27,637 12,402 33,000 31,000 37,332 500.35 Overtime - - 600 - 600 500.40 Longevity 3,000 2,400 1,400 1,400 1,400 10 - Salaries 453,676 410,933 423,000 418,400 454,260 Percent Change 2016 vs 2015 Budget 7.39% 15 - Taxes and Benefits 505.05 Group & Medical Life 62,716 81,378 76,000 76,000 84,000 505.10 Professional Training 3,666 3,187 7,000 5,000 7,000 505.15 Dues & Memberships 947 1,123 900 700 800 505.20 Clothing Allowance - 315 400 - 400 505.26 Uniform Rental 131 355 420 500 500 505.35 Safety Equipment 240 - 500 - 400 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 25,452 26,500 26,500 27,391 505.80 Employer's Contribution - IMRF - 55,629 56,500 56,500 61,776 505.85 Employer's Contribution Medicare - 5,952 6,200 6,000 6,458 15 - Taxes and Benefits 67,701 173,391 174,420 171,200 188,725 Percent Change 2016 vs 2015 Budget 8.20% 25 - Operating Expenses 510.02 Telephone 1,095 4,859 3,630 3,600 3,600 510.04 Travel 67 93 100 100 100 510.06 Per Diem Allowance - - 250 45 250 510.14 Subscriptions & Publications 255 - 400 - 250 510.16 Printing 1,308 608 2,300 - 2,300 510.20 Computer Services 4,289 4,755 4,500 4,500 5,000 510.21 IT Internal Svc Contribution - - 29,038 24,458 25,995 510.40 Supplies - Office 874 1,436 1,600 1,000 1,500 510.50 Supplies - All Other 883 2,128 1,500 1,000 1,500 510.55 Operating Equip - Department - - - - - 535.01 Building Mnt Internal Svc Cntrb - - 17,365 14,008 19,542 545.01 Central Garage Internal Svc - - 18,574 11,975 15,231 25 - Operating Expenses 8,772 13,879 79,257 60,686 75,268 Percent Change 2016 vs 2015 Budget -5.03% 30 - Contractual Services 515.05 IRMA Premium - 12,283 12,283 12,283 12,286 515.10 Unemployment Insurance 1,200 - - - - 515.15 IRMA Deductible - Worker's Comp - - 2,632 2,632 2,635 515.20 IRMA Deductible - Non Wrker's Co - 424 1,755 1,755 1,755 30 - Contractual Services 1,200 12,707 16,670 16,670 16,676 Percent Change 2016 vs 2015 Budget 0.04% 171 Description 2013 Actual 2014 Actual 2015 Adopted 2015 Estimated 2016 Department 40 - Repairs and Maintenance 545.05 Gasoline - - - - - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 232 1,312 3,000 1,000 3,000 550.10 Radios - - 300 100 300 40 - Repairs and Maintenance 232 1,312 3,300 1,100 3,300 Percent Change 2016 vs 2015 Budget 0.00% 45 - Commodities 530.50 Small Equipment Tools & Hardware - 399 750 500 750 45 - Commodities - 399 750 500 750 Percent Change 2016 vs 2015 Budget 0.00% 50 - Other Expenses 580.05 All Other Expenses 130 10 - - - 580.10 Consultant Fees - - - - - 50 - Other Expenses 130 10 - - - Percent Change 2016 vs 2015 Budget 0.00% 55 - Capital Outlay 555.10 Office and Other Equipment 12,567 4,429 4,500 4,500 4,500 555.30 Reserve for Capital Replacement 3,702 3,702 3,702 3,702 3,702 555.40 Reserve for Technology 5,438 4,488 3,000 3,000 3,000 555.50 Reserve for Buildings - 4,475 4,475 4,475 4,475 55 - Capital Outlay 21,707 17,094 15,677 15,677 15,677 Percent Change 2016 vs 2015 Budget 0.00% Department Total: 60 - Engineering 553,417 629,724 713,074 684,233 754,656 Percent Change 2016 vs 2015 Budget 5.83% 172 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 2016 through FY 2020  Capital Improvement Plan.  Funding for these transfers will come from prior accumulation of unreserved Corporate  Fund reserves.     A transfer of 20 percent of the Home Rule Sales Tax will be transferred to the Capital Projects Streets Fund to  supplement state revenues for the annual street maintenance program.  Budget Summary  Non‐Operating Transfers   FY 2014 FY 2015 Est. Actual FY 2016 Budget  Other Expenses                      157,732                             490,000                                     550,000   Other Financing Uses                  1,391,486                          2,994,418                                   2,080,022   Total                  1,549,218                         3,484,418                                  2,630,022      Budget Variance   Non‐Operating Transfers   Line Item  Number Description Percent  Change  Dollar  Amount  Change  Description of Change  580.05 All Other Expense 511.11% 460,000 Contingencies for Professional  Services  570.50 Motor Fuel Tax Fund ‐100.00% (679,205) Reclassed to other transfer  570.60 Arboretum Golf Course Fund ‐17.17% (32,130) Operating subsidy reduction  570.70 Buffalo Grove Golf Course Fund ‐7.69% (12,247) Operating subsidy reduction  570.30 Capital Projects Fund 93.60% 859,661 Reclassed from MFT transfer          1,549,218 3,484,418 2,630,022 Total Non-Operating Transfers FY 2014 FY 2015 Est. Actual FY 2016 Budget 174 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 100 - General Fund Department: 70 - Transfer Non-Operating Division: 40 - General Government 50 - Other Expenses 580.05 All Other Expense 59,010 157,732 90,000 490,000 550,000 50 - Other Expenses 59,010 157,732 90,000 490,000 550,000 Percent Change 2016 vs. 2015 511.11% 65 - Other Financing Uses 570.20 Debt Service Fund 202,605 - - - - 570.50 Motor Fuel Tax Fund - 767,602 679,205 727,890 - 570.60 Arboretum Golf Course Fund 58,960 - 187,150 205,404 155,020 570.70 Buffalo Grove Golf Course Fund 15,228 - 159,166 133,358 146,919 570.75 Health Insurance 532,066 (15,373) - - - 570.90 Police Pension Fund - - - - - 570.95 Fire Pension Fund - - - - - 65 - Other Financing Uses 808,859 752,229 1,025,521 1,066,652 301,939 -70.56% Division Total: 40 - General Government 867,869 909,961 1,115,521 1,556,652 851,939 -23.63% Division: 45 - Public Safety 65 - Other Financing Uses 570.90 Police Pension Fund 2,226,624 1,669 - - - 570.95 Fire Pension Fund 2,048,371 2,371 - - - 65 - Other Financing Uses 4,274,994 4,040 - - - 0.00% Division Total: 45 - Public Safety 4,274,994 4,040 - - - 0.00% Division: 50 - Public Works 65 - Other Financing Uses 570.30 Capital Projects Fund 729,135 635,217 918,422 1,927,766 1,778,083 65 - Other Financing Uses 729,135 635,217 918,422 1,927,766 1,778,083 93.60% Division Total: 50 - Public Works 729,135 635,217 918,422 1,927,766 1,778,083 93.60% Department Total: 70 - Transfer Non -Operating 5,871,998 1,549,218 2,033,943 3,484,418 2,630,022 29.31% 175 This page intentionally left blank. 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  Motor Fuel Tax Fund  Capital Projects‐ Facilities Fund  Capital Projects‐ Streets Fund                         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 i s 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 a ward. Staff continues to review and evaluate each project as we lead into the 2016 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 2016-2020 CIP, but this year, as in past years, not all projects presented here will ultimately receive funding within the proposed 2016 budget. Projects identified for FY 2016 total $9,618,083 and fall under six categories. The following chart illustrates each category’s percentage as it relates to funding the capital program for FY 2016. 179 The impact of the CIP on the 2016 budget and beyond will be significant as aging infrastructure needs to be addressed . The Water Meter Replacement project will continue throughout the current fiscal year. Replacing all the water meters village-wide will increase the accuracy of water usage billed and decrease repair and maintenance required by the Water Department. Each meter comes with a 20 year warranty. The Water Department will continue to service leaks and abnormal usage, but all installations and repairs in 2016 will be outsourced through the meter replacement program. The EAB program enters the fi nal year of the four year plan. All tree removals were completed in 2015. The final phase will be the completion of planting new trees and replacing the newly planted trees from 2014 and 2015 that did not survive. The Village has outsourced tree trimmin g maintenance which will be minimal for the next few years, however, as these trees mature over time the care and maintenance of parkway trees will increase. I nformation technology infrastructure and data sharing are high priority program s for the Village of Buffalo Grove. In the strategic plan the Village outlined the need to upgrade hardware and software. FY 2016 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 second 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 li fe cycle. Water Main & Sanitary Sewer 45% Buildings and Grounds 7% Technology 1% Storm Sewer 3% EAB 4% Street, Sidewalk & Bikepath 44% 2016 Capital Project Request by Category 180           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.  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 2016 budgeted vehicle purchases:  Unit # Description Department Cost    E 01   John Deere 1800 Utility Cart ‐01 Forestry $38,500   E 18 Gator ‐99 Forestry $62,000   FEL3 Volvo L90C Rubber Tire Loader ‐ 98 Street $150,000   450 Chevrolet 2500HD – 02 Water $38,000   452 GMC Savana Van ‐ 05 Water $35,000   413 Chevrolet Astro Van ‐ 00 Engineering $28,000   440 Chevrolet C3500 Man‐Lift ‐ 98 Building Maintenance $100,000   441 Chevrolet 2500HD ‐ 02 Building Maintenance $38,000   4 Ford Taurus – 05 Building/Code $25,000   5 Ford Taurus – 05 Building/Code $25,000   418 International 2654 – 97  Street $192,000   430 Chevrolet C2500 ‐ 98  Central Garage $110,900     Fleet Addition (Possible Utility Vehicle for Campus) Building Maintenance $25,000   431 International 2654 Man‐Lift – 92 Forestry $135,000   715 Ford Crown Victoria Replacement on Order 2015 DEL Police $26,561   723 Ford Crown Victoria Replacement on Order 2015 DEL Police $26,561   727 Ford Crown Victoria Replacement on Order 2015 DEL Police $26,561   740 Ford Crown Victoria Replacement on Order 2015 DEL Police $26,561   733 Ford Crown Victoria Replacement on Order 2015 DEL Police $24,800   226 Ford E‐450 Ambulance – 08 Fire $175,000   236 E‐One Aerial Platform ‐ 97 Fire $1,500,000   213 E‐One Rescue Pumper – 97 Fire $750,000   Total  $3,558,444    The street and streetscape programs will be active again in FY 2016.  The Dundee road median and streetscape  improvements will continue.   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, sanitary sewer systems, and storm sewer systems. These c apital outlays are ongoing and 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 avo id 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. 182 2016 Capital Projects Budgeted By Fund Capital Projects Fund - Facilities Requested Budgeted Carpet Capital Replacement Projects $166,595 $166,595 HVAC Unit Replacements $120,000 $120,000 Increase Apparatus Door Height - FS #25 $20,000 $20,000 Municipal Parking Facility Maintenance $125,000 $125,000 Replacement Antenna Tower FS #27 $26,000 $26,000 Roof Capital Replacement Projects $286,825 $286,825 EAB Ash Tree Replacement Program $500,000 $500,000 Public Works Software $55,940 $55,940 Vehicle Diesel Exhaust Extraction Retrofit - Fire $30,550 $30,550 Police Headquarters Jail Interlock Upgrade $30,075 $30,075 Police Headquarters Video Surveillance System $67,371 $67,371 Subtotal $1,428,356 $1,428,356 Capital Projects Fund - Streets Dundee Road Median Improvements $40,000 $40,000 Weiland Road/Lake Cook Road Improvements $50,000 $50,000 Dundee Road and Buffalo Grove Road Intersection $150,000 $150,000 Raupp Bridge Reconstruction $60,000 $60,000 Annual Street Maintenance $4,200,000 $1,749,727 Subtotal $4,500,000 $2,049,727 Water & Sewer Fund Lift Station Repair & Rehabilitation $560,000 $560,000 Pump House Repairs & Security Improvements $550,000 $550,000 Scada Improvements $200,000 $200,000 Village-wide Sanitary Sewer Replacement $1,175,000 $675,000 Village-wide Water Main Replacement $2,000,000 $500,000 Village-wide Water Meter Replacement $3,000,000 $3,000,000 Subtotal $7 ,485,000 $5,485,000 General Fund Annual Sidewalk/Bike Path Maintenance $325,000 $325,000 Storm Water System Upgrades and Repairs $330,000 $330,000 Subtotal $655,000 $655,000 Total $14,068,356 $9,618,083 183 15% 21% 57% 7% 2016 Capital Projects Budgeted By Fund Capital Projects Fund - Facilities Capital Projects Fund - Streets Water & Sewer Fund General Fund 184 2016-2020 Capital Project Request Summary Table 2016 2017 2018 2019 2020 Buildings and Grounds Improvements Carpet Capital Replacement Projects $166,595 $76,895 $107,674 - - Fire Sprinkler System - Fire Station 27 - - - $100,000 - HVAC Roof Top Unit Replacement $120,000 $120,000 $120,000 $120,000 $120,000 Increase Apparatus Door Height - Fire Station 25 $20,000 - - - - Municipal Parking Facility Maintenance $125,000 $110,000 $100,000 $100,000 $100,000 Replacement Antenna Tower - Fire Station 27 $26,000 - - - - Repurpose Administration Area - Fire Station 26 - $20,000 - - - Roof Capital Replacement Projects $286,825 $128,800 $294,700 - - Fire Station Sign Replacement - - $15,000 $15,000 $15,000 Vehicle Diesel Exhaust Extraction Retrofit - Fire $30,550 - - - - Subtotal $774,970 $455,695 $622,374 $320,000 $220,000 Emerald Ash Borer Response EAB Ash Tree Replacement Program $500,000 - - - - Subtotal $500,000 $0 $0 $0 $0 Street, Sidewalk & Bikepath Maintenance Annual Street Maintenance $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 Dundee Road Median Improvements $40,000 $40,000 $40,000 $40,000 $40,000 Dundee Road and Buffalo Grove Road Intersection $150,000 - - - - 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 $600,000 $500,000 $600,000 $100,000 Subtotal $4,825,000 $5,165,000 $5,065,000 $5,165,000 $4,665,000 Storm Water Management Storm Water System Upgrades and Repairs $330,000 $150,000 $150,000 $150,000 $150,000 Subtotal $330,000 $150,000 $150,000 $150,000 $150,000 Technology Police Headquarters Jail Interlock Upgrade $30,075 - - - - Police Headquarters Video Surveillance System $67,371 - - - - Public Works Software $55,940 $38,840 $38,840 $43,840 $38,840 Subtotal $153,386 $38,840 $38,840 $43,840 $38,840 Water Main & Sanitary Sewer Systems Lift Station Repair & Rehabilitation $560,000 $300,000 $300,000 $300,000 $300,000 Pump House Repairs & Security Improvements $550,000 $220,000 $110,000 $110,000 $110,000 Scada Improvements $200,000 $100,000 $60,000 $20,000 $20,000 Village-wide Sanitary Sewer Replacement $1,175,000 $400,000 $300,000 $300,000 $300,000 Village-wide Water Main Replacement $2,000,000 $750,000 $750,000 $750,000 $750,000 Village-wide Water Meter Replacement $3,000,000 - - - - Subtotal $7,485,000 $1,770,000 $1,520,000 $1,480,000 $1,480,000 Total $15,068,356 $7,579,535 $7,396,214 $7,158,840 $6,553,840 Grand Total 2016-2020 $42,756,785 185 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 • Insure 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 Trailer • Pump Stations 1, 2, 6, & 7 • BGGC & Arboretum Clubhouses, Halfway Houses, and Maintenance Buildings • Train Station and Warming Shelters • Youth Center  Carpet Capital Replacement Projects Summary: This category covers planned carpet replacements within Village facilities. On average the carpet to be replaced will be 3 – 5 years past the date it was scheduled to be replaced. 2016 projects includ e Fire Station #27 ($10,276), Police HQ ($50,932), Arboretum Banquet Room ($40,000), 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 2015, carpet replacements were budgeted on a year -by-year basis within the operating budgets for each department. As we continue to move toward capital reserves for Village owned buildings on the roof and HVAC side, the carpet replacement program will be managed in the same manner through the Capital Improvement Plan. Budget Impact: This project is funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $32,452 $ 32,452 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $166,595 $76,895 $107,674 - - $351,164 Equipment Contingency Sub-Total $166,595 $76,895 $107,674 - - $351,164 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.30 Initial Proposal Date: 2015 Project Coordinator: Public Works 187 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 stati on. Budget Impact: This project would be funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering - - - $ 1,000 - $ 1,000 Construction - - - $ 59,000 - $ 59,000 Equipment - - - $ 40,000 - $ 40,000 Contingency Sub-Total $ 0 $ 0 $0 $100,000 $0 $100,000 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.30 Initial Proposal Date: 2016 Project Coordinator: Fire 188 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 2016 include 4 units at Police Headquarters which are original to the building (Installed 1989 – deferred 8 years), a unit at Fire Station 27 (Installed 1991 – deferred 6 years), and the unit at the Public Service Center (Installed 2002 - due in 2020, but has a costly repair history). In all, 10 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $120,000 $120,000 $120,000 $120,000 $120,000 $600,000 Equipment Contingency Sub-Total $120,000 $120,000 $120,000 $120,000 $120,000 $600,000 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.30 Initial Proposal Date: 2015 Project Coordinator: Public Works 189 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $14,000 - - - - $14,000 Equipment $ 6,000 - - - - $ 6,000 Contingency Sub-Total $ 20,000 $ 0 $ 0 $0 $0 $ 20,000 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.30 Initial Proposal Date: 2016 Project Coordinator: Fire 190 Municipal Parking Facility Maintenance Summary: This program provides for the routine sealing, restriping, and reconstruction of municipal lots. The 2016 planned maintenance includes lots at the Metra train station, the Buffalo Grove Golf Course, and the Buffalo Grove Police Station. Budget Impact: This project is funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $48,000 $65,000 $74,100 $110,000 $170,000 $467,100 Actual Expenditures $50,000 $65,000 $67,000 $110,000 $170,000 $462,000 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $125,000 $110,000 $100,000 $100,000 $100,000 $535,000 Equipment Contingency Sub-Total $125,000 $110,000 $100,000 $100,000 $100,000 $535,000 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.40 Initial Proposal Date: Ongoing Project Coordinator: PW-Engineering 191 Replacement Antenna Tower – Fire Station 27 Summary: This project will replace the antenna structure at Fire Station 27 that was installed in 1991. The current tower is undersized for line of sight transmission and the type and number of antennas currently mounted, and is nearing the end of its useful life. Budget Impact: This project is funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $4,000 - - - - $ 4,000 Construction $12,000 - - - - $12,000 Equipment $10,000 - - - - $10,000 Contingency Sub-Total $26,000 $ 0 $ 0 $ 0 $ 0 $26,000 Category: Information Technology Fund: Capital Projects - Facilities Account Number: 150.75.560.40 Initial Proposal Date: 2012 Project Coordinator: PW-Engineering 192 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 pati ents (needed for privacy and HIPAA compliance) additional storage for EMS and Haz-Mat supplies and a work area for the part time Public Education Officer. Budget Impact: This project would be funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $ 0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction - $ 14,000 - - - $ 14,000 Equipment - $ 6,000 - - - $ 6,000 Contingency Sub-Total $ 0 $ 20,000 $ 0 $ 0 $ 0 $ 20,000 Category: Facilities Maintenance Fund: Capital Projects - Facilities Account Number: 150.75.560.30 Initial Proposal Date: 2016 Project Coordinator: Fire 193 Roof Capital Replacement Projects Summary: This category covers full roof replacements on Village owned buildings. For 2016, work is planned to include Village Hall ($107,800 ), Police HQ ($135,100), Metra Station ($21,000), Pump Station #6 ($21,000), and Well House #1 ($2,000) Prior to 2014 thes e 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $225,000 $0 $225,000 Actual Expenditures $0 $0 $ 0 $0 $197,766 $197,766 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $286,825 $128,800 $294,700 - - $ 710,325 Equipment Contingency Sub-Total $286,825 $128,800 $294,700 $0 $0 $ 710,325 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.40 Initial Proposal Date: 2014 Project Coordinator: Building Maintenance 194 Fire Station Sign Replacement – Fire Station 25, 26, 27 Summary: This proposal will address the current condition, future maintenance and visibility of the signs used to identify the three Buffalo Grove Fire Department fire stations. 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $ 0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction - - $ 15,000 $ 15,000 $ 15,000 $ 45,000 Equipment Contingency Sub-Total $ 0 $ 0 $ 15,000 $ 15,000 $ 15,000 $ 45,000 Category: Buildings and Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.30 Initial Proposal Date: 2016 Project Coordinator: Fire 195 Vehicle Diesel Exhaust Extraction Retrofit – Fire Stations Summary: This project will replace the current equipment that uses compressed air to fill a rubber sleeve that grips the exhaust pipe to capture the diesel exhaust. The current equipment is becoming problematic with increasing maintenance and replacement costs as there are many mechanical parts (compressors, air lines, rubber boots, etc.) that are reaching the end of their life expectancy. The retrofit replaces the air system with a magnetic collar eliminating the need for an air compressor, air lines, rubber boots and less overall parts to maintain. Budget Impact: This project is funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $ 0 $0 Actual Expenditures $0 $0 $ 0 $0 $ 0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction Equipment $ 30,550 - - - - $ 30,550 Contingency Sub-Total $ 30,550 $ 0 $ 0 $ 0 $ 0 $ 30,550 Category: Buildings and Grounds Improvements Account Number: 150.75.560.30 Initial Proposal Date: 2016 Project Coordinator: Fire 196 Emerald Ash Borer Response The Emerald Ash Borer (EAB) is a highly destructive, tree-killing insect that has been identified in the Village of Buffalo Grove’s urban forest. The unfortunate arrival of EAB will have a serious impact to Buffalo Grove’s environment and budget for several years. Over one third of the trees in Buffalo Grove’s urban forest have been removed . The Village began to prepare for the arrival of EAB in 2002 when it was first discovered in the United States. The purpose of this management plan is to manage EAB through the principles of Integrated Pest Management (IPM). Through these principles, the Village can take a fiscally responsible approach to this problem while limiting the hazards to our residents, property, and environment. The Village of Buffalo Grove has been a Tree City USA for over twenty years. The trees in our urban forest provide many social and economic benefits which are often overlooked. According to the USDA Forest Service, some benefits of our trees include helping cool temperatures in summer, improving real estate values, reducing storm water runoff, improving air quality, attracting wildlife, attracting shoppers to commercial areas, and contributing to the overall sense of community pride. These social and economic benefits are the reasons the Village of Buffalo Grove remains a desirable place to live and why the Village continues to commit to the care and maintenance of its urban forest. On October 15, 2012, the Village Board adopted the latest revision of the Emerald Ash Borer Management Plan which planned for the removal and replacement of nearly 7,000 Village-owned Ash trees over the following 4 years. The expenditures are being programmed in the Capital Improvement Plan due to the size, scope, and specif ic time period of this natural disaster. 197 EAB Ash Tree Replacement Program Summary: Over the next 2 years 2,000 remaining Ash Trees will need to be removed and 4,500 replaced due to Emerald Ash Borer infestation. The program will include tree removals, stump grinding, parkway restoration, tree purchases and a continued growing contract for 4,300 trees. Budget Impact: This project will be funded from the revolving line of credit. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $1,000,000 $1,000,000 $1,500,000 $3,500,000 Actual Expenditures $0 $350,000 $522,978 $1,301,905 $1,500,000 $3,674,883 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $500,000 - - - - $500,000 Equipment Contingency Sub-Total $500,000 - - - - $500,000 Category: Natural Disasters Fund: Capital Projects - Facilities Account Number: 150.75.560.40 Project Coordinator: Public Works 198 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 p rojects 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 from the State of Illinois. A bond issue in 2012 allowed for a large catch-up project in 2013. The majority of work to be performed during the 2016 construction season will be for the rehabilitation of street surface and curb/gutter along various identified local streets as well as a patching program designed to extend the life of various streets. Th e following streets were identified from the results of the pavement inspection program and are scheduled for repair in 2016 depending upon funding availability: Street Miles Gregg Lane 0.18 Lauren Lane 0.18 Mohawk Trail 0.30 Dundee Parkway 0.14 Golfview Terrace (N of Dundee) 0.03 Plum Grove Circle 0.38 Covington Terrace 0.14 Parkview Terrace 0.29 Brentwood Terrace 0.08 Golfview Terrace (S of Dundee) 0.12 TOTAL 1.84 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 199 Annual Street Maintenance Summary: The annual street maintenance and rehabilitation program is covered in each year’s CIP. In 2013 the Village completed a complete pavement evaluation study of all Village streets. This study plus continued annual review of Village Roads helped plan the next five years of street maintenance and is reflected in the FY 2016 Projected Expenditures below. Also included is an updating of the Village Benchmark system. 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $1,750,000 $1,700,000 $5,950,000 $2,250,000 $1,800,000 $14,329,045 Actual Expenditures $1,207,750 $4,078,000 $5,684,476 $2,014,665 $1,800,000 $14,982,008 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $450,000 $450,000 $450,000 $450,000 $450,000 $ 2,250,000 Construction $3,750,000 $3,750,000 $3,750,000 $3,750,000 $3,750,000 $18,750,000 Equipment - - - - - - Contingency Sub-Total $4,200,000 $4,200,000 $4,200,000 $4,200,000 $4,200,000 $21,000,000 Category: Street, Sidewalk & Bike Path Maintenance Fund: Motor Fuel Tax Account Number: 130.75.560.20 Initial Proposal Date: Ongoing Project Coordinator: PW-Engineering 200 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. This remains a low priority project and although budgeted in past years, no expenses have been incurred to date. Budget Impact: This project is funded through an internal transfer from the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $40,000 $40,000 $80,000 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering 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: 160.562.20 Initial Proposal Date: 2013 201 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 2016 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. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Actual Expenditures $ 0 $0 $ 0 $ 0 $ 0 $ 0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $150,000 - - - - $150,000 Equipment Contingency Sub-Total $150,000 - - - - $150,000 Category: Street, Sidewalk & Bike Path Maintenance Fund: Capital Projects - Streets Account Number: 160.562.20 Initial Proposal Date: 2015 Project Coordinator: PW-Engineering 202 Raupp Boulevard Bridge Reconstruction Summary: This project covers the evaluation and subsequent design and construction of needed improvements to the Raupp Boulevard Bridge. Phase I design engineering was completed in 2013 and Phase II was completed in 2014. Phase III Construction was completed in 2015. Project paperwork and Federal grant closeout is expected to last into 2016. Significant funding (80%) is 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $ 23,000 $ 32,000 $ 40,000 $ 40,000 $ 392,000 $ 527,000 Actual Expenditures $ 41,469 $ 6,272 $ 40,297 $ 40,000 $ 400,000 $ 527,741 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $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 203 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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $150,000 $325,000 $100,000 $325,000 $325,000 $1,225,000 Actual Expenditures $149,964 $325,000 $108,000 $325,000 $250,000 $1,157,964 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering 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 204 Weiland Road/Prairie Road/Lake Cook Road Improvement Summary: Lake County Department of Transportation is to provide a percentage reimbursement of the original full study cost after completion of the Weiland Road/Prairie Road portion of the Phase II Study. The Cook County Highway and Transportation Department is paying for the Phase I and Phase II expenses except for Village facility costs along the Lake Cook Road Corridor. The remaining expenditures are being funded through an internal transfer from the General Fund. Budget Impact: This project is funded through an internal transfer from the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $335,633 $234,054 $100,452 $113,000 $113,000 $896,139 Actual Expenditures $136,255 $299,012 $100,000 $113,000 $113,000 $761,267 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $50,000 - - - - $50,000 Construction - $600,000 $500,000 $600,000 $100,000 $1,800,000 Equipment Contingency Sub-Total $50,000 $600,000 $500,000 $600,000 $100,000 $1,850,000 Category: Street, Sidewalk & Bike Path Maintenance Fund: Capital Projects - Streets Account Number: 160.562.20 Initial Proposal Date: 2008 Project Coordinator: PW-Engineering 205 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 throu gh 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. But, 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. It is anticipated that the storm sewer system repair program will be an ongoing need. 206 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. Funding is also being requested to add storm sewer to a portion of the Cook County area in conjunction with the Annual Street Maintenance Program and to add additional under drains to the Jackson Drive Detention Basin in Wheeling. Finally, for 2016, funding is being requested to perform a GPS inventory of all pipes, catch basins, streams, retention/detention basins, and related infrastructure for the purposes of quantifying the system and providing a more detailed long-range capital replacement program. Budget Impact: This project is funded through the Village’s Stormwater Utility Fee. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $200,000 $200,000 $200,000 $600,000 Actual Expenditures $0 $0 $200,000 $200,000 $250,000 $650,000 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $ 80,000 - - - - $ 80,000 Construction $ 250,000 $150,000 $150,000 $150,000 $150,000 $ 850,000 Equipment Contingency Sub-Total $330,000 $150,000 $150,000 $150,000 $150,000 $930,000 Category: Storm Sewer Fund: General Fund Account Number: 100.55.25.560.40 Initial Proposal Date: 2013 Project Coordinator: PW-Engineering 207 Technology The Village of Buffalo Grove’s Information Technology (IT) provider is responsible for maintenance of local and wide area networks that facilitate effective interdepartmental communication among Village offices and facilities. The Village made a strategic move to join 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 Server s • 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 da ta systems of three fire stations, two golf courses, Police headquarters, Public Works, and Village Hall. Technology is a key part of the Village’s vision and mission and that is reflected in this year’s CIP requests.  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 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $ 30,075 - - - - $ 30,075 Equipment Contingency Sub-Total $ 30,075 $ 0 $ 0 $ 0 $ 0 $ 30,075 Category: Technology Fund: Capital Projects - Facilities Account Number: 150.75.560.50 Initial Proposal Date: 2014 Project Coordinator: Police 209 Police Headquarters Video Surveillance System Summary: The aging and failing video surveillance cameras at the Police Department are divided between two separate systems. The Rapid Eye cameras monitor the exterior doors/lobby and the Speco system monitors the prisoner intake and processing areas. This system is governed and inspected by the Illinois Department of Corrections. The recommendation is to have one digital system. Budget Impact: This project is funded through the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $0 $0 $0 Actual Expenditures $0 $0 $ 0 $0 $0 $0 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $ 67,371 - - - - $ 67,371 Equipment Contingency Sub-Total $ 67,371 $ 0 $ 0 $0 $0 $ 67,371 Category: Buildings & Grounds Improvements Fund: Capital Projects - Facilities Account Number: 150.75.560.50 Initial Proposal Date: 2014 Project Coordinator: Police 210 Public Works Software/Database Upgrades Summary: Due to the decreased size of an already lean Public Works Department, efficiencies in daily activities need to be realized. In 2014, Public Works identified Cartegraph OMS as the best software solution for Asset Management and Work Order Management moving forward. Implementation has been broken down into three phases, with Phases I and II projected to be completed in 2015. In 2016, Phase III will focus on the asset management modules of Storm and Sanitary Sewers, Lift Stations, and Building Maintenance. Budget Impact: This project is funded through an internal transfer from the General Fund’s operating revenues. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $ 0 $37,000 $126,970 $163,970 Actual Expenditures $0 $0 $ 0 $28,000 $110,000 $138,000 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Hardware/Servers $5,000 - - $ 5,000 - $ 10,000 Software & Training $50,940 $38,840 $38,840 $ 38,840 $38,840 $206,300 Contingency Sub-Total $55,940 $38,840 $38,840 $43,840 $38,840 $216,300 Category: Technology Fund: Capital Projects - Facilities Account Number: 150.75.560.50 Initial Proposal Date: 2013 Project Coordinator: PW-Admin 211 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 2007 the only capital expense was $229,527 for the St. Mary’s Pkwy water ma in replacement. In the five year period between 2008 and 2013, there was $1,997,566 in capital expenses 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 throug h Village owned and maintained sanitary sewer mains. The wastewater is then routed to either Lake County Public Works or Metropolitan Water Reclamation District (Cook County). Expenditures in this category historically include repairs and reliability enhancements to the water and wastewater systems.  Lift Station Repair & Rehabilitation Program Summary: This program provides for continued pump replacement work and emergency generator replacement at the Camelot Lift Station ($50,000), repair and rehabilitation of the Golfview Lift Station ($430,000), 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 interior painting. Budget Impact: This program is funded by the Water & Sewer Fund Reserves. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $300,000 $300,000 $780,000 $530,000 $560,000 $2,470,000 Actual Expenditures $290,000 $48,898 $976 $530,000 $575,000 $1,444,874 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $60,000 $30,000 $30,000 $30,000 $30,000 $ 180,000 Construction $480,000 $270,000 $270,000 $270,000 $270,000 $1,560,000 Equipment $20,000 - - - - $20,000 Contingency Sub-Total $560,000 $300,000 $300,000 $300,000 $300,000 $1,760,000 Category: Water Main & Sanitary Sewer Fund: Water & Sewer Fund Account Number: 170.55.36.560.70 Initial Proposal Date: 2001 Project Coordinator: Public Works 213 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 2016, the skylight and removable wall work at Well #6 is expected to carry over , with access hatch security improvements and other pump house improvements scheduled to commence. Moving forward, an improved electrical feed to station 7 and well maintenance at sites 1 & 2 are being programmed at this time. Budget Impact: This program is funded by the Water & Sewer Fund Reserves. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $600,000 $600,000 $610,318 $550,000 $550,000 $2,910,318 Actual Expenditures $0 $0 $17,209 $300,000 $400,000 $717,209 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $ 50,000 $ 20,000 $ 10,000 $ 10,000 $10,000 $100,000 Construction $500,000 $200,000 $100,000 $100,000 $100,000 $1,100,000 Equipment Contingency Sub-Total $550,000 $220,000 $110,000 $110,000 $110,000 $1,100,000 Category: Water Main & Sanitary Sewer Fund: Water & Sewer Fund Account Number: 170.55.35.560.60 Initial Proposal Date: 2010 Project Coordinator: PW-Engineering 214 SCADA Improvements Summary: Implement recommended improvements as detailed in the SCADA System Master Plan. The main goal for 2016 is to reestablish reliable radio connections to the well and 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 manufacturer obsolescence. Budget Impact: This program is funded by the Water & Sewer Fund Reserves. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $ 0 $77,000 $85,800 $200,000 $362,800 Actual Expenditures $0 $ 0 $0 $129,042 $25,000 $254,042 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction Equipment $200,000 $100,000 $60,000 $20,000 $20,000 $400,000 Contingency Sub-Total $200,000 $100,000 $60,000 $20,000 $20,000 $400,000 Category: Technology Fund: Water & Sewer Account Number: 170.55.35.560.60 Initial Proposal Date: 2012 Project Coordinator: Public Works 215 Village-wide 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. Two major interceptors are in need of lining, BG Road, completed in 2015 and Old AH Road which is planned for 2016 ($600k) and both interceptor’s manholes as well as other sanitary manholes in Cook County need to be lined to protect the manholes (100k). The sanitary force main from the Linden Avenue Lift Station is scheduled for replacement in 2016 ($300k). The annual sewer televising program is planned to review approximately 10% of the total Village’s sanitary sewer system ($100k) every year and additional smoke testing is planned for 2016 ($50k). Budget Impact: This program is funded by the Water & Sewer Fund Reserves. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $650,000 $0 $700,000 $850,000 $2,200,000 Actual Expenditures $0 $650,000 $0 $700,000 $750,000 $2,100,000 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $25,000 $25,000 Construction $1,150,000 $400,000 $300,000 $300,000 $300,000 $2,450,000 Equipment Contingency Sub-Total $1,175,000 $400,000 $300,000 $300,000 $300,000 $2,475,000 Category: Water Main & Sanitary Sewer Fund: Water & Sewer Fund Account Number: 170.55.36.560.70 Initial Proposal Date: 2012 Project Coordinator: PW-Engineering 216 Village-wide Water Main Replacement Program Summary: This program provides for water main replacements at priority locations in older portions of the Village as identified through the Water Service Interruption Reports. Projects have been identified at several locations within the Cambridge Countryside and Buffalo Grove Unit 5 Subdivisions. A total of approximately 10,000 lineal feet is included. Budget Impact: This program is funded by the Water & Sewer Fund Reserves. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $160,000 $1,376,000 $1,000,000 $2,536,000 Actual Expenditures $0 $0 $0 $1,376,000 $400,000 $1,776,000 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering $200,000 $65,000 $65,000 $65,000 $65,000 $460,000 Construction $1,800,000 $685,000 $685,000 $685,000 $685,000 $4,540,000 Equipment Contingency Sub-Total $2,000,000 $750,000 $750,000 $750,000 $750,000 $5,000,000 Category: Water Main & Sanitary Sewer Fund: Water & Sewer Fund Account Number: 170.55.35.560.60 Initial Proposal Date: 2012 Project Coordinator: PW-Engineering 217 Villagewide Water Meter Replacement Summary: This program provides for water meter replacements at all customer sites, while also establishing a Advanced Metering Infrastructure (AMI) to allow for remote reading of meters and increased customer service through real time data. The project is currently being evaluated as a performance contracting project with Siemen’s, but could also occur as a sta ndalone project managed by the Village. Budget Impact: This program would likely be funded as a performance contracting project, where future cost savings would fund the initial capital investment. 5 Year Expenditure History Budgeted Amount FY 2011 FY 2012 FY 2013 FY 2014 Estimated TOTAL FY 2015 $0 $0 $0 $0 $6,000,000 $6,000,000 Actual Expenditures $0 $0 $0 $0 $3,000,000 $3,000,000 5 Year Projected Expenditures Expense Category FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 TOTAL Land Engineering Construction $3,000,000 - - - - $3,000,000 Equipment Contingency Sub-Total $3,000,000 - - - - $3,000,000 Category: Water Main & Sanitary Sewer Fund: Water & Sewer Fund Account Number: 170.55.35.560.60 Priority Score: 17 Initial Proposal Date: 2014 Project Coordinator: Finance 218 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 i s 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 rep lacement 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 2016 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, $6.5 million is in the reserve account and the table below shows the projected replacement costs through 2022. 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 purchas e 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 Contribution by Department - Vehicles Department 2016 2017 2018 2019 2020 2021 2022 Subtotal Fire Services $2,425,000 $440,873 $0 $1,873,054 $1,090,553 $0 $0 $5,829,480 Police Services $131,044 $212,887 $66,715 $167,790 $202,002 $226,243 $184,558 $1,191,239 Building & Zoning $50,000 $0 $52,659 $22,400 $31,116 $0 $28,632 $184,807 Engineering $28,000 $0 $0 $27,965 $0 $0 $32,160 $88,125 Building Maintenance $163,000 $0 $0 $0 $0 $121,550 $52,168 $336,718 Street Maintenance $342,000 $0 $0 $419,571 $202,300 $0 $176,710 $1,140,581 Forestry & Grounds $235,500 $0 $0 $31,544 $142,484 $156,733 $0 $566,261 Water $73,000 $0 $56,850 $130,000 $91,216 $100,338 $0 $451,404 Sanitary Sewer $0 $0 $110,800 $28,000 $46,200 $0 $33,917 $218,917 Storm Sewer $0 $0 $0 $0 $68,750 $0 $103,125 $171,875 Central Garage $110,900 $0 $0 $0 $170,471 $0 $51,585 $332,956 Buffalo Grove Golf Club $0 $0 $0 $0 $0 $0 $0 $0 Arboretum Golf Course $0 $0 $0 $0 $0 $0 $0 $0 Totals $3,558,444 $653,760 $287,024 $2,700,324 $2,045,092 $604,864 $662,854 $10,512,362 219 The following graph projects the balance of the Reserve for Capital Replacement for Vehicles assuming a yearly funding level of $600,000. The graph below charts total replacement cost against the capital reserve fund balance. All vehicles have an estimated replacement value of $13.2 million. The two lines show where the Village was as the budget was proposed last year (201 5 est.) vs the proposed 2016 Budget (2016 est.). The improved funding ratio from 2019 through 2021 is directly attributed to the outsourcing of the Golf departmen t maintenance for both Arboretum and Buffalo Grove Golf Club. The Golf department’s capital reserve total remains the same, however the amount has been reallocated from vehicles (555.30) to irrigation (555.60). $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2016 2017 2018 2019 2020 2021 2022 Projected Reserve Balance - Vehicles -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 2015 2016 2017 2018 2019 2020 2021 Projected Funding Ratio Est 2016 Est 2015 220 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. FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Capital Equipment 2,014,666 1,679,205 1,000,000 Other Financing Uses - - - Total 2,014,666 1,679,205 1,000,000 2,014,666 1,679,205 1,749,728 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Total Motor Fule Tax FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 221 Revenues Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 130 - Motor Fuel Tax Fund Revenues 15 - Other Taxes 410 State Shared - - - - - 410.60 State Shared Motor Fuel Tax 997,371 1,045,913 1,000,000 940,000 1,000,000 15 - Other Taxes 997,371 1,045,913 1,000,000 940,000 1,000,000 Percent Change 2016 vs 2015 Budget 0.00% 45 - Interest Income 450 Investment Revenue - - - - - 450.10 Interest Income -Investment Pool 141 32 - - - 45 - Interest Income 141 32 - - - Percent Change 2016 vs 2015 Budget 0.00% 50 - Miscellaneous Revenue All Other Revenue - - - - - 465.65 Grants - 375,164 - - - 465.90 Miscellaneous Income 187,582 - - - - 470 Bond Proceeds - - - - - 50 - Miscellaneous Revenue 187,582 375,164 - - - Percent Change 2016 vs 2015 Budget 0.00% 55 - Operating Transfers 460 Operating Transfers - - - - - 460.05 Interfund Transfers In - 767,602 679,205 727,891 - 55 - Operating Transfers - 767,602 679,205 727,891 - Percent Change 2016 vs 2015 Budget -100.00% Revenues Total 1,185,095 2,188,711 1,679,205 1,667,891 1,000,000 Percent Change 2016 vs 2015 Budget -40.45% 222 Expenditures Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 130 - Motor Fuel Tax Fund Expenditures Department: 75 - Capital Improvement 55 - Capital Outlay 560 Capital Projects - - - - - 560.20 Streets & Highways 5,684,477 2,014,666 1,679,205 1,679,205 1,000,000 55 - Capital Outlay 5,684,477 2,014,666 1,679,205 1,679,205 1,000,000 Percent Change 2016 vs 2015 Budget 0.00% 65 - Other Financing Uses 570.15 Capital Projects Streets - - - - - 570.30 Capital Projects Fund - - - - - 65 - Other Financing Uses - - - - - Percent Change 2016 vs 2015 Budget 0.00% Department Total: 75 - Capital Improvement 5,684,477 2,014,666 1,679,205 1,679,205 1,000,000 Percent Change 2016 vs 2015 Budget 0.00% Expenditures Total 5,684,477 2,014,666 1,679,205 1,679,205 1,000,000 Percent Change 2016 vs 2015 Budget 0.00% 223           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 2016 portion of  the Village’s comprehensive Capital Improvement Plan for the FY 2016 through FY 2020. 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   FY 2014 FY 2015 Est. Actual FY 2016 Budget  Capital Outlay 2,018,451 2,877,766 1,428,356  Total 2,018,451 2,877,766 1,428,356    Budget Variance   CP‐Facilities   Line Item  Number Description Percent  Change  Dollar Amount  Change Description of Change  560.10 Land Improvements ‐100.00% (647,000) Reduction based on Capital  Improvement plan  560.30 Buildings & Structures ‐41.14% (541,671) Reduction based on Capital  Improvement plan  560.40 Improvements Other  Than Building ‐66.67% (1,000,000) Reduction based on Capital  Improvement plan  560.50 Technology 20.80% 26,416 Cartegraph              2,018,451 2,877,766 1,428,356 Total Facilities Fund  FY 2014 FY 2015 Est. Actual FY 2016 Budget  Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 150 - Capital Projects Facilities Fund Revenues 50 - Miscellaneous Revenue 465 All Other Revenue - - - - - 465.65 Grants - - - - - 465.90 Miscellaneous Income 565 - 2,722,189 2,700,000 500,000 470 Bond Proceeds - - - - - 50 - Miscellaneous Revenue 565 - 2,722,189 2,700,000 500,000 Percent Change 2016 vs 2015 Budget -81.63% 55 - Operating Transfers 460 Operating Transfers - - - - - 460.05 Interfund Transfers In 319,973 635,217 868,422 1,377,766 928,356 55 - Operating Transfers 319,973 635,217 868,422 1,377,766 928,356 Percent Change 2016 vs 2015 Budget 6.90% Revenues Total 320,538 635,217 3,590,611 4,077,766 1,428,356 Percent Change 2016 vs 2015 Budget -60.22% Expenditures Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Expenditures Department: 75 - Capital Improvement 55 - Capital Outlay 560 Capital Projects 2,425 - - - - 560.10 Land Improvements 114,040 (74,183) 647,000 119,623 - 560.20 Streets & Highways - - - - - 560.30 Buildings & Structures 53,311 208,941 1,316,641 1,102,246 774,970 560.40 Improvements Other Than Building 956,103 1,383,234 1,500,000 1,500,000 500,000 560.50 Technology 150,196 500,459 126,970 155,897 153,386 55 - Capital Outlay 1,276,075 2,018,451 3,590,611 2,877,766 1,428,356 Percent Change 2016 vs 2015 Budget -60.22% Department Total: 75 - Capital Improvement 1,276,075 2,018,451 3,590,611 2,877,766 1,428,356 Percent Change 2016 vs 2015 Budget -60.22% 225 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 2016 through FY 2020 . Proceeds for the street maintenance fund are funded through transfers from the General Fund. Budget Summary CP-Streets FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Capital Outlay 1,149,921 782,442 1,049,727 Total 1,149,921 782,442 1,049,727 Budget Variance CP-Streets Line Item Number Description Percent Change Dollar Amount Change Description of Change 560.20 Streets & Highways 1999.45% 999,727 Reclassed from Motor Fuel Tax Fund 1,149,921 782,442 1,049,727 Total Streets Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 226 Revenues Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 160 - Capital Projects Streets Fund Revenues 50 - Miscellaneous Revenue 465 All Other Revenue - - - - - 465.65 Grants - 1,985,000 - - - 465.90 Miscellaneous Income 299,818 - - - - 470 Bond Proceeds - - - - - 50 - Miscellaneous Revenue 299,818 1,985,000 - - - Percent Change 2016 vs 2015 Budget 55 - Operating Transfers 460 Operating Transfers - - - - - 460.05 Interfund Transfers In 409,162 - 50,000 50,000 1,049,727 55 - Operating Transfers 409,162 - 50,000 50,000 1,049,727 Percent Change 2016 vs 2015 Budget Revenues Total 708,980 1,985,000 50,000 50,000 1,049,727 Percent Change 2016 vs 2015 Budget 1,999.4% Expenditures Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Expenditures Department: 75 - Capital Improvement 55 - Capital Outlay 560 Capital Projects - - - - - 560.20 Streets & Highways 388,451 1,149,921 50,000 782,442 1,049,727 55 - Capital Outlay 388,451 1,149,921 50,000 782,442 1,049,727 Percent Change 2016 vs 2015 Budget 1,999.4% Department Total: 75 - Capital Improvement 388,451 1,149,921 50,000 782,442 1,049,727 Percent Change 2016 vs 2015 Budget 1,999.4% Expenditures Total 388,451 1,149,921 50,000 782,442 1,049,727 Percent Change 2016 vs 2015 Budget 1,999.4% 227 This page intentionally left blank. 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 a retail activity. Golf Course Fees A conservative increase was budgeted for the Arb oretum in FY 2016 over the estimated actual of $32,951, or 2.7 percent. As the golf industry as a whole has started to stabilize, the Arboretum is estimated to achieve 100% of budgeted revenues of $1,173,900 in FY 2015. As the 2015 season did receive inc lement weather patterns in the month of June, paid rounds were increased in late summer, which allowed the Arboretum to hit the budgeted revenues. The Arboretum does have a rate increase of $1.00 proposed for weekend premium green fees for the 2016 season. Total golf revenues at the Buffalo Grove Golf Club in 2015 will result in achieving nearly 100% of budgeted revenue goals of $1,104,930 as well. As Buffalo Grove Golf Club experienced the same weather issues as the Arboretum in the month of June, the operation was able to rebound in the second half of the season by increasing total revenues 5% in Q3FY2015. The FY2016 budget for Buffalo Grove Golf Club does include a rate increase of $1 on higher demanded green fees; however, this still represents a 15% discount for residents of the village. 401 Half Day Road, Buffalo Grove, IL 60089 | www.vbg.org | (847) 459-5520 231 Department Structure Village Manager Deputy Village Manager Golf Operations Buffalo Grove Golf Course Pro Shop Reliable Property Services Arboretum Golf Course Pro Shop Reliable Property Services 232 2016 Staffing Summary In 2015, the Golf Department outsourced the golf course maintenance function. The change in staffing is reflected below: Golf Operations FY 2014 FY 2015 FY 2016 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 15 0 30 Golf Course Cashier- Seasonal 0 9 0 9 0 0 Golf Maintenance worker I 0 0 0 0 0 0 Golf Course Maintenance Worker- Seasonal 0 14 0 14 0 0 Golf course maintenance worker II 1 0 1 0 0 0 Golf course maintenance worker III 1 0 1 0 0 0 Golf Course starter/ranger- seasonal 0 11 0 11 0 0 Golf Course Superintendent 1 0 1 0 0 0 Horticulturalist 1 0 1 0 0 0 Total 7 51 7 51 3 32 Full & Part -Time Total 58 58 35 *Golf maintenance was outsourced in 2015 Strategic Priorities and Measures Golf Department Strategic Priorities Measure Average Baseline Q1 Q2 Q3 Service Optimization No Measure Identified N/A N/A N/A N/A Organizational Culture No Measure Identified N/A N/A N/A N/A Revenue Growth Cart Fee Revenue $107,963 $2,705 $136,2700 $184,914 Revenue Growth Total Merchandise Revenues $59,111 $79,840 $40,169 $57,32. Revenue Growth Green Fee Revenue $423,036 $23,183 $526,718 $719,206 Revenue Growth Total Revenue $443,663 $152,800. $831,111 $1,073,296 Economic Development No Measure Identified N/A N/A N/A N/A Infrastructure Stability No Measure Identified N/A N/A N/A N/A Village staff is in the process of implementing a performance management program. During the first year of the program departments are establishing baseline performance. This baseline is currently determined by averaging the past four quarters of performance data. 233 Budget Summary Buffalo Grove Golf Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 527,577 342,400 341,380 Personal Benefits 146,168 99,700 96,722 Operating Expenses 145,679 603,082 618,900 Contractual Services 26,822 25,361 15,361 Repairs & Maintenance 101,275 14,935 17,000 Capital Outlay 45,591 63,500 88,600 Commodities 141,908 66,000 64,000 All Other Expenses 33,782 1,000 1,000 Total 1,168,803 1,215,978 1,242,963 234 Budget Variance Buffalo Grove Golf Fund Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 500.05 Full Time (36.05%) (109,354) Outsourced maintenance 500.10 Part Time (53.58%) (56,550) Outsourced maintenance 500.15 Seasonal (19.83%) (23,740) Outsourced maintenance 500.35 Overtime (100.00%) (13,500) Outsourced maintenance 500.40 Longevity 20.00% 400 Employee milestone 505.05 Group & Medical Life (47.76%) (32,000) Outsourced maintenance 505.10 Professional Training (50.00%) (250) Outsourced maintenance 505.15 Dues & Memberships (24.00%) (600) Discontinued memberships 505.35 Safety Equipment (100.00% (800) Outsourced maintenance 505.75 Employer's Contribution - FICA (33.23%) (10,891) Outsourced maintenance 505.80 Employer's Contribution - IMRF (41.86%) (23,447) Outsourced maintenance 505.85 Employer's Contribution Medicare (33.23%) (2,547) Outsourced maintenance 510.02 Telephone (72.22%) (3,900) Outsourced maintenance 510.04 Travel (100.00%) (250) Reduction in training 510.10 Maintenance Contracts New 384,052 Outsourced maintenance 510.20 Computer Services (100.00) (7,500) Reduction in services 510.21 IT Internal Svc Contribution (30.68%) (6,179) Recalibrated cost basis 510.70 Merchandise Purchases 11.11% 5,000 Increase of special orders 510.76 Driving Range New 3,000 Improvements to facility 510.79 Advertising & Promotions New 5,000 Enhanced marketing plan 510.85 State Sales Tax 14.04% 720 Based on increase of merchandise sales 535.01 Building Mnt Internal Svc (35.35%) (45,397) Recalibrated cost basis 515.10 Unemployment Insurance (40.00%) (10,000) Outsourced maintenance 535.35 Golf Course New 4,000 Improvements to facility 535.40 Irrigation System New 5,000 Improvements to facility 545.05 Gasoline (68.00%) (17,000) Outsourced maintenance 545.10 Diesel Fuel (100.00%) (1,000) Outsourced maintenance 545.15 Automotive Parts (100.00%) (1,000) Outsourced maintenance 550.05 Department Equipment (100.00%) (20,000) Outsourced maintenance 530.45 Chemicals and Fertilizers (100.00%) (65,000) Outsourced maintenance 530.50 Small Equipment Tools & Hardware (100.00%) (1,000) Outsourced maintenance 555.10 Office and Other Equipment (100.00%) (500) Outsourced maintenance 555.30 Reserve for Capital Replacement (100.00%) (30,000) Closed to reserve for i nfrastructure 560.80 Golf Course (20.00%) (4,000) Outsourced maintenance 580.05 All Other Expenses New 1,000 Misc expenditures 555.60 Reserve for Infrastructure New 59,600 Reclassed from building maintenance and golf funds 235 1,168,803 1,215,978 1,242,963 Total BG Golf FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 236 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 180 - Buffalo Grove Golf Fund 40 - Charges for Services 445.10 Greens Fees 641,610 630,964 665,000 640,000 655,000 445.15 Power Cart Rental 162,592 157,610 165,000 160,000 162,000 445.20 Pull Cart Rental 3,681 2,692 3,000 3,500 3,500 445.25 Driving Range Fees 57,012 61,338 61,500 62,000 61,500 445.30 Memberships & Passes 63,837 62,471 64,000 62,500 62,500 445.35 Merchandise Sales 60,072 62,895 57,000 63,000 65,000 445.36 Coupon Sales - - - - - 445.40 Sales Tax 4,934 5,601 5,130 5,670 5,850 445.50 GPS Income - - - - - 445.55 Club Rental Fees 1,005 1,210 1,100 1,100 1,100 445.56 Locker Room Rental 131 - - - - 445.57 Club Storage 175 365 200 200 200 445.60 Rental Income Facility 33,557 43,422 40,000 40,000 40,000 445.65 Rental Income Cell Tower - 25,107 28,000 28,000 29,500 445.70 Utility Reimbursement 41,658 27,621 15,000 15,000 15,000 445.90 Other Revenue - 92 - - - 40 - Charges for Services 1,070,262 1,081,389 1,104,930 1,080,970 1,101,150 Percent Change 2016 vs 2015 Budget -0.34% 45 - Interest Income 450.05 Savings - - - - - 450.10 Investment Pool - - - - - 45 - Interest Income - - - - - Percent Change 2016 vs 2015 Budget 0.00% 50 - Miscellaneous Revenue 465.65 Grants - - - - - 465.90 Miscellaneous Income 2,235 (5,745) 500 1,650 500 50 - Miscellaneous Revenue 2,235 (5,745) 500 1,650 500 Percent Change 2016 vs 2015 Budget 0.00% 55 - Operating Transfers 460.05 Interfund Transfers In 15,228 - 159,166 133,358 146,919 55 - Operating Transfers 15,228 - 159,166 133,358 146,919 Percent Change 2016 vs 2015 Budget -7.69% Revenues Total 1,087,726 1,075,643 1,264,596 1,215,978 1,248,569 Percent Change 2016 vs 2015 Budget -1.27% 237 Expense Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Department: 84 - Golf 10 - Salaries 500.05 Full Time 257,686 299,063 303,334 220,000 193,980 500.10 Part Time 127,697 113,392 105,550 35,000 49,000 500.15 Seasonal 97,038 98,905 119,740 85,000 96,000 500.35 Overtime 16,828 13,818 13,500 - - 500.40 Longevity 2,900 2,400 2,000 2,400 2,400 10 - Salaries 502,149 527,577 544,124 342,400 341,380 Percent Change 2016 vs 2015 Budget -37.26% 15 - Taxes and Benefits 505.05 Group & Medical Life 42,913 43,431 67,000 35,000 35,000 505.10 Professional Training 80 460 500 - 250 505.15 Dues & Memberships 2,142 2,357 2,500 1,700 1,900 505.25 Uniform Maintenance 1,274 1,094 3,000 - - 505.26 Uniform Rental - - - - - 505.35 Safety Equipment - 247 800 - - 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 32,669 32,775 22,000 21,884 505.80 Employer's Contribution - IMRF 91,432 58,269 56,017 36,000 32,570 505.85 Employer's Contribution Medicare - 7,641 7,665 5,000 5,118 15 - Taxes and Benefits 137,842 146,168 170,257 99,700 96,722 Percent Change 2016 vs 2015 Budget -43.19% 25 - Operating Expenses 510.02 Telephone 6,099 3,414 5,400 1,500 1,500 510.03 Postage - - - - - 510.04 Travel 320 238 250 - - 510.10 Maintenance Contracts 476 3,859 - 346,325 384,052 510.16 Printing 398 412 500 400 500 510.20 Computer Services 7,245 7,547 7,500 - - 510.21 IT Internal Svc Contribution - - 20,140 16,963 13,961 510.28 Audit Fees - - 1,500 - 1,500 510.40 Supplies - Office 3,568 3,152 3,500 3,600 3,500 510.49 Supplies - Golf Course 6,882 3,578 7,000 6,500 7,000 510.50 Supplies - All Other - 108 - - - 510.55 Operating Equip - Department - - - - - Merchandise Purchases 57,733 51,814 45,000 49,000 50,000 510.73 Golf Cart Rental 35,859 32,797 35,000 35,000 35,000 510.76 Driving Range 2,999 3,011 - - 3,000 238 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.79 Advertising & Promotions 9,598 2,758 - - 5,000 510.82 GPS Expense - - - - - 510.83 Credit Card Fees 26,957 27,471 25,000 25,000 25,000 510.85 State Sales Tax 4,895 5,522 5,130 5,130 5,850 535.01 Building Mnt Internal Svc - - 128,434 113,664 83,037 545.01 Central Garage Internal Svc - - - - - 25 - Operating Expenses 163,028 145,679 284,354 603,082 618,900 Percent Change 2016 vs 2015 Budget 117.65% 30 - Contractual Services 515.05 IRMA Premium 10,000 266 266 266 266 515.10 Unemployment Insurance - 25,000 25,000 25,000 15,000 515.15 IRMA Deductible - Worker's Comp - - 57 57 57 515.20 IRMA Deductible - Non Wrker's Co - 1,556 38 38 38 30 - Contractual Services 10,000 26,822 25,361 25,361 15,361 Percent Change 2016 vs 2015 Budget -39.43% 40 - Repairs and Maintenance 535.20 Buildings & Facilities 22,257 20,325 - - - 535.35 Golf Course 39,695 29,546 - 4,200 4,000 535.40 Irrigation System 9,356 8,515 - 1,077 5,000 545 Maintenance & Repairs - Vehicles - - - - - 545.05 Gasoline 28,014 26,624 25,000 6,500 8,000 545.10 Diesel Fuel 787 569 1,000 - - 545.15 Automotive Parts 153 535 1,000 - - 545.20 Garage Labor 1,074 754 - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 22,494 14,407 20,000 3,158 - 40 - Repairs and Maintenance 127,845 101,275 47,000 14,935 17,000 Percent Change 2016 vs 2015 Budget -63.83% 45 - Commodities 530.05 Electricity - Facilities 51,072 65,115 55,000 55,000 55,000 530.20 Gas - Facilities 8,347 13,398 9,000 9,000 9,000 530.45 Chemicals and Fertilizers 64,989 62,995 65,000 2,000 - 530.50 Small Equipment Tools & Hardware 1,095 401 1,000 - 45 - Commodities 125,503 141,908 130,000 66,000 64,000 Percent Change 2016 vs 2015 Budget -50.77% 239 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 50 - Other Expenses 580.05 All Other Expenses 1,028 998 - 1,000 1,000 800 Depreciation 32,784 32,784 - - - 50 - Other Expenses 33,812 33,782 - 1,000 1,000 Percent Change 2016 vs 2015 Budget 0.00% 55 - Capital Outlay 555.10 Office and Other Equipment - - 500 500 - 555.30 Reserve for Capital Replacement - 30,000 30,000 30,000 - 555.40 Reserve for Technology - 1,000 1,000 1,000 1,000 555.50 Reserve for Buildings - 10,000 10,000 10,000 10,000 555.60 Reserve for Infrastructure - - - - 59,600 560 Capital Projects - - - - - 560.30 Buildings & Structures - - 2,000 2,000 2,000 560.80 Golf Course 19,449 4,591 20,000 20,000 16,000 55 - Capital Outlay 19,449 45,591 63,500 63,500 88,600 Percent Change 2016 vs 2015 Budget 39.53% 65 - Other Financing Uses 570.10 Operating Transfers Corporate Fund - - - - - 570.60 Operating Transfers Arboretum Golf Course Fund - - - - - 65 - Other Financing Uses - - - - - Percent Change 2016 vs 2015 Budget 0.00% Department Total: 84 - Golf 1,119,627 1,168,803 1,264,596 1,215,978 1,242,963 Percent Change 2016 vs 2015 Budget -1.71% Expenditures Total 1,119,627 1,168,803 1,264,596 1,215,978 1,242,963 Percent Change 2016 vs 2015 Budget -1.71% 240 Budget Summary Arboretum Golf Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 471,963 263,400 170,600 Personal Benefits 135,161 53,934 55,013 Operating Expenses 165,338 384,482 1,034,413 Contractual Services 35,589 19,109 8,360 Repairs & Maintenance 99,431 3,334 5,000 Capital Outlay 84,679 635,000 75,500 Commodities 150,018 70,000 65,000 All Other Expenses 489,653 - 1,000 Total 1,631,832 1,429,259 1,414,886 Budget Variance Arboretum Golf Fund Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 500.05 Full Time (78.15%) (178,878) Outsourced maintenance 500.10 Part Time (81.09%) (128,628) Outsourced maintenance 500.35 Overtime (100.00%) (13,500) Outsourced maintenance 500.40 Longevity (76.92%) (2,000) Outsourced maintenance 505.05 Group & Medical Life (67.57%) (43,750) Outsourced maintenance 505.10 Professional Training (100.00%) (1,000) Outsourced maintenance 505.15 Dues & Memberships (20.00%) (400) Outsourced maintenance 505.25 Uniform Maintenance (100.00%) (3,000) Outsourced maintenance 505.35 Safety Equipment (100.00%) (500) Outsourced maintenance 505.75 Employer's Contribution - FICA (47.57%) (14,322) Outsourced maintenance 505.80 Employer's Contribution – IMRF (74.95%) (38,705) Outsourced maintenance 505.85 Employer's Contribution Medicare (47.57%) (3,349) Outsourced maintenance 510.02 Telephone (100.00%) (5,000) Reduction of lines 510.04 Travel (100.00%) (250) Outsourced maintenance 510.20 Computer Services (100.00%) (6,000) Reduction of s ervices 510.21 IT Internal Svc Contribution (72.80%) (17,901) Recalibrated cost basis 510.70 Merchandise Purchases 12.50% 5,000 Increase of s pecial orders 510.79 Advertising & Promotions (33.33%) (5,000) Reduction based on historical trends 535.01 Building Mnt Internal Svc Cntrb (15.93%) (36,961) Recalibrated cost basis 515.10 Unemployment Insurance (68.00%) (17,000) Outsourced maintenance 545.05 Gasoline (100.00%) (20,000) Outsourced maintenance 241 550.05 Department Equipment (100.00%) (14,000) Outsourced maintenance 530.20 Gas - Facilities (21.05%) (4,000) Outsourced maintenance 530.45 Chemicals and Fertilizers (100.00%) (90,000) Outsourced maintenance 530.50 Small Equipment Tools & Hardware (100.00%) (1,500) Outsourced maintenance 580.05 All Other Expenses 100.00% 500 Outsourced maintenance 555.30 Reserve for Capital Replacement (100.00%) (20,000) Reclassed to i nfrastructure 560.30 Buildings & Structures (100.00%) (1,000) Reclassed to Building and Maintenance Fund 510.10 Maintenance Contracts New 672,000 Outsourced maintenance 535.40 Irrigation System New 5,000 Facility i mprovements 555.60 Reserve for Infrastructure New 45,400 Reclassed from Building Maint and Golf Funds 1,631,832 1,429,259 1,414,886 Total Arboretum Golf FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 242 Revenues Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 190 - Arboretum Golf Fund 40 - Charges for Services 445.10 Greens Fees 765,423 744,329 765,000 760,000 770,000 445.15 Power Cart Rental 195,432 182,744 190,000 187,000 190,000 445.20 Pull Cart Rental 875 848 800 800 900 445.30 Memberships & Passes 37,800 51,670 48,000 52,000 49,000 445.35 Merchandise Sales 50,300 51,546 50,000 51,000 51,000 445.36 Coupon Sales 35,825 29,221 30,000 23,860 27,000 445.40 Sales Tax 4,091 4,125 4,000 4,080 4,080 445.50 GPS Income - - - - - 445.55 Club Rental Fees 2,621 3,160 3,000 3,000 3,000 445.56 Locker Room Rental 224 105 100 115 200 445.60 Rental Income Facility 64,904 60,468 55,000 55,000 55,000 445.70 Utility Reimbursement 16,553 30,957 25,000 25,000 25,000 445.90 Other Revenue 4,320 5,043 3,000 62,000 94,000 40 - Charges for Services 1,178,368 1,164,216 1,173,900 1,223,855 1,269,180 Percent Change 2016 vs 2015 Budget 8.12% 45 - Interest Income 450.05 Savings - - - - - 450.10 Investment Pool 11 - - - - 45 - Interest Income 11 - - - - Percent Change 2016 vs 2015 Budget 0.00% 50 - Miscellaneous Revenue 465.65 Grants - 17,630 - - - 50 - Miscellaneous Revenue - 17,630 - - - Percent Change 2016 vs 2015 Budget 0.00% 55 - Operating Transfers 460.05 Operating Transfers Interfund Transfers In 58,960 - 187,150 205,404 155,020 55 - Operating Transfers 58,960 - 187,150 205,404 155,020 Percent Change 2016 vs 2015 Budget -17.17% Revenues Total 1,237,339 1,181,845 1,361,050 1,429,259 1,424,200 Percent Change 2016 vs 2015 Budget 4.64% 243 Expenses Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Department: 84 - Golf 10 - Salaries 500.05 Full Time 322,813 225,454 228,878 150,000 50,000 500.10 Part Time 106,812 142,188 158,628 24,000 30,000 500.15 Seasonal 88,305 84,682 98,100 88,000 90,000 500.35 Overtime 19,252 18,039 13,500 - - 500.40 Longevity 3,300 1,600 2,600 1,400 600 10 - Salaries 540,482 471,963 501,706 263,400 170,600 Percent Change 2016 vs 2015 Budget -66.00% 15 - Taxes and Benefits 505.05 Group & Medical Life 48,314 42,639 64,750 10,560 21,000 505.10 Professional Training 2,705 2,552 1,000 - - 505.15 Dues & Memberships 1,691 2,098 2,000 1,774 1,600 505.25 Uniform Maintenance 1,081 1,424 3,000 - - 505.26 Uniform Rental 602 - - - - 505.35 Safety Equipment 534 323 500 100 - 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 29,218 30,106 16,000 15,784 505.80 Employer's Contribution - IMRF 100,205 50,075 51,643 22,000 12,938 505.85 Employer's Contribution Medicare - 6,833 7,040 3,500 3,691 15 - Taxes and Benefits 155,131 135,161 160,039 53,934 55,013 Percent Change 2016 vs 2015 Budget -65.63% 25 - Operating Expenses 510.02 Telephone 6,937 6,465 5,000 1,000 - 510.03 Postage - - - - - 510.04 Travel 320 238 250 - - 510.10 Maintenance Contracts - - - - 672,000 510.16 Printing 646 639 700 600 700 510.20 Computer Services 5,016 2,907 6,000 1,212 - 510.21 IT Internal Svc Contribution - - 24,589 20,710 6,688 510.28 Audit Fees - - 1,500 - 1,500 510.40 Supplies - Office 4,147 5,056 5,000 5,186 5,000 510.49 Supplies - Golf Course 12,945 9,870 13,500 10,500 13,500 510.55 Operating Equip - Department - - - - - 510.70 Merchandise Purchases 45,137 39,668 40,000 44,000 45,000 510.73 Golf Cart Rental 63,402 57,638 54,520 58,000 55,000 510.79 Advertising & Promotions 17,157 12,127 15,000 16,000 10,000 510.82 GPS Expense - - - - - 244 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.83 Credit Card Fees 25,754 26,681 25,800 26,000 26,000 510.85 State Sales Tax 3,536 4,049 4,000 4,000 4,000 535.01 Building Mnt Internal Svc Cntrb - - 231,986 197,274 195,025 545.01 Central Garage Internal Svc - - - - - 25 - Operating Expenses 184,996 165,338 427,845 384,482 1,034,413 Percent Change 2016 vs 2015 Budget 141.77% 30 - Contractual Services 515.05 IRMA Premium 10,000 265 265 265 265 515.10 Unemployment Insurance - 25,000 25,000 18,749 8,000 515.15 IRMA Deductible - Worker's Comp - 10,324 57 57 57 515.20 IRMA Deductible - Non Wrker's Co - - 38 38 38 30 - Contractual Services 10,000 35,589 25,360 19,109 8,360 Percent Change 2016 vs 2015 Budget -67.03% 40 - Repairs and Maintenance 535.20 Buildings & Facilities 27,107 40,696 - - - 535.35 Golf Course 23,200 21,902 - 2,239 - 535.40 Irrigation System 11,583 7,121 - - 5,000 545 Maintenance & Repairs - Vehicles - - - - - 545.05 Gasoline 17,097 19,239 20,000 1,095 - 545.10 Diesel Fuel - - - - - 545.15 Automotive Parts - - - - - 545.20 Garage Labor - - - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services - - - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 11,597 10,473 14,000 - - 40 - Repairs and Maintenance 90,584 99,431 34,000 3,334 5,000 Percent Change 2016 vs 2015 Budget -85.29% 45 - Commodities 530.05 Electricity - Facilities 53,150 53,219 50,000 50,000 50,000 530.20 Gas - Facilities 21,993 4,663 19,000 15,000 15,000 530.45 Chemicals and Fertilizers 89,978 90,847 90,000 5,000 - 530.50 Small Equipment Tools & Hardware 1,322 1,289 1,500 - - 45 - Commodities 166,443 150,018 160,500 70,000 65,000 Percent Change 2016 vs 2015 Budget -59.50% 245 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 50 - Other Expenses 580.05 All Other Expenses 1,131 997 500 - 1,000 800 Depreciation 488,656 488,656 - - - 50 - Other Expenses 489,787 489,653 500 - 1,000 Percent Change 2016 vs 2015 Budget 100.00% 55 - Capital Outlay 555.10 Office and Other Equipment 183 22,081 100 - 100 555.30 Reserve for Capital Replacement - 30,000 20,000 20,000 - 555.50 Reserve for Buildings - 13,940 10,000 10,000 10,000 555.60 Reserve for Infrastructure - - - - 45,400 560 Capital Projects - - - - - 560.30 Buildings & Structures - 1,250 1,000 - - 560.80 Golf Course 49,315 17,408 20,000 605,000 20,000 55 - Capital Outlay 49,498 84,679 51,100 635,000 75,500 Percent Change 2016 vs 2015 Budget 47.75% Department Total: 84 - Golf 1,686,923 1,631,832 1,361,050 1,429,259 1,414,886 Percent Change 2016 vs 2015 Budget 3.96% Expenditures Total 1,686,923 1,631,832 1,361,050 1,429,259 1,414,886 Percent Change 2016 vs 2015 Budget 3.96% 246 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 201 6, the proposed revenue budget for the Village's Water and Sewer Fund totals $13,834,475 compared to $16,474,253 for FY 2015 . This is a decrease of $2,639 ,778 or 16.02 percent. The drop in revenue is caused by the water meter replacement program. The budget spike is due to the water meter replacement program, which will continue in 2016. Water usage is projected to be low from a historical standpoint, but in line with the current trend of actual usage in 2014 and 2015. 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 2016 adjusts to $5.6 9/1,000 gallons. The Water rate is $4.56 and Sewer is $1.13. The combined rate will continue to increase 4 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 2016 . 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 c ooler 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 Co unty 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 . 247 2016 Personnel Summary‐ Water/Sewer   Water/Sewer FY 2014 FY 2015 FY 2016    FT PT FT PT FT PT  Maintenance Worker I 4 0 4 0 2 0  Maintenance Worker II 3 0 4 0 6 0  Maintenance Worker II‐ CL 1 0 0 0 0 0  Maintenance Worker III 1 0 0 0 0 0  Water Section Manager 0 0 1 0 1 0  Sewer and Drainage Manager 0 0 1 0 1 0  Utility Superintendent 1 0 1 0 1 0  Water Customer Worker II 1 0 0 0 0 0  Water Customer MWII‐CL 1 0 1 0 0 0  Total 12 0 12 0 11 0      Budget Summary  Water  FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Services 604,602 499,000 641,036  Personal Benefits 254,787 354,116 330,853  Operating Expenses 1,756,340 2,177,842 2,223,324  Contractual Services 71,769 71,968 65,506  Repairs & Maintenance 130,660 60,200 117,500  Capital Equipment 292,303 4,362,499 4,312,500  Commodities 234,938 234,960 266,200  All Other Expenses 1,083,180 ‐  ‐  Debt 10,592 19,433 354,183  Other Financing Uses  965,000 945,000 945,000  Total 5,404,171 8,725,018 9,256,102    Budget Variance  Water  Line Item  Number Account Description Percent  Change  Dollar Amount  Change Description of Change  500.40 Longevity 11.23% 404 Employee milestone  505.10 Professional Training 20.00% 700 Increase need for training  505.75 Employer's Contribution ‐  FICA (17.20%) (7,511) Correct prior year miscalculation  505.85 Employer's Contribution  Medicare (71.11%) (22,542) Correct prior year miscalculation  510.21 IT Internal Svc  Contribution 13.86% 5,798 Recalibrate cost basis  510.40 Supplies ‐ Office 11.11% 50 Additional supplies  535.01 Building Mnt Internal Svc (24.19%) (68,673) Recalibrate cost basis  545.01 Central Garage Internal  Svc (12.76%) (18,080) Recalibrate cost basis  540.10 Pumping Stations 100.00% 5,000 Additional repairs needed  530.65 Water Meter Purchases (100.00%) (43,000) Remainder of meter purchase for  replacement program  535.05 Sidewalks, Curbs, &  Bikeways New 25,000 Reclassed from Building Maintenance  Fund  560.60 Water System (51.76%) (4,560,000) Prior year expenditure for water meter  program  565.20 Interest 4519.47% 271,620 Interest for water meter payment due in  2016  555.10 Office and Other  Equipment New 800 Based on trend  565.10 Principal New 76,553 Principal for water meter project  payment due in 2016     5,404,171 8,725,018 9,256,102 Total Water FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 250 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 170 - Water & Sewer Fund Revenues 30 - Permits 435.75 Water Connection Fees 7,476 1,650 1,500 5,000 1,500 435.76 Lake County Sewer Tap On Fees 20,450 30,600 25,000 105,405 50,000 435.77 Village Sewer Tap On Fees 450 450 250 4,500 1,000 435.78 Water Meter Sales 6,128 4,786 4,000 8,000 2,500 435.79 System Improvement Fees 9,126 6,800 5,000 15,000 5,000 435.80 Sewer T.V. Inspection Fees - - - - - Recapture Fees 630 - - - - 30 - Permits 44,260 44,286 35,750 137,905 60,000 Percent Change 2016 vs 2015 Budget 67.83% 40 - Charges for Services 441.05 Resident - Regular 4,229,973 4,727,943 5,627,523 5,425,776 5,805,580 441.15 Debt Service Charge 125,677 (4) - - - 441.20 Penalties 102,516 102,353 95,000 100,000 100,000 441.30 Construction Water - 118 500 - 250 441.60 Fees - Turn On 500 1,271 1,500 1,000 1,000 441.65 Fees - Water Use Non - Resident - - - - - 442 Village Sewer 442.05 Resident - Regular 1,007,343 1,179,056 1,293,730 1,350,598 1,458,645 442.10 Penalties - - - - - 443.00 Lake County Sewer Sanitary Sewer Service Fees 3,182,543 3,021,238 3,410,000 3,320,972 3,400,000 40 - Charges for Services 8,648,553 9,031,975 10,428,253 10,198,346 10,765,475 Percent Change 2016 vs 2015 Budget 3.23% 45 - Interest Income 450.05 Savings 622 3,014 250 500 500 450.10 Investment Pool - - - - - 450.15 Money Market (786) 9 - - - 450.20 CD's 5,838 4,543 6,000 5,000 5,000 450.25 Securities 6,769 11,462 4,000 3,500 3,500 45 - Interest Income 12,442 19,028 10,250 9,000 9,000 Percent Change 2016 vs 2015 Budget -12.20% 251 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 50 - Miscellaneous Revenue 465.65 Grants 173,618 154,818 - - - 465.90 Miscellaneous Income 6,991 596,189 6,000,000 3,000,000 3,000,000 50 - Miscellaneous Revenue 180,609 751,007 6,000,000 3,000,000 3,000,000 Percent Change 2016 vs 2015 Budget -50.00% 55 - Operating Transfers 460.05 Interfund Transfers In - - - - - 55 - Operating Transfers - - - - - Percent Change 2016 vs 2015 Budget 0.00% Revenues Total 8,885,865 9,846,296 16,474,253 13,345,251 13,834,4755 Percent Change 2016 vs 2015 Budget -16.02% 252 Expense Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Department: 55 - Public Works Division: 35 - Water 10 - Salaries 500.05 Full Time 581,335 518,232 640,604 440,000 576,725 500.10 Part Time 81 753 - - - 500.35 Overtime 54,604 82,117 60,311 55,000 60,311 500.40 Longevity 4,367 3,500 3,596 4,000 4,000 10 - Salaries 640,387 604,602 704,511 499,000 641,036 Percent Change 2016 vs 2015 Budget -9.01% 15 - Taxes and Benefits 505.05 Group & Medical Life 127,487 112,581 165,431 165,431 181,000 505.10 Professional Training 1,594 1,604 3,500 4,200 4,200 505.15 Dues & Memberships 302 221 894 894 900 505.20 Clothing Allowance 986 1,239 2,100 2,100 2,100 505.25 Uniform Maintenance 2,326 795 - - - 505.26 Uniform Rental - 2,179 2,705 2,705 2,700 505.35 Safety Equipment 2,850 6,795 6,900 6,000 7,000 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 36,110 43,680 43,680 36,169 505.80 Employer's Contribution - IMRF 137,879 79,536 94,404 97,404 87,624 505.85 Employer's Contribution Medicare - 8,445 31,702 31,702 9,160 15 - Taxes and Benefits 273,424 254,787 351,316 354,116 330,853 Percent Change 2016 vs 2015 Budget -5.82% 25 - Operating Expenses 510 Operating Expenses - 47 - - - 510.02 Telephone 7,357 4,572 6,500 6,000 6,500 510.04 Travel - - - - - 510.10 Maintenance Contracts 59,389 60,230 114,000 114,000 114,000 510.12 Equipment Rental - - 1,018 900 1,018 510.14 Subscriptions & Publications - 240 - - - 510.16 Printing - - 4,000 3,200 4,000 510.21 IT Internal Svc Contribution - - 41,843 35,243 47,641 510.40 Supplies - Office 266 931 450 460 500 510.50 Supplies - All Other 644 908 2,800 2,000 2,800 510.55 Operating Equip - Department 2,083 336 6,000 6,000 6,000 253 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.83 Credit Card Fees 532 1,064 2,000 2,000 2,000 510.84 Bank Fees 23,945 19,773 - - - 510.90 Northwest Water Commission 1,300,123 1,668,240 1,800,000 1,669,000 1,700,000 535.01 Building Mnt Internal Svc - - 283,898 247,520 215,225 545.01 Central Garage Internal Svc - - 141,720 91,519 123,640 25 - Operating Expenses 1,394,341 1,756,340 2,404,229 2,177,842 2,223,324 Percent Change 2016 vs 2015 Budget 0.00% 30 - Contractual Services 515.05 IRMA Premium 129,942 46,868 46,868 46,868 46,868 515.10 Unemployment Insurance - 1,600 1,600 1,600 1,600 515.15 IRMA Deductible - Worker's Comp - 14,512 10,043 21,000 10,043 515.20 IRMA Deductible - Non Wrker's Co - 8,789 6,995 2,500 6,995 30 - Contractual Services 129,942 71,769 65,506 71,968 65,506 Percent Change 2016 vs 2015 Budget 0.00% 40 - Repairs and Maintenance 535.05 Sidewalks, Curbs, & Bikeways - - - - 25,000 535.20 Buildings & Facilities - 4,455 - - - 540 Maintenance & Repairs - Water & Sewer - - - - - 540.05 Well Equipment 4,907 615 10,000 9,000 10,000 540.10 Pumping Stations 19,161 11,738 5,000 4,800 10,000 540.15 Watermains & Services 12,546 15,720 16,000 13,000 16,000 540.20 Reservoirs 91 225 5,000 4,000 5,000 540.25 Water Meters 1,598 5,666 14,000 8,000 15,000 540.30 Hydrants & Valves 14,255 31,881 20,000 9,000 20,000 545 Maintenance & Repairs - Vehicles - 720 - - - 545.05 Gasoline 9,035 6,632 - - - 545.10 Diesel Fuel 16,906 10,756 - - - 545.15 Automotive Parts 7,371 6,162 - - - 545.20 Garage Labor 24,166 13,914 - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services 7,929 21,576 - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 325 32 16,000 12,000 16,000 550.10 Radios - 570 500 400 500 254 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 40 - Repairs and Maintenance 118,290 130,660 86,500 60,200 117,500 Percent Change 2016 vs 2015 Budget 0.00% 45 - Commodities 530.15 Electricity - Water & Sewer 223,231 188,049 230,000 200,000 230,000 530.20 Gas - Facilities 690 2,901 4,400 3,500 4,400 530.30 Gas - Water & Sewer 500 - - - - 530.45 Chemicals and Fertilizers 2,331 1,487 5,220 4,800 5,200 530.50 Small Equipment Tools & Hardware 953 1,503 1,600 1,300 1,600 530.60 Water Sample Analysis 15,100 15,400 25,360 25,360 25,000 530.65 Water Meter Purchases 19,439 25,597 43,000 - - 45 - Commodities 262,243 234,938 309,580 234,960 266,200 Percent Change 2016 vs 2015 Budget -14.01% 50 - Other Expenses 580.05 All Other Expenses 222 - - - - 580.66 IRMA Deductible - Non Wrkr's Cmp - - - - - 800 Depreciation 1,083,042 1,083,180 - - - 50 - Other Expenses 1,083,264 1,083,180 - - - Percent Change 2016 vs 2015 Budget -51.4% 55 - Capital Outlay 555.10 Office and Other Equipment - - - 786 800 555.30 Reserve for Capital Replacement 54,255 54,255 54,255 54,000 54,000 555.40 Reserve for Technology 182 2,088 1,500 1,500 1,500 555.50 Reserve for Buildings - 6,265 6,265 6,213 6,200 560 Capital Projects - - - - - 560.60 Water System 49,279 229,695 8,810,000 4,300,000 4,250,000 55 - Capital Outlay 103,716 292,303 8,872,020 4,362,499 4,312,500 Percent Change 2016 vs 2015 Budget 0.00% 60 - Debt Service 565.10 Principal - 6,788 - 12,596 76,553 565.20 Interest - 3,804 6,010 6,837 277,630 565.60 Northwest Water Service 352,822 - - - - 60 - Debt Service 352,822 10,592 19,433 354,183 Percent Change 2016 vs 2015 Budget 5793.23% 255 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 65 - Other Financing Uses 570.10 Operating Transfers Corporate Fund 765,000 765,000 765,000 765,000 765,000 570.20 Operating Transfers Debt Service Fund 180,000 200,000 180,000 180,000 180,000 65 - Other Financing Uses 945,000 965,000 945,000 945,000 945,000 Percent Change 2016 vs 2015 Budget 0.00% Division Total: 35 - Water 5,303,429 5,404,171 13,744,672 8,725,018 9,256,102 Percent Change 2016 vs 2015 Budget 0.00% 256 Budget Summary Sewer FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 314,397 323,200 335,790 Personal Benefits 125,854 183,208 190,499 Operating Expenses 40,202 233,615 291,119 Contractual Services 32,801 35,192 41,693 Repairs & Maintenance 27,750 25,700 35,900 Capital Equipment 114,984 892,024 1,266,644 Commodities 3,100,679 3,480,377 3,496,500 All Other Expenses 70 - - Total 3,756,737 5,173,316 5,658,145 Budget Variance Sewer Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 505.15 Dues & Memberships 100.00% 100 Additional membership 510.40 Supplies - Office 11.11% 50 Additional supplies 535.01 Building Mnt Internal Svc Cntrb 13.94% 17,947 Recalibrated cost basis 545.01 Central Garage Internal Svc -34.68% (27,023) Recalibrated cost basis 535.05 Sidewalks, Curbs, & Bikeways New 10,000 Reclassed from Building Maintenance 540.35 Storm and Sanitary Sewers 37.50% 1,500 Based on historical trend 530.70 Lake County Tap -On Fees 25.00% 10,000 Based on historical trend 555.10 Office and Other Equipment New 700 Additional equipment request 560.70 Sewer System 43.44% 374,000 Additional repairs to s ewer s ystem needed 257 3,756,737 5,173,316 5,658,145 Total Sewer FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 258 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Division: 36 - Sewer 10 - Salaries 500.05 Full Time 287,912 296,793 335,007 306,000 317,590 500.35 Overtime 15,235 15,964 14,112 14,100 15,000 500.40 Longevity 68,370 1,640 2,947 3,100 3,200 10 - Salaries 371,517 314,397 352,066 323,200 335,790 Percent Change 2016 vs 2015 Budget -4.62% 15 - Taxes and Benefits 505 Personal Benefits - 2,718 - - - 505.05 Group & Medical Life 55,520 53,444 98,494 98,490 107,500 505.10 Professional Training - 775 1,600 1,600 1,600 505.15 Dues & Memberships 60 30 100 200 200 505.20 Clothing Allowance 440 279 701 701 700 505.25 Uniform Maintenance 1,386 174 - - - 505.26 Uniform Rental - 699 1,135 1,135 1,200 505.35 Safety Equipment 3,745 2,258 7,780 7,000 7,800 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 18,937 21,828 21,800 20,599 505.80 Employer's Contribution - IMRF 679 42,111 47,177 47,177 46,082 505.85 Employer's Contribution Medicare - 4,429 5,105 5,105 4,818 15 - Taxes and Benefits 61,830 125,854 183,920 183,208 190,499 Percent Change 2016 vs 2015 Budget 3.58% 25 - Operating Expenses 510.02 Telephone 23,301 15,207 15,000 15,000 15,000 510.04 Travel - - - - - 510.10 Maintenance Contracts 16,767 12,238 48,112 38,000 49,000 510.12 Equipment Rental - - 200 200 200 510.14 Subscriptions & Publications - - 75 75 75 510.21 IT Internal Svc Contribution - - 18,577 15,647 17,738 510.40 Supplies - Office 199 132 450 400 500 510.50 Supplies - All Other 2,570 1,163 3,500 3,000 3,500 510.55 Operating Equip - Department 1,164 11,462 7,500 7,000 7,500 535.01 Building Mnt Internal Svc Cntrb - - 128,770 103,979 146,717 545.01 Central Garage Internal Svc - - 77,912 50,314 50,889 25 - Operating Expenses 44,001 40,202 233,615 291,119 Percent Change 2016 vs 2015 Budget -2.99% 259 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 30 - Contractual Services 515 Insurance - - - - - 515.05 IRMA Premium 41,648 30,093 30,093 30,093 30,093 515.10 Unemployment Insurance - 800 800 800 800 515.15 IRMA Deductible - Worker's Comp - (2,120) 6,449 - 6,500 515.20 IRMA Deductible - Non Wrker's Co - 4,028 4,299 4,299 4,300 30 - Contractual Services 41,648 32,801 41,641 35,192 41,693 Percent Change 2016 vs 2015 Budget 0.12% 40 - Repairs and Maintenance 535.05 Sidewalks, Curbs, & Bikeways - - - - 10,000 540 Maintenance & Repairs - Water & Sewer - - - - - 540.35 Storm and Sanitary Sewers 2,544 5,056 4,000 5,300 5,500 540.40 Lift Stations 14,430 5,256 14,200 14,200 14,000 545 Maintenance & Repairs - Vehicles - - - - - 545.05 Gasoline 2,793 2,015 - - - 545.10 Diesel Fuel 9,208 5,462 - - - 545.15 Automotive Parts 2,754 2,822 - - - 545.20 Garage Labor 7,464 7,039 - - - 545.25 Lubricants - - - - - 545.30 Garage Overhead - - - - - 545.35 Body Work - - - - - 545.40 Contractual Auto Services 3,600 99 - - - 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 3,153 - 6,200 6,000 6,200 550.10 Radios - - 200 200 200 40 - Repairs and Maintenance 45,945 27,750 24,600 25,700 35,900 Percent Change 2016 vs 2015 Budget 45.93% 45 - Commodities 530.15 Electricity - Water & Sewer - 36,219 45,000 40,000 45,000 530.50 Small Equipment Tools & Hardware 707 476 1,500 14,000 1,500 530.70 Lake County Tap -On Fees 20,400 30,600 40,000 105,405 50,000 530.75 Lake County Sanitary Sewer Fees 3,180,992 3,033,384 3,410,000 3,320,972 3,400,000 45 - Commodities 3,202,099 3,100,679 3,496,500 3,480,377 3,496,500 Percent Change 2016 vs 2015 Budget 0.00% 260   Description 2013  Actual  2014  Actual  2015  Budget  2015 Est  Actual  2016  Budget  50 ‐ Other Expenses  580.05 All Other Expenses 82 70 ‐ ‐ ‐  50 ‐ Other Expenses 82 70 ‐ ‐ ‐  Percent Change 2016 vs 2015 Budget    55 ‐ Capital Outlay  555.10 Office and Other Equipment  ‐ ‐ ‐ ‐ 700   555.30 Reserve for Capital  Replacement 26,044 26,044 26,044 26,044 26,044  555.40 Reserve for Technology 1,009 1,350 1,400 1,400 1,400  555.50 Reserve for Buildings ‐ 3,580 3,580 3,580 3,500  560 Capital Projects ‐ ‐ ‐ ‐ ‐  560.70 Sewer System 976 84,010 861,000 861,000 1,235,000  55 ‐ Capital Outlay 28,029 114,984 892,024 892,024 1,266,644  Percent Change 2016 vs 2015 Budget 42.00%  60 ‐ Debt Service  565.10 Principal ‐ ‐ ‐ ‐ ‐  565.20 Interest ‐ ‐ ‐ ‐ ‐  60 ‐ Debt Service ‐ ‐ ‐ ‐ ‐  Percent Change 2016 vs 2015 Budget 0.00%  Division Total: 36 ‐ Sewer 3,795,151 3,756,737 5,290,847 5,173,316 5,658,145  Percent Change 2016 vs 2015 Budget 6.94%  Department Total: 55 ‐ Public Works 9,098,579 9,160,908 19,035,519 13,898,334 14,914,247  Percent Change 2016 vs 2015 Budget ‐21.65%  Expenditures Total 9,098,579 9,160,908 19,035,519 13,898,334 14,914,247  Percent Change 2016 vs 2015 Budget ‐21.65%      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 2015-2016 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 ra tes are fixed during the duration of the contract. The effective rates are noted below. Single Family Monthly Rate Multi Family Monthly Rate Solid Waste Collection with Cart $7.61 $7.54 Recycling Collection with Cart $3.20 1.85* Landscape Collection without Cart $3.00 - Additional weekly service $4.25* NA Tipping Fee $5.65 $4.50 Total - 1 Collection per Week $19.46 $12.04 Total - 2 Collections per Week $23.71* 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 FY 2014 Actual FY 2015 Est Actual FY 2016 Budget All Other Expenses 803,039 867,055 751,740 Other Financing Uses - 75,000 275,000 Total 803,039 942,055 1,026,740 Budget Variance Refuse Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 570.30 Operating Transfers Capital Projects Fund New 200,000 Transfer to support street improvements 262 803,039 942,055 1,026,740 Total Refuse Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 263 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 200 - Refuse Fund 50 - Miscellaneous Revenue 465 All Other Revenue - - - - - 465.55 SWANCC User Fees 1,040,878 1,121,919 1,025,000 1,069,300 1,040,000 50 - Miscellaneous Revenue 1,040,878 1,121,919 1,025,000 1,069,300 1,040,000 Percent Change 2016 vs 2015 Budget 1.46% Revenues Total 1,040,878 1,121,919 1,025,000 1,069,300 1,040,000 Percent Change 2016 vs 2015 Budget 1.46% Expense Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Department: 86 - Refuse 50 - Other Expenses 580.05 All Other Expenses 23,445 - - - - 580.35 SWANCC User Fees 879,365 803,039 890,000 867,055 751,740 50 - Other Expenses 902,810 803,039 890,000 867,055 751,740 Percent Change 2016 vs 2015 Budget -15.53% 65 - Other Financing Uses 570.10 Operating Transfers Corporate Fund - - 75,000 75,000 75,000 570.30 Operating Transfers Capital Projects Fund - - - - 200,000 65 - Other Financing Uses - - 75,000 75,000 275,000 Percent Change 2016 vs 2015 Budget 266.67% Department Total: 86 - Refuse 902,810 803,039 965,000 942,055 1,026,740 Percent Change 2016 vs 2015 Budget 6.40% Expenditures Total 902,810 803,039 965,000 942,055 1,026,740 Percent Change 2016 vs 2015 Budget 6.40% 264 Section 8      Internal Service Funds  Information Technology Fund  Central Garage Fund  Building and Facility Maintenance Fund                              Internal Service Funds Internal Service Funds provide services to other Village departments so they can efficiently provide goods and services to the 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 eac h department based on the direct cost of the good or s ervice and an overhead amount that cover s 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, referred to in the Comprehensive An nual Financial Report (CAFR), in the Statement of Revenues, Expenditures, and Change in Fund Net Assets. Internal service funds allow the Vi llage to better cost the services provided to residents . Building maintenance department costs are redistributed back to other departments based on the square footage of the facilities they occupy. Central Garage costs are based on each department’s historical usage of fuel, parts, and contracted repairs . The percentage used to disburse the 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 . Th e approach provides fully allocated costs for the departments included as internal service funds as they are applicable to other departments in the Village that provide direct services to the residents and community. 267 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. The contract administration is housed within the Office of the Village Manager. The Division is now 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 Commission 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 the IT infrastructure. Information Technology allows all departments to access the n etwork, email, and all other technologies. The IT fund allocations are spread 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 drive down the costs of IT by sharing service providers, making joint purchases, and sharing infrastructure. 268 2016 Staffing Summary  In 2014, the Village opted to join the Government IT Consortium and out‐sourced the IT function.     Information Technology FY 2014 FY 2015 FY 2016    FT PT FT PT FT PT  Director of Information Technology 1 0 0 0 0 0  Information Technology Analyst   1 0 0 0 0 0  Information Technology Assistant  1 0 0 0 0 0  Programmer 0 0 0 0 0 0  Total 3 0 0 0 0 0  Full & Part‐Time Total 3 0 0    Budget Summary  Information Technology  FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Services 218,039 ‐ ‐  Personal Benefits 94,765 ‐  ‐  Operating Expenses 445,905 856,236 1,169,673  Contractual Services 1,016 17,357 17,357  Repairs and Maintenance 691 2,000 5,000  Capital Equipment 119,555 32,219 32,219  All Other Expenses 95 ‐ ‐  Total 880,067 907,812 1,224,249    *The FY 2014 figures represent the Information Technology Fund when it was a department.  In 2015, it was  recognized as an internal service fund.  The increase in fund expenses ($262,778) is primarily a result of expenses  moved from department budgets into the IT Fund.  Examples include the GIS Program (145,000), Performance  Evaluation Software, Agenda Management Software, Administrative Adjudication Software, FOIA Software, and  Applicant Tracking Software.    Budget Variance   Information Technology   Line Item  Number Account Description Percent  Change  Dollar Amount  Change Description of Change  510.02 Telephone 15.37% 13,989 Reclassed from departments  510.10 Maintenance Contracts 47.89% 262,778 Reclassed from various  departments  510.14 Subscriptions &  Publications ‐66.97% (30,420) Reduction of subscriptions  510.20 Computer Services ‐37.51% (142,225) Reduction of services  510.40 Supplies ‐ Office New 1,200 Supplies needed for  maintenance  515.20 IRMA Deductible ‐ Non  Wrker's Co New 17,357 Additional insurance  coverage   880,067 907,812 1,224,249 Total Information Technology FY 2014 Actual FY 2015 Est Actual 270 Revenues     Description 2013  Actual  2014  Actual  2015  Budget  2015 Est  Actual  2016  Budget  Fund:      211 ‐ Information Technology Fund  55 ‐ Operating Transfers  460.05 Interfund Transfers In ‐ ‐ ‐ ‐ ‐   461.01 Internal Service Contributions  Information Technology Fund ‐  ‐ 1,101,570 907,812 1,224,249  55 ‐ Operating Transfers ‐ ‐ 1,101,570 907,812 1,224,249  Percent Change 2016 vs. 2015 Budget 11.14%  Revenues Total ‐ ‐ 1,101,570 907,812 1,224,249  Percent Change 2016 vs. 2015 Budget 11.14%    Expenses    Description 2013  Actual  2014  Actual  2015  Budget  2015 Est  Actual  2016  Budget  Fund:      211 ‐ Information Technology Fund  Department:       92 ‐ Information Technology  10 ‐ Salaries  500.05 Full Time 304,975 216,407 ‐ ‐ ‐  500.10 Part Time 16,097 ‐ ‐ ‐ ‐  500.35 Overtime 615 233 ‐ ‐ ‐  500.40 Longevity 2,200 1,400 ‐ ‐ ‐  10 ‐ Salaries 323,887 218,039 ‐ ‐ ‐  Percent Change 2016 vs. 2015 Budget 0.00%  15 ‐ Taxes and Benefits  505.05 Group & Medical Life 79,008 33,907 ‐ ‐ ‐  505.10 Professional Training 5,276 14,497 ‐ ‐ ‐  505.15 Dues & Memberships 75 ‐ ‐ ‐ ‐  505.45 ICMA Deferred Compensation  ‐ ‐ ‐ ‐ ‐  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 84,359 94,765 ‐ ‐ ‐  Percent Change 2016 vs. 2015 Budget 0.00%  25 ‐ Operating Expenses  510.02 Telephone 19,529 12,772 91,011 91,011 105,000  510.04 Travel 727 176 ‐ ‐ ‐  510.06 Per Diem Allowance 74 220 ‐ ‐ ‐  510.08 Reception & Community Affairs 114 32 ‐ ‐ ‐   Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.10 Maintenance Contracts 42,981 343,294 548,725 548,725 811,503 510.14 Subscriptions & Publications 75 234 45,420 1,500 15,000 510.20 Computer Services 204,389 85,238 379,195 215,000 236,970 510.40 Supplies - Office (11,857) 3,939 - - 1,200 25 - Operating Expenses 256,031 445,905 1,064,351 856,236 1,169,673 Percent Change 2016 vs. 2015 Budget 9.90% 30 - Contractual Services 515.05 IRMA Premium - 1,016 - - - 515.10 Unemployment Insurance 480 - - - - 515.15 IRMA Deductible - Worker's Comp - - - - - 515.20 IRMA Deductible - Non Wrker's Co - - - 17,357 17,357 30 - Contractual Services 480 1,016 - 17,357 17,357 Percent Change 2016 vs. 2015 Budget 0.00% 40 - Repairs and Maintenance 550.05 Department Equipment 190 691 5,000 2,000 5,000 40 - Repairs and Maintenance 190 691 5,000 2,000 5,000 Percent Change 2016 vs. 2015 Budget 0.00% 50 - Other Expenses 580.05 All Other Expenses 156 95 - - - 50 - Other Expenses 156 95 - - - Percent Change 2016 vs. 2015 Budget 0.00% 55 - Capital Outlay 555.10 Office and Other Equipment 649 4,674 - - - 555.40 Reserve for Technology 112,067 112,196 32,219 32,219 32,219 555.50 Reserve for Buildings - 2,685 - - - 55 - Capital Outlay 112,716 119,555 32,219 32,219 32,219 Percent Change 2016 vs. 2015 Budget 0.00% Expenditures Total 777,819 880,067 1,101,570 907,812 1,224,249 Percent Change 2016 vs. 2015 Budget 11.14% 272 Central Garage Fund The department goals for Central Garage Fund are included with s ection 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 2014 FY 2015 FY 2016 FT PT FT PT FT PT Automotive Mechanic II 3 0 3 0 3 0 Automotive Mechanic III 1 0 1 0 1 0 Automotive Shop Assistant 0 1 0 1 0 1 Fleet Manager 1 0 1 0 1 0 Total 5 1 5 1 5 1 273 Budget Summary Garage FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 484,423 549,310 554,287 Personal Benefits 247,453 227,020 243,150 Operating Expenses 14,890 48,912 32,112 Contractual Services 28,032 32,431 32,320 Repairs and Maintenance 709,790 634,852 871,791 Capital Equipment 1,049,310 55,218 55,218 Commodities 1,901 2,500 3,000 All Other Expenses - - - Total 2,535,801 1,550,243 1,791,878 Budget Variances Garage Line item Number Account Description Percent Change Dollar Amount Change Description of Change 510.02 Telephone -25.00% (500) Reduction in phone lines 510.14 Subscriptions & Publications 120.00% 3,000 Web based technical vehicle repair manual 510.21 IT Internal Svc Contribution -100.00% (27,474) Recalibrated cost basis 545.05 Gasoline -11.37% (28,366) Reduction based on historical usage 545.10 Diesel Fuel -20.00% (59,009) Reduction based on historical usage 545.15 Automotive Parts 11.99% 20,800 Increase due to aging fire fleet 545.20 Garage Labor -100.00% (397,968) Chargeback calculated on historical usage 545.25 Lubricants 30.91% 2,007 Increase based on parts 545.30 Garage Overhead -100.00% (191,817) Chargeback calculated on historical usage 545.35 Body Work -100.00% (11,000) Reduction based on historical usage 545.40 Contractual Auto Services 69.90% 85,555 Increase due to aging fire fleet 550.05 Department Equipment -27.27% (1,500) Reduction based on historical usage 550.10 Radios -100.00% (200) Reduction based on historical usage 274 2,535,801.07 1,550,243.00 1,791,878.00 Total PW- Central Garage FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 275 Revenues Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 212 - Central Garage Fund 55 - Operating Transfers 460.05 Interfund Transfers In - - - - - 461.03 Internal Service Contributions Central Garage Fund - - 2,365,390 1,550,243 1,791,878 55 - Operating Transfers - - 2,365,390 1,550,243 1,791,878 Percent Change 2016 vs 2015 Budget -24.25% Revenues Total - - 2,365,390 1,550,243 1,791,878 Percent Change 2016 vs 2015 Budget -24.25% 276 Expenditures Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 212 - Central Garage Fund Department: 93 - Central Garage 10 - Salaries 500.05 Full Time 473,882 462,210 509,601 509,601 524,953 500.10 Part Time 16,462 16,856 17,045 17,045 18,370 500.35 Overtime 9,745 1,057 6,147 18,000 6,300 500.40 Longevity 4,167 4,300 4,664 4,664 4,664 10 - Salaries 504,257 484,423 537,457 549,310 554,287 Percent Change 2016 vs 2015 Budget 3.13% 15 - Taxes and Benefits 505.05 Group & Medical Life 136,144 137,745 106,269 106,269 116,250 505.10 Professional Training - 150 700 700 700 505.15 Dues & Memberships 242 311 200 200 200 505.20 Clothing Allowance 244 758 1,069 1,069 1,069 505.26 Uniform Rental 3,503 3,977 4,898 4,898 4,898 505.35 Safety Equipment 231 - 750 750 750 505.45 ICMA Deferred Compensation - - - - - 505.75 Employer's Contribution - FICA - 28,860 33,322 33,322 34,366 505.80 Employer's Contribution - IMRF - 64,352 72,019 72,019 76,880 505.85 Employer's Contribution Medicare - 6,816 7,793 7,793 8,037 15 - Taxes and Benefits 140,364 247,453 227,020 227,020 243,150 Percent Change 2016 vs 2015 Budget 7.11% 25 - Operating Expenses 510.02 Telephone 1,574 1,002 2,000 800 1,500 510.04 Travel - - - - - 510.10 Maintenance Contracts - - 3,500 3,500 3,500 510.12 Equipment Rental - - 300 - 300 510.14 Subscriptions & Publications 1,595 2,660 2,500 2,500 5,500 510.21 tribution - - 27,474 23,140 - 510.40 Supplies - Office 165 - 472 472 472 510.50 Supplies - All Other 2,524 4,434 5,000 5,000 5,000 510.55 Operating Equip - Department 389 6,794 15,840 13,500 15,840 25 - Operating Expenses 6,246 14,890 57,086 48,912 32,112 Percent Change 2016 vs 2015 Budget -43.75% 277 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 30 - Contractual Services 515.05 IRMA 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 IRMA Deductible - Worker's Comp - 3,954 4,945 5,056 4,945 515.20 IRMA Deductible - Non Wrker's Co - - 3,297 3,297 3,297 30 - Contractual Services 1,000 28,032 32,320 32,431 32,320 Percent Change 2016 vs 2015 Budget 0.00% 40 - Repairs and Maintenance 545.05 Gasoline 220,504 206,183 249,424 147,602 221,058 545.10 Diesel Fuel 188,240 198,449 295,037 117,559 236,028 545.15 Automotive Parts 162,193 159,099 173,450 176,831 194,250 545.20 Garage Labor - - 397,968 - - 545.25 Lubricants 8,053 5,250 6,493 8,500 8,500 545.30 Garage Overhead - - 191,817 - - 545.35 Body Work - - 11,000 - - 545.40 Contractual Auto Services 92,057 137,757 122,400 181,860 207,955 550 Maintenance & Repairs - Other - - - - - 550.05 Department Equipment 3,113 3,051 5,500 2,500 4,000 550.10 Radios - - 200 - - 40 - Repairs and Maintenance 674,160 709,790 1,453,289 634,852 871,791 Percent Change 2016 vs 2015 Budget -40.01% 45 - Commodities 530.50 Small Equipment Tools & Hardware 791 1,902 3,000 2,500 3,000 45 - Commodities 791 1,902 3,000 2,500 3,000 Percent Change 2016 vs 2015 Budget 0.00% 50 - Other Expenses 580.05 All Other Expenses - - - - - 50 - Other Expenses - - - - - Percent Change 2016 vs 2015 Budget 0.00% 55 - Capital Outlay 555 Capital Equipment 14,482 - - - - 555.10 Office and Other Equipment - - 1,400 1,400 1,400 555.20 Automobiles & Trucks 175,228 1,023,425 18,743 18,743 18,743 278 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 555.30 Reserve for Capital Replacement (2,573) 20,511 30,000 30,000 30,000 555.40 Reserve for Technology - 900 600 600 600 555.50 Reserve for Buildings - 4,475 4,475 4,475 4,475 55 - Capital Outlay 187,137 1,049,311 55,218 55,218 55,218 Percent Change 2016 vs 2015 Budget 0.00% Expenditures Total 1,513,956 2,535,801 2,365,390 1,550,243 1,791,878 Percent Change 2016 vs 2015 Budget -24.25% 279 Building Maintenance Fund The department goals for the Building Maintenance Department are included with the Public Works Department in Section 5 Co rporate Fund Summary. The Building Maintenance Department services all Village facilities and properties. Each year, in conjunction with the development of the C apital I mprovement Plan (CIP), departments submit building requests that they would like completed in the coming fiscal year. These are requests for building improvements, general maintenance is preformed 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 2014 FY 2015 FY 2016 FT PT FT PT FT PT Building Maintenance Supervisor 1 0 1 0 0 0 -Building Maintenance Manager 0 0 0 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 0 280 Budget Summary Building Maintenance FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 307,410 344,664 395,570 Personal Benefits 169,668 181,085 192,025 Operating Expenses 84,066 175,347 146,055 Contractual Services 17,193 24,300 26,846 Repairs and Maintenance 309,298 410,065 491,222 Capital Equipment 18,787 25,350 25,000 Commodities 209,114 120,000 120,045 All Other Expenses 269 - - Total 1,115,805 1,280,811 1,396,763 Budget Variance Building Maintenance Line item Number Account Description Percent Change Dollar Amount Change Description of Change 500.35 Overtime 25.91% 2,058 Increase based on historical usage 500.40 Longevity (27.29%) (1,000) Reduction of employee 505.10 Professional Training 33.33% 500 IPSI Training 510.04 Travel (100.00%) (200) Reduction based on historical usage 510.21 IT Internal Svc Contribution (100.00%) (19,358) Recalibrated cost basis 545.01 Central Garage Internal Svc (100.00%) (41,122) Recalibrated cost basis 515.15 IRMA Deductible - Worker's Comp 46.64% 1,781 Increase based on historical usage 535.05 Sidewalks, Curb, and Bike paths (100.00%) (300,000) Reclassed to CIP 535.10 Streets & Highways (100.00%) (253,000) Reclassed to PW Streets 535.20 Buildings & Facilities (11.15%) (27,143) Reclassed to Fire Department 535.40 Irrigation System (100.00%) (20,000) Reclassed to Golf 530.20 Gas - Facilities 45.45% 5,000 Increase based on historical usage 281 1,115,805 1,280,811 1,396,763 Total Building Maintenance Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 282 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 213 - Building Maintenance Fund 55 - Operating Transfers 460.05 Operating Transfers Interfund Transfers In - - - - - 461.02 Internal Service Contributions Building Maintenance Fund - - 2,042,347 1,280,811 1,396,763 55 - Operating Transfers - - 2,042,347 1,280,811 1,396,763 Percent Change 2016 vs 2015 Budget -31.61% Revenues Total - - 2,042,347 1,280,811 1,396,763 Percent Change 2016 vs 2015 Budget -31.61% 283 Expenditures Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 213 - Building Maintenance Fund Department: 94 - Building Maintenance 10 - Salaries 500 Personal Services - - - - - 500.05 Personal Services Salaries - Full Time 328,466 292,961 385,876 330,000 382,906 500.10 Personal Services Salaries - Part Time 81 770 - - - 500.35 Personal Services Salaries - Overtime 6,464 10,479 7,942 12,000 10,000 500.40 Personal Services Salaries - Longevity 3,200 3,200 3,664 2,664 2,664 10 - Salaries 338,212 307,410 397,482 344,664 395,570 Percent Change 2016 vs 2015 Budget -0.48% 15 - Taxes and Benefits 505.05 Personal Benefits Group & Medical Life 94,887 91,160 87,018 87,018 95,250 505.10 Personal Benefits Professional Training 40 920 1,500 1,000 2,000 505.15 Personal Benefits Dues & Memberships 222 366 500 500 500 505.20 Personal Benefits Clothing Allowance 640 953 875 875 875 505.26 Personal Benefits Uniform Rental 4,233 9,606 6,273 6,273 6,273 505.35 Personal Benefits Safety Equipment 312 - 1,950 1,750 2,000 505.45 Personal Benefits ICMA Deferred Compensation - - - - - 505.75 Personal Benefits Employer's Contribution - FICA - 18,233 24,644 24,644 24,525 505.80 Personal Benefits Employer's Contribution - IMRF - 41,256 53,262 53,262 54,866 505.85 Personal Benefits Employer's Contribution Medicare - 4,264 5,763 5,763 5,736 15 - Taxes and Benefits 100,334 169,668 181,785 181,085 192,025 Percent Change 2016 vs 2015 Budget 5.63% 25 - Operating Expenses 510.02 Operating Expenses Telephone 1,205 4,944 2,500 2,500 2,500 510.04 Operating Expenses Travel - - 200 - - 510.10 Operating Expenses Maintenance Contracts 60,371 65,068 108,300 108,300 108,300 510.12 Operating Expenses Equipment Rental - 11,682 500 500 540 510.14 Operating Expenses Subscriptions & Publications - - 220 220 220 510.20 Operating Expenses Computer Services - - - - - 510.21 IT Internal Svc Contribution - - 19,358 16,304 - 284 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 510.40 Operating Expenses Supplies - Office 342 489 600 600 600 510.50 Operating Expenses Supplies - All Other 9,210 1,883 33,350 20,000 33,350 510.55 Operating Expenses Operating Equip - Department - - 500 500 545 545.01 Central Garage Internal Svc - - 41,122 26,423 - 25 - Operating Expenses 71,128 84,066 206,650 175,347 146,055 Percent Change 2016 vs 2015 Budget -29.32% 30 - Contractual Services 515.05 Insurance IRMA Premium - 17,823 17,900 17,900 17,900 515.10 Insurance Unemployment Insurance 1,600 800 800 800 800 515.15 Insurance IRMA Deductible - Worker's Comp - (1,430) 3,819 5,600 5,600 515.20 Insurance IRMA Deductible - Non Wrker's Co - - 2,546 - 2,546 30 - Contractual Services 1,600 17,193 25,065 24,300 Percent Change 2016 vs 2015 Budget 7.11% 40 - Repairs and Maintenance 535.05 - - 300,000 - - 535.10 Maintenance & Repairs - Facilities Streets & Highways - 788 253,000 - - 535.15 Maintenance & Repairs - Facilities Street Lights 243,872 203,829 216,000 180,000 216,000 535.20 Maintenance & Repairs - Facilities Buildings & Facilities 92,904 97,557 243,365 208,365 216,222 535.35 Maintenance & Repairs - Facilities Golf Course - - 56,800 20,000 56,800 535.40 Maintenance & Repairs - Facilities Irrigation System - - 20,000 - - 545.05 Maintenance & Repairs - Vehicles Gasoline - - - - - 545.10 Maintenance & Repairs - Vehicles Diesel Fuel - - - - - 545.15 Maintenance & Repairs - Vehicles Automotive Parts - - - - - 545.20 Maintenance & Repairs - Vehicles Garage Labor - - - - - 545.25 Maintenance & Repairs - Vehicles Lubricants - - - - - 545.30 Maintenance & Repairs - Vehicles Garage Overhead - - - - - 545.35 Maintenance & Repairs - Vehicles Body Work - - - - - 545.40 Maintenance & Repairs - Vehicles Contractual Auto Services - - - - - 285 Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget 550 Maintenance & Repairs - Other - - - - - 550.05 Maintenance & Repairs - Other Department Equipment - - 2,100 1,600 2,100 550.10 Maintenance & Repairs - Other Radios - - 100 100 100 40 - Repairs and Maintenance 338,282 309,298 1,091,365 410,065 491,222 Percent Change 2016 vs 2015 Budget -54.99% 45 - Commodities 530.10 Commodities Electricity - Street Lights 92,955 129,904 98,000 98,000 98,000 530.15 Commodities Electricity - Water & Sewer - - - - - 530.20 Commodities Gas - Facilities 312 69,227 11,000 16,000 16,000 530.25 Commodities Gas - Street Lights 7,271 9,982 5,500 5,500 5,500 530.50 Commodities Small Equipment Tools & Hardware 133 - 500 500 545 45 - Commodities 100,671 209,114 115,000 120,000 120,045 Percent Change 2016 vs 2015 Budget 4.39% 50 - Other Expenses 580.05 All Other Expense All Other Expenses 4,142 269 - - - 50 - Other Expenses 4,142 269 - - - Percent Change 2016 vs 2015 Budget 0.00% 55 - Capital Outlay 555.10 Capital Equipment Office and Other Equipment - - 250 600 250 555.20 Capital Equipment Automobiles & Trucks - - 5,623 5,623 5,623 555.30 Capital Equipment Reserve for Capital Replacement 14,207 14,207 14,207 14,207 14,207 555.40 Capital Equipment Reserve for Technology - 1,000 1,000 1,000 1,000 555.50 Capital Equipment Reserve for Buildings - 3,580 3,920 3,920 3,920 55 - Capital Outlay 14,207 18,787 25,000 25,350 25,000 Percent Change 2016 vs 2015 Budget 0.00% Expenditures Total 968,577 1,115,805 2,042,347 1,280,811 1,396,763 Percent Change 2016 vs 2015 Budget -31.61% 286 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 5 percent.    The Police Pension Board has invested about 60 percent of its investment portfolio in equity related instruments  (mutual funds and separate stocks) and 40 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 7.1 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   2014 Actual 2015 Estimate 2016 Projected  Unfunded Liability  (in thousands) $24,553 $26,104 $27,931  Assets (in thousands) $51,387 $55,238 $59,105  Percent Funded 67.67% 67.91% 68.24%  Number of Active  Participants 64 63 66  Number of Inactive  Participants 43 48 50    Departmental Staffing  No full time or part time employees are assigned to this program.    Budget Summary  Police Pension Fund   FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Benefits 2,747,592 3,110,997 3,320,216  All Other Expenses 257,878 265,000 292,500  Total 3,005,470 3,375,997 3,612,716        Budget Variance Police Pension Fund Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 505.55 Survivor Pension - Police 76.67% 75,542 Death of pensioner 505.60 Pension Payment - Police 11.72% 304,823 Additional retirements in 2016 505.70 Pension Refund - Police 53.74% 52,434 Refund for ineligible officers 580.40 Investment Fees 51.52% 85,000 Increase due to trend in fees 3,005,470 3,375,997 3,612,716 Total Police Pension Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 290 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 220 - Police Pension Fund 45 - Interest Income 450.05 Savings 3,794 - 4,000 - - 450.10 Investment Pool - - - - - 450.15 Money Market - - - - - 450.20 CD's - - - - - 450.25 Securities 402,568 454,324 407,519 480,000 495,000 450.26 Fixed Income 186,063 197,252 220,000 235,000 250,000 450.30 Security Disc/Prem - - - - - 450.35 Transaction - - - - - 450.40 Annuity Gain/Loss - - - - - 450.45 Stock Dividend 70,750 168,697 - 185,000 200,000 450.50 Fixed Income (761,580) 382,168 550,000 125,000 125,000 450.55 Mutual Funds 471,810 372 218,965 60,000 60,000 450.60 Equity Securities 5,320,833 2,778,211 2,311,679 1,120,000 2,000,000 45 - Interest Income 5,694,237 3,981,024 3,712,163 2,205,000 3,130,000 Percent Change 2016 vs 2015 Budget -15.68% 50 - Miscellaneous Revenue 465.40 Pension Contributions - ER - - - - - 465.41 Pension Contributions - EE 568,266 654,674 641,947 641,947 663,222 465.42 Pension Service Credit Purchase - - - - - 465.90 Miscellaneous Income - 20 - 50 - 50 - Miscellaneous Revenue 568,266 654,694 641,947 641,997 663,222 Percent Change 2016 vs 2015 Budget 3.31% 55 - Operating Transfers 460.05 Operating Transfers Interfund Transfers In 2,228,447 2,083,758 2,256,676 2,256,676 2,440,239 55 - Operating Transfers 2,228,447 2,083,758 2,256,676 2,256,676 2,440,239 Percent Change 2016 vs 2015 Budget 8.13% Revenues Total 8,490,951 6,719,476 6,610,786 5,103,673 6,233,461 Percent Change 2016 vs 2015 Budget -5.7 0% 291 Expense Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Department: 88 - Police Pension 15 - Taxes and Benefits 505.55 Survivor Pension - Police 98,534 98,534 98,533 170,662 174,075 505.60 Pension Payment - Police 2,270,489 2,461,964 2,600,000 2,700,807 2,904,823 505.65 Disability Payment - Police 89,528 89,528 89,528 89,528 91,318 505.70 Pension Refund - Police 35,576 97,566 97,566 150,000 150,000 Account Classification Total: 15 - Taxes and Benefits 2,494,126 2,747,592 2,885,627 3,110,997 3,320,216 Percent Change 2016 vs 2015 Budget 15.06% 50 - Other Expenses 580.05 All Other Expense 47,221 33,343 40,000 40,000 42,500 580.40 Investment Fees 143,394 224,535 165,000 225,000 250,000 Account Classification Total: 50 - Other Expenses 190,614 257,878 205,000 265,000 292,500 Percent Change 2016 vs 2015 Budget 42.68% Department Total: 88 - Police Pension 2,684,741 3,005,470 3,090,627 3,375,997 3,612,716 Percent Change 2016 vs 2015 Budget 16.89% Expenditures Total 2,684,741 3,005,470 3,090,627 3,375,997 3,612,716 Percent Change 2016 vs 2015 Budget 16.89% 292 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 5 percent.    The Firefighters Pension Board has invested about 56 percent of its investment portfolio in equity related  instruments (mutual funds and separate stocks) and 44 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 was 7.01 percent.    The 2014 budget includes pensions for 33 annuitants.  25 are traditional retirements, four are disability pensions  and four are  surviving spouse/children.     Performance Activities and Measures  2014 Actual 2015 Estimate 2016 Projected  Unfunded Liability  (in thousands)  $19,611   $18,280   $21,022    Assets (in thousands)  $42,849    $47,198    $50,502    Percent Funded 68.6% 72.1% 72.5%  Number of Active  Participants 56 55 58  Number of Inactive  Participants 33 33 36      Departmental Staffing  No full time or part time employees are assigned to this program.    Budget Summary  Fire Pension Fund   FY 2014 Actual FY 2015 Est Actual FY 2016 Budget  Personal Benefits 1,943,411 1,857,534 1,966,491  All Other Expenses 189,731 123,592 165,000  Total 2,133,142 1,981,126 2,131,491           Budget Variance Fire Pension Fund Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 505.66 Disability Payment - Fire 20.00% 50,000 Additional retirement for disability 580.05 All Other Expenses (42.86%) (30,000) Reduction based on historical usage 580.40 Investment Fees 140.38% 73,000 Increase in management fees 2,133,142 1,981,126 2,131,491 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Total Fire Pension Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 294 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 230 - Fire Pension Fund 45 - Interest Income 450.05 Savings - - - - - 450.10 Investment Pool - - - - - 450.15 Money Market - - - - - 450.20 CD's 413,542 1,951,217 430,249 620,000 475,000 450.25 Securities - - - - - 450.30 Security Disc/Prem - - - - - 450.35 Transaction - - - - - 450.40 Annuity Gain/Loss - - - - - 450.45 Stock Dividend 686,203 - 762,297 350,000 350,000 450.50 Fixed Income (933,550) 445,422 108,137 200,000 125,000 450.55 Mutual Funds 5,804,070 946,640 2,512,024 1,450,000 980,000 45 - Interest Income 5,970,265 3,343,279 3,812,707 2,620,000 1,930,000 Percent Change 2016 vs 2015 Budget -49.38% 50 - Miscellaneous Revenue 465.40 Pension Contributions - ER - - - - - 465.41 Pension Contributions - EE 493,080 502,014 545,000 522,000 525,067 465.42 Pension Service Credit Purchase - - - - - 465.90 Miscellaneous Income - - - - - 50 - Miscellaneous Revenue 493,080 502,014 545,000 522,000 525,067 Percent Change 2016 vs 2015 Budget -3.66% 55 - Operating Transfers 460.05 Operating Transfers Interfund Transfers In 2,049,868 2,168,844 2,174,632 2,174,632 2,174,632 55 - Operating Transfers 2,049,868 2,168,844 2,174,632 2,174,632 2,174,632 Percent Change 2016 vs 2015 Budget 0.00% Department: 89 - Fire Pension 45 - Interest Income 450.55 Mutual Funds - - - - - 45 - Interest Income - - - - - Percent Change 2016 vs 2015 Budget 0.00% Department Total: 89 - Fire Pension - - - - - Percent Change 2016 vs 2015 Budget 0.00% Revenues Total 8,513,213 6,014,137 6,532,339 5,316,632 4,629,699 Percent Change 2016 vs 2015 Budget -29.13% 295 Expense Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Department: 89 - Fire Pension 15 - Taxes and Benefits 505.56 Survivor Pension - Fire 79,036 1,941,594 81,491 81,491 81,491 505.61 Pension Payment - Fire 1,453,572 - 1,750,000 1,464,799 1,585,000 505.66 Disability Payment - Fire 149,924 - 250,000 218,650 300,000 505.71 Pension Refund - Fire - 1,818 - 92,594 - 15 - Taxes and Benefits 1,682,532 1,943,411 2,081,491 1,857,534 1,966,491 Percent Change 2016 vs 2015 Budget -5.52% 50 - Other Expenses 580.05 All Other Expenses 149,779 42,368 70,000 30,000 40,000 580.40 Investment Fees - 147,363 52,000 93,592 125,000 50 - Other Expenses 149,779 189,731 122,000 123,592 165,000 Percent Change 2016 vs 2015 Budget 35.25% Department Total: 89 - Fire Pension 1,832,311 2,133,142 2,203,491 1,981,126 2,131,491 Percent Change 2016 vs 2015 Budget -3.27% Expenditures Total 1,832,311 2,133,142 2,203,491 1,981,126 2,131,491 Percent Change 2016 vs 2015 Budget -3.27% 296 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 operati on of the commuter station parking lot at the Canadian National/METRA site. Rates for daily parking are $2.00/day. The Village offers a quarterly prepaid parking pass for $120. As fuel costs continue to fluctuate and employment numbers steadily increase th e 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 in vested significant resources to modernize the Metra parking lot payment system. Commuters have the option to pay with cash or credit card at the terminal s 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 FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Personal Services 1,403 - - Personal Benefits 107 - - Operating Expenses 141,378 148,595 149,654 Contractual Services - - - Repairs & Maintenance 76,647 8,500 17,500 Commodities - 12,500 14,000 All Other Expenses - 500 500 Other Financing Sources - 12,000 12,000 Total 219,535 182,095 193,654 Budget Variance Parking Lot Line Item Number Account Description Percent Change Dollar Amount Change Description of Change 510.50 Supplies - All Other New 1,800 Supplies to maintain station 510.83 Credit Card Fees New 7,500 Processing fees 535.20 Buildings & Facilities 900.00% 13,500 Repair and maintain station 535.25 Parking Lots 150.00% 1,500 Pave and patch lot 530.10 Street Lights 166.67% 1,250 Repair and maintain lights 530.20 Gas - Facilities 33.33% 500 Increase to heat building 580.05 All Other Expenses 100.00% 250 Misc. expenditures 570.10 Operating Transfers Corporate Fund New 12,000 Transfer to repay corporate fund for costs incurred 299 231,785 182,095 193,654 0 50,000 100,000 150,000 200,000 250,000 Total Parking Lot Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 300 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 120 - Metra Parking Lot Fund 35 - Fines and Fees 455 Fines & Fees - - - - - 455.70 Parking Fees - Daily Metra 45,060 54,330 55,000 55,000 62,700 455.75 Parking Fees - Parking Passes 103,485 125,816 125,000 125,000 166,250 35 - Fines and Fees 148,545 180,146 180,000 180,000 228,950 Percent Change 2016 vs 2015 Budget 27.19% 50 - Miscellaneous Revenue 465 All Other Revenue - - - - - 465.20 Facility Rental 991 1,098 1,100 1,050 1,050 465.90 Miscellaneous Income - - - - - 50 - Miscellaneous Revenue 991 1,098 1,100 1,050 1,050 Percent Change 2016 vs 2015 Budget -4.55% Revenues Total 149,536 181,244 181,100 181,050 230,000 Percent Change 2016 vs 2015 Budget 27.00% 301 Expenses Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 120 - Metra Parking Lot Fund Department: 81 - Metra Parking 10 - Salaries 500.10 Part Time 12,854 1,403 - - - 10 - Salaries 12,854 1,403 - - - Percent Change 2016 vs 2015 Budget 0.00% 15 - Taxes and Benefits 505.75 Employer's Contribution - FICA 5 87 - - - 505.85 Employer's Contribution Medicare 1 20 - - - 15 - Taxes and Benefits 6 107 - - - Percent Change 2016 vs 2015 Budget 0.00% 25 - Operating Expenses 510.10 Maintenance Contracts 6,005 2,861 2,500 2,500 2,500 510.50 Supplies - All Other 3,160 1,604 - 3,160 1,800 510.83 Credit Card Fees - 6,076 - 7,500 7,500 510.92 Lease Payments 116,239 118,989 120,935 120,935 123,354 510.95 Pace Fees 14,678 11,847 14,500 14,500 14,500 25 - Operating Expenses 140,082 141,378 137,935 148,595 149,654 Percent Change 2016 vs 2015 Budget 8.50% 40 - Repairs and Maintenance 535.20 Buildings & Facilities 38,522 73,747 1,500 6,000 15,000 535.25 Parking Lots - 2,900 1,000 2,500 2,500 535.30 Parkway Trees - - - - - 40 - Repairs and Maintenance 38,522 76,647 2,500 8,500 17,500 Percent Change 2016 vs 2015 Budget 600.00% 45 - Commodities 530.05 Facilities - - 10,000 10,000 10,000 530.10 Street Lights - - 750 1,000 2,000 530.20 Gas - Facilities (306) - 1,500 1,500 2,000 530.45 Chemicals and Fertilizers - - - - - 45 - Commodities (306) - 12,250 12,500 14,000 Percent Change 2016 vs 2015 Budget 14.29% 50 - Other Expenses 580.05 All Other Expenses 1,240 - 250 500 500 302   Description 2013  Actual  2014  Actual  2015  Budget  2015 Est  Actual  2016  Budget  50 ‐ Other Expenses 1,240 ‐ 250 500 500  Percent Change 2016 vs 2015 Budget 100.00%  65 ‐ Other Financing Uses  570.10 Operating Transfers Corporate Fund ‐ ‐ ‐ 12,000 12,000  65 ‐ Other Financing Uses ‐ ‐ ‐ 12,000 12,000  Percent Change 2016 vs 2015 Budget 0.00%  Department Total: 81 ‐ Metra Parking 192,398 219,535 152,935 182,095 193,654  Percent Change 2016 vs 2015 Budget 26.63%  Expenditures Total 192,398 219,535 152,935 182,095 193,654  Percent Change 2016 vs 2015 Budget 26.63%       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, 2016, the Village has $10.04 million in outstanding general obligation debt with an average interest rate of 2.73 percent. Property taxes will be levied as the primary funding source for the annual principal and interest payments. In addition, the Village is utilizing $4 million of the $6 million line of credit to address the replacement of nearly 6,300 Village owned ash trees. The Village intends on drawing against that line of credi t to continue to replenish trees Village wide. The Village will extend the line to November 2018 and add an additional 2 million to the line for cash flow purposes to fund capital improvements. 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 th e 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 2014 for existing as well as new debt. Budget Summary Debt Service Fund FY 2014 Actual FY 2015 Est Actual FY 2016 Budget Operating Expenses - - - Debt Service 1,103,664 807,813 810,063 Total 1,103,664 807,813 810,063 1,103,664 807,813 810,063 Total Debt Service FY 2014 Actual FY 2015 Est Actual FY 2016 Budget 304 Revenue Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 140 - Debt Service Fund 10 - Property Taxes 400 Property - - - - - 400.40 Property Debt Service - Lake County 699,177 683,772 147,456 147,456 149,456 400.41 Property Debt Service - Cook County 212,267 206,195 477,357 477,357 477,607 10 - Property Taxes 911,445 889,967 624,813 624,813 627,063 Percent Change 2016 vs 2015 Budget 0.36% 45 - Interest Income 450 Investment Revenue - - - - - 450.05 Savings - - - - - 450.10 Investment Pool - 30 - - - 45 - Interest Income - 30 - - - Percent Change 2016 vs 2015 Budget 0.00% 50 - Miscellaneous Revenue 465.90 All Other Revenue Miscellaneous Income - - - - - 50 - Miscellaneous Revenue - - - - - Percent Change 2016 vs 2015 Budget 0.00% 55 - Operating Transfers 460 Operating Transfers - - - - - 460.05 Interfund Transfers In 382,605 200,000 180,000 180,000 180,000 55 - Operating Transfers 382,605 200,000 180,000 180,000 180,000 Percent Change 2016 vs 2015 Budget 0.00% Revenues Total 1,294,050 1,089,997 804,813 804,813 807 ,063 Percent Change 2016 vs 2015 Budget 0.28% 305 Expenses Description 2013 Actual 2014 Actual 2015 Budget 2015 Est Actual 2016 Budget Fund: 140 - Debt Service Fund Department: 85 - Debt 25 - Operating Expenses 510.04 Travel - - - - - 25 - Operating Expenses - - - - - Percent Change 2016 vs 2015 Budget 0.00% 60 - Debt Service 565.10 Principal 940,000 790,000 510,000 510,000 525,000 565.20 Interest 381,800 311,513 294,813 294,813 282,063 565.30 Paying Agent Fees 3,596 2,151 3,000 3,000 3,000 60 - Debt Service 1,325,396 1,103,664 807,813 807,813 810,063 Percent Change 2016 vs 2015 Budget 0.28% Department Total: 85 - Debt 1,325,396 1,103,664 807,813 807,813 810,063 Percent Change 2016 vs 2015 Budget 0.00% Expenditures Total 1,325,396 1,103,664 807,813 807,813 810,063 Percent Change 2016 vs 2015 Budget 0.28% 306 Appendix A      Comprehensive Fee and Tax Schedule  Administrative Fees  Building and Development/Health Fees  Planning and Zoning Fees  Police Department Fees  Fire Department Fees  Engineering Fees  Water Connection Fees  Business Taxes, Licenses and Regulations  Taxes Schedule                              Administrative Fee Schedule Description Amount Reference Municipal Commuter Station parking lot fees Daily fee - $2.00 BGMC 3.52 (Ord. No. 2009-72, § 1, 11-2-2009)* This ordinance number will be updated upon pending board approval Citation and Compliance Violations The violation described on the citation may be settled in the amount set forth in the Table of Settlement Amounts in Section 10.18.040 of this Chapter, as follows: SEE CITATION LIST BELOW BGMC 10.18(Ord. No. 2009-66, § 2, 10-5-2009) Vehicle Seizure and Impoundment $500.00 to the Village and all applicable towing and storage fees are paid to the towing agent. BGMC 10.20(Ord. No. 2013-71, § 1, 10-21-2013) Administrative Adjudication Hearing Fee $25.00 to $50.00 BGMC Section 2.62.040.E.7 Fines Associated With Violations Heard Through Administrative Adjudication Chapter / Section Title/ Offences Fine if Paid within 14 Days of Initial Notice Fine if Paid After 14 Days of Notice but Before Hearing Minimum Fine at Hearing Minimum Fine - Must Appear at Hearing Municipal Commuter Station Parking Lot Fees 3.52.020 Failure to Pay Daily Parking Fee- Metra $25 $50 $25 3.52.040 Resident Parking Only Violation-Metra $25 $50 $25 3.52.055 Failure to Pay Daily Parking Fee- Township $25 $50 $25 Liquor Controls 5.20.190 Alcohol underage/possession/ consumption/sale $75 Solicitors 5.24.020 Soliciting without a permit $50 $75 $50 5.24.080 Soliciting where posted “No Soliciting” $50 $75 $50 5.24.090 Soliciting – failure to leave when requested $50 $75 $50 5.24.100 Soliciting in violation of soliciting hours/days $50 $75 $50 Tobacco 5.32.090 Sale/delivery of tobacco products to a minor $75 5.32.105 Possession of tobacco products by minor $50 Hours of Operation Adjacent to Residential Areas 5.40.040 Violation of Hours of Operation requirements $75 $100 $75 Care and Control 6.12.010 No Rabies Vaccination -1st Violation $50 $75 $50 6.12.010 No Rabies Vaccination -2nd Violation $75 $100 $75 6.12.010 No Rabies Vaccination -3rd Violation $100 $150 $100 6.12.020 No Dog or Cat License $100 $150 $100 6.12.060 Failure to Remove Excrement -1st Violation $50 $75 $50 6.12.060 Failure to Remove Excrement -2nd Violation $75 $100 $75 6.12.060 Failure to Remove Excrement -3rd $100 $150 $100 309 Violation 6.12.070 Dog or Cat at Large -1st Violation $50 $75 $50 6.12.070 Dog or Cat at Large -2nd Violation $75 $100 $75 6.12.070 Dog or Cat at Large -3rd Violation $100 $150 $100 6.12.080 Excessive Number of Animals -1st Violation $50 $75 $50 6.12.080 Excessive Number of Animals -2nd Violation $75 $100 $75 6.12.080 Excessive Number of Animals -3rd Violation $100 $150 $100 6.12.090 Prohibited Animal -1st Violation $50 $75 $50 6.12.090 Prohibited Animal -2nd Violation $75 $100 $75 6.12.090 Prohibited Animal -3rd Violation $100 $150 $100 6.12.150.D Excessive Dog Barking -1st Violation $50 $75 $50 6.12.150.D Excessive Dog Barking -2nd Violation $75 $100 $75 6.12.150.D Excessive Dog Barking -3rd Violation $100 $150 $100 Refuse 8.20.020 Lack of required refuse service $50 $75 $50 8.20.030 Littering $100 $150 $100 8.20.070 Garbage-Out Too Early $25 $50 $25 8.20.090 Garbage-Unsecured $25 $50 $25 8.20.100 Illegal Dumping/Burning $50 $100 $50 Nuisances and Miscellaneous Health Laws 8.24.020 Stagnant water creating mosquito nuisance $50 $75 $50 8.24.060 Pest infestation – Insects $50 $75 $50 8.24.070 Pest infestation – Rodents $50 $75 $50 8.24.110 Improper feeding of wildlife $50 $75 $50 Weeds, Grass, Refuse and Junk 8.32.010 Weeds in Excess of 12 Inches $50 $75 $50 8.32.010.B Grass in Excess of 6 Inches $50 $75 $50 Alarm Systems 9.04.020 No Valid Alarm Permit $25 $50 $25 Controlled Substances 9.16.020 Possession of Cannabis (under 10 grams) $200 $300 $200 Drug Paraphernalia 9.17.020 Possession/ sale of drug paraphernalia $100 $200 $100 Disorderly Conduct 9.28.010 Disorderly conduct $100 9.28.010.C Possession of fireworks $50 $75 $50 9.28.025 Public Nuisance Assemblage/Social Host $100 $150 $100 Smoking in Public Places 9.32.020 Smoking in Enclosed Public Place $50 $75 $50 9.32.030 Smoking in Place of Employment $50 $75 $50 9.32.040 Smoking in Open Air Dining Area $50 $75 $50 9.32.050 Smoking at Entrance $50 $75 $50 Noise 9.38.020 Noise Prohibited $75 $125 $75 9.38.030 Noise within a multi-family structure $100 $200 $100 310 9.38.037 Construction regulations – hours of work $75 $100 $75 Trespass and Damage to Property 9.48.020 Trespass $75 9.48.030A Damage to Village property $75 9.48.040 Graffiti $75 Theft 9.52.020 Theft $150 Curfew 9.68.010 Curfew $75 Truancy 9.70.010 Truancy $75 Weapons 9.80.010 Air rifle/BB gun/Gun discharge $75 Snow 10.08.010 Parking—After 2 inch Snow $25 $50 $25 10.08.020 Dumping Snow in Street $25 $50 $20 Buffalo Grove Vehicle and Traffic Code. Adoption by Reference of the Illinois Vehicle Code (IVC) 5/3-401 No valid registration $50 $75 $50 5/3-413 (a) No front/rear registration plate $50 $75 $50 5/3-413 (b) Tinted/obscured license plate covers $50 $75 $50 5/3-413 (f) Operation of vehicle w/expired registration $50 $75 $50 5/3-701 Inoperable odometer under mileage plates $50 $75 $50 5/1-100 et seq. Miscellaneous Traffic Code Violations $50 $75 $50 5/11-1303.(a).1.b. Jay Walking $25 $50 $25 5/11-1301.3 Handicapped Zone Parking $250 $375 $250 5/11-1303.(a).1.b. Parked Blocking Sidewalk $25 $50 $25 5/11-1303.(a).2.b. Parked Within 15 feet of Fire Hydrant $25 $50 $25 5/11--1303.(a).2.c. Parked Within 20 feet of Crosswalk $25 $50 $25 5/11-1303.(a).2.d. Parked Within 30 feet of Traffic Control Device $25 $50 $25 5/11-1303.(a).3.b. Parking Where Prohibited $25 $50 $25 5/11-1303.(a).3.b. Parking in Loading Zone $25 $50 $25 5/11-1304.a. Parking over 12 inches from Curb $25 $50 $25 5/11-1304.a. Parking -Left Wheels to Curb $25 $50 $25 5/6-112 Driver’s license not on person $50 $75 $50 5/6-116 Failure to notify Secretary of State – change of address $50 $75 $50 5/12-713 Improperly marked vehicles – Contractor $50 $75 $50 5/12-101 Unsafe equipment $50 $75 $50 5/12-201 (a) Driving motorcycle w/out lighted headlight $50 $75 $50 5/12-201 (b) Driving w/out lights when required $50 $75 $50 5/12-201 (b) Only one tail light $50 $75 $50 5/12-201 (c) No rear license plate light $50 $75 $50 5/12-204 Improper lamp or flag on projected load $50 $75 $50 311 5/12-207 Improper use of spot lamp/aux driving lamps $50 $75 $50 5/12-208 No stop lights $50 $75 $50 5/12-209 (c) Defective back -up lights $50 $75 $50 5/12-210 Failure to dim headlights $50 $75 $50 5/12-211 Only one headlight $50 $75 $50 5/12-301 Defective brakes $50 $75 $50 5/12-405 (c) Use of unsafe tire $50 $75 $50 5/12-502 No rear view mirror $50 $75 $50 5/12-503 (c) Obstructed windshield $50 $75 $50 5/12-503 (d) Obstructed windows – snow, ice, moisture $50 $75 $50 5/12-503 (d) No windshield clearing device (wipers) $50 $75 $50 5/12-601 (a) Defective or no horn $50 $75 $50 5/12-602 $50 $75 $50 5/12-608 No bumper or unlawful bumper height $50 $75 $50 5/12-611 Illegal operation of sound amplification - 75’ $50 $75 $50 5/12-702 No flags, flares, warning devices carried $50 $75 $50 5/12-710 Inadequate or no splash guards (mud flaps) $50 $75 $50 Towing BG-4 -101.E.1. Abandoned vehicle over 7 days $25 $50 $25 Rules of the Road BG-11-1303.C.1. Parking on Parkway or Median $25 $50 $25 BG-11-1303.C.2.b. Parking—Blocking Driveway $25 $50 $25 BG-11-1303.C.2.c. Parking in Posted Fire Lane $25 $50 $25 BG-11-1308.1. Parking on Street 2 am to 6 am $25 $50 $25 BG-11-1311 Selling Vehicle on Street $25 $50 $25 Trees, Shrubs, and Other Plants 12.20.070 Trees/vegetation obstructing public sidewalks $100 $150 $100 12.20.080 Trees/vegetation creating visual obstructing $100 $150 $100 Water System Cross-connection Control 13.05.110. A.2. Inspection and maintenance $50 $75 $50 Water Conservation 13.16.020 Sprinkling Ban Violation (12-6 pm) $100 $150 $100 Sign Code 14.12.010 Signs Installed without a Permit $50 $75 $50 14.32.060 Signs Placed in the Public Right of Way $50 $75 $50 International Building Code. Adoption by Reference of the International Building Code (IBC) IBC 105.1 Failure to secure required permit (Commercial) $200 $300 $200 International Residential Code One-and Two -Family Dwellings. Adoption by Reference of the International Residential Code One - and Two-Family Dwellings (IRC) IRC 105.1 Failure to secure required permit (Residential) $50 $75 $50 Property Maintenance Code. Adoption by Reference of the International Property Maintenance Code (IPMC) IPMC 302.8, as amended Parking on non-approved surface/grass/lawn $50 $75 $50 IPMC 302.8, as amended Unlicensed vehicle $100 $150 $100 312 Building and Development/Health Fee Schedule Description Amount Reference Permit Cancellation Fee $50.00 Ord. 2013-067 Construction Fees Construction costs up to 1,000.00 $50.00 Ord. 2008-048 Construction costs over $1,000.00 $50.00 for the first 1,000.00 and $10.00 for each additional 1,000.00 or portion thereof. Ord. 2008-048 Decks, Sheds, Gazebos and Patios $55.00 plus 0.15 a sq. ft Ord. 2008-048 Building Plan Review Fees Building Sq. Ft. Plan Review Fee Up to 500 $50.00 Ord. 2008-048 501-1,000 $75.00 Ord. 2008-048 1,001-2,000 $125.00 Ord. 2008-048 2,001-3,000 $175.00 Ord. 2008-048 3,001-4,000 $200.00 Ord. 2008-048 4,001-5,000 $250.00 Ord. 2008-048 5,001 and over $0.05 per sq. ft. Ord. 2008-048 Where impractical to compute plan review fees on a square foot basis .25% (.0025) of the cost of construction Ord. 2008-048 Development Ordinance variation for residential property $125.00 Ord. 2013-067 Plumbing Permit Fees RPZ Installation $50.00 Ord. 2013-67 Water heater $50.00 Ord. 2008-048 Each sump pump pit $15.00 Ord. 2008-048 IPMC 302.8, as amended Vehicle in a state of disrepair $75 $125 $75 IPMC 304 Property in disrepair $75 $125 $75 IPMC 307 Junk/Garbage/Debris on property $75 $100 $75 Plumbing Code 15.12.030 Downspout and sump pump discharges $75 $100 $75 Fence Code 15.20.100 Fence in Disrepair $100 $150 $100 Residential Rental Housing Program 15.36.040 Renting property without a license $100 $150 $100 15.36.060 Failure to schedule/allow rental inspection $100 $150 $100 $100 Definitions 17.12.230 Use or occupancy of a One-Family Dwelling by more than one family $25 $50 $25 $25 Driveways and Off-Street Parking and Loading Facilities 17.36.030 Improper Recreational Vehicle Parking $50 $100 $50 $50 17.36.030 Improper parking of a commercial vehicle/Residential District $25 $50 $25 $25 17.36.030 Oversized Vehicle $25 $50 $25 $25 17.36.030 Improperly maintained parking lots $50 $100 $50 $50 17.36.030 Improperly marked accessible parking spaces $50 $100 $50 $50 313 Each sewer service $15.00 Ord. 2008-048 Each water service $15.00 Ord. 2008-048 Each water meter $15.00 Ord. 2008-048 Each cleanout $10.00 Ord. 2008-048 Each plumbing fixture or opening not listed $10.00 Ord. 2008-048 In -ground swimming pool $60.00 Ord. 2008-048 Lawn sprinkler system $4.00/per head $75.00 minimum Ord. 2008-048 Sewer repair $65.00 Ord. 2008-048 Minimum plumbing fee $50.00 Ord. 2008-048 Plan review fee $50.00 or 25% of building plan review fee- whichever is greater Ord. 2008-048 Electrical Permit Fees Fees per circuit: 15 amp $7.00 each Ord. 2008-048 20 amp $12.00 each Ord. 2008-048 30 amp $20.00 each Ord. 2008-048 40 amp $25.00 each Ord. 2008-048 50 amp $30.00 each Ord. 2008-048 60 amp $40.00 each Ord. 2008-048 Electrical Service, including revisions 100 amp $50.00 Ord. 2008-048 101 – 200 amp $75.00 Ord. 2008-048 201 – 400 amp $100.00 Ord. 2008-048 401 – 800 amp $150.00 Ord. 2008-048 801 – 1,199 amp $200.00 Ord. 2008-048 1,200 – 4,000 amp $250.00 Ord. 2008-048 4,001 – 8,000 amp $300.00 Ord. 2008-048 Feeder Circuits 60 – 100 amp $35.00 Ord. 2008-048 101 – 200 amp $50.00 Ord. 2008-048 201 – 400 amp $65.00 Ord. 2008-048 401 – 600 amp $85.00 Ord. 2008-048 601 – 1,000 amp $110.00 Ord. 2008-048 1,001 – 2,000 amp $130.00 Ord. 2008-048 Motors ¾ horsepower and over $25.00 for the first 10 and 15.00 for each additional Ord. 2008-048 Under ¾ horsepower $10.00 each Ord. 2008-048 Additional System Fees: Audio communications $50.00 Ord. 2008-048 Intercom and Public Address System $50.00 Ord. 2013-67 Burglar alarm $50.00 Ord. 2008-048 Electronic computer/data processing $50.00 Ord. 2008-048 Fire alarm system $100.00 Ord. 2008-048 Fire alarm system $100.00 Ord. 2008-048 Relocatable wired $50.00 Ord. 2008-048 314 partitions Temporary wiring $50.00 Ord. 2008-048 Minimum electrical fee $50.00 Ord. 2008-048 Plan review fee 50.00 or 25% of building plan review fee- whichever is greater Ord. 2008-048 Mechanical Permit Fees Heating: Residential – new or replacement unit $50.00 Ord. 2008-048 All other uses (new installations) Per 2,000 sq. ft. or fraction thereof $50.00 Ord. 2008-048 Air Conditioning: (Window units not included) $50.00 Ord. 2013-067 Residential – new or replacement unit $50.00 Ord. 2013-067 All other uses (new installations) Per 2,000 sq. ft. or fraction thereof $50.00 Ord. 2013-067 Modification to existing duct work: Ord. 2013-067 Minimum mechanical fee $50.00 Ord. 2013-067 Plan review fee $50.00 or 25% of building plan review fee- whichever is greater Ord. 2008-048 Elevator Permit Fees New installation: Each elevator, dumbwaiter, moving walk, escalator, conveyor or man lift (includes initial inspection) $125.00 Ord. 2008-048 Semi-annual inspection/Certificate of compliance: Each elevator, dumbwaiter, moving walk, escalator, conveyor or man lift $80.00 per inspection Ord. 2008-048 Repairs and re- inspections $80.00 per inspection Ord. 2008-048 Plan review fee: Each elevator, dumbwaiter, moving walk, escalator, conveyor or man lift for building of four stories or less $175.00 Ord. 2008-048 Additional fee per floor for every story above four stories $10.00 Ord. 2008-048 Fire Protection Fees New automatic sprinkler system: 315 Each system, 1 -100 heads $125.00 Ord. 2008-048 Every 100 additional heads or fraction thereof $50.00 Ord. 2008-048 Renovation to an existing system: 20 heads or less $25.00 Ord. 2008-048 20-100 heads $50.00 Ord. 2008-048 Every 100 additional heads or fraction thereof $50.00 Ord. 2008-048 Partial system of the domestic water system $50.00 Ord. 2008-048 Standpipes (each) $50.00 Ord. 2008-048 Fire pumps (each) $50.00 Ord. 2008-04 Hood suppression systems $50.00 Ord. 2008-048 Clean agent extinguishing systems $50.00 Ord. 2008-048 Alternative fire extinguishing systems $50.00 Ord. 2008-048 Means of egress access control systems $50.00 Ord. 2008-048 Plan review/inspection fee $100.00 Ord. 2008-048 Fire alarm systems: New or modification to an existing system $60.00 Ord. 2008-048 Plan review /inspection fee: 5,000 sq. ft. or less $50.00 Ord. 2008-048 5,001 – 10,000 sq. ft. $5.00 per device (minimum $100.00) Ord. 2008-048 10,000 sq. ft. or more $5.00 per device (minimum $150.00) Ord. 2008-048 Swimming Pool Fees Above ground pools (installation or alteration) $50.00 Ord. 2008-048 In-ground pools will comply with building fee schedule. The installation permit fee shall be in addition to any electrical or plumbing fees that may be required Health Department Plan Review Fees Plan review fee $50.00 or 25% of building plan review fee- whichever is greater Ord. 2008-048 Re -inspection fee $50.00 Ord. 2008-048 316 Work prior to permit Double the normal permit fee with a minimum of $50.00 and a maximum of $1,000.00 Ord. 2008-048 Certificate of Occupancy Fee Residential (per unit) $50.00 Ord. 2008-048 Non-residential (per unit) $150.00 Ord. 2008-048 Zoning Code/Compliance Letter Zoning Code/Compliance letter (non- residential only) $150.00 Ord. 2008-048 Parking Lot Repairs/Restriping Parking lot repairs/restriping $50.00 Ord. 2011-043 Zoning Variation All One and Two Family Dwellings: Variations for principal structures $125.00 Ord. 2013-067 Variations – other than principal structures $125.00 Ord. 2013-067 All Multiple Family Dwellings: Variation for principal structure $175.00 Variation – other than principal structure $125.00 All Business, Office/Research and Industrial Buildings: Partial Roof Inspection Fee $50.00 Variation for principal structure $175.00 Variation – other than principal structure $125.00 Fence Permit Fees First 100 lineal feet $35.00 Ord. 1995-015 Each additional 100 lineal feet or any part thereof $5.00 Ord. 1995-015 Fence Code Variation: Fence variation application fee $125.00 Ord. 2003-032 Sign Permit Fees Wall sign non- illuminated $50.00 plus $0.25 a sq. ft. 317 Wall sign illuminated $50.00 plus $0.25 a sq. ft. Ord. 2012-018 Ground sign $75.00 plus $0.25 a sq. ft. Ord. 2012-018 Plan review fee $50.00 Ord. 2012-018 Electrical fee – illuminated sign $50.00 Ord. 2012-018 Boulevard banners $50.00 Ord. 2012-018 Banners, pennants, searchlights, balloons or gas filled figures $50.00 Ord. 2012-018 Temporary identification sign $50.00 Ord. 2012-018 Permit renewal for special sign $50.00 Ord. 2012-018 Sign Code Variation: Sign variation application fee $125.00 Ord. 2003-032 Recovery of Cost Escrow Every petition shall be accompanied by the required filing fee plus an advance estimate in an amount between $250.00 and $1,500.00 for recoverable costs BGMC Chapter 3.06.040. PLANNING AND ZONING FEES Description Amount Reference Special uses, RE through R-7 Districts $100.00 BGMC Chapter 3.06.030.A.1. Special uses, property in all other districts (other than RE through R- 7) $200.00 BGMC Chapter 3.06.030.A.2. Planned Unit Development - amendment $100.00 BGMC Chapter 3.06.030.B.1. Planned Unit Development – new development BGMC Chapter 3.06.030.B.2. Rezoning or variation by Plan Commission (not part of a special use or Planned Unit Development) $200.00 BGMC Chapter 3.06.030.C. Zoning t ext amendment $100.00 BGMC Chapter 3.06.030.D. Concept Plan/Preliminary Plan review (pursuant to Development Ordinance, Section 16.20.020.B.) – sites five acres or less $150.00 BGMC Chapter 3.06.030.E.1. Concept Plan/Preliminary Plan review (pursuant to Development Ordinance, Section 16.20.020.B.) – sites large than five acres $150.00 + $25.00 for each acre or fraction over five acres. BGMC Chapter 3.06.030.E.2. Payment of Recoverable Costs and Recoverable Cost Escrow Every petition shall be accompanied by the required filing fee plus an advance estimate in an amount between $250.00 and $1,500.00 for BGMC Chapter 3.06.040. 318 recoverable costs POLICE DEPARTMENT FEES Description Amount Reference Accident Reports $5.00 625 ILCS 5/11-416 Arrest Video $50.00 General Order P -08 Fingerprint Fee $20.00 Village Ordinance 3.72.010 Municipal Bond Fee $20.00 Village Ordinance 3.70.010 Visa/Immigration Fee $15.00 Village Ordinance 3.72.020 Freedom of Information Act Request Free up to 50 pages 5 ILCS 140/6(a) DUI Vehicle Impoundment $500.00 Village Ordinance 10.20.010 False Alarms (within 1 year) Village Ordinance 9.4.080 1st $0.00 2nd $75.00 3rd $125.00 4th $175.00 5th-9th $200.00 10 or more $250.00 Alarm Systems Alarm registration fee shall be ten dollars for both original and renewal permits for any single fire alarm for any occupancy. Alarm registration fee shall be twenty dollars for both original and renewal permits for any combination fire/police alarm for any occupancy BGMC 9.04 (Ord. 2004-88 § 1 (part), 2004;) Fire Department Fees Description Amount Reference Emergency Medical Service and Transportation Fee Non-Residents BLS $650.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) ALS Level 1 $750.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) ALS Level 2 $925.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) Treat, Non-Transport $175.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) Mileage/mile $8.50 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) Residents BLS $475.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) ALS Level 1 $550.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) ALS Level 2 $700.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) Treat, Non-Transport 0.00 $0.00 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) Mileage/mile $8.50 BGMC 3.36(Ord. No. 2013-35, § 1, 7-17-2013) Hazardous Substance Removal and Abatement Actual personnel cost, including benefits, consultants, cost of equipment that is contaminated, material costs, contract or mutual aid costs, and attorneys fees. BGMC 8.48 (Ord. No. 1989-92) Specialized Emergency Response and Recovery Fee Motor Vehicle Incidents Non-Residents Level 1 $435.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $495.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 $605.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 4 $1,800.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) 319 Level 5 $2,200.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 6 Itemized BGMC 3.38(Ord. No. 2013-66, § 1, 9 -9 2013) Residents Level 1 $435.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $495.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 $605.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 4 $900.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 5 $1,100.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 6 Itemized BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Hazardous Materials Incidents Non-Residents Level 1 $700.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $2,500.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 $5,900.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Haz Mat Technician $50.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Residents Level 1 $350.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $1,250.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 $2,500.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Haz Mat Technician $50.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Pipeline/Power line Incidents Non-Residents Level 1 $400.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $1,250.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 Itemized BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Residents Level 1 $200.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $500.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 Itemized BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Fire Investigations Non-Residents Level 1 $275.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Residents Level 1 $275.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Water Incidents Non-Residents Level 1 $400.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $800.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 $2,000.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Technician $50.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Residents Level 1 $200.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 2 $400.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Level 3 $1,000.00 BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Technician $50.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Specialized Rescue Non-Residents Itemized BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Technician $50.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Residents Itemized BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Technician $50.00/hour BGMC 3.38(Ord. No. 2013-66, § 1, 9-9 2013) Specialized Emergency Response Services Actual personnel cost, including benefits, consultant, cost of BGMC 8.56 (Ord. No. 2004-33) 320 equipment that is contaminated, material costs, contract or mutual aid costs, and attorneys fees. CPR and First Aid Training Heartsaver AED $50.00 Authorized by the Fire Chief BLS for HCP $50.00 Authorized by the Fire Chief First Aid $50.00 Authorized by the Fire Chief Heartsaver AED Recert $35.00 Authorized by the Fire Chief BLS for HCP Recert $35.00 Authorized by the Fire Chief ENGINEERING FEES Description Amount Reference Preliminary Engineering Review Fee Preliminary Engineering Review Fee = 1% of cost of improvements, both public and private. BGMC Title 16 - Section 16.20.020.F. Engineering Review and Inspection Fee 3.5% of the total estimated cost of all improvements, both public and private, less the amount of the Preliminary Engineering Review Fee paid pursuant to Section 16.20.020.F. BGMC Title 16 - Section 16.20.080.D.1. Storm and Sanitary Sewer Television Inspections A two dollar and fifty cent($2.50) per lineal foot inspection fee for storm and sanitary sewer television inspections. BGMC Title 16 - Section 16.20.080.D.2. Pavement Evaluation Fee 15 cents per lineal foot for streets and 15 cents per square yard for parking lots BGMC Title 16 - Section 16.20.080.D.3. Water Connection Fees Size of Water Service Connection Fee Size of Water Meter Cost of Meter 1 inch $100.00 ¾ inch $143.00 1 ¼ inch $125.00 1 inch $180.00 1 ½ inch $150.00 1 ½ inch $1 ,145.00 2 inch $400.00 2 inch $1 ,336.00 2 ½ inch $625.00 3 inch $1 ,720.00 3 inch $900.00 4 inch $2 ,936.00 4 inch $1,600.00 6 inch On call (currently $5,051.00) 6 inch $1,800.00 8 inch $2,000.00 10 inch $2,200.00 (Labor rates for installation of meter size ¾" – 1 ½" = 50.00; labor rate for installation of 2" – 4" compound meters = 75.00; this applies to change of meter only) CONSTRUCTION WATER CHARGES VILLAGE SANITARY SEWER TAP -ON FEES Construction Values Fee Size of Connection Fee 0.00 - 29,999.99 $17.50 6 inch $50.00 30,000.00 - 49,999.99 $18.50 8 inch $200.00 50,000.00 - 74,999.99 $20.00 10 inch $300.00 75,000.00 and up 20.00 + .25¢/1,000 in excess of 75,000 Business, Taxes Licenses And Regulations Description Amount Reference Amusement Activities A nonreturnable fee of $50.00. BGMC 5.08 (Ord. 79-51 § 4, 1979) Raffles The license fee, if any, shall be established by the Corporate BGMC 5.09 (Ord. 88-73 § 1 (part), 1988). 321 Authorities for each raffle. Arts and Crafts Vendor License $20.00 for six days or fewer (Ord. 2003-24 § 1, 2003: Ord. 2003-19 § 2 (part), 2003). $50.00 per week $75.00 per month $150.00 per year Coin-Operated Amusement Devices Annual fee of $50.00 for each such amusement device. Any license issued between November 1st and April 30th of the following calendar year, the fee is $25.00 for each such amusement device BGMC 5.12 (Ord. 2002-41 § 1 (part), 2002) Liquor License Application Fee $500.00 BGMC 5.20 (Ord. 2008-13 § 1, 2008) (Ord. 2004-83 § 1, 2004;) Annual Liquor License Fees: Class A $2,500.00 Class B $2,300.00 Class C $2,500.00 Class D $1,800.00 Class E $1,500.00 Class F $2,000.00 Class G $100.00 Class H $250.00 Class I $1,200.00 Class J $4,000.00 Solicitor Permit Not-For-Profit - No Fee For-Profit -$50.00, plus $15.00 for each additional person BGMC 5.24.050 Public passenger vehicle license The annual fee for a public passenger vehicle license is $20.00. Licenses issued July 1st or after shall be $10.00. BGMC 5.28 (Ord. 94-85 § 11 (part), 1994 Tobacco $75.00 per annum. Every tobacco dealer having a mechanical device on his premises in addition to the sale of tobacco shall be required to pay an annual fee of $50 for each mechanical device. BGMC 5.32 (Ord. 95-105 § 2 (part), 1995;(Ord. 95-105 § 2 (part), 1995: Massage Establishments A $250.00 nonrefundable application fee . BGMC 5.44 (Ord. 2004-106 § 1 (part), 2004). Food and Beverage Vending Machines $30.00 each license and $15.00 for a half of a year. BGMC 5.52 (Ord. 95-105 § 1, 1995:) Cable/Video Service Provider Fee and Peg Access Support Fee 5.00% of the holder's gross revenues. The amount of the PEG access support fee imposed hereby shall be one percent of the holder's gross revenues or, if greater, the percentage of gross revenues that incumbent cable operators pay to the Village or its designee for PEG access support in the Village. BGMC 5.74 (Ord. 2007-59 § 2 (part), 2007) 322 Taxes Description Amount Reference Hotel & Motel Tax 6.00% of the gross rental receipts from such a rental, leasing or letting. BGMC 3.28 (Ord. 2007-49 § 1, 2007) Foreign Fire Insurance Tax 2% per annum of the gross receipts received as premiums upon fire insurance policies on property located in the Village. BGMC 3.32 ((Ord. 91-34 § 1 (part), 1991) Home Rule Municipal Retailers & Service Occupation 1.00% of the gross receipts from all business sales made in the course of such business while this Chapter is in effect; and a tax is imposed upon all persons engaged in the Village of Buffalo Grove in the business of making sales of service, at the rate of one percent of the selling price of all tangible personal property transferred by such serviceman as an incident to the sale of service. BGMC 3.40 ((Ord. 2004-16 § 1, 2004) Real Estate Transfer Tax Three dollars for every one thousand dollars value thereof as stated in the declaration. If the value of the fraction of every one thousand dollars is five hundred dollars or less, the value shall be rounded down to the nearest one thousand dollars. If the value of the fraction is five hundred dollars and one cent or more, the value shall be rounded up to the nearest one thousand dollars. BGMC 3.44 (Ord. 91-89 § 1 (part), 1991) Prepared Food and Beverage Tax 1.00% of the purchas e price of prepared food and alcoholic liquor at any prepared food facility or liquor facility within the Village BGMC 3.48 (Ord. 2007-62 § 2 (part), 2007) Municipal Telecommunications Infrastructure Maintenance Fee 1.00% of all gross charges charged by the telecommunications retailer to service addresses within the Village for telecommunications originating or received in the Village. BGMC 3.56 (Ord. 97-71 § 2 (part), 1997) Simplified Municipal Telecommunications Tax 6.00% of the gross charges for such telecommunications purchased at retail from a retailer. BGMC 3.64 (Ord. 2002-50 § 4 (part), 2002) Municipal Gas Use Tax 0.05 per therm. BGMC 3.65(Ord. No. 2009-89, § 2, 12-21-2009) Municipal Electricity Use Tax Next 500,000 0.34 Next 2,000,000 Next 2,000,000 0.315 Next 5,000,000 0.31 Next 10,000,000 0.305 Excess of 20,000,000 0.3 The tax is in addition to all taxes, fees and other revenue measure BGMC 3.66(Ord. No. 2009-90, § 2, 12-21-2009) 323 imposed by the Village, the State of Illinois, or any other political subdivision of the State. Municipal Automobile Renting Occupation Tax and Municipal Automobile Renting Use Tax 1.00% of the rental price of such automobile while this chapter is in effect BGMC 3.68 (Ord. 2001-79 § 1, 2001: 2001-78 § 1 (part), 2001) 324 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                              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, commitmen ts, 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 d. Assigned Fund Balance e. Unassigned Fund Balance F. The Finance Director will determine if a portion of fund balance should be assigned. Purchasing Policy Overview *Revised by Resolution 2015 -24 on August 3, 2015. Full pol icy 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 servic es efficiently and economically. 327 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 relevan t 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 modifica tion 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 328 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, with out 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 th at 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.  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. Investment Policy 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: Th is 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 s pecial 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. 330 (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. 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 manage the Village of Buffalo Grove’s investment program is derived from the following: 331 The establish ment 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 Financ e 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 respectiv e 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:  • Separation of transaction authority from accounting and recordkeeping • Custodial safekeeping • Avoidance of physic al 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); • Consistent with the GFOA Recommended Practice on Use of Derivatives by State and Local Governments (attachment #1), extreme caution should be exercised in the use of derivative instruments. 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. The Village will accept any of the following assists as collateral: • Government Securities • Obligations of Federal Agencies • Obligations of Federal Instrumentalities • 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 110% 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), • No financial institution shall hold more than 40% of the Village’s investment portfolio • Monies deposited at a financial institution shall not exceed 75% of the capital stock and surplus of that institution. • Commercial paper shall not exceed 10% 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. Reserv e 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 monthly, including a management summary that provides an analysis of the status of the current investment portfolio and the individual transactions executed over the month. 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. • 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. Debt Policy A debt policy is a formal document governing when, how, for what purposes, and to what extent debt may be issued. A sound debt policy will provide benefit and guidance to the Village of Buffalo Grove not only as to how it manages the repayment of outstanding debt but can serve to manage the Capital Improvement Plan adopted annually. Debt policy can: • Help avoid common pitfalls of debt issuance and management. • Promote long-term financial stability, including managing tax levies. • Send a message regarding fiscal responsibility to the community. • Assist in not only maintaining but improving bond ratings. • En hances regulatory compliance matters. • Assures that borrowing is done at the lowest cost to the community. An effective debt policy should be firm in intent but not onerous to the extent that flexibility in approach toward use and design of debt becomes difficult. Elements should include, but not be limited to, the purposes for which debt may or may not be used, the limitations of debt, and the standards for debt issuance. The following represent elements of the debt policy for the Village of Buffalo Grov e. • 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 onto long-term debt, should be a practice that is expressly prohibited. To further support this policy, the highest priority for the issuance of long-term debt will be to further the Village’s Capital Improvement Plan. In terms of this and other policy statements, long-term debt will be bonded indebtedness whose maturity is at least ten years from the date of original issue. • 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. • The Village will use only level or declining debt repayment schedules, avoiding back-loaded or balloon repayment schedules or variable-rate debt. This is to avoid fluctuations in debt service requirements as well as fluctuations in tax levy rates. Only in those circumstances where it is to the Village’s advantage will debt service be scheduled on a non-even repayment basis. Level or  declining repayment schedules incur less interest cost whil e the use of delayed or balloon schedules incur greater interest cost. Lastly, the use of variable-rate debt requires dependence upon some external measure and indices and may be considered a form of speculation. • A policy of full disclosure will be followed in all financial reports, official statements and as part of any mandatory continuing disclosure undertaking. Information required to be distributed, by law, to any Nationally Recognized Municipal Securities Information Repository (NRMSIR) shall follow guidelines set forth from time to time, including any required Material Events Disclosure as interpreted under the Securities Exchange Act of 1934, as amended. Lastly, the Village will use generally accepted accounting principles in the preparation of all financial statements used in complying with disclosure requirements. All financial statements will be audited annually by an independent, certified public accounting firm. • Municipalities of less than 500,000, unless they are a home rule unit, are limited in the amount of indebtedness they can incur at any one time to no more than 8.625% of assessed and equalized valuation. However, as a policy-planning target, the Village shall endeavor to have no more indebtedness outstanding at any one time in an amount greater than four percent (4%) of assessed and equalized valuation. In the event of an extraordinary situation as determined by the President and Board of Trustees, the Village may have outstanding debt in an amount exceeding 4% of its assessed evaluation. • Overall, the Village will repay any indebtedness incurred in the shortest possible time without creating undue hardship for tax or ratepayers. • Capital improvement or refunding indebtedness will be funded with General Obligation Bonds unless there are other, more appropriate, means of financing. Such alternative financing might include, but not be limited to, revenue bonds, special service area bonds, tax increment allocation revenue bonds, and special assessments. • Indebtedness to be issued by the Village will be offered through the competitive bidding process except as expressly approved by the President and Board of Trustees. If it is proposed that debt not be issued through competitive bidding, such request will state the compelling reasons why the competitive bidding process is not deemed suitable for the particular issuance of debt. Competitive bidding can reduce interest cost, avoids questions of unfairness and favoritism in the underwriting selection process and should validate the ultimate price paid for debt. • Any consultants providing advice and counsel for any issuance of Village debt, as well as broker/dealers acquiring Village debt shall be independent. Financial advisors, bond counsel, and any broker/dealer for any issuance of debt shall each be separate entities having no relationship with each other. This is intended to prevent any conflict of interest, incorporating within the Policy the requirements of Municipal Securities Rulemaking Board Rule G-23, which permits financial advisor/underwriter relationships if such relationships are disclosed to the Village as issuer. • Any financial advisor and bond counsel shall provide full and continuing disclosure to the Village of any relationship or agreement, formal or informal, which may be in conflict with the best interests of the Village. The financial advisor and bond counsel shall further be prohibited from engaging in such relationships or agreements without the express prior consent of the Village. Any potential for conflict of interest, where it may exist, should be expressly recognized by all consultants.  While the Village intends to match its borrowing needs with those identified within the approved Capital Improvement Plan or in some cases, the refunding of outstanding debt at a lower net interest cost, with long-term debt, there may be instances with other debt may be advantageous to issue. Additionally, there may be a need to employ what will be defined as interim debt. The following policies are applicable to the issuance of either short- term or interim debt: • Short-term debt shall be considered indebtedness issued for a term of 10-years or less. The use of such debt, with the exception of current debt refunding, shall be intended to provide financing for municipal needs such as purchasing/replacing fleet equipment, renovation or reconstruction of capital assets, purchases of specialized types of equipment, or to acquire communications or data systems/equipment. Each proposal for short-term financing shall be evaluated on a case-by-case basis with final approval granted by the President and Board of Trustees. • Interim debt shall be considered indebtedness issued for a term of less than 5-years. Such borrowing may be utilized for the temporary funding of operational cash flow deficits pending receipt of anticipated revenues or for interim capital financing needs; an internal borrowing for operational or capital acquisition would qualify as interim debt. Repayment will occur over a period not to exceed the useful life of the underlying asset but in any case, no longer than 5-years, although the period could vary depending on the nature of the asset financed. In terms of internal borrowing for purposes other than capital acquisition, the term will be no greater than 5-years. Policy on Revenue Based Debt: The Village may find it advantageous to issue revenue based debt to fund enterprise capital financing needs. Should such indebtedness be required, the following standards shall apply: • An annual rate and fee review will be conducted as part of the fiscal year budget process to ensure that predictable and affordable charges for services are in effect. • The Village will maintain rates and fees necessary to conform to bond coverage requirements that may be required. • The primary option for any enterprise financing, and to also serve as a modeling tool for future rate and fee requirements, shall be debt with a maximum maturity of 20-years. Village Board Authorizations: All long, short, and interim term borrowing shall require approval of the President and Board of Trustees prior to authorization. Alternative Financing: The Village will issue alternate type of indebtedness such as, but not limited to, Special Service Area Bonds or Tax Increment Allocation Revenue Bonds when beneficial to an identified development strategy approved by the President and Board of Trustees. Such indebtedness shall be considered limited obligations of the Village secured by special taxes authorized by statute or in the case of TIF, by incremental property and sales taxes. The Village will not use its full faith and credit to secure any alternative financing. Further, should the Village issue alternative type debt, it shall take any and all reasonable steps to confirm the financial feasibility of any projects and the financial solvency of the end user(s). Further, all precautions will be taken to ensure that a true public purpose and financial viability exists for all such projects funded. Other Agency Financing: Through intergovernmental agreement, the Village may be obligated for a portion of debt issued by an associated public agency such as the Solid Waste Agency of Northern Cook County or Northwest Water Commission. Depending upon the nature of the obligation, disclosure will be noted within the Village’s Comprehensive Annual Financial Report following generally accepted accounting principles. If the nature of an external financing requires  disclosure within the financial statements of the Village, such indebtedness obligations will be properly accounted for and disclosed. Bond Covenants and Laws: The Village shall comply at all times with all covenants and requirements of bond ordinances as well as supplemental transcript documents as well as State and Federal laws authorizing and governing the issuance and administration of debt obligations. Debt Policy and Rating Agencie s: Underwriting and municipal credit rating institutions base their evaluation of the Village upon its ability to ensure that new debt is incurred in a prudent manner, so as to maximize the credit worthiness of the Village. This is important if the Village is to upgrade its present bond rating, and in extreme conditions, maintain its current rating. Rating agencies have advised that one of the major criteria used in evaluating credit worthiness is whether a local jurisdiction has an objective but flexible debt policy which serves as a guideline for making decisions about how much new debt to incur or have outstanding at any one time. Generally, rating agencies will view, as positive, criteria that are conservative. A local government should only borrow what it can afford and retire principal in a timely and aggressive manner. 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. 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. 338 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 inc urred 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. 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 a cquired 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 origina l 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 subj ective, 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 in to 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 • 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 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 dona tion 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.  Village of Buffalo Grove FY 2016-2020 Five Year General Fund Operating Forecast 341 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 goal s 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 veh icles, buildings, and technology. The assessment analyzes the capacity to fund capital projects and restor e 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 Trustees in establishing priorities and allocating resources appropriately. As part of the process, the Village is working on aligning core revenues with core services. The rev enues 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 involv e 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 . 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 2014 expenditures set the 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. 342 baseline for analysis and are inflated or adjusted accordingly based upon changing service needs and known changes that were incorporated in the FY 2015 Budget. The General F und 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 tota l budget. A twenty -year funding analysis is c ompleted 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 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 wi ll 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 -.68 percent. The most recent (June 2015 ) Consumer Price Index is at .04 percent, Producer Price Index is -6.53 percent and Construction Cost index is 2.14 percent. Stock Market Returns – Stock market returns are a leading indicator and will change before the economy changes . Approximately 50 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. 343 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. 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 three year s , the Village will be moving towards program based budgeting. The result of the change is that budgets will be developed around cost centers to capture the true cost of providing individual programs or services . The first step in program based budgeting was the designation of Internal Service Funds in the FY 2015 Budget. Internal Ser vice Funds are departments that have a primary objective to support internal operations . That support, in turn, allows other departments to provide core services to the public . Internal Services include Building Maintenance, Central Garage, and Information Technology. Factors that are to be considered moving i nto the next five-year update include; 344 • Impact of the real estate market and assessed valuations. Assessed values for taxable property have declined 28 percent over the last four years. The decline has been disproportionate over all class es of properties . The b runt of the changing tax burden has fallen on residential properties. • State of Illinois budget crisis. The State of Illinois is at a budget impasse. Possible solutions include a two- year property tax freeze and/or reductions in Local Government Distributive Fund (LGDF) allocations . • 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 abi lity 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 2017. 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 redevelop ment 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 (2016-2020) 2016 2017 2018 2019 2020 Growth Property Taxes 14,455,991 14,889,671 15,336,361 15,796,452 16,270,346 1.03 Income & Use Taxes 5,553,856 5,720,472 5,892,086 6,068,848 6,250,914 1.03 State Sales Tax 5,620,000 5,788,600 5,962,258 6,141,126 6,325,360 1.03 Home Rule Sales Tax 4,223,000 4,349,690 4,480,181 4,614,586 4,753,024 1.03 Real Estate Transfer Tax 790,000 813,700 838,111 863,254 889,152 1.03 Telecommunications Tax 1,639,327 1,639,327 1,639,327 1,639,327 1,639,327 1.00 Prepared Food and Beverage Tax 780,000 795,600 811,512 827,742 844,297 1.02 Utility Tax- Electric/Natural Gas 2,640,000 2,640,000 2,640,000 2,640,000 2,640,000 1.00 Licenses 291,600 291,600 291,600 291,600 291,600 1.00 Building Revenue & Fees 706,000 713,060 720,191 727,393 734,666 1.01 Intergovernmental Revenue-Local 265,643 270,956 276,375 281,902 287,540 1.02 Fines & Fees-Police & Fire 1,604,738 1,636,833 1,669,569 1,702,961 1,737,020 1.02 Operating Transfers 852,500 869,550 886,941 904,680 922,773 1.02 Miscellaneous Revenue 1,505,360 1,520,414 1,535,618 1,550,974 1,566,484 1.01 Total Revenues 40,928,015 41,939,472 42,980,129 44,050,845 45,152,502 Annual Increase 2.5% 2.5% 2.5% 2.5%  State Property Tax Freeze (433,679.74) (854,728.03) (880,369.87) (906,780.97) (933,984.39) L.G.D.F. Reduction @ 10% (462,800.00) (476,684.00) (490,984.52) (505,714.06) (520,885.48) General Fund Expenditures Projected (2016-2020) 2016 2017 2018 2019 2020 Growth Personal Services 19,811,404 20,603,860 21,428,015 22,285,135 23,176,541 1.04 Personal Benefits 10,325,000 10,686,375 11,060,398 11,447,512 11,848,175 1.035 Operating Expenses 2,516,618 2,566,950 2,618,289 2,670,655 2,724,068 1.02 Insurance & Legal Services 1,500,000 1,560,000 1,622,400 1,687,296 1,754,788 1.04 Commodities 441,140 450,845 460,763 470,900 481,260 1.022 Maintenance & Repairs 3,215,606 3,286,350 3,358,649 3,432,540 3,508,056 1.022 Capital Outlay 400,000 408,800 417,794 426,985 436,379 1.022 All Other Expenses 350,000 355,250 360,579 365,987 371,477 1.015 Total Expenditures 38,559,768 39,918,430 41,326,887 42,787,011 44,300,743 Operating Surplus/(Deficit) 2,368,247 2,021,042 1,653,242 1,263,834 851,759 Annual Increase 3.2% 3.5% 3.5% 3.5% 3.5% General Fund Transfers Projected (2016-2020) 2016 2017 2018 2019 2020 Capital Reserve - Vehicles 850,000 850,000 850,000 850,000 850,000 Capital Reserve - Facilities 200,000 200,000 200,000 200,000 200,000 Capital Reserve - Technology 75,000 75,000 75,000 75,000 75,000 Motor Fuel Tax 844,600 869,938 896,036 922,917 950,605 Capital Improvement Plan 1,188,356 534,535 910,804 613,840 508,430 Total Transfers 3,157,956 2,529,473 2,721,840 2,451,757 2,374,035 Total Fund Surplus/(Deficit) (789,709) (508,431) (1,068,598) (1,187,923) (1,522,275) 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 2016-2020 have been added to this report. After including these transfers, the total fund shortfall at the end of FY 2016 is estimated to be nearly $.8 million. Again, the shortfall is the result of incorporating all initial capital requests and full capital reserve funding. 346 Included with the review are two rows in dark blue. The rows signify State of Illinois legislative threats to revenue. At the time of this report, the property tax freeze passed out of the Senate with an affirmative vote. Once there is clarity on any legislative impacts, this report will be modified to reflect those changes . Staff has constructed several scenarios of potential revenue enhancements and/or budget cuts to address compromised state shared revenues and property tax limitations. 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 either a significant revenue enhancement, a reduction in services, or a combination of both. The impact of doing nothing has severe consequences on the Village’s reserves. 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 (less pension and capital funding transfers). Within the adopted Strategic Priorities is a goal of reestablishing a 35 percent threshold by the end of FY 2016. It is importan t 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. 347 The red line on the graph represents the fund balance policy minimum of 25 percent less pension and capita l 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 (2014), unassigned fund balance represents 32.71 percent of the operating expenses of the FY 201 5 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. Revenue Review Approximately 86 percent of all General Fund revenue is generated from seven revenue sources including property tax, combined s ales tax including prepared food and beverage, i ncome 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 i ncome. The property tax is an example of a non-elastic source of revenue as collections are stable and predic table. The following is a summary of significant Village revenue sources. PROPERTY TAX Growth in the c orporate 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. $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 02-03 03-04 04-05 05-06 06-07 2007 2008 2009 2010 2011 2012 2013 2014 pro 2016 pro 2017 pro 2018 pro 2019 pro Unassigned Fund Balance General Fund 348 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. A continuing concern with property taxes is the lack of growth in the property tax base. Assessed value declines began in 2010 (6.47%). Subsequently, the following declines have taken place – 2011 (6.18%), 2012 (8.01%), 2013 (7.45%), and 2014 is estimated to be near zero . Because the Village levies a dollar amount, a uniform change across all property classifications has no financial impact to tax payers . This dynamic has not materialized as commercial/industrial properties have been more successful contesting and decreasing their property values . Any aggregate decrease that exceeds the county average decrease results in a greater share of the tax burden shifted to residential properties. Listed below is a history of equalized assessed valuations since 2004. Future ability to raise property tax revenue to support General Fund operations will be 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 (2014 ), pensions represent 41 percent of property tax as illustrated below. The corporate l evy, which funds core General Fund services , has been stagnant until the current year. There was a 3 percent increase in the 201 4 levy . The large increase in 2007 was 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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Equalized Assessed Valuation Cook County Total EAV Lake Couty 349 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. SALES TAX Inflation sets the growth baseline for both the base (3%) and home rule s ales 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 with in 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 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Components of Tax Levy Debt Service Fire Pension Police Pension IMRF/FICA Corporate 350 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 June 201 5 is 4.4 percent, Cook County is 6.5 percent, Lake County is 4.6 percent, and the State of Illinois is 6.9 percent. The growth in revenue is due to improving corporate earnings, recovery in employment, and tax changes to increase total net income. The f orecast accounts for 3 percent $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 pro. 2016 est. State Sales Tax History $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,500,000 $4,000,000 $4,500,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 est.2016 pro. Home Rule Sales Tax History 351 growth each year through the duration of the forecast. The chart below shows the performance of the revenue since FY 2006. 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 11 1 establishments that charge and remit this tax to the Village. The following chart shows the growth of the revenue since inception. The revenue dro p in FY 2014 is due to the Dominick’s closing. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 est 2016 pro Income & Use Tax Revenue History $635,000 $655,000 $675,000 $695,000 $715,000 $735,000 $755,000 $775,000 2009 2010 2011 2012 2013 2014 2015 est 2016 pro Prepared Food and Beverage Tax 352 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 36 percent from the peak in FY 2007. The forecast calls for a continued decline in 2016 then flat over the remainder of the plan. 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 . An y 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. 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 est 2016 pro Telecommunication Tax History 353 Expenditure Review The average annual increase in operating expenditures over the next five years is 3.5 percent. In each of the next five years, wages and benefits account for about 73.6 percent of all expenditures . The next largest expenditure account group is for Maintenance and Repair expenditures (7.6 percent). For FY 201 6 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 b e adjusted to - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 est 2016 pro Real Estate Transfer Tax 48% 25% 5% 3% 1% 8% 1% 1% 3% 2% 3% FY 2016 Expenditure Distribution Personal Services Operating Expenses Insurance & Legal Commodities Maintenance & Repairs Capital Outlay All Other Expenses Capital Reserve Transfers Motor Fuel Tax Capital Improvement Plan 354 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 216 employees or 11.2 percent less than staffing levels five years ago. The chart below shows the financial impact of the efforts to reorganize Village operations . The data includes all employees spanning the General, Water, and Golf Funds. A major initiative in FY 2015 is to esta blish 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 2016 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. PERSONAL BENEFITS The largest single expendi ture 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 3.5 percent growth each year in premium exp enses . There will be a spike in the health insurance costs in FY 2016. After experiencing two years with an average annual growth of 1.5 percent, the premium will need to be adjusted by nearly 10 percent. The Village does continue to reap the benefits of pooling health insurance risk as the average national increase is 7.2 percent per year. Over the five-year projection, the employees’ contribution is set to cap at 15 percent of the premium in FY 2016. 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. 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 2017 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 $5.9 million in 2016 or 14.1 percent of the General Fund Budget. 355 INSURANCE Within the Insurance category is the premium paid to the Intergovernmental Risk Management Pool (IRMA) for general liability and workers’ compensation coverage. The deductible was lowered in FY 2014 from $50,000 to $25,000 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 .2 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 2.2 percent per year. Included in these expenditures are costs related to the maintenance and repair of sidewalks and bike paths, street patching, street lights, building facilities, vehicles and parkway trees . Included in these costs are Internal Service Chargebacks for Central Garage and Building Maintenance expenditures. General Fund Transfers Included in the transfers are $5.63 million for vehicles, technology, 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. $4.49 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 45 perc ent of the streets identified f or improvement in a given year. In FY 2016, staff will be recommending a debt issuance to supplement both state shared Motor Fuel Tax revenue and Home Rule Sales Tax. At the end of FY 2015, staff will present a recommendation on the $6 million line of credit for tree replacement. The line of cr edit will either need terms renegotiated or a take out financing will be structured. The Five Yea r Financial Forecast calls for a cumulative five-year shortfall of $5.1 million over the review period . Given the relatively stagnant revenues and growing infrastructure needs, this deficit is not unexpected. Two years ago, the same gap was estimated at $8.1 million . Future funding strategies will need to address shortfalls on either 356 or both sides of the 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 l ast 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 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 2016 Budget and will help sha pe 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. 357 VILLAGE OF BUFFALO GROVE TO: Dane C. Bragg, Village Manager FROM: Scott D. Anderson, Finance Director DATE: August 12, 2015 RE: FY 2015 – Water Fund 20 Year Pro Forma Annual Update System Status Update In FY 2015, the combined Village water and sewer rate was increased by four percent. The intent of the rate is to match th e 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 $3.1 million • The fund generated a surplus of $113,145. The previous year was a loss of $.4 million. • Total gallons billed were 1.2 billion (proforma estimate – 1.31 billion). 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 was billed. In 2013, 1.27 billion gallons were billed, a decrease of 22 percent. There is no expectation that the amount of wa ter 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 1993.  The outli er 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 2010. 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. Last year marked the lowest amount of water billed since 1987. This year, water usage is trending the 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. One factor that has not been integrated into this analysis is any potential impact of replacing worn out meters in homes. As these devices start to fail and are replaced, there is the potential for more accurate (higher) reads. The Village is currently working with Siemens Industry, using a performance contracting model that may result in replacing all water meters in the Village. Ideally, the savings generated through more efficient measurement will offset the cost of the capital (meters). For purposes of this analysis, the water meter project was excluded, to be considered as a standalone project. 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 Annual Gallons Billed (in thousands) 359 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 2015, working cash is anticipated to be $1.1 million and the net reserve is $2.8 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 s tudy, 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 rolli ng 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 Str eet Fund or the Motor Fuel Tax Fund. - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Cash Position Net Reserve Working Cash 360 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 c onversely, 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 pressure. Since the Village does not treat waste there are no treatment facilities to fund. For the purpose of the 0 20,000 40,000 60,000 80,000 19 2 9 19 5 8 19 6 0 19 6 2 19 6 6 19 6 8 19 7 0 19 7 2 19 7 4 19 7 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 361 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 2016 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. 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. 362 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 insura nce 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. Multi-Year Approach to Employee Health Care Premium Contributions For a decade, the Village charged its eligible employees 10% of the premium for their medical insurance benefit. Effective January 1, 2012, the Village began a multi -year approach to increasing medical premium contribution to 15%. This year the employee contribu tion will be 15%. The FY2012-FY2016 medical insurance premium contribution schedule that has been adopted for all eligible Village employees, including those in bargaining uni ts , is as follows: • 2013 – 12% employee contribution to health insurance premium. • 2014 – 13% employee contribution to health insurance premium. • 2015 – 14% employee contribution to health insurance premium. • 2016 – 15% employee contribution to health insurance premium.  2015 versus 2016 Premium Structure ($) 2015 Monthly rates 2016 Monthly rates PPO-A Medical Plan 90% In-Network / 70% Out of network benefit Employee Village Total Employee Village Total Single employee 78.79 483.99 562.78 78.43 444.45 522.88 Single + 1 dependent 159.15 977.67 1,136.82 158.44 977.67 1,136.11 Family + 2 dependents 281.28 1727.83 2,009.11 280.01 1727.83 2 ,007.84 2015 Monthly rates 2016 Monthly Rates PPO-B Medical Plan 100% In-Network / 0% Out of network benefit Employee Village Total Employee Village Total Single employee 85.05 569.19 654.24 95.00 538.31 633.31 Single + 1 dependent 171.8 1149.75 1,321.55 191.89 1087.40 1279.29 Family + 2 dependents 303.63 2051.99 2,355.62 339.14 1921.77 2260.91 2015 Monthly rates 2016 Monthly rates HMO Medical Plan Employee Village Total Employee Village Total Single employee 72.47 485.00 557.47 99.98 566.57 666.55 Single + 1 dependent 146.39 979.70 1,126.09 201.97 1144.48 1346.45 Family +2 depe ndents 258.72 1731.45 1,990.17 356.94 2022.68 2379.62 DENTAL 2015 Monthly rates 2016 Monthly rates No employee contribution Employee Village Total Premium Employee Village Total Single employee 0 48.80 48.80 0 44.00 44.00 Single + 1 dependent 0 82.16 82.16 0 74.08 74.08 Family + 2 dependents 0 137.78 137.78 0 124.22 124.22 366 Employee Staffing Levels Office of the Village Manager/ Administration FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Administrative Intern 0 1 0 0 0 0 Communications Manager * 0 0 1 0 0 0 Deputy Village Manager 1 0 1 0 1 0 Management Analyst 1 0 1 0 1 0 Secretary 1 0 0 0 0 0 Village Manager 1 0 1 0 1 0 Total 4 1 4 0 3 0 Full & Part -Time Total 5 4 3 Human Resources FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Director of Human Resources 1 0 1 0 1 0 Management Analyst 0 0 1 0 1 0 Secretary 0 1 0 0 0 0 Total 1 1 2 0 2 0 Full & Part -Time Total 2 2 2 Finance & General Services FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Accountant 1 0 1 0 1 0 Deputy Clerk 0 0 0 0 .5 0 Deputy Finance Director 1 0 1 0 1 0 Cashier 0 0 0 0 .5 0 Clerk II 2 0 2 0 2 0 Clerk III 2 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 Secretary 1 0 0 0 0 0 Total 10 0 8 0 9 0 Full & Part -Time Total 10 8 9 *Communications Manager position will be outsourced starting in 2016 367 *Additionally, two full-time Building Inspectors serve as part-time fire inspectors. Information Technology FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Director of Information Technology 1 0 0 0 0 0 Information Technology Analyst 1 0 0 0 0 0 Information Technology Assistant 1 0 0 0 0 0 Programmer 0 0 0 0 0 0 Total 3 0 0 0 0 0 Full & Part -Time Total 3 0 0 *Information Technology was contracted to InterDev in 2014 Community Development FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Administrative Assistants 2 0 2 0 2 0 Associate Planner 0 1 0 1 0 0 Building Commissioner 1 0 1 0 1 0 Building Inspector 1 0 1 0 1 0 Cashier 0 0 0 0 .5 0 Clerk II 0 2 0 1 0 1 Community Development Director 0 0 1 0 1 0 Deputy Building Commissioner 0 0 0 0 0 0 Deputy Clerk 0 0 0 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 10 3 11 2 12 1 Full & Part -Time Total 13 13 1 3 Fire Services FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Battalion Chief 4 0 4 0 4 0 Deputy Fire Chief 1 0 1 0 1 0 Deputy Fire Marshall 0 0 0 0 0 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 0 1 1 0 1 0 Total 58 3 59 2 59 2 Full & Part -Time Total 61 61 61 368 Police Services FY 2014 FY 2015 FY 2016 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 3 0 2 0 Crossing Guard 0 9 0 9 0 8 Deputy Police Chief 1 0 2 0 2 0 Desk Officer 2 3 2 3 2 3 Evidence Custodian 0 1 0 1 1 0 Lieutenant 3 0 4 0 4 0 Patrol Officer 48 0 47 0 47 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 Technical Services Administrator 1 0 1 0 1 0 Administrative Assistant 1 0 1 0 1 0 Total 74 14 74 14 74 12 Full & Part -Time Total 88 88 86 Golf Operations FY 2014 FY 2015 FY 2016 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 15 0 30 Golf Course Cashier- Seasonal 0 9 0 9 0 0 Golf Maintenance worker I 0 0 0 0 0 0 Golf Course Maintenance Worker - Seasonal 0 14 0 14 0 0 Golf course maintenance worker II 1 0 1 0 0 0 Golf course maintenance worker III 1 0 1 0 0 0 Golf Course starter/ranger- seasonal 0 11 0 11 0 0 Golf Course Superintendent 1 0 1 0 0 0 Horticulturalist 1 0 1 0 0 0 Total 7 51 7 51 3 32 Full & Part -Time Total 58 58 35 Public Works/Engineering FY 2014 FY 2015 FY 2016 FT PT FT PT FT PT Automotive Mechanic II 3 0 3 0 3 0 369 Automotive Mechanic III 1 0 1 0 1 0 Automotive Shop Assistant 0 1 0 1 0 1 Building Maintenance Supervisor 1 0 1 0 0 0 -Building Maintenance Manager 0 0 0 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 1 0 Civil Engineer II 1 0 1 0 1 0 Clerk II 0 0 0 0 0 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 Facility Coordinator 0 0 0 0 0 0 Fleet Manager 1 0 1 0 1 0 Forestry and Grounds Supervisor 1 0 1 0 0 0 Forestry & Grounds Manager 0 0 0 0 1 0 Laborer – Seasonal 0 6 0 6 0 6 Maintenance Worker I 9 0 8 0 6 0 Maintenance Worker II 10 0 13 0 14 0 Maintenance Worker II – CL 7 0 6 0 6 0 Maintenance Worker III 1 0 0 0 0 0 Metra Station Attendant 0 0 0 0 0 0 Operations Mgr – Streets, Drainage, Sanitary Sewer 1 0 0 0 0 0 -Superintendent of Maintenance 0 0 1 0 1 0 Seasonal Snow Plow Driver 0 1 0 1 0 1 Secretary 3 0 2 1 2 1 Sewer & Drainage Manager 0 0 1 0 1 0 Streets Manager 0 0 1 0 1 0 Superintendent of Water Operations 1 0 0 0 0 0 Superintendent of Utilities 0 0 1 0 1 0 Village Engineer 1 0 1 0 1 0 Water Manager 0 0 1 0 1 0 Total 48 9 50 10 49 10 Full & Part -Time Total 57 60 59 370 This page intentionally left blank. 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. 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. 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. 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.) 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. 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. 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. 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. 374 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 views and recommendations of the Village Manager . 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. Debt: A financial obligation resulting from the borrowing of money. Debts of government include bonds, notes, lines of credit, and land contracts. Deficit : The excess of expenditures or expenses over revenues or income during a single accounting period. 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. 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. 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 375 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. 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 activi ties 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 376 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 p urposes 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 meas uremen t 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. Income : A term used in proprietary fund type accounting to represent (1) revenues, or (2) the excess of revenues over expenses. IRMA (Intergovernmental Risk Management Agency): An organization of 75 municipalities in the six county collar areas around Chicago, which joined to pool insurance risk, cost, and coverage. IRMA, through its risk -sharing provisions, provides the Village with coverage for liability, property damage, automobile, and worker's compensation insurance. 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 annual budget and the appropriation ordinance. 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. 378 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 peri od 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. 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. 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. 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. 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. 379 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. 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. Acronyms CAD: Computer Aided Dispatch 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 GovIT: Municipal 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 3 380 MDC: Mobile Data Computer MFT: Motor Fuel Tax NWCDS: Northwest Central Dispatch System NWWC: Northwest Water Commission OTSW: Opportunities, Threats, Strengths, and Weaknesses 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 381